Project Pro Forma

Project Work

1. Select any public limited company - download their annual report - select their latest income statement and balance sheet

2. Prepare the estimated income statement and balance sheet for the next three financial years.

3. Estimate the internal growth rate and external growth rate for the company.

4. You can calculate the CAGR of sales in the past three or more years.

5. Decide as a group, would you like to estimate the growth in

Either similar to CAGR or SGR or IGR; Based on the decision prepare the estimated income statement and balance sheet for the coming years. Please do remember to calculate the External fund requirement for each year based on the assumptions on the growth rate, dividend payout ratio, profit margin etc.

6. The basis of your estimation should be relevant and realistic.

7. You can refer chapter number 5 in the book - use various aspects discussed in the class.

8. Write down all the assumptions for your projections- The detailed assumptions carry more marks.

9. Submissions should be in Excel format only; Soft copy ; no pdf;

10. It is not the accuracy of projections/ estimations that will be evaluated; but the basis of the projections and the realistic approach /detailed assumptions will be given marks.

THEME 1: An overview of Financial Management

THEME 2: Financial Planning and Forecasting

Pre-Session Readings

• Textbook

 Financial Management: Theory & Practice, 9th Edition, McGraw Hill Publishing

by Dr. Prasanna Chandra.

Chapter 1: Financial Management: An Overview

Chapter 5: Financial Planning and Forecasting

Additional Readings

 10 Ways to Create Share Holder Value -

Alfred Rappaport Harvard Business Review September 2006

Classroom Session