SYNOPSIS FORMAT

Name Roll No. Email ID Faculty Guide

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Vinay Pratap Singh PG-11-64 vinay.pratap95@gmail.com Prof. Lata Singh

Date of synopsis submission

Project Title: The Study of Interpretation of Financial Statements of LG

Abstract/ Summary: The history of LG Electronics has always been surrounded by the company's desire to create a happier, better life. LG Electronics was established in 1958 and has since led the way into the advanced digital era thanks to the technological expertise acquired by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company

1.Objectives: 1.To study about LG and its related aspects like its products & Services, history, organizational structure, subsidiary companies etc. 2.To analyze the financial statements i.e. P&L account and Balance sheet of LG 3.To Understanding the meaning and need of Balance Sheet, P&L and Cash Flow account.

2 .ProjectOutcomes:

1.To assess past performance and current financial position. 2.To make predictions about the future performance of a company.

3.Why this project?

1.It will make me learn how to analyze the financial statements i.e. P&L account and Balance sheet of LG 2.Help me to understand the meaning and need of Balance Sheet, P&L and Cash Flow account.
4.What are the key questions the project attempts to answer?
1. Examine the shareholder's equity statement. Has the company issued new shares, or bought some back? Has the retained earnings account been growing or shrinking? Why? Are there signals about the company's longterm strategy here? 2. Examine the income statement. Look for trends over time. Calculate and graph the growth of the following entries over the past several years. Revenues (sales) Net income (profit, earnings 3. Examine the balance sheet. Look for large changes in the overall components of the company's assets, liabilities or equity. For example, have fixed assets grown rapidly in one or two years, due to acquisitions or new facilities? Has the proportion of debt grown rapidly, to reflect a new financing strategy? 4. Examine the cash flow statement, which gives information about the cash inflows and outflows from operations, financing, and investing 5. Calculate financial ratios in each of the following categories, for each year. A summary of some useful ratios appears at the end of this document. Liquidity ratios Leverage (or debt) ratios Profitability ratios Efficiency ratios Value ratios

6. Graph the ratios over time, to find the trends in the ratios from year to year. Are
they going up or down? Is that favorable or unfavorable?

5.Research methodology: Research design: Descriptive research Nature of data: Secondary data. Sources of data: 1.Companys balance sheet 2. Profit and loss a/c. 3. Annual Report. Tools: Excel, Ratio Analysis

Faculty Comments and Signature: