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Independent Director using Ai to read balance sheet and annual report explained in Hindi

For private companies you have to get their balance sheet from the MCA portal.

Keywords: Independent Director, Reading balance sheet using Ai, reading annual report using Ai

PROMPT
I am an Independent Director reviewing ITC Limited’s annual report. Give me a summary of its balance sheet: what it owns, what it owes, what belongs to
shareholders. Also, how things have changed since last year.

PROMPT
Perform a detailed liquidity analysis of the company's balance sheet from an
Independent Director's oversight perspective. I need a thorough assessment of the company's ability to meet short-term obligations and survive financial stress. Provide
specific numbers and calculations.

1. CURRENT ASSETS COMPOSITION AND QUALITY:
2. RECEIVABLES ANALYSIS:
3. INVENTORY ANALYSIS:
4. HOW TO USE AI TO READ BALANCE SHEETS & ANNUAL REPORTS?
5. CURRENT LIABILITIES STRUCTURE:
6. LIQUIDITY RATIOS CALCULATION:
7. SHORT-TERM DEBT ANALYSIS:
8. CASH FLOW CORRELATION:
9. STRESS TESTING AND SCENARIO ANALYSIS:

Calculate months of operating expenses covered by current cash
What happens if:

Revenue drops 20%, 30%, 40%?
Receivables collection delays by 30, 60, 90 days?
Bank lines are not renewed?
Trade credit terms tighten by 30 days?

Calculate the liquidity buffer/deficit under each scenario
Identify the "point of no return" metrics

9. RED FLAGS AND WARNING SIGNS:
10. CONTINGENT LIQUIDITY RISKS:
11. LIQUIDITY MANAGEMENT ASSESSMENT:
12. BOARD-LEVEL CONCERNS AND QUESTIONS:
Based on the analysis, provide:

Overall liquidity risk rating: Strong/Adequate/Weak/Critical
Top 3 immediate liquidity concerns
Specific questions for management regarding:

Cash management policies
Credit control effectiveness
Inventory management
Short-term funding strategy
Contingency funding plans

Recommended board actions if liquidity is concerning
Early warning indicators to monitor quarterly

13. PEER COMPARISON:

How do our liquidity metrics compare with:

Industry leaders
Direct competitors
Companies with similar credit ratings

Best practices we should adopt
Areas where we're underperforming

14. FORWARD-LOOKING ASSESSMENT:

Based on current trends, project liquidity position for next 4 quarters
Identify upcoming pressure points
Assess refinancing risk for maturing debt
Consider impact of announced capex plans
Evaluate seasonal working capital requirements

Provide all calculations with actual numbers from the balance sheet. Highlight any data limitations or missing information that prevents complete analysis. End with a clear verdict on whether the company can meet its obligations for the next 12 months without requiring emergency funding.

PROMPT
Analyze the company's debt structure from the balance sheet.
I need to understand:

1. DEBT BREAKDOWN:

Total debt (short-term + long-term) in crores
What percentage of total assets is financed by debt?
Break down the types of debt (bank loans, bonds, NCDs, ECBs)
Interest rates on different debts if mentioned in notes

2. KEY RATIOS:

Debt-to-Equity ratio (Total Debt ÷ Shareholders' Equity)
Debt-to-Assets ratio (Total Debt ÷ Total Assets)
Net Debt to Equity (Total Debt - Cash) ÷ Equity

3. INDUSTRY COMPARISON:

Is this leverage normal for the industry?
How do we compare with the top 3 competitors?

4. SUSTAINABILITY CHECK:

Interest coverage ratio from P&L (EBIT ÷ Interest Expense)
Can operating profits cover interest payments?

5. MATURITY ANALYSIS:

How much debt matures in the next 12 months?
Can we refinance or must we repay from cash?
Tell me if this leverage level is risky, and what questions I should ask management.

PROMPT
Perform a forensic analysis of the balance sheet. I'm an Independent Director looking
for red flags:

1. YEAR-ON-YEAR CHANGES:

List items that changed more than 25% from last year
Explain what could cause such changes
Are the explanations in MD&A convincing?

2. SUSPICIOUS ITEMS:

Intangible assets as % of total assets (and breakdown)
"Other" assets or liabilities that are significant
Related party transactions in the balance sheet
Loans and advances breakdown (especially to related parties)

3. QUALITY CONCERNS:

Receivables aging (how old are they?)
Inventory composition (raw vs WIP vs finished)
Investments classification (why held?)
Contingent liabilities size vs net worth

4. ACCOUNTING GAMES:

Any reclassifications year-on-year?
Change in accounting policies impact?
Provisions adequacy (compare with peers)
Off-balance sheet items mentioned in notes?

5. WARNING PATTERNS:

Cash declining while profits growing?
Debt rising while capex falling?
Working capital stretching?
Asset sales to show cash?
Based on these red flags, give me:
Top 5 concerns ranked by severity
Specific questions to ask management
What additional information I should demand