Problem StatementBusinesses or companies can fall prey to default if they are not able to keep up their debt obligations. Defaults will lead to a lower credit rating for the company which in turn...

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Hi team I need a clear step by step ipynb file along with the Word Document containing the interferencev for each and every questions along with the output attached.













You can refer the refernce files to prepare the ipynb and word doc (business report)






Problem Statement Businesses or companies can fall prey to default if they are not able to keep up their debt obligations. Defaults will lead to a lower credit rating for the company which in turn reduces its chances of getting credit in the future and may have to pay higher interests on existing debts as well as any new obligations. From an investor's point of view, he would want to invest in a company if it is capable of handling its financial obligations, can grow quickly, and is able to manage the growth scale. A balance sheet is a financial statement of a company that provides a snapshot of what a company owns, owes, and the amount invested by the shareholders. Thus, it is an important tool that helps evaluate the performance of a business. Data that is available includes information from the financial statement of the companies for the previous year (2015). Also, information about the Networth of the company in the following year (2016) is provided which can be used to drive the labeled field. Explanation of data fields available in Data Dictionary, 'Credit Default Data Dictionary.xlsx' Hints : Dependent variable - We need to create a default variable that should take the value of 1 when net worth next year is negative & 0 when net worth next year is positive. Test Train Split - Split the data into Train and Test dataset in a ratio of 67:33 and use random state =42. Model Building is to be done on Train Dataset and Model Validation is to be done on Test Dataset. Market Risk The dataset contains 6 years of information (weekly stock information) on the stock prices of 10 different Indian Stocks. Calculate the mean and standard deviation on the stock returns and share insights. You are expected to do the Market Risk Analysis using Python. Please note the following: • Please avoid sharing code in the business report. There might be a deduction if codes are shared in the report • Please ensure all the graphs displayed in the report are clearly visible • The proper interpretation should be provided wherever required • You have to submit 2 files : 1. Business Report: It should include a detailed explanation of the approach used, insights, inferences, all outputs of codes like graphs, tables, etc. Your report should not be filled with codes. You will be evaluated based on the business report only. Hence please ensure that your business report is detailed and includes everything apart from code. 2. Jupyter Notebook file: This is a must and will be used for reference while evaluating. • Any assignment found copied/ plagiarized with other submissions will not be graded and marked as zero. • Please ensure timely submission as a post-deadline assignment will not be accepted. Scoring guide (Rubric) - FRA Rublic Criteria Points 1.1 Outlier Treatment 6 1.2 Missing Value Treatment 3.5 1.3 Transform Target variable into 0 and 1 2 1.4 Univariate (4 marks) & Bivariate ( 6marks) analysis with proper interpretation. (You may choose to include only those variables which were significant in the model building) 10 1.5 Train Test Split 2 1.6 Build Logistic Regression Model (using statsmodel library) on most important variables on Train Dataset and choose the optimum cutoff. Also showcase your model building approach 10 1.7 Validate the Model on Test Dataset and state the performance matrices. Also state interpretation from the model 7 1.8 Build a Random Forest Model on Train Dataset. Also showcase your model building approach 4 1.9 Validate the Random Forest Model on test Dataset and state the performance matrices. Also state interpretation from the model 3 1.10 Build a LDA Model on Train Dataset. Also showcase your model building approach 4 1.11 Validate the LDA Model on test Dataset and state the performance matrices. Also state interpretation from the model 3 1.12 Compare the performances of Logistics, Radom Forest and LDA models (include ROC Curve) 4 1.13 State Recommendations from the above models 4 2.1 Draw Stock Price Graph(Stock Price vs Time) for any 2 given stocks with inference 4 2.2 Calculate Returns for all stocks with inference 3 2.3 Calculate Stock Means and Standard Deviation for all stocks with inference 3 2.4 Draw a plot of Stock Means vs Standard Deviation and state your inference 4.5 2.5 Conclusion and Recommendations 4 Quality of Business report(Please refer to the Evaluation Guidelines for Business report checklist. Marks in this criterion are at the moderator's discretion) 9 Sheet2 Co_CodeCo_NameNetworth Next YearEquity Paid UpNetworthCapital EmployedTotal DebtGross Block Net Working Capital Current Assets Current Liabilities and Provisions Total Assets/Liabilities Gross SalesNet SalesOther IncomeValue Of OutputCost of ProductionSelling CostPBIDTPBDTPBITPBTPATAdjusted PATCPRevenue earnings in forexRevenue expenses in forexCapital expenses in forexBook Value (Unit Curr)Book Value (Adj.) (Unit Curr)Market CapitalisationCEPS (annualised) (Unit Curr)Cash Flow From Operating ActivitiesCash Flow From Investing ActivitiesCash Flow From Financing ActivitiesROG-Net Worth (%)ROG-Capital Employed (%)ROG-Gross Block (%)ROG-Gross Sales (%)ROG-Net Sales (%)ROG-Cost of Production (%)ROG-Total Assets (%)ROG-PBIDT (%)ROG-PBDT (%)ROG-PBIT (%)ROG-PBT (%)ROG-PAT (%)ROG-CP (%)ROG-Revenue earnings in forex (%)ROG-Revenue expenses in forex (%)ROG-Market Capitalisation (%)Current Ratio[Latest]Fixed Assets Ratio[Latest]Inventory Ratio[Latest]Debtors Ratio[Latest]Total Asset Turnover Ratio[Latest]Interest Cover Ratio[Latest]PBIDTM (%)[Latest]PBITM (%)[Latest]PBDTM (%)[Latest]CPM (%)[Latest]APATM (%)[Latest]Debtors Velocity (Days)Creditors Velocity (Days)Inventory Velocity (Days)Value of Output/Total AssetsValue of Output/Gross Block 16974Hind.Cables-8021.6419.36-7,027.48-1,007.245,936.03474.3-1,076.3440.51,116.85109.6007.6-0.07137.670-179.06-926.52-185.53-932.99-932.99-937.85-926.52000-167.58-167.580-22.09-102.471.4692.58-15.31-20.76-9.75001.38-25.755.23-19.294.43-19.33-19.33-19.290000.020000-0.200000004500 21214Tata Tele. Mah.-3986.191,954.93-2,968.084,458.207,410.189,070.86-1,098.88486.861,585.746,043.942,892.732,892.7346.272,900.712,572.4640.51646.46-4.3235.53-615.25-615.25-617.14-4.326.35143.42141.17-15.18-15.181,544.39-0.02635.91-785176.93-26.156.33.175.925.9213.166.665.24-108.77614.89-9.85-9.85-108.771.93346.610.080.25804.4410.350.3-0.84-10.3-39.74-57.74-57.74-87.182910120.310.24 14852ABG Shipyard-3192.5853.84506.867,714.686,944.541,281.544,496.259,097.644,601.3912,316.07392.13392.139.55301.16408.5154.83-281.92-1,086.71-381.1-1,185.89-897.7-873.39-798.52086.362.2794.1494.141,220.81-148.31-873.4-458.271,187.51-61.8615.66-2.07-75.87-75.87-69.93-0.78-169.69-431.68-221.85-300.41-350.43-642.67-100-81.21-6.311.060.030.010.420-2.21-5,279.14-5,516.98-7,780.25-7,723.67-7,961.51975580-0.03-0.26 2439GTL-3054.51157.3-623.492,353.882,326.051,033.69-2,612.421,034.123,646.546,000.421,354.391,354.39223.851,350.141,326.993.34-213.01-677.57-336.73-801.29-801.29-770.18-677.570.8928.880-39.64-39.64194.27-43.08324.4717.31-412.55-450.67-40.84-1.88.338.3316.59-10.12-203.84-102.72-455.28-80.23-70.57-88.52-52.91-33.85-13.940.095.08411.159.260-0.16-3.33-7.21-48.13-47.7-51.58936320.241.9 23505Bharati Defence-2967.3650.3-1,070.834,675.335,740.901,084.201,836.234,685.812,849.587,524.9138.7238.729.8238.72186.291.97-647.86-944.42-710.13-1,006.69-864.58-327.77-802.31015.620-212.89-212.89113.68-159.5-191.5461.34143.65-559.83-11.760.34-80.61-80.61-48.8-5.81-40.073.28-38.721.87-2.59-1.13-100-91.17-12.910.50.050.021.280.01-0.73-295.55-400.55-845.88379.79274.793,88734600.010.05 2484Usha Ispat-2519.4179.35-2,519.39-1,824.75694.640.02-1,843.7401,843.7418.990000000000000000-140.47-140.470000000000-10001001001001001001000000000000000000000 23633Hanung Toys-2125.0530.82-1,031.571,536.082,567.65949.98804.82834.8630.041,566.12136.09135.790.63-119.1896.341.66-933.14-1,204.87-995.5-1,267.23-1,267.23-1,218.21-1,204.8727.269.870-337.17-337.1758.26-390.94-10.444.9410.32-556.33-39.08-0.66-72.72-72.768.08-39.07-157.51-103.19-144.49-98.69-155.6-167.17-87.06-97.31-11.430.030.010.270.360-1,230.43-395.87-987.73-396.67-672.36-1,264.22456123920-0.01 3226K S Oils-2100.5645.92-1,945.45979.132,664.04920.67263.95705.76441.811,420.9472.4772.466.1770.08115.920.45-168.24-174.47-221.67-227.9-229.87-59.39-176.44000-42.37-42.3739.03-3.84-2.43177.38-179.09-13.3-29.21-28.41-92.82-92.82-90.29-21.7486.6587.8983.4184.9884.7887.7-100-100-30.890.410.030.320.190.03-65.16-447.24-596.97-456.4-461.06-610.8828622799-0.02-0.03 1541Quadrant Tele.-1695.7561.23-1,560.94-613.79597.821,700.27-1,121.96117.671,239.63625.85520.79520.793.62520.7966937.87-74.05-100.89-213.05-239.89-239.89-239.74-100.8901.2115.46-25.49-25.49204.49-1.65144.9-123.73-19.92-18.2-62.695.9528.2728.2715.72-0.4430.8524.928.98.148.1424.9208.0421.450.120.29189.1714.010-3.731.9-20.43-3.58-3.58-25.913414520.920.31 2334ITI-1677.18288-1,947.8586.351,220.831,329.82-390.532,536.782,927.313,013.66620.95574.33250.78572.27772.36.81-124.56-281.81-139.88-297.13-297.13-298.03-281.81010.410.09-74.3-74.3588.96-9.79-148.56-10.06397.51-4.97127.470.59-19.69-25.01-16.879.7239.1613.8336.9813.6913.6913.830-88.3727.410.651.1410.260.870.591.9219.2318.189.769.768.711,112913620.541.16 430Parasram. Synth-1403.766.28-1,400.79-220.491,158.34399.8-611.8422.29634.12413.6244.544.35-3.8844.444.541.22-4.99-5.05-6.9-6.96-6.74-2.6-4.8300.10-211.35-211.350-0.73-10.9611.02-0.06-0.48-3.15-1.97-2.09-2.010.52-2.72-505.69-520.83-1,816.67-1,684.62-1,882.35-486.402500.010.0882.781.850-384-9.09-11.63-9.12-9.36-11.915942750.080.08 4169Electrotherm(I)-1243.3311.48-1,025.022,057.863,063.302,141.72565.64868.34302.72,360.561,950.801,829.214.051,703.212,086.3139.78-288.84-295.21-435.02-441.39-440.51-440.75-294.33126.29235.590-892.87-892.8725.08-256.3972.13-6.15-49.97-75.15-18.970.43178.63177.21139.06-17.15-15.58-17.24-36.24-37.42-37.16-16.953.86298.924.530.618.25.951.22-9.654.83-1.834.644.64-2.037032660.820.96 5926ICSA (India)-1138.489.63-1,117.6839.831,157.04236.5-147.75209.05356.8396.6323.5423.540.11-3.27135.120.07-331.3-331.45-342.93-343.08-343.08-343.08-331.45000-232.18-232.1815.36-68.84-0.760.111.67-44.29-89.350-58.9-58.927.4-48.5645.2745.4744.544.744.745.4700-55.320.140000-66.38000004,22518122000 3367SpiceJet-1038.86599.45-1,085.93602.191,477.342,113.77-1,456.25548.142,004.402,606.595,243.075,243.07158.445,243.075,487.15199.46-395.39-560.42-522.02-687.05-687.05-746.52-560.42265.212,122.494.82-26.94-26.941,300.81-9.35-410.91303.84125.6-9.2-30.78-2.71-16.83-16.83-18.7-11.5544.7534.4539.5731.5231.5234.45-13.99-14.5271.740.263.2680.65117.778.647.5111.238.0310.1610.166.96106432.092.97 2302Hind.Organ.Chem.-981.2167.27-804.16-32.81402.03639.79-197.77131.31329.07296.26168.31150.138.45152.02269.830.21-155.42-206.69-164.22-215.49-215.49-176.68-206.6900.340-119.54-119.5494.71-30.73-112.554.6185.33-38.65-151.85-4.16-29.04-28.9-19.02-14.62-33-29.6-22.34-21.85-21.85-29.60-69.0918.390.150.243.527.920-1.4-78.94-83.66-138.86-138.85-143.5734160810.520.24 4397Ricoh India-949.1439.77168.6885.37701.52144.13766.71,176.47409.771,295.141,637.821,637.8216.81,627.371,373.2142.48160.7171.93139.2750.4933.933.1355.3465.18387.024.642.3942.392,198.0913.71-222.41-14.26265.0620.6174.4531.0656.1856.1849.0850.5106.0655.46125.2167.6396.7565.79-20.96-17.33318.870.6911.182.951.980.94-1.1-12.91-14.35-25.92-25.38-26.8210984540.759.66 24936Zylog Systems-854.4229.5-115.42807.85919.71908.28300.83501.39200.561,008.41313.08313.08-448.72313.08451.9716.05-473.73-478.28-634.69-639.24-628.41-159.15-467.4514.740.040-19.57-19.5724.9-79.23-7.86-2.35-1.85-122.5-43.64-12.21-71.23-71.23-62.94-38.06-191.04-148.66-60.99-50.83-43.5-126.43-94.71-99.98-60.930.280.15961.453.430.32-89.83-26.71-33.51-27.08-18.16-24.963071400.160.14 24619Jai Balaji Inds.-838.2873.78-180.812,799.732,980.542,490.95789.422,181.381,391.964,191.691,589.551,477.7434.721,4611,533.9811.4211.04-363.96-115.12-490.12-386.37-383.11-260.212.83116.511.54-24.51-24.5184.63-35.27-61.6532.2542.75-183.74-0.270.25-25.3-24.92-22.01-0.75-79.3-28.6-39.74-17.05-21.14-42.01-60.53-58.6422.720.780.683.752.450.67-4.31-3.86-10.48-6.29-6.29-12.911782031270.40.66 6927Mackinnon Macken-834.090.25-833.53-7.54825.611.24-8.456.114.567.020.150.150.070.150.360-1.1-1.11-1.13-1.14-1.14-1.07-1.110.0100-3,371.57-33,715.700-4.44-0.550.07-0.01-0.14-17.2600012.50.57-86.44-88.14-85.25-86.89-86.89-88.140000.410.1400.030-60-347.06-358.82-352.94-347.06-358.8213,0439,44900.020.14 27371Everonn Educat.-814.4824.05132.58917.03781.62320.07570.34621.1950.85967.8828.3328.330.2928.3358.371.82-10.79-51.62-43.56-84.39-84.39-78.05-51.620.260.11055.1255.1253.88-21.469.79-0.11-20.56-55.18-13.980.01-34.47-34.47-23.07-14.0881.8852.6358.845.6130.1530.83-40.91-72.5-38.570.560.0600.20.07-0.72-111.29-161.98-337.57-2,396.03-2,446.712,38518700.030.06 351LML-781.7381.98-703.37-465.8103.93528.48-528.76140.95669.71203.91209.02203.773.56187.75200.2612.27-25.33-68.48-37.94-81.09-81.09-81.09-68.48144.5711.961.13-85.79-85.7953.78-8.357.87-0.93-0.61-13.96-22.080.28-23.16-22.23-24.12-16.89-27.09-13.19-17.61-11.34-11.34-13.19-17.28-47.3826.90.170.31.7277.420-0.65-13.5-19.41-43.59-43.59-49.4962861930.730.3 1083Samtel Color-687.3785.5-645.08-150.04443.74483.43-280.385.94366.24216.2003.17-3.5724.370.09-12.4-22.93-22.84-33.37-33.37-33.39-22.93000-78.96-78.966.41-2.6840.740.05-40.79-5.45-27.09-0.05003.35-5.9348.6862.4733.9953.3553.3562.4700-33.090.110000-2.930000002,37032200 27313Parabolic Drugs-681.2661.89-196.07763.88957.49485.98264.63450.89186.26950.14242.93231.781.24184.88365.776.92-77.33-176.02-150.3-248.99-379.32-379.27-306.35111.56112.770-35.88-35.8856.69-49.5-3.94-15.8916.87-207.19-25.6622-46.52-47.07-33.62-24.02-12.3-15.86-9.76-13.17-187.95-381.3-45.27-39.52105.850.270.172.961.20.34-9.43-50.59-115.85-62.87-66.59-131.861861444210.050.1 31509Pradip Overseas-666.9748.44-3861,148.031,494.46143.85989.391,120.24130.851,278.88239.84239.844.23245.75277.975.33-308.07-422.5-315.11-429.54-413.5-400.8-406.4640.321.1122.59-79.68-79.689.16-83.91-65.345.7556.19-1,533.88-16.83.06-59.93-59.93-57.18-14.69-29,240-220.85-3,234.50-206.64-143.72-152
Answered 4 days AfterJan 20, 2023

Answer To: Problem StatementBusinesses or companies can fall prey to default if they are not able to keep up...

Mukesh answered on Jan 23 2023
32 Votes
Problem Statement
Businesses or companies can fall prey to default if they are not able to keep up their debt obligations. Defaults will lead to a lower credit rating for the company which in turn reduces its chances of getting credit in the future and may have to pay higher interests on existing debts as well as any new obligations. From an investor's point of view, he would want
to invest in a company if it is capable of handling its financial obligations, can grow quickly, and is able to manage the growth scale.
A balance sheet is a financial statement of a company that provides a snapshot of what a company owns, owes, and the amount invested by the shareholders. Thus, it is an important tool that helps evaluate the performance of a business.
Data that is available includes information from the financial statement of the companies for the previous year (2015). Also, information about the Networth of the company in the following year (2016) is provided which can be used to drive the labeled field.
Explanation of data fields available in Data Dictionary, 'Credit Default Data Dictionary.xlsx'
Hints :
Dependent variable - We need to create a default variable that should take the value of 1 when net worth next year is negative & 0 when net worth next year is positive.
Data Dictionary:
    1
    Co_Code
    Company Code
    2
    Co_Name
    Company Name
    
3
    
Networth Next Year
    Value of a company as on 2016 - Next Year(difference between the value of total assets
and total liabilities)
    
4
    
Equity Paid Up
    Amount that has been received by the company through the issue of shares to the shareholders
    5
    Networth
    Value of a company as on 2015 - Current Year
    
6
    
Capital Employed
    Total amount of capital used for the acquisition of profits by a company
    
7
    
Total Debt
    The sum of money borrowed by the company and is due to be paid
    
8
    
Gross Block
    Total value of all of the assets that a company
owns
    
9
    
Net Working Capital
    The difference between a company's current assets (cash, accounts receivable, inventories of raw materials and finished goods) and its current
liabilities (accounts payable).
    
10
    
Current Assets
    All the assets of a company that are expected to be sold or used as a result of standard business operations over the next year.
    
11
    
Current Liabilities and Provisions
    Short-term financial obligations that are due
within one year (includes amount that is set aside cover a future liability)
    12
    Total Assets/Liabilities
    Ratio of total assets to liabailities of the company
    
13
    
Gross Sales
    The grand total of sale transactions within the accounting period
    
14
    
Net Sales
    Gross sales minus returns, allowances, and
discounts
    
15
    
Other Income
    Income realized from non-business activities (e.g. sale of long term asset)
    
16
    
Value Of Output
    Product of physical output of goods and services produced by company and its market price
    
17
    
Cost of Production
    Costs incurred by a business from manufacturing a product or providing a service
    
18
    
Selling Cost
    Costs which are made to create the demand for the product (advertising expenditures, packaging and styling, salaries, commissions and travelling expenses of sales personnel, and the cost of shops
and showrooms)
    19
    PBIDT
    Profit Before Interest, Depreciation & Taxes
    20
    PBDT
    Profit Before Depreciation and Tax
    21
    PBIT
    Profit before interest and taxes
    22
    PBT
    Profit before tax
    23
    PAT
    Profit After Tax
    
24
    
Adjusted PAT
    Adjusted profit is the best estimate of the true
profit
    
26
    
CP
    Commercial paper , a short-term debt instrument to meet short-term liabilities.
    27
    Revenue earnings in forex
    Revenue earned in foreign currency
    28
    Revenue expenses in forex
    Expenses due to foreign...
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