INTRODUCTION ABOUT THEPROJECT Financeis the life blood and nerve of any Business organization. Finance isthe procurement of funds and effective utilization of funds. It also deals withprofit that adequately compensate for the cost & risks become by thebusiness. This study has undertaken with some predetermined objectives likeevaluate the general financial of business to measure the financial solvency ofthe company, to use financial j ratios for forecasting and planning tofacilitate decision making, to take corrective actions as the financial statesduring ratio analysis, to understand and interpret the ratio to communicatefinancial rations, to the uses accounts a study of ratio analysis has its ownsignificance in the day to day operation of the business. Finance isregarded as the life blood of a business enterprise.
Finance is one of thebasic foundations of all kinds of economic activities. It is the master keywhich provides access to- al the sources of being ; employed in manufacturingand merchandising activities, efficient management of every business enterpriseis very closely linked with efficient management of its finance. In general,finance may be defined as the provisions of money at the time.
It is wanted.However, as a management function it has a special meaning. Finance functionmay be defined as the procurement of funds and their effective utilization.Some of the authoritative definitions are as follows “Businessfinance is that business activity which is concerned with the acquisition andconservation of capital funds in meeting financial needs and overall objectivesof a business enterprise” The studyhas undertaken with some predetermined objectives like valuate the generalefficiency of business, to measure the financial solvency of the company, touse financial ratio for forecasting and planning, to facilitate decisionmaking, to take corrective actions, asses the financial using ratio analysis,to understand and interpret the ratio, to communicate financial ratio to theuses accounts. 1.A STUDY ON RATIO ANALYSIS AT RAYENSTEEL Pvt. Ltd.
, BALLARI This project report makes an analysis of financial health ofcompany, through tools like ratio analysis INTRODUCTION The Indian Steel industry isalmost 100 years old now. Till 1990, the Indian steel industry operated under aregulated environment with insulated markets and large scale capacitiesreserved for the public sector. Production and prices were determined andregulated by the Government, while SAIL and Tata Steel were the main producers,the latter being the only private player. In 1990, the Indian steel Industryhad a production capacity of 23 MT. 1992 saw the onset of liberalization andthe Indian economy was opened to the world.
Indian steel sector also witnessedthe entry of several domestic private players and large private investmentsflowed into the sector to add fresh capacities. The last decade saw the Indiansteel industry integrating with the global economy and evolving considerably toadopt world-class production technology to produce high quality steel. Thetotal investment in the Indian steel since 1990 is over Rs 19,000 crores mostlyin plant equipment’s, which have been installed after 1990. The steel industryalso went through a turbulent phase between 1997 and 2001 when there was adownturn in the global steel industry.
The progress of the industry in terms ofcapacity additions, production, consumption, exports and profitabilityplateaued off during this phase. But the industry weathered the storm only torecover in 2002 and is beginning to get back on its feet given the strongdomestic economic growth and revival of demand in global markets.With a currentcapacity of 35 MT the Indian Steel Industry is today the 8th largest producerof steel in the world.
Today, India produces international standard steel ofalmost all grades/varieties and has been a net exporter for the past few years,underlining the growing acceptability of its products in the global market. Steel is a highly capitalintensive industry and cyclical in nature. Its growth is intertwined with thegrowth of the economy at large, and in particular the steel 2.A STUDY ON RATIO ANALYSIS AT RAYENSTEEL Pvt. Ltd.
, BALLARI consumingindustries such as manufacturing, housing and infrastructure. Steel, given itsbackward and forward linkages, has a large multiplier effect. OBJECTIVE OF THE STUDY:v Toknown the liquidity position of the company. v Tounderstand different components used in ratio analysis. v Toanalyze the behaviour of financial performance and position indication’ of thecompany.
v Toanalyze the amount of ratio analysis. v Toidentify the major factors which cause fluctuations in ratio analysis. SCOPE OF STUDY: v Thescope of the study is restricted to only to the data that has been collectedand analyzed for 3 years from 2012-13, 2014-15 and 2015-16. v Theannual data consisting of profit & loss account and balance sheet areanalyzed and interpreted to arrive to the ratio analysis. v Thisstudy is essentially focused on the financial performance of the organization.It is used to get a clean picture of the organization performance over theyears of the study period 3 years and intended to bring out certain suggestionsat the end.
I No doubt financial statement contains a large number ofaccounting data or figure but the ! accounting or financial figure as found inthe financial statement (i.e. the absolute figure as found in the financialstatement) are not more than group of accounting figure they do not conveyanything by themselves to a layman. However they are analyzed and interpreted METHODOLOGY: DATA COLLECTION METHOD: Tocollect data for project “RATIO ANALYSIS” at RAYEN STEEL LTD used both primaryand secondary data collection methods.
3.A STUDY ON RATIO ANALYSIS AT RAYENSTEEL Pvt. Ltd.
, BALLARI Data collectionmethods Primary data Secondary data PRIMARY DATA: Thedata are collected from the discussion with concerned executive managers ofRAYEN. Primary data are that, which are collected freshly and for first andthus happens to be original in character Themethods of primary data collection are:Ø Observationmethod Ø Personalinterview. SECONDARY DATA: Thedata have been collected from someone else and which have already been passedthrough statistical process. The data is collected from company profile andwith the help of books . The secondary data sources are:ü Recordof the company. ü Annualreports.
ü Newslettersand text books. ü Website: WWW.RAYEN steelltd .
in LIMITATIONS:v Thepresent study focuses only on the ratio analysis of the company. v Thestudy is limited to the analysis of ratio for 3 years. v Alsothe study was done on individual company and hence no comparison was madebetween the firms in the same county. : v Itwas not possible to make a competitive analysis due to inability in gettinginformation and data relating to other companies in traders companies The collected data will be analyzed with the help ofparametric techniques such as trend analysis. Wherever necessary tables charts,graphs, diagrams are used