INTRODUCTION cost & risks become by the business.

INTRODUCTION ABOUT THE
PROJECT

 

Finance
is the life blood and nerve of any Business organization.

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Finance is
the procurement of funds and effective utilization of funds. It also deals with
profit that adequately compensate for the cost & risks become by the
business. This study has undertaken with some predetermined objectives like
evaluate the general financial of business to measure the financial solvency of
the company, to use financial j ratios for forecasting and planning to
facilitate decision making, to take corrective actions as the financial states
during ratio analysis, to understand and interpret the ratio to communicate
financial rations, to the uses accounts a study of ratio analysis has its own
significance in the day to day operation of the business.

 

Finance is
regarded as the life blood of a business enterprise. Finance is one of the
basic foundations of all kinds of economic activities. It is the master key
which provides access to- al the sources of being ; employed in manufacturing
and merchandising activities, efficient management of every business enterprise
is 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 function
may be defined as the procurement of funds and their effective utilization.
Some of the authoritative definitions are as follows

 

“Business
finance is that business activity which is concerned with the acquisition and
conservation of capital funds in meeting financial needs and overall objectives
of a business enterprise”

 

The study
has undertaken with some predetermined objectives like valuate the general
efficiency of business, to measure the financial solvency of the company, to
use financial ratio for forecasting and planning, to facilitate decision
making, to take corrective actions, asses the financial using ratio analysis,
to understand and interpret the ratio, to communicate financial ratio to the
uses accounts.

 

 

 

 

 

1

.

A STUDY ON RATIO ANALYSIS AT RAYEN
STEEL Pvt. Ltd., BALLARI

 

This project report makes an analysis of financial health of
company, through tools like ratio analysis

 

 

INTRODUCTION

 

The Indian Steel industry is
almost 100 years old now. Till 1990, the Indian steel industry operated under a
regulated environment with insulated markets and large scale capacities
reserved for the public sector. Production and prices were determined and
regulated by the Government, while SAIL and Tata Steel were the main producers,
the latter being the only private player. In 1990, the Indian steel Industry
had a production capacity of 23 MT. 1992 saw the onset of liberalization and
the Indian economy was opened to the world. Indian steel sector also witnessed
the entry of several domestic private players and large private investments
flowed into the sector to add fresh capacities.

 

The last decade saw the Indian
steel industry integrating with the global economy and evolving considerably to
adopt world-class production technology to produce high quality steel. The
total investment in the Indian steel since 1990 is over Rs 19,000 crores mostly
in plant equipment’s, which have been installed after 1990. The steel industry
also went through a turbulent phase between 1997 and 2001 when there was a
downturn in the global steel industry. The progress of the industry in terms of
capacity additions, production, consumption, exports and profitability
plateaued off during this phase. But the industry weathered the storm only to
recover in 2002 and is beginning to get back on its feet given the strong
domestic economic growth and revival of demand in global markets.With a current
capacity of 35 MT the Indian Steel Industry is today the 8th largest producer
of steel in the world. Today, India produces international standard steel of
almost 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 capital
intensive industry and cyclical in nature. Its growth is intertwined with the
growth of the economy at large, and in particular the steel

 

 

2

.

A STUDY ON RATIO ANALYSIS AT RAYEN
STEEL Pvt. Ltd., BALLARI

 

consuming
industries such as manufacturing, housing and infrastructure. Steel, given its
backward and forward linkages, has a large multiplier effect.

 

OBJECTIVE OF THE STUDY:

v To
known the liquidity position of the company.

 

v   To
understand different components used in ratio analysis.

 

v To
analyze the behaviour of financial performance and position indication’ of the
company.

 

v To
analyze the amount of ratio analysis.

 

v   To
identify the major factors which cause fluctuations in ratio analysis.

 

 

SCOPE OF STUDY:

 

v  The
scope of the study is restricted to only to the data that has been collected
and analyzed for 3 years from 2012-13, 2014-15 and 2015-16.

 

v  The
annual data consisting of profit & loss account and balance sheet are
analyzed and interpreted to arrive to the ratio analysis.

 

v  This
study is essentially focused on the financial performance of the organization.
It is used to get a clean picture of the organization performance over the
years of the study period 3 years and intended to bring out certain suggestions
at the end. I No doubt financial statement contains a large number of
accounting data or figure but the ! accounting or financial figure as found in
the financial statement (i.e. the absolute figure as found in the financial
statement) are not more than group of accounting figure they do not convey
anything by themselves to a layman. However they are analyzed and interpreted

 

 

 

METHODOLOGY:

 

 

DATA COLLECTION METHOD:

 

To
collect data for project “RATIO ANALYSIS” at RAYEN STEEL LTD used both primary
and secondary data collection methods.

 

 

 

 

 

 

 

 

3

.

A STUDY ON RATIO ANALYSIS AT RAYEN
STEEL Pvt. Ltd., BALLARI

 

 

 

 

 

Data collection

methods

 

 

 

 

Primary data

Secondary

 

data

 

 

 

 

 

PRIMARY DATA:

 

The
data are collected from the discussion with concerned executive managers of
RAYEN. Primary data are that, which are collected freshly and for first and
thus happens to be original in character

 

The
methods of primary data collection are:

Ø   Observation
method

 

Ø   Personal
interview.

 

 

SECONDARY DATA:

 

The
data have been collected from someone else and which have already been passed
through statistical process. The data is collected from company profile and
with the help of books . The secondary data sources are:

ü   Record
of the company.

 

ü   Annual
reports.

 

ü   Newsletters
and text books.

 

ü     
Website: WWW.RAYEN steel
ltd .in

 

LIMITATIONS:

v The
present study focuses only on the ratio analysis of the company.

 

v   The
study is limited to the analysis of ratio for 3 years.

 

v Also
the study was done on individual company and hence no comparison was made
between the firms in the same county. :

 

v It
was not possible to make a competitive analysis due to inability in getting
information and data relating to other companies in traders companies

 

 

The collected data will be analyzed with the help of
parametric techniques such as trend analysis. Wherever necessary tables charts,
graphs, diagrams are used