COMPARATIVE ANALYSIS OF FINANCIAL STATEMENT OF SAIL WITH

OTHER STEEL COMPANIES IN INDIA

PROJECT REPORT
MAY 2010  JULY2010
Submitted in partial fulfillment of the requirements for the award of
two year full time, Post Graduate Diploma Management
In
Finance & Control
By
Kumar Mayank
(Institute of Management & Information Sciences Bhubaneswar)
Under the guidance of
Prof. S.S.Ahmed
P.S PAL
Assistant Professor (finance)
AGM(Finance)
Institute ofManagement & Informationscience
SteelAuthority Of India Limited
Bhubaneswar
.
Ranchi.
Institute of Management & Information Science
Swagat Vihar
Bhubaneswar Orissa ± 751002

Declaration
I hereby declare that the project entitled ³Financial Analysis´ is submitted in partial fulfillment of my
PGDM (FC) ³2009-2011´ was carried out with sincere intention of benefiting the organization. The
project duration was from 10th May 2010 to 3rd July 2010. To the best of my knowledge it is an
original piece of work done by me and it has neither been submitted to any other organization nor
published at anywhere before.
Signature
Name: Kumar Mayank
Date:3rd July 2010
Place: Steel Authority of India Limited (Ranchi)

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 Page | 4
ABSTRACT
The project on comparison of financialstatement of SAILwith othersteelsectors in INDIA
has been a very good experience. Every manufacturing company faces the problem of
FinancialManagement in their day to day process es.An organizations cost can be reduced
and the profit can be increased only if it is able to manage the financial position of its firm.
At the same time the company can provide cus tomer satisfaction and hence can improve
their overall productivity and profitability.
This project is asincere effort tostudy and analyze
theFinancialManagement of SAIL. The projectworkwas divided into two phases. The
firstphasewas focused on making a financial overview of the company by conducting a Time
seriesanalysis of SAIL for the years 2003 to 2009 and the second phase was conducted on a
Comparative analysis of SAILwith its domestic competitors  TATA, ISPAT, JINDAL & ESSAR
for the year 2009 taking Balancesheet, Profit & Loss account and ratios s howing a
comparative analysis between these firms w ith SAIL.
The internship is a bridge between the institute and the
organization. This made me to be involved in a project that helped me to employ my
theoretical knowledge about how theAnalysis of Financial Statement is done by the firm.
And in the proce ss I could contribute substantially to the organizationsgrowth.
The experience that I gathered over the past two months has
certainly provided the orientation, w hich I believewill help me inshoulder ing any
responsibility in future.
 Page | 5
TABLE OF CONTENTS
1.ABOUT THE COMPANY
6-11
2.INTRODUCTION TO CET SAIL
12-19
3.INTRODUCTION TO THE STUDY
20-22
4. LITERATURE REVIEW
23-35
5.DATA ANALYSIS AND INTERPRETATION
36-66
6.COMPETITOR ANALYSIS
67-70
7. RECOMMENDATION AND SUGGESTIONS
71
8.CONCLUSION
72
9.BIBLIOGRAPHY
73
 Page | 6
1. ABOUT THE COMPANY
Company Profile

Established in January 24, 1973 with an authorized capital of Rs. 2000 crores, Steel Authorityof India

Limited (SAIL) is the leading steel-making company in India. SAIL is a fullyintegrated iron and steel maker

company, producing both basic and special steels fordomestic construction, engineering, power, railway,

automotive and defense industries and italso produce steel for sale in export markets.

Steel Authority of India Limited is ranked amongst the top ten companies in public sectorcompanies in

India in terms of its turnover. SAIL produces iron and steel at five integratedplants and three special steel

plants, located principally in the eastern and central regions ofIndia and situated close to domestic

sources of raw materials, including the Company's ironore, limestone and dolomite mines.

SAIL have a Central Marketing Organization (CMO) whose job is to transact businessthrough its network

of 37 Branch Sales Offices spread across the four regions, 25Departmental Warehouses, 42

Consignment Agents and 27 Customer Contact Offices allover India. CMO¶s domestic marketing job is to

meet the demands of the smallest customersin the remotest corners of the country. SAIL has a

Consultancy Division (SAILCON) locatedat New Delhi whose job is to offer services and consultancy to

clients world-wide. SAIL hasa well-equipped Research and Development Centre for Iron and Steel

(RDCIS) at Ranchiwhich helps the industries of SAIL to produce quality steel and it also give ideas to

developnew technologies for the steel industry. SAIL has its own in-house Centre for Engineeringand

Technology (CET), Management Training Institute (MTI) and Safety Organization atRanchi. SAIL captive

mines are control by the Raw Materials Division in Kolkata.Almostall of the plants and major units of SAIL

are ISO Certified.

 Page | 7
Sail Today

SAIL today is one of the largest industrial entities in India. Its strength has been thediversified range of

quality steel products catering to the domestic, as well as the exportmarkets and a large pool of technical

and professional expertise. Today, the accent in SAIL isto continuously adapt to the competitive

businessenvironment and excel as a businessorganization, both within and outside India.

Type of O rganization:

Steel Authority of India' - a Government of India Enterprise and one of the largest and profitmaking public

sector steel products manufacturing company. Steel Authority of Indiaproduces for both basic and special

steels for construction, engineering, power, railway,automotive and defense industries and caters to

Indian and International markets. SteelAuthority of India has five steel plants, one subsidiary, three

special steel plants, multimarketing units at all regions and nine other specialized units to support growth

anddevelopment of the Steel Industry in India. It produces Blooms, Billets, Slabs, Crane Rails,Bars, Rods

& Re-bars, Wire Rods, HR Coils, Sheets, Plates, CR Coils & Sheets, GC Sheets,GP Sheets and Coils,

Tinplates, Electrical Steel, Tubular Products, Pipes, Railway Products,Rails, Wheels, Axles, Wheel Sets.
Activities: Steel Authority of India production lines are ±
y
Hot Rolled Coils, Sheets
y
Cold Rolled Products.
y
Bars and Rods.
y
Semi-Finished Products.
y
Railway Products.
y
Plates.
 Page | 8
Moreover, Steel Authority of India offers technological services in the following
Domains ±
y
Know-how transfer of technologies developed by its R&D wing.
y
Consultancy services.
y
Specialized testing services.
y
Contract research.
y
Training.
Integrated Steel Plants
y
Bhilai Steel Plant (BSP) in Chhattisgarh
y
Durgapur Steel Plant (DSP) in West Bengal
y
Rourkela Steel Plant (RSP) in Orissa
y
Bokaro Steel Plant (BSL) in Jharkhand
y
IISCO Steel Plant (ISP) in West Bengal
Special Steel Plants
y
Alloy Steels P in West Bengalplants (ASP)
y
Salem Steel Plant (SSP) in Tamil Nadu
y
Visvesvaraya Iron and Steel Plant (VISL) in Karnataka
Subsidiary
y
Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

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