Professional Documents
Culture Documents
Project Report
On
Financial Analysis
Of
Presented to
Assistant Professor,
S.V.Institute of Management,Kadi
Hemchandracharya North Gujarat University
On
December 7, 2007
By
Ashwin Chaudhary
PREFACE
We got a chance to keep in the real business world for the financial analysis
which helpful for us to know new things about the finance department of the
company that from where the cash in come in the company and where it is go.
Also the report helps us to know how companies prepare their financial
statement. What are their accounting policies and to know about other financial
aspect of the company.
This report highlights the financial position of the company. This report include
analysis of balance sheet, profit &loss account and cash flow statement for the
last five years. It also focuses on firms working capital requirement, sources and
instrument of working capital finance. And also ratios have been calculated to
present a clear picture of the financial profitability and liquidity position of the
company.
This project really enhance our knowledge about industry and I have really
gained a lot of knowledge from this project. I hope this will also help in future.
Firstly, we would like to thank Mr. S.M. Shah, Director of the S.V. Institute of
Management, Kadi, who gave us this valuable opportunity to prepare this report.
Finally, we were thankful to our friends who guide us directly and indirectly in
collecting data and preparing the report as well as imparting their knowledge with
us.
Our this report include the introduction of the company, brief history of the
company, its business and vision of the company. Our this report also include the
analysis of the balance sheet and the profit & loss Account for the same five
years. The cash flow statements are also analyzed. the report contain the ratio
analysi of the company to measure the performance of the company with
interpretation required. The all aspects of the ratios are considered and the
efficiency of the company is also judge by us. Thus the recommendation and
suggestion is also provided for the company to be consider for the better
working. After analyzing all the available financial data of the Steel Authority
Of India Ltd. ,we are able to understand the financial position of the company by
computing various ratios and by making graphical presentations :
If we look at company’s assets side we can see that there is a over all increase in
the assets of the company from 2002 to 2007. In the last two years i.e. in 2006 &
2007 there is a increase of 15%. This shows that company is also purchasing
new assets in this five years. Company is also making a proper provision during
this years. Company is investing in many areas like quoted investments and
mutual fund. Company is also making a proper redord of inventories and
receivables. There is an increasing trend in current ratio, so it is showing a good
working capital of the company. At the end company is also making a proper
system of written off of assets.
From the above data and analysis we can say that company is earning a good
profit in these five years. And the effect of this we can see on the net worth of the
company. Company is also consistent in declaring dividend to the shareholders.
As company’s profit increasing from one year to another there is a proper record
of reserve and surplus. Company is increasing its reserve and surplus its shows
that company is aware about the future and also aware of the contingency. So
we can say that company’s future is good as far as growth is concerned.
Now we can see that company’s borrowing is decreasing year by year. Company
repaid the bank loan and debentures. So the burden of the company is
decreasing. And it is good for company’s reputation.
At the end we can say that in these five years company’s performance is
tremendous as far as growth is concerned. There is a continuous increase in the
profit of the company at a higher rate.
CONTENT
Chapter Particular Page
No.
SAIL
is the leading steel-making company in India. It is a
fully integrated iron and steel maker, producing both
basic and special steels for domestic construction,
engineering, power, railway, automotive and defence industries and for sale in
export markets.
Ranked amongst the top ten public sector companies in India in terms of
turnover, SAIL manufactures and sells a broad range of steel products, including
hot and cold rolled sheets and coils, galvanised sheets, electrical sheets,
structurals, railway products, plates, bars and rods, stainless steel and other alloy
steels. SAIL produces iron and steel at five integrated plants and three special
steel plants, located principally in the eastern and central regions of India and
situated close to domestic sources of raw materials, including the Company's iron
ore, limestone and dolomite mines. The company has the distinction of being
India’s largest producer of iron ore and of having the country’s second largest
mines network. This gives SAIL a competitive edge in terms of captive availability
of iron ore, limestone, and dolomite which are input for steel making.
SAIL's wide range of long and flat steel products are much in demand in the
domestic as well as the international market. This vital responsibility is carried out
by SAIL's own Central Marketing Organisation (CMO) and the International Trade
Division. CMO encompasses a wide network of 34 branch offices and 54
stockyards located in major cities and towns throughout India.
THE PRECURSOR
SAIL traces its origin to the formative years of an emerging nation - India. After
independence the builders of modern India worked with a vision - to lay the
infrastructure for rapid industrialisaton of the country. The steel sector was to
propel the economic growth. Hindustan Steel Private Limited was set up on
January 19, 1954. The President of India held the shares of the company on
behalf of the people of India
Hindustan Steel (HSL) was initially designed to manage only one plant that was
coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary
work was done by the Iron and Steel Ministry. From April 1957, the supervision
and control of these two steel plants were also transferred to Hindustan Steel.
The registered office was originally in New Delhi. It moved to Calcutta in July
1956 and ultimately to Ranchi in December 1959.
A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to
construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and
Rourkela Steel Plants were completed by the end of December 1961. The 1 MT
phase of Durgapur Steel Plant was completed in January 1962 after
commissioning of the Wheel and Axle plant. The crude steel production of HSL
went up from .158 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel
Plant was completed in September 1967 after commissioning of the Wire Rod
Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was
commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant
was completed in August 1969 after commissioning of the Furnace in SMS.
Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and
1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised
to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.
HOLDING COMPANY
The Ministry of Steel and Mines drafted a policy statement to evolve a new model
for managing industry. The policy statement was presented to the Parliament on
December 2, 1972. On this basis the concept of creating a holding company to
manage inputs and outputs under one umbrella was mooted. This led to the
formation of Steel Authority of India Ltd. The company, incorporated on January
24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for
managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and
Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was
restructured as an operating company.
Since its inception, SAIL has been instrumental in laying a sound infrastructure
for the industrial development of the country. Besides, it has immensely
contributed to the development of technical and managerial expertise. It has
triggered the secondary and tertiary waves of economic growth by continuously
providing the inputs for the consuming industry.
SAIL TODAY
SAIL today is one of the largest industrial entities in India. Its strength has been
the diversified range of quality steel products catering to the domestic, as well as
the export markets and a large pool of technical and professional expertise.
Registered Office :-
Address
State :- Delhi
Website :-www.sail.co.in
Head Office :-
Address
State :- Jharkhand
Pincode :- 827001
1.4 BOARD OF DIRECTORS
Bankers:-
Auditors:-
VISION :-
Our vision to be a respected world class corporation and the leader in Indian
steel business in quality, productivity, profitability and customer satisfaction.
Mission :-
We build lasting relationship with customers based on trust and mutual benefit;
uphold highest ethical standards in conduct of our business. We create and
nurture a culture that supports flexibility, learning and is proactive to change. We
chart a challenging career for employees with opportunities for advancement and
rewards and also we value the opportunity and responsibility to make a
meaningful difference in people’s lives.
1.8 AWARDS & ACCOLADES
The excellent performance of the company has been widely recognized. It has
won number of awards and accolades in various fields. These include :
Own Products
Other Product
Product Wise
Government of India
Shareholding Pattern (% of equity)
2.04
Financial Institutions
0.56
& Banks
0.04
6.15 Mutual Funds and UTI
1.41
3.98 Foreign Institutional
Investors (FII’s)
Global Depository
Receipts (GDRs)
85.82
Companies( including
Trusts & Clearing
Members)
Individuals (including
Employees& NRIs)
CHAPTER – 2 FINANCE AND FINANCIAL ANALYSIS
Introduction to Finance
• Preface
The position of finance in business can be matched with the position of
blood in the human body. Finance is the lifeblood of the business.
Finance, today is not only limited up to function that circulates business
but also extended its boundaries. Today success or failure concern
heavily depends upon how effective financial management a firm has. It is
the portfolio that give maximum return at minimum cost. Further different
parties, both inside and outside of firm are interested in financial position
of firm and at fixed interval they often evaluate financial position by
assessing financial statement of firm.
2.2 Financial Analysis & Technique
Financial statement analysis is the collective name for the tools and
techniques that are intended to provide relevant information to decision
makers. The purpose of financial statement analysis is to assess a
company’s financial health and performance. Financial statement analysis
consists of comparison for the same company over period of time and
comparison of different companies either in the same industry or in
different industries.
• Comparative Statement
• Trend Percentages
• Common Size Statement
• Statement showing change in net working capital
• Fund flow statement
• Cash flow statement
• Ratio Analysis
(A)Comparative Statement.
So, in trend analysis we put 100 for 2003-04 and get 120 for 2004-05 and
also get 140 for the year 2005-06. So by comparing data in percentage we can
easily get conclusion about financial position. But some limitation are that if base
year is not normal year than we can not get correct conclusion, further sometime
in current year it may be possible that price of some goods is increased or
decreased or due to some new Govt. policies, business have to be change
accordingly so in this type of condition business in trend analysis cannot give
correct conclusion.
APPLICATION OF
FUNDS
Rs.Crore
Gross Fixed Assets 27767.21 27901.85 28057.06 28335.05 29913.51 30927.22
Land & Building 1985.94 1874.52 1888.29 2269.25 2604.88 2608.23
Plant & Machinery 23286.87 23608.46 23713.23 24085.01 25021.73 25489.78
Other Fixed Assets 1938.46 2057.62 2073.34 1614.31 1528.96 1593.17
Capital WIP 555.94 361.25 382.2 366.48 757.94 1236.04
Less:Cumulative
depreciation 12393.76 13490.26 14547.46 15542.3 17134.62 18232.91
Net Fixed Assets 15373.45 14411.59 13509.6 12792.75 12778.89 12694.31
Revalued Assets 0 0 0 0 0 0
Investment 568.03 543.17 543.17 606.71 292 513.79
Deferred Tax Assets 0 0 0 1187.74 1405.07 1295.13
Inventories 4020.32 3722.52 3057.05 4220.69 6210.06 6651.47
Receivable 2760.37 3123.18 3277.84 4167.8 3428.77 4291.2
Cash & Bank Balance 416.37 512.91 2017.16 6132.12 6172.64 9609.93
Cash in hand 263.71 217.97 192.99 355.61 280.47 420.22
Bank balance 152.66 294.94 1824.17 5776.51 5892.17 9189.61
Intangible/DRE not
written off 579.8 543.68 429.34 353.73 357.01 268.59
Total Assets 23718.34 22857.05 22834.16 29461.54 30644.44 35324.32
Interpretation :-
The balance sheet is the statement showing the increase or decrease in the
assets and liabilities. This indicates the change in capital structure as well as
increase or decrease in assets.
In the last four year net worth is increases very rapidly. It is increases by 4711.14
in 2006-07 as compared to previous year. The reserves & surplus is also get
increase in last four years very rapidly. It is increases by 4711.74 in 2006-07 as
compared to previous year.
Now, here the strongest point of the company that company’s debt is decrease
year by year and proportion of the debt in capital structure is decrease that is in
2005-06 borrowing debt is 3388.45 and in 2006-07 debt is 3291.52. So it is
decrease by 96.43.
The balance sheet also shows the balance of assets and other investment made
by the company. The gross fixed assets are increased in 2006-07 by 1013.71 as
compared to previous year. The investment is also increase in 2006-07 by
221.79 as compared to previous year. The overall inventory turnover ratio shows
the good position of the company is good.
We also conclude that the liquid position of the company is good because cash
balance is increases year by year.
3.3 COMPARATIVE ANALYSIS OF
BALANCE SHEET
Steel Authority Of India
Ltd. Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Rs.Crore 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
SOURCE OF FUNDS
Net Worth 2829.75 2525.24 5037.67 10306.65 12601.41 17313.15
Change -304.51 2512.43 5268.98 2294.76 4711.74
Reserve & surplus -1300.65 -1605.16 907.27 6176.25 8471.01 13182.75
Change -304.51 2512.43 5268.98 2294.76 4711.74
Borrowings 13562 12387.67 8012.99 4959.11 3388.45 3291.52
Change -1174.33 -4374.68 -3053.88 -1570.66 -96.93
Deferred Tax Liabilities 0 0 0 3032.05 2889.53 2707.79
Change 0 0 3032.05 -142.52 -181.74
Current Liabilities &
Provision 7326.59 7944.14 9783.5 11163.73 11765.05 12011.86
Change 617.55 1839.36 1380.23 601.32 246.81
Total Liabilities 23718.34 22857.05 22834.16 29461.54 30644.44 35324.32
APPLICATION OF
FUNDS
Rs.Crore
Gross Fixed Assets 27767.21 27901.85 28057.06 28335.05 29913.51 30927.22
Change 134.64 155.21 277.99 1578.46 1013.71
Investment 568.03 543.17 543.17 606.71 292 513.79
change -24.86 0 63.54 -314.71 221.79
Deferred Tax Assets 0 0 0 1187.74 1405.07 1295.13
Change 0 0 1187.74 217.33 -109.94
Inventories 4020.32 3722.52 3057.05 4220.69 6210.06 6651.47
Change -297.8 -665.47 1163.64 1989.37 441.41
Receivable 2760.37 3123.18 3277.84 4167.8 3428.77 4291.2
Change 362.81 154.66 889.96 -739.03 862.43
Cash &Bank Balance 416.37 512.91 2017.16 6132.12 6172.64 9609.83
Change 96.54 1504.25 4114.96 40.52 3437.19
Intangible/ DRE not
written off 579.8 543.68 429.34 353.73 357.01 268.59
Change -36.12 -114.34 -75.61 3.28 -88.42
Total Assets 23718.34 22857.05 22834.16 29461.54 30644.44 35324.32
3.4 COMMON SIZE STATEMENT OF
BALANCE SHEET
Application of Funds :-
• For the analysis of application of funds we have taken the total assets
as 100.
• From the table we can interpret that the investment in the company
decrease in last three year. So it is not good for company.
• The sundry debtor of the company in last three year is increasing.
• As we see in the table cash balance increase very rapidly in last two
year
• We see in the table that net fixed assets increase in last three year. In
2006-07 fixed assets is 38.94% which is lower than previous year by
5.76%.
2.44% Investment
1.76%
Deferred tax assets
11.64%
16.95% Inventories
2.38% Investment
2.24%
Deferred tax assets
13.66%
Inventories
16.29%
63.05% Receivables
0.00%
2.38% Cash & Bank balance
Investment
Investment
14.15%
Receivables
2.06%
14.33%
4.03% Cash & Bank balance
Investment
11.19%
0.95% Receivables
20.26%
4.59% Cash & Bank balance
Investment
Paid up Equity
Capital
Current
liabilities&provision
FOR THE YEAR 2002-03
Source of funds
Paid up Equity
Capital
Current
liabilities&provision
Paid up Equity
Capital
0.00% 35.09%
Deferred tax
liabilities
Current
liabilities&provision
FOR THE YEAR 2004-05
Source of funds
Paid up Equity
Capital
10.29% 16.84%
Deferred tax
liabilities
Current
liabilities&provision
Paid up Equity
Capital
13.48%
38.39%
Borrowings
27.64%
9.43% 11.06%
Deferred tax
liabilities
Current
liabilities&provision
FOR THE YEAR 2006-07
Source of funds
Paid up Equity
Capital
11.69%
34.00%
Borrowings
7.67% 37.32%
Current
liabilities&provision
3.5 TREND ANALYSIS OF BALANCE SHEET
SOURCE OF FUNDS March-02 March-03 March-04 March-05 March-06 March-07
Rs.Crore 12mths 12mths 12mths 12mths 12mths 12mths
APPLICATION OF FUNDS
Rs.Crore
Gross Fixed Assets 100.00 100.48 101.04 102.05 107.73 111.38
Land & building 100.00 94.39 95.08 114.27 131.17 131.33
Plant & machinery 100.00 101.38 101.83 103.43 107.45 109.46
Other fixed assets 100.00 106.15 106.98 83.28 78.87 82.19
Capital WIP 100.00 64.98 68.75 65.92 136.33 222.33
Less:cumulative depreciation 100.00 108.85 117.38 125.40 138.25 147.11
Net fixed assets 100.00 93.74 87.88 83.21 83.12 82.57
Revalued assets 100.00 100.00 100.00 100.00 100.00 100.00
Investments 100.00 95.62 95.62 106.81 51.41 90.45
Inventories 100.00 92.59 76.04 104.98 154.47 165.45
Receivables 100.00 113.14 118.75 150.99 124.21 155.46
Cash & bank balance 100.00 123.19 484.47 1472.76 1482.49 2308.00
Intangible / DRE not written 100.00 93.77 74.05 61.00 61.57 46.32
off
150
Amount(%)
100
100 93.74 87.88 83.21 83.12 82.57
50
0
2002 2003 2004 2005 2006 2007
Years
The above graph of net fixed assets shows little decreased as compared to
base year 2001-02
In the year 2001-02 it was 100% it decreased 82.57 in the year 2006-07. It
means it has been decreased to 17.43% in this period.
In real it was 15373.45 in the year 2001-02 and decreased to 12694.31 in the
year 2006-07.
Actually, gross fixed assets have been increased continuously but it shows
downward trend only due to depreciation.
Investments
150
Amount(%)
106.81
100 90.45
100 95.62 95.62
50
51.41
0
2002 2003 2004 2005 2006 2007
Years
Inventories
200
Amount(%)
150 165.45
154.47
100
100 104.98
50 92.59 76.04
0
2002 2003 2004 2005 2006 2007
Years
The above graph of trend of inventories shows continuously decrease till 2003-
04 but after that it is icreasing continuously. So there is a fluctuation the
inventories.
In the year 2002-03 it was 100%. In the 2006-07 year it is 165.45. so it is
increase by 65.45%
In real it was 4020.32 Rs.Crore in the year 2001-02 and increased to 6651.47
Rs. Crore in the year 2006-07.
Because there is a continuously increasing in store and spares and finished
goods.
SOURCE OF FUNDS :-
Net W orth
800
Amount(%)
600 611.83
364.22
400 178.03
100 89.24 445.32
200
0
2002 2003 2004 2005 2006 2007
Ye ars
Here the net worth of the company is increasing till 2006-07.
It was 100% in the base year 2001-02 and in 2006-07 it is 611.83% in the year
2006-07. so it is increase by 511.83%
The reason behind that reserve and surplus increase very rapidly, but share
capital remain same.
Borrowings
150
Amount(%)
100
100 91.34 36.57 24.98
50
59.08 24.27
0
2002 2003 2004 2005 2006 2007
Years
200
Amount(%)
150 163.95
100 133.53 152.37 160.58
50 100 108.43
0
2002 2003 2004 2005 2006 2007
Years
The above graph of trend of current liabilities & provisions shows continuously
increase in the current liabilities & provisions compared to the base year 2001-02
In the year 2001-02 it was 100% it has been continuously increase to 163.95%
in the year 2006-07. It means it has been increased 63.95% in this period.
Current liabilities & provisions constitutes of liabilities & provisions.
The reason behind that sundry creditors and other current liabilities are
increasing.
CHAPTER – 4 PROFIT AND LOSS ACCOUNT ANALYSIS
8000
6816.97
7000 6202.29
6000
5000
4012.97
4000
Amount(%)
3000 2512.08
2000
1000
0
-1000 2002 -304.31
2003 2004 2005 2006 2007
-2000
-1706.89
-3000
Years
INTERPRETATION :-
The profit and loss account of the company shows the overall income and
expenditure, made by the company in a particular time period. The difference
between the debit and credit side of the P&L account, shows the net profit or net
loss.
Here the profit and loss account of the company shows the satisfactory level but
as compared to previous year the expenses of the company is increases. Here
the sales turnover is increase year by year. The sales in 2005-06 is 34288.05
and now it is increase by 7000.84 Crore Rs. In 2006-07. So, by this way the
income of the company is increase by 6444.12 in 2006-07 as compared to
previous year.
While on the other side the expenditure shows the expenses meet by the
company in a particular period. The expenditure met by the company is highest
in 2006-07, while in other year the expenditure of the company are increases.
The overall analysis of the expenditure side of the company shows the average
increase in expenses of the company.
After analyzing the income and expenditure side of the company, there is
difference between both sides which is known as the net profit / loss. The net
profit of the company shows an overall increase year by year. In 2001-02 it is
1037.27 and now it is increasing and in 2006-07 it is 11071.5 Crore Rs.
Therefore, On the basis profit and loss account the overall performance is
growing very well. But on the basis of the calculating various ratio, the ratios are
clearly indicates the good and bad position of the company. The profitability
ratios are increasing year by year, which shows the good performance of the
company.
4.3 COMPARATIVE ANALYSIS OF PROFIT & LOSS
ACCOUNT
Steel Authority Of India Ltd. March- 02 March-03 March-04 March-05 March-06 March-07
Rs.Crore 12mths 12mths 12mths 12mths 12mths 12mths
Income
Sales 98.65% 99.03% 98.85% 98.35% 97.82% 97.33%
Other Income 1.35% 0.97% 1.15% 1.65% 2.18% 2.67%
Total Revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Change in stocks -2.51% -2.09% -1.88% 0.73% 3.23% 0.68%
Non-recurring income 4.47% 1.04% 0.48% 0.86% 1.11% 0.72%
Expenditure
Raw materials, stores, etc. 43.39% 35.53% 31.62% 34.48% 40.31% 35.97%
Wages & salaries 19.32% 14.91% 16.05% 11.32% 11.93% 12.10%
Energy( power & fuel) 10.15% 9.84% 8.34% 6.50% 7.12% 6.09%
Indirect taxes (excise etc.) 11.92% 11.59% 11.20% 9.94% 13.19% 12.77%
Advertising & marketing expenses 0.53% 0.69% 0.58% 0.20% 0.17% 0.20%
Distribution expenses 4.01% 2.97% 2.42% 2.45% 2.80% 2.06%
Others 6.47% 12.64% 10.08% 3.29% 7.10% 6.15%
Less: expense capitalized -0.13% -0.10% -0.10% -0.11% -0.14% -0.16%
Non-recurring expenses 0.15% 0.13% 0.23% 0.39% 0.09% 0.12%
Profits / losses
PBDIT 6.16% 10.74% 18.19% 33.13% 21.77% 26.10%
- Financial charges (incl. lease rent) 9.43% 6.67% 3.68% 1.93% 1.33% 0.78%
PBDT -3.27% 4.07% 14.51% 31.19% 20.44% 25.32%
Depreciation 6.86% 5.54% 4.35% 3.34% 3.44% 2.86%
PBT -10.13% -1.47% 10.16% 27.85% 17.00% 22.46%
Tax Provision 0.00% 0.00% 0.46% 7.67% 5.54% 7.84%
PAT -10.13% -1.47% 9.70% 20.18% 11.46% 14.62%
-
Appropriation of profit
Dividends 0.00% 0.00% 0.00% 4.58% 2.69% 3.48%
Retained Earnings -10.13% -1.47% -9.70% 15.60% 8.77% 11.14%
INTERPRETATION OF COMMON SIZE STATEMENT
OFPROFIT AND LOSS ACCOUNT
• For the analysis of Profit & Loss account we have taken the sales and
other income as base.
• From the analysis of common size statement, we can interpret that the
income of the company increase year by year.
• The expenditure also increases year by year. It recorded in % . In current
year expenditure is higher than previous year.
• As we see in the table Raw Material consumed increases very large
proportion. It shows that production of the company increases year by
year.
• The PBDIT of the company is also increase in current year. In previous
year it is 21.77% and in current year it is 26.10%.
4.5 TREND ANALYSIS OF PROFIT AND LOSS ACCOUNT
Steel Authority Of India Ltd. March- 02 March-03 March-04 March-05 March-06 March-07
Rs. Crore 12mths 12mths 12mths 12mths 12mths 12mths
Income
Sales 100.00 123.31 153.90 199.83 206.25 248.37
Other income 100.00 88.94 131.34 246.89 337.67 501.19
Change in stocks 100.00 102.51 115.02 -58.62 -267.84 -68.46
Non-recurring income 100.00 28.62 16.46 38.68 51.60 40.29
Expenditure
Raw materials, stores, etc. 100.00 100.59 111.93 159.29 193.23 208.70
Wages & salaries 100.00 94.84 127.64 117.44 128.49 157.63
Energy(power & fuel) 100.00 119.13 126.28 128.50 145.97 151.18
Indirect taxes (excise, etc.) 100.00 119.47 144.29 167.17 230.21 269.75
Advertising & marketing 100.00 160.94 168.06 77.97 69.04 93.31
expenses
Distribution expenses 100.00 91.15 92.59 122.57 145.38 129.21
Others 100.00 239.91 239.09 101.78 227.89 239.22
Less: expenses capitalized 100.00 97.00 124.27 173.00 223.76 316.57
Non recurring expenses 100.00 106.28 244.19 541.50 126.50 211.33
Profit / losses
PBDIT 100.00 214.42 453.76 1078.63 735.37 1067.37
Financial charges (Incl. lease 100.00 87.00 60.04 41.05 29.45 20.91
rent)
PBDT 100.00 -152.88 -681.15 -1912.21 -1299.46 -1949.07
Depreciation 100.00 99.20 97.12 97.50 104.45 104.81
PBT 100.00 17.83 -154.11 -551.26 -348.75 -558.20
Tax provision 100.00 100.00 100.00 1.18 25.92 33.25
PAT 100.00 17.83 -147.17 -399.38 -235.10 -363.37
Appropriation of profit
Dividends 100.00 100.00 100.00 15.48 9.00 15.00
Retained earnings 100.00 17.83 -147.17 -308.67 -179.92 -276.75
TREND ANALYSIS OF SALES
Sales
Amount(%)
300
248.37
200
153.9 199.83 206.25
100 123.31
100
0
2002 2003 2004 2005 2006 2007
Years
The above graph of sales shows continuously increase in the sales compared
to the base year 2001-02
In the year 2001-02 it was 100% it has been continuously increase to 248.37%
in the year 2006-07. It means it has been increased 148.37% in this period.
In real it was 16624.2 in the year 2001-02 and increased to 41288.89 Rs.Crore
So it is favorable for the company & increases the reputation of the company.
PBDIT
1500
Amount(%)
The above graph shows the continuously increasing in the PBDIT compared to
the base year 2001-02.
In the year 2001-02 it was 100%. And now in 2006-07 it is 1067.37. so it is
increase by 967.37%. It is favourable for the company.
It has increased due to increase in sales over the years.
CHAPTER – 5 CASH FLOW STATEMENT ANALYSIS
5.1 Introduction to Cash Flow Statement
5.2 Cash Flow Statement
5.1 INTRODUCTION TO CASH FLOW STATEMENT
Cash is the nerve center around which business activity flow. The profit figure
shown in the profit & loss statement in the book profit. It does not represent cash
profit. For knowing the cash profit we prepare cash flow statement in the
business. This statement provides information about the cash flows of an
enterprise. This statement is also useful in taking economic decision that are
taken by users require an evaluation of the ability of an enterprise to generate
cash and cash equivalents. The cash flow statement deals with the provision of
information about the historical changes in cash. Cash flow statement which
classifies cash flows during the period among (i) Operating (ii) investing (iii)
financing activities.
5.2 CASH FLOW STATEMENT
Steel Authority Of India Ltd. Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
RsCrore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
• From the cash flow statement we can interpret that cash from
investing activities is performed very good in last two years.
• The reason behind it is that the purchase of the fixed assets by
the company is increase very rapidly. So we can say that the
company expand its business.
• The other side the sale of fixed assets is increasing in last five
year. In 2006-07 the sale of fixed assets is too high.
• From the cash flow statement we can say that the cash from
financing activities is decreasing year by year.
• The reason behind it is that company repaid the borrowing and
loan. And also paid to the dividend in last three years to the
shareholders.
CHAPTER – 6 MEANING OF RATIO ANALYSIS
1. Percentage
2. Fraction
3. Proportion of numbers
The rational of ratio analysis lies in the fact that it makes related
information comparable. A single figure by itself has no meaning but when
expressed in terms of a related figure, it yields significant inferences.
The use of ratio was started by banks for ascertaining the liquidity and
profitability of the company’s business for the purpose of advancing loan to them.
It gradually become popular and other creditors began to use them profitably.
Now even the investor calculates ratio from the published account of the
company before investing their savings. The ratio analysis provides useful
information to management, which would help them in taking important policy
decision. Diverse group of people make use of ratios, to determine the particular
aspect of the financial position of the company, in which they are interested.
1) Profitability
Useful information about the trend of profitability is available from the
profitability ratios. The gross profit ratio, net profit ratio and ratio of return on
investment give a good idea of profitability of business.
2) Liquidity
In fact, the use of this ratio to ascertain the liquidity of the business. The
current ratio and liquid ratio will tell whether the business will be able to meet its
current liabilities as and when they mature.
3) Efficiency
The turnover ratio are excellent guides to measures the efficiency of
managers. For e.g. the stock turnover will indicate how efficiency the sales are
being made, the debtors turnover shows the efficiency of collection department
and assets are used in business.
5) Indicate Trend
The ratio of the last three to five years will indicate the trend in the
respective fields.
6) Useful for budgetory Control
Regular budgetary reports are prepared in business where the system of
budgetary control in use. If various ratios are prepared in this reports, it will give a
fairly good idea about various aspect of financial position.
{A}LIQUIDITY RATIOS
Liquidity is the most important factor in successful financial management.
A firm should have enough money to meets its short term liabilities, as and when
they become due for payment. If affirm fails to meet its short term liabilities
frequently, its prestige and creditworthiness would be adversely affected. A very
high degree of liquidity is also bad; idle assets earn nothing. Therefore it is
necessary to strike a proper balance between high liquidity and lack of liquidity.
{A.1}-Current Ratio
This most widely used ratio shows the proportion of current assets to
current liabilities. It is also known as ‘ Working Capital Ratio’. It is a measure of
short term financial strength of business and shows whether the business will
able to meet its current liabilities. Generally, it is believed that ratio of 2:1 is good
and shows a comfortable working capital position. But this ratio is differ company
by company. The formula for calculating this ratio is as under :-
2 1.67
1.5 1.28 1.31
Ratio
0.77 0.82
1 0.63
0.5
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This calculation implies that the fluctuation in the current ratio. As compared to
previous year the current years ratio shows the better liquidity position. In the
previous year this ratio is 1.31:1 and in the current year it is 1.67:1 which shows
increase in liquidity. The reason behind that cash balance and receivable is
increasing. But as compared to standard ratio it is not good but as per chore
committee it is good because as per chore committee 1.33 ratio is good. The
current liabilities also increase year by year. But finally company had tried to
maintain and improve this ratio.
1.5
1.13
0.9 0.79
1
Ratio
0.52
0.5 0.28 0.38
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
So as per the current year ratio of the company is up to some extent satisfactory.
This ratio shows the repay ability of the company which is satisfactory as per
lower level all over the year. As compared to previous year in current year it is
good. In 2002 it is 0.28 and in current year it is 1.13:1.
= Liquid Assets
Projected Daily Cash Requirement
Rs. Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Liquid 3153.38 3627.80 5123.96 10153.73 9585.05 13884.67
Assets
Daily cash 82.18 92.18 104.62 116.14 143.37 157.67
requirement
Defensive 38 39 49 87 67 88
Interval
Ratio(days)
Defensive Interval Ratio(days)
100 87 88
80 67
60 49
39
Ratio
38
40
20
0
2002 2003 2004 2005 2006 2007
Ye a rs
Interpretation :-
This ratio shows the recovery of invested liquid assets. Therefore higher the ratio
shows the longer the period of recovery of liquid assets. Here the defensive
interval ratio of the company is increasing till 2005 but it has decreased for one
year and than again it has increase. So it is fluctuating. That means requirement
of more investment of liquid assets.
{A.4}Cash Ratio
Cash ratio is the most liquid asset; Financial analyst may examined the
cash ratio and its equivalent to current liabilities. Trade investment or marketable
securities are equivalent of cash, they may be include in the computation of cash
ratio.
100 78.27
80
54.57 51.1
Ratio
60
40 20.3
20 3.67 5.42
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This ratio shows the available percentage of cash as compare to current
liabilities. The total cash available to the company is average increased year by
year and also average ratio i.e. 3.67, 5.42, 20.30, 54.57, 51.10, 78.27 increased
which shows the good performance of the company. But in the 2005-06 it is
decreased from 54.57% to 51.10%. Because cash does not increase as
compared to increase current liabilities.
{B}CAPITAL STRUCTURE/LEVERAGE RATIO
The second category of financial ratios is leverage or capital structure
ratios. The long term creditors would judge the soundness of a firm on the basis
of the long term financial strength measured in terms of its ability to pay the
interest regularly as well as repay the installment of the principal of due dates or
in one lump sum at the time of maturity. Leverage means proportion of owner’s
capital to debt capital. It shows the proportion of outside funds used in business
as compared to funds provided by the owners in terms of share capital, reserves
etc.
2 1.6
1.5 1.19 1.23
0.93 0.95
Ratio
1 0.8
0.5
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This ratio is increasing year by year. In 2004-05 ,2005-06 2006-07 the fixed
capital was more than adequate to cover the fixed assets. In the year 2003-04 it
is 0.95 and now it is 1.60 in 2006-07. It is increase by 0.65.
8 6.22
6.02
6
Ratio
4
1.72
2 0.5 0.27 0.19
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This ratio shows the 0.19 paisa of liabilities against the 1Rs. Of owner’s capital.
This ratio is very high in 2001-02, 2002-03 but in last 4 year it is decreasing year
by year. It is good for company as the interest burden is low. In the 2001-02,
2002-03 the company have more bank borrowing and debenture but later on
company had repaid its debentures and loans.
= Capital Employed
Net Worth
Rs.Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Capital 11787.45 12857.76 12517.65 14897.54 15458.80 20209.28
Employed
Net Worth 2252.1 1988.93 4659.17 10011.72 12385.59 17184
Capital 5.23 6.46 2.69 1.49 1.25 1.18
Employed
Ratio (times)
8 6.46
6 5.23
Ratio
4 2.69
1.49 1.25
2
0
2002 2003 2004 2005 2006
Years
Interpretation :-
This ratio shows the capital employed in business against 1 Rs. of net worth.
The overall result of this ratio over past year is good. That is in 2001-02, 2002-
03, 2003-04, 2004-05, 2005-06, 2006-07 it is as 5.23, 6.46, 2.69, 1.49, 1.25,
1.18. In 2001-02, 2002-03 there is better utilization of employed capital of the net
worth.
10 2.82
-1.07 0.23
0
-10
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This ratio shows whether the company has sufficient income to cover its interest
requirement by a wide margin. This ratio is as increasing rate. This is very good
for company. It implies that adequate safety for payment of interest even if there
were to be a drop in the company’s earning. The companies interest cover
continuous to be exceptionally high. This ratio shows that EBIT has power 28.37
times covering interest in 2006-07.
{C}PROFITABILITY RATIO
40 35.5
28.62
30 23.41 21.16
Ratio
20 15
10 5.21
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
Gross profit ratio shows the relation between gross profit and sales. That means
how much proportion of gross profit in sales. This ratio is increase still 2004-05
but in 2005-06 it is decreasing by 19.34% that is 21.16%. It indicate that cost of
sale is high or that the purchasing is inefficient.
{C.2} Operating Profit Ratio
It is a ratio showing relationship between Operating Profit and Net Sales.
It shows the efficiency of management.
= EBIT X 100
Net Sales
Rs. Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
EBIT -1706.89 -315.87 2685.06 9365.35 5705.74 9422.62
Sales 14615.11 18099.82 22684.99 29861.31 29662.95 35869.39
Operating -11.68 -1.75 11.84 31.36 19.24 26.27
Profit
Ratio (%)
40 31.36
26.27
30 19.24
20 11.84
Ratio
10 -1.75
0 -11.68
-10
-20
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
Operating profit ratio shows the proportion of profit before interest and tax in
sales revenue. This ratio is in 2002, it is -11.68%, in 2003 it is -1.75%, in 2004 it
is 11.84%, in 2005 it is 31.36%, in 206 it is 19.24% and in 2007 it is 26.27%
which means operating profit is increasing. So operating expenses is decreasing.
= PAT X 100
Sales
Rs. Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
PAT -1706.89 -304.31 2512.08 6816.97 4012.97 6202.29
Sales 14615.11 18099.82 22684.99 29861.31 29662.95 35869.39
Net Profit -11.68 -1.68 11.07 22.83 13.53 17.29
Ratio (%)
30 22.83
20 11.07 13.53 17.29
Ratio
10 -1.68
0 -11.68
-10
-20
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
Net profit ratio shows the relationship of PAT with the sales. This ratio does not
show the good position of the company. In past year that is 2001-02, 2002-03,
2003-04, 2004-05, 2005-06, 2006-07 the ratio is -11.68, -1.68, 11.07, 22.83,
13.53, 17.29 and it is decrease due to increase in cost and expenses of the
company. Soothe current year ratio is decrease to 13.53% in 2006 but in 2007 it
is increase to 17.29%.
= COGS X 100
Sales
Rs.Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Cost of 13854.18 15386.41 17375.22 19260.22 23385.46 25603.14
goods sold
Sales 14615.11 18099.82 22684.99 29861.31 29662.95 35869.39
COGS 94.79 85.00 76.59 64.50 78.84 71.38
ratio(%)
COGS ratio(%)
94.79
100 85 78.84 71.38
76.59
80 64.5
Ratio
60
40
20
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This ratio indicates proportion of cost of good sold in the sales revenue. The cost
of good sold ratio is decrease year by year from 2002 to 2005 but in 2006 due to
some unknown reason the cost is increase from 64.50% to 78.84%.
150
110.46 100.88
91.75 97.58 89.06
100 77.46
Ratio
50
0
2002 2003 2004 2005 2006 2007
Ye a rs
Interpretation :-
The operating expenses are very high as compared to sales. In the 2002 and
2003 it is very high but in 2005 it is controlled by company. But in 2006 and 2007
it is increasing because indirect taxes and other expenses is increasing very
rapidly. Here company try to control this expenses.
= PAT X 100
Total Assets
Rs.Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
PAT -1706.89 -304.31 2512.08 6816.97 4012.97 6202.29
Total Assets 23718.34 22857.05 22834.16 29461.54 30644.44 35324.32
Return On -7.20 -1.33 11.00 23.14 13.10 17.56
Investment
(%)
Return On Investment (%)
30 23.14
17.56
20 11 13.1
Ratio
10
-1.33
0 -7.2
-10
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This ratio shows company’s profit earned on the total investment made in the
company. This ratio is increasing every year. In 2002 it is -7.20% and now it is
17.56 %in 2007. so it is increasing by 24.76%. It is very good for the company.
6 5.23
4.19
3.41 3.52
4 3 2.66
Ratio
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
The average of all year’s ratio shows the reduction in selling expenses of the
company. The ratios are 5.23, 4.19, 3.41, 3.00, 3.52, 2.66. because the
advertising and marketing expenses decreases year by year and sales are
increases year by year. But in 2006-07 the advertising expenses suddenly
increases.
EPS Ratio
20 16.5 15.02
15 9.72
10 6.08
EPS
5 -0.74
0 -4.13
-5
-10
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
The earning per share is increases very rapidly. But in 2005-06 EPS is
decreases because PAT is decrease. EPS is as -4.13, -0.74, 6.08, 16.50, 9.72,
15.02. It is very good for shareholders. They get good return.
100 66.14
49.87
50 31.85 35.82
Ratio
-12.05
0
-60.32
-50
Interpretation :-
The ratio is in minus in first two years because PAT is in minus. but in 2004 &
2005 year it is increases very rapidly. In this period company use owner’s fund
very profitably. But in 2006 it is decreasing because shareholder’s funds are
increasing and PAT is decreasing. But, though the company is earning good
profit.
{D} ACTIVITY RATIO
The activity ratio measures the efficiency with which assets are being
used in business. They are also known as Turnover Ratio. The efficiency with
which the assets are used would be reflected in the speed and rapidly with which
assets are converted into sales. The greater the rate of turnover or conversation,
the more efficient is the utilization / management, other things being equal.
= COGS
Inventory
Rs.Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
COGS 13854.18 15386.41 17375.22 19260.22 23385.46 25603.14
Inventory 4020.32 3722.52 3057.05 4220.69 6210.06 6651.47
Inventory 3.45 4.13 5.68 4.56 3.77 3.85
turnover
Ratio
(times)
5.68
6 4.56
4.13 3.77 3.85
4 3.45
Ratio
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
Here, we have taken total inventory as base. The overall result of this ratio shows
bad result of inventory turnover. The result of 2002 to 2004 it is increasing rate
but after 2004 it is decreasing. Stock does not sale fast. Here company try to
increase this ratio.
=
Sales
Debtors+ Bills Receivable Rs.Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Sales 14615.11 18099.82 22684.99 29861.31 29662.95 35869.39
Debtor’s 2474.15 2917.74 2914.11 3046.80 3183.91 4003.42
+Receivable
s
Debtor’s 5.91 6.20 7.78 9.80 9.32 8.96
turnover
Ratio (Times)
15
9.8 9.32 8.96
10 7.78
Ratio
5.91 6.2
5
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
Here we have taken debtor plus bills receivable as base. Till 2005 it is increasing
trend but after 2005 it is decreasing trend. The conversation of debtors into cash
shows a good collection policy of the company. It is increasing in earlier years
because debtors are increasing and sales are also increasing.
1.5
0.99 1.01 0.97 1.02
1 0.79
0.62
Ratio
0.5
0
2002 2003 2004 2005 2006 2007
Ye a rs
Interpretation :-
Here we have taken as total assets as base. The total assets are increasing year
by year. The investment in assets in 2001-02 it is 23718.34 and in 2006-07 it is
35324.32 which was approximately 1.5 times more. The company is using the
assets efficiently that’s why the ratio is increasing trend. The ratios are increasing
that is 0.62, 0.79, 0.99, 1.01, 0.97, 1.02.
= Net Sales
Fixed Assets
Rs. Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Sales 14615.11 18099.82 22684.99 29861.31 29662.95 35869.39
Fixed Assets 15373.45 14411.59 13509.6 12792.75 12778.89 12694.31
Fixed Assets 0.95 1.26 1.68 2.33 2.32 2.83
Turnover Ratio
Fixed Assets Turnover Ratio (times)
2.83
3 2.33 2.32
2 1.68
Ratio
1.26
0.95
1
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This ratio shows an efficiently and profitability of the business. This ratio is
continuous increasing. This shows the fixed assets are being used effectively to
earn profits in the business. It is good for the company. In 2001-02 this ratio is
0.95 and in 2006-07 it is 2.83.
= 360 Days
Debtor’s Turnover
Rs. Crore
Year Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Days 360 360 360 360 360 360
Debtor’s 5.91 6.20 7.78 9.80 9.32 8.96
turnover
Debt 61 58 46 37 39 40
collection
period (days)
Debt collection period (days)
80 61 58
60 46
37 39 40
Ratio
40
20
0
2002 2003 2004 2005 2006 2007
Years
Interpretation :-
This ratio shows the company’s efficiency of collecting the money back from the
debtors. But in the initial years it is very high, here the company is lacking the
proficiency. Generally most of the company ‘s having the policy of giving the time
period of 30-40 days to their debtors. Till 2005 it is decreasing, but after 2005 it is
increasing trend. Here company try to maintain this ratio.
CHAPTER-9 DU POINT CHART
Profit margin & assets turnover are the two drivers of return on assets. The Du
Pont System of financial analysis clearly brings out the effects of these two
drivers on return on assets. A system is useful for analysis, which considers
important inter relationship based on information found in financial statements.
Any decision affecting the product price per unit costs, volume or efficiency has
an impact on the profit margin or turnover ratios. Similarly any decision affecting
the amount & ratio of debt or equity used will affect the financial structure & the
overall cost of capital of a company. Therefore, these financial concepts are very
important to evaluate as every business is competing for Limited Capital
Resources. Understanding the inter relationship among the various ratios such
as turnover ratio, average & probability ratios helps companies to put their money
areas where the risk adjusted return is the maximum.
The chart used by “Du Pont Company” of U.S.A is known as Du Pont Chart.
This is the Du Pont Chart applied to Ashok Leyland Ltd. At the left of the Du Pont
Chart is the return on the assets defined as the product of the Net Profit Margin &
the Total Assets Turnover Ratio.
Net Profit Total Assets = Net Profit / Sales X Net Sales / Avg. Total Assets.
Such decomposition helps in understanding how the Net Profit Margin & Total
Assets Turnover Ratio influences the Return on Total Assets.
9.2 DU PONT CHART OF SAIL
ROI (%)
2001-02 : -7.20
2002-03 : -1.33
2003-04 : 11.00
2004-05 : 23.14
2005-06 : 13.10
2006-07 : 17.56
From the analysis of the liquidity ratio we are able to recommend that the
liquidity position of the company is good, and also it is able to meet it current
obligation.
The capital structure ratios shows the performance of the company is
increasing, because the company repaid the long term long term borrowing and
debenture
The balance sheet figures are showing the declining trend since last few years.
It should be the reason for higher inventory level which unnecessary blocked the
money. For higher the profitability ratio of the firm, it is required to increase the
sales along with:
To increase the work efficiency of the workers as well as of the staff members,
arrangement of different training programmes like meetings, seminars,
conferences, coaching classes etc. is required.
For the innovation of new market, select capable market representatives who
are more efficient to recover the more market share.
Try to maintain the quality level as per the market demand which satisfies the
customers more.
In order to increase the profit the firm should keep proper control over the
expenses retaliating to the purchase of goods, manufacturing and labours for
that, proper supervision and timely comparison of actual with budgeted
overheads should be taken. This will help the management to know the causes
and taking competitive actions to reduce the expenses.
In order to reduce the expenses relating to payment of interest, the firm should
rely more on its share capital rather than borrowing loans and funds. Firm should
also try to maintain proper balance between debt and equity.
To improve the liquidity position of the firm, proper working capital is necessary
to recover the daily cash requirement. For that, the firm should:
Try to reduce the debt collection period which should be main sources for
working capital.
Use more credit facility which is given by the creditors.
Firm should also use more short term loans to recover the working capital
requirement because the interest rate for short term loans is less and it should be
flexible to use.
In order to maximize wealth under uncertainty, the firm must pay enough
dividends to satisfy investors. It should help to increase the moral of the investors
and side by side also helps in long term financial strength of the firm. So, by
increasing profits, the firm should pay dividends regularly.
CHAPTER – 11 CONTEMPORARY ISSUES IN SAIL
Goal ‘in principle’ approval accorded for merger of NINL, MEL & BRL with
SAIL.
Agreement concluded for setting up of cement plant in joint venture with
M/S JP Associates for utilizing BF slag of Bhilai Steel Plant.
Process under way for setting up a slag based cement plant using BF slag
at BSL in the frame work of JV.
JV companies supplying captive power to SAIL to augment their
capacities by setting up 500 MW plant addition each at BSP & BSL.
CHAPTER-12 ANNEXURE
Assets : mfg. cos.
Steel Authority Of India Ltd. Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
Profits / losses
PBDIT 1037.27 2224.14 4706.71 11188.27 7627.76 11071.5
Financial charges 1588.27 1381.79 953.57 651.98 467.76 332.13
Interest 1547.63 1333.02 918.14 605.49 429.72 315.28
On short term borrowings 629.39 430.34 128.26 79.01 66.3 30.22
On long term borrowings 918.24 902.68 789.88 526.48 363.42 285.06
Other financial charges 40.64 48.77 35.43 46.49 38.04 16.85
Lease rent 0 0 0 0 0 0
Interest capitalised 0 0 0 1.69 4.69 0.88
PBDT -551 842.35 3753.14 10536.29 7160 10739.37
Depreciation 1155.89 1146.66 1122.59 1126.95 1207.3 1211.48
PBT -1706.89 -304.31 2630.55 9409.34 5952.7 9527.89
Tax provision 0 0 118.47 2592.37 1939.73 3325.6
Corporate tax 0 0 118.47 748.06 1915.4 3299.12
Deferred taxes 0 0 0 1844.31 0 0
Other direct taxes 0 0 0 0 24.33 26.48
PAT -1706.89 -304.31 2512.08 6816.97 4012.97 6202.29
-
Appropriation of profits
Dividends 0 0 0 1548.27 941.94 1478.4
Equity dividends 0 0 0 1363.03 826.08 1280.42
Preference dividends 0 0 0 0 0 0
Dividend tax 0 0 0 185.24 115.86 197.98
Retained earnings -1706.89 -304.31 2512.08 5268.7 3071.03 4723.89
-
Profits / Losses (NNRT)
PBDIT (NOI, NNRT) 82.14 1833.3 4345.25 10470.77 6505.63 9685.24
PBDIT (NNRT) 308.53 2034.66 4642.59 11029.7 7270.09 10819.88
PBDT (NNRT) -1279.74 652.87 3689.02 10377.72 6802.33 10487.75
PBT (NNRT) -2435.63 -493.79 2566.43 9250.77 5595.03 9276.27
PAT(NNRT) -2435.63 -493.79 2447.96 6658.4 3655.3 5950.67
CHAPTER – 13 BIBLIOGRAPHY
For the preparing the report we uses the following :-
2. Websites :- WWW.indiainfoline.com
WWW.sail.com
WWW.Kotaksecurities.com