Project: Financial Ratios and Ratio

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A PROJECT REPORT ON AN ANALYSIS & COMPARATIVE STUDY OF FINANCIAL STATEMENTS

FOR KALYANI STEELS LTD., PUNE

SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILMENT OF TWO YEARS FULL TIME COURSE MASTERS IN BUSINESS ADMINISTRATION(MBA)

SUBMITTED BY KETAN P. SHETTI (BATCH 2005-07)

VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE-48

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To Whomsoever It May Concern
This is to certify that Mr. Shetti Ketan Prakash is a bonafide student of Vishwakarma Institute of Management, Pune. He has successfully carried out his summer project titled AN ANALYSIS AND COMPARATIVE STUDY OF FINANCIAL STATEMENTS at Kalyani Steels Ltd, Pune. in the partial fulfillment of Masters in Business Administration course of University of Pune (2005-2007).

He has worked under our guidance and directions. His work is found to be good and complete in all respects. During the period we found him hard working, sincere and loyal. We wish him all the best for his future.

Prof Mahesh Halale. (Project Guide)

Dr Sharad L. Joshi. (Director)

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ACKNOWLEDGEMENT
It gives me great pleasure to express my gratitude towards all the individuals who have directly or indirectly helped me in completing this project. First of all I am extremely grateful to Mr. Anant Bhave, Vice President (Accounts and Finance Project), Kalyani Steels Ltd, for providing me integrating project in finance for sixty days. I would like to express my sincere gratitude to my company guide Mr. Rajiv Toye, Associate Vice President (Accounts and Finance), Kalyani Steels Ltd for his invaluable guidance during the project period which helped me in completing the project successfully. I also extent my special thanks to Mr. Anand Shirsat (Asst Personnel Manager), Kalyani Steels Ltd.

I wish to express my sincere thanks to our Director Dr. Sharad Joshi and my project guide Prof Mahesh Halale for providing me valuable guidance & inputs which helped me to complete this project in true sense.

I also extend my thanks to all the staff of Finance department of Kalyani Steels Ltd. for their support, which helped me a lot in completing the project.

Lastly my ingenious thanks to all my colleagues and friends for their kind cooperation and help.

Ketan Shetti (MBA-II)

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CONTENTS
Sr. No. Topic Page No.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

EXECUTIVE SUMMARY OBJECTIVE AND SCOPE OF PROJECT COMPANY PROFILE THEORETICAL BACKGROUND RESEARCH METHODOLOGY RATIO ANALYSIS AND PRESENTATION CONCLUSION BIBLIOGRAPHY ANNEXURE 1 ANNEXURE 2

1 2 3 14 26 27 46 47 48 49

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EXECUTIVE SUMMARY

This project named An Analysis and Comparative Study of Financial Statements was carried out at Kalyani Steels Ltd to analyze and understand financial feasibility of the company in terms of liquidity, turnover, solvency, profitability etc. by using Ratio Analysis technique.

I chose to do this project at Kalyani Steels Ltd because it is a leading manufacturer of Carbon and Alloy steels and an important constituent of the over $ 1.2 billion Pune based Kalyani group. The company was established way back in 1973 mainly to cater to in-house requirements of forging quality steels. Over the years the Kalyani Steels Ltd is upgrading its technology and infrastructure to justify its mission statement, Better Steel Through Better Technology .

The Ratio Analysis technique is the process of identifying the financial strength and weakness of the firm by properly establishing relationship between the items of the balance-sheet and the profit and loss account because the figures recorded in the financial statements are absolutely incapable of revealing the soundness or otherwise of a Company s financial position or performance. Thus the technique of Ratio Analysis has been used which is supposed to be powerful tool for financial statements.

In Ratio Analysis technique a ratio is used as a benchmark for evaluating the financial position and the performance of the firm.

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OBJECTIVES

1. To obtain a true...
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