Ratio Analysis Comparative Study

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“RATIO ANALYSIS AND COMPARATIVE BALANCE SHEET OF BHUSHAN STEEL”

PROJECT REPORT
2009

Submitted for the partial fulfillment of the requirement for the award

Of

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY

AVINASH KUMAR JHA

ROLL NO-8073

UNDER THE SUPERVISION OF

Prof. GUNJAN AGARWALL

Department of Management

INSTITUTE OF MANAGEMENT EDUCATION

INSTITUTE OF MANAGEMENT EDUCATION
G.T Road, Sahibabad, Ghaziabad (U.P)

DEPARTMENT OF MANAGEMENT

CERTIFICATE

This is to certify that the Project Report entitled “RATIO ANALYSIS AND COMPARATIVE BALANCE SHEET OF BHUSHAN STEEL” submitted by Avinash Kumar Jha for the partial fulfillment of the requirements of PGDM (Batch 2008-10 ), embodies the bonafide work done by him / her under my supervision.

____________________ Signature of the Guide

ACKNOWLEDGEMENT
It is a matter of great satisfaction and pleasure to present this presentation on “RATIO ANALYSIS AND COMPARATIVE BALANCE SHEET OF BHUSHAN STEEL ". I take this opportunity to owe my thanks to all my faculty members for their encouragement and able guidance at every stage of this report. There are people who simply by their presence inspired me to complete this project. I am grateful to Dr. D.P. Goyal, Director, Institute of Management Education for creating a conducive environment in the institute for purposeful education.

I am grateful to Dr. Taruna Gautam, Assistant director, Institute of Management Education, for her encouragement. I acknowledge my gratitude and indebtness to my internal project guide Ms. Gunjan Agarwall , faculty of Institute of Management Education and my external project guide Mr. A. Paul (AGM Finance) of BHUSHAN STEEL Ltd. who spared his precious time in guiding me and for making valuable suggestions in compiling this project report.

I express my gratitude towards all those people who have helped me directly or indirectly in completing this report.

AVINASH KR. JHA PGDM

Roll no. – 8073
Executive Summary
Every countries economic condition depends upon the performance of its Industry. How the investors are interested in it as it will help in the increment in the flow of foreign exchange. A sound and well performing industry will always attract investors as it will give them a return in a less time period. But it is not easy for a layman to understand or to properly analyze the performance of the company. To understand the performance of any company we have to do financial statement analysis. Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two variables.

Ratio analysis helps in inter-firm comparison by providing necessary data. An interfirm comparison indicates relative position. It provides the relevant data for the comparison of the performance of different departments. If comparison shows a variance, the possible reasons of variations may be identified and if results are negative, the action may be initiated immediately to bring them in line.

In my study I have tried to make out a clear picture of Bhushan steel ltd. performance in the steel industry with the help of Ratio analysis and Comparative Balance sheet. While doing my interpretation through Ratio analysis I have focused on 5 main areas: 1. Liquidity

2. Investment/shareholder
3. Gearing
4. Profitability
5. Financial
With the help of ratio analysis we measures relationship between resources and...
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