SIP RINL Final1

Working Capital Management at Rashtriya Ispat Nigam Limited
Vignana Jyothi Institute of Management

Vignana Jyothi Nagar,
Bachupally (Via) Kukatpally,
Hyderabad, Telangana-500090
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Summer Internship Report on
Working Capital Management
At Rashtriya Ispat Nigam Limited
For the Period 17th April 2017 to 17th June 2017
Submitted by
Modu Manoj Kumar
161329
Vignana Jyothi Institute of Management

VJIM, Vignana Jyothi Nagar,
Bachupally, (Via), Kukatpally,
Hyderabad, Telangana 500090
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General description of the internship
Title of the SIP project: Working Capital Management

Name of the student: Modu Manoj Kumar
Name of the company: Rashtriya Ispat Nigam Limited

Department: Finance and Accounts
Company mentor details:
Name: Mr. Kiran Sadananda Gopan
Designation: Manager
Contact details: 0891-2708124
Email Id: [email protected]

Company address: Finance and Accounts Department,
Steel Plant Township, Qtr No.108/B,
Sector-6, Ukku Nagaram, Visakhapatnam,
Andhra Pradesh-530031.
Contact number: 8330930890
Website: www.vizagsteel.com
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DECLARATION
I hereby declare that this Project Report titled Working Capital

Management submitted by me is a bonafide work undertaken by me and
it is not submitted to any other Institution or university for the award of
any degree/diploma certificate or published any time before.
Modu Manoj Kumar
Name of the Student Signature of the Student
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CERTIFICATE
This is to certify that the Project Report titled Working Capital

Management at RINL being submitted to Rashtriya Ispat Nigam Limited
is a bonafide work done by Modu Manoj Kumar, bearing roll no. 161329
under my guidance.
Date:17/06/2017
Signature of the Guide
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Acknowledgement
I Modu Manoj Kumar convey my deep sense of gratitude to all those who have helped me
in completing my Summer Internship Project to the best of my ability. Being a part of this
project has certainly been a unique and a very productive experience on my part.
I am thankful to Mr. Abhishek Sinha (Assistant Professor Finance) for making all kinds
of arrangements to carry the project successfully and for guiding and helping me to solve
all kinds of quarries regarding the project work. His systematic way of working and
incomparable guidance has inspired the pace of the project.
I would also like to thank my mentor and project coordinator, Mr. Kiran Sadananda
Gopan Manager, (Finance & Accounts) for assigning me a project of such a great learning
experience his valuable advice and suggestions supported me to complete my project with
great learning. Mr. Kiran Sadananda Gopan provided me insights about the company,
Industry and global market trends to have a brief knowledge about Steel industry.
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Executive Summary
My project is based on the study of working capital management at Rashtriya Ispat Nigam
Limited (RINL) the corporate entity of Visakhapatnam Steel Plant. During eight weeks
Summer Internship Project, I enhanced my knowledge how a manufacturing firm manages
its working capital to continues its day to day activities.
Rashtriya Ispat Nigam Limited (RINL) the corporate entity of Visakhapatnam Steel Plant,
is a Navaratna PSE under the ministry of steel. Visakhapatnam Steel Plant popularly
known for its Quality Products and Customers Delight. A market leader in long Steel
products, it caters to the requirements of the Construction, Manufacturing Automobile,
General Engineering and Fabrication sectors. Vizag Steel Plant founded in 1971, the
company focuses on producing Value Added Steel, with 2,14,000/- tonnes produced in
2010.
The working capital management refers to the management of working capital, or

precisely to the management of current assets and Current Liabilities. A firm’s working
capital consists of its investments in current assets, which includes short-term assets cash
and bank balance, inventories, receivable and marketable securities.
This project tries to evaluate how the management of working capital is done in Rashtriya
Ispat Nigam Limited through Financial Statement Analysis, Comparative Statement,
Common Size Statement and Ratio Analysis.
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S No. Contents Page No
1. List of tables 01 to 01
2. List of figures 01 to 01
3. Introduction 02 to 04
4. PMCI analysis of the Company. 05 to 10
5. My project 11 to 80
5.a Back ground /Introduction of the project work 11 to 15
5.b Project or work area deliverables 16 to 17
i) Objectives of the project, methodology, scope and limitations of the project

5.c Financial information of company 18 to 67
(i) Accounting process being followed by the company.
(ii) Financial information of company
(iii)Comparative Financial statements
(iv) Common size Financial statements and
(v) Ratio Analysis.
5.d Working capital Management in RINL (Project) 68 to 77
5.e Conclusions & Analysis 78 to 78
5.f Learning from this project 79 to 79

5.g Bibliography 80 to 80
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List of tables
1) A Glance of Financial Results for past 20 Years.
2) Financial information of company
3) Comparative Balance Sheet
4) Comparative Income Statement
5) Common size Balance Sheet
6) Common Size Income Sheet
List of Figures
1) Organization Structure
2) The various market segment and its details for RINL products
3) Raising of India Demand
4) The concept of working capital
5) Working Capital Cycle
6) Sources of Data
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Introduction
Rashtriya Ispat Nigam Limited (RINL) the corporate entity of Visakhapatnam Steel Plant, is a Navaratna
PSE under the ministry of steel. Visakhapatnam Steel Plant popularly known for its Quality Products and
Customers Delight. A market leader in long Steel products, it caters to the requirements of the Construction,
Manufacturing Automobile, General Engineering and Fabrication sectors.
Vizag Steel Plant founded in 1971, the company focuses on producing Value Added Steel, with 2,14,000/-
tonnes produced in 2010.
History
On 17th April 1970, the Prime Minister of India, the late Indira Gandhi, announced the government’s
decision the in Parliament to establish a steel plant at Visakhapatnam. On 20th January 1971, Indira Gandhi
laid the foundation stone of the plant. In the 1970s, Kurupam Zamindars Donated 6,000 acres of land for
Vizag Steel Plant. A New company Rashtriya Ispat Nigam Limited (RINL) was formed on 18th February
1982. Visakhapatnam Steel Plant was separated from Steel Authority of Indian Limited (SAIL) and
Rashtriya Ispat Nigam Limited (RINL) was made the corporate entity of Visakhapatnam Steel Plant in
April 1982.
Vizag Steel Plant is the only Indian shore-based steel plant and is situated on 33,000 acres and is poised
to expand to produce up to 20 Million tonnes in a single campus.
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Highlight’s of the RINL
A Glance of Financial Results for past 20 Years
Rs. Crores
Tax before Tax After Reserves & Employees as on 31
Year Turnover Other Revenue Gross Income Profit/(Loss) profit/(Loss) Capital Surplus March Nu
1995-96 3040 116 3156 -204 -204 6494 -3174 17642
1996-97 3135 78 3213 -246 -246 6494 -3420 17478
1997-98 3071 97 3168 -177 -177 6494 -3597 17354
1998-99 2762 197 2959 -457 -457 6494 -4054 17400
1999-00 2972 154 3126 -562 -562 7827 -4616 17254
2000-01 3437 181 3618 -291 -291 7827 -4907 17131
2001-02 4081 153 4234 -75 -75 7827 -4982 17026
2002-03 5059 231 5290 521 521 7827 -4461 16894
2003-04 6168 209 6377 1547 1547 7827 -2914 16755
2004-05 8182 286 8468 2254 2008 7827 -906 16613
2005-06 8491 447 8938 1890 1252 7827 346 16574
2006-07 9151 661 9812 2222 1363 7827 1711 16401
2007-08 10433 904 11337 2995 1943 7827 3654 16416
2008-09 10410 924 11334 2027 1336 7827 4593 17225
2009-10 10634 758 11392 1248 797 7827 5058 17830
2010-11 11517 526 12043 982 658 7827 5402 17829
2011-12 14461 437 14898 1110 751 7727 5932 18079
2013-13 13553 558 14021 526 353 6347 6131 18072
2013-14 13488 374 13737 549 366 5740 6401 18371
2014-15 11675 288 10689 103 62 5190 6404 18137
2015-16 12271 421 10482 -1417 -1421 4890 4983 17873
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Organization Structure
Chairman Cum
Managing Director
Mr. P. Madhusudan
Functional
Directors
P.C Mohapatra G.B.S. Prasad D.N. Rao T. V. S. Krishna T. K. Chand

P. Raychaudhury
Kumar Commercial
Projects Personnel Operations Commercial
Finance
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PMCI Analysis
Product
The Plant with a capacity of 3.0 Million tonnes Per annum of liquid steel has been operating much above
100% rated capacity (120% and Higher) over the Last decade. Through the plant was basically designed
to produce mild steel grades, innovative in-house improvements have helped to continuously developed
‘value added’ products to serve discerning customers. The quantum of Value added production has been
on the rise continuously over the years and is now touching 80%.
Following are the steel products produced by Rashtriya Ispat Nigam Limited.
Product mix
RINL has an enriched Mix of Products that consists of a combination of products as blooms, billets,
rounds, rebar’s, structural, wire rods etc. Under product mix following are the sub-products.
Forged Rounds
Forged Rounds of Grade EN8D, manufactured by RINL are an absolute delight to the customers.
Wire Rod Coils

Produced by STELMOR controlled-cooling process from fully killed steel, wire rod coils manufactured
by RINL are famous across the globe.
Rounds
Produced from fully killed steel, the plain rounds manufactured in RINL brings delight to the customers
all over the world.
Structurals
Structurals manufactured by RINL includes angles, channels, beams etc. of different specifications. These
are highly acclaimed all over the world.
Rebars
Higher yield strength, Ultimate tensile strength and higher percentage elongation when compared to cold
twisted bars of same grade, Rebars of RINL are Ideally suited for any type of concrete structure.
Special Steel
Special Steel including Wire rod coils, rounds, billets of different grade and dimension are manufactured
by RINL.
By products
By products include Phenol, Naptha, Benzol, Ammonium Sulphate, crude coal-tar etc.
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Marketing
The various market segment and its details for RINL products.
RINL operates in both domestic and international markets. Presence in the international markets not only
help in realizing opportunity for export of products but also in maintaining its quality standards at
international level. RINL is in the long products segment of steel markets and produces and supplies
products like TMT bars, wire rods, rounds, structural, squares and semis. The customer groups of RINL
are categorized into the following groups.
RINL
Customers
Project Industrial DLD, s Rural Export

NSIC/SSIC Retailers
Customers Users Dealers customers
RINL enters annual MOUs with domestic customers i.e. Project customers, Industrial users, Retailers,
NSIC and SSICs and Rural Dealers for supply of products. These MOUs help RINL is steady dispatches
and the customers in meeting their requirements during the years through steady supplies.
Project Customers
RINL’s products like TMT bars and structural find application in construction sector. About 25% of the
products of RINL are sold to this segment. RINL is proud to be associated with India’s prestigious projects
like Delhi Metro, Mumbai-Worli Sea Link and Express Highway Projects etc. RINL supplies to various
infrastructure projects in the country like major metro rail projects, airports, sea ports, highways, refineries,
power plants etc.
Industrial Users
RINL supplies its products like wire rods, rounds, squares and semis to manufacturing sector. The
products are supplied to various sectors like forging, fasteners, bright bars, etc. and used as raw materials
in engineering industry, automobile sector, railways etc. Various components like engine parts, shafts,
axles, pins, screws, nut, boils, gear box, electrodes, nails etc. are manufactured from these products.
Squares produced in value added grades from MMSM are used for manufacturing of TLT grade structural.
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NSIC/SSICs
Ministry of Steel allocates steel products from the main producers like SAIL, RINL and Tata Steel to the
Corporations I.e. National Small Industry Corporation (NSIC) and Small Scale Industry Corporations
(SSICs) located in various States. These supplies are in line with the policy of GOI to ensure availability
of raw materials to MSMEs. To ensure that small scale industries obtain these raw materials at reasonable
prices, the Govt. provides nominal handling charges of approximately Rs 500 to Rs 550 per tonne to the
Corporations, so that the Corporations supply steel materials at the doorstep of SSI units. In line with this,
RINL supplies steel products to NSIC and SSICs in various states.
District Level Dealers (DLDs) / Rural Dealers (RDs)
In India, about 70% of population of the country lives in rural India and potential for increasing steel
consumption in this area is huge. With a view to ensuring availability of steel in the nook and corner of the
country and realize the potential for increasing steel consumption in the rural areas, RINL introduced
District Level Dealership Scheme (DLDS) and Rural Dealership Scheme (RDS). Through this network,
the requirement of steel of semi-urban and rural customers is met. RINL has a network of over 450 DLDs
and RDs spread across the country. The company is enhancing the network on continuous basis.
Export Customers
RINL has strategic advantage of being a shore based plant. To leverage this strategic advantage, the
company gives special thrust for exporting the products to international markets. Right from the days of
integrated operations, RINL has been exporting. Within a short period, RINL established as a quality steel
exporter. In recognition of its consistent export performance RINL has been awarded Star Trading House
Status from the Ministry of Commerce, GOI. RINL has also received award in recognition of consistent
exports from Engineering Exports Promotion Council. The countries to which RINL exports its iron and
steel products are China, Nepal, Sri Lanka, Bangladesh, South Korea, New Zealand, Canada, USA,
Indonesia, South Africa, Thailand, Malaysia, Vietnam, Japan, Taiwan, Nigeria etc.
To promote exports, RINL set up an International Trading Division and opened its first International
Marketing Office (IMO) at World Trade Centre (WTO), Colombo, Sri Lanka. RINL’s semis are exported
to Sri Lanka, where these products are converted into TMT Rebars and marketed in the country.
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Company
Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India is located, 16 KM South West
of city of Destiny i.e. Visakhapatnam. Bestowed with modern technologies, Visakhapatnam Steel Plant has
an installed capacity of 3 million Tonnes per annum of Liquid Steel and 2.656 million Tonnes of saleable
steel. At Visakhapatnam Steel Plant, there is emphasis on total automation, seamless integration and
efficient up gradation, which result in wide range of long and structural products to meet stringent demands
of discerning customers within India and abroad. Visakhapatnam Steel Plant products meet exacting
International Quality Standards such as JIS, DIN, BIS, BS etc.
Visakhapatnam Steel Plant has become the first integrated Steel Plant in the country to be certified to all
the three international standards for quality (ISO-9001), for Environment Management (ISO-14001) & for
Occupational Health & Safety (OHSAS-18001). The certificate covers quality systems of all Operational,
Maintenance and Service units besides Purchase systems, Training and Marketing functions spreading over
4 Regional Marketing Offices, 24 branch offices and stock yards located all over the country.
Visakhapatnam Steel Plant Exports Quality Pig Iron & Steel products' to Sri Lanka, Myanmar, Nepal,
Middle East, USA, China and South East Asia. RINL- Visakhapatnam Steel Plant was awarded "Star
Trading House" status during 1997-2000. Having established a dependable export market, Visakhapatnam
Steel Plant plans to make a continuous presence in the export market. Having a total manpower of about
16,600 VSP has envisaged a labor productivity of 265 Tonnes per man year of Liquid Steel.
Vision
To be a continuously growing world class company we shall
 Harness our growth potential and sustain profitable growth.

 Deliver high quality and cost competitive products and be the first choice of customers.
 Create an inspiring work environment to unleash the creative energy of people.
 Achieve excellence in enterprise management.
 Be respected corporate citizen, ensure clean and green environment and develop vibrant
communities around us.
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Mission
To attain 16-million-ton liquid steel capacity through technological up-gradation, operational efficiency
and expansion; to produce steel at international standards of cost and quality; and to meet the aspirations
of the stakeholders.
Objectives
 Revamping existing Blast Furnaces to make them energy efficient to contemporary levels and
in the process, increase their capacity by 1 Mt, thus total hot metal capacity to 7.5 Mt.
 Be amongst top five lowest cost liquid steel producers in the world.
 Achieve higher levels of customer satisfaction.
 Vibrant work culture in the organization.
 Be proactive in conserving environment, maintaining high levels of safety & addressing social
concerns.
Core Values
 Commitment.
 Customer Satisfaction.
 Continuous Improvement.
 Concern for Environment.
 Creativity & Innovation.
RINL Operations
RINL operates a 6.3 million tonne per annum capacity steel plant in Visakhapatnam. During the initial
periods, the company suffered huge losses. Later the profits have gone up by 200% making it the only steel
industry to achieve such target. The firm is investing ₹125 billion (US$1.9 billion) in the first phase of
expanding its capacity, to target production of 6.3 million tonnes of steel a year by 2014.
In the next phase of its expansion, it plans to invest ₹70 billion (US$1.1 billion) to add another 4 million
tonnes to its annual capacity. In addition, it plans to invest ₹250 billion (US$3.9 billion) to add capacity to
produce 4 million tonnes of specialised steel. Its annual capacity is expected to reach almost 7.5 million
tonnes by 2015. RINL plans to invest Rs 60 crores to increase the capacity to 20 million tonnes by 2027.
RINL has successfully commissioned its next phase despite some major setbacks with blasts in its new
blast furnance.
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Industry
Introduction
India was the world’s third-largest steel producer in 2016. The growth in the Indian steel sector has been
driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently,
the steel sector has been a major contributor to India’s manufacturing output. The Indian steel industry is
very modern with state-of-the-art steel mills. It has always strived for continuous modernisation and up-
gradation of older plants and higher energy efficiency levels.
Market Size
India’s crude steel production grew by 7.4 per cent year-on-year to 95.6 Million Tonnes (MT) in 2016.
Total production of crude steel during February 2017 grew by 8.5 per cent year-on-year. India’s steel
exports grew 150.0 per cent year-on-year, while steel imports declined 46 per cent year-on-year. Total
consumption of finished steel grew by 3.4 per cent year-on-year.
Investments
Steel industry and its associated mining and metallurgy sectors have seen several major investments and
developments in the recent past. As per the data released by Department of Industrial Policy and Promotion
(DIPP), the Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$
10.15 billion, respectively, in the period April 2000– December 2016.
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a) Working Capital Management
Introduction
Working Capital Management involves managing the balance between firm’s short -term assets and its
short-term liabilities. The goal of working capital management is to ensure that the firm can continue its
operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming daily
operational expenses. The interaction between current assets and current liabilities is, therefore, the main
theme of the theory of working capital management.
There are many aspects of working capital management which makes it important function of financial
management.
1. Time: Working capital management requires much of the finance manager’s time.
2. Investment: Working capital represents a large portion of the total investment in assets.
3. Credibility: Working capital management has great significance for all firms but it is very critical
for small firms.
4. Growth: The need for working capital is directly related to the firm’s growth.
The concept of working capital can be explained in two ways
Based on value
From the value point of view, Working Capital can be defined as Gross Working Capital or Net Working
Capital.
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Gross working capital
Gross working capital refers to the firm’s investment in current assets. Current assets are those assets which
can be converted into cash within an accounting year. Current Assets include: Stocks of raw materials,
Work-in-progress, Finished goods, Trade debtors, Prepayments, Cash balances etc.
Net working capital
Net working capital refers to the difference between current assets and current liabilities. Current liabilities
are those claims of outsiders which are expected to mature for payment within an accounting year. Current
Liabilities include: Trade creditors, Accruals, Taxation payable, Bills Payables, Outstanding expenses,
Dividends payable, short term loans.
“A positive working capital means that the company can pay off its short-term liabilities. A negative working capital
means that the company currently is unable to meet its short-term liabilities”.
Based on Time
From the point of view of time, the term working capital can be divided into two categories viz., Permanent
and temporary.
Permanent working
Permanent working capital refers to the hard core working capital. It is that minimum level of investment
in the current assets that is carried by the business always to carry out minimum level of its activities.
Temporary working capital

Temporary working capital refers to that part of total working capital, which is required by a business over
and above permanent working capital. It is also called variable working capital. Since the volume of
temporary working capital keeps on fluctuating from time to time according to the business activities it
may be financed from short-term sources.
Optimum Working Capital
If a company’s current assets do not exceed its current liabilities, then it may run into trouble with creditors
that want their money quickly. If a company said to be in safe position when it’s current assets is more then
it’s current liabilities and quick assets should maintain equal to its current liabilities.
Bankers, financial institutions, financial analysts, investors and other people interested in financial
statements have, for years, considered the current assets is more then it’s current liabilities and quick assets
should maintain equal to its current liabilities.
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Determinants of Working Capital
Working capital management is concerned with: -
 Maintaining adequate working capital and

 Financing of the working capital.
Finance Manager needs to plan and compute the working capital requirement for its business. And once
the requirement has been computed he needs to ensure that it is financed properly. This whole exercise is
called as Working Capital Management. Sound financial and statistical techniques, supported by judgment
should be used to predict the quantum of working capital required at different times. Some of the
items/factors which need to be considered while planning for working capital requirement are
 Cash & Cash equivalents

 Debtors
 Short term investments
 Inventory
 Nature of Business etc.,
Issues in the Working Capital Management
Working capital management entails the control and monitoring of all components of working capital i.e.
cash, marketable securities, debtors (receivables) and stocks (inventories) and creditors (payables). Finance
manager must pay attention to the levels of current assets and their financing. To decide the levels and
financing of current assets, the risk return trade off must be considered.
Estimating Working Capital

Operating cycle is one of the most reliable methods of Computation of Working Capital. However, other
methods like ratio of sales and ratio of fixed investment may also be used to determine the Working Capital
requirements. These methods are briefly explained as follows:
Current assets holding period

To estimate working capital needs based on the average holding period of current assets and relating them
to costs based on the company’s experience in the previous year. This method is essentially based on the
Operating Cycle Concept.
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Ratio of sales
To estimate working capital needs as a ratio of sales on the assumption that current assets change with
changes in sales.
Working Capital Based on Operating Cycle

One of the methods for forecasting working capital requirement is based on the concept of operating cycle.
The operating cycle analyses the accounts receivable, inventory and accounts payable cycles in terms of
number of days.
Operating/Working Capital Cycle Definition
Working Capital cycle indicates the length of time between a company’s paying for materials, entering
stock and receiving the cash from sales of finished goods. It can be determined by adding the number of
days required for each stage in the cycle.
Working capital requirement estimation based on cash cost
To estimate requirements of working capital, we must forecast the amount required for each item of current
assets and current liabilities. In practice, another approach may also be useful in estimating working capital
requirements. This approach is based on the fact that in the case of current assets, like sundry debtors and
finished goods, etc., the exact amount of funds blocked is less than the amount of such current assets.
Ratio of fixed investments

To estimate Working Capital requirements as a percentage of fixed investments.
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My project Objective
My project is based on the study of working capital management in Rashtriya Ispat Nigam Limited (RINL) An
insight view of the project will encompass. what it is all about, what it aims to achieve, what is its purpose
and scope, the various methods used for collecting data and their sources, including literature survey.
The objectives of this project were mainly to study the Working Capital management at Rashtriya Ispat Nigam
Limited (RINL), but there are some more and they are -
 The main purpose of our study is to render a better understanding of the concept “Working Capital
Management”.
 To understand the planning and management of working capital at Rashtriya Ispat Nigam Limited (RINL)
 To measure the financial soundness of the company by analysing various ratios.
Scope of the study

 This project will be a learning opportunity as finance student.
 Through this project I would study the various methods of the working capital management.
 The project will be a learning source for me to understand how an organization plan and financing
it’s working capital.
 The project would also be an effective tool for understand credit policies of the companies.
 This project enables me to learn different methods of holding inventory and dealing with cash and
receivables.
 This will show the liquidity position of the company and how do they maintain a liquidity position.
 To understand the company performance by comparing the company ratios with Industry ratio.
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Working Capital Management rationale of the study, scope and objectives
What is 'Working Capital Management'
Working capital management refers to a company's managerial accounting strategy designed to monitor
and utilize the two components of working capital, current assets and current liabilities, to ensure the most
financially efficient operation of the company. The primary purpose of working capital management is to
make sure the company always maintains sufficient cash flow to meet its short-term operating costs and
short-term debt obligations.
Methods and methodologies adopted for the study

Research Methodology
Research is the systematic process of collecting and analyzing data to increase our understanding of the
phenomenon about which we are concerned or interested. It is the in-depth search for knowledge. It is a
careful investigation or inquiry especially through search for new facts in any branch of knowledge. The
study exhibits both descriptive and analytical character. Regarding the theoretical concept, it is descriptive
since it interprets and analysis the different sources of data to arrive at appropriate conclusion, it is also
analytical in character. The interpretation of data is done based on ratio, percentage and various statistical
methods.
Research Design
Research Design is the strategy for the study and the plan by which the strategy is to be carried out. It is
the set of decisions that make up the master plan specifying the methods and procedures for the collection,
measurement and analysis of data. Research has used descriptive research. Descriptive studies are fact
finding investigation with adequate interpretation. It focuses on aspects of in the study. It is designed to
gather descriptive information and provides information for formulating more sophisticated studies.
Data Source
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Primary Data
Primary data has been obtained through personal discussions with managers and senior officials of the
organization.
Secondary Data
Secondary data has been obtained from published reports like the annual reports of the company, balance
sheets, and profit and loss account, booklets, records such as files, reports maintained by the company.
Mainly the annual report consists of two parts:
 Profit and Loss Account

 Balance Sheet
Profit and loss account reveals the income and expenditure of the company. Balance Sheet reveals the
financial position of the organization. Those two statements are prepared by the highly qualified and
experts with the help of available information or data.
Tools Used for The Analysis
1. Ratio Analysis
2. Operating Cycle Analysis
3. Comparative Statement
4. Common Size Statement
5. Graphical presentations
6. Schedule of changing in working capital
7. Other special techniques used for the analysis
Period of Study (i.e., Sample size)
The present study deals with the data collected from the annual reports RINL and other relevant documents
for the period commencing from 2011-12 to 2015-2016.
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Finance
Accounting process being followed by the company
Financial statements are prepared under the historical cost Convention in accordance with fundamental
accounting assumptions and Generally Accepted Accounting Principles (GAAP) in India and the relevant
provisions of the Companies Act, 1956 & Companies Act, 2013 Including Accounting Standards Notified
there under.
Preparation of financial statements in conformity with Generally Accepted Accounting

Principles (GAAP) require estimates and assumptions to be made that affect the reported number of assets
and liabilities and disclosure of contingent liabilities on the data of financial statements and reported
amounts of revenue and expenses during the reporting period. Actual results could differ from these
estimates and differences between actual results and estimates are recognized in the periods in which the
results are known/materialized.
What are 'Financial Statements'
Financial statements for businesses usually include income statements, balance sheets, statements of
retained earnings and cash flows. It is standard practice for businesses to present financial statements that
adhere to generally accepted accounting principles (GAAP) to maintain continuity of information and
presentation across international borders. Financial statements are often audited by government agencies,
accountants, firms, etc. to ensure accuracy and for tax, financing or investing purposes.
Balance Sheet
The balance sheet provides an overview of assets, liabilities and stockholders' equity as a snapshot in time.
The date at the top of the balance sheet tells you when the snapshot was taken, which is generally the end
of the fiscal year. The balance sheet equation is assets equals liabilities plus stockholders' equity, because
assets are paid for with either liabilities, such as debt, or stockholders' equity, such as retained earnings and
additional paid-in capital. Assets are listed on the balance sheet in order of liquidity. Liabilities are listed
in the order in which they will be paid. Short-term or current liabilities are expected to be paid within the
year, while long-term or noncurrent liabilities are debts expected to be paid after one year.
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Income Statement
Unlike the balance sheet, the income statement covers a range of time, i.e. Monthly, Quarterly, Semi-
annually and Annually. The income statement provides an overview of revenues, expenses, net income and
earnings per share. It usually provides two to three years of data for comparison.
Cash Flow Statement
The cash flow statement merges the balance sheet and the income statement. Due to accounting
convention, net income can fall out of alignment with cash flow. The cash flow statement reconciles the
income statement with the balance sheet in three major business activities.
These activities include operating, investing and financing activities.
i) Operating activities include cash flows made from regular business operations.
ii) Investing activities include cash flows due to the buying and selling of assets such as real estate
and equipment.
iii) Financing activities include cash flows from debt and equity. This is where analysts can also
find the amount of dividends paid and/or dollar value of shares repurchased.
27
Financial information of company
Balance Sheet Rs. in crores
Particulars 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16
Equity and liabilities
Shareholders' funds
Share capital 7827.32 7727.32 6346.82 5739.85 5189.85 4889.85
Equity Share capital 4889.85 4889.85 4889.85 4889.85 4889.85 4889.85
Preference Share capital 2937.47 2837.47 1456.97 850.00 300.00 0.00
Reserves and surplus 5401.90 5931.97 6130.50 6400.89 6404.08 4983.35
Total Equity 10291.75 10821.82 11020.35 11290.74 11293.93 9873.20
Non-Current Liabilities
Long-term borrowings 79.97 83.23 1241.56 1203.53 66.52 3805.48
Deferred tax liabilities 48.59 60.98 229.20 419.01 444.89 448.30
Other Long-term Liabilities 0.00 0.00 105.00 165.56 138.27 109.81
Long-term provisions 577.82 479.73 414.77 531.43 557.14 853.59
Total Non-Current Liabilities 706.38 623.94 1990.53 2319.53 1206.82 5217.18
Current Liabilities
Short-term borrowings 1135.88 2575.14 3658.44 3739.93 7444.89 6585.64
Trade payables 540.95 390.19 737.94 829.93 600.60 733.56
Other current liabilities 2750.25 3645.84 5615.19 5484.05 6979.28 6328.91
Short-term provisions 690.77 610.44 173.10 157.65 34.61 0.00
Total Current Liabilities 5117.85 7221.61 10184.67 10211.56 15059.38 13648.11
Total 19053.45 21504.84 24652.52 24671.83 27860.13 28738.49
Assets
Non-Current Assets
Fixed assets
Tangible assets 1526.89 1783.65 3787.07 4530.03 5305.41 11826.39
Intangible assets 3.00 3.19 2.74 2.75 51.33 37.49
Capital work-in-progress 9455.01 10596.08 9965.24 10669.47 11492.98 6979.93
Under development 0.00 15.01 22.20 30.11 2.57 2.70
Goodwill on Consolidation 0.00 0.00 0.00 0.00 0.00 0.00
Non-current investments 361.60 362.58 362.58 362.53 362.53 642.59
Long-term loans and advances 297.30 241.89 498.36 616.05 926.53 649.79
Other non-current assets 7.97 10.33 36.58 60.23 81.32 100.43
Total Non-Current Assets 11651.77 13012.73 14674.77 16271.17 18222.67 20239.32
Current Assets
Inventories 3254.71 3403.11 3828.60 3863.04 5179.51 3907.50
Trade receivables 330.27 427.15 1009.65 803.65 1035.43 958.11
Cash and bank balances 1998.89 2068.34 1625.02 175.89 63.94 45.56
Short-term loans and advances 1633.89 2366.54 3417.75 3461.35 3259.83 3440.21
Other current assets 183.92 226.97 96.73 96.73 98.75 147.79
Total Current Assets 7401.68 8492.11 9977.75 8400.66 9637.46 8499.17
Total 19053.45 21504.84 24652.52 24671.83 27860.13 28738.49
28
Rs. in crores
Income Statements
Revenue from operations 11616.30 14570.19 13565.28 13461.28 10432.17 10132.90
Less: Excise duty 1045.81 1319.15 1454.59 1403.15 1117.81 1143.40
Revenue from operations (Net) 10570.49 13251.04 12110.69 12058.13 9314.36 8989.50
Other income 425.95 328.39 455.42 383.45 256.29 347.68
TOTAL INCOME 10996.44 13579.43 12566.11 12441.58 9570.65 9337.18
Cost of materials consumed 7188.36 8472.22 8098.66 6967.25 5127.54 4141.59
Changes in Inventories of Semi-
-532.32 45.37 -303.74 8.73 -820.19 1149.72
finished/Finished goods
Employees' benefits 1273.00 1466.67 1469.07 1798.66 1918.16 1923.20
Finance Costs 164.49 190.60 359.25 339.40 434.73 650.71
Depreciation and Amortization 265.94 344.86 186.88 281.30 270.63 346.81
Other expenses 1739.37 2005.97 2296.75 2499.87 2541.76 2913.15
TOTAL EXPENSES 10098.84 12525.69 12106.87 11895.21 9472.63 11125.18
Profit before Exceptional items
897.60 1053.74 459.24 546.37 98.02 -1788.00
and Tax
Less: Inter account adjustments-
-49.10 -50.03 -52.17 -0.99 0.00 0.00
raw material mining cost
Profit for the year before Prior
946.70 1103.77 511.41 547.36 98.02 -1788.00
Period Items (PPI)
Prior period items - Net credit 34.96 6.24 15.06 0.00 5.33 370.77
Profit after PPI and Before
Exceptional & Extraordinary 981.66 1110.01 526.47 547.36 103.35 -1417.23
Items and Tax
Current tax 369.10 388.20 103.98 123.00 21.70 0.00
Earlier years adjustments -28.08 -10.66 -96.88 -116.76 -21.70 0.00
Deferred Tax -17.85 -18.99 -1.69 -3.89 40.97 3.41
Tax relating to previous years 0.00 0.00 168.23 190.97 0.00 0.00
Current tax 0.00 0.00 0.00 0.00 0.00 0.00
Deferred tax 0.00 0.00 0.00 0.00 0.00 0.00
Total tax expense 323.17 358.55 173.64 193.32 40.97 3.41
Profit/(loss) after tax and before
658.49 751.46 352.83 354.04 62.38 -1420.64
minority interest
29
Cash flow Statement Rs. in crores
A. Cash flow from Operating activities 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16
Net Profit / (Loss) before taxation 981.66 1110.01 526.47 549.15 103.35 -1417.23
Add / (Less) Adjustments for:
Depreciation 268.61 347.66 187.68 271.48 262.47 -23.76
Interest and Finance Charges 164.49 190.60 359.25 338.12 435.99 651.38
Provisions 11.28 9.95 -17.20 33.84 36.24 200.02
Unrealized Foreign Exchange (Gain) /Loss -5.30 1.10 1.01 -0.07 -13.26 4.28
(Profit)/Loss on sale of fixed assets -3.26 -1.75 -0.45 -0.56 -0.46 -0.16
Finished goods consumed for capital jobs -6.65 0.00 0.00 0.00 0.00 0.00
Interest Income -307.72 -198.92 -151.26 -120.01 -0.27 -0.29
Dividend Income 0.00 -0.48 -0.13 -0.11 -0.01 0.00
Operating Profit Before working capital changes 1103.11 1458.17 905.37 1071.84 824.05 -585.76
Adjustments for
(Increase) / Decrease in Inventories -803.19 -148.40 -425.49 -34.44 -1316.47 1272.01
(Increase) / Decrease in Trade Receivables -150.11 -96.88 -582.50 206.00 -231.78 77.32
(Increase) / Decrease in Loans & Advances 119.12 52.50 -212.87 -130.01 -31.06 72.09
(Increase) / Decrease in Other Non-current assets -1.82 -2.36 -26.24 -23.65 -21.09 -19.11
(Increase) / Decrease in Other current assets -89.07 -36.46 96.65 -2.12 14.39 -35.51
Increase / (Decrease) in Liabilities -125.10 262.46 639.53 183.13 651.24 206.42
Cash generated from Operations -1050.17 30.86 -510.92 198.91 -934.77 1573.22
Less: Income Tax paid -421.25 -495.85 -143.60 -103.46 -71.35 85.25
Net cash from / (used in) Operating activities -368.31 993.18 250.85 1167.29 -182.07 1072.71
B. Cash flow from Investing activities
Purchase of Fixed Assets -2480.04 -1791.64 -1351.96 -1664.91 -2061.71 -1634.42
Investments -363.59 -156.87 152.59 0.05 -236.26 -95.90
Dividend received 0.00 0.48 0.13 0.11 0.01 0.00
Proceeds from sale of Fixed Assets 3.55 2.95 0.59 0.77 0.78 0.40
Interest received 371.03 193.97 206.42 125.57 0.27 0.29
Net cash from / (used in) Investing activities -2469.05 -1751.11 -992.23 -1538.41 -2296.91 -1729.63
C. Cash flow from Financing activities
Proceeds from / (Repayment of) Long term loans 0.00 0.00 1241.56 -38.03 2.31 2599.64
30
Proceeds from / (Repayment of) Short term loans -96.53 1439.26 1083.30 81.49 3704.96 -859.25
Proceeds from Prime Minister's Trophy Fund 1.24 0.39 1.44 0.56 0.54 0.60
Proceeds from / (Repayment of) Share capital 0.00 -100.00 -1380.50 -606.97 -550.00 -300.00
Interest and Finance charges -151.34 -196.76 -333.03 -396.16 -719.82 -802.45
Dividend Paid -285.29 -271.47 -270.79 -101.64 -60.00 0.00
Dividend Tax Paid -47.37 -44.04 -43.92 -17.26 -10.96 0.00
Net proceeds from other Bank balances 50.00 0.00 5.00 0.00 0.00 0.00
Net cash from / (used in) Financing activities -529.29 827.38 303.06 -1078.01 2367.03 638.54
Net Increase / (decrease) in Cash and Cash -3366.65 69.45 -438.32 -1449.13 -111.95 -18.38
equivalents (A+B+C)
Opening Balance of Cash and Cash equivalents 5360.54 1993.89 2063.34 1625.02 175.89 63.94
Closing Balance of Cash and Cash equivalents 1993.89 2063.34 1625.02 175.89 63.94 45.56
31
Financial Statement Analysis
The analysis and interpretation of financial statements is used to determine the financial position and result of
operations. Following are the techniques used to determine the financial position of RINL.
1. Comparative Financial statements

2. Common size Financial statements and
3. Ratio Analysis.
1) Comparative Financial Statements

A comparative statement is a document that compares a financial statement with prior period statements
through this stakeholder can compare the financial position of a firm. The comparative financial statements
can be expressed as
i) Absolute figures as given in the final accounts.
ii) Absolute figures expressed in terms of percentages.
iii) Increase or decrease in absolute value.
iv) Increase or decrease in terms of percentages.
Comparative Financial Statements includes the following two statements i.e.

i) Comparative Balance sheet, and
ii) Comparative Income statements
32
Comparative Balance sheet
Comparative Balance sheet for the Financial Years 2010-11 & 2011-12
Particulars 31-Mar-11 31-Mar-12 FY 2010-11 & 2011-12
Rs. in crores
Equity and liabilities Increases or Decreases %
Shareholders' funds
Share capital 7827.32 7727.32 -100.00 -1.28%
Equity Share capital 4889.85 4889.85 0.00 0.00%
Preference Share capital 2937.47 2837.47 -100.00 -3.40%
Reserves and surplus 5401.90 5931.97 530.07 9.81%
Total Equity 10291.75 10821.82 530.07 5.15%
Total Shareholders fund 13229.22 13659.29 430.07 3.25%
Long-term borrowings 79.97 83.23 3.26 4.08%
Deferred tax liabilities 48.59 60.98 12.39 25.50%
Other Long-term Liabilities 0.00 0.00 0.00 0.00%
Long-term provisions 577.82 479.73 -98.09 -16.98%
Total Non-Current Liabilities 706.38 623.94 -82.44 -11.67%
Current liabilities
Short-term borrowings 1135.88 2575.14 1439.26 126.71%
Trade payables 540.95 390.19 -150.76 -27.87%
Other current liabilities 2750.25 3645.84 895.59 32.56%
Short-term provisions 690.77 610.44 -80.33 -11.63%
Total Current Liabilities 5117.85 7221.61 2103.76 41.11%
Total Liabilities 19053.45 21504.84 2451.39 12.87%
Assets
Non-current assets
Fixed assets
Tangible assets 1526.89 1783.65 256.76 16.82%
Intangible assets 3.00 3.19 0.19 6.33%
Tangible assets - Capital work-in-progress 9455.01 10596.08 1141.07 12.07%
Intangible assets - Under development 0.00 15.01 15.01 150.10%
Goodwill on Consolidation 0.00 0.00 0.00 0.00%
Non-current investments 361.60 362.58 0.98 0.27%
Long-term loans and advances 297.30 241.89 -55.41 -18.64%
Other non-current assets 7.97 10.33 2.36 29.61%
Total Non-current assets 11651.77 13012.73 1360.96 11.68%
Current assets
Inventories 3254.71 3403.11 148.40 4.56%
Trade receivables 330.27 427.15 96.88 29.33%
Cash and bank balances 1998.89 2068.34 69.45 3.47%
Short-term loans and advances 1633.89 2366.54 732.65 44.84%
Other current assets 183.92 226.97 43.05 23.41%
Total Current Assets 7401.68 8492.11 1090.43 14.73%
Total 19053.45 21504.84 2451.39 12.87%
33
Chart Presentation

for the Financial Years 2010-11 & 2011-12
25000.00
150.00%
20000.00
100.00%
15000.00
Rs. In Crores
50.00%
10000.00
%
0.00%
5000.00
-50.00%
0.00
-5000.00 -100.00%
Balance Sheet Items
2010-11 2011-12 Increases or Decreases in Rs. Increases or Decreases in %
34
Interpretation
 During the Financial year 2011-12 Rs. 1141.07 Crores has been invested for enhancement of
06.30 Million tonnes of capacity. Hence tangible Assets Under development increased by
approximately at rate of 150%.
 During the Financial year 2011-12 Rs.1439.26 Crores has borrowed from banks for Working
Capital requirement in that Rs.755.22 Crores is secured by hypothecation of Current Assets,
Rs.549.68 Crores is Unsecured Loans and 134.35 Crores is by Commercial Paper.
35
Equity and liabilities Rs. in crores %
Shareholders' funds Increases or Decreases
Share capital 7727.32 6346.82 -1380.50 -17.87%
Total Equity 10821.82 11020.35 198.53 1.83%
Total Shareholders fund 13659.29 12477.32 -1181.97 -8.65%
Long-term provisions 479.73 414.77 -64.96 -13.54%
Total Non-Current Liabilities 623.94 1990.53 1366.59 219.03%
Current liabilities
Trade payables 390.19 737.94 347.75 89.12%
Assets
Non-current assets
Fixed assets
Tangible assets 1783.65 3787.07 2003.42 112.32%
Intangible assets 3.19 2.74 -0.45 -14.11%
Tangible assets - Capital work-in-progress 10596.08 9965.24 -630.84 -5.95%
Long-term loans and advances 241.89 498.36 256.47 106.03%
Current assets
Inventories 3403.11 3828.60 425.49 12.50%
Cash and bank balances 2068.34 1625.02 -443.32 -21.43%
Other current assets 226.97 96.73 -130.24 -57.38%
Total 21504.84 24652.52 3147.68 14.64%
36
Chart Presentation
30000.00 1400.00%
1200.00%
25000.00
1000.00%
20000.00
800.00%
Rs. in crores
15000.00
600.00%
10000.00
400.00%
5000.00
200.00%
0.00
0.00%
-5000.00 -200.00%
Balance Sheet items
37
Interpretation
 Long term Borrowings of Rs. 1241.56 Crores are borrowed by hypothecation of Fixed Assets
 The fixed assets for the financial year 2011-12 is Rs.12397.93 Crores and for the financial year
2012-13 is Rs. 13777.25 Crores it has been increased to 11.13% due an increase in plant and
machinery worth of Rs. 2003.42 Crores.
 The total assets for the financial year 2011-12 are Rs.21504.84 Crores and for the financial year
2012-13 is Rs. 24652.52 Crores which is increased to 14.64% due an increase in plant and
machinery worth of Rs. 2003.42 Crores.
 The current liabilities for the financial year 2011-12 is Rs.4119.26 Crores and for the financial
year 2012-13 is Rs. 6458.12 Crores which has been increased to 56.78%
38
Share capital 6346.82 5739.85 -606.97 -7.85%
Total Equity 11020.35 11290.74 270.39 2.45%
Long-term borrowings 1241.56 1203.53 -38.03 -3.06%
Long-term provisions 414.77 531.43 116.66 28.13%
Current liabilities
Trade payables 737.94 829.93 91.99 12.47%
Other current liabilities 5615.19 5484.05 -131.14 -2.34%
Assets
Non-current assets
Fixed assets
Tangible assets 3787.07 4530.03 742.96 19.62%
Tangible assets - Capital work-in-progress 9965.24 10669.47 704.23 7.07%
Non-current investments 362.58 362.53 -0.05 -0.01%
Current assets
Inventories 3828.60 3863.04 34.44 0.90%
Trade receivables 1009.65 803.65 -206.00 -20.40%
Total Current Assets 9977.75 8400.66 -1577.09 -15.81%
Total 24652.52 24671.83 19.31 0.08%
39
Chart Presentation

30000.00 100.00%
25000.00
50.00%
20000.00
Rs. In creores
0.00%
15000.00
%
10000.00
-50.00%
5000.00
-100.00%
0.00
-5000.00 -150.00%
Balance Sheet Items
40
Interpretation
 The share capital of the RINL for the financial year 2012-13 is Rs. 6346.82 Crores and for the
financial year 2013-14 is of Rs. 5739.85 Crores i.e., it is decreased of Rs. 606.97 Crores in terms of
percent it is 7.85%.
 During the financial year 2013-14 Rs.606.97 Crores of Preference share have been redeemed.
 The Fixed assets for the financial year 2012-13 is Rs.13777.25 Crores and for the financial year 2013-
14 is Rs. 15232.36 Crores which is increased to 10.56% due an increase in plant and machinery worth
of Rs. 742.96 Crores.
 In the financial year 2013-14 Cash and Cash balances are decreased drastically. Cash and Cash
balances in the financial year 2012-13 the is Rs.1625.02 Crores where in the financial year 2013-14 it
is Rs. 175.89 Crores it is decreased by Rs.1449.13 Crores in terms of percent it is 89.18%.
41
Share capital 5739.85 5189.85 -550.00 -9.58%
Total Equity 11290.74 11293.93 3.19 0.03%
Long-term borrowings 1203.53 66.52 -1137.01 -94.47%
Other Long-term Liabilities 165.56 138.27 -27.29 -16.48%
Total Non-Current Liabilities 2319.53 1206.82 -1112.71 -47.97%
Current liabilities
Trade payables 829.93 600.60 -229.33 -27.63%
Assets
Non-current assets
Fixed assets 4530.03 5305.41 775.38 17.12%
Tangible assets 2.75 51.33 48.58 1766.55%
Current assets
Inventories 3863.04 5179.51 1316.47 34.08%
Short-term loans and advances 3461.35 3259.83 -201.52 -5.82%
Total 24671.83 27860.13 3188.30 12.92%
42
Chart Presentation

30000.00 2000.00%
25000.00
1500.00%
20000.00
1000.00%
Rs. In Crores
15000.00
500.00%
%
10000.00
0.00%
5000.00
-500.00%
0.00
-5000.00 -1000.00%
Balance Sheet Items
43
Interpretation
 During the financial year 2014-15 Rs. 3704.96 Crores has borrowed from banks for Working Capital
requirement in that Rs.544.42 Crores is secured by hypothecation of Current Assets, Rs.1677.43
Crores is Unsecured Loans and Rs.1483.11 Crores is by Commercial Paper.
 During the financial year 2014-15 Rs.550 Crores of Preference share have been redeemed.
 Long Term Loan of Rs.1137.01 Crores been repaid during the financial year 2014-15
44
Shareholders' funds Rs. in crores %
Share capital 5189.85 4889.85 -300.00 -5.78%
Reserves and surplus 6404.08 4983.35 -1420.73 -22.18%
Total Equity 11293.93 9873.20 -1420.73 -12.58%
Other Long-term Liabilities 138.27 109.81 -28.46 -20.58%
Current liabilities
Short-term borrowings 7444.89 6585.64 -859.25 -11.54%
Trade payables 600.60 733.56 132.96 22.14%
Other current liabilities 6979.28 6328.91 -650.37 -9.32%
Total Current Liabilities 15059.38 13648.11 -1411.27 -9.37%
Assets
Non-current assets
Fixed assets
Tangible assets 5305.41 11826.39 6520.98 122.91%
Intangible assets 51.33 37.49 -13.84 -26.96%
Long-term loans and advances 926.53 649.79 -276.74 -29.87%
Current assets
Inventories 5179.51 3907.50 -1272.01 -24.56%
Trade receivables 1035.43 958.11 -77.32 -7.47%
Total Current Assets 9637.46 8499.17 -1138.29 -11.81%
Total 27860.13 28738.49 878.36 3.15%
45
Chart Presentation

35000.00
30000.00 5100.00%
25000.00 4100.00%
20000.00
3100.00%
Rs. In Crores
15000.00
2100.00%
%
10000.00
1100.00%
5000.00
100.00%
0.00
-5000.00 -900.00%
-10000.00 -1900.00%
Balance Sheet Items
46
Interpretation
 It is observed that in the financial year 2015-2016 the fixed assets are increased by 11.83 percent
i.e., in the financial year 2014-15 it is of Rs. 16852.29 Crores whereas in the financial year
2015-16 it is Rs. 18846.51 Crores.
 The current liabilities are decreased by 9.37 percent i.e., in the financial year 2014-15 it is of
Rs. 15059.38 Crores and in the financial year 2015-16 it is of Rs. 13648.11 Crores.
 The share capital of the RINL in the financial year 2014-15 is Rs. 5189.85 Crores and in the
financial year 2015-16 it is Rs. 4889.85 Crores i.e., it is decreased of Rs. 300 Crores
approximately in terms of percent it is 50.78%. During 2015-16
 During the financial year 2015-16 Rs.300 Crores of Preference share have been redeemed.
Hence Preference Share Capital for the financial year 2015-16 is nil.
47
Comparative Income statements
Comparative Income statement for the Financial Years FY 2010-11 & 2011-12
Rs. in crores %
Revenue from operations (Gross) 11616.30 14570.19 2953.89 25.43%
Less: Excise duty 1045.81 1319.15 273.34 26.14%
Revenue from operations (Net) 10570.49 13251.04 2680.55 25.36%
Other income 425.95 328.39 -97.56 -22.90%
Total Income 10996.44 13579.43 2582.99 23.49%
Cost of materials consumed 7188.36 8472.22 1283.86 17.86%

-532.32 45.37 577.69 -108.52%
Employees' benefits 1273.00 1466.67 193.67 15.21%
Finance Costs 164.49 190.60 26.11 15.87%
Depreciation and Amortization 265.94 344.86 78.92 29.68%
Other expenses 1739.37 2005.97 266.60 15.33%
Total Expenses 10098.84 12525.69 2426.85 24.03%
897.60 1053.74 156.14 17.40%
and Tax
Less: Inter account adjustments-raw
-49.10 -50.03 -0.93 1.89%
material mining cost
946.70 1103.77 157.07 16.59%
Period Items (PPI)
Prior period items - Net credit 34.96 6.24 -28.72 -82.15%
Exceptional & Extraordinary Items 981.66 1110.01 128.35 13.07%
and Tax
Current tax 369.10 388.20 19.10 5.17%
Earlier years adjustments -28.08 -10.66 17.42 -62.04%
Deferred Tax -17.85 -18.99 -1.14 6.39%
Tax relating to previous years 0.00 0.00 0.00 0.00%
Current tax 0.00 0.00 0.00 0.00%
Deferred tax 0.00 0.00 0.00 0.00%
Total tax expense 323.17 358.55 35.38 10.95%
658.49 751.46 92.97 14.12%
minority interest
48
Chart Presentation
Comparative Income Statement

16000.00 40.00%
14000.00 30.00%
12000.00 20.00%
10000.00
Rs. In Crores
10.00%
8000.00
0.00%
%
6000.00
-10.00%
4000.00
2000.00 -20.00%
0.00 -30.00%
-2000.00 -40.00%
Income Statemente Items
49
Interpretation
RINL operational performance has enhanced during the financial year 2011-12 when compared to its
previous performance.
 Revenue from Operations in the financial year 2011-12 has increased by 25.36% when compared to the
financial year 2010-11.
 EBIT in the financial year 2011-12 has increased by 16.53% when compared with the financial year 2010-11.
 PAT in the financial year 2011-12 has increased by 14.12% when compared with the financial year 2010-11.
50
Comparative Income statement for the Financial Years FY 2011-12 & 2012-13
Rs. in crores %
Revenue from operations (Gross) 14570.19 13565.28 -1004.91 -6.90%
Less: Excise duty 1319.15 1454.59 135.44 10.27%
Revenue from operations (Net) 13251.04 12110.69 -1140.35 -8.61%
Other income 328.39 455.42 127.03 38.68%
Total Income 13579.43 12566.11 -1013.32 -7.46%
Cost of materials consumed 8472.22 8098.66 -373.56 -4.41%

45.37 -303.74 -349.11 -769.47%
Finance Costs 190.60 359.25 168.65 88.48%
Depreciation and Amortization 344.86 186.88 -157.98 -45.81%
Other expenses 2005.97 2296.75 290.78 14.50%
Total Expenses 12525.69 12106.87 -418.82 -3.34%
1053.74 459.24 -594.50 -56.42%
and Tax
-50.03 -52.17 -2.14 4.28%
1103.77 511.41 -592.36 -53.67%
Period Items (PPI)
Prior period items - Net credit 6.24 15.06 8.82 141.35%
Exceptional & Extraordinary Items 1110.01 526.47 -583.54 -52.57%
and Tax
Current tax 388.20 103.98 -284.22 -73.21%
Earlier years adjustments -10.66 -96.88 -86.22 808.82%
Deferred Tax -18.99 -1.69 17.30 -91.10%
Current tax 0.00 0.00 0.00 0.00%
Deferred tax 0.00 0.00 0.00 0.00%
Total tax expense 358.55 173.64 -184.91 -51.57%
751.46 352.83 -398.63 -53.05%
minority interest
51
Chart Presentation
Comparative Income statement

for the Financial Years FY 2011-12 & 2012-13
16000.00 90.00%
80.00%
14000.00 70.00%
12000.00 60.00%
50.00%
10000.00 40.00%
Rs. In Crores
30.00%
8000.00 20.00%
%
6000.00 10.00%
0.00%
4000.00 -10.00%
-20.00%
2000.00 -30.00%
0.00 -40.00%
-50.00%
-2000.00 -60.00%
52
Interpretation
 RINL Performance during the financial year 2012-13 is adverse due to low production Pig Iron,
Blooms and Saleable product steel.
 Though the levels production is decreased, RINL able to maintain its profitability.
 Profits of RINL as:
Particulars Proportion of profit Increases or Decrease Increases or Decrease

to Net revenue from in Rs. (Compare with in % (Compare with
operations Previous Year) Previous Year)
EBIT 6.76% -425.85 -34.22%
PBT 4.35% -583.54 -52.57%

PAT 2.91% -398.63 -53.05%
53
Comparative Income statement for the Financial Years 2012-13 & 2013-14
Rs. in crores %
Less: Excise duty 1454.59 1403.15 -51.44 -3.54%
Other income 455.42 383.45 -71.97 -15.80%
TOTAL INCOME 12566.11 12441.58 -124.53 -0.99%

-303.74 8.73 312.47 -102.87%
Finance Costs 359.25 339.40 -19.85 -5.53%
Depreciation and Amortisation 186.88 281.30 94.42 50.52%
Other expenses 2296.75 2499.87 203.12 8.84%
TOTAL EXPENSES 12106.87 11895.21 -211.66 -1.75%
459.24 546.37 87.13 18.97%
and Tax
-52.17 -0.99 51.18 -98.10%
511.41 547.36 35.95 7.03%
period Items (PPI)
Prior period items - Net credit 15.06 0.00 -15.06 -100.00%
Exceptional & Extraordinary Items 526.47 547.36 20.89 3.97%
and Tax
Current tax 103.98 123.00 19.02 18.29%
Earlier years adjustments -96.88 -116.76 -19.88 20.52%
Deferred Tax -1.69 -3.89 -2.20 130.18%
Current tax 0.00 0.00 0.00 0.00%
Deferred tax 0.00 0.00 0.00 0.00%
Total tax expense 173.64 193.32 19.68 11.33%
352.83 354.04 1.21 0.34%
minority interest
54
Chart Presentation

16000.00 55.00%
50.00%
14000.00 45.00%
12000.00 40.00%
35.00%
10000.00 30.00%
Rs. In Creores
25.00%
8000.00 20.00%
%
6000.00 15.00%
10.00%
4000.00 5.00%
0.00%
2000.00 -5.00%
0.00 -10.00%
-15.00%
-2000.00 -20.00%
55
Interpretation
 RINL Performance during the financial year 2013-14 is adverse due to low production Pig Iron,
Blooms and Saleable product steel.
Particulars Proportion of profit Increases or Decrease Increases or Decrease

to Net revenue from in Rs. (Compare with in % (Compare with
operations Previous Year) Previous Year)
EBIT 7.35% 67.28 8.22%
PBT 4.54% 20.89 3.97%
PAT 2.94% 1.21 0.34%
 RINL Other Income has decline in the financial year 2013-14
56
Rs. in crores %
Less: Excise duty 1403.15 1117.81 -285.34 -20.34%
Other income 383.45 256.29 -127.16 -33.16%
TOTAL INCOME 12441.58 9570.65 -2870.93 -23.08%

8.73 -820.19 -828.92 -9495.07%
Finance Costs 339.40 434.73 95.33 28.09%
Depreciation and Amortization 281.30 270.63 -10.67 -3.79%
Other expenses 2499.87 2541.76 41.89 1.68%
TOTAL EXPENSES 11895.21 9472.63 -2422.58 -20.37%
546.37 98.02 -448.35 -82.06%
and Tax
-0.99 0.00 0.99 -100.00%
547.36 98.02 -449.34 -82.09%
period Items (PPI)
Exceptional & Extraordinary Items 547.36 103.35 -444.01 -81.12%
and Tax
Current tax 123.00 21.70 -101.30 -82.36%
Earlier years adjustments -116.76 -21.70 95.06 -81.41%
Deferred Tax -3.89 40.97 44.86 -1153.21%
Tax relating to previous years 190.97 0.00 -190.97 0.00%
Current tax 0.00 0.00 0.00 0.00%
Deferred tax 0.00 0.00 0.00 0.00%
354.04 62.38 -291.66 -82.38%
minority interest
57
Chart Presentation

16000.00
35.00%
14000.00 25.00%
12000.00 15.00%
10000.00 5.00%
-5.00%
8000.00
Rs. In Crores
-15.00%
6000.00
%
-25.00%
4000.00 -35.00%
2000.00 -45.00%
-55.00%
0.00
-65.00%
-2000.00 -75.00%
-4000.00 -85.00%
58
Interpretation
 RINL Performance during the financial year 2014-15 is adverse due to low production Pig
Iron, Blooms and Saleable product steel.
Particulars Proportion of profit to Net Increases or Decrease in Rs. Increases or Decrease in %

revenue from operations (Compare with Previous Year) (Compare with Previous Year)
EBIT 5.72% -353.02 -39.85%
PBT 1.11% -444.01 -81.12%
PAT 0.67% -291.66 -82.38%
 RINL Other Income has decline in the financial year 2014-15
59
Rs. in crores %
Less: Excise duty 1117.81 1143.40 25.59 2.29%
Other income 256.29 347.68 91.39 35.66%
TOTAL INCOME 9570.65 9337.18 -233.47 -2.44%

-820.19 1149.72 1969.91 -240.18%
Finance Costs 434.73 650.71 215.98 49.68%
Depreciation and Amortization 270.63 346.81 76.18 28.15%
Other expenses 2541.76 2913.15 371.39 14.61%
TOTAL EXPENSES 9472.63 11125.18 1652.55 17.45%
98.02 -1788.00 -1886.02 -1924.12%
and Tax
0.00 0.00 0.00 0.00%
98.02 -1788.00 -1886.02 -1924.12%
period Items (PPI)
Exceptional & Extraordinary Items 103.35 -1417.23 -1520.58 -1471.29%
and Tax
Current tax 21.70 0.00 -21.70 -100.00%
Earlier years adjustments -21.70 0.00 21.70 -100.00%
Deferred Tax 40.97 3.41 -37.56 -91.68%
Current tax 0.00 0.00 0.00 0.00%
Deferred tax 0.00 0.00 0.00 0.00%
62.38 -1420.64 -1483.02 -2377.40%
minority interest
60
Chart Presentation

12000.00
100.00%
10000.00
-400.00%
8000.00
6000.00
Rs. In Crores
-900.00%
4000.00
%
2000.00 -1400.00%
0.00
-1900.00%
-2000.00
-4000.00 -2400.00%
61
Interpretation
 RINL performance during the financial year 2015-16 has drop down by Rs.233.47 Crores
and contrast increase in expenditure of Rs.1652.55 Crores as an impacted the profit of the
firm.
Particulars Proportion of profit to Net Increases or Decrease in Rs. Increases or Decrease in

revenue from operations (Compare with Previous Year) % (Compare with Previous
Year)
EBIT -12.65% -1670.04 -313.48%
PBT -15.77% -1520.58 -1471.29%
PAT -15.80% -1483.02 -2377.40%
62
2) Common size Financial Statements
Common size statements usually are prepared for the income statement and balance sheet; these
statements are also known as component parentage or 100% statements because every individual item
is stated as a percentage of the total 100.expressing information as follows:
i) Income statement items are expressed as a percentage of total revenue.

ii) Balance sheet items are expressed as a percentage of total assets.
63
Common Size Balance Sheet Rs. in crores

Equity and Rs. Rs. Rs. Rs. Rs. Rs.
In Crores
% In Crores
% In Crores
% In Crores
% In Crores
% In Crores
%
Liabilities
Shareholders
‘funds
Equity Share capital 4889.85 25.66% 4889.85 22.74% 4889.85 19.84% 4889.85 19.82% 4889.85 17.55% 4889.85 17.01%
Preference Share
2937.47 15.42% 2837.47 13.19% 1456.97 5.91% 850.00 3.45% 300.00 1.08% 0.00 0.00%
capital
Reserves and surplus 5401.90 28.35% 5931.97 27.58% 6130.50 24.87% 6400.89 25.94% 6404.08 22.99% 4983.35 17.34%
Total Equity 10291.75 54.02% 10821.82 50.32% 11020.35 44.70% 11290.74 45.76% 11293.93 40.54% 9873.20 34.36%
Total 13229.22 69.43% 13659.29 63.52% 12477.32 50.61% 12140.74 49.21% 11593.93 41.61% 9873.20 34.36%
Non-Current
Liabilities
Long-term borrowings 79.97 0.42% 83.23 0.39% 1241.56 5.04% 1203.53 4.88% 66.52 0.24% 3805.48 13.24%
Deferred tax liabilities 48.59 0.26% 60.98 0.28% 229.20 0.93% 419.01 1.70% 444.89 1.60% 448.30 1.56%
Other Long-term
0.00 0.00% 0.00 0.00% 105.00 0.43% 165.56 0.67% 138.27 0.50% 109.81 0.38%
Liabilities
Long-term provisions 577.82 3.03% 479.73 2.23% 414.77 1.68% 531.43 2.15% 557.14 2.00% 853.59 2.97%
Total 706.38 3.71% 623.94 2.90% 1990.53 8.07% 2319.53 9.40% 1206.82 4.33% 5217.18 18.15%
Current Liabilities
Short-term borrowings 1135.88 5.96% 2575.14 11.97% 3658.44 14.84% 3739.93 15.16% 7444.89 26.72% 6585.64 22.92%
Trade payables 540.95 2.84% 390.19 1.81% 737.94 2.99% 829.93 3.36% 600.60 2.16% 733.56 2.55%
Other current liabilities 2750.25 14.43% 3645.84 16.95% 5615.19 22.78% 5484.05 22.23% 6979.28 25.05% 6328.91 22.02%
Short-term provisions 690.77 3.63% 610.44 2.84% 173.10 0.70% 157.65 0.64% 34.61 0.12% 0.00 0.00%
Total 5117.85 26.86% 7221.61 33.58% 10184.67 41.31% 10211.56 41.39% 15059.38 54.05% 13648.11 47.49%
Total Liabilities 19053.45 100.00% 21504.84 100.00% 24652.52 100.00% 24671.83 100.00% 27860.13 100.00% 28738.49 100.00%
64
Liabilities
100% 3.63% 2.84% 0.70% 0.64% 0.12% 0.00%
14.43% 16.95% 22.78% 22.23% 25.05% 22.02%
2.84% 1.81%
90% 5.96% 2.99% 3.36% 2.55%
11.97% 2.16%
14.84% 15.16% 22.92%
30.57% 26.72%
80% 36.48%
3.71%
3.03%
0.00%
0.26%
0.42% 49.39% 50.79%
2.90%
2.23%
70% 0.00%
0.28%
0.39%
65.64%
58.39%
69.43% 8.07% 9.40%
60% 1.68%
0.43%
0.93% 2.15%
5.04% 0.67%
1.70%
63.52% 4.88%
4.33%
2.00%
0.50%
1.60%
0.24% 18.15%
50%
%
50.61% 49.21% 2.97%

0.38%
1.56%
13.24%
41.61%
40%
54.02%
50.32% 34.36%
30% 44.70% 45.76%
40.54%
20% 28.35% 34.36%
27.58%
24.87% 25.94%
15.42% 22.99%
13.19%
10% 5.91% 17.34%
3.45% 1.08% 0.00%
25.66% 22.74% 19.84% 19.82% 17.55% 17.01%
0%
31-03-2011 31-03-2012 31-03-2013 31-03-2014 31-03-2015 31-03-2016
Years
Equity Share capital Perference Share capital Reserves and surplus Total Equity Total Share holders fund
Long-term borrowings Deferred tax liabilities Other Long-term Liabilities Long-term provisions Total Non Current Liabilities
Current Liabilities Short-term borrowings Trade payables Other current liabilities Short-term provisions
65
Assets 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16
Rs. Rs. Rs. Rs. Rs. Rs.
Non-Current Assets
In Crores
% In Crores
% In Crores
% In Crores
% In Crores
% In Crores
%
Fixed Assets
Tangible assets 1526.89 8.01% 1783.65 8.29% 3787.07 15.36% 4530.03 18.36% 5305.41 19.04% 11826.39 41.15%
Intangible assets 3.00 0.02% 3.19 0.01% 2.74 0.01% 2.75 0.01% 51.33 0.18% 37.49 0.13%
Tangible assets -
Capital work-in- 9455.01 49.62% 10596.08 49.27% 9965.24 40.42% 10669.47 43.25% 11492.98 41.25% 6979.93 24.29%
progress
Intangible assets -
0.00 0.00% 15.01 0.07% 22.20 0.09% 30.11 0.12% 2.57 0.01% 2.70 0.01%
Under development
Goodwill on
0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00%
Consolidation
Non-current
361.60 1.90% 362.58 1.69% 362.58 1.47% 362.53 1.47% 362.53 1.30% 642.59 2.24%
investments
Long-term loans and
297.30 1.56% 241.89 1.12% 498.36 2.02% 616.05 2.50% 926.53 3.33% 649.79 2.26%
advances
Other non-current
7.97 0.04% 10.33 0.05% 36.58 0.15% 60.23 0.24% 81.32 0.29% 100.43 0.35%
assets
Total 11651.77 61.15% 13012.73 60.51% 14674.77 59.53% 16271.17 65.95% 18222.67 65.41% 20239.32 70.43%
Current Assets
Inventories 3254.71 17.08% 3403.11 15.82% 3828.60 15.53% 3863.04 15.66% 5179.51 18.59% 3907.50 13.60%
Trade receivables 330.27 1.73% 427.15 1.99% 1009.65 4.10% 803.65 3.26% 1035.43 3.72% 958.11 3.33%
Cash and bank
1998.89 10.49% 2068.34 9.62% 1625.02 6.59% 175.89 0.71% 63.94 0.23% 45.56 0.16%
balances
Short-term loans and
1633.89 8.58% 2366.54 11.00% 3417.75 13.86% 3461.35 14.03% 3259.83 11.70% 3440.21 11.97%
advances
Other current assets 183.92 0.97% 226.97 1.06% 96.73 0.39% 96.73 0.39% 98.75 0.35% 147.79 0.51%
Total 7401.68 38.85% 8492.11 39.49% 9977.75 40.47% 8400.66 34.05% 9637.46 34.59% 8499.17 29.57%
Total Assets 19053.45 100.00% 21504.84 100.00% 24652.52 100.00% 24671.83 100.00% 27860.13 100.00% 28738.49 100.00%
66
Assets
100%
34.05% 34.59% 29.57%

90% 38.85% 39.49% 40.47%
0.51%
0.39% 0.35% 11.97%
80% 0.97% 1.06% 0.39% 14.03% 11.70% 0.16%
8.58% 11.00% 0.23% 3.33%
13.86% 0.71%
3.26% 3.72%
10.49% 13.60%
70% 1.73% 9.62% 6.59%
1.99% 4.10% 15.66% 18.59%
17.08% 15.82% 15.53%
60%
70.43%
50%
%
65.95% 65.41%
61.15% 60.51% 59.53%
40%
0.35%
2.26%
0.24%
2.50% 0.29% 2.24%
0.01%
30% 0.04%
1.56% 0.05%
1.12% 0.15% 1.47%
0.12% 3.33%
0.29%
0.01%
1.90%
0.00% 1.69%
0.07% 2.02%
1.47%
0.09% 24.29%
20% 43.25% 41.25% 0.13%
49.62% 49.27% 40.42%
10% 0.01% 0.18% 41.15%

0.01%
0.02% 0.01% 15.36% 18.36% 19.04%
8.01% 8.29%
0%
31-03-2011 31-03-2012 31-03-2013 31-03-2014 31-03-2015 31-03-2016
Years
Tangible assets Intangible assets Tangible assets - Capital work-in-progress

Intangible assets - Under development Non-current investments Long-term loans and advances
Other non-current assets Total Non-current assets Inventories
Trade receivables Cash and bank balances Short-term loans and advances
67
Interpretation
 During past six financial years of RINL had changes in its capital structure, the proportion
debt and the shareholders fund are continuously changing year on year the total
shareholders’ funds are decreasing at CAGR -13.13% where total debt is increasing at a
CAGR 16.52 %.
 RINL, s Long term borrowings are continuously increasing at CAGR 99.43% Year-on-
Year.
 RINL, s Short term borrowings are continuously increasing at CAGR 30.90% Year-on-
Year.
 RINL, s Preference Shares are 100 % Redeemed during past six financial years therefore
there is no preference share capital during the financial year 2015-16.
 RINL, s Tangible Assets are continuously increasing at CAGR 38.71% Year-on-Year.
 RINL, s Intangible Assets are continuously increasing at CAGR 52.64% Year-on-Year.
 RINL, s Cash and Cash Balance are continuously decreasing at CAGR -56.76% Year-on-
Year.
68
Common Size Income Statements
Rs. Rs. Rs. Rs. Rs. Rs.
In Crores
% In Crores
% In Crores
% In Crores
% In Crores
%
In Crores
%
Revenue from operations 11616.30 109.89% 14570.19 109.96% 13565.28 112.01% 13461.28 111.64% 10432.17 112.00% 10132.90 112.72%
Less: Excise duty 1045.81 9.89% 1319.15 9.96% 1454.59 12.01% 1403.15 11.64% 1117.81 12.00% 1143.40 12.72%
Revenue from operations 10570.49 100.00% 13251.04 100.00% 12110.69 100.00% 12058.13 100.00% 9314.36 100.00% 8989.50 100.00%
Other income 425.95 4.03% 328.39 2.48% 455.42 3.76% 383.45 3.18% 256.29 2.75% 347.68 3.87%
Total Income 10996.44 104.03% 13579.43 102.48% 12566.11 103.76% 12441.58 103.18% 9570.65 102.75% 9337.18 103.87%
Cost of materials consumed 7188.36 68.00% 8472.22 63.94% 8098.66 66.87% 6967.25 57.78% 5127.54 55.05% 4141.59 46.07%
Changes in Inventories of
Semi-finished/Finished -532.32 -5.04% 45.37 0.34% -303.74 -2.51% 8.73 0.07% -820.19 -8.81% 1149.72 12.79%
goods
Employees' benefits 1273.00 12.04% 1466.67 11.07% 1469.07 12.13% 1798.66 14.92% 1918.16 20.59% 1923.20 21.39%
Finance Costs 164.49 1.56% 190.60 1.44% 359.25 2.97% 339.40 2.81% 434.73 4.67% 650.71 7.24%
Depreciation and
265.94 2.52% 344.86 2.60% 186.88 1.54% 281.30 2.33% 270.63 2.91% 346.81 3.86%
Amortization
Other expenses 1739.37 16.45% 2005.97 15.14% 2296.75 18.96% 2499.87 20.73% 2541.76 27.29% 2913.15 32.41%
Total Expenses 10098.84 95.54% 12525.69 94.53% 12106.87 99.97% 11895.21 98.65% 9472.63 101.70% 11125.18 123.76%
Profit before Exceptional
897.60 8.49% 1053.74 7.95% 459.24 3.79% 546.37 4.53% 98.02 1.05% -1788.00 -19.89%
items & Tax
Less: Inter account
adjustments-raw material -49.10 -0.46% -50.03 -0.38% -52.17 -0.43% -0.99 -0.01% 0.00 0.00% 0.00 0.00%
mining cost
Profit for the year before
946.70 8.96% 1103.77 8.33% 511.41 4.22% 547.36 4.54% 98.02 1.05% -1788.00 -19.89%
Prior Period Items (PPI)
Prior period items - Net
34.96 0.33% 6.24 0.05% 15.06 0.12% 0.00 0.00% 5.33 0.06% 370.77 4.12%
credit
Profit after PPI and
Before Exceptional &
981.66 9.29% 1110.01 8.38% 526.47 4.35% 547.36 4.54% 103.35 1.11% -1417.23 -15.77%
Extraordinary Items and
Tax
Current tax 369.10 3.49% 388.20 2.93% 103.98 0.86% 123.00 1.02% 21.70 0.23% 0.00 0.00%
Earlier years adjustments -28.08 -0.27% -10.66 -0.08% -96.88 -0.80% -116.76 -0.97% -21.70 -0.23% 0.00 0.00%
Deferred Tax -17.85 -0.17% -18.99 -0.14% -1.69 -0.01% -3.89 -0.03% 40.97 0.44% 3.41 0.04%
Tax relating to previous
0.00 0.00% 0.00 0.00% 168.23 1.39% 190.97 1.58% 0.00 0.00% 0.00 0.00%
years
Total tax expense 323.17 3.06% 358.55 2.71% 173.64 1.43% 193.32 1.60% 40.97 0.44% 3.41 0.04%
Profit/(loss) after tax and
658.49 6.23% 751.46 5.67% 352.83 2.91% 354.04 2.94% 62.38 0.67% -1420.64 -15.80%
before minority interest
69
Ratio Analysis
Ratio analysis is used to evaluate various aspects of a company's operating and financial performance such
as its efficiency, liquidity, profitability and solvency. The trend of these ratios over time is studied to check
whether they are improving or deteriorating. As a tool of financial management, ratios are significance.
The importance of ratio analysis is comparative and enables to draw inference regarding the performance
of a firm. Ratio analysis is relevant in assessing the performance of a firm in respect to the following
aspects.
1. Liquidity position
2. Long-term solvency
3. Operational efficiency
4. Overall profitability
5. Inter-firm comparison, and
Ratio Analysis-Limitations:
Ratio Analysis is a widely-used tool of financial analysis. Yet, it suffers from various limitations. The
operational implication of this is that while using ratios, the conclusions should not be taken on their face
value. Some of the limitations, which characterize ratio analysis, are
i) Difficulty in comparison.
ii) Impact of Inflation, and
iii) Conceptual Diversity
70
Profitability Ratio
Gross Profit ratio
Gross profit margin is a financial metric used to assess a company's financial health and business model
by revealing the proportion of money left over from revenues after accounting for the Cost of goods sold
(COGS).
Interpretation
 RINL Gross Profit has decrease due to decline in the domestic steel consumption, which was a robust
11.9 per cent during Financial Year 2011-2012, declined 2.4 per cent each year over the last two years
due to a slump in construction, capital goods and automobile industries Capacity utilisation in India
fell to 81 per cent in Financial Year 14-15 & 15-16
Particulars Particulars Mar' 11 Mar' 12 Mar' 13 Mar' 14 Mar' 15 Mar' 16
Gross Profit 1147.00 1301.00 886.00 887.00 538.00 -766.00
Gross Profit Net Sales 10570.49 13251.04 12110.69 12058.13 9314.36 8989.50
Margin (%)
Gross profit/Net 10.85% 9.82% 7.32% 7.36% 5.78% -8.52%
sales*100
Operating Profit Ratio

The operating profit margin ratio indicates how much profit a company makes after paying for variable
costs of production such as wages, raw materials, etc.
Interpretation
 RINL Operating profit to Net sales has decreased during 6 years, due to decline in the demand for
domestic production of steel and raise in the imports from other countries Steel products. Specially
imports from China rose by almost 70% in the financial year 15-16 that is due Chinese steel prices
are much lower than Indian steel prices.
Particulars Particulars Mar’11 Mar' 12 Mar' 13 Mar' 14 Mar' 15 Mar' 16

Operating profit 471.65 725.35 3.82 162.92 -158.27 -2135.68
Operating Net Sales 10570.49 13251.04 12110.69 12058.13 9314.36 8989.50
profit Ratio
(Operating profit/Net 13.36% 12.42% 8.86% 9.69% 8.68% -4.67%
Sales) *100
71
Net Profit Ratio
The net profit percentage is the ratio of after-tax profits to net sales. It reveals the remaining profit after all
costs of production, administration, and financing have been deducted from sales, and income taxes
recognized.
Interpretation
 RINL has negative profits During the financial years 2015-16 due to following reasons
 An increase in the expenditure items such as Employee benefits, Finance cost and Other
expenditure.
 A sudden fall in the Operational Revenue.
 Decline in demand for domestic steel consumption.

Net profit 658.49 751.46 352.83 354.04 62.38 -1420.64
Net Profit Net Sales 10570.49 13251.04 12110.69 12058.13 9314.36 8989.50
Margin (%)
Net profit/Net 6.23% 5.67% 2.91% 2.94% 0.67% -15.80%
sales*100(PAT)
Return on Equity
Return on equity (ROE) is a measure of profitability that calculates how many Rs. of profit a company
generates with each Rs. of shareholders' equity.
Interpretation
 RINL has negative profits During the financial years 2015-16 due to following reasons
 An increase in the expenditure items such as Employee benefits and Other expenditure.

EAT 658.49 751.46 352.83 354.04 62.38 -1420.64
Return on 10291.75 10821.82 11020.35 11290.74 11293.93 9873.20
Equity
Equity
(EAT/Equity) *100 6.40% 6.94% 3.20% 3.14% 0.55% -14.39%
72
Return on capital employed
Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the
efficiency with which its capital is employed.
Interpretation
 RINL Performance in 2016 has decline due to underutilization of capacity.

EBIT 1062.09 1244.34 818.49 885.77 532.75 -1137.29
Return on
Capital employed 13935.6 14283.23 14467.85 14460.27 12800.75 15090.38
capital
employed (EBIT/capital 7.62% 8.71% 5.66% 6.13% 4.16% -7.54%
employed) *100
DuPont analysis
According to DuPont analysis, ROE is affected by three things: operating efficiency, which is measured
by profit margin; asset use efficiency, which is measured by total asset turnover; and financial leverage,
which is measured by the equity multiplier. Therefore, DuPont analysis is represented in mathematical form
by the following calculation:
ROE = Profit Margin x Asset Turnover Ratio x Equity Multiplier.

Net Profit Margin Net profit/Net sales 0.062 0.056 0.029 0.029 0.007 -0.158
Assets Turnover
Net Sales / Total Assets 0.55 0.62 0.49 0.49 0.33 0.31
Ratio
Equity Multiplier
Total Assets/Total Equity 1.85 1.99 2.24 2.19 2.47 2.91
(Profit margin x Asset
ROE (Dew Point Turnover Ratio X Equity 6.40% 6.94% 3.20% 3.14% 0.55% -14.39%
Analysis) Multiplier) *100
Interpretation
 RINL has negative profits from past 2 financial years due to following reasons
73
Capital Structure Ratio
Debt to Equity Ratio

Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated by dividing a
company's total liabilities by its stockholders' equity.
Interpretation
 RINL continues Increasing in the debt, because it enhances its the plant capacity.

Total Debt 4555.64 6755.38 11587.33 11842.01 15674.45 18011.7
Debt to Total Equity 10291.75 10821.82 11020.35 11290.74 11293.93 9873.20
Equity Ratio Total Debt/Total 0.34 0.49 0.93 0.98 1.35 1.82
Equity
Debt to Capital Employed

The debt-to-capital ratio is a refinement of the debt-to-assets ratio. It measures how much of the capital
employed (i.e. the resources on which the company pays a cost) is debt.
Interpretation
 RINL continues Increasing in the debt, because it enhances its the plant capacity.

Total Debt 4555.64 6755.38 11587.33 11842.01 15674.45 18011.7
Debt to Capital Capital employed 13935.6 14283.23 14467.85 14460.27 12800.75 15090.38
Employed Total Debt/Capital 0.33 0.47 0.80 0.82 1.22 1.19
employed
74
Capital gearing ratio
Capital gearing ratio is a useful tool to analyze the capital structure of a company and is computed by
dividing the common stockholders' equity by fixed interest or dividend bearing funds.
Interpretation
 RINL has sourcing its capital through outside borrowings it leads to increase high financial cost.

Out siders Funds 3066.03 2981.68 2927.73 2472.54 811.41 4253.78
Capital Owner, s Fund 10291.75 10821.82 11020.35 11290.74 11293.93 9873.20
Gearing Ratio Out siders Funds / 0.30 0.28 0.27 0.22 0.07 0.43
Owner, s Fund
Coverage ratios
Coverage ratios are a useful way to help measure Systematic and Un-systematic Riske.
Interest coverage ratio
The interest coverage ratio measures the ability of a company to pay the interest expense on its debt.
Interpretation
 RINL Earnings before interest and taxes are decreased due to following reasons
 Decline in domestic steel consumption.

EBIT 1062.09 1244.34 818.49 885.77 532.75 -1137.29
Interest Coverage Finance Costs 164.49 190.60 359.25 339.40 434.73 650.71
EBIT/Financial Cost 6.46 6.53 2.28 2.61 1.23 -1.75
75
Working capital Management in RINL
Working capital is the measure of cash and liquid assets available to fund a company's day-to-day
operations. Having this information can help you manage your business and make good investment
decisions. By calculating working capital, you can determine if, and for how long, a business will be able
to meet its current obligations. A company with little or no working capital is probably not one with a bright
future. Calculating working capital is also useful for assessing whether a business is making efficient use of
its resources.
The study of working capital management at Rashtriya Ispat Nigam Limited (RINL) the corporate entity
of Visakhapatnam Steel Plant, for the past eight weeks. I enhanced my knowledge how a manufacturing
firm manages its working capital to continues its day to day activities. During my eight weeks’ internship
program, I absorbed that the firm’s working capital decreased at CAGR by -217.66% for the past six
financial years i.e. from 2010-11 to 2015-16.
From the following information, ratio and graphs, we can have a brief understanding on RINL’s working
capital management.
Rs. in Crores
Particulars Mar’11 Mar' 12 Mar' 13 Mar' 14 Mar' 15 Mar' 16
Current Assets 7401.68 8492.11 9977.75 8400.66 9637.46 8499.17
Current Liabilities 5117.85 7221.61 10184.67 10211.56 15059.38 13648.11
Working Capital 2283.83 1270.5 -206.92 -1810.9 -5421.92 -5148.94
Working Capital
20000
15059.38
15000 13648.11
9977.75 10184.67 10211.56 9637.46
8492.11 8400.66 8499.17
Rs. In Crores
10000 7401.68 7221.61

5117.85
2283.83 1270.5
5000
0
Mar'11 Mar' 12 Mar' 13 Mar' 14 Mar' 15 Mar' 16
-5000 -206.92
-1810.9
-10000 -5421.92 -5148.94
Years
Current Assets Current Liabilities Working capital

Linear (Working capital ) Linear (Working capital )
76
Working Capital Turnover
The working Capital Turnover ratio shows the relationship between the funds used to finance a company’s
operations and the revenues a company generates because of conducting these operations. A higher working
capital turnover ratio indicates that a company generates a higher repuees amount sales for every repuees used.
The working capital turnover ratio is also referred to as net revenue to working capital. It indicates a company's
effectiveness in using its working capital. The working capital turnover ratio is calculated as follows: net annual
sales divided by the average amount of working capital during the same 12-month period.

Net Revenue 10570.49 13251.04 12110.69 12058.13 9314.36 8989.50
working capital 2283.83 1270.5 -206.92 -1810.9 -5421.92 -5148.94
Working Capital
turnover ratio
Net Revenue/Working 4.63 10.43 -58.53 -6.66 -1.72 -1.75
Capital
Interpretation
 Working Capital turnover ratio of RINL has decline due to decline in Cash and Cash Balance and
other current assets with a contrast increase in Current Liabilities.
Sources of Funds
Major sources of fund for RINL is Revenue from operations, Non-operational Income, outside borrowings
such as long and short term borrowings, trade payables, foreign exchange forward contracts there are many
sources to pool funds. Following are major financial institution providing loans to RINL from past five
financial years. There are 26 banks in total.
1) Bank of India 2) State Bank of India 3) Bank of Baroda 4) Canara Bank

5) State Bank of Hyderabad 6) Allahabad Bank 7) IDBI Bank 8) UCO Bank
9) Union Bank 10) Axis Bank 11) Indusind Bank 12) HDFC Bank
13) Deutsche Bank 14) Bank of Tokyo (Mitsubishi) 15) ICICI Bank 16) Citi Bank
17) Standard Chartered Bank 18) Andhra Bank 19) HSBC Bank 20) Vijaya Bank
21) Kotak Mahindra Bank 22) DBS Bank 23) Yes, Bank 24) ANZ Bank
25) United Overseas Bank 26) EXIM Bank
77
There are many services these banks are providing to Steel Plant. Following are some of the services which
are offered and availed by steel plant. These services will supplement thee funds for Working Capital
Requirement, Short term and Long term borrowings. The only reason where the existence of Banks comes
into picture only when the working Capital turns negative for short term borrowings. Some of them are as
follows:
 Over Draft
 Cash Credit
 Short term Loans
 Exchange Traded Instruments
 Buyers Credit
These some of the services availed by Steel Plant. Theory for each are explained as follows.
Over draft and Cash Credit

Over draft and Cash Credit runs on the same plane with a minute difference. Over Draft is credit given for
any transaction which is above the bank balance. This is given by bank to its clients basing on their
reputation and relationship with the bank. Cash credit are commonly offered for businesses than
individuals. They require that a security be offered up as collateral on the account in exchange for cash.
This security can be a tangible asset, such as Inventory, Account receivable or some other commodity. The
credit limit extended on the cash credit account is normally a percentage of the value of the security offered.
Short term borrowings or Short term loans
Short term loans are normal loans which are to be repaid within 12 months. And term loans are for more
than one calendar year. These were taken keeping security like assets, bonds etc. Exchange traded fund is
an investment fund traded on stock exchanges, much like stocks. An ETF holds assets, commodities, or
bonds, and trades close to its net asset value over the course of trading day. Most ETFs track an index, such
as a stock index or bond index.
Buyer Credit
Buyer Credit is a short-term credit available to an importer (buyer) from overseas lenders such as banks
and other financial institution for goods they are importing. The overseas banks usually lend the importer
(buyer) based on the letter of comfort (a bank guarantee) issued by the importer’s bank.
78
Apart from the above services and available options there are 4 more important debt instruments where a
detailed study has been done in this project and they are as follows:
 Commercial Papers
 Non-convertible Debentures
 External Commercial Borrowings
 Term Loans
Commercial Papers
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.
It was introduced with a view to enabling highly rated corporate borrowers to diversify their sources of
short-term borrowings and to provide an additional instrument to investors and used as financing of
accounts receivable, inventories and meeting short-term liabilities.
Non-convertible debentures
Non-convertible debentures are unsecured bonds that cannot be converted to company equity or
stock. Non-convertible debentures usually have higher interest rates than convertible debentures. A fixed
deposit is an arrangement with a bank where a depositor places money in the bank and is paid a regular
fixed profit.
External Commercial Borrowings
External commercial borrowing (India) External commercial borrowing (ECBs) are loans in India made
by non-resident lenders in foreign currency to Indian borrowers. They are used widely in India to facilitate
access to foreign money by Indian corporations and PSUs (public sector undertakings) like RINL.
Term Loans
A term loan is a monetary loan that is repaid in regular payments over a set period. Term loans usually
last between one and ten years, but may last if 30 years in some cases. A term loan usually involves an
unfixed interest rate that will add additional balance to be repaid.
79
Liquidity Ratio
Liquidity ratios are the ratios that measure the ability of a company to meet its short-term debt obligations.
These ratios measure the ability of a company to pay off its short-term liabilities when they fall due. They
show the number of times the short-term debt obligations are covered Current assets.
Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term
obligations. To measure this ability, the current ratio considers the current total assets of a company (both
liquid and illiquid) relative to that company’s current total liabilities.
 RINL current ratio has decline trend due to decrease in current assets such as Cash and bank
balances from 2013 in contrast an increase in Current liabilities such as Short-term borrowings &
Other current liabilities.

Current Assets 7401.68 8492.11 9977.75 8400.66 9637.46 8499.17
Current Liabilities 5117.85 7221.61 10184.67 10211.56 15059.38 13648.11
Current ratio Current
Assets/Current 1.45 1.18 0.98 0.82 0.64 0.62
Liability
Current ratio
1.60
1.40
1.20
1.00
Rs.In Crores
0.80
1.45
0.60 1.18
0.98
0.40 0.82
0.64 0.62
0.20
0.00
Years
80
Quick Ratio
The quick ratio also known as the acid-test ratio, is a measure of how well a company can meet its short-term
financial liabilities.
Interpretation
 RINL current ratio has decline trend due to decrease in current assets such as Cash and bank
balances from 2013 in contrast an increase in Current liabilities such as Short-term borrowings &
Other current liabilities.

Quick Assets 4146.97 5089.00 6149.15 4537.62 4457.95 4591.67
Quick Ratio Current Liabilities 5117.85 7221.61 10184.67 10211.56 15059.38 13648.11
Quick Assets/Current
0.81 0.70 0.60 0.44 0.30 0.34
Liability
Quick Ratio
0.90
0.80
0.70
0.60
Rs. In Crores
0.50
0.40 0.81
0.70
0.30 0.60
0.44
0.20
0.34
0.30
0.10
0.00
Years
81
Cash Ratio
The cash ratio is the ratio of a company's total cash and cash equivalents to its current liabilities. The
metric calculates a company's ability to repay its short-term debt.
Interpretation
 Cash and Bank Balance of RINL is exhausting at greater rate, therefore it has adverse effect on
Working capital.
 RINL is fully depend on Short term Loans for day to day Operation.

Cash and cash equivalents 1998.89 2068.34 1625.02 175.89 63.94 45.56
Cash Ratio Current Liabilities 5117.85 7221.61 10184.67 10211.56 15059.38 13648.11
Cash and cash
0.39 0.29 0.16 0.02 0.00 0.00
equivalents/Current Liability
Cash Ratio
0.45
0.4
0.35
Proportion to Current Liabilities
0.3
0.25
0.2
0.390572213
0.15 0.286409817
0.1
0.159555489
0.05
0 0.017224596 0.004245859
Mar'11 Mar' 12 Mar' 13 Mar' 14 Mar' 15
Years
82
Activity Ratio
Activity ratios are used to measure the relative efficiency of a firm based on its use of its assets, leverage
or other such balance sheet items. These ratios are important in determining whether a company's
management is doing a good enough job of generating revenues, cash, etc. from its resources.
Inventory turnover
Inventory turnover is a measure of the number of times inventory is sold or used in a time such as a year.
The equation for inventory turnover equals the cost of goods sold or net sales divided by the
average inventory.
Interpretation
 RINL Gross Profit has decrease due to decline in the domestic steel consumption growth, which was
a robust 11.9 per cent during Financial Year 11-12, declined 2.4 per cent each year over the last two
years due to a slump in construction, capital goods and automobile industries Capacity utilisation in
India fell to 81 per cent in Financial Year 14-15 & 15-16.
COGS 9423.49 11950.04 11224.69 11171.13 8776.36 9755.50
Inventory
Turnover Average Inventory 3254.71 3328.91 3615.855 3845.82 4521.275 4543.505
Ratio
COGS/Average inventory 2.90 3.59 3.10 2.90 1.94 2.15
Trade Receivables Turnover Ratio

Trade Receivables turnover ratio is an efficiency ratio that measures how many times a business can turn
its accounts receivable into cash during a period. In other words, the accounts receivable turnover ratio
measures how many times a business can collect its average accounts receivable during the year.
Credit Sales 4228.20 5300.42 4844.28 4823.25 3725.74 3595.80
Trade
Receivables Average Trade receivables 330.27 378.71 718.4 906.65 919.54 996.77
Turnover Credit Sales/Average Trade
Ratio 12.80 14.00 6.74 5.32 4.05 3.61
receivables
Interpretation
83
 From the above ratio, we can understand that Trade Receivables to Cash conversion period is
increased from past six financial years.
Trade Payables Turnover Ratio

The accounts payable turnover ratio is a liquidity ratio that shows a company's ability to pay off its accounts
payable by comparing net credit purchases to the average accounts payable during a period. In other words,
the accounts payable turnover ratio is how many times a company can pay off its average accounts payable
balance during a year. Account payables turnover ratio can be calculated by dividing the net value of credit
purchases during a given period by the average account payables during the same period.

Credit Purchases 2875.34 3388.89 3239.46 2786.90 2051.02 1656.64
Trade
Payables Average Trade payables 540.95 465.57 564.065 783.935 715.265 667.08
Turnover
Ratio Credit Purchases/Average
5.32 7.28 5.74 3.56 2.87 2.48
Trade payables
Interpretation
From the above ratio, we can understand that Trade Payables to Cash conversion period is increased from
past six financial years.
Cash Conversion Cycle

The cash conversion cycle (CCC) is one of several measures of management effectiveness. It measures
how fast a company can convert cash on hand into even more cash on hand. The CCC does this by following
the cash as it is first converted into inventory and accounts payable (AP), through sales and accounts
receivable (AR), and then back into cash. Generally, the lower this number is, the better for the company.
Although it should be combined with other metrics (such as return on equity and return on assets), it can
be especially useful for comparing close competitors, because the company with the lowest CCC is often
the one with better management.

Inventory 365/Inventory Turnover Ratio 126.06 101.68 117.58 125.66 188.04 169.99
Trade 365/Trade receivables
receivables Turnover Ratio 28.51 26.08 54.13 68.61 90.08 101.18
Trade 365/Trade Payables Turnover
Payables Ratio 68.67 50.14 63.55 102.67 127.29 146.98
84
Cash Inventory conversation+
Conversation Trade receivables
85.91 127.76 171.71 194.27 278.12 271.17
Period Conversation Period-Trade
Payables Conversation Period
Operation
Cycle 365/Cash Conversation Period 4.25 2.86 2.13 1.88 1.31 1.35
Interpretation
 From the above ratio, we can understand that No of Operation Cycles of RINL decline from 4.25
to 1.35 times therefore it has effected the profitability of the firm.
 Trade receivables to cash conversion period exceed more than 90 day’s during the financial year
2014-15 and 2015-16 it indicates there is chances of defilement.
Cash Conversion Period

350 4.5
4
300
3.5
250
3
200
In days
2.5
Times
150 2
1.5
100
1
50
0.5
0 0
Mar' 11 Mar' 12 Mar' 13 Mar' 14 Mar' 15 Mar' 16
Years
Inventory Trade receivables
Trade Payables Cash Conversation Period
Operation Cycle Linear (Cash Conversation Period)
85
Conclusions & Analysis
 The working capital position of the RINL is sound because RINL able to mobilise various
sources through which it is funded.
 Cash and Cash balance in RINL for the financial year 2015-16 is too low to meet its short-term
liabilities the company should maintain adequate cash reserves.
 RINL trade policy need to revise because RINL lagging in converting the trade receivables in to
cash.
 The company has used its purchasing, financing and investment decisions to good effect can be
seen from the inferences made earlier in the project.
 RINL financial cost has consciously increase during past six years.
 Market share of RINL has fallen due to heavy competition among the players
 The various ratios calculated are an indicator as to the fact that the profitability of the firm and
sales are drop down and greatly impacted it’s Working capital
 The firm has not compromised on profitability despite the high liquidity production.
86
Learning from this project
 How to read an Annual Reports of Government Company,
 How each item in Financial Statement impact its working Capital requirement
 How RINL mobilize funds and its sources.
 In RINL I absorbed how efficient the RINL utilizing funds for its operations and how
they channelled the expenditure in an organized form.
 How cost of capital can be optimized.
 Sources available to fund working capital requirement and capital expenditure.
 Analysing performance of the company using ratios.
87
Bibliography
Web Sources
https://www.vizagsteel.com/
https://www.ibef.org/images/logo.png
https://en.wikipedia.org/wiki/Main_Page
http://www.thehindubusinessline.com/
www.investopedia.com
https://en.wikipedia.org
www.myaccountingcourse.com
https://www.ibef.org
http://www.wikihow.com
88

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Working Capital Management at Rashtriya Ispat Nigam Limited

Vignana Jyothi Institute of Management

Vignana Jyothi Institute of Management

Title of the SIP project: Working Capital Management

Name of the company: Rashtriya Ispat Nigam Limited

Company mentor details:

Name: Mr. Kiran Sadananda Gopan

Email Id: [email protected]

I hereby declare that this Project Report titled Working Capital

Modu Manoj Kumar

Name of the Student Signature of the Student

This is to certify that the Project Report titled Working Capital

Signature of the Guide

incomparable guidance has inspired the pace of the project.

The working capital management refers to the management of working capital, or

4. PMCI analysis of the Company. 05 to 10

5.a Back ground /Introduction of the project work 11 to 15

5.b Project or work area deliverables 16 to 17

i) Objectives of the project, methodology, scope and limitations of the project

5.d Working capital Management in RINL (Project) 68 to 77

5.e Conclusions & Analysis 78 to 78

5.f Learning from this project 79 to 79

2) Financial information of company

3) Comparative Balance Sheet

4) Comparative Income Statement

5) Common size Balance Sheet

6) Common Size Income Sheet

3) Raising of India Demand

4) The concept of working capital

5) Working Capital Cycle

P.C Mohapatra G.B.S. Prasad D.N. Rao T. V. S. Krishna T. K. Chand

Wire Rod Coils

Project Industrial DLD, s Rural Export

District Level Dealers (DLDs) / Rural Dealers (RDs)

To be a continuously growing world class company we shall

 Harness our growth potential and sustain profitable growth.

The concept of working capital can be explained in two ways

Net working capital

Temporary working capital

 Maintaining adequate working capital and

 Cash & Cash equivalents

Estimating Working Capital

Current assets holding period

Working Capital Based on Operating Cycle

Operating/Working Capital Cycle Definition

Working capital requirement estimation based on cash cost

Ratio of fixed investments

Scope of the study

Methods and methodologies adopted for the study

 Profit and Loss Account

Tools Used for The Analysis

Period of Study (i.e., Sample size)

Preparation of financial statements in conformity with Generally Accepted Accounting

What are 'Financial Statements'

Cash Flow Statement

These activities include operating, investing and financing activities.

1. Comparative Financial statements

1) Comparative Financial Statements