A study on Financial Performance of SAIL .2022 BY AVIKAL YADAV , helps you to get some brief information about SAIL ( ISP)

1. A Study On Financial Performance Of SAIL(ISP)
SUBMITTED BY
AVIKAL YADAV
Registration. No :- KNU20010637
Master Of Business Administration
Kazi Nazrul University , Asansol
Under The Supervision Of
SAMARENDRA NATH CHAKRABORTY
AGM, FINANCE & ACCOUNTS
Sail(isp) , BURNPUR, ASANSOL
From 20th
June - 17th
July, 2022

2. CERTIFICATE
This IS To Certify That The Project Work Title A Study Of Financial
Performance At IISCO STEEL PLANT (SAIL), Submitted To The Kazi
Nazrul University In Partial Fulfilment For The Award Of the Degree Of
Master’s Of Business Administration Kazi Nazrul University, Asansol, Is A
Record Of Original Work Done By Avikal Yadav Under My Supervision
And Guidance And This Project Work Has Not Formed On the Basis For
The Award Of Any Degree Or Similar Title To Any Candidate Of Any
University. His Efforts Were Appreciable During The Internship Schedule
And Achieved The Targets Within Stipulated Time Deadlines Provided To
Him. I Hope He Gets The Best Opportunities In Future And Accomplishes
All Objectives.
DATE :
Signature of the Guide
Mr S.N. Chakraborty
Asst. General Manager,
Finance & Accounts

3. DECLARATION
I do hear by declare that this internship project report
work titled a study of financial performance of ISSCO (SAIL) is
a record of original work done by my guidance of Mr
S.N.Chakraborty { Asst. General Manager}. I have tried to be
present this report with almost clarity and an authentic one as
well. This project work undertaken as part if Master Of Business
Administration. [FINANCE] from Kazi Nazrul University ,
Asansol.
Date :
Signature of the candidate
AVIKAL YADAV
Registration No :-

4. PREFACE
In the recent years the Indian Economy has been undergoing an
important transition, a shift from ownership to professional
management.
This project report will serve as a basic knowledge in respect of
Financial Activities and results there of different Steel Plants of SAIL
and SAIL as a whole.
The project report covers the various activities involved right from
the utilisation of raw material to contribution to the shareholder’s
wealth and Government Exchequer. It is accompanied with number
of formats, charts and current financial position relevant with the
other core plant of SAIL, which will be helpful in understanding the
subject matter.

5. ACKNOWLEDGEMENT
The satisfaction Euphoria that accompanies the successful completion
of any work would be incomplete unless we mention the name of the
person, who made it possible, whose constant guidance and
encouragement served as a backbone of light and crowned our efforts
with success. I consider it a privilege to express through the pages of
this report, a few words of gratitude and respect to those who guided
and inspired in the completion of this project.
It is a pleasure to acknowledge them, though it is still an
inadequate appreciation for their contribution. I express my sincere
gratitude to Dr. LALIT KR JOSHI, Teacher-in-charger (Kazi Nazrul
University) . I would not have completed this journey without the
help, guidance and support of certain people who acted as guides and
friends along the way. I would like to express my deepest and sincere
thanks to my project guide Mr SAMARENDRTA NATH
CHAKRABORTY, AGM [Finance & Accounts] for their
invaluable guidance and help. The project could not be completed
without their support and guidance.
Thanks to those executive and non-executive of
ISP, whose extended co-operation had helped me in my
successful completion of my project within the stipulated period
of time.

7. INTRODUCTION
World Steel Association, often abbreviated as World Steel, is the international trade
body for the iron and steel industry. The Association Represents approximately 170 steel
Producers (Including 17 Of the World’s 20 Largest Steel Companies), National and Regional
Steel Industry Associations and Steel Research Institutes. World Steel Members Represent
Around 85% of World Steel Production.
The Purpose Of The Association Is To Promote Steel And The Steel Industry To Customers, The
Industry, Media And The General Public. World Steel Is A Non-Profit Organization With
Headquarters In Brussels, Belgium.
History
The World Steel Association was founded as the International Iron and Steel Institute
(IISI) in Brussels, Belgium on 19 October 1967. In April 2006, IISI opened a second office in
Beijing, China. The organization changed its name to World Steel Association in October
2008.

8. Major steel-producing countries
2020 2021
Country Rank Tonnage Rank Tonnage
China 1 1065 1 1033
India 2 100 2 118
Japan 3 83 3 96
United State 4 73 4 86
Russia 5 72 5 76
South Korea 6 67 6 70
Turkey 7 36 8 40
Germany 8 36 7 40
Brazil 9 31 9 36
Iran 10 29 10 29
World 1878 1952
In 2021, total world crude steel production was 1952 million tonnes. The biggest producing
country is currently China and after that India stands in no.2. Both contributes major part of
steel to the world.

9. INDIAN STEEL GLOBAL SCENARIO:
International Steel Sector Is Reflecting The Global Trends In Business Environment. The Early
Years Of The 21st Century Have Set The Pattern For The Future. Asia Has Increased Its Share
Of Production. Although Consumption Of Steel Is Likely To Increase In Most Regions Of The
World In The Medium Term, Growth In Industrialized Nations Is Likely To Be Much Slower
Than The Average Growth In Demand Across The World. Developing Countries and The
Emerging Economies Are Likely To Have The Fastest Growth Rate In Steel Demand In Future
In The Developed World, The EU Is Expected To Experience Stagnant Demand In Medium
Term, While The NAFTA Block Is Likely To See Low Positive Growth In Consumption.
GROWTH OF INDIAN STEEL SECTOR:
India Is Amongst The Cheapest Producers Of Hot Metal In The World. The Cost Advantage
Mainly Arises From The Abundant Availability Of Cheap And Good Quality Iron Ore. Besides,
Overall Manpower Cost Is Also Low. However, These Advantages Are Nullified To Some Extent
Due To Low Labour Productivity, High Energy And Power Costs And High Finance Charges. The
Expansion Plans Of Steel Majors Are Likely To Put Tremendous Pressure On The Availability
Of Inputs And Infrastructure Resources Within The Country. The Nation Is Endowed With
Large Iron Ore Reserve, But Their Development And Exploitation Would Require Huge
Resources. Besides, The Effects On The Environment Where Virgin Areas Are Being Exploited
Needs To Be Addressed.
Availability Of Coking Coal Is Expected To Remain Serious Constraint. Coking Coal Supplies
From Public Sector Coal Companies Have Been Declining Over The Years, Leading To Higher
Imports. Traditional Coking Coal And Coke Suppliers Such As China Have Also Curtailed
Exports In Order To Feed Their Expanding Iron And Steel Industry. The Steel Industry Needs
To Remain Competitive By Improving Efficiency Across The Entire Value Chain In An Integrated
Manner. Hence, Logistics Would Be An Important Area Of Concern For The Steel Industries.
This Involves Development Of Ports, Smoother Transportation To And From Ports,
Rationalization Of Inland Freight Charges As Well As Better Road Movement Facilities.
STEEL DEMAND IN INDIA:
The Steel Industries In India Are Poised For Faster Growth In The Decade Ahead As The
Industrial And Economic Development Of The Country Gains Pace. However Cannot Be
Ignored Is That Increasing Emphasis On Globalization And Liberalization Will Closely Link The
Fortune Of Indian Steel Industries To The Global Market.

10. The Domestic Outlook For Finished Steel Has Been Estimated As Follows:
Domestic market growth outlook:
Growth Trajectory 2020-2021
(Metric Tones)
2021-2022
(Metric Tones)
GDP @ 7.2% 55 - 89.3 104 - 111
The Total Steel Consumption Of Finished Steel In India Has Been Estimated To Touch 111
Million Tones During 2021-2022. Amongst The Steel Consuming Segment, Transportation Of
Petroleum Products, Household Appliances And Automobiles Are Expected To Have Fast
Growth.
STEEL DEMAND:
Domestic Demand:
The Present Steel Consumption Per Capita Per Annum Is About 114 MT In 2022 In India,
Compared To 150kg In The World, And 350 Kg In The Developed Country. The Estimated
Urban Consumption Per Capita Per Annum Is Around 77kg In The Country, Expected To Reach
Approximately 165kg In 2019-20. The Rural Consumption Of Steel In India Remains At Around
2kg Per Capita Per Annum. In The Policy A Target Has Been Set For Raising The Per Capita
Rural Consumption Of Steel To 4kg Per Annum By 2019-20.
Exports:
The Growth Of Growth Of Exports Of Steel From India Has Been Around 10 Percent Per Annum
Over The Past Decade. A Growth Rate Of Around 13% Per Annum Is Envisaged Up To 2019-
20.
STEEL AUTHORITY OF INDIA (SAIL)
Sail Maharatna Company, Is India’s Largest Steel Producer, Holding 20% Of Market Share Of
Domestic Crude Steel Production. The company produces iron and steel at five integrated
plants and three special steel plants, located principally in the eastern and central regions of
India and situated close to domestic sources of raw materials. SAIL manufactures and sells a
broad range of steel products. SAIL mined a total of 32.40 million tonnes of iron ore, fluxes,
and coal in FY20.
.

11. INDUSTRY PROFILE:
A.ORIGIN AND DEVELOPMENT OF THE INDUSTRY
The Iron And Steel Industry In India Was Earlier Categorized As Main Producer Consisted Of
Various Integrated Steel Plants Based On BF-BOF Route And Secondary Producers
Consisting Of Electric Arc Furnace Units, Rerollers, Stand Alone Pig Iron Cold Rolling And
GP/GC Sheets Units Etc.
Steel Covers 700000 Million Tons Produced Annually- Is The World’s Most Important
Material. Without Steel, The World Would Not Exists. TATA Steel Is Now A Familiar Name
Everywhere And The Credit For Starting A Mighty Steel Plant At Jamshedpur, Especially At A
Time When The Political Freedom Of The Country Was Steel A Dream, Should Largely Go To
This Visionary.
The First World War Resulted In A Great Demand For Steel Which Tata Steel Helped To
Meet, The Famous Howrah Bridge Of Kolkata Was Built.
B. GROWTH OF PRESENT STATUS OF THE INDUSTRY
The Present Study Makes An Attempt To Assess, In The Quantitative Terms, The
Contributions Made By Various Factors To The Observed Rate Of Growth Of Indian Iron And
Steel Industries During The Post-War Period. The Analysis Is Conducted Within The Broad
Framework Provided By The Well-Known Neo-Classical Model. The Analysis Is Based On
The Time Series Data Covering The Period 1946-70, Obtained From The Annual Reports Of
GMI And ASI.
COMPANY VISION:
To Be A Respected World Class Corporation And The Leader In Indian Steel Business In Quality,
Productivity, Profitability And Customer Satisfaction.
COMPANY MISSION:
➢ We Build Lasting Relationship With Customer Based On Trust And Mutual Benefit.
➢ We Upload Highest Ethical Standards In Conduct Of Their Business.
➢ We Create And Nurture A Culture That Support Flexibility, Learning And Is Proactive
To Change.
➢ We Chart A Challenging Career For Employees With Opportunities For Advancement
And Rewards.
➢ We Value The Opportunity And Responsibility To Make A Meaningful Difference In
People’s Lives.

12. FORMATION OF STEEL AUTHORITY OF INDIA LIMITED
(SAIL):
The Committee Of Public Undertaking Of The Fifth Lok Sabha Was The First Parliamentary
Committee To Undertake A Significant Review Of The Question Of Setting Up A Holding
Company For Steel. It Was First Considered In The Department Of Steel In 1971 With The
Following Two Objective:
• Rapid Growth Of Industrial Sector, Of The Economy, Of The State As A Leading Agent
Of The Growth Process.
• Ability of the Government to divert investment into areas which are strategic from
the point of view of future development.
In this context, it was recognized that the public sector had to be made more efficient in
order that it might be able to contribute far more than it had to the holding company could
perform a number of other important functions like coordination and control of constituent
units, planning long term programmes, introduction of necessary technological changes,
setting up of an R&D organization and training of managerial personnel for the public sector
as a whole.
Based on the above consideration, the proposal to set up a holding company for steel and
associated input industries were approved by the government in January 1972. Accordingly,
the formation of Steel Authority of India Limited was approved by the government in
December, 1972. The company was incorporated on January 24, 1973 with an authorized
capital of 2,000 crores. In 1978 SAIL was restructured as an operating company.
PRESENT STATUS OF SAIL:
Steel Authority Of India Limited (SAIL) Through Its Five Integrated Steel Plants At Bhilai,
Bokaro, Burnpur, Durgapur And Rourkela Accounts For Major Steel Production Capacity Of
India. Three Special Steel Plants At Bhadravati, Durgapur, And Salem Produce A Wide Range
Of Special Steels, Special Alloy Steels And Stainless Steel. MEL, Chandrapur, A
Subsidiary Company, Is One Of The Largest Producers Of Bulk Ferroalloys In The Country.
It Has Since Been Merged With SAIL. Today, SAIL Is One Of The Largest Corporate Entities. Its
Innate Strength Lies In Its Technologist And Professionals And A Trained Manpower Of Over
61989 As On 1.5.2022 Including Subsidiary. It Had A Sales Turnover Of Rs.68452.39 Crores
During 2020-2021.

13. MODERNISATION:-
Mega Expansion Plans of SAIL.
The Steel Psus Are In The Midst Of The Capacity Expansion Plans. The Major Thrust Of The
Modernization And Expansion Plans Is To Adopt The Best Modern Technology, Which In
Addition To Being Cost Effective Should Also Be Energy Efficient And Environment Friendly.
The Progress Of The Expansion Of SAIL
Is Monitored On A Regular Basis In The Ministry. As A Consequence Of Monitoring, A Number
Of Systemic Improvements Have Been Put In Place In Project Implementation.
Steel Authority Of India Limited (SAIL)
(i) Steel Authority Of India Ltd. Has Undertaken Modernisation And Expansion Of Its
Integrated Steel Plants At Bhilai, Bokaro, Rourkela, Durgapur & Burnpur And
Special Steel Plant At Salem. In The Current Phase, The Crude Steel Capacity Is
Being Enhanced From 12.8 Million Tonne To 21.4 Million Tonne Per Annum. The
Indicative Investment For Current Phase Is About Rs.62,000 Crore. In Addition,
Rs.70,000 Crore (Approximately) Has Been Earmarked For Modernization And
Expansion Of SAIL Mines.
(ii) Orders For About Rs 70000 Crore Have Been Placed For Various Modernisation And
Expansion Packages. Cumulative Expenditure Until 2022 Has Been Rs.31670 Crore
Including Expenditure Of Rs.7315 Crore During Current Financial Year Upto
December, 2011.
(ii) Expansion Of Salem Steel Plant Has Been Completed. Also, Some Of The Linked
Facilities Have Been Completed In Other Plants. The Execution Of Modernisation
And Expansion Plan Is Being Done With Full Momentum. The Current Phase Of
Modernisation And Expansion Is Expected To Be Completed By 2023-2024.

14. MAJOR UNITS:
INTREGRATED STEEL PLANT:
❖ Rourkela Steel Plant (RSP) In Orissa Set Up With German Collaboration (1959).
❖ Bhilai Steel Plant (BSP) In Chattisgarh Set Up With Soviet Collaboration(1959).
❖ Durgapur Steel Plant (DSP) At Durgapur,West Bengal Set Up With British Collaboration.
❖ Bokaro Steel Plant (BSP) In Jharkhand (1959) Set Up With Soviet Collaboration(Hailed As
1st Swadeshi Steel Plant).
❖ IISCO Steel Plant At Burnpur, West Bengal.
SPECIAL STEEL PLANT:
• Alloy Steel Plants (ASP) In West Bengal
• Salem Steel Plant (SSP) In Tamil Nadu
• Visvesvaraya Iron And Steel Plant (VISL) In Karnataka
SUBSIDIARIES:
• Maharashtra Eletrosmelt Limited (MEL) N Maharashtra
• Bhilai Oxygen Limited (BOL) In New Delhi
OTHER UNTS:
• Central Marketing Organization (CMO) At Kolkata, West Bengal
• SAIL Consultancy Division (SAIL CON) At New Delhi
• Research & Development Centre For Iron And Steel (RDCIS) At Ranchi, Jharkhand
• Central Coal supply Organization
• Central Power Training institute
• SAIL Safety organization
• Growth Division
• Logistic and Infrastructure
• Colliery Division

15. IISCO STEEL PLANT (ISP):
INTRODUCTION:
Indian Iron And Steel Company (IISCO), One Of The Oldest Integrated Steel Plant Started
Production Of Iron In The Year 1870 In Its Kulti Works Of Bengal Iron Works Company. IISCO
Burnpur Works Was Incorporated On 11th March 1918 Started Production Of Iron In 1922
And Of Steel In 1939. It Had Its Own Iron Ore Mines At Gua And Chiria And Coal Mine At
Chasnalla, Jitpur, Ramnagore. In The Late 1950’s It Was Expanded Further To Become One
Million Ton Steel Plant.
IISCO Was Merged With SAIL With Effect From 16th February, 2006. Following Merger It Was
Renamed As IISCO Steel Plant. Now The Plant Is To Achieve New Milestones Implementing Its
Growth Plan In Tune With SAIL Corporate Plan 2012. ISP’s Annual Hot Metal Production
Capacity Is Envisaged To Go Up To 4.2 Million Tons.
IISCO Steel Plant Is The 5th Integrated Steel Plant Of SAIL. Presently ISP Has Got An Integrated
Steel Plant At Burnpur, Captive Coal Mines At Chasnalla And Jitpur In Jharkhand.

16. ISP: A BRIEF HISTORY
The Indian Iron And Steel Company Limited Now Renamed As ISP After Being Merged With
SAIL. ISP – Burnpur Is One Of The Oldest Integrated Steel Plant In India, Set Up In 1918 As A
Pig Iron Producing Unit. It Is Situated At A Distance Of About 200 Km From Kolkata And 10 Km
From Asansol Station. Earlier Kulti Works Was Established In 1870. From Where The Journey
Begin.
IISCO Is One Of The Blue Chip Integrated Steel Plant Of India, Underwent Various Phases Since
Early Expansion During 1953-55. It Was The Only Indian Company To Be Quoted In London
Stock Exchange. IISCO, Which Had Its Glorious Years During The 60’s Exceeded 100% Of Rated
Capacity Ingot Steel Production During 1962-64. It Faced Decline Mainly Due To Non-
Rehabilitation Of Equipments And Not Upgrading Technology. The Result Was Lowest Ever
Production In 1972. After The Government Took Over In 1972 ‘Plant Rehabilitation’ Scheme
Was Implemented At A Cost Of Approx Rs.59 Crore. Several Modernization Schemes Were
Formulated By Indian And Foreign Consultants. But Not Implemented. This Resulted In
Further Decline Of The Bottom Line. Proposal Of IISCO Modernization In January, 1988. A
Unique Memorandum Was Signed With All Unions In Support Of Changes. In 1989 A Japanese
Consortium Led By M/S Nippon Steel Corporation Submitted A ‘Basic Engineering Report’.
During 1990-91 A Few Interim Measures Was Also Taken No.9 Coke Oven Battery Was Built,
A New Pig Casting Machine Was Also Built And Commissioned, Light Structural Mill Was
Recommissioned, Gas Firing In Two Big Boilers Introduced And Sale Outside JPC Started. The
Result Was Drastic Turnaround In The Bottom Line Of A Existing Plant. A Few Additional
Schemes Are Under Examination/ Implementation. In 1991-92 One More Pig Casting Machine
Was Built And Commissioned. In 2003 Government Of India Cleared A Draft Rehabilitation
Scheme And Approved For Updating Various Units Of Plant. In 2004 Partial Relining Of Blast
Furnace Number 4 Done To Further Increase In Hot Metal Production. From 2004 September
Both THF Went On Stream.
After Merger With SAIL, ISP Has Now A Very Bright Future As It Has An Expansion Plan Of
Setting Up A New Plant Of 4.2 MT By 2022-2023 With An Investment Of More Than 14,000
Crores Rupees In Next 2 Years.

17. CHRONOLOGICAL ORDER OF EVENTS:
• 1870: Bengal iron works founded at Kulti.
• 1875: Iron production commences at Kulti.
• 1880: Barakar iron works take over Kulti works.
• 1890: Bengal iron and steel company limited takes over Kulti works.
• 1901: Iron ore mining Initiated in Sing Bhum district of Jharkhand.
• 1904: Kulti starts making steel.
• 1918: Incorporation of IISCO.
• 1922: Frist blast furnace blown in IISCO’s Hirapur works.
• 1936: IISCO absorbs Bengal Iron’s Kulti works (2nd December).
• 1939: Steel making starts at Steel Corporation of Bengal (SCOB) blooming mill, heavy
structure mill (HSM), Light structural mill (LSM).
• 1952: SCOB amalgamates with IISCO (31st December).
• 1953: IISCO expansion program commenced.
• 1958: Blast furnace no. 3 & 4 installed.
• 1960: Merchant rod mill (MRM) stated.
• 1972: Government took over of IISCO (14th July).
• 1973: Formation of sail (24th Jan).
• 1976: IISCO nationalized (17th June).
• 1978: Iron and steel companies and miscellaneous provision act passed and IISCO
made a subsidiary of SAIL (1ST May).
• 1979: Transfer of Government helped IISCO shares to SAIL (31ST March).
• 1988: IISCO become a wholly owned subsidiary of SAIL.
• 1989: Sheet mill at Burnpur phased out.
• 1994: Ujjain stanon pipe and foundary limited closed.
• 1994: IISCO was declared as a sick industrial company by BIFR.
• 1998: Twin hearth furnace -1 and Oxygen plant commissioned.
• 2003: Kulti Closed
• A draft rehabilitation scheme (DRS) for rehabilitation of IISCO approved.
• 2004: Twin Health Furnace-2 commissioned
• IISCO made net profit after 30 years.
• 2006: On 16th February IISCO merged SAIL.
IISCO, once a blue-chip integrated steel plant of India underwent various phases since early
expansion during 1953-55. It was the only Indian Company to be quoted at London stock
exchange. IISCO, which has its glorious years during the 60’s, exceeded 100% of rated capacity
ingot steel producing during 1962-64. It faced a decline mainly due to non-rehabilitation of
equipment’s and not upgrading technology. The result was lowest over production in 1972.
After the government took over in 1972 ‘Plant rehabilitation scheme’ was implemented at a

18. cost of approx. Rs.59 crores. Several modernization scheme were formulated by Indian and
foreign consultant, but not Implemented. This resulted in further decline of the bottom line.
During the late 80,s step were taken to modernize Burnpur works to 2.15 MT/yr. of crude
steel with Japanese and phase out a few old shops in order to minimize cash losses and
develop human resources to suit a new technology. In the regard JICA (Japan International
Cooperation Agency) submitted feasibility study report and government of India accorded in
principal approval of IISCO modernization in January, 1988. A Unique memorandum was
signed with all unions in support of changes. In 1989 a Japanese consortium led by M/S
Nippon Steel Corporation submitted a ‘Basic Engineering Report. Proposal for IISCO
modernization was forwarded to PBI in September 1991 and PIB clearance was received in
December 1991. During 1990-91 a few interim measure was also taken. No. 9 coke oven
battery was rebuilt, a new pig casting machine was built and commissioned, light structural
Mill was re-commissioned, gas firing in two big boilers introduced and sail outside JPC started.
The result was a drastic turnaround in the bottom line of a existing plant. A few additional
scheme are under examination/implementation. In 1991-92 one more new Pig casting
machine was built and commissioned. In 2003 Govt. of India cleared a draft rehabilitation
scheme and approved for updating of various units of plant. In 2004 partial relining of BF# 4
done to further increases in hot metal production. From 2004 September both THF went
stream.
After merger with SAIL, ISP has now a very bright future as it has an expansion plan of setting
up a new plant of 4.2 MT By 2022 -23 with an investment of more than 14,000 crores rupees
in next 2 year.

19. DEPARTMENTS IN IISCO STEEL PLANT
Plant
(Operation)
• Coke oven
• Blast Fernace
• Steel Melting Shop
• Rolling Mill
(Maintenance)
• Power plant
(Service Plant)
1. Transportation Department
2. Raw Material handling
3. RC & RD centre
4. environment control department
5. vigilance
6. quality control
7. safety
(NON PLANT)
• personnel department
• human resource development (HRD)centre
• public relation department
• finance department
• sales, marketing department

20. BRIEF DESCRIPTION OF IISCO STEEL PLANT, BURNPUR:
COKE OVEN:
The Coke Oven By-Product Plant Is An Integral Part Of The By-
Product Coke Making Process. In This Process Of Converting Coal Into Coke Using The By-
Product Coke Oven, The Volatile Matter In The Coal Is Vaporized And Driven Off. This Volatile
Matter Leaves The Coke Oven Chambers As Hot, Raw Coke Oven Gas. After Leaving The Coke
Oven Chambers, The Raw Coke Oven Gas Is Cooled Which Results In A Liquid Condensate
Stream And A Gas Is Cooled Which Results In A Liquid Condensate Stream And A Gas Stream.
The Functions Of The By-Product Plant Are To Take These Two Streams From The Coke Ovens
To Process Them To Recover By-Product Coal Chemicals And To Condition The Gas So That It
Can Be Used As A Fuel Gas.
Coke Is The Major Raw Material Required In Blast Furnace As A Fuel And Carburizing Agent
During Pig Iron Production.
Output of coke oven and their use:
Product: Coke: Used As Fuel And Carburizing Agent In Blast Furnace
By-Product: (A) Coal Tar (B) Naphthalene

21. BLAST FURNACE:
A Blast Furnace Is A Type Of Metallurgical Furnace Used For Smelting To Produce Metals,
Generally Iron. In A Blast Furnace, Fuel And Ore Are Continuously Supplied Throughout The
Top Of The Furnace, While Air Is Blown Into The Bottom Of The Chamber, So That The
Chemical Reactions Take Place Throughout The Furnace As The Material Moves Downward.
The End Products Are Usually Molten Metal And Slag Phase Tapped From The Bottom, And
Fuel Gases Exiting From The Top Of The Furnace.
Blast Furnaces Are To Be Contrasted With Air Furnaces, Which Are Naturally Aspired Usually
By The Convection Of Hot Gases In A Chimney Flue. According To This Broad Definition,
Bloomeries For Iron, Blowing Houses For Tin And Smelt Mills For Lead Would Be Classified As
Blast Furnaces. However, The Term Has Usually Been Limited To Those Used For Smelting Iron
Ore To Produce Pig Iron, An Intermediate Material Used In The Production Of Commercial
Iron.
Objective Of Blast Furnace Is To Produce Liquid Iron Which Is Mainly Used As Raw Material
For Steel Making And Remaining Pig Iron Is Sold To The Customers As Raw Material For Steel
Making And Remaining Pig Iron To The Customers. So Blast Furnace Is Considered As Heart Of
An Integrated Steel Plant.

22. Output of blast furnace:
• Pig Iron (Hot Metal) – Used For Steel Production In SMS Or Sold As Solid Pig Iron.
• Slag – Sold To Cement Factory/ Used As Raw Material For Cement Production
Blast Furnace Gas – Used As Gaseous Fuel In Blast Furnace, Stove, Coke Oven Battery And
Rolling Mills.
Blast Furnace :-

23. STEEL MELTING SHOP (SMS):
Carbon Injection:
Carbon Injection In EAF Is Now A Day Adopted World Wide. In This Process The Carbon
Particles Are Pressurized In A Vessel Through Dry Compressed Air And Injected Into The Bath.
With These Practices Following Benefits Are Achieved. By Injecting Carbon On Oxidized Slag
CO2 Formation Takes Place. Evolution Of CO2 Bubbles Makes The Slag Foamy And As A Result
Submerged Arching Takes Place, Which In Turn Gives Better Energy Utilization. Oxidizing Slag
Erodes The Furnace Refractory. The Formation Of CO2 Is An Exothermic Reaction, Which
Liberate Good Amount Of Heat Energy Getting Wasted As CO Is Converted To CO2 In The Bath
Itself
Input : Molten Iron (Hot Metal) , Scrap Output : Crude Steel
• 3x150 T Converters
• 2x6 Strand Billet Casters
• 1x4 Strand Combi Bloom Beam Blank Caster
• 2 Ladle Furnaces
• 1 RH Degasser
• 3 Argon Rinsing Stations

24. Oxygen Lancing:
In EAF Oxidizing Period Of Steel Making Is Carried Out In Which Oxygen Is Blown In The
Furnace. In The Conventional Method Of Lancing Oxygen Is Blown In The Furnace. In The
Conventional Method Of Lancing Oxygen Is Blown Manually, Which Is Costly And Time Taking
Process. With The Process The Possibility Of Boiling In The Furnace Is More Due To Formation
Of Differential Carbon Layer Through Sallow Blowing. To Over Come This Method Of Lancing
With Supersonic Lance Has Become A Common Practice. In This Process Lancing Is Done
Through A Specially Designed Lance Which Ejects O2 At A Velocity Of Approx 1.5 Mach.
Rolling Mills:
A Rolling Mill Is A Machine Or Factory For Shaping Metal By Passing It Between A Pair Of Work
Rolls. Rollin Mills Are Often Incorporated Into Integrated Steelworks, But Also Exist As
Separate Plants And Can Be Used For Other Metals, And Other Materials. Rolling Mills
Historically Have Been Of Several Kinds:-
• Depending On The Temperature Of The Metal Being Rolled, Rolling Mills Are Typically
Hot Or Cold Rolling Mills.
• A Slitting Mill Was Used To Cut Flat Bar Iron Rods For Nail-Making.
• A Tinplate Works Normally Contained At Least Two Rolling Mills, One For Hot Rolling
And The Other For Cold Rolling Single Plates, Prior To Tinning.

25. Blooming Mills:
The Blooming Mill Is 1050 Mm 2 Hi Reversing Mill Driven By A 6750 HP DC Motor Capable Of
Rolling 400 Mm Square To 125 Mm Square Blooms, Slabs 500 Mm To 250 Mm Wide And 200
Mm To 100 Mm Thick, With Minimum 4 Ton To Maximum 8 Ton Weight From Killed, Semi-
Killed.
Billet Mill:
This Mill Is A Continuous Mill And Roll Semis In Form Of Billets Of Various Sizes For Merchant
Mill And Light Structural Mill (LMS).

26. HEAVY STRUCTURAL MILL (HSM)
INTRODUCTION:
This Mill Is Also Called 34” Mill And It Is Located Just After 40” Mill (I.E. Blooming Mills). The
Input Raw Materials For This Mill Come From Blooming Mill. The Mill Consists Of The
Following Sections:
i) Reheating Furnace
ii) Mill Power
iii) Finishing
iv) Mangle Machine
FINAL PRODUCT OF HEAVY STRUCTURAL MILL (AS
SALEABLE):
1. Joists
2. Channels
3. Angles
4. Special Section
5. Z-Piling

27. LIGHT STRUCTURAL MILL (LMS):
The Light Structural Mill Is One Of The Units Of Rolling Mill Complex To Produce Light
Structural Such As Angle, Joist, Channels, Light Rails, Round Bar etc.
The Mill Was Installed In November 1939 With An Annual Capacity Of 0.083 MT. The Input
Materials For The Mills Are Billets Of Different Sizes From 91 Mm To 125mm Obtained From
Billet Mill.
Following Are The Major Equipment’s Details Of LMS:
• No.1 Roughing Stand
• No.2 & 3 Stands
• No.4 Stand
• Reheating Furnace
• Overhead Crane
• Shearing Machine
• Mangle Machine
FINAL PRODUCTS OF LIGHT STRUCTURAL MILL (all saleable):
• Joist
• Channels
• Rails
• (I) Equal Angles (Ii) Unequal Angles
• Rounds

28. MERCHANT MLLS:
Merchant Mill Is The Last And Latest Mill In The Rolling Mill Family. It Is Also Called Bar And
Rod Mill. In Older Times, The Mill Itself Used To Sell The Products Which Are The Main Reason
Of Addition Of The World Merchant To The Mill’s Name.
Merchant Mill Was Installed In June 1960, By Morgan Davey United. This Mill Has The Capacity
To Produce 0.13 MT/Year. Merchant Mill Produces Plain Rounds, Ribbed Bars/ Rounds From
Billets. Billets Are Supplied By The Billet Mill.
FINAL PRODUCT OF MERCHANT AND ROD MILL (All
Saleable):
• Plain Rounds
• Ribbed Rounds & TMT Bars.

29. SAIL TODAY:
SAIL Today Is One Of The Largest Industrial Entities In India. Its Strength Has Been The
Diversified Range Of Quality Steel Products Catering To The Domestic, As Well As The Export
Markets And A Large Pool Of Technical And Professional Expertise. Today, The Accent In SAIL
Is To Continuously Adopt To The Competitive Business Environment And Excel As A Business
Organization Both Within And Outside India.
YEARLY TURNOVER OF ISP:
YEAR TURNOVER(in crores)
2018 57975.21
2019 67468.10
2020 62569.95
2021 69964.28
2022 104335.39

30. OBJECTIVES OF SAIL-ISP
The Project Aims To Analyse The Various Components Of Working Capital In ISP I.E, Cash,
Inventory, Receivable And Payables. It Also Analyses The Various Ratios And Also Performs A
Comparative Analysis With The Competitors And Finally Provided Recommendation To
Manage The Working Capital More Efficiently.
BROAD OBJECTIVES:
• To Find The Efficiency Of Working Capital In IISCO Steel Plant And Also Other Major
Units Of Sail Which Plays An Important Role In Supporting Other Activities Of An
Integrated Steel Plant.
• To Have A Practical Experience Of The Functioning Of The Finance Department Of A
Steel Producing Company.
SPECIFIC OBJECTIVES:
• To Gain Familiarity With The Various Component Of Working Capital In IISCO Steel
Plant And An In Depth Knowledge Of The Tricks Of Managing The Daily Financial
Activities Of ISP.
• To Find The Difference Between The Theoretical And Practical Aspects Of Working
Capital Management.
To Judge The Success Of Management In Carrying On Daily Transaction Of Company And
To Provide Solution For The Improvement Of The Company.

31. IISCO STEEL PLANT (ISP)
Modernised Facilities:-
IISCO Steel Plant Has Taken Up A Massive Plan To Expand
Its Annual Production Capacity To About 2.5 Million
Tonnes By Installation Of A Greenfield State-Of-The-Art
Integrated Steel Plant. The Modernised Facilities Include:
UNIT FACILITY ANNUAL PROD. CAPACITY
Coke Oven Battery 7 M Tall X 74 Ovens 0.78 MT Gross Coke
Sinter Plant 2 X 204 M2 3.8 MT Gross Sinter
Blast Furnace 1 X 4060 M3 2.7 MT Hot Metal
Basic Oxygen Furnace 3 X 150 Tonne 2.5 MT Crude Steel
Billet Caster 2 X 6 Strand 1.67 MT
Beam Blank Caster 1 X 4 Strand 0.8 MT
Universal Section Mill - 0.6 MT
Bar Mill - 0.75 MT
Wire Rod Mill - 0.5 MT

32. SWOT ANALYSIS OF SAIL-ISP
DURING The Project In SAIL-ISP, Burnpur , An Effort Was Made To Conduct The SWOT
Analysis. The Basic Objective Of SWOT Analysis Is To Provide A Framework To Reflect On
Organizational Capability To Avail Opportunity Or Overcome The Threats Presented By The
Environment.
Strengths:-
a) Ideal Location Providing Easy Access For Incoming & Outgoing Material.
b) Time Tested Skill & Dedication Of Manpower.
c) Chiria, Property Of SAIL-ISP, Asia’s Largest Iron-Ore Deposits.
d) Country Wide Marketing Network.
e) Supporting Industry Facilities With Captive Foundry And Spun Pipe Plants.
f) Damodar River Flow Within 5km Of The Steel Plant.
Weakness:-
a ) Out dated production process & machineries
Opportunity:-
a) There Are Sections Of Product Where SAIL-ISP Has A Complete Monopoly.
b) Concentrating To Produce Product Specific To SAIL-ISP.
c) Exposed To More Facilities Both Technological & Financially After Merger With SAIL.
Threat:-
a) Strong Competitors.
b) Shortage of Coal.
c) International Market Pricing.

33. FINANCE
Finance Is The Study Of Fund Management. The General Areas Of Finance Are Business
Finance, Personal Finance (Private Finance), And Public Finance. Finance Includes Saving
Money And Often Includes Lending Money. The Field Of Finance Deals With The Concepts Of
Time, Money, Risk And How They Are Interrelated. It Also Deals With How Money Is Spent
And Budgeted.
One Facet Of Finance Is Through Individuals And Business Organizations. Individuals Or
Corporations For Consumptions And Investment And Charges Interest On Loans.
SCOPE OF FINANCE:-
The Scope Of Finance Function Is Very Wide. It Consists Of The Following Activities:
Estimating the requirements of funds:
The Finance Department Must Estimate The Capital Requirement Of The Firm Accurately For
Long Term And Short Term Needs. In Estimating The Capital Requirement Of The Business,
The Finance Department Must Take Help From The Budgets Of Various Activities Of The
Business E.G. Sales Budget, Production Budget, Expense Budget Etc. Prepared By The
Concerned Departments. In The Initial Stage, The Estimate Is Done By Promoters But In
Growing Concern, It Is Done By Finance Department.

34. Investments of funds:
In Taking Decisions For The Investment Of Long Term Funds, A Careful Assessment Of Various
Alternatives Should Be Made Through Capital Budgeting, Opportunity Cost Analysis And Many
Other Techniques Are Used To Evaluate The Investment Proposals. A Part Of Long Term Funds
Should Be Invested In Working Capital Of The Company. While Taking Decisions For The
Investment Of Funds In Long Term Assets, Management Should Be Guided By The Three Basic
Principles, Viz. Safety, Profitability And Liquidity.
Choice of sources of finance:
A Company Can Raise Funds From Different Sources E.G. Shareholders, Debenture Holders,
Banks, Financial Institutions, Public Deposits Etc. Before Raising The Funds, It Has To Decide
The Source From Which The Funds Are To Be Raised. The Choice Of The Source Of Finance
Should Be Made Very Carefully By Taking A Number Of Factors Into Account Such As Cost Of
Raising Funds, Conditions Attached, Charge On Assets, Burden Of Fixed Charges, Dilution Of
Ownership And Control Etc. For Example, If The Company Does Not Want To Dilute The
Ownership, It Will Depend On Any Source Of Finance Other Than Investment In Shares.
Management of cash:
It Is The Prime Responsibility Of The Finance Manager To See That An Adequate Supply Of
Cash Is Available At Proper Time For The Smooth Running Of Business. Cash Is Needed To
Purchase Raw Materials, Pay Off Creditors, To Pay To Workers And To Meet The Day To Day
Expenses Of The Business. Availability Of Cash Is Necessary To Maintain Liquidity And
Creditworthiness Of Business. Excess Cash Must Be Avoided As It Costs Money. If There Is Any
Cash Excess, It Should Be Invested In Near Cash Assets Such As Investment etc, Which May Be
Converted Into Cash Within No Time. A Cash Flow Statement Should Be Prepared By The

35. Department To Know The Correct Need Of Cash Is Essential To Achieve The Goal Of
Profitability And Liquidity.
Financial controls:
The Financial Manager Is Under An Obligation To Check The Financial Performance Of The
Funds Invested In The Business. There Are A Number Of Techniques To Evaluate The
Performance Viz. Return On Investment (ROI), Budgetary Control, Cost Control, Internal
Audit, Ratio Analysis And Break Even Point Analysis. The Financial Manager Must Lay
Emphasis On Financial Planning As Well.
Disposal of surplus:
One Of The Prime Function Of Finance Department Is To Allocate The Surplus, After Paying
All Taxes, The Available Surplus Of The Business Can Be Allocated For Three Purposes:
• For Paying Dividend To The Shareholders As A Return On Their Investment
• For Distributing Bonus To Workmen And Company’s Contribution To The Other Profit
Sharing Plans, And
• For Plugging Back Of Profits For The Expansion Of Business
As Far As The Second Alternative Is Concerned, The Amount To Be Paid To The Workers Is
Generally Fixed Either By Statute Or By Agreement And Therefore There Is No Problem In
Allocating Surplus For This Purpose.

36. FUNCTION OF FINANCE:-
The Most Important Function Of Finance Is The Management Of Money And The Deliverance
Of Financial Services. Other Than These Finance Studied Money And Assets Are How To
Control These Finance Studied Money And Assets And How To Control Them And Use Them
When The Time Is Right, Thus Keeping The Risk In View Evaluating And Understanding Risk Is
An Important Characteristic Of Finance.
The Two Main Areas Of Finance Are Corporate Finance And Personal Finance And Both Of
These Have Different Characteristics. Personal Finance Deals With The Credit, Borrowings And
Savings Of An Individual While Corporate Finance Deals With The Financial Strategies Of A
Business And With Portfolio Management For A Business
IMPORTANCE OF FINANCE:-
Finance Plays A Very Vital Role In The Day To Day Lives Of Each Individuals Or Corporation.
The Importance Of Financial Management Is Such That No One Can Ignore It And So, Here Is
An Attempt To Make You Aware About The Importance Of Finance In An Economy, And How
Good Is Financial Health Of Economy Important For Your Well Being.
IMPORTANCE OF FINANCIAL MANAGEMENT IN
PRESENT WORLD:-
Financial Management Has Proven To Be Beneficial In Various Walks Of Life. You First Need
To Understand What Financial Management Is, It Is The Act Of Maximizing One’s Wealth With
Deductive Thinking And A Number Of Steps. Financial Management Comes With Developing
Financial Goals That Will Help You Achieve Target. These Financial Goals Can Be Short Term
Or Long Term Depending On The Investment Retrieval.
The Three Steps Towards Financial Management May Term As- Financial Planning, Financial
Control And Financial Decision Making. Financial Management Helps Us To Review Our
Finances With The Help Of Accounting Report, Financial Ratios And Financial Statements.

37. RESERCH METHODOLOGY
To provide a comparative analysis of ISSCO (SAIL) financial performance various ratios are
calculated under this study like Inventory Turnover ratio, Current ratio , Quick ratio, Debt
equity ratio, Return on assets ratio, Assets turnover ratio.
SOURCE OF DATA : -
The present study is based on secondary data have been collected from different sources
such as
• Annual reports of ISSCO(SAIL).
PERIOD OF STUDY : -
The study covers the period of 5 years from 2018 – 2022
TOOLS & TECHNIQUES
For Analysing The Different Ratio Are Used Liked :-
1. Inventory Turnover Ratio :-
Cost of Goods Sold / Average Inventory
2. Current Ratio :-
Current Assets / Current Liabilities
3. Quick Ratio :-
Current Assets – Inventory / Current Liabilities
4. Debt Equity Ratio :-
Total Debt / Total Shareholder’s Equity
5.Return On Assets Ratio :-
Net Income / Average Total Assets
6. Asset Turnover Ratio :-
Net Sales/ Average Total Assets

38. ANALYSIS
1.Inventory Turnover Ratio :
Inventory turnover ratio is the number of times a company has sold and replenished its
inventory over a specific amount of times.
2.CURRENT RATIO :-
It is a leverage ratio. It indicates the liquidity or short -term solvency Ratio of the company.
It is calculated by dividing the current assets of the company by current liabilities.
YEAR RATIO
2018 0.68
2019 0.78
2020 0.91
2021 0.78
2022 0.73
0
2
4
6
RATIO
INVENTORY TURNOVER RATIO
2018 2019 2020 2021 2022
YEAR RATIO
2018 3.38
2019 3.43
2020 2.59
2021 3.53
2022 5.28

39. 3. Quick Ratio
It is a leverage Ratio. It indicates the liquidity or short – term solvency ratio of the company .
It is calculated by dividing the quick assets of the company by its current liabilities.
YEAR RATIO
2018 0.29
2019 0.31
2020 0.38
2021 0.36
2022 0.26
4. Debt Equity Ratio
It indicates how much portion of the banking business is financed through debt and how
much through equity . It is calculated by dividing the total borrowing by total equity which is
shareholder's worth. Higher ratio represents poor performance for the shareholder.
0
0.5
1
RATIO
CURRENT RATIO
2018 2019 2020 2021 2022
0
0.1
0.2
0.3
0.4
RATIO
QUICK RATIO
2018 2019 2020 2021 2022

40. YEAR RATIO
2018 1.14
2019 1.05
2020 1.23
2021 0.78
2022 0.25
5.Return On Assets Ratio
The term return on assets (ROA) refers to a financial ratio that indicates how profitable a
company is in relation to its total asset
YEAR RATIO
2018 -0.24
2019 1.99
2020 1.67
2021 3.47
2022 10.19
0
0.5
1
1.5
RATIO
DEBT EQUITY RATIO
2018 2019 2020 2021 2022

41. 6.Asset Turnover Ratio
It is an indicator of the efficiency with which a company is deploying its assets to produce
the revenue .
YEAR RATIO
2018 49.86
2019 56.78
2020 48.58
2021 57.95
2022 86.15
-2
0
2
4
6
8
10
12
RATIO
RETURN ON ASSETS
2018 2019 2020 2021 2022
0
20
40
60
80
100
RATIO
2018 2019 2020 2021 2022

42. CONCLUSION
The present study has brought out the various facts about the financial
performance of this Steel Industry. The suggestion made in this study of
immense use for this company to give appropriate decision for mitigating for
future financial problem. In order to sustain in the global competitive world, the
steel industry need to monitor its financial performance continuously. Based on
the analysis and its subsequent findings it is concluded that the ISSCO ( SAIL)
PLANT performed well and also have to take initiate steps to improve its
financial performance.

43. REFERENCES
BOOKS
➢ Financial Management Theory And Practice By Prassanna Chandra.
➢ Financial Management Theory And Practice By I. M. Pandey.
WEBSITES
➢ FINANCIAL YEAR BOOK OF ISP.
➢ FINANCIAL STATEMENTS OF SAIL.
➢ OFFICIAL LEDEGRS AND REPORTS OF ACCOUNTS IN ISP.
➢ www.google.com
➢ www.wikipedia.com
➢ www.sail.co.in