This document provides an overview and summary of a student's MBA project analyzing financial statements of steel companies in India. The project examines Tata Steel and Steel Authority of India Limited (SAIL) using ratio analysis. It begins with introductions to financial statement analysis and the Indian steel sector. It then provides overviews of Tata Steel and SAIL. The core of the project involves calculating financial ratios for each company from their annual reports and analyzing and comparing their performance and positions. The conclusion recommends which company has the stronger position based on the ratio analysis.

1. I
PREFACE
This report has been prepared as part of my grand project, as a part of
MBA. The report is prepared with the view to include all the details regarding
the project that I carried out.
The initial portion is the description and study of financial statement and
the steel industry, its history and its current scenario. How the steel Sector has
taken a full circle from earlier being private, later it being handed over to the
Govt. and now once again with liberalization the sector is open to private
players. After taking the macroscopic view, I have given a microscopic view of
the sector by studying the major two companies those are TATA STEEL &
SAIL. All the details of the companies where I have studied is mentioned in the
initial part of the report. Next the second portion is regarding the core project –
FINANCIAL STATEMENT ANALYSIS THROUGH RATIO ANALYSIS.
In this project I had taken various types of ratio for describing and for
comparison of these both companies. Thus, as you go ahead the report will
reveal minute details of the work that I have done in my grand project.

2. II
ACKNOWLEDGEMENT
I express my sincere thank to all those who undoubtedly supported me in
conducting project report entitled "FINANCIAL STATEMENT ANALYSIS
ON STEEL COMPANIES WITH SPECIAL REFERENCE TO RATIO
ANALYSIS."
I take this opportunity to thank PROF. PRIYANKA BHATTI and
PROF. DEVANG VAGHELA of H.N.SHUKLA.COLLAGE OF
MANAGEMENT STUDIES. for giving me a opportunity to do this project
under them both, and also for giving such knowledge and support.
Last but not the least; I am grateful to my parents, friends and all those
who has supported directly or indirectly during the project.
Date:
Place: Rajkot
Maulik bhatt

3. III
DECLARATION
I the undersigned Maulik. Y. bhatt a student of M.B.A 4TH SEM. hereby
declare that the project presented in this report is in my own words and has been
carried out under the supervision and guidance of prof. priyanka bhatti & prof.
devang vaghela of H.N.Shukla College of Management Studies.
The work has not been submitted to any other university for any
examination.
Date:
Place: Rajkot
Maulik bhatt

4. IV
EXECUTIVE SUMMARY
This Report starts with the first chapter, which is giving basic information
about the financial statement analysis.
In the second chapter there is a short description about the steel industry
is given. The third chapter describes the information of TATA STEEL &
STEEL AUTHORITY OF INDIA LTD.
The fourth chapter describes the financial statements of both companies.
Calculation of ratios are shown in the next chapter. In fifth chapter the analysis
and interpretation is described which is the core part and research analysis of
this project.
The conclusion and the suggestion about the whole report tells which is
the best company which have strong position in various terms.
Date:
Place: Rajkot Maulik bhatt

5. V
NO. CONTENTS PAGE NO.
1. INTRODUCTION OF FINANCIAL STATEMENT 01
2. INTRODUCTION OF STEEL SECTOR 09
3. OVERVIEW OF TATA STEEL 19
4. OVERVIEW OF SAIL 30
5. ANNUAL REPORT OF TATA STEEL 44
6. ANNUAL REPORT OF SAIL 47
7. RESEARCH METHODOLOGY 50
8. RATIO TABLE OF TATA STEEL 51
9. RATIO TABLE OF SAIL 52
10. ANALYSIS AND INTERPRETATION 53
11. CONCLUSION 105
12. FINDINGS 106
13. SUGGESTION 107
14. BIBLIOGRAPHY 108