Industry

Topic: A Comparative Study of Financial Fundamentals
Objective and study plan of the project:

The main goal of the research is to gain more detail and knowledge about the following
objectives:
 Understanding the company background and Financials.
 Analyze company’s financial performance, cost management and budgeting.
 Understanding accounting processes, financial reporting, and internal controls
implemented in steel industry.
 Understanding the impact of Change in prices on Steel Industry.
 Name of the Organization: Evonith Metallics Ltd.
 Executive Guide: Anil Deshpande
 Email ID: adeshpande@evonith.com
 Department: Accounts and Finance .

Introduction
Literature Review
The Steel Industry have a very important role in the development of any country by supplying
raw materials needed to build numerous consumer goods, transportation networks, and
infrastructure. Steel’s significance as a major force for economic expansion and development
cannot be emphasized. Steel is the foundation of all globally infrastructure projects including
power plants, railroads, skyscrapers and bridges. Because of its strength, resilience and
adaptability, it is perfect for building society’s foundation. The adoption of renewable energy
sources and development of innovative technologies like electric arc furnaces have allowed steel
companies to reduce their carbon footprint. With the annual turnover of trillions of dollars, the
steel industry plays a significant role in the global GDP.
Additionally, it employs a large number of people, giving millions of jobs globally. Every job in
steel industry supports two or three additional jobs in linked sectors, according to the research by
Organization of Economic Co-Operation and Development (OECD). It is a strategically
important industry with a major diplomatic outcome is the steel industry. Nations possessing
robust steel industry frequently hold substantial economic and political sway in the international
arena. The importance of steel sector is influencing international relations is shown by trade
disputes and tariffs imposed on steel goods by different countries.
In conclusion, India’s Steel Industry is an important one, boosting the nation’s GDP, creating
jobs, and being a major factor in the industrial and economic development of the nation. To
maintain Industry’s growth and competitiveness, however, issues with energy efficiency,
productivity expansion, and trade liberalization must be resolved.
Steel Industries
The Indian Steel Industry is the major employer and contributor to the GDP, making it an
essential sector of the country’s economy. The following main ideas demonstrate the significance
of Indian Steel Sector.
1. Economic Contribution
2. Employment Opportunity
3. Raw Material Preparation
4. Energy Efficiency
5. Trade Liberalization
6. Working Capital Management
7. Manufacturing Capacity
The Steel industry’s expansion and development is greatly aided by the Indian Government these
are some significant ways that the government has helped the steel Industry which include-
1. Infrastructure development
2. Fiscal Incentives
3. Research and Development
4. Trade Policies
In order to assist and oversee steel industry, the Indian Government has put in the place a number
of important rules and regulations, including:
1. National Steel Policy (NSP)
2. Mines and Minerals Act, 1957
3. Foreign Direct Investment (FDI) Policy
4. Steel Scrap recycling Policy, 2019
5. Minimum Import Price (MIP) on Steel
6. Anti - Dumping Duties.
The Steel Industry in India faces several key challenges, including:
1. Regulatory Clearence and Environmental Issues

2. Tendering and Viability Challenges
3. Weak provider Skills
4. Domestic Demand Challenge
5. Global Competitiveness
6. Construction phase overruns and Disputes
The Indian Government has taken number of policy initiatives to address these issues, including
the National Steel Policy and steps to encourage Foreign direct Investment in the Industry. To
maintain long-term growth and sustainability.
Research Questions:
This research project will delve into the financial statements of Steel Industries and the
comparison with other companies in the same sector, and also will discuss about the steps that
could be taken to improve the financial performance of the industry.
The research will focus on the following questions which are crucial for understanding Steel
Industry:
Profitability and Financial Performance:
What are main profitability statistics of the Indian Steel Industry that have evolved over
time, such as operating margin and return on equity?
What connection exists between steel firms stock market performance and their financial
performance?
Challenges and Growth Prospectus:

What are the main challenges the Indian Steel sector must overcome to develop projects,
obtain regulatory approvals, and remain competitive globally?
What effects have trade restrictions, foreign direct Investment, and the National Steel
Policy had on the expansion and advancement of India’s steel sector?
Financial Reporting and Disclosure:

To what extend do the accounting disclosure seen in financial statements of Indian steel
businesses drawn in outside capital?
What connection exists between steel businesses capacity to generate cash and draw in
investors and the caliber of their financial reporting?
Working Capital Management:
What effect does efficient working capital management have on Indian steel businesses
profitability and competitiveness?
How do Indian Steel businesses maximize their financial success by managing their
working capital?
Recent years have seen a number of financial difficulties for the Indian steel sector, including
high projects commissioning costs, slow moving domestic demand, and problems with global
competitiveness. Steel Firms need to concentrate on a few crucial areas in order to get over these
obstacles. Increasing the operational efficiency of steel firms throughout the value chain is one
of the best strategies to improve their financial performance. This involves cutting energy use,
minimizing wastes, and optimizing industrial procedures.
Diversifying their product line is another way steel business reduces their financial risks.
Businesses can reach a variety of market suitable position and lessen their dependence on a
single product line by providing a greater selection of steel items. Steel Businesses ability to
manage their working capital effectively is essential to their financial stability. Steel firms can
increase their cash flow and lessen their dependence on outside funding by optimizing inventory
levels and extending payables.
In the past, Indian steel businesses have funded their operations and expansion ambitions mostly
through equity finance sources including corporate bonds, venture capital, and private equity to
rising cost of capital.
Data Collection:
This study will employ a mixed-methods approach, combining quantitative and qualitative
techniques to gather data to obtain a comprehensive picture of the obstacles that Indian Steel
industry confront.
1. Annual reports and Financial Statements –

The published annual report and financial statements of Indian steel business serves as the
main source of information for their financial accounts. These statements to be obtained
from the accounts and the finance department.
2. Industry Database and Reports –

The Indian steel industry’s financial and operational data is compiled in a number of
industry database and reports. Some examples Includes reports from industry association
like the Indian Steel Association.
3. Government Sources –
The officer of the Economic Advisor and the Ministry of Steel are two organizations run by
the Indian government that releases the reports and data about the steel sector, including
financial and production-related data.
4. Stock Exchange Filings –
The Stock exchange where publicly traded steel companies are listed, like the National
Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), provide the access to their
financial statements and other disclosures.
5. Interviews and Primary Surveys –

Interviewing Business executives, financial analysts, and specialized in the field can yield
extra information and data points not found in public sources.
Will also conduct primary surveys of Steel Industries to obtain operational and financial
data straight from the source.
Combining these sources will help in compiling extensive data for a detailed analysis of the
financial performance and difficulties encountered by the Indian Steel Sector.
Data Analysis –
Some of the techniques that are to be used for the process of Data Analysis Will Include:
1. Ratio Analysis - One of the essential Method for assessing the financial health of steel
sector businesses is ratio analysis. Some of the accounting rations include:
a) Liquidity Ratios – Absolute liquid ratio, Quick Ratio, and Current Ratio are used
to evaluate a company’s capacity to fulfill short – term obligations.
b) Solvency Ratios – Debt equity, total asset to debt, and interest coverage ratios are
among the ratios used to assess long – term financial health.
c) Turnover Ratios – Net Profit Margin, Operational Profit Margin, and Gross
profit margin are used to access a company’s capacity for making money.
2. Trend Analysis –
It is possible to spot trend and pinpoint areas for improvement or concern by examining
the trends in important financial measures over a number of years. Monitoring income,
costs, and profits over time to identify patters of growth or problems with cost
containment.
Keeping an eye on working capital elements like inventories and receivables to spot any
cash flow issues.
3. Comparing and Contrasting – A baseline evaluating relative performance is provided

by comparing the financial ratios and metrics of Steel firm to industry averages and top
performers. This might show where the business succeeds or falls short of its
competitors.
4. Analyzing Cost Structure – This include the study of various costs that are incurred by
the company which include:
a) Raw Material Costs

b) Energy Costs
c) Labor Costs
d) Overhead Costs
e) Capacity Utilization
References
1. Expansion, Prospective and Challenges of Steel Industry: A Study in Kalinga Nagar

Industrial Complex in Odisha
https://www.semanticscholar.org/paper/ea277651dc5ac91acc9c090d7cae5277e943964e
2. Financial Performance of Steel Industry in India
https://www.semanticscholar.org/paper/3f52ddd2a327a596a84729a76a24a907112b118b
3. Exports of Iron and Steel from India in Post-WTO Regime
https://www.semanticscholar.org/paper/c41a83159d1f4cbfd17c216145612f320e481869
4. A Study of Energy Efficiency in the Indian Iron and Steel Industry
https://www.semanticscholar.org/paper/c4f8d9b648378d8fe6b7cc64c4309aa468264fe8
5. Financial Performance of Selected Companies of Iron and Steel Industry in India
https://www.semanticscholar.org/paper/b51988eff43ecfbbed77b8c3c826e7020fcf0607
6. https://www.consultavalon.com/our-blog/challenges-for-the-steel-industry-in-india/

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Topic: A Comparative Study of Financial Fundamentals

Objective and study plan of the project:

 Name of the Organization: Evonith Metallics Ltd.

 Executive Guide: Anil Deshpande

 Email ID: adeshpande@evonith.com

 Department: Accounts and Finance .

1. Regulatory Clearence and Environmental Issues

Challenges and Growth Prospectus:

Financial Reporting and Disclosure:

1. Annual reports and Financial Statements –

2. Industry Database and Reports –

5. Interviews and Primary Surveys –

3. Comparing and Contrasting – A baseline evaluating relative performance is provided

a) Raw Material Costs

1. Expansion, Prospective and Challenges of Steel Industry: A Study in Kalinga Nagar

4. A Study of Energy Efficiency in the Indian Iron and Steel Industry

5. Financial Performance of Selected Companies of Iron and Steel Industry in India

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