Assessment of the Financial Position and Performance of the Chosen Companies Operating in the Iron and Steel Industry in India

Ritam Bhowmik

Master's thesis

Abstract:

Abstract: This thesis examines the assessment of the financial position and performance of the three chosen companies operating in the Iron and Steel Industry in India which are Tata Steel, JSW Steel and Steel Authority India Limited (SAIL). The review will examine the characteristics of Income statement, Balance Sheet, Cash flow statement and selected financial ratios of financial analysis of the Iron and Steel production companies in India. The financial position which is represented by Balance sheet (reported assets, liabilities) and financial performance represented by Income statement (reported expenses, revenues and profit) covering financial years 2017 to 2021 will be used to determine the growth of any industry by using vertical and horizontal analysis. This is also true in the case of the iron and steel industry. Several elements impact an organization's financial success, including cost, revenue. Many elements of the steel industry's financial performance may be examined, including financial facts, financial ratios, financial health, and financial strength, among others. The steel industry's operational and financial efficiency, which are connected to cost and revenue elements, can have an impact on financial performance. Return on assets and equity, Revenues and other financial variables are the strongest measures of financial performance. As a result, the problem of the steel industry's financial performance is intertwined with a variety of factors such as cost, revenue, capital, assets, and other associated variables. This research study examines the financial performance of a few Indian iron and steel firms. If an examination of all elements of the iron and steel business yields a clear picture of financial performance, it may be utilized to identify the potential financial problems and the most significant factors influencing the profit. In this regard, the researcher examined the performance of India's steel sector in terms of profitability, performance growth, and financial strength. References: Paul, P. and Mukherjee, P., 2016. A Critical Analysis of the Financial Efficiency of the Steel Industry in India. Asia-Pacific Journal of Management Research and Innovation, 12(3-4), pp.242-249. Chavda, C. and Dalvadi, Y., 2021. An Analytical Study on Financial Health of Selected Public Sector Companies of India Using Grover Model. RESEARCH REVIEW International Journal of Multidisciplinary, 6(2), pp.40-47. ALEXANDER, J. Financial Planning and Analysis and Performance Management. [elektronický zdroj] /. Newark: John Wiley & Sons, Incorporated, 2018. ISBN 9781119491439. HELFERT, E A. Financial analysis: tools and techniques: a guide for managers. New York: McGraw-Hill, 2001. ISBN 0-07-137834-0. INTERNATIONAL ACCOUNTING STANDARDS BOARD. International Financial Reporting Standards (IFRS) as issued at 1 January 2014. Part A, The Conceptual Framework for Financial Reporting, the Preface to International Financial Reporting Standards (IFRSs) and the consolidated text of IFRSs including International Accounting Standards (IASs) and Interpretations, as issued at 1 January 2014 (Glossary of Terms and index included). London: IFRS Foundation, 2014. ISBN 978-1-909704-25-1. INTERNATIONAL ACCOUNTING STANDARDS BOARD. International Financial Reporting Standards (IFRS) as issued at 1 January 2014. Part B, The consolidated text of documents accompanying the Conceptual Framework for Financial Reporting and International Financial Reporting Standards (IFRSs) including International Accounting Standards (IASs) and Interpretations, as issued at 1 January 2014, together with an IFRS Practice Statement and IFRS Foundation procedural documents (Glossary of Terms and index included). London: IFRS Foundation, 2014. ISBN 978-1-909704-27-5. MACKENZIE, B. Wiley 2013 interpretation and application of international financial reporting standards. Hoboken: Wiley, 2013. ISBN 978-1-118-27727-0. L, A.M., & P, A. (2020), ‘A Conceptual Study on Pu

Abstract:

blic Sector Accounting System: Benefits and Challenges’, VISION: Journal of Indian Taxation, vol. 7 , no. 1 , pp. 72-82. Rbi.org.in. 2021. Reserve Bank of India - Reports. [online] Available at: [Accessed 20 November 2021].

Keywords

Financial Statements, Financial Analysis, Financial Position, Income Statement, Expenses, Revenues, Profit, Financial Performance, Balance Sheet, Assets, Liabilities, Equity, Iron and Steel Industry

Language used: English

Date on which the thesis was submitted / produced: 30. 11. 2021

Thesis defence

• Supervisor: Ing. Enikö Lörinczová, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics Policy and Administration / Business Administration