6. synopsis of tata steel

8/2/2019 6. SYNOPSIS of Tata Steel

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CENTRE POINT COLLEGE

SYNOPSIS

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A

SYNOPSIS

ON

AN ANALYTICAL STUDY OF RATIO ANALYSIS OF

TATA STEEL LIMITED

Submitted to the

Department of Business Management

CPC, Nagpur

for

BBA-III

Submitted by

SWATI RAKHECHA

HARSHA NAGOTRA

Project Guide

Mr. CHETANYA SAKHARE


7, Nawab layout, Tilak Nagar, Nagpur

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2008-2009

CONTENTS OF INDEX PAGE

1) Introduction

2) Significance Rational

3) Objectives

4) Hypothesis

5) Research Methodology

6) Method of Collection of Data

7) Primary of Data

8) Secondary Data

9) Expected contribution

10) Chapterisation

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INTRODUCTION

Financial management seeks to plan for the future such that a personal or

business entity has a positive flow of cash. The term financial management has

a number of meanings including the administration and maintenance of financial

assets. The process of financial management may also include identifying and

trying to work around the various risks to which a particular project may be

exposed.

DEFINITION

Financial management is concerned with the managerial decisions that result in

acquisition and financing of short term & long term credits for the firm.

-PHILLIPPATUS

When the project is prepared it includes all the aspects of projects like companys

product and its market, manufacturing process, operational viability, its financial

projection and various ratios. This help the management to understand weather

the project is practically possible or not. Ratio analysis gives the idea about the

profitability of the project.

By studying the various ratio and other related aspects of the project report

presented to them for finance bank or financial institutions come to know various

aspects such as its technical feasibility, economical feasibility, financial feasibility,

marketability etc and the financial institutions/banks provide the finance to the

company.

Project report gives projected financial statements and on the basis of that ratios

are calculated. Ratio analysis helps in judging the operational efficiency of themanagements ability to reply short and long term loans, doing inter-firm

comparison and to assess the future growth of the company. The ratio analysis

of the company is done before investing or providing credit to the company.

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SIGNIFICANCE

1. Ratio analysis simplifies, summarizes & systematizes a long array of

accounting figures.

2. The main contribution of Ratio Analysis lies in bringing the

interrelationship which exists between various segments as expressed

through accounting statement.

3. It is an instrument for diagnosis of the financial health of an enterprise.

4. It is an invaluable tool to the management for discharging its basic

function as forecasting, planning, co-coordinating & control.

5. It facilitates easy communication of information.

6. It discloses the changes in the financial position of an organization

between two periods.

7. It also facilitates interfirm comparison.

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OBJECTIVES

1. To study the profitability: Accounting ratio help to measure the

profitability of the business by calculating the various profitability ratios.

2. To study the solvency:With the help of solvency ratios, solvency of thecompany can be measured. These ratios show the relationship between

the liabilities and assets.

3. To analyze the financial statement of the company: Ratio analysishelp the outsiders just like creditors, shareholders, debenture-holders,

bankers to know about the profitability and ability of the company to pay

them interest and dividend etc.

4. To study the operating efficiency:Ratio analysis helps to workout theoperating efficiency of the company with the help of various turnover

ratios.

5. To analyze the performance of the company: With the help of ratio

analysis a company may have comparative study of its performance to the

previous years.

6. To provide recommendations and suggestions based on findings:

Accounting ratios are very useful as they briefly summaries the result of

detailed and complicated computations

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HYPOTHESIS

The hypothesis taken under consideration is:

1. Ratio analysis serves as an effective tool in projection of future.

2. At the time of project appraisal different ratios gives financial feasibility to

the project in future.

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RESEARCH METHODOLOGY

It is a way to systematically solve the research problem. It may be understood as

a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research

problem along with the logic behind him. It is necessary for the researcher to

know not only the research methods or techniques but also the methodology.

The research methodology which used for the study is observation

method.

The research procedure involves the following basic elements:

1. Selection of subject

2. Selection of title of dissertation

3. Selection of time period

4. Collection of data

5. Reliability of data

6. Analysis of data

7. Reporting

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DATA COLLECTION AND ANALYSIS

DATA COLLECTION

The researcher can gather secondary data, primary data or both. Primary data

are data gathered for a specific purpose or for a specific research project.

Secondary data are data which do not originate from the investigator but

which are which are already collected for some other purpose and can be used

for the study purpose.

Secondary data are in the form of finished goods.

It includes:

a. Financial statements

b. Journals

c. Books

d. Net

The source of data which is required for the study is secondary data

and appropriate source is taken under consideration:

Sample universe

Sample size

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Library Research

This is the type of research which is used based on the books,

periodicals,journal,domentation,secondary data, etc which are

available in the library. The researcher depends and has to depends,

only on the materials which can be collected from library sources.

Many social sciences researchers now a day make use of this method

mainly because of its convienense. Morever individual researches find

it suitable from the point of view of economy of time resources and

manpower. However for want of adequate primary data and access to

actual life situation, the observations and conclusion often turn out to

be bias.

There is also a danger of deterioration in the standard of the report

to the level of hotchpotch compliation.However the library research

method is widely used especially in social sciences. Many such

compilation of work however can be very seldom be called research

and a sort of confusion exist regarding the process of research in the

minds of many.

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EXPECTED CONTRIBUTION

Based on our study the researcher will be making analysis to help to improve the

financial position of tata steel limited and based on the study conclusions will be

drawn, the researcher will be making suggestion to the management of the

company to overcome the weaker areas and help in its decisions making process

which may result in financial gain for the investors.

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Chapterization

The final report will be consisting the following

1. Introduction.

2. Company Profile.

3. Research Study

Problem Definition.

Theoretical Prospective.

Objective of the study.

Scope of the Study (Research boundaries).4. Research Methodology.

5. Data Collection.

6. Data Analysis and Interpretation.

7. Findings and Report Generation.

8. Conclusion.

9. Recommendation and Suggestion.

10.Limitations.

11.References.

12.Annexure.

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6. synopsis of tata steel

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