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‘ Provide reasons in inancial nature or choosing  teel   ii.‘ Examine the ollowing actors or the ast three ears: a)‘ Price o the inished goods )‘ Volume roduced the coman c)‘ verage arket Price o the roduct d)‘ otal Volume roduced the market iii.  i.‘ Relate the rice changes o these two irms with rice movement in market or the last three ears.‘ Relate the volume roduced these irms with the total market volume or the three ears v.‘ Conclusion caturing the ollowing asects- a)‘ ummarising the trend anal sis alread carried out in oint . iv.‘ Break even volumes or each o the three ears or oth the comanies vi.

.iii).

iv)  .

v) )‘ nal sis o the current.

 c .relative)ositions o these irms in the market in the context o their ast erormance.

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the coman is among the to ive highest roit earning cororates o the countr . across ive continents.  is ndia's largest steel roducing coman .6c crore.  has ive integrated steel lants.ΠCrores .c. ith a turnover o Rs. he rou recorded a turnover o Rs. three secial lants. . and one su sidiar in dierent arts o the countr .  teel is among the to ten steel roducers in the world with an existing annual crude steel roduction caacit o around  million tonnes er annum and emlo ee strength o a ove .   and  EE are one o the leading steel roducers o india contri uting more than  o steel roduction in the market all together.

Œ Œc. *%)+*.6.cer share which leaed to Rs.6 % *%)+*. 6. has grown to Rs. c6.Œ c. c.6c c.er Œ .Œ . 6. Œ.6 c.  .0'% .Œ . . the growth o its share value has een considera l low. Œ .6 c.Œ . c.  s shares was Rs.6 ew ratios o the comanies showing their inancial status have een listed a ove. c. he anal sis o the given data states that %'% . Œ. *% Œ. Œ. Œ.cc ccŒ.c.Œ. 4.c . c /0.c Œ . cŒ .    s share when issued was Rs.  %1%23.         !"  !#  !$  !"  !#  !$ Ê%&%c.   making it a reasona le otion to invest in as it would get sae returns.. c. c. Œ c. Œ . er share in Œ .  Œ.6 c . 6 . c. .0'% c. '(%)(*%% .c .c c. c.cer share when issued.c Œ. c. Œ.c  .Œ c. his shows a consistent growth in the %'%1.6 -+).Œ c.c . . he % '% .Œ c.er share in Œ and Rs.6 . 6Œ million) in Œ . ))+*%% c .  c6. c. %)..6 cc . Œer share in Œ urther growing to Rs. c. But in comarison with  EE. Œ.

 in Œ which died to Rs. ormall this is considered good or a coman . he (%1=. Œ. n case o  . s the ))+*%% is Rs.  the current ratio is too high.    in comarison to . the quick ratio should e c:c or etter. then the coman ma not e eicientl using its current assets or its short-term inancing acilities. however this varies widel industr .6er share in Œ .c. n this case   520. his shows a consistent growth in their market value. .share in Œ urther growing to Rs.Œ. he ratio or Œ i. ))+*%%. are 6:. or arch Œ.9 and 6.. and !:".c. which clearl states that the current assets are more than the current lia ilities. Œ and Œ are 69"89:.< Ratios or all the  ears are considered good or the coman as well as investers. hese ratios are considered good or the coman . c. the greater the coman 's liquidit . n Œ the ratio is .867# and 6"< or the ear Œ.6 . in Œ due to recession ut again icked Œ making Rs. c which is also not considered or the coman as it states that the coman s current lia ilities have exceeded the current assets. he current ratio is an indication o a irm's market liquidit and a ilit to meet creditor's demands. Œ and Œ are 67$89#6 and !$6 he ratio or the ear Œ is considered satisactor or the coman as the current assets are more than the current lia ilities. Œ are 6!686.   was c . he two comonents are oten taken rom  .  or the ear Œ.Œ in Œ which grew to c. /0. Œ and Œ .Œ in Œ and again went down to Rs. earing or everage. t comares a irm's current assets to its current lia ilities. is a inancial ratio that measures whether or not a irm has enough resources to a its de ts over the next cŒ months. ormall Œ:c is the ideal current ratio. But in this case the resources o the coman have not een ull utilized. the ratio is also known as Risk. his shows a tremendous growth rate o the %'%.  a coman 's current assets exceed current lia ilities. n comarison to this.Œ .=%23. is considered good or the coman while the ratio or the next two ears are not satisactor or the coman . cceta le current ratios var rom industr to industr .er share in Œ and Rs. the higher the ratio. the %). then it is generall considered to have good short-term inancial strength. n Œ the current ratio is .6. n the other hand 20.  current lia ilities exceed current assets . which is not good or the coman .e. . he %). or liquid ratio measures the a ilit o a coman to use its 6  or quick assets to immediatel extinguish or retire its current lia ilities. making it a ver good et to invest in. then the coman ma have ro lems meeting its short-term o ligations. n this case   5%).>  is a inancial ratio indicating the relative roortion o shareholders' equit and de t used to inance a coman 's assets.c. n general. uick assets include those current assets that resuma l can e quickl converted to cash at close to their ook values. Closel related to leveraging. enerall .or Œ.

the irm's alance sheet or statement o inancial osition .

 are !. i the coman 's de t and equit are u licl traded.<8!7$ and 6!#. n this case   5(%1%23. imilarl in case o  8 the (%1%23. ?    Ê@ Ê Ê       ‘   Ê  Ê   A Price o the inished goods is derived dividing the total sales o the coman with the total quantit sold. hese ratios are also considered good or the investers as ever c ruee invested in the coman the de t ratios are !. Œ and Œ are !7$86!# and 69< are good or the coman as well as investers as or ever c ruee invested the the share holders the de t ratio is . or the ear Œ. or using a com ination o ook value or de t and market value or equit .<8!69)(!.so-called ook value). ut the ratio ma also e calculated using market values or oth.!.<8!69 and !." or  ears. Price o inished goods  ales  ales quantit   PRCE  ED D   EE  :  ."8 which considered ver sae rom investers oint o view.

))% %.        )%( +.) 6Œ66.  c.Œ c cc.Œ % /)3 %% cc6c ccc 6 c     Œ  6 6 Œ .( 9!.6"#$9 9:"7$7# <!:7$:< *%% .::#" 9<9<67! 9$$9!#7 9.       Œ6- Œ- Œ- Œ6-Œ Œ- Œ- % .))% ..  Œ. c6cc. c c.

        ‘ &  B   Ê      he average market rice o a roduct can e derived taking into consideration the roduct rices o our comanies and dividing it .Œ. .ŒcŒ6.Œ . cŒ .Œ. 1‘ &    4  A  he volume o the total steel in     roduced the comanies are:    %      arch Œ c.  arch Œ c.  .cŒ  .c arch Œ c. . verage market rice o the roduct  Price o cst coman Œnd coman rd coman rth coman   6 .

-*)%C'%+%-0%*%      .  .DA .c .6c .66. . :. 6 .   .6 .  .6 E@  Œ .$8#9"## 9986:!!# 9#8:$":#              (‘ &    4  B   he volume roduced the market is derived adding u the total roduction o the to ten manuacturers in the market.Œ .6 Œ.cŒ6.%.-*)% Œ6-Œ Œ-Œ Œ-Œ    Œ.. .66      Œ.6  . %%. ive comanies amongst the to steel manuacturers have een taken into consideration.Œ .c.c. n order to get the volume o steel roduced the market.  .6 ..    . as not all the to ten steel comanies manuacture the same categor o steel which has een selected or this assignment.Œ6 &  B  .6Œ.

!!#=.!!" .98::#87!$ .-*)% .!!"=.!!7=.867:876< .!!# .!!$     Œ   c     cŒcŒ6 cŒ cŒ  cŒ cŒ E@  Œc  6 Œcc Œ c 6      cŒc c     Œ c  66 c 6  &   .986"68#7$              Ê    @Ê @   &    B Ê         EEs rice change in relation with the market rice is:  ..he Volume Produced the market in metric tonne is as ollows: .

c .6 F6!9:.Œ .))% arch Œ Œ . .  .     &    4   Ê @     B  &  Ê       EEs volume in relation with the total market volume roduced: .. arch Œ .   . ÊÊ      *%-%   *%-% . .6 F6!9:.))% arch Œ Œ . . ÊÊ      *%-% B   *% . arch Œ . Œ.c .  F6!:6.6 . . 6 .   &  B    5 .  . s rice change in relation with the market rice is:    &  B   5B  . F6!6<. arch Œ .  F6!"#. .))% .))% -%.c.. arch Œ .c.6 F6!"$.

6c cŒcŒ6 :<"6. arch Œ Œ.96$.cc. 6   .6c  Œ  . s volume in relation with the total market volume roduced:         5   B  . .c6 . 4 B & &  Ê Ê     Ê4      he reak-even oint .<. ÊB      arch Œ ŒŒ.6 cŒ cŒ  :96$.. ÊB         arch Œ ŒŒ.c6 .6  c . 6 cŒ cŒ :<"6.!7.. arch Œ Œ.          5 B  . arch Œ Œ. arch Œ Œ. .cc..

 roit or a loss has not een made. although oortunit costs have een aid. exected return.BEP) is the oint at which cost or exenses and revenue are equal: there is no net loss or gain. and one has ! roken even!. and caital has received the risk-adjusted. c .

we need to determine the ixed and varia le costs involved in the manuacturing o the roduct.D%.4 B & GÊ ?  >  4     H& 4   n order to achieve the reak even oint. n case o    teel: Ê ?  = D)(%*.

8%-*. %.3%%.)(%)+.

hese comanies have had a ver sta le inancial grounds insite o the inlation and recession. he steel rices hiked in Œ- . more than the average market rice in Œ . t the same time. quick ratios and de t equit ratios are ver sta le and suita le or investers to get a good return. he rice o  EE has een c. s these exenses would remain ixed irresective o volume roduced the coman making them ixed in nature. B anal zing the inancial reorts o the selected comanies we derive that oth  EE and  contri ute more than  o the market share in the steel market all together. rom an investers oint o view these comanies are a sae et to invest in as their share value.). & 4  = D)(%.c which is a great amount. ut it did not aect these comanies on a large scale. oreover. the steel king- which takes u almost  o the market share is currentl contri uting around Œ..  more than the average market rice o steel in Œ . Both comanies have a slight rice dierence or structural steel. t contri utes around Œ.     EE   are oth one o the leading steel manuacturers o ndia. current ratios. the total market share o  has increased signiicantl over the ew ears. hile on the other hand s rice is more than c.%I*%)% s these exenses would var with the volume roduced the coman making them varia le in nature. hus oth the comanies la a ver vital role in the ndian steel market.c  o volume to the total market in Œ .   cc .(-). D-%8-) )+%I*%)%C -%)%.

REFERENCES www.org www.com capital line     cΠ.moneycontrol.wikipedia.