Sheet1

1.) Liquidity Ratios:

1

Current Ratio
Particulars
Inventory
Sundry debtors
Cash & bank
Other Assets
Loans & advances
Current assets
Current liabilities
Current ratios

Quick / Liquid Ratio

Particulars
Sundry debtors
Cash & bank
Other assets
Loans & advances
Liquid assets
Current liabilities
Liquid ratio
3

Absolute / Cash Ratio

Particulars
Cash & bank
Absolute Assets
Current liabilities
ABSOLUTE LIQUID RATIO

Currrent Assests/ Current Liability

2005-06
2006-07
2007-08
2008-09
1216.45
1203.24
1761.15
3215.28
165.65
216.8
93.41
191.27
5621.7
7194.68
7699.11
6624.17
184.36
314.48
292.43
258.91
1063.84
1518.9
1958.49
1569.69
8252.00
10448.10
11804.60 11859.32
1587.86
2104.30
3191.62
4181.32
5.20
4.97
3.70
2.84
5.196931719
4.965119 3.69862327 2.8362622
Liquid Assests/ Current Liability

2009-10
2451.52
181.18
5415.54
137.4
1365.02
9550.66
4307.84
2.21
2.21704149

2005-06
2006-07
2007-08
2008-09
165.65
216.8
93.41
191.27
5621.7
7194.68
7699.11
6624.17
184.36
314.48
292.43
258.91
1063.84
1518.9
1958.49
1569.69
7035.55
9244.86
10043.44
8644.04
1587.86
2104.30
3191.62
4181.32
4.43
4.39
3.14
2.06
4.430837731 4.3933184 3.14681572 2.0672993
Absolute Assests/ Current Liability

2009-10
181.18
5415.54
137.4
1365.02
7099.14
4307.84
1.65
1.64795814

2005-06
5621.70
5621.70
1587.86
3.50
3.540425478

2009-10
5415.54
5415.54
4307.84
1.26
1.25713583

2006-07
2007-08
2008-09
7194.68
7699.11
6624.17
7194.68
7699.11
6624.17
2104.30
3191.62
4181.32
3.42
2.41
1.58
3.4190372 2.41228906 1.5842294

2.) Leverage Liquidity ratios:

1

Debt Equity Ratio

Particulars
Secured loans
Unsecured loans
Outsiders funds
Shareholders funds
Debt equity ratio

Interest Coverage Ratio

Outsider's Fund/ Shareholders Fund

2005-06
173.87
369.44
543.31
8173.70
0.13
0.07

2006-07
604.45
312.51
916.96
9538.20
0.19
0.10

EBIT/Fixed Interest

Page 1

2007-08
332.78
107.95
440.73
11481.04
0.08
0.04

2008-09
907.72
100.04
1007.76
12419.91
0.16
0.08

2009-10
407.28
825.27
1232.55
12885.00
0.19
0.10

Sheet1

Particulars
EBIT
Fixed interest
Interest Coverage Ratio

2005-06
1920.57
31.06
61.83
61.83419189

Proprieatery Ratio

Shareholders Funds/ Total Assets

Particulars
Share holders funds
Total assets
Proprietary Ratio

2005-06
2006-07
2007-08
7827.31
7827.31
7827.32
1051.99
12835.80
15276.51
744.05%
60.98%
51.24%
744.05%
60.98%
51.24%
Total Liability of outsiders/ Total Assets

Solvency Ratio
Particulars
Secured loans
Unsecured loans
Total liabilities to outsiders
Total assets
Solvency ratio

2005-06
173.87
369.44
543.31
10511
5.10%
5.17%

Funded debt to total Capitalizaton

2006-07
2007-08
2008-09
2270.76
3026.93
2114.06
48.42
31.57
88.14
46.90
95.88
23.99
46.89715 95.8799493 23.985251

2006-07
604.45
312.51
916.96
12835.8
7.10%
7.14%

2007-08
332.08
107.95
440.73
15276.51
2.80%
2.89%

2009-10
1325.20
19.76
67.06
67.0647773

2008-09
7827.32
17733.43
44.14%
44.14%

2009-10
7827.31
18523.21
42.26%
42.26%

2008-09
907.72
100.04
1007.76
17733.43
5.68%
5.68%

2009-10
407.28
825.27
1232.55
18522.96
6.65%
6.65%

Fund Debt/Total Capitalization

Table Showing year wise funded debt to total

Particulars
2005-06
Secured loans
173.87
Unsecured loans
369.44
Funded debt(A)
543.31
Total Funds (B)
8173.70
Total capitalization (A/B)
6.60%
6.65%

2006-07
604.45
321.51
916.96
9538.20
9.60%
9.61%

2007-08
332.78
107.95
440.73
11481.04
3.80%
3.84%

2008-09
907.72
100.04
1007.76
12419.91
8.00%
8.11%

2009-10
407.28
825.27
1232.55
12885.00
9.50%
9.57%

3. ) Activity Ratio :1

Inventory Turn Over Ratio

PARTICULARS
Net sales
Avg inventory
Inventory Turnover Ratio {times}

Net Sales /Average Inventory

2005-06
7305.71
1236.99
5.91
5.906038044

Inventory Conversion Period

Particulars
No. of working days
Inventory turnover ratio

2006-07
2007-08
2008-09
7932.66
9088.37
9128.38
1210.80
1482.20
1622.14
6.55
6.13
5.62
6.5515857 6.13167589 5.6273688

2009-10
9809.15
2833.40
3.46
3.46197148

Number of working days/Inventory Turn over ratio

2005-06
365.00

2006-07
365.00

2007-08
365.00

2008-09
365.00

2009-10
365.00

5.91

6.55

6.13

5.62

3.46

Page 2

Sheet1
Inventory conversion period [ Days ]
3

Debtor Turn over Ratio

Particular
A. net sales
b. average trade debtors
Debtor Turn over Ratio [ times ]

62
61.75972927

2005-06
7305.710
107.480
68.000
67.97273911

Average Collection Period

PARTICULARS
No of working days
Debtors turnover ratio
Avg.collection period [ days ]

2005-06
365.00
60.97
5
5.986550763

Working Capital Turnover Ratio

PARTICULARS
2005-06
a.net sales
7305.71
b. net working capital
6664.14
Working capital turnover ratio(a/b) [ Times ]
1.1

1.096271987

56
60
53
50
55.725191
59.54323 64.946619 105.491329
Net Credit annual Sales/Average Trade Debtors
2006-07
7932.660
191.540

2007-08
9088.370
155.100

2008-09
9128.380
142.340

2009-10
9809.150
186.230

41.000
59.000
64.000
53.000
41.415161 58.5968407 64.130814 52.6722333
No. of Working Days/Debtors Turn over Ratio

2006-07
365.00
41.48
9

2007-08
365.00
58.59
6

2008-09
365.00
64.13
6

2009-10
365.00
52.67
7

5.691564

6.92994114

2008-09
9128.38
7678.00
1.18

2009-10
9809.15
5242.82
1.87

0.9507251 1.05519583 1.1889008

1.8709683

8.7994214 6.22973204
Net Sales/ Working Capital
2006-07
7932.66
8343.80
0.95

2007-08
9088.37
8612.97
1.05

4. ) Profitability Ratio :1

Gross Profit Ratio

PARTICULARS
a. gross profit
b. net sales
Gross profit Ratio A/B

Gross Profit / Net Sales *100

2005-06
1921.00
7314.00
26.26
26.26%

Operationg Profit Ratio

PARTICULARS
Operating profit
Net Sales
Operating profit Ratio

2005-06
2011
7314
27.50%
27.50%

Net Profit Ratio

PARTICULARS
A.net profit
B. net sales

2005-06
1252.37
7305.71

Page 3

2006-07
2271.00
7933.00
28.63

2008-09
2115.00
9128.00
23.17

2009-10
1326.00
9809.00
13.52

28.63%
33.31%
23.17%
Operating Profit / Sales *100

13.52%

2006-07
2339
7933
29.50%

2007-08
3027.00
9088.00
33.31

2007-08
3325
9088
36.60%

2008-09
4988
9128
54.70%

2009-10
2451
9809
25.00%

29.49%
36.59%
Net Profit / Sales *100

54.65%

24.98%

2008-09
1335.57
9128.38

2009-10
796.67
9809.15

2006-07
1363.43
7932.66

2007-08
1942.74
9088.37

Sheet1
Net profit ratio(A/B)

17.14%

17.14234482
PROFITABILITY RATIOS BASED ON INVESTMENT:
4

Return on Shareholder Investement

2005-06
1252.37
8173.70
15.32%
15.32

Return on Equity Capital

2005-06
1252.37
4890.00
25.61
25.61%

Earning Per Share

PARTICULARS
Earning available to equity shareholders
No. of equity shares (in crs)
Earning per share

14.63%

8.12%

17.187551 21.3761103 14.630964

8.1217027

2006-07
1363.43
9538.20
14.29%
14.29

2007-08
1942.74
11481.04
16.92%
16.92

2008-09
1335.57
12419.91
10.75%
10.75

2009-10
796.10
12885.00
6.18%
6.18

Net Profit ( After Interest & Tax )/ Equity Capital

PARTICULARS
A.net profit
B.equity share capital
Return on equity capital
6

21.00%

Net Profit ( After Interest & Tax )/ Share Holders Fund*100

PARTICULARS
A.net profit
B.share holders funds
Return on investment(A/B)

17.18%

2005-06
1252.37
4.89
256.12
256.1083845

Return of Capital Employed

PARTICULARS
A.net profit
B.capital employed
(incl. term deposits)
Return on capital employed

2005-06
1252.37
8493.00
14.80%
14.7459084

2006-07
2007-08
2008-09
2009-10
1363.43
1942.74
1335.57
796.67
4890.00
4890.00
4890.00
4890.00
27.88
39.73
27.31
16.29
27.88%
39.73%
27.31%
16.29%
Earning available to Equity Share holders/ Nos. of Equity Share
2006-07
2007-08
2008-09
1363.43
1942.74
1095.00
4.89
4.89
4.89
278.83
397.30
223.93
278.82004 397.288344 223.92638
Net Profit / Capital Employed
2006-07
1363.43
9427.00

2007-08
1942.74
9935.00

2009-10
556.89
4.89
113.89
113.883436

2008-09
1335.57
7892.00

2009-10
796.67
5476.00

14.50%
19.55%
17.00%
14.463032 19.5545043 16.923087

14.60%
14.548393

Return of Capital Employed

14000.00
12000.00
10000.00
8000.00
6000.00
4000.00
2000.00
0.00

19.55%
17.00%
14.80%

14.60%

14.50%

5.11%
1252.37
8493.00

1363.43
9427.00

1942.74
9935.00

1335.57
7892.00

796.675476.00

658.49
12885.00

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

A.net profit

B.capital employed
(incl. term deposits)

Page 4

Return on capital employed

Sheet1

(incl. term deposits)

Indian Steel Industries : Prodcution for Sale ( in million tonnes )

Categories
2007-08
2008-09
2009-10
2010-11
Pig Iron
5.28
6.21
5.88
5.68
Sponge Iron
20.37
21.09
24.33
25.08
Total Finished Steel ( Alloy + Non Alloy )
56.07
57.16
60.62
68.62

2011-12
5.78
20.37
73.42

Indian Steel Industries : Prodcution for Sale ( in million tonnes )

30.00
25.00

73.42

68.62
60.62

57.16

56.07

20.00
15.00
10.00
5.00
5.28

6.21

20.37

5.88

21.09

24.33

5.68

25.08

5.78

0.00
2007-08

2008-09
Pig Iron

2009-10

Sponge Iron

Page 5

2010-11

2011-12

Total Finished Steel ( Alloy + Non Alloy )

Sheet1
Current Ratio
14000.00

5.20

4.97

12000.00
2010-11
3254.71
330.61
1998.89
75.96
1965.04
7625.21
4607.49
1.65
1.654959642

10000.00

3.70

8000.00
6000.00
4000.00

8252.00

2000.00
3017.72

0.00

11804.60

10448.10

1587.86

5242.82

2104.30

2005-06

3191.62

2006-07

2007-08
Current assets

Current liabilities

Liquid Ratio
2010-11
330.61
1998.89
75.96
1965.04
4370.50
4607.49
0.95
0.948564186

12000.00

4.43

4.39

10000.00
3.14

8000.00
6000.00
4000.00

10043.44

9244.86
7035.55

2000.00
1587.86

2010-11
1998.89
1998.89
4607.49
0.43
0.433834908

2010-11
274.89
861.87
1136.76
13229.22
0.09
0.09

2104.30

3191.62

0.00
2005-06

2006-07

2007-08
Liquid assets

Current liabilities

Absolute / Cash Ratio

9000.00
8000.00
7000.00
6000.00
5000.00
4000.00
3000.00
2000.00
1000.00
0.00

3.50

3.42

2.41

7699.11

7194.68
5621.70

1587.86

2104.30

2005-06

2006-07
Absolute Assets

Page 6

3191.62

2007-08
Current liabilities

Sheet1
2010-11
1146.21
115.20
9.95
9.949739583

1325.2

Current liabilities

Interest Coverage Ratio

3500.00
3000.00

21.84
2.08

2500.00

19.9

95.88

61.83

2000.00
2010-11
7827.31
19053.11
41.08%
41.08%

Absolute Assets

46.90

1500.00
1000.00

3026.93

2270.76

1920.57

500.00

31.06

48.42

31.57

0.00
2005-06
2010-11
274.89
861.87
1136.76
19053.11
5.97%
5.97%

2006-07

2007-08
EBIT

Fixed interest

Proprieatery Ratio
744.05%

25000.00
20000.00
15000.00

2010-11
274.89
861.87
1136.76
13229.22
8.59%
8.59%

10000.00
5000.00
13229.22

7827.31
1051.99

60.98%
7827.31
12835.80

51.24%
7827.32
15276.51

2006-07

2007-08

0.00
2005-06

Share holders funds

Inventory Turn Over Ratio

2010-11
10471.18
2853.12
3.67
3.670080473

6.55

12000.00

6.13

5.91

10000.00
8000.00
6000.00
4000.00

5706.23
5020.39
2510.195

2853.115

9088.37

7932.66

7305.71

2000.00
2010-11
365.00

1236.99

1210.80

1482.20

0.00
2005-06

2006-07

3.67

Net sales

Page 7

2007-08
Avg inventory

Sheet1

Net sales

99
99.45504087

Avg inventory

Inventory Conversion Period

2010-11
10471.180
276.380
38.000
37.88689485

2010-11
365.00
37.89
10

400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00

552.75
276.375 62

60

56

365.00

365.00

365.00

5.91

6.55

2005-06

6.13

2006-07

2007-08

No. of working days

Inventory turnover ratio

9.633148588

Average Collection Period

2010-11
10471.18
3017.72
3.47

3.469897804

400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00

6
365.00

365.00

60.97

365.00

41.48

2005-06

58.59

2006-07

2010-11
1147.00
10471.18
10.95

2007-08

No of working days

Debtors turnover ratio

Gross Profit Ratio

10.95%

33.31

12000.00
2010-11
2776
10471
26.51%
26.51%

10000.00

28.63

26.26

8000.00
6000.00
4000.00
2000.00

2010-11
658.49
10471.18

1921.00 7314.00

2271.00 7933.00

2005-06

2006-07

3027.00

9088.00

0.00
2007-08
a. gross profit

Page 8

b. net sales

Sheet1
a. gross profit

6.29%

b. net sales

6.288594027

Net Profit Ratio

e Holders Fund*100

12000.00

2010-11
658.49
13229.00
4.98%
4.98

10000.00

21.00%
17.14%

17.18%

1252.37 7305.71

1363.43 7932.66

1942.74 9088.37

2005-06

2006-07

2007-08

8000.00
6000.00
4000.00
2000.00

2010-11
658.49
4890.00
13.47
13.47%
ers/ Nos. of Equity Share
2010-11
420.00
4.89
85.89
85.88957055

0.00
A.net profit

Return on Equity Capital

6000.00
205.6229
5000.00 464
4000.00 92.89

236.466335

25.61

27.88

3000.00
2010-11
658.49
12885.00
5.11%
5.110516104

1.010630118

2000.00
1000.0012885

1252.37 4890.00

1363.43 4890.00

2005-06

2006-07

1942.74
4890.00

0.00
A.net profit

25.00%
20.00%
15.00%
5.11%

0
39.73
236.466335
#VALUE!

10.00%
5.00%

658.49
12885.00

0.00%
2010-11

Page 9

2007-08
B.equity share capital

Sheet1

Categories
2007-08
5.08

Categories
Total Finished Steel ( Alloy + Non Alloy )

Indian Steel Industries : Exports ( in million tonnes )

6.00
5.00
73.42

5.78

20.37

80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00

4.00
3.00

5.08

2.00

4.44

1.00
0.00
2007-08

2008-09

2009-10

Total Finished Steel ( Alloy + Non Alloy )

2011-12

Page 10

Sheet1
Current Ratio
6.00
5.00
4.00
2.84

3.00

2.21

11859.32

1.65

9550.66

7625.21

2.00
1.00

3191.62

4181.32

4307.84

4607.49

0.00
2008-09
Current liabilities

2009-10

2010-11

Current ratios

Liquid Ratio
5.00
4.00
3.00
2.06
1.65

2.00

8644.04
7099.14

0.95

1.00

4370.50
3191.62

4181.32

4307.84

4607.49

0.00
2008-09
Current liabilities

2009-10

2010-11

Liquid ratio

Absolute / Cash Ratio

4.00
3.50
3.00
2.50
2.00

1.58
1.26

6624.17

1.50

5415.54

3191.62

4181.32

4307.84

0.43
1998.89
4607.49

1.00
0.50
0.00

2008-09
Current liabilities

2009-10

2010-11

ABSOLUTE LIQUID RATIO

14000.00
12000.00

Page 11

Current liabilities

ABSOLUTE LIQUID RATIO

Sheet1

12000.00
10000.00
8000.00

Interest Coverage Ratio

120.00
100.00

6000.00
4000.00
2000.00

80.00

67.06

0.00

60.00
40.00

2114.06
23.99
1325.20
88.14

19.76

9.95
1146.21
115.20

20.00
0.00

2008-09
Fixed interest

2009-10

2010-11

Interest Coverage Ratio

Proprieatery Ratio
800.00%
700.00%
600.00%
500.00%
400.00%
300.00%

25000
20000
15000
10000

200.00%
15276.51

7827.32
44.14%
17733.43

7827.31
42.26%
18523.21

7827.31
41.08%
19053.11

100.00%
0.00%

2008-09
Total assets

2009-10

2010-11

5000
543.31

Proprietary Ratio

Inventory Turn Over Ratio

7.00
5.62

3.67

3.46

1482.20

1622.14

2008-09
Avg inventory

10471.18

9809.15

9128.38

2833.40

2009-10

2853.12

2010-11

Inventory Turnover Ratio {times}

Page 12

6.00

14000.00

5.00

12000.00

4.00

10000.00

3.00

8000.00

2.00

6000.00

1.00

4000.00

0.00

2000.00
0.00

Avg inventory

Sheet1

Inventory Turnover Ratio {times}

Inventory Conversion Period

120

99

100
80
53
365.00

50
365.00

60

365.00

40
20
6.13

5.62

3.46

3.67

0
2008-09
Inventory turnover ratio

2009-10

12000.000
10000.000
8000.000
6000.000
4000.000
2000.000
0.000

2010-11

Inventory conversion period [ Days ]

Average Collection Period

10

7
6
365.00

58.59

365.00

64.13

52.67

2008-09
Debtors turnover ratio

365.00

12

12000.00

10

10000.00

8000.00

6000.00

4000.00

2000.00

0.00

37.89

2009-10

2010-11

Avg.collection period [ days ]

Gross Profit Ratio

35.00
30.00
23.17

25.00
20.00
13.52
10.95

9088.00

2007-08
b. net sales

2115.00 9128.00

1326.00 9809.00

1147.00 10471.18

2008-09

2009-10

2010-11

Gross profit Ratio A/B

Page 13

12000
10000
8000

15.00

6000

10.00

4000

5.00

2000

0.00

Sheet1
b. net sales

Gross profit Ratio A/B

Net Profit Ratio

25.00%

21.00%

20.00%

6.29%

15.00%

8000.00

10.00%

6000.00

5.00%
1335.57 9128.38

796.67 09809.15

658.49 10471.18

0.00%
2007-08

2008-09
B. net sales

12000.00
10000.00

14.63%

9088.37

14000.00

2009-10

4000.00
2000.00
0.00

2010-11

Net profit ratio(A/B)

Return on Equity Capital

50

2500.00

40

2000.00

30

1500.00

20

1000.00

10

500.00

39.73

27.31
16.29

1942.74
4890.00

13.47

1335.57 4890.00

796.67 4890.00

658.49 4890.00

2008-09

2009-10

2010-11

0
2007-08
B.equity share capital

Return on equity capital

Page 14

0.00

Sheet1

Categories
2008-09
4.44

2009-10
3.25

2010-11
3.64

2011-12
4.04

el Industries : Exports ( in million tonnes )

3.25

3.64

4.04

2009-10

2010-11

2011-12

otal Finished Steel ( Alloy + Non Alloy )

Page 15

Sheet1

Debt Equity Ratio

0.19

0.19
0.16

Page 16

Sheet1
0.13

0.08

543.318173.70

916.969538.20

440.7311481.04

1007.76
12419.91

1232.55
12885.00

2005-06

2006-07

2007-08

2008-09

2009-10

Outsiders funds

Shareholders funds

1136.76

2010-11

Debt equity ratio

Solvency Ratio
7.10%

6.65%
5.97%

5.68%
5.10%

2.80%

543.31 10511

916.9612835.8

440.7315276.51

1007.76
17733.43

1232.55
18522.96

1136.76
19053.11

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Total liabilities to outsiders

Total assets

Solvency ratio

Funded debt to total Capitalizaton

14000.00
9.60%

12000.00
10000.00

9.50%
8.00%

6.60%

8000.00
6000.00

3.80%

4000.00
2000.00

543.31 8173.70

916.96 9538.20

440.73 11481.04

1007.76 12419.91

2007-08

2008-09

1232.55 12885.00

1136.76

0.00
2005-06

2006-07

Page 17

2009-10

2010-11

2005-06

2007-08Sheet1

2006-07
Funded debt(A)

2008-09

Total Funds (B)

2009-10

2010-11

Total capitalization (A/B)

Debtor Turn over Ratio

12000.000

68.000

10000.000

64.000

59.000

53.000

8000.000

41.000

6000.000
4000.000

7305.710

10471.180

9809.150

9128.380

9088.370

7932.660

2000.000
107.480

191.540

155.100

142.340

186.230

0.000
2005-06

2006-07

2007-08

A. net sales

2008-09

b. average trade debtors

2009-10

2010-11

Debtor Turn over Ratio [ times ]

Working Capital Turnover Ratio

12000.00
10000.00
8000.00
1.87

6000.00
4000.00

1.1
7305.71

1.18
9128.38

9088.37
1.05

0.95
7932.66

9809.15

2000.00
6664.14

8343.80

8612.97

7678.00

5242.82

0.00
2005-06

2006-07

a.net sales

2007-08

b. net working capital

2008-09

2009-10

Working capital turnover ratio(a/b) [ Times ]

Operationg Profit Ratio

54.70%

12000
10000
36.60%

8000
6000

27.50%

29.50%

2011 7314

2339 7933

2005-06

2006-07

25.00%

4000
4988

2000

3325

9088

9128

2451 9809

0
2007-08

Operating profit

2008-09
Net Sales

Page 18

2009-10
Operating profit Ratio

Sheet1
Operating profit

Net Sales

Operating profit Ratio

Return on Shareholder Investement

14000.00
12000.00

16.92%
15.32%

14.29%

10000.00

10.75%

8000.00
6000.00

6.18%

4000.00
2000.00

1252.378173.70

1363.439538.20

1942.74
11481.04

1335.57
12419.91

796.1012885.00

2005-06

2006-07

2007-08

2008-09

2009-10

0.00
A.net profit

B.share holders funds

Return on investment(A/B)

Earning Per Share

2500.00
397.30

2000.00
1500.00

256.12

278.83
223.93

1000.00
500.00

1942.74

113.89

1363.43

1252.37

1095.00

4.89

4.89

4.89

4.89

556.89 4.89

2005-06

2006-07

2007-08

2008-09

2009-10

0.00
Earning available to equity shareholders

No. of equity shares (in crs)

Page 19

Earning per share

Sheet1

Page 20

Sheet1

0.20
0.15

Page 21

Sheet1
0.15
0.09

0.10
0.05

1136.76
13229.22

0.00
2010-11

8.00%
5.97%

7.00%
6.00%
5.00%
4.00%
3.00%
2.00%

1136.76
19053.11

1.00%
0.00%

2010-11

12.00%
8.59%

10.00%
8.00%
6.00%
4.00%
2.00%

1136.76
13229.22

0.00%
2010-11

Page 22

Sheet1

2010-11

38.000
10471.180

276.380

80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0.000

2010-11

r Ratio [ times ]

3.47

10471.18

3017.72

4
3.5
3
2.5
2
1.5
1
0.5
0

2010-11

ver ratio(a/b) [ Times ]

60.00%
50.00%
40.00%
26.51%

30.00%
20.00%

2776

10.00%
10471

0.00%
2010-11

Page 23

Sheet1

20.00%
15.00%
10.00%
4.98%

5.00%
658.4913229.00

0.00%
2010-11

vestment(A/B)

500.00
400.00
300.00
200.00
85.89

100.00

420.00 4.89

0.00
2010-11
Earning per share

Page 24

Sheet2
Particulars
Liquid assets
Current liabilities

2005-06
7035.55
1587.86

2006-07
9244.86
2104.3

2007-08
10043.44
3191.62

2008-09
8644.04
4181.32

2009-10
7099.14
4307.84

2010-11
4370.5
4607.49

12000
10000
8000

Liquid assets

6000

Current liabilities

4000
2000
0
2005-06

2006-07

2007-08

2008-09

Page 25

2009-10

2010-11

Sheet2

Liquid assets
Current liabilities

Page 26

Sheet3
96 Steel

www.vizagsteel.com
Rashtriya Ispat Nigam Ltd. (RINL)/ Visakhapatnam Steel
Plant (VSP) was incorporated on 18.2.1982 under the Companies
Act, 1956. RINL/VSP is a schedule- A Navratna company
in Steel sector, under the administrative control of Ministry of
Steel with 100% shareholding by the Government of India. Its
Registered and Corporate office is at Visakhapatnam, Andhra
Pradesh.

Vision/Mission
The Vision of the Company is to be a continuously
growing world class company Its endeavor is to harness its
growth potential and sustain profitable growth; deliver high
quality and cost competitive products and be the first choice
of customers; create an inspiring work environment to unleash
the creative energy of people; achieve excellence in enterprise
management; be a respected corporate citizen; ensure clean and
green environment and to develop vibrant communities.
The Mission of the Company is to attain 16 Mt liquid
steel capacity through technological up-gradation, operational
efficiency and expansion; augmentation of assured supply of raw
materials; to produce steel at international Standards of Cost &
Quality; and to meet the aspirations of stakeholders.

Industrial / Business Operations

RINL/VSP is involved in production and marketing of steel
products in the long product category and basic grade pig iron
through its operating unit at Visakhapatnam, Andhra Pradesh.
The principal products of VSP include Pig Iron, rounds,
structurals, reinforcement bars, wire rods, blooms, billets and
squares. The iron & steel products, which account for 98%
of total sales, are used in construction, wire drawing industry,
forging industry, and foundry and re rolling industry. The
physical performance of the company for last three years are
given below:
Main Product Unit Performance During
(% capacity utilisation)
2010-11 2009-10 2008-09
Bar Products Mt 0.868
(122%)
0.87
(123%)
0.825
(116%)
Wire rods Mt 1.016
(120%)
1.016
(120%)
0.972
(114%)
MMSM Products Mt 1.044

Page 27

Sheet3
(123%)
1.073
(126%)
0.748
(88%)
Pig Iron Mt 0.318
(57%)
0.408
(73%)
0.322
(58%)

BIRD Group of Companies (BGC) have formally been

made subsidiaries of RINL, with acquisition of 51% stake in
EIL, the holding company of BGC.

Strategic Issues
RINL has long term directional plans to expand the capacity
of liquid steel to 20 million tonnes in phases by the year 2020 to
maintain its important position in the Indian steel market. RINL is
currently doubling its capacity to 6.3 Mtpa of liquid steel which
is scheduled to be completed by 2011-12 progressively.
In addition to expansion, RINL is also in the process of
adding capacities through revamping / up gradation of existing
units like Blast Furnaces, Converters, Sinter Plant and other
associated facilities with which capacity will go up to 7.3 mtpa
of Liquid steel by 2013. RINL has taken number of initiatives for
growth of business of the company in addition to its expansion
plan, which includes formation of Joint Ventures, acquisition of
mineral assets for raw material security, mergers etc.

5.4 Rashtriya Ispat Nigam Ltd.

MOU signed for installation of Uttarbanga RINL Rail
Kharkhana to produce Axels for Railways at New Jalpaiguri,
West Bengal.

Performance Highlights
The operational performance of the company along with
performance indicators and selected financial ratios during the
period 2008-09 to 2010-11 can be seen on the opposite page.
The Company registered an increase of ` 1377.73 crore in
total income during 2010-11 which went up to ` 11529.06 crore
in 2010-11 from ` 10151.33crore during 2009-10. The net profit
of the company however reduced to ` 658.49 crore, a reduction
of ` 138.18 crore over the previous years profit of ` 796.67
crore due to increase in Raw Material Consumption Expenditure
as a result of increase in raw material prices over last year.
The year 2010-11 witnessed considerable growth of Indian
economy and steel industry has also shown growth rates of 8.9%
and 10.6% with respect to production and apparent consumption
of finished steel respectively.
RINL has been surpassing rated capacities of its production
units since 2001 and continued the same trend for the year 201011. RINL/VSP registered capacity utilization of 113%, 114% &

Page 28

Sheet3
116% in Hot Metal, Liquid Steel and Saleable Steel productions
respectively. 24.23 lakh tons of value added steel products were
produced during 2010-11which is about 79% of saleable steel,
is the best since inception.

Human Resource Management

The company employed 17829 regular employees as on
31.3.2011. The retirement age in the company is 60 years.
It is following IDA 2007 pattern of remuneration. Details of
employment in last 3 years are given below:
Particulars 2010-11 2009-10 2008-09
Executives including NonUnionised Supervisors 5207 5263 5184
Non-Executives # 12622 12567 11988
Total Employees 17829 17830 17172
# Detail break-up of Non-Executive employees is at Statement
no. 25 of volume-I of PE Survey.

Technology Up-gradation, Research &

Development
RINL-VSP through in-house R&D, has taken up various
projects towards in-plant process improvements, development of
new products, cost reduction, waste & environment management,
improvement in yield & efficiency etc. Projects are also taken
up in collaboration with different research institutes like Council
of Scientific & Industrial Research (CSIR), premier educational
institutions viz. IITs, IISc-Bangalore, Jadavpur University, Andhra
University etc.
Keeping in view the market demand and to cater to specific
customer requirement, 25 new products were developed during
2010-11. These new products are used in manufacturing products
/ applications.
Public Enterprises Survey 2010-2011: Vol-II 97

Rashtriya Ispat Nigam Ltd.

Vishkahapatnam Steel Plant, Administrative Building., Vishakhapatnam, Andhra Pradesh
Balance Sheet (` in Lakhs)
Particulars 2010-11 2009-10 2008-09
Authorised Capital 800000 800000 800000
(1) Sources Of Fund
(1.1) Shareholders Funds
(A) Paid-Up Capital
Central Govt 488985 782732 782732
Others 293747 0 0
(B) Share Application Money 0 0 0
(C) Reserves & Surplus 540190 505768 459259
Total (A) + (B) + (C) 1322922 1288500 1241991
(1.2) Loan Funds
(A) Secured Loans 27489 40728 90772
(B) Unsecured Loans 86187 82527 10004
Total (A) + (B) 113676 123255 100776
(1.3) Deferred Tax Liability 7997 9782 12449
Total (1.1) + (1.2) + (1.3) 1444595 1421537 1355216
(2) Application Of Funds

Page 29

Sheet3
(2.1) Fixed Assets
(A) Gross Block 979463 947395 900604
(B) Less Depreciation 826471 800855 774974
(C) Net Block (A-B) 152992 146540 125630
(D) Capital Work In Progress 953671 750690 461781
Total (C) + (D) 1106663 897230 587411
(2.2) Investment 36160 25 5
(2.3) Current Assets, Loan &
Advances
(A) Inventories 325471 245152 321528
(B) Sundry Debtors 33061 18118 19127
(C) Cash & Bank Balances 199889 541554 662417
(D) Other Current Assets 7596 13740 25891
(E) Loan & Advances 196504 136502 156969
Total ( A )+ ( B )+ ( C )+ ( D )+ ( E ) 762521 955066 1185932
(2.4) Less:current Liabilities &
Provisions
(A) Current Liabilities 327143 287195 256079
(B) Provisions 133606 143589 162053
Total (A+B) 460749 430784 418132
(2.5) Net Current Assets (2.3-2.4) 301772 524282 767800
(2.6) Deferred Revenue / Pre.
Expenditure 0 0 0
(2.7) Deferred Tax Asset 0 0 0
(2.8) Profit & Loss Account(Dr) 0 0 0
Total (2.1+2.2+2.5+2.6+2.7+2.8) 1444595 1421537 1355216
Important Indicators 2010-11 2009-10 2008-09
(i) Investment 782732 788524 782732
(ii) Capital Employed 454764 670822 893430
(iii) Net Worth 1322922 1288500 1241991
(iv) Cost of Production 1058236 891092 899936
(v) Cost of Sales 1005004 932627 808271
(vi) Gross Value Added
(At Market Price) - - (vii) Total Employees (Other Than
Casuals) (Nos.) 17829 17830 17172
(viii) Avg. Monthly Emoluments Per
Employee (Rs.) 59498 65421 56132
Profit & Loss Account (` in Lakhs)
Particulars 2010-11 2009-10 2008-09
(1) Income
(A) Sales/Operating Income 1151699 1063463 1041063
(B) Excise Duty 104581 82548 128225
(C) Net Sales (A-B) 1047118 980915 912838
(D) Other Income/Receipts 52556 75753 97633
(E) Accretion/Depletion in Stocks 53232 -41535 91665
(I)Total Income (C+D+E) 1152906 1015133 1102136
(2) Expenditure
(A) Purchase of Finished Goods/
Consumption Of Raw Materials 713926 553511 589625
(B) Stores & Spares 47122 46648 50123

Page 30

Sheet3
(C) Power & Fuel 42503 40827 34031
(D) Manufacturing / Direct / Operating
Expenses 14581 48582 57333
(E) Salary, Wages & Benefits /
Employee Exp. 127295 139974 115668
(F) Other Expenses 68776 25159 19268
(G) Provisions 984 919 1008
(II)Total Expenditure (A to G) 1015187 855620 867056
(3) Profit Before Dep, Int, Taxes &
EP (PBDITEP) (I-II) 137719 159513 235080
(4) Depreciation 26594 27717 24046
(5) Dre/Prel Exp Written Off 0 0 20
(6) Profit Before Int., Taxes & Ep
(Pbitep ) (3-4-5) 111125 131796 211014
(7) Interest
(A) On Central Government Loans 0 0 0
(B) On Foreign Loans 0 0 0
(C) Others 16455 7755 8814
(D) Less Interest Capitalised 0 0 0
(E) Charged to P & L Account
(A+B+C-D) 16455 7755 8814
(8) Profit Before Tax & EP(PBTEP)
(6-7E) 94670 124041 202200
(9) Tax Provisions 32317 45098 69102
(10) Net Profit / Loss Before EP (8-9) 62353 78943 133098
(11) Net Extra-Ord. Items -3496 -724 -459
(12) Net Profit / Loss(-) (10-11) 65849 79667 133557
(13) Dividend Declared 27147 28529 33918
(14) Dividend Tax 4404 4738 5764
(15) Retained Profit (12-13-14) 34298 46400 93875
Financial Ratios 2010-11 2009-10 2008-09
(i) Sales : Capital Employed 230.26 146.23 102.17
(ii) Cost of Sales : Sales 95.98 95.08 88.54
(iii) Salary / Wages : Sales 12.16 14.27 12.67
(iv) Net Profit : Net Worth 4.98 6.18 10.75
(v) Debt : Equity 0.09 0.1 0.08
(vi) Current Ratio 1.65 2.22 2.84
(vii) Sundry Debtors : Sales
(No. of Days) 11.52 6.74 7.65
(viii) Total Inventory : Sales 113.45 91.22 128.56

Page 31

Sheet3_2

Definition of 'Current Ratio'

The ratio is mainly used to give an idea of the company's ability to pay back its
short-term liabilities (debt and payables) with its short-term assets (cash, inventory,
receivables). The higher the current ratio, the more capable the company is of
paying its obligations. A ratio under 1 suggests that the company would be unable
to pay off its obligations if they came due at that point. While this shows the
company is not in good financial health, it does not necessarily mean that it will go
bankrupt - as there are many ways to access financing - but it is definitely not a
The current ratio can give a sense of the efficiency of a company's operating cycle
or its ability to turn its product into cash. Companies that have trouble getting paid
on their receivables or have long inventory turnover can run into liquidity problems
because they are unable to alleviate their obligations. Because business
operations differ in each industry, it is always more useful to compare companies
This ratio is similar to the acid-test ratio except that the acid-test ratio does not
include inventory and prepaids as assets that can be liquidated. The components
of current ratio (current assets and current liabilities) can be used to derive working
capital (difference between current assets and current liabilities). Working capital is
frequently used to derive the working capital ratio, which is working capital as a

Definition of 'Quick Ratio'

An indicator of a company's short-term liquidity. The quick ratio measures a
company's ability to meet its short-term obligations with its most liquid assets. The
higher the quick ratio, the better the position of the company.
The quick ratio is more conservative than the current ratio, a more well-known
liquidity measure, because it excludes inventory from current assets. Inventory is
excluded because some companies have difficulty turning their inventory into cash.
In the event that short-term obligations need to be paid off immediately, there are
situations in which the current ratio would overestimate a company's short-term
financial strength.

Definition of Cash Ratio'

The cash ratio is an indicator of a company's liquidity that further refines both the
current ratio and the quick ratio by measuring the amount of cash, cash
equivalents or invested funds there are in current assets to cover current liabilities.

Page 32

Sheet3_2
The cash ratio is the most stringent and conservative of the three short-term
liquidity ratios (current, quick and cash). It only looks at the most liquid short-term
assets of the company, which are those that can be most easily used to pay off
current obligations. It also ignores inventory and receivables, as there are no
assurances that these two accounts can be converted to cash in a timely matter to
Very few companies will have enough cash and cash equivalents to fully cover
current liabilities, which isn't necessarily a bad thing, so don't focus on this ratio
The cash ratio is seldom used in financial reporting or by analysts in the
fundamental analysis of a company. It is not realistic for a company to purposefully
maintain high levels of cash assets to cover current liabilities. The reason being
that it's often seen as poor asset utilization for a company to hold large amounts of
cash on its balance sheet, as this money could be returned to shareholders or
used elsewhere to generate higher returns. While providing an interesting liquidity

Page 33

Sheet3_2

lity to pay back its

ssets (cash, inventory,
he company is of
pany would be unable
this shows the
ily mean that it will go
it is definitely not a

pany's operating cycle

e trouble getting paid
nto liquidity problems
se business
compare companies

est ratio does not

ed. The components
used to derive working
es). Working capital is
orking capital as a

tio measures a
ost liquid assets. The

more well-known
assets. Inventory is
eir inventory into cash.
mmediately, there are
mpany's short-term

ther refines both the

cash, cash
over current liabilities.

Page 34

Sheet3_2

hree short-term
most liquid short-term
sily used to pay off
as there are no
h in a timely matter to

ents to fully cover

focus on this ratio

alysts in the
mpany to purposefully
. The reason being
hold large amounts of
o shareholders or
an interesting liquidity

Page 35