Financial performance of select steel units

Abstract

Financial analysts often assess firm's performance, in terms of productivity, profitability, liquidity and working capital. The objective of this paper was to examine the financial performance of selected steel units and to provide suitable suggestions, to strengthen the financial performance of the steel units. The four companies selected for this study were Rashtriya Ispat Nigam Ltd, Steel Authority of India Ltd, Tata Steel Ltd and JSW Steel Ltd. The data were collected from 2005–06 to 2013–14. The technique of One Way ANOVA, was applied to test the hypotheses. The study found that there was no significant difference between the various ratios of profitability, financial structure, working capital and activity between the selected units. The selected units should maintain adequate amount of working capital and strengthen the financial efficiency. Cost accounting and cost audit should be made mandatory for these units, to create the responsibility centre and adopt proper techniques for planning and control of cash.