equity research

Embed Size (px)

DESCRIPTION

 

Text of equity research

  • 1. Project ReportOnStudy of Financial System of MIEL

2. A PROJECT REPORT ON Working capital & Ratio analysis AT Monnet Ispat & Energy LimitedSubmitted by Sonu Samdariya Id: 09PR00101B061 INTERNAL GUIDEEXTERNAL GUIDE Mr. Manmeet Arora Mr. Kamal Tanna (Sr. Manager )IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION PROTON b school, Indore2009 - 2011 3. This is to certify that the internship project titled Working Capital & Ratio Analysis issuccessfully completed by Mr. Sonu Samdariya under my supervision in partial fulfillment & forthe award of MBA for the period from 3rd May 2010 to 30th June 2010. This report neither full nor inpart has ever been submitted for awarding of any degree of either this university or any otherUniversity. I am pleased to say that his performance during this period was very good.Internal GuideMr. Manmeet Singh Arora(Faculty Guide) 4. DECLARATIONI hereby declare that this project work entitled Working Capital & Ratio Analysis is my sincerework, carried out under the guidance of faculty guide Mr. Manmeet Singh Arora . This neither fullnor in part has ever been submitted for award at any other University.Name : Sonu SamdariyaPlace : RaipurDate : 5. ACKNOWLEDGEMENTIt is my pleasure to acknowledge gratefully all those honorable personalities who have helped meinto the creation of this project and shared their experience about management and the market.I express my deep regards and solemn gratitude to Mr. Kamal Tanna (Senior Manager FinanceDepartment) and my project guide Mr. Anand Pal for giving me the opportunity and their valuableguidance to make this project successful.I wish to express my indebtedness and sincere thanks to Dr. Vinay Goyal (Dean of PROTONbusiness School) for giving me opportunity to work in the organization.I would also like to express my sincere gratitude and special thanks to Mr. Mnameet Singh Arora(Faculty of Financial Management), and all the faculty members for being supportive to me.Special thanks are due to all the respondents who gave me their time and attention despite theirbusy schedule.Finally, I wish to extend my sincere acknowledgement to my parents for their moral and financialsupport.With regardsSonu Samdariya 6. Table of Contents 7. Executive SummaryThe project is about Working Capital Management in Monnet Ispat & Energy Ltd at RaipurChhattisgarh,Project is an opportunity given to management student where one gets an insight in to thepractical aspects in the day to day working of an organization. It imparts a real time environment tothe theoretical knowledge that one acquire in a business school. The project was undertaken tomake a study on the various aspect of the Working Capital Management.The Project highlights the main aims and objects of the project report. It also explains thegreat importance of Working Capital Management. It covers specific introduction of WorkingCapital Management. It gives theoretical aspects as well as covers all dimensions of the topic.Research methodology adopted for getting data is empirical in nature and therefore releasein the companys annual report and financial statements. 8. Objective of Study To present an introductory profile of Monnet Ispat Energy Ltd. To study in depth the finance management of Monnet Ispat & Energy. Ltd To study the financial position of the concern through Working Capital Management. To estimate the working capital requirement of the company and the composition of the net current assets for the period under review. To analyze and interpret the working of the company through the use of tools such as Working Capital Management. To know the liquidity position of the company for the period under consideration. To know the efficiency of the concern. To study the level of current assets and current liabilities for the company. To study the nature of expense in company and estimate the future expense base on past data. To understand how the expense are control by the use of Working Capital Management. To understand how Working Capital Management helps the company. To draw a conclusion regarding Finance Management of Monnet Ispat & Energy Ltd. 9. Scope of the StudyWorking Capital Management is widely used in all the organization. The scope of this studyis limited to the study of different types of ratios and fund control of Monnet Ispat & Energy Ltd.The study includes the computation and comparison of various ratios and the estimation of workingcapital requirements for the period under review.The study was conducted at Monnet Ispat & Energy Ltd Raipur. The duration of the studywas confined to about 60 days. This study is limited to Monnet Ispat & Energy. Ltd. This study is specially related with Finance management in particular. This study is presented on the basis of information and knowledge which could begained during the course of SIP at Monnet Ispat & Energy Ltd. This study does not involve any survey or interaction with other company The data collected is related to Monnet Ispat & Energy Ltd and not the industry as awhole. The data collected is purely from company records and discussion with the topmanagement only. This study is limited to time and does not consider the long run effect on the financialposition of the firm. 10. Research and Methodology There are two methods of data collection Primary Data CollectionSecondary Data CollectionCollection of Primary Data The primary data are those which are collected and for the first time and thus happened tobe original in character. For this project primary data is collected by discussion with authorities. Collection of Secondary Data The secondary data on the other hand are those which have already been collected bysomeone else and which already have been passed through statistical process. The secondarydata is collected from annual reports, magazines, office files and records etc. 11. Introduction to the Study The project is done on Working Capital Management of Monnet Ispat & Energy Limited.This project was undertaken with an aim to gather information and get knowledge about theWorking Capital Management and related Financial Ratio of the company. A ratio is themathematical relationship between two quantities in the form of fraction or percentage. Ratioanalysis is essentially concerned with the calculation of relationship which after properidentification and interpretation may provide information about the operations and state of affairs ofbusiness enterprises. The analysis is used to provide indicators of past performance in terms of critical successfactors of a business. This assistance in decision-making reduces reliance on guesswork andintuition and establishes a basis for sound judgment. The ratio analysis concentrates on the inter-relationship among the figure appearing in theaforementioned for financial statements. Working Capital Ratio Analysis allow interested partieslike shareholders, investors, creditors, Government and analyst to make an evaluation of certainaspect of a firms performance. The appraisal of the Working Capital will make proper analysisabout the strengths and weaknesses of the firm operations.Working Capital Analysis is an accounting tool that reflects the followings: The ability of the firm to meet its short-term commitments. The debt financing of the company. The degree of the efficiency and the standard of performance of the company. Ratio provides an easy way to compare present performance with past. Ratio depicts the areas in which a particular business is competitively advantaged or disadvantaged through the comparison ratio to those of other business. The overall efficiency of the company. 12. Monnet Vision To achieve holistic in terms of cost, quality and customer satisfaction in a systematic and planned manner. A symbol of corporate excellence with strong focus for benefiting stakeholders and society at large. 13. Monnet Mission To achieve total integration in operations with global cost and quality Standards with the use of latest technology and to be perceived as the Preferred choice of our customers. To build a team of motivated and dedicated work force with highWork Ethos. To strive to emerge as an ideal corporate citizen. 14. IntroductionMonnet Ispat & Energy Ltd is the flagship company of Monnet Group. It was incorporatedOn 1st February 1990; Mr. Sandeep Jajodia and Jindal Strips Ltd jointly promoted thecompany. It is located at Mandir Hasaud, Dist.Raipur. The first trial production Of the plantcame on 07/02/94 and the first commercial production of the plant came On 05/08/94. ISO9001 certifies the MIEL.Monnet is an industrial conglomerate born out of a conviction. It is this strength of conviction thatmakes us the second largest coal-based Sponge Iron manufacturer with thriving facilities in Raipurand Raigarh in the State of Chhattisgarh as well as the largest underground coal mineoperators in the country.Today, Monnet has a combined capacity of 860,000 TPA of Sponge Iron, 300,000 TPA of Steel,60,000 TPA of Ferro Alloys and Power generation facility of 150MW besides running the largestunderground coal mine in the country. Pursuing balanced integration, we have acquired additionalcoal mining rights at Raigarh. Our profitability is a result of judicious use of indigenous technology,backward & forward integration and economies of scale.Company descriptionMIEL is the second largest sponge iron based steel manufacturer in India, next only to JSPL. Thebusiness operations are backed by captive linkages of coal, power and to some extent, iron ore.MIEL is expanding its capacity across its product range and the same is expected to be completedby Q4FY09CorporateMonnet Ispat & Energy Ltd (MIEL) is the flagship company of the well diversified Monnet Group.The Group currently manages manufacturing units for Sponge Iron, Steel Melting & Rolling Mill,Ferro- Alloys Plant, Power Generation