CHAPTER 1
INTRODUCTION
Financial analysis (also referred to as accounting analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project.
It is performed by professionals who prepare reports using ratios that make use of information taken from Profitability statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may:
 Continue or discontinue its main operation or part of its business;
 Make or purchase certain materials in the manufacture of its product;
 Acquire or rent/lease certain machineries and equipment in the production of its goods;
 Issue stocks or negotiate for a bank loan to increase its working capital;
 Make decisions regarding investing or lending capital;
 Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.

INDUSTRY PROFILE
Iron & Steel sector in India is on growing because of the tough international and national demand. India's swift economic growth and towering demand by sectors like construction, infrastructure, and auto sector, at domestic and globally, has placed Indian steel industry on the international map. According to the recent report by International Iron and Steel Institute (IISI), our country is in the seventh place as one of the major steel producer in the world.

The beginning of the new steel era in India can be traced back to 1953 when a treaty for the construction of an integrated steelworks in Rourkela, Orissa was signed between the Indian government and the German companies Fried Krupp und Demag AG. Initially a plan with an annual capacity of 500,000 tonnes has been drawn, but this has