BSL 1
BSL 1
BSL 1
PLANT
By
Priya Raj Mishra
MBA (2022-24)
1.Acknowledgement
I would like to express my heartfelt gratitude to Bokaro Steel Plant for providing me with the
opportunity to undertake my finance internship with their esteemed organization. This internship
has been an invaluable experience for my professional development, allowing me to apply
theoretical knowledge in a real-world setting and gain insights into the dynamic field of finance.
I extend my sincere thanks to Mr. Animesh , Manager (F&A) for their guidance, support, and
mentorship throughout the internship period. Their expertise and willingness to share their
insights have greatly contributed to my learning journey. I am also grateful to the entire finance
team at Bokaro Steel Plant for their warm welcome, cooperation, and willingness to involve me
in various financial projects and tasks. Their patience and encouragement have made this
internship truly enriching.
Furthermore, I would like to acknowledge the contributions of my fellow colleagues who have
shared their experiences and insights, enhancing my understanding of the finance operations at
Bokaro Steel Plant.
Lastly, I want to express my appreciation to my academic institution and faculty for their
continuous support and encouragement, which enabled me to secure this internship opportunity.
I am confident that the skills and knowledge I have gained during this internship will serve as a
strong foundation for my future career in finance. Thank you once again, Bokaro Steel Plant, for
this invaluable experience.\
Sincerely,
2.DECLARATION
I Priya Raj Mishra a student of Graphic Era Hill University, Dehradun hereby declare that the
project titled "Analysis of Working Capital Management" has been prepared by me under the
guidance and supervision of Mr. Animesh, Manager (A&F) at Bokaro Steel Plant.
The project work, conducted from 08.08.2023 to 02.09.2023, is a bona fide piece of research and
analysis carried out by me. The research methodologies, data analysis, and conclusions presented
in this project are based on my own efforts and understanding of the subject matter.
I affirm that the sources of information and data used in this project have been duly
acknowledged and referenced. Any external material, ideas, or contributions from other
individuals have been appropriately cited and credited in accordance with academic and ethical
standards.
Furthermore, I declare that this project has not been submitted in part or full, for the award of
any other degree, diploma, or certification. The findings, interpretations, and recommendations
presented in this project are solely my own and do not represent the official views of Bokaro
Steel Plant.
I express my gratitude to Mr. Animesh for their constant guidance, valuable insights, and support
throughout the project. The opportunity to work on this project at Bokaro Steel Plant has
provided me with practical exposure and a deeper understanding of finance in an industrial
setting.
I also extend my appreciation to the finance team at Bokaro Steel Plant for their cooperation,
assistance, and inputs that have contributed to the successful completion of this project.
I hereby submit this project for evaluation and assessment. I understand that any
misrepresentation, plagiarism, or misconduct in this project will result in appropriate action as
per the regulations of Graphic Era Hill University and Bokaro Steel Plant.
Date: 02.09.2023
Place: Bokaro
Sincerely,
CONTENTS
1. Acknowledgement
2. Declaration
3.Objective of the study
4. SAIL- An overview
5. Company profile
6.Major units of Bokaro Steel Plant
7.Revenue and Profit of Bokaro Steel Plant
8.SWOT Analysis
9.Competitor of Bokaro Steel Plant
10.Role of Finance and account
11.Section in Finance and account
12.Research Methodology
13.Working capital management
5. Research methodology
8. Introduction
9. Graphical analysis
10. Ratio Analysis
11. Findings
12. Conclusion
13. Recommendation
14. Bibliography
15. List of abbreviations
16. Annexture
4.SAIL-An Overview
Steel Authority of India Limited (SAIL) is one of the largest and most
prominent public sector companies in India's steel sector. Established in
1973, SAIL is a government-owned enterprise that operates under the
administrative control of the Ministry of Steel, Government of India.
The company is headquartered in New Delhi, India.
SAIL is primarily engaged in the business of manufacturing and selling
a wide range of steel products. It covers the entire steel value chain,
including the sourcing of raw materials, processing, manufacturing, and
distribution of finished steel products.
SAIL operates several integrated steel plants across various regions in
India. These plants are equipped with state-of-the-art facilities for iron
ore mining, coking coal production, iron and steel making, and
downstream processing. The integrated nature of its operations gives
SAIL control over the entire production process, ensuring efficiency and
quality.
The company produces an extensive range of steel products, including
flat products like hot-rolled coils, cold-rolled coils, and plates, as well as
long products like rails, structural steel, and wire rods. This diverse
product portfolio caters to a wide array of industries, from construction
and infrastructure to automotive and manufacturing.
SAIL's products play a crucial role in nation-building and infrastructure
development. They are used in the construction of bridges, roads,
buildings, railway tracks, and various other critical infrastructure
projects
SAIL is known for its emphasis on research and development (R&D) to
stay competitive in the global steel market. The company's R&D efforts
focus on improving operational efficiency, developing new steel grades,
reducing environmental impact, and adopting advanced manufacturing
techniques.
While primarily serving the domestic market, SAIL also exports a
portion of its steel products to international markets. This global
presence contributes to India's standing in the global steel industry.
The steel products manufactured by SAIL include:
• Hot and cold rolled sheets and coils
• Galvanized sheets
• Electrical sheets
• Railway products
• Plates, bars and rods
• Stainless steel and other alloy steels
Integrated Steel Plants
• Bhilai Steel plant (BSP) in Chhattisgarh
• Durgapur Steel Plant (DSP) in West Bengal
• Rourkela Steel Plant (RSL) in Orissa
• IISCO Steel Plant (ISP) in West Bengal
• Bokaro Steel limited (BSL) in Jharkhand
Integrated Operations: Bokaro Steel Plant is an integrated steel plant with facilities for
raw material processing, iron-making, steel-making, and downstream processing. This
integration can lead to cost efficiencies and better quality control.
Scale and Capacity: As one of India's largest steel plants, Bokaro Steel Plant benefits
from economies of scale, enabling it to produce significant quantities of steel and
compete effectively in the market.
Technological Expertise: The plant likely employs advanced technologies in steel
production, which can improve productivity, product quality, and environmental
sustainability.
Skilled Workforce: Bokaro Steel Plant is likely to have a skilled and experienced
workforce, contributing to efficient operations and maintaining quality standards.
Strategic Location: Its location in Jharkhand provides proximity to key raw material
sources and markets, reducing transportation costs.
Weaknesses:
Opportunities:
Threats:
Competition: The steel industry is highly competitive, both domestically and globally,
which can lead to price pressures and reduced margins.
Trade Dynamics: Changes in trade policies, tariffs, or import/export regulations can
impact the cost of raw materials and finished products.
Substitute Materials: Emerging substitute materials for steel in various applications
could impact demand for traditional steel products.
Economic Fluctuations: Economic downturns can lead to decreased demand for steel,
affecting production levels and revenues.
Regulatory Changes: Stricter environmental regulations could necessitate costly
upgrades and impact operations.
12.RESEARCH METHODOLOGY
The research began with the study of finance and accounts department in
BSL, their major sections and their respective activities. It was then
followed by the study of various production plants to understand the
production flow in the steel plant. The study of various production plants
gave the idea of the inventory levels maintained in these plants. The
study was directed towards the analysis of working capital management
in BSL which included the analysis of the various components of
working capital, the percentage of various components maintained in
BSL, determination of operating cycle and the cash conversion cycle,
the company’s policy towards its various suppliers and customers. The
study further included ratio analysis to determine the liquidity and
profitability of the firm.
The data was collected from the following sources:-
Primary sources:
• Records of previous years profit and loss statements, balance sheets
and cash flow statements
• Information provided by the senior finance executives and chartered
accountants of BSL
Secondary sources:
• Secondary data was collected from the internet and various magazines,
circulars issued by SAIL and books.
Thus:
Working capital = current assets – current liabilities
Efficient working capital management can reduce the need for short-
term borrowing, resulting in lower interest expenses and improved
profitability.
1. Conservative Approach:
Advantages:
Enhanced liquidity: High levels of working capital ensure that the
company can easily cover short-term obligations.
Reduced risk: The company is better prepared to handle
unexpected expenses and economic downturns.
Strong supplier relationships: Prompt payments to suppliers can
lead to favorable terms and discounts.
Disadvantages:
2. Aggressive Approach:
Advantages: