PROJECT REPORT ON INDUSTARYSubmitted to Punjab Technical University in partial fulfillment of the Requirement for the awardOFBACHELOR OF BUSINESS ADMINISTRATIONUnder Guidance of :Miss. Preeti SharmaLecturerSubmitted by:MOHIT SAINIUniv. Roll. No. 81005320107BBA- Vth SEMESTER

Chandigarh Business SchoolLandran, Mohali2008-2011 Certificate of Supervisor

This is to certify that MOHIT SAINI Roll No. 81005320107 has completed the Research Project Titled RATIO ANALYSIS OF INDUSTARY under my supervision in partial fulfillment of the BACHELOR OF BUSINESS ADMINISTRATION degree Approved by AICTE of Punjab Technical University Supervisors signatureMiss.Preeti SharmaLecturter, CBSDate:Place: Landran, Mohali

Forwarded for evaluation by the Dean: (Deans Signature) Seal of the Dean

DECLARATIONI, hereby declare that the research project report titled RATIO ANALYSIS OF INDUSTARY is my own original research work and this report has not been submitted to any University/Institute for the award of any professional degree or diploma MOHIT SAINI BBA , 5th SEMESTER CHANDIGARH BUSINESS SCHOOLDate: Place: Landran, Mohali

ACKNOWLEDGEMENT

A Project report is never the sole product of the person whose name appears on the cover. There are always some people whose guidance proves to be of immense help in giving it final shape. So, it becomes my first duty to express my gratitude towards all of them.

I am thankful to Mr. Sunil Kumar DGM-(HR Learning and Development) BHUSHAN POWER & STEEL, for giving me kind permission to carry out summer training in his organization. I also pay my regards to, Mr. Sunil Gupta for their guidance, efforts and timely help. It is because of their sincere cooperation that I am able to complete this project which is of paramount importance for the organization, its departments and employees in particular. MOHIT SAINI

CONTENTS

ACKNOWLEDGEMENT DECLARATION INTRODUCTION VISION THE GROUP HISTORY OPERATIONS BOARD OF DIRECTORS CODE OF CONDUCT CORPORATE SOCIAL RESPONSIBILITY INTRODUCTION TO THE TOPIC FINDINGS CONCLUSIONS

BHUSHAN POWER AND STEELINTRODUCTION

Bhushan Power & Steel Limited (BPSL), is a fully integrated 3.5 Million TPA Steel Making Company having turnover of INR 11,288 Crores (USD 1,858 Million) FY14.The Company is certified to ISO 9001:2008 & TS-16949 Quality Standards and ISO 14001:2004 Environment Management Standards.BPSL is a leading manufacturer of flat and long products and have state-ofthe-art plants at Chandigarh, Derabassi, Kolkata and Orissa in India. These plants manufacture value added products covering entire steel value chain right from Coal Mining to manufacturing Pig Iron, DRI, Billets, HR Coils, CR Coils, GP/GC Sheets, Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel, Carbon and Special Alloy Steel Wire Rods and Rounds conforming to IS and international standards.The Company have successfully commissioned a 3.5 Million TPA Greenfield Steel and Power Plant in Orissa with HR Coil making facility - First in Private Sector in the State of Orissa. For this plant, technology and equipments were sourced from leading world-renowned companies viz., Lurgi, ABB Ltd., SMS Siemag, SMS Meer Danieli, LOI Tenova, Kocks etc. BPSL has a wide marketing network in both India (comprising 35 sales offices) and abroad for selling its value added product range.The rock-solid foundation combined with continuous upgradation and innovation has enabled the Company to surpass its goals constantly. BPSL's end-to-end portfolio has enabled it to offer a wide spectrum of products at superior quality consistently surpassing customers' specifications. In addition to export thrust, BPSL cater to the domestic steel requirements of fast-growing sectors like automotive, white goods, construction / infrastructure, furniture, fasteners, telecommunication, power etc.With a view to make its presence in a big way in Special Alloy Steel Long Product business, BPSL has commissioned a most modern state of the art Wire Rod-cum-Bar Mill and is commissioning a host of down stream finishing facilities viz., Heat Treatment facilities, Bright Bar manufacture etc.Bhushan Steel is the largest manufacturer of auto-grade steel in India[1] and is spending Rs. 260 billion to expand its capacity to 12 million tonnes annually,[2][3]from the present installed capacity of around one million tonnes. The products manufactured are Cold rolled, galvanised, Bhushan Galume, colour coated tiles, drawn tubes, strips, wire rods, alloy billets, sponge ironThe products continue to be a favorite with all quality conscious users of Automobiles & White Goods/ Domestic appliances & General Engineering Industries. We take great pride in maintaing the highest standards of quality which our customers expect and it is no wonder that eminent corporate like Maruti Udyog, Honda Siel Telco Indica, Hindustan. Mo General Motor, Hyundai Motors, Ford Motors, Mahindra & Mahindra, Eicher Tractors, Ashok Leyland, LG Electronics, Whirlpool, Videocon, Daikin Shriram, National Matsushita, Samsung Electronics Godrej, Voltas, IFB, Fedders Lloyd, Carrier Refrigeration, Electrolux Group, Hitachi Airconditioners, KF Bearing, Cromptom Gr Philips India, BHEL, Aistom Limited, L&T, BPL, GE Motors, Jhonson Lift, Kone Elevator, Lucas TVS, NRB Bearing, Harsha Engineers Limited, Bundy India Limited, Tecumseh, LML, Scooters India Ltd., Bajaj Auto, Honda Motorcycle, Yamaha Motors, Bajaj Tempo continue their unbounded trust on us and in regularly sourcing our products. 1. Automobile Industry 2. Home Appliances

PROFILEAmongst the various reasons behind BSL's unprecedented growth and rapid integration on the steel value chain, perhaps, the most important would be its unwavering focus on acquiring the latest technology and know-how. The most important reason behind this focus has been BSL's commitment to provide its customers with the best quality products. The result, to say the least, has been awe-inspring growth.The Khopoli plant, commissioned in 2004 has been playing a remarkable role not only in the growth of exports, but in the production of a much wider variety of value added steel like Colour Coated Sheets, High Tensile Steel Strappings, Hardened and Tempered Strips and Precision Tubes. In addition to these, the Khopoli plant has recently launched the Galume value added steel (Aluminium & Zinc Coated Sheet) for the first time in the country.Operating with the most advanced technology, expressed through a large fleet of latest equipment, machinery and systems, the Khopoli plant has given a tremendous boost of 425000 MT per annum to BSL's total production capacity Including 240000 MT of galvanised steel, which are further forward integrated into Colour Coated Sheet, Galume and other value added products.

Giving a tremendous volume-thrust to the production capacity of BSL is its plant at Sahibabad, with a production of 475,000 MT per annum comprising products such as Automotive Grade C R Sheet and Galvanised Sheets.

As a strategic move to optimise the usage of resources and services, as well as to streamline the functioning of all systems and process within the organisation, BSL has recently implemented SAP (the global leader in Enterprise Resource Planning Systems). After all, with sales touching Rs. 3070 crores and installed capacity in the one million tonnes per annum range, BSL is now India's 3rd largest Secondary Steel Producer after SAIL and TISCO. BSL has the distinction of being the only producer In India of the widest width CR Sheet, besides being a preferred supplier of automotive grade steel sheets for inner and outer panels to all leading 4-wheeler and 2-wheeler manufacturers in the country.

The most brilliant milestone in BSL's journey of excellence is the setting up of a state-of-the-art Hot Rolling Steel & Power Plant in Orissa. This Integrated Steel and Power Plant will, no doubt, put BSL firmly on the fast track of progress.

Bhushan Steel Limited, is an ISO 9002,QS 9000 certified and a company of Rs. 2868 crores ($650 million approx.).

As one of the prime movers of the Technological Revolution in the Indian Cold Rolled Steel Industry, BSL has emerged as the countrys largest and the only CR steel plant with an independent line for manufacturing Cold Rolled coils and sheets up to a width of 1700 mm, as well as Galvanised Steel Coils & Sheets up to width of 1350mm.

The Company currently has capacity to produce ALMOST ONE MILLION MT/Annum of Cold Rolled Steel at Sahibabad and Khopoli Works .

The Company is a single-point source for a wide variety of products such as CRCA , Galvanized and Colour coated sheets, High tensile steel ttrapping, Hardened and tempered steel strips (HTSS) and Precision tubes.

HISTORYGrowing from strength to strength1970-Started with very small initial outlay for manufacturing Door Hinges & later on, Rail Track Fasteners.

1973-Manufacturing facilities set up for Tor Steel and Wire Rod in Chandigarh.

1981-Rolling Mill Project commissioned at Chandigarh for Round and Narrow Strips.

1985-Backward Integration Project for Steel Melting facilities.

1986-Upgrading of Mini Steel Plant with continuous casting and ladle furnace facilities.

1997-Commissioning of Narrow Width Cold Rolling Project at Chandigarh.

1998-Commissioning of Precision Pipe Project at Chandigarh.

2001-Commissioning of Cold Rolling & Galvanizing Complex at Kolkata.

2002-Addition of narrow width Cold Rolling facilities at Kolkata.

2003-Expansion of wide width Cold Rolling facilities, ERW Water Pipes & Tubes down stream facilities at Kolkata.

2004-Further expansion of Cold Rolling facilities at Kolkata.

2005-Commissioning of Orissa Project Phase-I consisting of 4 DRI Kilns, Steel Making Facilities, Coal Washery and 100 MW Power Plant.

2007-Commissioning of further expansion of Orissa Project Phase-II consisting of HR Coil Mill, Steel making, Blast Furnance, Sinter plant, Coke oven plant, Oxygen plant and Lime & Calcining Plant.

2009-Commissioning of 3.5 million tpa Coal Washery, 146 MW Power Plant and 0.3 million tpa Sponge Iron under Phase III of Orissa Project.

2010-Commissioning of 130 MW Power Plant and Electric Arc Furnace under Phase III of Orissa Project and further expansion of Orissa Project under Phase IV consisting of 6 DRI Kilns, 130 MW Power Plant, Steel Making Facilities,2nd CSP Caster & 6th strand along with Tunnel Furnace, Oxygen Plant, Lime Calcining with downstream facilities - Cold Rolling, Galvanizing, Galvalume, Colour Coating, Precision Tube & Black Pipe/GI Pipe.

2011-Commissioning of DRI Kilns, Electric Arc Furnace, 2nd CSP Caster & 6th Strand alongwith Tunnel Furnace, Cold Rolling Mill Complex and Galvanising under Phase-IV of Odisha Project.

2012-Commissioning of DRI Kilns, Power Plant, Oxygen Plant, Lime Calcining Plant, Galvalume, Color Coating, Precision Tube and Pipe Plant under Odisha Phase-IV Project, and implementation of further expansion of Odisha Project under Phase V, consisting of DRI Kilns, Iron Ore Benefication Plant, Pellet Plant, Cold Rolling, Pickling Line,Precision Tube Mill, Black Pipe Plant and Bright Bar finishing lines.

2013-Commissioning of Cold Rolling Mill, Pickling Line, Precision Tube Mill, Black Pipe Plant and Bright Bar Finishing Line Under Odisha Phase -V Project

2014-Phase-V Successfully Commissioned ahead of its schedule consisting of Iron Ore Beneficiation Plant, Pellet Plant, Pickling Line, Cold Rolling Mill, Precision Tube Mill, Black Pipe Plant and Bright bar Finishing Lines

VISION AND MISSIONOur Mission is to achieve clear identity and leadership globally in Steel production and distribution by integration of complete chain of production starting from captive iron ore to end user Steel products.Our revolution in Steel production has helped us to carve a niche unique only to a market leader. Every year passes by with new value additions and more accolades from our customers - Locally and Globally. Our rising chart in respect of all-important parameters of production and finance is a testimony to our claim.In pursuing ourmission, we at Bhushan Power & Steel Ltd. are guided by the followingvalues-Quality- To be the best in quality. We aim and achieve excellence.Technology- State of the art technology and product enrichment by continuous Research and Development.Customer Friendly- Our products are world class and more and more clients are appreciating and using our products. We also undertake customized products with values addition and enhancement.Corporate Governance- We comply with all applicable laws and regulations. We believe in maintaining clean environment and conservation of natural resources. We contribute towards betterment of our staff and provide them with best of facilities.Environment Protection and Practice- We are adopting and implementing pollution control measures as a matter of policy. Please read our thrust and directions on this subject byClicking here(All our efforts are in accordance with the laid down norms of Central Pollution Control Board for Industrial and Mixed use areas).Our CommitmentsTo improve the quality of our products and complete integration of various stages of production. To be conscious towards quality and pricing of our products. We strive by continuous research and development to make our products world class, having distinct identity and uniqueness. Our customers get best value for their money. To run the company profitably year after year. A workforce motivated, skilled and well looked after. A workplace safe, secure and hygienic. To make our Environment Clean, Healthy and Hospitable.

LOCATION MAP IN INDIA

Marketing Offices

Marketing Network

Andhra PradeshHyderabad,Vijayawada, Secunderabad, Vishakhapatnam, Tirupati

AssamGuwahati (Assam)

BiharGulabbagh(Purnia)

ChandigarhChandigarh

DelhiDelhi

GujaratAhmedabad,Rajkot, Surat

HaryanaFaridabad,Panchkula,Manesar

HimachalBaddi,Parwanoo,Kullu, Amb, Damtal, Kala Amb

Jammu & KashmirJammu

KarnatakaBangalore, Hubli

KeralaKochi

MaharashtraMumbai,Pune, Nagpur,Aurangabad, Nasik, Raigad

Madhya PradeshIndore

OdishaSambalpur, Rourkela

PunjabAmritsar, Mandi-GobindGarh, Derabassi,Ludhiana

RajasthanJaipur, Bhiwadi

Tamil NaduChennai,Hosur, Coimbatore

Uttar PradeshGhaziabad, Kanpur, Gorakhpur

West BengalKolkata,Siliguri, Hooghly, Bighati

JharkhandJamshedpur

ChhattisgarhRaipur

UttrakhandPantnagar, Haridwar

Dadra & Nagar HaveliSilvassa

Customer Service Centres

HaryanaFaridabad,Manesar

MaharashtraPune,Aurangabad, Nasik

PunjabLudhiana

Tamil NaduHosur

UttrakhandPantnagar

EXCELLENT MECHANICAL PROPERTIES

Practically , No Variation In Mechanical Properties Due To 100 % Hydrogen Annealing Furnace

The Raw Material Selection Is Done By Computerized Program For Different Applications

Close Tolerances On Thickness, Width And Length

- X- Ray Thickness Gauge To Measure Thickness To A Fraction Of A Micron.

- Radiometrie Thickness Checking Across The Width

- Automatic Computerized Thickness Control..

- Shim Less Tooling On Slitting Lines With Computerized Setting Ensures Correct Width In Close Tolerances .

- Precision Cut- To Length Lines To 0.75 Mm.Ensure Length Tolerances Better Than

- Automatic Electromagnetic Stacker On Shearing Lines To Produce Scratch Free

EXCELLENT SURFACE FINISH

Mill Clean System With A Synthetic Coolant To Avoid Any Coolant Mark On The Strip

Electrolytic Cleaning Line To Remove Iron Fines From Strip , Which Helps In Improving The Life Of Salt Spray Test After Painting And Avoids Carbon Soot Completely . It Also Increases The Tool Life In Press Shop

Latest And Sophisticated Edt Machine To Provide Controlled Texture For Better Paint Adhesion And To Achieve Surface Roughness To Close Tolerances

On- Line Tension Levelling Equipment For Better Flatness And Controlled Elongation

Computerized Inventory Control Management And Independent Skin- Pass Mill To Avoid Any Unwanted Storage In Between Annealing And Skinpass Process.

Kathabar Storage System To Avoid Atmospheric/Rustiness Oxidation Through De-Humidified Air..

Electro - Static Rust Preventive Oil Spray System For Controlled Oil Coating On Crca Surface . Oil Coating Can Be Maintained In Between 0.50 Gms/M To 2.00 Gms/M Per Side.

Among our major and valued customers in India are Hero Honda, Honda Scooters, Yamaha Motorcycles, JBM, Bajaj Autos, LML Ltd., Polar Industries, GE Motors, BPL, HMT, GNA group, Hero Cycles, Avon Cycles, Atlas Cycles, Delton Cables, Finolex Cables, Sterlite, Paramount Cables, TBS, Suzuki, Omax Auto, Maruti Udyog Ltd. etc.

Bhushan's products are being exported to China, Singapore, Malaysia, Hong Kong, Indonesia, Philippines, Dubai, Oman, Saudi Arabia, South Africa, Thailand, Korea, Myanmar, Sri Lanka, Nepal, Bangladesh, Vietnam, USA, nepal, England, Belgium, Turkey, Angola, and a host of African countries.

BSL( Formerly BSSL)is spearheading a technological revolution in Indias Cold Rolled Steel industry and, in the spirit of a true leader, is ceaselessly striving to raise the bar, achieve new milestones and set new benchmarks in terms of quality of products and degrees of customer satisfaction.The most brilliant milestone in BSLs journey of excellence is the setting up of a state-of-the-art Steel & Power plant in Orissa. On completion, the plant will be one of the largest integrated HR steel and Power complexes of the nation.BSLs Galvanised Sheets, Color Coated Sheets, Coils, Corrugated Sheets and Galume (Zinc and Aluminium coated) Sheets/Coils are being accepted and appreciated across the world...Amongst the various reasons behind BSL's unprecedented growth and rapid integration on the steel value chain, perhaps, the most important would be its unwavering focus on acquiring the latest technology and know-how. The most important reason behind this focus has been BSL's commitment to provide its customers with the best quality products. The result, to say the least, has been awe-inspring growth.

The Khopoli plant, commissioned in 2004 has been playing a remarkable role not only in the growth of exports, but in the production of a much wider variety of value added steel like Colour Coated Sheets, High Tensile Steel Strappings, Hardened and Tempered Strips and Precision Tubes. In addition to these, the Khopoli plant has recently launched the Galume value added steel (Aluminium & Zinc Coated Sheet) for the first time in the country.

Bhushan Power & Steel Limited, a fully integrated 1.5 Million TPA Steel making Company with turnover of INR3873 Crores (USD 950 Million) and 7 World Class ISO 9000 Certified State of the Art Plants at Chandigarh, Derabassi, Kolkata and Orissa in India. A leading manufacturer of flat, rounds and long products including value added products with total steel value chain right from Coal Mining, Billets, HR Coils, Pig Iron, CR Coils, GP/GC, Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel, Wire Rod and Special Alloy Steel.Successfully commissioned 1.5 Million TPA Greenfield Steel and Power Plant in Orissa with HR Coil making facilityFirst in Private Sector in the State of Orissa. For the Orissa plant, technology and equipments are procured from world-renowned companies like Lurgi from Germany, ABB Ltd., SMS Demag, Siemens etc. Bhushan is selling its Value added range of products in Secondary Steel through a large distribution network in India (comprising more than 35 sales offices) and Abroad.A rock-solid foundation combined with continuous upgradation and innovation has ensured that we have constantly surpassed our goals. Our end-to-end portfolio offers a wide spectrum of products with consistently superior quality. In addition to our export thrust, we supply to fast-growing sectors like automotive, white goods, construction, furniture, fasteners, telecommunication, etc.VISION

Giving Definition To A Far-sighted Vision

The vision of evolving into a totally integrated steel producer, committed to achieving the highest standards of quality through cutting-edge technology, is being realised at Bhushan Steel Ltd.

If you can anchor your organisation with a single-mindedness of purpose, for providing-the best service, technology and quality to customers and stakeholders, then you can deliver higher value for money wrthin schedule and budget, and continue to thrive even in the face of rapid change and other challenges besotting the Indian economy and especilly the steel industry.This is, precisely, what BSL has been doing since its inception: Acquiring the latest technology sourced from the global leaders and maintaining global quality standards; continually upgrading the steel plants and efficiently implementing projects within schedule and budget always meeting financial obligations on time and yes, these are the hallmarks of BSL's Saga of Excellence.

RECOGNITION

ISO 14001 : 2004 ISO/TS/16949:2002OHSAS 18001: 1999

KEY PERSONSShri Brij Bhushan Singal

Chairman

Shri Neeraj Singal

Managing director

Sh. Sandeep Bakhshi

Nominee Director of ICICI Bank

Shri MV Surya Narayana

Nominee Director of LIC

Shri Ravi Kant Srivastava

DirectorPERFORMANCE Performing To Catalyse Progress With A Keen Focus On Quality

Putting a spotlight upon the brilliant track record of the company would reveal several attributes that are global in their scope, which have translated in a sustainable phase of unprecedented growth for BSL The more important ones out of These attributes include

Performance at a Glance (Rs. In Crores)

Year2001200220032004200520062007

Gross Sales 1058113912631745286830704202

Exports 70115300389105110061527

PBDIT177183202277410408659

Net Profit 46466196153154313

Cash Accruals 105108133203317312580

Net Worth 4815285736648059601338

Gross Block 94098913021529204430914586

EPS (Rs.) 14141522383875

Interest Coverage Ratio 2.702.713.044.185.084.928.50

Specification

State-of-the-art R&D center, replete with advanced quality control equipment and conforming to the most stringent international standards.

Attainment of Export House status in the very first year of its foray into exports and consequentlybeing honoured with Trading House status (Export-Sales for 2005-2006 was Rs. 1006 crores).

As the single largest supplier to almost all automobile and white goods manufacturers of the nation, BSL has quite decisively established its leadership industry.

Introduced Galume for the first-time in India.

In addition to "the recent commissioning of its colour coated sheet line, BSL has also developed special grades of import substitute C R steel, which include;

HSLA (High Strength Low Alloy) steel, remarkable for its greater strength wrth lesser weight, ideal for critical car panels

IF Steel, crucial for critical applications like Car Body Outer Panels and white goods Ultra Thin Picture Tube shield, which has value addition of over 300%

High Tensile material for wheel rims

Cotton steel for rail coaches

CODE OF GOVERNANCE

The Company is committed to attain the highest standard of Corporate Governance. It recognises that the Board is accountable to all the Stockholders for good governance. The philosophy of the Company in relation to Corporate Governance is to ensure transparency in all its operations, make appropriate disclosure and enhanced shareholders value without compromising in anyway and in compliance with laws and regulations.

BOARD OF DIRECTORS

The Board of Directors consists of twelve Directors

Composition and category of Directors is as follows

CategoryName of Directors

Promoters/Executive Directors Sh. Neeraj Singal

Promoters Non-Executive Directors Sh. B B Singal

Non-Promoters Executive Directors Sh. A K KhushuSh. Nittin JohariSh. P.K. Aggarwal Sh. Rahul Sen Gupta

Non-Executive Director Sh. Mohan Lal

Independent Non-Executive Directors Sh. Ravi Kant Srivastava Sh. V.K. Mehrotra

Nominee DirectorsSh. Sandeep Bakhshi(Nominee Director ICICI Bank)Sh. M V Suryanarayana (Nominee Director LIC)

Presently the Board consists of Twelve (12) Directors, out of which Seven (07) are non executive Directors, Four (04) of whom being independent

ATTENDANCE OF EACH DIRECTOR AT THE BOARD MEETINGS, LAST ANNUAL GENERAL MEETING AND NUMBER OF OTHER DIRECTORSHIP AND CHAIRMANSHIP / MEMBERSHIP OF COMMITTEE OF EACH DIRECTOR IN VARIOUS COMPANIES.

Sr. No. Name of DirectorsAttendance Particulars No ofother directorshipsand committee membership/chairmanshipRearks

No. of Board Meetings held during their tenure No. of Board Meetings attended Attendance at last AGM Other Director shipsCommitteememberhipCommittee Chairman ship

1Sh. B.B. Singal0403No110402

2Sh. Neeraj Singal0403Yes0902--

3Sh. Sanjay Singal04--No030303

4Sh. Mohan Lal0403Yes010101

5Sh. M V Suryanarayana0403Yes--02--

6Sh. Ravi Kamt Srovastava 0302No------Appointed w.e.f. 25.07.2005

7Sh. V.K. Mehrotra0202No------Appointed w.e.f. 26.10.2005

8Sh. Sandeep Bakhshi----No01----Appointed w.e.f. 28.03.2006

9Sh. J.K. Jain0101No------Appointed on 28.11.2005 and withdrawnw.e.f. 28.03.2006

10Sh. Subir Bisht 0301No0302--Withdrawn w.e.f. 28.11.2005

11Sh. A.K. Khushu 0402No------

12Sh. Nittin Johari 0303No0201--Appointed w.e.f. 25.07.2005

13Sh. P.K. Aggarwal0403Yes0502--

14Sh. Rahul Sen Gupta0302No03----Appointed w.e.f. 25.07.2005

No.Of Board Meetings Held And The Dates On Which Held

During the year 2005-2006 Four (04) Board Meetings were held on 30/04/2005, 25/07/2005, 26/10/2005 and 31/01/2006.

PRODUCTSCABLE TAPESThese Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering Applications etc.

Specifications of TubesERW TUBESCEW TUBES

OUTER DIAMETER (MM)6.00 TO 127.00 MM09.00 TO 110.00 MM

THICKNESS(MM)0.40. TO 6.000.80 TO 6.00

LENGTHUPTO 12 MTRS.UPTO 12 MTRS.

APPLICATIONSAutomotive,Boiler & Heat Exchangers ,Air Heater, GEN. EGG., Bicycle & Propeller ShaftsAutomotive, Boiler, Shock Absorbers, Textiles, General Engg. Propeller Shafts, Cylinder bore tubes for special applications & front fork tube for two wheeler.

Cable Tapes are manufactured at our Chandigarh and Kolkata plants.GP COILSThese Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering Applications etc.

Specifications of TubesERW TUBESCEW TUBES

OUTER DIAMETER (MM)6.00 TO 127.00 MM09.00 TO 110.00 MM

THICKNESS(MM)0.40. TO 6.000.80 TO 6.00

LENGTHUPTO 12 MTRS.UPTO 12 MTRS.

APPLICATIONSAutomotive,Boiler & Heat Exchangers ,Air Heater, GEN. EGG., Bicycle & Propeller ShaftsAutomotive, Boiler, Shock Absorbers, Textiles, General Engg. Propeller Shafts, Cylinder bore tubes for special applications & front fork tube for two wheeler.

GP Coils are manufactured at our Odisha and Kolkata plants.

STEEL COILSThese Tubes are widely used for Power and Industrial boilers, Transformers, Super heaters, Automobiles and Bicycles, Railway Electrification, Furniture and General Engineering Applications etc.Specifications of TubesERW TUBESCEW TUBES

OUTER DIAMETER (MM)6.00 TO 127.00 MM09.00 TO 110.00 MM

THICKNESS(MM)0.40. TO 6.000.80 TO 6.00

LENGTHUPTO 12 MTRS.UPTO 12 MTRS.

APPLICATIONSAutomotive,Boiler & Heat Exchangers ,Air Heater, GEN. EGG., Bicycle & Propeller ShaftsAutomotive, Boiler, Shock Absorbers, Textiles, General Engg. Propeller Shafts, Cylinder bore tubes for special applications & front fork tube for two wheeler.

Precision Tubesare manufactured at our Odisha, Chandigarh and Kolkata plants.

WIRE ROD AND BAR MILLWith the introduction of most technologically advanced special and alloy steel long product rolling complex for manufacture of value added bars and coils, a new dimension has been added in BPSL's long history in the steel business.

The Long Product Rolling Complex consists of a most modern 0.5 million tpa multiproduct Wire Rod and Bar Mill (18 pass Horizontal & Vertical Continuous Mill) supplied by Danieli Morgardshammar, Italy and KOCKS, Germany (4 pass mill).The state of the art Wire Rod & Bar Mill, one of the most modern plants of this type in the world, will produce: Straight Bars Bar in Coil form Wire rods

RAW AND FINISHED PRODUCTS

Input MaterialsItemTypeSourceSize (mm)Lenth (Metres)Maximum Weight (Kg)Maximum Weight (Kg)

1BilletSteel Melt Shop CCM200x2009.5mts.3141800-3000

2BilletSteel Melt Shop CCM180x18012mts.2481488-3000

3BilletSteel Melt Shop CCM160 X16012mts..2001200-2400

Finished Product Bundle CharacteristicsNo.LENGTHWEIGHTMAX DIA.END CUTS

(Meters)KgmmCold Shear Metallic Saw & Abrasive Cut

162000300

2124000300

(*) The actual min. and max. weight would depend on product linear weight, number of bars per layer and number of layers per stack selected.Wire Rod Coil CharecteristicsItemOutside DiaInside diaNo & Type of tiesWeight

1Approx. mmApprox mmNo - typeKg

212509004-flat knot2100,2400,3000

Bar in Coil CharecteristicsItemOutside DiaInside diaNo & Type of tiesWeight

NoApprox. mmApprox mmNo - typeKg

1140010504-flat knot2100,2400,3000

OPREATIONSBHUSHAN POWER & STEEL Hisar PlantBHUSHAN POWER & STEELs parent plant at Hisar is underway expansion to meet annual melting and hot rolling capacity of 7, 20,000 MT, further to be expanded to 1.5 MT by 2010. The current cold rolling capacity of 2, 75, 000 tons at Hisar is being upgraded to 3, 75,000 tons within a year to cater to the domestic market, with heavy investments and impetus on production of value added stainless steel products. The new facility will process Ferrite grades of stainless steel, which promises to fill in a large share of stainless market. BHUSHAN POWER & STEEL is also the pioneer in production of high value added precision strips of razor blade quality and other grades for critical applications. The production capacity of the precision strip unit is also being increased from 15000 tonnes to 30000 tonnes.At Hisar, Bhushan Stainless has India's only composite stainless steel plant for the manufacture of Stainless Steel Slabs, Blooms, Hot rolled and Cold Rolled Coils, 60% of which are exported worldwide. Precision Strips The Company produces stainless steel precision strips in various grades. These strips are produced in narrow 20-Hi mills in the precision cold rolling unit. Blade Steel The Company is the exclusive producer of stainless steel strips for making razor and surgical blades in India. Coin Blanks Besides supplying CR Strips to the Government of India, the plant at Hisar houses a coin blanking line for supply of coin blanks to the Indian Mint and Mints in the global markets.

BHUSHAN POWER & STEEL Greenfield Orissa: Poised to Join Top league of Stainless Steel Producers Worldwide

As part of the massive expansion plans across locations, BHUSHAN POWER & STEEL is setting up one of worlds largest single location fully integrated stainless steel plant at Orissa; the 1.6 Million TPA Greenfield Project envisages complete integration from mining to cold rolling, along with 500MW captive power plant.Entailing investments of INR 2257 Crore in Phase I & INR 5597 Crore in Phase II, the project is being commissioned in phases, with majority of Phase I envisaging the Ferro Alloy shops and thermal power already become operational in 2007-08. Majority orders of equipments for Phase II of the project have already been placed with leading equipment suppliers and work on the ground is underway.WAY

way Ltd. Established in collaboration with Steelway of Italy provides customized products and distribution services in stainless steel to meet specific requirements of Slitting /CTL / Blanks, for the customers across consumer durable, automotive segments, OEMs and is the largest provider of coin blanks to the Govt. of India mint. JSSL has two service centers in operation at Gurgaon and Mumbai and additional two under way commissioning at strategic locations across key stainless markets.Bhushan Stainless, OrissaThe Company has successfully implemented 2.3 million tpa Integrated Steel and Power Plant in Orrisa comprising 8 DRI Kilns of 500 TPD, 376 MW Power Plant, Coal Washery, two CSP Plant, Blast Furnace, Coke Oven Plant, Sinter Plant, Oxygen Plant, Steel Making and Lime & Dolomite Plant, Cold Rolling Mill, Galvanizing and Galvalume.

Public Infrastructure: Green Delhi B-Q-S & Parivartan City Infrastructure Ltd. Changing Face of Urban Infrastructure & Outdoor Media Green Delhi B-Q-S and Parivartan City Infrastructure are subsidiaries of BHUSHAN POWER & STEEL, marking new venture in stainless steel public infrastructure, outdoor media and introduce new and finer technology and materials to compliment outdoor signage design concept in all Stainless Steel Structure & street furniture; the two ventures are set to add new dimension to urban landscaping & infrastructure & Outdoor Media Display. Exploring new horizons and successfully at that, is BHUSHAN POWER & STEELs way of contributing towards global modernization and developmental initiatives for the people & regions it operates.Arc (Bhushan Architecture Limited)arc the brand line of Bhushan Architecture essentially epitomizes the versatility and innovative possibilities that only Stainless Steel could justify; signifying BHUSHAN POWER & STEELs impassioned efforts to bring stainless steel closer to common place applications, JAL was conceived to realize BHUSHAN POWER & STEELs incessant quest to push the envelope and raise the bar to provide state-of-the-art design & architectural solutions for the burgeoning infrastructure and lifestyle living sectors.

Lifestyle: art d in ox ( Austenitic Creations Pvt. Ltd.)

Austenitic Creations Pvt. Ltd. (art d inox), the forward integration venture and BHUSHAN POWER & STEELs lifestyle division offers premium, designer lifestyle products in stainless steel for home dcor, lifestyle, office, bar, bath and accessories. art d inox has 11 exclusive boutiques across the country and also over 300 shop-in-shop retail outlets. The young company has successfully created a niche while breaking newer grounds with innovation and style.

BHUSHAN POWER & STEEL Today: Cost Leadership Product Innovation CRM distinguish BHUSHAN POWER & STEEL International standard Stainless Steel flat products in Austenitic, Ferritic and Martensitic grades in over 40 countries worldwide. Mine to Mint BHUSHAN POWER & STEEL leads with majority share of the Indian market with strong integrated value chain from captive raw inputs to stainless steel end products & innovative end user solutions. Stainless Green - ISO 9001, ISO 14001 &OHSAS 18001 certified, BHUSHAN POWER & STEEL follows stringent international green processes across all plant locations in Hisar, Orissa, Vizag, Indonesia and Vietnam. Expanding Footprints with presence in over 40 countries, BHUSHAN POWER & STEEL is expanding footprints both in capacities and global network across key Stainless Steel markets.Steel Making In Bhushan Stainless.There are two Steel Melt Shops I and II. Steel Melt Shop I is dedicated to production of stainless steel slabs and blooms while Steel Melt Shop II produces blooms.Steel Melt Shop IThis shop comprises of one Electric Arc Furnace, one ASM Converter and one VOD unit one Ladle Refining Furnace (LRF), one Continuous Slab Casting Machine and one Twin Strand Bloom Caster. The shop is capable of producing 150,000 metric tons of stainless steel slabs and blooms in various grades annually. The VOD unit here ensures that the stainless steel has a very low inclusion and gas content. Stainless steel required for demanding applications by nuclear power plants, space and other sophisticated applications is produced here.Concern for EnvironmentEco-Friendliness:-Bhushan Stainless is committed to complying with the requirements of the state Pollution Control Board. Having received the ISO 14001 certification, Bhushan Stainless has a fully fledged environment department which manages the existing facilities for pollution control. It has a sewage treatment plant for domestic affluent whose treated water is reused for horticulture purposes as well as in industrial applications. The air pollution control systems consist of a wet scrubber of ASM Convertor in Steel Melt Shop-1 and a Bag House for Electric Arc Furnace. A centralized fully automatic PLC controlled dry air pollution control system has been installed for the complete shop floor at Steel Melt Shop II for Electric Arc Furnace, Ladle Refining Furnace and ASM Convertor.

MANAGEMENT:BOARD OF DIRECTORS

Chairperson Smt. Savitri Bhushan

Vice Chairman & Managing DirectorSh. Ratan Bhushan

DirectorSh. Naveen Bhushan

DirectorSh. T.R. Sridharan

Joint Managing Director & Chief Operating OfficerSh. R.G. Garg

Directors Dr. L.K. Singhal

Directors Sh. Suman Jyoti Khaitan

Executive Director Sh. N.P. Jayaswal

Executive Director Sh. Rajinder Parkash

DirectorSh. B.D. Gupta

Director - Corporate AffairsSh. N.C. Mathur

Corporate Social ResponsibilityMr. OP Bhushan, had a vision of a progressive state - a state where men and women worked shoulder to shoulder towards a happier tomorrow. Bhushan Stainless constantly echoes those thoughts and takes its role as a responsible corporate citizen very seriously. Giving back to the community at large has been an objective from the very beginning.

Schools at various levels have been set up to educate the specifiers of the future. The Vidya Devi Bhushan and The Bhushan Modern School, at Hisar, is fully child oriented and ensures holistic development of a students mental and physical potential.Adopting villages and thus contributing to the development of a region has also been part of the overall Bhushan plan. Improving of medical facilities is yet another field of endeavor. NC JIM Care, at Hisar offers the entire range of diagnostic, treatment and surgical facilities. Immunization drives and free healthcare camps on different medical aspects are also conducted from time to time.

At our Stainless Steel plants, the challenge faced is to make and process stainless steel without adversely impacting the environment. Bhushan Stainless has a formal environmental protection program in place since inception. We recognize the importance of protecting our environment, and that of our children and our commitment is unwavering in this respect.Bhushan Stainless Ltd. complies with the requirements of the State Pollution Control Board. Having received the ISO 14001 certification, the company has a full-fledged environment department that manages the existing facilities for pollution control.

It has a sewage treatment plant for domestic affluent whose treated water is reused for horticulture purposes as well as in industrial applications. With greater efforts being made to achieve low long-term maintenance costs, less environmental impact and greater concern with life cycle costs, the market for stainless steel continues to improve.Some stories using pics

On 01.05.09,Ms Bindu a physically challenged girl was presented a tricycle. Ladies from Bhushan Stainless Club visited Govt. IE Middle School on 11.05.09. Mrs. Durga, Principal of the School briefed about the School activities and appreciated collaboration of BHUSHAN POWER & STEEL Ltd with the Special children.

The admission process for the courses in Dress designing & Fashion Technology, Beauty Culture, Computer Education and Electrical Trade is currently going on, with adequate publicity measures having been undertaken. Over 270 prospectuses along with admission forms were sold to within a few days.The Stainless Skill Training Institute in collaboration with CII & City & Guilds is conducting an examination for students past and present in trades of dress designing & Fashion Technology, Beauty Culture and Electrical Trade. The Government recognized certification process will help the students in seeking employment.

Relief Operation at Matikar Village by CSR teamEarly morning on 13th May a massive fire devastated six homes in a village close to our plant at Jajpur perhaps sparked due to short circuit. On getting information the CSR team rushed to the site and immediately took stock of the situation after carrying a quick assessment of the damage. The CSR medical team treated burn injury cases and relief items like food and clothes were distributed among the victims. Cash was also given to the individuals toward support for re-construction of their thatched houses.

Cleaning of Water tankMarutikar village, where the fire broke out on 13 May, is being developed into a model community village, with programmes in collaboration with Soputra, on Pisciculture, Beetle-vine cultivation, a women empowerment centre and a Non Formal Education Centre. The first project of Pisciculture has already commenced with cleaning of the water tank, which by itself is a big challenge.

Programme on HIV & AIDSAs a follow up to the HIV & AIDS programme, a workshop was conducted by a resource person from Modi Care Foundation at Jajpur. Over 80 participants groups of 20 benefited from the awareness programme.

Health Care ProgrammeBHUSHAN POWER & STEEL has started a no of health facilities programme that include Mobile Health Vans. These go from village to village and along with the checkup of villagers provide them with medicines and instructions for better health.

Along with this the BHUSHAN POWER & STEEL is providing funds and a no of programs are conducted in association with WHO, CRY and other NGOs from time to time. In short The BHUSHAN POWER & STEEL is fulfilling its Corporate Social Responsibility.

INTRODUCTION TO THE TOPICMeaning of Ratio: A ratio is simple arithmetical expression of the relationship of one number to another. It may be defined as the indicated quotient of two mathematical expressions. According to Accountants Handbook by Wixon, Kell and Bedford, a ratio is an expression of the quantitative relationship between two numbers.Ratio Analysis: Ratio analysis is the process of determining and presenting the relationship of items and group of items in the statements. According to Batty J. Management Accounting Ratio can assist management in its basic functions of forecasting, planning coordination, control and communicationIt is helpful to know about the liquidity, solvency, capital structure and profitability of an organization. It is helpful tool to aid in applying judgment, otherwise complex situations. Ratio may be expressed in the following three ways: Pure Ratio or Simple Ratio: It is expressed by the simple division of one number by another. For example, if the current assets of a business are Rs. 200000 and its current liabilities are Rs. 100000, the ratio of Current assets to current liabilities will be 2:1. Rate or So Many Times: In this type, it is calculated how many times a figure is, in comparison to another figure. For example , if a firms credit sales during the year are Rs. 200000 and its debtors at the end of the year are Rs. 40000 , its Debtors Turnover Ratio is 200000/40000 = 5 times. It shows that the credit sales are 5 times in comparison to debtors. Percentage: In this type, the relation between two figures is expressed in hundredth. For example, if a firms capital is Rs.1000000 and its profit is Rs.200000 the ratio of profit capital, in term of percentage, is 200000/1000000*100 = 20%

ADVANTAGE OF RATIO ANALYSIS 1. Helpful in analysis of Financial Statements.2. Helpful in comparative Study.3. Helpful in locating the weak spots of the business.4. Helpful in Forecasting. 5. Estimate about the trend of the business.6. Fixation of ideal Standards.7. Effective Control.8. Study of Financial Soundness.

LIMITATIONS OF RATIO ANALYSIS1. Comparison not possible if different firms adopt different accounting policies.2. Ratio analysis becomes less effective due to price level changes.3. Ratio may be misleading in the absence of absolute data.4. Limited use of a single data.5. Lack of proper standards.6. False accounting data gives false ratio.7. Ratios alone are not adequate for proper conclusions.8. Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIO Ratio may be classified into the three categories as follows:Liquidity and Solvency Ratio Current Ratio Quick Ratio or Acid Test Ratio Debt Equity Ratio

Profitability Ratios Operating Ratio Profit before Tax Return on Investment Gross Profit Ratio Net Profit Ratio Return on Capital Employed Return on Net Worth

Debt Coverage Ratio Interest Coverage Ratio

Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Fixed Assets Turnover Ratio Net Assets Turnover Working Capital Turnover Ratio

Equity Related Ratios Earnings Per Share (EPS) Book value per shareFINDINGS2004-052005-062006-072007-082008-09

Liquidity and Solvency RatiosCurrent Ratio1.461.251.351.501.61

Quick Ratio1.130.961.061.101.19

Debt Equity Ratio0.450.240.260.290.26

Profitability Ratios (%)Operating Profit Ratio6.617.546.116.025.08

Profit Before Interest And Tax Ratio5.275.384.644.574.49

Gross Profit Ratio 3.614.643.313.394.51

Net Profit Ratio1.201.591.480.841.24

Return On Capital Employed12.2710.537.087.349.18

Return On Net Worth3.523.472.681.562.94

Debt Coverage RatiosInterest Cover1.621.731.611.621.68

Management Efficiency RatiosInventory Turnover Ratio5.445.005.194.566.85

Debtors Turnover Ratio1.632.382.112.233.35

Fixed Assets Turnover Ratio8.355.222.992.662.31

Net Assets Turnover Ratio1.991.751.431.411.86

Working Capital Turnover Ratio94.1063.1585.0199.5076.16

Equity related RatiosEarnings Per Share1.603.023.161.853.54

Book Value45.4087.10118.03118.65120.25

CONCLUSIONSLiquidity and Solvency RatiosCurrent RatioIts healthy and also increasing if the last year trends are analyzed, also its ideally good.

Quick RatioIts healthy and also increasing if the last year trends are analyzed, also its ideally good.

Debt Equity RatioThis indicates that the ratio is almost constant and if ideal condition is regarded, the ratio is good.

Profitability Ratios(%)Operating Profit RatioThe declining trend in the ratio shows that the company is willing for higher margin of profit on sales, and also attaining it also.

Profit Before Interest And Tax RatioThough its good as looking towards the ideal values. The declining trend shows that the BHUSHAN POWER & STEEL is now trying to grow at a much faster rate compares to past.

Gross Profit Ratio The gross profit ratio shows that the BHUSHAN POWER & STEEL is growing by the mode of increase in sales and also cost cutting

Net Profit RatioThere is a positive increase in the Net profit shown. Though the BHUSHAN POWER & STEEL can perform better as in the past.

Return On Capital EmployedThe ratio indicates that the promoters/shareholders are earning a good profit looking at the past trends even at the time of recession

Return On Net WorthThe ratio indicates that the promoters/shareholders are earning a good dividend looking at the past trends even at this point of time.

Debt Coverage RatiosInterest CoverHere this indicates that the BHUSHAN POWER & STEEL has procured a huge amount of loan though looking at the past trends the ratio is steady.

Management Efficiency RatiosInventory Turnover RatioThe ratio shows that there are fluctuations but looking at the value its good and the BHUSHAN POWER & STEEL is steadily increasing.

Debtors Turnover RatioIts healthy and also increasing if the last year trends are analyzed, also its ideally good.

Fixed Assets Turnover RatioThough there is a steep decline in the ratio but the reason for this that the plants at different locations were closed either for the upgrade purposes. But looking at the trends for the past 4 years its almost steady.

Net Assets Turnover RatioHere we find that the BHUSHAN POWER & STEEL has a steady ratio thats really satisfactory.

Working Capital Turnover RatioThis ratio shows that the BHUSHAN POWER & STEEL is able to recover its funs at a much better rate compared to the past years and its a better sign for the growth of the BHUSHAN POWER & STEEL.

Equity related RatiosEarnings Per ShareThere is a positive trend that shows a better image of the firm

Book ValueThe increase in the book value shows that the image of the firm is increasing and also the goodwill.