1.

Tata steel BSL limited formerly known as bhusan steel limited is the largest-Delhi
manufacturing companies based in Delhi. Manufacturing companies established in
1981. Lumber of employees: 5000+headquarters:new Delhi India revenue: us$1.7 billion
parent: total steel
bhusan steel ltd. Company history in January 14,1987, brij bhusan singal and his sons
sanjay singal, neeraj singal and associate companies took other the management of the
company by acquiring the entire stage. In the year 1987, the company become a
deemed public ltd. Company.
2. The company became a deemed public limited company linder section 43-a (I.A) of the
companies act, 1956 with from 14th July. 1992- the name of the company was change to
the present name of bushan steel and strips limited and fresh certificate of
incorporation was issued on 9th June. The biggest milestone in this high momentum
journey of bhusan steel was the starting of the odisha plant. The delhi based bhusan
steel and strips ltd to set up two steel cold rolling. 9th January 2013 the company
changed its name to bhusan steel limited, dhenkanal, odisha-established in 2000. The
present ceo of this company is TV Narendran.

Introduction

Ratio

A ratio is a simple arithmetical expression of the relationship of one number to another. It may
be defined as the indicated quotient of two mathematical experissions.accounts handbookby
which according to kohler, a ratio is the relation, of the amount, a , to another, b, expressed as
the ratio of a tob, a:b or as a simple fraction, integer, decimal, fraction or percentage.

Liquidity ratios

Liquidity ratios to the ability of a certain to meet itrs current organization as and when these
become due, to measure the liquidity of a firm, the following ratios can be calculated:

I. Current ratio
II. Quick or acid test or liquid ratios,
III. Absolute liquid ratios or cash position ratios

Current ratio:- current ratio may be defined as the relationship between current assets and
current liabilities ratio also known as working capital ratio is a measure of general liability and is
most widely used to make the analysis of a short term financial position of liquidity of a firm

Current ratio=current assets/current liabilities

 The current ratio equal or near to the rule thumb of 2:1 i.e. current assets double the current
liabilities is considered to be satisfactory.

ii. Quick or acid test or liquid ratio.

quick ratio may be defined as the relationship between quick (LIQUID ASSETS) ans
current or liquid liabilities. An assets is said to be liquid if it can be converted into cash with in a
short period without loss of value. Cash in hand bills receivables, sundry debtors, marketable
securities and short term of temporary investments.

Quick or liquid or acid test ratio=quick or liquid assets/current liabilities

As rule of thumb or as a convention quick ratio of 1:1 is considered satisfactory.

iii. Absolute liquid ratio or cash ratio:

Absolute liquid ratio=absolute liquid assets/current liabilities

Absolute liquid assets include cash in handat bank and marketable securities or temporary
investments. The executables norm for this ratio is 50% or 0:5:1 or 1:2.

(B) activity ratio or assets management ratios

activity ratio measure the efficiency or effectiveness with which a firm manages its resources or
assets. These ratios are also called turnover ratios because they indicate the speed with which
assets are converted or turned over into sales.

I. inventory turnover or stock turnover ratio:

Inventory turnover ratio also known as stock velocity is normally calculated as sales/ average
inventory. Inventory turnover ratio (ITR) indicates the number of times the stock has been
turned over during the period the period and evaluates the efficiency with which firm is able to
manage its inventory.

Inventory turnover ratio=cost of goods sold /average inventory

If average inventory at cost is not known then inventory at seeing price then taken.

Inventory Turnover Ratio=net sales net revenue from operation/inventory

This period is calculated by dividing the number of days by inventory turnover

Inventory conversion period=days in a year/inventory turnover ratio

Or inventory conversion period=365/ inventory turnover ratio

ii). Debtors or receivables turnover ratio

A concern may sell goods in cash as well as on credit. Credit is one of the important
elements of sales promotions. Debtor’s turnover ratio indicates the velocity of debt collection
of firm. In simple words, in indicates the number of times average debtors are turned over
during a year.

Debtors turnover ratio=net credit annual sales/average trade receivables

But when the information about opening and closing balances of trade receivables and
credit sales is not available then the debtors turnover ratio can be calculated as

=total net sales/debtors+ b/r

Average cancelation period ratio:

The average cancelation period represents the average number of days of which a firm has to
wait before its receivables are converted into cash.

Average collection period =no of working days/receivables turnover ratio

iii). Creditors/ payables turnover ratio

in the course of business operations, a firm has to make credit purchases and incur short-term
liabilities. The analysis of creditor’s turnover is basically the same as of debtors turnover ratio
expect that in place of trade creditors are taken as are of the components of these ratio.

Creditors payables turnover ratio=net credit annual purchases/average trade payables

In the obscene of net credit purchases and average trade payables then taken,

Creditors/ payables turnover ratio=no of working days/payables turnover ratio

iv). Working capital turnover ratio and current assets turnover ratio
working capital turnover ratio indicates the velocity of the utilization of net working capital.
This ratio indicates the number of times the working capital is turned over in the colrse of a
year. A higher ratio indicates efficient utilization of working capital and a low ratio indicates
otherwise but a very high working capital turnover ratio is not a good situation for any firm.

Working capital turnover ratio=cost of sales or revenue firm operations

If opening capital is not disclose, end will be used.

Bhusan steel limited annual report 2017-18

Note
Particulars
A) Assets
1) Non-current assets
a) Property, plant and equipment 3A 3036155.81 5176409.37
b) Capital work in progress 3B 117965.24 117060.76
c) Intangible assets 4 10.65 13.74
d) Investment in subsidiary associations and joint ventures 6A 15.00 36895.64
e) Financial assets
i) non-current assets 6A 107.67 95.79
ii) loans 6B 7265.35 9808.64
iii) other financial assets 6C 46666.61 56468.63
f) Other non-current assets 7 80836.20 67523.57
g) income tax assets Total non-current assets 8 2900.20 2555.17
B) CRRENT ASSETS 3291922.73 35466811.27
a. Inventories 9 402519.54
b. Financial assets
i. trade receivables 10 121957.81
ii. Cash and cash equivalents 11 59421.01
iii. Other balance with banks 12 32352.42
iv. Loans 6B 9173.73
v. other financial assets 6B
c. Other current assets 7 662236.68
total current assets