The Assessment of Financial Performance of Steel Industry- A Case Study on Bangladesh Steel and Re-rolling Mills (BSRM) Limited

Abstract

The assessment of financial performance is essential for sustainable growth and forecasting future risk of economic failure of a manufacturing company. The study is about the investigation of financial performance of Bangladesh Steel and Re-rolling
Mills during 2007-8 to 2011-12. The financial performance of this mill measured in terms of profitability, liquidity and solvency had been pitiable during the study period. Altman’s Z score model also reviled the overall financial performance of the mill had been at the lowest level of insolvency. Dependency on the foreign source for major portion of raw materials, price hike of imported raw materials, currency devaluation , budgetary constrains were mainly accountable for such situation. The study suggests some policy implication like reduce dependency on imported materials, introduce new technologies and research, modern marketing technique to increase sales, suitable pricing policy and the like.