Financial planning and its elements...

Financial planning and its elements Financial planning is an implement which allows evaluation of the current financial situation of the organization and predicting of its future financial performance. One of the objectives of the financial planning is to determine funds requirements and capital structure in order to understand the financial soundness of the organization. In addition to it, financial planning process helps the organizational management in framing of the financial policies for the control of the cash flow as well as in ensuring that the organization is employing its financial resources in the most efficient manner. Further, the financial planning demonstrates the direction of the organizational activities and analyses how each action has its influence on the financial stability of the organization. Also, financial planning helps the organizational management to make a decision about investments since it shows different ratios (such as equity ratio, debt ratio etc.). These ratios play an important role in the decision making process. Financial plan consists of four elements. These elements are (i) profit and loss projection, (ii) projected balance sheet, (iii) projected cash flow, and (iv) break-even analysis. These four elements are shown in Fig 1. Fig 1 Four elements of financial plan Profit and loss projection Profit and loss projection presents the plan of revenues and expenses of the organization over the specific accounting period. Profit and loss projection follows the same pattern as the profit and loss statement. Nonetheless, it reflects the data about the future. The presentation of the profit and loss statement differs from organization to organization.  However, the basic structure includes the basic five measures namely (i) gross profit, (ii) operating profit or earnings before interest and tax (EBIT), (iii) operating profit or earnings before interest, tax, depreciation and amortization (EBITDA), (iv) profit...

Development of the Technology of Electric Arc Furnace Steelmaking May05

Development of the Technology of Electric Arc Furnace Steelmaking...

Development of the Technology of Electric Arc Furnace Steelmaking  Development of the steelmaking technology takes place for meeting of a number of requirements. These requirements can be classified into four groups as given below. The technology has to meet the process requirements needed for producing different steel grades of required qualities. The technology is to meet the economic requirements needed for controlling the cost of production so that produced steel products are competitive. The technology is to meet the emission levels set by the regulatory agencies. The technology is to meet the health and safety requirements so that operators work in the area without any dangers, stress and stains. To understand electric arc furnace (EAF), it is necessary to understand what an electric arc is. An electric arc is a form of electrical discharge between two electrodes, separated by a small gap (typically, normal air). The best known example of this is lightning. Anyone who has performed arc welding is also familiar with electric arcs. If one connects the work piece to the negative side of a DC power source and an electrode to the positive side, touch the electrode momentarily and draw it a small distant apart from the work piece, then a stable electric arc forms between the electrodes and the work piece  and the heat from this arc is sufficient to melt the electrode and weld the work pieces together. The same idea is used in a larger scale in an electric arc furnace. The history of electric arc furnace (EAF) steelmaking is not very old. It is only slightly more than a century when the first furnace was commissioned to melt steel by utilizing electric power. The initial development of the technology took place, since these units made it possible...