Tuesday, February 20, 2018

Merger Performance: The Marriage between SAIL and MEL.

Merger Performance: The Marriage between SAIL and MEL.

  • Source: Amity Management Review . Jun-Dec2012, Vol. 2 Issue 2, p69-79. 11p.
  • Author(s): Leepsa, N. M.
  • Email: n.m.leepsa@gmail.com 
  • Abstract:The purpose of the study is to analyze the financial performance of Steel Authority of India Ltd (SAIL) after merger deal with MEL. The financial statements are analyzed for pre and post-merger five years (2000-2010) by using seven financial ratios. The accounting approach uses accounting measures and productivity measures of financial statements to evaluate the M&A success. In spite of creation limitations, accounting ratios are considered as reliable and convenient for making analysis since financial statements are audited. Ratio analysis is employed as is considered as a convenient technique to make a quantitative analysis of companies' performance. The results show that the financial performance of SAIL in terms of profitability, liquidity and solvency has improved after the merger. It indicates that merger deals improve the financial performance of companies. The limitation of the study is that it only focused on the financial aspect of merger but ignores which factor have impacted the deal's success and failure. Study can be made by controlling factors affecting steel industries. It would enable the organizations to have a choice between organic and inorganic growth strategy. Case based research on pre and post merger on steel companies is made which is few as far as knowledge is concerned. This paper is an attempt to look into a specific deal by which it would make deep understanding of merger performance in India.

About Leepsa...writer by chance but write by choice

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Chandler, Arizona, India
N. M. Leepsa is a young writer, teacher researcher, painter. She was born in 1985 in Bhubaneswar, India’s eastern state of Odisha. Her parents Nabaghan Jena(Father ) and Madhabika Jena(Mother) raised her with utmost care to give her higher education and support her achieve whatever academic credentials. She did her schooling at the Children’s Centre of Integral Education, Bhubaneswar, Odisha. She attended Ramadevi Women’s College (B.Com), Utkal University (M.Com);Ravenshaw University (M.Phil) for her college studies. After this, she was inspired to pursue her PhD from Vinod Gupta School of Management, Indian Institute of Technology Kharagpur. Completing her studies, she joined as faculty of finance in LMT School of Management, Thapar University, Patiala, Punjab and then worked at School of Management, National Institute of Technology, Rourkela, Odisha. She is currently pursuing her professional courses at Grand Canyon University, USA. She can be reached at • Email: leepsa.writer@gmail.com, • Facebook Page: https://www.facebook.com/Leepsa.writer • Blog: http://nmleepsa.blogspot.com/.

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