PROJECT REPORT
JSW STEEL LIMITED
M.COM IV SEMESTER-ACCOUNTING
(SESSION 2020-2021)
THE BHOPAL SCHOOL OF SOCIAL SCIENCES
Submitted to Submitted by
Dr. Amrita Sahu Pratibha Kujur
Associate Professor Roll-no`- 19103037
Department of Commerce
CERTIFICATE FROM THE PROJECT GUIDE
This is to certify that the Project Report titled “Quantitative analysis of JSW steel
limited Industry” is a bonafide work of Pratibha Kujur enrolment number
R200190580004 undertaken for the partial fulfillment of Masters in
Commerce (M. Com) degree of Barkatullah University under my guidance. This project work is
original and has not been submitted earlier for the award of any degree or diploma of any other
University or Institution.
Signature of the Guide
Dr. Amrita Sahu
Associate Professor
Department of Commerce,
BSSS, Bhopal
DECLARATION
I PRATIBHA KUJUR daughter of Tintus Kujur certify that the project report entitled on
“Quantitative analysis of jsw steel ltd. Industry”, Quantitative analysis report on JSW steel ltd.,
prepared by me is my personal and is an authentic work under the guidance of Dr. Amrita Sahu,
Associate Professor, Department of Commerce.
Date: 15/06/2021 Signature of the Student
Place: BHOPAL Name: Pratibha kujur
Class: M.COM (IV SEMESTER)
Roll Number: 19103037
TABLE OF CONTENT
S.No.
Particulars
Page.no.
1.
Introduction
1-2
2.
Objective
3
3.
Analysis
4
4.
Profit and loss account
5-7
5.
Balance sheet
8-9
6.
Trend Analysis
10
7.
Comparative Income Statement
11-13
8.
Comparative Balance Sheet
14
9.
Conclusion
15
10.
Sources
16
INTRODUCTION
JSW STEEL Ltd. is an Indian multinational steel making company based in Mumbai, Maharastra. It is a
subsidiary of JSW Group. Tracked back to 1982, when Jindal Group acquired Piramal Steel Limited,
which operated a mini steel mill at Tarapur in Maharastra and renamed it as Jindal Iron and Steel Company
(JISCO), Then on 2005 JISCO and JVSL merged and formed as JSW Steel ltd. It is one of the fastest
growing companies in India with a global footprint in over 140 countries. After the merger of ISPAT steel
.JSW Steel has become India’s second largest private sector steel company, currently capacity of the
company stands at 18 MTPA.
Branches of JSW Steel Limited
▪ Ahmedabad
▪ Bengaluru
▪ Chennai
▪ Delhi
▪ Faridabad
▪ Ghaziabad
▪ Guwahati
▪ Indore
▪ Kolkata
▪ Nagpur
1
Products Details
1. Hot Rolled
JSW Steel manufactures Hot Rolled coils ,plates and sheets of the highest quality at its state-of-
the-art.
1. Color coated
JSW is the largest producer of coated products in India.
2. Galvanized
JSW Steel Ltd.
Industry
Steel
Founded
1982
Founder
Sajjan Jindal (chairman)
Headquarters
Mumbai,Maharastra,India
Key People
Sheshagiri Rao MVS,
Dr. Vinod Nowal
Product
Steel, Flat steel product, Long
steel products, wire product
,plates
Total Assets
Rs.131,820 cr.(2020)
JSW Steel is the largest manufacturer and exporter of galvanized steel in India, and the first
supplier of products with higher coating to the solar sector in the country.
3. Avante Steel Doors
OBJECTIVE
1. To know how the company has been affected during this pandemic.
2. To know the approx. rate of changes happened during this pandemic.
3. To know the current financial Position of the company.
4. And to assess the comparative study.
ANALYSIS
This project is about the analysis and interpretation of the financial statements of the Company.
Methods used for Analysis:-
Trend Analysis.
Comparative Financial Statement Analysis.
PROFIT AND LOSS ACCOUNT
JSW STEEL LTD.
Particulars
Mar'21
12Months
INCOME:
Sales Turnover
70727.00
Excise Duty
.00
NET SALES
70727.00
Other Income
669.0000
TOTAL INCOME
71396.00
EXPENDITURE:
Manufacturing Expenses
5210.00
Material Consumed
28070.00
Personal Expenses
1501.00
Selling Expenses
.00
Administrative Expenses
16687.00
Expenses Capitalised
.00
Provisions Made
.00
TOTAL EXPENDITURE
51468.00
Operating Profit
19259.00
EBITDA
19928.00
Depreciation
3781.00
Other Write-offs
.00
EBIT
16147.00
Interest
3565.00
EBT
12582.00
Taxes
3803.00
Profit and Loss for the Year
8779.00
Non Recurring Items
-386.00
Other Non Cash Adjustments
.00
Other Adjustments
.00
REPORTED PAT
8393.00
KEY ITEMS
Preference Dividend
.00
Equity Dividend
.00
Equity Dividend (%)
.00
Shares in Issue (Lakhs)
30200.00
EPS - Annualised (Rs)
27.79
BALANCE SHEET
Balance Sheet of JSW Steel Co`
Particulars
Mar'21
Mar'20
Mar'19
Mar'18
Mar'17
Liabilities
12 Months
12 Months
12 Months
12 Months
12 Months
Share Capital
302.00
301.00
532.00
302.00
301.00
Reserves & Surplus
46675.00
38061.00
34592.00
27605.00
23797.00
Net Worth
46977.00
38362.00
35124.00
27907.00
24098.00
Secured Loan
40836.00
46060.00
32806.00
16991.00
18667.00
Unsecured Loan
.00
.00
.00
14732.00
14566.00
TOTAL LIABILITIES
87813.00
84422.00
67930.00
59630.00
57331.00
Assets
Gross Block
76823.00
64041.00
51772.00
58275.00
55995.00
(-) Acc. Depreciation
.00
13499.00
.00
8707.00
5729.00
Net Block
76823.00
50542.00
51772.00
49568.00
50266.00
Capital Work in Progress
.00
24141.00
10443.00
3392.00
3027.00
Investments
12458.00
5999.00
5397.00
4878.00
5050.00
Inventories
10692.00
9623.00
10815.00
10082.00
9270.00
Sundry Debtors
3333.00
3166.00
6770.00
4692.00
3948.00
Cash and Bank
11746.00
11401.00
5813.00
601.00
1027.00
Loans and Advances
18180.00
17170.00
16415.00
12338.00
8371.00
Total Current Assets
43951.00
41360.00
39813.00
27713.00
22616.00
Current Liabilities
44423.00
37234.00
39207.00
25695.00
23422.00
Provisions
996.00
386.00
288.00
226.00
206.00
Total Current Liabilities
45419.00
37620.00
39495.00
25921.00
23628.00
NET CURRENT ASSETS
-1468.00
3740.00
318.00
1792.00
-1012.00
Misc. Expenses
.00
.00
.00
.00
.00
TOTAL ASSETS
87813.00
84422.00
67930.00
59630.00
57331.00
TREND ANALYSIS
Trend analysis is also an important tool analysis and interpretation of Financial Statement. Trend means
tendency in general term. This method of analysis is immensely helpful in making comparative study of
financial statement for several years. The trend analysis of business operations and other financial data
may be done by these three ways i.e. Trend Percentage, Trend Ratio and Graphic Presentation. Here I
have use the Trend Percentage method for analysis.
Value of Net Sales of JSW Steel Ltd. For the five years are as follows:
Year (31st March) 2021 2020 2019 2018 2017
Net sales (in ₨) 7,07,27,000 6,42,62,000 7,71,87,000 6,49,75,000 5,22,90,000
Base year: 2018
TREND PERCENTAGE
31
st
March
Sales(₨)
Increase/Decrease
in Comparison to
2019
Increase or decrease in % in comparison to
2019(Increase/Decrease) ×100
Sales for the base year
2021
70,727,000
+5,752,000
+8.852%
2020
64,262,000
-7,130,000
-10.973%
2019
77,187,000
+12,212,000
+18.794%
2018
64,975,000
……
……
2017
52,290,000
-12,685,000
-19.522%
By this analysis we are here able to see the clear comparison between the sales of various years. As in
year 2021 sales of JSW Steel Ltd. has increased by 8.85% ,In the year 2020 sales has been decline by
10.97% ,In 2019 sales has been increased by 18.79% which is the highest increment among these five
years and on year 2017 we can see that sales has been decline by 19.52%.
COMPARATIVE FINANCIAL STATEMENTS ANALYSIS
Comparative financial statements are statements of the financial position of a business so designed as to
provide time prospective to the consideration of various elements of financial position embodied in such
statements. Such a statements spot-light trends and establishes relationship between items that appear on
the same row of a comparative financial statement.
Advantages
1. Easy Comparison: - In comparative statement figures of two or more periods are placed side by
side, hence the comparison of various item becomes easy.
2. Indicate Trend of Progress:- As the comparative statement show sales, cost of goods sold ,gross
profit ,net profit and the values of different assets and liabilities in a particular form therefore it
becomes easier to evaluate .
Purpose of Comparative Financial Statements
The main purpose of preparing comparative statements is to get insight into the reasons for changes in
financial position and operating results of a business Enterprise.
1. The comparative statements are prepared to know the changes in financial position.
2. The comparative statements help us to develop and know the trend.
3. To study the effects of changes on profit and loss or assets. Liabilities and capital.
Types of Comparative Statements
(a) Comparative Income Statement and
(b) Comparative Balance Sheet.
(a) Comparative Income Statement: -
Income Statement or Profit and loss Statement is traditionally known as Profit and Loss Account.
The statement of profit & Loss is a summary of the results of operations of business transacted
during a definite period. It indicates the profit and loss after tax.
Hence, Comparative Profit & Loss Statement for more than one period is prepared to enable the
analyst to have definite knowledge about the progress of the business.
The analysis and interpretation involves increase and decrease in sales should be compared with
the increase and decrease in cost of goods sold. Next to study the operating profits, and the
increase and decrease in net profit is calculated that will give an idea about the overall
profitability of the concern.
(b) Comparative Balance sheet:-
In the comparative Balance sheets, Balance Sheets prepared at two different dates ,the items and
data are presented in such a way that the changes in each items between two dates are easily
found and determined. Advantages of comparative Balance sheet is that it gives balance of
accounts at different dates, the changes in such balances between the two different dates are
also determined, next is the comparative balance sheet not only throw light on the changes in
the book values of the assets and liabilities but indicates trends visible in them over a period of
the time.
JSW STEEL LTD.
COMPARATIVE INCOME STATEMENT
(For the year ended 31
st
March, 2019 and 2020)
Under this comparative Income statement, we have drawn 5 columns for better understanding let us named
them as column A, B, C, D, and E. In Column A we have written particulars. On column B amount of
2019, on column C amount from the year 2020. On Column D Absolute change has been shown which is
calculated by (C-B), and on column E proportional changes has been shown by calculating as D/B×100.
(a) Gross Profit: - We can clearly see that gross profit is more in 2019 as compare to 2020 and further
we saw that there is a change of 16.80%.
(b) Total operating expenses: - Absolute change by 437cr. Under this we saw that in year 2020
company has occurred more administrative expenses than 2019.
(c) Net profit after Tax:- As the expenses were more in 2020 this put absolute effect on net profit and
net profit after tax were more in 2019 by 16.42%.
Particulars
2019(₨)
2020(₨)
Absolute
change(₨)
Proportional
Change (%)
Net Sales
77187
64262
12925
16.74
Less:- Cost of goods sold
591.63
541.86
49.77
8.41
Gross Profit(a)
76595.37
63720.14
12875.23
16.80
Operating Expenses:
Administrative Expenses
7715.00
8152.00
437.00
5.66
Total operating Expenses(b)
7715.00
8152.00
437.00
5.66
Operating profit(a-b)
68880.37
55568.14
13312.23
19.32
Less:- Tax
3586.00
999.00
2587.00
72.14
Net profit after Tax(c)
65294.37
54569.14
10725.23
16.42
COMPARATIVE BALANCE SHEET
(as on 31
st
march, 2019 and 2020)
Particulars
Equity and Liabilities
2019
2020
Absolute
change
Percentage
1.Shareholders funds
24682
27720
3038
12.30
2.Non-current Liabilities
32806
46060
13258
40.41
3.Current Liabilities
39495
37620
1875
4.74
Total
96983
111400
14417
14.86
Assets
1.Non-current Assets
51772
64041
12269
23.69
2.Long-term Loans and Advances
16415
17170
755
4.59
3.Current Investments
5397
5999
602
11.15
4.Inventories
10815
9623
1192
11.02
5.Sundry Debtors
6770
3166
3604
53.23
7.cash and cash equivalents
5813
11401
5588
96.12
Total
96983
111400
14417
14.86
• Short-term Financial Position :
The working capital has increased from ₨. 319 to ₨. 3740 the previous current ratio was 0.72
whereas present current ratio is 0.80.However, the following inventories, sundry Debtors, cash
and cash equivalents have increased or decreased by 1192,3604,5588. Respectively non- current
Liabilities decreased by 1875.
CONCLUSION
Here, I conclude that with the help of Trend Analysis and Comparative financial statements analysis I
came to an end that in the Year 2020 during the time of Pandemic and Lockdown Company has gone
through big loss by 10.973% by considering the base year of 2018.But in spite of that company has
recovered by 8.85% within a Year. This project helped me to know the company financial position in a
better way by comparing.
SOURCES:-
• https://en.wikipedia.org/wiki/JSW_Steel_Ltd
• https://economictimes.indiatimes.com/jsw-steel-ltd/stocks/companyid-8352.cms
• https://www.moneycontrol.com/india/stockpricequote/steel-large/jswsteel/JSW01
• https://www.jswsteel.in/