tata vs jsl

8/13/2019 tata vs jsl

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INTRODUCTION

Financialstatementsarerecordsthatprovideanindicationoftheorganization sfinancialstatus.

Itquantitatively

describesthefinancialhealthofthecompany.Ithelpsintheevaluationofcompany sprospectsandrisksforthepurposeofmakingbusinessdecisions.Theobjectiveof

financialstatementsistoprovideinformationabout

thefinancialposition,performanceandchangesinfinancialpositionofanenterprisethatisusefultoawidera

ngeofusersinmakingeconomic decisions.Financial statements should be understandable,

relevant,reliable and

comparable.Theygiveanaccuratepictureofacompanysconditionandoperatingresultsina

condensedform.Reportedassets,liabilitiesandequityaredirectlyrelatedtoanorganization's

financialpositionwhereasreportedincomeandexpensesaredirectly relatedtoanorganization's

financialperformance.Analysisandinterpretationoffinancialstatementshelpsindetermining

theliquidityposition,longtermsolvency,financial viability,profitabilityandsoundnessofa

firm.Therearefourbasictypesoffinancialstatements:balancesheet,incomestatements,cash-

flowstatements,andstatements ofretainedearnings.

Miningindustriesarecapitalintensive.Hencealotcapitalisinvestedinit. Unfortunatelyvery

limitedworkhasbeendoneonanalysisandinterpretationoffinancialstatementsofIndianforminingcompa

nies.Anattempthasbeencarriedoutinthisprojecttoanalyzeandinterpretthe financialstatements of

fivecoal andnon-coal miningcompanies.

OBJECTIVES

To understand, analyze and interpret the basic concept of financial statements of different mining

companies.

Interpretation of financial ratios and their significance.


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FINANCIAL

STATEMENTS

Financial statements (orfinancialreports)are formal records of the financial activities of a

business,person, orotherentity.

Financialstatementsprovideanoverviewofabusinessorperson'sfinancialconditioninbothshort

andlongterm.Alltherelevantfinancialinformationofabusiness enterprise,presented

inastructuredmannerandinaformeasytounderstandiscalledthefinancialstatements.There

arefourbasic financialstatements:

1.Balancesheet:It is alsoreferred to asstatement offinancialpositionorcondition,reportsona

company'sassets, liabilities,andOwnershipequityasofagivenpointintime.

2.Incomestatement:ItisalsoreferredtoasProfitandLossstatement(or"P&L"),reportsona

company'sincome,expenses,andprofitsoveraperiodoftime.Profit&Lossaccountprovideinfo

rmationontheoperation oftheenterprise.Theseincludesaleandthevariousexpenses

incurredduringtheprocessingstate.

3.StatementofRetainedEarnings:Itexplainsthechangesinacompany'sretainedearningsover

thereportingperiod.

4.Cash Flow Statement: It reports on a company's cash flow activities, particularly

itsoperating, investingandfinancingactivities.


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Industry overview: Indian steel sector

India has emerged as the fourth largest steel producing nation in the world, as per the recent figures

release by World Steel Association in April 2011. In 2010, India was the 5th largest producer, after

China, Japan, USA and Russia had recorded a growth of 11.3% in steel production as compared to

2009. Overall domestic crude steel production grew at a compounded annual growth rate of 8.4%

during 2005-06 to 2009-10. The Indian steel industry accounted for around 5% of the worlds total

production in 2010.

Total crude steel production in India for 2010-11 was around 69 million tonnes and its expected

that the crude steel production in capacity in the country will increase to nearly 110 million tonne

by 2012-13. Further, if the proposed expansion plans are implemented as per schedule, India may

become the second largest crude steel producer in the world by 2015-16.

The demand for steel in the country is currently growing at the rate of over 8% and it is expectedthat the demand would grow over by 10% in the next five years. However, the steel intensity in the

country remains well below the world levels. Our per capita consumption of steel is around 110

pounds as compared to 330 Pounds for the global average. This indicates that there is a lot of

potential for increasing the steel consumption in India.

Immense growth potential in Indian Steel Sector

Domestic crude steel production grew at a compounded annual growth rate of 8.4% in the last fewyears.

Crude steel production capacity of the country is projected to be around 110 million tonne by 2012-13.

222 Memorandum of Understandings (MOU) have been signed with various states for plannedcapacity of around 276 million tonnes by 2019-20.

Investments at stake are to the tune of $187 billion in the Steel sector. Increase in the demand of steel in India is expected to be 14% against the global average of 5-6%

due to its strong domestic economy, massive infrastructure needs and expansion of industrial

production.

Demand of steel in the major industries like infrastructure, construction, housing, automotive, steeltubes and pipes, consumer durables, packaging and ground transportation.

Target for $ 1 trillion of investments in infrastructure during the 12th Five Year Plan. Infrastructure projects (like Golden Quadrilateral and Dedicated Freight Corridor) will give boost

to the demand in the steel sector in near future.

Projected New Greenfield & up-gradation of existing Airport shall keep the momentum up. Increased demand of specialized steel in hi-tech engineering industries such as power generation,

automotive petrochemicals, fertilizers etc.


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Table: Profit & Loss Statement of Jindal Stainless Ltd.

March-2012

(Rs in millions)March-2011


(Rs in millions)

Sales 76,778.30 53,681.40 35,230.80

OtherIncome 1,994.60 573.10 360.80

TotalIncome 78,772.90 54,254.50 35,591.60

RawMaterialCost

34,194.20 17,274.00 10,685.00

Excise 7,559.80 7,634.90 3,967.10

OtherExpenses

8,645.70 5,813.40 6,480.60

OperatingProfit

26,378.60 22,959.10 14,098.10

InterestName 2,678.90 2,430.20 1,731.90

GrossProfit 23,699.70 20,528.90 12,366.20

Depreciation 4,330.30 4,515.10 3,364.70

ProfitBef.

Tax21,362.00 16,584.20 9,359.60

Tax 4,654.00 2,655.50 2,418.50

Net Profit 16,708.00 13,928.70 6,941.10

OtherNon-

Recurring

Income

-1,343.20 -1,559.10 88.80

ReportedProfit

15,364.80 12,369.60 7,029.90

EquityDividend

853.30 620.20 554.30


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Ratio Analysis for 2012

Table: Analysis of Financial Ratios for 2012

Sl.No.

Ratios Particulars(Rsin millions)

Values Remarks

01. Net Working Capital =

Current assets- Current liabilities

Current Assets=51892.80Current Liabilities=41116.40

10776.4 Liquidity position isgood.

02.Current Ratio =

Current Assets

Current Liabilities


1.26 It is not safe.

03.Acidtest or Quick ratio=

Quick Assets

Current Liabilities

Quick Assets=39793.2Current Liabilities=41116.40

0.96 It is safe.

04.Debt-EquityRatio=

Long term debt

Shareho

lders Equ

ity

Total debt=49626.5Shareholder Equity=54153.20

0.91 It is good.

05.Interest Coverage=

Operating Profit

Interest

Operating Profit=26378.60Interest=2678.90


06.Operating Profit margin=

Operating Profit*100

Sales

Operating Profit=26378.60Sales

=76778.30

34% It is safe.


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Sl.No

Ratios Particulars(Rs in millions)

Values Remarks

07. Gross Profit margin=

Gross Profit*100

Sales

Gross Profit

=23699.70Sales=76778.30

30.86% It is good.

08.Net Profit margin=

Net Profit*100

Sales

Net Profit=15364.80Sales=76778.30

20.01% It is not desirable.

09.Return on Assets =


Average Assets

Operating Profit=26378.60Average Assets=132045.9

19.97% It is not satisfactory

10.Return on Investments=

Net Profitbefore Tax*100

NetWorth

Profit Before Tax=21362Net Worth=54153.20

39.44%It is satisfactory

11. Return on Net Worth=

Net Profit*100

Average NetWorth

Net profit=16,708.00Average Net Worth=45858.5

36.4% It is satisfactory


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Sl.No


Values Remarks

12.Return on Capital Employed=


Average Capital Employed

Operating Profit=26378.60Avg.CapitalEmployed=152228.9

17.32% It is not good.

13.Cost of Goods Sold Ratio=

Cost of Goods Sold

Sales

Cost of goodssold=34,194.20

Sales=76778.30

0.45 It is not satisfactory.

14.Operating Ratio=

CostofGoodssold+otherExpenses

Other Expenses=8,645.70


Sales

15. Fixed Assets turnover=

Fixed Assets

Sales

Fixed Assets=92973.1Sales=76778.30

0.82 It is good.


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Ratio Analys is for 2011


Sl.No


Values Remarks


Current assets-Current liabilities

Current Assets=32,995.70Current Liabilities=21,154.80

11840.9 Liquidity positionis good.

02.Current Ratio =

Current Assets

Current Liabilities


1.5 It is not safe.

03.Acidtest or Quickratio=

QuickAssets

CurrentLiabilities

Quick Assets=23190.1Current Liabilities=21,154.80

1.0 It is safe.


Long termdebt

Shareho

lders Equ

ity

Total debt=38633.5Shareholder Equity=37,563.80

1.0 It is good.


OperatingProfit

Interest

Operating Profit=22,959.10Interest=2,430.20


06.Operating Profi tmargin=


Sales

Operating Profit=22,959.10Sales

=53,681.40

42% It is safe.


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Sl.No


Values Remarks


Gross Profit*100

Sales

Gross Profit=20,528.90Sales

=53,681.40

38.24% It is good.


Net Profit*100/

Sales

Net Profit=12369.60Sales=53,681.40



Operating Profit*100/Average Assets

Operating Profit=22,959.10

Average Assets=86643.35



Net Profitbefore Tax*100/

NetWorth

Profit Before Tax=16584.20Net Worth=37563.80


11. Returnon NetWorth=

Net Profit *100/

Average Net worth

Net profit

=13928.70Average Net Worth=31265.55



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Sl.No


Values Remarks

12.ReturnonCapitalEmployed=

OperatingProfit*100/

Average CapitalEmployed

Operating Profit=22,959.10Avg.CapitalEmployed=105197.7

21.8% It is not good

13.Costof GoodsSoldRatio=

CostofGoodsSold

Sales


Sales=53,681.40


14.Operating Ratio=

CostofGoodssold+otherExpenses

Other Expenses=5813.40


Sales

15. Fixed Assets turnover=

Fixed Assets

Sales

Fixed Assets=64325Sales=53,681.40

0.83 It is good.


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Ratio Analysis for2010


Sl.No


Values Remarks





02.Current Ratio =

Current Assets

Current Liabilities



03.AcidtestorQuickratio=

QuickAssets

CurrentLiabilities


0.72It is not satisfactory.


Longtermdebt

Shareho

ldersEqu

ity

Totaldebt=35077.2ShareholderEquity=24,967.30

1.40 It is good.

05.InterestCoverage=

Operating Profit

Interest

Operating Profit=14,098.10Interest

=1,731.90


06.Operating Profitmargin=

OperatingProfit*100

Sales

OperatingProfit=14,098.10Sales

=35,230.80

40% It is satisfactory.


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Sl.No


Values Remarks


GrossProfit*100

Sales

Gross Profit

=12,366.20Sales=35,230.80

35% It is satisfactory


NetProfit*100

Sales

Net Profit=7,029.90Sales=35,230.80

19.9% It is not satisfactory.



Average Assets

Operating Profit=14,098.10Average Assets=66821.95



NetProfitbeforeTax*100

NetWorth

Profit BeforeTax=9,359.60NetWorth=24,967.30

37.48% It is safe.

11. Returnon NetWorth=

NetProfit*100

Average Networth

Net profit=6,941.10Average Net Worth=21707.2

31.9% It is good.


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Sl.No


Values Remarks

12.Returnon Capital Employed=

OperatingProfit*100


OperatingProfit=14,098.10Avg.CapitalEmployed=80691.15

17.47% It is not safe.

13.Costof GoodsSoldRatio=

Cost of Goods Sold

sales


Sales=35,230.80


14.Operating Ratio=

Cost of Goods sold+other ExpensesOther Expenses=6,480.60

0.48 It is not satisfactory

Sales

15.

FixedAssets turnover=

Fixed assets

sales

Fixed Assets

=57949.4Sales=35,230.80

0.61 It is not good.


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Summary for Balance Sheet and Profit&Loss Statement

Table: Summaryof BalanceSheet

2010(Rs in millions)



Remarks

Current Assets 18016.60 32995.7 51892.80Current assetPosition hasincreased.Liquidity positionis very good.

Fixed Assets 57949.4 64325 92973.1Fixed Assets haveIncreased due toincrease in grossblock.

CurrentLiabilities

3854.80 5819.40 9858.10Current LiabilitiesHave increasedmarginally.

Long termLiabilities

35077.2 38633.5 49626.5Debts haveIncreased duetomore investment.

Table: Summary of Profit&Loss Statement




Remarks

Sales 35,230.80 53,681.40 76,778.30 Sales position hasdoubled.

Raw Material Cost 10,685.00 17,274.00 34,194.20Purchase of rawMaterial hasincreased.

Operating Profit 14,098.10 22,959.10 26,378.60 Operating profithas increased.

Profit Bef.Tax(PBT)

9,359.60 16,584.20 21,362.00 PBT hasincreased.

Netprofit 6,941.10 13,928.70 16,708.00Net profit hasincreased140.7%


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Tata Steel

Table: Balance Sheet of TataSteel as at 31stmar-2012

LiabilitiesMarch-2012



(Rs in millions)

Share Capital 62,034.50 62,033.00 7,277.30

Reserves & Surplus 235,011.50 210,974.30 133,684.20

Net Worth(1) 297,046.00 273,007.30 140,961.50

Secured Loans(2) 39,130.50 35,205.80 37,589.20

Unsecured Loans(3) 230,331.30 145,011.10 58,864.10

TotalLiabilities(1+2+3) 566,507.80 453,224.20 237,414.80

Assets

March-2012 March-2011 March-2010

Gross Block 200,570.10 164,795.90 160,294.90

(-)Acc.Depreciation 90,624.70 82,234.80 74,863.70

Net Block (A) 109,945.40 82,561.10 85,431.20

Capital WorkinPrgs. (B)

34,876.80 43,674.50 24,974.40

Investments(C) 423,717.80 41,031.90 61,061.80

Inventories 34,804.70 26,049.80 23,329.80

Sundry Debtors 6,359.80 5,434.80 6,316.30

Cash And Bank 15,906.00 4,650.40 76,813.50

Loans And Advances 58,846.10 345,828.40 40,259.50

(i) 115,916.60 381,963.40 146,719.10

Current Liabilities 89,657.60 68,422.60 63,492.40

Provisions 29,341.90 29,135.20 19,304.60

(ii) 118,999.50 97,557.80 82,797.00

Net Curr. Assets (i -ii)

(D)-3,082.90 284,405.60 63,922.10

Misc. Expenses(E) 1,050.70 1,551.10 2,025.30

Total Assets(A+B+C+D+E)

566,507.80 453,224.20 237,414.80


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Table: Profit&Loss Statement of Tata Steel

March-2012

(Rsin millions)

March-2011

(Rsin millions)

March-2010

(Rsin millions)

Sales 243,483.20 196,544.10 174,526.60

Other Income 3,053.60 3,472.80 4,851.40

Total Income 246,536.80 200,016.90 179,378.00

Raw Material Cost 82,794.40 60,248.00 56,799.50

Excise 24,952.10 25,370.20 23,041.80

Other Expenses 43,972.30 28,480.50 25,547.80

Operating Profit 91,764.40 82,445.40 69,137.50

Interest Name 14,895.00 9,290.30 2,512.50

Gross Profit76,869.40

73,155.10 66,625.00

Depreciation 9,734.00 8,346.10 8,192.90

Profit Bef.Tax 70,189.00 68,281.80 63,283.50

Tax 21,148.70 23,802.80 20,404.70

Net Profit 49,040.30 44,479.00 42,878.80

Other Non-

Recurring Income

2,977.10 2,391.30 -657.30

Reported Profit52,017.40

46,870.30 42,221.50

Equity Dividend11,689.50

11,689.30 9,439.10


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Ratio Analysis for 2012

Table Analysis of Financial Ratios for 2012

Sl.No.


Values Remarks


Current assets- Current liabilities


-3082.9 Liquidity available isless.

02.Current Ratio =

CurrentAssets

CurrentLiabilities



03.Acidtest or Quick ratio=

QuickAssets

CurrentLiabilities




Longterm debt

Shareho

lders Equ

ity


0.91 It is good.


Operating Profit

Interest


=14,895.00




Sales


=243,483.20

37% It is good.


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Sl.No


Values Remarks




Operating Profit=91,764.40Avg.CapitalEmployed=725122.4

12.65%It is not good.

13.Cost of Goods Sold Ratio=

Cost of Goods Sold

Sales


Sales=243,483.20


14.Operating Ratio=

Cost of Goods sold+other ExpensesOther Expenses=43,972.30


Sales

15.

Fixed Assets turnover=

Fixed assets

Sales

Fixed Assets

=568540Sales=243,483.20

0.42 It is satisfactory


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Sl.No.


Values Remarks





02.Current Ratio =

Current Assets

Current Liabilities


3.92 It is safe

03.Acid testor Quick ratio=

Quick Assets

Current Liabilities

Quick Assets=355913.6Current Liabilities=97557.80

3.64 It is satisfactory


Longterm debt

Shareho

lder

s Equity

Total debt=180216.9Shareholder Equity=273007.30

0.66It is not safe


OperatingProfit

Interest

Operating Profit=82445.40Interest=9290.30




Sales

Operating Profit=82445.40Sales

=196544.10

41% It is satisfactory


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Sl.No.


Values Remarks


Gross Profit*100

Sales

Gross Profit=73155.10Sales=196544.10

37.22% It is good.


Net Profit * 100

Sales

Net Profit=46870.30Sales=196544.10




Average Assets

Operating Profit=82445.40Average Assets=433708.7

19% It is not safe.


Profitbefore Tax*100

Networth

Profit BeforeTax=68281.80Net Worth

=273007.30


11. Return on NetWorth=

Net Profit*100

Average Net worth

Net profit=44479Average Net Worth=206984.4



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Sl.No.


Values Remarks




Operating Profit=82445.40Avg.CapitalEmployed=523886.1

15.73% It is not safe

13.Costof Goods Sold Ratio=

Cost of Goods Sold

Sales

Cost of goodssold=60248

Sales=196544.10


14.Operating Ratio=

Cost of Goods sold+ otherExpenses

Other Expenses=28480.50 0.45 It is not satisfactory

Sales

15.

Fixed Assets turnover=

Fixed assetssales

Fixed Assets

=167267.5Sales=196544.10

1.17 It is not safe


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Sl.No.


Values Remarks





02.Current Ratio =

Current Assets

Current Liabilities



03.Acid test or Quick ratio=

Quick Assets

Current Liabilities


1.49 It is safe.

04.Debt-Equity Ratio=

Long term debt

Shareho

lder

s Equity




Operating Profit

Interest


=2,512.50



Operating Profit *100

Sales


=174,526.60

39.6% It is good.


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Sl.No.


Values Remarks


Gross Profit *100

Sales

Gross Profit=66,625.00Sales

=174,526.60

38.17% It is satisfactory.


Net Profit*100

Sales

Net Profit=42,221.50Sales=174,526.60


09.Returnon Assets =

Operating ProfitAverage Assets

Operating Profit=69,137.50

Average Assets=253753.3



Profit Before Tax*100

NetWorth

Profit Before Tax=63,283.50Net Worth=140,961.50

44.89% It is safe.

11. Return on Net Worth=

Net Profit * 100

Average Net worth

Net profit

=42,878.80Average Net Worth=119257.25

35.95% It is good.


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FINDINGS

Comparison of Current ratio of Tata Steel and

Jindal Stainless Ltd. from 2007-12

Table: Comparison of Current

ratio

JSL TATASTEEL

REMARKS

Dec2007-08 1.34 0.71JSL has aBetter ratio

Dec2008-09 1.26 0.72

JSL has a

Better ratio

Dec2009-10 1.1 1.77Tata Steel has aBetter ratio

Dec2010-11 1.5 3.92TATA STEEL has abetter ratio

Dec2011-12 1.26 0.97JSL has a betterRatio

From the above table, it can be concluded that current ratio of JSL Ltd. Was always more

than 1 from 2007-12. Short term liquidity of Jindal Stainless Ltd. Was good as current

ratio was more than 1. Liquidity position of Tata steel was not satisfactory as the ratio

varied from 0.71 to 0.97 in five years.

In the period of 5 years JSL has improved its liquidity position compared to TATA

STEEL, while a position of Tata Steel has come down. Current ratio of Tata Steel

decreased steeply from 2007 -09 due toitsdecrease in current assets position.


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Comparison of DebtEquity ratio JSL and TATA STEEL

Companies from 2007-12

Table: Comparison of DebtEquity ratio

JSL TATASTEEL

Remarks

Dec2007-08 1.13 0.38 JSL has a better ratio



Dec2010-11 1 0.66 JSL has a better ratio

Dec2011-12 0.91 0.91JSL & Tata Steel has aBetter ratio

From table it can be seen that Debt position of JSL was satisfactory as the ratio varied from

1.13 to 0.91 from 2007-12 because of increasing investment. However D-E ratio of Tata Steel

remained less than 1 from 2007-12 as their debts were paid off. JSL has the highest debt equity

ratio of 1.48 and 1.40 from 2008-09 compared to TATA STEEL.Tata Steel has improved its ratio from

0.38 to 0.91 in five years.Though owners share in the company has decreased but more outsiders have

started investing in the company and that has lead to desirable ratio.


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Comparison of Net Profit margin of JSL and TATA STEEL companies from 2007-12

Table: Comparison of Net Profit

Margin

JSL TATASTEEL

REMARKS

Dec2007-08 22.88% 23.97%TATA STEEL has abetter net profitmargin.

Dec2008-09 22.33% 23.17% TATA STEEL has abetter net profitmargin.

Dec2009-10 19.9% 24.19%

TATA STEEL has a

better netprofit margin.

Dec, 2010-11 23.04% 23.8%TATA STEEL has abetter netprofit margin.

Dec, 2011-12 20.01% 21.36% TATA STEEL has abetter net profitmargin.

From Table it can be seen that TATA STEEL has the highest profit margin in all the five

years which is because of their increase in sales. Profit Margin of GMDC came down from

28.04% to 23.6% from 2007 -12 . Though sales of the company increased , their profit

percentage decreased from 2007-12 due to their decrease in net profit.


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Comparison of ROI of Different Companies

from 2007-12

Table : Comparison of ROI

JSL Tata Steel Remarks

Dec2007-08 52.31% 74.57%Tata steel has abetter ratio

Dec2008-09 39.64% 53.28%TATA STEELhas a Betterratio

Dec2009-10 37.48% 44.89%TATA STEELhas a better ratio

Dec2010-11 44.14% 25.01% JSL has aBetter ratio

Dec2011-12 39.44% 23.62%JSL has aBetter ratio

From the above table it can be seen that ROI of Tata Steel was highest in 2004-05 with 74.57%

and then it declined to 23.62%. Similarly ROI of JSPL decreased from 52.31 % to 39.41 % due to

significant increase in its expenses.


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CONCLUSION

Analysis and interpretation of financial statements is an important tool in assessing companys

performance. It reveals the strengths and weaknesses of a firm. It helps the clients to decide in

which firm the risk is less or in which one they should invest so that maximum benefit can be

earned. It is known that investing in any company involves also to risk.So before putting up money

in any company one must have thorough knowledge about its past records and performances .Based

on thedata available the trend of the company canbepredicted in near future.

This project mainly focuses on the basics of different types of financial statements. Balance Sheet

and Profit & Loss statements of different coal and non coal mining companies have been studied.

Short term liquidity position of JSL in 2010 was good. However, current ratio, quick ratio, net profit

margin, return on assets, return on investments and return on capital employed were unsatisfactory.The ratios that are found to be desirable are debt-equity ratio, operating profit margin and gross

profit margin.

In 2011-12, networking capital available with the company was adequate. The ratios that were

found to be satisfactory are quick ratio, debt-equity ratio, return on investments, return on net worth,

operating profit margin and gross profit margin. Current ratio, return on capital employed, return on

assets and net profit margin of the company were unacceptable.

For Tata Steel in 2010, networking capital, quick ratio, return on investments, return on net worth,

operating profit margin and gross profit margin of the company were satisfactory. However, debt-

equity ratio, current ratio, net profit margin, return on capital employed and

Return on assets were undesirable.

In 2011, only companys current ratio improved due to substantial increase in current assets position.

In 2012, networking capital available was inadequate. Companys debt-equity ratio, operating profit

margin and gross profit margin were desirable and current ratio, return on investments, return on

net worth, return on capital employed and return on assets were found to be unsatisfactory.

In this project, comparison of different ratios viz. Current ratio, debt-equity ratio, net profit

margin and return on investment of all the companies from 2007-12 has been done.

It was observed Current ratio of Jindal Stainless Ltd. Was satisfactory as it remained more than

1 for all the five years. Liquidity position of Tata steel was not satisfactory as the ratio varied


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marginally from 0.71 to 0.97 in five years.

Debt position of JSL was satisfactory as the ratio varied from 1.13 to 0.91 from 2007-12.

However DE ratio of Tata Steel was less than 1 in five years as their debts were paid off.

Though sales of the company JSL and Tata Steel increased, their profit percentage decreasedfrom 2007-12 due to their decrease in net profit.

ROI of Tata Steel was highest in 2007-08 with 74.57% and then it declined to 23.62%.Similarly ROI of JSL decreased from 52.31% to 39.44%.


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BIBLIOGRAPHY

Khan, M.Y. (1988). Financial Management, Tata Mc-Graw Hill , New Delhi,

1st

edition

Bhattacharya,

Asish..(2007).IntroductiontoFinancialStatementAnalysis,Elsevier,NewDelhi, 1st

edition

Wanless,R.M.(1983).FinanceForMineManagement,Chapman&HallLtd,NewYor

k, 1st edition

Khanna,O.P.(1999).IndustrialEngineeringAndmanagement,DhanpatRai,1st

edition,NewDelhi

Web References:

http://en.wikipedia.org/wiki/Financial_statements

http://en.wikipedia.org/wiki/Balance_sheethttp://en.wikiped

ia.org/wiki/Asset

http://en.wikipedia.org/wiki/Financial_statementhttp://en.wi

kipedia.org/wiki/Unsecured_loan

http://en.wikipedia.org/wiki/Income_statementhttp://en.wiki

pedia.org/wiki/Cash_flow_statement
http://en.wikipedia.org/wiki/Financial_statementshttp://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Financial_statementhttp://en.wikipedia.org/wiki/Unsecured_loanhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Cash_flow_statementhttp://en.wikipedia.org/wiki/Cash_flow_statementhttp://en.wikipedia.org/wiki/Cash_flow_statementhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Unsecured_loanhttp://en.wikipedia.org/wiki/Unsecured_loanhttp://en.wikipedia.org/wiki/Financial_statementhttp://en.wikipedia.org/wiki/Financial_statementhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Financial_statementshttp://en.wikipedia.org/wiki/Financial_statements

tata vs jsl

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