A PROJECT REPORT ON “COMPARATIVE ANALYSIS OF

FINANCIAL STATEMENT OF JUSCO WITH ITS

COMPETITORS”

A thesis submitted in partial fulfilment of the requirements

For the award of the degree of
BACHELOR’S IN BUSINESS ADMINISTRATION
BY
RITIKA SRIVASTAVA-BBA/40071/15
DEVYA SINHA-BBA/40079/15

DEPARTMENT OF BACHELOR’S OF BUSINESS

ADMINISTRATION
BIRLA INSTITUTE OF TECHNOLOGY, MESRA,
LALPUR EXTENSION CENTER-835215, RANCHI
2018
 CERTIFICATE OF APPROVAL

The fore going project report title “A project on COMPARATIVE

ANALYSIS OF FINANCIAL STATEMENT OF JUSCO WITH ITS
COMPETITORS’’, is hereby approved as a creditable study of topic and has
been presented in satisfactory manner to warrant its acceptance as prerequisite
to the degree for which it has been submitted.

It is understood that by this approval, the undersigned do not necessarily

endorse any conclusion drawn or opinion expressed therein, but approve the
project for the purpose for which it is submitted.

(Internal Examiner) (External Examiner)

 DECLARATION CERTIFICATE

This is to certify that the work presented in this thesis entitled “Comparative
Analysis Of Financial Statement Of JUSCO With Its Competitors Like
Reliance Power Ltd. And Tata Power Company Ltd.” in partial fulfilment
of the requirement for the award of Degree of Bachelor’s in Business
Administration of Birla Institute of Technology, Mesra, Ranchi is an authentic
work carried out under my supervision and guidance.

To the best of my knowledge, the content of this project does not form a basis
for the award of any previous degree to anyone else.

Date

Dr. A.K SINGH

Birla Institute of Technology

Mesra, Ranchi
 ACKNOWLEDGEMENT

We wish to express our sincere gratitude to our sir Dr. A.K.Singh who helped
us in completing this project report and corrected us as and when needed.

We thank them for providing us with the opportunity to work on the project of

“Comparative Analysis Of Financial Statement Of JUSCO With Its

Competitors” and guiding us throughout the journey.

We also wish to thank our institution Birla Institute of Technology, Mesra,

for providing us this opportunity and rendering help during the making of this
project report.

Last but not the least we would like to thank everyone who helped us and
provided information and guidance for our project work.
 CONTENTS

S.No. Particulars Page No.

1. Introduction 1

2. Literature Review 6

3. Research 16
Methodology
4. Data Analysis 17

5. Limitations 24

6. Conclusion 25

7. Bibliography 26
INTRODUCTI
ON
 INTRODUCTION

Comparative analysis of financial statement of Jusco with its competitors is

comparing one's business processes and performance metrics to industry bests
and best practices from other companies. Dimensions typically measured are
quality, time and cost. In the process of best practice Comparative analysing of
financial statement of Jusco with its competitor, management identifies the best
firms in their industry, or in another industry where similar processes exist, and
compares the results and processes of those studied (the "targets") to one's own
results and processes.

In the business world, companies use comparative analysis of financial

statement of Jusco with its competitor as a point of reference as well. But
instead of having physical benchmarks carved in stone, they use benchmark
reports as a way to compare themselves to others in the industry. Comparative
analysis of financial statement of Jusco with its competitors is the practice of a
business comparing key metrics of their operations to other similar companies.

Comparative analysis of financial statement of Jusco with its competitors occurs

across all types of companies, including private, public, non-profit, and for-
profit, as well as industries e.g., technology, education, and manufacturing.
Many companies have positions or offices in the company that are in charge of
Comparative analysis of financial statement of Jusco with its competitors. Some
of the positions include:

 Institutional researcher
 Information officer
 Data analyst
 Consultant
 Business analyst
 Market researcher

Companies use comparative analysis of financial statement of Jusco with its

competitors as a way to help become more competitive. By looking at how
other companies are doing, they can identify areas where they are
underperforming. Companies are also able to identify ways they can improve
their own operations without having to recreate the wheel. They are able to
accelerate the process of change because they have models from other
companies in their industry to help guide their changes.
Jamshedpur Utilities & Services Company (JUSCO)
Jusco is a wholly owned subsidiary of TATA STEEL, incorporated on the 25 th
august 2003 under the companies Act 1956, with the objective of providing
“Quality services for life”.
Maintaining townships and providing municipal services has been the role of
the government almost entirely throughout India. Jamshedpur is a significant
exception to this norm. Globally, this is a unique case of a private organization
taking up the role providing civil services to its employees and the community
at large, as a part of fulfilling its corporate social responsibility. The
competence gained over the last 90 years now forms the basis for Jusco.
JUSCO (the erstwhile town division, TATA STEEL) is the only EMS 14001
civil services provider in the country, which maintains India’s first
cosmopolitan planned city built in the 20th century. The area of operation is
spread over 14000 acres approximately, with the ability and infrastructure to
services a vast and varied customer base of 7 lakhs. Today Jamshedpur is being
recognized as a model town, not just in India but globally. Jamshedpur has been
selected as one of the cities for the global compact city pilot programme by the
United Nations, the only one to be selected in south-east Asia.

Reliance Power Ltd.

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group.
It was established to develop, construct and operate power projects in the Indian
and international markets. Reliance Infrastructure Limited, an Indian private
sector power utility company and the Anil Dhirubhai Ambani Group promote
Reliance Power.
The company is the sole distributor of electricity to consumers in the suburbs
of Mumbai. It also runs power generation, transmission and distribution
businesses in other parts of Maharashtra, Goa and Andhra Pradesh.
With its subsidiaries, it is developing 13 medium and large-sized power projects
with a combined planned installed capacity of 33,480 MW.
The company was incorporated in January 1995 as Bawana Power Private
Limited and changed its name to Reliance Delhi Power Private Limited in
February 1995. Its name was changed to Reliance Energy Generation Limited in
March 2004, and finally to Reliance Power Limited in July 2007.
The company website identifies project sites broadly to be located in western
India (12,220 MW), northern India (9,080 MW) and north eastern India (4,220
MW) and southern India (4,000 MW). They include six coal-fired projects
(14,620 MW) to be fuelled by reserves from captive mines and supplies from
India and abroad, two gas-fired projects (10,280 MW) to be fuelled primarily by
reserves from the(the "KG Basin") off the east coast of India, and
four hydroelectric projects (3,300 MW), three of them in Arunachal
Pradesh and one in Uttrakhand.

Reliance Power Limited is engaged in the business of generation of power. The

Company operates through two segments: Power generation and Associated
business activities. The Associated business activities segment includes project
management, supervision and support services for generation and allied
processes. The Company's projects under development include coal, gas, hydro,
wind and solar-based energy projects. It develops, constructs and operates
power projects both in India, as well as internationally. The Company on its
own and through its subsidiaries has a portfolio of power generation capacity,
both in operation, as well as capacity under development. It has approximately
6,000 megawatts (MW) of operational power generation assets. The projects
under development include over three coal-fired projects; one gas-fired project,
and approximately 10 hydroelectric projects. The Company's project portfolio
also includes 3,960 MW Sasan Ultra Mega Power Project in Madhya Pradesh.

Tata Power Company Ltd

Tata Power, basically known as Tata Electric, pioneered the generation of
electricity in India nine decades ago. The company started as Tata Hydroelectric
Power Supply Company in 1911, it got its new status with the amalgamation of
two entities that is, Tata Hydroelectric Power Supply Company and Andhra
Valley Power Supply Company in 1916. Today, it is the country's largest
private power utility, established as a licensee in Mumbai and with ambitious
expansion plans from being essentially Mumbai–centric to a major national
player, not only in the fields of Power but also in Energy and Broadband
Communication.

Tata Power commissioned India’s first power plant– the hydro–electric station–
in Khopoli (72 MW) in 1915, the second hydro station one in Bhivpuri (75
MW) in 1919 and the 3rd one in Bhira (300 MW) in 1922. With these three
hydro stations and the 1,350 MW thermal power station in Trombay, Mumbai; a
475 MW power station near Jamshedpur in Jharkhand and an 87 MW thermal
power plant in Belgaum, Tata Power is the largest integrated private power
company in India and is the most trustworthy power supplier to Mumbai.
The Tata Power Company Limited is India's largest private sector power utility
with an installed generation capacity of over 2785 MW. The company has
emerged as a pioneer in the Indian power sector, with a track record of
performance, customer care and sustained growth. Tata Power has a presence in
all the segments of the power sector that is generation (thermal, hydro, solar,
wind and liquid fuel), transmission and distribution

Recognised as India’s largest private sector power utility, with a reputation for
trustworthiness, built up over nearly nine decades, Tata Power surges ahead into
yet another year with plans of sustained growth, greater value to consumer and
reliable power supply.

Led by a powerful vision, Tata Power pioneered the generation of electricity in

India. It has now successfully served the Mumbai consumers for over ninety
years and has spread its footprints across the nation. Today, it is the country’s
largest private player in the sector. Apart from Mumbai and Delhi, the company
has generation capacities in Jojobera, Jharkhand and Karnataka.

Tata Power has an installed power generation capacity of above 2300 Mega
Watts, with the Mumbai power business, which has a unique mix of Thermal
and Hydro Power, generated at the Thermal Power Station, Trombay, and the
Hydro Electric Power Stations at Bhira, Bhivpuri and Khopoli, accounting for
1797 MW. Its diverse generation capability facilitates the company in
producing low cost energy, thereby giving its consumers a greater value for
money.

Among its many achievements that Tata Power can proudly boast of are the
installation and commissioning of India’s first 500 MW unit (at its Thermal
Power Generating Station, Trombay) the 150 MW Pumped Storage Unit at its
Hydro Generating Station, Bhira, and environmental control systems like the
Flue Gas Desulphurisation plant.
Tata Power has a first of its kind joint venture with Power Grid Corporation of
India for the 1200 km Tala Transmission Project.

Services offered by the company:

Design & Development– Strategic Electronics Division (SED)– SED

(Mumbai) was established in 1967 and is today a leading development
organization, having pioneered indigenous design and development of many hi–
 tech systems for Defence and Industry. The manufacturing facility was
established in 1982 and is situated in Bangalore.

Direct Marketing – Power Supply to Mumbai Consumers– The Company also

supplies power directly to such bulk consumers as Central and Western
Railways, Mumbai Port, refineries, textile mills, fertilizer factories, BARC,
Municipal Corporation water pumping plants and other major continuous
processes industries requiring uninterrupted power supply.

Power Projects & Related Services– Tata Power also extends its expertise for:
Setting up Independent Power Plants (IPP) Setting up Captive Power Plants
(CPP) Power Transmission and Distribution Projects Operation and
Maintenance Services (O&M Services)

Transmission & Distribution

 Transmission Business – Tata Power owns and operates 1200 circuit Kms of
high voltage (220 kV and 110 kV) Transmission Network.
 Distribution Business – Tata Power has a 935 km HT and LT cable
distribution network connecting 17 major receiving stations and over 85 sub–
stations in its Mumbai License area.

Subsidiary Companies associated with Tata Power:

 Af–Taab Investment Co. Ltd.
 Chemical Terminal Trombay Ltd.
 Powerlinks Transmission Ltd.
 Tata Power Trading Co. Ltd.
 Maithon Power Ltd.
 NELCO Ltd.
 Tatanet Services Ltd.
 Industrial Energy Ltd.
 Industrial Power Utility Ltd.
 Industrial Power Infrastructure Ltd.
 Coastal Gujarat Power Limited
LITERATURE
REVIEW
 Literature review

The Jamshedpur Utilities & Services Company (JUSCO) provides water and
sanitation services in Jamshedpur, a major industrial centre in east India that is
home to Tata steel. Until 2004, a division of TATA steel provided water to the
city’s residents which was further converted into an independent utilities
providing company named JUSCO. (www.tata.com)

Jamshedpur Utilities & Services Company is today India’s only comprehensive

urban infrastructure service provider. A Tata enterprise, its services focus on the
Tata group purpose “to improve the quality of life of the communities we
serve”.

Its services include water, power, infrastructure, public health and horticulture
services. Jusco works alongside civic bodies, large and small industries, local
government bodies and individuals to deliver value through sustainable
solutions.

JUSCO intends to rise to the challenge of meeting India’s need for

infrastructure development in a sustainable manner by anticipating and
addressing the country’s growth needs such that the ability of future generations
to meet their own needs is not compromised. (Wikipedia, 1970)

It has also incorporated a modern system to track & resolve customer

complaints called JUSCO SAHYOG KENDRA (JSK) with the single focus of
reducing time required for resolution of customer complaints and improving the
quality of services provided.

As a result of JUSCO’s dedication, efficiency and service quality improved

substantially over the following years.
JUSCO’s vision is to be preferred provider of water supply and other urban
services throughout India.
BROAD FUNCTION OF JUSCO
 Ensuring planned development of the city taking into consideration
requisite infrastructure and future growth.
 Providing and maintaining high quality of service level in respect of
water. (Annual report of JUSCO, 2017)

The entire township is divided into 3 zones:-

I. EASTERN ZONE
 CENTRAL WATER TOWER
 SAKCHI WATER TOWER

II. WESTERN ZONE

 KADMA
 SONARI

III. CENTRAL ZONE

 BURMAMINES
 TATANAGAR WATER TOWER
 SIDHGORA

It has departmental staff and maintenance staff, which handle the complaints.
The water and sewage work department undertake a cordial task of purifying
portable water for the residents of Jamshedpur as well as for the operational
needs of the power engineering department (work).This conforms to a very high
quality comparable to international standards. In order to carry out this function,
the management of raw water resources and routine analysis of water and
sewage are two supporting functions. To carry out its function there are seven
waters towers and eleven sewage treatment plants located in the different parts
of the city.

IV. PUBLIC HEALTH AND HORTICULTURE SERVICES

The department divides TISCO Township into zones called ‘depots’. There are
depots. Each depot is in turn divided into ‘muster places’ they are:

1. RAMDAS BHATTA HEALTH DEPOT

 Rani kudaar
  Kadma
 G & H town
 South park
 Bistupur Market

2. NORTHERN TOWN HEALTH DEPOT

 Northern Town East
 Northern Town West
 B.H.area (Dhatkidih)
 Farm area
 Sonari south
 Sonari North

3. KASIDIH HEALTH DEPOT

 Kasidih
 Bhalubasa
 L town
 Hume pipe Area
 Sakchi Market

4. BURMAMINES HEALTH DEPOT

 Burmamines East
 Burmamines West
 Manifit
 Golmuri

5. BARIDIH HEALTH DEPOT

 Agrico
 Sidhgora
 Baridih

6. TUBE DIVISION
 Environment Section/conservancy
 Epidemic and mosquito control

Horticulture department maintains the ecological and environmental balance of

steel city. It undertakes the beautification work of the city. It assists in keeping
the city evergreen and free from pollution. In order to achieve the goal, the
department ensures that a large number of evergreen and timber species of
economic value are planted,
Beside maintaining a large number of parks, traffic islands and also supplying
green inputs, viz. floral decoration and various social occasions as well as
important official function.

V. POWER BUSINESS DIVISION

Function-
 Maintenance of electrical installation of steel corporate.
 Maintenance of distribution network and maintenance of power supply to
premises.
 Providing power supply to private parties in its command area if
approved by administration.
 Providing temporary power supply for the function as and when required.
 Meter reading at points supply.

VI. EDUCATION
The department provides education from primary to +2 level to the employee
children of Tata Steel and JUSCO through 6 school and 1 inter college.
It also executes the process of granting scholarship to the students enrolled for
higher education in premier institution of various streams.

VII. LIAISON & ADINISTRATION

It takes care of complete administration viz. Travels etc, and liaison with
different external agencies viz. political personalities, govt, officials etc.

The legacy handed over to JUSCO

 Over 100 years of experience in municipal and civil services.

 “River to River” water and wastewater management for nine decades.
 India’s only city with an ISO 14001 certified EMS.
 Green cover highest among any urban centre in India 24.06%.
 Power availability at 99.8%
 Water quality matches the best international norms.
 98.8% of the children were immunized in Jamshedpur; national average is
63.3%.

Business Profile

JUSCO had opened its first overseas store in Malaysia in 1985. This was
operated by Jaya JUSCO Stores SDN. BHD., a company originally jointly
owned with Cold Storage (Malaysia) and three other local companies. It was the
first time that a Japanese company had entered into a significant joint venture in
the Malaysian retail industry. JUSCO assumed operational control of Jaya
JUSCO in 1988.
Since the latter part of the 1980s JUSCO's retail operations in Asia have grown
to include another Malaysian superstore, four in Hong Kong--including Hong
Kong's biggest store, opened in the Kornhill Complex in 1987--and five in
Thailand. In 1990 a chain of Mini Stop convenience stores was launched in
South Korea under an agreement with the Korean Miwon Group.
One of JUSCO's best-known European joint ventures, formed during the 1980s,
was its partnership with British fashion manufacturer and retailer Laura Ashley.
Laura Ashley was Japan's first store opened in Tokyo's Ginza district in 1986.
The appeal of the brand's "traditionally English" style to Japanese consumers
was so strong that by the end of 1990 there were 36 shops, two-thirds of them
existing within department stores such as Mitsukoshi, and there were plans to
open a further 11 stores in 1991. During 1990, JUSCO increased its share in
Laura Ashley Japan from 50% to 60%, giving it overall control, and also
announced the purchase of a 15% stake in Laura Ashley UK for 29.9 million, a
deal that rescued the British company from a heavily indebted state.
Some of the profiles of JUSCO are as follows:-

 WATER AND WASTEWATER MANAGEMENT

 POWER DISTRIBUTION
 CONSTRUCTION
 MUNICIPAL SOLID WASTE MANAGEMENT
  ENVIRONMENT
 ROADS AND INFRASTRUCTURE
 CIVIL & ELECTRICAL MAINTENANCE
 EDUCATION
 HOSPITALITY SERVICES
 HORTICULTIRE SERVICES
 FLEET MANAGEMENT

Departments

WATER AND WASTE WATER SERVICES

JUSCO provides comprehensive services in the supply of water to both

industrial and domestic customer .Jusco range covers operation & maintenance
of the entire water cycle from intake to treatment, conveyance and distribution.
Jusco integrates this service with capabilities such as asset management
activities, GIS, billing collection and non revenue water reduction programmes.
The company was formed in 2004 and JUSCO has since ventured beyond
Jamshedpur to create new facilities in water across the country apart from
modernizing and maintaining existing ones.

Services offered
 Operation and maintenance of water treatment plants sewage treatment
plants, distribution networks.
 Build new water treatment plant sewage treatment plant on EPC or
BOOT basis.
 Technical and management support to improve performance of the water
treatment plant, sewage treatment plants and distribution systems.
 Control of unaccounted for water (UFW) or non revenue water (NRW).
  Creation of 24 x 7 municipal water supply systems.
 GIS for asset management including updating of existing drawings.
 Customer support services including call centre facilities for prompt
handling of complaints

 Building & industrial construction – geared to provide EPC services as

well as exclusive construction solution for
residential/commercial/industrial/recreational requirements.
 Road construction & maintenance- facilitating economic growth.
Design & planning ENGINEERING & CONSTRUCTION

 JUSCO offers design, construction and turnkey services as well as

comprehensive EPC services; according to individual needs, it undertakes
end-to-end projects or provides stand alone solution in the areas of
consultancy-understanding and delivering the physical planning,
architectural and structural needs of modern townships.
 Township management – solution for India’s urban growth
&development.

POWER DISTRIBUTION

Jamshedpur operation –India’s first private power utilities company to manage

operation and distribution for the entire city since 1923.
Saraikela kharsawan operation- First district in the country where two utilities
have been allowed to build parallel network for distribution of power .

MUNICIPAL SOLI D WASTE & PUBLIC HEALTH

Solid waste management has become a major environmental issue in India. For
ensuring sustainable solution to this problem, MSW-Mgt& handling rules 2000
were enacted with obligatory requirements for improvement in MSW
management infrastructure in cities across the country. Taking an early
initiative, Jusco has put in place the expertise and skills to strategise, devise and
design the blueprint for excellent waste management for the city of Jamshedpur.

Jusco has been offering integrated solution to municipal waste management .the
services in municipal waste comprise of:
 Waste transfer-secondary collection and transportation.
 Transfer station management.
 Composting
 Engineered secured landfills.
 Landfill capping.
 Integrated waste recycling and reclamation
 Recycling of municipal and specialized waste.
The above project projects are taken on various aspects of project
management viz.EPC, Turnkey basis, BOOT, BOT, DBOOT,O&M etc.
JUSCO’s public health & horticulture services integrate environment
sanitation, disease prevention and control and horticulture. Together,
these services promote a healthy life for the citizens by ensuring that civic
needs do not stretch the environment and ensures one of the lowest
incidences of communicable diseases in India. In the last 5year, 5.15
million trees have been planted to maintain the ecological balance. The
company follows an integrated approach in the art & are at affordable
cost.
Services offered
 Environment sanitation
 Disease prevention and control
 Horticulture service
 Veterinary service

Extent and reach of services at Jamshedpur

 Area serviced: 64sq.km.
 Population: 7.00 lakh approx.
 Length of water mains : 635 km
  Length of sewer mains : 550km
 Avg. daily water consumption :160 MLD
 Power availability : 99.8%
 Electrical power consumption : 800unit / capita/year
 Length of roads : 700km
 Length of drains : 900km
 Company accommodation: 22000nos.

1. SAFETY

Jusco gives a great priority to safety .it commits itself to provide a safer work
place environment to its employees contractors & partners. The company
continually enhances safety and occupational health (SOH) performance in all
its activities, product and service through integration of SOH issue and planning
stages & developing structured SOH management framework.
The company’s fundamental belief is that all injuries and ill health can be
prevented. Towards this commitment, the company has following principles of
safety.

SAFETY PRINCIPLES

1. Safety is line management’s responsibility.

2. All injuries can be prevented.
3. Working safety shall be a condition of employment.
4. Employees including contractors, employees shall be trained to work safety.
5. No job will be carried out without accessing risk involved and preparation of
safe working procedures.

2. PROJECT ASSIGNMENT

As described in the previous pages, many projects are running under JUSCO.
Among these projects, a few are related to construction/maintenance works. As
we are pursuing B.Tech in civil engineering, so we assigned the “O & M
WASTE WATER NETWORK IN TOWN” Projects which are running through
in Jamshedpur city under the guidance of Mr. Nawal Kishore and his
colleagues.

3. WASTE WATER NETWORK

“Sewage” the liquid flowing through a sewer, has been defined as the spent
water of a community. It contains the wastes resulting from the uses of water
for domestic, commercial and industrial purpose and such ground or surface
water may enter the sewer.
Research
Methodology
 Research Methodology

Statement of the problem:

The basic problem of this particular research to be conducted is, to compare the
financial analysis of Jusco with its competitors. This research work is carried
out mainly to focus on companies and their financial position and this is
critically analysed with the help of ratio analysis.

Research Objective:

 To determine whether a company is performing particular value chain

activities efficiently.
 Understand the best practices in performing an activity.
 Assess if costs are in line with competitors.
 Learn how lower cost are achieved.
 Take action to improve cost competitiveness

Source of data collection

Secondary Data:
Secondary data is collected from existing data sources such as:
 Profit & Loss Statements
 Balance Sheets
 Corporate filings, such as annual reports of Jusco and its competitors like
Reliance Power Ltd. and Tata Power Company Lt
DATA
ANALYSIS
 DATA ANALYSIS

The current ratio is a liquidity ratio that measures a company's ability to

pay short-term and long-term obligations. To gauge this ability, the current ratio
considers the current total assets of a company (both liquid and illiquid) relative
to that company’s current total liabilities.

The formula for calculating a company’s current ratio, then, is:

Current Ratio = Current Assets / Current Liabilities

The current ratio is called “current” because, unlike some other liquidity ratios,
it incorporates all current assets and liabilities.

The current ratio is also known as the working capital ratio.

Particular Mar'16 Mar'15 Mar'14 Mar'13 Mar'12

Jusco 1.02 0.97 0.83 0.72 0.7
Reliance power
ltd 0.76 0.47 0.64 1.15 1.11
Tata power
company ltd 0.59 0.59 0.46 0.83 1.32

Current Ratio
Reliance JUSCO TATA
1.32
1.15 1.11
1.02 0.97
0.76 0.83 0.83
0.72 0.70
0.59 0.59 0.64
0.47 0.46

MAR'16 MAR'15 MAR'14 MAR'13 MAR'12

A current ratio of 1 or more means that current assets are more than current
liabilities and the company should not face any liquidity problem. A current
ratio below 1 means that current liabilities are more than current assets, which
may indicate liquidity problems. In general higher current ratio is better.
In case of JUSCO we observed that from 2012-2015 it reportedly had a ratio
below 1 which indicates that its current liabilities are more than current assets.
In case Reliance Power Ltd we observed better current ratio of more than 1 in
2012-2013 but with time its financial position declined due to more liabilities.
In case Tata Power Ltd we observed better current ratio in the year 2012 but
with time its financial position declined due to more liabilities
It shows that current ratio efficiency of Reliance Power Ltd (1.15) is lower than
Tata power company ltd (1.32).

So rank of current ratio efficiency of power company can be given as Jusco,

Reliance Power Ltd, Tata Power Company Ltd.

Tangible net worth

Tangible net worth is most commonly a calculation of the net worth of a

company that excludes any value derived from intangible assets such
as copyrights, patents and intellectual property. Tangible net worth is a simple
calculation of a company's total tangible assets minus the company's total
liabilities. It can also be calculated for individuals, using the same formula of
total tangible assets minus total debt liabilities.

Tangible net worth = Total assets – Liabilities- Intangible assests

Particular Mar'16 Mar'15 Mar'14 Mar'13 Mar'12

Jusco 0.22 0.39 0.28 0.33 0.3
Reliance power ltd 0.30 0.26 0.15 0.11 0.00
Tata power company ltd 0.71 0.73 0.74 0.87 0.71
 Tangible net worth
Reliance JUSCO TATA

0.87
0.79 0.74
0.73 0.71

0.39
0.3 0.28 0.33 0.3
0.22 0.26
0.15 0.11
0

MAR'16 MAR'15 MAR'14 MAR'13 MAR'12

A lower tangible ratio means the business has lots of tangible assets relative to
the amount of debt it holds. If the ratio is increasing, that means either the
company is taking on more debt and liabilities or is losing cash and assets.

Thus we can conclude that JUSCO has a better tangible net worth in
comparison to its competitors Reliance Power Ltd and Tata Power Ltd.

Your tangible net worth is similar to net worth in that it takes into consideration
assets and liabilities, but your tangible net worth goes one step farther. It
subtracts the value of any intangible assets, including goodwill, copyrights,
patents and other intellectual property.

Here, tangible net worth of Tata Power Company Ltd (0.87) is better than Jusco
(0.39) and reliance power ltd(0.30)

So Tata Power Company Ltd is at first rank by tangible net worth position than
Jusco and Reliance Power Ltd.

Interest coverage ratio

The interest coverage ratio is a debt ratio and profitability ratio used to
determine how easily a company can pay interest on outstanding debt. The
interest coverage ratio may be calculated by dividing a company's earnings
before interest and taxes (EBIT) during a given period by the amount a
company must pay in interest on its debts during the same period.
 The method for calculating interest coverage ratio may be represented with the
following formula:

Or

Interest coverage ratio is also often called “times interest earned.”

Particular Mar'16 Mar'15 Mar'14 Mar'13 Mar'12

Jusco 6.94 5.11 4.5 3.25 3.15
Reliance power ltd 3.49 1.13 1.49 24.30 6.15
Tata power company ltd 1.67 1.96 2.10 2.51 3.27

Interest Coverage Ratio

Reliance JUSCO TATA

24.3

6.94 6.15
5.11 4.5
3.49 2.1 3.252.51 3.153.27
1.67 1.13 1.96 1.49

MAR'16 MAR'15 MAR'14 MAR'13 MAR'12

Interest coverage ratio is used to determine how easily a company can pay their
interest expenses on outstanding debt. A higher ratio indicates a better financial
health as it means that the company is more capable to meet its interest
obligations from operating earnings. All the companies have a good interest
coverage ratio, that is more than 1.5 in all the years which indicates that a better
financial health.

This ratio measures the margin of safety a company has for paying interest
during a given period, which a company needs in order to survive future (and
perhaps unforeseeable) financial hardship should it arise.

From above table we can say that performance of Reliance Power Ltd (24.30)
is better than Jusco (6.94) and Tata Power Ltd(3.27) .

So profit level of Reliance Power Ltd. is at first rank than comes JUSCO and
Tata Power Ltd.

DEBTOR TURNOVER RATIO

An accounting measure used to quantify a firm's effectiveness in

extending credit and in collecting debts on that credit. The receivables turnover
ratio is an activity ratio measuring how efficiently a firm uses its assets.

Receivables turnover ratio can be calculated by dividing the net value of

credit sales during a given period by the average accounts receivable during the
same period. Average accounts receivable can be calculated by adding the value
of accounts receivable at the beginning of the desired period to their value at the
end of the period and dividing the sum by two.

The method for calculating receivables turnover ratio can be represented with
the following formula:
The receivables turnover ratio is most often calculated on an annual basis,
though this can be broken down to find quarterly or monthly accounts
receivable turnover as well.

Particular Mar'16 Mar'15 Mar'14 Mar'13 Mar'12

Jusco 9% 7.50% 12% 11% 8%
reliance power ltd 2.45% 9.74% 0.96% 0.37% 2.49%
Tata Power company
ltd 7.75% 10.99% 9.15% 8.65% 7.61%

Debtor Turnover Ratio

Reliance JUSCO TATA

12%
10.99% 11%
9.74% 9.15%
9% 8.65%
7.75% 7.50% 8%7.61%

2.45% 2.49%
0.96% 0.37%

MAR'16 MAR'15 MAR'14 MAR'13 MAR'12

Receivables turnover ratio indicates the efficiency with which a firm manages
the credit it issues to customers and collects on that credit. Because accounts
receivable are moneys owed on a credit agreement without interest, by
maintaining accounts receivable firms are indirectly extending interest-free
loans to their clients. As such, because of the time value of money principle, a
firm loses more money the longer it takes to collect on its credit sales.
From above table we can say that performance of Jusco (12%), is better than
Tata power company ltd (10.99) and reliance power ltd (9.74%).

So profit level of JUSCO is at first rank and is followed by Tata Power Ltd and
Reliance Power Ltd.
PROFIT BEBORE TAX
Profit before tax (PBT) is a profitability measure that looks at a company's
profits before the company has to pay corporate income tax by deducting all
expenses from revenue including interest expenses and operating
expenses except for income tax. Also referred to as "earnings before tax" or
"pretax profit", this measure combines all of the company's profits before tax,
including operating, non-operating, continuing operations and non-continuing
operations. PBT exists because tax expense is constantly changing, and taking it
out helps give an investor a good idea of changes in a company's profits or
earnings from year to year.

Particular Mar'16 Mar'15 Mar'14 Mar'13 Mar'12

Jusco 4.15% 6.18% 3.27% 4.73% 5.15
Reliance power ltd 74.36% 34.16% 71.03% 74.60% 47.27%
Tata power company
ltd 14.12% 17.77% 17.55% 17.98% 20.02%

Profit Before Tax

Reliance JUSCO TATA
74.36% 71.03% 74.60%

47.27%
34.16%

17.77% 17.55% 17.98% 20.02%

14.12%
4.15% 6.18% 3.27% 4.73% 5.15%

MAR'16 MAR'15 MAR'14 MAR'13 MAR'12

A higher ratio indicates better financial position of the company.

From above table we can say that performance of Reliance Power Ltd
(20.87%)is better than Jusco(5.15%) and Tata Power Ltd(20.02%)

So profit level of is reliance power ltd at first rank than comes Tata Power Ltd.
LIMITATIONS
 Limitations

 Comparative analysis of financial statement of Jusco with its competitors

simply helps you to spot areas which need improvement. It does not
contribute to solving the issues in hand.
 Comparative analysing of financial of Jusco with its competitor can just
be the first of many steps to improve a company’s performance.
 It simply compares the numbers. It does not take into account the micro
and macro factors that led to your competitor or industry leader succeed
or fail.
 Financial statements reflect past performances and events. If the objective
of the analysis is to evaluate past performance then, not withstanding
other limitations, ratio analysis can be of use to analyst.
 Ratios are not end themselves although this point is most frequently
overlooked by the analyst.
 The calculation of ratios relative to their interpretations is trivial.
 Ratios raise the important question “why?”. For example if they indicate
declining firm profitability the analyst needs to know why it is that
profitability declining. Once he answers this question then he is in a
sounder position to determine whether the condition will continue in the
future and how it will affect his investment decision.
 Ratios do not give yes/no, black/white- type answers.
 They are attention directing and not problem solving.
 Hence it is necessary to look behind the ratio and thus it is the
interpretation of the ratios which is important.
CONCLUSION
 Conclusion

This project of ratio analysis in the production concern is not merely a work of
the project. But a brief knowledge and experience of that how to analyse the
financial performance of the firm. The study undertaken has brought into the
light of following conclusions. According to this project we came to know that
from the analysis of financial statements it is clear that Tata Power Company
Ltd. has better current ratio efficiency than its competitors.
In the next ratio, interest coverage ratio we observed that Reliance Power Ltd. is
better than its competitors.
Debt to tangible net worth ratio provides the lender with an analytical base for
making decision on how much can be loaned to an analysed company. It is
more conservative then debt to equity ratio, because it takes into account only
easily quantifiable net worth & eliminating all unquantifiable intangible assets.
For a lender it does not make sense to provide a company with a loan,
exceeding 100% of it tangible net worth.
Ratio analysis can be used to compare information taken from the financial
statement to gain a general understanding of the results financial positions.
BIBLIOGRAPH
Y
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KHAN, M. Y., & JAIN, P. K. (1992). Financial Management. New Delhi: Hill Publishing Comapany
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Paul, S. (1998). Financial Accounting. New Delhi: New Central Book Agency Pvt.Ltd.