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Internship Report on

Overall Organization Study of


Jindal aluminium company ltd

BY

SUSHMA S
1CG18MBA50

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY,


BELGAUM

In partial fulfillment of the requirements for the award


of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Mrs. Divya C Mr. Nagendra
Assistant Professor, H R manager
Department of MBA HR department
CIT, Gubbi, Tumkur. Jindal aluminium company

Channabasaveshwara Institute of Technology- Gubbi, Tumkur


November 2019

I
CERTIFICATE
To whom so ever it may concern

This is to certify that Sushma S (USN 1CG18MBA50), student of Master of

Business Administration course of from Channabasaveshwara Institute of

Technology, Gubbi, Tumkur, has carried out the internship study at our

organization, from 08th June 2019 to 4th August 2019 under our guidance

We wish her all the success in his/her future endeavors.

II
Channabasaveshwara
Institute of Technology
(NAAC Accredited & ISO 9001:2015 Certified Institution)
(Affiliated to VTU, Belgaum & Recognized by A.I.C.T.E. New Delhi)
NH 206, (B.H. Road), Gubbi, Tumkur – 572 216. Karnataka
URL: www.cittumkur.org e-mail: mba@cittumkur.org
Department of MBA
CERTIFICATE

This is to certify that Sushma s bearing USN (1CG18MBA50), is a bonafide

student of Master of Business Administration course of the Institute

(2018-2020 Batch), affiliated to Visvesvaraya Technological University,

Belgaum. Internship study report with special reference to “Jindal aluminium

company” is prepared by her under the guidance of Divya C, in partial

fulfillment of the requirements for the award of the degree of Master of Business

Administration of Visvesvaraya Technological University, Belgaum Karnataka.

Mrs. Divya C Mr. Praveen Kumar T M Dr. Suresh D S


Assistant Professor Head Principal
Department of MBA Department of MBA CIT, Gubbi
CIT, Gubbi, Tumkur CIT, Gubbi, Tumkur Tumkur

Examiners

Sign: Sign:

Name: Name:

Institution: Institution:

III
Jindal aluminium company

DECLARATION

I, Sushma s, hereby declare that the Internship report entitled “(Title)” with
reference to “(Organization with place)” prepared by me under the guidance of
Divya C, Assistant Professor, M.B.A Department, Channabasaveshwara
Institute of Technology, Gubbi, Tumkur and external assistance by (Nagendra,
Designation and Organization).

I also declare that this Internship work is towards the partial fulfillment of the
university regulations for the award of degree of Master of Business
Administration by Visvesvaraya Technological University, Belgaum.

I have undergone a summer project for a period of four weeks. I further declare
that this project is based on the original study undertaken by me and has not
been submitted for the award of any degree/diploma from any other University/
Institution.

Place: Gubbi Signature:

Date:00-11-2019 Name: Sushma S

USN: 1CG18MBA50

IV
Jindal aluminium company

ACKNOWLEDGMENT
I feel greatly honoured to be part of our beloved and highly esteemed educational
institution - Channabasaveshwara Institute of Technology, Gubbi for developing
me as a real MBA student.

I wish to place my deep sense of gratitude to Dr. Suresh D S, Principal & Director
CIT who has been a constant source of inspiration to me and have encouraged me to
undertake and conclude this project successfully.

I am very much pleased to acknowledge the support of Mr. Praveen Kumar T M


Assistant Professor & Head, Department of MBA, CIT Gubbi; his innumerable
suggestion, keen interest and constant co-operation towards my project.

I am extremely grateful to Mrs. Divya C, Assistant Professor, Department of MBA,


CIT, Gubbi; who has helped me thought this project and has given the shape with
great interest.

I extend my warm regards to my external guide Nagendra Designation and Address,


for his/her support extended during my project

Last I am grateful to my beloved parents and my friends, Faculty for their


encouragement, which is the great source of my inspiration.

Place: Gubbi
Date:00 - 11 - 2019
Sushma S
1CG18MBA50

V
Jindal aluminium company

TABLE OF CONTENTS

SL Page
Chapter
No Number

Chapter 1:
1 Introduction about the internship, and
Industry Profile

Chapter 2:
2
Organization Profile:

Chapter 3:
3
Mckensy’s 7S framework

Chapter 4:
4
SWOT Analysis

Chapter 5:
5
Analysis of financial statement.

Chapter 6:
6
Learning experience.

Bibliography

Annexure

VI
Jindal aluminium company

LIST OF TABLE

SL Page
Table
No Number
1 Current ratio
2 Debt-equity ratio
3 Net profit ratio
4 Return on investment
5 Asset turnover ratio

VII
Jindal aluminium company

LIST OF GRAPH

SL Page
Table
No Number
1 Current ratio
2 Debt-equity ratio
3 Net profit ratio
4 Return on investment
5 Asset turnover ratio

VIII
Jindal aluminium company

EXECUTIVE SUMMARY

The Jindal aluminium company limited is a k knowledge driven industry and is


heavily depends on research and development for new products and growth however,
basic research is a time consuming and expensive process and it thus, dominated by
large global multinationals, Indian companies have recently entered the area and
initial research have been encouraging global mineral and mines market .

Jindal aluminium limited established its factory for manufactures of aluminum


extractions in the year 1968. Founder is sitaram Jindal, it is also exporting its
products several countries all over the world. JAL produces are well known for its
quality and considered best among more than 100 aluminium extraction manufacturer
in the country, companies present turnover is Rs 900 crores, share capital and reserve
are around Rs 803 crore. Since beginning it is a profit making company.

The main objective of the internship study is to aplly the theoretical knowledge in yhe
practical way in the organization. Also to know the organization working condition
and to understand and develop the McKenzie’s 7s model by getting the information
available in the organization.

The project includes industry profile, organization profile, porters five force model,
SWOT analysis and financial analysis.

IX
Jindal aluminium company

Chapter: 1
INTRODUCTION

Internship is a work experience for a limited period of time offered by an

Organization .typically internship means exchange of service between intern and


organization. It can be used to create professional network and to lead future
employment opportunities.

Internship is an excellent way to developing and maintaining a strong professional


network for the future. Internship provides real world experience to those looking to
explore our knowledge and skills required to enter into a particular career field.
Internship is one of the short term activities to learning theoretical knowledge into
practical experience. Interns generally have a supervisor who assign specific tasks and
evaluate their overall work.

Internship helps to develop individual to theory into practical work experience and
also develop professional work habits. it also provides an understanding of
professional culture gives an opportunity to analyze work place settings and offers
platforms to compare different in a work system.

Objectives of internship

 To know about the industry and companies profiles.


 To understand McKenzie’s 7s model of the company.
 To access strength, weakness, opportunities, threats of the company.
 To gain practical exposure in the organization.
 To access financial performances by using different finance

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Jindal aluminium company

INDUSTRY PROFILE
Introduction

India holds a fair advantage in cost of production and conversation costs in steel and
alumina. Its strategic location enables convenient exports to develop as well as the
fast-developing Asian market.

India produces 95minerals-4fuel related minerals, 10 metallic minerals, 23non-


metallic minerals, 3atomatic minerals and 55 minor minerals (including building and
other minerals)

Rise in infrastructure development and automotive production are driving growth in


the sector. Power and cement industries are also aiding growth in the metals and
mining sector. Demand for iron and steel is set to continue, given the strong growth
expectations for the residential and commercial building industry,

Market size

India is the 3rd largest producer of coal. Coal production in the country stood at 688.8
millions tones between April 2018-mar2019.

India ranks 4th in terms of iron ore production globally. In FY 18, production of iron
ore stood at 210 million tones, India has around 8 percent of world’s deposits of iron
ore. India becomes the world’s second largest crude steel producer in 2018 with an
output of 106.5 million tones.

According to ministry of mines, India has the 7 th largest bauxite reserves-around


2,908.85 millions tones in FY17.aluminium production stood at 0.92 millions metric
tonnes during apr-june 2018 and its forecasted to grow to 3.33 million tonnes

in FY20.

Investment
 Cumulative FDI inflows into the metals and mining sectors between April
2000 and December 2018 stood at US$ 14.65 billion as per the department of
industrial policy and promotion (DIPP).

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Jindal aluminium company

 Under the mines and minerals(development and regulation)Act of 1957,FDI


up to 100% under automatic route is allowed for the mining and exploration of
metal and non-metal ores including diamond,gold,silver,and precious ores,
while FDI up to 100% under government route is allowed in for mining and
mineral separation of titanium bearing minerals and its ores.
 The government of India is taking steps boost the country’s domestic steel
sector and raise its capacity to 300 million tonnes(MT) by 2030-31.

GOVT INITIATIVES

 FDI caps in the mining and exploration of metal and non-metal ores have been
increased to 100percent under the automatic route.
 In July 2018,union minister of coal, railways, finance and corporate affairs
launched a mobile application khan prahari and coal mine surveillance and
management system(CMSMS) developed by central mine planning and design
institutes(CMPID)
 National mineral policy 2019 launched for transparency, better regulation and
enforcement, balanced social and economic growth into the sectors.

ACHIVEMENTS

 33 blocks of major minerals were successfully allocated in 2017.


 Mining surveillance system (MSS) we launched on January 24, 2017. It aims
to curb illegal mining activity through automatic remote sensing detection
technology.
 The multi-sensor aero-geophysical survey of the obvious geological potential
area was inaugurated on April 07, 2017
ROAD AHEAD
There are significant scope for new mining capacities in iron ore, bauxite and coal and
considerable opportunities for future discoveries of sub-surface deposits.
Infrastructure projects continue to provide lucrative business opportunities for steel,
zinc and aluminum producers, aluminum producers, aluminum production is
forecasted to grow to 3.33 million metric tonnes by FY20.

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Jindal aluminium company

PEST ANALYSIS:
PEST analysis (political, economic, social and technological) is a management
method whereby an organization can assess major external factors that influence its
operation in order to become more competitive in the market.
Political factors:

Political factors are often related to the level of intervention and nature of intervention
of the local and national government in the business and economic environment.
Government policies and governance system playa a huge role in nature and
objectives of the policies.

 Governance system: the present governance system in India Has served its
purpose for the long time and I don’t think much will change in the process
even though it may throw up leader that can lead divergent policy making
from the historical norm. Aluminium industries has to keep a close eye on the
industry wide government priorities to predict trends.
 Political stability in the existing markets: aluminium industries operates in
numerous countries so it has to make policies each country based on the metal
mining industry specific requirements. Given the recent rise in populism
across the world I believe that India can see similar trends and may lead to
greater instability in the India market.
 Regulatory practices: aluminium industries the to manage diverse regulation in
the various markets it is present in, over the last last few years India and other
emerging economies have changed regulations regarding not only market
entry but also how companies in metal mining can operate in the local market.
 Taxation policies: it has resulted in high profits and increasing spending in the
research and development. The increasing inequality in India can lead to
change in the taxation policies, secondly local mining specific taxation to
contain the carbon footprint of the basic materials sector.
Economic factors
Economic factor includes- consumer disposable income, the stage of economy of
country name, economic performance of company name, taxation rate, interest rate,
labour market conditions, inflation rate, exchange rate etc….

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Jindal aluminium company

 Economic cycles: the performance of aluminium industries in India is closely


correlated to the economic performance of the India’s economy. The growth in
last two decades is built upon increasing globalization and utilizing local
resources to cater to global market.
 Downward pressure on consumer spending: even though the consumer disposable
income has remain stable, the growing inequality in the society will negatively
impact consumer sentiment and thus impact consumer spending behavior.
 Efficiency of financial markets in India- aluminum industries can access vibrant
financial markets and easy to availability of liquidity in the equity market of India
to expand further globally.
 Inflation rate: the easy liquidity in the market post the great recession of 2018 will
lead to increasing inflation in the India economy.

Social factors:

Each society and culture has its own way of doing a business. social factors includes-
societal roles and norms, health and safety attitudes, demographics, attitudes towards
certain products and services, culture, acceptance of entrepreneur spirit, gender roles,
traditions etc..

 Education level: the education level is high in India especially in the aluminium
industries sector. Aluminium industries can leverage it to expand its presence in
India.
 Power structure: there is an increasing trend of income inequality in India. This
has altered the power structure that has been persistent in the society for over last
6-7 decades.
 Attitudes towards health and safety: with increasing liberalization the attitude
towards health and safety are getting lax.
Technological factors:

Technology is fast disrupting various industries and sector name is no different. There
are numerous ways technological factors are impacting the company name and
industry name in country name. Some of the technological factors are- rate of
technology driven change, supply chain distribution because of technology, in
customer services, access to greater information, population access to technology.

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Jindal aluminium company

 Technology transfer and licensing issues for aluminium industries: in the basic
materials sectors there is no strong culture of technology transfer and
companies often are reluctant to transfer or license technologies for the fear of
creating competitors out of collaborators
 Intellectual property rights and patents protection: if India have higher
safeguards for IPR and other intellectual property rights then more and more
players are likely to invest into research and development.
 Empowerment of supply chain partners: technology has shortened the product
life cycle and it has enabled suppliers to quickly develop new products.

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Jindal aluminium company

ORGANISATION PROFILE

Background of the company:

Name: Jindal Aluminium Company

Year of establishment: 14 July 1970

Legal status of firm: public limited company

Managing director: pragun Jindal aluminium

About the company

Jindal aluminium limited (JAL) established its factory for manufacture of aluminium
extractions in the year 1968 at Bangalore. JAL has 10 aluminium extrusion presses
with an installed capacity of 1, 00,000 TPA. The company is the leader in aluminium
extrusions in India having produced about 50,268 MT during 2012-13 and it being the
largest manufacturer of aluminium extrusion, is meeting countries 25% of total
demand.

It is also exporting its products to several countries all over the world. JALs products
are well known for its quality and considered best among more than 100 aluminium

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Jindal aluminium company

extraction manufacturers in the country, due to image, reputation and high quality, its
products command 10-15%premium in the market.companys present turnover is Rs.
900 crore, share capital and reserve are around Rs. 803 crore. Since beginning it is a
profit making company.

JAL has always advocated the use of clean energy; wide power is environment
friendly and a green technology. or 12.04MW wind power project, situated at
chitradurga district,200 km from Bangalore has made us self sufficient in terms of
power

Since inception Jindal aluminum has instituted and runs many charitable trusts /social
organizations through which it renders yeoman services to mankind. Philanthropy,
inculcated deep within has become a ways of life at JAL it is giving donations
regulatory to over 600 organizations and scholarships to more than 9500 students all
over India without any discrimination of cast and creed. Its trusts and societies are
having substantial funds to generate recurring income year on year for donations and
other charitable activities, continuing for decades.

Jindal aluminium has taken a step forward by diversifying into aluminum rolled
products up to 5.5 micron thick foils. This world class facility had been setup at
dabaspete, Bangalore, 35kms from the existing extraction plant. With an installed
capacity of 3000 TPM of sheets, foils, slugs, circles, house foils, casseroles, fan
blades and fin stocks etc

2.2 VISION MISSION AND QUALITY POLICY


2.2.2 Vision statement
“To become the largest supplier of quality aluminium extrusions and rolled products
in the global market.

2.2.2 Mission statement


“To cater to the customers both in the domestic market as well as global market with
what they need at a price, which to them represents value, and delivered in a manner
that exceeds their expectation.

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Jindal aluminium company

2.2.3 Quality policy

We at Jindal aluminium limited are committed to comply with requirements of ISO


9001: 2015 to ensure good quality, meet customer supply of extraction of aluminium
and its alloys.

 Detect and prevent any non- conformance during production.


 Identify risk and opportunities in all processes for improvement.
 Train and motivate all our employees to sustain their continual awareness on
quality system.
 Upgrade our technology continually to meet expectations of customers.
 Establish and review quality objectives and take necessary action as needed.
 Effectively communicate the quality policy to our employees and other relevant
interested parties.
 Improve quality of life of the communicates living around us by providing basic
needs like health, water, education etc…

2.1 PRODUTS/SERVICES PROFILE

LIST OF THE PRODUCTS:

 Aluminium plain sheet


 Aluminium extracted products
 Aluminium flat rolled products
 Renewable energy

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Jindal aluminium company

ALUMINIUM PLAIN SHEET

This simple process is the basis for producing aluminium plate, sheet and foil. The
most widely used in applications including aerospace (the skins of planes)
transportation (auto body sheets) packaging (can bodies and ends) and construction
(building facades).

Aluminium sheets are the most widely used aluminium products, not only daily life,
but also in industrial application. Its application in industry can be such as:

 Aluminium sheet applications on the railway train is mainly used foe structure
panel, upper beam, eaves beam and bottom roof beam, truck parts, doors, window
and interior decoration, water tank etc…
 Aluminium sheet used mainly in automobile manufacturing passenger car doors,
fittings, protection board, engine cover, front and back cover, car door and so on.
 At present 5 series aluminium sheet is the most widely used type in boat industry.
5 series aluminium magnesium alloy is with high high strength, strong stress
resistance, corrosion resistance, can adapt to the marine environment, low density,
mainly used for high speed boats: hydrofoil, flying boats, sailing, sea patrol work
boat, car passenger ferry, etc..

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Jindal aluminium company

ALUMINIUM EXTRACTED PRODUCTS:

Jindal aluminium limited is the only manufacturer in the country equipped with 11
extraction presses ranging from 6 extraction press container. With a whopping 1,
20,000 MTPA production capacity, we are known for our quality and commitment.
Our products are widely accepted by many segments such as, architectural,
electronics, electrical, transportation etc...

ALUMINIUM FLAT ROLLED PRODUCTS:

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Jindal aluminium company

Jindal aluminium limited commissioned its flat rolled aluminium manufacting unit
near Bangalore, where it manufactures various alloys starting from the thickness
range of 0.009 mm up to 5 mm and catering to various industries. In a very short span
of time, we have become India’s second largest manufacturer of aluminium rolled
products, with a manufacturing capacity of 40,000 MT/annum.

RENEVABLE ENERGY:

In the renewable energy sector. Being a strong proponent of sustainability, Jindal


aluminium ltd is a pioneer in the renewable energy sector in Karnataka. JAL was the
first company to set up both wind power (1997) as well as solar energy plant in
Karnataka (2013).

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Jindal aluminium company

2.1Ownership pattern

Shareholding pattern-Jindal aluminium company ltd

Holders name No of shares % of share holding

Promoters 547721321 53%

Foreign institutions 54038063 15.33%

Mutual funds 71903382 23.47%

General public 85614613 8.40%

jindal aluminium company

23%

promoters
foreign institutions
general publics
53% mutual funds
8%

15%

2.2Achievements/awards

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Jindal aluminium company

Apart from being the first company in the entire aluminium extraction industry to win
the ISO 9001 certification, abs certification and HSB certification, Jindal has many
more first its credits:

 Development of in-house machinery


 Designing extraction presses capable of producing intricate extraction.
 Making the biggest bore irrigation tubling with 203 mm (8) diameter.
 Implementation of hot log shear, hot top casting and log heating furnace.
 Usage of automatic extraction handling equipment like puller and fly saw.
 Development of heat tubes for space applications.

AWARDS AND ACHIVEMENTS

 Regional award for export excellence 2004-05


 Export performance award 2003-04
 Regional award for export excellence 2004-05
 Global environment platinum award-2015
 National energy conservation award-2007
 National safety award 2004
 Ernst and young entrepreneur of the tear
 Global training and development leadership awards-2015
 Greentech gold awards for best safety practices 2014
 Certificate of appreciation- greentech foundation 2014

2.3Future growth and prospects

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Jindal aluminium company

 JAL aims to clear all debt in next 2 years


 Jindal steel plans Rs 750 crores expansion
 Jindal steel to enhance angel plants capacity from 6mtpa to 20mtpa in next 12
years.
 Plan to become a global trader of mineral in future.

WORK FLOW MODEL

BAUXITE

BUYERS PROCESS

ALUMINIUM OR
ALUMINIUM OXIDE

HALL HEROULT PROCESS

PURE ALUMINIUM

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Jindal aluminium company

Chapter: 3
Mckensy’s 7S framework
2.1Introduction to McKenzie’s 7S framework

While some models of organizational effectiveness go in and out of fashion, one that
has persisted is the Mckineys 7s framework. Developed in the early 1980s by tom
peters and Robert waterman, two consultants working at the Mckineys and company
consisting firm in United States to diagnose the causes of organizational problems and
to formulate programs for improvement. The basic premise of the model is that there
are seven internal aspects of an organization that need to be aligned if it to be
successful.

7s factors

Hard S Soft S

Strategy Style

Structure Staff

System Skills

Shared values

The 7s frame work of McKenzie’s is a value based management model that describes
how one can holistically and efficiency organize a company.

These are 7 basic dimensions which represent the core managerial activities.

These are the levels which the executives use to influence complex and large
organizations. Together these factors determine the way in which a corporation
operates the 7s in the model are as follows.

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Jindal aluminium company

Mckineys and companies framework provides useful framework for analyzing the
strategic attributes of an organization. The Mckineys consulting firm identified
strategy as only one of seven elements exhibited by the best managed companies.
Strategy, structure and system can be considered the hardware of the organization,
while style, staff. Skills and shared values can be considered as the software of the
organization.

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Jindal aluminium company

I. STRUCTURE
Introduction:

Organization structure refers to the formal relationships among various positions and
activities performed in the organization. Organization structure involves arrangements
about reporting relationship, line of communication, rules and procedures which exist
to guide the various activities performed by various hierarchical position in the
organizational structure.

Structure represents the way of business divisions and units are organized. Its also
shows the clear picture about all departments of organization.organozation pattern
defines the pattern of relationship among the component of the organization.
Organization is a diagrammatic representation of management position departments.

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Jindal aluminium company

a. Organization Structure
RDSS division

GRP
IP cell
Administrative
functions, HR and IR

SS RC research group

Metallographic RTG
IFA Research group
laboratory
SMC Research group
Physical laboratory
Product
Research group
CMT laboratory
CP
Research group
Chemical laboratory
MCJ
Plant metallurgical Research group
inspection group MMPD
Research group

Research application

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Jindal aluminium company

b. Structure of Finance Department

FINANCE DEPARTMENT

Financial manager

Accountant

Staff

Functions of Key People in Finance Department

Financial accounting preparation, reporting, analysis, budgeting, project management


and more

 Book keeping and payable/receivables


 Financial reporting and control
 Tax and compliance
 Strategic planning and financial planning and analysis
 Treasury and working capital management
 Capital budgeting
 Corporate development and corporate strategy
 Risk management

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Jindal aluminium company

c. Structure of Human Resource Department

HUMAN RESOURCE DEPARTMENT

Human resource manager

HR executive

Office staff

Functions of Key People in HR Department

 Recruitment and selection


 Orientation
 Maintain good working condition
 Managing employee relation
 Training and development
 Compensation and benefits
 Employee and labour relations

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Jindal aluminium company

d. Structure of Marketing Department:


MARKETING DEPARTMENT

Marketing manager

Sales officers

Sales persons

Functions of Key People in Marketing Department

 Marketing planning
 Gathering and analyzing market information
 Standardization and grading
 Product designing and development
 Packaging and labeling
 Customer support services
 After-sales services
 Handling customers complaints
 Technical service
 maintenance

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Jindal aluminium company

II. SYSTEMS

Introduction:

Systems are the processes and information flow system refers to the rules, regulation
procedure both formal and informal that complement the organization structure. This
includes the way the functions of different departments are carried out.

The supporting systems and process of the firm, like information system, financial
reporting, payment system, resource allocation etc...

Inventory control system


Raw material, production consumables, construction material and store and spares are
valued at low cost and net realizable value.

Finished goods, semi finished goods and work in progress is valued lower than cost
and net realizable value. Cost for this purpose includes direct materials, direct labours,
excise duty and appropriate overheads for bringing the inventory to its present
location and condition.

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Jindal aluminium company

a. System at Finance Department


The finance department operates an accounting operates an accounting and reporting
system. The primary purpose of the finance department is to provide sound and fiscal
policies and accurate financial reporting to support the overall fiscal management of
every country.
The finance department is under the direction of the country manager and includes
such activities as payments of the country bill assisting budget preparation, processing
payroll administration employee benefits auditing administrating debts and account
receivable and assisting department with annual budget another financial matters.
The department also has responsibility of overseeing all information technology
matters which includes the acquisition development, maintenance and use of
computers and telecommunications systems with in the country.
Functions of financial department.
 To prepare the budget
 Financial management
 Management of taxes
 Prepare balance sheet of every year
 Reduce cost of production
 Management of investment of company
 Maintain financial activities
 Management of financial risk.

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Jindal aluminium company

b. System at Human Resource Department

A human resources system is a process of strong employees data, managing payrolls,


recruitment process, benefit administration and keeping track of attendance records, it
ensures everyday human process are manageable and easy to access.

Human resource information systems provide a means of acquiring, storing,


analyzing, and distributing information to various stakeholders its also improvement
of strategic decision making.

Functions of HR department

 Hiring
 Retaining
 Administration
 Managing payroll
 HR planning
 Recruitment
 Performance record
 Absent management
 Employee self services
 Employee resign module
 Employee’s grievance holding.

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Jindal aluminium company

c. System at Marketing Department


A marketing department promotes your business and drives sales of its products or
services. It provides the necessary research to identify your target customers and other
audiences. Depending on the company’s hierarchical organization, a marketing
director, manager or vice president of marketing might be at the helm.

Functions of marketing department

 Listening to customer needs


 Work and transmit brand value
 Innovate
 Communicate with the rest of the company
 Helps to improve the sales processes and customer
 Manage marketing budget
 Define strategic marketing plans
 Coordinate efforts with those of the marketing partners of the company
 Calculate return on investment(ROI) of the company
 Work and transmit the brand value,

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III. STRATEGY

Introduction:

Strategy is plan developed by firm to achieve sustained competitive advantage and


successfully compete in the market.

It is a plan where the company has to double the production in next five years. it is
bulk manufacturing strategy which continuously trying to reduce the overall cost of
the products including manufacturing, administrative, finance and rather over heads.
Its create a objectives and trying to precautions taken for to fulfill this objectives.

Innovative Marketing Strategy adopted:

The long term strategy adopted by the company to attain the entire above objectives,
quality plays a very important role. To earn the trust of the customers the company is
using high quality components to its products, timely delivery and best services.

Improving productivity through eliminating wastes by adopting best method of


production.

 To attain the highest level of organization productivity.


 To earn trust of its customer and associates
 To motivate the employees.
 New products provide at low price.
 To provide a fulfilling livelihood to its employees.
 Continuous improvement in knowledge, skills, competence.
 Promote a cultural of achievement and excellence, with emphasis on integrity,
creditability and quality.

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IV. Skills

Introduction:
Employers look for a range of skills in graduate applicants, many of which are
common to a number of different career areas. Those must frequently mentioned are
communication, team working, problem solving, initiative, flexibility and enthusiasm.
Many skills overlap with in another.

Skills Available at Jindal Aluminium Company

Managing the surplus manpower with a human touch has and always will be the
cornerstone of the HR policy of Jindal steel. in times to comes, certain modifications,
may have to be made in view of economic consideration. But the underlying
philosophy as envisaged by the founder has a stamp of permanence in Jindal steel.
The factors that helped the success of rightsizing at Jindal steel could be summarized
as under:

Cultural issues

 Steps to understand employee’s needs/ expectations.


 Preparation of mind and attitudinal attuning

Leadership
 Open and collaborative leadership.
 Identification of key leaders (drivers of change) and development of soft skills
in handling the delicate process of redundancy.

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V. STYLE

Introduction:
It means how managers behave in organization. Style refers to the workers joint and
ordinary way of idea and behaves underwritten norms of actions and thought, styles
that is the model of act taken an era of time.

Decision making is coordinated one and done with wide consultation of top
management, which gives best possible games.

Leadership style at Jindal Aluminium Company

Democratic leadership: in this leadership style, subordinates are involved in making


decisions. Unlike autocratic is centered on subordinate’s contributions. The
democratic leader holds final responsibility, but he or she is known to delegate
authority to other people, who determine work projects.

It means how managers behave in organization. It refers to the workers joint and
ordinary way of idea and behaves unwritten norms of actions and thought, styles that
is the model of act taken an era of time.

Judgment creation depends on authority and responsibility confers on each character


and thus it is dispersed based on description and location held. Decision making is
coordinated one and done with wide consultation of top management, which gives
best possible games.

 The management is given authority to perspective manager and the component


in control to take judgment in day to day negligible matter and other urgent
matters.
 When the problem is huge the organization use brainstorming technique to
solve it.

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VI. STAFF

Introduction:
They are the human resources of organization who ensures their potential in
contributing for accomplishing organizational goals.

Jindal Company is more concerned towards skills of work force, so it mainly targets
towards the quality of human resources during selection process. They check
academic reports, learning ability of candidate and technical skills held by individual.
The company also conducts periodical training and development for employees to
maintain the capabilities of employees to meet the future requirements.

The employees of JAL are from the educational background of diploma, ITI. PUC
and degree etc…

Staff profile at Jindal aluminium company ltd

Particulars No of employees

Production 712

H/R 12

Marketing 17

Finance 20

Total 761

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Shared Values

Introduction:
Shared value means that the workers divide the common guide value. Value is the
belongings that the business would struggle for value act at institute principles.
Provided that management in times of emergency. Identify commercial principles is
also the first necessary step in defining the organizations role in the huge society.

Shared values guide employees towards desired behavior originally called super
ordinate goals, the guiding concepts and principles of the organization- values and
aspiration, often unwritten-that go beyond the conventional statements of corporate
objectives. The fundamental ideas around which a business is built; the things that
influence a group to work together for a common aim.

The shared values must be explicitly stated as both corporate objectives and
individual values. The core values of Jindal Aluminium Company are as follows:

 Reliability
 Commitment
 Ethics
 Excellence
 Unity
 Responsibility

The company aims at providing a safe working environment by incorporating the best
practices in safety sat all the company locations, thus safeguarding the overall
wellbeing of the company employees. The quality policy of the company is to achieve
customer delight through excellence in equity in all the products, processes and
services to emerge as a leading player.

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Shared Values at Jindal Aluminium Company

 Adaptability: being aggressive and pursuing goal.


 Broad-mindedness: tolerant dissimilar viewpoint and pinion
 Cautiousness: mortal caution and minimize exposure to risks.
 Co-operation mortal co-operation and operational well with others.
 Development: achieving personal growth, learning and development.
 Diligence: operational lengthy and undertakable to achieve results.
 Fairness: mortal fair and providing just recognition based and experience.

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FIVE FORCE MODEL OF JINDAL ALUMINIUM INDUSTRY:

Introduction:

The model of pure competition implies that risk-adjusted rates of return should be
constant across firms and industries. However, numerous economic studies have
affirmed that different industries can sustain different levels of profitability; part of
this difference is explained by industry structure.

Michael porter provided a framework that models an industry as being influenced by


five forces. The strategic business manager seeking to develop an edge over rival
firms can use this model to better understand the industry context in which the firm
operates.

Through this assignment, the researcher seeks to analyze applicability of porter’s


model of the industry- namely aluminium industry.

RIVALRY:
In the traditional economic model, competition among rival firms drives profits to
zero, but competition is not perfect and firms are not unsophisticated passive price

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takers. Rather, firms strive for a competitive advantage over their rivals. The industry
of rivalry among firms varies across industries and strategies analysts are interested in
these differences.

Economist’s measure rivalry by indicators of industry concentration. The


concentration ratio (CR) is one such measure. A high concentration ratio indicates
that a high concentration of market share is held by the largest firms- the industry is
concentrated. With only a few firms holding a large market share, the competitive
landscape is less competitive (closer to a monopoly). A low concentration ratio
indicates that the industry is characterized by many rivals, none of which has a
significant market share, these fragmented markets are said to be competitive.

If rivalry among firms in an industry is low, the industry is considered to be


disciplined. When a rival acts in a way that elicits a counter- response by other firms,
rivalry intensifies. The intensity of rivalry commonly is referred to as being cutthroat,
intense, moderate, or weak, based on the firm’s aggressiveness in attempting to gain
an advantage.

In pursuing an advantage over its rivals, a firm can choose from several competitive
moves, such as:

 Changing prices- raising or lowering prices to gain a temporary advantage.


 Improving product differentiation- improving features, implementation
innovations in the manufacturing process and in the product itself.
 Creatively using channels of distribution- using vertical integration or using a
distribution channel that is novel to the industry.
 Exploiting relationships with suppliers.

The intensity of rivalry is influenced by the following industry characteristics:

 A larger number of firms: increase rivalry because more firms must compete
for the same customers and resources. The rivalry intensifies if the firms have
similar market share, leading to a struggle for market leadership.
 Slow market growth: causes firms to fight for market share. In a growing
market, firms are able to improve revenues simply because of the expanding
market.
 High fixed costs: result in an economy of scale effect that increases rivalry.
When total costs are mostly fixed costs, the firm must produce near capability

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to attain the lowest unit costs, since the firm must sell this large quantity of
product, high levels of production lead to a fight for market share and results
in increaser rivalry.
 High storage costs or highly perishable products: cause a producer to sell
as soon as possible. If other producers are attempting to unload at the same
time, competition for customers intensifies.
 low switching cost: increases rivalry. When a customer can freely switch
from one product to another there is a greater struggle to capture customers.
 Low levels of product differentiation: is associated with higher levels of
rivalry. Brand identification, on the other hand, tends to constrain rivalry.
 A diversify of rivals: with different cultures, histories, and philosophies make
an industry under stable. There is greater possibility for misjudging rivals
moves. Rivalry is volatile and can be intense.

THREAT OF SUBSTITUTES

a producing industry and In porter’s model, a substitutes product refers to products in


other industries. To the economist, a threat of substitutes exists when a products
demand is affected by the price change of a substitute product. Products price
elasticity is affected by substitute’s products- as more substitutes become available,
the demand becomes more elastic since customers have more alternatives. A close
substitute products constrains the ability of firms in an industry to raise prices.
The competition engaged by a threat of substitute comes from products outside the
industry.
BUYERS POWER
The power of buyers is the impact that customers have on a producing industry. In
general, when buyer power is strong, the relationship to the producing industry is near
to what an economist terms a monopoly- a market in which there are many suppliers
and one buyers. Under such market conditions, the buyer sets the price, in reality few
pure monopolies exist but frequently there is some anymmentry between buyers.

Buyers are powerful if:

 Buyers are concentrated


 Buyers purchase a significant proportion of output

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Jindal aluminium company
 Buyers possess a credible backward integration threat- can threaten to buy
producing firm or rival.

Buyers are weak if:


 Producers threaten forward integration.
 Significant buyer switching cost
 Buyers are fragmented(many, different)
SUPPLIER POWER
A producing industry requires raw material- labour, components, and other suppliers.
This requirement leads to buyer- supplier relationship between the industry and the
firms that provide it the raw material used to create products. Suppliers, if powerful,
can exert an influence on the producing industry, such as selling raw materials at a
high price to capture some of the industry’s profits.
Suppliers are powerful if:
 Credible forward integration threat by suppliers.
 Significant cost to switch suppliers.

Suppliers are weak if:

 Many competitive suppliers


 Credible backward integration threat by purchasers
 Concentrated purchasers

BARRIERS TO ENTRY/ THREAT OF ENTRY


Barriers to entry are unique industry characteristics that define the industry. Barriers
reduce the rate of entry of new firms, thus maintaining a level of profits for those
already in the industry. From a strategic prospective, barriers can be created or
exploited to enhance a firm’s competitive advantage. Barriers to entry arise from
several sources:
 Government create barriers
 Patents and proprietary knowledge serve to restrict entry into an industry
 Asset specificity inhibits entry into an industry
 Organizational (internal) economies of scale

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Chapter: 4
SWOT – ANALYSIS
4.1Introduction to SWOT Analysis
SWOT analysis is an acronym for strength, weakness, opportunities, and threats.
It is one of a structured planning method to evaluate four elements to carry out of
a company. Product, place, industry and person.
SWOT analysis is very important to analyzing company situations the objectives
also develops strategies. Its help to maximize company strengths and maximize
the weakness in order to take advantages of external opportunities and overcome
threats.
4.2Strength of Jindal company
 Operates the largest coal-based sponge iron plant in the world.
 Sports a product portfolio that caters to varied needs in the steel market.
 Has force of innovation, adaptation of new technologies and the collective
skills of its 15,000 strong, committed work force.
 Produces economical and efficient steel and power through backward and
forward integration.
 Has an enterprising spirit and the ability to discern future trends.
 Has operations in steel, iron, electricity generation and distribution.

4.3 Weakness of Jindal Aluminium Company

 Shortage of coking coal and is largely dependent upon its import.


 Weak performance on the back of the higher raw material cost and the power
& fuel cost.

4.4 Opportunities of Jindal Aluminium Company

 Venture into new businesses by leveraging its core capabilities.


 Increase production capacity to meet the global steel demand.
 Diversify investments to distribute risk in business.

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4.5 Threats of Jindal Aluminium Company

 Hike in the export duty on iron ore fines and lumps.


 Project implementation and raw material security.
 Issues related to land acqu
 ision, raw material linkages and environmental clearness

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Chapter: 5
ANALYSIS OF FINANCIAL STATEMENT
5.1Introduction to Financial Statement Analysis

A financial statement is a collection of information according to reasonable and


dependable accounting measures. Its principle is to express a sympathetic of financial
aspect of a business firm. It will show the performance of the business for a given
period in the form of profit and loss account of the revenue account and the position
business enterprise on a given data on the form of balance sheet. That plays a
dominant role in setting the framework of managerial decisions.

Financial statement analysis is a software application designed for companies who


adopt the IFRS and GAAP accounting standards. This provides an in- depth
performance evaluation of the business through a screening of the last available
financial reports

MEANING

Financial statement analysis refers to the process of determining financial strength


and weakness of the firm establishing strategic relationship between the items of
the balance sheet, profit and loss account and other operative data.

5.2 key points to be considered for financial performance analysis


 Maintain working capital
 It shows overall financial position of the company
 It considered present cash position of the company.
 It represent our financial strength and weakness
 It helps calculated ratio analysis
 A financial statement that show the balance of assets and liabilities as on
particulars year.

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Tools for financial statement analysis

 Comparative financial statement: the comparative financial statements are


statements of the financial position at different periods of time. The elements
of financial position are shown in a comparative form so as to give an idea of
financial position at two or more periods. Any statement prepared in a
comparative form will be covered in comparative statements.
 Trend analysis: trend analysis is a technique used in technical analysis that
attempts to predict the future stock price movements based on recently
observed trend data. Trend analysis is based on the idea that what has
happened in the past gives traders an idea of what will happen in the future.
There are three main types of trend: short-, intermediate and long term.
 Common size statement: the common-size statements, balance sheet and
income statement are shown in analytical percentages. The figures are shown
as percentages of total assets, total liabilities and total sales. The total assets
are taken as 100 and different assets are expressed as a percentage of the total.
Similarly, various liabilities are taken as a part of total liabilities.
 Ratio analysis: a ratio analysis is a quantitative analysis of information
contained in a company’s financial statements, ratio analysis is used to
evaluate various aspects of a company’s operating and financial performance
such as its efficiency, liquidity, profitability and solvency.

5.3 key points to be considered for financial performance analysis

1. Area of financial performance analysis

 Working capital analysis


 Activity analysis
 Probability analysis
 Financial structure analysis
2. Significance of financial performance
 Management

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 Trade creditors
 Corporate social responsibility

5.2Ratio Analysis:
5.4.1 Introduction to ratio analysis:
Ratio analysis is used for analyzing and interpreting financial statements. It also
helps in decision making process by providing useful inference. The most popular
way to analyze the financial statements is computing ratios. It is an important and
widely used tool of analysis of financial statement. While developing a
meaningful relationship between the individual items or group of items of balance
sheet and income statements, it highlights the key performance indicators, such as,
liquidity, solvency and profitability of a business entity. The tool of ratio analysis
performs in a way that it makes the process of comprehension of financial
statements simpler, at the same time, it reveals a lot about the changes in the
financial condition of a business entity.

5.4.2 Objectives of ratio analysis:

 Measurining the profitability: various ratios such as ne profit, gross profit


and expense ratio can be used for the purpose of measuring profitability.
 Measuring efficiency: operating ratios are calculated for the purpose of
measuring operational efficiency of the business.
 Solvency of the business: solvency ratios establish the relationship between
total assets and total liabilities of a concern.

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RATIO ANALYSIS

Current ratio
The current ratio is a liquidity ratio that measures a company’s ability to pay short-
term obligations or those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current
debt and other payables.
Current asset
Current ratio=
Current liabilities
[Rs000]

Year Current assets Current liabilities Current ratio

2018 7,353.53 18,866.96 0.39:1

2019 9,960.34 22,256.19 0.45:1

Current Ratio
0.46
0.45
0.44
0.43
0.42 Current Ratio
0.41
0.4
0.39
0.38
0.37
0.36
2017- 18 2018- 19

INTERPRETATION
It can be observed that the current ratio in 2018-19 is 0.45 its increasing when
compared to previous year but the company is not maintain a industry standard. The
company is in trouble. The company should go for additional finance. The company is
high risky position.

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Quick Ratio

The quick ratio is considered a more conservative measure than the current ratio,
which includes all current assets as coverage for current liabilities. The higher the
ratio result, the better a company's liquidity and financial health; the lower the ratio,
the more likely the company will struggle with paying debts.

Quick assets
Quick ratio=
Current liabilities

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Jindal aluminium company
Debt equity ratio

The debt- equity ratio is calculated by dividing a company’s total liabilities by its
shareholder equity. These numbers are available on the balance sheet of a company’s
financial statement.
Debt
Debt equity ratio=
Shareholders equity

[Rs000]
Year Debt Shareholders’ Debt equity ratio
equity

2018 21,321.24 30,384.61 0.7017

2019 17,595.37 32,427.63 0.5426

Debt equity ratio


0.8
0.7
0.6
0.5
Debt equity ratio
0.4
0.3
0.2
0.1
0
2018 2019

INTREPRETATION
It can be observed that from the above table and graph the debt equity ratio of Jindal
Aluminium Company is in the year 2018 it was 0.7017 and in the year 2019 it was
0.5426 less debt equity shows that company is in financially stable position. So the
company should maintain DER 1:1 as per the industrial norms.

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Return on investment

Return on investment is a ratio between net profit and cost of investment high ROI
means the investments gains compare favorably to its cost. as a performance measure,
ROI is used to evaluate the efficiency of an investment or to compare the efficiencies
of several different investments.
Net profit
Return on investment = × 100
Total investment

Year Net profit Total investment Return on


investment ratio

2018 176.61 44113.80 0.04%

2019 -1154.24 40143.93 -2.87%

return on investment ratio


0.50%

0.00%
2018 2019
-0.50%

-1.00% return on investment ratio


-1.50%

-2.00%

-2.50%

-3.00%

-3.50%

Interpretation
It is observed from the above graph the ROI of Jindal aluminium company we can see
that there is a negative return in the year 2019 it was (2.87) when compared to the
previous year 2018 it was 0.04. Because decrease in the total asset of a company. So
company should concentrate for increase its total assets. The company is not in good
position.
Asset turnover ratio
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Jindal aluminium company
The asset turnover ratio is an efficiency ratio that measures a company’s ability to
generate sales from its assets by comparing net sales with average total assets. In
other words, this ratio shows how efficiently a company can use its assets to generate
sales. The total asset turnover ratio calculates net sales as a percentage of assets to
show how many sales are generated from each dollar of company assets. For instance,
a ratio of .5 means that each dollar of assets generates 50 cents of sales.

turn Net sales


Asset =
ratio Total asset

Year Net asset Total asset Asset turnover


ratio

2018 27383.43 44113.80 0.62

2019 39372.14 40143.93 0.98

Asset turnover ratio


1.2

0.8
Asset turnover ratio
0.6

0.4

0.2

0
2018 2019

INTREPRETATION

It can be observed that from the above table and graph the asset turnover ratio of
Jindal Aluminium Company is in the year 2018 it was0.62 and in the year 2019 it was
0.98 the asset turnover ratio is showing an increasing trend. High asset turnover ratio
will indicates company as generated more sale with its asset.

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Net profit ratio

Net profit ratio (NP ratio) is a popular profitability ratio that shows relationship
between net profit after tax and net sales. It is computed by dividing the net profit
(after tax) by net sales.

net profit
Net profit ratio= ×100
net sales

Year Net profit Net sales Net profit ratio

2018 176.61 27383.43 0.6449%

2019 -1154.24 39372.14 -2.9316%

net profit ratio


1.00%

0.50%

0.00%
2018 2019
-0.50%
net profit ratio
-1.00%

-1.50%

-2.00%

-2.50%

-3.00%

-3.50%

Interpretation:

It is observed from the above graph the Jindal aluminium company net profit ratio is
decreased in the year 2019 (2.9316) when compared to previous year 2018 it was
0.6449. company is not in good position because of decrease in net sales the company
is in efficient management and high cost not strong pricing strategy.

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Chapter: 6
LEARNING EXPERIENCE
I got practical exposure on the synchronized organization flow at JAL and also an
insight into its effective workflow process in each of its departments. I learnt how the
company’s objectives and strategies collectively achieved by his functional process
and how the company’s objectives is divided into its functional processing a good
relationship between the employees,. Many facilities are given to the employees for
effective working and proper functioning of their work. This gave me an exposure
into how job satisfaction, employee morale and organizational environment are vital
for the development of positive.

Experience in the organization it was highly rewarding experience for me to be a part


of JAL I learned to analyze all important aspects of all departments. It helped me to
find out strength and weakness of the organization, which helped me to understand
the operation of financial department. In a nutshell I can say it helped me a lot in
following ways:

 Helped me to find out strength, weakness, opportunity, and threats as well as


the organization.
 Helped me to see the work flow model of the company.
 I also came to know how different employees have different skills, talents,
abilities, attitudes etc...And how they are being co-ordinate and utilized in
optimum manner, in achieving organizational goals.
 Also I have come to know how individual should be dynamic in co operate
sector, which should guide me in my carrier planning.

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BIBLIOGRAPHY
www.JAL.in
www.ibef.com
Wikipedia
www.money control. Com

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Jindal aluminium company

ANNEXURE
Balance sheet of the JAL for the year ended 31st march...
[000]

particulars Mar 2018 Mar 2019


Total share capital 96.79 96.79

Equity share capital 96.79 96.79

Share application money 4.80 0.00

Preference share capital 0.00 0.00

reserves 30,283.02 32,330.85

Revaluation reserves 0.00 0.00

net worth 30,384.61 32,427.64

Secured loan 39,198.85 34,766.11

Unsecured loan 0.00 0.00

Total debt 39,198.85 34,766.11

Total liabilities 69,583.46 67,193.75

Gross block 73,427.47 73,649.87

Less: accum. depreciation 0.00 0.00

Net block 73,427.47 73,649.87

Capital work in progress 0.00 0.00

investments 145.97 150.18

inventories 4,959.56 6,509.53

Sundry debtors 1,826.09 3,029.19

Cash and bank balance 467.88 421.62

Total current asset 7,253.53 9,960.34

Loans and advances 8,403.45 5,824.93

Fixed deposits 0.00 0.00

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Jindal aluminium company

Total CA, loans and advances 15,656.98 15,785.27

Differed credit 0.00 0.00

Current liabilities 18,866.96 22,256.19

provisions 339.66 436.45

Total CL and provisions 19,206.62 22,692.64

Net current assets -3,549.64 -6,907.37

Miscellaneous expenses 0.00 0.00

Total assets 70,023.80 66,892.68

Contingent liabilities 0.00 0.00

Book value(Rs) 313.87 335.03

Profit and loss account

particulars Mar 2018 Mar 2019


Sales turn over 27,383.43 39,372.14

Excise duty 0.00 0.00

Net sales 27,383.43 39,372.14

Other income -584.43 -1,462.72

Stock adjustment 241.85 225.97

Total income 27,040.85 38,135.39

Raw materials 9,702.57 16,460.83

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Jindal aluminium company

Power and fuel 0.00 0.00

Employee cost 955.66 1,071.86

Manufacturing expenses 0.00 0.00

Preoperative exp capitalized 0.00 0.00

Total expenses 21,156.17 31,192.54

Operating profit 6,469.11 8,405.57

PBDIT 5,884.68 6,942.85

depreciation 3,883.03 5,480.35

Other written off 0.00 0.00

Profit before tax -1,864.05 -2,801.69

Extra-ordinary items 0.00 0.00

PBT(post extra-ordinary item) -1,864.05 -2,801.69

tax -239.81 -390.17

Reported net profit 9,999,999.99 -2,411.52

Total value addition 11,453.60 14,731.71

Preference dividend 0.00 0.00

Equity dividend 0.00 0.00

Shares in issue(lakhs) 9,679.00 9,679.0

Earnings per share(Rs) 902,975.84 -24.91

Book value(Rs) 313.87 335.03

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Jindal aluminium company

Channabasaveshwara Institute of Technology, Gubbi

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