ORGANIZATION STRUCTURE TRAINING 

AT
JINDAL STEEL WORKS Ltd.

A Report submitted in partial fulfillment of the requirements for the degree of 
Master of Business Administration

By
S.NITHIN
2127825

REGISTER NUMBER

Under the Guidance of

 DR. JOEL GANANAPRAGASH
 

MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE
 JUNE 2021`
 Declaration

I hereby declare that the Organization Structure Training report on JINDAL STEEL WORKS Ltd.,
has been undertaken by me for the award of Master of Business Administration degree. I have
completed this study under the guidance of DR. JOEL GANANAPRAGASH
.

I also declare that this Organization Structure Training report has not been submitted for the award of
any Degree, Diploma, Associate ship, Fellowship or any other title, in CHRIST (Deemed to be
University) or in any other university.

Place: Bengaluru Signature_____________

Date: S NITHIN
           
 Certificate

This is to certify that the Organization Structure Training report submitted by S NITHIN is a record
of  work done by him during the year 2021 under my guidance and supervision in partial fulfillment
of the requirements of Master of Business Administration degree.. 

Place: Bengaluru ______Signature______________

Date: Prof. JOEL GANANAPRAGASH

MBA Programme
                                                                                    School of Business and Management
CHRIST (Deemed to be University)
Bangalore

Chapter 1: Introduction to Organization

HISTORY

JSW steel established in 1982. the company was started with a project by Jindal iron and steel
company. After two decades, the company has several acquisitions and expansion plans for growing
business. Now, the company have six locations across India. JSW steel has a strong international
presence, particularly in USA and Europe. In 2010, the company plans is to increase its capacity to
10 million tonnes overseas. The Company is engaged in the business to produce integrated steel. It
was introduced by the name called Jindal Iron & Steel Co. Ltd. and Karnataka State Industrial
Investment and Development Corporation Ltd. The Company started to set up an integrated steel
plant with a capacity of 1.25 million TPA of hot rolled steel coils at Village Toranagallu, Ballari,
karnataka. In year 2005 Jindal Vijaynagar Steel Ltd (JVSL) approves merger of Euro Ikon Iron &
Steel Pvt Ltd, Euro Coke & Energy Pvt Ltd, and JSW Power Ltd In the same year 2005 the Company
has changed its name from Jindal Vijayanagar Steel Ltd. to JSW Steel Ltd. In 2014 JSW Steel
inaugurates India's most modern COLD ROLLING MILL. In the same year JSW Steel acquired
Raigad unit of Heidelberg Cement. Again in the year 2015 JSW Steel said that it has acquired sponge
iron maker Welspun Maxsteel Ltd which is worth of 1000 crores . JSW steels offers the entire gamut
of Iron and steel products such as hot rolled, cold rolled, Galvanised, TMT bars, iron rods, special
steel bars, JSW steel manufacturing units at Taronagullu in Karnataka, salem in Tamil nadu. vasind
in Maharashtra. The JSW plant in ballari also have

 A Joint Venture company Jindal Tractebel Power Company Ltd. was set up for supply

of power of 2 x 130 MW of power.

 Another Joint Venture Jindal Praxair Oxygen Co. (P) Ltd. was also set up for supply of

Oxygen. Till the power supply is adequate, two standby generators of 2500 KVA were

installed for uninterrupted power supply.

 2 x 11.5 MW diesel power plant was to be set up for the supply to the steel plant.
MISSION,OBJECTIVES, AND STRETAGICS OF THE ORGANIZATION

JSW Steel Limited (“JSW”) believes in creating sustainable growth while balancing utilization of
natural resources and social development in its business decisions. It also believes in pursuing its
business objectives ethically, transparently and with accountability to its stakeholders across the
value chain. JSW is committed to promote integrated responsible behaviour and value for social and
environmental well-being. JSW’s commitment to do business responsibly is built into the core values
of the Company to conduct every aspect of business responsibly and sustainably

VISION

Bring positive transformation to every life we touch

PURPOSE

• Building world class infrastructure, products, solutions.

• Deploying world class capabilities, Nuturing our communities.

VALUES

• Confidence
• Courage
• Cotment
• Coboration
• Compassion

OPERATIONAL AND FINANCIAL KEY PERFORMANCE INDICATORS

CRUDE STEEL PRODUCTION
SALEABLE

(MnT) (MnT)

16.06 14.90
16.69

0616.
16.27
15.8
12.56

9014.
15.55

15.60
14.77
12.13
(3.8%) 5.04% (4.45%) 4.20%
(y-o-y) (5-year) (y-o-y) (5-year)

FY FY FY FY FY

2016 2017 2018 2019 2020 FY FY FY FY FY

2016 2017 2018 2019 2020

Balance sheet indicators (consolidated)

NET FIXED ASSETS NET DEBT-TO-EQUITY RATIO

(B in crore) (times)

58,108 1.48
2.18
57,858

61,804

58,108
55,185

57,141

1.85
1.38

481.
1.34

(5.98%) 2.81%

(y-o-y) (5-year)

FY FY FY FY FY
FY FY FY FY FY

2016 2017 2018 2019 2020

2016 2017 2018 2019 2020
 Chapter 2: Organization Structure

ORGANIZATION CHART-DESIGN & STRUCTURE

Organizational design is actually a formal process of integrating people, information and

technology. Organizational structure is the formal authority, power and roles in
an company. Organizational size, organizational lifecycle, strategy, environment &technology work
together to form a complete organization
Advantages and drawbacks of the organization structure of JSW STEELS

 ADVANTAGES:

1. Specialization – the most obvious advantage of a functional organization is that grouping

employees by specialization ensures a dependable level of departmental competence. This
is particularly so for large organizations that have several functional levels within a
department – a particular tech group that follows up on tech issues not resolved by the
primary telephone tech support group.

2. Operational speed- A related benefit of this kind of organizational specialization is

operational speed. By and large, a senior tech is going to handle a support problem faster
than someone with less experience. There're probably going to train new staff members
faster, too.

3. Operational clarity- Segregating the workforce according to function clarifies

organizational responsibility and allocation of tasks. This tends to eliminate duplication of
assignments that waste time and effort and makes it easier for management to direct work to
appropriate employees.

 DISADVANTAGES

1. Weakening of Common Bonds- Having a common organizational purpose improves

employee morale and performance and is an important predictor of organizational success.
When each group of specialists in a functional organization is relatively isolated, the
common bond that emphasizes a single overarching organizational purpose is almost
inevitably weaker than in an organization where different kinds of employees regularly
interact.
2.  Lack of Coordination- In a perfect functional organization, each group's tasks would
require no input from other functional groups, but this is often not the case. As
communication becomes increasingly dominant in organizations, isolated groups may
underperform or even fail because they have no institutionally recognized way of
communicating needs and issues to other functional groups that might have helped.
Code ,Ethics, Policies of JSW steels
1. CODE OF CONDUCT
JSW Steel Limited (‘the Company’) is committed to the highest standards of corporate
governance in all its activities and processes. It regards corporate governance as the
cornerstone for sustained management performance, for serving all the stakeholders and for
instilling pride of association.At the heart of the Company’s corporate governance policy is
the ideology of transparency and openness in the effective working of the Management and
Board.In furtherance of this policy, the Board of Directors has adopted this ‘Code of Conduct
for Board Members and Senior Management (‘the Code’).This Code of Conduct has been
framed and adopted by the Company in compliance with Regulation 17(5) of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.This Code supersedes the earlier Code of Conduct for Board Members and
Senior Management approved by the Board in its meeting held on 21.10.2014
.

2. APPLICABILITY
This code is applicable to

 All Members of the Board of Directors of the Company; and

 All Executives of the Company (not being Directors) from the rank of Vice
President and above including all Functional Heads (‘Senior Management
Executives’).
Directors and Senior Management Executives are expected to read and understand
this Code, uphold these standards in their day-to-day activities, and comply with all
applicable laws, rules and regulations and all applicable policies and procedures
adopted by the Company that govern the conduct of its employees.The principles
described in this Code are general in nature. Directors and Senior Management
Executives should also review the Company’s other applicable policies and
procedures for more specific instruction. They may contact the HR head or the
Company Secretary, if they have any questions.
3. ENFORCEMENT
Violations of this Code or other Company Policies or Procedures by Senior
Management Executives should be promptly reported to the HR Department
and violations by Members of the Board of Directors of the Company to the
Chairman & Managing Director. The Board has the power to investigate, in
such manner as it may deem fit, any breach or violation or alleged breach or
violation of the Code.The Company will take appropriate action against any
person whose actions are found to violate the Code or any other policy of the
Company. Disciplinary actions may include immediate termination of
employment at the Company’s sole discretion. The Board also has the absolute
power to determine penalty for the same as it may consider appropriate under
the circumstances.Such penalty may be in addition to the penalty levied under
any applicable law for the time being in force for such breach or violation.

4. WAIVER AND AMENDMENTS

• The Board has, at its absolute discretion, the power to waive

compliance with any or all of the provisions of the Code.
• The Board may amend the provisions of this Code from time to time.
• Unless otherwise specified, such amendments shall be effective from
the date of the Board meeting at which such amendments are approved.
5. NO RIGHTS CREATED

This Code is neither intended to nor does it create any right in favour of any Director, Senior
Management Executive, client, supplier, customer or shareholder of the Company or any other
person or entity, whatsoever
 System followed for purchase of raw materials by JSW company

At JSW, we are focused on growing responsibly and taking our suppliers along with us in our
journey towards a better future because alone we can do only little and together so much. With
the same in mind, we have developed a Supplier Code of Conduct to align the interests of our
businesses with those of all our business associates in procurement chain including suppliers,
vendors, contractors, sub-contractors, consultants, and business partners. The Code takes
cognizance of the themes of human rights, labour, environment, and anti-corruption, as described
in the United Nations Global Compact (UNGC). It covers 5 themes, namely-

1. Compliance Management- This includes issues like statutory compliances, quality assurance,
end-user information, sanctions and dealings with embargoed entities and tax evasion
2. Environment- This includes issues like environment protection, management of hazardous
materials, waste & effluent management, energy & water use, responsible production and
consumption, air emissions and ecosystem.
3. Human Rights- This includes issues like protection of human rights, promotion of humane
treatment, indigenous culture and local communities.
4. Labour- This includes issues like freedom of association and collective bargaining, freedom
of speech and expression, forced and compulsory labour, child labour, discrimination,
protection of vulnerable groups, occupational health & safety, industrial hygiene, wages,
working hours and other conditions of work.

5. Business Ethics- This includes issues like prohibition of corrupt practices, conflict of interest,
gifts & hospitality, post-employment restrictions, business conduct, information security,
ethical competition and responsiveness.
 Chapter 3: Functional Departments

Career planning and promotion policy of employees

JSWSL EMPLOYEES SAMRUDDHI PLAN 2019 The JSWSL Employees Samruddhi Plan 2019
(“Plan”) was approved by a special resolution passed by the shareholders of the Company by way of
a postal ballot on May 17, 2019. The Plan was effective from April 1, 2019. The 215 CORPORATE
OVERVIEW 10-147 FINANCIAL STATEMENTS 285-482 JSW STEEL LIMITED |
INTEGRATED REPORT 2019-20 scheme is a one-time scheme applicable only for permanent
employees of the Company, working in India (excluding an employee who is a promoter or a person
belonging to the promoter group, a probationer and a trainee) in the grade L01 to L15 (“Eligible
Employee”), who were not covered under the earlier JSWSL Employees Stock Ownership Plan –
2016. The Indian Subsidiary companies have a similar scheme to cover its employees. The Company
in terms of the applicable provisions of the Companies Act, 2013 (“Act”), the rules framed
thereunder and all other applicable rules and regulations including those issued by the SEBI, to the
extent applicable, has implemented the Plan wherein the Eligible Employee will be eligible to
acquire the Equity Shares of face value `1 each directly from the open market. The Eligible
Employee will be able to purchase the Equity Shares from the open market by availing a loan
provided by a bank / non-banking financial institution (“Lending Agency”) and a broker identified
by the Company to facilitate acquisition of Equity Shares by the Eligible Employees under the Plan.
The Equity Shares bought by the Eligible Employee will be subject to a lien in favour of the Lending
Agency for a period of two years. After expiry of the said period of two years, the Eligible Employee
can either repay the entire loan amount, after which the Equity Shares will become free of the lien, or
the Lending Agency will recover the principal amount by selling the Equity Shares and will transfer
the difference, if any, between the principal amount and the sale value (i.e. market price as on the
date of the sale x. no. of Equity Shares sold) to the Eligible Employee. The interest on the loan will
be serviced by the Company and the Eligible Employee in the ratio of 3:1 (the Company will bear
75% of the total interest liability owed to the Lending Agency and the balance 25% will be borne by
the Eligible Employee). The Plan is being through the existing JSW Steel Employee Welfare Trust in
accordance with Applicable Laws. The number of Equity Shares that are the subject matter of the
Plan in terms of the approval accorded by the Members by way of a postal ballot on May 17, 2019,
shall not be more than 1,24,97,000 representing 0.517% of the issued equity share capital of the
Company. Under the aforesaid Plan, as on March 31, 2020, 5,806 employees of the Company have
subscribed to 69,07,000 shares.
Materials produced by JSW

 Hot Rolled Steel : This steel have thickness upto 25.4mm, Width upto 2050mm and
Coil Weight upto 36mt.the main feature is Ultra-Low Carbon for IF & IFHS grade and
Dual Phase steel requiring divide quench cooling for critical automobile applications There
are very few manufacturers in the world to manufacture X70 grade up to20mm thickness
for Line Pipe applications Higher reduction in finishing stands with transfer bar thickness
up to 55mmLevel2 coiling temperature control to achieve desired cooling pattern and rates
for control of micro-structure

 Cold Rolled Steel: Widest Cold Rolling Mill for automotive steel in India .This is the
first Continuous Annealing Line in India. This State of the art continous galvanising line
with dual pot system for GI and GA production. Very High Strength (Upto TS 980 MPa)
and SEDDQ Grade It has Seamless automatic material storage, tracking, retrieval and
transfer system. This is Proven overseas technology from SMS Siemag for PLTCM and JP
Steel Plantech for CAL and CGL
 NEOSTEEL TMT BARS: Pure Steel gives enhanced strength with durability. The
Best in class Rib Pattern with highest AR value that bonds best with cement. This has
Consistent quality across the bar .HYQST ensures a uniform quality which can be seen as
concentric rings in the cross-section of the bar It is Earthquake resistant It can be easily
Welded due to low carbon content. The main feature is Anti-Corrosive .It is Easy
Bendability due to inherent microstructure with soft ferrite and pearlite core. It has Higher
Fatgue resistance for cyclic load conditions

 WIRE RODS: High Speed Wire Rod Mill (120m/sec)Low Sulphur and Phosphorus
content (0.005% - 0.035%)Low Tramp Elements It has Excellent Mechanical & Consistent
Chemical properties. Its Dimensional accuracy is guaranteed by an automated thickness
control system using advanced numerical models. It is used in heat
treatment,welding,automobile,spring,application.
 Manpower planning and job recruiting process

 Employee retention of 95+%, as a result of continuous engagement with employees, welfare

measures and learning and development opportunities to create a motivated workforce
 Learning & Development initiatives such as Project Lakshya, Future Fit Leaders and IIM-A
Executive Education Programm enable employees to be better prepared for the strategic pillar 'Build
for Tomorrow
 Online JSW Learning Academy to simplify and accelerate training around three strategic
pillars: career-based capabilities, competency-based capabilities and leadership
 Widening reach across leading campuses in India through Summer Internship Programme
and Management Internship Programme to attract and retain talent
 Human rights policy to ensure no discrimination and demonstrating diversity enriches the
Human Capital; same benefits, training and skill enhancement for all members of workforce -
including contract workers and differently-abled persons. Monitoring of compliance with regulations
as well as internal policies to ensure nil complaints on child labour, forced labour and sexual
harassment at workplace
 Promoting diversity by recruiting, developing, retaining and advancing diverse talent, and
initiatives such as JSW Diversity and Inclusion - Springboard for women employees
 Institutional mechanism to listen to employees through interactions, tool-box talks, town halls
and joint safety committees. Also, Candid Conversation as a platform for employees to have
meaningful and free-flowing interaction with the leadership team
 Addressing corruption through: biometric attendance system and direct transfer of wages to
the bank account of contract employees
 Emphasis on safety at the workplace with Near-Miss Reporting going up three-fold from
FY17, increase in safety training, linking of safety performance with the variable pay of senior
management (including executive director) including executive director and safety audit by the top
management
Employee requirement process
 Chapter 4: SWOT Analysis (JSW steels)

JSW Steel SWOT Analysis

SWOT analysis of JSW Steel analyses the brand/company with its strengths, weaknesses,
opportunities & threats. In JSW Steel SWOT Analysis, the strengths and weaknesses are the internal
factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like JSW Steel to
benchmark its business & performance as compared to the competitors and industry. JSW Steel is
one of the leading brands in the industrial products and chemicals sector.

 Below are the Strengths in the SWOT Analysis of JSW Steel:

 India’s third largest steelmaker with a combined capacity of 14+ MTPA hence enjoys
economies of scale
 High growth prospects with a consistently increasing revenue and strong financial position
 One of the lowest cost steel producers in the world
 First steel producer in the world to use Corex Technology for producing hot metals
 Operates in both upstream as well as downstream sectors

 Here are the weaknesses in the JSW Steel SWOT Analysis:

 Limited portfolio diversification compared to industry leaders

Less number of mines under its hood affects availability of raw materials
 Capacity utilization is not cent percent

 Here are the Opportunities in JSW Steel SWOT Analysis:

 Increase in demand from all sectors in Indian & Global world

 Mergers & Acquisition to keep steady supply of raw materials
 Product development by investing more in R&D

 Here are the threats in JSW steel SWOT Analysis:

  Cyclical nature of steel industry needs to have efficient process of production
 Competition from existing and foreign players
 Government and environment regulations

 Below are the top 3 JSW Steel competitors:

 TATA STEEL
 SAIL
 ARCELORMITTAL

Strengths Weakness
- Complete drive system - Not able to competate with local
- Quality manufacture in price wise.
- Service
- Expertise Team
- R&D

opportunities Threats
- Existence/upcoming of several - Vizag steel plant local manufacture
cement companies domination in India market
- China products
 Chapter 5: Functional Highlights across Key Result Areas

Financial highlights of the organization during the last year

• Revenue from operations: ₹ 79,839 crore in FY21, ₹ 26,934 crore in Q4

• Operating EBITDA: ₹ 20,141 crore in FY21, ₹ 8,440 crore in Q4
• Net Profit/(Loss): ₹ 7,873 in FY21, ₹ 4,191 crore in Q4
Consolidated
• Net Debt to Equity: 1.14x and Net Debt to EBITDA : 2.61x
performance
• Dividend of ₹ 6.50 per share

• Average utilization of 84% in FY21, 93% in Q4

• All 13 iron ore mines are operational (9 in Karnataka and 4 in Odisha)
Operational • Significant progress on the organic growth projects
performance • Enhanced downstream production through organic expansions and bolt-on acquisitions

• 5mtpa steel-making capacity brownfield expansion at Vijayanagar approved by the Board

• Acquisitions
o BPSL: 49% stake in March 2021, enables strategic presence in Eastern India
o Asian Colour Coated Ispat in end October, Plate and Coil business of Welspun Corp
Other highlights • Strong progress on digitalisation across the organization
• Rated at Leadership Level (A-) by CDP;
• Recognised as a “Steel Sustainability Champions” (2020) by World Steel Association

Particulars Q4 FY21 Q4 FY20 Q3 FY21 FY21 FY20

Revenue from operations 24,398 15,277 19,239 70,727 64,262
Operating EBITDA 8,021 3,220 5,633 19,259 12,517
Other Income 195 146 169 669 628
Finance Cost 868 954 879 3,565 4,022
Depreciation 1,011 929 979 3,781 3,522
Exceptional Items 386 1,309 - 386 1,309
Profit before Tax 5,951 174 3,944 12,196 4,292
Tax Expenses / (Credit) 1,933 (68) 1,115 3,803 (999)
Profit after Tax 4,018 242 2,829 8,393 5,291
Diluted EPS* 16.62 1.00 11.70 34.72 21,89
 Q4 FY21 Results – Drivers of Performance (Standalone)

• Operated at 93% average capacity utilization vs 91% in Q3

Volumes
• Overall sales volumes higher by 10% YoY and 4% QoQ, driven by strong recovery in demand

• Net sales realisation increased by 19% QoQ, driven by higher steel prices, and favourable
ealisation
geographical and product mix

• Impact of higher iron ore and coking coal prices

Operating Costs • Higher power and fuel expenses on account of increase in price of natural gas
• Higher other operating expenses

Exceptional Item • `386 crore pertains to impairment of loans extended to US coal business

Strong Liquidity and Credit Ratings

• Cash and Cash equivalents of `12,821 crore

• Credit Ratings:
o International: Fitch: BB- (Positive outlook) and Moodys: Ba2 (Stable outlook)
o Domestic: IndRA: AA (Stable outlook); ICRA: AA- (Positive outlook), CARE: AA-
(Stable outlook),
Debt Profile

• Access to diverse pools of liquidity. Strong relationships with domestic and international
 banks and financial institutions
• Net Gearing and Leverage well under stated caps of 1.75x and 3.75x, respectively
• Successfully raised US$2.65bn through global bond markets since 2014

• Acquired ACCIL in October 2020 for `1,550 crore through IBC process
Asian • Pure-play downstream company with a capacity of c.1mtpa, with production facilities in
Colour Maharashtra and Haryana
Coated • Major products: Galvanized and Colour Coated Coils & Sheets mainly for White Goods, Industrial
spat Limited Sheds, Pipes, Drums and Barrels, etc.
(ACCIL)
• Acquired BPSL in March 2021 with stake of 49% through IBC process. Payment to financial creditors in
Bhushan IBC process for 100% stake was `19,350 crore. The cash outgo from the company was `5,087
Power and crore.
Steel
• Integrated steel producer with liquid steel capacity of over 2.5mtpa in Jharusuguda, Odisha,
Limited
primarily flat steel. Downstream facilities in Kolkata and Chandigarh
(BPSL)
• Acquisition gives JSW Steel strategic presence in Eastern India

Plate and • Acquired PCMD business of Welspun Corp for `850 crore
Coil Mill
• Manufactures high-grade steel plates and coils. Located in Anjar, a port based facility in Gujarat with
Division
a capacity of c.1.2mtpa
(PCMD) of
Welspun Corp • Acquisition enables JSW Steel’s entry into different grades of steel products, esp. plates

 Above are the Companies acquired by Jindal steel works in recent years

Net Debt Movement – Consolidated

Particulars 31.03.2021 31.12.2020 31.03.2020

Net Debt (crore) 52,615 51,793 53,473

Cash & cash equivalent (crore) 12,821 13,904 12,004

Net Debt/Equity (x) 1.14 1.29 1.48

Net Debt/EBITDA (x) 2.61 3.53 4.50

Strong Liquidity and Credit Ratings

• Cash and Cash equivalents of `12,821 crore

• Credit Ratings:
o International: Fitch: BB- (Positive outlook) and Moodys: Ba2 (Stable outlook)
o Domestic: IndRA: AA (Stable outlook); ICRA: AA- (Positive outlook), CARE: AA-
(Stable outlook),
Debt Profile

• Access to diverse pools of liquidity. Strong relationships with domestic and international
banks and financial institutions
• Net Gearing and Leverage well under stated caps of 1.75x and 3.75x, respectively
• Successfully raised US$2.65bn through global bond markets since 2014
STATEMENT OF CASH FLOWS
` in crores
For the For the year
year ended ended
31March 31 March
2020 2019*
Cash flow from operating activities
Profit before tax 4,292 11,707
Adjustments for:
Depreciation and amortisation expenses 3,522 3,421
Loss on sale of property, plant & equipment (net) 29 7
Gain on sale of financial investments designated as FVTPL (4) (12)
Interest income (528) (225)
Gain arising of financial instruments designated as FVTPL (16) (8)
Unwinding of interest on financial assets carried at amortised
cost (45) (30)
Dividend income (31) (124)
Interest expense 3,831 3,515
Share based payment expense 37 50
Export obligation deferred income amortisation (140) (160)
Unrealised exchange loss 566 201
Allowance for doubtful debts, loans & advances 96 132
Loss arising from Financial instruments designated as FVTPL 17 18
Non-cash expenditure 14 6
Exceptional Items 1,309 -
8,657 6,791
Operating profit before working capital changes 12,949 18,498
Adjustments for:
Decrease/(Increase) in inventories 1,192 (488)
Decrease/(Increase) in trade receivables 3,514 (2,061)
(Increase) in other assets (1,393) (778)
(Decrease) in trade payable (373) (744)
(Decrease)/Increase in other liabilities (873) 3,577
Increase in provisions 80 39
2,147 (455)
Cash flow from operations 15,096 18,043
Income taxes paid (net of refund received) (986) (2,465)
Net cash generated from operating activities (A) 14,110 15,578
Cash flow from investing activities
Purchase of property, plant & equipment, intangible
assets (including under development and (10,740) (8,333)
capital advances)
Proceeds from sale of property, plant & equipment 41 31
Investment in subsidiaries and joint ventures including
advances and preference shares (939) (981)
Sale of other non-current investments - 50
Purchase of current investments (762) (8,340)
Sale of current investments 765 8,453
Bank deposits not considered as cash and cash equivalents
(net) (7,524) (185)
Loans to related parties (1,623) (3,317)
Loans repaid by related parties 1,236 877
Interest received 423 189
Dividend received 31 124
Net cash used in investing activities (B) (19,092) (11,432)
FINANCIAL HIGHLIGHTS

2015-16 2016-17 2017-18 2018-19 2019-20

REVENUE ACCOUNTS (` in crore)
Gross Turnover 45,288 59,560 71,349 82,499 71,116
Net Turnover 40,858 54,628 70,071 82,499 71,116
Operating EBIDTA 6,401 12,174 14,794 18,952 11,873
Depreciation and Amortization 3,323 3,430 3,387 4,041 4,246
Finance Costs 3,601 3,768 3,701 3,917 4,265
Exceptional Items 2,125 - 264 - 805
Profit Before Taxes (2,468) 5,128 7,651 11,168 3,013
Provision for Taxation (1,966) 1,674 1,538 3,644 (906)
Profit after Taxes (481) 3,467 6,113 7,524 3,919

CAPITAL ACCOUNTS ( ` in crore)

NeixesseincludinOssets) 55,185 57,858 57,141 61,804 61,579
Debt* 42,204 43,334 39,393 52,238 65,477
Net Debt 41,184 41,549 38,019 45,969 53,473
Equity Capital 240 240 241 240 240
Other Equity (Reserve & Surplus) 18,665 22,346 27,696 34,494 36,298
Shareholders' Funds 18,771 22,401 27,534 34,345 36,024

RATIO
Book Value Per Share (`) 77.65 92.67 113.91 142.08 149.03
Market price Per Share (`) 128.33 188.20 288.15 293.05 146.25
Earning per Share (Diluted) (`) (1.40) 14.58 25.71 31.60 16.67
Market Capitalisation (` crores) 31,019 45,492 69,652 70,837 35,352
Equity Dividend per Share (`) 0.75 2.25 3.20 4.10 2.00
Fixed Assets Turnover Ratio 0.74 0.94 1.23 1.33 1.15
Operating EBIDTA Margin 15.4% 21.9% 20.6% 22.4% 16.2%
Interest Service Coverage Ratio 1.84 3.34 4.15 5.02 3.11
Net Debt Equity Ratio 2.18 1.85 1.38 1.34 1.48
Net Debt to EBIDTA 6.39 3.41 2.57 2.43 4.50
* including Lease liabilities, APSSA and excluding acceptance
Financial Performance for Fourth Quarter and Financial Year 2020-21

Kev hiahliahts for Q4 FY2021

Standalone Performance:

• Crude Steel production: 4.19 million tonnes, up by 6% YoY

• Saleable Steel sales: 4.06 million tonnes, up by 10% YoY
• Highest ever quarterly Revenue from operations: €24,398 crores, up by 60% YoY
• Highest ever quarterly Operating EBITDA: Z8,021 crores, up by 149% YoY
• Highest ever quarterly Net profit after tax: T4,018 crores
Consolidated Performance:

• Saleable Steel sales: 4.06 million tonnes, up by 11% YoY

Highest ever quarterly Revenue from operations: Z26,934 crores, up by 51% YoY
• Highest ever quarterly Operating EBITDA: Z8,440 crores, up by 184% YoY

• Highest ever quarterly Net profit after tax: 74,191 crores

• Net Debt to Equity : 1.14x and Net Debt to EBITDA : 2.61x
Kev hiahliahts for the vear FY2021:

Standalone Performance:

• Crude Steel production: 15.08 million tonnes, lower by 6% YoY

• Saleable Steel sales: 14.88 million tonnes, lower by 1% YoY
• Revenue from operations: €70,727 crores, up by 10%YoY
• Highest ever annr al Operating EBITDA: €19,259 crores, up by 54%YoY
• Highest ever annual Net profit after tax: Z8,393 crores, up by 59% YoY
Consolidated Performance:

• Saleable Steel sales: 14.95 million tonnes

• Revenue from operations: 779,839 crores, up by 9%YoY
• Highest ever annual Operating EBITDA: €20,141 crores, up by 70%YoY
• Highest ever annual Net profit after tax: Z7,873 crores, up by 101% YoY

Chapter 6: Findings, Recommendations and Conclusions

Conclusion:
I am Really very Lucky to get opportunity to work in such a big organisation. JSW steels is
the number one leader in india in its field of activity and is part of the top 6 world leaders. In
2017, its turnover was 89.6 million USD, of which 80% was exported and 45% outside india.
The company is represented on 4 states and has carried out in 2017 more than 200 missions in
4 countries (sales, maintenance, services). JSW Steel formed a joint venture for a steel plant
in Georgia. The company has also tied up with JFE Steel Corp, Japan for manufacturing the
high grade automotive steel. JSW has also acquired mining assets in the Republic of
Chile, United States and Mozambique. Its production facilities are exclusively located in
INDIA. During my internship visited Jsw steels works in Karnataka, ballari, india
Manufacturing units and to all the departments in it. It was really a great experience to visit
the units. During the visit I have learned a lot of things how the French company organisation
works and its work culture.

Recommendations:
Primary target segment: Our pricing is premium(~2X), In line with the quality and range of
features of our products compared to local competitors. In the segment where iron and steel
with huge capacity and high technical specifications are required, we have an advantage as
this segment is willing to pay the premium. This segment consists of big players in Indian
cement industry like salem steel plant and their need is for quality iron materials. Establish
machining and boring of couplings business in India: Leverage Make In India and cheaper
costs of an Indian set-up resulting in a competitive price offering, enabling us to compete with
local competitors at comparable price along with a better product. Strategy for other segments
manufacturing in India might result in lower costs and help in competitive pricing against
other players, but it is challenging. In order to capture the other segments where other
company are dominating, the end customers need to be well informed about our product
offerings in terms of quality, specifications and comprehensive after-sales service and
maintenance.