A

PROJECT REPORT ON
RATIO ANALYSIS
AT

JINDAL STEEL & POWER LIMITED

(2017-18)
[SUBMITTED IN PARTIAL FULFILLMENT OF DEGREE OF BBA]

Under Guidance of: Submitted by:

Dr.S.Srinivas Rao Purnanand Sathua
(HOD) MU15BBA022
 INTRODUCTION:-

Ratio analysis is one of the techniques of financial analysis to evaluate the

financial condition and performance of a business concern. Simply, ratio
means the comparison of one figure to other relevant figure or figures.

According to Myers, " Ratio analysis of financial statements is a study of

relationship among various financial factors in a business as disclosed by a
single set of statements and a study of trend of these factors as shown in a
series of 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. The trend of these ratios over time is studied to
check whether they are improving or deteriorating
 Company Profile:-

Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has
grown from an indigenous single-unit steel plant in Hisar, Haryana to the
present multi-billion, multi-location and multi-product steel conglomerate. The
organization is still expanding, integrating, amalgamating and growing. New
directions, new objectives... but the Jindal motto remains the same- "We are
the Future of Steel ".

JSPL firmly believes that CHANGE is the only constant in life and endeavors
to continuously upgrade its existing technologies, embrace new technologies,
motivate its personnel and uplift the living standards of those around its plants.
Adhering to these values, major expansion plans are being executed:
 OBJECTIVES:-

The objective behind choosing this topic is to know about the various
methods and techniques to calculate the ratio analysis of Jindal Steel And
Power Limited that helps me to anlysis their needs and to establish new
industries or compete the present market conditions respectively.

To evaluate various aspects of a company's operating and financial

performance such as its efficiency, liquidity, profitability and solvency. The
trend of these ratios over time is studied to check whether they are
improving or deteriorating.

I want to make my career in banking and industrial sector, as it is a very

booming industry and have attracted me the most. So this project will help
me knowing more about Industries.
 AWARDS AND RECOGNITIONS:-

National Energy Conservation Award - 2010

National Energy Conservation Award - 2009
National Energy Conservation Award - 2008
National Energy Conservation Award - 2007
National Energy Conservation Award - 2005
National Energy Conservation Award - 2004
National Energy Conservation Award - 2003
National Energy Conservation Award 2002
Winner of Shrishti Green Cube Award 2009
Golden Peacock Environment Management Award - 2008
Greentech Environment Excellence Award - 2008
Greentech Environment Excellence Award - 2007
Srishti Green Cube Award for Good Green Governance - 2007
Golden peacock Eco-innovation Award - 2007.
Srishti Green Cube Environment Excellence Award - 2006
Greentech Environmental Excellence Award 2006
 Research Methodology:-

DATA COLLECTION
Following in order to complete project report a study of various ratio methodology
has been adopted.
The very first step I have taken is that I have collected all the data which are required
for study, after that I have extracted the things out of information, which are needed
for my project.
There are two main types of data collection i.e.
1. Primary Data.
2. Secondary data.
Primary Data:
It means collection of information for the first time. In order to collect such type of
information constructed and information is collected from the respondent. In my
project report study of housing loan schemes primary data is collected by interviewing
the industry staff.
Secondary data:
Secondary data are information, which has already been collected by others. In order to
carry out my project successfully I have relied on the secondary data already available.
 FINDINGS :-

There is a decrease in debt equity ratio. It indicates that less external funds
taken from outside. The company is earning good profit it results lower cost for
fund in comparison to equity cost.

Fixed assets ratio is decreasing which increases the solvency of the firm.

There is increase in proprietary ratio; this shows relatively low degree of risk
to the creditors in case of winding up.

It is found that, in company the working capital is efficiently managed.

Creditors turnover ratio is reduced reflects liberal terms of credit granted by

suppliers.

Company is earning good profit as companys profitability ratio is increased.

 SUGGESTIONS:-

It is suggested to maintain a favorable current assets & absolute ratio which

shows lesser than ideal figures. It can be done through decreasing current
liabilities.

Bring down the administrative & selling exp. Of the company can help to
maximize profit.

Company should try to reduce the collection period this is possible by

adopting cash sales system by offering incentives for yearly payment or the
customer who delay or irregular in payment may be blacklisted.

Fixed Assets should be utilized effectively.

 CONCLUSION:-

Jindal Steel And Power is one of the leading Industries . Its branches
are working at an excellent manner. With turnover of approx. US$3.3
billion, JSPL is a part of about US$18 billion diversified Jindal
Group conglomerate. JSPL is a leading player in steel, power, mining,
oil and gas and infrastructure in India.

OBJECTIVES:-

To know the future prospects of the business

Standardized financial information for comparison
Financial analysis of Jindal steel and power