Financial Accounting – Financial Statement Analysis JSW vs.

ISPAT

FINANCIAL STATEMENT ANALYSIS

JSW VS. ISPAT

Submitted to:
Prof. Padmini Srinivasan
Indian Institute of Management, Bangalore

On
September 18, 2008

By:
ABDUL MUJEEB MOHAMMAD (0811212)
SANDESH C (0811251)
SUPRIYA KUMAR (0811261)
TANMAY KUMAR (0811261)

Section-D
PGP 2008-10

STRATEGIC ANALYSIS:

Analysis of the Industry:

1|Page
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

The Indian Steel Industry continued to witness a steady growth during the
year with the total production of finished steel being 55 Million Metric
Tons, 5% increase over previous year. Steel demand was driven by the
overall growth in Gross Domestic Product as well as industrial production.
Steel export during the year was around 5 Million Metric Tons which was
lower by about 3% compared to previous year. Buoyant domestic steel
demand had resulted in lower volumes of exports during the year. Imports
at around 7 Million Metric Tons were significantly higher by over 45%
compared to previous year. The finished steel consumption, world-wide,
was over 1208 Million Tons during the year 2007, increase by 7% over
during the previous year with China consuming 408 Million Tons. BRIC
countries are expected to lead the growth trend with an increase in
demand for crude steel by over 10%. Apart from consolidating, steel
majors are likely to increase presence in key world markets and gain
prominence along the entire
value chain, from mining of iron ore to marketing of value-added steel
products.
.
Products:
The Steel products can be categorised as:

 Semi-finished (semis): These are intermediate products cast from

liquid steel for further rolling into finished products. They include billets,
blooms, rods, which are rolled into long products or slabs which are
rolled into flat products.
 Long products: These include bars, rounds, angles and structurals are
mainly used in construction, infrastructure and heavy engineering.
These products require lesser capacities.
 Flat products: These include sheets, coils and plates and are mainly
used in automobiles and consumer durables. The technology for the
manufacture of flats is critical and it requires larger capacities for
manufacturing. These are high-value products and enjoy higher
margins.
 Pipes: These include seamless pipes and welded pipes.
2|Page
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

Threats and opportunities:

1. Health Of The Economy: GDP growth rate of 8% plus and stable growth
forecast for next 5 years implies continued growth for the steel
industry. Growing industrial production, rapid urbanization, emphasis
on infrastructure creation and demand for consumer durables are
expected to propel a strong demand for steel products
2. Interest Rates: Interest rates affect steel industry directly by increasing
the cost of financing. Rising inflationary pressures and tightening of
monetary policies leading to lower spend on infrastructure and capital
projects. Hence, upswing in the interest rates is detrimental to the tyre
industry.
3. Cost Pressures: The industry is highly raw material intensive which form
70% of the production cost. Higher costs of key inputs, such as Iron
Ore, Scrap, Coking Coal, metallurgical Coke etc. will put enormous
pressure on the cost margins of the steel companies. Also there is
restricted availability of Natural Gas which is a key energy component.
4. Government Regulation: The basic import duty on steel has been
consistently brought down and is nil currently while the government
has levied exports duty on steel products. The global prices of steel are
rising continuously due to increasing prices of raw materials while the
domestic prices of steel are held back and are lower than the global
prices. Hence the domestic steel sector may face threat from cheap
imports.

COMPANY OVERVIEW:
Background:
JSW, a part of O P Jindal Group, is a dynamic Rs. 12,000 Crore enterprise
with business interests in Carbon Steel, Power, Mining, Industrial Gases
and Maritime Infrastructure. Over a short span of a decade, JSW has
carved a niche for itself, with its flagship company � JSW Steel Limited
being the 3rd largest integrated steel manufacturing company in India. An
ISO 9001-2000 Company, JSW Steel is one of the most cost efficient Steel
producer & leading exporter of Galvanised Steel to over 80 countries.

3|Page
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

Technology:
Research and Development activities were carried out in various
technological areas, including Beneficiation of Iron-Ore, Pelletization and
Sintering of Iron-Ore, Iron Making in Corex and Blast Furnace, Steel Making
and Casting. This has resulted in Increase in Coke Oven productivity by
about 10% without adversely affecting the coke quality, Increase in hot
metal production by 2.5%, Yield improvement by 0.25% in Hot Strip Mill
and many more. JSW has also filed for patents in the coal purification
processes and cold pellets production.
Key competence:
1. Size: The Company is the largest producer of galvanized steel (in terms
of installed capacity) in India.
2. Servicing: The Company positions itself differently in its servicing ability
in a commodity business where product differentiation is difficult.
Driven by a relationship building model, it enters only into long-term
contracts with key customers, offers superior product customization
and responds to customers’ needs with a sense of emergency.
3. Branding: The Company’s pre-coloured galvanized products were
marketed for the first time in 2007-08 under the brand name of ‘JSW
Colour on’. This initiative enables the company to command a premium
over competing products

ACCOUNTING POLICIES:

The accounting treatment for the items like Revenue Recognition,

Inventory valuation, fixed assets etc has remained consistent for the years
2006, 2007 and 2008. The change was in the Revenue Recognition policy
where in the year 2008 the following change was made: “Income from
Certified Emission Reductions (CER) is recognized as income on sale of
CER’s.” This basically meant that the revenue earned by reduction of
emission to the environment would be a source of income. We see for the
first time in the “other income” part of P&L statement an amount of Rs
111.11 crore which is explained as obtained through the “Sale of carbon

4|Page
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

credits”. This amount has been treated as miscellaneous income during

our analysis since there is no indication of how sustainable this income will
be in the future.

The annual report of 2007 talks about launching a Clean Development

Mechanism (CDM) Project, the details of which is reproduced verbatim
below:

“As a part of Clean Development Mechanism (CDM) initiatives, your

Company has developed a
100 MW Captive Power Plant using waste gases as a Clean Development
Mechanism (CDM) Project,
which was commissioned in April, 2005. This project has been registered
by CDM Executive Board
of UNFCCC on 12th January, 2007. As per the registered project design
document, the company is
eligible for a total 7673254 Certified Emission Reductions (CER’s) from
April 2005 to March 2015.
The CER’s will be issued after examination by the CDM Executive Board.”

Apart from this there were no other significant changes in the accounting
policies.

5|Page
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

FINANCIAL ANALYSIS:
DuPont Analysis:
As per the DuPont analysis, the Return on Investment is broken down into
Profit Margin and Asset Turnover Ratio to understand better the
performance of the company.

Return on investment
(ROI)

Asset Turnover Ratio

Net Profit Margin (Sales/Average Total
(PAT / Sales) Assets)

AVERAGE TOTAL
PAT SALES SALES
ASSETS

RATIOS:

Ratios 2008 2007 2006

13.81 13.84
Net Profit Margin (PAT/Sales) % % 12.77%
Asset Turnover Ratio (Sales/Average Total 0.7484 0.7754 0.6848
Assets) 8 94 38
Return on Investment (PAT/Average Total 10.33 10.73
Assets) % % 8.75%

The profit margin increases every year because of increasing PAT every
year except 2008 where there was pressure on margins due to increase in
input costs as raw material costs increased. In 2008, the Company had to
absorb a part of the un-precedented increase in cost of inputs namely; iron
ore, coking coal, coke, ferro alloys and transportation cost squeezing the
margins of the Company.

6|Page
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

Asset turnover ratio increases from 2006 to 2007 due to increase in sales
but in 2008 it falls because fixed assets rose due to commissioning of 1.3
MTPA capacity expansion project.

In 2007, PAT increases for 49.49%, so ROI increases .In 2008, ROI falls as
the average total assets increases as mentioned earlier but increase in
PAT is not proportional.

Ratios 2008 2007 2006

Return on Equity (PAT/Avg Shareholder's 27.63 29.06 27.47
funds) % % %

The ROE jumped in 2007 because PAT increased by almost 49.5% but in
2008 it comes down to 27.63% due to increase in shareholder’s funds.
Shareholder’s funds increased in 2008 due to increase in general reserves
due to amalgamation of SISCOL and owing to high profits last year.

Ratios 2008 2007 2006

Current ratio 0.7762 0.9582 0.9818
(Current Assets/Current Liabilities) 7 83 08
Quick ratio
( (Current Assets-Inventory)/Current 0.4121 0.5710 0.6518
Liabilities) 08 36 73

LiquidityRatios
1.2
1
0.8
0.6
0.4
0.2
0
2005-06 2006-07 2007-08
Current Ratio 0.77627 0.95828 0.9818
Quick Ratio 0.4121 0.571 0.6519

7|Page
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

The current ratio keeps decreasing YoY as the current liabilities increase
due to increase in sundry creditors and acceptances. This indicates that
JSW is financing its long term assets with current liabilities. In order to get
a better idea of the liquidity condition, we studied the quick ratio. The
quick ratio also falls but is much lesser than the current ratio. This shows
that a large portion of the current assets consist of the inventory and
hence are not readily liquid. The quick ratio is only 0.41 in 2008 indicating
that inventory forms a dominant part of the current assets of the company
(over 46% in 2008) and hence, the liquidity is even lesser than what the
current ratio indicates. The bulk of current liabilities are comprised of
creditors and short term borrowings. JSW needs to take a hard look at its
liquidity position.

Ratios 2008 2007 2006

Debt Turnover ratio ( Sales/Average 42.975 39.368 27.294
receivables) 88 99 18
Inventory Turnover ratio (sales/Avg 7.7808 7.3649 6.5812
inventory) 64 97 65

The debt turnover ratio rises sharply from 2006 to 2007 because JSW
implemented new terms of trades oriented towards reducing the debt
collection cycle. Domestic customers were generally dispatched finished
products only on receiving funds and international customers were
serviced through export agents against sight L/cs, minimising receivables
risk. This helped in reducing the debt turnover ratio from 13 in 2006 to 9
days in 2007 as shown below.

Ratios 2008 2007 2006

8.4931 9.2712 13.372
Debt Collection Period 36 57 82
46.909 49.558 55.460
Inventory Holding Period 96 75 47
55.403 68.833
Operating Cycle 09 58.83 28

8|Page
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

Even though the inventory rises from 2006 to 2008, the inventory turnover
ratio increases and the inventory holding period decreases because JSW
implemented better inventory management systems. Because of
reduction in inventory holding periods and improved debt collection
mechanisms, the operating cycle reduces from 68 to 55 days. This means
that the company’s funds were stuck up in receivables and inventory for a
shorter period which resulted in saving in interest, storage and other
expenses.

Ratios 2008 2007 2006

Debt Equity Ratio
((Secured + Unsecured)/Shareholders
fund) 1.021 0.815 1.086
Liabilities Equity Ratio
((Debt + Liabilities)/Shareholders funds) 1.909 1.515 2.128

Both the debt equity ratio and the liabilities equity ratio follow similar
trends. There is a fall from 2006 to 2007 followed by a rise in 2008. The
fall in 2007 is due to a rise in the Shareholder’s funds which is due to the
increased PAT, both of the current year as well as from the previous year
coming through the reserves and surplus. However, both the ratios fall
again in 2008 as the company raised money through term loans and
foreign currency loans (Foreign Currency Convertible Bonds of worth Rs.
1,295.83 crore) in order to fund its capital expansion.

Debt-EquityRatio
1.2
1.086 Ratio
1 1.021
Interest Coverage ra
0.815
0.8
expen
0.6
Debt-Equity Ratio
0.4

0.2

0
2005-06 2006-07 2007-08

9|Page
 Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

The interest coverage ratio has improved steadily with rising EBIT from
2006 to 2008.

EXCEPTIONAL ITEM:
We observed that in the year 2006, the sales of JSW dropped. In order to
cover up the fall in sales, JSW sold 44,99,400 equity shares of Rs. 10 each
of JSW Energy Ltd. (JSWEL) to
Samarth Holdings Pvt. Ltd., an associate company for a consideration of
Rs. 513.70 crores based on an independent valuer’s report. The profit on
sale of these shares amounting to Rs. 369.20 crores is included in “Other
income”. This has been classified as Exceptional Income in our analysis
and the other ratios were calculated.

COMPARISON WITH ISPAT:

Comparing the ratios of JSW with ISPAT:
JSW and ISPAT are both steel companies which have sales in the similar
range. However we see that ISPAT is not financially very sound. A look at
the debt equity ratio of ISPAT shows that it is highly leveraged and has lot
of debt on its books. This would make it very risk prone since with the
rising input costs the profitability will be affected. IPSAT though has its
liquidity current ratios comparable to that of JSW, with JSW being slightly
better off in many years. The return on investment for ISPAT is dismal
since a large chunk of the profits goes towards interest payments. The
sales of both the companies follow a trend in which there is a dip in 2006,
which can be attributed to the steel industry being affected.

On the whole ISPAT does not seem to be an attractive option for an

investor, though it is managing to clock good sales revenue.

JSW ISPAT
Liquidity Ratios 2008 2007 2006 2008 2007 2006
Current ratio (Current Assets/Current
0.78 0.96 0.98 0.69 0.81 0.84
Liabilities)
Quick ratio 0.41 0.57 0.65 0.34 0.50 0.51

10 | P a g e
 Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

((Current Assets-Inventory)/Current
Liabilities)
Earnings Per Share 95.26 80.86 55.57 -0.36 -0.81 -7.93
Return on Investment (PAT/Average 10.33 10.73 8.75% 0.29 - -
PAT/Sales 13.81
% 13.84
% 12.77 0.42
% 0.06%- 16.39
7.52%
Asset Turnover Ratio (Sales/Average % % % % 0.11% %
0.75 0.78 0.68 0.69 0.61 0.46
Total Assets)
Debt to Equity Ratio 0.98 0.75 0.94 10.66 13.17 12.69
Fixed Asset Turnover ratio ( Sales/Avg
1.31 1.27 1.07 1.00 0.87 0.69
Net asset)
Debt Turnover ratio ( Sales/Average
42.98 39.37 27.29 13.53 12.08 5.96
receivables)
Inventory Turnover ratio (sales/Avg
7.78 7.36 6.58 6.39 6.47 6.53
inventory)

CONCLUSIONS:

The financial analysis provides a lot of useful information. The financial

data available from the annual report is available as raw data which can
be converted into meaningful information through structured analysis
which reveals different patterns in the data. For example, techniques like
common sizing helps in comparing the financial information across
companies in the same sector in order to compare the allocation of
resources and the sources of revenue which in turn helps in monitoring the
health of company with reference to its competitors. For example, a
company whose income is basically due to non-operating income may not
have a sustainable profit.
Sometimes financial statements themselves give a lot of information. For
example a simple analysis of cash flow shows that JSW is on an expansion
mode where in YOY the outflow of investment activity is increasing and
shows that is on an expansion mode.
Also, financial analysis of financial statements across years helps in finding
the hidden truths and facts concealed willingly or unwillingly by the
company in its annual report.
Different stakeholders use the analysis to find information of importance
to them. For example, As investors would be interested in the profitability
ratios of the company like Return on Investment (ROI), Return on Equity

11 | P a g e
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

(ROE), Profit Margin, Asset Turnover Ratio and EPS. These ratios measure
the degree of operating success of the company and hence will give the
information whether we would be able to get a reasonable return in the
form of capital gain and dividends. They would also look at the solvency
ratios like Debt-Equity Ratio and Liability equity ratio to get information
about the risk status of the company as debt is considered more riskier
than equity.
The financial analysis of the company reveals the following strengths and
weaknesses in the operations of the company:
Strong Areas:
1. The debt turnover ratio rises sharply from 2006 to 2007 because
JSW implemented new terms of trades oriented towards reducing the
debt collection cycle. Domestic customers were generally dispatched
finished products only on receiving funds and international
customers were serviced through export agents .This helped in
reducing the debt turnover ratio from 13 in 2006 to 9 days in 2007
as shown below.
2. They also have got into selling of Carbon credits. In 2008, they sold
Rs 111.11 worth od carbon credits. This is a promising avenue in
future also.
3. They have implemented better inventory management system
which has reduced the collection period steadily over the 3 years.
4. They have been increasing expanding their capacity over the past
three years.
Weak Areas:
The current ratio keeps decreasing YoY as the current liabilities increase
due to increase in sundry creditors and acceptances. This indicates that
JSW is financing its long term assets with current liabilities. Also, the quick
ratio also falls but is much lesser than the current ratio. This shows that a
large portion of the current assets consist of the inventory and hence are
not readily liquid. The quick ratio is only 0.41 in 2008 indicating that
inventory forms a dominant part of the current assets of the company.

12 | P a g e
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

APPENDIX
Formatted Profit and Loss Statement – JSW
(Amounts in Rs. Crore)
2008 2007 2006 2005
INCOME :
12,517.8
Sales Turnover 0 9337.34 6766.09 7035.9

12,517.8
Total Income 0 9337.34 6766.09 7035.9

EXPENDITURE :
Operating Expenses 9274.31 6629.54 5081.77 4749.53
Depreciation 687.18 498.23 405.82 359.54
Total Operating Expenses 9961.49 7127.77 5487.59 5109.07

Operation Profit 2,556.31 2,209.57 1,278.50 1,926.83

Add: Non operating income 368.25 105.15 13.76 18.98

Profit before interest and tax 2,924.56 2,314.72 1292.26 1,945.81

Less: Interest Charges 440.44 399.54 360.32 469.87
Profit Before Tax 2,484.12 1,915.18 931.94 1,475.94
Less: Income Tax 755.93 623.18 339.77 602.5
Exceptional item 0 0 272.12 -3.33
1,728.1 1,292.0
Profit After Tax 9 0 864.29 870.11
Consolidate and Formatted Balance Sheet – JSW
(Amounts in Rs. Crore)
Year Mar-08 Mar-07 Mar-06 Mar-05

SOURCES OF FUNDS :

SHARE HOLDERS FUNDS

Share Capital 248.08 246.77 218.03 190.1
3,555.1 2,329.9
Reserves Total 7,140.24 4,873.38 2 7
3,773.1 2,520.
Total Shareholders Funds 7,388.32 5,120.15 5 07

SHORT TERM LIABILITIES

2,801.2 1,859.
Total Current Liabilities 4,254.05 2,611.64 5 39

LONG TERM LIABILITIES

3,893.9 3,864.
Total Long Term Liabilities 7,683.78 4,126.15 5 21

13 | P a g e
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

Deferred Tax Liability 1,251.84 1,012.66 742.07 305.49

20,577.9 12,870.6 11,210. 8,549.

Total Sources of Funds 9 0 42 16
APPLICATION OF FUNDS :

FIXED ASSETS
8,368.4 7,520.3
Gross Block 13,952.32 10,512.76 3 0
1,850.4 1,443.9
Less : Accumulated Depreciation 2,996.83 2,323.66 5 1
6,517.9 6,076.3
Net Block 10,955.49 8,189.10 8 9
10,955.4 6,517.9 6,076.
Net Fixed Assets 9 8,189.10 8 39

CURRENT ASSETS
Inventories 1,549.16 1,011.35 924.23 743.41
Sundry Debtors 337.39 245.16 229.19 266.6
Cash and Bank 339.22 337.8 98.87 122.49
Loans and Advances 842.15 549.28 979.42 761.5
Other Current Assets 18.62 342.04 513.7 0
Short Term Investments 215.75 17.06 4.88 4.88
2,750.2 1,898.
Total Current Assets 3,302.29 2,502.69 9 88

OTHER ASSETS
1,861.9
Capital Work in Progress 5,612.43 2,002.93 5 349.30
Long Term Investments 707.78 175.88 80.2 224.69
1,942.1
Total Other Assets 6,320.21 2,178.81 5 573.99

20,577.9 12,870.6 11,210. 8,549.

Total Application of Funds 9 0 42 26

Useful Ratios
Useful Calculations 2008 2007 2006
6297.1
Average Net Assets 9572.295 7353.54 85
247.89
Average Debtors (Receivables) 291.275 237.175 5
12040.5 9879.8
Average Total Assets 16724.3 1 4
Average Inventory 1280.255 967.79 833.82
Average Shareholder Funds 6254.235 4446.65 3146.6

14 | P a g e
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

Profitability Ratios 2008 2007 2006

Profit Margin /Return on Sales ( PAT/Sale) 13.81% 13.84% 12.77%
Asset Turnover Ratio (Sales/Average Total
Assets) 0.748 0.775 0.685
Return on Investment (PAT/Average Total
Assets) 10.33% 10.73% 8.75%
Return on Equity (PAT/Avg Shareholder's
funds) 27.63% 29.06% 27.47%
Basic EPS 95.26 80.86 55.57
Diluted EPS 94.18 79.62 55.57

Liquidity Ratios 2008 2007 2006

Current ratio (Current Assets/Current
Liabilities) 0.776 0.958 0.982
Quick ratio ( (Current Assets-Inventory)/Current
Liabilities) 0.412 0.571 0.652

Fixed Asset Turnover ratio ( Sales/Average Net

asset) 1.308 1.270 1.074
Debt Turnover ratio ( Sales/Average
receivables) 42.976 39.369 27.294
Inventory Turnover ratio (sales/Avg inventory) 7.781 7.365 6.581
Debt Collection Period 8.493 9.271 13.373
Inventory Holding Period 46.910 49.559 55.460
Operating Cycle 55.403 58.830 68.833

Solvency Ratios 2008 2007 2006

Debt Equity Ratio
( (Secured + Unsecured) / Shareholders
funds ) 0.984 0.746 0.940
Liabilities Equity Ratio
( (Debt + Liabilities) / Shareholders funds ) 1.909 1.515 2.128
Interest Coverage ratios(PBIT/Interest expense) 6.640 5.793 3.586

Cash Flow Statement - JSW

CASH FLOW STATEMENT for year ended 31 March
Particulars 2008 2007 2006 2005
Cash and Cash Equivalents at Beginning
of the year 265.55 49.08 43.23 45.69
3,552.7 2,822.2 1,574.9 1,998.4
Net Cash from Operating Activities 0 6 6 0
- - -
5,636.3 2,244.5 1,304.1
Net Cash Used in Investing Activities 6 5 1 -409.52
15 | P a g e
Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

-
2,124.9 1,594.5
Net Cash Used in Financing Activities 3 -384.39 -265 9
Net Inc/(Dec) in Cash and Cash
Equivalent 41.27 193.32 5.85 -5.71
Cash and Cash Equivalents at End of the
year 306.82 242.40 49.08 39.98
Op. Profit before Working Capital 3,338.8 2,793.6 1,669.2 1218.9
Changes 4 9 8 7

16 | P a g e
 Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

TREND ANALYSIS

Profit & Loss Statements of JSW

2008 2007 2006 2005 2008 2007 2006
12,517. 9337.3 6766.0
Sales Turnover 80 4 9 7035.9 34.06% 38.00% -3.83%
Total Operating 9961.4 7127.7 5487.5 5109.0
Expenses 9 7 9 7 39.76% 29.89% 7.41%
2,556.3 2,209.5 1,278.5 1,926.8
Operation Profit 1 7 0 3 15.69% 72.83% -33.65%
Add: Non operating 250.21 - 1917.70
income 368.25 105.15 382.96 18.98 % 72.54% %
Profit before interest 2,924.5 2,314.7 1,661.4 1,945.8
and tax 6 2 6 1 26.35% 39.32% -14.61%
Less: Interest
Charges 440.44 399.54 360.32 469.87 10.24% 10.88% -23.31%
2,484.1 1,915.1 1,301.1 1,475.9
Profit Before Tax 2 8 4 4 29.71% 47.19% -11.84%
Less: Income Tax 755.93 623.18 436.85 602.5 21.30% 42.65% -27.49%
Exceptional item 0 0 0 -3.33
1,728. 1,292.
Profit After Tax 19 00 864.29 870.11 33.76% 49.49% -0.67%

Balance Sheet
Mar-
Year (Rs in Crs) Mar-08 Mar-07 Mar-06 05 2008 2007 2006

SOURCES OF FUNDS :
Share Capital 248.08 246.77 218.03 190.1 0.53% 13.18% 14.69%
7,140.2 4,873.3 3,555.1 2,329.9
Reserves Total 4 8 2 7 46.52% 37.08% 52.58%
Total Shareholders 7,388. 5,120. 3,773. 2,520.
Funds 32 15 15 07 44.30% 35.70% 49.72%
Total Current 4,254. 2,611. 2,801. 1,859.
Liabilities 05 64 25 39 62.89% -6.77% 50.65%
Total Long Tem 7,683. 4,126. 3,893. 3,864.
Liabilities 78 15 95 21 86.22% 5.96% 0.77%
Deferred Tax 1,251. 1,012.
Liability 84 66 742.07 305.49 23.62% 36.46% 142.91%
Total Sources of 20,577 12,870 11,210 8,549.
Funds .99 .60 .42 16 59.88% 14.81% 31.13%
APPLICATION OF FUNDS :
FIXED ASSETS
13,952. 10,512. 8,368.4 7,520.3
Gross Block 32 76 3 0 32.72% 25.62% 11.28%
Less : Accumulated 2,996.8 2,323.6 1,850.4 1,443.9
Depreciation 3 6 5 1 28.97% 25.57% 28.16%
10,955. 8,189.1 6,517.9 6,076.3
Net Block 49 0 8 9 33.78% 25.64% 7.27%
Net Fixed Assets 10,955 8,189. 6,517. 6,076. 33.78% 25.64% 7.27%

17 | P a g e
 Financial Accounting – Financial Statement Analysis JSW vs. ISPAT

.49 10 98 39

CURRENT ASSETS
1,549.1 1,011.3
Inventories 6 5 924.23 743.41 53.18% 9.43% 24.32%
Sundry Debtors 337.39 245.16 229.19 266.6 37.62% 6.97% -14.03%
241.66
Cash and Bank 339.22 337.8 98.87 122.49 0.42% % -19.28%
-
Loans and Advances 842.15 549.28 979.42 761.5 53.32% 43.92% 28.62%
- -
Other Current Assets 18.62 342.04 513.7 0 94.56% 33.42%
1164.6 249.59
Short Term Investments 215.75 17.06 4.88 4.88 5% % 0.00%
3,302. 2,502. 2,750. 1,898.
Total Current Assets 29 69 29 88 31.95% -9.00% 44.84%

OTHER ASSETS
Capital Work in 5,612.4 2,002.9 1,861.9 180.21
Progress 3 3 5 349.30 % 7.57% 433.05%
302.42 119.30
Long Term Investments 707.78 175.88 80.2 224.69 % % -64.31%
6,320. 2,178. 1,942. 190.08
Total Other Assets 21 81 15 573.99 % 12.19% 238.36%

Total Application of 20,577 12,870 11,210 8,549.

Funds .99 .60 .42 26 59.88% 14.81% 31.13%

18 | P a g e