SUBJECT- CORPORATE FINACE

NAME- NIRAJ .R. ẨNGARA

ROLLNO- 14
SYBFM
 INTRODUCTION
o
Jindal Steel & Power (JSPL), part of the Jindal Group, is engaged in steel manufacturing, power
generation, coal and iron-ore mining, and exploration and mining of minerals and metals. JSPL
operates in India. It is headquartered in New Delhi, India and employs about 15,000 people. The
company recorded revenues of INR109,133.7 million (approximately $2,381.3 million) in the
financial year ended March 2009 (FY2009), an increase of 97% over FY2008. The operating profit of
the company was INR42,677.5 million (approximately $931.2 million) in FY2009, compared with
INR17,737.3 million (approximately $387 million) in FY2008. The net profit was INR30,457.2
million (approximately $664.6 million) in FY2009, compared with INR 12,740.2 million
(approximately $278 million) in FY2008.
o HISTORY
o 1998
o The name of the Company has been changed from Orbit Strips Ltd To Jindal Steel & Power Ltd. on
12th June.

o 1999
o Shri O.P. Jindal, Shri Ratan Jindal and Shri M.L. Gupta were appointed as Additional Directors of the
Company in terms of Section 260 of the Companies Act, 1956 and Article 117 of Articles of
o Association of the Company.

o 2000
o The company raised 10.5% Redeemable Cumulative Non-Convertible Preference Shares aggregating to
Rs 10 crores, on private placement basis. Naveen Jindal-controlled Jindal Steel & Power Ltd (JSPL),
today announced the launch of another company Infovergix Technologies
o Ltd., which will provide information technology services and solutions.
- The Company has issued 14% 20,00,000 Cumulative Redeemable
o Non-Convertible Preference Shares of Rs. 100/- each aggregating to Rs.20 Crores on private Placement
basis.

o 2001
- The Company is setting up a Coal Washery of 2.5 million MT capacity at the coal mine to meet
the additional requirement of coal for the Sponge Iron Plant.
- The Company has introduced a new value added product, Alloy Steel
o Rounds, suitable for manufacture of seamless tubes.

o 2002
o -Jindal Steel & Power Ltd has informed that the Board of Directors appointed Shri M L Gupta as
Wholetime Director of the company wef December 23, 2002 in place of Shri S N Singh who has
resigned from the Directorship of the company from November 15, 2002.

o 2003
o -Jindal Steel & Power, a OP Jindal Group has converted Rs.200cr of debt to Foreign
o currency loan.
 o 2004
o -Jindal Steel & Power Ltd. has appointed Mr. Sushil K Maroo a Wholetime Director of the company
from May 20, 2004

o 2005
o -Jindal Steel & Power signs MOU with Government of Chhattisgarh onJanuary 07, 2005
o -Jindal Steel signs MoU with Jharkand Government on July 05, 2005

o 2006
o -Bolivia inks JV deal with Jindal for El Mutun development-Jindal Steel & Power Ltd has appointed
Shri. Suresh Baid as an Additional Director (independent) on the Board of the Company.

o 2007
o -Jindal Steel & Power Ltd has has appointed Shri A K Purwar, former Chairman, State Bank of India
as an Independent Director on the Board of the Company with immediate effect.

o 2008
- The Company has splits its face value from Rs5/- to Rs1/
o -Jindal Steel & Power Ltd has informed that Jindal Power Ltd (JPL), subsidiary of the Company, on
September 05, 2008 has commissioned fourth power generating unit of 250 MW. With this, the
subsidiary Company has completed the 1000 MW power project and has now the
o capacity to generate 1000 MW power from this plant.

o 2009
- Jindal Steel & Power Ltd has informed BSE that the Board of Directors has, vide resolution
passed through circulation on January14, 2009, appointed Shri. Ashok K Mohapatra, Shri.
Haigreve Khaitan, Shri. Hardip Singh Wirk and Shri. Rahul Mehra as independent
o directors of the Company with effect from January 14, 2009.

BalanceSheet Of The Company.

Balance Sheet of Jindal Steel . ------------------- in Rs. Cr. -------------------
PẢTICULARS Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths

Total Share Capital 15.40 15.47 93.12

Equity Share Capital 15.40 15.47 93.12
Share Application Money 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00
Reserves 3,740.98 5,399.85 6,652.88
Revaluation Reserves 0.00 0.00 0.00
Networth 3,756.38 5,415.32 6,746.00
 Secured Loans 1,783.39 2,105.49 4,235.16
Unsecured Loans 2,079.96 2,857.16 4,148.10
Total Debt 3,863.35 4,962.65 8,383.26
Total Liabilities 7,619.73 10,377.97 15,129.26
Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths

Gross Block 5,918.94 7,362.90 8,814.21

Less: Accum. Depreciation 1,183.11 1,617.00 2,110.15
Net Block 4,735.83 5,745.90 6,704.06
Capital Work in Progress 660.48 2,318.01 6,435.28
Investments 1,036.19 1,233.40 1,067.11
Inventories 980.56 1,209.96 1,328.50
Sundry Debtors 287.38 391.46 622.36
Cash and Bank Balance 92.35 104.86 60.10
Total Current Assets 1,360.29 1,706.28 2,010.96
Loans and Advances 1,453.72 3,278.90 3,865.94
Fixed Deposits 485.56 204.10 0.00
Total CA, Loans & Advances 3,299.57 5,189.28 5,876.90
Deffered Credit 0.00 0.00 0.00
Current Liabilities 1,533.54 3,125.83 3,613.40
Provisions 581.94 985.81 1,343.71
Total CL & Provisions 2,115.48 4,111.64 4,957.11
Net Current Assets 1,184.09 1,077.64 919.79
Miscellaneous Expenses 3.14 3.02 3.02
Total Assets 7,619.73 10,377.97 15,129.26
Contingent Liabilities 5,476.85 4,967.08 8,733.08
Book Value (Rs) 243.98 350.16 72.44

P&L Account
Profit & Loss account of Jindal Steel ------------------- in Rs. Cr. -------------------
Mar
Mar '08 Mar '09 '10
12 mths 12 mths 12 mths

Sales Turnover 6,131.63 8,433.81 7,895.58

Excise  Duty 763.49 755.98 548.14
Net Sales 5,368.14 7,677.83 7,347.44
Other Income -87.26 54.68 117.31
Stock Adjustments 202.89 73.10 40.06
Total Income 5,483.77 7,805.61 7,504.81
Raw Materials 1,930.29 3,492.52 3,219.44
Power &  Fuel Cost 407.91 414.53 391.80
Employee Cost 132.20 181.46 214.87
Other Manufacturing Expenses 262.96 359.31 446.60
Selling and Admin Expenses 376.00 499.14 25.32
Miscellaneous Expenses 165.76 166.11 594.65
Preoperative Exp Capitalised 0.00 0.00 0.00
Total Expenses 3,275.12 5,113.07 4,892.68
Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths
Operating Profit 2,295.91 2,637.86 2,494.82
PBDIT 2,208.65 2,692.54 2,612.13
Interest 243.02 267.89 192.47
PBDT 1,965.63 2,424.65 2,419.66
Depreciation 451.51 433.03 512.16
Other Written Off 0.27 0.20 0.00
Profit Before Tax 1,513.85 1,991.42 1,907.50
Extra-ordinary items -11.34 10.46 -0.04
PBT (Post Extra-ord Items) 1,502.51 2,001.88 1,907.46
Tax 265.55 465.40 427.78
Reported Net Profit 1,236.96 1,536.48 1,479.68
Total Value Addition 1,344.83 1,620.55 1,673.24
Preference Dividend 0.00 0.00 0.00
Equity Dividend 62.02 85.33 116.52
Corporate Dividend Tax 10.55 0.00 4.28

Shares in issue (lakhs) 1,539.61 1,546.53 9,312.34

Earning Per Share (Rs) 80.34 99.35 15.89
Equity Dividend (%) 400.00 550.00 125.00
Book Value (Rs) 243.98 350.16 72.44

Key Financial Ratios of Jindal Steel &

------------------- in Rs. Cr. -------------------
Power
 Mar
Mar '07 Mar '08 Mar '09 Mar '10
'06

Investment Valuation Ratios

Face Value 5.00 5.00 1.00 1.00 1.00
Dividend Per Share 15.00 18.00 4.00 5.50 1.25
335.4
Operating Profit Per Share (Rs) 457.85 149.12 170.57 26.79
1
833.0
Net Operating Profit Per Share (Rs) 1,144.14 348.67 496.46 78.90
1
564.7
Free Reserves Per Share (Rs) 773.29 230.73 327.99 -0.03
9
Bonus in Equity Capital -- -- -- -- 83.30
Profitability Ratios
Operating Profit Margin(%) 40.26 40.01 42.76 34.35 34.78
Profit Before Interest And Tax Margin(%) 31.40 30.15 33.99 27.98 27.05
Gross Profit Margin(%) 31.72 30.46 34.35 28.71 27.80
Cash Profit Margin(%) 30.71 28.96 33.99 26.71 26.49
Adjusted Cash Margin(%) 30.71 28.96 33.99 26.71 26.68
Net Profit Margin(%) 22.11 19.75 22.79 19.50 19.82
Adjusted Net Profit Margin(%) 22.11 19.75 22.79 19.50 19.59
Return On Capital Employed(%) 18.28 18.47 24.95 23.16 14.86
Return On Net Worth(%) 31.07 28.19 32.95 28.38 21.94
Adjusted Return on Net Worth(%) 31.26 27.83 37.11 30.87 21.94
598.8
Return on Assets Excluding Revaluations 809.78 243.78 349.96 72.41
4
598.8
Return on Assets Including Revaluations 809.78 243.78 349.96 72.41
4
Return on Long Term Funds(%) 20.55 21.54 26.60 25.01 13.88
Liquidity And Solvency Ratios
Current Ratio 0.83 0.68 1.25 1.04 1.19
Quick Ratio 0.78 0.73 1.10 0.95 0.92
Debt Equity Ratio 1.49 1.40 1.03 0.92 1.24
Long Term Debt Equity Ratio 1.21 1.06 0.90 0.77 0.84
Debt Coverage Ratios
Interest Cover 8.87 6.97 8.45 10.33 7.91
Total Debt to Owners Fund 1.49 1.40 1.03 0.92 1.24
Financial Charges Coverage Ratio 9.80 8.35 9.68 10.59 13.57
Financial Charges Coverage Ratio Post Tax 8.34 7.00 7.95 8.35 11.35
Management Efficiency Ratios
Inventory Turnover Ratio 7.55 6.99 7.01 9.08 8.05
Debtors Turnover Ratio 10.86 11.37 17.67 22.62 14.49
Investments Turnover Ratio 7.55 6.99 7.01 9.08 5.94
Fixed Assets Turnover Ratio 0.79 0.71 0.91 1.04 0.83
Total Assets Turnover Ratio 0.56 0.59 0.70 0.74 0.49
Asset Turnover Ratio 0.79 0.71 0.91 1.04 0.83
Average Raw Material Holding 67.56 95.86 85.56 40.04 --
Average Finished Goods Held 56.74 48.31 50.88 37.94 --
Number of Days In Working Capital 43.80 21.08 79.41 50.53 45.07
Profit & Loss Account Ratios
Material Cost Composition 28.09 31.94 35.95 45.48 43.81
Imported Composition of Raw Materials
-- -- 46.77 31.97 46.23
Consumed
Selling Distribution Cost Composition 8.66 7.84 4.93 4.26 --
Expenses as Composition of Total Sales 14.49 16.82 12.16 13.30 5.58
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 9.19 9.14 5.86 5.55 8.16
Dividend Payout Ratio Cash Profit 6.64 6.18 4.29 4.33 6.06
Earning Retention Ratio 90.87 90.74 94.79 94.90 91.84
Cash Earning Retention Ratio 93.39 93.77 96.07 95.95 93.94
AdjustedCash Flow Times 3.45 3.40 2.09 2.36 4.21

Mar
Mar '07 Mar '08 Mar '09 Mar '10
'06

186.0
Earnings Per Share 228.30 80.34 99.35 15.89
7
599.0
Book Value 810.83 243.98 350.16 72.44
8

Source : Religar

Competition Faced By Other Companies

Balance Sheet ------------------- in Rs. Cr. -------------------
Jindal Adhunik
Monnet Ispat Jai Balaji Ind
Steel Metalik
Mar
Mar '09 Mar '10 Mar '10
'10
Sources Of Funds
Total Share Capital 93.12 47.96 63.77 123.50
Equity Share Capital 93.12 47.96 63.77 123.50
Share Application Money 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00
6,652.8
Reserves 1,155.72 839.24 492.00
8
Revaluation Reserves 0.00 0.00 0.00 0.00
6,746.0
Networth 1,203.68 903.01 615.50
0
4,235.1
Secured Loans 1,016.85 1,584.80 972.70
6
4,148.1
Unsecured Loans 308.33 7.35 245.79
0
8,383.2
Total Debt 1,325.18 1,592.15 1,218.49
6
15,129.
Total Liabilities 2,528.86 2,495.16 1,833.99
26
Jindal Adhunik
Monnet Ispat Jai Balaji Ind
Steel Metalik
Mar
Mar '09 Mar '10 Mar '10
'10
Application Of Funds
8,814.2
Gross Block 1,366.45 1,399.32 1,456.77
1
2,110.1
Less: Accum. Depreciation 239.57 206.17 146.82
5
6,704.0
Net Block 1,126.88 1,193.15 1,309.95
6
6,435.2
Capital Work in Progress 309.66 616.38 38.06
8
1,067.1
Investments 215.63 82.02 206.07
1
1,328.5
Inventories 184.46 420.19 446.95
0
Sundry Debtors 622.36 109.73 337.58 206.15
Cash and Bank Balance 60.10 123.84 3.92 99.54
2,010.9
Total Current Assets 418.03 761.69 752.64
6
3,865.9
Loans and Advances 682.71 327.15 150.91
4
Fixed Deposits 0.00 121.75 16.75 0.00
5,876.9
Total CA, Loans & Advances 1,222.49 1,105.59 903.55
0
Deffered Credit 0.00 0.00 0.00 0.00
3,613.4
Current Liabilities 285.87 494.55 602.45
0
1,343.7
Provisions 59.93 7.42 21.20
1
 4,957.1
Total CL & Provisions 345.80 501.97 623.65
1
Net Current Assets 919.79 876.69 603.62 279.90
Miscellaneous Expenses 3.02 0.00 0.00 0.00
15,129.
Total Assets 2,528.86 2,495.17 1,833.98
26
8,733.0
Contingent Liabilities 143.48 261.20 46.38
8
Book Value (Rs) 72.44 250.98 141.58 49.84

Conclusion
 There is a decline in the net profit from the previous year i.e 1536.48 cr to 1479.68
 EPS has also decline 6 times from 99.35 to 15.81 this due to heavy borrowings
 Networth ò the company hás increased from 5415.31 to 6746.cr around 20 percent growth.
 Debt òf the company has increase 4962.65 to 8383.2.i.e almost double from the previous financial
year
 Total liablites have increase 33.3 percent
 Investment decline from 1233.40 to 1067.4 from the previous year .
 Stock hás increased by 10 percent
 Booked value ò the company has decline 5times from previous year .
 The company face strong competition from Monnet Ispat, JaiBalaji ind ,Adhunik Metalik.
 Curently it ís traded at 699.on bse .
 The companys all time high is 752.
Biblography
 www.moneycontrol.com
 www.google.com
 www.jindalsteel.com
 www.bseindia.com
 www.economictimes.com