GROUP PROJECT ON

“WORKING CAPITAL ANALYSIS/ LEVERAGE AND

PROFITABILITY ANALYSIS OF STEEL INDUSTRY”

OF THE COURSE
CORPORATE ACCOUNTING – II

SUBMITTED BY:
Anuj Desai (IC201210)
Arpit Bilochi (IC201211)
Pratik Choraria (IC201263)
Shreyansh Kanthed (IC201279)

B.COM (HONS.) PROGRAMME: SEMESTER IV

SUBMITTED TO DR. SUMITA SHROFF GOYAL

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 ACKNOWLEDGEMENT

Firstly, we would like to thank our teacher and guide

DR. SUMITA SHROFF GOYAL gave us her valuable suggestions and ideas
when we needed them. She encouraged us to work on this project.
We would also thank to all of them who helped us to complete this project. We are
also grateful to our college for allowing us to work with them and providing us
with the necessary resources for the project We would also thank to all of them
who helped us to complete this project.
We would like to thank each other for helping each other and coordinating with
each other. This project would not be completed without the compliance of all the
group members. We are immensely grateful to all involved in this project as
without their inspiration and valuable suggestion it would not have been possible
to develop the project within the prescribed time.

with sincere thanks,

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 ABSTRACT
The Group Assignment Report and Presentation assignment requires us to research
and apply the concepts introduced in Corporate Accounting - 2 to real-life cases to
gain practical understanding. The project required us to prepare and submit a
written report and to present a summary of their findings through the presentation.
In this project, we took five previous year balance sheets as well as the profit and
loss statement of the five listed companies. Then we found out the Capital structure
ratio also the profitability ratio from the balance sheet as well from the profit and
loss statement. From this ratio, we found out whether the company growth is
downward or upwards by analysing the ratio which we found out by the given
formula in the Guideline given by the ma’am also we found out the whether there
was an increase or decrease in the profit of the company. After all the analysing
part we comment on the steel industry.

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 CONTENT

TOPIC PAGE NO.

INTRODUCTION 5

CAPITAL STRUCTURE 10
RATIOS

PROFITABILITY 28
RATIOS

CONCLUSION 38

BIBLIOGRAPHY 39

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 INTRODUCTION

As of October 2021, India was the world’s second-largest producer of crude steel,
with an output of 9.8 MT. In FY21, the production of crude steel and finished steel
stood a 102.49 MT and 94.66 MT, respectively. In FY22, crude steel production in
India is estimated to increase by 18%, to reach 120 million tonnes, driven by rising
demand from customers. The growth in the Indian steel sector has been driven by
domestic availability of raw materials such as iron ore and cost-effective labour.
Consequently, the steel sector has been a major contributor to India’s
manufacturing output.

The Indian steel industry is modern with state-of-the-art steel mills. It has always
strived for continuous modernisation of older plants and up-gradation to higher
energy efficiency levels.

Indian steel industry is classified into three categories - major producers, main
producers and secondary producers.

In FY21, the production of crude steel and finished steel stood a 102.49 MT and
94.66 MT, respectively. According to CARE Ratings, crude steel production is
expected to reach 112-114 MT (million tonne), an increase of 8-9% YoY in FY22.
The consumption of finished steel stood at 93.43 MT in FY21. Between April 2021
and September 2021, finished steel consumption stood at 49.11 MT.In June 2021,
SAIL’s crude steel production stood at 1.30 MT and saleable steel production was
1.27 MT.

Exports and imports of finished steel stood at 7.75 MT and 2.37 MT, respectively,
in FY22 (until September 2021). In April 2021, India’s export rose by 121.6%
YoY, compared with 2020. In FY20, India exported 8.24 MT of finished steel.

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The companies we have chosen in the steel industries are:

1. Tata Steel Ltd.

Tata Steel Limited is an Indian multinational

steel-making company based in Jamshedpur, Jharkhand, and is headquartered in
Mumbai, Maharashtra, India. It is a subsidiary of the Tata Group.

Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata Steel is
among the top steel producing companies in the world with an annual crude steel
capacity of 34 million tonnes per annum. It is one of the world's most
geographically-diversified steel producers, with operations and commercial
presence across the world. The group (excluding SEA operations) recorded a
consolidated turnover of US$19.7 billion in the financial year ending 31 March
2020. It is the second largest steel company in India (measured by domestic
production) with an annual capacity of 13 million tonnes after Steel Authority of
India Ltd. (SAIL).

Tata Steel operates in 26 countries with key operations in India, Netherlands and
The United Kingdom, and employs around 80,500 people. Its largest plant (10
MTPA capacity) is located in Jamshedpur, Jharkhand. In 2007, Tata Steel acquired
the UK-based steel maker Corus. It was ranked 486th in the 2014 Fortune Global

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500 ranking of the world's biggest corporations.[6] It was the seventh most
valuable Indian brand of 2013 according to Brand Finance.

2. JSW Steel Ltd.

JSW Steel Ltd is an Indian multinational steel making

company based in the city of Mumbai, India, a subsidiary of JSW Group.

After the merger of ISPAT steel, JSW Steel has become India's second largest
private sector steel company. The current installed capacity of the company stands
at 18 MTPA. A $13 billion conglomerate, with presence across India, USA, South
America & Africa, the JSW Group is a part of the O.P. Jindal Group with strong
footprints across core economic sectors, namely, Steel, Energy, Infrastructure,
Cement, Ventures and Sports. JSW's history can be traced back to 1982, when the
Jindal Group acquired Piramal Steel Limited, which operated a mini steel mill at
Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company (JISCO).

Soon after the acquisition the group set up its first steel plant in 1982 at Vasind
near Mumbai. Jindal Vijayanagar Steel Ltd. (JVSL) was set up in 1994, with its
plant located at Toranagallu in Ballari, Karnataka, the heart of the high-grade iron
ore belt and spread over 10,000 acres (40km²) of land. Located 340 kilometers
from Bengaluru, it is well connected to both the Goa and Chennai Port. In 2005,
JISCO and JVSL merged to form JSW Steel Ltd. The JSW Ballari plant is the
world's sixth largest steel plant.

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.
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 3. Steel Authority of India (SAIL) Ltd.

Steel Authority of India Limited (SAIL) is a government owned steel producer

based in New Delhi, India. It is under the ownership of Ministry of Steel,
Government of India with an annual turnover of INR 68,452 Crore (US$9.32
billion) for fiscal year 2020–21. Incorporated on 24 January 1973, SAIL has
62,620 employees (as of 1 February 2022). With an annual production of 16.30
million metric tons, SAIL is the 20th largest steel producer in the world and the
largest in India. The Hot Metal production capacity of the company will further
increase and is expected to reach a level of 50 million tonnes per annum by 2025.
Smt Soma Mondal is the current Chairman of SAIL.

SAIL operates and owns five integrated steel plants at Bhilai, Rourkela, Durgapur,
Bokaro and Burnpur (Asansol) and three special steel plants at Salem, Durgapur
and Bhadravathi. It also owns a Ferro Alloy plant at Chandrapur. As a part of its
global ambition, the company is undergoing a massive expansion and
modernisation programme involving upgrading and building new facilities with
emphasis on state of the art green technology. According to a recent survey, SAIL
is one of India's fastest growing Public Sector Units. Besides, it has R&D Centre
for Iron & Steel (RDCIS), Centre for Engineering in Ranchi, Jharkhand.

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 4. National Mineral Development Corporation (NMDC) Ltd.

NMDC Limited, (formerly National Mineral Development Corporation), is a

government owned mineral producer. It is under the ownership of Ministry of
Steel, Government of India.

It is involved in the exploration of iron ore, copper, rock phosphate, limestone,

dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, etc.

It is India's largest iron ore producer and exporter, producing more than 35 million
tonnes of iron ore from three mechanized mines in Chhattisgarh and Karnataka. It
also operates the only mechanized diamond mine in the country at Panna in
Madhya Pradesh.

Incorporated in 1958 as a Government of India public enterprise, NMDC is India’s

largest producer of iron ore. Since inception, the corporation under the
administrative control of the Ministry of Steel, has been involved in the exploration
of a wide range of minerals including copper, rock phosphate, limestone,
magnesite, diamond, tungsten and beach sands amongst others in some of the most
remote corners of the country.

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 CAPITAL STRUCTURE RATIOS

 Short Term Debt / Total Assets

The short-term debt to asset ratio is very important in determining the financial risk
of a company. A ratio greater than 1 indicates that a significant portion of assets is
funded with debt and that the company has a higher.
TATA STEEL

We have numbers of 5 different years’

short-term debt to total asset ratio of Tata
Steel.
The ratios are decreasing which shows
that the Companies debt are continuously
increasing but the ratios are less than 0.5
thus we can say that companies have
enough assets to repay short term debts.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.038666414 0.076609385 0.046245267 0.075730053 0.105739095

SAIL

At the time of march 2017 company had

high short term debts after that period
company’s short term debt to assets was
decreasing from 0.18 to 0.10 and 0.09
respectively During the march 2018 and
march 2019. After that period company’s
ratio is stagnant near 0.13.

YEAR MARCH MARCH MARCH MARCH MARCH

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 2021 2020 2019 2018 2017
RATIO 0.132920662 0.131104462 0.090131519 0.106065637 0.184109983
NMDC

We can see consistent volatility in the

ratio of NMDC ltd. Between the march
2017 and march 2021 there was ups
and down in the ratio of short term debt
to total assets ratio.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.013477889 0.0631543 0.0551108 0.023658 0.05541

JSW

Company’s short term debt during march

2017 is net zero that’s why company’s short
term debt to assets ratio is zero. After that
year in 2018, 2019 and 2020 company’s
short term liabilities are rapidly increased.

YEAR MARCH MARCH 2020 MARCH 2019 MARCH MARCH

2021 2018 2017
RATIO 0.03921061 0.018072545 0.012182503 0.01743001 0

 Long Term Debt /Net worth

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Long Term Debt to Net Worth ratio tells us about the company’s long-term debt
against its net worth.

TATA STEEL

During the initial years company’s

Long-term debt to net worth ratio is bad
but year by year company’s debt is
decreasing which shows the increase
in companies net profitability and
during the recent years the ratio is less
than 1 but still company have huge
amount of debt. Companies long term
debt is near to companies net worth.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.934205109 1.235574932 1.126991842 1.17768109 1.624064268

SAIL

In the march 2017 company’s long term

debt to assets ratio is near to 0.51 and
during the period of the covid-19
company’s long term debt to assets ratio
is increased near to 0.81, which is again
decreased in 2021 to 0.43. company’s
debt is higher than the normal which
shows the higher risk for investors.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.434434438 0.832566374 0.776939305 0.805949983 0.515289155

JSW

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 Company’s long term debt to assets
ratio is higher during the FY 2017 ,
after FY 2017 debt is decreasing
but company have more long term
debt than the total assets of the
company. Ratio more than 1 shows
the higher risk of being solvent and
unable to repay the debt.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 1.077711561 1.2400899 0.8634736 1.152139 1.447078

NMDC

NMDC have great stats for the long

term debt and total assets ratio
company’s long term debt is around
the net zero which is the great sign of
company’s financial years. During the
march 2021 company’s debt to assets
ratio is 0.018 which shows low level of
long term debt in the company.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.018276724 0 0 0 0

 Long term debt / (Net worth + Long term debt)

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Long Term Debt to Long Term Debt + Net Worth it determines the companies
long term debt against is net worth with long term debt

TATA STEEL

Long term debt/ (Long term+ Net worth) of

tata steel is initially 0.62 which is
decreasing to 0.48 in march 2021 the
leverage ratio of company is diminishing in
a very low rate.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.482991749 0.552687774 0.529852452 0.540795939 0.618911773

SAIL

SAIL LTD have average leverage

around 0.4 which shows the
moderate financial condition of the
company. During the initial 5 years
company’s ratio is increasing but in
FY 2021 ratio is decreased.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.302861132 0.454317173 0.437234577 0.446274809 0.34005995

JSW

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 JSW steel have higher level of long
term debt to long term debt = net worth
ratio. Company’s long term debt is
constantly floating more than the 0.5
which shows that company doesn’t
have enough assets to repay the debt.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.518701239 0.5535894 0.4633678 0.535346 0.591349

NMDC

NMDC have great stats for the long

term debt and total assets ratio
company’s long term debt is around
the net zero which is the great sign of
company’s financial years. During the
march 2021 company’s debt to assets
ratio is 0.017 which shows low level of
long term debt in the company only
have 0.5% debt of its assets.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.017948681 0 0 0 0

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  Long term borrowing / Short term borrowing
This ratio helps to find the Long-Term Borrowing of a Company against it short-
term borrowing

TATA STEEL

The ratio of long-term borrowing to short term

borrowing shows the rational relationship
between long term and short-term debt, In the
year March 2021, ratio is 7.63 which shows
that long term debt is 7 times short term
borrowing. In the initial year this ratio is 3.5
times than short-term borrowing which shows
that companies long term borrowings are
doubled during the last 5 years.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 7.62831341 4.905265611 7.437709219 4.582259468 3.493120945

SAIL

SAIL limited have volatile ratio of long

term borrowings to short term
borrowing. During the FY 2017 and
FY 2021 company have same
amount of short term borrowings and
long term borrowings. Which is
doubled during the FY 2018 to FY
2020.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 1.244525635 2.076827529 2.897377723 2.431916186 0.963379673

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JSW

JSW STEEL have 25 times more

long term borrowings than the short
term borrowings. During FY 2017
which was situated at the 6 times
which is increased 4 times during the
period of FY 2018 to FY 2021.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 24.87793897 5.3661261 4.6827728 14.57189 6.641262

NMDC

Due to not having long term

borrowings during the years we can
not compare the stats of the long
term borrowings to short term
borrowings ratio.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.37735836 0 0 0 #DIV/0!

 Total debt / Total Assests

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Total debt to total assets is a leverage ratio that defines the total amount of debt
relative to assets owned by a company. This information can reflect how
financially stable a company is. The higher the ratio, the higher the degree of
leverage and, consequently, the higher the risk of investing in that company

TATA STEEL

The ratio of total debt to total assets are

0.47, 0.42, 0.39, 0.45 respectively during the
4 years. Which shows the stagnant mindset
of the company is to maintain the level of
debt according to assets and in the marc
2021 ratio is 0.33 which shows the uncertain
growth in steel sector.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.333625935 0.452398765 0.390204116 0.422744808 0.475098544

SAIL

Sail ltd ‘s total assets to debt ratio is

fluctuating between 0.36 to 0.29
which can be the idle situation for the
company because company have 3
times more assets to repay its debts.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.298343834 0.403385819 0.351276575 0.364008376 0.361477798

JSW

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 Company’s total debt to total assets
ratio is between 1.66 to 1.12 during
the period of the FY 2017 to FY
2021. Debt to assets ratio is
decreasing but still it is at the higher
level than the risk free level of the
ratio.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 1.121031531 1.4711859 1.0478672 1.231205 1.66497

NMDC

NMDC ltd have less than 5% of total

debt to its total assets which shows
the great financial condition of the
company. Company have more than
enough money to clear its debt and
be the debt free company. It can be
the idle and risk free company for the
investors to invest their money.

YEAR MARCH 2021 MARCH 2020 MARCH 2019 MARCH MARCH

2018 2017
RATIO 0.054007062 0.018072545 0.012182503 0.01743001 0
 Total Liabilities / Total Assets

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Total Liabilities to Total Assets tells us about the liabilities of company against its
assets. It is preferable that the company should have a lower ratio

TATA STEEL

In spite of being decreased in last 5

years from 0.77 to 0.68 which shows
the higher percentage of liabilities that
is nearly 68% of total assets

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.68426685 0.695858688 0.694799167 0.705340642 0.772570916

SAIL

SAIL ltd . doesn’t have fluctuating

ratio of total liabilities to total assets
ratio. Company’s ratio is stagnant
during the period of time. Company
have enough money to repay the
debt. Ratio is more than 0.5 it shows
the good financial condition of the
company.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.619221781 0.672961382 0.663879721 0.679951927 0.655789738
NMDC

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 NMDC have enough assets to repay
the debts. . It can be the idle and risk
free company for the investors to
invest their money because in FY
company have 3 times more money
than the total liabilities of the
company.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 3 0.7267183 0.7011243 0.700776 0.7457

JSW

JSW had worst condition because its

ratio of total liabilities to total assets is
less than 0.5 around 0.12 to 0.19. in
spite of rising continuously , we can
not say that company is at the good
financial condition.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.190421015 0.115461761 0.128242966 0.148442804 0.123568958

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  Total Debt / Net Worth
Total Debt to Net Worth is leverage ratio that defines the total debt relative to net
worth of the company. This helps us in to know that the company should have an
ability to pay off its debt obligations against its net worth. The standard ratio
should be less than 0.4.

TATA STEEL

In march 2017 the ratio is 2.08 which

shows poor financial condition of
company because net value of company
is lesser than the company’s debt. but
the financial condition of the company in
gradually increasing in the next five
years which is indicating by the reducing
ratio of total debt to net worth.

YEAR MARCH 2021 MARCH MARCH MARCH 2018 MARCH

2020 2019 2017
RATIO 1.056670595 1.4874624 1.278515894 1.434689908 2.088996429

SAIL

SAIL LTD has continuously decreasing

numbers of ratio which shows that the
company’s financial condition is unstable.
Ratio is decreased from 1.05 to 0.78
during the FY 2017 to FY 2021.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.783510765 1.233450108 1.045091883 1.137355312 1.050165662
JSW

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 JSW’S net worth is higher than its debt.
But during the years it is decreasing. the
ratio is not that much good as compare to
other company’s ratios.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 1.121031531 1.4711859 1.0478672 1.231205 1.66497

NMDC

NMDC ltd have less than 5% of total debt

to its total assets which shows the great
financial condition of the company.
Company have more than enough money
to clear its debt and be the debt free
company. It can be the idle and risk-free
company for the investors to invest their
money.

YEAR MARCH 2021 MARCH 2020 MARCH 2019 MARCH 2018 MARCH
2017
RATIO 0.066710059 0.020431615 0.013974654 0.020468396 0

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  Total Debt / (Total Debt +Net Worth)
Total Debt to Total Debt + Net Worth is the capital structure ratio. The company should have
minimum ratio as we can see that in Terai tea the ratio is getting low which is good for the
company as smaller your debt-to-net-worth ratio the better, since it means the smaller the
percentage of your assets, you'd have to use to cover your debts.

TATA STEEL

TATA STEEL ‘s ratio is decreasing year

by year which shows that the
company’s financial condition is
improving because during the initial
years company have more debt than
recent times.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.513777266 0.597983873 0.56111783 0.589270076 0.676270263

SAIL

SAIL LTD has continuously

decreasing numbers of ratio which
shows that the company’s financial
condition is unstable.
Ratio is decreased from 0.51 to 0.43
during the FY 2017 to FY 2021.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.439308122 0.552262217 0.511024415 0.532132073 0.512234539

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JSW

JSW’S net worth is higher than its debt.

But during the years it is decreasing.
the ratio is not that much good as
compare to other company’s ratios.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.52853129 0.595336 0.5116871 0.551812 0.624761

NMDC

NMDC has the great stats about the

ratio because company doesn’t have
makeable long term and short term
debts.

YEAR MARCH 2021 MARCH 2020 MARCH 2019 MARCH 2018 MARCH
2017
RATIO 0.062538136 0.020022523 0.013782055 0.020057844 0

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  Total Liabilities /Net worth
Total liabilities to net worth means a ratio that expresses the relationship between capital
contributed by creditors and capital contributed by owners. If the debt is substantial relative to
equity, it means that a relatively small decrease in the value of assets could wipe out the owner’s
equity and remove protection from creditors who could force the business into bankruptcy.

TATA STEEL

Company have more assets than the

liabilities so that ratio of company that’s
why ratio is more than 1. During the FY
2017 ratio around 4 but after 4 years ratio
is decreasing to 2.16 which shows that
company’s debt is decreasing.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 2.167231573 3.287945312 3.276531031 3.393749331 4.396975015

SAIL

SAIL LTD has continuously decreasing

numbers of ratio which shows that the
company’s financial condition is
unstable. Company have more
liabilities than net worth. Looking at the
stats, company has maintain the ratio
at 1.5 or more which is bad sign for
financial condition.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 1.626200634 2.057742861 1.97512546 2.124530607 1.905201004

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JSW

Company’s ratios are 2.93 , 2.43, 2.21

in different years FY 2017, FY 2018,
FY 2021 respectively. Which shows
the stagnant ratio around 2.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 2.214151046 2.6592272 2.3458728 2.341977 2.932369

NMDC

NMDC’S net worth to debt ratio is too

good as compare to other companies .
liabilities of company is around 14 % to
23% of the net worth. in spite being
increased year by year company has
enough net worth against liabilities.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.235209928 0.130533374 0.147108611 0.174319241 0.140991079

PROFITABILITY RATIOS
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  Operating Profit Margin
The operating margin ratio represents how efficiently a company is able to
generate profit through its core operations. It means that higher the operating
profit ratio is considered to be healthy.

TATA STEEL

Company’s operating profit ratio is the

comparison between last year’s profit
and recent year profit. For tata steel
profit is steadily increasing year by year
ratio is around 1.04 to 1.01 during the
years.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 1.017658299 1.027550528 1.024484662 1.018208841 1.014716158

SAIL
SAIL LTD has the stagnant operating
profit that’s why you can say that
company’s day to day operations are
held normally.

YEAR MARCH MARCH 2020 MARCH MARCH 2018 MARCH

2021 2019 2017
RATIO 1.0093051 1.010038112 1.010130173 1.011272274 1.01263168
NMDC

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 During FY 2017 TO FY 2021 , there is
not that much change in the operating
profits of the company. Profit from the
day-to-day operations is increasing
steady manner.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 1.022803264 1.031076 1.02737 1.020519 1.017866

JSW

JSW ‘s operating profits are almost

same year by year. Margins are same
year by year.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 1.000000651 1.000036756 1.000042791 1.000063715 1.000043046

 Net Profit Margin

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The operating margin ratio represents how efficiently a company is able to
generate profit through its core operations. It means that higher the operating
profit ratio is considered to be healthy.

TATA STEEL

During the FY 2017 profit margins of the

TATA steel is lower than the FY 2021. IN
FY 2017 Margins are 12% and in the FY
2021 22% which is the around big
change during the period of 5 years.

YEAR MARCH MARCH MARCH MARCH 2018 MARCH

2021 2020 2019 2017
RATIO 0.22932061 0.13666252 0.223807481 0.165691627 0.125193668

SAIL

SAIL ltd has different strategy for the

profit margins, in the year 2017 profit
margins are -10% which is increased in
FY 2021 around 10%.

YEAR MARCH 2021 MARCH 2020 MARCH 2019 MARCH MARCH

2018 2017
RATIO 0.095456216 0.061994935 0.055074472 -0.01445307 -0.1043991
NMDC

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 NMDC’s profit margins are stable than
any other company. During the FY 2017
profit margin ratio is 0.09 and after 5
years it is 0.15.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.150402208 0.0529023 0.1318017 0.111845 0.091972

JSW

As the JSW steel is maximum owned by

the promoters company only work for the
profits that’s why company’s profit
margins are higher than any other
company.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.565813025 0.508570788 0.564607511 0.496969053 0.440278652

 Earning Before Tax and Interest to Total Assets

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While operating margins, as the name suggests refers to the profits earned from the core
operations of the company, the net profit margins calculate the actual margin earned after
considering the effect of interest payments on debt and tax outflows.

TATA STEEL

TATA STEEL has good ratio of earnings

before tax and interest to total assets.
Year by year ratio is gradually increasing.
Earnings of FY 2021 IS 6% of the total
assets which is doubled from FY 2017 ‘s
3% of total assets.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.061192923 0.033202533 0.06996024 0.047695644 0.034963346

SAIL

During the FY 2018 and FY

2017company is giving negative returns
of -.04 which is gained to the positive
returns from the last 3 years to 0.05 in
the FY 2021.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.056014351 0.030560877 0.031502311 -0.00725843 -0.04360786

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JSW

JSW have very volatile stats when we

talk about earnings to assets ratio before
taxes and interest. During the FY 2019 it
is 0.09 and in the FY 2020 it is 0.02
which is the big change.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.08156179 0.0296465 0.0974468 0.085559 0.058214

NMDC

NMDC have high earnings to its total

assets for the FY 2021 company’s
earnings before tax and interest is 24%
of the total assets which higher returns
for the investors. In spite of govern by the
government company has continuously
giving the high returns.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.240876474 0.198484842 0.240673268 0.210247211 0.166290201

 Earning After Interest and Tax to Total Assets

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The return on total assets ratio indicates how well a company’s investments
generate value making it an important measure of productivity for a business.
It is Considered to be having high ratio.

TATA STEEL

Earnings after the interest and tax is the

net income for the company. For the
TATA STEEL net income of the company
is rapidly increased during the last 5
years according to the ratio of the
earnings total assets of the company.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.055427002 0.026930017 0.04509411 0.019877913 0.019872415

SAIL

SAIL ltd is showing the loss in the initial

years during the FY 2017 but after FY
2018 company has gained the profits for
the first time in the period of 5 years. In
the FY 2021 company has earnings of
3% to the total assets.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.030863878 0.015177073 0.018022879 -0.00490519 -0.02741331

JSW

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 JSW has not much earnings to assets
ratio which shows that company is not
that much profitable as compare to other
companies we have in the steel sector.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.053075507 0.0304127 0.0657361 0.065976 0.03921

NMDC

NMDC have earnings after tax and

interest ratio is 0.10 , 0.13, 0.15, 0.11,
0.16respectively five years from FY 2017
TO FY 2021. Company’s earning s are
increasing astonishingly which shows the
profitability of the company.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 0.169160678 0.115110261 0.155145506 0.132556815 0.100200282

 Return on Equity

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Return on equity (ROE) is calculated by dividing a company's financial performance by its
shareholders' equity. ROE measures a company's profitability and how effectively it makes
profits.

TATA STEEL

TATA STEEL’s Return on net worth ratio

is in the increasing manner. In the FY
2017 it is 3.55 which concludes with
11.36 in the end of FY 2021

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 11.36147828 5.890038866 9.199774661 3.64168741 3.550204073

SAIL

During the march 2017 company’s return on

equity is too poor . company is giving the
negative returns during the financial year of
2017 and 2018. After those 2 years
company’s profitability is continuously
growing from -0.13 to 0.89.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 0.891021249 0.466378407 0.514665188 -0.13709137 -0.71421585
NMDC

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 The graph is showing company’s profitability
during the different years. Company’s ROE is
consistently increasing from 0.11 to 0.26. inspite
NMDC of being government company SAIL is giving
positive returns year by year.

YEAR MARCH 2021 MARCH MARCH MARCH MARCH

2020 2019 2018 2017
RATIO 26.06622517 13.318937 25.096346 20.10265 11.47508

JSW

The informative graph shows the 5 years

ROE of JSW steel ltd. During the initial
years there was slow growth rate of ROE
but in the March 2021 there is a rapid
growth in company’s growth. We can see v
shape recovery between March 2020 and
March 2021.

YEAR MARCH MARCH MARCH MARCH MARCH

2021 2020 2019 2018 2017
RATIO 21.31733033 11.76236977 15.14442013 12.01931161 8.164069661

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 CONCLUSION

This project helped us to understand the practical aspects of corporate accounting

and how these ratios are used by all the companies as well as the stakeholders of
the company to analyze the various factors such as liquidity, profitability, leverage,
growth prospects, etc.
And also, while researching we also learned many new things about the company
and also learned how to calculate the capital structure ratio and the profitability
ratio when a balance sheet and profit and loss statement is given of a company. In
this project, we tried to find out
the liquidity position, efficiency of operations, profitability position, and solvency
of a business organization. It is a quantitative technique that makes use of an
organization’s financial statements such as the income statement and the balance
sheet. The ratios and their analysis help us to gauge the financial performance of an
organization over different reporting periods. It is particularly important for
stakeholders such as the investors, suppliers, and creditors as it serves as a
measurement tool of the company’s performance in quantitative terms. With ratios,
it becomes easier to compare the performance of the company over the
years and the performance of different companies with each other. We also
analyzed the tread of this company how were they performing in the market. Also
saw how the company perform when compared to the previous year.

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 BIBLIOGRAPHY

 https://www.moneycontrol.com
 https://www.tatasteel.com/#sustainabilty
 https://www.sail.co.in/en/home
 https://www.jsw.in/
 https://www.nmdc.co.in/

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