GROUP PROJECT ON

“WORKING CAPITAL ANALYSIS/ LEVERAGE AND PROFITABILITY

ANALYSIS OF STEEL INDUSTRY”
 OF THE COURSE
CORPORATE ACCOUNTING – II

SUBMITTED TO DR. SUMITA SHROFF GOYAL

SUBMITTED BY:
Anuj Desai (IC201210)
Arpit Bilochi (IC201211)
Pratik Choraria (IC201263)
Shreyansh Kanthed (IC201279)
 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
ACKNOWLEDGEMENT 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.
 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,
ABOUT STEEL the steel sector has been a major contributor to India’s manufacturing output.
INDUSTRY
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.
COMPANIES WE CHOOSE
FOR ANALYSATION
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).
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.

 
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).
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.
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
Tata Steel 0.0386664 0.0766094 0.0462453 0.0757301 0.1057391

Combined SAIL 0.1329207

0.0134779
0.1311045
0.0631543
0.0901315
0.0551108
0.1060656
0.023658
0.18411
0.05541

Ratios &
NMDC
JSW 0.0392106 0.0180725 0.0121825 0.01743 0

Analysis Of Short term Debts/ Total Assets

Companies 0.2
0.18
0.16
0.14
0.12

Short term 0.1

0.08

Debts/ Total
0.06
0.04
0.02

Assets 0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Tata Steel SAIL NMDC JSW

 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 0.9342051 1.2355749 1.1269918 1.1776811 1.6240643

SAIL 0.4344344 0.8325664 0.7769393 0.80595 0.5152892

JSW 1.0777116 1.2400899 0.8634736 1.152139 1.447078
NMDC 0.0182767 0 0 0 0

Long Term Long Term Debt /Net worth

Debt /Net
1.8
1.6
1.4

worth 1.2
1
0.8
0.6
0.4
0.2
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL SAIL

JSW NMDC
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 0.4829917 0.5526878 0.5298525 0.5407959 0.6189118

SAIL 0.3028611 0.4543172 0.4372346 0.4462748 0.34006

JSW 0.5187012 0.5535894 0.4633678 0.535346 0.591349

Long term
NMDC 0.0179487 0 0 0 0

Long term debt / (Net worth + Long

debt / (Net 0.7
term debt)

worth + Long 0.6

0.5

term debt)
0.4
0.3
0.2
0.1
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL SAIL

JSW NMDC
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 0.3336259 0.4523988 0.3902041 0.4227448 0.4750985

SAIL 0.2983438 0.4033858 0.3512766 0.3640084 0.3614778

JSW 1.1210315 1.4711859 1.0478672 1.231205 1.66497
NMDC 0.0540071 0.0180725 0.0121825 0.01743 0

Total debt / Total debt / Total Assests

Total Assests 1.8

1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL SAIL JSW NMDC

 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 0.6842669 0.6958587 0.6947992 0.7053406 0.7725709

SAIL 0.6192218 0.6729614 0.6638797 0.6799519 0.6557897

NMDC 3 0.7267183 0.7011243 0.700776 0.7457

JSW 0.190421 0.1154618 0.128243 0.1484428 0.123569

Total Liabilities Total Liabilities / Total Assets

/ Total Assets
3.5

2.5

1.5

0.5

0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL SAIL NMDC JSW

 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 1.0566706 1.4874624 1.2785159 1.4346899 2.0889964

SAIL 0.7835108 1.2334501 1.0450919 1.1373553 1.0501657

JSW 1.1210315 1.4711859 1.0478672 1.231205 1.66497

NMDC 0.0667101 0.0204316 0.0139747 0.0204684 0

Total Debt / Net Worth

Total Debt / 2.5

Net Worth 2

1.5

0.5

0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
TATA STEEL SAIL
JSW NMDC
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 0.5137773 0.5979839 0.5611178 0.5892701 0.6762703

SAIL 0.4393081 0.5522622 0.5110244 0.5321321 0.5122345

JSW 0.5285313 0.595336 0.5116871 0.551812 0.624761

NMDC 0.0625381 0.0200225 0.0137821 0.0200578 0

Total Debt / Total Debt / (Total Debt +Net Worth)

(Total Debt
0.8
0.7

+Net Worth)
0.6
0.5
0.4
0.3
0.2
0.1
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL SAIL JSW NMDC

 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 2.1672316 3.2879453 3.276531 3.3937493 4.396975

SAIL 1.6262006 2.0577429 1.9751255 2.1245306 1.905201

JSW 2.214151 2.6592272 2.3458728 2.341977 2.932369

NMDC 0.2352099 0.1305334 0.1471086 0.1743192 0.1409911

Total Liabilities Total Liabilities /Net worth

/Net worth 5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL SAIL

JSW NMDC
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
TATA STEEL 1.0176583 1.0275505 1.0244847 1.0182088 1.0147162
SAIL 1.0093051 1.0100381 1.0101302 1.0112723 1.0126317
NMDC 1.0228033 1.031076 1.02737 1.020519 1.017866
JSW 1.0000007 1.0000368 1.0000428 1.0000637 1.000043

Operating Profit Margin

Operating 1.04

1.03

Profit Margin 1.02

1.01

0.99

0.98
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL SAIL

NMDC JSW
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 0.2293206 0.1366625 0.2238075 0.1656916 0.1251937

SAIL 0.0954562 0.0619949 0.0550745 -0.014453 -0.104399

NMDC 0.1504022 0.0529023 0.1318017 0.111845 0.091972

JSW 0.565813 0.5085708 0.5646075 0.4969691 0.4402787

Net Profit Net Profit Margin

Margin
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
-0.1 Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

-0.2

TATA STEEL SAIL

NMDC JSW
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
TATA STEEL 0.0611929 0.0332025 0.0699602 0.0476956 0.0349633

SAIL 0.0560144 0.0305609 0.0315023 -0.007258 -0.043608

JSW 0.0815618 0.0296465 0.0974468 0.085559 0.058214

Earning Before NMDC 0.2408765 0.1984848 0.2406733 0.2102472 0.1662902

Tax and
Interest to
Earning Before Tax and Interest to Total
Assets

Total Assets
0.3
0.25
0.2
0.15
0.1
0.05
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
-0.05
-0.1

TATA STEEL SAIL

JSW NMDC
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
TATA STEEL 0.055427 0.02693 0.0450941 0.0198779 0.0198724
SAIL 0.0308639 0.0151771 0.0180229 -0.004905 -0.027413
JSW 0.0530755 0.0304127 0.0657361 0.065976 0.03921

Earning After
NMDC 0.1691607 0.1151103 0.1551455 0.1325568 0.1002003

Interest and Earning After Interest and Tax to Total

Assets

Tax to Total 0.2

0.15

Assets 0.1

0.05

0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
-0.05

TATA STEEL SAIL

JSW NMDC
 YEAR Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

TATA STEEL 11.361478 5.8900389 9.1997747 3.6416874 3.5502041

SAIL 0.8910212 0.4663784 0.5146652 -0.137091 -0.714216

NMDC 26.066225 13.318937 25.096346 20.10265 11.47508

JSW 21.31733 11.76237 15.14442 12.019312 8.1640697

Return on
Equity
Return on Equity
30
25
20
15
10
5
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
-5

TATA STEEL SAIL NMDC JSW

CONCLUSION