A STUDY ON FINANCIAL PERFORMANCE OF JSW STEEL LTD, SALEM BY T. BALAMURUGAN (Reg.No:950511631008) Of Dr.SIVANTHI ADITHANAR COLLEGE OF ENGINEERING (Affiliated to Anna University of Technology, Chennai) TIRUCHENDUR-628215 A PROJECT REPORT Submitted to the DEPARTMENT OF MANAGEMENT STUDIES In partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION ANNA UNIVERSITY OF TECHNOLOGY CHENNAI September 2012
BONAFIDE CERTIFICATE
Certificated that this project report titled “A study on financial performance of JSW Steel limited, Salem.” is the bonafide work of Mr.T. BalaMurugan (Registration Number: 950511631008) who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
Supervisor
Head Of the department
Submitted to project and Viva Examination held on …………………………….
Internal Examiner
External Examiner
DECLARATION
I hereby declare that the project titled “A STUDY ON FINANCIAL PERFORMANCE OF JSW STEEL LIMITED, SALEM” submitted for the award of Master of Business Administration in Anna University of Technology, Chennai has been carried under the guidance of Miss. Udaiya, MBA, M.Phil, MISTE., Lecturer, Department of Management Studies, Dr.Sivanthi Aditanar college of Engineering, Tiruchendur and it is my original work does not form part of the award of any Degree or Diploma.
Signature of the candidate (T.Balamurugan) (Reg.No.950511631008) Place: Date:
ACKNOWLEGEMENT
I am very much grateful to god almighty who helped me to complete the project work and this acknowledgment would be incomplete without expression any whole hearted thanks to my lovable parents. I
would
like
to
acknowledge
our
heartfelt
thanks
to
our
principal
Dr.J.Maheswaran, ME, Ph.D, FIE, MISTE.., who gave us the opportunity to do this project. I would like to express my sincere thanks to Dr.P.Nagarajan, B.G.L., M.L.S., M.com, M.B.A., Ph.D., Dr.Sivanthi Aditanar College of Engineering, for permitting me the faculties for this study. I would like to express my sincere thanks to Dr.P.Amirtha Gowri, M.Com, M.Phil, PGDCA, Ph.D., MISTE Asst.Prof & Head of the Department of Management Studies, for her support in completion of this project. I extend my sincere thanks to the project guide Miss. Udaiya, MBA, MPhil, MISTE, for her support in completion of this project successfully. I must thank other faculty members of Department of Management Studies, Dr.Sivanthi Aditanar college of Engineering. I would like to express my sincere gratitude to company and whose invaluable guidance and encouragement helped me not only perform the work assigned to me. I acknowledge with sincere gratitude to all those who helped me to do the project and who motivated me during the tenure of the study and for their inspiration and encouragement throughout this project. And I thank all the faculties of JSW steel limited.
ABSTRACT It is essential to know about the financial performance and stability of the business to know the dynamic situation. In this project there is a wider scope to know the financial performance of JSW Steel limited, Salem. In general it is possible to discuss finance performance in three main aspects such as financial liquidity, and profitability, and solvency of the company. Financial ratios are widely used for modeling purposes both by practitioners and researchers. This study is mainly based on the secondary data collected from the records of JSW Steel Limited, Salem Common size statement and trend analysis are used as a benchmark for evaluating the financial performance of the spinning mill. Ratio analysis is a widely used tool for financial analysis. It is defined the systematic use of interpret the financial statements so that the strength and weakness of a firm as well as its historical performance and current financial conditions can be ascertained. The term ratio refers to the numerical or quantitative relationship between two items/variables. Management should be particularly interested in knowing financial strength of firm to make their best use and to be able to spot out financial weakness of the firm in corrective actions. Hence an attempt is made to analyze the financial performance of JSW Steel Limited, Salem. Findings from the analysis are given under the project. Based on the findings, suggestions were given.
TABLE OF CONTENTS S.No.
CONTENTS
CHAPTER I 1.1
INTRODUCTION
1.2
STATEMENT OF THE PROBLEM
1.3
OBJECTIVIES OF THE STUDY
1.4
REVIEW OF LITERATURE
1.5
SCOPE OF THE STUDY
1.6
LIMITATION OF THE STUDY
1.7
RESERCH METHODOLOGY
1.8
CHAPTERISATION
CHAPTER II 2
INDUSTRY PROFILE & COMPANY PROFILE CHAPTER III
3
THEORTICAL VIEW CHAPTER IV
4
DATA ANALYSIS AND INTERPREATION
4.1
INTRODUCTION
4.2
RATIO ANALYSIS
4.3
TREND ANALYSIS
4.4
COMMON SIZE BALANCE SHEET CHAPTER V
5.1
INTRODUCTION
5.2
SUMMARY OF FINDINGS
5.3
SUGGESTIONS
5.4
CONCLUSION APPENDICES BILBLIOGRAPHY
PAGE NO.
LIST OF TABLES
S.NO
NAME OF THE TABLE
4.1
Current ratio
4.2
Quick ratio
4.3
Debt equity ratio
4.4
Proprietary ratio
4.5
Capital turnover ratio
4.6
Debtors turnover ratio
4.7
Average collection ratio
4.8
Fixed asset turnover ratio
4.9
Gross profit ratio
4.10
Net profit ratio
4.11
Return on capital employed ratio
4.12
Return on shareholders’ fund ratio
4.13
Trend Analysis – Sales
4.14
Trend Analysis – Profit
4.15
Trend Analysis – Current asset
4.16
Trend analysis – Current liabilities
4.17
Trend analysis – Manufacturing cost
4.18
Common Size Balance Sheet
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