By:Kunal Sabharwal - 03Saroja R -12Sandeep Pawar -10

JINDAL STEELFinancial Ratios Formula Mar'09 Mar'08 Mar'07

Dividend Per Share Dividend Paid / No. of Equity Shares 5.5 4 18

Net Operating Profit Per Share (Rs) Net Operating Profit / No. of Equity Shares 496.46 348.67 1,144.14Profitability Ratios        Operating Profit Margin(%) Operating Profit / Sales * 100 34.35 42.76 40.01

Profit Before Interest And Tax Margin(%) PBIT / Sales * 100 27.98 33.99 30.15Gross Profit Margin(%) GP / Sales * 100 28.71 34.35 30.46Net Profit Margin(%) NP / Sales * 100 19.5 22.79 19.75

Return On Capital Employed(%) EBIT / Avg Total Cap. Employed * 100 23.16 24.95 18.47Return On Net Worth(%) EAT / Networth * 100 28.38 32.95 28.19Return on Assets EAT / Avg Total Assets * 100 10.6 12.71 9.25Liquidity And Solvency Ratios        Current Ratio CA / CL 1.04 1.25 0.68Quick Ratio QA / QL 0.95 1.1 0.73Debt Equity Ratio Total debt / Equity 0.92 1.03 1.4Long Term Debt Equity Ratio Long term debt / Equity 0.77 0.9 1.06Debt Coverage Ratios        Interest Coverage Ratio EBIT / Interest 10.33 8.45 6.97

Management Efficiency Ratios        Inventory Turnover Ratio COGS / Avg Inventory 9.08 7.01 6.99Debtors Turnover Ratio Credit Sales / Avg Debtors 22.62 17.67 11.37Dividend Payout Ratio Net Profit Total Dividend Paid / No. of Equity Shares

* 100 5.55 5.86 9.14

Earnings Per ShareNet profit available for Equity share holders / No. of Equity shares 99.35 80.34 228.3

JINDAL STEEL

Directors have recommended a final dividend of 550% i.e. Rs. 5.50 per equity which is150% more as per compared to last year (2007-08)

The GP/ NP ratio is less as on Mar 2009 as compared to last 2 year, it may be due to Increase in operating expenses or decrease in sales due to recession in the year 2008-09

Current ratio in the past 2 years indicates that the company is able to meet its working capital requirement & its Current obligations as compared to year 2006-07 as in 2006-07 The current asset ratio was 0.68

Quick ratio which is also know as Acid test ratio here indicates that company is able to convert its current assets quickly into assets in order to cover its quick liabilities.

The strength of the company is better credit management, less loans as comparedto previous year and lower interest burden. It indicates good financial management

Return on capital Employed is improving year after year which indicates that company is able to generate sufficient cash as compared to capital it has invested in business.

Return on Assets indicates the capital intensity of the company, it shows how profitable a company’s assets are in generating revenue.

Ratio Analysis

Earning Per share indicates that how much profit was generated on a per share basis , EPS as on 2008-09 has increased by 23% as compared to last year.

Cash from operating activities: Cash generated from operations less cash deployed in net Operating assets.

Cash from financing activities: Sum of net cash from debt financing & non- strategic Investments.

Ratio Analysis cont…

BHUSHAN STEEL

Key Financial Ratios Formula ------------------- in Rs. Cr. -------------------    Mar '09 Mar '08 Mar '07Investment Valuation Ratios        Dividend Per Share Dividend Paid / No. of Equity Shares 2.5 2.5 2.5

Net Operating Profit Per Share (Rs) Net Operating Profit / No. of Equity Shares 1,173.89 984.24 901.68Profitability Ratios        Operating Profit Margin(%) Operating Profit / Sales * 100 21.93 19.98 16.4Profit Before Interest And Tax Margin(%) PBIT / Sales * 100 17.16 14.86 10.89Gross Profit Margin(%) GP / Sales * 100 17.22 14.92 15.12Net Profit Margin(%) NP / Sales * 100 8.42 10.09 8.14Return On Capital Employed(%) EBIT / Avg Total Cap. Employed * 100 8.34 8.72 9.81Return On Net Worth(%) EAT / Networth * 100 20.77 26.07 25.79Return on Assets EAT / Avg Total Assets * 100 3.47 4.81 5.8Liquidity And Solvency Ratios        Current Ratio CA / CL 1.06 0.76 0.81Quick Ratio QA / QL 0.92 0.88 1.07Debt Equity Ratio Total debt / Equity 3.98 3.52 2.67Long Term Debt Equity Ratio Long term debt / Equity 3.75 2.84 2.15Debt Coverage Ratios        Interest Cover EBIT / Interest 15.02 10.95 6.81

Management Efficiency Ratios        Inventory Turnover Ratio COGS / Avg Inventory 4.75 4.4 5.09Debtors Turnover Ratio Credit Sales / Avg Debtors 8.06 7.23 8.12

Dividend Payout Ratio Net ProfitTotal Dividend Paid / No. of Equity Shares * 100 2.94 2.93 3.96

Earnings Per Share Net profit available for Equity share holders / No. of Equity shares 99.2 99.77 73.76

Ratio AnalysisThe GP/ NP ratio is more as on Mar 2009 as compared to last 2 year, it may be due to decrease in operating expenses or increase in sales in the year 2008-09

Current asset ratio in the Mar 2009 - 1.06 indicates that the company is able to meet its working capital requirement . That means current liabilities are less than current assets as company has made so many provisions and less amt of current liabilities which is good for the financial health of the company.

Quick ratio which is also know as Acid test ratio here indicates that company is able to convertIts current assets quickly into assets in order to cover its quick liabilities. In year 2009,Quick ratio,0.92 which is better as compared to 0.88 in year 2008-07.

Return on capital Employed is decreased in march 2009 & 2008 as compared to 2007-08 which indicates that company is not able to generate sufficient cash as compared to capital it has invested in business. It means each one rupee of capital employed in the business has earned 0.08 paise.

Return on Assets indicates the capital intensity of the company, it shows how profitable a Company’s assets are in generating revenue. It is decreasing from last two year.

Earning Per share indicates that how much profit was generated on a per share basis ,EPS as on 2008-09 has increased by 34% as compared to 2007-2006.

BHUSHAN STEEL

Cash flow `--------------Rs in Cr.------------------

  Mar ' 09 Mar ' 08 Mar ' 07

Profit before tax 560.79 538.93 372.37

Net cash flow-operating activity 536.77 438.57 353.09

Net cash used in investing activity -1,806.13 -2,434.03 -1,298.33

Netcash used in fin. activity 1,366.10 1,922.95 963.86

Net inc/dec in cash and equivlnt 96.74 -72.51 18.62

Cash and equivalnt begin of year 27.63 100.14 81.52

Cash and equivalnt end of year 124.37 27.63 100.14

Financial Ratios Formula Mar'09 Mar'08 Mar'07

Dividend Per Share Dividend Paid / No. of Equity Shares -- 1 1

Net Operating Profit Per Share (Rs)Net Operating Profit / No. of Equity Shares 264.7 263 247.82

Profitability Ratios        Operating Profit Margin(%) Operating Profit / Sales * 100 0.18 13.14 14.61Profit Before Interest And Tax Margin(%) PBIT / Sales * 100 -2.68 9.86 11.25Gross Profit Margin(%) GP / Sales * 100 -2.8 10.13 9.49Net Profit Margin(%) NP / Sales * 100 -9.27 3 5.03

Return On Capital Employed(%) EBIT / Avg Total Cap. Employed * 100 1.67 12.72 14.85Return On Net Worth(%) EAT / Networth * 100 -41.79 9.33 15.42Return on Assets EAT / Avg Total Assets * 100 -4.67 2.1 4.03Liquidity And Solvency Ratios        Current Ratio CA / CL 0.98 1.24 2Quick Ratio QA / QL 1.36 1.46 1.89Debt Equity Ratio Total debt / Equity 3.08 2.03 1.77Long Term Debt Equity Ratio Long term debt / Equity 1.95 1.37 1.55Debt Coverage Ratios        Interest Coverage Ratio EBIT / Interest 0.16 1.59 1.93

Management Efficiency Ratios        Inventory Turnover Ratio COGS / Avg Inventory 3.68 3.39 3.73Debtors Turnover Ratio Credit Sales / Avg Debtors 3.18 3.45 3.5Dividend Payout Ratio Net Profit Total Dividend Paid / No. of Equity

Shares * 100 -- 14.4 9.17

Earnings Per ShareNet profit available for Equity share holders / No. of Equity shares -25.62 8.12 12.76

MUKAND STEEL

Cash Flow of Mukand------------------- in Rs. Cr.

-------------------  Mar '09 Mar '08 Mar '07

     

Net Profit Before Tax -204.28 80.87 113.04

Net Cash From Operating Activities 89.51 123.62 162.10

Net Cash (used in)/from

-68.51 -223.68 -19.50Investing Activities

Net Cash (used in)/from Financing Activities -44.27 98.83 -183.91

Net (decrease)/increase In Cash and Cash Equivalents -23.27 -1.23 -41.30

Opening Cash & Cash Equivalents 55.29 56.52 97.82

Closing Cash & Cash Equivalents 32.01 55.29 56.52

MUKAND STEEL

Directors does not recommended a final dividend per equity in year 2009 ,where as it was 1 last year 2007 & 08

The GP/ NP ratio is less as on Mar 2009 as compared to last 2 year, it may be due to Increase in operating expenses or decrease in sales due to recession in the year 2008-09

Current ratio in 2009 indicates that the company is not able to meet its working capital requirement & its Current obligations as compared to year 2006-07 as in 2006-07 The current asset ratio was 2 & 1.24 respectively.

Quick ratio which is also know as Acid test ratio here indicates that company is not comfortable when it comes to convert Its current assets quickly into assets in order to cover its quick liabilities.

Return on capital Employed is deteriorating year after year which indicates that company is not able to generate sufficient cash as compared to capital it has invested in business.

Return on Assets indicates the capital intensity of the company, Here it shows company is not able to generating revenue.

Ratio Analysis

Debtors Turnover Ratio is decreasing year by year, its an good sign for the company's prosper point of view.

Earning Per share indicates that how much profit was generated on a per share basis ,EPS as on 2008-09 has decrease tremendously by 300 % as compared to last year.

Net profit has been decreased in 2009 as compare to the previous two year this may be due to volatile market as well as recession around the world.

Opening Cash & Cash Equivalents has been more or less same as compare to previous year. Company has invested same amount of cash as in 2007 due to market conditions.

Closing Cash & Cash Equivalents has been decrease as compare to the previous two years this is not an good sign for an developing company.

Ratio Analysis cont…