Embed Size (px)
Citation preview
Business FinanceDepreciation Cost in Steel Industry
Presented By:-
Dipanway Bhabuk
During 2012, India maintained its ranking as the 4th largest steel
producing country in the world behind China, Japan and the US with a
crude steel production of 76.7 million tonnes (MT) representing a 4.3%
growth over 2011.
Steel Industry In India
As per official estimates, the Iron and Steel Industry contributes around 3 per cent of the Gross Domestic Product (GDP). From a negligible global presence, the Indian steel industry is now globally acknowledged for its product quality.
The table below shows the trend in production for sale, import, export and real consumption of total finished steel (alloy + non-alloy) in the country:
Gross Domestic Product
Data source page 19
Depreciation is a non-cash expenses that reduces the value of an assets over
time.
Methods of Depreciation:-
Straight Line Method:- This method is used when the assets generates
revenue that are equal or very close to equal over its useful life.
Calculation:- Total Cost – Residual Value
Useful Life
Diminishing Balance Method:- This method is used when the assets revenue decreases over its useful life.
Calculation:- (Total Cost – Accumulated Depreciation) * Depreciation Rate
Depreciation
Why
Where
Depreciation
Purpose
Why, Where and Purpose of Depreciation
Depreciation occurs due to wear and tear, usage, obsolescence through technology.
Tangible & Intangible Assets
Ascertainment of True Profit & Loss,Cost Of Production, Valuation of Assets, Replacement of Assets
TATA STEEL 2014-13 2013-12 2012-11
Total revenue 42,498.67 39,101.47 34,819.89
Total Assets 24,064.43 24,650.54 11,142.36
Depreciation 1,780.00 1,568.80 1,095.83
Percentage of Depreciation on Total Assets 7.40 % 6.36 % 9.83 %
Percentage Increased in Total Revenue without Depreciation
1.04 % 1.04 % 1.03 %
Depreciation of TATA STEEL
EXCEL WORK
(Rupees in Crores)
JSW STEEL 2014-13 2013-12 2012-11
Total revenue 42,498.67 35,491.81 32,122.66
Total Assets 37,225.12 27,604.47 27,071.63
Depreciation 2,725.88 1,973.89 1,708.17
Percentage of depreciation on Total Assets 7.32 % 7.15 % 6.31 %
Percentage Increased in Total Revenue without Depreciation
1.06 % 1.06 % 1.05 %
Depreciation of JWS STEEL
EXCEL WORK
(Rupees in Crores)
VISA STEEL 2014-13 2013-12 2012-11
Total revenue 5,325.50 8,156.20 13,328.79
Total Assets 9,598.81 7,807.30 7,706.60
Depreciation 519.15 382.57 380.92
Percentage of depreciation on Total Assets 5.41 % 4.90 % 4.94 %
Percentage Increased in Total Revenue without Depreciation
1.10 % 1.05 % 1.03 %
Depreciation of VISA STEEL
EXCEL WORK
(Rupees in Crores)
TATA STEEL JWS STEEL VISA STEEL
2013-14 7.4 7.32 5.41
2012-13 6.36 7.15 4.9
2011-12 9.83 6.31 4.94
0
2
4
6
8
10
12P
erc
en
tag
e o
f D
ep
reci
atio
n
Book:-
• Management Accounting & Financial Management- Ravi Kishore
Internet :-
www.tatasteel.org
www.jwssteel.org
www.visasteel.org
www.steelindia.goc.in
www.wikipedia.org
Biblography
