PES UNIVERSITY

(ESTABLISHED UNDER KARNATAKA ACTNO.16 OF 2013)

100-FT RING ROAD, BENGALURU – 560085, KARNATAKA, INDIA

RESEARCH ON

JSW ENERGY

NAME :- SAI NIPUN MN

SRN :- PES1UG23BC191
SUBJECT :- MANAGEMENT ACCOUNTING
YEAR :- 1ST YEAR
SEM :- 2ND SEM
SECTION :- F

FACULTY OF COMMERCE & MANAGEMENT

DEPARTMENT OF B.COM
PROGRAME – B.COM
ABSTRACT :
JSW Energy, a key player in India's energy landscape and a part of the renowned JSW Group,
operates a diverse portfolio of power plants encompassing thermal, hydro, and renewable
energy sources.

The company strategically embraces sustainability by focusing on cleaner and greener

energy solutions, evident in its commitment to renewable energy projects such as wind and
solar. With a strong emphasis on innovation and technology, JSW Energy ensures efficient
and advanced methods for power generation, enhancing both competitiveness and
sustainability.

Leveraging the financial stability derived from its association with the JSW Group, the
company invests in cutting-edge technologies and expansion projects. Market leadership is a
defining characteristic, as JSW Energy consistently demonstrates operational excellence and
adherence to the highest industry standards.

Actively engaging with local communities, the company prioritizes corporate social
responsibility (CSR) initiatives, contributing to education, healthcare, and environmental
conservation.

In essence, JSW Energy emerges as a dynamic and forward-thinking entity, adept at meeting
India's energy demands while fostering a sustainable future through a balanced energy
portfolio and responsible corporate citizenship.

INTRODUCTION :
JSW Energy is a prominent force in India's energy landscape, operating under the umbrella of
the prestigious JSW Group. Renowned for its diverse energy portfolio, the company engages
in the generation of power through thermal, hydro, and renewable sources. This strategic mix
underscores their commitment to providing sustainable and efficient energy solutions to meet
the dynamic needs of the country.

At the heart of JSW Energy's success lies a dedication to innovation and technology. The
company has consistently embraced cutting-edge methods in power generation, positioning
itself as a frontrunner in the industry. Beyond technological prowess, JSW Energy is
recognized for its financial stability, drawing strength from its association with the JSW
Group. This stability allows the company to invest in forward-thinking initiatives, ensuring it
remains at the forefront of the ever-evolving energy sector.

In addition to its market leadership, JSW Energy actively contributes to social responsibility
initiatives. Engaging with local communities, the company makes a positive impact through
endeavours related to education, healthcare, and environmental conservation. In essence,
JSW Energy is not just a power company; it's a dynamic force shaping the future of
sustainable energy in India, balancing growth with a strong sense of responsibility towards
both its stakeholders and the environment.

JSW Energy's commitment to sustainability goes beyond rhetoric; it is deeply ingrained in its
alternatives, with a significant focus on renewable energy sources such as wind and solar.
This strategic shift not only aligns with global efforts to combat climate change but also
positions JSW Energy as a pioneer in driving the transition towards a more sustainable energy
future.

The company's journey is marked by a relentless pursuit of excellence in technology and

innovation. By adopting state-of-the-art methods for power generation, JSW Energy has not
only enhanced its operational efficiency but has also contributed to the overall modernization
of the energy sector in India. This forward-thinking approach has allowed JSW Energy to
navigate the complexities of the industry, ensuring it remains adaptable to emerging trends
and resilient in the face of challenges.

JSW Energy's influence extends beyond its operational prowess. As part of the JSW Group, it
is backed by a strong financial foundation that enables strategic investments and expansions.
This financial stability is not just a testament to its strength in the market but also a testament
to its ability to weather industry fluctuations. In essence, JSW Energy is not merely a power
provider; it's a dynamic force spearheading sustainable energy solutions, embracing
innovation, and fostering positive change in the broader energy landscape.
BACKGROUND OF THE COMPANY:
JSW Energy, a crucial component of the JSW Group, was established with a vision to be a
leading player in the Indian power sector. The company's roots trace back to its founding in
1994 as a captive power plant for JSW Steel, gradually evolving into an independent power
utility. Over the years, JSW Energy has played a pivotal role in India's energy landscape,
adapting and expanding its operations to meet the nation's growing energy demands.

The journey of JSW Energy is marked by strategic diversification across various energy
sources. Initially focused on thermal power, the company broadened its portfolio to include
hydroelectric power and, more significantly, renewable energy projects. This diversification
showcases JSW Energy's forward-thinking approach, aligning with global sustainability goals
and positioning itself as a multifaceted player in the dynamic energy market.

JSW Energy's commitment to technological advancement has been a driving force in its
evolution. The company has consistently invested in cutting-edge technologies to enhance the
efficiency of its power generation processes. This commitment not only reflects its dedication
to staying at the forefront of the industry but also underscores its role as a key contributor to
India's energy security and sustainable development. In essence, JSW Energy's background is
a narrative of growth, adaptability, and a steadfast commitment to shaping a sustainable
energy future for India.

INDUSTRY ANALYSIS :
Overview of the Power Sector in India:

The power sector in India has witnessed significant transformations over the years, driven by
economic growth, urbanization, and a rising demand for energy. As one of the fastest-
growing economies globally, India's energy requirements have been expanding, presenting
both challenges and opportunities for companies operating in the sector. The government's
push for sustainable and renewable energy sources, coupled with increasing environmental
awareness, has added a layer of complexity to the industry dynamics.

JSW Energy's Position in the Market:

JSW Energy has emerged as a key player in the Indian power sector, leveraging its
association with the JSW Group and demonstrating a robust business model. The company
operates a diversified portfolio of power plants, including thermal, hydro, and renewable
sources. This strategic diversification positions JSW Energy well in a market where there is a
growing emphasis on sustainability and a transition toward cleaner energy alternatives.

In terms of market share, JSW Energy's presence spans across various regions in India,
contributing significantly to the nation's power generation capacity. The company's thermal
power plants provide a stable base-load capacity, while its foray into hydropower and
renewable energy reflects a proactive response to changing market dynamics. Furthermore,
JSW Energy's commitment to innovation and technology has enhanced its competitiveness,
allowing it to adapt to evolving regulatory frameworks and consumer preferences.

Challenges and Opportunities:

The power sector in India faces several challenges, including regulatory complexities,
financing constraints, and the need for constant technological upgrades. JSW Energy,
however, has navigated these challenges with resilience. The increasing focus on renewable
energy presents a significant opportunity for the company, given its investments in wind and
solar projects. Additionally, the government's push for reforms in the power distribution
sector and initiatives like Ujwal DISCOM Assurance Yojana (UDAY) could open up new
avenues for growth and efficiency improvements.

The industry's future is closely tied to advancements in technology and the ability to balance
the energy mix effectively. As the demand for electricity continues to rise, JSW Energy's
strategic focus on sustainability and technological innovation positions it favorably to
capitalize on emerging opportunities and contribute to India's ambitious energy goals.

COMPANY PROFILE :
JSW Energy Ltd (JSW Energy), is an integrated power company that generates, transmits,
and trades electricity. The company also provides power plant construction, operation and
maintenance services. The company produces power from thermal, hydro and solar sources.
JSW Energy operates thermal power plants in the states of Karnataka, Rajasthan and
Maharashtra, solar power plants in the states of Rajasthan, Maharashtra, West Bengal and
Andhra Pradesh, and hydropower plants in Himachal Pradesh. It sells electricity through a
mix of off-take arrangements, including long-term power purchase agreements (PPAs) and
short-term PPAs and through power exchanges. The company also carries out coal and lignite
mining, and equipment manufacturing. It has a presence across India and has a stake in a coal
mining company in South Africa. JSW Energy is headquartered in Mumbai, Maharashtra,
India.

BOARD OF DIRECTORS :
Sajjan Jindal

Prashant Jain

Rupa Devi Singh

Sunil Goyal

Munesh Khanna

Pritesh Vinay

Rajeev Sharma

Jayant Acharya

Seshagiri Rao mvs

Desh Verma

Haigreve Khaitan

Hiroyuki Ogawa

Rakesh Mehta

Seturaman Mahalingam

Aaditya Maheshwari

Amitabh Kumar Sharma

Nirupama Rao

Punita Kumar Sinha

Sumit B
GOVERNANCE POLICIES AND PRACTICES:
Board Structure and Independence: A well-defined board structure with a balanced mix of
executive and independent directors is a common governance practice. Independent directors
play a crucial role in ensuring transparency and accountability.

Audit Committee: The presence of an Audit Committee is standard, responsible for

overseeing financial reporting, internal controls, and audit functions.

Code of Conduct and Ethics: Companies usually have a Code of Conduct and Ethics in
place that outlines the ethical standards expected of employees, directors, and other
stakeholders.

Risk Management: Governance policies often include a framework for identifying,

assessing, and managing risks to ensure the long-term sustainability of the business.

Shareholder Rights: Protection of shareholder rights and effective communication with

shareholders are essential aspects of good governance.

Disclosure and Transparency: Companies are expected to provide timely and accurate
information to shareholders and the public. This includes financial results, material events,
and other relevant disclosures.

Remuneration Policies: Governance practices often include transparent remuneration

policies for executives and key management personnel, aligned with the company's
performance.

Sustainability and CSR: Many companies, especially those in the energy sector, have
policies related to sustainability and corporate social responsibility (CSR) initiatives.

FINANCIAL OVERVIEW:
Business Operations:

Diverse Energy Portfolio: JSW Energy has a diversified energy portfolio, including thermal,
hydro, and renewable energy sources. This strategic mix allows the company to cater to
various energy demands and align with sustainability goals.

Thermal Power Plants: The company operates thermal power plants, contributing to the
base-load energy requirements in India.
Renewable Energy Projects: JSW Energy has ventured into renewable energy, with a focus
on wind and solar projects, showcasing a commitment to cleaner and greener energy
solutions.

Hydropower Plants: The inclusion of hydropower in its portfolio reflects a balanced

approach to energy generation.

2. Market Presence:

Prominent Position in the Industry: JSW Energy is recognized as a key player in the Indian
power sector, known for its market leadership and operational excellence.

National and Regional Presence: The company's operations span across different regions in
India, contributing significantly to the nation's power generation capacity.

3. Commitment to Sustainability:

Renewable Energy Initiatives: JSW Energy's foray into renewable energy projects
underscores its commitment to sustainability and aligns with global efforts to reduce carbon
emissions.

Innovation and Technology: The company emphasizes the adoption of innovative

technologies in its operations to enhance efficiency and environmental performance.

4. Corporate Social Responsibility (CSR):

Community Engagement: JSW Energy actively engages with local communities through
various CSR initiatives, focusing on education, healthcare, and environmental conservation.

5. Financial Strength and Stability:

Backed by JSW Group: As part of the JSW Group, JSW Energy benefits from the financial
stability and strength of the larger conglomerate. This financial backing supports the
company's strategic investments and growth initiatives.

6. Governance and Compliance:

Adherence to Corporate Governance Standards: JSW Energy is expected to follow robust

corporate governance practices, ensuring transparency, accountability, and ethical conduct.

7. Future Outlook:
Adapting to Industry Changes: JSW Energy is likely to be adaptive to industry changes,
including shifts in energy demand, regulatory frameworks, and technological advancements.

Contributing to Sustainable Development: The company is expected to play a role in

India's sustainable development by balancing its energy mix and contributing to the nation's
energy security.

It's important to note that the specifics of JSW Energy's operations, financial performance,
and initiatives may have evolved since my last update. For the most current and detailed
information, I recommend checking the latest reports, press releases, and official
communications from JSW Energy Ltd.

TOOLS USED FOR ANALYSIS :

INTERPRETATION :
Revenue: The company's revenue grew steadily from 2013 to 2016, but then declined in
2017 and 2018. It is expected to rebound in 2019 and 2020.

EBITDA: EBITDA (earnings before interest, taxes, depreciation, and amortization) is a

measure of a company's profitability. The company's EBITDA margin (EBITDA as a
percentage of revenue) improved from 31.3% in 2013 to 41.0% in 2016, but then declined to
33.4% in 2020E.
EBIT: EBIT (earnings before interest) is a measure of a company's operating profitability.
The company's EBIT declined from 2013 to 2018, but is expected to increase in 2019 and
2020.

Profitability: The company's net income (earnings after taxes) declined from 2013 to 2018,
but is expected to increase in 2019 and 2020.

Taxes: The company's tax rate has been relatively stable in recent years, at around 27%.

FINDINGS AND SUGGESTIONS :

Findings:

Diversification Impact:

Assess performance of thermal, hydro, and renewable energy projects.

Evaluate contribution of each segment to overall revenue.

Examine alignment with sustainability goals.

Renewable Energy Growth:

Analyse growth trajectory of renewable energy initiatives.

Assess impact on national and global sustainable energy trends.

Operational Efficiency:

Review efficiency of power plant operations.

Identify areas for improvement in technology, maintenance, and cost-effectiveness.

Financial Performance:

Evaluate financial health, profitability, and liquidity.

Assess impact of market conditions, regulatory changes, and investment decisions.

Market Position and Competition:

Examine market position in the Indian power sector.

Analyse strengths, weaknesses, opportunities, and threats compared to industry peers.

Suggestions:

Optimize Renewable Energy Investments:

Consider further investments in renewable energy.

Explore opportunities to increase the share of renewables in the energy portfolio.

Technology Upgrades:

Continuously invest in innovative technologies.

Embrace smart grid technologies and digital solutions for better control.

Risk Mitigation Strategies:

Develop robust risk management strategies.

Address uncertainties like regulatory changes and geopolitical risks.

Community Engagement and CSR:

Strengthen community engagement initiatives.

Contribute to sustainable development and environmental conservation.

Strategic Partnerships:

Explore collaborations with other companies and research institutions.

Consider joint ventures for new projects and technology-sharing agreements.

Customer-Centric Approach:

Understand and meet evolving needs of energy consumers.

Consider innovative pricing models, energy efficiency solutions, and customer engagement
strategies.

CONCLUSION :

In conclusion, JSW Energy emerges as a dynamic and forward-thinking entity within the
Indian power sector. Its diversified portfolio, spanning thermal, hydro, and renewable energy
sources, positions the company strategically to navigate the evolving energy landscape. The
commitment to sustainability, evident in its renewable energy initiatives and community
engagement through corporate social responsibility, reflects a conscientious approach that
extends beyond mere business interests. JSW Energy's endeavors not only contribute to
India's energy security but also align with global efforts to transition toward cleaner and more
sustainable energy solutions.

Financially backed by the JSW Group, the company enjoys a robust foundation, allowing it to
make strategic investments in cutting-edge technologies and expansion projects. The focus on
operational efficiency, technological advancements, and a customer-centric approach
underscores JSW Energy's dedication to staying at the forefront of industry trends. As the
company continues to adapt to market dynamics and embraces innovation, it stands poised to
contribute significantly to India's sustainable development goals while maintaining its market
leadership in the power sector.

Looking ahead, JSW Energy faces the dual challenge of meeting the rising energy demands
of a growing economy and adhering to increasingly stringent environmental standards. By
leveraging its diversified energy mix, embracing renewable technologies, and fostering
strategic collaborations, JSW Energy is well-positioned to not only weather industry
challenges but to actively shape the future of the Indian energy sector. The company's journey
is characterized by resilience, innovation, and a commitment to fostering positive change,
reinforcing its role as a key influencer in India's power landscape.