A Study on Practical Applications of Accounting and Financial Management Concepts at JSW Steel

 

Simran Kohli¹, Dr. sameer A Kulkarni ², Dr. Bhawna Sharma³

 

¹ BCOM(A&F) Student, Amity Business School, Amity University, Mumbai, Maharashtra, India

² Associate Professor, Amity Business School, Amity University, Mumbai, Maharashtra, India

³ Offg. HOI, Amity Business School, Amity University, Mumbai, Maharashtra, India

 

1. INTRODUCTION

Basically, accounting and financial management are two vital elements that ultimately lead to the growth and stability of any business organization. Accounting refers to a process of systematically recording and presenting various aspects of financial transactions so that all the financial activities can be properly documented and presented in the records. Financial management encompasses planning, controlling, and use of financial resources efficiently in an effort to contribute toward the company's long-term goals. They provide, together, a base for informed decision-making and sustainable financial performance.

In large industrial organizations like JSW Steel, huge amounts of data are dealt with by accounting and finance departments day in and day out. They are responsible for maintaining transparency, ensuring that standards set by the government and audit are followed, and analysing financial statements to support business strategies. Financial decisions, such as budgeting, investments, and cost management, rely on accurate accounting data.

Practical exposure to such systems is of utmost importance for students and interns in commerce and finance courses. While classroom theories form the basis, the way these concepts work in real organizations gives them deeper insights. This research paper discusses and emphasizes the practical implementation of concepts of accounting and financial management at JSW Steel and assesses to what extent internships and industrial training contribute to the overall learning of students.

 

2. FINDINGS

2.1. LITERATURE REVIEW

Several researchers have studied the link between accounting theories and their real-world applications.

·     Drury (2019) emphasized that management accounting supports decision-making by providing detailed cost-related information and performance evaluation.

·     Pandey (2015) highlighted that financial management ensures the efficient use of funds and helps improve business profitability through proper budgeting and cost control.

·     Horngren and Harrison (2016) described accounting as the “language of business,” essential for communicating financial information across departments and stakeholders.

·     Kumar and Sharma (2020) suggested that students’ understanding of accounting improves significantly when they are exposed to real organizational practices during internships.

·     The JSW Steel Annual Report (2023) also confirms that the company follows Indian Accounting Standards (Ind AS) and uses advanced financial systems such as ERP and SAP to maintain transparency and accuracy.

Overall, previous studies agree that combining theory with practice not only strengthens students’ conceptual knowledge but also enhances their employability and problem-solving ability in finance-related fields.

 

2.2. Research Methodology

Type of Research: Descriptive and Analytical

Nature of Study: Quantitative and Qualitative

Primary Data: Collected through a structured Google Form questionnaire.

Secondary Data: Collected from JSW Steel's annual reports, academic journals, and reference books.

Sample Size: 45 respondents

Respondents: Commerce students and interns with exposure to accounting and finance activities.

Tool Used: Questionnaire and percentage analysis.

 

2.3. Data Analysis and Interpretation

Data collected from 45 respondents was analysed question-wise using the percentage method.

1)  Gender Distribution

Category	Percentage
Male	40
Female	60

 

 

Interpretation: Most respondents were female, reflecting the growing participation of women in finance and accounting studies.

 

2)  Age Group

Category	Percentage
Below 20 years	18
20–25 years	71
26–30 years	9
Above 30 years	2

 

 

Interpretation: The highest proportion of the respondents falls into the 20–25-year category, indicating that the majority of respondents were undergraduate students or just graduated.

 

3)  Educational Qualification

Category	Percentage
Undergraduate	67
Postgraduate	20
Professional Courses	13

 

 

Interpretation: The highest proportion of the respondents falls into the 20–25-year category, indicating that the majority of respondents were undergraduate students or just graduated.

 

4)  Internship or Training Experience

Category	Percentage
Yes	80
No	20

 

 

Interpretation: A substantial proportion of the respondents had completed internships in accounting or finance, indicating an increased focus towards practical exposures.

 

 

 

5)  Duration of Internship or Training

Category	Percentage
Less than 1 month	22
1–2 months	56
More than 2 months	22

 

 

Most of the internships lasted 1–2 months, which is too little to deeply understand real financial operations.

 

6)  Familiarity with Accounting Software

Category	Percentage
Highly familiar	27
Somewhat familiar	58
Not familiar	15

 

 

Interpretation: Most students have basic familiarity with software like Tally, SAP, or Excel but lack advanced exposure to professional tools.

7)  Importance of Accounting in Business

Category                             Percentage

Very important                         62

Important                                       31

Not very important                               7

 

 

Interpretation: To the majority, accounting is an indispensable part of a company's activities and financial performance.

 

8)    Usefulness of Financial Management

Category	Percentage
Very useful	53
Somewhat useful	40
Not useful	7

 

 

Interpretation: Respondents agreed on the viewpoint that financial management plays a key role in decision-making, planning, and business control.

9)    Challenges Faced During Learning

 

Accordingly, the limited access and time constitute stumbling blocks for most students to learn about real accounting systems.

10)   Suggestions to Improve Practical Learning

Category	Percentage
Longer internships	33%
Workshops on software	29%
Mentorship programs	22%
Access to real data	16%

 

Interpretation: Most respondents suggested more practical training with extended internship opportunities.

 

2.4. Findings from the Questionnaire

1)     60% of respondents were female, and most were aged 20–25.

2)     67% were undergraduate commerce students.

3)     80% had done an internship related to accounting or finance.

4)     The majority used Tally and Excel and were somewhat familiar with them.

5)     Accounting and financial management were rated highly important for business success.

6)     The main learning difficulties were short internship duration and lack of access to real data.

7)     Students agreed that internships helped them connect theory with practice.

8)     Most respondents recommended longer internships and practical workshops.

 

3. Conclusion

The study concludes that accounting and financial management are essential for organisational success and informed decision-making. Students understand their theoretical importance but still require more hands-on experience to apply these concepts effectively.

Internships provide valuable exposure to real business environments like JSW Steel, where accounting systems, budgeting, and cost control are implemented practically. Even though challenges such as time limits and restricted data exist, such experiences greatly enhance student learning and confidence.

 

4. Recommendations

1)  More Practical Workshops: Colleges should conduct regular sessions on Tally, SAP, and Excel.

2)  Extended Internship Duration: Students should get at least 2–3 months of exposure.

3)  Mentorship Programs: Companies can assign mentors to guide interns through finance tasks.

4)  Access to Sample Data: Providing limited but real-type data would help students understand accounting entries better.

5)  Industry-Academia Partnership: Universities should collaborate with companies for live projects.

 

CONFLICT OF INTERESTS

None. 

 

ACKNOWLEDGMENTS

None.

 

REFERENCES

Drury, C. (2019). Management and Cost Accounting. Cengage Learning.

Pandey, I. M. (2015). Financial Management. Vikas Publishing House.

Horngren, C. T., and Harrison, W. T. (2016). Accounting. Pearson Education.

Kumar, A., and Sharma, R. (2020). Financial Analysis and Applications. McGraw-Hill.

JSW Steel. (2023). Annual Report.

Gupta, S. P. (2021). Practical Applications of Accounting in the Corporate Sector. Indian Journal of Commerce Studies.