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This document is a project report submitted by Nirav Chauhan analyzing the financial performance of Tata Steel Company. It includes an introduction to Tata Steel's operations and history. The main body of the report contains a financial analysis of Tata Steel over several years including analysis of profit and loss statements, balance sheets, trends, ratios and comparisons to peers. It aims to provide insight into Tata Steel's financial position and performance through analytical tools and comparisons.

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KES SHROFF COLLEGE OF ARTS AND COMMERCE NAAC Accredited A Grade (CGPA 3.16) and ISO 9001:2008 Certified PROJECT REPORT ON FINANCIAL ANALYSISI OF TATA STEEL COMPANY SUBMITTED BY NIRAV .S. CHAUHAN T..Y..B..Com.. C-- 08 SUBMITTED TO UNIIVERSIITY OF MUMBAII PROJECT GUIDE Mr. V. S. KANNAN ACADEMIC YEAR 2012 2013
KANDIVLI EDUCATION SOCIETYS B.K. Shroff College of Arts & M.H. Shroff College of Commerce Bhulabhai Desai Road, Kandivli (West), Mumbai 400067 NAAC Accredited A Grade(CGPA 3.16) and ISO 9001:2008 Certified PROJJECT REPORT FINACIAL ANALYSISI OF TATA STEEL COMPANY SUBMIITTED BY NIIRAV ..S.. CHAUHAN T..Y..BACHELOR OF COMMERCE SUBMIITTED TO UNIVERSITY OF MUMBAI PROJECT GUIIDE NAME OF THE GUIDE Mr. V. S. Kannan ACADEMIIC YEAR 2012 2013
KANDIVLI EDUCATION SOCIETYS B.K. Shroff College of Arts & M.H. Shroff College of Commerce Bhulabhai Desai Road, Kandivli (West), Mumbai 400067 NAAC Accredited A Grade(CGPA 3.16) and ISO 9001:2008 Certified C E R T I F I C A T E This is to certify that NIRAV .S. CHAUHAN of T.Y.B.Com A-31, has successfully completed a project on FINANCIAL ANALYSIS OF TATA STEEL COMPANY under the guidance of MR. V.S.KANNAN during the academic year 2012-2013 Co-ordinator Project Guide Principal Internal Examiner External Examiner College Seal
DECLARATION I MR. NIRAV .S. CHAUHAN of K.E.S. SHROFF COLLEGE OF ARTS & COMMERCE, student of T.Y.BCOM A-31,Management Account Project, hereby declare that I have completed my project title FINANCIAL ANALYSIS OF TATA STEEL COMPANY I also declare that this project which has been the partial fulfillment of the requirement of the degree of T.Y.B.COM of the Mumbai University has been the result of my efforts. Signature of Student _________________
ACKNOWLEDGEMENT I have sincerely done my project alloted to me. I would like to thank our vice Principal Mr. V. S. Kannan., the guide for giving her valuable suggestion and guidance. I would also like to thank our Principal Dr. LILY BHUSHAN. It gives me immense pleasure to present this project in the Project of Management Accounts. I would like to thank all those people who gave me their opinion without their help this project would not be possible to submit in time. NIRAV
INDEX PARTICULARS PAGE NO Introduction 1 Financial Analysis 5 - Profit & Loss A/C 6 - Balance Sheet 8 - Trend Analysis 10 -Comparative Statements 12 - Cash Flow 14 - Financial Ratios 15 -Capital structure 18 Peer To Peer Comparison 20
Introduction Backed by 100 glorious years of experience in steel making, Tata Steel is among the top ten steel producers in the world with an existing annual crude steel production capacity of 30 Million Tons Per Annum (MTPA). Established in 1907, it is the first integrated steel plant in Asia and is now the world`s second most geographically diversified steel producer and a Fortune 500 Company. Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. It was the vision of the founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the first stake was driven into the soil of Sakchi. His vision helped Tata Steel overcome several periods of adversity and strive to improve against all odds. Tata Steel`s Jamshedpur (India) Works has a crude steel production capacity of 6.8 MTPA which is slated to increase to 10 MTPA by 2010.
The Company also has proposed three Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam. Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and NatSteel Holdings, Singapore, Tata Steel has created a manufacturing and marketing network in Europe, South East Asia and the pacific-rim countries. Corus, which manufactured over 20 MTPA of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway and Belgium. Tata Steel Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MTPA. Tata Steel has proposed a 0.5 MTPA mini blast furnace project in Thailand. NatSteel Holdings produces about 2 MTPA of steel products across its regional operations in seven countries. Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction applications market. The iron ore mines and collieries in India give the Company a distinct advantage in raw material sourcing. Tata Steel is also striving towards raw materials security through joint ventures in Thailand, Australia, Mozambique, Ivory Coast (West Africa) and Oman. Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also, Tata Steel has bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining. Exploration of opportunities in titanium dioxide business in Tamil Nadu, ferro-chrome plant in South Africa and setting up of a deep-sea port in coastal Orissa are integral to the Growth and Globalisation objective of Tata Steel. Tata Steels vision is to be the global steel industry benchmark for Value Creation and Corporate Citizenship.
Tata Steel India is the first integrated steel company in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in Total Quality Management. THE TATA GROUP Before we discuss at the length of the company, we would like to throw some light on the Tata Group of companies in present day India.
Tata Steel is one of the ventures of the Tat Group but it has many successful companies under one umbrella. Some of the other notable Tata concerns and their lines of businesses are shown below.
Financial
analysis
P&L a/c For The Year Endings *rupees in crores Particulars Mar '12 Mar '11 Mar '10 Income Sales Turnover 135,975.56 121,345.75 104,229.83 Excise Duty 3,075.86 2,686.43 1,924.00 Net Sales 132,899.70 118,659.32 102,305.83 Other Income 4,934.95 3,687.41 -61.87 Stock Adjustments 785.93 1,355.98 -660.04 Total Income 138,620.58 123,702.71 101,583.92 Expenditure Raw Materials 74,555.02 61,193.71 51,855.32 Power & Fuel Cost 5,935.48 4,889.18 4,885.05 Employee Cost 17,228.64 15,286.92 16,462.99 Other Manufacturing Expenses 7,456.60 6,606.07 6,053.34 Selling and Admin Expenses 0 11,009.76 9,599.68 Miscellaneous Expenses 16,950.73 4,978.70 4,687.37 Preoperative Exp Capitalized -857.63 -219.63 -165.47 Total Expenses 121,268.84 103,744.71 93,378.28 Operating Profit 12,416.79 16,270.59 8,267.51
PBDIT 17,351.74 19,958.00 8,205.64 Interest 4,250.11 3,426.67 3,659.77 PBDT 13,101.63 16,531.33 4,545.87 Depreciation 4,516.65 4,414.82 4,491.73 Profit Before Tax 8,584.98 12,116.51 54.14 Extra-ordinary items 0 18.5 14.72 PBT (Post Extra-ord Items) 8,584.98 12,135.01 68.86 Tax 3,636.46 3,247.26 2,153.46 Reported Net Profit 4,948.52 8,856.05 -2,120.84 Minority Interest -173.14 -60.28 15.24 Share Of P/L Of Associates -268.11 -66.36 -126.86 Net P/L After Minority Interest & Share Of Associates 5,389.77 6,653.98 -340.22 Total Value Addition 46,713.82 42,551.00 41,522.96 Preference Dividend 0.21 NIL 45.88 Equity Dividend 1,165.46 1,150.25 709.23 Corporate Dividend Tax 185.71 163.22 154.33 Per share data (annualized) Shares in issue (lakhs) 9,712.14 9,585.43 8,865.43 Earnings Per Share (Rs) 50.95 92.39 -24.44
BALANCESHEET AS ON 31ST MARCH ------------------- in Rs. Cr. -------------- ----- PARTICULARS Mar '12 (in rupees) Mar '11 (in rupees) Mar '10 (in rupees) Mar '09 (in rupees) Mar '08 (in rupees) ----- in Rs. Cr. ------ 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 971.41 959.41 887.41 6,203.45 6,203.30 Equity Share Capital 971.41 959.41 887.41 730.79 730.78 Share Application Money 0 178.2 0 0 0 Preference Share Capital 0 0 0 5,472.66 5,472.52 Reserves 51,245.05 47,307.02 36,281.34 23,501.15 21,097.43 Networth 52,216.46 48,444.63 37,168.75 29,704.60 27,300.73 Secured Loans 1,919.27 2,013.00 2,259.32 3,913.05 3,520.58 Unsecured Loans 21,774.55 26,288.14 22,979.88 23,033.13 14,501.11 Total Debt 23,693.82 28,301.14 25,239.20 26,946.18 18,021.69 Total Liabilities 75,910.28 76,745.77 62,407.95 56,650.78 45,322.42 Application Of Funds Gross Block 23,485.63 22,846.26 22,306.07 20,057.01 16,479.59 Less: Accum. Depreciation 12,119.37 11,041.16 10,143.63 9,062.47 8,223.48 Net Block 11,366.26 11,805.10 12,162.44 10,994.54 8,256.11 Capital Work in 18,506.63 6,969.38 3,843.59 3,487.68 4,367.45 Progress Investments 50,282.52 46,564.94 44,979.67 42,371.78 4,103.19 Inventories 4,858.99 3,953.76 3,077.75 3,480.47 2,604.98 Sundry Debtors 904.08 428.03 434.83 635.98 543.48
Cash and Bank Balance 30.82 512.76 500.3 463.58 465 Total Current Assets 5,793.89 4,894.55 4,012.88 4,580.03 3,613.46 Loans and Advances 6,935.20 16,814.04 6,678.55 5,884.61 34,582.84 Fixed Deposits 3,918.93 3,628.78 2,733.84 1,127.02 0.04 Total CA, Loans & 16,648.02 25,337.37 13,425.27 11,591.66 38,196.34 Advances Current Liabilities 16,975.61 10,383.04 8,699.34 8,965.76 6,842.26 Provisions 3,917.54 3,547.98 3,303.68 2,934.19 2,913.52 Total CL & 20,893.15 13,931.02 12,003.02 11,899.95 9,755.78 Provisions Net Current Assets -4,245.13 11,406.35 1,422.25 -308.29 28,440.56 Miscellaneous Expenses 0 0 0 105.07 155.11 Total Assets 75,910.28 76,745.77 62,407.95 56,650.78 45,322.42 Contingent Liabilities 15,270.84 12,582.24 13,184.61 12,188.55 9,250.08 Book Value (Rs) 537.64 503.19 418.94 331.68 298.78 Analysis:- Borrowings have been consistent. The way the company managed its borrowings was amazing. From negative balances, they turned into Rs 5000 crores positive balances; this was as a result of loans taken to finance Corus deal Investments increased significantly. It can be seen that investments in the last year has increased drastically from negative cash flows to positive cash flows in investment.
trend analysis of balance sheet as on 31st march PARTICULARS Mar '09 Mar '10 Mar '11 Mar '12 Mar '09 Mar '10 Mar '11 Mar '12 (in rupees) (in rupees) (in rupees) (in rupees) % % % % 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 6,203.5 887.4 959.4 971.4 100 14.3 15.5 15.7 Equity Share Capital 730.8 887.4 959.4 971.4 100 121.4 131.3 132.9 Share Application 0.0 NIL NIL NIL NIL NIL NIL NIL Money Preference Share Capital 5,472.7 NIL NIL NIL NIL NIL NIL NIL Reserves 23,501.2 36,281.3 47,307.0 51,245.1 100 154.4 201.3 218.1 Revaluation Reserves 0.0 0.0 0.0 0.0 Networth 29,704.6 37,168.8 48,444.6 52,216.5 100 125.1 163.1 175.8 Secured Loans 3,913.1 2,259.3 2,013.0 1,919.3 100 57.7 51.4 49.0 Unsecured Loans 23,033.1 22,979.9 26,288.1 21,774.6 100 99.8 114.1 94.5 Total Debt 26,946.2 25,239.2 28,301.1 23,693.8 100 93.7 105.0 87.9 Total Liabilities 56,650.8 62,408.0 76,745.8 75,910.3 100 110.2 135.5 134.0 Application Of Funds Gross Block 20,057.0 22,306.1 22,846.3 23,485.6 100 111.2 113.9 117.1 Less: Accum. 9,062.5 10,143.6 11,041.2 12,119.4 100 111.9 121.8 133.7 Depreciation Net Block 10,994.5 12,162.4 11,805.1 11,366.3 100 110.6 107.4 103.4 Capital Work in 3,487.7 3,843.6 6,969.4 18,506.6 100 110.2 199.8 530.6
Progress Investments 42,371.8 44,979.7 46,564.9 50,282.5 100 106.2 109.9 118.7 Inventories 3,480.5 3,077.8 3,953.8 4,859.0 100 88.4 Analysis:- Total share capital of the company saw a great dip due to redemption of preference shares in the year 2009. Reserves are maintained at progressively healthy rate which is clear indication of good profits. Liabilities have shown dip resulting in reduction of liabilities. Company has acquired some new plants which are yet to be completed so capital work in progress has increased substantially. Although there is arise in total assets net current assets have diminished marginally due to heavy provisions. Contingent liabilities thereon has also increased in terms of 2-3% per year 113.6 139.6 Sundry Debtors 636.0 434.8 428.0 904.1 100 68.4 67.3 142.2 Cash and Bank 463.6 500.3 512.8 30.8 100 107.9 110.6 6.6 Balance Total Current Assets 4,580.0 4,012.9 4,894.6 5,793.9 100 87.6 106.9 126.5 Loans and Advances 5,884.6 6,678.6 16,814.0 6,935.2 100 113.5 285.7 117.9 Fixed Deposits 1,127.0 2,733.8 3,628.8 3,918.9 100 242.6 322.0 347.7 Total CA, Loans & 11,591.7 13,425.3 25,337.4 16,648.0 100 115.8 218.6 143.6 Advances Current Liabilities 8,965.8 8,699.3 10,383.0 16,975.6 100 97.0 115.8 189.3 Provisions 2,934.2 3,303.7 3,548.0 3,917.5 100 112.6 120.9 133.5 Total CL & Provisions 11,900.0 12,003.0 13,931.0 20,893.2 100 100.9 117.1 175.6 Net Current Assets -308.3 1,422.3 11,406.4 -4,245.1 100 - 461.3 -3699.9 1377.0 Miscellaneous Expenses 105.1 NIL NIL NIL 100 NIL NIL NIL Total Assets 56,650.8 62,408.0 76,745.8 75,910.3 100 110.2 135.5 134.0
Comparative Analysis For The Year Endings Particulars Mar '11 Mar '12 Absolute Increase /Decrease (Rupees) Absolute Increase /Decrease In % Sources Of Funds Total Share Capital 958.74 993.84 35.1 3.66 Equity Share Capital 958.74 971.41 12.67 1.32 Share Application Money 195.66 17.46 (-178.2) (-91.08) Preference Share Capital NIL 22.43 22.43 NIL Reserves 35,926.97 41,644.81 5717.84 15.92 Networth 37,081.37 42,656.11 5574.74 15.03 Secured loans 28,604.40 27,482.74 (-1121.66) (-3.92) Unsecured Loans 32,079.94 24,729.58 (-7350.36) (-22.91) Total Debt 60,684.34 52,212.32 (-8472.02) (-13.96) Minority Interest 888.9 1,091.15 202.25 22.75 Policy Holders Funds NIL NIL NIL NIL Group Share in Joint Venture NIL NIL NIL NIL Total Liabilities 98,654.61 95,959.58 (-2695.03) (-2.73) Application Of Funds Gross Block 113,399.58 129,093.78 15694.2 13.84 Less: Accum. Depreciation 61,592.15 69,638.85 8046.7 13.06 Net Block 51,807.43 59,454.93 7647.5 14.76 Capital Work in Progress 15,884.17 20,039.71 4155.54 26.16
Investments 7,847.34 4,021.25 (-3826.09) (-48.76) Inventories 24,055.24 25,598.00 1542.76 6.41 Sundry Debtors 14,816.28 14,878.48 62.2 0.42 Cash and Bank Balance 10,892.60 10,801.58 (-91.02) (-0.84) Total Current Assets 49,764.12 51,278.06 1513.94 3.04 Loans and Advances 10,180.08 12,001.92 1821.84 17.90 Fixed Deposits 0 39.39 39.39 0.00 Total CA, Loans & Advances 59,944.20 63,319.37 3375.17 5.63 Current Liabilities 29,738.61 42,790.58 13051.97 43.89 Provisions 7,089.92 8,085.10 995.18 14.04 Total CL & Provisions 36,828.53 50,875.68 14047.15 38.14 Net Current Assets 23,115.67 12,443.69 (-10671.9) (-46.17) Minority Interest NIL NIL NIL NIL Miscellaneous Expenses NIL NIL NIL NIL Total Assets 98,654.61 95,959.58 (-2695.03) (-2.73) Analysis:- The company has shown progressive report in terms of reserves as compared to 2011-12.reserves has increased 15.92% which indicates healthy profits and a good backup. Netblock too has increased at substantial rate. Investments have gone at dip & provisions are raised more affecting the profits directly.
Cash Flow for the Year Endings as On 31st March Net Profit Before Tax 9857.35 9776.85 7214.3 Net Cash From Operating Activities 10256.47 8542.72 8369.22 Net Cash (used in)/from Investing Activities (-2859.11) (-13288.13) (-5254.8) Net Cash (used in)/from Financing Activities (-7599.35) 5652.81 (-1473.1) Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents 4102.52 3234.14 1592.89 Closing Cash & Cash Equivalents 3900.53 4141.54 3234.14 Analysis:- Particulars Mar '12 Mar '11 Mar '10 12 mths 12 mths 12 mths (-201.99) 907.4 1641.25 Cash from financing activities is constantly negative because of heavy dividend payment during the year. Company declared 120% dividend for the years 2011- 12 & 2012-13 each respectively whereas it declared 80% dividend in the year 2010-11 resulting in a dip in cash from financial activities. Cash from operational cycle has increased due to functional or cyclical changes in debtors, creditors or stock of goods . Although cash from investing activities is in adverse sense it has recovered a good amount as compared to the previous years Investments increased significantly. It can be seen that investments in the last year has increased drastically from negative cash flows to positive cash flows in investment.
FINANCIAL RATIOS in rs.cr Mar '12 Mar '11 Mar '10 Investment Valuation Ratios Face Value 10 10 10 Dividend Per Share -- -- -- Operating Profit Per Share (Rs) 127.85 169.36 92.85 Net Operating Profit Per Share (Rs) 1,368.39 1,237.91 1,153.99 Free Reserves Per Share (Rs) -- 332.25 264.37 Bonus in Equity Capital 26.04 26.38 28.52 Profitability Ratios Operating Profit Margin (%) 9.34 13.68 8.04 Profit Before Interest And Tax 5.87 9.93 3.63 Margin (%) Gross Profit Margin (%) 5.94 9.96 3.65 Cash Profit Margin (%) 4.53 8.33 2.87 Adjusted Cash Margin (%) 4.53 8.33 2.63 Net Profit Margin (%) 4 7.54 -1.95 Adjusted Net Profit Margin (%) 4 7.54 -1.95 Return On Capital Employed 9.98 12.46 5.62 (%) Return On Net Worth (%) 12.64 24.35 -8.92 Adjusted Return on Net Worth 3.72 14.94 -7.97 (%) Return on Assets Excluding 438.79 384.81 259.67
Revaluations Return on Assets Including Revaluations 438.79 384.81 259.67 Return on Long Term Funds (%) 9.98 12.54 5.29 Liquidity And Solvency Ratios Current Ratio 1.24 1.59 1.33 Quick Ratio 0.74 0.97 0.77 Debt Equity Ratio 1.23 1.65 2.31 Long Term Debt Equity Ratio 1.23 1.63 2.3 Debt Coverage Ratios Interest Cover 2.23 3.56 1.17 Total Debt to Owners Fund 1.23 1.65 2.31 Management Efficiency Ratios Inventory Turnover Ratio 5.31 5.46 6.14 Debtors Turnover Ratio 8.95 8.98 8.3 Investments Turnover Ratio 5.31 5.46 6.14 Fixed Assets Turnover Ratio 1.22 1.24 1.07 Total Assets Turnover Ratio 1.76 1.47 1.64 Asset Turnover Ratio 1.37 1.24 1.07 Average Finished Goods Held -- 28.21 24.82 Number of Days In Working 33.71 70.13 39.65 Capital Profit & Loss Account Ratios Material Cost Composition 56.09 51.57 50.68 Imported Composition of Raw -- -- -- Materials Consumed Selling Distribution Cost -- 5.57 5.68
Composition Expenses as Composition of Total Sales NIL NIL NIL Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit 25.07 14.62 NIL Dividend Payout Ratio Cash Profit 13.63 9.8 35.44 Earning Retention Ratio 14.83 76.17 -- Cash Earning Retention Ratio 77.87 86.77 67.49 Adjusted Cash Flow Times 8.55 6.11 19.66 Analysis:- Financial ratios are clear indicators of the company performance Net operating profit per share is more or less increased by 100 rs per share which easily satisfies investors. All profitable ratios are increased at substantial growth rate. Quick ratio also known as immediate solvency ratio is at a 3year low point. It is a concern for short term liquidity payment. Investment ratio is a lot fluctuating in nature. Is is low as compared to previous years figure but more than the preceding previous years. Working capital ratio has improved by a very good margin indicating good and efficient use of technology and other variables. Earning retention ratio has decreased because of declaration of higher dividends during the year. All cash flow ratios have more or less improved in some manner.
CAPITAL STRUCTURE OF TATA STEEL Period Instrument Authorized Capital Issued Capital - P A I D U P - From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital 2010 2011 Equity Share 2100 960.13 959214450 10 959.21 2009 2010 Equity Share 1750 888.13 887214196 10 887.21 2008 2009 Equity Share 1750 731.37 730592471 10 730.59 2007 2008 Equity Share 1750 731.37 730584320 10 730.58 2006 2007 Equity Share 1750 581.07 580472856 10 580.47 2005 2006 Equity Share 600 554.07 553472856 10 553.47 2004 2005 Equity Share 600 554.07 553472856 10 553.47 2003 2004 Equity Share 440 368.37 367771901 10 367.77 2002 2003 Equity Share 440 368.37 367771901 10 367.77 2001 2002 Equity Share 440 368.37 367771901 10 367.77 2000 2001 Equity Share 440 368.37 367771901 10 367.77 1999 2000 Equity Share 440 368.37 367771880 10 367.77 1998 1999 Equity Share 440 368.37 367771512 10 367.77 1997 1998 Equity Share 440 368.37 368137405 10 368.14 1996 1997 Equity Share 440 368.37 368136568 10 368.14 1995 1996 Equity Share 440 368.36 368152085 10 368.15 1994 1995 Equity Share 440 338.35 338133839 10 338.13 1993 1994 Equity Share 375 337.54 337329848 10 337.33 1992 1993 Equity Share 375 375 230136540 10 230.14 1990 1992 Equity Share 375 230.35 230136540 10 230.14
1988 1990 Equity Share 275 230.14 230136540 10 230.14 1987 1988 Equity Share 165 156.56 15634412 100 156.34 1985 1987 Equity Share 165 82.84 8262868 100 82.63 1983 1985 Equity Share 85.5 72.23 7201638 100 72.02 1980 1983 Equity Share 88.5 72.23 7201638 100 72.02 1971 1976 Equity Share 38.78 38.74 5144027 75 38.58 1961 1971 Equity Share 27.75 27.72 3674305 75 27.56 1960 1961 Equity Share 27.75 27.75 3671346 75 27.54 1959 1960 Equity Share 23.11 23.11 3069665 75 23.02
BALANCE SHEET OF TATA STEEL'S COMPETING COMPANIES Tata Steel SAIL JSW Steel Visa Steel Mar '12 Mar '12 Mar '12 Mar '12 Sources Of Funds Total Share Capital 971.41 4,130.53 563.18 110 Equity Share 971.41 4,130.53 284.15 110 Capital Share Application Money 0 0 0 0 Preference Share Capital 0 0 279.03 0 Reserves 51,245.05 35,680.79 17,934.31 124.43 Networth 52,216.46 39,811.32 18,497.49 234.43 Secured Loans 1,919.27 7,481.91 9,495.46 1,127.59 Unsecured Loans 21,774.55 8,615.30 2,806.76 75.64 Total Debt 23,693.82 16,097.21 12,302.22 1,203.23 Total Liabilities 75,910.28 55,908.53 30,799.71 1,437.66 Application Of Funds Gross Block 23,485.63 41,367.19 35,118.06 991.29 Less: Accum. 12,119.37 24,239.81 8,000.44 209.45 Depreciation Net Block 11,366.26 17,127.38 27,117.62 781.84 Capital Work in 18,506.63 28,049.14 3,153.51 1,777.68 Progress
Investments 50,282.52 684.94 4,413.42 61.04 Inventories 4,858.99 13,742.37 5,179.08 352.51 Sundry Debtors 904.08 4,761.32 1,362.06 51.58 Cash and Bank 30.82 6,415.70 1,259.47 76.65 Balance Total Current Assets 5,793.89 24,919.39 7,800.61 480.74 Loans and Advances 6,935.20 5,556.17 6,407.82 234.09 Fixed Deposits 3,918.93 0 1,698.13 0 Total CA, Loans & 16,648.02 30,475.56 15,906.56 714.83 Advances Current Liabilities 16,975.61 14,606.26 19,531.58 1,891.28 Provisions 3,917.54 5,822.23 259.82 6.45 Total CL & Provisions 20,893.15 20,428.49 19,791.40 1,897.73 Net Current Assets -4,245.13 10,047.07 -3,884 -1,182.90 Total Assets 75,910.28 55,908.53 30,799.71 1,437.66 Analysis:- Even though SAIL has much more total share capital amount than that of Tata steel the strength and progress of Tata steel is much healthier than later. Increasing provisions is the only growing concern for Tata steel as it is directly affecting NET CURRENT ASSETS and its profit margins. Inner strength and basics of Tata steel is much more profit generating than that of others.

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Tatasteelfinancialanalysiswithcommentsontrendandcomparativebalanceshhet 121226042808-phpapp01 (1)

  • 1. KES SHROFF COLLEGE OF ARTS AND COMMERCE NAAC Accredited A Grade (CGPA 3.16) and ISO 9001:2008 Certified PROJECT REPORT ON FINANCIAL ANALYSISI OF TATA STEEL COMPANY SUBMITTED BY NIRAV .S. CHAUHAN T..Y..B..Com.. C-- 08 SUBMITTED TO UNIIVERSIITY OF MUMBAII PROJECT GUIDE Mr. V. S. KANNAN ACADEMIC YEAR 2012 2013
  • 2. KANDIVLI EDUCATION SOCIETYS B.K. Shroff College of Arts & M.H. Shroff College of Commerce Bhulabhai Desai Road, Kandivli (West), Mumbai 400067 NAAC Accredited A Grade(CGPA 3.16) and ISO 9001:2008 Certified PROJJECT REPORT FINACIAL ANALYSISI OF TATA STEEL COMPANY SUBMIITTED BY NIIRAV ..S.. CHAUHAN T..Y..BACHELOR OF COMMERCE SUBMIITTED TO UNIVERSITY OF MUMBAI PROJECT GUIIDE NAME OF THE GUIDE Mr. V. S. Kannan ACADEMIIC YEAR 2012 2013
  • 3. KANDIVLI EDUCATION SOCIETYS B.K. Shroff College of Arts & M.H. Shroff College of Commerce Bhulabhai Desai Road, Kandivli (West), Mumbai 400067 NAAC Accredited A Grade(CGPA 3.16) and ISO 9001:2008 Certified C E R T I F I C A T E This is to certify that NIRAV .S. CHAUHAN of T.Y.B.Com A-31, has successfully completed a project on FINANCIAL ANALYSIS OF TATA STEEL COMPANY under the guidance of MR. V.S.KANNAN during the academic year 2012-2013 Co-ordinator Project Guide Principal Internal Examiner External Examiner College Seal
  • 4. DECLARATION I MR. NIRAV .S. CHAUHAN of K.E.S. SHROFF COLLEGE OF ARTS & COMMERCE, student of T.Y.BCOM A-31,Management Account Project, hereby declare that I have completed my project title FINANCIAL ANALYSIS OF TATA STEEL COMPANY I also declare that this project which has been the partial fulfillment of the requirement of the degree of T.Y.B.COM of the Mumbai University has been the result of my efforts. Signature of Student _________________
  • 5. ACKNOWLEDGEMENT I have sincerely done my project alloted to me. I would like to thank our vice Principal Mr. V. S. Kannan., the guide for giving her valuable suggestion and guidance. I would also like to thank our Principal Dr. LILY BHUSHAN. It gives me immense pleasure to present this project in the Project of Management Accounts. I would like to thank all those people who gave me their opinion without their help this project would not be possible to submit in time. NIRAV
  • 6. INDEX PARTICULARS PAGE NO Introduction 1 Financial Analysis 5 - Profit & Loss A/C 6 - Balance Sheet 8 - Trend Analysis 10 -Comparative Statements 12 - Cash Flow 14 - Financial Ratios 15 -Capital structure 18 Peer To Peer Comparison 20
  • 7. Introduction Backed by 100 glorious years of experience in steel making, Tata Steel is among the top ten steel producers in the world with an existing annual crude steel production capacity of 30 Million Tons Per Annum (MTPA). Established in 1907, it is the first integrated steel plant in Asia and is now the world`s second most geographically diversified steel producer and a Fortune 500 Company. Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. It was the vision of the founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the first stake was driven into the soil of Sakchi. His vision helped Tata Steel overcome several periods of adversity and strive to improve against all odds. Tata Steel`s Jamshedpur (India) Works has a crude steel production capacity of 6.8 MTPA which is slated to increase to 10 MTPA by 2010.
  • 8. The Company also has proposed three Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam. Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and NatSteel Holdings, Singapore, Tata Steel has created a manufacturing and marketing network in Europe, South East Asia and the pacific-rim countries. Corus, which manufactured over 20 MTPA of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway and Belgium. Tata Steel Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MTPA. Tata Steel has proposed a 0.5 MTPA mini blast furnace project in Thailand. NatSteel Holdings produces about 2 MTPA of steel products across its regional operations in seven countries. Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction applications market. The iron ore mines and collieries in India give the Company a distinct advantage in raw material sourcing. Tata Steel is also striving towards raw materials security through joint ventures in Thailand, Australia, Mozambique, Ivory Coast (West Africa) and Oman. Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also, Tata Steel has bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining. Exploration of opportunities in titanium dioxide business in Tamil Nadu, ferro-chrome plant in South Africa and setting up of a deep-sea port in coastal Orissa are integral to the Growth and Globalisation objective of Tata Steel. Tata Steels vision is to be the global steel industry benchmark for Value Creation and Corporate Citizenship.
  • 9. Tata Steel India is the first integrated steel company in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in Total Quality Management. THE TATA GROUP Before we discuss at the length of the company, we would like to throw some light on the Tata Group of companies in present day India.
  • 10. Tata Steel is one of the ventures of the Tat Group but it has many successful companies under one umbrella. Some of the other notable Tata concerns and their lines of businesses are shown below.
  • 13. P&L a/c For The Year Endings *rupees in crores Particulars Mar '12 Mar '11 Mar '10 Income Sales Turnover 135,975.56 121,345.75 104,229.83 Excise Duty 3,075.86 2,686.43 1,924.00 Net Sales 132,899.70 118,659.32 102,305.83 Other Income 4,934.95 3,687.41 -61.87 Stock Adjustments 785.93 1,355.98 -660.04 Total Income 138,620.58 123,702.71 101,583.92 Expenditure Raw Materials 74,555.02 61,193.71 51,855.32 Power & Fuel Cost 5,935.48 4,889.18 4,885.05 Employee Cost 17,228.64 15,286.92 16,462.99 Other Manufacturing Expenses 7,456.60 6,606.07 6,053.34 Selling and Admin Expenses 0 11,009.76 9,599.68 Miscellaneous Expenses 16,950.73 4,978.70 4,687.37 Preoperative Exp Capitalized -857.63 -219.63 -165.47 Total Expenses 121,268.84 103,744.71 93,378.28 Operating Profit 12,416.79 16,270.59 8,267.51
  • 14. PBDIT 17,351.74 19,958.00 8,205.64 Interest 4,250.11 3,426.67 3,659.77 PBDT 13,101.63 16,531.33 4,545.87 Depreciation 4,516.65 4,414.82 4,491.73 Profit Before Tax 8,584.98 12,116.51 54.14 Extra-ordinary items 0 18.5 14.72 PBT (Post Extra-ord Items) 8,584.98 12,135.01 68.86 Tax 3,636.46 3,247.26 2,153.46 Reported Net Profit 4,948.52 8,856.05 -2,120.84 Minority Interest -173.14 -60.28 15.24 Share Of P/L Of Associates -268.11 -66.36 -126.86 Net P/L After Minority Interest & Share Of Associates 5,389.77 6,653.98 -340.22 Total Value Addition 46,713.82 42,551.00 41,522.96 Preference Dividend 0.21 NIL 45.88 Equity Dividend 1,165.46 1,150.25 709.23 Corporate Dividend Tax 185.71 163.22 154.33 Per share data (annualized) Shares in issue (lakhs) 9,712.14 9,585.43 8,865.43 Earnings Per Share (Rs) 50.95 92.39 -24.44
  • 15. BALANCESHEET AS ON 31ST MARCH ------------------- in Rs. Cr. -------------- ----- PARTICULARS Mar '12 (in rupees) Mar '11 (in rupees) Mar '10 (in rupees) Mar '09 (in rupees) Mar '08 (in rupees) ----- in Rs. Cr. ------ 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 971.41 959.41 887.41 6,203.45 6,203.30 Equity Share Capital 971.41 959.41 887.41 730.79 730.78 Share Application Money 0 178.2 0 0 0 Preference Share Capital 0 0 0 5,472.66 5,472.52 Reserves 51,245.05 47,307.02 36,281.34 23,501.15 21,097.43 Networth 52,216.46 48,444.63 37,168.75 29,704.60 27,300.73 Secured Loans 1,919.27 2,013.00 2,259.32 3,913.05 3,520.58 Unsecured Loans 21,774.55 26,288.14 22,979.88 23,033.13 14,501.11 Total Debt 23,693.82 28,301.14 25,239.20 26,946.18 18,021.69 Total Liabilities 75,910.28 76,745.77 62,407.95 56,650.78 45,322.42 Application Of Funds Gross Block 23,485.63 22,846.26 22,306.07 20,057.01 16,479.59 Less: Accum. Depreciation 12,119.37 11,041.16 10,143.63 9,062.47 8,223.48 Net Block 11,366.26 11,805.10 12,162.44 10,994.54 8,256.11 Capital Work in 18,506.63 6,969.38 3,843.59 3,487.68 4,367.45 Progress Investments 50,282.52 46,564.94 44,979.67 42,371.78 4,103.19 Inventories 4,858.99 3,953.76 3,077.75 3,480.47 2,604.98 Sundry Debtors 904.08 428.03 434.83 635.98 543.48
  • 16. Cash and Bank Balance 30.82 512.76 500.3 463.58 465 Total Current Assets 5,793.89 4,894.55 4,012.88 4,580.03 3,613.46 Loans and Advances 6,935.20 16,814.04 6,678.55 5,884.61 34,582.84 Fixed Deposits 3,918.93 3,628.78 2,733.84 1,127.02 0.04 Total CA, Loans & 16,648.02 25,337.37 13,425.27 11,591.66 38,196.34 Advances Current Liabilities 16,975.61 10,383.04 8,699.34 8,965.76 6,842.26 Provisions 3,917.54 3,547.98 3,303.68 2,934.19 2,913.52 Total CL & 20,893.15 13,931.02 12,003.02 11,899.95 9,755.78 Provisions Net Current Assets -4,245.13 11,406.35 1,422.25 -308.29 28,440.56 Miscellaneous Expenses 0 0 0 105.07 155.11 Total Assets 75,910.28 76,745.77 62,407.95 56,650.78 45,322.42 Contingent Liabilities 15,270.84 12,582.24 13,184.61 12,188.55 9,250.08 Book Value (Rs) 537.64 503.19 418.94 331.68 298.78 Analysis:- Borrowings have been consistent. The way the company managed its borrowings was amazing. From negative balances, they turned into Rs 5000 crores positive balances; this was as a result of loans taken to finance Corus deal Investments increased significantly. It can be seen that investments in the last year has increased drastically from negative cash flows to positive cash flows in investment.
  • 17. trend analysis of balance sheet as on 31st march PARTICULARS Mar '09 Mar '10 Mar '11 Mar '12 Mar '09 Mar '10 Mar '11 Mar '12 (in rupees) (in rupees) (in rupees) (in rupees) % % % % 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 6,203.5 887.4 959.4 971.4 100 14.3 15.5 15.7 Equity Share Capital 730.8 887.4 959.4 971.4 100 121.4 131.3 132.9 Share Application 0.0 NIL NIL NIL NIL NIL NIL NIL Money Preference Share Capital 5,472.7 NIL NIL NIL NIL NIL NIL NIL Reserves 23,501.2 36,281.3 47,307.0 51,245.1 100 154.4 201.3 218.1 Revaluation Reserves 0.0 0.0 0.0 0.0 Networth 29,704.6 37,168.8 48,444.6 52,216.5 100 125.1 163.1 175.8 Secured Loans 3,913.1 2,259.3 2,013.0 1,919.3 100 57.7 51.4 49.0 Unsecured Loans 23,033.1 22,979.9 26,288.1 21,774.6 100 99.8 114.1 94.5 Total Debt 26,946.2 25,239.2 28,301.1 23,693.8 100 93.7 105.0 87.9 Total Liabilities 56,650.8 62,408.0 76,745.8 75,910.3 100 110.2 135.5 134.0 Application Of Funds Gross Block 20,057.0 22,306.1 22,846.3 23,485.6 100 111.2 113.9 117.1 Less: Accum. 9,062.5 10,143.6 11,041.2 12,119.4 100 111.9 121.8 133.7 Depreciation Net Block 10,994.5 12,162.4 11,805.1 11,366.3 100 110.6 107.4 103.4 Capital Work in 3,487.7 3,843.6 6,969.4 18,506.6 100 110.2 199.8 530.6
  • 18. Progress Investments 42,371.8 44,979.7 46,564.9 50,282.5 100 106.2 109.9 118.7 Inventories 3,480.5 3,077.8 3,953.8 4,859.0 100 88.4 Analysis:- Total share capital of the company saw a great dip due to redemption of preference shares in the year 2009. Reserves are maintained at progressively healthy rate which is clear indication of good profits. Liabilities have shown dip resulting in reduction of liabilities. Company has acquired some new plants which are yet to be completed so capital work in progress has increased substantially. Although there is arise in total assets net current assets have diminished marginally due to heavy provisions. Contingent liabilities thereon has also increased in terms of 2-3% per year 113.6 139.6 Sundry Debtors 636.0 434.8 428.0 904.1 100 68.4 67.3 142.2 Cash and Bank 463.6 500.3 512.8 30.8 100 107.9 110.6 6.6 Balance Total Current Assets 4,580.0 4,012.9 4,894.6 5,793.9 100 87.6 106.9 126.5 Loans and Advances 5,884.6 6,678.6 16,814.0 6,935.2 100 113.5 285.7 117.9 Fixed Deposits 1,127.0 2,733.8 3,628.8 3,918.9 100 242.6 322.0 347.7 Total CA, Loans & 11,591.7 13,425.3 25,337.4 16,648.0 100 115.8 218.6 143.6 Advances Current Liabilities 8,965.8 8,699.3 10,383.0 16,975.6 100 97.0 115.8 189.3 Provisions 2,934.2 3,303.7 3,548.0 3,917.5 100 112.6 120.9 133.5 Total CL & Provisions 11,900.0 12,003.0 13,931.0 20,893.2 100 100.9 117.1 175.6 Net Current Assets -308.3 1,422.3 11,406.4 -4,245.1 100 - 461.3 -3699.9 1377.0 Miscellaneous Expenses 105.1 NIL NIL NIL 100 NIL NIL NIL Total Assets 56,650.8 62,408.0 76,745.8 75,910.3 100 110.2 135.5 134.0
  • 19. Comparative Analysis For The Year Endings Particulars Mar '11 Mar '12 Absolute Increase /Decrease (Rupees) Absolute Increase /Decrease In % Sources Of Funds Total Share Capital 958.74 993.84 35.1 3.66 Equity Share Capital 958.74 971.41 12.67 1.32 Share Application Money 195.66 17.46 (-178.2) (-91.08) Preference Share Capital NIL 22.43 22.43 NIL Reserves 35,926.97 41,644.81 5717.84 15.92 Networth 37,081.37 42,656.11 5574.74 15.03 Secured loans 28,604.40 27,482.74 (-1121.66) (-3.92) Unsecured Loans 32,079.94 24,729.58 (-7350.36) (-22.91) Total Debt 60,684.34 52,212.32 (-8472.02) (-13.96) Minority Interest 888.9 1,091.15 202.25 22.75 Policy Holders Funds NIL NIL NIL NIL Group Share in Joint Venture NIL NIL NIL NIL Total Liabilities 98,654.61 95,959.58 (-2695.03) (-2.73) Application Of Funds Gross Block 113,399.58 129,093.78 15694.2 13.84 Less: Accum. Depreciation 61,592.15 69,638.85 8046.7 13.06 Net Block 51,807.43 59,454.93 7647.5 14.76 Capital Work in Progress 15,884.17 20,039.71 4155.54 26.16
  • 20. Investments 7,847.34 4,021.25 (-3826.09) (-48.76) Inventories 24,055.24 25,598.00 1542.76 6.41 Sundry Debtors 14,816.28 14,878.48 62.2 0.42 Cash and Bank Balance 10,892.60 10,801.58 (-91.02) (-0.84) Total Current Assets 49,764.12 51,278.06 1513.94 3.04 Loans and Advances 10,180.08 12,001.92 1821.84 17.90 Fixed Deposits 0 39.39 39.39 0.00 Total CA, Loans & Advances 59,944.20 63,319.37 3375.17 5.63 Current Liabilities 29,738.61 42,790.58 13051.97 43.89 Provisions 7,089.92 8,085.10 995.18 14.04 Total CL & Provisions 36,828.53 50,875.68 14047.15 38.14 Net Current Assets 23,115.67 12,443.69 (-10671.9) (-46.17) Minority Interest NIL NIL NIL NIL Miscellaneous Expenses NIL NIL NIL NIL Total Assets 98,654.61 95,959.58 (-2695.03) (-2.73) Analysis:- The company has shown progressive report in terms of reserves as compared to 2011-12.reserves has increased 15.92% which indicates healthy profits and a good backup. Netblock too has increased at substantial rate. Investments have gone at dip & provisions are raised more affecting the profits directly.
  • 21. Cash Flow for the Year Endings as On 31st March Net Profit Before Tax 9857.35 9776.85 7214.3 Net Cash From Operating Activities 10256.47 8542.72 8369.22 Net Cash (used in)/from Investing Activities (-2859.11) (-13288.13) (-5254.8) Net Cash (used in)/from Financing Activities (-7599.35) 5652.81 (-1473.1) Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents 4102.52 3234.14 1592.89 Closing Cash & Cash Equivalents 3900.53 4141.54 3234.14 Analysis:- Particulars Mar '12 Mar '11 Mar '10 12 mths 12 mths 12 mths (-201.99) 907.4 1641.25 Cash from financing activities is constantly negative because of heavy dividend payment during the year. Company declared 120% dividend for the years 2011- 12 & 2012-13 each respectively whereas it declared 80% dividend in the year 2010-11 resulting in a dip in cash from financial activities. Cash from operational cycle has increased due to functional or cyclical changes in debtors, creditors or stock of goods . Although cash from investing activities is in adverse sense it has recovered a good amount as compared to the previous years Investments increased significantly. It can be seen that investments in the last year has increased drastically from negative cash flows to positive cash flows in investment.
  • 22. FINANCIAL RATIOS in rs.cr Mar '12 Mar '11 Mar '10 Investment Valuation Ratios Face Value 10 10 10 Dividend Per Share -- -- -- Operating Profit Per Share (Rs) 127.85 169.36 92.85 Net Operating Profit Per Share (Rs) 1,368.39 1,237.91 1,153.99 Free Reserves Per Share (Rs) -- 332.25 264.37 Bonus in Equity Capital 26.04 26.38 28.52 Profitability Ratios Operating Profit Margin (%) 9.34 13.68 8.04 Profit Before Interest And Tax 5.87 9.93 3.63 Margin (%) Gross Profit Margin (%) 5.94 9.96 3.65 Cash Profit Margin (%) 4.53 8.33 2.87 Adjusted Cash Margin (%) 4.53 8.33 2.63 Net Profit Margin (%) 4 7.54 -1.95 Adjusted Net Profit Margin (%) 4 7.54 -1.95 Return On Capital Employed 9.98 12.46 5.62 (%) Return On Net Worth (%) 12.64 24.35 -8.92 Adjusted Return on Net Worth 3.72 14.94 -7.97 (%) Return on Assets Excluding 438.79 384.81 259.67
  • 23. Revaluations Return on Assets Including Revaluations 438.79 384.81 259.67 Return on Long Term Funds (%) 9.98 12.54 5.29 Liquidity And Solvency Ratios Current Ratio 1.24 1.59 1.33 Quick Ratio 0.74 0.97 0.77 Debt Equity Ratio 1.23 1.65 2.31 Long Term Debt Equity Ratio 1.23 1.63 2.3 Debt Coverage Ratios Interest Cover 2.23 3.56 1.17 Total Debt to Owners Fund 1.23 1.65 2.31 Management Efficiency Ratios Inventory Turnover Ratio 5.31 5.46 6.14 Debtors Turnover Ratio 8.95 8.98 8.3 Investments Turnover Ratio 5.31 5.46 6.14 Fixed Assets Turnover Ratio 1.22 1.24 1.07 Total Assets Turnover Ratio 1.76 1.47 1.64 Asset Turnover Ratio 1.37 1.24 1.07 Average Finished Goods Held -- 28.21 24.82 Number of Days In Working 33.71 70.13 39.65 Capital Profit & Loss Account Ratios Material Cost Composition 56.09 51.57 50.68 Imported Composition of Raw -- -- -- Materials Consumed Selling Distribution Cost -- 5.57 5.68
  • 24. Composition Expenses as Composition of Total Sales NIL NIL NIL Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit 25.07 14.62 NIL Dividend Payout Ratio Cash Profit 13.63 9.8 35.44 Earning Retention Ratio 14.83 76.17 -- Cash Earning Retention Ratio 77.87 86.77 67.49 Adjusted Cash Flow Times 8.55 6.11 19.66 Analysis:- Financial ratios are clear indicators of the company performance Net operating profit per share is more or less increased by 100 rs per share which easily satisfies investors. All profitable ratios are increased at substantial growth rate. Quick ratio also known as immediate solvency ratio is at a 3year low point. It is a concern for short term liquidity payment. Investment ratio is a lot fluctuating in nature. Is is low as compared to previous years figure but more than the preceding previous years. Working capital ratio has improved by a very good margin indicating good and efficient use of technology and other variables. Earning retention ratio has decreased because of declaration of higher dividends during the year. All cash flow ratios have more or less improved in some manner.
  • 25. CAPITAL STRUCTURE OF TATA STEEL Period Instrument Authorized Capital Issued Capital - P A I D U P - From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital 2010 2011 Equity Share 2100 960.13 959214450 10 959.21 2009 2010 Equity Share 1750 888.13 887214196 10 887.21 2008 2009 Equity Share 1750 731.37 730592471 10 730.59 2007 2008 Equity Share 1750 731.37 730584320 10 730.58 2006 2007 Equity Share 1750 581.07 580472856 10 580.47 2005 2006 Equity Share 600 554.07 553472856 10 553.47 2004 2005 Equity Share 600 554.07 553472856 10 553.47 2003 2004 Equity Share 440 368.37 367771901 10 367.77 2002 2003 Equity Share 440 368.37 367771901 10 367.77 2001 2002 Equity Share 440 368.37 367771901 10 367.77 2000 2001 Equity Share 440 368.37 367771901 10 367.77 1999 2000 Equity Share 440 368.37 367771880 10 367.77 1998 1999 Equity Share 440 368.37 367771512 10 367.77 1997 1998 Equity Share 440 368.37 368137405 10 368.14 1996 1997 Equity Share 440 368.37 368136568 10 368.14 1995 1996 Equity Share 440 368.36 368152085 10 368.15 1994 1995 Equity Share 440 338.35 338133839 10 338.13 1993 1994 Equity Share 375 337.54 337329848 10 337.33 1992 1993 Equity Share 375 375 230136540 10 230.14 1990 1992 Equity Share 375 230.35 230136540 10 230.14
  • 26. 1988 1990 Equity Share 275 230.14 230136540 10 230.14 1987 1988 Equity Share 165 156.56 15634412 100 156.34 1985 1987 Equity Share 165 82.84 8262868 100 82.63 1983 1985 Equity Share 85.5 72.23 7201638 100 72.02 1980 1983 Equity Share 88.5 72.23 7201638 100 72.02 1971 1976 Equity Share 38.78 38.74 5144027 75 38.58 1961 1971 Equity Share 27.75 27.72 3674305 75 27.56 1960 1961 Equity Share 27.75 27.75 3671346 75 27.54 1959 1960 Equity Share 23.11 23.11 3069665 75 23.02
  • 27. BALANCE SHEET OF TATA STEEL'S COMPETING COMPANIES Tata Steel SAIL JSW Steel Visa Steel Mar '12 Mar '12 Mar '12 Mar '12 Sources Of Funds Total Share Capital 971.41 4,130.53 563.18 110 Equity Share 971.41 4,130.53 284.15 110 Capital Share Application Money 0 0 0 0 Preference Share Capital 0 0 279.03 0 Reserves 51,245.05 35,680.79 17,934.31 124.43 Networth 52,216.46 39,811.32 18,497.49 234.43 Secured Loans 1,919.27 7,481.91 9,495.46 1,127.59 Unsecured Loans 21,774.55 8,615.30 2,806.76 75.64 Total Debt 23,693.82 16,097.21 12,302.22 1,203.23 Total Liabilities 75,910.28 55,908.53 30,799.71 1,437.66 Application Of Funds Gross Block 23,485.63 41,367.19 35,118.06 991.29 Less: Accum. 12,119.37 24,239.81 8,000.44 209.45 Depreciation Net Block 11,366.26 17,127.38 27,117.62 781.84 Capital Work in 18,506.63 28,049.14 3,153.51 1,777.68 Progress
  • 28. Investments 50,282.52 684.94 4,413.42 61.04 Inventories 4,858.99 13,742.37 5,179.08 352.51 Sundry Debtors 904.08 4,761.32 1,362.06 51.58 Cash and Bank 30.82 6,415.70 1,259.47 76.65 Balance Total Current Assets 5,793.89 24,919.39 7,800.61 480.74 Loans and Advances 6,935.20 5,556.17 6,407.82 234.09 Fixed Deposits 3,918.93 0 1,698.13 0 Total CA, Loans & 16,648.02 30,475.56 15,906.56 714.83 Advances Current Liabilities 16,975.61 14,606.26 19,531.58 1,891.28 Provisions 3,917.54 5,822.23 259.82 6.45 Total CL & Provisions 20,893.15 20,428.49 19,791.40 1,897.73 Net Current Assets -4,245.13 10,047.07 -3,884 -1,182.90 Total Assets 75,910.28 55,908.53 30,799.71 1,437.66 Analysis:- Even though SAIL has much more total share capital amount than that of Tata steel the strength and progress of Tata steel is much healthier than later. Increasing provisions is the only growing concern for Tata steel as it is directly affecting NET CURRENT ASSETS and its profit margins. Inner strength and basics of Tata steel is much more profit generating than that of others.