Project 1

COMPARATIVE RATIO ANALYSIS OF HINDALCO INDUSTRIES AND TATA STEEL
PROJECT REPORT ON
COMPARATIVE RATIO ANALYSIS OF
HINDALCO INDUSTRIES AND TATA STEEL
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

OF
MASTER OF MANAGEMENT STUDIES
BY
JAGDISH SINGH BOLYAN
ROLL NO 2018021
MMS-II (SEM III)
YEAR 2018- 2020
LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI – 400034
PROJECT REPORT ON
IN
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

OF
MASTER OF MANAGEMENT STUDIES
BY
ROLL NO 2018021
MMS-II (SEM III)
YEAR 2018-2020
LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI - 400034
SUMMER INTERNSHIP PROJECT
SUBMITTED BY
ROLL NO – 2018021
MMS – II (SEM III)
YEAR 2018 - 2020

COLOURED XEROX OF THE INTERNSHIP CERTIFICATE GIVEN

BY THE COMPANY
Certificate
This is to certify that the project work titled “Ratio Analysis of Hindalco
Industries and Tata Steel” is a summer internship work carried out by Mr.
The project was completed for “IIFL LTD”, under the guidance of Mr KETAN
BHATIA
I further certify that the said work has not been submitted in the part or in full, to
any other University.
Date: 11th September, 2019
_____________________ __________________________
Prof. Vikas Sharma Dr V.B. Angadi

Project Guide Director
DECLARATION
I, Jagdish Singh Bolyan , student of Lala Lajpatrai Institute of Management of

MMS II (Semester III) hereby declare that I have completed the summer
internship project on Comparative Ratio Analysis of Hindalco Industries and
Tata Steel with IIFL Ltd in the Academic year 2018 - 2020. The information
submitted is true & original to the best of my knowledge.
Name of the student

ACKNOWLEDGEMENT
At the outset of this project, I would like to express my profound thanks to a few
people without whose help, completion of this project would not have been
possible.
First and foremost, I would like to express sincere thanks to IIFL ltd for giving
me this opportunity to work with them.
The list is endless but to name a few special people, I would like to thank
Kaustubh Chakravarti for being extremely supportive and guiding me
throughout my internship and giving me constant motivation and expert advice.
I would also like to thank the entire for providing me their precious time and
making this internship a successful learning experience.
I am very grateful to Dr. Angadi, Director of Lala Lajpat Rai Institute of

Management, for giving me the opportunity to do this project in IIFL Ltd.
I would also like to thank Prof. Vikas Sharma for being an excellent mentor and
helping me whenever I approached him.
Last but not the least; I take pride in thanking my parents Mr Ranjit Singh
Bolyan &Mrs Jaswinder Kaur Bolyan, siblings and friends for their much
valued support.
EXECUTIVE SUMMARY
This report is an analysis of the financial operations and performance of the

company for the year 2018 and 2019. This report will provide an assessment and
analysis of the profitability, liquidity, performance and financial position of
Hindalco Industries and Tata Steel ltd using figures from the financial statements
for the year 2018 and 2019. In the analysis, financial ratios were used to gain a
critical review of the specific areas of assessment of the company’s performance.
The ratios will be able to provide a clear view of the overall performance of the
company. The Sector chosen here is a Metal Sector.
Ratio analysis is one of the techniques of financial analysis where ratios are used
as yardstick for evaluating the financial conditions and performance of the
firm.Both Hindalco Industries and Tata Steel are the leaders of their markets which
majorly comprises of the Indian marketboth of them are from the sectoe which
deals in metals in these project we are going to which company fairs better than the
other
DATA COLLECTION
For analysis, secondary data is used where the information is collected from
different sources like newspapers, internet websites such as Money
control,Investing.com, value research, equity master and many more.
Data collection includes values from balance sheet and profit/loss statement,
technical charts and etc.
INDEX
SR. CONTENT PAGE NO.

NO.
1 INTRODUCTION 1
2 OBJECTIVES AND TECHNIQUES 2
3 HINDALCO INDUSTRIES 3
4 YEAR EVENT OF HINDALCO 7

INDUSTRIES
5 TATA STEEL 27
6 YEAR EVENTS OF TATA STEEL 30
7 BALANCE SHEET AND PROFIT AND 40

LOSS HINDALCO
8 BALANCE SHEET AND PROFIT AND 55
LOSS TATA STEEL
9 RATIOS OF HINDALCO INDUSTRIES 60
AND TATA STEEL
10 FINDINGS/CONCLUSIONS 65
11 BIBLIOGRAPHY 67
INTRODUCTION
IIFL is a financial services conglomerate which was started by a group of passionate

entrepreneurs in 1995. The genesis of IIFL lies in the power of dreaming big and believing in
your dreams.
IIFL was the pioneer in the retail broking industry with its launch of 5paisa trading platform
which offered the lowest brokerage in the industry and the freedom from traditional ways of
transacting. Our strength has been to continuously innovate and reinvent ourselves. IIFL’s
evolution from an entrepreneurial start-up in 1995 to a full range diversified financial
services group is a story of steady growth by adapting to the dynamic business environment,
without losing focus on our core domain of financial services.
Today, IIFL Holdings Limited (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: 532636) is
India’s leading integrated financial services group with diverse operating businesses, mainly,
Non Banking and Housing Finance, Wealth and Asset Management, Financial Advisory and
Broking, Mutual Funds and Financial Product Distribution, Investment Banking, Institutional
Equities, Realty Broking and Advisory Services.
IIFL serves more than 4 million satisfied customers across various business segments and is
continuously building on its strengths to deliver excellent service to its expanding customer
base.
Vision
To be the most respected financial services company in India.
Values
Fairness in our transactions with all stakeholders including employees, customers, and
vendors, bereft of fear or favour.
1
Integrity and honesty of the utmost nature, in letter, in spirit, and in all our dealings with
people, internal or external.
Transparency in all our dealings with stakeholders, media, investors, and the public at large.
Objectives
 To study the profitability of Hindalco Industries and Tata Steel.

 To study the liquidity position.
 To find activity turnover
 To study operating efficiency
Measurement technique/Statistical tools
-Accounting Ratios
-Excel sheets
-Financial statements of the company
2
Hindalco Industries Limited, metals flagship company of the Aditya Birla Group, is the
industry leader in aluminium and copper. With a consolidated turnover of US$18.7 billion,
Hindalco is the world’s largest aluminium rolling company and one of Asia’s biggest
producers of primary aluminium. Its state-of-art copper facility comprises a world-class
copper smelter and a fertiliser plant along with a captive jetty. The copper smelter is among
the world’s largest custom smelters at a single location.
In India, the company’s aluminium units across the country encompass the gamut of
operations from bauxite mining, alumina refining, coal mining, captive power plants and
aluminium smelting to downstream rolling, extrusions and foils. Today, Hindalco ranks
among the global aluminium majors as an integrated producer and a footprint in 10 countries
outside India.
The Birla Copper unit produces copper cathodes and continuous cast copper rods, along with
other by-products, including gold, silver, and DAP fertilisers. It is India’s largest private
producer of gold.
Hindalco has been accorded Star Trading House status in India. Its aluminium is accepted for
delivery under the High-Grade Aluminium Contract on the London Metal Exchange (LME),
while its copper quality is also registered on the LME with Grade A accreditation.
The Hindustan Aluminum Corporation Limited was established in 1958 by the Aditya Birla
Group. In 1962 the company began production in Renukoot in Uttar Pradesh making 20
thousand metric tons per year of aluminium metal and 40 thousand metric tons per year of
alumina. In 1989 the company was restructured and renamed Hindalco
3
Vision
To be a premium metals major, global in size and reach, excelling in everything we do, and
creating value for its stakeholders.
Mission
To relentlessly pursue the creation of superior shareholder value, by exceeding customer

expectation profitably, unleashing employee potential, while being a responsible corporate
citizen, adhering to our values.
Values
Honesty in every action
4
On the foundation of integrity, doing what it takes to deliver, as promised
Missionary zeal arising out of an emotional engagement with work
5
Thinking and working together across functional silos, hierarchy levels, businesses and
geographies
Responding to stakeholders with a sense of urgency
6
HISTORY OF HINDALCO INDUSTRIES
1958
- The Company was Incorporated on 15th December, at Mumbai to manufacture alumina,

aluminium and aluminium fabricated items.
- The Company was formed by the house of Birlas in collaboration with the Kaiser
Organisation of U.S.A. According to the Company's agreement with Kaiser Aluminium and
Chemical Corporation, the Collaborators agreed to allot to the Collaborators 4,80,000 fully
paid-up equity shares of Rs 10 each.
- The Company also concluded Technical Advisers and Consultants Agreements with Kaiser
Aluminium Technical Services Inc., California, who agreed to train the Indian technical
personnel, to supply the Company necessary technical advice, to assist in operating the plant
including aluminium fabrication and to provide information for a period of 20 years on all
technical matters.
- An agreement was also entered into with Henry J. Kaiser Company for such design,
engineering procurement and related services with regard to the construction of the plant at
Rihand as were to be performed outside India and with Kaiser Engineers Overseas
Corporation for such services to be rendered in India.
1960
- 2,50,000 Pref. & 58,50,000 equity shares issued through a prospectus of which 4,80,000
shares allotted without payment in cash to Kaiser Aluminium Corporation and 9,61,000
shares against cash. 1,20,000 shares to Kaiser Aluminium Technical Services Inc. allotted
without payment in cash 21,33,000 shares to Birla Gwalior Pvt. Ltd. & 21,56,000 shares to
public.
1961
7
- Rate of dividend on pref. shares altered. In 1962, 10,750 No. of equity shares & 300 pref.
shares forfeited. Forteiture on 2,250 No. of equity shares annulled.
1964
- The Properzi mill plant was set up for the production of redraw rods with a rated capacity of
6,000 tonnes per annum.
- Forfeiture on 30 pref. and 3,950 No. of equity shares annulled. Another 2,250 No. of equity
shares forfeited. Arrears: Rs 4,000.
1965
- An extrusion press and rolling mill for the production of aluminium extrusions and rolled
products (sheets, etc.) was installed with rated capacity of 2,000 tonnes and 7,000 tonnes
respectively, thus bringing the total capacity of the fabrication plant to 15,000 tonnes per
annum.
- The annual licensed production capacity of the primary metal of 60,000 tonnes was
achieved. Several modifications in the plant were also implemented which enhanced the
Company's production of primary metal to 200 tonnes per day by the end of 1968.
1967
- Another Properzi mill plant was commissioned which expanded the fabrication plant
capacity from 15,000 tonnes per annum to 37,000 tonnes per annum.
1968
- Two more extrusion presses and a few additional facilities in rolling mill were erected by
the end of the year to get higher production.
8
- 1,00,000 9.3% Pref. shares issued at par in 1968. 3,61,383 Equity shares out of 1967 issue
allotted in 1968. Arrears of Rs 4,000.
1972
- 20,07,973 Bonus Equity shares issued in the proportion 1:4. Arrears of Rs 4,000.
1976
- By the middle of the year the total installed capacity of the metal rose to 95,000 tonnes per
annum.
1977
- The Company revalued its plant and machinery as on 1st January, and the surplus of Rs
61,71,60,821 arising out of it was transferred to capital reserves.
1981
- As on 1st January, the Company further revalued the major items of land, buildings and
plant and machinery. A surplus of Rs 83,97,23,344 arising out of this was transferred to
capital reserve.
1982
- 33,46,622 Bonus Equity shares issued in proportion 1:3 in June.
1984
- The Company issued secured non-convertible debentures for a sum of Rs 17.50 crores for
augmenting the resources for long-term working capitalrequirements.
1985
9
- 26.69% of the Company's equity capital was held by Kaiser Aluminium & Chemical
Corporation, U.S.A., along with their nominees (Kaisers) aggregating to 35,73,332 equity
shares of Rs 10 each as on 31st December.
1986
- The highlight of the alumina plant expansion and modernisation was the installation of a gas
suspension calciner which was reported to be the first of its kind in the world. The design and
technology was provided by F. L. Smidth & Co. of Denmark.
- An agreement was finalised with M & F of Switzerland for installing the double digestion
system to further reduce the steam consumption.
- With regard to the reduction plant, the Company received a licence to enhance its capacity
from 1,20,000 tonnes to 1,50,000 tonnes of aluminium per annum.
- The Company was also engaged in expansion of capacity from 1,20,000 tonnes to 1,50,000
tonnes of aluminium per annum.
- The Company was also engaged in modernising its smelter with a view of effect substantial
savings in energy consumption. With regard to the fabrication facilities, the Company had in
hand a licence to expand the capacity from 37,000 tonnes to 55,700 tonnes per annum.
- The Company holds the entire issued capital of 35,006 equity shares of Rs 10 each of its
subsidiary, Minerals and Minerals Ltd., Calcutta. During the year the two companies named
Siddhpeeth Commercial Pvt. Ltd., and Dhakshinanchal Commercial Pvt. Ltd., became
subsidiaries of the Company. Marigold Holdings & Trading Ltd., and Dhakshinanchal
Finance Ltd., were also subsidiaries of the Company.
- The Company issued 40,00,000-15% non-convertible debentures of Rs 100 each for Rs 40

crores as rights to resident equity and preference shareholders and debenture holders. The
proceeds were to be utilised for financing the Company's modernisation scheme.
10
- As a matter of policy, Kaiser Group decided to divest its holdings in various corporations
world-wide where they did not hold the majority interest. As part of this disinvestment
programme, they also decided to disinvest their holdings in the Company.
1987
- The scheme to install double digestion system in the alumina plant was under
implementation. As a part of its energy conservation programme, the Company
commissioned a microprocessor based controls on 20 pots on an experimental basis to control
pot voltage, alumina feeding, etc.
- During the year, an application was submitted for permission to increase the smelting
capacity of Renukoot by a further 1 lakh tonnes per annum along with matching alumina
production and thermal power generating capacity.
- The Company entered into an agreement with the Pradeshiya Industrial & Investment
Corporation of U.P. (PICUP) on 2nd January for setting up an aluminium foil manufacturing
unit in the Assisted Sector at Jagdishpur in Sultanpur district of U.P. The capacity of this foil
plant was envisaged at 5,000 tonnes per annum and the estimated cost of the project was Rs
50 crores. This project was cleared under the MRTP Act in April 1989.
1988
- During May-June, Kaiser Group disinvested all its equity shareholders in the Company.
11
- Conform extrusion machine was installed and commissioned.
- (15 months), the Company issued 14% non-convertible debentures of Rs 100 each for Rs 45
crores on a rights basis to the existing resident equity shareholders and preference
shareholders. The funds thus raised were utilised for the Company's modernisation schemes.
- The holdings of Kaisers were offered for sale as follows: (i) 32,71,050 equity shares of Rs
10 each at premium of Rs 40 per share to the shareholders of the Company as rights in
proportion 1:3 (fractions to be ignored) and (ii) 3,02,282 equity shares of Rs 10 each at a
premium of Rs 40 per share to the employees of the Company on an equitable basis.
- 44,62,622 Bonus Equity Shares issued in proportion 1:3. Rate of interest on preference
shares increased to 15%.
1989
- The sixty pot line was commissioned, with the addition of 70 pot cells, thereby increasing
the installed aluminium production capacity to 1.35 lakh tonnes per annum. Installation of a
new cold rolling was taken up to enhance the capacity of rolled products by 40,000 tonnes
per annum.
- The rate of Central Excise Duty on aluminium was also increased by the Finance Act.
- The name of the Company was changed from Hindustan Aluminium Corporation Ltd., to
Hindalco Industries Ltd.
1990
- During January-February, the Company issued 53,54,595-12.5% secured redeemable partly

convertible debentures of Rs 250 each on Rights basis in the proportion 3 debentures: 10
equity shares held. Additional 8,03,189 debentures were allotted to retain oversubscription.
12
- Another 2,81,820 debentures were issued to the employees (including Indian working
directors)/workers) of the Company on an equitable basis (only 2,23,450 debentures were
taken up). The unsubscribed portion of 58,370 debentures was allowed to lapse.
- As per the terms of the debenture issue, a portion of Rs 110 (Part-A) of the face value of
each debenture was converted automatically into one fully paid-up equity shares of Rs 10
each at a premium of Rs 100 per share on the expiry of six months from the date of allotment.
- The balance of Rs 140 (Part-B) of the face value of each debenture would be redeemed at
par in two equal instalments of Rs. 70 each at the end of the 7th and 8th year from the date of
allotment of debentures.
- 63,81,234 No of Equity Shares allotted in part conversion of 12.5% debentures as on

1.10.1990 (prem. Rs. 100). 145,37,930 bonus shares issued in prop. 3:5 in October.
1991
- The Company issued 40,00,000-17.5% redeemable non-convertible debentures of Rs 100

each to financial and other institutions on private placement basis.
1992
- Renusagar Power Co. Ltd., a wholly owned subsidiary of the Company, was merged with
the Company with effect from the close of business on 31st March. The Company was
engaged in obtaining certification for ISO 9000 and for introduction of TQM.
- The Company again revalued its assets as on 1st April, and the net surplus of Rs 90623.37
lakhs arising out of this was credited to revaluation reserve.
- The erstwhile Renusagar Power Co. Ltd. issued 6,50,000-18% non-convertible debentures
of Rs 100 each to financial institutions on private placement basis to augment the long-term
resources for working capital. Out of this, 3,00,000 debentures are redeemable at 5%
premium in equal annual instalments on 23rd June, 1998, 23rd June, 1999 and 23rd June,
2000. The remaining 3,50,000 debentures are redeemable on 23rd June, 1999.
13
1993
- The Company was in the process of implementing the expansion project to raise the smelter
capacity by 40,000 TPA to 2,10,000 TPA.
- With a view to meet the demand of over seas markets, the company proposed to instal own
Ingot Casting machine. Also, alumina production capacity was enhanced to 3,50,000 TPA
reducing thereby the company's dependence on external sources.
- It was also proposed to undertake a further expansion of alumina production capacity to

4,50,000 TPA with the technology from Remolds International Inc. USA and Reytheon
Engineering & Construction, USA.
- The Company undertook to instal 9 high pressure boiler along with back pressure turbines
for generation of power.
- During the year, the company proposed to install two power generating units lamp a total
capacity of about 150 MW at Renusagar power plant. In addition, upgradation of existing
extrusion facilities, the existing hot and cold mills.
- It was also proposed to install a vertical ingot casting facility and vertical billet casting
facility using air ship technology required from Wagstaff Engineering Inc. USA.
- The Company participated in the equity capital of Birla International Ltd., incorporated in
the Isle of MAU. This was to promote exparte in India. Indo Gulf Fertilizers & Chemicals
Corporation Ltd., Bihar Caustic & Chemicals Ltd., Tanfac Industries, Mangalore Refinery &
Petrochemicals Ltd., & Birla Global Finance, Ltd. are all joint venture companies.
- Birla Capital International AMC Ltd., is a joint venture asset management company was
promoted by Grasim Industries Ltd., Hindalco Industries Ltd., Indian Rayon & Industries
Ltd. and Birla Global Finance Ltd. with the capital group International Inc., a major US based
investment management organisation.
14
- The joint venture manages mutual fund schemes for Birla Mutual Fund. Another joint
venture, Rajashree Polyfil Ltd. was setting up an integrated plant with a capacity of 66,000
TPA of polycondensation and 37,900 TPA of partially oriented polyester filament yarns
project.
- The Company issued 25,00,000-17% secured non-convertible redeemable debentures of Rs

100 each on private placement basis. Theser are to be redeemed in three equal instalements
on 11th May of 1999, 2000 and 2001 at a premium of Rs 5 per debentures.
- On 22nd July, the Company issued 44,73,000 GDRs of U.S. $16.10 per GDR equivalent to
Rs 505 per unit (conversion rate of U.S. $1 = Rs. 31.37). Each GDR comprises one equity
share of the nominal value of Rs 10 together with one-half of a warrant which can be
converted into one equity share on exercise of two half warrant at the price of U.S. $16.10
subject to adjustment) during the period from 3rd November, 1993 to 2nd November, 1995
(both days inclusive).
- These GDRs were offered to non-U.S. persons in offshore transactions in reliance on

Regulations under the Securities Act of 1933, a amended, in the United States to Qualified
Institutional Buyers (QIBs) in reliance on Rule 144A under the Securities Act. There was a
lock-in period of 30 days for the GDRs.
- 46,03,650 equity share out of 67,09,500 shares were allotted. The net proceeds of this issue,
estimated to be about U.S. $69,331, 500 (before expenses) were to be utilised to part finance
the Company's capital expansion programme.
1994
- The Company proposed to further expand the smelting capacity to 2,42,000 tonnes p.a. with
an upgradation of all attendant plants.
- It was also proposed to increase alumina capacity to 4,50,000 TPA to match the smelting
capacity. Technology was being secured from Reynolds international Inc. USA and United
Engineers International Inc. USA. A significant feature of the expansion is the installation of
15
co-generation system with a high pressure boiler and back pressure turbines for power
generation.
- During the year, the Company undertook to increase the power generation capacity at
Renusagar power plant from 350 MW to 500 MW.
- With the strategy of undertaking down stream activity with the purpose of acheiving higher
realisation, the company undertook to instal an aluminium foil plant with an initial capacity
of 5000 TPA.
- During July, the Company issued its second GDR issue of 41,66,666 receipts at the rate of
24 $ per GDR. Each GDR was converted into one equity share and accordingly 41,66,666
equity shares were to be allotted.
1995
- Installed smelting capacity was increased to 2,10,000 MTPA with the completion of 7th
Potline. The hot and cold rolling mills were being modernised. On completion rolled product
capacity would be increased to 80,000 MTPA.
- The company of its first international US $36 million. The warrant holders have the option
to exercise these warrants by 2nd November after April, 32.4% of the warrants exercised till
31st March 1995, 4,67,900 equity shares allotted on excuse of warrants.
16
- 16,37,950 No of Equity shares allotted on conversion of GDRs. 6,000 No. of Equity shares
forfeited.
1996
- One of the power generating turbine of 75 MW was commissioned during the year, taking
the total capacity to 425 MW.
- It was proposed to acquire additional bauxite mines in M.P. - The upgradation of existing
extrusion facilities with technology from Reynolds (Europe) Ltd. was undertaken.
- With a view to improving quality of feed stock for the upgraded rolling and extrusion
facilities, the company undertook to instal vertical ingot casting facility and vertical billet
casting facility. Both the facilities were to use the Air Slip Technology of Wagstaff
Engineering Inc., U.S.A.
- Following a comprehensive technological upgradation of the Company's hot and cold

rolling mills, the two mills were commissioned in March
1997.
- Also, the Company's installed capacity of rolled products was increased to 80,000 tpa. In
addition, the vertical ingot casting facility, a scalpter, soaking pits and slitting line were
commissioned.
- The Company received the special export award conferred by the Chemical & Allied
Products Export Promotion Council of India for its outstanding export performance.
- 24,827,990 bonus shares issued in prop. 1:2.
1997
- Extrusion Press No. 3 was completed by increasing the overall extrusion capacity to 13700
MTPA. The Foil plant at Silvassa was commissioned in February 1998. - With a view to
17
capitalising its inherent strength, the Company was exploring the feasibility of setting up an
integrated Aluminium complex in Orissa.
- A MOU was signed with Orissa Mining Corporation for transfer of two bauxite deposits
with adequate reserves. The project was to be named `Aditya Aluminium'.
- During the year the Company has signed a technical collaboration agreement with
Stahlschmidt & Maiworm Gmbh of Germany for setting up an Aluminium Alloy Wheel Plant
adjacent to the Foil Plant at Silvassa. This project will promote a new application in the
domestic market besides presenting the export market. - Hindalco Industries, a flagship
company of Aditya Birla group, on March 29 signed a MoU with the Orissa Mining
Corporation (OMC) for setting up of a mega integrated aluminium complex in the state, at an
estimated cost of Rs.10,000 crore.
- The company also plans to set up a captive power plant of 600 mw close to the coal deposit
at Ib Valley. The state-owned OMC will lease out its bauxite deposits at Kodingamali-
Pottangi to Hindalco for mining.
- The mega project includes setting up an alumina refinery of one million tonne per year
capacity near the Kodingamali-Pottangi bauxite deposits in the Koraput district in Orissa.
1998
- Hindalco Industries, an Aditya Birla group company, commissioned its 5,000 tpa
aluminium foil unit at Silvassa.
- Hindalco commissioned the potline, where aluminium is smelted by an electrolytic process,

on February 18. State-controlled National Aluminium Company (NALCO), currently India's
biggest aluminium producer, has a smelter capacity of 2,30,000 tonnes per annum.
- Hindalco on 11th Sept announced that it would acquire a 51 per cent stake in B M Khaitan
owned India Foils Ltd (IFL).
1999
18
- Hindalco Industries Ltd is slated to commission its aluminium alloy wheel plant at Silvaasa
in Gujarat in September, Mr. Kumar Mangalam Birla, Chairman of the company, said.
- Hindalco Industries, the flagship company of the Aditya Birla group, is the country's largest
integrated aluminium company.
- Aditya Birla group company Hindalco Industries Ltd (Hindalco) has acquired 18,38,900
shares of public sector major National Aluminium Company Ltd (Nalco) through one of its
investment subsidiaries.
- The Rs 1,767-crore aluminium major, Hindalco Industries Ltd, is setting up a one lakh
tonne per annum brownfield (expansion at current site) aluminium smelting project at
Renukoot at an estimated cost of Rs 2,500 crore.
2000
- The board of directors has approved entering into an agreement with Alcan Aluminum Ltd
of Canada, for purchase of 3,88,44,324 shares constituting 54.6 per cent of the paid-up capital
of Indian Aluminum Co. Ltd. Rs. 190 per share.
- Indian Aluminium Co. Ltd. became a subsidiary of the Aditya Birla flagship company
Hindalco Industries Ltd., which has taken up a 74.6 per cent equity stake in Indal.
- Crisil has reaffirmed the highest safety rating for the Rs. 100-crore non-convertible
debenture programme of Hindalco Industries and very strong safety for its Rs. 50 crores
commercial paper programme.
- The Company acquired a majority ownership of 54.62% in the company from Alcan
Aluminium Limited, Canada. It acquired an additional 20% stake pursuant to the open offer
under the SEBI Regulations, 1997.
19
- The Company of the Aditya Birla Group has made a strategic move to implant the
legendary `prata' and allied management information services systems at all operational
locations of Indian Aluminium Company Ltd.
- Hindalco Industries proposes to buy 10 per cent stake in Bihar Caustic & Chemicals from
Grasim Industries,
- Hindalco has recently acquired from Alcan Aluminium (Alcan) around 38.84 million shares
of Indian Aluminium Company, (Indal) aggregating to 74.6% holding. Indal's strength in
Alumina and downstream products would ideally dovetail with Hindalco's strong presence in
metal. It is also among the world's lowest cost aluminium producers.
2002
-Hindalco has embarked on a brownfield expansion in Renukoot. It will enhance the smelter
capacity by 1,00,000 TPA and the alumina refining capacity by 210,000 TPA. A matching
increase in the captive power generating capacity is also on the anvil. So consequent to its
completion, aluminium smelting capacity will increase to 3,42,000 MTPA. Alumina refining
capacity will be augmented to reach 6,60,000 MTPA and power generation capacity will
stand raised to 769 MW. The project is being implemented at a cost of Rs. 18 billion and is
slated for completion in a phased manner, largely by end 2002-03.
-The company recently entered the Rs 250-crore branded foils market under the "Hindalco
Wrap" brand name. With this launch, the company wants to address a category in the FMCG
sector. Launched in 54 cities across the country, Hindalco Wrap is currently available at most
retail outlets in a unique dispenser pack at Rs 42 for a nine metre roll. The company also
plans to enter the aluminium-based kitchen utility products market in a big way.
-Hindalco, Indal marketing division integrated
-Launches its new product 'Aura' aluminium wheels
-Board of Directors approves buyback of shares
20
-Mr Rajendra K. Kasliwal, Chief Financial Officer, named the winner of the CFO Asia
Pricewaterhouse Coopers Achievements in Best Practices Awards for 2002 for managing
external stakeholders
-Receives the FICCI-Socio Economic Development Foundation's (FICCI-SEDF) Social

Responsiveness Award for the year 2001, for its projects on rural development and promoting
economic self-reliance in over 334 villages
-Birlas increase stake in the company to 22.8% from 21.4%
-Acquires 4% stake in National Aluminium Company Ltd. (Nalco)
-Makes open offer to acquire 25.5% stake in Indal at Rs 120 per share
-Indo Gulf's investments in group firms transferred to Hindalco Industries
-Hindalco Industries Board approves sale of equity shares in Mangalore Refineries to ONGC
-Hindalco discontinues scheme of buyback
-Sebi stalls Hindalco's Indal open offer
-Temporarily shuts down Gurdari mines
2003
-Commissions 11th potline
-Acquires Nifty Copper Mine of Australia for Rs 225 crore
-Copper Business of Indo Gulf Corporation Ltd merged with the company with effect from
Feb 12, 2003, swap ratio fixed at 1:12 (1 share of Hindalco for 12 shares of Indo Gulf
Fertilisers held)
21
-Gives boiler contract of Rs 87 crore to Alstom Projects India Ltd.
-Aditya Birla Group divests its Equity Stake in Mangalore Refinery & Petrochemicals Ltd.
(MRPL) to Oil & Natural Gas Corporation Ltd. (ONGC)
-Hindalco Industries Ltd executes scheme of amalgamation involving Hindalco Industries

Ltd., Indo Gulf Corporation Ltd. & Indo Gulf Fertilisers Ltd.
-Acquires 2.98 pc stake in Indian Rayon & Industries, enhances holding to 12.80% percent
-Picks up 30-pc stake in Bihar Caustic & Chemicals Ltd., increases the stake to 50%
-Hindalco increases its holding in Grasim to 3% and in Indian Rayon to 12.79%
-Shareholders approve to delist equity shares from three stock exchanges (Madras, Calcutta
& Delhi Stock Exchanges)
-Divests its entire stake in Indo Gulf Fertilisers Ltd. (IGFL)
-Appointed Mr. D Bhattacharya as Managing Director
-Acquired Mount Gordon copper mine in Australia
2004
-Hindalco Industries Ltd. has informed that the Delhi Stock Exchange Association Limited,
New Delhi, has informed the Company that it has delisted the Equity shares of the Company
from its Stock Exchange w.e.f. December 29, 2003 pursuant to the application made by the
Company to it for voluntary delisting of its Equity shares.
-Hindalco Industries Ltd. has informed that the Madras Stock Exchange Limited has
informed the Company that it has delisted the Equity shares of the Company from its Stock
Exchange wef January 07, 2004 pursuant to the application made by the Company to it for
voluntary delisting of its Equity shares.
22
-Hindalco Industries Ltd has informed that Shri Sanjeeb Chatterjee has been appointed as
Company Secretary of the Company w.e.f. February 1, 2004 with cessation of Shri Anil J
Jhala as Company Secretary.
-Hindalco Industries expansion for enhancing the capacity of Copper Smelter
-Birla Copper acquired two mines in Australia.
-Hindalco Industries signs an agreement with ST Telemedia & TM International to acquire

stake in Idea Cellular
-Hindalco inks MoU with Orissa Govt to set up aluminium complex
-Hindalco signs agreement with UAE based Foodco
2005 -Company has splits its Face value of Shares from Rs 10 to Re 1
-Hindalco Industries Ltd Issues Rights in the Ratio of 1:4
2006
- Hindalco Industries Ltd has announced that on October 30, 2006 the Company has entered
into a Joint Venture partnership with ALMEX USA, Inc., for the manufacture of High
Strength Aluminium Alloys for applications in the aerospace, sporting goods and surface
transport industries.
- Hindalco awarded the Greentech Safety Silver Award for its outstanding safety performance
during the year.
2007
- The acquisition of Novelis Inc. a world leader in aluminium rolling and can recycling,
marked a significant milestone in the history of the aluminium industry in India. With
23
Novelis under its fold, Hindalco ranks among the global top five aluminium majors, as an
integrated producer with low-cost alumina and aluminium facilities combined with high-end
rolling capabilities and a global footprint in 13 countries.
- Hindalco awarded the CII - Sorabji Green Business Centre "National Award for Excellence
in Water Management 2007"
- Novelis becomes a Hindalco subsidiary with the completion of the acquisition process. The
transaction makes Hindalco the world's largest aluminum rolling company and one of the
biggest producers of primary aluminum in Asia, as well as being India's leading copper
producer.
2008
-The company has issued rights in the ratio of 3:7at a premium of Rs.95/- Per Share.
2009
- Hindalco Industries, Aditya Birla group flagship firm, has decided to cut its overseas
operations and is restructuring its capital expenditure in India in an effort to stabilise
operations. As part of this overall plan, Novelis, which Hindalco acquired for $6 billion in
2007, is closing its sheet mill at Rogerstone in the UK, involving 440 job losses.
2010
- Hindalco ranked ninth across industries on Forbes Asia's Fab 50 companies list of Asia's 50
most valued companies.
- Hindalco and Birla White declared winners in the Golden Peacock Awards for Corporate
Social Responsibility 2010 by an eminent international jury, headed by Justice P.M.
Bhagwati, the erstwhile Chief Justice of India.
- Hindalco wins Amity International Business School’s, ‘Amity Corporate Excellence Award
for Corporate Social Responsibility.’
24
- Hindalco has entered into an agreement with Coal India Ltd (CIL) for securing mine-
specific coal supplies to the Renukoot facility of Hindalco at 10 % premium over the agreed
price.
- Hindalco Industries Ltd has announced that its subsidiary - Utkal Alumina International Ltd.
(UAIL) has tied up a debt of Rs. 4,906 crore from a group of banks.
- Hindalco Industries Ltd, Utkal Alumina International Ltd. (UAIL), 100% subsidiary of
Hindalco, is setting up a 1.5 mtpa alumina refinery in Rayagada district of Orissa. The project
will feed the alumina requirements of the Mahan and the Aditya smelters presently under
construction.
- Hindalco - Novelis Inc. Announces Pricing of $2.5 Billion Senior Unsecured Notes. 2011
- The Company is setting up a Greenfield Aluminium Smelter Project in Madhya Pradesh

(Mahan Project) with a capacity of 359,000 TPA of aluminium supported by 900 MW
captive power plant at a cost (including financing cost) of Rs. 10,500 Crs.
- An Imminent name in aluminium production in India, Hindalco Industries has recently got
Government approval for cutting down the forest of Orrisa, Rayagada district. The proposed
reason for acquiring this green clearance is an alumina refinery project to be set up in
Rayagada that would involve an investment up to Rs. 6,000 crore.
2012 - Hindalco Industries, an integral part of the Aditya Birla Group announced it is
expecting to commence its 1.5 million tonnes per annum (mtpa) alumina refinery by January
2013, located in Orissa. - Moving against the trend of avoiding any capex plan by companies
amid global economic slowdown, Hindalco Industries has achieved financial closure for Rs
9,896 crore debt for its greenfield smelter project at Lapanga in Odisha in one of the largest
syndication in recent times.
2013 -Hindalco Industries Ltd. - Acquisition of Alumina Refinery and Bauxite Mines from
Novelis Do.
25
2015- Hindalco Industries announced that credit rating agency CRISIL has downgraded
Long-Term rating of the companys bank facilities and Non Convertible Debentures from
AA/Negative to AA-/Stable.Hindalcos Mahan Aluminium and Aditya Aluminium smelters
and Utkal refinery became operational in 2015. The company acquired the Gare Palma Coal
mines in Chhattisgarh and the Kathautia and Dumri Coal mines in Jharkhand through auction
in 2015.
2016-Novelis Inc. announced the completion of the previously announced offering of $1.5
billion aggregate principal amount of 5.875% senior notes due 2026 by Novelis Corporation,
an indirect wholly-owned subsidiary of Novelis. Hindalcos greenfield projects - Mahan
Aluminium, Aditya Aluminium and Utkal Alumina ramped up to full capacity in 2016.
2017-Hindalco successfully raised USD 500 million through Qualified Institutional

Placement (QIP) in March 2017. There was a strong participation from FIIs and long- only
investors, generating demand in excess of USD 1.5 billion (3x subscription). The QIP was
priced at zero discount to the previous days closing share price.Novelis entered into a joint
venture agreement in May 2017 with Kobe Steel, Japan to sell 50 per cent of its ownership
interest in its Ulsan, South Korea facility, for USD 315 million. Located in the industrial hub
of Korea, Novelis Ulsan facility focuses on the production of rolled aluminum sheet for a
variety of markets in Asia. In FY 2017, Hindalco divested Aditya Birla Minerals Limited,
Australia for Rs 367 crore. With the new coal linkage in FY 2017, coal security improved to
over 60 per cent of the annual requirement of Hindalcos domestic aluminium business. In FY
2017, Gare Palma IV/4 Coal Mines and Gare Palma IV/5 Coal Mines reached their peak
capacity. The operations at Kathautia Mines commenced in February 2017.
26
Tata Steel Processing and Distribution Limited, formerly Tata Iron and Steel Company
Limited (TISCO), is an Indian multinational steel-making company headquartered in
Kolkata, West Bengal, India, and a subsidiary of the Tata Group.
It is one of the top steel producing companies globally with annual crude steel deliveries of
27.5 million tonnes (in FY17), and the second largest steel company in India (measured by
domestic production) with an annual capacity of 13 million tonnes after SAIL.
Tata Steel operates in 26 countries with key operations in India, Netherlands and United
Kingdom, and employs around 80,500 people. Its largest plant (10 MTPA capacity) is located
in Jamshedpur, Jharkhand. In 2007, Tata Steel acquired the UK-based steel maker Corus.
It was ranked 486th in the 2014 Fortune Global 500 ranking of the world's biggest
corporations. It was the seventh most valuable Indian brand of 2013 as per Brand Finance.
Vision
We aspire to be the global steel industry benchmark for Value Creation and Corporate
Citizenship.
Mission
Tata Steel strives to strengthen India’s industrial base through effective utilization of staff
and materials. The means envisaged to achieve this are cutting edge technology and high
productivity, consistent with modern management practices.
27
Values
We will be passionate about achieving the highest standards of quality, always promoting
meritocracy.
Unity
We will invest in our people and partners, enable continuous learning, and build caring and
collaborative relationships based on trust and mutual respect.
Responsibility
28
We will integrate environmental and social principles in our businesses, ensuring that what
comes from the people goes back to the people many times over.
Pioneering
We will be bold and agile, courageously taking on challenges, using deep customer insight to
develop innovative solutions.44
29
Year Event
1910
Tata Steel obtains its first colliery.
1912
a) First ingot rolls out.
b) Bar mills commence operations.
c) Introduction of 8 hour working day.
1938
Introduction of electric process for making steel which was employed
for production of high grade iron and steel casting.
1972-1973
Coal fine washeries were set up for the first time in Jamadoba andWest Bokaro.
1980-1996
Modernisation programme of the Jamshedpur steel works was initiated in four phases during
this period.
2000
a) Cold rolling mill set up at Jamshedpur. The mill was completed in a record time of 26
months.
b) Creation of B2B portal called metaljunction.com in collaboration with SAIL and Kalyani
Steel.
2001
World Steel Dynamics ranks Tata Steel as India’s only World-classsteel maker
2003
a) The Company launches its first branded cold rolled steel product called Tata Steelium
d) The Company celebrates 75 years of industrial harmony.
30
2004
a) The Company’s biggest blast furnace completes production of 14 million tones of hot
metal which is the highest production achieved by a blast furnace in India in its first
campaign.
b) The Company files a corporate sustainability report where the Company was rated as
India’s Top Reporter by United Nations Environment Program and Standard and Poor’s.
2005
a) The Company acquires NatSteel Asia in Singapore.
b) The Company launches Steel Junction which is India’s first organized retail store for steel
products.
c) The Company is ranked as the World’s Best Steel Maker by World Steel Dynamics.
2006
a) The Company’s steel works at Jamshedpur crosses 5 million tonnemark in crude steel
production.
b) The Company is ranked again as the World’s Best Steel Maker by World Steel
Dynamics.
c) The Company acquires Corus, which makes the Company the sixth
largest steel maker in terms of actual crude steel production.
d) The Company was conferred the Prime Minister of India’s Trophy for the Best
Integrated Steel Plant
2008
31
a) 1.8 mtpa capacity expansion at Jamshedpur becomes operational, bringing total crude
steel production capacity to 6.8 mtpa.
b) Prime Minister Dr. Manmohan Singh unveiled the centenary postage stamp to
commemorate the Company’s centenary year.
c) The Company was conferred the Best Establishment Award by the President of India.
d) The Company was awarded the Demining Application Prize.
e) The Company was awarded the TERI Corporate Award for its HIV/ AIDS initiative. .
2009
a) The Company issued Global Depository Receipts worth US$ 500 million.
b) The Company was awarded the CSR Excellence Award 2010 by the Associated
Chambers of Commerce and Industry.
c) The Company was awarded the FE-EVI Green Business Leadership Award in the iron
and steel category.
d) The Company was awarded Asia’s Best Employer Brand Awards, 2010for talent
management, best human resource strategy in line with business, excellence in training, CEO
with human resource orientation and human resource leadership.
e) The Company was awarded the Rashtriya Khel Protsahan Puruskar award for outstanding
contribution in the field of sports in the category of ‘Financial Support for Sports
Excellence’.
f) Tata Ryerson and HMPCL merge with Tata Steel
Achievements
32
Some of the key achievements/awards received in Financial Year 2010 are as follows:
1. The Company was awarded the ‘Economic Times Company of the Year Award’.
2. The Company was conferred the Indian Most Admired Knowledge Enterprise award for
sustained excellence in field of knowledge management.
3. In 2010, one of the Company’s employee was awarded the Prime Minister’s Shram
awards for years 2005 to 2007.
4. Tubes Division of the Company won the 16th JRD QV Award.
5. Corporate Social Responsibility Excellence Award to the Company by Associated

Chambers of Commerce & Industry of India.
2010
- Tata Steel, India’s leading steel makers has teamed up with State Bank of India, Orissa
government and CAP, for the manufacturing of the skilled labour.
- Corus and SSI sign MoU for the potential sale of Teesside Cast Products
- Tata Steel - Joint Venture for production and sales of Automotive Cold Rolled Flat
Products
- Tata Steel - Signing of Memorandum of Understanding between Tata Steel & NMDC
- Tata Steel executes agreements for the refinancing of its debt in Europe
- Tata Steel increases stake in New Millennium Capital Corporation
- Tata Steel has added one more milestone to its locker, as the Tata Steel has been ranked
among the world's top ten of the Most Admired Company rated by Fortune Magazine and the
Hay Group during the year.
33
- Tata Steel formed a joint venture in the ratio of 51:49, withJapan's Nippon Steel for the
manufacturing and sales of automotive cold-rolled flat products at Jamshedpur unit
- Tata-Corus the steel making arm of the Tata Group has appointed Citibank as its advisor
for the sale of its Teesside Cast Product (TCP) mills in Redcar, UK.
- Tata-SAIL joint venture bags coal mines in Jharkhand
- Tata Steel won the Most Admired Knowledge Enterprise (MAKE) Winner for the year
2010 for sustained excellence in field of Knowledge Management.
2011
- Tata Steel - Joint Venture for Automotive Cold-Rolled Flat Products
- Tata Steel - Tata Steel signs definitive agreement with SSI for sale of TCP
- Tata Steel Ltd has informed that TCIL, a company listed on BSE and NSE has become a
subsidiary of the Company with effect from April 01, 2011, as a result of an increase in the
Company's shareholding in TCIL from 42.88% to 59.45%.
- Tata Steel conferred with ABCI Awards
- TSRDS Jharia receives Best NGO award
- Tata Steel bagged two prestigious awards at the MMMM Exhibition

2011
- Tata Steel won the 'The Businessworld Most Respected Company Award
2011
2012
34
- Tata Steel’s prominence on safety at all levels of its operationsreceived national ovation
with the Company bagging the prestigious National Safety Award
- Safety & Health Excellence Recognition 2012 awarded to Tata Steel by Worldsteel
Association
-Tata Steel conferred with the prestigious Asian MAKE Award for Transforming Enterprise
Knowledge into Stakeholder Value
-Tata Steel Conferred With the Prestigious 'AWARD FOR LEADERSHIP' in HR Excellence
at the CII National HR Conclave 2012
- Tata Steel finally gets land for the Haveri project as the government of Karnataka has
completed the land acquisition process for the integrated Tata Steel and Tata Metaliks project
at Haveri district.
- Tata Steel restructured to improve competitiveness of UK operations through market

cycles.
- Tata Steel secured major profiled steel plate order for Siemens wind towers.
- Tata Steel has expanded its aerospace operations in China byopening its second aerospace
service centre in the country.
2013
- Tata Steel was awarded the 'CII-ITC Sustainability Prize' in the 'Category A' for Large
Independent Company at the CII-ITC Sustainability Awards 2012.
35
- Tata Steel, a pioneer in steel manufacturing, launched a new version of its online portal-
Valueabled.com at the Jaipur LiteratureFestival, an online extending company sustained
campaign to inspire the youth to embrace a value driven society.
- Tata Steel Ltd. has voiced intentions to set up a GBP 22 million

pounds manufacturing unit for developing innovative green
technologies at Brinsworth site in Rotherham.
- Tata Steel forms alliance with Labrador Iron Mines Holdings Limited (LIM) to assist
operations in Labrador trough.
- Tata Steel - Amalgamation of Kalimati Investment Company Limited with the Company.
- Tata Steel gets approval for the amalgamation of TML & TMKPL with the company by the
Board of Directors.
- Tata Steel - Tata Metaliks Ltd and Tata Metaliks Kubota Pipes Ltdto Merge with Tata Steel
Ltd
- Tata Steel sets up new 6mn tonne steel plant for Odisha project.
- Tata steel has inked a 5-year contract with Safran Group, a wholly owned subsidiary of
American International Group, Inc.
36
- Tata Steel bags contract to serve Network Rail, Britain for five more years.
2014
- Tata Steel wins 2-year contract to supply rail tracks to French rail operator.
- Tata Steel inaugurates UK largest plate service centre n the West Midlands,.
- Tata Steel, ONGC named among world most admired companies by Fortune magazine in a
list topped by technology giant Apple,
- Tata Steel Ltd has informed that Steel & Tube Holdings of New Zealand has agreed to
acquire Tata Steel International (Australasia)executed a agreement to sell 100% stake in the
Dhamra Port Companywith Adani Ports & Special Economic Zone for a worth approx Rs
5500 crore.
- Tata Steel signs contracts to supply pipes to Subsea 7.
- Tata Steel bags Asian Corporate Social Responsibility (CSR)
Leadership Award for Community Development.
- Tata Steel - Tata Steel’s European business signs Memorandum of
Understanding regarding its Long Products Europe business
- The company has inked a Memorandum of Understanding (MoU) with
Switzerland-based Klesch Group to undertake detailed due diligence
and negotiations for the potential sale of its Long Products Europe
business and associated distribution activities.
2015
-Tata Steel has launched an innovative and stronger structural steel tube product in Europe
-Tata Steel Minerals Canada Limited acquires balance 49% participating interest in Howse
Deposit
-Tata Steel has set up a new company to attract global electronics and electrical component
makers from China and Southeast Asia
-Tata Steel, has commenced the production of coke at its Kalinganagar project in Odisha
-Tata Steel has got the Environment Ministry approval for more than doubling the capacity
of its Jamshedpur-based cold rolling mill at an investment of Rs 126 crore
-Tata Steel Ltd has approved the Scheme of amalgamation between Tata Steel Limited and
Tata Metaliks Limited and Tata Metaliks Dl Pipes Limited
37
-Tata Steel has entered into partnership with Abu Dhabi-based International Development
Company (IDC) to expand its market base for energy sector products in the Middle East
-Tata Steel received green nod for expansion as well as setting up of two units at its Joda
plant in Keonjhar district, Odisha
-Tata Steel UK Limited signs Letter of Intent regarding Long Products Europe business
2016
-Tata Steel gets green nod for Rs 1,877 cr expansion project
-Tata Steel calls of two subsidiaries merger
-Tata Steel receives contribution for investment project
-Tata Steel inaugurates day care facility for employees
-Tata Steel announces partnership for its Canadian Iron Ore Mines
-Tata Steel has won three awards for Excellence in Value Engineering at INVEST 32nd
National & 5th Asian Value Engineering Conference held in New Delhi.
-Tata Steel receives ‘The Best Companies to Work for Award’ by
Business Today
-Tata Steel bags the Most Ethical Company Award for the 4th time
-Tata Steel bestowed with the Golden Peacock Innovative Product/ Service Award
-Tata Steel conferred with the ‘Tata Affirmative Action Program’ Jury Award
-Tata Steel is India’s first steel manufacturing company to receive ‘Greenco Platinum’ rating
by CII Green Building Council
2017
-Tata Steel inaugurates Cold Rolling Mill Complex BARA Phase II.
-Tata Stee's Katamati Mine wins Best Green Award.
-Tata Steel Kalinganagar hot metal production crosses 2 MT mark.
-Tata Steel's First Greenfield Ferro-Chrome Plant in India at Gopalpur Starts Production.
-Tata Steel launches 2 apps. The first app concerns TSL Events and the second App is
ActionBound for treasure hunt.
-Tata Steel commissions its 1st 3 MW solar power plant at Noamundi.
-Tata Steel commissions mine air cooling system at Digwadih.
-Sukinda Chromite Mine (SCM) of Tata Steel in Jajpur district of
Odisha bagged four awards at the safety week organised by the Directorate General of Mines
Safety (DGMS).
38
-Tata Steel Joda Mine gets Golden Peacock Innovation Award
On 14 February 2018, West Bokaro division of Tata Steel commissioned the primary
crushing plant 3 (PCP 3). PCP 3 has been set-up with an objective of augmenting coal
beneficiation at the colliery. On 7 March 2018, Tata Steel announced that it has received a
formal communication from the Resolution Professional of Bhushan Steel Limited (BSL) that
it has been identified as the highest evaluated complaint resolution applicant to acquire
controlling stake of BSL under the Corporate Insolvency Resolution Process (CIRP) of the
Insolvency and Bankruptcy Code 2016 (IBC), as decided in the meeting of the Committee of
Creditors (CoC) of BSL on 6 March 2018.
39
BALANCE SHEET AND PROFIT AND LOSS OF HINDALCO

INDUSTRIES
P AND L Rs. In millions

Parameter MAR 19 MAR 18 YoY %Change
Gross Sales 1305420 1158200 12.71

Sales 1287230 1151510 11.79
Job Work/ Contract
Receipts
Processing Charges /
Service Income 10220 440 2222.73
Other Operational Income

7970 6240 27.72
Less: Excise Duty 6370

Net Sales 1305420 1151830 13.33
EXPENDITURE :
Increase/Decrease in Stock
3860 -19910 119.39
Raw Material Consumed 783020 708760 10.48

Opening Raw Materials 55300 44230 25.03
Purchases Raw Materials
783930 719780 8.91
Closing Raw Materials 58560 55300 5.9

Other Direct Purchases /
Brought in cost 2350 50 4600
Other raw material cost

0 0 0
Power & Fuel Cost 96180 86140 11.66

Electricity & Power 96180 86140 11.66
Oil, Fuel & Natural gas 0 0 0
Coals etc 0 0 0
Other power & fuel 0 0 0
Employee Cost 90430 86450 4.6
Salaries, Wages & Bonus
63710 61540 3.53
Contributions to EPF &

Pension Funds 6120 6660 -8.11
Workmen and Staff

Welfare Expenses 13070 11920 9.65
Other Employees Cost 7540 6330 19.12

Other Manufacturing
Expenses 54850 49640 10.5
Repairs and Maintenance

21480 19100 12.46
40
Packing Material
Consumed 20 10 100
Other Mfg Exp 33350 30530 9.24

General and Administration
Expenses 6570 6710 -2.09
Rent , Rates & Taxes 4370 4300 1.63

Insurance 1570 1680 -6.55
Other Administration 630 730 -13.7
Selling and Distribution
Expenses 44870 34550 29.87
Freight and Forwarding 44870 34550 29.87

Handling and Clearing
Charges 0 0 0
Other Selling Expenses 0 0 0

Miscellaneous Expenses 74010 65600 12.82
Bad debts /advances
written off 30 60 -50
Provision for doubtful

debts 180 280 -35.71
Losson disposal of fixed

assets(net) 670 660 1.52
Losson foreign exchange

fluctuations 550
Losson sale of non-trade

current investments 1950 2130 -8.45
Other Miscellaneous
Expenses 70640 62480 13.06
Less: Expenses Capitalised

0 0 0
Total Expenditure 1153790 1017940 13.35

Operating Profit (Excl OI) 151640 133890 13.26
Other Income 14630 16360 -10.57
Interest Received 5430 4420 22.85
Dividend Received 450 410 9.76
Profit on sale of Fixed
Assets 5180 6280 -17.52
Provision Written Back 400 550 -27.27

Foreign Exchange Gains
200
Others 3170 4510 -29.71

Operating Profit 166270 150250 10.66
Interest 37780 39110 -3.4
Bank Charges etc 1820 1810 0.55
Other Interest 35960 37300 -3.59
41
PBDT 128490 111140 15.61

Depreciation 47660 46060 3.47
Profit Before Taxation &
Exceptional Items 80830 65080 24.2
Exceptional Income /
Expenses 17740
Profit Before Tax 80830 82820 -2.4

Provision for Tax 25880 20740 24.78
Current Income Tax 19100 16640 14.78
Deferred Tax 6780 4880 38.93
Other taxes 13550 8980 50.89
Profit After Tax 54950 62080 -11.49
Minority Interest 10 0 0
Share of Associate 0 -1250 100
Consolidated Net Profit 54960 60830 -9.65
Profit Balance B/F 110950 45240 145.25
Appropriations 165910 106070 56.42
Other Appropriation 5850 -4870 220.12
Equity Dividend % 120 120 0
Earnings Per Share 25 27 -7.41
Adjusted EPS 25 27 -7.41
BALANCE SHEET RS. In millions

Particulars MAR 19 MAR 18 YoY %Change
EQUITY AND LIABILITIES NA NA NA
Share Capital 2223.9 2228.9 -0.22
Equity - Authorised 2500 2500 0
Equity - Issued 2246.1 2245.5 0.03

Equity Paid Up 2223.7 2228.7 -0.22
Equity Shares
0.2 0.2 0
Forfeited
Adjustments to Equity 0 0 0
Preference Capital
0 0 0
Paid Up
Face Value 1 1 0
Share Warrants &
-1017 159.9 -736.02
Outstandings
Total Reserves 573810.4 546128.9 5.07
Securities Premium 82062.8 81971.7 0.11
42
Capital Reserves 1473.6 1473.6 0
Profit & Loss Account

160059.8 110948.6 44.26
Balance
General Reserves 213696.5 213696.5 0
Other Reserves 116517.7 138038.5 -15.59
Reserve excluding
573810.4 546128.9 5.07
Revaluation Reserve
Revaluation reserve 0 0 0
Shareholder's Funds 575017.3 548517.7 4.83
Minority Interest 94.8 86.4 9.72
Long-Term Borrowings 0 0 0
Secured Loans 298668.2 302481 -1.26
Non Convertible
59908.3 59890 0.03
Debentures
Converible
0 0 0
Debentures & Bonds
Packing Credit - Bank 0 0 0
Inter Corporate &

0 0 0
Security Deposit
Term Loans - Banks 239653.2 249157.1 -3.81
Term Loans -
0 0 0
Institutions
Other Secured -893.3 -6566.1 86.4
Unsecured Loans 181647.9 176261.6 3.06
Fixed Deposits -
0 0 0
Public
Loans and advances

0 0 0
from subsidiaries
Inter Corporate
0 0 0
Deposits (Unsecured)
43
Foreign Currency
0 0 0
Convertible Notes
Long Term Loan in

63.2 6215.4 -98.98
Foreign Currency
Loans - Banks 0 0 0
Loans - Govt. 0 0 0
Loans - Others 0 0 0
Other Unsecured
181584.7 170046.2 6.79
Loan
Deferred Tax Assets /

36505.3 30537.6 19.54
Liabilities
Deferred Tax Assets 83316 73518.4 13.33
Deferred Tax Liability 119821.3 104056 15.15
Other Long Term

14548.1 13596.3 7
Liabilities
Long Term Trade
15.5 240.4 -93.55
Payables
Long Term Provisions 74401.1 70810.5 5.07
Total Non-Current
605786.1 593927.4 2
Liabilities
Current Liabilities NA NA NA
Trade Payables 207228.5 204048 1.56
Sundry Creditors 207228.5 204048 1.56
Acceptances 0 0 0
Due to Subsidiaries-
0 0 0
Trade Payables
Other Current Liabilities 54995.6 58920.3 -6.66
Bank Overdraft /
0 0 0
Short term credit
Advances received
0 2634.2 -100
from customers
44
Interest Accrued But

8879.6 8468.3 4.86
Not Due
Share Application
0 3.1 -100
Money
Current maturity of
0 0 0
Debentures & Bonds
Current maturity -
284.6 585 -51.35
Others
Other Liabilities 45831.4 47229.7 -2.96
Short Term Borrowings 42257.3 33981.6 24.35
Secured ST Loans
1267.8 700.1 81.09
repayable on Demands
Working Capital
1226.6 645.1 90.14
Loans- Sec
Buyers Credits -
0 0 0
Unsec
Commercial
0 0 0
Borrowings- Unsec
Other Unsecured
39762.9 32636.4 21.84
Loans
Short Term Provisions 32907.9 30656.8 7.34
Proposed Equity
0 0 0
Dividend
Provision for
0 0 0
Corporate Dividend Tax
Provision for Tax 13127.1 11932.4 10.01
Provision for post

10308.7 8321.4 23.88
retirement benefits
Preference Dividend 0 0 0
Other Provisions 9472.1 10403 -8.95
Total Current Liabilities 337389.3 327606.7 2.99
45
Total Liabilities 1518287.5 1470138.2 3.28

ASSETS NA NA NA
Gross Block 1301074.3 1250598 4.04
Less: Accumulated
442821.1 399950.9 10.72
Depreciation
Less: Impairment of
-107.5 0 0
Assets
Net Block 858360.7 850647.1 0.91
Lease Adjustment A/c 0 0 0
Capital Work in
39746.3 19829.8 100.44
Progress
Non Current
51798.5 69015.5 -24.95
Investments
Long Term Investment 51798.5 69015.5 -24.95
Quoted 50046.2 67981.7 -26.38

Unquoted 1752.3 1033.8 69.5
Long Term Loans &
11822.1 18489.6 -36.06
Advances
Other Non Current
15400.1 11724.1 31.35
Assets
Total Non-Current
978352.5 970505.7 0.81
Assets
Current Assets Loans &
NA NA NA
Advances
Currents Investments 38553.1 39034.8 -1.23
Quoted 35603.6 32146.9 10.75

Unquoted 2949.5 6887.9 -57.18
Inventories 221937.9 216313.9 2.6
Raw Materials 58558.8 55299.4 5.89
Work-in Progress 107481.2 106202.2 1.2
Finished Goods 33036.7 33267.7 -0.69
Packing Materials 1 2 -50
Stores and Spare 17496.7 17021.3 2.79
Other Inventory 5363.5 4521.3 18.63

Sundry Debtors 114597.6 99598.1 15.06
Debtors more than
829.7 824.4 0.64
Six months
Debtors Others 114650.2 99639.9 15.06
46
Cash and Bank 97865.6 80577.6 21.46

Cash in hand 3.5 3.9 -10.26
Balances at Bank 97787.2 80410.1 21.61
Other cash and bank

74.9 163.6 -54.22
balances
Other Current Assets 39235.2 47384.3 -17.2
Interest accrued on
0 0 0
Investments
Interest accrued on
0 0 0
Debentures
Deposits with
335.8 455.6 -26.29
Government
Interest accrued and

439.9 408.7 7.63
or due on loans
Prepaid Expenses 4898 4371.9 12.03
Other current_assets 33561.5 42148.1 -20.37
Short Term Loans and

27745.6 16723.8 65.9
Advances
Advances recoverable
0 0 0
in cash or in kind
Advance income tax

14408.4 3312.1 335.02
and TDS
Amounts due from

0 0 0
directors
Due From
0 0 0
Subsidiaries
Inter corporate
0 0 0
deposits
Corporate Deposits 0 0 0
Other Loans &

13337.2 13411.7 -0.56
Advances
Total Current Assets 539935 499632.5 8.07
47
Net Current Assets

(Including Current 202545.7 172025.8 17.74
Investments)
Miscellaneous Expenses
0 0 0
not written off
Total Assets 1518287.5 1470138.2 3.28
Contingent Liabilities 10758.7 15064 -28.58
Total Debt 524150.1 520740.2 0.65

Book Value 259.04 246.04 5.28
Adjusted Book Value 259.04 246.04 5.28
BALANCE SHEET Rs. In millions

Parameter
MAR 19 MAR 18 YoY %Change
EQUITY AND LIABILITIES

NA NA NA
Share Capital 34199.4 34199.5 0

Equity - Authorised
17500 17500 0
Equity - Issued 12052.2 12052.2 0

Equity Paid Up 11447.4 11447.5 0
Equity Shares
Forfeited 2 2 0
Adjustments to Equity
22750 22750 0
Preference Capital
Paid Up 0 0 0
Face Value 10 10 0
Share Warrants &
Outstandings 0 0.2 -100
Total Reserves 655051.4 574506.5 14.02

Securities Premium
277780.9 277774 0
Capital Reserves
14369.4 1005.3 1329.36
Profit & Loss Account

Balance 140564.3 78019.9 80.16
General Reserves
121811.6 121819.7 -0.01
Other Reserves 100525.2 95887.6 4.84
48
Reserve excluding
Revaluation Reserve
654248.6 572954.2 14.19
Revaluation reserve
802.8 1552.3 -48.28
Shareholder's Funds
689250.8 608706.2 13.23
Minority Interest 23644.6 9365.2 152.47

Long-Term Borrowings
0 0 0
Secured Loans 273477.7 207908.8 31.54

Non Convertible
Debentures 0 0 0
Converible
Debentures & Bonds 0 0 0
Packing Credit - Bank

0 0 0
Inter Corporate &

Security Deposit 0 0 0
Term Loans - Banks

234589.1 178251.7 31.61
Term Loans -
Institutions 25641 24944.2 2.79
Other Secured 13247.6 4712.9 181.09

Unsecured Loans 529949.6 519982.2 1.92
Fixed Deposits - Public
0 0 0
Loans and advances

from subsidiaries 0 0 0
Inter Corporate
Deposits (Unsecured) 0 0 0
Foreign Currency
Convertible Notes
0 0 0
Long Term Loan in

Foreign Currency 0 0 0
Loans - Banks 210477.2 199426.1 5.54
49
Loans - Govt. 0 0 0
Loans - Others 0 0 0
Other Unsecured Loan
319472.4 320556.1 -0.34
Deferred Tax Assets /

Liabilities 116509.4 95340.8 22.2
Deferred Tax Assets

106689.5 74580.7 43.05
Deferred Tax Liability

223198.9 169921.5 31.35
Other Long Term

Liabilities 17564.3 20756.1 -15.38
Long Term Trade

Payables 0 0 0
Long Term Provisions

66996.7 68548 -2.26
Total Non-Current
Liabilities 1004497.7 912535.9 10.08
Current Liabilities NA NA NA
Trade Payables 217169.6 204138.1 6.38
Sundry Creditors
217169.6 204138.1 6.38
Acceptances 0 0 0
Due to Subsidiaries-
Trade Payables 0 0 0
Other Current Liabilities

265092.6 171991.5 54.13
Bank Overdraft /
Short term credit 0 0 0
Advances received
from customers 7696 5837 31.85
Interest Accrued But

Not Due 8489.6 8173.5 3.87
Share Application
Money 0 0 0
Current maturity of
Debentures & Bonds
0 0 0
50
Current maturity -
Others 3944.6 2523.1 56.34
Other Liabilities
244962.4 155457.9 57.57
Short Term Borrowings

108020.8 158849.8 -32
Secured ST Loans
repayable on Demands 54834 57187.9 -4.12
Working Capital
Loans- Sec 458.8 1396.2 -67.14
Buyers Credits - Unsec

0 0 0
Commercial
Borrowings- Unsec 0 0 0
Other Unsecured
Loans 52728 100265.7 -47.41
Short Term Provisions

20058.3 21634.7 -7.29
Proposed Equity
Dividend 0 0 0
Provision for
Corporate Dividend Tax 0 0 0
Provision for Tax

6364.2 7834.7 -18.77
Provision for post

retirement benefits 4960 5410.9 -8.33
Preference Dividend
0 0 0
Other Provisions
8734.1 8389.1 4.11
Total Current Liabilities

610341.3 556614.1 9.65
Total Liabilities 2327734.4 2087221.4 11.52

ASSETS NA NA NA
Gross Block 1784280.8 1454438.6 22.68
Less: Accumulated
Depreciation 510001.6 462511.2 10.27
Less: Impairment of
Assets 29860.1 30878.5 -3.3
Net Block 1244419.1 961048.9 29.49
51
Lease Adjustment A/c

0 0 0
Capital Work in Progress

179565.1 161598 11.12
Non Current
Investments 32133.1 29905 7.45
Long Term Investment

32133.1 29905 7.45
Quoted 4545.3 6994.6 -35.02

Unquoted 27587.8 22910.4 20.42
Long Term Loans &
Advances 251144.9 238564.7 5.27
Other Non Current

Assets 23715.4 12787.1 85.46
Total Non-Current
Assets 1737824.6 1408449.8 23.39
Current Assets Loans &

Advances NA NA NA
Currents Investments
25248.6 149089.7 -83.06
Quoted 0 0 0
Unquoted 25248.6 149089.7 -83.06
Inventories 316561 283310.4 11.74
Raw Materials 94823.1 76122.8 24.57
Work-in Progress
45918.1 51453 -10.76
Finished Goods 107408.3 96644.5 11.14

Packing Materials
0 0 0
Stores and Spare

42966.7 36244.4 18.55
Other Inventory
25444.8 22845.7 11.38
Sundry Debtors 118110 124155.2 -4.87

Debtors more than Six
months 5929.8 3915 51.46
Debtors Others 116109.4 122742.8 -5.4

Cash and Bank 33413.7 79378.5 -57.91
Cash in hand 16.7 15 11.33
Balances at Bank
33211.1 78526.9 -57.71
Other cash and bank

balances 185.9 836.6 -77.78
Other Current Assets

59553 11921.8 399.53
52
Interest accrued on
Investments 421 432.8 -2.73
Interest accrued on
Debentures 0 0 0
Deposits with
Government 0 0 0
Interest accrued and

or due on loans 0 0 0
Prepaid Expenses
151.8 136.6 11.13
Other current_assets
58980.2 11352.4 419.54
Short Term Loans and

Advances 37023.5 30916 19.76
Advances recoverable
in cash or in kind 21205.8 22054.4 -3.85
Advance income tax

and TDS 1339.4 622.8 115.06
Amounts due from

directors 0 0 0
Due From Subsidiaries

0 0 0
Inter corporate
deposits 0 0 0
Corporate Deposits
0 0 0
Other Loans &

Advances 14478.3 8238.8 75.73
Total Current Assets

589909.8 678771.6 -13.09
Net Current Assets

(Including Current
Investments) -20431.5 122157.5 -116.73
Miscellaneous Expenses
not written off 0 0 0
Total Assets 2327734.4 2087221.4 11.52

Contingent Liabilities
179352.2 143635.7 24.87
53
Total Debt 1008162.2 921470.5 9.41

Book Value 581.53 510.51 13.91
Adjusted Book Value
581.53 510.51 13.91
54
BALANCE SHEET AND PROFIT AND LOSS OF TATA STEEL LTD.
PROFIT AND LOSS Rs. In millions

Parameter MAR 19 MAR 18 YoY %Change
Gross Sales 1673020 1331760 25.62
Sales 1624760 1300750 24.91
Job Work/ Contract
Receipts NA NA NA
Processing Charges /
Service Income 1210 230 426.09
Revenue from
property development NA NA NA
Other Operational
Income 47050 30770 52.91
Less: Excise Duty

0 8610 -100
Net Sales 1673020 1323150 26.44

EXPENDITURE : NA NA NA
Increase/Decrease in
Stock 2330 -650 458.46
Raw Material
Consumed 672090 522940 28.52
Opening Raw
Materials 76120 73700 3.28
Purchases Raw
Materials 565750 415340 36.21
Closing Raw
Materials 94820 76120 24.57
Other Direct
Purchases / Brought in 125040 110030 13.64
cost
Other raw material
cost 0 0 0
Power & Fuel Cost

53170 44400 19.75
Electricity & Power

48650 40900 18.95
Oil, Fuel & Natural

gas 4510 3510 28.49
Coals etc 0 0 0
55
Other power & fuel

0 0 0
Employee Cost 193560 176570 9.62

Salaries, Wages &
Bonus 159800 144390 10.67
Contributions to EPF
& Pension Funds 27190 27410 -0.8
Workmen and Staff

Welfare Expenses
6560 4770 37.53
Other Employees
Cost 0 0 0
Other Manufacturing
Expenses 237830 192790 23.36
Sub-contracted / Out
sourced services
NA NA NA
Processing Charges
26810 26570 0.9
Repairs and
Maintenance 68050 58070 17.19
Packing Material
Consumed NA NA NA
Other Mfg Exp

142970 108150 32.2
General and
Administration 137660 76280 80.47
Expenses
Rent , Rates & Taxes
49400 36130 36.73
Insurance 2720 2820 -3.55

Printing and
stationery NA NA NA
Professional and
legal fees NA NA NA
Traveling and
conveyance NA NA NA
Other
Administration 85540 37320 129.21
56
Selling and Distribution

Expenses 86490 82050 5.41
Advertisement &
Sales Promotion NA NA NA
Sales Commissions &

Incentives 2600 2550 1.96
Freight and
Forwarding 83890 79500 5.52
Handling and
Clearing Charges 0 0 0
Other Selling
Expenses 0 0 0
Miscellaneous
Expenses 10350 20760 -50.14
Bad debts /advances

written off NA NA NA
Provision for
doubtful debts NA NA NA
Losson disposal of
fixed assets(net)
NA 500 NA
Losson foreign
exchange fluctuations
7860 18390 -57.26
Losson sale of non-

trade current
investments NA NA NA
Other Miscellaneous
Expenses 2490 1870 33.16
Less: Expenses
Capitalised 16640 10010 66.23
Total Expenditure
1376820 1105140 24.58
Operating Profit (Excl

OI) 296190 218010 35.86
Other Income 14230 10160 40.06
57
Interest Received
3170 2500 26.8
Dividend Received
340 390 -12.82
Profit on sale of
Fixed Assets 2670 NA NA
Profits on sale of
Investments 7090 6810 4.11
Provision Written
Back NA NA NA
Foreign Exchange
Gains NA NA NA
Others 970 460 110.87

Operating Profit 310420 228170 36.05
Interest 77420 55020 40.71
InterestonDebenture
/ Bonds 75370 51660 45.9
Interest on Term
Loan NA NA NA
Intereston Fixed
deposits NA NA NA
Bank Charges etc

NA NA NA
Other Interest
2040 3350 -39.1
PBDT 233000 173150 34.57

Depreciation 75790 59620 27.12
Profit Before Taxation
& Exceptional Items
157210 113530 38.47
Exceptional Income /
Expenses -1360 95990 -101.42
Profit Before Tax

155850 209520 -25.62
Provision for Tax

67090 34050 97.03
Current Income Tax

67400 20030 236.5
Deferred Tax -320 14030 -102.28

Other taxes -630 28050 -102.25
Profit After Tax 88760 175470 -49.42
Extra items NA NA NA
58
Minority Interest
11200 -43280 125.88
Share of Associate
2220 2160 2.78
Other Consolidated
Items NA NA NA
Consolidated Net Profit

102180 134340 -23.94
Adjustments to PAT
-19020 100190 -118.98
Profit Balance B/F

78020 -114470 168.16
Appropriations 161180 120060 34.25

General Reserves
NA NA NA
Proposed Equity
Dividend NA NA NA
Corporate dividend
tax NA NA NA
Other Appropriation
20610 42040 -50.98
Equity Dividend %
163 100 63
Earnings Per Share

89 117 -23.93
Adjusted EPS 89 117 -23.93
59
RATIO ANALYSIS OF
HINDALCO INDUSTRIES AND TATA STEEL
Ratio analysis is such a significant technique for financial analysis. It indicates relation of
two mathematical expressions and the relationship between two or more things. Financial
ratio is a ratio of selected values on an enterprise's financial statement. There are many
standard ratios used to evaluate the overall financial condition of a corporation or other
organization. Financial ratios are used by managers within a firm, by current and potential
stockholders of a firm, and by a firm‘s creditor. Financial analysts use financial ratios to
compare the strengths and weaknesses in various companies.
Current Ratio
Current Ratio : Current ratio is a liquidity ratio which measures a company's ability to pay
its current liabilities with cash generated from its current assets. It equals current assets
divided by current liabilities.
Current Ratio = Current Assets/Current Liabilities
Currrent Ratio
2
1.5
0.5
0
2018 2019
Hindalco Tata Steel
Current ratio
Year Hindalco Tata Steel
2018 1.52 1.22
2019 1.6 0.97
Quick Ratio
60
Quick Ratio : Quick ratio (also known as acid-test ratio) is a liquidity ratio which measures
the dollars of liquid current assets available per dollar of current liabilities. Liquid current
assets are current assets which can be quickly converted to cash without any significant
decrease in their value. Liquid current assets typically include cash, marketable securities
and receivables. Quick ratio is expressed as a number instead of a percentage.
Quick Ratio= Total Quick Assets/Total Current Liabilities
Quick Ratio
1
0.8
0.6
0.4
0.2
0
2018 2019
Hindalco Tata Steel
Quick Ratio
2018 0.86 0.71
2019 0.94 0.45
Net Profit Ratio

Net Profit Ratio : Net profit margin (also called profit margin) is the most basic profitability
ratio that measures the percentage of net income of an entity to its net sales. It represents
the proportion of sales that is left over after all relevant expenses have been adjusted.
Net Income
Net Profit Margin =
Net Sales
Net Sales = Gross Sales − Sales Tax − Discounts − Sales Returns
61
Net Profit Ratio

14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2018 2019
Hindalco Tata Steel
Net Profit Ratio

2018 5.36% 13.18%
2019 4.21% 5.31%
Debt-Equity Ratio
Debt-Equity Ratio: Debt-to-Equity ratio is the ratio of total liabilities of a business to its
shareholders' equity. It is a leverage ratio and it measures the degree to which the assets of
the business are financed by the debts and the shareholders' equity of a business.
Debt-to-Equity Ratio = Total Liabilities/Shareholders' Equity
Debt-Equity Ratio
2
1.5
0.5
0
2018 2019
Hindalco Tata Steel
Debt-Equity Ratio
2018 0.95 1.52
2019 0.91 1.46
62
Total Asset Turnover Ratio

Total Asset Turnover : Asset turnover ratio is the ratio of a company's sales to its
assets. It is an efficiency ratio which tells how successfully the company is using its assets to
generate revenue.
Net Sales
Total Assets Turnover Ratio =
Average Total Assets
Asset Turnover Ratio

1.2
1
0.8
0.6
0.4
0.2
0
2018 2019
Hindalco Tata Steel
Asset Turnover Ratio

2018 0.79 0.70
2019 0.87 0.96
Earnings Per Share
Earnings Per Share

140
120
100
80
60
40
20
0
2018 2019
Hindalco Tata Steel
63
Earnings per share (EPS) is calculated as a company's profit divided by the outstanding
shares of its common stock. The resulting number serves as an indicator of a company's
profitability. It is common for a company to report EPS that is adjusted for extraordinary
items and potential share dilution. The higher a company's EPS, the more profitable it is
considered.
EPS RATIO = Net Income-Preference Dividend/No. Of Equity Shares
Earnings Per Share

2018 27.29 117.36
2019 24.71 89.26
64
FINDINGS/CONCLUSIONS
 Hindalco Industries and Tata Steel are leaders in their respective market for
aluminium,copper and steel respectively
 We see that Hindalco Industries has higher current ratios than Tata Steel in each
of the two years which means that Hindalco is in a better position to meet short-
term liabilities with short-term assets. Hindalco sees improvement in their
liquidity and Tata Steel doesnot.
 Tata Steel has a quick ratio of 0.71 and 0.45 as compared to 0.86 and 0.94 in
case of Hindalco. While Tata Steel quick ratio is quite safe, Hindalco has better
overall liquidity particularly in a crunch situation.
 Tata Steel is the most profitable of the three companies. It managed to convert
13.18% and 5.31% of its sales into net income for the year 2018 and 2019
respectively.Hindalco is the least profitable and generated 5.36% and 4.21% net
profit margin.
 Lower values of debt-to-equity ratio are favorable indicating less risk. Higher
debt-to-equity ratio is unfavorable because it means that the business relies more
on external lenders thus it is at higher risk, especially at higher interest rates. A
debt-to-equity ratio of 1.00 means that half of the assets of a business are
financed by debts and half by shareholders' equity. A value higher than 1.00
means that more assets are financed by debt that those financed by money of
shareholders' and vice versa.An increasing trend in of debt-to-equity ratio is also
alarming because it means that the percentage of assets of a business which are
financed by the debts is increasing.Here Hindalco is in a favourable position
compared to Tata steel with Debt to equity ratio for 2018 and 2019 being lower
then 1.00 which is 0.95 and 0.91 respectively , While Tata Steel Debt to equity
ratio is highet than 1:00 for both the years although it doesnot shows a rising
trend in the increase of Debt to equity ratio
 If a company can generate more sales with fewer assets it has a higher turnover
ratio which tells us that it is using its assets more efficiently. On the other hand,
a lower turnover ratio shows that the company is not using its assets optimally.
 Earning Per Share is much Higher for Tata which means in case of any
dissapointment the Market would severly punish the Stock with an overreaction.
65
And if the dissapoitment is not temporary the investors will experience a high
lost and the recovery from it would take a long time. in case of any
dissapointment, Mr. Market would severly punish the Stock with an
overreaction. And if the dissapoitment is not temporary the investors will
experience a high lost and the recovery from it would take a long time.
 Earnings per share is lower for Hindalco Industries compared to Tata Steel
Market has no hope about the growth prospects of the Company. But Market is
very short term oriented. In long term, the stock can be a star of the market
which heavily depends on the CEO. Usually, the stocks with low eps have low
volatility unless the reason for low eps is that the company is in a trouble. In the
later case, the stock can be very volatile.
66
BIBLIOGRAPHY
 https://www.tatasteel.com/
 http://www.hindalco.com/
 https://www.investing.com/
 https://www.screener.in/
67

Project 1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Project 1

Uploaded by

Copyright:

Available Formats

COMPARATIVE RATIO ANALYSIS OF HINDALCO INDUSTRIES AND TATA STEEL

COMPARATIVE RATIO ANALYSIS OF

HINDALCO INDUSTRIES AND TATA STEEL

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

MASTER OF MANAGEMENT STUDIES

JAGDISH SINGH BOLYAN

MMS-II (SEM III)

YEAR 2018- 2020

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

MASTER OF MANAGEMENT STUDIES

JAGDISH SINGH BOLYAN

MMS-II (SEM III)

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

SUMMER INTERNSHIP PROJECT

JAGDISH SINGH BOLYAN

MMS – II (SEM III)

YEAR 2018 - 2020

COLOURED XEROX OF THE INTERNSHIP CERTIFICATE GIVEN

Date: 11th September, 2019

Prof. Vikas Sharma Dr V.B. Angadi

I, Jagdish Singh Bolyan , student of Lala Lajpatrai Institute of Management of

Name of the student

I am very grateful to Dr. Angadi, Director of Lala Lajpat Rai Institute of

This report is an analysis of the financial operations and performance of the

SR. CONTENT PAGE NO.

2 OBJECTIVES AND TECHNIQUES 2

4 YEAR EVENT OF HINDALCO 7

6 YEAR EVENTS OF TATA STEEL 30

7 BALANCE SHEET AND PROFIT AND 40

IIFL is a financial services conglomerate which was started by a group of passionate

To be the most respected financial services company in India.

 To study the profitability of Hindalco Industries and Tata Steel.

Measurement technique/Statistical tools

-Financial statements of the company

To relentlessly pursue the creation of superior shareholder value, by exceeding customer

Honesty in every action

On the foundation of integrity, doing what it takes to deliver, as promised

Missionary zeal arising out of an emotional engagement with work

Responding to stakeholders with a sense of urgency

HISTORY OF HINDALCO INDUSTRIES

- The Company was Incorporated on 15th December, at Mumbai to manufacture alumina,

- 33,46,622 Bonus Equity shares issued in proportion 1:3 in June.

- The Company issued 40,00,000-15% non-convertible debentures of Rs 100 each for Rs 40

- Conform extrusion machine was installed and commissioned.

- During January-February, the Company issued 53,54,595-12.5% secured redeemable partly

- 63,81,234 No of Equity Shares allotted in part conversion of 12.5% debentures as on

- The Company issued 40,00,000-17.5% redeemable non-convertible debentures of Rs 100

- It was also proposed to undertake a further expansion of alumina production capacity to

- The Company issued 25,00,000-17% secured non-convertible redeemable debentures of Rs

- These GDRs were offered to non-U.S. persons in offshore transactions in reliance on

- Following a comprehensive technological upgradation of the Company's hot and cold

- 24,827,990 bonus shares issued in prop. 1:2.

- Hindalco commissioned the potline, where aluminium is smelted by an electrolytic process,

-Hindalco, Indal marketing division integrated

-Launches its new product 'Aura' aluminium wheels

-Board of Directors approves buyback of shares

-Receives the FICCI-Socio Economic Development Foundation's (FICCI-SEDF) Social

-Birlas increase stake in the company to 22.8% from 21.4%

-Acquires 4% stake in National Aluminium Company Ltd. (Nalco)

-Indo Gulf's investments in group firms transferred to Hindalco Industries

-Hindalco discontinues scheme of buyback

-Sebi stalls Hindalco's Indal open offer