TATA STEEL

(Mini project)
 Annual report 2018-2019

Introduction: Financial statements are how companies communicate their story. Together these statements
represent the profitability and financial strength of a company. The financial statement that reflects a company’s
profitability is the income statement. The statement of owner’s equity—also called the statement of retained
earnings—shows the change in retained earnings between the beginning and end of a period (e.g., a month or a
year). The balance sheet reflects a company’s solvency and financial position. The statement of cash flows
shows the cash inflows and outflows for a company during a period.

Annual report: An annual report is a comprehensive report detailing a company’s activities throughout the
preceding year. Its purpose is to provide users, such as shareholders or potential investors, with information
about the company’s operations and financial performance. Annual reports provide a significant amount of
information for its readers who will be able to get a good overview of the company’s overall performance in the
preceding year. It is important to note that many annual reports are not traditional reports with large amounts of
text; many companies often incorporate a lot of graphics and images, resulting in a visually appealing
document.
Annual Financial Report 2018-19 Company
overview. Tata Steel
was established in
Accounting For Managers India as Asia’s first
integrated private
steel company in
Submitted – Prof. Aditya Kumar Tripathi 1907. With this, we
also developed
India’s first industrial
city at Jamshedpur.
Today, it is among
the leading global
steel companies. Our
Group 1 annual crude steel
capacity across
Madhvi gupta 21BSP3171 Indian operations is
Nisha Biswas 21BSP nearly 20 MnTPA
and we registered a
Nishchal Chaudhary 21BSP0927 turnover of INR
Prachi Tomar 21BSP0943 91,037 crore in
FY21. We also set up
Saransh Khandelwal 21BSP2900 our second greenfield
steel plant of 3
MnTPA in the
eastern state of
Odisha in 2016; the
expansion to 8
MnTPA is currently underway. We possess and operate captive mines that help us maintain cost-
competitiveness and production efficiencies through an uninterrupted supply of raw material. This is how we
ensure that we remain the lowest cost producer of steel in Asia
Vision: Tata steel aspires to be the global steel industry benchmark for Value Creation and Corporate
Citizenship.

Mission: Consistent with the vision and values of the

Founder Jamsetji Tata, Tata Steel strives to strengthen India’s industrial base
Through the effective utilization of staff and materials. The means envisaged
to achieve this are cutting-edge technology and high productivity, consistent
with modern management practices. Tata Steel recognizes that while honesty and
integrity are essential ingredients of a strong and stable enterprise,
profitability provides the main spark for economic activity. Overall, the
The company seeks to scale the heights of excellence in all it does in an atmosphere
free from fear and thereby reaffirms its faith in it.

Objectives: 

 Taking prospective economic decisions

 Providing information about the financial position, performance and changes in financial position of an
entity

 Presenting and disclosing information about the company

 To lure new investors and make adequate disclosures to the existing ones.

Methodologies used
 Statement of Profit and loss account
 Balance sheet
 Cash flow statement
 Ratio analysis

Facts
Statement of Profit and loss 2018-2019 (Consolidated)
Balance sheet as on 31st march 2019 (Consolidated)
Cash flow statement
 Ratios
Financial Ratios
S.No. 2018-19 2018-17
1 EBITDA/Turnover 18.88% 17.22%
2 PBET/Turnover 10.16% 9.15%
3 Return on average capital employed 12.98% 10.87%
4 Return on average net worth 13.67% 35.09%
5 Asset turnover 69.20% 64.69%
6 Inventory turnover (in days) 72 80
7 Debtors turnover (in days 28 35
8 Gross block to net block 1.4 1.47
9 Net debt to equity 1.43 1.37
10 Current ratio 1.39 1.46
11 Interest service coverage ratio 1.38 4.13
12 Net worth per share 622.75 539.92
13 Dividend payout 20% 8%
14 P/E ratio 5.9 4.52

Analysis
 Revenue from operation: This is the revenue that is usually generated by business operations. Here,
Tata steel’s Revenue from operation in 2018 was increased from 17.22 to 18.88% in 2019 which is a
good sign for the company. Higher the percentage reflects higher growth of the company.
 Assets turnover: A company with a high asset turnover ratio operates more efficiently. As in 2017-18
the Asset turnover ratio of TATA Steel is 64.63% while on the other hand the asset turnover ratio of
2018-19 is 69.20% which show the increment of 4.57% which is a descent number to show the growth
of a company.
 Inventory turnover: It is a measure of how much the inventory is soldin a time period. In 2018
inventory turnover per day was 80, which has decreased to 72 in year 2019. It is a negative point for the
company as the overall sale is decreasing.
 Debtors turnover: The Debtors Turnover Ratio also called as Receivables Turnover Ratio shows how
quickly the credit sales are converted into the cash. In 2017-18 it takes 35 days to convert the credit sales
into cash while in2018-19 it takes only 28 days which clearly shows that the efficiency of the company
is increased in converting the credit sales into the cash.
 Debt to equity : Tata steel has $1.43 of debt for every $1 of equity. A net debt to equity ratio should
not be above than 2.0. so, in this case the company is having an acceptable debt to equity ratio.
 Current ratio :Tata steel being with 1.39 of a current ratio has more than enough cash to meet its
liabilities while using its capital effectively
 Interest coverage ratio: This ratios determines the company’s total interest payable capacity that how
much the intrest had been paid.
  Dividend payout: The dividend Payment percentage has been increased from 8% to 20%, which is a
good sign for the investors but not for company. Company must hold some dividend according to its
revenue.

Conclusion

From the above assignment we contemplated the money related position of the organisation. How the
organisation has been functioning in its most recent 3 years and feeling about its working for the same.
Well at first these figures look great and shocking however the exertion the organisation has set up to reach to
this level is incredible. In TATA steel Ltd. each worker is treated with poise and regard since organisation trusts
that regard and nobility are two critical things that a representative need to give his and hers greatest for the
association and to the extent of the achievement the figures expressed above demonstrates it without questions.
The money related ratios ascertained above demonstrates a radical increment in the organisation”s budgetary
execution. There is a planned development in the gainful proportions and on the whole. The gross profit edge
has been expanded to cover tge most recent three years. The company is monetarily and exceptionally solid as
their ventures are going admirably . TATA steel Ltd. continuously has confidence in knowing the market well,
its rivals well or more all tge economy of the country that they perform in. TATA steel Ltd. has additionally
been perceived by Forbes for its extraordinary execution in the market schemes.
 References
 https://ticker.finology.in/company/TATASTEEL
 https://www.moneycontrol.com/india/stockpricequote/steellarge/tatas
teel/TIS
 https://www.tatasteel.com/
 https://www.tickertape.in/stocks/tata-steel-TISC?checklist=basic
 https://www.bseindia.com/stock-share-price/tata-steel-
ltd/tatasteel/500470/
 https://www.tatasteel.com/investors/integrated-report-2018-
19/consolidated-balancesheet.html