CHAPTER-4.

1
DATA ANALYSIS
AND
INTERPRETATION

1
 DATA ANALYSIS AND INTERPRETATION
OVERALL PROFITABILITY RATIO
OPERATING PROFIT TO OPERATING ASSETS
TABLE.4.1
YEARS OPERATING PROFIT OPERATING ASSETS RATIO IN %
Mar '22 11126.24 81121.19 7.29
Mar’21 11536.77 76315.18 6.61
Mar '20 11482.29 73092.81 6.37
Mar '19 8905.59 62407.95 7.01
Mar '18 9176.44 56650.78 6.17

OPERATING PROFIT RATIO IN %

11536.77

11482.29
11126.24

9176.44
8905.59

7.01

6.17
7.29

6.61

6.37

Mar '2 2 Mar ’ 2 1 Mar '2 0 Mar '1 9 Mar '1 8

INTERPRETATION: The above graph shows operating profits ratio 7.29 in the year 2022 and
7.01 in the year 2019. its giving status of company profitability.

2
 DEBTORS TURNOVER RATIO = TOTAL SALES / DEBTORS
TABLE.4.2

YEARS TOTAL SALES DEBTORS RATIOS%

Mar '22 27073.19 81121.19 0.33

Mar’21 22396.69 76315.18 0.29

Mar '20 17914.06 73092.81 0.25

Mar '19 16035.06 62407.95 0.26

Mar '18 15171.88 56650.78 0.27

81121.19

TOTAL SALES DEBTORS RATIOS%

76315.18

73092.81

62407.95

56650.78
27073.19

22396.69

17914.06

16035.06

15171.88
0.29

0.25
0.33

0.26

0.27

Mar '2 2 Mar ’ 2 1 Mar '2 0 Mar '1 9 Mar '1 8

INTERPRETATION: Debtor’s turnover ratio indicates the relation between net credit sales and
average accounts receivables of the year. The ratio of 2021 (0.29) and 2022 (0.33) effectively
moved.

3
 CURRENT RATIOS: CURRENT ASSETS/CURRENT LIABILITIES
TABLE.4.3
YEARS CURRENT ASSETS CURRENT LIABILITIES RATIOS%
Mar '22 -2895 18999.02 -0.15
Mar’21 -1392 18039.57 -0.08
Mar '20 9110.5 14288.41 0.64
Mar '19 1422.3 13184.61 0.11
Mar '18 -308.3 12188.55 -0.03

CURRENT ASSETS CURRENT LIABILITIES RATIOS%

18999.02

18039.57

14288.41

13184.61

12188.55
9110.5

1422.3
0.64

0.11

Mar '2 2 Mar ’ 2 1 Ma r '2 0 Mar '1 9 Mar '1 8

-0.03
-0.15

-0.08

-308.3
-1392
-2895

INTERPRETATION :The Above Graph Shows Its Represents -0.03 to -0.15 march 2018
to 2021 here we decribed slightly moving negetive and positve market.

4
 OPERATING MARGIN = OPERATING INCOME
REVENUE (PAT)
TABLE.4.4

YEARS Operating Income PAT RATIOS%

Mar '22 38199 5737.5 6.66

Mar’21 33933 6185.41 5.49

Mar '20 29396 6217.6 4.73

Mar '19 24941 4137.31 6.03

Mar '18 24348 4904.03 4.96

Operating Income PAT RATIOS%

38199

33933

29396

24941

24348
6185.41

4904.03
6217.6

4137.31
5737.5

6.66

4.73
5.49

6.03

4.96
Ma r '2 2 Mar ’ 2 1 Ma r '2 0 Mar '1 9 Mar '1 8

INTERPRETATION: The above graph shows operating income were getting continuously
increased from the year 2018 .Every business consist of taxes they were rejected profit after tax
while showing business auditing .It represents capital is very important for running business.

5
PAT: PBT-TAXES
TABLE: 4.5

PAT (NET INCOME)    

YEARS PBT TAXES DIFF(PAT)

Mar '22 8511.1 2773.63 5737.5

Mar’21 9346.3 3160.93 6185.41

Mar '20 9128.8 2911.16 6217.6

Mar '19 6305.8 2168.5 4137.31

Mar '18 7018.9 2114.87 4904.03

PAT (NET INCOME) PBT PAT (NET INCOME) TAXES PAT (NET INCOME) DIFF(PAT)
9346.3

9128.8
8511.1

7018.9
6185.41

6305.8
6217.6
5737.5

4904.03
4137.31
3160.93

2911.16
2773.63

2114.87
2168.5

Mar '2 2 Mar ’ 2 1 Mar '2 0 Mar '1 9 Mar '1 8

INTERPRETATION: The Above graph shows PAT for five years in the year of 2019 4137 it
was low than 2020 6217. Profit is very important source for enhance every business.

6
 OPERATING PROFIT MARGIN
OPERATING PROFIT TO SALES
TABLE: 4.6

Years PAT Sales Ratio in %

Mar '22 5737.5 27073.19 4.72
Mar’21 6185.41 22396.69 3.62
Mar '20 6217.6 17914.06 2.88
Mar '19 4137.31 16035.06 3.88
Mar '18 4904.03 15171.88 3.09
27073.19

PAT Sales Ratio in %

22396.69

17914.06

16035.06

15171.88
6185.41

6217.6
5737.5

4904.03
4137.31
3.62

2.88
4.72

3.88

3.09

Mar '2 2 Mar ’ 2 1 Mar '2 0 Mar '1 9 Mar '1 8

INTERPRETATION : The above graph show OPERATING PROFIT MARGIN here we

described from 2018 -2022 3.09 to 4.72 increased ratio means more profitability.

7
 YEARLY SALES TREND FOR FIVE YEARS

YEARS SALES
Mar '22 27073.19
Mar’21 22396.69
Mar '20 17914.06
Mar '19 16035.06
Mar '18 15171.88

SALES
27073.19

22396.69

17914.06

16035.06

15171.88
Mar '2 2 Mar ’ 2 1 Mar '2 0 Mar '1 9 Mar '1 8

INTERPRETATION : The above graph show sales trend 15171.88 to 27073.19

increased sales through demand and supply .

8
 STATTISTICAL ANALYSIS
Table1. CORRELATION MATRIX FOR ANALYZED VARIABLES OF
BANKS OPERATING IN INDIA
1 0.9166 0.9280 0.8340 0.9494 0.9718 0.9388 0.7580

0.9166 1 0.8569 0.6599 0.9031 0.8256 0.9166 0.7796

0.9280 0.8569 1 0.8311 0.8044 0.6638 0.8838 0.8947

0.8340 0.6599 0.8311 1 09341 0.8758 0.9520 0.7807

0.9494 0.9031 0.8044 0.9341 1 0.8505 0.7727 0.9086

0.9718 0.8256 0.6638 0.8758 0.8505 1 0.7609 0.9308

0.9388 0.9166 0.8838 0.9520 0.7727 0.7609 1 0.8337

0.7580 0.7796 0.8947 0.7807 0.9086 0.9308 0.8337 1

INTERPRETATION:
correlation matrix between cash assets TATA STEELs, financial assets, loans and receivables,
fixed assets and saving, non-saving liabilities, other liabilities and equity is presented. When Table
3.1. is analyzed it is seen that relations between variables are high. In the Table 3.2, in order to obtain
canonical correlation coefficients eigen values of matrix are presented. Because canonical
correlation coefficients will be square roots of eigen values in Table 3.2, these coefficients pertaining
to two random variable sets are obtained as r1= 0,9998, r2=0,5981, r3=0,438 and r4=0,092

9
 1. Significance test of canonical correlation coefficients with Barlett’s Chi-square approach

Canonical Correlation
Coefficients Wilk's Chi-square s.d. e.v.

0,999 0.000 319.357 16 0

0.452 0.220 49.175 9 0,139

0.438 0.802 7.179 4 0.127

0.092 0.992 0.274 1 0.601

INTERPRETATION: When banks assets are taken as u1 canonical variable and

their liabilities are taken as v1 canonical variable, obtained variables with maximum

correlations

u1 = 0.025 x1 + 0.027x2 + 0.029x3 + 0.031x4

v1 = 0.027 x1 + 0.029x2 + 0.028x3 + 0.027x4

can be expressed as one each linear combination of original variables. When one

looks at the coefficients constituting the first canonical variable, an increase in cash

assets

10
BALANCE SHEET (RS CRORE) TATA STEEL PVT LTD
 
  Mar 22 Mar '21 Mar '20 Mar '19 Mar '18
Sources of funds          
Owner's fund          
Equity share capital 971.41 971.41 959.41 887.41 730.79
Share application money - - 178.2 - -
Preference share capital - - - - 5,472.66
Reserves & surplus 54,238.27 51,649.95 45,807.02 36,281.34 23,501.15
Loan funds          
Secured loans 4,311.02 4,190.47 3,509.18 2,259.32 3,913.05
Unsecured loans 21,600.49 19,503.35 22,639.00 22,979.88 23,033.13
Total 81,121.19 76,315.18 73,092.81 62,407.95 56,650.78
Uses of funds          
Fixed assets          
Gross block 38,056.28 23,081.58 22,497.83 22,306.07 20,057.01
Less : revaluation reserve - - - - -
Less : accumulated depreciation 13,181.23 11,715.32 10,692.73 10,143.63 9,062.47
Net block 24,875.05 11,366.26 11,805.10 12,162.44 10,994.54
Capital work-in-progress 8,722.29 16,058.49 5,612.28 3,843.59 3,487.68
Investments 50,418.80 50,282.52 46,564.94 44,979.67 42,371.78
Net current assets          
Current assets, loans & advances 17,860.79 18,483.79 25,569.40 13,425.27 11,591.66
Less : current liabilities & provisions 20,755.74 19,875.88 16,458.91 12,003.02 11,899.95
Total net current assets -2,894.95 -1,392.09 9,110.49 1,422.25 -308.29
Miscellaneous expenses not written - - - - 105.07
Total 81,121.19 76,315.18 73,092.81 62,407.95 56,650.78
Notes:          
Book value of unquoted investments 49,434.56 49,617.55 45,899.97 44,243.24 41,665.63
Market value of quoted investments 4,904.96 4,911.43 4,914.95 4,397.79 1,491.89
Contingent liabilities 18,999.02 18,039.57 14,288.41 13,184.61 12,188.55
Number of equity shares outstanding
(Lacs) 9712.15 9712.14 9592.14 8872.14 7305.92

11
PROFIT & LOSS ACCOUNT------------------- IN RS. CR. -------------------
TATA STEEL
Mar 22 Mar '21 Mar '20 Mar '19 Mar '18
Income          
29,396.3 26,757.6 26,843.5
Sales Turnover 38,199.43 33,933.46 5 0 3
Excise Duty 0 0 0 1,816.95 2,495.21
29,396.3 24,940.6 24,348.3
Net Sales 38,199.43 33,933.46 5 5 2
Other Income 227.51 1,397.44 1,176.45 1,241.08 603.07
Stock Adjustments 404.6 220.72 173.65 -134.97 289.27
30,746.4 26,046.7 25,240.6
Total Income 38,831.54 35,551.62 5 6 6
Raw Materials 12,421.63 9,917.37 7,841.47 8,356.45 8,568.71
Power & Fuel Cost 2,510.17 1,990.16 1,558.49 1,383.44 1,222.48
Employee Cost 3,608.52 3,047.26 2,837.46 2,361.48 2,305.81
Other Manufacturing
Expenses 0 0 0 2,419.89 2,127.48
Selling and Admin
Expenses 0 0 0 417.9 400.24
Miscellaneous Expenses 8,937.47 7,662.62 5,850.29 1,287.04 1,180.08
Preoperative Exp
Capitalized 0 0 0 -326.11 -343.65
18,087.7 15,900.0 15,461.1
Total Expenses 27,477.79 22,617.41 1 9 5
11,482.2
Operating Profit 11,126.24 11,536.77 9 8,905.59 9,176.44
12,658.7 10,146.6
PBDIT 11,353.75 12,934.21 4 7 9,779.51
Interest 1,876.77 1,925.42 1,735.70 1,848.19 1,489.50
10,923.0
PBDT 9,476.98 11,008.79 4 8,298.48 8,290.01
Depreciation 1,640.38 1,151.44 1,146.19 1,083.18 973.4
Other Written Off 0 0 0 0 0
Profit Before Tax 7,836.60 9,857.35 9,776.85 7,215.30 7,316.61
Extra-ordinary items 0 0 0 0 0
PBT (Post Extra-ord
Items) 7,836.60 9,857.35 9,776.85 7,215.30 7,316.61
Tax 2,773.63 3,160.93 2,911.16 2,168.50 2,114.87
Reported Net Profit 5,062.97 6,696.42 6,865.69 5,046.80 5,201.74
10,246.2
Total Value Addition 15,056.16 12,700.04 4 7,543.64 6,892.44
Preference Dividend 0 0 0 45.88 109.45
Equity Dividend 776.97 1,165.46 1,151.06 709.77 1,168.95
Corporate Dividend Tax 128.73 181.57 156.71 122.8 214.1
Per share data
(annualized)          
12
Shares in issue (lakhs) 9,712.15 9,712.14 9,592.14 8,872.14 7,305.92
Earning Per Share (Rs) 52.13 68.95 71.58 56.37 69.7
Equity Dividend (%) 80 120 120 80 160
Book Value (Rs) 568.46 541.81 487.55 418.94 331.68

CHAPTER -5
FINDINGS, SUGGESTIONS AND
CONCLUSION

13
 FINDINGS

 I found that operating profits ratio 7.29 in the year 2021 and 7.01 in the year 2018.its
giving status of company profitability.
 I found that Debtor’s turnover ratio indicates the relation between net credit sales and
average accounts receivables of the year. The ratio of 2020 (0.29) and 2021 (0.33)
effectively moved.
 Current Ratios Its Represents -0.03 to -0.15 march 2018 to 2021 here we decribed
slightly moving negetive and positve market.
 operating income were getting continuously increased from the year 2018.
 Every business consists of taxes they were rejected profit after tax while showing
business auditing. It represents capital is very important for running business.
 PAT for five years in the year of 2018 4137 it was low than 2019 6217. Profit is very
important source for enhance every business.
 OPERATING PROFIT MARGIN here we described from 2018 -2021 3.09 to 4.72
increased ratio means more profitability.
 sales trend 15171.88 to 27073.19 increased sales through demand and supply.

14
 SUGGESTIONS
 The company has to maintain the administrative expenses and selling & distribution expenses
in a constant manner, irrespective of changes in sales volume.
 The company should invest the idle funds in the marketable securities to earn high returns on
the investments.
 Manufacturing expenses are to be controlled to increase the gross profit.
 The company has to reduce the long-term debt to improve the profitability.
 The company has to maintain the control over operating expenses in order to increase the
profitability.
 The company has to concentrate on maintaining the trend of the sales proportionate to the
trend of total assets to increase the assets turnover ratio.
 The variable portion of the selling and distribution expenses, which are controllable, can be
reduced, to decrease the operating expenses and increases the operating profit.

15
 CONCLUSION
Liquidity is an attribute that signifies the capacity to meet financial obligations as and
when required. The importance of liquidity to meet the current obligations as and when they
become due for payment can hardly be over emphasized.
A firm should maintain adequate level of working capital to meet the current obligations and
maintain business operations.
The effective management of working capital requires both medium-term planning and
immediate reactions to the fast changes taking in the present business environment.
Working capital management is the functional area of finance that covers all the current accounts
of the firm. It is concerned with the adequacy of current assets as well the level of risk posed by
current liabilities.
Efficient handling of company liquidity provides goodwill about the company as well as success
of the company.
TATA STEEL Limited highly maintained adequate liquidity and profitability standard. As a
result their growth rate of its fixed assets during the study

16
 BIBLIOGRAPHY

Author : I.M. PANDEY

Title of the book : Financial Management
Publisher : Vikas Publishing House Pvt. Ltd.
Edition : Ninth Edition
Author : Prasanna Chandra
Title of the book : Financial Management
Publisher : Tata McGraw-Hill Co. Ltd.
Edition : Seventh Edition
Author : I.M. PANDEY
Title of the book : Financial Management
Publisher : Tata McGraw-Hill Co. Ltd.
Edition : Fourth Edition
References
 Financial Decision Making Concepts, Problems and Cases, 4th edition-John J Hampton
 An introduction to effective working capital (liquidity) management, Michael Lembach.
 Annual reports of TATA STEEL Ltd.

17