CHAPTER 1

INTRODUCTION

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1. INTRODUCTION

1.1 INTRODUCTION

Numerous industries promote the growth of the national economy. Because steel is so important to the
development of infrastructure and the economy as a whole, it is frequently used as a measure of
economic growth. One key factor in a nation's socioeconomic development is the amount of steel
consumed per capita.

As a fundamental sector in India, the industries long-term drives national economic growth. India is the
entire world's fourth-largest manufacturer of steel. The availability of inexpensive labour and raw
supplies domestically favours the Indian steel industry. Tata Steel is one of the top steel-producing
companies in the world, and it has joint ventures and subsidiaries all around the globe.

The current study paper uses a ratio analysis framework to examine the financial performance of Tata
Steel Ltd. The paper's main goal is to assess and appraise Tata Steel's performance during the course of
the study period. The analyst makes an effort to assess the company's solvency, liquidity, profitability,
and various other indicators in a logical and typical method in order to estimate the efficiency of the
company.

The most effective instrument for financial analysis is ratio analysis. According to the financial
operation or activity that has to be assessed, a number of ratios derived from the accounting data will be
classified into a variety of classifications. Many different groups of individuals are interested in
analyzing financial data to show the operational and financial effectiveness and growth of a business, as
it started out. These individuals employ ratios to ascertain the financial aspects of the company in which
they are interested.

The company's financial strength must be of special importance to management so they can make the
most of it and identify any financial problems so they can take the appropriate corrective action. The
company's future ambitions should be outlined in light of its financial strengths and shortcomings.
Therefore, financial analysis comes first when establishing plans before utilizing any complex planning
and forecasting techniques. To predict the future, one must first understand the past.

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1.2 STATEMENT OF THE PROBLEM

In order to better comprehend a company's situation and performance, it is necessary to evaluate the
basic components of financial statements. Analysing financial performance may be used to assess past,
present, and future performance as well as to anticipate future success.

The goal of the research is to determine TATA STEEL LTD's financial analysis by looking at its
condition in terms of liquidity, solvency, activity, and profitability.

1.3 NEED OF THE STUDY

1. The study is very important and benefits many people who are connected to the organization
either directly or indirectly.
2. The management of the firm benefits from having an extensive understanding of crucial
elements including liquidity, solvency, activity, and profitability.
3. The research is also helpful to the workforce and provides encouragement by demonstrating the
extent to which they are contributing to the expansion of the business.
4. Going through the research could be beneficial to investors who are considering buying business
shares, as they are better able to decide if they want to buy firm shares.

1.4 OBJECTIVES OF THE STUDY

The main objectives of the most recent study were to use financial ratio analysis to determine TATA
STEEL LTD's financial strengths and weaknesses.
The main objectives of the present research were to assess the success of the business utilising ratios as a
metre for evaluating its effectiveness. to comprehend the company's standing with regard to liquidity,
profitability, and efficiency over the research period. to assess and evaluate various corporate financial
performance data. to evaluate the ratios over several time periods and compare them.
1. To research and evaluate the company's financial condition using ratio analysis.
2. To make recommendations for enhancing the financial success of an organisation.
3. To assess the company's profitability condition.
4. To determine the investment's return.
5. To evaluate the ratio of asset turnover.

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 6. To ascertain the company's solvency situation.
7. To make recommendations for improving the use of inventories

1.5 LIMITATIONS

1. The study has been based on 5 years of data only

2. The analysis will highlight any errors in the financial statements.
3. The lack of sufficient information constituted one of the research's major problems. The majority
of the data was kept private; as a result, it isn't considered part of company policy.
4. A significant restriction is a time. The entire study took place over the course of 60 days,
resulting in insufficient time for accurate interpretation and analysis.

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 CHAPTER 2
REVIEW OF LITERATURE

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2. REVIEW OF LITERATURE

The following paragraphs aim to provide a brief summary of the various field research:

Sneha Lata & Dr. Robin Anand (2017), From 2007 to 2017, examined the financial performance of
Mahindra & Mahindra Ltd. prior to and after their merger with the Korean business. Ratio analysis,
arithmetic mean, standard deviation, and t-test were among the methods they employed. Following the
merger, the firm's profit margin was reduced from 18% to 13%. The business value of Mahindra &
Mahindra Ltd has decreased as a result of a merger that was carried out to increase profits, and the
company is blaming previous mergers that may have occurred in more recent years for the fall.

Imran Khan (2016), He has utilized ratio analysis as a method to study and analyze Britannia's
financial performance from 2011–2012 to 2015–2016. During his research, he discovered that revenue,
operating income margin, net profit margin, as well as debt-equity ratio are all trending upward, but
return on assets and return on equity are trending downward. Additionally, he made certain
recommendations, such as raising the present asset and debt capital levels.

Dr. A Ramya &Dr. S Kavitha (2017), They looked at Maruti Suzuki Ltd's financial performance
between 2010 and 2015. The research makes use of profitability ratios and activity ratios. They
discovered that as we approach 2014–2015, the gross profit ratio, current ratio, asset turnover ratio, and
net profit turnover ratio all started to fall. They also arrive at the conclusion that the financial statement
calculations, which are made in accordance with intended management and policies, do not provide a
clear view of the company's performance.

Dr. M Ravichandran& M Venkat Subramanian (2016), From 2010 to 2015, they conducted research
on Force Motors, previously known as Bajaj Tempo. They employed comparative financial statement
analysis and ratio analysis. The business's financial performance is strong, with rising reserves and
surpluses and falling borrowings. They believe that it could be made even better by focusing on and
lowering its operational, administrative, and selling expenditures.

Anupa Jayawardhana (2016), researched Adidas' financial results from 2010 to 2014. She employs
techniques including trend analysis, financial ratio analysis, vertical analysis, and key ratio analysis. He

6
came to the conclusion that the company needed to cut operational costs and invest money in producing
assets.

Krishnaveni M & Vidhya R(2015), To address the standard current ratio of the car industry as linked
with factor and four stages such as engine components, lighting, gears, and accessories with the standard
norms, have chosen 87 firms out of 242 companies in the capital line database. Their analysis comes to
the conclusion that the current and liquidity ratio of the automotive industry is matched with four sectors
and a factor, but that other sectors need to boost their ability to pay back loans in order to improve their
financial aspects.

Suragi Pradeepta Ketal (2014) conducted a study to predict the direction of the automobile sector's
future. The study emphasized the 6 various experiments that were conducted over a 12-year period,
providing data to project figures for the next 3 years. Each experiment's graph was created using a
spreadsheet, after which a linear trend was made and enlarged to determine the results to come.

Anu B. (2015) attempted to investigate the correlation between market price per share, capital structure
indicators, and the link between debt equity and market price per share of chosen firms. According to
the study's findings, all three businesses are consistent with the claim that debt, equity, and MPS are
related.

Anant Lodha (2014) researched corporate financial statements for the years 2012 and 2013 for his
project. Swot analysis, ratio analysis, du-point analysis, cross-sectional analysis, and cash flow analysis
are some of the instruments he employs. Finally, he came to the conclusion that the firm relies on its
own resources instead of borrowing money, that its earnings are growing, and finally that its net income
is 4% more than its costs.

Rapheal Nisha (2013) makes an effort to assess the financial success of the Indian tyre industry. To
analyze the performance with regard to financial indicators, sales trends, export trends, production
trends, etc., the research was carried out from 2013 to 2012. The findings indicate that increasing worker
productivity, flexibility, and capital efficiency are crucial for industrial success.

Dr. Ashok Kumar Rath (2016), India ranks as one of the world's developing countries. By using
cutting-edge technology, globalization gives businesses plenty of opportunities to grow internationally

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and saturate India with high-quality, world-class products. The Indian steel industry is represented
internationally by Arcellor, Mittal, Tata Steel Ltd., and Steel Authority of India. The Kalinga Nagar
Industrial Complex at Duburi in the Jajpur district is one of the Greenfield Steel Projects currently being
implemented by Tata Steel as it increases its production capacity in India. With the use of numerous
financial statement analysis tools and methodologies, this project study aimed to offer the optimal
financing solution for the project's estimated cost of Rs. 21200 Cr. For the success of the current study,
secondary sources such as Tata Steel's annual reports from FY 2010-11 to FY 2014-15, news letters,
magazines, and journals were mostly used to gather data. Chain of Integrated Tasks is Involved in
Equipment Import Management. Additionally, documentation of the import of equipment is necessary
for efficient process flow so that the agencies involved understand their respective responsibilities.

Vijay Kumar V, Mavaluri Pradeep, and Boppana Nagarjuna (2006), According to the findings of
their study, financial ratios may be categorised into five fundamental groups: liquidity, activity, debt,
profitability, and market ratios. The ratios provide important information about a company's health,
financial situation, and profitability.

Brigham and Ehrhardt (2010), "Financial ratios have been created to help assess financial statements,"
they said. Financial ratios are employed as a tool for planning and management. Analysis of financial
ratios is used to assess an organization's performance.

Virambhai (2010) came to the conclusion that the organization/management should work to boost
output, reduce costs and operational expenditures, exercise adequate control over the liquidity position,
and reduce the use of gasoline, power, borrowing money, overheads, and interest load, among other
things.

Barne, (2015), claim that both academics and assessors frequently employ financial ratios to gain an
understanding of a company's financial performance. The company involves a wide range of interested
parties, including the owners, management, staff, clients, suppliers, rivals, regulatory authorities, and
academics, all of which have different perspectives on how to use financial statement analysis in
assessments. While academics have mostly been interested in developing models that utilize these ratios,
evaluators often use financial ratios to estimate the future success of businesses. There are several
unique areas of financial ratio study that may be distinguished.

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Sharma Nishi (2011), For the decade from 2001–2002 to 2010–11, they examined the financial
performance of the passenger and commercial vehicle segments of the automotive sector in terms of
four financial parameters: liquidity, profitability, leverage, and managerial efficiency study. The analysis
comes to the conclusion that while Tata Motors and Mahindra & Mahindra Ltd.'s profitability and
management effectiveness are good, their liquidity condition is not. Commercial vehicle segment's
liquidity condition is substantially stronger than that of the passenger car market.

Kumar Mohan M.S, Vasu. V. and Narayana T. (2016), To analyze the company's financial health,
the research made use of several ratios, mean, standard deviation, and Altman's Z score method.
According to the study, there is a favourable. The company's health is shown by the connection between
liquidity and profitability measures, with the exception of return on total assets and Z score value.

Ravichandran, M. & Subramanium M Venkata (2016), The primary goal of this study is to evaluate
Force Motors Limited's viability, stability, and profitability. Various financial instruments, such as
profitability ratios, solvency ratios, comparative statements & graphs, etc., can be used to assess the
company's operating status. This assessment reveals that the firm has sufficient resources to cover its
responsibilities and debts. By lowering administrative, selling, and operational costs, the company may
further enhance its financial performance.

Kumar Neeraj & Kaur Kuldip (2016), made an effort to investigate the link between industry size and
profitability in India. For the years 1998 to 2014, a cross-sectional and linear regression model was used
to analyze the association.The ratio of net profit to total sales turnover and the ratio of net income to net
assets plus working capital have both been used for profitability analysis, while for form size, total sales
turnover and net assets have both been employed as indicators. Although there is no correlation between
business size and profitability in cross-sectional data, the time series analysis revealed a favourable
association between the two.

Takeh Ata & Navaprabha Jubiliy (2015), Using four ratios—financial debt, total debt equity, total
asset debt, and interest coverage ratio—the author has created a conceptual model to show how capital
structure affects financial performance. Financial performance, on the other hand, is a dependent
variable whose value is determined by four ratios—return on assets, return on equity, operating profit
margin, and return on capital employed. With the aid of SPSS22, the researcher has chosen 13

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significant steel industries and implemented various statistical methods like standard deviation,
correlation matrix, anova, etc. for evaluating hypotheses.

Krishnaveni , M. & Vidya, R (2015), To explore the standard current ratio of the vehicle industry is
linked with tractor and four sectors, such as engine components, lighting, gears and ancillaries with
standard norms, the author has chosen 87 firms out of 242 companies in the capital line database. The
analysis comes to the conclusion that while the current and liquidity ratios of the tractor and the four
sectors equal those of the car industry, the other sectors must increase their ability to repay in order to
enhance their financial features.

Jothi, K. & Kalaivani, P. (2015), compared the results of Honda Motors and Toyota Motor, finding
that both businesses had acceptable short-term liquidity positions. In terms of cash ratio, Honda
Company has an advantage in good cash management techniques throughout the research period.
Although both businesses are becoming more profitable, Honda Motor Ltd. still has a considerably
bigger earning potential.

Huda Salhe Meften & Manish Roy Tirkey (2014), have researched Hindustan Petroleum Corporation
Ltd.'s financial analysis. The research is supported by secondary data. The business has a great gross
profit ratio, and its upward trajectory indicates that manufacturing costs are being used efficiently. The
net profit for the 2010–2011 fiscal year is exceptional and is eight times that of the prior year,
suggesting a decrease in operating expenditures and a significant amount of net sales accessible to the
company's shareholders.

Daniel A. Moses Joshunar (2013), Using financial data from the previous five years, the research was
undertaken to determine Tata Motors Ltd.'s financial strengths and weaknesses. Trend analysis and ratio
analysis are used to make observations on a company's financial situation. It is advised to boost the
firm's debt levels for improved performance even while the financial performance of the company is
good.

Rapheal Nisha (2013), The author makes an effort to assess the financial success of the Indian tyre
business. In order to analyze the performance with regard to financial indicators, sales trends, export
trends, production trends, etc., the research was carried out for the years 2003-04 through 2011-12. The

10
outcome implies that increasing worker productivity, adaptability, and capital efficiency is the key to
industrial success.

CHAPTER 3
INDUSTRY AND COMPANY PROFILE

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3. INDUSTRY AND COMPANY PROFILE

3.1 INDUSTRY PROFILE

One of the most significant industries in India is the iron and steel sector. India was the third-largest
producer of raw steel from 2014 to 2016. India overtook China to become the world's second-largest
producer in 2019 and the top producer of iron and steel. 9.7 million tonnes of raw iron and 82.68 million
tonnes of finished steel were produced by the sector. Iron ore is used mostly in India to make steel and
iron. The Indian Ministry of Steel oversees sector policy and is responsible for managing and organising
the growth and development of the iron and steel industry in both the public and private sectors,
formulating policy regarding the production, cost, distribution, import, as well as export of iron and
steel, Ferro alloys, and refractories, and developing input industries for the production of iron ore,
manganese ore, chrome ore, and refractories, among other things. Steel Authority of India (SAIL) is the
primary channel through which public sector organizations sell their steel. In 1991 and 1992,
respectively, the Indian steel industry lost its license and its government control.

The Indian Steel Industry supports the growth of the industrial, infrastructural, and GDP sectors of the
economy. Approximately 2.5% of the country's GDP comes from the steel sector, which directly and
indirectly employs 2.5 million people. Steel has a roughly 1.4 times economic impact on India, with a
6.8 times employment multiplier.

India is now the world's second-largest producer of steel. From January 2021 through December 2021,
the output of crude steel increased from 101.45 MT in 2017 to 118.13 MT (provisional). Production of
crude steel increased by 17.8% in 2021 compared to 2020. Domestic crude steel production capacity
increased from 137 MT per year in 2017 to 154 MTPA (provisional) until December 2021.

India's per capita consumption of steel increased from 46 kg in FY08 to around 75 kg in the current year
due to increased growth in infrastructure and increasing demand from industries including automobiles
construction, consumer products, and capital goods. Between January 2021 and December 2021,
consumption of finished steel as a whole increased by 18.8% over the CPLY to 106 MT. Additionally,
the production of total finished steel increased by 21.3% during the course of the year to 111 MT.

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The Indian steel industry still has a lot of room for demand-led growth, as evidenced by the fact that the
country's per capita consumption of steel, at 70 kg, is much lower than the global average of 227.5 kg,
despite the fact that total finished steel consumption increased significantly from 90.68 MT in 2017–18
to 106 MT in 2021. The urgent requirement is not only to increase local steel consumption, but also to
increase steel exports and generate demand for Indian steel overseas. India has emerged as one among
the world's steel centres for both steel production and consumption, accounting for 6% of worldwide
crude steel production and 5.7% of global crude steel consumption. The National Steel Policy 2017 aims
to reach a 300 MT crude steel capacity in the nation by 2030, in line with the Government of India's
National Mission of Atmanirbhar Bharat.

Metal consumption has been among of the main driving causes behind industrialization. Steel has long
held the top position among metals. Steel is both a raw material and an intermediate product, therefore
its production and consumption are commonly used as indicators of a nation's economic success.
Therefore, it would not be overstating the case to say that the steel industry is the backbone of every
economy and has always been at the forefront of industrial advancement. The steel industry in India is
divided into three groups: major producers, main producers, and secondary producers. Modern steel
mills are present in the Indian steel sector. It has always worked to upgrade older facilities to better
energy efficiency standards and to continuously modernize them.

3.2 COMPANY PROFILE

Tata Steel Limited, formerly known as Tata Iron and Steel Company Limited (TISCO), is a subsidiary
of the Tata Group with its headquarters in Mumbai, Maharashtra, India. With annual crude steel
deliveries of 27.5 million tonnes (in FY17), it is one of the top steel-producing businesses in the world.

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It is also the second-largest steel producer in India (based on domestic output), after SAIL, with an
annual capacity of 13 million tonnes.

Around 80,500 people are employed by Tata Steel, which has production facilities in 26 nations
including Australia, China, India, the Netherlands, Singapore, Thailand, and the United Kingdom.
Jamshedpur, Jharkhand, is home to its biggest factory. Tata Steel purchased the British steel
manufacturer Corus in 2007. It came in at 486 on the list of the 500 largest firms in the world according
to the 2014 Fortune Global 500. In 2013, it ranked as the ninth most valuable Indian brand, according to
Brand Finance.

Jamshedji Tata formed the Tata Iron and Steel Company, which Dorabji Tata added to the Jamshedji
Tata Group on August 26, 1907. It ran the biggest steel factory in the British Empire by 1939. In 1951,
the business started a significant modernization and growth programme. The programme was increased
to a 2 million metric tonnes per annum (MTPA) project later in 1958. By 1970, the firm employed over
40,000 people in Jamshedpur, with an additional 20,000 working in nearby coal mines. There were
failed efforts to nationalize the business in 1971 and 1979. It began its global strategy in 1990 and
founded Tata Inc. in New York. In 2005, the business changed its name from TISCO to Tata Steel.To
improve its portfolio in the Nordic area, Tata Steel stated on Thursday, February 12, 2015, that it has
acquired three strip product services centers from SSAB in Sweden, Finland, and Norway. However, the
business chose not to publish the transaction values.
Operations
The Tata Centre in Kolkata, West Bengal houses the marketing headquarters for Tata Steel, which has
its main office in Mumbai, Maharashtra, India. Around 50 nations are represented by it, and 26 of those
have manufacturing activities, including India, Malaysia, Vietnam, Thailand, the United Arab Emirates,
Ivory Coast, Mozambique, South Africa, Australia, the United Kingdom, the Netherlands, France, and
Canada. Customers of Tata Steel are largely found in the automotive, building, consumer products,

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engineering, packaging, lifting and digging, energy and power, aerospace, shipbuilding, rail, and
defence and security industries.

Vision
We want to set the standard for value development and corporate responsibility throughout the entire
steel sector.

Mission
Tata Steel works to enhance India's industrial foundation by efficiently using its workforce and
resources, in keeping with the vision and ideals of its founder Jamshedji Tata. Modern management
techniques and high productivity with cutting-edge technology are the methods envisioned to
accomplish this. Tata Steel understands that while morality and decency are crucial components of a
robust and secure business, profitability acts as the primary catalyst for economic activity. Overall, the
business strives to achieve the pinnacles of excellence in whatever it does in a fearless environment,
reinforcing its belief in democratic ideals.

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 CHAPTER 4
THEORITCAL BACKGROUND

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4. RATIO ANALYSIS

4.1 FINANCIAL ANALYSIS

The process of determining a company's financial strengths and weaknesses and making a connection
between the components of the balance sheet and profit and loss account is known as financial analysis.
Calculating and comparing ratios that are generated from the data in a company's financial statements is
known as financial ratio analysis. These measures' level and historical patterns can be used to draw
conclusions about a company's financial health, operational efficiency, and investment appeal. The
statements' information is used by
● Trade creditors should determine the company's liquidity situation in order to assess the firm's
capacity to satisfy its claims.
● Investors should be aware of the company's current and projected profitability as well as its
financial structure.
● Management, throughout the whole financial analysis. The management of the organisation is in
charge of ensuring solid financial standing.

4.2 RATIO ANALYSIS

The quantitative relationship between two items or variables is referred to as a "ratio" in this context.
This relationship can be exposed as
● Percentages
● Fractions
● Proportion of numbers
The systematic application of the ratio to the financial accounts is known as ratio analysis. so that a
company's strengths and shortcomings, past performance, and present financial situation may be
assessed. Ratio illustrates a quantitative relationship and aids in developing a quantitative evaluation.

4.3 STEPS IN RATIO ANALYSIS

● The first step in the financial analysis process is to choose from the statements the data that is
pertinent to the choice being considered and compute the necessary ratios.
● To contrast the estimated ratios with historical ratios for the same business or with ratios for the
industry. It makes it easier to determine if a corporation has succeeded or failed.

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 ● The third phase is interpretation, inference drawing, and report writing. Following comparison,
conclusions are generated in the form of reports or suggested courses of action.

4.4 BASIS OR STANDARDS OF COMPARISON

Ratios are relative measurements that show how two variables are related. They make it possible for
analysts to make judgements about financial operations. When ratios are used as a tool for financial
analysis, related data are compared. Ratio analysis is built on this principle. Ratio analysis has four
different sorts of foundations.
● historical ratios derived from the company's prior financial statements
● Comparative analysis of some of the most successful and forward-thinking rival companies at
the same period.
● the industries to which each business belongs, according on industry ratios
● Future ratios that have been produced using projected or pro forma financial accounts are called
projected ratios.

4.5 NATURE OF RATIO ANALYSIS

A approach for analyzing and interpreting financial statements is ratio analysis. It is the process of
creating and analyzing different ratios to assist in making choices. It is only a tool for figuring out a
company's financial strengths and shortcomings. There are many ratios that can be generated using the
data in the financial statements, but the analyst just has to choose the right data and create a small
number of suitable ratios.
● The four steps of the ratio analysis are as follows:
● Depending on the goal of the study, select pertinent information from the financial statements
● Using the aforementioned data, calculate the relevant ratios.
● Comparison of the calculated ratios with the ratios of the same business in the past, the ratios
produced from predicted financial statements, the ratios of some other companies, the ratios of
the industry to which the firm belongs, or the ratios developed from the calculated ratios.

4.6 INTERPRETATION OF THE RATIOS

An essential element is how ratios are interpreted. When understanding them, it's important to keep in
mind the inherent restrictions of ratio analysis. When attempting to analyse ratios, it's also important to
consider the effects of variables like shifting pricing levels, shifting accounting principles, window
dressing, etc. The following approaches can be used to interpret ratios.
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 ● SingleSingle absolute ratio
● Group of ratios
● Historical comparison
● Projected ratios
● Inter-firm comparison

4.7 GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS

Although calculating ratios is not a tough undertaking, using them effectively is. While interpreting
different ratios, the following principles or considerations should be kept in mind:
● Accuracy of financial statements
● Objective or purpose of analysis
● Selection of ratios
● Use of standards
● Caliber of the analysis

4.8 IMPORTANCE OF RATIOS ANALYSIS

● Aid to measure general efficiency

● Aid to measure financial solvency
● Aid in forecasting and planning
● Facilitate decision making
● Aid to corrective action
● Aid in intra-firm comparison

4.9 LIMITATIONS OF RATIO ANALYSIS

● Differences in definitions
● Limitations of accounting records
● Lack of proper standards
● No allowances for price level changes
● Changes in accounting procedures
● Quantitative factors are ignored

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4.10 CONCEPTUAL REVIEW

A complete account of a company's operations throughout the previous year is contained in its annual
report. Shareholders and other interested parties can learn about the company's operations and financial
performance via annual reports. They could qualify as "grey literature." Grey literature refers to a variety
of printed and electronic documents of high enough quality to be collected and preserved in institutional
repositories or library holdings. It is produced at all levels of government, academia, business, and
industry. The majority of jurisdictions demand that businesses produce and release annual reports, and
many demand that the annual reports be filed at the stock market for firms that are listed there. These
corporations are also required to submit reports at more regular intervals.

An important method of analysing financial performance is accounting ratio analysis. It is the most
popular financial performance approach. The ratio was the first to be designed for financial statement
analysis and interpretation.

4.1.1 Liquidity Ratio

The ability of a company to pay its current liabilities from its current assets is referred to as liquidity.
The liquidity situation or short-term financial status of a company is measured using liquidity ratios.
These ratios are used to evaluate a company's capacity to pay off short-term debt. Current ratios, fast
ratios, and ultra quick ratios are significant liquidity ratios.
a) Current Ratio
One of the oldest financial measures is the current ratio. In 1891, it was first applied.
The ratio of current assets to current liabilities is known as the current ratio. The correlation between
total current obligations and total current assets is displayed. Working capital ratio and banker's ratio are
other names for the current ratio. A current ratio of 2:1 is typically regarded as excellent or optimum.

The formula is as follows.

Current asset
Current ratio =
Current liabilities
b) Quick Ratio
The liquidity asset to current liability is known as the quick ratio. It serves as a gauge of a company's
capacity to act quickly. Acid Test Ratio is another name for it. The ratio is determined to exclude all
potentially liquid components from present assets, thus its name. 1:1 is regarded as the optimal ratio.
This is how it is calculated:

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 Quick asset
Quick ratio =
Current liability
c) Super Quick Ratio
The link between an absolutely liquid asset and a current liability is shown by the ratio. Additionally
known as absolute liquid ratio. Cash on hand, cash in a bank, and marketable securities are all
considered absolute liquid assets. At this ratio, 0.5:1 would be considered the most advantageous and
ideal value. The calculation looks like this:

Absolute liquid asset

Super quick ratio =
Current liability

4.1.2 Solvency ratio

The word "solvency" describes a company's capacity to meet its long-term and short-term obligations to
third parties. Solvency ratios are used to evaluate a company's long-term financial condition. In other
words, these ratios are used to evaluate a company's capital structure. Debt equity ratios, proprietary
ratios, leverage ratios, etc. are all significant solvency ratios.
a) Debt Equity Ratio
Debt equity ratio is most commonly used ratio to test the solvency of a firm. This ratio indicates the
relative proportion of debt and equity in financing the asset of the firm. In short it expresses the
relationship between the external equity and internal equity of the company. Sometimes it’s referred as
the security ratio. The formulae used is
Debt
Debt Equity Ratio =
Equity

b) Proprietary ratio
The proprietary ratio establishes the link between shareholders' funds and total assets. The ratio
demonstrates how much money shareholders have invested in the company's overall assets. Its
alternative name is net worth ratio. Typically, a 0.5:1 ratio is regarded as optimum.

Shareholders fund
Proprietary Ratio =
Total asset

c) Leverage ratio

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The link between a company's total asset and liabilities is expressed by this ratio. It gauges a company's
financial stability. The solvency ratio, or the ratio of total assets to total debt, is another name for this
ratio. A higher solvency ratio denotes a good financial situation for the company. A lower solvency ratio
reveals a negative financial state for the company. The following formula is used to compute the
solvency ratio
Total asset
Leverage ratio =
Total debt

4.1.3 Activity ratio

Activity ratios demonstrate the efficiency with which a company utilizes its resources or assets. This
ratio shows how well assets are managed. In other words, this ratio shows how quickly the company's
resources are used up or transformed into cash. Higher turnover rates indicate better resource utilization,
whereas lower turnover ratios indicate worse resource usage. Inventory turnover ratios, working capital
turnover ratios, and fixed asset turnover ratios are significant turnover ratios.
a) Inventory turnover ratio
This ratio shows the relationship between the costs of goods sold and average inventory or stock. It is
also called the merchandise turnover ratio. It is obtained by dividing the cost of goods sold by the
average stock of the company. It indicates a number of times stock is turned over or converted into cash.
Generally, a ratio of 8 times is considered as satisfactory. Stock turnover ratio is computed by the
following formula
Cost of goods sold
Stock turnover ratio =
Inventory

b) Working capital turnover ratio

The ratio of working capital offered to current assets will alter when a company's sales fluctuate. This
indicates that working capital and sales are connected. Working capital turnover ratio is the ratio
between sales and working capital. This ratio demonstrates how frequently working capital is switched
out to produce revenue. The typical ratio of working capital turnover is 7 or 8. It is calculated as follows
Net sales
Working capital turnover ratio =
Workingcapital

c) Fixed asset turnover ratio

The purchase of a fixed asset for the company is explained by the fixed asset. It is impossible to sell and
make money without fixed assets. These sales are dependent on how fixed assets are used in the
22
company to determine whether or not fixed assets are used effectively. The connection between net sales
and the fixed asset ratio is established through fixed asset turnover. Better fixed asset utilization is
indicated by higher ratios, whereas lower fixed asset utilization is indicated by lower ratios. It is
computed as follows
Net sales
Fixed asset turnover ratio =
¿ asset

4.1.4 Profitability ratio

Gaining profit is a commercial enterprise's main goal. Profit is the company's or commercial
enterprise's driving force. For a company to endure and expand throughout time, it must be
profitable. Profit, in the management's eyes, is a gauge of corporate control and efficiency. The
ability of a firm's income is referred to as profitability. The profitability ratio makes it simple to
determine profitability. The gross profit ratio, net profit ratio, operational profit ratio, return on
investment, and return on shareholders' equity are crucial profitability measures.
a) Gross profit ratio
It is the most typical kind of sales-based profitability ratio. Gross profit and net sales are the two
fundamental parts of the gross profit ratio. The primary goals of the gross profit ratio are to
gauge how well a company produces its goods. 20% to 25% is the best or typical range for the
gross profit ratio. It is calculated as follows
Gross profit
Gross profit ratio = ×100
Net sales
b) Operating profit ratio
Operating profit discusses how operating profit and net sales are related. Profit from regular
business operations is referred to as operating profit. It is the profit before non-operating costs
and non-operating revenues have been taken into account. It evaluates a business's operational
effectiveness. Operating profit can be ascertained as follows
Operating profit
Operating profit ratio = ×100
Net sales
c) Net profit ratio
The net profit ratio measures the difference between a company's net sales and net profit.
Overall profitability is measured. The net profit ratio reveals both the profitability and efficiency

23
of the company. It establishes the owner of the business's return. The ratio shows how much of
the sales remain after all company expenditures have been paid.A net profit ratio of 5% to 10%
is ideal. It is calculated as follows
Net profit
Net profit ratio = ×100
Net sales
d) Return on investment
It is an investment-based profitability ratio. A company naturally expects a return on its
investment when it makes a financial commitment to a company. The company is interested in
learning how much profit it makes from its investment. It demonstrates the connection between
revenue or return and investment. The accounting 9 ratio of return is another name for it. 15% is
the typical return on investment ratio. It is calculated as follows
Profit before interest ∧tax
ROI = ×100
Capital employed
e) Return on shareholders fund
The ratio is either shareholders' equity or net worth to net profit. From the perspective of the
shareholders, it calculates profitability. It is an investment-based profitability ratio. The mother
of all ratios is another name for this ratio. Because it gauges the return on the capital invested by
the owner, this ratio is arguably the most significant ratio. It is computed as below
Net profit after interest ∧tax
Return on shareholders fund = ×100
Shareholders fund

24
 CHAPTER 5
RESEARCH METHODOLOGY

25
5.1 RESEARCH METHODOLOGY

Throughout the process, secondary sources are used to get the information. The performance evaluation
was calculated using such data, and conclusions were drawn from it.
1. The majority of computations are based on the financial statements that the firm has published.
2. Some of the material about theoretical topics was gathered through the use of standard books and
articles that were recommended.
3. The method of watching the work being done in the financial department is used to evaluate the
success of the organization.

5.2 Research Design

The research is designed in such a way to concentrate mainly on data collected through secondary
mode. 1.5.2 Sources & Collection of Data:

For the purpose of this study only secondary data have been used to a large extent.
Source of Data
Primary data is the data that are collected for the first time and are original in nature. The primary data
are collected mainly based on personnel discussions with executives in TATA STEEL LTD. Secondary
data on the other hand are those that have already been collected and analyzed by someone else.
Secondary data are collected from published accounts and annual reports of TATA STEEL LTD. The
main source of data of the study was the annual reports of TATA STEEL LTD, internet sources, books
& articles

26
 CHAPTER 6
DATA ANALYSIS AND INTERPRETATION

27
6. DATA ANALYSIS

Data analysis simply refers to examining all of the study's data. The study's data collection includes
financial data. The analysis is thus also known as financial analysis. Financial analysis is the process of
simplifying the financial information seen in financial statements. The process of evaluating the
profitability and financial stability of the organization involves examining the data in the financial
statement. Analysis and interpretation are key components of financial analysis. The definition of
interpretation is to explain something's significance. Interpretation in the context of financial analysis
refers to elucidating the significance of the data. Ratio analysis is used in this research to analyze
financial data. An essential method of financial statement analysis is ratio analysis. It is the financial
analysis method that is most frequently employed. Perhaps the first financial instrument created to
examine and evaluate financial data analysis was ratio analysis. The numerical link between two values
is displayed using ratio analysis. The investigation had chosen Tata Steel Ltd. From Tata Steel Ltd.'s
website, secondary data is collected. The necessary information had been gathered from the company's
annual reports for the last five years, from 2017–18 to 2021–22. The sample was chosen using a simple
random sampling method. Ratio analysis was used for the analysis in this study. For the study, the
liquidity ratio, solvency ratio, activity ratio, and profitability ratio had all been looked at. The current
ratio, rapid ratio, and super quick ratio are all types of liquidity ratios. Debt equity ratio, proprietary
ratio, and leverage ratio are all parts of the solvency ratio. The inventory turnover ratio, working capital
turnover ratio, and fixed asset turnover ratio are all included in the activity ratio. Gross profit ratio,
operational profit ratio, net profit ratio, return on investment, and return on shareholders' equity are all
included in the profitability ratio.

28
6.1 Liquidity Ratios

6.1.1 Current Ratio

Current asset
Current ratio =
Current liabilities

Table 6.1

Year Current asset Current liability Ratio

2017-18 34,643.91 25607.34 1.35:1

2018-19 17035.58 25593.65 0.67:1

2019-20 20009.19 30871.30 0.65:1

2020-21 29274.40 30067.60 0.97:1

2021-22 31289.57 53664.83 0.58:1

(Source: compiled from annual report)

INTERPRETATION
Generally current ratio of 2:1 is considered as standard. From table 5.1 it is clear that it is the company is
fails to attain the standard ratio. Current ratio from 2017-18 to 2021-22 is fluctuating year by year.
Figure 6.1

29
6.1.2 Quick Ratio

Quick asset
Quick ratio =
Current liability
Quick asset = current asset-inventory
Table 6.2

Year Quick asset Current liability Ratio

2017-18 23620.5 25607.34 0.92:1

2018-19 5780.24 25593.65 0.23:1

2019-20 9292.53 30871.30 0.30:1

2020-21 16416.89 30067.60 0.55:1

2021-22 11346.63 53664.83 0.21:1

(Source: compiled from annual report)

INTERPRETATION
Generally Quick ratio of 1:1 is considered as satisfactory. From Table 5.2 it is clear that quick ratio is
less than 1 which means financial position of the company is unsound. So the company needs to increase
the liquid asset to attain standard ratio.
Figure 6.2

30
6.1.3 Super Quick Ratio

Absolute liquid asset

Super quick ratio =
Current liabilty
Super quick asset = cash + short term investment
Table 6.3

Year Super Quick asset Current liability Ratio

2017-18 19337.11 25607.34 0.76:1

2018-19 1195.58 25593.65 0.04:1

2019-20 4462.03 30871.30 0.15:1

2020-21 9493.70 30067.60 0.31:1

2021-22 2951.40 53664.83 0.05:1

(Source: compiled from annual report)

INTERPRETATION
Generally super quick ratio of 0.5:1 is considered as ideal. From table 5.3 it is clear that except in the
year 2021-22, in the rest year the company is not met the ideal ratio. The Company does not keep much
of super quick asset to pay off its super quick liabilities.

31
Figure 6.3

6.2 Leverage Ratios

6.2.1 Debt Equity Ratio

Debt
Debt equity Ratio =
Equity
Table 6.4

Year Debt Equity Ratio

2017-18 80594.9 41457.55 1.94

2018-19 82350.37 35544.31 2.32

2019-20 88674.08 58595.60 1.51

2020-21 91144.81 66650.08 1.37

2021-22 113289.95 71301.30 1.58

(Source: compiled from annual report)

INTERPRETATION

32
Generally debt equity ratio of 1:1 is considered standard. From the table 5.4 it is clear that company is
above standard shows that company tends to use more borrowed fund than owners fund.
Figure 6.4

6.2.2 Proprietary Ratio

Shareholders fund
Proprietary ratio =
Total asset
Table 6.5

Year Shareholders Fund Total asset Ratio

2017-18 41457.55 177511.44 0.23:1

2018-19 35544.31 173333.24 0.20:1

2019-20 58595.60 209757.94 0.28:1

2020-21 66650.08 233582.39 0.29:1

2021-22 71301.30 250419.45 0.28:1

(Source: compiled from annual report)

INTERPRETATION

33
Generally proprietary ratio of 0.5:1 or above (or 50% or more) is considered as ideal. A lower ratio
indicates that the firm is highly dependent on creditors for its working capital. Therefore lower
proprietary ratio indicates an unsound financial position
Figure 6.5

6.2.3 Solvency ratio

Total asset
Solvency ratio =
Total debt
Table 6.6

Year Total asset Total debt Ratio

2017-18 177511.44 80594.9 2.20

2018-19 173333.24 82350.37 2.10

2019-20 209757.94 88674.08 2.36

2020-21 233582.39 91144.81 2.56

2021-22 250419.45 113289.95 2.21

(Source: compiled from annual report)

34
INTERPRETATION
Generally, solvency ratio of 1:1 is considered as ideal.it is clear that leverage ratio is above standard this
means higher degree of solvency. That indicate company is solvent because assets are sufficiently more
than liability of company.
Figure 6.6

6.3 Activity Ratios

6.3.1 Stock Turnover Ratio

Cost of goods sold Net sales

Stock turnover ratio =
Inventory
or Inventory
Table 6.7

35
 Year Net sales Inventory Ratio

2017-18 58,550.68 11,023.41 5.31

2018-19 68,923.15 11,255.34 6.12

2019-20 58,815.57 10,716.66 5.48

2020-21 82,828.16 12,857.51 6.44

2021-22 127,681.40 19,942.94 6.40

(Source: compiled from annual report)

INTERPRETATION
Generally stock turnover ratio of 8 times is considered as ideal. Table 5.7 shows that stock turnover ratio
is lower than the standard in every year. Which means companies inventory management or inventory
policy is not better.
Figure 6.7

6.3.2 Working Capital Turnover Ratio

Net sales
Working capital turnover ratio =
Workingcapital
Working capital = current asset-current liability
Table 6.8
36
 Year Net sales Working capital Ratio

2017-18 58,550.68 9036.57 6.47

2018-19 68,923.15 -8558.07 -8.05

2019-20 58,815.57 -10862.11 -5.41

2020-21 82,828.16 -793.2 -104.42

2021-22 127,681.40 -22375.26 -5.70

(Source: compiled from annual report)

INTERPRETATION
Generally, a working capital turnover ratio is 7 or 8 times is considered as ideal. From table 5.8 it is
clear that working capital turnover ratio shows a negative sign. Which means it shows negative figures
in each year expect from 2018-19 to 2021-22. It indicates under trading and working capital is not
utilized in generating sales.
Figure 6.8

6.3.3 Fixed Asset Turnover Ratio

Net sales
Fixed asset turnover ratio =
¿ asset
Table 6.9
37
 Year Net sales Fixed asset Ratio

2017-18 58,550.68 77,402.35 0.75

2018-19 68,923.15 77,018.31 0.89

2019-20 58,815.57 79,480.43 0.74

2020-21 82,828.16 108,051.56 0.77

2021-22 127,681.40 108,832.39 1.17

(Source: compiled from annual report)

INTERPRETATION
Generally Fixed Asset turnover ratio of 4 times is considered as satisfactory. From the table 5.9 it is
clear that fixed asset turnover ratio is below standard.
Figure 6.9

38
6.4 Profitability Ratios

6.4.1 Operating Profit Ratio

Operating profit
Operating profit ratio = ×100
Net sales
Table 6.10

Year Operating profit Net sales Ratio

2017-18 4,169.55 58,550.68 7

2018-19 10,533.19 68,923.15 15

2019-20 6,743.80 58,815.57 11

2020-21 17,077.97 82,828.16 20

2021-22 33,011.18 127,681.40 25

(Source: compiled from annual report)

INTERPRETATION
Generally Standard form of operating profit ratio is 15 %. High operating profit ratio indicates profits
generated from operations are better compared with the total revenue generated from sales of the
company.
Figure 6.10

39
6.4.2 Net profit ratio

Net profit
Net profit ratio = ×100
Net sales
Table 6.11

Year Net profit Net sales Ratio

2017-18 4,169.55 58,550.68 7

2018-19 10,533.19 68,923.15 15

2019-20 6,743.80 58,815.57 11

2020-21 17,077.97 82,828.16 20

2021-22 33,011.18 127,681.40 25

(Source: compiled from annual report)

INTERPRETATION
Generally Ideal form of net profit ratio is 10%. From table 5.11 shows that the company meet standard
ratio in all the except in the year 2017-18 where the company is underpricing. Also shows higher
profitability and higher return to the shareholders of the company.net profit ratio from 2019-120 is
increasing year by year.

40
Figure 6.11

6.4.3 Return on investment

Profit before interest ∧tax

Return on investment = ×100
Capital employed
Capital employed = fixed asset + current asset – current liability
Table 6.12

Year PBIT Capital employed Ratio

2017-18 6,638.25 86438.92 7.68

2018-19 16,227.25 68460.24 23.70

2019-20 6,610.98 68618.32 9.63

2020-21 18,609.84 107258.36 17.35

2021-22 44,090.65 86457.13 50.10

(Source: compiled from annual report)

INTERPRETATION
Generally, return on investment of 15% is considered as standard. The figure shows that firm is not
having sufficient return on capital employed. it shows that there is inefficient use of capital employed.
41
Figure 6.12

6.4.4 Return on Shareholders Fund

Net profit after interest ∧tax

Return on shareholders fund = ×100
Shareholders fund
Table 6.13

Year Net profit after Shareholders fund Ratio

interest and tax

2017-18 4,169.55 61,514.82 6.78

2018-19 10,533.19 70,454.71 14.95

2019-20 6,743.80 74,563.12 9.04

2020-21 17,077.97 94,406.34 18.08

2021-22 33,011.18 125,433.76 26.31

(Source: compiled from annual report)

INTERPRETATION

42
Generally ideal form of return on shareholders’ fund is 15%. From table 5.13 it is clear that company’s
return on shareholders fund in all the years is above the standard ratio except in the year 2017-18 and
2019-20,.it shows that return on shareholders fund is satisfactory.
Figure 6.13

43
 CHAPTER 7
FINDINGS, SUGGESTIONS AND CONCLUSIONS

44
7. FINDING, SUGGESTIONS AND CONCLUSION

7.1 FINDINGS

● Current ratio is below standard and fluctuating year by year.

● Quick ratio is also below standard hence the firm will face difficulties in pay off its liabilities in
correct time
● Super quick ratio is also below standard so short term liquidity position very poor
● Debt equity ratio is above the standard, it indicate that the extent to which company depends on
its outsiders for its existence.
● Proprietary ratio is below standard.
● Solvency ratio shows this company is strong because assets are sufficiently more than liabilities.
● Stock turnover ratio is below standard hence it indicates the company’s stock cannot converted
in to cash very quickly
● Working capital turnover ratio is fluctuating and it indicates that working capital is not
effectively utilized in generating sales.
● Fixed asset turnover ratio is below standard which means worse utilization of fixed asset in
generating sales.
● Operating profit ratio shows better operational efficiency of the company.
● Net profit ratio shows decreasing trend means decreasing profitability.
● Return on investment is below the standard that means there is inefficient use of capital
employed.
● Return on shareholders fund is not satisfactory.

7.2 SUGGESTIONS

● It will be better if company uses its current assets effectively to improve liquidity ratio and
liquidity position.
● It is advisable to increase quick assets to maintain a standard ratio.
● Company must try to use working capital effectively for generating sales.
● Company has to increase net sales for increasing profitability of the entity and higher
profitability will attract shareholders.
● they should give more importance while they are investing money in different securities.

45
7.3 CONCLUSION

The study mainly concentrates on the analysis of financial performance and soundness of the firm. The
study is conducted to analyses the liquidity solvency and profitability of the firm. From the study of
financial performance it can be concluded that Tata steel ltd has satisfactory position in its operating
profit but the firm needs to improve its liquidity and solvency. If the firm continues to perform with
more efficiency and determination it can achieve greater success in near future. Thus the working capital
concepts are more important tothemanagement in order to maintain the current assets and current
liabilities. The companyhasfavorable net assets value, sales and income of the company also is in
increasing trend. Thecompany has favorable Earnings before interests and taxes, cash flow. Earnings per
sharevalue are increasing every year. Price per sales ratio and Price per Earnings ratioaregradually
decreasing. The lower the PSR value is the better.

46
BIBLIOGRAPHY

47
BIBLIOGRAPHY

Books:
● VINOD, A. (2019). ACCOUNTING FOR MANAGEMENT (9th ed., pp.47-136). CALICUT:
CALICUT UNIVERSITY.
● Jain, S. (2008). COST AND MANAGEMENT ACCOUNTING. Ludhina: kalyani Publishers.

Journals:
● Lata, S., & Anand, D. (2017). In International Conference on Recent Innovation in Science,
Agricultural, Engineering and Management ,Punjab.
● A Study on Financial Analysis of Maruti Suzuki India Limited Company.(2017).IOSR Journal of
Business and Management, 19(7), 93- 101.
● Khan, I. (2016). Britannia analysis of financial performance. Retrieved from
https://www.slideshare.net/ImranKhan994/britannia-analysis-offinancial-performance
● Jayawardhana, A. (2016). Financial Performance Analysis of Adidas AG. European Journal of
Business And Management, 8(11).
● Subramanian,M (2016). A study on Financial Performance Analysis of Force Motors Limited.
International Journal For innovative Research In Science And Technology
● Krishna M &Vidhya R. (2015),”A study on liquidity Analysis of Indian Automobile
industry,Asian Research Journal of business Management,(2),pp.24- 30
● Anu.B (2015),”A study on Capital structure of selected automobile industries in India,” EPRA
International journal of economic and Business review,3(5),pp.145-150
● Ketal(2014),”A study to forecast the future trends of automobile industry,” IOSR journal of
business and Management,16(6),pp.83-89
● Anant Lodha (2014). ITC Financial Report. Retrieved from
https://www.slideshare.net/anantlodha/itc-financial-report
● Rapheal ,Nisha(2013),”An overview of the financial performance of Indian tire industry-
comparison among leading tire companies,” Innovative journal of Business and Management
Websites:
● www.moneycontrol.com
● www.tatasteel.com
● www.indiasteelexpo.in

48
● www.wikipedia.com

49
APPENDIX

50
Tata Steel Previous Years »
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 127,681.40 82,828.16 58,815.57 68,923.36 59,453.23
Less: Excise/Sevice Tax/Other Levies 0.00 0.00 0.00 0.21 902.55
Revenue From Operations [Net] 127,681.40 82,828.16 58,815.57 68,923.15 58,550.68
Other Operating Revenues 1,339.95 1,304.76 1,620.40 1,687.56 1,066.14
Total Operating Revenues 129,021.35 84,132.92 60,435.97 70,610.71 59,616.82
Other Income 1,452.02 755.11 404.12 2,405.08 763.66
Total Revenue 130,473.37 84,888.03 60,840.09 73,015.79 60,380.48
EXPENSES
Cost Of Materials Consumed 35,256.98 20,757.04 17,407.03 19,840.29 16,877.63
Purchase Of Stock-In Trade 4,089.03 1,688.84 1,563.10 1,807.85 647.21
Changes In Inventories Of FG,WIP And Stock-In Trade -1,820.87 2,176.56 -564.40 -554.33 545.36
Employee Benefit Expenses 6,365.80 5,741.94 5,036.62 5,131.06 4,828.85
Finance Costs 2,792.08 4,541.02 3,031.01 2,823.58 2,810.62
Depreciation And Amortisation Expenses 5,463.69 5,469.26 3,920.12 3,802.96 3,727.46
Other Expenses 36,458.65 27,966.07 23,803.18 24,622.60 21,275.47
Less: Amounts Transfer To Capital Accounts 2,458.09 1,321.24 1,671.13 799.70 336.66
Total Expenses 86,147.27 67,019.49 52,525.53 56,674.31 50,375.94
Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional, ExtraOrdinary Items

44,326.10 17,868.54 8,314.56 16,341.48 10,004.54
And Tax
Exceptional Items -235.45 741.30 -1,703.58 -114.23 -3,366.29
Profit/Loss Before Tax 44,090.65 18,609.84 6,610.98 16,227.25 6,638.25
Tax Expenses-Continued Operations
Current Tax 11,611.94 -1,329.78 1,787.95 6,297.11 1,586.78
Deferred Tax -532.47 2,861.65 -1,920.77 -603.05 881.92
Total Tax Expenses 11,079.47 1,531.87 -132.82 5,694.06 2,468.70
Profit/Loss After Tax And Before ExtraOrdinary
33,011.18 17,077.97 6,743.80 10,533.19 4,169.55
Items
Profit/Loss From Continuing Operations 33,011.18 17,077.97 6,743.80 10,533.19 4,169.55
Profit/Loss For The Period 33,011.18 17,077.97 6,743.80 10,533.19 4,169.55
Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

12 mths 12 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 270.33 145.00 57.11 90.41 38.57

51
Diluted EPS (Rs.) 270.13 144.99 57.11 90.40 38.56
VALUE OF IMPORTED AND INDIGENIOUS RAW
MATERIALS
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 3,007.08 1,145.92 1,489.67 1,145.92 1,237.35
Tax On Dividend 0.00 0.00 297.71 224.86 95.71
Equity Dividend Rate (%) 510.00 250.00 100.00 130.00 100.00

Source : Dion Global Solutions Limited

Tata Steel Previous Years »

Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 242,326.87 154,719.28 146,106.00 154,691.84 131,741.49
Less: Excise/Sevice Tax/Other Levies 0.00 0.00 0.00 0.21 860.62
Revenue From Operations [Net] 242,326.87 154,719.28 146,106.00 154,691.63 130,880.87
Other Operating Revenues 1,632.30 1,758.12 2,865.71 2,977.15 1,274.88
Total Operating Revenues 243,959.17 156,477.40 148,971.71 157,668.78 132,155.75
Other Income 784.89 895.60 1,821.99 1,420.58 909.45
Total Revenue 244,744.06 157,373.00 150,793.70 159,089.36 133,065.20
EXPENSES
Cost Of Materials Consumed 75,763.70 45,292.49 53,592.83 54,309.07 41,205.43
Purchase Of Stock-In Trade 15,312.91 9,808.32 10,504.20 6,567.98 11,002.82
Changes In Inventories Of FG,WIP And Stock-In
-7,597.87 1,516.77 -490.05 -96.71 -43.68
Trade
Employee Benefit Expenses 23,264.10 19,908.81 19,152.23 18,758.87 17,606.19
Finance Costs 5,462.20 7,606.71 7,580.72 7,660.10 5,501.79
Depreciation And Amortisation Expenses 9,100.87 9,233.64 8,707.67 7,341.83 5,961.66
Other Expenses 76,616.28 51,212.44 50,702.93 50,410.51 41,495.32
Less: Amounts Transfer To Capital Accounts 2,889.90 1,765.69 2,318.00 1,664.28 1,000.86
Total Expenses 195,032.29 142,813.49 147,432.53 143,287.37 121,728.67
Profit/Loss Before Exceptional, ExtraOrdinary
49,711.77 14,559.51 3,361.17 15,801.99 11,336.53
Items And Tax
Exceptional Items -134.06 -1,043.16 -4,929.58 -120.97 9,599.12
Profit/Loss Before Tax 49,577.71 13,516.35 -1,568.41 15,681.02 20,935.65
Tax Expenses-Continued Operations
Current Tax 7,049.88 4,288.27 2,113.63 6,728.14 2,002.77
Deferred Tax 1,427.67 1,365.63 -4,666.53 -9.71 1,402.62
Total Tax Expenses 8,477.55 5,653.90 -2,552.90 6,718.43 3,405.39
Profit/Loss After Tax And Before
41,100.16 7,862.45 984.49 8,962.59 17,530.26
ExtraOrdinary Items

52
Profit/Loss From Continuing Operations 41,100.16 7,862.45 984.49 8,962.59 17,530.26
Profit Loss From Discontinuing Operations 0.00 0.00 0.00 -88.96 5.15
Total Tax Expenses Discontinuing Operations 0.00 0.00 0.00 0.00 -53.30
Net Profit Loss From Discontinuing Operations 0.00 0.00 0.00 -88.96 58.45
Profit/Loss For The Period 41,100.16 7,862.45 984.49 8,873.63 17,588.71
Minority Interest -1,595.39 -699.57 384.08 1,120.00 -4,328.48
Share Of Profit/Loss Of Associates 649.16 327.34 187.97 224.70 174.10
Consolidated Profit/Loss After MI And
40,153.93 7,490.22 1,556.54 10,218.33 13,434.33
Associates
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 332.00 64.00 12.00 88.00 128.00
Diluted EPS (Rs.) 332.00 64.00 12.00 88.00 128.00
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 3,004.16 1,144.75 1,488.13 1,144.76 1,236.18
Tax On Dividend 0.00 0.00 297.40 224.61 95.47

Source : Dion Global Solutions Limited

Tata Steel Previous Years »

Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------

Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 1,221.21 1,197.61 1,144.95 1,144.94 1,144.95

Total Share Capital 1,221.21 1,197.61 1,144.95 1,144.94 1,144.95

Reserves and Surplus 113,221.83 72,262.38 70,156.35 65,505.14 57,450.65

Total Reserves and Surplus 113,221.83 72,262.38 70,156.35 65,505.14 57,450.65

Total Shareholders Funds 114,443.04 73,459.99 71,301.30 66,650.08 58,595.60

Equity Share Application Money 0.00 3.78 0.00 0.00 0.02

Hybrid/Debt/Other Securities 0.00 775.00 2,275.00 2,275.00 2,275.00

Minority Interest 2,655.42 3,269.68 2,586.60 2,364.46 936.52

NON-CURRENT LIABILITIES

Long Term Borrowings 44,764.07 65,698.01 94,104.97 80,342.73 72,789.10

Deferred Tax Liabilities [Net] 12,325.78 9,241.42 9,261.38 12,459.89 10,569.88

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Other Long Term Liabilities 15,843.31 17,480.28 4,994.22 4,409.89 4,592.17

Long Term Provisions 4,825.98 4,691.92 4,235.07 4,046.21 4,338.24

Total Non-Current Liabilities 77,759.14 97,111.63 112,595.64 101,258.72 92,289.39

CURRENT LIABILITIES

Short Term Borrowings 24,064.61 14,968.97 19,184.48 10,802.08 15,884.98

Trade Payables 36,764.87 25,967.49 21,380.85 21,716.96 20,413.81

Other Current Liabilities 26,990.03 25,205.35 19,431.91 27,266.37 18,092.98

Short Term Provisions 2,768.49 4,725.32 1,663.67 1,248.72 1,269.64

Total Current Liabilities 90,588.00 70,867.13 61,660.91 61,034.13 55,661.41

Total Capital And Liabilities 285,445.60 245,487.21 250,419.45 233,582.39 209,757.94

ASSETS

NON-CURRENT ASSETS

Tangible Assets 124,504.16 128,454.45 128,053.76 118,450.97 90,322.78

Intangible Assets 4,472.47 2,976.04 2,442.37 1,994.32 1,682.66

Capital Work-In-Progress 21,227.62 18,128.74 18,862.06 17,956.51 16,159.80

Intangible Assets Under Development 817.93 878.66 634.77 684.70 454.61

Fixed Assets 151,022.18 150,437.89 149,992.96 139,086.50 108,619.85

Non-Current Investments 4,615.43 3,463.04 2,853.31 3,213.31 2,990.50

Deferred Tax Assets [Net] 3,023.93 1,578.02 1,270.33 808.95 1,035.80

Long Term Loans And Advances 1,282.44 91.93 488.71 613.34 717.34

Other Non-Current Assets 28,633.81 25,359.74 33,026.89 26,872.69 24,417.84

Total Non-Current Assets 192,888.99 185,275.31 191,686.73 174,591.41 141,880.78

CURRENT ASSETS

Current Investments 8,524.42 7,218.89 3,431.87 2,524.86 14,908.97

Inventories 48,824.39 33,276.38 31,068.72 31,656.10 28,331.04

Trade Receivables 12,246.43 9,539.84 7,884.91 11,811.00 12,415.52

Cash And Cash Equivalents 15,898.93 5,782.18 8,054.72 3,341.37 7,937.85

Short Term Loans And Advances 5.84 5.59 215.68 239.70 256.48

OtherCurrentAssets 7,056.60 4,389.02 8,076.82 9,417.95 4,027.30

Total Current Assets 92,556.61 60,211.90 58,732.72 58,990.98 67,877.16

Total Assets 285,445.60 245,487.21 250,419.45 233,582.39 209,757.94

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

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Contingent Liabilities 33,004.72 25,723.75 26,907.88 26,941.26 22,182.67

BONUS DETAILS

Bonus Equity Share Capital 252.97 252.97 252.97 252.97 252.97

NON-CURRENT INVESTMENTS

Non-Current Investments Quoted Market

0.00 0.00 205.02 454.53 753.87
Value

Non-Current Investments Unquoted Book

0.00 0.00 479.75 835.83 15,364.38
Value

CURRENT INVESTMENTS

Current Investments Unquoted Book Value 0.00 0.00 3,431.87 2,524.86 0.00

Source : Dion Global Solutions Limited

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