TATA STEEL Ltd.

Introduction
In the past by 100 glorious years of experience in steel making, Tata Steel is the
worlds 6th largest steel company with an existing annual crude steel production capacity of
30 Million Tonnes Per Annum (MTPA). Established in 1907, it is the first integrated steel
plant in Asia and is now the world`s second most geographically diversified steel producer
and a Fortune 500 Company. Tata Steel has a balanced global presence in over 50 developed
European and fast growing Asian markets, with manufacturing units in 26 countries.
Vision

Tata Steel vision is to be the global steel industry benchmark for Value Creation
and Corporate Citizenship. They offer, by becoming the supplier of choice,
delivering premium products and services, and creating value with our customers

Mission

Revitalize the core business for a sustainable future. Uphold the spirit and values of
TATAs towards nation building.

Competitors
Company name

Market share %

Jindal steel

SAIL

TISCO

------

20.8%

ESSAR LTD

------

12.43%

------------

15.06%
40.94%

RINL

-----

10.7%

Board Of Directors

Mr R N Tata

Mr B Muthuraman

Mr Nusli N Wadia

(Company Director)

Mr S M Palia

(Company Director)

Mr Ishaat Hussain

(Board Member)

Dr Jamshed J Irani

(Board Member)

Mr Subodh Bhargava (Board Member)

(Chairman)
(Managing Director & CEO)

Awards
Tata Steel India awarded the Deming Application Prize 2008 for excellence in Total
Quality Management. It is the first integrated steel company in the world, outside
Japan to get this award.
World Steel Dynamics has ranked Tata Steel as the world's best steel maker (for two
consecutive years) in its annual listing in February 2006.
Tata Steel has been conferred the Prime Minister of India's Trophy for the Best
Integrated Steel Plant five times.
It has been awarded Asia's Most Admired Knowledge Enterprise award five times in
2003, 2004, 2006, 2007 and 2008.
Production

Tata steel annually produces 9 millions tones of steel in india and 21.4 million tones
overseas , making it the fifth largest steel producer in the world.
Products
Tata Shaktee (Galvanized Corrugated Sheets )
Tata Tiscon (re-bars), Tata Bearings,
Tata Agrico (hand tools and implements),
Tata Wiron (galvanized wire products),
Tata Pipes (pipes for construction)

and

Tata Structura (contemporary construction material).

Human Resource
Employees 78,700. The group is manned by skilled manpower in all work areas
like mining, manufacturing / marketing and service activities.
Recruitment

Tata Steel's recruitment policy is designed to attract the right talent at the right time,
to enhance the net worth of human capital and to obtain the best possible person-tojob,which will contribute to company's effectiveness.

Being fair and consistent.

Campus Relationship.

Employee Development.

Training Services:
Engineering and technical skills training
3

 Training of trainers
Recruitment services
Management development programmes
Research &development
The establishment of a Research Department, the first of its kind in India, way back
in 1935, stands as a testimony to the spirits of the early pioneers and the vision of the
founder of TATA STEEL LIMITED. The Companys strength in research and development
has consistently helped to meet the challenges of growth and change.
Marketing
Tata has operations in 24 countries and commercial presence in over 50 countries.
Tata Steel is the worlds sixth largest steel company with an existing annual crude
steel capacity of 30 million tonnes per annum.

Finance
Net Profit in the year2007 is 2,409.12 crores , in the year 2008 it is increase to

3914.62.
Current Ratio 3.92
Quick Ratio 3.52
Operating Profit 8244.54
Debt-Equity Ratio 1.08
Earning Per Share 63.85

SWOT Analysis
Strength
Tata Steel is the worlds sixth largest steel company
Tata steel is the WORLDs BEST STEEL MAKER
Weakness
Low perception among investors about the companys management and ability to sustain
growth.
Opportunities
4

 They explore in titanium dioxide business in Tamil Nadu.

High carbon ferro-chrome plant in South Africa.
Threats
Heavy competition from his competitors.
Big threat from Financial Crisis.
Findings
Tata steel obtained cheaper financial resources than previous years.
Suggestions
The company should manage its investments effectively.
Bibliography
www.tatasteel.com
Industrial profile:
Steel Industry in India is on an upswing because of the strong global and domestic demand.
India's rapid economic growth and soaring demand by sectors like infrastructure, real estate
and automobiles, at home and abroad, has put Indian steel industry on the global map.
According to the latest report by International Iron and Steel Institute (IISI), India is the
seventh largest steel producer in the world.
The origin of the modern Indian steel industry can be traced back to 1953 when a contract for
the construction of an integrated steelworks in Rourkela, Orissa was signed between the
Indian government and the German companies Fried Krupp und Demag AG. The initial plan
was an annual capacity of 500,000 tones, but this was subsequently raised to 1 million tonnes.
The capacity of Rourkela Steel Plant (RSP), which belongs to the SAIL (Steel Authority of
India Ltd.) group, is presently about 2 million tonnes. At a very early stage the former USSR
and a British consortium also showed an interest in establishing a modern steel industry in
India. This resulted in the Soviet-aided building of a steel mill with a capacity of 1 million
tonnes in Bhilai and the British-backed construction in Durgapur of a foundry which also has
a million tonne capacity.
The Indian steel industry is organized in three categories i.e., main producers, other major
producers and the secondary producers. The main producers and other major producers have
integrated steel making facility with plant capacities over 0.5 mT and utilize iron ore and
5

coal/gas for production of steel. The main producers are Tata Steel, SAIL, and RINL, while
the other major producers are ESSAR, ISPAT and JVSL. The secondary sector is dispersed
and consists of: (1) Backward linkage from about 120 sponge iron producers that use iron ore
and non-coking coal, providing feedstock for steel producers; (2) Approximately 650 mini
blast furnaces, electric arc furnaces, induction furnaces and energy optimizing furnaces that
use iron ore, sponge iron and melting scrap to produce steel; and (3) Forward linkage with
about 1,200 re-rollers that roll out semis into finished steel products for consumer use.

Company profile :
Introduction

100 glorious years of experience in steel making, Tata Steel is the worlds 6th largest steel
company with an existing annual crude steel production capacity of 30 Million Tonnes Per
Annum (MTPA). Established in 1907, it is the first integrated steel plant in Asia and is now
the world`s second most geographically diversified steel producer and a Fortune 500
Company.
Tata Steel has a balanced global presence in over 50 developed European and fast growing
Asian markets, with manufacturing units in 26 countries.
It was the vision of the founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the
first stake was driven into the soil of Sakchi. His vision helped Tata Steel overcome several
periods of adversity and strive to improve against all odds.
Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and NatSteel
Holdings, Singapore, Tata Steel has created a manufacturing and marketing network in
Europe, South East Asia and the pacific-rim countries. Corus, which manufactured over 20
MTPA of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway
and Belgium.

History :
1907
- The Tata Iron and Steel Company Limited was formed in 1907 at Mumbai. The Company
manufactures rails, fishplates, bars, light structurals, heavy structurals, plates, black sheets,
galvanised sheets, tin bars, sleeper bars, sleepers, blooms, billets, sheet bars, wheels, tyres
and axles, skelp and strip, and special steels tools such as picks, beaters, hammers and
shovels and red-oxide, coal tar, sulphate of ammonia, etc.
- Iron and steel are made by the open hearth, duplex electric and a combination of these
processes, and the steel is rolled into finished products.
1917
- During the year 1,50,000 equity shares issued at par and 26,250 deferred shares issued at a
premium of Rs.370 per share.
1919
- During the year 7,00,000 second pref. shares of Rs.100 each issued at par. 6181 second pref.
shares forfeited.

1954
- During the year, 8750 defd. shares of Rs.30 each converted into 292,500 equity shares of
Rs.75 each. 642,500 bonus equity shares issued in prop. 1:1.
1956
- During the year 12,85,000 right equity shares issued in prop.1:1, and a premium of 30 per
share.
2000
- Tata Steel is in talks with Usinor of France, one of the world's largest steel manufacturers, to
jointly bid for Steel Authority of India's (SAIL) Salem Steel Plant.
- The Tata Iron and Steel Company (Tisco) has introduced a pilot freight rationalisation
project in the eastern region in line with the recommendations of global consultants Booz
Allen.
- Tata Steel has been awarded the All-India Trophy for Top Exporters in the category of
Manufacturing Units.
- The Company is expanding into chrome ore and ferro chrome production as an area of
growth and plans to produce 2,00,000 tonnes of high carbon ferro chrome during 2000-01.
- Tata Steel, the flagship of the Tata group, has entered into an understanding with Tata
International to export 30 per cent of the production at the steel major's new 1.2 million tonne
cold rolling in Jamshedpur.
- The Steel Division of the Tata Iron and Steel Company Ltd. (Tata steel) has won the `JRD
QV Award' for 2000, the highest recognition of total quality within the Tata Group.
- Tata Steel has tied up with the POSCO-Hyundai steel processing venture located in Chennai
for getting its cold rolled coils processed.
- The Company has incorporated the first phase of mySAP.com, the collaborative Internet
business model, to strengthen customer relationship.
8

- Tata Steel commissioned its fifth stamp charged coke oven battery at its coke plant-2.
- Private sector steel majors Tisco, Kalyani Steel and the public sector Steel Authority of
India are all set to form a three-way joint venture for undertaking e-commerce activities in
the steel sector.
- IBM India and Tata Steel have signed an IT agreement by which Tata Steel will outsource
its IT requirements from IBM India.
- Stewarts and Lloyds of India Ltd. a subsidiary of Tata Steel, has set up a propane
handling/bottling plant for Tata Steel at Jamshedpur on build, own, operate and transfer basis.
- The Company has informed that, Steel Authority of India, Tata Steel and Kalyani Steel have
signed MoU for creation of Internet based, global, independent B2B steel marketplace.
- Tata Steel has bagged the Prime Minister's trophy for the best performing steel plant for the
year 1998-99. - Tata Steel bagged the coveted CII-Exim Bank award for Business Excellence
for 2000.
- Tata Steel has launched its latest branded steel product -- Tata Tiscon - a speciality
construction grade steel which will be available in the retail market.
- Credit Rating and Investment Services of India Ltd. has placed the Rs 26.42 crore nonconvertible debenture programme of the company on a rating watch with positive
implications.
2001
- Tata Iron and Steel Company Ltd. is the recipient of National Award for Excellence in
Corporate Governance for the year 2000.
- Tata SSL has become a subsidiary of Tata Iron and Steel Company, following a successful
open offer to the shareholders of TSSL.
- Tata Steel has emerged as the world's leading steel maker in a study carried out by World
Steel Dynamics (WSD). The company has been ranked at the top among 12 companies WSD

has identified as world class steel makers, Dr J.J. Irani, Managing Director, Tata Steel said at
a news conference on July 18.
- Tata Steel is setting up a joint venture with IQ Martrade Holding Und Management of
Germany to facilitate efficient handling of cargoes and provide the full gamut of port
management at various ports in India.
- Tata Steel has increased its price of hot rolled (HR) and cold rolled (CR) galvanised
products by Rs 500 per tonne with effect from October 1
2002
- TATA Steel's Noamundi Iron Mine (NIM) has been given away the Indira Priyadarshini
Vrikshamitra Award 2000 instituted by the National Afforestation & Eco-Development Board
under the Union Ministry of Environment and Forests. NIM is one of the biggest and fully
mechanised iron ores in the newly formed State of Jharkhand. NIM is supplying high-grade
iron ore to Tata Steel's Jamshedpur plant. NIM was incorporated in 1925.
-Tata Iron & Steel Company Ltd has informed BSE that Mr S A Sabavala has resigned from
the Board of the Company w e f October 01, 2002.
-Tata Iron and Steel Company Ltd has informed that on his demise on October 28, 2002, Mr
Mantosh Sondhi has ceased to be a Director of the company.
2003 -Tata Iron & Steel co. Ltd. entered in to a power distribution business. Tisco has began
distributing power in Jamshedpur.
-Tisco gets lenders proposal to acquire Neelachal Ispat Nigam Limited (NINL)
-Tata Steel signed an agreement with its consortium partners for setting up its titania project
in Tamil Nadu.
-Tata Steel has been awarded Engineering Export Promotion Council National Award for
outstanding export performance for the year 2000-2001, sponsored by ministry of commerce,
govt of India.

10

-Tata Steel's mines division as well as its ferro alloys & mineral division (FAMD) have
bagged 24 awards in group events and 21 in individual events in the different categories of
safety competitions
-The Tatas have appointed Rajeev Dubey, who had to quit as managing director of
agrochemical major Rallis India following heavy losses during the last financial year, as
advisor to Tata Steel managing director B Muthuraman.
-Tata Steel records good performance on advance tax payment talks
-Praxair, the Bangalore-based industrial gases supplier, has bagged an order from Tata Steel
for setting up a facility for on-site supply of oxygen, nitrogen and argon. The company would
build an air separation plant with control systems adjacent to Tata Steel's works at
Jamshedpur.

2004
-Tata Steel April-Dec output of crude & saleable steel over 3 million tonnes
-Tata Steel gets Petroleum Conservation Research Association award for energy conservation
-Tata Steel breaks JV with Veolia Water
-Swosti group takes over Tisco property at Gopalpur
--Metaljunction (MJ)- the online trading and procurement joint venture of Tata Steel and
Steel Authority of India (SAIL)- has roped in UTI Bank to start off own equipment for Tata
Steel.
The flat products division of Tata Iron & Steel Company Ltd (Tisco) was awarded the
ISO/TS 16949 certification on March 30
-Jamshedpur Utility and Services Company (Jusco), a wholly owned subsidiary of Tata Steel,
has tied up with Canadian Minnaean Building Solutions for using its patent on high gauge
steel-based housing and construction
11

-Tata Steel's Ferro Alloys & Minerals Division (FAMD) and Bearing Division received the
CII award for 'Significant Improvement in Productivity' for 2003-2004.
-Solid Energy, New Zealand's largest producer, distributor and exporter of coal, will be
supplying high quality coking coal to Tata Steel. Solid Energy recently signed a three-year
contract with Tata Steel for supplying high-grade coking coal
-Tata Iron and Steel Company Ltd (Tisco) have signed a barter agreement with one of China's
top trading companies to exchange its iron ore for coke
- Tata Steel ranked among global companies in the world's most respected companies survey,
2003 for corporate social responsibility
-Tata Steel's Sukinda Chromite Mine in Orissa has been conferred the SA: 8000:2001
certification conferred by the Social Accountability International (SAI), USA.
-R&D team conferred the 'Technology Day Meritorious Invention Award' by the National
Research & Development Corp (NRDC)
-Tata Steel launched "Wiron", a branded galvanised wire, aiming at a sales target of three
lakh tonnes
-Tata Steel, country's largest integrated steel producer in private sector announced a
partnership with SAP India for offering business software solutions for the industry
-Tata Iron & Steel Company Ltd has informed that with effect from August 01, 2004, Mr
Koushik Chatterjee has been appointed as Vice President Finance
-Tata Steel buys Singapore's NatSteel
-Tata Steel and Larsen & Toubro (L&T) signs definitive agreement to form a 50:50 joint
venture for setting up a port at Dhamra in Orissa on October 29, 2004.
2005

12

-Tata Iron and Steel Company Ltd signs Joint Venture Agreements with Iranian Mines and
Mining Industries Development and Renovation Organization to join them in proposed steelmaking projects and mining operations in Iran.
-Tata Steel has signed a memorandum of understanding with Nippon Steel Corporation of
Japan for its proposed 6 million tonne per annum steel plant in Kalinganagar, in Jajpur
district of Orissa
-Hoogly Met Coke and Power Co Ltd, a joint venture between Tata Steel and West Bengal
Industrial Development Corporation, has been allotted 180 acres of land for its proposed
metallurgical coke and power plant project at Haldia.
-Tata Steel sets up steel retail store Steeljunction
2006
-Tata steel sets up Jiggling and hydro-cyclone plant
-Tisco establishes processing unit at Noamundi mine
-Tata Steel signs JV Agreement with Tata Power to set up captive power plants.
2007
-Tata Steel enters into Share Purchase Agreement with Rawmet Ferrous Industries.
-Tata Steel completes 6.2bn acquisition of Corus Group plc.
- Tata Steel signs MOU with Vietnam Steel Corporation for the proposed steel project in Ha
Tinh province in Vietnam.
-On August 03, 2007, the Tata Steel Ltd and Riversdale Mining Ltd. have entered into a
Memorandum of Understanding, whereby the Company will become a strategic investor in
Riversdale's Mozambique Coal Project, by acquiring 35% stake in it for a sum of A$ 100
million.

13

-Tata Steel Ltd has informed that Riversdale Mining Ltd and the Company have signed an
agreement to establish a special purpose joint venture vehicle to develop a hard coking and
thermal coal project at key coal exploration tenements held by Riversdale in Mozambique.
-Tata Steel Ltd and SODEMI sign a Joint Venture Agreement for Mount Nimba Iron Ore
deposits in Ivory Coast, West Africa.
-The company has issued rights in the ratio of 1:5 at a premium of Rs. 290/- Per Share.
2008
-Tata Steel has concluded an alliance pact with the Al Bahja Group of Oman for the
development of the Uyun limestone deposits at Salalah in the Sultanate of Oman.
Vision:

Our people, by fostering team work, nurturing talent, enhancing leadership capability
and acting with pace, pride and passion.

Our offer, by becoming the supplier of choice, delivering premium products and
services, and creating value with our customers.

Our innovative approach, by developing leading edge solutions in technology,

processes and products.

Our conduct, by providing a safe working place, respecting the environment, scaring
for our communities and demonstrating high ethical standards.

Mission:

Revitalize the core business for a sustainable future. Uphold the spirit and values of
TATAs towards nation building.

Awards:

14

Tata Steel India awarded the Deming Application Prize 2008 for excellence in Total
Quality Management. It is the first integrated steel company in the world, outside
Japan to get this award.

World Steel Dynamics has ranked Tata Steel as the world's best steel maker (for two
consecutive years) in its annual listing in February 2006.

Tata Steel has been conferred the Prime Minister of India's Trophy for the Best
Integrated Steel Plant five times.

It has been awarded Asia's Most Admired Knowledge Enterprise award five times in
2003, 2004, 2006, 2007 and 2008.

Products:

Tata Shaktee (Galvanized Corrugated Sheets )

Tata Tiscon (re-bars), Tata Bearings,

Tata Agrico (hand tools and implements),

Tata Wiron (galvanized wire products),

Tata Pipes (pipes for construction)

Tata Structura (contemporary construction material).

Human Resource :
Employees 78,700. The group is manned by skilled manpower in all work areas like
mining, manufact It is committed to equal employment opportunities for attracting the best
available talent and ensuring a cosmopolitan workforce.
It will pursue management practices designed to enrich the quality of life of its employees,
develop their potential and maximise their productivity.
It will aim at ensuring transparency, fairness and equity in all its dealing with its employees.
15

Tata Steel will strive continuously to foster a climate of openness, mutual trust and teamwork
Recruitment :

Tata Steel's recruitment policy is designed to attract the right talent at the right
time, to enhance the net worth of human capital and to obtain the best possible
person-to-job, which will contribute to company's effectiveness.

Being fair and consistent.

Campus Relationship.

Employee Development.

Training Services:

Engineering and technical skills training

Training of trainers

Recruitment services

Management development programmes

Research &development:
The establishment of a Research Department, the first of its kind in India, way back in
1935, stands as a testimony to the spirits of the early pioneers and the vision of the founder
of TATA STEEL LIMITED. The Companys strength in research and development has
consistently helped to meet the challenges of growth and change.

16

By that time, the First World War was over and at the instance of the Indian Government,
TATA STEEL LIMITED had already supplied 2,400 km of special Steel Rails and 3 Lakh
tons of special grade steel for the manufacture of Combat Helmets, Jerri Cans and other
materials for Allied Forces. Lord Chelmsford, the then Viceroy was highly impressed and for
the services rendered by TATA STEEL LIMITED during the war.
Not that there were no provisions or facilities to carry out laboratory tests for
improvement in quality and production standard earlier, but it was only in 1935, when on
Nov 6th, the Foundation Stone of the new R&D Building was laid by Mr. A.R. Dalal, the then
Director of Tata Sons Limited before a distinguished gathering. A new saga began.
Meanwhile in civil front too, TATA Steels R&D made significant contributions for
the construction of How rah Bridge over river Roughly in Calcutta. It supplied varieties of
low alloy structural steel TISCORM, Die-steel was supplied for manufacture of small coins,
low-tungsten steel for Hacksaws, tungsten carbon steel for taps and cartridge drawings dies,
silicon-chrome-tungsten steel for pneumatic tools, chrome-carbon steel for Razor blades and
Stainless heat-resistant steel for the Post & Telegraphs. R&D never slept..
Research & Control Lab.(1935)
After a short while the Second World War began. And again the Government of India turned
for supplies of steel to TISCO and as before, the R&D stood the test of time supplying special
grade steels like TISCORM and TISCOR to the army both of which bore adequate strength to
manufacture Bullet proof Armour Plates and cannon shells for use in the war.
Years passed by and TATA Steels products found markets around the globe. Today its
products are being exported to countries like the United Kingdom, USA, Canada, France,
Germany, Korea, Taiwan, Malaysia and China, beside others. Before marketing here too
R&D plays major roles.
Objectives
Sustainability issues are reflected through specific social and environmental objectives and
targets accepted by the top management as a part of Vision.

17

To achieve its sustainability goals, the organisation has identified 12 key enterprise processes
critical to the growth and success of the organisation. Mapping and identifying stakeholder
concerns through a structured engagement and feedback process has been initiated. These
stakeholder concerns are analysed, prioritised and are the prescribed goals for Corporate
Sustainability Management. The senior management of Tata Steel tracks the performance of
the targets against each strategic goal.
Sustainability at the Tata Group and Tata Steel has always been value-driven. The five core
values underpinning the way the Tata companies conduct business are:
Integrity
Understanding
Excellence
Unity
Responsibility
The world's sixth-largest steelmaker has seen strong demand from its Indian operations,
which account for about a quarter of the group's annual global capacity of 30 million tonnes.
Its Indian operations posted a 31 per cent rise in sales in April, and an 18 per cent increase in
May.
At 1.17 p.m. (0747 GMT), Tata Steel shares were up 4.5 percent at 406.35 rupees in a strong
Mumbai market.
Tata steel carees:
Tata Steel's recruitment policy is designed to attract the right talent at the right time, to
enhance the net worth of human capital and to obtain the best possible person-to-job, which
will contribute to company's effectiveness.
The Company's Recruitment Policy aim at:

Being fair and consistent;

Being non-discriminatory on the grounds of sex, race, age, religion or disability;

Conform to statutory regulations

18

Tata Steel offers careers in various streams of competence embracing areas from technology
and strategy to research, marketing, medical and aviation.
Organisation structure :
Name

Designation

R N Tata

Chairman / Chair Person

Nusli N Wadia

Director

Suresh Krishna

Director

Jamshed J Irani

Director

Jacobus Schraven

Non.Exe.Independent Director

B Muthuraman

Managing Director

Andrew Robb

Non.Exe.Independent Director

Kirby Adams

Additional Director

James Leng

Deputy Chairman

S M Palia

Director

Ishaat Hussain

Director

Subodh Bhargava

Director

Anthony Hayward

Non.Exe.Independent Director

T Mukherjee

Non Executive Director

H M Nerurkar

Executive Director

19

Production:
Tata steel annually produces 9 millions tones of steel in india and 21.4 million tones
overseas , making it the fifth largest steel producer in the world.
Tata Steel completed the month of June with a significant increase in its hot metal, crude
steel and saleable steel production over the corresponding month, last year. Production of
hot metal, crude steel and saleable steel in June this year went up by 16 per cent, 21 per
cent and 38 per cent, respectively, over June, 2008. The figures are appended below:
Production & Sales Performance
Production & Sales Performance

Figures in 000 tonnes

Items
June
2008 2009

Q1
FY09

FY10

% Change

Chang
Hot Metal 499
Crude Steel 425
Saleable
382

578
514
526

e
16
21
38

1387
1253
1187

1685
1503
1542

21
20
30

Steel
Sales

497

19

1159

1418

22

419

20

Finance:
Balance sheet :
Rs. cr
Period & months
SOURCES OF FUNDS
Owned Funds
Equity Share Capital
Share Application Money
Preferential Share Capital
Reserves & Surplus
Loan Funds
Secured Loans
Unsecured Loans
TOTAL

2008/03

2007/03

2006/03

2005/03

2004/03

730.78
0.00
5,472.52
21,097.43

580.67
147.06
0.00
13,368.42

553.67
0.00
0.00
9,201.63

553.67
0.00
0.00
6,506.25

369.18
0.00
0.00
4,146.68

3,520.58 3,758.92 2,191.74 2,468.18 3,010.16

14,501.11 5,886.41 324.41
271.52
363.12
45,322.42 23,741.48 12,271.45 9,799.62 7,889.14

USES OF FUNDS
Fixed Assets
Gross Block
Accumulated Depreciation
Less: Revaluation Reserve
Net Block
Capital Work-in-progress

16,479.59
8,223.48
0.00
8,256.11
4,367.45

Investments

4,103.19 6,106.18 4,069.96 2,432.65 2,194.12

16,029.49
7,486.37
0.00
8,543.12
2,497.44

15,407.17
6,699.85
0.00
8,707.32
1,157.73

13,085.07
5,845.49
0.00
7,239.58
1,872.66

12,505.83
5,411.62
0.00
7,094.21
763.64

Net Current Assets

Current Assets, Loans & Advances
38,196.34 14,671.91 4,997.00 4,935.90 4,933.61
Less: Current Liabilities & Provisions 9,755.78 8,279.70 6,913.83 6,895.99 7,252.41
Total Net Current Assets
28,440.56 6,392.21 -1,916.83 -1,960.09 -2,318.80
Miscellaneous Expenses not written

155.11
off
TOTAL
45,322.42
Number of Equity shares outstanding
73.06
(Cr.)
Bonus component in Equity Capital 252.97
Notes:
Book Value of Unquoted Investments 3,790.47

202.53

253.27

214.82

155.97

23,741.48 12,271.45 9,799.62 7,889.14

58.05

55.35

55.35

36.78

252.97

252.97

252.97

73.44

5,793.46 3,477.38 2,119.75 1,878.43

21

Market Value of Quoted Investments 3,260.65 2,979.00 4,079.52 1,952.43 2,031.69

Contingent liabilities
9,250.08 7,185.93 3,872.34 2,983.05 2,669.02

Financial ratios:

Rs.crs
2014/03

2013/03

2012/03

2011/03

2010/03

Per Share
EPS
CEPS
Book Value
Dividend/Share
Operating Profit / Share
Net Operating Income / Share
Free Reserves / Share

63.85
75.27
298.78
16.00
112.85
269.02
275.25

72.74
86.85
240.31
15.50
119.11
300.66
213.24

63.35
77.36
176.26
13.00
106.31
273.40
147.23

62.77
73.95
127.56
13.00
107.61
261.80
99.41

47.48
64.48
122.79
10.00
94.49
290.92
86.74

Profitability Ratios
OPM
GPM
NPM
RONW

41.94
37.70
23.43
20.42

39.61
34.91
23.53
31.19

38.88
33.76
22.78
36.44

41.10
36.83
23.72
50.27

32.47
26.63
16.00
43.76
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Liquidity ratios
Debt/Equity
Current Ratio
Quick Ratio
Interest Cover

1.08
3.92
3.52
9.25

0.69
1.77
1.37
29.45

0.25
0.72
0.29
36.46

0.38
0.71
0.33
26.72

0.74
0.68
0.39
15.98

Turn Over Ratios

Sales/Total Assets
Sales/Fixed Assets
Sales/Current Assets

0.69
1.56
0.51

2.73
1.58
1.19

-7.89
1.53
3.03

-7.39
1.59
2.94

-4.61
1.36
2.17

Miscellaneous
No of Days of Working Capital
CAR

520.93
0.00

131.85
0.00

-45.60
0.00

-48.70
0.00

-78.02
0.00

Profit & loss:

Rs. cr
Period & months
INCOME
Net Operating Income

2014/03

2013/03

2012/03

2011/03

2010/03

19,654.41 17,452.66 15,132.09 14,489.70 10,699.31

EXPENSES
Material Consumption
Manufacturing Expenses
Personel Expenses
Selling Expenses
Administrative Expenses
Capitalised Expenses

6,024.80
2,693.73
1,589.77
52.53
1,224.54
-175.50

4,661.53
2,364.40
1,351.51
80.75
902.30
-112.62

4,288.88
2,219.02
1,291.00
86.18
853.42
-204.82

3,391.82
1,854.92
1,349.59
81.90
701.43
-155.28

Cost of Sales

11,409.87 10,538.91 9,247.87

8,533.68

7,224.38

Reported PBDIT

8,244.54

6,913.75

5,884.22

5,956.02

3,474.93

Other Recuring Income

Adjusted PBDIT

347.28
8,591.82

485.14
7,398.89

256.95
6,141.17

156.55
6,112.57

230.56
3,684.03

Depreciation

834.61

819.29

775.10

618.78

625.11

5,679.95
2,589.24
1,454.83
64.71
986.20
-236.02

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Other Write-offs

0.00

0.00

0.00

0.00

0.00

Adjusted PBIT

7,757.21

6,579.60

5,366.07

5,493.79

3,058.92

Finanical Expenses

929.03

251.25

168.44

228.80

230.56

Adjusted PBT

6,828.18

6,328.35

5,197.63

5,264.99

2,828.36

Tax Charges

2,380.28

2,040.47

1,734.38

1,823.82

920.44

Adjusted PAT
Non-recurring Items
Other Non-cash Adjustments

4,447.90
239.13
0.00

4,287.88
-123.02
57.29

3,463.25
-4.37
47.50

3,441.17
-47.80
80.79

1,907.92
-201.47
39.77

REPORTED PAT

4,687.03

4,222.15

3,506.38

3,474.16

1,746.22

APPROPRIATIONS
Equity Dividend
Preference Dividend
Retained Earnings

1,168.93
22.19
7,887.46

943.91
0.00
6,093.98

719.51
0.00
4,476.16

719.51
0.00
3,290.21

368.98
0.00
1,637.42

SWOT Analysis:
Strengths:

Tata Steel is the worlds sixth largest steel company

Tata steel is the WORLDs BEST STEEL MAKER
Low labour wage rates.
Abundance of quality manpower.
Mature production base.
Positive stimuli from construction industry
Booming automobile industry
24

Weakness:
Low perception among investors about the companys management and ability to

sustain growth.
Labor productivity is still very low.
Although India has modernised its steelmaking considerably, however, nearly 6% of

its crude steel is still produced using the outdated open-hearth process.
Labour productivity in India is still very low. According to an estimate crude steel
output at the biggest Indian steelmaker is roughly 144 tonnes per worker per year,

whereas in Western Europe the figure is around 600 tonnes.

Steel production in India is also hampered by power shortages.
India is deficient in raw materials required by the steel industry. Iron ore deposits
are finite and there are problems in mining sufficient amounts of it. India's hard coal

deposits are of low quality.

s Insufficient freight capacity and transport infrastructure impediments too hamper

the growth of Indian steel industry

Opportunities:

They explore in titanium dioxide business in Tamil Nadu.

High carbon faro-chrome plant in South Africa.
Company expansion all over the world.

Introduce new technology steel products.

Threats:
Heavy competition from his competitors.
Big threat from Financial Crisis.
Scarcity of raw materials.
Innovation products introduced by the competitors
Findings:

Tata steel obtained cheaper financial resources than previous years.

The decrease in the value of earnings per share may tend to decrease in the share
holders equity.

Delayed payment from debtors and large inventory conversion period adversely

affect the company.

The company has a higher number of equity shares and its EPS is less even through
the company obtained higher profits.

Suggestions:

The company should manage its investments effectively.

25

The company should provide exact information on the basis of cash due to high
demand in market also reduce the collection period.

The company has to liberalize the credit sales policy to increase the sales of the
company particularly in un-season.

Company has to maintain adequate working capital with a proper administration it

increase the short term profitability of the firm.

Bibliography
www.tatasteel.com

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