TATA STEEL PLANT

ANNUAL REPORT SUMMARY

ACCOUNTING POLICIES

FIXED ASSETS: All fixed assets are valued at cost less depreciation. Preoperation expenses including trial run expenses (net of

revenue) are capitalised.

DEPRECIATION: Capital assets whose ownership does not vest in the

Company is depreciated over their estimated useful life or five years, whichever is less.

INVESTMENTS:
Long term investments are carried at cost less provision

for permanent diminution. Current investments are

carried at lower of cost and fair value.

INVENTORIES:
Finished and semi-finished products produced and purchased by the Company are carried a lower of cost

and net realisable value. Work-in-progress is carried at

lower of cost and net realisable value.

RATIO WISE ANALYSIS

It is a ratio of Monetary current Asset to

Current Liability.

Quick Ratio = 4012.88

8699.34

= 0.46

Current Ratio is equal to Current Asset

divided by Current Liabilities.

Current Ratio = 13425.27 12003.02

= 1.12

Debt Equity Ratio is equal to Long term

Liabilities divided by Shareholders Equity.

Debt / Equity = 25239.20 37168.75

= 0.68

In order to calculate it you should divide the

annual sales of the company by its inventory

Inventory Turnover = 26757.60 = 8.6

3077.75

Mar 06

Mar 07

Mar 08

Mar 09

Mar 10

CURRENT RATIO

0.71

1.69

3.81

0.91

1.12

QUICK RATIO

0.30

1.37

3.52

0.57

0.76

DEBT/ EQUITY RATIO

0.26

0.69

1.08

1.34

0.68

INVENTORY TURNOVER RATIO

7.08

7.69

10.84

9.36

10.90

DEBTORS TURNOVER RATIO

26.99

29.81

33.45

41.29

46.28

( TRADE RATIOS FOR THE 3 YEARS )

PARTICULARS

MARCH 2008

MARCH 2009

MARCH 2010

NET SALES

100

124

127

OTHER INCOME

100

103

212

TOTAL INCOME

100

124

129

TOTAL EXPENCES

100

135

139

OPERATING PROFIT

100

111

108

REPORTED NET PROFIT

100

112

108

 From the above trend analysis, we can understand that net

sales has grown by 27% over the past three years but the reported net profit has boosted by 8% and the operating profit has increased by 8% in the same period.Total expenses increased by 39% eventhough the sales increased by 27% and the total income increased by 29%. That is the reason for the disproportionate increase in the reported net profit when

compared to increase in sales and the other income.Thus the

company is in healthy trend but with a lesser growth rate.

LIABILITIES

MARCH 2009 (In Rs.cr)

6203

COMMON SIZE (%)

MARCH 2010 (In Rs.cr)

887

COMMON SIZE (%)

TOTAL SHARE CAPITAL

10.94

1.42

RESERVES

23501

41.48

36281

58.13

NETWORTH

29704

52.43

37168

59.55

SECURED LOANS

3913

6.90

2259

3.61

UNSECURED LOANS

23033

40.65

22979

36.82

TOTAL LIABILITIES

56650

62407

ASSETS
INVENTORIES

MARCH 2009
3480

COMMON SIZE (%)

6.14

MARCH 2010
3077

COMMON SIZE (%)

4.93

TOTAL CURRENT ASSETS

4580

8.08

4012

6.42

FIXED DEPOSITS

1127

1.98

2733

4.37

SUNDRY DEBTORS

635

1.12

434

0.69

CASH & BANK BALANCE

463

8.17

500

0.80

TOTAL ASSETS

56650

62407

PARTICULARS/ COMPANY

TISCO (in Rs. crores)

26843.66 25240.66 15461.15

SAIL (in Rs. crores)

49331.33 47674.22 36730.01

SALES TURNOVER TOTAL INCOME TOTAL EXPENSES

OPERATING PROFIT NET PROFIT

9176.44 5201.74

8941.44 6174.81

SAIL, Jsw steel,Visa steel are the main competitors for tata steel. Last price of Jsw steel is more compared to TATA steel. SAIL stands at first place in market capital having 84,260.17 cr followed by TATA steel.

Coming to sales turnover and net profit also, SAIL is in leading position. But the total assets are highest among all for the TATA steel.

Tata Iron and Steel Company Limited, is the

world's seventh largest steel company.

Tata Steel is also India's second-largest and

second-most profitable company in private

sector.

Its main plant is located in Jamshedpur,

Jharkhand, the registered office of Tata Steel