By- UTKARSH GUPTA 11BSP1908 Sec - I

About TATA STEEL.

Tata steel is a multinational company headquartered

in Jamshedpur, India and owned by Tata Group. It is the world's seventh-largest steel company, with an annual crude steel capacity of 31 million tonnes, and the largest private-sector steel company in India measured by domestic production. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005

Disclosures
The Board has received disclosures from key

managerial personnel relating to material, financial and commercial transactions where they and/or their relatives have personal interest. The Company has complied with the requirements of the Stock Exchanges. No penalties or strictures have been imposed on the Company by the Stock Exchanges. The Company has adopted a Whistle Blower Policy and has established the necessary mechanism. The company has set up a remuneration committee for the benefit of employees.

Liquidity Ratio Current ratio Quick ratio

Year 2010 1.12 0.76

Year 2011 1.89 1.58

Current ratio: Its ideal ratio is 2:1 Thus, here the company can pay off its short 2 term debt easier in the current year as compared to previous year. 1.5 When a large part of inventory is included 1 in current asset, in this situation we need to calculate the Quick ratio to show case the solvency of the company. Its ideal ratio is 1:1. 0.5 So the current year was good as compared to previous year.
0 2010 2011 CR QR

Solvency Ratios Debt equity ratio Long term debt equity

Year 2010 o.68 0.68

Year 2011 0.64 0.64

Debt equity ratio indicates the proportion of the share holders equity and debt. So there is not much variation. Long term debt equity ratio which indicates the ratio of long term debts to its equity. So there is not much variation.

0.68
0.67 0.66 0.65 0.64 0.63 0.62 2010 2011 DER

LTDER

Profitability Ratios

Year 2010

Year 2011

Operating profit margin Profit before interest & tax margin

35.70 30.95

39.00 34.17

Operating income = Operating income/ Total revenue It can convert 39% of the sales in the current year which is 3.30% more than the previous year. PBIT increased at a rate of 3.22% as compared to previous year.

45 40 35 30 25 20 15 10 5 0 2010 2011

OPM

PBIT

Profitability ratios Gross profit ratio Net profit ratio Gross Profit Margin= GP/Net sales As the GPR increases it is better for the company. For the current year it is 35.09% which is 3.73% more than the previous year.

Year 2010 31.36 19.96

Year 2011 35.09 22.81

40 35 30 25 20 15 10 5 0 2010 2011 GPR NPR

The higher the Net Profit Margin is, the more effective the company is at converting revenue into actual profit. For the current year it is 22.81% which is 2.85% more than the previous year.

Management inventory ratio Debtors turnover ratio

Year 201o 46.58

Year 2011 67.93

Investment turnover ratio

10.90

8.07

Debtors turnover ratio indicates the number of times the debtors are turned over a year. Here DTR is increased which shows the more efficient is the management of debtors or more liquid the debtors are. Inventory turnover ratio measures the number of times, on average, the inventory is sold during the period. In this case it decreases slightly which shows company is having more stock with it compare to previous year.

70 60 50 40 30 20 DTR ITR

10
0 2010 2011

Management inventory ratios FATO TATO

Year 2010 1.12 0.40

Year 2011 0.98 0.38

Fixed asset turnover ratio is decreased by 0.14%, company has to improve its FATO by increasing sales or by FA or by both.

1.2 1 0.8 0.6 FATO TATO

The companys TATO is slightly decreased which is considered not good for the companys point of view.

0.4 0.2

0
2010 2011

Conclusion
Efficient utilization of resources. Capable of paying short term expenses.

There is a rise in net profit ratio and gross profit ratio

Investor can look up for this company for the purpose

of investment.