TATA Steel

Financial Statement Analysis
Of
Submitted By:
Name: Patel Sahal A.
Enrollment No. - 15P110
Batch – 2015-2017
Class – CR2
Roll No. – 28
Submitted To:
Prof. Gurmeet Singh

Content
1. Introduction
(A) Industry
(B) Company
2. Accounting Policies
3. Corporate Governance
4. Corporate Social Responsibility (CSR)
5. Financial Statement Analysis
(A) Ratio Analysis
(B) Trend Analysis
(C) Comparison with Industry
(D) Common Size Statement
6. Conclusion

1.Introduction
(A) Industry
The Indian steel industry, one of the core industries in India, is more than a century old when
the first integrated steel plant was established by Tata Iron & Steel (popularly known as Tata
Steel) in 1907. India is currently the world's fourth largest producer of crude steel and is
expected to become the second largest producer by 2015.
Steel industry derives its demand from other important sectors like infrastructure, aviation,
engineering, construction, automobile, pipes and tubes etc. Thus its intense integration with
other important industries makes it a strategic sector for the Governments as well.
The Indian steel sector enjoys advantages of domestic availability of raw materials and cheap
labour. Iron ore is also available in abundant quantities, though the recent mining restrictions
have put a strain on its availability. This abundance has been providing a major cost advantage
to the domestic steel industry.
Steel plays a vital role in the development of any modern and emerging economy. The per
capita consumption of steel is generally accepted as a yardstick to measure the level of socio-
economic development and living standards of its countrymen. As such, no developing country
can afford to ignore the steel industry.
Therefore, our endeavor, through this conglomeration of Governments, policy makers,
industrial leaders and potential investors from India and abroad is to discuss new growth drivers
that are revolutionizing the Indian steel industry and assess the challenges & opportunities
associated with new technologies along with identifying new growth frontiers. There are 17
Plant of Steel Company in India
(B) Company
Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is
an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India,
and a subsidiary of the Tata Group. It was the 11th largest steel producing company in the
world in 2013, with an annual crude steel capacity of 25.3 million tonnes, and the second largest
steel company in India (measured by domestic production) with an annual capacity of 9.7
million tonnes after SAIL.

Tata Steel has manufacturing operations in 26 countries, including Australia, China, India, the
Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500
people its largest plant is located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the
UK-based steel maker Corus which was the largest international acquisition by an Indian
company till that date
It was ranked 486th in the 2014 Fortune Global 500 ranking of the world's biggest corporations.
It was the seventh most valuable Indian brand of 2013 as per Brand Finance. On 16 February
2012 Tata Steel completed 100 years of steel making in India.
Type Public
Traded as NSE: TATASTEEL
BSE: 500470
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Steel
Founded 25 August 1907; 108 years ago
Founder Jamsetji Nausherwanji Tata
Headquarters Mumbai, Maharashtra, India[1]
Area served Worldwide
Key people Cyrus Pallonji Mistry
(Chairman)
T. V. Narendran
(Managing Director)
Anand Sen
(President TQM & Steel Business)

Products Steel, flat steel products, long steel
products, wire products, plates
Revenue US$ 24.59 billion (2013-14)[2]
Operating
income
US$ 2.71 billion (2013-14)[2]
Profit US$ 606.3 million (2013-14)[2]
Total assets US$ 24.93 billion (2013-14)[2]
Total equity US$ 8.45 billion (2013-14)[2]
Number of
employees
80,391 (Mar 2014)[2]
Parent Tata Group
Subsidiaries Tata Steel Europe
Website www.tatasteel.com
Tata Iron and Steel Company was established by Dorabji Tata on 25 August 1907, as part of
his father Jamsetji's Tata Group. By 1939 it operated the largest steel plant in the British
Empire. The company launched a major modernization and expansion program in 1951. Later
in 1958, the program was upgraded to 2 Million metric tonnes per annum (MTPA) project. By
1970, the company employed around 40,000 people at Jamshedpur, with a further 20,000 in
the neighbouring coal mines. In 1971 and 1979, there were unsuccessful attempts to nationalize
the company. In 1990, it started expansion plan and established its subsidiary Tata Inc. in New
York. The company changed its name from TISCO to Tata Steel in 2005. Tata Steel on
Thursday (12 Feb 2015) announced buying three strip product services centers in Sweden,
Finland and Norway from SSAB to strengthen its offering in Nordic region. The company,
however, did not disclose value of the transactions.

2.Accounting Policies
(a) Basic for Accounting
The financial statements are prepared under the historical cost convention on an accrual basis
of accounting in accordance with the Generally Accepted Accounting Principles, Accounting
Standards notified under Section 133 of the Companies Act, 2013 and the relevant provisions
thereof.
(b) Use of Estimates and Judgements
In preparation of the financial statements, the Company is required to make judgements,
Estimates and assumptions about the carrying amount of assets and liabilities that are not
readily apparent from other sources. The estimates and the associated assumptions are based
on historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and future
periods affected. Significant judgements and estimates about the carrying amount of assets and
liabilities include useful lives of tangible and intangible assets, impairment of tangible assets,
intangible assets including goodwill, investments, employee benefits and other provisions and
recoverability of deferred tax assets.
(c) Revenue Recognition
i. Revenue from sale of goods is recognized net of rebates and discounts on transfer of
significant risks and rewards of ownership to the buyer. Sale of goods is recognized
gross of excise duty but net of sales tax and value added tax.
ii. Export incentive under various schemes notified by the Government has been
recognized on the basis of amount received.
iii. Dividend is recorded when the right to receive payment is established. Interest income
is recognized on time proportion basis taking into account the amount outstanding and
the rate applicable.

(d) Employee Benefits
(i) Short-term employee benefits are recognized as an expense at the undiscounted
Amount in the Statement of Profit and Loss of the year in which the employee has
rendered services.
(ii) For defined-benefit plans, the amount recognized in the Balance Sheet is the present
value of the defined-benefit obligation less the fair value of any plan assets and any
past service costs not yet recognized. The present value of the defined-benefit
obligation is the present value of expected future payments required to settle the
obligation resulting from employee service in the current and prior periods. The
discount rate used is the market yields on government bonds at the Balance Sheet
date with remaining terms to maturity approximating those of the Company's
obligations.
(iii) Other long-term employee benefits are recognized as an expense in the Statement of
Profit and Loss of the year in which the employee has rendered services. Estimated
Liability on account of long-term benefits is discounted to the present value, using
the market yield on Government Bonds, as on the date of Balance Sheet.
(iv) Actuarial gains and losses in respect of Post-Employment and other long-term
benefits are charged to the Statement of Profit and Loss.
(v) In respect of the Employee Separation Scheme, the increase in the net present value
of the future liability for pension payable to employees, who have opted for
retirement under the Employee Separation Scheme of the Company, is charged to
the Statement of Profit and Loss.

(e) Tangible Assets
Tangible assets are stated at cost less accumulated depreciation and net of impairment, if any.
Pre-operation expenses including trial run expenses (net of revenue) are capitalized. Borrowing
costs during the period of construction is added to the cost of eligible tangible assets.
Major expenses on relining of furnace are capitalized. The written down value of the asset
consisting of lining/relining expenditure embedded in the cost of the furnace is written off in
the year of fresh relining.
(f) Intangible Assets
Intangible assets are stated at cost less accumulated amortization and net of impairments, if
any. An intangible asset is recognized if it is probable that the expected future economic
benefits that are attributable to the asset will flow to the Company and its cost can be measured
reliably. Intangible assets having finite useful lives are amortized on a straight-line basis over
their estimated useful lives.
(g) Depreciation and Amortization
Depreciation is provided on a straight line basis over the useful lives of assets, which is as
Stated in Schedule II of Companies Act 2013 or based on technical estimate made by the
Company. However, assets value up to Rs 25,000 are fully depreciated in the year of
acquisition. The details of estimated life for each category of asset are as under:
(i) Buildings - 30 to 60 years
(ii) Roads - 5 years
(iii) Plant and Machinery used in manufacturing of Steel - 20 years*
(iv) Other Plant and Machinery - 6 to 40 years*
(v) Railway Sidings - 20 years*
(vi) Vehicles and Aircraft - 5 to 20 years
(vii) Furniture, Fixtures and Office Equipments - 4 to 6 years
(viii) Computer Software - 5 years
(ix) Assets covered under Electricity Act (life as prescribed under the Electricity Act) —
3 to 34 years.

(x) Development of property for development of mines and collieries are amortized over
the useful life of the mine or lease period whichever is less, subject to maximum of
10 years.
(xi) Major furnace relining expenses are depreciated over a period of 10 years (average
expected life).
(xii) Freehold land is not depreciated.
(xiii) Leasehold land and other leasehold assets are amortized over the life of the lease.
*For these class of assets, based on internal assessment and independent technical
evaluation carried out by external valuers the Company believes that the useful lives as given
above best represent the period over which Company expects to use these assets. Hence the
useful lives for these assets are different from the useful lives as prescribed under Part C of
Schedule II of the Companies Act 2013.
(h) Impairment
Fixed assets are reviewed for impairment whenever events or changes in circumstances
indicate that their carrying amount may not be recoverable.
An impairment loss is recognized in the Statement of Profit and Loss if the carrying amount of
an asset exceeds its recoverable amount. Recoverable amount is the higher of an asset''s net
selling price and value in use.
An impairment loss recognized on asset is reversed when the conditions warranting impairment
provision no longer exists.
(i) Foreign Currency Transactions
Transactions in foreign currency are recorded at the rate of exchange prevailing on the date of
transaction. Year-end balance of foreign currency monetary item is translated at the year-end
rates. Exchange differences arising on settlement of monetary items or on reporting of
monetary items at rates different from those at which they were initially recorded during the
period or reported in previous financial statements are recognized as income or expense in the
period in which they arise.
The Company has elected to account for exchange differences arising on reporting of long-
term foreign currency monetary items in accordance with Companies (Accounting Standards)
Amendment Rules, 2009 pertaining to Accounting Standard 11 (AS-11) notified by
Government of India on 31st March, 2009 (as amended on 29th December, 2011). Accordingly,

the effect of exchange differences on foreign currency loans of the Company is accounted by
addition or deduction to the cost of the assets so far it relates to depreciable capital assets and
in other cases by transfer to Foreign Currency Monetary Item Translation Difference Account
to be amortized over the balance period of the long-term monetary items.
Exchange differences relating to monetary items that are in substance forming part of the
Company's net investment in non- integral foreign operations are accumulated in Foreign
Exchange Fluctuation Reserve Account.
Foreign currency monetary items that are used as hedge instruments or hedged items are
accounted as per accounting policy on derivative financial instruments.
(j) Derivative Financial Instruments
The Company uses derivative financial instruments such as forwards, swaps, options, etc.
to hedge its risks associated with foreign exchange fluctuations. Such Derivative financial
instruments are used as risk management tools and not for speculative purposes.
(i) Derivative financial instruments entered into for hedging foreign exchange risks of
recognized foreign currency monetary items are accounted for as per the principles laid
down in Accounting Standard -11 The effects of changes in Foreign Rates.
(ii) For derivative financial instruments and foreign currency monetary items designated as
Cash Flow hedges, the effective portion of the fair value of the derivative financial
instruments are recognized in Cash Flow Hedge Reserve and reclassified in the period
in which the Statement of Profit and Loss is impacted by the hedged items. In cases
where the exposure gives rise to a non-financial asset, the effective portion is
reclassified from Hedging Reserve to the initial carrying amount of the non-financial
asset as a ''basis adjustment'' and recycled to the Statement of Profit and Loss when the
respective non-financial asset affects the Statement of Profit and Loss in future periods.
The ineffective portion of the change in fair value of such instruments is recognised in
the Statement of Profit and Loss in the period in which they arise. Hedge accounting is
discontinued when the hedging instrument expires or is sold, terminated, or exercised,
or no longer qualifies for hedge accounting. For forecasted transactions, any cumulative

gain or loss on the hedging instrument recognized in Cash Flow Hedge Reserve is
retained there until the forecasted transaction occurs .If the forecasted transaction is no
longer expected to occur, the net cumulative gain or loss recognized in Cash Flow
Hedge Reserve is immediately transferred to the Statement of Profit and Loss. If no
hedging relationship is designated, the fair value of the derivative financial instruments
is marked to market through the Statement of Profit and Loss.
(k) Investments
Long-term investments are carried at cost less provision for diminution other than temporary,
if any, in value of such investments. Current investments are carried at lower of cost and fair
value.
(l) Inventories
Finished and semi-finished products produced and purchased by the Company are carried at
lower of cost and net realisable value. Work-in-progress is carried at lower of cost and net
realisable value.
Coal, iron ore and other raw materials produced and purchased by the Company are carried at
Lower of cost and net realisable value. Stores and spare parts are carried at cost. Necessary
provision is made and expensed in case of identified obsolete and non- moving items.
Cost of inventories is generally ascertained on the ''weighted average'' basis. Work-in-progress
and finished and semi-finished products are valued on full absorption cost basis.
(m) Relining Expenses
Relining expenses other than major expenses on furnace relining are charged as an expense in
the Statement of Profit and Loss in the year in which they are incurred.
(n) Research and Development
Research and Development costs (other than cost of fixed assets acquired) are charged as an
Expense in the Statement of Profit and Loss in the year in which they are incurred.

(o) Deferred Tax
Deferred Tax is accounted for by computing the tax effect of timing differences, subject to
the consideration of prudence in respect of deferred tax assets, which arise during the year
and reverse in subsequent periods. Deferred tax is measured at substantively enacted tax rates
by the Balance Sheet date.
(a) 20 Ordinary Shares of face value Rs.10 per share allotted on 1st
December, 2014 at a
premium of Rs 290 per share to shareholders whose shares were kept in abeyance
in the Rights issue made in 2007.
(2) 14 Ordinary Shares offace value 10 per share allotted on 1st
December, 2014at a premium
ofRs 590 per shareto holders of Cumulative Convertible Preference Shares in the ratio of 6:1
on conversion whose shares were kept in abeyance in the Rights issue made in 2007.
(b) 176OrdinarySharesoffacevalueofRs 10 pershareallotted on11th March, 2014ata
premium ofRs 290 pershareto shareholders whose shares were kept in abeyance in
the Rights issue made in 2007.
(c) The balance Ordinary Shares kept in abeyance are 3,01,183 (31.03.2014:3,01,218) in
respect of Rights issue of 2007.
(3) Particulars of securities convertible into Ordinary Shares:
In November 2009, the Company had issued 5,469.35 numbers of 4.5% Foreign Currency
Convertible Bonds (FCCBs) of face value USD 0.1 million each aggregating to USD 546.935
million. As on 30th September, 2014, these represented 4,33,51,989 (31.3.2014: 4,28,28,141)
underlying shares and are convertible at any time on or after 31st December, 2009 and up to
11th November, 2014 by the holders of such FCCBs at a conversion price of Rs 584.8845 per
share (31.3.2014: Rs 592.0385 per share) and at a fixed USD/INR conversion rate of 46.36.
Since, the FCCBs holders did not exercise the option of conversion until 11th November, 2014,
the FCCBs were redeemed on 20th November, 2014 at an aggregate amount Rs 3,381.22
crores.

(4) 1,79,07,847 shares (31.03.2014:2,88,75,320 shares) of face value of Rs 10 per share
represent the shares underlying GDRs which were issued during 1994 and 2009. Each GDR
represents one underlying Ordinary Share.
(5) The rights, powers and preferences relating to each class of share capital and the
qualifications, limitations and restrictions thereof are contained in the Memorandum and
Articles of Association of the Company. The principal rights are as follows:
A. Ordinary Shares of Rs 10 each
(a) In respect of every Ordinary Share (whether fully paid or partly paid), voting right shall
be in the same proportion as the capital paid up on such Ordinary Share bears to the
total paid up Ordinary Capital of the Company.
(b) The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim
dividend.
(c) In the event of liquidation, the shareholders of Ordinary Shares are eligible to receive
the remaining assets of the Company after distribution of all preferential amounts, in
proportion to their shareholding.
B. ''A'' Ordinary Shares of Rs 10 each
(a) (i) The holders of ''A'' Ordinary Shares shall be entitled to such rights of voting and/or
dividend and such other rights as per the terms of the issue of such shares, provided
always that:
- in the case where a resolution is put to vote on a poll, such differential voting entitlement
(excluding fractions, if any) will be applicable to holders of ''A'' Ordinary Shares.
- in the case where a resolution is put to vote in the meeting and is to be decided on a show of
hands, the holders of ''A'' Ordinary Shares shall be entitled to the same number of votes as
available to holders of Ordinary Shares.

(ii) The holders of Ordinary Shares and the holders of ''A'' Ordinary Shares shall vote as a single
class with respect to all matters submitted for voting by shareholders of the Company and shall
exercise such votes in proportion to the voting rights attached to such shares including in
relation to any scheme under Sections 391 to 394 of the Companies Act, 1956.
(b) The holders of ''A'' Ordinary Shares shall be entitled to dividend on each ''A'' Ordinary
Share which may be equal to or higher than the amount per Ordinary Share declared by
the Board for each Ordinary Share, and as may be specified at the time of the issue.
Different series of ''A'' Ordinary Shares may carry different entitlements to dividend to
the extent permitted under applicable law and as prescribed under the terms applicable
to such issue.
C. Preference Shares
The Company has two classes of preference shares i.e. Cumulative Redeemable Preference
Shares (CRPS) of '' 100 per share and Cumulative Convertible Preference Shares (CCPS) of ''
100 per share.
(a) Such shares shall confer on the holders thereof, the right to a fixed preferential dividend
from the date of allotment, at a rate as may be determined by the Board at the time of the issue,
on the capital for the time being paid up or credited as paid up thereon.
(b) Such shares shall rank for capital and dividend (including all dividend undeclared up to the
commencement of winding up) and for repayment of capital in a winding up, pari passu inter
se and in priority to the Ordinary Shares of the Company, but shall not confer any further or
other right to participate either in profits or assets. However, in case of CCPS, such preferential
rights shall automatically cease on conversion of these shares into Ordinary Shares.
(c) The holders of such shares shall have the right to receive all notices of general meetings of
the Company but shall not confer on the holders thereof the right to vote at any meetings of the
Company save to the extent and in the manner provided in the Companies Act, 1956, or any
re-enactment thereof.

(d) CCPS shall be converted into Ordinary Shares as per the terms, determined by the Board
at the time of issue; as and when converted, such Ordinary Shares shall rank pari passu with
the then existing Ordinary Shares of the Company in all respects.
(b) The amount recognised in Cash Flow Hedge Reserve is expected to impact Statement of
Profit and Loss within the next one year.
(c) Ineffective portion taken to Statement of Profit and Loss during the year Rs 0.44 crore
(31.03.2014: Rs 0.21 crore).
(2) The Company has elected to account for exchange differences arising on reporting of long-
term foreign currency monetary item in accordance with Companies (Accounting Standards)
Amendment Rules 2009 pertaining to Accounting Standard 11 (AS-11) notified by
Government of India on 31st March, 2009 (as amended on 29th December, 2011) which allows
foreign exchange differences on long-term monetary items arising on or after 1st April, 2011
to be capitalised to the extent they relate to acquisition of depreciable assets and in other cases
to amortise over the balance period of the respective monetary items. As on 31st March, 2015,
Rs 0.12 crore (31.03.2014: Rs 276.75 crores) remains to be amortised in the Foreign Currency
Monetary Item Translation Difference Account.
(3) During the year, the Company has revised depreciation rate on certain fixed assets as per
the useful life specified in the Companies Act, 2013 or re-assessed by the Company based on
technical evaluation. Accordingly, depreciation of Rs 127.80 crores (net of deferred tax of Rs
67.64 crores) on account of assets with no remaining useful life as on 1st April, 2014 has been
adjusted to retained earnings.
Had there been no change in useful life of assets, depreciation for the year ended 31st March,
2015 would have been higher by Rs 34.87 crores.
(1) The Company had issued Hybrid Perpetual Securities of Rs 775.00 crores and Rs 1,500.00
crores in May 2011and March 2011 respectively.
These securities are perpetual in nature with no maturity or redemption and are callable only
at the option of the Company. The distribution on these securities are 11.50% p.a. and 11.80%
p.a. respectively, with a step up provision if the securities are not called after 10 years. The
distribution on the securities may be deferred at the option of the Company if in the six months

preceding the relevant distribution payment date, the Company has not made payment on, or
repurchased or redeemed, any securities ranking pari passu with, or junior to the instrument.
As these securities are perpetual in nature and the Company does not have any redemption
obligation, these are not classified as''debt''
(1) Details of outstanding secured borrowings are as follows:
(a) Loan from Joint Plant Committee - Steel Development Fund which includes funded interest
Rs 593.03 crores (31.03.2014: Rs 488.32 crores). It is repayable in 16 equal semi-annual
installments after completion of 4 years from the date of receipt of the last tranche.
It is secured by mortgages on, all present and future immovable properties wherever situated
and hypothecation of movable assets, excluding land and building mortgaged in favor of
Government of India under the deed of mortgage dated 13th April, 1967 and in favor of
Government of Bihar under two deeds of mortgage dated 11th May, 1963, immovable
properties and movable assets of the Tube Division, Bearing Division, Ferro Alloys Division
and Cold Rolling Complex (West) at Tarapur and all investments and book debts of the
Company subject to the prior charges created and/or to be created in favour of the bankers for
securing borrowing for the working capital requirement and charges created and/or to be
created on specific items of machinery and equipment procured/to be procured under Deferred
Payment schemes/Bill Re-discounting schemes/Asset Credit schemes.
The Company has filed a writ petition before the High Court at Kolkata in February 2006
claiming waiver of the outstanding loan and interest and refund of the balance lying with Steel
Development Fund and the matter is sub-judice.
Loan from the Joint Plant Committee-Steel Development Fund includes Rs 1,639.33 crores
(31.03.2014: Rs 1,599.73 crores) representing repayments and interest on earlier loans for
which applications of funding are awaiting sanction is not secured by charge on movable assets
of the Company.

3.Corporate Governance
COMPANY'S CORPORATE GOVERNANCE PHILOSOPHY
Corporate governance is creation and enhancing long-term sustainable value for the
stakeholders through ethically driven business process. At Tata Steel, it is imperative that
Company affairs are managed in a fair and transparent manner. At Tata Steel, ensure that they
evolve and follow the corporate governance guidelines and best practices. We consider it our
inherent responsibility to disclose timely and accurate information regarding our financials and
performance as well as the leadership and governance of the Company. In accordance with the
Tata Steel Group Vision, Tata Steel Group (‘the Group’) aspires to be the global steel industry
benchmark for value creation and corporate citizenship. The Group expects to realize its Vision
by taking such actions as may be necessary in order to achieve its goals of -value creation,
safety, environment and people.
CORPORATE GOVERNANCE GUIDELINES
The Board has adopted the Tata Group Guidelines on Board Effectiveness to help fulfil its
corporate governance responsibility towards stakeholders. These guidelines ensure that the
Board will have the necessary authority and processes in place to review and evaluate the
Company's operations. Further, these guidelines allow the Board to make decisions that are
independent of the Management. The Board of Directors (‘the Board’) is at the core of our
corporate governance practice and oversees how the Management serves and protects the long-
term interests of all our stakeholders. There are different committee working in Tata steel Ltd.
Such as Nomination and Remuneration Committee, Risk Management Committee, Corporate
Social Responsibility Committee, Executive Committee of the Board, Ethics and Compliance
Committee, Safety, Health and Environment Committee etc.
BOARD OF DIRECTORS
The Board of Directors (‘the Board’) is at the core of our corporate governance practice and
oversees how the Management serves and protects the long-term interests of all our
stakeholders. We believe that an active, well-informed and independent Board is necessary to
ensure the highest standards of corporate governance. The current policy is to have an
appropriate mix of Executive, Non-Executive and Independent Directors (IDs) to maintain the
independence of the Board, and separate its functions of governance and management.

Currently, the Board consists of twelve members, two of whom are Executive or Whole-time
Directors (ED), four Non-Executive Directors (NED) and six IDs including a Woman Director.
The number of NEDs is more than fifty per cent of the total number of Directors. The Board
periodically evaluates the need for change in its composition and size. Detailed profile of our
Directors is available on our website: www.tatasteel.com. None of the NEDs serve as IDs in
more than seven listed companies and none of the Executive or Whole-time Directors serve as
IDs on any listed company.
Dematerialization of shares and liquidity
Tata Steel shares are tradable compulsorily in electronic form. We have established
connectivity with both the depositories, that is, National Securities Depository Limited
(NSDL) and Central Depository Services (India) Limited (CDSL). The International
Securities Identification Number (ISIN) allotted to the shares under the Depository System is
INE081A01012. 94,01,69,546 Ordinary Shares of the Company representing 96.80% of the
Company’s share capital is dematerialized as on 31 March, 2015. To enable us to serve our
shareholders better, we request shareholders whose shares are in physical mode to
dematerialize shares and to update their bank accounts with their respective depository
participants.
Share Transfer System
Share Transfers in physical form can be lodged with TSR Darashaw Limited. The transfers
are normally processed within 15 days from the date of receipt if the documents are complete
in all respects.

4.Corporate Social Responsibility(CSR)
Brief outline of the Corporate Social Responsibility (CSR) Policy
The Company’s CSR is in alignment with the Tata Group focus initiatives – Education, Health,
Livelihoods and Rural and Urban infrastructure. Besides, it also undertakes interventions in the
areas of sports, disaster relief, environment and ethnicity all aimed at improving the quality of
life of the communities. Key achievements in Financial Year 2014-15 is given below.
Composition of CSR Committee of the Board
The CSR Committee of the Board comprises Mr. Ishaat Hussain (Chairman), Mr. O. P. Bhatt,
Mr. D. K. Mehrotra, Mr. Koushik Chatterjee and Mr. T. V. Narendran. The Company has also
set up a CSR Advisory Council. The council comprises 12 members, all of whom are eminent
personalities from academia and the development sector. The members of the Advisory
Council, with their years of experience and multi-functional expertise, provide macro policy-
level inputs to the CSR Committee and guide the Company’s approach towards CSR.
CSR activities, as per the Companies Act, 2013, may be undertaken by the Company through
a registered trust or a registered society. The Company undertakes the activities either directly
or in collaboration with the following delivery arms: Tata Steel Rural Development Society
(TSRDS), a registered society under Societies Registration Act, 1860. The principal aim and
objective of the society is to undertake, promote, sponsor, assist or aid directly any
activity/project/programme for the promotion and growth of the rural economy, rural welfare,
socio-economic development and upliftment of the people in rural areas. Tribal Cultural
Society (TCS), a registered society under Societies Registration Act, 1860. The main objective
of the society is to promote and undertake cultural activities, cultural education and training of
the various tribes. Tata Steel Skill Development Society (TSSDS), a registered society under
Societies Registration Act, 1860. The main aim and object of the society is to provide facilities
for technical and other skill enhancement trainings within the nation. Tata Steel Family
Initiatives Foundation (TSFIF), a registered trust under Indian Trusts Act, 1882. The objective
of the trust is to undertake projects/programmes on reproductive health, prevention of drug or
alcohol addiction and empowerment of women through literacy and income generation.

(A) Education and Training
Education: In the adult literacy programme, over 15,000 adults were made functionally literate
while nearly 13,000 middle and high school students in areas of operation benefi tted from the
preparatory coaching classes on English, Math and Science. Nearly 49,000 students in 383
government schools were covered under the mid-day meal scheme. For honing spoken English
skills and soft skills of students, skill development centres in partnership with NIIT Foundation
were set up at diff erent locations in Kalinganagar. Moreover, nearly 1,000 school dropouts
were able to continue their studies by getting enrolled in the Company sponsored bridge
courses.
Schools Project: Conceptualised to improve the quality of education in the government
primary schools across six blocks of Jajpur, Keonjhar and Sundergarh districts of Odisha. The
project is to be implemented in 1,000 schools over five years. 100 schools have been reached
out to in the first year of implementation.
Scholarships: In Financial Year 2014-15, Jyoti Fellowship was given to over 3,400
meritorious students from the
SC/ST communities across Jharkhand, Chhattisgarh and Odisha. We also launched a new
scholarship programme –‘Tata Steel Scholars’. Tata Steel Scholars is aimed at supporting
bright SC/ST students in pursuing professional courses from reputed institutes. So far, around
50 students have been supported under this initiative to pursue higher studies in reputed
professional institutes across India.
Skilling Youth: Skill development of youth is a major thrust area of Company’s CSR. In
Financial Year 2015, we partnered with several organisations to set up skill development
centres. Some highlights include:
1.Setting up of Tata Steel Technical Institute at Burmamines, Jamshedpur in partnership with
Nettur Technical Training Foundation and off ering full time diploma courses in two branches,
i.e., Mechatronics and Electrical & Electronics. 2. In addition to a hospitality training centre
set up with Indian Hotels and Pratham at Kolebira near Jamshedpur, we in collaboration with
Government of Odisha also set up ‘PACE Skill Training Centre’ at Seregada near Gopalpur.
3. More than 200 girls from left-wing extremist areas being trained on health sector skills (B.Sc.
Nursing, ANM, GNM, Ophtalmic Nursing etc.) at various institutes across India. In Financial

Year 2014-15, over 3,500 youth were trained in various skill development programmes across
locations.
(B) Rural Developments
Samvaad: A Tribal Conclave: The Company in November 2014 organised ‘Samvaad’, a four-
day pan-India tribal conclave in Jamshedpur that brought thought leaders, academicians,
cultural performers and activists on one platform. The conclave was attended by nearly 1,500
people from 19 states of India. It showcased panel discussions on topics such as tribal
livelihoods, particularly vulnerable tribal groups, cultural performances, documentary film
screenings and handicrafts exhibition.
Market Yard: Started in January 2014 in partnership with MART, it provides a common
platform for both farmers and traders and is aimed at helping farmers market their agriculture
produce at a fair price. In Financial Year 2014-15, more than 3,000 tonnes of vegetables were
traded with a turnover of ₹ 3 crores through the farmer cooperative 'Unnat Phal Sabji Utpadak
Sahyog Samiti Limited', Patamda.
Agriculture: With focussed interventions in agriculture, we provided livelihood opportunities
to nearly 6,000 farmers through agriculture development. For instance, we popularized System
of Rice Intensifi cation (SRI) to increase paddy productivity as well as acreage under second
and third cropping to nearly 4,500 acres. Using participatory method, we engaged community
based organizations in construction of 366 ponds that will boost irrigation and reduce farmers’
dependency on monsoon.
Renewable Energy: Under the solar street light project, over 1,400 solar street lights were
installed in villages of Jharkhand and Odisha.
Ethnicity: We work on various facets of tribal culture, including tribal music and dance. This
includes interventions to preserve and promote tribal languages, literature and folklore (teach
tribal scripts, publish tribal literature, etc.) and tribal sports (Kati, Sekkor etc.). During the year,
nearly 15,000 youth learned tribal scripts for Ho, Santhali and Oraon languages. More than
5,000 players participated in various grass root level tribal sports tournaments organized in
villages of Jharkhand and Odisha.
(C) Health
Hospitals in Odisha: Work is underway for a 500-bedded hospital at Gopalpur and a 200-
bedded multi-speciality hospital in Kalinganagar. We have also signed a MoU with Sankara
Eye Hospital to set up a 100-bedded Super Speciality Eye Care Hospital in Ganjam.

Newborn Health: Project MANSI on maternal and newborn survival, which is underway in
167 villages of Seraikela district, has brought down infant mortality rate by 26.5% and neonatal
mortality rate by 32.7%, over four years of implementation. The project will be scaled up in
the districts of Seraikela-Kharsawan (8 blocks) and West Singhbhum (2 blocks) in Jharkhand
and Keonjhar district (2 blocks) of Odisha.
Adolescent Health: Project RISHTA on adolescent health was implemented in 736 villages
across 14 blocks and 7 districts of Jharkhand and Odisha. During the year, more than 47,000
adolescents were covered to enable them to make informed decisions and choices about their
sexual an reproductive health.
(D) Sports
Youth Empowerment: Community Sports is one of the key strategies used to empower youth
in the hinterlands. It also helps to identify and nurture talent among the rural communities. In
this regard, the Company organized several sports tournaments and conducted training camps.
Tata Steel took the lead to organize a joint Tata Group tournament involving Tata Motors, Tata
Power and Tinplate for athletics, archery as well as football. During the year, the football
tournament witnessed participation of 22,000 tribal youth from 1,500 teams, whereas nearly
7,500 youth participated in archery and hockey tournaments. To encourage girl participation
in sporting activities, for the first time, a football tournament for 32 Kasturba Gandhi Baalika
Vidyalaya (KGBV) schools was organized in which a total of 64 teams comprising girls in
Under-14 and Open category participated.

5.Financial Statement Analysis
(A) Ratio Analysis
LIQUIDITY RATIO FORMULA Mar'15 Mar'14 Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Mar '06
12months 12months 12months 12months 12months 12months 12months 12months 12months12months
Current Ratio Current Assets 58,712.03 64,821.60 61,370.54 63,347.94 62,223.35 43,982.64 53,947.35 65,383.18 19,433.30 6,675.62
Current Liabilities 54,293.39 58,687.18 53,796.43 50,892.51 44,472.83 32,715.36 33,078.97 40,302.43 10,417.18 7,529.79
Answer 1.08 1.10 1.14 1.24 1.40 1.34 1.63 1.62 1.87 0.89
Quick Ratios Current Assets-Stock 33,562.12 37,941.60 37,279.35 37,749.94 38,168.11 25,296.00 32,278.65 42,318.84 15,545.17 3,902.31
Current Liabilities 54,293.39 58,687.18 53,796.43 50,892.51 44,472.83 32,715.36 33,078.97 40,302.43 10,417.18 7,529.79
Answer 0.62 0.65 0.69 0.74 0.86 0.77 0.98 1.05 1.49 0.52
Debt Equity Ratios Total Debt 71,578.88 70,667.59 57,247.18 52,212.32 54,545.13 53,100.35 59,900.50 53,592.75 24,925.53 3,377.43
Share Holder Equity(Networth) 31,369.41 40,551.96 34,193.45 42,656.11 35,581.37 23,038.30 27,260.08 34,191.44 14,639.66 10,281.84
Answer 2.28 1.74 1.67 1.22 1.53 2.30 2.20 1.57 1.70 0.33
Long term Debt Equity Ratio Debg(Long Term Debt) 69,875.03 68,929.87 55,577.82 51,121.17 53,656.23 52,216.28 59,005.62 52,760.05 24,327.14 3,253.86
Share Holder Equity(Netwoth) 31,369.41 40,551.96 34,193.45 42,656.11 35,581.37 23,038.30 27,260.08 34,191.44 14,639.66 10,281.84
Answer 2.23 1.70 1.63 1.20 1.51 2.27 2.16 1.54 1.66 0.32
PROFITABILITY RATIO
Operating Profit Margin(%) Operating Sale *100 12,535.75 16,411.01 12,321.21 12,416.79 16,746.67 8,267.51 18,174.64 18,309.70 7,724.39 6,338.74
Net Sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Answer 8.99 11.04 9.15 9.34 14.10 8.08 12.33 13.92 30.75 31.31
PBIT(%) PBIT(PBDIT-Depreciation) *100 3,459.66 11,058.96 -164.84 12,835.09 16,057.73 3,713.91 10,550.75 21,099.42 7,054.28 5,691.52
Net Sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Answer 2.48 7.44 -0.12 9.66 13.52 3.63 7.16 16.05 28.08 28.11
Gross Profit Margin(%) Gross Profit *100 11,898.61 18,685.15 12,233.33 13,173.62 20,759.29 5,945.49 18,754.94 36,595.38 8,298.99 9,065.05
Net Sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Answer 8.53 12.57 9.08 9.91 17.48 5.81 12.73 27.83 33.04 44.78
Cash Profit Margin(%) PAT+Depriciation *100 1,988.10 9,505.19 -1,787.07 9,465.17 13,270.87 2,370.89 9,114.63 16,458.71 5,176.59 4,581.44
Net Sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Answer 1.43 6.40 -1.33 7.12 11.18 2.32 6.19 12.52 20.61 22.63
Net Profit Margin(%) Net Profit *100 -3,955.50 3,663.97 -7,362.39 4,948.52 8,856.05 -2,120.84 4,849.24 12,321.76 4,165.61 3,721.07
Net Sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Answer -2.84 2.47 -5.47 3.72 7.46 -2.07 3.29 9.37 16.58 18.38
Return on Capital Employed(%) EAT+Interest *100 892.25 8,000.80 -3,394.28 9,198.63 12,811.83 1,538.93 8,639.93 16,910.40 4,801.28 3,927.48
Total Assets 104,652.14 112,957.27 93,109.99 95,959.58 91,015.40 77,022.72 88,055.46 88,616.89 40,163.58 13,782.84
Answer 0.85 7.08 -3.65 9.59 14.08 2.00 9.81 19.08 11.95 28.50
Return on Net Worth(%) Net Profit *100 -3,955.50 3,663.97 -7,362.39 4,948.52 8,856.05 -2,120.84 4,849.24 12,321.76 4,165.61 3,721.07
Networth 31,369.41 40,551.96 34,193.45 42,656.11 35,581.37 23,038.30 27,260.08 34,191.44 14,639.66 10,281.84
Answer -12.61 9.04 -21.53 11.60 24.89 -9.21 17.79 36.04 28.45 36.19
Return on Long Term Fund(%) Net PBIT *100 3,459.66 11,058.96 -164.84 12,835.09 16,057.73 3,713.91 10,550.75 21,099.42 7,054.28 5,691.52
Long Term Fund 104,652.14 112,957.27 93,109.99 95,959.58 91,015.40 77,022.72 88,055.46 88,616.89 40,163.58 13,782.84
Answer 3.31 9.79 -0.18 13.38 17.64 4.82 11.98 23.81 17.56 41.29

INVESTMENTVALUATION RATIO
Operating Profit Per Share(Rs.) Operating Profit *100 12,535.75 16,411.01 12,321.21 12,416.79 16,746.67 8,267.51 18,174.64 18,309.70 7,724.39 6,338.74
Share in Issue 9,712.15 9,712.15 9,712.15 9,712.14 9,585.43 8,865.43 7,299.21 7,299.13 5,798.01 5,528.01
Answer 129.07 168.97 126.86 127.85 174.71 93.26 248.99 250.85 133.22 114.67
DEBTCOVERAGE RATIO
Interest Cover EBIT 3,459.66 11,058.96 -164.84 12,835.09 16,057.73 3,728.63 10,565.76 21,089.02 7,116.75 5,747.80
Interest 4,847.75 4,336.83 3,968.11 4,250.11 3,955.78 3,659.77 3,790.69 4,588.64 635.67 206.41
Answer 0.71 2.55 -0.04 3.02 4.06 1.02 2.79 4.60 11.20 27.85
Total Debt to Owners Fund Total Debt 71,578.88 70,667.59 57,247.18 52,212.32 54,545.13 53,100.35 59,900.50 53,592.75 24,925.53 3,377.43
Share Holder Equity 31,369.41 40,551.96 34,193.45 42,656.11 35,581.37 23,038.30 27,260.08 34,191.44 14,639.66 10,281.84
Answer 2.28 1.74 1.67 1.22 1.53 2.30 2.20 1.57 1.70 0.33
MANAGEMENTEFFICIENCY RATIO
Inventory TurnoverRatio Net sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Inventory 25,149.91 26,880.00 24,091.19 25,598.00 24,055.24 18,686.64 21,668.70 23,064.34 3,888.13 2,773.31
Answer 5.55 5.53 5.59 5.19 4.94 5.47 6.80 5.70 6.46 7.30
Debtors TurnoverRatio Net Sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Avg Debtors 14,657.82 14,999.87 14,436.22 14,845.20 13,217.94 12,327.79 15,863.98 10,191.43 1,452.63 609.36
Answer 9.52 9.91 9.33 8.95 8.98 8.30 9.29 12.90 17.29 33.22
Fixed Assets TurnoverRatio Net Sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Gross Block 160,654.90 169,195.78 145,774.34 128,925.72 112,147.38 111,830.82 114,823.59 114,279.31 20,303.44 16,744.68
Answer 0.87 0.88 0.92 1.03 1.06 0.91 1.28 1.15 1.24 1.21
Total Assets TurnoverRatio Net Sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Total Assets 104,652.14 112,957.27 93,109.99 95,959.58 91,015.40 77,022.72 88,055.46 88,616.89 40,163.58 13,782.84
Answer 1.33 1.32 1.45 1.38 1.30 1.33 1.67 1.48 0.63 1.47
PROFIT& LOSS ACC. RATIO
Material CostComposition Material cost *100 66,451.96 75,246.20 68,955.31 74,555.02 61,180.08 51,855.32 82,457.46 68,159.81 10,353.64 7,460.93
Net sales 139,503.73 148,613.55 134,711.54 132,899.70 118,753.12 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43
Answer 47.63 50.63 51.19 56.10 51.52 50.69 55.95 51.83 41.22 36.85
CASHFLOW INDICATORRATIO
EarningRetentionRatio NetProfit-Equity Dividend *100 -4,732.47 2,692.76 -8,139.36 3,783.06 7,705.80 -2,830.07 3,681.36 11,153.90 3,222.74 3,002.43
NetProfit -3,955.50 3,663.97 -7,362.39 4,948.52 8,856.05 -2,120.84 4,849.24 12,321.76 4,165.61 3,721.07
Answer 119.64 73.49 110.55 76.45 87.01 133.44 75.92 90.52 77.37 80.69

TOTALCASHFLOW INDICATORRATIO
Earning PerShare Net Profit *100 -3,955.50 3,663.97 -7,362.39 4,948.52 8,856.05 -2,120.84 4,849.24 12,321.76 4,165.61 3,721.07
No. of Share 9,712.15 9,712.15 9,712.15 9,712.14 9,585.43 8,865.43 7,299.21 7,299.13 5,798.01 5,528.01
Answer -40.73 37.73 -75.81 50.95 92.39 -23.92 66.44 168.81 71.85 67.31
BookValue Networth *100 31,369.41 40,551.96 34,193.45 42,656.11 35,581.37 23,038.30 27,260.08 34,191.44 14,639.66 10,281.84
No. of Share 9,712.15 9,712.15 9,712.15 9,712.14 9,585.43 8,865.43 7,299.21 7,299.13 5,798.01 5,528.01
Answer 322.99 417.54 352.07 439.20 371.20 259.87 373.47 468.43 252.49 186.00

(B) Trend Analysis
LIQUIDITY RATIO
Comment: Current ratio of the company increase
after 2006 and in 2007 the ratio is maximum. It
indicate that liabilities of company is around 1.4
compare to inventories, Credit sale of company.
Tata Steel maintain balance after 2009.
Comment: Quick ratio show that in 2006 it’s
very low in 2007 but its increase and then after it
remain constant around 0.70. A class of financial
metrics that is used to determine a company's
ability to pay off its short-terms debts obligations.
Generally, the higher the value of the ratio, the
larger the margin of safety that the company possesses to cover short-term debts the overall
liquidity and solvency ratio shows that the company using its liability more than the asset’s.
That’s why the line goes down from 2011 to 2015.
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13 Mar '14 Mar '15
Current Ratio 0.89 1.87 1.62 1.63 1.34 1.40 1.24 1.14 1.10 1.08
Quick Ratio 0.52 1.49 1.05 0.98 0.77 0.86 0.74 0.69 0.65 0.62

Comment: Debt Equity ratio is very poor in
2006 but in between 2007 to 2010 its increasing
and again in 2011-2012 its decreasing and then
after once again increasing. It show that
Company debt equity ratio not remain constant.
Its look like in sine wave form.
Comment: Long term debt ratio of tata steel also
look like in sine wave form. It’s very low in 2006
but than its increase between 2007-2010 and then
decrease in 2011-2012 and its higher in 2015 so
its good sign for company.
PROFITABILITY RATIO:
Comment: In 2006-2007 operating profit
margin is Very good but from the 2008 onwards
it’s decreasing very fast but from the 2008 to
2015 its remain constant so its good sign for
TATA STEEL. 2006-2007 is maximum
Operating profit indicate total revenue of the
firm. Income profit is decreasing than industry gross profit also decreases, some where of
indicate its profit is so low company can’t do anything.
Debt Equity Ratio 0.33 1.72 1.87 2.75 2.31 1.54 1.23 1.68 1.74 2.28
Long Term Debt Equity Ratio 0.32 1.66 1.54 2.16 2.27 1.51 1.2 1.63 1.7 2.23
Operating Profit Margin(%) 31.31 30.75 13.92 12.33 8.08 14.1 9.34 9.15 11.04 8.99

Comment: As other ratio Profit before interest
& tax has same value. It has higher value
between 2006-2007 but lefting 2012 it has poor
performance in other years. So, TATA STEEL
to focus on that & how to improve it.
Comment: Gross Profit Margin of TATA
STEEL is very good between 2006-2009 but
it decrease in other years. So TATA STEEL
have need to focus on why it’s decreasing and
how to came out from that so profit increase.
Comment: Cash Profit Margin is very good
from 2006-2008 but it decrease in 2009,2010
and 2015. And it also negative in year 2013
PBIT(%) 28.11 28.08 16.05 7.16 3.63 13.52 9.66 -0.12 7.44 2.48
Gross Profit Margin(%) 44.78 33.04 27.83 12.73 5.81 17.48 9.91 9.08 12.57 8.53
Cash Profit Margin(%) 22.63 20.61 12.52 6.19 2.32 11.18 7.12 -1.33 6.4 1.43

Comment: Net profit is actual position of the
Company. In 2006 to 2009 it In Decreased
order and now negative how can do a
company’s performance when profit is
negative. Profit is indicating business position
of industry performance of the industry.
Comment: Return on capital employed
Current year ratio is very low with compare to
other years while in 2013 it’s negative.
Comment: Return on Net worth is compare
with total shareholder’s fund. In 2015, return
on net worth is negative to compare of past
year.
A class of financial metrics that are used to
assess a business's ability to generate
earnings as compared to its expenses and
other relevant costs incurred during a specific period of time. For most of these ratios, having
Net Profit Margin(%) 18.38 16.58 9.37 3.29 -2.07 7.46 3.72 -5.47 2.47 -2.84
Return on Capital Employed(%) 28.5 11.95 19.08 9.81 2.00 14.08 9.59 -3.65 7.08 0.85
Return on Networth(%) 36.19 28.45 36.04 17.79 -9.21 24.89 11.6 -21.53 9.04 -12.61

a higher value relative to a competitor's ratio or the same ratio from a previous period is
indicative that the company is doing well.
Comment: Return on long term is good. In
2013 long term fund of TATA STEEL is in
negative. Compare Current year with 2014
return on long term fund is low.
INVESTMENT VALUATION RATIO:
Comment: Operating Profit Per Share
of TATA STEEL is very good.
Return on Long Term Fund(%) 41.29 17.56 23.81 11.98 4.82 17.64 13.38 -0.18 9.79 3.31
Operating Profit Per Share(Rs.) 114.67 133.22 250.85 248.99 93.26 174.71 127.85 126.86 168.97 129.07

DEBT COVERAGE RATIO:
Comment: :- Interest coverage ratio
indicate Earning ratio before interest
and tax in compare to interest and
interest earning ratio. how much
interest earn company that depends
on Interest Coverage Ratio.
Comment: In corporate finance, it is
the amount of cash flow available to
meet annual interest and principal
payments on debt, including sinking
fund payments. In government finance,
it is the amount of export earnings
needed to meet annual interest and
principal payments on a country's external debts. It increase continuously.
Interest Cover 27.85 11.2 4.6 2.79 1.02 4.06 3.02 -0.04 2.55 0.71
Total Debt to Owners Fund 0.33 1.7 1.57 2.20 2.30 1.53 1.22 1.67 1.74 2.28

MANAGEMENT EFFICIENCY RATIO:
Comment: Inventory Turnover of
TATA STEEL is very good and it’s
continuously remain constant. So, it
very good for company
Comment: Debtors turnover indicate in
maximum decreasing Order in the year
2007 to 2015 but it remain constant
onward.
Comment: Fixed asset is constant to
increasing Order fixed asset indicate
to total fixed assets of the company.
FST’s ratio is good increased in 2006
to 2009. Then again it decrease the
ratio from 2010 but form that it almost
remain around 1.00
Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
Inventory TurnoverRatio 7.3 6.46 5.7 6.80 5.47 4.94 5.19 5.59 5.53 5.55
Debtors Turnover Ratio 33.22 17.29 12.9 9.29 8.3 8.98 8.95 9.33 9.91 9.52
Fixed Assets TurnoverRatio 1.21 1.24 1.15 1.28 0.91 1.06 1.03 0.92 0.88 0.87

Comment: :- In comparison to net
sales or revenue to Total asset of the
company is help to company Total
asset is total position of the company.
Total position and view so how much
asset as compare to sales of the
company.
PROFILE & LOSS ACCOUNT RATIO:
Comment: Material Cost Composition
ratio in P&L account is remain constant.
Total Assets Turnover Ratio 1.47 0.63 1.48 1.67 1.33 1.30 1.38 1.45 1.32 1.33
Material CostComposition 36.85 41.22 51.83 55.95 50.69 51.52 56.10 51.19 50.63 47.63

CASH FLOW INDICATOR RATIO:
Comment: Earning retention ratio
between 2006 to 2009 around 70.00
Increased in 2010, 2013 & 2015 but then
it again decrease.
TOTAL CASH FLOW INDICATOR RATIO:
Comment: This section of the
financial ratio tutorial looks
at cash flow indicators, which
focus on the cash being generated
in terms of how much is being
generated and the safety net that it
provides to the company.
These ratios can give users another look at the financial health and performance of a company.
At this point, we all know that profits are very important for a company. However, through the
magic of accounting and non-cash-based transactions, companies that appear very profitable
can actually be at a financial risk if they are generating little cash from these profits. For
example, if a company makes a ton of sales on credit, they will look profitable but haven't
actually received cash for the sales, which can hurt their financial health since they have
obligations to pay.
Earning Retention Ratio 80.69 77.37 90.52 75.92 133.44 87.01 76.45 110.55 73.49 119.64
Earning PerShare 67.31 71.85 168.81 66.44 -23.92 92.39 50.95 -75.81 37.73 -40.73

Comment: Book Value is low in
2006-2007 but than it increase from
2008 onwards.
BookValue 186 252.49 468.43 373.47 259.87 371.2 439.2 352.07 417.54 322.99

(C) Comparison With Industry
LIQUID RATIO:
Comment:
Comment:
CurrentRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATA STEEL 0.89 1.87 1.62 1.63 1.34 1.40 1.24 1.14 1.10 1.08
INDUSTRY AVERAGE 2.76 2.44 2.04 1.52 1.63 1.41 1.48 1.34 1.15 1.32
0
1
2
3
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Current Ratio
TATA STEEL INDUSTRY AVERAGE
QuickRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 0.52 1.49 1.05 0.98 0.77 0.86 0.74 0.69 0.65 0.62
0
1
2
3
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Quick Ratio

Comment:
Comment:
DebtEquityRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 0.33 1.72 1.87 2.75 2.31 1.54 1.23 1.68 1.74 2.28
0
1
2
3
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Debt Equity Ratio
LongTermDebtEquityRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 0.32 1.66 1.54 2.16 2.27 1.51 1.2 1.63 1.7 2.23
0
0.5
1
1.5
2
2.5
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Long Term Debt Equity Ratio

PROFITABILITY RATIO:
Comment:
Comment:
0
50
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Operating Profit Margin(%)
OperatingProfitMargin(%) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 31.31 30.75 13.92 12.33 8.08 14.1 9.34 9.15 11.04 8.99
PBIT(%) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 28.11 28.08 16.05 7.16 3.63 13.52 9.66 -0.12 7.44 2.48
-5
0
5
10
15
20
25
30
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
PBIT(%)

Comment:
Comment:
Gross ProfitMargin(%) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 44.78 33.04 27.83 12.73 5.81 17.48 9.91 9.08 12.57 8.53
0
10
20
30
40
50
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Gross Profit Margin(%)
CashProfitMargin(%) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 22.63 20.61 12.52 6.19 2.32 11.18 7.12 -1.33 6.4 1.43
INDUSTRYAVERAGE 12.04 14.96 12.17 11.09 10.43 11.47 9.42 9.48 10.67 8.65
-5
0
5
10
15
20
25
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Cash Profit Margin(%)

Comment:
Comment:
NetProfitMargin(%) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 18.38 16.58 9.37 3.29 -2.07 7.46 3.72 -5.47 2.47 -2.84
-10
-5
0
5
10
15
20
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Net Profit Margin(%)
ReturnonCapitalEmployed(%) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 28.5 11.95 19.08 9.81 2.00 14.08 9.59 -3.65 7.08 0.85
-10
0
10
20
30
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Return on Capital Employed(%)

Comment:
Comment:
ReturnonNetworth(%) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 36.19 28.45 36.04 17.79 -9.21 24.89 11.6 -21.53 9.04 -12.61
-30
-20
-10
0
10
20
30
40
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Return on Networth(%)
ReturnonLongTermFund(%) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 41.29 17.56 23.81 11.98 4.82 17.64 13.38 -0.18 9.79 3.31
-10
0
10
20
30
40
50
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Return on Long Term Fund(%)

INVESTMENT VALUATION RATIO:
Comment:
DEBT COVERAGE RATIO:
Comment:
OperatingProfitPerShare(Rs.) Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 114.67 133.22 250.85 248.99 93.26 174.71 127.85 126.86 168.97 129.07
0
50
100
150
200
250
300
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Operating Profit Per Share(Rs.)
InterestCoverage Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 27.85 11.2 4.6 2.79 1.02 4.06 3.02 -0.04 2.55 0.71
-5
0
5
10
15
20
25
30
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Interest Coverage Ratio

Comment:
MANAGEMENT EFFICIENCY RATIO:
Comment:
TotalDebttoOwnersFund Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 0.33 1.7 1.57 2.20 2.30 1.53 1.22 1.67 1.74 2.28
0
0.5
1
1.5
2
2.5
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Total Debt to Owner Fund
InventoryTurnoverRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 7.3 6.46 5.7 6.80 5.47 4.94 5.19 5.59 5.53 5.55
0
1
2
3
4
5
6
7
8
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Inventory Turnover Ratio

Comment:
Comment:
DebtorsTurnoverRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 33.22 17.29 12.9 9.29 8.3 8.98 8.95 9.33 9.91 9.52
0
5
10
15
20
25
30
35
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Debtors Turnover Ratio
FixedAssetsTurnoverRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 1.21 1.24 1.15 1.28 0.91 1.06 1.03 0.92 0.88 0.87
0
0.5
1
1.5
2
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Fixed Assets Turnover Ratio

Comment:
PROFIT & LOSS ACCOUNT RATIO:
Comment:
TotalAssetsTurnoverRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 1.47 0.63 1.48 1.67 1.33 1.30 1.38 1.45 1.32 1.33
0
0.5
1
1.5
2
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Total Assets Turnover Ratio
MaterialCostComposition Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 36.85 41.22 51.83 55.95 50.69 51.52 56.10 51.19 50.63 47.63
0
10
20
30
40
50
60
70
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Material Cost Composition

CASH FLOW INDICATOR RATIO:
Comment:
TOTAL CASH FLOW INDICATOR RATIO:
Comment:
EarningRetentionRatio Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 80.69 77.37 90.52 75.92 133.44 87.01 76.45 110.55 73.49 119.64
0
20
40
60
80
100
120
140
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Earning Retention Ratio
EarningPerShare Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 67.31 71.85 168.81 66.44 -23.92 92.39 50.95 -75.81 37.73 -40.73
INDUSTRYAVERAGE 50.14 65.21 60.28 34.67 6.02 25.04 16.73 -4.58 13.63 -1.30
-100
-50
0
50
100
150
200
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Earning Per Share

Comment:
BookValue Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
TATASTEEL 186 252.49 468.43 373.47 259.87 371.2 439.2 352.07 417.54 322.99
0
100
200
300
400
500
Mar
'06
Mar
'07
Mar
'08
Mar
'09
Mar
'10
Mar
'11
Mar
'12
Mar
'13
Mar
'14
Mar
'15
Book Value

(D) Common Size Statement
12mths 12mths 12mths 12mths 12mths 12mths 12mths 12mths 12mths 12mths
Sources Of Funds
Total Share Capital 0.95 0.88 1.07 1.04 1.05 1.15 7.04 7.00 1.44 4.01
Equity Share Capital 0.93 0.86 1.04 1.01 1.05 1.15 0.83 0.82 1.44 4.01
Share Application Money 0.00 0.00 0.00 0.02 0.21 0.02 0.02 0.02 0.41 0.00
Preference Share Capital 0.01 0.01 0.01 0.02 0.00 0.00 4.77 4.79 0.00 0.00
Init. Contribution Settler 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Preference Share Application Money 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Stock Opiton 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Reserves 29.03 35.02 35.66 43.40 37.83 28.74 23.89 31.56 34.60 70.59
Networth 29.97 35.90 36.72 44.45 39.09 29.91 30.96 38.58 36.45 74.60
Secured Loans 24.49 27.09 28.97 28.64 28.97 36.43 38.99 39.96 12.35 18.16
Unsecured Loans 43.91 35.48 32.51 25.77 30.96 32.51 29.04 20.51 49.71 6.35
Total Debt 68.40 62.56 61.48 54.41 59.93 68.94 68.03 60.48 62.06 24.50
Minority Interest 1.63 1.54 1.79 1.14 0.98 1.15 1.02 0.94 1.49 0.90
Policy Holders Funds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Group Share in Joint Venture 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Liabilities 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Application Of Funds
Gross Block 153.51 149.79 156.56 134.35 123.22 145.19 130.40 128.96 50.55 121.49
Less: Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Less: Accum. Depreciation 88.44 83.47 83.53 72.57 66.23 78.95 71.64 71.28 22.88 52.24
Net Block 65.07 66.31 73.03 61.78 56.99 66.24 58.76 57.68 27.67 69.25
Capital Work in Progress 27.40 23.75 15.33 21.05 14.89 12.10 10.14 10.04 8.28 9.85
Investments 3.30 4.51 3.50 4.19 8.62 7.03 7.28 3.80 41.08 25.24
Inventories 24.03 23.80 25.87 26.68 26.43 24.26 24.61 26.03 9.68 20.12
Sundry Debtors 12.72 14.17 15.03 15.50 16.27 15.09 14.80 21.10 4.20 8.84
Cash and Bank Balance 8.36 7.62 10.59 11.25 11.93 8.81 6.98 4.78 27.11 5.64
Total Current Assets 45.11 45.58 51.49 53.43 54.63 48.17 46.39 51.90 40.99 34.60
Loans and Advances 10.99 11.80 14.42 12.58 13.73 8.94 14.88 21.88 7.40 13.83
Fixed Deposits 0 0 0 0 0 0 0 0 0 0
Total CA, Loans & Advances 56.10 57.39 65.91 66.02 68.37 57.10 61.27 73.78 48.39 48.43
Deferred Credit 0 0 0 0 0 0 0 0 0 0
Current Liabilities 42.13 43.67 48.86 44.50 40.09 32.66 28.25 36.97 17.97 36.66
Provisions 9.75 8.28 8.91 8.54 8.77 9.81 9.31 8.51 7.96 17.98
Total CL & Provisions 51.88 51.96 57.78 53.04 48.86 42.47 37.57 45.48 25.94 54.63
Net Current Assets 4.22 5.43 8.13 12.98 19.50 14.63 23.70 28.30 22.45 -6.20
Minority Interest 0 0 0 0 0 0 0 0 0 0
Group Share in Joint Venture 0 0 0 0 0 0 0 0 0 0
Miscellaneous Expenses 0 0 0 0 0 0 0.12 0.18 0.52 1.86
Total Assets 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CONCLUSION
This project of Ratio analysis in the production concern is not merely a work of the project,
But a brief knowledge and experience of that how to analysis the financial performance of the
Industry/Company. The study undertakes has bought in to the light of the following
conclusions.
Liquidity ratios, both current ratio and Quick ratio are showing effectiveness in liquidity as in
all the years but it not increasing. Current ratio remain constant around 1.4 & Quick ratio
around .70. So. It’s good for company that not fluctuated largely. The firm is maintaining a
low cash balance and marketable securities which means they done cash payments.
Debt equity ratios are showing that an average remain constant in the long term solvency of
the company. So, Company quite depend on debt fund.
In Profitability ratio, operating profit margin (%), PBIT (%), gross profit margin, cash profit
margin, net profit margin is decreasing year by year from 2006 onward and in some year
company make loss. So, they need think about that why profitability is decreasing and how to
came out from that. But on other hand Company’s operating profit per share is good.
Inventory turnover ratio show that it remain constant over a decade and it’s not increasing that
means production sale also not increasing. Fixed assets turnover ratio is showing that the
company needs more investment in fixed assets to generate sales. The company financial
performance is decreasing year by year so company have need to focus on that sale not decrease
from the next year rather than focusing expanding business & profit.
Financial analysis provides a clear understanding of the organization SWOT (Strengths,
Weaknesses, Opportunities, and Threats) since it should be performed in conjunction with
other valuation techniques and in comparison with other organizations within the same industry
in which the entity operates.

TATA Steel

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