A Study on

“FINANCIAL PERFORMANCE ANALYSIS OF TATA STEEL LTD.”

With reference to
TATA STEEL LTD
A Management Thesis Report Submitted to VFSTR Deemed to be University, Vadlamudi
In Partial Fulfilment for the Award of the Degree of
“BACHELOR OF BUSINESS ADMINISTRATION”
Submitted By
LSV PHANINDRA
Roll No. 211FK01117

Under the Guidance of

Dr. Y Srinivasa Rao,
Assistant Professor
Department of Management Studies

DEPARTMENT OF MANAGEMENT STUDIES

VIGNAN’S FOUNDATION FOR SCIENCE, TECHNOLOGY, AND RESEARCH
DEEMED TO BE UNIVERSITY
VADLAMUDI
GUNTUR
(2021-2024)

CERTIFICATE
This is to certify that this Management Thesis report entitled “FINANCIAL PERFORMANCE ANALYSIS
OF TATA STEEL LTD” is a bonafide work done by LSV Phanindra, with Registered No. 211FK01117 under
my guidance. This report was submitted to the Department of Management Studies of VFSTR Deemed to be
University, Vadlamudi in partial fulfillment of the requirements for the award of the Degree of Bachelor of
Business Administration During the academic year 2023-2024.

Dr.Y Srinivasa Rao Dr. Sarita Satpathy

Assistant Professor Professor,HOD,MBA
Department of Management Studies Department of Management Studies
 DECLARATION

I, LSV Phnanindra hereby declare that the Management Thesis Report Titled “Financial Performance Analysis
concerning TATA Steel Ltd. ” is submitted to VFSTR Deemed to be University, Vadlamudi in partial fulfillment
of the requirements for the Award of the Degree of Bachelor of Business Administration During the academic
year 2023-2024. This is the original work carried out by me. It has not formed part of any other project work
submitted for the award of any degree or diploma, either in this or any other university.

VFSTR
Deemed to be University
Vadlamudi
Guntur
522213

Date: 15 may 2024 LSV Phanindra

 ACKNOWLEDGEMENT

At the very outset of this Management Thesis Report, I would like to extend my heartfelt obligation towards all
the persons who have helped me in this endeavor. Without their active guidance, help, cooperation &
encouragement, I would not have made headway in the project.

I am ineffably indebted to Dr.Sarita Satpathy, HOD, MBA for conscientious guidance and encouragement to
accomplish this assignment.

I am extremely thankful and pay my gratitude to my Faculty guide Dr. Y Srinivasa Rao for his valuable
guidance and support on the completion of this report in its present form.

I extend my gratitude to the Department of Management Studies of VFSTR Deemed to be University for giving
me this opportunity.

I also acknowledge with a deep sense of reverence, my gratitude towards my parents and members of my
family, who have always supported me morally as well as economically.

Last but not least gratitude goes to all of my friends who directly or indirectly helped me to complete this
Management Thesis Report.

LSV Phanindra
TABLE OF CONTENTS
Chapter Content Page Number

1 Introduction 1-15
1.1 Rationale of the study
1.2 Introduction to the Industry
1.3 Introduction to Company
1.4 Justification to the topic
2 Literature Review 16-20
2.1 Introduction to review of literature
2.2 International reviews
2.3 National reviews

3 Methodology 21-23
3.1 Need of The Study
3.2 Objectives of the study
3.3 Scope of the study
3.4 Research methodology
3.5 Limitations of the Study
4 Data Analysis 24-33
4.1 Liquid Ratios
4.1.1 Current Ratio
4.1.2 Liquid Ratio
4.2 Solvency Ratio
4.2.1 Debt Equity Ratio
4.2.2 Proprietary Ratio
4.2.3 Return on equity
4.2.4 Return On Capital Employed
4.3 Profitability Ratios
4.3.1 Gross Profit Ratio
4.3.2 Net Profit Ratio
4.3.3 Operating Profit Ratio
5 Major Findings, Suggestions, Conclusion 34-36
5.1 Major findings
5.2 Suggestions
5.3 Conclusion
6 Reference and annexure 37-42
6.1 References
6.2 Annexure
LIST OF TABLES

CHAPTER TABLE CONTENT PAGE

NUMBER NUMBER NUMBER
4 4.1.1 Current Ratio 25

4 4.1.2 Liquid ratio 26

4 4.2.1 Debt-equity ratio 27

4 4.2.2 Proprietary ratio 28

4 4.2.3 Return on equity ratio 29

4 4.2.4 Return on capital employed 30

4 4.3.1 Gross profit ratio 31

4 4.3.2 Net profit 32

4 4.3.3 Operating profit ratio 33

LIST OF FIGURES

CHAPTER FIGURE CONTENT PAGE

NUMBER NUMBER NUMBER
1 1.1 Jamsetji Tata 13
1 1.2 Ratan Tata 14
1 1.3 Natarajan Chandrasekaran 14
EXECUTIVE SUMMARY OF MANAGEMENT
THESIS
 Executive Summary
.

Overview: The financial statement analysis of TATA Ltd. assesses the company's financial health, performance,
and prospects by examining its financial statements. It would include analyzing key financial ratios, trends, and
benchmarks to evaluate the company's profitability, liquidity, solvency, and efficiency.

Aim of the study: To conduct a comprehensive financial statement analysis of Tata Steel Company Ltd. to
evaluate its financial performance.

Problem Summary: The problem summary of the thesis on the financial statement analysis of Tata Steel
Company Ltd. is to highlight challenges such as the complexity of interpreting financial data, and the dynamic
nature of the steel company.

Methodology: Quantitative research methods were used in this study, under which the descriptive methodology
uses numerical data to identify patterns and trends. Facts and information already available through financial
statements of earlier years are used to analyze to make critical evaluations of available material. Hence by
making the type of research conducted both Descriptive and Analytical.

Key Words: financial statements, ratio analysis, financial performance, liquidity ratios, liabilities, assets
 CHAPTERISATION

 CHAPTER-Ⅰ: INTRODUCTION

 CHAPTER-Ⅱ: REVIEW OF LITERATURE

 CHAPTER-Ⅲ: RESEARCH METHODOLOGY

 CHAPTER-Ⅳ: DATA ANALYSIS

 CHAPTER -Ⅴ: FINDINGS, SUGGESTIONS, CONCLUSION

 CHAPTER -Ⅵ: REFERENCES AND ANNEXURE

 CHAPTER – Ⅰ
INTRODUCTION

1
 CHAPTER-Ⅰ

INTRODUCTION

1.1 Rationale of the study

Analysis of financial statements is a systematic process of critical evaluation of the financial
information given in financial statements so that this information may be understood properly.
For the purpose of analysis, individual items are studied, their relationship with other relevant
figures is established and the data are sometimes re-arranged to better understand the
information with the help of various tools
According to Berverd Needles “ Financial statement analysis comprises all the
techniques employed by the user of financial statement to show important relationship in
the financial statement”.
In short it is a technique of X- raying the financial position and the performance of the
enterprise.

“The analysis and interpretation of financial statement are an attempt to determine the
significance and meaning of financial statement data so that the forecast may be made of
the prospects for future earning, ability to pay interest and debts maturities and
profitability of a sound dividend policy”. – Kennedy and mullar

ADVANTAGE OF FINANCIAL STATEMENT ANALYSIS

The advantages of financial statement analysis are listed below:

• The most important benefit of financial statement analysis is that it provides an idea to the
investors about deciding on investing their funds in a particular company.

• Another advantage of financial statement analysis is that regulatory authorities like IASB
(International Accounting Standard Board)can ensure the company follows the required
accounting standards.

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• Financial statement analysis is helpful to government agencies in analyzing the taxation
owed to the firm.

• Above all, the company can analyze its performance over a specific period.

LIMITATION OF FINANCIAL STATEMENT ANALYSIS

• Financial Statements Are Derived from Historical Costs - Transactions are initially
recorded at their cost. This is a concern when reviewing the balance sheet, where the
values of assets and liabilities may change over time. Some items, such as marketable
securities, are altered to match changes in their market values, but other items, such as
fixed assets, do not change. Thus, the balance sheet could be misleading if a large part of
the amount presented is based on historical costs.

• Financial Statements Only Cover a Specific Period of Time - A user of financial

statements can gain an incorrect view of the financial results or cash flows of a business
by only looking at one reporting period. Any one period may vary from the normal
operating results of a business, perhaps due to a sudden spike in sales or seasonality
effects. It is better to view a large number of consecutive financial statements to gain a
better view of ongoing results.

• Financial Statements Could be Wrong Due to Fraud- The management team of a

company may deliberately skew the results presented. This situation can arise when there
is undue pressure to report excellent results, such as when a bonus plan calls for payouts
only if the reported sales level increases. One might suspect the presence of this issue
when the reported results spike to a level exceeding the industry norm, or well above a
company’s historical trend line of reported results.

• Financial Statements Do Not Cover Non-Financial Issues-The financial statements do

not address non-financial issues, such as the environmental attentiveness of a company's
operations, or how well it works with the local community. A business reporting
excellent financial results might be a failure in these other areas.

3
 • Financial Statements May Not Have Been Verified- If the financial statements have not
been audited, this means that no one has examined the accounting policies, practices, and
controls of the issuer to ensure that it has created accurate financial statements. An audit
opinion that accompanies the financial statements is evidence of such a review.

• Financial Statements Have No Predictive Value- The information in a set of financial

statements provides information about either historical results or the financial status of a
business as of a specific date. The statements do not necessarily provide any value in
predicting what will happen in the future. For example, a business could report excellent
results in one month, and no sales at all in the next month, because a contract on which it
was relying has ended.

Methods or tools or techniques of financial statement analysis

Ratio analysis – Ratio analysis is a technique of analysis, comparison and interpretation of

financial statements. It is a process through which various ratios are calculated and on that basis,
conclusions are drawn which become the base of managerial decisions.

Ratio analysis is the comparison of line items in the financial statements of a business. Ratio
analysis is used to evaluate several issues with an entity, such as its liquidity, efficiency of
operations, and profitability. This type of analysis is particularly useful to analysts outside of a
business since their primary source of information about an organization is its financial statements.

Importance of ratio analysis

1. Financial Statement Analysis- Understanding financial statements is important for the

stakeholders of the company. Ratio analysis helps in understanding the comparison of these
numbers; furthermore, it helps in estimating numbers from income statements and balance
sheets for the future. E.g. Equity shareholder looks into the P/E ratio, the Dividend payout ratio,
etc. while creditors observe Debt to Equity ratio, Gross margin ratio, Debt to asset ratio, etc.

2. Efficiency of Company-Ratio analysis is important in understanding the company’s

ability to generate profit. Return on Asset, Returns on Equity tell us how much profit the
company can generate over assets of the firm and equity investments in the firm, while gross

4
margin and operating margin ratios tell us the company’s ability to generate profit from sales
and operating efficiency.

3. Planning and Forecasting- From a Management and investor point of view, ratio analysis
helps to understand and estimate the company’s future financials and operations. Ratios formed
from past financial statement analysis help in estimating future financials, budgeting, and
planning for the future operations of the company.

4. Identifying Risk and Taking Corrective Actions- The company operates under various
business, market, operations-related risks. Ratio analysis helps in understanding these risks and
helps management to prepare and take necessary actions. Leverage ratios help in performing
sensitivity analysis of various factors affecting the company’s profitability like sales, cost, and
debt. Financial leverage ratios like Interest Coverage ratio and Debt Coverage ratio tell how
much the company is dependent on external capital sources and the company’s ability to repay
debt.

5. Peers Comparison- The investor, as well as the company’s management, makes a

comparison with competitor's Company to understand efficiency, profitability and market share.
Ratio analysis is helpful for companies to perform SWOT (Strengths, Weaknesses,
Opportunities, and Threats) analysis in the market. It also tells whether the company can

6. perform growth or not over a period from past financials and whether the company’s
financial position is improving or not.

7. Financial Solvency- The company’s ability to pay short-term debt is determined by

liquidity. Current Ratio, Acid-test ratio tells us whether a company is able to pay its short-term
obligation within a year. The company continuously runs analysis on past financial statements to
understand and prepare for payment of short-term obligations.

8. Decision Making- Ratios provide important information on the operational efficiency of

the company, and the utilization of resources by the company. It helps management to forecast
and planning for future, new goals, concentrate on the different markets, etc.

5
Types of Ratio

Liquidity ratios
liquidity refers to the ability of a concern to meet its current obligations as and when they
become due. Liquidity ratios measure the short-term solvency of a business and for this purpose
following ratio can be computed:

(a) Current ratio = current ratio is the most widely used ratio to judge short term financial
position or solvency of a firm. it can be defined as the relationship between current assets
and current liabilities. the current ratio of 2 : 1 is considered satisfactory.

Current Ratio= current assets / current liabilities

(b) Liquid Ratio = is also called Quick ratio or Acid test ratio, measures the ability of a
business to pay its short-term liabilities by having assets that are readily converted into
cash. These assets are namely cash, marketable securities, and account receivables.

Liquid Ratio= current asset–inventory–prepaid expenses /current liabilities

(c) Absolute liquid Ratio = ratio is also known as super quick ratio and establishes a
relationship between absolute liquid assets and liquid liabilities. The ideal level of
absolute liquid ratio is 0.5 : 1 .

Absolute liquid ratio = cash and bank balance/current liabilities

(d) Cash ratio = the cash ratio is a measure of the liquidity of a firm, namely the ratio of the
total assets and cash equivalents.

Cash ratio = cash and bank balance/ current assets

6
Solvency Ratio

Solvency ratio - this ratio examines whether the total realizable amount from all assets of a firm is
enough to pay all of its external liability or not. In this context, this ratio shows the relationship
between total assets and external liabilities of the firm.

Solvency means the ability of a firm to pay its liability on the due date. Solvency is tested
based on the ability of the concern to pay its long-term liability at due time.
The ratios to be used for this purpose are called as ‘ ratio of financial position’ or stability
ratio. The main ratios of this category are as follows;

(a) Debt-equity Ratio- this ratio reflects the long-term financial position of a firm and is
calculated in the form of a relationship between external equities or outsider’s funds and
internal equities or shareholders' funds. Debt equity ratio may also be called a ratio of
long-term debt to shareholders funds’.

Debt Equity Ratio= long term debts/ shareholder funds

Or debt/equity

(b) Proprietary ratio- This ratio indicates the relationship between the proprietor's fund and
total assets. The greater the proprietor funds better the position of the creditor.

Proprietary ratio=proprietary funds or shareholders funds/Total assets

 Profitability ratio
Profitability ratio is used to evaluate the company’s ability to generate income as compared
to its expenses and other costs associated with the generation of income during a
particular period. This ratio represents the final result of the company.

The main category of this ratio are :

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 a) Gross profit ratio- This ratio measures the marginal profit of the company. This ratio is
also used to measure the segment revenue. A high ratio represents the greater profit
margin and it’s good for the company.

Gross profit ratio = Gross Profit /Sales × 100

Gross Profit = Sales + Closing Stock – Opening Stock – Purchases – Direct Expenses

b) Net profit ratio - This ratio measures the overall profitability of company considering
all direct as well as indirect cost. A high ratio represents a positive return in the company
and better the company is.

Net profit ratio = Net Profit / Sales × 100

Net Profit = Gross Profit + Indirect Income – Indirect Expenses

c) Return on equity - This ratio measures the Profitability of the equity fund invested in
the company.
It also measures how profitably the owner’s funds have been utilized to generate the
company’s revenues. A high ratio represents better the company is.

Return on equity =Profit after Tax/ Net worth x 100

Where, Net worth = Equity share capital, and Reserve and Surplus

d) Return on capital employed- Return on capital employed (ROCE) is a financial ratio

that can be used in assessing a company's profitability and capital efficiency. In other
words, this ratio can help to understand how well a company is generating profits from
its capital as it is put to use.
Return on capital employed (ROCE) = net profit before interest and tax / capital employed X
100

e) Operating profit ratio - The operating profit ratio establishes a relationship between
operating Profit earned and net revenue generated from operations (net sales). operating
profit ratio is a type of profitability ratio that is expressed as a percentage.

Operating profit ratio = operating profit / net sales X 100

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1.2 INTRODUCTION TO THE INDUSTRY

INTRODUCTION OF STEEL INDUSTRY IN INDIA

India was the world’s second-largest steel producer with production standing at 111.2 million
tons (MT) in 2019. The growth in the Indian steel sector has been driven by the domestic
availability of raw materials such as iron ore and cost-effective labor. Consequently, the steel
sector has been a major contributor to India’s manufacturing output.
The Indian steel industry is modern with state-of-the-art steel mills. It has always strived for
continuous modernization of older plants and up-gradation to higher energy efficiency levels.
The Indian steel industry is classified into three categories - major producers, main producers,
and secondary producers.

Market Size

India’s finished steel consumption grew at a CAGR of 5.2% during FY18-FY22 to reach 100
MT. India’s crude steel and finished steel production increased to 108.5 MT and 101.03 MT in
FY20P, respectively.
Between April 2020 and November 2020, India’s cumulative production of crude steel was
62.01 MT and finished steel was 55.68 MT.
Export and import of finished steel stood at 8.24 MT and 6.69 MT, respectively, in FY20P.
Export and import of finished steel stood at 7.70 MT and 2.70 MT, respectively, between April
2020 and November 2020.

INVESTMENT

The steel industry and its associated mining and metallurgy sectors have seen major investments
and developments in the recent past.
According to the data released by the Department for Promotion of Industry and Internal Trade
(DPIIT), the Indian metallurgical industries attracted Foreign Direct Investment (FDI) to the
tune of US$ 14.24 billion in the period April 2000-September 2020.
Some of the major investments in the Indian steel industry are as follows:
9
 • In a move towards becoming self-reliant, Indian steel companies have started boosting
steel production capacity. To this end, SAIL announced a doubling of its 5 of its steel
plants capacity in September 2020.
• In March 2020, Arcelor Mittal Nippon Steel India (AM/NS) acquired the Bhander
Power plant in Hazira, Gujarat from Edelweiss Asset Reconstruction Company.
• In February 2020, GFG Alliance acquired Adhunik Metaliks and its arm Zion Steel for
Rs. 425 crore (US$ 60.81 million), marking its entry into the Indian steel market.
• For FY20, JSW Steel set a target of supplying around 1.5 lakh tons of TMT Rebars to
metro rail projects across the country.
• In December 2019, Arcelor Mittal completed the acquisition of Essar Steel at Rs. 42,000
cr(US$ 6.01 billion) and formed a joint venture with Nippon Steel Corporation.
• JSW Steel has planned a US$ 4.14 billion capital expenditure programme to increase its
overall steel output capacity from 18 million tons to 23 million tons by 2020.
• Ministry of Steel plans to invest US$ 70 million in the eastern region of the country
through accelerated development of the sector.
• The production capacity of SAIL is expected to increase from 13 MTPA to 50 MTPA in
2025 with total investment of US$ 24.88 billion.
• Tata Steel has decided to increase the capacity of its Kalinganagar integrated steel plant
from 3 million tons to 8 million tons at an investment of US$ 3.64 billion.

Government Initiatives
Some of the other recent Government initiatives in this sector are as follows:

• In December 2020, the Minister for Petroleum & Natural Gas and Steel, Mr. Dharmendra
Pradhan, appealed to the scientific community to Innovate for India (I4I) and create
competitive advantages to make India ‘Aatmanirbhar’.
• In September 2020, the Ministry of Steel prepared a draft framework policy for the
development of steel clusters in the country.
• On October 1, 2020, the Directorate General of Foreign Trade (DGFT) announced that
steel manufacturers in the country can avail of duty drawback benefits on steel supplied
through their service centers, distributors, dealers, and stock yards.
• The government introduced a Steel Scrap Recycling Policy to reduce imports.

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 • An export duty of 30% has been levied on iron ore^ (lumps and fines) to ensure supply
to the domestic steel industry.
• Government of India’s focus on infrastructure and restarting road projects is aiding the
steel demand. Also, further likely acceleration in rural economy and infrastructure is
expected to lead to growth in demand for steel.
• The Union Cabinet, Government of India approved the National Steel Policy (NSP)
2017, as it intends to create a globally competitive steel industry in India. NSP 2017
envisages 300 million tonnes (MT) steel-making capacity and 160 kgs per capita steel
consumption by 2030-31.
• The Ministry of Steel is facilitating the setting up of an industry-driven Steel Research
and Technology Mission of India (SRTMI) in association with the public and private
sector steel companies to spearhead research and development activities in the iron and
steel industry at an initial corpus of Rs. 200 crore (US$ 30 million).
• The Government of India raised import duty on most steel items twice, each time by
2.5% and imposed measures including anti-dumping and safeguard duties on iron and
steel items.

Road ahead

The National Steel Policy, 2017 envisages 300 million tons of production capacity by 2030-31.
The per capita consumption of steel has increased from 57.6 kg to 74.1 kg during the last five
years. The government has a fixed objective of increasing rural consumption of steel from the
current 19.6 kg/per capita to 38 kg/per capita by 2030-31.
As per the Indian Steel Association (ISA), steel demand will grow by 7.2% in 2019-20 and
2020-21.
A huge scope for growth is offered by India’s comparatively low per capita steel consumption
and the expected rise in consumption due to increased infrastructure construction and the
thriving automobile and railways sectors.

11
 1.3 INTRODUCTION TO THE COMPANY

COMPANY PROFILE

Tata Steel Limited is an Indian multinational steel-making company based in Jamshedpur,

Jharkhand and is headquartered in Mumbai, Maharashtra, India. It is a subsidiary of the Tata
Group.

Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata Steel is among the top
steel-producing companies in the world with an annual crude steel capacity of 34 million tons
per annum. It is one of the world's most geographically diversified steel producers, with
operations and commercial presence across the world. The group (excluding SEA operations)
recorded a consolidated turnover of US$19.7 billion in the financial year ending 31 March 2020.
It is the second-largest steel company in India (measured by domestic production) with an
annual capacity of 13 million tons after SAIL.

Tata Steel operates in 26 countries with key operations in India, Netherlands and United
Kingdom, and employs around 80,500 people. Its largest plant (10 MTPA capacity) is located in
Jamshedpur, Jharkhand. In 2007, Tata Steel acquired the UK-based steel maker Corus. 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 according to Brand Finance.

In July 2019 Tata Steel Kalinganagar (TSK) was included in the list of the World Economic
Forum's (WEF's) Global Lighthouse Network, showing leadership in applying Fourth Industrial
Revolution technologies to drive financial and operational impact.

Tata Steel is headquartered in Mumbai, Maharashtra, India, and has its marketing headquarters
at the Tata Centre in Kolkata, West Bengal. It has a presence in around 50 countries with
manufacturing operations in 26 countries including India, Malaysia, Vietnam, Thailand, UAE,
Ivory Coast, Mozambique, South Africa, Australia, United Kingdom, The Netherlands, France
and Canada.

Tata Steel primarily serves customers in the automotive, construction, consumer goods,
engineering, packaging, lifting and excavating, energy and power, aerospace, shipbuilding, rail,
and defense and security sectors.
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Tata Iron and Steel Company (TISCO) was founded by Jamsetji Tata and established by Dorabji
Tata on 26 August 1907. TISCO started pig iron production in 1911 and began producing steel
in 1912 as a branch of Jamsetji's Tata Group. The first steel ingot was manufactured on 16
February 1912. During the First World War (1914-1918), the company made rapid progress. 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, and a further 20,000 in the neighbouring coal mines. In 1971 and
1979, there were unsuccessful attempts to nationalise the company. In 1990, the company began
to expand, and established its subsidiary, Tata Inc., in New York. The company changed its name
from TISCO to Tata Steel Ltd. in 2005.

Tata Steel on Thursday, 12 February 2015 announced buying three strip product services centres
in Sweden, Finland, and Norway from SSAB to strengthen its offering in the Nordic region. The
company, however, did not disclose the value of the transactions.

In September 2017, ThyssenKrupp of Germany and Tata Steel announced plans to combine their
European steel-making businesses. The deal will structure the European assets as Thyssenkrupp
Tata Steel, an equal joint venture. The announcement estimated that the company would be
Europe's second-largest steelmaker, and listed its future headquarters in Amsterdam.

Jamsetji Nusserwanji Tata (1839 – 1904)

The foundation of what would grow to become the

Tata group was laid in 1868 by
Jamsetji Nusserwanji Tata – then a 29-year-old who
had learned the ropes of business while working in his
father’s banking firm – when he established a trading
company in Bombay.

A visionary entrepreneur, an avowed

Figure 1.1
nationalist and a committed philanthropist,
Jamsetji Tata helped pave the path to
industrialization in India by seeding

13
 pioneering businesses in sectors such as steel,
energy, textiles and hospitality.

Ratan tata
The beginning of the 1990s ushered in plenty of change in Indian business.
Economic reforms opened up many sectors, signalling increased competition and
the arrival of foreign companies. JRD Tata’s death, in 1993, symbolised the end
of an era in more ways than one.

Ratan Tata, who took over as chairman in 1991, guided the Tata group in a
fast-changing business environment where old rules did not apply and new
realities were taking hold. Mr Tata retired as Chairman of Tata Sons on
December 28, 2012.

Figure – 1.2
Natarajan Chandrasekaran (1963)

Natarajan Chandrasekaran is Chairman of the board of Tata

Sons, the holding company and promoter of more than 100 Tata
operating companies with aggregate annual revenues of more than
US $100 billion. He joined the board of Tata Sons in October
2016 and was appointed Chairman in January 2017.
Chandra also chairs the boards of several group operating
companies, including Tata Steel, Tata Motors, Tata Power, Indian
Hotels and Tata Consultancy Services (TCS) — of which he was
chief executive from 2009-17.
Figure – 1.3
His appointment as chairman followed a 30-year
business career at TCS, which he joined from
university. Chandra rose through the ranks at
TCS to become CEO and managing director of
the leading global IT solutions and consulting
firm.

14
Mission Statement: Consistent with the vision and values of the
founder Jamsetji Tata, Tata Steel strives to strengthen India’s industrial base
through effective utilization of staff and materials. The means envisaged to
achieve this are best technology and high productivity, consistent with modern
management practices. Tata Steel recognizes that while honesty and integrity are
essential ingredients of a strong and stable enterprise, profitability provides the
main spark for economic activity.
Overall, the Company seeks to scale the heights of excellence in all it does in an
atmosphere free from fear, and thereby reaffirms its faith in democratic values.

1.4 JUSTIFICATION OF THE TOPIC

This research project is about the study of financial performance of Tata steel ltd. The project is
done for the practical knowledge and academic compulsion purpose. For the study I have taken
the five year (2018-2022) financial data of Tata steel ltd. I have use different type of ratios to
evaluate and analyze the financial performance of Tata steel ltd.

15
 CHAPTER – Ⅱ
REVIEW OF LITERATURE

16
 CHAPTER - II

REVIEW OF LITRATURE

The literature review is a written overview of major writings and other sources on selected
topics. Sources covered in the review may include scholarly journals, articles, books,
government reports, websites etc.

2.1 International Reviews

DeVancy (1993) conducted a study to measure the changes in status in the families of the
United States of America by using financial ratios selected from different categories for a period
of four years ranging from 1983 to 1986. This study used the financial ratios as indicators of
progress to answer the question of whether the households were able to improve their financial
status during the study period.

Gallizo and Salvador (2003) also carried out a study on the financial ratios of U.S.
manufacturing firms for a period of eight years from 1993 to 2000 to understand the behavior
and adjustment process of the same. A proper balance between sales and assets generally
specifies that the assets are managed and utilized well towards the sales generation. The main
aim of the company is to maximize its profit and profitability ratios help to measure the overall
performance and efficiency of the firm.

Peeler J. Patsula (2006), he define that a sound business analysis tells others a lot about good
sense and understanding of the difficulties that a company will face. We have to make sure that
people know exactly how we arrived to the final financial positions. We have to show the
calculation but we have to avoid anything that is too mathematical. A business performance
analysis indicates the further growth and the expansion. It gives a physiological advantage to the
employees and also a planning advantage.

Susan Ward (2008), emphasis that financial analysis using ratios between key values help
investors cope with the massive amount of numbers in company financial statements. For
example, they can compute the percentage of net profit a company is generating on the funds it

17
has deployed. All other things remaining the same, a company that earns a higher percentage of
profit compared to other companies is a better investment option.

Ahmed and Ahmed (2014) conducted a study to analyze the effect of mergers upon financial
performance of manufacturing industries in Pakistan. Twelve manufacturing companies were
selected for the study which had involved in the process of merger during 2000-2009. Three
years data before merger and three years data after merger were used to test the significance of
study. Paired sample t-test was applied on accounting ratios. The study revealed that overall
financial performance of acquiring manufacturing corporations were insignificantly improved
after the merger. The liquidity, profitability and capital position of the selected companies were
insignificantly improved and the efficiency deteriorated after the merger. Finally, it was
concluded that merger impacted on different industries of manufacturing sector differently.

2.2 National Reviews

Rooh Ollah Arab, Seyed Saadat Masoumi and Azadeh Barati (2015) examined the financial
performance of identified units in the steel industry in India in terms of financial ratios such as
Liquidity, Solvency, Activity and Profitability position. For this study , Tata Steel Ltd., Jindal
Steel & Power Ltd., J S W Steel Ltd., Bhushan Steel Ltd. and Steel Authority of India Ltd. are
selected for this study. The study evaluated the impact of selected variables on the financial
performance of identified units in the steel industry, ANOVA-Test analysis is used.

Ramaratnam and Jayaraman (2010) used financial ratios in terms of liquidity, profitability,
variability and sustainability to measure the financial performance of Indian steel industry for a
period of five years from 2005 to 2010. Their study reveals that the critical situation faced by the
Indian steel industry is due to over capacity and demand slowdown resulting in price cuts.

A study has been conducted by Pal (2011) on the Indian steel companies for a period of ten years
range between 2000-01 and 2009-10 to measure the profitability of the selected companies
which is of major importance to the internal and external stakeholders to determine the earning
capacity together with the credibility of the companies to sustain in the competition for a long
run.

18
Tiwari (2013) examined working capital management efficiency in Indian cement industry. They
found that though some of the sample firms had successfully improved efficiency during these
years, the existence of a very high degree of inconsistency in this matter clearly pointed out the
need for adopting sound working capital management policies by these firms. It was suggested
that the firms under study should have taken necessary steps in order to improve their efficiency.

Acharya (2013) compared the liquidity position of TATA Steel Ltd. and SAIL and studied the
relationship that exists between liquidity and profitability of both the companies. The purpose of
the study was to investigate the liquidity management efficiency and profitability position of
selected steel companies. Therefore, an attempt was made to investigate the liquidity position
and its impact on the profitability of Tata Steel Ltd. and Steel Authority of India Ltd for a period
of ten years ranging from 2004 to 2013. Various accounting ratios were analyzed with the help
of statistical techniques, such as multiple correlations, multiple regression analysis and t-test.
Through the analysis of the data, it was found that liquidity position had positive impact on the
profitability of the selected firms.

Comparing profit earning capacity of selected Steel companies in India, Popat (2012) analyzed
profitability ratios of selected companies in Indian steel industry. Findings of that study
indicated that TATA steel’s profitability was better than other selected companies while JINDAL
steel’s profitability was next to TATA steel. It was also found that JSW and SAIL showed
fluctuation in their profitability while UTTAM had a decreasing trend in the profitability during
the period of study.

Prakash and Natarajan (2014) conducted a study on financial performance of Salem Steel
Authority of India Ltd. The analysis revealed that there is a fluxion in the gross profit and net
profit during the study period. The study helps to identify the financial position of the company.
Optimum utilization of working capital can be planned so as to result in sound financial position
of the company.

19
Dr.C.Balakrishnan (2016) observed that financial performance of any organization is influenced
by several factors like capital structure, cost, revenue and the consequential profit margin. The
study can be analyzed with many aspects like financial facts, financial ratios, financial health,
financial strength and utilization of assets, etc. The study revealed that financial performance
can be influenced by the operational and financial efficiency of the steel industry, which are
related to cost and the revenue aspects. The study analyzed the performance of steel industry in
India on the parameters such as profitability, utilization of assets, growth of performance,
financial strength and capital structure. The study also attempted to identify the nature of
relationship between the various aspects of financial performance.

Dalvadi & Tagariaya (2019), studied shareholders returns of selected Infrastructure companies in
India during the period from 2013-14 to 2017- 18 through ratio analysis. The statistical tools
used for analysis are mean, standard deviation, one way Anova test etc. They found that there is
no significant difference in the performance of the selected Infrastructure companies in India in
terms of shareholders return and financial performance during the study period. They also stated
that the performance of DLF limited, Reliance Infrastructure limited and L & T limited have
better compared to IRB Infrastructure Developers Limited and Nagarjuna Construction
Company limit.

20
 CHAPTER -Ⅲ

RESEARCH METHODOLOGY

21
 CHAPTER- Ⅲ
RESEARCH METHODOLOGY
3.1 NEED OF THE STUDY

• To diagnose the information containing financial statements to judge the financial

position of the firm
• To diagnose the information contained in the financial statement so as to judge the
profitablitiy of the firm.
• To know the liquidity and turnover position of the company.

3.2 OBJECTIVES OF THE STUDY

• To know the financial position of a company

• To reveal insights regarding, liquidity, operational efficiency, and solvency through Ratio
analysis.

3.3 SCOPE OF THE STUDY

• The scope of the study is limited to collecting financial data published in the annual
reports of the company every year.

• The ratio analysis is done to suggest possible solutions. The study is carried out for 5
years of data of Tata steel ( 2017-18 to 2021-22).

• This study is confined to Tata Steel only.

3.4 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. So the research
methodology not only talks about the research methods but also considers the logic behind the
method used in the context of the research study.

22
Research design

The researcher had to use fact and information already available through financial statements of
earlier years and analyse these to make critical evaluation of available material

Data collection

Secondary data

Secondary data implies second hand information which is already collected and recorded by any
person other than a user for a purpose, not relating to the current research problem. It is the
readily available form of data collected from various sources like censuses, government
publication, internal records of the organizations , reports books ,journal articles, websites and
so on.

Sources of data

The required data for the study are basically secondary in nature and the data are collected from
the audited reports of the company. The sources of data are from the annual reports of the
company from the year 2018-2019 to 2021-2022.

Methods of data analysis

The data collected were classified and tabulated for analysis. The analytical tool used in this
study.

The study employs the following analytical tools:

• Graph

• Ratio analysis

3.5 LIMITATION OF THE STUDY

The study is based on secondary data, obtained from the published report, and its finding
depends entirely on the accuracy of such data.

23
24
 CHAPTER - Ⅳ

DATA ANALYSIS

25
 CHAPTER- Ⅳ

DATA ANALYSIS
4.1 LIQUID RATIOS
4.1.1 Current Ratio = current asset/current liabilities

Table 4.1.1
Year Current assets Current liabilities Current ratio
(Rs crore) (Rs crore)
2018 14421.49 21087.99 0.68
2019 20110.40 23056.33 0.87
2020 34643.91 25607.34 1.35
2021 17035.58 25593.65 0.67
2022 20009.19 30871.30 0.65

Current ratio
1.6
1.4
1.2
1
0.8
Current ratio
0.6
0.4
0.2
0
2018 2019 2020 2021 2022

Current ratio compares current assets with current liabilities and tell us whether the current
assets are enough to settle current liabilities. It is inferred from the table that the higher current
ratio of Tata steel is 1.35 in the year 2020 and the lower was 0.65 in the year 2022. The ratio of
1.2 to 2 or above is usually considered safe. Tata steel is in poor condition to pay back its debts.
Hence the current ratio of Tata steel is dissatisfactory.

26
4.1.2 Liquid Ratio
Liquid ratio= current assets- inventory- prepaid expenses/current liabilities

Table 4.1.2
Year Liquid assets Current Liquid ratio
(Rs crore) liabilities
(Rs crore)
2018 7337.68 21087.99 0.35
2019 9873.55 23056.33 0.43
2020 23620.5 25607.34 0.92
2021 5780.24 25593.65 0.23
2022 9292.53 30871.30 0.30

Liquid ratio
1
0.9
0.8
0.7
0.6
0.5
Liquid ratio
0.4
0.3
0.2
0.1
0
2018 2019 2020 2021 2022

Ratio of 1.1 is said to be the ideal quick ratio. Indicating that company has in its possession
enough assets which may be immediately liquidated for paying off the current liabilities. The
table shows that the highest liquid ratio of Tata steel is 0.92 in the year 2020 that is not more
than the ideal ratio. Hence the liquid ratio of the company is dissatisfactory.

27
4.2 LONG TERM FINANCIAL POSITION RATIO OR SOLVENCY RATIO

4.2.1 Debt Equity Ratio

Debt-equity ratio = long-term borrowing (Debt) / shareholder funds

Table 4.2.1
Year debt Shareholders Debt equity ratio
(Rs crore) fund (Rs crore)
2018 29368.44 70476.72 0.41
2019 36475.07 49659.00 0.73
2020 35717.16 61514.82 0.58
2021 39175.00 70454.71 0.55
2022 42683.14 74563.12 0.57

Debt equity ratio

0.8
0.7
0.6
0.5
0.4
Debt equity ratio
0.3
0.2
0.1
0
2018 2019 2020 2021 2022

The debt equity ratio is a financial ratio indicating the relative proportion of shareholders equity
and debt used to finance a company assets. Debt to equity ratio greater than 1 indicate the
company may be overleveraged. In all the years debt equity ratio of a company is less than 1.
Hence the company is good in maintaining its debt position.

28
4.2.2 Proprietary Ratio

Proprietary ratio = shareholder funds / total assets

Table 4.2.2
year Shareholders Total assets Proprietary ratio
fund (Rs crore) (Rs crore)
2018 70476.72 123208.15 0.57
2019 49659.00 111465.41 0.44
2020 61514.82 125114.34 0.49
2021 70454.71 137498.36 0.51
2022 74563.12 150392.56 0.49

Proprietary ratio
0.6

0.5

0.4

0.3
Proprietary ratio
0.2

0.1

0
2018 2019 2020 2021 2022

The high proprietary ratio indicates that a company has a sufficient amount of equity to support
the function of business. The ideal value of the proprietary ratio is depend on the risk appetite of
the investors . If investor agree to take large amount of risk than a lower proprietary ratio is
preferred. It is inferred from the table that the proprietary ratio of Tata steel is higher in the year
2018 (0.57) and lower in the year 2019 (0.44). Hence proprietary ratio of the company is
satisfactory.

29
4.2.3 Return On Equity
Return on equity = net profit after tax and preference dividend/ (share capital+ reserve and
surplus) X 100

Table 4.2.3
Year Net profit after Share capital + Return on equity
tax and reserve and
preference surplus
dividend (Rs crore)
(Rs crore)
2018 4900.95 70476.72 6.95
2019 3444.55 49659.00 6.93
2020 4169.55 61514.82 6.77
2021 10533.19 70454.71 14.95
2022 6743.80 74563.12 9.04

Return on equity
16
14
12
10
8
Return on equity
6
4
2
0
2018 2019 2020 2021 2022

The return on equity signifies how good the company is in generating returns on the investment
it received from his shareholders. It is inferred from the table that the return on equity of Tata
steel is higher in the year 2021 (14.95%) and the lower in 2020 that was (6.77%).

30
4.2.4 Return On Capital Employed

Return on capital employed= net profit before interest and tax/capital employed X 100

Capital employed= total assets – current liabilities

Table 4.2.4

Year Net profit before Capital employed Return on capital

interest and tax (Rs crore) employed
(Rs crore)

2018 11102.45 102120.16 10.87

2019 12290.41 88409.08 13.90
2020 16542.62 99507 16.62
2021 22968.02 111904.71 20.52
2022 15265.69 119521.26 12.77

Return on capital employed

25

20

15
Return on capital
10 employed

0
2018 2019 2020 2021 2022

Return on capital employed measures the efficiency with which investment made by the
shareholders. It is inferred from the table that the return on capital employed is higher in the
year 2021 (20.52%) and lower in the year 2018 (10.87%).

4.3 PROFITABILITY RATIOS

4.3.1 Gross Profit Ratio

31
Gross profit ratio = (gross profit/net sales) x 100

Table 4.3.1
year Gross profit Net sales Gross profit ratio
(Rs crore) (Rs crore)
2018 6154.90 37814.69 16.27
2019 9601.86 47296.99 20.30
2020 13732.00 58550.68 23.45
2021 20144.44 68923.15 29.22
2022 12234.68 58815.57 20.80

Gross profit ratio

35

30

25

20

15 Gross profit ratio

10

0
2018 2019 2020 2021 2022

Gross profit ratio measures the relationship of gross profit and net sales. Higher ratio is better.
The higher ratio indicates an increase in the selling price of the goods sold without any
corresponding increase in the cost of goods sold.
For the last 4 year, the gross profit ratio of Tata steel has been grown upwards consistently but in
the year 2022 it decreases. Overall It indicate that the gross profit ratio is increased over a
period of time. It shows the good progress of the company. It is inferred from the table that the
gross profit ratio is higher in the year 2021 (29.22%) and lower in the year 2018 (16.27%).
4.3.2 Net Profit Ratio

Net profit ratio = ( net profit / net sales ) x 100

32
 Table 4.3.2
year Net profit Net sales Net profit ratio
(Rs crore) (Rs crore)
2018 4900.95 37814.69 12.96
2019 3444.55 47296.99 7.28
2020 4169.55 58550.68 7.12
2021 10533.19 68923.15 15.28
2022 6743.80 58815.57 11.46

Net profit ratio

18
16
14
12
10
8 Net profit ratio
6
4
2
0
2018 2019 2020 2021 2022

Net profit ratio shows the relationship between net profit and net sales. Higher the ratio indicates
that operational efficiency of the concern. It can be observed from table that the net profit ratio
of Tata steel shows that there is decrease in the net profit margin from the year 2019 to 2020 as
compared to 2016.The higher net profit ratio was observed in the year 2021 that was 15.28%
and the lower in the year 2020 (7.12%) .

4.3.3 Operating Profit Ratio

Operating profit ratio = (operating profit / net sales ) x 100

Table 4.3.3

33
 year Operating profit Net sales Operating profit
(Rs crore) (Rs crore) ratio
2018 7611.79 37814.69 20.12
2019 11875.95 47296.99 25.10
2020 15778.96 58550.68 26.94
2021 20562.94 68923.15 29.83
2022 14861.57 58815.57 25.26

Operating profit ratio

35

30

25

20

15 Operating profit ratio

10

0
2018 2019 2020 2021 2022

This ratio is used to measure the operational efficiency of the management . It is inferred from
the table that From the last 4 year, the operating profit ratio of the company has been grown
upwards consistently but in the year 2022 it decreases. The highest operating ratio was observed
in the year 2021 (29.83%) and lowest is observed in the year 2018 (20.12%).

34
 CHAPTER-Ⅴ

FINDINGS, SUGGESTIONS, CONCLUSION

35
 CHAPTER- Ⅴ
FINDINGS, SUGGESTIONS, CONCLUSIONS

5.1 MAJORS FINDING

• The higher current ratio of the Tata steel is 1.35 in the year 2020 and the lower was 0.65
in the year 2022.
• Higher liquid ratio of Tata steel is 0.92 in the year 2020 and lower was 0.23 in the year
2021 and It was 0.30 in the year 2022.
• The Gross profit ratio of Tata steel has been grown upwards consistently from 2018 to
2021. It was high in 2021 (29.22%) and low in 2018 (16.27%) and 20.80% in the year
2022.
• The Net profit of Tata steel shows that there is decrease in the net profit margin in the
year 2019 (7.28%) and 2020 (7.12%) as compared to 2018 (12.96%) it was high in the
year 2021 (15.28%) and low in the year 2020 (7.12%) It was 11.46% in the year 2022.
• The operating profit ratio of Tata steel Tata steel has been grown upwards consistently
from 2018 to 2021. It was high in 2021 (29.83%) and low in 2018 (20.12%) and 25.26%
in the year 2022.
• Return on equity of Tata steel is high in the year 2021 (14.95%) and was low 2020
(6.77%) and 9.04% in the year 2022.
• Return on capital employed of Tata steel is high in the year 2021 (20.52%) and was low
in 2018 (10.87%) and 12.77% in the year 2022.
• Debt equity ratio of Tata steel is low in the last five years and it was 0.57 in the year
2022. Lower debt equity ratio shows a good performance of a company.
• The proprietary ratio of Tata steel is higher in the year 2018 (0.57) and lower in the year
2019 (0.44) and 0.49 in the year 2022.

36
5.2 SUGGESTION

From the findings and analysis of Tata steel ltd for the last five year we can conclude some
suggestions for company so that the company can be more efficient to generate profit.

• Current ratio of Tata steel ltd is low it should increase its current ratio where it can meet
it short term obligation smoothly.

• The company should be maintaining a sound short-term debts paying capacity in future
because the use of more amount of external funds may lead to short-term insolvency.

• Liquid ratio of Tata steel ltd is low. So I suggest that a company maintain proper liquid
funds.

• All operational and related activities should be performed efficiently and effectively.

• Tata steel ltd has sound solvency position but the Company has to avail on the benefit of
trading on equity.

• The government intervention in promoting ‘Make in India’ in public procurement has

resulted in Indian companies garnering over Rs 50 billion in projects.

• For the very existence and growth, every company has to earn adequate profit. As
regards profitability, the company witnessed a fluctuating trend throughout the study
period, which is not desirable from the management of the company. To keep the
shareholders‟ happy and reliable the rate of return to the equity shareholders should be
consistent in the years to come.

37
5.3 CONCLUSION
Efficient management of finance is very important for the success of an enterprise. Term

financial performance is very dynamic term. The subject matter of financial performance has
been changing very rapidly. In present time greater importance is given to financial
performance. So, here an attempt is made by me to analyze the financial performance of TATA
STEEL LTD. While analyzing the financial performance it can be concluded that TATA Steel is
performing good in terms of Quick assets, better inventory management, management of fixed
assets, gross profit, return on capital employed and dividend payout ratio. These factors plays
important role in forming company strategic and operational thinking. Efforts should constantly
be made to improve the financial position up to next level of performance in order to make
benchmark. This will yield greater efficiencies and improve investor satisfaction. Lastly the
policy adopted by government of India under National steel policy (2017) and policy on
preference to domestically manufactured iron and steel products is expected to provide the much
necessary momentum to the iron and steel sector of india.

38
 CHAPTER -6
REFERENCES AND ANNEXURE

39
 CHAPTER -6
REFERENCES AND ANNEXURE
Annexure I
6.1 REFERENCES

https://en.wikipedia.org/wiki/Tata_Steel
https://www.ibef.org/industry/steel.aspx

DeVancy, S.(1993)., “ Change in Household Financial Ratios Between 1983 and 1986: Were american
Household Improving Their Financial Status”, Financial Counselling and
Planning,http://www.6aa7f5e4a9901a1682793cd11f5a6b732d29.gripelements.com/pdf/vol-43.

Gallizo, Jose L. & Salvador, Manuel, 2003. "Understanding the behavior of

financial ratios: the adjustment process," Journal of Economics and
Business, Elsevier, vol. 55(3), pages 267-283.
Ahmed and Ahmed, 2014” Mergers and acquisitions: Effect on the financial performance of manufacturing
companieshttps://scholar.google.com/citations?
view_op=view_citation&hl=en&user=G_anmYQAAAAJ&citation_for_view=G_anmYQAAAAJ:u-
x6o8ySG0sC

Rooh Ollah Arab, Seyed Saadat Masoumi and Azadeh Barati,2015 “Financial Performance of the Steel
Industry in India: A Critical Analysis “Middle-East Journal of Scientific Research 23 (6): 1085-1090, 2015
https://idosi.org/mejsr/mejsr23(6)15/15.pdf

Ramaratnam, M S and Jayaraman, R. (2010), A Study on Measuring the Financial Soundness of Selected
Firms with Special Reference to Indian Steel Industry-An Empirical View with Z-Score, Asian Journal of
Management Research, Vol.1, No.1, pp. 724-735.

Pal, S. (2012), Comparative Study of Financial Performance of Indian Steel Companies Under Globalisation,
International Journal of Accounting and Financial Management Research, pp. 1-8.

40
Tiwari, S. (2013), “A Study on Working Capital Management Efficiency in Indian Cement Industry”,
International Journal of Management and Science, Vol. 4(1), pp. 191– 197.

Popat, Ketan H. (2012). "A Comparative Study of Profitability Analysis of Selected Steel Industries."
Medical
Science1.12https://www.academia.edu/39207147/Performance_Analysis_of_Steel_Industry_of_India_A_Cas
e_Study_of_the_Tata

Prakash, M. and Natarajan, K. (2014), “Financial Performance of Salem Steel Salem”, International Journal of
Advanced Research in Management and Social science, Vol.3(2), pp.146-153.

Dr.C.Balakrishnan(2016) “A STUDY ON FINANCIAL PERFORMANCE OF STEEL INDUSTRY IN

INDIA”
IJARIIEhttps://ijariie.com/AdminUploadPdf/A_STUDY_ON_FINANCIAL_PERFORMANCE_OF_STEEL_
INDUSTRY_IN__INDIA_ijariie2878.pdf

https://www.moneycontrol.com/financials/tatasteel/balance-sheetVI/TIS
https://money.rediff.com/companies/Tata-Steel-Ltd/15510001/results-annual

41
6.2 ANNEXURE Ⅱ

BALANCE SHEET OF TATA STEEL (in MAR 22 MAR 21 MAR 20 MAR 19 MAR 18
Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 1,146.13 1,146.12 1,146.12 971.41 971.41

TOTAL SHARE CAPITAL 1,146.13 1,146.12 1,146.12 971.41 971.41

Reserves and Surplus 73,416.99 69,308.59 60,368.70 48,687.59 69,505.31

TOTAL RESERVES AND SURPLUS 73,416.99 69,308.59 60,368.70 48,687.59 69,505.31

TOTAL SHAREHOLDERS FUNDS 74,563.12 70,454.71 61,514.82 49,659.00 70,476.72

NON-CURRENT LIABILITIES

Long Term Borrowings 31,381.96 26,651.19 24,568.95 24,694.37 23,457.77

Deferred Tax Liabilities [Net] 5,862.28 7,807.00 6,259.09 6,111.27 2,179.83

Other Long Term Liabilities 3,325.34 2,798.63 2,927.91 3,644.69 842.66

Long Term Provisions 2,113.56 1,918.18 1,961.21 2,024.74 2,888.18

TOTAL NON-CURRENT LIABILITIES 42,683.14 39,175.00 35,717.16 36,475.07 29,368.44

CURRENT LIABILITIES

Short Term Borrowings 7,857.27 8.09 669.88 3,239.67 5,261.02

Trade Payables 10,600.96 10,969.56 11,242.75 10,717.44 7,706.13

Other Current Liabilities 11,749.21 13,837.77 12,959.43 8,398.62 6,115.81

Short Term Provisions 663.86 778.23 735.28 700.60 2,005.03

TOTAL CURRENT LIABILITIES 30,871.30 25,593.65 25,607.34 23,056.33 21,087.99

TOTAL CAPITAL AND LIABILITIES 150,392.56 137,498.36 125,114.34 111,465.41 123,208.15

ASSETS

42
NON-CURRENT ASSETS

Tangible Assets 70,505.66 70,416.82 70,942.90 71,778.97 24,901.24

Intangible Assets 727.72 805.20 786.18 788.18 527.35

Capital Work-In-Progress 8,070.41 5,686.02 5,641.50 6,125.35 26,982.37

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 79,480.43 77,018.31 77,402.35 78,731.11 52,410.96

Non-Current Investments 46,860.91 38,929.25 9,636.56 8,355.90 52,360.42

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans And Advances 199.26 231.16 213.50 211.97 3,787.88

Other Non-Current Assets 3,842.77 4,284.06 3,218.02 4,056.03 227.40

TOTAL NON-CURRENT ASSETS 130,383.37 120,462.78 90,470.43 91,355.01 108,786.66

CURRENT ASSETS

Current Investments 3,235.16 477.47 14,640.37 5,309.81 4,320.17

Inventories 10,716.66 11,255.34 11,023.41 10,236.85 7,083.81

Trade Receivables 1,016.73 1,363.04 1,875.63 2,006.52 632.80

Cash And Cash Equivalents 1,226.87 718.11 4,696.74 970.31 1,014.67

Short Term Loans And Advances 1,607.32 55.92 74.13 27.14 1,243.48

Other Current Assets 2,206.45 3,165.70 2,333.63 1,559.77 126.56

TOTAL CURRENT ASSETS 20,009.19 17,035.58 34,643.91 20,110.40 14,421.49

TOTAL ASSETS 150,392.56 137,498.36 125,114.34 111,465.41 123,208.15

ANNUAL REPORT
Annual results in brief
(Rs crore)

Mar ' 22 Mar ' 21 Mar ' 20 Mar ' 19 Mar ' 18

43
 60,435.97 70,610.92 59,160.79 47,993.02 38,268.67
Sales

Operating profit 14,861.57 20,562.94 15,778.96 11,875.95 7,611.79

Interest 3,031.01 2,823.58 2,810.62 2,688.55 1,848.05

Gross profit 12,234.68 20,144.44 13,732.00 9,601.86 6,154.90

EPS (Rs) 58.84 91.90 36.38 35.46 9.84

44