FINANCIAL STATEMENT

ANALYSIS OF
TATA STEEL & JINDAL STEEL

PRESENTATION BY
MISS.SHEETAL PAL
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TATA STEEL PROFILE
 Tata Steel (BSE: 500470), formerly known as TISCO
and Tata Iron and Steel Company Limited, is the
world's seventh largest steel company,[4] with an
annual crude steel capacity of 31 million tonnes. It is
the largest private sector steel company in India in
terms of domestic production. Ranked 258th on
Fortune Global 500, it is based in Jamshedpur,
Jharkhand, India.[5][6] It is part of Tata Group of
companies. Tata Steel is also India's second-largest
and second-most profitable company in private
sector with consolidated revenues of 132,110 crore (
US$ 29.99 billion) and net profit of over 12,350 crore
(US$ 2.8 billion) during the year ended March 31,
2008.[7][8] Tata steel in the 8th most valuable brand
according to an annual survey conducted by Brand
Finance and The Economic Times in 2010. [9]
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JINDAL STEEL PROFILE

 Jindal South West Ltd. also known as JSW Steel is an Indian

steel company owned by the Sajjan Jindal group. JSW Steel is
among India's largest steel producers with a capacity of 7.8MT
as of 2010.
 JSW Group is one of the fastest growing business
conglomerates with a strong presence in the core economic
sector. This Sajjan Jindal led enterprise has grown from a steel
rolling mill in 1982 to a multi business conglomerate worth US
$ 5 billion within a short span of time.
 As part of the US $ 10 billion O. P. Jindal Group, JSW Group has
diversified interests in Steel, Energy, Minerals and Mining,
Aluminium, Infrastructure and Logistics, Cement and
Information Technology.
 [1].
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Comparative Balance Sheet of Tata steel

2009 2010 Absolute Change % Percentage

Sources of fund
1.Shareholder’s Fund
(a) Share capital 6203.45 887.41 -5316.04 -14
(b)Reserves & Surplus 23501.15 36281.34 12780.19 54

Internal Equity 29704.60 37168.75 7464.15 40

2.Loan Funds
(a) Secured 3913.05 2259.32 1653.73 57
(b)Unsecured 23033.13 22979.88 53.25 1

External Equity 26946.18 25239.20 1706.98 58

Foreign currency monetary item

translation difference

3.Deffered Tax Liability

a)Deffered Tax Liability
b)Deffered Tax Asset

Total Funds Employed 56650.78 62407.95 5757.17 10

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Comparative Balance Sheet of Tata Steel

Application of funds
2009 2010 Absolute %
Change Change
Long Term Investment
a)Gross Block 20057.01 22306.07 2249.06 11
Less : Depreciation 9062.47 10143.63 3330.22 12
Net Block 10994.54 12162.44 1167.90 11
Capital work in progress 3487.68 3843.59 355.91 10

Investment 42371.78 44979.67 2607.89 6

Total 56854.00 60985.70 4131.70 7

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Comparative Balance Sheet of Jindal Steel

Application of funds
2009 2010 Absolute %
Change Change
Long Term Investment
a)Gross Block 16896.75 21795.58 4898.83 28
Less : Depreciation (3810.31) (4929.44) (1119.13) 29
Net Block 13086.44 16866.14 3779.70 57
Capital work in progress 9242.06 6684.27 (2557.79) 72

Investment 1250.11 1768.35 518.24 41.44

Total 23578.61 25318.76 1740.15 42.89

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Comparative Balance Sheet of Tata Steel

Application of funds 2009 2010 Absolute %

Change Change
Fixed Deposits 1127.02 2733.84 1606.82 142
Foreign currency monetary item
translation difference
Account (net)
Current Assets,Loans &
Advance
Interest accrued on investment
Inventories 3480.47 3077.75 (402.72) (11)
Sundry Debtors 635.98 434.83 (201.15) (31)
Cash & Bank Balances 463.58 500.30 36.72 8
Loans & Advances 5884.61 6678.55 793.94 14

Total 11591.66 13425.27 1833.61 16

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Comparative Balance Sheet of Tata Steel

Application of funds 2009 2010 Absolute %

Change Change
Current Liabilities &
Provision
Current Liabilities 8965.76 8699.34 (266.42) (4)
Provision 2934.19 3303.68 369.49 13

Net Current Asset (308.29) 1422.25 1113.96 0

Misc Exp 105.07 0 105.07 100

Total
Comparative Profit & loss of Tata Steel LOGO

2009 2010 Absolute Change % Percentage

Income
1.Gross Sales 26843.54 26757.60 85.94 1
Less : Excise Duty (2495.21) (1816.95) (678.96) 72
Net Sales 24348.32 24940.65 (592.33) 71

2.Dividend & Other Income 603.07 1241.08 (638.01) 105

3.Stock Adjustment 289.27 (134.97) 154.30 46
Total 24951.39 26181.73 (1230.34) 5

Expenditure
1.Consumption of raw materials 8568.71 8356.45 212.26 97
2.Expenditure trfd to capital & (343.65) (326.11) (17.54) 95
other accounts
3.Power & Fuel 1122.48 1383.44 260.96 23
4.Employee Cost 2305.81 2361.48 55.67 2
5.Other Manufacturing Exps 2127.48 2419.89 292.41 5
6.Selling & Distribution 400.24 417.90 17.66 55
7.Miscellneous Exps. 1180.08 1287.04 106.96 66

Total 15461.15 15900.09 438.94 41

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Comparative Profit & loss of Tata Steel

2009 2010 Absolute Change % Percentage

Operating Profit 9176.44 8905.59 (270.85) 97
PBDIT 9779.51 10146.67 367.16 4
INTEREST (1489.50) (1848.19) (358.69) 24
PBDT 8290.01 8298.48 98.47 100
DEPRECIATION (973.40) (1083.18) (109.78) 12
PROFIT BEFORE TAX 7316.61 7215.30 (101.31) 98
TAX (2114.87) (2168.50) (53.63) 52
PROFIT AFTER TAX 5201.74 5046.80 (154.94) 54
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CASH FLOW SUMMARY OF TATA STEEL FOR YEAR ENDED 2010

(Rs.crores)
Cash & Equivalent at the beginning of the year 1592.89

Net cash from operating activity 8369.22

Net cash used in investing activity (5254.84)

Net cash used in financing activity (1473.13)

Net increase/decrease in cash equivalent 1641.25

Cash & equivalent end of year 3234.14

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Comparative Balance Sheet of Jindal Steel

Sources of funds
2009 2010 Absolute %
Change Change
Share holders Fund
a) Share Capital 537.01 527.01 (10) 0
b)Reserves & Surplus 7422.24 9179.23 1756.99 27.07
Internal Equity 7959.25 9706.34 1747.09 27.07
Loan Funds
a)Secured 8214.61 8987.51 772.90 14.85
b)Unsecured 3058.02 2597.59 460.57 13.75
External Equity 11272.63 11585.10 312.47 28.60
Deffered Liability
Deffered Asset
Total
Total Funds Employed 19231.88 21291.44 25.55
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Comparative Balance Sheet of Jindal Steel

Application of funds 2009 2010 Absolute %

Change Change
Fixed Deposit 212.05 169.71 (42.34) 80
Current Assets,Loans & Advance
Inventories 2051.42 2585.77 534.35 26
Sundry Debtors 398.14 563.25 165.11 41
Cash & Bank Balances 207.91 117.40 (90.51) (56)
Other CA
Loans & Advances 1980.02 2216.05 236.03 12
Total Current Assets
Current Liabilities & Provisions
Current Liabilities 9115.34 9415.28 299.94 14
Provisions 80.93 264.22 183.29 22
Total 9196.27 9679.50 483.23 58
Net Current Assets (4346.73) (4027.32) 319.41 66
Total Assets (Net) 19231.88 21291.44 2059.56 84
Comparative Profit & Loss statement of Jindal Steel ending MarLOGO
10
2009 2010 Absolute Change % Percentage
Income
1.Gross Sales 15179.29 19456.64 4277.35 28.79
Less : Excise Duty (1172.70) (1289.18) (116.48) 0
Net Sales 14006.59 18167.46 4160.87 29.7

2.Dividend & Other Income (608.47) 474.25 (134.22) 0

3.Stock Adjustment 285.22 64.74 220.48 23
Total 13683.34 18706.45 5023.11 37

Expenditure
1.Consumption of raw materials 9386.47 11415.86 2029.39 28
2.Power & Fuel 673.07 1014.82 341.75 66
3.Employee Cost 288.75 365.2 76.45 22
4.Other Manufacturing Exps 194.03 249.60 55.57 11
5.Selling & Distribution 717.74 724.63 6.89 9
6.Miscellneous Exps 170.58 188.53 17.95 14

Total 11430.64 13958.64 2528 45

 Comparative Profit & Loss statement of Jindal Steel ending MarLOGO
10
2009 2010 Absolute % Percentage
Change

EBIDTA 2252.70 4747.81 2495.11 52

Interest 836.82 900.26 63.44 96

Depreciation 827.66 1123.41 2975.75 12
Total

Profit Before Tax 588.22 2724.14 2135.92 55

Add: Extra ordinery items 176.8 96.03 (80.77) 0
765.02 2820.17 2055.15 55
Tax 306.52 797.43 490.91 55

Profit After Tax 458.50 2022.74 1564.24 11

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CASH FLOW SUMMARY OF JINDAL STEEL FOR THE YEAR ENDED 2010

(Rs.crores)
Cash & Equivalent at the beginning of the year 376.61

Net cash from operating activity 3297.76

Net cash used in investing activity (3147.78)

Net cash used in financing activity (261.78)

Net increase/decrease in cash equivalent (111.80)

Cash & equivalent end of year 264.81

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LIQUIDITY RATIOS
CURRENT RATIO

TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

Current Assets 4580.03 4012.88 2657.47 3266.42

Current Liability 8965.76 8699.34 9115.34 9415.28

Current Ratio 51.08 46.12 29.14 34.69

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LIQUIDITY RATIOS
QUICK RATIO

TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

Quick Assets 1099.56 935.13 606.05 680.65

Current Liability 8965.76 8699.34 9115.34 9415.28

Quick Ratio 12.26 10.75 6.65 7.23

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LIQUIDITY RATIOS
DEBTORS TURNOVER RATIO
TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

Net Sales 24348.32 24940.65 14006.59 18167.46

Debtors 635.98 434.83 398.14 563.25

Debtors Turnover 2.61 1.74 2.84 3.10

1.56
Debtors Collection Period 1.76 Days 1.21 Days 1.10 Days
Days
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LIQUIDITY RATIOS
CREDITORS TURNOVER RATIO

TATA JINDAL
COMPANY
STEEL STEEL

Year 2010 2010

Credit Purchases 8356.45 11415.86

Avg Creditors 8665.76 9415.28

Creditors Turnover 0.96 1.21

Avg Accounts Payable

Period
24.06 26.15
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SOLVENCY RATIOS
PROPRIETORS RATIO

TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

Shareholders Fund 6203.45 887.41 537.01 527.01

Total Assets 56650.78 62407.95 19231.88 21291.44

Proprietors Ratio 0.11 0.01 0.02 0.02

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SOLVENCY RATIOS
DEBT EQUITY RATIO

TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

Total long term

26946.18 25239.20 11272.63 11585.10
debt

Shareholders fund 6203.45 887.41 537.01 527.01

Debt Equity Ratio 4.34 28.45 21.00 0.04

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SOLVENCY RATIOS
INTEREST COVERAGE RATIO

TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

EBDIT 9779.51 10146.67 2252.70 4747.81

Interest 1489.50 1848.19 836.82 900.26

Interest Coverage
0.15 0.18 0.37 0.19
Ratio
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TURNOVER RATIOS
STOCK TURNOVER RATIO
TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

Cost of goods sold 24348.32 24940.65 14006.59 18167.46

Inventories 3480.68 3077.75 2051.42 2585.77

Stock Turnover
0.14 0.12 0.14 0.14
Ratios
Average Age of
9.6 0.85 5.60 7.18
Inventory
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TURNOVER RATIOS
FIXED ASSETS TURNOVER RATIO

TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

24348.3
Net Sales 24940.65 14006.59 18167.46
2
10994.5
Total Fixed Assets 12162.44 13086.44 16866.44
4
Fixed Assets
0.45 0.49 0.93 0.92
Turnover
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PROFITABILITY RATIOS
NET PROFIT RATIO
TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

Net Profit 5201.74 5046.80 458.5 2022.74

Net Sales 24348.32 24940.65 14006.59 18167.46

Net Profit Ratio 21.36 20.23 3.27 11.13

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PROFITABILITY RATIOS
RETURN ON SHAREHOLDERS FUND

TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

5201.7
Net Profit 5046.80 458.50 2022.74
4
6203.4
Shareholders Fund 887.41 537.01 527.01
5
Return on
1.19 0.17 1.17 0.26
shareholders fund
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PROFITABILITY RATIOS
EARNINGS PER SHARE RATIO

JINDAL
COMPANY TATA STEEL
STEEL

Year 2009 2010 2009 2010

Profit After
5201.74 5046.80 458.50 2022.74
Tax
No of equity
7305.92 8872.14 1870.49 1870.49
shareholding
Earnings per
69.70 56.37 22.963 22.963
share
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PROFITABILITY RATIOS
RETURN ON CAPITAL EMPLOYED

TATA JINDAL
COMPANY
STEEL STEEL

Year 2009 2010 2009 2010

5201.7
Net Profit 5046.80 458.50 2022.74
4
6203.4
Capital Employed 887.41 537.01 527.01
5
Return on capital
0.83 0.17 1.17 0.26
employed
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Conclusion

TATA STEEL was listed in 2003 and has been a

consistent and strong performer on the stock
exchange,giving handsome returns to investors.They
are practically debt free and have a healthy cash
balance.They have financed all growth from internal
sources.Their continous efforts at cost cutting and
improving productivity even in good times have helped
them in making reasonable profits despite the impact of
higher commodity prices.
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Conclusion

JINDAL STEEL should try to improve its liquidity

position.Majority of its assets are financed through debt
to investing in a company with a higher debt/equity
ratio may be riskier especially in times of rising interest
rate due to the additional interest that has to be paid
out for the debt but also earning per share has double
as compared to previous year which is positive for
shareholders.