Balance Sheet of Tata Steel ------------------- in Rs. Cr.

-------------------
Mar '09 Mar '10
12 months 12 months

Sources of funds :
6,203.45 887.41
Total Share Capital
Equity Share Capital 730.79 887.41
Share Application Money 0.00 0.00
Preference Share Capital 5,472.66 0.00
Reserves 23,501.15 36,281.34
Revaluation Reserves 0.00 0.00
Net worth 29,704.60 37,168.75
Secured Loans 3,913.05 2,259.32
Unsecured Loans 23,033.13 22,979.88
Total Debt 26,946.18 25,239.20
Total Liabilities 56,650.78 62,407.95
Mar '10
Mar '09
12 months 12 months

Applications of funds:
20,057.01 22,306.07
Gross Block
Less: Accum. Depreciation 9,062.47 10,143.63
Net Block 10,994.54 12,162.44
Capital Work in Progress 3,487.68 3,843.59
Investments 42,371.78 44,979.67
Inventories 3,480.47 3,077.75
Sundry Debtors 635.98 434.83
Cash and Bank Balance 463.58 500.30
Total Current Assets 4,580.03 4,012.88
Loans and Advances 5,884.61 6,678.55
Fixed Deposits 1,127.02 2,733.84
Total CA, Loans & Advances 11,591.66 13,425.27
Defferred Credit 0.00 0.00
Current Liabilities 8,965.76 8,699.34
Provisions 2,934.19 3,303.68
Total CL & Provisions 11,899.95 12,003.02
Net Current Assets -308.29 1,422.25
Miscellaneous Expenses 105.07 0.00
Total Assets 56,650.78 62,407.95
Contingent Liabilities 12,188.55 13,184.61
Book Value (Rs) 331.68 418.94

Profit & Loss account of Tata

------------------- in Rs. Cr. -------------------
Steel
Mar '09 Mar '10
12 months 12 months
Income :
Sales Turnover 26,843.53 26,757.60
Excise Duty 2,495.21 1,816.95
Net Sales 24,348.32 24,940.65
Other Income 603.07 1,241.08
Stock Adjustments 289.27 -134.97
Total Income 25,240.66 26,046.76

Expenditure:
8,568.71 8,356.45
Raw Materials
Power & Fuel Cost 1,222.48 1,383.44
Employee Cost 2,305.81 2,361.48
Other Manufacturing
2,127.48 2,419.89
Expenses
Selling and Admin Expenses 400.24 417.90
Miscellaneous Expenses 1,180.08 1,287.04
Preoperative Exp
-343.65 -326.11
Capitalised
Total Expenses 15,461.15 15,900.09

Mar '09 Mar '10

12 months 12 months

Operating Profit 9,176.44 8,905.59

PBDIT 9,779.51 10,146.67
Interest 1,489.50 1,848.19
PBDT 8,290.01 8,298.48
Depreciation 973.40 1,083.18
Other Written Off 0.00 0.00
Profit Before Tax 7,316.61 7,215.30
Extra-ordinary items 0.00 0.00
PBT (Post Extra-ord Items) 7,316.61 7,215.30
Tax 2,114.87 2,168.50
Reported Net Profit 5,201.74 5,046.80
Total Value Addition 6,892.44 7,543.64
Preference Dividend 109.45 45.88
Equity Dividend 1,168.95 709.77
Corporate Dividend Tax 214.10 122.80

Per share data(annualized)

Shares in issue (lakhs) 7,305.92 8,872.14
Earning Per Share (Rs) 69.70 56.37
Equity Dividend (%) 160.00 80.00
Book Value (Rs) 331.68 418.94
Cash Flow of Tata Steel ------------------- in Rs. Cr. -------------------
Mar '09 Mar '10
12 12
months months
Net Profit Before Tax 7315.61 7214.30
Net Cash From Operating
7397.22 8369.22
Activities
Net Cash (used in)/from
-9428.08 -5254.84
Investing Activities
Net Cash (used in)/from
3156.42 -1473.13
Financing Activities
Net (decrease)/increase In 1125.56 1641.25
Cash and Cash Equivalents
Opening Cash & Cash
465.04 1592.89
Equivalents
Closing Cash & Cash
1590.60 3234.14
Equivalents
BALANCE SHEET RATIOS :
1. CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES

2009

CURRENT RATIO = 11591.66 / 11899.95

= 0.97

2010

CURRENT RATIO = 13425.27 / 12003.02

= 1.11

2. DEBT EQUITY RATIO = BORROWED FUNDS / SHAREHOLDERS FUNDS

2009

DEBT EQUITY RATIO = 26946.18 / 29704.60

= 0.90

2010

DEBT EQUITY RATIO = 25239.20 / 37168.75

= 0.67

3. PROPRIETARY RATIO = PROPRIETORS FUNDS / TOTAL ASSESTS

2009

PROPRIETARY RATIO = 29704.60 / 56650.78

= 0.52

2010

PROPRIETARY RATIO = 37168.75 / 62407.95

= 0.59
REVENUE STATEMENT RATIOS
1. EXPENSES RATIO = [EXPENSES / NET SALES] X 100

2009

EXPENSES RATIO = [400.24 / 24348.32] X 100

= 1.64

2010

EXPENSES RATIO = [417.90 / 24940.64] X 100

= 1.67

2. NET PROFIT RATIO (BEFORE TAX) = NET PROFIT / NET SALES] X 100

2009

NET PROFIT RATIO = [7316.61 / 24348.32] X 100

= 30.04

2010

NET PROFIT RATIO = [7215.30 / 24940.65] x 100

= 28.92

3. OPERATING NET PROFIT RATIO = [OPERATING PROFIT NET PROFIT / NET SALES] X 100

2009

OPERATING NET PROFIT RATIO = [9176.44 / 24348.32] X 100

= 37.68

2010

OPERATING NET PROFIT RATIO = [8905.59 / 24940.65] x 100

= 35.70
COMBINED RATIOS
1. RETURN ON EQUITY = [NET PROFIT AFTER TAX – PREFERENCE DIVIDEND / EQUITY
SHARE CAPITAL SHARE CAPITAL] X 100

2009

RETURN ON EQUITY SHARE CAPITAL = 5201.74 – 109.45 / 730.79

= 6.96

2010

RETURN ON EQUITY SHARE CAPITAL = 5046.80 – 45.88 / 887.41

= 5.63

2. RETURN ON SHAREHOLDERS FUNDS = [NET PROFIT AFTER TAX / SHAREHOLDERS

FUNDS] X 100

2009

RETURN ON SHAREHOLDERS FUNDS = [5201.71 / 29704.60] X 100

= 17.51

RETURN ON SHAREHOLDERS FUNDS = [5046.80 / 37168.78] X 100

= 13.57

3. EARNINGS PER SHARE = [NET PROFIT AFTER TAX - PREFERENCE DIVIDEND / NO. OF
EQUITY SHARES]

2009

EARNINGS PER SHARE = 5201.74 – 109.45 / 73.06

= 69.70

2010

EARNINGS PER SHARE = 5046.80 – 45.88 / 88.71

= 56.37
COMMENTS BALANCE SHEET RATIO
The current ratio of 2009 is 0.97 and 2010 is 1.11. The current
assets and current liabilities have increased more in 2010 than
in 2009. The standard ratio of current ratio is 2:1. The solvency
of company has improved as the current ratio of 2010 has
increased by 0.14.
The proprietary ratio of 2009 0.52 and 2010 is 0.59. The
standard ratio of proprietary ratio is 0.65 to 0.75. The
proprietary ratio is high in 2010. Therefore , the proprietary
ratio this year has improved. The liquidity also becomes good.
The miscellaneous expenses this year are 0 and last year
105.07. Comparing the balance sheet values of 2010 of current
assests and the liabilities have increased as compared to 2009.
Debt equity ratio in 2009 is 0.90 & in 2010 in 0.67 . Therefore
the solvency is better as there is reduction in debt in 2010 as
the borrowed are less and so the liabilities.
COMMENTS ON PROFIT & LOSS RATIOS :
The expense ratio in 2009 is 1.64 and 2010 is 1.67. This has
affected the profitability of the company.
The net profit ratio in 2009 is 30.04 and 2010 is 28.92. The
profits have been reduced in the current year.
The operating net profit ratio in 2009 is 37.68 and 2010 is 35.70
. the company’s profitability is under stress and 1 should stay
away from the shares of the company till it revives.

COMMENTS ON COMBINED RATIOS :

Return on equity share capital in 2009 is 6.96 and 2010 is 5.63. ,
return on shareholders funds in 2009 is 17.51 and 2010 is
13.57 . The Earnings per share in 2009 is 69.70 and in 2010 is
56.37. The profitability of the company is reducing , this will
have an adverse effect on the earnings per share of the
company which will in return take toll of the share price.
THANK YOU
DONE BY :
ROLL NO : 43
CLASS : FYBFM