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TATA CHEMICAL LTD

S.V. INSTITUTE OF MANAGEMENT Page 1



CERTIFICATE
This is to certify that Mr. Jignesh vachhani of S.V institute of management ,kadi
have submitted their winter project title TATA CHEMICAL in the year 2012-2013
In partial fulfillment of kadi sarva vishwavidyalaya requirement for the award of the title
of MASTER OF BUSINESS ADMINISTRATION.


Prof, Bhavin Pandya
Head of the department


Project guide :- prof, Sushil Mohanty
Date: - 17-1-2013









TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 2


DECLARATION
I hereby declare that winter project title TATA CHEMICAL is original to the best
of our knowledge and has not been published elsewhere. this is for the purpose of
partial fulfillment of kadi sarva vishwavidyalaya requirement for the award of the title
of" MASTER OF BUSINESS ADMINISTARTION only










TATA CHEMICAL LTD
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PREFACE
As part of our MBA Program, in our Managerial accounting Subject
we are required to do on financial accounting on our particular company
For this purpose we have selected TATA CHEMICAL LTD AS analyses
profit &loss and balance sheet, and cash flow statement for this purpose.
It help in implementing we get from classroom and reading .it will also
enhance our practical knowledge after doing this project .We analyses the
annual Report of last five year of Tata chemical .It remained good experience
while doing this project on our part. In doing this project , we have been given
an opportunity to study the various constituents of finance in a more practical
and analytical manner .It has helped us to gain knowledge of the corporate
world in depth.
Write by:-
Jignesh vachhani


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ACKOWLEDGEMENT
As part if MBA curriculum regarding financial analysis given. we are in
debited to Mr,Nikunj patel (faculty member) for giving & providing information
regarding project and assignment this practical exercise.
We are also thanks ful to Mr,Bhavin Pandya (h.o.d, s.v.i.m) for allowing
us to use resource like computer lab , internet lab etc. for completing the
project .
At last we would like to thank all friends who helped in this project.

Jignesh vachhani.



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INTORDUCTION

Tata Chemicals Limited is a part of the US$ 70.8 billion Tata Group.
Established in 1939,TCL is currently the second largest producer of soda ash in
the world with manufacturing facilities in India, UK, Kenya and USA. It is
Indias leading Crop Nutrients Player with it sown manufacturing of urea and
phosphotic fertilizers & a leading player in crop protection business through its
subsidiary Rallis India Ltd. TCL is the pioneer and Indias market leader in the
branded, iodized salt segment &Tata Salt has been recognized as Indias
No.1Food Brand for more than five years reaching to over 60 million
households in India. TCL has undertaken several key steps recently to leverage
its expertise in sciences to develop high-tech and more sustainable products. It
has set up the TCL Innovation Centre in Pune to develop world-class R&D
capability in the emerging areas of Nanotechnology and biotechnology. TCL
has also invested in a Centre for Agriculture & Technology (CAT) at Aligarh to
provide advice on farming practices in general and crop nutrition practices &
solutions in particular. The business is currently focused on working with
sustainably grown feedstock for first generation bioethanol and biodiesel. For
biodiesel, the company is currently focused on identifying, developing &
cultivating superior varieties of jatropha as feedstock. TCL has also recently
acquired an equity stake in Joel (Singapore), a jatropha seedling company
founded by Temasek Life Sciences Laboratory that will set up tissue culture labs
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in India and other locations to develop jatropha seedlings using micro
propagation techniques. Tata Chemicals will also have exclusive marketing
rights for Joels jatropha seedlings in India and East Africa. Apart from this, the
company is actively involved in biofuels research. TCL's Innovation Centre is
working on advanced technologies including second generation biofuels,
technology for better processing of feedstock & on by-products. TCL is a part of
ICRISATs Sweet Sorghum Ethanol Research Consortium (SSERC).




Businesses
Tata Chemicals operates broadly in three sectors Living Essentials, Industry
Essentials and Farm Essentials.It is structured in order to address all major segment of
consumers in society namely Household,Industry (Industry Essentials) and the Farmer.

Living Essentials
The pillar of Living essentials covers products that are basic/ essential to daily living
e.g. salt, sodium bicarbonate or baking soda products, fresh produce and now water relate
products. The Consumer Products Business (CPB) comprises predominantly of Tata Salt, a
branded iodized edible salt, and Sodium Bicarbonate and water purifiers among other
offerings. The company has launched a new refined salt, I-Shakti. The special Tata Salt Lite
caters to the niche market of low sodium saltusers with 15% less sodium than ordinary salts.
Topp Salt is a brand of edible salt created for export. I-Shakti, a cooking soda, is targeted to
help the leavening of the consumers. To leverage its reach with farmers and housewives
TCL started Khet-Se, a 50:50 joint venture in 2007 with Total Produce, Irelandone of the
largest fruits and vegetable distribution company in the world and Europes largest and
most accomplished fresh produce provider, to set up a fruits andvegetables distribution
business in India. To meet the challenge of providing safe drinking water to Indias
population, TCL, launched Tata Swach in December 2009 a unique and innovative water
purifier that combines low-cost ingredients such as rice husk ash with nanotechnology.
The product combines technology,performance,convenience and above all, affordability to
serve a basic human right of millions of
consumers.


Industry Essentials
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The second pillar, Industry essentials, consists of products that are essential raw materials
required for key industries such as glass, detergents, mining and chemical processing.
TCLs journey as a soda ash manufacturer began in Mithapur, on the western coast of
Gujarat. For many years,the synthetic soda ash plant at Mithapur represented the sum total
of TCLs soda ash manufacturing activities. In 2006, TCLs soda ash capacity took a
significant leap when it acquired the UK-based
Brunner Mond Group, (Tata Chemicals Europe Limited) one of the worlds leading
manufacturer of soda ash and sodium bicarbonate. Through this acquisition, manufacturing
facilities in Northwich and Winnington, UK and Lake Magadi, Kenya joined the TCL fold.
In early 2008, TCL successfully completed the acquisition of US-based General Chemical
(now Tata Chemicals North America) Industrial Products (GCIP), thereby gaining access to
some of the worlds largest recoverable trona ore deposits which can be very economically
converted to soda ash at GCIPs plant in Green River, Wyoming. The acquisition of GCIP
increased TCLs soda ash capacity to around 5 million tonnes per annum. Moreover, about
60% of this capacity is based on natural soda ash units at Wyoming and Lake Magadi.
TCLs customer base now encompasses some of the worlds leading and recognizable
companies such as Procter & Gamble, Unilever, Church & Dwight, Saint Gobain,
Pilkington, Asahi, Owens Illinois, Guardian,
PPG, Vale and Xstrata.

Farm Essentials
Inputs needed to improve productivity of the farm as a whole e.g. fertilizers, pesticides,
specialty nutrients, seeds, agri-services and crop protection constitute the third pillar of
TCL. The Crop Nutrition and Agri-Business has its presence across all the three key
agronutrients; viz. nitrogen (N), phosphorus (P) and potassium (K). While the nitrogenous
fertilizer, urea, is manufactured at Babrala in the northern state of Uttar Pradesh at one of
the industrys most efficient plants, phosphatic fertilizers DAP and complexes are
manufactured at Haldia in West Bengal in eastern India and MOP is imported. To secure
the raw material supply of phosphatic rock for its Haldia plant, in 2005 TCL acquired an
equal partnership in the Moroccan company Indo Maroc Phosphore S.A. (IMACID), along
with Chambal Fertilisers and the global phosphate major, OCP of Morocco. The company
also helps small farmers enhance the yield from their land by providing end-to-end
solutions through its network of Tata Kisan Sansars (Tata Farmer Centres) in the northern
states of Uttar Pradesh, Punjab, Haryana, Uttarakhand and West Bengal, Bihar and
Jharkhand. The centers are one-stop resource centers; they stock seeds, pesticides and
fertilizers; lease out farm equipment and implements to farmers who cannot afford to buy
expensive modern machinery; provide agronomy services like soil testing and mapping and
fertilizer testing; facilitate credit finance, arrange crop insurance and even provide buyback
facilities. Through Rallis, its subsidiary, TCL will look to enhancing value creation as well
as accessing business synergies in the agri-inputs sector crop nutrition and crop
protection. Currently, TCL is a dominant player in the crop nutrition segment. Rallis has a
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leadership position in the Indian Crop Protection industry and with this; TCL will
strengthen its presence in the entire agri-input space.








Tata Chemicals organisation structure

SEGMENT LIVING
ESSENTIALS
(B2C)
INDUSTRY
ESSENTIALS
(B2B)
FARM ESSENTIALS
(B2F)
BUSINESS CONSUMER
PRODUCTS
BULK
CHEMI-
CALS
SPECI
-ALTY
CHEM
ICALS
CROP
PROTEC
-TION
CROP
NUTRIT
-ION
SEEDS
OTHER
AGRI-
INPUTS
&
SERVIC-
ES
Key
Products/
Services
(examples)
Salt, Cooking
Soda, Water,
Fresh Produce,
Staples
Soda
Ash,
Bicarb,
Others

Pesticide
s
Bulk &
Specialty
Fertilizer,
PGN
Seeds Farm
Equipm-
ent,
Services

Nature & Ownership:
TATA CHEMICALS LIMITED, a company registered under Indian Companies
Act, 1913, is a widely held Company. The shareholding pattern is depicted in
the : We have 3210 employees in India and 1446 employees oversees totaling to
4656 employees as of 31st March 2010. Fig. Ab-01& 02 Our consolidated
shareholder funds for the reporting period as on 31st March 2009 and 31st
March 2010 were Rs.4770 Crs and Rs. 4716 Crs, while shareholder funds for
standalone Indian operations were Rs. 3859 Crs & Rs.4283 respectively.Total
consolidated sources of funds amounted to Rs.11,326 Crs As on 31st March
2009 and
TATA CHEMICAL LTD
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Rs.10,255 Crs as on 31st March 2010, while sources of funds for India
operations were Rs. 7638 Crs and Rs.7420 Crs Rrespectively.







PRODUCT NAME &
MANUFACTURING PRODUCT


Product Name Sales (Rs.in Crores)
Urea 1,398.07
Soda Ash 1,121.08
Diammonium Phosphate - Traded 1,041.09
NP/NPK 1,000.67
Diammonium Phosphate (DAP) 956.56
Vacuum Salt 731.88
Complex Fertilizers-Traded 497.05
Methyl Bromide 451.69
Cement 175.53
Solar Evaporated salt-Traded 151.15
Sodium Bicarbonate 138.93
Single Super Phosphate 123.06
Others - Traded 80.93
Other Operating Revenues 74.65
CustomisedFertiliser 71.97
Sulphuric Acid 63.12
Bromine 24.33
Caustic Soda 14.41
Gypsum 14.24
Soda Ash-Traded 10.13
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Clinker 4.15
Bicarb Trading 0.60
Sodium Tripolyphosphate 0.47
Chlorine-Liquid 0.17
Salt-Pure 0.14
Hydrochloric Acid 0.08
Phosphoric Acid 0.06
Sulphonic acid 0.00
Hydrobromic Acid 0.00
Ammonia 0.00
Caustic soda Lye-Traded 0.00
Bromides-Inorganic 0.00
Phosphates-Industrial 0.00
Tetra Sodium Pyro Phosphate 0.00
Sulphur-Traded 0.00
Portland Cement-Pozzolana 0.00
Rock Phosphate-Traded 0.00
Vacuum Salt-Traded 0.00
Processing Charges 0.00
Solar Salt 0.00
Complex Fertilizers(DAP)-Trade 0.00
Mesh- 1&2 0.00
Mesh-3 0.00
MOP-traded 0.00
Others 0.00
Tap 0.00
Tata Swach-Bulb 0.00
Tata Swach-Bulb R- Supreme 0.00
Tata Swach-Crystal 0.00
Fusite 0.00
Sodium Bicarbonate-IP/USP 0.00
Ethyl Bromide 0.00
Detergents 0.00
Chemical Machinery 0.00

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CHAPTER-1




BASIC
INFORMATION
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TATA CHEMICALS LTD.


CHAPTER-1 (BASIC INFORMATION)

CONTACT INFORMATION

Registered office:-


Address:-
Street
Bombay House, 24, Homi Mody Street,
City
Mumbai Pin code 400001
State
Maharashtra
Email
Address

Web site
www.tatachemicals.com
Telephone and Fax Number:-
Country Code 91 Area Code 22
Tel no.
022-66658282
TATA CHEMICAL LTD
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Fax no.
022-66658143








Board of Directors

Chairman Ratan N Tata
Vice Chairman R Gopalakrishnan
Director Nusli N Wadia
Prasad R Menon
Nasser Munjee
Yoginder K Alagh
Company Secretary Rajiv Chandan
Director Eknath A Kshirsagar
Managing Director R Mukundan
Executive Director & CFO P K Ghose
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Director Y S P Thorat
Deputy Chairman Cyrus P Mistry
Additional Director Vijay Kelkar






CORPORATE INFORMATION

Management Team

Prasad R. Menon Managing Director
Homi R. Khusrokhan Executive Director
P. K. Ghose Chief Financial Officer
Kapil Mehan Chief Operating Officer (Fertilisers)
R. Mukundan Chief Operating Officer (Chemicals)
Satish Sohoni Chief Operating Officer (Food Additives)
B. Sudhakar Head-Corporate HR & Administration
I. L. Momin VP-Operational Execellance
P. M. Khanderia V P-New Projects
Sanjiv Lal V P-Manufacturing
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P. C. Jain V P-Manufacturing
Dr. Arup Basu V P-Manufacturing
A. Tyagi V P-Bangladesh Project
Dr. Murli Shastri Chief Scientist
T. Vinod Kumar Head-CorporateAudit & Risk Management




Company Secretary
B. Renganathan

Registrar &
Share Transfer Agent
TSR Darashaw Limited
(Formerly Tata Share Registry Limited)
Army & Navy Building,
148, Mahatma Gandhi Road,
Mumbai 400 001.

Solicitors
Mulla & Mulla and
Craigie Blunt & Caroe, Mumbai.


Auditors
Messers S. B. Billimoria & Co.,
Chartered Accountants
Messers N. M. Raiji & Co.,
Chartered Accountants

Works
Inorganic Chemicals Mithapur, Gujarat
Fertilisers Babrala, Dist. Badaun, U.P.
Phosphate Haldia, W. Bengal
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Bankers
Bank of America,
Bank of Baroda,
Citibank N.A.,
Deutsche Bank,
HDFC Bank Limited,
Punjab National Bank,
Standard Chartered Bank,
State Bank of Bikaner & Jaipur,
State Bank of India,
The Hongkong and Shanghai Banking Corporation Ltd.,
ICICI Bank Ltd.









CHAPTER:-2
COMPARATIVE
BALANCE SHEET
AND
ANALSIS OF B/S
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CHAPTER:-2

COMPARATIVE BALANCE SHEET AND ANALSIS OF B/S

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
SOURCE OF FUNDS
Share Capital 254.82 254.82 243.32 235.23 234.06
Reserves & Surplus 4,762.41 4,485.86 4,039.64 3,624.07 3,337.62
Total Shareholders Funds 5,017.23 4,740.68 4,282.96 3,859.30 3,571.68
LOANS FUNDS
Secured Loans 248.93 252.73 249.24 249.48 47.97
Unsecured Loans 3,299.76 2,860.89 2,697.27 3,426.62 2,295.87
Total 3,548.69 3,113.62 2,946.51 3,676.10 2,343.84
Total 8,565.92 7,854.30 7,229.47 7,535.40 5,915.52
APPLICATION OF FUNDS
Gross Block 4,300.35 3,946.56 3,803.50 3,602.99 3,291.44
Less: Accum. Depreciation 2,490.32 2,358.98 2,211.06 2,058.01 1,948.24
Net Block 1,810.03 1,587.58 1,592.44 1,544.98 1,343.20
Capital Work in Progress 265.38 299.53 237.65 307.22 169.38
TOTAL 2,075.41 1,887.11 1,830.09 1,852.20 1,512.58
Investments 4,613.87 4,901.69 4,905.59 4,473.73 3,741.40
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CURRENT ASSETS,LOANS
& ADV.

Inventories 1,253.22 696.3 611.19 961.35 657.64
Sundry Debtors 1,485.83 724.48 581.6 1,001.73 639.5
Cash and Bank Balance 891.85 798.76 712.65 638.75 277.63
Loans and Advances 730.11 593.38 404.46 1,048.40 712.01
TOTAL 4,361.01 2812.92 2309.9 3,650.23 2286.78
LESS:-Current Liabilities 2,160.14 1,441.04 1,462.92 2,068.05 1,273.98
LESS:-Provisions 324.23 306.38 353.19 372.71 351.79
Net Current Assets 1,876.64 1,065.50 493.79 1,209.47 661.01
Miscellaneous Expenses not
w/o
0 0 0 0 0.53
Total 8,565.92 7,854.30 7,229.47 7,535.40 5,915.52
Contingent Liabilities 1,243.11 1,301.02 1,124.75 1,271.54 2,465.74

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21%
21%
20%
19%
19%
BALANCE SHEET
8-Mar
9-Mar
10-Mar
11-Mar
12-Mar
TATA CHEMICAL LTD
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CHAPTER:-3




COMPARATIVE
PROFIT AND LOSS
ACCOUNT
AND
ANALSIS OF P&L
ACCOUNT



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CHAPTER:-3
COMPARATIVE PROFIT AND LOSS ACCOUNT AND
ANALSIS OF P&L ACCOUNT


COMPARATIVE PROFIT AND LOSS ACCOUNT


Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
INCOME
Sales Turnover 8,146.21 6,459.73 5,512.73 8,536.60 4,207.13
Other Income 280.33 108.03 256.78 186.81 676.75
Stock Adjustments 409.36 10.07 -171.17 95.54 25.71
Total Income 8,835.90 6,577.83 5,598.34 8,818.95 4,909.59
EXPENDITURE
Raw Materials 5,032.56 3,507.79 2,784.00 5,529.23 1,954.12
Excise Duty 158.93 126.87 100.28 174.51 170.45
Power & Fuel Cost 685.22 570.34 430.14 609.52 479.66
Other Manufacturing Expenses 346.26 286.55 253.13 267.68 221.01
Employee Cost 242.13 234.13 204.53 199.02 169.73
Selling and Administration
Expenses
774.29 659.18 553.07 513.6 424.82
Miscellaneous Expenses 397.29 238.54 292.14 513.12 146.06
Less: Preoperative Expenditure
Capitalised
0 10.22 0 2.26 0.14
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TOTAL 7636.68 5,633.62 4,617.29 7,808.94 3,565.99
Profit before Interest,
Depreciation & Tax
1,199.22 964.65 981.05 1,014.53 1,343.88
Interest & Financial Charges 210.19 201.49 205.73 191.23 38.02
Profit before Depreciation &
Tax
989.03 763.16 775.32 823.3 1,305.86
Depreciation 224.68 204.46 187.19 163.03 148.76
Profit Before Tax 764.35 558.7 588.13 660.27 1,157.10
Tax 177.75 150.21 153.35 208.22 207.92
Profit After Tax 586.6 408.49 434.78 452.05 949.18
Adjustment below Net Profit 0.4 0 0 0 0
P & L Balance brought forward 1,943.42 1,869.33 1,733.32 1,574.10 967.07
Appropriations 351.43 334.4 298.77 292.83 342.15
P & L Bal. carried down 2,178.99 1,943.42 1,869.33 1,733.32 1,574.10
Equity Dividend 254.76 254.76 218.93 211.65 211.25
Preference Dividend 0 0 0 0 0
Corporate Dividend Tax 38.01 38.79 36.36 35.97 35.9
Equity Dividend (%) 100 100 90 90 90
Earning Per Share (Rs.) 21.53 14.51 16.37 17.69 39.02
Book Value 196.89 186.04 176.02 164.06 152.6
Extraordinary Items -75.82 -19.02 -22.1 -53.65 386.64




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CHAPTER:-4


COMMON
SIZE
STATEMENTS








CHAPTER:-4
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COMMON SIZE STATEMENTS

INTRODUCTION TO COMMON SIZE STATEMENT

A Common Size statement may be defined as a balance sheet or
income statement in which items are expressed in percentage rather
than in absolute rupees. It is a useful way of analyzing financial
statements by converting them into common size statements by
expressing absolute rupee amounts into percentages. When this method
is pursued, the income statement exhibits each expense item or group
of expense items as a percentage of net sales, and net sales are taken at
100 per cent. Similarly, each individual asset and liability classification
is shown as a percentage of total assets and liabilities respectively.


Common size statements prepared for one firm over the years would
high light the relative changes in each group of expenses, assets and
liabilities. These statements can be equally useful for interfirm
comparisons, given the fact that absolute figure of two firms of the










COMMON SIZE BALANCE SHEET
Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
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SOURCE OF
FUNDS

Share Capital
2.97% 3.24% 3.37% 3.12% 3.96%
Reserves & Surplus
55.60% 57.11% 55.88% 48.09% 56.42%
Total Shareholders
Funds
58.57% 60.36% 59.24% 51.22% 60.38%
LOANS FUNDS

Secured Loans
2.91% 3.22% 3.45% 3.31% 0.81%
Unsecured Loans
38.52% 36.42% 37.31% 45.47% 38.81%
Total
41.43% 39.64% 40.76% 48.78% 39.62%
Total
100.00% 100.00% 100.00% 100.00% 100.00%
APPLICATION
OF FUNDS

Gross Block
50.20% 50.25% 52.61% 47.81% 55.64%
Less: Accum.
Depreciation
29.07% 30.03% 30.58% 27.31% 32.93%
Net Block
21.13% 20.21% 22.03% 20.50% 22.71%
Capital Work in
Progress
3.10% 3.81% 3.29% 4.08% 2.86%
TOTAL
24.23% 24.03% 25.31% 24.58% 25.57%
Investments
53.86% 62.41% 67.86% 59.37% 63.25%
CURRENT
ASSETS,LOANS &
ADV.

Inventories
14.63% 8.87% 8.45% 12.76% 11.12%
Sundry Debtors
17.35% 9.22% 8.04% 13.29% 10.81%
Cash and Bank
Balance
10.41% 10.17% 9.86% 8.48% 4.69%
Loans and Advances
8.52% 7.55% 5.59% 13.91% 12.04%
TOTAL
50.91% 35.81% 31.95% 48.44% 38.66%
LESS:-Current
Liabilities
25.22% 18.35% 20.24% 27.44% 21.54%
LESS:-Provisions
3.79% 3.90% 4.89% 4.95% 5.95%
Net Current Assets
21.91% 13.57% 6.83% 16.05% 11.17%
Miscellaneous
Expenses not w/o
0.00% 0.00% 0.00% 0.00% 0.01%
Total
100.00% 100.00% 100.00% 100.00% 100.00%
Contingent Liab.
14.51% 16.56% 15.56% 16.87% 41.68%

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INTERPRETATION OF BALANCE SHEET

In the common size statement of the balance sheet
total of the both the side source of funds and application of
funds is assumed as hundred Every figure in that is expressed in
percentage. It helps us to knowing weightage of each and every
item.

From the analysis of Common Size Statement.

Share of Share Capital is more or less same. So we can say
that Capital Structure is stable. Investment & differed tax is
also constant.

Percentage of secured loan is decreasing so it is good but at
the same time percentage of unsecured loan is also
increasing.

Fixed asstes are increasing so company is expanding its
business. And at the same time depreciation is also
increasing.

Percentage of Debtors and loans and Advances in the total is
decreasing. So we can say that company is efficiently collecting
money.
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0%
8%
8%
0%
5%
6%
14%
7%
4%
3%
0%
3%
7%
2%
2%
1%
1%
7%
3%
1%
3%
0%
14%
8-Mar
SOURCE OF FUNDS
Share Capital
Reserves & Surplus
Total Shareholders Funds
LOANS FUNDS
Secured Loans
Unsecured Loans
Total
Total
APPLICATION OF FUNDS
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
TOTAL
Investments
CURRENT ASSETS,LOANS & ADV.
Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances
TOTAL
LESS:-Current Liabilities
LESS:-Provisions
Net Current Assets
Miscellaneous Expenses not w/o
Total
0%
8%
9%
0%
5%
6%
14%
7%
4%
3%
1%
3%
9%
1%
1%
1%
1%
5%
3%
1%
2%
0%
14%
9-Mar
SOURCE OF FUNDS
Share Capital
Reserves & Surplus
Total Shareholders Funds
LOANS FUNDS
Secured Loans
Unsecured Loans
Total
Total
APPLICATION OF FUNDS
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
TOTAL
Investments
CURRENT ASSETS,LOANS & ADV.
Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances
TOTAL
LESS:-Current Liabilities
LESS:-Provisions
Net Current Assets
Miscellaneous Expenses not w/o
Total
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S.V. INSTITUTE OF MANAGEMENT Page 28





0%
8%
9%
0%
5%
6%
14%
8% 4%
3%
0%
4%
10%
1%
1%
1%
1%
5%
3%
1%
1% 0%
14%
10-MAR
SOURCE OF FUNDS
Share Capital
Reserves & Surplus
Total Shareholders Funds
LOANS FUNDS
Secured Loans
Unsecured Loans
Total
Total
APPLICATION OF FUNDS
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
TOTAL
Investments
CURRENT ASSETS,LOANS & ADV.
Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances
TOTAL
LESS:-Current Liabilities
LESS:-Provisions
Net Current Assets
Miscellaneous Expenses not w/o
Total
0%
7%
7% 0%
6%
7%
14%
7%
4%
3%
1%
3%
8%
2%
2%
1%
2%
7%
4%
1%
2% 0%
14%
11-MAR
SOURCE OF FUNDS
Share Capital
Reserves & Surplus
Total Shareholders Funds
LOANS FUNDS
Secured Loans
Unsecured Loans
Total
Total
APPLICATION OF FUNDS
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
TOTAL
Investments
CURRENT ASSETS,LOANS & ADV.
Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances
TOTAL
LESS:-Current Liabilities
LESS:-Provisions
Net Current Assets
Miscellaneous Expenses not w/o
Total
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 29












1%
8%
8%
0%
5%
6%
14%
8%
5%
3%
0%
4%
9%
2%
2%
1%
2%
5%
3%
1%
2% 0%
14%
12-Mar
SOURCE OF FUNDS
Share Capital
Reserves & Surplus
Total Shareholders Funds
LOANS FUNDS
Secured Loans
Unsecured Loans
Total
Total
APPLICATION OF FUNDS
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
TOTAL
Investments
CURRENT ASSETS,LOANS & ADV.
Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances
TOTAL
LESS:-Current Liabilities
LESS:-Provisions
Net Current Assets
Miscellaneous Expenses not w/o
Total
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 30


COMMON SIZE PROFIT& LOSS ACCOUNT
Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Sales Turnover 100.00% 100.00% 100.00% 100.00% 100.00%
Other Income 3.44% 1.67% 4.66% 2.19% 16.09%
Stock Adjustments 5.03% 0.16% -3.10% 1.12% 0.61%
Total Income 108.47% 101.83% 101.55% 103.31% 116.70%
Raw Materials 61.78% 54.30% 50.50% 64.77% 46.45%
Excise Duty 1.95% 1.96% 1.82% 2.04% 4.05%
Power & Fuel Cost 8.41% 8.83% 7.80% 7.14% 11.40%
Other Manufacturing Expenses 4.25% 4.44% 4.59% 3.14% 5.25%
Employee Cost 2.97% 3.62% 3.71% 2.33% 4.03%
Selling and Administration Expenses 9.50% 10.20% 10.03% 6.02% 10.10%
Miscellaneous Expenses 4.88% 3.69% 5.30% 6.01% 3.47%
Less: Preoperative Expenditure Capitalised 0.00% 0.16% 0.00% 0.03% 0.00%
Profit before Interest, Depreciation & Tax 14.72% 14.93% 17.80% 11.88% 31.94%
Interest & Financial Charges 2.58% 3.12% 3.73% 2.24% 0.90%
Profit before Depreciation & Tax 12.14% 11.81% 14.06% 9.64% 31.04%
Depreciation 2.76% 3.17% 3.40% 1.91% 3.54%
Profit Before Tax 9.38% 8.65% 10.67% 7.73% 27.50%
Tax 2.18% 2.33% 2.78% 2.44% 4.94%
Profit After Tax 7.20% 6.32% 7.89% 5.30% 22.56%
Adjustment below Net Profit 0.00% 0.00% 0.00% 0.00% 0.00%
P & L Balance brought forward 23.86% 28.94% 31.44% 18.44% 22.99%
Appropriations 4.31% 5.18% 5.42% 3.43% 8.13%
P & L Bal. carried down 26.75% 30.09% 33.91% 20.30% 37.42%
Equity Dividend 3.13% 3.94% 3.97% 2.48% 5.02%
Preference Dividend 0.00% 0.00% 0.00% 0.00% 0.00%
Corporate Dividend Tax 0.47% 0.60% 0.66% 0.42% 0.85%
Equity Dividend (%) 1.23% 1.55% 1.63% 1.05% 2.14%
Earning Per Share (Rs.) 0.26% 0.22% 0.30% 0.21% 0.93%
Book Value 2.42% 2.88% 3.19% 1.92% 3.63%
Extraordinary Items -0.93% -0.29% -0.40% -0.63% 9.19%
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 31



INTEPRETATION OF PROFIT & LOSS


In the common size statement of profit & loss
account instead of taking total as base here sales is taken as base and
basis of that all the other elements are weighed.

From the analysis of common Size Statement.

Except sales there is no other major income of SIL. Because we
can see percentage of other income is very less.

Most important thing that we can analyze is manufacturing and
other expenses. Proportion is very high. It is always above 80%
and still it is increasing. This is the main reason behind decrease in
profit.

Share of Excise duty and Sales Tax is decreasing.

PBT & PAT of SILis increasing every year but it is still very less.









TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 32





51%
2%
31%
7%
5%
4%
8-Mar
Sales Turnover
Other Income
Raw Materials
Profit before Interest, Depreciation &
Tax
Profit Before Tax
Profit After Tax
54%
1%
29%
8%
5%
3%
9-Mar
Sales Turnover
Other Income
Raw Materials
Profit before Interest, Depreciation &
Tax
Profit Before Tax
Profit After Tax
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 33







52%
3%
26%
9%
6%
4%
10-Mar
Sales Turnover
Other Income
Raw Materials
Profit before Interest, Depreciation
& Tax
Profit Before Tax
Profit After Tax
52%
1%
34%
6%
4%
3%
11-Mar
Sales Turnover
Other Income
Raw Materials
Profit before Interest, Depreciation
& Tax
Profit Before Tax
Profit After Tax
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 34










41%
7%
19%
13%
11%
9%
12-Mar
Sales Turnover
Other Income
Raw Materials
Profit before Interest, Depreciation
& Tax
Profit Before Tax
Profit After Tax
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 35








CHAPTER-5


TREND
ANALSIS









TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 36


TREND ANALSIS OF PROFIT & LOSS ACONUT
Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
INCOME
Sales Turnover 100.00% 79.30% 67.67% 104.79% 51.65%
Other Income 100.00% 38.54% 91.60% 66.64% 241.41%
Stock Adjustments 100.00% 2.46% -41.81% 23.34% 6.28%
Total Income 100.00% 74.44% 63.36% 99.81% 55.56%
EXPENDITURE
Raw Materials 100.00% 69.70% 55.32% 109.87% 38.83%
Excise Duty 100.00% 79.83% 63.10% 109.80% 107.25%
Power & Fuel Cost 100.00% 83.23% 62.77% 88.95% 70.00%
Other Manufacturing Expenses 100.00% 82.76% 73.10% 77.31% 63.83%
Employee Cost 100.00% 96.70% 84.47% 82.20% 70.10%
Selling and Administration Expenses 100.00% 85.13% 71.43% 66.33% 54.87%
Miscellaneous Expenses 100.00% 60.04% 73.53% 129.16% 36.76%
Less: Preoperative Expenditure
Capitalised

TOTAL 100.00% 73.77% 60.46% 102.26% 46.70%
Profit before Interest, Depreciation &
Tax
100.00% 80.44% 81.81% 84.60% 112.06%
Interest & Financial Charges 100.00% 95.86% 97.88% 90.98% 18.09%
Profit before Depreciation & Tax 100.00% 77.16% 78.39% 83.24% 132.03%
Depreciation 100.00% 91.00% 83.31% 72.56% 66.21%
Profit Before Tax 100.00% 73.09% 76.95% 86.38% 151.38%
Tax 100.00% 84.51% 86.27% 117.14% 116.97%
Profit After Tax 100.00% 69.64% 74.12% 77.06% 161.81%
Adjustment below Net Profit 100.00% 0.00% 0.00% 0.00% 0.00%
P & L Balance brought forward 100.00% 96.19% 89.19% 81.00% 49.76%
Appropriations 100.00% 95.15% 85.02% 83.33% 97.36%
P & L Bal. carried down 100.00% 89.19% 85.79% 79.55% 72.24%
Equity Dividend 100.00% 100.00% 85.94% 83.08% 82.92%
Preference Dividend
Corporate Dividend Tax 100.00% 102.05% 95.66% 94.63% 94.45%
Equity Dividend (%) 100.00% 100.00% 90.00% 90.00% 90.00%
Earning Per Share (Rs.) 100.00% 67.39% 76.03% 82.16% 181.24%
Book Value 100.00% 94.49% 89.40% 83.33% 77.51%
Extraordinary Items 100.00% 25.09% 29.15% 70.76% -509.9%

TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 37

CHARTS EROM P& L STATEMENT


INCOME

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Total Income 100.00% 74.44% 63.36% 99.81% 55.56%



INTERPRETATION:-

Items included in the total income are Income from
Sales, Dividend from Long Term Investment, Misc. Income and Duty
Drawback.
From the trend Analysis we can see that total income is
fluctuating. It is highest in 11-MAR. Here Income From Sales is
increasing every year but Manufacturing Expenses are also increasing
so that net Income is stable. Other Income is increasing Every year.
Interest Expenses is increasing every year.Misc.Income of the
Company is increasing every year.
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Total Income
Total Income
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 38

EXPENDITURE

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
TOTAL 100.00% 73.77% 60.46% 102.26% 46.70%



INTERPRETATION

Her Expenditure of the Company include Manufacturing &
Other Expenses, Excise, Duty, Employee Cost, Power & Fule Cost.

Because sales increases Manufacturing Expenses are also
increases every year. In the Manufacturing Expenses Raw Material,
Operational Expenses are also increasing every year.

Here Interest Expenses of the Company is decreasing &
Depreciation of the Assets is increasing.



0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
TOTAL
TOTAL
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 39


PROFIT AFTER TAX

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Profit After Tax 100.00% 69.64% 74.12% 77.06% 161.81%



INTERPRETATION

Here trend is more or less same as PBT.PAT is arrived
by subtracting provision from PBT. Provision is of Two Type-Deferred
Tax & Current Tax. If provision is more then PAT is decreasing and
vise-versa. In the initial years the PAT start increasing then it falls in
the year 8-MAR. Provision for tax is very high in the last three years
thats why PAT decreases.






0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
180.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Profit After Tax
Profit After Tax
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 40


PROFIT BEFORE TAX

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Profit Before Tax 100.00% 73.09% 76.95% 86.38% 151.38%



INTERPRETATION

Here PBT of the Firm is arrived by subtracting from
Income. PBT of the Firm is increasing every year but it falls in the year
8- MAR. PBT of the Firm falls because of High Manufacturing
Expenses and Other Expenditure.








0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Profit Before Tax
Profit Before Tax
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 41

APPROPRIATION

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Appropriations 100.00% 95.15% 85.02% 83.33% 97.36%





INTERPRETATION

Here appropriation include transfer to General Reserve, Proposed
Dividend, etc.

The amount transfers to General Reserve and paid as propose
Dividend is fluctuating. There is no fix amount transferred every year.
Thats why here in appropriation mixed trend can be seen.



0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Appropriations
Appropriations
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 42



BALANCE CARRIEND TO BALANCE SHEET

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
P & L Bal. carried down 100.00% 89.19% 85.79% 79.55% 72.24%




INTERPRETATION
Balance carried to Balance Sheet is in decreasing trend. It
was highest in 8-MAR but then after it started decreasing up to 8-
MAR. Then it started increasing.





0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
P & L Bal. carried down
P & L Bal. carried down
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 43


TAX

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Tax 100.00% 84.51% 86.27% 117.14% 116.97%




INTERPRETATION

In the tax two type of Provision are made- Current Tax and
Deferred Tax.
Provision for tax is very less in the initial Three Years then in
the last Three years it is very high thats why the Net Profit Decreases.




0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Tax
Tax
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 44


TREND ANALSIS OF BALANCE SHEET

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
SOURCE OF FUNDS

Share Capital
100.00% 100.00% 95.49% 92.31% 91.85%
Reserves & Surplus
100.00% 94.19% 84.82% 76.10% 70.08%
Total Shareholders Funds
100.00% 94.49% 85.37% 76.92% 71.19%
LOANS FUNDS

Secured Loans
100.00% 101.53% 100.12% 100.22% 19.27%
Unsecured Loans
100.00% 86.70% 81.74% 103.84% 69.58%
Total
100.00% 87.74% 83.03% 103.59% 66.05%
Total
100.00% 91.69% 84.40% 87.97% 69.06%
APPLICATION OF FUNDS

Gross Block
100.00% 91.77% 88.45% 83.78% 76.54%
Less: Accum. Depreciation
100.00% 94.73% 88.79% 82.64% 78.23%
Net Block
100.00% 87.71% 87.98% 85.36% 74.21%
Capital Work in Progress
100.00% 112.87% 89.55% 115.77% 63.83%
TOTAL
100.00% 90.93% 88.18% 89.25% 72.88%
Investments
100.00% 106.24% 106.32% 96.96% 81.09%
CURRENT ASSETS,LOANS &
ADV.

Inventories
100.00% 55.56% 48.77% 76.71% 52.48%
Sundry Debtors
100.00% 48.76% 39.14% 67.42% 43.04%
Cash and Bank Balance
100.00% 89.56% 79.91% 71.62% 31.13%
Loans and Advances
100.00% 81.27% 55.40% 143.59% 97.52%
TOTAL
100.00% 64.50% 52.97% 83.70% 52.44%
LESS:-Current Liabilities
100.00% 66.71% 67.72% 95.74% 58.98%
LESS:-Provisions
100.00% 94.49% 108.93% 114.95% 108.50%
Net Current Assets
100.00% 56.78% 26.31% 64.45% 35.22%
Miscellaneous Expenses not w/o

Total
100.00% 91.69% 84.40% 87.97% 69.06%
Contingent Liabilities
100.00% 104.66% 90.48% 102.29% 198.35%
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 45


CHARTS FROM BALANCE SHEET

SHARE CAPITAL

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Share
Capital
100.00% 100.00% 95.49% 92.31% 91.85%



INTERPRETATION

As we can see that share capital as the TATA CHEMICAL LTD is
stable through out last five years. The company has gone for public
issue, or redemption as share capital in last five years.

If the every years increasing of the share capital. 8-MAR to 12-MAR
increasing but 11-MAR and 12-MAR it will be same share capital.



86.00%
88.00%
90.00%
92.00%
94.00%
96.00%
98.00%
100.00%
102.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Share Capital
Share Capital
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 46

RESERVE & SURPLUS

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Reserves & Surplus
100.00% 94.19% 84.82% 76.10% 70.08%



INTERPRETATION

Reserves of the TATA CHEMICAL LTD Includes Capital reserve,
Capital Redemption Reserve, And Gen. Reserve and in surplus balance
transfer from P & L.

Capital Reserve, and C.R.R of the company is same throughout
last five years.

General reserve of the company is fluctuating because it depends
on the amount transferred from P & L A/c. and the amount
deducted as differed tax liability.

0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Reserves & Surplus
Reserves & Surplus
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 47


SECURED LOAN

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Secured Loans
100.00% 101.53% 100.12% 100.22% 19.27%



INTERPRETATION
Secured loan are these loans against which security of assets is given
under secured loan of TATA CHEMICAL LTD Includes working
Capital. Short term loans & loans From financial institution.

Secured loan of the TATA CHEMICAL LTD is decreasing.Now only
working capital loan is remained in secured loan.







0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Secured Loans
Secured Loans
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 48

FIXED ASSETS

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
TOTAL
100.00% 90.93% 88.18% 89.25% 72.88%



INTERPRETATION

Fixed assets include land & building, Plant & Machinery, Furniture &
Equipment, Vehicales and agriculture,equipment.

Amount invested in land is constant.

Plant & Machinery of Tata Chemical Ltd is increasing every year.

Other assets are also remained constant.

The reason behind decrease in the fixed assets is high
depreciation.


0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
TOTAL
TOTAL
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 49


CURRENT ASSETS, LOANS & ADV.

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
TOTAL
100.00% 64.50% 52.97% 83.70% 52.44%



INTERPRETATION

Inventories, sundry debtors, cash & bank balance, loans and adv. Are
included under the head of current assets.

Inventories of the firm is fluctuating. There is no fixed trend.

Sundry debtors of Tata chemical Ltd are decreasing it impiles efficient
collection from debtors.

Cash & bank balance of firm is increases every year.



0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
TOTAL
TOTAL
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 50


CURRENT LIABILITIES & PROVISION

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
LESS:-Current Liabilities
100.00% 66.71% 67.72% 95.74% 58.98%



INTERPRETATION

Current liabilities provision of Tata Chemical Ltd includes sundry
creditors, unclamined dividend interest accured but not due on loans,
proposed dividend.

sundry creditor are in decrease every year.

unclaimed dividend is also increase every year

There is mixed trend in provisions

Overall trend in current liability &provision is increase so that is
not good.


0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
LESS:-Current Liabilities
LESS:-Current Liabilities
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 51


TREND ANALYSIS OF CASH FLOW STATEMENT

PARTICULAR 8-MAR 9-MAR 10-MAR 11-MAR 12-MAR
Net Profit before Tax 100.00% 57.06% 50.83% 96.88% 119.56%
Adjustments for :
Foreign Exchange (Gain) / Loss on
borrowings
100.00% -743.04% -355.93% -0.08% -1425.27%
Employee Separation Compensation
amortisation
100.00% 15.59% 0.00% 13266.18% 1425.00%
Depreciation 100.00% 109.59% 125.83% 6.78% 287.04%
Borrowing Costs (net) 100.00% -258.65% 0.00% 2849.96% -297.08%
Amortisation of Capital Grant

Profit on sale of investments 100.00% -40.01% -43.04% 3.56% 0.00%
Dividend Income
Investment income 100.00% -25.45% 106.72% 0.25% -54.71%
Provision for doubtful debts and advances 100.00% -
129988.89%
-
103577.78%
-211.11% 474444.44%
Provision for employee benefits 100.00% 22.48% -16.86% 0.00% -467.05%
Reduction in carrying cost of current
investments .

Exchange Difference
Loss on assets sold or discarded 100.00% 1729.41% 562.85% 288.24% 803.10%

Operating Profit before Working Capital
Changes
100.00% 168.67% 130.65% 248.48% 321.81%
Adjustments for :
Trade and other receivables 100.00% 101.07% -171.89% 164.42% 545.88%
Inventories 100.00% 332.62% -231.65% 100.64% 474.76%
Trade payables, other liabilities and
provisions
100.00% -92.15% 196.56% 13.73% 284.63%
Payment towards employee separation
compensation .
100.00% -52268.07% -197.48% 0.00% 42.86%
Payment towards employee separation
compensation

Cash Generated from Operations 100.00% -0.09% 135.83% 192.45% 0.00%
Taxes paid 100.00% -347.59% 56.09% -176.72% 116.13%
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 52

Net Cash from Operating Activities 100.00% 120.25% 176.08% 200.38% 259.79%

B Cash Flow from Investing Activities
Acquisition of fixed assets 100.00% 311.21% 122.01% 412.32% 528.96%
Proceeds on sale of fixed assets 100.00% 164.29% 16.67% 6283.33% 8045.24%
Proceeds on sale of current investments 100.00% 41.62% 81.57% 79.43% -0.03%
Purchase of current investments
Purchase of other investments 100.00% 7930.04% 0.00% 0.00% -8947.40%
Proceeds on sale of other investments 100.00% 0.00% 0.00% -157.50% -11.24%
Investment in subsidiary 100.00% 9.99% 17.73% -0.49% 238.57%
Investment in Joint Venture 100.00% 86.20% 0.00% 0.00% 3771.60%
Repayment of loan by subsidiary 100.00% -30.85% -0.64% 0.00% 20.99%
Interest received 100.00% 127.18% 88.11% 1.62% 589.59%
Dividend received 100.00% 94.25% 95.62% 75.58% 0.00%
Net Cash used in Investing Activities 100.00% 40.58% 2.69% 66.96% 44.23%

C Cash Flow from Financing Activities
Repayment of borrowings 100.00% -269.30% 309.01% -573.16% -1083.95%
Proceeds of borrowings 100.00% 79.98% 26.14% 18.12% 0.00%
Interest paid 100.00% -415.33% 447.93% 1937.50% 4784.93%
Foreign exchange loss realised 100.00% -25.15% -71.95% 5298.45% 9284.33%
Dividends paid including distribution tax 100.00% -122.67% 122.82% 194.97% 247.16%
Net Cash used in Financing Activities 100.00% 32.54% 47.12% 24.08% -13.02%
Net Increase/ (Decrease) in Cash and Cash
equivalents .
100.00% 184.68% 48.75% 199.33% 140.18%
Cash and Cash equivalents as at 1st April 100.00% 293.85% 676.07% 1226.61% 1423.62%
add: cash and bank
(Opening Balance)

Cash and Cash equivalents as at 31st March 100.00% 1311.33% -709.36% 602.46% 0.00%
(Closing Balance) 100.00% 230.07% 256.69% 484.47% 604.41%


TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 53


CHARTS FROM CASH FLOW STATEMENT

CASH FLOW FROM OPERATING ACTIVITIES

PARTICULAR 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Net Cash from Operating Activities 100.00% 120.25% 176.08% 200.38% 259.79%



INTERPRETATION

Cash flow from operating activities includes various items
such as Depreciation, voluntary retirement compensation, interest
charged, interest paid, Inventories and Cash generated etc.

Over all trend of the Cash Generated From Operating Activities is
mixed trend. Because every years increasing.

Depreciation of assets, voluntary Retirement compensation is
continuously increasing.
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Net Cash from Operating Activities
Net Cash from Operating
Activities
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 54


CASH FLOW FROM INVESTING ACTIVITIES

PARTICULAR 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Net Cash used in Investing Activities 100.00% 40.58% 2.69% 66.96% 44.23%




INTERPRETATION

Cash flow from investing activities includes Purchase of investment ,
Sale of investment , Dividend etc.
Cash flow from investing activities has increasing trend except
year-8 MAR.

Amount received as dividend is increasing every year.

Amount invested in purchase of fixed assets is reduced every year.



0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Net Cash used in Investing Activities
Net Cash used in Investing
Activities
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 55


CASH FLOW FROM FINANCING ACTIVITIES

PARTICULAR 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Net Cash used in Financing Activities 100.00% 32.54% 47.12% 24.08% -13.02%



INTERPRETATION

Cash fiow from financing activities includes Increase / Decrease in
borrowings, Dividend and tax paid there on.

Net cash flow from financing activities has negative value in all
the years except 12- MAR.

Dividend & Tax paid is first decreases then it started increasing.




-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
Net Cash used in Financing Activities
Net Cash used in Financing
Activities
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 56







CHAPTER-6




CASH
FLOW
STATEMENT




TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 57



ANALYSIS OF CASH FLOW STATEMENT

In financial accounting, a cash flow statement, also known as statement of cash flows or
funds flow statement is a financial statement that shows how changes in balance sheet
accounts and income affect cash and cash equivalents, and breaks the analysis down to
operating, investing, and financing activities. Essentially, the cash flow statement is
concerned with the flow of cash in and cash out of the business. The statement captures
both the current operating results and the accompanying changes in the balance sheet. As an
analytical tool, the statement of cash flows is useful in determining the short-term viability
of a company, particularly its ability to pay bills. International Accounting Standard 7 (IAS
7) is the International Accounting Standard that deals with cash flow statements.

People and groups interested in cash flow statements include:
Accounting personnel, who need to know whether the organization will be able to cover
payroll and other immediate expenses
Potential lenders or creditors, who want a clear picture of a company's ability to repay
Potential investors, who need to judge whether the company is financially sound
Potential employees or contractors, who need to know whether the company will be able
to afford compensation
Shareholders of the business.
The cash flow statement reflects a firm's liquidity.
provide information on a firm's liquidity and solvency and its ability to change
cash flows in future circumstances
provide additional information for evaluating changes in assets, liabilities and
equity
improve the comparability of different firms' operating performance by
eliminating the effects of different accounting methods
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 58


CASH FLOW STATEMENT

PARTICULAR
8-MAR 9-MAR 10-MAR 11-MAR 12-MAR
Net Profit before Tax 1,157.10 660.27 588.13 1,120.96 1,383.43
Adjustments for :
Foreign Exchange (Gain) / Loss on borrowings -35.69 265.19 127.03 0.03 508.68
Employee Separation Compensation amortisation 3.4 0.53 0 451.05 48.45
Depreciation 148.76 163.03 187.19 10.08 427
Borrowing Costs (net) 12.31 -31.84 0 350.83 -36.57
Amortisation of Capital Grant 0 0 0 -4.32 0

Profit on sale of investments -478.01 191.23 205.73 -17.01 0
Dividend Income 0 0 0 -64.25 508.68
Investment income -88.56 22.54 -94.51 -0.22 48.45
Provision for doubtful debts and advances 0.09 -116.99 -93.22 -0.19 427
Provision for employee benefits 7.83 1.76 -1.32 0 -36.57
Reduction in carrying cost of current investments . 0 15.94 0 0.25 0
Exchange Difference 0 0 0 -29.12 135.67
Loss on assets sold or discarded 3.23 55.86 18.18 9.31 25.94

Operating Profit before Working Capital Changes 730.46 1,232.09 954.36 1,815.04 2,350.67
Adjustments for :
Trade and other receivables -196.42 -198.53 337.62 -322.95 -
1,072.21
Inventories -151.16 -502.79 350.16 -152.13 -717.65
Trade payables, other liabilities and provisions 338.77 -312.16 665.88 46.53 964.23
Payment towards employee separation
compensation .
-1.19 621.99 2.35 0 -0.51
Payment towards employee separation
compensation

Cash Generated from Operations 720.46 -0.66 978.61 1,386.49 0
Taxes paid -241.65 839.94 -135.54 427.05 -280.64
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 59

Net Cash from Operating Activities 478.81 575.77 843.07 959.44 1,243.89

B Cash Flow from Investing Activities
Acquisition of fixed assets -150.26 -467.62 -183.33 -619.55 -794.82
Proceeds on sale of fixed assets 0.42 0.69 0.07 26.39 33.79
Proceeds on sale of current investments 13,883.73 5,777.84 11,324.34 11,028.20 -3.97
Purchase of current investments 0.00 0 -
10,794.82
10,901.23 99.31
Purchase of other investments -73.23 -
5,807.17
0 0 6,552.18
Proceeds on sale of other investments 517.38 0 0 -814.86 -58.17
Investment in subsidiary -2,745.30 -274.3 -486.76 13.32 -
6,549.42
Investment in Joint Venture -5 -4.31 0 0 -188.58
Repayment of loan by subsidiary 167.4 -51.65 -1.07 0 35.13
Interest received 13.54 17.22 11.93 0.22 79.83
Dividend received 85.01 80.12 81.29 64.25 0
Net Cash used in Investing Activities -1,796.98 -729.18 -48.35 -1,203.26 -794.72

C Cash Flow from Financing Activities
Repayment of borrowings -258.42 695.93 -798.55 1,481.17 2,801.15
Proceeds of borrowings 2,006.05 1,604.37 524.29 363.41 0
Interest paid -42.21 175.31 -189.07 -817.82 -
2,019.72
Foreign exchange loss realised -5.17 1.3 3.72 -273.93 -480
Dividends paid including distribution tax -200.96 246.52 -246.81 -391.81 -496.7
Net Cash used in Financing Activities 1,499.29 487.91 706.42 361.02 -195.27
Net Increase/ (Decrease) in Cash and Cash
equivalents .
181.12 334.5 88.3 361.02 253.9
Cash and Cash equivalents as at 1st April 94.48 277.63 638.75 1,158.90 1,345.04
add: cash and bank 0 0 0 56.71 0.17
(Opening Balance) 0 0 0 0 78.92
Cash and Cash equivalents as at 31st March 2.03 26.62 -14.4 12.23 0
(Closing Balance) 277.63 638.75 712.65 1,345.04 1,678.03
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 60




CHAPTER.:-7
RATIO
ANALSIS




TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 61


CURRENT RATIO (Times):-

= CURRENT ASSETS/ CURRENT LIABITIES

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
C.A 4,361.01 2812.92 2309.9 3,650.23 2286.78
C.L 2,160.14 1,441.04 1,462.92 2,068.05 1,273.98
CURRENT
RATIO
2.02 1.95 1.58 1.77 1.79



INTERPRETATION
Current ratio shows ratio between assets &Liabilities.

The ideal Current Ratio is 2:1.

Here the Current Ratio is Above 2:1 in the beginning years but then
after it decreases.

The main reason behind this is increasing liabilities.


0.00
0.50
1.00
1.50
2.00
2.50
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
CURRENT RATIO
CURRENT RATIO
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 62


QUICK RATIO (TIMES):-

=QUICK ASSETS / QUICK LIABILITIES

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
QUICK ASSETS 3,107.79 2,116.62 1,698.71 2,688.88 1,629.14
C.L 2,160.14 1,441.04 1,462.92 2,068.05 1,273.98
QUICK RATIO 143.87% 146.88% 116.12% 130.02% 127.88%



INTERPRETATION
Quick Ratio is also known as Acid Test ratio.

Ideal Quick Ratio is 1:1.

Here this ratio is above the Ideal Average so it is good.

It is high in the initial years but then its started decreasing.

The Main reason for this is decreasing in quick Assets.


0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
QUICK ratio
QUICK ratio
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 63



NET WORKING CAPITAL RATIO(RS):-

=TOTAL CURRENT ASSETS- CURRENT LIABILITIES

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
TOTAL C.A 4,361.01 2812.92 2309.9 3,650.23 2286.78
C.L 2,160.14 1,441.04 1,462.92 2,068.05 1,273.98
N.W.C 2,200.87 1,371.88 846.98 1,582.18 1,012.80



INTERPRETATION

Here difference between Current Assets and current liability is givin .it
this ratio indicates that firm operate its cash effectively and no where
finding problem in setting its liabilities.here net working capital of the
firm is continuously deacrsing so its is bad for the company.


0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
N.W.C
N.W.C
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 64


NET PROFIT RATIO(%):-

=NET PROFIT AFTER TAX /SALES *100

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
N.P 586.6 408.49 434.78 452.05 949.18
SALES 8,146.21 6,459.73 5,512.73 8,536.60 4,207.13
N.P RATIO 7.20% 6.32% 7.89% 5.30% 22.56%





INTERPRETATION:-

Net profit ratio saw percentage of profit to sales higher the ratio good for the
company . here the net profit of the company is incearsing every year but its is deacresing in
the year 11 march .the reason for very low net profit ratio is high manufacturing exp.,
interest burden ,depreciation and high provision for taxation is also reason behind
deacresing profit .



0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
N.P RATIO
N.P RATIO
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 65

RATE OF RETURN ON INVEATMENT (%):-

=PBIT/TOTAL ASSETS *100


Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
PBIT 1,199.22 964.65 981.05 1,014.53 1,343.88
TOTAL ASSETS 8,565.92 7,854.30 7,229.47 7,535.40 5,915.52
R.O.R.O.I 14.00% 12.28% 13.57% 13.46% 22.72%






INTERPRITATION:-
Return on investment suggest how many percentage of return earned on
investment of rs 100 here this ratio is less in the initial years but if decreases drastically in
the year 12 march .the reason behind this is decreases in the profit .







0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
R.O.R.O.I
R.O.R.O.I
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 66

TOTAL ASSETS TURNOVER RATIO (TIMES):-

=SALES / TOTAL ASSETS

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
SALES
8,146.21 6,459.73 5,512.73 8,536.60 4,207.13
TOTAL ASSETS
8,565.92 7,854.30 7,229.47 7,535.40 5,915.52
TOTAL ASSET
TURNOVER RATIO
95.10% 82.24% 76.25% 113.29% 71.12%




INTERPRETATION:-

This ratio shows amount of assets used for prodcing the sales.

This ratio is continuously increasing from the initial years.

Main reason for increasing in this ratio is sales is increasing.

Higher this ratio good for the Company.


0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
TOTAL ASSET TURN. RATIO
TOTAL ASSET TURN. RATIO
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 67

NET FIXED ASSETS TURNOVER
RATIO(TIMES):-

= SALES / NET FIXED ASSETS

Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
SALES 8,146.21 6,459.73 5,512.73 8,536.60 4,207.13
NET F.A 6,689.28 6,788.80 6,735.68 6,325.93 5,253.98
NFATOR 1.22 0.95 0.82 1.35 0.80




INTERPRETATION:-
Higher the Fixed Assets Ratio shows good result and it shows efficient use of Fixed
Assets.

Here the ratio is increasing up till 11 march but then its decline.

The reason behind decline of ratio is increased innet fixed assets and reason behind increase
in ratio is increase in sales .


0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
NFATOR
NFATOR
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 68


DRS TURNOVER RATIO (DAYS):-


= AVERAGE DEBTORS/CREDIT SALES*365


Year 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
DEBTORS AVG. 742.915 1105.155 653.04 791.665 820.615
SALES 8,146.21 6,459.73 5,512.73 8,536.60 4,207.13
D.R 33.29 62.45 43.24 33.85 71.19





INTERPRETATION:-
Debtor ratio shows average days taken for collection of money from debtor .higher
this ratio bed for the company.
Here debtors ratio is fluctuating. For the first three year its decrease then it
increase .here of the company are increasing so the debtor is decreasing and in the 9
march and 12 march sales is decreasing
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
8-Mar 9-Mar 10-Mar 11-Mar 12-Mar
D.R
D.R
TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 69




CHAPTER-7

FINDING
&
CONCLUSION

TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 70



Finding & Conclusion

As per the Company situation it should reduce it so that it will be more
cash rotating which will be in turn used in the operation activities of in the
trade.

The investment of the company has decreased which shows that the
company should try in investing in other activities of try their hand in
other booming sector so that they will also help to gain some return on that
investment.

The major point is that the company is having a low or poor amount of the
cash flow statement and liduidity of the company and the amount for the
years 2012.

I have seen all these items in the trend analysis which shows a clearly a picture
of that where company is lacking back.




TATA CHEMICAL LTD
S.V. INSTITUTE OF MANAGEMENT Page 71



BIBLIOGRAPHY

Annual Report of TATA CHEMICAL LTD.

Web Site:- www.tatachemical.com


Financial Accounting - R Narayanaswamy

Chapter-11(Page No.525-583)