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

-------------------
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 553.67 553.67 580.67 6,203.30 6,203.45
Equity Share Capital 553.67 553.67 580.67 730.78 730.79
Share Application Money 0.00 0.00 147.06 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 5,472.52 5,472.66
Reserves 6,506.25 9,201.63 13,368.42 21,097.43 23,501.15
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 7,059.92 9,755.30 14,096.15 27,300.73 29,704.60
Secured Loans 2,468.18 2,191.74 3,758.92 3,520.58 3,913.05
Unsecured Loans 271.52 324.41 5,886.41 14,501.11 23,033.13
Total Debt 2,739.70 2,516.15 9,645.33 18,021.69 26,946.18
Total Liabilities 9,799.62 12,271.45 23,741.48 45,322.42 56,650.78
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 13,085.07 15,407.17 16,029.49 16,479.59 20,057.01
Less: Accum. Depreciation 5,845.49 6,699.85 7,486.37 8,223.48 9,062.47
Net Block 7,239.58 8,707.32 8,543.12 8,256.11 10,994.54
Capital Work in Progress 1,872.66 1,157.73 2,497.44 4,367.45 3,487.68
Investments 2,432.65 4,069.96 6,106.18 4,103.19 42,371.78
Inventories 1,872.40 2,174.75 2,332.98 2,604.98 3,480.47
Sundry Debtors 581.82 539.4 631.63 543.48 635.98
Cash and Bank Balance 246.68 288.35 446.51 465 463.58
Total Current Assets 2,700.90 3,002.50 3,411.12 3,613.46 4,580.03
Loans and Advances 2,234.96 1,994.46 4,025.95 34,582.84 5,884.61
Fixed Deposits 0.04 0.04 7,234.84 0.04 1,127.02
Total CA, Loans & Advances 4,935.90 4,997.00 14,671.91 38,196.34 11,591.66
Deffered Credit 0 0 0 0 0
Current Liabilities 4,247.43 4,552.39 6,349.24 6,842.26 8,965.76
Provisions 2,648.56 2,361.44 1,930.46 2,913.52 2,934.19
Total CL & Provisions 6,895.99 6,913.83 8,279.70 9,755.78 11,899.95
Net Current Assets -1,960.09 -1,916.83 6,392.21 28,440.56 -308.29
Miscellaneous Expenses 214.82 253.27 202.53 155.11 105.07
Total Assets 9,799.62 12,271.45 23,741.48 45,322.42 56,650.78

Contingent Liabilities 2,983.05 3,872.34 7,185.93 9,250.08 12,188.55

Book Value (Rs) 127.56 176.26 240.31 298.78 331.68
Profit & Loss account of Tata Steel ------------------- in Rs. Cr. -------------------
Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths

Income
Sales Turnover 15,867.62 17,136.92 19,756.84
Excise Duty 1,377.92 2,004.83 2,304.18
Net Sales 14,489.70 15,132.09 17,452.66
Other Income 108.75 252.58 362.12
Stock Adjustments 289.55 104.91 82.47
Total Income 14,888.00 15,489.58 17,897.25
Expenditure
Raw Materials 4,578.43 4,766.44 5,762.42
Power & Fuel Cost 778.3 897.57 1,027.84
Employee Cost 1,291.00 1,351.51 1,454.83
Other Manufacturing Expenses 1,440.72 1,466.83 1,561.40
Selling and Admin Expenses 259.74 255.93 244.92
Miscellaneous Expenses 679.86 727.12 805.99
Preoperative Exp Capitalised -204.82 -112.62 -236.02
Total Expenses 8,823.23 9,352.78 10,621.38
Mar '05 Mar '06 Mar '07

12 mths 12 mths 12 mths

Operating Profit 5,956.02 5,884.22 6,913.75

PBDIT 6,064.77 6,136.80 7,275.87
Interest 228.8 168.44 251.25
PBDT 5,835.97 5,968.36 7,024.62
Depreciation 618.78 775.1 819.29
Other Written Off 0 0 0
Profit Before Tax 5,217.19 5,193.26 6,205.33
Extra-ordinary items 80.79 47.5 57.29
PBT (Post Extra-ord Items) 5,297.98 5,240.76 6,262.62
Tax 1,823.82 1,734.38 2,040.47
Reported Net Profit 3,474.16 3,506.38 4,222.15
Total Value Addition 4,244.80 4,586.34 4,858.96
Preference Dividend 0 0 0
Equity Dividend 719.51 719.51 943.91
Corporate Dividend Tax 101.86 100.92 160.42
Per share data (annualised)
Shares in issue (lakhs) 5,534.73 5,534.73 5,804.73
Earning Per Share (Rs) 62.77 63.35 72.74
Equity Dividend (%) 130 130 155
Book Value (Rs) 127.56 176.26 240.31
Cr. -------------------
Mar '08 Mar '09

12 mths 12 mths

22,191.43 26,843.53
2,537.02 2,495.21
19,654.41 24,348.32
586.41 603.07
38.73 289.27
20,279.55 25,240.66

6,063.53 8,568.71
1,038.77 1,222.48
1,589.77 2,305.81
1,654.96 2,127.48
247.77 400.24
1,029.30 1,180.08
-175.5 -343.65
11,448.60 15,461.15
Mar '08 Mar '09

12 mths 12 mths

8,244.54 9,176.44
8,830.95 9,779.51
929.03 1,489.50
7,901.92 8,290.01
834.61 973.4
0 0
7,067.31 7,316.61
0 0
7,067.31 7,316.61
2,380.28 2,114.87
4,687.03 5,201.74
5,385.07 6,892.44
22.19 109.45
1,168.93 1,168.95
202.43 214.1

7,305.84 7,305.92
63.85 69.7
160 160
298.78 331.68
RATIO ANALYSIS

a)PROFITABILITY RATIOS
1-PROFIT MARGIN
YEAR PROFIT MARGIN PROFIT after TAX SALES
2005 21.8946508676159 3,474.16 15,867.62
2006 20.4609696491552 3,506.38 17,136.92
2007 21.3705734317836 4,222.15 19,756.84
2008 21.1209011767155 4,687.03 22,191.43
2009 19.3780028185563 5,201.74 26,843.53

2-RETURN ON EQUITY
YEAR ROE PROFIT AFTER TAX AVG. SHAREHOLDER'S EQUITY
2005 3,474.16
2006 3.30569147080729 3,506.38 1060.71
2007 4.45557771657116 4,222.15 947.61
2008 5.60006451921239 4,687.03 836.96
2009 4.82363905284291 5,201.74 1078.385

3-EARNINGS PER SHARE

YEAR EPS PROFIT AFTER TAX AVG. NO. OF EQUITY SHARES(lak
2005 62.7701802978646 3,474.16 5,534.73
2006 63.3523225161842 3,506.38 5,534.73
2007 72.7363718898209 4,222.15 5,804.73
 2008 64.1545667575529 4,687.03 7,305.84
2009 71.1989728877404 5,201.74 7,305.92

b)LIQUIDITY RATIOS

1-CURRENT RATIO
YEAR CR CURRENT ASSETS CURRENT LIABILITIES
2005 0.63589040902381 2,700.90 4,247.43
2006 0.659543668270952 3,002.50 4,552.39
2007 0.537248552582671 3,411.12 6,349.24
2008 0.528109133531903 3,613.46 6,842.26
2009 0.510835668141909 4,580.03 8,965.76

2-QUICK RATIO
YEAR QUICK RATIO QUICK ASSETS CURRENT LIABILITIES
2005 0.19505912987383 828.50 4,247.43
2006 0.181827567497512 827.75 4,552.39
2007 0.169806150027405 1,078.14 6,349.24
2008 0.147389897490011 1,008.48 6,842.26
2009 0.12263991005782 1,099.56 8,965.76
3-DEBTOR TURNOVER RATIO
YEAR DTR SALES AVG. DEBTORS
2005 106.867052801724 15,867.62 148.48
2006 93.4401308615049 17,136.92 183.4
2007 278.265352112676 19,756.84 71
2008 129.019941860465 22,191.43 172
2009 84.5119478638668 26,843.53 317.63

c)SOLVENCY RATIOS
1-D/E
YEAR D/E=DEBT/EQUITY DEBT EQUITY
2005 4.94825437534994 2,739.70 553.67
2006 4.54449401267903 2,516.15 553.67
2007 16.6106910982141 9,645.33 580.67
2008 24.660896576261 18,021.69 730.78
2009 36.8726720398473 26,946.18 730.79

2-INTEREST COVER
YEAR INT.COVER PBIT INT.EXPENSE
2005 26.5068618881119 6,064.77 228.8
2006 36.4331512704821 6,136.80 168.44
2007 28.9586865671642 7,275.87 251.25
2008 9.50555956212394 8,830.95 929.03
 2009 6.56563276267204 9,779.51 1,489.50

d)EFFICIENCY RATIOS

1-ASSET TURNOVER
YEAR ASSET TURNOVER SALES AVG.TOTAL ASSETS
2005 1.61920768356324 15,867.62 9,799.62
2006 1.39648696771775 17,136.92 12,271.45
2007 0.832165475783313 19,756.84 23,741.48
2008 0.489634710591359 22,191.43 45,322.42
2009 0.473842195994477 26,843.53 56,650.78

2-INVENTORY TURNOVER RATIO

YEAR ITR COGS AVG.INVENTORIES

2005 0.170903653065584 320 1,872.40
2006 0.178995286814576 389.27 2,174.75
2007 0.311129971109911 725.86 2,332.98
2008 0.374075808643444 974.46 2,604.98
2009 0.168856505012254 587.7 3,480.47
AVG. SHAREHOLDER'S EQUITY

AVG. NO. OF EQUITY SHARES(lakhs)

CURRENT LIABILITIES

CURRENT LIABILITIES total current assets inventory

2,700.90 1,872.40
3,002.50 2,174.75
3,411.12 2,332.98
3,613.46 2,604.98
4,580.03 3,480.47
AVG. DEBTORS

INT.EXPENSE
AVG.TOTAL ASSETS

AVG.INVENTORIES
FINANCIAL RATIOS
Ratio Analysis

Asset Turnover is very good In last four years the assets were utilized to the fullest but in the last year due to less demand, it r
Debt Equity Ratio

Tata Steel over the years has been increasing its debt in order to finance the Corus deal. They took a loan of $ 8 Billion from th
Current Ratio
The current ratio is a financial ratio that measures whether or not the firm has enough resources to pay its debts over the nex
Debtors Turnover Ratio
The stakeholders of the company like distributors and suppliers have a lot of confidence in the company. This shows the credi

EPS RATIO
EPS is the reported profit over the number of shareholders in the company. In the last 5 years EPS has doubled from 61 to 72 a
P/E RATIO
P/E RATIO IS expected to double in 2010 because of higher profitability and dividend payouts in the previous years.

Current Ratio

The current ratio is a financial ratio that measures whether or not the firm has enough resources to pay its debts over the nex

Debtors Turnover Ratio

The stakeholders of the company like distributors and suppliers have a lot of confidence in the company. This shows the credi

P/E RATIO

P/E RATIO IS expected to double in 2010 because of higher profitability and dividend payouts in the previous years.

Operating expenses are expected to increase marginally resulting in increase of EBITDA margin of 38.7%.But compared to prev

ROCE over the years has reduced because of slowdown as well as huge inventories of stock and new plants introduced in Jams
e last year due to less demand, it reduced by 1, but in overall terms it is optimally used all resources.

y took a loan of $ 8 Billion from the bank to acquire Corus.

urces to pay its debts over the next 12 months. It compares a firm’s current assets to its current liabilities. Tata Steel has a high amount of

he company. This shows the creditworthiness and brand value of the company. Since debtors are paying back in comparatively less numbe

rs EPS has doubled from 61 to 72 and it is expected to reach 74 in FY10.

s in the previous years.

urces to pay its debts over the next 12 months. It compares a firm’s current assets to its current liabilities. Tata Steel has a high amount of

he company. This shows the creditworthiness and brand value of the company. Since debtors are paying back in comparatively less numbe

s in the previous years.

gin of 38.7%.But compared to previous year the EBITDA/Turnover has reduced because the profits were higher than last years.

and new plants introduced in Jamshedpur.

ta Steel has a high amount of unutilized current assets. The company has high level of inventory or WIP. Since the demand for steel has re

k in comparatively less number of days shows faster movement of goods in the market.

ta Steel has a high amount of unutilized current assets. The company has high level of inventory or WIP. Since the demand for steel has re

k in comparatively less number of days shows faster movement of goods in the market.

her than last years.

e the demand for steel has reduced drastically the company is having huge inventory and because of this the liquid ratio is low.

e the demand for steel has reduced drastically the company is having huge inventory and because of this the liquid ratio is low.
e liquid ratio is low.

e liquid ratio is low.