Investment

FINANCIAL ANALYSIS OF TATA STEEL

PREPARED BY:
VAIBHAV PATANKAR

AN OVERVIEW
‡ It was started in the year 1908. The company's steel-making and finishing facilities have the capacity to produce more than 30 million tons of crude steel. ‡ Backed by 100 glorious years of experience in steel making, Tata Steel is the world s 6th largest steel company ‡ Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries.

AREAS OF OPERATIONS
‡ The Company provides steel in different industries, which include construction, automotive, aerospace, consumer goods, materials handling, energy and power, rail, engineering, shipbuilding, packaging, and security and defense. ‡ Key Executives Ratan N Tata Chairman B Muthuraman Addi. Director & VC Nusli N Wadia Director S M Palia Director

DETAILS OF PROFIT AND LOSS A/C
‡ Net Sales 2009 2010 ‡ Total Income 2009 2010 ‡ Total Expenditure 2009 2010 Rs. in Crores 24,348.52 24,940.85 25,289.30 26,093.79 15,510.79 15,948.12

DETAILS OF PROFIT AND LOSS A/C
‡ Operating Profit 2009 2010 ‡ Gross Profit 2009 2010 ‡ Net profit 2009 2010 Rs. in Crores 9,778.51 10,145.67 8,289.01 8,297.48 4,981.50 4,421.95

DETAILS OF BALANCE SHEET
‡ Total Shareholders Fund 2009 2010 ‡ Total Debt 2009 2010 ‡ Total Liabilities 2009 2010 Rs. in Crores 30,176.26 36,961.80 26,946.18 25,239.20 57,122.44 62,201.00

DETAILS OF BALANCE SHEET
‡ Net Block 2009 2010 ‡ Total Current Assets 2009 2010 ‡ Total Current Liabilities 2009 2010 Rs. in Crores 10,994.54 12,162.44 10,739.75 12,246.69 9,990.41 10,163.58

DIVIDEND AND CAPITAL STRUCTURE
‡ Dividend Dividend Per Share 2009 8.0 2010 16 ‡ Capital Structure Year Authorized Issued Subscribed Called Paid Up Face Capital Up Value 2010 1750 888.13 887.41 887.21 10 Rs. In Crores

SHAREHOLDING
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Indian Promoters Banks Fin. Inst. and Insurance FII's Private Corporate Bodies NRI's/OCB's/Foreign Others Govt Others General public Total Holding in % 31 20.69 18.97 3.40 0.17 0.01 0.59 20.81 100

FINANCIAL RATIO ANALYSIS OF TATA STEEL
‡ Ratios 1) Current Ratio 2)Quick Ratio 3)Gross Profit Ratio 4)Operating Profit Margin 5) Net Profit Ratio 6) Fixed Asset turnover Ratio 7) Total asset Turnover Ratio 2009 0.94 0.57 33.69% 37.68% 21.09% 1.22% 0.43% Year 2010 1.1 0.76 31.36 % 35.70 % 19.96 % 1.12 % 0.40 %

FINANCIAL RATIO ANALYSIS OF TATA STEEL
‡ Ratios 8)Debtor Turnover Ratio 9)Debt Equity Ratio 10)Price Earning Ratio 11)Earnings Per Share 2009 41.29 1.34 2.97 66.80 Year 2010 46.58 0.68 9.36 56.37

CORUS DEAL - Financing
Details of Financing of Corus Deal
THE NET FUNDING REQUIREMENT OF CORUS WAS RS.56,150 CRORES(USD12.90 billion)  Tata Steel gave a loan to Tata Steel Asia Holdings (TSAH) of Rs. 11,750 crores.  TSAH raised bridge loans of Rs. 10,900 crores.  Tulip UK Holding raised a mezzanine loan of Rs. 2,600 crores.  Thus a total of Rs. 25,250 crores were infused into Tata Steel UK Limited by way of Equity.  Tata Steel UK Limited raised senior debts and mezzanine loans of 30,900 crores.The total of Rs. 56,150 crores was used to pay for the Corus Acquisition

CURRENT MARKET POSITION
‡ Market Capital is Rs. 47,311.73 Crores. ‡ Current share price is Rs. 533.15 ‡ Allotted of 150 lakh ordinary shares and 120 lakh warrants at a price of Rs. 594 per share/warrant to Tata Sons.

«.I am sure Tata Steel will continue to display the same vigour and the same sense of spirit as it has in the past, to face challenges, excel and lead by example in the years ahead.

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Investment 6.8 of 10 on the basis of 3350 Review.