4. In respect of other assets depreciation is provided on a straight line basis applying the rate specified in Schedule 14 to the Companies Act 1956 or based on estimated useful life whichever is higher. However, asset value up to Rs 25000 is fully depreciated in the year of acquisition. The details of estimated life of each category of assets are as under:
11. Development of property for development of mines and collieries are depreciated over the useful life of the mine or lease period whichever is less, subject to a maximum of 10 years.
12.
13.
14. The current ratio is a financial ratio that measures whether or not the firm has enough resources 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 unutilized current assets. The company has high level of inventory or WIP. Since the demand for steel has reduced drastically the company is having huge inventory and because of this the liquid ratio is low.
16. The stakeholders of the company like distributors and suppliers have a lot of confidence in the company. This shows the creditworthiness and brand value of the company. Since debtors are paying back in comparatively less number of days shows faster movement of goods in the market.
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18. P/E RATIO IS expected to double in 2010 because of higher profitability and dividend payouts in the previous years.