Depreciation cost

1. Business Finance
Depreciation Cost in Steel Industry
Presented By:-
Dipanway Bhabuk

2.  During 2012, India maintained its ranking as the 4th largest steel
producing country in the world behind China, Japan and the US with a
crude steel production of 76.7 million tonnes (MT) representing a 4.3%
growth over 2011.
Steel Industry In India

3.  As per official estimates, the Iron and Steel Industry contributes around
3 per cent of the Gross Domestic Product (GDP). From a negligible
global presence, the Indian steel industry is now globally acknowledged
for its product quality.
 The table below shows the trend in production for sale, import, export
and real consumption of total finished steel (alloy + non-alloy) in the
country:
Gross Domestic Product
Data source page 19

4.  Depreciation is a non-cash expenses that reduces the value of an assets over
time.
 Methods of Depreciation:-
 Straight Line Method:- This method is used when the assets generates
revenue that are equal or very close to equal over its useful life.
Calculation:- Total Cost – Residual Value
Useful Life
 Diminishing Balance Method:- This method is used when the assets revenue
decreases over its useful life.
Calculation:- (Total Cost – Accumulated Depreciation) * Depreciation Rate
Depreciation

5. Why
Where
Depreciation
Purpose
Why, Where and Purpose of
Depreciation
Depreciation occurs due to
wear and tear, usage,
obsolescence through
technology.
Tangible & Intangible
Assets
Ascertainment of True Profit & Loss,
Cost Of Production,
Valuation of Assets,
Replacement of Assets

6. TATA STEEL 2014-13 2013-12 2012-11
Total revenue 42,498.67 39,101.47 34,819.89
Total Assets 24,064.43 24,650.54 11,142.36
Depreciation 1,780.00 1,568.80 1,095.83
Percentage of Depreciation on Total Assets 7.40 % 6.36 % 9.83 %
Percentage Increased in Total Revenue without
Depreciation
1.04 % 1.04 % 1.03 %
Depreciation of TATA STEEL
EXCEL WORK
(Rupees in Crores)

7. JSW STEEL 2014-13 2013-12 2012-11
Total revenue 42,498.67 35,491.81 32,122.66
Total Assets 37,225.12 27,604.47 27,071.63
Depreciation 2,725.88 1,973.89 1,708.17
Percentage of depreciation on Total Assets 7.32 % 7.15 % 6.31 %
Percentage Increased in Total Revenue without
Depreciation
1.06 % 1.06 % 1.05 %
Depreciation of JWS STEEL
EXCEL WORK
(Rupees in Crores)

8. VISA STEEL 2014-13 2013-12 2012-11
Total revenue 5,325.50 8,156.20 13,328.79
Total Assets 9,598.81 7,807.30 7,706.60
Depreciation 519.15 382.57 380.92
Percentage of depreciation on Total Assets 5.41 % 4.90 % 4.94 %
Percentage Increased in Total Revenue without
Depreciation
1.10 % 1.05 % 1.03 %
Depreciation of VISA STEEL
EXCEL WORK
(Rupees in Crores)

9. TATA STEEL JWS STEEL VISA STEEL
2013-14 7.4 7.32 5.41
2012-13 6.36 7.15 4.9
2011-12 9.83 6.31 4.94
0
2
4
6
8
10
12
PercentageofDepreciation

10.  Book:-
• Management Accounting & Financial Management- Ravi
Kishore
 Internet :-
 www.tatasteel.org
 www.jwssteel.org
 www.visasteel.org
 www.steelindia.goc.in
 www.wikipedia.org
Biblography