Cf group 9_project_m_18_17,18,25

1. Financial study of Corporate Sector : Tata Steels , ITC ,
Adani
A PROJECT REPORT
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR
THE DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION
SUBMITTED TO
DEPARTMENT OF MANAGEMENT STUDIES
RAJIV GANDHI INSTITUTE OF PETROLEUM TECHNOLOGY
JAIS, AMETHI ,UTTAR PRADESH
SUBMITTED BY SUPERVISED
BY
Pranjul Kr.Gupta( M-18-17) Dr.Girish Tripathi
PrashantTiwari (M-18-18)
Shyam Babu (M-18-25)

2. Introduction
Tata Steel Limited formerly Tata Iron and Steel Company Limited (TISCO) is an
Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India,
and a subsidiary of the Tata Group.
It is one of the top steel producing companies globally with annual crude steel deliveries of
27.5 million tonnes (in FY17), and the second largest steel company in India (measured by
domestic production) with an annual capacity of 13 million tonnes after SAIL.
Tata Steel has manufacturing operations in 26 countries, including Australia, China, India,
the Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500
people.[4] Its largest plant located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the
UK-based steel maker Corus. It was ranked 486th in the 2014 Fortune Global 500 ranking of
the world's biggest corporations.[6] It was the seventh most valuable Indian brand of 2013 as
per Brand Finance
Acquisitions
NatSteel in 2004: In August 2004, Tata Steel agreed to acquire the steel making operations of
the Singapore-based NatSteel for $486.4 million in cash. NatSteel had ended 2003 with
turnover of $1.4 billion and a profit before tax of $47 million.[16] The steel businesses of
NatSteel would be run by the company through a wholly owned subsidiary called Natsteel
Asia Pte Ltd. The acquisition was completed in February 2005. At the time of acquisition,
NatSteel had a capacity of about 2 million tonnes per annum of finished steel.
Millennium Steel in 2005: Tata Steel acquired a majority stake in the Thailand-based
steelmaker Millennium Steel for a total cost of $130 million. It paid US$73 million to Siam
Cement for a 40% stake and offered to pay 1.13 baht per share for another 25% of the shares
of other shareholders. For the year 2004, Millennium Steel had revenues of US$406 million
and a profit after tax of US$29 million.[19] At the time of acquisition, Millennium Steel was
the largest steel company in Thailand with a capacity of 1.7 million metric tonnes per annum,
producing long products for construction and engineering steel for auto
industries.[19] Millennium Steel has now been renamed to Tata Steel Thailand and is
headquartered in Bangkok. On 31 March 2013, it held approx. 68% shares in the acquired
company.
Corus in 2007: On 20 October 2006, Tata Steel signed a deal with Anglo-Dutch company,
Corus to buy 100% stake at £4.3 billion ($8.1 billion) at 455 pence per share. On 19
November 2006, the Brazilian steel company Companhia Siderúrgica Nacional (CSN)
launched a counter offer for Corus at 475 pence per share, valuing it at £4.5 billion. On 11
December 2006, Tata preemptively upped its offer to 500 pence per share, which was within
hours trumped by CSN's offer of 515 pence per share, valuing the deal at £4.9 billion. The
Corus board promptly recommended both the revised offers to its shareholders. On 31
January 2007, Tata Steel won their bid for Corus after offering 608 pence per share, valuing
Corus at £6.7 billion ($12 billion).

3. Shareholding
As on 31 March 2018, Tata Group held 31.64% shares in Tata Steel. Over 1 million
individual shareholders hold approx. 21% of its shares. Life Insurance Corporation of India is
the largest non-promoter shareholder in the company with 14.88% shareholding.
Shareholders Shareholding]
Promoters: Tata Group companies 31.64%
Insurance Companies 21.81%
Individual shareholders 22.03%
Foreign Institutional Investors 15.35%
GDRs 02.41%
Others 07.05%
Total 100.0%
The equity shares of Tata Steel are listed on the Bombay Stock Exchange, where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is
a constituent of the S&P CNX Nifty.
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange and the
Luxembourg Stock Exchange.
Issues
 Job cuts at Teesside in UK: In 2009, the subsidiary company Corus announced
mothballing of the blast furnace at Teesside. This would result in approx. 1,700 job cuts.
In 2003, Corus had informed that the production at Teesside Cast Products (TCP) was a
surplus to its needs. In December 2009, it informed about partial mothballing of the
plant. To help the workers, a Corus Response Group was formed which developed a
comprehensive package of support. This plan was in place over the past 10 months of
announcement. This plan included employment experts on site in January 2010 to put in
place support for affected workers, such as individual sessions with workers to update

4. CVs, highlight job opportunities and look at retraining options. The response group will
also be working closely with the Teesside Cast Products supply chain to offer similar
support. In February 2011, the TCP plant was bought by Thailand's Sahaviriya Steel
Industries from Corus for $469 million. The acquisition was expected to create more than
800 jobs on top of the existing workforce of 700 at the steel plant, which will be brought
back into full operation.
 Environment protection at Dhamra Port: The Dhamra Port, a joint
venture between Larsen & Toubro and Tata Steel near Dhamra river in Bhadrak district
of Odisha, has come in for criticism from groups such as Greenpeace, Wildlife Protection
Society of India and the Orissa Traditional Fishworkers' Union for environment
protection. The port is being built within five kilometres of the Bhitarkanika National
Park, a Ramsar wetland of international importance, home to an impressive diversity
of mangrove species, saltwater crocodiles and an array of avian species. The port will
also be approximately 15 km. from the turtle nesting of Gahirmatha Beach, and turtles are
also found immediately adjoining the port site. Aside from potential impacts on nesting
and feeding grounds of the turtles, the mudflats of the port site itself are breeding grounds
for horseshoe crabs as well as rare species of reptiles and amphibians. The port began
commercial production in May 2011. In response, the company website informs that it
has been working with International Union for Conservation of Nature (IUCN) for
guidance and assistance in the implementation of environmental standards and designing
mitigation measures for potential hazards during construction and operation of the Port.
Financials
1)Profit &Loss Account
An account in the books of an organization to which incomes and gains are credited and
expenses and losses debited, so as to show the net profit or loss over a given period.
Financial statement showing a company's net profit or loss in a given period.

5. 2)Key Financial Ratios
A financial ratio or accounting ratio is a relative magnitude of two selected numerical values
taken from an enterprise's financial statements. Often used in accounting, there are many
standard ratios used to try to evaluate the overall financial condition of a corporation or other
organization.
Profit & Loss account of Tata Steel
Mar 18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
INCOME
Revenue From Operations [Gross] 59,453.23 52,564.93 42,290.64 46,226.08 45,869.55 41,843.27 36,687.13 31,579.29 26,757.60 26,843.53 22,191.43
Less: Excise/Sevice Tax/Other Levies 902.55 5,267.94 4,475.95 4,792.26 4,598.31 4,117.81 3,072.25 2,505.79 1,816.95 2,495.21 2,537.02
Revenue From Operations [Net] 58,550.68 47,296.99 37,814.69 41,433.82 41,271.24 37,725.46 33,614.88 29,073.50 24,940.65 24,348.32 19,654.41
Other Operating Revenues 1,066.14 696.03 395.65 351.18 439.79 473.97 318.58 322.85 24,940.65 24,348.32 19,654.41
Total Operating Revenues 59,616.82 47,993.02 38,210.34 41,785.00 41,711.03 38,199.43 33,933.46 29,396.35 1,241.08 603.07 962.59
Other Income 763.66 414.46 3,890.70 582.78 787.64 902.04 886.43 528.36 26,181.73 24,951.39 20,617.00
Total Revenue 60,380.48 48,407.48 42,101.04 42,367.78 42,498.67 39,101.47 34,819.89 29,924.71
EXPENSES 9,570.81 9,432.32 6,655.35
Cost Of Materials Consumed 16,877.63 12,496.78 9,700.01 11,707.83 9,677.71 9,877.40 8,014.37 6,244.01 169.08 358.87 446.95
Purchase Of Stock-In Trade 647.21 881.18 991.54 688.32 352.63 453.34 209.52 180.2 2,419.89 2,127.48 1,654.96
Changes In Inventories Of FG,WIP And Stock-In Trade 545.36 -1,329.65 142.97 -745.17 -155.18 -404.6 -220.72 -173.65 134.97 -289.27 -38.73
Employee Benefit Expenses 4,828.85 4,605.13 4,324.90 4,601.92 3,673.08 3,608.52 3,047.26 2,837.46 2,361.48 2,305.81 1,815.95
Finance Costs 2,810.62 2,688.55 1,460.27 1,975.95 1,820.58 1,876.77 1,925.42 1,735.70 1,848.19 1,489.50 929.03
Depreciation And Amortisation Expenses 3,727.46 3,541.55 1,933.11 1,997.59 1,928.70 1,640.38 1,151.44 1,146.19 1,083.18 973.4 834.61
Other Expenses 21,275.47 19,681.15 16,438.06 16,109.99 16,375.81 14,414.66 11,824.49 9,024.82 1,378.83 1,236.67 1,101.57
Less: Amounts Transfer To Capital Accounts 336.66 217.52 598.89 586.69 1,029.92 876.13 478.23 198.78 18,966.43 17,634.78 13,399.69
Total Expenses 50,375.94 42,347.17 34,391.97 35,749.74 32,643.41 30,590.34 25,473.55 20,795.95 7,215.30 7,316.61 7,217.31
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax 10,004.54 6,060.31 7,709.07 6,618.04 9,855.26 8,511.13 9,346.34 9,128.76 7,215.30 7,316.61 7,217.31
Exceptional Items -3,366.29 -703.38 -1,582.55 1,890.85 -141.76 -674.53 511.01 648.09
Profit/Loss Before Tax 6,638.25 5,356.93 6,126.52 8,508.89 9,713.50 7,836.60 9,857.35 9,776.85 1,998.00 2,173.00 2,252.00
Tax Expenses-Continued Operations 169.5 -75.13 108.33
Current Tax 1,586.78 1,400.54 1,433.06 1,908.60 3,098.02 1,770.54 3,115.11 2,857.00 1 17 19.95
Less: MAT Credit Entitlement 0 0 152.17 117.21 0 399.84 0 0 2,168.50 2,114.87 2,380.28
Deferred Tax 881.92 511.84 -55.32 278.38 203.29 1,402.93 45.82 54.16 5,046.80 5,201.74 4,837.03
Total Tax Expenses 2,468.70 1,912.38 1,225.57 2,069.77 3,301.31 2,773.63 3,160.93 2,911.16 0 0 0
Profit/Loss After Tax And Before ExtraOrdinary Items 4,169.55 3,444.55 4,900.95 6,439.12 6,412.19 5,062.97 6,696.42 6,865.69 0 0 -150
Profit/Loss From Continuing Operations 4,169.55 3,444.55 4,900.95 6,439.12 6,412.19 5,062.97 6,696.42 6,865.69 5,046.80 5,201.74 4,687.03
Profit/Loss For The Period 4,169.55 3,444.55 4,900.95 6,439.12 6,412.19 5,062.97 6,696.42 6,865.69 5,046.80 5,201.74 4,687.03
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 38.57 31.74 48.67 64.49 64.21 50.28 67.84 75.63 56.87 71.18 64.14
Diluted EPS (Rs.) 38.56 31.74 48.67 64.49 64.21 50.28 66.62 70.99 56.87 71.18 64.14
VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS
Imported Raw Materials 0 0 7,194.82 8,163.97 6,539.93 7,035.83 6,116.87 4,672.63 3,941.88 4,266.89 1,940.58
Indigenous Raw Materials 0 0 5,477.23 5,704.96 5,682.45 5,143.43 3,984.42 2,992.52 2,661.59 1,930.16 1,901.29
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 0 0 661.94 817.19 1,589.20 830.52 497.36 492.92 521.94 419.02 364.08
Indigenous Stores And Spares 0 0 3,685.78 3,384.85 3,101.48 1,637.65 1,511.98 1,250.72 2,057.92 1,999.42 1,633.69
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 1,237.35 1,043.07 776.97 776.97 971.21 776.97 1,165.46 1,151.06 709.77 1,168.95 1,168.93
Tax On Dividend 95.71 55.65 149.3 153.02 66.19 128.73 181.57 156.71 45.88 109.45 22.19
Equity Dividend Rate (%) 100 100 80 80 100 80 120 120 122.8 214.1 202.43
80 160 160
------------------- in Rs. Cr. -------------------

6. A) Debt to Equity Ratio
The debt-to-equity (D/E) ratio is calculated by dividing a company’s total liabilities by its
shareholder equity. These numbers are available on the balance sheet of a company’s
financial statements.The ratio is used to evaluate a company's financial leverage. The D/E
ratio is an important metric used in corporate finance. It is a measure of the degree to
which a company is financing its operations through debt versus wholly owned funds.
More specifically, it reflects the ability of shareholder equity to cover all outstanding
debts in the event of a business downturn. The debt-to-equity ratio is a particular type of
gearing ratio.
Formula
D/E = total liabilities/total equity
Key Financial Ratios of Tata Steel
Mar 18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
Per Share Ratios
Basic EPS (Rs.) 38.57 31.74 48.67 64.49 64.21 50.28 67.84 75.63 56.87 71.18 64.14
Diluted EPS (Rs.) 38.56 31.74 48.67 64.49 64.21 50.28 66.62 70.99 56.87 71.18 64.14
Cash EPS (Rs.) 68.9 71.92 70.35 86.85 85.86 69.01 80.79 83.51 69.08 84.5 75.56
Book Value [ExclRevalReserve]/Share (Rs.) 536.72 511.21 725.51 686.26 629.48 568.35 541.7 489.31 418.85 331.59 298.7
Book Value [InclRevalReserve]/Share (Rs.) 536.72 511.21 725.51 686.26 629.48 568.35 541.7 489.31 418.85 331.59 298.7
Dividend / Share(Rs.) 10 10 8 8 10 8 12 12 8 16 16
Revenue from Operations/Share (Rs.) 520.16 494.06 393.35 430.15 429.39 393.24 349.32 306.4 281.05 333.18 268.95
PBDIT/Share (Rs.) 144.34 126.52 114.29 109.03 140.05 123.82 127.89 125.19 114.34 133.82 122.9
PBIT/Share (Rs.) 111.81 90.06 94.39 88.47 120.19 106.94 116.04 113.24 102.13 120.5 111.47
PBT/Share (Rs.) 57.92 55.15 63.07 87.59 99.99 80.67 101.47 101.9 81.31 100.12 98.76
Net Profit/Share (Rs.) 36.38 35.46 50.45 66.29 66.01 52.12 68.94 71.56 56.87 71.18 64.14
Profitability Ratios
PBDIT Margin (%) 27.74 25.6 29.05 25.34 32.61 31.48 36.61 40.85 40.68 40.16 45.69
PBIT Margin (%) 21.49 18.22 23.99 20.56 27.99 27.19 33.21 36.95 36.34 36.16 41.44
PBT Margin (%) 11.13 11.16 16.03 20.36 23.28 20.51 29.04 33.25 28.92 30.04 36.72
Net Profit Margin (%) 6.99 7.17 12.82 15.41 15.37 13.25 19.73 23.35 20.23 21.36 23.84
Return on Networth / Equity (%) 6.77 6.93 6.95 9.65 10.48 9.17 12.72 14.62 13.57 21.46 21.47
Return on Capital Employed (%) 12.87 9.89 8.97 6.5 6.95 5.92 8.44 8.97 7.83 8.99 9.94
Return on Assets (%) 3.33 3.09 3.97 5.56 5.77 4.96 6.96 7.66 6.78 7.58 8.5
Total Debt/Equity (X) 0.41 0.56 0.41 0.36 0.39 0.43 0.41 0.53 0.68 1.11 0.83
Asset Turnover Ratio (%) 47.64 43.05 31.01 36.12 37.56 37.49 35.27 32.82 33.51 35.51 35.68
Liquidity Ratios
Current Ratio (X) 1.35 0.87 0.68 0.71 0.61 0.7 0.76 1.38 1.23 0.96 4.64
Quick Ratio (X) 0.92 0.43 0.35 0.23 0.29 0.38 0.47 1.08 0.92 0.63 4.31
Inventory Turnover Ratio (X) 5.41 4.69 5.39 5.2 6.94 7.27 6.98 7.44 8.1 7 7.54
Dividend Payout Ratio (NP) (%) 29.67 30.28 15.85 12.06 15.14 15.34 17.4 16.76 14.06 22.47 24.93
Dividend Payout Ratio (CP) (%) 15.66 14.93 11.36 9.2 11.64 11.59 14.85 14.36 11.57 18.92 21.16
Earnings Retention Ratio (%) 70.33 69.72 84.15 87.94 84.86 84.66 82.6 83.24 85.94 77.53 75.07
Cash Earnings Retention Ratio (%) 84.34 85.07 88.64 90.8 88.36 88.41 85.15 85.64 88.43 81.08 78.84
Valuation Ratios
Enterprise Value (Cr.) 85,974.08 73,848.83 58,740.67 54,235.79 61,149.60 51,755.53 63,166.96 80,040.79 78,147.05 45,882.51 73,683.19
EV/Net Operating Revenue (X) 1.44 1.54 1.54 1.3 1.47 1.35 1.86 2.72 3.13 1.88 3.75
EV/EBITDA (X) 5.2 6.01 5.29 5.12 4.49 4.3 5.08 6.66 7.7 4.69 8.2
MarketCap/Net Operating Revenue (X) 1.1 0.98 0.81 0.74 0.92 0.79 1.35 2.03 2.25 0.62 2.58
Retention Ratios (%) 70.32 69.71 84.14 87.93 84.85 84.65 82.59 83.23 85.93 77.52 75.06
Price/BV (X) 1.06 0.94 0.44 0.46 0.63 0.55 0.87 1.27 1.51 0.62 2.32
Price/Net Operating Revenue 1.1 0.98 0.81 0.74 0.92 0.79 1.35 2.03 2.25 0.62 2.58
Earnings Yield 0.06 0.07 0.16 0.21 0.17 0.17 0.15 0.12 0.09 0.3 0.09
------------------- in Rs. Cr. -------------------

7. Analysis: From above graph and table ,we can conclude that in FY’18 it wasd 0.4 which
was decreased from FY’08 arround 0.8.
B) Book Value [ExclRevalReserve]/Share (Rs.)
Book value represents a company's assets minus its liabilities and sometimes is referred to
as stockholders' equity, owners' equity, shareholders' equity, or simply equity. The book
value per share formula is used to calculate the per share value of a company based on its
equity available to common shareholders.
Analysis: From above graph and table ,we can conclude that Book value per share has
increased from 298.7 to 536.72 from FY’08 to FY’18.
0
0.2
0.4
0.6
0.8
1
1.2
Series1
0
100
200
300
400
500
600
700
800
Series1

8. C) Earning per share
Earnings per share (EPS) is the portion of a company's profit allocated to each share of
common stock. Earnings per share serve as an indicator of a company's profitability. It is
common for a company to report EPS that is adjusted for extraordinary items and
potential share dilution.
Analysis: From above graph and table ,we can conclude that EPS has decreased from
64.14 to 38.57 from FY’08 to FY’18.
D) Dividend Payout Ratio (%)
The dividend payout ratio is the fraction of net income a firm pays to its stockholders in
dividends.
Formula
Dividend Payout Ratio = (Dividends - Preferred Stock Dividends)/Net Income
0
10
20
30
40
50
60
70
80
Series1
0
5
10
15
20
25
30
35
Series1

9. Analysis: From above graph and table ,we can conclude that divided payout ratio has been
increased from 24.93 to 29.67 from FY’08 to FY’18.
E) Dividend / Share(Rs.)
Dividend per share (DPS) is the sum of declared dividends issued by a company for every
ordinary share outstanding. The figure is calculated by dividing the total dividends paid
out by a business, including interim dividends, over a period of time by the number of
outstanding ordinary shares issued.
Formula
Dividend / Share = Annual Dividend / Purchase Price
Analysis: From above graph and table ,we can conclude that dividend per share decreased
from 16 to 10 from FY’08 to FY’18.
F) Net Profit Margin (%)
The net profit margin is equal to how much net income or profit is generated as a
percentage of revenue. Net profit margin is the ratio of net profits to revenues for a
company or business segment. Net profit margin is typically expressed as a percentage
but can also be represented in decimal form. The net profit margin illustrates how much
of each dollar in revenue collected by a company translates into profit.
Net income is also called the bottom line for a company or the net profit. Net profit
margin is also called net margin. The term net profits is equivalent to net income on the
income statement, and one can use the terms interchangeably.
Formula
Net Profit Margin = Net Profit / Revenue
0
2
4
6
8
10
12
14
16
18
Series1

10. Analysis From above graph and table ,we can conclude that net profit margin is decreased
from 6.99 to 23.84 from FY’08 to FY’18.
G) Net Profit/Share (Rs.)
is an important financial measure, which indicates the profitability of a company. It is
calculated by dividing the company's net income with its total number of outstanding
shares.
Analysis From above graph and table ,we can conclude Net profit share dcreased from 64.14
to 36.38 from FY’08 to FY’18.
0
5
10
15
20
25
30
Series1
0
10
20
30
40
50
60
70
80
Series1

11. H) Current Ratio (X)
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations, or those due within one year. It tells investors and analysts how a company
can maximize the current assets on its balance sheet to satisfy its current debt and other
payables.
Formula
Current ratio = Current Assets / Current Liabilities.
Analysis From above graph and table ,we can conclude current ratio decreased from 4.64 to
1.35 from FY’08 to FY’18.
I) Quick Ratio (X)
The quick ratio is an indicator of a company’s short-term liquidity position and measures
a company’s ability to meet its short-term obligations with its most liquid assets.
Since it indicates the company’s ability to instantly use its near-cash assets (that is, assets
that can be converted quickly to cash) to pay down its current liabilities, it is also called
as the acid test ratio. An acid test is a quick test designed to produce instant results hence,
the name.
Formula
Quick ratio = (Current assets - Inventory – Prepaid expense ) / Current liabilities.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Series1

12. Analysis From above graph and table ,we can conclude current ratio decreased from 4.31 to
0.92 to from FY’08 to FY’18.
J) Return on Assets
Return on assets (ROA) is an indicator of how profitable a company is relative to its total
assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company's
management is at using its assets to generate earnings. Return on assets is displayed as a
percentage.
Formula
R.O.A = Net Income / Total Assets
Analysis From above graph and table ,we can conclude current ratio decreased from 8.5 to
3.33 from FY’08 to FY’18.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Series1
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1
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9
Series1

13. 3) Capital structure
The capital structure is how a firm finances its overall operations and growth by using
different sources of funds. Debt comes in the form of bond issues or long-term notes payable,
while equity is classified as common stock, preferred stock or retained earnings. Short-term
debt such as working capital requirements is also considered to be part of the capital
structure.
BREAKING DOWN Capital Structure
Capital structure can be a mixture of a firm's long-term debt, short-term debt, common equity
and preferred equity. A company's proportion of short- and long-term debt is considered
when analyzing capital structure. When analysts refer to capital structure, they are most likely
referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a
company is. Usually, a company that is heavily financed by debt has a more aggressive
capital structure and therefore poses greater risk to investors. This risk, however, may be the
primary source of the firm's growth.
Debt vs. Equity
Debt is one of the two main ways companies can raise capital in the capital markets.
Companies like to issue debt because of the tax advantages. Interest payments are tax
deductible. Debt also allows a company or business to retain ownership, unlike equity.
Additionally, in times of low interest rates, debt is abundant and easy to access.
Equity is more expensive than debt, especially when interest rates are low. However, unlike
debt, equity does not need to be paid back if earnings decline. On the other hand, equity
represents a claim on the future earnings of the company as a part owner.
Debt-to-Equity Ratio as a Measure of Capital Structure
Both debt and equity can be found on the balance sheet. The assets listed on the balance sheet
are purchased with this debt and equity. Companies that use more debt than equity to finance
assets have a high leverage ratio and an aggressive capital structure. A company that pays for
assets with more equity than debt has a low leverage ratio and a conservative capital
structure. That said, a high leverage ratio and/or an aggressive capital structure can also lead
to higher growth rates, whereas a conservative capital structure can lead to lower growth
rates. It is the goal of company management to find the optimal mix of debt and equity, also
referred to as the optimal capital structure.
Analysts use the D/E ratio to compare capital structure. It is calculated by dividing debt by
equity. Savvy companies have learned to incorporate both debt and equity into their corporate
strategies. At times, however, companies may rely too heavily on external funding, and debt
in particular. Investors can monitor a firm's capital structure by tracking the D/E ratio and
comparing it against the company's peers.

14. 4) Cash Flow of Tata Steel
Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a
business. At the most fundamental level, a company’s ability to create value for shareholders
is determined by its ability to generate positive cash flows, or more specifically, maximize
long-term free cash flow.
Period Instrument Authorized CapitalIssued Capital - P A I D U P -
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
2017 2018 Equity Share 2100 1205.22 77634625 3 19.41
2016 2017 Equity Share 2100 972.13 971215439 10 971.22
2015 2016 Equity Share 2100 972.13 971215439 10 971.22
2014 2015 Equity Share 2100 972.13 971215439 10 971.22
2013 2014 Equity Share 2100 972.13 971215405 10 971.22
2012 2013 Equity Share 2100 972.13 971215229 10 971.22
2011 2012 Equity Share 2100 972.13 971214450 10 971.21
2010 2011 Equity Share 2100 960.13 959214450 10 959.21
2009 2010 Equity Share 1750 888.13 887214196 10 887.21
2008 2009 Equity Share 1750 731.37 730592471 10 730.59
2007 2008 Equity Share 1750 731.37 730584320 10 730.58
Capital Structure (Tata Steel)
Cash Flow of Tata Steel ------------------- in Rs. Cr. -------------------
Mar 18 Mar-17 Mar-16
12 mths 12 mths 12 mths
Net Profit/Loss Before Extraordinary Items And Tax 6,638.25 5,356.93 6,126.52
Net CashFlow From Operating Activities 11,791.45 11,166.64 7,567.68
Net Cash Used In Investing Activities ######## -3,956.40 -5,405.22
Net Cash Used From Financing Activities 4,165.58 -7,279.71 -1,631.04
Foreign Exchange Gains / Losses 0 0 -0.12
Net Inc/Dec In Cash And Cash Equivalents 3,683.68 -69.47 531.3
Cash And Cash Equivalents Begin of Year 905.21 974.68 421.93
Cash And Cash Equivalents End Of Year 4,588.89 905.21 953.23

15. 5) Shareholding belonging to the category : "Public and holding more than
1% of the Total No.of Shares"
6) Bonus History
The last bonus that Tata Steel had announced was in 2004 in the ratio of 1:2.The share has
been quoting ex-bonus from August 11, 2004.
No. No. Total Shares held Shares as % of Total No. of Shares
1 Non-Resident Indian (NRI) 66,32,205 0.56
2 Citibank N.A. New York, Nyadr Dept 0 1.09
3 Foreign National- DR 44,489 0
4 Life Insurance Corporation of India 10,83,88,660 9
5 Hdfc Trustee Company Limited 4,33,94,013 3.81
6 Reliance Capital Trustee Co Ltd 3,97,33,296 3.97
7 Trusts 1,39,04,950 1.17
8 Foreign Bodies - DR 3,23,635 0.03
9 Foreign Porfolio Investments - Individual 892 0
10 Aditya Birla Sun Life Trustee Private Limited 2,47,83,424 2.06
11 IEPF 32,58,266 0.27
12 HUF 53,96,135 0.54
13 Sbi - Mutual Funds 1,31,22,661 1.09
14 Foreign - National 1,428 0
15 ICICI Prudential Mutual Funds 1,12,60,258 1.04
16 Overseas corporate bodies 4,500 0
17 Clearing Members 55,89,253 0.55
18 LLP 19,69,565 0.2
19 Director or Director's Relatives 3,813 0
20 Bodies Corporate 1,67,39,233 1.48
Shareholding belonging to the category : "Public and holding more than 1% of the Total No.of Shares"
Announcement Date Bonus Ratio Record Date Ex-Bonus Date
07-06-2004 01:02 12-08-2004 11-08-2004
11-09-1987 02:05 - -
11-09-1981 02:05 - -
11-09-1967 02:05 - -
11-09-1959 01:05 - -
11-09-1954 01:01 - -
Bonus History (Tata Steel)

16. Conclusion
TATA steel has grown strongly in recent decades and is likely to continue to expand as the
domestic producers are increasing their capacity to meet anticipated demand. The company
has always been on the path to reach the goal of “best supplier to best customer” and deliver
profitable growth, which has led the company overcome the tough growth circumstance in
the euro-zone crisis. The Company has always placed great emphasis on understanding the
nuances of each circumstance and act efficiently and effectively to euro-zone crisis.
It provide constant dividend to their shareholders . In last few years current assets are
increased and simultaneously current liabilities are also increased which brings tradeoff in
company’s growth and is certainly going to hit the firm like Tata Steels .Net profit did not
increase as the increase in interest on debt though the sales has been increased .Customer
needs have always been the top priority and the continued focus on delivering the quality has
helped the company maintain its position as a product pioneer.
The Company demonstrated resilience by taking several proactive initiatives against all
situations across and has proved its capability to overcome the toughest situation that lies in
the path of its development. “Tata Steel believes in staying alert to future opportunities while
never letting go of its core values. This is the philosophy that has underpinned its growth over
the years and one that remains its key driving force.”-- -- TATA STEEL MANAGEMENT