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SUMMER TRAINING PROJECT REPORT
ON“WORKING CAPITAL MANAGEMENT AND RATIO ANALYSIS”
AT
TATA STEEL LTD
Jamshedpur
Sum!""ed !# Par"!a$ %u$%!$me#" %&r "he re'u!reme#" %&r "he a(ard &% p&s")*radua"eDe*ree &%
Master of Business Administration +,-.)+,-/
Sum!""ed 012
Md. Taj
M0A 3rd Semes"er
R&$$ N& 4 -.,5,+63,3,,,.,
Sum!""ed "&2
A7har1a 8!sh#u Gup" Suhar"! !#s"!"u"e &% Ma#a*eme#" 9C&mmer7e
Swami Vivekananda Subharti University:
Meerut
-
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DECA!AT"#$
Th!s !s "& 7er"!%1 "ha" summer pr&;e7" e#"!"$ed %&orkin' (a)ita*
mana'ement and !atio ana*ysis+ Sum!""ed "& A7har1a 8!sh#u
Gup" Suhar"! !#s"!"u"e &% Ma#a*eme#" 9 C&mmer7e< S8SU: Meeru"
=UP> !# "he par"!a$ %u$%!$me#" &% "he re'u!reme#" %&r "he a(ard &%
P&s" Gradua"e de*ree !# Ma#a*eme#" =?!#a#7e> &% M0A !# sess!
+,-6)+,-/ !s a# au"he#"!7 re7&rd &% m1 (&r@ 7arr!ed dur!#* "he
summer "ra!#!#* a" Ta"a S"ee$ %r&m ,th -u*y /01 to 02th Au'ust /01
I de7$are "ha" "he (&r@ has #&" ee# sum!""ed %&r "he a(ard &%
de*ree &r d!p$&ma a#1(here e$se
MdTa;
R&$$ N& 4 -.,5,+63,3,,,.,
+
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AC3$#&ED4EME$T
The %u#dame#"a$ 7hara7"er!s"!7 &% summer !#"er#sh!p pr&*ram $!es #&" ;us" !# "hesu77ess%u$ 7&mp$e"! &% a *!Be# pr&;e7" u" a$s& !# "he p&s!"!Be epa#s! &% "he pr&%ess!a$
us!#ess pers !#s!de a s"ude#"
I (&u$d $!@e "& e"e#d m1 *ra"!"ude "& Mr. Manoj 3umar 4u)ta =ead: %!#a#7e a#d
a77&u#"s> %&r *!B!#* me &pp&r"u#!"1 "& (&r@ !# su7h a# !mp&r"a#" sphere a#d shar!#* h!s
B!s! a#d eper!e#7e
I am "ha#@%u$ "& Mr . "mtia5Ahmed %&r h!s 7"!#u&us supp&r" a#d *u!da#7e
Mr.4autam 4hosh =Ta"a Ma#a*eme#" DeBe$&pme#" Ce#"re =TMDC> %&r pr&B!d!#* me "he
&pp&r"u#!"1 "& $ear# a#d 7&mp$e"e m1 summer !#"er#sh!p !# "h!s es"eemed &r*a#!a"!
I a$s& "a@e "he &pp&r"u#!"1 "& "ha#@s Mr. Shubhojit Bhatta(harya %&r h!s *u!da#7e
a#d Ba$ua$e !#pu"s !# "he deBe$&pme#" &% "he pr&;e7": a#d !#"er#s &% ma#a*!#* "he rea$ "!me
!ssues "ha" (e %a7ed !# "he 7&rp&ra"e (&r$d
Las" u" #&" "he $eas" I (&u$d $!@e "& e"e#d m1 "ha#@s "& a$$ "he emp$&1ees a" %!#a#7edepar"me#": m1 %am!$1 a#d %r!e#ds %&r "he!r 7&&pera"!: Ba$ua$e !#%&rma"! a#d %eeda7@
dur!#* m1 pr&;e7"
C#$TE$T
S. $o 6A!T"CUA!S 6A4E $#
3
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0. INTRODUCTION ,6
. C#M6A$7 6!#8"E ,5
.0 ISTORY O? TE ORGINAFATION -,
. PRODUCT AND SER8ICES -6
.2 SWOT ANALYSIS -5 "& -
2. RESEARC METODOLOGY -H "& +-
9. O0JECTI8E O? TE STUDY ++
1. COLLECTION O? DATA +3
,. DATA ANALYSIS AND INTERPREATATION +. "& 3.
:. !EV"E& #8 "TE!ATU!E
:.0 WORKING CAPITAL 35 "& .6
:. NET WORKING CAPITAL ./ "& .
:.2 ?INANCIAL RATIOS O? TATA STEEL .H "& 65
:.9 COMPARITI8E ANALYSIS O? TATA STEEL: SAIL:
JSW
6 "& /H
:.1 ?INANCIAL RATIOS O? TATA STEEL: SAIL: JSW 5, "& -,.
;. RECOMMENDATION -,6
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"$T!#DUCT"#$
D!%%ere#" us!#esses (!$$ haBe d!%%ere#" (&r@!#* 7ap!"a$ 7hara7"er!s"!7s There are 3 ma!#
aspe7"s "& "hese d!%%ere#7es2
a> &$d!#* !#Be#"&r1
> Ta@!#* "!me "& pa1 supp$!ers a#d &"her a77&u#"s pa1a$e
7> A$$&(!#* 7us"&mers =a77&u#"s pa1a$e> "!me "& pa1
a> ?&&d supermar@e"s a#d &"her re"a!$ers re7e!Be m&s" &% "he!r sa$es !# "he %&rm &% 7ash:
7red!" 7ard &r de!" 7ard &(eBer: "he1 (!$$ u1 7red!" %r&m supp$!ers The1 (!$$ "here%&re
haBe "he e#e%!" &% s!*#!%!7a#" 7ash h&$d!#*s (h!7h "he1 ma1 7h&se "& !#Bes"
> A (h&$esa$er supp$!es &"her 7&mpa#!es a#d !s $!@e$1 "& u1 a#d se$$ ma!#$1 7red!" The
%$&( &% 7ash (!$$ haBe "& e ma#a*ed 7are%u$$1 Su7h a 7&mpa#1 ma1 haBe "& re$1 sh&r")
"erm &rr&(!#*s a#d &Berdra%"s
7> Sma$$ 7&mpa#!es (!"h a $!m!"ed "rad!#* re7&rd ma1 %!#d !" d!%%!7u$" "& &"a!# "rade 7red!"
A" "he same "!me 7us"&mers (!$$ epe7" "& re7e!Be "he #&rma$ 7red!" per!&d "& se""$e a77&u#"s
W&r@!#* 7ap!"a$ !s "he 7ap!"a$ re'u!red %&r ma!#"e#a#7e &% da1)"&)da1 us!#ess &pera"!s
The prese#" da1 7&mpe"!"!Be mar@e" e#B!rme#" 7a$$s %&r a# e%%!7!e#" ma#a*eme#" &%
(&r@!#* 7ap!"a$ The reas %&r "h!s !s a""r!u"ed "& "he %a7" "ha" a# !#e%%e7"!Be (&r@!#* 7ap!"a$
ma#a*eme#" ma1 %&r7e "he %!rm "& s"&p !"s us!#ess &pera"!s: ma1 eBe# $ead "& a#@rup"71
6
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e#7e "he *&a$ &% (&r@!#* 7ap!"a$ ma#a*eme#" !s #&" ;us" 7er#ed (!"h "he ma#a*eme#" &%
7urre#" asse"s 9 7urre#" $!a!$!"!es u" a$s& !# ma!#"a!#!#* a sa"!s%a7"&r1 $eBe$ &% (&r@!#*
7ap!"a$ &$d!#* &% 7urre#" asse"s !# sus"a#"!a$ am&u#" s"re#*"he#s "he $!'u!d!"1 p&s!"! 9
redu7es "he r!s@!#ess u" $1 a" "he epe#se &% pr&%!"a!$!"1 There%&re a7h!eB!#* r!s@)re"ur#
"rade &%% !s s!*#!%!7a#" !# h&$d!#* &% 7urre#" asse"s Wh!$e 7ash &u"%$&(s are pred!7"a$e !" ru#s
7"rar1 !# 7ase &% 7ash !#%$&(s Sa$es pr&*ram &% a#1 us!#ess 7er# d&es #&" r!#* a7@
7ash !mmed!a"e$1 There !s a "!me $a* "ha" e!s"s e"(ee# sa$e &% *&&ds 9 sa$es rea$!a"!
The 7ap!"a$ re'u!reme#" dur!#* "h!s "!me $a* !s ma!#"a!#ed 1 (&r@!#* 7ap!"a$ !# "he %&rm &%
7urre#" asse"s The (h&$e pr&7ess &% "h!s 7Bers! !s ep$a!#ed 1 "he &pera"!#* 717$e
7ep"
Working capital management !#B&$Bes "he re$a"!sh!p e"(ee# a %!rms sh&r")"erm
asse"s a#d !"s sh&r")"erm $!a!$!"!es The *&a$ &% (&r@!#* 7ap!"a$ ma#a*eme#" !s "& e#sure "ha"
a %!rm !s a$e "& 7"!#ue !"s &pera"!s a#d "ha" !" has su%%!7!e#" a!$!"1 "& sa"!s%1 &"h
ma"ur!#* sh&r")"erm de" a#d up7&m!#* &pera"!a$ epe#ses The ma#a*eme#" &% (&r@!#*
7ap!"a$ !#B&$Bes ma#a*!#* !#Be#"&r!es: a77&u#"s re7e!Ba$e a#d pa1a$e: a#d 7ash
There are ma#1 ra"!&s "ha" 7a# e 7a$7u$a"ed %r&m "he %!#a#7!a$ s"a"eme#"s
per"a!#!#* "& a 7&mpa#1s per%&rma#7e: a7"!B!"1: %!#a#7!#* a#d $!'u!d!"1 S&me 7&mm ra"!&s
!#7$ude "he pr!7e)ear#!#*s ra"!&: de")e'u!"1 ra"!&: ear#!#*s per share: asse" "ur#&Ber a#d
(&r@!#* 7ap!"a$
C#M6A$7 6!#8"E
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The Ta"a Gr&up &% C&mpa#!es has a$(a1s e$!eBed s"r*$1 !# "he 7ep" &% 7&$$a&ra"!Be
*r&("h: a#d "h!s B!s! has see# !" emer*e as e &% I#d!as a#d "he (&r$ds m&s" respe7"ed
a#d su77ess%u$ us!#ess 7*$&mera"es The Ta"a Gr&up has "ra7ed a r&u"e &% *r&("h "ha"
spa#s "hr&u*h s! 7"!#e#"s a#d emra7es d!Berse 7u$"ures The "&"a$ reBe#ue &% Ta"a
7&mpa#!es: "a@e# "&*e"her: (as /5. !$$! USD =ar&u#d Rs3-H:63. 7r&re> !# +,,H)-,: (!"h
65 per 7e#" &% "h!s 7&m!#* %r&m us!#ess &u"s!de I#d!a I# "he %a7e &% "r1!#* e7&m!7
7ha$$e#*es !# re7e#" "!mes: "he Ta"a Gr&up has s"eered I#d!a !#
seBe# de%!#ed se7"&rs 4 Ma"er!a$s: E#*!#eer!#*: I#%&rma"! Te7h#&$&*1 a#d
C&mmu#!7a"!s: E#er*1: SerB!7es: Csumer Pr&du7"s a#d Chem!7a$s Ta"a S"ee$ (!"h !"s
a7'u!s!"! &% C&rus has se7ured a p$a7e am* "he "&p "e# s"ee$ ma#u%a7"urers !# "he (&r$d
a#d !" !s "he Ta"a Gr&up: Ta"a C&mmu#!7a"!s: Ta"a P&(er:
I#d!a# &"e$s: Ta"a G$&a$ 0eBera*es a#d Ta"a Chem!7a$s
Tata Motors !s I#d!a
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Tata Consu*tan(y Servi(es =TCS> !s a# !#"e*ra"ed s&%"(are s&$u"!s pr&B!der (!"h de$!Ber1
7e#"res !# m&re "ha# - 7&u#"r!es I" ra#@ed %!%"h &Bera$$: a#d "&pped "he $!s" %&r IT serB!7es: !#
0$&&mer* 0us!#ess(ee@s -+ "h a##ua$ Te7h -,,: a ra#@!#* &% "he (&r$ds es" per%&rm!#*
"e7h 7&mpa#!es
Tata 6ower has p!eered h1dr&)p&(er *e#era"! !# I#d!a a#d !s "he $ar*es" p&(er
*e#era"&r =pr&du7"! 7apa7!"1 &% +3,, MW> !# I#d!a !# "he pr!Ba"e se7"&r
"ndian =ote*s Com)any =Ta; &"e$s: res&r"s a#d pa$a7es> happe#s "& e "he $ead!#* 7ha!# &%
h&"e$s !# I#d!a a#d e &% "he $ar*es" h&sp!"a$!"1 *r&ups !# As!a I" has a prese#7e !# -+
7&u#"r!es !# 6 7"!#e#"s
Tata 4*oba* Bevera'es >former*y Tata Tea?@ (!"h !"s ma;&r a7'u!s!"!s $!@e Te"$e1 a#d
G&&d Ear"h !s a" prese#" "he se7d $ar*es" *$&a$ ra#ded "ea &pera"!
Whe# Jamshed;! Ta"a *aBe shape "& h!s B!s! &% #a"! u!$d!#* 1 %&rm!#* (ha" (as "&
e7&me "he Ta"a Gr&up !# -/: he had e#B!sa*ed I#d!a as a# !#depe#de#" s"re#*"h 4
p&$!"!7a$$1: e7&m!7a$$1 a#d s&7!a$$1 I# &rder "& e7&me a %&r7e "ha" "he (&r$d has "& re7@
(!"h: "he Ta"a Gr&up has a$(a1s Be#"ured !#"& pa"h rea@!#* "err!"&r1 a#d p!eered
deBe$&pme#"s !# !#dus"r!es &% #a"!a$ !mp&r"a#7e
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As a p&$!71: "he Ta"a Gr&up C&mpa#!es pr&m&"e a#d e#7&ura*e e7&m!7: s&7!a$ a#d
edu7a"!a$ deBe$&pme#" !# "he 7&mmu#!"1: re"ur#!#* (ea$"h "& "he s&7!e"1 "he1 serBe T(&)
"h!rds &% "he e'u!"1 &% Ta"a Ss !s he$d !# ph!$a#"hr&p!7 "rus"s "ha" "a@e 7are &% e#d&(me#"s
"&(ards !mpr&Beme#" pr&*rammes !# "hese spheres
Thr&u*h "he 1ears: "he Ta"a Gr&up has ee# am*s" "he m&s" pres"!*!&us 7&rp&ra"e prese#7es
!# "he (&r$d *&Ber#ed 1 !"s pr!#7!p$es &% us!#ess e"h!7s I"s %&ra1 !#"& !#"er#a"!a$ us!#ess
has ee# re7&*#!sed 1 Bar!&us &d!es a#d !#s"!"u"!s 0ra#d ?!#a#7e: a UK ased
7su$"a#71 %!rm a%"er a re7e#" Ba$ua"! &% "he Ta"a ra#d a" --++ !$$! has ra#@ed !"
/6"h am* "he (&r$ds "&p -,, ra#ds I# Business Week ma*a!#es $!s" &% "he +6 m&s"
!##&Ba"!Be 7&mpa#!es "he Ta"a #ame appears -3"h a#d The Repu"a"! I#s"!"u"e: USA has
eBa$ua"ed "he Ta"a Gr&up as "he --"h !# a *$&a$ s"ud1 &% "he m&s" repu"ed 7&mpa#!es
I# "he r&ad ahead: "he Ta"a Gr&up !s %&7us!#* !#"e*ra"! &% #e( "e7h#&$&*!es !# !"s
&pera"!s a#d rea@!#* #e( *r&u#ds !# pr&du7" deBe$&pme#" The E@a super7&mpu"er had
ee# ra#@ed "he (&r$d
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rea$!se !"s B!s! a#d &;e7"!Bes The 7ha$$e#*es &% "he %u"ure (!$$ $1 he$p "& e#ha#7e "he
Gr&up
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#!4A$"AT"#$
="ST#!7 #8 T=E #!4A$"AT"#$
JAMSEDJI NUSSERWANJI TATA (1839 19!"#
e (as a B!s!ar1 eh!#d Ta"a S"ee$ e rea$!ed "ha"
I#d!a 7arr!ed &u" "he e'ues" (!"h s7rupu$&us ea$ a#d d!s"!#7"! Thus :
eBe# "h&u*h !" (as Jamshed;! Ta"a (h& had e#B!s!ed "he mamm&"h pr&;e7"s: !" (as !# %a7"
D&ra;! Ta"a (h& a7"ua$$1 r&u*h" "he Be#"ures "& e!s"e#7e a#d %ru!"! e (as "he %!rs"7ha!rma# &% "he *!*a#"!7 Ta"a e#"erpr!ses
--
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I" (as !# -H,5 "ha" "he B!$$a*e &% Sa@7h! (as d!s7&Bered a" "he 7%$ue#7e &% "(& r!Bers:
Suar#are@ha a#d Khar@ha! a#d "he ra!$(a1s s"a"! &% Ka$!ma"! The Ta"a Ir a#d S"ee$
C&mpa#1 (as %$&a"ed
SIR D$RA%JI TATA (18&9 1933#
S!r D&ra;!Ta"a=-6H)-H33> 7arr!ed &u" "he e'ues" (!"h
s7rupu$&us ea$ a#d d!s"!#7"!
Thus : eBe# "h&u*h !" (as Jamshed;! Ta"a (h& had
e#B!s!ed "he mamm&"h pr&;e7"s: !" (as !# %a7" D&ra;!
Ta"a (h& a7"ua$$1 r&u*h" "he Be#"ures "& e!s"e#7e a#d
%ru!"! e (as "he %!rs" 7ha!rma# &% "he *!*a#"!7 Ta"a
e#"erpr!ses
%'ARAT RATNA JE'ANIR RATANJI DADA%'AI TATA (19!" 1993#
JRDTa"a has ee# e &% "he *rea"es" u!$ders a#d
persa$!"!es &% m&der# I#d!a !# "he "(e#"!e"h 7e#"ur1
e assumed Cha!rma#sh!p &% Ta"a S"ee$ a" "he 1&u#* a*e &% 3.:
u" h!s 7har!sma"!7: d!s7!p$!#ed a#d %&r(ard $&&@!#* $eadersh!p
&Ber "he #e" 6, 1ears $ed "he Ta"a Gr&up "& #e( he!*h" &%
a7h!eBeme#": epa#s! a#d m&der#!a"!
!s s"1$e &% ma#a*eme#" (as "& p!7@ "he es" pers %&r "he ;&
a" ha#d a#d $e" h!m haBe "he $a"!"ude "& 7arr1 &u" "he ;& e (as
#eBer !#"eres"ed %&r M!7r&) Ma#a*eme#" I" (as he (h& er&ed
!# Suma#" M&&$*a&@ar: "he e#*!#eer!#* *e#!us (h& su77ess%u$$1 s"eered &ur 7&mpa#1 %&r
ma#1 1ears e (as a B!s!ar1 (h&se "h!#@!#* (as %ar ahead &% h!s "!me: (h!7h he$ped Ta"a
Gr&up $au#7h!#* !"s &(# A!r$!#es: #&( @#&(# as A!r I#d!a e (as a(arded "he 7&u#"r1
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RATAN NA)A* TATA
!atan $ave* Tata was &r# De7emer +: -H35: !#
Sura" e !s "he prese#" Cha!rma# &% Ta"a Gr&up: I#d!a !# -H5-
a#d (as su77ess%u$ !# "ur#!#* Ne$7& ar&u#d
0a7@ed 1 -,, *$&r!&us 1ears &% eper!e#7e !# s"ee$ ma@!#* :Ta"a S"ee$ !s "he (&r$d Es"a$!shed !# -H,5: !" !s "he %!rs" !#"e*ra"ed s"ee$ p$a#" !#
As!a a#d !s #&( "he (&r$ds se7d m&s" *e&*raph!7a$$1 d!Bers!%!ed s"ee$ pr&du7er a#d a
?&r"u#e 6,, C&mpa#1
-3
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Ma#a*!#* a *$&a$ (&r@%&r7e a#d se""!#* *$&a$
e#7hmar@s !s pr!mar!$1 a&u" ma#a*!#* d!Bers!"1 I# a pr&7ess &%
!#7$us!Be *r&("h: eBer1 pers 7"r!u"es "& "he $uepr!#" &% "he
%u"ure a#d !s "ru$1 7&mm!""ed "& "he s"a"ed &;e7"!Bes A#d e &% "he
@e1 re'u!s!"es %&r su77ess%u$ d!Bers!"1 ma#a*eme#" !s a shared B!s!
The Ta"a S"ee$ Gr&up has a$(a1s e$!eBed "ha" mu"ua$ e#e%!" &%
7&u#"r!es: 7&rp&ra"!s a#d 7&mmu#!"!es !s "he m&s" e%%e7"!Be r&u"e
"& *r&("h Ta"a S"ee$ has #&" $!m!"ed !"s &pera"!s a#d us!#esses
(!"h!# I#d!a u" has u!$" a# !mp&s!#* prese#7e ar&u#d "he *$&e as (e$$ W!"h "he a7'u!s!"!
&% C&rus !# +,,5 $ead!#* "& 7&mme#7eme#" &% Ta"a S"ee$s Eur&pea# &pera"!s: "he C&mpa#1
"&da1: !s am* "he "&p "e# s"ee$ pr&du7ers !# "he (&r$d (!"h a# e!s"!#* a##ua$ 7rude s"ee$
pr&du7"! 7apa7!"1 &% ar&u#d 3, m!$$! "#es per a##um a#d emp$&1ee s"re#*"h &% a&Be
,:,,, a7r&ss %!Be 7"!#e#"s The Gr&up re7&rded a "ur#&Ber &% Rs-.5:3+H Cr&res =US
+:H/+ m!$$!> !# +,, ) +,,H The C&mpa#1 has a$(a1s had s!*#!%!7a#" !mpa7" "he
e7&m!7 deBe$&pme#" !# I#d!a a#d #&( see@s "& s"re#*"he# !"s p&s!"! &% pre)em!#e#7e !#
!#"er#a"!a$ d&ma!# 1 7"!#u!#* "& $ead 1 eamp$e &% resps!!$!"1 a#d "rus"
Ta"a S"ee$
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T$+ ,$M+ETIT$RS $- TATA STEE*
•J!#da$ S"ee$
• SAIL
• Essar s"ee$
S$ME $T'ER MAJ$R +*A.ER IN T'IS INDUSTR.
Sa( p!pes
U""am s"ee$ L"d
Ispa" !#dus"r1 L"d
Mu@a#d L"d
Mah!#dra U*!#e s"ee$ 7& L"d
Usha!spa" L"d
Ka$1a#! s"ee$ L"d
E$e7"r& s"ee$ 7as"!#* L"d
Sesa G&a L"d
6!#DUCT A$D SE!V"CES
Ta"a s"ee$ pr&du7"s #ame
Ta"a Sha@"ee GC shee"
Ta"a S"ee$!um
Ta"a TISCON
Ta"a p!pes
Ta"a AGRICO
Ta"a W!r
Ta"a 0ear!#*s
-6
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Sa$es a#d D!s"r!u"!
Appr&!ma"e$1 H- &% a$$ sa$ea$e s"ee$ %r&m TSL are "& "he I#d!a# mar@e"
The 7&mpa#1 has a s"r* sa$es a#d d!s"r!u"! 7ha##e$ as sh&(# e$&(
6*ayers TATA SA" -S& ESSA!
Year &%
Es"a$!shme#"-H,5 -H6. +,,3=-H.> -H56
Pr&du7"s
Cs"ru7"!
0ars
R&ds C&$d r&$$ed shee"sa#d 7&!$s
C&$d r&$$ed shee"sa#d 7&!$s
&" r&$$ed
shee"s a#d 7&!$s
P!pes &" r&$$ed shee"sa#d 7&!$s
&" r&$$ed shee"sa#d 7&!$s
C&$d r&$$ed
shee"s a#d 7&!$s
C&$d r&$$ed
shee"s a#d 7&!$s
Ga$Ba#!ed
shee"s a#d 7&!$s
Tata Motors !s I#d!a
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Tata Consu*tan(y Servi(es =TCS> !s a# !#"e*ra"ed s&%"(are s&$u"!s pr&B!der (!"h de$!Ber1
7e#"res !# m&re "ha# - 7&u#"r!es I" !s 7urre#"$1 ra#@ed a" #& -- !# "he *$&a$ mar@e" !#
"erms &% reBe#ue a#d asp!res "& e !# "he "&p -, 1 +,-,
Tata 6ower has p!eered h1dr&)p&(er *e#era"! !# I#d!a a#d !s "he $ar*es" p&(er
*e#era"&r =pr&du7"! 7apa7!"1 &% +3,, MW> !# I#d!a !# "he pr!Ba"e se7"&r
"ndian =ote*s Com)any =Ta; &"e$s: res&r"s a#d pa$a7es> happe#s "& e "he $ead!#* 7ha!# &%
h&"e$s !# I#d!a a#d e &% "he $ar*es" h&sp!"a$!"1 *r&ups !# As!a I" has a prese#7e !# -+
7&u#"r!es !# 6 7"!#e#"s
Tata Tea: (!"h !"s ma;&r a7'u!s!"!s $!@e Te"$e1 a#d G&&d Ear"h !s a" prese#" "he se7d
$ar*es" *$&a$ ra#ded "ea &pera"!
-5
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ST A$A7S"S
ST A$A7S"S
STRENT'/
S"r* ra#d #ame $!@e Ta"a S"ee$ 9 C&rus
I#d!a# &pera"! 7apa$e &% mee"!#* !"s &(# re'u!reme#"
S"r* supp$1 7ha!# %&r ra( ma"er!a$ $ead!#* sa$es 9 d!s"r!u"!
L&( 7&s": h!*h s@!$$ed $a&ur
WEA0NESS/
L&( R 9 D I#Bes"me#"
U#s7!e#"!%!7 m!#!#* me"h&d
Te7h#&$&*!7a$$1 a7@(ard
L&( pr&du7"!B!"1
$++URTUNIT./
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U#ep$&red rura$ mar@e"s
Gr&(!#* d&mes"!7 mar@e"
Gr&(!#* *$&a$ mar@e"
Car "rade
!*h !#Bes"me#" !# !#%ras"ru7"ure se7"&r
T'REATS/
Ma;&r p$a1er e#"er!#* I#d!a# mar@e"
Ch!#a se" "& e7&me a #e" ep&r"er
!*h du"!es a#d "aes %r&m "he *&Ber#me#"
E#B!rme#"a$ 7er#s 9 $a(s
G$&a$ s$&(d&(#
-H
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!ESEA!C=
MET=#D##47
!ESEA!C= MET=#D##47
The s"ud1 (!$$ e ased "he UANTATI8E a#d UALITATI8E appr&a7h &% "he (&r@!#*
7ap!"a$ ma#a*eme#" m&de$ a" TATA STEEL #eeds a "h&r&u*h s"ud1 W!"h "he he$p &% RATIO
ANALYSIS 9 TREND ANALYSIS "he resu$" &% "he 7"r&$ me7ha#!sm 7a# e summar!sed
(h!7h (!$$ he$p !# !de#"!%1!#* "he e%%e7"!Be#ess &% "he s1s"em u#der "he preB!e( The da"a %&r
"he 7&mpa#!es u#der a#a$1s!s has ee# "a@e# %r&m "he!r respe7"!Be (es!"es &% "he 7&mpa#!es
MICROSO?T ECEL has ee# used as a "&&$ %&r d!%%ere#" 7a$7u$a"! purp&ses a#d
deBe$&p!#* "he 7har"s
+,
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A 7&$$a&ra"!Be appr&a7h: 7r&ss)%er"!$!sa"! &% e""er pra7"!7es a#d "e7h#&$&*1 as&rp"!
"hr&u*h !#"e*ra"! &% pr&7esses haBe $ed "& measura$e resu$"s !# "he Ta"a S"ee$ Gr&up
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A #umer &% !#d!B!dua$ pr&;e7"s haBe ee# "a@e# up !# ea7h &% "he "hrus" areas a#d de%!#!"e
e#e%!"s haBe e#sued !# ma#1 s!*#!%!7a#" (a1s: s&me &% (h!7h !#7$ude2
•
ash !# 7&a$ (!"h&u" redu7"! !# 1!e$d
• C&mp$e"e e#e%!7!a"! &% !r &re
• Impr&B!#* $as" %ur#a7e pr&du7"!B!"1
• DeBe$&pme#" &% adBa#7ed 7&a"!#*s
• EB&$B!#* "he #e" *e#era"! h!*h s"re#*"h s"ee$s
• L&(er!#* ph&sph&rus !# s"ee$ ma@!#*
Resear7h a#d DeBe$&pme#" !s 7arr!ed &u" !# "he areas &% ra( ma"er!a$s: $as" %ur#a7e
pr&du7"!B!"1: s"ee$ ma@!#*: pr&du7" deBe$&pme#": pr&7ess !mpr&Beme#" e"7: @eep!#* "hese
&pera"!s !# read!#ess %&r a#1 7ha$$e#*e
$%JE,TI)ES $- T'E STUD.
TATA STEEL has ee# ma#a*!#* "he Bar!&us aspe7" &% (&r@!#* 7ap!"a$ "hr&u*h
7"!#u&us e%%&r"s &Ber a $* per!&d &% "!me
The prese#" s"ud1 !s "r1!#* "& !#Bes"!*a"e "he d!%%ere#" aspe7"s &% (&r@!#* 7ap!"a$
ma#a*eme#" a" TATA STEEL W&r@!#* 7ap!"a$ !s *e#era$$1 "he #e" d!%%ere#7e
++
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e"(ee# "he "&"a$ asse"s a#d "he $!a!$!"!es &% "he 7&mpa#1 S& a# a""emp" "&
u#ders"a#d as "& h&( "he 7&mpa#1 ma#a*es "he (&r@!#* 7ap!"a$ has ee# de
I# m1 pr&;e7" (&r@ (e are "r1!#* "& !de#"!%1 "he Bar!&us s1s"ema"!7 pr&7esses !#
ma#a*!#* "he (&r@!#* 7ap!"a$
The s"ud1 !s "r1!#* "& !de#"!%1 "he Bar!&us $!'u!d!"1: pr&%!"a!$!"1: s&$Be#71 a#d "he
"ur#&Ber p&s!"!s &% "he 7&mpa#1 as a "&&$ &% per%&rma#7e (h!7h (!$$ $ead us "&
!de#"!%1 "he %!#a#7!a$ s&u#d#ess &% "he 7&mpa#1
C#ECT"#$S #8 DATA
The da"a has ee# 7&$$e7"ed %r&m "he pr!mar1 a#d se7dar1 s&ur7es2
!> Pr!mar1 da"a=-> Depar"me#" B!s!") d!s7uss! (!"h "he 7er#ed pers a#d !#"erB!e(!#*
&%%!7ers !# a77&u#"s a#d %!#a#7e se7"&r=+> OserBa"! me"h&d
!!> Se7dar1 da"a
=-> A##ua$ rep&r"s=+> J&ur#a$s a#d ma*a!#es
+3
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>2? Study of fi*es and offi(e do(uments
=.> Wes!"es &% TATA STEEL a#d &"her s"ee$ 7&mpa#!es
DATA A$A7S"S
+.
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"$TE!6!ETAT"#$
DATA A$A7S"S A$D "$TE!6!ETAT"#$
The pr&;e7" rep&r" !s prepared 1 surBe1!#* a *&&d #umer &% emp$&1ees
%r&m Bar!&us depar"me#"s &% Ta"a s"ee$: J&da eas" Th&se depar"me#"s are as %&$$&(s
De)artments
- 8TC: J&da
+ E$e7"r!7a$ Depar"me#" A#d Wa"er Supp$1
3 Ge&$&*!7a$ Depar"me#"
. &sp!"a$
6 JCO Adm!#!s"ra"!
/ Se7ur!"1 Depar"me#"
5 C!B!$ Depar"me#"
+6
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TSRDS =Ta"a S"ee$ Rura$ DeBe$&pme#" SerB!7e>
H JEIM =J&da Eas" Ir M!#es>
-, J&da Eas" T!me O%%!7e
-- J&da Eas" Pr&7ess!#* P$a#"
-+ J&da Eas" E'u!pme#"
-3 Ch!e%: J&da
-. Khdd Ir M!#e
-6 JCO $a#d a#d Lease
-/ JCO Es"a"e 9 GR
-5 RIR Depar"me#"
0. Are you satisfied with the a((ommodation fa(i*ity@ )rovided by the (om)any
PERCENTAGE
SATISFIED
NOT SATISFIED
, are sa"!s%!ed !# "he %!rs" as!7 #eed &% a huma# A77&mm&da"! sh&u$d e s!"ua"ed !# a
*&&d e#B!rme#" a#d sh&u$d e !# a *&&d area (here e 7a# surB!Be eas!$1 There are s&
ma#1 !* 7er#s (h& d&es #&" pr&B!de a77&mm&da"! %a7!$!"1 "& "he!r emp$&1ees: u" TSL
pr&B!des a77&mm&da"! %a7!$!"1 "& "he!r emp$&1ees TSL has !"s &(# "&(#sh!p There
emp$&1ees has #& pr&$em %&r a77&mm&da"! !# TSL: J&da eas" Th!s !s "he %!rs" "he&r1 &%
+/
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m&"!Ba"! Theemp$&1ees &% TSL: J&da are sa"!s%!ed (!"h "he a77&mm&da"! %a7!$!"1
pr&B!ded 1 "he 7&mpa#1
. Are you satisfied with the hea*th (are fa(i*ity
PERCENTAGE
SATISFIED
NOT SATISFIED
/ are sa"!s%!ed !# "he hea$"h 7are !s e &% "he !mp&r"a#" %a7"&r $!%e TSL has !"s &(#
"&(#sh!p: s& "he 7&mpa#1 pr&B!des &sp!"a$ %&r "he emp$&1ees: (!"h a *&&d #umer &%
d&7"&rs %&r a$$ d!seases There are -- d&7"&rs a#d -. #urses aBa!$a$e a" J&da Eas" The
emp$&1ees are sa"!s%!ed %&r a 7er"a!# $!m!": "he1 has a 7&mp$a!# a$s& a#d "ha" !s: "he hea$"h 7are
%a7!$!"1 !s $1 %&r sma$$ a#d #&rma$ d!seases: !% "here !s a measure d!sease ar!se "he# "here !s
#& arra#*eme#"s %&r "ha" The1 haBe "& *& %&r &"her &sp!"a$s $!@e D!s"r!7" ead'uar"er
&sp!"a$: Kehar &r "& Ta"a &sp!"a$: Jamshedpur 0&"h "h&se h&sp!"a$s are #eares" "& J&da
u" "h&se has a $* d!s"a#7e
2.Are you fee*in' se(ure about your job
Th!s !s a#&"her %a7"&r &% m&"!Ba"!a$ "he&r1 5+ are %ee$!#* se7ure a&u" "he !#7reases "he
m&ra$e &% "he emp$&1ee TSL emp$&1ees are %ee$!#* se7ure a&u" "he!r ;&s The &%%!7ers &%
TSL are eper!e#7ed a#d perma#e#"
+5
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PERCENTAGE
SECURED
NOT SECURED
9.Are you satisfied with the edu(ationa* fa(i*ities avai*ab*e at -oda for your
(hi*dren
PERCENTAGE
SATISFIED
NOT SATISFIED
are sa"!s%!ed (!"h "he edu7a"! &% $!%e #&( a da1s EBer1 pare#"s (a#" "& se#d "he!r
7h!$dre# "& a s"a#dard s7h&&$ ra"her "ha# a# &rd!#ar1 s7h&&$ A$$ pare#"s (a#"s "ha" "he!r
7h!$dre# sh&u$d @#&( a$$ "he aspe7"s "ha" h&( "& 7&pe (!"h "he 7&mpe"!"!Be (&r$d TSL
pr&B!des s7h&&$!#* %a7!$!"1 %&r "he 7h!$dre# &% "he emp$&1ees: u" emp$&1ees &% TSL: J&da are
#&" sa"!s%!ed (!"h "he s7h&&$!#* %a7!$!"1 aBa!$a$e a" J&da The Bar!&us edu7a"!a$ !#s"!"u"!s
are: G&B" ME S7h&&$: Ta"a Pr!mar1 S7h&&$: J&da Eas" UP:ME S7h&&$: G!r$s !*h S7h&&$:
J&da !*h S7h&&$: !$$ T&p Pr!mar1 S7h&&$: Saras(a"! S!shu Ma#d!r: W&me#
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1.Does the (om)any )rovides you the standard safety a))*ian(es
PERCENTAGE
YES
NO
The %!rs" p&$!71 &% TSL !s sa%e"1: a#d (e 7&u$d see "he h&ard!#*s &% sa%e"1 pr!#7!p$e eBer1
(here a" TSL: J&da J&da !s "he m!#es d!B!s! &% TSL The 7&mpa#1
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PERCENTAGE
YES
NO
The 7&mpa#1 pr&B!des sa%e"1 app$!a#7es as (e$$ as ma!#"a!#s "he sa%e"1 s"a#dards a" "he (&r@
p$a7e %&r a$$ emp$&1ees I# "he 7&mpa#1 a" eBer1 (here (e 7&u$d %!#d sa%e"1 !#s"ru7"! %&r
emp$&1ees as (e$$ as %&r &u" s!de pe&p$e: a#d emp$&1ees a$(a1s su**es"s &u"s!de pe&p$e "&
%&$$&( "he sa%e"1 s"a#dards TSL pr&B!des p&s!"!a$ "ra!#!#*: !" mea#s: "he ;& "ra!#!#*
S"a#dard Opera"!#* Pr&7edure =SOP> %&r sa%e"1 purp&ses There !s a T&!7 De"e7"ed Ma7h!#e:
!% "he ma7h!#e *!Bes a p&s!"!Be !s&$a"!: "he# emp$&1ee sh&u$d e !mp$eme#"ed Las" u" #&"
"he $!s": sa%e"1 !s a ma# made %u#7"!
:.Are you satisfied with your team members at your work )*a(e
PERCENTAGE
SATISFIED
NOT SATISFIED
The "eam (&r@ ea**era"es "he m&ra$e &% "he emp$&1ees a#d "he1 pu"s he!r es" e%%&r" The
emp$&1ees &% TSL: J&da are Ber1 mu7h sa"!s%!ed (!"h "here "eam memers: a$$ "he emp$&1eesare 7&)&pera"!Be (!"h ea7h &"her A$$ "he emp$&1ees a" here shares "here !#%&rma"! re$a"!#*
3,
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"he!r (&r@: d!B!des "here (&r@ pr&per$1 The1 *!Bes respe7" "& ea7h &"her a#d "he1 ma@es %u#
(!"h ea7h &"her a$s& A$$ "he emp$&1ees are Ber1 mu7h 7&)&pera"!Be (!"h "he &u"s!de pe&p$e
a$s&
;.Are you satisfied with the trainin' and deve*o)ment )ro'rams whi(h are
)rovided by the (om)any
PERCENTAGE
SATISFIED
NOT SATISFIED
Tra!#!#* a#d deBe$&pme#" pr&*ram "h!s !s e &% "he %a7"&r (h!7h eBer1 emp$&1ee #eeds a"
"he Ber1 %!rs" "!me !# a# &r*a#!a"! a#d "h!s !s a 7"!#u&us pr&7ess The emp$&1ees &% TSL
are #&" %u$$1 #&" sa"!s%!ed (!"h "h!s %a7"&r There are +, emp$&1ees are sa"!s%!ed a#d , are
#&" The u#sa"!s%!ed emp$&1ees sa1s "ha": "h!s !s #&" a 7"!#u&us pr&7ess a" TSL: J&da S&me
&% "hem 7&mp$a!#s "ha" "he "ra!#!#* a#d deBe$&pme#" pr&*rams (h!7h are pr&B!ded 1 "he
7&mpa#1 are #&" e#&u*h %&r "hem
3-
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%!""ed: (e$$ %ur#!shed r&&ms (!"h *&&d
$!*h"!#* %a7!$!"1: "he 7&s" &% "he %&&ds !# "he 7a#"ee# are Ber1 $&(: su7h as:
Lu#7h =Be*>QRs3
Lu#7h =#)Be*:e**>QRs.
0rea@%as" &r eBe#!#* %&&d !"ems Q,., pa!se=sam&sha:ara:p!a!:e"7>
TeaQ,., pa!se
E"7
There !s #& 7har*es %&r a77&mm&da"!: e$e7"r!7!"1 a#d (a"er %&r emp$&1ees
TSL: J&da emp$&1ees are sa"!s%!ed (!"h "he (e$%are %a7!$!"!es
PERCENTAGE
SATISFIED
NOT SATISFIED
3+
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0/. Are you satisfied with your sa*ary )a(ka'e
PERCENTAGE
SATISFIED
NOT SATISFIED
Th!s !s "he 'ues"! (h!7h #& e (!$$ *!Be "rue a#s(er 0e7ause eBer1 pers (a#"s m&re
a#d m&re me1 "ha# heshe *e"s a#d "ha"
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PERCENTAGE
YES
NO
TSL 7&)&pera"es (!"h "here emp$&1ees !# a# emer*e#71 "!me A$$ "he emp$&1ees are Ber1
mu7h sa"!s%!ed (!"h "he emer*e#71 he$p!#* %a7!$!"1 The %a7!$!"!es are $!@e: !% e &% "he
emp$&1ees %am!$1 memer &r "he emp$&1ee !"se$% sudde#$1 su%%ers %r&m a measure d!sease:
7&mpa#1 he$ps "hem 1 pr&B!d!#* su%%!7!e#" me1
0. Do you 'et re(o'nition for your individua*F'rou) )erforman(e
PERCENTAGE
YES
NO
Near a&u" 6 TSL emp$&1ees &% "he surBe1 *e"s re7&*#!"! %&r "he!r !#d!B!dua$*r&up
per%&rma#7e The res" emp$&1ees d
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02. Are you asso(iated with any so(ia* a(tivity "f yes then@ what is that
PERCENTAGE
YES
NO
There are a $ess #umer &% emp$&1ees (h& are ass&7!a"ed (!"h a#1 s&7!a$ a7"!B!"1: #ear a&u"
3, &% emp$&1ees are ass&7!a"ed S&me are ass&7!a"ed (!"h "emp$e 7&mm!""ee: a#d &r*a#!es
%es"!Ba$s S&me are ass&7!a"ed (!"h "he 7&mmu#!"1 7e#"re a#d &r*a#!es &77as!a$ %es"!Ba$s
=#e( 1ear par"!es>: e"7
09. Are you maintainin' your fami*y (omfortab*y with the sa*ary you have
PERCENTAGE
YES
NO
A$$ "he emp$&1ees &% surBe1 sa!d 1es "h!s 'ues"!: e7ause 7&mpa#1 %u$%!$$s a$$ "he #eeds
&% emp$&1ees: s"ar"!#* %r&m (e$$ %a7!$!"a"e a77&mm&da"!: pr&B!des *r&7er1 !"ems "hr&u*h
store (!"h $ess pr!7e "ha# mar@e" , med!7!#es %r&m 7&mpa#1
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PERCENTAGE
OWN HOUSE
OWN CAR
OWN LAPTOP
Th!s 'ues"! re%$e7"s "he 'ua$!"1 &% $!%e &% "he emp$&1ees &% TSL: J&da A&Be H, &%
emp$&1ees has "he!r &(# h&use: &(# 7ar: &(# AC
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PERCENTAGE
SAVINGS
SPEND
A$$ "he emp$&1ees spe#" a&Be Rs6,,, a#d saBes a77&rd!#* "& "he!r 7apa7!"1 s"ar"!#* %r&m
Rs-,,, "& Rs-,:,,,
35
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"TE!ATU!E
!EV"E&
3
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!3"$4 CA6"TA MA$A4EME$T
&=AT "S !3"$4 CA6"TA
W&r@!#* 7ap!"a$ !s "he 7ash #eeded "& pa1 %&r "he da1 "& da1 &pera"! &% "he us!#ess
&orkin' (a)ita* !s a %!#a#7!a$ me"r!7 (h!7h represe#"s &pera"!#* $!'u!d!"1 aBa!$a$e "& a
us!#ess: &r*a#!a"! &r &"her e#"!"1: !#7$ud!#* *&Ber#me#"a$ e#"!"1 A$* (!"h %!ed asse"s
su7h as p$a#" a#d e'u!pme#": (&r@!#* 7ap!"a$ !s 7s!dered a par" &% &pera"!#* 7ap!"a$ Ne"
(&r@!#* 7ap!"a$ !s 7a$7u$a"ed as 7urre#" asse"s m!#us 7urre#" $!a!$!"!es I" !s a der!Ba"! &%
(&r@!#* 7ap!"a$ "ha" !s 7&mm$1 used !# Ba$ua"! "e7h#!'ues su7h as DC?s =D!s7&u#"ed
7ash %$&(s> I% 7urre#" asse"s are $ess "ha# 7urre#" $!a!$!"!es: a# e#"!"1 has a workin' (a)ita*
defi(ien(y: a$s& 7a$$ed a workin' (a)ita* defi(it
A 7&mpa#1 7a# e e#d&(ed (!"h asse"s a#d pr&%!"a!$!"1 u" sh&r" &% $!'u!d!"1 !% !"s
asse"s 7a##&" read!$1 e 7Ber"ed !#"& 7ash P&s!"!Be (&r@!#* 7ap!"a$ !s re'u!red "& e#sure
"ha" a %!rm !s a$e "& 7"!#ue !"s &pera"!s a#d "ha" !" has su%%!7!e#" %u#ds "& sa"!s%1 &"h
ma"ur!#* sh&r")"erm de" a#d up7&m!#* &pera"!a$ epe#ses The ma#a*eme#" &% (&r@!#*7ap!"a$ !#B&$Bes ma#a*!#* !#Be#"&r!es: a77&u#"s re7e!Ba$e a#d pa1a$e: a#d 7ash
W&r@!#* 7ap!"a$ ma#a*eme#" !s a Ber1 !mp&r"a#" 7&mpe#" &% 7&rp&ra"e %!#a#7e
e7ause !" d!re7"$1 a%%e7"s "he $!'u!d!"1 a#d pr&%!"a!$!"1 &% "he 7&mpa#1 I" !#B&$Bes "he
de7!s! &% "he am&u#" a#d 7&mp&s!"! &% 7urre#" asse"s a#d "he %!#a#7!#* &% "hese asse"s
E%%!7!e#" (&r@!#* 7ap!"a$ ma#a*eme#" !#B&$Bes p$a##!#* a#d 7"r&$$!#* 7urre#" asse"s a#d
7urre#" $!a!$!"!es !# a ma##er "ha" e$!m!#a"es "he r!s@ &% !#a!$!"1 "& mee" due sh&r" "erm
&$!*a"!s "he e ha#d a#d aB&!d e7ess!Be !#Bes"me#" !# "hese asse"s "he &"her ha#d
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%&orkin' (a)ita*+ mea#s "ha" par" &% "he "&"a$ asse"s &% "he us!#ess "ha" 7ha#*e
%r&m e %&rm "& a#&"her %&rm !# "he &rd!#ar1 7&urse &% us!#ess &pera"!s” A$s& @#&(# as
revo*vin' &r (ir(u*atin' (a)ita* &r shortterm finan(ia* mana'ement !" !s #&"h!#* u" "he
d!%%ere#7e e"(ee# 7urre#" asse"s a#d 7urre#" $!a!$!"!es The (&rd “(&r@!#* 7ap!"a$” !s made
&% "(& (&rds) W&r@!#* 9 Cap!"a$ The (&rd (&r@!#* mea#s da1 "& da1 &pera"! &% "he‟
us!#ess: (hereas "he (&rd 7ap!"a$ mea#s me"ar1 Ba$ue &% a$$ asse"s &% "he us!#ess‟
W&r@!#* 7ap!"a$ !s &% ma;&r !mp&r"a#7e "& !#"er#a$ a#d e"er#a$ a#a$1s!s e7ause &% !"s 7$&se
re$a"!sh!p (!"h "he 7urre#" da1)"&) da1 &pera"!s &% a us!#ess
EBer1 us!#ess #eeds %u#ds %&r "(& purp&ses
L* "erm %u#ds are re'u!red "& 7rea"e pr&du7"! %a7!$!"!es "hr&u*h pur7hase &% %!ed
asse"s su7h as p$a#"s: ma7h!#er!es: $a#ds: u!$d!#*: e"7
Sh&r" "erm %u#ds are re'u!red %&r "he pur7hase &% ra( ma"er!a$s: pa1me#" &% (a*es:
a#d &"her da1)"&)da1 epe#ses
W&r@!#* 7ap!"a$ ma#a*eme#" dea$s (!"h "he ma#a*eme#" &% "hese sh&r" "erm %u#ds
The 7s"!"ue#"s &% 7urre#" asse"s 9 7urre#" $!a!$!"!es !s as %&$$&(s)
,URRENT ASSETS ,URRENT *IA%I*ITIES
- IN8ENTORY - SUNDRY CREDITORS
a> RAW MATERIAL + TRADE AD8ANCES
>WORK)IN)PROGRESS 3 0ORROWINGS =sh&r" "erm>
7> ?INISED GOODS a> COMMERCIAL 0ANKS
d> OTERS > OTERS
+ TRADE CREDITORS . PRO8ISIONS
3 LOANS AND AD8ANCES
.CAS AND 0ANK 0ALANCE
W$R0IN ,A+ITA* ,$M+RISES $- T'E -$**$WIN/
0. Cash and (ash eGuiva*ents2 ) Th!s m&s" $!'u!d %&rm &% (&r@!#* 7ap!"a$ re'u!res
7s"a#" superB!s! A *&&d 7ash ud*e"!#* a#d %&re7as"!#* s1s"em pr&B!des a#s(ers
"& @e1 'ues"!s su7h as2
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Is "he 7ash $eBe$ ade'ua"e "& mee" 7urre#" epe#ses as "he1 7&me due
Wha" !s "he "!m!#* re$a"!sh!p e"(ee# 7ash !#%$&( a#d &u"%$&(
Whe# (&u$d 7ash #eed &77ur Whe# a#d h&( mu7h a#@ &rr&(!#* (!$$ e #eeded "& mee" a#1 7ash sh&r"%a$$s
Whe# (!$$ repa1me#" e epe7"ed a#d (!$$ "he 7ash %$&( 7&Ber !"
. A((ounts re(eivab*es2 ) Ma#1 us!#esses e"e#d 7red!" "& "he!r 7us"&mers
I% 1&u d&: !s "he am&u#" &% a77&u#"s re7e!Ba$e reasa$e re$a"!Be "& sa$es
&( rap!d$1 are re7e!Ba$es e!#* 7&$$e7"ed
Wh!7h 7us"&mers are s$&( "& pa1 a#d (ha" sh&u$d e de a&u" "hem
2. "nventory2 ) I#Be#"&r1 !s &%"e# as mu7h as 6, per7e#" &% a %!rms 7urre#" asse"s: s&
#a"ura$$1 !" re'u!res 7"!#ua$ s7ru"!#1
Is "he !#Be#"&r1 $eBe$ reasa$e 7&mpared (!"h sa$es a#d "he #a"ure &% 1&ur
us!#ess
Wha"s "he ra"e &% !#Be#"&r1 "ur#&Ber 7&mpared (!"h &"her 7&mpa#!es !# 1&ur "1pe
&% us!#ess
9. A((ounts )ayab*e2 ) ?!#a#7!#* 1 supp$!ers !s 7&mm !# sma$$ us!#ess !" !s e &% "he ma;&r s&ur7es &% %u#ds %&r e#"repre#eurs
Is "he am&u#" &% me1 &(ed supp$!ers reasa$e re$a"!Be "& (ha" 1&u pur7hase
Wha" !s 1&ur %!rms pa1me#" p&$!71 d&!#* "& e#ha#7e &r de"ra7" %r&m 1&ur 7red!"
ra"!#*
1. A((rued eH)enses and taHes )ayab*e2 ) These are &$!*a"!s &% 1&ur 7&mpa#1 a"
a#1 *!Be# "!me a#d represe#" a %u"ure &u"%$&( &% 7ash
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T=E!E A!E T D"88E!E$T C#$CE6TS #8 !3"$4
CA6"TAI
0. Ba*an(e sheet or Traditiona* (on(e)t ) I" sh&(s "he p&s!"! &% "he %!rm a" 7er"a!# p&!#" &%
"!me I" !s 7a$7u$a"ed !# "he as!s &% a$a#7e shee" prepared a" a spe7!%!7 da"e I# "h!s me"h&d
"here are "(& "1pes &% (&r@!#* 7ap!"a$2)
a? 4ross workin' (a)ita* ) I" re%ers "& "he %!rm
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Opera"!#* 717$e
Ra( ma"er!a$
W&r@)!#)pr&*ress
?!#!shed *&&ds
Sa$es
De"&rs a#d !$$s
re7!eBa$e
Cash
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The !#Bes"me#" !# (&r@!#* 7ap!"a$ !s !#%$ue#7ed 1 %&ur @e1 eBe#"s !# "he pr&du7"! 9 sa$es
717$e &% "he %!rm2
Pur7hase &% ra( ma"er!a$s
Pa1me#" &% ra( ma"er!a$s
Sa$e &% %!#!shed *&&ds
C&$$e7"! &% 7ash %&r sa$es
The %!rm e*!#s (!"h "he pur7hase &% ra( ma"er!a$s (h!7h are pa!d a%"er a de$a1 (h!7h
represe#"s "he %a((ounts )ayab*e )eriod+. The ra( ma"er!a$s are "he# 7Ber"ed !#"&
%!#!shed *&&ds (h!7h are "he# s&$d The "!me $a* e"(ee# "he pur7hase &% ra( ma"er!a$s a#d
"he sa$e &% %!#!shed *&&ds !s 7a$$ed "he %inventory )eriod+ The "!me $a* e"(ee# "he da"e &%
sa$es 9 "he da"e &% 7&$$e7"! &% re7e!Ba$es !s "he %a((ounts re(eivab*e )eriod+ The "!me$a* e"(ee# pur7hase &% ra( ma"er!a$s 9 "he 7&$$e7"! &% 7ash %&r sa$es !s re%erred "& as
%o)eratin' (y(*e.+ The "!me $a* e"(ee# pa1me#" %&r ra( ma"er!a$ pur7hases 9 "he
7&$$e7"! &% 7ash %&r sa$es !s re%erred "& as %(ash (y(*e+
IM+$RTAN,E $- W$R0IN ,A+ITA*
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The adBa#"a*es &% (&r@!#* 7ap!"a$ &r ade'ua"e (&r@!#* 7ap!"a$ ma1 e e#umera"ed as e$&(2
)
- Cash Dis(ountI
I% a pr&per 7ash a$a#7e !s ma!#"a!#ed: "he us!#ess 7a# aBa!$ "he adBa#"a*e &% 7ash
d!s7&u#" 1 pa1!#* 7ash %&r "he pur7hase &% ra( ma"er!a$s a#d mer7ha#d!se I" (!$$
resu$" !# redu7!#* "he 7&s" &% pr&du7"!
+ "t (reates a 8ee*in' of Se(urity and Confiden(eI
The pr&pr!e"&r &r &%%!7!a$s &r ma#a*eme#" &% a 7er# are 'u!"e 7are%ree: !% "he1 haBe
pr&per (&r@!#* 7ap!"a$ arra#*eme#"s e7ause "he1 #eed #&" (&rr1 %&r "he pa1me#" &%
us!#ess epe#d!"ure &r 7red!"&rs Ade'ua"e (&r@!#* 7ap!"a$ 7rea"es a se#se &%
se7ur!"1: 7%!de#7e a#d $&1a$"1: #&" $1 "hr&u*h&u" "he us!#ess !"se$%: u" a$s&
am* !"s 7us"&mers: 7red!"&rs a#d us!#ess ass&7!a"es
3 JMust for Maintainin' So*ven(y and Continuin' 6rodu(tionI
I# &rder "& ma!#"a!# "he s&$Be#71 &% "he us!#ess: !" !s u" esse#"!a$ "ha" "he su%%!7!e#"
am&u#" " &% %u#d !s aBa!$a$e "& ma@e a$$ "he pa1me#"s !# "!me as a#d (he# "he1 are
due W!"h&u" amp$e (&r@!#* 7ap!"a$: pr&du7"! (!$$ su%%er: par"!7u$ar$1 !# "he era &%
7u" "hr&a" 7&mpe"!"!: a#d a us!#ess 7a# #eBer %$&ur!sh !# "he ase#7e &% ade'ua"e
(&r@!#* 7ap!"a$
. Sound 4oodwi** and Debt Ca)a(ityI
I" !s 7&mm eper!e#7e &% a$$ prude#" us!#essme# "ha" pr&mp"#ess &% pa1me#" !#
us!#ess 7rea"es *&&d(!$$ a#d !#7reases "he de" &% "he 7apa7!"1 &% "he us!#ess A
%!rm 7a# ra!se %u#ds %r&m "he mar@e": pur7hase *&&ds 7red!" a#d &rr&( sh&r")"erm
%u#ds %r&m a#@: e"7 I% "he !#Bes"&r a#d &rr&(ers are 7%!de#" "ha" "he1 (!$$ *e"
"he!r due !#"eres" a#d pa1me#" &% pr!#7!pa$ !# "!me
6 Easy oans from the BanksI
A# ade'ua"e (&r@!#* 7ap!"a$ !e e7ess &% 7urre#" asse"s &Ber 7urre#" $!a!$!"!es he$ps
"he 7&mpa#1 "& &rr&( u#se7ured $&a#s %r&m "he a#@ e7ause "he e7ess pr&B!des a
*&&d se7ur!"1 "& "he u#se7ured $&a#s: 0a#@s %aB&ur !# *ra#"!#* seasa$ $&a#s: !%
us!#ess has a *&&d 7red!" s"a#d!#* a#d "rade repu"a"!
,. Distribution of DividendI
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I% 7&mpa#1 !s sh&r" &% (&r@!#* 7ap!"a$: !" 7a##&" d!s"r!u"e "he *&&d d!B!de#d "& !"s
shareh&$ders !# sp!"e &% su%%!7!e#" pr&%!"s Pr&%!"s are "& e re"a!#ed !# "he us!#ess "&
ma@e up "he de%!7!e#71 &% (&r@!#* 7ap!"a$ O# "he &"her 7"rar1: !% (&r@!#* 7ap!"a$ !s
su%%!7!e#": amp$e d!B!de#d 7a# e de7$ared a#d d!s"r!u"ed I" !#7reases "he mar@e"
Ba$ue &% shares
5 EH)*oitation of 4ood #))ortunityI
I# 7ase &% ade'ua71 &% 7ap!"a$ !# a 7er#: *&&d &pp&r"u#!"!es 7a# e ep$&!"ed e*:
7&mpa#1 ma1 ma@e &%%)seas pur7hases resu$"!#* !# sus"a#"!a$ saB!#*s &r !" 7a#
%e"7h !* supp$1 &rders resu$"!#* !# *&&d pr&%!"s
Meetin' Unseen Contin'en(yI
Depress! sh&&"s "he dema#d &% (&r@!#* 7ap!"a$ e7ause s&7@ p!$!#* &% %!#!shed
*&&ds e7&me #e7essar1 Cer"a!# &"her u#see# 7"!#*e#7!es e*: %!#a#7!a$ 7r!s!s due
"& heaB1 $&sses: us!#ess &s7!$$a"!s: e"7 7a# eas!$1 e &Ber7&me: !% 7&mpa#1
ma!#"a!#s ade'ua"e (&r@!#* 7ap!"a$
H =i'h Mora*eI
The pr&B!s! &% ade'ua"e (&r@!#* 7ap!"a$ !mpr&Bes "he m&ra$e &% "he ee7u"!Be
e7ause "he1 haBe a# e#B!rme#" &% 7er"a!#"1: se7ur!"1 a#d 7%!de#7e: (h!7h !s a
*rea" ps17h&$&*!7a$: %a7"&r !# !mpr&B!#* "he &Bera$$ e%%!7!e#71 &% "he us!#ess a#d &%
"he pers (h& !s a" "he he$$ &% %a!rs !# "he 7&mpa#1
-, "n(reased 6rodu(tion Effi(ien(yI
A 7"!#u&us supp$1 &% ra( ma"er!a$: resear7h pr&*ramme: !##&Ba"!s a#d "e7h#!7a$
deBe$&pme#" a#d epa#s! pr&*rammes 7a# su77ess%u$$1 e 7arr!ed &u" !% ade'ua"e
(&r@!#* 7ap!"a$ !s ma!#"a!#ed !# "he us!#ess I" (!$$ !#7rease "he pr&du7"!
e%%!7!e#71: (h!7h (!$$: !# "ur# !#7reases "he e%%!7!e#71 a#d m&ra$e &% "he emp$&1ees
a#d $&(er 7&s"s a#d 7rea"e !ma*e am* "he 7&mmu#!"1
D"SADVA$TA4ES #8 EKCESS"VE !3"$4 CA6"TA
E B e r 1 u s ! # e s s 7 & # 7 e r # s h & u $ d h a B e a d e ' u a " e ( & r @ ! # * 7 a p ! " a $ " & r u # ! " s
us!#ess &pera"!s I" sh&u$d haBe #e!"her redu#da#" &r e7ess!Be (&r@!#* 7ap!"a$
#&r !#ade'ua"e #&r sh&r"a*e &% (&r@!#* 7ap!"a$ 0&"h e7ess!Be as (e$$ as sh&r"(&r@!#* 7ap!"a$ p&s!"!s are ad %&r a#1 us!#ess
./
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- E7ess!Be (&r@!#* 7ap!"a$ mea#s !d$e %u#ds (h!7h ear# #& pr&%!"s %&r "he us!#ess a#d
he#7e "he us!#ess 7a##&" ear# a pr&per ra"e &% re"ur# !"s !#Bes"me#"s
+ Whe# "here !s redu#da#" (&r@!#* 7ap!"a$: !" ma1 $ead "& u##e7essar1 pur7has!#* a#d
a77umu$a"! &% !#Be#"&r!es 7aus!#* m&re 7ha#7es &% "he%" (as"e a#d $&sses
3 E7ess!Be (&r@!#* 7ap!"a$ !mp$!es e7ess!Be de"&rs a#d de%e7"!Be 7red!" P&$!71 (h!7h ma1
7ause h!*her !#7!de#7e &% ad de"s
. I" ma1 resu$" !#"& &Bera$$ !#e%%!7!e#71 !# "he &r*a#!a"!
6 Whe# "here !s a# e7ess!Be (&r@!#* 7ap!"a$ re$a"! (!"h "he a#@s a#d &"her %!#a#7!a$
!#s"!"u"!s ma1 #&" e ma!#"a!#ed
/ Due "& $&( ra"e &% re"ur# !#Bes"me#"s "he Ba$ue &% shares ma1 a$s& %a$$
D"SADVA$TA4ES #8 "$ADELUATE !3"$4 CA6"TA
-> A 7er#: (h!7h has !#ade'ua"e (&r@!#* 7ap!"a$: 7a##&" pa1 !"s sh&r")"erm
$!a!$!"!es !# "!me Thus !" (!$$ $&&se !"s repu"a"! a#d sha$$ #&" e a$e "& *e" *&&d 7red!"
%a7!$!"!es
+ > T h e % ! rm 7 a ## & " p a 1 d a 1) " & )d a 1 e p e# s es & % ! " s & p e ra " !& # s a # d ! "
7 r e a " e s !#e%%!7!e#7!es: !#7reases 7&s"s a#d redu7es "he pr&%!"s &% "he us!#ess
3 > I " e 7 & m e s ! m p & s s ! $ e " & u " ! $ ! e e % % ! 7 ! e # " $ 1 " h e % ! e d a s s e " s
d u e " & # & # ) aBa!$a!$!"1 &% $!'u!d %u#ds
. > T h e r a " e & % r e " u r # & # !# B es " me # " s a $ s & % a $ $ s ( ! " h "h e
sh&r"a*e &% (&r@!#* 7ap!"a$
.5
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NET W$R0IN ,A+ITA*
CURRENT ASSETS // /.56H6 /,//+ -,,35. -,356+H -,5/6+
CURRENT
LIA0ILITIES
+,,H)-, +,-3)+,-. +,--)+,-+ +,-+)+,-3 +,-3)+,-.
SUNDRY
CREDITORS
3-.6HH 3+.3.+ 3.+5 .,//6 .5+-,5
SU0SIDIARY
COMPANIES
-,+/- --65. -36-+ -6-.3, -5--,5
INTEREST ACCRUED
0UT NOT DUE
.5-- +3-,6 6,// /5/// /5H3-
AD8ANCE
RECEI8ED ?ROM
TE CUSTOMER
-H+ ++/,3 +H535 33.HH +H3.
UNCLAIMED
MATURED
DEPOSITS=DUE>
,,, ,,+ ,,- ,,, ,,,
INTEREST ACCRUED ,,3 ,, ,,5 ,,, ,,,
.
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ON UNPAID
DI8IDENDS AND
UNCLAIMED
MATURED
DI8IDENDS=DUE>UNPAID DI8IDENDS +335 +H33 33, 3H.. .-+/
APPLICATION
MONEY PENDING
RE?UND
,,- 6/6 ,+. ,-. ,/-
UNPAID MATURED
DI8IDENDS
,,, ,,, ,,, ,53 ,6.
UNPAID MATURED
DEPOSITS
+6H -53 -,3 ,,, ,,,
UNPAID MATURED
DE0ENTURES
-5/ -5H ,-. ,,, ,,,
INTEREST ACCRUED
ON UNPAID
DI8IDENDS AND
MATURED
DI8IDENDS
-.6 ,.+ ,3. ,- ,-3
PRO8ISION ?OR
RETIRING
GRATUITIES
.H3- ,,, ,,, ,,, ,,,
PRO8ISION ?OR
EMPLOYEE0ENE?ITS
.5,-H .6. --.3, --+56, -/,-56
PRO8ISION ?OR
TAATION
../ 6.5. .H36H 6,5-3 5H-+H
PRO8ISION ?OR
?RINGE 0ENE?ITS
-35 -H-+ -H-+ +-+ 3
PROPOSED
DI8IDEND
H.3H- -+5., -+5., 5,H55 --6-,/
TOTAL=0> 6.63// /5/5 H5.,6 HHH/- -,HH6-
NET WORKING
CAPITAL
-,+++H =5,+6> -,/3.3 -356/ 5,,5-
.H
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+ER,ENTAE ,'ANE IN NET W$R0IN ,A+ITA*
CU!!E$T ASSETS //
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6!#V"S"#$ 8#!
EM6#7EE
BE$E8"TS
,,, /33. 3.5- ,,-. .+,/
6!#V"S"#$ 8#!
TAKAT"#$
5H.. H,6, ).++6 +5. 6/,3
6!#V"S"#$ 8#!
8!"$4E BE$E8"TS
/56-- ., ,,, )H- 3,-
6!#6#SED
D"V"DE$D
3--H +/-H 533 )... /+-5
T#TA>B? /H6H5 /3,. -+3+,- )6,/- +/.H/
6E!CE$TA4E
C=A$4E #8 $ET
!3"$4
CA6"TA
>AB?
)/5-5/+ )/.5+/ )./6+ H36H )+.+
8"$A$C"A !AT"#S
0. W$R0IN ,A+ITA* TURN$)ER RATI$
I" !s a ra"!& "ha" re%$e7"s "he am&u#" &% (&r@!#* 7ap!"a$ #eeded "& ma!#"a!# a
*!Be# $eBe$ &% sa$es A h!*h ra"!& !#d!7a"es "he %!rm !s !# a *&&d $!'u!d!"1
p&s!"! a#d B!7e)Bersa
?ORMULA Q NET SALES NET WORKING CAPITAL
PARTICULARS +,,H)-, +,-3)+,-. +,--)+,-+ +,-+)+,-3 +,-3)+,-.
NET SALES -566-,H -H/H3+ +.3-655 +6,+-H +H3H/36
NET WORKING
CAPITAL
-,+++H =5,+6> -,/3.3 -356/ 5,,5-
WORKING
CAPITAL
TUNRNO8ER
RATIO
-5-5 )+,3 ++5 --H .-6
6-
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2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
-40
-20
0
20
40
17.17
-28.03
22.87 18.19
4.15
working capital turnover ratio
INTERPRETATION2
The #e" (&r@!#* 7ap!"a$ &% TATA STEEL L"d has ee# %$u7"ua"!#* &Ber "he 1ears A sharp
de7rease !# "he (&r@!#* 7ap!"a$ !# "he 1ear +,-3)+,-.: (here "he (&r@!#* 7ap!"a$ (as
#e*a"!Be (as ma!#$1 e7ause &% a de7rease !# 7urre#" asse"s
As 7&mpared "& "he 1ear +,-+)+,-3 (here "he (&r@!#* 7ap!"a$ ra"!& (as --H: "he ra"!& "h!s
1ear has %a$$e# d&(# "& .-6 The reas %&r de7rease 7a# e a77red!"ed "& "he !#7rease !# "he
7urre#" asse"s su7h as !#Be#"&r1: 7ash 9 a#@ a$a#7es a#d $&a#s a#d adBa#7es "ha" has
!#7reased "reme#d&us$1 "h!s 1ear There has ee# a# !#7rease !# "he sa$es a#d "he pr&du7"!
7apa7!"1 "h!s 1ear The ra( ma"er!a$s 7sump"! has a$s& !#7reased 1 -3/.
2 ,URRENT RATI$
The 7urre#" ra"!& !s used "& eBa$ua"e a 7&mpa#1
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2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
0
0.2
0.4
0.
0.8
1
1.2
1.4
1.1.8
1.19
0.9
1.12 1.15
1.4
current ratio
!"##$%& #'&()
INTERPRETATION2
The !dea$ 7urre#" ra"!& !s 7s!dered "& e +2- The 7urre#" ra"!& has ee# !#7reas!#* s"ead!$1
&Ber "he 1ears As 7&mpared "& "he preB!&us 1ear !# +,-+)+,-3 "he ra"!& has !#7reased "& -/.
!# "he 1ear +,-3)+,-. The reas %&r !#7rease m!*h" e 7"!#u&us !#Bes"me#"s !# "he
7urre#" asse"s &Ber "he 1ears
3 4UI,0 RATI$
u!7@ ra"!& L!'u!d ra"!& !s a# !#d!7a"&r &% a 7&mpa#1
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IN8ENTORY
CURRENT
LIA0ILTY
6.63// /5/5 H65,6 HHH/- -,HH6-
UICK RATIO ,6 ,6H ,, , -3.
2 0 0 9 - 2 0
1 0
2 0 1 0 - 2 0
1 1
2 0 1 1 - 2 0 1
2
2 0 1 2 - 2 0 1
3
2 0 1
3 - 2 0
1 4
00.20.40.0.8
11.21.41.
0.85
0.590.8 0.88
1.34
QUICK RATIO
*UIC+ RATIO
INTERPRETATION2
The !dea$ s"a#dard !# 7ase &% 'u!7@ ra"!& !s -2- A#d !% !" !s m&re !" !s 7s!dered "& e e""er
The !dea eh!#d "h!s !s "ha" %&r eBer1 rupee &% 7urre#" $!a!$!"!es: "here sh&u$d e a" $eas" erupee &% $!'u!d asse"
u!7@ ra"!& !s "hus a r!*&r&us "es" &% $!'u!d!"1 a#d *!Bes a e""er p!7"ure &% sh&r" "erm
%!#a#7!a$ p&s!"! &% "he %!rm As sh&(# !# "he *raph a&Be: (e 7a# see "ha" a%"er a s"eep %a$$
!# "he 'u!7@ ra"!& %r&m "he 1ear +,,H)-, "& +,-3)+,-. "here has ee# a s"ead1 !#7rease !# "he
'u!7@ ra"!& a#d %&r "he 1ear +,-3)+,-. "he ra"!& !s -3. (h!7h s!*#!%!es "ha" "he $!'u!d!"1
p&s!"! &% "he %!rm has !mpr&Bed a#d "h!s !s e7ause &% !#7rease !# "he 7ash "ha" !s $1!#* (!"h
"he %!rm
" DE%T$RS TURN$)ER RATI$
De"&rs Tur#&Ber Ra"!& &r Re7e!Ba$es Tur#&Ber Ra"!& !#d!7a"es "he
re$a"!sh!p e"(ee# #e" sa$es a#d aBera*e de"&rs I" sh&(s "he ra"e a" (h!7h 7ash !s
*e#era"ed 1 "he "ur#&Ber &% de"&rs
?ORMULA Q A8ERAGE DE0TORS
NET SALES
6.
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A8ERAGE DE0TORSQ =OPENING DE0TORS CLOSING DE0TORS> +
PARTICULARS +,,H)-, +,-,)+,-- +,--)+,-+ +,-+)+,-3 +,-3)+,-.
A8ERAGEDE0TORS
666-6 6566 6H53 636., .3-.3
NET SALES -566-,H -H/H3+ +.3-655 +6,+-H +H3H/36
DE0TORS
TURNO8ER
RATIO
+HH 336+ .-+3 ./53 /-3
2 0 0 9 - 2 0 1
0
2 0 1 0 - 2 0 1
1
2 0 1 1 - 2 0 1
2
2 0 1 2 - 2 0 1
3
2 0 1 3 - 2 0 1
4
0102030405007080
29.98 33.5241.23
4.73
8.13
DEBTOR TURNO!ER RATIO
DE,TORS TURNOVER
RATIO
INTERPRETATION2
De"&rs< "ur#&Ber ra"!& !#d!7a"es "he speed (!"h (h!7h "he am&u#" !s e!#* 7&$$e7"ed
%r&m "he de"&rs The h!*her "he ra"!& "he e""er !" !s: s!#7e !" !#d!7a"es "he am&u#" %r&m "hede"&rs !s e!#* 7&$$e7"ed m&re 'u!7@$1 The m&re 'u!7@$1 "he de"&rs pa1: "he $ess r!s@ %r&m
ad de"s: a#d s& $&(er !s "he epe#ses &% 7&$$e7"! a#d !#7rease !# "he $!'u!d!"1 &% "he %!rm
01 7&mpar!#* "he de"&rs< "ur#&Ber ra"!& &% "he 7urre#" 1ear (!"h "he preB!&us 1ear: !" ma1 e
assessed (he"her "he sa$es p&$!71 &% "he ma#a*eme#" !s e%%!7!e#" &r #&"
As sh&(# !# "he *raph a&Be: "here has ee# a# !#7rease !# "he ra"!& %r&m
+,,H)-, "& +,-3)+,-.%r&m +HH "& /-3 (h!7h sh&(s "ha" "he sa$es ma#a*eme#" &% "he
%!rm !s 'u!"e e%%!7!e#"
66
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& DE%T ,$**E,TI$N +ERI$D
Da1s Sa$es Ou"s"a#d!#* !s a sh&r" 4 "erm =&pera"!#*> A7"!B!"1 ra"!& (h!7h "e$$s us
a&u" "he de"&rs h&$d!#* "!me The m&re "he h&$d!#* per!&d "he m&re r!s@1 !" e7&mes %&r
"he 7&mpa#1 A h!*h de" 7&$$e7"! per!&d !#d!7a"es "ha" "he 7&mpa#1 !s "a@!#* "!me "&
7&$$e7" 7ash %r&m !"s de"&rs The 7ash !s #&" e!#* 7&$$e7"ed "!me (h!7h !s #&" a *&&d s!*#
%&r "he 7&mpa#1: !" !s a red %$a*
?ORMULA Q 3/6 DE0TORS TURNO8ER RATIO
PARTICULARS +,,H)-, +,-,)+,-- +,--)+,-+ +,-+)+,-3 +,-3)+,-.
DE0TORS
TURNO8ER
RATIO
+HH 336+ .-+3 ./53 /-3
NO O? DAYS 3/6 3/6 3/6 3/6 3/6
DE0T
COLLECTION
PERIOD
-+ -- H 6
2 0 0 9 - 2 0 1
0
2 0 1 0 - 2 0
1 1
2 0 1 1 - 2 0
1 2
2 0 1 2 - 2 0 1
3
2 0 1 3 - 2 0 1
4
0
2
4
8
10
12
12 119
8 5
DEBT CO""ECTION PERIOD
DE,T COLLECTION
PERIOD
INTERPRETATION2
6/
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De" 7&$$e7"! per!&d mea#s "he aBera*e #umer &% da1s "ha" "he de"&rs "a@e "& *e"
7Ber"ed "& 7ash I# &"her (&rds: 7red!" sa$es are $&7@ed up !# de"&rs %&r "he #umer &%
da1s
As (e 7a# see here: "he de" 7&$$e7"! per!&d has 7&me d&(# %r&m -+ da1s "& 6 da1s
(h!7h mea#s "ha" "he de"&rs *e" 7Ber"ed "& 7ash !# 6 da1s A# !#7rease !# "he ra"!&
!#d!7a"es e7ess!Be $&7@a*e &% %u#ds (!"h "he de"&rs (h!7h !#7reases "he 7ha#7es &% ad
de"s I# "h!s 7ase as (e 7a# see "ha" "here !s a de7rease !# "he aBera*e 7&$$e7"! per!&d
(h!7h !#d!7a"es pr&mp" pa1me#" 1 de"&rs (h!7h redu7es "he 7ha#7es &% ad de"s
There%&re: %r&m "he a&Be da"a !" 7a# e 7$uded "ha" "he 7&mpa#1 !s !# a e""er p&s!"!
a#d !s !mpr&B!#* as 7&mpared "& !"s preB!&us 1ears
5 ST$,0 TURN$)ER RATI$
The I#Be#"&r1 Tur#&Ber Ra"!& measures "he e%%!7!e#71 &% "he %!rm
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2 0 0 9
- 2 0 1
0
2 0 1 0
- 2 0 1
1
2 0 1 1
- 2 0 1
2
2 0 1 2
- 2 0 1
3
2 0 1 3
- 2 0 1
4
5.5
5.
5.7
5.8
5.9
.1
.2
5.72 5.7
.07
5.91
.13
TOCK TURNO!ER RATIO
STOC+ TURNOVER RATIO
INTERPRETATION2
Th!s ra"!& !#d!7a"es "he re$a"!sh!p e"(ee# "he 7&s" &% *&&ds s&$d dur!#* "he 1ear a#d
aBera*e s"&7@ @ep" dur!#* "ha" 1ear The ra"!& !#d!7a"es (he"her "he s"&7@ has ee# e%%!7!e#"$1
used &r #&" I" sh&(s "he speed (!"h (h!7h "he s"&7@ !s "ur#ed !#"& sa$es dur!#* "he 1ear
The *raph a&Be sh&(s "ha" a%"er a# !#7rease !# "he ra"!& %r&m "he 1ear +,-3)+,-. "& +,--)
+,-+ =65/)/,5> "here !# "he 1ear +,-+)+,-3=6H-> a%"er (h!7h a*a!# a r!se !# "he ra"!& !# "he1ear +,-3)+,-.=/-3> A h!*h ra"!& !s !#d!7a"!Be "ha" "he s"&7@ !s se$$!#* 'u!7@$1
6 +A.A%*ES TURN$)ER RATI$
A$"h&u*h a77&u#"s pa1a$e are $!a!$!"!es ra"her "ha# asse"s: "he!r "re#d !s s!*#!%!7a#" as "he1
represe#" a# !mp&r"a#" s&ur7e &% %!#a#7!#* %&r &pera"!#* a7"!B!"!es The 7red!"&rs "ur#&Ber
ra"!& !s a# !mp&r"a#" "&&$ &% a#a$1s!s as a %!rm 7a# redu7e !"s re'u!reme#" &% 7urre#" asse"s 1
re$1!#* supp$!er+
PARTICULARS +,,H)-, +,-,)+,-- +,--)+,-+ +,-+)+,-3 +,-3)+,-.
NET CREDITPURCASE
++/3,- +363, /+.-/- 6+-6.+ /63H6
6
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A8ERAGE
CREDITORS
+.,,- 3-H.5, 36.3-, 3H/.5+ .33/
PAYA0LES
TURNO8ER
RATIO
,5H ,53 -5/ -3- -6/
2 0 0 9 - 2 0 1
0
2 0 1 0 - 2 0 1
1
2 0 1 1 - 2 0 1
2
2 0 1 2 - 2 0 1
3
2 0 1 3 - 2 0 1
4
0
0.5
1
1.5
2
0.79 0.731.7
1.31
1.5
PA#AB"E TURNO!ER RATIO
PAYA,LES
TURNOVER RATIO
INTERPRETATION2
The ra"!& !#d!7a"es "he speed (!"h (h!7h "he am&u#" !s e!#* pa!d "& "he 7red!"&rs A h!*her
ra"!& !s e""er s!#7e !" (&u$d !#d!7a"e "ha" "he 7red!"&rs are e!#* pa!d m&re 'u!7@$1 a#d "h!s
!#7reases "he 7red!" (&r"h!#ess &% "he %!rm
ere: "he *raph a&Be sh&(s a s"eep %a$$ !# "he ra"!& %r&m "he 1ear +,--)+,-+=-5/> "& +,-+)
+,-3=-3-> a#d "he# a*a!# a r!se "& "he 1ear +,-3)+,-.=-6/> The reas %&r "he %a$$ 7a# e
a""r!u"ed "& a de7rease !# "he #e" 7red!" pur7hases !# "he 1ear +,-+)+,-3
6H
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C#M6A!"T"VE A$A7S"S
#8
%TATA STEE+@ %SA"+ %-S&+SA"
/,
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S"ee$ Au"h&r!"1 &% I#d!a L!m!"ed =SAIL> !s "he $ead!#* s"ee$)ma@!#* 7&mpa#1 !# I#d!a I" !sa %u$$1 !#"e*ra"ed !r a#d s"ee$ ma@er: pr&du7!#* &"h as!7 a#d spe7!a$ s"ee$s %&r d&mes"!77s"ru7"!: e#*!#eer!#*: p&(er: ra!$(a1: au"&m&"!Be a#d de%e#7e !#dus"r!es a#d %&r sa$e!# ep&r" mar@e"s SAIL !s a$s& am* "he %!Be Mahara"#as &% "he 7&u#"r1s Ce#"ra$ Pu$!7Se7"&r E#"erpr!ses
/-
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SAIL ma#u%a7"ures a#d se$$s a r&ad ra#*e &% s"ee$ pr&du7"s: !#7$ud!#* h&" a#d 7&$d r&$$edshee"s a#d 7&!$s: *a$Ba#!sed shee"s: e$e7"r!7a$ shee"s: s"ru7"ura$: ra!$(a1 pr&du7"s: p$a"es:
ars a#d r&ds: s"a!#$ess s"ee$ a#d &"her a$$&1 s"ee$s SAIL pr&du7es !r a#d s"ee$ a" %!Be!#"e*ra"ed p$a#"s a#d "hree spe7!a$ s"ee$ p$a#"s: $&7a"ed pr!#7!pa$$1 !# "he eas"er# a#d 7e#"ra$
re*!s &% I#d!a a#d s!"ua"ed 7$&se "& d&mes"!7 s&ur7es &% ra( ma"er!a$s: !#7$ud!#* "heC&mpa#1s !r &re: $!mes"e a#d d&$&m!"e m!#es The 7&mpa#1 has "he d!s"!#7"! &%
e!#* I#d!a
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SAIL "ra7es !"s &r!*!# "& "he %&rma"!Be 1ears &% a# emer*!#* #a"! ) I#d!a A%"er
!#depe#de#7e "he u!$ders &% m&der# I#d!a (&r@ed (!"h a B!s! ) "& $a1 "he !#%ras"ru7"ure %&r
rap!d !#dus"r!a$!sa" &% "he 7&u#"r1 The s"ee$ se7"&r (as "& pr&pe$ "he e7&m!7 *r&("h
!#dus"a# S"ee$ Pr!Ba"e L!m!"ed (as se" up Ja#uar1 -H: -H6.
EH)andin' =ori5on >0
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-S&
JSW Gr&up !s e &% "he %as"es" *r&(!#* us!#ess 7*$&mera"es (!"h a s"r* prese#7e !#
"he 7&re e7&m!7 se7"&r Th!s Sa;;a# J!#da$ $ed e#"erpr!se has *r&(# %r&m a s"ee$ r&$$!#* m!$$
!# -H+ "& a mu$"! us!#ess 7*$&mera"e (&r"h US H !$$! (!"h!# a sh&r" spa# &% "!meAs par" &% "he US -6 !$$! O P J!#da$ Gr&up: JSW Gr&up has d!Bers!%!ed !#"eres"s !#
S"ee$: E#er*1: M!#era$s a#d M!#!#*: A$um!#!um: I#%ras"ru7"ure a#d L&*!s"!7s: Ceme#" a#d
I#%&rma"! Te7h#&$&*1
O# !"s r&ad "& *r&("h a#d epa#s!: "he Gr&up !s a$s& 7s7!&us a&u" !"s resps!!$!"1
"&(ards e#B!rme#" a#d s&7!a$ deBe$&pme#" E7&)e%%!7!e#71 !s a ma""er &% pr!#7!p$e
PreBe#"!Be measures %&r dama*e "& "he e#B!rme#" are "a@e# !#"& a77&u#" a" "he p$a##!#*
s"a*e &% pr&du7"! a#d *r&("h
JSW ?&u#da"!: a# !#"e*ra$ par" &% "he Gr&up: !s "he CSR (!#*: (!"h a
B!s! "& 7rea"e s&7!& e7&m!7 d!%%ere#7e !# "he %!e$ds &% Edu7a"!: ea$"h a#d Sp&r"s:
C&mmu#!"1 Re$a"!sh!pPr&pa*a"! as (e$$ as Ar": Cu$"ure a#d er!"a*e
/.
JSW ?&u#da"! p$a#s a#d !mp$eme#"s s&7!a$ deBe$&pme#" a7"!B!"!es &% "he JSW *r&up &% 7&mpa#!es I" !s a# !#depe#de#" !#s"!"u"! a#d !s *&Ber#ed 1 a 0&ard &% Trus"ees (h& !sdra(# %r&m "he se#!&r ma#a*eme#" &% "he JSW *r&up &% 7&mpa#!es The ?&u#da"! !sheaded 1 Mrs Sa#*!"a J!#da$ (h!$e "he ee7u"!Be !s headed 1 Shr! Ju*a$ Ta#d !# h!s7apa7!"1 as CEO: C&rp&ra"e Sus"a!#a!$!"1 A "eam &% s&7!a$ deBe$&pme#" pr&%ess!a$s !s
ased !# Muma! a#d a" eBer1 $&7a"! (here JSW has !"s &pera"!s a#d u#der"a@e7&mmu#!"1 ased a7"!B!"1 !# 7su$"a"! (!"h "he!r respe7"!Be ma#a*eme#"s A# AdB!s&r10&ard 7&mpr!s!#* &% em!#e#" NGO $eaders has ee# 7s"!"u"ed re7e#"$1 "& re#der adB!7e s&7!a$ pr&7esses a#d par"!7!pa"&r1 p$a##!#* a#d ee7u"! &% pr&;e7"s
A s&7!a$ deBe$&pme#" p&$!71 has ee# a77ep"ed 1 "he *r&up JSW 7her!shes pe&p$e a#d e$!eBes !# !#7$us!Be *r&("h "& %a7!$!"a"e 7rea"! &% a Ba$ue ased a#d emp&(ered s&7!e"1"hr&u*h 7"!#u&us a#d purp&se%u$ e#*a*eme#" &% a$$ s"a@eh&$ders I# par"#ersh!p (!"he"er#a$ deBe$&pme#" a*e#7!es: JSW (&u$d s"r!Be "&a7h!eBe sus"a!#a$e deBe$&pme#" !# a$$spheres &% $!%e !#7$ud!#* !#"e*ra"ed 7&mmu#!"1 deBe$&pme#": pr&m&"! &% ar"s a#d 7u$"ure:e#B!rme#" pr&"e7"! a#d sp&r"s
As a resps!$e 7&rp&ra"e: JSW (&u$d !#"e*ra"e !"s e#B!rme#": R a#d e"h!7a$ us!#ess p&$!7!es (!"h appr&pr!a"e 7&mmu#!"1 e#*a*eme#" a#d *e#der e'u!"1 JSW !s 7&mm!""ed "&a$$&7a"! &% -6 &% !"s PAT "& pursue !"s CSR p&$!71 I# "u#e (!"h "h!s: JSW ?&u#da"!(&r@s 7$&se$1 (!"h B!$$a*e 7&mmu#!"!es a#d 7rea"es s1#er*!es (!"h &"her Ber"!7a$s &% "he JSW*r&up "& ass!m!$a"e "he!r !#"erBe#"! !# a s&7!a$ deBe$&pme#" %rame(&r@
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0. W$R0IN ,A+ITA* RATI$
I" !s a ra"!& "ha" re%$e7"s "he am&u#" &% (&r@!#* 7ap!"a$ #eeded "& ma!#"a!# a *!Be#
$eBe$ &% sa$es A h!*h ra"!& !#d!7a"es "he %!rm !s !# a *&&d $!'u!d!"1 p&s!"! a#d B!7e)Bersa
?ORMULA Q NET SALES
NET WORKING CAPITAL
PARTICULARS +,,H)+,-, +,-,)+,-- +,--)+,-+ +,-+)+,-3 +,-3)+,-.
TATA STEEL -5-5 )+,3 ++5 --H .-6
SAIL 3/3 3,- +. -6 +,/
JINDAL .+5H )-,.H ).5 )+ -53.
2 0 0
9 - 2 0 1
0
2 0 1 0 - 2 0 1
1
2 0 1 1 - 2 0 1
2
2 0 1 2 - 2 0 1
3
2 0 1 3 - 2 0 1
4
-50
0
50
100
150
200
TATA STEEL
SAIL
INDAL
INTERPRETATION2
The (&r@!#* 7ap!"a$ ra"!& &% TATA STEEL has ee# %$u7"ua"!#* &Ber "he 1ears The reas %&r
#e*a"!Be (&r@!#* 7ap!"a$ %&r "he 1ear +,-3)+,-. 7a# e a""r!u"ed "& "he de7rease !# 7urre#"
asse"s (hereas a sharp de7rease !# (&r@!#* 7ap!"a$ %&r "he 1ear +,-3)+,-. !s e7ause &% "he
!#7rease !# 7urre#" asse"s su7h as 7ash a#d a#@ a$a#7es: $&a#s a#d adBa#7es a#d a$s&
e7ause &% a# !#7rease !# "he ra( ma"er!a$ 7sump"!
The (&r@!#* 7ap!"a$ ra"!& &% SAIL L"d has ee# %a$$!#* 7s"a#"$1 %r&m "he
1ear +,,H)-, "& "he 1ear +,-+)+,-3 a%"er (h!7h "here (as a# !#7rease !# "he ra"!&
The (&r@!#* 7ap!"a$ &% JSW has sh&(# a sharp de7rease %r&m "he 1ear+,,H)-, "& +,-3)+,-. (here "he (&r@!#* 7ap!"a$ ra"!& rema!#ed 7s"a#"$1 #e*a"!Be %&r "hree
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7se7u"!Be 1ears a#d a%"er "ha" "here (as a# !#7rease !# "he ra"!& The reas %&r "he !#7rease
!# "he ra"!& !s a# !#7rease !# "he 7urre#" asse"s: $&a#s a#d adBa#7es
. ,URRENT RATI$
The 7urre#" ra"!& !s used "& eBa$ua"e a 7&mpa#1
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Curre#" ra"!& sh&u$d "here%&re e ma!#"a!#ed ar&u#d !"s !dea$ s"a#dard
a#d %&r a7h!eB!#* "h!s "he 7&mpa#1
a#d "herea%"er "he ra"!& has ee# de7$!#!#* "hr&u*h&u" u" "he 7&mpa#1 has ma!#"a!#ed "hera"!& a&Be "he !dea$ s"a#dard
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The ra"!& &% JSW had %a$$e# %r&m "he 1ear +,-3)+,-.=,3/> "& +,--)
+,-+=,3.> #e*$!*!$1 a#d "herea%"er !" r&se "& ,3H !# +,--)+,-+ a#d %!#a$$1 "& ,/, !# +,-3)
+,-. The reas %&r "he !#7rease !# "he ra"!& !# +,-3)+,-. (as !#7rease !# "he 7ash a#d a#@
a$a#7es ma!#"a!#ed (!"h "he 7&mpa#1
9. DE%T$RS TURN$)ER RATI$
De"&rs Tur#&Ber Ra"!& &r Re7e!Ba$es Tur#&Ber Ra"!& !#d!7a"es "he
re$a"!sh!p e"(ee# #e" sa$es a#d aBera*e de"&rs I" sh&(s "he ra"e a" (h!7h 7ash !s
*e#era"ed 1 "he "ur#&Ber &% de"&rs
?ORMULA Q A8ERAGE DE0TORS NET SALES
A8ERAGE DE0TORSQ =OPENING DE0TORS CLOSING DE0TORS>
+
PARTICULARS +,,H)-, +,-,)+,-- +,--)+,-+ +,-+)+,-3 +,-3)+,-.
TATA STEEL +HH 336+ .-+3 ./53 /-3SAIL -/3- -.53 -.+- -+.. ---/
JINDAL ) 333 3,5 355 33,6
2 0 0 9 - 2 0 1
0
2 0 1 0 - 2 0 1
1
2 0 1 1 - 2 0 1
2
2 0 1 2 - 2 0 1
3
2 0 1 3 - 2 0 1
4
01020
30405007080
29.98 33.5241.23
4.73
8.13
1.31 14.73 14.21 12.44 11.1
33.838.07
7.87
33.05
TATA STEEL
SAIL SW
INTERPRETATION2
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The de"&rs "ur#&Ber ra"!& has sh&(# a p&s!"!Be r!s!#* *raph "hr&u*h&u" (h!7h !s Ber1 *&&d
%&r "he 7&mpa#1 s!#7e !" sh&(s "he speed (!"h (h!7h "he me1 !s e!#* re7&Bered %r&m "he
de"&rs A#d r!s!#* *raph "hr&u*h&u" sh&(s "ha" "he sa$es ma#a*eme#" !s 'u!"e e%%!7!e#" !#
re7&Ber!#* "he me1 %r&m "he de"&rs
SAIL has a de7$!#!#* *raph "hr&u*h&u" (h!7h !s #&" a *&&d s!*# a#d
"here%&re !" mea#s "ha" 7red!" sa$es haBe ee# made "& "he de"&rs (h& d& #&" deserBe s&
mu7h &% 7red!" a#d "here%&re "he 7&mpa#1 mus" reB!se !"s sa$es p&$!71
JSW has a %$u7"ua"!#* *raph a#d a%"er a s"eep %a$$ !# "he 1ear +,-+)
+,-3 "he ra"!& r&se "& 336 !# "he 1ear +,-3)+,-. The de"&rs a#d "he sa$es %!*ures haBe r!se#
%&r "he 1ear +,-3)+,-. a#d "he reas %&r "he r!se !# "he ra"!& 7a# e e%%!7!e#" sa$es
ma#a*eme#" a#d a s&u#d sa$es p&$!71
1. DE%T ,$**E,TI$N +ERI$D
Da1s Sa$es Ou"s"a#d!#* !s a sh&r" 4 "erm =&pera"!#*> A7"!B!"1 ra"!& (h!7h
"e$$s us a&u" "he de"&rs h&$d!#* "!me The m&re "he h&$d!#* per!&d "he m&re r!s@1 !"
e7&mes %&r "he 7&mpa#1 A h!*h de" 7&$$e7"! per!&d !#d!7a"es "ha" "he 7&mpa#1 !s "a@!#*
"!me "& 7&$$e7" 7ash %r&m !"s de"&rs The 7ash !s #&" e!#* 7&$$e7"ed "!me (h!7h !s #&" a
*&&d s!*# %&r "he 7&mpa#1: !" !s a red %$a*
?ORMULA Q 3/6 DE0TORS TURNO8ER RATIO
PARTICULARS +,,H)-, +,-,)+,-- +,--)+,-+ +,-+)+,-3 +,-3)+,-.
TATA STEEL -+ -- H 6
SAIL ++ +. +/ +H 33
JINDAL -, H H --
2 0 0 9 - 2 0 1
0
2 0 1 0 - 2 0 1
1
2 0 1 1 - 2 0 1
2
2 0 1 2 - 2 0 1
3
2 0 1 3 - 2 0 1
4
0
5
10
15
20
2530
35
TATA STEEL
SAIL
SW
/H
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INTERPRETATION2
The $&(er "he de" 7&$$e7"! per!&d "he $esser "he 7ha#7es &% ad de"s a#d "hus !s e""er %&r
"he %!rm TATA STEEL has a s&u#d sa$e p&$!71 a#d "he aBera*e 7&$$e7"! per!&d has ee#de7reas!#* &Ber "he 1ears a#d %!#a$$1 "he de"&rs are 7Ber"ed "& 7ash !# 6 da1s as !# "he 1ear
+,-3)+,-. a#d $esser !s "he 7&$$e7"! per!&d sh&r"er !s "he &pera"!#* 717$e
SAIL ere (e 7a# 7$ude"ha" TATA STEEL !s !# a e""er p&s!"! as 7&mpared "& "he &"her "(& %!rms SAIL sh&u$d
ma@e s&me ser!&us e%%&r"s "& redu7e !"s de" 7&$$e7"! per!&d
,. ST$,0 TURN$)ER RATI$
The I#Be#"&r1 Tur#&Ber Ra"!& measures "he e%%!7!e#71 &% "he %!rm
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2 0 0 9 - 2 0
1 0
2 0 1 0 - 2 0
1 1
2 0 1 1 - 2 0 1
2
2 0 1 2 - 2 0 1
3
2 0 1 3 - 2 0
1 4
0
1
2
3
4
5
75.72 5.7
.07 5.91 .13
4.224.8 4.8
3.24.09
5.87
5.89
5.745.29
TATA STEEL
SAIL
SW
INTERPRETATION2
The s"&7@ "ur#&Ber ra"!& &% TATA STEEL has ee# r!s!#* "hr&u*h&u" a#d "he 7&s" &% *&&ds
s&$d has a$s& ee# r!s!#* (!"h a r!se !# "he aBera*e s"&7@ ma!#"a!#ed (!"h "he 7&mpa#1 A
h!*her s"&7@ ra"!& "ur#&Ber !s !#d!7a"!Be "ha" "he s"&7@ !s se$$!#* 'u!7@$1: "ha" !s re%$e7"ed (!"h
"he h!*her sa$es
SAIL has %$u7"ua"!#* ra"!& "hr&u*h&u"
JSW has a de7$!#!#* ra"!&: "h&u*h "he 7&s" &% *&&ds s&$d a#d "he aBera*e
de"&rs has ee# r!s!#* u" 7er"a!# !"ems (h!7h haBe "& e e7$uded %r&m "he 7&s" &% *&&ds
s&$d haBe ee# r!s!#* &Ber "he "!me
:. +A.A%*ES TURN$)ER RATI$
A$"h&u*h a77&u#"s pa1a$e are $!a!$!"!es ra"her "ha# asse"s: "he!r
"re#d !s s!*#!%!7a#" as "he1 represe#" a# !mp&r"a#" s&ur7e &% %!#a#7!#* %&r &pera"!#* a7"!B!"!es
The 7red!"&rs "ur#&Ber ra"!& !s a# !mp&r"a#" "&&$ &% a#a$1s!s as a %!rm 7a# redu7e !"s
re'u!reme#" &% 7urre#" asse"s 1 re$1!#* supp$!er+
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PARTICULARS +,,H)-, +,-,)+,-- +,--)+,-+ +,-+)+,-3 +,-3)+,-.
TATA STEEL ,5H ,53 -5/ -3- -6/
SAIL 6./ 6+- /-. 3-3 3+
JINDAL 5-5 /+ /6- 65
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
0
1
2
3
4
5
7
8
9
0.79 0.73
1.71.31
1.5
5.4 5.21
.14
3.133.82
7.17
.28 .51
8.57
TATA STEEL
SAIL
SW
INTERPRETATION2
The pa1a$es "ur#&Ber ra"!& mea#s "he speed (!"h (h!7h "he 7red!"&rs are e!#* pa!d TATA
STEEL has a r!s!#* *raph (h!7h !#d!7a"es "ha" "he 7red!"&rs &% "he %!rm are e!#* pa!d "!me
a#d 'u!"e %re'ue#"$1 a#d "h!s he$ps !# !#7reas!#* "he 7red!" (&r"h!#ess &% "he %!rm
SAIL has had a %a$$ !# "he ra"!& dras"!7a$$1 %r&m "he 1ear +,--)+,-+
"& "he 1ear +,-+)+,-3
JSW !s 'u!"e e%%!7!e#" !# pa1!#* &%% !"s 7red!"&rs A ra"!& &% 65 "!mes
ma#s "ha" "he speed (!"h (h!7h "he 7&mpa#1 pa1s "& !"s 7red!"&rs !s 'u!"e h!*h
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!AT"# A$A7S"S
W'AT IS RATI$ ANA*.SIS
A "&&$ used 1 !#d!B!dua$s "& 7du7" a 'ua#"!"a"!Be a#a$1s!s &% !#%&rma"! !# a 7&mpa#1s
%!#a#7!a$ s"a"eme#"s Ra"!&s are 7a$7u$a"ed %r&m 7urre#" 1ear #umers a#d are "he# 7&mpared
"& preB!&us 1ears: &"her 7&mpa#!es: "he !#dus"r1: &r eBe# "he e7&m1 "& ;ud*e "he
per%&rma#7e &% "he 7&mpa#1 Ra"!& a#a$1s!s !s pred&m!#a"e$1 used 1 pr&pe#"s &%
%u#dame#"a$ a#a$1s!s
S!#*$e m&s" !mp&r"a#" "e7h#!'ue &% %!#a#7!a$ a#a$1s!s !# (h!7h 'ua#"!"!es are 7Ber"ed !#"&
ra"!&s %&r mea#!#*%u$ 7&mpar!ss: (!"h pas" ra"!&s a#d ra"!&s &% &"her %!rms !# "he same &r
d!%%ere#" !#dus"r!es Ra"!& a#a$1s!s de"erm!#es "re#ds a#d ep&ses s"re#*"hs &r (ea@#esses &%
a %!rm
Ra"!&s 7a# e %&u#d &u" 1 d!B!d!#* e #umer 1 a#&"her #umer Ra"!&s sh&( h&( e
#umer !s re$a"ed "& a#&"her I" ma1 e epressed !# "he %&rm &% 7&)e%%!7!e#": per7e#"a*e:
pr&p&r"!: &r ra"e ?&r eamp$e "he 7urre#" asse"s a#d 7urre#" $!a!$!"!es &% a us!#ess a
par"!7u$ar da"e are +,,:,,, a#d -,,:,,, respe7"!Be$1 The ra"!& &% 7urre#" asse"s a#d 7urre#"
$!a!$!"!es 7&u$d e epressed as + =!e +,,:,,, -,,:,,,> &r +,, per7e#" &r !" 7a# e
epressed as +2- !e: "he 7urre#" asse"s are "(& "!mes "he 7urre#" $!a!$!"!es Ra"!& s&me"!mes
!s epressed !# "he %&rm &% ra"e ?&r !#s"a#7e: "he ra"!& e"(ee# "(& #umer!7a$ %a7"s: usua$$1
&Ber a per!&d &% "!me: e* s"&7@ "ur#&Ber !s "hree "!mes a 1ear
,lai:ication o: Acco;nting Ratio/
Ra"!&s ma1 e 7$ass!%!ed !# a #umer &% (a1s "& su!" a#1 par"!7u$ar purp&se D!%%ere#" @!#ds
&% ra"!&s are se$e7"ed %&r d!%%ere#" "1pes &% s!"ua"!s M&s"$1: "he purp&se %&r (h!7h "he ra"!&s
are used a#d "he @!#d &% da"a aBa!$a$e de"erm!#e "he #a"ure &% a#a$1s!s The Bar!&us
a77&u#"!#* ra"!&s 7a# e 7$ass!%!ed as %&$$&(s2
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C$ass!%!7a"! &% A77&u#"!#* Ra"!&s ?!#a#7!a$ Ra"!&s
=A>
Trad!"!a$ C$ass!%!7a"! &r
S"a"eme#" Ra"!&s
=0>
?u#7"!a$ C$ass!%!7a"! &r
C$ass!%!7a"! A77&rd!#* "&Tes"s
=C>
S!*#!%!7a#7e Ra"!&s &r Ra"!&s
A77&rd!#* "& Imp&r"a#7e
• Pr&%!" a#d $&ss a77&u#"
ra"!&s &rreBe#ue!#7&mes"a"eme#" ra"!&s
• 0a$a#7e shee" ra"!&s &r
p&s!"! s"a"eme#"ra"!&s
• C&mp&s!"em!ed
ra"!&s&r !#"er s"a"eme#"ra"!&s
• Pr&%!"a!$!"1 ra"!&s
• L!'u!d!"1 ra"!&s
• A7"!B!"1 ra"!&s
• LeBera*e ra"!&s &r
$* "erm s&$Be#71ra"!&s
• Pr!mar1 ra"!&s
• Se7dar1 ra"!&s
Ai/
Ra"!& a#a$1s!s !s a# !mp&r"a#" a#d a*e)&$d "e7h#!'ue &% %!#a#7!a$ a#a$1s!s The %&$$&(!#* are
s&me &% "he adBa#"a*es 0e#e%!"s &% ra"!& a#a$1s!s2
- S!mp$!%!es %!#a#7!a$ s"a"eme#"s2 I" s!mp$!%!es "he 7&mprehe#s! &% %!#a#7!a$s"a"eme#"s Ra"!&s "e$$ "he (h&$e s"&r1 &% 7ha#*es !# "he %!#a#7!a$ 7d!"! &% "he
us!#ess
+ ?a7!$!"a"es !#"er)%!rm 7&mpar!s I" pr&B!des da"a %&r !#"er)%!rm 7&mpar!s Ra"!&s
h!*h$!*h" "he %a7"&rs ass&7!a"ed (!"h su77ess%u$ a#d u#su77ess%u$ %!rm The1 a$s&reBea$ s"r* %!rms a#d (ea@ %!rms: &BerBa$ued a#d u#derBa$ued %!rms
3 e$ps !# p$a##!#*2 I" he$ps !# p$a##!#* a#d %&re7as"!#* Ra"!&s 7a# ass!s" ma#a*eme#":!# !"s as!7 %u#7"!s &% %&re7as"!#* P$a##!#*: 7&)&rd!#a"!: 7"r&$ a#d7&mmu#!7a"!s
. Ma@es !#"er)%!rm 7&mpar!s p&ss!$e2 Ra"!&s a#a$1s!s a$s& ma@es p&ss!$e7&mpar!s &% "he per%&rma#7e &% d!%%ere#" d!B!s!s &% "he %!rm The ra"!&s arehe$p%u$ !# de7!d!#* a&u" "he!r e%%!7!e#71 &r &"her(!se !# "he pas" a#d $!@e$1
per%&rma#7e !# "he %u"ure
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6 e$p !# !#Bes"me#" de7!s!s2 I" he$ps !# !#Bes"me#" de7!s!s !# "he 7ase &% !#Bes"&rsa#d $e#d!#* de7!s!s !# "he 7ase &% a#@ers e"7
*imitation o: Ratio Anal>i/
The ra"!&s a#a$1s!s !s e &% "he m&s" p&(er%u$ "&&$s &% %!#a#7!a$ ma#a*eme#" Th&u*h ra"!&s
are s!mp$e "& 7a$7u$a"e a#d eas1 "& u#ders"a#d: "he1 su%%er %r&m ser!&us $!m!"a"!s
- Ra"!&s are ased $1 "he !#%&rma"! (h!7h has ee# re7&rded !# "he %!#a#7!a$s"a"eme#"s ?!#a#7!a$ s"a"eme#"s "hemse$Bes are su;e7" "& seBera$ $!m!"a"!s Thusra"!&s der!Bed: "here %r&m: are a$s& su;e7" "& "h&se $!m!"a"!s ?&r eamp$e: #)%!#a#7!a$ 7ha#*es "h&u*h !mp&r"a#" %&r "he us!#ess are #&" re$eBa#" 1 "he %!#a#7!a$s"a"eme#"s ?!#a#7!a$ s"a"eme#"s are a%%e7"ed "& a Ber1 *rea" e"e#"
1 a77&u#"!#* 7Be#"!s a#d 7ep"s Persa$ ;ud*me#" p$a1s a *rea" par" !#de"erm!#!#* "he %!*ures %&r %!#a#7!a$ s"a"eme#"s
+ C&mpara"!Be s"ud1 re'u!red2 Ra"!&s are use%u$ !# ;ud*!#* "he e%%!7!e#71 &% "he
us!#ess $1 (he# "he1 are 7&mpared (!"h pas" resu$"s &% "he us!#ess &(eBer:su7h a 7&mpar!s $1 pr&B!de *$!mpse &% "he pas" per%&rma#7e a#d %&re7as"s %&r%u"ure ma1 #&" pr&Be 7&rre7" s!#7e seBera$ &"her %a7"&rs $!@e mar@e" 7d!"!s:ma#a*eme#" p&$!7!es: e"7 ma1 a%%e7" "he %u"ure &pera"!s
3 Ra"!&s a$e are #&" ade'ua"e2 Ra"!&s are $1 !#d!7a"&rs: "he1 7a##&" e "a@e# as %!#a$re*ard!#* *&&d &r ad %!#a#7!a$ p&s!"! &% "he us!#ess O"her "h!#*s haBe a$s& "& esee#
. Pr&$ems &% pr!7e $eBe$ 7ha#*es2 A 7ha#*e !# pr!7e $eBe$ 7a# a%%e7" "he Ba$!d!"1 &%ra"!&s 7a$7u$a"ed %&r d!%%ere#" "!me per!&ds I# su7h a 7ase "he ra"!& a#a$1s!s ma1 #&"
7$ear$1 !#d!7a"e "he "re#d !# s&$Be#71 a#d pr&%!"a!$!"1 &% "he 7&mpa#1 The %!#a#7!a$s"a"eme#"s: "here%&re: e ad;us"ed @eep!#* !# B!e( "he pr!7e $eBe$ 7ha#*es !% amea#!#*%u$ 7&mpar!s !s "& e made "hr&u*h a77&u#"!#* ra"!&s
6 La7@ &% ade'ua"e s"a#dard2 N& %!ed s"a#dard 7a# e $a!d d&(# %&r !dea$ ra"!&s Thereare #& (e$$ a77ep"ed s"a#dards &r ru$e &% "hum %&r a$$ ra"!&s (h!7h 7a# e a77ep"ed as#&rm I" re#ders !#"erpre"a"! &% "he ra"!&s d!%%!7u$"
/ L!m!"ed use &% s!#*$e ra"!&s2 A s!#*$e ra"!&: usua$$1: d&es #&" 7Be1 mu7h &% a se#seT& ma@e a e""er !#"erpre"a"!: a #umer &% ra"!&s haBe "& e 7a$7u$a"ed (h!7h !s$!@e$1 "& 7%use "he a#a$1s" "ha# he$p h!m !# ma@!#* a#1 *&&d de7!s!
5 Persa$ !as2 Ra"!&s are $1 mea#s &% %!#a#7!a$ a#a$1s!s a#d #&" a# e#d !# !"se$%Ra"!&s haBe "& !#"erpre"ed a#d d!%%ere#" pe&p$e ma1 !#"erpre" "he same ra"!& !#d!%%ere#" (a1
I#7&mpara$e2 N&" $1 !#dus"r!es d!%%er !# "he!r #a"ure: u" a$s& "he %!rms &% "hes!m!$ar us!#ess (!de$1 d!%%er !# "he!r s!e a#d a77&u#"!#* pr&7edures e"7 I" ma@es7&mpar!s &% ra"!&s d!%%!7u$" a#d m!s$ead!#*
-INAN,IA* RATI$S
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1 NET DE%T T$ E4UIT.
De" !s "he &rr&(ed %u#ds a#d E'u!"1 !s "he &(#ed %u#ds &% a# &r*a#!a"! Th!s ra"!& !s
7a$7u$a"ed "& measure "he e"e#" "& (h!7h de" %!#a#7!#* has ee# used !# a us!#ess A
ra"!& &% -2- !s 7s!dered "& e sa"!s%a7"&r1 Th!s ra"!& !s a$s& @#&(# as E"er#a$)I#"er#a$
ra"!& as !" !#d!7a"es "he re$a"!sh!p e"(ee# "he e"er#a$ e'u!"!es &r "he &u"s!der
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TATA STEEL +,+63 3/H/-, ,66
SAIL =6H+6-+> 333-/5, =,->
JSW H6+H/. H5,/3. ,H
?INANCIAL YEAR +,-3)+,-.
COMPANY NET DE0T SAREOLDER
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2 S'ARE'$*DER?S E4UIT. RATI$
Th!s ra"!& he$ps "& de"erm!#e h&( mu7h shareh&$ders (&u$d re7e!Be !# "he eBe#" &% a
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res!dua$ 7$a!m The h!*her "he ra"!& "he m&re shareh&$ders ma1 re7e!Be a#d B!7e)Bersa
?ORMULAQ SAREOLDRE
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JSW 6+5-- +3+6/3H ,,+3
?INANCIAL YEAR +,-3)+,-.
COMPANY SAREOLDER
SAREOLDER
8/18/2019 2 Project Taj Working
80/114
TATA STEEL has made e%%&r"s "& $&(er "he ra"!& a#d %!#a$$1 su77eeded
"& d& s& I% (e 7s!der "he ra"!&s %&r "he 1ear +,-3)+,-.: (e 7a# see "ha" TATA ATEEL !s !#
a e""er p&s!"! "ha# "he &"her "(& 7&mpa#!es
3 DE%T T$ NET W$RT' RATI$ - The #e" de" "& #e" (&r"h ra"!& has s!*#!%!7a#7e "&
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me1 a#d "& %!#a#7e !"s *r&("h A us!#ess &(#er #eeds "& @#&( "he &p"!ma$ de" "& #e"
(&r"h ra"!& %&r "he e#e%!" &% !"s 7&mpa#1 The #e" de" sh&u$d #eBer e h!*her "ha# "he
#e" (&r"h !" !s a ad s!*# %&r "he 7&mpa#1
?ORMULA Q LONG TERM DE0T NET WORT
LONG TERM DE0T Q SECURED LOANS UNSECURED LOANS 4 CAS 9
0ANK 4 CURRENT IN8ESTMENTS
NET WORTQ EUITY SARE CAPITAL PRE?ERENCE SARE CAPITALRESER8ES 9 SURP