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TATA STEEL

STUDY OF THE BALANCE SHEET FOR

THE YEAR 2009-10

GROUP 11

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ABOUT TATA STEEL

Tata Steel, formerly known as TISCO and TataIron and Steel Company Limited, is the world'sseventh largest steel company, with an annualcrude steel capacity of 31 million tonnes. It is thelargest private sector steel company in India interms of domestic production. It is part of TataGroup of companies. Tata Steel is also India'ssecond-largest and second-most profitable

company in private sector .Steel is the 8th mostvaluable brand according to an annual surveyconducted by Brand Finance and The EconomicTimes in 2010.

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HIGHLIGHT OF THE REPORT

Following the two years of worst global

economic slowdown , when especially the

steel industry was struggling because of the

spiraling cost of basic materials , Tata Steel as

a global enterprise was unaffected by it.

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OWNERS EQUITY

As at 31st March,2010 As at 31-03-2009

SHARE CAPITAL 887.41 6203.41

RESERVES AND SURPLUS 36,074.39 23,972.81

TOTAL SHAREHOLDERS

FUNDS

______________________

36961.80

______________________

30176.81

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SHARE CAPITAL BREAKUP

0

10002000

3000

4000

50006000

7000

8000

9000

Authorised Issued Subscribed

YEAR ENDING 31-03-10

YEAR ENDING 31-03-09

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RESERVES AND SURPLUS

0.00 5,000.00 10,000.0015,000.00

Securities Premium Account

Debenture Redenption

apital Reserve

Export Profits Reserve

ontributions for capital

Debenture Forfeiture

Rupees (crores)

Rupees (crores)

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LIABILITIESAs at 31st March 2010 As at 31-03-09

LOANS

a. SECURED

b. UNSECURED

TOTAL LOANS

2259.32

22,979.88

_____________

25,239.20

3913.05

23,033.13

________________

26,946.18

DEFERRED TAX LIABILITY(NET) 867.67 585.73

FOREIGN CURRENCY MONETARY

ITEM TRANSLATION DIFFERENCE

ACCOUNT

PROVISION FOR EMPLYOEE

SEPARATION COMPENSATION

206.95 ___

TOTAL FUNDS EMPLOYED ___________

64,232.78

__________________

58,741.77

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SECURED LOANS

0 500 1000 1500 2000

Joint Plant Committee- Steeldevelopment fund

Term loan from State Bank of

Patiala

Govt of India

Rupees(Crores)2

Rupees(crores)

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Unsecured Loans

0

1000

20003000

4000

5000

6000

Rupees(Crores)

Rupees(Crores)

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APPLICATION OF FUNDS:ASSETSAs at 31st March 2010 As at 31-03-2009

FIXED ASSETS

a. Gross Block

b. Less-Impairment

c. Less-Depreciation

d. Net Block

26,149.66

106.07

10.037.56

---------------------

16,0006.03

23,544.69

100.47

8,962.00

---------------

14,482.22

INVESTMENTS 44,979.67 42371.38

FOREIGN CURRENCY MONETARY ITEM

TRANSLATION DIFFERENCE ACCOUNT ---- 471.66

CURRENT ASSETS

a. Stores and Spare parts

b. Stock in trade

c. Sundry debtors

d. Interest accrued on investmente. Cash and bank balances

623.76

2,453.99

434.83

0.293234.14

------------------

6,747.01

612.19

2,868.26

635.98

--1590.60

---------------

5,707.05

a. LOANS AND ADVANCES 5,499.68

-------------------

12,246.69

4,561.04

----------------

10,268.09

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As at 31st March

2010

As at 31-03-09

Less: CURRENT LIABILITIES AND PROVISIONSA. Current Liabilities

B. Provisions

6,653.09

2,346.52

--------------

8,999.61

6,039.86

2,917.19

---------------

8,957.05

NET CURRENT ASSETS 3,247.08 1,311.04

MISCELLANEOUS EXPENDITURE

Employee Separation Compensation

-- 105.07

TOTAL ASSETS(Net)

Contingent Liabilities

64,232.78 58,741.77

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PROFIT AND LOSS STATEMENT

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INCOME

Rupees(crores) Previous years

Rupees

(crores)

SALES AND OTHER OPERATING INCOME

Less Excise Duty

26,757.80

1,735.82

---------------

25,021.98

26,843.73

2,527.96

----------------

24,315.77

OTHER INCOME 853.79

----------------

25,875.77

308.27

-----------------

24,624.04

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Net sales and other operating income

FY 10 FY 09 Change Change %

Sale of product 25,756 25,945 (190) (1%)

Sale of power

and water

657 566 566 16%

Income from

town,

medicaland other

services

40 41 (0) (.25%)

Other operating

Income

305 291 14 4%

Sales andoperating income 26,758 26,

844 (86) 0%

Less: Excise Duty 1,736 2,528 (792) (31%)

Net sales and

otheroperating income

25,022 24,316 706 3%

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SALES AND OTHER OPERATING

INCOME

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

Sale of

products

Sale of

power and

water

Income from

town etc

Other

operating

income

Rupees(crores)

Previous year

Rupees(crores)

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-100

0

100

200

300

400

500

600

700

Rupees crores

Previous year

Rupees(crores)

OTHER INCOME

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Investments

FY 10 FY 09 Change Change %

Trade

investments

1,781 1,744 37 2%

Investment in

subsidiary

companies

41,480 37,359 4,121 11%

Investment in

mutual funds

1,719 3,269 (1,550) (47%)

Total

investments

44,980 42,372 2,608 6%

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EXPENDITURERupees(crores) Previous years

Ru

pees(crores)

MANUFACTURING AND OTHER EXPENSES 16,396.00 15,525.99

DEPRECIATION 1,

083.18---------------

17,479.18

973.40----------------

16,499.39

Less EXPENDITURE (OTHER THAN

INTEREST)

TRANSFERRED TO CAPITAL AND OTHERACCOUNTS

326.11

---------------

17,

153.07

343.65

----------------

16,

155.74

NET FINANCE CHARGES 1,508.40 1,152.69

TOTAL EXPENDITURE 18,661.47 17,308.43

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NET FINANCE CHARGESRupees (crores) Previous years

Rupees

(crores)

Interest on

(i) Debentures and Fixed Loans

(ii) Others

1,946.98

28.92

--------------1,975.90

1,440.06

78.55

------------1,518.61

Less - Interest capitalised 127.71

---------------

1,848.19

29.11

-------------

1,489.50

Less - (i) Interest received on sundry

advances, deposits, customers

balances etc.

(ii) Income from current investments

(iii) Profit/(loss) on sale of current

investments

82.18

0.53

257.08

-----------------

1,508.40

103.07

100.47

133.27

---------------

1,152.69

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MANUFACTURING AND OTHER

EXPENSES

Rupees crores Previous Years Rupees crores

PURCHASE OF FINISHED,

SEMI-FINISHED STEEL 169.08 358.87

RAW MATERIALS CONSUMED 5,494.74 5,709.91

PAYMENTS TO ANDPROVISIONS FOR EMPLOYEES 2,361.48 2,305.81

OPERATION AND OTHER

EXPENSES 6,813.33 6,213.58

FREIGHT AND HANDLING

CHARGES 1,357.27 1,251.23

PROVISION FOR DOUBTFULDEBTS AND ADVANCES -16 8.61

EXCISE DUTY 81.13 -32.75

ACCRETION/(REDUCTION) IN

STOCKS OF FINISHED AND

SEMI-FINISHED 134.97 -289.27

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OPERATION AND OTHER EXPENSES

Rupees(crores)

Stores and spares

consumed

Fuel oil consumed

Repairs to buildings

Repairs to machinery

Relining expenses

Conversion charges

4.36

6.6

8.6

8.8

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PROFIT BEFORE AND AFTER TAXES

TAXES Rupees(crores) Previous years Rupees

(crores)

CURRENT TAX 1,998.00 2,173.00

DEFERRED TAX 169.50 75.13

FRINGE BENEFIT TAX --

---------------

2,167.50

16.00

-------------

2,113.87

AFTER

BALANCE BROUGHT FORWARD FROM

LAST YEAR

9,496.70 6,387.46

BALANCE BROUGHT FORWARD

Hooghly Met Coke and Power

Company Ltd. on amalgamation

12.28

----------------

14,555.78

--

-------------

11,

589.20

BEFORE

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AMOUNT AVAILABLE FOR

APPROPRIATIONSAPPROPRIATIONS : Rupees(crores) Previous years

Rupees

(crores)

PROPOSED DIVIDENDS 709.77 1,168.95

DIVIDEND ON CUMULATIVE CONVERTIBLE

PREFERENCE SHARES

45.88 109.45

TAX ON DIVIDENDS 122.80

------------

878.45

214.10

-----------------

1,492.50

GENERAL RESERVE 504.68 600.00

DEBENTURE REDEMPTION RESERVE 400.00

-------------

1,783.13

--

------------

2,092.50

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Rupees(crores) Previous years Rupees

(crores)

BALANCE CARRIED TO BALANCE SHEET 12,772.65 9,496.70

Basic Earnings per Share 60.26 69.45

Diluted Earnings per Share 57.31 62.94

Contd..

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Comparison

Tata steel %ge Jindal Steel Works %ge

Sales and other operating

income 96.7 98.7

Manufacturing and other

expenses 63.3 77.01

Net finance Charges 5.82 2.96

Depreciation 4.18 4.59

Total expenditure 72.1 88.13

Profit Before Tax 27.8 11.86

Profit After Tax 19.5 8.57Freight and handling charges 5.2 2.75

Wages 8.04 2.27

Raw Material Consumed 21.3 61.65

*All data is in terms of

revenue

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Depreciation Capital assets whose ownership does not vest in the Company

is depreciated over their estimated useful life or five

years,whichever is less.

Other assets, depreciation is provided on a straight line basisapplying the rates specified in Schedule XIV to the Companies

Act, 1956 or rates based on estimated useful life whichever is

higher. However, asset value upto Rs. 25,000 is fully

depreciated in the year of acquisition.

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Contd..

Buildings30-60 years

Plant and Machinery6 to 21 years

Furniture and Office equipment5 years

Intangables(Computer Software)5-10 years

Depreciation age

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BIBLIOGRAPHY

The data has been taken from Tata Steels

annual report for the year 2009-10.

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THANK YOU!!