A STUDY ON WORKING CAPITAL MANAGEMENT & THE INVENTORY MANAGEMENT AT TATA STEEL

Submitted in partial fulfillment of the curriculum requirement of Masters of business administration of JITS, Jamshedpur

Submitted By KAPIL KUMAR VASHISTH

UNDER THE GUIDANCE OF MR. INDRAJIT ROY & MR. IMTIAZ AHMED

Finance & Accounts Division

TATA STEEL 1|Page

DECLARATION

I hereby declare that the project work is entitled in an original and bonafide work done by me. This is being submitted in partial fulfillment for the requirement of degree of Master of Business Administration from JITS, Jamshedpur To the best of my knowledge, it is an original piece of work done by me and it has neither been submitted to any other organization nor published anywhere before. The contents of this report are based on the research done by me during my tenure of the internship at the FINANCE & ACCOUNTS DIVISION, TATA STEEL, Jamshedpur.

KAPIL KUMAR VASHISTH MBA 2010-2012 JITS, (JAMSHEDPUR) DATE: PLACE: TATA STEEL, JAMSHEDPUR

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ACKNOWLEDGEMENT

No task is singles mans effort, various factors , situations , person integrated to provide the background for accomplishment of a task . So , thanking just a few people for this project would be justified the kind of help , assistance and valuable advice I got from person whom I approached , I will remain indebted to them . It was a great learning experience for me to work on my project from 2nd April to 31st May, 2012 in such a congenial environment in the Main Accounts office TATA STEEL Ltd. at Jamshedpur. I have gathered lots of experience in this limited span of work. I take this opportunity to express my profound gratitude and deep regards to my Guide MR.INDRAJIT ROY & MR. IMTIAZ AHMED, Head-Purchase and Capital Accounts, TATA STEEL for his exemplary guidance, monitoring and constant encouragement throughout the course of this Thesis work. The blessing help and guidance given by them time to time shall carry me a long way in my journey of life on which I am about to embark. Last but not the least I would express my heartfelt gratitude to, Mr. GAUTAM GHOSH for allowing me to do this project at TATA STEEL. My several well-wishers helped me directly or indirectly; I virtually fall short of words to express my gratefulness to them. Therefore, I am leaving this acknowledgement incomplete in their reminiscence.

KAPIL KUMAR VASHISTH

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EXECUTIVE SUMMARY
The internship is a bridge between the institute and organization. This training program is designed to give the future manager a feel about the corporate happenings and work culture of an organization. These real life situations are entirely different from the stimulated exercise enacted in an artificial environment inside the classroom and it is precisely because of this reason that this summer training program is designed, so that managers of tomorrow get ideas about the real time business operations. The summer internship program helps us to apply our theoretical knowledge into the practical field. This project gives a complete picture of inventory management and working capital management at TATA STEEL. Inventory management is a great problem at TATA STEEL .As it is manufacturing firm, delay or other issues related to stock, poses serious problems and huge losses. Inventory management is a part of financial accounts of an organization. Hence the project underlines the relationship of inventory with financial accounts and all other important aspect of inventory management at TATA STEEL.

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Table of Contents
RESEARCH METHODOLOGY .............................................................................................. 7 AIM OF THE PROJECT ...................................................................................................... 7 OBJECTIVE OF THE PROJECT ....................................................................................... 7 RESEARCH DESIGN ............................................................................................................ 7 RESEARCH METHODOLOGY .......................................................................................... 7 SOURCES OF DATA ............................................................................................................ 7 INTRODUCTION ...................................................................................................................... 9 WORKING CAPITAL........................................................................................................... 9 CONCEPT OF WORKING CAPITAL ............................................................................... 9 CONSTITUTENTS OF WORKING CAPITAL ............................................................... 10 FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS........... 10 PRINCIPLES OF WORKING CAPITAL MANAGEMENT POLICY ......................... 12 FINANCING WORKING CAPITAL ................................................................................ 13 LONG TERM FINANCING: .......................................................................................... 13 SHORT TERM FINANCING: ........................................................................................ 13 SPONTANEOUS FINANCING: ..................................................................................... 13 THE CONCEPT OF ZERO WORKING CAPITAL ........................................................ 14 INVENTORY ........................................................................................................................ 15 INVENTORY MANAGEMENT......................................................................................... 15 FUNCTIONS OF INVENTORY ......................................................................................... 15 TYPES OF INVENTORIES ................................................................................................ 16 RAW MATERIAL ........................................................................................................... 16 WORK IN PROGRESS ................................................................................................... 16 INVENTORY MODELS ..................................................................................................... 17 INVENTORY MODELS FOR INDEPENDENT DEMANDS ......................................... 17 ECONOMIC ORDER QUANTITY MODEL ............................................................... 17 PRODUCTION ORDER QUANTITY MODEL ........................................................... 18 QUANTITY DISCOUNT MODEL ................................................................................ 19 GENERAL POLICIES FOR EFFECTIVE INVENTORY MANAGEMENT .............. 19 MONITORING AND CONTROL OF INVENTORIES .................................................. 19 METHOD OF VALUATION .............................................................................................. 20 OTHER METHODS ARE ............................................................................................... 20 Highest In, First out (HIFO) ............................................................................................ 20 REPLACEMENT/CURRENT PRICE METHOD ........................................................ 21 ACCOUNTING STANDARD RELATING TO VALUATION OF INVENTORY ....... 21 INVENTORY AT TATA STEEL ........................................................................................... 22 RAW MATERIAL AND MINES: ...................................................................................... 22 5|Page

RAW MATERIALS: ........................................................................................................ 22 COAL MINES....................................................................................................................... 24 MINING PRACTICES ........................................................................................................ 24 INVENTORY PLANNING AT TATA STEEL ................................................................. 25 INDUSTRY OVERVIEW ........................................................................................................ 26 COMPANY PROFILE............................................................................................................. 30 CAPACITY ........................................................................................................................... 32 Vision & mission of tata steel............................................................................................... 33 BOARD MEMBERS ............................................................................................................ 35 TYPES OF PRODUCT ........................................................................................................ 36 BUSINESSS AREAS ............................................................................................................ 44 COMPANY STRATERGY ................................................................................................. 45 CORPORATE OBJECTIVES ............................................................................................ 45 TATA STEELS INTERNATIONAL VENTURES .......................................................... 46 SWOT ANALYSIS ............................................................................................................... 47 AWARDS AND ACHIEVEMENTS ................................................................................... 48 MARKET SHARE OF TATA STEEL ............................................................................... 48 GROWTH AND FUTURE PROSPECTS OF TATA STEEL ......................................... 49 COMPETITORS .................................................................................................................. 50 FINANCIAL ANALYSIS OF TATA STEEL ........................................................................ 51 PROFITABILITY MEASUREMENT RATIO: .................................................................... 58 INVENTORY RATIOS ....................................................................................................... 68 OPERATING CYCLE ......................................................................................................... 76 NET OPERATING CYCLE ................................................................................................ 80 COMPARISON BETWEEN TATA STEEL, JSW AND SAIL RATIOS ........................... 81 WORKING CAPITAL RATIOS ............................................................................................ 93 TIME SERIES TREND ANALYSIS OF TATA STEEL...................................................... 98 TIME SERIES-TREND ANALYSIS ...................................................................................... 99 FINDINGS AND RECOMMENDATIONS ......................................................................... 101 CONCLUSION ................................................................................................................... 102 BIBLIOGRAPHY ................................................................................................................... 103

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RESEARCH METHODOLOGY
AIM OF THE PROJECT
To carry out critical, comparative and statistical analysis at Tata Steel Ltd.(Steel Division inventory management). To find out area of weakness in the existing inventory control mechanism. Data analysis related to the total stock in trade, stores and spares. To find other steel companies ratio and compare with Tata Steel Ltd. OBJECTIVE OF THE PROJECT To study and understand the inventory management of Tata Steel and its comparison with other steel companies. To study the modern techniques used for inventory management. To determine the efficiency of the organization with the help of various ratios. To analyze different technique to maintain optimum inventory by the management.

RESEARCH DESIGN The project study is based on descriptive and applied research. This project involves detail analytical research of the existing inventory management system in Tata Steel Ltd. In the later phase the project follows concessive research design. In depth analysis of various information gathered, have been done to arrive at the findings and conclusion. The project is properly design to meet the set objective. RESEARCH METHODOLOGY This study is based on descriptive and applied research .The accounting as well as planning in control in inventory is thoroughly studied by using consumption pattern and ratio analysis .The result of control mechanism has summarized which helps in identifying the effectiveness of the system under preview, hence ratio analysis has been used to assure of a conclusion. RESEARCH METHODOLOGY CHART Problem Statement: Identify problems that want to study about. Preliminary Research: Identify research s aim and objectives , scope of research and importance of research Literature Review: Review past research that related to the research. Collecting Data: Collects data that need to fulfill the database management inventory system such as by interview and preview current inventory data. Analysis and Result: Analysis all data involved and outcome with result. Recommendation and Conclusion : Suggests any recommendation for future research and conclude the research.

SOURCES OF DATA 7|Page

Primary Source Finance and accounts department Raw material handling department Supply management department Purchase department Secondary Source Companies record Annual reports Websites Intranet of Tata Steel ltd. Presentation of data Data has been presented in the form of table and bar diagram. Data analysis and interpretation Detailed analysis of the data collected has been done using various financial ratios and interpretation has been done thereafter. Limitation Time constraints Gap between theoretical and practical application in the system. Ratios alone cannot show weather performance is good or bad. The study is based on the comparison across companies. Every company follows different accounting policies; hence accurate comparison is not possible. The study is limited to the scope of data publicly available

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INTRODUCTION

WORKING CAPITAL
Working capital is the amount of funds necessary to cover the operating cost of the enterprise. It is calculated by the following formula: Net working capital= current asset-current liabilities. Working capital management is concerned with the problems that arise in attempting to manage the current assets, current liabilities and the interrelationship that exists between them. In other words, working capital management refers to all aspects of administration of both current assets and current liabilities. Capital required for a business can be classified under two main categories: 1) Fixed Capital 2) Working Capital Every business needs funds for two purposes for its establishment and to carry out its day-today operations. Long terms funds are required to create production facilities through purchase of fixed assets such as plant& machinery, land, building, etc. Investments in these assets represent that part of firm's capital which is blocked on permanent or fixed basis and is called fixed capital. Funds are also needed for short-term purpose for the purchase of raw material, payment of wages and other day-to-day expenses etc. These funds are known as working capital. In simple terms, working capital refers to that part of the firm's capital which is required for financing short-term of current assets such as cash, marketable securities, debtors & inventories. Funds, thus, invested in current assets keep revolving fast and are being constantly converted into cash and this cash flow out again in exchange for other current assets. Hence, it is also known as revolving or circulating capital or short term capital.

CONCEPT OF WORKING CAPITAL

There are two concepts of working capital: 1) Gross Working Capital 2) Net Working Capital The gross working capital is the capital invested in the total current assets of the enterprises current assets are those assets which can convert into cash within a short period normally one accounting year.

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CONSTITUTENTS OF WORKING CAPITAL

1) Cash in hand and at dank 2) Bills Receivables 3) Sundry Debtors 4) Short term loans and advances 5) Inventories of stock 6) Temporary investment of surplus funds. 7) Prepaid expenses 8) Accrued incomes 9) Marketable securities In a narrow sense, the term working capital refers to the net working. Net working capital is the excess of current assets over current liability.

FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS

NATURE OF BUSINESS: The working capital requirements of a firm basically depend upon the nature of its business. Heavy manufacturing industries require more working capital than trading and financial firms. SEASONAL VARIATIONS: In certain industries raw materials is not available throughout the year. They have to buy raw materials in bulk during the seasons to ensure an uninterrupted flow and process them during the entire year. A huge amount is thus blocked in the form of material inventories during such seasons, which gives rise to more working capital requirements. WORKING CAPITAL CYCLES: in a manufacturing concern the working capital cycle start with the purchase of raw materials and ends with the realization of cash from the sale of finished products this cycle involves purchase of raw materials and stores its conversion into stocks of finished goods through work in progress with progressive increment of labour and service cost , conversion of finished stock into sales , debtor and receivables and ultimately realization of casts and this cycle. RATE OF STOCK TURNOVER: there is a high degree of Investors Company relationship between the quantum of working capital and the velocity or speed with which the sales are affected. A firm having a high rate of stock turnover will need lower amount of working capital as compared to a firm having a low rate of turnover. 10 | P a g e

CREDIT POLICY: The credit policy of a concern in its dealings with debtors and creditors influence considerably the requirements of working capital. Concerns that purchase its requirements on credit and amount of working capital.

BUSINESS CYCLE: Business cycle refers to alternate expansion and contraction in general business activity. In a period of boom when the business is prosperous there is a need for larger amount of working capital due to increase in sales, rise in price, optimistic expansion of business etc. On the contrary in the time of depression when there is a down swing of the cycle, the business contracts, sales declines, and may have a large amount of working capital lying idle.

RATE OF GROWTH OF BUSINESS: The working capital requirements of a concern increase with the growth of expansion of its business activities. It is difficult to determine the relationship between the volume of business and the growth in the working capital of a business.

PRICE LEVEL CHANGE: Changes in the price level also affects the working capital requirements. Generally the raising price will require the firm to maintain larger amount of working capital as more funds will be required to maintain the same current assets.

EARNING CAPACITY AND DIVIDEND POLICY: Some firms have more earning capacity. Such firms with high earning capacity may generate cash profit from operations and contribute to their working capital. Moreover, a firm that maintains a steady high rate of cash dividend irrespective of its generation of profits needs more working capital.

PRODUCTION POLICY: In certain industries, the demand is subject to wide functions due to seasonal variations. The requirements of working capital in such cases depend upon the production policy. The production could be kept either steady by accumulating inventories during slack periods with a view to meet high demand during the peak season.

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PRINCIPLES OF WORKING CAPITAL MANAGEMENT POLICY

The following are the general principles of a sound working capital management policy: 1) PRINCIPLE OF RISK VARIATION: Risk here refers to the inability of a firm to meet its obligations as and when they become due for payments. Larger investments in current assets with less dependence on short term borrowing increases liquidity, reduces dependence on short term borrowings increases liquidity, reduces risk and there by decreases the opportunity for gain or loss. On other hand less investment in current assets with greater dependence on short term borrowings, reduces liquidity and increases profitability. 2) PRINCIPLE OF COST OF CAPITAL: The variation source of raising working capital finance has different cost of capital and the degree of risk involved. Generally, higher the risk lower is the cost and lower the risk higher is the cost. A sound working capital management should always try to achieve a proper balance these two. 3) PRINCIPLE OF EQUITY POSITION: This principle is concerned with planning the total investment in current assets. According to this principle the amount of working capital invested in each component should be adequately justified by a firm equity position. Every rupee invested in the current assets should contribute to net worth of the firm. The level of current assets may be measured with the help of two ratios: (a) current assets as a percentage of total assets. (b) current assets as a percentage of total sales. 4) PRINCIPLE OF MATURITY OF PAYMENT: This principle is concerned with planning the source of finance for working capital. According to this principle a firm should make every effort to relate maturities of payment to its flow of internally generated fund. Maturity pattern of various current obligations is an important factor in risk assumptions and risk assessment. Generally, shorter the maturity schedule of current liabilities in relation to expected cash inflows, the greater the inability to meet its obligation in time.

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FINANCING WORKING CAPITAL

Financing Working capital is an important part of working capital planning. They are: Long term financing Short term financing Spontaneous financing Mix of these.

LONG TERM FINANCING: Long term financing includes: EQUITY SHARES: These are also called ordinary shares. The share holders money is used to finance the current assets. PREFERENCE SHARES: Preference shares are also a source of working capital finance. The management should decide the preference shares capital to be used to finance day to day trading. DEBENTURE: Debentures are an important source of long term financing. The capital collected through debentures is used to finance current assets. SHORT TERM FINANCING: Refers to those short term credit that the firm has to arrange in advance. BRIDGE LOAN: A short term loan can be used by a person until he removes his current obligations. It provides instant cash flow. It provides instant cash flow. It is also known as interim dividend gap financing or a swing loan. COMMERCIAL PAPER: It is an unsecured short term debt instrument issued by a corporation, typically for the financing of accounts, receivables, inventories and meeting short term liabilities maturities on commercial paper rarely, range any longer than a 270 days. FACTORING: Sales of accounts receivables is caused factoring. It is financing intermediary that purchase receivables from companies.

SPONTANEOUS FINANCING: They are cost free financing source. Therefore a firm would like to finance as much as possible.

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THE CONCEPT OF ZERO WORKING CAPITAL

In todays world of intense global competition, working capital management is receiving increasing attention from managers striving for peak efficiency the goal of many leading companies today, is Zero working capital. Proponent of the zero working capital Concept claims that a movement toward this goal not only generates cash but also speeds up production and helps business make more timely deliveries and operate more efficiently. The concept has its own definition of working capital: inventories+ receivablespayables. The rational here is (i) that inventories and receivables are the keys to making sales, but (II) that inventories can be financed by suppliers through account payables .Companies use about 20% of working capital for each sale. So, on average, working capital is turned over five times per year. Reducing working capital and thus increasing turnover has two major financial benefits. First every money freed up by reducing inventories or receivables, by increasing payables, results in a one timecontribution to cash flow. Second, a movement toward zero working capital permanently raises a companys earnings. The most important factor in moving toward zero working capital is increased speed. If the production process is fast enough, companies can produce items as they are ordered rather than having to forecast demand and build up large inventories that are managed by bureaucracies. The best companies delivery requirements. This system is known as demand flow or demand based management. And it builds on the just in time method of inventory control. Clearly it is not possible for most firms to achieve zero working capital and infinitely efficient production. Still, a focus on minimizing receivables and inventories while maximizing payables will help a firm lower its investment in working capital and achieve financial and production economies.

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INVENTORY Inventory refers to goods and materials that held available in stock by a business. In accounting inventory is considered an Asset. Inventory is most expensive Asset of a company, representing as much as 40% of total invested capital. INVENTORY MANAGEMENT Inventory management is primarily about specifying the size and placement of stocked goods. Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance or uncertainties of running out of materials or goods. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. Inventory management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory. This process usually involves controlling the transfer in of units in order to prevent the inventory from becoming too high, or dwindling to levels that could put the operation of the company into jeopardy. Competent inventory management also seeks to control the costs associated with the inventory, both from the perspective of the total value of the goods included and the tax burden generated by the cumulative value of the inventory.

FUNCTIONS OF INVENTORY To maintain certain amount of inventory to prevent the time lag present in the supply chain, from supplier to user at every stage. Economies of scale-Idea condition of one unit at a time at a place where user needs it, principle tends to incur lots of cost in terms of logistics. So bulk buying, movement and storing brings in economies of scale thus inventory. To provide stock of goods to meet anticipated demand of any customers To separate production from the distribution. For example if product demand is high only during the summer, a firm may build up stock during the winter and thus avoid the costs of shortage and stock out during the summer. To hedge against inflation and price changes. To protect against any shortage that can occur due to weather, suppliers shortages, quality problems or improper deliveries. To take advantage of quantity discount, since purchase in larger quantities can reduce the cost of goods. To meet the uncertainties and fluctuations in demand. To protect against any shortages that can occur due to weather, suppliers shortages, quality problems or improper deliveries. To permits operations to continue smoothly with the use of inventory.

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TYPES OF INVENTORIES
RAW MATERIAL Raw materials are inventory items that are used in the manufactures conversion process to produce components, sub assemblies, or finished products. These inventory items may be commodities or extracted materials that the firm or its subsidiary has produced or extracted. They also may be objects or elements that the firm has purchased from outside organisation. Even if the item is partially assembled or is considered as finished goods to the suppliers, the purchaser may consider it as raw material if his firm has no input into its production. Typically , raw materials are commodities such as ore, paper, wood, paint, steel, food items, minerals, chemicals, grains etc. However ,items such as nut & bolts, ball bearings, key stock, casters, seats and even engines may be regarded as raw materials if they are purchased from outside firm. WORK IN PROGRESS Work in process or In-process inventory includes the set at large of unfinished items for products in a production process. These items are not yet completed but either just being fabricated or waiting in a queue for further processing or in a buffer storage. The term is used in production and Supply chain management. Finished Goods (FG) When the good is completed as to manufacturing but not yet sold or distributed to the end-user, it is called a "finished good". New Old Stock (NOS) New Old Stock is a term used in business to refer to merchandise being offered for sale which was manufactured long ago but that has never been used. Such merchandise may not be produced any more, and the new old stock may represent the only market source of a particular item at the present time. SPARE PARTS This category includes those products, which are accessories to main products produced for the purpose of sale. Example of spare items are bolts, nuts, clamps, screws etc. Stock Keeping Unit (SKU) SKU is a unique combination of all the components that are assembled into the purchasable item. Therefore any change in the packaging or product is a new SKU. This level of detailed specification assists in managing inventory. Stock out means running out of the inventory of an SKU. 16 | P a g e

INVENTORY MODELS
Independent versus dependent demand Inventory control model assumes that demand for an item is independent of, or dependent in, the demand for other items. For example the demand for refrigerator is independent of the demand for toaster ovens. However, the demand for toaster oven components is dependent on the production of toaster ovens. Cost associated with independent items: Holding costs: are the costs associated with holding or carrying inventory over time. Therefore, holding cost also includes cost related to storage, such as insurance, extra staffing, and interest payment. Ordering cost: includes costs of supplies, forms, order processing, clerical support etc., when order is being manufactured, ordering cost also exist, but they are known as setup cost. Setup costs: is a cost to prepare a machine or process for manufacturing an order.

INVENTORY MODELS FOR INDEPENDENT DEMANDS

Economic order quantity model. Production order quantity model. Quantity discount model.

ECONOMIC ORDER QUANTITY MODEL It is one of the oldest and most commonly known inventory models. It is based on some assumptions. They are:1) Demand is known and constant. 2) Lead time, the time between the placement of order and the receipt of the order, is

known as constant. 3) Receipt of inventory is instantaneous. That is inventory from an order arrives in one batch, at one time. 4) Quantity discount are not possible. 5) Stock out can be completely avoided if orders are placed at right time.

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Fig: ECONOMIC ORDER QUANTITY

PRODUCTION ORDER QUANTITY MODEL What happens when firm receives its inventory over a period of time? Such case requires a model that does not require the instantaneous receipt assumption. This model is applicable when inventory continuously flows or build up over a period of time after an order has been placed or when units are produced and sold simultaneously. This model is called production order quantity model because it is suitable for production environment. It is useful when inventory continuously builds up over time and the traditional economic order quantity assumptions are valid. This model is derived by setting ordering cost or setup cost equal to holding cost and solving for Q. Setup cost=(D/Q)S Holding cost=1/2 HQ[1-(d/p)] Where D=Annual demand in units for the inventory items Q= Number of pieces per order S= Setup cost for each order H= Holding or carrying cost per units per year d= Daily demand rate or usage rate p= Daily production rate

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QUANTITY DISCOUNT MODEL To increase sales, many companies offer quantity discount to their customers. It is simply reduced price for the item when it is purchased in larger quantities.

GENERAL POLICIES FOR EFFECTIVE INVENTORY MANAGEMENT

Each company must adopt and follow the following internal control policies for inventory: a) Segregation of duties must exist between record keeping and custodial function. b) Adequate accounting control over inventory must be established and maintained. c) Inventory should be stored where loss form fire, theft, temperature, humidity or other elements is minimized. d) Store keeper must compare quantities received against receiving reports. e) Materials may be released form storerooms only on the basis of approved requisition. f) Access to storeroom must be controlled. g) An annual physical inventory must be performed regardless of which inventory system is used. h) If perpetual inventory system is used, then periodic testing of items in the inventory must be performed to verify the accuracy of the perpetual inventory records.

MONITORING AND CONTROL OF INVENTORIES

Some production oriented methods of inventory control to indicate a broad framework for managing inventories efficiently in conformity with the goal of wealth maximization. Selective controls are: ABC Analysis FSN Classification XYZ Classification HML Classification VED Classification SDE/SOS/Golf Analysis Technique ABC Basic Value of conception Main use To control raw material, components and work in progress inventories in normal course of business. Mainly to control purpose To review the inventories and their uses at scheduled interval To determine the stocking level of spare parts To control obsolescence Lead time analysis and purchasing strategies Procurement strategies Procurement/Holding strategy for seasonal items 19 | P a g e

XML XYZ VED FSN SDE GOLF SOS

Unit price of material Value of item in storage Critically of components Consumption pattern of components Problems faced in procurement Source of material Nature of supplies

METHOD OF VALUATION
Usually closing stock is value at lower of the historical cost and net realizable value. Historical cost means cost of purchase, cost of conversion and other cost incurred in a normal course of business in bringing the inventories up to their present location and condition. Net realizable order to make sale. There is no unique formula for determining historical cost of inventories. Several methods are used for pricing inventories used in production but there are three basic approaches to value inventory that are followed by GAAP: 1. First in, First out(FIFO) 2. Last in, First out(LIFO) 3. Weighted Average First in, First out (FIFO) Under FIFO method of inventory valuation, inventories purchased first are issued first. The closing inventories are valued at latest purchase prices and inventory issues are valued at corresponding old purchase prices. Last in, First out (LIFO) LIFO method of inventory valuation states that units of inventory should be valued at the prices paid for the latest purchase and closing inventories should be valued at the price paid for earlier purchases. Weighted Average Under this method, material issues are priced at the weighted average cost of material in the stock. Under this both inventory and cost of goods sold are based upon the average cost of all units bought during the period. When inventory turns over rapidly this approach will more closely resemble FIFO and LIFO. OTHER METHODS ARE Highest In, First out (HIFO) In accounting, an inventory distribution method in which the inventory with highest cost of purchase is the first to be used or taken out of stock. This will impact the companys books such that for any given period of time, the inventory expenses will be the highest possible. Standard Price Method Materials are price based on standard cost which is predetermined. When the material is purchased the stock account will be debited with standard price. The difference between the purchased price and standard price will be carried into a variance account.

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REPLACEMENT/CURRENT PRICE METHOD In this method the material is priced at the value that is realizable at the time of issue. The valuation of the work in progress and finished goods inventory depends to a certain extend on the method of pricing the raw materials and to a large extent on the method of costing that is used. Direct costing and absorption costing are the two techniques used for allocation of costs to the inventory.

ACCOUNTING STANDARD RELATING TO VALUATION OF INVENTORY

The most generally accepted accounting principle (GAAP) for valuation of closing stock is that it should be valued at historical cost or net realizable value whichever is lower. Historical Cost represents an appropriate combination of the: Cost of purchase Cost of conversion Other cost incurred in normal course of business in bringing the inventories up to their present location and condition. Net Realizable Value is the actual or estimated selling price in ordinary course of business, less cost of completion and cost necessarily to be incurred in order to make sale. AS-2 issued by Council of the ICAI recommend use of FIFO, Average cost or LIFO method for valuation of inventories cutting down many other alternatives methods.

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INVENTORY AT TATA STEEL

RAW MATERIAL AND MINES:

RAW MATERIALS: Tata Steel consumes different types of raw materials .A raw is classified into different types and they are recognized by name of place from they used to obtain and accounting is done accordingly. For example cooking coal is classified into indigenous and imported. Indigenous is further classified as Jamadoba, bhetland , West bokaro etc..ie.name of place from where they use to obtain and records are maintained accordingly.

LIST OF DIFFERENT TYPES OF ORES CONSUMED BY TATA STEEL 7. Semi soft Coal 1. Coal 8. Imported Anthracite 2. Midding Coal 9. High Volatile Coal 3. Coking Coal 10. Coke 4. Washed Coal 11. Hard Coke 5. Injection Coal 12. Nut Coke 6. Imported hard coking coal 13. Converted Coke OTHER RAW MATERIAL Fluorspar Muriate of Ammonia LIMESTONE AT WORKS Indigenous

Dolomite Bhutan Dolomite Pyroxenite Dunite

LIST OF METAL AND FERROY ALLOY USED BY TATA STEEL METALS AND FERROY ALLOY Ferro Moly Ferro Phosphrous Ferro Vanadium Ferro Silicon Ferro Titanium Managanese Metal Lamps Ferro Niobium Ferro Manganese( H.G) Ferro Boron Ferro

FINISHED AND SEMI-FINISHED MATERIALS (Works) FLAT PRODUCT Hot strip Mill Domestic yard Works material yard Export yard

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LONG PRODUCT M.Mill no. 1 and no.2 Export yard AT STOCKYARD Flat Long EXPORTS Flat Long SEMI FINISHED GOODS In process at works Flat Long Agrico.ring plant and RR Mill Finished steel/ Semi finished steel Finished tools / rings

M .I and S.Mill Wire and rod mill

Scrap Semi tools/rings

Tubes Divison Finished tubes at plant Steel from works Scrap at branches and plant Cold rolling complex west(Flat product) RM at plant RM in transit TSSL

W.I.P Non steel external By-products

W.I.P Finished goods at plant

CRM SISSODRA At works In transit Stockyards EPAs

Scrap WRM west At works In transit

Cold rolling complex east (flat product) Stockyard / consignment agent With EPAs(Re rollers) In proces at works

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STORES AND SPARES INVENTORY EIC (rings and agrico) RRM Agrico Ring plant LD- 1 Refectories(production) Wire rod mill Hot strip mill

CRM (east) CRC(west) LD 2 Misc plant Secondary product In transit West Bokaro Jamadoba

COAL MINES
Tata Steel has two collieries in West Bokaro and Jharia ,in the state of Jharkhand. While West Bokaro unit is open cast mines, the Jharia unit is underground. The coal mines are about 150 kms from steel plant at Jamshedpur and produce superior grades of clean coal. Tata Steel collieries use SURPAC, a state of the art software that estimates the volume of coal in every seam. This software is coupled with qualitative detailing that focuses on output consistenvy.To maximize the productivity and utilization, a voice and data equipped Global Positioning System is used which helps to supervise mining activity for machine movement and engine status. The collieries division is equipped with in house washeries, which use the beneficial process to separate coal from impurities. The dense Media Cyclone process utilized over here refines coal particles smaller than 13mm while froth Floatation cells processes coal below 0.5mm. Iron ore mining is integral part of steel making in Tata Steel Limited. It began with discovery of iron ore in 1903.Since then, it has been a long odyssey for Tata Steel mines division. The iron ore units are located in Noamundi , Joda and Katamandi in the state of Jharkhand and Orissa .The mineral ore is crushed, right sized and washed in- house at the site and transported to the steel works in Jamshedpur and to other customers.

MINING PRACTICES
Streamlined Processing: Over the years several modern methods of mining have been initiated here resulting in operational excellence. Some of these are: Roof bolts as the main roof support system in underground operations. Introduction of universal drilling machines for face and roof drilling. Underground usage of Compressed Air drills for Roof bolting operations. Use of Roof Convergence Monitors for Strata control. Use of Screen Bowl centrifuges for dewatering of Fine Clean Coal. Use of PLC based washeries control system. Use of solid bowl centrifuges for dewatering of Tailing. Maximizing Efficiency The West Bokaro Collieries have introduced several innovative practices to improve their operational efficiency. Some of these are: Processing of weathered coal. Ripper to extract thin Seam. Commercial use of Shale.

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Departments Related With Inventory 1. Procurement 2. RMH 3. Stores 4. Finance Accounts 5. Inventory control Raw Materials are life blood for Tata-Steel. As we know that every organization wants to reduce their inventory level because there are number of costs which are directly or indirectly associated with level of inventory. As the level of inventory increases the associated cost like carrying cost, storage cost, maintenance cost etc, also increase and vice-versa.

INVENTORY PLANNING AT TATA STEEL

Before reducing the inventory level company has to plan properly on the basis of past experience and future planning. Inventory planning is the integral part of inventory management program in Tata Steel. Amount of raw material required, stores and spare parts required is estimated on the basis of sales forecast and the production plan. The Sales forecast is done by Customer Service Department which take care of the sale of finished goods such as steel slabs, ingots etc. As per the production plan, in Tata-Steel it is called Annual Business Plan, which state that there would be a production of certain quantities for the required items. This ABP is based on cost accountancy and it takes into concentration all the related cost associated with the production of the goods. This ABP is circulated in the departments as HSM, CRM, LD#1,LD#2, Blast Furnace A-G, Tube Division of the Tata Steel. As per the inventory planning the budgeting for the raw materials and stores & spared parts is allocated.

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INDUSTRY OVERVIEW

Global Steel industry

The current global steel industry is in its best position in comparison to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results. The subprime crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years. However steel production and consumption will be supported by continuous economic growth. The countries like China, Japan, India and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e. 419m ton, Japan accounts for 9% i.e. 118m ton, India accounts for 53m ton and South Korea is accounted for 49m ton, which all totally becomes more than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth. The world steel industry outlook is promising with production seen rising to 1.5 billion tonnes in 2009, up from 1.4 billion tones, in 2008. The future outlook for the worldwide steel industry is very good. Demand is also seen growing with apparent steel use expected to total 1.282 billion tonnes this year, up 6.7 percent from 2007, according to data from the International Iron and Steel Institute (IISI).

Brazil, Russia, India and China (BRIC) were leading growth with an expected increase of 11.1 per cent for 2008 and 10.3 percent for 2009. China's apparent steel use is expected to grow by over 10 percent in 2008 and by 10 percent in 2009. China accounted for 35 percent of the world total this year.

In the European Union a total of 210 million tonnes of steel were produced in 2007, up 1.6 percent from the previous year. World steel production capacity is seen increasing by nearly 19 percent between 2007 and 2010. The steel industry has undergone a few structural changes in the past 3-4 years. So, the outlook for the next few years is likely to be driven by the kind of consolidation that has taken place in the past few years. The other factor that is likely to affect outlook is the extent of demand emerging from BRIC countries. 26 | P a g e

In addition to these two major factors, a cost-push is coming from raw material suppliers. Hence, steel manufacturers have to contend with strong demand on one hand, and costpush on the other. The outlook for the domestic industry looks bright, since India has good iron ore deposits skilled manpower and growing demand for steel. There is an apprehension that if China slows down, it may dump its surplus steel into India. An analysis of global data shows that even if an economy slows down, steel consumption does not fall dramatically. In the case of China, a slowdown can mean that the growth rate may fall from 19-20% to a lower level. But that doesnt mean growth will not take place. China produced around 470 million tonnes (mt) of steel last year, out of which, 66 mt was exported and the rest was consumed within the country. The measures undertaken by the Chinese government recently will reduce exports significantly in the current year. There is also a change in the consumption pattern. For instance, if construction activity slows down, the consumption of white goods will pick up and demand for flat steel products will go up. The new capacities coming up in China are on the flat products side and not on the long products side. Overall, the impact on the supply side will be less. Similarly, the cost of production is very high it costs around $500 per ton to produce more than 100 mt of steel in China. Since the cost of production is very high and exports are not allowed, many of these plants will be closed down by 09-10.This will reduce the supply of steel. Theres a feeling that India doesnt have much iron ore, considering the recent capacity expansion plans of domestic and foreign steel companies in India. There is a possibility that if we continue exporting iron ore, we may run out of reserves. Currently, we export 90-100 mt ever year and this is steadily increasing. Ideally, we should increase our steel production capacity we are a net importer of steel so that rather than exporting iron ore, we can add value to it. India should also look at investing in exploring new mines.

Indian Steel Industry-An Overview

India has traditionally been one of the major producers of steel in the world. Till the 1990s the steel industry of India was regulated and controlled by government policies. After the economic reforms of the early 1990s, the Indian steel industry has evolved significantly to conform to India has set a vision to be an economically developed nation by 2020. The steel industry is expected to play a major role in India's economic development in the coming years. The steel industry of India has a very high growth potential and is expected to register significant growth in the coming decades. India is expected to emerge as a strong force in the global steel market in coming years. Major aspects that are expected to play a significant role in the growth of the steel industry in India are Construction Housing Ground transportation

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Hi-tech engineering industries such as power generation, petrochemicals, fertilizers The current scenario of the Indian steel industry indicates that there is huge growth potential in this industry. The per capita-consumption of steel in India, according to latest available estimates, is only 29 kg. This is much less compared to the global average of 140kg. The per capita consumption level of developed nations like the United States of America is 400kg. In this respect, one of the major initiatives that need to be taken is to focus on increasing the consumption of steel in the rural areas of India. The potential for the growth of consumption of steel in the rural areas of India for purposes like rural housing, rural infrastructure, etc is high which needs to be tapped efficiently. In order to realize the growth potential in the steel industry of India, it is essential to ensure that the industry can remain competitive. One of the major aspects in this regard is the availability of inputs. Shortage of inputs like coke has led to increase in costs earlier. Moreover proper infrastructure facilities like transport infrastructure, power etc are of prime importance in maintaining the competitiveness of the industry. This has helped in the growth of Indian steel industry. The industry recorded the highest growth rate in the period from 2004-2005, when the growth rate of the steel sector was 4%. The increased consumption of the finished steel products in the domestic market acted as a positive catalyst in the growth process of the Indian steel industry. The favorable market condition has helped the companies operating in Indian steel industry to expand their operations and earn huge profit. India continually posts phenomenal growth records in steel production. In 1992 India produced 14.33 million tones of finished carbon steels and 1.59 million tones of pig iron. Furthermore the steel production capacity of the country has increased rapidly since 19912008, India produced nearly 46.575 million tones of finished steels and 4.393 million of pig iron. Both primary and secondary producers contributed their share to this phenomenal development, while these increases have pushed up the demand for finished steel at a very stable rate. In 1991, a substantial number of economic reforms were introduced by the Indian government. These reforms boosted the development process of a number of industries the steel industry in India in particular which has subsequently developed quite rapidly. In 1992, the total consumption of finished steel was 14.84 million tones . In 2008, the total amount of domestic steel consumption was 43.925 million tones. With the increased demand in the national market, a huge part of the international market is also served by this industry. Today, India is in seventh position among all the crude steel producing countries. The top companies of the Indian steel sector mostly operate in four different forms like producers of pig iron, producers of stainless steel, producers of finished steel products, and producers of semi-finished steel. The companies functional in the steel industry of India are both public sector companies and private sector companies. 28 | P a g e

The rate of production of steel in India has been going up at a steady rate in the last few years. In the recent times Orissa and Jharkhand have been identified as the potential steel destinations of India - the ones that would provide the Indian steel industry with its necessary raw material. There are also a number of steel companies in India like Tata and Arcelor -Mittal that are either coming up or have established themselves as prominent forces in the world steel scenario.

In the recent years a number of major steel corporations of the world have come flocking to India to avail the benefits of the flourishing steel industry of India. The number of steel projects in India has increased as well and this implies that the number of companies lining up to participate in these projects would be increasing.

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COMPANY PROFILE

Fig.4 Over view of TATA STEEL ( Source: Internet)

The TATA Iron and STEEL Company, formerly known as TISCO, began its production in 1911. It was the vision and foresight of Mr. Jamshedji Nusserwanji Tata, that on 27th February, 1908, the first stake was driven into the soil of Sakchi. His vision helped Tata steel overcome several period of adversity and strive to improve against all odd. He untiringly strove to create an organization that could provide India with the strength to stand on its own feet. Tata Steel is the worlds sixth largest steel company, with an annual crude steel capacity of 30 million tonnes per annum. It is the second largest private sector steel company in India in terms of domestic production. Ranked 315th on fortune global 500, it is based in Jamshedpur, Jharkhand, India. It is part of TATA Group of companies in private sector with consolidated revenues of Rs.1,32,110 cores and the net profit of over Rs12,350 cores, during the ended March 31 st ,2008. Its main plant is located at Jamshedpur in Jharkhand with its acquisition of Corus, Nat steel and Millennium Steel it has become a multinational company with operations in various countries The registered office of TATA STEEL is in Mumbai. Tata steel Jamshedpur (India) works has a crude steel production capacity of 6.8 MTPA which is slate to increase to10MTPA by 2011. The company also has proposed three Greenfield steel project in the state of Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam.

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Through investments in Corus , millennium steel (renamed Tata steel Thailand ) and Nat steel holdings, Singapore , Tata steel has created a manufacturing marketing network in Europe , south east Asia and the pacific rim countries. Corus, which manufactured over 20 MTPA of steel in 2008, has operations in the Netherlands, Germany, France, Norway and Belgium. TATA STEEL Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MTPA. Tata steel has proposed a 0.5 MTPA mini blast furnace project in Thailand. Natsteel holdings produce about 2MTPA of steel products across its regional operations in seven countries. Tata steel has lined up a series of Greenfield projects in India and outside which includes: a) 6 million tonnes plant in Orissa b) 12 million tonnes plant in Jharkhand c) 5 million tonnes plant in Chhattisgarh d) 3 million tonnes plant in Iran e) 6.8 million tonnes capacity expansion at Jamshedpur. f) 4.5 million plant in Vietnam. TATA STEEL, through its joint venture with Tata Blue Scope Steel ltd., has also entered the steel building and construction applications market. The iron ore mines and collieries in India give the company a distinct advantage in raw material sourcing. Tata Steel is also striving towards raw materials security through joint venture in Thailand, Australia, Mozambique, Ivory Coast and Oman. Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also Tata Steel has brought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining.

Fig.5 TATA STEEL General Office (Source: Internet)

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CAPACITY
Tata Steel has set an ambitious target to achieve a capacity of 100 million tonne by 2015. Managing Director B. Muthuraman stated that of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions.

Overseas acquisitions have already added up to 21.4 million tonne, which includes Corus production at 18.2 million tonne, Natsteel production at two million tonne and Millennium Steel production at 1.2 million tonne. Tata is looking to add another 29 million tonnes through the acquisition route

Tata Steel has lined up a series of greenfield project in India and outside which includes

1. 6 million tonne plant in Orissa (India) 2. 12 million tonne in Jharkhand (India) 3. 5 million tonne in Chhattisgarh (India) 4. 3-million tonne plant in Iran 5. 2.4-million tonne plant in Bangladesh 6. 5 million tonne capacity expansion at Jamshedpur (India) 7. 4.5 million tonne plant in Vietnam .

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Vision & mission of tata steel

Vision:We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship.

We make difference through Our PEOPLE- By fostering team work, nurturing talent, enhancing leadership capability and acting with pace, pride and passion. Our OFFER- By becoming supplier of choice, delivering premium products and services and creating value with our customers. Our INNOVATION APPROACH- By developing leading edge solution in technology, processes and products. Our CONDUCT- By providing a safe working place, respecting the environment, caring for our communities and demonstrating high ethical standards. Mission:Consistent with the vision and values of the founder, Jamshetji Tata, Tata Steel strives to strengthen Indias industrial base through the effective utilization of staff and materials, the means envisaged to achieved this are high technology and productivity, consistent with modern management practices. Tata Steel recognizes that while honesty and integrity are the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. Overall, the company seeks to scale the heights of excellence in all that it does in an atmosphere free from fears, and thereby reaffirms its faith in democratic values.

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BOARD MEMBERS

MR.RATAN TATA- CHAIRMAN

MR.B. MUTHURAMAN- VICE CHAIRMAN MR.ISHAAT HUSSAIN- COMPANY SECRETARY MR. JACOBUS SCHRAVEN- BOARD MEMBER.

MR. ANDREW ROBB- BOARD MEMBER

MR. S.M. PALIA- BOARD MEMBER

MR. SURESH KRISHNA- BOARD MEMBER DR. KARL-ULRICH KOEHLER- MANAGING DIRECTOR & CEO TATA STEEL EUROPE. MR. H.M. NERURKAR- MANAGING DIRECTOR, TATA STEEL LTD. MR. NUSLIN N. WADIA- BOARD MEMBER

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TYPES OF PRODUCT
AGRICULTURAL IMPLEMENTS TATA STEEL manufactures superior quality agricultural implements through its Agrico division from TATA high carbon Steel, after using a single piece by forging. The high quality of the product makes them the 1st choice in agricultural equipment procurement both in public and in private sector.

Fig.7 Agricultural implements (Source: Internet)

BEARING A wide variety of bearing and auto assemblies are manufactured at TATA STEEL at its bearing division with a production capacity of 30 million bearing division with a production capacity of 30 million bearing numbers per annum. TATA bearing and auto components happen to be the preferred choice of the key players in the targeted industry segment.

Fig.8 Bearing (Source: Internet)

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FLAT PRODUCT Galvanized corrugated sheets under brand name TATA Shaktee has been consistently delivering on its promises of longevity and strength TATA STEELUM, another product of the plant product division happens to be the worlds 1st branded cold rolled steel and has a strong presence in the retail segment through exclusive shops called Selenium zones. LONG PRODUCT Thermo Mechanically Treated (TMT). Rebar from the long Product Division are produced under the brand name Tiscon and are the 1st of its kind to have been introduced in India Tiscon has been the 1st rebarin the country to be awarded the super brand status in the constant rebar category.

Fig.9 Long Products (Source: Internet) PLANT AND EQUIPMENT Multidisciplinary engineering approach for design manufacture and supply of high precision equipment is offered to various industry sector by TATA STEELs growth shop division services include erection and commissioning of all types of equipment in plants and industrial building in addition to a wide variety of jobs in matching and assembly.

Fig.10 Plant (Source: Internet)

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RAW MATERIALS With a century of experience in sourcing raw material through scientific research and development and sustainable mining, TATA STEELs three main areas of raw material, operation are iron- ore, chromites and coal. The companys long term strategy has been designed to have greater control over raw material.

Fig.11 Raw Material (Source: Internet)

TURBO Pipes manufactured by the companys strategy business unit TATA TUBES, is the most prominent brand in the industry today which is retailed through a wide distribution network. A deeply thought out branding exercise was under taken in order to unleash the power of the TATA PIPES brand in the welded steel.

Fig.12 Turbo (Source: Internet)

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WIRES: Steel wires under the brand name TATA Wiron compromise 30% of market share of the organized wire market in India. A wide range of wires manufactured by TATA STEELs wire division cater to the needs of the various industry segments such as automobiles, infrastructure, power and general engineering.

Fig.13.TATA wires (Source: Internet) TECHNOLOGY A collaborative approach, cross-fertilization of better practices and technology absorption through integration of processes have led to measurable results in the Tata Steel Groups performance in the direction of continuous improvement.

Fig.14. Molten Iron (Source: Internet) 39 | P a g e

EAF (electric arc furnace) The capital costs involved in EAF is lower as compared to BOF (Basic Oxygen Furnace). Modern EAF has features such as high transformer capacity, Oxygen lances, Oxy fuel burners, coal injection system, bottom purge holes, water cooled boxes above the slag line, water cooled roof, EBT (eccentric bottom tap hole), Charge hoppers with vibrators etc. to improve productivity. To reduce the power consumption, hot DRI (directly reduced iron) charging facility is available in modern furnaces.

EAF process uses predominantly scrap. DRI is used when the scrap is not available. A new process, which is known as CONARC has been developed by SMS- DEMAG. It employs hot metal, scrap and DRI to different proportions as per their availability.

Fig.15. Liquid iron from the furnace (Source: Internet) BOF (ld Process)

BOF is a very widely used0 process and does not require external heat, as the process utilises the heat generated by the exothermic reactions during the melting operation. Hot metal and scrap are used for melting. Oxygen is blown through a multi-hole lance to carry out the refining operation. Modern converters have tueyers at the bottom through which Argon or Nitrogen gas is purged.

Instrumentation in LD has improved for better productivity. Developments include better multi-hole lances, improvement of blow profile by mathematical models, and use of Magcarb bricks to improve the lining life.

Some of the developments in steel making process at Tata Steel include a) Stack temperature measurements, b) suitable flux practices, c) installation of sub lance, d) Development of SMART lance, e) practices to avoid the converter slag in to steel ladle at the time of tap, f) Auto alloy additions, g) bottom purging of steel ladle etc.

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Secondary refining technology for the production of special grade steels has been introduced. This includes Ladle refining, CAS, Vacuum refining such as RH and Stream Degassing, AOD and calcium treatment etc.

Continuous Casting Technology Continuous casting technology has replaced ingot technology, resulting in higher yield and a substantial increase in productivity and quality. Thin slab casting and strip casting have also been developed to reduce overall CAPEX cost of steel production. Hot Rolling Technology Developments in Hot rolling technologies include:

Some of the advancements in slab reheating technology include a) development of high capacity reheating furnaces, b) development of heat models, c) walking beam concept for uniform heating, d) atmosphere control (% Oxygen) during heating, e) multi fuel burners, f) development of tunnel furnace technology etc.

Implementation of High performance descalers (Water pressure: 200 450 bar) for better removal of furnace scale prior to rolling.

Instituting Vertical Edgers and short stroke hydraulic cylinders for better width control of the finished product.

Development of Semi HSS and oil lubrication in improving the productivity and quality performance of the roughing stand of the hot strip mill.

Fig.16 Hot rolling technology. (Source: Internet)

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Cold Rolling Technology Developments in Cold Rolling technologies include:

Introduction of heat shield, edge heating by Induction heaters prior to finish rolling, semi continuous rolling, coil box etc.

Some of the developments implemented in the finishing mill include:

o o o o o o o o o

Continuously variable crown Roll bending / Roll shifting Mill lubrication to reduce the rolling load Use of HSS rolls for longer campaign life and better product surface quality Inter-strand cooling Completely automated rolling with second level automation system Sophisticated measuring house for width, thickness and flatness control ROT cooling models Robust coilers for winding high strength steels CSP mills have been developed to roll wider / thinner gauge steels.

Surface Inspection System is present in hot strip mills to aid the inspection and quality certification process Ferritic rolling is a process technology, which has been developed to roll thin / soft quality grades.

Development of 6 HI mills for rolling coils with excellent shape control. These mills achieve heavy reduction per pass (higher productivity) with good thickness and flatness controls.

PLTCM (pickling line and Tandem Cold mill) converts hot rolled coils to cold rolls continuously in a very short period of time. High Productivity and good quality are achieved in these mills. The modern mills have auto shape and hydraulically controlled AGC (auto gauge control).

PLTCM has UC (universal crown) crown to achieve better flatness. Work rolls and the intermediate rolls are bent to obtain the desired roll gap profile.

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Developments in Pickling Technologies

Pickling facility is equipped with tension leveller to loosen the scale and improve the strip shape prior to pickling. Hot hydrochloric acid is used to obtain complete removal of surface scale of hot rolled coil prior to cold rolling. Some of the modern pickling lines use Turbo pickling to hasten the scale removal.

Single stand reversing mills are available for the production level of 200 000 TPA. Typical capacity of PLTCM is about 1.25 to 2.0 MTPA. The concept of twin stand mill has been developed to meet the intermediate production capacity around 0.4 0.8 MTPA.

The rolling mills use rolling oils (stable / metastable / unstable) of different quality depending on the mill design and product mix.

Modern pickling units are equipped with ARP (acid regeneration plant) to regenerate the acid thereby reducing pollution.

Single stand reversing mills are available for the production level of 200 000TPA. Typical capacity of PLTCM is about 1.25 to 2.0 MTPA. The concept of twin stand mill has got developed to meet the intermediate production capacity around 0.4 0.8 MTPA.

The rolling mills use rolling oils (stable / metastable / unstable) of different quality depending on the mill design and product mix.

Electrolytic cleaning line removes the rolling oil, which is present on the cold rolled surface. The facility helps to achieve clean and bright surface after cold rolling.

Developments in Annealing Technologies:

There are two types of annealing Batch Annealing and Continuous Annealing. Batch Annealing is chosen when the volume involved per size is small (fragmented orders). During annealing, a protective gas such as HNX (4-6% Hydrogen with balance nitrogen) or 100% Hydrogen is circulated between the coils and the protective cover to facilitate annealing. Pure Hydrogen is preferred in modern annealing furnaces because of superior heat transfer; higher annealing base productivity and good CR surface quality. Continuous annealing line generally has capacity 0.50 1.0 MTPA. Because of higher productivity, many integrated steel plants prefer continuous annealing. The mechanical properties and surface quality of CR coils are good and consistent. If the CRM complex has PLTCM and CAL, the hot rolled coil is converted into CR in less than one hour.

High strength steels can be produced by only CAL process. Galvanising is a process by which the steel is coated by passing it through a molten zinc bath. The coating thickness is controlled by wiping with air or nitrogen, when the strip comes out of the zinc bath. 43 | P a g e

Zinc coating on steel prevents the corrosion of iron by sacrificial protection (Cathodic Protection).

Fig.17. Annealing Technology (Source: Internet)

BUSINESSS AREAS
The activities of the enterprises promoted by TATAs are classified into 12 sectors: Metal and associated industries Automobiles Energy Engineering Chemical and Pharmaceuticals Consumer products Services Agro industries Information technical and communication Exports and overseas operations Finance Constructions.

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COMPANY STRATERGY
Despite the current slowdown in consolidation within the global steel industry, mergers and acquisitions remain a critically important business strategy for most corporate. Steel analysts are expecting new wave of consolidation to take place in the next three years. Global giants are re focussing on positive markets by applying their resources to the core business where they are most needed. This creates opportunities to gain more market share from competitors who diversify and spilt their focus. Acquisition and strategic alliances are also critical to strengthen, refocus and position companies for increased growth and profitability. The Tata Steel group is strongly pursuing its long term strategy for acquiring and developing mining projects for its raw material security for iron ore and coking coal. The group has been concentrating in the geographies that are logistically favourable with respect to its plan in Europe and Asia.

CORPORATE OBJECTIVES
EVA positive core business Sustainable growth Invest in attractive new business Dives, merge, acquire Move from commodities to brand Value creating partnership with customers. Value creating partnership with suppliers. Continue to be the lowest cost producer of steel Outsourcing strategically Excel at TBEM Manage knowledge Improve the quality of life of employees. Improve the quality of life of the communities we serve.

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TATA STEELS INTERNATIONAL VENTURES

1. Corus is Europes second largest steel producer. With main steelmaking operations in the UK and the Netherlands, Corus supplies steel and related services to the construction, automotive, packaging, mechanical engineering and other markets worldwide. Corus comprises three operating Divisions, Strip Products, Long Products and Distribution & Building Systems and has a global network of sales offices and service centres, employing around 37,000 people worldwide.

2. Headquartered in Bangkok, Tata Steel Thailand is a major steel producer in Thailand and is the largest producer of long steel products with a manufacturing capacity of 1.7 mtpa. 3. NatSteel Holdings is headquartered in Singapore and is a leading supplier of premium steel products for the construction industry. It became a 100% subsidiary of Tata Steel in February 2004. NSH produces about 2 MT of steel products annually across its regional operations. 4. Tata NYK Shipping Pte Limited is a Singapore based 50:50 joint venture between Tata Steel and Nippon Yusen Kabushiki Kaisha (NYK line), a Japanese shipping major. 5. Tata steel KZN South Africa proposes to set up high carbon ferrochrome plant in South Africa. The plant is slated to be commissioned by October 2007 with an annual production capacity of 135,000 tonnes during Phase I.

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SWOT ANALYSIS
Strengths: LOW COST AND EFFICIENT LABOUR FORCE STRONG MANAGERIL CAPABILITIES. STRONGLY GLOBLISED INDUSTRY AND EMERGING GLOBAL COMPETITIVENESS. MODERN NEW PLANT. STABLE BALABCE SHEET. EXPERINCE OF TATA GROUP IN DOING. WEAKNESS: HIGH COST OF ENERGY. HIGHER DUTIES AND TAXES. DEPENDENCE ON IMPORTS FOR SALE. MANUFACTURING EQUIPMENTS AND TECHNOLOGY.

OPPORTNITIES: HUGE INFRASTRUCTURE DEMAND. RAPID URBANIZATION. INCREASING DEMAND FOR CONSUMERS DURABLES. UNTAPPED RURAL DEMAND. CONSILIDATION TREND IN STEEL INDUSTRY TO GET EXPOSED TO THE GLOBAL STEEL MARKET.

THREATS: SLOW GROTH IN INFRASTRUCTURE DEVELOPMENT. MARKET FLUCTATION. GLOBAL ECONOMY SLOW DOWN THRETS TO HOSTILE TAKEOVER BY ITS COMPETITORS.

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AWARDS AND ACHIEVEMENTS

Tata Steel has won Golden Peacock Award for Corporate Social Responsibility, march 2009 Tata Steel also won the ET award for the company of the year, Jamshedpur, January 2009. Tata Steel got the best Establishment Award by the president of India, November 2008. Tata steel also received Deming application Prize 2008 Tata Steel also won Make Asia Award for fifth time in October 2008. The company was also recognised as the worlds best steel producer by the world steel Dynamics in 2005. The company is listed in Bombay stock exchange and National stock exchange. TATA STEEL has backed 100 glorious years of experience in steel making. Established in 1907, it is the first integrated steel plant in Asia and now in the worlds second most geographically diversified steel producer and a Fortune 500 company. TATA STEEL has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries.

MARKET SHARE OF TATA STEEL

According to Mr B Muthuraman MD of TATA Steel, better product quality and efficient services are the reasons for TATA Steel's large market share in the country.

Mr Muthuraman told reporters that "India demand grew by 5.5% on quarter on quarter basis in the first quarter. TATA Steel sold 20% more. So we actually took higher market share. It is because of the product and service quality.

He said that during the first quarter this fiscal, sales the firm's domestic operations rose from 1.15 million tonnes in the year ago period to 1.42 million tonnes. However, sales in monetary terms came down to INR 5,554 crores in the period under review from INR 6,087 crore in the first quarter of 2008-09 due to falling steel prices.

He said that there is a considerable scope to create value in steel by providing quality products and quality service adding that focus on quality and branding resulted in rich dividends to the company compared to other players.

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GROWTH AND FUTURE PROSPECTS OF TATA STEEL

TATA Iron and Steel Company (Tata Steel), Asia's first and the country's largest integrated private sector steel plant, is aiming to become a EVA positive company ahead of the three year time frame that it had set for itself. Stating this, Mr B. Muthuraman, Tata Steel, Managing Director, told Business Line here that there has been good progress on the EVA front. "An awareness has been created on this issue, costs were down and Tata Steel was now one of the lowest cost producers of hot rolled coils.'' Company sources said that with costs being brought down Tata Steel has one of the lowest operating costs producing hot rolled coils at between $150 and $160 a tonne as against the Rs 154 per tonne cost of production of Pohang Steel of Korea. It may be mentioned here that hot rolled products such as plates, sheets and coils are widely traded all over the world because of their varied applications. Hence they are used as the industry benchmark. Mr Muthuraman said the company had launched several initiatives to reduce costs right from the mining of coal to procurement of raw materials. Moreover, outsourcing of those activities that do not form the core of Tata Steel's business was also progressing well. A.T. Kearney had been appointed consultants for helping out the company with its efforts in this direction. Beginning from this year, Tata Steel, one of India's most respected companies, embarked on its journey to become an EVA positive company. EVA, or economic value addition (a relatively new concept in the corporate world), is the difference between the return on net assets and the weighted average cost of capital multiplied by the invested capital. Mr Muthuraman said that there were only a handful of steel companies in the world who have a positive EVA and as of now Tata Steel was not among them. To become an EVA positive company Tata Steel would "mobilise all its resources and efforts through value-based management that will help the company earn better returns than the cost of capital. Company sources said that at the current level of investment, Tata Steel requires a PBT of Rs 800 to Rs 1,000 crore to become EVA positive. Tata Steel expects to complete the journey in about three years time. With the progress made in this direction in the last few months it looks possible to achieve it ahead of the target. 49 | P a g e

Alongside its journey towards transforming itself from an EVA negative to a EVA positive status, Tata Steel is laying special emphasis on another area managing knowledge, according to Mr Muthuraman. Knowledge is being regarded in the 21st century as the fourth factor of production (the three conventional ones being land, labour and capital). The central theme of knowledge management is to leverage knowledge and reuse knowledge resources that already exist in a company so that people seek out best practices rather than reinvent the wheel. Referring to the current year, the Tata Steel Managing Director said that production and market reports were good and hot metal production would be more than the targeted amount. The company had improved its product mix and would be selling more of branded products. To a question on future growth areas, he said that entry into some non-steel areas was still being probed. On acquisitions he said that the company as part of its EVA positive enterprise would look out for acquisitions as a means to enhance shareholder value.

COMPETITORS
The major competitors of TATA STEEL are SAIL, JINDAL, JSW STEEL ltd, VISA STEEL ltd., Essar steel ltd, Electro steel steels ltd., OCL iron and steel ltd., Techno craft Industries ltd., Gallantt Ispat ltd, Steel Exchange India ltd.,

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FINANCIAL ANALYSIS OF TATA STEEL

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NET WORKING CAPITAL= CURRENTASSETS/CURRENT LIABILITIES

Table 1: NET WORKING CAPITAL

( in crores)

CURRENT ASSETS STORES & SPARES STOCK IN TRADE SUNDRY DEBTORS INTEREST ACCURED ON INVESTMENT CASH AND BANK BALANCE LOANS AND ADVANCES TOTAL(A) CURRENT LIABILITY SUNDRY CREDITORS SUBSIDIARY COMPANIES INTEREST ACCRUED BUT NOT RECEIVED ADVANCES RECEIVED FROM THE CUSTOMER LIABILITY TOWARDS INVESTORS EDUCATION & PROT FUND PROVISION FOR RETIRING GRATUITIES PROVISION FOR EMPLOYEES BENEFITS PROVISION FOR TAXES PROVISION FOR FRINGE BENEFITS PROPOSED DIVIDENDS TOTAL(B) NET WORKING CAPITAL

2006-07 505.44 1827.54 631.63 0.2 455.41 3055.37 6475.59

2007-08 557.67 2047.31 543.48 0.2 465.04 2452.58 6066.28

2008-09 612.19 2868.28 635.98 0 1590.6 4340.43 10047.5

2009-10 623.76 2453.99 434.83 0.29 3234.14 3628.28 10375.3

2010-11 716.18 3237.3 428.03 0 4141.54 9501.39 18024.4

2006-07 2007-08 2008-09 2009-10 2010-11 3145.99 3243.42 2218.02 2572.94 3139.51 102.61 115.74 1358.12 1514.3 1711.07 47.11 231.05 506.68 676.66 679.31 198.28 226.03 297.37 334.99 40.49 0 1127.5 507.13 2.12 709.77 7485.9 293.84 42.54 0 1601.75 791.29 3.88 1151.06 9414.25

29.21 39.02 34.91 49.31 0 0 470.19 848.54 1143.08 448.68 854.74 493.95 18.37 19.12 19.12 943.91 1191.12 1278.4 5453.66 6768.78 7349.65 1021.93 -702.5

2697.83 2889.39 8610.19

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Graph 1: NET WORKING CAPITAL:

NET WORKING CAPITAL

10000 8000 6000 4000 2000 0 -2000 -702.5 1021.93 2697.83 2889.39 NET WORKING CAPITAL 8610.19

2007

2008

2009

2010

2011

INTERPRETATION Net working capital refers to the excess of current asset over the current liabilities. In the five years, we can see highly fluctuating figures of net working capital. In the year 2007 the net working capital is moderately low but positive. But in the year 2008, the figure falls and becomes negative. This is because of fall in the amount of loans and advances by almost 500 crores. In the subsequent years, the net working capital becomes positive and also improves. In 2011 the net working capital increases to 8610.19 which is a good sign for the company. The increase is majorly due to increase in inventories, loans and advances and cash and bank balances.

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Table 2: CHANGES IN WORKING CAPITAL

CHANGES IN WORKING CAPITAL CURRENT ASSETS STORES & SPARES STOCK IN TRADE SUNDRY DEBTORS INTEREST ACCURED ON INVESTMENT CASH AND BANK BALANCE LOANS AND ADVANCES TOTAL(A) CURRENT LIABILITY Sundry creditors subsidiary companies interest accrued but not due advances received from the customer liability towards investor education & prot fund provision for retiring gratuities provision for employee benefits provision for taxes provision for fringe benefits proposed dividends TOTAL(B) Net working capital

2007-08 10.33357 12.02545 -13.956 0 2.114578 -19.7289 -6.32081

2008-09 9.776391 40.09994 17.01995 -100 242.0351 76.97404 65.62836

2009-10 1.889936 -14.4438 -31.6284 0 103.3283 -16.4074 3.262609

2010-11 14.8166 31.91985 -1.56383 -100 28.05692 161.8704 73.72469

3.096958 12.79602 390.4479 13.99536 33.58439 -100 80.46747 90.50103 4.082744 26.19 24.11445 -168.742

18.47926 1073.423 119.2945 31.56218 -10.5331 0 34.71139 -42.2105 0 7.327557 32.58534 -252.75

6.346187 11.49972 33.5478 12.65091 15.98396 0 -1.36298 2.668286 -88.9121 -44.4798 0.280798

15.52421 12.99412 0.391629 -12.2839 5.062979 0 42.06208 56.03297 83.01887 62.17366 22.18096

28.2004 410.9204

Graph 2: CHANGES IN NET WORKING CAPITAL

Changes in Net working capital

500.000 400.000 300.000 200.000 100.000 0.000 -100.000 -200.000 -300.000 -168.742 -252.750 28.200 Net working capital 410.920

2007-08

2008-09

2009-10

2010-11

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INTERPRETATION The net working capital of TATA STEEL falls in the year 2008 and 2009 by around 49%. This indicates poor working capital management of the company. The fall is basically due to increase in the provisions in the two years. In the year 2009, the net working capital increases and becomes positive indicating improved working capital management. 2011 shows high raise in the net working capital. The raise is due to increase in inventories, cash and bank balances and loans and advances. This is a indication of improved working capital management strategies of TATA STEEL.

LIQUIDITY MEASUREMENT RATIO

CURRENT RATIO= CURRENT ASSETS/ CURRENT LIABILITY

Table 3: CURRENT RATIO: ( in crores)

PARTICULARS
CURRENT ASSET CURRENT LIABILITY

CURRENT RATIO
Graph 3: CURRENT RATIO

2011 18024.44 10995.81 1.64

2010 10375.29 8999.61 1.15

2009 10047.48 8974.41 1.12

2008 6066.28 6768.78 0.90

2007 6475.59 5453.66 1.19

CURRENT RATIO
1.20 1.00 0.80 0.60 0.40 0.20 0.00 CURRENT RATIO 1.12 1.15 1.12 0.90 1.19

2011

2010

2009

2008

2007

INTERPRETATION As per the conventional rule, the current ratio of 2:1 is said to be ideal for any company. In 2007-2008, it has decreased by 24.36% due to decrease in current assets as well as increase in current liabilities, which is not a good sign. Contrary to this, the ratio increased by 24.4% in 2008-2009, 2.67% in the year 2009-2010 and by 42.60 % in 2010-2011.this shows that the company is trying to get upto the standard of 2:1 ratio and is achieving a good position.

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Table 4: ABSOLUTE RATIO:

ABSOLUTE RATIO= CASH &BANK/ CURRENT LIABILITY ( in crores)

PARTICULARS
CURRENT LIABILITY CASH AND BANK

2011 10995.81 4141.54 0.38

2010 8999.61 3234.14 0.36

2009 8974.41 1590.6 0.18

2008 6768.78 465.04 0.07

2007 5453.66 7681.35 1.41

ABSOLUTE RATIO
Graph 4: ABSOLUE RATIO

ABSOLUTE RATIO
2.50 2.08 2.00 1.50 1.00 0.65 0.50 0.00 0.55 0.54 0.22

ABSOLUTE RATIO

2011

2010

2009

2008

2007

INTERPRETATION Absolute liquid ratio was quite high in the year 2006-2007 but in the following years the ratio decreased considerably. The fall was due to increase in current liability as well as decrease in fall in cash balance of TATA STEEL, which indicates that the company maintains low cash balance for the company.

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ACID TEST RATIO= CURRENT ASSETS-INVENTORIES/CURRENT LIABILITY

Table 5: ACID TEST RATIO:

( in crores)
PARTICULARS
CURRENT LIABILITY CASH AND BANK

2011 10995.81 4141.54 0.38

2010 8999.61 3234.14 0.36

2009 8974.41 1590.6 0.18

2008 6768.78 465.04 0.07

2007 5453.66 7681.35 1.41

ACID TEST RATIO

Graph 5:ACID TEST RATIO

ACID TEST RATIO

1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 0.88 0.80 0.59 0.85 ACID TEST RATIO 1.34

2011

2010

2009

2008

2007

INTERPRETATION A quick ratio of 1:1 is considered favorable for a company. TATA STEEL In 2007-2008, quick ratio has decreased by 30.58% which is not a favorable condition as compared to the previous year. In 2008-2009 the ratio has increased by 35.59%, 10% in 2092010 and by 52.2% in the year 2010-2011. In 2010-2011 the ratio has crossed the standard of 1:1 which is a good sign for the company. This increase in quick ratio was due to increase in liquid assets and the reason behind this increase was increase in value of stock as compared to previous year.

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PROFITABILITY MEASUREMENT RATIO:

GROSS PROFIT RATIO= (GROSS PROFIT/NET SALES)*100

Table 6: GROSS PROFIT RATIO ( in crores) PARTICULARS 2011 2010 2009 2008 2007

GROSS PROFIT NET SALES

G.P RATIO

11085.6 29396.35 37.71

9121.89 25021.98 36.46

8854.62 24315.77 36.42

8244.68 19693.28 41.87

6930.64 17552.02 39.49

Graph 6: GROSS PROFIT RATIO

GROSS PROFIT RATIO

42.00 41.00 40.00 39.00 38.00 37.00 36.00 35.00 34.00 33.00 37.71 36.46 36.42 GROSS PROFIT RATIO 39.49 41.87

2011

2010

2009

2008

2007

INTERPRETATION The years 2006-2007, 2007-2008 shows high gross profit a ratio which falls in the following years. In the year 2007-2008, the increase is by 6.02% .where as in the year the ratio falls by 13.04% and continues to be low in the following years. In spite of increase in the gross profit, the ratio falls because the total amount of sales also increases.

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NET PROFIT RATIO= (NET PROFIT/NET SALES)*100

Table 7: NET PROFIT RATIO

( in crores)
PARTICULARS
NET PROFIT NET SALES

N.P RATIO
Graph 7: NET PROFIT RATIO

2011 6865.69 29396.35 23.36

2010 5046.8 25021.98 20.17

2009 5201.74 24315.77 21.39

2008 4687.03 19693.28 23.80

2007 4222.15 17552.02 24.06

NET PROFIT RATIO

25.00 24.00 23.00 22.00 21.00 20.00 19.00 18.00 20.17 21.39 NET PROFIT RATIO 23.36 23.80 24.06

2011

2010

2009

2008

2007

INTERPRETATION The net profit ratio decreases by 1.08% in the year 2007-2008, by 10.1% in 2008-2009 and by 5.70% in 2009-2010. But in the year 2010-2011 the ratio increases by 15.81% which indicates a high proportionate increase in net profit as compared to the last 4 years.

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OPERATING PROFIT= (OPERATING PROFIT/NET SALES)*100

Table 8: OPERATING PROFIT ( in crores)

PARTICULARS
OPERATING PROFIT NET SALES

2011 3421.78 29396.35 11.64015

2010 2324.56 25021.98 9.290072

2009 2632.43 24315.77 10.82602

2008 3091.42 19693.28 15.69784

2007 1271.37 17552.02 7.24344

O.P RATIO

Graph 8: OPERATING PROFIT RATIO

O.P RATIO
20 15 10 5 0 11.64 9.29 7.24 O.P RATIO 10.83 15.70

2011

2010

2009

2008

INTERPRETATION The operating profit ratio increases by 6.27% in the year 2007-2008, but it falls by 9.84% in 2008-2009, by 5.69% in the year 2009-2010. There is a positive change (increase) in the year 2010-2011 by 6.77%. Although the sales are increasing, the proportionate increase in operating profit is much more in 2010-2011.

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TURNOVER RATIO
Table 9: DEBTORS TURNOVER RATIO ( in crores)

DEBTORS TURNOVER RATIO= (NET SALES/ AVERAGE DEBTORS)

PARTICULARS
NET SALES AVG DEBTORS

Debtors Turnover Ratio

2011 29396.35 431.43 68.14

2010 25021.98 535.41 46.73

2009 24315.77 589.73 41.23

2008 19693.28 587.56 33.52

2007 17552.02 577.022 30.42

Graph 9: DEBTORS TURNOVER RATIO

DEBTORS TURNOVER RATIO

70 60 50 40 30 20 10 0 47 41 34 30 DEBTORS TURNOVER RATIO 68

2011

2010

2009

2008

2007

INTERPRETATION This ratio finds out how faster debts are being collected, so higher the ratio better is the debtor turnover. The above chart and table of Tata steel ltd. shows that the debtors turnover ratio is constantly increasing over the years by 13.3%, 20.5%, 14.6%, 44.6% in the year 200708,2008-09,2009-10,2010-11 respectively. In 2010-11, the sales has increased but the debtor has decreased, this shows that Tata Steel has concentrated more on cash sales and this has resulted in an increase in the ratio, which is very good sign for further short term investment or for purchasing stocks.

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CREDITORS TURNOVER RATIO= (CREDIT PURCHASE/ AVERAGE DEBTORS)

Table 10: CREDIOTORS TURNOVER RATIO ( in crores)

PARTICULARS
NET CREDIT PURCHASE AVERAGE CREDITORS

2011 10606.47 2856.23

2010 9346.33 2395.48 3.90

2009 9581.46 2730.72 3.51

2008 6852.49 3194.7 2.14

2007 6417.97 2840.01 2.26

CREDITORS TURNOVER RATIO

3.71

Graph 10: CREDITORS TURNOVER RATIO

CREDITORS TURNOVER RATIO

4 3.5 3 2.5 2 1.5 1 0.5 0 2.14 2.26 CREDITORS TURNOVER RATIO 3.71 3.9 3.51

2011

2010

2009

2008

2007

INTERPRETATION Any business firm purchases raw materials on credit from its suppliers. Creditors turnover ratio denotes that in how quickly a company is able pay back its suppliers. So higher the Creditors turnover ratio better it is for the manufacturing company as well as the supplier, as they can maintain a better relationship between them. The above chart and table shows that Tata steel maintains a poor creditors turnover ratio. This means that companys credit worthiness is not favorable. But on the contrary we can say that Tata steel is taking full advantage of the credit facilities given to them by their suppliers. At the same time being a huge brand they have also maintained a healthy relationship with their suppliers.

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FIXED ASSETS TURNOVER RATIO= (NET SALES/ FIXED ASSETS)

Table 11:FIXED ASSET TURNOVER RATIO ( in crores)

PARTICULARS
NET SALES FIXED ASSET

F.A TURNOVER RATIO

2011 29,396.35 18774.48 1.57

2010 25021.98 16006.03 1.56

2009 24315.77 14482.22 1.68

2008 19693.28 12623.56 1.56

2007 17552.02 11040.56 1.59

Graph 11: FIXED ASSET TURNOVER RATIO

F.A TURNOVER RATIO

1.7 1.65 1.6 1.55 1.5 1.59 1.57 1.56 1.56 F.A TURNOVER RATIO 1.68

2011

2010

2009

2008

2007

INTERPRETATION This ratio shows how effectively company uses its fixed asset to generate sales. The above chart and table of Tata steel ltd. shows that fixed asset ratio is decreased in the year 2007-08 by 1.88%, then increased in the year 2008-09 by 7.69%,then decreased in 200910 by 7.14% and in the year 2010-11 it increase by 0.64%.Though there is fluctuation in the ratio but there is slight changes every year. We can see from the table that there is increase in net sales as well as fixed assets. Inspite of this increase in sales is not in proportion to the increase in fixed assets.

WORKING CAPITAL TURNOVER RATIO= (NET SALES/ NET WORKING CAPITAL)

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Table 12: WORKING CAPITAL TURNOVER RATIO ( in crores)

PARTICULARS
NET SALES NET W.C

2011 29,396.35 7028.63 4.18

2010 25021.98 1375.68 18.19

2009 24315.77 1073.07 22.66

2008 19693.28 -702.5 -28.03

2007 17552.02 1022.29 17.17

W.C TURNOVER

Graph 12: WORKING CAPITAL TURNOVER RATIO

WORKING CAPITAL TURNOVER RATIO

30.00 20.00 10.00 0.00 -10.00 -20.00 -30.00 4.18 WORKING CAPITAL TURNOVER RATIO 18.19 22.66 17.17

-28.03

2011

2010

2009

2008

2007

INTERPRETATION This ratio indicates the velocity of the utilization of net working. In 2006-07 the ratio is 17.17 times which is good. But in 2007-08 there is a decrease of 263.25% due to negative net working capital. But in 2008-09 it has increased by180.4% due to increase in cash, stocks and loans and advance. But again in 2009-10 the ratio has decreased by 19.72%, while the sales and working capital both have increased as compared to previous year. In 2010-10 the ratio falls greatly by 77.02% but remains positive. This indicates that Tata steel needs to pay attention towards its working capital management.

CURRENT ASSET TURNOVER RATIO= (NET SALES/ CURRENT ASSETS) 64 | P a g e

Table 13: CURRENT ASSET TURNOVER RATIO ( in crores)

PARTICULARS
CURRENT ASSET NET SALES

C.A TURNOVER RATIO

2011 18024.44 29,396.35 1.63

2010 10375.29 25021.98 2.41

2009 10047.48 24315.77 2.42

2008 6066.28 19693.28 3.25

2007 6475.59 17552.02 2.71

Graph 13: CURRENT ASSET TURNOVER RATIO

C.A TURNOVER RATIO

3.5 3.25 3 2.5 2 1.5 1 0.5 0 1.63 C.A TURNOVER RATIO 2.71 2.41 2.42

2011 2010

2009

2008 2007

INTERPRETATION This ratio shows how effectively company uses its current asset to generate sales. The above chart and table shows that there is increase in current asset ratio by 19.93% in the year 200708.In the year 2008-09 we can see in the table that there is increase in both net sales as well as current asset but still there is decrease in the ratio by 25.54% due to inefficient use of current asset to generate sales. In the year 2009-10 there is no change in current ratio. Again in 201011 there is decrease in the ratio by 32.37%.this indicates that Tata Steel need to pay attention to its current ratio.

INVENTORY TO WORKING CAPITAL = INVENTORY/WORKING CAPITAL

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Table 14: INVENTORY TO WORKING CAPITAL ( in crores)

PARTICULARS INVENTORY WORKING CAPITAL RATIO OF INVENTORY TO WORKING CAPITAL

Graph 14: INVENTORY TO WORKING CAPITAL

2011 2010 2009 2008 2007 3237.58 2453.99 2868.28 2047.31 1827.54 7028.63 1375.68 1073.07 -702.5 1022.29 0.46 1.78 2.67 -2.91 1.79

RATIO OF INVENTORY TO WORKING CAPITAL

3.00 2.00 1.00 0.00 -1.00 -2.00 -3.00 -2.91 0.46 RATIO OF INVENTORY TO WORKING CAPITAL 1.78 2.67 1.79

2011

2010

2009

2008

2007

INTERPRETATION In order to ascertain that there is no over stocking, the ratio of inventory to working capital is calculated. According to the standard norm Inventory to working capital ratio is 1:1. There has been irregular rise and fall in the ratio. The major reason behind this is sporadic changes in the working capital of Tata steel.

DEFENSIVE INTERVAL RATIO=Absolute Liquid Assets/Daily cash requirement

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Table 15: DEFENSIVE INTERVAL RATIO ( in crores)

PARTICULARS ABSOLUTE LIQUID ASSETS PROJECTED DAILY CASH REQUIREMENT DEFENSIVE INTERVAL RATIO
Graph 15: DEFENSIVE INTERVAL RATIO

2011 7141.33 11.50 620.75

2010 4953.37 8.98 551.37

2009 4859.93 4.42 1099.95

2008 1492.88 1.29 1155.68

2007 11364.92 21.34 532.64

DEFENSIVE INTERVAL RATIO

1200.00 1000.00 800.00 600.00 400.00 200.00 0.00 620.75 551.37 1099.95 1155.68

DEFENSIVE INTERVAL
532.64

2011

2010

2009

2008

2007

INTERPRETATION:The defensive interval ratio is quite good throughout the five years. TATA STEEL has high absolute liquid asset and moderate daily projected cash requirement due to which the company is able to maintain high defensive interval ratio.

TOTAL ASSETS TURNOVER RATIO=Net Sales/Total Assets

Table 16: TOTAL ASSETS TURNOVER RATIO ( in crores)

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PARTICULARS NET SALES TOTAL ASSETS TOTAL ASSETS TURNOVER RATIO

2011 29396.35 78555.91 0.37

2010 25021.98 64232.78 0.39

2009 24315.77 58741.77 0.41

2008 19693.28 47075.52 0.42

2007 17552.02 25597.50 0.69

Graph 16: TOTAL ASSETS TURNOVER RATIO

TOTAL ASSETS TURNOVER RATIO

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 TOTAL ASSETS TURNOVER RATIO

INTERPRETATION The Total assets turnover ratio examines how efficient a company uses its assets to generate sales. There has been a fall in the ratio in the five years which is not a good sign. There are been a constant increase in the Total Assets of the company throughout the year. But Net sales do not increase in the same proportion.

INVENTORY RATIOS
INVENTORY CONVERSION PERIOD This ratio shows that in how many days inventories are converted into net sales and generates revenue for the company. 68 | P a g e

Table 17: INVENTORY CONVERSION PERIOD ( in crores)

INVENTORY CONVERSION PERIOD= (INVENTORY/SALES)*365

2011 2010 2009 2008 2007 CLOSING INVENTORY 3237.58 2453.99 2868.28 2047.31 1827.54 SALES 29396.35 25021.98 24315.77 19693.28 17551.09 INVENTORY CONVERSION PERIOD 40.20 35.80 43.06 37.95 38.01
Graph 17: INVENTORY CONVERSION PERIOD

PARTICULAR

INVENTORY CONVERSION PERIOD

45 40 35 30 25 20 15 10 5 0 INVENTORY CONVERSION PERIOD 43.05 40.19 35.79 37.94 38.006

2011

2010

2009

2008

2007

INTERPRETATION The inventory conversion period shows how efficiently inventory is converted into sales. Smaller the Inventory Conversion Period better is the companys performance. In 2007-2008,it has decreased by 0.16% further In 2008-2009 it has increased 13.47% ,in the year 2009-2010 decreased by 16.86% and in 2010-2011 increased by 12.2%,.This ratio establishes the relationship between sales with average stock. Therefore the company should make an attempt to increase its sales in order to minimize its inventory conversion cost.

Stores and spare part index This ratio shows the index of spare parts, which are used to fixed assets.
Table 18: STORES AND SPARES PART INDEX ( in crores)

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SPARES PART INDEX =(STORES & SPARE PARTS/NET BLOCK FIXED ASSET)*100
PARTICULARS STORES & SPARE PARTS NET BLOCK FIXED ASSET

STORES AND SPARES PART INDEX

2011 716.18 18774.48 3.81

2010 2009 623.76 612.19 16006.03 14482.22 3.90 4.23

2008 442.66 9865.05 4.49

2007 505.44 11040 4.58

Graph 18: STORES AND SPARES PART INDEX

STORES AND SPARES PART INDEX

5 4 3 2 1 0 SPARES PART INDEX 3.81 3.89 4.22 4.48 4.57

2011

2010

2009

2008

2007

INTERPRETATION The ratio shows the index of spare parts, which are used for fixed asset. . The ratio is quite high in 2006-2007. But it falls over the 5 years, which is a good sign. The company should try to maintain the ratio below 4 times. The company should always make an attempt to reduce the use of Fixed Asset so that the expense is reduced. In 2010-2011 it has been decreased by 2.05% as compared to 7.81% in 2009-2010.

Stock turnover ratio Every firm has to maintain a certain level of inventory of finished goods so as to be able to meet the requirement of the business. But the level of inventory should neither be too high nor too low. The stock turnover ratio measure the number of times a company sells its inventories during the year.
Table 19: STOCK TURNOVER RATIO

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( in crores)

STOCK TURNOVER RATIO =COST OF GOODS SOLD /AVG STOCK

PARTICULARS COST OF GOODS SOLD AVG STOCK

STOCK TURNOVER RATIO

Graph 19: STOCK TURNOVER RATIO

2011 2010 2009 2008 2007 19619.5 17807.68 17000.16 12641.08 11290.37 2845.78 2661.13 2457.8 1937.43 1779.82 6.89 6.69 6.92 6.52 6.34

STOCK TURNOVER RATIO

7 6.8 6.6 6.4 6.2 6 6.89 6.69 6.52 6.34 6.91 STOCK TURNOVER RATIO

2011

2010

2009

2008

2007

INTERPRETATION A low ratio indicates speedy conversion of stocks to cost of goods sold or sale. From the above table, we can see that there has been almost a consistent increase in the stock turnover ratio of TATA STEEL. This is a good sign for the company as it indicates that high conversion period leads increased sales and thus increases the profitability of the firm.

Finished goods to current asset The ratio indicates the percentage of finished goods in the current asset of the company. Finished goods are such a component of the current assets which can be easily converted into cash.
Table 20: FINISHED GOODS TO CURRENT ASSET ( in crores)

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FINISHED GOODS TO CURRENT ASSETS=FINISHED GOODS /CURRENT ASSETS*100 PARTICULARS FINISHED GOODS CURRENT ASSET

2011

2010

2009

2008

2007

1392.51 1141.4 1361.85 1074.27 1078.08

18024.44 10375.29 10047.48 6066.28 6475.59 FINISHED GOODS TO CURRENT ASSET 7.73 11.00 13.55 17.71 16.65
Graph 20: FINISHED GOODS TO CURRENT ASSET

FINISHED GOODS TO CURRENT ASSET

20 15 10 5 0 7.73 11 13.55 17.71

16.65

FINISHED GOODS TO CURRENT ASSET

2011

2010

2009

2008

2007

INTERPRETATION Ratio of current asset with finished goods has reduced over the years because of increase in sales of the company. The amount received from the sales was used to make day to day investment in the firm to carry out the operation process. It is a good sign for the company. It has shown increase in 2007-2008 by 6.36%, in 2010-11 it has reduced by 29.72% and in all the years the graph showed the downward movement.

Raw material to current asset: This ratio indicates the percentage of raw material in the current asset of the Company.
Table 21: RAW MATERIAL TO CURRENT ASSET ( in crores)

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RAW MATERIAL TO CURRENT ASSET =RAW MATERIAL(Closing)/CURRENT ASSET

PARTICULARS RAW MATERIAL CLOSING CURRENT ASSET

2011 1763.88 18024.44 0.10

2010 1153.94 10375.29 0.11

2009 1433.26 10047.48 0.14

2008 901.56 6066.28 0.15

2007 720.52 6475.59 0.11

RAW MATERIAL TO CURRENT ASSET

Graph 21: RAW MATERIAL TO CURRENT ASSET

RAW MATERIAL TO CURRENT ASSET

0.15 0.11 0.10 0.10 RAW MATERIAL TO CURRENT ASSET 0.14 0.15 0.11

0.05

0.00

2011

2010

2009

2008

2007

INTERPRETATION The Ratio Raw Material to Current Assets has been reduced over years because of increase in sales of the company. The raw material gets converted into finished goods and these finished goods are sold immediately. So the amount received from the sales is used to make day to day investment in the firm to carry out the operation process. It is a good sign for the company. It has shown increase in 2007-2008 by 33.5%, in 2010-11 it has reduced by 12.01% and in all the years the graph has shown downward movement.

Raw material conversion period This ratio states that how much time (in terms of days) raw materials have to spent in stores before sending to the production department for work-in-progress. High raw material holding period indicates greater ability of company to recover cost incurred in production. Less raw material holding period means increasing warehousing cost and thus less profit.
Table 22: RAW MATERIAL CONVERSION PERIOD ( in crores)

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RMCPERIOD= AVG STOCK OF RAW MATERIAL/TOTAL RAW MATERIAL CONSUMED*365

PARTICULARS OPENING STOCK CLOSING STOCK AVERAGE STOCK TOTAL RAW MATERIALS

RAW MATERIAL CONVERSION PERIOD

Graph 22: RAW MATERIAL CONVERSION PERIOD

2011 1153.94 1763.88 1458.91 6244.01 85.28

2010 1433.26 1153.94 1293.6 5494.74 85.93

2009 901.56 1433.26 1167.41 5709.91 74.63

2008 720.52 901.56 811.04 3429.52 86.32

2007 707.54 720.52 714.03 3121.46 83.49

RAW MATERIAL CONVERSION PERIOD

88.00 85.28 85.93 86.32 83.49

80.00 74.63 72.00 RAW MATERIAL CONVERSION PERIOD

64.00

2011

2010

2009

2008

2007

INTERPRETATION From the above table we can see that raw material conversion period of TATA STEEL is quite high throughout the five years. Although the conversion period falls in the year 2009-2010, it increases further in the preceding years. This is not a good sign as the raw material conversion period increases, the storing cost also increases. Hence the company should try to reduce the raw material conversion period. The raw material holding period is the lowest in the year 2008-09. The reason is the huge increase in the amount of raw materials consumed. This 70% increase is mainly due to higher prices of coal and coke and also due to higher production resulting from the commissioning of H Blast furnace as well as other facilities and operational improvements. Increase in the prices of Ferro alloys also contributed to the increase in raw materials consumed. There is a sudden decrease in the amount of raw material consumed driven primarily by non-usage of imported coke, which led to increase in the raw material holding period. Finished goods conversion period It refers to the time in which the finished goods are converted into Sale or in other way we can say that the time period between production and sales when the finished goods are kept in the ware house before the actual sale is made.
Table 23: FINISHED GOODS CONVERSION PERIOD

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( in crores)

FINISHED GOODS CONVERSION PERIOD=AVG STOCK OF FINISHED GOOD/C0S*365 PARTICULARS 2011 2010 2009 2008 2007 1141.4 1361.85 1074.27 1078.08 OPENING STOCK 1000.6 1074.27 CLOSING STOCK 1392.51 1141.4 1361.85 1074.27 1266.955 1251.625 1218.06 1076.175 1037.27 AVG STOCK OF FINISHED GOODS
COST OF GOODS SOLD

11232.53 12641.05 17000.2 17807.68 11290.37

41.17 36.14 26.15 22.06 33.53

FINISHED GOODS CONVERSION PERIOD

Graph 23: FINISHED GOODS CONVERSION PERIOD

FINISHED GOODS CONVERSION PERIOD

50 40 30 20 10 0 41.16 36.13 26.15 22.05 33.53 FINISHED GOODS CONVERSION PERIOD

2011

2010

2009

2008

INTERPRETATION The finished goods holding period is the highest in the year 2010-11. It is the signal of inefficiency. There is poor sales and liquidity position whereas the finished goods holding period is the lowest in the year 2007-2008 due to efficient sales policies adopted by the company and the demand is met efficiently. It signifies better liquidity position of the company in 2007-2008 as compared to 2010-2011.

Work in progress conversion period: This indicates the speed with which the company is converting its work in progress into finished goods. If the work in progress conversion period increase it means the company is taking more time to convert it into finished goods i.e., production is delayed. Lesser the work in progress holding period lesser will be the blockage of companys fund in the production process.
Table 24: WORK IN PROGRESS CONVERSION PERIOD

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( in crores)

WORK IN PROGRESS CONVERSION PERIOD =(AVG STOCK OF WIP*365)/COP

PARTICULARS OPENING STOCK CLOSING STOCK AVG STOCK OF WIP COST OF PRODUCTION

WIP CONVERSION PERIOD

2011 158.65 81.19 119.92 19189.59 2.28

2010 73.17 158.65 115.91 17412.01 2.43

2009 71.48 73.17 72.325 16428.44 1.61

2008 28.94 71.48 50.21 12414.18 1.48

2007 23.93 28.93 26.44 11555.46 0.84

Graph 24: WORK IN PROGRESS CONVERSION PERIOD

WIP CONVERSION PERIOD

2.5 2 1.5 2.42 1 0.5 0 1.60 WIP CONVERSION PERIOD 1.47 0.83 2.280

2011

2010

2009

2008

2007

INTERPRETATION In the year 2007, we can see that the WIP conversion period is less than a day. Which is a good sign indicating that the Work in progress is converted to finished goods is less time. Over the five years, the conversion period increases. This is not a good sign and indicates reduced efficiency of the company. The major reason can be increase in stock of finished goods. The work in progress is the lowest in the year 2006-07, which shows that there is lot of increase in the demand of steel products( long and flat products)in India due to increase in the infrastructure activities. Huge amount of raw materials are processed into the finished goods.

OPERATING CYCLE
Table 25:OPERATING CYCLE ( in crores)

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Year RAW MATERIAL CONVERSION PERIOD = Opening stock of Raw Materials Closing stock of Raw Materials Average Stock of Raw Materials Total raw material consumed RMCP(days) WORK IN PROGRESS CONVERSION PERIOD = Opening stock of WIP Closing stock of WIP Average Stock of WIP Cost of production WIPCP(days) FINISHED GOODS CONVERSION PERIOD = Opening stock of FG Closing stock of FG Average Stock of FG Cost of goods sold FGHP

2011

2010

2009

2008

2007

365*Average stock of Raw Materials Total raw material consumed 1153.94 1763.88 1458.91 6244.01 85.28 1433.26 901.56 720.52 707.54 1153.94 1433.26 901.56 720.52 1293.60 1167.41 811.04 714.03 5494.74 5709.91 3429.52 3121.46 85.93 74.63 86.32 83.49 365*Average stock of WIP Cost of Production 158.65 73.17 71.48 28.94 23.93 81.19 158.65 73.17 71.48 28.94 119.92 115.91 72.33 50.21 26.44 19189.59 17412.01 16428.44 12414.18 11555.46 2.28 2.43 1.61 1.48 0.83 365*Average stock of Finshed Goods Cost of goods sold 1141.40 1392.51 1266.96 19619.50 23.57 1361.85 1141.40 1251.63 17807.68 25.65 1074.27 1361.85 1218.06 17000.16 26.15 1078.08 1074.27 1076.18 12641.08 31.07 1000.62 1078.08 1039.35 11290.37 33.60

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DEBTORS COVERSION PERIOD =

365*Average Debtors Net Credit Sales

Opening Debtors Closing Debtors Average Debtors Net Credit Sales DCP

434.83 634.88 543.48 631.63 539.40 428.03 434.83 634.88 543.48 631.63 431.43 534.86 589.18 587.56 585.52 29401.35 25021.98 24315.81 19693.25 17552.02 5.36 7.80 8.84 10.89 12.18

CREDITORS CONVERSION PERIOD=

365*Average Creditors Net Credit Purchases

Opening Creditors Closing Creditors Average Creditors Net Credit Purchases CCP(days)

2572.94 2218.02 3243.42 3145.99 2534.03 3139.51 2572.94 2218.02 3243.42 3145.99 2856.23 2395.48 2730.72 3194.71 2840.01 10,606.47 9,346.33 9,581.46 6,852.49 6,417.97 98.29 93.55 104.03 170.17 161.52

Year

2011

2010

2009

2008

2007

Gross Operating cycle (Days) 116.4893418 121.8162 111.2286 129.7579 130.1048

Net Operating Cycle (Days)

18.19819263 28.26614 7.203483 -40.40909

-31.411

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OPERATING CYCLE
The operating cycle consists of the time period between procurement of inventory and the collection of receivables. Quicker the operating cycle less the amount of investment in working capital is needed and it improves the profitability. The duration of the operating cycle depends on the nature of industry and the efficiency in working capital management.
Graph 25: OPERATING CYCLE

Gross Operating cycle (Days)

133 126 119 112 116.48 105 98 111.22 121.81 129.75 130.10 Gross Operating cycle (Days)

INTERPRETATION

The operating cycle is the highest in the year 2006-07, so there is the highest need of working capital in this year, whereas the operating cycle is the lowest. It shows that there is less need for the working capital. This year shows the favorable situation.

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NET OPERATING CYCLE

Graph 26: NET OPERATING CYCLE

Net Operating Cycle (days)

30 20 10 0 -10 -20 -30 -40 -50 -31.39 -40.43 Net Operating Cycle (days) 7.149 28.21 18.14

2007

2008

2009

2010

INTERPRETATION

Net Operating Cycle was negative earlier but with the increase in year it is becoming positive because it is TATA STEELs policy to pay back to its creditors on time and if it does any delay in paying back the company gives back both the principle and interest and thus maintain its creditworthiness.

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COMPARISON BETWEEN TATA STEEL, JSW AND SAIL RATIOS

INVENTORY CONVERSION PERIOD

Table 26: INVENTORY CONVERSION PERIOD ( in crores)

PARTICULARS TATA STEEL JSW SAIL

INVENTORY CONVERSION PERIOD 2010-2011 2009-2010 2008-2009 2007-2008 40.20 35.80 43.06 37.95 65.39 51.95 53.46 49.64 96.99 81.17 84.35 62.64

2006-2007 38.01 42.98 70.72

Graph 27: INVENTORY CONVERSION PERIOD

120.00 100.00 80.00 DAYS 60.00 40.00 20.00 0.00

INVENTORY CONVERSION PERIOD

96.99 81.17 65.39 51.95 40.20 35.80 53.46 43.06 84.35 70.72 62.64 49.64 37.95 42.98 38.01 TATA STEEL JSW SAIL

2011

2010

2009

2008

2007

INTERPRETATION Inventory conversion period denotes that in how many days inventory is being cashed out in sales. So lower the inventory conversion period the better it is for the company. From the above table, we can see that Tata Steel has the best inventory conversion period. That means Tata Steel has inventory which is converted into sales very quickly. Sail has the worst inventory conversion period while JSW has slightly better than that of SAIL.

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STOCK TURNOVER RATIO

Table 27: STOCK TURNOVER RATIO ( in crores)

PARTICULARS TATA STEEL JSW SAIL

STOCK TURNOVER RATIO 2010-2011 2009-2010 2008-2009 6.89 6.69 6.92 6.79 7.73 8.98 21.72 18.11 23.80

2007-2008 6.52 9.37 20.63

2006-2007 6.34 7.63 20.64

Graph 28: STOCK TURNOVER RATIO

STOCK TURNOVER RATIO

25 21.72 20 18.11 15 10 5 0 TATA STEEL JSW 6.79 6.89 8.98 6.92 9.37 6.52 7.63 6.34 SAIL 23.8 20.63 20.64

7.73 6.69

2011

2010

2009

2008

2007

INTERPRETATION Above table shows that SAIL has the highest stock turnover ratio. This indicates that they have higher number of times stock being converted into sales. Tata Steel has a fairly low stock turnover ratio which averages 6.67 times. If they want to improve their Stock turnover ratio, they have to increase their net sales. JSW has slightly better Stock Turnover ratio than Tata Steel averaging 8.08 times.

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AVERAGE INVENTORY TURNOVER

Table 28: AVERAGE INVENTORY TURNOVER ( in crores)

PARTICULARS TATA STEEL JSW SAIL

AVERAGE INVENTORY TURNOVER 2010-2011 2009-2010 2008-2009 2007-2008 9.68 10.94 9.16 8.73 48.83 43.50 43.29 37.00 21.56 21.73 17.21 14.63

2006-2007 9.01 37.85 16.19

Graph 29: AVERAGE INVENTORY TURNOVER

AVERAGE INVENTORY TURNOVER RATIO

60 50 40 30 20 10 0 21.56 9.68 21.73 17.21 10.94 9.16 14.63 8.73 16.19 9.01 48.83 43.5 43.29 37 37.85 TATA STEEL JSW SAIL

2011

2010

2009

2008

2007

INTERPRETATION Average Inventory Turnover Ratio signifies how rapidly and how efficiently inventory is converted into sales. If average inventory turnover is high then company would incur a lot of cost for holding back the inventory as holding cost would increase. The inventory might also become technologically obsolete. Tata Steel has the lowest average inventory turnover ratio among the three which signifies that Tata steel has a better position in terms of converting their inventory into sales.

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FINISHED GOODS TO CURRENT ASSETS

Table 29: FINISHED GOODS TO CURRENT ASSETS

(in crores) PARTICULARS TATA STEEL JSW SAIL FINISHED GOODS TO CURRENT ASSETS 2010-2011 2009-2010 2008-2009 2007-2008 7.73 11 13.55 17.71 13.53 17.29 19.91 19.22 15.68 5.01 5.64 7.36 2006-2007 16.65 7.89 9.26

Graph 30: FINISHED GOODS TO CURRENT ASSETS

FINISHED GOODS TO CURRENT ASSET

25 20 17.29 15 10 7.73 5 0 5.01 5.64 15.68 13.53 11 7.36 9.26 7.89 13.55 19.91

19.22 17.71

16.65

TATA STEEL JSW SAIL

2011

2010

2009

2008

2007

INTERPRETATION Finished goods to current assets of a company denotes that the percentage of finished goods to current assets of the company. Tata Steels finished goods to current asset is decreasing over the years because of increase in sales. In five years Tata Steels finished goods to current asset has decreased by 115.3% which shows that Tata Steel has improved drastically. On the contrary SAIL & JSW has increasing Finished Goods to current assets.

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RAW MATERAIL TO CURRENT ASSETS

Table 30: RAW MATERIAL TO CURRENT ASSETS

(in crores) PARTICULARS TATA STEEL JSW SAIL RAW MATERIAL TO CURRENT ASSETS 2010-2011 2009-2010 2008-2009 2007-2008 0.10 0.11 0.14 0.15 18.61 23.00 17.30 40.21 7.84 5.01 5.64 7.36 2006-2007 0.11 24.59 9.26

Graph 31: RAW MATERIAL TO CURRENT ASSETS

RAW MATERIAL TO CURRENT

45 40 35 30 25 20 15 10 5 0 7.84 5.01 0.1 0.11 18.61 23 17.3 9.26 0.11 24.59 TATA STEEL JSW SAIL 40.21

5.64 0.14

7.36 0.15

2011

2010

2009

2008

2007

INTERPRETATION:
Raw material to current assets denotes that in how many days we can convert raw materials into finished goods and then to sales to generate current assets like cash. From the above table and graph we can say that Tata Steel has the superior Raw material to Current asset ratio than that of JSW and SAIL The Ratio Raw Material to Current Assets has been reduced over years because of increase in sales of the company. The raw material gets converted into finished goods and these finished goods are sold immediately. So the amount received from the sales is used to make day to day investment in the firm to carry out the operation process.

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RAW MATERIAL CONVERSION PERIOD

Table 31: RAW MATERIAL CONVERSION PERIOD

(in crores) PARTICULARS TATA STEEL JSW SAIL RAW MATERIAL CONVERSION PERIOD(days) 2010-2011 2009-2010 2008-2009 2007-2008 85.28 85.93 74.63 86.32 39.26 36.29 37.35 50.76 46.99 55.23 36.57 41.53 2006-2007 83.49 50.32 48.81

Graph 32: RAW MATERIAL CONVERSION PERIOD

100 90 80 70 60 50 40 30 20 10 0 46.99 39.26 85.28

RAW MATERIAL CONVERSION PERIOD

85.93 74.63 TATA STEEL 55.23 37.35 36.29 36.57 50.32 50.76 41.53 48.81 JSW SAIL 86.32

83.49

2011

2010

2009

2008

2007

INTERPRETATION Raw material conversion period is the time period between receiving the raw material and sending them for production. It is the period of stocking the raw materials for usage..Tata Steel has higher Raw material conversion period which is not a good sign for the company as cost of holding period is increasing. JSW& SAIL maintains a superior raw material Conversion period. SAIL has improved its ratio in 2010-2011 from its previous year 2009-2010. JSW has the best conversion period.

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WORK IN PROGRESS CONVERSION PERIOD

Table 32: WORK IN PROGRESS CONVERSION PERIOD

(in crores) PARTICULARS TATA STEEL JSW SAIL WORK IN PROGRESS CONVERSION PERIOD(days) 2010-2011 2009-2010 2008-2009 2007-2008 2.28 2.43 1.61 1.48 3.40 3.26 2.89 2.04 0 0 0 0 2006-2007 0.84 3.89 0

Graph 33: WORK IN PROGRESS CONVERSION PERIOD

WORK IN PROGRESS CONVERSION PERIOD

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 0 0 0 0 0 2.28 3.4 3.26 2.89 2.43 2.04 1.61 1.48 0.84 TATA STEEL JSW SAIL 3.89

2011

2010

2009

2008

2007

INTERPRETATION Work-in-progress conversion period is the time period when the raw materials are received for production and the time for their dispatch. Tata steel has better work in progress conversion period than that of its competitors, which indicates that TATA steel is able to dispatch its raw material in lesser time than its competitor.

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FINISHED GOODS CONVERSION PERIOD

Table 33: FINISHED GOODS CONVERSION PERIOD

(in crores) PARTICULARS TATA STEEL JSW SAIL FINISHED GOODS CONVERSION PERIOD(days) 2010-2011 2009-2010 2008-2009 2007-2008 23.57 25.65 26.15 31.07 18.70 19.18 17.11 12.00 170.85 193.17 166.53 177.31 2006-2007 33.54 9.66 178.71

Graph 34: FINISHED GOODS CONVERSION PERIOD

FINISHED GOODS CONVERSION PERIOD

250 200 170.85 150 100 50 23.57 0 18.7 25.65 19.18 26.15 17.11 31.07 12 33.54 9.66

193.17 166.53 177.31 178.71 TATA STEEL JSW SAIL

2011

2010

2009

2008

2007

INTERPRETATION Finished goods conversion period is the time of storage of finished goods in the warehouse until they are sold. Tata steel is superior in converting their finished goods to sales. Whereas SAIL has a very high conversion period which indicates that they incur high holding costs. JSW has the best Finished Goods Conversion Period.

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DEBTORS TURNOVER RATIO

Table 34: DEBTOR'S TURNOVER RATIO

(in crores) PARTICULARS TATA STEEL JSW SAIL DEBTOR'S TURNOVER RATIO 2010-2011 2009-2010 2008-2009 2007-2008 68.14 46.73 41.23 33.52
32.95 11.11 37.95 12.45 38.09 14.42 39.11

2006-2007 30.42
35.34

14.90

15.58

Graph 35: DEBTOR'S TURNOVER RATIO

DEBTOR'S TURNOVER RATIO

80 70 60 50 40 30 20 10 0 11.11 12.45 14.42 14.9 32.95 32.95 46.73 41.23 38.09 39.11 33.52 35.34 30.42 15.58 TATA STEEL JSW SAIL 68.14

2011

2010

2009

2008

2007

INTERPRETATION Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt collection of a firm. In simple words it indicates the number of times average debtors (receivable) are turned over during a year. This denotes that Tata steel has better credit lending policies and is able to convert the debtors into cash more quickly than its competitors. Also Tata Steel has improved its turnover ratio over the five years. On the contrary SAIL has a poor turnover ratio and it has decreased during the five years which indicates that SAIL has liberal credit policy. While JSW maintains a constant and better debtors turnover ratio.

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CREDITORS TURNOVER RATIO

Table 35: CREDITOR'S TURNOVER RATIO

(in crores) PARTICULARS TATA STEEL JSW SAIL CREDITOR'S TURNOVER RATIO(days) 2010-2011 2009-2010 2008-2009 2007-2008 3.71 3.90 3.15 2.14 7.88 6.50 6.00 6.66 3.66 3.36 5.92 4.83 2006-2007 2.26 6.69 5.34

Graph 36: CREDITOR'S TURNOVER RATIO

CREDITORS TURNOVER RATIO

9 8 7 6 5 4 3 2 1 0 3.71 3.66 3.9 3.36 7.88 6.5 6 5.92 6.66 4.83 6.69 5.34 TATA STEEL JSW SAIL 3.15 2.14 2.26

2011

2008

2009

2008

2007

INTERPRETATION It indicates the speed with which the payments are made to the trade creditors. It establishes relationship between net credit annual purchases and average accounts payables. Accounts payables include trade creditors and bills payables. Tata Steel has a poor Creditors turnover Ratio as compared to its competitors. This indicates that Tata Steel has low credit worthiness but it utilizes the credit facilities given by its suppliers very well. Whereas SAIL has the highest credit turnover ratio over the five year period, which is a good sign and is more reliable for its suppliers.

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GROSS OPERATING CYCLE

Table 36: GROSS OPERATING CYCLE

(in crores) PARTICULARS TATA STEEL JSW SAIL GROSS OPERATING CYCLE(days) 2010-2011 2009-2010 2008-2009 2007-2008 116.49 121.82 111.23 129.75 72.44 68.40 69.57 77.39 228.95 260.86 217.52 233.74 2006-2007 130.04 74.10 243.11

Table 37: GROSS OPERATING CYCLE

300 250 228.95 200 150 100 50 0 116.49 72.44

GROSS OPERATING CYCLE

260.86 217.52 233.74 243.11 TATA STEEL JSW 121.82 68.4 129.75 111.23 69.57 77.39 74.1 130.04 SAIL

2011

2010

2009

2008

2007

INTERPRETATION The above data represents the comparative gross profit of the 3 companies. we can clearly see that the gross profit of SAIL is very high as compared to TATA STEEL and JINDAL and JINDAL has the lowest gross profit.

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NET OPERATING CYCLE

Table 36: NET OPERATING CYCLE

(in crores) PARTICULARS TATA STEEL JSW SAIL NET OPERATING CYCLE(days) 2010-2011 2009-2010 2008-2009 2007-2008 18.14 28.21 7.15 -40.43 18.07 6.51 -1.36 13.03 29.63 36.09 48.31 37.41 2006-2007 -31.39 23.21 51.92

Graph 37: NET OPERATING CYCLE

NET OPERATING CYCLE

60 48.31 40 20 0 -20 -31.39 -40 -60 -40.43 29.63 18.14 18.07 36.09 28.21 37.41 23.21 13.03 6.51 7.15 -1.36 TATA STEEL JSW SAIL 51.92

2011

2010

2009

2008

2007

INTERPRETATION Net operating cycle is determined by gross operating cycle. The shorter is the net operating cycle, the better it is for the organization. Tata steel is having the least net operating cycle among all, means it is also paying back to its creditors in maximum time period. Sail is having maximum net operating cycle means it is carrying out its work that is raw material conversion period, work in progress, finished goods and debtors conversion in maximum time period and thus keep large amount of cash to carry out its work.

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WORKING CAPITAL RATIOS

CURRENT RATIO
Table 37: CURRENT RATIO

(in crores)

c urrent rat io =CURRENT ASSET /CURRENT LIABILIT Y

PARTICULARS
TATA STEEL JSW SAIL
Graph 38: CURRENT RATIO

2011 1.64 1.01 2.2

2010 1.15 0.73 2.26

2009 1.12 0.61 2.02

2008 0.90 0.75 1.99

2007 1.19 1.09 1.86

2.50 2.2 2.00 1.50 1.00 0.50 0.00 1.64

CURRENT RATIO
2.26 2.02 1.99 1.86 TATA STEEL 1.15 0.73 1.12 0.61 1.19 1.09 JSW SAIL

1.01

0.90 0.75

2011

2010

2009

2008

2007

INTERPRETATION Among the three companies, SAIL seems to have the highest current ratios. This is because SAIL has very high current assets, as compared to its competitors . basically the inventories and cash and bank balances is the major reason for the high ratio of SAIL. Whereas Jindal and TATA STEEL maintain low cash and bank balances and also the inventory level is low.

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ACID TEST RATIO

Table 38: ACID TEST RATIO

(in crores)

ACID TEST RATIO

PARTICULARS
TA TA STEEL JSW SA IL
Graph 39: ACID TEST RATIO

2011 1.34 0.60 1.55

2010 0.88 0.39 1.75

2009 0.80 0.34 1.42

2008 0.59 0.37 1.47

2007 0.85 0.64 1.25

2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 0.60 0.39 0.34 0.88 0.80 0.59 0.37 1.55 1.34 1.75 1.42 1.47 1.25 0.85 0.64 TATA STEEL JSW SAIL

2011

2010

2009

2008

2007

INTERPRETATION In Acid test ratio, the inventories are deducted from the current assets. Although the inventories are not considered, SAIL continues to have higher ratio than TATA STEEL and Jindal because of the cash and bank balances of SAIL, which is much higher than the other 2 companies. This indicates that SAIL has superior liquidity position than others.

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ABSOLUTE QUICK RATIO

Table 39: ABSOLUTE QUICK RATIO

(in crores)

ABSOLUTE QUICK RATIO

PARTICULARS
TATA STEEL JSW SAIL

2011 0.65 0.21 1.00

2010 0.55 0.06 1.28

2009 0.54 0.06 1.06

2008 0.22 0.14 1.04

2007 2.08 0.16 0.88

Graph 40: ABSOLUTE QUICK RATIO

ABSOLUTE RATIO
2.50 2.08 TATA STEEL 1.50 1.28 1.00 1.00 0.65 0.50 0.21 0.00 0.55 0.06 1.06 1.04 0.88 0.54 0.06 0.22 0.14 0.16 JSW SAIL

2.00

2011

2010

2009

2008

2007

INTERPRETATION Absolute quick ratio is the ratio of cash and bank balances and short term securities marketable to current liabilities. Here, the ratio of TATA STEEL is very high in the year 2007, but falls greatly in the next year. This happens basically because of very heavy fall of cash and bank balance in the year 2008 and the years ahead. On the other hand , SAIL consistent raise in the ratio over the five years and even Jindals ratio increases in the five years but remains very low as compared to the competitors.

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WORKING CAPITAL TURNOVER RATIO

Table 40: WORKING CAPITAL TURNOVER RATIO

(in crores)

WORKING CAPITAL TURNOVER RATIO

PARTICULARS
TA TA STEEL JSW SA IL

2011 4.18 -22.29 2.01

2010 18.19 -8.81 1.82

2009 22.66 -4.79 5.96

2008 -28.03 -11.21 7.51

2007 17.17 43.00 3.41

Graph 41: WORKING CAPITAL TURNOVER RATIO

50.00 40.00 30.00 20.00 10.00 0.00 -10.00 -20.00 -30.00 -40.00

WORKING CAPITAL TURN OVER RATIO

43.00

18.19 4.18 12.01 -22.29 2 1.82 -8.81 3

22.66 5.96 -4.79 4 7.51 -11.21 -28.03 5

17.17 3.41

TATA STEEL JSW SAIL

2011

2010

2009

2008

2007

INTERPRETATION The ratio establishes a relation between average Net Working capital & Sales. This ratio indicates how effectively working capital is being utilized by the concern. In JSW Net working capital is negative because creditors are very high except in the year 2007, where net w.c is positive because creditors are less. In Tata Steel net w.c is negative in 2008 because loans and advances are less as compared to the other years.

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DEFENSIVE INTERVAL RATIO

Table 41: DEFENSIVE INTERVAL RATIO

(in crores)

DEFENSIVE INTERVAL RATIO

PARTICULARS
TATA STEEL JSW SAIL

2011 2010 2009 2008 2007 620.75 551.37 1099.95 1155.68 532.64 410.94 620.17 362.36 588.97 378.18 360.00 360.00 360.00 360.00 360.01

Graph 42: DEFENSIVE INTERVAL RATIO

1400.00 1200.00

DEFENSIVE INTERVAL RATIO

1155.68 TATA STEEL JSW 620.75 410.94 551.37 588.97 620.17 362.36 532.64 378.18 SAIL

1099.95 1000.00 800.00 600.00 400.00 200.00 0.00

2011

2010

2009

2008

2007

INTERPRETATION:
This ratio examines the liquidity position of a firm in relation to its ability to meet projected daily expenditure from operations. In other words the ratio measures the time span a firm can operate on present liquid assets. From the above graph we can see that SAIL has a very stable and low ratio . this is because, the daily projected cash requirement of SAIL is very high. TATA STEEL has higher demand of daily projected cash as compared to Jindal, but still maintains high ratio as it has high absolute liquid asset.

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TIME SERIES TREND ANALYSIS OF TATA STEEL YEARS 2007 2008 2009 2010 2011 Sum X 1 2 3 4 5 15 Y 10133.9 -7025 8714.3 13756.2 70289.1 109918.5 X2 1 4 9 16 25 55 Y2 102095929.21 49350625 75939024.49 189233038.44 494055757.81 5357776196 XY 10133.9 -14050 26142.9 55024.8 351445.5 406470

For a Linear Equation, Y = a + bX The set of normal equations are: Y = na + bX..(1) XY = aX + bX2 .(2) Substituting the table values in equation (1) and (2), we get: 109918.5 = 5a + 15b.(1) 406470 = 15a + 55b..(2) Solving the set of simultaneous equations by multiplying equation (1) by 3 and then subtracting it from equation (2), we get, B = 7671.45 Substituting this value of b in equation (1), we have: 109918.5 = 5a + 15*(7671.45) 109918.5 = 5a + 115071.75 5a = -5153 Therefore, a = -1030.65 Thus, the trend equation is Yc = -1030 + 7671.45X Yc stands for computed values of working capital based on the least squares equation in the form of Yc = a + bX, where the equation comes to Yc = -1030 + 7671.45X with origin at the year 2007 X unit = 1 year and Y unit = rupees in crore. Year Actual Indices W.C 2007 10133.9 100 2008 -7025 -69.32 2009 8714.3 85.99 2010 13756.2 135.74 2011 70289.1 693.6

Estimated W.C (Yc) 6640.8 8317.9 21983.7 29655.15 37326.6

Difference 3493.1 -1292.9 -13269.4 -15899.0 32962.5

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INTERPRETATION From the table we can see that the net working capital after a negative figure of -7025 in 2008 has increased considerably till 2011. In 2007 the decrease in working capital was mainly because the current assets in 2008 was far less than the current liabilities and his happened because there was a big decrease in sundry debtors in 2008 which decreased the current assets. The reductions were in the areas of Flat Products and Long products in the Steel division mainly due to continuous monitoring coupled with introduction of insurance-backed factoring facility. The average debtors in terms of number of days as on 31st March, 2008 were 12 days as compared to 14 days as on 31st March, 2007. But since 2009 the working capital started increasing on account of better performance. Although the working capital improved over the years till 2010 but the difference was negative on account of recovery which resulted in better performance. In 2011 the difference got positive because of expansion for various projects which resulted in the ROI of 17%.

TIME SERIES-TREND ANALYSIS NET OPERATING CYCLE-TATA STEEL YEARS 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 SUM X 1 2 3 4 5 15 Y -31.411 -40.409 7.203 28.266 18.198 -18.153 X2 1 4 9 16 25 55 Y2 986.6509 1632.887 51.88321 798.9668 331.1672 3801.555 XY -31.411 -80.818 21.609 113.064 90.99 113.434

FOR A LINEAR EQUATION, Y=a+bX The set of normal equations are Y = na + bX XY = aX + bX2 Substituting the table values in eq., we get -18.153=5a+15b (1) 113.434 = 15a +55b. (2) Solving the set of simultaneous equations by multiplying equation (1) by 3 and then subtracting it from equation (2), we get 167.893=10b Therefore, b=16.789 Substituting this value of b in equation (1), we have -18.153=5a+ (15*16.789) -18.153=5a+ 251.835 5a=-18.153- 251.835 5a=-269.988 Therefore, a=-53.9976 Thus, the trend equation is Yc=53.9976+16.789X Yc stands for computed values of Operating Cycle based on the least squares equation in the form of Yc = a + bX, where the equation comes to Yc = -1030 + 7671.45X with origin at the year 2007; X unit = 1 year and Y unit = rupees in crore 99 | P a g e

Year

Actual Operating cycle -31.411 -40.409 7.203 28.266 18.198

Indices

Estimated Operating Cycle 70.7866 87.576 104.3646 121.1536 137.9426

2007 2008 2009 2010 2011 INTERPRETATION

100 128.64 -22.931 -89.987 57.935

From the table we can see that the net operating cycle after a negative figure of -40.409 in 2008 has increased considerably till 2010. In 2007 the decrease in net operating cycle was mainly because the creditors conversion period is decreasing which in turn makes the operating cycle negative.

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FINDINGS AND RECOMMENDATIONS

FINDINGS
During the project I got lots of information regarding INVENTORY MANAGEMENT for steel division and that information put forward the project. Major types of inventory in TATA STEEL are Raw Materials, Work in Progress, Finished goods. TATA STEEL uses inventory management uses ABC Analysis and for Spare planning VED classification is used. TATA STEEL applied concept of VENDOR MANAGEMENT INVENTORY which helped to reduce the cost incurred in inventory. Finished and semi finished products produced and purchased by the company are carried at lower of cost and Net Realizable value. Work in progress is carried at lower of cost and Net Realizable value. TATA STEEL has transformed from traditional purchase department to modern procurement department. TATA STEEL does not follow EOQ methods. They calculate their Annual Requirement by other methods.

RECOMMENDATIONS
TATA STEEL could go for other techniques for inventory control. For example it follows ABC Analysis for inventory and VED for spare parts inventory; similarly it can go for other methods for raw material inventories, different for W.I.P and finished goods. Company should try to reduce the Raw material conversion period and should produce according to demand, so that the cost associated with it can be reduced. Companys average investment period is high as compared to its competitors. It should go for rapid sale to reduce blockage of cash in inventory.

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CONCLUSION
This project studies the inventory management of TATA STEEL, which is one of the most important aspects of any organization, as it deals in managing the entire stock of raw materials, stores and spares and finished and semi- finished goods . inventory management is a difficult task at TATA STEEL as it is a manufacturing company and needs huge stocks at all point of time to avoid lag time and delay in production. The inventory ratio is a key figure in financial management of TATA STEEL. It characterizes how much stocks are required at a point of time and and how much time does the stock takes to be converted into finished goods and sales. The core objective is to maintain the lowest inventory in order to reduce inventory holding cost. Further the increased inventory also locks up short term funds of the company. For that reason the directors of TATA STEEL set standards for each subsidiary which it is obliged to follow.

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BIBLIOGRAPHY

ANNUAL REPORTS
TATA STEEL JINDAL STEEL SAIL

BOOKS
Cost Accounting-By B.K.Mehta, SBPD publication. I.M.Pandey, 2007 Financial Management New Delhi, Vikas publishing House. Shashi k.Gupta & R.K.Sharma 2005, Management Accounting Principles and Practice. Inventory Management and Working Capital- By P.Gopal Krishnan. Principle of Operation Management-By Barry Render, Jay heizer.

WEBSITES
www.moneycontrol.com www.tatasteel.com www.jpsindainsteel.com www.ibef.org

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