ANURAG UNIVERSITY

Title of project:
“A PROJECT ON TATA STEEL COMPANY.”
Name of the Student: N. SRILEKHA
Course:MBA 1ST YEAR
Academic Year:2022-2024
Hall Ticket No:22MG201B47
Name of the Guide:P.KALPANA

Signature of student Signature of Guide

College Seal
 ANURAG UNIVERSITY
VENKATPUR,MEDCHAL,GHATKESAR.
TITLE OF THE PROJECT:
“A PROJECT ON TATA STEEL COMPANY’’
BY
S.NO: NAME OF THE STUDENT CLASS ROLL NO
1. N.SRILEKHA MBA 1ST YEAR 22MG201B47

UNDER THE SUPERVISION OF

P.KALPANA
COMPANY PROFILE
 ANURAG UNIVERSITY
JODIMETLA, HYDERABAD-TS.

DECLARATION
I hereby declare and certify that the Project Report Entitled
“A PROJECT ON TATA STEEL COMPANY.” Submitted to
the ANURAG UNIVERSITY, Telangana State, Hyderabad-
500036. By the student MS.N. SRILEKHA MBA 1ST YEAR,
English Medium and Mentor P. KALPANA, Anurag University,
Jodimetla, Hyderabad is a Bonafide Record of Research work
carried out by us during the Academic Year 2022-2023.

ACKNOWLEDGEMENT
We would like to thank the pepole who extended their immense
help to complete our pproject work titled

“A PROJECT ONTATA STEEL COMPANY”

We would like to express our sincere gratitude to the present
principal for giving us the opportunity to do this project
We would also like to thank our guide and lecturer. P. KALPANA for
guiding us throughout this project work and helping us out with his
valuable suggestion for this project
Finally we sincere thanks to our family and friends us time, support
and encouragement, without whose co-operation my team study
would have been in complete.
Name: Roll No:
N. Srilekha 22mg201b47

CERTIFICATION
This is to certify that the project report title “A PROJECT ON TATA
STEEL COMPANY” submitted in partial fulfilment for the award of
MBA, Autonomous University, Hyderabad was carried out by N.
Srilekha under our guidance. This has not been submitted to any
other University or Institution for the award of any MBA certificate.

Name and addresses of the Guide Signature of the guide

P. Kalpana
Anurag University
Jodimetla, Hyderabad
 INDEX
S.NO CONTENTS PAGE NO
1 INTRODUCTION 1-6
2 MARKETING 7-8
3 HUMAN 9-12
RESOURCES
4 FINANCE 13-15
5 FINDINGS, 16-19
SUGGESTIONS
AND
CONCLUSION
6 BIBLIOGRAPHY 20
7 APPENDICES 21-22

INDEX
 CONTENTS PAGE
NO
1-2
1.1 Introduction
1.2 Objectives 3

1.3 Scope of the study

1.4 Need for the study
1.5 Research
Methodology
1.6 Limitations
 CHAPTER-1
INTRODUCTION

1.1 Introduction
Tata Steel Limited (formerly Tata Iron and Steel Company Limited
(TISCO)) is an Indian multinational steel-making company
headquartered in Mumbai, Maharashtra, India, and a subsidiary of the
Tata Group.
It is one of the top steel producing companies globally with annual
crude steel deliveries of 27.5 million tonnes (in FY17), and the second
largest steel company in India (measured by domestic production) with
an annual capacity of 13 million tonnes after SAIL.
Tata Steel has manufacturing operations in 26 countries, including
Australia, China, India, the Netherlands, Singapore, Thailand and the
United Kingdom, and employs around 80,500 people. Its largest plant
located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the UK-
based steel maker Corus.
It was ranked 486th in the 2014 Fortune Global 500 ranking of the
world's biggest corporations. It was the seventh most valuable Indian
brand of 2013 as per Brand Finance.
Tata Steel is headquartered in Mumbai, Maharashtra, India and has its
marketing headquarters at the Tata Centre in Kolkata, West Bengal. It
has a presence in around 50 countries with manufacturing operations
in 26 countries including: India, Malaysia, Vietnam, Thailand, UAE, Ivory
Coast, Mozambique, South Africa, Australia, United Kingdom, The
Netherlands, France and Canada.

1
* Tata Steel primarily serves customers in the automotive,
construction, consumer goods, engineering, packaging, lifting and
excavating, energy and power, aerospace, shipbuilding, rail and
defence and security sectors.
*Tata Iron and Steel Company was founded by Jamshedji Tata and
established by Dorabji Tata on 26 August 1907, as part of his father
Jamshetji's Tata Group. By 1939 it operated the largest steel plant in
the British Empire. The company launched a major modernization and
expansion program in 1951. Later in 1958, the program was upgraded
to 2 million metric tonnes per annum (MTPA) project. By 1970, the
company employed around 40,000 people at Jamshedpur, with a
further 20,000 in the neighbouring coal mines. In 1971 and 1979, there
were unsuccessful attempts to nationalise the company. In 1990, it
started expansion plan and established its subsidiary Tata Inc. in New
York. The company changed its name from TISCO to Tata Steel in 2005.
* Tata Steel on Thursday, 12 February 2015 announced buying three
strip product services centres in Sweden, Finland and Norway from
SSAB to strengthen its offering in Nordic region. The company,
however, did not disclose value of the transactions. In September 2017,
ThyssenKrupp in Germany and Tata Steel announced plans to combine
their European steelmaking businesses. The deal will structure the
European assets as ThyssenKrupp Tata Steel, a 50-50 joint venture. The
announcement estimated that the company would be Europe’s second-
largest steelmaker.

2
*OBJECTIVES OF STUDY:
 The present study “A PROJECT ON TATA STEEL COMPANY.”
Has been designed to achieve the following objectives:-
1. To study the financial position of Tata steel and Jindal steel.
2. in respect of above objective we are trying to judge the
financial performance of Tata steel and Jindal steel.

*SCOPE OF THE STUDY:

The present study is confined to the leading units in
steel industry namely TATA STEEL COMPANY. The study covers a
period of five years from 2013-14 to 2016-17.
This period is enough to cover both the short and medium terms
fluctuations and to set reliability.

NEEDS FOR THE STUDY:

 To understand about Tata Steels company program.
 To know the benefits about Tata Steels Company.

RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research
is done scientifically. So, the research methodology not only talks
about the research methods but also considers the logic behind the
method used in the context of the research study.

1.Research Design
Descriptive research is used in this study because it will ensure the minimization of bias and
maximization of reliability of data collected. The researcher had to use fact and information already
available through financial statements of earlier years and analyse these to make critical evaluation
of the available material. Hence by making the type of the research conducted to be both
Descriptive and Analytical in nature.

From the study, the type of data to be collected and the procedure to be used for this purpose were
decided.

2. Data Collection
The required data for the study are basically secondary in nature and the data are collected from
the audited reports of the company.

A) Primary Data: Primary data are those data, which is originally collected afresh. In this project,
Websites and Books has been used for gathering required information.

B) Sources of Data: The sources of data are from the annual reports of the company from the year
2013-2014 to 2016-2017.

3. Methods of Data Analysis

a) Analytical Tool Applied

The study employs the following analytical tools:

The data collected were edited, classified and tabulated for analysis. The analytical tools used in this
study.

 Comparative Statement

 Graph

 Trend Percentage

 Ratio Analysis

5
LIMITATIONS:
CHAPTER 2
MARKETING

7
 MARKETING AREAS, PRODUCTS, PRODUCE, SERVICES PROVIDED BY THE
COMPANY.

Tata Steel’s products include hot and cold rolled coils and sheets,
galvanised sheets, tubes, wire rods, constructions re-bars, rings and
bearings. The products are targeted at automobiles, white goods,
construction and infrastructure markets. In an effort to de-
commoditise steel, the company has introduced brands like
 Tata Wiron (wire rods for farming and fencing segment),
 Tata Steelium (cold rolled steel for auto ancillaries and the general
engineering segments),
 Tata Shaktee (corrugated galvanised sheets for rural house builder
segments),
 Tata Tiscon (re-bars for individual house-builder semi-urban
segment)
 Tata Pipes (pipes for individual house builder and farming
segments),
 Tata Bearings (bearings for Original equipment manufacturer and
replacement market) and
 Tata Agrico (agricultural equipment for farming and construction
segment).
The company has focused on increasing the sale of its branded
products and the sale of its branded products and the sales of these
products as a proportion of its total sales has shown a constant
increase over the last few years.

8
CHAPTER-3
HR

9
 HR POLICIES, RECRUITMENT PROCEDURE, PAY ROLLS,
APPRECIATION PROCEDURE, EMPLOYEE BENEFITS.

Jamsetji Nusserwanji Tata (1839 – 1904)

The foundation of what would grow to become the Tata group was laid in 1868
by Jamsetji Nusserwanji Tata – then a 29-year-old who had learned the ropes
of business while working in his father’s banking firm – when he established a
trading company in Bombay.
A visionary entrepreneur, an avowed nationalist and a committed
philanthropist, Jamsetji Tata helped pave the path to industrialisation in India
by seeding pioneering businesses in sectors such as steel, energy, textiles and
hospitality.

10
 RATAN TATA (1937)
The beginning of the 1990s ushered in plenty of change in Indian business.
Economic reforms opened up many sectors, signalling increased competition
and the arrival of foreign companies. JRD Tata’s death, in 1993, symbolised the
end of an era in more ways than one.
Ratan Tata, who took over as chairman in 1991, guided the Tata group in a
fast-changing business environment where old rules did not apply and new
realities were taking hold.
Mr Tata retired as Chairman of Tata Sons on December 28, 2012.

11
 NATARAJAN CHANDRASEKARAN (1963)
Natarajan Chandrasekaran (53) is Chairman of the board of Tata Sons, the
holding company and promoter of more than 100 Tata operating companies
with aggregate annual revenues of more than US $100 billion. He joined the
board of Tata Sons in October 2016 and was appointed Chairman in January
2017.
Chandra also chairs the boards of several group operating companies,
including Tata Steel, Tata Motors, Tata Power, Indian Hotels and Tata
Consultancy Services (TCS) — of which he was chief executive from 2009-17.
His appointment as chairman followed a 30-year business career at TCS, which
he joined from university. Chandra rose through the ranks at TCS to become
CEO and managing director of the leading global IT solutions and consulting
firm.

12
CHAPTER-4
FINANCE

13
RATIO ANALYSIS AND INFERENCES WITH TABLES AND
GRAPHS:
RATIO
A ratio is a number expressed in terms of another. It is a fraction whose numerator is the
antecedent and denominator is the consequent. A ratio indicates the quantitative
relationship between two figures. It may be expressed in different forms like –
1. Pure Ratio
2. Rates
3. Percentage

FINANCIAL RATIO
It is a ratio between two accounting figures or data expressing the relationship between the
two. It is an expression of the relation between different relevant accounting variables.
The Financial statements of a business comprise of (1) the Revenue Statement or the
Profit & Loss Account and (2) The Balance Sheet. These include a mass of figures which
make it difficult to deduce any inference or decision. An accounting ratio is used to gauge
the financial solvency and profitability of the business. It is computed from the basic
financial statements periodically published by the business and it highlights in arithmetical
terms, the relationships that exist between various items from the financial statements.

FINANCIAL RATIO ANALYSIS

It is an analytical tool used for financial analysis. It is a process of determination and
interpretation of the numerical relationships between the financial data published by
business in periodical statement. It aims at facilitating comparisons with the positions of
other business firms as well as of the same business firm over a number of financial periods.
It is done mainly for the following groups:
1. The Management – which, for internal use, wants to ascertain the profitability and
solvency of the business. The extended areas over which the Management becomes
interested are over or under-trading, over or under-investments, over or under-
capitalisation and useful credit policy.
2. The outsiders who are interested in the solvency, liquidity and profitability of a business.
Outsiders include creditors, debenture holders, employees, Government and useful credit
policy.

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INFERENCES WITH TABLES AND GRAPHS:
A COMPARATIVE FINANCIAL PERFORMANCE ANALYSIS OF TATA STEEL OF
RATIO
1) Gross Profit Ratio = 𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡/ 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠 × 100

Gross profit = Sales – Material Consumed – Manufacturing Expense

TATA STEEL:
YEAR 2021 2020 2019 2018 2017
GROSS 30,311.98 22,069.54 25,124,13 26,452.33 23,672.23
PROFIT
NET SALES 47,993.02 38,210.34 41,785 41,711.03 38,199.43

GROSS 63.16% 57.76% 60.13% 63.42% 61.97%

PROFIT
RATO

GROSS PROFIT RATIO

64.00%
63.00%
62.00%
61.00%
60.00%
59.00%
58.00%
57.00%
56.00%
55.00%
54.00%
2021 2020 2019 2018 2017

TATA STEELS

15
 CHAPTER-5
FINDINGS, SUGGESTIONS AND
CONCLUSION

16
FINDINGS:

 99% of respondents know about TATA STEELS.

 More than 50% of respondents came to know about TATA
STEELS through friends, family, and relatives.
 It is one of the TOP Steel Company.
 TATA STEELS has manufacturing operations in 26 countries.
 It was founded by Jamshedji’s Tata Group.
 It is a multi-national company.
 It is one of the leading steel companies of India.
 Tata Steel continues to grow through various companies in
different operations.
 TATA STEEL Limited, with a consolidated turnover of US
$32,836 million in the financial year ending march 31,2022, is
the 10th largest steel producer in the world with an annual
crude steel production capacity of 34 MTPA (million tone per
annum).

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SUGGESTIONS:

 All operational and related activities should be performed

efficiently and effectively.

 Both Company have to utilize their capital assets in a proper way

that they have to purchase less capital assets in coming year.

 The stability of the Tata Steel Ltd has declined from base year 2017
to current year 2020.

 Tata Steel Ltd have sound solvency position but the company have
to avail on the benefit of trading on equity and has to use cheaper
debt capital.

 The government intervention in promoting ‘Make in India’ in public

procurement has resulted in Indian companies garnering over Rs 50
billion in projects.

 One of the beneficiaries is TATA Steel. It had earlier been kept out
of procurement for rails, but is likely to receive 20 per cent of the
tendered volume under the new policy. The size of the tender is
estimated to be around Rs 30 billion, of which TATA may receive
orders worth Rs 6 billion.

18
CONCLUSION:

*When Corus in its fold, Tata Steel can confidently target

becoming one of the top-3 steel makers globally by 2019.The
company would have an aggregated capacity of close to 6
billion tonnes per annum, if all the planned Greenfield
capacities go on stream by then.
*Gross profit are increasing which indicates that firm’s efficient
management in manufacturing and trading operations.
*Return on long term fund are decreased during period which
indicates the investments made by the debenture holders and
long term debt is used in the business.

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BIBLIOGRAPHY:
Following books are referred for carrying out the project:-

1. Amitabha Basu, Financial Accounts, Volume – 3, Edition - August2017, accounting ratios

for financial statement analysis, page – 829 – 835.

2. Annual reports of Tata Steel.

Following websites are referred:-

1. https://www.ibef.org/industry/steel.aspx

2. http://www.tatasteel.com/

3. http://www.jindalsteelpower.com/

4. https://www.wikipedia.org/

5. https://money.rediff.com/index.html

6. http://www.business-standard.com/article/companies/make-inindia-in-public-procurement-
companies-bag-rs-50-bn-govt-contracts-118040301360_1.html

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 APPENDICES: BALANCE SHEET OF TATA STEEL COMPANY.

2021 2020 2019 2018 2017 2016

SOURCE OF FUNDS

OWNER FUNDS

EQUITY SHARE 915 91.49 91.49 91.49 91.49 91.50

SHARE MONEY
- - - - - -
SHARE CAPITAL
- - - - - -
RESERVE & SURPLUS 21,674.70 22,974.18 12,419.72 12,972.84 12,972.84 12,254.59
LOAN FUNDS

SECURED LOAN 18,860.54 23,915.04 17,705.89 12,707.31 12,915.05 11,57.42

UNSECURED LOAN 5,302.80 8,409.16 9,959.60 9,503.98 7,923.52
-
TOTAL 46,753.04 46,980.71 38,626.26 35,731.24 26,731.24 21,427.03
USES OF FUNDS

FIXED ASSETS

GROSS BLOCK 45,678.07 45,144.21 34,763.80 24,150.58 23,199.04 18,821.38

LESS: REVALUATION
- - - - - -
LESS: DEPRECIATION 4,202.19 2,120.90 7,548.72 5,891.25 5,336.89 4,665.19
NET BLOCK 41,475.88 43,023.31 27,215.08 29,678.08 18,259.33 14,156.19
CAPITAL WORK-IN- 7,529.37 5,684.88 3,563.12 4,864.42 11,663.17 11,483.94
PROGRESS
INVESTMENTS 1,485.25 1,476.94 2,486.96 3,589.97 1,350.52 1,330.71
NET CURRENT ASSETS

LOANS & ADVANCES 9,626.31 10,410.62 12,905.07 13,409.8 7,960.92 14,876.64

LIABILITIES & 14,187.27 13,616.04 7,543.97 10,418.42 7,960.92 6,576.98
PROVISIONS
TOTAL NET CURRENT -4,560.96 -3,205.42 5,361.10 4,458.22 4,878.16 5,283.34
ASSETS
MISCELLANEOUS
- - - - - -
EXPENSES
TOTAL 45,929.54 46,980.71 38,626.26 35,731.24 31,849.01 33,279.08
NOTES:

BOOK VALUE OF 243.23 232.84 1,828.05 1,691.61 1,330.72 323.43

UNQUOTED
INVESTMENTS
CONTINGENT 13,849.85 15,629.63 15,057.15 15,349.60 13,356.75 14,809.32
LIABILITES
EQUITY SHARE 9,150.24 9,149.04 9,149.04 9,148.86 9,348.86 9,248.48
OUTSTANDING

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