TABLE OF CONTENT

S.NO. CHAPTER PAGE NO

1 CHAPTER 1 2-7
INTRODUCTION

2 CHAPTER 2 8-15
ABOUT THE COMPANY

3 CHAPTER 3 16-18
RESEARCH METHODOLOGY

4 CHAPTER 4 19-25
ANALYSIS AND FINDINGS

5 CHAPTER 5 26-27
CONCLUSION, RECOMMENDATION AND
BIBLIOGRAPHY

6 ANNEXURE 28-29

1
CHAPTER 1

2
 INTRODUCTION

Financial statements include information about the financial situation of a certain company.
In order to make important financial decisions, business owners, analysts, and numerous
other stakeholders further examine, compare, and interpret this financial information.
However, specific tools and techniques of financial statement analysis are used to understand
such data. Accounting ratios are one such method for analysing financial statements.

Ratio analysis applications

1. Comparison
Ratio analysis can be used, among other things, to assess a company's position in the market
by comparing its financial performance to that of other companies in the same sector.
Management can assess its competitive advantages, strengths, and weaknesses by obtaining
financial ratios from well-known competitors and comparing them to the company's own
ratios to detect market gaps. The management can then make decisions that are intended to
strengthen the position of the company in the market using the information.

2. Trend line
Ratios can be used by businesses to check for trends in their financial performance.
Established businesses gather information from the financial statements across many
reporting periods. In addition to identifying any anticipated financial turbulence that would
be impossible to predict using ratios for a single reporting period, the trend observed can be
utilised to forecast the direction of future financial performance.
3. Operational efficiency

Financial ratio analysis is another tool that a company's management can use to gauge how
well assets and liabilities are managed. Ineffective use of resources like cars, land, and
buildings leads to excessive costs that need to be cut. Financial ratios can also be used to
assess whether financial resources are being used too much or too little.

➢ Types of Ratio Analysis

1. Liquidity Ratios

2. Profitability Ratios
3. Solvency Ratios
4. Turnover Ratios

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• Liquidity Ratios: -
This kind of ratio aids in determining a company's capacity to meet its short-term debt
obligations. A greater liquidity ratio indicates that the company has significant financial
reserves.
The various liquidity ratios include: -
1. Current Ratio: The current ratio compares a company's current assets to its current
liabilities. The current ratio is used to determine an organization's ability to meet its debt
commitments over the next 12 months based on its liquidity. A higher current ratio will show
that the company can pay off its short-term debt commitments with ease.
Current ratio = current assets/current liability
2. Quick Ratio: The quick ratio is used to determine information about a company's capacity
to pay off its current creditors immediately.
The following formula is used to determine a quick ratio:

Quick Ratio = (Cash and Cash Equivalents + Marketable Securities + Accounts Receivables) /
Current Liabilities

• Profitability Ratios:
This kind of ratio aids in determining a company's capacity for generating adequate earnings.
There are several different profitability ratios.
• Gross Profit Ratios: Ratios of gross profit After making the required COGS, or cost of goods
sold, adjustments, gross profit ratios are calculated to represent the operating earnings of an
organisation.
The gross profit ratio is calculated using the following formula:
Gross Profit Ratio = (Gross Profit / Net Sales) * 100

• Net Profit Ratio: After removing both cash and non-cash expenses, net profit ratios are
computed to measure an organization's total profitability.
The following formula is used to calculate the net profit ratio:
Net Profit Ratio = (Net Profit / Net Sales) * 100
• Operating Profit Ratio: The operating profit ratio is used to assess a company's stability and
ability to pay off all of its short- and long-term debt obligations.
The operating profit ratio is calculated using the following formula:
Operating Profit Ratio = (Earnings Before Interest and Taxes / Net Sales) * 100

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• Return on Capital Employed (ROCE): Return on investment Employed is used to calculate an
organization's profitability in relation to the capital invested in the business.
The formula used for the calculation of ROCE is:
ROCE = Earnings Before Interest and Taxes / Capital Employed
• Solvency Ratios: -

Solvency ratios are a crucial part of the financial analysis that determines if a firm has enough
cash flow to handle its upcoming debt commitments.
Leverage ratios are another name for solvency ratios. It is thought that if a business has a low
solvency ratio, it is more likely to have trouble meeting its debt obligations and fail on debt
repayment.
The many solvency ratio types include: -
1. Debt to equity ratio: -
One of the most popular debt solvency measures is debt to equity. The D/E ratio is another
way to display it. The debt to equity ratio is derived by dividing the total liabilities of a
corporation by the equity held by shareholders. The balance sheet of the company's financial
statements is where these values are found.
Debt to equity ratio = Long term debt / shareholder’s funds

Or

Debt to equity ratio = total liabilities / shareholders’ equity

2. Proprietary Ratio or Equity Ratio: -

Equity ratio is another name for proprietary ratios. It establishes a connection between the
owner's finances and the capital or net assets.

It is written as
Equity Ratio = Shareholder’s funds / Capital or Shareholder’s funds / Total Assets

3. Interest Coverage Ratio: -

The company's ability to pay interest on the outstanding debt commitments is assessed using
the interest coverage ratio. It is computed by subtracting the interest payment due on debts
for the accounting period from the company's EBIT (Earnings before interest and taxes).

It is displayed as

Interest coverage ratio = EBIT / interest on long term debt

Where EBIT = Earnings before interest and taxes or Net Profit before interest and tax.

5
4. Debt Ratio:-
The debt ratio is a financial statistic that is used to assess the financial leverage of an
organisation.
It is determined by dividing the total liabilities by the total capital. The riskier the company is,
the bigger the debt ratio.
Bank loans, bonds due, notes due, and other long-term obligations are among them.

A debt-to-income ratio is shown as

Debt Ratio = Long Term Debt / Capital or Debt Ratio = Long Term Debt / Net Assets
• Turnover Ratios:-
The turnover ratio is the formula used to determine how many units of any asset are used by
a company to produce revenue from sales. It is the relationship between a company's assets
and the income produced by them. To be more specific, the efficiency ratio measures how
well the business uses various assets to derive profits from them (both individually and
collectively). A larger ratio is thought to be preferable because it would show that the business
is making the best use of its resources to generate income.

Different Turnover Ratios and Their Formulas

1. Capital Employed Turnover Ratio:-
It shows the relationship between a company's invested capital and the sales or income the
company makes from it. With the help of this ratio, one may determine whether or not capital
has been spent appropriately to generate revenue.
Capital employed turnover Ratio = Sales / Capital Employed

2. Total Asset Turnover Ratio:-

It is a ratio that establishes the relationship between a company's total assets and sales. It
evaluates how effectively all of the company's resources are used to generate income.
Total Asset Turnover Ratio = Sales (Net Sales) / Total Assets of the Company

3. Debtors Turnover Ratio:-

It is the ratio that determines how quickly the debtors' or credit sales' sum is converted to
cash. Since it compares credit sales to the typical debtors over the course of a year, it is often
referred to as the receivables turnover ratio.
Debtors Turnover Ratio = Net Credit Sales / Average Account Receivables

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4. Fixed Asset Turnover Ratio:-
This ratio gauges the amount of revenue created by the efficient churning of the company's
fixed assets. A company's fixed assets play a major role in generating revenue. Therefore, if
done properly, optimising the use of fixed assets enhances sales. The recipe for
Fixed Asset Turnover Ratio = Sales or Net Sales / Fixed Assets

5. Inventory Turnover Ratio:-

It is also known as the stock turnover ratio, and it gauges how well a company uses its
inventories by counting the number of sales it generates from its stock.
Inventory Turnover Ratio = Cost of Goods Sold / Average Stock
Or

Inventory Turnover Ratio= Sales / Closing Inventory

7
CHAPTER 2

8
This Photo by Unknown Author is licensed under CC BY-NC

COMPANY
TATA STEEL
9
About The Company
With offices in Mumbai, Maharashtra, and Jamshedpur, Jharkhand, Tata Steel Limited is a
global Indian steel manufacturer. It belongs to the Tata Organisation.
Tata Steel, formerly known as Tata Iron and Steel Company Limited (TISCO), is one of the major
producers of steel in the world, with an annual capacity of 34 million tonnes of crude steel.
With activities and a global commercial presence, it is one of the most geographically
diversified steel producers in the world.
History:-
Origins and Early Expansion:
Jamsetji Nusserwanji Tata and Sir Dorabji Tata created the Tata Iron and Steel Company
(TISCO) on August 26, 1907. As a division of Jamsetji's Tata Group, TISCO began producing pig
iron in 1911 and steel in 1912.[14][15][16] On February 16th, 1912, a steel ingot was produced
for the first time. The company advanced quickly throughout the First World War (1914–
1918).
The Tinplate Company of India Ltd. (TCIL) was established in 1920 as a joint venture to produce
tinplate by The Tata Iron & Steel Company and the then-Burmah Shell. In India, TCIL, currently
known as Tata Tinplate, commands a 70% market dominance.
It ran the biggest steel mill in the British Empire by 1939. In 1951, the business began a
significant modernization and growth programme. The project was then enlarged to a 2
million metric tonnes per annum (MTPA) plant in 1958. Around 40,000 people were employed
by the company in Jamshedpur by 1970, while an additional 20,000 worked in the nearby coal
mines.
Tata Steel led the Tata Group in terms of profitability in November 2021.
Expansion and Acquisition
NatSteel in 2004: For a total of $486.4 million in cash, Tata Steel has agreed to purchase
NatSteel's steel-making activities in Singapore.[21] NatSteel had a $1.4 billion in revenue and
a $47 million in profit before taxes at the end of 2003. The company would manage NatSteel's
steel operations through a fully owned subsidiary called Natsteel Asia Pte Ltd.
Millennium Steel in 2005: For a total of $130 million, Tata Steel purchased the bulk of
Millennium Steel, a Thai-based steel producer. It offered to pay 1.13 baht per share for an
additional 25% of the shares of other owners in exchange for the 40% stake it acquired from
Siam Cement for US$73 million. Tata Steel Thailand, formerly known as Millennium Steel, has
taken the former name and is based in Bangkok. It owned over 68% of the purchased
company's shares as of March 31, 201

10
Corus in 2006: In a contract inked with the Anglo-Dutch corporation Corus, Tata Steel agreed
to purchase a 100% stake for £4.3 billion ($8.1 billion) or 455 pence per share. Corus was the
target of a counter bid from the Brazilian steelmaker Companhia Siderrgica Nacional (CSN) on
November 19, 2006, valued at £4.5 billion. Tata preemptively increased their bid on December
11 to 500 pence per share, but CSN's offer of 515 pence per share, valued at £4.9 billion, beat
it by hours. The Corus board swiftly advised its shareholders to accept both of the amended
proposals. Tata Steel successfully acquired Corus on January 31, 2007, after making an offer
of 608 pence per share, valued at £6.7 billion ($12 billion).
Tayo Rolls in 2008: Formerly known as Tata-Yodogawa Limited, this Indian corporation based
in Jamshedpur manufactures and processes metal. It was established in 1968 as a joint
venture between Tata Steel and Yodogawa Steels, which has its headquarters in Japan. The
company issued a rights offering in 2008, but only around 50% of its total value, or Rs 60 crore,
was subscribed. As a result of the promoters buying them due to undersubscription, Tayo Rolls
became a Tata Steel subsidiary. Tayo Rolls is 55.24% owned by Tata Steel.
Bhushan Steel in 2018: The entire business was acquired by Tata Steel in 2017–18 after the
former company's insolvency case was filed under IBC on July 26, 2017. The winning bidder
was Tata Steel, which through its wholly owned subsidiary Bamnipal Steel Ltd. acquired the
business. Tata Steel BSL is the new name of the business. Bamnipal Steel Ltd. and Tata Steel
BSL were later combined by Tata Steel in 2021, becoming the latter one of Tata Steel's direct
subsidiaries (72.6%).
Nilachala Ispat Nigam Ltd in 2022: Tata Steel acquired a controlling interest in NINL through
its wholly owned subsidiary, Tata Steel Long Products (TSLP). For 12,100 crore (US$1.6 billion),
it defeated JSW Steel and Jindal Steel to acquire Neelachal Ispat Nigam Ltd (NINL), which is
situated in Odisha.
Board Of Directors:-
As per July 2022

• Mr.N Chandrasekaran : - Chairman & Non-Exe.Director

• Mr.Ratan N Tata : - Chairman Emeritus
• Mr.Koushik Chatterjee : - Executive Director & CFO
• Mr.O P Bhatt : - Independent Director
• Mr.Deepak Kapoor : - Independent Director

• MS. Mallika Srinivasan : - Independent Director

• Mr. Farida Khambata : - Independent Director

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• Mr.V K Sharma : - Independent Director
• Mr.David W Crane : - Independent Director
• Mr.T V Narendran : - Managing Director & CEO

• Mr.Saurabh Agrawal : - Non Executive Director

• Mr.Noel Naval Tata : - Non Executive Vice Chairman
Affiliates & Subsidiaries: -
1. ABJA Investment Co. Pte Ltd.
2. Adityapur Toll Bridge Company Limited

3. Tata Steel Special Economic Zone Limited

4. The Indian Steel & Wire Products Ltd.
5. Tata Steel Utilities and Infrastructure Services Limited (Formerly Jamshedpur Utilities &
Services Company Limited)
6. Haldia Water Management Limited
7. Kalimati Global Shared Services Limited
8. Mohar Export Services Pvt. Ltd

9. NatSteel Asia Pte. Ltd.

10. TS Asia (Hong Kong) Ltd.
Future plans
Tata Steel intends to expand its production capacity by a roughly 50:50 ratio of greenfield
expansions and acquisitions by 2015 in order to reach its goal of 100 million tonnes of annual
manufacturing capacity. 21.4 million tonnes of additional capacity have already been added
through overseas acquisitions, including Corus (18.2 million tonnes), NatSteel (2 million
tonnes), and Millennium Steel (1.2 million tonnes). Through acquisitions, Tata intends to
increase its capacity by an additional 29 million tonnes.
Tata Steel plans to expand many greenfield steel plants, including:
1. A facility in Kalinganagar, Odisha, India, with an annual capacity of 6 million tonnes;
2. an increase in its plant's annual capacity from 6.8 million to 10 million tonnes in
Jharkhand, India;
3. A facility in Chhattisgarh, India, with a capacity of 5 million tonnes per year (Tata Steel
and the Chhattisgarh government signed a memorandum of understanding in 2005;
tribal people are strongly protesting the plant);

12
 4. An Iranian facility with a 3 million tonne annual capacity.
5. A factory in Bangladesh with a capacity of 2.4 million tonnes per year;
6. A plant in Vietnam with a capacity of 10.5 million tonnes per year (feasibility studies
are in progress); and
7. A plant in Haveri, Karnataka, with a capacity of 6 million tonnes per year.
8. Purchasing Neelachal Ispat Nigam Ltd. in India's Odisha

Tata Steel’s Product Strategy

This Photo by Unknown Author is licensed under CC BY-SA-NC

13
Corus in the Netherlands and the United Kingdom. The Product Strategy includes each of
these goods.
The finished and semi-finished goods as well as lengthy products such wire rods and bars are
among Tata Steel's offerings. They have expanded their product line to include bearings,
precision tubes, locomotive parts and a variety of ores like ferro-manganese, manganese and
chrome. Contrarily, Corus, a Tata Steel purchase, specialises in coated strip products in coil
and sheet form. This demonstrates the broad range of items Tata Steel has to offer.
Price/Pricing Strategy:
Any product's pricing is crucial since it affects a variety of factors, including demand, product
favorability, and many more. The purchasing power, production, availability of materials, level
of competition, and profit potential are other factors that are taken into account by the
businesses.
Tata Steel has always made an effort to keep its prices low, which has been advantageous for
them.
Tata Steel has access to the newest technologies, allowing them to maintain production on
the lower side and maintain their standards as well. The Company also purchases its raw
materials from the local regions as well as global sources, which has given the firm plenty of
opportunities recently. They have several ore mines.

Location & Distribution Plan:

Tata Steel is a global company with operations in fifty different nations.
world. While its marketing headquarters are in Kolkata, West Bengal, its corporate offices are
in Mumbai, Maharashtra. United Arab Emirates, India, France, and
Twenty-six countries, including Malaysia, Vietnam, the UK, Canada, Thailand, Singapore, the
Netherlands, China, and Australia, are home to Tata Steel's manufacturing facilities. The
company's main production facility is in Jamshedpur, Jharkhand, with a few others in Orissa,
Maharashtra, Indore and Pithampur in Madhya Pradesh, and Kharagpur in West Bengal. The
business runs product service centres in Norway, Finland, and Sweden in addition to its New
York subsidiary. Around 80,500 people are employed by Tata Steel's robust and extensive
distribution network, which includes service centres, sales offices, and direct sales channels.
Promotion and Advocacy Plan:

In B2B (also known as Business to Business) dealings, Tata Steel is a significant player. It has
no tools for communicating with customers.

14
Tata Steel has been effectively marketing its goods so that consumers are made aware of
them. It has started running some adverts in an effort to please its audience. For instance,
#Apnokeliyeaagobadho attempted to evoke positive feelings in its clients towards the Covid-
19 Warriors by focusing on their sentiments. They used slogans like "Customer First-Har Haal
mein" in their advertisements, which is another excellent example. Posters and outdoor
advertising were Tata Steel's primary promotional methods. TV commercials were used as a
vehicle for messages to reach happy customers.
Tata Steel’s Competitor Analysis

Currently, firms like Essar Steel, Jindal Steel, Power, and VISA Steel compete with Tata Steel.
Tata Steel has always maintained its position in the steel manufacturing sector. The
competition has yet to outperform the standards and high-quality goods, nevertheless.
consists of roughly.
Let's discuss the financial component in order to make a more accurate comparison. Tata Steel
generated an estimated 1.6 trillion rupees in income in FY 2018–19, while Jindal Steel and
Power generated about 370.1 billion rupees.

15
CHAPTER 3

16
Research Methodology
Introduction To Study:
A 34 million tonnes per annum (MTPA) annual capacity for steel production places Tata Steel
Group among the top global steel producers.
• Since 2016, TSL has consistently ranked among the top 10 steel companies in the DJSI
Corporate Sustainability Assessment, making it one of the most geographically diversified
steel producers in the world. TSL has been a member of the DJSI Emerging Markets Index since
2012.
• The data is divided into two categories for the purposes of the research, namely primary
and secondary data. Secondary data refers to information that is not included in primary
information. The current study is based on secondary data that may be found in a variety of
books, journals, articles, research papers, and online sources, among other places. Analysis of
TATA STEEL's financial performance for the entire year is one of the primary goals of this study.
Research Plan:
We think that this study would help us recognise that TATA STEEL has performed well in India.
The details provided below will explain how the study was carried out and the type of research
that was done.
Understanding TATA Steel's performance in relation to recent financial performance in India is
the research problem.
Research Objectives:-
Simplify accounting information is one of the research's main goals.

• Establish liquidity, also known as short- and long-term solvency. The ability of the business
to meet its short-term financial obligations is known as short-term solvency.

In contrast, long-term solvency refers to an organization's capacity to meet its long-term debt
obligations.

• Evaluate the company's operational effectiveness.

• Examine the company's profitability.
• Assistance with comparative analyses, including intra- and inter-firm comparisons
Purpose Objectives:
The goal of this study was to compare growth through time and determine how TATA STEEL
performed during that time.

17
Goals of the Study:
Ratio analysis is the study or analysis of the line items included in the company's financial
statements. It can be used to evaluate a number of aspects of a business, including
profitability, liquidity, solvency, and operational effectiveness.
Purpose of Study:
The purpose of this study is to learn about the financial standing of the companies and to
inform the online marketing industry of the amount of earnings they generated throughout
the year.
Descriptive analysis:
This research is utilised to thoroughly describe solutions to research challenges. Typically, the
solutions take the form of precise percentages and numbers. Even though this research can
provide some answers, it is unable to identify the root cause of a problem. The independent
and dependent variables are identified by descriptive research, which also explains how the
two are related. Statistical research is another name for descriptive research.
We employed a questionnaire survey to gather information about the population under study.
It assists in gathering data that will be used to address the issues raised by the research.
Data Collection Method:-

Secondary Data:
Secondary data are those that have previously been gathered by another party. In contrast to
main data, secondary data are information that is easily accessible and is required for a
particular study or research. Secondary data have been gathered for this particular study from
a variety of sources. The main secondary data sources used in the current study's secondary
data collection are listed below.
• A number of websites;
• Articles in newspapers;
• Information on showroom sales;
• A number of marketing journals.

Data Analysis:
The whole financial statement of TATA STEEL was retrieved, and the results were then collated.
The financial health and market value of the outcomes were examined. To have real-time
visibility into the company's financial health, it includes analysing past data.Information about
sales, purchases, and consumers is included in these data sets.

18
CHAPTER 4

19
Financial statement of TATA STEEL [2019-20, 2020-21]

20
21
 Ratio analysis of TATA STEEL

1. Liquidity ratios :-

 The current ratio of TATA Steel in 2019-21 is: -

 TATA Steel standalone: - 0.68

 TATA Steel group: - 1.31

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  The current ratio of TATA Steel in 2020-21 is: -

 TATA Steel standalone: - 0.76

 TATA Steel group: - 1.44

2. Profitability ratios: -

➢ The gross profit ratio of TATA Steel in 2019-21 is: -

 TATA Steel standalone: - 1.07%

 TATA Steel group:- 1.40%

➢ The gross profit ratio of TATA Steel in 2020-21 is: -

 TATA Steel standalone: - 1.12%

 TATA Steel group:- 1.38%

➢ The net profit ratio of TATA Steel in 2019-21 is: -

 TATA Steel standalone: - 7.48%

 TATA Steel group:- 1.18%

➢ The net profit ratio of TATA Steel in 2020-21 is: -

 TATA Steel standalone: - 11.38%

 TATA Steel group:- 5.79%

➢ The operating profit ratio of TATA Steel in 2019-21 is: -

 TATA Steel standalone: - 18.25%

 TATA Steel group:- 7.48%

➢ The operating profit ratio of TATA Steel in 2020-21 is: -

 TATA Steel standalone: - 22.44%

 TATA Steel group:- 14.50%

➢ The ROCE ratio of TATA Steel in 2019-21 is: -

 TATA Steel standalone: - 5.57%

 TATA Steel group:- 0.10%

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 ➢ The ROCE ratio of TATA Steel in 2020-21 is: -

 TATA Steel standalone: -9.80%

 TATA Steel group:- 7.89%

Findings:
1. Since the current ratio is below the desired value of 2:1, the regular cash flow is excellent.
2. All of the profitability ratios have increased over the past two years, indicating that the
business is operating profitably.

Tata Steel S.W.O.T Analysis

1. Strengths of Tata Steel
Tata Steel is the second-largest steelmaker in the world and one of the most versatile,
offering a wide range of products from flat steel products to farming tools and
construction equipment, among many other things. various product portfolios:
• TATA trust: One of the most well-known and trusted brands, both in India and
internationally, is Tata.
• Integrated operation in India: For the manufacturing of steel's final materials, the
entire mining and mining process is integrated into India.
2. Weaknesses of Tata Steel
• The Mistry crisis hurt the group's reputation: The fallout between Ratan Tata and
Cyrus Mistry, which also refers to Tata Steel, has hurt the group's reputation.
• Tata Steel conducts more than 50% of its business in Europe, thus any slowdown in
that region's economy will have an effect on its earnings.
• Fragmented European operations: Tata Steel is integrated in India, but its operations
there are fragmented, requiring it to rely on a number of external suppliers. Quality
control will be more expensive as a result.
3. Opportunities of Tata Steel
• Due to India's rapid economic development, it is anticipated that the country's steel
manufacturing facilities and industry will grow during the next four years.
• Adopt new technologies: Tata Steel has the chance to use cutting-edge innovations
like Cortex and Hismelt even if it lags behind its rivals in this area.
• The production, manufacturing, and automotive industries are expanding globally.
This development will support Tata Steel's future expansion in these sectors as well as
the steel industry.
4. Threats of Tata Steel
• Fierce competition: Major competitors of Tata Steel, including JSW Steel, Essar Steel,
and ArcelorMittal, engage in bitter competition.

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 • Government and Environmental Laws: Tata Steel is bound by stringent legal and
ethical guidelines in both its mining operations and its manufacturing processes.
• A reduction in world steel prices as a result of China's surplus steel output, which
forced a global decline in production.

Issues with the Tata Steel Company

Source Issue
The source issue is connected to Ratan Tata's concerns about the future of his company and
the deregulation of the Indian economy at the start of the 1990s.Firm had a significant impact.
Even if the business could take pride in its successes in broadening its geographic reach
globally, it was still unclear which way to turn. Such uncertainty was partly attributed to the
underdevelopment of facilities in India, which may restrict the local expansion of Tata Groups.
Subsidiary Issues [Short-Term]
1. Problems at Tata with Talent Development and Retention:
According to the case study on Tata Group, the unfavourable working environment and salary
inequities pushed local employees to quit their employment in quest of better working
circumstances abroad. Rajan Tata also frequently felt forced into having a dedicated group of
managers and leaders who will successfully address the issue of the company's talent shortage
and ensure its retention in the Tata Group's business strategy4.
2. Ownership issues with Corus: -
Tata Group faces a significant difficulty as a result of incurring more than $7 billion in
debt to purchase Corus, a steel business with operations in the UK and the Netherlands.
Additionally, the trade union that protected the interests of Corus employees demanded that
the new owners provide $600 million to securing their safety and way of life. Thus, Tata Steel
had to make a difficult choice in order to be socially responsible in reference to its employees.
3. On the long term:
It is conceivable that Tata Group's businesses have become overly diversified, which has
caused the organisation to lose its direction. It need to have given more attention to the
leading sectors, which typically produce greater profits. Ratan Tata has failed to make his
business' operations more efficient, and he must now deal with the long-term difficulties of
having a future successor carry the bulk of the organisation.

25
CHAPTER 5

26
Conclusion
This Ratio analysis project in the production concern is more than just a project's task.
However, a basic understanding of and expertise with how to assess the firm's financial
performance. The investigation that was done has revealed the following findings. In
this research, I learned that TATA Steel is operating fairly and generating profit based
on a review of financial statements. Therefore, the company's performance prognosis
remains upbeat and hopeful.
The business is still confident in its ability to generate solid operational and financial
results. An effective stock velocity suggests that the company is managing its inventory
well and that there are no defective goods causing the stock to move slowly.

Recommended Strategy
The Tata Group is encouraged to reassess its existing orientation and make an effort to
maintain its concentration on a small number of priorities13. Since worldwide diversity
and expansion did not produce any benefits, Tata Group should stop expanding for the
sake of simpler management and higher profitability. Since the nation already faces
severe labour shortages, it is also advised to incorporate social responsibility activities
for retaining talent14 in the firm.

Bibliography
1. www.moneycontrol.com
2. https://www.tatasteel.com/#stats
3. https://en.wikipedia.org/wiki/Tata_Steel
4. https://studycorgi.com/tata-groups-problems-and-recommended-strategies/
5. Problems facing Tata Steel company - Free Essahttps://essaylead.com/problems-facingtata-
steel-company/y Example by Essaylead
6. Financial accounting book by DK GOEL.

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Annexure

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