INTRODUCTION OF TATA IRON AND STEEL COMPANY:

Tata Steel Limited (formerly known fata Iron and Steel Company Limited (SCO) an Indian
multinational steel-making company it was the 12th largest steel producing company in the
world, and the second largest private-sector steel company in India. 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 b located
in Jamshedpur, Jharkhand. It was ranked 471st in the 2013 Fortune Global 500 ranking of the
world's biggest corporations. It was the seventh must valuable Indian brand of 2013. On
February 12, 2013 Tata Steel completed too years of steel making in India

The Tata iron and steel company was established by Dorabaji Tata on 26 august 1907 as a part of
his father's Tata group. In 1939 it operated the largest steel plant in British Empire. The company
launched a major modernization and expansion program in 1951. In 1990 it set up a subsidiary
Tat Inc. in New York. In 2005 its name changed from TISCO to TATA STEEL

Tata steel is established to set up India's first iron and steel plant in Jamshedpur. The plant started
production in 1912.With a century of experience in sourcing raw material through scientific
research and development and sustainable mining, Tata Steel's three main areas of raw material
operations are iron-ore, chromite, limestone and coal. The company's long term strategy has been
designed to have greater control over raw material resources and achieve its security over global
operations.

ANALYSIS:

Analysis of Comparative Balance Sheet

As we can see in the comparative balance sheet of TATA iron and steel above, the
company’s total share capital is the same for last 3 years and in the current year the
share capital is increased. In the year 2021 It implies that the company has been
issued additional shares and after that in 2022 the company has been release the
shares.

The company’s total reserves and surplus increase by 56.68% in the year 2022

over 2021, increase by 3.00% in the year 2021 over 2020, increase by 7.10% in the
year 2020 over 2019 and increase by 14.0198414% in the year 2019 over 2018. It
exhibits that the company has earn profit and added reserve and surplus.

The company’s total non-current liabilities increase by 9.71870114% in the year

2019 over 2018, increased by 11.20% in the year 2020 over 2019. If a company
has a high proportion of noncurrent, this can be an indicator of poor liquidity, since
a large amount of cash may be needed to support ongoing investments in noncash
assets. Decrease NCL by -13.75% in the year 2020 over 2021 and -19.93%in the
year 2022 over 2021. The lower the percentage, the less leverage a company is
using and the stronger its equity position. The higher the ratio, the more financial
risk a company is taking on.
-The company’s total current Liabilities increase by 27.83% in the year 2022 over
2021, increase by 14.93% in the year 2021 over 2020 and increase by 1.03% in the
year 2020 over 2019, increase by 9.65250431% in the year 2019 over 2018 There
was an increase in purchases of current assets.

-The company’s total current assets increased by 4.11% in the year 2022 over
2021, increase by 9.79% in the year 2020 over 2019, and increased by
23.0550114% in the year 2019 over 2018. Because the cash balance in a company
rises and falls based on inflows and outflows of operational cash and financing
activities. An increase in an asset is offset by either a decrease in another asset, an
increase in a liability or equity account, or a decrease in an expense. Decrease by
2-3.34% in the year 2021 over 2020.

-The company’s total current assets increased by 53.72% in the year 2022 over
2021, increased by 2.52% in the year 2021 over 2020, Because the cash balance in
a company rises and falls based on inflows and outflows of operational cash and
financing activities. An increase in an asset is offset by either a decrease in another
asset, an increase in a liability or equity account, or a decrease in an expense.
Decrease by -0.44% in the year 2020 over 2019 and increased by -13.091561% in
the year 2019 over 2018.

Analysis of Comparative Profit & loss Account

As we can see in the comparative Profit & loss account of tata iron and steel
company above, The company’s total revenue has increase by 55.52%, in the year
2021 over 2022, increase by 4.36% in the year 2020 over 2021 and decrease by 1-
5.21% in the year 2019over 2020. Revenue growth is a metric that indicates the
failure of a business. Increase by 19.55745003% in the year 2019over 2018 but in
this year it indicates the success of a business.

The company’s total Expenses has increased by 36.56% in the year 2021 over
2022, increase 2.89% in the year 2020 over 2019 and increase by 2.89% in the year
2019 over 2018 Increasing expenses are not necessarily a bad thing. If a
company's revenues are increasing, there is an almost certain likelihood that
expenses are increasing. These costs are attributable to the costs of the goods sold
of a manufacturer. Decrease by -3.13% in the year 2020 over 2021, but in this case
there is certain likelihood that expenses are decreasing.

The company’s profit before tax has increased by 266.80% in the year 2021over
2022, Profit before tax can also be a profitability measure that provides for greater
comparability among companies that pay a varying amount of taxes. Decreased by
-110.00% in the year 2020 over 2019 and decreased by -25.098958% in the year
2019 over 2018 and has decreased by -961.79% in the year 2020 over 2021. It
provides for lower comparability among companies.

The company’s total tax has increased by 49.94% in the year 2022 over 2021,
increased by 97.28812265% in the year 2019 over 2018, Raising personal income
tax rates has allowed states to prevent or minimize harmful budget cuts or invest in
ambitious new initiatives such as current tax and deferred. Decreased by -138.00%
in the year 2020 over 2019, Decreased by -321.47% in the year 2021 over 2020,
Decreased by 2.14% in the year 2019 over 2018. Amount withdrawn from any
reserve or provision, depreciation debited to P&L (except revaluation
depreciation), lower of loss brought forward or unabsorbed depreciation and
deferred tax credited to P&L.
The company’s profit after tax has increased by 422.74% in the year 2022 over
2021, increased by 698.63% in the year 2021over 2020 .That provides for greater
comparability among companies that pay a varying amount of taxes. Decrease by
--88.91% in the year 2020 over 2019 and decrease by -49.54928474% in the year
2019 over 2018 it provides for lower comparability among companies.

Analysis of Common size Balance Sheet

As we can see in the Common size balance sheet of Tata iron and steel above, the
company’s total share capital has decrease from 0.545843% (2018) to 0.4278258%
(2022). The share capital of a company may be decrease by suppression new
shares.

The company’s total Reserves and Surplus has increased from 27.38902% (2018)
to 39.664941%(2022). Reserves and surplus are the increasing amounts of retained
earnings recorded as a component of the shareholders' equity.

The company’s Total Non-Current Liabilities has decrease from 43.99804%

(2018) to 27.241317% (2022). A high percentage shows that company has low
leverage which decrease its default risk.

The company’s Total Current Liabilities has increase from 26.53602% (2018) to
31.735644% (2022). The total current liabilities increase in use of funding and
represent the cash inflow.

The company’s Total Non-Current Assets has decrease from 67.64024% (2018) to
67.574694% (2022). A noncurrent asset is an asset that is expected to be consumed
within one year. If a company has a low proportion of noncurrent to current assets,
this can be an indicator of high liquidity.

The company’s Total Current Assets has increase from 32.35976 (2018) to
32.425306 (2022). In essence, having substantially less current liab. than assets it
indicates that a business should be able to meet its short-term obligations.

Analysis of Common Size Profit & loss Account

As we can see in the common size Profit & loss account of Zomato above, we've
shown the percentage that it makes up of total revenue. If we just looked at
numbers, it might seem like this company did better in 2022 because total revenue
decrease from 101.0048% to 100.9975%. Revenue growth is a metric that indicates
the failure of a business.

We've shown the percentage that it makes up of total expenses. If we just looked at
numbers, it might seem like this company did better in 2022 because total expenses
increased from 92.39965% to 80.48315%. Increasing expenses are necessarily a
good thing. If a company's revenues are decreasing there is an almost certain
likelihood that expenses are decreasing.

We've shown the percentage that it makes up of profit before tax. If we just looked
at numbers, it might seem like this company did better in 2022 because profit
before tax increased from 15.89146% to20.45902%. Profit before tax can also be a
profitability measure that provides for greater comparability among companies that
pay a varying amount of taxes.

We've shown the percentage that it makes up of total tax expenses. If we just
looked at numbers, it might seem like this company did better in 2022 because
total tax expenses increased from 2.584903% to 3.498395%. Raising personal
income tax rates has allowed states to prevent or minimize harmful budget cuts or
invest in ambitious new initiatives such as current tax and deferred.

We've shown the percentage that it makes up of profit after tax. If we just looked at
numbers, it might seem like this company did better in 2022 because profit after
tax increase from 13.35093% to 16.96063%. That provides for high comparability
among companies.

Analysis of Balance Sheet

The Assets Side of the Balance Sheet shows you the Cash the company holds as of March 2018
which is Rs 7937.85 and increases to Rs 15898.93 in March 2022. The total current assets
Balance of Rs. 67877.16 in March 2018 and increased to Rs. 92556.61 in March 2022 which
shows that In essence, having substantially more current assets than liabilities indicates that a
business should be able to meet its short-term obligations. The total non-current assets balance of
Rs. 141880.78 in March 2018 and increased to Rs. 192888.99 in March 2022 shows that, if a
company has a high proportion of noncurrent to current assets, this can be an indicator of poor
liquidity, since a large amount of cash may be needed to support ongoing investments in noncash
assets.
The Liabilities Side of the Balance Sheet show you the total current liabilities of company Rs.
556614.1 in March 20218 and increased to Rs. 90588.00 in March 2022 shows that any increase
in liabilities is a source of funding and so represents a cash inflow: Increases in accounts payable
means a company purchased goods on credit, conserving its cash. The total non- current
liabilities Balance of Rs. 92289.39 in March 2018 and decreased to Rs. 77759.14 in March 2022
shows that While lenders are primarily concerned with short-term liquidity and the amount of
current liabilities, long-term investors use noncurrent liabilities to gauge whether a company is
using excessive leverage. 

Analysis of Profit & loss Account

Having analyzed the underlying trends of the balance sheet, we now turn our attention to that of
the P&L statement, which is where the derivation of the profits/losses experienced is shown,
allowing us to identify the impact of the various income components. For this, we look at the
breakdown of the P&L statement. Looking at the raw numbers for total revenue, we see a
substantial jump from Rs. 133065.20 in 2018 to Rs. 244744.06 in 2022. Revenue growth is a
metric that indicates the success of a business. Total Expenses, we see a substantial jump from
Rs. 121728.67 in 2018 to Rs 195032.29 in 2022. Increasing expenses are not necessarily a bad
thing. If a company's revenues are increasing, there is an almost certain likelihood that expenses
are increasing. These costs are attributable to the costs of the goods sold of a manufacturer. Profit
before tax, we see that it increase from Rs. 20935.65 in 2018 to Rs. 49577.71 in 2022. Total tax
expenses, we see a substantial jump from Rs 3405.39 in 2018 to Rs. 8477.55 in 2022. Raising
personal income tax rates has allowed states to prevent or minimize harmful budget cuts or
invest in ambitious new initiatives such as current tax and deferred. Profit after tax, we see that it
increase from Rs. 17588.71 in 2018 to Rs. 41100.16 in 2022.