PRESENTED BY:-

SUPRIYA
GANJHU(MBA/10020/2013)
ARADHANA
KUMARI(MBA/10021/2013)
PRIYANKA SEN(MBA/10026/2013)
NUPUR
RUKHAIYAR(MBA/10038/2013)
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 was the 12
th
largest
steel producing company in the world in
2012, with an annual crude steel capacity
of 23.8 million tonnes, and the largest
private-sector steel company in India
measured by domestic production
SAIL is one of the largest state-owned steel-making
company based in New Delhi, India and one of the
top steel makers in World. With a turnover
of 486.81 billion (US$7.4 billion), the company is
among the top five highest profit earning
corporates of the country (source?). It is a public
sector undertaking which trades publicly in the
market is largely owned by Government of
India and acts like an operating company.
Incorporated on 24 January 1973, SAIL has more
than 100,000 employees. During 201011, the
manpower of SAIL reached a level of 110794 (as on
31 March 2011) from 116950 (as on 1.4.2010) The
company's current chairman is C.S Verma. With an
annual production of 13.5 million metric tons, SAIL
is the 14th largest steel producer in the world.
RATIO- Relationship between two related
and interdependent items, expressed in
arithmetic terms called ratio.
Accounting ratio-an arithmetical
relationship between two accounting
variables.
Ratio analysis- it is a study of
relationship among various financial
factors in buisness.
Ratio analysis is a computing ,determining and
presenting the relationship of items or groups of
financial statements to provide a meaningful
understanding of the performance and financial
position of a business.
Ratio analysis is a technique of analysing the
financial statement by computing accounting ratio
and interpreting it to draw meaningful conclusion.
Profitability Ratio:- It tells you about the
profit earning capacity of the business and
measures the overall performance and
effectiveness of the firm.
1. Gross profit margin ratio:-
It is calculated by dividing the gross profit
by sales.
gross profit margin ratio= gross profit/sales
2. Net profit margin ratio:-
It is calculated by dividing Profit After Tax by sales.
Net Profit Margin Ratio=Profit After Tax/Sales
Liquidity ratio-these ratios analyze short
term solvency position of buisness by
comparing current assets with the current
liablities .
1.current ratio- it helps to measure the
ability of the buisness to pay off its
current liablities out of current assets.
Current ratio=current assets/ current
liablities

2. quick ratio- it is the the measure of
firms capacity to payoff current obligations
immediately.
quick ratio= current assets-inventories-
prepaid expenses/current
liablities
3. Leverage ratio- it is calculated to measure
or to asess the ability of firm to meet its its
long term liabilities as and when they become
due.
it is to judge long term financial position of the
firm.
this is the mix of funds

4. Debt equity ratio- it is calculated by
deviding total debt by net worth
debt equity ratio= total debt/ net worth
Turnover ratios - this is also termed as
performance ratio or activity ratio
These ratios called turnover ratios
because they indicate the speed with
which assets are being converted or
turned over into sales.
It shows the better the management of
assets, the larger is the amount of sales
and profit.
1. Inventory ratio this ratio indicates the
efficiency of the firm in producing and
selling its product
inventory turnover ratio= cost of goods
sold/ average inventory
2. Debtors Turnover Ratio:- It is calculated
by dividing credit sales by average
debtors.
Debtors Turnover Ratio=
Net Credit Sales/Average Debtors
3. Fixed Assets Turnover Ratio:- It is
calculated by dividing cost of goods sold or
Net sales by Fixed Assets.
4. Total Fixed Assets Turnover Ratio:- It is
calculated by dividing the sales by total
assets.
Total Fixed Assets Turnover Ratio=
Sales/Total Assets



RATIOS TATA STEEL SAIL
GROSS PROFIT
MARGIN
24.83 7.20
NET PROFIT MARGIN 12.94 4.76
CURRENT RATIO 0.86 1.01
QUICK RATIO 0.61 0.68
DEBT EQUITY RATIO 0.47 0.52
INVENTORY RATIO 7.27 2.79
DEBTORS RATIO 44.91 9.71
FIXED ASSET RATIO 1.01 1.09
TOTAL ASSETS RATIO 0.47 0.73
DIVDIEND PER SHARE 8 2
Gross profit margin ratio=( gross profit/ sales )
* 100
Tata steel= (9484.92/38199.43) *100
=24.83
SAIL = (3211.07/44598.26)*100 =7.20
We have GPMR of SAIL=7.20 and T.S.=24.83 and
hence it is higher in T.S. Than SAIL.
It shows the: -good management system in
T.S. as compared to SAIL.
lower cost of goods sold as compared to
SAIL
lower cost of production.

Net profit margin= (net profit/ sales)*100
Tata steel = (4943.01/38199.43)*100=12.94
SAIL = (2122.88/44598.26)*100 = 4.76
It shows the management efficiency in
manufacturing, administering and selling of
product.
With the higher MPMR, T.S. Can make
better use of favourable conditions,such as-
rising selling price, falling cost of production
or increasing demand for the product.
T.S. is also able to achieve satisfactory
return on shareholders fund.


Liquidity ratio:-
Current Ratio= current asset/ current
liablities
SAIL =24282.74/21693.25= 1.62
T.S.= 8272.97/17098.06= 0.86
It shows CR for SAIL is higher than T.S.
It shows margin of safety for creditors in
both the companies is almost the same
Abilities to meet current obligations are
almost the same.
Quick ratio= current assets-stock-prepaid
expenses/current liabilities
SAIL=0.68
TATA STEEL = 0.61
Both the companies with a low value of
quick ratio.
It shows credit worthiness of companies
debtors and companies has been turning
over its inventories efficiently.
Debt equity ratio= debt/ net worth
SAIL= 21500/4102464= 0.52
TATA STEEL= 0.47
Lenders contribution in TATA STEEL is more
than that of SAIL
It shows the good credit worthiness of
TATA STEEL in market as compared to SAIL
Inventory turnover ratio= cost of good
sold/avg. inventory
SAIL= 2.79
TATA STEEL= 7.27
Inventory turnover ratio of T.S. is higher
than SAIL.
It shows good inventory management in
TATA STEEL.
This results in low level of inventory of T.S.
which results in frequent stockouts.

Debtors Turnover Ratio=Net Credit
Sales/Average Debtor
SAIL=9.71
TATA STEEL=44.91
Hence the Debtor Turnover Ratio for
SAIL=9.71 and T.S.=44.91
Average collection period=360/Debtors
Turnover Ratio


Therefore SAIL=360/9.71=37 days approx.
And TATA STEEL=360/44.91=8 days appox.
So we can say that the T.S. has the quality of
debtors and the speed of their collection.
Fixed Asset Turnover Ratio=Sales/Net Assets
SAIL=1.09
TATA STEEL=1.01
Here the Fixed Assets Turnover Ratio for
SAIL=1.09 and TATA STEEL=1.01
The Ratios of both the companies indicates
the better utilization of Fixed Assets.
Firms are able to produce a large volume of
sales for a give amount of net sales.

Total Assets Turnover Ratio=Turnover/Total
Assets
SAIL=0.73
TATA STEEL=0.47
The Ratio shows the SAIL ability in generating
sales from all financial sources is more than
TATA STEEL.
On the basis of the ratio analysis we
find that :-
-management of the TATA STEEL is
more efficient than SAIL in production,
inventory use, working capital and assets
management.
There is a large market share of TATA
STEEL
Larger amount of sale and good collection
period.
Profit of TATA STEEL is higher than SAIL.