Financial Accounting

Group Project Milestone # 1

Term 1, 2016
1. Organization Name:Tata Steel Limited (formerly Tata Iron and Steel Company
Limited)
2. Summary Description of Business: Tata Steel is anIndian steel making
multinational company, having manufacturing operations in 26 countries. It is
worlds 11th and Indias 2nd largest steel manufacturer. With 9.5 MnT Deliveries for
year 2015-16 its revenue stood for INR 382 Bn.
3. Sector: Manufacturing /Steel-Large
4. Industry: mining and metals Sub-Industry:Steel
5. NSE Stock Code:TATASTEEL
6. Main Products and services:The steel plants produce pig iron, soft iron, cast iron
and alloy. They produce hot rolled, cold rolled, direct rolled, pre-finished steel etc.
They also produce structural steel, locomotive parts, agricultural equipment,
machinery, tinplate, cable and wire.
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
The principal activities and revenue streams according to the latest reports are as
follows:

The different market segments to which Tata steel caters are:

Constructio
n

Automotive General
Engineering

Industrial

Agriculture

Individual House
and
Rural Roofing
Commercial

Auto OEMs

Panel & Appliances

LPG

Agri.
Equipment

Auto Ancillaries

Fabricating & Capital

Goods

Welding

Fencing,
Farming &
Irrigation

Furniture

Process industries
like
Cement, Power,
Steel

Infrastructure

7. Who are likely to be the companys major suppliers/sectors?

Mining sector
Material sector (Engineering Equipment)

8. Who are likely to be companys major customers?

Customers- TATA STEEL (INDIA)

Panchmahal Steel Limited

Essar Steel Limited
POSCO

Rathi
Shah Nippon Yakin
Hitachi NSSC

JEE
Ispat

9. Does the company export its products? To which countries?

Tata steel exports steel to the following countries:
UAE
Sri Lanka
Banglade
sh
South
Africa
Nigeria
Sweden

Greece
Hong Kong
SAR
Netherland
s
Poland
China

Ghana
USA
Thailan
d
Nepal
Italy
Norway

Madagas
car
Argentina
Japan
Slovenia
Turkey
Finland

Qatar
Mauritius
Ethiopia
Saudi
Arabia
Senegal
Ireland

Tanzania
Algeria
Philippin
es
Uruguay
Germany
Switzerla
nd

UK
Mexico
Bulgaria
France
Isle of
man
Romania

How many employees does it have?

77,000 approx.

10.

Identify the companies reporting entities?

The name of the consolidated financial statement is TATA STEEL GROUP and the
parent only is TATA STEEL STANDALONE which gives us the cash flow statements
for the financial year 2015-16.

11.

The names of the subsidiaries of the companies are as follows:

ABJA Investment Co. Pte. Ltd.

ii)

Adityapur Toll Bridge Company Limited

iii)

Bangla Steel & Mining Co. Ltd.

iv)

Tata Steel Special Economic Zone Limited

v)

Indian Steel & Wire Products Ltd.

vi)
vii)

viii)

Jamshedpur Continuous Annealing and Processing Company Private

Limited
Jamshedpur Utilities & Services Company Limited
1

Haldia Water Management Limited

Naba Diganta Water Management Limited

SEZ Adityapur Limited

NatSteel Asia Pte. Ltd.

1

Tata Steel Asia (Hong Kong) Ltd.

Tata Steel Resources Australia Pty. Ltd.

ix)

T M Mining Company Limited

x)

T S Alloys Limited

xi)

Tata Incorporated

xii)

Tata Korf Engineering Services Ltd.

xiii)

Tata Metaliks Ltd.

1

xiv)

Tata Metaliks DI Pipes Limited

Tata Sponge Iron Limited

1

TSIL Energy Limited

xv)

Tata Steel (KZN) (Pty) Ltd.

xvi)

Tata Steel Holdings Pte. Ltd.

1

Tata Steel Global Holdings Pte Ltd.

I.

Orchid Netherlands (No.1) B.V.

II.

NatSteel Holdings Pte. Ltd.

1

Burwill Trading Pte. Ltd.

Easteel Services (M)

Sdn. Bhd.
Eastern Steel

Fabricators Philippines,
Inc.

Eastern Steel Services

Pte. Ltd.

Eastern Wire Pte. Ltd.

NatSteel (Xiamen) Ltd.

NatSteel Asia (S) Pte.

Ltd.
NatSteel Equity IV Pte.
Ltd.
NatSteel Recycling Pte
Ltd.
NatSteel Trade

10

International (Shanghai)
Company Ltd.

11
12
13
14
III.

NatSteel Trade
International Pte. Ltd.
NatSteel Vina Co. Ltd.
The Siam Industrial Wire
Company Ltd.
TSN Wires Co. Ltd.

Tata Steel Europe Limited

1

Almana Steel Dubai

(Jersey) Limited
Apollo Metals Limited

(Included within
Hoogovens USA Inc.
Consolidated Accounts)

Ashorne Hill
Management College
Augusta Grundstucks
GmbH (Included within

Tata Steel Germany

GmbH Consolidated
Accounts)

Automotive Laser
Technologies Limited
B S Pension Fund
Trustee Limited
Beheermaatschappij

Industriele Produkten
B.V.
Belfin

Beheermaatschappij
B.V.

Bell & Harwood Limited

10

Blastmega Limited
Blume Stahlservice
GmbH (Included within

11

Tata Steel Germany

GmbH Consolidated
Accounts)

12

13
14
15

16

Blume Stahlservice
Polska Sp.Z.O.O
Bore Samson Group
Limited
Bore Steel Limited
British Guide Rails
Limited
British Steel Corporation
Limited
British Steel De Mexico

17

S.A. de C.V. (Yet to

commence operations)

18

19

20

21
22

British Steel Directors

(Nominees) Limited
British Steel Engineering
Steels (Exports) Limited
British Steel Nederland
International B.V.
British Steel Samson
Limited
British Steel Service

Centres Limited
23

British Tubes
Stockholding Limited

24

C V Benine

25

C Walker & Sons Limited

26

Catnic GmbH

27

Catnic Limited

28

29

CBS Investissements
SAS
Cladding & Decking (UK)
Limited

30

Cogent Power Inc.

31

Cogent Power SA DE CV

32

Cogent Power Inc., USA

33

Cogent Power Limited

34

Color Steels Limited

35

Corbeil Les Rives SCI

36
37

Corby (Northants) &

District Water Co.
Cordor (C& B) Limited
Corus Aluminium
Verwaltungsgesellschaft

38

Mbh (Included within

Tata Steel Germany
GmbH Consolidated
Accounts)
Corus Beteiligungs
GmbH (Included within

39

Tata Steel Germany

GmbH Consolidated
Accounts)

40

41
42

Corus Building Systems

Bulgaria AD
Corus Building Systems
SAS (Under Liquidation)
Corus CNBV

Investments
43

44

45

46

Corus Cold drawn Tubes

Limited
Corus Engineering
Steels (UK) Limited
Corus Engineering
Steels Holdings Limited
Corus Engineering
Steels Limited
Corus Engineering

47

Steels Overseas
Holdings Limited
Corus Engineering

48

Steels Pension Scheme

Trustee Limited

49

Corus Group Limited

50

Corus Holdings Limited

Corus International

51

(Overseas Holdings)
Limited

52

53

54
55
56

57

58

59

60

Corus International
Limited
Corus International
Romania SRL.
Corus Investments
Limited
Corus Ireland Limited
Corus Large Diameter
Pipes Limited
Corus Liaison Services
(India) Limited
Corus Management
Limited
Corus Primary
Aluminium B.V.
Corus Properties
(Germany) Limited

61

Corus Property
Corus Republic of

62

Ireland Subsidiaries
Pension Scheme Trustee
Limited

63

64

65

66

Corus Service Centre

Limited
Corus Steel Service STP
LLC
Corus Tubes Poland
Spolka Z.O.O
Corus UK Healthcare
Trustee Limited

67

Corus Ukraine LLC

68

CPN (85) Limited

69

Crucible Insurance
Company Limited

70

Degels GmbH

71

Demka B.V.

72

DSRM Group Plc.

73

Eric Olsson & Soner

Forvaltnings AB

74

Esmil B.V.

75

Europressings Limited

76

Firsteel Group Limited

77

Firsteel Holdings Limited

78

Firsteel Strip Mill

Products Limited
Fischer Profil
GmbH (Included within

79

Tata Steel Germany

GmbH Consolidated
Accounts)

80
81

Gamble Simms Metals

Limited
Grant Lyon Eagre

Limited
82
83

H E Samson Limited
Hadfields Holdings
Limited
Halmstad Steel Service

84

Centre AB (Yet to
commence operations)

85
86

Hammermega Limited
Harrowmills Properties
Limited
Hille & Muller
GmbH (Included within

87

Tata Steel Germany

GmbH Consolidated
Accounts)
Hille & Muller USA Inc.

88

(Included within
Hoogovens USA Inc.
Consolidated Accounts)

89
90

Hoogovens (UK) Limited

Hoogovens Aluminium
UK Limited

91

Hoogovens Finance B.V.

92

Hoogovens USA Inc.

93

94

95

Huizenbezit Breesaap
B.V.
Ickles Cottage Trust
Limited
Inter Metal Distribution
SAS

96

Kalzip Asia Pte Limited

97

Kalzip FZE
Kalzip GmbH (Included

98

within Tata Steel

Germany GmbH
Consolidated Accounts)

99

Kalzip GmbH (Included

within Tata Steel

Germany GmbH
Consolidated Accounts)
100
101
102

Kalzip Guangzhou
Limited
Kalzip Inc
Kalzip India Private
Limited

103

Kalzip Italy SRL

104

Kalzip Limited

105

Kalzip Spain S.L.U.

106

Layde Steel S.L.

107

Lister Tubes Limited

108

London Works Steel

Company Limited
Longs Steel UK Limited

109

(Yet to commence
operations)

110

111

112
113

Midland Steel Supplies

Limited
Mistbury Investments
Limited
Montana Bausysteme
AG
Myriad Nederland B.V.
Naantali Steel Service

114

Centre OY (Yet to
commence operations)

115
116

Namascor B.V.
Nationwide Steelstock
Limited
Norsk Stal Tynnplater AS

117

(Yet to commence
operations)

118

Orb Electrical Steels

Limited

119

Ore Carriers Limited

120

Oremco Inc.

121

122
123
124

125

Plated Strip
(International) Limited
Precoat International
Limited
Precoat Limited
Rafferty-Brown Steel Co
Inc Of Conn.
Round Oak Steelworks
Limited

126

Runblast Limited

127

Runmega Limited

128

S A B Profiel B.V.

129

S A B Profil GmbH

130

Seamless Tubes Limited

Service Center
Gelsenkirchen

131

GmbH (Included within

Tata Steel Germany
GmbH Consolidated
Accounts)

132
133
134

135

136

137
138
139

Service Centre
Maastricht B.V.
Skruv Erik AB
Societe Europeenne De
Galvanisation (Segal) Sa
Staalverwerking en
Handel B.V.
Stainless Velsen-Noord
BV
Steel StockHoldings
Limited
Steelstock Limited
Stewarts & Lloyds of
Ireland Limited

140

141
142
143

144

145

146

147

148

Stewarts and Lloyds

(Overseas) Limited
Stocksbridge Works
Cottage Trust Limited
Surahammar Bruks AB
Swinden Housing
Association Limited
Tata Steel Belgium
Packaging Steels N.V.
Tata Steel Belgium
Services N.V.
Tata Steel Denmark
Byggsystemer A/S
Tata Steel Europe
Distribution BV
Tata Steel Europe Metals
Trading BV
Tata Steel France

149

Batiment et Systemes
SAS

150

151

152
153
154

155

156

157

158

Tata Steel France

Holdings SAS
Tata Steel France Rail
SAS
Tata Steel Germany
GmbH
Tata Steel IJmuiden BV
Tata Steel International
(Americas) Holdings Inc
Tata Steel International
(Americas) Inc
Tata Steel International
(Benelux) BV
Tata Steel International
(Canada) Holdings Inc
Tata Steel International
(Czech Republic) S.R.O

159

160

161

Tata Steel International

(Denmark) A/S
Tata Steel International
(Finland) OY
Tata Steel International
(France) SAS
Tata Steel International
(Germany)

162

GmbH (Included within

Tata Steel Germany
GmbH Consolidated
Accounts)
Tata Steel International

163

(South America)
Representaes LTDA

164

165

166

Tata Steel International

Hellas SA
Tata Steel International
(Italia) SRL
Tata Steel International
(Middle East) FZE
Tata Steel International

167

(Nigeria) Ltd. (Yet to

commence operations)

168

169

170

171

172

173

174

Tata Steel International

(Poland) sp Zoo
Tata Steel International
(Schweiz) AG
Tata Steel International
(Sweden) AB
Tata Steel International
(India) Limited
Tata Steel International
Iberica SA
Tata Steel Istanbul Metal
Sanayi ve Ticaret AS
Tata Steel Latvia
Building Systems SIA

175

176
177

Tata Steel Logistics and

Shipping BV
Tata Steel Maubeuge
SAS
Tata Steel Nederland BV
Tata Steel Nederland

178

Consulting & Technical

Services BV

179

180

181

182

183

184

Tata Steel Nederland

Services BV
Tata Steel Nederland
Star-Frame BV
Tata Steel Nederland
Technology BV
Tata Steel Nederland
Tubes BV
Tata Steel Netherlands
Holdings B.V.
Tata Steel Norway
Byggsystemer A/S
Tata Steel Speciality

185

Service Centre Suzhou

Co. Limited

186

Tata Steel Sweden

Byggsystem AB
Tata Steel Speciality

187

Service Centre Xian Co.

Limited

188

189
190
191

Tata Steel UK Consulting

Limited
Tata Steel UK Holdings
Limited
Tata Steel UK Limited
Tata Steel UK Rail
Consultancy Limited

192

Tata Steel USA Inc.

193

The Newport and South

Wales Tube Company

Limited
194

195

196

The Stanton Housing

Company Limited
The Steel Company Of
Ireland Limited
The Templeborough
Rolling Mills Limited
Thomas Processing
Company (Included

197

within Hoogovens USA

Inc. Consolidated
Accounts)
Thomas Steel Strip

198

Corp. (Included within

Hoogovens USA Inc.
Consolidated Accounts)

199

Toronto Industrial
Fabrications Limited
Trierer Walzwerk
GmbH (Included within

200

Tata Steel Germany

GmbH Consolidated
Accounts)

201

202

203
204
205

Tulip UK Holdings (No.2)

Limited
Tulip UK Holdings (No.3)
Limited
Tuscaloosa Steel
Corporation
U.E.S. Bright Bar Limited
UK Steel Enterprise
Limited
Ukse Fund Managers

206

(General Partner)
Limited

207
208

Ukse Fund Managers

Limited
Unitol SAS

Walker Manufacturing
209

And Investments
Limited

210

211

212

213

IV.

Walkersteelstock Ireland
Limited
Walkersteelstock
Limited
Westwood Steel
Services Limited
Whitehead (Narrow
Strip) Limited

Tata Steel Global Minerals Holdings Pte

Ltd.
1
2

Al Rimal Mining LLC

Black Ginger 461
(Proprietary) Ltd
Howse Minerals Ltd.
(Included within Tata

Steel Minerals Canada

Limited, Consolidated
Accounts)

8
9
V.

Kalimati Coal Company

Pty. Ltd.
Sedibeng Iron Ore Pty.
Ltd.
Tata Steel Cote D Ivoire
S.A
Tata Steel Minerals UK
Limited
Tata Steel Minerals
Canada Limited
T S Canada Capital Ltd

Tata Steel International (Singapore)

Holdings Pte. Ltd.
1

TSIA Holdings (Thailand)

Limited
Tata Steel International
(Shanghai) Ltd.

Tata Steel International

(Thailand) Limited
Tata Steel International

(Singapore) Pte. Ltd.

Tata Steel International

VI.

(Asia) Limited

Tata Steel (Thailand) Public Company

Ltd.
1

N.T.S Steel Group Plc.

The Siam Construction

Steel Co. Ltd.

The Siam Iron And Steel

VII.

(2001) Co. Ltd.

Tata Steel Global Procurement

Company Pte. Ltd.
1

ProCo Issuer Pte. Ltd.

xvii)

Tata Steel Odisha Limited

xviii)

Tata Steel Processing and Distribution Limited

xix)

Tayo Rolls Limited

xx)

TM International Logistics Limited

1

International Shipping and Logistics FZE

TKM Global China Ltd

TKM Global GmbH

TKM Global Logistics Limited

TM Harbour Services Private Limited

xxi)

The Tata Pigments Limited

xxii)

The Tinplate Company of India Limited

12.

Key Statistics:
12M Total Return
Mkt Cap
P/E
Est P/E
T12M EPS

33.9%
357844.3 Mn
N/A
19.69
32.77

Est EPS
Div. Yield
Beta vs Sensex
Price to Book

18.71
2.2%
1.23
1.26

13. Identify 3 important news stories for your company from the last 6 months that are likely to have
a significant impact on its future.
a. Impact of Brexit on TATA Steel
The exit of Britain from European Union has dealt a blow to Tata Steels plans to sell its
steel business in UK. Sale of its largest plant Port Talbot along with other businesses has
been stalled.
b. Budget 2016 impact on Tata Steel:Finance Minister Aun Jaitley has announced that the Government is likely to spend Rs 2.21
lakh crore on infrastructure. This is likely to create demand for steel industry which is
reeling under competition from imports and poor domestic demand. Government
procurement from domestic sector will act as a stimulus for Tata Steel.
c. U.K. Secretary of State for Business, Energy and Industrial Strategy holds crisis
talks with Tata Steel Bosses and Unions : Assures protecting Steel Industry Top
Priority.
Tata Steel has stalled its plans to sell off its steel business in UK and is instead working on
a deal to keep its business through a merger with German Conglomerate ThyssenKrupp.
However, it is dependent on the Government supporting Tata Steel with loans and also
passing laws that allows Tata Steel to restructure the British Steel Pension Scheme whose
current liability stands at almost 15 billion.