Professional Documents
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On the very outset of this report, I would like to extend my sincere & heartfelt obligation
towards all the personages who have helped me in this Endeavour. Without their active
guidance, help, cooperation & encouragement, I would not have made headway in the
project.
I am extremely thankful and pay my gratitude to my faculty guide Dr. Kartik
Chandra Paul for his valuable guidance and support on completion of this project in
its presently.
I extend my gratitude to Vidyasagar University for giving me this opportunity.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents
and member of my family, who has always supported me morally as well as
economically.
At last but not least gratitude goes to all of my friends who directly or indirectly
helped me to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking You
Abhijit Paul
Table of Contents
SECTION 1
INTRODUCTION
WHAT IS LIQUIDITY
PROCESS TO MEASURES LIQIDITY
WHAT DO LIQUIDITY RATIOS MEASURES
PROFITABILITY
REASONS FOR COMPUTING PROFITABILITY
PROCES TO MEASURES PROFITABILTY
SECTION 2
LITERATURE REVIEW
INTRODUCTION TO THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
RELATIONSHIP BETWEEN LIQUIDITY AND PROFITABILITY
LIMITATION OF THE STUDY
SECTION 3
A BRIEF INTRODUCTION TO TATA STEEL
SECTION 4
RESEARCH METHODOLOGY
DATA COLLECTION METHOD
TOOLS AND TECHNIQUIES FOR ANALYSIS
SECTION 5
DATA ANALYSIS
INTERPETATIONS AND FINDINGS
RECOMMENDATION
SECTION 6
CONCLUSION
BIBILOGRAPHY
1.1 INTRODUCTION
For a successful business enterprise two types of assets are very important i.e. fixed assets
and current assets. Fixed assets viz., land & building, plant & machinery, furniture etc. are
not purchased for the purpose of sale but for the purpose of earning profit for a long
period in the future. On the other hand, current assets viz., stock, debtors, bills receivable,
cash and bank balance etc. are purchased for the production of goods and sales of those goods
through the process of operating cycle i.e. conversion of raw material into work-inprogress, work-in-progress into finished goods, finished goods into debtors and debtors are
converted into cash or bills receivable. The fixed assets are used in order to increase the
production of an organization and the current assets use the more fixed assets in day
to day working. The management of this working capital is known as working capital
management (Pandey & Jaisal, 2011). Working capital plays an important role in firm's
growth and profitability and is tightly interlinked with the concept of liquidity . This
liquidity-profitability relationship is associated with the maintenance of the proper level
of working capital. Liquidity and profitability are the two important and vital aspects of
corporate business life. No firm can survive without liquidity . Without making any profit
a firm may be considered as sick but one having no liquidity may soon meet its downfall
and ultimately die. As a matter of fact, liquidity is a pre-requisite for the survival of a
business firm. Thus, the liquidity management has become a basic and broad aspect of
judging the performance of a corporate entity.
1.2 WHAT IS LIQUDITY
Liquidity describes the degree to which an asset or security can be quickly bought or sold in
the market without affecting the asset's price.
Accounting liquidity measures the ease with which an individual or company can meet their
financial obligations with the liquid assets available to them. There are several ratios that
express accounting liquidity.
Cash is considered the standard for liquidity because it can most quickly and easily be
converted into other assets. If a person wants a Rs.1,000 refrigerator, cash is the asset that can
most easily be used to obtain it. If that person has no cash, but a rare book collection that has
been appraised at Rs.1,000, they are unlikely to find someone willing to trade them the
refrigerator for their collection. Instead, they will have to sell the collection and use the cash
to purchase the refrigerator. That may be fine if the person can wait months or years to make
the purchase, but it could present a problem if the person only had a few days. They may
have to sell the books at a discount, instead of waiting for a buyer who was willing to pay the
full value. Rare books are therefore an illiquid asset.
Current Ratio
The current ratio is the simplest and least strict ratio. Current assets are those that can
reasonably be converted to cash in one year.
Current Ratio = Current Assets / Current Liabilities
The acid-test or quick ratio is slightly more strict. It excludes inventories and other current
assets, which are not as liquid as cash and cash equivalents, accounts receivable and shortterm investments.
Cash Ratio
The cash ratio is the most exacting of the liquidity ratios, excluding accounts receivable as
well as inventories and other current assets. More than the current ratio or acid-test ratio, it
assess an entity's ability to stay solvent in the case of an emergency. Even highly profitable
companies can run into trouble if they do not have the liquidity to react to unforeseen events.
Cash Ratio = (Cash and Cash Equivalents + Short-Term Investments) / Current
Liabilities
operating and financial expenses that must be paid shortly and maturing installments under
long-term debt. Liquidity ratios measure a business ability to meet the payment obligations
by comparing the cash and near-cash with the payment obligations. If the coverage of the
latter by the former is insufficient, it indicates that the business might face difficulties in
meeting its immediate financial obligations. This can, in turn, affect the companys business
operations and profitability.
The near-cash assets are not all equal in their nearness to cash. Inventories are farthest from
cash (apart from advance payments and such minor items) as they typically become
receivables can also be very far from cash if customers are given several months to pay their
dues.
It is thus the speed of converting the different near-cash assets into cash that is important. The
cash conversion cycle measures this speed, and is used along with liquidity ratios to asses a
business short-term financial prospects.
Liquidity is the ability to repay short-term debt. We measure liquidity by comparing the
firms liquid assets cash or assets that will be turned into cash in the operating cycle to the
amount of short-term debt outstanding, which is the measurement provided by the current
ratio and the quick or acid-test ratio. We can also measure liquidity by comparing how
quickly accounts receivables turn over ( how long it takes to collect them on average) and
how quickly inventories turn over. The more quickly these assets can be turned over, the
more liquid the firm is.
1.5 PROFITABLITY
Profitability is the primary goal of all business ventures. Without profitability the business
will not survive in the long run. So measuring current and past profitability and projecting
future profitability is very important.
Profitability is measured with income and expenses. Income is money generated from the
activities of the business. For example, if crops and livestock are produced and sold, income
is generated. However, money coming into the business from activities like borrowing money
do not create income. This is simply a cash transaction between the business and the lender to
generate cash for operating the business or buying assets.
Expenses are the cost of resources used up or consumed by the activities of the business. For
example, seed corn is an expense of a farm business because it is used up in the production
process. Resources such as a machine whose useful life is more than one year is used up over
a period of years. Repayment of a loan is not an expense, it is merely a cash transfer between
the business and the lender.
1.6 REASON FOR COMPUTE PROFITABILITY
Whether you are recording profitability for the past period or projecting profitability for the
coming period, measuring profitability is the most important measure of the success of the
business. A business that is not profitable cannot survive. Conversely, a business that is
highly profitable has the ability to reward its owners with a large return on their investment.
Increasing profitability is one of the most important tasks of the business managers.
Managers constantly look for ways to change the business to improve profitability. These
potential changes can be analyzed with a pro forma income statement or a Partial Budget.
Partial budgeting allows you to assess the impact on profitability of a small or incremental
change in the business before it is implemented.
A variety of Profitability Ratios can be used to assess the financial health of a business. These
ratios, created from the income statement, can be compared with industry benchmarks.
Also, Income Statement Trends can be tracked over a period of years to identify emerging
problems.
1.7 PROCESS TO MEASSURE PROFITABLITY
To measure profitability there are some ratios like-------
Net sales is calculated by subtracting any returns or refunds from gross sales. Net
incomeequals total revenues minus total expenses and is usually the last number reported on
theincome statement.
Profit Margin Ratio = Net Income / Net sale or revenue
Gross Profit Margin Ratio is calculated by dividing gross profit by net sales.
Gross Profit Margin Ratio = Gross Profit/Net sale
To calculate return on investment, the benefits (or returns) of an investment are divided by
Total asset. The result can be expressed as a percentage or a ratio.
The return on capital employed measures the proportion of adjusted earnings to the amount of
capital and debt required for a business to function. For a company to remain in business
over the long term, its return on capital employed should be higher than its cost of capital;
otherwise, continuing operations gradually reduce the earnings available to shareholders.
Return On Capital Employed=Earnings before interest and taxes/Total assets - Current
liabilities
SECTION 2
LITERATURE REVIEW
INTRODUCTION TO THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
LIMITATION OF THE STUDY
INTODUCTION TO THE COMPANY
chapter
supports
management,
highlighting similar
generous payment required by common stock holders. Secondly, corporations do not invest
all their resources in profitable long-term projects. They also invest in less profitable
liquid assets that are held on their balance sheets. Also, rather than hoarding liquidity
themselves, corporations may secure lines of credit from financial institutions. Lastly,
Corporations engage in risk management and can use derivatives to hedge specific risks.
Foreign exchange swaps are a common tool to hedge against unfavorable movements
in exchange rates, especially for businesses involved in foreign trade.There are a
number of arguments that have been put forward for the value of liquidity
management. Two of the main arguments are taxes and managerial incentives.
Holmstrom and Tirole, 2000, however, not too convinced by the mentioned arguments
suggest that liquidity management derives its rationale from the corporations concern for
refinancing. This is after they argue that, the ArrowDebreu-McKenzie model ignores a
fundamental need by firms to refinance their activities. Further the model downplays a lot
of the reasons mentioned above as the key reasons for managing liquidity. For instance,
capital structure is considered irrelevant (Miller & Modigliani, 1958), because firms
need not hoard cash as they can issue claims against the full value of the new
investments, and claimholders cannot gain by having firms engage in risk management
since reshuffling state contingent resources in a complete market does not affect the market
portfolio.In trying to reduce the probability of running out of cash, companies try to manage
liquidity
efficiently
by
planning
and
controlling
current
assets
and
current
liabilities(Eljelly, 2004). They do this in such a manner that eliminates the risk of the
inability to meet due short-term obligations, on one hand, and avoid excessive investment in
these assets, on the other. Also, from an operating point of view, working capital has
increasingly been looked at as a restraint on financial performance, since the assets do not
contribute to return on equity (Sanger, 2001).
Measures of Liquidity and Profitability
There are arguments for a cash conversion cycle approach to liquidity analysis. Some
common approaches to liquidity analysis used by financial analysts and financial
managers in the assessment of firm liquidity are static (Richard & Laughlin, 1980). The
various components of working capital investments do not enjoy the same life expectancy,
nor are they transformed into usable liquidity flows at the same speed. The current ratio, a
static view, is used by financial analysts as a key indicator of a firms liquidity position.
The ratio is commonly used because of its simplicity, extensive scholarly reference and
its intuitive appeal compared to other measures .If it is the protection of firms against
liquidity upsets when there are unanticipated discrepancies in the amount and timing of
operating cash inflows and outflows, then the use of total current asset coverage of
outstanding current liabilities can surely not be more reliable or superior to cash reserve
investments in combination with unused borrowing capacity.The acid test ratio was
created in response to the current ratios criticisms. More liquid assets are used in the
numerator of the formula to take into
liquidity attributes of current asset investments. For this reason inter-firm and inter-period
comparisons of current ratio statistics are of questionable value to the financial analyst.
For instance, increases in current assets of a lower liquidity standard in a period maybe
a sign of a deteriorating liquidity position rather than an improving position. In his 1968
work on the prediction of corporate bankruptcy, Altman picks a working capital measure of
liquidity over the current ratio and quick ratio. The working capital based ratio was a better
measure of liquidity and therefore showed greater statistical significance. Static measures of
liquidity have the inherent potential of misinterpreting the firms relative liquidity position
(Richard & Laughlin, 1980). The usefulness of both static liquidity indicators is limited by
their inability
transformation process with a firms working capital position. Rather than taking a going-
The study has taken into account only five years for comparative analysis.
Time and other resources have proved to be a constraint.
It has always not been possible to get the full information.
Since the study is based only on secondary data, so the reliability of
information may not be ensured.
No primary data is used for the study.
SECTION 3
A BRIEF INTRODUCTION TO TATA STEEL
this acquisition, Tata Steel got hold of two rolling mills, a 250k tones per year bar/wire rod
mill operated by SSE Steel Ltd and a 180k tonnes per year reinforcing bar mill operated by
Vinausteel Ltd.
Operations
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.[24]
Tata Steel primarily serves customers in the automotive, construction, consumer goods,
engineering, packaging, lifting and excavating, energy and power, aerospace, shipbuilding,
rail and defense and security sectors.
SAIL
TATA STEEL
RINL
OTHERS
22
19
53
Market Share
SAIL
TATA STEEL
RINL
OTHERS
PARTICULARS
SAIL
TATA
JSW
ESSAR
OTHES
(INCLUDIN
STEEL
STEEL
STEEL
G
IMPORTS)
Construction
11
6.3
4.3
1.6
76.8
Automotive
3.5
23.6
14.8
7.1
51
.2
1.7
3.3
69.3
4.2
27.4
7.7
43.1
7.5
10.4
81.8
Oil
&
gas,
17.6
water .3
transportation
Railway wagon
73.3
.35
23.2
White goods
4.8
25.4
7.3
13.5
49
Tube Making
36.5
16.3
15.9
Link
5.6
25.7
https://www.google.co.in/search?
q=market+share+of+tata+steel+in+indian+steel+industry&biw=1280&bih=699&tbm=is
ch&tbo=u&source=univ&sa=X&ved=0ahUKEwjs_teAkK7MAhWNcI4KHVzwBYwQs
AQISw#imgrc=nmksKX3d8do_RM%3A
SECTION 4
RESEARCH METHODOLOGY
DATA COLLECTION METHOD
TOOLS AND TECHNIQUIES FOR ANALYSIS
Current Ratio
The current ratio is the simplest and least strict ratio. Current assets are those that can
reasonably be converted to cash in one year.
Current Ratio = Current Assets / Current Liabilities
The acid-test or quick ratio is slightly more strict. It excludes inventories and other current
assets, which are not as liquid as cash and cash equivalents, accounts receivable and shortterm investments.
Cash Ratio
The cash ratio is the most exacting of the liquidity ratios, excluding accounts receivable as
well as inventories and other current assets. More than the current ratio or acid-test ratio, it
assess an entity's ability to stay solvent in the case of an emergency. Even highly profitable
companies can run into trouble if they do not have the liquidity to react to unforeseen events.
Cash Ratio = (Cash and Cash Equivalents + Short-Term Investments) / Current
Liabilities
For profitability analysis the following ratios are used.
Net sales is calculated by subtracting any returns or refunds from gross sales. Net
incomeequals total revenues minus total expenses and is usually the last number reported on
theincome statement.
Profit Margin Ratio = Net Income / Net sale or revenue
Gross Profit Margin Ratio is calculated by dividing gross profit by net sales.
Gross Profit Margin Ratio = Gross Profit/Net sale
To calculate return on investment, the benefits (or returns) of an investment are divided by
Total asset. The result can be expressed as a percentage or a ratio.
The return on capital employed measures the proportion of adjusted earnings to the amount of
capital and debt required for a business to function. For a company to remain in business
over the long term, its return on capital employed should be higher than its cost of capital;
otherwise, continuing operations gradually reduce the earnings available to shareholders.
Return On Capital Employed=Earnings before interest and taxes/Total assets - Current
liabilities
For analysis of the relationship between liquidity and profitability the following
statistical tools is used.
CORRELATION
Correlation is a statistical technique that can show whether and how strongly pairs of
variables are related. For example, height and weight are related; taller people tend to be
heavier than shorter people. The relationship isn't perfect. People of the same height vary in
weight, and you can easily think of two people you know where the shorter one is heavier
than the taller one. Nonetheless, the average weight of people 5'5'' is less than the average
weight of people 5'6'', and their average weight is less than that of people 5'7'', etc.
COMPARATIVE CHART
Comparative chart is used to present the liquidity and profitability ratios of various year of
TATA Steel.
SECTION 4
DATA ANALYSIS
INTERPETATIONS AND FINDINGS
RECOMMENDATION
Rs. In crores
1000.08
8042
491.46
478.59
1781.77
55.27
11849.17
34.88
5801.98
9111.52
1675.41
16623.79
Rs. In crores
2343.24
6007.81
770.81
961.16
1299.2
182.38
11564.6
43.69
8263.61
8671.67
1902.81
18881.78
Rs. In crores
434
5257.94
796.92
2192.36
2207.83
615.8
11504.85
70.94
6363.66
8509.79
1544.26
16488.65
Rs. In crores
1204.17
4858.99
904.08
3946.99
1829.25
76.09
12819.57
65.62
5883.92
8716.57
2172.38
16838.49
Rs. In crores
2999.79
3953.76
424.02
4138.78
6458.94
137.73
18113.02
149.13
4464.81
6262.1
2219.85
13095.89
Year
2015
2014
2013
2012
2011
Current assets
Current liabilities
Rs. In crores
11849.17
11564.6
11504.85
12819.57
18113.02
Rs. In crores
16623.79
18881.78
16488.65
16838.49
13095.89
Current Ratio
0.712783908
0.612474036
0.697743599
0.761325392
1.383107219
Current Ratio
1.6
1.38
1.4
1.2
1
0.8
0.71
0.61
0.6
0.7
Current Ratio
0.76
0.4
0.2
0
2015
2014
2013
2012
2011
Findings :- From above Table 2 and the chart we can see the current ratio of TATA Steel is
not good except 2011 though the idle current ratio is 2 but it is increasing as we compare it to
2014.
Table 3 :- Showing calculation of Quick ratio of TATA Steel For the Period of 2010-11 to
2014-15
Current
Year
2015
Current
assets
Inventories
Quick Assets
liabilities
Rs. In crores
11849.17
Rs. In crores
8042
Rs. In crores
3807.17
Rs. In crores
16623.79
Quick Ratio
0.22901938
2014
2013
2012
2011
11564.6
11504.85
12819.57
18113.02
6007.81
5757.94
4858.99
3953.76
5556.79
5746.91
7960.58
14159.26
18881.78
16488.65
16838.49
13095.89
0.29429376
0.34853733
0.47276092
1.08119876
Quick Ratio
1.2
1.08
1
0.8
Quick Ratio
0.6
0.47
0.4
0.29
0.23
0.35
0.2
0
2015
2014
2013
2012
2011
Findings :- From Table 3 and the above chart we can see that quick ratio of TATA Steel is not
good except the year 2011 so the company need to develop the quick ratio because it is a key
indicator of liquidity position of company. A quick ratio of 1 is seem to be idle.
Short
Term Cash
Cash
Loan
Balances
Assets
liabilities
Position
& Advances
Rs. In crores
Rs. In crores
Rs. In crores
Ratio
Rs. In crores
1781.77
1299.2
2207.83
1829.25
6458.94
2015
2014
2013
2012
2011
478.59
961.16
2192.36
3946.99
4138.78
2260.36
2260.36
4400.19
5776.24
10597.72
16623.79
18881.78
16488.65
16838.49
13095.89
(CPR)
0.1359714
0.11971117
0.26686175
0.34303789
0.80924015
CPR
0.9
0.81
0.8
0.7
0.6
CPR
0.5
0.4
0.34
0.27
0.3
0.2
0.14
0.12
2015
2014
0.1
0
2013
2012
2011
Findings :- From Table 4 and the above chart we can see that the Cash Position Ratio of
TATA Steel is very poor 2015 and it is decreasing as we compare it with 2011 but it is
improving as we see the CPR in the year of 2014.
Table 5 :- Showing calculation of Return on capital employed of TATA Steel For the
Period of 2010-11 to 2014-15
Year
Total Assets
Current
Capital
Net
Rs. In crores
liabilities
Employed
before
Rs. In crores
Rs.
crores
profit Return On
Capital
(%)
2015
2014
2013
2012
2011
115677.12
111040.41
101876.93
95802.99
89551.72
16623.79
18881.78
16488.65
16838.49
13095.89
99053.33
92158.63
85388.28
78964.5
76455.83
Rs. In crores
8508.89
9713.5
7836.6
9857.35
9776.85
8.590211
10.53998
9.177606
12.48327
12.78758
12.48
12
10
12.79
10.54
9.18
8.59
Return on Capital
Employed (%)
8
6
4
2
0
2015
2014
2013
2012
2011
Findings :- From the Above Table 5 and the chart we can see the return on capital employed
of TATA Steel is Constantly decreasing except 2014.
Table 6 :- Showing calculation of Net Profit Margin of TATA Steel For the Period of
2010-11 to 2014-15
Year
2015
2014
2013
2012
2011
Net
profit
Rs. In crores
6439.12
6412.19
5062.97
6696.42
6865.69
Rs. In crores
41785
41711.03
38199.43
33933.46
29396.35
Ratio (%)
15.41012325
15.37288818
13.25404594
19.73397349
23.35558666
Margin
23.36
19.73
20
15.41
15.37
15
13.25
Series 1
10
5
0
2015
2014
2013
2012
2011
Findings :- From the above Table 6 and the above chart we can see that the profit margin
ratio is decrease as we compare it with 2011 but it is increasing if we compare with 2013.
Table 7 :- Showing calculation of Return on Investment of TATA Steel For the Period of
2010-11 to 2014-15
Year
2015
2014
2013
2012
2011
Total Assets
Return
Rs. In crores
115677.12
111040.41
101876.93
95802.99
89551.72
Rs. In crores
6439.12
6412.19
5062.97
6696.42
6865.69
Investment
5.566459
5.774645
4.969692
6.989782
7.666732
on
Return on Investment
9
7.67
6.99
7
6
5.57
5.77
4.97
Return on Investment
4
3
2
1
0
2015
2014
2013
2012
2011
Findings :- From the above Table 7 and the chart it is cleared that the Return on Investment
of TATA Steel is constantly decreasing expect in the year 2014.
Table 8:- Showing All ratios of TATA Steel from FY 2010-11 to 2014-2015
Year
2015
2014
2013
2012
2011
Current
Quick
Ratio
Ratio
Capital
Margin
Investment
0.22901938
0.29429376
0.34853733
0.47276092
1.08119876
Employed
8.590211
10.53998
9.177606
12.48327
12.78758
Ratio
15.41012325
15.37288818
13.25404594
19.73397349
23.35558666
5.566459
5.774645
4.969692
6.989782
7.666732
0.712783908
0.612474036
0.697743599
0.761325392
1.383107219
CPR
0.1359714
0.11971117
0.26686175
0.34303789
0.80924015
Return On Net
Profit Return
on
Findings :- From the above Table 9 it is clear that the liquidity ratio of TATA Steel is very
positively related with Net Profit Margin of TATA Steel. Means to increase profit TATA Steel
have to increase its liquidity.
FINDINGS :I.
From Table 2 and the chart relating to this table we can see the current ratio of TATA
Steel is not good except 2011 though the idle current ratio is 2 but it is increasing as
we compare it to 2014. So the Company have to concentrate on this otherwise it may
II.
III.
seem to be idle.
From Table 4 and the chart relating to this table we can see that the Cash Position
Ratio of TATA Steel is very poor 2015 and it is decreasing as we compare it with 2011
IV.
V.
From the Table 6 and the chart relating to this table we can see that the profit margin
ratio is decrease as we compare it with 2011 but it is increasing if we compare with
VI.
2013.
From the above Table 7 and the chart it is cleared that the Return on Investment of
VII.
VIII.
RECOMMENDATION
The current ratio and quick ratio both are less than the standard norm (2:1). That
means the company may suffer for liquidity problem to meet the debt obligation on
time and to take the opportunity the company need focus on the above ratios.
In the current assets, inventory is more. The company should focus on it because
inventory is lees quick asset.
The cash position ratio is very low. To meet the contingencies in the business cash in
hand or cash at bank is necessary. So try to maintain the optimal level of cash in hand
or cash at bank.
The ROCE is very low and also it was fluctuating. So, try to increase the sales
revenue for maximizing profits so that the ROCE may increase.
SECTION 6
CONCLUSION
BIBILOGRAPHY
CONCLUSION
In this study only secondary data is collected for five years. The liquidity
position of a company is very important and it has a great impact on its
profitability. The main purpose of the project is to analysis the liquidity and
profitability of the company and their relationship. The detailed observations are
presented in the form of analysis in the previous chapter. The major liquidity and profitability
indicator of TATA Steel for the five year period in terms of ratios like current ratios,
quick ratio, CPR, Net profit margin ratio, Return on Investment are calculated
and so many datas used in this study. The study concludes by saying that the
performance of the financial performance of TATA Steel is decrease if we
compare it with 2011 but it is increasing form FY 2014 if we compare it with
previous year and the liquidity ratios are not good it is too far from optimum.
BIBILOGRAPHY
Amengor, E. C. (2010). Importance of Liquidity and Capital Adequacy to Commercial
Banks. A Paper Presented at Induction Ceremony of ACCE, UCC Campus
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