May-2015

COVER
STORY
COMMUNICATING VALUE TO THE
STAKE HOLDERS: A CASE STUDY
OF TATA STEEL COMPANY LTD.
The study finds that Tata Steel’s outlook is to mitigate
possible challenges and avail every opportunity. Longterm
steel demand is expected to be slightly better
off, driven by a steady construction sector due to the
collapse of the Eurozone economies
Dr. K. Kanaka Raju
Asst. Professor,
Andhra University
Tadepalligudem
THE value of an organization
depends
upon the number
of factors, financial or tangible
in nature and intangibles
like people, natural resources,
intellectual capital, markets
and competition etc. It is
easy to account of the financial
or tangibles, where as it
is difficult to measure the intangibles.
Then the concept
of integrated reporting was
emerged. It facilitates to an
organization to furnish the
information with a transparency
regarding utilization of
its resources and relationships
to generate, preserve and
grow value in short, medium
and long term. This information
is useful to investors to
manage risks and allocate resources
most efficiently.
Objectives of the Study :
After verifying the existing
literature no author was disclosed
the holistic approach
for integrated reporting for
this the following objectives
adopted.
1. To examine the integrated
reporting practices followed
by the Tata Steel Company
Ltd.
2. To offer a suitable suggestions
to have a holistic
approach or frame work to
adoption of integrated reporting
practices by the different
organizations.
Methodology of the
Study: The data collected
from the secondary sources
through the journals and
website of TATA Steel company
Ltd.
Case Study of Tata Steel
Company: The Tata Steel
Company adopts six step
procedure for integrated
reporting.
1.Organizational Overview
of Business Model:
The business of Tata Steel
spread across the India, Europe
and South-East Asia.
The EBITDA 11,698 crore
against 11,559 in previous
year, best performance in hot
metal, crude steel, saleable
steel production and sales, installation
of LD=3 furnace (1
million tonnes) ,introduction
of TATA Astrum for same
market, enhanced profit in
Ferro Alloys and minerals
division .The best performance
of Tubes division as
a SBU (Strategic Business
unit) increased capacity by
0.6 million tones in the next
5 years to reach to 1 million
tones, Green field steel
project in Odisha as a new
subsidiary of Tata Steel Odisha
Limited with an amount
of Rs 22 800 core, adopted
34 the MANAGEMENT ACCOUNTANT MAY 2015
www.icmai.in