A

PROJECT REPORT ON
LEGAL DIMENSIONS IN FINANCIAL MANAGEMENT
AT
TATA STEEL
SUBMITTED BY
HIYA RAKESH JAIN
ROLLNO- 2433
TYBBA-IB
UNDER THE GUIDANCE OF

SHREEDEVI RAVADI

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILMENT FOR THIRD YEAR

OF BACHELOR OF BUSINESS ADMINISTRATION (INTERNATIONAL BUSINESSS)
2024-25
THROUGH

BRACT’S
VISHWAKARMA COLLEGE OF ARTS, COMM& SCIENCE,PUNE

1
 ACKNOWLEDGEMENT

We are very much grateful to Dr. Shital Mantri (HoD Commerce) and Dr. Arun R.
Patil (Principal) without their support this research could not have been completed. We
sincerely thank to Project Guide SHREEDEVI RAVADI Her/his consent inspiration, motivati
on, guidance, encouragement and sympathetic attitude.
We express our deep gratitude and thanks to the owner, manager and all the employees for
providing me all necessary detail about the topic and helping me throughout my project.

Our special thanks to our teacher and friends for their support in all possible ways and I really
acknowledge them .Last but not least to all those who helped us indirectly towards completion
of this project.

Student Name: HIYA JAIN

Roll No:
Class & Sem: TYBBA-IB [5]
Seat No:

2
 DECLARATION

We the undersigned hereby declare that the project work entitled

“Process and purpose of setting up office and branches in foreign countries ’’ submitted to
the Savitribai Phule Pune University is the record on an original work done by us for the partial
fulfilment of:
Bachelor of Business Administration (International Business) Academic Year 202425 under
the guidance of SHREEDEVI RAVADI.

Findings and Conclusions are based on the material collected by me. This project has not been
submitted or published on any other College or Institutes before.

Student Name: HIYA JAIN

Roll No:
Class & Sem: TYBBA-IB
Seat No:
Date: -
Place: - PUNE

3
 EXECUTIVE SUMMARY

Companies set up branches and offices in foreign countries for a variety of reasons,
including:
 Market research: To research the market in the new country
 Promotion: To promote the parent company's products and services
 Liaison: To act as a liaison between the parent company and its customers
 Management: To make it easier to manage and carry out activities in the new
country
When setting up a branch office in a foreign country, companies should consider:
 Business climate: The business climate in the new country, including labor laws, tax
regulations, and cultural norms
 Logistics: The logistics of cross-border shipping, import/export protocols, and the
cost of foreign currency exchange
 Physical location: The physical location of the office, including the size of the space
Here are some other things to consider when setting up a branch office in a foreign
country:
 Compliance
The branch office must comply with all applicable laws and regulations in the new
country
 Eligibility criteria
The company must meet certain eligibility criteria, such as having a profit record and a
minimum net worth
 Application process
The company must follow a specific application process, which may include providing
certain documents and paying applicable fees
 Approval
The company may need approval from the government or other authorities in the new
country .

4
This is to certify that,
Mr./Mrs.HIYA JAIN

class has completed project

report on TATA STEEL
practical work in the
BBA / BBA (IB) (Sem III/V).
- Department of
Commerce.
As prescribed by the Savitribai
Phule Pune U
niversity, in the academic
Year 2024-2025

5
 INDEX

Sr. No Topic Page No

1 INTRODUCTION OF THE TOPIC

2 OBJECTIVES

3 COMPANY PROFILE

4 RESEARCH METHODOLOGY

5 DATA ANALYSIS AND DATA

INTERPRETATION

6 FINDINGS

7 RECOMMENDATIONS

8 CONCLUSIONS

9 BIBLIOGRAPHY

INTRODUCTION
6
Setting up a branch office in another country allows a company to expand its
operations, reach new markets, and establish a physical presence in a different
location.
There are many reasons businesses add a physical presence when they expand
operations offshore, such as in-person communication, Pros For A Foreign
Branch Office
Although the branch office is a subordinate entity to its parent company, it has the
right to conduct business activities independently.
It must be registered with the Commercial Registry in the country where it resides.
However, the primary legislation under which it is regulated is one of the parent
companies.
A branch is used for conducting business activities as well. As mentioned earlier, it
can secure new customers and use local resources.
Additionally, having branch offices in different countries improves the perception
of the business. Companies will use it to gain credibility in a respective market.
Branch offices generally have lower registration and operational costs. This is an
advantage when the investors’ business plans include a lower capital for the
expansion on a foreign market.
Managing offshore projects via a branch office is typically lower risk and less cost.
Plus, the winding up procedure is much more straightforward in the eventuality that
the branch office needs to be closed down, as is the case in Europe, for example.
The common advantages of opening a foreign office include:
Market Access
Opening a foreign office can provide direct access to new markets, allowing the
business to tap into new customer bases and increase its global reach.

Local Presence
A foreign office establishes a physical presence in the target market, enhancing the
company’s credibility and trust among local customers, suppliers, and partners.
Cultural Understanding

7
Operating a foreign office helps the business gain a deeper understanding of the
local culture, consumer behavior, and business practices, facilitating more effective
operations.
Reduced Trade Barriers
A local office can help navigate and overcome trade barriers, legal complexities,
and regulatory challenges that may be present in the foreign market.
Customer Support
Having a local office allows for better customer support and responsiveness, as the
company can address issues in real-time and tailor its services to local preferences.
Cost Savings
In some cases, setting up a foreign office may lead to cost savings, especially if the
cost of doing business in that location is lower than the cost of exporting goods or
services from the home country.
networking, accessing new customer bases, taking advantage of local resources or
markets, and navigating different regulatory environments.
The branch office is seen as a dependent structure on its parent company. Thus, any
decisions and liabilities of the branch fall under the parent company’s
responsibility.

8
 PURPOSE
There are many reasons why a company might want to set up a branch or subsidiary
in a foreign country, including tax benefits, access to local expertise, and a stronger
global reputation. However, there are also many things to consider, such as:
 Research
Before expanding into a new market, it's important to research the local market,
laws, and regulations.
 Structure
The right business structure is key to success. For example, a branch is a separate
organizational part of the parent company, but it doesn't have a separate legal
personality.
 Team
Building a strong, culturally diverse team is important. Hiring local branch
managers can provide insights into the local market and culture.
 Partnerships
Partnering with trustworthy suppliers and distributors can help the business
succeed.
 Taxes
Depending on the host country's tax regulations, there may be tax benefits or
opportunities for optimization.
 Reputation
A stronger global presence can help attract investors, partners, and clients.

9
 PROCESS
Setting up an office or branch in another country can involve a number of steps,
including:
 Researching the country
Understanding the laws, rules, and cuQuick expansion: Branch offices are
extensions of the parent company, so they can be set up quickly and easily.
Flexibility: Branch offices can provide more flexibility for international business.
Tax benefits: Branches often don't need to file a separate tax return, and there's
usually a tax agreement between the parent company and the foreign country.
Cost efficiency: Branches can be cost-efficient due to their size and small annual
turnover.
Understanding the local market: Branches can help companies understand the local
market and find a niche.
A branch office is different from a representative office, which is a beachhead that
allows company representatives to make local contacts. Representative offices can't
handle transactions or contractual matters, but branch offices can. stoms of the
country you want to do business in is important.
 Consulting with professionals
You can consult with a lawyer, tax advisor, or immigration specialist to help you
navigate the legal requirements.
 Obtaining approval
In some countries, you may need to obtain approval from a government agency
before you can set up an office or branch. For example, in India, you need to get
approval from the Reserve Bank of India (RBI) before you can set up a branch
office.
 Registering with the appropriate authorities
After getting approval, you may need to register your office or branch with the
Registrar of Companies (ROC) or other relevant authorities.
 Obtaining necessary registrations
10
You may need to obtain a PAN (Permanent Account Number), TAN (Tax
Deduction and Collection Account Number), or GST registration.
 Paying taxes
You may need to pay various taxes, such as corporate income tax and social
security taxes.
 Meeting other requirements
You may need to meet other requirements, such as appointing a local representative
or establishing a physical office and postal address success. For example, in the US,
a branch needs to register for an EIN (Employee Identification Number) through the
IRS website.
Design A Structure For Your Company
You must first understand the essential setup requirements in a foreign location.
Whether you’re just starting or want to expand internationally, you’ll need to
register your firm with a suitable corporate structure. Your company structure must
comply with corporate laws. Federal tax requirements depend on your company
structure. You can quickly and simply register your corporation online in New
York, Singapore, or anywhere else in the world. You can get your Singapore
company registration done in as little as 48 hours.
Get The Necessary Permits And Licenses For Your Company
Entrepreneurs and business owners must follow the regulations and legal
requirements when opening new offices in other states. Depending on the nature of
your firm and its location, licenses at the federal or provincial levels can be
necessary. Businesses engaging in activities governed by the federal government
must get the appropriate federal permits. It is essential to check the state’s specific
requirements in which you want to operate.
State And Local Taxes Should Be Paid In Advance
After legally setting up your overseas office, your attention should turn to abiding
by tax law rules. Managing taxes in multiple countries is an added layer of
complexity for multinational corporations. It’s easy to break the rules of a country’s
tax system because of the vast difference across states. Understanding the various
tax obligations is essential since income tax is not the only tax you must contribute.

11
Engaging a tax adviser where your firm operates is advisable to guarantee
compliance.
Find Out How To Navigate The Immigration System
The immigration procedure is another aspect of the law that a global business has to
pay attention to. Getting your company off the ground in a foreign country requires
frequent visits abroad. Maybe you’re even thinking of making a permanent transfer
to the country. Consulting with a lawyer specializing in immigration or citizenship
law is a great way to learn more about your rights and options. A smooth transition
into a new location for your company can be planned efficiently if you are familiar
with the immigration process and adhere to the correct procedures.
Be Vigilant To Trademark Infringement
Infringements of intellectual property like trademarks and copyrights are serious
matters that cannot be ignored. Each potential company owner should check the
availability of their desired trade name. Trademark and patent applications should
be filed in all countries where the business will operate. Doing so will provide you
comfort that your intellectual property is legally secured. Your business’s long-term
security and prosperity depend on your willingness to put in some initial effort to
avoid legal trouble.
The Bottom Line
When you have all the information you need before beginning the registration
process, establishing a company in a foreign nation is straightforward. With this
improved understanding of the most critical legal factors involved in managing a
global office, you should be able to avoid making any mistakes. Keep your firm
safe and thriving by following the law from the beginning.

12
Starting a business can seem like a lot, but following these steps will help make
sure you're successful:
1. Make a business plan.
2. Secure funding.
3. Surround yourself with the right people.
4. Follow the right legal procedures.
5. Establish a location.
6. Develop a marketing plan.
7. Build your customer base.
8. Plan to change.

13
14
 LAWS

When setting up a business in a foreign country, you'll need to comply with a

variety of laws, including:
 Company registration
You'll need to register your company in the country where you want to operate.
 Labor laws
You'll need to comply with labor laws that protect the rights and safety of your
employees. These laws may cover topics such as fair wages, hours, healthcare, and
worksite safety.
 Privacy laws
You'll need to ensure that any overseas entities you share private information with
meet the expectations for handling and disclosing data overseas.
 Tax regulations
You'll need to comply with the tax regulations of the country where you're
operating.
 Intellectual property laws
You'll need to comply with the intellectual property laws of the country where
you're operating.
 Environmental regulations
You'll need to comply with the environmental regulations of the country where
you're operating.
You should also conduct due diligence before investing in a foreign country and act
in accordance with the host state's domestic laws.

15
16
 OBJECTIVES

 Entering new markets

 Branch offices allow companies to quickly and easily start trading in new
areas.
 Increasing visibility
 A physical presence in a new market can increase a company's visibility
among local customers and business partners.
 Understanding local markets
 Branch offices can help companies better understand local customer
preferences and market dynamics.
 Reducing risk
 Branch offices can help reduce the risk of doing business in a new country by
allowing companies to test products in new markets.
 Maintaining control
 The parent company retains complete ownership and control over the branch
office, which allows for consistent implementation of corporate policies.

17
 TATA STEEL

Tata Steel Limited is an Indian multinational steel-making company, based

in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra. It is a
part of the Tata Group.
Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata
Steel is among the largest steel producing companies in the world, with an
annual crude steel capacity of 35 million tonnes. It is one of the world's most
geographically diversified steel producers, with operations and commercial
presence across the world. The group (excluding SEA operations) recorded a
consolidated turnover of US$31 billion in the financial year ending 31 March
2023. It is the largest steel company in India (measured by domestic
production) with an annual capacity of 21.6 million tonnes after Steel
Authority of India Ltd. (SAIL).[4][5] Tata Steel, SAIL, and Jindal Steel and
Power, are the only three Indian steel companies that have captive iron-ore
mines, which gives the three companies price advantages.[6]
Tata Steel operates in 26 countries with key operations in India, the
Netherlands, and the United Kingdom, and employs around 80,500 people.
[7]
Its largest plant (10 MTPA capacity) is located in Jamshedpur, Jharkhand.
In 2007, Tata Steel acquired the UK-based steel maker Corus.[8][7] It was
ranked 486th in the 2014 Fortune Global 500 ranking of the world's biggest
corporations.[9] It was the seventh most valuable Indian brand of 2013
according to Brand Finance.[10][11][12]
Tata Steel was listed amongst India's Best Workplaces in Manufacturing by
Great Place to Work for the fifth time in 2022.
about welfare
Tata Steel was among the first Indian companies to provide various labour welfare
benefits, such as eight-hour workdays since 1912, free medical care since 1915,
school facilities for the children of employees since 1917, paid time off since 1920,
formation of a provident fund and accident compensation in 1920, vocational
training since 1921, maternity benefits since 1928, profit sharing bonuses since
1934, and retiring gratuity since 1937.[23]
Expansions
18
NatSteel in 2004: Tata Steel agreed to acquire the steel making operations of the
Singapore-based NatSteel for $486.4 million in cash.[24] NatSteel had ended 2003
with turnover of $1.4 billion and a profit before tax of $47 million.[24] The steel
businesses of NatSteel would be run by the company through a wholly owned
subsidiary called Natsteel Asia Pvt. Ltd.[24] The acquisition was completed in
February 2005.[25][26] At the time of acquisition, NatSteel had a capacity of about
2 million tonnes per annum of finished steel.

Tata Steel Limited

Formerly Tata Iron and Steel Company

Limited (TISCo)

Company type Public

Traded as  BSE: 500470

 NSE: TATASTEEL
 BSE SENSEX constituent
 NSE NIFTY 50 constituent

ISIN INE081A01020

Industry Steel
Iron

Founded 26 August 1907; 117 years

ago at Jamshedpur, Jharkhand,
India

Founders Jamsetji Tata

Dorabji Tata

Headquarters Mumbai, Maharashtra, India[1]

Area served Worldwide

Key people  T. V. Narendran

19
 (CEO & Managing Director)
 Koushik Chatterjee
(CFO)[2]

Products Steel
Long steel products
Structural steel
Wire products
Steel casing pipes
Household goods

Revenue ₹230,980 crore (US$28 billion)

(2024)[3]

Operating ₹6,667 crore (US$800 million)

income (2024)[3]

Net income ₹−4,910 crore (US$−590 million)

(2024)[3]

Total assets ₹273,424 crore (US$33 billion)

(2024)[3]

Total equity ₹92,433 crore (US$11 billion)

(2024)[3]

Number of 78,321 (2024)[3]

employees

Parent Tata Group

Subsidiaries Tata Steel UK

Tata Steel Netherlands
Tata Steel Thailand
Jamshedpur FC
Tata Robins Fraser Ltd.
Mjunction

Website

COMPANY PROFILE

We touch the lives of millions of people across the world every day with the
steel that we produce. And it is highly likely that Tata Steel has affected your
20
life today, though you may not know it.

From the vehicle you drive, to the house you live in; from the bridges you
cross, to the hand tools that you use, we strive to deliver unparalleled quality
through our customised value-added solutions to make your life easier.

This is made possible by our commitment to a culture of continuous

improvement, through which we drive operational excellence in processes,
products and people.

Tata Steel, with an annual crude steel capacity of 35 million tonnes per annum
(MnTPA), is one of the world’s most geographically diversified steel
producers. We are one of the few steel operations that are fully integrated –
from mining to the manufacturing and marketing of finished products.

Continuous improvement in our product and service portfolio, along with

success in value creating initiatives for customers, allows us to serve global
growth markets. Today, we have our operations and commercial presence
across the world. A Great Place to Work-CertifiedTM organisation, Tata Steel,
together with its subsidiaries, associates, and joint ventures, is spread across
five continents with an employee base of over 77,000. The group recorded a
consolidated turnover of INR 2,43,353 crore in the financial year ending
March 31, 2023.

Our Raw Material operations are spread across India and Canada which help
us to be self-sufficient in steel production. Key manufacturing functions are
performed by the raw materials and iron-making groups, while Shared
Services provides maintenance support for a smooth production. In India, our
downstream business activities are structured into strategic business units
such as Ferro-Alloys and Minerals, Tubes, Wires, Bearings, Agrico, Industrial
By-products Management & Tata Growth Shop.

21
INDIA
Tata Steel was established in India as Asia’s first integrated private steel
company in 1907. With this, we also developed India’s first industrial city at
Jamshedpur. Today, we are among the leading global steel companies. Our
annual crude steel capacity across Indian operations is nearly 20 MnTPA and
we registered a turnover of INR 1,37,030 crore in FY23. We also set up our
second greenfield steel plant of 3 MnTPA in the eastern state of Odisha in
2016; the expansion to 8 MnTPA in currently underway. We possess and
operate captive mines that help us maintain cost- competitiveness and
production efficiencies through an uninterrupted supply of raw material. This
is how we ensure that we remain the lowest cost producer of steel in Asia.
The Indian product portfolio is divided into four segments – Automotive and
Special Products; Industrial Products, Projects and Exports; Branded Products

22
and Retail; and Services and Solutions. The Company supplies hot-rolled,
cold-rolled, galvanised, branded solution offerings and more.

EUROPE
Tata Steel is one of the largest steel producers in Europe with a crude steel
production capacity of over 12 MnTPA. We established our presence in the
23
European continent after acquiring Corus in 2007. The manufacturing
facilities in Europe comprise primary steel-making facilities in the
Netherlands and the United Kingdom, with downstream operations in the
Netherlands, the United Kingdom, Germany, France, Belgium, Sweden, and
Turkey. The European operations produce a wide range of high-quality
quality strip steel products for demanding markets such as constructive

engineering.:
SOUTH-EAST ASIA
In 2015, we acquired a majority stake in Thailand-based steelmaker
Millennium Steel, which strengthened our South-East Asian operations. is the
largest and most diverse long steel manufacturer in Thailand using recyclable
steel scrap as raw material. The product range includes High Tensile Rebars,
ready to use Cut & Bend products, light structurals, and specialty wire rods
for making Tire Cord, Tire bead, Wire Ropes, and stick electrodes.

Overview of the group

24
 There are 29 publicly listed Tata enterprises, which include Tata Steel, Tata Motors, Tata
Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata
Teleservices, Titan, Tata Communications and Indian Hotels. The group has a combined
market capitalisation of around $123 bn (as on March 31, 2020).
 Tata companies have made significant investments in different geographies. With our ever-
increasing global footprint, we are now reaching out to customers in the farthest corners of
the world.
 We touch upon lives across the globe and have an employee strength of over 750,000,
representing the rock-solid company that we are.
 Several Tata group companies have achieved leadership positions globally in their areas of
operation.

The Tata group's value system directs the growth and business of all sectors
we operate in. Two-thirds of the equity of Tata Sons, the Tata group holding
company, is held by philanthropic Trusts that have created national
institutions for science and technology, medical research, social studies,
and the performing arts.

Cutting-edge innovation, a stringent focus on quality, sustainable operations

and business excellence are the hallmarks of the trust the Tata name is best
recognised for.

VISION
We aspire to be the global steel industry benchmark for
Value Creation and Corporate Citizenship.
We make the difference through:

25
  Our People
Fostering teamwork, nurturing talent, enhancing leadership capability and acting with pace,
pride and passion

 Our Offerings
Becoming the supplier of choice, delivering premium products and services, and creating value
for our customers

 Our Conduct
Providing a safe workplace, respecting the environment, caring for our communities and
demonstrating high ethical standards

 Our Policies
In adherence to the Tata Code of Conduct, Tata Steel’s policies pertain to active sets of
principles in different areas of operation that help bring uniformity in processes by clearly
defining the company’s approach

 Our Innovative Approach

26
 Developing leading-edge solutions in technology, processes and products

MISSION
Consistent with the vision and values of the founder
Jamsetji Tata, Tata Steel strives to strengthen India’s
industrial base through effective utilisation of staff and
materials. The means envisaged to achieve this are
cutting-edge technology and high productivity, consistent
with modern management practices.

Tata Steel recognises that while honesty and integrity are

essential ingredients of a strong and stable enterprise,
profitability provides the main spark for economic activity.

Overall, the Company seeks to scale the heights of

excellence in all it does in an atmosphere free from fear,
and thereby reaffirms its faith in democratic values.

27
 RESEARCH METHODOLOGY

What Is a Branch Office?

A branch office is a location, other than the main office, where a business is conducted. Most
branch offices consist of smaller divisions of different aspects of the company such as human
resources, marketing, and accounting. A branch office will typically have a branch
manager who will report directly to, and answer to, a management member at the main office.

How a Branch Office Works

Branch offices are useful in that they allow many of the client-specific administrative
considerations to be conducted closest to clients. For example, Starbucks has branch offices to
better serve its retail stores' district managers in a more cost-effective manner. They can also
cater to and be more informed about the needs of specific locations, rolling out location-
specific items or adjusting staff.

KEY TAKEAWAYS

 A branch office is a useful way for large companies to satisfy customer needs for face-
to-face interaction.
 A branch office might consist of a single individual or it could be staffed, depending on
the needs of the business.
 In densely-populated urban centers, it’s not uncommon to see several branches within
proximity to one another.
 In more rural areas, it may make sense to operate fewer branches which are further apart.
There’s no universal model a branch office setup may take on, but many are located based on
geographic need. Many customers may prefer a local representative they can call on rather
readily and, in more populated urban centers, it’s not uncommon to see many branches within
proximity to one another. This is most common when considering service-based entities such
as chain restaurants, banks, and retailers. In rural areas with less dense populations, branch
offices are likely to be scattered farther apart.

A branch office may include a single representative, or it could be staffed with many
individuals based on business need. The term "pop-up" refers to the fact that the office or store
has a very short-term duration. It can be there one week and gone the next. Halloween costume
stores are an example.

The “pop-up” shop is a fairly common event for retail and other event-driven commerce
opportunities. In the future, it’s not unthinkable that financial service providers will use a pop-

28
up model to quickly deploy temporary branch locations to meet the needs of an on-demand
marketplace.

Research and Development (R&D) Expenses: Definition and Example

Research and development (R&D) expenses are associated with creating new
products or services, and a company may deduct them on its tax return.
more
Purchase-to-Pay (P2P): Definition, Process, Steps, and Benefits
Purchase-to-pay is an integrated business system that automates a company's entire
goods and services purchasing process, from requisition to vendor payment.
more
Greenfield Investment Definition
In a greenfield investment, a parent company creates a new operation in a foreign
country from the ground up.
more
EBITDAR: Meaning, Formula & Calculations, Example, Pros/Cons
EBITDAR—an acronym for earnings before interest, taxes, depreciation,
amortization, and restructuring or rent costs—is a non-GAAP measure of a
company's financial performance.
more
Absolute Auction: What It Is, How It Works, Example
An absolute auction is a type of auction where the sale is awarded to the highest
bidder. Absolute auctions do not have a reserve price, which sets a minimum
required bid for the item to be sold.
When researching the purpose and process of companies setting up branches and
offices in foreign countries, you can consider factors such as:
 Legal presence
The type of legal presence a company chooses, such as a representative office,
branch, or subsidiary, can have significant consequences for taxation, liability,
compliance, and operating costs.
 Regulatory framework
A liberal regulatory framework can be important for attracting foreign institutions
to a country.
 Location
Branch offices are often located based on geographic need, such as in urban centers
where customers may prefer a local representative.
 Track record
29
The Reserve Bank of India (RBI) considers a company's track record when
sanctioning branch offices. For example, a branch office must have a profit-making
track record in the home country for the five financial years immediately preceding
the application.
 Net worth
The RBI also considers a company's net worth, which is the total of paid-up capital
and free reserves, less intangible assets. For example, a branch office must have a
net worth of at least USD 100,000 or its equivalent.
 Application process
To establish a branch or liaison office in India, a foreign entity must:
1. Complete the form FNC
2. Submit the form FNC and associated documents to the RBI
3. Submit the application to the AD Category - I bank designated by the
applicant

DATA ANALYSIS AND DATA INTERPRETATION

30
 TATA STEEL 2022-23 Annual Report Analysis
TATA STEEL has announced its results for the year ended March 2023. Let
us have a look at the detailed performance review of the company during
FY22-23.
TATA STEEL Income Statement Analysis
 Operating income during the year fell 0.2% on a year-on-year (YoY) basis.
 The company's operating profit decreased by 48.8% YoY during the fiscal.
Operating profit margins witnessed a fall and stood at 13.5% in FY23 as
against 26.2% in FY22.
 Depreciation charges increased by 2.6% and finance costs increased by 15.3%
YoY, respectively.
 Other income grew by 37.7% YoY.
 Net profit for the year declined by 80.7% YoY.
 Net profit margins during the year declined from 17.1% in FY22 to 3.3% in
FY23.
TATA STEEL Income Statement 2022-23

12 12 %
No. of Mths Year
Mar- Mar- Chan
Ending
22* 23* ge

R
2,439,5 2,433,5
Net Sales s -0.2%
92 27
m

R
Other
s 7,849 10,811 37.7%
income
m

R
Total 2,447,4 2,444,3
s -0.1%
Revenues 41 37
m

Gross R 640,051 327,880 -

profit s 48.8%

31
 m

R
Depreciati
s 91,009 93,352 2.6%
on
m

R
Interest s 54,622 62,987 15.3%
m

R
Profit -
s 502,269 182,351
before tax 63.7%
m

R
Tax s 84,776 101,598 19.8%
m

R
Profit after -
s 417,493 80,754
tax 80.7%
m

Gross
profit % 26.2 13.5
margin

Effective
% 16.9 55.7
tax rate

Net profit
% 17.1 3.3
margin
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster

32
 Here: 3 Value Rich Stocks
TATA STEEL Balance Sheet Analysis
 The company's current liabilities during FY23 stood at Rs 973 billion as
compared to Rs 904 billion in FY22, thereby witnessing an increase of 7.6%.
 Long-term debt stood at Rs 514 billion as compared to Rs 448 billion during
FY22, a growth of 14.9%.
 Current assets fell 6% and stood at Rs 866 billion, while fixed assets rose 5%
and stood at Rs 1,987 billion .
 Overall, the total assets and liabilities for FY23 stood at Rs 2,854 billion as
against Rs 2,824 billion during FY22, thereby witnessing a growth of 1%.
TATA STEEL Balance Sheet as on March 2023
No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change

Networth Rs m 1,144,430 1,030,821 -9.9

Current Liabilities Rs m 903,969 972,951 7.6

Long-term Debt Rs m 447,641 514,463 14.9

Total Liabilities Rs m 2,824,217 2,853,958 1.1

Current assets Rs m 922,561 866,061 -6.1

Fixed Assets Rs m 1,898,651 1,987,302 4.7

Total Assets Rs m 2,824,217 2,853,958 1.1

33
34
 FINDINGS

10 Essential Steps for Setting Up a Successful Business Abroad

Business Setup Worldwide Services FZE

Business Setup Worldwide Services FZE
Assisting Business Minds To Build Their Dream Company Into Reality
Without Borders.
Published Jun 27, 2023
+ Follow
Wondering how to start a business abroad? Starting a business abroad requires
careful planning and execution. For that, you have to conduct thorough
market research and planning. Once you are planning well, you can
successfully start your dream venture. Here are a few essential steps listed for
your better understanding.
Research the Market
The first step for setting up a business abroad is to conduct thorough research
to understand the local market. While conducting thorough research, you can
check out the competitors. Also, undergo common research on the offer price
and the other details in the present market.
Select a Location
After conducting thorough market research, choose a location that suits your
business goals and budget.
Choose Your Legal Structure
Once you find an apt location, decide on the legal structure that best suits your
business.
Select a Unique Name
After finalizing the legal structure, choose a unique name for your business.
Implement Marketing Strategies
After choosing the name, create marketing strategies for branding,
advertising, and public relations.

35
Monitor and Evaluate
Continuously monitor and evaluate your business operations to ensure you
meet your objectives. Then, adjust your strategies to remain competitive and
sustainable in the foreign market.
Obtain Licenses and Permits
After finalizing the legal structure, obtain the licenses and permits from the
respective authority.
Hire a Team
Once the licenses and permits are finalized, hire a team to set up your
business abroad.
Obtain Necessary Visas
Once you hire the team, the next thing to be considered is to obtain the
necessary visas for starting a business abroad.
Open a Corporate Bank Account
Once the other formalities are done, then open a corporate bank account.
Unfortunately, opening a business bank account is sometimes complicated. In
order to overcome that, you can seek assistance from top business setup
consultants from Business Setup Worldwide.
Henceforth by following the essential steps, you can increase your chances of
opening a business abroad successfully.

36
Opening a business in a new country comes with its own set of unique challenges,
from cultural differences to compliance issues and everything in between.

A stark reality for companies operating in today’s economic environment is the need
– or opportunity, rather – to establish an international presence in the marketplace.
This means, of course, starting a business in another country.

There are different motivations for such an expansion. Perhaps there’s a strong
market or local talent base that you want to tap into. Or, perhaps, there’s a steady
stream of import/export happening between your company’s location and that other
location, and you decide it might be more cost-effective to simply put boots on the
ground there.

Whatever your reason for it, there are a few things you need to keep top of mind
when opening a business in a foreign country. We asked employers who’ve been
there and done that, and pulled together five main takeaways for you based on what
they had to say:

37
1. Know the cultural norms
This may be obvious, but it bears repeating: doing things the way you do things in
your own country won’t always mesh well with the cultural norms in your new office.

People work together differently

Charlie Marchant, a general manager at Exposure Ninja, a UK-based digital

marketing agency, talked about her experiences working with employees based in
Asia. As she says, those employees tend to avoid asking questions to managers
and are more indirect in sharing their feedback and concerns.

“In comparison,” Charlie says, “our British and European teams are much more
likely – and this is a behaviour we encourage – to question and [give] feedback to
the management team.”

To a lesser extent, she pointed out cultural differences in the way American and
British colleagues work together.

“Often in American culture and schools, you’re rewarded for speaking up and
sharing your opinions and ideas, even if you may not necessarily have new insights
to add. Whereas, in British culture, we tend to be more introverted and quieter with
our opinions in group settings preferring to [share] feedback more openly in smaller
groups or one-on-one.”

Charlie noted that none of these are right or wrong, or better or worse. It’s more
important, she adds, “to understand the nuances of their team member’s
communication and ways of working to ensure they’re getting the feedback and
input they need from them, and that they feel confident and comfortable [giving it].”

Yuval Shalev, currently co-founder and CRO of Hunterz, has an extensive track
record in penetrating new markets and territories across Europe, the Middle East,
and Africa in previous capacities. One such instance called for expansion to
Romania, where Yuval noted the stark differences in managerial culture, which led
to issues between teams – listing examples such as micromanagement and
favoritism. While those aren’t necessarily indicative of Romanian culture, Yuval’s
challenge was to remedy that without looking like his company was trying to “fix” the
culture.

38
His solution in the end was to standardize operating procedures across cultures, but
more so, train staff to communicate performance feedback differently: “Romanian
culture is proud and steeped in tradition so any issues had to be addressed
carefully and diplomatically. We shifted to a constructive criticism format to foster a
positive, productive workspace.”

Expand your reach with localized experiences

Growing abroad? Targeting new markets at home? Tap into the wider talent pool by
recruiting candidates in their native languages. Try Workable's language kits today!

Hire globally

Local values differ a little – or a lot

Polly Kay, currently a marketing manager at UK-based blinds manufacturer English

Blinds, made what she called “some major errors” in establishing a previous
company’s presence in the Middle East.

“My greatest personal mistake involved picking one of our most popular product
lines in the US to offer to our Dubai audience – a branded product featuring a
cartoon pig. I knew that the largely Muslim Dubai community didn’t eat pork,
obviously, [but] it never occurred to me that this would also translate as not wanting
to have anything to do with pigs in general, including children’s toys!”

“I was then left with two shipping containers’ worth of stock that was worthless
within the target market, and that I had to offload across more appropriate areas of
the company serving other markets.”

Kristina McDougall who works at Artemis Canada Inc. in recruiting for American
startups expanding to Canada, is quick to remind readers of the nuanced
differences between the two countries beyond their obvious similarities in culture
and language.

In Canada, Kristina says, “[there is] a sense of collaboration and mutual success
that can be a surprise for tech companies based in Silicon Valley.”
She adds: “Canadian tech companies typically help each other, working together to
compete with global companies.”

39
This also impacts recruitment, making it a “delicate business”, Kristina says. “One of
the things that foreign-owned companies are surprised with is the need to be an
active part of this community. Giving back through participation in local philanthropy
and arts and culture and also lifting up the local startup and tech community, with
education oriented events and mentoring, will help these companies to be
embraced.”

Kristina also warns of aggressive recruitment which may rub Canadians the wrong
way: “Companies need to consider how they are developing the local skill base and
also avoid overtly predatory practices. Targeting entire dev teams or blatantly
offering inflated salaries that would upset the local ecosystem would make you
appear a parasite.”

However large or small the cultural differences are, do your homework and learn
about what works and what doesn’t work in the new environment you’re about to
operate in. It’s no accident that locals appreciate it when you make the effort to work
with them in their “language” – be that in words, gestures, culture, gesticulations,
feedback, commentary, conflict, or anything else.

Employee motivations count no matter what

One thing remains consistent – people are people everywhere. They’re motivated
by many of the same things regardless of background, culture, language, etc. This
includes benefits, perks and other potential motivators in the workplace.

Yuval noted that stock options and tools for career development are effective.
“Good employees are interested in growing, so I encouraged them to move
between departments. […] We adjusted salaries to the highest tier of the local
market rate and made an effort to understand cultural norms.”

RECOMMENDATION
40
As of September 2024, some recommendations for Tata Steel include:
JM Financial: Buy rating with a target price of Rs 190
Antique Stock Broking: Buy rating with a target price of Rs 180
Motilal Oswal: Neutral rating with a target price of Rs 180
Equitypandit: Continue to hold long positions with a daily closing stop loss of Rs
155
Tata Steel is a global steel company with a presence across the world. Some of its
recent developments include:
In 2022, Tata Steel split its face value from Rs 10 to Rs 1 in a 1:10 ratio.
In 2024, Tata Steel turned ex-dividend for Rs 3.60 per share for FY24.
In January 2024, all panchayats and blocks of Keonjhar district were declared
child labor-free as a result of Tata Steel's education program.
Tata Steel's MANSI+ program reached 3 million households in East Singhbhum,
West Singhbhum, and Seraikela Kharsawan.
Tata Steel will continue to allocate around ₹10,000 crore a year for capital
expenditure to expand its production capacity to 40 million tons per annum (mtpa)
by 2030, N Chandrasekaran, chairman of Tata Sons Limited said at Tata Steel's
annual general meeting on Monday.

41
 CONCLUSIONS
Tata Steel is a global steel company with a history of innovation, sustainability, and
excellence. Here are some conclusions about Tata Steel:
 Industry leader
Tata Steel is a leader in the global steel industry, with operations in 26 countries
and a strong financial performance.
 Commitment to sustainability
Tata Steel is committed to sustainability and innovation, and is well-positioned to
navigate the challenges of the steel industry.
 Strong performance in 2022-2023
Tata Steel had a record-breaking operational performance in India in 2022-2023,
with the highest-ever annual production and deliveries.
 Global reach
Tata Steel has a strong presence both online and offline, with a global reach that
goes beyond its native nation.
 Decarbonization
Tata Steel is working on decarbonization at its Ijmuiden plant, with one blast
furnace to be replaced before 2030.
 Potential for growth
Tata Steel's recent 52-week high and strong performance in the market showcase its
potential for growth and stability.
In conclusion, Tata Steel's recent 52-week high and strong performance in the
market showcase its potential for growth and stability. With a 'Hold'
recommendation from MarketsMOJO and its impressive 1-year performance, Tata
Steel continues to be a top player in the iron and steel industry.
Tata Steel was established in India as Asia's first integrated private steel company in
1907. With this, we also developed India's first industrial city at Jamshedpur.
Today, we are among the leading global steel companies.
Overview of the group
 There are 29 publicly listed Tata enterprises, which include Tata Steel, Tata
Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global
Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.
The group has a combined market capitalisation of around $123 bn (as on
March 31, 2020).

42
  Tata companies have made significant investments in different geographies.
With our ever-increasing global footprint, we are now reaching out to
customers in the farthest corners of the world.
 We touch upon lives across the globe and have an employee strength of over
750,000, representing the rock-solid company that we are.
 Several Tata group companies have achieved leadership positions globally in
their areas of operation.

The Tata group's value system directs the growth and business of all sectors we
operate in. Two-thirds of the equity of Tata Sons, the Tata group holding company,
is held by philanthropic Trusts that have created national institutions for science and
technology, medical research, social studies, and the performing arts.
Cutting-edge innovation, a stringent focus on quality, sustainable operations and
business excellence are the hallmarks of the trust the Tata name is best recognised
for.

43
 BIBLIOGRAPHY

Author’s last name, first name. Book title. Additional information. City of
publication: Publishing company, publication date. Entries illustrating variations on
this format are listed below. A Book by One Author 1. Boorstin, Daniel J. The
Creators: A History of the Heroes of the Imagination. New York: Random, 1992.
Two or More Books by the Same Author 2. Garreau, Joel. Edge City: Life on the
New Frontier. New York: Doubleday, 1991. 3. ---. The Nine Nations of North
America. Boston: Houghton, 1981. A Book by Two or Three Authors 4. Atwan,
Robert, Donald McQuade, and John W. Wright. Edsels, Luckies, and Frigidaires:
Advertising the American Way. New York: Dell, 1979. A Signed Article from a
Daily Newspaper 5. Barringer, Felicity. “Where Many Elderly Live, Signs of the
Future.” New York

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THANK
You

HIYA JAIN
TYBBA-IB
45