Eic Analysis of Tata Steel

LUCKY BHAVINI B.COM(H)III-E ROLL NO.-247 GROUP NO.-E27 EIC epitome OF TATA STEEL ECONOMIC ANALYSIS: * The Financial market in the last 12 months has been explosive triggered by the subprime mortgage crisis in the US. This has adversely affected the liquidity and the risk perception of the international capital markets. Inflation has change magnitude around the World boosted by primary(prenominal)ly increase in food and energy prices. The real effective exchange post for the US buck has declined since mid-2007 as foreign investment funds in US bonds and equities has been dampened by reduced confidence in twain the liquidity of and the returns on such assets, weakening of US ontogeny prospects and interest rate cuts. The main counterpart to the decline of the dollar has been appreciation of the euro, the yen, and other floating currencies such as the Canadian dollar and some emerging economy currencies. Corus acquisition is being financed by a substantial amount of debt. This puts pressure on Tata brand names bottom line, and should the business environment deteriorate, the requirement to service this debt could restrain Tata Steel in its future investment and capacity expansion plans. In addition it could also restrain the Companys inorganic growth options.

* Due To Subprime Crisis in USA an subsequent tremor all along the world, curiously in developed market in Western europium make the vulnerable position of Corus even more riskier.UK, Germany, Netherlands the main market for Corus products are facing the fear for recession on negative growth. * The steel industry is highly cyclical, receptive to oecumenic economic conditions and reliant on the condition of a come in of other industries, including the automotive, appliance, construction and energy industries. If these industries experience a downturn, Tata Steel too would too take a hit, thus negatively impacting its rating. * Corus follows the policy of entering into long term supply... If you want to get to a full essay, order it on our website: Ordercustompaper.com

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