Balance Sheet for Tata Motors

Balance Sheet of Tata Motors ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Sources Of Funds
Total Share Capital 361.79 382.87 385.41 385.54 514.05
Equity Share Capital 361.79 382.87 385.41 385.54 514.05
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 3,749.60 5,127.81 6,458.39 7,428.45 11,855.15
Revaluation Reserves 0.00 26.39 25.95 25.51 25.07
Networth 4,111.39 5,537.07 6,869.75 7,839.50 12,394.27
Secured Loans 489.81 822.76 2,022.04 2,461.99 5,251.65
Unsecured Loans 2,005.61 2,114.08 1,987.10 3,818.53 7,913.91
Total Debt 2,495.42 2,936.84 4,009.14 6,280.52 13,165.56
Total Liabilities 6,606.81 8,473.91 10,878.89 14,120.02 25,559.83

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Application Of Funds
Gross Block 6,611.95 7,971.55 8,775.80 10,830.83 13,905.17
Less: Accum. Depreciation 3,454.28 4,401.51 4,894.54 5,443.52 6,259.90
Net Block 3,157.67 3,570.04 3,881.26 5,387.31 7,645.27
Capital Work in Progress 538.84 951.19 2,513.32 5,064.96 6,954.04
Investments 2,912.06 2,015.15 2,477.00 4,910.27 12,968.13
Inventories 1,601.36 2,012.24 2,500.95 2,421.83 2,229.81
Sundry Debtors 811.32 715.78 782.18 1,130.73 1,555.20
Cash and Bank Balance 345.26 327.66 535.78 750.14 638.17
Total Current Assets 2,757.94 3,055.68 3,818.91 4,302.70 4,423.18
Loans and Advances 2,831.16 5,964.61 6,208.53 4,831.36 5,909.75
Fixed Deposits 1,659.78 791.77 290.98 1,647.17 503.65
Total CA, Loans & Advances 7,248.88 9,812.06 10,318.42 10,781.23 10,836.58
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 6,142.74 6,673.61 6,956.88 10,040.37 10,968.95
Provisions 1,126.06 1,215.04 1,364.32 1,989.43 1,877.26
Total CL & Provisions 7,268.80 7,888.65 8,321.20 12,029.80 12,846.21
Net Current Assets -19.92 1,923.41 1,997.22 -1,248.57 -2,009.63
Miscellaneous Expenses 18.16 14.12 10.09 6.05 2.02
Total Assets 6,606.81 8,473.91 10,878.89 14,120.02 25,559.83

Contingent Liabilities 1,450.32 2,185.63 5,196.07 5,590.83 5,433.07

Book Value (Rs) 113.65 143.94 177.59 202.70 240.64

Profit and Loss account for Tata Motors

Profit & Loss account of Tata

------------------- in Rs. Cr. -------------------
Motors
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Income
20,262.6
Sales Turnover 23,490.55 31,089.69 33,123.54 28,538.20
1
Excise Duty 3,063.44 3,401.92 4,425.44 4,355.63 2,877.53
17,199.1
Net Sales 20,088.63 26,664.25 28,767.91 25,660.67
7
Other Income 403.98 852.41 1,114.38 734.17 921.29
Stock Adjustments 144.00 256.91 349.68 -40.48 -238.04
17,747.1
Total Income 21,197.95 28,128.31 29,461.60 26,343.92
5
Expenditure
12,245.2
Raw Materials 14,633.02 19,879.56 20,891.33 18,801.37
8
Power & Fuel Cost 237.81 258.51 327.41 325.19 304.94
Employee Cost 1,039.34 1,143.13 1,367.83 1,544.57 1,551.39
Other Manufacturing Expenses 592.64 671.31 872.95 904.95 866.65
Selling and Admin Expenses 890.21 1,061.07 1,505.23 2,197.49 1,652.31
Miscellaneous Expenses 620.27 740.99 1,051.49 964.78 1,438.89
Preoperative Exp Capitalised -282.43 -308.85 -577.05 -1,131.40 -916.02
15,343.1
Total Expenses 18,199.18 24,427.42 25,696.91 23,699.53
2

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Operating Profit 2,000.05 2,146.36 2,586.51 3,030.52 1,723.10

PBDIT 2,404.03 2,998.77 3,700.89 3,764.69 2,644.39
Interest 234.30 350.24 455.75 471.56 704.92
PBDT 2,169.73 2,648.53 3,245.14 3,293.13 1,939.47
Depreciation 450.16 520.94 586.29 652.31 874.54
Other Written Off 67.12 73.78 85.02 64.35 51.17
Profit Before Tax 1,652.45 2,053.81 2,573.83 2,576.47 1,013.76
Extra-ordinary items -1.54 0.00 -0.07 0.00 15.29
PBT (Post Extra-ord Items) 1,650.91 2,053.81 2,573.76 2,576.47 1,029.05
Tax 415.50 524.93 660.37 547.55 12.50
Reported Net Profit 1,236.95 1,528.88 1,913.46 2,028.92 1,001.26
Total Value Addition 3,097.84 3,566.16 4,547.86 4,805.58 4,898.16
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 452.19 497.94 578.07 578.43 311.61
Corporate Dividend Tax 63.42 69.84 98.25 81.25 34.09
Per share data (annualised)
Shares in issue (lakhs) 3,617.52 3,828.34 3,853.74 3,855.04 5,140.08
Earning Per Share (Rs) 34.19 39.94 49.65 52.63 19.48
Equity Dividend (%) 125.00 130.00 150.00 150.00 125.00
Book Value (Rs) 113.65 143.94 177.59 202.70 240.64
 RATIO ANALYSIS

Sr. Year Year

No. Ended ended
Ratios Formula Explanation
Mar0 Mar0
8 9
Higher the current ratio
better is the situation and
Current Assets/ the ideal value is 2:1.
Current
1. Current 0.64 0.44 Tata Motors’ current
ratio
Liabilities ratio is less than 1 which
indicates more liabilities
than assets.
A higher liquid ratio
indicates that there are
sufficient assets available
with the organisation
Liquid
Liquid which can be converted
2. assets/liquid 0.66 0.58
ratio in the form of cash
liabilities
almost immediately to
pay off those liabilities
which are to be paid off
almost immediately.
It indicates the capability
of organisation to
Fixed
achieve maximum sales
Assets Net sales/ fixed
3. 2.69 1.88 with the minimum
turnover assets
investment in fixed
ratio
assets. Higher the ratio,
the better.
4. Current Net sales/ 6.68 5.8 It indicates the capability
assets current assets of organisation to
turnover achieve maximum sales
ratio with the minimum
 investment in current
assets. Higher the ratio,
the better.
It indicates the capability
of organisation to
Working
achieve maximum sales
capital Net sales/
5. 5.68 3.68 with the minimum
turnover working capital
investment in working
ratio
capital. Higher the ratio,
the better.
It indicates the capability
of organisation to
Inventory/
Net achieve maximum sales
Stock
6. sales/Closing 3.52 4.60 with the minimum
turnover
inventory investment in inventory.
ratio
Higher the ratio, the
better.
It indicates the efficiency
of the organisation with
which the capital
Capital
Sales/capital employed is being
turnover 0.76 0.60
7. employed utilized. Higher the ratio,
ratio
the better.
Both these figures
indicate that the owners’
funds are exceeding the
Proprietary Fixed assets/
8. 0.54 0.60 fixed assets which
ratio owners’ fund
indicate that a part of
owners’ funds is invested
in the current assets also.
A low value of this ratio
Fixed in both cases indicates
Assets/Cap Fixed that a major portion of
9. ital assets*100/capit 32% 26% the long term funds are
employed al employed invested in current assets
ratio as compared to fixed
assets.
10. Interest Profits before 10.70 7.84 A high ratio as indicted
Coverage interest and by the 2 figures is
ratio taxes/ Interest favorable as it indicates
 the protection available
to the lenders of long
charges term capital in the form
of funds available to pay
the interest charges.
It gives indication about
(Net profit after the capability of Tata
taxes + Motors to meet the
Debt Depreciation + obligations of long term
service Interest on term borrowing. A very low
11. 0.47 0.35
Coverage loans)/(Interest value of ratio means
ratio on term loans + insufficient earning
Installments of capacity of organisation
term loans to meet the obligations of
long term borrowing.
A low value shown by
the 2 figures indicates
that this organisation is
not able to produce or
purchase at a low cost. It
Gross Gross profit * 15.28 16.10
12. can be increased by
profit ratio 100/net sales % %
either adjusting the sales
price or production cost
or by increasing volume
of products having high
gross profit margin.
It indicates that portion
of sales available to the
owner after considering
all types of expenses and
(Net profit after costs. The lower figures
Net profit
taxes) * 100/net 15.14 12.40 alongside indicate lower
13. ratio
sales % % profitability of the
business.
14. Operating (Manufacturing 83.52 81.16 A high ratio as seen
ratio cost of goods % % alongside indicates that
sold+ operating only a small margin of
expenses)*100/N sales is available to meet
et sales the expenses in the form
of interest, dividend and
 other non-operating
expenses. A lower value
is generally desirable.
It measures profitability
of investments in the
Return on Net profit * 36.13 26.87 firm. Higher value is
15.
Asset 100 /assets % % preferred which is not
the case as per figures
shown.
It measures profitability
(Net profit +
of capital employed in
Return on Interest on long
the firm. Higher value is
16. capital term 0.73 0.57
preferred and the
employed sources)/capital
situation of Mar08 was
employed
much better than Mar09.
It measures if the firm
has earned sufficient
Net profit after
returns for its
Return on taxes * 100/
shareholders or not.
17. Shareholde Total 0.14 0.08
Higher the ratio, the
rs’ funds shareholders’
better the situation which
funds
is not the case for Tata
Motors in both the years.
(Net profit after
taxes- preference It measures the profits
Earnings dividend)/ available to the equity
18. 52.63 19.48
per share Number of shareholders on a per
equity shares share basis.
outstanding
A higher capital to non-
Capital to current assets ratio
Owners equity/
non- indicates that it is easier
19. Non-current 3.51 4.22
current to meet the business' debt
assets
assets ratio and creditor
commitments.
20. Fixed costs Fixed costs/ 1.09 1.06 An increase in the fixed
to total Total assets costs to total assets ratio
assets may indicate higher
fixed charges, possibly
resulting in greater
instability in operations
and earnings.