Project Title
Name of the Company
Section
Group no
Group Members
(Name, Section & Roll No)
Cost Analysis And Cost Estimations Based On Cost Behaviour
Tata Motors Limited
08
Aman Kumar - M20231150
Rishi Sarawgi - M20231145
Sapna Jinodiya - M20232145
Vishal Srivastava - N20232082
ehaviour
Objective of the Project:
1) To learn cost analysis and estimations based on cost beahovior.
2) To understand different cost drivers and cost beahoviors.
Methodology
1) Going through Annual Reports of Chosen Company for last 4 years.
2) Analysing and populating the Income Statement and Balance Sheet in Excel for analysis.
3) Identifying each cost's driver and behaviour.
Brief Synopsis about the Company
(cover all possibel information about the company which will help the reader to get an overview)
Name of company: Tata Motors
Nature of products & services: Tata Commercial Vehicles, Tata
Passenger Vehicles, Jaguar Land Rover and Vehicle Financing
Industry which the company belongs to: Automotive Operations
Name of key persons (like promoters): Shailesh Chandra, Rajendra Petkar, Natarajan Chandrasekaran, Ravindra Kumar G.P
No of years of existence: 78
No of locations present: 18 States
Main competitors : AUDI AG, Ford Motor Company, General Motors Company, Mahindra & Mahindra Limited
Any other relevant key information:
Name of Company: Tata Motors Limited
Income & Expenditure ( Last 4 years) Unit of measurement : in c
Particulars 2022-23
Income
Revenue from operations 65298.84
Other operating revenue 458.49
Total revenue from operations 65757.33
other income 820.94
Total Income 66,578.27
Expenditure
Cost of materials consumed 42226.81
Purchases of products for sale 6561.32
Changes in inventories of finished goods, work-in-progress and products for sale 484.69
Cost of Goods Sold 49272.82
Employee benefits expense 4021.63
Foreign exchange loss (net) 279.76
Depreciation and amortisation expense 1766.86
Product development/Engineering expenses 899.06
Other expenses 7819.74
Amount transferred to capital and other accounts -1066.73
Total Expenses 62,993.14
Earning Before Interest and Tax(EBIT) 3,585.13
Unit of measurement : in cr.
2021-22 2020-21 2019-20
46880.97 46559.39 43485.76
382.71 472.08 442.41
47263.68 47031.47 43928.17
659.91 842.96 1,383.05
47,923.59 47,874.43 45,311.22
31693.11 30010.61 26,171.85
5030 5490.67 5,679.98
-403.87 -69.02 722.68
36319.24 35432.26 32,574.51
3601.51 4212.99 4,384.31
136.89 32.62 239
1760.57 3681.61 3,375.29
593.9 348.71 830.24
6155.52 5801.9 7,720.75
905.42 -817.53 -1,169.46
49473.05 48,692.56 47,954.64
-1,549.46 -818.13 -2,643.42
Name of Company: Tata Motors
Details of expenses ( main heads with sub-totals)
Expendire details Suitable Cost drivers
A) Construction and operating expenses
Cost of good sold:
Cost of material consumed Direct cost
purchase of stock in trade volume of sales
Increase of inventories of finished goods direct cost
TOTAL A
B) EMPLOYEE BENEFIT EXPENSE
Salaries and wages no.of employee
Contribution to providend fund and other fund no. of employee
Staff welfare expenses no. of employees
TOTAL B
C) Foreign exchange loss volume of sales
D) Depriciation and Amortisaation Expense value of asset
TOTAL D
E) Product Development no. of inspections
D) OTHER EXPENSES
Power and fuel kilo watt hours
Consumption of stores and spare parts no. of units of parts
Outward freight and handling charges no. of kilometer
Advertising/Sales promotion sales
Doubtful and bad debts sales
Warranty Expenes unit sold
Information technology services no. of inspections
Audit fees no. of appearences
TOTAL D
(Unit of Measure: in Crores )
Suggested
Classification
basded on cost
driver behavior -
Fixed/ Variable 2022-23 2021-22 2020-21 2019-20
variable 42226.81 31693.11 30010.61 26171.85
variable 6561.32 5030 5490.67 5679.98
variable 484.69 -403.87 -69.02 722.68
49272.82 36319.24 35432.26 32574.51
fixed 3364.21 2993.01 3,590.53 3,653.34
fixed 232.45 218.75 270.99 254.9
fixed 424.97 389.75 351.47 476.07
4021.63 3601.51 4212.99 4,384.31
variable 279.76 310.89 1.67 239
fixed 1766.86 1760.57 3681.61 3375.29
1766.86 1760.57 3681.61 3375.29
variable 899.06 593.9 348.71 830.24
variable 420.98 344.78 371.78 428.85
variable 424.32 406.36 417.57 461.37
variable 1142.31 1025.95 802.84 1,077.20
fixed 439.71 321.49 441.54 538.36
variable 71.55 32.7 73.37 30.91
variable 996.23 717.36 441.54 538.36
variable 770.44 705.47 728.88 764.31
variable 9.74 10.25 13.44 13.15
4275.28 3564.36 3290.96 3852.51
Income Statement - Based on Contribution Method
Particular Cost Behaviour Column1
Year 1
Sale
Variable expense
(to be filtered and brought in from earlier sheet)
Total Variable expense
Contribution
Contribution Margin Ratio
Fixed Expense
Total Fixed Expense
Net income ( to match with figures in Income statem3ent sheet)
Contribution Margin Ratio
Break even in dollar
Margin of safety
Operating leverage
Column2 Column3 Column4
Year 2 Year 3 Year 4
PROFIT & LOSS ACCOUNT OF ASIAN PAINTS
Particular Column3
2018-2019
Sale 100%
Variable expense
Total Variable expense
Contribution
Fixed Expense
Total Fixed Expense
Operating income
Contribution Margin Ratio
Break even in dollar
Margin of safety
Operating leverage
Actuals last 4 years
Total Cost Column5 Total Cost2 Column7 Total Cost3 Column9 Total Cost4
2017-2018 2016-2017 2015-2016
(CRORES) (CRORES) (CRORES) (CRORES)
16670.59 100% 14837.05 100% 14661.33 100% 12871.18
Forecast
Column11 Total Cost5
2019-2020
(CRORES)
100% 17837.53
INTERPRETATIONS ANDS ANALYSIS
LEARNING
