“A STUDY ON FINANCIAL RATIO ANALYSIS OF TATA

MOTORS”

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE (PROFESSIONAL)

Submitted by

ALTHAF E A
(CCASBCP023)

Under the supervision of

Ms. ALAGRA ANTONY

DEPARTMENT OF COMMERCE

CHRIST COLLEGE(AUTONOMOUS), IRINJALAKUDA

MARCH 2021
 CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF COMMERCE
CERTIFICATE

This is to certify that the project report entitled “A STUDY ON FINANCIAL

RATIO ANALYSIS OF TATA MOTORS” is a bonafide record of project
done by ALTHAF E A, Reg. No. CCASBCP023, under my guidance and
supervision in partial fulfillment of the requirement for the award of the degree
of BACHELOR OF COMMERCE (PROFESSIONAL) and it has not
previously formed the basis for any Degree, Diploma and Associateship or
FELLOWSHIP.

PROF. K.O.FRANCIS Ms. ALAGRA ANTONY

Co-ordinator Project Guide
 DECLARATION

I, ALTHAF E A, hereby declare that the project work entitled “A

STUDY ON FINANCIAL RATIO ANALYSIS OF TATA MOTORS” is a
record of independent and bonafide project work carried out by me under the
supervision and guidance of Ms. Alagra Antony, Assistant Professor,
Department of Commerce, Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any
Degree, Diploma, Associateship or other similar title of any other university or
institute.

Place: Irinjalakuda Althaf E A

Date: CCASBCP023
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all

people who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose
divine guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev.Dr. Jolly Andrews,

Principal-in-Charge, Christ college Irinjalakuda for providing various facilities.

I am thankful to Prof. K.O.Franscis, Co-ordinator of B.Com (Professional), for

providing proper help and encouragement in the preparation of this report.

I am thankful to Ms. Teena Thomas, Class teacher for her cordial support,
valuable information and guidance, which helped me in completing this task
through various stages.

I express my sincere gratitude to Ms Alagra Antony, Assistant Professor,

whose guidance and support throughout the training period helped me to
complete this work successfully.

I would like to express my gratitude to all the faculties of the Department for
their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my

college for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1–4

CHAPTER 2 REVIEW OF LITERATURE 5 – 18

INDUSTRY AND COMPANY

CHAPTER 3 19 – 25
PROFILE

DATA ANALYSIS AND

CHAPTER 4 26 – 37
INTERPRETATION

FINDINGS, SUGGESTIONS
CHAPTER 5 38 – 40
& CONCLUSION

BIBLIOGRAPHY

ANNEXURE
 LIST OF TABLES

TABLE
TITLE PAGE NO:
NO:

Table showing current ratio from 2015-2016 to 2019-

4.1 27
2020

Table showing Quick ratio from 2015-2020 to 2019-

4.2 28
2020

Table showing Super quick ratio from 2015-2020 to

4.3 29
2019-2020

Table showing Debt equity ratio from 2015-2016 to

4.4 30
2019-2020

Table showing proprietary ratio from 2015-2016 to

4.5 31
2019-2020

Table showing Working capital turnover ratio from

4.6 32
2015-2016 to 2019-2020

Table showing Fixed asset turnover ratio from 2015-

4.7 33
2016 to 2019-2020

Table showing Total asset turnover ratio from 2015-

4.8 34
2016 to 2019-2020

Table showing Net profit ratio from 2015-2016 to

4.9 35
2019-2020

Table showing Return on investment from 2015-2016

4.10 36
to 2019-2020

Table showing Return on share holder’s fund from

4.11 37
2015-2016 to 2019-2020
 LIST OF CHARTS

FIGURE
TITLE PAGE NO:
NO:

Figure showing current ratio from 2015-2016 to 2019-

4.1 27
2020

4.2 Figure showing quick ratio from 2015-2016 to 2019-2020 28

Figure showing super quick ratio from 2015-2016 to

4.3 29
2019-2020

Figure showing debt equity ratio from 2015-2016 to

4.4 30
2019-2020

Figure showing proprietary ratio from 2015-2016 to

4.5 31
2019-2020

Figure showing working capital turnover ratio from 2015-

4.6 32
2016 to 2019-2020

Figure showing fixed asset turnover ratio from 2015-2016

4.7 33
to 2019-2020

Figure showing total asset turnover ratio from 2015-2016

4.8 34
to 2019-2020

Figure showing net profit ratio from 2015-2016 to 2019-

4.9 35
2020

Figure showing return on investment from 2015-2016 to

4.10 36
2019-2020

Figure showing return on share holders fund from 20115-

4.11 37
2016 to 2019-2020
 CHAPTER 1
INTRODUCTION
1.1INTRODUCTION
Every business, whether large and small needs finance to carry on its
operation. Finance is the soul and blood of any business and no firm can
survive without finance. It concerns itself with the management of monetary
affairs of the firm. Finance enables the business to come into being, keeps
the business going. So the indispensability of finance cannot be questioned.
Managing of finance is an important activity which involves both short term
and long term planning. The goal of any enterprise is profit maximization. A
business will starve and die without finance. Finance is the most dominant
factor without which nothing in business activities can be carried.
Financial statement are prepared primary for decision making. They play a
major role in setting the frame work and managerial conclusion can be
drawn from this. Financial statement is the combination of the three reports
on a business. It will contain the cash flow statement, the income statement
and the balance sheet of the business. All this together produce an overall
picture of the health of the business. Financial statements are written records
that convey the financial performance of a company.
Financial performance is a subjective measure of how well a firm can use
assets from its primary mode of business and generate revenues. The term is
also used as a general measure of a firm’s overall financial health over a
given period. Financial performance analysis includes analysis and
interpretation of financial statements. It is the process of determining the
operating and financial characteristics of a firm from accounting and
financial statements. The analyst attempts to measure the firm’s liquidity,
profitability and other indicators that the business is conducted in a rational
and normal way.
Tata motors have quite the history under their belt, starting with the
company’s foundation in 1945 as a locomotive producer. Tata motor’s is just
one part of the business group Tata. The other ventures of Tata group include
Tata steel, Tata consultancy service, Tata technology, Tata tea, Titan
industries, Tata power, Taj hotels, and so on. Headquartered in Mumbai,
India, Tata motors is a multinational corporation amounting for 70%
cumulative market share in the domestic commercial vehicles segment today,
the company is the world’s second largest manufacturer of commercial
vehicles, world’s four Largest truck manufacturer and world’s second largest
bus manufacturer. It is dual-listed company, which is traded both the
Bombay stock exchange as well as the New York stock exchange. Tata got
in to the motoring business in 1954 when is starting producing heavy trucks
in a joint venture with Daimler-Benz AG. Soin1960. The first truck rolled
out of the factory’s door in Pune, India, a copy of a German Daimler truck.
1.2 STATEMENT OF THE PROBLEM
Analysis and interpretation of financial statement is a regular exercise to
review the performance of the companies. There is a need for every
organisation to evaluate their performance each year in order to make a place
in the market. Here a study about the financial performance of Tata motors.
It shows the financial performance and future prospects of the company.
1.3 SCOPE OF STUDY
The study covers the financial performance of the Tata motors. It provides
various information’s regard the functions of Tata motors. The study helps to
know the liquidity and profitability of the company and also the effective use
of assets of the company.
1.4 OBJECTIVE OF THE STUDY
1.4.1 Main objective :
• To study about the financial performance of Tata motors
1.4.2 Sub objective:
• To know the financial position of Tata motors.
• To know the liquidity and profitability of Tata motors.
• To know the financial strength and weakness of Tata motors
1.5 RESEARCH DESIGN:
1.5.1 Nature of study: This study is analytical in nature.
1.5.2 Nature of data: The study is based on secondary data. The data is
collected from the balance sheet, profit and loss account and other
documents of Tata motors.
1.5.3 Sources of data: Data’s are collected from the financial reports and
annual reports published by the company in the website.
1.5.4 Period of study: Financial statement of the past five years (2015 -2020)
is collected from the information published by the company and analyzed by
using accounting ratios.
1.6 SAMPLE DESIGN:
1.6.1 Nature of population: Automobile industry, the automotive industry
comprises a wide range of companies and organizations involved in the
design, development, and manufacturing, marketing, and selling of motor
vehicles.
1.6.2 Sample unit: Tata motors are taken for study among the leading
companies.
1.6.3 Method of sampling: Random sampling, it is a part of the sampling
technique in which each sample has an equal probability of being chosen. A
sample chosen randomly is meant to be an unbiased representation of total
population.

1.7 TOOLS FOR ANALYSIS:

The analysis and interpretation of financial statement is used to determine
the financial position and results of operation as well. Following tools are
used for analyzing the financial position of the company.
•1. Ratio analysis
1.8 LIMITATIONS OF THE STUDY
• The study done using ratio may not provide accurate values and financial
position of the company.
• The study is based on secondary data, so the information may be incorrect.
• Unavailability of documents because they are kept confidential.
1.9 CHAPTERISATION
Chapter I: Introduction
This chapter mentions introduction, statement of the problem, scope of study,
objectives, research design, sample design, method, tools and limitations of
the study.
Chapter II: Review of Literature
This chapter mentions conceptual Literature and Empirical Literature
Chapter III: Industry Profile and Company Profile
This chapter mentions Industry and Company profile of Tata motors and this
chapter gives history of the company.
Chapter IV: Data analysis and Interpretation
In this chapter evaluates the performance of the Tata motors Company. Ratio
analysis is the tool used here. The analyzed data is presented through tables
and graphs.
Chapter V: Summary of findings, Suggestions and Conclusions
The fifth chapter reveals the findings of the study to determine the financial
position of the companies. And it gives suggestion to improve the
performance.
 CHAPTER 2
REVIEW OF LITERATURE
2.1. CONCEPTUAL REVIEW:

2.1.1 Financial statement analysis: Financial statements are written records

that convey the business activities and the financial performance of a
company. Financial statements are centered on generally accepting
accounting principles. Financial statement analysis is the process of
analyzing a company’s financial statements for decision making purpose.
Financial statement analysis may be defined as the process of identifying
financial strength and weaknesses of a firm by establishing relationships
between the items in the financial statements. In short, financial statement
analysis is the process of reviewing and analyzing a company’s financial
statements to make better economic decisions to earn income in future.

2.1.2 Ratio analysis: Ratio refers to one number expressed in terms of

another number. It shows the numerical relationship between two figures.
Ratio analysis is a widely used technique of analyzing financial statements.
It is a systematic use of accounting ratios to interpret the financial statements
for studying the financial position and performance of an enterprise.

2.1.3 Types of ratios:

Liquidity ratio:
Liquidity ratios are used to measure the liquidity position or short term
financial position of a firm. These ratios are used to assess the short term
debt paying ability of a firm. These ratios are highly useful to creditors and
commercial banks that provide short term credit. Liquidity ratios are divided
into current ratio, quick ratio.
Current ratio:
It is the ratio of current assets to current liabilities. It shows the relationship
between total current assets and total current liabilities. Current ratio is also
called working capital ratio or banker’s ratio. The objective of calculating
this ratio is to measure the ability of a firm to pay off its obligations in time.
Generally 2:1 is considered as satisfactory ratio.

Quick ratio:
This shows the relationship between quick assets and current liabilities. It is
also called acid test ratio. The objective of computing this ratio is to measure
the ability of the firm to meet its short term liabilities and when due without
depending upon the sale of stock. The ideal ratio is 1:1.
Solvency ratio:
This ratio shows the relationship between total assets and total liabilities of a
business. It measures the solvency of the business. The term solvency means
the ability of a firm to pay the outside liabilities out of total assets. This is
also known as total asset to total debt ratio. The standard ratio is not fixed.

Debt equity ratio:

It is the most commonly used ratio to test the solvency of a firm. This ratio
indicates the relative proportion of debt and equity in financing the assets of
a firm. It expresses the relationship between debt and equity. This is also
known as External - internal equity ratio. The standard debt equity ratio is
1:1.

Proprietary ratio:
This ratio shows the relationship between shareholders or proprietor’s fund
and total asset. This ratio shows how much funds have been contributed by
the shareholder’s in the total assets of the firm. The ideal ratio is 0.5:1.
Fixed asset ratio:
It is an efficiency ratio that indicates how well or efficiently a business uses
fixed assets to generate sales. This ratio divides net sales by net fixed assets,
calculated over an annual period. The standard fixed asset ratio should not
exceed 1:1.

Capital gearing ratio:

Capital gearing reveals the company’s capital structure. It divides the
amount of shareholder’s equity by the fixed cost bearing fund. Common
stockholder’s equity is taken as equity less preferred stock. Fixed cost
bearing funds include long term loans, bonds, and debentures. This ratio is
important not only to the company but also to investors.

Inventory turnover ratio:

Inventory turnover ratio is a measure of liquidity of inventory. This ratio
measures how quickly inventory is sold. It shows the relationship between
costs of goods sold average inventory or stock. It is also known as
merchandise turnover ratio. It is obtained by dividing cost of goods sold by
average stock. Generally a ratio of 8 times is considered satisfactory.

Gross profit ratio:

This is the ratio of gross profit to sales expressed as a percentage. The main
objective of computing this ratio is to determine the efficiency in trading or
production activity and determining the selling price. The ideal ratio is 20%
to 25%.
Debtor’s turnover ratio:
This ratio shows the relationship between net credit sales and average
debtors including bills receivable. This ratio shows how quickly debtors are
realized or converted into cash. This ratio is also known as receivables
turnover ratio. The standard of this ratio is not fixed.

ADVANTAGES OF EFFECTIVE ANALYSIS

 Demonstrate the money related feasibility of a business adventure.
Enables you to build a model of how you may perform monetarily if
certain procedures, occasions and plans are completed.
 Allow you to manage your business right way and assume
responsibility for your income.
 Identifies potential dangers and money shortages to keep the business
out of the budgetary inconveniences.
 Allows you to quantify the genuine money related activity of the
business against the investigation monetary arrangement and make
alteration where vital.
 Provides an estimation of future money needs and whether extra
private value or getting is essential.
 Provides a standard against which to quantify future execution.

STATEMENT ANALYSIS –USERS

CREDITORS:
Anyone who has advanced assets to an association is excited about its
capability to pay back the commitment, in this manner will effort on a couple
of pay measures
MANAGEMENT:
The association controller makes an on-going examination of the
association's budgetary outcomes, particularly in association with different
operational estimations that are not seen by outside components.

REGULATORY BODIES:
If an association is transparently held, its spending rundowns are inspected
by the Securities and Exchange Commission to check whether its
declarations conform to the numerous accounting measures & the principles
of the SEC.

INVESTORS:
Both present and inevitable theorists look at spending outlines to get some
answers regarding an association's ability to keep issuing benefits, or to
make salary, or to continue creating at its past rate.

2.2. EMPIRICAL LITERATURE:

Gilman, (1925): "extent examination". Journal of cash related organizations
investigate This examination portrays the (1) extents are bond with time and
changed as time passed so can't be interpreted (2) extents are not ordinary
measure for evaluating the execution associations (3) extents adequately
impact the mind of watchers and hide the reasonable position and (4) extents
swing commonly that moreover impact the unwavering quality.
Fitzpatrick (1932): "unmistakable kind of extents examination". Journal of
the Operational Research Society.This examination depicts that thirteen
unmistakable sort of extents examination 120 failed firms .
Bliss (1923): "extents and made absolute model reliant on the extents". The
purpose behind this examination principal relationship inside the business is
shown by the extents and made complete model subject to the extents. The
reason show was not grow but instead breathed life into others to start
tackling this theory show was not grow yet rather impelled and found that
three out of thirteen extents predict the failure of firms with accurate
exactness while diverse extents also exhibited some estimate control.
Moore and Atkinson (1961): "association between capacity to pay and
money related extent" Wiley online Library, Abacus 43.3: 332-357.This
shows eventual outcomes of extent examination sway the acquiring limit of
firms. They illuminated the association between mental model and corporate
character of money related extents and find that since a long time back
settled organization keep up progressively conspicuous liquidity and
dissolvability extents.
Jagannadha Rao (1991): “financial performance of the company is the
cumulative result”. This study states that there is poor condition of financial
performance of the corporation is the cumulative result of unfavorable
factors such as continuous low capacity utilization of the units, fall in sugar
recovery in some of the units, poor operational performance, high cane price
advised by the State Government and paid up by the company, low levy
price of sugar.
Epstein and Manzon (1997): " Translating Strategy vigorously. The board
Accounting Vol". 79. This investigation estimating execution ought to
incorporate more non-monetary pointers to supplement the money related
ones, specifically as to client sentiment and execution of inside procedures
Atkinson et al. (1997): "The Impact of Budgets". S. Imprint, Management
Accounting. This examination comprehends and survey the esteem got from
providers and workers, the esteem given by the partners and the proficiency
of procedures connected in the financial element and its vital properties.
Along these lines, we can say that execution estimation assumes the job of
coordination, watching and analysis of financial element's exercises.
Kennedy and Muller (1998): "budget summaries are a push to oversee the
significance and importance of fiscal reports actualities". In this Finnish
Journal of Business Finances. This investigation depicts the the gauge might
be made of the prospects for future income, ability to pay premium and Debt
maturates (both present and long haul) and benefit and sound profit approach.
Bollen (1999): “Ratio Variables in info analysis”. This study describes the
ratios as indices of concepts; a problem can arise if it is retreated on other
indices or variables that hold a common component.
Hitchings (1999): “ratio checked is a complex and valued tool”. Journal of
the operative Research Society .In this study realized that ratio examination
is a complex and valued tool in credit assessment which is to estimate the
capability of a mortgagor to meet its debt obligations
Zopounidis (2000): “money related proportion investigations for assessing
little and medium size undertakings execution”. Diary of Banking and
Finance. This examination proposed methodological structure dependent on
budgetary proportion investigations for evaluating little and medium size
endeavors execution.
Hsieh and Wang (2001) in their investigation analyzed and concentrated on
the need of picking applicable monetary proportions for the assurance of
examination. They proposed new technique for finding helpful money
related proportion and moreover underscored that industry contrasts in item,
in size and have its very own one of a kind business rehearses and inward
and outside circumstance hence financial proportion examination ought to
accord business which suit it the most.
Kakani et al. (2001): “determinants of firm execution”. Diaries of
independent company the executives. This study analyzed the determinants
of firm execution for 566Indian firms. They apparatus ROA, ROCE, income
proportion, Sales to resource, net overall revenue, net revenue, return on Net
worth and so forth., as reliant variable and size, age, influence, working
capital proportion, business assemble association and so on., as determinants
of firm execution and found that estimate, showcase use and global
broadening had a positive connection with market valuation for firms. A
company's proprietorship creation, predominantly the dimension of value
possession by nearby money related Institutions and Dispersed open
investors, and the influence of the firm was essential variables influencing its
monetary execution.
Jonas Elmerraji (2003): “Inspect money related items quickly with
proportions". This examination characterizes the different direct speculators
would prefer to leave their choices to destiny than attempt to manage the
terrorizing of monetary proportions. Truly proportions aren't that scary, even
on the off chance that you don't have a degree in business or cash. Utilizing
proportions to settle on educated choices in regards to a speculation bodes
well, when you realize how make use them.
Krishna Prasad Upadhyay (2004): “assorted sorts of budgetary
proportions”. In this examination he utilized dissolvability proportion,
liquidity proportion, effectiveness proportion, productivity proportion and
valuation proportion. Various estimates like quantifiable profit, return on
value, return on resources, acquiring per share, profit per offer, and resource
use proportion are utilized to evaluate the benefit of the organizations. He
finished up his investigation expressing that the dissolvability position of the
two organizations isn't sound and credit creation limit is great in both the
organizations in total.
Marr (2005): “Planned Management, Leveraging and clarifying your
immaterial cost drivers”. The British Accounting Review G32; G17: This
section depicts (1) assembling a model of act for every business
independently, (2) information gathering, (3) information examination and
explanation,(4) recovery and correspondence data.
Adolphus J Toby (2007) this article tests four regression models using the
available data of Nigerian quoted small and medium sized enterprises
between 1999-2003. The results show a significantly inverse relationship
between current ratio and the gross profit margin, holding the working
capital gap constant. It is also shown that neither the total assets turnover nor
the fixed assets turnover ratios is significant in determining the gross profit
margin in Nigerian quoted SMEs. Moreover, a 1 percentage increase in the
current ratio brings about a more than proportionate decrease in debt equity
ratio.
I.M.Pandey (2007): “Managing Company’s Funds and Profits”. sixth
Edition, Pg. no 1.58, The goal of this examination money related factors
given in budget summaries seriously which will recommend the activities
which one may need to start to improve the association's monetary condition.
Kuntluru (2008) studied the impact of foreign ownership on financial
performance of pharmaceutical firms in India. The study analyzed 102
Indian pharmaceutical firms for the period 1998-2005. The researcher found
that the foreign ownership has a positive and statistically significant impact
on the financial performance of pharmaceutical companies in India.
Neumann and Roberts (2008): “financial occasions are indicated more
esteem", this investigation portrays money related measures are given
additional incentive over nonbudgetary measures and ROI is the single
execution gauge to which directors give more weightage.
Jighyasu Gaur (2010): "influence has a negative connection with capital
structure" Journal of Operational Research, 244(2), 540-554. The
investigation underpins the hypothesis that the influence of a firm negatively
affects execution. The other variable, which is working capital proportion, is
again an imperative measure since it is the liquidity by which the firm deals
with its operational viewpoint. Firms dependably endeavor to diminish the
process duration of borrowers and stock in order to pick up however much as
could reasonably be expected.
Amalendu Bhunia et.al (2011) The study aims to identify the financial
strength and weakness of the Indian public sector pharmaceutical enterprises
by properly establishing relationships between the items of the balancesheet
and profit and loss account. From the study of the financial performance of
the select pharmaceutical it can be concluded that the liquidity position was
strong in case of KAPL and it was so poor in case of RDPL thereby
reflecting the ability of the companies to pay short-term obligations on due
dates. The Indian pharmaceutical industry will witness an increase in the
market share.
Pratheepkanth (2011): "impact among capital structure and organization's
execution or position". Worldwide Journal of Financial Studies 6.1: 13.The
examination dependent on optional information was found from the budget
report printed by business. He utilized different factual instruments like
proportion, connection, relapse examination ANOVA. He decided his
examination that the business organizations for the most part rely upon the
obligation capital. In this way, they need to pay more intrigue costs.
Maryam Mohammadi & Afagh Malek (2012) In this study, the
performance of a manufacturing company was measured over the three year
period from 2009 to 2011. According to resultant assessments, it can be
interpreted that during year 2011, company did not operate well, and overall
firm’s performance in terms of profitability, liquidity and credit quality
declined due to deterioration in the company’s operating environment.
Revenue and net profit for the year 2011 reduced remarkably, mostly
because of decrease in sales and order intakes. It induced financial market
participants to be extremely risk averse, and creditors may be worried about
their loans that group may not be able to pay its debts duly.
Rachchh Minaxi (2012): "Execution he has pointed and guided that the
fiscal report examination incorporates breaking down the budget summaries
to remove information that can help basic leadership". Pg. no.3-88.This
investigation depicts the way toward assessing the connection between area
parts of the budget reports to get a comprehension of an element's position
and execution.
Ashraf & Rasool (2013) The study is about determinants of leverages of
Automobile sector firms listed in Karachi Stock Exchange during the year
2005- 2010. The study applied ordinary Least Square Methods and analyzed
the data by STATA 11 software on the panel data. The study concluded that
firms in automobile sector of Pakistan use packing order theory for their long
term financing decision. Only three variables size, tangibility and growth
were significant and other variables profitability, tax, risk and NDTS were
insignificant for determining the leverage decisions in the firm.
Dharmaraj (2014) studied the compound Annual Growth rate of selected
financial variables in Indian Automobile Industry during the period of 1998-
2012. The result showed that compound Annual Growth rate of sales in
companies namely Ashok Leyland Ltd, Hero Motocorp Ltd, Hyundai Motors
Ltd, Maharashtra Scooters Ltd, Maruti Suzuki Ltd and Tata Motors Ltd were
highly increased during the study period.
Shrabanti pal (2015) The main aim of the study is to identify the individual
ratios which are affecting the profitability of the industry. Another objective
of the study is to identify and categorized the financial ratios into a small
number of latent variable to represent a compact view of financial
performance for a specified time period. Initially the study was started with
36 ratios of 9 Indian automobile companies for a period of 15 years
classified in 7 traditional categories. Statistical techniques like factor
analysis, regression analysis are applied to the data set to facilitate the
objectives of the study. The regression analysis shows that three individual
variables WCTA, ITR and DPRCP have significant effect on the profitability
of the industry.
Harshadeep Chilukuri (2016) “Financial Statement Analysis of Ashok
Leyland Limited, India”. The study analyzed the profitability, solvency,
efficiency and cash position of the company for the period 2011-12 to 2015-
16 based on secondary data using Ratio Analysis and DuPont analysis as the
tools. The study suggested the company to reduce inventory, ensure prompt
collection from customers, and increase its sales and to improve the liquidity
position.
Sheela Christina (2017) This study is about financial performance of
wheels India limited Chennai. The study deals with analytical type of
research design with the help of secondary data collection method. For this
purpose the researcher took past five year’s data and also checked out for the
validity and reliability before conducting the study. The researcher used the
following financial tool namely ratio analysis, comparative balance sheet and
DuPont analysis and also statistical tools such as trend analysis and
correlation. Profitability ratios indicate there is a decrease in the profit level,
utilization of fixed assets and working capital in the last financial year.
Neha Mittal (2018) The aim of this study is determination of capital
structure choice of the selected Indian Industries. The main objective is to
investigate whether and to what extent the main structure theories can
explain the capital structure choice of Indian firms. It has applied multiple
regression models on the selected industries by taking data for the period
2009-2017. It examines the relevance of capital structure in selected Indian
industries based on a regression analysis and data study. It concludes that the
main variables determining capital structure of industries in India are agency
cost, assets structure, non-debt tax shield and size. The coefficients of these
variables are significant at one per cent and five per cent levels.
Dr.G.Kanagavalli & R.Saroja Devi (2018) This study is about financial
performance of selected automobiles companies. The study found that there
is the positive strong relationship of liquidity ratio. It evolves the effective
inventory management and conversion period leads to higher liquidity power
to the companies. Therefore, the study proves that there are some significant
changes to meet their liabilities. The solvency ratio of selected automobile
companies has some fluctuation. The efficiency or turnover ratios of Hero
Motocorp are higher than other automobile companies. After analyzing all
the aspects, concern with this research, we can say that Bajaj Auto and TVS
Motors are satisfactory but Hero Motocorp sustains a good position in the
market.
 CHAPTER 3
INDUSTRY PROFILE & COMPANY PROFILE
3.1 INDUSTRY PROFILE:
Automotive industry, all those companies and activities involved in the
manufacture of motor vehicles, including most components, such as engines
and bodies, but excluding tires, batteries, and fuel. The industry’s principal
products are passenger automobiles and light trucks, including pickups, vans,
and sport utility vehicles. Commercial vehicles (i.e., delivery trucks and
large transport trucks, often called semis), though important to the industry,
are secondary.
The automobile industry is one of the most important drivers of economic
growth of India and one with high participation in global value chains. The
growth of this sector has been on the back of strong government support
which has helped it carve a unique path among the manufacturing sectors
of India. The automobiles produced in the country uniquely cater to the
demands of low- and middle-income groups of population which makes
this sector stand out among the other automobile-producing countries. This
chapter analyzes the roles of government policy, infrastructure, and other
enabling factors in the expansion of the automobile and automotive
component sectors of India. In 2017, India became the world’s fourth
largest automobile market, and the demand for Indian vehicles continues to
grow in the domestic and international markets. To meet the future needs of
customers (including the electrical vehicles) and stay ahead of competition,
manufacturers are now catching up on up gradation, digitization, and
automation. The chapter also analyzes India’s national policy in light of
these developments.
The automobile sector today is one of the key sectors of the country
contributing majorly to the economy of India. The automotive industry
comprises a wide range of companies and organizations involved in the
design, development, manufacturing, marketing, and selling of motor
vehicles. It is one of the world's largest industries by revenue. It directly and
indirectly provides employment to over 1.5 million people in the country. A
stable government framework, increased purchasing power, large domestic
market, and an ever increasing development in infrastructure have made
India a favorable destination for investment. It is one of the largest sectors in
the world, both in terms of sales volume and production. The Indian
automobile industry has a well established name globally being the second
largest two wheeler market in the world, fourth largest commercial vehicle
market in the world, and eleventh largest passenger car market in the world
and expected to become the third largest automobile market in the world
only behind USA and China.
The automobile sector facilitates the improvement in various infrastructures
like power, rail and road transport. Due to its deep forward and backward
linkages with several key segments of the economy, the automobile industry
is having a strong multiplier effect on the growth of a country and hence is
capable of being the driver of economic growth. It plays a major catalytic
role in developing transport sector in one hand and help industrial sector on
the other to grow faster and thereby generate a significant employment
opportunities. In India, automobile is one of the largest industries showing
impressive growth over the years and has been significantly making
increasing contribution to overall industrial development in the country. The
norms for foreign investment and import of technology have also been
liberalized over the years for manufacture of vehicles. At present, 100%
foreign direct investment is permissible under the automatic route in this
sector, including passenger car segment.
The automotive industry is a major industrial and economic force worldwide.
It makes 60 million cars and trucks a year, and they are responsible for
almost half the world's consumption of oil. The industry employs 4 million
people directly, and many more indirectly. Despite the fact that many large
companies have problems with overcapacity and low profitability, the
automotive industry remains very strong influence and the importance
industry also provides well- paying jobs with good benefits, has heavy
linkages with supplier industries
The Indian automobile industry proved to be in good shape in the last year
even after the economic downturn. This was majorly due to the fact of
renewed interest shown by global automobile players like Nissan Motors
which consider India to be a potential market. The industry accounts for 7.1
per cent of the country's Gross Domestic Product. The Two Wheelers
segment with 80 per cent market share is the leader of the Indian Automobile
market owing to a growing middle class and a young population. Moreover,
the growing interest of the companies in exploring the rural markets further
aided the growth of the sector. The history of the automobile industry,
though brief compared with that of many other industries, has exceptional
interest because of its effects on history from the 20th century. Although the
automobile originated in Europe in the late 19th century, the United States
completely dominated the world industry for the first half of the 20th century
through the invention of mass production techniques.

3.2 COMPANY PROFILE:

TATA MOTORS

Tata Motors Limited is India’s largest automobile company, with revenues

of Rs.24, 000 crores (US$ 5.5 billion) in 2005-06. It is the leader in
commercial vehicles in each segment, and the second largest in the
passenger vehicles market with winning products in the compact, midsize
car and utility vehicle segments. The company is the world’s fifth largest
medium and heavy commercial vehicle manufacturer, and the world’s
second largest medium and heavy bus manufacturer.
A leader in the Indian commercial vehicle market, Tata Motors also ranks
amongst India’s top passenger vehicle manufacturers, with over 9 million
vehicles plying on Indian roads. The company has played an instrumental
role in transforming the country into a destination for world-class automotive
manufacturing and continues to work towards building the nation. Tata
Motors has always been at forefront of innovating technologies and
providing products and experiences catering to the discerning needs of our
customers across both passenger and commercial vehicles business. With its
corporate brand identity - Connecting Aspirations, Tata Motors continues to
create segment-defining products that will fire up the imagination of
customers - generation after generation; reiterating the company’s promise
of offering better journeys.
With some of the worlds’ most iconic brands, including Jaguar Land Rover
in the UK, Tata Daewoo in South Korea, and a network of 76 subsidiaries
globally, the company has consolidated its position as the Tata Motors
Group. In India, Tata Motors’ presence cuts across the length and breadth of
the country with a manufacturing base spread across its biggest industrial
hubs; Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar
Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad
(Karnataka).
Recognized for its world-class quality, originality, engineering and design
excellence, the company is on the path of shaping the future of mobility in
India. With a strong team of 4,500 engineers, scientists and technicians at the
company’s Engineering Research Centre, Tata Motors’ R&D centres span
multiple geographies, including Pune (India), UK and South Korea. For the
rapidly changing automotive environment, Tata Motors launched its sub-
brand – TAMO. TAMO acts as an incubating center of innovation towards
new technologies, business models and partnerships in order to define future
mobility solutions. It operates as an agile, ring-fenced vertical, in the first
step on a low volume, low investment model to provide fast tracked proves
of technologies and concepts. TAMO will transform the experience of
interfacing and interacting with customers and the wider community. It will
provide a digital ecosystem, which will be leveraged by Tata Motors to
support the mainstream business in the future.
The company’s 22,000 employees are guided by the vision to be “best in the
manner in which we operate, best in the products we deliver, and best in our
value system and ethics.”
Established in 1945, Tata Motors’ presence indeed cuts across the length and
breadth of India. Over 3.5 million Tata vehicles ply on Indian roads, since
the first rolled out in 1954.
The company’s manufacturing base is spread across Jamshedpur, Pune and
Lucknow, supported by a nation-wide dealership, sales, services and spare
parts network comprising about 1,200 touch points.
The company also has a strong auto finance operation, Tata Motor Finance,
for supporting customers to purchase Tata Motors vehicles. Tata Motors, the
first company from India’s engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international
automobile company. In 2004, it acquired the Daewoo Commercial Vehicles
Company, Korea’s second largest truck maker. The rechristened Tata
Daewoo Commercial Vehicles Company has already begun to launch new
products. In 2005,Tata Motors acquired a 21% stake in Hispano Carrocera, a
reputed Spanish bus and coach manufacturer, with an option to acquire the
remaining stake as well. Hispano’s presence is being expanded in other
markets. In 2006, it has formed a joint venture with the Brazil-based
Marcopolo, a global leader in body-building for buses and coaches, to
manufacture and assemble fully-built buses and coaches.
Tata Motors’ is also expanding its international footprint, established
through exports since 1961. The company’s commercial and passenger
vehicles are already being marketed in several countries in Europe, Africa,
the Middle East,Australia, South East Asia and South Asia. It has assembly
operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and
Senegal.
The foundation of the company’s growth over the last 50 years is a deep
understanding of economic stimuli and customer needs, and the ability to
translate them into customer-desired offerings through leading edge R&D.
With 1,400 engineers and scientists, the company’s Engineering Research
Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres in Pune, Jamshedpur,
Lucknow, in India, and in South Korea, Spain, and the UK. It was Tata
Motors, which developed the first indigenously developed Light Commercial
Vehicle, India’s first Sports Utility Vehicle and, in 1998, the Tata Indica,
India’s first fully indigenous passenger car. Within two years of launch, Tata
Indica became India’s largest selling car in its segment.
The pace of new product development has quickened. In 2005, Tata Motors
created a new segment by launching the Tata Ace, India’s first indigenously
developed mini-truck. The years to come will see the introduction of several
other innovative vehicles, all rooted in emerging customer needs. Besides
product development, R&D is also focusing on environment-friendly
technologies in emissions and alternative fuels.
Through its subsidiaries, the company is engaged in engineering and
automotive solutions, construction equipment manufacturing, automotive
vehicle components manufacturing and supply chain activities, machine
tools and factory automation solutions, high-precision tooling and plastic and
electronic components for automotive and computer applications, and
automotive retailing and service operations.
True to the tradition of the Tata Group, Tata Motors is committed in letter
and spirit to Corporate Social Responsibility. It is a signatory to the United
Nations Global Compact, and is engaged in community and social initiatives
on labour and environment standards in compliance with the principles of
the Global Compact. In accordance with this, it plays an active role in
community development, serving rural communities adjacent to its
manufacturing locations.
Sustainability and the spirit of ‘giving back to society’ serves as the guiding
philosophy at Tata Motors; along with good corporate citizenship, which is
strongly embedded in the company’s DNA. Through the Affirmative Action
Programme, it has touched the lives of more than 5 lakh people in FY 16-
17.With the foundation of its rich heritage, Tata Motors today is etching a
refulgent future.
 CHAPTER 4
DATA ANALYSIS & INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
Data analysis simply means analyzing the entire data collected for the study.
Data collected for the study is financial data. So, analysis is also called
financial analysis. Financial analysis refers to simplification of the financial
data in the financial statements. It is the process of analyzing the information
contained in the financial statement to judge the profitability and financial
soundness of the company.
Financial analysis includes both analysis and interpretation. The term
interpretation literally means to explain the meaning of. In the context of
financial analysis interpretation means explaining the meaning and of the
data. In this study uses ratio analysis for the purpose of financial data
analysis. Ratio analysis is an important technique of analysis of financial
statement. It is the most widely used technique of financial analysis. Ratio
analysis was perhaps the first financial tool developed to analyze and
interpret the financial data analysis. Ratio analysis shows the numerical
relationship between two figures.
Tata motors private limited had been selected for the study. Secondary data
is gathered from the website of Tata motors company. Required data had
been compiled from the annual report of the company from last 5 years from
2015-16 to 2019-20. Simple random sampling had been used for selecting
the sample.
In this present study analysis had been done using ratio analysis. Liquidity
ratio, solvency ratio, profitability ratio had been examined for the study.
Liquidity ratio includes current ratio, quick ratio and super quick ratio.
Solvency ratio includes debt equity ratio, proprietary ratio and leverage ratio.
Activity ratio includes working capital turnover ratio, fixed asset turnover
ratio, total asset turnover ratio. Profitability ratio includes net profit ratio,
return on investment and return on shareholders’ fund.
Table 4.1 showing current ratio from 2015-2020
Current ratio=current asset/current liability

Year Current Asset Current Liability Ratio

2015-2016 11861.69 18701.74 0.63
2016-2017 12757.07 21538.35 0.59
2017-2018 14971.66 24218.95 0.61
2018-2019 13229.30 22940.81 0.57
2019-2020 13568.76 25810.82 0.52
[Source: compiled from annual report]
Generally current ratio of 2:1 is considered as standard. From table 4.1 it is
clear that the company is fails to attain the standard ratio. Current ratio from
2015-16 to 2019-20 is fluctuating year by year.

Figure 4.1 showing current ratio from 2015-2020

0.
7

0.
6

0.
5

0.
4

0.
3

0.
2 2015- 2016- 2017- 2018- 2019-
2016 2017 2018 2019 2020
[Source: Compiled from annual report]
Table 4.2 showing quick ratio from 2015-2020
Quick ratio = quick asset/current liability
Quick asset = current asset-inventory
Year Quick asset Current liability Ratio
2015-2016 51558.08 18701.74 2.75
2016-2017 7204.06 21538.35 0.33
2017-2018 9301.53 24218.95 0.38
2018-2019 8567.3 22940.81 0.37
2019-2020 9736.84 25810.82 0.37
[Source: Compiled from annual report]
Generally Quick ratio of 1:1 is considered as satisfactory. From the table 4.2
it is clear that quick ratio is only grater the 1 in the financial year 2015-2016
during the following year it is less than 1 which means financial position of
the company is unsound. So company needs to increase the liquid asset to
attain standard ratio.
Figure 4.2 showing quick ratio from 2015-2016

2.
5

1.
5

0.
5
2015- 2016- 2017- 2018- 2019-
2016 2017 2018 2019 2020
[Source: Compiled from annual report]
Table 4.3 showing super quick ratio from 2014-2019
Super quick ratio = absolute liquid asset/current liability
Super quick asset = cash + short term investment
Year Super quick asset Current liability Ratio
2015-2016 2534.26 18701.74 0.13:1
2016-2017 2764.03 21538.35 0.12:1
2017-2018 3298.2 24218.95 0.13:1
2018-2019 2739.79 22940.81 0.11:1
2019-2020 4417.5 25810.82 0.17:1
[Source: Compiled from annual report]]
Generally super quick ratio of 0.5:1 is considered as ideal. From table 4.3 it
is clear that company is not met the ideal ratio in any of the years from 2015-
16 to 2019-20. The ratio shows fluctuating trend. Company does not keep
much of super quick asset to pay off its super quick liabilities.
Figure 4.3 showing super quick ratio from 2015-2020

0.1
8
0.1
6
0.1
4
0.1
2
0.1
0.0
8
0.0
6
2015- 2016- 2017- 2018- 2019-
2016 2017 2018 2019 2020
[Source: Compiled from annual report]
Table 4.4 showing debt equity ratio from 2015-2020
Debt equity ratio = Total debt/equity
Year Debt Equity Ratio
2015-2016 14712.15 23262.11 0.63:1
2016-2017 16177.32 21162.61 0.76:1
2017-2018 14822.37 20170.98 0.73:1
2018-2019 15806.30 22162.52 0.71:1
2019-2020 18391.40 18387.65 1.00:1
[Source: Compiled from annual report]
Debt equity ratio indicates the relative proportion of debt and equity in
financing the assets of a firm. Generally, debt equity ratio of 1:1 is
considered as standard. From the table 4.4 it is clear that the company had
not reached the standard ratio from the year 2015-2016 to 2018-2019 and in
2019-2020 it has reached the standard. It shows that the company tends to
use more of borrowed fund than the owner’s fund. The ratio shows
fluctuating trend.
Figure 4.4 showing debt equity ratio from 2015-2020

1.
2

0.
8

0.
6

0.
4 2015- 2016- 2017- 2018- 2019-
[Source: Compiled from annual report]
Table 4.5 showing proprietary ratio from 2015-2020
Proprietary ratio=shareholders fund/total asset
Year Share holders Total asset Ratio
fund
2015-2016 23262.11 56676.00 0.41:1
2016-2017 21162.61 58878.28 0.35:1
2017-2018 20170.98 59121.30 0.34:1
2018-2019 22162.52 60909.63 0.36:1
2019-2020 18387.65 62589.87 0.29:1
[Source: Compiled from annual report]
Proprietary ratio shows how much funds been contributed by the
shareholder’s in the total assets of the firm. Generally proprietary ratio of
0.5:1 or above [or 50% or more] considered as ideal .Table 4.5 shows that
the company’s proprietary ratio is less than the standard. This means high
risk to the creditors of the company. Proprietary ratio from 2015-2016 to
2019-2020 is decreasing year by year.
Figure 4.5 showing proprietary ratio from 2015-2020

0.4
5
0.4
0.3
5
0.3
0.2
5
0.2
0.1
5
2015- 2016- 2017- 2018- 2019-

[Source: Compiled from annual report]

Table 4.6 showing working capital turnover
Working capital turnover ratio = net sales/working capital
Working capital = current asset-current liability
Year Net sales Working capital Ratio
2015-2016 42845.47 -6840.05 -6.26
2016-2017 44363.60 -8781.28 -5.05
2017-2018 58831.41 -9247.29 -6.3
2018-2019 68764.88 -9711.51 -7.08
2019-2020 43485.76 -12242.06 -3.5
[Source: Compiled from annual report]
Generally, a working capital turnover ratio is 7 or 8 times is considered as
ideal. From table 4.7 it is clear that working capital turnover ratio shows a
negative sign. Which means it shows negative figures in each year. It
indicates under trading and working capital is not utilized in generating sales.
Figure 4.6 showing working capital turnover ratio from 2015-2020

0
2015- 2016- 2017- 2018- 2019-
-1 2016 2017 2018 2019 2020

-2

-3

-4

-5

-6

-7

-8
[Source: Compiled from annual report]
Table 4.7 showing fixed asset turnover ratio
Fixed asset turnover ratio = net sales/fixed asset
Year Net sale Fixed asset Ratio
2015-2016 42845.47 26762.34 1.60
2016-2017 44363.60 28043.92 1.58
2017-2018 58831.41 26800.35 2.19
2018-2019 68764.88 28573.42 2.40
2019-2020 43485.76 29702.78 1.46
[Source: compiled from annual report]
Fixed asset turnover ratio shows the relationship between fixed assets and
net sales. A higher ratio indicates better utilization of fixed assets. Generally
fixed asset turnover ratio of 4 times is considered as satisfactory. Table 4.8
shows that the fixed asset turnover ratio is below the standard. A low fixed
asset turnover ratio generally indicates that a firm does not use its asset
effectively or its full potential to generate revenue.
Figure 4.7 showing fixed asset turnover ratio from 2015-2020

[Source: Compiled from annual report]

Table 4.8 showing total asset turnover ratio
Total asset turnover ratio= net sales/total asset
Year Net sale Total asset Ratio
2015-2016 42845.47 56676.00 0.75
2016-2017 44363.60 58878.28 0.75
2017-2018 58831.41 59212.30 0.99
2018-2019 68764.88 60909.63 1.12
2019-2020 43485.76 62589.87 0.69
[Source: compiled from annual report]
The total asset turnover ratio compares the sales of a company to its asset
base. Generally, total asset turnover ratio of 2.5 or more is considered as
ideal. From the table 4.9 it is clear that total asset turnover ratio is below the
standard. It shows that the company is not efficiently using its assets to
generate sale.
Figure 4.8 showing total asset turnover ratio

1.
2

0.
8

0.
6

0.
4

0.
2015- 2016- 2017- 2018- 2019-
2016 2017 2018 2019 2020
[Source: Compiled from annual report]
Table 4.9 showing net profit ratio from 2015-2020
Year Net profit Net sale Ratio
2015-2016 -62.30 42845.47 -0.14
2016-2017 -2479.99 44363.60 -5.5
2017-2018 -1034.85 58831.41 -1.75
2018-2019 -2020.60 68764.88 -2.93
2019-2020 -7289.63 43485.76 -16.7
[Source: Compiled from annual report]

Net profit ratio is the ratio of net profit earned by a business and its net sales.
Generally Ideal form of net profit ratio is 10%. From table 4.12 shows that
the company is fail to attain the standard ratio. Which means the company is
under pricing. Also shows lower profitability and lower return to the
shareholders of the company.net profit ratio from 2015-16 to 2019-2020 is
fluctuating year by year.

Figure 4.9 showing net profit ratio from 2015-2020

0
2015- 2016- 2017- 2018- 2019-
2016 2017 2018 2019 2020
-
5

-
10

-
15

-
20
[Source: Compiled from annual report]
Table 4.10 showing return on investment ratio from 2015-2020
Return on investment=profit before interest and tax/capital employed*100
Capital employed = fixed asset + current asset – current liability

Year Profit before tax Capital Ratio

employed
2015-2016 394.43 19922.29 1.97

2016-2017 -1470.75 19262.64 -7.6

2017-2018 206.57 17553.06 1.17

2018-2019 1840.91 18861.91 9.7

2019-2020 -4026.47 17460.72 -23.06

[Source: Compiled from annual report]

Generally, return on investment of 15% is considered as standard. From table

4.8 the company’s return on investment is below the standard and it goes
negative in the second and last year. This shows that the company experiences a
loss in the value of their investment during the period of time. The company’s
return on investment shows a fluctuating trend.
Figure 4.10 showing return on investment from 2015-2020

15

10

0
2015- 2016- 2017- 2018- 2019-
-5

-10

-15

-20

-
[Source: Compiled from annual report]
Table 4.11 showing return on shareholder’s fund from 2015-2020

Return on shareholder’s fund=net profit after interest and tax/shareholders

fund*100

Year Net profit after Share holders Ratio

tax fund
2015-2016 -62.30 23262.11 -0.26
2016-2017 -2479.99 21162.61 -11.7
2017-2018 -1034.85 20170.98 -5.14
2018-2019 2020.60 22162.52 9.11
2019-2020 -7289.63 18387.65 -39.64
[Source: compiled from annual report]

Generally ideal from of return on share holder’s fund is 15%. From table 4.11 it is
clear that company’s return on share holder’s fund is less than the standard and it
goes to negative except the year 2018-2019. It shows that the company’s share
holders are losing, rather than gaining value. This is usually a very bad sign for
investors and managers trying to avoid a negative return as aggressively as
possible.
Figure 4.11 showing return on shareholders fund from 2015-2020

[Source: Compiled from annual report]

 CHAPTER 5
FINDINGS, SUGGESTIONS & CONCLUSIONS
5.1 FINDINGS:
1. The current ratio of the company isn’t satisfactory, because that
doesn’t attain the ideal ratio. It indicates that the liquidity position of
the firm is not good and the firm shall not be able to pay its current
liabilities in time without facing difficulties.
2. Quick ratio is above the standard in the year 2015-2016. And in the
following year it is less than the standard. It means the company’s
ability to cover short term debt is getting worse.
3. The company had not reached the standard Debt equity ratio ratio
from the year 2015-2016 to 2018-2019 and in 2019-2020 it has
reached the standard. It shows that the company tends to use more of
borrowed fund than the owner’s fund. The ratio shows fluctuating
trend.
4. Proprietary ratio is below the standard and it is decreasing year by
year. It shows that the company is making use of too much debt or
trade payable rather than equity.
5. Working capital turnover ratio shows that the company has not
sufficient short term funds for fulfilling the sales done for that period.
This cause a shortage of funds and can cause a business to run out of
money
6. Fixed asset turnover ratio is below the standard. . A low fixed asset
turnover ratio generally indicate that a firm does not use its asset
effectively or its full potential to generate revenue
7. Total asset turnover ratio is below the standard. It shows that the
company is not efficiently using its assets to generate sale.
8. Net profit ratio is below the standard and it also goes negative. It
means that the revenue made by the business from selling product or
services is not enough to cover the cost of making or selling those
product or service.
 9. Company’s return on investment is below the standard and it goes
negative in the second and last year. This shows that the company
experiences a loss in the value of their investment during the period of
time. The company’s return on investment shows a fluctuating trend.
10.Company’s return on share holder’s fund is less than the standard and
it goes to negative except the year 2018-2019. It shows that the
company’s share holders are losing, rather than gaining value. This is
usually a very bad sign for investors and managers trying to avoid a
negative return as aggressively as possible.

5.1SUGGESTIONS:
1. The company needs to work on its working capital by maintaining
sufficient current assets and decreasing current liabilities.
2. By taking adequate measures to increase the sale, the company can
increase its profit.
3. The company should maintain a good debt equity ratio. The current
debt equity ratio of the company is ideal. So that the company should
continue with the debt equity ratio.
4. The company’s profit is diminishing therefore they can take
immediate actions for improving profitability.
5. Fluctuations in the ratio may be because there are some kinds of
management problems or under utilization of products. The top
authorities should take necessary steps to improve the management
and production.
6. It is advisable to take more efforts to increase the overall efficiency of
the business.
5.4 CONCLUSIONS:
The study was conducted with the main objective of analyzing the financial
performance of TATA MOTORS. The study is to analyze the financial
performance of the company in terms of solvency, liquidity and profitability.
The study is carried out with the help of published annual report of the
company during 2015 to 2020. The study highlights that the financial
performance of TATA MOTORS Private limited is not satisfactory. The
profitability of the company is not wealthy, it was found to be in a gradual
decreasing manner regarding the net sales and the net profits of the company
since 2015 onwards, which can be modified by implementing proper
financial management concept. Thus it can be concluded that inner strength
of the company is remarkable. Company can further improve its profitability
through optimum capital gearing and reduction in administration and
financial expenses.
BIBLIOGRAPHY
BIBLIOGRAPHY

WEBSITES
 www.google.com
 www.moneycontrol.com
 www.wikipedia.com
 www.tatamotors.com

BOOKS
 Management accounting
 Financial management “SP JAIN AND NARANG”
 Accounting for management “A Vinod-2013”
ANNEXURE
 Corporate Overview Statutory Reports Financial Statements

(Standalone)

BALANCE SHEET
AS AT MARCH 31, 2016
(R in crores)

As at As at
Note Page
March 31, 2016 March 31, 2015
I. EQUITY AND LIABILITIES
1. SHAREHOLDERS’ FUNDS
(a) Share capital 2 F-15 679.18 643.78
(b) Reserves and surplus 3 F-17 21,688.90 14,218.81
22,368.08 14,862.59
2. NON-CURRENT LIABILITIES
(a) Long-term borrowings 4 F-18 10,687.94 12,318.96
(b) Other long-term liabilities 7 F-20 210.12 286.80
(c) Long-term provisions 9 F-21 1,409.05 2,104.19
12,307.11 14,709.95
3. CURRENT LIABILITIES
(a) Short-term borrowings 5 F-18 3,351.74 7,762.01
(b) Trade payables 11 F-21 8,916.60 8,852.65
[includes dues of micro and small enterprises R127.39 crores
(March 31, 2015 : R139.28 crores)]
(c) Other current liabilities 8 F-20 4,267.23 3,142.88
(d) Short-term provisions 10 F-21 1,215.49 613.09
17,751.06 20,370.63
TOTAL 52,426.25 49,943.17
II. ASSETS
1. NON-CURRENT ASSETS
(a) Fixed assets
(i) Tangible assets 12 F-22 12,252.78 12,260.50
(ii) Intangible assets 13 F-22 3,511.19 3,522.73
(iii) Capital work-in-progress 1,469.71 1,349.95
(iv) Intangible assets under development 5,011.18 4,690.84
22,244.86 21,824.02
(b) Non-current investments 14 F-23 16,975.46 16,966.95
(c) Long-term loans and advances 16 F-26 2,363.22 2,403.56
(d) Other non-current assets 18 F-27 136.80 175.67
41,720.34 41,370.20
2. CURRENT ASSETS
(a) Current investments 15 F-25 1,736.00 20.22
(b) Inventories 20 F-28 4,902.20 4,802.08
(c) Trade receivables 21 F-28 1,568.46 1,114.48
(d) Cash and bank balances 22 F-28 452.08 944.75
(e) Short-term loans and advances 17 F-26 1,794.32 1,574.41
(f ) Other current assets 19 F-27 252.85 117.03
10,705.91 8,572.97
TOTAL 52,426.25 49,943.17
III. NOTES FORMING PART OF FINANCIAL STATEMENTS

In terms of our report attached For and on behalf of the Board

For DELOITTE HASKINS & SELLS LLP CYRUS P MISTRY [DIN: 00010178] N N WADIA [DIN: 00015731] GUENTER BUTSCHEK [DIN: 07427375]
Chartered Accountants Chairman CEO & Managing Director
R A MASHELKAR [DIN: 00074119]
R PISHARODY [DIN: 01875848]
S BHARGAVA [DIN: 00035672] Executive Director
B P SHROFF S B BORWANKAR [DIN: 01793948]
N MUNJEE [DIN: 00010180] Executive Director
Partner
V K JAIRATH [DIN: 00391684] C RAMAKRISHNAN
Group Chief Financial Officer
R SPETH [DIN: 03318908]
Directors H K SETHNA [FCS: 3507]
Company Secretary
Mumbai, May 30, 2016
Mumbai, May 30, 2016

F-8 71st Annual Report 2015-16

 Independent Auditors’ Report Balance Sheet Statement of Profit and Loss Cash Flow Statement Notes to Accounts
(F-8) (F-9)

STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED MARCH 31, 2016

(R in crores)

Note Page 2015-2016 2014-2015

I. REVENUE FROM OPERATIONS 23 (1) F-29 46,646.67 39,531.23

Less: Excise duty (4,276.85) (3,229.60)
42,369.82 36,301.63
II. OTHER INCOME 23 (2) F-29 2,132.92 1,881.41
III. TOTAL REVENUE (I + II) 44,502.74 38,183.04
IV. EXPENSES:
(a) Cost of materials consumed 39 F-41 24,313.08 22,155.23
(b) Purchase of products for sale 35 F-39 5,259.27 5,765.24
(c) Changes in inventories of finished goods, work-in-progress,
and products for sale 22.94 (878.82)
(d) Employee cost / benefits expense 24 F-30 3,026.75 3,091.46
(e) Finance cost 25 F-30 1,481.11 1,611.68
(f ) Depreciation and amortisation expense F-22 2,453.75 2,603.22
(g) Product development expense / Engineering expenses 424.61 437.47
(h) Other expenses 26 F-30 8,041.81 8,087.28
(i) Expenditure transferred to capital and other accounts (1,034.18) (1,118.75)
TOTAL EXPENSES 43,989.14 41,754.01
V. PROFIT / (LOSS) BEFORE EXCEPTIONAL ITEMS, EXTRAORDINARY ITEMS AND TAX
(III - IV) 513.60 (3,570.97)
VI. EXCEPTIONAL ITEMS
(a) Exchange loss (net) including on revaluation of foreign currency borrowings,
deposits and loans 91.37 320.50
(b) Provision for investment and costs associated with closure of operations of a
subsidiary 97.86 -
(c) Employee separation cost 10.04 83.25
(d) Impairment of capitalised fixed assets 163.94 -
363.21 403.75
VII. PROFIT / (LOSS) BEFORE EXTRAORDINARY ITEMS AND TAX (V - VI) 150.39 (3,974.72)
VIII. Extraordinary items - -
IX. PROFIT / (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS (VII - VIII) 150.39 (3,974.72)
X. Tax expense / (credit) (net) 6 (b) F-19 (83.84) 764.23
XI. PROFIT / (LOSS) AFTER TAX FOR THE YEAR FROM CONTINUING OPERATIONS (IX - X) 234.23 (4,738.95)
XII. EARNINGS PER SHARE 27 F-31
A. Ordinary shares (Face value of R 2 each)
a. Basic R 0.68 (14.57)
b. Diluted R 0.68 (14.57)
B. ‘A’ Ordinary shares (Face value of R 2 each)
a. Basic R 0.78 (14.57)
b. Diluted R 0.78 (14.57)
XIII. NOTES FORMING PART OF FINANCIAL STATEMENTS

In terms of our report attached For and on behalf of the Board

For DELOITTE HASKINS & SELLS LLP CYRUS P MISTRY [DIN: 00010178] N N WADIA [DIN: 00015731] GUENTER BUTSCHEK [DIN: 07427375]
Chartered Accountants Chairman CEO & Managing Director
R A MASHELKAR [DIN: 00074119]
R PISHARODY [DIN: 01875848]
S BHARGAVA [DIN: 00035672] Executive Director
B P SHROFF S B BORWANKAR [DIN: 01793948]
N MUNJEE [DIN: 00010180] Executive Director
Partner
V K JAIRATH [DIN: 00391684] C RAMAKRISHNAN
Group Chief Financial Officer
R SPETH [DIN: 03318908]
Directors H K SETHNA [FCS: 3507]
Company Secretary
Mumbai, May 30, 2016
Mumbai, May 30, 2016

F-9
Balance Sheet
(` in crores)
Notes As at As at
March 31, 2018 March 31, 2017
I. ASSETS
(1) NON-CURRENT ASSETS
(a) Property, plant and equipment 3 18,192.52 17,897.12
(b) Capital work-in-progress 1,371.45 1,902.61
( c) Goodwill 99.09 99.09
(d) Other intangible assets 5 (a) 3,312.14 2,776.71
(e) Intangible assets under development 5 (b) 3,825.15 5,368.38
(f) Investments in subsidiaries, joint ventures and associates 6 13,950.60 14,330.02
(g) Financial assets
(i) Investments 8 310.19 528.37
(ii) Loans and advances 10 143.96 391.46
(iii) Other financial assets 12 793.40 196.32
(h) Non-current tax assets (net) 695.75 772.67
(i) Other non-current assets 14 1,546.39 1,858.45
44,240.64 46,121.20
(2) CURRENT ASSETS
(a) Inventories 16 5,670.13 5,553.01
(b) Investments in subsidiaries and associate (held-for-sale) 7 681.91 -
( c) Financial assets
(i) Investments 9 1,820.87 2,437.42
(ii) Trade receivables 17 3,479.81 2,128.00
(iii) Cash and cash equivalents 19 546.82 228.94
(iv) Bank balances other than (iii) above 20 248.60 97.67
(v) Loans and advances 11 140.27 215.96
(vi) Other financial assets 13 646.31 141.54
(d) Current tax assets (net) 73.88 129.49
(e) Assets classified as held-for-sale 47(iv) 223.33 -
(f) Other current assets 15 1,439.73 1,825.05
14,971.66 12,757.08
TOTAL ASSETS 59,212.30 58,878.28
II. EQUITY AND LIABILITIES
EQUITY
(a) Equity share capital 21 679.22 679.22
(b) Other equity 19,491.76 20,483.39
20,170.98 21,162.61
LIABILITIES
(1) NON-CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings 23 13,155.91 13,686.09
(ii) Other financial liabilities 25 211.28 1,130.23
(b) Provisions 27 1,009.48 892.18
( c) Deferred tax liabilities (net) 154.61 147.58
(d) Other non-current liabilities 30 291.09 321.24
14,822.37 16,177.32
(2) CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings 24 3,099.87 5,158.52
(ii) Trade payables [includes dues of micro and small enterprises ` 141.59 crores 9,411.05 7,082.95
(as at March 31, 2017 ` 125.11 crores)]
(iii) Acceptances 4,814.58 4,379.29
(iv) Other financial liabilities 26 4,091.16 2,485.94
(b) Provisions 28 862.92 477.17
( c) Current tax liabilities (net) 21.77 83.68
(d) Other current liabilities 31 1,917.60 1,870.80
24,218.95 21,538.35
TOTAL EQUITY AND LIABILITIES 59,212.30 58,878.28
See accompanying notes to financial statements

As per our report of even date attached For and on behalf of the Board

For B S R & Co. LLP N CHANDRASEKARAN [DIN: 00121863] N MUNJEE [DIN:00010180] GUENTER BUTSCHEK [DIN: 07427375]
Chartered Accountants Chairman CEO and Managing Director
Firm’s Registration No: 101248W/W-100022 V K JAIRATH [DIN:00391684]
S B BORWANKAR [DIN: 01793948]
F S NAYAR [DIN:00003633] ED and Chief Operating Officer
P B BALAJI
YEZDI NAGPOREWALLA O P BHATT [DIN:00548091] Group Chief Financial Officer
Partner
H K SETHNA [FCS: 3507]
Membership No. 049265 R SPETH [DIN:03318908]
Company Secretary
Mumbai, May 23, 2018
Directors Mumbai, May 23, 2018

192
INTEGRATED REPORT  1-65 STATUTORY REPORTS  66-184 FINANCIAL STATEMENTS  185-353

Statement of Profit and Loss

(` in crores)

Notes Year ended March Year ended March

31, 2018 31, 2017
I. Revenue from operations 32 59,624.69 49,054.49
II. Other Income 33 1,557.60 981.06
III. Total Income (I+II) 61,182.29 50,035.55
IV. Expenses
(a) Cost of materials consumed 37,080.45 27,651.65
(b) Purchases of products for sale 4,762.41 3,945.97
( c) Changes in inventories of finished goods, work-in-progress and products for sale 842.05 (252.14)
(d) Excise duty 32(2) 793.28 4,738.15
(e) Employee benefits expense 34 3,966.73 3,764.35
(f) Finance costs 35 1,744.43 1,569.01
(g) Foreign exchange (gain)/loss (net) 17.14 (252.78)
(h) Depreciation and amortisation expense 3,101.89 3,037.12
(i) Product development/Engineering expenses 474.98 454.48
(j) Other expenses 36 9,234.27 8,335.90
(k) Amount capitalised (855.08) (941.60)
Total Expenses (IV) 61,162.55 52,050.11
V. Profit/(loss) before exceptional items and tax (III-IV) 19.74 (2,014.56)
VI. Exceptional items
(a) Provision for impairment of investment in a subsidiary - 123.17
(b) Employee separation cost 3.68 67.61
( c) Provision for impairment of capital work-in-progress and intangibles under development 37(a) 962.98 -
(d) Others 37(b) - 147.93
VII. Profit/(loss) before tax (V-VI) (946.92) (2,353.27)
VIII. Tax expense/(credit) (net)
(a) Current tax 92.63 57.06
(b) Deferred tax (4.70) 19.27
Total tax expense/(credit) 87.93 76.33
IX. Profit/(loss) for the year from continuing operations (VII-VIII) (1,034.85) (2,429.60)
X. Other comprehensive income/(loss):
(A) (i) Items that will not be reclassified to profit and loss:
(a) Remeasurement gains and (losses) on defined benefit obligations (net) 18.24 8.24
(b) Equity instruments at fair value through other comprehensive income 44.04 73.84
(ii) Income tax (expense)/credit relating to items that will not be reclassified to
profit or loss (6.27) (3.12)
(B) (i) Items that will be reclassified to profit or loss - gains and (losses) in cash flow hedges (19.56) 23.32
(ii) Income tax (expense)/credit relating to items that will be reclassified to profit or loss 6.77 (8.07)
Total other comprehensive income/(loss), net of taxes 43.22 94.21
XI. Total comprehensive income/(loss) for the year (IX+X) (991.63) (2,335.39)
XII. Earnings per equity share (EPS) 39
(A) Ordinary shares (face value of ` 2 each) :
(i) Basic ` (3.05) (7.15)
(ii) Diluted ` (3.05) (7.15)
(B) ‘A’ Ordinary shares (face value of ` 2 each) :
(i) Basic ` (3.05) (7.15)
(ii) Diluted ` (3.05) (7.15)
See accompanying notes to financial statements

As per our report of even date attached For and on behalf of the Board

For B S R & Co. LLP N CHANDRASEKARAN [DIN: 00121863] N MUNJEE [DIN:00010180] GUENTER BUTSCHEK [DIN: 07427375]
Chartered Accountants Chairman CEO and Managing Director
Firm’s Registration No: 101248W/W-100022 V K JAIRATH [DIN:00391684]
S B BORWANKAR [DIN: 01793948]
F S NAYAR [DIN:00003633] ED and Chief Operating Officer
P B BALAJI
YEZDI NAGPOREWALLA O P BHATT [DIN:00548091] Group Chief Financial Officer
Partner
H K SETHNA [FCS: 3507]
Membership No. 049265 R SPETH [DIN:03318908]
Company Secretary
Mumbai, May 23, 2018
Directors Mumbai, May 23, 2018

73rd Annual Report 2017-18 193

 74th Annual Report (Abridged) 2018-19

Abridged Standalone Balance Sheet

[Statement containing salient features of Balance Sheet as per first proviso to Section 136(1) of the Companies Act, 2013 and
Rule 10 of Companies (Accounts) Rules, 2014]
(` in crores)
As at As at
March 31, 2019 March 31, 2018
I. ASSETS
(1) NON-CURRENT ASSETS
(a) Property, plant and equipment 18,316.61 18,192.52
(b) Capital work-in-progress 2,146.96 1,371.45
( c) Goodwill 99.09 99.09
(d) Other intangible assets 3,871.13 3,312.14
(e) Intangible assets under development 4,139.63 3,825.15
(f) Investments in subsidiaries, joint ventures and associates 14,770.81 13,950.60
(g) Financial assets
(i) Investments 663.38 310.19
(ii) Loans and advances 143.13 143.96
(iii) Other financial assets 994.39 793.40
(h) Non-current tax assets (net) 715.30 695.75
(i) Other non-current assets 1,819.90 1,546.39
47,680.33 44,240.64
(2) CURRENT ASSETS
(a) Inventories 4,662.00 5,670.13
(b) Investments in subsidiaries and associates (held-for-sale) 257.81 681.91
( c) Financial assets
(i) Investments 1,175.37 1,820.87
(ii) Trade receivables 3,250.64 3,479.81
(iii) Cash and cash equivalents 487.40 546.82
(iv) Bank balances other than (iii) above 819.21 248.60
(v) Loans and advances 200.08 140.27
(vi) Other financial assets 1,279.68 646.31
(d) Current tax assets (net) - 73.88
(e) Assets classified as held-for-sale 162.24 223.33
(f) Other current assets 934.87 1,439.73
13,229.30 14,971.66
TOTAL ASSETS 60,909.63 59,212.30
II. EQUITY AND LIABILITIES
EQUITY
(a) Equity share capital 679.22 679.22
(b) Other equity 21,483.30 19,491.76
22,162.52 20,170.98
LIABILITIES
(1) NON-CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings 13,919.81 13,155.91
(ii) Other financial liabilities 180.80 211.28
(b) Provisions 1,281.59 1,009.48
( c) Deferred tax liabilities (net) 205.86 154.61
(d) Other non-current liabilities 218.24 291.09
15,806.30 14,822.37
(2) CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings 3,617.72 3,099.87
(ii) Trade payables
(a) Total outstanding dues of micro and small enterprises 126.96 141.59
(b) Total outstanding dues of creditors other than micro and small enterprises 10,281.87 9,269.46
(iii) Acceptances 3,093.28 4,814.58
(iv) Other financial liabilities 2,237.98 4,091.16
(b) Provisions 1,148.69 862.92
( c) Current tax liabilities (net) 78.30 21.77
(d) Other current liabilities 2,356.01 1,917.60
22,940.81 24,218.95
TOTAL EQUITY AND LIABILITIES 60,909.63 59,212.30
Annexure I forms an integral part of the Abridged standalone financial statements

In terms of our report attached For and on behalf of the Board

For B S R & Co. LLP N CHANDRASEKARAN [DIN: 00121863] N MUNJEE [DIN:00010180] GUENTER BUTSCHEK [DIN: 07427375]
Chartered Accountants Chairman CEO and Managing Director
Firm’s Registration No: 101248W/W-100022 F S NAYAR [DIN:00003633]
S B BORWANKAR [DIN: 01793948]
V K JAIRATH [DIN:00391684] ED and Chief Operating Officer
YEZDI NAGPOREWALLA
Partner O P BHATT [DIN:00548091] P B BALAJI
Membership No. 049265 Group Chief Financial Officer
R SPETH [DIN:03318908]
H K SETHNA [FCS: 3507]
Directors Company Secretary
Mumbai, May 20, 2019 Mumbai, May 20, 2019
Note: Complete Balance Sheet, Statement of Profit and Loss, other statements and notes thereto prepared as per the requirements of Division II to the Schedule III to
the Companies Act, 2013 are available at the Company’s website at www.tatamotors.com

20
Abridged Standalone Statement of Profit and Loss

CORPORATE OVERVIEW (01-03)

[Statement containing salient features of Statement of Profit and Loss as per first proviso to Section 136(1) of the Companies Act, 2013
and Rule 10 of Companies (Accounts) Rules, 2014]
(` in crores)
Year ended Year ended
March 31, 2019 March 31, 2018
Revenue 68,764.88 58,234.33
Other operating revenue 437.88 455.48
I. Total revenue from operations 69,202.76 58,689.81
II. Other income 2,554.66 2,492.48
III. Total income (I+II) 71,757.42 61,182.29
IV. Expenses:
(a) Cost of materials consumed 43,748.77 37,080.45
(b) Purchases of products for sale 6,722.32 4,762.41
( c) Changes in inventories of finished goods, work-in-progress and products for sale 144.69 842.05
(d) Excise duty - 793.28

STATUTORY REPORTS (04-10)

(e) Employee benefits expense 4,273.10 3,966.73
(f) Finance costs 1,793.57 1,744.43
(g) Foreign exchange loss (net) 215.22 17.14
(h) Depreciation and amortisation expense 3,098.64 3,101.89
(i) Product development/Engineering expenses 571.76 474.98
(j) Other expenses 9,680.46 9,234.27
(k) Amount transferred to capital and other accounts (1,093.11) (855.08)
Total Expenses (IV) 69,155.42 61,162.55
V. Profit before exceptional items and tax (III-IV) 2,602.00 19.74
VI. Exceptional items:
(a) Employee separation cost 4.23 3.68
(b) Write off/provision of capital work-in-progress and intangibles under development (net) 180.66 962.98
( c) Provision for impairment of investments in subsidiary companies 241.86 -
(d) Profit on sale of investment in a subsidiary company (332.95) -
(e) Others (refer note 7(iii)) 109.27 -
VII. Profit/(loss) before tax (V-VI) 2,398.93 (946.92)
VIII. Tax expense/(credit) (net):

FINANCIAL STATEMENTS (11-74)

(a) Current tax (including Minimum Alternate Tax) 294.66 92.63
(b) Deferred tax 83.67 (4.70)
Total tax expense 378.33 87.93
IX. Profit/(loss) for the year from continuing operations (VII-VIII) 2,020.60 (1,034.85)
X. Other comprehensive income/(loss):
(A) (i) Items that will not be reclassified to profit or loss:
(a) Remeasurement gains and (losses) on defined benefit obligations (net) (67.14) 18.24
(b) Equity instruments at fair value through other comprehensive income 55.44 44.04
(ii) Income tax (expense)/credit relating to items that will not be reclassified to profit or loss 18.07 (6.27)
(B) (i) Items that will be reclassified to profit or loss - gains and (losses) in cash flow hedges (45.72) (19.56)
(ii) Income tax (expense)/credit relating to items that will be reclassified to profit or loss 15.92 6.77
Total other comprehensive income/(loss), net of taxes (23.43) 43.22
XI. Total comprehensive income/(loss) for the year (IX+X) 1,997.17 (991.63)

XII. Earnings per equity share (EPS):

(A) Ordinary shares (face value of `2 each) :
(i) Basic ` 5.94 (3.05)
(ii) Diluted ` 5.94 (3.05)
(B) ‘A’ Ordinary shares (face value of `2 each) :
(i) Basic ` 6.04 (3.05)
(ii) Diluted ` 6.04 (3.05)
Annexure I forms an integral part of the Abridged standalone financial statements

In terms of our report attached For and on behalf of the Board

For B S R & Co. LLP N CHANDRASEKARAN [DIN: 00121863] N MUNJEE [DIN:00010180] GUENTER BUTSCHEK [DIN: 07427375]
Chartered Accountants Chairman CEO and Managing Director
Firm’s Registration No: 101248W/W-100022 F S NAYAR [DIN:00003633]
S B BORWANKAR [DIN: 01793948]
V K JAIRATH [DIN:00391684] ED and Chief Operating Officer
YEZDI NAGPOREWALLA
Partner O P BHATT [DIN:00548091] P B BALAJI
Membership No. 049265 Group Chief Financial Officer
R SPETH [DIN:03318908]
H K SETHNA [FCS: 3507]
Directors Company Secretary
Mumbai, May 20, 2019 Mumbai, May 20, 2019
Note: Complete Balance Sheet, Statement of Profit and Loss, other statements and notes thereto prepared as per the requirements of Division II to the Schedule III to
the Companies Act, 2013 are available at the Company’s website at www.tatamotors.com

21
184 75th Integrated Annual Report 2019-20

Balance Sheet
(` in crores)
As at As at
Notes
March 31, 2020 March 31, 2019
I. ASSETS
(1) Non-current assets
(a) Property, plant and equipment 3 18,870.67 18,316.61
(b) Capital work-in-progress 1,755.51 2,146.96
( c) Right of use assets 4 (a) 669.58 -
(d) Goodwill 99.09 99.09
(e) Other intangible assets 5 (a) 5,568.64 3,871.13
(f) Intangible assets under development 5 (b) 2,739.29 4,139.63
(g) Investments in subsidiaries, joint ventures and associates 7 15,182.29 14,770.81
(h) Financial assets
(i) Investments 9 548.57 663.38
(ii) Loans and advances 11 138.46 143.13
(iii) Other financial assets 13 1,512.96 994.39
(i) Non-current tax assets (net) 727.97 715.30
(j) Other non-current assets 15 1,208.08 1,819.90
49,021.11 47,680.33
(2) Current assets
(a) Inventories 17 3,831.92 4,662.00
(b) Investments in subsidiaries and associate (held for sale) 8 - 257.81
( c) Financial assets
(i) Investments 10 885.31 1,175.37
(ii) Trade receivables 18 1,978.06 3,250.64
(iii) Cash and cash equivalents 20 2,145.30 487.40
(iv) Bank balances other than (iii) above 21 1,386.89 819.21
(v) Loans and advances 12 232.14 200.08
(vi) Other financial assets 14 1,546.56 1,279.68
(d) Assets classified as held for sale 50 (iv) 191.07 162.24
(e) Other current assets 16 1,371.51 934.87
13,568.76 13,229.30
Total assets 62,589.87 60,909.63
II. EQUITY AND LIABILITIES
Equity
(a) Equity share capital 22 719.54 679.22
(b) Other equity 17,668.11 21,483.30
18,387.65 22,162.52
Liabilities
(1) Non-current liabilities
(a) Financial liabilities
(i) Borrowings 24 14,776.51 13,914.74
(ii) Lease liabilities 522.24 5.07
(iii) Other financial liabilities 26 854.74 180.80
(b) Provisions 28 1,769.74 1,281.59
( c) Deferred tax liabilities (net) 198.59 205.86
(d) Other non-current liabilities 31 269.58 218.24
18,391.40 15,806.30
(2) Current Liabilities
(a) Financial liabilities
(i) Borrowings 25 6,121.36 3,617.72
(ii) Lease liabilities 83.30 3.64
(iii) Trade payables
(a) Total outstanding dues of micro and small enterprises 101.56 134.12
(b) Total outstanding dues of creditors other than micro and small enterprises 8,000.69 10,274.71
(iv) Acceptances 2,741.69 3,093.28
(v) Other financial liabilities 27 5,976.35 2,234.34
(b) Provisions 29 1,406.75 1,148.69
( c) Current tax liabilities (net) 31.49 78.30
(d) Other current liabilities 32 1,347.63 2,356.01
25,810.82 22,940.81
Total equity and liabilities 62,589.87 60,909.63
See accompanying notes to financial statements

In terms of our report attached For and on behalf of the Board

For B S R & Co. LLP
Chartered Accountants N CHANDRASEKARAN [DIN: 00121863] GUENTER BUTSCHEK [DIN: 07427375]
Firm’s Registration No: 101248W/W-100022 Chairman CEO and Managing Director
Place- Mumbai Place- Austria
YEZDI NAGPOREWALLA VEDIKA BHANDARKAR [DIN: 00033808] P B BALAJI
Partner Director Group Chief Financial Officer
Membership No. 049265 Place- Mumbai Place- Mumbai
UDIN: 20049265AAAAAP9940
Place- Mumbai H K Sethna [FCS: 3507]
Company Secretary
Date: June 15, 2020 Date: June 15, 2020 Place- Mumbai
Integrated Report Statutory Reports | Financial Statements > Standalone 185

Statement of Profit and Loss

(` in crores)
Year ended Year ended
Notes
March 31, 2020 March 31, 2019
Revenue from operations
Revenue 43,485.76 68,764.88
Other operating revenue 442.41 437.88
I. Total revenue from operations 33 43,928.17 69,202.76
II. Other Income 34 1,383.05 2,554.66
III. Total Income (I+II) 45,311.22 71,757.42
IV. Expenses
(a) Cost of materials consumed 26,171.85 43,748.77
(b) Purchases of products for sale 5,679.98 6,722.32
(c) Changes in inventories of finished goods, work-in-progress and products for sale 722.68 144.69
(d) Employee benefits expense 35 4,384.31 4,273.10
(e) Finance costs 36 1,973.00 1,793.57
(f) Foreign exchange loss (net) 239.00 215.22
(g) Depreciation and amortisation expense 3,375.29 3,098.64
(h) Product development/Engineering expenses 830.24 571.76
(i) Other expenses 37 7,720.75 9,680.46
(j) Amount transferred to capital and other accounts 38 (1,169.46) (1,093.11)
Total Expenses (IV) 49,927.64 69,155.42
V. Profit/(loss) before exceptional items and tax (III-IV) (4,616.42) 2,602.00
VI. Exceptional items
(a) Employee separation cost 2.69 4.23
(b) Write off/(reversal) of provision/ impairment of capital work-in-progress and intangibles
39 (a) (73.03) 180.66
under development (net)
(c) Provision for loan given to/investment in subsidiary companies/joint venture 385.62 241.86
(d) Profit on sale of investment in a subsidiary company 39 (b) - (332.95)
(e) Provision for impairment of Passenger Vehicle Business 6 (a) 1,418.64 -
(f) Provision for Onerous Contracts 6 (b) 777.00 -
(g) Others 39 (c) - 109.27
VII. Profit/(loss) before tax (V-VI) (7,127.34) 2,398.93
VIII. Tax expense (net) 30
(a) Current tax 33.05 294.66
(b) Deferred tax 129.24 83.67
Total tax expense 162.29 378.33
IX. Profit/(loss) for the year from continuing operations (VII-VIII) (7,289.63) 2,020.60
X. Other comprehensive income/(loss):
(A) (i) Items that will not be reclassified to profit or loss:
(a) Remeasurement losses on defined benefit obligations (net) (105.32) (67.14)
(b) Equity instruments at fair value through other comprehensive income (115.72) 55.44
(ii) Income tax credit relating to items that will not be reclassified to profit or loss 33.71 18.07
(B) (i) Items that will be reclassified to profit or loss - losses in cash flow hedges (294.19) (45.72)
(ii) Income tax credit relating to items that will be reclassified to profit or loss 102.80 15.92
Total other comprehensive loss, net of taxes (378.72) (23.43)
XI. Total comprehensive income/(loss) for the year (IX+X) (7,668.35) 1,997.17
XII. Earnings per equity share (EPS) 41
(A) Ordinary shares (face value of ` 2 each) :
(i) Basic ` (21.06) 5.94
(ii) Diluted ` (21.06) 5.94
(B) ‘A’ Ordinary shares (face value of ` 2 each) :
(i) Basic ` (21.06) 6.04
(ii) Diluted ` (21.06) 6.04
See accompanying notes to financial statements

In terms of our report attached For and on behalf of the Board

For B S R & Co. LLP
Chartered Accountants N CHANDRASEKARAN [DIN: 00121863] GUENTER BUTSCHEK [DIN: 07427375]
Firm’s Registration No: 101248W/W-100022 Chairman CEO and Managing Director
Place- Mumbai Place- Austria
YEZDI NAGPOREWALLA VEDIKA BHANDARKAR [DIN: 00033808] P B BALAJI
Partner Director Group Chief Financial Officer
Membership No. 049265 Place- Mumbai Place- Mumbai
UDIN: 20049265AAAAAP9940
Place- Mumbai H K Sethna [FCS: 3507]
Company Secretary
Date: June 15, 2020 Date: June 15, 2020 Place- Mumbai