Study on the Financial Performance of Tata

Motors Ltd.

Project Report Submitted to

ST. JOHN’S COLLEGE, AGRA

For the fulfillment of

Master of Commerce
In Accounts & Law (commerce) 2023-24

Under the supervision of

P.A. Joy
Department of Accounts and Law Faculty
of Commerce

Submitted by:-

Pratibha Yadav
Roll no: 2300038590147
Enrollment no: WRN222388550672
 Certificate

This is to certify that Pratibha Yadav a student pursuing her Master of Commerce

(M.Com), Accounts and Law successfully completed a research project on the

topic titled: "A study on the Financial Performance of Tata Motors Ltd. "

during the academic year [2022-23] as a part of her M.Com 1st year curriculum.

This research project was conducted under the guidance and supervision of P.A. Joy

whose expertise and guidance were invaluable in shaping the project.

I certify that this is her original effort & is free from any plagiarism. This project has

also not been submitted in any other University for the purpose of award of any

degree. This project fulfills the requirement of the curriculum prescribed by ST.

John’s College, Agra for the said course.

Project Guide

P. A. Joy

[Department of Commerce]

Signature
 Declaration of the Student

I the undersigned solemnly declare that the report of the project work entitled “A

study on the financial performance of Tata Motors Ltd.”, is based my own work

carried out during the course of my study under the supervision of P. A. Joy.

I assert that the statements made and conclusions drawn are an outcome of the

project work. I further declare that to the best of my knowledge and belief that

the project report does not contain any part of any work which has been submitted

for the award of any other degree/diploma/certificate in this University or any other

University.

(Signature of the Candidate)

Pratibha Yadav

M.Com Accounts & Law

(Previous Year) Roll No:

2300038590147
 Acknowledgement

I would like to express my sincere gratitude and appreciation to all those

who have contributed to the successful completion of this research
project, "A Study on the Financial Performance of Tata Motors Ltd."
Your support, guidance, and encouragement have been invaluable
throughout this journey.

First and foremost, I extend my heartfelt thanks to the management and

staff of Tata Motors Ltd. for granting me access to the necessary
financial data and resources required for this study. Your cooperation
and willingness to share insights were instrumental in making this
research comprehensive and insightful.

I am deeply indebted to my academic supervisor, P.A. Joy , whose

expertise, continuous guidance, and unwavering support guided me
through the entire research process. Your invaluable feedback and
constructive suggestions have greatly enriched the quality of this work.

I would also like to express my gratitude to my fellow researchers and

classmates who provided valuable insights and engaged in fruitful
discussions that contributed to the refinement of this study.

Last but not least, I am thankful to my friends and family for their
patience, encouragement, and understanding during the challenging
periods of this research endeavor.

This project would not have been possible without the collective efforts
and support of all these individuals and organizations. I am sincerely
grateful for your contributions.

Pratibha Yadav
 CONTENTS

1. Introduction

1.1 Background

1.2 Profile of the Company

1.3 Statement of the Problem

1.4 Research Methodology

1.5 Objectives of the study

1.6 Scope of the study

1.7 Limitations of the study

2. Review of Literature

3. Data Analysis and Interpretation

3.1 Data Analysis

3.2 Methods or Tools or Technique of Financial statement analysis

3.3 Importance of Ratio Analysis

3.4 Types of Ratio

3.5 Ratio Analysis

3.6 Income Statements of Tata Motors Ltd.

3.7 P & L Account

3.8 Balance Sheet from 2019 - 23

2
 4. Findings , Suggestion and Conclusion

4.1 Findings

4.2 Suggestion

4.3 Conclusion

BIBLIOGRAPHY

1
 Chapter 1
Introduction

2
 1. Introduction
Finance is an integral aspect of every business. The success of an
organization depends on how competently the firm is managing the funds
available to them. The topic for the project is “a study on the financial
performance of Tata Motors Limited”. There are many stakeholders in a
company, including trade creditors, bondholders, investors, employees,
and management. Each group has its own interest in tracking the financial
performance of a company. Understanding financial performance is
essential for every organization because most of the organization’s crucial
decisions depend on the financials. Understanding financial performance
is necessary because they help in the decision-making process of the
company. Financial performance analysis is the process of determining the
operating and financial characteristics of a firm from accounting and
financial statements. The goal of such analysis is to determine the
efficiency and performance of firm’s management, as reflected in the
financial records and reports.

The study on financial performance of the company is by using ratio

analysis, trend analysis and comparative statements to assess the solvency,
liquidity, and profitability of the selected company. Ratio analysis is a
quantitative method of gaining insight into a company's liquidity,
operational efficiency, and profitability by studying its financial
statements such as the balance sheet and income statement. A comparative
statement is a document used to compare a particular financial statement
with prior period statements. Previous financials are presented alongside
the latest figures in side-by-side columns, enabling investors to identify
trends, track a company's progress and compare it with industry rivals.

1
 1.1 BACKGROUND

Tata Motors Ltd is an Indian automotive manufacturing company and a part of the
TATA GROUP, One of largest and oldest conglomerates:

A. FOUNDATION:
Tata Motors was founded in1945 as Tata Engineering and Locomotives Co. Ltd
[TELCO] to manufacture locomotives and later ventured into commercial vehicle
production.

B. NAME CHANGE:
In 2003, it was renamed Tata Motors to reflect its focus on automotive manufacturing.

C. HEADQUARTERS:
The company is headquartered in Mumbai, India.

D. PRODUCTS:
Tata Motors is a global company with a significant presence in various countries.
They acquired British luxury car brands Jaguar and land Rover in 2008, expanding
their international footprint.

E. INNOVATION:
The company has been involved in the innovative initiatives, like producing the
world’s cheapest car [Tata Nano] and developing electric vehicles.

F. CORPORATE SOCIAL RESPONSIBILITY:

Tata Motors has been involved in various corporate social responsibility
initiatives, including community development, environment sustainability, and
education programs.

G. CHALLENGES:
Like other automakers, Tata Motors has faces challenges in terms of market
2
 competition, changing consumer preferences, and global economic
fluctuations.

H. RECENT DEVELOPMENT:
Beyond its core automotive business, Tata Motors has been working on the
electric and sustainable mobility solutions, reflecting the global trend towards
cleaner and more energy-efficient transportation.

I. FINANCIAL PERFORMANCES;
The company’s financial performance can vary based on market conditions,
but it remains one of the key players in the Indian automotive industry.

1
 1.2 PROFILE OF THE COMPANY

Certainly, here’s a profile of Tata Motors Ltd:

COMPANY NAME: Tata Motors Ltd Founded:

Tata Motors Limited (TML), a USD 42 billion organization, is India’s largest

automobile company by revenues. The company is a leading global manufacturer of

cars, utility vehicles, buses, trucks and defence vehicles and is working towards

developing Smart Mobility Solutions for Smart Cities. Tata Motors is also developing

a smart range of EVs, to accelerate the adoption of Electric Vehicles (EV) in the

country, supporting the government’s mission on electric vehicles.

Incorporated in India, in the year 1945, Tata Motors is a part of the USD 100 billion

Tata group and has operations across India, UK, South Korea, Thailand, South Africa,

and Indonesia.

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.

2
 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.

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.

1
 1.3 Statement of the problem

The effectiveness of the financial performance involves decision

making in the organization with the help of various analytical tools
to recognize the profitability, solvency and liquidity position and to
check whether the organization is in a position to meet their
obligations in properly and timely manner. Here the problem is to
study about the financial performance of Tata Motors Ltd.

Scope of study
The study was conducted in Tata Motors Ltd to analyze the
effectiveness of the financial performance of the company during the
last five years ranging from 2019-2020 to 2022-2023 to have a clear
and a proper outline regarding the financial aspects of the
organization by using various analysis tools.

Significance of study
● Assessing the operational efficiency and managerial effectiveness
of the company
● Analyzing the financial strengths and weaknesses and
credit worthiness of the company
● Providing information’s about the cash position company is
holding and how much debit the company has in relation to equity
● Studying the reasonability of stock and debtors held by the company

Objectives of the study

● To analyze the financial performance of the selected company
● To gain practical knowledge in analysis
● To assess the solvency, liquidity, and profitability.

2
 1.4 RESEARCH METHODOLOGY

i. Research design

a. Nature of study

This is an analytical study

b. Nature of data
Secondary data is used in the study, as the study mainly depended on
secondary data. .

c. Source of data
Secondary data is collected from company’s website.

d. Period of study
The study is based on the current year and past four years. That is 2019-2023.

ii. Sample design

a. Size of sample

The sample size is limited to one company. The company selected is

Tata Motors ltd.

iii. Tools of analysis

For analysis, the data collected through secondary source especially the
financial statements of the company, statistical tools such as ratio analysis
and comparative balance sheet are used and the results are interpreted
using tables, graphs and bar diagrams.

1
 1.5 LIMITATIONS OF STUDY

1. Study involves only automotive industry.

2. Study is mainly based on secondary data.

1.6 OBJECTIVES OF THE STUDY

 To analyze the financial position of the company.

 To make comparative study of financial statements of different years.

 To compare the Impact of ratios on the performance of company.

1.7 SCOPE OF THE STUDY

This study aims at analyzing the overall financial position of the Tata Motors by
using accounting ratios. The analysis covers the years 2019-2020, 2020-2021, 2021-
2022 and 2022-2023 for examining financial statements such as income statements
and balance sheets. The study's scope includes the numerous variables that influence
the company's financial position. The research takes into account data from the
previous five years.

1.7 LIMITATION OF THE STUDY

2
 This study has the following limitations:

 We only analyzed last five years’ financial statements which does not represent the
whole profitability of the company.

 The data used in the analysis is based on the company's own published past results.
As a result, ratio analysis metrics are not always indicative of future company
performance.

 Financial statements used for financial analysis are prepared based on a going concern
concept, so they do not always reflect the current situation.

1
 Chapter II
REVIEW
OF
LITRETURE

22
 2.1 Review of Literature

Some important research works undertaken in recent years which are very closely
connected with the present study are reviewed.

 Shinde Govind P. & Dubey Manisha (2011) the study has been conducted
considering the segments such as passenger vehicle, commercial vehicle,
utility vehicle, two and three wheeler vehicle of key players performance and
also analyze SWOT analysis and key factors influencing growth of
automobile industry.

 Sharma Nishi (2011) studied the financial performance of passenger and

commercial vehicle segment of the automobile industry in the terms of four
financial parameters namely liquidity, profitability, leverage and managerial
efficiency analysis for the period of decade from 2001-02 to 2010-11. The
study concludes that profitability and managerial efficiency of Tata motors as
well as Mahindra & Mahindra ltd are satisfactory but their liquidity position
is not satisfactory. The liquidity position of commercial vehicle is much
better than passenger vehicle segment.

 Singh Amarjit & Gupta Vinod (2012) explored an overview of automobile

industry. Indian automobile industry itself as a manufacturing hub and many
joint ventures have been setup in India with foreign collaboration. SWOT
analysis done there are some challenges by the virtue of witch automobile
industry faces lot of problems and some innovative key features are keyless
entry, electrically controlled mechanisms enhanced driving control, soft feel
interiors and also need to focus in future on like fuel efficiency, emission
reduction safety and durability.

 Zafar S.M.Tariq & Khalid S.M (2012) the study explored that ratios are
calculated from financial statements which are prepared as desired policies
adopted on depreciation and stock valuation by the management. Ratio is
simple comparison of numerator and a denominator that cannot produce

23
 complete and authentic picture of business. Results are manipulated and may
not highlight other factors which affect performance of firm by promoters.

 Ray Sabapriya (2012) studied the sample of automobile companies to evaluate

the performance of industry through indicators namely sales, production and
export trend etc for period of 2003-04 to 2009-10. The study finds that
automobile industry has been passing through disruptive phases by over debt
burden, under utilization of assets and liquidity instability. The researcher
suggested to improving the labour productivity, labour flexibility and capital
efficiency for success of industry in future.

 Dawar Varun (2012) Study to analyze the effect of various fundamental

corporate policy variables like dividend, debit, capital expenditure on stock
prices of automobile companies of India. The study tends that dividend &
investment policy are relevant and capital structure irrelevant to stock prices.

 Mistry Dharmendra S. (2012) understood a study to analyze the effect of

various determinants on the profitability of the selected companies. It
concluded that debt equity ratio, inventory ratio, total assets were important
determinants which effect positive or negative effect on the profitability. It
suggerted to improve solvency as to reduce fixed financial burden on the
company profit & give the benefit of trading on equity to the shareholders.

 Murlidhar, A. Lok Hande & Rana Vishal S. (2012) the author tries to evaluate
the performance of Hyundai Motors Company with respect to export,
Domestic Sales, productions and profit after tax. For this purpose, the pie
chart and bar graph are used to show the performance of company various
years.

 Dharmaraj, A.and Kathirvel N. (2013) explored an overview of new industrial

policy act 1991, which allow 100 percent foreign direct investment. An
attempt is maden to find out the effect of FDI on financial performance of
automobile industry. It is concluded that the liquidity ratios shows minor
changes and profitability shows an increasing trend during post FDI when
24
 compared to pre FDI. Post FDI efficiency ratio shows that companies are
efficiently utilizing the available resources.

 Rapheal Nisha (2013) the author tries to evaluate the financial performance of
Indian tyre industry. The study was conducted for period 2013-14 to 2021-22
to analyze the performance with financial indicators, sales trend, export trend,
production trend etc. The result suggests the key to success in industry is to
improve labour productivity and flexibility and capital efficiency.

 Hotwani Rakhi (2013) the author examines the profitability position and growth
of company in light of sales and profitability of Tata Motors for past ten years.
Data is analyzed through rations, standard deviations and coefficient of variance.
The study reveals that there not exists a strong relationship between sales &
profitability of company.

 Sharma Rashmi, Pande Neeraj & Singh Avinash (2013) for understanding how
social media monitoring can help diving the consumer decision & also study. The
functions of social media i.e. monitor, responses amplify and lead at maruti
Suzuki India ltd. The researcher had discussion with social media team median
managers for collecting data & also visited the official social media sites of
MSIL.

 Daniel A. Moses Joshunar (2013) the study has been conducted to identify the
financial strength and weakness of the Tata motors Ltd. using past 5 year financial
statements. Trend analysis & ratio analysis used to comment of financial status of
company. Financial performance of company is satisfactory and also suggested to
increase the loan levels of company for the better performance.

 Dhole Madhavi (2013) Investing the impact of price movement of share on

selected company performance. It advise due investors consider various factors
before choosing the better portfolio. Sentimental factors do play a role in price
movement only in short term but in long run annual performance is sole factor
responsible for price movement.

25
  Shende Vikram (2014) this research will be helpful for the new entrants and
existing car manufacturing companies in India to find out the customer
expectations and their market offerings. The objective of study is the
identification of factors influencing customers performance for particular segment
of cars.

 Azhagaiah R. & Gounasegaran (2014) recognized India’s per capita real GDP
growth as one of key drivers of growth for country’s automobile industry. The
central government would be set up various task forces on issue related to taxation,
land acquisitions, labour reform and skill development for auto industry.

 Buvaneswari .R & Kanimozhip (2014) to study the credit worthiness of

selected firms in Indian car industry, tiruchy. Professor Edward Altman of
New York University developed method Z score analysis to predict the
company failure or bankruptcy. To measure the fiscal fitness of a company
combined a set of five financial ratios.

 Idhayajothi, R et al (2014) the main idea behind this study is to analyze the
financial performance of Ashoka Leyland ltd. at Chennai. The result shows
that financial performance is sound and also suggested to improve financial
performance by reducing the various expenses.

 Huda Salhe Meften & Manish Roy Tirkey (2014) have studied the financial
analysis of Hindustan petroleum corporation ltd. The study is based on
secondary data. The company has got excellent gross profit ratio and trend is
rising in with is appreciable indicating efficiency in production cost. The net
profit for the year 2010-11 is excellent & it is 8 times past year indicating
reduction in operating reduction in operating expenses and large proportion of
net sales available to the shareholders of company.

• Srivastava Anubha (2014) Data analysis has been done using the top down approach
,i.e. Economic analysis, industry analysis, company and technical analysis to find
relationship between automobile sector index with market index. Mahindra and
Mahindra have a great position on the stock market and will attract investor and this
could lead to expansion and growth. Thus Tata motors and Maruti Suzuki need to

26
 take care of their stock and expansion.

 Sarangi Pradeepta K et al (2014) undertook a study to forecast the future trend

of automobile industry. The study highlighted the six different experiments
have been carried out for period of 12 years data to estimate values for next 3
years. In each experiment graph has been plotted using spreadsheet and then
linear trend has been drawn and expanded to calculate future values.

 Kumar Sumesh & Kaur Gurbachan (2014) Automobile sector is the dominant
player in economy of world. After liberalization Indian automobile industry
has emerged as a major contributor to India’s GDP. The study identified that
there is no significant in the means score of various financial ratios of Maruti
Suzuki and Tata motors but in meeting their long term obligations and
efficacy of utilizing the assets show the significant difference in the efficiency
of both the firms.

 Krishnaveni, M. & Vidya, R. (2015) find that Indian automobile industry is a

high flying sector these days and emerging as an export hub in wake of
liberalisation and globalization. This paper revises the category wise
production, sales and exports of automobile industry in India. Industry growth
can be viewed in term of pre and post liberalization. As government allows
100 percent FDI, increase 15% in customs duty on cars and MUVs to
encourage local manufacturer and concessional import duty on specified parts
of hybrid vehicles.

 Sarwade Walmik Kachru (2015) analyzed the effects of liberalization,

government de- licensing and liberal trade policies on the growth of Indian
auto mobile industry .The study recommends that investing four- wheeler is
going to be smart potion not only in India but all around the world.

 Becker Dieter (2023) the report shows about the current state and future
prospects of the worldwide automobile industry. This survey report the
manufacturer, executive and consumer views about four aspects, mobility
culture, technological fit, business model readiness and market share.

27
  Surekha B. & Krishnalah K.Rama (2015) this study reveals the prosperity of
Tata motors company. It can be concluded that inner strength of company is
remarkable. Company can further improve its profitability by optimum capital
gearing, reduction in administration and financial expenses for the growth of
company.

 Anu B. (2015) made an attempt to examine the relationship between capital

structure indicators, market price per shares and also to test relationship
between debt-equity and market price per share of selected companies in
industry. The study Concludes that all three companies support the hypothesis
that there is relation between debt-equity and MPS.

 Maheswari, V. (2015) made an attempt to analyze the financial soundness of

the Hero Honda motors limited have identified three factors, namely liquidity
position, solvency position and profitability position based on the study of
period 2002 to 2010 using ratio analysis.

 Agarwal, Nidhi (2015) the study focus on the comparative financial

performance of Maruti Suzuki and Tata motors ltd. The financial data and
information required for the study are drawn from the various annual reports
of companies. The liquidity and leverage analysis of both the firms are done.
To analyze the leverage position four ratios are considered namely, capital
gearing, debt-equity, total debt and proprietary ratio. The result shows that
Tata motors ltd has to increase the portion of proprietor’s fund in business to
improve long term solvency position.

 Nandhini, M. & Sivasalthi, V.(2015) have studied the impact of both financial
leverage as well as operating language on the profitability of TVS motor
company. The result shows that company suffers from certain weakness &
suggested to control fixed cost as well as variable cost to gain adequate
profits.

 Jothi, K. & Kalaivani, P. (2015) studied the comparative performance of

Honda Motors and Toyota Motor that both companies have satisfactory short
term liquidity position. As for as cash ratio concerned Honda company has
28
 upper hand upper hand in sound cash management practice during the study
period. In case of profitability it is rising from the both of companies but
remained much higher earning potential in Honda motor ltd.

 Krishnaveni , M. & Vidya, R (2015) author has selected 87 companies out of

242 companies in capital line database to discuss the standard current ratio of
automobile industry is matched with tractor and four sectors like engine parts,
lamps, gears and ancillaries with standard norms. The study concludes that
current and liquidity ratio of automobile industry is matched with tractor and
the four sectors but other sectors have to improve the repaying capacity to
strengthen the financial aspects.

 Takeh Ata & Navaprabha Jubility (2015) Author has made conceptual model
to outline the impact of capital structure on the financial performance i.e.
capital structure is independent variable that value is measured by using four
ratios namely, financial debt, total debt equity, total asset debt and interest
coverage ratio where as financial performance is dependent variable that value
is measured by using four ratios as return on assets, return on equity ,
operating profit margin and return on capital employed.Researcher has
selected 13 major steel industries and applied various statistical tools like
standard deviation, correlation matrix, anova etc are employed for testing
hypothesis with help of SPSS22.

 Kumar Rakesh Rasiklalajani & Bhatt Satyaki J. (2016) the proposed research
is intended to examine the trend and pattern of financing the capital structure
of Indian companies. The study is to analyze the determinants of total debt
ratios as well as determinants of short term and long term ratios.

 Kumar Neeraj & Kaur Kuldip (2016) made an attempt to test the size and
profitability relationship in the Indian automobile industry. To analyze the
relationship linear regression model as well as cross-sectional has been
employed for the year 1998 to 2014. For profitability analysis two different
measures have been used (i) ratio of net profit to total sales turnover (ii) ratio
of net income to net assets plus working capital and for form size two

29
 indicators used namely, total sales turn over and net assets. The time series
analysis showed the positive relationship between firm size and profitability
but cross- sectional show no relationship between firm size and profitability.

 Ravichandran, M. & Subramanium M Venkata (2016) the main idea behind

this study is to assessment of viability, stability and profitability of Force
motors limited.Operating position of the company can be measured by using
various financial tools such as profitability ratio, solvency ratio, comparative
statement & graphs etc. This study finds that company has got enough funds
to meet its debts & liabilities. Company can further improve financial
performance by reducing the administrative, selling & operating expenses.

 Mathur Shivam & Agarwal Krati (2016) Ratio’s are an excellent and scientific
way to analyze the financial performance of any firm. The company has
received many awards and achievements due to its new innovations and
technological advancement.These indicators help the investors to invest the
right company for expected profits. The study shows that Maruti Suzuki
limited is better than Tata motors limited.

 Jothi, K. & Geethalakshmi, A. (2016) this study tries to evaluate the

profitability & financial position of selected companies of Indian automobile
industry using statistical tools like, ratio analysis, mean, standard deviation,
correlation. The study reveals the positive relationship between profitability,
short term and long term capital.

 Kumar Mohan M.S, Vasu. V. and Narayana T. (2016) the study has been made
through using different ratios , mean, standard deviation and Altman’s Z score
approach to study the financial health of the company. The study reveals there
is a positive correlation between liquidity and profitability ratios except return
on total assets as well as Z score value indicate good health of the company.

 Kaur Harpreet (2016) the author tries to examine the qualities & quantities

30
 performer of maruti Suzuki co. & how had both impact on its market share in
India, For this study secondary data has been collected from annual reports,
journals, report automobile sites.

Result shows that MSL has been successfully leading

automobile sector in India for last

31
 CHAPTER III

Data Analysis
and
Interpretation

32
 3.1 Data Analysis
Data analysis is a process of inspecting, cleansing, transforming, and modeling data

with the goal of discovering useful information, informing conclusions, and

supporting decision-making. Data analysis has multiple facets and approaches,

encompassing diverse techniques under a variety of names, and is used in different

business, science, and social science domains. In today’s business world, data analysis

plays a role in making decisions more scientific and helping businesses operate more

effectively. Although many groups, organizations, and experts have different ways to

approach data analysis, most of them can be distilled into a one-size-fits-all definition.

Data analysis is the process of cleaning, changing, and processing raw data, and

extracting actionable, relevant information that helps businesses make informed

decisions. The procedure helps reduce the risks inherent in decision making by

providing useful insights and statistics, often presented in charts, images, tables, and

graphs.

3.2 Methods or tools or technique of financial

statement analysis

Ratio analysis – Ratio analysis is a technique of analysis, comparison and

interpretation of financial statement. It is a process through which various

ratio are calculated and on that basis conclusions are drawn which become the

base of managerial decision.

33
 Ratio analysis is the comparison of line items in the financial statements of a

business. Ratio analysis is used to evaluate a number of issues with an entity,

such as its liquidity, efficiency of operations, and profitability. This type of

analysis is particularly useful to analysts outside of a business, since their

primary source of information about an organization is its financial

statements.

3.3 Importance of ratio analysis

1. Financial Statement Analysis- Understanding financial statements are

important for stakeholders of the company. Ratio analysis helps in

understanding the comparison of these numbers; furthermore, it helps in

estimating numbers from income statements and balance sheets for the

future. For e.g. Equity shareholder looks into the P/E ratio, the Dividend

payout ratio, etc. while creditors observe Debt to Equity ratio, Gross margin

ratio, Debt to asset ratio, etc.

2. Efficiency of Company-Ratio analysis is important in understanding the

company’s ability to generate profit. Return on Asset, Returns on Equity

tell us how much profit the company is able to generate over assets of the

firm and equity investments in the firm, while gross margin and operating

margin ratios tell us the company’s ability to generate profit from sales and

operating efficiency.

3. Planning and Forecasting- From a Management and investor point of view,

ratio analysis helps to understand and estimate the company’s future

financials and operations. Ratios formed from past financial statement

analysis helps in estimating future financials, budgeting, and planning for the
34
 future operations of the company.

4. Identifying Risk and Taking Corrective Actions- The company operates

under various business, market, operations related risks. Ratio analysis

helps in understanding these risks and helps management to prepare and

take necessary actions. Leverage ratios help in performing sensitivity

analysis of various factors affecting the company’s profitability like sales,

cost, debt. Financial leverage ratios like Interest Coverage ratio and Debt

Coverage ratio tell how much the company is dependent on external capital

sources and the company’s ability to repay debt.

5. Peers Comparison- Investor, as well as the company’s management, makes

a comparison with Competitors Company to understand efficiency,

profitability and market share. Ratio analysis is helpful for companies to

perform SWOT (Strengths, Weakness, Opportunities, and Threats) analysis

in the market. It also tells whether the company is able to perform growth or

not over a period from past financials and whether the company’s financial

position is improving or not.

6. Financial Solvency- The company’s ability to pay short-term debt is

determined by liquidity. Current Ratio, Acid-test ratio tells us whether a

company is able to pay its short-term obligation within a year. The

company continuously runs analysis on past financial statements to

understand and prepare for payment of short-term obligations.

7. Decision Making- Ratios provide important information on the operational

efficiency of the company, and the utilization of resources by the company.

It helps management to forecast and planning for future, new goals,

concentrate on the different markets, etc.

35
 3.4 Types of Ratio

Liquidity ratios

liquidity refers to the ability of a concern to meet its current obligations as and

when they become due. Liquidity ratios measures the short term solvency of a

business and for this purpose following ratio can be computed:

a) Current ratio = current ratio is a most widely used ratio to judge short

term financial position or solvency of a firm. it can be defined as relationship

between current assets and current liabilities. current ratio of 2 : 1 is considered

as satisfactory.

Current Ratio= current assets / current liabilities

b) Liquid Ratio = it is also called as Quick ratio or Acid test ratio,

measures the ability of business to pay its short term liabilities by having assets

that are readily converted into cash. These assets are namely cash, marketable

securities and account receivables.

Liquid Ratio= current asset–inventory–prepaid expenses /current liabilities

c) Absolute liquid Ratio= This ratio is also known as super quick ratio and

establishes relationship between absolute liquid assets and liquid liabilities.

The ideal level of absolute liquid ratio is 0.5 : 1 .

Absolute liquid ratio= cash and bank balance/current liabilities

36
 d) Cash ratio = the cash ratio is a measures of the liquidity of a firm,

namely the ratio of the total assets and cash equivalents.

Cash ratio= cash and bank balance/ current assets

Solvency Ratio
Solvency ratio - this ratio examines whether the total realizable amount from

all assets of a firm is enough to pay all of its external liability or not. In this

context this ratio shows the relationship between total assets and external

liabilities of the firm.

Solvency means ability of a firm to pay its liability on due date. Solvency is

tested on the basis of the ability of the concern to pay its long term liability at

due time. The ratios to be used for this purpose are called as ‘ ratio of financial

position’ or stability ratio. The main ratio of this category are as follows;

a) Debt equity Ratio- this ratio reflects the long term financial position of a

firm and is calculated in the form of relationship between external equities or

outsider’s funds and internal equities or shareholders fund. Debt equity ratio

may also be called as ‘ratio long term debt to shareholders funs’.

Debt Equity Ratio= long term debts/ shareholder funds Or debt/equity

b) Proprietary ratio- This ratio indicates the relationship between

proprietors fund and total assets. Greater is the proprietor funds better is the

position of the creditor.

Proprietary ratio=proprietary funds or shareholders funds/Total assets

37
 Profitability ratio

Profitability ratio is used to evaluate the company’s ability to generate income

as compared to its expenses and other cost associated with the generation of

income during a particular period. This ratio represents the final result of the

company.

The main category of this ratio are :

a) Gross profit ratio-

This ratio measures the marginal profit of the company. This ratio is also used

to measure the segment revenue. A high ratio represents the greater profit

margin and it’s good for the company.

Gross profit ratio = Gross Profit /Sales × 100

Gross Profit= Sales + Closing Stock – opening stock – Purchases – Direct

Expenses

a) Net profit ratio –

This ratio measures the overall profitability of company considering all direct

as well as indirect cost. A high ratio represents a positive return in the company

and better the company is.

Net profit ratio = Net Profit / Sales × 100

Net Profit = Gross Profit + Indirect Income – Indirect Expenses

38
 b) Return on equity –

This ratio measures Profitability of equity fund invested the company.

It also measures how profitably owner’s funds have been utilized to generate

company’s revenues. A high ratio represents better the company is.

Return on equity =Profit after Tax/ Net worth x 100

Where, Net worth = Equity share capital, and Reserve and Surplus

c) Return on capital employed-

Return on capital employed (ROCE) is a financial ratio that can be used in

assessing a company's profitability and capital efficiency. In other words, this

ratio can help to understand how well a company is generating profits from its

capital as it is put to use.

Return on capital employed (ROCE) = net profit before interest and tax /

capital employed X 100

d) Operating profit ratio –

Operating profit ratio establishes a relationship between operating Profit earned

and net revenue generated from operations (net sales). operating profit ratio

is a type of profitability ratio which is expressed as a percentage.

Operating profit ratio = operating profit / net sales X 100

39
 3.5 RATIO ANALYSIS

A) LIQUIDITY RATIO

1. CURRENT RATIO

Current ratio is a liquidity ratio that measures a company’s ability to pay short-term

obligations. In a sound business a current ratio of 2:1 is considered an ideal one. High

ratio indicates sound solvency and low ratio indicates inadequate working capital.

Current ratio is an index of the firm’s financial stability.

Current Ratio = Current Asset/Current Liabilities.

CURRENT CURRENT CURRENT

YEAR
ASSESTS (Cr.) LIABILITY (Cr.) RATIO

2023 151,528.47 155,027.33 0.98

2022 146,977.54 150,682.81 0.98

2021 146,887.64 157,749.18 0.93

2020 119,587.25 140,454.05 0.85

2019 123,431.16 145,457.43 0.85

40
 1

0.95

0.9

0.85

0.8

0.75
2023 2022 2021 2020 2019

2. QUICK RATIO

This ratio is also known as Acid test ratio or Liquid ratio. It is the best measure of the

liquidity of the company. It shows the ability of business to meet its immediate

financial commitments. Quick ratio is more conservative than the current ratio. The

quick asset is computed by adjusting current asset to eliminate those assets which are

not in cash.

Quick ratio /Acid Test Ratio = Quick Assets/Current liabilities

YEAR QUICK ASSET CURRENT QUICK RATIO

(Cr.) LIABILITY
(Cr.)

2023 110,773.08 155,027.33 0.71

2022 111,737.2 150,682.81 0.74

2021 110799.05 157,749.18 0.70

2020 82130.37 140,454.05 0.58

41
 2019 84417.43 145,457.43 0.58

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2023 2022 2021 2020 2019

3. ABSOLUTE LIQUIDITY RATIO

This is also known as super quick ratio or cash ratio. In calculating this ratio, both

inventories and receivables are deducted from the current assets to arrive at absolute

liquid asset such as cash , bank and easily marketable investments in securities.The

ideal Absolute liquidity ratio is 1:2 Higher the ratio, the higher is the cash liquidity.

Absolute liquid ratio = Absolute liquid assets/Current liability.

YEAR ABSOLUTE CURRENT ABSOLUTE

LIQUID ASSET LIABILITIES LIQUIDITY
(Cr.) (Cr.) RATIO

2023 37,015.56 155,027.33 0.23

42
 2022 37,015.56 150,682.81 0.24

2021 37,015.56 157,749.18 0.23

2020 37,015.56 140,454.05 0.27

2019 37,015.56 145,457.43 0.25

0.28

0.27

0.26

0.25

0.24

0.23

0.22

0.21
2023 2022 2021 2020 2019

B) SOLVENCY RATIO

4. DEBT EQUITY RATIO

This ratio indicate the relative proportion of debt and equity in financing the assets of

a firm. An acceptable norm for this ratio is considered to be 2:1 . A high ratio shows

that the claim of creditors are greater those of owners.From the point of view of the

43
 company, the lower this ratio, the less company has to worry in meeting its fixed

obligations.

Debt equity ratio = Outsider Funds (Total Debts)/Shareholder Funds or Equity

YEAR DEBT (Cr.) EQUITY (Cr.) DEBT

EQUITY
RATIO

2023 919.22 766.02 1.2

2022 995.64 765.88 1.3

2021 1301.87 765.81 1.7

2020 1582.98 719.54 2.2

2019 1358.44 679.22 2.0

2.5

1.5

0.5

0
2023 2022 2021 2020 2019

44
 5. PROPRIETARY RATIO

Proprietary ratio shows the extent to which shareholders own the business and thus

indicates the general financial strength of the business.A higher ratio indicated a

secured position to the creditors of the company and low ratio indicate that the

creditors will have no guarantee for their money.

Proprietary (equity) ratio = Shareholder funds/Total assets

YEAR SHAREHOLDERS TOTAL ASSET PROPRIETARY

FUND (Cr.) (Cr.) RATIO

2023 45,319.33 336,081.38 0.13

2022 44,554.85 330,619.93 0.13

2021 55,246.72 343,125.80 0.16

2020 63,078.53 322,121.26 0.20

2019 60,179.56 307,194.53 0.20

0.25

0.2

0.15

0.1

0.05

0
2023 2022 2021 2020 2019

45
 6. FIXED ASSET TO NET WORTH RATIO

This ratio shows the relationship between fixed assets and shareholder’s

fund. The purpose of this ratio is to find out the percentage of the owners

fund is invested in fixed assets such as property, plant and equipment ,

and the extent to which funds are available for the company’s operation.

If the ratio is greater than 1, it means that creditor’s funds have been used

to acquire a part of the fixed assets.

Fixed assets to net worth ratio = Fixed Assets / Shareholders fund

YEAR FIXED SHAREHOLDERS RATIO

ASSET (Cr.) FUND (Cr.)

2023 145,513.66 45,319.33 3.21

2022 148,299.37 44,554.85 3.32

2021 158,867.82 55,246.72 2.87

2020 161,952.37 63,078.53 2.56

2019 142,370.44 60,179.56 2.36

46
 3.5

2.5

1.5

0.5

0
2023 2022 2021 2020 2019

C) ACTIVITY RATIO

7. WORKING CAPITAL TURN OVER RATIO

The Working capital turnover ratio measures how efficiently a company using its

working capital in making sales. A high ratio shows the efficient utilization of

working capital in generating sales. A low ratio, on the other hand, may indicate

excess of net working capital. The ratio thus shows whether working capital is

efficiently utilized or not.

Working Capital Turnover Ratio=Net Sales/Working Capital

YEAR NET SALES (Cr.) WORKING RATIO

CAPITAL (Cr.)

2023 65,298.84 -3.498.86 -18.66

2022 46,880.97 -3705.27 -12.65

47
 2021 29,769.07 -10861.54 -2.74

2020 43,485.76 -20866.8 -2.08

2019 68,764.88 -22026.27 -3.12

0
2023 2022 2021 2020 2019
-2

-4

-6

-8

-10

-12

-14

-16

-18

-20

8. CAPITAL TURNOVER RATIO

Capital turnover ratio shows how much sales are entertained from the capital.A high

capital turnover ratio indicates the capability of the organization to achieve maximum

sales with minimum amount of capital employed.

Capital Turnover Ratio = Net sales / Shareholders fund

YEAR NET SALES SHAREHOLDERS RATIO

(Cr.) FUND (Cr.)
1.44
2023 65,298.84 45,319.33

48
 1.05
2022 46,880.97 44,554.85
0.53
2021 29,769.07 55,246.72

0.68
2020 43,485.76 63,078.53
1.14
2019 68,764.88 60,179.56

49
 3.6 Income Statement of Tata Motors Ltd.
2023 2022 2021 2020 2019
3,516,42 2,776,74 2,507,74 2,658,82 3,088,94
Sales/Revenue
0 5 9 0 6

Sales Growth 26.64% 10.73% -5.68% -13.92% -

Cost of Goods
2,959,61 2,443,48 2,174,88 2,299,93 2,656,94
Sold (COGS)
6 5 9 3 2
incl. D&A
COGS 2,711,01 2,195,12 1,939,42 2,085,67 2,421,03
excluding D&A 2 8 2 9 6
Depreciation &
Amortization 248,604 248,357 235,467 214,254 235,906
Expense
Depreciatio
129,063 121,841 120,450 117,266 122,004
n
Amortization
of 119,540 126,516 115,017 96,988 113,902
Intangibles

COGS Growth 21.12% 12.35% -5.44% -13.44% -

Gross Income 556,804 333,259 332,860 358,887 432,004

Gross Income
67.08% 0.12% -7.25% -16.93% -
Growth
Gross Profit
15.83% - - - -
Margin

SG&A Expense 303,978 254,011 191,055 215,239 237,040

Research &
106,620 92,095 52,266 41,885 42,246
Development

Other SG&A 197,358 161,916 138,789 173,354 194,794

SGA Growth 19.67% 32.95% -11.24% -9.20% -

Other Operating
104,363 92,032 69,460 116,616 118,907
Expense

EBIT 148,463 (12,784) 72,345 27,032 76,057

Unusual
5,788 1,025 129,869 28,493 283,506
Expense

50
 2023 2022 2021 2020 2019
Non Operating
(22,371) 21,659 20,545 (53,141) (69,167)
Income/Expense
Non-Operating
12,512 6,252 4,925 11,701 7,865
Interest Income

Interest Expense 102,241 84,137 72,689 62,900 44,961

Interest
Expense 21.52% 15.75% 15.56% 39.90% -
Growth
Gross Interest
105,224 89,874 84,051 77,366 60,089
Expense
Interest
2,983 5,737 11,362 14,466 15,129
Capitalized

Pretax Income 30,576 (70,034) (104,743) (105,800) (313,712)

Pretax Income
143.66% 33.14% 1.00% 66.27% -
Growth

Pretax Margin 0.87% - - - -

Income Tax 7,041 42,313 25,419 3,953 (24,375)

Income Tax -
Current 4,469 3,397 1,364 18,931 22,252
Domestic
Income Tax -
Current 28,114 23,303 15,738 - -
Foreign
Income Tax -
Deferred (14,963) (124) 147 (14,978) (46,627)
Domestic
Income Tax -
Deferred (10,580) 15,737 8,170 - -
Foreign
Equity in
3,364 (741) (3,790) (10,000) 2,095
Affiliates
Consolidated
26,899 (113,088) (133,951) (119,752) (287,242)
Net Income
Minority Interest
2,756 1,327 563 956 1,020
Expense

Net Income 24,143 (114,415) (134,514) (120,709) (288,262)

51
 2023 2022 2021 2020 2019
Net Income
121.10% 14.94% -11.44% 58.13% -
Growth

Net Margin 0.69% - - - -

Net Income After

24,143 (114,415) (134,514) (120,709) (288,262)
Extraordinaries
Net Income
Available to 24,143 (114,415) (134,514) (120,709) (288,262)
Common

EPS (Basic) 6.26 (29.68) (36.73) (34.62) (84.26)

EPS (Basic)
121.10% 19.18% -6.08% 58.91% -
Growth
Basic Shares
3,855 3,854 3,662 3,486 3,421
Outstanding

EPS (Diluted) 6.26 (29.68) (36.73) (34.62) (84.26)

EPS (Diluted)
121.09% 19.18% -6.08% 58.91% -
Growth
Diluted Shares
3,857 3,854 3,662 3,486 3,421
Outstanding

EBITDA 397,067 235,573 307,812 241,287 311,963

EBITDA
68.55% -23.47% 27.57% -22.66% -
Growth
EBITDA
11.29% - - - -
Margin

EBIT 148,463 (12,784) 72,345 27,032 76,057

52
 3.7 P & L Account

PROFIT & LOSS MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

ACCOUNT OF
TATA
MOTORS (in Rs.
Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

REVENUE FROM 65,298.8 46,880.9 29,769.0 43,485.7 68,764.8

OPERATIONS 4 7 7 6 8
[GROSS]

Less: Excise/Sevice 0.00 0.00 0.00 0.00 0.00

Tax/Other Levies

REVENUE FROM 65,298.8 46,880.9 29,769.0 43,485.7 68,764.8

OPERATIONS 4 7 7 6 8
[NET]

TOTAL 65,757.3 47,263.6 30,175.0 43,928.1 69,202.7

OPERATING 3 8 3 7 6
REVENUES

Other Income 820.94 659.91 419.99 1,383.05 2,554.66

TOTAL 66,578.2 47,923.5 30,595.0 45,311.2 71,757.4

REVENUE 7 9 2 2 2

EXPENSES

53
 Cost Of Materials 42,226.8 31,693.1 19,050.7 26,171.8 43,748.7
Consumed 1 1 4 5 7

Purchase Of Stock- 6,561.32 5,030.00 3,156.80 5,679.98 6,722.32

In Trade

Operating And 899.06 593.90 348.71 830.24 571.76

Direct Expenses

Changes In 484.69 -403.87 -609.55 722.68 144.69

Inventories Of
FG,WIP And Stock-
In Trade

Employee Benefit 4,021.63 3,601.51 3,341.53 4,384.31 4,273.10

Expenses

Finance Costs 2,047.51 2,121.73 2,110.83 1,973.00 1,793.57

Depreciation And 1,766.86 1,760.57 1,730.71 3,375.29 3,098.64

Amortisation
Expenses

Other Expenses 8,099.50 6,155.52 4,227.35 7,959.75 9,895.68

TOTAL 65,040.6 49,647.0 32,562.1 49,927.6 69,155.4

EXPENSES 5 5 9 4 2

PROFIT/LOSS 1,537.62 - - - 2,602.00

BEFORE 1,723.46 1,967.17 4,616.42
EXCEPTIONAL,
EXTRAORDINAR
Y ITEMS AND
TAX

54
 Exceptional Items -282.82 83.41 -307.55 - -203.07
2,510.92

PROFIT/LOSS 1,254.80 - - - 2,398.93

BEFORE TAX 1,640.05 2,274.72 7,127.34

TAX EXPENSES-
CONTINUED
OPERATIONS

Current Tax 81.60 51.18 20.16 33.05 294.66

Less: MAT Credit 0.00 0.00 0.00 0.00 0.00

Entitlement

Deferred Tax - 48.00 0.56 129.24 83.67

1,554.93

Tax For Earlier 0.00 0.00 0.00 0.00 0.00

Years

TOTAL TAX - 99.18 20.72 162.29 378.33

EXPENSES 1,473.33

PROFIT/LOSS 2,728.13 - - - 2,020.60

AFTER TAX AND 1,739.23 2,295.44 7,289.63
BEFORE
EXTRAORDINAR
Y ITEMS

PROFIT/LOSS 2,728.13 - - - 2,020.60

FROM 1,739.23 2,295.44 7,289.63
CONTINUING
OPERATIONS

55
 PROFIT/LOSS 2,728.13 - - - 2,020.60
FOR THE 1,390.86 2,395.44 7,289.63
PERIOD

OTHER
ADDITIONAL
INFORMATION

EARNINGS PER
SHARE

Basic EPS (Rs.) 7.11 -3.63 -6.59 -21.06 5.94

Diluted EPS (Rs.) 7.11 -3.63 -6.59 -21.06 5.94

VALUE OF
IMPORTED AND
INDIGENIOUS
RAW
MATERIALS
STORES, SPARES
AND LOOSE
TOOLS

Imported Raw 0.00 0.00 0.00 0.00 0.00

Materials

Indigenous Raw 0.00 0.00 0.00 0.00 0.00

Materials

STORES, SPARES
AND LOOSE
TOOLS

56
 Imported Stores 0.00 0.00 0.00 0.00 0.00
And Spares

Indigenous Stores 0.00 0.00 0.00 0.00 0.00

And Spares

DIVIDEND AND
DIVIDEND
PERCENTAGE

Equity Share 0.00 0.00 0.00 0.00 0.00

Dividend

Tax On Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 100.00 0.00 0.00 0.00 0.00

Rate (%)

57
 3.8 Balance Sheet from 2019 to 23

BALANCE MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

SHEET OF TATA
MOTORS (in Rs.
Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'
S FUNDS

Equity Share 766.02 765.88 765.81 719.54 679.22

Capital

TOTAL SHARE 766.02 765.88 765.81 719.54 679.22

CAPITAL

Reserves and 21,701.3 19,171.8 18,290.1 16,800.6 21,483.3

Surplus 7 8 6 1 0

TOTAL 21,701.3 19,171.8 18,290.1 16,800.6 21,483.3

RESERVES AND 7 8 6 1 0
SURPLUS

TOTAL 22,467.3 19,937.7 19,055.9 18,387.6 22,162.5

SHAREHOLDER 9 6 7 5 2
S FUNDS

NON-CURRENT
LIABILITIES

Long Term 10,445.7 14,102.7 16,326.7 14,776.5 13,914.7

Borrowings 0 4 7 1 4

Deferred Tax 51.16 173.72 266.50 198.59 205.86

Liabilities [Net]

Other Long Term 1,411.78 1,212.34 1,786.93 1,646.56 404.11

Liabilities

58
 Long Term 1,588.75 1,474.11 1,371.94 1,769.74 1,281.59
Provisions

TOTAL NON- 13,497.3 16,962.9 19,752.1 18,391.4 15,806.3

CURRENT 9 1 4 0 0
LIABILITIES

CURRENT
LIABILITIES

Short Term 8,426.74 9,129.91 5,421.95 6,121.36 3,617.72

Borrowings

Trade Payables 7,162.60 6,102.10 8,115.01 8,102.25 10,408.8

3

Other Current 9,805.30 11,152.7 11,671.0 10,180.4 7,765.57

Liabilities 4 5 6

Short Term 408.89 608.06 1,043.54 1,406.75 1,148.69

Provisions

TOTAL 25,803.5 26,992.8 26,251.5 25,810.8 22,940.8

CURRENT 3 1 5 2 1
LIABILITIES

TOTAL CAPITAL 61,770.7 63,899.8 65,059.6 62,589.8 60,909.6

AND 7 7 6 7 3
LIABILITIES

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 12,129.1 12,065.8 19,922.0 19,540.2 18,316.6

4 9 6 5 1

Intangible Assets 2,413.18 2,009.87 6,501.04 5,667.73 3,970.22

Capital Work-In- 575.65 585.21 1,400.82 1,755.51 2,146.96

Progress

Other Assets 0.00 0.00 0.00 0.00 0.00

59
 FIXED ASSETS 15,627.2 15,543.0 29,429.5 29,702.7 28,573.4
7 0 6 8 2

Non-Current 29,181.6 29,256.3 16,114.9 15,730.8 15,434.1

Investments 2 9 1 6 9

Deferred Tax 1,477.26 0.00 0.00 0.00 0.00

Assets [Net]

Long Term Loans 114.40 48.43 72.39 138.46 143.13

And Advances

Other Non- 3,870.27 3,432.44 3,588.21 3,449.01 3,529.59

Current Assets

TOTAL NON- 50,270.8 48,280.2 49,205.0 49,021.1 47,680.3

CURRENT 2 6 7 1 3
ASSETS

CURRENT
ASSETS

Current 3,142.96 5,143.08 1,578.26 885.31 1,433.18

Investments

Inventories 3,027.90 3,718.49 4,551.71 3,831.92 4,662.00

Trade 2,307.72 2,111.78 2,087.51 1,978.06 3,250.64

Receivables

Cash And Cash 1,414.65 2,605.43 4,318.94 3,532.19 1,306.61

Equivalents

Short Term Loans 132.29 139.37 184.49 232.14 200.08

And Advances

OtherCurrentAss 1,474.43 1,901.46 3,133.68 3,109.14 2,376.79

ets

TOTAL 11,499.9 15,619.6 15,854.5 13,568.7 13,229.3

CURRENT 5 1 9 6 0
ASSETS

TOTAL ASSETS 61,770.7 63,899.8 65,059.6 62,589.8 60,909.6

60
 7 7 6 7 3

OTHER
ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent 2,515.88 3,353.04 3,694.20 4,737.19 7,246.04

Liabilities

CIF VALUE OF
IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares 0.00 0.00 0.00 0.00 0.00

And Loose Tools

Trade/Other 0.00 0.00 0.00 0.00 0.00

Goods

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE
IN FOREIGN
EXCHANGE

Expenditure In 1,297.57 1,983.68 2,159.77 2,946.64 0.00

Foreign Currency

REMITTANCES
IN FOREIGN
CURRENCIES
FOR DIVIDENDS

Dividend -- -- -- -- --
Remittance In
Foreign Currency

EARNINGS IN
FOREIGN
EXCHANGE

61
 FOB Value Of -- -- -- -- --
Goods

Other Earnings 2,979.25 4,006.60 2,181.66 3,144.88 --

BONUS
DETAILS

Bonus Equity 111.29 111.29 111.29 111.29 111.29

Share Capital

NON-CURRENT
INVESTMENTS

Non-Current 574.37 718.49 446.23 140.96 270.17

Investments
Quoted Market
Value

Non-Current 630.45 620.45 521.42 407.61 393.21

Investments
Unquoted Book
Value

CURRENT
INVESTMENTS

Current -- -- -- -- 0.91
Investments
Quoted Market
Value

Current 3,142.96 5,143.08 1,578.26 885.31 1,174.46

Investments
Unquoted Book
Value

62
 Chapter IV
Findings
Suggestion and
Conclusion.

63
 4.1 FINDING

 The company targets high level of income people because company produces

luxury and semi luxury cars.

 The products match with the price and quality.

 The company is prompt and timely delivery of the product to the customers.

 Tata motors are the third largest company in the passenger vehicles segment

and the leader and the commercial vehicle segment.

 The share of Tata motors in passenger vehicles segment is low as compared to

major competitors. This may be due to the better products and services better marketing

strategies by competitors.

 Tata motors limited ltd have 77% will knowledgeable Concord sells personal

and they spend enough time with customers.

 Concord motors limited offers test drive to every customer and discount offer.

4.2 SUGGESTION

 The cost of NANO cars starts at the rate of 100000 here it is difficult for the

low class people to buy it so the company should produce the cars by taking into
consideration

about the lower cost.

 The service cost is higher compared to the local groups hence the company

should fix a reasonable price.

 The company should give more importance towards increasing the mileage of

64
 the car due to the increase in the rate of fuel.

65
 4.3 CONCLUSION

After all the research work and detailed financial analysis of TATA Motors, I

came to the conclusion that TATA Motors is an overall strong company that

has found its strength and expansion through its parent company.

TATA motors should come in luxury segment with new strategies in the

domestic market; it should focus on increasing the proportion of market share

in passenger vehicles in India. The liquidity and leverage and analysis of both

the firms are done. The results show that TATA Motors ltd. has to increase the

portion of proprietor’s fund in business to improve long term solvency position.

Developing new products and covering new market will always be their main

purpose .Therefore, the name of TATA itself says it all-

 Trust

 Acceptability

 Transparency

 Accountability

66
 BIBLIOGRAPHY

Reports

Annual accounts & reports of Tata Motors Ltd. from 2019-2020

to 2022-2023[money control].

Books of Reference
1. Chandra , P.(2019). Financial Management .Tata McGraw -Hill Publishishing Company

Ltd. New Delhi.

2. Gupt, Shatri.,& Sharma , RK. Financial Management : Theory and Practice.

3. Pandey, I. M. (2010). Finance Management. Vikas Publication House. New Delhi.

4. Jain, &Narang.(2005). Financial Accounting. Kalyani Publishers.

Websites and Journals

www.Tatamotors.com

www.capitalmarket.com

www.carandbike.com

www moneycontrol.com

67