PART I (A)

COMPANY PROFILE

Tata Motors Limited is an Indian multinational automotive manufacturing company,

headquartered in the city of Mumbai, India which is part of Tata Group. The company
produces passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars,
construction equipment.

Formerly known as Tata Engineering and Locomotive Company (TELCO), the company
was founded in 1945 as a manufacturer of locomotives. The company manufactured its
first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended
in 1969. Tata Motors entered the passenger vehicle market in 1988 with the launch of
the Tata Mobile followed by the Tata Sierra in 1991, becoming the first Indian
manufacturer to achieve the capability of developing a competitive indigenous
automobile. In 1998, Tata launched the first fully indigenous Indian passenger car,
the Indica, and in 2008 launched the Tata Nano, the world's most affordable car. Tata
Motors acquired the South Korean truck manufacturer Daewoo Commercial Vehicles
Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.

Tata Motors' principal subsidiaries include British premium car maker Jaguar Land
Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial
vehicle manufacturer Tata Daewoo. Tata Motors has a construction-equipment
manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a
joint venture with Fiat Chrysler which manufactures automotive components and Fiat
Chrysler and Tata branded vehicles. On Oct 12, 2021 private equity firm TPG invested $1
billion in Tata Motors' electric vehicle subsidiary.

Tata Motors has auto manufacturing and vehicle plants in Jamshedpur, Pantnagar,

Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa, the
United Kingdom, and Thailand. It has research and development centres in Pune,
Jamshedpur, Lucknow, and Dharwad, India and South Korea, the United Kingdom, and
Spain. Tata Motors is listed on the BSE (Bombay Stock Exchange), where it is a
constituent of the BSE SENSEX index, the National Stock Exchange of India, and
the New York Stock Exchange. The company is ranked 265th on the Fortune Global
500 list of the world's biggest corporations as of 2019.

1
Tata Group entered the commercial vehicle sector in 1954 after forming a joint venture
with Daimler-Benz of Germany. After years of dominating the commercial vehicle market
in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata
Sierra, a sport utility vehicle based on the Tata Mobile platform. Tata subsequently
launched the Tata Estate (1992; a station wagon design based on the earlier Tata Mobile),
the Tata Sumo (1994, a 5-door SUV) and the Tata Safari (1998).

 Passenger Cars: Our range of Tata brand passenger cars include the Nano, a
micro, the Indica, the Vista, the Zest and the Bolt, which are compacts and the
Indigo eCS and the Manza, which are mid-sized, in the sedan category. We have
expanded our passenger car range with several variants and fuel options designed
to suit various customer preferences. Our Jaguar Land Rover brands have an
established presence in the premium passenger car category under the Jaguar brand
name. There are four car lines currently manufactured under the Jaguar brand
name, including the F-TYPE two-seater sports car coupe and convertible
(including all-wheel drive derivatives) the XF sedan (including the Sportbrake and
all-wheel drive derivatives), the XJ saloon, and the new XE sports saloon.
 Utility Vehicles: We manufacture a range of Tata brand utility vehicles, including
the Sumo and the Safari, which are SUVS, the Xenon XT, a lifestyle pickup, the
Tata Aria, a crossover, and the Venture, a multipurpose utility vehicle. We offer
two variants of the Safari: the Dicor and the Storme. We also offer a variant of the
Sumo, the Sumo Gold, and launched the new Movus in May 2014, which is an
entry level UV. There are six car lines under the brands of Range Rover and Land
Rover in the premium all-terrain vehicles categories: the Range Rover, Range
Rover Sport, including the Range Rover Sport SVR, the Range Rover Evoque
(available in 5-door and coupe versions), Land Rover Discovery, including the
Discovery 4 which features 7-seat capacity, the Discovery Sport and the Defender.
 Electric vehicles (EV): Tata Motors has unveiled electric versions of the Tata
indica passenger car powered by TM4 electric motors and inverters, as well as the
Tata Ace commercial vehicle, both of which run on lithium batteries. In 2008 Tata
Motors' UK subsidiary, Tata Motors European Technical Centre, bought a 50.3%
holding in electric vehicle technology firm Miljobil Grenland/Innovasjon of
Norway for US$1.93 million, and planned to launch the electric Indica hatchback
in Europe the following year In September 2010, Tata Motors presented four
CNG-Electric Hybrid low-floored Starbuses to the Delhi Transport Corporation, to
be used during the 2010 Commonwealth Games. These were the first
environmentally friendly buses to be used for public transportation in India. In
December 2019, Tata Motors unveiled the Nexon EV, an SUV with a 30.2kWh
lithium-ion battery and a consistent range of 312 km on a single charge. It is also
equipped with fast charging technology, which can charge the vehicle from 0% -
80% in 60 minutes. 1591 With 525 units of Nexon EV sold in India last month,

2
 Tata Nexon EVO was the best selling electric car in the month of April 2021 in
India

List of Tata electric vehicles.

a) Tata Nexon EV
b) Tata Tigor EV
c) Tata Altroz EV

 Light Commercial Vehicles: We manufacture a variety of light commercial

vehicles, including pickup trucks and small commercial vehicles. This includes the
Tata Ace, India's first indigenously developed mini-truck, with a 0.75 ton payload
with different fuel options, the Super Ace, with a 1-ton payload, the Ace Zip, with
a 0.6 ton payload, including a CNG variant launched in Fiscal 2015, the Magic and
the Magic Iris, including an electric variant, both of which are passenger variants
for commercial transportation developed on the Tata Ace platform, and the
Winger. In addition, we introduced a new generation of Ultra LCV trucks,
including the Ultra narrow cab, in Fiscal 2015. We also offer the City Ride and
Starbus ranges of buses.
 Medium and Heavy Commercial Vehicles. We manufacture a variety of medium
and heavy commercial vehicles, which include trucks, tractors, buses, tippers, and
multi-axled vehicles, with GVWS (including payload) of between 8 tons and 49
tons. In addition, through Tata Daewoo Commercial Vehicles Co. Ltd, or TDCV,
we manufacture a wide array of trucks ranging from 215 horsepower to 560
horsepower, including dump trucks, tractor-trailers, mixers and cargo vehicles. Our
Prima line of trucks is aimed at its customers in India and South Korea, and we
have extended the Prima line by offering Prima LX and multi-axle truck variants.
We expect to gradually export our Prima products to other countries such as South
Africa, Russia, the other South Asian Association for Regional Cooperation
countries, the Middle East and various countries in Africa. We also offer a range of
buses, which includes the Divo Coach, the Semi Deluxe Starbus Ultra Contract
Bus and the new Starbus Ultra.
 Defence vehicles: Tata Group company whose relationship with India's defence
and security forces is synonymous with that of the group is Tata Motors. India's
largest automobile company (subsidiaries include Jaguar Land Rover), with
consolidated revenues of almost $35 billion in 2012-13, is strategically moving
from the logistics vehicle segment into the combat vehicle segment.

MISSION
We innovate mobility solutions with passion to enhance the quality of life.

3
VALUES

 Integrity
 Teamwork
 Accountability
 Customer Focus
 Excellence
 Speed
VISION
By FY 2024, we will become the most aspirational Indian auto brand, consistently
winning, by

 delivering superior financial returns

 driving sustainable mobility solutions
 exceeding customer expectations, and
 creating a highly engaged work force

4
 PART I (B)

SECTOR OVERVIEW

In 2020, India was the fifth-largest auto market, with ~3.49 million units combined sold in
the passenger and commercial vehicles categories. It was the seventh-largest manufacturer
of commercial vehicles in 2019.

The two wheelers segment dominate the market in terms of volume 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.

India is also a prominent auto exporter and has strong export growth expectations for the
near future. In addition, several initiatives by the Government of India and major
automobile players in the Indian market is expected to make India a leader in the two-
wheeler and four-wheeler market in the world by 2020.

Market Size

Domestic automobiles production increased at 2.36% CAGR between FY16-20 with 26.36
million vehicles being manufactured in the country in FY20. Overall, domestic
automobiles sales increased at 1.29% CAGR between FY16-FY20 with 21.55 million
vehicles being sold in FY20. In FY21, the total passenger vehicles production reached
22,652,108.

In October 2021, the total production volume of passenger vehicles (except for BMW,
Mercedes, Tata Motors & Volvo Auto), three wheelers, two wheelers and quadric cycles
reached 2,214,745 units.

Two wheelers and passenger vehicles dominate the domestic Indian auto market.
Passenger car sales are dominated by small and mid-sized cars. Two wheelers and
passenger cars accounted for 80.8% and 12.9% market share, respectively, accounting for
a combined sale of over 20.1 million vehicles in FY20. In July-September 2021 quarter,
the luxury car market registered sales of 8,500 units.

Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of
6.94% during FY16-FY20. Two wheelers made up 73.9% of the vehicles exported,

5
followed by passenger vehicles at 14.2%, three wheelers at 10.5% and commercial
vehicles at 1.3%.

Indian automobile exports stood at 1,419,430 units from April 2021 to June 2021 as
compared to 436,500 units in April 2020 to June 2020.

EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and reached 1.56
lakh units in FY20 driven by two wheelers. According to NITI Aayog and Rocky
Mountain Institute (RMI) India's EV finance industry is likely to reach Rs. 3.7 lakh crore
(US$ 50 billion) in 2030. A report by India Energy Storage Alliance estimated that EV
market in India is likely to increase at a CAGR of 36% until 2026. In addition, projection
for EV battery market is forecast to expand at a CAGR of 30% during the same period.

 Premium motorbike sales in India recorded seven-fold jump in domestic sales,

reaching 13,982 units during April-September 2019. The luxury car market is
expected to register sales of 28,000-33,000 units in 2021, up from 20,000-21,000
units sold in 2020. The entry of new manufacturers and new launches is likely to
propel this market in 2021.

 Investments

To keep up with the growing demand, several auto makers have started investing heavily
in various segments of the industry during the last few months. The industry attracted
Foreign Direct Investment (FDI) worth US$ 30.51 billion between April 2000 and June
2021 accounting for ~5.5% of the total FDI during the period according to the data
released by Department for Promotion of Industry and Internal Trade (DPIIT).

Some of the recent/planned investments and developments in the automobile sector in

India are as follows:

 In November 2021, Indian Oil Corporation (IOC) and two other public sector oil
firms announced that they will install 22,000 electric vehicle (EV) charging
stations over the next 3–5 years.

 In November 2021, Tata Motors announced that they will establish vehicle
scrappage centres under a franchise set up at Ahmedabad, Gujarat, by the first
quarter of the next fiscal year.

6
 In November 2021, Skoda Auto announced plans to locally manufacture electric
cars in India. However, the firm may bring its first EV, the Enyaq, through the
CBU route, before committing to local manufacturing.

 In November 2021, Hero Motor (HMC), the parent company of Hero Cycles,
entered a joint venture partnership with Yamaha, a Japanese two-wheeler major, to
make electric motors for e-bicycles for the global market.

 In October 2021, Tata Motors announced that private equity group TPG along with
ADQ of Abu Dhabi has agreed to invest Rs. 7,500 crore (US$ 1 billion) in its EV
division.

 In September 2021, Hero Electric announced plans to expand production capacity

at its facility in Ludhiana, Punjab, to >5 lakh units by March 2022, up from the
existing capacity of 1 lakh units per year.

 In September 2021, Hero Electric announced plans to expand production capacity

at its facility in Ludhiana, Punjab, to >5 lakh units by March 2022, up from the
existing capacity of 1 lakh units per year.

 In August 2021, Hindustan Zinc Ltd. announced a US$ 1 billion investment across
its eight mines to replace diesel-powered trucks and equipment with battery EVs.

 In July 2021, Maruti Suzuki India announced a Rs. 18,000 crore (US$ 2.42 billion)
investment in a new manufacturing facility in Haryana, with an installed capacity
of 7.5-10 lakh units per annum. As it prepares to protect its market dominance, the
company aims to increase capital spending by 67% to Rs. 4,500 (US$ 605 million)
crore in FY22.

 In July 2021, Hyundai Motor India opened its new corporate headquarters in
Gurgaon, backed by a Rs. 2,000 crore (US$ 269 million) investment.

 In April 2021, Mahindra & Mahindra announced a three-year investment plan in

the electric vehicles segment of Rs. 3,000 crore (US$ 403 million).

 Between January and July 2021, EV component makers, electric commercial

vehicles and last-mile delivery companies invested a total of Rs. 25,045 crore (US$
3.67 billion) on electric vehicles.

7
  In FY21, passenger vehicles sales reached 27.11 lakhs units, two-wheelers reached
151.19 lakhs units, commercial vehicles sales reached 5.69 lakhs units and for
three-wheelers it was 2.16 lakhs units.

 In 2019-20, the total passenger vehicles sales reached ~2.8 million, while ~2.7
million units were sold in FY21.

 In February 2021, the Delhi government started the process to set up 100 vehicle
battery charging points across the state to push adoption of electric vehicles.

 In January 2021, Fiat Chrysler Automobiles (FCA) announced an investment of

US$ 250 million to expand its local product line-up in India.

 A cumulative investment of ~Rs. 12.5 trillion (US$180 billion) in vehicle

production and charging infrastructure would be required until 2030 to meet
India’s electric vehicle (EV) ambitions.

 In January 2021, Lamborghini announced it is aiming to achieve sales in India

higher than the 2019-levels, after recovering from pandemic-induced disruptions.

 In January 2021, Tesla, the electric car maker, set up a R&D centre in Bengaluru
and registered its subsidiary as Tesla India Motors and Energy Private Limited.

Government Initiatives

The Government of India encourages foreign investment in the automobile sector and has
allowed 100% foreign direct investment (FDI) under the automatic route.

Some of the recent initiatives taken by the Government of India are -

 In November 2021, the union government added >100 advanced technologies,

including alternate fuel systems such as compressed natural gas (CNG), Bharat
Stage VI compliant flex fuel engines, electronic control units (ECU) for safety,
advanced driver assist systems and e-quadricycles, under the production-linked
incentive (PLI) scheme for the automobiles.

 In September 2021, the Union Minister for Road, Transport and Highways, Mr.
Nitin Gadkari announced that government is planning to make it mandatory for car

8
 manufacturers to produce flex-fuel engines after getting the required permissions
from the Supreme Court of India.

 In September 2021, the Indian government issued notification regarding a PLI

scheme for automobile and auto components worth Rs. 25,938 crore (US$ 3.49
billion). This scheme is expected to bring investments of over Rs. 42,500 (US$
5.74 billion) by 2026.

 The Indian government has planned ~US$ 3.5 billion in incentives over a five-year
period until 2026 under a revamped scheme to encourage production and export of
clean technology vehicles.

 As of June 2021, Rs. 871 crore (US$ 117 million) has been spent under the
FAME-II scheme, 87,659 electric vehicles have been supported through incentives
and 6,265 electric buses have been sanctioned to various state/city transportation
undertakings.

 In July 2021, India inaugurated the national automotive test tracks (NATRAX),
which is Asia’s longest high-speed track to facilitate automotive testing.

 In Union Budget 2021-22, the government introduced the voluntary vehicle

scrappage policy, which is likely to boost demand for new vehicles after removing
old unfit vehicles currently plying on the Indian roads.

 In February 2021, the Delhi government started the process to set up 100 vehicle
battery charging points across the state to push adoption of electric vehicles.

 The Union Cabinet outlaid Rs. 57,042 crore (US$ 7.81 billion) for automobiles &
auto components sector in production-linked incentive (PLI) scheme under the
Department of Heavy Industries.

 The Government aims to develop India as a global manufacturing centre and a

Research and Development (R&D) hub.

 Under NATRiP, the Government of India is planning to set up R&D centres at a

total cost of US$ 388.5 million to enable the industry to be on par with global
standards.

9
  The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in
the country for introduction of EVs in their public transport systems under the
FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in
India) scheme. The Government will also set up incubation centre for start-ups
working in the EVs space.

 In February 2019, the Government of India approved FAME-II scheme with a fund
requirement of Rs. 10,000 crore (US$ 1.39 billion) for FY20-22.

Achievements

Following are the achievements of the Indian automotive sector:

 In H12019, automobile manufacturers invested US$ 501 million in India’s auto-

tech start-ups according to Venture intelligence.

 Investment flow into EV start-ups in 2019 (till end of November) increased nearly
170% to reach US$ 397 million.

 On 29th July 2019, Inter-ministerial panel sanctioned 5,645 electric buses for 65

cities.

 NATRiP’s proposal for “Grant-In-Aid for test facility infrastructure for EV

performance Certification from NATRIP Implementation Society” under the
FAME Scheme was approved by Project Implementation and Sanctioning
Committee (PISC) on 3rd January 2019.

 Under NATRiP, following testing and research centres have been established in
the country since 2015.

o International Centre for Automotive Technology (ICAT), Manesar

o National Institute for Automotive Inspection, Maintenance & Training

(NIAIMT), Silchar

o National Automotive Testing Tracks (NATRAX), Indore

o Automotive Research Association of India (ARAI), Pune

o Global Automotive Research Centre (GARC), Chennai

10
 SAMARTH Udyog - Industry 4.0 centres: ‘Demo cum experience’ centres are
being set up in the country for promoting smart and advanced manufacturing
helping SMEs to implement Industry 4.0 (automation and data exchange in
manufacturing technology).

11
 PART II (A)

OBJECTIVE OF THE STUDY

 To study the profitability of the company on the basis of ratio analysis.

 To determine the liquidity, solvency, profitability position with the help of
liquidity, solvency, and profitability ratio.
 To study various relevant ratios required to understand the profitability and
liquidity position of the company.
 To identifying optimal capital structure of the Company.
 To know the market share of Tata Motors Company.

12
 RESEARCH METHODOLOGY

Research methodology is away to systematically solve the research problem, as to

how research is done scientifically. It is generally adapted by researcher to study his
research problem along with logic behind them. It is necessary for the researcher to develop
certain tests. This also clarify time, scope, data sources etc. of proposed study. Another
significant aspect is tools and techniques which are used for the study.

METHOD OF DATA COLLECTION

The entire data in the report had been collected from the secondary sources as such
there were no need of any data from the primary sources. The following sources sought for
the preparation report.

Types of research

Descriptive research :-

Descriptive researches include surveys &fact finding inquires of deferent kind. The major
purpose of descriptive research is description of the state of affairs as it it at present. The
main feature of this method is that the researcher has no control over the variables he can
only report what has happen and what is happened.

Applied research:-

Applied research or fundamental research aims and financing a solution for an immediate
problem facing a society or an industrial or business organization.

For et:- research concerning with natural phenomena or relating to pure mathematics are
example of fundamental Research.

Qualitative v/s Quantitative :-

Quantitative research is based on the measurement of quantity or amt. it is Tata Motors

able to phenomena that can be expressed in term of quantity. Qualitative research, on the
other hand is concern with qualitative phenomena (involving quality or king).

13
Conceptual v/s Empirical:-

Conceptual research is that related to some attract idea or theory it is generally use by
philosophers & thinkers to develop new concept.

Empirical research relies on in experience or observation alone, often without due regard
is appropriable when prod is sough that certain variables affect other variables in some
way.

RESEARCH TECHNIQUES

For investment analysis proper study of financial statement is play very important role.
Therefore any new investor who wants to invest in security market (Share Market) they all
need to know some methodology or techniques to finding company share value. And how
investor earn good returns for short term or long term object.

Ratios 2021 2020

Current Ratio 0.60 0.52
Quick Ratio 0.43 0.37
Debt Equity Ratio 0.24 0.22
Inventory Turnover Ratio 10.33 11.46
Debtors Turnover Ratio 10.33 11.46
Investments Turnover Ratio 0.67 0.70
Fixed Assets Turnover Ratio 1.59 1.47
Asset Turnover Ratio 0.72 0.70

14
 DATA ANALYSIS & INTERPRETATION DATA

Current Ratio

Current Ratio = Current Assets/ Current Liabilities

15854.59/26251.55

2021 = 0.60

Current Ratio = Current Assets/ Current Liabilities

13568.76/25810.82

2020 = 0.52

0.52
2021
2020
0.6

INTERPRETATION

From the above, we can observed Current Ratio in 2021 it is 0.60 and 2020 again it
is Decrease and reached to 0.52. 2021 inventory ratio is higher satisfactory to the
company.

15
Quick Ratio

Quick Ratio = Current Assets – Inventory/ Current Liabilities

15854.59 – 4551.71/26251.55

2021 = 0.43

Quick Ratio = Current Assets – Inventory/ Current Liabilities

13568.76 – 3831.92/25810.82

2020 = 0.37

0.37
2021
2020
0.43

INTERPRETATION

From the above, we can observed Current Ratio in 2021 it is 0.43 and 2020 again it
is Decrease and reached to 0.37. 2021 inventory ratio is higher satisfactory to the
company.

16
Debt Quick Ratio

Debt Quick Ratio = Current Assets – Inventory/Total Expenses

15854.59 – 4551.71/45607.95

2021 = 0.24

Debt Quick Ratio = Current Assets – Inventory/Total Expenses

13568.76 – 3831.92/43856.67

2020 = 0.22

0.22 2021
0.24 2020

INTERPRETATION

From the above, we can observed Current Ratio in 2021 it is 0.24 and 2020 again it
is Decrease and reached to 0.22. 2021 inventory ratio is higher satisfactory to the
company.

17
Inventory Turnover Ratio

Inventory turnover is a financial ratio showing how many times a company has sold and
replaced inventory during a given period. A company can then divide the days in the
period by the inventory turnover formula to calculate the days it takes to sell the inventory
on hand.

Inventory Turnover Ratio = Sale/Inventory Cost

47031.47/4551.71

2021 = 10.33

Inventory Turnover Ratio = Sale/Inventory Cost

43928.17/3831.92

2020 = 11.46

10.33 2021
11.46 2020

INTERPRETATION

From the above, we can observed Inventory Turnover Ratio in 2021 it is 10.33 and
2020 again it is increase and reached to 11.46. 2020 inventory ratio is higher satisfactory
to the company.

18
Debtors Turnover Ratio

The Debtors turnover ratio is an accounting measure used to quantify a company's

effectiveness in collecting its accounts receivable, or the money owed by customers or
clients.

Inventory Turnover Ratio = Sale/Inventory Cost

47031.47/4551.71

2021 = 10.33

Inventory Turnover Ratio = Sale/Inventory Cost

43928.17/3831.92

2020 = 11.46

10.33 2021
11.46 2020

INTERPRETATION

From the above, we can observed Debtors Turnover Ratio in 2021 it is 10.33 and
2020 it is increase and reached to 11.46. 2020 inventory ratio is higher satisfactory to the
company.

19
Investments Turnover Ratio

The investment turnover ratio of a company is the resulting number value when net
sales are divided by the sum of shareholder equity and outstanding debt.

Investments Turnover Ratio = Net Sale/Total Assets

47031.47/65059.66

2021 = 0.67

Investments Turnover Ratio = Net Sale/Total Assets

43928.17/62589.87

2020 = 0.70

0.67 2021
0.7 2020

INTERPRETATION

From the above, we can observed Investment Turnover Ratio in 2021 it is 0.67 and
2020 it is increase and reached to 0.70. 2020 inventory ratio is higher satisfactory to the
company.

20
Fixed Assets Turnover Ratio

The fixed asset turnover ratio (FAT) is, in general, used by analysts to measure operating
performance. This efficiency ratio compares net sales (income statement) to fixed assets
(balance sheet) and measures a company's ability to generate net sales from its fixed-asset
investments, namely property, plant, and equipment (PP&E).

Fixed Assets Turnover Ratio = Net Sale/Fixed Assets

47031.47/29429.56

2021 = 1.59

Fixed Assets Turnover Ratio = Net Sale/Fixed Assets

43928.17/29702.78

2020 = 1.47

1.47 2021
1.59 2020

INTERPRETATION

From the above, we can observed Fixed Assets Turnover Ratio in 2021 it is 1.59
and 2020 it is increase and reached to 1.47. 2020 inventory ratio is higher satisfactory to
the company.

21
Assets Turnover Ratio

The asset turnover ratio measures the efficiency of a company's assets in generating

revenue or sales. It compares the dollar amount of sales (revenues) to its total assets as an
annualized percentage. Thus, to calculate the asset turnover ratio, divide net sales or
revenue by the average total assets.

Asset Turnover Ratio = Net Sale/Total Assets

47031.47/65059.66

2021 = 0.72

Asset Turnover Ratio = Net Sale/Total Assets

43928.17/62589.87

2020 = 0.70

0.7 2021
0.72 2020

INTERPRETATION

From the above, we can observed Assets Turnover Ratio in 2021 it is 0.72 and
2020 it is increase and reached to 0.70. 2020 inventory ratio is higher satisfactory to the
company.

22
 PART II (B)

FINDINGS

 It can observed Current Ratio in 2021 it is 0.60 and 2020 again it is Decrease and
reached to 0.52. 2021 inventory ratio is higher satisfactory to the company.
 It can observed Current Ratio in 2021 it is 0.43 and 2020 again it is Decrease and
reached to 0.37. 2021 inventory ratio is higher satisfactory to the company.
 It can observed Current Ratio in 2021 it is 0.24 and 2020 again it is Decrease and
reached to 0.22. 2021 inventory ratio is higher satisfactory to the company.
 It can observed Inventory Turnover Ratio in 2021 it is 10.33 and 2020 again it is
increase and reached to 11.46. 2020 inventory ratio is higher satisfactory to the
company.
 It can observed Debtors Turnover Ratio in 2021 it is 10.33 and 2020 it is increase
and reached to 11.46. 2020 inventory ratio is higher satisfactory to the company.
 It can observed Investment Turnover Ratio in 2021 it is 0.67 and 2020 it is increase
and reached to 0.70. 2020 inventory ratio is higher satisfactory to the company.
 It can observed Fixed Assets Turnover Ratio in 2021 it is 1.59 and 2020 it is
increase and reached to 1.47. 2020 inventory ratio is higher satisfactory to the
company.
 It can observed Assets Turnover Ratio in 2021 it is 0.72 and 2020 it is increase and
reached to 0.70. 2020 inventory ratio is higher satisfactory to the company.

23
 SUGGESTION

 Tata motors can have a reasonable gross profit to ensure adequate coverage for
operating expenses.
 Tata motors can retain their profitability position by making efficient employment
of their available resources.
 The company can invest more in current assets than in working capital.
 The company can improve the net profit by reducing interest and financial charges.
 The company may maintain its planning and control techniques in order to regulate
and optimize the use of cash balance.
 The company should try to keep the costs lower and increase its sales.

24
 PART II (C)

CONCLUSION

 The study on financial performance analysis of Tata Motors is stated in this report,
this company has revealed the great deal of their financial aspects for two years.
 However, the profitability position of the company is not much better, that the
company, has to decrease the cost of production and keep the cost lower or increase
the sales price and also need to improve the efficiency in converting sales into actual
price.
 Net profit margin which measures how profitable a company’s sales are after
deducting all expenses interest, taxes & preferred stock dividends declines from 6.33
to 0.97 during the given period, which implies lower level of profitability of
company.
 Earning taxes, which are available for common stockholders, were also low as
compared to the sales volume of the company.
 This is due to effect of high expenses on the cost of goods sold and other expenses.
 Finally the company is loss making or rather we can say decreasing their profitability
but they have good future opportunities, it has took carefully at controlling the costs
of goods sold and reduce its expenses to avoid facing difficult financial conditions in
the future.

25
 BIBLIOGRAPHY

BOOKS

 Pandey, I.M.(2006). “Financial management Text and Cases.” 9th Edition, Vikas
Publishing House, New Delhi ,pp.43-49. Ruistagi, R.P.(1999).
 “Financial Management, Theory Concepts and problems.” Galgotia publisshing
company, New Delhi, p.70. Pandey,S.(2012).
 “Financial structure and Profitability of IFCI Ltd,: an emperical analysis.” Indian
journal of finance, 6(10), pp.32-38.

INTERNET

 [Link]
 [Link]
 [Link]
 [Link]

26
 ANNEXURES

Tata Motors

Standalone Balance Sheet

Mar 21 Mar 20 Mar 19 Mar 18 Mar 17

12 12 12 12 12
Months Months Months Months Months

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 765.81 719.54 679.22 679.22 679.22

Total Share Capital 765.81 719.54 679.22 679.22 679.22

Reserves and Surplus 18,290.16 16,800.61 21,483.30 19,491.76 20,483.39

Total Reserves and Surplus 18,290.16 16,800.61 21,483.30 19,491.76 20,483.39

Money Received Against Share

0.00 867.50 0.00 0.00 0.00
Warrants

Total Shareholders Funds 19,055.97 18,387.65 22,162.52 20,170.98 21,162.61

NON-CURRENT LIABILITIES

Long Term Borrowings 16,326.77 14,776.51 13,914.74 13,155.91 13,686.09

Deferred Tax Liabilities [Net] 266.50 198.59 205.86 154.61 147.58

Other Long Term Liabilities 1,786.93 1,646.56 404.11 502.37 1,451.47

Long Term Provisions 1,371.94 1,769.74 1,281.59 1,009.48 892.18

Total Non-Current Liabilities 19,752.14 18,391.40 15,806.30 14,822.37 16,177.32

CURRENT LIABILITIES

Short Term Borrowings 2,542.50 6,121.36 3,617.72 3,099.87 5,158.52

Trade Payables 8,115.01 8,102.25 10,408.83 9,411.05 7,082.95

27
Other Current Liabilities 14,550.50 10,180.46 7,765.57 10,845.11 8,819.71

Short Term Provisions 1,043.54 1,406.75 1,148.69 862.92 477.17

Total Current Liabilities 26,251.55 25,810.82 22,940.81 24,218.95 21,538.35

Total Capital And Liabilities 65,059.66 62,589.87 60,909.63 59,212.30 58,878.28

ASSETS

NON-CURRENT ASSETS

Tangible Assets 19,922.06 19,540.25 18,316.61 18,192.52 17,897.12

Intangible Assets 6,501.04 5,667.73 3,970.22 3,411.23 2,875.80

Capital Work-In-Progress 1,400.82 1,755.51 2,146.96 1,371.45 1,902.61

Intangible Assets Under

1,605.64 2,739.29 4,139.63 3,825.15 5,368.38
Development

Fixed Assets 29,429.56 29,702.78 28,573.42 26,800.35 28,043.91

Non-Current Investments 16,114.91 15,730.86 15,434.19 14,260.79 14,858.39

Long Term Loans And Advances 126.05 138.46 143.13 143.96 391.46

Other Non-Current Assets 3,534.55 3,449.01 3,529.59 3,035.54 2,827.44

Total Non-Current Assets 49,205.07 49,021.11 47,680.33 44,240.64 46,121.20

CURRENT ASSETS

Current Investments 1,578.26 885.31 1,433.18 1,820.87 2,437.42

Inventories 4,551.71 3,831.92 4,662.00 6,352.04 5,553.01

Trade Receivables 2,087.51 1,978.06 3,250.64 3,479.81 2,128.00

Cash And Cash Equivalents 4,318.94 3,532.19 1,306.61 795.42 326.61

Short Term Loans And

185.42 232.14 200.08 140.27 215.96
Advances

OtherCurrentAssets 3,132.75 3,109.14 2,376.79 2,383.25 2,096.08

Total Current Assets 15,854.59 13,568.76 13,229.30 14,971.66 12,757.08

Total Assets 65,059.66 62,589.87 60,909.63 59,212.30 58,878.28

28
OTHER ADDITIONAL
INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 5,354.18 4,737.19 7,246.04 5,269.63 4,787.17

CIF VALUE OF IMPORTS

EXPENDITURE IN FOREIGN
EXCHANGE

Expenditure In Foreign Currency 2,159.77 2,946.64 0.00 3,079.76 0.00

REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS

Dividend Remittance In Foreign

- - - - -
Currency

EARNINGS IN FOREIGN EXCHANGE

FOB Value Of Goods - - - - -

Other Earnings 2,181.66 3,144.88 - 5,422.47 -

BONUS DETAILS

Bonus Equity Share Capital 111.29 111.29 111.29 111.29 111.29

NON-CURRENT INVESTMENTS

Non-Current Investments Quoted

446.23 140.96 270.17 - 218.18
Market Value

Non-Current Investments
521.42 407.61 393.21 310.19 310.19
Unquoted Book Value

CURRENT INVESTMENTS

Current Investments Quoted

- - 0.91 303.84 -
Market Value

Current Investments Unquoted

1,578.26 885.31 1,174.46 1,517.03 2,437.42
Book Value

29
Tata Motors

Standalone Profit & Loss

account

Mar '21 Mar '20 Mar '19 Mar '18 Mar '17

12 12 12 12 12
Months Months Months Months Months

Income

Sales Turnover 47,031.47 43,928.17 69,202.76 59,624.69 49,054.49

Excise Duty 0.00 0.00 0.00 793.28 4,738.15

Net Sales 47,031.47 43,928.17 69,202.76 58,831.41 44,316.34

Other Income 2,224.96 -1,196.94 2,312.62 602.91 647.47

Stock Adjustments 69.02 -722.68 -144.69 -842.05 252.14

Total Income 49,325.45 42,008.55 71,370.69 58,592.27 45,215.95

Expenditure

Raw Materials 35,918.85 32,313.20 51,088.76 42,482.21 32,251.23

Power & Fuel Cost 371.78 428.85 598.62 545.12 483.48

Employee Cost 4,212.99 4,384.31 4,273.10 3,966.73 3,764.35

Other Manufacturing Expenses 907.64 830.24 571.76 474.98 454.48

Selling and Admin Expenses 444.37 846.60 736.13 720.18 848.36

Miscellaneous Expenses 3,752.32 5,053.47 6,850.15 6,491.68 5,156.07

30
Total Expenses 45,607.95 43,856.67 64,118.52 54,680.90 42,957.97

Mar '21 Mar '20 Mar '19 Mar '18 Mar '17

12 12 12 12 12
Months Months Months Months Months

Operating Profit 1,492.54 -651.18 4,939.55 3,308.46 1,610.51

PBDIT 3,717.50 -1,848.12 7,252.17 3,911.37 2,257.98

Interest 2,358.54 1,973.00 1,793.57 1,744.43 1,569.01

PBDT 1,358.96 -3,821.12 5,458.60 2,166.94 688.97

Depreciation 3,681.61 3,375.29 3,098.64 3,101.89 3,037.12

Profit Before Tax -2,322.65 -7,196.41 2,359.96 -934.95 -2,348.15

PBT (Post Extra-ord Items) -2,322.65 -7,196.41 2,359.96 -934.95 -2,348.15

Tax 82.87 162.29 378.33 87.93 76.33

Reported Net Profit -2,395.44 -7,289.63 2,020.60 -1,034.85 -2,429.60

Total Value Addition 9,689.10 11,543.47 13,029.76 12,198.69 10,706.74

Per share data (annualised)

Shares in issue (lakhs) 38,288.11 35,974.77 33,958.51 33,958.51 33,958.51

Earning Per Share (Rs) -6.26 -20.26 5.95 -3.05 -7.15

Book Value (Rs) 49.77 48.70 65.26 59.40 62.32

31