PROJECT REPORT

ON
“An analytical study of financial statements of Tata
Motors using ratio analysis’’

Submitted to
Rashtrasant TukadojiMaharaj
Nagpur University, Nagpur
In Partial Fulfilment of the requirement of the
“Bachelor of Business Administration”

Submitted by
Ms. Neha Indorker
Guidance by
[Link] Sakhare

[Link] Institute of Management Studies and

Research, DeekshaBhoomi, Nagpur-440012
2023-2024

1
 CERTIFICATE

This is to certify that Neha Indorker has satisfactorily completed the project work
entitled “An analytical study of financial statements of Tata Motors using ratio
analysis” in not less than one academic session.

This also certify that this project work is the result of the candidate’s own work
and is of sufficiently high standard to warrant its presentation for the BBA
program.

To the best of my knowledge this project or its part has not been submitted to this
university or any other university for any Degree/Diploma.

Internal Examiner External Examiner

Place: Nagpur

Date: Director

2
 ACKNOWLEDGEMENT

“Words have never expressed human sentiments. This is only an attempt to express
my deep gratitude which comes from my heart.”

It is a great pleasure for me to express my deep feeling of gratitude to my respected

guide [Link] Sakhare
(Assistant Professor, DAIMSR) for hisgreat encouragement and constantsupport
which provided desiredmoral and confidence to carry on my work.

I am grateful to the [Link] Fulzele,Director, Dr. Ambedkar Institute of

Management Studies & Research, Nagpur for making all facilities available for my
work.

I am grateful to the Dr. Nirzar Kulkarni, Associate Director, Dr. Ambedkar

Institute of Management Studies & Research, Nagpur for making all facilities
available for my work.

I would like to express my sincere gratitude to Dr. Saket Bansod, Head , BBA,
Dr. Ambedkar Institute of Management Studies & Research, Nagpur for fostering
an environment of learning & creativity within institute.

I am grateful to my parents for their lovable support. Last but not least I am
thankful to my friends and other faculty members for their direct and indirect help
for completion of this work.

3
 DECLARATION

I, Neha Indorker hereby declare that the project entitled “An analytical
study of financial statements of Tata Motors using ratio analysis ” is
the outcome of my own research work based on personal study during
academic session 2023-2024 and has not been submitted previously for
award of any degree or diploma to this university or any other
university.

Neha Indorker

4
 CHAPTERAISATION

Chapter Particulars Page

no. Number

1. Executive Summary

2. Introduction

3. Company profile

4. Research Methodology and data collection

5. Data Analysis and Interpretation

6. Findings and conclusion

7. Limitations and suggestions

8. Bibliography

9. Annexure

5
6
CHAPTER 1
7
EXECUTIVE SUMMARY

8
 CHAPTER 2
INTRODUCTION

9
 INTRODUCTION
FINANCIAL STATEMENT ANALYSIS
Financial analysis is the examination of financial information to reach business decisions. This
analysis typically results in the reallocation of resources to or from a business or a specific
internal operation. This type of analysis applies particularly well to the following situations:
 Investment decisions by external investor
In this situation, a financial analyst or investor reviews the financial statements and
accompanying disclosures of a company to see if it is worthwhile to invest in or lend
money to the entity. This typically involves ratio analysis to see if the organization is
sufficiently liquid and generates a sufficient amount of cash flow. It may also involve
combining the information in the financial statements for multiple periods to derive trend
lines that can be used to extrapolate financial results into the future.
 Investment decisions by internal investor
In this situation, an internal analyst reviews the projected cash flows and other
information related to a prospective investment (usually for a fixed asset). The intent is to
see if the expected cash outflows from the project will generate a sufficient return on
investment. This examination can also focus on whether to rent, lease, or purchase an
asset.
The key source of information for financial analysis is the financial statements of a business. The
financial analyst uses these documents to derive ratios, create trend lines, and conduct
comparisons against similar information for comparable firms.
The outcome of financial analysis may be any*---- of these decisions:
 Whether to invest in a business, and at what price per share.
 Whether to lend money to a business, and if so, what terms to offer.
 Whether to invest internally in an asset or working capital, and how to finance the
acquisition.
Financial analysis is one of the key tools needed by the managers of a business to examine how
their organization is performing. For this reason, they are constantly querying the financial
analyst about the profitability, cash flows, and other financial aspects of their business.

10
Financial statement analysis is an analysis that highlights the important relationship in the
financial statements. Financial statement analysis focuses on the evaluation of past performance
of the business firm in terms of liquidity, profitability, operational efficiency and growth
potentiality. Financial statements analysis includes the method use in assessing
and interpreting the result of past performance and current financial position as they relate to
particular factors of interest in investment decisions. Therefore financial statement analysis is an
important means of assessing past performance and in forecasting and planning future
performance.

Objectives of Financial Statement Analysis

Objectives of financial statement analysis are as follows
1. Assessment Of Past Performance
Past performance is a good indicator of future performance. Investors or creditors are
interested in the trend of past sales, cost of good sold, operating expenses, net
income, cash flows and return on investment. These trends offer a means for judging
management's past performance and are possible indicators of future performance.
2. Assessment of current position
Financial statement analysis shows the current position of the firm in terms of the types
of assets owned by a business firm and the different liabilities due against the enterprise.
3. Prediction of profitability and growth prospects
Financial statement analysis helps in assessing and predicting the earning prospects and
growth rates in earning which are used by investors while comparing investment
alternatives and other users in judging earning potential of business enterprise.
4. Prediction of bankruptcy and failure
Financial statement analysis is an important tool in assessing and predicting bankruptcy
and probability of business failure.
5. Assessment of the operational efficiency
Financial statement analysis helps to assess the operational efficiency of the management
of a company. The actual performance of the firm which are revealed in the financial
statements can be compared with some standards set earlier and the deviation of any

11
 between standards and actual performance can be used as the indicator of efficiency of
the management.

Methods or Techniques Of Financial Statement Analysis

Financial statement analysis can be performed by employing a number of methods or techniques.
The following are the important methods or techniques of financial statement analysis.
1. Ratio Analysis
Ratio analysis is the analysis of the interrelationship between two financial figures.
2. Cash Flow Analysis
Cash flow analysis is the analysis of the change in the cash position during a period.
3. Comparative Financial Statements
Comparative financial statement is a analysis of financial statements of the company for
two years or of the two companies of similar types.
4. Trend Analysis
Trend analysis is the analysis of the trend of the financial ratios of the company over the
years.
The methods to be selected for the analysis depend upon the circumstances and the users' need.
The user or the analyst should use appropriate methods to derive required information to fulfill
their needs.

Importance of Financial Statement Analysis

The financial statement analysis is important for different reasons:
1. Holding of Share
Shareholders are the owners of the company. Time and again, they may have to take decisions
whether they have to continue with the holdings of the company's share or sell them out. The
financial statement analysis is important as it provides meaningful information to the
shareholders in taking such decisions.
2. Decisions and Plans
The management of the company is responsible for taking decisions and formulating plans and
policies for the future. They, therefore, always need to evaluate its performance and effectiveness

12
of their action to realise the company's goal in the past. For that purpose, financial statement
analysis is important to the company's management.
3. Extension of Credit
The creditors are the providers of loan capital to the [Link] they may have to take
decisions as to whether they have to extend their loans to the company and demand for higher
interest rates. The financial statement analysis provides important information to them for their
purpose.
4. Investment Decision
The prospective investors are those who have surplus capital to invest in some profitable
opportunities. Therefore, they often have to decide whether to invest their capital in the
company's share. The financial statement analysis is important to them because they can obtain
useful information for their investment decision making purpose.

Limitations Of Financial Statement Analysis

Although analysis of financial statement is essential to obtain relevant information for making
several decisions and formulating corporate plans and policies, it should be carefully performed
as it suffers from a number of the following limitations.
1. Mislead the user
The accuracy of financial information largely depends on how accurately financial statements are
prepared. If their preparation is wrong, the information obtained from their analysis will also be
wrong which may mislead the user in making decisions.
2. Not useful for planning
Since financial statements are prepared by using historical financial data, therefore, the
information derived from such statements may not be effective in corporate planning, if the
previous situation does not prevail.
3. Qualitative aspects
Then financial statement analysis provides only quantitative information about the company's
financial affairs. However, it fails to provide qualitative information such as management labor
relation, customer's satisfaction, management's skills and so on which are also equally important
for decision making.

13
Parties Interested In Financial Statement Analysis
The analysis of financial figures contained in the company's profit and loss account and balance
sheet by employing appropriate technique is known a financial statement analysis. Financial
statement analysis is useful to different parties to obtain the required information about the
organization. Following are the parties interested in financial statement analysis.
1. Shareholders
Shareholders are interested in financial statement analysis to know the profitability of the
organization. Profitability shows the growth potentiality of an organization and safety of
investment of shareholders.
2. Investors and Lenders
Investors and lenders are interested to know the solvency position of an organization. They
analyze the financial statement position to know about the safety of their investment and ability
to pay interest and repayment of principle amount on due date.
3. Creditors
Creditors are interested in analyzing the financial statements in order to know the short term
liquidity position of an organization. Creditors analyse the financial statement to know either the
organization is enable to pay the amount of short term liabilities on due date.
4. Management
Management is interested to analyze the financial statement for measuring the effectiveness of its
policies and [Link] analyze the financial statements to know short term and long term
solvency position,profitability,liquidity position and return on investment from the business.
5. Government
Government is interested to analyze the financial position in determining the amount of tax
liability. It also helps for formulating effective plans and policies for economic growth.

TOOL FOR FINANCIAL ANALYSIS – RATIO ANALYSIS

Financial ratios are mathematical comparisons of financial statement accounts or categories.
These relationships between the financial statement accounts help investors, creditors, and

14
internal company management understand how well a business is performing and of areas
needing improvement.
Financial ratios are the most common and widespread tools used to analyze a business’ financial
standing. Ratios are easy to understand and simple to compute. They can also be used to compare
different companies in different industries. Since a ratio is simply a mathematically comparison
based on proportions, big and small companies can be use ratios to compare their financial
information. In a sense, financial ratios don’t take into consideration the size of a company or the
industry. Ratios are just a raw computation of financial position and performance.
Ratios allow us to compare companies across industries, big and small, to identify their strengths
and weaknesses. Financial ratios are often divided up into seven main categories: liquidity,
solvency, efficiency, profitability, market prospect, investment leverage, and coverage.
Following ratios will be used to determine financial performance-

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:
1) Current Ratio-The current ratio is a measure of a company’s ability to pay off the
obligations within the next twelve months. This ratio is used by creditors to evaluate whether a
company can be offered short term debts. It also provides information about the company’s
operating cycle. It is also popularly known as Working capital ratio. It is obtained by dividing the
current assets with current liabilities.
Current ratio is calculated as follows:
Current ratio = Current Assets / Current Liabilities
A higher current ratio around two(2) is suggested to be ideal for most of the industries while a
lower value (less than 1) is indicative of a firm having difficulty in meeting its current liabilities.
2)Quick Ratio or Acid Test Ratio- Quick ratio is also known as Acid test ratio is used to
determine whether a company or a business has enough liquid assets which are able to be instantly
converted into cash to meet short term dues. It is calculated by dividing the liquid current assets by the
current liabilities
It is represented as

15
Quick Ratio = (Cash + Marketable securities + Accounts receivable) / Current liabilities
The ideal quick ratio should be one(1) for a financially stable company

SOLVENCY RATIOS
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
1) 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
2) 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

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 :
1) 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.

16
 Gross profit ratio = Gross Profit /Sales × 100 Gross Profit= Sales + Closing Stock –
opening stock – Purchases – Direct Expenses

2)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
3) 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
4) 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
5) 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 10

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 CHAPTER - 3

COMPANY PROFILE

18
INTRODUCING TATA MOTORS

JEHANGIR RATANJI DADABHOY TATA

Tata Motors was incorporated in 1945. Formerly, Tata Engineering and Locomotive Co. Ltd.
were launched as a firm to build locomotives and other engineering products. Later in 1948, they
introduced the Steam road roller in collaboration with Marshall Sons (UK).Tata Motors Limited
is headquartered in Mumbai. The first thing to remember, Tata Motors is part of the USD 100
billion. Tata group- founded by Jamsetji Tata in the year 1868.

19
The company was founded by JRD Tata. He has been honoured as Bharat Ratna. He is also
called as the father of Indian Civil aviation. The person behind the growth of Tata Group,
Leading the group to become one of the strong industrial groups in India. JRD Tata was a
fearless aviator and. JRD was born in France, his father an Indian, and his mother is French.

Company Name Tata Motors Limited

Official Website [Link]

Founder Jehangir Ratanji Dadabhoy Tata

Parent Tata Group

Founded 1945

CEO Mr. Marc Llistosella

Status Active

Head Office Mumbai, India

Bombay House, 24, Homi Mody Street,Fort,
Address Mumbai 400001

RATAN TATA

Ratan tata In the 1970s,

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Tata was given a managerial position in the Tata group. He achieved initial success by turning
the subsidiary National Radio and Electronics (NELCO) around, only to see it collapse during an
economic slowdown. In 1991, J.R.D. Tata stepped down as chairman of Tata Sons, naming him
his successor.

Initially During the 21 years Tata led the Tata Group, revenues grew over 40 times, and profit
over 50 times. When he took over the company, sales overwhelmingly comprised commodity
sales, but at the end of his tenure, the majority of sales came from brand Ratan Tata resigned his
executive powers in the Tata group on 28 December 2012. An ensuing leadership crisis over his
succession drew intense media scrutiny. The board of directors and legal division of the
company refused to appoint his successor, Cyrus Mistry, a relative of Tata and the son of Pallonji
Mistry of the Shapoorji Pallonji Group, which was the largest individual shareholder of the Tata
group. On 24 October 2016, Cyrus Mistry was removed as chairman of Tata Sons, and Ratan
Tata was made interim chairman. A selection committee. which included Tata as a member, was
formed to find a successor

Ratan Tata received the Padma Bhushan in 2000 and Padma Vibhushan in 2008, the third and
second highest civilian honours awarded by the Government of India. Along with national
civilian honours, Tata has also received various state civilian honours like 'Maharashtra Bhushan'
in 2006 for his huge work in the public administration in Maharashtra and 'Assam Baibhav' in
2021 for his exceptional contribution towards furthering cancer care in Assam.

Mr. Natarajan Chandrasekaran

Current non-executive Director and Chairman of Tata Motors. Natarajan Chandrasekaran is also
the Chairman of the Board of Tata Sons. And was appointed Chairman lately in January
[Link], performs a vital role as chairperson on the Boards of several group operating
companies. To enumerate, Indian Hotels, Tata Steel, Tata Motors, Tata Power, and Tata
Consultancy Services (TCS). Also, he was the Chief Executive of TCS from 2009-17. Cyrus
Mistry (2012-2016) Natarajan Chandrasekaran (2017-present Successor

Mr. Marc Llistosella

Tata Motors has roped in Marc Llistosella as chief executive officer (CEO) and managing
director of the company effective 1 July 2021.

21
Llistosella has extensive experience in leading business and running sales, marketing and
network management as well as strategic planning. He finished his university education from the
University of Cologne and is an accomplished automotive executive.

Details of the Company

Tata Motors, India's biggest automobile company. Estimated consolidated revenues of USD 34.7
billion in 2012-13. In addition to the associated subsidiaries and companies, Tata Motors
currently operates in different places around the globe. Including, Spain, Thailand, the UK,
South Korea, South Africa, and Indonesia. In addition, Jaguar and Land Rover are the business
with two legendary British brands. Later, a strategic alliance with Fiat in 2005.

Leading to the industrial joint venture with Fiat Group Automobiles. For the production of Fiat,
Tata cars, and Fiat powertrains under the same unit. Further, to improve the operations division
of Tata sector comprising information technology (IT) services and manufacture of machine
tools and factory automation services. Moreover, the Company operates in over 160 countries
across the world.

Presently, the company's new passenger cars are designed for superior comfort, connectivity, and
performance. In general, what keeps TATA motors at the lead of the market is their focus on
future readiness and the constant pipeline of tech-enabled products. The company's design and
R&D centres distributed over India, the UK, Italy, and Korea endeavour to innovate new
products that achieve performances that will eventually discharge the thought of NextGen
customers. In effect, the globally dispersed organization holds on to its mission.

22
"To be passionate about anticipating and providing the best vehicles and experiences that
excites our customers globally".

Innovation

Tata Motors' innovation efforts mainly focused on developing auto technologies that are
sustainable and well-suited to the degrading conditions of developing economies. Above all. the
company's latest innovation is India's first turbocharged petrol engine, the Revotron 1.2T engine.

Reducing Pollution

Tata Motors has been at the forefront of the Indian automobile industry's anti- pollution efforts
by introducing cleaner engines. Albeit, the first Indian Company to innovate technology for
vehicles with Euro norms well ahead of the mandated dates.

In addition, Tata Motors' joint venture with Cummins Engine Company, USA, in 1992, was a
pioneering effort to introduce emission control technology for India.

By this time, Tata Motors has consistently worked on setting up an advanced emission-testing
laboratory. Owing to the intention of protecting the environment, Tata Motors works on the up-
gradation of the performance of its entire four and six-cylinder engines to cope with international
emission standards.

Lately, in the month of February 2018, Tata Motors announced their sales growth of 45% extra
on their domestic passenger vehicles. The auto expo happened in the year, brought oomph to the
Company Sales. To enumerate, Tata Tiago, Nexus, Tiger, and Zest. And others made rapid sales
growth. But the export rate has declined by 3%.

23
Tata Motors Limited (TML), a $42 billion organisation, is India's largest automobile company
and is a leading global manufacturer of cars, utility vehicles, buses, trucks and defence vehicles.
Incorporated in India in the year 1945, Tata Motors is a part of the over $100 billion Tata Group
founded by Jamsetji Tata in 1868. Recognised for its world-class quality, originality, engineering
and design excellence, the Company is on the path of shaping the future of mobility in India.
Sustainability and the spirit of 'giving back to society' is our guiding philosophy and good
corporate citizenship is strongly embedded in our DNA. With a large global footprint, the
Company has consolidated its position as the Tata Motors Group through mergers and
acquisitions. It has a network of 76 subsidiaries in India and internationally, which provide a host
of engineering and automotive solutions. Some of the world's most iconic brands, including
Jaguar Land Rover in the UK and Tata Daewoo in South Korea form part of the automotive
operations of the Group.

24
TATA AND ITS OTHER BRANDS

Tata Motors has a remarkable portfolio of both passenger and commercial vehicles and have
been leading India's commercial vehicles space for several years. The Company operates six
principal automotive manufacturing facilities in India: at Jamshedpur in the state of Jharkhand, at
Pune in the state of Maharashtra, at Lucknow in the state of Uttar Pradesh, at Pantnagar in the
state of Uttarakhand, at Sanand in the state of Gujarat and at Dharwad in the state of Karnataka.
Tata Motor's Operating Philosophy is reflected in its Vision, Mission and Values.

25
Vision

As a High-Performance Organisation, we are, by FY

VALUES
2019
 Integrity
Among the top 3 in Global CV and Domestic PV  Teamwork
Achieving Sustainable Financial Performance  Accountability
Delivering Exciting Innovations

MISSIONS

We innovate mobility solutions with passion to enhance quality of life

26
TATA DAEWOO COMMERCIAL VEHICLES

Tata Daewoo Commercial Vehicle Company (TDCV) is South Korea's second largest
manufacturer of medium and heavy-duty trucks. Formerly part of the Daewoo Group, the
acquired by Tata Motors in March cas markets by exporting products to about 60 countries.

2nd Largest MANUFACTURER OF MEDIUM AND HEAVY-DUTY

TRUCKS IN SOUTH KOREA

TATA MOTORS FINANCE LIMITED

Tata Motors Finance Limited (TMFL) was incorporated on June 1, 2006, with the objective of
becoming a preferred financing provider for the customers of TML's dealers. TMFL is registered
with the RBI as a Non-Deposit Taking Non-Banking Financial Company (N. BFC) and is
classified as an Asset Finance Company under the RBI's regulation on NBFCs

27
JAGUAR LAND ROVER

(JLR) is Britain's largest automotive manufacturer which designs, manufactures and sells some
of the world's best known premium cars. The two iconic brands of JLR include Jaguar, with a
range of luxury sedans, sports cars and luxury performance SUVs and Land Rover, which
encompasses a portfolio of premium all-terrain vehicles. Tata Motors acquired JLR in 2008. JLR
has four principal automotive manufacturing facilities in the United Kingdom at Solihull, Castle
Bromwich, Halewood and the Engine Manufacturing Centre at Wolverhampton. It also has two
product development facilities in the United Kingdom at Gaydon and Whitley. Jaguar Land
Rover also owns a joint venture manufacturing plant under its China Joint Venture, in Changshu,
near Shanghai. Expanding its footprint, the firm opened a new manufacturing facility in Brazil
and is currently building manufacturing facilities in Slovakia and tied up a contract
manufacturing with Magna Steyr in Austria. Jaguar Land Rover is known for its hallmark quality
and excellence, strong global distribution network, path-breaking product development and
engineering capabilities.

28
TAMO

TATA MOTORS - TAMO

We believe in delivering innovation that improves the quality of life for our customers. With the
objective of foraying into future mobility solutions, we introduced a sub-brand - TAMO - as a
core element of our transformation journey, 'FutuReady'. The first innovation from TAMO will
be to redefine connected and personalised driving experiences for Indian customers. Leveraging
Expertise for Connectivity TAMO will operate 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. It will act as an open platform to network with global start-ups and leading tech
companies to get access to trends, innovations and solutions, for the design of exciting future
products and services. For the rapidly changing automotive environment, TAMO will transform
the experience of interfacing and interacting with customers and the wider community. We are
collaborating with Microsoft to leverage its connected vehicle technologies.

29
TATA MOTORS GROUP - EMBRACING THE FUTURE OF MOBILITY

New technologies, new business models and new partnerships are fast emerging across the
world. Both Tata Motors and Jaguar Land Rover are enhancing customer experiences, while
being able to deal with the discontinuity and disruption in the market, which comes from new
technologies, competition and evolving customer behaviour.

JAGUAR LAND ROVER - INMOTION VENTURE

New technologies, new business models and new partnerships are fast emerging across the
world. Both Tata Motors and Jaguar Land Rover are enhancing customer experiences, while
being able to deal with the discontinuity and disruption in the market, which comes from new
technologies, competition and evolving customer behaviour. Our subsidiary, Jaguar Land Rover,
through its subsidiary In Motion, offers new digital solutions and on-demand services that meet
modern travel and transport challenges of today's consumers. Its long-term ambition is to remain
at the forefront of customer-first innovation by creating visionary premium products that respond
to changing lifestyles and mobility trends.

Pioneering Connected Autonomous Vehicles

Jaguar Land Rover is working towards global leadership in Connected Autonomous Vehicles.
Unrivalled driving experiences and vehicle performance and capability remain central to its
strategy. Jaguar Land Rover's Advanced Driver Assistance Systems, including autonomous
emergency braking and park assist, are its stepping stones to full autonomy. Through
technologies like CloudCar and Connected Car diagnostics, Jaguar Land Rover is pioneering the
use of real-time data from its vehicle

Innovating for a Greener, Smarter Tomorrow

Jaguar Land Rover is introducing a range of alternative powertrains for 2018 and beyond. This
includes full electric, hybrid and mild hybrid solutions. By 2020 half of its range will be
available with an alternative power option to meet the differing needs of the customers. Jaguar
Land Rover is working towards integrating connected and autonomous technology with low-
carbon ecosystems.

30
 CHAPTER 4
RESEARCH METHODOLOGY AND
DATA COLLECTION

31
Research methodology

Research methodology is a collective term for the structured process of conducting research.
There are many different methodologies used in various types of research and the tem is usually
considered to include research design, data gathering, and data analysis Research methodology
seeks to inform: Why a research study has been undertaken, how the research problem has been
defined, in what way and why the hypothesis has been formulated. what data have been collected
and what particular method has been adopted, why particular technique of analysing data has
been used and a host of similar other questions are usually answered when we talk of research
methodology concerning a research problem or study.

In simple terms, research methodology is used to give a clear-cut idea of what the researcher is
carrying out his or her research. In order to plan at the right point of time and to advance the
research work, research methodology makes the right platform for the researcher to map out the
research work in relevance to make solid plans. Moreover, research methodology guides the
researcher to involve and be active in his or her particular field of inquiry. Most of the time, the
aim of the research and the research topic won't be the same at all times it varies from the
objectives and flow of the research, but by adopting a suitable methodology this can be achived.

Right from selecting the topic and carrying out the research, the research methodology drives the
researcher on the right track. The entire research plan is based on the concept of the right
research methodology. Moreover, through the research methodology, the external environment
constitutes the research by giving an in-depth idea on setting the right research objective,
followed by literature point of view, based on that chosen analysis through interviews or
questionnaires findings will be obtained and finally concluded the message by this research.

32
 More contextual

 Participatory Analysis
 Ethnographic Investigations  Longitudinal village/ Urban
 Rapid Asssesments surveys

DATA
More Qualitative More Quantitative

 Household and health surveys

 Qualitative Module of  Epidemological surveys
questionnaire survey

Less contexual

The research methodology constitutes the internal environment by understanding and identifying
the right type of research, strategy, philosophy, time horizon, and approaches, followed by the
right procedures and techniques based on his or her research work. Additionally, the research
methodology acts as the nerve centre because the entire research is bounded by it, and to perform
good research work, the internal and external environment has to follow the right research
methodology process.

The system of collecting data for research projects is known as a research methodology. The data
may be collected for either theoretical or practical research for example management research
may be strategically conceptualized along with operational planning methods and change
management. Some important factors in research methodology include the validity of research
data, ethics, and the reliability of most of your work is finished by the time you finish the
analysis of your data. This is followed by a research design, which may be either experimental or
quasi-experimental. The last two stages are data analysis and finally writing the research paper,
which is organized carefully into graphs and tables so that only important relevant data is shown.

33
It is necessary for a researcher to design a research methodology for the problem chosen. One
should note that even if the research method considered for two problems are the same the
research methodology may be different. It is important for the researcher to know not only the
research methods necessary for the research undertaken but also the methodology. example, a
researcher not only needs to know how to calculate the mean, variance, any fisantation function
for a set of data, how to find a solution to a physical system described by amathematical model,
how to determine the roots of algebraic equations and how to apply a particular method but also
need to know (i) which is a suitable method for the chosen problem?, (ii) what is the order of
accuracy of the result of a method?, (iii) what is the efficiency of the method? And so on.
Considerations of these aspects constitute a research methodology. More precisely, research
methods help us get a solution to a problem. On the other hand, the research methodology is
concerned with the explanation of the following:

(1) Why is a particular research study undertaken?

(2) How did one formulate a research problem?

(3) What types of data were collected?

(4) What particular method has been used?

(5) Why was a particular technique of analysis of data used?

The study of research methods gives the training to apply them to a problem. The study of
research methodology provides us with the necessary training in choosing research methods,
materials, scientific tools, and training in techniques relevant to the problem chosen.

Indeed Editorial Team

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and
subject matter experts equipped with Indeed data and insights to deliver useful tips to help guide
your career journey.

In a thesis, dissertation, academic journal article or other formal pieces of research, there are
often details of how the researcher approached the study and the methods and techniques they
used. If you're designing a research study, then it's helpful to understand what research

34
methodology is and the selection of techniques and tools available to you. In this article, we
explore what research methodology is, the types of research methodologies and the techniques
and tools commonly used to collect and analyse data.

What is research methodology?

Research methodology is a way of explaining how a researcher intends to carry out their
research. It's a logical, systematic plan to resolve a research problem. A methodology details a
researcher's approach to the research to ensure reliable, valid results that address their aims and
objectives. It encompasses what data they're going to collect and where from, as well as how it's
being collected and analysed.

Why is a research methodology important?

A research methodology gives research legitimacy and provides scientifically sound findings. It
also provides a detailed plan that helps to keep researchers on track, making the process smooth,
effective and manageable. A researcher's methodology allows the reader to understand the
approach and methods used to reach conclusions.

Having a sound research methodology in place provides the following benefits:

 Other researchers who want to replicate the research have enough information to do so.

 Researchers who receive criticism can refer to the methodology and explain their
approach.

 It can help provide researchers with a specific plan to follow throughout their research.

 The methodology design process helps researchers select the correct methods for the
objectives.

 It allows researchers to document what they intend to achieve with the research from the
outset.

35
Types of research methodology
When designing a research methodology, a researcher has several decisions to make. One of the
most important is which data methodology to use, qualitative, quantitative or a combination of
the two. No matter the type of research, the data gathered will be as numbers or descriptions, and
researchers can choose to focus on collecting words, numbers or both.

Here are the different methodologies and their applications:

Qualitative

Qualitative research involves collecting and analysing written or spoken words and textual data.
It may also focus on body language or visual elements and help to create a detailed description of
a researcher's observations. Researchers usually gather qualitative data through interviews,
observation and focus groups using a few carefully chosen participants.

This research methodology is subjective and more time-consuming than using quantitative data.
Researchers often use a qualitative methodology when the aims and objectives of the research
are exploratory. For example, when they perform research to understand human perceptions
regarding an event, person or product.

Key Characteristics of Qualitative Research

 Events can be understood adequately only if they are seen in context. Therefore, a
qualitative researcher immerses her/himself in the setting.

 The contexts of inquiry are not contrived; they are natural. Nothing is predefined or taken
for granted.

 Qualitative researchers want those who are studied to speak for themselves, to provide
their perspectives in words and other actions. Therefore, qualitative research is an
interactive process in which the persons studied teach the researcher about their lives.

 Qualitative methods are appropriate to the above statements. There is no one general
method.

 For many qualitative researchers, the process entails appraisal of what was studied

36
  Qualitative implies a direct concern with experience as it is 'lived' or 'felt' or 'undergone',
then, has the aim of understanding experience as nearly as possible as its participants feel
it or live it.

Quantitative
Researchers usually use a quantitative methodology when the objective of the research is to
Confirm something. It focuses on collecting, testing and measuring numerical data, usually from
a large sample of participants. They then analyse the data using statistical analysis and
Comparisons. Popular methods used to gather quantitative data are:

 Suveys
 Questionaires
 Test
 Databases
 Organizational Records

Key Characteristics of Quantitative Research

 Control: This is the most important element because it enables the scientist to identify
the causes of his or her observations. Experiments are conducted in an attempt to answer
certain questions. They represent attempts to identify why something happens, what
causes some event, or under what conditions an event does occur. Control is necessary in
order to provide unambiguous answers to such questions. To answer questions in
education and social science we have to eliminate the simultaneous influence of many
variables to isolate the cause of an effect. Controlled inquiry is absolutely essential to this
because without it the cause of an effect could not be isolated.

 Operational Definition: This means that terms must be defined by the steps or
operations used to measure them. Such a procedure is necessary to eliminate any
confusion in meaning and communication. Consider the statement 'Anxiety
causesstudents to score poorly on tests. One might ask, 'what is meant by anxiety?"
Stating that anxiety refers to being tense or some other such term only adds to the
confusion. However, stating that anxiety refers to a score over a criterion level on an
anxiety scale enables others to realize what you mean by anxiety. Stating an operational
definition forces one to identify the empirical referents or terms. In this manner,
ambiguity is minimized. Again, introversion may be defined as a score on a particular

37
 personality scale, hunger as so many hours since the last feed, and social class as defined
by occupation.
 Replication: To be replicable, the data obtained in an experiment must be reliable; that
is, the same result must be found in the study is repeated. If observations are not
repeatable, our descriptions and explanations are thought to be unreliable.
 Hypothesis Testing: The systematic creation of a hypothesis and subjecting it to an
empirical test.

This research methodology is objective and is often quicker as researchers use software
programs when analysing the data. An example of how researchers could use a quantitative
methodology is to measure the relationship between two variables or test a set of hypotheses.

Mixed-method

This contemporary research methodology combines quantitative and qualitative approaches to

provide additional perspectives, create a richer picture and present multiple findings. The
quantitative methodology provides definitive facts and figures, while the qualitative provides a
human aspect. This methodology can produce interesting results as it presents exact data while
also being exploratory.

Types of sampling design in research methodology

When creating a sample design, a researcher decides from who or what they'll collect data. They
also choose the techniques and procedures they'll use to select items or individuals for the
sample. There are several types of sample design that fall into two main categories

Probability sampling

This sampling method uses a random sample from the pool of people or items you're interested
in, called the population, and are random or chance sampling. Every person or item in the
population has an equal chance of being selected. Using this method is the best way to get a truly
representative sample, and researchers can generalize the study's results to the entire population.

Nonprobability sampling

Nonprobability sampling is not random, as the researcher deliberately selects people or items for
the sample. Researchers also refer to this method as deliberate sampling, judgment sampling or
purposive sampling. Every person or item in the population doesn't have an equal chance of
being selected, and the results are typically not generalizable to the entire population.

38
Common data collection methods

Once a researcher has finalized their population sample, they need to decide how to collect data.
There are several options for data collection, and the best research method to use will depend on
the research topic, methodology, type of data and the population sample. Although there are
many ways to collect data, people often broadly group them in these ways:

 Interviews: Researchers can carry out interviews in a structured, semi-structured, or

unstructured format, depending on how formal the questions are.

 Surveys: Surveys can be online or in-person and have either free-answer, essay-style
questions, or closed, multiple-choice style questions. Depending on the data required, a
survey could also use a mixture.

 Focus groups: Focus groups have interviewees give their thoughts, opinions,
perspectives and perceptions on specific topics. A moderator usually leads the group to
help guide the discussion and ensure everyone has a chance to share their thoughts.

 Observations: Direct observation involves observing the spontaneous behaviour of

participants without interference from the researcher, while participant observation is
more structured, and the researcher interacts with the participants.

 Documents and records: Researchers collect data such as published reports and official
documents of international bodies, government agencies or private institutes and internal
records such as employees' payroll, raw material quantities and cash receipts.

Common data analysis methods

Researchers use different data analysis methods depending or quantitative. For example: on
whether the data is qualitative

Qualitative data analysis

39
Qualitative data is usually in spoken or written information, such as interview transcripts, video
and audio recordings, notes, images and text documents. Qualitative data analysis involves
identifying common patterns in participants' responses and critically analysing them to achieve
research aims and objectives.

The most commonly used qualitative data analysis methods are:

 Content analysis: This is one of the most common methods used to analyse documented
information and is usually used to analyse interviewees' responses.
 Narrative analysis: Researchers use this method to analyse content from several sources,
including interviews, observations and surveys. It focuses on using people's stories and
experiences to answer research questions.
 Discourse analysis: This method analyses spoken or written language in its social
context and aims to understand how people use language in day-to-day situations.
 Grounded theory: This method uses qualitative data to discover or construct a theory
explaining why something happened. It uses a comparative analysis of data from similar
cases in different settings to derive explanations.

Quantitative data analysis

Quantitative data analysis involves turning numbers into meaningful data by applying rational
and critical thinking. Most researchers use analytical software to assist with quantitative data
analysis. The first stage in analysing quantitative data is validating, editing and coding the data.
Once completed, the data is ready for analysis. The most commonly used quantitative data
analysis methods are:

 Descriptive analysis: This method uses descriptive statistics like mean, median, mode,
percentage, frequency and range to find patterns.
 Inferential analysis: This method shows the relationships between multiple variables
using correlation, regression and variance analysis.

Factors to consider when choosing a research methodology

Here are some factors to consider when choosing a research methodology:

40
 The research objective: Consider the research project objective. When researchers know
what information they require at the end of the project to meet their objectives, it helps
them select the correct methodology and research method.
 Significance of statistics: Another factor to consider is whether you require concise,
data-driven research results and statistical answers. Or whether the research questions
require an understanding of reasons, perceptions, opinions and motivations.
 Nature of the research: If the aims and objectives are exploratory, the research will
probably require qualitative data collection methods. However, if the aims and objectives
are to measure or test something, the research will require quantitative data collection
methods.
 Sample size: How big does the sample need to be to answer the research questions and
meet the objectives? The sample size can determine your data-gathering methods, such as
whether to use in-person interviews or smaller samples or online surveys for larger ones.
 Time available: If there are time constraints, consider techniques like random or
convenience sampling and tools that allow for data collection in a few days. If there's
more time available for data collection, in-person interviews and observations are
possible.

41
Objectives

 To study the financial performance of TATA Motors.

 To access the financial structure of TATA Motors.
 To identify financial position through ratio analysis.
 To examine the changes in the assets and liabilities of TATA Motors for last 5 years.

42
 CHAPTER 5
DATA ANALYSIS AND INTERPRETATION

43
LIQUIDTY RATIOS

44
CURRENT RATIOS

YEARS CURENT RATIO

2019 0.85
2020 0.85
2021 0.93
2022 0.98
2023 0.98

0.95

0.9

0.98 0.98
0.85
0.93

0.8 0.85 0.85

0.75
2019 2020 2021 2022 2023

CURENT RATIO

45
QUICK RATIO:

YEAR QUICK RATIOS

2019 0.58
2020 0.58
2021 0.70
2022 0.74
2023 0.71

QUICK RATIOS
0.8

0.7 0.74
0.7 0.71

0.6
0.58 0.58
0.5
QUICK RATIOS
0.4

0.3

0.2

0.1

0
2019 2020 2021 2022 2023

46
SOLVENCY RATIOS

47
DEBT EQUITY RATIO:

YEAR DEBT EQUITY RATIO

2019 0.79
2020 1..14
2021 1.14
2022 1.17
2023 0.84

DEBT EQUITY RATIO

DEBT EQUITY RATIO

1.14 1.14 1.17

0.84
0.79

2019 2020 2021 2022 2023

48
PROFITABLITY RATIOS

49
GROSS PROFIT RATIO:

YEAR GROSS PROFIT RATIO IN %

2019 0.35
2020 -1.31
2021 3.49
2022 -0.04
2023 2.04

GROSS PROFIT RATIO

4.00%

3.00%

2.00%

Axis Title 1.00%

0.00%
2019 2020 2021 2022 2023

-1.00%

-2.00%
Axis Title

50
NET PROFIT RATIO:

YEAR NET PROFIT RATIO IN %

2019 -9.54
2020 -4.62
2021 -5.38
2022 -4.10
2023 0.69

NET PROFIT RATIO IN

2.00%

0.00%
2019 2020 2021 2022 2023

-2.00%

-4.00%
NET PROFIT RATIO IN

-6.00%

-8.00%

-10.00%

-12.00%
YEARS

51
RETURN ON CAPITAL EMPLOYED

YEAR ROCE/ROI In %
2019 2.67
2020 -0.28
2021 6.69
2022 1.59
2023 6.83

ROCE/ROI In %
8.00%

7.00%
6.69% 6.83%
6.00%

5.00%
ROCE/ROI In %
4.00%

3.00%
2.67%
2.00%
1.59%
1.00%

0.00% -0.28%
2019 2020 2021 2022 2023
-1.00%

52
OPERATING PROFIT RATIO:

YEAR OPERATING PROFIT RATIO In %

2019 8.16
2020 6.88
2021 12.92
2022 8.87
2023 9.22

OPERATING PROFIT RATIO

14.00%

12.92%
12.00%

10.00%
9.22%
8.00% 8.87% OPERATING PROFIT RATIO
8.16%
6.88%
6.00%

4.00%

2.00%

0.00%
2019 2020 2021 2022 2023

53
54