TATA MOTORS LIMITED

Presented By :-Dharmesh Joshi (08)Harsh Trivedi (21)Ankit Porwal (36)

Guided By:-

Prof. Bharat Shah

“Best in the manners in which we operate, Best in the products which we delivers, And Best in our value system and ethics.”

Tata Motors Limited is not only India’s largest automobile company but also the fourth largest truck manufacturing company in the world and second largest bus manufacturing company in the world.

Tata Motors Limited a part of Tata Group , formerly known as TELCO(Tata Engineering And Locomotive Company), started with the manufacturing of locomotives in 1945 and in 1954 they started the manufacturing of vehicles.

The company’s manufacturing base is spread across Jamshedpur, Pune, Lukhnow, Patnanagar and Singur in India.

Tata Motors also markets and distributes Fiat branded cars in India.

Tata Motors is the first company from India’s Engineering Sector to be listed in Newyork Stock Exchange(NYSE) in Sep 2004.

Through Subsidiary and Associated companies, it has operations in UK, South Korea, Spain and Thailand.

Tata Motors launched their much awaited Tata Nano, noted for its Rs 1,00,000 price-tag, in January 2008.

In March 2008, it finalized a deal with Ford Company to acquire their British Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names. The purchase was completed on 2nd June 2008.

Subsidiary Companies % Stake Subsidiary Companies % Stake

Concorde Motors (India) Limited (CMIL)

100 TML Distribution Company Limited (TDCL)

100

Tata Motors European Technical Centre plc. (TMETC)

100 Tata Motors (SA) Proprietary Limited (TMSA)

60

Sheba Properties Limited 100 Tata Motors (Thailand) Limited (TMTL)

70

TAL Manufacturing Solutions Limited (TAL)

100 Tata Technologies Limited (TTL)

81.71

Tata Daewoo Commercial Vehicle Company Limited (TDCV), Korea

100 Tata Marcopolo Motors Ltd. (TMML)

51

Tata Motors Finance Limited (TMFL)

100 HV Transmissions Limited (HVTL) and HV Axles Limited (HVAL)

85

Tata Motors Insurance Broking & Advisory Services Limited (TMIBASL)

100 Telco Construction Equipment Company Limited (Telcon)

60

Associated Companies (Major) % Stake

Automobile Corporation of Goa Limited (ACGL) 37.79

Hispano Carrocera S.A. (HC) 21

Hispano Carrocera S.A. (HC) 40

Tata Auto Comp Systems Limited (TACO) 50

Tata Cummins Limited (TCL) 50

Tata Precision Industries Pte. Ltd. 49.99

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31,2008

PARTICULARS AS ON 31ST MARCH 2008

AS ON 31ST MARCH 2007

% CHANGE

INCOME Rs. In Crore

1. Sale of products and other income from operations 33093.93 31819.48 4.01 %

Less- Excise duty 4363.11 4349.45 0.31%

28730.82 27470.03 4.59%

2. Dividend and other income 483.18 245.19 97.06%

A 29214.00 27715.22 5.41%

EXPENDITURE

3. Manufacturing and other expenses 26769.90 24734.71 8.22%

4. Expenditure transferred to capital and other accounts (1131.40) (577.05) 96.07%

B 25638.50 24157.66 6.13%

PROFIT BEFORE DEPRECIATION, INTEREST AND TAX-(PBDIT)- (A-B)

3575.50 3557.56 0.51%

5. Product development expenditure 64.35 85.02 (24.31)%

6.Depreciation 652.31 586.29 11.26%

7. Interest and discounting charges 282.37 313.07 (9.80)%

PARTICULARS AS ON 31ST MARCH 2008

AS ON 31ST MARCH 2007

% CHANGE

PROFIT BEFORE TAX –(PBT) 2576.47 2573.18 0.13%

8. Tax Expenses (547.55) (659.72) (17.00)%

PROFIT AFTER TAX-(PAT) 2028.92 1913.46 6.03%

9. Balance Brought Forward From Previous Year 1013.83 776.76 30.52%

Amount Available For Appropriation 3042.75 2690.22 13.11%

10. APPROPRIATIONS

a) Proposed Dividend 578.43 578.07 0.06%

b) Tax on proposed dividend 81.25 98.25 (17.30)%

c) Residual dividend paid for year 2005-06 ( including tax)

- 0.07

d) General Reserve 1000.00 1000.00

e) Balance carried to balance sheet- 1383.07 1013.83 36.42%

Earning Available for Equity Share holder 3042.75 2690.22 13.11%

11) EARNING PER SHARE a)- Basic 52.64 49.76

b)- Diluted 48.28 47.24

BALANCE SHEET AS MARCH 31 2008

Balance sheet as on march 31, 2008PARTICULARS AS ON 31ST

MARCH 2008AS ON 31ST MARCH 2007

% CHANGE

SOURCES OF FUND ( Rs. In Crores)

1 .SHAREHOLDERS FUND

A. Share Capital 385.54 385.41 0.03%

B. Reserves and Surplus 7453.96 6484.34 14.95%

C 7839.50 6869.75 14.12%

2. LOAN FUNDS

a) Secured 2461.99 2022.04 21.76%

b) Unsecured 3818.53 1987.10 92.17%

D 6280.52 4009.14 56.66%

3. DIFFERED TAX LIABILITIES ( NET) E 975.72 786.83 24.01%

4. TOTAL FUNDS EMPLOYED (C+D+E) 15095.74 11665.72 29.40%

APPLICATION OF FUNDS

5. Fixed Assets

a) Gross block 10830.83 8775.80 23.42%

b) Less –Depreciation 5443.52 4894.54 11.22%

c) Net Block 5387.31 3881.26 38.80%

d) Capital Work In Progress 5064.96 2513.32 101.52%

10452.27 6394.58 63.46%

PARTICULARS AS ON 31ST MARCH 2008

AS ON 31ST MARCH 2007

% CHANGE

6 . INVESTMENTS 4910.27 2477.00 98.23%

7. CURRENT ASSETS, LOANS AND ADVANCES

a) interest accrued on investments 0.86 5.94 (85.52)%

b) inventories 2421.83 2500.95 (3.16)%

c) Sundry Debtors 1130.73 782.18 44.56%

d) Cash and bank Balances 2397.31 826.76 189.96%

e) loans and Advances 4433.05 6396.22 (30.69)%

10383.78 10512.05 (1.22)%

8. CURRENT LIABILITIES AND PROVISIONS

a) Current Liabilities 8667.20 6363.68 36.19%

b) provisions 1989.43 1364.32 45.81%

10656.63 7728.00 37.89%

9) NET CURRENT ASSETS ( 7-8) (272.85) 2784.05 (109.80)%

10) MISCELLENIOUS EXPENDITURE 6.05 10.09 (40.04)%

11) TOTAL ASSETS (NET) 15095.74 11665.72 22.72%

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH

31,2008

PARTICULARS 2007-2008 2006-2007 % CHANGE

A) CASH FLOW FROM OPERATING ACTIVITIES Rs. In Crores

Profit after tax 2028.92 1913.46 6.03%

Adjustments for :-

Depreciation (including Lease Equalization adjusted in income)

647.82 582.51 11.21%

Profit on sale of assets (net) (20.56) (14.64) 40.44%

Profit on sale of investments (net) (168.62) (35.48) 375.25%

Income from transfer of Technology (169.40) -

Provision for inter corporate deposits (net) (0.77) -

Gain on transfer of activity relating to financing of Construction Equipment

(30.00) -

Wealth tax (0.30) 0.65 (146.15)%

Tax expense 547.55 659.72 (17.00)%

Interest / Dividend (net) 30.74 103.36 (70.26)%

Exchange differences (46.34) (62.17) (25.46)%

Employee Separation Cost 4.04 4.03 0.25%

731.23 1239.07 (40.99)

Operating profit before working capital changes 2760.15 3152.53 (12.45)%

PARTICULARS 2007-2008 2006-2007 % CHANGE

Adjustment for:-

Trade and other receivables (490.87) (377.38) 30.07%

Inventories 79.12 (488.71) 116.19%

Trade and other payables 2076.32 592.19 250.62%

1664.57 (273.90) 707.73%

Vehicle loans and hire purchase receivables 2046.80 (178.11) 1249.18%

3711.37 (452.01) 921.08%

Cash generated from operations 6471.52 2700.52 139.64%

Direct taxes refund / (paid) (net) (297.02) (490.39) 39.43%

Net Cash from Operating Activities 6174.50 2210.13 179.37%

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets (4411.26) (2461.19) 79.23%

Sale of fixed assets 39.32 95.15 58.68%

Proceeds from transfer Technology 169.40 -

Proceeds from transfer of activity relating to financing of Construction Equipment

210.61 -

Loans to associates and subsidiaries (53.34) -

Advance against investments in subsidiary company (0.05) -

PARTICULARS 2007-2008 2006-2007 % CHANGE

Investments in subsidiary companies (664.44) (561.64) 18.30%

Investments in associate companies (91.91) -

Investments in joint venture (601.59) -

Investments in Mutual Fund (made)/ sold (net) (682.72) 137.17 597.72%

Investments – others (421.26) (6.75) 6140.89%

Sale of investments in subsidiary companies 164.25 -

Sale of investments in associate company 18.39 -

Sale / redemption of investments – others 106.37 34.50 208.32%

Interest received 128.18 41.20 211.12%

Dividend / Income on investments received 144.67 207.63 30.32%

Decrease / (Increase) in short term Inter-corporate deposits 182.34 (262.51) 169.46%

Net Cash used in Investing Activities (5721.86) (2805.10) 103.98%

PARTICULARS 2007-2008 2006-2007 % CHANGE

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of Convertible Alternative Reference Securities

1969.99 -

Stamp duty on FCCN conversion (0.01) (0.09) 88.80%

Proceeds from long term borrowings (2827.70) 1783.92 58.51%

Repayment of long term borrowings 2831.24 (814.26) 247.71%

Payment of premium on long term forward contracts - (3.07)

Increase in short term loans (net) 405.48 273.80 48.09%

Dividend paid (including Dividend tax) (674.91) (566.70) 19.09%

Interest paid 564.55 (370.02) 52.57%

Net Cash from Financing Activities 1132.46 303.58 273.04%

RATIO- ANALYSIS

Profitability Ratio -1RATIOS 2008 2007

Gross profit Ratio (%) 8.17 7.50

COGS / Net Sales (%) 91.83 92.50

Operating Ratio (%) 90.49 89.34

Operating Profit Ratio (%) 9.51 10.66

Net Profit Margin (%) 6.24 6.16

Profitability Ratio-2RATIOS 2008 2007

Return On Investment (%) 21.90 30.45

Return On Shareholders Fund / Return On Equity (%)

25.88 27.85

Return On ordinary Shareholders fund(%)

25.88 27.85

Return on Ordinary Share Capital (%) 526.25 496.47

Earning per Share ( Times) 52.64 49.76

Capital Structure RatioRATIOS 2008 2007

Proprietary Ratio (Times) 51.93 58.89

Debt – Equity Ratio (Times) 0.80 0.58

Capital Gearing Ratio (Times) 0.80 0.58

Long Term Solvency RatioRATIOS 2008 2007

Interest Coverage Ratio (Times) 12.66 11.36

Preferred Dividend Coverage Ratio - -

Short Term Solvency RatioRATIOS 2008 2007

Current Ratio (Times) 0.97 1.36

Quick Ratio ( Times) 0.75 1.04

Cash Position Ratio (Times) 0.22 0.11

Turnover / Activity Ratio

RATIOS 2008 2007

Fixed Asset Turn Over Ratio (Times) 6.04 8.00

Working Capital Turn Over Ratio (Times) (119.19) 11.16

Debtors Turn Over Ratio (Times) 34 -

Creditors Turn Over Ratio (Times) 4.62 -

Investors RatioRATIOS 2008 2007

Dividend Per Share (Rs.) 15 15

Earning per Share (Rs.) 52.63 49.64

Dividend payout Ratio (Net profit) 0.19 0.21

Earning Retention Ratio 0.81 0.79

Price Earning Ratio 12.43 14.47

Dividend Yield Ratio 2.29 2.08

COMPARATIVE ANALYSISTATA Motors HINDUSTAN Motors

G.P. Ratio 8.17% 21.93%

Debt Equity Ratio 0.80Times 0.69 Times

Current Ratio 0.97 Times 1.05 Times

P/E Ratio 12.43 Times 17.33 Times

EPS 52.63 Rs. 1.91 Rs.

PAT 20,28,92,00,000 30,84,15,000

SOURCES OF REVENUE

81.46

8.624.7

2.69 1.08 1.44

83.17

8.56

3.78

2.02 1.70.7600000000000

02

Domestic Vehicle Sales Exports

Vehicle Spare Parts Others

Vehicle Financing Dividend & Other Income

2007-08 2006-07

62.7914.97

9.054.6

4.08

1.941.720.84000000000

0001

61.916.26

9.14.273.86

1.83 1.8 0.98

materials taxes & Duties Operations &other expenses

Employees Reserves depreciation

Shareholders Interest

DISTRIBUTION OF REVENUERs. In Crores

2007-08 2006-07

PRODUCT MIX -Volumes

2004 2005 2006 2007 20080

20

40

60

80

100

120

52 52 54 58 60

48 48 46 42 40Passenger Ve-hiclesCommercial Ve-hicles

Earning per share Vs

Dividend per share

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

-30

-20

-10

0

10

20

30

40

50

60

21.92

30.4

11.51

3.81 2.78

-18.45

-1.98

9.38

24.86

34.38

40.57

49.7652.64

68

5.53 2.5

0 04

812.5 13

15 15

Earning Per Share dividend per Share

The performance of the company’s stock price