Balance sheet

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

Equity share capital

272.62

239.07

238.03

233.40

116.01

Share application money

Preference share capital

Reserves & surplus

4,959.26

4,098.53

3,302.01

2,662.14

1,881.93

Secured loans

981.00

617.26

106.65

216.68

336.82

Unsecured loans

3,071.76

1,969.80

1,529.35

666.71

715.80

Total

9,284.64

6,924.66

5,176.05

3,778.92

3,050.56

Gross block

4,893.89

3,552.64

3,180.57

2,859.25

2,676.51

Less : revaluation reserve

12.09

12.47

12.86

13.33

14.32

Less : accumulated depreciation

2,326.29

1,841.68

1,639.12

1,510.27

1,335.56

Net block

2,555.51

1,698.49

1,528.59

1,335.65

1,326.63

Capital work-in-progress

646.73

649.94

329.72

205.46

133.93

Investments

5,786.41

4,215.06

2,237.46

1,669.09

1,189.79

Current assets, loans & advances

5,081.20

3,816.41

3,916.94

2,805.04

2,356.41

Less : current liabilities & provisions

4,797.76

3,468.77

2,854.20

2,254.37

1,980.58

Total net current assets

283.44

347.64

1,062.74

550.66

375.83

Miscellaneous expenses not written

12.55

13.53

17.55

18.05

24.38

Total

9,284.64

6,924.66

5,176.05

3,778.92

3,050.56

Sources of funds
Owner's fund

Loan funds

Uses of funds
Fixed assets

Net current assets

Profit & loss account

Mar '
09

Mar '
08

Mar '
07

Mar '
06

Mar '
05

#####
##

#####
##

9,921.
34

8,136.
59

6,594.
69

Material consumed

9,365.
00

7,814.
71

6,930.
76

5,782.
01

4,655.
24

Manufacturing
expenses

174.05

164.68

134

111.9

100.65

Personnel expenses

1,024.
61

853.65

666.15

551.78

464.25

Selling expenses

575.34

804.51

635.1

458.32

369.72

Adminstrative
expenses

937.56

561.66

466.22

387.57

317.79

Expenses
capitalised

-42.83

-46.49

-47.1

-26.53

-31.84

Cost of sales

#####
##

#####
##

8,785.
12

7,265.
04

5,875.
81

Operating profit

1,092.
25

1,157.
65

1,136.
22

871.54

718.88

Other recurring
income

305.98

364.05

404.87

195.82

186.46

Financial expenses

134.12

87.59

19.8

26.96

30.24

Income

Operating income

Expenses

Cont

Mar '
09

Mar '
08

Mar '
07

Mar '
06

Mar '
05

Depreciation

291.51

238.66

209.59

200.01

184.05

Other write offs

0.59

0.33

0.28

0.15

972.6

1,194.
86

1,311.
37

840.12

690.89

Tax charges

199.69

303.4

350.1

242.4

201.5

Adjusted PAT

772.91

891.46

961.28

597.72

489.39

Non recurring
items

63.87

211.91

126.3

259.38

23.28

Other non cash

adjustments

4.07

Adjusted PBT

-19.19

Reported net
profit

840.85

1,103.
37

1,068.
39

857.1

512.67

Earnigs before
appropriation

3,807.
00

3,228.
45

2,544.
13

1,853.
50

1,255.
52

Equity dividend

278.83

282.61

282.23

243.97

150.81

Preference
dividend

Dividend tax

33.23

38.48

42.5

34.22

21.15

Retained
earnings

3,494.
94

2,907.
36

2,219.
40

1,575.
31

1,083.
55

Balance sheet
Mar '
09

Mar '
08

Mar '
07

Mar '
06

Mar '
05

514.05

385.54

385.41

382.87

361.79

Sources of funds
Owner's fund
Equity share capital
Share application money

Preference share capital

Reserves & surplus

######
#

7,428.4
5

6,458.3
9

5,127.8
1

3,749.6
0

Secured loans

5,251.6
5

2,461.9
9

2,022.0
4

822.76

489.81

Unsecured loans

7,913.9
1

3,818.5
3

1,987.1
0

2,114.0
8

2,005.6
1

Total

######
#

######
#

######
#

8,447.5
2

6,606.8
1

######
#

######
#

8,775.8
0

7,971.5
5

6,611.9
5

25.07

25.51

25.95

26.39

Less : accumulated depreciation

6,259.9
0

5,443.5
2

4,894.5
4

4,401.5
1

3,454.2
8

Investments

######
#

4,910.2
7

2,477.0
0

2,015.1
5

2,912.0
6

Loan funds

Uses of funds

Fixed assets
Gross block
Less : revaluation reserve

Cont
Mar '
09

Mar '
08

Mar '
07

Mar '
06

Mar '
05

Current assets, loans &

advances

#####
##

#####
##

#####
##

9,812.
06

7,248.
88

Less : current liabilities &

provisions

#####
##

#####
##

8,321.
20

7,888.
65

7,268.
80

Total net current assets

#####
##

#####
##

1,997.
22

1,923.
41

-19.92

2.02

6.05

10.09

14.12

18.16

#####
##

#####
##

#####
##

8,447.
52

6,606.
81

Book value of unquoted

investments

#####
##

4,145.
82

2,117.
86

1,648.
57

2,480.
15

Number of equity
sharesoutstanding (Lacs)

5140.0
8

3855.0
4

3853.7
4

3828.3
4

3617.5
2

Net current assets

Miscellaneous expenses
not written
Total

Notes:

Mar '
09

Mar '
08

Mar '
07

Mar '
06

Mar '
05

#####
##

#####
##

#####
##

#####
##

#####
##

Material consumed

#####
##

#####
##

#####
##

#####
##

#####
##

Manufacturing expenses

1,171.
59

1,230.
14

1,200.
36

929.82

830.45

Personnel expenses

1,551.
39

1,544.
57

1,367.
83

1,143.
13

1,039.
34

Selling expenses

1,224.
15

1,179.
48

1,068.
56

759.54

598.75

Adminstrative expenses

1,867.
05

1,982.
79

1,488.
16

1,042.
52

911.73

Expenses capitalised

916.02

#####
##

577.05

308.85

282.43

Cost of sales

#####
##

#####
##

#####
##

#####
##

#####
##

Operating profit

1,723.
10

3,030.
52

2,586.
51

2,146.
36

2,000.
05

Other recurring income

841.54

359.42

887.23

685.18

399.94

Adjusted PBDIT

2,564.
64

3,389.
94

3,473.
74

2,831.
54

2,399.
99

Profit & loss account

Income
Operating income

Expenses

Cont

Mar '
09

Mar '
08

Mar '
07

Mar '
06

Mar '
05

934.01

2,201.
72

2,346.
68

1,886.
58

1,648.
41

12.5

547.55

660.37

524.93

415.5

921.51

1,654.
17

1,686.
31

1,361.
65

1,232.
91

Non recurring items

79.75

374.75

227.15

167.23

4.04

Other non cash

adjustments

15.29

Reported net profit

1,016.
55

2,028.
92

1,913.
39

1,528.
88

1,235.
41

Earnigs before
appropriation

2,399.
62

3,042.
75

2,690.
15

2,094.
54

1,601.
21

Equity dividend

311.61

578.43

578.07

497.94

452.19

Preference dividend

Adjusted PBT
Tax charges

Adjusted PAT

-0.07

-1.54

Dividend tax

34.09

81.25

98.25

69.84

63.42

Retained earnings

2,053.
92

2,383.
07

2,013.
83

1,526.
76

1,085.
60

COMPARATIVE
STUDY OF
MAHINDRA &
MAHINDRA

Comparative income statement Mahindra:

Particulars

2008

2007

change

1.Net Sales

113286

98952

Less: cogs

89221.8

77528

2.Gross profit

24063.7

21425

Less:op exp

12449.9

10107

3.Net op profit

11613.8

11318

Less: depreciation

2386.6

2095.9

4.EBIT

9227.2

9222.1

875.9

198

4064.4

4132.8

12415.7

13157

3034

3501

9381.7

9655.9

1652

1028

11033.7

10684

Less:intreset exp
Add: other income
5.EBT
Less: Tax
6.EAT
Add: other items
7.Net Profit

%Change
14333

14.48

2639.2

12.31

295.8

2.61

5.1

0.05

-741.2

-5.63

-274.2

-2.83

349.8

3.27

Comparative Balance statement for Mahindra:

Sources of Funds
Equity share capital

2008

2007

Change

%change

2390.73

2380.73

10.43

0.43

Preference capital

607.17

229.7

377.47

164.33

Reserves&surplus

41070

33117

7953

24.01

Loan Funds

25870.6

16360

9510.6

58.13

Current liabilities &provisions

32510.1

26656.5

5853.6

21.95

102448.6

78743.5

23705.1

30.1

Fixed assets

23609

18711.7

4897.3

26.17

Investments

42150.6

22374.6

19776

88.38

Net working capital(CA-CL)

29645.1

29103

542.1

1.86

6908.6

8378.7

-1470.1

-17.5

102448.6

78743.5

23705.1

30.1

Total
Application of funds

Loans &advances

Total

COMMON SIZE STUDY

OF
MAHINDRA & MAHINDRA

Common size income statement for Mahindra

Particulars

2008

%change

2007

%change

Net sales

113285.5

100

98952.1

100

Material Cost

76446.3

67.48

66633.6

67.33

Increase decrease
investments

1882.6

1.66

2412.6

2.43

Personal Expenses

8524.5

7.52

661.5

0.66

Manufacturing Expenses

2368.4

2.09

1819.9

1.83

Gross profit

24063.7

21.24

21424.5

21.65

Administration Selling
&distb Exp

12449.9

10.98

10106.5

10.21

EBITDA/ operating profit

11613.8

10.25

11318

11.43

Depreciation

2386.6

2.1

2095.9

2.11

EBIT

9227.2

8.14

9222.1

9.31

Interest Expenses

875.9

0.77

198

0.2

Other income

4064.4

3.58

4132.8

4.17

Pretax Income

12415.7

10.95

13156.9

13.29

Provision for tax

3034

2.67

3501

3.53

Other items

1652

1.45

1028

1.03

Net Profit

11033.7

9.73

10683.9

10.79

Adjusted Net Profit

9381.7

8.28

9655.9

9.75

Dividends

Dividend Equity

2826.1

2.49

2822.3

2.85

Common size Balance sheet for Mahindra:

Particulars

2008

%Change

2007

%Change

Sources Of Funds
Equity capital

2390.73

2.33

2380.3

3.02

Preference Share Capital

607.17

0.59

299.7

0.38

Reserves & Surplus

41070

40.09

33117

42.05

Loans & Funds

25810.6

25.19

16360

20.77

CurrentLiabilites&
Provisions

32510.1

31.73

26656.5

33.85

102448.6

100

78743.5

100

23609

23.04

18711.7

23.76

Investments

42150.6

41.14

22374.6

28.41

Working Capital

29645.1

28.93

29103

36.95

Loans & Advances

6908.6

6.74

8378.7

10.64

Miscellaneous Exp

135.3

0.13

175.5

0.22

102448.6

100

78743.5

100

TOTAL
Applications of Funds
Fixed Assets

Total

COMPARATIVE
STUDY OF
TATA MOTORS

Comparative income statement for TATA Motors:

Particulars

2008

2007

change

1.Net Sales

9126200

7692000

Less: cogs

7193800

6112500

2.Gross profit

1932400

1579500

Less:op exp

1340300

966200

3.Net op profit

592100

613300

Add: income

203000

124700

4.EBIT

795100

738000

Less:intreset exp

262500

125600

5.EBT

532600

612400

Less: Tax

177500

192100

6.EAT

355100

420300

355100

420300

Less: dividend
7.Net Profit

%Change
1434200

18.64

352900

22.34

-21200

-3.45

57100

7.73

-79800

-13.03

-65200

-15.51

-65200

-15.51

Comparative Balance statement for TATA Motors:

Sources of Funds

2008

2007

385.54

385.41

0.13

0.03

Secured loans

2461.99

2022.04

439.95

21.75

Unsecured loans

3818.53

1987.1

1831.43

92.16

Reserves & Surplus

7428.45

6458.39

970.06

15.02

14094.51

10852.94

3241.57

29.86

10426.76

6368.63

4058.13

63.72

4910.27

2477

2433.27

98.23

-1248.57

1997.22

-3245.79

-162.5

6.05

10.09

-4.04

40.03

14094.51

10852.94

3241.57

29.86

Equity share capital

Change

%change

LOANS FUNDS

Total
Application of funds

Net Fixed assets

Investments
Net working capital(CACL)

Miscellaneous Exp
Total

COMMON SIZE STUDY

OF
TATA MOTORS

Common size income statement for TATA Motors:

Particulars

2008

1.Net Sales

9126200

100

7692000

100

Less: cogs

7193800

78.82

6112500

79.46

2.Gross profit

1932400

21.17

1579500

20.53

Less:op exp

1340300

14.68

966200

12.56

3.Net op profit

592100

6.48

613300

7.97

Add: income

203000

2.22

124700

1.62

4.EBIT

795100

8.71

738000

9.59

Less:intreset exp

262500

2.87

125600

1.63

5.EBT

532600

5.83

612400

7.96

Less: Tax

177500

1.94

192100

2.49

6.EAT

355100

3.89

420300

5.46

355100

3.89

420300

5.46

Less: dividend
7.Net Profit

%Change

2007

%Change

Common size Balance sheet for TATA Motors:

Sources of Funds
Equity share capital

2008

%Change

2007

%Change

385.54

2.73

385.41

3.55

Secured loans

2461.99

17.46

2022.04

18.63

Unsecured loans

3818.53

27.09

1987.1

18.3

Reserves & Surplus

7428.45

52.7

6458.39

59.5

14094.51

100

10852.94

100

10426.76

73.97

6368.63

58.68

4910.27

34.83

2477

22.82

-1248.57

-8.85

1997.22

18.4

6.05

4.29

10.09

0.09

14094.51

100

10852.94

100

LOANS FUNDS

Total
Application of funds
Net Fixed assets
Investments
Net working capital(CACL)

Miscellaneous Exp
Total

RATIO ANALYSIS
OF
MAHINDRA & MAHINDRA

RATIO ANALYSIS OF MAHINDRA & MAHINDRA FOR THE

YEAR 2008, 2007

1) Profit Ratio:
(i)Gross Profit Ratio = (gp/net sales)*100
For 2008 = (24063.70/113285.50)*100
=21.24%
2007 = (21424.50/98952.10)*100 =
21.65%
(ii) Net Profit = (Np/net sales)*100
For 2008= (11033.70/113285.10)
*100=9.73%
2007= (10683.90/98952.10) *100 =
10.79%

CONT..

iii) Operating Exp = (operating Exp/ Net

sales)*100
For 2008 = (12449.90/113285.50)*100 =
10.98%
2007= (10106.50/98952.10) * 100=10.21%
(iv)Adjusted net profit= (Adj.NP/Net
sales)*100
For 2008=
(9381.70/113285.50)*100=8.28%
2007= (9655.9/98952.10)*100=9.75%

2) TURNOVER RATIO:

I) Fixed assets Turn over=Net sales/Net Fixed

assets
For 2008=113285.50/23609.00 = 4.79%
2007=98952.10/18711.70=5.28%
ii) Working Capital=Net Sales/W.C
For 2008=113285.50/5464.50 =20.73%
2007 =98952.10/2806.00 =35.26%
iii) Stock Turn over=COGS/Avg.Inventories
For 2008=89221.8/10841.10 = 8.22%;
2007=77527.6/8784.80=8.82%

3) Financial Ratios:

i) Current Ratio=C.A/C.L
For 2008=29645.10/23075.50 =
1.2%
2007 = 9103.00/19502.20=1.4%

RATIO ANALYSIS
OF
TATA MOTORS

RATIO ANALYSIS OF TATA MOTORS:

i) Gross Profit= (gp/net sales)*100

For 2008= (1932400/9126200)*100=21.17%
2007= (1579500/7692000)*100 = 20.53%
ii) Net Profit Ratio= (NP/Net sales)*100
For 2008= (795100/9126200)*100=8.71%
2007= (613300/7692000)*100=12.56%
iii) Operating Exp=(op exp/net sales)*100
For 2008= (1340300/9126200)*100=14.68%
2007= (966200/7692000)*100=12.56%
iv) Return on Investments= (EBITDA/Capital
Employed)*100
Capital employed= Share capital + Reserve + long-term
loan - (non.buss.assets + fictitious assets)
Capital employed for
2008:385.54+7428.45+14094.51=21908.5
2007:385.41+6458.39+10852.94=17696.74
For 2008: (592100/21908.5)*100=2702.60%
2007: (613300/17696.74)*100=3465.61%

v) Return on Share holders: (PAT/share holder fund)*100

Share holder fund=capital employed-debentures;
For 2008=21908.5-0.00=21908.5
2007=17696.74-0.00=17696.74
For 2008 :( 355100/21908.5)*100=1620.83%
2007 :( 420300/17696.74)*100=2375.01%
vi) Return on total assets= (PAT/Net Total assets)*100
Net Total assets=Fixed assets + Current Assets + Investments
For 2008=21053.3; 2007=16650.73
For 2008= (355100/21053.3)*100=1686.67;
2007= (420300/16650.73)*100=2524.21
vii) Earnings per share= (PAT-Preference Dividend)/no. of equity
share
For 2008= ((355100-0)/ 385.54) = 921.04
2007= ((420300-0)/385.41) =1090.52

Turn Over Ratio:

Fixed Turnover Ratio=Net sales/Net

fixed assets
For 2008 :( 9126200/5316.80) =
1716.48;
2007: (7692000/3855.31)=1995.17
ii) Working Capital=Net Sales/W.C
For 2008= (9126200/-1248.57) =7309.32;
2007=
(7692000/1997.22)=3851.35

Financial Ratio:

i) Current Ratio=CA/CL
For 2008= (10781.23/12029.80) =
0.8;
2007= (10318.42/8321.20)=1.2.

For Mahindra & Mahindra

Net Sales increased by 14.48%(from 2007- 2008)

Gross Profit has increased by 12.31%.
Net operating profit has increased by 2.61.
EBIT has decreased by 5.63%.
EBT has decreased by 2.83%.
Net profit increased by 3.27%.
Share capital has been increased by 14.8%
Reserves surplus has been increased by 24.01%.
Loans has been increased by 58.13%
Net fixed assets has been increased by 26.17%
Investments have been increased by 88.38%.
Networking capital has been increased by 1.86%.
Miscellaneous expenditure decreased by 22.9%.

For Tata Motors:

Net sales increased by 18.6 (from 2007-2008).

Gross profit increased by 22.34%.
Net operating profit decreased by 3.45%.
EBIT has been increased by 7.73%.
EBT has been decreased by 13.03%.
Net profit has been decreased by 15.51%.
Share capital increased by 0.033%.
Reserves & surplus increased by 15.02%.
Loans & advances increased by 36.16%.
Net fixed assets increased by63.72%.
Investments increased by 98.2%
Networking capital decreased by 162.5%
Miscellaneous exp increased by 4.04%.

From ratio analysis For M&M.

From the profit ratio:

Gross profit decreased by 0.41%.

Net profit has been decreased by 1.06%.
Operating Expenses increased by 0.77%.
From Turn over Ratio:
Fixed assets decreased by 0.49m
Working capital decreased by 14.53m
Stock turnover decreased by 0.6m.

From Financial ratio:

Current ratio has been decreased

by 0.2m.

Conclusion from ratio analysis For Tata

Motors

From the profit ratio:

1)Gross profit decreased by 0.64%.

2)Net profit has been increased
by 0.74%.
3)Operating Expenses increased
by 2.12%.

From Turn over Ratio:

Fixed assets decreased by

278.69m
Working capital decreased by
3457.97m
Stock turnover decreased by
0.6m.

From Financial ratio:

Current ratio has been decreased by

0.4m

FINAL CONCLUSION:

Net sales to Tata motors (20072008)has 4.12% greater than net

sales of M&M.
M&M has more net profit than Tata
motors from comparing to previous
years.
So Tata motors have more
concentration on increasing net
sales. And M&M has concentrated
on Profit maximization.