1 |Tata Motors- Financial history

Tata Motors Financial

history and Dividend
policy

2 |Tata Motors- Financial history

Contents
TATA MOTORS FINANCIAL HISTORY..............................................................................1
AUTOMOBILE INDUSTRY IN INDIA....................................................................................1
BACKGROUND OF TATA MOTORS.....................................................................................2
Acquisitions....................................................................................................................3
Tata Motors - Product Portfolio............................................................................................3
Tata Motors - 2010 Market Performance.................................................................................4
Tata Motors Technology and Design Subsidiaries.......................................................5
TATA MOTORS DIVIDEND POLICY...................................................................................5
Rights Issue.................................................................................................................6
Rights Issue in 2001.................................................................................................6
Rights Issue in 2008.................................................................................................7
2001- 2002 Crisis........................................................................................................7
2008 - 2009 Crisis.......................................................................................................8
FIGURES.......................................................................................................................10
Figure 1: Dividend and stock price snapshot of Tata Motors of last 10 years........10
Goa Institute of

Figure 2: PAT, Retained

equity dividend snapshot of Tata Motors of
M a n a Earnings
g e m e nand
t
last 10 years..........................................................................................................10
PGP1 2010-11

Figure 3: Vehicle Production in India......................................................................11

EXHIBITS.......................................................................................................................12
Exhibit 1: Dividend payout history of Tata Motors.................................................12

Submitted by:
Exhibit 2: Bonus announcement
of Tata motors........................................12
3 / 2 / 2 0 1history
1
Group 3

Exhibit 3: Ratios.....................................................................................................13
Section C
Exhibit 4: ONW, ROCE, Quick Ratio , Current Ratio and Interest cover of Tata
Alok Jaiswal (2010124)
Motors....................................................................................................................15

Deepika Kaur (2010133)

Exhibit 5: Cash flow................................................................................................15

Dushyant Bhadauria (2010134)

Madhumitha J (2010147)
Exhibit 6: Balance sheet.........................................................................................16

Praveen Trivedi (2010156)

Exhibit 7: Annual results (in brief)..........................................................................17

Exhibit 8: Share holding.........................................................................................18

3 |Tata Motors- Financial history

Exhibit 9: Financial data of Tata motors about earing and dividend per share......19
Exhibit 10: Capital Structure of Tata Motors..........................................................21
REFERENCES.................................................................................................................23
REFERENCES

1 |Tata Motors- Financial history

TATA MOTORS FINANCIAL HISTORY

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.
92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each segment,
and among the top three in passenger vehicles with winning products in the compact, midsize car
and utility vehicle segments. The Company's 24,000 employees are guided by the vision to be "best
in the manner in which we operate, best in the products we deliver and best in our value system and
ethics."
There is great confidence that with the major initiatives undertaken interms of global acquisitions,
product development, new productintroductions and operational synergies, Tata Motors will
achievegrowth and take its place as a respected and viable automobileenterprise in the global
industry with meaningful size and scale in the various segments in which it operates. The progress
which the Company has made would never have been possible without the tremendous support of
our management, our workforce and ourunions. We also appreciate the confidence and loyalty
displayed by ourcustomers, whom we will always strive to serve better. Last, but notleast, we wish
to thank our shareholders for their continued faith andsupport to the Company through good times
and bad. All of this has gonetowards making Tata Motors the company it is today. We would need
thiscontinued support to achieve the goals we have set for Tata Motors in the years ahead.
-- Chairman, Tata Motors, Mumbai, July 16, 2010

AUTOMOBILE INDUSTRY IN INDIA

The Automotive industry in India is one of the largest in the world and one of the fastest growing
globally. India manufactures over 11 million vehicles (including 2 wheeled and 4 wheeled) and
exports about 1.5 million every year. It is the world's second largest manufacturer of motorcycles,
with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle
manufacturing industry is the seventh largest in the world, with an annual production of more than
2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of passenger cars,
behind Japan, South Korea and Thailand.
As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars were sold
in India in 2009 (an increase of 26%), making the country the second fastest growing automobile
market in the world. According to the Society of Indian Automobile Manufacturers, annual car
sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020.

By 2050, the country is expected to top the world in car volumes with approximately 611 million
vehicles on the nation's roads. (See figure 3)
A chunk of India's car manufacturing industry is based in and around the city of Chennai, also
known as the "Detroit of India" [With the Indian city accounting for 60 per cent of the country's
automotive exports]. Gurgaon and Manesar near New Delhi are hubs where all of the Maruti Suzuki
cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular
production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and
Mahindra,Tata Motors, Mercedes Benz, Fiat, Force Motors. Ahmedabad with Tata Motors Nano
plant and Halol with General Motors in Gujarat, Aurangabad in Maharashtra, and Kolkata in West
Bengal are some of the other automotive manufacturing regions around the country.

BACKGROUND OF TATA MOTORS

Tata Motors Limited (Tata Motors) is an automobile company. The Company is engaged mainly in
the business of automobile products consisting of all types of commercial and passenger vehicles,
including financing of the vehicles sold by the Company. The Company has two segments:
automotive and others. The others segment includes construction equipment, engineering solutions
and software operations.
Instigated in the year 1945, Tata Motors has a wide network of retailers and suppliers across India.
It was in 1954 that the company launched its first vehicle. Today more than 3 million Tata cars and
heavy vehicles glide through Indian roads. The company gained the prestige of being the first from
engineering industry of India to be listed under the New York Stock Exchange in September 2004.
Besides being second biggest in the passenger car division, Tata Motors is also ranked as fifth
highest in the category of medium and heavy commercial vehicles at international level.With the
help of its associates, Tata Motors offer high end manufacturing and automotive solutions to its
customers. It's foremost indigenously made car was Tata Indica, followed by a mini-truck Tata Ace
in 2005. In the year 2009, the firm marked its name in the pages of automotive history by
introducing the world's fuel efficient and cheapest car - Tata Nano.

Acquisitions
Tata Motors, the first Company from India's engineering sector to be listed in the New York Stock
Exchange (September 2004), has also emerged as an international automobile company.Tata
Motors has operations in the United Kingdom, South Korea, Thailand and Spain. In 2004 Tata
Motors acquired Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial
Vehicle, in South Korea.In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera
giving it controlling rights of the company. Then in 2007, Tata Motors formed a joint venture with
Marcopolo of Brazil and introduced low-floor buses in the Indian Market. The biggest acquisitions
happened in 2008, when Tata Motors acquired British Jaguar Land Rover (JLR), which includes the
Daimler and Lanchester brand names.On October 16, 2009, the Company has acquired 79% shares
in Tata Hispano Motors Carrocera S.A. by way of exercise of the existing call option, through
mutual agreement with the other share-holder, Investalia S.A., Spain. Consequently, Tata Hispano
Motors Carrocera S.A. has become a 100% subsidiary of the Company.In 2010, Tata Motors
acquired 80% stake in Italy-based design and engineering company Trilix for a consideration of
1.85 million. The acquisition is in line with the companys objective to enhance its styling/design
capabilities to global standards.

Tata Motors - Product Portfolio

Tata Indica - First locally made passenger car, Tata Indica is a compact rear door car that attracted
the attention of the people within the months of its launch. Spacious, comfortable and reasonably
priced, Indica is perfect for Indian roads and families.Tata Sumo Victa - Introduced in 2004, Tata
Sumo Victa is an MUV equipped with spacious interiors, burly appeal and an exclusively designed
cockpit. With 4.9m of rotating radius, coercing Victa through packed Indian roads is never an
issue.Indica V2 Xeta - Designed for urban Indian middle class it boasts of its competitive cost and
functionality. At the hatch back it can comfortable hold three people and two in the front seat.Tata
Indigo - India's first luxury sedan, Tata Indigo is equipped with hi-tech features and stylish design.
Competitively valued, the car is highly admired by Indian customers.Tata Indigo Marina - Tata
Indigo Marina is the station car adaptation of their renowned model Indica and takes pride of its
opulence, roomy interiors that of an MUV and superb performance.Tata Safari - Perfect for off-road
drive, Tata Safari is Tata motors first sports utility vehicle (SUV). Adorned with powerful engine,
sporty appeal and excellent performance, Safari is preferred by Indian car enthusiasts.Tata Indigo

SX - Introduced in the year 2005, Tata Indigo SX is renowned for its chic and panache. It is widely
admired by the end users and keeping the Indian roads in mind.Tata Motorslatest launches areTata
Manza, Tata Land Rover, Tata Jaguar, Indica Vista, Tata Indica Dicor.
Table 1: Major Policy Initiatives for the Automotive Industry after 1991

Tata Motors - 2010 Market Performance

The FY 2009-10 witnessed the highest sale of Tata Motors vehicles registering at 642,686 units. In
March 2010, Tata Motors' total sales were recorded at 75,151 against 54,452 units vended in March
2009.Collective sales of Tata Motors commercial vehicles in the Indian market for 2010 are
373,615 units. The company registered a growth of 41% considering its previous year's sales while
the collective sales of Tata Motors passenger vehicles for 2010 are 234,930 units and are estimated

the highest ever for the firm.The firm's trade from exports for March 2010 was at 4,105 units
against 1,799 units in the previous fiscal.

Tata Motors Technology and Design Subsidiaries

Tata Motors has dozens of technology and design subsidiaries. These include the main ones.Telco
Construction Equipment (TELCON) - TELCON is a joint venture between Tata Motors and
Hitachi, which focuses on excavators and other construction equipment.HV Transmission (HVTL)
and HV Axles (HVAL) - HVAL and HVTL are 85% subsidiary companies of Tata Motors engaged
in the business of manufacture of gear boxes and axles for heavy and medium commercial vehicles,
with production facilities and infrastructure based at Jamshedpur.
Tata Technologies Limited (TTL) - TTL provides Engineering and Design (E&D) solutions to the
Automotive Industry. Tata Motors holds 86.91% of TTLs share capital. TTL is based in Pune
(Hinjawadi) and operates in the US and Europe through its wholly owned subsidiaries in Detroit
and London respectively. It also has a presence in Thailand. It bought over the British engineering
and design services company, Incat International Plc for Rs 4 billion in August 2005. Incat
specializes in engineering & design services and product lifecycle management in the international
automotive, aerospace and engineering markets. With this acquisition, Tata Motors will have closer
proximity to its global customers and be able to provide a wider range of services.Tata Motor
European Technical Centre - Tata Motor European Technical Centre is Tata's subsidiary based in
the UK. It was the joint developer of the World Truck.

TATA MOTORS DIVIDEND POLICY

TATA motors has a very balanced dividend policy since 1955 (Exhibit 1&9). In all, but two years
the company has paid a healthy dividend. Dividend smoothing has enabled the company so pay
dividend even at the cost of negative retained earnings. Despite being a growth company expanding
in new sectors the company has continued to strike a balance between retained earnings and
dividend payouts. In times when the company has been in crisis they have looked at others
measures of satisfying the needs for liquidity for shareholders like issue of Bonus shares.
Automobile market is cyclic and the effect can be seen in the earnings of TML as well. Whenever
the profits of the company have exceeded expectations, the company has declared an interim

dividend while continuing with the existing payout ratio for regular dividends. Outside India the
company is also listed on the NYSE. The dividend policy of TML has helped build a special
relationship with retail customers who comprise more than 7 percent of the shareholders.

Rights Issue
A rights issue is a way in which a company can sell new shares in order to raise capital. Shares are
offered to existing shareholders in proportion to their current shareholding, respecting their preemption rights. The price at which the shares are offered is usually at a discount to the current share
price, which gives investors an incentive to buy the new shares if they do not, the value of their
holding is diluted.
A rights issue by a highly geared company intended to strengthen its balance sheet is often a bad
sign. Profits are already low (or negative) and future profits are diluted. Unless the underlying
business is improved, changing its capital structure achieves little.A rights issue to fund expansion
can usually be regarded somewhat more optimistically, although, as with acquisitions, shareholders
should be suspicious because management may be empire-building at their expense (the
usual agency problem with expansion).The rights are normally a tradable security themselves (a
type of short dated warrant). This allows shareholders who do not wish to purchase new shares to
sell the rights to someone who does. Whoever holds a right can choose to buy a new share
(exercise the right) by a certain date at a set price.
Rights Issue in 2001
The Board of Directors of approved the simultaneous Issue of Convertible Debentures and NonConvertible Debentures with Detachable Warrants on a rights basis in the ratio of one CD and one
NCD for every five shares (1:5) of the Company held. The Company expected to raise
approximately Rs. 1,228 crores - Rs.1,382 crores from the proposed rights issue. The proceeds of
the rights issue was planned to be used for essential capital expenditure and new product
development programs and repayment/ prepayment of expensive borrowings of the Company. The
infusion of long term funds, by way of this rights issue, was expected improve the cash flows and
the debt equity ratio.
Rights Issue in 2008
In May 2008 the company announced its long term financing plan for Jaguar-Land Rover
acquisition. At that time, the Company had announced that a part of the total funds required would

be raised through a Rights Issue to the shareholders of three simultaneous but unlinked securities
namelya) an issue of Ordinary Shares of a total amount of about Rs.2,200 crores;b) an issue of A
Ordinary Shares having differential voting rights (viz. 1 vote for every 10 shares held) of a total
amount of about Rs.2,000 crores andc) an issue of 0.5% 5-year Convertible Preference Shares of a
total amount of about Rs.3,000 crores, which would be convertible into A Ordinary Shares at any
time after 3 years but before 5 years from the date of allotment.
Changes in Capital Market and the level of prices in the stock markets led the Board of Directors to
decide to keep the increase in Share Capital as low as possible, the Board decided 1.To restrict the Rights Issue only to two simultaneous but unlinked securities namely (a) an issue
of Ordinary Shares and (b) an issue of A Ordinary Shares having differential voting rights, as
already announced; and2. In place of the issue of Convertible Preference Shares, it is now proposed
to raise the required resources by monetizing a part of the Companys investments through a phased
divestment of certain investments (preferably as inter-group sales wherever feasible) at prevailing
market prices over the next 6 to 8 months. The funds released from such future divestments
together with those already sold during the current financial year, will form part of the resources to
be raised for repaying the bridging loan taken for the Jaguar-Land Rover acquisition.

2001- 2002 Crisis

Ten years ago, after a decade of strong revenue and margin growth, Tata Motors plunged into an
crisis when the demand for its trucks suddenly collapsed. The lost sales compounded by heavy
investment for its entry into the passenger car business, the cost of complying with new emissions
standards, and an increasing threat from overseas competitors caused Tata Motors to shock the
markets with a loss of Rs. 500 crores for the fiscal year ending March 2001. During this period for
the first time since 1956 Tata motors didn't declare a dividend. Average share price of TML
dropped from Rs. 217 in 1999-2000 to Rs. 102 in 2001-02.
Over the next two years, the company shaved around 8 billion rupees from its cost base and nursed
itself back to corporate health. The company count not show positive figures for PAT in 2001-02
and didn't declare a dividend in that year. Average share prices fell to Rs 90 in 2001-02Today Tata
Motors ranks as the world's fifth-largest manufacturer of medium and heavy trucks. Even while
keeping a tight grip on costs, Tata Motors moved to the offensive by refocusing its investments on
less cyclical products, including light commercial vehicles, buses, and spare parts; making a

successful entry into passenger cars; and responding to opportunities presented by favourable social
and economic trends.

2008 - 2009 Crisis

TMs originalcore business in the passenger car division (small cars in India) was mildly influenced
by the crisis as TMspassenger car sales decreased by only 5%. The company was much more
negatively affected by thedecline in sales of its commercial vehicle division which represented
not yet taking into account the JLRacquisition some 2/3 of its turnover. However, the financial
crisis had a much more serious impact [inthe last quarter of 2008 and the first quarters of 2009]
because of the burden of two major strategicinitiatives. The shift of the production site and
postponement of the full Nano launch which wasoriginally scheduled for launch in March 2008 by
two years led to unexpected resource needs (newmanufacturing site) and a shortfall of otherwise
expected 2008-09 revenues. While this burden was notcaused or much exacerbated by the crisis in
the global car industry, the acquisition of JLR only fewmonths before the onset of the crisis actually
affected TM much more: the dramatic decrease in JLRs
sales (JLR being fully exposed to European and US markets) significantly increased the heavy
losses of thenew combined company in FY 2008/09; even more importantly, the refinancing of the
short termbridging loan of $ 3 billion for the acquisition became much more complicated and costly
in a situation ofdried up capital markets. The refinancing difficulties and increasing financing cost
contributed to aserious debt overload of TM which might have led to bankruptcy (and a take-over)
if the TM would havebeen a stand-alone company and would not have been protected and
supported by its affiliation to theTata group and its well-connected chairman.
While it is no surprise that the crisis caused (temporary) problems and challenges for TMs business
itseems much more remarkable how little effect it had on the companys strategy. TM steered
throughthe crisis without much change in its path-changing (Nano) as well as its path-breaking
(JLR) strategyinitiatives.
The constancy of purpose as well as a continuous and consistent execution of strategic planswas
maintained despite highly skeptical capital market markets which had temporarily
withdrawnsupport from TM. The unwavering pursuit of a transformational strategy of TM in the
face of thefinancial crisis can be ultimately explained only by the affiliation of the company to a
very strong andsupportive conglomerate with a particular mode of operation: TM is one of the few

strategiccompanies of the Tata group; it is guided personally by the Chairman of the Tata Group
who hascommitted the group to a course of globalization and innovation while relying on Indias
comparativelocation advantages; it allows the company to sustain long periods of low profitability
and significantinvestments in resource and capability accumulation; TM profits from the value and
attraction of theTATA brand in its dealings with suppliers, customers and the Government, as well
as in attracting
talented staff; it also profits from various group support services like the groups excellence model,
itsacquisition and finance expertise and its training efforts. This inherent affiliation strength
enabled TMto even use the crisis as an accelerator for the implementation of its strategies by
legitimizing a moreswift course towards cost cutting in the JLR operations (announced closure of
one plant and shift ofsignificant supply sources to India). It may also have facilitated the farreaching changes in TMs topmanagement as experienced top managers were available due to the
crisis and a change of topmanagement seemed to be justified in view of TMs difficulties and
temporary low performance. It cantherefore be concluded that the financial crisis has not much
affected TMs transformational changeor even reinforced and accelerated it.

FIGURES

Figure 1: Dividend and stock price snapshot of Tata Motors of last 10 years

Figure 2: PAT, Retained Earnings and equity dividend snapshot of Tata Motors of last
10 years

Figure 3: Vehicle Production in India

EXHIBITS

Exhibit 1: Dividend payout history of Tata Motors

Dividend
(%)
150

Year

Month

2010

May

2009

May

60

2008

May

150

2007

May

150

2006

May

130

2005

May

125

2004

May

40

2004

Jan

40

2003

May

40

2002

Jun

2001

Jun

2000

May

25

1999

May

30

1998

Jun

55

1997

May

80

Exhibit 2: Bonus announcement history of Tata motors

Year

Month

Ratio

Ex-Bonus Date

1995

Sep

3:05

4/10/1995

1982

Apr

2:05

1979

Apr

2:05

1977

Apr

1:05

Exhibit 3: Ratios
Mar ' 10

Per share ratios

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Adjusted EPS (Rs)

24.91

17.93

42.91

43.76

Adjusted cash EPS (Rs)

45.56

Reported EPS (Rs)

39.26

Reported cash EPS (Rs)

35.94

61.5

61.18

51.1

19.48

52.63

49.65

39.94

59.91

37.49

71.22

67.07

55.47

15

15

15

13

70.68

33.52

78.61

67.12

56.06

Book value (excl rev res) per share (Rs)

259.03

240.6

202.54

177.33

143.58

Book value (incl rev res) per share (Rs.)

259.46

241.09

203.2

178

144.26

Net operating income per share (Rs)

619.98

499.23

746.24

691.91

524.73

Free reserves per share (Rs)

229.67

217.77

182.38

157.16

123.34

Operating margin (%)

11.4

6.71

10.53

9.7

10.68

Gross profit margin (%)

8.47

3.3

8.26

7.5

8.09

Net profit margin (%)

6.26

3.77

6.96

6.94

7.35

Adjusted cash margin (%)

7.26

6.97

8.13

8.55

9.41

Adjusted return on net worth (%)

9.61

7.45

21.18

24.67

24.77

Reported return on net worth (%)

15.15

8.09

25.98

28

27.81

Return on long term funds (%)

12.26

8.89

22.85

31.18

28.65

Long term debt / Equity

0.79

0.49

0.49

0.31

0.41

Total debt/equity

1.12

1.06

0.8

0.58

0.53

47.05

48.44

55.43

63.05

65.23

1.95

1.88

2.69

3.08

2.55

Current ratio

0.62

0.84

0.89

1.24

1.24

Current ratio (inc.st loans)

0.44

0.43

0.64

0.85

1.07

Quick ratio

0.43

0.58

0.66

0.91

0.96

Inventory turnover ratio

13.5

13.47

14.44

13.26

12.63

Dividend payout ratio (net profit)

44.28

34.52

32.51

35.34

37.13

Dividend payout ratio (cash profit)

29.02

17.94

24.02

26.16

26.73

Earning retention ratio

30.22

62.49

60.13

59.9

58.31

Cash earnings retention ratio

61.84

81.29

72.18

71.32

70.98

Dividend per share

Operating profit per share (Rs)

35.57

Profitability ratios

Leverage ratios

Owners fund as % of total source

Fixed assets turnover ratio

Liquidity ratios

Payout ratios

Coverage ratios
Adjusted cash flow time total debt

6.4

7.13

2.65

1.7

1.5

Financial charges coverage ratio

3.56

3.64

7.19

7.62

8.08

Fin. charges cov. ratio (post tax)

3.74

3.73

6.82

6.67

7.06

Material cost component (% earnings)

71.7

73.26

72.62

74.55

72.84

Selling cost Component

4.47

4.77

4.09

3.78

Exports as percent of total sales

8.61

9.49

9.88

10.18

11.87

Import comp. in raw mat. consumed

5.94

5.82

4.6

3.88

4.64

Long term assets / total Assets

0.75

0.71

0.58

0.45

0.39

Bonus component in equity capital (%)

19.5

21.64

28.86

28.87

29.06

Component ratios

All income figures are in Rs crore.

Exhibit 4: ONW, ROCE, Quick Ratio , Current Ratio

Motors
Annu Annu
Annual
Annual
Annual
al
al
yyyymm (%)
(%)
(%)
(%)
Finance
PBD
PAT net of
RO
RO
year
ITA/
P&E
NW
CE

and Interest cover of Tata

Annual
Times
Quick
ratio

Annual
Times
Curre
nt ratio

Annual
Times
Intere
st cover

Total
income

/Total income
net of P&E

1991

14.36

5.51

26.67

1992
1993
1994

12.99
11.02
11.65

4.27
1.21
2.38

20.45
4.94
11.04

1995

13.47

5.68

28.46

1996

13.9

6.82

27.91

1997
1998
1999
2000

14.86
14.06
13.61
11.36

7.43
3.99
-1.01
-0.76

2001
2002
2003
2004
2005

5.9
8.74
10.05
11.35
10.41

-5.81
-2.01
2.53
5.27
5.98

24.67
8.02
-1.78
-1.81
13.57
-6.23
10.86
26.56
32.15

2006

11.11

6.22

31.43

2007

10.45

5.76

29.82

2008
2009
2010

10.37
8.8
11.97

5.85
3.11
5.53

26.9
9.26
16.33

17.8
6
12.5
4
2.52
5.17
16.3
9
21.4
3
19.9
1
6.03
-1.27
-1.31
-9.71
-4.11
7.08
19.4
22
21.1
6
22.0
6
19.0
9
6
9.52

0.61

1.21

3.87

0.64
0.69
0.79

1.24
1.31
1.34

2.52
1.16
1.37

0.64

1.18

3.41

0.54

1.02

5.14

0.85
0.79
0.53
0.43

1.31
1.24
0.84
0.86

4.64
1.77
0.89
0.88

0.35
0.28
0.39
0.35
0.47

0.8
0.76
0.76
0.62
0.74

0.05
0.55
3.16
14.71
21.75

0.3

0.64

16.52

0.23

0.56

12.71

0.33
0.22
0.29

0.59
0.41
0.48

9.66
2.25
3.84

Exhibit 5: Cash flow

Rs. Crore
Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Profit before tax

2,240.08

1,001.26

2,028.92

1,913.46

1,528.88

Net cash flow-operating activity

6,586.03

1,295.02

6,174.50

2,210.13

-221.03

-11,848.29

-10,644.67

-5,721.86

-2,805.10

-1.06

5,348.49

8,104.70

1,132.46

303.58

-855.27

Net inc/dec in cash and equivalent

86.23

-1,244.95

1,585.10

-291.39

-1,077.36

Cash and equivalent begin of year

630.04

2,386.77

806.21

1,118.15

2,196.79

Net cash used in investing activity

Net cash used in fin. activity

Cash and equivalent end of year

716.27

1,141.82

2,391.31

826.76

1,119.43

Exhibit 6: Balance sheet

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

570.6
14,208.55

514.05
11,855.15

385.54
7,428.45

385.41
6,458.39

382.87
5,127.81

7,742.60
8,883.31
31,405.06

5,251.65
7,913.91
25,534.76

2,461.99
3,818.53
14,094.51

2,022.04
1,987.10
10,852.94

822.76
2,114.08
8,447.52

18,416.81
24.63
7,212.92
11,179.26
5,232.15
22,336.90

13,905.17
25.07
6,259.90
7,620.20
6,954.04
12,968.13

10,830.83
25.51
5,443.52
5,361.80
5,064.96
4,910.27

8,775.80
25.95
4,894.54
3,855.31
2,513.32
2,477.00

7,971.55
26.39
4,401.51
3,543.65
951.19
2,015.15

12,329.48
19,672.73
-7,343.25
31,405.06

10,836.58
12,846.21
-2,009.63
2.02
25,534.76

10,781.23
12,029.80
-1,248.57
6.05
14,094.51

10,318.42
8,321.20
1,997.22
10.09
10,852.94

9,812.06
7,888.65
1,923.41
14.12
8,447.52

21,991.93
345.53
3,708.33
5705.58

12,358.84
558.32
5,433.07
5140.08

4,145.82
2,530.55
5,590.83
3855.04

2,117.86
1,323.08
5,196.07
3853.74

1,648.57
1,550.00
2,185.63
3828.34

Sources of funds (Rs. Crore)

Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus

Loan funds
Secured loans
Unsecured loans
Total

Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated depreciation
Net block
Capital work-in-progress
Investments

Net current assets

Current assets, loans & advances
Less : current liabilities & provisions
Total net current assets
Miscellaneous expenses not written
Total

Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
Number of equity sharesoutstanding (Lacs)

Exhibit 7: Annual results

(in brief)

(Rs crore)
Mar ' 10

Mar ' 09

Mar ' 07

Mar ' 06

Mar ' 05

35,593.05

25,660.79

31,884.69

24,004.12

20,482.57

Operating profit

4,034.25

1,701.27

3,228.70

2,505.91

2,103.97

Interest

1,103.84

673.68

313.07

226.35

154.15

Gross profit

4,783.86

1,953.56

3,160.82

2,568.67

2,115.91

39.26

19.48

49.65

39.93

34.19

Mar ' 10

Mar ' 09

Mar ' 07

Mar ' 06

Mar ' 05

1,853.45

925.97

245.19

289.11

166.09

-606.63

238.04

-349.68

-256.91

-144

20,392.60

16,218.62

19,374.93

14,263.86

11,929.48

1,836.13

1,551.39

1,367.83

1,143.13

1,039.34

Excise

4,349.45

3,401.92

3,063.44

Admin and selling expenses

Research and development expenses

-740.54

-916.02

10,677.24

6,867.49

3,913.46

2,946.21

2,490.34

1,033.87

874.54

586.29

520.94

450.16

589.46

12.5

659.72

524.5

414.95

2,240.08

1,001.26

1,913.46

1,528.88

1,236.95

-920.45

-65.26

-1.35

5.65

-13.85

Sales

EPS (Rs)

(in details)
Other income
Stock adjustment
Raw material
Power and fuel
Employee expenses

Expenses capitalised
Other expenses
Provisions made
Depreciation
Taxation
Net profit / loss
Extra-ordinary item
Prior year adjustments

570.6

514.05

385.41

382.87

361.79

2587.71

2031.75

2142.52

2539.98

2447.18

Agg.of non promotoion Holding (%)

51.11

45.17

55.6

66.35

67.65

OPM (%)

11.33

6.63

10.13

10.44

10.27

GPM (%)

12.78

7.35

9.84

10.57

10.25

NPM (%)

5.98

3.77

5.96

6.29

5.99

Equity capital
Equity dividend rate
Agg.of non-prom. shares (Lacs)

Exhibit 8: Share
holding
Share holding pattern as on :
Face value
No. Of
Shares

31/12/2010

30/09/2010

30/06/2010

10

10

10

% Holding

No. Of Shares

% Holding

No. Of
Shares

% Holding

Promoter's holding
Indian Promoters

187491741

34.93

187473186

37.02

187450911

37.02

Sub total

187491741

34.93

187473186

37.02

187450911

37.02

Non promoter's holding

Institutional investors
Banks Fin. Inst. and Insurance

64052619

11.93

70596628

13.94

78760987

15.55

FII's

130000160

24.22

119470169

23.59

113303189

22.38

Sub total

203356630

37.89

208272758

41.13

205828260

40.65

Other investors
Private Corporate Bodies

2241489

0.42

3271047

0.65

3659280

0.72

NRI's/OCB's/Foreign Others

4104697

0.76

5151215

1.02

5728469

1.13

Direcctors/Employees

236222

0.04

239972

0.05

Govt

407181

0.08

407181

0.08

407181

0.08

Others

1543523

0.29

61326243

12.11

60879708

12.02

Sub total

8533112

1.59

70155686

13.85

70914610

14

39497336

7.36

40479846

7.99

42187575

8.33

438878819

81.77

506381476

100

506381356

100

General public
Grand total

Exhibit 9: Financial data of Tata motors about earing and dividend per share
Profit/
(loss)
Before
Taxes

year
1945-46
1949-50
1953-54
1954-55
1955-56
1956-57
1957-58
1958-59
1959-60
1960-61
1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94

Gross
Block
31
233
731
792
1010
1352
1675
2050
2201
2593
2954
3281
3920
4789
5432
6841
7697
8584
9242
10060
10931
12227
13497
15838
18642
20709
22430
24900
28405
33055
38819
43191
46838
52819
61943
68352
75712
83455
91488
100894
123100
153612
177824

Depreciatio
n
2
44
270
303
407
474
668
780
940
1118
1336
1550
1802
2144
2540
3039
3608
4236
4886
5620
6487
7491
8471
9593
10625
11685
12723
13895
15099
16496
18244
20219
23078
26826
29030
30914
34620
38460
43070
48219
54609
61710
70285

Net
block
29
189
461
489
603
878
1007
1270
1261
1475
1618
1731
2118
2645
2892
3802
4089
4348
4356
4440
4444
4736
5026
6245
8017
9024
9707
11005
13306
16559
20575
22972
23760
25993
32913
37438
41092
44995
48418
52675
68491
91902
107539

1994-95

217084

81595

135489

45141

1995-96
1996-97

294239
385116

96980
117009

197259
268107

76072
100046

1
11
3
0
125
116
99
155
222
313
378
327
404
479
477
620
395
582
274
673
885
832
1007
677
855
1056
1044
1514
1762
2437
4188
3481
2163
2703
1832
293
3205
8513
14829
23455
20884
3030
10195

Taxe
s
0
5
0
0
32
27
6
13
93
122
188
185
200
208
189
192
66
173
0
270
379
360
450
136
91
0
0
0
0
0
0
460
235
390
215
0
510
1510
4575
9250
7800
26
20
1324
6
2307
0
2381

Profit/
(loss)
After
Taxes

Net
worth
Per
share*

1
6
3
0
93
89
93
142
129
191
190
142
204
271
288
428
329
409
274
403
506
472
557
541
764
1056
1044
1514
1762
2437
4188
3021
1928
2313
1617
293
2695
7003
10254
14205
13084
3004
10175

Dividen
d
includin
g tax
0
0
0
0
59
44
52
56
108
126
124
124
144
157
191
235
235
235
221
251
273
266
180
266
276
323
313
467
605
605
839
827
923
1241
1243
552
1356
2444
3126
4154
4389
3642
5020

PAT
to
sales
8.30%
3.60%
0.90%
0.00%
7.80%
4.10%
3.50%
5.40%
4.60%
5.10%
4.60%
3.30%
4.00%
4.10%
3.60%
4.70%
3.50%
3.90%
2.80%
3.00%
3.20%
3.00%
3.40%
2.40%
2.80%
3.70%
3.70%
4.00%
3.90%
4.00%
5.30%
3.50%
2.30%
2.50%
1.60%
0.20%
1.90%
4.20%
5.20%
5.50%
4.10%
1.00%
2.70%

Earnings
Per Share
(Basic)*
Rs.
0.07
0.03
0.11
0
1.32
1.64
1.72
1.68
1.5
2.26
2.28
1.68
1.97
2.39
2.2
2.8
2.1
2.66
1.72
2.49
3.04
2.87
3.43
3.32
4.6
5.38
5.37
5.36
5.96
8.27
10.18
7.34
3.61
4.32
3
0.51
4.25
6.74
9.87
13.69
12.45
2.47
7.91

Divide
nd Per
Share
RS.
0.6
0.8
0.9
0.9
1.25
1.45
1.45
1.45
1.45
1.45
1.45
1.45+
1.45
1.45
1.35
1.45
1.5
1.5
0.93
1.5
1.5
1.50+
1.5
1.60+
2
2
2.00+
2
2
2.3
2.3
1
2.3
2.5
3
4
4
3
4

31895

8068

5.60%

23.29

104

53002
76236

14300
22067

6.70%
7.50%

21.92
30.4

6
8

100
143

(RS.)
10
10
11
11
12
13
12
12
13
14
15
15
16
17
18
17
18
19
19
20
23
24
26
28
33
30
35
27
31
38
35$
40
37@
39
41
40
38@
40@
47
56
67@
63
65

1997-98

487073

141899

345174

32880

3414

29466

15484

1998-99

569865

165334

404531

10716

970

9746

8520

1999-00
2000-01
2001-02

581233
591427
591006

182818
209067
243172

398415
382360
347834

7520
-50034
-10921

7120
-50034
-5373

7803
0
0

2002-03

608114

271307

336807

51037

30011

14430

2003-04

627149

302369

324780

129234

81034

31825

2004-05

715079

345428

369651

165190

123695

51715

2005-06

892274
112891
2
158957
9
208520
6
236489
6

440151

452123

205338

152888

56778

489454

639458

257318

191346

67639

544352

1045227

257647

400
0
-5548
2102
6
4820
0
4149
5
5245
0
6597
2
5475
5

202892

65968

625990

1459216

101376

100126

34570

721292

1643604

282954

224008

99194

2008-09
2009-10

Taxe
s

Dividend

year

2007-08

Net
block

Profit/
(loss)
After
Taxes

Gross
Block

2006-07

Depreciatio
n

Profit/
(loss)
Before
Taxes

1250
5894
6

includin
g tax

PAT
to
sales
4.00
%
1.50
%
0.80
%
2.80
%
5.20
%
6.00
%
6.30
%
6.00
%
6.00
%
3.40
%
5.60
%

Earnings
Per Share
(Basic)*
Rs.

Dividen
d Per
Share
RS.

Net
worth
Per
share*
(RS.)

11.51

5.5

147

3.81

147

2.78
-18.45
-1.98

2.5
-

147
127
77@

9.38

81

24.68

102@

34.38

12.50!

114@

40.57

13

145@

49.76

15

178@

52.64

15

203@

22.7

238++

42.37

15

262^

Notes :
@ On increased capital base due to conversion of Bonds / Convertible Debentures / Warrants / FCCN into shares.
$ On increased capital base due to issue of Bonus Shares. Net Worth excludes ordinary dividends.
* Equivalent to a face value of Rs.10/- per share.
# Includes Interim Dividend where applicable.
=+ Including on Bonus Shares issued during the year.
! Includes a special dividend of Rs. 2.50 per share for the Diamond Jubilee Year.
=++ on increased capital base due to Rights issue and conversion of FCCN into shares.
^ On increased capital base due to GDS issue and conversion of FCCN into shares.

Exhibit 10: Capital Structure of Tata Motors

From Year

To
Year

Class Of
Share

Authorized
Capital

Issued
Capital

Paid Up
Shares
(Nos)

Paid Up
Face
Value

Paid Up
Capital

2009

2010

Equity Share

900

570.56

570557544

10

570.56

2008

2009

Equity Share

900

514.01

514008314

10

514.01

2007

2008

Equity Share

450

385.5

385503954

10

385.5

2006

2007

Equity Share

450

385.37

385373885

10

385.37

2005

2006

Equity Share

410

382.83

382834131

10

382.83

2004

2005

Equity Share

400

361.75

361751751

10

361.75

2003

2004

Equity Share

400

352.96

352958130

10

352.96

2002

2003

Equity Share

350

319.89

319784387

10

319.78

2001

2002

Equity Share

350

319.89

319782395

10

319.78

2000

2001

Equity Share

350

255.92

255856343

10

255.86

1999

2000

Equity Share

300

255.92

255856343

10

255.86

1998

1999

Equity Share

300

255.92

255856832

10

255.86

1996

1998

Equity Share

300

255.92

255920932

10

255.92

1995

1996

Equity Share

300

241.89

241884646

10

241.88

1994

1995

Equity Share

200

137.06

137062019

10

137.06

1993

1994

Equity Share

200

128.84

128844214

10

128.84

1992

1993

Equity Share

145.5

139.61

114453700

10

114.45

1992

1993

Equity Share

145.5

139.61

14372540

10.78

1991

1992

Equity Share

145.5

117.47

106437808

10

106.44

1991

1992

Equity Share

145.5

117.47

22059800

11.03

1990

1991

Equity Share

145.5

103.67

103673600

10

103.67

1989

1990

Equity Share

145.5

103.67

103673600

10

103.67

1987

1989

Equity Share

145.5

103.67

10366501

100

103.67

1983

1984

Equity Share

55.5

52.87

5286732

100

52.87

1982

1983

Equity Share

55.5

40.92

4092197

100

40.92

1981

1982

Equity Share

55.5

40.92

4092197

100

40.92

1978

1979

Equity Share

3.55

2.92

2922998

10

2.92

1977

1978

Equity Share

25.5

18.9

1889856

100

18.9

1975

1977

Equity Share

17.5

15.75

1574880

100

15.75

1971

1974

Equity Share

17.5

15.11

1510915

100

15.11

1967

1971

Equity Share

15.05

14.35

1434928

100

14.35

1966

1967

Equity Share

13

12.3

1229630

100

12.3

1965

1966

Equity Share

13

12

1199582

100

12

1963

1965

Equity Share

13

12

999935

100

10

1962

1963

Equity Share

13

10

799993

100

1959

1962

Equity Share

799538

100

1955

1957

Equity Share

500000

100

1950

1955

Equity Share

300000

100

1948

1950

Equity Share

200000

100

1945

1948

Equity Share

20000

1,000

*All values are in Rs. Crore

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release=27953
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24.http://www.tatamotors.com/investors/pdf/FinancialStatistics-10.pdf

25.http://moneyterms.co.uk/rights-issue/
26.http://www.theglobalmarketer.com/marketingpulse/marketingpulse.jsp?id=140&page=1
27.http://www.moneycontrol.com/annual-report/tatamotors/chairmans-speech/TM03