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
M a n a Earnings
g e m e nand t equity dividend snapshot of Tata Motors of
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
Exhibit 2: Bonus announcement Submitted by:
3 / 2 / 2 0 1history
1 of Tata motors........................................12
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 company’s 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 Motors’latest 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 TTL’s 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 pre-
emption 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 Non-
Convertible 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 Company’s 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

TM’s originalcore business in the passenger car division (small cars in India) was mildly influenced
by the crisis as TM’spassenger 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 JLR’s
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 TM’s business
itseems much more remarkable how little effect it had on the company’s 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
‘strategic’companies 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 India’s
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 far-
reaching changes in TM’s topmanagement as experienced top managers were available due to the
crisis and a change of topmanagement seemed to be justified in view of TM’s 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
Year Month
(%)
2010 May 150
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 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Per share ratios
Adjusted EPS (Rs) 24.91 17.93 42.91 43.76 35.57

Adjusted cash EPS (Rs) 45.56 35.94 61.5 61.18 51.1

Reported EPS (Rs) 39.26 19.48 52.63 49.65 39.94

Reported cash EPS (Rs) 59.91 37.49 71.22 67.07 55.47

Dividend per share 15 6 15 15 13

Operating profit per share (Rs) 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
Profitability ratios
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
Leverage ratios
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

Owners fund as % of total source 47.05 48.44 55.43 63.05 65.23

Fixed assets turnover ratio 1.95 1.88 2.69 3.08 2.55

Liquidity ratios
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
Payout ratios

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

 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
Component ratios

Material cost component (% earnings) 71.7 73.26 72.62 74.55 72.84

Selling cost Component 4.47 4.77 4.09 4 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
All income figures are in Rs crore.

Exhibit 4: ONW, ROCE, Quick Ratio , Current Ratio and Interest cover of Tata
Motors
Annu Annu
Annual Annual Annual al al Annual Annual Annual
yyyymm (%) (%) (%) (%) Times Times Times
Finance PBD PAT net of RO RO Quick Curre Intere
year ITA/ P&E NW CE ratio nt ratio st cover
 Total /Total income
income net of P&E
17.8
1991 14.36 5.51 26.67 6 0.61 1.21 3.87
12.5
1992 12.99 4.27 20.45 4 0.64 1.24 2.52
1993 11.02 1.21 4.94 2.52 0.69 1.31 1.16
1994 11.65 2.38 11.04 5.17 0.79 1.34 1.37
16.3
1995 13.47 5.68 28.46 9 0.64 1.18 3.41
21.4
1996 13.9 6.82 27.91 3 0.54 1.02 5.14
19.9
1997 14.86 7.43 24.67 1 0.85 1.31 4.64
1998 14.06 3.99 8.02 6.03 0.79 1.24 1.77
1999 13.61 -1.01 -1.78 -1.27 0.53 0.84 0.89
2000 11.36 -0.76 -1.81 -1.31 0.43 0.86 0.88
-
2001 5.9 -5.81 13.57 -9.71 0.35 0.8 0.05
2002 8.74 -2.01 -6.23 -4.11 0.28 0.76 0.55
2003 10.05 2.53 10.86 7.08 0.39 0.76 3.16
2004 11.35 5.27 26.56 19.4 0.35 0.62 14.71
2005 10.41 5.98 32.15 22 0.47 0.74 21.75
21.1
2006 11.11 6.22 31.43 6 0.3 0.64 16.52
22.0
2007 10.45 5.76 29.82 6 0.23 0.56 12.71
19.0
2008 10.37 5.85 26.9 9 0.33 0.59 9.66
2009 8.8 3.11 9.26 6 0.22 0.41 2.25
2010 11.97 5.53 16.33 9.52 0.29 0.48 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

Net cash used in investing activity -11,848.29 -10,644.67 -5,721.86 -2,805.10 -1.06

Net cash used in fin. activity 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
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
Sources of funds (Rs. Crore)
Owner's fund
Equity share capital 570.6 514.05 385.54 385.41 382.87
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 14,208.55 11,855.15 7,428.45 6,458.39 5,127.81
Loan funds
Secured loans 7,742.60 5,251.65 2,461.99 2,022.04 822.76
Unsecured loans 8,883.31 7,913.91 3,818.53 1,987.10 2,114.08
Total 31,405.06 25,534.76 14,094.51 10,852.94 8,447.52
Uses of funds
Fixed assets
Gross block 18,416.81 13,905.17 10,830.83 8,775.80 7,971.55
Less : revaluation reserve 24.63 25.07 25.51 25.95 26.39
Less : accumulated depreciation 7,212.92 6,259.90 5,443.52 4,894.54 4,401.51
Net block 11,179.26 7,620.20 5,361.80 3,855.31 3,543.65
Capital work-in-progress 5,232.15 6,954.04 5,064.96 2,513.32 951.19
Investments 22,336.90 12,968.13 4,910.27 2,477.00 2,015.15
Net current assets
Current assets, loans & advances 12,329.48 10,836.58 10,781.23 10,318.42 9,812.06
Less : current liabilities & provisions 19,672.73 12,846.21 12,029.80 8,321.20 7,888.65
Total net current assets -7,343.25 -2,009.63 -1,248.57 1,997.22 1,923.41
Miscellaneous expenses not written - 2.02 6.05 10.09 14.12
Total 31,405.06 25,534.76 14,094.51 10,852.94 8,447.52
Notes:
Book value of unquoted investments 21,991.93 12,358.84 4,145.82 2,117.86 1,648.57
Market value of quoted investments 345.53 558.32 2,530.55 1,323.08 1,550.00
Contingent liabilities 3,708.33 5,433.07 5,590.83 5,196.07 2,185.63
Number of equity sharesoutstanding (Lacs) 5705.58 5140.08 3855.04 3853.74 3828.34
Exhibit 7: Annual results
(in brief) (Rs crore)
Mar ' 10 Mar ' 09 Mar ' 07 Mar ' 06 Mar ' 05
Sales 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
EPS (Rs) 39.26 19.48 49.65 39.93 34.19
(in details)
Mar ' 10 Mar ' 09 Mar ' 07 Mar ' 06 Mar ' 05
Other income 1,853.45 925.97 245.19 289.11 166.09
Stock adjustment -606.63 238.04 -349.68 -256.91 -144
Raw material 20,392.60 16,218.62 19,374.93 14,263.86 11,929.48
Power and fuel - - - - -
Employee expenses 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 - - - - -

Expenses capitalised -740.54 -916.02 - - -
Other expenses 10,677.24 6,867.49 3,913.46 2,946.21 2,490.34
Provisions made - - - - -
Depreciation 1,033.87 874.54 586.29 520.94 450.16
Taxation 589.46 12.5 659.72 524.5 414.95
Net profit / loss 2,240.08 1,001.26 1,913.46 1,528.88 1,236.95
Extra-ordinary item -920.45 -65.26 -1.35 5.65 -13.85
Prior year adjustments - - - - -
Equity capital 570.6 514.05 385.41 382.87 361.79
Equity dividend rate - - - - -
Agg.of non-prom. shares (Lacs) 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
Exhibit 8: Share
holding
Share holding pattern as on : 31/12/2010 30/09/2010 30/06/2010
Face value 10 10 10
No. Of No. Of
Shares % Holding No. Of Shares % Holding 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
General public 39497336 7.36 40479846 7.99 42187575 8.33
Grand total 438878819 81.77 506381476 100 506381356 100
 Exhibit 9: Financial data of Tata motors about earing and dividend per share
Net
worth
Profit/ Profit/ Dividen Earnings Divide Per
(loss) (loss) d PAT Per Share nd Per share*
Gross Depreciatio Net Before Taxe After includin to (Basic)* Share
year Block n block Taxes s Taxes g tax sales Rs. RS. (RS.)
1945-46 31 2 29 1 0 1 0 8.30% 0.07 - 10
1949-50 233 44 189 11 5 6 0 3.60% 0.03 - 10
1953-54 731 270 461 3 0 3 0 0.90% 0.11 - 11
1954-55 792 303 489 0 0 0 0 0.00% 0 - 11
1955-56 1010 407 603 125 32 93 59 7.80% 1.32 0.6 12
1956-57 1352 474 878 116 27 89 44 4.10% 1.64 0.8 13
1957-58 1675 668 1007 99 6 93 52 3.50% 1.72 0.9 12
1958-59 2050 780 1270 155 13 142 56 5.40% 1.68 0.9 12
1959-60 2201 940 1261 222 93 129 108 4.60% 1.5 1.25 13
1960-61 2593 1118 1475 313 122 191 126 5.10% 2.26 1.45 14
1961-62 2954 1336 1618 378 188 190 124 4.60% 2.28 1.45 15
1962-63 3281 1550 1731 327 185 142 124 3.30% 1.68 1.45 15
1963-64 3920 1802 2118 404 200 204 144 4.00% 1.97 1.45 16
1964-65 4789 2144 2645 479 208 271 157 4.10% 2.39 1.45 17
1965-66 5432 2540 2892 477 189 288 191 3.60% 2.2 1.45 18
1966-67 6841 3039 3802 620 192 428 235 4.70% 2.8 1.45+ 17
1967-68 7697 3608 4089 395 66 329 235 3.50% 2.1 1.45 18
1968-69 8584 4236 4348 582 173 409 235 3.90% 2.66 1.45 19
1969-70 9242 4886 4356 274 0 274 221 2.80% 1.72 1.35 19
1970-71 10060 5620 4440 673 270 403 251 3.00% 2.49 1.45 20
1971-72 10931 6487 4444 885 379 506 273 3.20% 3.04 1.5 23
1972-73 12227 7491 4736 832 360 472 266 3.00% 2.87 1.5 24
1973-74 13497 8471 5026 1007 450 557 180 3.40% 3.43 0.93 26
1974-75 15838 9593 6245 677 136 541 266 2.40% 3.32 1.5 28
1975-76 18642 10625 8017 855 91 764 276 2.80% 4.6 1.5 33
1976-77 20709 11685 9024 1056 0 1056 323 3.70% 5.38 1.50+ 30
1977-78 22430 12723 9707 1044 0 1044 313 3.70% 5.37 1.5 35
1978-79 24900 13895 11005 1514 0 1514 467 4.00% 5.36 1.60+ 27
1979-80 28405 15099 13306 1762 0 1762 605 3.90% 5.96 2 31
1980-81 33055 16496 16559 2437 0 2437 605 4.00% 8.27 2 38
1981-82 38819 18244 20575 4188 0 4188 839 5.30% 10.18 2.00+ 35$
1982-83 43191 20219 22972 3481 460 3021 827 3.50% 7.34 2 40
1983-84 46838 23078 23760 2163 235 1928 923 2.30% 3.61 2 37@
1984-85 52819 26826 25993 2703 390 2313 1241 2.50% 4.32 2.3 39
1985-86 61943 29030 32913 1832 215 1617 1243 1.60% 3 2.3 41
1986-87 68352 30914 37438 293 0 293 552 0.20% 0.51 1 40
1987-88 75712 34620 41092 3205 510 2695 1356 1.90% 4.25 2.3 38@
1988-89 83455 38460 44995 8513 1510 7003 2444 4.20% 6.74 2.5 40@
1989-90 91488 43070 48418 14829 4575 10254 3126 5.20% 9.87 3 47
1990-91 100894 48219 52675 23455 9250 14205 4154 5.50% 13.69 4 56
1991-92 123100 54609 68491 20884 7800 13084 4389 4.10% 12.45 4 67@
1992-93 153612 61710 91902 3030 26 3004 3642 1.00% 2.47 3 63
1993-94 177824 70285 107539 10195 20 10175 5020 2.70% 7.91 4 65
1324
1994-95 217084 81595 135489 45141 6 31895 8068 5.60% 23.29 6 104
2307
1995-96 294239 96980 197259 76072 0 53002 14300 6.70% 21.92 6 100
1996-97 385116 117009 268107 100046 2381 76236 22067 7.50% 30.4 8 143
 0

Net
Profit/ Profit/ Dividend Earnings Dividen worth
(loss) (loss) PAT Per Share d Per Per
Gross Depreciatio Net Before Taxe After includin to (Basic)* Share share*
year Block n block Taxes s Taxes g tax sales Rs. RS. (RS.)
4.00
1997-98 487073 141899 345174 32880 3414 29466 15484 % 11.51 5.5 147
1.50
1998-99 569865 165334 404531 10716 970 9746 8520 % 3.81 3 147
0.80
1999-00 581233 182818 398415 7520 400 7120 7803 % 2.78 2.5 147
2000-01 591427 209067 382360 -50034 0 -50034 0 - -18.45 - 127
2001-02 591006 243172 347834 -10921 -5548 -5373 0 - -1.98 - 77@
2102 2.80
2002-03 608114 271307 336807 51037 6 30011 14430 % 9.38 4 81
4820 5.20
2003-04 627149 302369 324780 129234 0 81034 31825 % 24.68 8 102@
4149 6.00
2004-05 715079 345428 369651 165190 5 123695 51715 % 34.38 12.50! 114@
5245 6.30
2005-06 892274 440151 452123 205338 0 152888 56778 % 40.57 13 145@
112891 6597 6.00
2006-07 2 489454 639458 257318 2 191346 67639 % 49.76 15 178@
158957 5475 6.00
2007-08 9 544352 1045227 257647 5 202892 65968 % 52.64 15 203@
208520 3.40
2008-09 6 625990 1459216 101376 1250 100126 34570 % 22.7 6 238++
236489 5894 5.60
2009-10 6 721292 1643604 282954 6 224008 99194 % 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
Paid Up Paid Up
To Class Of Authorized Issued Shares Face Paid Up
From Year Year Share Capital Capital (Nos) Value 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 8 10.78

1991 1992 Equity Share 145.5 117.47 106437808 10 106.44

1991 1992 Equity Share 145.5 117.47 22059800 5 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 8

1959 1962 Equity Share 8 8 799538 100 8

1955 1957 Equity Share 5 5 500000 100 5

1950 1955 Equity Share 4 3 300000 100 3

1948 1950 Equity Share 4 2 200000 100 2

1945 1948 Equity Share 4 2 20000 1,000 2

*All values are in Rs. Crore
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