PROJECT REPORT

SUBMITTED FOR THE DEGREE OF B.COM HONOURS

.
(UNDER CBCS) IN ACCOUNTING & FINANCE UNDER THE
UNIVERCITY OF CALCUTTA

TITLE OF THE PROJECT

Comparative Financial Statement Analysis of Tata Motors and
Mahindra & Mahindra for the period 2017 to 2021

-----: SUBMITTED BY :-----

NAME: Samaresh Adak
C.U. REGISTRATION NUMBER: 612-1111-0627-18
C.U. ROLL NUMBER: 181612-21-0074
COLLEGE ROLL NUMBER: 18/CH/31
NAME OF THE COLLEGE: Konnagar Nabagram Hiralal Paul College

-----: SUPERVISED BY :-----

NAME OF THE SUPERVISOR: Prof. Prabir Dutta
NAME OF THE COLLEGE: Konnagar Nabagram Hiralal Paul College
Project Contents
Serial No. Particulars Page No.
1 ANNEXTURE – I 1

2 ANNEXTURE – II 2

3 Acknowledgement 3

Chapter 1 4–7
1. Introduction 4
2. Needs and Justification 4
4 3. Review of Literature 4–5
4. Objectives 5
5. Data & Methodology 6
6. Period of Study 7
7. Limitation of Study 7
Chapter 2 7 – 13
5 1. Conceptual Framework 7 – 12
2. History of Auto Mobile Industries in India 12 – 13
Chapter 3 13 – 34
6
1. Data Analysis & Descriptive Statistics 13 – 34
Chapter 4 35 – 36
7 1. Conclusion 35
2. Bibliography 36
ANNEXTURE - I

Supervisor’s Certificate
This is to certify that Mr. Samaresh Adak a student of B.Com Honours in
Accounting & Finance of Konnagar Nabagram Hiralal Paul Collage under the
University of Calcutta has worked under my supervision & guidance on his project
work and prepared a project report with the “Comparative Financial Statement
Analysis of Tata Motors and Mahindra & Mahindra for the period 2017 to 2021”.
The project report which he is submitting, is his genuine & original work to the
best of my knowledge.

Place: Nabagram, Konnagar

Date: Supervisor Signature
Supervisor Designation
Name: Prabir Dutta
Designation: Professor of the Commerce Department
College Name: Konnagar Nabagram Hiralal Paul Collage

[1]
ANNEXTURE - II

Student’s Declaration
I hereby declare that the project work with the title “Comparative Financial
Statement Analysis of Tata Motors and Mahindra & Mahindra for the period 2017
to 2021” is Submitted by me for the partial fulfilment of the Degree of B.Com
Honours in Accounting & Finance under the University of Calcutta, is my own
work and has not been submitted earlier to any other University or Institution for
the fulfilment of the requirement of any course of study.
I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report earlier work done by other or by me.
However extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in the reference.

Place: Liluah, Howrah

Date: Signature
Student Details
Name: Samaresh Adak
Address: West Chakpara, Liluah, Howrah 711204
C.U. Registration Number: 612-1111-0627-18
C.U. Roll Number: 181612-21-0074
Mobile No.: 9748633568

[2]
Acknowledgement
The successful completion of the project would have been far from reality
without mentioning the people who help me immense while making the project.
I would like to express my deep gratitude to Prof. Prabir Dutta for instructing me
and providing me the opportunity to participate in the project. His guidance and
valuable suggestion helped me to think in right way for the purpose of the
project. It might be difficult or perhaps impossible to prepare this project report
without his guidance. I would also like to give gratitude to all other faculties of
our department who helped me in making the project perfect.

Date:
Signature

[3]
Chapter 01
Introduction
In 2019 India was the 7th largest commercial vehicles manufacturer also in 2020 total of 3.49
million units of combined motor vehicles are sold and India is considered as the 5th largest
Auto Mobile Market.
The automotive industry contributes a whopping 49% of India’s manufacturing GDP. India is
also a prominent auto exporter and has strong export growth expectations for the near
future. In addition, several initiatives by the Government of India and major automobile
players in the Indian market is expected to make India a leader in the two-wheeler and four-
wheeler market in the world by 2020.
In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attached Foreign Direct Investment (FDI) worth 25.40 billion USD between April 2000 and
December 2020.

Needs and Justification

In this project I have evaluated the financial performance of two auto mobile companies in
India, Tata Motors and Mahindra & Mahindra for the period 2017 to 2021. With this data I
am analyzing the performance of the above mentioned companies and compared them both
side by side.

Review of Literature
The Indian automobile industry is one of the largest in the world with an annual production
of 25.3 million vehicles in FY 2016- 17. The automobile industry accounts for 7.1 per cent of
the country's gross domestic product (GDP). The automobile sector plays a vital role in the
development of a nation. India is one of the largest and fastest growing countries in
automobile sector. The research covered customer satisfaction towards Maruti and Tata
Motors. The present study was carried to identify the relationship between demographic
factors and customer satisfaction. The positive influence of customer satisfaction made the
customers to be loyal to the company. The population of the study comprised the total
population of five cities in Andhra Pradesh. Random sample was carried on 1000 customers
out of which 500 were Maruti users and 500 were Tata Motor car users. A well designed
questionnaire was administered for the study. Chi-square, ANOVA, Regression, F-test & Z-

[4]
test were used to analyse the data. The analysis helped in providing improvements in the
pertinent areas of Maruti and Tata Motor cars.
The performance of the firm can be measured by its financial results. Financial decisions
which increase risks will decrease the value of the firm. On the other hand, financial decisions
which increase the profitability will increase value of the firm. Risk and profitability were two
essential ingredients of a business concern. The objectives of the study were to analyse the
short-term and long-term solvency position of the companies. To analyse the profitability
position of the companies. To compare the profitability and liquidity position of the two
companies (tata motors, Mahindra and Mahindra motors).
Tata Motors Ltd is part of Tata group company was established in 1945 as a Locomotive
manufacturing unit. It tied up with Dimler Benz & entered commercial vehicle segment in
1954. In 1986, the company created & sold first light Commercial vehicle (LCV) called Tata
407.
This study aims to highlight the compared performance of two major car manufacturing
companies in India i.e. Tata Motors and Mahindra & Mahindra. In order to enhance the
quality of study, a comparison was made between key financial ratios of both the companies
and further test was applied to find out that whether there was a significant difference
between the performance of Tata Motors and Mahindra & Mahindra or not.

Objectives
In this project I have measure the financial performance of one of the top 2 Indian Auto
Mobile Companies like Tata Motors and Mahindra & Mahindra from April 2017 to March
2021 using the comparative financial ratios.

The main objectives of this project are as follows:

1. Computation of the financial ratios of these companies to judge the earning capacity,
know the profitability and operating efficiency of these companies.
2. Analysis of the profitability of two companies by preparing net profit ratio and return
on investment ratio for the period of 2017-2021.
3. Examine the short-term liquidity portion of the companies by computing current ratio
and liquid ratio.
4. Evaluate solvency of these companies with the help of proprietary ratio and capital
gearing ratio.
5. Evaluate the financial position of these companies compared to each other’s in Indian
financial market.

[5]
Data & Methodology
A brief description of selected two Auto Mobile Companies.

1. Tata Motors ltd.: Tata Motors Limited is

an Indian multinational automotive manufacturing company headquartered
in Mumbai, Maharashtra, India.
The company was Founded in 1945 as a manufacturer of locomotives, the company
manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-
Benz AG, which ended in 1969. In 1998, Tata launched the first fully indigenous Indian
passenger car, the Indica, and in 2008 launched the Tata Nano, the world's cheapest car.
On 27 September 2004, Ratan Tata, the Chairman of Tata Motors, rang the opening bell
at the New York Stock Exchange to mark the listing of Tata Motors. In 2005, Tata Motors
acquired a 21% controlling stake in the Spanish bus and coach manufacturer Hispano
Carrocera. On 8 March 2017, Tata Motors announced that it has signed a memorandum
of understanding with Volkswagen to develop vehicles for India's domestic market. On 3
May 2018, Tata Motors announced that it sold its aerospace and defence business to
another Tata Group Entity, Tata Advanced Systems, to unlock their full potential.

2. Mahindra & Mahindra ltd.: Mahindra & Mahindra was founded as a steel trading
company on 2 October 1945 in Ludhiana as Mahindra & Muhammed by brothers Kailash
Chandra Mahindra and Jagdish Chandra Mahindra along with Malik Ghulam Muhammad.
Anand Mahindra, the present Chairman of Mahindra Group, is the grandson of Jagdish
Chandra Mahindra.
In 1948, the company changed its name to Mahindra & Mahindra. They eventually saw a
business opportunity in expanding into manufacturing and selling larger MUVs and
started assembling under licence of the Willys Jeep in India. Soon, M&M was established
as the Jeep manufacturer in India, later commenced manufacturing light commercial
vehicles (LCVs) and agricultural tractors.
In 2007, M&M acquired Punjab Tractor Limited (PTL) making it the world's largest tractor
manufacturer. Over the past few years, the company has taken interest in new industries
and in foreign markets.
In October 2019, Mahindra entered into a joint venture with Ford by establishing Ford
India in which Mahindra & Mahindra acquired a controlling 51% stake.
In April 2020, the company ended its joint venture with Renault, with Mahindra &
Mahindra buying out Renault's stake. Renault continues to license and supply key
components such as engines and transmissions to Mahindra & Mahindra.

[6]
Period of Study
This comparative performance analysis project is based on the past 5 years of data from the
period 2017 to 2021.

Limitation of Study
1. The study is based on the Secondary Data.
2. The data is collected as per project requirements and not all the financial records are
undertaken in this project.
3. The data is collected form past 5 years for the period 2017 to 2021.

Chapter 02
Conceptual Framework
The five categories of ratios that I have used in this project are as follows.

1. Liquidity Ratios
▪ Current Ratio
▪ Quick Ratio or Acid Test Ratio
2. Profitability Ratios
▪ Profit Margin
▪ Net Profit Margin
▪ Return on Shareholder’s Equity
▪ Return on Assets
3. Market Based Ratios
▪ Earnings per Share
▪ Price Earnings Ratio
4. Solvency Ratios
▪ Inventory Turnover Ratio
▪ Debtor Turnover Ratio
[7]
▪ Working Capital Turnover
▪ Total Asset Turnover
5. Leverage Ratios
▪ Debt to Equity
▪ Interest Coverage Ratio

Liquidity Ratios:
Liquidity Ratio measure a company's ability to pay off its short-term debts as they become
due, using the company's current or quick assets. Liquidity ratios include the current ratio,
quick ratio, and working capital ratio.

i. Current Ratio: The current ratio is a liquidity ratio that measures a company's ability
to pay short-term obligations or those due within one year. It tells investors and
analysts how a company can maximize the current assets on its balance sheet to satisfy
its current debt and other payables. To calculate the ratio, analysts compare a
company's current assets to its current liabilities.

Current Ratio = Current Asset / Current Liabilities

ii. Acid Test Ratio: The numerator of the acid-test ratio can be defined in various ways,
but the main consideration should be gaining a realistic view of the company's liquid
assets. Cash and cash equivalents should definitely be included, as should short-term
investments, such as marketable securities. To calculate the numerator is to take all
current assets and subtract illiquid assets. Most importantly inventories and prepaid
expenses. Then divide it with current liabilities after subtracting bank overdraft from
current liabilities.

Acid Test Ratio = (Current Asset – Inventories – Prepaid Expenses) /

(Current Liabilities – Bank Overdraft)

Profitability Ratios:
These ratios convey how well a company can generate profits from its operations. Profit
margin, return on assets, return on equity, return on capital employed, and gross margin
ratios are all examples of Profitability Ratios.

[8]
i. Profit Margin: Profit margin usually refers to the percentage of revenue remaining
after all costs, depreciation, interest, taxes, and other expenses have been deducted.
Profit margin is one of the most analysed numbers a company can produce, and it plays
a part in many other financial measures. It is also important to understand that
changes in accounting methods can greatly influence profit margins.

Profit Margin = Net Profit / Net Sales

ii. Net Profit Margin: The net profit margin measures how much net income or profit
is generated as a percentage of revenue. It is the ratio of net profits to revenues for a
company or business segment. The net profit margin illustrates how much of each
dollar in revenue collected by a company translates into profit.

Net Profit Margin = Net Profit / Total Revenue

iii. Return on Shareholder’s Equity: Return on equity (ROE) is a measure of financial

performance calculated by dividing net income by shareholders' equity. Because
shareholders' equity is equal to a company’s assets minus its debt, ROE is considered
the return on net assets. ROE is considered a measure of a corporation's profitability
in relation to stockholders’ equity.

Return on Shareholder’s Equity = Net Income / Average Shareholder’s

Equity

iv. Return on Assets: Return on assets (ROA) is an indicator of how profitable a

company is relative to its total assets. Comparing profits to revenue is a useful
operational metric, but comparing them to the resources a company used to earn
them cuts to the very feasibility of that company's existence. ROA is the simplest of
such corporate bang-for-the-buck measures. Higher ROA indicates
more asset efficiency.

Return on Assets = Net Income / Total Assets

Market Based Ratios:

These are the most commonly used ratios in fundamental analysis. They include dividend
yield, P/E ratio, earnings per share (EPS), and dividend payout ratio. Investors use these
metrics to predict earnings and future performance.

[9]
i. Earning per Share: Earnings per share (EPS) is calculated as a company's profit
divided by the outstanding shares of its common stock. The resulting number serves
as an indicator of a company's profitability. It is common for a company to report EPS
that is adjusted for extraordinary items and potential share dilution. Earnings per
share value is calculated as net income (also known as profits or earnings) divided by
available shares.

Earning per Share = EAES (Earning Available to Equity Shareholders)/Share

in Issue

ii. Price Earning Ratio: The price-to-earnings ratio (P/E ratio) is the ratio for valuing a
company that measures its current share price relative to its per-share earnings
(EPS). P/E ratios are used by investors and analysts to determine the relative value of
a company's shares in an apples-to-apples comparison. It can also be used to compare
a company against its own historical record or to compare aggregate markets against
one another or over time.

Price Earning Ratio = Share Price / Earning per Share

Solvency Ratios:
Also called financial leverage ratios, solvency ratios compare a company's debt levels with its
assets, equity, and earnings, to evaluate the likelihood of a company staying afloat over the
long haul, by paying off its long-term debt as well as the interest on its debt. Examples of
solvency ratios includes debt-equity ratios, debt-assets ratios, and interest coverage ratios.

i. Inventory Turnover Ratio: Inventory turnover is the rate at which a company

replaces inventory in a given period due to sales. Calculating inventory turnover helps
businesses make better pricing, manufacturing, marketing, and purchasing
decisions. Well-managed inventory levels show that a company's sales are at the
desired level, and costs are controlled. The inventory turnover ratio is a measure of
how well a company generates sales from its inventory. inventory turnover details
how much inventory is sold over a period. To calculate the inventory turnover
ratio, cost of goods sold (COGS) is divided by the average inventory for the
same period.

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

ii. Debtors Turnover Ratio: The receivables turnover ratio or Debtors Turnover Ratio
is an accounting measure used to quantify a company's effectiveness in collecting

[10]
its accounts receivable, or the money owed by customers or clients. This ratio
measures how well a company uses and manages the credit it extends to customers
and how quickly that short-term debt is collected or is paid. A firm that is efficient at
collecting on its payments due will have a higher accounts receivable turnover ratio.

Debtors Turnover Ratio = Net Sales / Average Debtors

iii. Working Capital Turnover: Working capital turnover is a ratio that measures how
efficiently a company is using its working capital to support sales and growth. Also
known as net sales to working capital, working capital turnover measures the
relationship between the funds used to finance a company's operations and the
revenues a company generates to continue operations and turn a profit.

Working Capital Turnover = Net Sales / Working Capital

iv. Total Asset Turnover: The asset turnover ratio measures the value of a company's
sales or revenues relative to the value of its assets. The asset turnover ratio can be
used as an indicator of the efficiency with which a company is using its assets to
generate revenue. The higher the asset turnover ratio, the more efficient a company
is at generating revenue from its assets. Conversely, if a company has a low asset
turnover ratio, it indicates it is not efficiently using its assets to generate sales.

Total Asset Turnover = Net Sales / Average Assets

Leverage Ratios:
A leverage ratio may also be used to measure a company's mix of operating expenses to get
an idea of how changes in output will affect operating income. Fixed and variable costs are
the two types of operating costs; depending on the company and the industry, the mix will
differ.

i. Debt Equity Ratio: The debt-to-equity (D/E) ratio is used to evaluate a company's
financial leverage and is calculated by dividing a company’s total liabilities by
its shareholder equity. The D/E ratio is an important metric used in corporate finance.
It is a measure of the degree to which a company is financing its operations through
debt versus wholly owned funds. it reflects the ability of shareholder equity to cover
all outstanding debts in the event of a business downturn. The debt-to-equity ratio is
a particular type of gearing ratio.

Debt Equity Ratio = Total Liabilities / Total Shareholder’s Equity

[11]
ii. Interest Coverage Ratio: The interest coverage ratio is a debt and profitability ratio
used to determine how easily a company can pay interest on its outstanding debt. The
interest coverage ratio may be calculated by dividing a company's earnings before
interest and taxes (EBIT) by its interest expense during a given period. The interest
coverage ratio measures how many times a company can cover its current interest
payment with its available earnings. The lower the ratio, the more the company is
burdened by debt expense.
Interest Coverage Ratio = EBIT (Earning Before Interest and Tax) / Interest

History of Auto Mobile Industries in India

In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and
in small numbers. An embryonic automotive industry emerged in India in the
1940s. Hindustan Motors was launched in 1942. Mahindra & Mahindra was established by
two brothers in 1945 and began assembly of Jeep CJ-3A utility vehicles.
Following independence in 1947, the Government of India and the private sector launched
efforts to create an automotive-component manufacturing industry to supply to the
automobile industry.
In 1952, the government appointed the first Tariff Commission, one of whose purposes was
to come out with a feasibility plan for the indigenization of the Indian automobile industry.
In 1953, the commission submitted their report, which recommended categorizing existing
Indian car companies according to their manufacturing infrastructure, with licensed capacity
to manufacture a certain number of vehicles, with capacity increases allowable, as per
demands, in the future. The Tariff Commission recommendations were implemented with
new policies that would eventually exclude companies that only imported parts for assembly,
as well as those with no Indian partner.
The beginning of the 1970s saw some growth potential; and most of the collaboration license
agreements came to an end, but with the option to continue manufacturing with renewed
branding. Cars were still meant for the elite and Jeeps were largely used by government
organizations and in some rural regions. By the end of the decade, some developments were
made in commercial vehicle segments to facilitate the movement of goods. The two-wheeler
segment remained unchanged except for to increased sales to the middle class in urban
areas. There was emphasis on having more farm tractors, as India was embarking on a
new Green Revolution; and Russian and eastern bloc imports were brought in to meet the
demand.
In the 1970s, price controls were finally lifted, inserting a competitive element into the
automobile market. However, by the 1980s, the automobile market was still dominated
by Hindustan and Premier, who sold superannuated products in fairly limited numbers. The
[12]
rate of car ownership in 1981 was about one in every thousand citizens – understandable
when the annual road tax alone cost about half the average income of an Indian at the time.
In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory
Medak, near Hyderabad. It started manufacturing Infantry Combat Vehicles christened
as Sarath, the backbone of India's mechanised infantry. The 1986 Expo was a showcase for
how the Indian automotive industry was absorbing new technologies, promoting indigenous
research and development, and adapting these technologies for the rugged conditions of
India. The nine-day show was attended by then Prime Minister Rajiv Gandhi.
Eventually multinational automakers, such as, Suzuki and Toyota of Japan
and Hyundai of South Korea, were allowed to invest in the Indian market, furthering the
establishment of an automotive industry in India. Maruti Suzuki was the first, and the most
successful of these new entries, and in part the result of government policies to promote the
automotive industry beginning in the 1980s. As India began to liberalise its automobile
market in 1991, a number of foreign firms also initiated joint ventures with existing Indian
companies. The variety of options available to the consumer began to multiply in the nineties,
whereas before there had usually only been one option in each price class. By 2000, there
were 12 large automotive companies in the Indian market, most of them offshoots of global
companies.

Chapter 03
Data Analysis and Descriptive Statistics
Table 01
Profit and loss statement of Tata Motors for the Period 2017 to 2021
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Revenue from Operations (Gross) 48,078.77 58,234.33 68,764.88 43,485.76 46,559.39
Less: Excise/ Service Tax / Other Levies 4,738.15 793.28 0 0 0
Revenue from Operations (Net) 43,340.62 57,441.05 68,764.88 43,485.76 46,559.39
Total Operating Revenues (Net Sales) 44,316.34 58,831.41 69,202.76 43,928.17 47,031.47
Other Income 981.06 1,557.60 2,554.66 1,383.05 842.96
Total Revenue 45,297.40 60,389.01 71,757.42 45,311.22 47,874.43
Cost of Materials Consumed 27,651.65 37,080.45 43,748.77 26,171.85 30,010.61
Operating and Direct Expenses 454.48 474.98 571.76 830.24 0
Change in Inventories -252.14 842.05 144.69 722.68 -69.02
Employee Benefit Expenses 3,764.35 3,966.73 4,273.10 4,384.31 4,212.99
Financial Cost 1,569.01 1,744.43 1,793.57 1,973.00 2,358.54

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Depreciation and Amortisation Expenses 3,037.12 3,101.89 3,098.64 3,375.29 3,681.61
Other Expenses 8,083.12 9,251.41 9,895.68 7,959.75 5,893.68
Total Expenses 47,311.96 60,369.27 69,155.42 49,927.64 51,579.08
Operating Profit 1,610.51 3,308.46 4,939.55 -651.18 1,492.54
PBDIT (Profit Before Depreciation,
2,257.98 3,911.37 7,252.17 -1,848.12 3,727.58
Interest and Tax)
Interest 1,569.01 1,744.43 1,793.57 1,973.00 2,358.54
PBDT (Profit Before Depreciation and
688.97 2,166.94 5,458.60 -3,821.12 1,369.04
Tax)
Depreciation 3,037.12 3,101.89 3,098.64 3,375.29 3,681.61
PBT (Profit Before Tax) -2,348.15 -934.95 2,359.96 -7,196.41 -2,312.57
Tax 76.33 87.93 378.33 162.29 82.87
Reported Net Profit -2,429.60 -1,034.85 2,020.60 -7,289.63 -2,395.44
Total Value Addition 10,706.74 12,198.69 13,029.76 11,543.47 10,106.67
Shares in Issue 33,958.51 33,958.51 33,958.51 35,974.77 38,290.50

Table 02
Balance Sheet of Tata Motors for the Period 2017 to 2021
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Equities and Liabilities
Shareholder's Funds
Equity Share Capital 679.22 679.22 679.22 719.54 765.81
Total Share Capital 679.22 679.22 679.22 719.54 765.81
Reserves and Surplus 20,483.39 19,491.76 21,483.30 16,800.61 18,290.16
Total Reserves and Surplus 20,483.39 19,491.76 21,483.30 16,800.61 18,290.16
Total Shareholder's Funds 21,162.61 20,170.98 22,162.52 18,387.65 19,055.97
Non-Current Liabilities
Long Term Borrowings 13,686.09 13,155.91 13,914.74 14,776.51 16,326.77
Deferred Tax Liabilities [Net] 147.58 154.61 205.86 198.59 266.5
Other Long Term Liabilities 1,451.47 502.37 404.11 1,646.56 1,786.93
Long Term Provisions 892.18 1,009.48 1,281.59 1,769.74 1,371.94
Total Non-Current Liabilities 16,177.32 14,822.37 15,806.30 18,391.40 19,752.14
Current Liabilities
Short Term Borrowings 5,158.52 3,099.87 3,617.72 6,121.36 2,542.50
Trade Payables 11,462.24 14,225.63 10,408.83 8,102.25 15,988.13
Other Current Liabilities 4,440.42 6,030.53 7,765.57 10,180.46 6,677.38
Short Term Provisions 477.17 862.92 1,148.69 1,406.75 1,043.54
Total Current Liabilities 21,538.35 24,218.95 22,940.81 25,810.82 26,251.55

[14]
Total Capital and Liabilities 58,878.28 59,212.30 60,909.63 62,589.87 65,059.66
Assets
Non-Current Assets
Tangible Assets 17,897.13 18,192.52 18,316.61 19,540.25 29,429.56
Intangible Assets 2,875.80 3,411.23 3,970.22 5,667.73 0
Capital Work-In-Progress 1,902.61 1,371.45 2,146.96 1,755.51 0
Fixed Assets 28,043.92 26,800.35 28,573.42 29,702.78 29,429.56
Non-Current Investments 14,858.39 14,260.79 15,434.19 15,730.86 16,114.91
Long Term Loans and Advances 391.46 143.96 143.13 138.46 126.05
Other Non-Current Assets 2,827.44 3,035.54 3,529.59 3,449.01 3,534.55
Total Non-Current Assets 46,121.21 44,240.64 47,680.33 49,021.11 49,205.07
Current Assets
Current Investments 2,437.42 2,502.78 1,433.18 885.31 1,578.26
Inventories 5,553.01 5,670.13 4,662.00 3,831.92 4,551.71
Trade Receivables 2,128.00 3,479.81 3,250.64 1,978.06 2,087.51
Cash and Cash Equivalents 326.61 795.42 1,306.61 3,532.19 4,318.94
Short Term Loans and Advances 215.96 140.27 200.08 232.14 185.42
Other Current Assets 2,096.07 2,383.25 2,376.79 3,109.14 3,132.75
Total Current Assets 12,757.07 14,971.66 13,229.30 13,568.76 15,854.59
Total Assets 58,878.28 59,212.30 60,909.63 62,589.87 65,059.66

Table 03
Key Financial Ratios of Tata Motors for the Period 2017 to 2021
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Current Ratio 0.59 0.62 0.58 0.53 0.6
Quick Ratio 0.33 0.38 0.37 0.38 0.43
Profit Margin 3.63 5.62 7.14 -1.48 3.17
Net Profit Margin -5.48 -1.76 2.91 -16.59 -5.09
Return on Shareholder's Equity -11.48 -5.13 9.12 -39.64 -12.57
Return on Assets -4.13 -1.75 3.32 -11.65 -3.68
Earning per Share -7.15 -3.05 5.95 -20.26 -6.26
Price Earnings Ratio -27.96 -65.63 33.61 -9.87 -31.97
Inventory Turnover Ratio 7.98 10.38 14.84 11.46 10.33
Debtor Turnover Ratio 21.24 20.98 20.56 16.8 23.14
Working Capital Turnover Ratio -5.05 -6.36 -7.13 -3.59 -4.52
Total Asset Turnover 75.27 99.36 113.62 70.18 72.29
Debt to Equity 86.69 87.18 89.68 86.99 84.96

[15]
Interest Coverage Ratio 1.03 1.9 2.75 -0.33 0.63
Return on Total Assets 0.29 0.58 1.06 -0.17 0.33
Return on Sales 0.04 0.06 0.07 -0.01 0.03

Table 04
Profit and loss statement of Mahindra & Mahindra for the Period 2017 to 2021
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Revenue from Operations (Gross) 46,709.17 48,871.76 52,960.80 44,897.93 45,040.98
Less: Excise/ Service Tax / Other Levies 3,330.24 759.44 0 0 0
Revenue from Operations (Net) 43,378.93 48,112.32 52,960.80 44,897.93 45,040.98
Total Operating Revenues (Net Sales) 44,053.50 48,685.55 53,614.00 45,487.78 45,040.98
Other Income 1,345.46 1,036.36 1,688.97 1,667.81 1,221.31
Total Revenue 45,398.96 49,721.91 55,302.97 47,155.59 46,262.29
Cost of Materials Consumed 21,129.65 23,265.31 27,095.07 22,873.74 25,035.89
Operating and Direct Expenses 0 0 0 0 0
Change in Inventories 57.87 194.87 -950.19 409.49 -240
Employee Benefit Expenses 2,714.43 2,840.89 2,980.22 2,880.08 2,858.80
Financial Cost 159.59 112.20 113.39 113.23 370.88
Depreciation and Amortisation Expenses 1,526.38 1,479.42 1,860.40 2,222.63 2,232.99
Other Expenses 4,880.33 5,614.45 5,867.23 5,384.59 4,083.26
Total Expenses 41,224.81 44,053.15 48,948.23 42,025.58 41,158.94
Operating Profit 4,514.66 6,224.02 6,639.56 5,798.06 6,485.91
PBDIT (Profit Before Depreciation,
6,405.32 7,702.06 8,289.95 5,443.96 4,043.95
Interest and Tax)
Interest 159.59 112.20 113.39 113.23 370.88
PBDT (Profit Before Depreciation and Tax) 6,245.73 7,589.86 8,176.56 5,330.73 3,673.07
Depreciation 1,526.38 1,479.42 1,860.40 2,222.63 2,232.99
PBT (Profit Before Tax) 4,719.35 6,110.44 6,316.16 3,108.10 1,440.08
Tax 1,079.22 1,746.36 1,528.97 1,785.48 1,191.62
Reported Net Profit 3,643.39 4,356.01 4,796.04 1,330.55 248.46
Total Value Addition 7,296.40 8,146.89 8,519.84 7,946.67 6,942.06
Shares in Issue 6,210.92 12,431.93 12,431.93 12,431.93 11,947.80

[16]
Table 05
Balance Sheet of Mahindra & Mahindra for the Period 2017 to 2021
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Equities and Liabilities
Shareholder's Funds
Equity Share Capital 296.81 594.97 595.8 596.52 597.39
Total Share Capital 296.81 594.97 595.8 596.52 597.39
Reserves and Surplus 26,488.56 29,699.07 33,613.43 33,871.32 33,904.53
Total Reserves and Surplus 26,488.56 29,699.07 33,613.43 33,871.32 33,904.53
Total Shareholder's Funds 26,785.37 30,294.04 34,209.23 34,467.84 34,501.92
Non-Current Liabilities
Long Term Borrowings 2,233.99 2,195.90 2,031.78 2,032.03 7,070.03
Deferred Tax Liabilities [Net] 0 277.24 634.13 1,408.17 1,343.15
Other Long Term Liabilities 490.21 464.55 604.92 698.22 585.11
Long Term Provisions 824.45 861.81 882.93 922.98 955.42
Total Non-Current Liabilities 3,548.65 3,799.50 4,153.76 5,061.40 9,953.71
Current Liabilities
Short Term Borrowings 538.88 668.47 448.54 900.00 24.74
Trade Payables 6,881.08 8,603.40 9,678.15 6,785.83 9,988.16
Other Current Liabilities 1,648.61 3,383.95 3,518.71 2,691.43 4,633.79
Short Term Provisions 565.48 667.39 688.67 595.56 486.48
Total Current Liabilities 9,634.05 13,323.21 14,334.07 10,972.82 15,133.17
Total Capital and Liabilities 39,968.07 47,416.75 52,697.06 50,502.06 59,588.80
Assets
Non-Current Assets
Tangible Assets 6,536.72 6,507.95 7,614.71 7,980.76 15,011.51
Intangible Assets 1,234.32 1,351.46 2,467.04 2,413.83 0
Capital Work-In-Progress 409.78 1,079.72 706.77 1,196.68 0
Fixed Assets 9,811.44 10,988.12 12,501.54 14,404.05 15,011.51
Non-Current Investments 14,301.70 16,645.48 19,032.07 17,748.48 19,576.60
Deferred Tax Assets [Net] 254.84 0.00 0.00 0.00 0.00
Long Term Loans and Advances 34.12 43.01 37.55 138.86 1,652.72
Other Non-Current Assets 2,958.22 3,265.67 3,054.84 3,069.18 3,035.67
Total Non-Current Assets 27,360.32 30,942.28 34,626.00 35,360.57 39,276.50
Current Assets
Current Investments 3,606.70 3,937.49 2,983.96 2,189.65 4,488.47
Inventories 2,758.01 2,701.69 3,839.27 3,400.91 3,955.47
Trade Receivables 2,938.84 3,172.98 3,946.30 2,998.98 2,342.85
[17]
Cash and Cash Equivalents 1,687.48 2,893.73 3,731.66 4,236.51 6,255.42
Short Term Loans and Advances 506.51 975.16 673.4 512.02 756.94
Other Current Assets 1,110.46 2,793.42 2,896.47 1,803.42 2,513.15
Total Current Assets 12,608.00 16,474.47 18,071.06 15,141.49 20,312.30
Total Assets 39,968.32 47,416.75 52,697.06 50,502.06 59,588.80

Table 06
Key Financial Ratios of Mahindra & Mahindra for the Period 2017 to 2021
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Current Ratio 1.31 1.24 1.26 1.38 1.34
Quick Ratio 1.02 1.03 0.99 1.07 1.08
Profit Margin 10.25 12.78 12.38 12.75 14.4
Net Profit Margin 8.27 8.94 8.94 2.92 0.55
Return on Shareholder's Equity 13.6 14.37 14.01 3.86 0.72
Return on Assets 9.11 9.18 9.1 2.63 0.41
Earning per Share 30.69 36.64 40.29 11.16 2.25
Price Earnings Ratio 8.15 13.66 12.42 44.83 238.42
Inventory Turnover Ratio 15.97 18.02 13.96 13.38 11.39
Debtor Turnover Ratio 16.16 15.93 15.06 13.1 16.86
Working Capital Turnover Ratio 14.81 15.45 14.35 10.91 8.7
Total Asset Turnover 110.22 102.67 101.74 90.07 75.58
Debt to Equity 134.66 79.7 88.45 84.66 99.75
Interest Coverage Ratio 28.29 55.47 58.56 51.21 17.49
Return on Total Assets 11.3 13.13 12.6 11.48 10.88
Return on Sales 10.25 12.78 12.38 12.75 14.4

[18]
Current Ratio
Table 1
Calculation of 5 Years Current Ratio of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Current Assets 12757.08 14971.66 13229.3 13568.76 15854.59
Current Liabilities 21538.35 24218.95 22940.81 25810.82 26251.55
Current Ratio 0.59 0.62 0.58 0.53 0.60
Source: from Table 02 of this Chapter

Table 2
Calculation of 5 Years Current Ratio of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Current Assets 12,608.00 16,474.47 18,071.06 15,141.49 20,312.30
Current Liabilities 9,634.05 13,323.21 14,334.07 10,972.82 15,133.17
Current Ratio 1.31 1.24 1.26 1.38 1.34
Source: from Table 05 of this Chapter

Graphical Presentation of Current Ratio

A Comparative Analysis of Current Ratio of Tata Motors and
Mahindra & Mahindra
1.5 1.38 1.34
1.4 1.31 1.26
1.24
1.3
1.2
1.1
1
0.9
0.8
0.7 0.59 0.62 0.58 0.6
0.6 0.53
0.5
0.4
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: while comparing current ratio of Tata Motors and Mahindra & Mahindra, we get
that the current ratios of Mahindra & Mahindra is always higher compared to the ratios of
Tata Motors. But the ratios of Mahindra & Mahindra is consistently pointing downwards
compared to itself from March 2017 to March 2019 but in March 2020 it get a little bit
higher but in March 2021 it gets lower. The ratios of Tata Motors is always lower compared
[19]
to Mahindra & Mahindra. But while comparing with itself the ratio of Tata Motors is lower
in March 2017 but it increases in March 2018 than the ratio pointing downward for straight
2 years from March 2018 to March 2020 then at the in March 2021 it increases.

Quick Ratio
Table 1
Calculation of 5 Years Quick Ratio of Tata Motors
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Current Assets 12757.08 14971.66 13229.3 13568.76 15854.59
Inventories 5,553.01 5,670.13 4,662.00 3,831.92 4,551.71
Prepaid Expenses --- --- --- --- ---
Current Liabilities 21538.35 24218.95 22940.81 25810.82 26251.55
Bank Overdraft --- --- --- --- ---
Quick Ratio 0.33 0.38 0.37 0.38 0.43
Source: from Table 02 of this Chapter

Table 2
Calculation of 5 Years Quick Ratio of Mahindra & Mahindra
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Current Assets 12,608.00 16,474.47 18,071.06 15,141.49 20,312.30
Inventories 2,758.01 2,701.69 3,839.27 3,400.91 3,955.47
Prepaid Expenses --- --- --- --- ---
Current Liabilities 9,634.05 13,323.21 14,334.07 10,972.82 15,133.17
Bank Overdraft --- --- --- --- ---
Quick Ratio 1.02 1.03 0.99 1.07 1.08
Source: from Table 05 of this Chapter

[20]
Graphical Presentation of Quick Ratio
A Comparative Analysis of Quick Ratio of Tata Motors and
Mahindra & Mahindra
1.20 1.07 1.08
1.10 1.02 1.03 0.99
1.00
0.90
0.80
0.70
0.60
0.50 0.43
0.38 0.37 0.38
0.40 0.33
0.30
0.20
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: In case of Quick Ratios analysis the ratios of Mahindra & Mahindra is always higher
compared to Tata Motors. But compared to itself the quick ratio Mahindra & Mahindra is
increasing slowly but in March 2019 the ratio decreases. But incase of Tata Motors the ratios
consistently increasing throughout the timeline from March 2017 to March 2021.

Profit Margin
Table 1
Calculation of 5 Years Profit Margin of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Operating Profit 1610.51 3308.46 4939.55 -651.18 1492.54
Total Revenue 44,316.34 58,831.41 69,202.76 43,928.17 47,031.47
Profit Margin 3.63 5.62 7.14 -1.48 3.17
Source: from Table 01 of this Chapter

Table 2
Calculation of 5 Years Profit Margin of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Operating Profit 4514.66 6224.02 6639.56 5798.06 6485.91
Total Revenue 44,053.50 48,685.55 53,614.00 45,487.78 45,040.98

Profit Margin 10.25 12.78 12.38 12.75 14.40

Source: from Table 04 of this Chapter

[21]
Graphical Presentation of Profit Margin
A Comparative Analysis of Profit Margin of Tata Motors and
Mahindra & Mahindra
17.00
14.4
15.00 12.78 12.75
12.38
13.00
10.25
11.00
9.00 7.14
7.00 5.62
5.00 3.63 3.17
3.00
1.00
-1.48
-1.00
-3.00
-5.00
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021

Tata Motors Mahindra & Mahindra

Findings: while comparing profit margin of Tata Motors and Mahindra & Mahindra we get
that the ratios of Mahindra & Mahindra is always higher and consistently increasing
compared to Tata Motors. But on the other hand the ratios of Tata Motors are increasing at
the first from March 2017 to March 2019 but in March 2020 it suddenly drops then in March
2021 it increases slightly compared to the previous year.

Net Profit Margin

Table 1
Calculation of 5 Years Net Profit Margin of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Net Profit -2429.60 -1034.85 2020.60 -7289.63 -2395.44
Total Revenue 44,316.34 58,831.41 69,202.76 43,928.17 47,031.47
Net Profit Margin -5.48 -1.76 2.92 -16.59 -5.09
Source: from Table 01 of this Chapter

Table 2
Calculation of 5 Years Net Profit Margin of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Net Profit 3643.39 4356.01 4796.04 1330.55 248.46
[22]
Total Revenue 44,053.50 48,685.55 53,614.00 45,487.78 45,040.98
Net Profit Margin 8.27 8.95 8.95 2.93 0.55
Source: from Table 04 of this Chapter

Graphical Presentation of Net Profit Margin

A Comparative Analysis of Net Profit Margin of Tata Motors
and Mahindra & Mahindra
15.00
8.27 8.93 8.93
10.00
5.00 2.92 2.93
0.55
-1.76
0.00
-5.48 -5.09
-5.00
-10.00
-16.59
-15.00
-20.00
Mar 2017 Mar 201 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: In case of Net Profit Margin analysis of Tata Motors and Mahindra & Mahindra we
can see that Mahindra & Mahindra ratios are always higher than Tata Motors. But while
comparing to itself, the ratios of Mahindra & Mahindra are in the same level but from March
2020 the ratios start to decreasing. The ratios of Tata Motors are increasing at the first from
March 2017 to March 2019 but suddenly in March 2020 it decreases and in the next year it
increases again.

Return on Shareholder’s Equity

Table 1
Calculation of 5 Years Return on Shareholder’s Equity of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Net Income -2429.60 -1,034.85 2020.60 -7289.63 -2395.44
Average Shareholder's Equity 21,162.61 20,170.98 22,162.52 18,387.65 19,055.97
Return on Shareholder's Equity -11.48 -5.13 9.12 -39.64 -12.57
Source: from Table 01 and Table 02 of this Chapter

[23]
Table 2
Calculation of 5 Years Return on Shareholder’s Equity of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Net Income 3643.39 4,356.01 4796.04 1330.55 248.46
Average Shareholder's Equity 26,785.37 30,294.04 34,209.23 34,467.84 34,501.92
Return on Shareholder's Equity 13.60 14.38 14.02 3.86 0.72
Source: from Table 04 and Table 05 of this Chapter

Graphical Presentation of Return on Shareholder’s Equity

A Comparative Analysis of Return on Shareholder's Equity of

Tata Motors and Mahindra & Mahindra
25.00
17.00 13.6 14.38 14.02
9.12
9.00 3.86
0.72
1.00
-7.00
-5.13
-15.00 -11.48 -12.57
-23.00
-31.00
-39.00
-47.00 -39.64
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: while comparing the return on shareholder’s equity of Tata Motors and Mahindra
& Mahindra we can see that the ratios of Tata Motors is always lower than Mahindra &
Mahindra. The ratios of Tata Motors are negative most of the time but in March 2019 it
increases and get a positive value. On the other hand, the ratios of Mahindra & Mahindra is
always positive but at the end in March 2020 and March 2021 it decreases.

Return on Assets
Table 1
Calculation of 5 Years Return on Assets of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Net Income -2429.60 -1,034.85 2020.60 -7289.63 -2395.44
Total Assets 58878.28 59212.3 60909.63 62589.87 65059.66
[24]
Return on Assets -4.13 -1.75 3.32 -11.65 -3.68
Source: from Table 01 and Table 02 of this Chapter

Table 2
Calculation of 5 Years Return on Assets of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Net Income 3643.39 4,356.01 4796.04 1330.55 248.46
Total Assets 39,968.32 47,416.75 52697.06 50502.06 59,588.80
Return on Assets 9.12 9.19 9.10 2.63 0.42
Source: from Table 04 and Table 05 of this Chapter

Graphical Presentation of Return on Assets

A Comparative Analysis of Return on Assets of Tata Motors

and Mahindra & Mahindra
12 9.19
9.12 9.1
9
6 3.32 2.63
3 0.42
0
-3 -1.75
-6 -4.13 -3.68
-9
-12
-11.65
-15
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: In case of Return on Assets the ratios of Mahindra & Mahindra is higher compared
to Tata Motors. But compared to itself Mahindra’s ratios are decreasing at the last 2 years
on the timeline. The ratios of Tata Motors are negative most of the time but in March 2019
it increases and get a positive sloping.

Earnings per Share

Table 1
Calculation of 5 Years Earnings per Share of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
EAES (Net Profit) -2429.60 -1,034.85 2020.60 -7289.63 -2395.44

[25]
Share in Issue 33,958.51 33,958.51 33,958.51 35,974.77 38,290.50
Earning per Share -7.15 -3.05 5.95 -20.26 -6.26
Source: from Table 01 of this Chapter

Table 2
Calculation of 5 Years Earnings per Share of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
EAES (Net Profit) 3643.39 4,356.01 4796.04 1330.55 248.46
Share in Issue 6,210.92 12,431.93 12,431.93 12,431.93 11,947.80
Earning per Share 58.66 35.04 38.58 10.70 2.08
Source: from Table 04 of this Chapter

Graphical Presentation of Earnings per Share

A Comparative Analysis of Earning per Share of Tata Motors

70 and Mahindra & Mahindra
58.66
60
50
35.04 38.58
40
30
20 10.7
10 5.95 2.08
0
-10 -3.05
-7.15 -6.26
-20
-30 -20.26
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: while comparing the Earning per Share of Tata Motors and Mahindra & Mahindra
we can see that the ratios of Tata Motors is always lower than Mahindra & Mahindra. The
ratios of Tata Motors are negative most of the time but in March 2019 it increases and get
a positive value. On the other hand, the ratios of Mahindra & Mahindra is always positive
but it was decreasing consistently throughout the timeline from March 2017 to March 2021.

[26]
Price Earning Ratio
Table 1
Calculation of 5 Years Price Earning Ratio of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Total Share Capital 679.22 679.22 679.22 719.54 765.81
Net Profit -2429.60 -1,034.85 2020.60 -7289.63 -2395.44
Share in Issue 33,958.51 33,958.51 33,958.51 35,974.77 38,290.50
Share Price 2.00 2.00 2.00 2.00 2.00
Earning per Share -7.15 -3.05 5.95 -20.26 -6.26
Price Earning Ratio -27.96 -65.63 33.61 -9.87 -31.97
Source: from Table 01 and Table 02 of this Chapter

Table 2
Calculation of 5 Years Price Earning Ratio of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Total Share Capital 296.81 594.97 595.80 596.52 592.39
Net Profit 3643.39 4,356.01 4796.04 1330.55 248.46
Share in Issue 6,210.92 12,431.93 12,431.93 12,431.93 11,947.80

Share Price 4.78 4.79 4.79 4.80 4.96

Earning per Share 58.66 35.04 38.58 10.70 2.08
Price Earning Ratio 8.15 13.66 12.42 44.83 238.42
Source: from Table 04 and Table 05 of this Chapter

[27]
Graphical Presentation of Price Earning Ratio
A Comparative Analysis of Price Earning Ratio of Tata Motors
and Mahindra & Mahindra
300
238.42
250
200
150
100
33.61 44.83
50 13.66 12.42
8.15
0
-50 -9.87
-27.96 -31.97
-100 -65.63

Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021

Tata Motors Mahindra & Mahindra

Findings: In Price Earning Ratio analysis Mahindra & Mahindra’s Price Earning Ratios are
most of the time higher compared to Tata Motors but in March 2019 Tata Motors ratios got
higher than Mahindra’s. Mahindra & Mahindra’s ratio is lower at the beginning but in March
2020 & March 2021 the ratios of Mahindra got higher. Tata Motor’s ratios are negatively
slopped most of the time but in March 2019 the ratio got a positive slopping.

Inventory Turnover Ratio

Table 1
Calculation of 5 Years Inventory Turnover Ratio of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Net Sales 44316.34 58,831.41 69202.76 43928.17 47031.47
Average Stock 5,553.01 5,670.13 4,662.00 3,831.92 4,551.71
Inventory Turnover Ratio 7.98 10.38 14.84 11.46 10.33
Source: from Table 01 and Table 02 of this Chapter

Table 2
Calculation of 5 Years Inventory Turnover Ratio of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Net Sales 44053.50 48,685.55 53614.00 45487.78 45040.98

[28]
Average Stock 2,758.01 2,701.69 3,839.27 3,400.91 3,955.47
Inventory Turnover Ratio 15.97 18.02 13.96 13.38 11.39
Source: from Table 04 and Table 05 of this Chapter

Graphical Presentation of Inventory Turnover Ratio

A Comparative Analysis of Inventory Turnover Ratio of Tata
Motors and Mahindra & Mahindra
20 18.02
18 15.97
16 14.84
13.96 13.38
14
11.46 11.39
12 10.38 10.33
10 7.98
8
6
4
2
0
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: while comparing the Inventory Turnover Ratio of Tata Motors and Mahindra &
Mahindra we can see that Mahindra & Mahindra’s ratios is higher compared to Tata Motors
but in March 2019 the ratio of Tata Motors gets higher than Mahindra’s. the Inventory
Turnover ratios of Mahindra & Mahindra are increasing in the beginning from March 2017 to
March 2018 but from March 2019 the ratios continuously decreases. On the other hand Tata
Motors ratios is lower at first but it was increasing from March 2017 to March 2019 then it
started to decreasing from March 2020 till the end.

Working Capital Turnover Ratio

Table 1
Calculation of 5 Years Working Capital Turnover Ratio of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Net Sales 44316.34 58,831.41 69202.76 43928.17 47031.47
Current Assets 12757.08 14971.66 13229.3 13568.76 15854.59
Current Liabilities 21538.35 24218.95 22940.81 25810.82 26251.55

[29]
Working Capital -8781.27 -9247.29 -9711.51 -12242.06 -10396.96
Working Capital Turnover Ratio -5.05 -6.36 -7.13 -3.59 -4.52
Source: from Table 01 and Table 02 of this Chapter

Table 2
Calculation of 5 Years Working Capital Turnover Ratio of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Net Sales 44053.50 48,685.55 53614.00 45487.78 45040.98
Current Assets 12608 16474.47 18071.06 15141.49 20312.3
Current Liabilities 9634.05 13323.21 14334.07 10972.82 15133.17
Working Capital 2973.95 3151.26 3736.99 4168.67 5179.13
Working Capital Turnover Ratio 14.81 15.45 14.35 10.91 8.70
Source: from Table 04 and Table 05 of this Chapter

Graphical Presentation of Working Capital Turnover Ratio

A Comparative Analysis of Working Capital Turnover Ratio of
Tata Motors and Mahindra & Mahindra
20
14.81 15.45 14.35
15
10.91
10 8.7

-5 -3.59
-5.05 -4.52
-6.36 -7.13
-10
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: In case of Working Capital Turnover Analysis we can see that the ratios of Tata
Motors are always negatively sloped and the ratios of Mahindra & Mahindra’s are always
higher than Tata Motors. The Working Capital Turnover Ratio of Mahindra & Mahindra is
similar at the first but from March 2019 it started to decreasing till March 2021. The Working
Capital Turnover ratios of Tata Motors is always negative.

Total Asset Turnover Ratio

[30]
Table 1
Calculation of 5 Years Total Asset Turnover Ratio of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Net Sales 44316.34 58,831.41 69202.76 43928.17 47031.47
Average Asset 58,878.28 59,212.30 60,909.63 62,589.87 65,059.66
Total Asset Turnover Ratio 75.27 99.36 113.62 70.18 72.29
Source: from Table 01 and Table 02 of this Chapter

Table 2
Calculation of 5 Years Total Asset Turnover Ratio of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Net Sales 44053.50 48,685.55 53614.00 45487.78 45040.98
Average Asset 39,968.32 47,416.75 52697.06 50502.06 59,588.80
Total Asset Turnover Ratio 110.22 102.68 101.74 90.07 75.59
Source: from Table 04 and Table 05 of this Chapter

Graphical Presentation of Total Asset Turnover Ratio

A Comparative Analysis of Total Asset Turnover Ratio of Tata

Motors and Mahindra & Mahindra
120 110.22 113.62
99.36 102.68 101.74
100 90.07

80 75.27
70.18 72.2975.59

60

40

20

0
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: While comparing the Total Asset Turnover Ratio of Tata Motors and Mahindra &
Mahindra we can see that Mahindra’s Ratio is higher most of the time compared to Tata
Motors but in March 2019 Tata Motors Ratio got a higher than Mahindra’s. the Total Asset

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Turnover ratios of Tata Motors are increasing in the beginning, from March 2018 to March
2019 but from March 2020 the ratios started to decreasing. On the other hand Mahindra &
Mahindra’s Total Asset Turnover ratios are continuously decreasing from the beginning to
the End of Timeline from March 2017 to March 2021.

Debt to Equity Ratio

Table 1
Calculation of 5 Years Debt to Equity Ratio of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
Total Liabilities 58878.28 59212.30 60909.63 62589.87 65059.66
Total Shareholder's Equity 679.22 679.22 679.22 719.54 765.81
Debt to Equity Ratio 86.69 87.18 89.68 86.99 84.96
Source: from Table 02 of this Chapter
Table 2
Calculation of 5 Years Debt to Equity Ratio of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
Total Liabilities 39968.32 47416.75 52697.06 50502.06 59588.80
Total Shareholder's Equity 296.81 594.97 595.80 596.52 597.39
Debt to Equity 134.66 79.70 88.45 84.66 99.75
Source: from Table 05 of this Chapter

Graphical Presentation of Debt to Equity Ratio

A Comparative Analysis of Debt to Equity Ratio of Tata
Motors and Mahindra & Mahindra
150 134.66

120 89.68 99.75

86.69 79.7 87.18 88.45 86.99 84.66
90 84.96
60
30
0
Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Tata Motors Mahindra & Mahindra

Findings: In Debt Equity Ratio Comparative Analysis of Tata Motors and Mahindra &
Mahindra we get that, Mahindra’s ratio is higher in March 2017 but from March 2018 it

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started to decreasing than again in March 2021 Mahindra’s Debt Equity Ratio got higher
compared to Tata Motors. On the other hand the Debt Equity Ratio of Tata Motors
maintained a straight line with some slightly increasing and decreasing.

Interest Coverage Ratio

Table 1
Calculation of 5 Years Interest Coverage Ratio of Tata Motors
Particulars March 17 March 18 March 19 March 20 March 21
EBIT (Operating Profit) 1610.51 3,308.46 4939.55 -651.18 1492.54
Interest 1,569.01 1,744.43 1,793.57 1,973.00 2,358.54
Interest Coverage Ratio 1.03 1.90 2.75 -0.33 0.63
Source: from Table 01 of this Chapter
Table 2
Calculation of 5 Years Interest Coverage Ratio of Mahindra & Mahindra
Particulars March 17 March 18 March 19 March 20 March 21
EBIT (Operating Profit) 4514.66 6,224.02 6639.56 5798.06 6485.91
Interest 159.59 112.20 113.39 113.23 370.88
Interest Coverage Ratio 28.29 55.47 58.56 51.21 17.49
Source: from Table 04 of this Chapter

Graphical Presentation of Interest Coverage Ratio

TATA MOTORS MAHINDRA & MAHINDRA
0.63, Mar Mar 2021, Mar 2017,
1.03, Mar
-0.33, Mar 2021 17.49 28.29
2017
2020
Mar 2020, Mar 2018,
51.21 55.47

1.9, Mar
2018
2.75, Mar
2019
Mar 2019,
58.56

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Findings: The Interest Coverage Ratio of Tata Motors are covering more areas at first from
March 2017 to March 2019 but in March 2020 it suddenly dropping and covering less areas
throughout the timeline. But in case of Mahindra & Mahindra’s Interest Coverage Ratios
they are covering similar portions throughout the timeline. But in March 2019 the both
companies Interest coverage ratio is highest and covering more area’s comparing to other
years.

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Chapter 04
Conclusion
After the comparative financial statement analysis of Tata Motors and Mahindra
and Mahindra. I have come up with the following conclusions.

1. The Net Sales of Tata Motors is lower at the beginning but in Financial Year
2017-18 and 2018-19, We found large number of improvements. But at the
end the Net Sales of Tata Motors decreases. There are some slight up & downs
in the Net Sales of Mahindra & Mahindra but it was pretty much in the similar
level.

2. The Net Profit of Tata Motors is increasing at first, but it suddenly decreases at
a highly rate in the financial year 2019-20. On the other hand, Mahindra &
Mahindra’s Net Profit is maintaining a similar level at the beginning of the past
3 years but from the financial year 2019-20 it was started to decreasing.

3. The amount of Shareholder’s fund of Mahindra & Mahindra are increasing

gradually over the past 5 years. But in case of Tata Motors there are some
slight up and downs in their Shareholder’s Fund.

4. The analysis of return on assets and total asset turnover ratios shows ups &
downs over the years under this study.

5. The analysis of current ratio expresses current assets & current liabilities ups
& downs over the years under this study.

6. The analysis of dividend payout ratio show that there are significant ups and
down in case of annual interest paid but the interest coverage ratio is being
increased gradually.

7. We find there are significant ups and downs in long term debt and also debt
equity ratio during last five years.

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Bibliography
While making this project, comparative financial statement analysis between
Tata Motors and Mahindra & Mahindra. I have used secondary source of data to
get the project related information that I needed. I have used this book “6th
SEMESTER B.COM SCROLLER (Hons.) by Prof. Alok Kr. Mukherjee” also I have used
some websites to get the information of the selected companies. The Websites
are as follows:

➢ www.wikipedia.com
➢ www.investopedia.com
➢ www.moneycontrol.com
➢ www.economictimes.indiatimes.com

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