Balance Sheet Analysis of Tata Motors

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Balance Sheet Analysis of Tata Motors

By | September 2010
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Analysis of Balance Sheet
As the Indian economy bounced back and grew by 7.2% in 2009-10, the automotive industry in India recorded steady growth in the first two quarters and recorded significant growth in the last two quarters of 2009-10. The commercial vehicle industry grew by 40.1% compared to the decline of 17.4% in 2008-09. The passenger vehicle industry, which had showed a decline of 0.5% in the previous year, grew by 24.8% in 2009-10. With single digit inflation, the monetary policies of the Government were relaxed leading to a fair availability of vehicle finance in the market, albeit at costs higher than the historical lows. Fuel costs remained fairly stable during the year benefited by the stable international crude oil prices. The GDP grew by 7.4% in 2009-10 as compared to preceding year. The commodity prices also remained stable for most part of the year thereby keeping the input costs in check. All these factors resulted in the Indian automotive industry posting a significant and profitable growth in 2009-10.

Consolidated Balance Sheet size (Fixed Assets, Investments and net current assets) of the Group increased to Rs.45,383.10 crores as at March 31, 2010 from Rs.42,267.17 crores as at March 31, 2009. The increase is attributable to capital expenditure for expansion and setup of new facilities and product development cost incurred by the Group. Net Fixed Assets including Capital Work-in-Progress increased to Rs.38,506.33 crores as at March 31, 2010 as compared to Rs.35,733.33 crores as at March 31, 2009. The gross fixed assets have increased by Rs.3,917.47 crores. The increase is mainly in TML. There was decrease in Net fixed assets of Rs.788.91 crores due to sale of controlling stake in Telcon, which is now accounted as an associate. Investments increased to Rs.2,219.12 crores as at March 31, 2010 as compared to Rs.1,257.40 crores as at March 31, 2009. The movement (net) of Rs.961.72 crores represents decrease due to sale of investments of...
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