A COMPARATIVE STUDY ON THE FINANCIAL

PERFORMANCE OF TATA MOTORS AND

MAHINDRA AND MAHINDRA MOTORS

PROJECT REPORT

by

SHAHBAZ KUTTIYALA PURATH

SHAIK SHAFAAQ GULSHARJAN
SIDHARTH RAVI
KISHAN N M(S)
(USN Number(s):20BCHR0321
20BCHR0322
20BCHR0334
20BCHR0256)

School of Commerce, JAIN (Deemed-to-be

University) November & 2022
 BONAFIDE CERTIFICATE

This is to certify that this project report entitled “A

COMPARATIVE STUDY ON THE FINANCIAL
PERFORMANCE OF TATA MOTORS WITH MAHINDRA
AND MAHINDRA MOTORS” submitted to School of Commerce,
JAIN (Deemed-to-be University), is a bonafide record of work done
by “SHAHBAZ KUTTIYALA PURATH, SHAIK SHAFAAQ
GULSHARJAN, SIDHARTH RAVI AND KISHAN N M” under
my supervision from “July 7th,2022” to “October 31st,2022”

Dr Muralidhar L B
Assistant Professor

Dr Muralidhar L B
Assistant Professor
Department of BMS
Jain Deemed to be University

Place: Bengaluru
Date: 10/11/2022
 Declaration by Author(s)

This is to declare that this report has been written by me/us. No part
of the report is plagiarized from other sources. All information
included from other sources have been duly acknowledged. I/We are
aware that if any part of the report is found to be plagiarized, I/we shall
take full responsibility for it.

Shahbaz Kuttiyala Purath

20BCHR0321

Shaik Shafaaq Gulsharjan

20BCHR0322

Sidharth Ravi
20BCHR0334

Kishan N M
20BCHR0256

Place: Bengaluru
Date: 10/11/2022
 ABSTRACT

The profitability, long-term stability, and liquidity of a company are all strongly influenced
by its financial performance, which is also a key component of financial risk management.
Utilizing comparative balance sheet and profit & loss analysis, ratio analysis, trend analysis,
etc., one can evaluate financial performance. A company's success can be evaluated by its
financial results.

An organization's primary concerns are risk and revenue. The value of the firm will fall as a
result of any financial actions that raise liabilities; nevertheless, the value of the company will
rise as a result of financial decisions that boost profitability.

Research on financial performance is crucial to a business's success. To find patterns and

connections among financial statement products, apply the financial statement analysis.
Both internal management and external users of financial statements, such as creditors,
investors, and financial analysts, must assess a company's performance, liquidity, and
solvency.

This study aimed to investigate the financial aspects of the two Indian-made cars (TATA
Motors and MAHINDRA & MAHINDRA Motors) using various financial and statistical
approaches. The study largely uses secondary data taken from financial records. This research
project examines the short- and long-term solvency of both vehicle firms. It then evaluates
the companies' profitability and efficiency in order to compare their financial ratios during
the last three years.
 NOMENCLATURE

Current ratio Current assets/ Current liabilities

Quick ratio Liquid assets/ Quick liabilities

QR= Cash and cash equivalents +

marketable securities + accounts receivable/
Current liabilities

QR= Current assts – inventory – prepaid

expenses/ Current liabilities
Debt to Equity ratio Total Debt / Shareholders Equity
Interest coverage ratio Earnings before interest, taxes, depreciation
and amortization / interest expenses
Gross profit margin gross profit/ total revenue
Operating profit margin Operating income/ Total revenue
Net profit margin Net Profit ⁄ Total revenue x 100
Return on Assets (ROA) Net Income / Total Assets
Return on invested capital (ROIC) NOPAT/Invested Capital
Return on Equity (ROE) Net Income / Shareholders’ Equity
Asset turnover ratio Net sales / average total sales
Inventory turnover ratio Cost of Goods Sold / Average Inventory
 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

ABSTARCT
NOMENCLATURE
CONTENTS
1 Introduction 1
1.1 Reason behind the study 1
1.2 Introduction to the automobile industry 2
1.3 Introduction to Tata Motors 4
1.4 Introduction to Mahindra and Mahindra Motors 6
1.5 Explanation of the study 8
1.6 Literature Review 9
1.7 Review of the local literature 9
1.8 Review of the international literature 12
1.9 Objectives 13
1.10 Scope of the study. 13
2 Approach used 14
2.1 Research methodology 14
2.2 Constraints of the data 14
3 Results and Discussion 15
3.1 Data interpretation and analysis 15
3.2 Major Findings 60
4 Conclusions and Recommendations 61
4.1 Discussion 61
4.2 Conclusion 61
5 Appendices 62
6 References 70
 1- INTRODUCTION

1.1 -REASON BEHIND THE STUDY

Finance is the foundation of an utilization. It is cash.” For those who are properly referred to
as the “science behind a company’s efficient operations. Finance controls all business,
choices, and policies. The administration of finances is one of the most important aspects of
business. Financial management is the strategic arranging, directing, and controlling of
financial endeavours in a company or institute. Analysts and investors analyse companies
within the same industry or compare entire industries or sectors using financial output.

Profitability and risk are two important factors of a firm. The solvency ratio, profitability
ratio, and efficiency ratio were the three ratio parameters in this study to calculate financial
performance, whereas a company’s financial success is normally measured by a set of ratios
or percentages. The process of looking at and evaluating a company’s financial accounts, like
as the profit and loss statement or balance sheet, in order to have a better knowledge of the
company’s financial situation and to make better decisions. Financial statement analysis is
necessary in order to make the financial data contained in financial statements more valuable.
Determine the viability, stability, and profitability of a company through financial analysis.
The economic actions and events that have an impact on a firm and that can be translated into
accounting numbers are represented in the financial statements.

Profit is the company’s forward-moving force. Any company should be profitable enough to
endure and grow over time. The ability to turn a profit from all of an entity, corporation, firm,
or enterprise’s commercial operations is what is meant by “profitability.” It illustrates how
management can profit successfully from all available business capital.

The automobile sector’s forward and backward connections with other important economic
sectors have a significant multiplier effect on industrial growth. The industry has changed
during the year, contending with issues like transition, consolidation, restructuring, and
environment adaptation.

1
1.2- INTRODUCTION TO THE AUTOMOBILE INDUSTRY

One of the key forces behind economic growth in India is the automobile industry, which
produces both vehicles and the parts that go into them. Due to its strong integration with
other industrial sectors, it plays a vital role in driving manufacturing GDP, exports, and
employment. Due to its traditional capabilities in casting, forging, precision machining,
fabrication (grinding, polishing, welding), cost advantages (due to the supply of inexpensive
skilled labour), and significant foreign direct investment (FDI) inflows, this industry has
grown significantly.

The design, production, manufacture, marketing, and sale of engine-powered automobiles are
all activities that are carried out by a variety of businesses and organizations that make up the
automotive industry. It is one of the most lucrative sects in the entire globe. With
approximately 3.99 million passenger and commercial vehicle sales in 2019, India surpassed
Germany to become the fourth-largest auto market in the world. India was the world’s
seventh-largest commercial vehicle manufacturer in 2019. India is anticipated to surpass
Japan as the third-largest vehicle market in the world by 2021.

Due to a growing middle class and young population, the two-wheeler segment currently
controls the majority of the market in terms of volume. The sector also expanded as a result
of firms’ growing interest in discovering rural markets. India is a significant vehicle exporter
with promising possibilities for future export growth. Furthermore, a number of government
and industry-led initiatives are anticipated to push India to the top of the global two- and
four-wheeler markets by 2020.

Domestic auto manufacturing increased between fiscal years 2016 and 2020 at a compound
annual growth rate (CAGR) of 2.36 percent, with 26.36 million automobiles manufactured in
FY20. In the fiscal year 2020, domestic auto sales climbed at a compound annual growth rate
(CAGR) of 1.29 percent, with 21.55 million vehicles sold.

2
The car business gains from a variety of things, such as low-cost steel production and R&D
facilities. In addition to providing professional and unskilled workers with good investment
prospects, the industry also costs skilled personnel but also offers jobs both directly and
indirectly. It is predicted that the Indian automotive sector, which includes component
production, will be valued Rs. 1618 trillion by 2026.

3
1.3- INTRODUCTION TO TATA MOTORS

TYPE Public

PARENT TATA Group

INDUSTRY Automotive

FOUNDED 1945

FOUNDER J.R.D. Tata

HEADQUARTERS Mumbai, Maharashtra, India

Natarajan Chandrasekaran ( Chairman )

KEY PEOPLE Guenter Butschek ( CEO )

AREA SERVED Worldwide

Automobiles, Luxury and Commercial vehicles, SUVs, Trucks

PRODUCTS and Automobile parts

WEBSITE www.tatamotors.com

Tata Motors Ltd., formerly known as TELCO (which stands for Locomotive Company), is a
component of the Tata Group and an Indian multinational automobile manufacturer with
headquarters in Mumbai, Maharashtra, India. The volume of production is ranked 17th
worldwide. On the Fortune India 500 list of the top companies in India in 2020, it company

4
was the fourth-largest truck maker and the sixth-largest automotive general bus manufacturer.
Its offerings include passenger cars, trucks, vans, coaches, buses, and military vehicles.

The firm was founded in 1945 to build locomotives, and in 1954, as part of a partnership with
Daimler-Benz AG that lasted until 1969, it developed its first commercial vehicle. Tata
Motors became the first Indian company to show that it was capable of manufacturing a
commercially successful domestic vehicle with the debut of the Tata Sierra in 1991.

Through a vast global network of 76 subsidiary and associate firms, including Jaguar Land
Rover in the United Kingdom and Tata Daewoo in South Korea, Tata Motors, India’s largest
automaker and a member of the USD 113 billion Tata Group, operates in South Korea,
Thailand, the United Kingdom, Indonesia, and South Africa.

5
1.4- INTRODUCTION TO MAHINDRA & MAHINDRA

TYPE Public

PARENT Mahindra Group

INDUSTRY Automotive

FOUNDED 1945

FOUNDERS M.G. Mohammed, J.C. & KC Mahindra

HEADQUARTERS Mumbai, Maharashtra, India

Anand Mahindra ( Chairman )

KEY PEOPLE Pawan Kumar Goenka ( CEO & MD )

AREA SERVED Worldwide

PRODUCTS Automobiles, Commercial vehicles and Motorcycles

WEBSITE www.mahindra.com

Indian automaker Mahindra & Mahindra Ltd. (M&M) produces vehicles. It is the biggest
tractor manufacturer worldwide as well as one of India’s biggest automakers. In 2020,
Mahindra & Mahindra was listed as the 17th-best company in India by Fortune India 500.
Tata Motors and Maruti Suzuki are two of its main competitors in India.

6
Brothers K. C. and J. C. Mahindra, along with Malik Ghulam Mohammed, established
Mahindra & Mohammed as a steel trading company in Ludhiana in 1945. After India’s
independence and the creation of Pakistan, Mohammed relocated to Pakistan. The company’s
new name, Mahindra & Mahindra, was adopted in 1948.

It identified a financial opportunity in expanding into manufacturing and selling larger MUVs
military vehicles, starting in 1947 with the Willys Jeep manufactured under licence in India.
The company originally produced Jeeps for India’s market before branching out to include
make light commercial vehicles (LCVs) and farm tractors. Mahindra & Mahindra has
established itself as a significant participant in the utility vehicle production and branding
sectors of the Indian automotive industry with their flagship UV Scorpio.

7
1.5- EXPLANATION OF THE STUDY

By examining financial outcomes over several years, this study will assist business
executives in guiding their organization in the appropriate direction. The financial capability
of the organization to meet its operational goals will be ensured by closely monitoring
important components of the balance sheet and income statement. Otherwise, a company can
run out of money and be forced to stop paying its debts.

Ratio analysis is a tool that investors can use to evaluate a company’s financial statements in
terms of risk, solvency, profitability, and performance. Investors frequently financial ratios to
contrast businesses in the same sector.

8
 1.6- Literature Review

1.7- Review of the local literature

a) Reema Monga, Deepti Aggrawal, and Jagvinder Singh (2021). Utilization of AHP to
assess an industry's financial performance. This study examines the AHP's potential
application in analysing the Indian industry's financial performance. The four metrics
covered in this chapter are profitability indicators, solvency indicators, growth and
efficiency indicators, and liquidity indicators. In this application, certain criteria are rated
together with their sub-criteria, and the primary performance indicator is selected as a
result.

b) Gupta, Shweta, and Ms. Jain (2020). A REPORT ON THE FINANCIAL

PERFORMANCE OF THE INDIA IT SECTOR. Examining the financial performance of
Indian IT companies in terms of liquidity, solvency, operation, and profitability is the
goal of this study. to comprehend the risk-return pattern and evaluate prospective projects
in the market. The sector has consistently prospered financially and has maintained
average or above average output in the face of other economic and political difficulties in
the country.

c) Ramya, N. (2020). A STUDY OF INDIAN OIL CORPORATION LIMITED'S

FINANCIAL PERFORMANCE ANALYSIS. The major objective of this study is to
evaluate the firm's liquidity and profitability situation using techniques like ratio analysis.
Different metrics, including the current ratio, liquid ratio, absolute liquid ratio, net profit
ratio, gross profit ratio, operating ratio, and operating profit ratio, have been used to
assess the company's financial efficiency. To help with understanding the study, the
results are explained in tables. This 20 analysis contains justifications, judgments, and
suggestions to aid the company in improving performance.

d) Deepak Kumar, Neelam Gulati, and Deepak Adhana (2020). Analysis of Financial
Performance: A Comparison of AXIS Bank and ICICI Bank. This comparison compares
the financial performance of Axis Bank with ICICI Bank using Net Profit and numerous
criteria, including return on equity, total debt to owners' funds, capital adequacy, and total

9
 income to capital employed, among others. Axis Bank outperforms ICICI Bank in terms
of return on equity, but ICICI Bank outperforms Axis Bank in terms of net profit.

e) Singh, Anju, and Madhvi Solanki (2020) A comparison of the financial results of Bank of
Baroda vs HDFC Bank. In this study, the financial performance of Bank of Baroda and
HDFC Bank is compared. The seven-year research period runs from 2013–2014 through
2019–2020. The research's findings indicate that a private sector bank (HDFC Bank) has
greater financial efficiency than a public sector bank (Bank of Baroda). Therefore, it may
be stated that Bank of Baroda needs to focus more on its policies, strengths, and
shortcomings than HDFC Bank did.

f) Maruti, Suzuki, Raja Narayanan, and Sandhir Sharma (2019). Performance in terms of
money at Maruti Suzuki. Journal of International Management and Business. The Marathi
Suzuki Group's financial performance will be examined in this study utilising financial
instruments to assess the performance of the business. The study focuses on the overall
economic status of the Maruti Suzuki corporation over a specific time period based on the
stated elements. The study examines the financial standing of Maruti Suzuki India
Limited as of a five-year evaluation and the related Profit and Loss Account.

g) Ranjit, Paswan (2016). A Comparative Study of the Financial Performance of Indian

FMCG Companies. International Journal of Management, ANVESHAK. The study
examines a select Indian fast-moving consumer goods (FMCG) companies' financial
outcomes. The two top FMCG companies in the research are ITC and Hindustan Unilever
Limited (HUL). The article analyses the two firms' financial outcomes experimentally in
terms of liquidity and profitability. The objective was accomplished using a variety of
accounting ratios and statistical techniques like average, standard deviation, and
correlation.

h) Anupa, Jayawardhana (2016). Adidas AG Financial Performance Analysis. Journal of

European Business and Management The financial data were examined using horizontal,
vertical, pattern, and ratio analysis; improvements were suggested to improve cash flow,
enhance dividends, and reduce liabilities. To find trends, the most recent result is
contrasted with the company's financial statements for the previous five years, starting in

10
 2010. Setting goals for cost-cutting should be done along with improving employee job
performance and outsourcing options.

i) Dr Rohit, Bansal (2015). An analysis of the financial performance of a few Indian IT

companies from 2010 to 2014. The Accounting Research & Audit Practices Journal of
IUP. This study paper's objective is to evaluate the accounting and financial performance
of top Indian IT companies. The financial statements and income statements for Infosys,
Tata Consultancy Services (TCS), Infosys, and Tech Mahindra were collected from
databases like Money Control, Yahoo Finance, etc. Based on variables including return
on shareholder equity, current ratio, debtor turnover ratio, earnings per share, and, most
significantly, debt equity ratio, it is determined that Infosys is the company that investors
are most interested in.

j) Dr. Shrabanti, pal (2012). Comparative analysis of the financial performance of

globalised Indian steel companies. Journal of Accounting and Financial Management
Research International (IJAFMR). This study looks at the financial performance of Indian
steel businesses to see if efficiency, liquidity, profitability, and leverage are all correlated
in a linear fashion. This paper asserts that financial indicators including liquidity,
profitability, operation, and financial leverage have an impact on total profitability.
Therefore, in order to increase profitability, businesses should concentrate on enhancing
overall liquidity, solvency, and productivity; otherwise, the companies' profitability
would be impacted in various ways.

11
1.8-Review of the international literature

a) Md. Saikat, Hosen (2018). Pharmaceutical Industry Financial Performance Analysis in

Bangladesh. The thesis investigates a Bangladeshi pharmaceutical company's success.
Analysis of the ratios of four Bangladeshi pharmaceutical companies is the main
objective (Beacon, ACI, GSKSmithkline, and Square Pharmaceutical Limited). The four
organisations performances are compared using liquidity ratios, asset management ratios,
profitability ratios, market value ratios, and debt management ratios, and the best
performance is selected.

b) Teodor, Hada, Nicoleta Bărbuţă-Mişu, Mihai Căruţ, and Avram Teodora (2017).
ANALYSIS OF FINANCIAL PERFORMANCE FOR PUBLIC INSTITUTIONS. The
study examines the qualities of public institutions, the notion of success in general, and
the performance of public institutions in particular. In addition, the patrimonial result is
suggested as a performance indicator for public institutions once the makeup of their
patrimonial outcome accounts is looked at. The final section of the essay discusses a case
study concerning City Hall's financial performance review.

c) Suh, Won-S., and Yoon, Young-Gyu (2012). A Comparative Study of the Financial
Performance of Hospitals in Multi-Hospital Systems health management and policy. This
report compares and contrasts the effectiveness of multi-hospital systems and independent
hospitals. The results of this study, which examined 425 acute-care hospitals in Korea,
revealed that multi-hospital networks and market circumstances, which are both regarded
as advantages for hospitals, had a detrimental effect on their financial performance. The
16 discrepancy suggests that multihospital systems are not more effective at cost control
and may be the result of increased staffing and operating costs.

d) Ika, Siti Rochmah, and Norhayati Abdullah (2011). A COMPARISON OF THE

FINANCIAL PERFORMANCE OF CONVENTIONAL AND ISLAMIC BANKS IN
INDONESIA. The article compared and assessed the financial efficiency of Islamic banks
in comparison to conventional banking before and after Indonesia's Islamic Banking Act
No. 21/2008 was passed. Several financial ratios that were broken down into profitability,
liquidity, risk, solvency, and productivity were used to calculate financial performance.
The results of this study show that, with the exception of liquidity ratios as determined by
the current ratio, there is no appreciable difference in the financial efficiency of Islamic
banks and conventional banks, despite the significant growth in the total number of
Islamic banks, particularly after 2000.

e) Ozgur, Turetken (2004). A Comparative Study on Predicting Financial Performance of

Turkish Publicly Traded Firms The purpose of this study is to forecast the financial
outcomes of publicly traded Turkish enterprises using publicly available financial data.
Multiple discriminant analysis and neural networks are two alternative methodologies that
are compared for this challenge in terms of prediction accuracy. Additionally, it was
found that both techniques predict mediocre and subpar performers more accurately than
top performers, with no statistically significant differences in prediction accuracy.

12
1.9- Objectives

a) To evaluate both organizations short-term solvency positions during the last three
years.
b) To evaluate both organizations long-term solvency positions during the last three
years.
c) To examine both organizations profitability status over the previous three years.
d) To evaluate both firms' performance over the previous three years.
e) To identify the company that has the best opportunity for future investment

1.10- Scope of the Study

This study aims to examine the financial performance of two Indian automakers. One of the
key drivers of the country's GDP growth is the Indian automobile sector (Gross Domestic
Product). Emerging technology, COV-19, and safety standards are just a few of the reasons
that have contributed to its evolution. Another well-known fact is that the advancement of
electronic cars is paving the way for their manufacture. As a result, it seems profitable to
invest in such companies.

13
 2- Approach used

2.1- Research methodology

In this study, a method of research called analytical analysis was employed. The financial
performance of Mahindra & Mahindra Motors and Tata Motors has been determined using a
variety of quantitative factors. Financial tools, such as ratio analysis, and statistical tools,
such as mean, standard deviation, and coefficient of variation, are employed in this study.
The financial performance of Mahindra & Mahindra Ltd. and Tata Motors has been the main
subject of this study's comparison, measurement, and evaluation. We chose these two
businesses because they are both car manufacturers with roots in India and have long
dominated that country's automotive market. The information used in this study was gathered
from secondary sources. The study uses data from the previous 3 years. In order to compare
Mahindra & Mahindra with Tata Motors, certain tools and ratios have been used in this study.

The main reason we selected the years 2019, 2020, and 2021 is that the information for these
years is still relevant and can be used for research. Since this year is already underway and all
information and results won't be available until March 2022, we didn't choose that year.
Investors will be able to make future selections regarding the companies we have selected,
TATA Motors and Mahindra and Mahindra Motors, in this year 2019, 2020, and 2021. And
make a wise decision on which specific share is a good investment for the future.

2.2- Constraints of the data

There are four major problems with this report that could be fixed by additional investigation.
The research initially mostly relies on the company's annual reports. Second, some of the
secondary data obtained through the company's annual report might have been made up.
Thirdly, this investigation's time span is set at three years. Last but not least, the world is
dynamic and always changing, thus there is a possibility that the business will operate well or
poorly in 2022. The results of the past years' events may be altered in the current year 2022.

14
 3- Results and Discussion

3.1- Data interpretation and analysis

Understanding the use of financial ratios:

Investors use financial ratios as a tool to examine and learn more about the financial history
of a firm or an entire industry. Numbers from the balance sheet, income statement, and cash
flow statement are used to compute financial ratios. The financial ratio is a description of a
company's economic situation in terms of earnings, liquidity, leverage, and market value
rather than a calculation. A ratio can act as a sign, warning sign, or hint for a variety of
problems.

Ratio analysis is a mathematical technique for analysing a company's financial documents,

such as the balance sheet and income statement, to gather knowledge about its liquidity,
operational effectiveness, and profitability. Fundamental equity research is built on ratio
analysis.

In order to get insights into profitability, liquidity, operational effectiveness, and solvency,
ratio analysis examines line-item data from a company's financial statements. Ratio analysis
allows you to compare one firm to another within the same industry or sector and track how
one company has changed over time. External parties who set standards frequently associated
with risk may also demand ratio analysis. While ratios can provide helpful information about
a firm, they should be used in conjunction with other measures to provide a more complete
picture of that company's financial situation.

In order to get insights into profitability, liquidity, operational effectiveness, and solvency,
ratio analysis examines line-item data from a company's financial statements. Ratio analysis
allows you to compare one firm to another within the same industry or sector and track how
one company has changed over time. External parties who set standards frequently associated
with risk may also demand ratio analysis. While ratios can provide helpful information about
a firm, they should be used in conjunction with other measures to provide a more complete
picture of that company's financial situation.

15
 Evaluation of Tata motors and Mahindra and Mahindra motors for 3 years

1) For evaluating the Short-term solvency of the companies:

A) Liquidity Ratios
A crucial group of financial indicators known as liquidity ratios is used to assess a debtor’s
capacity to settle current debt commitments without the need for outside funding. The
measurement of indicators such as the current ratio, quick ratio, and operating cash flow ratio
allows us to calculate liquidity ratios, which assess a company’s capacity to satisfy debt
obligations as well as its margin of safety.

a) Current ratio
A liquidity ratio called the current ratio assesses a company’s capacity to settle short-term
debts or those that are due within a year. It explains to investors and analysts how a business
can use its present assets to the fullest extent possible to pay down its current liabilities and
other payables.
Current assets and current liabilities, two fundamental measurements on a company’s balance
sheet that are disclosed in its quarterly and annual financial reports, are used to calculate the
current ratio. On a company’s balance sheet, current assets are defined as cash, accounts
receivable, inventory, and other assets that are expected to be liquidated or converted into
cash in less than one year. Current liabilities include things like accounts payable, salaries,
taxes owed, 27 short-term debts, and the current portion of long-term debt.

Current Ratio of TATA motors and Mahindra and Mahindra motors:

Companies 2019 2020 2021

TATA Motors 0.57 0.52 0.60

Mahindra & Mahindra 1.26 1.38 1.34

Motors

16
 Current Ratio
1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2019 2020 2021

TATA Motors Mahindra and Mahindra Motors

Interpretation:

The ratio increases as the corporation becomes more liquid. The majority of organisations are
in good financial shape if their current ratio is 2, which is the most typical reasonable value.
Mahindra and Mahindra Motors outperforms Tata Motors in terms of operating cycle
performance, or the capacity to turn output into cash. If its receivables are not paid on time or
if its inventory turnover rate is too high, Tata Motors may experience cash flow issues.
A current ratio below 1.00 indicates that the company’s liabilities outweigh its assets by a
larger margin which the TATA Motors is facing. In this situation, it is predicted that cash and
other short-term assets will be converted into cash during this time. Various events could
have a negative effect on the present ratio, despite the fact that a value of this ratio may be
worrying.

b) Quick ratio
The quick ratio assesses a company’s capacity to satisfy its short-term obligations using its
most liquid assets and serves as an indicator of its short-term liquidity position. It is also
known as the “acid test ratio” because it shows how quickly the corporation can use its near-

17
cash assets (assets that can be swiftly converted to cash) to settle its present liabilities. A fast
test intended to yield immediate findings is referred to as a “acid test” in slang.
By dividing a company’s most liquid assets, such as cash, cash equivalents, marketable
securities, and accounts receivable, by its overall current obligations, the quick ratio is
determined.

Quick Ratio of TATA motors and Mahindra and Mahindra motors:

Companies 2019 2020 2021

TATA Motors 0.36 0.37 0.42

Mahindra & Mahindra 0.99 1.07 1.08

Motors

Quick Ratio
1.2

0.8

0.6

0.4

0.2

0
2019 2020 2021

TATA Motors Mahindra and Mahindra Motors

Interpretation:

The greater a firm’s liquidity and financial health, the higher the ratio result; the lower the

18
ratio, the more likely it is that the company will have trouble making debt payments. When
analyzing the above table, it seems that for TATA Motors quick ratio was just starting to
increase year by year but with minor changes,whereas for Mahindra and Mahindra Motors,
its ratio stood nearly to 1% during 2019 and then continued to grow up year after year.
Having ratio more than 1% for Mahindra and Mahindra Motors states that the company is
able to pay its liability irrespective of its Assets generating year by year.

2) For evaluating long-term solvency of the companies:

A) Leverage Ratios
A leverage ratio is one of many financial metrics that evaluates a company's capacity to fulfil
its financial commitments.
A company's mix of operational expenses can be measured using a leverage ratio to see how
changes in output will impact operating profits.
A company's mix of operational expenses can be measured using a leverage ratio to see how
changes in output will impact operating profits.

a) Debt to equity Ratio

The debt-to-equity ratio is a financial metric that shows how much debt and equity were
utilised to finance the assets of a company. The ratio, often known as risk, gearing, or
leverage, is closely related to leveraging. If the company's debt and equity are publicly
traded, the ratio can also be calculated using market values for both, or by using a
combination of book value for debt and market value for equity. The two components are
frequently taken from the firm's balance sheet or statement of financial position (so-called
book value).

Debt to equity ratio of TATA Motors and Mahindra and Mahindra Motors:

Companies 2019 2020 2021

TATA Motors 0.79 1.14 1.14
Mahindra & Mahindra 0.07 0.09 0.21
Motors

19
 Debt to Equity Ratio
1.2

0.8

0.6

0.4

0.2

0
2019 2020 2021

TATA Motors Mahindra and Mahindra Motors

Interpretation:

Tata Motors' debt-to-equity ratio is 0.79 in 2019; it rises to 1.14 in 2020; it stays the same in
2021; and it is 1.14. Mahindra & Mahindra Motors' debt-to-equity ratio in 2019 is 0.07; in
2020 and 2021, it increases to 0.09 and 0.21, respectively.

b) Interest coverage Ratio

The interest coverage ratio gauges a company's capacity to make its debt payments on time.
EBIT or EBITDA divided by the total interest expense might be used to determine it. The
ability of a company to pay the interest on outstanding debt is gauged using the interest coverage
ratio. Divided by interest expense during a specific time period, a company's earnings before interest
and taxes (EBIT) yields the interest coverage ratio.
This enables you to comprehend your margin of safety for making interest-only debt payments over a
specific time frame. The interest coverage ratio formula is frequently used by creditors, investors, and
lenders to assess the risk associated with providing money to a company.

Interest coverage ratio of TATA Motors and Mahindra and Mahindra Motors:

Companies 2019 2020 2021

TATA Motors 1.45 (2.33) (0.932)
Mahindra & Mahindra 0.70 (0.06) 4.31
Motors

20
 Interest coverage Ratio
5

0
2019 2020 2021
-1

-2

-3

TATA Motors Mahindra and Mahindra Motors

Interpretation:

Tata Motors' interest coverage ratio in 2019 is 1.45, in 2020 it is 2.33, and in 2021 it is 0.932,
which are below 1,. Mahindra & Mahindra Motors' interest coverage ratio in 2019 was 0.70,
which is below 1, in 2020 it was 0.06, also below 1, and in 2021 it was 4.31.

3) For evaluating the Profitability of the companies:

A) Profitability Ratios
Using information at a single point in time, profitability ratios are a class of financial
measurements that are used to evaluate a company's capacity to generate profits in relation to
its revenue, operating costs, balance sheet assets, or shareholders' equity over time.
Efficiency ratios, which evaluate how effectively a corporation uses its resources internally to
generate income, can be contrasted to profitability ratios (as opposed to after-cost profits).

a) Margin Ratios
Margin ratios quantify an organization’s capacity to convert sales into profits. Without a
comparison, stand-alone data are in some ways meaningless because they simply offer a
glimpse. Applications for margin ratios include valuation, credit analysis, and business

21
performance. Margin ratios show how successfully a business produces profit and value for
shareholders. However, whether compared to outcomes of other companies, the company’s
past performance, or the industry average, higher ratio results often reveal considerably more
information. The profitability of an organization is evaluated using a variety of profit
margins, including gross margin, operating margin, pretax margin, and net profit margin. As
layers of extra costs, including taxes, operational costs, and cost of goods sold, are taken into
account, the margins are reduced.

i) Gross Profit Margin:

By assessing the amount of money left over from product sales after deducting the cost of
goods sold, analysts can determine the financial health of a company using the gross profit
margin indicator. The gross profit margin, also known as the gross margin ratio, is typically
represented as a percentage of sales. The dramatically fluctuating gross profit margin of a
business may be a symptom of subpar management and/or subpar goods. On the other hand,
such variations might be acceptable when a business makes significant operational changes to
its business model; in such a scenario, brief volatility shouldn’t raise any red flags.

Gross Profit Margin of TATA motors and Mahindra and Mahindra motors:

Companies 2019 2020 2021

TATA Motors 2.66 (9.16) (0.91)
Mahindra & Mahindra 8.91 7.86 9.48
Motors

22
 Gross profit Margin Ratio
15

10

0
2019 2020 2021

-5

-10

-15

TATA Motors Mahindra and Mahindra Motors

Interpretation:

A negative gross profit margin for TATA means that production expenses were higher than
total sales, which was to be expected because of the global pandemic. Whereas Mahindra &
Mahindra seems to have controlled their production costs to have a steady gross profit
margin.

ii) Operating Profit Margin:

A company’s operating profit margin, often known as a performance ratio, measures the
portion of profit generated by its operations before deducting taxes and interest costs. It is
computed by taking the operating profit and dividing it by the total revenue. The operating
margin shows how effectively a business can turn a profit from its primary activities. After
taking into account variable costs but prior to paying any interest or taxes, it is expressed on a
per-sale basis (EBIT). Higher margins are preferred over lower margins, and they can be
compared between businesses in the same industry but not across different ones.

23
Operating Profit Margin of TATA motors and Mahindra and Mahindra motors:

Companies 2019 2020 2021

TATA Motors 7.13 (1.48) 4.81
Mahindra & Mahindra 12.38 12.74 14.44
Motors

Operating profit Margin Ratio

16

14

12

10

0
2019 2020 2021
-2

-4

TATA Motors Mahindra and Mahindra Motors

Interpretation:

It indicates that TATA Motors overspent on product development or that its overhead
expenses were too high, which explains why its operating profit for 2020 will be negative.
Mahindra and Mahindra Motors seems to have a healthy operating profit margin, indicating
potential for growth.

24
 iii) Net Profit Margin:

The amount of net income or profit generated as a percentage of revenue is expressed as the
net profit margin, or simply net margin. It is the proportion of a company’s or business
segment’s net profits to revenues. Net profit margin is frequently expressed as a percentage.
A company’s net profit margin shows how much of every dollar in revenue it receives is
converted into profit. Investors can determine whether a company’s management is making
enough money from sales and whether operational expenditures and overhead expenses are in
check using the net profit margin. One of the most crucial measures of a company’s overall
financial health is its net profit margin.

Net Profit Margin of TATA motors and Mahindra and Mahindra motors:

Companies 2019 2020 2021

TATA Motors 2.91 (16.59) (7.93)

Mahindra & Mahindra 8.94 2.92 0.59

Motors

25
 Net profit Margin Ratio
15

10

0
2019 2020 2021
-5

-10

-15

-20

TATA Motors Mahindra and Mahindra Motors

Interpretation:

TATA in 2019 had a small profit, which is not great but could be considered sustainable. In
2020 they had a big loss and in 2021 they seem to be gradually recovering from the loss.
Mahindra in 2019 had desirable profit margin of 8.94, it fell to 2.92 in 2020 its sustainable
but not desirable for any business, but they seem to fall even more in 2021. It can imply that
they have inefficient pricing policies or cost structures.

b) Return Ratio
Financial ratios that indicate how well an investment is managed include return ratios as a
subset. They support the assessment of whether an investment is producing the maximum
feasible return. In general, return ratios contrast the methods for making a profit, like the
investment in stock or assets, to net income.
By dividing particular or all assets or equity by net income, return ratios make this
comparison. By comparing the percentage of return on investment to benchmarks like the
return ratios of similar investments, businesses, industries, or marketplaces, one may
determine the strength of an investment. For illustration, the term return of capital (ROC)
denotes the return of the initial investment.

26
Included in this are return on assets, return on equity, cash return on assets, return on debt,
return on retained earnings, return on revenue, risk-adjusted return, return on invested capital,
and return on capital .

i) Return on assets
A financial ratio known as return on assets (ROA) measures a company’s profitability in
relation to its total assets. ROA can be used by corporate management, analysts, and investors
to assess how effectively a company uses its resources to make a profit.
The metric is frequently represented as a percentage using the net income and average assets
of a corporation. Investors can determine the efficiency of a company by looking at its return
on assets (ROA) statistic.

Return on assets of TATA Motors and Mahindra and Mahindra Motors:

Companies 2019 2020 2021

TATA Motors 3.31 (11.64) (3.68)

Mahindra & Mahindra 9.10 2.63 0.45

Motors

27
 Return on Assets Ratio
15

10

0
2019 2020 2021

-5

-10

-15

TATA Motors Mahindra and Mahindra Motors

Interpretation:

In general, a ROA of over 5% is regarded as good, and one of over 20% as exceptional.
However, companies in the same industry should always be compared when comparing
ROAs. When comparing both the companies for 3 years, both the companies didn’t cross the
20% mark and hasn’t given much return on the invested asset, as mainly because of pandemic
hit. But if we look into good ratio, Mahindra and Mahindra Motors is doing exceptionally
well than the TATA Motors with having around 9.10% in 2019, but later it got affected with
having only 0.45, which is still better than the TATA Motors having adverse ratio,i.e,
negative 3.68%.

ii) Return on invested capital

The computation of return on invested capital (ROIC) is used to evaluate how effectively a
corporation allocates cash to successful investments. The ROIC calculation involves dividing
invested capital by net operating profit after tax (NOPAT).
ROIC reveals how effectively a business is its capital to produce profits. If a firm uses its
invested capital successfully, it can be determined by comparing its ROIC to its weighted

28
average cost of capital (WAAC). The worth of other companies can be determined using the
return on invested capital as a standard.

Return on invested capital of TATA Motors and Mahindra and Mahindra Motors

Companies 2019 2020 2021

TATA Motors 11.57 (7.18) 0.37

Mahindra & Mahindra 16.86 13.26 12.35

Motors

Return on invested capital

20

15

10

0
2019 2020 2021

-5

-10

TATA Motors Mahindra and Mahindra Motors

Interpretation:

Businesses with high rates of return on invested capital are more likely to keep using capital
wisely to produce results consistent with the past. The Mahindra and Mahindra has invested
carefully which has helped them to gain a ratio of 16.86% for long term wealth creation.
A greater ratio is preferable Mahindra and Mahindra Motors as it ensures that every rupee of
invested capital results in more rupees of benefit.
Investors in Mahindra and Mahindra Motors examine the ratio to determine the efficiency

29
with which the business its resources and its long-term funding strategies.
The assets’ returns should constantly outpace the interest rate used to finance them.
Because it shows that Mahindra and Mahindra Motors assets performed better when long-
term funding was taken into account, Mahindra and Mahindra Motors’ Return on Invested
Capital, which is a measure of long-term profitability, is higher than Tata Motors’.

iii) Return on Equity

A metric of financial performance known as return on equity (ROE) is obtained by dividing
net income by shareholders’ equity. ROE is referred to as the return on net assets since
shareholders’ equity is determined by subtracting a company’s debt from its assets.
ROE is regarded as a barometer of a company’s profitability and how well it produces profits.
The management of a firm is more effective at generating income and growth from its equity
financing the higher the ROE.

Return on Equity of TATA Motors and Mahindra and Mahindra Motors

Companies 2019 2020 2021

TATA Motors 9.11 (39.64) (12.57)

Mahindra & Mahindra 14.01 3.86 0.77

Motors

30
 Return on equity Ratio
20

10

0
2019 2020 2021
-10

-20

-30

-40

-50

TATA Motors Mahindra and Mahindra Motors

Interpretation:

This ratio assesses a company’s profitability by comparing its net earnings to the average
amount of shareholders’ equity. The return on equity (ROE) ratio determines how much
money shareholders made from their initial investments in the company. In the case of
Mahindra and Mahindra Motors, a higher ratio % indicates that management is leveraging its
equity base more effectively and that investors would receive a larger return. Tata Motors
displays a negative return on equity, indicating a loss for the business. As equity capital
decreases with each loss, if we see a high magnitude of value, it’s conceivable that the
company has been losing money for a considerable amount of time decreases with each
setback.

31
 4) For evaluating the Efficiency:

A) Efficiency Ratios
Efficiency ratios are metrics that are used in analyzing a company’s ability to effectively
employ its resources, such as capital and assets, to produce income.
The ratios serve as a comparison of expenses made to revenues generated, essentially
reflecting what kind of return in revenue or profit a company can make from the amount it
spends to operate its business.
The efficiency ratio is typically used to analyse how well a company uses its assets and
liabilities internally.It measure the ability of a business to use its assets and liabilities to
generate sales.

a) Asset turnover ratio

The ratio of a company's sales or revenues to the value of its assets is known as the asset
turnover ratio. It serves as a gauge of how well a business uses its resources to generate
money. As a result, asset turnover ratio can be used to gauge a business' performance. The
performance of the company improves as the ratio rises. The asset turnover ratio might vary
from one organisation to another. Typically, it is determined annually for a certain fiscal year.

Asset turnover ratio of TATA motors and Mahindra and Mahindra motors:
Companies 2019 2020 2021
TATA Motors 113.61 70.18 0.47
Mahindra & Mahindra 101.74 90.07 75.58
Motors

32
 Asset turnover Ratio
120

100

80

60

40

20

0
2019 2020 2021

TATA Motors Mahindra and Mahindra Motors

Interpretation:

Asset turnover ratio of TATA motors are 113.61, 70.18 and 0.47 in 2019, 2020 and 2021
respectively. Asset turnover ratio of Mahindra Motor are 101.74,90.07, and 0.21 in 2019,
2020 and 2021.
In case of assets the efficiency ratios compare an aggregated set of assets to sales, or the cost
of goods sold. During Covid-19 times many companies were badly hit. Sales have seen a
sharp decline due to travel restrictions, social distancing, restrictions on sale of some
commodities and customers resorting to budget cuts and putting projects on hold.
After covid-19 i.e 2021 Tata motors ratio got lowered to massive downwards by 0.47,
whereas Mahindra motors after covid-19 has only decreased to 75.58 from 90.07.By seeing
the above trend, it is clear that Mahindra Motors is doing good and in future it will increase
its sales in further new technologies.

33
 b) Inventory turnover ratio
Inventory turnover is a financial ratio showing how many times a company turned over its
inventory relative to its cost of goods sold in a given period.
A company can then divide the days in the period, typically a fiscal year by the inventory
turnover ratio to calculate how many days it takes to sell its inventory, on average.
The inventory turnover ratio can help businesses make better decisions on pricing,
manufacturing marketing, and purchasing. It is one of the efficiency ratios measuring how
effectively a company uses its assets.

Inventory turnover ratios of TATA motors and Mahindra and Mahindra motors:

Companies 2019 2020 2021

TATA Motors 14.84 11.46 4.54
Mahindra & Mahindra 13.96 13.38 11.39
Motors

Inventory turnover Ratio

16

14

12

10

0
2019 2020 2021

TATA Motors Mahindra and Mahindra Motors

34
Interpretation:

Inventory turnover ratio Tata motors is 14.84, 11.46 and 4.54 in 2019, 2020 and 2021
respectively.Inventory turnover ratio of Mahindra motors is 13.96, 13.38 and 11.39 in 2019,
2020 and 2021 respectively. A relatively low inventory turnover ratio may be a sign of weak
sales or excess inventory, while a higher ratio signals strong sales but may also indicate
inadequate inventory stocking.
Inventory ratios of Tata motors are reducing year by year, especially after covid-19 its
inventory ratio has dropped down from 11.46 to 4.54 showing a sign of weak sales or excess
inventory. However, Mahindra Motors' sales also have been declining as a result of a lack of
clients. Additionally, its sales were slowly dropping after COVID-19, which decreased its
inventory ratio from 13.96 -13.38, but its minor inventory changes comparing to Tata motors.
By analyzing the above two companies we can conclude that Mahindra motors have a good
inventory ratio when compared to Tata motors.

35
 Evaluation of TATA Motors for 3 years

1) For evaluating the short-term Solvency of TATA Motors:

A) Liquidity Ratios

a) Current Ratio:
Current ratio of TATA motors:
Company 2019 2020 2021

TATA Motors 0.57 0.52 0.60

Current Ratio
0.62

0.6

0.58

0.56

0.54

0.52

0.5

0.48
2019 2020 2021

TATA Motors

Interpretation:

The current ratio for Tata Motors is 0.60. It suggests that the business might find it
challenging to fulfil its present responsibilities. But comparing to previous year, it is
significantly better.
Low numbers, however, do not signify a serious issue. If Tata Motors has promising long-
term prospects, it could be able to use those prospects as collateral for a loan to cover
immediate obligations.

36
 b) Quick Ratio:
Quick ratio of TATA motors:
Company 2019 2020 2021
TATA Motors 0.36 0.37 0.42

Quick Ratio
0.43
0.42
0.41
0.4
0.39
0.38
0.37
0.36
0.35
0.34
0.33
2019 2020 2021

TATA Motors

Interpretation:

The quick ratio for Tata Motors is 0.42. It shows that the business is now unable to settle all
of its outstanding debts, but when comparing to year 2019 and 2020 which are having ratio of
0.36 and 0.37, Tata Motors is quickly paying up its liabilities which has occurred during the
pandemic.

2) For evaluating the Long term solvency of TATA Motors:

A) Leverage Ratios
a) Debt to equity Ratios

37
Debt to equity ratio of TATA motors:
Company 2019 2020 2021
TATA Motors 0.79 1.14 1.14

Debt to Equity Ratio

1.2

0.8

0.6

0.4

0.2

0
2019 2020 2021

TATA Motors

Interpretation:

A higher debt-to-equity ratio denotes greater risk, whereas a particularly low ratio could
mean that a company is not utilizing debt funding for expansion.
Due to the higher risk associated with long-term debt compared to short-term obligations, in
The debt equity ratio for Tata Motors in 2019 is 0.79, which lowers risk and also suggests
that the company is not utilizing the debt equity ratio to its advantage.
Additionally, the ratio for 2020 and 2021 remains unchanged at 1.14, which is higher than the
ratio for 2019 and denotes a higher risk.
The easiest way to compare direct competitors or track changes in a company's reliance on
debt over time is to use debt to equity ratios, which vary by industry. Investors frequently
change the debt-to-equity ratio to just take this into account.

38
 A) Interest coverage Ratio
Interest coverage ratio of TATA motors:

Companies 2019 2020 2021

TATA Motors 1.45 (2.33) (0.932)

Interest coverage Ratio

2

1.5

0.5

0
2019 2020 2021
-0.5

-1

-1.5

-2

-2.5

-3

TATA Motors

Interpretation:

A high ratio means there are sufficient profits to pay off the debt.
However, it could also indicate that the business is misusing its debt. To keep ahead of the
competition over the long run, a corporation may not invest in new products and technology
if it does not borrow enough.
Tata Motors has an interest coverage ratio of 1.45 in 2019 and 2.33 in 2020, indicating that
the company has enough profit to pay its debts. In 2021, the ratio is 0.932, which is lower
than it was in 2019 and 2020. If a company has a lower interest rate, there is a greater
likelihood that it won't be able to pay its debts, putting it at risk.

39
 b) For evaluating the Profitability of TATA Motors:
A) Profitability Ratios
a) Margin Ratios
i) Gross Profit Margin:
Gross Profit Margin of TATA motors:

Company 2019 2020 2021

TATA Motors 2.66 (9.16) (0.91)

Gross profit Margin Ratio

4

0
2019 2020 2021
-2

-4

-6

-8

-10

-12

TATA Motors

Interpretation:

As shown on the table, the gross profit margin had fallen drastically to a negative 9.16% in
the year 2020 but has gradually recovered to a negative 0.91% in 2021, no profit, but still
shows recovery. A negative gross profit margin for TATA means that production expenses
were higher than total sales, which was to be expected because of the global pandemic. Low
selling costs, low profits, fierce market rivalry, or inadequate sales promotion strategies can
all contribute to low profit margins, which imply high costs of goods sold.

40
 ii) Operating Profit Margin:

Operating Profit Margin of TATA motors:

Company 2019 2020 2021

TATA Motors 7.13 (1.48) 4.81

Operating profit Margin Ratio

8

0
2019 2020 2021
-1

-2

TATA Motors

Interpretation:

The operating profit margin has fallen to a negative 1.48% in the year 2020 and bounced
back to 4.81% in the year 2021. It indicates that TATA overspent on product development or
that its overhead expenses were too high, which explains why its operating profit for 2020 is
negative. The operating profit margin is frequently used to gauge a company's management
effectiveness since strong management may significantly improve a company's financial
performance by controlling its operating costs.

41
 iii) Net Profit Margin:

Net Profit Margin of TATA motors:

Company 2019 2020 2021

TATA Motors 2.91 (16.59) (7.93)

Net profit Margin Ratio

5

0
2019 2020 2021

-5

-10

-15

-20

TATA Motors

Interpretation:

Again, in the year 2020, the net profit margin dipped to a negative 16.59% and slightly
improved to a negative 7.93 in the year 2021. TATA in 2019 had a small profit, which is not
great but could be considered sustainable. In 2020 they had a big loss and in 2021 they seem
to be gradually recovering from the loss. When manufacturing, administrative, and financial
costs are subtracted from sales and income taxes are taken into account, it shows how much
profit is left, and this demonstrates that TATA is not in a favorable situation.

42
 b) Return Ratios
i) Return on assets

Return on assets ratio of TATA motors:

Company 2019 2020 2021

TATA Motors 3.31 (11.64) (3.68)

Return on Assets Ratio

6

0
2019 2020 2021
-2

-4

-6

-8

-10

-12

-14

TATA Motors

Interpretation:

When examining the aforementioned graph and table, it can be seen that TATA Motors had a
respectable Return on Assets of 3.31 in 2019, which is before COVID-19. This indicates that
the business was able to maximize the usefulness of its assets for each dollar invested. The
demand for their goods was sufficient because there were clients outdoors. Then their clients
were affected by the COVID. Due to lockdown, the folks were in a situation where they
couldn't drive outdoors freely. The lockdown limits then become less tight after 2020. The
clients began to drive outdoors while taking the appropriate safety procedures to covid 19. At
this point, TATA Motors' return on assets began to climb out of the red, eventually reaching a
level of about -3.68.

43
 ii) Return on invested capital

Company 2019 2020 2021

TATA Motors 11.57 (7.18) 0.37

Return on invested capital

15

10

0
2019 2020 2021

-5

-10

TATA Motors

Interpretation:

According to the table and graph above, they can produce more profit with the same amount
of invested capital. For the money they placed in the company in 2019, investors received a
return of about 11.57%. It then decreased to negative 7.18 in 2020, primarily as a result of
decreased TATA Motors automobile production and sales. However, there is an increase of
approximately positive 7.18 in 2021, which has already increased to 0.37%. This can be due
to TATA Motors' ongoing sales and production.

iii) Return on equity

Company 2019 2020 2021

44
 TATA Motors 9.11 (39.64) (12.57)

Return on equity Ratio

20

10

0
2019 2020 2021
-10

-20

-30

-40

-50

TATA Motors

Interpretation:

Tata Motors Return on equity is dismal at -12.57%. Due to the significant equity investments
that auto businesses make, ROE is a crucial financial metric. Additionally, they must incur
significant debt to fund their production and research efforts, thus their debt-to-equity ratio
needs to be assessed. At 1.14, Tata Motors has a low debt-to-equity ratio. However, when
compared to 2020, the ROE has been rising quickly, because businesses like this can't thrive
without a strong return on equity. The 2019 Return on Equity outperformed the Return on
Equity of the years that followed it.

c) For evaluating Efficiency Ratio of TATA Motors:

A) Asset turnover ratio

45
Asset turnover ratio of TATA Motors:

Company 2019 2020 2021

TATA Motors 113.61 70.18 0.47

Asset turnover Ratio

120

100

80

60

40

20

0
2019 2020 2021

TATA Motors

Interpretation:

In 2019 (pre covid-19) Tata motors had a good sale and a good asset turnover ratio of 113.61.
In 2020 due to Covid – 19 every automobile industry faced a huge fall in their sales. Tata
motors was also hit badly as its asset turnover ratio came down from 113.61 – 70.18.
In 2021 (post covid -19) many companies were struggling to gearing up their sales. But Tata
motors failed to increase its sales. To be more precise its sales were reduced compared to
2020. This affects its asset turnover ratio which dropped to 0.47.
Always higher ratio is favorable for the company, whereas lower asset turnover company is
not a favorable for the company. Analyzing 3 years assets turnover ratios of Tata motors we
can conclude that the asset turnover ratio is falling year by year that indicates the company is
not using its assets as efficiently.

46
 B) Inventory turnover ratio

Inventory turnover ratio of TATA Motors:

Company 2019 2020 2021

TATA Motors 14.84 11.46 4.54

Inventory turnover Ratio

16

14

12

10

0
2019 2020 2021

TATA Motors

Interpretation:

In 2019 (pre covid-19) Tata motors had a good sale and a good Inventory turnover ratio of
14.84. In 2020 due to Covid – 19 every automobile industry faced a huge fall in their sales.
Tata motors was also hit badly as Inventory ratio came down from 14.84 – 11.46
In 2021 (post covid -19) many companies were struggling to gearing up their sales. But Tata
motors failed to increase its sales. To be more precise its sales were reduced compared to
2020, because of this its Inventory turnover ratio also came down from 11.46 – 4.54. Higher
the inventory turnover ratio Is good for a company whereas lower inventory turnover ratio is

47
bad. Analyzing 3 years inventory turnover ratio of Tata motors we can conclude that its
inventory turnover ratio is decreasing year by year that indicates weak sales or excessive
inventory, also known as overstocking

Evaluation of Mahindra & Mahindra Motors for 3 years

1) For evaluating the short-term Solvency of Mahindra and Mahindra Motors:

A) Liquidity Ratios
a) Current Ratio:

Current ratio of Mahindra and Mahindra motors:

Company 2019 2020 2021

Mahindra & Mahindra 1.26 1.38 1.34

Motors

Current Ratio
1.4
1.38
1.36
1.34
1.32
1.3
1.28
1.26
1.24
1.22
1.2
2019 2020 2021

Mahindra and Mahindra Motors

48
Interpretation:

It is evident from the above table and graph that Mahindra and Mahindra Motors is able to
pay its short- and long-term debts without proceeding with dissolution. For these three years,
the current ratio exceeded 1%. It is obvious that Mahindra and Mahindra Motors is still
solvent and was able to settle its debts even after the pandemic ravaged the automotive
industries. This might be as a result of the corporations' increased focus on cost containment
when making cars.

b) Quick Ratio:

Quick Ratio of Mahindra and Mahindra motors:

Company 2019 2020 2021

TATA Motors 0.36 0.37 0.42

Mahindra & Mahindra 0.99 1.07 1.08

Motors

Quick Ratio
1.1

1.08

1.06

1.04

1.02

0.98

0.96

0.94
2019 2020 2021

Mahindra and Mahindra Motors

49
Interpretation:

According to the analysis of the aforementioned table and graph, Mahindra and Mahindra
Motors' ability to convert its assets in 2019 was significantly less than it was in 2020 and
2021. However, it was later raised, perhaps as a result of the corporation paying off its debts
even further to avoid being dissolved.

2) For evaluating the Long term solvency of Mahindra and Mahindra Motors:
A) Leverage Ratios
a) Debt to equity Ratio
Debt to equity ratio of Mahindra and Mahindra motors:

Companies 2019 2020 2021

Mahindra & Mahindra 0.07 0.09 0.21
Motors

Debt to Equity Ratio

0.25

0.2

0.15

0.1

0.05

0
2019 2020 2021

Mahindra and Mahindra Motors

Interpretation:

A higher Debt to equity ratio denotes greater risk, whereas a particularly low one can signify
that a company is not utilising debt funding for expansion.

50
Because long-term liabilities are riskier than short-term ones, investors frequently change the
Debt-to-equity ratio to just take them into account.
Mahindra and Mahindra Motors' debt equity ratio for 2019 is 0.07, which is less than the year
2020's ratio of 0.09, which suggests that the company is not using debt financing to expand,
and in the year 2021, which is more than the years 2019 and 2020 and hence implies greater
risks.

b) Interest coverage ratio

Interest coverage ratio of Mahindra and Mahindra Motors:

Companies 2019 2020 2021

Mahindra & Mahindra 0.70 (0.06) 4.31
Motors

Interest coverage Ratio

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2019 2020 2021
-0.5

Mahindra and Mahindra Motors

Interpretation:

A high ratio means there are sufficient profits to pay off the debt.
However, it could also indicate that the business is misusing its debt. To keep ahead of the
competition over the long run, a corporation may not invest in new products and technology
if it does not borrow enough.
Mahindra and Mahindra Motors' interest coverage ratio for the year 2019 is 0.70, which is
51
higher than the ratio for the year 2020, which is 0.06 higher ratio, indicating that there is
enough profit available to service the debt. The ratio for the year 2020 is 0.06, which is lower
than the ratio for the years 2019 and 2021, indicating low interest ratio so that the company
cannot service the debt. The ratio for the year 2021 is 4.31, which is higher than the ratio for
the years 2019 and 2020

3) For evaluating the Profitability of Mahindra & Mahindra Motors:

A) Profitability Ratios
a) Margin Ratios
i) Gross Profit Margin:

Gross Profit Margin of Mahindra and Mahindra motors:

Company 2019 2020 2021
Mahindra & Mahindra 8.91 7.86 9.48
Motors

Gross profit Margin Ratio

10
9
8
7
6
5
4
3
2
1
0
2019 2020 2021

Mahindra and Mahindra Motors

52
Interpretation:
Mahindra & Mahindra seems to have controlled their production costs to have a steady gross
profit margin. When a company's core operations are more productive, it can pay operating
expenses, fixed costs, dividends, and depreciation while still turning a profit. This is known
as having a high gross profit margin ratio.

i) Operating Profit Margin:

Operating Profit Margin of Mahindra and Mahindra motors:

Company 2019 2020 2021
Mahindra & Mahindra 12.38 12.74 14.44
Motors

Operating profit Margin Ratio

15

14.5

14

13.5

13

12.5

12

11.5

11
2019 2020 2021

Mahindra and Mahindra Motors

Interpretation:
Mahindra seems to have a healthy operating profit margin, indicating potential for growth.
Companies like Mahindra with high operating profit margins can offer lower rates than their
competitors who have lower profit margins because they are better able to fund fixed costs

53
and interest on obligations, have a better chance of surviving an economic downturn, and can
fund fixed costs and obligations.

1) Net Profit Margin:

Net Profit Margin of Mahindra and Mahindra motors:

Company 2019 2020 2021

Mahindra & Mahindra 8.94 2.92 0.59
Motors

Net profit Margin Ratio

10
9
8
7
6
5
4
3
2
1
0
2019 2020 2021

Mahindra and Mahindra Motors

Interpretation:
Mahindra in 2019 had desirable profit margin of 8.94, it fell to 2.92 in 2020 its sustainable
but not desirable for any business, but they seem to fall even more in 2021. It can imply that
they have inefficient pricing policies or cost structures. For Mahindra, it demonstrates how
much profit is left over after all production, management, and finance costs have been
subtracted from sales and income taxes have been included, demonstrating that it is in a
stable and desirable position.

54
 b) Return Ratios
i) Return on assets

Return on invested capital of Mahindra and Mahindra Motors:

Company 2019 2020 2021

Mahindra & Mahindra 9.10 2.63 0.45

Motors

Return on Assets Ratio

10
9
8
7
6
5
4
3
2
1
0
2019 2020 2021

Mahindra and Mahindra Motors

Interpretation:

The above table and graph tells that its return on assets ratio in 2019 were much better than
the succeeding years. The amount of money invested in assets were quite high so in 2019, so
the returns were higher too. But when pandemic hit, there weren’t able to sell of its cars to the
clients as massive lockdown has Implemented on the country. So the ratio went down to 2.63
and later then moved to 0.45 in 2021. As of now, we cant see any improvements in the ROA

55
of Mahindra and Mahinda Motors.

ii) Return on invested capital

Return on invested capital of Mahindra and Mahindra Motors:

Company 2019 2020 2021

Mahindra & Mahindra 16.86 13.26 12.35

Motors

Return on invested capital

18

16

14

12

10

0
2019 2020 2021

Mahindra and Mahindra Motors

Interpretation:

The table and graph above show that they can make more money with the same amount of
cash invested. Investors in the company in 2019 saw a return of roughly 16.86% on their
investment. It then fell to 13.26% in 2020, mostly as a result of a decline in the manufacture
and sales of cars by Mahindra and Mahindra Motors. But even after the epidemic started to

56
weaken throughout the nation, the ROIC was still down 1% in 2021.

iii) Return on equity

Return on equity of Mahindra and Mahindra Motors:

Company 2019 2020 2021

Mahindra & Mahindra 14.01 3.86 0.77

Motors

Return on equity Ratio

16

14

12

10

0
2019 2020 2021

Mahindra and Mahindra Motors

Interpretation:

The return on equity for Mahindra & Mahindra Motors is a pitiful 0.77%. ROE is an
important financial statistic for the car industry because of the significant equity investments
they make. They also have to take on a lot of debt to pay for their production and research,
therefore it's important to evaluate their debt-to-equity ratio. Mahindra and Mahindra Motors'

57
debt-to-equity ratio is 0.21, which is low. However, the ROE has been rapidly declining as
compared to 2020, which is concerning because companies like this cannot prosper without a
high return on equity. The Return on Equity for 2019 was better than the Return on Equity for
the years that came after it.

2) For evaluating Efficiency ratio of Mahindra and Mahindra Motors:

A) Asset turnover ratio

Asset turnover ratio of Mahindra and Mahindra Motors:

Company 2019 2020 2021

Mahindra and 101.74 90.07 75.58
Mahindra Motors

Asset turnover Ratio

120

100

80

60

40

20

0
2019 2020 2021

Mahindra and Mahindra Motors

58
Interpretation:

In 2019 (pre covid-19) Mahindra motors had a good sale and a good asset turnover ratio of
101.74. In 2020 due to Covid – 19 every automobile industry faced a huge fall in their sales.
Mahindra motors was also hit badly as its asset turnover ratio came down from 101.74 –
90.07. In 2021 (post covid-19) many companies were struggling to gearing up their sales. But
Mahindra motors failed to increase its sales. To be more precise its sales were reduced
compared to 2020. This affects its asset turnover ratio which dropped to 75.58.
Always higher ratio is favorable for the company, whereas lower asset turnover company is
not a favorable for the company. Analyzing 3 years asset turnover ratios of Mahindra motors
we can conclude that the asset turnover ratio is falling year by year that indicates the
company is not using its assets as efficiently.

B) Inventory turnover ratio

Inventory turnover ratio of Mahindra and Mahindra Motors:

Company 2019 2020 2021

Mahindra and 13.96 13.38 11.39
Mahindra Motors

59
 Inventory turnover Ratio
16

14

12

10

0
2019 2020 2021

Mahindra and Mahindra Motors

Interpretation:

In 2019 (pre covid-19) Mahindra motors had a good sale and a good Inventory turnover ratio
of 13.96. In 2020 due to Covid – 19 every automobile industry faced a huge fall in their sales.
Mahindra motors was also hit badly as Inventory ratio came down from 13.96- 13.38.
In 2021 (post covid - 19) many companies were struggling to gearing up their sales. But
Mahindra motors failed to increase its sales. To be more precise its sales were reduced
compared to 2020, because of this its Inventory turnover ratio also came down from 13.38-
11.39.
Higher the inventory turnover ratio Is good for a company whereas lower inventory turnover
ratio is bad. Analyzing 3 years inventory turnover ratio of Mahindra motors we can conclude
that its inventory turnover ratio is decreasing year by year that indicates weak sales or
excessive inventory, also known as overstocking.

3.2- Major findings

Tata Motors and Mahindra & Mahindra Motors' financial results for the time period under
consideration do not differ significantly from one another because the p value is 0.7040,
which is higher than the significance level 5%.

60
 4- Conclusions and Recommendations

4.1 Discussion
During the pandemic, TATA Motors didn’t take appropriate measures, and they
invested a lot of money into research and development of electric vehicles.
Whereas Mahindra and Mahindra Motors anticipated the loss during the
pandemic so they took measures to reduce it which positively impacted their
financial performance compared to TATA Motors.

4.2 Conclusion
Based on a comparison of Tata Motors' and Mahindra & Mahindra Motors' financial results,
it can be concluded that M&M Motors' liquidity. Tata Motors' low position and high position
contrasted to show the firms'

The capacity to fulfil urgent obligations on time. Tata Motors' prospective Lower solvency
suggests that the corporation relies more on outside funding.
A lesser level of security for creditors for long-term borrowings. Mahindra & Mahindra
Motors has greater profitability ratios than the company Tata Motors'. Mahindra & Mahindra
Motors accomplished a noteworthy profit, which is advantageous to the business.

61
 5- Appendices

COMPARATIVE STATEMENT OF FINANCIAL POSITION OF TATA MOTORS

BALANCE SHEET OF TATA MOTORS (in MAR 21 MAR 20 MAR 19

Rs. Cr.)

12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 765.81 719.54 679.22

TOTAL SHARE CAPITAL 765.81 719.54 679.22

Reserves and Surplus 18,290.16 16,800.61 21,483.30

TOTAL RESERVES AND SURPLUS 18,290.16 16,800.61 21,483.30

TOTAL SHAREHOLDERS FUNDS 19,055.97 18,387.65 22,162.52

NON-CURRENT LIABILITIES

Long Term Borrowings 16,326.77 14,776.51 13,914.74

Deferred Tax Liabilities [Net] 266.50 198.59 205.86

Other Long Term Liabilities 1,786.93 1,646.56 404.11

Long Term Provisions 1,371.94 1,769.74 1,281.59

TOTAL NON-CURRENT LIABILITIES 19,752.14 18,391.40 15,806.30

CURRENT LIABILITIES

Short Term Borrowings 5,421.95 6,121.36 3,617.72

Trade Payables 8,115.01 8,102.25 10,408.83

Other Current Liabilities 11,671.05 10,180.46 7,765.57

Short Term Provisions 1,043.54 1,406.75 1,148.69

62
TOTAL CURRENT LIABILITIES 26,251.55 25,810.82 22,940.81

TOTAL CAPITAL AND LIABILITIES 65,059.66 62,589.87 60,909.63

ASSETS

NON-CURRENT ASSETS

Tangible Assets 19,922.06 19,540.25 18,316.61

Intangible Assets 6,501.04 5,667.73 3,970.22

Capital Work-In-Progress 1,400.82 1,755.51 2,146.96

Other Assets 0.00 0.00 0.00

FIXED ASSETS 29,429.56 29,702.78 28,573.42

Non-Current Investments 16,114.91 15,730.86 15,434.19

Deferred Tax Assets [Net] 0.00 0.00 0.00

Long Term Loans And Advances 72.39 138.46 143.13

Other Non-Current Assets 3,588.21 3,449.01 3,529.59

TOTAL NON-CURRENT ASSETS 49,205.07 49,021.11 47,680.33

CURRENT ASSETS

Current Investments 1,578.26 885.31 1,433.18

Inventories 4,551.71 3,831.92 4,662.00

Trade Receivables 2,087.51 1,978.06 3,250.64

Cash And Cash Equivalents 4,318.94 3,532.19 1,306.61

Short Term Loans And Advances 184.49 232.14 200.08

OtherCurrentAssets 3,133.68 3,109.14 2,376.79

TOTAL CURRENT ASSETS 15,854.59 13,568.76 13,229.30

TOTAL ASSETS 65,059.66 62,589.87 60,909.63

63
 COMPARATIVE STATEMENT OF PROFIT & LOSS ACCOUNT
OF TATA MOTORS

PROFIT & LOSS ACCOUNT OF TATA MAR 21 MAR 20 MAR 19

MOTORS (in Rs. Cr.)

12 mths 12 mths 12 mths

INCOME

REVENUE FROM OPERATIONS 29,769.07 43,485.76 68,764.88

[GROSS]

Less: Excise/Sevice Tax/Other Levies 0.00 0.00 0.00

REVENUE FROM OPERATIONS 29,769.07 43,485.76 68,764.88

[NET]

TOTAL OPERATING REVENUES 30,175.03 43,928.17 69,202.76

Other Income 419.99 1,383.05 2,554.66

TOTAL REVENUE 30,595.02 45,311.22 71,757.42

EXPENSES

Cost Of Materials Consumed 19,050.74 26,171.85 43,748.77

Purchase Of Stock-In Trade 3,156.80 5,679.98 6,722.32

Operating And Direct Expenses 348.71 830.24 571.76

Changes In Inventories Of FG,WIP And -609.55 722.68 144.69

Stock-In Trade

Employee Benefit Expenses 3,341.53 4,384.31 4,273.10

Finance Costs 2,110.83 1,973.00 1,793.57

Depreciation And Amortisation 1,730.71 3,375.29 3,098.64

Expenses

64
Other Expenses 4,227.35 7,959.75 9,895.68

TOTAL EXPENSES 32,562.19 49,927.64 69,155.42

PROFIT/LOSS BEFORE -1,967.17 -4,616.42 2,602.00

EXCEPTIONAL, EXTRAORDINARY
ITEMS AND TAX

Exceptional Items -307.55 -2,510.92 -203.07

PROFIT/LOSS BEFORE TAX -2,274.72 -7,127.34 2,398.93

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 20.16 33.05 294.66

Less: MAT Credit Entitlement 0.00 0.00 0.00

Deferred Tax 0.56 129.24 83.67

Tax For Earlier Years 0.00 0.00 0.00

TOTAL TAX EXPENSES 20.72 162.29 378.33

PROFIT/LOSS AFTER TAX AND -2,295.44 -7,289.63 2,020.60

BEFORE EXTRAORDINARY ITEMS

PROFIT/LOSS FROM CONTINUING -2,295.44 -7,289.63 2,020.60

OPERATIONS

PROFIT/LOSS FOR THE PERIOD -2,395.44 -7,289.63 2,020.60

65
COMPARATIVE STATEMENT OF FINANCIAL POSITION OF MAHINDRA AND
MAHINDRA MOTORS

BALANCE SHEET OF MAHINDRA AND MAR 21 MAR 20 MAR 19

MAHINDRA (in Rs. Cr.)

12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 597.39 596.52 595.80

TOTAL SHARE CAPITAL 597.39 596.52 595.80

Reserves and Surplus 33,649.65 33,606.36 33,613.43

TOTAL RESERVES AND SURPLUS 33,649.65 33,606.36 33,613.43

TOTAL SHAREHOLDERS FUNDS 34,501.92 34,467.84 34,209.23

NON-CURRENT LIABILITIES

Long Term Borrowings 7,070.03 2,032.03 2,031.78

Deferred Tax Liabilities [Net] 1,343.15 1,408.17 634.13

Other Long Term Liabilities 585.11 698.22 604.92

Long Term Provisions 955.42 922.98 882.93

TOTAL NON-CURRENT LIABILITIES 9,953.71 5,061.40 4,153.76

CURRENT LIABILITIES

Short Term Borrowings 24.74 900.00 448.54

Trade Payables 9,988.16 6,785.83 9,678.15

Other Current Liabilities 4,633.79 2,691.43 3,518.71

Short Term Provisions 486.48 595.56 688.67

TOTAL CURRENT LIABILITIES 15,133.17 10,972.82 14,334.07

66
TOTAL CAPITAL AND LIABILITIES 59,588.80 50,502.06 52,697.06

ASSETS

NON-CURRENT ASSETS

Tangible Assets 7,872.59 7,980.76 7,614.71

Intangible Assets 2,306.76 2,413.83 2,467.04

Capital Work-In-Progress 1,708.88 1,196.68 706.77

Other Assets 0.00 0.00 0.00

FIXED ASSETS 15,011.51 14,404.05 12,501.54

Non-Current Investments 19,576.60 17,748.48 19,032.07

Deferred Tax Assets [Net] 0.00 0.00 0.00

Long Term Loans And Advances 1,652.72 138.86 37.55

Other Non-Current Assets 3,035.67 3,069.18 3,054.84

TOTAL NON-CURRENT ASSETS 39,276.50 35,360.57 34,626.00

CURRENT ASSETS

Current Investments 4,488.47 2,189.65 2,983.96

Inventories 3,955.47 3,400.91 3,839.27

Trade Receivables 2,342.85 2,998.98 3,946.30

Cash And Cash Equivalents 6,255.42 4,236.51 3,731.66

Short Term Loans And Advances 756.94 512.02 673.40

OtherCurrentAssets 2,513.15 1,803.42 2,896.47

TOTAL CURRENT ASSETS 20,312.30 15,141.49 18,071.06

TOTAL ASSETS 59,588.80 50,502.06 52,697.06

67
 COMPARATIVE STATEMENT OF PROFIT & LOSS ACCOUNT
OF MAHINDRA AND MAHINDRA MOTORS

PROFIT & LOSS ACCOUNT OF MAHINDRA MAR 21 MAR 20 MAR 19

AND MAHINDRA (in Rs. Cr.)

12 mths 12 mths 12 mths

INCOME

REVENUE FROM OPERATIONS [GROSS] 44,296.95 44,897.93 52,960.80

Less: Excise/Sevice Tax/Other Levies 0.00 0.00 0.00

REVENUE FROM OPERATIONS [NET] 44,296.95 44,897.93 52,960.80

TOTAL OPERATING REVENUES 45,040.98 45,487.78 53,614.00

Other Income 1,221.31 1,667.81 1,688.97

TOTAL REVENUE 46,262.29 47,155.59 55,302.97

EXPENSES

Cost Of Materials Consumed 25,035.89 22,873.74 27,095.07

Purchase Of Stock-In Trade 6,817.12 8,349.36 12,111.61

Operating And Direct Expenses 0.00 0.00 0.00

Changes In Inventories Of FG,WIP And Stock- -240.00 409.49 -950.19

In Trade

Employee Benefit Expenses 2,858.80 2,880.08 2,980.22

Finance Costs 370.88 113.23 113.39

Depreciation And Amortisation Expenses 2,232.99 2,222.63 1,860.40

Other Expenses 4,176.98 5,384.59 5,867.23

TOTAL EXPENSES 41,138.74 42,025.58 48,948.23

PROFIT/LOSS BEFORE EXCEPTIONAL, 5,123.55 5,130.01 6,354.74

EXTRAORDINARY ITEMS AND TAX

68
Exceptional Items -3,663.27 -2,013.98 -29.73

PROFIT/LOSS BEFORE TAX 1,460.28 3,116.03 6,325.01

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 1,235.63 996.98 1,179.12

Less: MAT Credit Entitlement 0.00 0.00 0.00

Deferred Tax -44.01 788.50 349.85

Tax For Earlier Years 0.00 0.00 0.00

TOTAL TAX EXPENSES 1,191.62 1,785.48 1,528.97

PROFIT/LOSS AFTER TAX AND BEFORE 268.66 1,330.55 4,796.04

EXTRAORDINARY ITEMS

PROFIT/LOSS FROM CONTINUING 268.66 1,330.55 4,796.04

OPERATIONS

PROFIT/LOSS FOR THE PERIOD 268.66 1,330.55 4,796.04

69
 6- References

1) Tata Motors Balance Sheet, Tata Motors Financial Statement & Accounts
(moneycontrol.com)
2) Mahindra and Mahindra Balance Sheet, Mahindra and Mahindra Financial Statement &
Accounts (moneycontrol.com)
3) Understanding Liquidity Ratios: Types and Their Importance (investopedia.com)
4) Leverage Ratio: What It Is, What It Tells You, How To Calculate (investopedia.com)
5) Profitability Ratios: What They Are, Common Types, and How Businesses Use Them
(investopedia.com)
6) Efficiency Ratio: Definition, Formula, and Example (investopedia.com)
7) What Do Efficiency Ratios Measure? (investopedia.com)
8) MAHINDRA & MAHINDRA LTD. - Share Price | Ratios | BSE/NSE Performance | Live
Stock Quote (rediff.com)
9) TATA MOTORS LTD. - Share Price | Ratios | BSE/NSE Performance | Live Stock Quote
(rediff.com)
10) About Mahindra Company - History, Founder, Owner | Mahindra Group
11) Tata Motors - Car Manufacturers in India, OEM Automotive Companies
12) Tata Group | History, Companies, Subsidiaries, & Facts | Britannica
13) Tata Motors vs Mahindra & Mahindra: Where should you work? | Ambitionbox
14) Automotive industry - Wikipedia
15) Automobile Industry, Indian Automobile Companies - IBEF
16) Automotive industry in India - Wikipedia

70