Annual Financials for Tata Motors Ltd

All amounts in millions except per share amounts.

03/2009 03/2008 03/2007 03/2006
(TTM) (TTM) (TTM) (TTM)
Operating Activities
Net Income (Loss) -1,197.87 355.10 420.30 337.40
Depreciation 552.67 173.50 137.90 123.00
Amortization 0.00 0.00 0.00 0.00
Amortization of Intangibles 0.00 21.00 15.40 8.40
Deferred Income Taxes 0.00 -10.70 19.20 15.40
Operating (Gains) Losses 400.71 -64.10 -18.00 -28.60
Extraordinary (Gains) Losses 0.00 0.00 0.00 0.00
(Increase) Decrease in Receivables 350.17 -269.20 -115.90 -62.50
(Increase) Decrease in Inventories 296.62 -24.20 -175.60 -103.50
(Increase) Decrease in Prepaid Expenses 0.00 0.00 0.00 -233.20
(Increase) Decrease in Other Current Assets 196.24 -41.70 -152.50 0.00
(Increase) Decrease in Payables 113.31 200.20 329.50 77.70
(Increase) Decrease in Other Curr Liabs. -996.54 520.80 -64.00 34.70
(Increase) Decrease in Other Working Capital 0.00 -20.80 -18.90 -41.30
Other Non-Cash Items 781.27 46.80 28.40 0.00
Net Cash from Continuing Operations 496.59 886.70 405.80 127.50
Net Cash from Discontinued Operations 0.00 0.00 0.00 0.00

Net Cash from Operating Activities 496.59 886.70 405.80 127.50

Investing Activities
Sale of Property, Plant, Equipment 16.41 11.80 24.20 4.40
Sale of Long Term Investments 334.15 63.60 9.30 46.70
Sale of Short Term Investments 0.00 26.40 145.70 430.70
Purchase of Property, Plant, Equipment -1,767.81 -1,067.10 -586.50 -241.30
Acquisitions -1,970.61 -2.20 0.00 -100.20
Purchase of Long Term Investments -0.44 -198.40 -8.90 -4.10
Purchase of Short Term Investments 0.00 -300.70 -3.20 -15.50
Other Investing Changes Net 187.76 -383.00 -832.60 -324.20
Cash from Disc. Investing Activities 0.00 0.00 0.00 0.00
Net Cash from Investing Activities -3,200.54 -1,849.60 -1,252.00 -203.50
Financing Activities
Issuance of Debt 5,796.81 471.80 1,077.40 288.50
Issuance of Capital Stock 810.09 1,017.10 3.80 15.10
Repayment of Debt -2,763.90 -231.90 -53.20 -85.10
Repurchase of Capital Stock 0.00 0.00 0.00 0.00
Payment of Cash Dividends -147.66 -169.00 -131.80 -115.70
Other Financing Charges, Net -631.65 2.50 -3.50 -2.90
Cash from Disc. Financing Activities 0.00 0.00 0.00 0.00

Net Cash from Financing Activities 3,063.70 1,090.50 892.70 99.90

Effect of Exchange Rate Changes -134.82 -33.80 -15.50 8.50

Net Change in Cash & Cash Equivalents 224.92 93.80 31.00 32.40

Cash at Beginning of Period 225.01 190.90 146.50 109.60

Cash at End of Period 449.93 284.70 177.50 142.00

Annual Financials for Tata Motors Ltd

All amounts in millions except per share amounts.
03/2009 03/2008 03/2007 03/2006
(TTM) (TTM) (TTM) (TTM)
Operating Revenue 13,849.14 8,815.30 7,692.00 5,409.50
Total Revenue 14,246.70 9,126.20 7,692.00 5,409.50
Adjustment to Revenue 0.00 0.00 0.00 0.00
Cost of Sales 9,633.06 6,999.30 5,959.20 4,124.90
Cost of Sales with Depreciation 9,633.06 7,193.80 6,112.50 4,256.30
Gross Margin 0.00 0.00 0.00 0.00
Gross Operating Profit 4,216.08 1,816.00 1,732.80 1,284.60
R&D 0.00 247.50 139.60 104.80
SG&A 1,482.21 1,092.70 826.60 597.80
Advertising 0.00 0.00 0.00 0.00
Operating Profit -603.02 592.10 613.30 450.60
Operating Profit before Depreciation (EBITDA) 2,733.87 475.80 766.60 582.00
Depreciation 552.67 194.50 153.30 131.40
Depreciation Unreconciled 552.67 0.00 0.00 0.00
Amortization 0.00 0.00 0.00 0.00
Amortization of Intangibles 0.00 0.00 0.00 0.00
Operating Income After Depreciation 2,181.20 281.30 613.30 450.60
Interest Income 61.05 42.20 13.90 14.90
Earnings from Equity Interest 0.00 -1.40 12.80 10.60
Other Income, Net -2,748.99 471.70 110.80 78.60
Income Acquired in Process R&D 0.00 0.00 0.00 0.00
Interest Restructuring and M&A 0.00 -0.10 0.00 0.00
Other Special Charges 0.00 0.00 0.00 0.00
Total Income Avail for Interest Expense (EBIT) -506.75 793.70 750.80 554.70
Interest Expense 674.53 262.50 125.60 83.60
Income Before Tax (EBT) -1,181.28 531.20 625.20 471.10
Income Taxes 16.59 147.40 188.20 126.30
Minority Interest -12.45 28.70 16.70 7.40
Preferred Securities of Subsidiary Trust 0.00 0.00 0.00 0.00

Net Income from Continuing Operations -1,185.42 355.10 420.30 337.40

Net Income from Discontinued Ops. 0.00 0.00 0.00 0.00
Net Income from Total Operations -1,185.42 355.10 420.30 337.40

Extraordinary Income/Losses 0.00 0.00 0.00 0.00

Income from Cum. Effect of Acct Chg 0.00 0.00 0.00 0.00
Income from Tax Loss Carryforward 0.00 0.00 0.00 0.00
Other Gains (Losses) 0.00 0.00 0.00 0.00

Total Net Income -1,185.42 355.10 420.30 337.40

Normalized Income -1,185.42 355.20 420.30 337.40

Net Income Available for Common -1,185.42 355.10 420.30 337.40
Preferred Dividends 0.00 0.00 0.00 0.00
Excise Taxes 0.00 1,183.30 0.00 0.00

Per Share Data

Basic EPS from Continuing Ops. -2.69 0.90 1.10 0.90
Basic EPS from Discontinued Ops. 0.00 0.00 0.00 0.00
Basic EPS from Total Operations -2.69 0.90 1.10 0.90
Basic EPS from Extraordinary Inc. 0.00 0.00 0.00 0.00
Basic EPS from Cum Effect of Accounting Chg 0.00 0.00 0.00 0.00
Basic EPS from Other Gains (Losses) 0.00 0.00 0.00 0.00
Basic EPS Total -2.69 0.90 1.10 0.90
Basic Normalized Net Income/Share -2.69 0.90 1.10 0.90

Diluted EPS from Continuing Ops. -2.69 0.90 1.10 0.90

Diluted EPS from Discontinued Ops. 0.00 0.00 0.00 0.00
Diluted EPS from Total Operations -2.69 0.90 1.10 0.90
Diluted EPS from Extraordinary Inc. 0.00 0.00 0.00 0.00
Diluted EPS from Cum Effect of Accounting Chg 0.00 0.00 0.00 0.00
Diluted EPS from Other Gains (Losses) 0.00 0.00 0.00 0.00
Diluted EPS Total -2.69 0.90 1.10 0.90
Diluted Normalized Net Income/Share -2.69 0.90 1.10 0.90

Dividends Paid per Share 0.35 0.00 0.28 0.29

Additional Data
Basic Weighted Shares Outstanding 440.48 385.44 384.54 373.27
Diluted Weighted Shares Outstanding 440.48 407.17 407.17 399.31

TTM = Trailing Twelve Months

Annual Financials for Tata Motors Ltd

All amounts in millions except per share amounts.
03/2009 03/2008 03/2007 03/2006
(TTM) (TTM) (TTM) (TTM)
Assets
Cash and Equivalents 457.98 284.70 177.50 142.00
Restricted Cash 0.00 0.00 0.00 0.00
 Marketable Securities 16.44 19.60 64.10 181.30
Accounts Receivable 1,018.96 708.20 448.30 320.50
Loans Receivable 0.00 601.70 666.00 459.80
Other Receivable 1,380.27 0.00 0.00 0.00
Receivables 2,399.23 1,309.90 1,114.30 780.30
Raw Materials 390.58 409.30 373.80 298.60
Work In Progress 221.96 100.70 93.00 81.60
Purchased Components 0.00 0.00 0.00 0.00
Finished Goods 1,515.30 348.10 320.30 211.20
Other Inventories 0.00 0.00 0.00 0.00
Inventories -Adj Allowances 0.00 0.00 0.00 0.00
Inventories 2,127.84 858.10 787.10 591.40
Prepaid Expenses 0.00 28.40 20.00 10.50
Current Deferred Income Taxes 0.00 74.50 58.80 49.80
Other Current Assets 848.90 536.30 421.70 270.00
Total Current Assets 5,850.39 3,111.50 2,643.50 2,025.30
Gross Fixed Assets (Plant, Prop. & Equip.) 5,727.19 3,766.10 2,535.10 1,938.60
Accumulated Depreciation & Depletion 1,374.10 1,276.40 1,058.30 915.50
Net Fixed Assets 4,353.09 2,489.70 1,476.80 1,023.10
Intangibles 2,451.37 77.80 69.40 53.00
Cost in Excess 105.47 174.10 167.90 158.10
Non-Current Deferred Income Taxes 84.34 0.00 0.00 0.00
Other Non-Current Assets 2,581.17 3,374.20 1,930.50 1,285.40
Total Non Current Assets 9,575.44 6,115.80 3,644.60 2,519.60

Total Assets 15,425.83 9,227.30 6,288.10 4,544.90

Liabilities
Accounts Payable 2,889.89 1,375.70 1,055.10 681.40
Notes Payable 0.00 0.00 0.00 0.00
Short Term Debt 6,299.96 1,724.50 902.60 212.20
Accrued Expenses 0.00 281.50 42.50 122.00
Accrued Liabilities 0.00 9.20 6.60 4.50
Deferred Revenues 0.00 0.00 0.00 0.00
Current Deferred Income Taxes 0.00 0.00 0.00 0.00
Other Current Liabilities 2,284.65 1,206.70 795.60 798.40
 Total Current Liabilities 11,474.50 4,597.60 2,802.40 1,818.50
Long Term Debt 2,290.05 1,469.10 933.50 611.60
Capital Lease Obligations 0.00 0.00 0.00 0.00
Deferred Income Taxes 154.19 152.90 138.80 137.90
Other Non-Current Liabilities 743.79 236.60 199.40 81.10
Minority Interest 82.40 140.80 94.10 74.30
Preferred Securities of Subsidiary Trust 0.00 0.00 0.00 0.00
Preferred Equity outside Stock Equity 0.00 0.00 0.00 0.00
Total Non-Current Liabilities 3,270.43 1,999.40 1,365.80 904.90

Total Liabilities 14,744.93 6,597.00 4,168.20 2,723.40

Stockholder's Equity
Preferred Stock Equity 0.00 0.00 0.00 0.00
Common Stock Equity 680.90 2,630.30 2,119.90 1,821.50
Common Par 101.32 96.30 89.40 86.10
Additional Paid In Capital 1,540.74 994.00 921.40 871.70
Cumulative Translation Adjustment 0.00 0.00 0.00 0.00
Retained Earnings -551.96 977.60 745.60 458.70
Treasury Stock 0.00 0.00 0.00 0.00
Other Equity Adjustments -409.21 562.40 363.50 405.00

Total Equity 680.90 2,630.30 2,119.90 1,821.50

Total Capitalization 2,970.95 4,099.40 3,053.40 2,433.10

Total Liabilities & Stock Equity 15,425.83 9,227.30 6,288.10 4,544.90

Additional Data
Cash Flow -632.75 549.60 573.60 468.80
Working Capital -5,624.11 -1,486.10 -158.90 206.80
Free Cash Flow -3,389.49 -351.60 -312.50 -329.70
Invested Capital 2,970.95 4,099.40 3,053.40 2,433.10

Share Data
Shares Outstanding Common Class Only 449.83 385.49 385.36 382.82
Preferred Shares 0.00 0.00 0.00 0.00
Total Ordinary Shares 449.83 385.49 385.36 382.82
Total Common Shares Outstanding 449.83 385.49 385.36 382.82
Treasury Shares 0.00 0.00 0.00 0.00

TTM = Trailing Twelve Months

As readers know, in 1987, the Financial Accounting Standards Board (FASB) required companies to
generate a statement of cash flows. The FASB believed that the cash flow information would help investors
and creditors predict future cash flows. Subsequently, researchers have used the success of predicting
financial distress as a criterion to evaluate the usefulness of cash flow information to lenders.

This article describes a six-stage theoretical model illustrating how cash flow information can predict
financial distress. The model demonstrates that cash flow information, segregated by activities, identifies
patterns that can predict insolvency. The model also emphasizes that both net and gross cash flows are
important and suggests that the FASB should have required companies to use the direct method to calculate
cash flow from operating activities.

Background

A major objective of accounting is to provide quantitative economic information that will be useful in
making investment decisions. And the ideal information needed by users is future cash transfers.(1) The
Statement of Financial Accounting Concepts No. 1 adopted this idea by stating that "financial reporting
should provide information to help in assessing...prospective net cash inflows."(2)

The focus on future cash flows as a criterion for evaluating the usefulness of accounting information led
many accountants and other users of accounting information to advocate the need for additional cash flow
information. Some researchers even suggested that cash flow information may be more useful than
traditional accrual information. The FASB acknowledged the usefulness of cash flow information by
proposing that a cash flow statement replace the statement of changes in financial position.

Financial Flexibility

Financial flexibility is the capacity of a firm to control cash receipts and payments to survive a period of
financial adversity.(3) The ultimate aim of financial flexibility is to achieve a state of equilibrium in cash
flow so that the available purchasing power will be equal to the …

IFRS
Mumbai: Corporate India may soon breathe a sigh of relief.

The much-anticipated International Financial Reporting Standards (IFRS) is likely to be

rolled out only partially in India from April 1, 2011.
That’s because a core group on IFRS implementation, set up by the ministry of company
affairs and headed by renowned chartered accountant Y H Malegam, is set to recommend
that it be made mandatory only for big corporates in the first phase.

The panel has prepared a report recommending IFRS-based reporting only for Nifty 50,
Sensex 30 and companies with a net worth of over Rs 1,000 crore.

These companies may have to prepare their financial statements under IFRS for financial
year 2011-2012.

In the second phase starting 2013-14, all listed companies and companies with net worth
greater than Rs 500 crore will be covered.
As per the IFRS convergence road map prepared by the Institute of Chartered
Accountants of India (ICAI), all listed companies were to file IFRS accounts for 2011-12.

Some core group members, who spoke to Bloomberg-UTV on the condition of anonymity,
said both companies and a vast majority of chartered accountants are not adequately
trained to implement IFRS on such a large scale.

The group is keen to avoid the chaos that IFRS implementation created in Europe a few
years ago.

Indian companies currently prepare accounts on a historical cost basis, whereas IFRS is
based on fair value or mark-to-market accounting.

Shailesh Haribhakti, chartered accountant, and one of the members of the IFRS
convergence committee of ICAI, said

“Voluntary adoption of IFRS should be strongly encouraged. Let us also focus on small
and medium enterprises IFRS as historical cost accounting is obsolete.”