REPORT OF FINANCIAL STATEMENT ANALYSIS

AT
Tata Motors Ltd
In partial fulfilment of the award of the degree of B.COM(PASS)

Teerthanker Mahaveer Institute of Management and Technology

(TMIMT)

Teerthanker Mahaveer University, Moradabad, U.P

SUBMITTED BY: SUBMITTED TO:

KAMAL LAKHA DR. RENU

TMG2119020 ASSISTANCE PROF

6th SEM
 INDEX

SERIAL NO. TOPICS PAGE NO.

1. ACKNOWLEDGEMENT

2. DECLARATION

3. COMPANY PROFILE

4. INTRODUCTION TO THE TOPIC

5. RESEARCH OBJECTIVE

6. RESEARCH METHODOLOGY

7. DATA ANALYSIS AND

INTERPRETATION
8. RESULTS AND FINDING

9. LIMITTATIONS

10. CONCLUSION

11. REFFERENCE
 ACKNOWLEDGMENT

It gives me immense pleasure and privilege to acknowledge my deepest sense of

gratitude towards all those who helped me in the successful execution of this
dissertation

I would like to thanks principal Prof. (Dr.) Vipin Jain for his able guidance. I also
extended my gratitude towards the Head of Department Dr. Manoj Agarwal , project
incharge Dr. Nitin Agarwal who entrusted me for the completion of this project.

I would like to thanks my internal guide Dr. Renu for their guidance and support. She
were always patient and willing to answer my questions, and she provided me with
valuable feedback that helped me improve my skills and knowledge.

KAMAL LAKHA
B.COM (PASS)
TMG2119020
 DECLARATION

I Kushal Gupta , hereby declare that the analysis presented in this report titled
"Financial Statement Analysis” is based on factual information and accurate
interpretations of the financial statements.

I affirm that all the methodologies, tools, and techniques used in the analysis have
been applied diligently and ethically.

Kamal Lakha
B.COM (PASS)
6th SEM.

COMPANY PROFILE
Tata Motors Limited is an Indian multinational automotive company, headquartered
in Mumbai and part of the Tata Group. The company produces cars, trucks, vans,
and busses.

Subsidiaries include British Jaguar Land Rover and South Korean Tata Daewoo.
Tata Motors has joint ventures with Hitachi (Tata Hitachi Construction Machinery)
and Stellantis, which makes vehicle parts for Fiat Chrysler and Tata-branded
vehicles. On 12 October 2021, private equity firm TPG invested $1 billion in Tata
Motors' electric vehicle subsidiary.

Tata Motors has auto manufacturing and vehicle plants

in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as
in Argentina, South Africa, the United Kingdom, and Thailand. It has research and
development centers in Pune, Jamshedpur, Lucknow, Dharwad, India and South
Korea, the United Kingdom, and Spain. Tata Motors is listed on the BSE (Bombay
Stock Exchange), where it is a constituent of the BSE SENSEX index, the National
Stock Exchange of India, and the New York Stock Exchange. The company is
ranked 265th on the Fortune Global 500 list of the world's biggest corporations as of
2019.

COMPANY DETAILS
Company type Public

Traded as BSE: 500570

NSE: TATAMOTORS
NSE NIFTY 50 Constituent
Industry Automotive

Founded 1945; 79 years ago

Founder Jehangir Ratanji Dadabhoy Tata

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Natarajan Chandrasekaran (Chairman)

Martin Uhlarik (CDO)

Products Automobiles
Luxury vehicles
Commercial vehicles
Automotive parts
Pickup trucks
SUVs
Services Automotive finance
Vehicle leasing
Vehicle service
Revenue ₹350,600.15 crore (US$44 billion) (2023)[2]

Net income ₹2,414.30 crore (US$300 million) (2023)[2]

Total assets ₹336,081.38 crore (US$42 billion) (2023)[3]

HISTORY
Tata Motors was established as Tata Engineering and Locomotive Co. Ltd. in 1945 to
manufacture locomotives and other engineering products. It is a leading global
automobile manufacturing company. It is the market leader in commercial vehicles in
all segments, and it ranks among the top three in passenger cars, with winning
products in the compact, midsize, and utility vehicle segments. (Tat) In the year 1954
they made collaboration with Daimler Benz AG West Germany for manufacturing
medium commercial vehicles.
It started producing passenger vehicles in 1988. Over 4 million Tata vehicles have
been sold in India since the first model was launched. Lucknow (Uttar Pradesh),Pune
(Maharashtra), Jamshedpur (Jharkhand), Dharwad (Karnataka) and Pantnagar
(Uttarakhand) are the company's manufacturing bases in India. It has established an
industrial joint venture with Fiat Group Automobiles in Ranjangaon (Maharashtra) to
manufacture both Fiat and Tata vehicles as well as Fiat powertrains, following a
strategic 10 alliance with Fiat in 2005.
Tata Motors became the first company from engineering sector of India to be listed
on the New York Stock Exchange in September 2004. Tata Motors produced India's
first indigenously manufactured Light Commercial Vehicle, India's first Sports
Utility Vehicle, and India's first entirely indigenous passenger vehicle, the Tata
Indica, in 1998. Tata Indica became India's best-selling vehicle in its segment just
two years after its launch.
Tata Motors launched the Tata Ace, India's first indigenously constructed mini–
truck, in 2005, starting a new segment. In 2008, Tata Motors acquired Jaguar Land
Rover, the English car manufacturer that produces the Land rover and Jaguar, from
Ford Tata Motors revealed its People's Car, the Tata Nano , the world's cheapest car,
in January 2008. In March 2009, the Tata Nano was officially unveiled in India. The
Nano is a world-first for the automotive industry, bringing the comfort and safety of
a vehicle within reach of tens of thousands of households.
The standard version was priced at Rs.1,00,000 in India. In March 2017, Tata
Motors and Volkswagen signed a Memorandum of Understanding to collaborate on
car development for India's domestic market. Tata Motors is traded on the New York
Stock Exchange, the National Stock Exchange of India, and Bombay Stock
Exchange. It is a part of the BSE SENSEX index. As of 2019, the company is ranked
265th on the Fortune Global 500 list of the world's most powerful companies
Tata Motors Limited (TML), a $42 billion organisation, is India’s largest automobile
company and is a leading global manufacturer of cars, utility vehicles, buses, trucks
and defence vehicles. Incorporated in India in the year 1945, Tata Motors is a part of
the over $100 billion Tata Group founded by Jamsetji Tata in 1868. Recognised for
its world-class quality, originality, engineering and design excellence, the Company
is on the path of shaping the future of mobility in India. Sustainability and the spirit
of ‘giving back to society’ is our guiding philosophy and good corporate citizenship
is strongly embedded in our DNA.
With a large global footprint, the Company has consolidated its position as the Tata
Motors Group through mergers and acquisitions.
It has a network of 76 subsidiaries in India and internationally, which provide a host
of engineering and automotive solutions. Some of the world’s most iconic brands,
including Jaguar Land Rover in the UK and Tata Daewoo in South Korea form part
of the automotive operations of the Group.
 FOUNDER

Jamshedji Nusserwanji Tata (3 March 1839 – 19 May 1904) was a pioneering Indian
industrialist who founded the Tata Group, India's biggest conglomerate company.
Named the greatest philanthropist of the century by several polls and ranking lists, he
established the city of Jamshedpur. He is regarded as the Father of Indian Industry.
Born into a Zoroastrian Parsi family in Navsari, his family had fled persecution in
Persia, finding refuge in India. Despite coming from a family of priests, Tata broke
tradition to become the first businessman in his family, establishing an export trading
firm in Mumbai. Tata's education was notable for its Western influence, which he
received after showing exceptional abilities in mental arithmetic. His graduated
from Elphinstone College in Mumbai as a "Green Scholar."
Tata was a philanthropist, particularly in the fields of education and healthcare. His
donations and foundations laid the groundwork for modern Indian industry and
philanthropy. Tata's legacy includes the city of Jamshedpur, named in his honor, and
a lasting impact on India's industrial and social landscape. He married Hirabai
Daboo, and their sons, Dorabji Tata and Ratanji Tata, continued his legacy within the
Tata Group. Tata's contributions were recognized posthumously, including being
ranked first in the "Hurun Philanthropists of the Century" (2021) by total donations
of $102 billion (in 2021 prices) with the start of his key endowments back in 1892.
 VISION
The vision Of Tata Motors is to become the most aspirational Indian auto
brand, consistently winning, by
 Delivering superior financial returns
 Driving customer expectations, and
 Exceeding customer expectations, and
 Creating a highly engaged work force
 And to be a world class corporate constantly furthering the interest of all
its stakeholders

MISSION

The Mission of Tata motors is to sheerly passionate in predicting and

providing the best vehicles and experiences that excite their global customers.
To strive towards mobility solutions with passion to facilitate
the quality of life
We innovate, with passion, mobility solutions to enhance quality of life

GOALS

To deliver value through our products and services and to be the most trusted
global network for our customers and suppliers.
To be a responsible value-creation partner for all stakeholders. To innovate
mobility solutions with a passion to enhance the quality of life.

ACHIEVEMENT

 Excellence in Internal Communication at Corporate

Communication Vision & Innovation Summit 2023
 Tata International wins ET Ascent – Stars of the Industry’s CFO
Leadership Awards
 Stryder Cycles awarded Most Trusted Brands of India 2022 by
Team Marksmen
 TIVA – India’s Most Trusted Brand Awards 2022
 PRODUCTS

Passenger vichicles

 Hatchback
 Tata tiago
 Tata altroz

 Sedan
 Tata tigor

 Suv/crossover
 Tata puch
 Tata nexon
 Tata harrier
 Tata safari

 Electric
 Tata nexon EV
 Tata tigor EV
 Tata tiagor EV

Commercial vehicles

 Tata Ace
 Tata Ace Zip
 Tata Ace EV
 Tata Super Ace
 Tata Intra
 Tata Intra V10
 Tata Intra V20
 Tata Intra V30
 Tata Intra V50
 Tata Xenon XT
 Tata Yodha
 Tata Ace Mega
 Tata Iris
 COMPETITORS
1. Mahindra & Mahindra
2. Maruti Suzuki
3. Chevrolet
4. Audi
5. Ford
6. Hyundai
7. Mitsubishi Motors
8. Volvo
9. Ashok Leyland
10.Honda
11.Tesla
12.Toyota
13.Eicher Motors Ltd
14.General Motors
15.PACCAR
16.Tata Motors
17.Volkswagen
 FINANCIAL STATEMENT ANALYSIS
Financial statement analysis is the process of reviewing and analysing a companies.
financial statement to make better economics decisions to earn incoming future.
These statements includes income statement, balance sheet ,statement of cash flows,
notes to account and a statement of change in equity. Financial statement analysis is
a method or process involving specific techniques for evaluating risks, performance
financial health future prospects of an organisation.

OBJECTIVET:
The objectives of financial statement analysis are as follows:-
1. Judging the operation of efficiency of the business
2. Measuring the profitability
3. Measuring the short term and long term financial position
4. Indicating the trend of achievements
5. Assessing the growth potential of the business
6. Inter firm comparison

TECHNIQUES/TOOLS:
There are different tools of financial statement analysis available for analyst the
following tools are used to measure operational efficiency and financial soundness of
an enterprise.
The most common techniques are as follows :
1. Comparative financial statement
2. Common size statement
3. Ratio analysis
4. Cash flow statement
1.COMPARITIVE FINANCIAL STATEMENT :

Comparative financial statement is used to compare the items of financial statements

i.e. profit and loss account and position statement i.e. balance sheet for assertaining
the trend of the performance and profitability of an enterprise are known as
comparative financial statement
• Comparative income statement
It is a statement which shows in percentage term the total of income earned and
expenses in Accord during two or more accounting periods.
• Comparative balance sheet
It is a statement showing asset and liabilities of the business for two or more
accounting period. It also shows the percentage change in the monetary values of
asset and liabilities.

2 COMMON SIZE STATEMENT

The statement where in figures reported are converted into percentage to some
common base is known as common size statemen. Each percentage shows the
relation of the individual item to it’s respective total
• Common size income statement
The statement in which sales figure is assume to be 100 and all other figures are
expressed as a percentage of sales is known as common size income statement.
• Common size balance sheet
In common size balance sheet the total of asset and liabilities are resume to be 100
and figures are are expressed to be percentage of the total.

3.RATIO ANALYSIS :

The mathematical expressions that shows the relationships between various groups
of items contained in the financial statement is known as ratio analysis .
Ratio analysis there are five type of ratios namely profitability ratio solvency ratio
liquidity turnover and earning ratio
4.CASH FLOW STATEMENT:-
It shows the inflows and out flows of cash and cash equivalent of an enterprise buy
classifying cash flows into operating investing and financing activities during a
particular period and the analysis reasons for changes in balance of cash between the
two balance sheet dates.
 RESEARCH OBJECTIVE

The following are the objectives of this research :

 Evaluate the financial health and performance of the company.

 Assess the company's profitability, liquidity, and solvency.

 Analyze trends and patterns in financial data over time.

 Identify strengths, weaknesses, opportunities, and threats (SWOT analysis).

 Provide insights for investors, creditors, and management to make informed

decisions.

 Compare the company's performance with industry benchmarks and

competitors.

 Assess the efficiency of the company's operations and resource utilization.

 Identify areas for improvement and potential risks.

 Support forecasting and planning activities.

 Communicate financial performance and outlook to stakeholders effectively.

 RESEARCH METHODOLOGY

1. Data Collection: Gather financial statements including the balance sheet,

income statement, and cash flow statement for the period under analysis.

2. Data Standardization: Ensure consistency in reporting formats and accounting

principles across the financial statements.

3. Ratio Analysis: Calculate and analyze key financial ratios such as profitability
ratios (e.g., ROA, ROE), liquidity ratios (e.g., current ratio, quick ratio),
solvency ratios (e.g., debt-to-equity ratio), and efficiency ratios (e.g., inventory
turnover, receivables turnover).

4. Trend Analysis: Examine trends in financial data over time to identify patterns
and anomalies.

5. Comparative Analysis: Compare the company's financial performance with

industry benchmarks, competitors, and historical performance.

6. Vertical and Horizontal Analysis: Conduct vertical analysis (percentage

analysis of each line item in the financial statements) and horizontal analysis
(comparison of financial data over multiple periods) to assess changes and
relationships.

7. Qualitative Analysis: Consider qualitative factors such as industry trends,

regulatory environment, management quality, and market positioning.

8. Risk Assessment: Identify financial risks such as liquidity risk, credit risk,
market risk, and operational risk.
 Comparative profit and loss

PARTICULAR March March Difference Percentage

2022 20223 change%
INCOME
Revenue from 7,184.53 8,179.50 994.57 13.84%
operations
Other income 276.65 341.55 64.9 23.45%
Total income 7,461.38 8,521.05 1,059.67 14.20%
Expense
Cost of material 2,756.03 3,227.53 471.5 17.10%
consumed
Purchase of stock in 1,117.50 1,177.87 60.37 5.40%
trade
Change in (176.71) (28.48) 148.23 83.88%
inventories of finish
goods stock in trade
and work in
progress

Employees benefit 655.82 678.71 22.89 3.49%

expenses
Finance cost 9.14 18.67 9.53 104.26%
Depreciation and 143.40 160.39 16.99 11.84%
amortization expenses
Other expenses
Advertisement and 643.50 621.02 22.48 3.49%
publicity
Others 629.39 768.74 139.35 22.14%
Total expenses 5,778.07 6,624.74 846.67 14.65%
Profit before tax 1,683.31 1,896.31 213 12.65%
Tax expenses
Current tax 299.75 378.97 79.22 26.42%
Deferred tax 1.67 84.41 82.74 4,954.49%
Total tax expenses 301.42 463.38 161.96 34.95%

Net profit for the year 1,381.89 1,432.93 51.04 3.69%

 OBSERVATION

 Operating income during the year rose 13.84%.On a year-on-

year (YoY) basis.
 The company’s operating profit increased by 8.3% YoY during
the fiscal. Operating profit
 Margins witnessed a fall and stood at 19.9% in FY23 as against
20.9% in FY22.
 Depreciation charges increased by 5.3% and Finance costs
increased by 25.3% YoY, Respectively.
 Other income grew by 20.9% YoY.
 Net profit for the year grew by 3.69% YoY.

COMPARITIVE BALANCE SHEET

PARTICULAR March 2022 March 2023 Absolute Percentage

change change
 Equity and
liabilities
Shareholder’s
fund
Equity share 176.74 176.79 0.05 0.02%
capital
Total share capital 176.74 176.79 0.05 0.02%
Reserve 5,214.48 5,687.08 -472.6 9.06%
and
surplus
Total reserve and 5,214.48 5,687.08 -472.6 9.06%
surplus
Total 5,391.22 5,863.87 -472.65 8.76%
shareholder’s fund
Non current
liabilities
Long term 19.62 249.10 -229.48
borrowings
Deferred tax 0.00 70.04 -70.04 -
liabilities (Net)
Other long term 1.37 44.59 -43.22 11,681%
liabilities
Long term 55.55 56.57 -1.02 1.83%
provisions
Total non current 76.54 420.30 -343.76 449.12%
liabilities
Current liabilities
Short term 151.96 261.88 -109.92 72.33%
borrowings
Trade payables 1,480.70 1,581.47 -100.77 6.80%
Other 269.31 342.14 -72.83 27.04%
current
liabilities
Short term 134.43 122.34 12.09 8.99%
provisions
 Total current 2,036.40 2,307.83 -271.43 13.32%
liabilities
Total capital and 7,504.16 8,592.00 1,087.84 14.49%
liabilities
Assets
Non current assets
Tangible assets 1,131.00 1,329.19 -198.29 151.36%
Intangible assets 26.42 23.44 2.98 11.27%
Capital work in 107.26 128.48 -21.22 19.78%
progress
Other assets 47.39 46.37 1.02 2.15%
Fixed assets 1,312.07 1,527.48 -251.41 19.16%
Non current 3,122.76 4,327.70 1,204.94 38.58%
investments
Deferred tax 17.45 0.00 17.45 100%
assets (Net)
Long term loans 16.37 0.00 16.37 100%
and advances
Other non current 205.52 102.66 102.86 50.04%
assets
Total non current 4,674.17 5,957.84 1,283.67 27.46%
assets
Current assets
Current 451.14 679.38 -228.24 50.59%
investments
Inventories 1,114.16 1,237.96 -1,123.8 100.86%
Trade receivable 281.24 454.55 173.31 61.62%
Cash and cash 834.74 136.18 698.56 83.68%
equivalent
Short term loans 1.75 0.00 1.75 100%
and advances
Other 146.96 126.09 20.87 14.20%
current
assets
 Total current 2,829.99 2,634.16 195.83 6.91%
assets
Total assets 7,504.16 8,592.00 -1,087.84 14.49%

OBSERVATION

 The companies current liability during the year the FY 23

 stood at rupees 2307.83 as compared to 2036.40 in FY 22 they are
by witnessing and increase of 13.32%
 Total non current liability is stored at 420.30 in FY 23 as compared
to 76.54 in FY 22 a growth of 449.12%
 Current asset fell 6.91% and stored at 263 4.16 wife sex asset rows
up to 19.16% and stood at 1527.48 in FY 23

 Ove all the total asset and liabilities for FY 23 stored at 8592.00 as
compared to 7504.16 during FY 22 there by witnessing a growth of
14.49%
 COMMON SIZE PROFIT AND LOSS

PARTICULAR March 2022 March 2023 March March

2022 2023
INCOME
Revenue 7,184.73 8,179.50 100% 100%
from
operations
Other income 276.65 341.55 3,85% 4.17%
Total income 7,461.38 8,521.05 103.85% 104.17%
Expenses
Cost of material 2,756.03 3,227.53 38.35% 39.45%
consumed
Purchase of stock 1,117.50 1,177.87 155% 14.40%
in trade
Change in (176.71) (28.48) 2.45% 0.34%
inventory of
finish goods in
trade and work in
progress
Employees 655.82 678.71 9.12% 8.29%
benefit expenses
Finance cost 9.14 18.67 0.12% 0.22%
Depreciation and 143.40 160.39 1.99% 1.96%
amortization
expenses
Other expenses
Advertisement 643.50 621.02 8.95% 7.59%
and publicity
Others 629.39 768.74 8.76% 9.39%
Total expenses 5,778.07 6,624.74 80.42% 80.99%
Profit before tax 1,683.31 1,896.31 23.42% 23.18%
Tax expenses
 Current tax 299.75 378.97 4.17% 4.63%
Deferred tax 1.67 84.41 0.02% 1.03%
Total tax 301.42 463.38 4.19% 5.66%
expenses
Net profit for 1,381.89 1,432.93 19.23% 17.59%
the year

OBSERVATIONS

 Revenue from operations in FY 23 issued at 8179.50 as compared to

7184.73 in FY 22
 Total income increase 8521.05 in FY 23 as compared to 7461.38
in FY 22
 Net profit for the year witness and increase and stored at 143 2.93 in
FY 23 as compared to 1381.89 in FY 22

COMMON SIZE BALANCE SHEET

 Particular March 2022 March 2023 March March
2022% 2023%
Equity and
liabilities
Shareholder’s
fund
Equity share 176.74 176.79 2.35% 2.05%
capital
Total share 176.74 176.79 2.35% 2.05%
capital
Reserve and 5,214.48 5,687.08 69.48% 66.19%
surplus
Total reserve 5,214.48 5,687.08 69.48% 66.19%
and surplus
Total 5,391.22 5,863.87 71.84% 68.24%
shareholder’s
fund
Non current
liabilities
Long term 19.62 249.10 0.26% 2.89%
borrowings
Deferred tax 0.00 70.04 0 0.81%
liabilities (Net)
Other long term 1.37 44.59 0.01% 0.51%
Liabilities
Long term 55.55 56.57 0.74% 0.65%
provisions
Total non 76.54 420.30 1.01% 4.89%
current
liabilities
Current liabilities
Short term 151.96 261.88 2.02% 3.04%
borrowings
Trade payables 1,480.70 1,581.47 19.73% 18.40%
 Other current 269.31 342.14 3.58% 3.92%
liabilities
Short term 134.43 122.34 1.79% 1.42%
provisions
Total current 2,036.40 2,307.83 27.13% 26.86%
liabilities
Total capital and 7,504.16 8,592.00 100% 100%
liabilities
Asset
Non current
assets
Tangible assets 1,131.00 1,329.19 15.07% 15.47%
Intangible assets 26.42 23.44 0.35% 0.27%
Capital work in 107.26 128.48 1.42% 1.49%
progress
Other assets 47.39 46.37 0.63% 0.53%
Fixed assets 1,312.07 1,527.48 17.48% 17.77%
Non current 3,122.76 4,327.70 41 61% 50.36%
investments
Deferred tax 17.45 0.00 0.23% 0
assets
Long term 16.37 0.00 0.21% 0
loans and
advances
Other non 205.52 102.66 2.73% 1.19%
current
assets
Total non 4,674.17 5,957.84 62.28% 69.34%
current
assets
Current assets
Current 451.14 679.38 6.01% 7.90%
investments
Inventories 1,114.16 1,237.96 14.84% 14.40%
Trade receivable 281.24 454.55 3.74% 5.29%
Cash and cash 834.74 136.18 11.12% 1.58%
equivalent
Short term loans 1.75 0.00 0.02% 0
and advances
Other current 146.96 126.09 1.95% 1.46%
assets
Total current 2,829.99 2,634.16 37.71% 30.65%
assets
Total assets 7,504.16 8,592.00 100% 100%

OBSERVATION

 Total shareholders fun witness and increase and stood at 586 3.87
in FY 23 as compared to 5391.22 in FY 22
 Total current liabilities at 2307.83 in FY 23 as compared to
2036.40 in FY 22
 Total current asset witnessed a fall and stored at 263 4.16 in FY 23
as compared to 2,829.9 in FY 22
 Over all total assets witness and increase of 8592.00 in FY 23
as compared to 7504.16 in FY 22
 RATIO ANALYSIS

SOLVENCY RATIO

1. Current Ratio- current assets/current liabilities

As at 31 March 2022- 2,829.99/2,036.40 = 1.39

As at 31 March 2023-2,307.83/2,634.16= 0.87

2. Quick Ratio- Quick assets/Liabilities

As at 31 March 2022-1,115.98/1,328.55 =0.83

As at 31 March 2023-1,396.2/2634.16=0.53

PROFITABILITY RATIO

1,Operating profit ratio- operating profit/net sale×100

As at 31 March 2022- 9546.60/9,492.76= 100.56%

As at 31 March 2023- 10888.08/10808.03×= 100.74%
2. Return on asset ratio- Net profit(after tax)/Total assets×100

As at 31 March 2022- 1,381.89/7,504.16×100 = 18.41%

As at 31 March 2023-1,432.93/8,592.00= 16.67%

3. Net profit ratio- Net profit(after tax)/Revenue from operations

net sales×100

As at 31 March 2022-1,38.89/7,137.85×100= 19.35%

As at 31 March 20223- 1,432.93/8,110.11×100= 17.66%

ACTIVITY OR TURNOVER RATIO

1. Inventory turnover ratio- revenue from operations

(net sale)/inventories

As at 31 March 2022-7,138.85/1,114.16= 6.41

As at 31 March 2023-8,110.11/1,237.96= 6.55

2. Fixed asset turnover ratio- revenue from operations/fixed assets

As at 31 March 2022-45, 996/54, 476= 0.84

As at 31 March 2023-8,110.11/1,527.48= 5.30
3. Current asset turnover ratio- Revenue from
operations(net sale)/Current assets

As at 31 March 2022- 7,138.85/2829.99 = 2.52

As at 31 March 2023- 8,110.11/2,307.83= 3.51

4. Total assets turnover ratio- Revenue from operations(net

sales)/Total assets

As at 31 March 2022- 7,138.85/7,504.16= 0.95

As at 31 March 2023- 8,110.11/8,592.00= 0.94

FINANCIAL RATIO

1. Debt to equity ratio – Long term debt/Equity shareholders

fund Long term debt = Debentures
Shareholders fund = Equity share capital + Reserve and surplus

Year ended March 2022- data of debenture is not provided and on

official website of Dabur the debt to equity is mentioned as NIL

2. Fixed Asset to long term: Fixed assets/long term funds

Long term funds= Equity share capital + Reserve and surplus
+Debenture
As at 31 March 2022- 4,674.17/5,391.22 =0.86

As at 31 March 2023-1,527.48/5,863.77=0.26

3 Proprietor’s Ratio- proprietor’s fund/Total assets

Proprietor’s fund= Equity share capital + Reserve and surplus

As at 31 March 2022- 5,391.22/7,504.16 = 0.72

As at 31 March 2023- 5,863.77/8,592.00= 0.68

RESULTS AND FINDING

Current ratio :
The companies current ratio deteriorated and stored at 0.87 during a
FY23, as compared to 1.39 in FY 22
The current ratio measures the companies ability to pay the short term
and long term obligations

Quick Assets-deteriorated and 0.53 FY23 as compared to 0.83 refer

FY22
Profitability ratio :
Return on asset ratio-the return on asset for the company declined down
16.67 in FY 23 as compared to 18.41 in FY 22

Net profit ratio-net profit ratio decline and stored at 17.66% in FY 23 as

compared to 19.3 5% in FY 22
Activity or turnover ratio :
Inventory turnover ratio-inventory turnover ratio increase nfy 23 as
compared to 6.41% in FY 22
Fixed asset turnover ratio fixed asset turn over ratio increase 5.30 in FY
23 as compared to 0.84 in FY 22
Current asset turnover ratio current asset turnover ratio increase and
stood at 3.51 in FY 23 as compared to 2.5 2 in FY 22
Total asset turnover ratio total asset turnover ratio decline 0.94 in FY 23
as compared to 0.95 in FY 22
Financial ratio :
 Dead to equity ratio-dead to equity ratio is too at 0.00 in FY 23 as
compared to 0.00 in FY 22
Fixed asset to long term ratio fix acid to long term ratio decline 0.26 in
FY 23 as compared to 0.86 in FY 22
Proprietary ratio proprietor ratio show declines 0.68 in FY 23 as
compared to 0.72 in FY 22

LIMITATIONS

1. Historical Data: Financial statements reflect past performance and

may not accurately predict future outcomes.
2. Limited Scope: They may not capture all aspects of a company's
operations, especially intangible assets like brand value or
employee morale.

3. Subjectivity: Analysis can be influenced by accounting methods,

estimations, and management biases, leading to subjective
interpretations.

4. External Factors: Economic conditions, industry trends, and

regulatory changes can affect financial statement analysis but may
not be fully reflected in the numbers.

5. Comparability Issues: Comparing financial statements of

companies in different industries or regions can be challenging
due to variations in accounting standards and practices.

6. Manipulation: Companies may manipulate financial statements to

present a more favorable picture, making it difficult to rely solely
on the numbers.

7. Lack of Future Orientation: Financial statements focus on the past

and present, offering limited insight into future prospects and
risks.
 REFFERENCE

I would like to mention the source is used in making this report at LG

company

Websites:-
www.lg.com
 CONCLUSION

It is concluded that financial statement analysis is the basic and most

important part of any business. It tells the reader about the financial
position of the particular company. As the data indicate that LG
company that has continued to grow and gain trust of its customers.
LG Company's prudent management of expenses is reflected in its
strong profit margins, showcasing operational efficiency and cost
control measures.
The financial position of the company could be assessed by
examining its liquidity, profitability and growth liquidity is the ability
of the firm to meet its liabilities. It helps the creditors, bank and other
financial institutions to make decision on lending to the concerned
firm profitability.
The conclusion of the report would summarize key findings, financial
performance, and any significant changes or trends observed. It may
also provide insights into the company's financial health, liquidity,
profitability, and potential risks or opportunities.