Birla College of Arts, Science and Commerce,

Kalyan
PROJECT ON
CONSOLIDATED BALANCE
SHEET
(TATA MOTORS LTD.)
In the subject

ADVANCED FINANCIAL
ACCOUNTING
SUBMITTED TO

UNIVERSITY OF MUMBAI,
FOR SEMESTER I of

MASTER OF COMMERCE

BY

Miss. Divya prakash

waghmare.
(Roll No.66, Seat No..)
UNDER THE GUIDANCE OF

Mr. Bapat Sir.

YEAR: 2015 16

DECLARATION BY THE STUDENT

I, Divya prakash waghmare. Student of M Com Part-I Roll Number
66 and Seat Number---------hereby declare that the project for the Paper Advanced
financial accounting titled, Consolidated balance sheet of - Tata motors ltd.
submitted by me for Semester I during the academic year 2015-16 is based on
actual work carried out by me under the guidance and supervision of Mr. Bapat Sir.
I further state that this work is original and not submitted anywhere else for any
examination.

Signature of Student

ACKNOWLEDGEMENT
I thankful to those who were involved directly or indirectly in this
Work. A great teacher is not simple one who imparts knowledge to his student. But
one who awakens their interest in it.
This idiom without doubt fit with Prof. Bapat who has been my teacher
guide. He guides me and gave knowledge in details & helps me to make a very
effective project. So from bottom of my heart, I thank him for his precious time
that he spent for me for my project work.
I am grateful to my parents & friends who encouraged & inspired me at every
stage of project work by providing immeasurable help, care & moral support.

Internal Assessment: Project 40 Marks

Name of the Student

Class

Roll
Numb
er

First name

: Divya

Fathers Name

: prakash

Surname

: waghmare

MCOM
PART I

Seat
Numbe
r

66

Subject: ADVANCED FINANCIAL ACCOUNTING

Topic for the Project: Consolidated balance sheet of - Tata motors ltd

Marks
Awarded
Documentation
Internal Examiner
(Out of 10 Marks)
Documentation
External Examiner
(Out of 10 Marks)
Presentation
Internal Examiner
(Out of 10 Marks)

Viva
Interaction

and

External
Examiner
(Out of 10 Marks)

TOTAL

MARKS

Signature

(Out of 40)

INDEX
Sr. No.

Topic name

Page No.

1
2
3
4
5

Introduction
Definition
When to consolidate
Importance
Benefits

7
8
9
10
11

6
7
8
9
10
11
12

Limitations
Example
Tata motors - An Introduction
Consolidated balance sheet of Tata motors
List of subsidiaries
Conclusion
References

11
12
14
17
19
21
22

INTRODUCTION

Consolidation of financial statement implies preparation of a single

balance sheet & profit and loss account of a holding company and its subsidiaries
by aggregating its all items of assets, liabilities, incomes, expenses etc. This is also
known as Group Accounts.

A holding company is required to present to its shareholders

consolidated balance sheet of holding companies and its subsidiaries. Consolidate
balance sheet is nothing but addicting of up or combining the balance sheet of
holding & its subsidiary together. However assets and liabilities are straight
forward i.e. added line to line and combination of share capital, reserves and
accumulated losses are not directly added in consolidated balance sheet.

Definition:
A statement that shows the financial position of a parent company and
its subsidiary companies at a specified date by listing the asset balances and the
claims on such assets Businesses are often operated as a group of companies
and the consolidated balance sheet shows the combined results of the group.

Preparation of consolidated balance sheet

The following points need special attention while preparing consolidated balance
sheet:
1) Share of holding company and share of minority (outside shareholders.
2) Date of balance sheet of holding company and that of various subsidiaries must
be same. If they are not so necessary adjustment must be made before
consolidation.
3) Date of acquisition of control in subsidiary companies.
4) Inter company owing.
5) Revaluation of fixed assets as on date of acquisition, depreciation, adjustment
on revaluation amount etc.

When to Consolidate
A company must issue consolidated financial statements
whenever it owns a controlling stake in another business -- that is, whenever it
owns more than 50 percent of that business. If the parent company owns 100
percent of the subsidiary, this is pretty straightforward. Complications arise,
however, if the parent company owns a controlling stake with less than 100 percent
ownership. Part of the subsidiary belongs to someone else, and that must be
reflected on the balance sheet. The parent company handles this by consolidating
the balance sheet as usual, then creating a separate account in the owners' equity
section of the sheet. This account, called "minority interest" or "non-controlling
interest," is equal to the value of the portion of the subsidiary that the parent
company doesn't own. In essence, the parent company claims all of the subsidiary's
assets and liabilities on the balance sheet and then "gives some of the value back"
in the equity section.

IMPORTANCE

Sticking to the standalone figures to judge a company, therefore, may

prove rather disastrous sometimes. Given that a company may have subsidiaries
aplenty, whether or not in the same line of business, where these are profitable,
they add to shareholder's wealth. But poor performance of a subsidiary will affect
the earnings of the parent. Companies can even suffer a loss on a consolidated
basis while making profits independently and vice versa. Take the case of
Shoppers' Stop. Its nascent business of opening hypermarkets is yet to break even.
A Rs. 12-crore standalone profit for the June '11 quarter slipped into losses
of Rs. 1.5 core on a consolidated level after incorporating the hypermarket
subsidiary. Therefore, where a company declares consolidated figures, especially
on a quarterly basis, comb through it. Compare consolidated numbers to the
standalone figures to judge whether the company has benefited from the subsidiary
activities, which subsidiary adds to or detracts from the company. It may just sway
your investment decision.

10

Benefits
Consolidated financial statements are presented primarily for the benefit of the
shareholders, Creditors, and other resource providers of the Parent.
Significantly, consolidated financial statements often represent the only means of
obtaining a
Clear picture of the total resources of the Combined entity that are under the
control of the
Parent company.

Limitations
While consolidated financial statements are Useful, their limitations also must be
kept in Mind.
Some information is lost any time data sets are aggregated; this is particularly
true when the information involves an aggregation across companies that have
substantially different operating characteristics.

11

Example:

Let's assume Company XYZ is a holding company that owns four other
companies: Company A, Company B, Company C, and Company D. Each of the
four companies pays royalties and other fees to Company XYZ.
At the end of the year, Company XYZ's income statement reflects a large
amount of royalties and fees with very few expenses -- because they are recorded
on the subsidiary income statements. An investor looking solely at Company
XYZ's holding company financial statements could easily get a misleading view of
the entity's performance.
However, if Company XYZ consolidates its financial statements -"adding" the income statements, balance sheets, and cash flow statements of XYZ
and the four subsidiaries together -- the results give a more complete picture of the
whole Company XYZ enterprise.
In Figure 1 below, Company XYZ's assets are only $1 million, but the
consolidated number shows that the entity as a whole controls $213 million in
assets.

12

In the real world, generally accepted accounting principles (GAAP) require

companies to eliminate intercompany transactions from their consolidated
statements. This means they must exclude movements of cash revenue, assets, or
liabilities from one entity to another in order to avoid double counting them. Some
examples include interest one subsidiary earns from a loan made to another
subsidiary, "management fees" that a subsidiary pays the parent company,
and sales and purchases among subsidiaries.

CASE STUDY
13

TATA MOTORS Ltd.

Tata Motors Limited is Indias largest automobile company. It is the leader in

commercial vehicles and among the leaders in passenger vehicles in India with
winning products in the compact, midsize car and utility vehicle segments. It is
also the worlds fourth largest bus and fifth largest truck manufacturer.

CONSOLIDATED BALANCE SHEET

TATA MOTORS Ltd.

14

Mar 2014 Mar 2013 Mar 2012 Mar 2011 Mar 2010 Mar 2009
SOURCES OF FUNDS
:
Share Capital

643.78

638.07

Reserves Total

64,959.67

36,999.23 32,063.75 18,533.76 7,635.88 5,426.59

Equity Share Warrants

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3.06

0.00

0.00

65,603.45

37,637.30 32,698.50 19,171.47 8,206.48 5,940.64

Minority Interest

420.65

370.48

Secured Loans

14,631.05

17,051.67 15,774.04 18,745.66 21,290.03 13,705.50

Unsecured Loans

46,011.23

36,664.04 31,374.92 14,064.89 13,818.33 21,268.35

Total Debt

60,642.28

53,715.71 47,148.96 32,810.55 35,108.36 34,973.85

Policy Holders Fund

0.00

0.00

Other Liabilities

14,787.15

11,621.30 8,529.96 7,118.36 191.15

Total Liabilities

141,453.53 103,344.79 88,684.55 59,346.98 43,719.50 41,317.52

Equity
Money
Total
Funds

Application
Shareholders

APPLICATION
FUNDS :

634.75

307.13

0.00

634.65

246.60

0.00

570.60

213.51

0.00

514.05

403.03

0.00
0.00

OF

Gross Block

137,907.05 107,234.38 93,872.88 75,047.75 67,245.67 62,188.03

Less:
Accumulated
68,815.38
Depreciation
Less: Impairment of
0.00
Assets

51,722.65 49,512.47 39,698.70 34,232.39 33,269.05

0.00

0.00

0.00

0.00

0.00

Net Block

69,091.67

55,511.73 44,360.41 35,349.05 33,013.28 28,918.98

Lease Adjustment

0.00

0.00

Capital Work in Progress33,262.56

0.00

0.00

0.00

0.00

18,453.55 15,945.83 11,456.79 8,915.92 10,533.00

Producing Properties

0.00

0.00

0.00

0.00

0.00

0.00

Investments

10,686.67

8,764.73

27,270.89

21,036.82 18,216.02 14,070.51 11,312.03 10,950.60

8,917.71 2,544.26 2,219.12 1,257.40

Current Assets, Loans &

Advances
Inventories

15

Sundry Debtors

10,574.23

10,959.60 8,236.84 6,525.65 7,191.18 4,794.86

Cash and Bank

29,711.79

21,114.82 18,238.13 11,409.60 8,743.32 4,121.34

Loans and Advances

18,716.14

13,499.99 12,244.31 8,875.41 15,199.11 13,455.65

Total Current Assets

86,273.05

66,611.23 56,935.30 40,881.17 42,445.64 33,322.45

Current Liabilities

69,001.78

57,197.08 47,311.21 34,439.58 34,077.33 23,980.16

Provisions

7,970.68

7,788.16

76,972.46

64,985.24 54,081.59 39,571.07 41,720.83 32,120.18

9,300.59

1,625.99

2,853.71 1,310.10 724.81

1,202.27

Miscellaneous Expenses
0.00
not written off

0.00

0.00

86.08

Deferred Tax Assets

2,347.08

4,428.93

9,745.83 2,759.64 2,399.59 1,605.10

Deferred Tax Liability

1,572.33

2,048.21

7,371.57 4,223.43 3,553.22 2,285.31

Net Deferred Tax

774.75

2,380.72

2,374.26 -1,463.79 -1,153.63 -680.21

Other Assets

18,337.29

16,608.07 14,232.63 10,150.57 0.00

Total Assets

141,453.53 103,344.79 88,684.55 59,346.98 43,719.50 41,317.52

Contingent Liabilities

4,033.89

Less : Current Liabilities

and Provisions

Total
Liabilities

Current

Net Current Assets

3,902.82

6,770.38 5,131.49 7,643.50 8,140.02

0.00

0.00

3,947.23 6,886.78 6,474.50 6,220.54

CONSOLIDATED BALANCE SHEET

AS AT MARCH 31, 2013

16

0.00

(Rs. in cores)
As
March 31, 2013

Note
I EQUITY AND LIABILITIES
1.Shareholders' Funds
(a)Share capital
2
(b
Reserves and surplus
3
)

638.07
36,999.2
3

As
March
2012

at
31,

634.75
32,063.75
37,637.30 32,698.50
370.48
307.13

2.Minority Interest
3.Non-current Liabilities
(a)Long-term borrowings

at

(b
Deferred tax liabilities (net) 6
)
(c)Other long term liabilities 7
(d
Long-term provisions
9
)

32,110.0
7

27,962.48

2,019.49

2,165.07

3,284.06

2,297.57

8,319.15

6,232.39
45,732.77 38,657.51

4.Current Liabilities
(a)Short-term borrowings

(b
Trade payables
)

11

(c)Other current liabilities

(d
Long-term provisions
)

10

11,612.2
1
44,780.1
4
22,140.9
6
7,752.59

10,741.59
36,686.32
19,069.78
6,770.38
86,285.90 73,268.07
170,026.4 144,931.21
5

TOTAL

17

II ASSETS
1.Non-Current Assets
(a)Fixed Assets
(I) Tangible assets

12

(ii) Intangible assets

13

32,385.7
6
18,680.1
5

(iii Capital
work-in) progress
Intangible assets under
(iv)
development

4,309.26
14,108.4
4
69,483.6
1

(b Goodwill
(on
14
) consolidation)
(c)Non-current investments 15
(d
Deferred tax assets (net) 6
)
Long-term
loans
and
(e)
17
advances
(f) Other non-current assets 19
2.Current Assets
(a)Current investments
(b
Inventories
)
(c)Trade receivables

22

(d
Cash and bank balances
23
)
Short-term
loans
and
(e)
18
advances
(f) Other current assets
20
TOTAL

18

3,121.51
12,824.32
56,212.50
4,093.74

1,515.40

1,391.54

4,428.93

4,539.33

7,542.32
20,969.0
1
10,942.6
6
21,112.6
7
12,608.4
6
831.61

21

13,148.09

4,102.37

15,465.4
6
1,023.95

16

27,118.58

13,657.95
574.68
96,019.72 80,469.74
7,526.17
18,216.02
8,236.84
18,238.13
11,337.22
907.09
74,006.73 64,461.47
170,026.4
144,931.21
5

 Subsidiary of Tata Motors that has been consolidated

1 Jaguar Land Rover Automotive Plc

2 Jaguar Cars Overseas Holdings Ltd UK
3 Jaguar Land Rover Austria GmbH Austria
4 Jaguar Beaux NV Belgium
5 Jaguar Land Rover Japan Ltd Japan
6 Jaguar Cars South Africa (pity) Ltd South Africa
7 Jaguar Land Rover Exports Ltd UK
8 The Daimler Motor Company Ltd UK
9 The Jaguar Collection Ltd UK
10 Daimler Transport Vehicles Ltd UK
19

11 S.S. Cars Ltd UK

12 The Blanchester Motor Company Ltd UK
13 Jaguar Hispania SL Spain
14 Jaguar Land Rover Deutschland GmbH Germany
15 Land Rovers UK
16 Land Rover Group Ltd Jersey
17 Jaguar Land Rovers North America LLC USA
18 Land Rover Beaux SA/NV Belgium
19 Land Rover Ireland Ltd Ireland
20 Land Rover Nederland BV Netherlands
21 Jaguar Land Rover Portugal - Vehicles e Picas, LDA Portugal
22 Jaguar Land Rover Australia Pty Ltd Australia
23 Land Rover Exports Ltd (up to April 1, 2012) UK
24 Jaguar Land Rover Italia Spa Italy

20

CONCLUSION
Tata motors consolidated balance sheet show the companies
financials together with those of all its subsidiaries. Without consolidated financial
statements the process of evaluating a company for investment or financing
purposes would be a long complex affair that might altogether miss important
assets or liabilities. In fact, many of the arguments that occur between company
management, accounting and auditing at year end involve how the consolidation of
reports should be done in order to give the most accurate picture of the company's
financial health. It is the auditor's job to make sure this consolidation of accounting
reports accurately reflects the true condition of the company.

21

References

Bibliography:
Innovation of advanced financial accounting
Advanced financial accounting- Manna publication

Websites:

www.tatamotors.co.in
www.buinessstudies.com
www.capitaline.com
www.commerce.nic.in

22