TATA Motors Limited

Balance Sheet Data

Particulars

Rs. In crores
2006-07

2007-08

2005-06

2004-05

Fixed Assets
Capital WIP
Total Assets

7,481.32
5,948.28
13,429.60

5,375.54
2,581.65
7,957.19

4,873.65
974.49
5,848.14

4,092.92
540.99
4,633.91

Investments

2,665.83

1,174.59

1,261.50

2,126.36

19,267.35
13,644.56
5,622.79

15,812.49
8,865.40
6,947.09

11,230.14
7,992.36
3,237.78

8,179.83
7,166.84
1,012.99

6.93

11.93

13.91

21.69

Total Assets

21,725.15

16,090.80

10,361.33

7,794.95

Share Capital

385.54

385.41

382.87

361.79

8,311.98

7,336.26

5,748.60

4,035.37

468.31

249.96

173.93

63.05

11,584.87

7,301.90

3,379.14

2,714.20

974.45

817.27

676.79

620.54

21,725.15

16,090.80
-

10,361.33

7,794.95

Current Assets Loans & Advances

Less:Current Liabilities & Provisions
Net Current Assets
Misc. Expenditure not written off

Reserves & Surplus

Minority Interest
Loan Funds & Other Liabilities
Deferred tax Liability
Total Liabilities
Other Data
1. Details of Investments
Particulars
Cost
Market Value / Fair Value
Appreciation
Tax
Net of Tax appreciation

2007-08
Quoted

Unquoted

697.93
2,763.95
2,066.02
2,066.02

1,553.67
4,750.00
3,196.33
22.66%
2,472.04
4,538.06

2. Contingent Liability
Contingent Liabilities
Claims not acknowledged as debts
Income Tax matters
Excise duty, Sales Tax & Other matters

Amount (2007-08)
478.59
453.37
35.34

Probability

Tax Rate
20%
50%
0.30

Net of Tax CL
33.66%
33.66%

63.50
226.69
7.03
297.22

TATA Motors Limited

P & L Data
Particulars
Net Sales

2007-08

2006-07

(Rs. in Crores)
2004-05

2005-06

35,651.48

32,426.41

23,961.72

19,666.78

267.48

153.18

243.55

133.94

Total Income

35,918.96

32,579.59

24,205.27

19,800.72

Cost of Goods Sold

28,495.47

25,895.04

18,886.82

15,606.32

2,745.16

2,415.53

1,777.43

1,429.94

Interest & Finance Charges

743.06

405.81

246.01

169.66

Depreciation / amortisation

782.07

688.09

623.33

533.94

66.91

86.98

79.15

78.83

101.58

116.98

33.60

12.78

32,934.25

29,608.43

21,646.34

17,831.47

2,984.71

2,971.16

2,558.93

1,969.25

267.48
23.63
-

153.18
22.61
47.90

243.55
8.15

133.94
3.35

3.70
-

5.22
0.26

2.41
5.68

9.43
7.71

Income from Other Operations & Other Income

Employees Cost

Other Expenses
Minority Interest (grossed up for tax)
Total Expenses
Profit Before Tax
Exceptional/ non operational / non recurring Items
Income
Dividend & Other Income
Profit on sale of FA
Insurance Claims for loss of Profit due to fire
Expenses
Loss on assets sold
VRS Cost

Tata Motors Limited

Market Price Data
Six Months Average Market Price
Particulars

January 2008
February 2008
March 2008
April 2008
May 2008
June 2008
Total
Average

Volume(No.of shares ) Value (In Rs.)

6,534,123
3,043,441
5,516,242
2,869,661
3,191,905
3,129,367

4,887,862,720
2,211,598,562
3,604,182,166
1,816,746,288
2,053,548,472
1,604,774,000

24,284,739

16,178,712,208
666.21

Mahindra & Mahindra Limited

Balance Sheet Data
Particulars

2007-08

2006-07

Fixed Assets
Capital WIP
Total Assets

6471.34
1154.17
7,625.51

4,227.44
559.30
4,786.75

Investments

1354.72

1,003.30

17.57

14.71

16,928.53
6,682.26
10,246.27

14,039.60
5,199.24
8,840.36

14.18

19.00

Deferred Tax Assets

Current Assets Loans & Advances
Less:Current Liabilities & Provisions
Net Current Assets
Misc. Expenditure not written off
Total Assets

19,258.25

Share Capital

14,664.12

239.07

238.03

Reserves & Surplus

5,921.70

4,613.54

Minority Interest

2,734.52

1,659.48

Loan Funds & Other Liabilities

10362.96

8,153.06

Deferred tax Liability

Total Liabilities

19,258.25

Other Data
1. Details of Investments

14,664.12
-

2007-08
Particulars

Cost
Market Value / Fair Value
Appreciation in value of investments
Tax rate
Net of tax appreciation

2. Contingent Liability
As per Annual Report 2007-08
Contingent Liability
Excise / Sales tax/ service tax
Income Tax
Other Matters

Quoted
84.8
206.64
121.84
121.84

Amount
206.41
289.72
147.54

Unquoted
1,270.95
3,000.00
1,729.05
22.66%
1,337.25

Probability
30%
50%
20%

Mahindra & Mahindra Limited

P & L Data
Particulars

2007-08

2006-07

Net Sales

17619.55

12,914.99

Income from Other Operations & Other Income

6,825.74

4,997.29

Total Income
Cost of Goods Sold

24,445.29

17,912.28

11,629.15

8,985.23

3,613.73

2,388.40

Interest & Finance Charges

589.52

299.20

Depreciation / amortisation

582.24

379.86

5,373.63

3,657.18

Employees Cost

Other Expenses
Minority Interest (grossed up for tax)
Total Expenses
Profit Before Tax

Exceptional/ non operational / non recurring Items

Income
Profit on sale of investments
Profit on prepayment of ST loan
Dividend Income
Profit on sale of FA
Profit on Discontinuation of Operation in subsidiary
Profit on dilution of Group's interest in Forging Business
Interest earned
Others
Expenses
VRS write off
Premium on pref shares
Provision for diminution in value of assets
Others
Loss on Sale of Fixed Assets
Amortisation of Expenses

414.26

188.94

22,202.53

15,898.82

2,242.76

2,013.46

296.37

408.15

50.73
19.83
31.00
125.54
-

51.30
20.02

8.23
1.53
0.78

8.08

0.36

3.72
1.44

(Rs. in Crores)
2004-05

2005-06
2,294.82
310.72
2,605.54

1,895.58
126.66
2,022.24

1,180.33

595.31

9,731.98
3,359.05
6,372.92

6,701.36
2,513.66
4,187.70

24.44

33.31

10,183.23

6,838.57

233.40

111.65

3,486.09

2,271.22

852.51

363.42

5,495.58

3,956.94

115.66

135.34

10,183.23

6,838.57

1,459.09

Tax Rate
33.99%
0
33.99%

Net of Tax CL
40.88
144.86
19.48
205.21

2005-06

2004-05

9,807.34

7,636.66

2,841.07

1,928.86

12,648.41

9,565.52

6,912.16

5,425.40

1,399.38

1,047.08

219.37

136.06

283.31

239.10

2,031.68

1,723.69

195.39

12.54

11,041.29

8,583.86

1,607.12

981.65

381.40

65.61
21.25
9.16
0.82

26.52
4.04 -

8.34
4.05

7.26
8.26

M&M
Calculation of Adjusted PBT
Particulars
Profit Before Tax

(Rs. in Crores)
2006-07

2007-08

2005-06

2,242.76

2,013.46

1,607.12

296.37

408.15

381.40

50.73
19.83
31.00
125.54
-

51.30
20.02

26.52
4.04

523.47

479.83

411.95

8.23
1.53
0.78

8.08

8.34
4.05

10.54

13.24

12.39

1,729.83

1,546.86

1,207.55

Less:Non recurring Income

Income
Profit on sale of investments
Profit on prepayment of ST loan
Dividend Income
Profit on sale of FA
Profit on Discontinuation of Operation in subsidiary
Profit on dilution of Group's interest in Forging Business
Interest earned
Others
Total of Non Recurring Income
Add:Non recurring Expenditure
VRS write off
Premium on pref shares
Provision for diminution in value of assets
Others
Loss on Sale of Fixed Assets
Amortisation of Expenses
Total of Non Recurring Expenditure
Adjusted PBT M&M

0.36

3.72
1.44

Tata Motors
Calculation of Adjusted PBT
Particulars
Profit Before Tax

(Rs. in Crores)
2006-07

2007-08

2005-06

2,984.71

2,971.16

2,558.93

267.48
23.63
-

153.18
22.61
47.90

243.55
8.15

291.11

223.69

251.70

Add:Non recurring Expenditure

Loss on assets sold
VRS Cost

3.70
-

5.22
0.26

2.41
5.68

Total of Non Recurring Expenditure

3.70

5.48

8.09

Less:Non recurring Income

Dividend & Other Income
Profit on sale of FA
Insurance Claims for loss of Profit due to fire
Total of Non Recurring Income

Adjusted PBT TATA MOTORS

2,697.30

2,752.95

2,315.32

2004-05
981.65

65.61
21.25
9.16
0.82

95.21

7.26
8.26

15.52
901.97

2004-05
1,969.25

133.94
3.35

137.29

9.43
7.71
17.14

1,849.10

M & M - Tata Motors

Valuation as on March 31, 2008
Earnings Capitalisation Method
Particulars

2007-08
2006-07
2005-06
Total

Amount in Crores
M&M
Adj. PBT
Weight
1,729.83
1,546.86
1,207.55

Product

3
2
1
6

5,189.50
3,093.73
1,207.55
9,490.78

Maintainable PBT
Tax Rate

1,581.80
33.99%

537.65

Maintainable PAT

1,044.14

Capitalisation Rate- inverse of P/E multiple

6.00%

Capitalised Value-Only operational Investments

17,402.41

Adjustments
Value of Investments-Entire investments
Contingent Liabilities
Deffred tax Liabilities

2,813.81
205.21
17.57

PECV Value

20,028.57

Equity Capital

239.07

PECV Value per Share

837.77

Adj. PBT
2,697.30
2,752.95
2,315.32

Tata Motors
Weight
3
2
1
6

Tata Motors
Product
8,091.91
5,505.90
2,315.32
15,913.13
2,652.19
901.48
1,750.71
5.00%
35,014.19

7,203.89 provision and

297.22
(974.45)
40,946.41
385.54
1,062.05

M &M - Tata Motors

Valuation as on March 31, 2008
Net Assets Method
Particulars

Amount in Crores
M&M

Tata Motors

Net Fixed Assets

7,625.51

13,429.60

Investments

1,354.72

2,665.83

Current Assets Loans & Advances

Current Liabilities & Provisioins
Net Current Assets

16,928.53
6,682.26

Total Assets
Deferred Tax Liability
Loan Funds
Minority Interest
Net Assets

(17.57)
10,362.96
2,734.52

19,267.35
13,644.56
10,246.27

5,622.79

19,226.50

21,718.22

13,079.91

974.45
11,584.87
468.31

TDS pre paid tax

13,027.63

6,146.59

8,690.59

1,459.09

4,538.06

(205.21)

(297.22)

Adjustments
Appreciation in value of Investments
Contingent Liabilities

Adjusted Net Assets

7,400.46

12,931.43

Equity Capital

239.07

385.54

Net Assets Value per Share

309.55

335.41

TDS pre paid tax

M&M - Tata Motors

Valuation as on March 31, 2008
Calculation of Fair Value per share
Method
Value per Share
Net Assets Method
PECV Method
Market Price Method
Total
Fair Value per share
Ratio

309.55
837.77
660.13
661.07

M&M
Weight

Product

1
2
2
5

661.07
0.871676995

Post Merger Value of the combined

company
Value Combined

Value of TML+ Value of M&M+ Synergy-Cash Paid

Value of TML (Rs Cr)

36,403
Value of M&M ( Rs Cr)
18,509.92
Synergy ( Rs Cr)
120.00
Cash Paid
925.50
Additional cash premuim
20 xtra cash paid
Value Combined ( Rs Cr)
54,087.01
\
Important Formulas
Gain to the Acquirer
Synergy- Takeover Premium
Gain to the Target
Takeover Premium
Takeover Premium
(Valuation of Target after acquisition- Value of Target Prior to acquisitions)
Price of M&M (Target) post merger
Price of the combined company post merger
Price of the Combined company post mergerValue of the combined company/Total No of shares post merger

Price per share of combined company

759.79

Takeover Premium

52.57

Gain to the Acquirer

Gain to the Target

67.43
52.57

pre merger

Pre merger

Shareholders
Numbers
M&M
A
B
C
D

post merger for mahindra

179,200,000
16,800,000
28,000,000
56,000,000

% Value - Rs Cr
64%
6%
10%
20%

156,204,517.42

Total (M&M)
TATA
X
Y
Total (TATA)
Grand Total
Merger ratio
Value of M&M
Value of TATA- Rs Cr: Rs/Share

Post Merger shareholding in Tata Motors

Shareholders
A
B
C
D
X
Y
Total

280,000,000

100%

445,694,123
34,305,877
480,000,000

92.85%
7%
1

Numbers
148,394,292
13,911,965
23,186,608
46,373,216

% Value - Rs Cr
21%
2%
3%
7%

Tata Motors
Value per Share

Weight
335.41
1,062.05
666.21

Product

1
2
2
5

758.39

Prior to acquisitions)

17617.00
18509.92341

Shareholders
Numbers
NEW TATA SHARES ISSUED
A
B
C
D

148,394,292
13,911,965
23,186,608
46,373,216

Post merger
% Value - Rs Cr
21%
2%
3%
7%

Total (M&M)
TATA
X
Y
Total (TATA)
Grand Total
Merger ratio
Value of M&M
Value of TATA- Rs Cr: Rs/Share
Stock ratio
Learnings and checks

231,866,081

33%

445,694,123
34,305,877
480,000,000
711,866,081

63%
5%
1
1

95%

1
2
fair value shares outstanding
Company 1 100.00
40,000,000.00
cmpany 2
200.00
10,000,000.00
ratio
2

synergy
additional cash paid
stock payout
cashpayout
cash paid
total value

total value of combined 600

share price
Company A
Company B
total share
total no of shares in cr
takeover premium

40,000,000.00
19,000,000.00
59,000,000.00
5.90
19.49

gain to acquirer
gain to

30.51

Post
pre

400
200
50
5
95%
5%
10
635

additional cash paid

stock payout
cashpayout

share price

107.627119

204.49
200.00