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2 |Page
 INDEX

1. Executive Summary 3
1.1. Market Share of Automobile 3
1.2. Security Market Line 3
1.3. Capital Structure of three companies 4
2. Methodology 5
3. Tata Motors 5
3.1. Tata Motor Stock Price Chart
6
3.2. Characteristic line of Tata Motors
6
3.3. Analysis of Stock price
7
3.4. Net Present Value
7
4. Maruti Suzuki
8
4.1. Maruti Suzuki Stock Price Chart
8
4.2. Characteristic line of Maruti Suzuki
9
4.3. Analysis of Stock price
9
4.4. Net Present Value
10
5. Hindustan Motors
11
5.1. Hindustan Motor Stock Price Chart
11
5.2. Characteristic line of Hindustan Motor
12
5.3. Analysis of Stock price
12

3 |Page
 5.4. Net Present Value
13
6. Observation
14
7. Inference
14

Appendix A (Tata Motors)

16

Appendix B (Maruti Suzuki)

19

Appendix C (Hindustan Motors)

22

4 |Page
1. Executive Summary

This study analyses the risk and return pattern in the Indian auto industry. For this
purpose, 3 BSE listed companies were chosen, namely, Tata Motors, Maruti Suzuki and
Hindustan Motor.

Market Share of Auto industry has been shown below. Maruti Suzuki is market leader
and Hindustan Motor is the smallest player as per market share.

1.1 Market Share of Automobile

1.2 Security Market Line

Risk free
rate 5.25%
Market
rate 9%

5 |Page
1.3 Capital Structure of three companies
Equity Cost of Cost of
Company Debt weight weight debt(ki) equity(ke) WACC
Maruti 0.07 0.93 2.51 15.90 14.91
Tata 0.53 0.47 3.99 24.28 13.60
Hindustan 0.74 0.26 7.7 0 5.69

Further analysis about companies is done in later sections.

6 |Page
2. Methodology

Risk Return Analysis of BSE 100 Companies have been done over a 6 year period
from January 2005 to October 2010. Monthly Adjusted Data has been taken as from
Prowess by CMIE.

For Risk free rate average 91 day Tbill rates have been taken from RBI website.

For calculating Cost of Equity CAPM Model has been used.

The analysis has been done on basis of Beta, Alpha, Total Risk ( Unsystematic and
Market Risk), Cost of Equity, Debt and Weighted Average cost of capital based on
debt equity ratio

3. Tata Motors

Tata Motors Ltd is a multinational corporation headquartered in Mumbai, India. Part of

theTata Group, it was formerly known as TELCO (TATA Engineering and Locomotive
Company).

Tata Motors is India’s largest automobile company, with consolidated revenues of USD
20 billion in 2009-10. It is the leader in commercial vehicles and among the top three in
passenger vehicles. Tata Motors has products in the compact, midsize car and utility
vehicle segments. The company is the world's fourth largest truck manufacturer, the
world's second largest bus manufacturer, and employs 24,000 workers. Since first rolled
out in 1954, Tata Motors has produced and sold over 4 million vehicles in India.

Established in 1945, when the company began manufacturing locomotives, the

company manufactured its first commercial vehicle in 1954 in collaboration
with Daimler-Benz AG, which ended in 1969.Tata Motors is a dual-listed
company traded on both the Bombay Stock Exchange, as well as on the New York
Stock Exchange. Tata Motors in 2005, was ranked among the top 10 corporations in
India with an annual revenue exceeding INR320 billion. In 2010, Tata Motors surpassed
Reliance to win the coveted title of 'India's most valuable brand' in a annual survey
conducted by Brand Finance and The Economic Times.

7 |Page
3.1 Tata Motor Stock Price Chart

3.2 Characteristic line of Tata Motor

8 |Page
3.3 Analysis of Stock Price

Varianc Maximu Minimu Rang

Year Mean S. D. e m m e C.V.

11.43 241.1
2005 485.30 % 4862.33 653.00 411.90 0 0.14

241.2
2006 831.29 9.89% 5226.71 950.50 709.30 0 0.09

208.0
2007 748.30 6.39% 2773.62 877.75 669.75 0 0.07

18.09 44881.7 569.8

2008 445.87 % 0 706.15 136.35 0 0.48

18.55 46227.8 643.1

2009 405.86 % 2 792.60 149.45 5 0.53

10.51 27950.7 474.9

2010 868.71 % 2 1169.25 694.35 0 0.19

Correlatio
n Covariance Beta

491651.1
0.53 8 1.40

Cost of equity = 24.28%

Cost of debt = 3.99%

WACC = 13.60%

3.3 Net Present Value

Net Cash
flow(PAT+Depreciatio
Year n) NPV
2049.82 2647.44
2006
2007 2499.75 3067.50

9 |Page
 2681.23 3126.08
2008
1891.09 2094.87
2009
3273.95 3445.83
2010
14381.73

10 | P a g e
4. Maruti Suzuki

Maruti Suzuki India Limited a partial subsidiary of Suzuki Motor Corporation of Japan, is
India's largest passenger car company, accounting for over 45% of the domestic car
market. The company offers a complete range of cars from entry level Maruti 800 and
Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4
and Sports Utility vehicle Grand Vitara.

It was the first company in India to mass-produce and sell more than a million cars. It is
largely credited for having brought in an automobile revolution to India. It is the market
leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti
Suzuki India Limited. The company's headquarters are located in Delhi.

More than half the cars sold in India are Maruti Suzuki cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti
Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay
Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out
on 14 December 1983.

4.1 Maruti Suzuki Stock Price Chart

4.2 Characteristic line of Maruti Suzuki

4.3 Analysis of Stock Price

Coefficient of
Year Mean S. D. Variance Min Max Range variation
8.67%
2005 499.51 5348.72 406.35 636.50 230.15 0.15
10.19%
2006 863.36 6945.97 734.85 981.20 246.35 0.10

11 | P a g e
 8.02%
2007 895.56 10634.57 743.10 1073.55 330.45 0.12
9.77%
2008 683.54 15657.98 520.10 867.20 347.10 0.18
13.10%
2009 1166.63 153192.55 571.00 1698.90 1127.90 0.34
10.49%
2010 1359.56 11223.12 1198.15 1490.45 292.30 0.08

Correlation Covariance Beta

0.78 1017960.29 .82

Cost of equity = 15.90%

Cost of debt = 2.51%

WACC = 14.91%

4.4 Net Present Value

Net Cash
flow(PAT+Depreciation
Year ) NPV
1474.5 1904.39
2006
1833.4 2249.81
2007
2299 2680.44
2008
1925.2 2132.65
2009
3322.6 3497.04
2010
12464.32

12 | P a g e
5. Hindustan Motors Ltd.

Hindustan Motors is an automobile manufacturer from India. It is part of the Birla

Technical Services industrial group. The company was the largest car manufacturer in
India before the rise of Maruti Udyog.

It is the producer of the Ambassador car, widely used as a taxicab and as a government
limousine. This car is based on the Morris Oxford, a British car that dates back to 1954.

One of the original three car manufacturers in India, founded in 1942 by Mr. B.M. Birla,
it was a leader in car sales until the 1980s, when the industry was opened up from
protection. Manoj Jha is the Managing Director. It began in Port Okha near Gujarat, and
in 1948, moved to West Bengal. The Place is now Called Hindmotor.

Hindustan and General Motors have had several tie-ups in the post independence era
to produce Bedford Trucks, Vauxhall Motors(1980 to 1990), Allison Transmissions and
off-road equipment. In 1994, GM and Hindustan (C K Birla) formed a 50-50 joint
venture, General Motors India to make Opel Astra cars. GM bought out the Halol,
Gujarat plant from Hindustan in 1999.

5.1 Hindustan Motors Stock Price Chart

5.2 Characteristic line of Hindustan Motors

5.3 Analysis of Stock Price

Year Mean S. D. Variance Max Min Range C. V.
18.70%
2005 32.58 30.77 45.05 23.55 21.50 0.17
18.36%
2006 37.75 39.91 55.05 30.50 24.55 0.17
18.17%
2007 37.01 72.23 61.05 30.90 30.15 0.23
19.06%
2008 25.80 136.57 47.60 10.29 37.31 0.45
17.09%
2009 22.86 22.54 24.10 11.26 12.84 0.21

13 | P a g e
 12.88%
2010 22.96 3.78 25.30 19.55 5.75 0.08

Correlation Covariance Beta

0.06 2484.31 1.41

Cost of equity = 0.0%

Cost of debt = 7.70%

WACC = 5.69%

5.4 Net Present Value

Net Cash
flow(PAT+Depreciation
Year ) NPV
-
122.167517
-94.59 2
2006
-
87.1503400
-71.02 5
2007
-
68.0660273
-58.38 9
2008
-
47.6113636
-42.98 3
2009
-38.85 -40.889625
2010
-
365.884873
3

14 | P a g e
6. Observation

Maruti Hindustan Industry

Tata Motors Suzuki Motor Average
Mean(in Rs.) 868.71 1359.56 22.96
Standard
deviation 10.51% 10.49% 12.80%
Variance 27950.78 11223.23 3.78
Range 474.9 292.3 5.75
Coefficient of
variation 0.19 0.08 0.08
0.0097 0.0057 0.0098
Covariance
Beta 1.4 0.82 1.41 1.72
Cost of debt 3.99% 2.51% 7.7% 6.80%
Cost of equity 15.90% 24.28% 0% 11.34%
WACC 13.6% 14.91% 5.69% 8.58%
NPV(in crores) 14381.73 12464.32 -365.88

7. Inference

From the observation table we see that the cost of debt of Hindustan Motors is 0%. This
is because Hindustan Motors doesn’t give any dividend. Also the cost of debt of
Hindustan Motors is higher compared to that of the other two companies as well as that
of the market. This means that Hindustan Motors finds it difficult to raise money from the
market because investors are not ready to invest on it as they do not expect good
returns.

Beta analysis
An asset with a Beta of zero means that its returns change independently of changes in
the market's returns. A positive beta means that the asset's returns generally follow the
market's returns, in the sense that they both tend to be above their respective averages
together, or both tend to be below their respective averages together. A negative beta
means that the asset's returns generally move opposite the market's returns: one will
tend to be above its average when the other is below its average.

15 | P a g e
Beta of Tata motor and Hindustan motors is more than one meaning that their stock
prices respond more to the market prices than Maruti Suzuki. Thus, non-diversifiable
risk of Tata motors and Hindustan motors is more than Maruti Suzuki

Cost of equity analysis

The cost of equity capital for a particular company is the rate of return on investment
that is required by the company's ordinary shareholders. The return consists both of
dividend and capital gains, e.g. increases in the share price. The returns are expected
future returns, not historical returns, and so the returns on equity can be expressed as
the anticipated dividends on the shares every year in perpetuity. The cost of equity is
then the cost of capital which will equate the current market price of the share with the
discounted value of all future dividends in perpetuity.

From investor’s point of view, Maruti Suzuki is the best investment as it gives highest
returns and Hindustan Motors is the least preferable investment.

Cost of debt analysis

The cost of debt is computed by taking the rate on a risk free bond whose duration
matches the term structure of the corporate debt, then adding a default premium. This
default premium will rise as the amount of debt increases (since, ceteris paribus,"all
other things being equal", the risk rises as the amount of debt rises).

Cost of debt should be as low as possible from company’s perspective. So, Maruti
Suzuki is the best possible option and Hindustan Motors is the least preferred one.

16 | P a g e
Appendix-A (Tata Motors)
1. Stock Prices

Closing Price Index Closing

Change in Change in
Year Tata Motors Ltd. B S E Sensex Tata BSE

Jan-05 504.75 6555.94

Feb-05 475.15 6713.86 -5.86% 2.41%

Mar-05 413.95 6492.82 -12.88% -3.29%

Apr-05 411.9 6154.44 -0.50% -5.21%

May-05 432.95 6715.11 5.11% 9.11%

Jun-05 425.05 7193.85 -1.82% 7.13%

Jul-05 480.95 7635.42 13.15% 6.14%

Aug-05 462.85 7805.43 -3.76% 2.23%

Sep-05 534.45 8634.48 15.47% 10.62%

Oct-05 473 7892.32 -11.50% -8.60%

Nov-05 555.6 8788.81 17.46% 11.36%

Dec-05 653 9397.93 17.53% 6.93%

Jan-06 709.3 9919.89 8.62% 5.55%

Feb-06 814.35 10370.24 14.81% 4.54%

Mar-06 932.6 11279.96 14.52% 8.77%

Apr-06 950.5 12042.56 1.92% 6.76%

May-06 789.7 10398.61 -16.92% -13.65%

Jun-06 794.45 10609.25 0.60% 2.03%

Jul-06 739.75 10743.88 -6.89% 1.27%

Aug-06 845.15 11699.05 14.25% 8.89%

Sep-06 862.05 12454.42 2.00% 6.46%

17 | P a g e
 Oct-06 827.95 12961.9 -3.96% 4.07%

Nov-06 809.4 13696.31 -2.24% 5.67%

Dec-06 900.25 13786.91 11.22% 0.66%

Jan-07 877.75 14090.92 -2.50% 2.21%

Feb-07 783.95 12938.09 -10.69% -8.18%

Mar-07 727.75 13072.1 -7.17% 1.04%

Apr-07 750.45 13872.37 3.12% 6.12%

May-07 757.5 14544.46 0.94% 4.84%

Jun-07 669.75 14650.51 -11.58% 0.73%

Jul-07 699.3 15550.99 4.41% 6.15%

Aug-07 701.85 15318.6 0.36% -1.49%

Sep-07 778.15 17291.1 10.87% 12.88%

Oct-07 757.7 19837.99 -2.63% 14.73%

Nov-07 733.35 19363.19 -3.21% -2.39%

Dec-07 742.1 20286.99 1.19% 4.77%

Jan-08 706.15 17648.71 -4.84% -13.00%

Feb-08 700.25 17578.72 -0.84% -0.40%

Mar-08 623.45 15644.44 -10.97% -11.00%

Apr-08 662.2 17287.31 6.22% 10.50%

May-08 576.9 16415.57 -12.88% -5.04%

Jun-08 426.5 13461.6 -26.07% -17.99%

Jul-08 403.25 14355.75 -5.45% 6.64%

Aug-08 440.35 14564.53 9.20% 1.45%

Sep-08 344.2 12860.43 -21.83% -11.70%

Oct-08 171.8 9788.06 -50.09% -23.89%

Nov-08 136.35 9092.72 -20.63% -7.10%

Dec-08 159.05 9647.31 16.65% 6.10%

18 | P a g e
 Jan-09 149.65 9424.24 -5.91% -2.31%

Feb-09 149.45 8891.61 -0.13% -5.65%

Mar-09 180.3 9708.5 20.64% 9.19%

Apr-09 242.35 11403.25 34.41% 17.46%

May-09 336.7 14625.25 38.93% 28.26%

Jun-09 291.15 14493.84 -13.53% -0.90%

Jul-09 421.55 15670.31 44.79% 8.12%

Aug-09 489.35 15666.64 16.08% -0.02%

Sep-09 591.35 17126.84 20.84% 9.32%

Oct-09 565 15896.28 -4.46% -7.18%

Nov-09 660.9 16926.22 16.97% 6.48%

Dec-09 792.6 17464.81 19.93% 3.18%

Jan-10 694.35 16357.96 -12.40% -6.34%

Feb-10 711.05 16429.55 2.41% 0.44%

Mar-10 755.7 17527.77 6.28% 6.68%

Apr-10 872.85 17558.71 15.50% 0.18%

May-10 754.65 16944.63 -13.54% -3.50%

Jun-10 778.35 17700.9 3.14% 4.46%

Jul-10 846.15 17868.29 8.71% 0.95%

Aug-10 1007.45 17971.12 19.06% 0.58%

Sep-10 1097.3 20069.12 8.92% 11.67%

Oct-10 1169.25 20168.89 6.56% 0.50%

2. Balance sheet
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds
Owner's fund

Equity share capital 570.6 514.05 385.54 385.41 382.87

19 | P a g e
Share application money - - - - -

Preference share capital - - - - -

14,208.5
Reserves & surplus 5 11,855.15 7,428.45 6,458.39 5,127.81

Loan funds
Secured loans 7,742.60 5,251.65 2,461.99 2,022.04 822.76

Unsecured loans 8,883.31 7,913.91 3,818.53 1,987.10 2,114.08

31,405.0 10,852.9
Total 6 25,534.76 14,094.51 4 8,447.52

Uses of funds
Fixed assets

18,416.8
Gross block 1 13,905.17 10,830.83 8,775.80 7,971.55

Less : revaluation reserve 24.63 25.07 25.51 25.95 26.39

Less : accumulated depreciation 7,212.92 6,259.90 5,443.52 4,894.54 4,401.51

11,179.2
Net block 6 7,620.20 5,361.80 3,855.31 3,543.65

Capital work-in-progress 5,232.15 6,954.04 5,064.96 2,513.32 951.19

22,336.9
Investments 0 12,968.13 4,910.27 2,477.00 2,015.15

Net current assets

12,329.4 10,318.4
Current assets, loans & advances 8 10,836.58 10,781.23 2 9,812.06

19,672.7
Less : current liabilities & provisions 3 12,846.21 12,029.80 8,321.20 7,888.65

Total net current assets -7,343.25 -2,009.63 -1,248.57 1,997.22 1,923.41

Miscellaneous expenses not written - 2.02 6.05 10.09 14.12

31,405.0 10,852.9
Total 6 25,534.76 14,094.51 4 8,447.52

Notes:
21,991.9
Book value of unquoted investments 3 12,358.84 4,145.82 2,117.86 1,648.57

Market value of quoted investments 345.53 558.32 2,530.55 1,323.08 1,550.00

20 | P a g e
Contingent liabilities 3,708.33 5,433.07 5,590.83 5,196.07 2,185.63

Number of equity sharesoutstanding (Lacs) 5705.58 5140.08 3855.04 3853.74 3828.34

Appendix-B (Maruti Suzuki)

1. Stock Prices
Closing Price Index Closing
Maruti Suzuki Change in Change in
Year India Ltd. B S E Sensex Maruti BSE
Jan-05 451.95 6555.94
Feb-05 473.15 6713.86 4.69% 2.41%
Mar-05 420.8 6492.82 -11.06% -3.29%
Apr-05 406.35 6154.44 -3.43% -5.21%
May-05 466.25 6715.11 14.74% 9.11%
Jun-05 465.1 7193.85 -0.25% 7.13%
Jul-05 482.1 7635.42 3.66% 6.14%
Aug-05 471 7805.43 -2.30% 2.23%
Sep-05 558.3 8634.48 18.54% 10.62%
Oct-05 549.7 7892.32 -1.54% -8.60%
Nov-05 612.9 8788.81 11.50% 11.36%
Dec-05 636.5 9397.93 3.85% 6.93%
Jan-06 756.85 9919.89 18.91% 5.55%
Feb-06 822.6 10370.24 8.69% 4.54%
Mar-06 874.35 11279.96 6.29% 8.77%
Apr-06 924.1 12042.56 5.69% 6.76%
May-06 734.85 10398.61 -20.48% -13.65%
Jun-06 797.6 10609.25 8.54% 2.03%
Jul-06 786.5 10743.88 -1.39% 1.27%
Aug-06 861.4 11699.05 9.52% 8.89%
Sep-06 981.2 12454.42 13.91% 6.46%
Oct-06 968.55 12961.9 -1.29% 4.07%
Nov-06 924.95 13696.31 -4.50% 5.67%
Dec-06 927.35 13786.91 0.26% 0.66%
Jan-07 936.6 14090.92 1.00% 2.21%
Feb-07 839.7 12938.09 -10.35% -8.18%
Mar-07 819.7 13072.1 -2.38% 1.04%
Apr-07 803.1 13872.37 -2.03% 6.12%
May-07 817.65 14544.46 1.81% 4.84%
Jun-07 743.1 14650.51 -9.12% 0.73%
Jul-07 843.15 15550.99 13.46% 6.15%

21 | P a g e
 Aug-07 868.2 15318.6 2.97% -1.49%
Sep-07 999.55 17291.1 15.13% 12.88%
Oct-07 1073.55 19837.99 7.40% 14.73%
Nov-07 1012.35 19363.19 -5.70% -2.39%
Dec-07 990.05 20286.99 -2.20% 4.77%
Jan-08 848.7 17648.71 -14.28% -13.00%
Feb-08 867.2 17578.72 2.18% -0.40%
Mar-08 829.55 15644.44 -4.34% -11.00%
Apr-08 741.9 17287.31 -10.57% 10.50%
May-08 764.5 16415.57 3.05% -5.04%
Jun-08 617.75 13461.6 -19.20% -17.99%
Jul-08 574.9 14355.75 -6.94% 6.64%
Aug-08 650.4 14564.53 13.13% 1.45%
Sep-08 687.15 12860.43 5.65% -11.70%
Oct-08 564.45 9788.06 -17.86% -23.89%
Nov-08 535.85 9092.72 -5.07% -7.10%
Dec-08 520.1 9647.31 -2.94% 6.10%
Jan-09 571 9424.24 9.79% -2.31%
Feb-09 677.6 8891.61 18.67% -5.65%
Mar-09 775.1 9708.5 14.39% 9.19%
Apr-09 815.7 11403.25 5.24% 17.46%
May-09 1021.55 14625.25 25.24% 28.26%
Jun-09 1065.45 14493.84 4.30% -0.90%
Jul-09 1413.25 15670.31 32.64% 8.12%
Aug-09 1436.65 15666.64 1.66% -0.02%
Sep-09 1698.9 17126.84 18.25% 9.32%
Oct-09 1403 15896.28 -17.42% -7.18%
Nov-09 1561.7 16926.22 11.31% 6.48%
Dec-09 1559.65 17464.81 -0.13% 3.18%
Jan-10 1390.1 16357.96 -10.87% -6.34%
Feb-10 1463.55 16429.55 5.28% 0.44%
Mar-10 1416.15 17527.77 -3.24% 6.68%
Apr-10 1279.75 17558.71 -9.63% 0.18%
May-10 1236.95 16944.63 -3.34% -3.50%
Jun-10 1423.6 17700.9 15.09% 4.46%
Jul-10 1198.15 17868.29 -15.84% 0.95%
Aug-10 1255.9 17971.12 4.82% 0.58%
Sep-10 1440.95 20069.12 14.73% 11.67%
Oct-10 1490.45 20168.89 3.44% 0.50%

22 | P a g e
2. Balance sheet
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund
Equity share capital 144.5 144.5 144.5 144.5 144.5
Share application money - - - - -
Preference share capital - - - - -
11,690.6
Reserves & surplus 0 9,200.40 8,270.90 6,709.40 5,308.10
Loan funds
Secured loans 26.5 0.1 0.1 63.5 71.7
Unsecured loans 794.9 698.8 900.1 567.3 -
12,656.5 10,043.8
Total 0 0 9,315.60 7,484.70 5,524.30
Uses of funds
Fixed assets
10,406.7
Gross block 0 8,720.60 7,285.30 6,146.80 4,954.60
Less : revaluation reserve - - - - -
Less : accumulated
depreciation 5,382.00 4,649.80 3,988.80 3,487.10 3,259.40
Net block 5,024.70 4,070.80 3,296.50 2,659.70 1,695.20
Capital work-in-progress 387.6 861.3 736.3 238.9 92
Investments 7,176.60 3,173.30 5,180.70 3,409.20 2,051.20
Net current assets
Current assets, loans &
advances 3,856.00 5,570.00 3,190.50 3,956.00 3,870.70
Less : current liabilities &
provisions 3,788.40 3,631.60 3,088.40 2,779.10 2,184.80
Total net current assets 67.6 1,938.40 102.1 1,176.90 1,685.90
Miscellaneous expenses not
written - - - - -
12,656.5 10,043.8
Total 0 0 9,315.60 7,484.70 5,524.30
Notes:
Book value of unquoted
investments 11.1 3,162.20 5,169.60 3,398.10 2,040.10
Market value of quoted
investments 215.1 108.7 219.5 270.4 289.8
Contingent liabilities 3,657.20 1,901.70 2,734.20 2,094.60 1,289.70
Number of equity
sharesoutstanding (Lacs) 2889.1 2889.1 2889.1 2889.1 2889.1

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Appendix-C (Hindustan Motors)

1. Stock Prices
Adjusted
Closing Price Index Closing
Hindustan BSE Change in Change in
Year Motors Ltd. Sensex Hindustan BSE
Jan-05 23.55 6555.94
Feb-05 31.55 6713.86 33.97% 2.41%
Mar-05 32.95 6492.82 4.44% -3.29%
Apr-05 27.9 6154.44 -15.33% -5.21%
May-
05 31.35 6715.11 12.37% 9.11%
Jun-05 32.1 7193.85 2.39% 7.13%
Jul-05 35.95 7635.42 11.99% 6.14%
Aug-05 45.05 7805.43 25.31% 2.23%
Sep-05 38.95 8634.48 -13.54% 10.62%
Oct-05 28.25 7892.32 -27.47% -8.60%
Nov-05 33.1 8788.81 17.17% 11.36%
Dec-05 30.2 9397.93 -8.76% 6.93%
Jan-06 33 9919.89 9.27% 5.55%
Feb-06 35.6 10370.24 7.88% 4.54%
Mar-06 39.9 11279.96 12.08% 8.77%
Apr-06 55.05 12042.56 37.97% 6.76%
May-
06 37.05 10398.61 -32.70% -13.65%
Jun-06 30.5 10609.25 -17.68% 2.03%
Jul-06 32.4 10743.88 6.23% 1.27%
Aug-06 38.9 11699.05 20.06% 8.89%
Sep-06 41 12454.42 5.40% 6.46%
Oct-06 37.4 12961.9 -8.78% 4.07%
Nov-06 38.15 13696.31 2.01% 5.67%
Dec-06 34 13786.91 -10.88% 0.66%
Jan-07 40.75 14090.92 19.85% 2.21%
Feb-07 40.6 12938.09 -0.37% -8.18%
Mar-07 33.9 13072.1 -16.50% 1.04%
Apr-07 32.35 13872.37 -4.57% 6.12%
May-
07 32.85 14544.46 1.55% 4.84%
Jun-07 31.35 14650.51 -4.57% 0.73%
Jul-07 30.9 15550.99 -1.44% 6.15%
Aug-07 31.2 15318.6 0.97% -1.49%

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 Sep-07 35.75 17291.1 14.58% 12.88%
Oct-07 32.45 19837.99 -9.23% 14.73%
Nov-07 40.95 19363.19 26.19% -2.39%
Dec-07 61.05 20286.99 49.08% 4.77%
Jan-08 47.6 17648.71 -22.03% -13.00%
Feb-08 39.15 17578.72 -17.75% -0.40%
Mar-08 32.2 15644.44 -17.75% -11.00%
Apr-08 35.55 17287.31 10.40% 10.50%
May-
08 30.05 16415.57 -15.47% -5.04%
Jun-08 23.05 13461.6 -23.29% -17.99%
Jul-08 24.9 14355.75 8.03% 6.64%
Aug-08 24.45 14564.53 -1.81% 1.45%
Sep-08 18.65 12860.43 -23.72% -11.70%
Oct-08 10.6 9788.06 -43.16% -23.89%
Nov-08 10.29 9092.72 -2.92% -7.10%
Dec-08 13.08 9647.31 27.11% 6.10%
Jan-09 12.37 9424.24 -5.43% -2.31%
Feb-09 11.26 8891.61 -8.97% -5.65%
Mar-09 13.17 9708.5 16.96% 9.19%
Apr-09 16.23 11403.25 23.23% 17.46%
May-
09 23.15 14625.25 42.64% 28.26%
Jun-09 19.7 14493.84 -14.90% -0.90%
Jul-09 20.95 15670.31 6.35% 8.12%
Aug-09 22.85 15666.64 9.07% -0.02%
Sep-09 24.1 17126.84 5.47% 9.32%
Oct-09 20 15896.28 -17.01% -7.18%
Nov-09 23.25 16926.22 16.25% 6.48%
Dec-09 23.65 17464.81 1.72% 3.18%
Jan-10 22.1 16357.96 -6.55% -6.34%
Feb-10 20.8 16429.55 -5.88% 0.44%
Mar-10 20.95 17527.77 0.72% 6.68%
Apr-10 25.3 17558.71 20.76% 0.18%
May-
10 19.55 16944.63 -22.73% -3.50%
Jun-10 23.8 17700.9 21.74% 4.46%
Jul-10 24.3 17868.29 2.10% 0.95%
Aug-10 24.15 17971.12 -0.62% 0.58%
Sep-10 24.3 20069.12 0.62% 11.67%
Oct-10 24.3 20168.89 0.00% 0.50%

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2. Balance sheet
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund
Equity share capital 161.26 161.26 161.26 161.26 161.26
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus -128.92 -77.82 -38.96 -69.8 -83.1
Loan funds
Secured loans 39.07 57.63 78.95 123.21 116.02
Unsecured loans 56.77 71.39 47.14 64.31 43.49
Total 128.18 212.46 248.38 278.97 237.67
Uses of funds
Fixed assets
Gross block 480.14 481.25 486.02 487.3 479.53
Less : revaluation reserve 7.83 8.85 9.88 11.93 13.08
Less : accumulated depreciation 341.27 327.25 321.78 301.63 280.28
Net block 131.04 145.15 154.37 173.74 186.17
Capital work-in-progress 5.89 5.56 5.9 3.17 0.78
Investments 69.44 70.17 71.8 70.61 70.25
Net current assets
Current assets, loans & advances 187.44 143.85 191.84 254.18 196.33
Less : current liabilities & provisions 265.63 165.29 184.73 222.94 218.2
Total net current assets -78.19 -21.44 7.11 31.25 -21.87
Miscellaneous expenses not written - 13.03 9.21 0.2 2.34
Total 128.18 212.46 248.38 278.97 237.67
Notes:
Book value of unquoted investments 69.44 69.43 71.06 69.88 69.52
Market value of quoted investments - 1.41 1.75 1.77 5.05
Contingent liabilities 182.24 154.6 163.67 46.67 190.32
Number of equity sharesoutstanding (Lacs) 1611.72 1611.72 1611.72 1611.72 1611.72

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