5 Notable Points of Balance Sheet of Tata Motors

Tata Motor is the part of Tata Group and a public company whose total assets are $ 23.131 billions. It is also Indian Multinational Corporation in automotive industry. It means, it is doing business at international level with the help of its subsidiaries. So, it makes consolidated balance sheet. Total assets and liabilities of this company and its subsidiary company are added in consolidated balance sheet.

Today, we studied its consolidated balance sheet and we found following 5 notable points which should be known by all.


1. Revaluation Reserves

On 31st march 2011, Tata motors consolidated balance sheet was showing 144.63 Cr. as revolution reserves. Revaluation reserves is made when we revalue our some assets. If our assets are more than its book value, we will gain the revaluation reserve fund. It is also different from regular depreciation. Consolidated balance sheet of Tata Motors was showing it as source of fund. It means, if Tata Motors sells same asset, at that time, this fund may be liquidated.

2. Capital Work in Process

We have already explained capital work in process in Balance Sheet of Company Example. Like NTPC, Tata Motors is also doing work in big project in which it has invested its capital but still that projects are not completed. So, capital work in progress is investment of uncompleted projects. So, Tata Motors was showing it Rs. 11,728.86 Cr. as the part of application of funds in its balance sheet.

3. Market Value of Quoted Investments

Actually, it is not showing in the balance sheet, it is showing in the footnote. It means marketing value of investment which are showing in balance sheet on its historical cost. We see that every day share market and mutual fund market rates will be different. So, our investment in it will also be different. So, to show market value of quoted investments in the note form will guide to investors before taking any decision.

4. Foreign Currency Monetary items translation difference Account

Foreign currency monetary items translation difference account represent the amount if any company convert foreign transaction from foreign currency into presentation currency. You know the exchange rates are changing from time to time. It was the time when one dollar's value is Rs. 39. Now, it is Rs. 48. Now, we study it with following example.

5. Deferred Tax Liabilities

Tata Motors showed Rs.  2,096 Cr. as deferred tax liabilities. It means there is difference between actual tax which is calculated by Tata Motors and by Income tax authorities. So, more tax will have to be paid. For study more detail of this concept, you can read at here.