Vertical Analysis

The table given below shows the results of a vertical analysis conducted on the income statements of two companies, Maruti Suzuki and Tata Motors.

Standalone Profit and Loss account

Maruti Suzuki India

$\%$ Share of Revenue

Tata Motors

$\%$ Share of Revenue

$($in Cr$)$

Year $1$

Year $1$

Income

Revenue from operations $($Gross$)$

$76,140\mathrm{.}80$

$48,388\mathrm{.}49$

Less: Excise$/$Service tax$/$Other levies

$9,321\mathrm{.}40$

$4,376\mathrm{.}41$

Revenue from operations $($Net$)$

$66,909\mathrm{.}40$

$43,652\mathrm{.}08$

Other operating revenues

$1,125\mathrm{.}40$

$711\mathrm{.}92$

Total operating revenues

$68,034\mathrm{.}80$

$44,364\mathrm{.}00$

Other income

$2,279\mathrm{.}80$

$978\mathrm{.}84$

Total Revenue

$70,314\mathrm{.}60$

$45,342\mathrm{.}84$

Expenses

Cost of materials consumed

$42,629\mathrm{.}60$

$60\mathrm{.}6\%$

$28,108\mathrm{.}88$

$62\mathrm{.}0\%$

Purchase of stock$-$in trade

$4,482\mathrm{.}10$

$6\mathrm{.}4\%$

$3,945\mathrm{.}97$

$8\mathrm{.}7\%$

Changes in inventories of FG$,$ WIP and stock$-$in$-$trade

$-380\mathrm{.}1$

$-251\mathrm{.}43$

Employee benefit expenses

$2,331\mathrm{.}00$

$3\mathrm{.}3\%$

$3,558\mathrm{.}52$

$7\mathrm{.}8\%$

Finance costs

$89\mathrm{.}4$

$0\mathrm{.}1\%$

$1,590\mathrm{.}15$

$3\mathrm{.}5\%$

Depreciation and amortisation expenses

$2,602\mathrm{.}10$

$2969\mathrm{.}39$

Other expenses

$8,772\mathrm{.}80$

$12\mathrm{.}4\%$

$8,697\mathrm{.}42$

$19\mathrm{.}2\%$

Less: Inter unit$/$segment$/$division transfer

$103\mathrm{.}6$

$941\mathrm{.}55$

Total Expenses

$60,373\mathrm{.}30$

$47,677\mathrm{.}35$

Profit$/$Loss before extraordinary items and tax

$9,941\mathrm{.}30$

$-2334\mathrm{.}51$

Extraordinary items

$-$

$-$

Profit$/$Loss before tax

$9,941\mathrm{.}30$

$-2334\mathrm{.}51$

Total tax expenses

$2,603\mathrm{.}60$

$59\mathrm{.}22$

Profit$/$Loss for the Period

$7,337\mathrm{.}70$

$-2,393\mathrm{.}73$

Identify the key concerns for Tata Motors and suggest the steps that the company should take in order to address these concerns.