Beruflich Dokumente
Kultur Dokumente
TATA MOTORS
Submitted in partial fulfillment of the requirements for the award of the
degree of
Bachelor of Business Administration (Computer Aided Management)
To
Submitted by:
MRS.HARPREET GUJRAL
ROHIT DHAMA
0081371907
LIST OF CONTENT
S No
Topic
Page No
1-12
13-19
20-24
BIBLIOGRAPHY
25
APPENDIX
26
LIST OF TABLES
S No
Topic
Page No
Balance Sheet.
II
III
Ratio Analysis.
21-24
LIST OF FIGURES
Figure No
Title
Page No
Certificate
I am Mr.Rohit Dhama, Roll No. 0081371907 certify that the summer training Report(BBACAM 154) entitled TATA MOTORS is carried out by me and it is an authentic work carried
out by me at TATA MOTORS. The matter embodied in this project work has not been
submitted earlier for the award of any degree or diploma to the best of my knowledge and
belif.
Rohit Dhama
Date:
Certified that the summer Trianing Reprt(BBA_CAM 154) entitled TATA
MOTORS done by MR. Rohit Dhama, Roll No. 0081371907 is completed under my
guidance.
Countersigned
Director/project Coordinator
Acknowledgement
I would like to express my heartfelt gratitude and the privilege to acknowledge our
esteemed guide Mrs. Harpreet Gujral without this project could have never been
successful.
I also express my thanks to prof. S.Chaturvedi for his valuable suggestions and
encouragement.
And last but the least, I express my deepest gratitude towards the teaching staff and
our fellow members who helped me to finish the task successfully.
Rohit Dhama
CHAPTER-1
PROFILE OF
THE
COMPANY
INTRODUCTION
Tata Motors founded by Jamshedji Nussarwanji Tata and J. Baker. Established in
1945, Tata Motors is Indias largest automobile company, with a portfolio of
commercial, passenger and utility vehicles. It is the first Indian automobile company
to list on the New York Stock Exchange.
Tata Motors is Indias largest commercial vehicle manufacturer. It ranks among the
worlds top five manufacturers of medium and heavy trucks and is the worlds second
largest medium and heavy bus manufacturer. It is Indias second largest passenger
vehicle player. Starting with commercial vehicles in 1954, it entered the passenger
vehicles segment in 1991.
In January 2008, Tata Motors also launched the worlds least cost car, the Tata Nano.
The Nano, Tata MotorsPeoples Car, designed with a family in mind, has a roomy
passenger compartment with generous leg space and head room. It can comfortably
seat four persons.
In March 2008, it finalised a deal with Ford Motor Company to acquire their British
Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and
Lanchester brand names and the purchase was completed on 2 June 2008
Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow,
Ahmedabad and Pune in India as well as manufacturing facilities in Argentina, South
Africa and Thailand.
Address
Tel no.
: 9810033277
Fax. No
25487040
Address
Tel no.
: 011 23271805
Fax. No
: 011 23271802
Email address
: tsrldel@tsrdarashaw.com
Headquarter address
Address
: Tata motors
Bombay house,24 Homi modi street
Mumbai
Maharashtra - 400001
Tel. no.
: 91 22 6665 8282
Email address
: www.linkedin.com/companies/tata-motors
Website name
: www.tata motors.com
Fax. No
: 91 22 6665 7799
VISION
To be a world class corporate constantly furthering the interests of all its stakeholders.
MISSION
For Customers
To strengthen the TATA brand and create lasting relationships with customers by
working closely with business partners to provide superior value for money over the
life cycle.
For Employees
To create a seamless organisation that incubates and promotes innovation, excellence
and the TATA core values.
For Vendors and Channel Partners
To foster a long term relationship so as to introduce a broad range of innovative
products and services, that would benefit our customers and other stakeholders.
For Community
To proactively participate in reshaping the countrys economic growth and to take a
holistic approach towards environmental protection
NATURE
The Group's principal activities are to manufacture and market Heavy, Medium and
Light Commercial Vehicles, Utility Vehicles and Passenger cars. The Group operates
in two segments: Automotive and Others. Automotive segment includes the business
of automotive products consisting of all types of commercial and passenger vehicles.
Other segment includes construction equipment, engineering solutions, automotive
components and software operations of subsidiaries. The Group also manufactures
spare parts for vehicles, marine engines, casting and forging.
10
Tata Motors Limited is Indias largest automobile company, with standalone revenues
of Rs. 25,660.79 crores (USD 5.5 billion) in 2008-09. It is the leader in commercial
vehicles in each segment, and among the top three in passenger vehicles with winning
products in the compact, midsize car and utility vehicle segments. The company is the
worlds fourth largest truck manufacturer, and the worlds second largest bus
manufacturer.
The companys 23,000 employees are guided by the vision to be best in the manner
in which we operate, best in the products we deliver, and best in our value system and
ethics.
Financial turnover:
Tata Motors, Indias largest automotive company, today reported revenues (net of
excise) of Rs3,878.1 crore for the quarter ended June 30, 2005, an increase of 8.6 per
cent, compared to Rs3,572.1 crore in the corresponding period in the previous year.
Profit before tax was Rs36 crore, an increase of 18.8 per cent, against Rs303 crore.
Net profit increased by 22.1 per cent to Rs272.67 crore compared to Rs223.36 crore.
The operating margin for the quarter was 12.6 per cent, compared to the operating
margin of 12 per cent for the corresponding period in the previous year. This increase
has been a result of cost control initiatives taken by the company.
Domestic sales of commercial vehicles stood at 37,228, a decline of 7 per cent. The
sales of light commercial vehicles increased by 22 per cent mainly due to introduction
of Ace, Indias first mini truck, launched in May, which has generated an enthusiastic
response. Passenger vehicles domestic sales stood at 41,191 units, an increase of 1 %
11
The company exported 9,073 vehicles during the quarter, a strong growth of 113 per
cent. Exports of commercial vehicles increased by 74 per cent and passenger vehicles
by 241 per cent. Exports to new markets such as South Africa and Turkey mainly
contributed to this growth. The FOB value of exports was Rs435.25 crore (US$100.01
million), an increase of 105 per cent.
12
Automobile Manufacturers
Market share%
56
19
11
5
6
7
Ford
General Motors India Ltd.
Others
3
2
5
13
Indica Vista
Indica V2
Indica V2 Turbo
Indica V2 Xeta
Indica V2 Dicor
14
Indigo Marina
Indigo CS
Indigo XL
Nano
Fiat cars
Utility vehicles
Safari Dicor
Sumo Granade
Sumo
Xenon XT
Trucks
15
Cars
Winger
Magic
Military vehicle
16
Board of Directors
Mr. Ratan N Tata (Chairman)
Mr. N A Soonawala
Dr. J J Irani
Mr. R Gopalakrishnan
Mr. Nusli N Wadia
Mr. S M Palia
Dr. R A Mashelkar
Mr. Nasser Munjee
Mr. Subodh Bhargava
Mr. V K Jairath
Mr. Ravi Kant
Mr. P M Telang
Senior Management
17
Mr. P M Telang
Mr. C Ramakrishnan
Mr. R Pisharody
Mr. S N Ambardekar
Mr. S B Borwankar
Mr. A M Mankad
Mr. B B Parekh
Mr. U K Mishra
Mr. S Krishnan
Mr. P Y Gurav
Mr. S J Tambe
Mr. R Bagga
Company Secretary
Mr. H K Sethna
Corporate Communications
Mr. Debasis Ray
Board of Directors
Mr. Ratan N Tata (Chairman)
Mr. N A Soonawala
Dr. J J Irani
Mr. R Gopalakrishnan
Mr. Nusli N Wadia
Mr. S M Palia
Dr. R A Mashelkar
Mr. Nasser Munjee
Mr. Subodh Bhargava
Mr. V K Jairath
Mr. Ravi Kant
Mr. P M Telang
18
Senior Management
Mr. P M Telang
Mr. C Ramakrishnan
Mr. R Pisharody
Mr. S N Ambardekar
Mr. S B Borwankar
Mr. A M Mankad
Mr. B B Parekh
Mr. U K Mishra
Mr. S Krishnan
Mr. P Y Gurav
Mr. S J Tambe
Mr. R Bagga
Company Secretary
Mr. H K Sethna
Corporate Communications
Mr. Debasis Ray
19
RATAN TATA
(PROMOTER,CHAIRMAN EXECUTIVE-NON)
N A Soonawala
J K Setna
(PROMOTER EXECUTIVE-NON)
(NON-EXECUTIVE, INDEPENDENT)
(NON-EXECUTIVE, INDEPENDENT)
RGopalakrishnan
(PROMOTER EXECUTIVE-NON)
(MANAGING DIRECTOR)
Praveen P Kadle
V R Mehta
J J Irani
(PROMOTER EXECUTIVE-NON)
Ravi Kant
N N Wadia
(EXECUTIVE DIRECTOR)
Dr V Sumantran
(NON-EXECUTIVE, INDEPENDENT)
(EXECUTIVE DIRECTOR)
S A Naik
(NON-EXECUTIVE, INDEPENDENT)
Helmut Petri
(NON-EXECUTIVE, NONINDEPENDENT)
20
I interacted during the summer training with Mr. Cherian Varughese, Customer
Relation Manager in Him motors Pvt. Ltd. D-9, Udyog nagar,Near Rohtak road,
New Delhi-11004
www.Automobileindia.com
2).
www.Tata motors.com
3).
www. linkedin.com/companies/tata-motors
21
CHAPTER 2
SWOT
ANALYSIS
STRENGTHS
22
23
WEAKNESSES
1. The company's passenger car products are based upon 3rd and 4th generation
platforms, which put Tata Motors Limited at a disadvantage with competing car
manufacturers.
2. Another weakness that Tata Motors faces is within its domestic market. Car
sales in India are less than 1 million annually. This draws a problem because
Tata Motors may not get the sales that the company hopes for and how can
they sell cars to people who are not buying cars?
3. One weakness which is often not recognised is that in English the word 'tat'
means rubbish. Would the brand sensitive British consumer ever buy into such
a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover.
24
OPPORTUNITIES
25
THREATS
1. Prices of commodity items like steel, non-ferrous and precious metals and
rubber witnessed an upward movement, which was partially offset by the
Companys cost reduction initiatives. The price of steel, in particular, has
increased by 30% 35% in the last 24 months and is expected to further
increase significantly in the coming year. Whilst the Company continues to
pursue cost reduction initiatives,increase in price of input materials could have
a negative impact on the demand in the domestic market and/or could severely
impact the Companys profitability to the extent that the same are not absorbed
by the market through price realisation.
2. The international crude prices witnessed steep increase from price levels of
$62 per barrel at the beginning to $100-110 per barrel towards the end of the
fiscal. Further hardening of fuel prices would adversely impact the automotive
sales.
3. Growing awareness amongst consumers is driving up expectations from
automobile companies in terms of providing world class features and
technology for which adequate price realization is not always possible.
4. Another main concern that Tata Motors faces is that cheap cars in India will
have an adverse effect on pollution and global warming because most of the
population will be able to afford the cars. With more people driving cars there
will be more accidents and deaths, as well as higher fossil fuels leaked into the
environment causing even more pollution then there already is.
26
27
Human resources
True to the tradition of the Tata Group, Tata Motors is committed to Corporate Social
Responsibility, and is also a signatory to the United Nations Global Compact. It
focuses on health, education, water management, environment and livelihood
generation, in areas adjacent to its operations and establishments. These continuing
initiatives received national recognition with Tata Motors being conferred the CIIITC Sustainability Award 2006 for Signifi cant Achievement on the Journey towards
Sustainable Development
and the Golden Peacock Award for Corporate Social Responsibility.
28
CHAPTER -3
ANALYSIS OF
FINANACIAL
STATEMENTS
Ratio Analysis
29
For 2007,
Net Profit Ratio = (2234.75/403040.79) * 100 = 5.54 %
30
For 2008,
Net Profit Ratio = (2204.79/36922.61) * 100 = 5.97%
Comments This ratio indicates the firms capacity to face adverse economic
conditions like low demand, price competition etc.
Higher the ratio, better it is.
In 2007, the ratio was 5.54 % but in 2008 it increased to 5.97%, which indicates
increase in profitability.
3.Return on Equity
This ratio is the relationship between profits of a company and its equity capital.
It is used to find out how efficiently the funds supplied by shareholders have been
used.
Return on Equity = (Net Profit after Interest and Tax / Shareholders funds) * 100
For 2007,
Return on Equity = (2234.75/8697.52) * 100 = 25.69%
For 2008,
Return on Equity = (2204.79/7721.67) * 100 = 28.55%
Comments In 2007, the ratio of return on equity was 25.69%, and in 2008 it has
increased to 28.55%.
A marginal increase in the ratio indicates firms higher ability of generating profit per
rupee of shareholders funds.
4.Current ratio
31
Current ratio is a measure of general liquidity and is most widely used to make the
analysis of short-term financial position or liquidity of a firm.
For 2007,
Current ratio = 19267.35 / 13644.56 = 1.41:1
For 2008,
Current ratio = 16277.92 / 9330.83 =1.74:1
5.Proprietary Ratio
It highlights the general financial position of the enterprise and shows the extent to
which the shareholders own the business.
32
For 2007,
Proprietary Ratio = 8697.52 / 21725.15 = 0.40:1%
For 2008,
Proprietary Ratio = 7721.67 / 16090.80 = 0.48:1%
Comments As this ratio represents the relationship of owners funds to total assets,
higher the ratio better is the long-term solvency of the business.
In 2007, the ratio was 0.40:1% and in 2008 it has increased to 0.48:1%, which means
that long-term solvency has improved.
33
SOURCES OF FUNDS
1. SHAREHOLDERS FUNDS
(a) Share Capital
(b) Reserves and Surplus
385.54
385.41
8311.98
7336.26
8697.52
2. MINORITY INTEREST
468.31
7721.67
249.96
3. LOAN FUNDS
(a) Secured
6011.87
4462.65
(b) Unsecured
5573.00
2839.25
11584.87
4. DEFERRED TAX LIABILITY (NET)
7301.90
974.45
21725.15
817.27
16090.80
APPLICATION OF FUNDS
6. FIXED ASSETS
(a) Gross Block
12975.65
10359.18
6060.49
5426.65
6915.16
4932.53
5948.28
2581.65
12863.44
7. GOODWILL (On Consolidation)
566.16
8. INVESTMENTS
2665.83
7514.18
443.01
1174.59
1.19
6.27
(b) Inventories
3294.64
3166.90
2060.51
1702.22
3833.17
1154.27
10077.84
10248.26
19267.35
16277.92
11319.19
7700.39
2325.37
1630.44
13644.56
11. NET CURRENT ASSETS
9330.83
5622.79
34
6947.09
6.93
21725.15
11.93
16090.80
INCOME
1. SALE OF PRODUCTS AND OTHER INCOME FROM OPERATIONS
40340.79
36922.61
LESS: EXCISE DUTY
4689.31
4561.41
3
5651.48
32361.20
267.48
153.18
3
5918.96
32514.38
EXPENDITURE
3. MANUFACTURING AND OTHER EXPENSES
32601.33
28986.71
4. EXPENDITURE TRANSFERRED TO CAPITAL AND OTHER ACCOUNTS
(1360.70)
(739.91)
3
1240.63
28246.80
4678.33
4267.58
5. PRODUCT DEVELOPMENT EXPENDITURE
65.95
85.02
6.
782.07
DEPRECIATION
688.09
743.06
405.81
8. AMORTISATION OF MISCELLANEOUS EXPENDITURE IN SUBSIDIARIES
0.90
0.52
9. ADJUSTMENT OF MISCELLANEOUS EXPENDITURE IN SUBSIDIARIES
0.06
0.14
PROFIT
3086.29
BEFORE
3088.00
10.
(851.54)
TAX
EXPENSE
(883.21)
PROFIT
2234.75
TAX
AFTER
TAX
2204.79
(132.25)
(74.22)
12. SHARE OF PROFIT IN RESPECT OF INVESTMENTS IN ASSOCIATE
36
PROFIT
FOR
THE
2167.70
65.20
YEAR
2169.99
COMPANIES
39.42
1366.46
984.10
14. ADJUSTMENT FOR REVISED AS 15 IN A SUBSIDIARY
(0.69)
15. TRANSLATION ON OPENING BALANCE IN RESPECT
OF FOREIGN SUBSIDIARIES
(1.00)
AMOUNT
3534.16
AVAILABLE
FOR
APPROPRIATION
3152.40
16. APPROPRIATIONS
(a) Tax on Interim Dividend by subsidiaries (including
Groups
10.89
share
of
dividend
tax)
4.56
(b)
578.43
subsidiaries
Proposed
Dividend
578.07
share
of
subsidiaries
dividend
tax)
105.52
0.07
(e)
1047.43
General
1031.63
(f
12.20
Reserve
Special
Reserve
5.26
32.25
60.83
(h) Earned Surplus Reserve
1.42
(j)
Balance
1764.12
1366.46
3534.16
3152.40
carried
to
Balance
Sheet
Rupees
56.4
(b) Diluted
51.57
Rupees
53.54
37
38
2006-2007
2167.70
2169.99
Adjustments for:
Depreciation (including Lease Equalisation adjusted in income)
777.58
684.31
(19.93)
(17.39)
(135.89)
(42.94)
(2.93)
1.18
(0.77)
(76.00)
(0.64)
3.06
(65.20)
(39.42)
132.25
74.22
Wealth tax
Tax expense
(0.24)
0.68
851.54
883.21
619.70
297.53
(4.66)
(1.96)
(26.02)
(69.39)
0.96
0.66
Exchange difference
Amortisation of miscellaneous expenditure
Employee separation cost
4.04
4.03
2053.79
1777.78
4221.49
3947.77
Adjustments for:
Trade and other receivables
(698.36)
Inventories
(122.85)
2916.20
(787.27)
(684.01)
1267.34
2094.99
(203.94)
(52.76)
(3933.05)
2042.23
(4136.99)
6263.72
(189.22)
(668.17 )
(686.26)
5595.55
(875.48)
(5280.39)
Loan to associates
(2758.75)
(53.34)
887.42
(95.51)
(792.28)
138.35
(442.09)
Investments others
Decrease / (Increase) in Investments in retained interests in securitisation transactions
Sale of investments in subsidiary companies
(421.68)
(18.35)
14.26
(28.66)
164.25
-
18.39
1.46
245.21
42.04
0.65
(0.44)
Interest received .
154.60
45.01
18.07
30.78
80.98
102.73
26.92
30.68
39
(60.00)
(5397.42)
(2406.49)
1969.99
(0.01)
(0.09)
5462.98
4213.51
(4395.53)
(977.98)
1138.51
861.00
62.68
15.58
(3.07)
(2.71)
(685.08)
(575.39)
(4.56)
(17.08)
(7.34)
(1049.59)
(465.38)
2486.87
3053.57
2685.00
(228.40)
1154.27
1386.44
Add:- Cash and Bank balance taken over on acquisition of stake in a joint venture
17.92
Less: Cash and bank balances of subsidiaries under liquidation, taken over by Administrator
(0.55)
(4.84)
4.32
(4.63)
(6.26)
Less : Exchange fluctuation on FCCN proceeds kept outside India and on foreign currency bank balances
(14.55)
(1.28)
3833.17*
1154.27*
Add : Translation adjustment on opening cash and bank balance of foreign subsidiaries
*Includes Cash Collateral Rs. 1594.07 crores (as at March 31, 2007 Rs. 401.49 crores, as at March 31, 2006 Rs. 294.82 crores)
Previous periods figures have been restated, wherever necessary, to conform to this periods classification.
CHAPTER 4
40
LESSON
LEARNT
LESSONS LEARNT
This summer training project was a profitable experience as it showed the real
application of all the knowledge that I gained till yet.
41
It helped me to know the real corporate world and how things are carried out and how
the problems are dealt with.
General Experience:
Summer training was a very knowledgeable experience and I certainly learnt a lot
from this kind of industrial exposure. I came to know about the difference in the
theoretical knowledge and its actual implementation. Our teachers try to give us every
kind of an example in our classroom lectures but still such a training gives us a more
vivid information about how does an enterprise function.
I also came to know about the various strategies the company might opt for to
increasing its sales and thereby profit.
42