PREFACE

Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected HOD Dr.Pramesh Gautam, Head of Department of Business Management , SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY, SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of Mrs. Shweta Rajput he rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers , family members , friends and all those whose encouragement has infused courage in me to complete to work successfully.

SUKHMAL JAIN BBA VTH SEM.

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected , Head of Department Dr.Pramesh Gautam, Department of

Business Management , SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of He rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers , family members , friends and all those whose encouragement has infused courage in me to complete to work successfully.

SUKHMAL JAIN BBA VTH SEM.

DECLARATION BY THE CANDIDATE

Date : I declare that the project report titled " FINANCIAL ANALYSIS OF TATA MOTO. " on Market Segmentation is nay own work conducted under the supervision of MRS. SHWETA RAJPUT Department of Business Management, SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR To the best of my knowledge the report does not contain any work , which has been submitted for the award of any degree , anywhere.

SUKHMAL JAIN BBA VTH SEM.

CERTIFICATE
The project report titled " FINANCIAL ANALYSIS OF

TATA MOTO. " been prepared by SUKHMAL JAIN BBA VTH SEM., under the guidance and supervision of MRS SHWETA RAJPUT for the partial fulfillment of the Degree of BBA

Signature of the Supervisor

Signature of the Head of the Department

Signature of the Examiner

INTRODUCTION
India is an emerging country with huge potential. The domestic economy is now growing at around 9-10% per annum and Indias importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at the center of Indias new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturers product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive industry solution high up the automotive value chain. India eyes 25 million automotive jobs. India's GDP is set to double over the next decade In percentage terms, the automotive industry's contribution should also double. In dollar terms, the sector's contribution is set to quadruple to some $145bn With the worlds second largest and fastest-growing population, there is no denying Indias potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is
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already off to a good start, with a well-developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers.

Historical back ground In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories: Cars, twowheelers and heavy vehicles. The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry.
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 Within two-wheelers, motorcycles contribute 80% of the segment size Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.

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A Financial Analysis Of Tata Moto The company is the Indias largest automobile producing industry in the country. The company is having 24000 employees all across their units. The company was established in 1945 and enrolled its first vehicle in Uttar Pradesh in 1954 and taking over fiat in 1954. It is the first Indian automobile company which is listed in the New York stock exchange in September 2004. The company has many mergers and accusations with other foreign companies like jaguar, land rover, and fiat to enter the foreign market and make the country aware of the foreign products present in the market. (http://www.tatamotors.com/our_world/profile.php) Going further with the strengths and weakness of the company:Strengths of the company:The company has various ranges of products to satisfy all kinds of consumers present in the market. New products every time as there are variety of products for all kind of consumers starting from lower class to upper class. With mergers and acquisitions high end profit and market leader in the country with the products and launching of new products. New technological skills and high end employees for product creation sole distributors and manufacturers of the automobiles for lower middle class. Weakness:A weak safety standard as there is less safety in Tata cars so consumer switches over to the other product. The company follows a low cost strategy in its luxury cars also but the consumers when buys a luxury car of the company is not satisfied with the segment so shifts over to the other brand vehicle. Shareholders not getting benefit out of the company due to low ROI.
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OpportunitiesThe company produces low cost vehicles so the company mainly can target lower and middle class segments for their selling as in the country middle and low class people are more than higher class. Company can manufacture and bring up new luxury cars in the market as there are fewer players for luxury cars in the market. Getting with new joint ventures in other countries to promote the brand and the vehicle. Threats:Low safety standards of the product so it could be sold less. Rising prices of diesel, petrol so producing more efficient vehicles. Competitors following the same strategy that the Tata Company is following. (http://www.freeswotanalysis.com/automobile/76-tata-motors-swotanalysis.html) We would look into the ratio analysis of the company and compare both the financial years of the company that is 2009 and 2010 so as to see the progre Read more: http://www.ukessays.com/essays/finance/a-financial-analysisof-tata-motors-finance-essay.php#ixzz2JMBmdbVA

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FINANCIAL STATEMENT RATIO ANALYSIS Leverage Ratio Total debt ratio Total debt / capital employed For 2008Total debt - 63,345.5Capital employed - Net worth + borrowingOr Share capital + debt.86,975.2+ 63,345.5= 150320.763,345.5 / 150320.7 = .42 For 2007Total debt - 38,693.6Capital employed - 77,216.7 + 38,693.6= 115910.3(shr. cap) (debt)38,693.6 / 115910.3 = .33Debt equity ratio - Net worth / total debt Net worth = share cap.For 2008 86,975.2/63,345.5 = 1.37 For 2007 77,216.7 /38,693.6 = 1.99Capital equity ratio - Capital employed / net worth For 2008 150320.7 / 86,975.2= 1.73 For 2007 115910.3 / 77,216.7 = 1.50 Interest coverage ratio EBIT + depreciation / Interest2008 2007 Earning before tax 30,448.3 31,326.4 Add- Interest 9,127.2 4,650.639575.5 35977For 2008 - 39575.5 + 7,820.7/9,127.2 = 5.19 For 2007 - 35977 + 6,880.9 / 4,650.6= 9.21 In 2008, the long term financial position getting strong than 2008. Capability of paying long term debt. is increases. As we seen, debt ratio increases. And thecontribution of debt is increases in 2008 than 2007. and the part of share capital isalso increases in total capital employed than 2007. it means, company is increasingits capital through shares.

Activity Ratio Inventory Turnover Ratio:- Cost of goods sold / Inventory

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(2008) (2007)Cost of goods sold 254,571.5 234,753.6Inventory 32,946.4 31,669.0For 2008:- 254,571.5 / 32,946.4 = 7.72 For 2007 :- 234,753.6 / 31,669.0 = 7.41 Debtor Turnover Ratio :- Sales / debtor For 2008 :- 358,086.0 (sales) / 97,555.9 (debtor) = 3.67 For 2007 :- 325,143.8 (sales) / 101,638.5 (debtor) = 3.20 Average collection period (2008) = 360 / 3.67 = 98 days Average collection period (2007) = 360 / 3.20 = 112 days Assets Turnover Ratio :- Sales / Net assets or capital employed For 2008 :358,086.0 (sales) / 150320.7 (c.e.) = 2.38 For 2007 :- 325,143.8 (sales) / 115910.3 (c.e.) = 2.80 Working Capital Turnover Ratio:- Sales / Net working capital Net Working Capital = Current assets Current liability For 2008 = 192,673.5 - 188,948.8 = 3724.7 For 2007 = 162,779.2 - 127,633.7 = 35145.5 For 2008 :- 358,086.0 (sales) / 3724.7 (N.W.C.) = 96.13 For 2007 :- 325,143.8 (sales) / 35145.5 (N.W.C) = 9.25 As we seen, companys efficiency of using its assets is increasing in 2008 than2007. The inventory turnover ratio which shows its efficiency of selling
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product isincreasing. Average collection period is decreasing means company is selling itsproduct more on cash basis in 2008 than 2007. but companys assets turnoverratio is decreasing means sales is not growing according to its capital employedand working capital.

Profitability Ratio Gross Margin = Gross profit / Sales Gross Margin (2008) = 103,514.5 / 358,086.0 = .29 Gross Margin (2007) = 90,390.2 / 325,143.8 = .28EBIT Ratio = PAT / EBIT For 2008 = 21,677.0 / 37878.9 = .57 For 2007 = 21,699.9 / 35384.5 = .61Return on investment = EBIT / Capital employed For 2008 = 39575.5 / 150320.7 = .26 For 2007 = 35977 / 115910.3 = .31Return on equity = PAT / Net worth For 2008 = 21,677.0 / 86,975.2 = .25 For 2007 = 21,699.9 / 77,216.7 = .28 In profitability ratio, the gross profit ratio is increasing in 2008 than 2007. itmeans its profit is growing in sales. But companys EBIT ratio is decreasing meansinterest on capital and tax rate is increased in 2008 than 2007 which is responsiblein decreasing its PAT. And companys return on investment is decreased thatindicates that its earning on capital employed is decreased in 2008 than 2007. andits ROE is also decreases means its PAT on its share capital is decreased.

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Tata motors

Tata Motors is Indias largest automobile company. Its revenue in 20082009 was Rs 24,000 crore (U.S.$ 6.4 billion).It is the leader in commercial vehicles in each segment and the second largest in the passenger vehicles market ,with winning products in compact, mid-size car and utility vehicle segment. The company is the worlds fifth largest medium and heavy commercial vehicle manufacturer and the worlds second-largest medium and heavy bus manufacturer. The companys 29,600 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 Established in 1945, Tata Motors presence extends across the length and breadth of India. Over 3.5 million Tata vehicles have driven on Indian roads since the first one rolled out on 1954.The companys manufacturing base is spread across multiple plants, supported by a nationwide dealership, sales and services and spare parts network comprising of about 1,200 touch points. The company also has a strong auto finance operation, Tata Motors Finance for supporting customers in purchasing Tata Motors vehicles

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TELCO (TATA Engineering and Locomotive Company) Multinational Corporation. Headquarters in Mumbai. India's largest passenger automobile and commercial vehicle manufacturing company. World's 19th largest automaker. Sales: 19,654.41cr. Stock price: Rs. 347 In 1969 Tata motors had become an independent producer of Medium Commercial Vehicles. It had also developed the capability of designing, testing and manufacturing such vehicles. Leading commercial vehicle manufacturer and has significant presence in the multi-utility and passenger car segments. With the Launch of Tata Indica, a Euro 2 compliant vehicle is the countrys first indigenously designed, developed and manufactured passenger car. With the launch of Tata nano, Tata has penetrated the market to its extreme by making a car available for Rs. 132000 only. This is the cheapest car in India till date and with the announcement of its diesel variant it has made potential buyers to eagerly wait for it.

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Limitations of study
(1) (2) When the buyers are busy we cant get accurate data from them. According to the time limit of our project we can cover only the some area.

(3)

During survey some respondents may not give answer in proper manner.

OBJECTIVES OF STUDY
(1) To know market position of Tata automobile in the market. (2) To know consumer behavior for purchase of four wheeler.

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Questionnaire Questionnaire is a source of Primary Data. It is a simple way to collect data from general public Multiple choice questions were given to the respondents and they were asked to fill their opinion. The data was then analyzed and inferences were drawn on that basis. Sample of a questionnaire 1. WHAT IS YOUR SALARY? 1 LAC 1 LAKH -3 LAKH 3LAKH-5LAKH 5LAKH 2. WHICH VEHICLE DO YOU OWN? _____________________________________________________________ _________________________ 3. DID YOU RIDE SOME OTHER VEHICLE BEFORE THIS? YES NO 4. WHAT IS YOUR EXPERIENCE FROM THE PREVOIUS VEHICLE? SATISFIED NOT SATISFIED 5. WHICH IS THE MOST ESSENTIAL THING YOU PREFER WHILE BYING VEHICLE? PRICE MILEAGE POWER STEERING OTHERS 6. DOES TV AD APPEAL YOU? YES NO 7. DO YOU LIKE TV PROGRAMMES ON CAR? YES NO 8. DOES BRAND VALUE AFFECT YOUR DECISION ON BUYING VEHICLE? YES NO
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Research methodology Research Methodology: The data for the project was collected from malls, customers at showrooms, markets and from public also. Sample Size: Sample size of 60 was taken based on convenient Simple Random Sampling. Research Tools: The data was collected through Survey Questionnaire Method. Data Collection: Data was collected through the following:-

Primary sources: Questionnaire from General public Secondary Sources: Magazines, newspapers, Internet.

ANALYSIS Sample size 40

Respondents: Owners of Santro 9 Owners of Zen estilo 8 Owners of Indica 18 Owners of other cars 5

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Q1) what do you own? A) car B) Two Wheeler C) Nothing

From that it was found that:-

20 people owned a car 15 owned two wheelers and 5 dont nothing

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Q2) Which car do you own? a) zen estilo b) santro c) indica d) others

From that it was found that:-

8 people owns zen estilo 18people owns indica 9 people owns santro 5 people owns others

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Q3) Are you satisfied with it? A) Yes b) No

From that it was found that:-

25 were satisfied and 15 were not.

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(4) Car customers

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Q5) How much do you spend on maintenance on a monthly basis? a) <2000 b) 2000-4000 c) >4000

From that it was found that: 25 %spends below 2000 10% spends between 2000-4000 5 %spends above 4000

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(6) Sample of 30 customers, according to their income.

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Q7)Name he car that comes first in your mind when you think of small segment car in India?

From that it was found that: 9said zen estilo 8 said santro 17said Indica 6 said others

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Q8)Out of these which you will see first when you will buy a car?

From that it was found that: 12 people consider cost & perf. Before purchasing a car. 9 people consider perf.& style before purchasing a car. 8 people consider style before purchasing a car. 11 people consider cost before purchasing a car.

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(9)Are you planning to buy a car within next session?

From that it was found that: 29 people want to purchase within 1 year 11 people want to purchase in 1 month

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(10)Factors affecting buying of customers

Power steering Mileage Price Others

7 15 10 8

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FINDINGS & SUGESSTIONS FINDINGS TATA MOTORS is number three in passenger car market after marutisuzuki & Hyundai. Majority of the customers see TATA MOTORS with savings. Most of the customers spend large sum of money. Out of the samples, people are highly convinced that TATA MOTORS will yield them better results. As the sales of Maruti grows as well as Hyundais santro is still doing well in mid size and small size segment so the INDICA may be a good options for the company in this term for sustaining sales in long run as well as in the current situations. Product will have a gradual progress. Because most industries would wait for the response about the product from other Company. Customers were educated by me, about fuel efficient cars by TATA MOTORS.

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SUGGESTIONS Based on the findings from the analysis the following suggestions could be made: Demo of the product should be made available to Customers, since most of the purchase decisions are based on it. Technical details should be made available to the customers in the most accurate numerical form. The Indica has remained a bestseller throughout in the industry figuring in the top 3 selling list of cars for most of the years. The distribution channel should be more efficient to cater the demand during peak seasons like during dassraa, diwali etc .

The city is mostly dominated by the working class like people employed in high court, AG office( accountant general office) and government school employees who this year are getting more pay due to the recommendations made by the sixth pay commission so , the sales for mid size car can be enhanced in this scenario.

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BIBLIOGRAPHY Books: 1. Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth Edition) 2. Marketing Management, The McGraw.Hill Company Rajan Saxena (Third Edition) MAGAZINES: A) OUTLOOK BUSINESS (FEB, 2009) B) BUSINESS STANDARD (April-July 2009) C) 4PS OF BUSINESS AND MARKETING (June 2009) D) BUSINESS TODAY - Pick and Choose INTERNET: 1. Tata Motors' Official Website 2. Wiki - Tata Motors Ltd 8. htttp://www.moneycontrol/com/tata- group/Tata motors 9. http://www.yahoofinance.com/tatamotors 10.http://www.carwale.com/research/cars

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