TATA MOTORS. Tata Motors is the Indias Largest Automobile Company with more than 4.

5 million Tata
th vehicles plying in India. Tata motors are the market leader in Commercial vehicle and 5

largest in medium and heavy truck manufacturer in the world. It is second largest in Bus manufacturer in world.

In India the company has the manufacturing hub in Pune, Jamshedpur, Lucknow, Dharwad Pantnagar, and Sanand in Gujrat, and a nationwide dealership, sales, services and spareparts network comprising more than 2000 touchpoints.

Tata Company exports their car, trucks and buses to countries like, Europe, Africa, the Middle East, South Asia, the Southeast Asia, and Australia. They have their research centres in India UK, and subsidiary companies in South Korea and Spain.

In 2005, Tata Motors entered into a MOU, with Fiat in which the first output have been distributed of Fiat branded cars in India by Tata Motors, and also a proposal to setup a joint venture in India to manufacture passenger cars, engines and transmission for the Indian and overseas markets.

At present, Tata Motors exports the Tata Safari (SUV), the Tata pickup, and the Tata Indica range of passengers cars to Italy, Spain, Turkey, Portugal, and Malta, through its established distributors in these markets. And the response is also very encouraging as in Italy Tata motors the 4th largest in pickups, and 3rd largest in turkey. In Financial year 2005-06 Tata motors earned net revenue of $4.65bn which is 16.8% more than the previous year financials 04-05, it was volume growth mostly because of exports increased.

In the same year Tata company took a stake of 21% in Hispano Carrocera which is now a 100% subsidiary of Tata motors, one of the largest bus and coach bodybuilders in Europe with the manufacturing facility in Morocco.

In Oct 2005 Tata technology acquired a 94% stake in INCAT which is a supplier of engineering and design, product lifecycle management and product centric IT services to the automotive, aerospace and durable goods industries. Currently the stake is 81%.

Tata motors is the only company in India with a broad based presence across the industry, in all segments of the commercial vehicle market, heavy and medium commercial vehicle, light commercial vehicle, pickups, sub one tonne mini trucks, and key segments, compact , midsize car and utility vehicle segments, of the passenger vehicle market. Tata motors enjoys Market share of more than 60% in commercial vehicles and 15-20% in passenger vehicles.

List of Tata Subsidiary Companies:

Concorde Motors (India) Limited (CMIL) HV Transmissions Limited (HVTL) and HV Axles Limited (HVAL) Sheba Properties Limited TAL Manufacturing Solutions Limited (TAL) Tata Daewoo Commercial Vehicle Company Limited (TDCV), Korea Tata Motors (SA) Proprietary Limited (TMSA) Tata Motors (Thailand) Limited (TMTL) (70:30 JV) Tata Motors European Technical Centre plc. (TMETC) Tata Motors Finance Limited (TMFL) Tata Motors Insurance Broking & Advisory Services Limited (TMIBASL), Tata Technologies Limited (TTL) Telco Construction Equipment Company Limited (Telcon) TML Distribution Company Limited (TDCL)

ASSOCIATE COMPANIES OF TATA MOTORS :

Automobile Corporation of Goa Limited (ACGL) Fiat India Automobiles Private Limited (FIAPL), (JV) Hispano Carrocera S.A. (HC) Nita Co. Ltd. Tata AutoComp Systems Limited (TACO) Tata Precision Industries Pte. Ltd. Tata Cummins Limited (TCL)

Accounting Standards:
AS-1 DISCLOSURE OF ACCOUNTING POLICIES AS-9 REVENUE RECOGNISATION Company recognises revenue on the sale of products, net of discounts, when the products are delivered to the dealer / customer or when delivered to the carrier for export sales, which is when risks and rewards of ownership pass to the dealer / customer. Sales include income from services, transfer of technology relating to automotive products and exchange fluctuations relating to export receivables. Sales include export and other recurring and non-recurring incentives from the Government at the national and state levels. Sale of products is presented gross of excise duty where applicable, and net of other indirect taxes. Discount and variable marketing expenses pertaining to Jaguar and Land Rover group are netted off against sales. Revenues are recognised when collectability of the resulting receivables is reasonably assured.

AS-6 DEPRECIATION Depreciation is provided on straight line method basis (SLM) over the estimated useful lives of the assets.

AS-10 FIXED ASSET Fixed assets are stated at cost of acquisition or construction less accumulated depreciation / amortisation. AS-19 LEASES (i) Finance Lease Assets acquired under finance leases are recognised at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the outstanding liability. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability. Assets given under finance leases except for those stated in (b)(ii) above, are recognised as receivables at an amount equal to the net investment in the

lease and the finance income is based on a constant rate of return on the outstanding net investment. (ii) Operating Lease Leases other than finance lease, are operating leases, and the leased assets are not recognised on the Companys balance sheet. Payments under operating leases are recognised in Profit and Loss Account on a straight-line basis over the term of the lease.

AS-2 VALUATION OF INVENTORIES

Inventories are valued at the lower of cost and net realisable value. Cost of raw materials and consumables are ascertained on a moving weighted average /monthly moving weighted average basis, except for Jaguar and Land Rover which is on FIFO basis. Cost, including variable and fixed overheads, are allocated to work-in-progress and stock-in-trade determined on full absorption cost basis. Net realisable value is estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses.