First Preliminary Progress

Report
Submitted To:
Mrs. Sonia Garg
Submitted By:
Harshpreet
Kaur (!"#!#!$%
Payal &adhera
(!"#!#!'(%
Saurabh (!"#!#"")%
*ashna &erma
(!"#!#!!#%
Ra+it Kaushal
(!"#!#!,(%
TATA MOTORS LTD
Tata Motors Limited (formerly TELCO, short for Tata Engineering and
Locomotive Company) is an Indian multinational automobile manufacturing
company headquartered in Mumbai, Maharashtra (India) and a subsidiary of
the Tata Group of companies. Its products include passenger cars, trucks, vans,
coaches, buses, construction equipment and military vehicles. It is the orld!s
seventeenth"largest motor vehicle manufacturing company, fourth"largest truck
manufacturer and second"largest bus manufacturer by volume.
Industry Scenario# The global operating industry scenario of Tata motors
improved considerably in $% &'()"(*, as economic activity is strengthened and
spending in most economies began to recover.
I. The Tata Motors Group recorded a &&.&+ groth in gross turnover from
,s. (-./&..(/ crores in the previous year to ,s. &)/,/&/ crores in $%
&'()"(*.
II. Tata Motors is India!s largest 01 manufacturer, ith an overall domestic
market share of 2..*+.
III. Tata Motors en3oys )(.&+ of market share in the multi"utility vehicles,
hich in lu4ury car segment, it has /.*+ market share.
Market Position:
2013 ET 500
Rank
Company
Turnover(
Cr)
PAT(C
r)
Assets(
Cr)
6 Tata Motors Ltd. 189629.16 9892.61 103202.37
16 Mahindra & Mahindra Ltd. 69577.10 4099.20 58323.75
23 Maruti Suzuki India Ltd. 45134.50 2469.20 20945.20
45 Hro Moto!or" Ltd. 19669.29 2118.16 5980.14
53 #a$a$ %uto Ltd. 20839.12 3144.05 8439.10
67 %shok L&'and Ltd. 11133.04 631.3 6621.16
STRE!T":
I. Tata motors is a market leader in 5utomobile Industry ith high market
share.
II. Tata Motors 0ompany have huge employee base.
III. 6est knon for its efficient cars.
I1. Tata Motors 7imited is India8s largest automobile company.
1. It has been aggressively acquiring foreign brands to increase its global
presence. 9nership of heritage of 6ritish motor brands like 7and ,over
and :aguar.
1I. Managerial ;4pertise < ;4perience of 0;9, 0M9 = 0$9.
1II. >uccessful ?e @roducts launched in last 2 years.
1III. >trong financial condition.
IA. >trong ,=B team.
#EA$ESS:
I. Bespite buying the :aguar and 7and ,over brands, Tata has not got a
foothold in the lu4ury car segment in its domestic, Indian market.
II. ,eturn on Investment on T5T5 motors shares in lo.
III. >ome @oor @roduct Besign.
OPPORT%ITIES:
I. ;4panding to ?e Geographic 5reas.
II. The T5T5 motors can take the advantage of their lo cost car by entering
into third orld countries here people have lo purchasing poer.
III. :oint ventures in other countries allo to easily enter into ne market.
I1. The T5T5 motors should focus in developing lu4ury cars here itself.
1. 5cquisition of rivals.
1I. The ?ano could sell ell in other geographic markets. ;4panding markets
such as 0hina may find the ?ano 3ust the anser.
T"REATS:
I. ,ising prices in the global economy could pose a threat to Tata Motors
7imited on a couple of fronts. The price of steel and aluminum is
increasing putting pressure on the costs of production.
II. >ince the company has focused upon the commercial and small vehicle
segments, it has left itself open to competition from overseas companies
like Conda, Toyota, $ord and Mercedes"6enD for the emerging Indian
lu4ury segments.
III. >lo market groth.
I1. ,ising ,a material cost.
1. @oerful competitors for the lu4ury market including Conda, Toyota,
$ord and Mercedes"6enD are pushing into the Indian market.
&uture P'ans:
I. ,atan tata to invest in e"commerce site snapdeal.
II. Tata Motors plans EFite8 to take on the bestsellers like Maruti 0elerio and
$ord $igo.
III. Tata Motors plans to invest up to ,s (,2'' crore in the ne4t financial
year to develop ne products and technologies for its commercial vehicle
segment, hich has faced a prolonged slodon in sales.
Sa'es (reakdo)n:
Anecdotes:
I. The Tata Indica on people over ith its lo fuel consumption and
poerful engine. It as so successful that even ,over began selling it in
the GF under the name of City Rover.
II. Hhen Tata Motors unveiled the ?ano dubbed as the orld8s cheapest car
they made international headlines and captured much of the orld8s
attention, especially from people ho have never seen or heard about
Tata cars.
Director*s Report: The Birectors present their >i4ty"?inth 5nnual ,eport
for $% &'()"(*. 5s required under the Ministry of 0orporate 5ffairs8 General
0ircular '-I&'(* ?o. (I(.I&'()"07"1 dated 5pril *, &'(*. The directors
appreciate and value the contributions made by every member of the Tata
Motors family globally.
"I!"LI!"TS
Dividend: 0onsidering the 0ompany8s financial performance, the Birectors
have recommended a dividend of ,s. & per share ((''+) on the capital of
&,J)/,J(),(&& 9rdinary >hares of ,s. & each.
Vehicle Sales and Market share: The Tata Motors Group sales of the year stood
at ('&'2*/ vehicles, loer by (*.*+ as compared to $% &'(&"(). Global sales
of all commercial vehicles ere *)&/'' vehicles, hile sales of passenger
vehicles ere at 2-J.*/ vehicles.
Power of Five Campaign: Birectors stated in the report about the crucial E@oer
of $ive8 campaign hich particularly focus on trucks and lays emphasis on#
+, 6etter FM@7 -, 6est 1ehicle uptime ., Cighest ,esale value /, 6est in
class * year arranty 0, 7oest Maintenance cost
Our Opinion: 5fter going through the Birector8s report and studying all
financial statements He come to kno that Tata Motors recorded a &&.&+
groth in gross turnover from ,s. (-./&..(/ crores in the previous year to ,s.
&)/,/&/ crores in current $%. Thus, 0ompany is folloing a rapid groth and
ill top the ;T charts hopefully this year. 5lso Tata Motors further enhanced its
Eoffice of the customer8 initiative hich He think ill pay them rich dividends
through significantly increased interactionIrelation ith its customers. The
CoriDone4t strategy as mentioned in the Birector8s report shocased product
initiatives like Kest, 6olt, improved nano, Gltra trucks and a sle of other
refreshed products. ?o this ill boost up the company8s revenues, future
investment and ensure a competitive pipeline in the near future.
Independent Auditors Opinion:
Report on t1e &inancia' Statements
He have audited the accompanying financial statements of TATA MOTORS
LIMITED (Lthe 0ompanyL), hich comprise the 6alance >heet as at March )(,
&'(*, the @rofit and 7oss >tatement and the 0ash $lo >tatement for the year
then ended.
Management2s Responsi3i'ity 4or t1e &inancia' Statements
The 0ompany!s Management is responsible for the preparation of these
financial statements that give a true and fair vie of the financial position,
financial performance and cash flos of the 0ompany in accordance ith the
5ccounting >tandards referred to in >ection &((()0) of the 0ompanies 5ct.
Auditors2 Responsi3i'ity
9ur responsibility is to e4press an opinion on these financial statements based
on our audit. He conducted our audit in accordance ith the >tandards on
5uditing issued by the Institute of 0hartered 5ccountants of India. Those
>tandards require that e comply ith ethical requirements and plan and
perform the audit to obtain reasonable assurance about hether the financial
statements are free from material misstatement.
Opinion
In our opinion and to the best of our information and according to the
e4planations given to us, the aforesaid financial statements give the information
required by the 5ct in the manner so required and give a true and fair vie in
conformity ith the accounting principles generally accepted in India#
I. in the case of the 6alance >heet, of the state of affairs of the 0ompany as
at March )(, &'()M
II. in the case of the @rofit and 7oss >tatement, of the profit of the 0ompany
for the year ended on that dateM and
III. in the case of the 0ash $lo >tatement, of the cash flos of the 0ompany
for the year ended on that date.
Auditor*s In4o:
The above report has been audited by NB;79ITT; C5>FI?> = >;77>
(chartered accountant), ? . 1enkatram(@artner).
Our Opinion:
5ccording to us, the 5uditor8s opinion gives a firm vie about ho company8s
accounts are performing and ensure there is no misconduct of regulations during
the audit process. $olloing a ell defined accounting standard is further
making it easy for people to understand the hole audit process.