SUMMER TRAINING PROJECT

SUMMER TRAINING PROJECT

TATA MOTORS

Submitted in partial fulfillment of the requirements for the award of the degree of

Bachelor of Business Administration (Computer Aided Management)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

MRS.HARPREET GUJRAL ROHIT DHAMA

0081371907

Institute of Information Technology & Management

New Delhi 110058

Batch (2007-2010)

LIST OF CONTENT

S No

Topic

Page No

1

Chapter-1: Profile of the Company.

1-12

2

Chapter-2: SWOT Analysis of the Company.

13-19

3

Chapter-3: Analysis of Financial Reports.

20-24

4

BIBLIOGRAPHY

25

5

APPENDIX

26

LIST OF TABLES

S No

Topic

Page No

1

Balance Sheet.

I

2

Profit & Loss Account.

II

3

Cash Flow Statement.

III

4

Ratio Analysis.

21-24

LIST OF FIGURES

Figure No

Title

Page No

1

Sales figure of the company.

8

Certificate

I am Mr.Rohit Dhama, Roll No. 0081371907 certify that the summer training Report(BBA-CAM 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.

Signature of the guide

Date

Mrs. Harpreet Gujral

(Project Guide)

Designation:

Institute of information Technology & Management

New Delhi-11058

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.

NAME OF THE COMPANY:

Tata motors is on a Multinational basis. It is owned by Tata group.

Address : Him motors Pvt. Ltd.

Tata motors

D-9, Udyog nagar

Near Rohtak road

New Delhi-11004

Tel no. : 9810033277

Fax. No : 25487040

Zonal address(North zone)

Address : Him motors Pvt. L

Plot No.2/42, Sant Vihar

Ansari Road, Daryaganj

New Delhi 110 002

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.

Functional area of business

Company deals in purchase, services and spare-parts of tata products

SIZE (in terms of manpower) OF Company:

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 %

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.

Market share and Position of the Company

S. no. Automobile Manufacturers Market share%

1 Maruti Udyog Ltd. 56

2 Tata Motors Ltd 19

3 Hyundai Motors India Ltd. 11

4 Honda Motors India Ltd. 4

5 Ford 3

6 General Motors India Ltd. 2

7 Others 5

PRODUCT RANGE OF THE COMPANY:-

Passenger cars

Indica Vista

Indica V2

Indica V2 Turbo

Indica V2 Xeta

Indica V2 Dicor

Indigo Marina

Indigo CS

Indigo XL

Nano

Fiat cars

Utility vehicles

Safari Dicor

Sumo Granade

Sumo

Xenon XT

Trucks

Medium heavy commercial vehichle

Intermediate heavy commercial vehichle

Large heavy commercial vehichle

Small heavy commercial vehichle

Tata Novus

TL 4X4

Commercial passenger cars

Cars

Winger

Magic

Military vehicle

Tata LSV (Light Specialist Vehicle)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions

Tata LPTA 713 TC (4x4)

Tata LPT 709 E

Tata SD 1015 TC (4x4)

Tata LPTA 1615 TC (4x4)

Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 TC (4x2)

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

Mr. P M Telang

Managing Director - India Operations

Mr. Rajiv Dube

President (Passenger Cars)

Mr. C Ramakrishnan

Chief Financial Officer

Mr. R Pisharody

President (Commercial Vehicles)

Mr. S N Ambardekar

Plant Head (CVBU, Pune)

Mr. S B Borwankar

Head (Jamshedpur - Plant)

Mr. A M Mankad

Head (Car Plant)

Mr. B B Parekh

Chief (Strategic Sourcing)

Mr. U K Mishra

Vice President (ADD and Materials-CVBU)

Mr. S Krishnan

Vice President (Commercial - PCBU)

Mr. P Y Gurav

Vice President (Corp. Finance - A/c and Taxation)

Mr. S J Tambe

Vice President (Human Resources)

Mr. A Gajendragadkar

Vice President (Corp. Finance - Business Planning)

Mr. N Pinge

Chief Internal Auditor

Mr. R Bagga

Vice President (Legal)

Company Secretary

Mr. H K Sethna

Corporate Communications

Mr. Debasis Ray

Head - Corporate Communications

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

Mr. P M Telang

Managing Director - India Operations

Mr. Rajiv Dube

President (Passenger Cars)

Mr. C Ramakrishnan

Chief Financial Officer

Mr. R Pisharody

President (Commercial Vehicles)

Mr. S N Ambardekar

Plant Head (CVBU, Pune)

Mr. S B Borwankar

Head (Jamshedpur - Plant)

Mr. A M Mankad

Head (Car Plant)

Mr. B B Parekh

Chief (Strategic Sourcing)

Mr. U K Mishra

Vice President (ADD and Materials-CVBU)

Mr. S Krishnan

Vice President (Commercial - PCBU)

Mr. P Y Gurav

Vice President (Corp. Finance - A/c and Taxation)

Mr. S J Tambe

Vice President (Human Resources)

Mr. A Gajendragadkar

Vice President (Corp. Finance - Business Planning)

Mr. N Pinge

Chief Internal Auditor

Mr. R Bagga

Vice President (Legal)

Company Secretary

Mr. H K Sethna

Corporate Communications

Mr. Debasis Ray

Head - Corporate Communications

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

SOURCE OF DATA COLLECTION

1. Brochure of the company

2. Personal visit to the company

3. websites are-

1). www.Automobileindia.com

2). www.Tata motors.com

3). www. linkedin.com/companies/tata-motors

CHAPTER 2

SWOT ANALYSIS

Strengths

1. Tata Motors excels when it comes to innovation through intensive research and development. Their ability to make the least expensive car on the market, the Nano which will retail for $2,500, is far beyond what any other car dealership has created. This innovation gives Tata Motors their main competitive advantage. Tata Motors makes everything from tractor-trailers to the worlds least expensive car. This product diversity grants them a competitive advantage over their competitors because they can satisfy more markets and customer needs.

2. Tata Motors possesses is high corporate responsibility. They donate a portion of their profits from stock increases towards a specific charity. This highlights Tata Motors overall desire for community improvement while also emphasizing Tata Motors high morals and values which is something money can not buy.

3. The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leadership for tomorrow.

4. Tata Motors is unique in a way in which when it buys a company. Tata Motors keeps the original management of that company intact. The company that Tata Motors purchases will look exactly the same in terms of management and organizational structure as if it was never purchased by Tata Motors.

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.

Opportunities

1. In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments.

2. One of the major opportunities that Tata Motor faces is that as of right now 90 percent of China and Indias adult population do not own cars, partly because cars are costly and require more expenses after purchased. So the market for a low-priced car is huge which benefits Tata Motors perfectly since they produce the lowest priced car on the market. This is a huge opportunity for Tata Motors because if they can get their feet into that market of people that do not have cars because they cannot afford them, then they will make large profits down the road.

3. Japan, North America, and Europe automobile sales went up over the years because of demand for smaller cars increased. This demand for smaller cars is a great window of opportunity for Tata Motors because not only are their cars small, but they are cheap and environmentally friendly as well. Once people in these countries get Tata Motor automobiles then their automobile sales will continue to rise.

4. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

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.

BEST PRACTICES FOLLOWED BY:-

Retail

Infi niti Retail Limited is a 100% subsidiary of Tata Sons Ltd., operating a national chain of multi-brand electronics megastores under the brand name Croma.

Infi niti Retail has entered into a technical and sourcing agreement with an Australian retail giant, Woolworths Ltd., which currently operates more than 2,000 stores across Australia in twelve different formats, including consumer electronics retailing. Infi niti Retail Ltd., owns and runs the retail operations in India while Woolworths provides technical support and strategic sourcing facilities from its global network.

The company's electronics megastores offer the countrys widest range of consumer electronics products across categories and brands. With more than 6,000 products, 180 brands in eight categories home entertainment, small appliances, white goods, computers, communication, music, imaging and gaming software the stores are spread over 12,000 to 20,000 sq.ft.

The fi rst Croma- store was inaugurated on October 9, 2006 in a suburb of Mumbai, Juhu. In the 14 month period since then, Croma- has successfully launched 12 more stores in Mumbai, Ahmedabad, Pune, Bangalore and Surat. Croma will have 25 operating stores before the end of the fi nancial year 2007-2008, including in Delhi and Chennai.

With the philosophy of We help you buy, Croma- stores provide world-class service through a team of highly qualifi ed and trained staff, the best product range in India to choose from and great prices on a consistent basis.

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 CII-ITC Sustainability Award 2006 for Signifi cant Achievement on the Journey towards Sustainable Development

and the Golden Peacock Award for Corporate Social Responsibility.

CHAPTER -3

ANALYSIS OF FINANACIAL STATEMENTS

Ratio Analysis

1. Gross Profit Ratio

Gross profit ratio measures the relationship of gross profit to net sales and is usually represented as a percentage.

Gross profit ratio = (gross profit / net sales) * 100

For 2007,

Gross profit ratio = (4678.33/40340.79) * 100 = 11.60 %

For 2008,

Gross profit ratio = (4267.58/36922.6) * 100 = 11.56 %

Comments This ratio reflects the efficiency with which a firm produces its products.

Higher the ratio, better it is.

In 2007, the ratio was 11.60%, which is exceptionally good and in 2008 it declined to 11.56 %, which indicates decrease in profitability.

2. Net Profit Ratio

It measures the relationship of net profit to sales and is usually represented as a percentage. This is calculated by dividing the net profit by sales.

Net Profit Ratio= (Net Profit / Sales) * 100

For 2007,

Net Profit Ratio = (2234.75/403040.79) * 100 = 5.54 %

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

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.

Current ratio = current assets / current liabilities

For 2007,

Current ratio = 19267.35 / 13644.56 = 1.41:1

For 2008,

Current ratio = 16277.92 / 9330.83 =1.74:1

Comments a current ratio of 2:1 is considered to be satisfactory.

In 2007, the ratio was 1.41:1 , which is higher than the ideal ratio. This indicates that the firm is liquid and has the ability to pay off its current obligations.

In 2008, the ratio further increased to1.74:1, which means that the liquidity has improved.

On the other hand, it also shows that funds are lying idle and the company should check upon its investment policies.

5.Proprietary Ratio

It highlights the general financial position of the enterprise and shows the extent to which the shareholders own the business.

Proprietary Ratio = Shareholders Funds / Total Assets

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.

Balance Sheet as at March 31, 2008

(Rs. in crores)

As at

March 31, 2007

SOURCES OF FUNDS

1. SHAREHOLDERS FUNDS

(a) Share Capital 385.54 385.41

(b) Reserves and Surplus 8311.98 7336.26

8697.52 7721.67

2. MINORITY INTEREST 468.31 249.96

3. LOAN FUNDS

(a) Secured 6011.87 4462.65

(b) Unsecured 5573.00 2839.25

11584.87 7301.90

4. DEFERRED TAX LIABILITY (NET) 974.45 817.27

5. TOTAL FUNDS EMPLOYED 21725.15 16090.80

APPLICATION OF FUNDS

6. FIXED ASSETS

(a) Gross Block 12975.65 10359.18

(b) Less - Depreciation 6060.49 5426.65

(c) Net Block 6915.16 4932.53

(d) Capital Work-in-Progress 5948.28 2581.65

12863.44 7514.18

7. GOODWILL (On Consolidation) 566.16 443.01

8. INVESTMENTS 2665.83 1174.59

9. CURRENT ASSETS, LOANS AND ADVANCES

(a) Interest accrued on investments 1.19 6.27

(b) Inventories 3294.64 3166.90

(c) Sundry Debtors 2060.51 1702.22

(d) Cash and Bank Balances 3833.17 1154.27

(e) Loans and Advances 10077.84 10248.26

19267.35 16277.92

10. CURRENT LIABILITIES AND PROVISIONS

(a) Current Liabilities 11319.19 7700.39

(b) Provisions 2325.37 1630.44

13644.56 9330.83

11. NET CURRENT ASSETS 5622.79 6947.09

12. MISCELLANEOUS EXPENDITURE 6.93 11.93

13. TOTAL ASSETS (NET) 21725.15 16090.80

Profit and Loss Account for the year ended March 31, 2008

INCOME

1. SALE OF PRODUCTS AND OTHER INCOME FROM OPERATIONS 40340.79 36922.61

LESS: EXCISE DUTY 4689.31 4561.41

35651.48 32361.20

2. DIVIDEND AND OTHER INCOME 267.48 153.18

35918.96 32514.38

EXPENDITURE

3. MANUFACTURING AND OTHER EXPENSES 32601.33 28986.71

4. EXPENDITURE TRANSFERRED TO CAPITAL AND OTHER ACCOUNTS (1360.70) (739.91)

31240.63 28246.80

PROFIT BEFORE DEPRECIATION, INTEREST, AMORTISATION AND TAX 4678.33 4267.58

5. PRODUCT DEVELOPMENT EXPENDITURE 65.95 85.02

6. DEPRECIATION 782.07 688.09

7. INTERESTAND DISCOUNTING Charges 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 BEFORE TAX 3086.29 3088.00

10. TAX EXPENSE (851.54) (883.21)

PROFIT AFTER TAX 2234.75 2204.79

11. SHARE OF MINORITY INTEREST (132.25) (74.22)

12. SHARE OF PROFIT IN RESPECT OF INVESTMENTS IN ASSOCIATE

PROFIT FOR THE YEAR 2167.70 2169.99 COMPANIES 65.20 39.42

13. BALANCE BROUGHT FORWARD FROM PREVIOUS YEAR 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 AVAILABLE FOR APPROPRIATION 3534.16 3152.40

16. APPROPRIATIONS

(a) Tax on Interim Dividend by subsidiaries (including

Groups share of subsidiaries dividend tax) 10.89 4.56

(b) Proposed Dividend 578.43 578.07

(c) Tax on Proposed Dividend (including

Groups share of subsidiaries dividend tax) 87.42 105.52

(d) Residual dividend paid for FY 2005-06 (including tax) 0.07

(e) General Reserve 1047.43 1031.63

(f ) Special Reserve 12.20 5.26

(g) Reserve for Research and Human Resource Development 32.25 60.83

(h) Earned Surplus Reserve 1.42

(j) Balance carried to Balance Sheet 1764.12 1366.46

3534.16 3152.40

17. EARNINGS PER SHARE

(a) Basic Rupees 56.24 56.4

(b) Diluted Rupees 51.57 53.54

Cash Flow Statement

(Rs. in crores)

2007-2008 2006-2007

A. Cash flow from Operating Activities

Net Profit after tax 2167.70 2169.99

Adjustments for:

Depreciation (including Lease Equalisation adjusted in income) 777.58 684.31

Profit on sale of assets (net) (19.93) (17.39)

Profit on sale of investments (net) (135.89) (42.94)

(Reversal of provision) / Provision for diminution in value of investments (net) (2.93) 1.18

Provision for inter corporate deposits (net) (0.77) -

Gain on transfer of activity relating to financing of Construction Equipment (76.00) -

(Gain) / Loss on Liquidation of subsidiaries (0.64) 3.06

Share of Profit in respect of investments in associate companies (65.20) (39.42)

Share of minority interest 132.25 74.22

Wealth tax (0.24) 0.68

Tax expense 851.54 883.21

Interest / Dividend (net) 619.70 297.53

Gain on issue of shares by a subsidiary (4.66) (1.96)

Exchange difference (26.02) (69.39)

Amortisation of miscellaneous expenditure 0.96 0.66

Employee separation cost 4.04 4.03

2053.79 1777.78

Operating Profit before working capital changes 4221.49 3947.77

Adjustments for:

Trade and other receivables (698.36) (787.27)

Inventories (122.85) (684.01)

Trade and other payables 2916.20 1267.34

2094.99 (203.94)

Vehicle / other loans and hire purchase receivables (52.76) (3933.05)

2042.23 (4136.99)

Cash (used in) / generated from Operations 6263.72 (189.22)

Direct Taxes Paid (net (668.17 ) (686.26)

Net Cash (used in) / from Operating Activities 5595.55 (875.48)

B. Cash Flow from Investing Activities

Purchase of fixed assets (5280.39) (2758.75)

Loan to associates (53.34) -

Sale of fixed assets 46.44 99.34

Proceeds from transfer of activity relating to financing of Construction Equipment 887.42 -

Investments in associate companies (95.51) -

Investments in Mutual Fund (made) / sold (net) (792.28) 138.35

Acquisition of stake in joint venture (442.09) -

Investments others (421.68) (18.35)

Decrease / (Increase) in Investments in retained interests in securitisation transactions 14.26 (28.66)

Sale of investments in subsidiary companies 164.25-

Sale of investments in associate company 18.39 1.46

Sale / redemption of investments - others 245.21 42.04

Proceeds received on liquidation of subsidiaries 0.65 -

Payment for purchase of business from administrator (0.44)

Interest received . 154.60 45.01

Dividend received from associates 18.07 30.78

Dividend / Income on investments received 80.98 102.73

Receipt of Long Term Inter-corporate deposits 26.92 -

Decrease / (Increase) in short term Inter-corporate deposits 30.68 (60.00)

Net Cash used in Investing Activities (5397.42) (2406.49)

C. Cash Flow from Financing Activities

Proceeds from issue of Convertible Alternative Reference Securities (CARS) (net of issue expenses) 1969.99 -

Stamp duty on FCCN conversion (0.01) (0.09)

Proceeds from long term borrowings 5462.98 4213.51

Repayment of long term borrowings (4395.53) (977.98)

Increase in short term borrowings (net) 1138.51 861.00

Proceeds from issue of shares to minority shareholders 62.6815.58

Payment of premium on long term forward contracts (3.07)

Preliminary expenses incurred (2.71)

Dividend paid (including Dividend Tax) (685.08) (575.39)

Tax paid on Interim Dividend by Subsidiaries (4.56)

Dividend paid to minority shareholders (17.08) (7.34)

Interest paid [including discounting charges paid, Rs. 296.30 crores, (2006-07 Rs.172.27 crores)] (1049.59) (465.38)

Net Cash from / (used in) Financing Activities 2486.87 3053.57

Net Decrease in Cash and cash equivalents 2685.00 (228.40)

Cash and cash equivalents as at March 31 (Opening Balance) 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)

Add : Translation adjustment on opening cash and bank balance of foreign subsidiaries (4.84) 4.32

Add :Translation adjustment on reserves of foreign subsidiaries (4.63) (6.26)

Less : Exchange fluctuation on FCCN proceeds kept outside India and on foreign currency bank balances (14.55) (1.28)

Cash and cash equivalents as at March 31 (Closing Balance) 3833.17* 1154.27*

*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

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.

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.

RATAN TATA

(PROMOTER,CHAIRMAN EXECUTIVE-NON)

Dr V Sumantran

(EXECUTIVE DIRECTOR)

Ravi Kant

(MANAGING DIRECTOR)

Praveen P Kadle

(EXECUTIVE DIRECTOR)

Helmut Petri

(NON-EXECUTIVE, NON-INDEPENDENT)

S A Naik

(NON-EXECUTIVE, INDEPENDENT)

N N Wadia

(NON-EXECUTIVE, INDEPENDENT)

V R Mehta

(NON-EXECUTIVE, INDEPENDENT)

J K Setna

(NON-EXECUTIVE, INDEPENDENT)

RGopalakrishnan

(PROMOTER EXECUTIVE-NON)

J J Irani

(PROMOTER EXECUTIVE-NON)

N A Soonawala

(PROMOTER EXECUTIVE-NON)

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