Mahindra & Mahindra

RESEARCH METHODOLOGY The following would be the steps followed with respect to the data available from secondary sources: 1. Understanding Process: a. Reading annual reports and understanding the accounting policies followed by the companies. b. Conciliation of accounts (profit and loss and balance sheet) of Mahindra and Mahindra and Tata Motors Pvt. c. Economic Industry Company analysis

Data In this project the source of data collection is secondary data. Secondary data: Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. Some secondary data Published Material Journals Company profiles Company annual reports Internet Search

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Why Automobile Industry? 

Personal interest: We have a personal interest in automobile industry. I have a big collection of collection of logos and image of automobile industry and I want also job in automobile industry as marketing manager after complete my PGDM.

 Industry growth: The Automotive industry in the Republic of India is one of the largest in the world. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009.

 Job opportunity: In India automobile industry will be one of the highly growing markets. In future there will be lot of job in this sector.

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OBJECTIVE OF THE REPORT 1. Develop understanding of financial statements including consolidated financial statements; 2. Capture techniques of financial statement CVP analysis;. 3. Enable understanding of accounting standards. 4. It helps achieving their personal goal. 5 .It is maintained the department‟s contribution at a level suitable to the organizations needs. 6. To know Profitability of company 7. Solvency - its ability to pay its obligation to creditors and other third parties in the long-term;

8. Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations; 9. To know the Stability of company.

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CHAPTER-1 INTRODUCTION AUTOMOBILE INDUSTRY With five thousand years of history behind it, a five-decade young nation and the largest democracy in the world, India today has the second largest volume of human resource in the universe. It has no more than 2.5 per cent of global land but is the home of one sixth of the world's population of more than 1.1 billion. India possesses one of the richest reserves of biodiversity, minerals and metals, soils and water, flora and fauna in this part of the globe and has climatic conditions suitable for round the year economic activity in any part of the nation. Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants. Every other day, we have been hearing about some new launches, some low cost cars – all customized in a manner such that the common man is not left behind. In 2009, the automobile industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis. The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNCs.

Automobile industry in India In India, as in many other countries, the auto industry is one of the largest industries. It is one of the key sectors of the economy. The industry comprises of automobile and the auto component sectors and encompasses commercial vehicles, multi utility vehicles, passenger cars, twowheelers, three-wheelers, tractors and related auto components. In India, since the early 1940s when the auto industry rolled out first passenger car, its significance in the economy has progressively increased. However, from its early days until the 4

mid-1980s for two-wheelers and LCVs, and until the early 1990s for passenger cars, the focus of development of the automotive industry has been on import substitution. With this the contribution of automobile industry to the GDP has risen from 2.7 per cent of GDP in 1992-1993 to 4.5 per cent by 1996-1997. However, with a worldwide economic slowdown, auto industry‟s growth pattern has shown a downward trend in last two years.

Current status of the automotive industry Installed capacity in different segments of the automobile industry

Segment Installed capacity (in numbers) Commercial vehicles

410 000

Cars and multi utility vehicles

1146000

Two- and three-wheelers

5 696 000

Grand total

7 252 000

Emerging trends in Indian automobile sector Globalization is pushing auto majors to consolidate, to upgrade technology, enlarge product range, access new markets and cut costs. They have resorted to common platforms, modular assemblies and systems integration of component suppliers and e-commerce. Environmental pollution and the need to conserve existing supply of fossil fuels have led to search for alternative fuels. In addition to supporting Greenfield research in this area, an ambitious phased programmed to upgrade carbon fuel quality commensurate with higher emission norms is also being undertaken. Foreign direct investment norms have already been considerably relaxed. Unhindered import of automobiles, including new and second hand vehicles, has also been permitted. Most non-tariff barriers have also been relaxed or removed.

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An ambitious programmed to upgrade the quadrilateral of highways in the country, the Government is laying an eight-lane expressway linking all metropolitan and several important capital towns across the country paving the way for movement of heavier haulage vehicles.

Suggested measures for more conducive growth of the Automobile industry in the region The automobile industry across the world has great potential to trigger sustained employment, mobility, inter-sectoral industrial growth and thus conduce conditions for general economic and social well-being. However, there is need to promote and sustain international cooperation between Governments and industry. There are separate measures, which require addressing at the national and international levels. Some suggested steps at both levels are listed below. 1. Suggestions at the national level Further lessening the incidence of taxes and loosening of non-tariff barriers has to be attempted with a faster pace faster. A regime of single tax across the country is an ideal situation and possibilities of this should be explored. 2. Suggestions at the international level Serious and sustained dialogue on regional cooperation in automobile sector should begin at the earliest. Dialogue should be regular and focused in which Governments and industry should both engage. The recent statistics of custom duties show that the average tariff rates of different countries have declined. However, it has been noticed that the problem of high tariffs is still prevalent in certain sectors. These high tariffs are generally noticed in developed countries. Reduction of peak tariffs is necessary to facilitate free flow of automobiles. Affordability of quality automobiles should be focus of industry across the world to facilitate volumes and widespread ownership

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COMPANY PROFILE

Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $7.1 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image. Mahindra is the only Indian company among the top tractor brands in the world. It is today a full-range player with a presence in almost every segment of the automobile industry, from twowheelers to CVs, UVs, SUVs and sedan. Mahindra recently acquired a majority stake in REVA Electric Car Co Ltd. (now called Mahindra REVA), strengthening its position in the Electric Vehicles domain. The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.

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History Few groups can identify as closely with India's destiny and industrial progress as the Mahindra Group. In fact, Mahindra is like a microcosm of India. Both were born around the same time, had the same aspirations and both experienced the inevitable troughs and crests in the journey towards their goals. Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for Few groups can identify as closely with India's destiny and industrial progress as the Mahindra Group. In fact, Mahindra is like a microcosm of India. Both were born around the same time, had the same aspirations and both experienced the inevitable troughs and crests in the journey towards their goals. And both continue to march on the path to progress and global recognition. The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United States of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle that had proved its invincibility on the battlefields of World War II be ideal for India's rugged terrain and its kutcha rural roads? Swift action followed thought. The Mahindra brothers joined hands with a distinguished gentleman called Ghulam Mohammed. And, on October 2nd, 1945, Mahindra & Mohammed was set up as a franchise for assembling jeeps from Willys, USA. Two years later, India became an independent nation and Mahindra & Mohammed changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and became the first Finance Minister of Pakistan. Since then, Mahindra & Mahindra has grown steadily in size and stature and evolved into a Group that occupies a premier position in almost all key sectors of the economy. The Group's

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history is studded with milestones. Each on taking the Group forward. In fact, today, its total turnover is about 7.1 billion dollars. Mahindra is a group in a hurry, engaged in an ambitious, sustained and prolonged penetration into the global arena. Its spirit can be encapsulated in the words of the poet Robert Frost, a favourite of India's first Prime Minister, Pandit Jawaharlal Nehru: "The woods are lovely, dark and deep, But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep." For Mahindra & Mahindra, this translates into many more milestones to be set up before it rests. If ever. The year 2007-08 and has also received the A+ GRI rating for the year 2008- 09. 

The automotive division which manufactures utility vehicles ,light commercial vehicles and three wheelers

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The tractor(Farm Equipment) division makes agricultural tractors and implements that are used in conjunction with tractors and has also ventured in manufacturing of industrial engines

M$M employs around 11,600 people and eight manufacturing facilities spread over 50, 0000 squares meters. It has 49 sales offices that supported by a network of over 780 dealers across India. Models 

Mahindra Bolero and MahindraBoleroCamper

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Mahindra Scorpio

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Mahindra-Renault Logan

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Mahindra Champion

Core-Business Activities 

Automotive

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Farm Equipment

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Mahindra Systems and Technologies

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Trade and Financial Service

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Information Technology

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Infrastructure Development

Community Initiatives 

Mahindra United Word College of India

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Mahindra United, a football club based in Mumbai, Maharashtra

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Mahindra Foundation

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K.C Mahindra Education Trust:Nanhi Kali

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HSTORY OF MAHINDRA & MAHINDRA AUTOMOTIVE Mahindra & Mahindra (M&M) was established in 1945 as Mahindra & Mohammed. Later on, after the partition of India, one of the partners - Ghulam Mohammad - returned to Pakistan, where he became Finance Minister. As a result, the company was renamed to Mahindra & Mahindra in 1948. M&M started its operation as a manufacturer of general-purpose utility vehicles. It assembled CKD jeeps in 1949. Over the passing years, the company expanded its business and started manufacturing light commercial vehicles (LCVs) and agricultural tractors. Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed its dexterity in manufacturing army vehicles. Soon, it started its operations abroad, through its plants set up in China, the United Kingdom and the USA. M&M partnered with companies prominent in the international market, including Renault SA, International Truck and Engine Corporation, USA, in order to mark its global presence. M&M also started exporting its products to several countries across the world. Subsequently, it set up its branches including Mahindra Europe Srl (based in Italy), Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd. At the same time, M&M managed to be the largest manufacturer of tractors in India, by holding leadership in the market of the country, for around 25 years. The company is an old hand in designing, developing, manufacturing and marketing tractors as well as farm implements. It made its entry to the passenger car segment in India, with the manufacture of Logan (mid-size sedan) in April 2007, under the Mahindra Renault collaboration. Soon after the consider able success of Logan, M&M started launching a wide range of LCVs and three wheelers as well as SUVs including Scorpio and Bolero. In the present time, Bolero has gained immense popularity in India. It is one of the most opted vehicles in its class. MAHINDRA BOLERO Mahindra Bolero is one of the most successful and popular utility vehicle of the Mahindra and Mahindra Group. The car is robust in appearance and it has been elegantly designed, keeping in mind the conditions of the Indian roads. Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturer has equipped it with a 2500 cc diesel engine with5- speed transmission.

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April 08, 2008, Mumbai: Mahindra & Mahindra Ltd. (M&M), one of India‟s leading auto brands, has announced that its popular Bolero SUV has sold a record 50,000 units in 2007-08. The Bolero is the first brand in the SUV/UV/MPV category to cross 50,000 units in one year and India‟s leading SUV brand for two years in a row. “With its stylish appeal and rugged nature, the Mahindra Bolero has emerged as the clear favorite amongst SUV enthusiasts across the country since its launch eight years ago. The fact that it is the first brand in the SUV/UV/MPV category to notch up sales of more than 50,000 units in a single year is also a clear validation of our customer centric approach to business. Today, the Bolero is perceived as a stylish but affordable SUV which caters to different customer needs and takes on all kinds of terrain with ease,” said Mr. Vivek Nayer, Vice President – Marketing, Auto Sector, Mahindra and Mahindra Ltd. Since its launch in June 2000, the Bolero has evolved over the years, incorporating a host of features and aesthetics which match the evolving lifestyle aspirations of Indian consumers. In 2007, M&M launched the New Bolero which offered a bold new style, greater comfort and conveniences. In January 2008, Mahindra also introduced the Bolero Special Edition, a limited edition of India‟s most popular SUV with exciting new features for the young urban customer. MAHINDRA SCORPIO Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle in India in 2002. This SUV has redefined the expectations for the design of SUVs with its sturdy looks and powerful performance, the sophisticated interior design adds to the further glory to the appearance. MAHINDRAINGENIO Mahindra & Mahindra is planning to launch a new multi-purpose vehicle (MPV) to take on the Toyota Innova and the Chevrolet Tavera in both the individual buyer and taxi segments. Mahindra has currently named the project Ingenio. The vehicle is expected to hit the market 2009 in MAHINDRA RENAULT LOGAN Much awaited Mahindra-Renault Logan has been launched in India. This compact sedan is a spacious, practical and affordable vehicle. The outlook of Logan is impressive and the basic version is a value for money, however the top-end versions are a bit high on price. The prominent feature of this car is its performance, interiors and economy. 12

MAHINDRA XYLO Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle (MUV) “Xylo” in India on January 13, 2009. The car boasts of having all the luxurious features that are seen in today‟s sedans, with the ample space of a utility vehicle. Xylo's muscular stance contributes to its commanding road presence. Fully packed with the latest features, the MUV is sure to impress Indian consumers and provide a stiff competition to the other vehicles within its class Performance of Mahindra XYLO Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel engine, which generates a power of 112bhp @ 3800 rpm and a peak torque of 24 kgm @ 1800-3000 rpm. The powerful engine is developed on the NEF CRDe platform and is mated to 5-gears manual transmission. The car accelerates from rest to 60 km/h in just 5.8 seconds MAHINDRA MAXX The Mahindra Maxx, a product under the Mahindra Maxx range, is a spacious passenger utility vehicle with a maximum seating capacity of 10 persons. It is perfect vehicle for large families going on long trips. The MUV comes with a spacious cabin with decent legroom. Available in 4 main choices: Base, TX, LX and Festara, the MUV comes loaded with a lot of merits. It has a long wheelbase of 2430 mm to provide for a large seating capacity and cargo space. The vehicle has a high ground clearance of 200 mm which gives it good stability on offroad drives. Because of these reasons, the Mahindra Maxx is more popular in semi-urban and rural areas of the country. The vehicle has high fuel efficiency and delivers more than any other vehicle in its category. It comes with a 3-year warranty so that initial maintenance is not heavy on the pockets MAHINDRA MARSHAL Mahindra Marshal Deluxe Royale is a Sport and Utility Vehicle with has a seating capacity of nine people. Its design resembles Mahindra‟s old model of jeeps; but with some modifications. It has a 5-door design with a hard top, ensuring safety. The interiors are comfortable too with ergonomically designed seats affording travelling comfort.

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The Mahindra Marshal Deluxe Royale can be a good purchase with regards to its seating capacity and also its technologically advanced features. Although, the price is on a bit higher side, it is worth investing.

Product Profile

Mahindra Scorpio

Mahindra Bolero

Mahindra Xylo

Mahindra Marshal

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Mahindra Maxx

Mahindra Logan Car

MILSTONE, AWARDS AND ACCOLADES

M&M’s 61st year was studded with a number of noteworthy achievements, prestigious prizes and glittering awards. DUAL HONOURS FOR CHAIRMAN MR. KESHUB MAHINDRA Chairman, Mr. Keshub Mahindra Was awarded the “Business Visionary Award 2006” instituted by the National Institute of Industrial Engineering (NITIE), Mumbai. Chairman, Mr. Keshub Mahindra was also awarded the prestigious IBS Kolkata Lifetime Achievement Award for his „unparalleled contribution to industrial growth and social and economic development of the community‟. The Institute of Chartered Financial Analysts of India‟s (ICFAI) India Business School (IBS) presented it, Kolkata, at the Strategy Summit 2007, held in Kolkata. SLEW OF HONOURS FOR MR. ANAND MAHINDRA Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of prestigious awards in 2006-07, including: 15

 The prestigious CNBC Asia Business Leader of the Year Award for the Year 2006 as well as the CNBC TV India “Business Leader of the Year Award”.

 The „CEO of the Year‟ award at the India Brand Summit 2006 co-sponsored by Business Standard and ITM Business School in association with Times Now and DNA newspaper.

 The LMA Entrepreneur of the Year 2006 award, instituted by the Ludhiana Management Association (LMA).

 The Most Inspiring Corporate Leader of the Year‟ Award by NDTV Profit

 The NDTV Profit – Car & Bike Award 2007 for Automobile Man of the Year.

Mr. Anand Mahindra was also nominated as a Member of the Council of the Executive Committee of the National Sports Development Fund (NSDF) of the Govt. of India. He was featured in the list of 50 Most Influential Indians in Business Week‟s edition dated August 13, 2007 HIGHEST CRISIL RATING FOR M&M M&M has received the highest Governance & Value Creation rating, CRISIL GVC Level – I from CRISIL for the ability to create value for all stakeholders, while adopting sound corporate governance practices.

DUN & BRADSTREET AMERICAN EXPRESS CORPORATE AWARDS 2006 Mahindra & Mahindra was rated as the leading Indian company in the Automobile – Tractors sector in the „Dun & Bradstreet – American Express Corporate Awards 2006‟. The Automobile Sector comprises of three categories – Passenger Vehicles, Commercial Vehicles and Tractors.

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These awards recognize the virtues of size and growth in the awards methodology. M&M ranked No. 1 in these two segments in the premier Dun & Bradstreet India publication, India‟s Top 500 Companies 2006.

MAHINDRA RECEIVES AMITY HR EXCELLENCE AWARD Mahindra & Mahindra was honored with the Amity HR Excellence Award at the Fourth Amity Global HR Summit 2007 held at the Amity International Business School, Noida. The Amity HR Excellence Award recognized Mahindra as one the most admired companies across the global on account of its innovative strategies for Human Resources Management and Development. GLOBAL HR EXCELLENCE AWARD FOR M&M Mahindra & Mahindra won the Global HR Excellence Award for Innovative HR practices (Manufacturing Sector), in the Asia Pacific HRM Congress, held in Mumbai. These awards recognize organizations and individuals who have embraced change, encouraged constructive challenges and demonstrated entrepreneurial skills in the corporate world.

M&M WINS BOMBAY CHAMBER GOOD CORPORATE CITIZEN AWARD 2006-07 M&M was presented with the coveted Bombay Chamber Good Corporate Citizen Award 200607 at a glittering ceremony held to celebrate the Chamber‟s 172nd Foundation Day on September 21, 2007. Mr. Bharat Doshi, Executive Director, M&M Ltd. and Mr. Rajeev Dubey, Member of the Group Management Board and Chairman, Mahindra & Mahindra CSR Council, received the award on behalf of the company. This Award recognizes and honors conspicuous achievement by corporate organizations by way of service to the civic community, in addition to outstanding operational performance. It takes into account several parameters, including Business Performance, Corporate Interests, Employee Welfare, Customer and Stakeholder Satisfaction and Social Investment. GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE GOVERNANCE Mahindra & Mahindra won the coveted Golden Peacock Award for Excellence in Corporate Governance 2006. This award validates the company‟s „Best-in-Class‟ corporate governance practices and reflects its transparent and ethical dealings with stakeholders across the entire value 17

chain. It recognizes the Management‟s commitment to the highest standards of corporate conduct and its commitment to Corporate Social Responsibility as a distinct activity that helps build commendable social values and adds to the ethical fiber of the organization. BEST AUTOMOTIVE MANUFACTURING SUPPLY CHAIN EXCELLENCE AWARD Mahindra & Mahindra has been awarded as the organization with the “Best Automotive Manufacturing Supply Chain Excellence”. The awards were presented by India Times Mindscape (Times of India Group) along with the Business India Group at the Express, Logistics & Supply Chain Awards held in Mumbai on September 28, 2007. A. C. Neilson is accredited with the research for the award nominees and winners.

HIGH RANKINGS FOR MAHINDRA M&M was ranked second in the prestigious e Most Trusted Car Company in India study conducted by TNS. M&M scored 127 points, just seven points below the top ranking company, according to a TNS communiqué. 18

 M&M was ranked 14th in The Economic Times prestigious „ET 500‟ list of top achieving companies in India? The company has moved up four ranks from last year. To quote from the „ET 500‟ write-up: “M&M‟s „art-to-part‟ strategy of diversification into the auto parts value chain and its plans for new platforms for utility vehicles and joint venture with Renault for Logan have led to a gain in ranks.”

 M&M was ranked 22nd in Business India‟s annual survey of the country‟s top companies - Super 100

 M&M was ranked 31st in Business Today‟s annual survey of India‟s most valuable companies

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ABOUT THE COMPANY

Tata Motors Limited is India‟s largest automobile company, with revenues of

35,651.48 crore

(US$8.02 billion) in 2007-08. 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. Tata Motors‟ presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954.The company‟s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company‟s dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.

History Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1935 as a locomotive manufacturing unit and later expanded its 20

operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially the UK and Italy.

Tata's global operations Tata Motors has been in the process of acquiring foreign brands to increase its global presence and currently has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights of Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea‟s second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo .In 2005 Tata Motors acquired a 21% stake in Hispano Carrocera, a Spanish bus and coach manufacturer. Giving it controlling rights of the company. Tata Motors continued its product line expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009.In 2006, it formed a joint venture with the Brazil-based Marcopolo to manufacture fully-built buses and coaches for India and other international markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also has franchisee/joint 21

venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many countries it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa.

Tata Central Archives Archives play a pivotal role in preserving the history of any organisation. The idea of establishing a storehouse of Tata records was originally conceived by JRD Tata: while assigning the task of penning the group‟s history to mark the centenary celebrations of Jamsetji Nusserwanji Tata‟s first venture – the Empress Mills in Nagpur – JRD felt the lacuna of not having a central repository of records. Tata Central Archives (TCA) was launched by JRD Tata in Bombay (now Mumbai) in January of 1991; it became a division of Tata Services in 1997. In 2001, the archives moved to Pune. Housed in the lush green precincts of Tata Management Training Centre, TCA was formally inaugurated by Ratan Tata, Chairman, Tata Sons, on February 13, 2001.

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PROFILE OF THE ORGANIZATION TATA MOTORS LIMITED Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.70, 938.85 crores (USD 14 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 world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 24,000 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." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and 23

subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centers in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. 24

In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels. . It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas – employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative health care. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

25

HISTORY OF TATA MOTORS The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings and machine tools. The commercial diesel vehicles which were known `Tata Mercedes Benz' (TMB) is now called `Tata' vehicles after the expiry of the collaboration agreement with Daimler-Benz AG, West Germany. In 1960 the company's name, which was Tata Locomotive & Engineering Company Ltd. was changed to Tata Engineering & Locomotive Company Ltd. In the year 1987 the company undertook to set up a new forge shop, a high output foundry line, a new paint shop as well as augmentation of engine and gearbox manufacturing facilities, all at Jamshedpur In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher horsepower, fuel efficient diesel and petrol engines to meet the future requirements of the company. The last quarter saw the company launching two new passenger vehicles, the SIERRA and the ESTATE totally designed and manufactured in India. The company acquired a BIFR company, M/s Noduron Founders Maharashtra Ltd. The total cost for Telco worked out to Rs.18 crores as against setting up of similar critical castings foundry. During the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader. Two new models in the EX series of hydraulic excavators were launched. A 10 tonne pick and carry articulated crane, designed and developed in-house was also introduced. During the year company entered into an agreement with Nachi-Fujikoshi Corporation, Japan to manufacture arc and spot welding robots suitable for automobile manufacturing applications. During the year, company undertook to set up a joint venture with Asian Glass Co. Ltd., Japan to manufacture float glass to be used as wind shields for automobiles. ACC along with Tata Exports Ltd. participated in the joint venture. The joint venture named as Floathlass India Ltd., the Company would have a stake of 16.33%. Tata Cummins Ltd., Mercedes-Benz (India) Ltd., Tata Holset Ltd., Tata Precision Industries, Singapore and Nita Company Ltd., are the joint Ventures of the Company Taking advantage of the broad banding policy announced by the Government of India, the Company entered into a collaboration agreement with Honda Motor Co. Ltd., Japan, for the manufacture of their `ACCORD' model of cars in India. On 22nd April, an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG, Germany to setup a joint venture company Mercedez-Benz India to manufacture `E' class paneyer cans and engines in India. During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed. A new petro engine and turbo diesel engine, an up-graded 709 LCV, new sports utility vehicle Safari expected to be launched shortly. A 25 tonne 6 X 2 truck and a bus with cummins engine were launched. 26

Tata Engineering and Locomotive Company (TELCO), has acquired a second hand paint shop, machine line and cylinders from the Australian unit of the Japanese auto giant, Nissan. TELCO is believed to have picked up the unit for Rs. 70 crore. The total cost of import duty would be Rs 100 crore. During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times. The Company has launched "TATA SAFARI" in its Multi utility vehicle segment. Tata Holset's turbo charger plant inaugurated on November 25, 1996. In 1997, the Tata Engineering and Locomotive Company Ltd. (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank. The Company introduced a 9-tonne vehicle which was well received in the market. A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced. The Company developed a low floor bus chassis to meet the specific needs of urban transport. The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators. The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car "Indica" to be launched in December. Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company, Telco Construction Equipment Company Ltd. The Company in its small car segment has launched "Tata Indica" which evoked an overwhelming response in the Indian market. A new range of cummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses. To make substantial improvement in the quality of bus bodies available with TATA vehicles, the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa. The new project undertakes production of bodies on TATA chassis, conforming to the most exacting international standards. Concorde Motors Ltd., a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd. was appointed as dealer for the Company's passenger cars in several cities across the country, in Feb 1998. The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms, a year before they are due to be introduced in the country. It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery. In Oct 1999, the Company won the National award for R&D Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research, Ministry of Science and Technology for the year 1999. SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model 27

Tata Indica. 2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica, powered by a multi-point fuel injection engine. The Company launched the Indica 2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI) version of Indica. The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car. The Company has launched its new hi-tech Indica 2000 car with MPFI petro engine in Guwahati. Tata Engineering & Locomotive Co. is renamed as Tata Engineering Ltd. It replaced its threeshift production line with a one-shift daily schedule starting from 26th June. In the same year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company. The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment. TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range. In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 13.34% launches six new products in light, medium and heavy vehicles segments on Jan 15 during Auto Expo. Announces financial restructuring. Displays its Tata Sedan car at the Geneva Motor Show. Indica adjudged top selling B-segment car in 2002.Launches two new motorsport cars (The Zero and Double Zero Pace cars). High Court Approves Tata Engineering's Financial Restructuring. Tata Engg, BPCL tie up to market co-branded lubricants.Tata Steel's investment in Tata Engineering has been hiked to Rs 117.98 crore over the last year. Telco names Sedan as Tata Indigo.Unveils 'EX' series of medium and heavy commercial vehicles. Indica sales cross twolakh mark .Collaborates with Nippon-Arcelor for technical knowhow on CR steel. Receives Teri's (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable development) corporate social responsibility (CSR) awards for '01-02. Unleashes Safari's petrol version; priced at Rs 9.35 lakh. The year 2003- Tata Unveils CityRover .Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea for the acquisition of this company. It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV). The Company changed from 'TELCO ' to 'TATAMOTORS' w.e.f December 24, 2003. In the same year Tata Safari ranks No 1 in MUV/SUV segment. 2004:- The year of glory. Tata Motors launch an upgraded version Indica on January 15, 2004, in a bid to shore up sales of the small car. Auto Expo: Tata unveils new version of Indica. Tata Motors unveils Indica V2. Tata Motors launches new Indica V2 in Kerala. Tata Motors introduces new 'Indicab' for tour operators. The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned. Tata 28

Motors enters agreement with Ukraine bus building firm. Tata Motors enters into agreement with Etalon. In a move to consolidate its presence in the light commercial vehicles segment, Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX. Tata Motors buys Daewoo truck unit for Rs 465 crore. Tata Motors unveils Tata SFC 407 EX. Tata Motors inks agreement with Austrian, French companies. Acquires Daewoo Commercial Vehicle Company Ltd (DWCV), Korea. Tata Motors launches most anticipated new 6-tn truck in India. Tata Motors, the country's largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu. Tata Motors and Tata Africa unveiled a range of passenger cars, utility vehicles, pick-ups, trucks and buses for the South African market. Tata Motors has launched a face lifted version of its multiutility vehicle, Tata Sumo. Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle. Tata Motors unveils Tata Safari DICOR in Kerala market on August 11, 2005. Tata Motors rolls out 2 luxury variants of Indigo. Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 4.10 lakh for DLG variant and Rs 4.31 lakh for DLX. Tata Motors ropes in CVTech to make parts for its small car. Tata Daewoo inks pact with Pakistan co. Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007. Tata Motors buys Nissan facility in S. Africa. Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC, CNG-propelled buses. Tata Motors Ltd has appointed Mr. P M Telang as Executive Director (Commercial Vehicles).

29

Various Products of TATA Motors [1] Passenger cars and utility vehicles

Tata Indigo SW Tata Sierra Tata Estate Tata Sumo/ Spacio Tata Safari Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT Tata Xover (2009)

[2] Concept vehicles 30

Tata Cliffrider 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima

31

[3] Commercial vehicles

Tata 1616 Starbus

Tata Marcopolo Buses in the Delhi BRT

Tata Star Bus in Nagpur, Maharashtra. Tata Low Floor Buses are also used by administrations in Delhi, Mumbai, Pune, Udaipur and Indore Tata Ace Tata TL/ Telcoline /207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1510/1512 (Medium bus) Tata 1610/1616 (Heavy bus) 32

Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Starbus (Medium Bus) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4) Tata Novus (Heavy truck designed by Tata Daewoo)

[4] Military vehicles

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 T 33

34

Price List

Sl. N O.

MODEL

Ex SHOWROOM PRICE

INSURAN CE

RERISTRATI ON

ANTIRU ST

EXT. W

ON ROAD PRICE

INDICA (XTRA PETROL )

1

GL

277941

9711

11200

2800

3800

305452

2

GLE

304587

10364

12138

2800

3800

333689

3

GLS

322629

10807

12678

2800

3800

352714

4

XETA GLS SPORTY

322628

10807

12216

2800

3800

352251

INDICA DIESEL 1

DL

339071

10820

12695

2800

3800

369186

2

DLE

361397

11757

13842

2800

3800

393596

3

DLS

384046

12313

14521

2800

3800

417480

4

DICOR DLG

432331

13496

15970

2800

3800

468397

INDIGO DIESEL 1

CS LE

427290

13373

15818

2800

3800

463081

2

CS LS

455172

14057

16655

2800

3800

492484

3

CS LX

478619

14631

17358

2800

3800

517208

4

CS LS DICOR

489594

14901

17687

2800

3800

528782

5

CS LX DICOR

508066

15353

18241

2800

3800

548260

6

CS LX TDI LTD. EDI.

507307

15335

18219

2800

3800

547461

7

LS TC

530316

15899

18909

2800

3800

571724

8

LX TC

569164

16852

20074

2800

3800

612690

9

LS DICOR

549300

16365

19479

2800

3800

591744

10

LX DICOR

611409

17887

21342

2800

3800

657238

11

GLASSIC DICOR

644610

18701

22338

2800

3800

692249

12

GRAND DICOR

764647

21645

25939

2800

3800

818831

13

INDIGO XL TDI

548954

16356

19468

2800

3800

591378

35

INDIGO PETROL GS GLE

389961

12458

14698

2800

3800

423717

CS GLS

408404

12910

15252

2800

3800

443166

CS GLX

426094

13344

15782

2800

3800

461820

CS GLX LTD EDI

454782

14055

16644

2800

3800

492081

GLS

493257

14990

18271

2800

3800

533118

GLX

527028

15818

18810

2800

3800

568256

CLASSIC

0

0

0

0

0

GRAND

0

0

0

0

0

MARINA DIESEL VS

500077

15158

17715

2800

3800

0

LS

530316

16260

18690

2800

3800

571866

LX

569164

17247

19875

2800

3800

612886

LX DICOR

611409

18476

21350

2800

3800

657835

MARINA PETROL

GLS

493257

15112

2800

3800

532279

GLX

527028

15980

2800

3800

567958

INDICA VISTA (DIESAL) TERRA TDI

395513

12594

14865

2800

3800

429572

AQUA TDI

417487

13133

15524

2800

3800

452744

TERRA QUDRAJET

440992

13709

16229

2800

4425

478155

VISTA AURA Q. PLUS VISTA AURA Q. ABS

550317

16389

19500

0

0

586206

518793

15616

18560

0

0

552969

AQUA QUDRAJET

463748

14268

16913

2800

4725

502454

AQUA QUDRAJET(P.W) AURA QUDRAJET LTD. AURA QUDRAJET(P.W)

466805

14342

17005

2800

4725

505677

524506

15757

18735

2800

4725

566523

499436

15142

17983

2800

4725

540086

36

AURA QUDRAJET

46379

15067

15067

2800

4725

84038

INDICA VISTA (PETROL) TERRA SAFARI

361640

11764

13850

2800

4725

394779

VISTA AURA SAFARI

466767

14341

17004

2800

4725

505637

VISTA AURA SAFARI ABS AURA SAFARI

434462

13549

18034

2800

4725

473570

387481

12397

14624

2800

4725

422027

AQUA SAFARI

412050

12999

15361

2800

4725

447935

AURA SAFARI P.W LTD

439537

13673

16186

2800

4725

476921

MANZA PETROL AQUA SAFIRE

496109

15060

17883

2800

531852

AURA SAFIRE

530675

15908

18920

2800

568303

AURA ABS SAFIRE

555125

16507

19653

2800

594085

AURA + SAFIRE

604587

17720

21137

2800

646244

MANZA DIESAL AQUA QUADRAJET

584916

17238

20548

2800

625502

AURA QUADRAJET

613748

17945

21412

2800

655905

AURA ABS QUADRAJET AURA+ QUADRAJET

648513

18797

22455

2800

692565

689180

19794

23675

2800

735449

37

1.3 Growth of the organization The Tata Motors Group global sales, comprising of Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with distributed brands in India, and Jaguar and Land Rover, were 101,712 nos. in March 2010, a growth of 39% over March 2009. Cumulative sales for the fiscal (April 2009 – March 2010) are 872,951 higher by 19% compared to the corresponding period in 2008-09. Sales of all commercial vehicles were 47,936 nos. in March 2010, a growth of 53%. Cumulative sales for the fiscal are 413,057 nos., a growth of 37%. Sales of all passenger vehicles were 53,776 nos. in March 2010, a growth of 28%. Cumulative sales for the fiscal are 459,894 nos., a growth of 6%. Tata passenger vehicle sales, including those distributed, were 30,238 nos. for the month, a growth of 18%. Cumulative sales for the fiscal are 265,912 nos., a growth of 24%. Jaguar Land Rover global sales in March 2010 were 23,538 vehicles, higher by 43%. Jaguar sales for the month were 4,642, higher by 8%, while Land Rover sales were 18,896, higher by 55%. Cumulative sales of Jaguar Land Rover for the fiscal are 193,982 nos., lower by 11%. Cumulative sales of Jaguar are 47,418 nos., lower by 24%, while cumulative sales of Land Rover are 146,564 nos., lower by 6%.

38

CHAPTER -2 Inter comparison in Profit & loss A/C A Profit and Loss Account is an account into which all gains and losses are collected in order to ascertain the excess of gains over the losses or vice versa. The profit the loss account start with the credit form the trading account in respect of gross profit (or debit if there is gross loss). There after , all indirect expenses and losses are debited to the profit and loss account. It means all those expenses or incomes which have not debited or credited to the trading account are debited or credited in the profit and loss account.

MAHINDRA & MAHINDRA MOTORS LTD. (Rs. Crore)

Operating Income /Sales Operating Profit /Gross Profit Net profit Earnings Before Tax Retained Earning

March 31, 2008-09 March 31, 2009-10 Incr/Decr % Incr/Decr 13081.08 18516.33 5435.25 41.55 1284.55 3016.8 1732.25 134.86 840.84 2087.75 1246.91 148.29 3807 5453.07 1646.07 43.23 3494.94 4829.32 1334.38 38.18

P & L A/C 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0

March 31, 2008-09 March 31, 2009-10

39

TATA MOTORS LTD. Rs. In crore

PARTICULARS Operating Income /Sales Operating Profit /Gross Profit Net profit Earning Before Tax Rtaind Earning

March 31, 2008- March 31, 2009% 09 10 Incr/Decr Incr/Decr 25660.67 35373.29 9712.62 37.85 1723.1 1016.55 2399.62 2053.92

4032.82 2240.08 3926.07 2934.13

2309.72 134.04 1223.53 120.36 1526.45 63.61 880.21 42.85 Base year is 2008-09

40000 35000 30000 25000 20000 15000

March 31, 2008-09

10000

March 31, 2009-10

5000 0 Operating Operating Net profit Earning Rtaind Incom Profit Before Tax Earning /Sales /Gross Profit

40

CHAPTER-3 INTRA COMPERITION PROFIT &LOSS ACCOUNT BETWEEN MAHINDRA&MAHINDRA MOTORS LTD. AND TOYOTA MOTORS LTD. Mahindra & Mahindra March 31, March 31, 2008-09 2009-10 Operating Income /Sales Operating Profit /Gross Profit Net profit Earning Before Tax Rtaind Earning

Tata Motors ltd. March 31, March 31, 2008-09 2009-10

13081.08

18516.33

25660.67

35373.29

1284.55 840.84 3807 3494.94

3016.8 2087.75 5453.07 4829.32

1723.1 1016.55 2399.62 2053.92

4032.82 2240.08 3926.07 2934.13

Profit and loss 40000 35000 30000

Mahindra & Mahindra March 31, 2008-09

25000 20000

Mahindra & Mahindra March 31, 2009-10

15000 10000

Tata Motors ltd. March 31, 2008-09

5000 0 Operating OperatingNet profit Earning Incom Profit Before /Sales /Gross Tax Profit

41

Rtaind Earning

Tata Motors ltd. March 31, 2009-10

CHAPTER-4 COMPANY BALANCE SHEET A Balance Sheet is a screen picture of the financial position of a company at a certain moment. It is a screen picture of the financial position of the business. It is a statement which reports the property owned by the enterprise and the claims of the creditor and owners against these properties. LIABILITIES: - It means the amount which the business owes to outsiders, that is, excepting the proprietors. In the words of Finny and Miller, “liability are debts, they are amounts owed to creditor.” ASSETS:- It is anything that is owned by an individual or business which can be valued in terms of money. In other words, anything which will enable the firm to get cash or a benefit in the future, is an asset.

42

MAHINDRA & MAHINDRA MOTORS LTD. LIABILITIES (Rs.Crores) Liabilities Share Capital Long Term Loan Short term Loan Total

March 31, 2009March 31,2008-09 10 5231.88 7818.56 981 602.45 3071.76 2277.7 9284 10698.71

March 31,200809

March 31, 200910

Share Capital

Share Capital

Long Term Loan

Long Term Loan

Short term Loan

Short term Loan

43

ASSETS (Rs. Crores) Assets Fixed Assets Currunt Assets Other Asset Total

March 31,2008-09 March 31, 2009-10 2315.28 2316.74 283.44 605.52 6685.92 7776.45 9284.64 10698.71

March 31, 200910

March 31,200809 Fixed Assets

Fixed Assets

Currunt Assets

Currunt Assets

Other Asset

Other Asset

44

TATA MOTORS LTD. (Rs. Crores) ASSETS ACCOUNTING DATA Total Current Assets Total Fixed Assets Other Assets Total Assets

March 31 ,2008-09 March 31, 2009-10 570.39 833.77 906.81 1107.54 65.38 83.82 1542.58 2025.13

March 31 ,200809

March 31, 200910

Total Current Assets

Total Current Assets

Total Fixed Assets

Total Fixed Assets

45

LIABILITIES (Rs.Crores) LIABILITIES ACCOUNTING DATA Total Current Liabilities Total Long-term Liabilities Shareholder's Equity Total liabilities

March 31 ,2008March 31, 2009-10 09 1,224 1,149 578 223 2,025

325 68 1,543

March 31 ,200809

March 31, 200910 Total Current Liabilities

Total Current Liabilities

Total Longterm Liabilities

Total Longterm Liabilities

Shareholder' s Equity

Shareholder' s Equity

46

CHAPTER -5 COMPARISON IN BALANCE SHEET Inter Comparison TATA Motors ltd.

ACCOUNTING DATA Total Current Assets Total Fixed Assets Other Assets Total Assets

ASSETS TATA Motors ltd. March 31, 2008-09 March 31, 2009-10 Incr/Decr %Incr/Decr 570.39 833.77 263.38 46.17 906.81 1107.54 200.73 22.13 65.38 83.82 18.44 28.2 1542.58 2025.13 482.55 31.28

The base year is 2008-09

2500 2000 1500 March 31, 2008-09

1000

March 31, 2009-10 500 0 Total Current Assets

Total Fixed Assets

Other Assets

47

Total Assets

LIABILITIES March 31 ,2008March 31, 2009ACCOUNTING DATA 09 10 Incr/Decr %Incr/Decr 75 6.27 Total Current Liabilities 1,149 1,224 253 77.84 Total Long-term Liabilities 325 578 155 227.94 Shareholder's Equity 68 223 1,543 2,025 482 31.23 Total liabilities The base year is 2008-09 2,500

2,000

1,500

1,000 March 31 ,2008-09 March 31, 2009-10

500

0

48

Mahindra & Mahindra Motors ltd. ASSETS

ACCOUNTING DATA Total Current Assets Total Fixed Assets Other Assets Total Assets

Mahindra & Mahindra March 31, 2008-09 March 31, 2009-10 Incr/Decr %Incr/Decr 283.44 605.52 322.08 113.63 235.28 2316.74 2081.46 884.67 6685.92 7776.45 1090.53 16.31 9284.64 10698.71 1414.07 15.23

12000 10000 8000 6000

March 31, 2008-09

4000

March 31, 2009-10

2000 0 Total Current Assets

Total Fixed Assets

Other Assets

49

Total Assets

ACCOUNTING DATA Total Current Liabilities Total Long-term Liabilities Shareholder's Equity Total liabilities

LIABILITIES March 31 ,2008March 31, 200909 10 3971.71 981 5231.88 9284

2277.7 602.45 7818.56 10698.71

Incr/Decr %Incr/Decr -1693.3 -378.55 2586.68 1414.71

12000 10000 8000 6000 4000 2000

March 31 ,2008-09

0

March 31, 2009-10

50

-42.63 -38.58 49.44 15.24

Between Mahindra & Mahindra Motors ltd. And Tata Motors ltd. ASSETS

ACCOUNTING DATA Total Current Assets

TATA Motors ltd. March 31, 2008March 31, 200909 10

Mahindra & Mahindra March 31, 2008March 31, 09 2009-10

570.39

833.77

283.44

605.52

906.81

1107.54

235.28

2316.74

65.38 1542.58

83.82 2025.13

6685.92 9284.64

7776.45 10698.71

Total Fixed Assets Other Assets Total Assets

ACCOUNTING DATA Total Current Liabilities Total Long-term Liabilities Shareholder's Equity

LIABILITIES March 31, 2009-10

March 31 ,2008-09

March 31, 2009-10

March 31, 2009-10

1,224

1,149

3971.71

2277.7

578

325

981

602.45

223

68

5231.88

7818.56

2,025

1,543

9284

10698.71

Total liabilities

51

ASSETS TATA Motors ltd.

ACCOUNTING DATA Total Current Assets Total Fixed Assets Other Assets Total Assets

March 31, 200809

Mahindra & Mahindra

March 31, 200910

March 31, 200809

March 31, 200910

570.39

833.77

283.44

605.52

906.81

1107.54

235.28

2316.74

65.38

83.82

6685.92

7776.45

1542.58

2025.13

9284.64

10698.71

12000

Rs. in Crore

10000 8000 6000

2009 2010

4000 2000 0 Mahindra

Tata Total Assets

52

LIABILITIES TATA Motors ltd.

ACCOUNTING DATA Total Current Liabilities Total Long-term Liabilities Shareholder's Equity Total liabilities

March 31, 2009-10

Mahindra & Mahindra March 31, March 31, 2009-10 2009-10

March 31 ,2008-09 1,224

1,149

3971.71

2277.7

578 223 2,025

325 68 1,543

981 5231.88 9284

602.45 7818.56 10698.71

10000 9000

Rs. in crore

8000 7000 6000 5000

2009

4000

2010

3000 2000 1000 0 Mahindra

Tata

Total Liabilities

53

BILIOGRAPHY Text Reference

Author

Double Entry Book Keeping

T.S.Grewal‟s

Accounting For Managers

J.Made Gowda

Web References   www.tata.com  www.wikipidia.org  www.ask.com

54

ANNEXURE Financial statements of MAHINDRA & MAHINDRA MOTORS LTD.

Profit loss account Mar ' 09

Mar ' 10

Income Operating income

13,081.08

18,516.33

Material consumed Manufacturing expenses

9,365.00

12,437.87

174.05

217.89

Personnel expenses

1,024.52

1,199.85

575.34

802.02

700.45

901.45

-42.83

-59.55

11,796.53

15,499.53

Operating profit

1,284.55

3,016.80

Other recurring income Adjusted PBDIT Financial expenses Depreciation

305.98 1,590.53 134.12 291.51

317.99 3,334.79 156.85 370.78

Expenses

Selling expenses Adminstrative expenses Expenses capitalized Cost of sales

Other write offs

-

-

Adjusted PBT

1,164.90

2,807.16

Tax charges Adjusted PAT Non recurring items

199.69 965.21

759 2,048.16

-173.33

-32.9 55

Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend

48.97

72.49

840.85

2,087.75

3,807.00

5,453.07

278.83

549.52

-

Dividend tax Retained earnings

33.23

74.23

3,494.94

4,829.32

Balance Sheet of Mahindra and Mahindra

in Rs. Cr.

Mar '06

Mar '07

Mar '08

Mar '09

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

233.4

238.03

239.07

272.62

282.95

Equity Share Capital

233.4

238.03

239.07

272.62

282.95

Share Application Money

0

0

0

0

8.01

Preference Share Capital

0

0

0

0

0

2,662.14

3,302.01

4,098.53

4,959.26

7,527.60

Sources Of Funds

Reserves

56

Revaluation Reserves

13.33

12.86

12.47

12.09

11.67

2,908.87

3,552.90

4,350.07

5,243.97

7,830.23

Secured Loans

216.68

106.65

617.26

981

602.45

Unsecured Loans

666.71

1,529.35

1,969.80

3,071.76

2,277.70

Total Debt

883.39

1,636.00

2,587.06

4,052.76

2,880.15

3,792.26

5,188.90

6,937.13

9,296.73

10,710.38

Mar '06

Mar '07

Mar '08

Mar '09

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Gross Block

2,859.25

3,180.57

3,552.64

4,653.66

4,866.18

Less: Accum. Depreciation

1,510.27

1,639.12

1,841.68

2,326.29

2,537.77

Net Block

1,348.98

1,541.45

1,710.96

2,327.37

2,328.41

205.46

329.72

649.94

886.96

1,374.31

1,669.09

2,237.46

4,215.06

5,786.41

6,398.02

Inventories

878.74

878.48

1,084.11

1,060.67

1,188.78

Sundry Debtors

637.97

700.89

1,004.88

1,043.65

1,258.08

Cash and Bank Balance

258.39

415.89

310.58

635.61

475.17

Networth

Total Liabilities

Application Of Funds

Capital Work in Progress Investments

57

Total Current Assets

1,775.10

1,995.26

2,399.57

2,739.93

2,922.03

Loans and Advances

558.02

1,011.50

866.19

1,402.45

2,034.47

Fixed Deposits

471.92

910.18

550.65

938.82

1,268.06

2,805.04

3,916.94

3,816.41

5,081.20

6,224.56

0

0

0

0

0

1,711.23

2,138.77

2,525.31

3,520.20

3,822.50

543.14

715.43

943.46

1,277.56

1,796.54

2,254.37

2,854.20

3,468.77

4,797.76

5,619.04

550.67

1,062.74

347.64

283.44

605.52

18.05

17.55

13.53

12.55

4.12

3,792.25

5,188.92

6,937.13

9,296.73

10,710.38

Contingent Liabilities

946.36

1,008.27

985.35

1,220.39

2,020.79

Book Value (Rs)

124.06

148.72

181.43

191.91

138.02

Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets

58

TATA MOTORS LTD.

Profit loss account Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Income Operating income

35,373.29 25,660.67 28,767.91 26,664.25 20,088.63

Expenses Material consumed

24,759.49 19,039.41 20,931.81 19,529.88 14,376.11

Manufacturing expenses

1,652.22 1,171.59 1,230.14 1,200.36 929.82

Personnel expenses

1,836.13 1,551.39 1,544.57 1,367.83 1,143.13

Selling expenses

1,583.24 1,224.15 1,179.48 1,068.56 759.54

Adminstrative expenses

2,249.92 1,867.05 1,982.79 1,488.16 1,042.52

Expenses capitalised

-740.54

Cost of sales

31,340.46 23,937.57 25,737.39 24,077.74 17,942.27

Operating profit

4,032.83 1,723.10 3,030.52 2,586.51 2,146.36

Other recurring income

402.27

Adjusted PBDIT

4,435.10 2,564.64 3,389.94 3,473.74 2,831.54

Financial expenses

1,246.25 704.92

471.56

455.75

350.24

Depreciation

1,033.87 874.54

652.31

586.29

520.94

Other write offs

144.03

64.35

85.02

73.78

Adjusted PBT

2,010.95 934.01

2,201.72 2,346.68 1,886.58

Tax charges

589.46

547.55

Adjusted PAT

1,421.49 921.51

-916.02

841.54

-1,131.40 -577.05

359.42

51.17

12.50

887.23

660.37

-308.85

685.18

524.93

1,654.17 1,686.31 1,361.65 59

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Non recurring items

818.59

Other non cash adjustments Reported net profit

79.75

374.75

227.15

167.23

15.29

-

-0.07

-

2,240.08 1,016.55 2,028.92 1,913.39 1,528.88

Earnigs before appropriation 3,926.07 2,399.62 3,042.75 2,690.15 2,094.54 Equity dividend

859.05

311.61

578.43

578.07

497.94

Preference dividend

-

-

-

-

-

Dividend tax

132.89

34.09

81.25

98.25

69.84

Retained earnings

2,934.13 2,053.92 2,383.07 2,013.83 1,526.76

60

GO

Top of Form

Get Balance Sheet for:

Bottom of Form Balance Sheet

View: Annual Data | Quarterly Data

All numbers in thousands

Period Ending

Mar 31, 2010

Mar 31, 2009

Mar 31, 2008

Assets

Current Assets

Cash And Cash Equivalents

1,413,600

450,000

373,800

246,300

16,400

19,300

Net Receivables

3,144,600

2,399,200

1,640,600

Inventory

2,465,200

2,127,800

858,100

Other Current Assets

1,068,000

710,500

219,700

Total Current Assets

8,337,700

5,703,900

3,111,500

Long Term Investments

2,441,500

2,073,900

2,563,100

Property Plant and Equipment

4,968,300

4,316,200

2,489,700

78,400

105,500

174,100

3,454,900

2,488,200

77,800

-

-

-

Short Term Investments

Goodwill

Intangible Assets

Accumulated Amortization

61

Other Assets

838,200

653,800

811,100

Deferred Long Term Asset Charges

132,300

84,300

-

20,251,300

15,425,800

9,227,300

Total Assets

Liabilities

Current Liabilities

Accounts Payable

4,141,000

3,071,700

1,482,600

Short/Current Long Term Debt

4,872,600

6,300,000

1,724,500

Other Current Liabilities

3,230,700

2,118,900

1,390,500

Total Current Liabilities

12,244,200

11,490,600

4,597,600

Long Term Debt

4,552,800

2,290,100

1,469,100

Other Liabilities

873,600

727,700

236,600

Deferred Long Term Liability Charges

303,700

154,200

152,900

Minority Interest

45,600

82,400

140,800

-

-

-

18,019,900

14,744,900

6,597,000

Negative Goodwill

Total Liabilities

Stockholders' Equity

Misc Stocks Options Warrants

-

-

-

Redeemable Preferred Stock

-

-

-

SSSSPreferred Stock

-

-

-

127,100

101,300

96,300

Common Stock

62

Retained Earnings

94,100

(552,000)

977,600

Treasury Stock

-

-

-

Capital Surplus

2,572,600

1,540,700

994,000

Other Stockholder Equity

Total Stockholder Equity

(562,400)

2,231,400

63

(409,200)

680,900

562,400

2,630,300