In the modern money oriented economy, finance is one of the basic foundations of all kinds of economic activities. Finance is a scare and costly resource; so proper plan should be done to utilize its full potential. The financial plan, which is formulated, accordingly should be executed in time. An organization can only prosper when this scarce resource is most effectively used. Tata Motors has become a dominant force in the Indian Automobile Industry and business today. Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2011-12. 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. It is the world's fourth largest truck and bus manufacturer. Their dominance is predicted to grow in the future, as greater convergence and integration is achieved in Indian Economies. The growing influence of Tata Motors necessitates greater understanding of various aspects of their operations and results. The reported profitability of Tata Motors has therefore been a subject of considerable research interest in recent times. Majority of such studies have, however been based on the its operational performances. Little attention is directed to know the profitability, efficiency, liquidity, solvency position of Tata Motors. The current study examines various aspects of the reported financial performance of Tata Motors with emphasis on profitability, efficiency, liquidity and solvency position. The aim is to provide empirical evidence on the nature and magnitude of their reported financial stability and profitability Data were collected from the annual reports of Tata Motors over a five-year period 2007-2012. Statistical analyses were carried out using exploratory data analytical techniques. Exploratory research design has been used in this research. The data was collected from the annual report of TATA Motors. Tools used in this study as follows:    Ratio Analysis – 39 Ratios Standard Deviation Co-efficient of Variance

The remainder of the paper is organised as follows. Related literature is reviewed in the next section. The literature review covers theories of Tata Motors growth and development and studies of their financial performance. This is followed by a discussion of the research design and methodology including sample selection, data collection and analysis. The results of the study are then discussed. Summaries and conclusions, including potential limitations and areas for further study, are presented in the final section.

The project done for evaluating the financial performances of TATA MOTORS gives a clear idea about the Tata Motors’s financial position. The study is expected to help understanding the overall financial performance of the Tata Motors. Further, it is hoped that the suggestion made into project shall bring the attention of management. Profitability and market position of the company is good. But in case of operations, it is lacking to maintain enough current assets to settle huge current liabilities. Managing the funds involving in the operation will leads the company to shows its efficiency.

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