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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

Chapter-1: Profile of the Company.

1-12

Chapter-2: SWOT Analysis of the Company.

13-19

Chapter-3: Analysis of Financial Reports.

20-24

BIBLIOGRAPHY

25

APPENDIX

26

LIST OF TABLES
S No

Topic

Page No

Balance Sheet.

Profit & Loss Account.

II

Cash Flow Statement.

III

Ratio Analysis.

21-24

LIST OF FIGURES
Figure No

Title

Page No

Sales figure of the company.

Certificate
I am Mr.Rohit Dhama, Roll No. 0081371907 certify that the summer training Report(BBACAM 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

10

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 %

11

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.

12

Market share and Position of the Company


S. no.

Automobile Manufacturers

Market share%

Maruti Udyog Ltd.

56

Tata Motors Ltd

19

Hyundai Motors India Ltd.

11

Honda Motors India Ltd.

5
6
7

Ford
General Motors India Ltd.
Others

3
2
5

13

PRODUCT RANGE OF THE COMPANY:Passenger cars

Indica Vista
Indica V2
Indica V2 Turbo
Indica V2 Xeta
Indica V2 Dicor

14

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

15

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)

16

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

17

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

18

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

19

RATAN TATA
(PROMOTER,CHAIRMAN EXECUTIVE-NON)

N A Soonawala

J K Setna

(PROMOTER EXECUTIVE-NON)

(NON-EXECUTIVE, INDEPENDENT)

(NON-EXECUTIVE, INDEPENDENT)

RGopalakrishnan
(PROMOTER EXECUTIVE-NON)

(MANAGING DIRECTOR)

Praveen P Kadle

V R Mehta

J J Irani
(PROMOTER EXECUTIVE-NON)

Ravi Kant

N N Wadia

(EXECUTIVE DIRECTOR)

Dr V Sumantran

(NON-EXECUTIVE, INDEPENDENT)

(EXECUTIVE DIRECTOR)

S A Naik
(NON-EXECUTIVE, INDEPENDENT)

Helmut Petri
(NON-EXECUTIVE, NONINDEPENDENT)

20

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 are1).

www.Automobileindia.com

2).

www.Tata motors.com

3).

www. linkedin.com/companies/tata-motors

21

CHAPTER 2

SWOT
ANALYSIS

STRENGTHS
22

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.

23

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.

24

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%.

25

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.

26

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.

27

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 CIIITC Sustainability Award 2006 for Signifi cant Achievement on the Journey towards
Sustainable Development
and the Golden Peacock Award for Corporate Social Responsibility.

28

CHAPTER -3

ANALYSIS OF
FINANACIAL
STATEMENTS

Ratio Analysis
29

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 %

30

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

31

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

32

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

33

SOURCES OF FUNDS
1. SHAREHOLDERS FUNDS
(a) Share Capital
(b) Reserves and Surplus

385.54

385.41

8311.98

7336.26
8697.52

2. MINORITY INTEREST

468.31

7721.67
249.96

3. LOAN FUNDS
(a) Secured

6011.87

4462.65

(b) Unsecured

5573.00

2839.25

11584.87
4. DEFERRED TAX LIABILITY (NET)

7301.90

974.45

5. TOTAL FUNDS EMPLOYED

21725.15

817.27
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
7. GOODWILL (On Consolidation)

566.16

8. INVESTMENTS

2665.83

7514.18
443.01
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


(e) Loans and Advances

3833.17

1154.27

10077.84

10248.26

19267.35

16277.92

10. CURRENT LIABILITIES AND PROVISIONS


(a) Current Liabilities
(b) Provisions

11319.19

7700.39

2325.37

1630.44

13644.56
11. NET CURRENT ASSETS

9330.83
5622.79

34

6947.09

12. MISCELLANEOUS EXPENDITURE

6.93

13. TOTAL ASSETS (NET)

21725.15

11.93
16090.80

Profit and Loss Account for the year ended March


31, 2008
35

INCOME
1. SALE OF PRODUCTS AND OTHER INCOME FROM OPERATIONS

40340.79

36922.61
LESS: EXCISE DUTY

4689.31

4561.41
3
5651.48

32361.20

2. DIVIDEND AND OTHER INCOME

267.48

153.18
3
5918.96

32514.38

EXPENDITURE
3. MANUFACTURING AND OTHER EXPENSES

32601.33

28986.71
4. EXPENDITURE TRANSFERRED TO CAPITAL AND OTHER ACCOUNTS

(1360.70)

(739.91)
3
1240.63

28246.80

PROFIT BEFORE DEPRECIATION, INTEREST, AMORTISATION AND TAX

4678.33

4267.58
5. PRODUCT DEVELOPMENT EXPENDITURE

65.95

85.02
6.
782.07

DEPRECIATION
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
3086.29

BEFORE
3088.00

10.
(851.54)

TAX

EXPENSE

(883.21)

PROFIT
2234.75

TAX

AFTER

TAX

2204.79

11. SHARE OF MINORITY INTEREST

(132.25)

(74.22)
12. SHARE OF PROFIT IN RESPECT OF INVESTMENTS IN ASSOCIATE

36

PROFIT

FOR

THE

2167.70
65.20

YEAR
2169.99

COMPANIES

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
3534.16

AVAILABLE

FOR

APPROPRIATION

3152.40

16. APPROPRIATIONS
(a) Tax on Interim Dividend by subsidiaries (including
Groups
10.89

share

of

dividend

tax)

4.56

(b)
578.43

subsidiaries

Proposed

Dividend

578.07

(c) Tax on Proposed Dividend (including


Groups
87.42

share

of

subsidiaries

dividend

tax)

105.52

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

0.07
(e)
1047.43

General
1031.63

(f
12.20

Reserve

Special

Reserve

5.26

(g) Reserve for Research and Human Resource Development

32.25

60.83
(h) Earned Surplus Reserve

1.42

(j)

Balance

1764.12

1366.46

3534.16

3152.40

carried

to

Balance

Sheet

17. EARNINGS PER SHARE


(a) Basic
56.24

Rupees
56.4

(b) Diluted
51.57

Rupees
53.54

37

Cash Flow Statement


(Rs. in crores)
2007-2008
A. Cash flow from Operating Activities

38

2006-2007

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)

Provision for inter corporate deposits (net)

1.18

(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
Tax expense

(0.24)

0.68

851.54

883.21

Interest / Dividend (net)

619.70

297.53

Gain on issue of shares by a subsidiary

(4.66)

(1.96)

(26.02)

(69.39)

0.96

0.66

Exchange difference
Amortisation of miscellaneous expenditure
Employee separation cost

4.04

4.03
2053.79

Operating Profit before working capital changes

1777.78

4221.49

3947.77

Adjustments for:
Trade and other receivables

(698.36)

Inventories

(122.85)

Trade and other payables

2916.20

Vehicle / other loans and hire purchase receivables

(787.27)
(684.01)
1267.34

2094.99

(203.94)

(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)

Loan to associates

(2758.75)

(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)

Acquisition of stake in joint venture

138.35

(442.09)

Investments others
Decrease / (Increase) in Investments in retained interests in securitisation transactions
Sale of investments in subsidiary companies

(421.68)

(18.35)

14.26

(28.66)
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

39

(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)

1138.51

861.00

62.68

15.58

Payment of premium on long term forward contracts

(3.07)

Preliminary expenses incurred

(2.71)

(685.08)

(575.39)

Increase in short term borrowings (net)


Proceeds from issue of shares to minority shareholders

Dividend paid (including Dividend Tax)


Tax paid on Interim Dividend by Subsidiaries
Dividend paid to minority shareholders
Interest paid [including discounting charges paid, Rs. 296.30 crores, (2006-07 Rs.172.27 crores)]

(4.56)

(17.08)

(7.34)

(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)

(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)

3833.17*

1154.27*

Add : Translation adjustment on opening cash and bank balance of foreign subsidiaries

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

*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

40

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.

41

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.

42