EXECUTIVE SUMMARYThis project makes an attempt to present the complete Financial Statement Analysis of Tata Motors for the last three consecutive years. The Macro Environment in which Tata Motors is operating and the Overall Automobile Industry has also been analyzed in detailed, to understand the external factors influencing the company. All the various financial ratios have been calculated and analyzed in length to appreciate their impact on company's performance. DuPont analysis has been done to check the credibility of company as per shareholders, financial analysts and other mutual funds.
The financial statements of last three years have been identified, studied and interpreted in light of company's performance. Capital Structure of the company, critical decisions of distributing dividends, issue of bonus debentures and other current news have been analyzed and their impact on the bottom line of the company has been assessed. Also an Inter-company Analysis has been done with Ashok Leyland and the financial ratios of both compared and analyzed in detailed. We hope that the Project is successful in its intended purpose.
ENVIRONMENTAL ANALYSISAuto policy of Government of India envisions to establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010. GOI policy has rightly recognized the need for modernizing of vehicles to arrest degradation of air quality. The terminal life policy for commercial vehicles and move toward international taxing policies linked to age of vehicles, are steps in the right direction which will lead to increased sales for TATA motors Commercial vehicle division. Effect of Government Policy on TATA Motors CV Division Commercial Vehicles segment sector has been at the forefront of the strong showing by the automotive industry over the past few years. Following factors have led to growth in sales:•The cut in excise duty that enabled manufacturers like TATA Motors to reduce prices.
•The attractive financing offers and freebies enabled by low interest rate policies by Government.
•The need to transport higher volumes of agricultural and industrial goods....