A PROJECT REPORT ON RATIO ANANLYSIS TATA COMPANY LTD.

TATA MOTORS COMPANY PREPARED:

BINAL PARMAR

CLASS: ROLL: 60

MBA SEM 1

GUIDED BY: PRIYANKA PRASAD

PREFACE:

we have to study the theoretical subject and this theoretical knowledge we have to use in the industry practically. Report is the part of our study. In module -5 we have to prepare a report, so it is a part of it. I have prepared the report of TATA MOTORS COMPANY. This report contains the true knowledge and all the aspect over gone in the practical.
DATE : - NOV. 24 2011 PLACE : - BARODA

(SIGNATURE) (BINAL PARMAR)

ACKNOWLEDGEMENT

First of all I would like to say thank you to professor PRIYANKA PRASAD for providing me such an opportunity to prepare a report.
I would like to thank my family, my friends and colleagues who constantly encouraged me to prepare report. So this project report is dedicated to all of them.

Date :NOV 24 2011 Place : BARODA (SIGNATURE) (BINAL PARMAR)

DECLARATION

I undersigned BINAL PARMAR student of PARUL INSTITUTE OF MANAGEMENT would like to declare that this project report is my own work, for the completion of this work I had taken guidance from PROFESSOR PRIYANKA MADAM.

This work has not been previously submitted to any other university for any examination. Date :NOV 24 2011 Place BARODA (SIGNATURE) (BINAL PARMAR)

INDEX

SR. NO. PARTICULARS

1. 2. 3. 4.

GENERAL INFORMATION FINANCIAL INFORMATION RATION ANALYSIS BIBLIOGRAPHY

INDEX

Sr. No.
1 2 3 4

PARTICULERS INTRODUCTION HISTORY&DEVELOPMENT PROFILE PRODUCT

INTRODUCTION

All of the company operating plantsin India have been certified OHSAS- 18001 and ISO 14001 standard and all the CVBU units have been conferred with the golden peacock oward on safety and health & environment practices . jamsedpur plant was adjudged first and was awarded by CII eastern Region in safety . Tata macro polo motors limited would be implementing IMS in both there plant 2011 2012 brief the responds to any significant incident that occure health and safety information on dedicated notice board at each sites. Tata motors group medium term goal to emerge as a leader in safety in the Indian automobile industry and the globally in the longer horizone.

HISTORY AND DEVELOPMENT

After a good year 2009 2010 during wich economics across the world shows sign of recovery , the economics condition globally continued to be strong and positive in 2010 -11 resulting in the strong growth from the automotive sector and Indian economic continued to do well driven by good performance by agriculture and the industrial sector. Tata motor group turn over of Rs52,136 crores. Tata motor group recorded highest ever consolidated profit before tax of Rs .10,437 crores.

Board of directors

DR.spelth was apponted as an additional director on nov 2010 accordance with section 260 of the company act 1956. Article of associated company m/s ravi kant, n wadia and s m palia are liable to retire and eligible for re- appointment. DR. j j irani a director nominated by tata steel limited. PRODUCT NEW PRODUCT , TECHNOLOGY AND ENVIORNMENT The companies strives to b at forfrent of innovation at work to launch products aimed at emerging needs of its customers. Jaguars advance design team and jagovar land rower technical innovation team created a concept car for the paris motor shows to celebrate 75 years to jaguar design and innovation. The resultant a stuning jaguar C-X75 ,is a radical combination of hyper car ,eco friendly car and 21st century technology which won car capturing the imagination of millons.

Meaning of Ratio Analysis:

Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm as well as its historical performance and current financial condition can be determined.

Types of Ratios:

Activity ratio Leverage ratio Activity ratio Profitability ratio

A) Current asset ratio : Current Ratio is a measure of liquidity calculated dividing the current assets by the current liabilities.

CURRENT ASSETS CURRENT LIABILITIES =35,912.O5 4,789.83 = 7.497

B)Quick ratio/acid test ratio :

The quick or acid test ratio takes into consideration the differences in the liquidity of the components of current assets.

Current Assests - Inventory Current Liablities

= 0.44
1)

Leverage ratio :

Leverage ratios measure the extent to which a firm has been financed by debt.

Leverage ratios include:

A) Total Debt Ratio B) Debt--Equity Ratio

Generally, the higher this ratio, the more risky a creditor will perceive its exposure in your business. Thus, high leverage ratios make it more difficult to obtain credit (loans).

A) Total Debt Ratio :

=2.64
B) Debt-Equity Ratio :

The Debt-Equity Ratio indicates the percentage of total funds provided by creditors versus by owners. This ratio indicates the extent to which the business relies on debt financing (creditor money versus owners equity

=0.80
Where total debt, Long term debt + short term debt + other current liabilities 2) Activity Ratio :

 These ratios evaluate the efficiency with which the firm manages and utilizes its assets. They indicate the speed with which assets are being converted or turned over into sales. Activity ratios include: Inventory Turnover Debtors Turnover Assets Turnover Working Capital Turnover

BIBILOGRAPHY: www. TATA MOTOR.in