the final
TRANSCRIPT
A Project Report on the Topic of
“Study of different product and sales”
In
Submitted In Partial Fulfillment Of theRequirement of Bachelor Degree in Business Administration
(2008 – 2011)
SUBMITTED TO
TRAINING AND PLACEMENT DEPARTMENT
SUBMITTED BY
PRINCE KUMARBBA 4th SEMESTER
CONTENTS
ACKNOWLEDGEMENT
PREFACE
BRIEF PROFILE
TATA MOTORS
ADRESS & CONTACT NUMBERS
HISTORY OF COMPANY
MILESTONES
EXPANSION OF COMPANY
MANAGEMENT OF COMPANY
MARKET SHARE
DEPARTMENTS OF COMPANY
COMPANY PRODUCTS
TURNOVER
FACILITIES
TRAINING
CAREERS WITH TATA MOTORS
EXECUTIVE SELECTION SCHEME
TATA MOTORS WORKING FOR SOCIETY & EMPLOYEES
ACKNOWLEDGEMENT
A large number of individuals have contributed to project. This project is a
humble attempt to sketch done the contribution of all those persons who have
directly or indirectly given their precious time and help along with proper
guidance for making this report in the following shape.
First of all I would like to thank Mr. Amrit (Sales Manager) in TATA
MOTORS Ltd. Without whose permission project of TATA MOTORS Ltd.
would have been castle in the air.
Who always helped me and provided me relevant knowledge in the
subject to enable to prepare the project.
Lastly but not least, I pay my gratitude to my parents, family members,
friends, faculty members of Baba Farid College of Management & Technology,
Bathinda and all executives of TATA MOTORS Ltd. for their moral support
and whole hearted cooperation in drafting this report.
PREFACE
For management careers, it is very important to develop managerial skills. In
order to achieve positive and concrete results, along with theoretical concepts,
the exposure of real life situation existing in a corporate world is very much
needed. To fulfill this need, this type of practical training is required.
I underwent summer training in TATA MOTORS Ltd. located in
Bathinda. It was my fortune to get training in a very healthy company. I got
great opportunity to view the overall working of the organization. In the
coming pages, I have attempted to present a report covering different aspects of
my training.
Brief Profile
TATA MOTORS LIMITED
Tata Motors Limited
Type: Public(BSE: 500570)(NYSE: TTM) Industry: Automotive Founded: In 1945 Founder(s): JRD TataHeadquarters: Mumbai, Maharashtra, India Key people: Ratan Tata (Chairman), Ravi Kant (Vice Chairman)Carl Peter Foster (CEO), Prakash Telang MD (India Operations),Ravi Pisharody President (CVBU).Products: Automobiles & EnginesDesign Revenue: $14.250 billion (2009)Operating income: $10.40 billion (2009)Net income: $1.198 billion (2009) Total assets: $15.430 billion (2009) Total equity: $763 million (2009) Parent Tata Group Subsidiaries
Jaguar Land Rover TDCV Hispano Carrocera
Website : TataMotors.com
In the next pages we will do study about TATA MOTORS & its products, History and expansion of the company.
TATA MOTORS
Tata Motors Ltd (NSE: TATA MOTORS, BSE: 500570, NYSE: TTM) is a
multinational corporation headquartered in Mumbai, India. Part of the Tata
Group, it was formerly known as TELCO (TATA Engineering and Locomotive
Company). Tata Motors has a consolidated revenue of USD 16 billion after the
acquisition of British automotive brands Jaguar and Land Rover in 2008.
It is India's largest company in the automobile and commercial vehicle
sector with upwards of 70% cumulative market share in the domestic
commercial vehicle segment, and had a 0.81% share of the world market in
2007 according to OICA data. The OICA ranked it as the 19th largest
automaker, based on figures for 2007 and the second largest manufacturer of
commercial vehicles in the world. The company is the world’s fourth largest
truck manufacturer, and the world’s second largest bus manufacturer. In India
Tata ranks as the leader in every commercial vehicle segment, and is in the top
3 makers of passenger cars. Tata Motors is also the designer and manufacturer
of the iconic Tata Nano, which at INR 100,000 (ex-factory) or approximately
USD 2300, is the cheapest production car in the world.
Established in 1945, when the company began manufacturing
locomotives, the company manufactured its first commercial vehicle in 1954 in
a collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors is a
dual-listed company traded on both the Bombay Stock Exchange, as well as on
the New York Stock Exchange. Tata Motors in 2005, was ranked among the top
10 corporations in India with an annual revenue exceeding INR 320 billion.
In 2004 Tata Motors bought Daewoo's truck manufacturing unit, now
known as Tata Daewoo Commercial Vehicle, in South Korea. It also acquired
Hispano Carrocera SA, now a fully-owned subsidiary. In March 2008, it
acquired the Jaguar Land Rover (JLR) business from the Ford Motor Company,
which also includes the Daimler and Lanchester brands and the purchase was
completed on 2 June 2008.
Tata Motors has auto manufacturing and assembly plants in Jamshedpur,
Pantnagar, Lucknow, Ahmedabad, Sanand and Pune in India, as well as in
Argentina, South Africa and Thailand.
ADDRESS & CONTACT NUMBERS
Corporate Office:
Tata Motors LimitedInternational BusinessBlock A, Shivsagar EstateDr. Annie Besant Road, worliMumbai – 400018Contact no: 91-22-67577200Fax: 91-22-67577276
Registered office:
Tata Motors LimitedBombay House24 Homi Modi Street Mumbai - 4000
HISTORY OF THE COMPANY
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 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. In
2004 it acquired Tata Daewoo Commercial Vehicle, and in late 2005 it acquired
21% of Aragonese Hispano Carrocera giving it controlling rights of the
company. It has formed a joint venture with Marcopolo of Brazil, and
introduced low-floor buses in the Indian Market. Recently, it has acquired
British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester
brand names.
Milestones (Some important movements)
It has been a long and accelerated journey for Tata Motors, India's leading automobile manufacturer. Some significant milestones in the company's journey towards excellence and leadership.
1945 Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives and other engineering products.
1948 Steam road roller introduced in collaboration with Marshall Sons (UK).
1954 Collaboration with Daimler Benz AG, West Germany, for manufacture of medium commercial vehicles. The first vehicle rolled out within 6 months of the contract.
1959 Research and Development Centre set up at Jamshedpur.1961 Exports begin with the first truck being shipped to Ceylon, now Sri
Lanka. 1966 Setting up of the Engineering Research Centre at Pune to provide
impetus to automobile Research and Development.1971 Introduction of DI engines.1977 First commercial vehicle manufactured in Pune.1983 Manufacture of Heavy Commercial Vehicle commences. 1985 First hydraulic excavator produced with Hitachi collaboration. 1986 Production of first light commercial vehicle, Tata 407,
indigenously designed, followed by Tata 608. 1989 Introduction of the Tatamobile 206 - 3rd LCV model. 1991 Launch of the 1st indigenous passenger car Tata Sierra.
TAC 20 crane produced.
One millionth vehicle rolled out.1992 Launch of the Tata Estate. 1993 Joint venture agreement signed with Cummins Engine Co. Inc. for
the manufacture of high horsepower and emission friendly diesel engines.
1994 Launch of Tata Sumo - the multi utility vehicle. Launch of LPT 709 - a full forward control, light commercial
vehicle. Joint venture agreement signed with M/s Daimler - Benz /
Mercedes - Benz for manufacture of Mercedes Benz passenger cars in India.
Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing turbochargers to be used on Cummins engines.
1995 Mercedes Benz car E220 launched.1996 Tata Sumo deluxe launched.1997 Tata Sierra Turbo launched.
100,000th Tata Sumo rolled out.1998 Tata Safari - India's first sports utility vehicle launched.
2 millionth vehicle rolled out.
Indica, India's first fully indigenous passenger car launched. 1999 115,000 bookings for Indica registered against full payment within
a week.
Commercial production of Indica commences in full swing.
EXPANSION OF THE COMPANY
The FIRST generation Tata Indica V2's excellent fuel economy, powerful
engine and aggressive marketing strategy made it one of the best selling cars in
the history of the Indian automobile industry.
After years of dominating the commercial vehicle market in India, Tata Motors
entered the passenger vehicle market in 1991 by launching the Tata Sierra, a
multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992,
a stationwagon design based on the earlier 'TataMobile' (1989), a light
commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's
first sports utility vehicle). Tata launched the Indica in 1998, the first fully
indigenous passenger car of India. Though the car was initially panned by auto-
analysts, the car's excellent fuel economy, powerful engine and aggressive
marketing strategy made it one of the best selling cars in the history of the
Indian automobile industry. A newer version of the car, named Indica V2, was a
major improvement over the previous version and quickly became a mass-
favourite. Tata Motors also successfully exported large quantities of the car to
South Africa.The success of Indica in many ways marked the rise of Tata
Motors.
Management of the Company
Board of Directors
Mr. Ratan N Tata (Chairman)
Mr. Ravi Kant
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. Ranendra Sen
Mr. Carl-Peter Forster
Mr. P M Telang
Senior Management
Mr. Carl-Peter Forster
Chief Executive Officer & Managing Director
Mr. P M Telang Managing Director-India Operations
Mr. C Ramakrishnan
Chief Financial Officer
Mr. R Pisharody President (Commercial Vehicles Business Unit)
Mr. T Leverton Head, Advanced and Product Engineering
Mr. S N Ambardekar
Sr. Vice President (Manufacturing Operations-CVBU)
Mr. S Krishnan Sr. Vice President (Commercial-PCBU)
Mr. P Y GuravSr. Vice President (Corp. Finance-Accounts and Taxation)
Mr. Prabir Jha Sr. Vice President, Human Resources
Mr. S B Head (Jamshedpur - Plant)
Borwankar
Mr. Vikram Sinha Head (Car Plant - PCBU)
Mr. B B Parekh Chief (Strategic Sourcing)
Mr. U K Mishra Vice President (ADD and Materials - CVBU)
Mr. A A Gajendragadkar
Vice President (Corp. Finance-Business Planning)
Mr. N Pinge Chief Internal Auditor
Mr. R Bagga Vice President (Legal)
Mr. R Ramakrishnan
Vice President - Sales & Marketing(CVBU)
Mr. S Ravishankar Vice President (Engg. Systems, ERC)
Mr. Girish Wagh Head (Small Car Project)
Company Secretary
Mr. H K Sethna
Corporate Communications
Mr. Debasis Ray Head - Corporate Communications
VEHICLE SALES AND MARKET SHARES The Company recorded a sale of 633,862 vehicles in 2009-10, a growth of 34% over previous year (472,885 vehicles) in the domestic market in India,
representing a 25.5% share in the industry (improving from 24.4% share in the previous year).
Commercial vehicle sales were highest ever at 373,842 vehicles achieving a robust growth of 40.9% over previous year and a market share of 64.2% (a gain of 0.4%, over previous year). A strong product portfolio, successful launch of new products and variants, extensive efforts in marketing and finance enablement for customers and leadership in market research and penetration, contributed to the significant improvement in overall performance. Some of the key highlights were:- - a market share improvement to 63.3% (from 61.9% in the previous year); launch of the next generation of heavy trucks - Prima range; completion of delivery of 1,625 low entry buses to Delhi Transport Corporation and delivery of major portion of the orders of over 5,000 buses underJnNURM Scheme of Government of India for modernizing the public transport in India. Passenger vehicle sales were 260,020 vehicles, highest ever, achieving a growth of 25.3% over previous year and a market share of 13.7% (stable compared to 13.6% in the previous year). The Company continues to be amongst the top three players in the passenger vehicle market which has over 25 players. The growing sales of the new generation Indica Vista and successful launch and market response for the Indigo Manza mainly contributed to the growth. Some of the key highlights were: - In the Small Car segment, increase in market share to 13.3% (as against 12.7%, in the previous year), with the growing sales of Indica Vista, sales of the Nano and the Fiat Punto; - Commencement of sales of Nano in July 2009 and completing deliveries of 30,763 cars to the customers and commencement of trial production in the Sanand plant. - The Indigo range sales of 54,551 units, a growth of 10.9% over the previous year and also the highest ever sales by the Company in this range, mainly due to the launch of the Indigo Manza in October 2009. - Sale of 33,507 Multi-Utility Vehicles (MUVs), a decline of 14.7% against the last year and as a result the market share dropped to 12.4%. The Grande Mk II which was launched in December 2009 has been well accepted in the market and is expected to help in regaining market share in the UV segment.
- Sale of 24,884 Fiat cars which has given Fiat a 1.3% market share as against 0.5% in the previous year with Linea sales at 11,102 nos. (a segment share of 10.1%) and the Grande Punto sales at 13,281 (a segment share of 3.5%). - The Company sold 225 Jaguar and Land Rover vehicles through its exclusive dealerships in India in the first year of the sales of the Jaguar Land Rover brands. The Company’s international business remained affected by the economic downturn in many of the key markets. The Company’s commercial vehicle exports grew moderately by 4.7% to 27,878 vehicles and passenger vehicles exports declined by 9.9% to 6,231 vehicles. With improved economic outlook and market recovery and with the new product range, the Company expects significant improvement in its international business in the future. Tata Motors’ Group sales were 880,396 vehicles across its entire range of products and markets. The key highlights were: - The Company has sold 667,971 vehicles. - Jaguar Land Rover achieved sale of 193,982 vehicles as compared to 167,348 vehicles in 2008-09 (in 10 months since Tata Motors acquisition of the business in June 2008). - In South Korea, Tata Daewoo Commercial Vehicle Company Limited (TDCV) successfully launched the new premium truck platform – Prima; TDCV sales were stagnant at 9,011 vehicles in Korea and international markets as compared to 9,137 vehicles in the previous year. - In Thailand, Tata Motors (Thailand) Limited saw a very good response to the CNG version of the Tata Pick-up vehicle – Xenon.
Departments of the company
Finance Department
Accounting Policy Year : Mar '10
(a) Basis of preparation
The financial statements are prepared under the historical cost convention on an
accrual basis of accounting in accordance with the generally accepted
accounting principles, Accounting Standards notified under Section 211 (3C) of
the Companies Act, 1956 and the relevant provisions thereof.
(b) Use of estimates
The preparation of financial statements requires management to make
judgments, estimates and assumptions, that affect the application of accounting
policies and the reported amounts of assets and liabilities and disclosures of
contingent liabilities at the date of these financial statements and the reported
amounts of revenues and expenses for the years presented. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the year in which
the estimate is revised and future years affected.
(c) Revenue Recognition
The Company recognizes revenue on the sale of products, net of discounts,
when the products are delivered to the dealer / customer or when delivered to
the carrier for export sales, which is when risks and rewards of ownership pass
to the dealer / customer. Sales include income from services, transfer of
technology relating to automotive products and exchange fluctuations relating
to export receivables. Sales include export and other recurring and non-
recurring incentives from the Government at the national and state levels. Sale
of products is presented gross of excise duty where applicable, and net of other
indirect taxes.
Revenues are recognized when collectibles of the resulting receivables is
reasonably assured.
Dividend from investments is recognized when the right to receive the payment
is established and when no significant uncertainty as to measurability or
collectability exists. Interest income is recognized on the time basis determined
by the amount outstanding and the rate applicable and where no significant
uncertainty as to measurability or collectability exists.
(d) Depreciation and Amortization
(i) Depreciation is provided on straight line method (SLM), at the
rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956 except in the case of :
o Leasehold Land – amortised over the period of the lease
o Technical Know-how – at 16.67% (SLM)
o Laptops – at 23.75% (SLM)
o Cars – at 23.75% (SLM)
Assets acquired prior to April 1, 1975 – on Written Down Value basis
at rates specified in Schedule XIV to the Companies Act, 1956.
Software in excess of Rs. 25,000 is amortised over a period of sixty
months or on the basis of estimated useful life whichever is lower.
- Assets taken on lease are amortised over the period of lease.
(ii) Product development cost are amortised over a period of 36 months to 120
months or on the basis of actual production to planned production volume over
such period.
(iii) In respect of assets whose useful life has been revised, the unamortised
depreciable amount has been charged over the revised remaining useful life.
(iv) Depreciation is not recorded on capital work-in-progress until construction
and installation are complete and asset is ready for its intended use. Capital
work-in-progress includes capital advances.
(e) Fixed Assets
(i) Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation / amortization.
(ii) The product development cost incurred on new vehicle platform, engines,
transmission and new products are recognised as fixed assets, when feasibility
has been established, the Company has committed technical, financial and other
resources to complete the developmentand it is probable that asset will generate
probable future benefits.
(iii) Cost includes purchase price, taxes and duties, labour cost and directly
attributable costs for self constructed assets and other direct costs incurred upto
the date the asset is ready for its intended use. Borrowing cost incurred for
qualifying assets is capitalised up to the date the asset is ready for intended use,
based on borrowings incurred specifically for financing the asset or the
weighted average rate of all other borrowings, if no specific borrowings have
been incurred for the asset. The cost of acquisition is further adjusted for
exchange differences relating to long term foreign currency borrowings
attributable to the acquisition of depreciable asset w.e.f. April 1, 2007.
(iv) Software not exceeding Rs. 25,000 and product development costs relating
to minor product enhancements, facelifts and upgrades are charged off to the
Profit and Loss Account as and when incurred.
(f ) Impairment
At each balance sheet date, the Company assesses whether there is any
indication that the fixed assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment, if any. Where it is not possible to
estimate the recoverable amount of individual asset, the Company estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
As per the assessment conducted by the Company at March 31, 2010, there
were no indications that the fixed assets have suffered an impairment loss.
(g) Leases
(i) Finance Lease
Assets acquired under finance leases are recognised at the lower of the fair
value of the leased assets at inception and the present value of minimum lease
payments. Lease payments are apportioned between the finance charge and the
outstanding liability. The finance charge is allocated to periods during the lease
term at a constant periodic rate of interest on the remaining balance of the
liability. Assets given under finance leases are recognised as receivables at an
amount equal to the net investment in the lease and the finance income is based
on a constant rate of return on the outstanding net investment.
(ii) Operating Lease
Leases other than finance lease, are operating leases, and the leased assets are
not recognised on the Company’s balance sheet. Payments under operating
leases are recognised in the Profit and Loss Account on a straight-line basis
over the term of the lease.
(h) Transactions in Foreign Currencies and Accounting of Derivatives
(i) Exchange differences
Transactions in foreign currencies are recorded at the exchange rates prevailing
on the date of the transaction. Foreign currency monetary assets and liabilities
are translated at year end exchange rates.
(1) Exchange differences arising on settlement of transactions and translation
of monetary items other than those covered by (2) below are recognized as
income or expense in the year in which they arise. Exchange differences
considered as borrowing cost are capitalized to the extent these relate to the
acquisition / construction of qualifying assets and the balance amount is
recognized in the Profit & Loss Account.
(2) Exchange differences relating to long term foreign currency monetary
assets / liabilities are accounted for with effect from April 1, 2007 in the
following manner:
- Differences relating to borrowings attributable to the acquisition of
the depreciable capital asset are added to / deducted from the cost of
such capital assets.
- Other differences are accumulated in Foreign Currency Monetary Item
Translation Difference Account, to be amortized over the period, beginning
April 1, 2007 or date of inception of such item, as applicable, and ending on
March 31, 2011 or the date of its maturity, whichever is earlier.
(ii) Hedge Accounting
The Company uses foreign currency forward contracts to hedge its risks
associated with foreign currency fluctuations relating to highly probable
forecast transactions. With effect from April 1, 2008, the Company designates
such forward contracts in a cash flow hedging relationship by applying the
hedge accounting principles set out in Accounting Standard 30- Financial
Instruments: Recognition and Measurement.
These forward contracts are stated at fair value at each reporting date. Changes
in the fair value of these forward contracts that are designated and effective as
hedges of future cash flows are recognized directly in Hedging Reserve
Account under Reserves and Surplus, net of applicable deferred income taxes
and the ineffective portion is recognised immediately in the Profit and Loss
Account.
Amounts accumulated in Hedging Reserve Account are reclassified to profit
and loss in the same periods during which the forecasted transaction affects
profit and loss.
Hedge accounting is discontinued when the hedging instrument expires or is
sold, terminated, or exercised, or no longer qualifies for hedge accounting. For
forecasted transactions, any cumulative gain or loss on the hedging instrument
recognised in Hedging Reserve Account is retained there until the forecasted
transaction occurs. If the forecasted transaction is no longer expected to occur,
the net cumulative gain or loss recognised in Hedging Reserve Account is
immediately transferred to the Profit and Loss Account.
(i) Product Warranty Expenses
The estimated liability for product warranties is recorded when products are
sold. These estimates are established using historical information on the nature,
frequency and average cost of warranty claims and management estimates
regarding possible future incidence based on corrective actions on product
failures. The timing of outflows will vary as and when warranty claim will
arise - being typically upto three years.
(j) Income on Vehicle Loan / Hire-Purchase Income / Finance Income from
Lease
Interest income from hire purchase and loan contracts and finance income in
respect of vehicles are accounted for by using the Internal Rate of Return
method. Consequently, a constant rate of return on the net outstanding amount
is accrued over the period of contract. The
Company provides an allowance for hire purchase and loan receivables that
are in arrears for more than 11 months, to the extent of an amount equivalent to
the outstanding principal and amounts due but unpaid, considering probable
inherent loss including estimated realization based on past performance trends.
In respect of loan contracts that are in arrears for more than 6 months but not
more than 11 months, allowance is provided to the extent of 10% of the
outstanding and amount due but unpaid.
(k) Inventories
Inventories are valued at the lower of cost and net realisable value. Cost of raw
materials and consumables are ascertained on a moving weighted average /
monthly moving weighted average basis. Cost, including variable and fixed
overheads, are allocated to work-in-progress and stock-in-trade determined on
full absorption cost basis. Net realisable value is estimated selling price in the
ordinary course of business less estimated cost of completion and selling
expenses.
(l) Employee Benefits
(i) Gratuity
The Company has an obligation towards gratuity, a defined benefit retirement
plan covering eligible employees. The plan provides for a lump sum payment to
vested employees at retirement, death while in employment or on termination of
employment of an amount equivalent to 15 to 30 days salary payable for each
completed year of service. Vesting occurs upon completion of five years of
service. The Company makes annual contributions to gratuity fund established
as trust. The Company accounts for the liability for gratuity benefits payable in
future based on an independent actuarial valuation.
(ii) Superannuation
The Company has two superannuation plans, a defined benefit plan and a
defined contribution plan. An eligible employee on April 1, 1996 could elect to
be a member of either plan. Employees who are members of the defined benefit
superannuation plan are entitled to benefits depending on the years of service
and salary drawn. The monthly pension benefits after retirement range from
0.75% to 2% of the annual basic salary for each year of service. The Company
accounts for the liability for superannuation benefits payable in future under the
plan based on an independent actuarial valuation.
With effect from April 1, 2003, this plan was amended and benefits earned by
covered employees have been protected as at March 31, 2003. Employees
covered by this plan are prospectively entitled to benefits computed on a basis
that ensures that the annual cost of providing the pension benefits would not
exceed 15% of salary.
The Company maintains a separate irrevocable trust for employees covered and
entitled to benefits. The Company contributes up to 15% of the eligible
employees’ salary to the trust every year. The Company recognizes such
contributions as an expense when incurred.
The Company has no further obligation beyond this contribution.
(iii) Bhavishya Kalyan Yojana (BKY)
Bhavishya Kalyan Yojana is an unfunded defined benefit plan. The benefits of
the plan include pension in certain case, payable upto the date of normal
superannuation had the employee been in service, to an eligible employee at the
time of death or permanent disablement, while in service, either as a result of an
injury or as certified by the Company’s Medical Board. The monthly payment
to dependents of the deceased / disabled employee under the plan equals 50% of
the salary drawn at the time of death or accident or a specified amount,
whichever is higher. The Company accounts for the liability for BKY benefits
payable in future based on an independent actuarial valuation.
(iv) Post-retirement Medicare Scheme
Under this scheme, employees get medical benefits subject to certain limits of
amount, periods after retirement and types of benefits, depending on their grade
and location at the time of retirement. Employees separated from the Company
as part of Early Separation Scheme, on medical grounds or due to permanent
disablement are also covered under the scheme. The liability for post-retirement
medical scheme is based on an independent actuarial valuation.
(v) Provident fund
The eligible employees of the Company are entitled to receive benefits under
the provident fund, a defined contribution plan, in which both employees and
the Company make monthly contributions at a specified percentage of the
covered employees’ salary (currently 12% of employees’ salary). The
contributions as specified under the law are paid to the provident fund and
pension fund set up as irrevocable trust by the Company or to respective
Regional Provident Fund Commissioner and the Central Provident Fund under
the State Pension scheme. The Company is generally liable for annual
contributions and any shortfall in the fund assets based on the government
specified minimum rates of return or pension and recognises such contributions
and shortfall, if any, as an expense in the year incurred.
(vi) Compensated absences
The Company provides for the encashment of leave or leave with pay subject to
certain rules. The employees are entitled to accumulate leave subject to certain
limits, for future encashment. The liability is provided based on the number of
days of unutilised leave at each balance sheet date on the basis of an
independent actuarial valuation.
(m) Investments
Long term investments are stated at cost less other than temporary diminution in
value, if any. Current investments are stated at lower of cost and fair value. Fair
value of investments in mutual funds are determined on a portfolio basis.
(n) Income Tax Expenses
Income tax expenses comprises current and deferred taxes.
Current tax is the amount of tax payable on the taxable income for the year as
determined in accordance with the provisions of the Income Tax Act, 1961.
Current tax is net of credit for entitlement for Minimum Alternative tax. Current
tax includes Fringe benefit tax, applicable upto year ending March 31, 2009.
Deferred tax is recognised, on timing differences, being the difference between
taxable income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
Deferred tax assets in respect of unabsorbed depreciation and carry forward of
losses are recognised if there is virtual certainty that there will be sufficient
future taxable income available to realise such losses.
Deferred tax assets and liabilities are measured based on the tax rates that are
expected to apply in the period when asset is realised or the liability is settled,
based on tax rates and tax laws that have been enacted or substantially enacted
by the balance sheet date.
(o) Redemption premium / discount on Foreign Currency Convertible Notes
(FCCN) / Convertible Alternative Reference Securities (CARS) / Non
Convertible Debentures (NCD) Premium payable on redemption of FCCN /
CARS / NCD as per the terms of issue, is provided fully in the year of issue by
adjusting against the Securities Premium Account (SPA). Any change in the
premium payable, consequent to conversion or exchange fluctuations is adjusted
to the SPA. Discount on redemption of FCCN, if any, will be recognised on
redemption.
(p) Business Segments
The Company is engaged mainly in the business of automobile products
consisting of all types of commercial and passenger vehicles including
financing of the vehicles sold by the Company. These, in the context of
Accounting Standard 17 on Segment Reporting, as specified in the Companies
(Accounting Standards) Rules, 2006, are considered to constitute one single
primary segment. Further, there is no reportable secondary segment i.e.
Geographical Segment.
Marketing Deprtment
Mr. R Ramakrishan is Vice President in Sales & Marketing Department. But in
Bathinda Mr. Amrit is doing work as sales Manager. He take care about sales in
Bathinda and take feedback from customers.
Manufacturing Deprtment
Tata Motors owes its leading position in the Indian automobile industry to its
strong focus on indigenisation. This focus has driven the Company to set up
world-class manufacturing units with state-of-the-art technology. Every stage of
product evolution-design, development, manufacturing, assembly and quality
control, is carried out meticulously. Our manufacturing plants are situated at
Jamshedpur in the East, Pune in the West and Lucknow in the North.
Jamshedpur:
Established in 1945, the Jamshedpur unit was the company's first unit and is
spread over an area of 822 acres. It consists of 4 major divisions - Truck
Factory, Engine Factory, Cab & Cowl Factories.
Pune:
The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and
Chinchwad (130 acres). It was established in 1966 and has a Production
Engineering Division, which has one of the most versatile tool making facilities
in the Indian sub-continent.
Lucknow:
Tata Motors Lucknow is one of the youngest production facilities among all the
Tata Motors locations and was established in 1992 to meet the demand for
Commercial Vehicles in the Indian market.
Uttarakhand:
The company has set up a plant for its mini-truck Ace and the passenger carrier
Magic (based on the Ace platform) at Pantnagar in Uttarakhand.
Sanand:
Tata Motors’ plant for the Tata Nano at Sanand, in Ahmedabad district of
Gujarat, marks the culmination of the company’s goal of making the Tata Nano
available to hundreds of thousands of families, desirous of the car a safe,
affordable and environmental friendly mode of transport. The capacity of the
plant, to begin with, will be 250,000 cars per year to be achieved in phases, and
with some balancing is expandable up to 350,000 cars per year. Provision for
further capacity expansion has also been incorporated in this location.
Now we will do study about different products of the company and its sales.
COMPANY PRODUCTS
Passenger cars and utility vehicles
Tata Xover
Tata Nano Europa
Tata Starbus Low Floor 1610
Tata Sierra (Discontinued) Tata Estate (Discontinued) Tata Sumo/Spacio Tata Safari Tata Indica Tata Vista Tata Indigo Tata Manza Tata Indigo Marina Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Aria
Concept vehicles 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Pr1ma 2010 Tata Versa 2010 Tata Essota
Commercial vehicles 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 chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1610/1623 (Rear Engined Low Floor bus chassis) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Starbus (Branded Buses for city,inter city,school bus and standard
passenger transportation) Tata Globus (Range of fully built luxury coaches) Tata Hispano Globus (Rear Engined Inter city coach) Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid
Transit and also standard passenger transportation Buses) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4) Tata Novus (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata
Daewoo)
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 TC (4x2) Tata Winger Passenger Mini Bus.
TURNOVER
Tata Motors' standalone fourth quarter net profit was almost flat from a year ago
as soaring expenditure reduced profitability despite doubling of turnover.
Its net profit for the fourth quarter ended March 2010 was Rs 597 crore (Rs
591.42 crore).
Turnover doubled to Rs 12,229.7 crore (Rs 6,894.88 crore); but expenditure too
rose as much, to Rs 11,967.19 crore (Rs 5,712.81 crore).
The company's UK subsidiary, Jaguar Land Rover, made a net profit of £73
million (Rs 496 crore) for the quarter.
In fact, the turnaround of JLR coupled with substantial volume growth in the
domestic market helped Tata Motors report a consolidated net profit of Rs 2,571
crore for 2009-10 compared with the Rs 2,505-crore net loss posted in the
previous year.
The consolidated net profit was boosted by the one-time gain of Rs 1,100 crore
from the 20 per cent stake sale in the construction equipment firm Telcon.
The Jaguar Land Rover business, which had reported a Rs 1,777-crore net loss
for June 2008-March 2009 period, made a modest profit of Rs 20.4 crore.
Tata Motors' standalone net profit for the fiscal was Rs 2,240 crore (Rs 1,001
crore).
JLR sold 1.94 lakh units for the April 2009-March 2010 period against 1.67
lakh units for the 10-month period from June 2008 to March 2009.
In the domestic market, Tata Motors' commercial vehicle sales grew by 41 per
cent to 3.74 lakh units while passenger vehicle sales were up 25 per cent at 2.6
lakh units for the fiscal.
Tata Motors' shares were up 4.72 per cent at Rs 742.90 on Thursday on the
BSE.
FACILITIES
Tata Motors provides excellent facilities for employees at plant locations.
The Township
The beautifully landscaped township covers an area of 1,200acres and has
quarters for all its employees. Civic amenities like markets, schools, a well-
equipped 500-bed hospital, dispensaries, clinics for infants, a sports stadium,
playgrounds, parks, clubs, recreation centres and hostels make the township
self-sufficient. Social organisations, drama, song and dance academies and a
hobby centre foster the spirit of creativity amongst employees and their
families.
In order to give an opportunity to employees to enhance their talents, various
societies have been setup.
TRAINING At Tata Motors, employees are invaluable assets and their career and personal
growth are of prime concern to the Company.
Tata Motors provides a congenial atmosphere to work, learn and grow. The
Company conducts various programmes to train their staff in the latest and the
best technology and management practices.
The Company through its in-house vocational training and apprenticeship
programmes trains the technicians at Tata Motors. Numerous talented
youngsters, honed by such rigorous programmes, have received numerous
National Best Apprentice Awards - the highest accolade for excellence in skills,
in India.
Tata Motors expansion projects offer numerous growth opportunities.
Structured training programmes, rotational assignments and cross-functional
mobility allow employees to grow. Movement across functions is encouraged to
help employees develop a wider perspective and gain expertise in manifold
functions.
Careers with Tata Motors Tata Motors is on the lookout for dynamic professionals who will drive the Company forward.
We offer challenging assignments in our various sectors: Commercial Vehicle Business Unit, Passenger Car Business Unit, Engineering Research Centre and Corporate Affairs.
The Company employs around 22,000 people (blue & white collared) who share a passion for automobiles.
We invite you to come and be a part of the movement, a movement that is Tata Motors.
Executive Selection Scheme (ESS
Tata Motors has always strived towards excellence both in its efforts towards
total integration as well as in recognising its talented employees. The Company
is constantly creating prestigious programmes to reward and retain its
outstanding employees. The Executive Selection Scheme is one such
programme, which is highly sought after by Tata Motors employees. It is a
matter of pride and prestige to be a part of the ESS selection process and
emerge a winner.
ESS is a fast track programme for accelerated growth of high potential
professionals. This facilitates their early advancement to challenging and visible
assignments through a very systematic procedure.
The selection involves a 3 stage process:
Written Test
Power Interview
Assessment Centre
Short-listed candidates are required to go through an interview with the
executive directors.
Candidates selected gain a huge lead in terms of promotion and learning. They
are promoted to Manager's level thereby saving almost 10 to 13 years of work
time. The successful candidates are relieved from their current jobs and put on
various project based training programmes under the guidance of senior
managers in the Company. If the candidates do not possess management
education, they undergo a 4 months MEP at IIM, Ahmedabad.
After successful completion of training the candidates are mandatorily rotated
across departments to acquire general management skills.
The ESS is a jewel in Tata Motors overall profile as it provides a platform for
every employee of the Company to perform and achieve maximum potential.
TATA MOTORS’ WORKING FOR SOCIETY & EMPLOYEES
TATA MOTORS LIMITED also do so many works for society and employees of the company.
Green Matters:
Tata Motors, a Company that cares about the future...
True to the tradition of the Tata Group, Tata Motors is committed in letter and
spirit to Corporate Social Responsibility. It is a signatory to the United Nations
Global Compact, and is engaged in community and social initiatives on labour
and environment standards in compliance with the principles of the Global
Compact. In accordance with this, it plays an active role in community
development, serving rural communities adjacent to its manufacturing
locations.
Tata Motors believes in technology for tomorrow. Our products stand
testimony to this.Our annual expenditure on R&D is approximately 2% of our
turnover. We have also set up two in-house Engineering Research Centres that
house India's only Certified Crash Test Facility. We ensure that our products
are environmentally sound in a variety of ways. These include reducing
hazardous materials in vehicle components, developing extended life
lubricants, fluids and using ozone-friendly refrigerants. Tata Motors has been
making conscious effort in the implementation of several environmentally
sensitive technologies in manufacturing processes. The Company uses some of
the world's most advanced equipment for emission check and control.
Tata Motors concern is manifested by a dual approach –
1) Reduction of environmental pollution and regular pollution control drives
2) Restoration of ecological balance.
Our endeavors towards environment protection are soil and water conservation
programmes and extensive tree plantation drives. Tata Motors is committed to
restoring and preserving environmental balance, by reducing waste and
pollutants, conserving resources and recycling materials.
Reducing Pollution:
Tata Motors has been at the forefront of the Indian automobile industry's anti-
pollution efforts by introducing cleaner engines. It is the first Indian Company
to introduce vehicles with Euro norms well ahead of the mandated dates.
Tata Motors' joint venture with Cummins Engine Company, USA, in 1992,
was a pioneering effort to introduce emission control technology for India.
Over the years, Tata Motors has also made investments in setting up of an
advanced emission-testing laboratory.
With the intention of protecting the environment, Tata Motors has upgraded
the performance of its entire range of four and six cylinder engines to meet
international emission standards. This has been accomplished with the help of
world-renowned engine consultants like Ricardo and AVL. These engines are
used in Tata Motors vehicles in the Indian market, as well as in over 70 export
markets.
Tata Motors is constantly working towards developing alternative fuel engine
technologies. It has manufactured CNG version of buses and followed it up
with a CNG version of its passenger car, the Indica.
Restoring Ecological Balance:
Tata Motors has set up effluent treatment facilities in its plants, to avoid
release of polluted water into the ecosystem. In Pune, the treated water is
conserved in lakes attracting various species of birds from around the world
thus turning the space into a green belt.
Tree plantation programmes involving villagers and Tata Motors employees,
have turned acres of barren village green. Tata Motors has planted as many as
80,000 trees in the works and the township and more than 2.4 million trees
have been planted in Jamshedpur region. Over half a million trees have been
planted in the Poona region. Tata Motors has directed all its suppliers to
package their products in alternate material instead of wood.
End of Life Vehicle Treatment and Recycling:
India is a recycling society with many people making value out the recovery of
waste materials discarded from products at the end of their useful life.
However, Europe, and some other export markets, have recognised that they
have become a 'throwaway' society in recent decades, and are now introducing
waste prevention regimes in different industry sectors to collect and recycle
valuable resource rather than it ending up in landfill.
In the Automotive sector, the European End of Life Vehicle (ELV) Directive,
points responsibility for this issue to vehicle manufacturers, and the scrap car
recovery industry. Similar regulations are being introduced in Japan and
Korea.
Naturally, Tata Motors has already met the 'producer responsibility' aspects of
the ELV Directive, such as compliance to Heavy metals and other hazardous
substance restrictions. Also, material code marking of plastic parts has been
introduced to aid achievement of demanding European recycling targets.
Central to this European regulation is for manufacturers to provide free take-
back networks for environmentally sound treatment of ELVs. Last owner
contacts for access to Tata Motors subscribed take-back schemes can be found
in: www.tatamotors.com/takeback.php
Only specially authorized vehicle dismantler and shredder operators are
allowed to treat ELVs in Europe, and they have access to Tata Motors ELV
treatment information by registering on: www.tatamotors.com/dismantlers
Community Development:
The Company's Community Service Division works through various societies
to improve the conditions of neighbouring villages - encouraging economic
independence through self-initiated cottage industries and contributing to
community and social forestry, road construction, rural health, education,
water supply and family planning.
Tata Motors has been making numerous well-planned efforts in the area of
rural development, with specific focus on the following:
Health & Sanitation:
Mobile health service staff provide preventive and curative health services
under the "Health For All" programme. They train village health workers in
conducting the same. Safe drinking water facilities are provided to ensure
health of the villagers.
Employment Generation:
Tata Motors encourages self-sufficiency with the aim to improving the
confidence, morale and lives of its employees and their dependents. The
Company has worked on some novel ideas around its townships. Employees'
relatives at Pune have been encouraged to form various industrial co-
operatives engaged in activities such as re-cycling of scrap wood into crates
and furniture, welding, steel scrap baling, battery cable assembly etc. The Tata
Motors Grihini Social Welfare Society caters to employees' women
dependents'. The women folk make a variety of products, ranging from pickles
and uniforms to electrical cable harnesses etc.
Community Centres:
These centres are situated in various parts of Jamshedpur, Pune and some of
their neighbouring towns. The centres regularly organise various programmes
& neighbouring populations are encouraged to participate in these activities.