Thakur Institute of Management Studies & Research

PROJECT ON
(TATA MOTORS)

UNDER THE GUIDANCE OF

PROF. Patricia Lemos
(Financial Accounting for Business)

Sr.No Group Members Roll. No

1. Vaishnavi Pawar M2426133

2. Nitish Rane M2426143
3. Pratiksha Sawant M2426148
4. Shreya Sharma M2426163
5. Shreya Shetye M2426166
6. Omkar Shinde M2426167
7. Bhushan Sikchi M2426173
 TATA MOTORS

Overview:
Tata Motors Limited, a flagship company of the Tata Group, is a leading global
automobile manufacturer based in India. Established in 1945, the company has
grown to become one of the largest automotive manufacturers in the world,
producing a wide range of vehicles including passenger cars, trucks, buses, and
defence vehicles.
Vision and Mission:
Vision: Tata Motors aims to be the most trusted and innovative automotive
manufacturer, delivering superior products and services that enhance the quality
of life and contribute to the development of a sustainable future.
Mission: Tata Motors is committed to providing high-quality vehicles that meet
customer needs while focusing on:
• Innovation: Emphasizing research and development to enhance vehicle
performance, safety, and efficiency.
• Sustainability: Promoting environmentally friendly practices and aiming for
carbon neutrality by 2039.
• Customer Satisfaction: Delivering exceptional products and services to ensure
a superior ownership experience.
• Community Engagement: Contributing positively to society through various
social responsibility initiatives.
Objectives:
Tata Motors, part of the Tata Group, has several key objectives that guide its
operations and strategies:
1. Sustainable Mobility: Focus on developing eco-friendly and energy-efficient
vehicles, including electric and hybrid models, to reduce the environmental
impact.
2. Innovation and Technology: Invest in research and development to enhance
vehicle performance, safety, and customer experience through advanced
technologies.
3. Market Leadership: Strengthen its position in both domestic and international
markets by expanding its product range and improving market share.
4. Global Expansion: Increase presence in emerging markets and enhance
international partnerships to diversify revenue sources.
5. Operational Efficiency: Improve manufacturing processes and supply chain
management to enhance productivity and reduce costs
Market Presence: Tata Motors operates in over 175 countries and has
manufacturing facilities in India, the UK, South Korea, Thailand, and South
Africa. The company also has a significant presence in the electric vehicle market
with models like the Tata Nexon EV and Tata Tiago EV.
Financial Performance: Tata Motors is listed on the Bombay Stock Exchange
and the National Stock Exchange of India. The company has shown consistent
growth, driven by expanding its product portfolio and increasing market share in
emerging markets.
Corporate Social Responsibility: The company engages in various community
development initiatives, focusing on education, healthcare, and environmental
conservation. Tata Motors emphasizes ethical business practices and aims to
contribute positively to society.
 Choosing Tata Motors for Financial Analysis:
Our group selected Tata Motors for this analysis of its balance sheet and profit
and loss account because it is one of India’s most iconic and influential
companies, offering a rich example of a complex, multi-dimensional business.
Our reasons for this choice extend from its historical significance and financial
diversity to the opportunities it presents in understanding both traditional and
emerging sectors in the automotive industry.
1.Financial Complexity and Strategic Diversification
Tata Motors operates across various automotive segments, from passenger cars
and commercial vehicles to electric vehicles (EVs) and luxury automobiles
through JLR. Such diversity means its financial statements encompass a wide
range of revenue streams, cost structures, and asset categories. This complexity
provides a unique learning opportunity, as we can analyze how Tata Motors
manages diverse income sources and expenses across different sectors,
especially with its growing focus on EVs and sustainability initiatives.
2.Debt Management and Capital Structure
Tata Motors, like many large corporations, relies on both equity and debt to
finance its operations. Understanding how Tata Motors manages its debt levels,
interest obligations, and capital structure is essential, as it affects profitability,
liquidity, and long-term financial stability. By analyzing the balance sheet, we
can evaluate the company’s debt-to-equity ratio, interest expenses, and overall
financial leverage to understand its approach to balancing growth with fiscal
responsibility.
3.Exposure to Raw Material Price Volatility
The automotive industry is highly sensitive to the prices of raw materials like
steel, aluminum, and plastics, which can fluctuate due to market demand and
supply conditions. Tata Motors’ financials reveal how raw material price
volatility impacts its cost structure, profitability, and pricing strategies. This
point allows us to understand how the company manages its supply chain costs
and mitigates risks associated with raw material dependency.
4.Diverse Product Portfolio
Tata Motors operates across different vehicle segments, including passenger
cars, commercial vehicles, and luxury cars through Jaguar Land Rover (JLR).
This diversity in offerings makes Tata Motors’ financials complex and
insightful, as they cover varied cost structures, revenue streams, and
profitability metrics, allowing us to see how the company balances different
business units financially.