PROJECT REPORT

ON STUDY OF RATIO ANALYSIS OF FINANCIAL STATEMENTS OF

TATA MOTORS
SUBMITTED TO

UNIVERSITY OF PUNE
SUBMITTED BY SHADAB AHMAD PGDFS (SEM-II) 2010-2011

MATRIX BUSINESS SCHOOL

AMBEGAON (BK)
PUNE-411041
1

ACKNOWLEDGMENT
I take this opportunity to express my feeling of gratitude towards the various authorities & persons who have inspired me for preparing & submitting this Project work as a partial fulfillment of Post Graduate Diploma in Financial Services. I express my sincere thanks & gratitude to the Director of Matrix Business School, Ambegaon, Pune, for providing excellent environment at Matrix Business School & for his valuable advice & suggestions. It has been a memorable experience for me to work on this project. I acknowledge & almighty who gave me constant support to pass the process of project work station. I express my deep gratitude & sincere thanks to those who directly or indirectly helped on this project Report

Thank You.

CERTIFICATE

This is to certify that project work entitled study of ratio analysis of financial statement of TATA Motors is a piece of work done by Mr Shadab Ahmad a student of MATRIX BUSINESS SCHOOL Ambegaon Pune, For the fulfillment of POST GRADUATE DIPLOMA IN FINANCIAL SERVICES of UNIVERSITY OF PUNE. He has successfully completed has yearlong project. He has worked under our guidance & direction. His work is to be found satisfactory in all aspect. We wish his every success in his life.

Dr. J.N. Pol Director

Mrs. Smita M. Pachare Internal guide

DECLARATION

I hereby declare that this project report entitled study of ratio analysis of financial statements of TATA motors is written & submitted by me to the University of Pune in the partial fulfillment of the requirement for the award of the Post Graduate Diploma in Financial Services. Under the guidance of Mrs. Smita M. Pachare. It is a yearlong project based on Secondary data collected from various departments, Books, Magazines, and Websites etc.

Date:

Students Name

Sign

CONTENTS
S.NO 01 02 03 04 Particulars Company Profile(TATA MOTORS) Objectives of the study & Research Methodology Data Collection Sources &research Type Introduction to Financial Statements Page.No. 06-08 09 10 11-13

05

Tools of Financial Statements Analysis

14-15

06

Ratio Analysis, its objectives &Limitations

16-18

07

Income Statement & balance Sheet for the years 2009 and 2010

21-26

08

Liquidity Ratio & Leverage Ratio

27-29

09

Activity Ratio & Profitability Ratio

30-32

10

Findings and Conclusions

33-34

11

Bibliography

35

INTRODUCTION
COMPANY PROFILE:

OBJECTIVES OF THE STUDY

The objectives of the study are (1)To know the profitability ratios and other Accounting Ratios to summarize, systemize and simplify accounting figures so that they may be properly and conveniently. (2)To analyze the financial position of the concern and provide knowledge about the financial position of the firm. (3)Accounting Ratios help the firm to take decisions as well as it provides useful information to banks, financial institutions and investors required for making investment decisions. (4)Study of Ratio Analysis helps in finding weak spots of the business if any.
(5) Study of Ratio Analysis helps in comparative study of financial Efficiency

of the firm; it facilitates comparison of accounting Ratios of different years.

Research Methodology
Research methodology is considered as the nerve of the field work or any project. Without proper well organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a box for drawing conclusion and getting result. In the words of Blankenship an Doyle, Marketing Research is the collection and implementation of that help marketing management to get products more efficiently into the heads of the customer. Marketing research encompasses all the information pertinent to this task the appropriate techniques Methodology can be: 1. "the analysis of the principles of methods, rules, and postulates employed by a discipline"; 2. "The systematic study of methods that are, can be, or have been applied within a discipline". 3. A documented process for management of projects that contains procedures, definitions and explanations of techniques used to collect, store, analyze and present information as part of a
6