Professional Documents
Culture Documents
Automobile industry is one of the most building blocks of the worlds most influen
tial economies such as US and Japan. Today , the industry is among the most vibr
ant , modern,and growing markets in the world. In 2009 India emerged as Asias 4th
largest exporter of automobiles. Indian automobile industry is ranked 10th glob
ally. (2nd in two-wheelers,4th in four wheelers). The auto industry accounts for
about 5.2% of India s GDP
COST ELEMENTS
rawmaterials employeecost Prime cost powerandfuel manufacturing factory cost selling
dadminstration miscellaneousexpense Total expense 2007 19,879.56 1,367.83 21,247.3
9 327.41 872.95 22,447.75 1505.23 1051.49 25,004.47 2008 20,891.33 10,554.57 31,
445.90 325.19 904.95 32,676.04 2197.49 964.78 35,838.31 2009 18,801.37 1,551.39
20,352.76 304.94 866.65 21,524.35 1652.31 1438.89 24,615.55
PERCENTAGE CHANGE IN COST ELEMENTS 2007-08 5.08 671.6 47.93 -0.67 3.6 45.5 45.9
-8.246 43.3 2008-09 -10.0 -85.3 -35.2 -6.22 -4.23 -34.1 -24.8 49.14 -31.315
raw materials employee cost Prime cost power and fuel manufacturing factory cost
selling and administration miscellaneous expense Total expense
CONTRIBUTIONOFCOSTELEMENTSONTOTALCOST
ANALYSIS
Net sales is highest in 2008 ,which amounts to 28768 Cr. The cost incurred in 20
08 is found to be highest compared to other years, which amounts to 35838.8cr an
d Total income is 29214Cr.
INTERPRETATION
In year 2007-08 Tata motors were marked with two events.
unveiling of Tata Nano.
acquisition of Jaguar and Land Rover.
The Company recorded its highest ever sal
e of 5,85,649 vehicles and grew its turnover to Rs. 33,094 Crs. to remain as Ind
ias largest automobile company by revenue.
Interpretation
The operating income of the company showed an increasing trend over the years. It
increased from Rs 11046.30 in 2005 to Rs 20729.40 in the year 2009. The cost of s
ales increased from Rs 9476 to Rs 18825.70 from the year 2005 to 2009. The operat
ing income increased to 21.23% from the year 2005 to 2009. The net profit increas
ed to 39.3% in the year 2005-06, 22.39% in the year 2006-07, 10.84% in the year
2007-08 but it decreased to 29.59% in the year 2008-09
Ashok Leyland
Cost sheet
Particulars Raw Materials Materials consumed Power & Fuel Cost Employee Cost Oth
er Manufacturing Expenses Factory cost Administrative Expenses Cost of productio
n Selling& Distribution Expenses Cost of sales Sales Profit 2007 5,570.18 5,570.
18 45.44 480.7 41.7 6,138.02 413.1 6,551.12 170.7 6,721.82 7,358.88 637.06 % cha
nge 6.87 6.87 -0.35 28.18 37.84 8.70 -3.23 7.94 14.02 8.10 8.34 10.87 2008 5,952
.86 5,952.86 45.28 616.17 57.48 6,671.79 399.76 7,071.55 194.63 7,266.18 7,972.5
2 706.34 % change -23.49 -23.49 -15.15 -8.10 -12.49 -21.92 -83.76 -25.42 62.65 23.06 -24.09 -34.76 2009 4,554.36 4,554.36 38.42 566.26 50.3 5,209.34 64.91 5,27
4.25 316.57 5,590.82 6,051.64 460.82
HINDUSTHAN MOTORS
COST SHEET
PARTICULERS AMOUNT 07 AMOUNT 08 AMOUNT 09
SALES RAW MATERIALS PRIME COST + FACTORY O/H POWER & FUEL EMPLOYEE COST MANUFACT
URING EXP
TOTAL FACTORY COST ADMINISTRATIVE & SELLING COST MISCELLANEOUS EXPENSES COST OF
SALES
666 . 51 504.08 504 . 08 16.15 69.14 2.4
87.69 84.48 21.5 697 . 75
704 . 66 502.93 502 . 93 13.65 86.11 8.17
107.93 94.33 21.72 726 . 91
626 . 55 469.96 469 . 96 12.92 75.97 4.93
93.82 84.48 26.85 675 . 11
% CHANGES IN COST
PARTICULERS
POWER & FUEL EMPLOYEE COST MANUFACTURING EXP
2007
16.15 69.14 2 .4
% CHANGE
-15.47 24.54 240.41
2008
13.65 86.11 8.17
%CHANGE 2009
-5.34 -11.77 -39.65 12.92 75.97 4.93
TOTAL FACTORY COST
87.69
23.08
107.93
-13.07
93.82
ADMINISTRATIVE & SELLING COST MISCELLANEOUS EXPENSES
84.48
11.65
94.33
-10.44
84.48
21.5
1.02
21.72
23.61
26.85
v ThenetprofitofTatamotorswashighestintheyear2008i.e.2028.92 crore,butinth
6.55crore.
Conclusion
v
v Theprofitofthecompanydecreasedby49%intheyear2009.
ewhichwas lowerthanthatofTatamotors
ThenetprofitofMarutiS
v Intheyear2009thenetprofitofthecompanydecreasedby29.58%buton comparingthe
fitofMarutiSuzukiwas 11.9%higher.
v
v HindustanMotorsistheworstperformingcompanyshowinganegative growthintheyear
.84intheyear2009.
v OnthebasisofpasrecordsTataMotorsisthebestperformingcompanyin India.
v