University of Mumbai

ANNUAL REPORT
OF
TATA MOTORS

By
Ms.SAMITA SANJAY NAIK
Roll no. 42
M.Com (Part I Semester I)
Academic Year 2014-15

Project Guide
Prof. Nerulkar Madam

Parle Tilak Vidyalaya Associations

M.L.Dahanukar College of Commerce
Dixit Road, Vile Parle (E)
Mumbai - 400057

Declaration

I, MS.Samita Sanjay Naik, studying in the first year of Masters in Commerce studies course in the
academic year 2014-15 in M.L.Dahanukar College of Commerce, Vile Parle (E), hereby declare that I
have completed the project titled Management Information System as a part FINANCIAL
ACCOUNTING COURSE.

I also declare that the information presented in this is true and original to the best of my knowledge.

Date:
Place: Mumbai

Samita Sanjay Naik

Acknowledgement

I would like to express my gratitude and sincere thanks to my project guide Prof. Nerurkar madam,
M.L.Dahanukar College of Commerce for instilling confidence in me to carry out this study and
extending valuable time, without which it would have not been possible to undertake and complete
this project.

I also extend my thanks and appreciation to the library staff of my college for their kind co-operation
and support.

SR.NO

PARTICULARS

PAGE NO.

INTRODUCTION TO ANNUAL REPORT

INTRODUCTION TO TATA MOTORS

11

CORPORAT E SOCIAL RESPONSIBILITY

14

DIRECTORS REPORT

15

MANAGEMENT DISCUSSION AND

22

ANALYSIS
INDIVIDUAL AUDITORS REPORT

28

BALANCE SHEET

31

PROFIT AND LOSS ACCOUNT

32

CASH FLOW STATEMENT

33

10

NOTES FORMING FINANCIL STATEMENT

35

11

CONCLUSION

53

12

BIBLOGRAPHY

54

INDEX

What is an Annual Report?

An Annual Report is a comprehensive report on a company's activities throughout the
preceding year. Annual reports are intended to give shareholders and other interested people
information about the company's activities and financial performance. They may be considered
as grey literature. Most jurisdictions require companies to prepare and disclose annual reports, and
many require the annual report to be filed at the company's registry. Companies listed on a stock
exchange are also required to report at more frequent intervals (depending upon the rules of the stock
exchange involved).
The annual report is a document that enables small businesses with investors to report on the
operational and financial performance of the company. The U.S. Securities and Exchange
Commission publishes guidelines on content for annual reports that provides a useful template for
small businesses. Many companies take the opportunity to use the report as a marketing tool to
communicate with the media, customers and suppliers, in addition to their investors.
An annual report typically includes a balance sheet, an independent auditors report, a statement of
income and a report on company operations. Companies can expand this basic information by
including reports from senior executives, such as the chief executive officer and chief financial
officer. The report might also include a list of board members and a review of market conditions
influencing the companys results.
The letter to shareholders is a valuable introduction to an annual report, providing an overview of the
companys performance and future prospects. The letter outlines major achievements, such as market
success, launch of new products, customer wins and significant management appointments. It also
describes factors in the business environment, such as credit issues or global economic conditions
that affect company results.
Annual reports can provide a detailed review of operations, including information on production
levels, productivity initiatives, new product plans, investment programs and research and
development activities. The aim is to communicate an image of a well-managed company that is
taking steps essential to growth and stability.
5

An annual report provides a detailed account of financial performance over the previous accounting
period. It typically includes a balance sheet, income statement, cash flow statement; and equity
statement.
Information on a companys marketing strategy is an important indicator of its achievements and
future prospects. Participation in market sectors that are expanding highlights future growth
opportunities. A record of new customer wins in the previous year demonstrates growth potential,
while strong customer relationships and a low number of account losses indicate stability.
Small businesses that produce online versions of their annual report rather than printed copies can
take advantage of digital communications technology to add further valuable content to the annual
report and make it easier for readers to understand complex financial information. For example,
designers can include links to videos or audio recordings of the chief executive presenting highlights
of the report and links to more-detailed content, such as financial analysis.

Objectives of annual report

This course focuses on an analysis of the corporate annual report. It help you interpret and
understand its components, including the financial statements, footnotes, review of operations,
auditor's report, supplementary schedules, management discussion and analysis (MD&A), and
Managements Report On Internal Control Over Financial Reporting. It touches upon how the
Sarbanes-Oxley 404 reporting differs from traditional reporting. The course also teaches you how to
perform financial ratio and cash flow analyses.

Users of accounting information- Internal and external

The following are the different users of accounting information and their specific information needs.
1. Owners and investors
Stockholders of corporations need financial information to help them make decisions on what to do
with their investments (shares of stock), i.e. hold, sell, or buy more. Prospective investors need
information to assess the company's potential for success and profitability. In the same way, small
business owners need financial information to determine if the business is profitable and whether to
continue, improve or drop it.
2. Management

In small businesses, management may include the owners. In

huge organizations, however, management is usually made up
hired professionals who are entrusted with the responsibility
of operating the business or a part of the business. They act as
agents of the owners. The managers, whether owners or hired,
regularly face economic decisions How much supplies will
we purchase? Do we have enough cash? How much did we
make last year? Did we meet our targets? All those, and many
other decisions, require analysis of accounting information.

of

3. Lenders
Lenders of funds such as banks and other financial institutions are interested in the companys ability
to pay liabilities upon maturity (solvency).

4. Trade creditors or suppliers

Like lenders, trade creditors or suppliers are interested in the companys
ability to pay obligations when they become due. They are nonetheless
especially interested in the company's liquidity -- its ability to pay shortterm obligations.
5. Government
Governing bodies of the state, especially the tax authorities, are interested in an entity's financial
information for taxation and regulatory purposes. Taxes are computed based on the results of
operations and other tax bases. In general, the state would like to know how much the taxpayer is
making to determine the tax due thereon.
6. Employees
Employees are interested in the companys profitability and stability. They
are after the ability of the company to pay salaries and provide employee
benefits. They may also be interested in its financial position and
performance to assess the possibility of company expansion and career
opportunities.
7. Customers
When there is a long-term involvement or contract between the
company and its customers, the customers may be interested in
the companys ability to continue its existence and its stability
of operations. This need is also heightened in cases where the
customers depend upon the entity. For example, a distributor
(reseller), the customer in this case, is dependent upon the
manufacturing company from which it purchases the items it
resells.

8.

General Public
Anyone outside the company such as researchers, students, analysts and others are
interested in the financial statements of a company for some valid reason.

Internal and External Users

The users may be classified into internal and external users.
Internal users refer to managers who use accounting information in making decisions related to the
company's operations.
External users, on the other hand, are not involved in the operations of the company but hold some
financial interest. The external users may be classified further into users with direct financial interest
owners, investors, creditors and users with indirect financial interest government, employees,
customers and the others.

Characteristics of financial statements

Understandability. The information must be readily understandable to users of the financial
statements. This means that information must be clearly presented, with additional information
supplied in the supporting footnotes as needed to assist in clarification.
Relevance. The information must be relevant to the needs of the users, which is the case when
the information influences the economic decisions of users. This may involve reporting
particularly relevant information, or information whose omission or misstatement could influence
the economic decisions of users.
Reliability. The information must be free of material error and bias, and not misleading. Thus,
the information should faithfully represent transactions and other events, reflect the underlying
substance of events, and prudently represent estimates and uncertainties through proper
disclosure.
Comparability. The information must be comparable to the financial information presented for
other accounting periods, so that users can identify trends in the performance and financial
position of the reporting entity.

Contents of annual report

General Corporate Information

Accounting policies

Balance sheet

Cash flow statement

Contents: non-audited information

Profit and loss account

Notes to the financial statements

Chairpersons statement

Director's Report

Operating and financial review

Other features

Auditors report

10

Introduction to Tata Motors

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company) is
an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra,
India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans, coaches,
buses, construction equipment and military vehicles. It is the world's seventeenth-largest motor
vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus
manufacturer by volume.[3]
Tata Motors has auto manufacturing and assembly plants
in Jamshedpur,Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina,
South Africa, Thailand and the United Kingdom. It has research and development centres in Pune,
Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom.
Tata Motors' principal subsidiaries include the British premium car maker Jaguar Land Rover (the
maker of Jaguar, Land Rover and Range Rover cars) and the South Korean commercial vehicle
manufacturer Tata Daewoo. Tata Motors has a bus manufacturing joint venture with Marcopolo
S.A. (Tata Marcopolo), a construction equipment manufacturing joint venture with Hitachi (Tata
Hitachi Construction Machinery), and a joint venture with Fiat which manufactures automotive
components and Fiat and Tata branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first commercial
vehicle in 1954 in collaboration with Daimler AG, which ended in 1969. Tata Motors entered the
passenger vehicle market in 1991 with the launch of the Tata Sierra, becoming the first Indian
manufacturer to achieve the capability of developing a competitive indigenous automobile.[4] In 1998,
Tata launched the first fully indigenous Indian passenger car, the Indica, and in 2008 launched
the Tata Nano, the world's most affordable car. Tata Motors acquired the South Korean truck
manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover
from Ford in 2008.
Tata Motors is listed on the Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India and the New York Stock Exchange. Tata
Motors is ranked 314th in the 2012 Fortune Global 500 ranking of the world's biggest corporations.

11

12

13

Chairmans message to shareholders

CYRUS P MISTRY
Chairman
Dear Shareholders,
The global economic situation showed signs of strengthening, with US economy speeding up, but the
environment in the Eurozoneremained weak with some early signs of improvement. GDP growth in
China and India were low as compared to the high growth rates in the past. However, both these
economies continue to hold a great promise for leading global growth in future.
The global auto industry recorded a surge in sales with impressive growth, riding on the back of
strong demand in the worlds top two automobile markets China and the United States. The
automotive industry in the US came back to strength from the poor period of recession, supported by
low interest rates and improving consumer sentiment. Sales in China- the worlds largest auto market
since 2009- also crossed the 20 million cars mark. Pressure on local carmakers built up, as foreign
automakers stepped up their investments in China. Europe did show some early signs of recovery, but
with high levels of unemployment continuing to prevail in southern Europe, a clear turnaround was
not visible. Consumer behaviour in that region remains cautious.

14

Corporate Social Responsibility of Tata Motors

As a responsible corporate citizen, our Corporate Social Responsibility (CSR) Strategy
complements our business philosophy and objectives.
We have adopted the Tata Group Affirmative Action (AA) Policy attempting to voluntarily address the
prevailing social inequities in India by encouraging positive discrimination for the Scheduled Castes and
Scheduled Tribes (SC/ ST) communities. Every year, we
Participate in TAAP (Tata Affirmative Action Programmer) Assessment, developed on the lines of TBEM (Tata
Business Excellence Model).
Proximity-linked CSR investments are implemented across locations where we serve communities in the
vicinity of our manufacturing plants and office locations. We encourage collaboration with all
our stakeholders and cascade sustainable initiatives across the company ecosystem, both upstream and
downstream, including inter alia subsidiaries and associate companies, channel partners dealers and service
stations and supply chain.
UTTARAKHAND FLOOD RELIEF WORK
We contributed ` 4.5 crores towards relief and rehabilitation of those affected by flash floods in
Uttarakhand in June 2013 (comprising of matching contribution by employees and the Company) to the
Tata Relief Committee. Additionally, three
Truckloads of relief material were immediately dispatched with our employees serving as volunteers to help
500 families stranded in remote villages of Pithoragarh District in Uttarakhand.
LEARN & EARN PROGRAMME | EMPLOYABILITY
Our Learn & Earn programme aims to provide gainful livelihood opportunities to youth. Unemployed youth
typically school dropouts, undergo certified training in Motor Mechanic Vehicle (MMV) trade which
comprises of theory classes held at Technical Training Institutes coupled with practical On the Job Training
(OJT) imparted at TML Dealers/ Service Stations. The youth get to learn industry-relevant curriculum besides
earning a monthly stipend during the training period and benefit from the forward-placement linkages built
into the programme.

15

Directors report
The Directors present their Sixty-Ninth Annual Report and the Audited Financial Statement for FY 201314. As required under the Ministry of Corporate Affairs General Circular 08/2014 No. 1/19/2013-CL-V dated
April 4, 2014, the Financial Statements and other reports required to be attached to the Annual Report for FY
2013-14 are governed by the relevant provisions, schedules, rules of the Companies Act, 1956.
DIVIDEND
Considering the Companys financial performance, the Directors have recommended a dividend of
`2/- per share (100%) on the capital of 2,736,713,122 Ordinary Shares of `2/- each and `2.10 per share
(105%) on 481,966,945 A Ordinary Shares of `2/- each for FY 2013-14 (same as for FY 2012-13) and
the same will be paid on or after August 1, 2014. The said dividend, if approved by the Members, would
involve a cash outflow of `742 crores (previous year: `728 crores) including dividend distribution tax,
resulting in a payout of 222% (FY 2012-13: 241%) of the standalone profits for the year and 5% (previous
year: 7%) of the consolidated profits of the Company.
OPERATING RESULTS AND PROFITS
The Global operating environment improved considerably in FY 2013-14, as economic activity
strengthened and spending in most economies began to recover, however in a sporadic manner. Whilst the
advanced economies, particularly the US and UK, led the rebound, as growth became broader and more
entrenched, Europe saw the first tentative signs of recovery after a long and painful slowdown. Indias
economic growth rate in the current financial year remained weak at 4.7% (Previous Year: at 4.5%). The
Industrial activity remained weak and the stagnation was broad based. Mining and manufacturing output
remained negative and the economy witnessed decline in investment in new projects in line with slowdown in
overall growth. FY 2013-14 was a challenging year for the Company as the Indian economy continued to be
under severe stress.
The Tata Motors

Group

recorded

22.2%

growth

in gross turnover from `193,698

crores in the previous year to 236,626 crores in FY 2013-14. This is the highest turnover recorded by the
Group. The consolidated revenues (net of excise) for FY 2013-14 of 232,834 crores grew by 23.3%
over last year on the back of strong growth in volumes across products and markets at Jaguar Land Rover.
The consolidated EBITDA margins for FY 2013-14 stood at 16.1%. Consequently, Profit before Tax and
Profit after Tax were `18,869 crores and `13,991 crores, respectively. Tata Motors Limited recorded a gross
turnover of `37,758 crores, 23.4% l owe r fro m ` 49,320 cr ore s in t he previous ye ar . On top of a 16.7%
decline in FY 2012-13, a decline of more than 40% over a 2 year period was witnessed. Sustained
deceleration in the economic growth, high inflation, higher fuel prices, reduced availability of finance and
elevated interest rate regime continued to impact demand for the Indian auto industry in general and commercial
16

vehicle industry in particular. Additionally, the need to increase marketing expenses on account of severe
competitive intensity and depressed market scenario impacted EBITDA margins from positive 4.8% in FY 201213 to negative 1.4% for FY 2013-14. The reduction of profits from operations was offset by dividend from
subsidiary companies of `1,574 crores (including dividend from JLR) as compared to `1,584 crores for the
previous year and profit of1,966 crores on divestment of investments in certain foreign subsidiaries to TML
Holdings Pte Ltd, Singapore, a wholly owned subsidiary. Loss Before Tax and Profit After Tax for the FY
2013-14 were at `1,026 crores and `335 crores respectively, as compared to Profit Before Tax and Profit After
Tax of `175 crores and `302 crores respectively in FY 2012-13.
With the expected positive momentum in the Indian economy, the Company is focused on growth and
achieving profitability through a superior new product pipeline along with a renewed commitment to enhance
quality and customer service and to reduce costs. The Horizonext strategy unveiled in the Delhi Auto Expo
shed light on some of the new and exciting product initiatives like Zest, Bolt, improved Nano, Ultra trucks
variants on Prima truck platform and a slew of other modified and refreshed products which will be
introduced in the near future, boosting the Companys revenues. Investment in the right products and vehicle
platforms are being made to ensure a competitive pipeline for the future. Together with forward looking
product strategy, the Company is also focusing extensively on right sizing the business and operational
improvements through various strategic projects for operational excellence and cost cutting initiatives. Jaguar
Land Rover recorded a turnover of GB19,386 million, a growth of 22.8% from GB15,784 million in the
previous year. JLR had a successful year of continued growth in all markets with overall volumes up by 16%,
reflecting continued product successes including the launch of the new Range Rover Sport and Jaguar FTYPE and a full year of sales of the new Range Rover. More established models have also been performing
well, in particular derivatives such as the XF Sport brake and all-wheel drive and smaller engine options
across the range. Consolidated EBITDA for FY 2013-14 was a record GB3,393 million, an increase of 45.1%
compared to FY 2012-13. The EBITDA improvement comprises increased sales volumes and revenues, as
well as favorable product and market mix. Profit before tax (PBT) for FY 2013-14 was GB2,501 million, an
increase of GB827 million (49%) compared to FY 2012-13. In FY 2013-14, JLR incurred one off costs for
redemption of the higher coupon GB500 million and US$410 million 2018 Notes (at 8.125% and 7.75%
coupon respectively). The bond redemption was pre-financed by the successful issuances of US$700
million 4.125% 2018 Notes and GB400 million 5% 2022 Notes, to reduce the Companys overall cost of
debt in line with the improving credit. (Jaguar Land Rovers figures are as per IFRS)
Tata Motors Finance Limited, the Companys captive financing subsidiary, registered total revenues of
`3,026 crores higher by 7% of FY 2012-13 revenues and reported a Profit After Tax of `101 crores in FY
2013-14 (FY 2012-13: `309 crores). The results for the year were impacted due to tightness in the financial
market, stress in the business environment and the consequent higher provision on account of Non-Performing
17

Assets.
Tata Daewoo Commercial Vehicle Company Limited,

South Korea registered revenues of KRW

884.1 billion (`4,906 crores), a growth of 7.3% over the previous year. The positive impact of higher
volume, various cost control initiatives and price increase in export market allowed company to achieve
profit after tax of KRW 23.5 billion (`130.4 crores) [FY 2012-13: loss of KRW 9.2 billion (`45 crores)]
(TDCV Figures are as per Korean GAAP).
VEHICLE SALES AND MARKET SHARES
The Tata Motors Group sales for the year stood at 10,20546 vehicles, lower by 14.4% as compared to
FY 2012-13. Global sales of all Commercial Vehicles were 432,600 vehicles, while sales of Passenger
Vehicles were at 587,946 vehicles.
DIRECTORS
Mr. Karl Slym, who was the Managing Director of the Company since September 13, 2012, died on
January 26, 2014, in an untimely and tragic manner. Mr. Slym provided leadership in a challenging market
environment and had made a considerable positive impact on the Companys culture by spearheading
leadership and brand enhancing programs in the organization. He played a pivotal role in charting of the
Companys strategy to regain momentum for the Companys products in the Indian market. The Directors
have placed on record their profound grief on the passing away of Mr. Slym. The Board has initiated steps
for appointing a Managing Director. In the interim, the oversight of the key aspects of the Companys
operations is undertaken by a Corporate Steering Committee comprising Mr. Cyrus P Mistry as Chairman,
Executive Directors and Senior Executives of the Company.
Mr. Ravi Kant retires as the Vice Chairman of the Company on May 31, 2014 in accordance with the
Companys Policy for Retirement Age of Directors. Mr. Kant joined the Company in February 1999 and on
superannuating as the Managing Director in June 2009, continued to be on the Companys Board of Directors
as the Non- executive Vice- Chairman. Mr. Kant had by his stewardship and guidance significantly contributed
to the Companys growth and global aspirations. He has played a stellar role in the Jaguar Land Rovers
acquisition and its turnaround and guiding many of the Company's key initiatives and strategies. The Board
placed on record its appreciation for the contributions made and the role played by Mr. Kant over the last 14
years on the Board of the Company. The Company has, pursuant to the provisions of Clause 49 of the
Listing Agreements entered into with Stock Exchanges, appointed Mr. Nusli Wadia, Dr Raghunath
Mashelkar, Mr. Subodh Bhargava, Mr. Nasser Munjee, Mr. Vineshkumar Jairath and Ms Falguni Nayar as
Independent Directors of the Company. The Company has received declarations from the said Independent
Directors of the Company confirming that they meet the criteria of independence as prescribed both under subsection (6) of Section 149 of the Companies Act, 2013 and under the said Clause 49. In accordance with the
provisions of Section 149(4) and proviso to Section 152(5) of the Companies Act, 2013, these Directors are
18

being appointed as Independent Directors to hold office as per their tenure of appointment mentioned in the
Notice of the forthcoming AGM of the Company .In accordance with the requirements of the Act and the
Articles of Association of the Company, Dr Ralf Speth retires by rotation and is eligible for re-appointment.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forming part of the Directors Report and the certificate
from the Practicing Company Secretary confirming compliance of Corporate Governance norms as stipulated
in Clause 49 of the Listing Agreement with the Indian Stock Exchanges is included in the Annual Report.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
A separate section on initiatives taken by the Tata Motors Group to fulfill its Corporate Social
Responsibilities is included in the Annual Report.
STATUTORY AUDIT
M/s Deloitte Haskins & Sells LLP (DHS LLP), Chartered Accountants (ICAI Firm Registration
No.117366W/W-100018), who are the Statutory Auditors of the Company, hold office until the conclusion of
the ensuing Annual General Meeting. It is proposed to re-appoint them to examine and audit the accounts of
the Company for three years to hold office from the conclusion of this AGM till the conclusion of the
seventy-second AGM of the Company to be held in the year 2017 subject to ratification of their appointment
at every AGM. DHS have, under Section 139(1) of the Companies Act, 2013 and the Rules framed there
under furnished a certificate of their eligibility and consent for re-appointment.
DHS converted itself into a Limited Liability Partnership (LLP) under the provisions of the Limited
Liability Partnership Act, 2008 and is now known as Deloitte Haskins & Sells LLP (DHS LLP) with
effect from November 20, 2013. In terms of the Ministry of Corporate Affairs, Government of India, General
Circular No. 9/2013 dated April 30, 2013, if a firm of CAs, being an auditor in a company under the
Companies Act, 1956, is converted into an LLP, then such an LLP would be deemed to be the auditor of the
said company. The Board of Directors of the Company has taken due note of this change. Accordingly, the
audit of the Company for FY 2013-14 was conducted by DHS LLP.
COST AUDIT
As per the requirement of the Central Government an pursuant to Section 233B of the Companies Act
1956, the audit of the cost accounts pertaining to motor vehicles and other relevant products groups is carried
out every year. Pursuant to the approval of Ministry of Corporate Affairs, M/s Mani & Co. having
registration No. 00004 were appointed as the Cost Auditors for auditing the Companys cost accounts relating
to the Companys products for the year ended March 31, 2014, for which the approval of Central
Government was received on July 24, 2013.
The Cost Audit Report and Compliance Report for the year ended March 31, 2013 were filed by the Company
19

on September 25, 2013 well within the prescribed due date of September 30, 2013.
The Cost Audit Report and compliance report for the financial year ended March 31, 2014 is expected to be
filed within the prescribed time.

FIXED DEPOSITS
The Company has not accepted any public deposits during FY 2013-14
There were no over dues on accounting of principal or interest on public deposits other than the unclaimed
deposits as at the year end. The Company proposes to invite and accept Fixed Deposits from the shareholders
and the public in accordance with Sections 73 to 76 of the Companies Act 2013 read with Companies
(Acceptance of Deposits) Rules, 2014. Attention of the Members is invited to the relevant item in the
Notice of the Annual General Meeting and the Explanatory Statement thereto.

HUMAN RESOURCES
The Tata Motors Group employed 66,593 permanent employees (previous year: 62,873 employees) as
of the year end, out of which 59,535 employees were engaged in automotive operations. The Company
employed 29,566 permanent employees (previous year: 30,334 employees) as of the year end. The Tata
Motors Group has generally enjoyed cordial relations with its employees and workers.
All employees in India belonging to the operative grades are members of labour unions except at our
Sanand and Dharwad plants. All the wage agreements have been renewed in a timely manner and are
all valid and subsisting. Operatives and Unions support in implementation of reforms that impact
quality, cost erosion and improvements in productivity across all locations which is commendable.
FINANCE
During the year, the free cash flows for Tata Motors Group were 9,226 crores, post spend on
capex, design and development of 26,925 crores. Tata Motors Groups borrowing as on March 31, 2014,
stood at `60,642 crores (FY 2012-13: `53,716 crores). Cash and bank balances and investments in mutual
funds stood at `39,206 crores (FY 2012-13: `28,624 crores). With healthy profitability and cash flow
generation, the Consolidated Net Automotive Debt to Equity Ratio stood at 0.07:1 as on March 31, 2014, as
compared to 0.24:1 on March 31, 2013.
Cash flows from operations were `2,463 crores for standalone operations of the Company. Spend on capex,
design and development were `3,094 crores (net). The borrowings of the Company as on March 31, 2014 stood
at `15,053 crores (FY 2012-13 16,799 crores). Cash and bank balances and investments in mutual funds stood
at 226 crores (FY 2012-13 822 crores).During the year, the Company issued notice on April 16, 2013 to the
holders of 4% Foreign Currency Convertible Notes, giving them time till June 10, 2013, to elect at their option
20

to either convert the bond into equity or to receive redemption proceeds as per the terms of the indenture.
Consequent upon exercise of conversion option, aggregating US$74.10 million, the Company allotted
28,549,566 Ordinary Shares/ Shares represented by ADSs.
The Company issued rated, listed, unsecured, non-convertible debentures of `1,100 crores.
The Company repaid Tranche 3 of `1,800 crores of Secured, Rated, Credit Enhanced, Listed, 2% Coupon
Non-Convertible Debentures (NCDs) along with premium on redemption of `658.05 crores. Further, the
Company also repaid `362.19 crores forming part of the public fixed deposit scheme launched in December
2008.
The Company divested its investments in foreign subsidiary companies Tata Daewoo Commercial Vehicle
Co Ltd, Korea, Tata Motors (Thailand) Ltd, and Tata Motors (SA) (Proprietary) Ltd to TML Holdings Pte
Ltd, Singapore, a wholly owned subsidiary.
Due to significant reduction in volumes, the Company had to deploy short term funds to support critical long
term finance needs. The Company is in the process of taking appropriate steps to correct this and restructure
the Balance Sheet.
At Jaguar Land Rover (as per IFRS), post spend on capex, design and development of GB2,680 million
(`25,774.36 crores), the free cash flows were GB1,150 million (`11,059.90 crores) for FY 2013-14. The
borrowings of the Jaguar Land Rover as on March 31, 2014, stood at GB2,010 million (`19,330.77 crores)
[previous year: GB2,167million (`17,791 crores)]. Cash and financial deposits stood at GB3,458 million
(`33,256.62 crores) [previous year: GB2,847 m i l l i o n (`23,373 crores)] resulting in negative net debt
position. Additionally, JLR has undrawn committed long term bank lines of GB1,290 million.
In December 2013, Jaguar Land Rover issued US$700 million Senior Notes due 2018, at a coupon of
4.125% per annum, followed by an issue of GB400 million, at a coupon of 5.0% per annum in January
2014. The proceeds have been used for prepayment of high coupon Senior Notes issued in 2011 of equivalent
GB750 million which was callable in May 2014.
TML Holdings Pte Ltd, Singapore, a 100% subsidiary of the Company, holding the investment in Jaguar Land
Rover raised SG$350 million Senior Notes due 2018, in May 2013, at a coupon of 4.25% per annum
followed with an issue of syndicated loan facility of US$250 million and SG$62.8 million due 2017 and
US$210 million and SG$114 million due 2019.
Tata Motors Finance Limited raised `75 crores by an issue of unsecured, non-convertible, subordinated
perpetual debentures towards Tier 1 and Tier 2 Capital and `155.10 crores by an issue of unsecured, nonconvertible, subordinated debentures towards Tier 2 Capital in order to meet its growth strategy and improve
its Capital Adequacy ratio. Tata Motors Group has undertaken and will continue to implement suitable steps
for raising long term resources to match fund requirements and to optimize its loan maturity profile.
21

During the year, the Companys rating for foreign currency borrowings was retained with an improvement in
the outlook by Standard & Poors to BB/Stable and was retained at existing levels by Moodys at
Ba3/Stable. For borrowings in the local currency, the ratings was revised upwards by Crisil to AA/Stable
and was retained at existing levels by ICRA at AA-/Positive. Post March 31, 2014, the ratings was revised
upwards by ICRA to AA/Stable. The Non-Convertible Debentures rating by CARE was revised upwards to
AA+/Stable. During the year, Jaguar Land Rovers rating was revised upwards by Moodys to Ba2 Stable
and by Standard & Poors at BB/Stable. For Tata Motors Finance, CRISIL has revised its rating outlook on
long-term debt instruments and bank facilities to CRISIL AA/ A+/ Stable.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956 (the Act) the Directors, based on the
representation received from the Operating Management, confirm that:-in the preparation of the annual
accounts, the applicable accounting standards have been followed and that there are no material departures;
they have, in the selection of the accounting policies, consulted the Statutory Auditors and have applied them
consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial year and of the profit of the Company
for that period they have taken proper and sufficient care, to the best of their knowledge and ability, for the
maintenance of adequate accounting records in accordance with the provisions of the Act, for
safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities ;they
have prepared the annual accounts on a going concern basis.
ACKNOWLEDGEMENTS
The Directors wish to convey their appreciation to all of the Companys employees for their enormous
personal efforts as well as their collective contribution to the Companys performance. The Directors would
also like to thank the employee unions, shareholders, customers, dealers, suppliers, bankers, Government and
all the other business associates for the continuous support given by them to the Company and their
confidence in its management.

22

MANAGEMENT DISCUSSION AND ANALYSIS

Management discussion and analysis or MD&A is an integrated part of a company's annual
financial statements. The purpose of the MD&A is to provide a narrative explanation, through the
eyes of management, of how an entity has performed in the past, its financial condition, and its future
prospects. In so doing, the MD&A attempt to provide investors with complete, fair, and balanced
information to help them decide whether to invest or continue to invest in an entity.
The section contains a description of the year gone by and some of the key factors that
influenced the business of the company in that year, as well as a fair and unbiased overview of the
company's past, present, and future.
MD&A typically describes the corporation's liquidity position, capital resources, results of its
operations, underlying causes of material changes in financial statement items (such as asset
impairment and restructuring charges), events of unusual or infrequent nature (such as mergers and
acquisitions or share buybacks), positive and negative trends, effects of inflation, domestic and
international market risks, and significant uncertainties.
BUSINESS OVERVIEW
Indias GDP growth continues to remain weak, at 4.7% in FY 2013-14 (advance estimates) after growing at
4.5% in FY 2012-13. Industrial activity continues to remain weak. Index of Industrial production (IIP) was
negative at 0.1% during FY 2013-14. The stagnation in the industrial activity was broad-based. While mining
output registered a negative of 1.1%, manufacturing output registered a negative of 0.7% during the same
period. FY 2013-14 witnessed a decline in investments in new projects in line with slowdown in overall
growth.
Growth rate in GDP
FY 2012-13
Q1
4.5
Q2
4.6
Q3
4.4
Q4
4.4
4.5

FY 2013-14
4.7
5.2
4.6
4.6
4.7

23

On the back of tight monetary policy, limited Fiscal spending, rising Inflation and slowing investments, over
the previous year, FY 2013- 14 saw many of the same challenges continuing into the year.
FY 2013-14 was marked by the challenge to the Government to contain the fiscal deficit, and the Government
expenditure on infrastructure and other key sectors suffered. Current account deficit was brought in control.
As a result, the domestic auto industry saw decline after a long time. With the continued high interest rates and
inflation, households were forced to spend more on essentials and discretionary spend reduced, leading to
deferring of purchase decisions. The consistent stagnation of the industrial growth mainly in the areas of
mining and quarrying, manufacturing and infrastructure adversely impacted the domestic auto industry.
On the global economy front, it was still a struggle, with the Euro zone in recession for much of 2013.
However, in the developed world which had started as an uneven and patchy, recovery began to strengthen.
The US economy, despite having to cope with feuding over its budget, seems to have sped up. It has been
creating jobs and its housing market and stock indicator have moved up sharply. By the end of the year 2013,
the UK had become, on some counts the fastest growing large developed economy. UK labour market
conditions improved as employment increased. Rising consumer and business confidence helped to underpin
stronger retail sales and investment spending, while the recovery in house prices helped shore up household
wealth. This was led by higher consumption, in turn leading to fears of overheating in the housing market.
Germany had a solid year, reducing unemployment and boosting living standards. However, across the
Mediterranean the pattern was more disappointing, with Italy, pain, Portugal and Greece all enduring a year of
rising unemployment. Europe and the euro are not out of trouble, but the acute phase of their difficulties may
be past. However, there is still a long way to go deflation risks remain, the sovereign and banking crisis is
not fully resolved, and there is a considerable gulf in performance between the core and the periphery
INDUSTRY STRUCTURE AND DEVELOPMENTS
COMMERCIAL VEHICLES
The demand for Commercial vehicles remained depressed throughout the year. For FY 2013-14 the
Commercial vehicle industry volumes at 698,907 reflect a decline of 22.4% over FY 2012-13. The Medium
and Heavy Commercial Vehicles (M&HCV) segment recorded a further negative of 25.2% on the back of
23.3% decline in the last fiscal. The ban on mining, fleet underutilization, fall in resale value and low
economic activities contributed to the fall. However, over the last few months, the decline has slowed down
and volumes have stabilized through efforts taken by the Government to revive the sector by 4% reduction in
excise duty, partial lifting of mining bans and increase in freight rates, indicating that the economy may be
nearing the end of the down-cycle. While the M&HCV segment had declined in the last fiscal, the
contraction of the Light Commercial Vehicles (LCV) segment by 21.2% is more significant because it was
24

the growth driver in the past, growing by 17.9% in the last fiscal. The fall in this segment has been led by
the drop in the Small Commercial Vehicle (SCV) volumes where fund availability is the most critical
element. The high default rates in loans coupled with early delinquencies prompted the financiers to tighten
lending norms, reduce the Loan-to-value (LTV) ratio and go into a collection mode impacting the SCV
segment quite sharply.
The Company registered a decline of 29.5% to 377,909 units, primarily due to fall in LCV volumes coupled
with the falling demand in M&HCV. The domestic industry performance during FY 2013-14 and the
Companys market share are given below:-

Category

Industry
FY 201314

Units

Sales
FY 2012-13

Company
Growth

FY 201314

Units

Units

Sales
FY 2012-13

Market Share
Growth FY 2013-14 FY 201213

Units

M&HCV

200,424

267,983

-25.2%

109,984

142,764

-23.0%

54.9%

53.3%

LCV

498,483

632,450

-21.2%

267,925

393,468

-31.9%

53.7%

62.2%

698,907

900,433

-22.4%

377,909

536,232

-29.5%

54.1%

59.6%

Total

The Companys commercial vehicle sales in the domestic and international markets at 420,992 units
were 27.5% lower than the previous year.
Even under these difficult conditions, the Company has been able to gain market share in the critical
M&HCV segment. The Company has been focusing intensely on market and customer activities to stimulate
the buying sentiments. Activities included the Prima Truck Racing Championship event in March, 2014 the first
of its kind initiative in the Indian trucking history. The Prima LX series of trucks a combination of economy
&technology -were launched in FY2013- 14 which included 2523T, 3123T, 4028S (Single reduction and Hub
reduction) and 4928S (Single reduction and Hub reduction), 4923.S LX, Prima 4938 Tractor, 3138K Tipper,
LPT 3723 - Indias first 5 axle truck and LPK 3118, and Prima LX series of Tippers 2523K, 3123K, 2528K
& 3128K. One of the successful marketing initiatives was the Power of Five campaign for M&HCV trucks
which was conducted across various locations across the country to counter competition. The campaign
focuses on five advantages of the Companys vehicles 1) Better KMPL, 2) Best Vehicle Uptime 3) Highest
Resale Value, 4) Best in class four year warranty, 5) Lowest maintenance cost and five powerful offerings
i) Triple benefit insurance, ii) Increased Oil change interval, iii) 4 Year AMC, iv) Tata Alert, v) Fleetman.
The bus segment also witnessed growth in market share for the Company, due to intensive sales efforts
coupled with launch of buses with mechanical FIP, introduction of Starbus Ultra in Stage carriage, marketing
25

initiatives such as Humare Bus Ki Baat Hain and Dream it to win it program. The warranty for M&HCV
buses and trucks were increased to three years and four years respectively symbolizing improvement

in

quality. The Tata Alert service, to return a vehicle back on road within 48 hours, has been expanded
across all national highways.
The Company registered a decline in the market share of LCV segment due to the sharp fall in volumes of
the high share SCV segment. The newly launched Ultra trucks have started to receive good response from the
market. There have been various other initiatives such as the Freedom campaign and Triumph through trials
campaign of back-to-back and standalone fuel trials to establish the superior fuel efficiency of vehicles. The
Company tied up with various PCGs (Public sector, Co-operative & Garmin banks) and has brought out
several lucrative financing schemes to ease the financing situation. The Company also launched a major
initiative called, Saathi, a Parts retailers customer referral program for entire SCV range, to leverage their
customer base. Some of launches this year were the Ace, Magic DICOR and facelifts.
PASSENGERS VEHICLES
The Passenger Vehicle Industry contracted for the first time in the last five years, in FY 2013-14
with decline of 4.7%. The last such instance was during the economic slowdown of FY 2008-09 when it
remained close to flat at negative 0.5%. The decline in sales volumes is seen across segments, but sedans
bore the biggest brunt. Hatchbacks and UVs continue to be the volume segments. The high growth in UV
segment last year, with the onset of Soft Roaders could not be repeated this year. The premium and luxury
vehicles segment however has seen a growth even in an otherwise declining year.
The domestic performance in passenger vehicle segment is given below
Category

Industry
Sales
FY 2012-13

FY 2013-14
Units

Units

Micro

21,13

53,847

Compact

0
786,88

Midsize
Executive

Market Share

Growt

FY 2013- Sales
FY 2012-13

Growt

FY 2013-

FY 2012-

14Units

14

13

Units

21,13

53,847

794,284

60.8
-

0
84,14

8154,98

200,013

- 0.9%

12,41

118,27

23,537

23,973

Premium & Luxury

Company

100.0

100.0

117,377

-60.8

%
10.7

%
14.8

7,410

28.3
-

%
1.6

%
3.7

1,061

-67.4

%
0.9

%
4.5

84.5
73.3

%
36.0

%
15.8

-22.5 164

5,214

-22.4

1,43

825

23.8
-

0
29,40

45,841

-%

%
5.5

%
8.2

Utility Vehicles

532,96

560,892

Vans

3
118,61

123,254

-5.0%

93,15

2,964

35.8
6.5

%
2.7

%
2.4

8
2,438,50

2,557,566

-3.8%

8
141,84

229,325

- %

%
5.8

%
9.0

4.7%

38.1

Total

During the year, the Company recorded sales of 141,846 vehicles (including Jaguar Land Rover) in the

26

domestic market; a decline of 38.1%. The domestic market share was 5.8% as compared to 9.0% last year.
The Company introduced a host of new products including the E-max range of CNG vehicles, Vista tech, the
refreshed and improved Sumo Gold.
Nano Awesome Campaign was launched during the year, along with the launch of Nano Twist with
electronic power steering, thereby continuing to take the Nano Brand closer to the youth.
During the Delhi Auto Expo 2014, Tata Motor Flagship products, the Bolt hatchback and the Zest Sedan
were unveiled, to much appreciation. The Companys Horizonext strategy was unveiled, showcasing the
direction of Design, Performance & Connectivity that are going to be the brand pillars going ahead. The
Expo also saw the Nexon Compact SUV concept and the connectivity concept for the Company's future cars
being unveiled.
The drive to improve sales experience for customer with a focus on dcor and ambience in showrooms across
country continues. The dealership network is also being augmented to cater to the demand for Bolt and Zest
launch.
The Company sold 2,805 Jaguar and Land Rover vehicles through its exclusive dealerships in India
registering an impressive growth of 12.5%. The globally popular Range Rover Sport and Jaguar XF 3.0D
was launched during the year. New brand touch points were created in social media for both Jaguar and Land
Rover in a short span. Besides Land Rover Experience events were launched through which over 600
Dynamic Drive Off-road Experiences were delivered. 1st ever Land Rover Expedition was also launched
in India that received a stupendous response. A new after-sales customer engagement initiative was introduced
through Service Clinics in various dealer cities. Used Car program was introduced through 11 Outlets and
achieved a 48% penetration in March 2014.
Tata Motors Sales, Distribution and Support: The sales and distribution network in India as of March
31, 2014, comprised 2,420 sales contact points for the Passenger and Commercial Vehicle businesses. The
Company has deployed a Customer Relations Management (CRM) system at all its dealerships and offices
across the country, largest such deployment in the automotive market. The combined online CRM / DMS
system supports users both within the Company and among the distributors in India and abroad. The
Companys 100% subsidiary, TML Distribution Company Ltd (TDCL), acts as a dedicated distribution and
logistics management company to support the sales and distribution operations of vehicles in India. TDCL
provides distribution and logistics support for vehicles manufactured at the Companys facilities. TDCL helps
us improve planning, inventory management, transport management and timely delivery.
The Company provides financing support through its wholly- owned subsidiary, Tata Motors Finance Ltd
(TMFL). (Refer discussion on TMFL).
In addition to dealer service workshops, the Company uses a network of service centers on highways and a
27

toll-free customer assistance center to provide 24-hour on-road maintenance (including replacement of parts)
to vehicle owners. The Company believes that the reach of the sales, service and maintenance network,
provides us with a significant advantage over the competitors.
Tata Motors Exports: The Company markets its commercial and passenger vehicles in several countries in
Europe, Africa, the Middle East, South East Asia and South Asia. However, the Companys exports of
vehicles manufactured in India decreased marginally by 2% in FY 2013-14 to 49,922 units from 50,938
units in FY 2012-13. Commercial vehicles export sales of the Company shrunk by 2.3% to 43,083 units
impacted by the external environment influencers in Europe, the Middle East, and South Asia and passenger
vehicle sales remained flat 6,839 units.
For FY 2013-14, the Companys top five export destinations accounted for approximately 73% and 88% of
the exports of commercial vehicles and passenger vehicle units, respectively. The Company continues to
strengthen its position in the geographic areas it is currently operating in and exploring possibilities of
entering new markets with market characteristics similar to the Indian market.
The Company has set up a network of distributors in almost all countries where the vehicles are exported.
The distribution network includes local dealers for sales and servicing products in the respective regions. The
Company has also deputed its representatives overseas to support sales and services and to identify
opportunities.

28

INDIVIDUAL AUDITORS REPORT

To The Members Of
Tata Motors Limited
Report on the financial statements
We have audited the accompanying financial statements of TATA MOTORS LIMITED (the Company),
which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the significant accounting policies and other
explanatory information.

Managements responsibility for the financial statement

The Companys Management is responsible for the preparation of these financial statements that give a

true and fair view of the financial position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies Act, 1956 (the Act) (which continue
to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013
dated September 13, 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting
principles generally accepted in India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in
the financial statements. The procedures selected depend on the auditors judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the Companys preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys
internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the

29

reasonableness of the accounting estimates made by the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements give the information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that
date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

Report on other legal and regulatory requirements

1.

As required by the Companies (Auditors Report) Order, 2003 (the Order) issued by the Central
Government in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order

2.

As required by section 227(3) of the act we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply
with the Accounting Standards notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013
of the Ministry of Corporate Affairs).

30

(e) On the basis of the written representations received from the directors as on March 31, 2014 taken on
record by the Board of Directors, none of the directors is disqualified as on March 31, 2014 from being
appointed as a director in terms of Section 274(1) (g) of the Act.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firms Registration No. 117366W/W-100018)

B. P. SHROFF
Partner
MUMBAI,
May29,2014
(Membership No. 34382)

31

BALANCE SHEET OF TATA MOTORS AS ON 31ST MARCH 2014

Pag
e

As at
March 31, 2014

As at
March 31,
2013

I. EQUITY AND LIABILITIES

1. SHAREHOLDERS
FUNDS
(a) Share capital
(b) Reserves and surplus
2. NON-CURRENT
LIABILITIES
(a) Long-term borrowings

2
3

138
140

643.78
18,532.87

4
6
7
9

141
144
145
146

9,746.45

5
11
8
10

141
146
145
146

19,176.6
5

638.07
18,496.7
7
19,134.8
4
8,051.78

43.11

1,963.91

1,155.48

1,238.44

815.20

691.19
11,760.2
4

11,945.32

(b) Deferred tax liabilities (net)

4,769.08

(c) Other long-term liabilities

9,672.36

8,455.02

2,463.18

4,923.10

1,892.91

1,509.58

(d) Long-term provisions

12
13

147
147

18,797.5
3
49,734.4
2

3. CURRENT LIABILITIES
(a) Short-term borrowings
(b) Trade payables
(c) Other current liabilities
(d) Short-term provisions
TOT
AL
II. ASSETS
1. NON-CURRENT ASSETS

14
16
18

148
151
152

15
20
21
22
17
19

150
153
153
153
151
152

6,216.91

12,133.50

(ii) Intangible assets

(iii) Capital work-in-progress
(iv) Intangible assets under development

52,184.77

12,287.71

3,107.07

3,168.03

1,716.85

1,507.84

4,638.22
21,595.64

3,244.96

18,357.57

42,995.3
6

20,208.54
18,171.71

2,918.30

3,575.24

123.85

94.32
42,049.81

(a) Fixed assets

(i) Tangible assets

21,104.61

100.85

1,762.68

3,862.53

4,455.03

1,216.70

1,818.04

226.15
1,223.77
109.06

462.86
6,739.0
6

1,532.09
104.26
10,134.96

(b) Non-current investments

49,734.4
2

52,184.77

(c) Long-term loans and advances

32

Note
I.

REVENUE FROM OPERATIONS

154

Page

(IN CRORES)
2013-2014

23 (1)

37,758.00
(3,469.89)
34,288.11
3,833.03
38,121.14

Less : Excise duty

II.

OTHER INCOME
154

III.

TOTAL REVENUE (I + II)

IV.

EXPENSES :

2012-2013

23 (2)

(a) Cost of materials consumed

39
167

(b) Purchase of products for sale

33
165

27,244.28
5,864.45
(143.60)
2,837.00
1,387.76
38,607.08

24
155

(e) Finance cost

25
155

Depreciation and amortisation expense

(g) Product development expense / Engineering expenses

(i)

V.

Expenditure transferred to capital and other accounts

TOTAL EXPENSES
PROFIT / (LOSS) BEFORE EXCEPTIONAL ITEMS,
EXTRAORDINARY ITEMS AND TAX (III - IV)

425.76
(953.80)
46,262.79

(d) Employee cost / benefits expense

(h) Other expenses

1,817.62
7,783.32

(c) Changes in inventories of finished goods, workin-progress, and products for sale

(f) )

44,765.72
2,088.20
46,853.92

20,492.87
5,049.82
371.72
2,877.69
1,337.52
2,070.30
428.74
6,987.53
(1,009.11)

49,319.73
(4,554.01)

26
155

(485.94)

591.13

273.06
263.12
202.00

245.00

17.52

(9.67)

47.28

(82.25)
539.86

416.20

(1,025.80)

174.93

(1,025.80)

174.93

(1,360.32)

(126.88)

334.52

301.81

(a) Exchange loss (net) including on revaluation of foreign currency

borrowings, deposits and loans

1.03

0.93

(b) Provision for loan given and costs associated with closure of
operations of a subsidiary

1.03

0.93

(c) Diminution in the value of investments in a subsidiary

1.13

1.03

1.13

1.03

VI. EXCEPTIONAL ITEMS

(d) Employee separation cost

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 14

33

CASH FLOW STATEMENT

A.

Cash flows from Operating Activities

Profit after tax
Adjustments for:
Depreciation / amortization
Lease equalization adjusted in income
Loss / (profit) on sale of assets (net) (including assets scrapped / written off )
Profit on sale of investments (net)
Profit on sale of a division
Provision for loan given and cost associated with closure of operations of a subsidiary
Provision for loans and inter corporate deposits (net)
Provision / (reversal) for diminution in value of investments
Tax credit (net)
Interest / dividend (net)
Exchange differences (net)
Operating Profit before working capital changes
Adjustments
for:
Inventories
Trade receivables
Finance receivables
Other current and non-current assets
Trade payables and acceptances
Other current and non-current liabilities
Provisions

B.

2013-14

2,070.30

1,817.62

(4.52)
20.29
(2,052.33)
202.00
17.52
(1,360.32)
(443.18)
276.90

(4.52)
2.96
(43.91)
(82.25)
245.00
5.29
(9.67)
(126.88)
(656.52)
199.39
1,346.51
1,648.32

(1,273.34)
(938.82)

Loans to associates and subsidiaries

Advance towards investments in subsidiary companies
Investments in joint venture
Investments in subsidiary companies
Investments in associate companies
Investments - others
Investments in Mutual Fund (purchased) / sold (net)
Decrease in investments in retained interests in securitization transactions
Sale / redemption of investments in subsidiary companies
Redemption of investments in associate companies
Redemption of investments - others
(Increase) / decrease in short term inter corporate deposits
Deposits of margin money / cash collateral
Realization of margin money / cash collateral
Fixed/restricted deposits with scheduled banks made
Fixed/restricted deposits with scheduled banks realized
Fixed deposits with financial institution made
Fixed deposits with financial institution realized
Interest received
Dividend received
Net Cash from Investing Activities

129.42

592.50
601.34
15.00
141.37
1,212.83
249.25
646.05

890.28
64.76
(138.30)
(249.93)
(381.50)
188.06
502.79
2,151.11
107.33
2,258.44

3,458.34
2,519.52
(56.06)
2,463.46

Cash generated from operations

Income taxes credit / (paid) (net)
Net cash from operating activities
Cash flows from Investing Activities
Payments for fixed assets
Proceeds from sale of fixed assets
Proceeds from sale of a division
Realization of loans to associates and subsidiaries

2012-13
301.81

334.52

(3,105.42)
11.37
297.83

(2,605.39)
16.95
110.00
-

(146.28)
(135.15)
(325.00)
(443.18)
445.63
3,978.48
(40.00)
(530.15)
760.40
(200.00)
200.00
181.70
1,602.68

(194.36)
(16.82)
(186.12)
(0.01)
(0.84)
(315.51)
0.63
1,378.95
21.00
10.75
43.53
(1.38)
91.25
(205.85)
780.00
404.07
2,552.91

1,660.65
991.50

34

2013-2014
C.

2012-2013

Cash flows from Financing Activities

Expenses on Foreign Currency Convertible Notes (FCCN) /

(0.35)

(0.23)

Convertible Alternative Reference Securities (CARS) conversion

Premium on redemption of FCCN / (CARS) (including tax)
Brokerage and other expenses on Non-Convertible Debentures (NCD)
Premium paid on redemption of NCD
Proceeds from issue of shares held in abeyance

(886.95)

(87.54)

(93.02)

(658.05)

(96.55)

0.09

0.16

Repayment of fixed deposits

(362.19)

(1,868.38)

Proceeds from long-term borrowings

2,310.59

2,562.84

Repayment of long-term borrowings

(2,232.38)

(3,377.47)

Proceeds from short-term borrowings

8,548.00

Repayment of short-term borrowings

(8,679.86)

(10,177.80)

Net change in other short-term borrowings (with maturity up to three months)

(1,473.41)

1,287.75

(648.81)

(1,460.41)

(1,749.90)

(1,809.42)

Dividend paid (including dividend distribution tax)

Interest paid [including discounting charges paid, ` 373.78 crores (2012-2013 `
345.06 crores)]

(5,033.81)

Net Cash used in financing activities

11,873.79

(4,045.69)

Net Decrease in cash and cash equivalents (A+B+C)

(17.44)

(795.75)

Cash and cash equivalents as at April 01, (opening balance)

205.57

919.64

10.55

81.68

198.68

205.57

413.34

232.83

Exchange fluctuation on foreign currency bank balances

Cash and cash equivalents as at March 31, (closing balance)
Non-cash transactions :
Foreign Currency Convertible Notes (FCCN) / Convertible Alternative Reference
Securities
(CARS) converted to Ordinary shares

35

NOTES FORMING PART OF FINANCIAL STATEMENT

(`in crores)

As at
March 31,

As at
March 31,

2014
2.
(a)

Share Capital
Authorised :
350,00,00,000 Ordinary shares of `2 each
(as at March 31, 2013: 350,00,00,000 Ordinary shares of `2 each)

700.00

700.00

100,00,00,000 A Ordinary shares of `2 each

(as at March 31, 2013: 100,00,00,000 A Ordinary shares of `2 each)

200.00

200.00

3,000.00

3,000.00

3,900.00

3,900.00

547.44

541.73

96.44

96.44

643.88

638.17

547.34

541.63

96.40

96.40
638.03
(0.01)

30,00,00,000 Convertible Cumulative

Preference shares of `100 each (as at
March 31, 2013: 30,00,00,000 shares of
`100 each)
(b)

2013

Issued [Note (k), page 139] :

273,71,97,592 Ordinary shares of `2 each
(as at March 31, 2013: 270,86,48,026 Ordinary shares of `2 each)
48,22,06,515 'A' Ordinary shares of `2 each
(as at March 31, 2013: 48,22,06,515 'A' Ordinary shares of `2 each)

(c)

Subscribed and called-up :

273,67,13,122 Ordinary shares of ` 2 each
(as at March 31, 2013: 270,81,56,151 Ordinary shares of `2 each)
48,19,66,945 'A' Ordinary shares of `2 each
(as at March 31, 2013: 48,19,59,620 'A' Ordinary shares of `2 each)

(d)

Calls unpaid - Ordinary shares

643.74
(0.01)

(e)

Paid -up ( c + d )

643.73

638.02

0.05

0.05

643.78

638.07

(f)

Forfeited Shares - Ordinary shares

Total ( e + f )

36

(g) Movement and number of shares and share capital

2013-2014
No. of shares (`in crores)
(i)

Ordinary shares
Shares as on April 1

270,81,56,151

Add: Shares issued out of held in abeyance

7,405

2012-2013
No. of shares (` in crores)

541.63

269,16,13,455

-*

538.32

1,125

-*

Add: Shares issued through conversion of Foreign Currency

Convertible Notes (FCCN) / Convertible Alternative Reference
Securities (CARS)
Shares as on March 31
(ii)

A Ordinary shares
Shares as on April 1

2,85,49,566

5.71

273,67,13,122

547.34

48,19,59,620

Add: Shares issued out of held in abeyance

Shares as on March 31

7,325
48,19,66,945

96.40

1,65,41,571

541.63
270,81,56,151
48,19,33,115

-*
96.40

3.31

96.39

26,505
48,19,59,620

0.01
96.40

* Less than ` 50,000/-

(h) Rights, preferences and restrictions attached to shares :

(i) Ordinary shares and A Ordinary shares, both of `2 each :
The Company has two classes of shares the Ordinary shares and the A Ordinary shares both of
`2 each (together referred to as shares). In respect of every Ordinary share (whether fully or partly paid),
voting rights shall be in the same proportion as the capital paid up on such Ordinary share bears to the
total paid up Ordinary share capital of the Company. In case of every A Ordinary share, if any
resolution is put to vote on a poll or by postal ballot at any general meeting of shareholders, the holder
shall be entitled to one vote for every ten A Ordinary shares held as per the terms of its issue and if a
resolution is put to vote on a show of hands, the holder of A Ordinary shares shall be entitled to the
same number of votes as available to holders of Ordinary shares.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting. Further, the Board of Directors may also announce an interim
dividend. The holders of A Ordinary shares shall be entitled to receive dividend for each financial year
at five percentage point more than the aggregate rate of dividend declared on Ordinary shares for that
financial year.
In the event of liquidation, the shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion to their shareholdings.

37

(i) Number of shares held by each shareholder holding more than 5 percent of the issued share capital
As at March 31, 2014
% of Issued
(i)

(ii)

No. of shares

share capital

Ordinary shares :
(a)

Tata Sons Limited

(b)
(c)

Tata Steel Limited

Citibank N A as Depositary

A Ordinary shares :
(a) Matthews Asia Dividend Fund
(b)

As at March 31, 2013

HSBC Global Investment Funds A/C HSBC Global Investment Funds

Mauritius Ltd

(c)

HDFC Trustee Co Limited - HDFC Top 200 Fund

(d)

HDFC Trustee Co Limited - HDFC Equity Fund

% of Issued

No of shares

share capital

25.67%

70,23,33,345

25.93%

70,23,33,345

5.40%

14,78,10,695

5.46%

14,78,10,695

58,16,74,545

49,80,91,115

6.93%

3,33,95,515

6.04%

2,90,86,664

5.97%

2,87,89,306

held by Citibank, N.A. as depositary for American Depositary Receipts

(ADRs) and Global Depositary Receipts (GDRs)

6.10%

2,93,87,761

Less than 5%

5.37%

2,58,78,932

(j) Information regarding issue of shares in the last five years

(i)The Company has not issued any shares without payment being received in cash.
(ii)

There has been no issue of bonus shares.

(iii)

The Company has not undertaken any buy-back of shares.

(k) The entitlements to 4,84,470 Ordinary shares of `2 each (as at March 31, 2013 : 4,91,875
ordinary shares of `2 each) and 2,39,570 A Ordinary shares of `2 each (as at March 31, 2013:
2,46,895 A Ordinary shares of `2 each) are subject matter of various suits filed in the courts / forums by
third parties for which final order is awaited and hence kept in abeyance.

38

(` in crores)

Reserves and surplus

As at
March 31,

Additions

Deductions

2013
(a) Capital Redemption Reserve

(b) Securities Premium Account [Note (i) and (ii)]

(c) Debenture Redemption Reserve
(d) Revaluation Reserve [Note (iii)]
(e) Amalgamation Reserve
(f ) General Reserve [Note (iv)]
(g) Foreign Currency Monetary Item Translation Difference
Account (net) [Note (v)]
(h) Profit and Loss Account (Surplus) [Note (vi)]

As at
March
31,
2014

2.28

2.28

2.28

2.28

11,328.57

441.93

87.41

11,683.09

11,186.76

233.31

91.50

11,328.57

1,042.15

1,042.15

1,172.15

130.00

1,042.15

23.31

0.44

22.87

23.75

0.44

23.31

0.05

0.05

0.05

0.05

4,972.62

33.45

5,006.07

4,942.36

30.26

4,972.62

(215.00)

(100.34)

(114.11)

(201.23)

(258.35)

(355.02)

(398.37)

(215.00)

1,342.79

413.55

778.75

977.59

1,663.91

433.29

754.41

1,342.79

18,496.77

788.59

752.49

18,532.87

18,732.91

341.84

577.98

18,496.77

39

2013-2014
Additions
(i) The opening and closing balances of Securities Premium
Account are net of calls in arrears of ` 0.03 crores
(ii) Securities Premium Account :
(a) Premium on shares issued on conversion of Foreign Currency
Convertible Notes (FCCN) / Convertible Alternative
Reference Securities (CARS) and held in abeyance out of
rights issue of shares
(b) Share issue expenses and brokerage, stamp duty and
other fees on Non Convertible Debentures [net of tax
`0.48 crore (2012-13 `1.75 crore)]
(c) Premium on redemption of FCCN / CARS, exchange differences and
withholding
tax. [net of tax ` Nil (2012-13 `12.31 crores)]
(iii)

Revaluation Reserve :
Depreciation on revalued portion of assets taken over on
amalgamation of a company

(iv) General Reserve :

(a) Amount recovered (net) towards indemnity relating to
business amalgamated in prior year
(b) Amount transferred from Profit and Loss Account (Surplus)
(v) Foreign Currency Monetary Item
Transalation Difference Account
(net) :
(a) Exchange loss during the year (net)
(b) Amortisation of exchange fluctuation for the year
(vi) Profit and Loss Account (Surplus) :
(a) Profit after tax for the year
(b) Credit for dividend distribution tax
(c) Proposed dividend
(d) Dividend paid (2012-13)
(e) Tax on proposed dividend
(f) ) Reversal of dividend distribution tax of earlier year
(g) Debenture Redemption Reserve
(h) General Reserve

407.72
34.21
441.93

2012-2013
Additions
Deductions

229.68

87.4

3.63

87.41

233.31

91.50
91.50

0.44

0.44

0.44

0.44

0.08

33.45
33.45

30.18
30.26

(355.02)

(100.34
)
-

(100.34
)
334.52
-

(114.11
)(114.11
)
648.56
3.34
93.40

(355.02)

(398.37)
(398.37)

301.81
1.48
-

645.20
79.03

413.55

33.45
778.75

130.00
433.29

30.18
754.41

Notes

40

Long-term borrowings

(A) Secured
(a) Privately placed Non-Convertible Debentures [ Note I (i) (a) and (b) and (ii) (a), page 142]
(b) Term loans from banks :
Buyers line of credit (at floating interest rate) [Note I (i) (c) and (iii), page 142]
(c) Term loans from others [ Note I (i) (d), page 142]
(d) Finance lease obligations [Note 29 (A) (a) (ii), page 158]
(B) Unsecured
(a) Foreign Currency Convertible Notes (FCCN) [ Note I (iv), page 143]
(b) Privately placed Non-Convertible Debentures [Note I (ii) (b) page 142]
(c) Term loans from banks :
(i) External Commercial Borrowings - USD 500
million (at floating interest rate) [Note I (v), page
143]
(ii) Buyers line of credit (at floating interest rate) [ Note I (iii), page 142]
TOTAL (A+B)

Short-term borrowings

(A) Secured
From banks [Note II, page 143]
(a) Loans, cash credit, overdrafts accounts
(b) Buyers line of credit (at floating rate interest)
(c) Foreign Currency Non Repatriable Borrowings (FCNR(B))
(B) Unsecured
(a) From banks
(b) Loans and advances from subsidiaries and associates (repayable on demand)
(c) Commercial paper [maximum balance outstanding during the year
`3,715 crores (2012-2013 : `3,345 crores)]
TOTAL (A+B)

As at
March 31,
2014

As at
March 31,
2013

1,950.00

1,950.00

121.03
419.54
14.80

248.85
167.20
31.92
2,397.97

2,505.37
-

402.25

3,300.00

2,500.00

2,995.00

2,714.26

946.08

37.30

7,241.08
9,746.45

5,653.81
8,051.78

As at
March
31,
2014

As at
March 31,
2013

1,796.31
148.33
1,944.64

2,232.39
704.51
542.85
3,479.75

2,000.00

400.00

31.00
793.44

350.60
1,986.56

2,824.44
4,769.08

2,737.16
6,216.91

41

Other Long-term liabilities

(a)
(b)
(c)
(d)
(e)
(f )

Liability towards premium on redemption of Non-Convertible Debentures

Deferred payment liabilities
Interest accrued but not due on borrowings
Derivative financial instruments
Deferred revenue
Others

Other current liabilities

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)

(k)
(l)

Interest accrued but not due on borrowings

Current maturities of long term borrowings [Note below]
Liability for capital expenditure
Liability for deposits and retention
Deferred payment liabilities
)
Advance and progress payments from customers
Deferred revenue
Statutory dues (VAT, Excise, Service tax, Octroi, etc)
Liability towards premium on redemption of Non-Convertible Debentures
Liability towards Investors Education and Protection Fund under Section
205C of the Companies Act, 1956 not due
(i) Unpaid dividends
(ii) Unclaimed matured deposits
(iii) Unclaimed matured debentures
(iv) Unclaimed interest on deposits and debentures
Derivative financial instruments
Others

As
at
March
919.23
183.83
0.34
1.85
15.65
34.58
1,155.4

As at
March
31,
919.23
237.00
23.57
58.64
1,238.4
4

As at
March
31,
267.43
537.27
107.59
159.92
65.83
547.80
49.70
598.40
-

As at
March 31,
2013
253.12
2,530.26
118.40
171.88
63.82
341.78
17.85
584.89
658.05

17.40
28.74
0.21
3.14
0.24
79.51
2,463.18

17.66
76.78
0.21
4.56
7.68
76.16
4,923.10

Note :
Current maturities of long-term borrowings consist of :
300.00

1,800.00

Buyers line of credit (at floating rate interest) [Note I (i) (c) and (iii), page 142]

215.34

252.49

(iii) Foreign Currency Non Repatriable Borrowings (FCNR(B)) [Note II, page 143]

146.57

21.93
537.27

314.14
17.06
2,530.26

(i)

Non Convertible Debentures [Note I (i) (a) and (b) and (ii) (b), page 142]

(ii)

(iv) Deposits accepted from public and shareholders [Note I (vi) page 143]
(v) Finance lease obligations [Note 29 (A) (a) (ii), page 158]

42

As
Long-term provisions
(a)
(b)
(c)
(d)
165]
(e)

Employee benefit obligations

Product warranty [Note 36 (a), page 165]
Provision for delinquency [Note 36 (b), page 165]
Premium for redemption of Foreign Currency Convertible Notes (FCCN) [Note 36 (c), page
Others

at

at

March
422.2
5
146.2
4246.6
7 -

March
435.64
124.24
94.43
34.21
2.67
691.19

0.04
815.2

As

Short-term provisions
(a) Employee benefit obligation
(b) Product warranty [Note 36 (a), page 165]
(c) Provision for delinquency [Note 36 (b), page 165]
(d) Current income tax (net of payment)
(e) Proposed dividend
(f ) Provision for tax on dividends
(g) Others

Trade payables

As

As at March 31,
2014

at
March
64.47
263.24
770.94
49.22
648.56
93.40
3.08
1,892.9
As at March 31,
2013

As at
March
31, 34.37
309.38
242.81
171.46
645.20
79.03
27.33
1,509.5
8

(a)

Acceptances

4,955.54

4,098.96

(b)

Other than acceptances* [ Note 43 (iv), page 169]

4,716.82

4,356.06

9,672.36

8,455.02

Includes payable to subsidiary companies :

Concorde Motors (India) Ltd

3.51

4.73

TAL Manufacturing Solutions Ltd

7.60

8.53

124.09

60.00

Tata Motors Finance Ltd

45.02

146.90

Tata Technologies Ltd

29.27

37.42

TML Distribution Company Ltd

28.31

132.26

20.05

2.96

Trilix Srl, Turin (Italy)

15.32

Tata Daewoo Commercial Vehicle Co. Ltd

0.10

Tata Motors European Technical Centre Plc

Jaguar Cars Ltd

Tata Marcopolo Motors Ltd

43

Tangible assets
Particulars

[I] Owned assets :

(i) Land
(ii) Buildings [Note (i) and (ii) (a)]
(iii)Plant, machinery and
equipment [Note (ii) (a) & (iii)]
(iv) Furniture and fixtures [Note (iii)]
(v) Vehicles [Note (iii)]
(vi) Office equipment [Note (iii)]
(vii)
Computers and other IT assets
[Note (iii)]
[II]

(viii)
Water system and
sanitation [Note (ii)(a)]
Assets given on lease :
(i)
Plant, machinery and equipment

[III
] Assets taken on lease :
(i) Leasehold land [Note (ii)(b)]
(ii) Buildings

(iii)Plant, machinery and equipment

Cost as
at April
1,
2013

Additions / Deductions /
adjustments adjustments
[Note (iv)]

Cost
as at
March
31,
2014

Accumulate
d
depreciatio
n as at April
1, 2013

Depreciatio Deductions
n for the
/
year
adjustment
s for the
[Note (v)]
year

Accumulate
d
depreciatio
n up to
March
31,
2014

Net
book
value
as at
March 31,
2014

519.76
519.76
2,533.82
2,352.11
17,134.19
15,825.26
121.69
109.85
158.56
139.54
49.25
46.27
569.47
553.87
205.30
164.31

186.78
186.11
868.63
1,484.74
11.09
13.47
17.98
34.49
1.72
3.83
34.17
24.94
12.27
41.08

2.18
4.40
82.43
175.81
0.55
1.63
12.58
15.47
1.30
0.85
39.26
9.34
0.09

519.76
519.76
2,718.42
2,533.82
17,920.39
17,134.19
132.23
121.69
163.96
158.56
49.67
49.25
564.38
569.47
217.57
205.30

543.50
474.97
7,989.70
7,071.44
50.06
44.46
89.30
78.36
19.57
18.11
467.36
437.33
55.15
46.72

77.11
71.01
1108.45
1,060.66
6.60
6.62
24.42
23.00
2.28
2.22
30.10
38.97
9.77
8.51

0.45
2.48
77.11
142.40
0.41
1.02
9.15
12.06
0.72
0.76
38.94
8.94
0.08

620.16
543.50
9,021.04
7,989.70
56.25
50.06
104.57
89.30
21.13
19.57
458.52
467.36
64.92
55.15

519.76
519.76
2,098.26
1,990.32
8,899.35
9,144.49
75.98
71.63
59.39
69.26
28.54
29.68
105.86
102.11
152.65
150.15

392.79
392.79

392.79
392.79

377.00
377.00

4.52
4.52

4.52
4.52

377.00
377.00

15.79
15.79

118.73
118.73
31.28
31.28
36.43
36.43
151.43

2.65
4.06

121.38
118.73
31.28
31.28
36.43
36.43
155.49

12.44
11.26
4.25
3.73
31.77
29.94
94.89

1.36
1.18
0.05
0.08
1.46
1.83
20.00

(0.44)
(0.44)
-

13.80
12.44
4.74
4.25
33.23
31.77
114.89

107.58
106.29
26.54
27.03
3.20
4.66
40.60

(iv) Computers and other IT assets

Total Tangible assets

Intangible assets
Particulars

(i)

(ii)

(iii)

Technical Know-how #

Computer software #

Product development cost *

Total Intangible assets

113.21

38.22

151.43

63.62

31.27

94.89

56.54

22,022.70
20,403.41

1,139.35
1,826.88

138.30
207.59

23,023.75
22,022.70

9,734.99
8,656.94

1,286.12
1,249.87

130.86
171.82

10,890.25
9,734.99

12,133.50
12,287.71

Cost as
at April
1,
2013

Additions / Deductions /
adjustments adjustments
**

Cost as
at
March
31,
2014

Accumulate Amortization Deductions

d
for the year
/
amortizatio
adjustment
n as at April
s for the
1, 2013
year

Accumulate
d
amortizatio
n up to
March 31,
2014

Net book
value as
at March
31,
2014

34.51

241.30

275.81

34.51

10.79

45.30

230.51

34.51

34.51

34.51

34.51

417.04

22.11

439.15

317.84

42.46

360.30

78.85

382.32

34.95

0.23

417.04

276.86

41.21

0.23

317.84

99.20

4,592.93

459.81

5,052.74

1,524.10

730.93

2,255.03

2,797.71

4,165.15

427.78

4,592.93

997.56

526.54

1,524.10

3,068.83

5,044.48

723.22

5,767.70

1,876.45

784.18

2,660.63

3,107.07

4,581.98

462.73

0.23

5,044.48

1,308.93

567.75

0.23

1,876.45

3,168.03

44

Non Current
Investment
Number
100
20,000
50
16,56,517
4
100
200

Face
value Description
per
unit
(SGD) 1
10
5
(M$) 1
25,000
10
10

(i)
Investments in subsidiary companies
TML Holdings Pte Ltd, (Singapore)
(ii)
Investments in other companies
Metal Scrap Trade Corporation Ltd
(15,000 shares received as bonus
during the year) Jamshedpur Cooperative Stores Ltd
Tata Industries Sdn.
Bhd. Malaysia ICICI
Money Multiplier Bond
Optel
Telecommunication
s Punjab Chemicals

2,778.73

2,778.73

25,000

25,000

250
1
1
1,995
1

250
1
1
1,995
1

45

Current investments
Number Face
Description
value
per
I Current investments - others (at cost or fair value whichever is
unit
lower)
(A) Trade investments
(1) Fully paid Ordinary / Equity shares (unquoted)
(i) Subsidiaries
1,55,40,737 (USD) 1
PT Tata Motors Indonesia [Note 7, page 149]
(95,69,422 shares acquired during the year)

35,000
91,800
30,997

1,00,000
2,00,000

10
10
10

100
100

(2) Fully paid Cumulative Redeemable Preference

shares (unquoted) Subsidiaries
6.25% TML Holdings Pte Ltd,
(Singapore) (25,85,463 shares
redeemed during the period)
(B)Other investments
(1) Investments in mutual fund
(unquoted) Liquid/liquid plus
schemes
Tata Liquid Fund Plan AGrowth Kotak Floater
Short Term-Growth
DWS Ultra Short Term Fund-Institutional Plan-Growth
Templeton India Ultra - Short Bond Fund - Super Institutional Growth
(2) Investments in Equity shares (unquoted)
Elcot Power Control
Ltd Munis Forge Ltd.
Roofit Industries Ltd.
(3) Investments in Preference shares (unquoted)
15.50% Pennar Paterson Securities Ltd

Notes:
(1) Face value per unit is in Rupees unless stated otherwise
(2) Book value of quoted investments
(3) Book value of unquoted investments
(4) Market value of quoted investments

As at
March 31,
2014

As at
March 31,
2013

80.7
0

80.7
0
1,403.2
6

25.00

75.41
102.0
157.0
-

359.4
2
-

20.1
5

359.4
2
-

20.1
100.8

1,762.6
8

100.85
-

1,762.68
-

46

16.

Unsecured (considered good unless stated otherwise)

(a) Loans to employees
(b) Loan to a Joint Venture (FIAT India Automobiles Ltd)
(c)
Loans to subsidiaries :
Considered good
Considered doubtful
Less : Allowances for doubtful loans
(d)

Dues from subsidiary (Tata Hispano Motors Carrocera S.A.)

Considered good
Considered doubtful
Less : Allowances for doubtful debts

(e)
(f )
(g)
(h)
(i)

Taxes recoverable, statutory deposits and dues from government

Capital advances
Credit entitlement of Minimum Alternate Tax (MAT)
Non-current income tax assets (net of provisions)
Others :
Considered good
Considered doubtful
Less : Allowances for doubtful loans and advances

17.

As
at
March
31,
37.01
265.00

Long-term loans and advances

22.39
539.40
561.79
(539.40)
55.13
55.13
(55.13)

148.11
9.69
157.80
(9.69)

Secured
(a) Finance receivables #
Vehicle loans*
Considered good
Considered doubtful
Less : Allowances for doubtful loans

(B)
(a)

Unsecured (considered good unless stated otherwise)

Advances and other receivables recoverable
Considered good
Considered doubtful
Less : Allowances for doubtful loans and advances
(b)

Inter corporate deposits

Considered good
Considered doubtful
Less : Allowances for doubtful loans

(e)

(c) Dues from subsidiary companies [ Note (i), page 152]

(d) VAT, other taxes recoverable, statutory deposits and dues from Government
Current income tax assets (net of provisions)
(f ) Others

148.11
2,918.30

As
at
March

22.19
225.47
247.66
(225.47)

196.39
69.89
266.28
(69.89)

39.20
265.00
303.61
398.95
702.56
(398.95)
303.61
47.92

845.34
242.11
777.18
581.16

Short-term loans and advances

(A)

22.39

As at
March 31,
2013

47.92
47.92
694.54
127.32
1,508.98
472.86
115.81
12.29
128.10
(12.29)
115.81
3,575.24

As at
March 31,
2013

22.19

196.39

40.00
6.51
46.51
(6.51)
40.00
38.51
887.50
24.73
14.45
1,201.58
1,223.77

47

Note :
(i)

As at
March 31,
2014

As at
March 31,
2013

Dues from subsidiary companies

14.47
25.83

(a)

TML Drivelines Ltd

(b)

PT Tata Motors Indonesia

7.15

3.44

(c)

Tata Motors (SA) (Proprietary) Ltd

3.69

3.57

(d)

PT Tata Motors Distribusi, Indonesia

0.82

(e)

Jaguar Land Rover Ltd

0.44

8.06

(f ) Tata Daewoo Commercial Vehicle Co. Ltd

0.33

1.50

(g)

JLR Automotive Plc

0.23

(h)

Tata Marcopolo Motors Ltd.

0.02

51.04

(i)

Tata Motors (Thailand) Ltd

25.28

(j)

TML Distribution Company Ltd

0.01

(k)

Tata Motors European Technical Centre

0.42

(l)

Tata Motors Finance Ltd

0.01
38.51
107.80

Loans are secured against hypothecation of vehicles

*
Includes ` 0.16 crore (as at March 31, 2013 `1.17 crores) on account of overdue securitised
receivables

48

Other non-current assets

(a)
(b)
(c)
(d)

Prepaid debt issue cost

Prepaid expenses
Interest accrued on deposits / loans
Derivative financial instruments

Other current assets

(a)
(b)
(c)
(d)

21.

Prepaid debt issue cost

Prepaid expenses
Interest accrued on deposits / loans
Derivative financial instruments

Trade receivables

(a)

Due over six months :

Considered good (unsecured)
Considered doubtful
Less : Provision for doubtful debts

(b)

Others :
Considered good (unsecured)
Considered doubtful
Less : Provision for doubtful debts

As at
March 31,
2014

As at
March 31,
2013

21.37
0.17
81.60
20.71
123.85

33.27
0.80
60.14
0.11
94.32

As
at
March
31,
12.0
94.8
50.06
2.06
109.0

As
at
March
31,
12.7
63.5
8
25.6
32.34
104.2
6

As at
March
31,
2014

As at
March 31,
2013

292.86
493.35

461.32
221.50
682.82
(221.50)
461.32

786.21
(493.35)

1,356.72
19.09
1,375.81
(19.09)
1,356.72
1,818.04

292.86
923.84
18.01
941.85
(18.01)
923.84
1,216.70

49

Cash and bank balances

As
at
March

As
at
March

(A) Cash and cash equivalents

(a)
(b)
(c)

Cash on hand
Cheques on hand
Current account with banks

(B) Other bank balances (with more than 3 months but less than 12 months maturity)
(a) Earmarked balance with banks
(b) Bank deposits
(c) Margin money / cash collateral with banks
(C) Other bank balances (with more than 12 months maturity)
(a) Margin money / cash collateral with banks
(b) Bank deposits with maturity more than 12 months
#

Includes
- Remittances in transit
- In foreign currencies

Total revenue
1.

Revenue from operations

(a) Sale of products (Note 1 below) [Note 38, page 167]
(b) Sale of services
(c) Income from vehicle loan contracts
(d) Other operating revenues

2.

Other income
(a) Interest income
(b) Dividend income [Note 2 below]
(c) Profit on sale of investments (current) (net) [Note 3 below]

Note :
(1) Includes exchange (loss) / gain (net)
(2) Includes dividend on
(a) Trade investments (non-current)
(b) Dividend from subsidiary companies (non-current)
(3) Profit on sale of Investment in subsidiary companies [Note 43 (ii), page 169]
(Classified as current during the year )

0.65
1.22
25.6
46.84
172.4
3
0198.6
8
23.3
247.3
8 0.21
70.08
5.77
23.4
253.36
5
0.11
0.02
3.91
3.91
4.02
3.93
226.1
5
144.56
4.72 462.86 0.29

201337,101.7
4 256.90
18.22
37,376.8
6
37,758.0
178.02
1,602.6
2,052.3
3,833.0

2012-2013
48,665.2
8 222.29
39.48
48,927.0
392.68
49,319.7
3
1,660.65
43.91
2,088.20

(31.17
)

101.35

28.70
1,573.9
8
1,966.1
2

77.07
1,583.58
-

50

Employee cost / benefits expense

2013-2014

2012-2013

(a)

Salaries, wages and bonus

2,355.59

2,312.15

(b)
(c)

Contribution to provident fund and other funds

Staff welfare expenses

218.94
303.16
2,877.69

207.53
317.32
2,837.00

Finance cost
(a)

(b)

2013-2014

2012-2013

Interest

1,359.48

1,378.78

Less: Transferred to capital account

(366.52)

(327.33)

992.96
344.56

1,051.45

1,337.52

1,387.76

2013-2014

2012-2013

Discounting charges

Other expenses

336.31

(a)

Processing charges

1,416.70

1,743.64

(b)

Consumption of stores and spare parts

497.90

655.67

(c)

Power and fuel

392.09

484.66

(d)

Rent

92.80

84.11

(e)

Repairs to buildings

48.93

91.97

(f )

Repairs to plant, machinery etc.

94.39

95.61

(g)

Insurance

80.03

74.80

(h)

Rates and taxes

86.08

32.01

(i)

Freight, transportation, port charges, etc.

905.01

929.63

(j)

Publicity

612.18

792.67

(k)

Excise duty on change in closing stock

(68.37)

58.41

(l)

Works operation and other expenses [note below]

2,829.79
6,987.53

2,740.14
7,783.32

Note :
Works operation and other expenses include
(a)

Warranty expenses

343.78

353.05

(b)

Computer expenses

594.51

529.43

(c)

Consultancy

181.33

189.96

(d)

Provisions and write off for sundry debtors, vehicle loans and advances

262.40

35.80

51

Earnings Per Share

2013-2014

2012-2013

334.52

301.81

(a)

Profit after tax

` crores

(b)

The weighted average number of Ordinary shares for Basic EPS

Nos.

273,23,46,381

270,60,14,707

(c)

The weighted average number of A Ordinary shares for Basic EPS

Nos.

48,19,62,228

48,19,58,717

(d)

The nominal value per share (Ordinary and A Ordinary)

2.00

2.00

(e)

Share of profit for Ordinary shares for Basic EPS

` crores

280.26

252.09

(f )

Share of profit for A Ordinary shares for Basic EPS *

` crores

54.26

49.72

(g)

Earnings Per Ordinary share (Basic)

1.03

0.93

(h)

Earnings Per A Ordinary share (Basic)

1.13

1.03

(i)

Profit after tax for Diluted EPS

` crores

334.52

301.81

(j)

The weighted average number of Ordinary shares for Basic EPS

Nos.

273,23,46,381

270,60,14,707

(k)

Add: Adjustment for Options relating to warrants and shares held in abeyance

Nos.

4,89,261

4,92,722

(l)

The weighted average number of Ordinary shares for Diluted EPS

Nos.

273,28,35,642

270,65,07,429

Nos.

48,19,62,228

48,19,58,717

(m)

The weighted average number of A Ordinary shares for Basic EPS

(n)

Add: Adjustment for A Ordinary shares held in abeyance

Nos.

2,44,287

2,47,798

(o)

The weighted average number of A Ordinary shares for Diluted EPS

Nos.

48,22,06,515

48,22,06,515

(p)

Share of profit for Ordinary shares for Diluted EPS

` crores

280.25

252.08

(q)

Share of profit for A Ordinary shares for Diluted EPS *

` crores

54.27

49.73

(r)

Earnings Per Ordinary share (Diluted)

1.03

0.93

(s)

Earnings Per A Ordinary share (Diluted)

1.13

1.03

52

Contingent liabilities, commitments (to the extent not provided for)

Description of claims and assertions where a potential loss is possible, but not probable is reported under
note (1) and (2) below :
1

869.50

353.54

573.96

238.84

856.67

867.35

565.49

585.94

250.34

173.90

157.52

117.48

(iv) Income Tax in respect of matters pending in appeal / others

92.58

95.20

The claims / liabilities in respect of excise duty, sales tax and other matters where the
issues were decided in favour of the Company for which the Department is in further
appeal

71.42

70.80

348.39

204.30

Sales tax

Gross
- Net of tax

(ii)

Excise duty -

Gross
- Net of tax

(iii) Others

Gross
- Net of tax

Other money for which the Company is contingently liable in respect of bills
discounted and export sales on deferred credit

Estimated amount of contracts remaining to be executed on capital account and

not provided for

As at
March 31,
2013

Claims against the Company not acknowledged as debts

(i)

As
at
March
31,

1,629.65

1,526.11

9,597.72

12,142.44

Purchase commitments

53

CONCLUSION
We have following observations from the financial statements:
1. Company has made growth in its revenue by adopting cost effective production
Technique.
2. The company has disclosed true and fair financial statement as the audit report does not
Contained any qualification by the statutory auditor.
3. The company has done all the disclosures as required by The Companies Act, 1956 and
The Accounting Standards.

54

BIBLIOGRAPHY
GOOGLE.COM
WIKIPEDIA.COM
TATA MOTORS.COM
BOOK ADVANCE FINANCIAL ACCOUNTANCY BY DR. VARSHA M. AINAPURE

55