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Sixty-Seventh Annual Report 2011-2012
During the year, the Company raised Syndicated Foreign
currency term loans of USD 500 million in accordance with the
guidelines on External Commercial Borrowings (ECB) issued by
the Reserve Bank of India in two tranches with tenors between
four to seven years towards financing its general capital
expenditure and investments in its overseas subsidiaries.
Tata Motors issued rated, listed, unsecured, non-convertible
debentures of
`
500 crores with maturities of 5-7 years in May
2012, to optimize the loan maturity profile.
During the year, post spend on capex, design and development
of GB£ 1,410million (
`
10,765 crores), the free cash flows were
GB£ 1,062 million (
`
8,318 crores), for Jaguar Land Rover. The
borrowings of the Jaguar Land Rover as on March 31, 2012
stood at GB£ 1,848 million (
`
15,065 crores) (previous year GB£
1,260 million (
`
9,007 crores)). Cash and bank balances stood at
GB £2,563 million (
`
20,891 crores) (previous year GB£ 1,028
million (
`
7,349 crores)) resulting in negative net debt position.
In May 2011, Jaguar Land Rover PLC issued GB£1,000 million
equivalent Senior Notes (Notes). The Notes include,
GB£500 million Senior Notes due 2018, at a coupon of
8.125% per annum, USD 410 million Senior Notes due 2018, at
a coupon of 7.75% per annum and USD 410 million Senior
Notes due 2021 at a coupon of 8.125% per annum. This facility
gave Jaguar Land Rover an access to long tenor funding while
also diversifying its sources of funding.
In March 2012, Jaguar Land Rover issued GB£500 million
Senior Notes due 2020, at a coupon of 8.25% per annum,
with a yield of 8.375% per annum. This was an opportunistic
fund raising which enabled Jagaur Land Rover to reinforce its
market acceptance and demonstrated the confidence of the
investors, while continuing to support steps taken towards
strengthening capital structure and enhancing the debt
maturity profile.
During the year, Jaguar Land Rover established 3-5 year
committed Revolving Credit Facility amounting to GB£710
million. These lines, which have been availed from 13 banks, can
be drawn as per requirement and is a step to further strengthen
the capital structure.
Tata Motors Finance Limited raised
`
155 crores by an issue of
and Safety training and Induction programmes; with focused
events around skilled workers being recruited into functions
such as plant maintenance. The business has continued and
built upon its programme of proactive health promotion events
for employees throughout the year, covering a range of topics.
A Health and Safety Week coinciding with the European Week
of Safety took place across all Jaguar Land rover sites, comprising
a series of specific events for its workforce.
Tata Daewoo Commercial Vehicles Co. Ltd, Korea recorded an
incident rate of 0.48% for FY 2011-12, at par with the total
industry rate. The Safety Index for FY 2011-12 was posted at
2.40, an improvement from 2.87 for FY 2010-11. TDCV also took
a series of steps to improve their work environment for which
it was declared as "Toxic free TATA DAEWOO." Tata Motors
(Thailand) Limited reported an improved safety performance.
Safety risk assessment is being reviewed for robustness, and
safety training is being enhanced. Tata Motors (SA) (Pte) Ltd
completed a baseline risk assessment and training of all its
employees. The surveillance systemwas enhanced for improving
security. Tata Hispano Motors Carrocera SA implemented many
ergonomic projects to improve working conditions, making it
ahealthy, safeandproductivework-place.Work-placeenvironment
is regularly monitored for upkeep and tracking of progress.
FINANCE
During the year, the free cash flows for Tata Motors Group were
`
4,601 crores, post spend on capex, design and development
of
`
13,783 crores. Tata Motors Group’s borrowing as on March
31, 2012 stood at
`
47,149 crores (previous year
`
32,811 crores).
Cash and bank balances stood at
`
18,238 crores (previous year
`
11,410 crores).
Post spend on capex, design and development of
`
2,835 crores,
the free cash flows were
`
818 crores for standalone operations
of the Company. The borrowings of the Company as on March
31, 2012 stood at
`
15,881 crores (previous year
`
15,915 crores).
Cash and bank balances stood at
`
1,841 crores (previous year
`
2,429 crores).