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Sixty-Seventh Annual Report 2011-2012
Due to steep depreciation of rupee against all major currencies,
the exchange loss (net of capitalization / deferment) including
on revaluation of Foreign Currency Borrowings, Deposits
and Loans of
`
654.11 crores was recorded as compared to
gain of
`
231.01 crores in FY 2010-11 (mainly at Tata Motors),
resulting in a swing of
`
885.12 crores. Goodwill Impairment
and other costs are in respect of subsidiary companies,
triggered by continuous underperformance, mainly
attributed by challenging market conditions in which the
subsidiaries operate.
ConsolidatedProfit BeforeTax (PBT)
increased to
`
13,533.87
crores in FY 2011-12 compared to
`
10,437.17 crores in
FY 2010-11, representing an increase of
`
3,096.70 crores,
mainly attributable to a remarkable improvement in the
performance of the Jaguar Land Rover business.
Tax expense
represents a net credit of
`
40.04 crores
in FY 2011-12 compared to net charge of
`
1,216.38 crores
in FY 2010-11. During the year, Jaguar Land Rover accounted
for credit of GB£ 225 million (
`
1,793.66 crores) in respect of
carried forward past tax losses, in view of certainty of utilising
these against future profits. The tax expense (without
considering the tax credit for losses) was lower due to tax
benefits of R & D expenses at Tata Motors, which are eligible
for weighted deduction and tax treatment of exchange loss.
The tax expense is not comparable with the profit before tax,
since it is consolidated on a line-by-line addition for each
subsidiary company and no tax effect is recorded in respect of
consolidation adjustments.
Consolidated Profit After Tax
increased to
`
13,516.50 crores
compared to
`
9,273.62 crores in FY 2010-11, after considering
the profit from associate companies and share of minority.
ConsolidatedBalanceSheet
The assets and liabilities increased on account of foreign
currency translation impact mainly in respect of Jagaur Land
Rover.
Shareholders’ fund
was
`
33,149.93 crores and
`
19,171.47
crores as at March 31, 2012 and 2011, respectively.
Reserves
increased from
`
18,533.76 crores as at March 31,
2011 to
`
32,515.18 crores as of March 31, 2012, increase mainly
due to strong performance on a consolidated basis as
explained above. The other major changes were translation
reserves credit of
`
2,363.59 crores and pension reserves debit
of
`
128.12 crores (net).
Borrowings:
(
`
in crores)
As at
March 31,
2012
As at
March 31,
2011
Long term borrowings
27,962.48 17,256.00
Short term borrowings
10,741.59 13,106.15
Current maturities of long term
borrowings
8,444.89
2,448.40
Total
47,148.96 32,804.02
Long term borrowings including the current portion increased
by
`
16,702.97 crores to
`
36,407.37 crores. During the year, Jaguar
Land Rover issued GB£ 1,500 million (
`
12,327.19 crores)
equivalent Senior Notes. The Company has taken ECB loan of
US$ 500 million (
`
2,544.13 crores) and Tata Motors Finance
Ltd has issued zero coupon debentures of
`
826.00 crores
maturing by FY 2015-16.
The increase in current maturities of Long term borrowings is
attributable to Convertible Alternative Reference Securities
(CARS), which will be due for redemption on July 11, 2012
and fixed deposits.
Fixed deposits from public and shareholders (unsecured)
decreased by
`
1,231.09 crores, whereas term loan from banks
increased by
`
4,750.43 crores. Certain loans from banks
availed by some of the subsidiary companies carry covenants
restricting repayment of intra group loans and payment
of dividend.
Other Long term liabilities
were
`
2,458.58 crores as at
March 31, 2012 as compared to
`
2,292.72 crores as at March
31, 2011, and include
`
1,577.28 crores premium on
redemption of non convertible debentures as at
March 31, 2012.
Trade payables
were
`
36,686.32 crores as at March 31, 2012,
as compared to
`
27,903.06 crores as at March 31, 2011. The
increase is attributable to volumes. Reduction in acceptances
is due to decrease in tenure from 89 days to 34 days by using
our own funds for supplier payments. This has enabled us to
lower discounting cost.
Provisions (current and non-current)
are towards warranty,
employee benefit schemes, premium on redemption of FCCN
and proposed dividend. The details are as follows: