127
(Referred to in paragraph 1 under “Report on Other Legal and Regulatory Requirements” section of our report of even date to the Members of Tata
Motors Limited)
(i)
Having regard to the nature of the Company’s business / activities / results during the year, clauses (xiii) and (xiv) of paragraph 4 of the Order are not
applicable to the Company.
(ii)
In respect of its fixed assets:
(a)
The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b)
The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our
opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us,
no material discrepancies were noticed on such verification;
(c)
The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such
disposal has, in our opinion, not affected the going concern status of the Company.
(iii)
In respect of its inventories:
(a)
As explained to us, the stock of finished goods and work-in-progress in the Company’s custody have been physically verified by the Management
as at the end of the financial year, before the year-end or after the year-end, other than a significant part of the spare parts held for sale, and raw
materials in the Company’s custody for both of which, there is a perpetual inventory system and a substantial portion of the stocks have been
verified during the year. In our opinion, the frequency of verification is reasonable. In case of materials and spare parts held for sale lying with the
third parties, certificates confirming stocks have been received periodically for stocks held during the year and for a substantial portion of such
stocks held at the year-end;
(b)
In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by
the Management were reasonable and adequate in relation to the size of the Company and the nature of its business;
(c)
In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification.
(iv)
In respect of loans, secured or unsecured, granted by the Company to companies, firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956, according to the information and explanations given to us:
(a)
The Company has granted unsecured loans aggregating
`
146.28 crores to two parties during the year. At the year-end, the outstanding balances
of such loans granted aggregated
`
562.69 crores (number of parties - three) and the maximum amount involved during the year was
`
875.18
crores (number of parties - four).
(b)
The rate of interest and other terms and conditions of such loans are, in our opinion,
prima facie
not prejudicial to the interests of the Company
having regard to the business relationship with the companies to whom loans have been granted.
(c)
The receipts of principal amounts have been as per stipulations. However, there are delays in receipt of interest.
(d)
In respect of overdue interest amounts of over Rs. 1 lakh remaining outstanding as at the year-end, as explained to us, Management has taken
reasonable steps for recovery of the interest amount.
In respect of loans, secured or unsecured, taken by the Company from companies, firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956, according to the information and explanations given to us:
The Company has not taken any loans from such parties during the year accordingly clauses (iii) (b) to (iii) (d) of Paragraph 4 of the Companies (Auditor’s
Report) Order, 2003 are not applicable to the Company.
(v)
In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of
special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods
and services. During the course of our audit, we have not observed any major weakness in such internal control system.
(vi)
In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our
knowledge and belief and according to the information and explanations given to us:
(a)
The particulars of contracts or arrangements referred to in Section 301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b)
Where each of such transaction (excluding loans reported under paragraph (iv) above) is in excess of
`
5 lakhs in respect of any party, having
regard to our comments in paragraph (v) above, the transactions have been made at prices which are
prima facie
reasonable having regard to the
prevailing market prices at the relevant time, other than certain purchases which are of a special nature for which comparable quotations are not
available and in respect of which we are, therefore, unable to comment if the transactions have been carried out at prices having regard to the
prevailing market prices at the relevant time.
ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT
Independent Auditors’Report
Balance Sheet
(126-129)
Statement of Profit and Loss
Cash Flow Statement
Notes to Accounts
