Statutory Reports
Corporate Overview
69th Annual Report 2013-14
176
Financial Statements
(Consolidated)
1.
Basis of Consolidation and Significant Accounting Policies
(I)
Basis of consolidation:
The Consolidated Financial Statements relate to Tata Motors Limited (the Company), its subsidiary companies, joint ventures and associates. The Company
and its subsidiaries constitute the Group.
(a)
Basis of preparation
The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted
accounting principles, Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 (the“Act”) and the relevant provisions thereof,
which continue to be applicable in respect of Section 133 of Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of
the Ministry of Corporate Affairs.
(b)
Use of estimates
The preparation of financial statements requires management to make judgments, estimates and assumptions, that affect the application ofaccounting
policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent liabilities at the date of these financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and future periods affected.
(c)
Principles of consolidation:
The consolidated financial statements have been prepared on the following basis:
i.
The financial statements of the subsidiary companies / joint ventures / associates used in the consolidation are drawn upto the same reporting
date as of the Company i.e. year ended March 31, 2014.
ii.
The financial statements of the Company and its subsidiary companies have been combined on a line-by-line basis by adding together like
items of assets, liabilities, income and expenses. The intra-group balances and intra-group transactions and unrealised profits have been fully
eliminated.
iii.
The Consolidated Financial Statements include the share of profit / loss of the associate companies which has been accounted as per the ‘Equity
method’, and accordingly, the share of profit / loss of each of the associate companies (the loss being restricted to the cost of investment) has
been added to / deducted from the cost of investments.
An associate is an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint venture of the investor.
iv.
The financial statements of the joint venture companies have been combined by using proportionate consolidation method and accordingly,
venturer’s share of each of the assets, liabilities, income and expenses of jointly controlled entity is reported as separate line items in the
Consolidated Financial Statements.
v.
The excess of cost to the Company of its investments in the subsidiary companies / joint ventures over its share of equity of the subsidiary
companies / joint ventures, at the dates on which the investments in the subsidiary companies / joint ventures are made, is recognised as
‘Goodwill’ being an asset in the Consolidated Financial Statements. Alternatively, where the share of equity in the subsidiary companies / joint
ventures as on the date of investment is in excess of cost of investment of the Company, it is recognised as ‘Capital Reserve’ and shown under
the head ‘Reserves and Surplus’, in the Consolidated Financial Statements.
vi.
Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at
the dates on which investments are made by the Company in the subsidiary companies and further movements in their share in the equity,
subsequent to the dates of investments as stated above.
(d)
The following subsidiary companies are considered in the Consolidated Financial Statements:
%of holding either directly or
through subsidiaries
Sr
No.
Name of the Subsidiary Company
Country of
incorporation
As at
March 31, 2014
As at
March 31, 2013
Direct Subsidiaries
1
TML Drivelines Ltd
India
100
100
2
TAL Manufacturing Solutions Ltd
India
100
100
3
Sheba Properties Ltd
India
100
100
4
Concorde Motors (India) Ltd
India
100
100
5
Tata Motors Insurance Broking & Advisory Services Ltd
India
100
100
6
Tata Motors European Technical Centre Plc
UK
100
100
7
Tata Technologies Ltd
India
72.32
72.32
8
Tata Motors Finance Ltd
India
100
100
9
Tata Marcopolo Motors Ltd
India
51
51
10 TML Holdings Pte Ltd, Singapore
Singapore
100
100
11 TML Distribution Company Ltd
India
100
100
12 Tata Hispano Motors Carrocera S.A
Spain
100
100
13 Trilix S.r.l
Italy
80
80
14 Tata Precision Industries Pte Ltd
Singapore
78.39
78.39
15 PT Tata Motors Indonesia
Indonesia
100
100
Indirect Subsidiaries *
16 Tata Daewoo Commercial Vehicle Co. Ltd
South Korea
100
100
17 Tata Motors (Thailand) Ltd
Thailand
94.36
90.82
18 Tata Motors (SA) (Proprietary) Ltd
South Africa
60
60
19 Tata Technologies (Thailand) Ltd
Thailand
72.32
72.32
20 Tata Technologies Pte. Ltd, Singapore
Singapore
72.32
72.32
21 INCAT International Plc
UK
72.32
72.32
22 Tata Technologies Europe Ltd
UK
72.32
72.32
NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
