187
NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
Notes :
(2)
Nature of Security (on loans including interest accrued thereon) :
(a)
During the year 2009-10, the Company issued 2% secured non-convertible credit enhanced rupee debentures in four tranches, having tenor upto seven years,
aggregating
`
4,200 crores on a private placement basis. These are secured by a second charge in favour of Vijaya Bank, Debenture Trustee and first ranking pari passu
charge in favour of State Bank of India as security trustee on behalf of the guarantors, by way of English mortgage of the Company’s lands, freehold and leasehold,
together with all buildings, constructions and immovable and movable properties situated at Chinchwad, Pimpri, Chikhali and Maval in Pune District in the State of
Maharashtra and plant and machinery and other movable assets situated at Pantnagar in the State of Uttarakhand and at Jamshedpur in the State of Jharkhand. As at
March 31, 2014, the outstanding is
`
1,250 crores.
(b)
Rated, Listed, Secured, 9.95% Coupon, Non-Convertible Debentures amounting to
`
200 crores and 10.25% Coupon, Non-Convertible Debentures amounting to
`
500
crores are secured by a pari passu charge by way of an English mortgage of the Company’s freehold land together with immovable properties, plant and machinery and
other movable assets (excluding stock and book debts) situated at Sanand in the State of Gujarat.
(c)
Privately placed non-convertible debentures amounting to
`
2,365.43 crores are fully secured by :
(i)
First charge on residential flat of Tata Motors Finance Limited (TMFL), a subsidiary of the Company
(ii)
Pari - passu charge is created with the security trustee for loans from banks on:
- All receivables of TMFL arising out of loan and trade advances,
- All book debts of TMFL arising out of loan and trade advances.
- Receivables from Senior and Junior pass through certificates of TMFL.
(iii)
First charge on secured / unsecured loans given by TMFL as identified from time to time and accepted by the debenture trustee.
(iv)
Any other security as identified by TMFL and acceptable to the debenture trustee.
(d)
Loans from Banks are secured by hypothecation of existing current assets of the Company viz. stock of raw materials, stock in process, semi-finished goods, stores and
spares not relating to plant and machinery (consumable stores and spares), bills receivable and book debts including receivable from hire purchase / leasing and all
other moveable current assets except cash and bank balances, loans and advances of the Company both present and future.
(e)
Term loans from banks amounting to
`
3,765 crores are secured by a pari passu charge in favour of the security trustee on receivables and book debts arising out of loans
and advances and such current assets as may be identified by TMFL from time to time and accepted by the security trustee.
(f)
Term loan from others carries simple interest at the rate of 0.10 % p.a. and is secured by a subservient charge (creation of charge is under process) against the Company’s
freehold land together with immovable properties, plant and machinery and other movable assets (excluding stock and book debts) situated at Sanand plant in the State
of Gujarat.
(3)
Foreign Currency Convertible Notes (FCCN) :
The Company has issued the FCCN which are convertible into Ordinary shares or ADSs. The particulars, terms of issue and the status of conversion as at March 31, 2014 are given
below :
Issue
4% FCCN (due 2014)*
Issued on
October 15, 2009
Issue Amount (in INR at the time of the issue)
US $ 375 million
(
`
1,794.19 crores)
Face Value
US $ 100,000
Conversion Price per share
at fixed exchange rate
`
623.88
US $ 1 =
`
46.28
Reset Conversion Price (Due to Rights Issue,
GDS Issue and subdivision of shares)
`
120.12
US $ 1 =
`
46.28
Exercise Period
November 25, 2009 (for conversion into shares or GDSs) and
October 15, 2010 (for conversion into ADSs) to October 9, 2014
Early redemption at the option of the Company
subject to certain conditions
i) any time on or after October 15, 2012 (in whole but not in
part) at our option
or
ii) any time (in whole but not in part) in the event of certain
changes affecting taxation in India
Redeemable on
October 16, 2014
Redemption percentage of the Principal Amount
108.505%
Amount converted
US $ 375 million
Aggregate conversion into ADRs (in terms of equivalent shares) and Shares.
14,21,87,437
Aggregate Notes Redeemed
Nil
Aggregate Notes Bought Back
Nil
Notes Outstanding as at March 31, 2014
Nil
Amount outstanding as at March 31, 2014
Nil
Aggregate amount of shares that could be issued on conversion of outstanding notes
Nil
* All FCCNs were fully converted into Ordinary shares or ADSs as at March 31, 2014.
Independent Auditors’Report
Balance Sheet
(176-206)
Statement of Profit and Loss
Cash Flow Statement
Notes to Accounts
