Statutory Reports
Corporate Overview
69th Annual Report 2013-14
58
Financial Statements
over the previous year by almost 24%. The
Super Ace
vehicles that
are currently sold as CBU imports from India showed encouraging
signs of acceptability in the market. TMTL continued to expand its
dealer network in order to cover most of the provinces in the country.
TMTL also dispatched the first lot of test vehicles to Malaysia where
regular exports of Xenon are planned beginning FY 2014-15.
Tata Motors (SA) (PTY) Limited
Tata Motors (SA) (Pty) Ltd (TMSA) sold 821 chassis for the South Africa
market in FY 2013-14. TMSA homologated three new models in the
LCV category, including a bus chassis LP713 for the first time. It also
collaborated with TDCV to assemble a pilot lot of 6 chassis of a tractor
truck model with the objective of expanding the TATA presence in
the fastest growing (extra Heavy) segment of commercial vehicles in
South Africa.
Tata Motors Finance Limited
The vehicle financing activity is being carried under the brand “Tata
Motors Finance” of Tata Motors Finance Limited (TMFL) – a wholly
owned subsidiary company.
The sluggish macroeconomic environment and consequent lower
demand of all Commercial and Passenger Vehicles led to a significant
decline in disbursements. Total disbursements for the year were at
`
8,768 crores - 22% lower than disbursements of
`
11,180 crores in
FY 2012-13. A total of 1,57,886 vehicles were financed representing a
decline of 38% over the previous year. The disbursals for commercial
vehicle were
`
7,504 crores (1,23,989 vehicles) in FY 2013-14 compared
to
`
8,815 crores (1,83,514 vehicles) for FY 2012-13. For passenger
cars, disbursals were
`
1,214 crores (32,637 vehicles) in FY 2013-14
compared to
`
2,364 crores (70,563 vehicles) in the previous year. The
overall market share in terms of the Tata vehicle unit sales in India
financed by Tata Motors Finance declined from 33% to 30%.
With a view to de-risk the portfolio and explore additional sources
of revenue, the Used Vehicle Finance business was re-launched
by seeding the business in select geographies during the year.
Disbursements achieved under refinance were at
`
50 crores (1,260
vehicles) during the current year as against
`
2 crores (9 vehicles) in
FY 2012-13.
TMFL continued to expand its reach in the market place by
opening a number of branches including limited services
branches exclusively in Tier 2 and 3 towns. This has also helped in
reducing the turn-around times to improve customer satisfaction.
TMFL has further enhanced its “Office of the Customer initiative”
and is confident that these investments will pay rich dividends
through significantly increased interactions/relations with its
customers and dealers. With a highly motivated employee
workforce, significantly greater customer orientation and an
increased branch network/ field infrastructure, TMFL is poised
for significant, sustainable growth and is confident that it would
deliver on its vision for the future.
HUMAN RESOURCES
The Tata Motors Group employed 66,593 permanent employees
(previous year: 62,873 employees) as of the year end, out of which
59,535 employees were engaged in automotive operations. The
Company employed 29,566 permanent employees (previous
year: 30,334 employees) as of the year end. The Tata Motors Group
has generally enjoyed cordial relations with its employees and
workers.
All employees in India belonging to the operative grades are
members of labour unions except at our Sanand and Dharwad
plants. All the wage agreements have been renewed in a timely
manner and are all valid and subsisting. Operatives ‘and Unions‘
support in implementation of reforms that impact quality, cost
erosion and improvements in productivity across all locations
which is commendable.
Safety and Health – Performance and Initiatives
The Company provides a safe and healthy workplace for its
employees by establishing the right safety culture across the
organization. The senior leadership is fully committed to the ultimate
Goal of zero injury to its employees and all stakeholders who are
associated with the Company’s operations. Emphasis is laid on
creating a participatory safety governance model. Safety and Health
Environment (SHE) Councils have been formed for both Commercial
Vehicle business and Passenger Vehicle business. The Company
has come up with Safety Manual for Fully Built Vehicle (FBV)
Application Vendors. The Lost Time Injury Frequency Rate (LTIFR)
for this year is 0.39%, a reduction of 44% over FY 2012-13. Training
and awareness among all concerned has been a key element of
the strategic initiative. 5,07,738 man-hours of training have been
spent on Safety. The Company has launched a campaign
‘i-drive
safe’ - A Tata Motors initiative on building a safe driving culture
and also training of driver employees with an awareness that the
main risk is related to road safety and thereby ensured safe driving
