Statutory Reports
Corporate Overview
69th Annual Report 2013-14
60
Financial Statements
The Company divested its investments in foreign subsidiary
companies – Tata Daewoo Commercial Vehicle Co Ltd, Korea, Tata
Motors (Thailand) Ltd, and Tata Motors (SA) (Proprietary) Ltd to TML
Holdings Pte Ltd, Singapore, a wholly owned subsidiary.
Due to significant reduction in volumes, the Company had to deploy
short term funds to support critical long term finance needs. The
Company is in the process of taking appropriate steps to correct this
and restructure the Balance Sheet.
At Jaguar Land Rover (as per IFRS), post spend on capex, design and
development of GB£2,680 million (
`
25,774.36 crores), the free cash
flows were GB£1,150 million (
`
11,059.90 crores) for FY 2013-14. The
borrowings of the Jaguar Land Rover as on March 31, 2014, stood at
GB£2,010 million (
`
19,330.77 crores) [previous year: GB£2,167million
(
`
17,791 crores)]. Cash and financial deposits stood at GB£3,458
million (
`
33,256.62 crores) [previous year: GB£2,847 million
(
`
23,373 crores)] resulting in negative net debt position. Additionally,
JLR has undrawn committed long termbank lines of GB£1,290million.
In December 2013, Jaguar Land Rover issued US$700 million Senior
Notes due 2018, at a coupon of 4.125% per annum, followed by an
issue of GB£400 million, at a coupon of 5.0% per annum in January
2014. The proceeds have been used for prepayment of high coupon
Senior Notes issued in 2011 of equivalent GB£750 million which was
callable in May 2014.
TML Holdings Pte Ltd, Singapore, a 100% subsidiary of the Company,
holding the investment in Jaguar Land Rover raised SG$350
million Senior Notes due 2018, in May 2013, at a coupon of 4.25%
per annum followed with an issue of syndicated loan facility of
US$250 million and SG$62.8 million due 2017 and US$210 million
and SG$114 million due 2019.
Tata Motors Finance Limited raised
`
75 crores by an issue of
unsecured, non-convertible, subordinated perpetual debentures
towards Tier 1 and Tier 2 Capital and
`
155.10 crores by an issue of
unsecured, non-convertible, subordinated debentures towards Tier 2
Capital in order to meet its growth strategy and improve its Capital
Adequacy ratio.
Tata Motors Group has undertaken and will continue to implement
suitable steps for raising long term resources to match fund
requirements and to optimise its loan maturity profile.
During the year, the Company’s rating for foreign currency borrowings
was retained with an improvement in the outlook by Standard &
Poors to “BB”/Stable and was retained at existing levels by Moodys
at “Ba3”/Stable. For borrowings in the local currency, the ratings was
revised upwards by Crisil to “AA”/Stable and was retained at existing
levels by ICRA at “AA-”/Positive. Post March 31, 2014, the ratings
was revised upwards by ICRA to “AA”/Stable. The Non-Convertible
Debentures rating by CARE was revised upwards to “AA+”/Stable.
During the year, Jaguar Land Rover’s rating was revised upwards by
Moodys to “Ba2” Stable and by Standard & Poors at “BB”/Stable.
For Tata Motors Finance, CRISIL has revised its rating outlook on
long-term debt instruments and bank facilities to ‘CRISIL “AA/ A+”/
Stable.
FIXED DEPOSITS
The Company has not accepted any public deposits during FY 2013-
14. There were no over dues on account of principal or interest on
public deposits other than the unclaimed deposits as at the year
end. The Company proposes to invite and accept Fixed Deposits
from the shareholders and the public in accordance with Sections 73
to 76 of the Companies Act 2013 read with Companies (Acceptance
of Deposits) Rules, 2014. Attention of the Members is invited to the
relevant item in the Notice of the Annual General Meeting and the
Explanatory Statement thereto.
INFORMATION TECHNOLOGY INITIATIVES
The Company’s business strategies are well supported by IT
proactively building the capabilities. The Company’s IT leverages
strong partnerships with product and services companies to support
business growth and innovation. This has enabled us to strengthen
our core technology capabilities.
The major highlights of IT initiatives at the Company are:
The Company commemorated 10 years of its path breaking
CRM solution, one of the largest in automotive industry with
4,000+ channel partners and more than 50,000+ users.
The Company played a key role in setting up AutoDX, a SIAM
ACMA initiative for electronic data interchange (EDI).
The Company is implementing cloud based employee
collaboration tools whichwill bring a diverse andmulti locational
workforce closer, enabling the One Team One Vision initiative.
