83
Notice
Directors’ Report
(69-103)
Management Discussion & Analysis
Corporate Governance
Secretarial Audit Report
Net decrease in short term borrowings of
`
2,466.25
crores as compared to increase of
`
1,846.66 crores.
As of March 31, 2014, Tata Motors Group borrowings (including
short term debt) were
`
60,642.28 crores compared with
`
50,715.71
crores as of March 31, 2013.
The Company believes that it has sufficient resources available
to meet planned capital requirements. However, the sources of
funding could be adversely affected by an economic slowdown
as was witnessed in FY 2008-09 or other macroeconomic factors
in India and abroad such as Europe and markets where the
Company is present such as China. A decrease in the demand
for the Company products and services could lead to an inability
to obtain funds from external sources on acceptable terms or in
a timely manner. In order to refinance the Company acquisition
related borrowings and for supporting long term fund needs, the
Company continued to raise funds in FY 2012-13 and FY 2013-14,
through issue of various debt securities described below.
In FY 2012-13, the Company issued rated, listed, unsecured non-
convertible debentures of
`
2,100 crores with maturities of 2-7
years as a step to raise long term resources and optimize the loan
maturity profile.
In January 2013, JLR issued US$ 500 million Senior Notes due 2023,
at a coupon of 5.625% per annum. The proceeds will be used for
general corporate purposes, including, to support ongoing growth
and capital spending plans. The notes are callable at a premium
for the present value of future interest rates, if called before a
specified date and thereafter are callable at fixed premiums.
During FY 2012-13, TMFL raised
`
90.40 crores by issue of
Subordinated Unsecured, Non-convertible debentures towards
Tier 2 Capital and
`
100 crores was raised by issue of Subordinated
Unsecured Non-convertible Perpetual debentures towards Tier
I Capital to meet its growth strategy and improve its capital
adequacy ratio.
During FY 2013-14, the Company issued rated, listed, unsecured,
non-convertible debentures of
`
1,100 crores,
During FY 2013-14, JLR issued US$ 700 million 4.125% Senior
Notes, due 2018 and GBP 400 million 5.0% Senior Notes, due
2022. The net proceeds from these issues have been utilised to
refinance existing debt of GBP 750 million equivalent Senior Notes
issued in May 2011.
During FY 2013-14, TML Holdings Pte Singapore issued SGD
350 million 4.25% Senior Notes, due 2018. The net proceeds
from these issues have been utilised for redemption of
preference shares issued to the Company and for general
corporate purposes. TML Holdings Pte Singapore further raised
equivalent US$ 600 million (US$ 460 million and SG$ 176.8
million) syndicated loan facility with equivalent US$ 300 million
(US $ 250 million and SG$ 62.8 million) maturing in November
2017 and equivalent US$ 300 million (US$ 210 million and SG$
114 million) in November 2019. The net proceeds from these
have been utilised for acquiring certain offshore manufacturing
subsidiaries/joint ventures from the Company at fair value and
for general corporate purposes.
The Tata Motors Group fund its short-term working capital
requirements with cash generated from operations, overdraft
facilities with banks, short and medium term borrowings from
lending institutions, banks and commercial paper. The maturities
of these short and medium term borrowings and debentures
are generally matched to particular cash flow requirements. The
working capital limits are
`
14,000 crores from banks in India
as at March 31, 2014. The working capital limits are secured by
hypothecation of certain existing current assets of the Company.
The working capital limits are renewed annually.
JLR established 3-5 year committed Revolving Credit Facility from
a syndicate of more than 20 banks. The outstanding balance under
the facility which is completely undrawn, is GB£1,290 million as of
March 31, 2014.
The Tata Motors Group cash and bank balances were
`
29,711.79
crores as at March 31, 2014, as compared to
`
21,114.82 crores as
at March 31, 2013. These enable the Group to cater to business
needs in the event of changes in market conditions.
