Statutory Reports
Corporate Overview
69th Annual Report 2013-14
86
Financial Statements
items, is amortised over the tenor of such monetary item. The
net exchange loss including on revaluation of foreign currency
borrowings, deposits and loans and amortisation, was
`
273.06
crores for the year (last year
`
263.12 crores).
c)
Employee separation cost –
To address the challenges,
business downturn, the Company had rolled out organization
wide cost optimization programme, which included employee
cost as important pillar, Accordingly, based on requests from
employees for early retirement, the Company has given early
retirement with a lump sum amount of
`
47.28 crores to
various employees.
d)
During FY 2013-14, the Company has provided
`
17.52 crores
as diminution in value of investment for a subsidiary Company,
Tata Motors (Thailand) Ltd based on valuation received while
divesting the investments to TML Holdings, Singapore.
Loss before Tax
of
`
1,025.80 crores represented a steep reduction
of
`
1,200.73 crores from Profit before tax of
`
174.93 crores in FY
2012-13. The loss was mainly attributable to lower M&HCV and SCV
volumes and severe contraction of passenger car volumes, increase
in variable marketing expenses, resulting in lower operating margin,
under absorption of fixed costs. The loss from operation was
partially offset by dividend form subsidiary companies and profit
on divestment of foreign subsidiaries.
Tax expenses -
There was tax credit of
`
1,360.32 crores as compared
to
`
126.88 for FY 2012-13. The tax expenses was after considering
the tax benefit on R&D expenditure, provision of disallowances and
tax treatment of foreign exchange differences.
Profit After Tax (PAT)
increased to
`
334.52 crores from
`
301.81
crores in FY 2012-13. Consequently, basic Earnings Per Share (EPS)
increased to
`
1.03 as compared to
`
0.93 for the previous year for
Ordinary Shares and to
`
1.13 as compared to
`
1.03 for ‘A’ Ordinary
Shares for the previous year.
Standalone Balance Sheet
Shareholders’ funds
were
`
19,176.65 crores and
`
19,134.84 crores
as at March 31, 2014 and 2013, respectively.
Reserves
increased to
`
18,532.87crores as at March 31, 2014 from
`
18,496.77 crores as at March 31, 2013, reflecting an increase of
`
36.10 crores
The PAT for the current year of
`
334.52 crores added to the
Profit & Loss account and
`
354.52 crores (net) were added to
the Securities Premium account mainly by way of premium on
shares issued on conversion of Foreign Currency Convertible
Notes (FCCN).
The above was offset by proposed dividend (including tax
thereon) of
`
741.96 crores.
Borrowings:
(
`
in crores)
As at March
31, 2014
As at March
31, 2013
Long term borrowings
9,746.45
8,051.78
Short term borrowings
4,769.08
6,216.91
Current maturities of
long term borrowings
537.27
2,530.26
Total
15,052.80
16,798.95
During FY 2013-14, the Company repaid 2% Non-Convertible
Debenture (2014) of
`
2,458.05 crores (including premium) and
fixed deposits from public and shareholders of
`
362.19 crores.
Foreign Currency Convertible Notes (FCCN) was fully converted
to Ordinary shares. This was partly offset by Non-Convertible
debentures taken during year of
`
1,100 crores. Reduction in
short term borrowings comprises of reduction in commercial
paper by
`
1,193.12 crores, Loans and advances from subsidiaries
and associates by
`
319.60 crores, net decrease in loan, cash
credit, overdraft accounts by
`
436.08 crores, Foreign Currency
Non Repatriable Borrowings (FCNR(B)) by
`
689.42 crores. These
were offset by increase in the loan from banks by
`
1,600 crores
and Buyer’s line of credit by
`
187.63 crores The debt/equity ratio
after considering cash / investment in mutual fund was 0.77 as
compared to 0.85 as at March 31, 2013.
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 increase the long term funds.
Trade payables
were
`
9,672.36 crores as at March 31, 2014 as
