87
Notice
Directors’ Report
(69-103)
Management Discussion & Analysis
Corporate Governance
Secretarial Audit Report
compared to
`
8,455.02 crores as at March 31, 2013. There has
been increase in acceptances due to increase in the term.
Provisions (current and non-current)
as at March 31, 2014 and
2013 were
`
2,708.11crores and
`
2,200.77 crores, respectively. The
provisions are mainly towards warranty, employee retirement
benefits, delinquency and proposed dividends. The increase is
mainly in the provision for delinquency by
`
680.37 crores.
Fixed Assets:
The tangible assets (net of depreciation and
including capital work in progress) increased marginally from
`
13,795.55 crores as at March 31, 2013 to
`
13,850.35 crores. The
intangible assets (net of amortisation, including the projects under
development), increased from
`
6,412.99 crores as at March 31,
2013 to
`
7,745.29 crores. The intangible assets under development
were
`
4,638.22 crores as at March 31, 2014, which relate to new
products planned in the future.
Investments (Current + Non-current)
decreased to
`
18,458.42
crores as at March 31, 2014 as compared to
`
19,934.39 crores as at
March 31, 2013.
There was redemption of 6.25% Cumulative Redeemable
Preference Shares of US$ 100 each at par of TML Holdings
Pte Ltd, Singapore, of
`
1,403.26crores and sale of Mutual
funds of
`
359.42 crores. The Company has also divested
Equity shares of certain foreign subsidiary companies to
TML Holdings Pte Ltd, Singapore of
`
463.11 crores.
This was partly offset by increase in investments in subsidiaries
and associates of
`
706.72 crores (Tata Motors Finance Ltd
`
300 crores, Tata Motors European Technical Centre Plc
`
13.07
crores, PT Tata Motors, Indonesia of
`
53.65 crores, Fiat India
Automobiles Ltd
`
325 crores and Concorde Motors (India) Ltd.
`
15 crores).
Inventories
stood at
`
3,862.53 crores as compared to
`
4,455.03 crores as at March 31, 2013. Though the Company
achieved reduction in inventory of
`
592.50 crores, the total
inventory has increased to 44 days of sales as compared to 37
days in last year.
Trade Receivables (net of allowance for doubtful debts)
were
`
1,216.70 crores as at March 31, 2014, as compared to
`
1,818.04 crores as at March 31, 2013. The reduction reflects
lower volumes and steps taken by the Company to control
the credit. The receivable represented 16 days as at March 31,
2014, compared to 18 days as at March 31, 2013. However, the
amount outstanding for more than six months (gross) has gone
up to
`
786.21 crores as at March 31, 2014 from
`
682.82 crores
as at March 31, 2013. These represented dues from Government
owned transport companies and some of the dealers. The
overdues are monitored and the Company has taken steps
to recover these dues. However, based on the Company’s
assessment on non-recoverability of these overdues, these have
been provided and accordingly the allowances for doubtful debts
were
`
511.36 crores as at March 31, 2014 against
`
240.59 crores
as at March 31, 2013.
Cash and bank balances
were
`
226.15 crores as at March 31, 2014
compared to
`
462.86 crores as at March 31, 2013. The decrease was
due to lower volumes.
Standalone Cash Flow
(
`
in crores)
FY 2013-14
FY 2012-13 Change
Net Cash from Operating
Activities
2,463.46
2,258.44
205.02
Profit for the year
334.52
301.81
Adjustment for cash flow from
operations
(1,273.34)
1,346.51
Change in working capital
3,458.34
502.79
Direct taxes paid / (credit)(net)
(56.06)
107.33
Net Cash from Investing
Activities
2,552.91
991.50
1,561.41
Payments for fixed assets (net)
(3,094.05)
(2,588.44)
Proceeds from sale of a division
-
110.00
Net investments, short term
deposit, margin money and
loans given
635.88
403.42
Sale
/
redemption
of
investments in subsidiary /
associate companies
3,978.48
1,399.95
