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F-5
(Referred to in paragraph 2 under “Report on Other Legal and Regulatory Requirements” section of our report of even date to the Members of Tata
Motors Limited)
(i)
In respect of its property, plant and equipment:
(a)
The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and
equipment.
(b)
The property, plant and equipment were physically verified during the year by the Management in accordance with a regular programme of
verification which, in our opinion, provides for physical verification of all the property, plant and equipment at reasonable intervals. According to
the information and explanations given to us, no material discrepancies were noticed on such verification.
(c)
According to the information and explanations given to us, the records examined by us and based on the examination of the registered sale deed
/transfer deed /conveyance deed /confirmation from custodians /court orders approving schemes of arrangements /amalgamations provided to
us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the
Company as at the balance sheet date. In respect of immovable properties that have been taken on lease and disclosed as property, plant and
equipment in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii)
As explained to us, the stock of finished goods and work-in-progress in the Company’s custody have been physically verified by the Management as at
the end of the financial year, before the year-end or after the year-end, other than a significant part of the spare parts held for sale, and raw materials in
the Company’s custody for both of which, there is a perpetual inventory system and a substantial portion of the stocks have been verified during the year.
In our opinion, the frequency of verification is reasonable. In case of materials and spare parts held for sale lying with third parties, certificates confirming
stocks have been received periodically for stocks held during the year and for a substantial portion of such stocks held at the year-end.
(iii)
According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms, or other parties
covered in the Register maintained under Section 189 of the Companies Act, 2013, in respect of which:
(a)
The terms and conditions of the grant of such loans are, in our opinion,
prima facie
, not prejudicial to the Company’s interest.
(b)
The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest
have been regular as per stipulations.
(c)
There is no amount overdue for more than 90 days at the balance sheet date.
(iv)
In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186
of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v)
According to the information and explanations given to us, the Company has not accepted any deposit during the year. In respect of unclaimed deposits,
the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013.
(vi)
The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013 in respect of its
products. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (cost records and audit) Rules, 2014 and
amended Companies (cost records and audit) Amendment Rules, 2016 as prescribed by the Central Government under sub-section (1) of Section 148 of
the Companies Act, 2013, and are of the opinion that
prima facie
, the prescribed cost records have been made and maintained. We have, however, not
made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii)
According to the information and explanations given to us, in respect of statutory dues:
(a)
The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees’State Insurance, Income-
tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities. We
are informed by the Company that the Employees’ State Insurance Act, 1948 is applicable only to certain locations of the Company. With regard
to the contribution under the Employees’ Deposit Linked Insurance Scheme, 1976 (the Scheme), we are informed that the Company has sought
exemption from making contribution to the Scheme since it has its own Life Cover Scheme. The Company has made an application on March 28,
2017 seeking an extension of exemption from contribution to the Scheme for a period of 3 years which is awaited.
ANNEXURE ‘‘B’’ TO THE INDEPENDENT AUDITOR’S REPORT