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F-13
1. Background and operations
Tata Motors Limited referred to as (“the Company”or“Tata Motors”), designs, manufactures and sells a wide range of automotive vehicles. The Company also
manufactures engines for industrial and marine applications.
The Company is a public limited Company incorporated and domiciled in India and has its registered office at Mumbai, India. As at March 31, 2017, Tata Sons
Limited, together with its subsidiaries owns 31.69 % of the Ordinary shares and 0.09 % of ‘A’Ordinary shares of the Company, and has the ability to significantly
influence the Company’s operation.
The standalone financial statements were approved by the Board of Directors and authorized for issue on May 23, 2017.
2. Significant accounting policies
(a)
Statement of compliance
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as “Ind
AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1, 2016. Previous period figures have been restated to Ind
AS. In accordance with Ind AS 101 First-time Adoption of Indian Accounting Standards, the Company has presented a reconciliation from the presentation
of financial statements under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (“Previous GAAP”) to Ind AS of
Shareholders’equity as at March 31, 2016 and April 1, 2015 and of the Total comprehensive income for the year ended March 31, 2016.
These financial statements have been prepared in accordance with Ind AS as notified under the Companies (Indian Accounting Standards) Rules, 2015 read
with Section 133 of the Companies Act, 2013 (the “Act”).
(b)
Basis of preparation
The financial statements have been prepared on historical cost basis except for certain financial instruments measured at fair value at the end of each
reporting period as explained in the accounting policies below.
Joint operations
Certain of the Company’s activities, are conducted through joint operations, which are joint arrangements whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. As per Ind AS 111 - Joint arrangements, in its separate
financial statements, the Company being a joint operator has recognised its share of the assets, liabilities, income and expenses of these joint operations
incurred jointly with the other partners, along with its share of income from the sale of the output and any assets, liabilities and expenses that it has incurred
in relation to the joint operation.
Although not required by Ind AS’s, the Company has provided in note 46 additional information of Tata Motors Limited on a standalone basis excluding its
interest in its two Joint Operations viz. Tata Cummins Private Limited and Fiat India Automobiles Private Limited.
(c)
Use of estimates and judgments
The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions, that affect the
application of accounting policies and the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of these
financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most
significant effect on the amounts recognized in the financial statements are included in following notes :
i) Note 3 - Property, plant and equipment
ii) Note 29 - Recoverability/recognition of deferred tax assets
iii) Note 27 and 28 - Provision for product warranty
iv) Note 45 - Assets and obligations relating to employee benefits
(d)
Revenue recognition
Revenue is measured at fair value of consideration received or receivable.
(i)
Sale of products
The Company recognizes revenues on the sale of products, net of discounts, sales incentives, customer bonuses and rebates granted, when
products are delivered to dealers or when delivered to a carrier for export sales, which is when title and risks and rewards of ownership pass to
the customer. Sale of products includes export and other recurring and non-recurring incentives from governments (referred to as “incentives”).
Revenues are recognized when collectability of the resulting receivable is reasonably assured.
NOTES FORMING PART OF FINANCIAL STATEMENTS