Tata Motors Ltd


BSE: 500570 | NSE: TATAMOTORS | ISIN: INE155A01022 
Market Cap: [Rs.Cr.] 137,965 | Face Value: [Rs.] 2
Industry: Automobiles - LCVs / HCVs

 Discuss this stock

Auditor's Report

INDEPENDENT AUDITORS

TO THE MEMBERS OF TATA MOTORS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of TATA MOTORS LIMITED ("theCompany"), which comprise the Balance Sheet as at March 31, 2013, the Profit and LossStatement and the Cash Flow Statement for the year then ended, and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position, financial performanceand cash flows of the Company in accordance with the Accounting Standards referred to inSection 211(3C) of the Companies Act, 1956 ("the Act") and in accordance withthe accounting principles generally accepted in India. This responsibility includes thedesign, implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error. In making those risk assessments, theauditor considers internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal control. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Management, as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us, the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2013;

(b) in the case of the Profit and Loss Statement, of the profit of the Company for theyear ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows of the Company for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order")issued by the Central Government in terms of Section 227(4A) of the Act, we give in theAnnexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet, the Profit and Loss Statement, and the Cash Flow Statement dealtwith by this report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, the Profit and Loss Statement, and the Cash FlowStatement comply with the Accounting Standards referred to in Section 211(3C) of the Act.

(e) On the basis of the written representations received from the directors as on March31, 2013 taken on record by the Board of Directors, none of the directors is disqualifiedas on March 31, 2013 from being appointed as a director in terms of Section 274(1)(g) ofthe Act.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 117366W)
N. VENKATRAM
Partner
MUMBAI, May 29, 2013 (Membership No. 71387)

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of our report of even date)

(i) Having regard to the nature of the Company's business / activities / results duringthe year, clauses (xiii) and (xiv) of paragraph 4 of the Order are not applicable to theCompany.

(ii) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars, includingquantitative details and situation of fixed assets;

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which, in our opinion, provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us, no material discrepancies were noticed on suchverification;

(c) The fixed assets disposed off during the year, in our opinion, do not constitute asubstantial part of the fixed assets of the Company and such disposal has, in our opinion,not affected the going concern status of the Company.

(iii) In respect of its inventories:

(a) As explained to us, the stock of finished goods (other than a significant part ofthe spare parts held for sale) and work-in-progress in the Company's custody have beenphysically verified by the Management as at the end of the financial year, before theyear-end or after the year-end, and in respect of stocks of stores and spares, theaforesaid spare parts held for sale and raw materials in the Company's custody, there is aperpetual inventory system and a substantial portion of the stocks have been verifiedduring the year. In our opinion, the frequency of verification is reasonable. In case ofmaterials and spare parts held for sale lying with the third parties, certificatesconfirming stocks have been received in respect of a substantial portion of the stocksheld during the year or at the year-end;

(b) In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness;

(c) In our opinion and according to the information and explanations given to us, theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

(iv) In respect of loans, secured or unsecured, granted by the Company to companies,firms or other parties covered in the Register maintained under Section 301 of theCompanies Act, 1956, according to the information and explanations given to us:

(a) The Company has granted unsecured loans aggregating ' 194.36 crores to two partiesduring the year. At the year-end, the outstanding balances of such loans grantedaggregated ' 711.07 crores (number of parties - three) and the maximum amount involvedduring the year was ' 794.46 crores (number of parties - four).

(b) The rate of interest and other terms and conditions of such loans are, in ouropinion, prima facie not prejudicial to the interest of the Company having regardto the business relationship with the Company to whom loans have been granted.

(c) The receipts of principal amount have been as per stipulations. However, there havebeen delays in receipts of interest.

(d) There are no overdue amounts in respect of principal amount outstanding. In respectof overdue interest amounts of more than rupees one lakh remaining outstanding as at theyear-end, except in respect of interest outstanding from a subsidiary company for whichthe provision has been made, the Management has taken reasonable steps for the recovery ofthe overdue interest amounts.

In respect of loans, secured or unsecured, taken by the Company from companies, firmsor other parties covered in the Register maintained under Section 301 of the CompaniesAct, 1956, according to the information and explanations given to us:

(a) The Company has not taken loans from parties during the year. At the year-end, theoutstanding balances of such loans taken aggregated ' Nil (number of parties Nil) and themaximum amount involved during the year was ' 0.26 crores (number of parties - one).

(b) The rate of interest and other terms and conditions of such loans taken are, in ouropinion, prima facie not prejudicial to the interests of the Company.

(c) The payments of principal amounts and interest in respect of such loans areregular.

(v) In our opinion and according to the information and explanations given to us,having regard to the explanations that some of the items purchased are of special natureand suitable alternative sources are not readily available for obtaining comparablequotations, there exists an adequate internal control system commensurate with the size ofthe Company and the nature of its business with regard to purchases of inventory and fixedassets and with regard to the sale of goods and services. During the course of our audit,we have not observed any major weakness in such internal control system.

(vi) In respect of contracts or arrangements entered in the Register maintained inpursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge andbelief and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to in Section 301 that neededto be entered in the Register maintained under the said Section have been so entered.

(b) Where each of such transaction is in excess of rupees five lakhs in respect of anyparty, and having regard to the para (v) above, the transactions have been made at priceswhich are prima facie reasonable having regard to the prevailing market prices atthe relevant time.

(vii) In our opinion and according to the information and explanations given to us, theCompany has complied with the provisions of Sections 58A, 58AA or any other relevantprovisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,1975 with regard to the deposits accepted from the public. According to the informationand explanations given to us, no order has been passed by the Company Law Board or theNational Company Law Tribunal or the Reserve Bank of India or any Court or any otherTribunal.

(viii) In our opinion, the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

(ix) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Governmentunder Section 209 (1)(d) of the Companies Act, 1956 and are of the opinion that primafacie, the prescribed cost records have been maintained. We have, however, not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(x) According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory dues,including Provident Fund, Investor Education and Protection Fund, Employees' StateInsurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cessand other material statutory dues applicable to it with the appropriate authorities. Withregard to the contribution under the Employees' Deposit Linked Insurance Scheme, 1976 (theScheme), we are informed that the Company has its own Life Cover Scheme, and consequently,an application has been made seeking an extension of exemption from contribution to theScheme, which is awaited.

(b) There were no undisputed amounts payable in respect of Provident Fund, InvestorEducation and Protection Fund, Employees' State Insurance, Income-tax, Sales Tax, WealthTax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues inarrears as at March 31, 2013 for a period of more than six months from the date theybecame payable.

(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,Excise Duty and Cess which have not been deposited as on March 31, 2013 on account ofdisputes are given below:

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount Involved (' in crores.)
Income tax Income tax Commissioner (Appeals) 2003-04 to 2009-10 44.97
Income tax Appellate Tribunal 2007-08 3.40
Central Excise Excise Duty & Service Tax Tribunal 1993-94, 1999-00, 2002-03, 2004-05 to 2012-13 2249.15
Laws Excise Duty & Service Tax Commissioner (Appeals) 1984-85, 1995-96, 2003-04, 2006-07, 2010-11, 2011-12, 2012-13 83.13
Excise Duty & Service Tax Additional Commissioner 2012-13 0.66
Excise Duty & Service Tax Joint Commissioner 2012-13 0.21
Excise Duty & Service Tax Deputy Commissioner 2012-13 0.04
Excise Duty & Service Tax Asst. Commissioner 2012-13 0.09
Sales Tax Laws Sales Tax Supreme Court 1995-96 13.01
Sales Tax High Court 1984-85 to 1988-89, 1990-91, 1993-94, 1994-95, 1997-98, 1999-00, 2005-06 to 2007-08 18.83
Sales Tax Tribunal 1988-89, 1989-90, 1995-96, 1998-99, 1999-00, 2000-01, 2004-05, 2007-08, 2010-11 7.21
Sales Tax Commissioner (Appeals) 1996-97, 1998-99, 2001-02 0.20
Sales Tax Joint Commissioner 1997-98, 1999-00, 2001 -02 to 2008-09 222.33
Sales Tax Additional Commissioner 1988-89, 1989-90, 1995-96, 1997-98, 2005-06 to 2009-10, 2012-13 19.46
Sales Tax Deputy Commissioner 1979-80, 1986-87, 1991-92, 1992-93, 1994-95 to 1997-98, 2000-01, 2003-04, 2005-06, 2008-09 3.68
Sales Tax Assistant Commissioner 1986-87, 1988-89, 1990-91, 1995-96, 1997-98, 1999-00, 2010-11 1.06
Sales Tax Trade Tax Officer 1995-96, 1996-97, 1998-99 to 2000-01, 2006-07 1.83

(xi) The Company does not have any accumulated losses at the end of the financial yearand has not incurred cash losses during the financial year covered by our audit and theimmediately preceding financial year.

(xii) In our opinion and according to the information and explanations given to us, theCompany has not defaulted in the repayment of dues to financial institutions, banks anddebenture holders.

(xiii) Based on our examination of the records and the information and explanationsgiven to us, the Company has not granted any loans and advances on the basis of securityby way of pledge of shares, debentures and other securities.

(xiv) In our opinion and according to the information and explanations given to us, theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions.

(xv) In our opinion and according to the information and explanations given to us, theterm loans have been applied by the Company during the year for the purposes for whichthey were obtained.

(xvi) In our opinion and according to the information and explanations given to us andon an overall examination of the Balance Sheet of the Company, as at March 31, 2013, wereport that funds raised on short term basis of '8,439.39 crores have been used during theyear for long-term investment. Further the Company has explained that steps are beingtaken to augment long term funds.

(xvii) According to the information and explanations given to us, the Company has notmade any preferential allotment of shares to parties and companies covered in the Registermaintained under Section 301 of the Companies Act, 1956.

(xviii) According to the information and explanations given to us, during the periodcovered by our audit report, the Company has not issued any secured debentures.

(xix) According to the information and explanations given to us, during the yearcovered by our audit report, the Company has not raised any money by public issue.

(xx) To the best of our knowledge and according to the information and explanationsgiven to us, no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 117366W)
N. VENKATRAM
Partner
MUMBAI, May 29, 2013 (Membership No. 71387)
   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Tata Motors 137,965.29 105.58 6.94 30.25 3.6 5.1 0.85
Eicher Motors 15,923.12 63.89 19.39 34.13 38.4 48.9 0.01
Ashok Leyland 6,132.91 0.00 1.94 8.29 5.4 8.1 1.23
SML ISUZU 530.98 27.78 2.01 6.56 14.4 16.1 0.52
Force Motors 489.77 51.54 0.42 2.62 1.2 2.2 0.04

Futures & Options Quote

 
Expiry Date
429.90 16.90  (4.1%)
Instrument: FUTSTK
Expiry Date: 24 Apr 2014
Open Price: 417.75
Average Price: 425.05
No. of Contracts Traded: 14,685,000
Open Interest: 18,012,000
Underlying: TATAMOTORS
Market Lot: 1000
Previous Close: 429.90
Day’s High | Low: 431.40 | 417.05
Turnover (Cr.): 624.19
Open Int. Change: -1,609,000.00 ( [8.2]% )
View detailed F& O quotes >>

Key Information

Key Executives:

Ratan N Tata , Chairman Emeritus  

Cyrus P Mistry , Chairman  

Ravi Kant , Vice Chairman  

H K Sethna , Company Secretary  


Company Head Office / Quarters:
Bombay House,
24 Homi Mody Street Fort,
Mumbai,
Maharashtra-400001
Phone : 91-22-66658282
Fax : 91-22-66657799
E-mail : inv_rel@tatamotors.com
Web : http://www.tatamotors.com
Registrars:
TSR Darashaw Ltd
6-10 Haji Moosa
Patrawala Ind.Estate
DrEMoses Rd Mahalaxm
Mumbai - 400 011

Calendar

Apr-2014
M T W T F S S
14 15 16 17 18 19 20
IPO
listNo IPO today
Economic Events
list No economic event today
Results
list No result today