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m. 2010 : 3. 1 crore = Rs. 19. Sir Vithaldas Thackersey Marg. . 10 million Venue : Birla Matushri Sabhagar. September 1. Rs.00 p. Mumbai 400 020.Contents Board of Directors Summarised Balance Sheet and Profit and Loss Account Chairman’s Statement Notice Financial Statistics Directors' Report Management Discussion and Analysis Report on Corporate Governance Subsidiary Companies: Financial Highlights 2009-10 Fund Flow Statement Standalone Accounts – Auditors’ Report – Balance Sheet – Profit and Loss Account – Cash Flow Statement – Schedules to Accounts – Significant Accounting Policies – Notes to Accounts Balance Sheet Abstract and Company’s General Business Profile Consolidated Accounts – Auditors’ Report – Balance Sheet – Profit and Loss Account – Cash Flow Statement – Schedules to Accounts – Significant Accounting Policies – Notes to Accounts 2 3 4 7 12 13 23 35 50 52 53 56 57 58 59 73 76 92 93 94 95 96 97 105 110 Annual General Meeting Date Time : Wednesday.

Vice President (Engg. Indian Bank. Pantnagar.com P M Telang Managing Director. Deutsche Bank. President (Commercial Vehicles Business Unit) T Leverton.Board of Directors Contents Ratan N Tata Chairman Management Team Carl-Peter Forster. Vice President (Commercial-PCBU) P Y Gurav. United Bank of India. Sr. Finance-Accounts and Taxation) S B Borwankar. Corporation Bank. Head (Small Car Project) Ravi Kant Vice-Chairman J J Irani R Gopalakrishnan N N Wadia S M Palia R A Mashelkar S Bhargava N Munjee V K Jairath Ranendra Sen Carl-Peter Forster Chief Executive Officer & Managing Director Company Secretary H K Sethna Share Registrars TSR Darashaw Limited 6-10. ICICI Bank. Chief (Strategic Sourcing) U K Mishra.Vice President (Corp. Vice President (Manufacturing Operations-CVBU) S Krishnan. Lucknow. Federal Bank. Citibank N. E. 20. Mahalaxmi.. Sanand Corporate Identity Number (CIN) L28920MH1945PLC004520 . 117366W) Registered Office Bombay House 24. Andhra Bank. Chief Executive Officer & Managing Director P M Telang. Finance-Business Planning) N Pinge. Sr. ERC) Girish Wagh. Head. Mumbai-400 011. Karur Vysya Bank. Homi Mody Street Mumbai 400 001 Tel: +91-22-6665 8282 Fax: +91-22-6665 7799 Email: inv_rel@tatamotors. Hongkong Bank. Blunt & Caroe Auditors Deloitte Haskins & Sells (Registration No. Chief Financial Officer R Pisharody. Union Bank of India. Sr. Punjab National Bank.tatamotors. IDBI Bank. Bank of America.com Website: www. Managing Director-India Operations C Ramakrishnan.Sales & Marketing(CVBU) S Ravishankar. HDFC Bank. Vice President (Corp. State Bank of Patiala. Fax: +91-22-6656-8494 Email: csg-unit@tsrdarashaw. Bank of India. Central Bank of India. Vice President .A.India Operations Solicitors AZB & Partners. Haji Moosa Patrawala Industrial Estate. Tel: 91-22-6656 8484. Vice President (ADD and Materials-CVBU) A A Gajendragadkar.com Bankers State Bank of India. Bank of Maharashtra. State Bank of Mysore. Head (Car Plant-PCBU) B B Parekh. Moses Road. Chief Internal Auditor R Bagga. Vice President (Legal) R Ramakrishnan. Pune. Systems. Standard Chartered Bank. Dr. Allahabad Bank. Bank of Baroda. Mulla & Mulla & Craigie. Advanced and Product Engineering S N Ambardekar. ING Vysya Bank Works Jamshedpur. Head (Jamshedpur-Plant) Vikram Sinha.

91 14965.29 73809.33 3422.06 3 .39 51.75) (2465.50 2571. MANUFACTURING AND OTHER EXPENSES EMPLOYEE COST PRODUCT DEVELOPMENT EXPENDITURE DEPRECIATION / AMORTISATION INTEREST AND DISCOUNTING CHARGES EXCEPTIONAL ITEMS TOTAL EXPENDITURE 3.84 920. 16625.75 2506.64 Tata Motors’ Group As at As at March 31.Summarised Balance Sheet (Rs.13 144.17 92519.91 61387.21 2938. 2010 2009 38506.13 161.00) 11.02 (1136.17 NET FIXED ASSETS GOODWILL INVESTMENTS DEFERRED TAX ASSETS (NET) FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET) 6. 5. SHARE OF PROFIT / (LOSS) IN RESPECT OF INVESTMENTS IN ASSOCIATE COMPANIES 8.73) (2505.10 636.08 75153.89 (30.64 35192.87 1103.32 8751.48 565.64 (1005. 4.20 3887.81 26425.15 164.26 25541. in crores) WHAT THE COMPANY OWNED Company As at As at March 31.50) 1001.95 798. PROFIT /(LOSS) FOR THE YEAR 38364.48 213. 2.71 259.10 34973.64 1836.03 7297. March 31.05 1853.04 14592.77 1930.76 (12.16 (2129.12 94312. TOTAL FUNDS EMPLOYED 1.60 45383.65 2219.85 5940.96 2829.47 1508.08 42267.45 37446. 2. MISCELLANEOUS EXPENDITURE 8.31 3212.77 498.48 25629.90 1551.36 8206.12 1257. NET CURRENT ASSETS 7.26 2009-2010 95567.56 12230.33 35733. 4. 3. PROFIT /(LOSS) AFTER TAX 6.75) 2516.81 45383. in crores) Tata Motors’ Group 2008-2009 74093.48 (51.17 874.64 403.96 71679. SHARE OF MINORITY INTEREST 7.50 2008-2009 28568. March 31.37 (Rs.10 2771.94 1013.03 1033.08 2240.64 33100.40 425.36 70880.02 26425. 2010 2009 16436. 1. INCOME SALE OF PRODUCTS AND OTHER INCOME FROM OPERATIONS LESS : EXCISE DUTY DIVIDEND AND OTHER INCOME 2.54 673.16 22336.70 22325.13 2239. TOTAL ASSETS (NET) WHAT THE COMPANY OWED LOANS NET WORTH MINORITY INTEREST FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET) 5.03 949.26 1001.79 86.12 865.60 90789.69 (5834.67) 2.42 347.25 1793.45 34616.25) (335. EXPENDITURE RAW MATERIALS / COMPONENTS.46) 2240.90 12968. DEFERRED TAX LIABILITY (NET) 6.87 3718.73 925.61) 33100.51 191. 3.97 26555.73 3522.02 13165.15 1579.90 339. PROFIT / (LOSS) BEFORE TAX 4. TAX EXPENSE 5.33) 84.54 (589.44 808.68 65.65 42267.42 3048.25) 29578.17 Summarised Profit and Loss Account Company 2009-2010 1.05 35593.97 269.

Commercial vehicle sales in India also registered a recovery of 40% on the increased execution of major infrastructure projects in the country. This resulted in dramatic changes in the structure of global auto makers. due mainly to the rise in fuel prices and the collapse of the banking institutions.Sixty-fifth annual report 2009-10 Tata Motors Limited Chairman’s Statement Dear Shareholder.5 million units in FY09 to about 1. a lower cost base. along with market incentives helped the industry to survive this crisis.020 units.4% respectively.5% from 1.9 million units in FY10 in the domestic market. By contrast. 4 . India too witnessed growth in passenger vehicle sales of 24. Two of the ‘Big Three’ U. The new structure and the related government-led financial packages.1%. Passenger vehicle sales alone increased by 25.4 million units in 2009.S. auto makers the world over are concentrating on new technologies to meet the stringent forthcoming emission goals which are being set. Both brands improved their performance impressively mainly due to the very positive customer response to its newlylaunched luxury sedans and the fact that the Company has succeeded in achieving a significant reduction in cost with improved operational efficiencies. The world has been recovering from the global financial crisis which devastated the economies of so many countries and so many business sectors.862 units – a growth of 34. Automotive sales in North America.000 units. 2. Today.5% from 5. The Company’s domestic sales in India for cars and commercial vehicles was 633. Tata Motors posted record consolidated net revenues and profits of Rs.519 crores ($19. the automotive sector in Asia experienced growth. saw its passenger car sales increase 47. now the world’s largest car producer. It is therefore not surprising that this sector was amongst the worst-hit industrial sectors during the period of this global meltdown.3% to 260. and lower debt. Hybrids and plug-in electric cars are also being introduced in the market in increasing numbers as alternative propulsion options.376 million) and Rs. car companies filed for bankruptcy in mid-2009 and re-emerged with substantial federal funds. Consequently.571 crores ($538 million) respectively during the current year. Sales of cars in the United States declined by 21. Jaguar/Land Rover wholesale sales for FY 2009-10 grew to almost 194.9% and 6.7 million units in 2008 to 8. The automobile industry has always been a barometer for the economic strength of a nation. Continental Europe and the United Kingdom were particularly hard-hit in 2008-09.5% over the previous year while sales in Europe and the United Kingdom declined by 11. 92. The domestic car markets of China and India have remained exceptionally buoyant. China and India were the main drivers of this growth. China.

China has emerged as the third-largest global market for Land Rover/Range Rover and studies are underway to consider options to increase market penetration in China. and the challenge before the Company today is to deliver enough vehicles to meet market demand. These are being released progressively during the current year. Both have been well-received in the market. Gujarat. the Company also displayed its new Crossover vehicle. The new Range Rover ‘EVOQUE’ will be a bold design evolution in SUVs. India and other developing markets. despite the adverse market and financial conditions. Market sentiment has improved.Also.000 Nanos per annum. Work is underway to revamp and refresh the entire model range. Tata Motors was also able to restructure and pay down its debt by $977 million. in addition to an impressive development of product and process technologies. The current range of vehicles has seen resurgence in demand. o Land Rover / Range Rover – The Range Rover continues to be the gold standard for offroad vehicles. The automotive demand in Asia remains strong and the market in Europe. Highlights for each brand and their future plans are summarized below:o Jaguar – The newly launched XF and XJ luxury sedans have been welcomed by customers in the market. a new entry-level Jaguar. capabilities and skills. Jaguar cars are regaining the confidence of customers as being reliable. thus making the Company a stronger and more viable enterprise. with great road-handling and occupant safety. during the year. The Company has enormous talent. The Company is considering widening the product range of Jaguar cars by introducing a station wagon. has become operational in a record 14 months’ time and while this new facility will initially produce 250. In January. two new passenger carriers and an entire new range of heavy commercial vehicles. Today and Beyond The global automobile industry seems to be recovering – in line with the world’s improving economic climate. United Kingdom and the United States has improved. These will enable the Company to achieve a more prominent position in the international automobile marketplace in the coming years. Tata Motors – India During the year Tata Motors launched its all-new second-generation Indigo Manza sedan to join the new Indica Vista hatchback launched last year. The new plant in Sanand. The shift of the Nano manufacturing facilities from Singur in West Bengal to Sanand in Gujarat has been completed. and a new roadster. in addition to being high-performance. Fuel-efficient ‘start/stop’ and hybrid vehicles will also be introduced progressively. JLR’s operations have been profitable over the last two quarters and the new Jaguar and Land Rover products recently launched have all been well-received in the market. The outlook for Tata Motors appears to be robust. it will 5 .

000 units per annum. as also the Indian commercial vehicle segment suffered badly in 2008-09 during the global meltdown. our workforce and our unions.Sixty-fifth annual report 2009-10 Tata Motors Limited have the capability to expand to 500.A. viewed international expansion as an important strategic factor. The new Sanand plant will now make it possible to derive scale and optimization of manufacturing processes. Chairman Mumbai. All of this has gone towards making Tata Motors the company it is today. Nano deliveries had been executed from the Company’s facilities in Uttaranchal. Spain. vindicating the sound fundamentals of the Company’s longer-term strategies. The Nano has been selling extremely well and continues to evoke unprecedented customer interest across the country. In the interim. resulting in a consolidated loss. Last. The progress which the Company has made would never have been possible without the tremendous support of our management. With the acquisition of Jaguar/Land Rover. product development. Tata Motors will achieve growth and take its place as a respected and viable automobile enterprise in the global industry with meaningful size and scale in the various segments in which it operates. but not least. Recognizing that scale and market growth are essential. whom we will always strive to serve better. We also appreciate the confidence and loyalty displayed by our customers. The operational strategy would be to leverage the Company’s strengths in the design and development of products for the base of the pyramid. while also growing in the higher priced segment. all these segments have been able to register an impressive recovery in 2009-10. Daewoo Commercial Vehicle Company Limited. we wish to thank our shareholders for their continued faith and support to the Company through good times and bad. The Company also plans to undertake several joint initiatives which will leverage the respective strengths and economies of its various domestic and overseas establishments. Hispano Carrocera S. and a major bus joint venture with Marco Polo of Brazil. While sales of JLR. Tata Motors expects to be in a position to offer a much wider product range in passenger cars and commercial vehicles in an increasing number of international markets. in addition to its domestic growth.p. We would need this continued support to achieve the goals we have set for Tata Motors in the years ahead. July 16. There is great confidence that with the major initiatives undertaken in terms of global acquisitions. addressing the often-unserved large potential market at the low end. new product introductions and operational synergies. Tata Motors has. 2010 6 . namely.

m. Appointment of Mr Carl-Peter Forster as Chief Executive Officer and Managing Director To consider and. To declare a dividend on Ordinary Shares and ‘A’ Ordinary Shares. Mumbai 400 020 to transact the following business: Ordinary Business 1. 2010 to March 31. the following resolution as an Ordinary Resolution: “RESOLVED that Mr R Gopalakrishnan. 2013. to pass with or without modification. as amended or re-enacted from time to time. 1956 (“the Act”). but who is eligible for appointment and in respect of whom the Company has received a notice in writing from a Member under Section 257 of the Act proposing his candidature for the office of Director of the Company. Sir Vithaldas Thackersey Marg. including the remuneration to be paid in the event of inadequacy of profits in any financial year as set out in the Explanatory Statement annexed to the Notice convening this meeting. if thought fit.Notice NOTICE IS HEREBY GIVEN THAT THE SIXTY-FIFTH ANNUAL GENERAL MEETING OF TATA MOTORS LIMITED will be held on Wednesday. 2010 and who holds office upto the date of this Annual General Meeting of the Company.” 8. upon the terms and conditions. be not filled. if any.. 2010 at 3. To consider and. who does not seek re-election. but who is eligible for appointment and in respect of whom the Company has received a notice in writing from a Member under Section 257 of the Act proposing his candidature for the office of Director of the Company. a Director liable to retire by rotation. 19. the following resolution as an Ordinary Resolution: “RESOLVED that pursuant to the provisions of Sections 198. be and is hereby appointed a Director of the Company. of the Companies Act. to pass with or without modification. consider and adopt the Audited Profit and Loss Account for the year ended March 31. 2010 and who holds office upto the date of this Annual General Meeting of the Company. To appoint Auditors and fix their remuneration. 4. to pass with or without modification. To appoint a Director in place of Dr R A Mashelkar. with liberty to the Directors to alter and vary the terms and conditions of the said appointment in such manner as may be agreed to between the Directors and Mr Forster. the Company hereby approves the appointment and terms of remuneration of Mr Carl-Peter Forster as the Chief Executive Officer and Managing Director of the Company for the period from April 1. 309. be and is hereby appointed a Director of the Company whose office shall be liable to retirement by rotation. Appointment of Mr Ranendra Sen as a Director To consider and. be not re-appointed a Director of the Company. if thought fit. September 1. if thought fit. at Birla Matushri Sabhagar. To receive. read with Schedule XIII of the Act and subject to the approval of the Central Government. who retires by rotation and is eligible for re-appointment. the following resolution as an Ordinary Resolution: “RESOLVED that Mr Ranendra Sen who was appointed by the Board of Directors as an Additional Director of the Company with effect from June 1. 2. who retires by rotation and is eligible for re-appointment. 1956 (“the Act”). if any. in terms of Section 260 of the Companies Act. if any. to pass with or without modification. 2010 and the Balance Sheet as at that date together with the Reports of the Directors and the Auditors thereon. if any. Special Business 7." “RESOLVED FURTHER that the vacancy.00 p. and other applicable provisions.” 6. Appointment of Mr Carl-Peter Forster as a Director To consider and. 269. the following resolution as an Ordinary Resolution: “RESOLVED that Mr Carl-Peter Forster who was appointed by the Board of Directors as an Additional Director of the Company with effect from April 1. in terms of Section 260 of the Companies Act. so created on the Board of Directors of the Company. To appoint a Director in place of Mr Ratan N Tata. if thought fit. 1956 (“the Act”). 3. 5. if any.” 7 .” 9.

In case of joint holder attending the Meeting. Only registered Members (including the holders of ‘A’ Ordinary Shares) of the Company may attend and vote at the Annual General Meeting. to give or withhold such consents. Members desiring any information as regards the Accounts are requested to write to the Company at an early date so as to enable the Management to keep the information ready at the Meeting. k. Changes intimated to the Depository Participant will then be automatically reflected in the Company’s records which will help the Company and its Registrars and Transfer Agents to provide efficient and better service to the Members. etc. as applicable. societies. 2010 to Wednesday. after giving effect to valid transfers in respect of transfer requests lodged with the Company on or before the close of business hours on August 11. Proxies submitted on behalf of limited companies. The instrument appointing Proxy as per the format included in the Annual Report should be returned to the Registered Office of the Company not less than FORTY-EIGHT HOURS before the time for holding the Meeting. each ‘A’ Ordinary Shareholder shall be entitled to one vote for every ten ‘A’ Ordinary Shares held. the same number of votes as available to holders of Ordinary Shares. submission of Permanent Account Number (PAN) is compulsorily required for participating in the securities market.5.Sixty-fifth annual report 2009-10 Tata Motors Limited “RESOLVED FURTHER that the Board of Directors of the Company or a Committee thereof. power of attorney. July 1. (ii) To all Members in respect of shares held in physical form. mandates. A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE ON A POLL INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEMBER. H K SETHNA Company Secretary 8 . The Register of Members and Transfer Books of the Company will be closed from Thursday.” By Order of the Board of Directors Mumbai. change of address/name. If the dividend as recommended by the Board of Directors is approved at the Annual General Meeting. September 1. 7 to 9 set out above and details under Clause 49 of the Listing Agreement with the Stock Exchanges in respect of Directors seeking appointment/reappointment at this Annual General Meeting are annexed hereto. 2010 Registered Office: Bombay House. Members holding shares in physical form and desirous of availing this facility are requested to contact the Company’s Registrars and Transfer Agents. d. 2010. only such joint holder who is higher in the order of names will be entitled to vote. Members holding shares in dematerialised mode are requested to intimate all changes pertaining to their bank details. Members are requested to bring their copies to the Meeting. payment of such dividend will be made on or after September 2. j. as of the close of business hours on August 11. copies of the Annual Report will not be distributed at the Annual General Meeting. to their Depository Participant only and not to the Company’s Registrars and Transfer Agents. 2010. 1956 in respect of the business under Item Nos. Members’ attention is particularly drawn to the “Corporate Governance” section in respect of unclaimed and unpaid dividends. be and is hereby authorised to take all such steps as may be necessary.. must be supported by appropriate resolution /authority. nominations. A brief statement as to the manner in which such voting instructions may be given is being sent to the ADR holders by the Depositary. PAN details. h. Mumbai 400 001 Notes: a. c. b. Members holding shares in dematerialised mode are requested to submit the PAN details to their Depository Participant. 2010 as under: (i) To all Beneficial Owners in respect of shares held in electronic form. to receive such notice or to otherwise take action to exercise their rights with respect to such underlying shares represented by each such American Depositary Share. In respect of ‘A’ Ordinary Shares. The Depositary for the holders of the GDRs shall exercise voting rights in respect of the deposited shares by issue of an appropriate proxy or power of attorney in terms of the Deposit Agreement pertaining to the GDRs. To avoid loss of dividend warrants in transit and undue delay in respect of receipt of dividend warrants. If any resolution at the meeting is put to vote on a poll. As per Securities and Exchange Board of India (SEBI) notification. both days inclusive. if any resolution at the meeting is put to vote by a show of hands. proper and expedient to give effect to this Resolution. or if any resolution is put to vote by postal ballot. i. the Company has provided a facility to the Members for remittance of dividend through the National Electronic Clearing System (NECS). The ‘A’ Ordinary Shareholders will receive dividend for any financial year at five percentage points more than the aggregate rate of dividend declared on Ordinary Shares for that financial year. NECS essentially operates on the new and unique bank account number allotted by banks post implementation of Core Banking Solutions (CBS) for centralized processing of inward instructions and efficiency in handling bulk transactions. The relative Explanatory Statement pursuant to Section 173 of the Companies Act. Homi Mody Street. issued by the member organization. e. etc. 2010. the ADR holders are entitled to give instructions for exercise of voting rights at the said meeting through the Depositary.e. deletion of name of deceased shareholder or transmission/transposition of shares. The holders of the American Depositary Receipts (the ‘ADRs’) and Global Depositary Receipts (the ‘GDRs’) of the Company shall not be entitled to attend the said Annual General Meeting. However. each ‘A’ Ordinary Shareholder shall be entitled to one vote. August 12. as per the data made available by the National Securities Depository Limited and the Central Depository Services (India) Limited. whereas Members holding shares in physical form are requested to submit the PAN details to the Company’s Registrars and Transfer Agents. g. The NECS facility is available at locations identified by Reserve Bank of India from time to time and covers most of the cities and towns. 24. partnership firms. i. As an austerity measure. NECS. f.

he was Joint Secretary to successive Prime Ministers. Notice under Section 257 of the Act has been received from a Member signifying his intention to propose Mr Sen’s appointment as a Director. the business comprising the two iconic British brands which were acquired in 2008 which has global operations. including Jaguar Land Rover. Mumbai. 2010 and was entrusted with the overall responsibility of Tata Motors’ operations globally.7 for approval by the Members. Germany. Item Nos. Under Section 260 of the Act. pursuant to Section 173 of the Companies Act. holds a valid employment Visa and registration certificate issued by Foreigners Regional Registration Office. responsible for foreign and defence policies. 5: In accordance with the provisions of Section 256 of the Act and the Articles of Association of the Company. Mr Forster holds a Diploma in Aeronautical Engineering from the Technical University in Munich and a Diploma in Economics from the Rheinische Friedrichs-Wilhelm-Universitat in Bonn. The Company is emerging as a major player in the global field with a presence in almost all Automobile segments. Bangladesh. Italy in India. April 1. Taking into consideration the size and complexity of the Company’s global operations. Brief information of Mr Forster is given in the Annexure attached to the Notice. 5. 7: The Board of Directors (‘the Board’).e. Saab and European activities of Chevrolet. 1998 and is also a Member of the Executive Committee of the Board. Russia and Senegal. including that of Managing Director of BMW South Africa and was also on the Managing Board of BMW responsible for manufacturing. South Asia and South America. a German resident and national. 2010. Item No. buses and trucks are being marketed in several countries in Europe. Mr Forster has 24 years of international experience in the automobile industry and was the CEO of General Motors. Mr Sen graduated from St. reducing cost.7 of the Notice. With over 4 million Tata vehicles plying in India. 2010. the Board at its meeting held on March 30. 2010 appointed Mr Ranendra Sen as an Additional Director with effect from June 1. Mr Gopalakrishnan is a Director of the Company since December 22.p.8.f. It is a reputed brand worldwide especially in the recent years having a global footprint in almost all continents. Investors’ Grievance Committee and Ethics and Compliance Committee.Explanatory Statement The following Explanatory Statement. 2010 appointed Mr Forster as an Additional Director and subject to the approval of the Members and the Central Government. 9 . Through subsidiaries and associate companies.e. The Board considers it desirable that the Company should continue to avail of the services of Mr Sen and accordingly commends the Resolution at Item No. improving quality. It also has franchisee/joint venture assembly operations in Kenya. the Middle East. 2010. Mr R Gopalakrishnan retires by rotation. 1956 ("the Act"). Under Section 260 of the Act.f. Mr Forster ceases to hold office at this Annual General Meeting but is eligible for appointment as Director. The Company also has an industrial joint venture with Fiat S. Members’ attention is invited to the Directors’ Report. 8 and 9: Mr Carl-Peter Forster was appointed as the Group Chief Executive Officer of the Company w. During his 43 years as a public servant. The Board has placed on record its appreciation of the contributions made by Mr Gopalakrishnan to the Company. atomic energy. significant being. Tata cars. Among them is Jaguar Land Rover. February 15. space and other tasks. also as the Chief Executive Officer and the Managing Director (‘the Managing Director’) of the Company w. Mr Forster. Prior to this. Thailand and Spain. Tata Motors has operations in the UK. sets out all material facts relating to the business mentioned at Item Nos. Mr Sen ceases to hold office at this Annual General Meeting but is eligible for appointment as a Director. South Korea. 7 to 9 of the accompanying Notice dated July 1.A. Item No. Mr Forster held various positions in BMW. Africa. at its Meeting held on May 27. Mr Sen served as a political appointee as Ambassador to the United States during the most rapid and far-reaching transformation of India-US relations from 2004 to 2009. Xavier’s College and joined the Indian Foreign Service in 1966. Mr Sen is concerned or interested in Item No. From 1986 to 1991. pursuant to Section 260 of the Act and Article 132 of the Articles of Association of the Company. the enormous responsibility for oversight of the Tata Motors’ Group and the qualifications and accomplishments of Mr Forster. Notice under Section 257 of the Act has been received from a Member signifying his intention to propose Mr Forster’s appointment as a Director and the Members’ approval is sought for the said proposal vide Resolution at Item No. he participated in about 180 multilateral and bilateral summits. Mr R Gopalakrishnan has not sought re-election and it has been decided by the Board that the vacancy so created on the Board of Directors of the Company should not be filled. expanding product range and market reach.. The Company has further plans to consolidate its position in various product segments in India and globally and is working on various initiatives. Brief information of Mr Sen is given in the Annexure attached to the Notice. Europe where he looked after Opel/Vauxhall. Ukraine. the Company is the country’s market leader in commercial vehicles and among the top three passenger vehicle manufacturers in India.

For the period of the post-contractual prohibition of competition and the post-contractual non-solicitation covenant set out above. the Managing Director: . business visibility. Mr Forster shall also accept and discharge those duties which may be assigned to him by the Board from time to time including serving on the Boards of associated/subsidiary companies or any other executive body or committee of such company and any other duties which can be reasonably expected of him in consideration of his position as the Managing Director. .non compete/conflict of interest and non-solicitation during the term and for a period of 12 months thereafter. c. the Company will have the right.is required to devote sufficient time and attention to the affairs and business of the Company and will have no other engagement or employment in any capacity for remuneration or otherwise. 50% of the Managing Director’s salary and bonus entitlements shall be due to him. in accordance with the directions of the Board. perquisites and allowances as may be approved by the Board/Committee thereof from time to time. directly or though his affiliates. bonus. Minimum Remuneration: Notwithstanding anything to the contrary. Within the said 3 year period.000/. (ii) The terms of appointment also include appropriate clauses for: .adherence with the Tata Code of Conduct and maintenance of confidentiality. business guidance. 2010 to March 31. control and direction of the Board and shall also be subject to any limits and restrictions imposed under the Agreement with the Company or imposed by Applicable Law. perquisites and allowances as may be determined by the Board or a Committee thereof from time to time. where in any financial year. the Company would pay the Managing Director. .Notwithstanding anything mentioned above. Bonus and variable incentives remuneration based on certain performance criteria laid down by the Board.90. b. The terms of appointment and remuneration as approved by the Board pursuant to the recommendation of the Remuneration Committee include:a. d. the Company has no profits or its profits are inadequate during the currency of the tenure of the Managing Director. the Tata Code of Conduct which result in significant loss or damage to the Company. corporate governance documents. in any selling agency of the Company.. administration. after due inquiry and opportunity to the Managing Director of being heard. 2013. The discharge of the duties by Mr Forster shall be subject to superintendence. subject to the approval of Central Government as required under applicable laws continue to pay to Mr Forster. (c) serious violation of any of his duties which result in significant loss or damage to the Company. (iii) During the Term. . networking. it shall give the Managing Director all salary and benefits payable under his employment agreement for the period of 3 years from the effective date of employment. An application has also been made to the Central Government in respect of the said appointment and remuneration to be paid to Mr Forster and the appointment is subject to receipt of the said approval. Incentive Remuneration. finance.shall not become interested or otherwise concerned. the Managing Director shall use reasonable efforts to find an appropriate new position. an Abstract of the main terms and conditions of Mr Forster’s appointment was sent to the Members for their information. to terminate the employment with immediate effect in the event it is proved that the Managing Director is guilty of (a) misappropriation of funds.If the Company elects to terminate the Managing Director’s employment. Articles of Association of the Company. Tenure of Agreement: April 1. Nature of duties: The Managing Director shall be responsible for the substantial management and administration of the Company comprising primarily of contributing in high level business development.34. Benefits.p. without the prior written consent of the Board or except to the extent with any subsidiary/affiliate of the Company. benefits. the Company’s Articles of Association. he shall be entitled to do so provided he gives the Company 6 month’s basic salary. (b) serious violation of applicable laws. compensation of 50% of his last drawn basic salary. . remuneration by way of Basic Salary. the approval of the Central Government and restrictions imposed by the Board of the Company. in which event.Sixty-fifth annual report 2009-10 Tata Motors Limited Pursuant to Section 302 of the Act. (d) repeated or continuing breach or non observance by the Managing Director of the Board’s directives which result in significant 10 . policy and decision making.m. the Company will. Other terms of Appointment: (i) During the Term.If the Managing Director elects to terminate his employment during this period. the Company or Mr Forster may terminate the appointment with effect to the end of a month upon written notice to the other party. Remuneration: Salary: Rs. on the following terms: .

The Bombay Dyeing & Manufacturing Co.loss or damage to the Company. 8 and 9 for approval by the Members. NIL Wide experience and renowned knowledge in Scientific Areas. 2010 Registered Office: Bombay House. Ph. atomic energy and space areas. 9. KPIT Cummins Infosystems Ltd.87.Sc. Piramal Lifesciences Ltd. H K SETHNA Company Secretary B. Hindustan Unilever Ltd. Reliance Industries Ltd. and other applicable provisions of the Act read with Schedule XIII of the Act. Xavier’s College and joined Indian Foreign Service in 1966. Tata Industries Ltd.836 'A’ Ordinary Shares NIL NIL NIL 11 . The Indian Hotels Co. the Company would not be required to pay the Managing Director any remuneration from the date of termination. 24. Tata Motors Ltd. 2010 Diploma in Aeronautical Engineering from Technical University. (iv) Upon termination. 1954 56 years April 1. Ltd. The Board commends the Resolutions at Item Nos. Sakal Papers Ltd. D from including 1 yr. Scientist. at the Cornell Bombay University. Tata Sons Ltd. By Order of the Board of Directors Mumbai. Mr Forster is appointed as a Director by virtue of his employment in the Company and his appointment shall be subject to the provisions of Section 283(1)(l) and other applicable provisions of the Act. Mr Carl-Peter Forster May 9. 2010 Graduate Degree from St. 1944 66 years June 1. Mumbai 400 001 Details of Directors retiring by rotation seeking re-election and appointment of Directors at this Annual General Meeting Particulars Date of Birth & Age Appointed on Qualifications Mr Ratan N Tata December 28. Mr Forster is concerned or interested in Item Nos. 309. Homi Mody Street. Audit Hindustan Unilever Ltd. Expertise in policy matters pertaining to foreign affairs. Tata Chemicals Ltd. The Tata Power Co. July 1. ICICI Knowledge Park. (e) abuse of confidential information for his own purposes. 1981 Dr R A Mashelkar January 1. In such event. Tata Teleservices Ltd. Graduate School of Business Administration. the terms of remuneration specified above are now being placed before the Members for their approval vide Resolution at Item No. 8 and 9 of the Notice. USA. Tata Steel Ltd. Ltd. Ltd. In compliance with the provisions of Sections 269. 1937 72 years August 14. Diploma in Economics from the Rheinische Friedrichs Wilhelm-Universitat. Tata Tea Ltd. Munich. Thermax India Ltd.346 Ordinary Shares & 21. Wide international experience in automobile industry. 2007 Mr Ranendra Sen April 9. IKP Centre for Technologies in Public Health. Expertise in specific functional areas Directorships held in other Public companies (excluding foreign and private companies) Eminent industrialist with wide business experience across a variety of industries. and (f ) an undisclosed serious violation of the non-compete covenant. (Architecture) from Chemical Engineering Cornell University. Reliance Industries Ltd. Diplomat. Germany. defence. Tata Consultancy Services Ltd. the Managing Director would resign from the office as a director in the Company or other offices held by him in the Company and/or any of its subsidiaries/affiliates without claim for compensation for loss of office. 1943 67 years August 28. NIL Memberships/ Chairmanships of Audit and Investor Grievances committees across public companies Shareholding NIL NIL 1. Bonn. Fiat India Automobiles Ltd.

50 1.45+ 1.8% 4.45 1.50 2.0% 7.00 2.3% 3.64 1.7% 7.2% 5.38 5.60 0.78 (18.1% 1.97 2.00 3.00 8.5% 3.1% 3.29 21.8% 3.90 0.00 15.0% 3.7% 5.4% 2. $ On increased capital base due to issue of Bonus Shares.0% 5.7% 4.87 3.20 42.00 2.25 6.8% 2.80 2.39 2.6% 3.2% 5.72 1.6% 4.0% 3.9% 4.00 2.35 1.per share.50 1.00 12.93 1.0% 2.98) 9. 12 .68 1.1% 4.36 5.45) (1.30 2.45 1.74 9.50 3. ++ On increased capital base due to Rights issue and conversion of FCCN into shares.50! 13. 2.) Ordinary Share 1945-46 1949-50 1953-54 1954-55 1955-56 1956-57 1957-58 1958-59 1959-60 1960-61 1961-62 1962-63 1963-64 1964-65 1965-66 1966-67 1967-68 1968-69 1969-70 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 100 1 200 11 500 27 627 27 658 120 700 149 700 117 1000 206 1000 282 1000 367 1000 432 1000 450 1198 630 1297 787 1640 995 1845 1027 1845 1121 1845 1295 1845 1333 1845 1516 1949 2020 1949 2194 1949 2394 1949 2827 2013 3691 2328 3833 2118 4721 3151 5106 3151 6263 3151 8095 4320 10275 4226 12458 5421 14103 5442 15188 5452 16551 5452 15886 6431 17491 10501 30740 10444 37870 10387 47921 11765 61863 12510 64207 12867 70745 13694 128338 24182 217400 25588 339169 25588 349930 25590 350505 25590 349822 25590 299788 31982 214524 31983 227733 35683 323677 36179 374960 38287 515420 38541 648434 38554 745396 51405 1171610 57060 1439487 94 412 481 812 1382 1551 1245 1014 1263 1471 1758 2470 3275 3541 4299 5350 5856 6543 6048 6019 5324 6434 9196 9399 11816 11986 11033 17739 15773 25476 23361 25473 30226 44651 53476 44406 32396 48883 48323 105168 144145 141320 115569 128097 253717 330874 344523 300426 299888 230772 145831 125977 249542 293684 400914 628052 1316556 1662591 31 233 731 792 1010 1352 1675 2050 2201 2593 2954 3281 3920 4789 5432 6841 7697 8584 9242 10060 10931 12227 13497 15838 18642 20709 22430 24900 28405 33055 38819 43191 46838 52819 61943 68352 75712 83455 91488 100894 123100 153612 177824 217084 294239 385116 487073 569865 581233 591427 591006 608114 627149 715079 892274 1128912 1589579 2085206 2364896 2 29 44 189 270 461 303 489 407 603 474 878 668 1007 780 1270 940 1261 1118 1475 1336 1618 1550 1731 1802 2118 2144 2645 2540 2892 3039 3802 3608 4089 4236 4348 4886 4356 5620 4440 6487 4444 7491 4736 8471 5026 9593 6245 10625 8017 11685 9024 12723 9707 13895 11005 15099 13306 16496 16559 18244 20575 20219 22972 23078 23760 26826 25993 29030 32913 30914 37438 34620 41092 38460 44995 43070 48418 48219 52675 54609 68491 61710 91902 70285 107539 81595 135489 96980 197259 117009 268107 141899 345174 165334 404531 182818 398415 209067 382360 243172 347834 271307 336807 302369 324780 345428 369651 440151 452123 489454 639458 544352 1045227 625990 1459216 721292 1643604 12 167 321 445 1198 2145 2694 2645 2825 3735 4164 4364 5151 6613 7938 9065 9499 10590 9935 13624 15849 15653 16290 22510 27003 28250 28105 37486 44827 60965 79244 86522 85624 93353 102597 119689 140255 167642 196910 259599 317965 309156 374786 568312 790967 1012843 736279 659395 896114 816422 891806 1085874 1555242 2064866 2429052 3206467 3357711 2949418 4021755 2 15 97 35 105 70 129 113 161 180 220 223 260 345 398 505 572 630 662 749 758 820 902 1134 1054 1145 1101 1200 1300 1616 1993 2187 2923 3895 3399 2157 3822 4315 4891 5426 6475 7456 9410 11967 16444 20924 25924 28132 34261 34737 35468 36213 38260 45016 52094 58629 65231 87454 103387 1 11 3 0 125 116 99 155 222 313 378 327 404 479 477 620 395 582 274 673 885 832 1007 677 855 1056 1044 1514 1762 2437 4188 3481 2163 2703 1832 293 3205 8513 14829 23455 20884 3030 10195 45141 76072 100046 32880 10716 7520 (50034) (10921) 51037 129234 165190 205338 257318 257647 101376 282954 0 5 0 0 32 27 6 13 93 122 188 185 200 208 189 192 66 173 0 270 379 360 450 136 91 0 0 0 0 0 0 460 235 390 215 0 510 1510 4575 9250 7800 26 20 13246 23070 23810 3414 970 400 0 (5548) 21026 48200 41495 52450 65972 54755 1250 58946 1 6 3 0 93 89 93 142 129 191 190 142 204 271 288 428 329 409 274 403 506 472 557 541 764 1056 1044 1514 1762 2437 4188 3021 1928 2313 1617 293 2695 7003 10254 14205 13084 3004 10175 31895 53002 76236 29466 9746 7120 (50034) (5373) 30011 81034 123695 152888 191346 202892 100126 224008 0 0 0 0 59 44 52 56 108 126 124 124 144 157 191 235 235 235 221 251 273 266 180 266 276 323 313 467 605 605 839 827 923 1241 1243 552 1356 2444 3126 4154 4389 3642 5020 8068 14300 22067 15484 8520 7803 0 0 14430 31825 51715 56778 67639 65968 34570 99194 8.2% 6.) Ordinary Share 0.07 0.8% 5.96 8.0% 3. ! Includes a special dividend of Rs.4% 5.3% 4.64 22.69 12.04 2.61 4.9% 2.0% 4.50 0.34 3.50 1.80 0.38 24.45 1.72 2.9% 0.00 2.3% 6.6% 0.32 4.in lakhs) Profit/ (Loss) Before Taxes Taxes Profit/ (Loss) After Taxes Dividend including tax PAT to Sales Earnings Per Share (Basic)* (Rs.28 1.00 4.9% 4.45 1. Net Worth excludes ordinary dividends.68 34.4% 2.00 2.00 2.45 1.91 23.27 10.1% 3.92 30.2% 1.50 15.32 1.32 3.5% 1.57 49.51 3.50 4.00 ‘A’ Ordinary Share 6.30 2.5% 4.5% 5.6% 6.00 5.00 4.50 10 10 11 11 12 13 12 12 13 14 15 15 16 17 18 17 18 19 19 20 23 24 26 28 33 30 35 27 31 38 35$ 40 37@ 39 41 40 38@ 40@ 47 56 67@ 63 65 104 100 143 147 147 147 127 77@ 81 102@ 114@ 145@ 178@ 203@ 238++ 262^ Net Worth Per Share* (Rs.50+ 1.10 2.00 15.45 1.10/.00 6.37 ‘A’ Ordinary Share 23.50 1.49 3. + Including on Bonus Shares issued during the year.0% 3.5% 2.60 5. ^ On increased capital base due to GDS issue and conversion of FCCN into shares.70 42.47 7.7% 3.50 3.6% 0.81 2.45 1.in lakhs) Year Capital Reserves and Surplus Borrowings Gross Block Depreciation Net Block Turnover Depreciation REVENUE ACCOUNTS (Rs.51 4.00 15.3% 3.2% 3.25 1.00 1.45 2.0% 6.43 3.60+ 2.38 40.00 4.18 7.00 8.03 0.11 0.5% 4.00+ 2.87 RATIOS Dividend Per Share*# (Rs.8% 3.50 per share for the Diamond Jubilee Year.90 1.45 1. * Equivalent to a face value of Rs.3% 2.26 2.66 1.68 1.0% 6.5% 0.30 1.6% 5.7% 3.00 6. # Includes Interim Dividend where applicable.76 52.Sixty-fifth annual report 2009-10 Tata Motors Limited FINANCIAL STATISTICS CAPITAL ACCOUNTS (Rs.4% 4.0% 1.45 1.) Notes : @ On increased capital base due to conversion of Bonds / Convertible Debentures / Warrants / FCCN into shares.40 11.20 2.87 13.00 6.37 5.00 0.6% 0.

33 3.001.571.per share) and Rs.77 4.505.02 65. would involve a cash outflow of Rs.356 Ordinary Shares of Rs.26 1.42 92.789.85) 2.381.per share on the increased capital of 506.629.89 54.12 (741.09 8.84 4.46 2.99 920.678.685.90 1.20 41.853.66) 1.001.930.004.08 2.17 2.71 1.593.927.752.29 2.45 2.005.50 1.75 (2.29 (2.06 (1.001.991.21 25.364. if approved by the Members.24 259.07 500.54 589.465.13 345. Depreciation.13) 267.00 520.519. Amortization.017.10 35.15/.80 138.80 100.880.40 500.934.28 2.10/.25) 1. 2010 (being the book closure date for the purpose of the said dividend entitlement) for 2009-10.749.70 crores) resulting in a payout of 44% of the unconsolidated profits of the Company.71 8.25) 335.28 1.829.52 (1. 2010.017.each (previous year.Rs. the Directors have recommended a dividend of Rs. FINANCIAL PERFORMANCE SUMMARY Company 2009-10 2008-09 A FINANCIAL RESULTS (i) (ii) (iii) (iv) (v) (vi) (vii) (ix) (x) (xi) (xii) Gross Revenue Net Revenue (excluding excise duty) Total Expenditure Operating Profit Other Income Profit before Interest.89 1177.50 per share) and any further Ordinary Shares and/or ‘A’ Ordinary Shares that may be allotted by the Company prior to August 12.90 3.25) (2.66) 38.94 crores (previous year .96) 339. The said dividend.31 70.97 95.95 364.99 3.522.240.13 2.568.62 267.73 925.905.685.553.32 13.782. 13 .00 991.58 (1.560 ‘A’ Ordinary Shares of Rs.793.995.64 1.95 68.50 per share on 64.94 1.56 2854.178.15.99 10.50 798.16 1.00) (40.414.345.103.240.73 23.Directors' Report TO THE MEMBERS OF TATA MOTORS LIMITED The Directors present their Sixty-Fifth Annual Report and the Audited Statement of Accounts for the year ended March 31.Rs 6. in crores) Tata Motors’ Group 2009-10 2008-09 (xiii) Tax Expense (xiv) Profit / (Loss) After Tax (xv) Share of Minority Interest and Share of Profit/(Loss) in respect of investments in associate companies (xvi) Profit / (Loss) for the year (xvii) Balance Brought Forward from Previous Year (xviii) Credit taken for Dividend Distribution Tax for Previous Year (xix) Amount Available for Appropriations B APPROPRIATIONS (a) (b) (c) (d) (e) Debenture Redemption Reserve General Reserve Other Reserves Dividend (including tax) Balance carried to Balance Sheet DIVIDEND Considering the Company’s financial performance.08 1.41 673.26 1.383.614.516.6/.064.25 83.45 2.553.70 1.45 28.196. Amortisation & Product Development Expenses Profit / (Loss) for the year before Exceptional items & Tax Exceptional items Profit / (Loss) Before Tax (viii) Cash Profit 6.079.567.129.239.76 12.44 925.07 15.877.10/.399.73 1.Rs.12 74.00 500. Exceptional items & Tax Interest and Discounting Charges (Net) Depreciation.26 1.68 2.46 1.926.176.093.each (previous year.031.167.85 (1.764.05 31.684.57 4385.75 2.013.96 (Rs.29 1.407.60 3.08 1.

4%.020 vehicles.567 crores.2% in 2009-10. Sale of 33. in this background and with a strong portfolio coupled with successful launch of new products and variants in commercial vehicles and passenger vehicles.6% in the previous year).5% loss in the domestic market share reducing it to 64.862 vehicles in 2009-10.625 low entry buses to Delhi Transport Corporation and delivery of major portion of the orders of over 5.7% (stable compared to 13.842 vehicles achieving a robust growth of 40. 14 .9% over previous year and a market share of 64.161 vehicles and a market share improvement to 63. a growth of 34% over previous year (472. The volume growth coupled with other actions on pricing and cost reduction enabled the Company to achieve significant improvement in EBIDTA margin to 11. sales of the Nano and the Fiat Punto.129 crores in 2008-09) and Consolidated Profit for the year was Rs. Ace EX.2. A strong product portfolio.551 units.4% share in the previous year).9% over the previous year and also the highest ever sales by the Company in this range.95. a growth of 34. The Company’s turnover. a growth of 29% over previous year contributed mainly by market recovery. While this was largely aided by the growth in the small commercial vehicles. was Rs. The Company launched new variants on the Ace platform.240 crores also grew significantly over the previous year by 179. Commencement of sales of Nano in July 2009 and completing deliveries of 30. The automotive sector in India started the year steadily.364 crores. The Indian economy bounced back quickly and strongly growing at 7.5% share in the industry (improving from 24. in the previous year).7% against the last year and as a result the market share dropped to 12. A snapshot is given below. The Tata Motors’ Group turnover was Rs. Super Ace and the 407 Pickup which are expected to help in gaining volumes. Consolidated Profit Before Tax was Rs.2.3% over previous year and a market share of 13.2% to 218. gathered momentum in different segments in the second half of the year and ended the year with a record growth and performance.681 LCVs. - Passenger vehicle sales were 260.000 buses under JnNURM Scheme of Government of India for modernizing the public transport in India.3% over the previous year.3% (from 61.Sixty-fifth annual report 2009-10 Tata Motors Limited OPERATING RESULTS AND PROFITS After the economic downturn and difficult market conditions in the automotive sector globally in 2008-09.885 vehicles) in the domestic market in India.9% in the previous year).507 Multi-Utility Vehicles (MUVs). launch of the next generation of heavy trucks .4% in FY 2009-10. improved realization and successful launch of new products.38. Commercial vehicle sales were highest ever at 373. The Grande Mk II which was launched in December 2009 has been well accepted in the market and is expected to help in regaining market share in the UV segment. The Profit Before Tax of Rs.2. over previous year).763 cars to the customers and commencement of trial production in the Sanand plant.571 crores (Loss of Rs. growth of 36. The competition in the small commercial vehicle range increased resulting in a 0.8%.3. a decline of 14.2.2.5% to 155.7%.Prima range. achieving a growth of 25. the rest of the segment also grew handsomely.830 crores and Profit After Tax of Rs. contributed to the significant improvement in overall performance. The Company continues to be amongst the top three players in the passenger vehicle market which has over 25 players.7% (6. The Light Commercial Vehicle (LCV) sales recorded a spectacular growth of 45.8% in 2008-09).7% respectively. VEHICLE SALES AND MARKET SHARES The Company recorded a sale of 633.2% (a gain of 0.505 crores in 2008-09). The Company’s sales increased by 44. highest ever.4%. during the year. The growing sales of the new generation Indica Vista and successful launch and market response for the Indigo Manza mainly contributed to the growth. economies across the world (with a few exceptions) showed signs of recovery and growth.523 crores (Loss of Rs. The performance of the Company and its subsidiaries is elaborated in the Management Discussion and Analysis Report which forms a part of this Annual Report. The Indigo range sales of 54. increase in market share to 13. Some of the key highlights were: In the Small Car segment. mainly due to the launch of the Indigo Manza in October 2009.3% (as against 12. extensive efforts in marketing and finance enablement for customers and leadership in market research and penetration.1% and 123. with the growing sales of Indica Vista. completion of delivery of 1. Some of the key highlights were:In M&HCV. successful launch of new products and variants. representing a 25. a growth of 10.

396 vehicles across its entire range of products and markets. powertrain offerings and 2010 model year vehicles. which resulted in large numbers of non-production shifts in the 3 UK plants (Castle Bromwich.5%).806 vehicles during the year as compared to 1. TMF’s strategy on controlling. The Company also undertook several initiatives.319 crores (59. Jaguar Land Rover continued to enhance its product offerings through an all new XFR.1. - - TATA MOTORS FINANCE LIMITED. The Company has also submitted GRI report for 2008-09 based on G3 Guidelines of sustainability reporting framework. HUMAN RESOURCES & INDUSTRIAL RELATIONS Industrial Relations were cordial at all locations. The communication on progress during 2009-10 was submitted to the United Nations Global Compact.213 units) as compared to Rs.a global social accountability standard for working conditions.137 vehicles in the previous year.9% to 6.231 vehicles. certifying labour practices at the facilities including those of suppliers. Total disbursements were Rs. In Thailand. The key highlights were: The Company has sold 667. (a segment share of 10. employee development and training.123 crores (96.7% to 27. The new Jaguar XJ was unveiled in London in July 2009 and had its public debut at the Frankfurt Motor Show in September 2009.5. For passenger cars.467 units) during the previous year. the plants at Jamshedpur. including on-line tools for performance improvement. The Company’s international business remained affected by the economic downturn in many of the key markets.971 vehicles.348 vehicles in 2008-09 (in 10 months since Tata Motors acquisition of the business in June 2008). At Jaguar Land Rover.CUSTOMER FINANCING INITIATIVES The vehicle financing activity under the brand “Tata MotorFinance” ( TMF) of Tata Motors Finance Limited.144 units) in the previous year. The disbursals for new commercial vehicles were Rs.4.288 crores (41. The Company’s commercial vehicle exports grew moderately by 4.593 units) as compared to Rs. managing and reversing non-performing assets (NPAs) and ‘Risk Scored Pricing Model’ thrust on customer relations and a branch based re-organised field structure has set a robust platform to enable future growth. The Jamshedpur plant obtained a revised and updated certification under SA 8000 . micromanagement of collections.5% in the previous year with Linea sales at 11. In a challenging environment and business conditions. Tata Daewoo Commercial Vehicle Company Limited ( TDCV ) successfully launched the new premium truck platform – Prima.611 vehicles in the previous year. TDCV sales were stagnant at 9. Tata Motors (Thailand) Limited saw a very good response to the CNG version of the Tata Pick-up vehicle – Xenon.1. The Company sold 225 Jaguar and Land Rover vehicles through its exclusive dealerships in India in the first year of the sales of the Jaguar Land Rover brands. a wholly-owned subsidiary company. financed a total of 1.281 (a segment share of 3. improving quality of fresh acquisitions. Towards organizational health and safety. With improved economic outlook and market recovery and with the new product range.6. In South Korea.- Sale of 24. Tata Motors’ Group sales were 880.3. Halewood and Solihull). Jaguar Land Rover achieved sale of 193.011 vehicles in Korea and international markets as compared to 9. TMF has shown improvements in disbursements as well as Net Interest Margins. The market share in terms of products financed by the Company increased from 22. The key highlights in the human resources and industrial relations were:The Company’s plant at Uttarakhand was conferred with the prestigious Golden Peacock Award for Safety & Environment and the National Award for energy conservation by the Ministry of Power.697 crores as against Rs.884 Fiat cars which has given Fiat a 1. The Pune plant received the Frost and Sullivan Green leader award for 2009 in the automotive sector.900 crores in the previous year. total disbursements were Rs. mainly driven by the overall economic recovery coupled with a strong focus on controlling costs.454 crores (48.1%) and the Grande Punto sales at 13. the year under review was dominated by the economic downturn and the need to cut costs quickly.4% in commercial vehicles to 26% and remained constant at 21% in passenger cars.44. the Company expects significant improvement in its international business in the future.102 nos.878 vehicles and passenger vehicles exports declined by 9. the support from the workforce and unions was positive throughout.3% market share as against 0.00.982 vehicles as compared to 167. Uttarakhand and Lucknow are certified under OHSAS 18001. Pune. Jaguar Land Rover worked closely with its Trade Unions and negotiated a Framework Agreement which secured £68 million - 15 .

2% Coupon Non-Convertible Debentures (NCDs) with premium on redemption and Rs. Ltd. the Company made a limited period enhanced conversion offer to the non-U. the Company raised Rs.9:1 as at March 31. All Jaguar Land Rover sites have been prepared to commence certification process for OHSAS 18001 external accreditation for Health and Safety standards. renewal of a US$200 million loan.Sixty-fifth annual report 2009-10 Tata Motors Limited of cost savings. It closed its Defined Benefit pension scheme to new workers with effect from April 24. In a challenging financial market environment. For borrowing in local currency the rating was revised to A+ (Stable Outlook) by Crisil and to LA+ (Stable Outlook) by ICRA.16. Knowledge Based Engineering tools and enhanced digital collaboration with vendors. the Report and Accounts are being sent to the shareholders excluding the aforesaid Annexure. 2010 stood at Rs. though significantly bought down from 5. Credit Enhanced.200 crores from the issue of 9. till December 2010.625. opting to convert their bonds into Ordinary Shares. The Company had 482 employees who were in receipt of remuneration of not less than Rs. The Board is conscious of this. Any Shareholder interested in obtaining a copy of the same may write to the Company Secretary. which resulted in debt of US$ 345 million being extinguished against the issue of 26.165. Further. 1956 and the Rules made thereunder is provided in the Annexure forming part of the Report. - - - Jaguar Land Rover completed guarantee arrangements to facilitate the drawdown of a £338 million loan from European Investment Bank for its projects aimed at emission reduction. in favour of Hitachi Construction Machinery Co. The key highlights were:In 2009-10. The Information required under Section 217(2A) of the Companies Act. In terms of Section 219(1)(b)(iv) of the Act. Tata Motors’ Group debt:equity ratio in the operations continues to remain high at 4.3:1. 2 lacs per month during any part of the said year.4. the Company successfully rolled over in May 2009.S. The major initiatives undertaken were:in Product Development/Engineering. besides other financing activities like an inventory financing facility. FINANCE The borrowings of the Company as on March 31. 16 . Listed.51 crores (net of expenses) resulting in the Company’s shareholding being reduced to 40% (on consolidated basis). 3D design visualization capability. enriching digital content by adding behaviour to digital models. the Company was able to prepay this loan facility in October 2009 from certain divestments. US$ 375 million from the issue of Global Depository Receipts and US$ 375 million from issue of Foreign Currency Convertible Notes. INFORMATION TECHNOLOGY INITIATIVES Tata Motors' Group continued to reinforce its IT capabilities in all areas of business in design/ engineering. and repaid short term borrowing totaling £220 million. by introducing a Defined Contribution scheme. (Hitachi) for a consideration of Rs. and the need to strengthen the long-term funding for the business. commencing July 2010.152.64 million Ordinary Shares. The Company will further consider suitable steps to de-leverage and hence de-risk the balance sheet from volatility and has also taken and will continue to implement suitable steps for raising long term resources to match the Company’s fund requirement and to optimize its loan maturity profile.24 lacs during the year or Rs. The Company’s rating for foreign currency borrowings was revised by Standard & Poor to B (Positive Outlook) and by Moodys’ to B3 (Stable Outlook).1.91 crores (previous year Rs. the bridge finance it had obtained for acquisition of the Jaguar Land Rover business for a period of 18 months. 2010. Subsequently.760 million and 1% US$ 300 million Convertible Notes.95% Secured NCDs. improved cash generation from operations and also through fund raised.200 crores from the issue of Secured. The Company also sold 20% stake in Telco Construction Equipment Company Limited ( Telcon).13. 2009. vendor interface and dealer/customer interface functions. holders of the 0% JPY 11.56 crores). Rated. The offer met with great success with bondholders representing 93% of the JPY bonds and 76% of US$ series bonds. manufacturing.

Supplier portal. France and China. Brazil. with class leading C02 performance and technology is under development. which facilitates close collaboration from design/development stage to production planning and scheduling. giving the Company an on-line real-time market and customer interaction and information capability. Jaguar Land Rover completed the process of separating its operations in markets where it previously operated as a part of the Ford legal entity and the process to separate the IT infrastructure and support systems is expected to be completed shortly.- Digital manufacturing solutions and validation was extensively deployed for the Nano facilities planning. will be enriched through several product and application variants such as tractor trailers. Jaguar Land Rover also rolled out its new SAP solution to many of its existing National Sales Companies around the world including South Africa. whilst also showcasing increased use of Aluminium and composites for exterior body panels to reduce weight.FRIENDLY INITIATIVES Product Development Tata Motors' Group continuously assesses customer needs to develop new and innovative products which deliver better value to its customers. In pursuance of this strategy. which further enrich the on-line common platform system for the Company’s sales. Magic Iris and the micro-truck Ace Zip. The Ace EX and Super Ace have been launched and the Company will introduce the multi-purpose vehicle. covering every aspect of Product Lifecycle Management (PLM) from concept to recycling. the passenger vehicle variant. Venture. India's first indigenously developed crossover vehicle. The New XJ launched in early 2010-11. The Range Rover Evoque. - - - Development of Environment-friendly Technologies As a responsible automobile manufacturer. delivering a system that will provide everyone with immediate access to all Product Creation information. highest standards of personal luxury and specifications. showcased at the last Auto Expo is expected to be launched in the first half of 2010-11. - Tata Technologies Limited continues to be a key strategic partner in several of these technology initiatives. and development on a range of light trucks is underway. The new range of buses (based on the Prima platform with bodies being made by Tata Marcopolo displayed at the Delhi Auto Expo in January 2010) have been launched. Variants of the Nano. to suit specific needs of the domestic and international markets are being developed. Increased thrust is being made to explore opportunities for launch of the Indica Vista and the Indigo Manza in various international markets. In small commercial vehicles. Jaguar Land Rover has initiated a major programme to re-engineer Product Creation capability. call centre and SMS. Jaguar Land Rover launched to the world. The product will showcase technology features including 'Park-for-you' and 'Magna-ride' to deliver outstanding Chassis dynamics. NEW PRODUCT. Some of the key initiatives and projects include :The new heavy truck range Prima unveiled in May 2009. rigid trucks over the next few years. the Intea and is working on developing a range of other buses. features the next generation Jaguar's aerospace-inspired aluminum body architecture enhanced power train with ultra efficient petrol and diesel engine variants. The Aria. Tata Motors' Group aims to develop vehicles and technologies to reduce the carbon footprint by developing vehicles running on alternative fuels and hybrids such as: 17 . amongst which is its instrument cluster with a 12" thin film transistor (TFT) screen. with simple-to-use. North America. tippers. TDCV received the Grand Prize of 2009 Good Design Selection of Korea for the Prima. manufacturing Execution systems implemented in the high-volume plants at Uttarakhand and Sanand. Extension of customer touch points through web. CRM-DMS program enhancements. a new more compact product. the Company has developed significant in-house capabilities and works with a range of partners to keep its product profile rich and meet market expectations. Tata Hispano has developed a new Intercity Coach the Xerus and a new Suburban Bus. spare parts service activities and for all channel partners. the Ace platform is being exploited to introduce variants to address various market segments. the beginnings of its response to Environmental and C02 challenges with more compact and efficient vehicles. In July 2009. graphically-orientated user interfaces. TECHNOLOGY AND ENVIRONMENT .

automatic transmissions and weight reduction of components. Land Rover Parts Limited and Land Rover Parts US LLC. resulting in Telcon and its 5 subsidiaries. Despite the severe financial conditions of the last 12 months. JaguarLandRover Limited. Magic. Comoplesa Lebrero S.. Consequently. a subsidairy of JaguarLandRover Limited were liquidated. Over 2200 CNG fuelled buses were supplied to Delhi Transport Corporation. - - - - - SUBSIDIARY/ASSOCIATE COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS a. the Company has secured its position in research and development of electric vehicle technology. Tata Motors (Thailand) Limited was the first OEM to offer a factory fitted CNG variant of the Xenon pickup in the Thai market. Ltd. series and parallel hybrid solutions and plans to display the vehicles during the Delhi Commonwealth Games in October 2010. Consequently its wholly owned subsidiary Carrosseries Hispano Maghreb. These vehicles will be launched in the European markets. an extensive range of new technologies are under development for future programmes including 'Series' and 'Parallel' hybrid vehicles. Companies ceasing to be subsidiary companies: The Company partially divested 20% stake in Telco Construction Equipment Company Limited (Telcon) in favour of Hitachi Construction Machinery Co. The Company is simultaneously working to introduce a range of technologies.Sixty-fifth annual report 2009-10 Tata Motors Limited Development of a complete range of CNG vehicles including Ace. viz. Hybrid technologies offer perfect solutions for certain commercial vehicle applications. The Company is working on both. (TDCV) pioneered the development and introduction of the first Liquefied Natural Gas (LNG) tractor trailer and the LPG MCV truck in the South Korean market. the following changes have taken place in subsidiary companies: Subsidiary companies formed/acquired: Tata Hispano Motors Carrocera S. displayed at Zaragosa exhibition in 2008 and Vista EV displayed at Geneva Motor show in 2009. Ace EV. radial tyres for commercial vehicles. viz. are in advanced stages of development. Limited Liability Company "Jaguar Land Rover" (Russia). During the past 12 months.A. Indigo and also trucks and buses. especially the northern European market where there are strong fiscal incentives for such vehicles in the urban city centers. with the first generation of full parallel hybrids moving towards application readiness later this year.A. subsidairies of Tata Technologies Limited and Jaguar & Land Rover Asia Pacific Company Limited. A mild-hybrid on the Ace platform . (Hispano) became a subsidiary consequent upon the Company exercising its put option and increasing its stake from 21% to 100%. The 10 model year programmes delivered a range of advanced technologies including Dual View Screen (world first). Jaguar Land Rover has continued to invest heavily in process and product research. Tata Daewoo Commercial Vehicle Co. Serviplem S. The Company is working on developing Diesel and CNG hybrid solutions for city bus applications in India and also in Spain through its subsidiary Tata Hispano. Tata Hispano received a grant from the Spanish Government for the development of a Hybrid Low Floor City Bus. INCAT KK and Lemmerpoort BV. the Company’s subsidiary formed the following subsidiaries. Other projects include Limo-green (series Hybrid). some of which have been successful in securing government funding. ceasing to be subsidiaries of the Company in March 2010 and have become associate companies. Continuously Variable Damping. Power train downsizing.Ace Ex with a start-stop arrangement which delivers a saving in fuel consumption in heavy traffic conditions was launched in the previous year. Xenon. Miljo Innovasjon AS was merged with Miljobil Grenland AS. electric power steering. Auto Headlamp Dipping and Advanced All-Round Camera features. 18 .L. A. Morocco also became the Company's subsidiary. On the electric vehicle range. 120 technology projects have been progressed toward implementation on future programmes. its stake in Telcon was reduced to 40% (on consolidated basis). EV transmissions. low resistance tyres. Jaguar Land Rover Brazil LLC. All of these were well received by the press and customers alike and served to raise the technology image of Jaguar Land Rover products. During the year. INCAT Holdings BV. Further. Winger. Inner Mongolia North Baryval Engineering Special Vehicle Corporation Ltd and Eurl Lebrero France. which will help in reducing fuel consumption on its petrol and diesel powered vehicles such as improved fuel injection systems... Ltd (Hitachi).. etc. Baryval Assistencia Tecnica S.

from INCAT Systems Inc.. Maharashtra is engaged in the manufacture of Tata and Fiat branded products as well as engines and transmissions for use by both the partners. Consequently Telcon is owned 60% by Hitachi and 40% (on consolidated basis) by Tata Motors. in which the Company divested a further 20% stake during the year in favour of Hitachi. assemblies and bus coaches and is the largest supplier of buses (mainly for exports) to the Company.87. 1956. manufacture and sale of construction equipment and allied services.f. the Central Government exempted the Company from attaching a copy of the Balance Sheet and the Profit and Loss Account of the subsidiary companies and other documents to the Annual Report of the Company. Tata Technologies (Canada) Inc. Nita Co. TCL is engaged in the manufacture and sale of high horse power engines used in the Company’s range of M&HCVs. in which the Company has a 49. S.45 crores from 2. in which the Company has a 50% shareholding. The aggregate amount collected under fixed deposit scheme as on March 31. The same would also be posted on the website of the Company. Ltd. Tata Precision Industries Pte. Tata Hispano Motors Carrocera S. Associate companies As on March 31.A.V from Integrated Systems de Mexico. Automobile Corporation of Goa Ltd. de C. . 2010 was Rs. Inc. in which the Company holds 40% equity.. Consolidated Financial Statements of the Company is attached. (ACGL). associates and joint venture have been considered in the Consolidated Financial Statements of the Company. Tata AutoComp Systems Limited (TACO) is a holding company for promoting domestic and foreign Joint Ventures in auto components and systems and is also engaged in engineering services. ACGL is a listed company engaged in manufacturing sheet metal components. the subsidiaries. Telco Construction Equipment Co. the said documents are not being attached with the Balance Sheet of the Company. The scheme has received an overwhelming response and the management of the Company is thankful to all the investors for participating in the scheme and the faith reposed in the Company.173. The Company’s shareholding in TACO is 26%. 2010. is engaged in the assembly of TATA vehicles for the Bangladesh market. is engaged in the business of development. b. supply chain management and after market operations for the auto industry. The Company will make available these documents/ details upon request by any member of the Company or its subsidiary companies who may be interested in obtaining the same and will also be kept open for inspection by them at the Registered Office of the Company and at the Head Offices of the subsidiary company concerned. de C. 19 c. The Company has discontinued the acceptance and renewal of deposits w.Name changes: Tata Technologies Inc. Ltd.V. with Cummins Engine Co.37% shareholding. 2010. On an application made by the Company under Section 212(8) of the Companies Act. 3. The Company has no overdue deposits other than unclaimed deposits.343 depositors. Tata Technologies de Mexico. Ltd. issued by the Institute of Chartered Accountants of India.A. a Company in which Tata Motors Limited has a 42. a 50:50 joint venture company between Tata Motors Limited and Fiat Company located in Ranjangaon. from INCAT Solutions of Canada Inc. S. (TELCON). Singapore. jointly with EDC Limited (a Goa government enterprise). FIXED DEPOSITS In December 2008. Fiat India Automobiles Limited. from Hispano Carrocera S.. was incorporated in 1980.A. USA holding the balance.2009-10’ in the Annual Report. the Company launched a public fixed deposit scheme to meet a part of the funding requirements of the Company. is engaged in the manufacture and sale of high precision tooling and equipment for the computer and electronics industry.e. May 28.A. Accordingly. As required under the Listing agreement with the Stock Exchanges. Bangladesh. the Company had the following associate companies: Tata Cummins Limited (TCL). Jaguar Land Rover Nederland BV from Land Rover Nederland BV. The gist of financial performance of the subsidiary companies for FY 2009-10 are provided under ‘Subsidiary Companies: Financial Highlights .99% shareholding. In accordance with the Statement of Accounting Standard on Consolidated Financial Statements (AS 21) and the Accounting Standard on Accounting for Investments in Associates (AS 23) and Accounting Standard on Accounting for Joint Ventures (AS 27).

who are the Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting. Investors’ Grievance Committee and Ethics and Compliance Committee and has added value to deliberations at Board/Committee Meetings. 1956.f. Mr R Gopalakrishnan. Cost Audit As per the requirement of the Central Government and pursuant to Section 233B of the Companies Act. DIRECTORS’ RESPONSIBILITY STATEMENT: Pursuant to Section 217 (2AA) of the Companies Act. Registration No. furnished a certificate of their eligibility for re-appointment.e. the Company has appointed M/s Mani & Co. under Section 224(1) of the Companies Act. market swings. the Directors. 1988. AUDIT M/s Deloitte Haskins & Sells (DHS). Mr Gopalakrishnan was also a Member of the Executive Committee of the Board. 1956 has been sent to the members of the Company. 1956. recent acquisitions and its financing/refinancing. 1956. TECHNOLOGY & FOREIGN EXCHANGE Details of energy conservation and research and development activities undertaken by the Company along with the information in accordance with the provisions of Section 217(1)(e) of the Companies Act. read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. financial management and accounting and capital market matters. June 1.e. w. Mr Soonawala had by his counsel and guidance tremendously contributed to the Company over the years in its strategic direction and in its financial structure. 1956 and the Articles of Association of the Company. who retires by rotation at the ensuing Annual General Meeting has conveyed his decision not to offer himself for re-appointment. are given as an Annexure to the Directors’ Report. the applicable accounting standards have been followed and that there are no material departures. CORPORATE GOVERNANCE A separate section on Corporate Governance forming part of the Directors’ Report and the certificate from the Practicing Company Secretary confirming compliance of Corporate Governance norms as stipulated in Clause 49 of the Listing Agreement with the Indian Stock Exchanges is included in the Annual Report. to audit the cost accounts relating to motor vehicles for the Financial Year 2010-11. March 31. have helped the Company in meeting its aspirations to become a truly global Company. DHS have. Mr Carl-Peter Forster was appointed as Chief Executive Officer and Managing Director of the Company w. Subject to the approval of the Central Government. Mr Soonawala was on the Board for more than 20 years and was a Member of the Executive Committee of the Board. 2010 in accordance with Section 260 of the Companies Act. The Board at its meeting held on May 27. the Company carries out an audit of cost accounts relating to motor vehicles every year. 2010 in accordance with the ‘Policy for Retirement Age of Non-Executive Directors’ adopted by the Company. 2010. confirm that: in the preparation of the annual accounts. 1956. stepped down from the Board of Directors w. It is proposed to re-appoint them to examine and audit the accounts of the Company for the Financial Year 2010-11. An abstract and memorandum of interest under Section 302 of the Companies Act. The Directors place on record their appreciation of the contribution made by Mr Gopalakrishnan during his tenure as Director of the Company. 1956 and Article 132 of the Articles of Association of the Company. The Directors place on record the debt the Company owes to Mr Soonawala in contributing to the Company’s growth and premier position in the automobile industry. M/s Ratan N Tata and R A Mashelkar are liable to retire by rotation and are eligible for re-appointment. April 1.f. DIRECTORS Mr N A Soonawala who had been on the Board of the Company since May 1989. a Director of the Company since December 1998. 117366W. His contributions particularly in areas of capital raising. 2010. Nano relocation. Attention of the Members is invited to the relevant items in the Notice of the Annual General Meeting and the Explanatory Statement thereto. appointed Mr Ranendra Sen as an Additional Director.Sixty-fifth annual report 2009-10 Tata Motors Limited ENERGY. In accordance with the provisions of the Companies Act.f. 20 . based on the representation received from the Operating Management. particularly in times of difficulties such as the global meltdown. Remuneration Committee and the Nomination Committee.e.

All of the Company’s vehicles and engines are compliant with the prevalent regulatory norms in India and also in the countries to which they are exported. Solar Photovoltaic Hybrid System for corridor lighting. LED & CFL lamps. Jamshedpur plant won the Best Entry Award for the Energy Conservation (ENCON) Contest 2009-10 organised by the Confederation of Indian Industry (CII) in the Eastern region (ER).- they have. they have prepared the annual accounts on a going concern basis. introduction of Propane in place of LDO in ovens and heat treatment furnace. Bio-diesel. Conservation of Energy The Company has always been conscious of the need for conservation of energy and has been steadily making progress towards this end.2009 conducted by CII . Government of India. switching off unwanted high bay lights & shop substation transformers.8. The Company’s endeavour for tapping wind energy has also made significant contributions. Technology Absorption The Company has continued its endeavor to absorb the best of technologies for its product range to meet the requirements of a globally competitive market.2 crores.5crores & annual CO2 reduction of 15179 tCO2.5 lakh units and this resulted in savings in electricity charges of Rs. Super Magnetic Dust Separators. shareholders. The Company has also undertaken programs for development of vehicles which would run on alternate fuels like LPG. in the selection of the accounting policies. Banglore. transferring cylinder block core production from Shell Core method to Cold Box method. These changes have resulted in cost savings for the Company of around Rs. May 27.18. to the best of their knowledge and ability. 1956. 21 . for the year 2009-10. B. Ministry of Power. Energy conservation measures have been implemented at all the plants and offices of the Company and special efforts are being put on undertaking specific energy conservation projects like installation of Variable Frequency Drives & Circulation pumps in paint shop . Total energy produced by wind power for this year was 529. they have taken proper and sufficient care. CNG. Western Region. Lucknow has been awarded the Excellent Energy Efficient Unit Award at the 10th National Awards for Excellence in Energy Management . Electric traction etc. ACE Plant at Pantnagar plant won first prize in “Automobile Manufacturing” sector. provision of heat resistive cover for furnaces. Car Plant at Pune bagged the First Prize in Safety. The Directors would also like to thank the employee unions. customers. Wind Ventilators. etc. The company’s CVBU Pune plant was awarded a Trophy and Certificate for “Green India Awards-2009 & was declared as “Green Leader” by FROST & SULLIVAN. dealers. Government and all the other business associates for the continuous support given by them to the Company and their confidence in its management. fixed deposit holders. installation of energy efficient motors. - - ACKNOWLEDGEMENTS The Directors wish to convey their appreciation to all of the Company’s employees for their enormous personal efforts as well as their collective contribution to the Company’s record performance. consulted the Statutory Auditors and have applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.Godrej Green Business Centre at Chennai. Health & Environment (SHE) competition organised by the Confederation of Indian Industry (CII). use of natural light in plant by using Polycarbonate translucent sheets. downsizing of the motors. bankers. 2010 Annexure to the Directors’ Report (Additional information given in terms of Notification 1029 of 31-12-1988 issued by the Department of Company Affairs) A. for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. suppliers. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. On behalf of the Board of Directors RATAN N TATA Chairman Mumbai. an award for “National Energy Conservation Awards-2009” by Bureau of Energy Efficiency (BEE). replacement of forced draft exhaust arrangement by natural draft exhaust arrangement for the extraction of fumes in paint shop.

Australia. UK Porsche. India Delphi. Germany Continental.047. in crores 3. USA AFS. Design & Development of flush sliding and plug Design & Development of Electric Hatchback in windows Vehicle – Indica Vista EV Imported from FEV. UK AVL List GMBH. Colour) Interior Harmony development methodology Acoustic tuning for Infotainment system EMC reliability through design specifications & verification on vehicle Parallel Hybrid Technology for Buses Hardware in Loop (HIL) System and Test Framework development for Body Control Module and Instrument Cluster Technology Provider KPIT Cummins. France 2007-08 Completed Tata Motors European 2008-09 Under Technical Centre plc. Austria Delphi Diesel Systems. Appearance. Germany AEC. Xenon. During the year. b) Spoked flywheel. the company has added facilities such as 440KW High Dynamic Transient Dynamometer with state-of-the-art Raw gas emission measurement facility and intake airconditioning system for developing heavy duty commercial vehicle engines up to 8 L.170. The Company has also added a variety of testing facilities and equipment such as Sound Quality Studio. etc.1. 30 Designs and 34 Copyrights were registered to the Company for applications filed in the earlier years. MCV & HCV engines Stop-Start feature for various vehicle platforms Concept -Automated Manual transmission for commercial vehicles Multiplexed wiring systems for bus platforms Gas Injection technology for Ace. Foreign Exchange Earnings and Outgoing Earnings in foreign currency Expenditure in foreign currency (including dividend remittance) Rs.56 2. Australia Lucas. the Company has filed 150 Patent applications. Canada AEC. 44 Design applications and 78 Copyright applications. d) Dual mass flywheel system.398. France M/s Torotrak (Holdings) Ltd. Six Patents were granted. implementation UK (TMETC) During the year the Company spent Rs. Winger engines Engine Management for Series Hybrid Technology for Buses Design & Development of New Generation engine platforms for LCVs and UVs Design & Development of New Generation engine platforms for ICV / MCV Design & Development of Infinitely variable transmission based on full toriodal traction-Drive variators for various vehicle platforms. The Company has developed following new technologies/methods and processes for its range of passenger cars and commercial vehicles such as: a) Plastic balance gears. UK Continental. USA Prodrive. Light. India Status Completed Completed Completed Completed In Progress Completed In keeping with the requirement of technological up gradation of its engines development facility. Spain Eaton KPIT. cost effective telemetry based measurement system for pass by noise. USA IDIADA-NSI. Ricardo UK Ltd. Acoustic transmission loss test rigs for specific body panels.29% of the net turnover. wheel force transducers to gather road load data in a single set up and has also indigenously developed in-house capability to conduct side pole impact crash tests. UK Year of Import 2007-08 2008-09 2009-10 2009-10 2009-10 2009-10 Status Under Implementation In Progress In progress One Unit imported as Technology Demonstrator Completed Completed Completed In Progress Under implementation Completed Under implementation 2009-10 2009-10 2009-10 2006-07 2007-08 2007-08 Wagon SAS. Major Technology imports include: Technology for Development & application of a two cylinder common rail diesel engine for small passenger car and small commercial vehicles.97 crores on Research and Development activities including expenditure on capital assets purchased for Research and Development which was 3. C.Sixty-fifth annual report 2009-10 Tata Motors Limited Major Technology absorption projects undertaken during the last year include: Technology for Model based development for Engine Stop Start functionality TALC (Touch. Gas Injection technology for LCV. c) Mass dampers on rear suspension arms.70 22 . Germany Delphi.

coupled with its 23 .6% higher than the previous year.842 vehicles. which had showed a decline of 0.0% Company market share (%) 2009-10 64. The industry performance in the domestic market during 2009-10 and the Company’s share is given below:Category Industry sales (Nos.020 vehicles in the domestic market on the back of the launch of the Nano and the Indigo Manza.842 2008-09 Growth 2009-10 113.8 265. The market recorded significant growth in the second half of the year mainly due to a buoyant economy and easy availability of credit.481.) Company market share (%) 2008-09 62.475 582. The GDP grew by 7. The commercial vehicle industry grew by 40.5 2008-09 63. With single digit inflation. The Company reported domestic sales of 373.145 28. 2010.5% in the previous year.9% over the previous year. This can be attributed significantly to the growth in the Index of Industrial Production (IIP) which grew steadily from a very low growth in the initial part of the year to significantly higher growth towards the end of the year. albeit at costs higher than the historical lows. due to the slow recovery in major international markets. India was due to migrate its emission norms to the Bharat Stage IV in the 13 metro cities and Bharat Stage III in the rest of the country. the growth in volumes in the CV market.4 Commercial Vehicles* Passenger Vehicles# Total 2009-10 2008-09 Growth 2009-10 582.Management Discussion and Analysis Business Overview As the Indian economy bounced back and grew by 7. a robust growth of 40. The passenger vehicle industry.7% during the year.5% 63. The commercial vehicle sales increased to 373. was seen across all segments. Aided by these.6 24.697 36.373 40. the monetary policies of the Government were relaxed leading to a fair availability of vehicle finance in the market.538 Company sales (Nos.682 1. A strong product portfolio.7 25.538 415.724 40.373 40.0 65. The Company’s exports increased by 1.161 232.538 units in 2009-10. the IIP growth rate for 2009-10 was 10. Due to the imminent increase in vehicle prices as a result of the technological changes in the vehicles conforming to new regulations.) Company sales (Nos.8 2008-09 Growth 2009-10 183.9% 64. Through its continued focus on new product development. at 401.3 63.1% 373.3 151. The passenger vehicles volumes grew by 25. were 37.971 vehicles in 2009-10 in the domestic and overseas markets. the automotive industry in India recorded steady growth in the first two quarters and recorded significant growth in the last two quarters of 2009-10. From April 1.937.4% in 2008-09.4% in 2009-10 as compared to preceding year. The domestic industry performance during 2009-10 and the Company’s share is tabulated below:Domestic Category M&HCV LCVs* Total Industry sales (Nos. The commodity prices also remained stable for most part of the year thereby keeping the input costs in check.5% 155.3% 472.899.676 44. The Company recorded its highest ever sales in the domestic commercial vehicle market.8 13.2% 64.) 2009-10 245.9% 207. the Company launched many new products and variants in the market.512 25.063 337.8% for the previous year.144 1. there was a spurt in the demand in the last quarter.4% as against 2. # including Fiat & Jaguar Land Rover branded cars The input prices remained stable for most part of the year. Fuel costs remained fairly stable during the year benefited by the stable international crude oil prices.862 Source: Society of Indian Automobile Manufacturers report and Company Analysis * including Magic and Winger sales.) 2008-09 Growth 265. The growth in IIP was seen across all sectors and segments.1% compared to the decline of 17.2 Source: Society of Indian Automobile Manufacturers report and Company Analysis * including Magic & Winger sales The Company’s commercial vehicle sales in the domestic and international markets.885 34.2% in 2009-10. grew by 24.3% 218.521.421 24. The Company continued its cost reduction efforts to improve profitability.208 45.1% which resulted in the highest ever sales of 582. All these factors resulted in the Indian automotive industry posting a significant and profitable growth in 2009-10.9% and the Company consolidated its leadership position by introducing new products to complement its existing product portfolio. Industry Structure and Developments Commercial Vehicles The domestic Commercial Vehicle market in 2009-10 recorded a robust growth of 40.3% to 260.720 vehicles.2 13.9% to 667.1% 633.681 415. Cumulatively.516 33.724 40.842 1.8% 260. an increase of 40.020 2.842 in the domestic market.8% in 2009-10.1% 373. The Company’s total sales increased by 31.

000 buses. the Company plans to launch variety of models.726 245. the range of its next generation of heavy trucks – Prima. Tata Ace sales continued to record higher volumes despite completing almost 4 years and its success is unmatched in the Indian auto industry.160 37.03 lakhs bookings for the Nano after the launch in March 2009.763 Nanos from its Uttarakhand facility. A large share of this was driven by a recovery in the economy as well as fiercely increasing competition with the entry of global automobile manufacturers. With deliveries commencing from July 2009.3% 225. The Company also rolled out the Tata Nano in July 2009.144 1. The market share of the Company increased from 62. The Company unveiled in May 2009. the Company improved its overall market share to 13.) 2009-10 2008-09 Growth 2009-10 2008-09 Growth 1.020 207. the Company recorded sales of 266. is tabulated below:Domestic Category Small Car (mini + compact) Midsize Car Utility Vehicle/SUV Total Passenger Vehicles# Industry Sales Company Sales* (Nos.3% in the previous year. the highest ever for the Company.625 low floor entry Marcopolo buses to Delhi Transport Corporation (DTC) in 2009-10. The Prima sales have started and over the couple of years.093 115.386 27.899. The small car industry continued to be the fastest growing segment of the passenger vehicle industry with a growth rate of 27. the Company unveiled the Magic Iris and the Venture in the passenger carrier range and also the new range of buses powered by the next generation of LCVs. the rest of the segment comprising the 4 and 7 tonne segments also grew handsomely.507 39.) (Nos.Sixty-fifth annual report 2009-10 Tata Motors Limited leadership in market penetration/reach and extensive efforts toward finance enablement for customers helped the Company in increasing its market share in the last year. commercial vehicle exports also grew by 4.3% Company Market Share* (%) 2009-10 2008-09 13. Super Ace which are expected to help in gaining additional volumes going forward.6 13. At the Auto Expo in January 2010.512 25.4% 158.9% over the previous year. passenger vehicle exports declined by 9. by the downturn in the previous year. The Company’s model LPT 3118 was well received in most domestic markets and aided an increase in M&HCV sales.4%. Passenger Vehicles The sentiment in the year 2009-10 was significantly positive as compared to the previous year.5% to 64. The Company continued to be amongst the top three players in the Indian passenger vehicle market with domestic sale of 260.3% 33. The Indica Vista launched in the previous year continued to receive increasing market acceptance and the Indigo Manza launched in October 2009 was extremely well received in the market.8% over last year.7%. The Company secured orders for over 5.251 vehicles (including Fiat & Jaguar Land Rover) in the domestic and overseas market. The Company launched specific products in both these segments which helped increase in volumes and market shares. a significant portion of which have been supplied in 2009-10 and the balance will be supplied in 2010-11. The Company launched new variants on the Ace platform.057 29. its highest ever and with a market share of 13. The LCV segment showed spectacular growth throughout 2009-10 and grew by 45.421 24. While this was largely aided by the growth in the small commercial vehicles. The Company also launched the 407 Pick-up which was well received and is expected to increase sales of pick-ups.724 223.300 935.020 vehicles. These products would be in commercial production in 2010-11 and would assist in improving the Company’s market share. a total of 25 models now compete for a share of this attractive market. rigid trucks. The Company also completed the delivery of the 1.521.295 (14. Growth in the core sectors of the economy benefited the M&HCV segment.3% as against 12.0% to 63.191. With the introduction of 9 new models. The Company continued to gain market share month-on-month on account of new products that were launched and had matured during the year.7 13. 24 . tractors and tippers in the ‘Prima’ range. in addition to 650 buses supplied in the previous year. With construction at the Sanand facility in Gujarat progressing on an accelerated pace. the Government of India announced its intention to procure modern city buses under the JnNURM scheme. With a steady recovery in some key markets.8%. Most of the key international markets were affected more severely than India. As a part of the stimulus package to help the automotive industry during crisis in the previous year as also to modernize the public transportation in the cities. With a slow recovery from the economic turmoil of the previous year in key export markets.3 21.7%) 1.7%. In the domestic market. The domestic industry performance and the Company’s performance in the segments that it operates in.6 12. the Company started trial production in the last quarter of 2009-10 and commercial production at Sanand started in April 2010.3% in this growing market.6 Source: Society of Indian Automobile Manufacturers report and Company Analysis * including Fiat & JLR branded cars # including all segments In 2009-10.571 (8.3%.3 30. the M&HCV segment grew by 33.255 21. The overall recovery in the economy coupled with the introduction of new models in the market.8% 260.1%) 68. resulted in a growth of 24. availability of finance and aggressive pricing by all the players. the Company delivered 30. Ace EX.4 17.3 12. With the growing sales of the Vista and the introduction of the Nano and Fiat Punto.5% on the back of strong growth in the Indian economy.0% 270. The Company received a total of 2.420 53. However competition in the small commercial vehicle range increased with launch of vehicles by competition resulting in the Company losing market share of 0.

which had declined by 6.25.5% last year. reversed the trend in 2009-10 and bounced back.35. a decline of 14.30 (844.5% to Rs. Sale of Spare parts for vehicles increased by 19. With the upturn in economy.2. 25.7) 31.9% to Rs.34.885 units in 2008-09. The Company sold 225 Jaguar and Land Rover vehicles in its first year of launch of the Jaguar Land Rover brands in India.6 10.9% to 667.9% consequent upon launch of the Indigo Manza in October 2009.67) 6.1%.102 units (market share 10.204. deposits and loans given Loss on redemption of investments in Preference Shares held in a subsidiary company Profit before Tax Turnover net of excise duty Turnover net of excise duty increased by 38.187.3 3.629.23 1.212.263. The Company sold 24.2 11. The Indigo CS continued to be well received in the market. leading to market share gain. Depreciation.001.971 units from 506.4 7.1 3.894.1.536 units in 2008-09.604 units during 2009-10. The Indigo range registered an increase of 10.26 crores in 2008-09 had recorded a growth of 123. Percentage of Turnover Turnover net of excise duty Expenditure: Material (including change in stock and processing charges) Employee Cost Manufacturing and other expenses (net) Total Expenditure Other Income Profit before Exceptional Item.302.112.240.68 2.2.60 238.71 crores in 2008-09. growth of 179. The Utility Vehicle market.392. representing 1.92 2.7% to 34.51 crores profit on sale of controlling stake in a subsidiary company and loss of Rs.04 19. growing by 21.9% in 2009-10.10 2008-09 16.91 402. The following table set forth the breakup of the Company’s expenses as part of the net turnover.7% with sales of 176. in crores) % 26.0 71.2 2.54 crores from Rs.3%.3 5.5 3. the Company revenue has grown by 38.281 units (market share 3. marginally increased by 1.9 2008-09 100. The total number of vehicles sold during the year increased by 31.08 crores from Rs. Operating margin was higher due to increase in volumes and cost reduction initiatives taken by the Company.0 49.1% in the upper mid-size car market) and Grande Punto sales at 13. Material (including change in stock and processing charges) Consumption of raw materials and components Purchase of product for sale Processing Charges Change in Stock-in-trade and Work-in-progress Material (including change in stock and processing charges) 2009-10 20.46 (Rs.677.5% in the previous year.850.2.513.862 units from 472.1 0. The Profit before tax includes Rs.6 2.0 107.2 16.32 810. Gross turnover from sale of vehicles including export and other incentives increased by 37.7 6.0% to 633.1.The entry midsize car industry grew at 17.507 units. while export volumes.512.3 4.0 11.593. ending the year with the highest ever sales in the Indigo range in March 2010.095.0 25 . Linea sales at 11.5% in the B compact car market) have assisted the Company in achieving a higher market share.7 5.180. The Grande Mk II launched in December 2009 has been well accepted in the market and the Venture and Aria (unveiled in the Delhi Auto Expo) to be launched in mid 2010-11 will assist in regaining market share in this segment.6 0.40 crores from Rs. The Company recorded Profit before tax of Rs.3% market share of Fiat brand against 0.109 units from 33.86 crores on redemption of investments in preference shares held in a subsidiary company.884 Fiat cars in 2009-10.73 crores in 2008-09.4 2009-10 100. These brands are getting an extremely good response in the market and the Company is increasing its dealership footprint across the country. The domestic volumes increased by 34.332.7%.64 Change 4. Financial Performance as a measure of Operational Performance (on a standalone basis) Overall economic recovery and a benign liquidity environment along with government stimulus have driven domestic demand revival during the current year.9 3.4 93.4% from 17.4 88.6% in the previous year. Interest and Tax Depreciation (including product development expenditure) Interest and Discounting Charges (Net) Exchange Loss (Net) on revaluation of foreign currency borrowings.7% against the last year and as a result its market share dropped to 12.54 crores.90 (606. The Profit after tax which increased to Rs. The Company sold 33.63) 25.416.421 units.1% to Rs.0 75.1.6 (354.829.92 crores in 2008-09.60 4.05 crores in 2009-10 from Rs.

2% to Rs. In order to restructure TMLHPL’s balance sheet.10.925. representing an increase of 179. warranty.1. Profit Before Tax (PBT) of the Company increased to Rs. the expenses have increased to Rs.512.2.23.60 crores. Investments increased to Rs.96 crores as at March 31. higher proportion of ‘Other Income’ not liable to tax/liable to lower tax.26 crores in 2008-09.843.850.259.2 12.1 million at a discount of US$189.90 crores as at March 31.37 as compared to Rs. Singapore (TMLHPL).853.13 crores as at March 31.796.066. Prima and other new products.99%.575. Interest and Tax increased by 125.1%. Profit After Tax (PAT) of the Company increased by 123.6.06 crores as at March 31. Exceptional Items : TML Holdings Pte. While the tax expense continues to be lower as compared to marginal rate of tax of 33.1. Manufacturing and Other Expenses: The manufacturing and other expenses as a percentage of net turnover have remained at 11. on account of overall low profitability.4% for both the years. The increase reflects volume effect.001. the increase in tax rate in the current year is mainly due to the fact that the Company had marginal tax liability in 2008-09.88 (Rs.1.031.62 crores (Rs. 2009.4% to Rs. Depreciation and amortization (including product development expenditure) for 2009-10 increased by 27.16 Change 2. in crores) % 13.2. A significant portion of the volume effect was offset by the Company by raising finances at competitive rates.10 crores from Rs.90 (953.570.08 crores from Rs.12. 2010.852.177.26. The increase represents impact on account of additions to fixed assets towards plant and facilities for expansion and new products.592.103.673. Profit before Exceptional Items. mainly due to higher profit on sale of investments. mainly towards Nano.1. After considering the depreciation the net block represent Rs.648.87 as compared to 23.86 crores. In absolute terms.45 crores from Rs.416.04 2008-09 20. which in turn prepaid the bridge loan taken for acquisition of Jaguar and Land Rover business. 2010 from Rs.925. Net interest cost increased to Rs.27 crores for 2008-09) on sale of its investments [including profit on sale of shares in Telcon] and dividend from subsidiary companies Rs.678. it has redeemed preference shares of the face value of US$195.2.1.2 million.02) 1.520. due to increase in vehicle volumes.90 crores from Rs.54 crores from Rs.50 crores in 2008-09.16.39 crores in 2008-09.4.25.41 crores of 2008-09.240. Other Income increased to Rs. Other income for 2009-10 includes profit of Rs. The increase is due to variable costs on account of increase in volumes.92) 16.2% to Rs. and product development cost. The borrowings have increased mainly on account of capital expenditure and investment in subsidiary SPV companies related to acquisition/meeting additional funding requirements of Jaguar and Land Rover business. such as sales incentives.34 crores for 2008-09). Basic Earnings Per Share (EPS) increased to Rs.46 crores from Rs.852. 20.801.20 for ‘A’ Ordinary Shares.648.6 The gross fixed assets including Capital Work in Progress increased to Rs. The major additions were Nano project at Sanand. The increase is attributable to capital expenditure incurred by the Company and strategic investments.22. Further.84 crores from Rs.551. The Company continues to focus on measures to improve/ manage employee cost and productivity.60 crores in equity and preference shares of TML Holdings (Pte) Ltd.7% from 75. an increase of Rs. 26 . a wholly owned subsidiary of the Company.013.2. The Company has invested Rs. 2010 as compared to Rs.307.843.1.26 crores in 2008-09.589. Consequent to the redemption.836.968.73 crores from Rs.1. 2009. had accumulated losses on account of finance charges and acquisition related expenses for the Jaguar and Land Rover acquisition.436.70 last year for Ordinary Shares and Rs.96 (7.Sixty-fifth annual report 2009-10 Tata Motors Limited Net Raw Material consumption including processing charges increased by 31.7% to Rs.76 crores in 2008-09.19.71 crores in 2008-09.64 crores as at March 31. mainly due to normal annual increments/promotions and increase in headcount. Ltd.13 crores from Rs. Balance Sheet size (Fixed Assets.88 crores..4% to Rs. there has been an increase in amortization consequent to capitalization of product development cost relating to various new products – Prima. Employee Cost: The employee cost increased by 18.68 crores of 2008-09.54 crores in 2009-10 from Rs.22. TML Holdings (Pte) Ltd. Fixed Assets Gross Fixed Assets (including capital work in progress) Accumulated Depreciation Total 2009-10 23. Investments and Net Current Assets) of the Company increased to Rs. the Company has recognized a loss of Rs.100.2% for 2008-09.1.909.42. Depreciation. The input price increases during the year was off set by cost reduction programme through value engineering and other measures.436.04 crores as at March 31.7% for the last year.12 crores (Rs.1. Material cost as a % of net turnover decreased to 71.8% of PBT as compared to 1. The effective tax rate for 2009-10 is 20.7.336. the Share Capital of the Company stood at Rs. Indigo Manza.90) 14.4 15.42. increased operating margin and increased in other income. 2009.97 crores in 2008-09.425. As at March 31.64 crores in 2008-09.02 crores as at March 31. Nano and other products.212.06 (6. freight etc. plant and facilities for World Truck etc. 2010.33. Tax expenses increased to Rs. Further. 2010 as compared to Rs.12. Singapore.829.

Singapore has redeemed preference shares of Rs. Thus the net cash generated from operations was at Rs. 2009.697. With its wide range of goods and passenger transportation vehicles ranging from 0.19) (684.(5. about 63% of the Indian population is in the working age group (19 – 64 years).9 32.03 crores as compared to Rs.9 413. This enabled the Company to lower the debt by Rs. Current liabilities have increased due to increase in purchase bill discounting and liability towards premium on redemption of non convertible debentures. Ltd.1.6. Population Dividend and Increase in income levels: India has the youngest population in the world.136. Loans and Advances Current Liabilities Provisions Net Current Assets 2009-10 11. Net debt (gross debt reduced by available cash and bank balances and mutual fund investments) stood at Rs. have more than doubled in the last seven years as indicated by Per Capita Income. These were used for payment of bridge loan taken for Jaguar and Land Rover acquisition.14. The cash generated from operations before working capital changes and before considering deployment in the vehicle financing business was Rs.750.56 crores as at March 31.48) (4.4. both in terms of personal transportation needs as well as goods movement. Issue of privately placed Non-Convertible Debentures of Rs.98 crores 4. Over 65% of the planned roads under the North South East West (NSEW) road corridor project have been completed till February 2010. Provisions have increased mainly on account of increase in proposed dividend.962.625.940.540.43) (5. The cash and bank balances have increased by Rs. The Eleventh five year plan has projected a requirement of about Rs.877.70 crores in the previous year. Growing consumer culture: In India.200 crores and US$375 million (Rs.12.25 (8.33 crores as at March 31. Offer to the FCCN holders.763.2. Transport and Highways.486. 5. 2010 as compared to Rs.16. Growing middle income level population and rise in their average income levels all augur well for the automotive industry. There has been a net positive movement of Rs.1.02 crores in the previous year.4. The inventories have increased due to increase in turnover. 41. The income levels in India. With increasing desire for leading urban 27 . Increase in Fixed Deposit portfolio by Rs. 2010 as compared to Rs.556 crores.67) (Rs.94) % 20. It is predicted that the Per Capita Income in India.609. inventory.63 crores as compared to Rs. 2010. in crores) Change 1. in respect of cash flows relating to receivables. the government will spend about Rs. Proliferation of mobile phones and satellited televisions is leading to urbanization of mindset and consumerism in rural people. Debt taken for investments in fixed assets.586.611.95.16) (2.011.95) (1.556. 2009.537. The Company sold part of its investments in Tata Steel Ltd and 20% stake in Telco Construction Equipment Co. Net Current Assets Current Assets.136.165.000 crores for improving rural road conditions/connectivity under the PMGSY programme (Pradhan Mantri Grameen Sadak Yojna).61 crores as compared to negative Rs. would continue to increase with comparatively higher saving rate.16 crores.834.997.295. with a target of building 20 km of road every day.44 crores. reliable and faster vehicles.078. buses and coaches for public transportation and passenger cars and utility vehicles for personal transportation. According to Ministry for Road.1. an option to convert their Notes into Ordinary Shares during a limited period.354.75 Ton load carrier to large haulage tractors (49T) for goods movement. with about 65% under the age of 35.794 crores) Foreign Currency Convertible Notes (FCCN). 2009. Further.1. trade payable and vehicle financing loans.3 Net current assets decreased to Rs.000 billion over future years.67) crores as at March 31.597. The following were the main changes impacting the gross debt:1.73 (6. the demand for a better lifestyle has enhanced consumption levels and rapid growth in several segments like retail chains.(1.66 crores as at March 31. Gross debt (total of secured and unsecured loans) increased to Rs. Opportunities and Risks Opportunities Road development: Continued improvement in road infrastructure in coming years is expected to have a positive effect on automobile sales. 2. The Golden Quadrilateral road project was 99% complete as on March 31.13.61) 2008-09 9. Reduction in debts (FCCN/CARS) mainly on account of positive movement of exchange rates.9 69.91 crores as at March 31. Improvement in road infrastructure at a faster pace will facilitate swifter transportation of goods and passengers.66 crores in 2008-09. Rural connectivity is expected to correspondingly improve which would expand significantly the population/markets/supply sources participating in the overall economic growth.61) crores as at March 31.1.98 (14. the Company is poised to gain significantly with these. This reflects turnaround in the operations mainly due to volumes and profitability. The sundry debtors have increased due to higher year end sale and sale to various state transport undertakings whose payments are received after 60 to 90 days of billing. cellular phones and cable and satellite television.1. and would in turn create a demand for safer. 3. 2010 from Rs.834.97) (2.

the Company has planned to bridge the quality gap between its products and foreign offerings while maintaining its low cost product development/sourcing advantage. Risks Hardening of interest rates and other inflationary trends: Further hardening of consumer interest rates could have an adverse impact on the automotive industry. International Business: India continues to be a cost competitive source for the automotive industry globally. the Company competes with international players which have global brand image. only 11% of cars/UVs sales are today contributed by the rural market. Whilst the Company continues to pursue cost reduction initiatives. we have outstanding foreign currency denominated debt and hence we are sensitive to fluctuations in foreign currency exchange rates. The increase in procurement prices and improved access to finance and institutional credit has brought greater wealth to rural households. primarily the U. the weakening of rupee against the dollar or other major foreign currencies may have an adverse effect on our cost of borrowing and consequently may increase our financing costs.S.80. the fuel price has remained high at about US$85 in 2009-10. The Company’s product programmes encompasses initiatives to improve fuel efficiency of its products and investing in programmes for development of alternative solutions. could adversely impact demand. prices of commodity items like steel. Although we engage in currency hedging as per our policy in order to decrease our foreign exchange exposure. WTO. The Company is also setting up/ exploring manufacturing footprint overseas. The global automotive manufacturers present in India have been expanding their product portfolio and enhancing their production capacities. raw materials and components and also sell our vehicles in various countries. with its wide portfolio is expected to benefit from improvement in lifestyle and higher aspiration levels in passenger cars and potential growth in freight movement. safety. which could have a significant adverse impact on our results of operations. The Kirit Parikh committee recommendations that the retail prices of petrol and diesel to be market determined and that an additional excise duty of Rs. Income remittances from migrant rural populations and increases in non-farm activities such as trading and agro-processing are boosting non-farm income. noise. US Dollar and Euro. The Company has planned affordable transport solutions and distribution channels to leverage the opportunities presented by this market. We import capital equipment. Policy measures such as the waiver of agricultural loans and the National Rural Employment Guarantee Scheme (NREGS). Government Regulations: Stringent emission norms and safety regulations could bring new complexities and cost increases for automotive industry. Moreover. both for vehicles and components. particularly with the new and contemporary product offerings in commercial vehicles and passenger cars. have helped to reduce rural under-employment and raised rural income levels. impacting the Company’s business. India’s manufacturing base continues to benefit from these scale economies coupled with technology/quality improvements. with less than 50% of the rural income being contributed by farm income. The Company has opportunities to increase its exports significantly. non-ferrous.000 per car to be levied on diesel cars. In the international markets. Consumerism is also expected to lead to an increase in car penetration from the current levels of 8 per thousand towards the 500+ levels witnessed in the developed countries. many of which have stricter norms of regulations related to emission. and fluctuations of Indian Rupee against Pound. To counter the threat of growing global competition. rural spending is now less dependent on farm income. Increase in inflation could also have a negative impact on automobile sales in the domestic market. Higher fuel prices will force the consumers to think of alternative transportation solutions or defer purchases. and increased government spending in rural areas. if implemented. Global Competition: India continues to be an attractive destination for the global automotive players. It is estimated that compared with 48% of motorcycles sales in the rural areas. These transactions are denominated in foreign currencies. which guarantees 100 days of employment to one member of every rural household. which will lead to huge demand for passenger carriers and buses. precious metals. Rural Market Growth: As per the recent report by Accenture Consulting. dollar and Euro. Input Costs: With many economies coming out of recession. more competitive for local manufacturers.Sixty-fifth annual report 2009-10 Tata Motors Limited lifestyle. Fuel Prices: As compared to the volatility in international oil prices in 2008-09 (from a high of US$145 per barrel in June 2008 to a low of US$30 per barrel). which indicates a potential growth opportunity in this market. In India the fuel prices are subsidized by the Government and going forward may be decontrolled. 28 . These factors may impact demand of the Company’s products in international markets. Japanese Yen and Euro. larger financial capability and multiple product platforms. technology etc. rubber and petroleum products are expected to rise significantly. We have experienced and expect to continue to experience foreign exchange losses and gains on obligations denominated in foreign currencies in respect of our borrowings and foreign currency assets and liabilities due to currency fluctuations. increase in price of input materials could severely impact the Company’s profitability to the extent that the same are not absorbed by the market through price increases and/or could have a negative impact on the demand in the domesticmarket. which would combine these advantages with local operations and sourcing in these markets. These risks primarily relate to fluctuations of Pound to US Dollar. Exchange Rates: Our operations are subject to risk arising from fluctuations in exchange rates with reference to countries in which we operate. per capita movement between villages and urban centres is expected to witness an explosive growth in the coming year. The Company. Free Trade Agreements and other similar policies could make the market.

there is expected to be an increase in the commodity prices. upgrades and capacity enhancement programme. Jaguar Land Rover will continue to focus on cost reductions to improve its cost base and competitive positioning in the market. The Indian economy is expected to grow by 8. Timely introduction of new products. A comprehensive information security policy and continuous upgrades to IT system. Other structural factors being favourable. regulatory compliance. connect its different locations. Russia. A well established multidisciplinary Internal Audit team. The Company has continued its efforts to align all its processes and controls with global best practices in these areas as well. regularly reviews the audit plans. comprising independent directors. Anti-fraud programme. if any. compliance with Accounting Standards as well as reasons for changes in accounting policies and practices. Interest rates and liquidity may be affected as a result of inflationary pressures. their acceptance in the market place and managing the complexity of operations across various manufacturing locations. An on-going program for reinforcement of the Tata Code of Conduct. It will also focus on increasing its presence in the emerging markets such as China and Middle East along with launching new products and variants and new technology initiatives for emission level reductions. would be the key to sustain competitiveness. and Middle East are expected to grow. new products and variants. Well-defined processes for formulating and reviewing annual and long term business plans. Supplier Relations Management and Customer Relations Management. conflict of interests review and reporting of concerns. Though the Company employs sophisticated techniques and processes to forecast the demand of new products yet the same is subject to margin of error. some of which have already been unveiled at the Delhi Auto Expo this year. On the above background. this augurs well for the Indian automotive sector. compliances with regulations and for ensuring reliability of financial reporting. however economies across the world (with a few exceptions) have signs of revival. The Code covers integrity of financial reporting. the commercial vehicle industry is expected to do well in the next year. significant audit findings. The Board takes responsibility for the total process of risk management in the organisation. Preparation and monitoring of annual budgets for all operating and service functions. The Company will continue to introduce to the market. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls. Through an Enterprise Risk Management programme. in turn increasing the input costs. necessitates the Company to continuously invest in new products. monitoring of operations. In 2010-11. market reach and penetration and the ‘Tata’ brand. financial and other business risk areas. It has documented procedures covering all financial and operating functions. The competition in both commercial and passenger vehicle segments is expected to intensify in the next year. each Business Unit addresses opportunities and the attendant risks through an institutionalized approach that is aligned to the Company’s 29 . protecting assets from unauthorized use or losses. The Company will also aggressively pursue opportunities in the International markets as they recover from the downturn. Internal Control Systems and their adequacy The Company has in place adequate system of internal control. Documenting major business processes and testing thereof including financial closing. The Audit Committee reviews reports covering operational. in order to be close to its customers. while the UK. Commercial vehicle industry continues to be highly dependent on the developments in infrastructure and manufacturing activity in the country. global growth is expected to be more than 4% as compared in 2009-10. State-of-the-art ERP. adequacy of internal controls. With increase in the Government spending on infrastructure and increase in the industrial production. which reviews and reports to management and the Audit Committee about the compliance with internal controls and the efficiency and effectiveness of operations and the key process risks. These will offer superior value to the customers and improve the Company’s market position.8% according to the IMF World Economic Outlook. computer controls and entity level controls as part of compliance with Sarbanes-Oxley Act. Aggressive cost reduction will be accentuated to offset the increase in input costs.New Project Execution: Intensifying competition. Audit Committee of the Board of Directors. Bi-monthly meeting of the management committee at apex level to review operations and plans in key business areas. With recovery in the global markets. Some significant features of the internal control systems are: Corporate policies on accounting and major processes. reducing product life cycles and breadth of the Company’s product portfolio. All employees of the Company are regularly exposed to communications under this program. ethical conduct. Key markets for Jaguar Land Rover such as China. which is functional since August 1988. the Company will continue to focus on retaining its advantage of rich product portfolio. Outlook In 2009-10. dealers and vendors for efficient and seamless information exchange. the first half was slightly weak. USA is expected to recover moderately.

3 per cent in the Range Rover Sport and 9. but in the later half of the year improved with growth witnessed in each successive quarter. This is also facilitated by internal audit.310. This is an important new model which replaces the previous generation XJ model. Retail growth in China continued to be strong across all products with total retail volumes of 17.831 units. Results of the risk assessment and residual risks are presented to the senior management.418 units for Jaguar and 146. The new vehicle will début in 2010-11 and join the Range Rover line-up in 2011-12 and will be the smallest. together with the highest standards of personal luxury and specification. The consolidated operations are significantly dominated by Jaguar Land Rover (JLR) and the Company (TML). automotive sector in the UK. The vehicle received significant media acclaim ahead of customer deliveries commencing in 2010-11. these schemes had minimal benefit for premium vehicle segment in which it operates. Following is the brief overview of the performance of the major subsidiaries: Jaguar and Land Rover Business: During the year. The LR-TDV6 3.0 diesel engines introduced in the 2010 model year (MY) were designed to deliver significant improvements in performance.0 supercharged petrol and LR-TDV6 3. Fuel consumption in the Range Rover LR-V8 5. most of these major markets started witnessing growth from third quarter of the year. counteracted by the demand driven by the introduction of the new 10MY product launches. experienced negative economic growth in the early part of the financial year.4 per cent. Retail volumes in the UK for the period totalled 57.Sixty-fifth annual report 2009-10 Tata Motors Limited objectives. however the overall trend showed an improvement. Wholesale volumes for the full year ending March 2010 were 47.0 litre petrol engine for the models XF. lightest. The business risks is managed through cross functional involvement and intense communication across businesses.056 while retail volumes in North America totalled 41. The new Jaguar XJ was unveiled in London in July 2009 and had its public début at the Frankfurt International Motor show in September 2009. Retails in Russia totalled 8. The prior reporting period only covered ten months and therefore not directly comparable. along with an acclaimed new 3. external environment for JLR remained unstable with depressed demand in most of the key markets. Market for premium cars remained weak especially in the first half of the financial year.3 per cent and CO2 emissions reduced by 7. During 2009 Jaguar launched 10MY products including the introduction of a new naturally aspirated and supercharged 5. Europe and the USA. contribution margin improvement and positive cash flow. Sales of the Jaguar XF were up 30% in quarter 4 versus the same period last year. During the year. significantly lower than previous periods reflecting the difficult local market conditions. However. volatility in exchange rates and rising input material prices. Limited availability of the X-Type (production ceased in December 2009) and the outgoing XJ (production ceased in May 2009) have suppressed sales.6 per cent respectively in Discovery 4/LR4 (on EU combined cycle).9 per cent and CO2 emissions by 8. Land Rover during the year confirmed the production plan of its exciting LRX concept car.0 litre diesel engine in the XF model giving significantly improved performance and fuel economy. XK and XKR and the all new XFR. The permanent employee’s strength of the Company as on March. The financial results of JLR continued to show improvement throughout the year and resulted in JLR reporting a profit before tax of £32 million for the year. 30 . fuel economy and emissions.720. In April 2010. enhanced power trains with all of Jaguar’s new ultra-efficient Gen III 5. most efficient Range Rover ever.7 per cent and 9. The key markets. 2010 MY Range Rover was available for sale from July 2009 with 2010 MY Range Rover Sport and Discovery 4/LR4 being available from September 2009.0 supercharged has been reduced by 7.564 units for Land Rover.0 litre petrol and 3. in which JLR operates.982 units. Among the product innovations is its instrument cluster with a 12" thin film transistor (TFT) screen. In addition to this. The new LR-V8 5.0 diesel reduces fuel consumption by 8. however the overall trend showed an improvement. However. Wholesale volumes for 2009-10 were 193. The consolidated financial information for 200809 includes JLR for 10 months as compared to 12 months in 2009-10. The prior reporting period only covered ten months and therefore not directly comparable. the last quarter results represented second successive quarter of positive profit after tax. The new model features the next generation of Jaguar’s aerospace-inspired aluminium body architecture. a choice of standard or long wheelbase models.0 litre diesel engines available. Jaguar’s 10MY product actions continued to deliver positive sales performance. low confidence level in financial markets. 31 2010 was 24. benefitted from a variety of vehicle scrappage schemes.004. Comments on the performance of major subsidiaries The consolidated financial results for 2009-10 include the results of Tata Motors and its subsidiaries. Material Developments in Human Resources/Industrial Relations A cordial industrial relations environment prevailed at all the manufacturing units of the Company during the year. the Company entered into a landmark three year wage settlement with its Union at Pune through amicable process of negotiations.

67. the disbursals of TMFL also increased substantially. Tata Technologies Ltd (TTL): In 2009-10 the Profit before Tax increased by 35. During the year. TDCV bagged an export order of 2.562 units in 2009-10 compared to 4. As the economy recovered during the first half of the year.4% for 2008-09.273 units in 2009-10 with a market share of 23. Tata Daewoo Commercial Vehicles (TDCV): Financial year 2009-10 was a very challenging year for TDCV.500 units have been shipped during 2009-10. a fall of 1. TDCV faced severe slowdown in its main export markets.8% for Commercial Vehicles and Passenger car segment combined. TDCV paved the way to strengthen its presence in the domestic market with the successful launch of its new range of premium trucks “PRIMA” The financial instability of the company’s sole distributor in domestic market has brought new challenges . With a spurt in the volumes of Tata Motors. a decline of 14. JLR’s official entry to the fast growing Indian car market was marked by the opening of a flagship showroom facility in Mumbai. The increase is attributable to growth in revenue both at Tata Motors and Jaguar Land Rover business on the background of robust growth in automotoive volumes.07 crores as compared to Rs. JLR continued to work with Ford to separate its IT infrastructure and support systems that is expected to be completed by the end of first quarter of FY2011. accounting for 96. Majority of exports were made to countries like Iraq and Algeria. These factors had an adverse impact on its profitability. This was on account of: Cost saving plan containing impact of recession on earnings and margin. including disbursements.8% for fiscal 2010 and 2009 respectively. Many facets of TMFL’s operations.7% compared to 2.877.835. These countries are largely dependent on oil revenues and with oil prices at relatively lower level. despite very aggressive prices offered by some private and state owned banks.6%. For Fiscal 2010.615. including as a percentage of turnover net of excise duty. Comments on Financial Performance on a Consolidated basis The sales net of excise duty on a consolidated basis.92. management of non-performing assets as well as collection efficiencies have shown significant improvements. negotiated renewal of a US$200m loan for another year and repaid short term borrowing totaling £220m. JLR also completed guarantee arrangements to allow the drawdown of a £338m EIB loan which will further advance Jaguar Land Rover’s research and development programmes focused on technologies that will reduce CO2 emissions from its vehicles. The Gulf Cooperation Council block. Improvement in off-shore customers. has set the organization on a robust platform.678 vehicles and market share of 28. revenue from automotive operations before inter segment eliminations was Rs. Accelerating diversification in Global services and PLM Solutions. have recorded a growth of 30.016 as compared to 108. JLR completed the process of separating operations in markets where it previously operated as part of Ford legal entity.88 crores. which represents 136.080 vehicles in 2009-10 with a market share of 28. In the medium duty truck market TDCV sold 2. JLR will continue to grow its presence in the Indian market by opening additional dealerships across India. The Company exported 3. (A reference may be made to review of performance of TML and Jaguar Land Rover business discussed above). In November 2009. In heavy commercial vehicle.9% and 95. out of which 1.8% as compared to 2008-09. This resulted in increase in its Profit after Tax by Rs.1% as compared to 2.519. TMFL initiated several measures to improve the management of the NPA’s and also improve margins and operating efficiencies. TDCV sold 3.25 crores.07 crores for fiscal 2009.5% in 2009-10 to Rs. coupled with an appreciating currency.570 units from the IRAQ Ministry of Defense.6% increase as compared to 2008-09. they cancelled and/or indefinitely postponed their order for our commercial vehicles. of our total revenues. However. Tata Motors Finance Ltd (TMFL): The year under review has been a year of consolidation for TMFL resulting in an improved operating performance. 2010 and 2009. and opportunity for the company to set-up alternate marketing and distribution channels.9% in total market share. 2009. During the year TMFL achieved a market share of 24.9%. The following table set forth selected consolidated financial information for the Company. a strong focus on controlling overall costs. coupled with a focus on improving quality of fresh acquisitions and micro-management of collections.89. TMFL has shown improvements in disbursements as well as net interest margins. an increase of 36% in 2009-10.On June 1.184 units in 2008-09. for the year ended March 31. 31 . Improving operational efficiency with project profitability and shared service.164.138 units in 2008-09 and a market share of 25. The number of contracts booked in the FY 09-10 was 148. Automotive operations is our most significant segment. which is the major export market for TDCV had been one of the worst affected during the global financial crisis. agreed a syndication of an inventory financing facility to increase the available funding from £85m to £116m.

2 4.6% to 18.38 11.33 (g) Rates and taxes 181. impact of wage revisions and on account of increased volumes.55 11. in crores) Change Expenses for manufacture.68) 145.7 1.0 68.28 (i) Publicity 2.130.6 (6.9 11.0) 90.3 3. administration and selling 17.41 (1.3 24.584.192.253.8 (Rs.71 95.4 9. transportation.45 686.3% to 9. The reduction is mainly on account of improved product mix.64 16. performance payments.58 crores of 2008-09.5 10.99 (1.371.22 559.284.584.92 145.50 (d) Repairs to plant.62.33 9.64 793.5 (3. Manufacturing and Other Expenses 2009-10 2008-09 (Rs.34 207. machinery.5) 96.38 2009-10 100.17.5% in the current year.15 (f) Rent 106.04 48. Employee Cost While the employee cost has increased on an absolute basis by Rs.5 18. primarily due to actuarial assumptions and volumes.13 268.1 4.978. etc. the group has been in a position to contain the cost 32 .1.63 Total 17.44 17.058.14) Manufacturing and other expenses decreased marginally to Rs.67) 62.441.49 17. As a % to net revenue (excluding expenditure transferred to capital and other accounts) it has come down from 24.58 (70.30 3.633.538.52 340.28 crores of 2008-09. The increase in Jaguar Land Rover business mainly relates to higher pension costs.8% in the current year.974. as a % to net revenue it has come down from 10.374.63 152.7 2.441.71 (c) Repairs to buildings 57. in crores) 2008-09 40.371.31 crores from Rs.2 4.38 6. As could be seen from the above table that despite increase in volumes. Interest and Tax Depreciation (including product development expenditure) Interest and Discounting Charges (Net) Exceptional items Profit / (loss) before Tax Material Cost (including change in stock and processing charges) Consumption of raw materials and components Purchase of product for sale Processing Charges Change in Stock-in-trade and Work-in-progress Material (including change in stock and processing charges) 2009-10 54.26 (215.5% to 67.8 (5.4 0.Sixty-fifth annual report 2009-10 Tata Motors Limited Percentage of Turnover Turnover net of excise duty Expenditure: Material Cost (including change in stock and processing charges) Employee Cost Manufacturing and other expenses Expenditure transferred to capital and other accounts Total Expenditure Other income Profit before Exceptional Item.4% of net sales.7 0. 278.73 54. spare parts and tools consumed 1.95 (58. port charges.66 (j) Incentive/Commission to dealers 595.323.105.05 45.9 1.54 8. The material cost has come down from 68.4% to Rs. Depreciation.38 crores from Rs. 2.23 (k) Works operation and other expenses 9.49 29.57 388.42 10.14 (h) Insurance 161.44 1.050.995. etc.454.57 293.28 Net Raw Material consumption including processing charges increased by 28. due to increase in vehicle volumes.42 (b) Freight.500.374.0) (Rs.148. in crores) 2008-09 100.99 765.52 878.0 67.35 crores.99) Expenses for manufacture.48.80 (e) Power and fuel 689.18 2.17. administration and selling (a) Stores. better price realization and continuous cost reduction initiatives.77) Excise Duty on change in Stock-in-trade 86.0 2. The increase in employee cost at TML and other subsidiaries (excluding Jaguar Land Rover business) mainly relates to increase cost on account of normal yearly increases.

057.407. Expenditure transferred to capital and other accounts represents amounts allocated out of employee cost and other expenses for the amounts capitalized mainly for product development costs.335.126.52 191. Tax expense has increased to Rs.3. The publicity expenses have increased by Rs.239.2. Consolidated Profit for the year of the Group increased to Rs.82 480.31) (239.70) 1.12 crores of Jaguar and Land Rover. which necessitated provisions in the last year.75 crores in 2008-09. 10. The other income in the current year includes profit on sale of controlling stake in Telcon Rs.1. This represents a remarkable recovery in the automotive volumes and improvement in the performance of Jaguar Land Rover business.66 crores.33 crores from Rs.129.21 (40.29 (Rs.6% in 2009-10.07 Others consist of (a) employee separation cost of Rs.1.25 crores in 2008-09.64 crores in 2009-10 from a Loss before Tax of Rs.25 crores in 2008-09. Prima. The tax expense is higher during the year due to significant increase in proportion of taxable profits in TML as also on account of provision for tax made at subsidiary companies of Jaguar Land Rover which have been consolidated on a line by line basis.6% to Rs. 5.30 (332.71 crores from Rs. The increase reflects significant turnaround during the year in the operations of the Company and Jaguar Land Rover business. 191.930.83 crores in 2008-09.347.62 crores in 2009-10 as compared to Rs. 2.52 crores in 2008-09. The profit (net) on account of sale of other investments was Rs.36 crores represent impact on account of increased capitalization at TML including the effect of assets installed in the earlier years for which full effect has come in the current year. (Please refer to details of Gross debt) Exceptional Items 2009-10 Exchange (Gain) / Loss (Net) on revaluation of foreign currency borrowings.71 (Rs.498.1. 1.505. Exceptional items and Tax has increased from Rs.793. The incentives/ commission relates to Tata Motor’s business.638.651. Nano and other products.21 crores represents increase in level of acceptances consequent to higher volumes in the current year.09 (292.385.90 crores in 2008-09.76) 344.90 143.12 crores from Rs. and (c) provision for a product liability case.96 crores in 2008-09.2. (b) unamortised debt issue cost of Rs.75 crores in 2008-09 and increased depreciation of tooling’s at Jaguar Land Rover business. mainly towards new product introductions (Nano.34 671. in crores) 2008-09 Change 1. New Jaguar XJ). There has been a significant drop in the resale value of the cars in those markets in 2008-09. Deposits and loans given Others (84.92 crores. 4.61) 2.592.32) (225.6% of net revenue.89 crores.16 crores for 2008-09.2.47) 344.75 crores in 2009-10 from Rs. The works operation and other expenses during the current year have come down to 9.07 2008-09 339.380.239. there has been an increase in amortization of product development cost consequent to commencement of commercial production of new products mainly Prima.571.930. Other Income increased to Rs. 308. Depreciation and Amortization (including product development expenditure) for 2009-10 increased by 53. in crores) Change (423.105.854. where the increase is mainly volume driven. Depreciation. The tax expense as a % to PBT was 28. spare parts and tools consumed is due to higher level of production.81 crores. Further.718.693. The increase in stores.1.81 Net interest cost increased by 16% to Rs. Consolidated Profit before Tax (PBT) has increased to Rs.06 crores from a Loss for the year of Rs. The major factor of decrease has been significant reduction in provision towards residual risk on vehicles sold by Jaguar Land Rover business.46 crores in 2008-09 to Rs. The increase is also attributable to product development written off during the year of Rs. 33 .09 308.340.2.522.at all levels. these provisions have been written back and there have been significantly lower provisions in the current year.04 crores written off on prepayment of bridge loan for acquisition of Jaguar Land Rover business.20 crores as compared to Rs. 4.005. Net interest cost 2009-10 Interest and discounting charges Interest expenses Discounting Charges Interest capitalized Interest received Interest expenses 2.01) 14. representing a positive swing of Rs. mainly due to higher profit on sale of investments.982. The increase in depreciation and amortization expenses of Rs.28 crores in 2009-10.191. Profit before Interest.798.995.2. During the year on account of improvement in the resale prices.50 crores from Rs. Out of the total increase of Rs. The TML group has been successful in containing the costs through borrowings at lower rates and by substituting part of the borrowings through issue of equity.4. Expenditure transferred to capital and other accounts decreased marginally to Rs.9% from 14. Rs.

2010 as compared to Rs.64 (34.85 69.72 crores represents decrease due to sale of investments of Tata Steel Ltd.97 9.140.521. which have necessitated due to increase in volumes and also increase in sale to government customers. Loans & Advances Current Liabilities Provisions Net Current Assets 2009-10 42.1.1) 43. There was decrease in Net fixed assets of Rs. Investments and net current assets) of the Group increased to Rs.749. The increase is mainly in TML (refer discussion of standalone performance).745. The Company is exploring possibilities of deploying the cash towards repayment of borrowings and/or parking of the surplus cash to generate income.32 crores.35. Net debt (gross debt reduced by available cash and bank balances and mutual fund investments) stood at Rs.2.565.33 crores as at March 31.47 3. 2009.38. The movement (net) of Rs.219.85 crores in 2009-10 was due to increase in trade and other payables by Rs.326.17) (8.2.79 crores as at March 31.02) 496.38 3.843. expectations may be “forwardlooking statements” within the meaning of applicable securities laws and regulations.980. (b) Increase in inventories amounting to Rs. After considering the impact of working capital changes and inflows on account of securitization of financing loan portfolio (net of deployment). Gross debt (total of secured and unsecured loans) increased marginally to Rs.079.52 crores as at March 31. 2010 from Rs.4.83 crores in the previous year. in crores) 2008-09 Change 32. Fixed Assets (Rs.52 33.1 (6.7. CAUTIONARY STATEMENT Statements in the Management Discussion and Analysis describing the Company’s objectives.47 crores. which represents increase in vehicle financing activity to support the demand. Bridge Loan taken for Jaguar and Land Rover business was paid during 2009-10.53 crores on account of increase in manufacturing activity and due to higher sales volume.33 crores as at March 31. The reduction represents surplus cash and bank balances and increase in mutual fund investments as explained above.42.67 (23.506.47 5.79 crores.81 crores as at March 31. 2010 as compared to Rs.4. The cash generated from operations before working capital changes and before considering deployment in the vehicle financing business was Rs.621.98 crores due to surplus cash at Jaguar Land Rover business.91 crores due to sale of controlling stake in Telcon.00 7. representing level of operations.144.1 42.58 crores in the previous year. 2009. improved cash generation from operations and sale of certain investments.808.05 1.63 crores due to increase in sales volumes. net increase in receivable on account of Minimum Alternative Tax credit entitlement in future years and increase in excise duty/VAT and other dues from the government. Investments increased to Rs. Important factors that could make a difference to the Company’s operations include. estimates.9.505.529.34.192.077.13 crores. and (c) Loans and advances increased by Rs.257.10 crores as at March 31. and increase on account of (a) reporting of investments in Telcon as an associate consequent to sale of controlling stake and (b) investments in Mutual Funds of Rs.33 35.52 565. 2010 as compared to Rs.8.93 crores as compared to Rs.02 % 30.3.506.45.33) (7. in crores) 2009-10 2008-09 Change % Gross Fixed assets (including Capital Work-in-Progress) 72.917.35.413.464.342.16) (10.788. (b) Cash and bank balances increased by Rs. Current liabilities have increased on account of increase in sundry creditors and acceptances and liability towards premium on redemption of Non-Convertible Debentures created during 2009-10 of Rs.244.097.4 Net Fixed assets 38.955.600.267.81 (Rs.170.Sixty-fifth annual report 2009-10 Tata Motors Limited Consolidated Balance Sheet size (Fixed Assets. tax laws and other statutes and incidental factors. and (c) Increase in vehicle/loans and hire purchase receivables by Rs. Actual results could differ materially from those expressed or implied. The increase in creditors/acceptances relate to volumes in the current year.36 crores as at March 31.269. 2009.43 crores and sundry debtors by Rs. which is now accounted as an associate.17 crores as at March 31. more particularly in the last quarter.29 crores as compared to Rs.33 2.79 243. 2010 as compared to Rs.383.27.49 crores as at March 31.917. 2009.50) 808.988.2.40 crores as at March 31.2.12 crores as at March 31.7 Accumulated Depreciation 34. The increase in current assets represents – (a) increase in inventory by Rs.1. among others.773.685.361.32. The gross fixed assets have increased by Rs.11 crores due to increase in manufacturing activity which was partially offset by (a) Increase in trade and other receivables amounting Rs.1. 2010 from Rs. Provisions have decreased due to decrease in Provision for warranty and residual risk at Jaguar Land Rover business. changes in the Government regulations.776.973.643.002.8 Net Fixed Assets including Capital Work-in-Progress increased to Rs.2.961.10 crores.85 crores as at March 31.05 crores.733. The cash increase on account of change in operating assets and liabilities of Rs. 2009. 2009. through funds raised. The increase is attributable to capital expenditure for expansion and setup of new facilities and product development cost incurred by the Group. projections.733. Net Current Assets Current Assets.396. 34 . the net cash generated from operations was at Rs.919. economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates.0 Net Current Assets increased to Rs.

Audit Committee and Investors' Grievance Committee) across all the companies in which he is a Director. February 26. July 27. ethics and business principles and serves as a guide to the Company. During the year under review. Risk management and internal control functions have been geared up to meet the progressive governance standards. integrity and ethical behaviour. The maximum time-gap between any two consecutive meetings did not exceed four months. number of directorships (including Tata Motors). Through the Governance mechanism in the Company. January 29. The Board reviews the declaration made by the Managing Directors regarding compliance with all applicable laws on a quarterly basis as also steps taken to remediate instances of non compliance. The required information as enumerated in Annexure IA to Clause 49 of the Listing Agreement is made available to the Board of Directors for discussions and consideration at Board Meetings. 2010. honesty. 2010. The appointment of the Managing Directors. the Balanced Scorecard methodology for tracking progress on long term strategic objectives and the Tata Code of Conduct which articulates the values. August 31. The Corporate Governance philosophy has been further strengthened with the implementation. April 1. None of the Directors of the Company is related to each other. October 1. CEO & Managing Director and the Chief Financial Officer (CFO) have certified to the Board in accordance with Clause 49 V of the Listing Agreement pertaining to CEO and CFO certification for the Financial Year ended March 31. 2010. October 26. eleven Board Meetings were held on April 27. 2010 and March 30. May 29.e. All the Directors have made necessary disclosures regarding Committee positions held by them in other companies and do not hold the office of Director in more than fifteen public companies.Report on Corporate Governance COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE As part of the Tata group. Mr Carl-Peter Forster was appointed as Tata Motors Group CEO & Managing Director of the Company w. a few years ago. All Non Executive Directors excluding the 'Steel' Director (Tata Steel representative). 2009. November 27. 2009. The Company’s Depository Programme is listed on the New York Stock Exchange and the Company also complies with US regulations as applicable to Foreign Private Issuers (non-US listed companies) which cast upon the Board of Directors and the Audit Committee. onerous responsibilities to improve the Company’s operating efficiencies. 2009. 2010. 2009. None of the Directors on the Company's Board is a Member of more than ten Committees and Chairman of more than five Committees (Committees being. 2009. supervises and controls the performance of the Company.f. many of which were in place even before they were mandated by adopting highest standards of professionalism. June 26. attendance at Board Meetings held during the Financial Year under review and at the last Annual General Meeting. memberships/chairmanships of the Board and Committees of public companies and their shareholding as on March 31. by the Company of the Tata Business Excellence Model as a means to drive excellence.33%) are Non-Executive Directors. All the Independent Directors have confirmed that they meet the 'independence' criteria as mentioned under Clause 49 of the Listing Agreement. The Board currently comprises of twelve Directors out of which ten Directors (83. 2009. are liable to retire by rotation. 2010 in the Company are as follows: 35 . 2009. its directors and employees and an appropriate mechanism to report any concern pertaining to non-adherence to the said Code and addressing the same is also in place. THE BOARD OF DIRECTORS The Board of Directors alongwith its Committees provide leadership and guidance to the Company's management and directs. As a global organisation the Corporate Governance practices followed by the Company and its subsidiaries are compatible with international standards and best practices. 2009. The Company has a Non-Executive Chairman and the six Independent Directors comprise of half of the total strength of the Board. The composition of the Board. The Company is in full compliance with the requirements of Corporate Governance under Clause 49 of the Listing Agreement with the Indian Stock Exchanges (“the Listing Agreement”). ethical and transparent governance practices. the Board alongwith its Committees undertake its fiduciary responsibilities to all its stakeholders by ensuring transparency fairplay and independence in its decision making. including the tenure and terms of remuneration are also approved by the members. the Company’s philosophy on Corporate Governance is founded upon a rich legacy of fair.

The Committees operate as empowered agents of the Board as per their Charter/ terms of reference.Sixty-fifth annual report 2009-10 Tata Motors Limited Name of the Director Ratan N Tata Ravi Kant (3) N A Soonawala(4) J J Irani (5) R Gopalakrishnan N N Wadia S M Palia R A Mashelkar S Bhargava N Munjee V K Jairath Carl -Peter Forster(6) P M Telang(7) Category Non-Executive Chairman Non-Executive.e. 36 . foreign companies and associations (2) includes only Audit and Investors’ Grievance Committees (3) appointed as the non executive Vice . listing requirements and US regulations applicable to the Company and is reviewed from time to time.f. 2010 (7) appointed as the Managing Director – India Operations w.f. 2010. responsibility and reporting functions in accordance with the Companies Act 1956.India Operations No. Major accounting entries involving estimates based on exercise of judgment by Management. 2009 On May 27. the Board has constituted a set of Committees with specific terms of reference/scope. June 1. Reviewing the quarterly financial statements before submission to the Board. Compliance with listing and other legal requirements concerning financial statements.e. June 2. THE COMMITTEES OF THE BOARD To focus effectively on the issues and ensure expedient resolution of diverse matters. Independent Non-Executive.e. 2010 Code of Conduct: Whilst the Tata Code of Conduct is applicable to all Whole-time Directors and employees of the Company. duly signed by the CEO and Managing Director is annexed hereto. Analysis of the effects of alternative GAAP methods on the financial statements. Targets set by them as agreed with the management are reviewed periodically and mid-course corrections are also carried out. the full Charter is available on the Company’s website. Independent Non-Executive. Whilst. Independent Non-Executive. the Board of Directors appointed Mr Ranendra Sen as Non-Executive Director w.f. the Board has also adopted a Code of Conduct for Non-Executive Directors. 2010 (5) Tata Steel Representative (6) appointed as Tata Motors Group CEO & Managing Director w. given below is a gist of the responsibilities of the Audit Committee: a. The Board of Directors and the Committees also take decisions by the circular resolutions which are noted at the next meeting.f. Independent Group CEO & Managing Director Managing Director . AUDIT COMMITTEE The Audit Committee functions according to its Charter that defines its composition. June 2.e.f.e. Independent Non-Executive. Vice Chairman Non-Executive Non-Executive Non-Executive Non-Executive. A Declaration to this effect. of Board Meetings attended in the year 11 11 10 11 10 7 9 8 10 8 9 0 11 Attendance at the last AGM Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Directorships(1) Shareholding Committee positions(2) Chairman Member Chairman Member Ordinary ‘A’ Ordinary Shares Shares 10 5 1 3 2 3 1 3 1 2 1 3 4 7 7 4 7 8 9 14 2 7 3 3 4 4 1 1 2 5 4 3 5 4 187346 4815 3750 300 50 3180 21836 1300 500 (1) excludes Directorships in private companies. the Committees and the senior management functions is illustrated alongside. March 31. April 1. authority. All the Board members and senior management of the Company as on March 31. 2010 have affirmed compliance with their respective Codes of Conduct. 2009 (4) ceased to be a Director w. The minutes of the meetings of all Committees of the Board are placed before the Board for discussions/ noting. Audit Qualifications and significant adjustments arising out of audit. both of which are available on the Company’s web-site. The relationship between the Board. Independent Non-Executive. focusing primarily on: Compliance with accounting standards and changes in accounting policies and practices.Chairman w.

the statement of uses/application of funds raised through an issue (public issue. It also reviewed the internal control system in subsidiary companies. the Chief Financial Officer. 2009. Reviewing the adequacy of internal audit function. August 12. 2009. the internal auditors and the independent Statutory Auditor in carrying out its oversight responsibilities. Overseeing the Company’s financial reporting process and the disclosure of its financial information. August 24. The Chairman of the Audit Committee also attended the last Annual General Meeting of the Company. The Committee through self-assessment annually evaluates its performance. qualifications and independence. 2009 which was chaired by Mr N Munjee via teleconference. adequacy of internal control systems and recommending improvements to the management. Disclosures made under the CEO and CFO certification and related party transactions to the Board and Shareholders. Discussing with the internal auditor and senior management significant internal audit findings and follow-up thereon. Reviewing the findings of any internal investigation by the internal auditor into matters involving suspected fraud or irregularity or a failure of internal control systems of a material nature and report the matter to the Board. The Chairman of the Audit Committee briefs the Board members about the significant discussions at Audit Committee meetings. The composition of the Audit Committee and attendance at its meetings is as follows: Composition Meetings attended N Munjee (Chairman) 13 * S M Palia 14 R A Mashelkar 11 * Does not include Audit Committee Meeting held on August 28. Reviewing the financial statements and investments made by subsidiary companies. rights issue. experience and background etc of the candidate. n. 2009. financial and compliance areas. if required. 2010. Reviewing the Company’s financial and risk management policies. k. 2010 and February 24. applicable laws and regulations as well as for objectively reviewing and evaluating the adequacy. Reviewing the functioning of the Whistle-Blower and the legal compliance mechanism. Reviewing. if any. results of Operations and the Directors’ Responsibility Statement. During the period under review. preferential issue. the statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue. The Internal Audit function headed by the Chief Internal Auditor reports to the Audit Committee to ensure its independence. 2009. December 2. 37 . The Business and Operation Heads are invited to the meetings. etc. Management personnel presented their risk mitigation plan to the Committee. CEO and Managing Director. The Committee relies on the expertise and knowledge of management. The Company Secretary acts as the Secretary of the Audit Committee. l. 2009. m. sufficient and credible. Reviewing with the management. 2009. June 23. as well as conduct post-audit discussions to ascertain any area of concern. b. Discussing with the external auditor before the audit commences. shareholders (in case of non-payment of declared dividend) and creditors. October 23. c. Approving the appointment of CFO after assessing the qualification. fourteen Audit Committee meetings were held on May 4. 2009. d. 2009. It also uses external expertise. 2009. status on compliance of its obligations under the Charter and confirmed that it fulfilled its duties and responsibilities. removal. Look into the reasons for any substantial defaults in payment to the depositors. external auditor and internal auditor. g. the Chief Internal Auditor. coverage and frequency of internal audit. to ensure that the financial statements are correct. Reviewing the effectiveness of the system for monitoring compliance with laws and regulations. and making appropriate recommendations to the Board to take up steps in this matter. evaluating auditors’ performance. whichever is higher. presentation and integrity of the Company’s financial statements including consolidated statements. The management is also responsible for internal control over financial reporting and all procedures are designed to ensure compliance with accounting standards. h. the Committee reviewed key audit findings covering operational. The Committee comprises of three Independent Directors. The management is responsible for the preparation. 2009. performance and terms of remuneration of the chief internal auditor. July 24. the nature and scope of audit. January 28. including earnings press release. the Statutory Auditor and the Cost Auditor. as required. debenture holders. September 22. e. The quorum of the Committee is two members or one-third of its members. 2009. all of whom are financially literate and have relevant finance and/or audit exposure. effectiveness and quality of the Company’s system of internal control. i. 2009. accounting and financial reporting principles. May 27. During the year. fixing audit fees and approving non-audit/ consulting services provided by the statutory auditors’ firms to the Company and its subsidiaries. August 28. Recommending the appointment/removal of the statutory auditor. The Committee meetings are held at the Company’s Corporate Headquarters or at its plant locations and are usually attended by the Vice Chairman.Review Reports on the Management Discussion and Analysis of financial condition. with the management. j.). Mr S M Palia is the financial expert. November 26. Managing Director-India Operations. appointment. September 9. f.

in Lacs) Commission 93 22 72 20 18 14 Sitting Fees 2. qualifications and experience of the employee. b. approved the payment of remuneration by way of commission to the non-Whole-time directors of the Company. for a period of 5 years commencing April 1.e. March 31. Remuneration of employees largely consists of basic remuneration.5. are given below: Non-Executive Directors Name Ratan N Tata Ravi Kant (1) N A Soonawala J J Irani R Gopalakrishnan N N Wadia (1) (Rs. The Remuneration Committee comprises two Independent Directors (including the Chairman of the Committee) and 2 NonExecutive Directors. 2009. perquisites. The sitting fees paid/payable to the non-Wholetime Directors is excluded whilst calculating the above limits of remuneration in accordance with Section 198 of the Act. The remuneration by way of commission to the non-executive directors is decided by the Board of Directors and distributed to them based on their participation and contribution at the Board and certain Committee meetings as well as time spent on operational matters other than at meetings. etc. performance/ track record. 2010 Appointed w. A sitting fee of Rs. at the Annual General Meeting held on July 24. The components of the total remuneration vary for different employee grades and are governed by industry patterns. calculated in accordance with the provisions of the Act. Annual increments are decided by the Remuneration Committee within the salary scale approved by the Members and are effective from April 1. c. 2008.60 1. REMUNERATION COMMITTEE The Remuneration Committee of the Company is empowered to review the remuneration of the Managing Director and the Executive Director.60 2.60 2.60 Name S M Palia R A Mashelkar S Bhargava N Munjee V K Jairath Commission 47 28 20 52 14 Sitting Fees 4.80 2. responsibilities handled by him. Ethics & Compliance Committee and Rights Committee is paid to its Members (excluding Managing Directors).f. Audit Committee. annually. 2010 Remuneration Policy a.20.f.e.000/.80 Appointed as Vice-Chairman w. Executive Committee. April 23.80 3.000/. The decisions are taken by the Committee at meetings or by passing circular resolutions.f. The annual variable pay of senior managers is linked to the Company’s performance in general and their individual performance for the relevant year is measured against specific major performance areas which are closely aligned to the Company’s objectives. one Remuneration Committee meeting was held on May 29. is responsible for performing an independent audit of the Financial Statements and expressing an opinion on the conformity of those financial statements with accounting principles generally accepted in India. Remuneration Committee and Nominations Committee and Rs. allowances and performance incentives. The composition of the Remuneration Committee and attendance at its meeting is as follows:Composition Meetings attended (1) N N Wadia (Chairman) 1 (2) Ratan N Tata 1 N A Soonawala(1) 1 S Bhargava 1 Ravi Kant(2) - Ceased to be a Director w. June 2.for Investors’ Grievance Committee.for attendance at each meeting of the Board. The Directors’ remuneration and sitting fees paid/payable in respect of the Financial Year 2009-10. The Company pays remuneration by way of salary. During the year under review.20 4. The Company also reimburses out-of-pocket expenses to Directors attending meetings held at a city other than the one in which the Directors reside. retirement benefits to be paid to them under the Retirement Benefit Guidelines approved by the Board and deal with matters pertaining to Employees’ Stock Option Scheme. perquisites and allowances (fixed component). Mumbai (Deloitte) (Registration Number 117366W) the Company’s independent Statutory Auditor. of a sum not exceeding 1% per annum of the net profits of the Company. The Members had.80 2. 2008.Sixty-fifth annual report 2009-10 Tata Motors Limited Deloitte Haskins & Sells.20 1. incentive remuneration and/or commission (variable components) to its Managing Directors. The remuneration of the Managing Directors is recommended by the Remuneration Committee based on criteria such as industry benchmarks. the Company’s performance vis-à-vis the industry. his individual performances. macro economic review on remuneration packages of heads of other organisations and is decided by the Board of Directors.e. d.30 2. responsibilities shouldered. 2009 38 .

Company Secretary.16 63. 2009.18 3. 2010 which were attended by all the Members. two Investors’ Grievance Committee meetings were held on August 25.f. Retirement Policy for Directors The Company has adopted the Guidelines for retirement age wherein Managing and Executive Directors retire at the age of 65 years whilst all the Non-Executive Directors retire at the age of 75 years.00 13. Service Contracts. can be contacted at: Tata Motors Limited.f. Homi Mody Street. During the year under review.00 350.e. Mr R Gopalakrishnan. Details of remuneration are included in the Notice of the Annual General Meeting. non-receipt of annual reports.com. Severance Fees and Notice Period Terms of Agreement Period of Contract Severance fees (1) Mr Ravi Kant (1) Managing Director July 29.57 Includes leave enhancement (2) Payable in FY 10-11 available (4) For part of the year upto June 1. the retiring Managing Director is entitled to residential accommodation or compensation in lieu of accommodation on retirement.00 (Rs. 1358 78 1435 1(1) 8892 1 SEBI complaint was replied to within 8-15 days but the same has been reflected as unresolved as on 31. The Investors’ Grievance Committee of the Board is empowered to oversee the redressal of investors’ complaints pertaining to share/debenture transfers. transmission (with and without legal representation) of shares and debentures matters pertaining to Company’s fixed deposit programme and other miscellaneous complaints.3.22 Perquisites & Allowances(1) 43. interest/dividend payments. Independent Director as the Chairman. 2012 The Contract may be terminated by either party giving the other party six months’ notice or the Company paying six months’ salary in lieu thereof.com Complaints or queries relating to the shares can be forwarded to the Company’s Registrar and Transfer Agents – M/s TSR Darashaw Ltd.03.e.2010. There is no separate provision for payment of Severance fees.e. offering special retirement benefits including pension. 2009 and February 24. 39 .2010 Other Queries received from shareholders and depositors and replied (1) Nos. ex-gratia. issue of duplicate certificates. in Lacs) Retirement Benefits (3) 122. Vice Chairman. The Company has also adopted a Retirement Policy for Managing and Executive Directors which has also been approved by the Members of the Company. The quantum and payment of the said benefits are subject to an eligibility criteria of the retiring director and is payable at the discretion of the Board in each individual case on the recommendation of the Remuneration Committee. Appointed as Managing Director – India Operations w. 91 22 6665 7824 / Fax: 91 22 6665 7260 / Email: inv_rel@tatamotors. 2009 Mr P M Telang (2) Managing Director – India Operations June 2. who is the Compliance Officer. is as follows:Type Complaints regarding non-receipt of dividend/interest. An abstract and memorandum of interest under Section 302 of the Companies Act. June 2. In addition to the above. Mumbai – 400 001. as per the conditions for complete resolution defined by SEBI.co. Bombay House. 2009. April 1. 2005 to June 1.Managing Directors Name Mr P M Telang Mr Ravi Kant(4) (1) Salary 54. The status on the total number of complaints received during the FY 2009-10.70 (3) Commission (2) 240.f. 2010. whereas complaints or queries relating to the public fixed deposits can be forwarded to the Registrars to the Fixed Deposits Scheme – M/s Link Intime India Private Limited at tmlfd@linkintime. 24. shares lodged for transfer Complaints received from the shareholders through SEBI and other statutory bodies and resolved Complaints redressed out of the above Pending complaints as on 31. NonExecutive Director and Mr Ravi Kant. India. INVESTORS’ GRIEVANCE COMMITTEE The Investors’ Grievance Committee comprises of Mr S M Palia. (2) Appointed as Vice Chairman in Non-Executive capacity w. 2009 to June 21. Tel: 91 22 6665 8282. The Company has not issued any stock options to its Directors/employees. medical and other benefits. 1956 has been sent to the members of the Company. 2009 Excludes provision for encashable leave and gratuity as separate actuarial valuation is not Chief Executive Officer & Managing Director Mr Carl-Peter Forster was appointed as Chief Executive Officer and Managing Director of the Company w. at csg-unit@tsrdarashaw.in. June 2. Compliance Officer Mr H K Sethna.

allotment of shares and/or debentures.31 21. fraudulent encashment and non-receipt of dividend amounts. borrowing and other routine matters. 40 . Mr Ratan N Tata.68 0.. During the year under review. Significant issues pertaining to subsidiary companies are also discussed at Audit Committee meetings. Independent Director as the Chairman and Mr R Gopalakrishnan. Mr N A Soonawala (ceased to be a Director w. etc. 2010). two meetings of the Committee were held on August 25. The Committee also discusses the matters pertaining to legal cases. and executed documents received for issue of duplicate certificates and transmission of shares without legal representation which involved checking of the documents. Apart from disclosures made in the Directors' Report there were no strategic investments made by the Company’s non-listed subsidiaries during the year under review. The Nominations Committee of the Board was constituted with the objective of identifying independent directors to be inducted on the Board and to take steps to refresh the constitution of the Board from time to time. launching a shareholders discount scheme. arranging factory visits. 2010 ** Appointed w.e. The Ethics and Compliance Committee was constituted to formulate policies relating to the implementation of the Tata Code of Conduct for Prevention of Insider Trading (the Code). The Ethics and Compliance Committee comprises of Mr S M Palia. complaints and suggestions received from investors are considered and addressed appropriately.f.e. launching an odd lot scheme. Chief Financial Officer. no meeting was held under this Committee. take on record the monthly reports on dealings in securities by the “Specified Persons” and decide penal action in respect of violations of the applicable regulations/the Code. April 23.f. co-ordination with the Company/Advocate etc.e. 2010. OTHER COMMITTEES The Executive Committee of Board reviews capital and revenue budgets. 2010). two Committee meetings were held on September 16. SUBSIDIARY COMPANIES The Company does not have any material non-listed Indian subsidiary company and hence. During the year under review. Out of the above. etc. March 31.00 66. real estate and investment transactions. There were no pending share transfers and complaints pertaining to the Financial Year ended March 31. Mr S M Palia and Mr Ravi Kant (appointed w. the organizational structure of the Company.e. long-term business strategies and plans.f.78 0. acquisitions and divestment. the Board of Directors also constitutes Committee(s) of directors with specific terms of reference. 248 complaints pertained to letters received through Statutory/Regulatory bodies and those related to Court/Consumer forum matters. NonExecutive Director.Sixty-fifth annual report 2009-10 Tata Motors Limited All letters received from the investors are replied to and the response time for attending to investors’ correspondence during FY2009-10 is shown in the following table: Number % Total number of correspondence received during 09-10 Replied within 1 to 4 days of receipt Replied within 5 to 7 days of receipt Replied within 8 to 15 days of receipt Replied after 15 days of receipt(1) Received in last week of March 2010 and replied in April 2010 10328 6848 2250 1104 81 45 100. sending notices to the Stock Exchange and issuing duplicate certificates/transmission of shares after approval from the Company. is given hereunder:Composition Ratan N Tata Meetings attended 2 N A Soonawala* J J Irani R Gopalakrishnan N N Wadia Ravi Kant Carl–Peter Forster** P M Telang 2 2 2 2 2 * Ceased to be a Director w. April 23. The Nominations Committee comprises of Mr N N Wadia as the Chairman. 2009 and January 13. it is not required to have an Independent Director of the Company on the Board of such subsidiary company. the Company has taken various investor friendly initiatives like sending reminders to investors who have not claimed their dues.f. During the year under review. sending nominations forms. 2009 and February 24. Critical feedback. 2010 which were attended by all the Members. 2010. risk management. March 31. comprising of the Managing Director and the Senior Management which meets from time to time to fulfill the community and social responsibilities of its stakeholders. Mr C Ramakrishnan. acts as the Compliance Officer under the said Code. as it may deem fit. Apart from the above. On recommendations of the Investors’ Grievance Committee. The composition of the Executive Committee of Board and attendance at meetings.44 (1) These correspondence pertained to court cases which involved retrieval of case files from records.2010 The Executive Committee of the Board formed a Donations Committee in September 2003 and a Corporate Social Responsibility (CSR) Committee in January 2006. The Audit Committee also has a meeting wherein the CEO and CFO of the subsidiary companies make a presentation on significant issues in audit. internal control. new business forays and donations.79 10.

Securities and Exchange Board of India or any other statutory authority relating to the capital markets during the last 3 years. GENERAL BODY MEETINGS Location and time of General Meetings in the past 3 years: Date August 25. The Independent Directors are encouraged to attend training programmes that may be of relevance and interest to the Directors in discharging their responsibilities to the Company’s stakeholders. Training of Board Members: The Directors interact with the management in a very free and open manner on information that may be required by them.The minutes of all the subsidiary companies are placed before the Board of Directors of the Company and the attention of the Directors is drawn to significant transactions and arrangements entered into by the subsidiary companies. 2006. 19. The performance of all its subsidiaries is also reviewed by the Board periodically.The Nomination Committee takes into consideration criteria such as qualifications and expertise whilst recommending induction of non-executive directors on the Board. Please refer to ‘DISCLOSURES’ given above. Audit Qualifications: During the year under review. Mechanism for evaluating non-executive Board members: The performance evaluation of non-executive members is done by the Board annually based on criteria of attendance and contributions at Board/Committee Meetings as also for the role played other than at Meetings. The Company continues to adopt best practices to ensure a regime of unqualified financial statements. Mumbai – 400 020. The status of compliance in respect of non-mandatory requirements of Clause 49 of Listing Agreement is as follows:Chairman of the Board: Being the Group Chairman. None of the items to be transacted at the ensuing meeting is required to be passed by postal ballot. The Audit Committee and the Board have adopted a Whistle-Blower Policy which provides a formal mechanism for all employees of the Company to approach the Management of the Company (Audit Committee in case where the concern involves the Senior Management) and make protective disclosures to the Management about unethical behaviour. Shareholder Rights: Details are given under the heading “Means of Communications” . the Company does not reimburse expenses incurred by the Non-Executive Chairman for maintenance of a separate Chairman’s office. there were no other materially significant related party transactions that may have a potential conflict with the interests of the Company at large. The disclosures reported are addressed in the manner and within the time frames prescribed in the Policy. the Board is encouraged to seek a balance between change and continuity. Sir Vithaldas Thackersey Marg. The Company has complied with various rules and regulations prescribed by stock exchanges. the Board of Directors has adopted the Revised Guidelines (2006) regarding the retirement age of Directors. there was no audit qualification in the Company’s financial statements. Whistle Blower Mechanism: The Company has adopted a Whistle-Blower Policy. The following are the Special Resolutions passed at General Meetings held in the past 3 years: Date of Meeting Summary August 25. actual or suspected fraud or violation of the Company’s Code of Conduct or ethics policy. 2007 Change in place of keeping registers/records All resolutions moved at the last Annual General Meeting were passed by a show of hands by the requisite majority of members attending the meeting.m. Orientation and factory visits are arranged for new Directors. 2009 July 24. No penalties or strictures have been imposed by them on the Company. 2008 Commission to non Whole time Directors July 9. on the merit and contribution of each Director. 2008 July 9. In line with best practice to continuously refresh the Board’s membership. Remuneration Committee: Details are given under the heading ‘Remuneration Committee’. 41 . At its meeting held on July 25. 2007 Year 2008-2009 2007-2008 2006-2007 Type Annual General Meeting Venue Birla Matushri Sabhagar. A tenure of 9 years may be considered a threshold for granting further tenure for independent directors based. The Company affirms that no employee of the Company has been denied access to the Audit Committee. Time 3:00 p. inter alia. DISCLOSURES Besides the transactions mentioned elsewhere in the Annual Report. 2009 No Special Resolution passed July 24.

2002. Ordinary Shares ‘A’ Ordinary Shares ADRs/GDRs Type ADR GDR Listing New York SE Luxembourg SE Ticker Symbol TTM TTM LX Description Common Shares Common Shares Currency INR INR ISIN CUSIP US8765685024 876568502 US8765686014 876568601 SEDOL B02ZP96US B4YT1P2 INE155A01014 IN9155A01012 BSE 500570 570001 Ending March 31 Thursday. The official news releases.com. The following are the listed details of the Company shares/ADRs /GDRs Shares Type ISIN No. September 1. . The Annual Report. Members also have the facility of raising their queries/complaints on share related matters through a facility provided on the Company’s website. Annual Reports. September 1. Hard copies of the said disclosures and correspondence are also filed with the Stock Exchanges. 2010.tatamotors. The Dividend warrants will be posted/dividend amount will be remitted in to the shareholders account on record on or after September 2. as announced by the Reserve Bank of India vide its circular dated February 13.The Global Depositary Shares (GDSs) issued in October 2009 are listed on the Luxembourg Stock Exchange since then. please refer to ‘Outstanding Securities’ section of this Report. Please also refer to the section on ‘Outstanding Depositary Receipts and Convertible instruments’ for details pertaining to international listing of Foreign Currency Convertible Notes. Shareholding Pattern of the Company are posted through Corporate Filing and Dissemination System (CFDS). presentations made to Analysts etc. Mumbai 400 020 Financial Calendar Financial Year Date of Book Closure Dividend Payment Date Listing The Company’s securities are listed on the Bombay Stock Exchange Ltd. 19. 2010 (both days inclusive) September 2. . International Listing There are two separate programs for the Company’s Depositary Receipts. 2010 at 3:00 p.m. Shareholding Pattern. The said GDSs are also traded on London Stock Exchange on IOB platform.Sixty-fifth annual report 2009-10 Tata Motors Limited MEANS OF COMMUNICATION The Quarterly.The American Depositary Shares (ADSs) (through the conversion of its International Global Depositary Shares into American Depositary Shares (ADSs) are listed on the New York Stock Exchange (NYSE) since September 27. (BSE) and National Stock Exchange of India Ltd. Sir Vithaldas Thackersey Marg. 2010 Stock Code NSE TATAMOTORS TATAMTRDVR Two-way Fungibility of Depositary Receipts The Company offers foreign investors the facility for conversion of Ordinary Shares into American Depositary Receipts within the limits permissible for two-way Fungibility. 2004. 42 . a portal which is a single source to view information filed by listed companies. including on the quarterly and annual results and presentations made to institutional investors analysts are also posted on the Company’s website www. Half Yearly and Annual results are regularly submitted to the Stock Exchanges in accordance with the Listing Agreement and are generally published in Indian Express. Venue Birla Matushri Sabhagar. 2010 to Wednesday. August 12. GENERAL INFORMATION FOR MEMBERS Annual General Meeting Date and Time Wednesday. Quarterly Results. For details on listings of Non-Convertible Debentures on the Wholesale Debt market segment of the NSE. Financial Express and Loksatta (Marathi). The ‘Investor Centre’ section on the Company’s website keeps the investors updated on material developments in the Company by providing key and timely information like details of Directors. Financial Results. The information regarding the performance of the Company is shared with the shareholders every six months through a half yearly communiqué and the Annual Report. (NSE).

65 403.00 257.) 281.55 Low (Rs.00 258.90 792.35 281.30 552.35 688.30 529.05 400.40 725.85 694.35 484.35 667.10 320.) 282.90 291.15 262.60 499.) 179.05 379.95 508.Market Information Market price data .00 369.55 499.95 473.00 387.05 421.30 290.35 422.40 551.) BSE Sensex & Auto Index 43 ADR and GDR . Auto Index.monthly high/low of the closing price and trading volumes on BSE/NSE depicting liquidity of the Company’s Ordinary Shares and ‘A’ Ordinary Shares on the said exchanges is given hereunder:Ordinary Shares Bombay Stock Exchange Limited Month Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 ‘A’ Ordinary Shares Bombay Stock Exchange Limited Month Apr-09 May-09 June-09 July-09 Aug-09 Sept-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 High (Rs.50 587.60 827.35 437.25 300.10 513.55 498.95 420.15 791.) 180.85 589.90 389.20 529.25 No.70 811.50 No.) 270. of Shares 132851917 95619349 104660486 124196425 157214322 114392736 104393790 84839649 75784684 61047700 59038143 107797746 The Performance of the Company’s Stock Price vis-à-vis Sensex.00 296. of Shares 604 200 3589 17092 147441 2303801 2352053 12598044 2650777 2422470 1547447 1934619 High (Rs.75 262.85 365.20 421.70 694. ADR and GDR: Tata Motors Ordinary Shares and 'A' Ordinary Shares Tata Motors Ordinary Shares (in Rs.00 Low (Rs.55 826.85 495.25 389.00 275.85 508.) 281.25 417.00 334.25 No.75 431.50 472.95 450.75 318.95 449.45 721.) 175.55 813.10 437.30 Low (Rs.70 725.85 687.00 309.35 210.50 482.15 417.50 363.85 515.00 421.05 413.25 663.) 215.35 429.00 305.35 668.35 420.65 379.55 511.85 256.20 267. of Shares 34420570 21493784 27410306 31716743 41261458 29474014 23635466 19536007 18126114 12800386 12161992 66820072 National Stock Exchange of India Limited High (Rs.05 383.40 721.70 614.65 Low (Rs.00 509.20 No.65 614.40 415.00 235.20 363.00 350.40 660. of Shares 91 177 5024 12378 1612691 2278027 1714932 5902577 1640279 831539 289058 1311024 National Stock Exchange of India Limited High (Rs.

“E” Road.com 4 Plot No. Members are requested to correspond with the Company’s Registrar and Transfer Agents – M/s TSR Darashaw Limited quoting their folio no. 84. e-mail : csg-unit@tsrdarashaw.51 14.in Share Transfer System Securities lodged for transfer at the Registrar’s address are normally processed within 15 days from the date of lodgement.2594 6960-4 Fax: 022-2594 6969 II. Senior Executives of the Company are empowered to approve transfer of shares and debentures and other investor related matters.com 2 Bungalow No.15 14. are processed by the Registrars within 15 days.03 16. Dr. website:www.04 14. email : tmlfd@linkintime. For the convenience of investors based in the following cities. 43.52 7.28 16. Fort Unit : 203. Tel : 033 – 22883087.Tel: 022-6656 8484.17 8.38 11. email : tsrdljsr@tsrdarashaw. on half-yearly basis.42 Registrar and Transfer Agents For Share related matters.Sixty-fifth annual report 2009-10 Tata Motors Limited The monthly high and low of the Company’s ADRs and GDRs is given below: Month April-09 May-09 June-09 July-09 August-09 September-09 High 7. 6-10.89 15. Daryaganj.2/42.33 Low 5. Jamshedpur – 831 001.com. 5th Floor. Tel: 0657 – 2426616. .58 10.89 14.32 17. e-mail : tsrdlbang@tsrdarashaw.63 14. Mumbai 400 078. Ahmedabad .tsrdarashaw. Northern Town.77 Low 11. Opp. Jawaharlal Nehru Road. New Delhi – 110 002. Kolkata – 700 071. Unit: Tata Motors Limited. mandates. Barton Centre. 44 i.com ii.560 001. Bhandup Unit : C 13.com 3 Tata Centre. Fax : 033 – 22883062. Mumbai – 400 011. Ansari Road. Pritamnagar Akhada Road. Tel : 080– 25320321. transfer documents and letters will also be accepted at the following branches/agencies of TSR Darashaw Limited: 1 503. Tel 022-22694127.65 14. Secretarial Audit Pursuant to Clause 47(c) of the Listing Agreement with the Stock Exchanges.com Agent: Shah Consultancy Services Limited: 3-Sumathinath Complex. Tel : 011 – 23271805.72 15. Bangalore . Bistupur.05 17.36 11. Fax : 011 – 23271802. 20./DP ID & Client ID at the following addresses: For transfer lodgement. Tel: 079–2657 6038. have been issued by a Company Secretary-in-Practice for due compliance of share transfer formalities by the Company. etc. Haji Moosa Patrawala Industrial Estate. Grievances received from investors and other miscellaneous correspondence on change of address. The audit confirms that the total issued/paid up capital is in agreement with the aggregate of the total number of shares in physical form and the total number of shares in dematerialised form (held with NSDL and CDSL).36 7. Mahalaxmi. Fort. Email: shahconsultancy8154@gmail. delivery and correspondence: TSR Darashaw Limited.24 17.10 13.81 10. certificates.72 15. D N Road.70 (in US$) Low 11. A Company Secretary-in-Practice carried out a Secretarial Audit to reconcile the total admitted capital with NSDL and CDSL and the total issued and listed capital.com For Fixed Deposits.55 12.co.39 15. Kothawala Flats. if the documents are clear in all respects.58 ADRs Month October-09 November-09 December-09 January-10 February-10 March-10 High 12. LBS Marg.69 17.65 11.19 18. Davar House. Pannalal Silk Mills Compound. 197/199. Mahatma Gandhi Road. Tel: 022. Fax: 0657 – 2426937. Sant Vihar. Fax : 080-25580019. All requests for dematerialization of securities are processed and the confirmation is given to the depositories within 15 days. e-mail : tsrdldel@tsrdarashaw.64 10.1. 1st Floor. the investors are requested to correspond with the Registrars to the Fixed Deposits Scheme – M/s Link Intime India Private Limited at the following addresses: I.380 006. Fax: 022. e-mail : tsrdlcal@tsrdarashaw. E Moses Road.11 10. Bhandup (West).6656 8494.18 18. Ellisbridge. Mumbai 400 001.70 Month October-09 November-09 December-09 January-10 February-10 March-10 GDRs High 12. Next to Central Camera Building.

88 54082644 84.34 1.46 0.Shareholding Pattern as on March 31.5000 5001 -10000 Above 10000 Total No.13 100.00 'A' Ordinary Shares As on As on March 31.07 3. Ordinary Shares Range of Shares 1 . of shares 746294 284144 364155 425574 323450 62032757 64176374 No.74 Unit Trust of India Government Companies.05 97.35 (31. 2010 No.57 0.62%) of the paid-up capital were pledged.1000 1001 .41 0 1. Foreign companies 88151027 17.83 32077806 7.84 0 (3.50.63 10. of Holders 10135 383 245 140 45 125 11073 No. 2009 – 13.04 7.00.05 0.21 1.78 69376399 15.00 *187733595 41.11 1.95 % of Capital 4.55 0.04 0.26 0.50 0.89 % of Capital 1.62 1.26 0 0.86 0 0.57 0 0. 2009 No.23 1.71 85. of shareholders Physical Demat form (%) form (%) 14.42 2.44 0.22 11.100 101 .13 NRIs.19 19.41 1.00 No.00 No.67 76.50 0 96.43 0.02 2. 2009 – 6.15 12335785 2. of shares Physical Demat form (%) form (%) 0. 4.85 100 20.13 14. New York.66 100.69 1829568 0 64176374 100 64175655 * Out of the Promoter holding.28 0. 79913933 15.000 shares) aggregating 8.27 4401585 6.12 0. of shares Physical Demat form (%) form (%) 1.01 2.69 2.100 101 .73 Mutual Funds and 10880291 2.58 90.89% (March 31.500 501 .19 100.66 0.70) 6859048 10.20 0 1.44 0 0. Banks and cos Foreign Institutional Investors 90289797 17.70 (2.58 100. 2009 March 31. of shares held 137858939 58916055 54859845 34226139 9023297 % to paid-up capital 27.18 0.39) 6.10 0 0. NYADR department Life Insurance Corporation of India Limited Tata Steel Limited Tata Industries Limited No.03) 13166186 20.09 0.99 8196838 12.17 0. of Holders 341041 11509 4605 1989 422 671 360237 No.29 % of Capital 91. of % shares shares 33934959 52.76 1. Top shareholders (holding in excess of 1% of capital) as on March 31.52 681546 1.43 Financial Institutions.19 1.67 3.44 and ADRs/GDRs Others 49769246 9.50 96.23 1.28 0.03 3. 2010 March 31.71 % of Capital 94.43 1.83 60868100 13.66 0 0.59) 0.16 90. 2010 Ordinary Shares Name of Shareholder Tata Sons Limited Citibank N. 2010 Ordinary Shares As on As on March 31.500 501 .18 1.77 % Variance 10 V/s 09 % Variance 10 V/s 09 (4.27 1.66 0.46 2.29 80.06 55450 11155 0.51 0.86 (4.00 No.50.78) 10.26 76.53 Total 506381170 100 449832659 100 Category Distribution of shareholding as on March 31.07 0.02 0. of shareholders Physical Demat form (%) form (%) 18.73) (0. of shares 24128446 8201490 6441641 5987365 2928976 458693252 506381170 No.00 5133050 7.12.77 1.41 87440974 19.53 3.11 99.00 0.41 0.78 45 . 2010.000 shares (March 31. of % No.1000 1001 .83 6. of % No.70 0.06 0 0.A.09 0.86 0.5000 5001 -10000 Above 10000 Total 'A' Ordinary Shares Range of Shares 1 . of % shares shares Promoters and Promoter Group *187376876 37.

Foreign Currency Convertible Notes 70366 -1% Convertible Notes (due 2011) of US$1000 each.4% Convertible Notes (due 2014) of US$100000 each aggregating US$375 million issued in October 2009 may. 2009 to October 16.152 Ordinary Shares on March 30. 46 .Zero Coupon Convertible Notes (due 2011) of JP¥10. may at the option of the Note holders.51 2.204. Depositary Receipts 58. conversion date and likely impact on equity: A.000 each aggregating JP¥750 million issued in March 2006. 2010 through NSDL and CDSL are as follows-: Particulars NSDL CDSL Total Ordinary Shares 2010 (%) 2009 (%) 96.12 2.54 1.312. Pru India Equity Open Limited Swiss Finance Corporation (Mauritius) Limited Tata Industries Limited JM Financial Consultants Pvt.733.941. 1071 Notes were converted into 7.920.72 per share (Reset Price) at any time up to February 19.305 Ordinary Shares/ADSs at Rs. 2010 pursuant to the Company offering enhanced conversion terms for a limited term to Non-US holders. be converted into 27.000 each aggregating US$ 473 million issued in July 2007 which allow the Company to give the holder an option to convert the CARS.93 99. be converted into 299.Zero Coupon Convertible Alternative Reference Securities (due 2012) of US$100. Ltd. 75 .83 No.89 99. may at the option of the Note holders.905 GDSs listed on the Luxembourg Stock Exchange. 1.37 million issued in April 2004. inter alia.49 per share (Reset Price) at any time into GDSs during November 25. 2010 ‘A’ Ordinary Shares Name of Shareholder Tata Sons Limited IFCI Ltd.44 89. aggregating US$70.65 1. at the Option of the Note holders.16 97.90 per share (Reset Price) at any time up to March 28. 2011.305 ADSs listed on the New York Stock Exchange.95 91. into qualifying securities as per terms of issue.000. 229.82 1.79 0.925.Sixty-fifth annual report 2009-10 Tata Motors Limited Top shareholders (holding in excess of 1% of capital) as on March 31.57 1.27 1.621.45 6. 2014. 2010 to October 16.403 Ordinary Shares/ADSs at Rs.816. 2014 and ADSs at anytime during October 15.69 1. B.85 ‘A’ Ordinary Shares 2010 (%) 2009 (%) 98. be converted into 4. CUSIP Listing at 1% Notes (due 2011) Zero Coupon Notes (due 2011) Zero Coupon Notes (due 2012) 4% Notes (due 2014) USY8548TAF85 XS0245217889 XS0307881762 XS0457793510 Y8548TAF8 024521788 030788176 045779351 Singapore Stock Exchange Luxembourg Stock Exchange There are no outstanding warrants issued by the Company.827. 2011. 2010 pursuant to the Company offering enhanced conversion terms for a limited term to Non-US holders.09 Outstanding Securities: Outstanding Depositary Receipts/Warrants or Convertible instruments. of shares held 32379478 4076238 3924399 1808220 1061638 1006255 989442 816807 778690 714519 700000 % to paid-up capital 50. The following are the relevant details of the notes: Security Type ISIN Nos.Goldman Sachs Brics Portfolio Abu Dhabi Investment Authority – Ganges Nomura India Investment Fund Mother Fund Dematerialisation of shares The electronic holding of the shares as on March 31. 4730 . 3750 .35 6.634 Notes were converted into 18. Dragon Peacock Investments Limited ICICI Bank Limited Goldman Sachs Funds .04 99.114 Ordinary Shares on March 30.010 Ordinary Shares at Rs.96 0.21 1.11 1.

Chikhali. Mummigatti Post. Ahmedabad .800 crores Rs. Tal.100 crores Nil Nil 9. CBD – Belapur.75 *Detailed information on the above debentures are included in the ‘Notes to Accounts’. (ii) In case of non receipt/non encashment of the dividend warrants. Already transferred to IEPF.400614.150 crores – April 30. II of the Companies CGO Complex. I.E. Pune – 411 033 Jamshedpur – 831 010 Chinhat Industrial Area. Sanand. 2022 Rs. District Udhamsingh Nagar. Pune – 411 018.55 crores Rs.A. Village Northkotpura. Utility Vehicles (UVs) and Cars M&HCVs M&HCVs and LCVs LCVs & Cars Passenger Cars Project under construction / implementation Tata Motors Limited. Already transferred to IEPF.96 crores Rs. 2000-01 and 2001-02 N. application money. Not Applicable due to non declaration of dividend 1995-96 to 1999-2000 No None.1250 crores Rs. 1978-79 to 1994-95 Yes Office of the Registrar of Companies.200 crores Rs. 2023 Rs. Unpaid Dividend (Transfer to General Next to RBI.95 10. 1.919.150 crores – April 30. Plant Location Pimpri. 2nd floor.40 8. the following Non Convertible Debentures (NCD) are listed on the National Stock Exchange under Wholesale Debt Market segment* ISIN Number INE155A07169 INE155A07177 INE155A07185 INE155A07193 INE155A07219 INE155A07227 Tranche Rs. Belur Industrial Area. Dist. 2013 March 31..03 9. Homi Mody Street. 2002-03 No None. 2024 Rs. Light Commercial Vehicles (LCVs).I. Mumbai . Dharwad – 580007 Address for correspondence Range of Products Produced Medium and Heavy Commercial Vehicles (M&HCVs).1800 crores Rs. 2020 INE155A08043 INE155A08050 Plant Locations Rs. Claim in Form No. Bombay House. India.23 crores Nil Nil Yield to Maturity (%) 6. 2020 May 24.96.25 Date of Maturity March 31.658. Pantnagar.150 crores Rs. proceeds of matured deposits and interest and redeemed debentures and interest thereon:(i) Pursuant to Sections 205A and 205C of the Act.100 crores – April 30. debenture interest and interest on deposits as well as principal amount of debentures and deposits pertaining to the Company and erstwhile Tata Finance Limited (TFL) remaining unpaid or unclaimed for a period of 7 years from the date they became due for payment.400 001. ‘A’ Wing.500 crores Redemption Premium Rs. Lucknow – 226 019 Plot No. 1978.100 crores – April 30. Uttarakhand – 263145 Revenue Survey No. Members are requested to correspond with the Company’s Registrars/the Registrar of Companies. 91 22 2757 6802 47 . 2016 March 2. 24.71. all unclaimed/unpaid dividend. Section 11.Apart from Shares and Convertible Instruments.380 015 KIADB Block II. 2014 March 31. Navi Revenue Account of the Central Mumbai . Pune – 410 501 Chinchwad. 2025 May 7. 1. Maharashtra Government) Rules. have been transferred to the Investors Education and Protection Fund (IEPF) established by the Central Government. Action required regarding non-receipt of dividends. 2020 Rs.05 crores Rs.90 9.350 crores Rs.75 8.45 10. as mentioned hereunder: Dividend for Whether it can Contact Office Action to be taken be claimed 2003-04 to 2008-09 Yes TSR Darashaw Limited Letter on plain paper. 2011 March 31.

10 12.145. Any change in their address/mandate/NECS bank details.520. in case they have not been furnished earlier.08 3.452. 2009 2.90. Actual dates may vary. 2008 August 25.812.84.33.60.30.04. Particulars of the bank account in which they wish their dividend to be credited. 2011 July 10.47.05.351.605. attention of the stakeholders is again drawn to this matter through the Annual Report. 2016 (iv) Following amounts have been transferred to IEPF during the year: (In Rupees) Particulars Unpaid Dividend amounts of the Company Application moneys received for allotment of any securities and due for refund Unpaid matured deposit with the Company Unpaid matured debentures with the Company Interest accrued on matured deposits with Company Interest accrued on matured debentures with Company Total As on March 31.00 13.20 (v) While the Company’s Registrar has already written to the Members.64 2.83.497.Sixty-fifth annual report 2009-10 Tata Motors Limited (iii) Following table gives information relating to outstanding dividend accounts and due dates for claiming :Financial Year 2003-04 (Interim) 2003-04 (Final) 2004-05 2005-06 2006-07 2007-08 2008-09 *Indicative dates.36. 2004 July 8.39.95.84. and 2.140.08 2. 2010 2.64 2.976.53 81.729.00 96.33.145.072. 2006 July 9. Other facilities of interest to shareholders holding shares in physical form Nomination facility: Shareholders.48. Shareholders are advised that respective bank details and address as furnished by them to the Company will be printed on their dividend warrants as a measure of protection against fraudulent encashment.788.00 3.33.33.605. who hold shares in single name and wish to make/change the nomination in respect of their shares as permitted under Section 109A of the Act.312.95.67. Bank details: Shareholders are requested to notify/send the following to the Company’s Registrars and Share Transfer Agents to facilitate better services: 1. 2012 July 10.00 2.37. 48 .32. the prescribed Form 2B. 2015 August 24.575. 2013 July 8.76. Date of Declaration February 22.09.351.00 NIL 27.60. 2009 Last date for claiming dividend * February 21.00 31. (vi) Investors of the Company and of the erstwhile TFL who have not yet encashed their unclaimed/unpaid amounts are requested to do so at the earliest. 2005 July 11.53 1. 2004 July 11. 2011 July 7. 2007 July 24.00 3.34 NIL 66. 2014 July 23.99 FY 09-10 NIL As at March 31.93.04.99 31. Debenture holders and Depositors informing them about the due dates for transfer to IEPF for unclaimed dividends/interest payments. may submit to the Registrars and Transfer Agents.209.08.

2010 PRACTISING COMPANY SECRETARIES’ CERTIFICATE ON CORPORATE GOVERNANCE TO THE MEMBERS OF TATA MOTORS LIMITED We have examined the compliance of the conditions of Corporate Governance by Tata Motors Limited for the year ended on March 31. The compliance of the conditions of Corporate Governance is the responsibility of the management. N. as applicable to them for the Financial Year ended March 31. We state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company. 2010. Parikh FCS: 327 CP: 1228 Mumbai. adopted by the Company for ensuring the compliance of the conditions of Corporate Governance.DECLARATION BY THE CEO UNDER CLAUSE 49 OF THE LISTING AGREEMENT REGARDING ADHERENCE TO THE CODE OF CONDUCT In accordance with Clause 49 sub-clause I(D) of the Listing Agreement with the Stock Exchanges. 2010. For Parikh & Associates Practising Company Secretaries P. May 27. It is neither an audit nor an expression of opinion on the financial statements of the Company. I hereby confirm that. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. and the representations made by the Directors and the Management. May 27. Our examination was limited to procedures and implementation thereof. as stipulated in clause 49 of the Listing Agreement of the said Company with the Stock Exchanges. all the Directors and the Senior Management personnel of the Company have affirmed compliance to their respective Codes of Conduct. For Tata Motors Limited CARL-PETER FORSTER Chief Executive Officer and Managing Director Mumbai. 2010 49 . In our opinion and to the best of our information and according to the explanations given to us.

38 49.50 24.017.36 360.25 37. Singapore Singapore Tata Hispano Motors Carrocera S.56 0.02 15.19 133.77 1.173.23 91.344.47) 13.24 0.070.41 (1.79) 0.82 68.52 395.00 0.64) 401.88 186.49) (2.25) (286. Page 51) 0.31 546.59 (0.00 10.69) 146.844.29 63.88 8.64 4.16) 40.52 390.70 1.34 63.65 417.13 1.V.) Mexico Tata Technologies Europe Limited (formerly known as INCAT Limited) UK INCAT GmbH Germany INCAT SAS France Tata Technologies (Thailand) Limited (formerly known as INCAT (Thailand) Limited) Thailand TATA Technologies Pte Ltd. India Tata Motors Insurance Broking & Advisory Services Ltd India Tata Motors European Technical Centre Plc.70 0.92 (8.41) 15. de C.031. Page 51) Tata Motors European Technical Centre Plc.16 4.80 103.81 (0.83 40.00) (6.93 282.84 140.37 11.33 3.02) 481.92 223.96 4.35 2.476.34 14.37 41.536.68 300.12 5. Belgium Jaguar Land Rover Austria GmbH Austria Jaguar Cars Overseas Holdings Limited UK Jaguar Italia SpA Italy Land Rover Group Limited Jersey Land Rover Ireland Limited Ireland Jaguar Land Rover Australia Pty Limited Australia Land Rover Exports Limited UK Land Rover Espana SL Spain Land Rover Deutschland GmbH Germany Land Rover Nederland BV Netherlands Land Rover Belux SA/NV Belgium Land Rover Italia SpA Italy Jaguar Land Rover Portugal-Veiculos e Pecas.67 90.) Canada Tata Technologies de Mexico.2009-10 (Rs.01) 66.94 2.04 1.47 32.35 15.98) 91.21 573.60 71.612.15 19.55 13.31 260.16 (7.06 143. Thailand TML Holdings Pte Ltd. India HV Axles Ltd.01) 46.) Spain INCAT International Plc Ltd U. Page 51) TML Holdings Pte Ltd.54 (0.98 576.16 1.96 80.23 0.37 0.15 324.56) 3.25 76.89 158.583.20) (0.91 29.53 6.61 4.42 3.21 114.03 3.67 39.09 8.90 88.04 1.38) 502.80 14.on consolidated basis including their respective subsidiaries included above Tata Technologies Limited ( Note A.38 210.73 2.93 71.73) 4.52 (1.84 597.94 95. South Korea Tata Technologies Ltd.00 130.31 0.23 115.05 8.27) 24.72 269.05 1.94 270.32) (608.52 (11.35 228.46) (1.32) (608.50) 30.69 680.76 (15.44 24.19 4.( Note B.00 0.96) 32.24 360.46 266.79 18.65 (0.70 0.081.76 44.82 68.21 783.277.88 8.56 0.39 28.16) 40.76 178.337.98 9. India Tata Daewoo Commercial Vehicle Co.757.08 0.59) (188.64 5.04 1.27 11.21 10.583.75 71.19) 0.24 23.91 1.24) (9.32 2.83 147.60 31.83 2.77 20.93) 352.13 663.94 0.00 154.58 4.00 represents rounded off .00 2.80 235.49 81.61 11. de C.28 101.23 3.07 3.33 18.07) 10.06 267.90 80.29 6.01) (38.26 24.00) (0. advances towards capital where applicable) 65.70) 0.52 (1.80 0.48 172.67 0.56 21.43 12.45 324.47 6.05 0.11 0.498.24 24.73) 4.74 18.16 4.35 37.70 17.00 (2.91) 250.30 0.27 (131.26 118.82 2.20) (0.55 3.92) 1.95 127.97 263.83 3.58 98.95 11.SUBSIDIARY COMPANIES: FINANCIAL HIGHLIGHTS .10 6.37 194.26 21.33) 1.67 (0.92 9.03 154.19 5.43) (1. Singapore Miljobil Greenland AS Norway JaguarLandRover Limited UK Jaguar Cars Limited UK Land Rover UK Jaguar Cars Exports Limited UK Jaguar Land Rover North America.33) 1. UK TML Distribution Company Ltd.80 75.24 2.42 4.107.09 0.43) (1.78) (1.94 0.92 364.00 0.49) (88.00 5.10 722.21 5.977.02 (48.50 0.00 57.67 (0.401.067.29 77.69 155.06 430.17 67.92 3.87 2.55 13.54) 12. USA Jaguar Hispania SL Spain Jaguar Deutschland GmbH Germany Jaguar Belux N.68 0.31 3.07) 8.97 (4.32 2. ( Note C.544.64 4.31 152.84 564.18) (0.69 6.579.92) (1.15 19.23 3. India HV Transmissions Ltd.59 (0.85 215.97 (1.53 (7.00 387.21 (3.86 (8.10 2.57 0.46 149.09 8.87 30.07 388. India Sheba Properties Ltd.25 4.19 13.35 30.94 0.52) 6.24 0.98) 125.802.02) (179.61 2.06 0.28 474.73) 4.00 1.98 (5.02 12.56 14.02 24.71 139.78 4.733.61 29.657.04 16.53 37.32 2.23) 213.75) 103.35 16.15 0.434. Morroco (w.18 10. Page 51) Tata Hispano Motors Carrocera S.50) (57.69 73.94 148.35 16.37 172.59 168.38 124.94 (1.86 15.82 2.78 (19.06 0.47 121.63 340.85 52.33 0.00 196.210.76 49.148. Portugal Jaguar Land Rover Mexico.58 37.24 (0.88 3.00 0.49) (57.63 161.68 801.61 38.65 201.41) 3. India Tata Motors (SA) (Proprietary) Ltd.00 96.96 13.60 141.76 49.349.19 19.00 0.49 81.25) (286.48 32.16 (7.83 6.48 128.16 5.67 252.39 28.21 0.00 135.00 170.721.952.52 49.10 6.18 1.91 29.50 553. Ltd China Jaguar Land Rover Japan Limited Japan Jaguar Land Rover Korea Company Limited South Korea Jaguar Land Rover Canada ULC Canada Jaguar Land Rover France SAS France Jaguar Land Rover (South Africa) (Pty) Ltd South Africa Jaguar Cars South Africa (Pty) Ltd South Africa Jaguar Land Rover Brazil LLC Brazil Daimler Transport Vehicles Limited UK S S Cars Limited UK The Lanchester Motor Company Limited UK The Daimler Motor Company Limited UK The Jaguar Collection Limited UK Land Rover Parts Limited UK Land Rover Parts NA LLC USA Jaguar Land Rover Russia LLC Russia Carrocera Hispano Maghreb.00 10.05 4.67 706.35 0.53 8.48 7.56 395.71 24.A.36 0.01 70.04) (14.54 67.460.f October 16.33 239.84 15.A.00 130.85 5.31 0.00 61.281.00 (2.55) (394.49) (88.46 920.46 57.13) (3.21 44.05 4.12 177.20) (0.99 3.92 309.39 (0.18) (1.02 711.84 543.42 0.27) (4.31 3.19 (9.00 773.24 (0.00) (1.25 374.82 68. LLC.47 25.57 172.05 617.00 111. SA de CV Mexico Jaguar Land Rover Auto Trade (Shanghai) Co.63 265.75 18.99 0.75 44.390.80 374.63 35.765.43 7.96 1.24) 11.281.36 8.913. India Tata Motors (Thailand) Ltd.58 187.16 296.78 391.77) (29.35 25.02 850.21 0. India Concorde Motors (India) Ltd.76) 58.27 11.30 605.78 (19.00 2.51 105.28 1.60 127.73 182.21 253.32 2.601.38) 502.42 197.00 10.10 2.754.85 3.04 309.21 0.14 1.06 34.83 (38.22 299.76 11.01 68.57 318.012.00 0. Ltd.38 44.83 17.15 0.59 (21.47 58.10 17.29 67.98) 91.73 37. S.48 331.68 0.86 (8.47) (88.80 426.00 40.09 5.) USA Tata Technologies Canada Inc.68 23.63 311.904.93 0.74 2.00 0.29 200.73 3.895.62 76.72 19.31 0.00 26.e.29 6.64) 1.69 423. Singapore ( Note D.32 77.78 4.05 4. Lda.65 561.A.00 45.56 1.94 0.88 680.90 136.47 391.24 (3. South Africa Tata Motors Finance Ltd.44 12.25 37. No Subsidiary I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 1 2 3 4 Details of Subsidiaries TAL Manufacturing Solutions Ltd.97 107.56 17.23 1.54 3.V.42 209. Tata Technologies Inc (formerly known as INCAT Systems Inc.11 0.24 0.12 5.70 207.96 29. (Formerly known as Hispano Carrocera S.18 2.333.75 44.91 2.92 207.34 63.60 88.96 1.84 904.25 791.88 0.32 (66.61 29. India Tata Marcopolo Motors Ltd.69 1.70 30.72 21.41) 26.18) (0.33 11.84 0.74 364.54 3.15 358.45 15.00 2.463.V.014.00 0.337.96) 0.25 532.375.69 (27.81 23.66 2.K.194.085.01 24.A. 2009) Spain Details of Direct subsidiaries .17 0.62 76.07) 10.20 8.27 1.84 52.38) 502.77) (29.57 7.36 0.79 (19.05 195.522.499.64 53. S. (formerly known as Integrated Systems Technologies de Mexico.09 10.83 225.52 (1.46) (1.197.67 4.59 2.56 14. (formerly known as INCAT Solutions of Canada Inc.85 52.43 12. In crores) Tata Motors Limited Sixty-fifth annual report 2009-10 50 Country of Incorporation Reporting currency # Share capital (incl.58 37.87 334.87 224.513.82 10.67 (0.25) (286.12 (192.37 0.21 Reserves and Surplus Minority Interest Foreign Currency Monetary Translation Difference Account Asset/ (Liability) Total Assets Total Liabilities Turnover Profit/ (Loss) Before Tax Tax Expense/ (Credit) Profit/ (Loss) after tax Profit/ (Loss) for the year * Proposed dividend and tax thereon Investments (except in case of investment in the subsidiaries) INR INR INR INR INR KRW INR INR GBP INR ZAR INR INR THB USD EURO GBP USD USD USD GBP EURO EURO THB SGD NOK USD GBP GBP GBP USD EURO EURO EURO EURO GBP EURO GBP EURO AUD GBP EURO EURO EURO EURO EURO EUR MXP CNY YEN KRW CAD EURO ZAR ZAR BRL GBP GBP GBP GBP GBP GBP USD RUR EURO Sr.37 28.74 557.12 (0.57 13.A.83 1.

List of Subsidiaries of Tata Motors European Technical Centre Plc that have been consolidated Miljobil Greenland AS List of Subsidiaries of Tata Hispano Motors Carrocera S.V.) Tata Technologies de Mexico.K. (formerly known as INCAT Solutions of Canada Inc.A. that have been consolidated Carrocera Hispano Maghreb. Jaguar Hispania SL Jaguar Deutschland GmbH Jaguar Belux N. LLC. USA Canada Mexico UK Germany France Thailand Singapore Norway Spain UK UK UK UK USA Spain Germany Belgium Austria UK Italy Jersey Ireland Australia UK Spain Germany Netherlands Belgium Italy Portugal Mexico China Japan South Korea Canada France South Africa South Africa Brazil UK UK UK UK UK UK USA Russia # The financial statements of subsidiaries whose reporting currency are other than INR are converted into Indian Rupees on the basis of appropriate exchange rates. Lda. SA de CV Jaguar Land Rover Auto Trade (Shanghai) Co. S.) Tata Technologies Europe Limited (formerly known as INCAT Limited) INCAT GmbH INCAT SAS Tata Technologies (Thailand) Limited (formerly known as INCAT (Thailand) Limited) TATA Technologies Pte Ltd. * Profit for the year is after share of minority interest and share of profit/(loss) in respect of investment in associate companies.V.) Tata Technologies Canada Inc.A. Jaguar Land Rover Austria GmbH Jaguar Cars Overseas Holdings Limited Jaguar Italia SpA Land Rover Group Limited Land Rover Ireland Limited Jaguar Land Rover Australia Pty Limited Land Rover Exports Limited Land Rover Espana SL Land Rover Deutschland GmbH Land Rover Nederland BV Land Rover Belux SA/NV Land Rover Italia SpA Jaguar Land Rover Portugal-Veiculos e Pecas. de C. de C. Singapore that have been consolidated JaguarLandRover Limited Jaguar Cars Limited Land Rover Jaguar Cars Exports Limited Jaguar Land Rover North America. Jaguar Land Rover Mexico. S. (formerly known as Integrated Systems Technologies de Mexico.V. Ltd Jaguar Land Rover Japan Limited Jaguar Land Rover Korea Company Limited Jaguar Land Rover Canada ULC Jaguar Land Rover France SAS Jaguar Land Rover (South Africa) (Pty) Ltd Jaguar Cars South Africa (Pty) Ltd Jaguar Land Rover Brazil LLC Daimler Transport Vehicles Limited S S Cars Limited The Lanchester Motor Company Limited The Daimler Motor Company Limited The Jaguar Collection Limited Land Rover Parts Limited Land Rover Parts NA LLC Jaguar Land Rover Russia LLC Country of Incorporation U. Morroco List of Subsidiaries of TML Holdings Pte Ltd. 51 .A.Notes: (A) 1 2 3 4 5 6 7 8 9 (B) 1 (C) 1 (D) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 List of Subsidiaries of Tata Technologies Limited that have been consolidated INCAT International Plc Ltd Tata Technologies Inc (formerly known as INCAT Systems Inc.

94 84.63 288.34 462.20 - 675.46 647. (Reversal) / Provision for diminution in value of investments (net) D.98 567.80 4139.54 177.46 * 1745.46 (325.33 8.72 - 14076.04 1081.82 582.77 5118.50 2791.50) 15.60 123.47 345.29 106.89 6.81) 132.70 26.05 (1.22 6885.16 6.94 1122.30 2227. Credit for Dividend Distribution Tax of Subsidiary Companies G.41 298.06) 30.01 0.33 9429.56 14076.48 (9.76 8869.93 .67 991.30 2370.94) 2873.58 5102.12) 1528.52 406.19 1555.94 290.53 14376.88 522.38 1348. Marked to Market Exchange loss on Forward contracts transferred to Hedging Reserve Account on adoption of principles of hedge accounting under AS30 [Note b(v)] 2 3 4 5 6 7 8 9 Total Proceeds from Rights issue of Ordinary shares and ‘A’ Ordinary shares Proceeds from issue of Global Depository Shares Proceeds from FCCN.10 1347.57 3726.35 2647.26 870.92 1913.09 5.36 61.26 4.19 * 85.13 8055.53 14376.41 2271.96) (2.57) 1855.25 12. Adjustment in General Reserve for difference in opening liability for Employee Benefits [Note b(v)] F.23 (132.69) 142.68 676.56 4705. Exchange gain (net) on Long term Foreign currency monetary items deferred consequent to amendment to AS-11 [Note b(iii)] H.79 (45.39 441.59 835.40 .30 .76 2145. 52 8869.35 2008-09 1001.58 3460.71 1794.82 490. In crores) 2007-08 2006-07 2005-06 2028. Net deferred tax charge E. TDDL and SCFL (2004-05 : spare parts division of TMISL) 2240.79 1001.05 589.LAST FIVE YEARS 2009-10 Sources of Funds 1 Funds generated from operations A.76 Application of Funds 10 Capital Expenditure (net) 11 Investments made (net of sales) 12 Increase in short term deposits with banks 13 (a) Increase in Working Capital (b) Increase in Finance receivables 14 Dividends (including tax thereon) 15 Arrears of preference dividend (including tax) pertaining to erstwhile Tata Finance Ltd.728.39 10.Sixty-fifth annual report 2009-10 Tata Motors Limited FUNDS FLOW .89 1.29 906.61 659.85 (Rs.51 (62.38 5102.82 371.34 4324.06 15.09 401.78 19.34 4324. 16 Deferred Tax Assets (net) taken over on amalgamation 17 Miscellaneous Expenditure (to the extent not written off or adjusted) and utilisation of Securities Premium Account [Note (a) below] Notes : (a) Utilisation of Securities Premium Account includes FCCN / CARS / Rights issue expenses and premium on redemption of Debentures (b) The Sources and Application of funds does not include (i) Provision for premium on redemption of CARS / FCCN (ii) Liability towards premium on redemption of NCD (iii) Exchange gain (net) and depreciation thereon adjusted from General Reserve to Fixed Assets relating to FY 2007-08 consequent to amendment to AS11 (iv) Exchange gain (net) adjusted from General Reserve to Foreign Currency Monetary Item Translation Difference Account relating to FY 2007-08 consequent to amendment to AS11 (v) Exchange loss (net) on forward contracts adjusted to General Reserve on adoption of principles of hedge accounting under AS30 (vi) Deferred Tax on account of item 1(E) and 1(H) * net of deferred tax (c) Figures for the previous years have been regrouped wherever necessary.95 2456. Warrants and Convertible Debentures converted into Ordinary Shares and premium thereon (a) Decrease in Working Capital (b) Decrease in Finance receivables Increase in Borrowings (net of repayments) Decrease in short term deposits with banks Investments sold (net of purchases and adjustment for diminution in value of investments) Effect of amalgamation of TFL.38 1072.15 2183.09 * 57. Depreciation (including Lease Equalisation) C.87 * 45.22 (27.10 3015.42 1075.90 830.508.08 1029.97 (3.94 1393.90 96. Profit after tax B.93) 1.19 * 284.56 292.

on a test basis. 117366W) N. of the profit of the Company for the year ended on that date.AUDITORS’ REPORT TO THE MEMBERS OF TATA MOTORS LIMITED 1. 53 . as well as evaluating the overall financial statement presentation. 1956. 1956. in our opinion and to the best of our information and according to the explanations given to us. the Balance Sheet. 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) (ii) in the case of the Balance Sheet. and 2. in our opinion. we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. May 27. (iii) in the case of the Cash Flow Statement. 2010. 3. the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account. 2010 taken on record by the Board of Directors. in our opinion. 2010. An audit also includes assessing the accounting principles used and the significant estimates made by the Management. 1956. 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act. 5. VENKATRAM Partner (Membership No.71387) Mumbai. On the basis of the written representations received from the Directors as on March 31. 2010 from being appointed as a director in terms of Section 274(1) (g) of the Companies Act. An audit includes examining. Our responsibility is to express an opinion on these financial statements based on our audit. both annexed thereto. the said accounts give the information required by the Companies Act. proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. Further to our comments in the Annexure referred to in paragraph 3 above. of the cash flows of the Company for the year ended on that date. We believe that our audit provides a reasonable basis for our opinion. We conducted our audit in accordance with the auditing standards generally accepted in India. the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date. the Balance Sheet. We have audited the attached Balance Sheet of TATA MOTORS LIMITED (“the Company”) as at March 31. none of the Directors is disqualified as on March 31. As required by the Companies (Auditor’s Report) Order. These financial statements are the responsibility of the Company’s Management. in the case of the Profit and Loss Account. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. we report as follows: (a) (b) (c) (d) (e) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. 2010. 4. evidence supporting the amounts and the disclosures in the financial statements. of the state of affairs of the Company as at March 31. For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act.

(ii) In respect of its fixed assets: (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. the prescribed accounts and records have been made and maintained. before the year-end or after the year-end. in our opinion. prima facie not prejudicial to the interests of the Company. the outstanding balances of such loans aggregated Rs.16. During the course of our audit. the stock of finished goods (other than a significant part of the spare parts held for sale) and work-in-progress in the Company’s custody have been physically verified by the Management as at the end of the financial year. in our opinion. (x) According to the information and explanations given to us in respect of statutory dues: (a) The Company has generally been regular in depositing with the appropriate authorities undisputed dues. has not affected the going concern status of the Company. income-tax. 352. according to the information and explanations given to us: (a) the Company has granted unsecured loans aggregating Rs. and (xiv) of paragraph 4 of the Companies (Auditors’ Report) Order. In our opinion. (c) The receipts of principal amounts have been as per stipulations however there have been delays in receipts of interests. cess and other material statutory dues applicable to it. (vi) In respect of contracts or arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act. and having regard to our comments in para (v) above.64 crores. and raw materials in the Company’s custody. we are informed that the Company has its own Life Cover Scheme. 1956. taken by the Company from companies. having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotations.58 crores from five parties during the year). granted by the Company to companies. employees’ state insurance. (f ) the rate of interest and other terms and conditions of such loans taken are. and in respect of stocks of stores and spares. the Management has taken reasonable steps for the recovery of the overdue interest amounts. (b) the rate of interest and other terms and conditions on such loans are. 1956 (including Rs.2. wealth tax. no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal. no material discrepancies were noticed on such verification. 296. the Central Government has not prescribed maintenance of cost records for any other products of the Company. however. including provident fund. (g) The principal amount is not due for repayment and the Company has been regular in payment of interest. 1956 and the Companies (Acceptance of Deposits) Rules. (c) In our opinion and according to the information and explanations given to us. the frequency of verification is reasonable. the Company has an adequate internal audit system commensurate with the size and the nature of its business. and consequently. (c) The fixed assets disposed off during the year. there exists an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and with regard to the sale of goods and services. excise duty. According to the information and explanations given to us. prima facie not prejudicial to the interest of the Company having regard to the market yields and the business relationship with the Company to whom loans have been granted.Sixty-fifth annual report 2009-10 Tata Motors Limited ANNEXURE TO THE AUDITORS’ REPORT (Referred to in paragraph 3 of our report of even date) The nature of the Company’s business activities during the year are such that clauses (xiii). the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time. (v) In our opinion and according to the information and explanations given to us. (viii) In our opinion. We have. To the best of our knowledge and according to the information and explanations given to us. 1956.64 crores from six parties covered in the Register maintained under Section 301 of the Companies Act. 1956 (including Rs. according to the information and explanations given to us: (e) the Company has taken loans aggregating Rs. 1956 and are of the opinion that prima facie. firms or other parties covered in the Register maintained under Section 301 of the Companies Act. According to the information and explanation given to us. there is a perpetual inventory system and a substantial portion of the stocks have been verified during the year.68 crores.16. With regard to the contribution under the Employees’ Deposit Linked Insurance Scheme.64 crores and the maximum amount outstanding during the year was Rs. certificates confirming stocks have been received in respect of a substantial portion of the stocks held during the year or at the yearend. service tax.17 crores granted during the year to two parties). (vii) In our opinion and according to the information and explanations given to us. investor education and protection fund. the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business. In respect of loans. the Company is maintaining proper records of inventory. 1976 (the Scheme). do not constitute a substantial part of the fixed assets of the Company and such disposal. (iv) In respect of loans. (b) Where each of such transaction is in excess of rupees five lakhs in respect of any party. In case of materials and spare parts held for sale lying with the third parties. provides for physical verification of all the fixed assets at reasonable intervals.11 crores to three parties covered in the register maintained under Section 301 of the Companies Act. firms or other parties covered in the Register under Section 301 of the Companies Act. customs duty. (b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which. in our opinion. we have not observed any major weakness in such internal control system. 1956. (ix) We have broadly reviewed the books of account relating to the manufacture of motor vehicles pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1)(d) of the Companies Act. in our opinion.94 crores and maximum amount outstanding during the year was Rs. At the year-end. secured or unsecured. (d) There are no overdue amounts in respect of principal outstanding. secured or unsecured. (b) In our opinion and according to the information and explanation given to us. At the year-end. an 54 (i) . The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company and have been properly dealt with in the books of account. the aforesaid spare parts held for sale. to the best of our knowledge and belief and according to the information and explanations given to us: (a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the register maintained under the said section have been so entered. sales tax. not made a detailed examination of the records with a view to determining whether they are accurate or complete. In respect of overdue interest amounts of more than rupees one lakh remaining outstanding as at the year-end. the Company has complied with the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act. in our opinion. 1975 with regard to the deposits accepted from the public. 2003 are not applicable to the Company. 244.109. the outstanding balance of such loans taken aggregated Rs. (iii) In respect of its inventory: (a) As explained to us.16.

2010.1997-98.52 126. the Company has not granted any loans and advances on the basis of security by way of pledge of shares. (xvi) In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company. 2003-04 to 2006-07 1988-89 to 1989-90.1997-98 and 2000-01 1987-88 to 1992-93.1988-89.03 64. wealth tax. 2010 for a period of more than six months from the date they became payable.000 debentures issued in month of March 2010. the Company has not given any guarantee for loans taken by others from banks or financial institutions.54 1985-86.000 debentures and in respect of 2. (xiii) Based on our examination of the records and the information and explanations given to us. we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same. during the period covered by our audit report.1997-98. investor education and protection fund.1991-92 to 1992-93.000 each. May 27. Accordingly. cess and other material statutory dues applicable to the Company that were in arrears as at March 31. which is awaited. 1956. wealth tax. Further. VENKATRAM Partner (Membership No.62 1993-94 to 1994-95. since the Central Government has till date not prescribed the amount of cess payable under Section 441A of the Companies Act. 1995-96.1990-91 to 1991-92. (c) Details of dues of income-tax. 117366W) N.92 0. 2010.application has been made seeking an extension of exemption from contribution to the Scheme. employees’ state insurance.88 crores have been used during the year for long-term investment.98 0. 1956. sales tax. (xvii) According to the information and explanations given to us.11 . 1993-94. Further the Company has explained that steps are being taken to augment long term funds. excise duty. the Company has issued 44.1996-97 to 2000-01.2008-09 to 2009-10 Sales Tax 1. (b) There were no undisputed amounts payable in respect of provident fund.00. customs duty. For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. the term loans have been applied for the purposes for which they were obtained.1995-96. we report that short term funds of Rs. (xii) In our opinion and according to the information and explanations given to us. 1998-99. the Company is in process of executing the Debenture Trust deed and creation of security. income-tax.12 3.1996-97. 2005-06 to 2006-07 Appellate Tribunal Commissioner (Appeals) Additional Commissioner High Court Appellate Tribunal Commissioner (Appeals) Joint Commissioner Deputy Commissioner Additional Commissioner 1984-85 to1986-87. The Company has created security in respect of 42. 1999-2000 to 2000-01. (xix) According to the information and explanations given to us.22 1997-98 Appellate Tribunal Income Tax 118. 2010 on account of any disputes are given below: Name of Nature of the Amount Period to which the Forum where the Statute Dues (Rs. (xviii) According to the information and explanations given to us. as at March 31. 2006-07to 2007-08 and 2009-10 2009-10 1983-84 to 1990-91.1991-92 to 1992-93. 2001-02 1997-98 to 2008-09 1979-80.000 debentures of Rs.1986-87.43 0. financial institutions and debenture holders. debentures and other securities. the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act. customs duty. 55 Sales Tax Laws Sales Tax 2.71387) Mumbai.6. (xiv) In our opinion and according to the information and explanations given to us.91 11.697. during the year covered by our audit report. 2002-03 to2005-06 1996-97. excise duty.1999-00 and 2002-03 to 2009-10 2003-04 . (xv) In our opinion and according to the information and explanations given to us. no fraud by the Company and no material fraud on the Company has been noticed or reported during the year. in crores) amount relates pending Income Tax Laws Income Tax 0.1993-94 to 1995-96. 2002-2003 to Commissioner 2004-05 and 2006-07 Central Excise Laws Excise Duty & Service Tax Excise Duty & Service Tax Excise Duty & Service Tax Sales Tax Laws Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax 172. service tax. the Company has not raised any money by public issue. the Company has not defaulted in the repayment of dues to banks. (xx) To the best of our knowledge and according to the information and explanations given to us.1999-2000 to 2001-02 Trade Tax Officer (xi) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year. service tax. 1995-1996 to 1996-97.10. the provisions of clause (xv) of Paragraph 4 of the Companies (Auditor’s Report) Order.20 235.84 1986-87. cess which have not been deposited as on March 31.1994-95. 1999-2000. 2003 are not applicable to the Company. Assistant Commissioner 1990-91.

Sixty-fifth annual report 2009-10
Tata Motors Limited

Balance Sheet as at March 31, 2010
Schedule SOURCES OF FUNDS 1. SHAREHOLDERS’ FUNDS (a) Share Capital (b) Reserves and Surplus 2. LOAN FUNDS (a) Secured (b) Unsecured FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET) [Note A(9), page 82] DEFERRED TAX LIABILITY (NET) [Note A(3)(a), page 77] TOTAL FUNDS EMPLOYED 5 65 18416.81 7212.92 11203.89 5232.15 6 66 16436.04 22336.90 161.69 0.11 2935.59 2391.92 1753.26 4457.10 11537.98 14609.16 2763.43 17372.59 11. NET CURRENT ASSETS [(9) LESS (10)] 12. MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) 13. TOTAL ASSETS (NET) 14. SIGNIFICANT ACCOUNTING POLICIES 15. NOTES TO BALANCE SHEET 13 72 (5834.61) 33100.02 14 73 76 13905.17 6259.90 7645.27 6946.89 14592.16 12968.13 0.11 2229.81 1205.52 1141.82 4962.99 9540.25 8597.97 2078.95 10676.92 (1136.67) 2.02 26425.64 1 2 3 4 Page 63 63 64 64 570.60 14394.87 14965.47 7742.60 8883.31 16625.91 3. 4. 5. 1508.64 33100.02 (Rs. in crores) As at March 31, 2009 514.05 11716.10 12230.15 5251.65 7913.91 13165.56 164.12 865.81 26425.64

APPLICATION OF FUNDS 6. FIXED ASSETS (a) Gross Block (b) Less - Depreciation / Amortisation (c) Net Block (d) Capital Work-in-Progress 7. 8. 9. INVESTMENTS FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET) [Note A(9), page 82] CURRENT ASSETS, LOANS AND ADVANCES (a) Interest accrued on investments (b) Inventories (c) Sundry Debtors (d) Cash and Bank Balances (e) Loans and Advances

7 8 9 10

70 70 70 71

10. CURRENT LIABILITIES AND PROVISIONS (a) Current Liabilities (b) Provisions

11 12

72 72

As per our report attached For DELOITTE HASKINS & SELLS Chartered Accountants N VENKATRAM Partner Mumbai, May 27, 2010 56 RATAN N TATA Chairman

RAVI KANT Vice-Chairman

For and on behalf of the Board J J IRANI CARL-PETER FORSTER Managing Director & Group CEO R GOPALAKRISHNAN P M TELANG N N WADIA Managing Director - India Operations S M PALIA C RAMAKRISHNAN R A MASHELKAR Chief Financial Officer N MUNJEE H K SETHNA S BHARGAVA Company Secretary V K JAIRATH Directors Mumbai, May 27, 2010

Profit and Loss Account for the year ended March 31, 2010
Schedule INCOME 1. SALE OF PRODUCTS AND OTHER INCOME FROM OPERATIONS LESS : EXCISE DUTY 2. DIVIDEND AND OTHER INCOME A (1) Page 59 38364.10 2771.05 35593.05 1853.45 37446.50 32155.31 (740.54) 31414.77 PROFIT BEFORE DEPRECIATION, INTEREST, EXCEPTIONAL ITEMS AND TAX 5. PRODUCT DEVELOPMENT EXPENDITURE 6. DEPRECIATION / AMORTISATION 5 7. INTEREST AND DISCOUNTING CHARGES [Note B(4), page 83] PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 8. EXCHANGE LOSS (NET) ON REVALUATION OF FOREIGN CURRENCY BORROWINGS, DEPOSITS AND LOANS GIVEN 9. LOSS ON REDEMPTION OF INVESTMENT IN PREFERENCE SHARES HELD IN A SUBSIDIARY COMPANY [Note 12, page 68] PROFIT BEFORE TAX 10. TAX EXPENSE [Note A(3)(c), page 77] PROFIT AFTER TAX 11. BALANCE BROUGHT FORWARD FROM PREVIOUS YEAR Add : Credit taken for Dividend Distribution Tax for previous year AMOUNT AVAILABLE FOR APPROPRIATION 12. APPROPRIATIONS (a) Proposed Dividend (b) Tax on Proposed Dividend (c) Debenture Redemption Reserve (d) General Reserve (e) Balance carried to Balance Sheet 13. EARNINGS PER SHARE [Note B (7), page 85] I. Ordinary Shares a) Basic b) Diluted II. ‘A’ Ordinary Shares a) Basic b) Diluted 14. SIGNIFICANT ACCOUNTING POLICIES 15. NOTES TO PROFIT AND LOSS ACCOUNT
As per our report attached to the Balance Sheet For DELOITTE HASKINS & SELLS Chartered Accountants N VENKATRAM Partner Mumbai, May 27, 2010 RATAN N TATA Chairman

(Rs. in crores) 2008-2009 28568.21 2938.48 25629.73 925.97 26555.70 24762.37 (885.08) 23877.29 2678.41 51.17 874.54 673.68 1079.02 (65.26) 1013.76 (12.50) 1001.26 1383.07 15.29 2399.62 311.61 34.09 267.80 100.13 1685.99 2399.62

A (2)

59

EXPENDITURE 3. MANUFACTURING AND OTHER EXPENSES 4. EXPENDITURE TRANSFERRED TO CAPITAL AND OTHER ACCOUNTS

B

60

65

6031.73 144.03 1033.87 1103.84 3749.99 (69.59) (850.86) 2829.54 (589.46) 2240.08 1685.99 3926.07 859.05 132.89 500.00 500.00 1934.13 3926.07

Rupees Rupees Rupees Rupees 73 14 to 18 83

42.37 38.99 42.87 39.49

22.70 20.83 23.20 21.33

RAVI KANT Vice-Chairman

For and on behalf of the Board J J IRANI CARL-PETER FORSTER Managing Director & Group CEO R GOPALAKRISHNAN P M TELANG N N WADIA Managing Director - India Operations S M PALIA C RAMAKRISHNAN R A MASHELKAR Chief Financial Officer N MUNJEE H K SETHNA S BHARGAVA Company Secretary V K JAIRATH Directors Mumbai, May 27, 2010 57

Sixty-fifth annual report 2009-10
Tata Motors Limited

Cash Flow Statement for the year ended March 31, 2010
2009-2010 A. Cash flow from Operating Activities Profit after tax Adjustments for: Depreciation / amortisation (including Lease Equalisation adjusted in income) Loss / (Profit)p on sale of assets (net) (including assets scrapped / written off ) Relocation expenditure, etc. Profit on sale of investments (net) Loss on redemption of investment in preference shares held in a subsidiary company Income from transfer of Technology Gain on buyback of Foreign Currency Convertible Notes (FCCN) and Convertible Alternative Reference Securities (CARS) Provision / (Reversal of provision) for diminution in value of investments (net) Impairment of loans to associates and subsidiaries Reversal of provision for inter corporate deposits (net) Wealth tax Tax expense Interest / Dividend (net) Exchange differences Employee Separation Cost Operating Profit before Working Capital changes Adjustments for: Trade and other receivables Inventories Trade and other payables Vehicle loans and hire purchase receivables Cash generated from operations Income taxes paid (net) Net Cash from Operating Activities B. Cash Flow from Investing Activities Purchase of fixed assets Sale of fixed assets Proceeds from transfer of Technology Loans to associates and subsidiaries Advance against investments in subsidiary companies and joint venture Investments in subsidiary companies Investments in associate companies Investments in joint venture Investments in Mutual Fund (made) / sold (net) Decrease in Investments in retained interests in securitisation transactions Sale of investments in subsidiary companies Sale of investments in associate companies Sale / redemption of investments - others Placement of Long Term Inter-corporate deposits Decrease in short term Inter-corporate deposits Deposits of Margin Money / Cash Collateral Realisation of Margin Money / Cash Collateral Fixed deposits with scheduled banks made Fixed deposits with scheduled banks realised Increase in restricted deposits with scheduled banks Interest received Preacquisition dividend received Dividend / Income on investments received Net Cash used in Investing Activities C. Cash Flow from Financing Activities Expenses on Foreign Currency Convertible Notes (FCCN) conversion Premium on redemption of FCCN (including tax) Brokerage and other expenses on Non-Convertible Debentures Proceeds from Rights issue of shares (net of issue expenses) Proceeds from issue of shares held in abeyance Proceeds from Global Depository Shares (GDS) issue Expenses incurred on issue of GDS and FCCN Proceeds from Fixed Deposits Repayment Fixed Deposits Proceeds from long term borrowings Repayment of long term borrowings (Decrease) / Increase in short term loans (net) Dividend paid (including Dividend tax) Interest paid [including discounting charges paid, Rs. 503.78 crores (2008-2009 Rs. 345.30 crores)] Net Cash from Financing Activities 2240.08 1029.36 38.40 67.17 (1801.71) 850.86 61.05 23.63 (0.16) 0.90 589.46 1054.48 199.09 2.02 2114.55 4354.63 (1601.82) (705.78) 3664.63 1357.03 1393.58 2750.61 7105.24 (519.21) 6586.03 (2330.38) 20.21 (107.90) (2.00) (10619.91) (130.00) (519.43) 50.43 1185.80 958.51 16.21 (524.41) 377.63 (412.20) 2.15 (7.08) 135.54 58.54 (11848.29) (0.03) (150.75) 0.05 1794.19 (126.72) 2039.11 (75.96) 13223.04 (7273.96) (2367.43) (344.90) (1368.15) 5348.49 86.23 668.74 (38.70) 716.27 1555.70 89.69 (Rs. in crores) 2008-2009 1001.26 870.05 (13.07) (518.56) (138.83) (50.74) (1.96) (5.97) 0.90 12.50 270.69 126.40 4.03 555.44 1556.70 (330.33) 192.02 (362.21) (500.52) 404.86 (95.66) 1461.04 (166.02) 1295.02 (4029.06) 17.76 103.03 (138.53) (385.52) (8046.76) (33.22) (117.95) 795.27 8.21 162.70 603.53 (265.00) 85.33 (140.88) 202.55 (0.16) (1.96) 136.94 0.18 458.42 (10585.12) (0.01) (0.05) (0.90) 4109.66 1232.47 6146.15 (3178.46) 1549.42 (642.41) (1111.17) 8104.70 (1185.40) 1864.68 (10.54) 668.74 8.52 -

Net Increase / (Decrease) in Cash and cash equivalents Cash and cash equivalents as at March 31, (Opening Balance) * # Less : Exchange fluctuation on FCCN / CARS proceeds kept out side India and on foreign currency bank balances Cash and cash equivalents as at March 31, (Closing Balance) * # Non-cash transactions: FCCN / CARS converted to ordinary shares [Refer note (A) 1(d), page 76] Loan to subsidiary converted to equity * Excludes Cash Collateral of Rs. 609.70 crores (as at March 31, 2009 Rs. 462.92 crores, as at March 31, 2008 Rs. 524.59 crores) # Excludes Fixed / restricted deposits with scheduled banks Rs. 427.29 crores (as at March 31, 2009 Rs. 10.16 crores, as at March 31, 2008 Rs. 8.04 crores) Previous year’s figures have been restated, wherever necessary, to conform to this year’s classification.

As per our report attached to the Balance Sheet For DELOITTE HASKINS & SELLS Chartered Accountants N VENKATRAM Partner Mumbai, May 27, 2010 58 RATAN N TATA Chairman

RAVI KANT Vice-Chairman

For and on behalf of the Board J J IRANI CARL-PETER FORSTER Managing Director & Group CEO R GOPALAKRISHNAN P M TELANG N N WADIA Managing Director - India Operations S M PALIA C RAMAKRISHNAN R A MASHELKAR Chief Financial Officer N MUNJEE H K SETHNA S BHARGAVA Company Secretary V K JAIRATH Directors Mumbai, May 27, 2010

21 689.27) (1.66 358.31 518.59) 208.28 1. 11.71 28568.11 28261.74 56.80 (5) (6) (7) (8) 59 .51 - 307.61 4.17 219.56 50.Schedules forming part of the Profit and Loss Account (Rs.61 1112.51 1853.45 400.17 0.88 crore (2008-09 Rs.14 2008-2009 (439.63 2.43 (3) 6.56 crores)] (ii) Gain on buyback of Foreign Currency Convertible Notes (FCCN) and Convertible Alternative Reference Securities (CARS) (iii) Income from Infrastructural Services provided in vendor park Includes : (i) Dividend from subsidiary companies [including tax deducted at source of Rs.20 1112.81 47.34 0.39 244.83 219.10 28017.97 2009-2010 Notes : (1) (2) Includes exchange loss (net) Includes : (i) (loss) / gain on securitisation of Loan contracts (net) (ii) interest income from Loan contracts (net) Includes : (i) Profit on sale of assets (net) [includes Capital Profits of Rs.34 0. 0.66 38144.21 2. long term) [Notes 7 and 8 below] 51.25 925. in crores) “A” [Item no. 1 and 2] 2009-2010 SALE OF PRODUCTS AND OTHER INCOME 1. page 88) (Note 1 below) (b) Income from Hire purchase / Loan contracts (Note 2 below) (c) Sales / Income from Operations Other operating income (Note 3 below) 2008-2009 37925.62 688. page 86] Includes profit on sale of shares in : (i) Tata AutoComp Systems Ltd (ii) Tata Steel Ltd (iii) Tata Teleservices Ltd (24.19 0.68 0.27 38364.63 crores)] (ii) Reversal of provision for diminution in value of investment Includes : (i) Reversal of provision for diminution in value of investment (ii) Tax deducted at source Includes profit on sale of investment in Tata Steel Ltd Includes profit on sale of controlling stake in a subsidiary company [Note C(iv).32) (85. Sale of products and other income from operations (a) Sale of Products / Services (Schedule 15.24) 304.57 (4) 7. Dividend and other income (a) Trade investments (long term) [Note 4 below] (b) Other investments (long term) [Note 5 below] (c) Other investments (current) (d) Profit on sale of current investments [Note 6 below] (e) Profit on sale of investments (net) (trade. 4.84 - 13.50 306. Nil (2008-09 Rs.04 113.

[Note B(1).06 304.95 12. port charges.31 245. page 61] (d) Repairs to plant.56 207.94 46.82 1551.95 879. etc.76 1733. transportation. 3] MANUFACTURING AND OTHER EXPENSES 1.53 1732.05 1227.87 1125.82 238. 3.68 810.87 1125.33 4778. wages and bonus (b) Contribution to provident and other funds (c) Workmen and staff welfare expenses [Note B(i).47 2141.29 546. machinery. spare parts and tools consumed (b) Freight.62 45.29 419.95) 2009-2010 4513.70 362.22 44.15 56.13 76.04 3855. page 61] 1444. 4. Expenses for manufacture. page 83] 2.03 1836.23 20392.14 321.45 (606. Excise Duty on change in Stock-in-trade Changes in Stock-in-trade and Work-in-progress : A (i) Opening Stock Work-in-progress 245.32 56. page 61] (ii) Stock-in-trade (ii) Stock-in-trade 60 . Purchase of products for sale etc.35 644.76 387.60 (k) Works operation and other expenses [Note B(iv). (c) Repairs to buildings [Note B(ii). administration and selling : (a) Stores.04 24762.03 6.92 1389. 7. page 84) (a) Salaries. etc.77 131. page 91) Processing charges Payments to and provisions for employees : (Refer Note B(5).43 479.86 1363.80 191. in crores) “B” [Item no.39 402.90 2008-2009 2180.29 (60.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Profit and Loss Account (Rs.11 44. page 61] (e) Power and fuel (f ) Rent (g) Rates and taxes (h) Insurance (i) (j) Publicity Incentive / Commission to dealers 460.13 5.86 29.55 16.54 184. Consumption of raw materials and components (Schedule 18.00 1067.82 B (i) Closing Stock Work-in-progress 342.95 879.60 1212.37 296.71 31.32 16187.63) 32155. [Note B(iii).

18 61 .49 3.08 (iii) Item 5 (d) : 139. in crores) “B” [Item no. exclude amounts charged to other revenue accounts Works operation and other expenses include : (1) Loss on assets scrapped / written off (2) Commission and Brokerage on sales (3) Provisions and write off for sundry debtors. vehicle loans and advances (net) (4) Lease rentals in respect of plant and machinery 45.24 5.Schedules forming part of the Profit and Loss Account (Rs.28 9.33 (ii) Item 5 (c) : 9.02 228.21 0. machinery.10 0.44 (iv) Item 5 (k) : 292.39 2008-2009 15.78 133. etc. 3] (contd.) 2009-2010 NOTES : (i) Item 4 (c) : Workmen and staff welfare expenses include provisions for other employee benefit schemes Repairs to buildings exclude amounts charged to other revenue accounts Repairs to plant.75 0.15 24.

(b) Profit (net) on sale of investments (c) Income from transfer of Technology (d) Gain on buyback of FCCN/CARS (ii) Write back of provision for diminution in value of investments (iii) Depreciation / Amortisation as per Section 350 of the Companies Act.90 crores (2008-09 Rs.27 0.32 2240.32 589.90 0.71) (1033.54) 3.05 850.30 0.88) (1801.08 (d) Limit on remuneration to whole-time directors 10% of net profit Remuneration to whole-time directors [includes commission payable to whole-time directors Rs.20* 0.64 3. 1956 (0.12 8.17 1900.) 2009-2010 MANAGERIAL REMUNERATION : 1.56) (518.46) (1589.54 11.46 4788.46 61.50 9.86 1033.18 9. The above is inclusive of : (a) Estimated expenditure on perquisites (b) Contribution to provident / superannuation funds (c) Commission to directors Directors’ sitting fees Remuneration to directors : (a) Profit after tax as per profit and loss account (b) Add: (i) Managerial remuneration (ii) Directors’ sitting fees (iii) Tax expense (iv) Provision for diminution in value of investments (v) Loss on redemption of investment in preference shares (vi) Depreciation / Amortisation as per books 2008-2009 12.08 12. in crores) “B” [Item no.43 (e) # * 62 .19) 1952.26 11.90 0.17 0. Managerial remuneration for directors (excluding provision for encashable leave and gratuity as separate actuarial valuation for whole-time directors is not available) # 2. 5.90 0. (c) Less: (i) Capital profit : (a) Profit (net) on sale of assets.10 crores)] Limit on commission to non-whole-time directors 1% of net profit Commission payable to non-whole-time directors Excludes retirement benefits / accruals thereof Commission payable to non-whole-time directors for the year 2008-09 was not paid as per the resolution passed at the Board Meeting held on June 26.11 2. 3] (contd. 2009.50 874.54 899. 195.84 0.29 1001.00 1. 1956 Net Profit as per Section 349 / 350 of the Companies Act.29 12. 5.52 4.29 7.24 31.74) (1.43 (4.87) (2836.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Profit and Loss Account (Rs. 4.90 19.84 0.21 311.56) (138.87 2548.83) (50.96) (874.

2009: 70.28 602.40 0. 26.000 shares) 20.52 8.44 4.000 Convertible Cumulative Preference shares of Rs.80 4037.36 4318.00 200. 2009: 20.00.71 4116.35 0.80 87. Nil (2008-09 Rs.59 5366.63.82 crores (2008-09 Rs.56 0.18 2269.655 shares) .76 500.00 3900.01 4037.05 55.72 149.51) 4617.13 1685.31 crore)] (h) Exchange difference on provision for premium on redemption of FCCN / Convertible Alternative Reference Securities (CARS) [net of tax Rs.659 shares) 6.00. 2009: 44.01 514.28 2.00. 0.03 crore Changes in Securities Premium Account (a) Premium on shares issued on conversion of Foreign Currency Convertible Notes (FCCN) and on shares issued which were held in abeyance out of Rights issue of shares (b) FCCN conversion expenses (c) Premium on issue of Global Depository Shares (GDS) (d) Premium on Rights issue of shares [Note A(1)(I)(e).05 570.67 0.40 1976.Ordinary shares 506.000 shares) 30.00 0.63 25. 1(a)] As at As at March 31. 10 each (as at March 31.52 208.22 2.80 25.37 4010.00.83 64.000 shares) 700.57 126.47 crores)] (j) Provision for premium on redemption of Non-Convertible Debentures / CARS / FCCN and withholding tax thereon [net of tax Rs.40 208. 0.Schedules forming part of the Balance Sheet (Rs. 100 each (as at March 31. in crores) “1” [Item No.00 3900.52 230.18 570. Nil)] (k) Others 2009-2010 Additions Deductions 2008-2009 Additions Deductions 1529.38 64.00.99 14394.00.00 3000.96 (i) Profit and Loss Account Notes:(i) (ii) The opening and closing balances of Securities Premium Account are net of calls in arrears of Rs.05 100.28 1102. 63 .76 0.00.82 140.05 55.00.54 0.11 1764.32.35 3617.41.89 Additions Deductions As at March 31.51) 4066.11 6070.51 (87. Less: Calls in arrears . 2010 6714.000 Ordinary shares of Rs.170 Ordinary shares of Rs.05 “2” [Item No.01 570.43 10030.73 358. page 76] Authorised: 70.98 18.Ordinary shares Share Forfeiture . 34.05 25.04 4066. 2010 2009 SHARE CAPITAL [Note (A) 1.87 11716. page 64] [Note (iii).11 1934.28 93.76.15 334.05 0. 10 each (as at March 31.81.51 crores (2008-09 Rs.00.05 55. 2009 RESERVES AND SURPLUS (a) Securities Premium Account (b) (c) (d) (e) (f ) (g) (h) Capital Redemption Reserve Debenture Redemption Reserve Amalgamation Reserve Special Reserve Revaluation Reserve Hedging Reserve Account General Reserve [Note (iv).59 178.31 1537.00.51 (87.01 0. Nil (2008-09 Rs. 10 each (as at March 31.05 24.13 4760. March 31.28 2.00 Issued and subscribed: 50.05 514.374 ‘A’ Ordinary shares of Rs.67 55. 1(b)] As at March 31.05 0.73 2269.31 2.07 (87.71 12460.85 2329. 10 each (as at March 31.05 0. 2009: 30. 56.00 700.15 602. 9. page 64] [Note (i) and (ii) below] 5366.00 200.60 449.00.00 3000.51) 555.10 3617.01 29.41. page 76] (e) GDS and FCCN issue Expenses (f ) Rights issue expenses (g) Brokerage.07 25.00.67 contd.24 crores)] (i) Reversal of provision for premium on conversion / redemption of FCCN / CARS [net of tax of Rs.75.98.55 0.000 ‘A’ Ordinary shares of Rs. stamp duty and other fees on Non-Convertible Debentures [net of tax Rs.15 0. 2009: 6.00 267.74 10030.44 0.18 514.

00 350. 2685 crores)] (d) Short term loans : (i) From Banks (ii) From Subsidiaries (iii) From Others (e) Other loans : (i) From Banks (ii) From Others As at March 31.05 245.05 840.63 7742. page 77] (vi) Secured Rated Redeemable Non-Convertible Debentures (b) Sales Tax Deferment Loan (c) From Banks : (i) Buyers line of credit (long term) [Notes 2(i)(c) and 2(iii). 2010 LOANS . 15.57 986.00 8.00 50.72 4.95% Non-Convertible Debentures (2020) [Note 2(i)(b). 2009 800.44 2008-2009 Additions Deductions 0.00 44.Secured [Note (A) 2. 1(b)] (contd.85 “3” [Item no.86 2333.82 5251.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet (Rs. 3. page 77] (ii) Loans.31 4522.00 605. in crores) “2” [Item No.72 100. page 77] (ii) 2% Non-Convertible Debentures (2013) [Note 2(i)(a). page 76 and Note 2(ii).12 191. page 76 and Note 2(ii).60 84. page 76 and Note 2(ii). page 76 and Note 2(ii).94 1215.44 0.13 100. Cash Credit.00 555. Overdrafts Accounts and Buyers line of credit (short term) [Note 2(i)(c).40 800.Unsecured (a) Foreign Currency Convertible Notes (FCCN) / Convertible Alternative Reference Securities (CARS) [Note (C) (i).91 13.98 149.39 * # Includes from Directors Includes repayable within one year 16.00 1250.87 142.) 2009-2010 Additions Deductions (iii) Change in Revaluation Reserve : Depreciation on revalued portion of assets taken over on amalgamation of a company 0.39 940.65 4161.00 8883. 2010 LOANS .26 3956.60 300.97 2722.44 (iv) Changes in General Reserve : (a) Difference in fair value of forward contracts on application of principles of Hedge Accounting under Accounting Standard (AS) 30 [net of tax of Rs. page 77] (v) 9. 2(b)] As at March 31.00 13. page 77] (iii) 2% Non-Convertible Debentures (2014) [Note 2(i)(a).50 crores)] (c) Amount paid (net) towards indemnity relating to business amalgamated in prior year (d) Amount transferred from Special Reserve (e) Amount transferred from Profit and Loss Account 55.00 200.05 4. page 76 and Note 2(ii). page 86] (b) Fixed Deposits * # : (i) From Public (ii) From Shareholders (c) Commercial papers [maximum balance outstanding during the year Rs.00 1800.13 6.05 500.53 crores)] (b) Impact on account of adoption of Notification amending AS 11 [net of tax of Rs. page 77] “4” [Item no.00 50. Nil (2008-09 Rs.00 619.00 7913. page 76] (a) Privately placed Non-Convertible Debentures : (i) 2% Non-Convertible Debentures (2011) [Note 2(i)(a).00 625. 1725 crores (2008-09 : Rs.53 291. 2(a)] As at March 31. 2009 As at March 31.57 64 . Nil (2008-09 Rs. page 77] (iv) 2% Non-Convertible Debentures (2016) [Note 2(i)(a).44 0.00 60.

Water System and Sanitation and Plant and Machinery include Gross block Rs.94 crores.15 2367.19 100.46 206.94 12.58 58.13 14. 2009 Rs.83 8317. 264.75 390.76 crores. 0.11 74. Rs. 58. Depreciation for the year and Accumulated Depreciation includes amortisation. 0.67 467.10 12230.10 53.55 crores (as at March 31.15 crores. 164. 3. 0. Fixtures and Office Appliances and Vehicles and Transport having Gross block of Rs.29 33. 2009 Rs.33 10. 6.39 34.73 crore and Rs. 8.65 23.15 6946. 2010 [Note (v) and (ix)] 353.06 0.82 252. 0.67 3.26 58. etc.26 5668. 2009 Rs. 2009 Additions / Adjustments [Note (iv)] Deductions / Adjustments Cost as at March 31. diminution in value of assets and write down of assets net of reversals.93 18. Additions / Adjustments include decapitalisation of exchange gain (net of loss on derivative contracts) of Rs.92 21.53 crores) is in process.83 109.83 1645.15 360. Consequent to the decision to relocate and construct a similar manufacturing facility at another location.22 1029. no adjustment to the carrying amount of the building is considered necessary based on the information available at the balance sheet date.28 395.10 58. Rs.86 4. Rs.04 14592.91 75.76 crores).34 crore).06 17. 1399.82 311.42 crore and Rs.08 87. 2009 Rs. 4.76 crores (as at March 31.90 Net Book Value as at March 31.35 7212.26 crores (as at March 31.97 22.89 0. (ii) (a) Buildings.09 17.23 13905.44 10643. Furniture. 4.Schedules forming part of the Balance Sheet (Rs in crores) "5" [Item no.25 31.71 crores for the purposes of manufacturing automobiles.28 31.93 5672.05 crores.37 4.92 41.81 407.08 crore.54 41. 308.83 13.92 33.14 11.17 519.80 52.11 1209. (c) depreciation of Rs.58 0.06 crores).89 16436.31 4.22 102. 457.65 25.78 2.22 667. 3.11 crore) respectively. 2010 includes building under construction of Rs.30 27. 23.76 crores) and Net Block Rs. 6] FIXED ASSETS Cost as at April 1.38 92.96 2.87 4. 4.54 4601.43 42.54 106.16 18.27 10643.51 5.67 150.96 211.67 12.55 179.34 93.68 110.48 crores (2008-09 capitalisation of exchange loss of Rs.31 2.631) being value of investments in shares of Co-operative Housing Societies. 0.81 13905. Nil and Rs.48 194.54 Accumulated depreciation / amortisation upto March 31.51 crores (2008-09 Rs.38 34.08 0. 0.62 0.97 252.00 55.93 crores and Rs. (b) lease equalisation of Rs. 318.06 89.80 1209.76 119.47 77.30 2140.86 0.67 77.28 407.17 10830.58 29.41 31. Rs.34 crore) in respect of expenditure incurred on capital assets. Nil (as at March 31. 2460.44 crore) on revalued portion of gross block transferred to Revaluation Reserve.51 117.11 1542.96 5.19 378.44 crore (2008-09 Rs 0. 150.06 63. 0. 2010 (a) (b) (c) (d) Land Buildings.11 1188.83 400. 2009 Net loss of Rs. Net loss of Rs. Fixtures and Office Appliances [Note (iii)] Technical Know-how Vehicles and Transport [Note (iii)] Plant taken on Lease [Note (viii)] IT Assets taken on lease Leased Premises Assets given on lease Software Product Development Cost 119. the management is in the process of evaluating several options.87 874.16 0.87 crores) on exchange gain adjusted in the carrying cost of assets in 2008-09 pertaining to 2007-08 has been transferred to general reserve in line with the notification issued by the Ministry of Corporate Affairs.45 29. Depreciation for the year includes loss of Rs.96 crores (2008-09 Rs.27 5232.13 crores and Rs.36 34. 0.98 530.98 1033. (c) exchange differences and net premiums on derivative contracts.81 2516.30 519. 0. Rs.94 28.07 100.96 71.76 119.51 68.44 3126.17 5.09 42.78 crores (as at March 31. 2010 Depreciation / Amortisation for the year 2009-2010 [Note (vi) and (ix)] 42.51 34. Capital Work-in-Progress includes : (a) Product Development Cost Rs.86 44. (b) advances for capital expenditure of Rs.22 52.19 11.93 3.49 crores) adjusted in lease rental income.35 11.86 54.62 47.54 crores).97 0.34 crore and Rs.80 87.96 2877.51 34.75 8. Rs.44 736. under all of which. Accumulated Depreciation includes : (a) an adjustment of Rs.11 119.15 67.76 crores.01 0. 0.08 4. [Note (i) and (ii)(a)] Leasehold Land [Note (ii)(b)] Plant & Machinery and Equipment [Note (ii)(a) and (iii)] Water System and Sanitation [Note (ii)(a)] Furniture.67 crores).62 11.47 14.15 106. Rs.82 29.66 6.32 crore respectively (as at March 31. 33.57 crore (as at March 31.97 crores) on assets held for disposal.42 11203. 2009 Rs.15 102.631 (as at March 31.51 34.19 25. 44. (iii) (iv) (v) (vi) (vii) (viii) The assets are under renewable secondary lease. 1. 2009 Rs.33 crores (as at March 31. 2009 Rs.66 736.70 2.60 4.24 crores) on assets transferred / sold / discarded during the year. 2009 Rs. (ix) (x) 65 . 6.13 crore (as at March 31.94 19. Rs.89 7645. (d) reversal of depreciation of Rs. 2009 Rs.97 407. 1. 3.92 6259.91 crores (as at March 31.51 110.85 crores.10 72.18 4974.10 42. Capital Work-in-progress as of March 31. 2009 Rs.97 259.17 6558. held for disposal. 315. Includes Plant & Machinery and Equipment.93 crores and Rs. 76.08 crore.59 31.64 1.02 crore and Rs.65 335.99 49.77 269.77 18416.28 31.32 154.15 50.98 897.21 45.25 29. ownership of which does not vest in the Company. 0.10 52. and Net block of Rs. 106. 4.77 747.16 (e) (f ) (g) (h) (i) (j) (k) (l) (m) (n) GRAND TOTAL (o) Capital Work-in-Progress [Notes (vii) and (x)] Notes : (i) Buildings include Rs.49 65.88 8.1.54 36. 4. 47. 0. 0. 8. (b) The registration of Leasehold Land of Rs.

24 719.00 68.05 15529.86 70.375 5.00. page 86] (2.58 2.001 2.624 (USD) (GBP) 100 100 1 3.40.67 90.383 350 66.40 - (KRW) (GBP) } { 12814.00 31. page 68] Tata Technologies Inc.696 shares acquired during the year) [Notes 9.395 3.61. 2009 99.000 shares redeemed during the year) 6% Tata Motors European Technical Centre Plc.000 shares redeemed during the year) (5) 7.10 29.73] (2. page 86] (formerly known as Hispano Carrocera.35.06.49.60 115.170 2.00. S A) (Subsidiary company from current year) Oriental Floratech (India) Pvt.34 0.00 86.600 24.15 75.68 1. [Note 13.000 86.615 10 10 Long Term Investments (at Cost) (A) Trade Investments (1) Fully paid Ordinary / Equity shares (Quoted) Automobile Corporation of Goa Ltd Tata Steel Ltd (39.25.00.000 16. (Singapore) [Rs.97 4.31 245.11 3.00 224.33.00.50 0. [Note (C)(v). page 68 and Note (C)(iv).03 239.00.67 269.17.900 600 100 2.000 22. (formerly known as INCAT Systems Inc.54 - 4701.00.50 0.54 79.50.50 17.700.00.999 13.00 16.00 21. 10 and 11.615 shares converted from Cumulative Compulsorily Convertible Preference Shares during the year) (2.75 77.00.60 9.00 224.120 6.00 76.82.11 (TK) 1077.50 99.624 7.000 98.63.00.10. 7] INVESTMENTS Number Face Value Per Unit Description I.629 39.000 shares acquired during the year) Tata Marcopolo Motors Ltd [Note 7.54 4520. 2.25% TML Holdings Pte Ltd.000 5.63. Ltd Fiat India Automobiles Ltd [Note 15.40.000 1(S$) 1000 1000 900 100 100 1000 100 10 1000 10 10 10 100 10 (4) 13.000 7.63.67 239.47 22.25 12541.900 85.48.00 36.75 77.00 68. Ltd (Bangladesh) Kulkarni Engineering Associates Ltd Tata Cummins Ltd Tata Sons Ltd Tata AutoComp Systems Ltd Haldia Petrochemicals Ltd Tata Hispano Motors Carrocera S.000 shares sold during the year) (Associate from current year) Concorde Motors (India) Ltd TAL Manufacturing Solutions Ltd HV Transmissions Ltd HV Axles Ltd Tata Motors Insurance Broking and Advisory Services Ltd Tata Daewoo Commercial Vehicle Co.000 3.780 1.57 2.778.20] TML Holdings Pte Ltd.70 13.00 45.260 shares acquired during the year) (Subsidiary company from current year) Fully Paid Ordinary / Equity Shares (Unquoted) in Others Tata Precision Industries Pte.5% Rallis India Ltd (50. 3.00.63 1250.00.27 0.57 1.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet (Rs. 27.000 33.85 0.000 30.A.16.63 1350.54.97.50 1434.41.018 1.00.97 13.77 75.) Tata Motors Finance Ltd (5.195 1.A.26.28 4543.63.01 82.14 0.68 1.882 shares classified as current investment during the year) Tata Chemicals Ltd (2) 75.16.28 Investments in Subsidiary Companies Fully Paid Ordinary / Equity Shares (Unquoted) Sheba Properties Ltd Tata Technologies Ltd Telco Construction Equipment Company Ltd [Note (C)(iv).00 5.41 0.91.25 21879.31 245.04 (3) 50. page 86] (formerly known as Hispano Carrocera.41 15.00 76. S A) (1.54 6151.56 0.00.46.14.54 6091.000 3.50.000 1000 10 10.56 0.00. page 68 and Note (C)(v).00.00 4574.00.00 68.03.000 debentures redeemed during the year) 8% Tata Projects Ltd Carried Forward As at March 31. in crores) “6”[Item no.89 6115. UK [Note 6.85 0. page 68] (2.00. 2010 As at March 31. page 68] (19.500 (6) 3000 Fully paid Cumulative Compulsorily Convertible Preference Shares (Quoted) in others 2% Tata Steel Ltd (2.900 shares received during the year on conversion of loans) Tata Motors (SA) (Proprietary) Ltd [Rs.24 999.91.600 9. Ltd (Singapore) [Note 14.000 shares acquired during the year) TML Distribution Company Ltd (11.00. page 68] Tata International Ltd Tata Services Ltd The Associated Building Company Ltd Tata Industries Ltd Tata Projects Ltd NITA Co.75 9.01 82. page 86] (Associate from current year) Fully paid Cumulative Redeemable Preference Shares (Unquoted) (a) in Subsidiaries 7% Concorde Motors (India) Ltd 6.41 15. page 68] Tata Hispano Motors Carrocera S.00.000 2.63 150.523 (THB) (ZAR) (SGD) (USD) (EUR) 100 10 10 10 10 10 10 5000 1 10 10 10 100 1 1 1 31. page 68] (5.24 369.69.203 25.24 339.10 119.00 30.50 29. (Singapore) [Note 12.51.83.060 18.34.000 shares acquired during the year) Telco Construction Equipment Company Ltd [Note 5.166.00 135.50 2.00 21.249 10 0. UK (b) in Others 7% Tata Sons Ltd 8% Tata AutoComp Systems Ltd 7.47 2238.63 150.80.27 0.50.693 shares converted to equity shares during the year) Non Convertible Debentures (Unquoted) Rushi Automobiles Ltd (6.65.000 12.00.97 4.00. Ltd (Korea) Tata Motors European Technical Centre Plc.03 10.00. page 68] (63.00 68.000 3.000 shares acquired during the year) Tata Motors (Thailand) Ltd [Note 8.67 90.14 0.39.62.70.47 22.000 1.40.50 17.00.50.70 225.23.11 3.78 66 .20.00 3.59.80.

00 0.968 5.95 3.00 25.93 0.Growth (B) 35.73.00 2.37 0.00 3.800 30.00 50.91. 2009 21879.40.273 10 10 1000 10 10 10 10 100.00 2.00 2. (B) 50.97 12541.136 3.00 0.882 shares classified as current investment during the year) (2.02 22336.01 110.Long Term Investments II.Growth Birla Sun Life Cash Plus .73 21805.Growth HDFC Cash Management Fund .71.42.58 4.02 74.22.Growth LIC MF Savings Plus Fund .575 3.810 2. 2010 As at March 31.00 70.02 54.00 529.Super Institutional .00 520.46.000 1000 (D) 100 100 0.others Advance against Investments TML Distribution Company Ltd Fiat India Automobiles Ltd Tata Motors (SA) (Proprietary) Ltd Tata Motors Insurance Broking and Advisory Services Ltd Tata Motors Finance Ltd Tata Marcopolo Motors Ltd Total .) Brought forward Other Investments Fully paid Equity Shares (Unquoted) NICCO Jubilee Park Ltd Less : Provision for Diminution in value of Long Term Investments Total .00% Uttar Pradesh 2011 Stock Investments in Preference Shares (Unquoted) 15.54 0.) Number Face Value Per Unit Description I.02 100.Growth Option Tata Liquid Super High Investment Plan .39.02 2.54.882 10 10 10 10 Investments in Equity shares (Quoted) Elcot Power Control Ltd Munis Forge Ltd Roofit Industries Ltd Tata Steel Ltd (2.Treasury PlanInstitutional Plan .44 67 . Current Investments .05 21880.02 1.00 150.37 0.14.83.474 4.997 4.) INVESTMENTS (contd.00 3.13 As at March 31.37 0. Retained interest in securitisation transactions (Unquoted) (Long term) .000 10 Long Term Investments (at Cost) (Contd.19 - 6.19 5.37 0.000 2.Investments 0. IV.68 12528.00.05 12541.47 (C) 170 1.69.00 50.02 0.50% Pennar Paterson Securities Ltd 15.93 525.02 100. 7] (contd.251 6.93 0.00.10.Savings Plan .78 0.Current Investments III.Schedules forming part of the Balance Sheet (Rs.00.00 100.50 385.52 12968.00 50.02 3.46.000 91.others (at Cost or Fair value whichever is lower) (A) Investments in Mutual Fund (Unquoted) Liquid/Liquid Plus Schemes SBI Premier Liquid Fund .Institutional (Growth) IDFC Cash Fund-Super Institutional Plan .88.29 0.63.000 shares sold during the year) Investments in Government Securities (Quoted) 12.51 Less : Provision for Diminution in value of Current Investments Total .Cumulative Preference Shares 1.00% Atcom Technologies Ltd .90 3.83 13.Plan C .15 6.40. in crores) “6”[Item no.Appreciation Reliance Liquid Fund .

79 crores. Further the Company has given an undertaking to Citibank NA for non-disposal of its shareholding in TMTL below 51% during the tenor of the loan. Singapore.53 As at March 31.97 21991.e. 12.73 crores as on Mar 31.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet (Rs.15 crores as on Mar 31. these shares are under restriction for sale.93 345. 2010). has redeemed preference shares of the face value of USD 195.e. 1600 crores and Euro 130 million (Rs.78% of the said amount i. Also the Company has given an undertaking to HDFC Bank that it will not dilute its stake below 51% during the currency of the loan.2 million. 2010). London for GBP 15 million (Rs. a wholly owned subsidiary of the Company. S. 102.84 558. Also the Company has given an undertaking to GE Commercial Distribution Finance Europe Ltd to retain ultimate 100% ownership of Jaguar Cars Ltd and Land Rover at all times during the tenor of the loan. during the tenor of the loan. THB 737. The Company has given a letter of comfort to GE Commercial Distribution Finance Europe Ltd upto GBP 170 million (Rs.29 12358. Ltd (TPI). Singapore. this letter of comfort will be prorata increased to reflect the increased stake in TMTL. The Company has given letter of comfort to certain banks and other lenders against credit facilities extended to Fiat India Automobiles Ltd for Rs. The Company has given a letter of comfort of Rs. 102. TML Holdings Pte Ltd.48 crores as on March 31. on occurrence of certain event. The Company has given a letter of comfort to Citibank NA towards the short term and long term loans aggregating THB 850 million (Rs. 90. 787. 476. Ltd (TES). S. for credit facilities given by them to Land Rover.32 (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) As per the shareholders agreement dated March 30. Also the Company has given an undertaking to Standard Chartered Bank. Consequently. 2010) given by Citibank NA to Tata Motors (Thailand) Ltd (TMTL). Thonburi and Citibank NA. The Company has also given an undertaking to Citibank NA for nondisposal of its shareholding in TPI. 2010). aggregating Euro 2 million (Rs. During the year.000 ICICI Money Multiplier Bond 1 1 100 10 Optel Telecommunications 1995 1995 200 10 Punjab Chemicals 1 1 68 . 2010) for revolving syndicated loan facility to Jaguar Cars Ltd and Land Rover.87 crores as on March 31. The Company has given a letter of comfort to Standard Chartered Bank. aggregating Euro 15 million (Rs.) INVESTMENTS (contd. The Company has given a letter of comfort along with a letter of irrevocable undertaking to State Bank of India. 235 crores given by HDFC Bank to Tata Marcopolo Motors Ltd (TMML).65 crores as on Mar 31.69 crores as on Mar 31. 1191.86 crores.517 1(M$) Tatab Industries Sdn. 2009 609.) NOTES : (1) Face Value per unit is in Rupees unless stated otherwise (2) (3) (4) (5) Book Value of quoted investments Book Value of unquoted investments Market Value of quoted investments As at March 31. 1193.57 crores as on March 31. The Company has also given an undertaking to Citibank NA for non-disposal of its shareholding in Hispano Carrocera.88 crores as on March 31. a wholly owned subsidiary of TPI aggregating SGD 13.68 crores as on Mar 31. As per the proposed arrangement to be entered between the Company. USD 240 million (Rs. 2010). Bank of Baroda and Bank of India totaling GBP 370 Million (Rs.A.63 million (Rs. London to retain 100% ownership of TMETC at all times during the tenor of the loan. Standard Chartered Bank and Bank of Baroda for GBP 175 Million (Rs. assignment or transfer for a period of 3 years from the date of the agreement except under certain circumstances as provided in the said agreement. UK (TMETC). 2010) against their guarantees to European Investment Bank for credit facilities availed by Land Rover. The Company has also given a letter of comfort to Banco de Valencia against bill discounting facility extended by the bank to Tata Hispano Motors Carrocera. Bhd. the Company has recognized a loss of Rs.85 million (Rs. 1078. 2010.12 crores as on March 31. 2010). 850. 2010) against loan extended by the bank to Tata Motors European Technical Centre Plc. Singapore. 2519. 2010 344. Consequent to the redemption. 2010). Rs. during the tenor of the loan.A.56.A. The Company has also given a Letter of Comfort to State Bank of India. 44.20 crores as on Mar 31. Singapore and Tata Engineering Services Pte. The letter of comfort is restricted to 86.29 crores as on March 31. 117.81% in TMTL. The Company has given a letter of comfort to Citibank NA against working capital loans extended by the bank to Tata Hispano Motors Carrocera.1 million at a discount of USD 189. in crores) “6”[Item no. Malaysia 1 1 100 10 American Express Services Ltd 1 1 4 25. 2010). 1157. The Letter of Comfort is restricted to 50% of the value of credit facilities extended i. between Hitachi Construction Machinery Co. 120 crores to HDFC Bank against the short term and long term loans aggregating Rs. Trade Investments also include : Number Face Description Value Per Unit Rupees Rupees Rupees 5. The Company has given a letter of comfort to Citibank NA against credit facilities provided by the bank to Tata Precision Industries Pte.000 10 Metal Scrap Trade Corporation Ltd 25000 25000 50 5 Jamshedpur Co-operative Stores Ltd 250 250 16. the Company may have to purchase Thonburi’s stake of 8. S. 2010) respectively. GBP 70 million (Rs. 7] (contd. Ltd and the Company.

00 1385.75.96.14.Institutional Daily Dividend Prudential ICICI Liquid Plan .98.Premium Plus Plan .53 28.Growth UTI Money Market Fund .16.98 92.Daily .00 69 .00 30.00 30.00 70.63.IP Premium .00 70.00 515.83.80 117.565 6.00.) INVESTMENTS (contd.00 5.38 466.Institutional Plus .14.90 201.76.Daily Dividend UTI Liquid Cash Plan Institutional .58.Growth ICICI Prudential Flexible Income Plan Dividend .558 Face value 37.Dividend Reinvestment LIC Liquid Fund .00 85.33.Daily Dividend Reliance Liquid Fund .00 135.624 15.621 44.41 154.49 83.) (17) Current Investments acquired and sold during the year : Name DSP Blackrock Liquidity Fund .00 228.552 34.Institutional Plan .Growth ICICI Prudential Liquid Institutional Plan .00 125.61.34.Super Institutional Daily Dividend Birla Cash Plus .466 17.05.Growth ICICI Prudential Liquid Super Institutional Plan .21 165. in crores) “6”[Item no.523 46.75.00 35.862 8.877 6.87.21.25.86 53.75.98.Saving Plus Daily Dividend IDFC Cash Fund .88 858.00 70.342 4. of Units 3.36 69.453 4.78 69.Liquid Growth SBI MF Saving Plan Dividend Daily Dividend Kotak Liquid Institutional Daily Dividend Reinvestment HDFC Cash Management Fund Saving Plan Daily Dividend Reinvestment Prudential ICICI Liquid Plan .48 26.Treasury Plan .00 260.783 74.94.95 48.Growth No.Growth Birla Cash Plus IP .68 Purchase Cost 50.Dividend Plan LIC MF .874 11.08 30.89 4.956 20.Institutional Option .092 3.01 130.88.966 5.861 9.41 31.99.306 28.432 2.766 5.00 220.Growth IDFC Cash Fund .00 90.80.00 50.Super IP .46.80.79.18.00.81 88.20.08.Super Institutional Plan C .00 50.39 99.Daily Dividend Reinvestment HDFC Liquid Fund .Reinvestment Dividend Kotak Liquid (Institutional Premium) .Daily Dividend LIC MF .Daily Dividend Reinvestment Birla Cash Plus IP Premium .986 8.02.67.98 74.48.848 85.Daily Dividend Tata Liquid Super High Investment Fund .02 3.00 44.39.00 5.19.79.00 100.00 100.Growth UTI Liquid Cash Plan Institutional .927 3.504 9.00 225. 7] (contd.012 16.82.00 570.Daily Dividend UTI Liquid Cash Plan .37.14 170.52 514.Schedule forming part of the Balance Sheet (Rs.

(d) and (e) above are valued at lower of cost and net realisable value.In foreign currencies . 2009 98.41 2229.12 2935.95 879.48 94.70 1753.73 462.18 1078.94 70 .92 1389.72 1226.47 133. 2010 INVENTORIES (as valued and certified by the Management) (a) Stores and spare parts (at or below cost) (b) Consumable tools (at cost) (c) Raw materials and components (d) Work-in-progress (e) Stock-in-trade (f ) Goods-in-transit (at cost) 95.90 604.Remittances in transit 55. 2009 2.70 21.48 94.56 2329.73 40.80 156.82 124.26 # Includes : .07 941.87 51. 2009 As at March 31.40 609.52 “9” [Item no.66 239.92 126.44 2486. 9(d)] As at March 31.53 207.81 62.56 2391. “8” [Item no.92 1141.34 As at March 31.01 887.80 21.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet (Rs. in crores) “7” [Item no.59 Note : Items (c).76 13.25 342. 2010 CASH AND BANK BALANCES (a) Cash on hand (b) Current Accounts with Scheduled Banks # (c) Deposits with Scheduled Banks (d) Margin Money / Cash Collateral with Scheduled Banks 7. 9(c)] As at March 31.80 245.71 12.22 186. 9 (b)] As at March 31.18 1205.26 531. 2010 SUNDRY DEBTORS (a) Over six months : (unsecured) Considered good Considered doubtful (b) Others (unsecured) Considered good Less : Provision for doubtful debts As at March 31.Cheques on hand .44 635.

etc.10 crore (as at March 31.00 220.31 1313.82 296.62 8. Port Trust. in crores) “10” [Item no.10 2. 2009 Rs.69 795. 33.28 106.95 148.96 106.82 134.47 2311.44 5.A.09 4962. page 78]]* Considered good Considered doubtful Less: Provision for doubtful loans # Includes Rs.50 194. 2009 Rs.00 5. (Subsidiary company from current year) Includes given to subsidiaries : (i) Tata Hispano Motors Carrocera S.51 9.68 32. (Subsidiary company from current year) (ii) Tata Motors (Thailand) Ltd (iii) Tata Motors European Technical Centre Plc.98 crores (as at March 31.72 crores )] (Note 5 below) (e) Deposits with government.00 10. Dues from subsidiary companies : (i) HV Axles Ltd (ii) HV Transmissions Ltd (iii) Telco Construction Equipment Company Ltd (Associate from current year) (iv) Tata Daewoo Commercial Vehicle Company Ltd .32 0.00 326.68 20. 2009 LOANS AND ADVANCES A) Secured Vehicle loans [Note 1 below and [Note A (4).00 731. 2009 Rs. contractors.37 304. 2009 Rs.08 69.86 4.19 crores (as at March 31.80 622.90 B) 1349. public bodies and others : (i) Balances with Customs.00 10.73 60.11 63.91 1.44 9.10 0.56 581.15 69.48 0.13 1.27 76.50 287.15 0.56 0.96 6.88 crores) towards Securitised Receivables Unsecured .99 Notes: (1) (2) (3) (4) Loans are secured against hypothecation of vehicles.50 30. (v) Tata Marcopolo Motors Ltd (vi) Tata Motors (Thailand) Ltd (vii) Tata Technologies Ltd (viii) TML Distribution Company Ltd (ix) TML Holdings Pte.10 crore)] (Note 6 below) * (f ) (g) Prepaid expenses Income tax refundable (net of provision) (Note 7 below) 613. 2010 As at March 31.77 5.49 174.06 71 (5) 147. employees and others. Include : Loans and advances due from Directors and Officers. 9.49 167.90 304. Maximum during the year Net of advances considered doubtful which have been provided for. rent deposits and other amount due (Notes 2 and 3 below) (b) Dues from subsidiary companies (Note 4 below) (c) Interim dividend declared by subsidiary companies (d) Loans and inter-corporate deposits [net of provision of Rs.00 6.78 4457. 9(e)] As at March 31. 0.A.15 1.47 2006.88 crores (as at March 31. Ltd.35 917.01 152.17 36.80 (6) (7) . 181. Excise.32 304.79 2956. 368.46 2.00 444.88 57.73 6.35 613.13 3843. (ii) Others [net of provision of Rs.considered good (a) Claims / incentives recoverable.32 2006.42 16. 0.95 34.67 304.24 106.50 20.20 13. Singapore (x) TAL Manufacturing Solutions Ltd (xi) Tata Hispano Motors Carrocera S.Schedules forming part of the Balance Sheet (Rs.10 881.59 31. advances / loans to suppliers.11 0. 185.59 crores) on account of overdue Securitised Receivables # Includes Rs. UK (iv) HV Transmissions Ltd (v) Concorde Motors (India) Ltd (vi) Tata Marcopolo Motors Ltd (vii) TAL Manufacturing Solutions Ltd Includes deposits given as collateral security to subsidiary : (i) Tata Motors Finance Ltd Includes MAT credit entitlement 0. 350.

Small and Medium Enterprises [Note 8.82 329.90 826.01 0.27 0. 2009 311. 2010 CURRENT LIABILITIES (a) Acceptances (b) Sundry creditors (i) Micro.70 14609. 2009 3859. 10(a)] As at March 31. page 77] (e) Liability towards Investors Education and Protection Fund under Section 205C of the Companies Act. 10(b)] PROVISIONS (a) Proposed dividend (b) Provision for tax on dividend (c) Provision for Taxation (net of payments) (d) Provision for retirement and other employee benefit schemes [Note B (5).140) (iii) Unclaimed matured deposits (iv) Unclaimed matured debentures (v) Unclaimed interest on deposits and debentures (f ) Interest / commitment charges accrued on loans but not due * Includes payable to subsidiary companies : Tata Technologies Ltd Tata Daewoo Commercial Vehicle Co.37 50.15 12.40 1745.02 2.09 201. 2010 MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) Employee Separation Cost As at March 31.03 43.89 199. page 84] (e) Other Provisions [Note B (6). page 82] (ii) Others* (c) Advance and progress payments (d) Liability towards premium on redemption of Non-convertible Debentures [Note 2(ii). 2009 - 2.69 302.02 72 .140 (as at March 31.16 0.95 “12” [Item no.70 5162.30 1229.14 152.13 0. 2009 Rs.26 2078.82 23.89 1241.43 “13” [Item no. page 85] 859.38 34.87 4358.21 42.05 132.55 As at March 31. 1.02 1. Ltd Tata Motors European Technical Centre Plc TAL Manufacturing Solutions Ltd Tata Motors Finance Ltd 6428.09 233.14 8597.25 0.97 13.58 177. 1956 not due (i) Unpaid dividends (ii) Application money pending refund Rs.47 - 10. 2010 10.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet (Rs.61 34.58 As at March 31.95 0.79 As at March 31.98 164.25 0. 1. in crores) “11” [Item no.78 2763. 12] As at March 31.

As per the assessment conducted by the Company at March 31. when the products are delivered to the dealer / customer or when delivered to the carrier for export sales. Where it is not possible to estimate the recoverable amount of individual asset. (ii) The product development cost incurred on new vehicle platform. 1956. Revenue Recognition The Company recognises revenue on the sale of products. net of discounts. 1975 – on Written Down Value basis at rates specified in Schedule XIV to the Companies Act. Revenues are recognised when collectibility of the resulting receivables is reasonably assured. 2010. that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. (iv) Software not exceeding Rs.f. Sales include income from services. transmission and new products are recognised as fixed assets. Capital work-in-progress includes capital advances.67% (SLM) Laptops – at 23. Interest income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exists. Depreciation and Amortisation (i) Depreciation is provided on straight line method (SLM). the Company assesses whether there is any indication that the fixed assets have suffered an impairment loss. Dividend from investments is recognized when the right to receive the payment is established and when no significant uncertainty as to measurability or collectability exists. If any such indication exists. Revisions to accounting estimates are recognised in the year in which the estimate is revised and future years affected.000 and product development costs relating to minor product enhancements. Actual results may differ from these estimates. Fixed Assets (i) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation / amortization. (ii) Product development cost are amortised over a period of 36 months to 120 months or on the basis of actual production to planned production volume over such period. Accounting Standards notified under Section 211 (3C) of the Companies Act. labour cost and directly attributable costs for self constructed assets and other direct costs incurred upto the date the asset is ready for its intended use. Assets taken on lease are amortised over the period of lease. April 1. Estimates and underlying assumptions are reviewed on an ongoing basis. at the rates and in the manner prescribed in Schedule XIV to the Companies Act. based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings. Sale of products is presented gross of excise duty where applicable. the Company has committed technical.000 is amortised over a period of sixty months or on the basis of estimated useful life whichever is lower. there were no indications that the fixed assets have suffered an impairment loss. (iii) Cost includes purchase price. when feasibility has been established. taxes and duties.Schedules forming part of the Balance Sheet and Profit and Loss Account Significant Accounting Policies (a) Basis of preparation The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles. engines. and net of other indirect taxes. (iv) Depreciation is not recorded on capital work-in-progress until construction and installation are complete and asset is ready for its intended use. facelifts and upgrades are charged off to the Profit and Loss Account as and when incurred. which is when risks and rewards of ownership pass to the dealer / customer. (b) (c) (d) (e) (f ) 73 . Sales include export and other recurring and non-recurring incentives from the Government at the national and state levels. financial and other resources to complete the development and it is probable that asset will generate probable future benefits. The cost of acquisition is further adjusted for exchange differences relating to long term foreign currency borrowings attributable to the acquisition of depreciable asset w. 25. (iii) In respect of assets whose useful life has been revised. the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.75% (SLM) Assets acquired prior to April 1.e. if any. the unamortised depreciable amount has been charged over the revised remaining useful life. Borrowing cost incurred for qualifying assets is capitalised up to the date the asset is ready for intended use. 25. transfer of technology relating to automotive products and exchange fluctuations relating to export receivables. 1956 except in the case of : Leasehold Land – amortised over the period of the lease Technical Know-how – at 16. Use of estimates The preparation of financial statements requires management to make judgments. 2007. estimates and assumptions. 1956 and the relevant provisions thereof. Impairment At each balance sheet date. the recoverable amount of the asset is estimated in order to determine the extent of the impairment.75% (SLM) Cars – at 23. if no specific borrowings have been incurred for the asset. Software in excess of Rs.

are allocated to work-in-progress and stock-in-trade determined on full absorption cost basis. as applicable. Amounts accumulated in Hedging Reserve Account are reclassified to profit and loss in the same periods during which the forecasted transaction affects profit and loss. (h) Transactions in Foreign Currencies and Accounting of Derivatives (i) Exchange differences Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.Sixty-fifth annual report 2009-10 Tata Motors Limited Significant Accounting Policies . The timing of outflows will vary as and when warranty claim will arise . (1) Exchange differences arising on settlement of transactions and translation of monetary items other than those covered by (2) below are recognized as income or expense in the year in which they arise. In respect of loan contracts that are in arrears for more than 6 months but not more than 11 months. allowance is provided to the extent of 10% of the outstanding and amount due but unpaid. Payments under operating leases are recognised in the Profit and Loss Account on a straight-line basis over the term of the lease. Foreign currency monetary assets and liabilities are translated at year end exchange rates. whichever is earlier. (ii) Operating Lease Leases other than finance lease.Other differences are accumulated in Foreign Currency Monetary Item Translation Difference Account. the Company designates such forward contracts in a cash flow hedging relationship by applying the hedge accounting principles set out in Accounting Standard 30.Financial Instruments: Recognition and Measurement. any cumulative gain or loss on the hedging instrument recognised in Hedging Reserve Account is retained there until the forecasted transaction occurs. With effect from April 1. terminated. net of applicable deferred income taxes and the ineffective portion is recognised immediately in the Profit and Loss Account. to be amortized over the period. Cost. and ending on March 31. For forecasted transactions. 2011 or the date of its maturity.being typically upto three years. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability. 2007 or date of inception of such item. beginning April 1. (j) Income on Vehicle Loan / Hire-Purchase Income / Finance Income from Lease Interest income from hire purchase and loan contracts and finance income in respect of vehicles are accounted for by using the Internal Rate of Return method. including variable and fixed overheads. or no longer qualifies for hedge accounting. Changes in the fair value of these forward contracts that are designated and effective as hedges of future cash flows are recognized directly in Hedging Reserve Account under Reserves and Surplus. to the extent of an amount equivalent to the outstanding principal and amounts due but unpaid. The Company provides an allowance for hire purchase and loan receivables that are in arrears for more than 11 months. Consequently. Hedge accounting is discontinued when the hedging instrument expires or is sold.) (g) Leases (i) Finance Lease Assets acquired under finance leases are recognised at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments.Differences relating to borrowings attributable to the acquisition of the depreciable capital asset are added to / deducted from the cost of such capital assets. Foreign currency options and other derivatives are stated at fair value as at the year end with changes in fair value recognized in the Profit and Loss Account. are operating leases. If the forecasted transaction is no longer expected to occur. (k) Inventories Inventories are valued at the lower of cost and net realisable value. 2008. . These estimates are established using historical information on the nature. a constant rate of return on the net outstanding amount is accrued over the period of contract.(contd. 74 . (2) Exchange differences relating to long term foreign currency monetary assets / liabilities are accounted for with effect from April 1. (i) Product Warranty Expenses The estimated liability for product warranties is recorded when products are sold. (iii) Premium or discount on forward contracts other than those covered in (ii) above is amortised over the life of such contracts and is recognised as income or expense. (ii) Hedge Accounting The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to highly probable forecast transactions. considering probable inherent loss including estimated realisation based on past performance trends. Assets given under finance leases are recognised as receivables at an amount equal to the net investment in the lease and the finance income is based on a constant rate of return on the outstanding net investment. 2007 in the following manner: . the net cumulative gain or loss recognised in Hedging Reserve Account is immediately transferred to the Profit and Loss Account. frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. and the leased assets are not recognised on the Company’s balance sheet. Net realisable value is estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses. or exercised. Lease payments are apportioned between the finance charge and the outstanding liability. Cost of raw materials and consumables are ascertained on a moving weighted average / monthly moving weighted average basis. These forward contracts are stated at fair value at each reporting date. Exchange differences considered as borrowing cost are capitalized to the extent these relate to the acquisition / construction of qualifying assets and the balance amount is recognized in the Profit & Loss Account.

either as a result of an injury or as certified by the Company’s Medical Board. as specified in the Companies (Accounting Standards) Rules. Vesting occurs upon completion of five years of service. based on tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date. on medical grounds or due to permanent disablement are also covered under the scheme. (iii) Bhavishya Kalyan Yojana (BKY) Bhavishya Kalyan Yojana is an unfunded defined benefit plan. (o) Redemption premium / discount on Foreign Currency Convertible Notes (FCCN) / Convertible Alternative Reference Securities (CARS) / Non Convertible Debentures (NCD) Premium payable on redemption of FCCN / CARS / NCD as per the terms of issue. 2003. Discount on redemption of FCCN. The contributions as specified under the law are paid to the provident fund and pension fund set up as irrevocable trust by the Company or to respective Regional Provident Fund Commissioner and the Central Provident Fund under the State Pension scheme.(contd. payable upto the date of normal superannuation had the employee been in service. whichever is higher. The monthly payment to dependents of the deceased / disabled employee under the plan equals 50% of the salary drawn at the time of death or accident or a specified amount. if any. The Company accounts for the liability for gratuity benefits payable in future based on an independent actuarial valuation. With effect from April 1. Employees separated from the Company as part of Early Separation Scheme. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the government specified minimum rates of return or pension and recognises such contributions and shortfall. periods after retirement and types of benefits. being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. (iv) Post-retirement Medicare Scheme Under this scheme. employees get medical benefits subject to certain limits of amount. 2003. in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary (currently 12% of employees’ salary). Current tax includes Fringe benefit tax. The Company accounts for the liability for superannuation benefits payable in future under the plan based on an independent actuarial valuation. to an eligible employee at the time of death or permanent disablement. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn. The Company has no further obligation beyond this contribution. Further. is provided fully in the year of issue by adjusting against the Securities Premium Account (SPA). as an expense in the year incurred. The liability for post-retirement medical scheme is based on an independent actuarial valuation. there is no reportable secondary segment i. depending on their grade and location at the time of retirement. death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. a defined benefit plan and a defined contribution plan. will be recognised on redemption. Fair value of investments in mutual funds are determined on a portfolio basis. Any change in the premium payable. The Company makes annual contributions to gratuity fund established as trust. if any. a defined benefit retirement plan covering eligible employees. The Company recognizes such contributions as an expense when incurred. if any. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual certainty that there will be sufficient future taxable income available to realise such losses. (ii) Superannuation The Company has two superannuation plans. These. An eligible employee on April 1. applicable upto year ending March 31. 2006. Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when asset is realised or the liability is settled. 2009. The monthly pension benefits after retirement range from 0. Current investments are stated at lower of cost and fair value. The Company contributes up to 15% of the eligible employees’ salary to the trust every year.Significant Accounting Policies . Current tax is net of credit for entitlement for Minimum Alternative tax. (v) Provident fund The eligible employees of the Company are entitled to receive benefits under the provident fund. this plan was amended and benefits earned by covered employees have been protected as at March 31. (p) Business Segments The Company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles including financing of the vehicles sold by the Company. Geographical Segment.e. The Company maintains a separate irrevocable trust for employees covered and entitled to benefits. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act. in the context of Accounting Standard 17 on Segment Reporting. The benefits of the plan include pension in certain case. The employees are entitled to accumulate leave subject to certain limits. 1961. (n) Income Tax Expenses Income tax expenses comprises current and deferred taxes. The liability is provided based on the number of days of unutilised leave at each balance sheet date on the basis of an independent actuarial valuation. while in service. The Company accounts for the liability for BKY benefits payable in future based on an independent actuarial valuation. consequent to conversion or exchange fluctuations is adjusted to the SPA. 1996 could elect to be a member of either plan. 75 . are considered to constitute one single primary segment. (m) Investments Long term investments are stated at cost less other than temporary diminution in value. a defined contribution plan. The plan provides for a lump sum payment to vested employees at retirement.) (l) Employee Benefits (i) Gratuity The Company has an obligation towards gratuity. (vi) Compensated absences The Company provides for the encashment of leave or leave with pay subject to certain rules. Deferred tax is recognised. Employees covered by this plan are prospectively entitled to benefits computed on a basis that ensures that the annual cost of providing the pension benefits would not exceed 15% of salary. on timing differences.75% to 2% of the annual basic salary for each year of service. for future encashment.

622 (as at March 31.509) ‘A’ Ordinary Shares are subject matter of various suits filed in the courts / forums by third parties for which final order is awaited and hence kept in abeyance.98. 2009 : Nil) Ordinary Shares issued against 2.590) Notes.42. 2009 2. 2009 : 1. freehold and leasehold. 2. (ii) 0% FCCN due 2009 74.940 (as at March 31.55.790 (as at March 31. 2009: 1.83. The balance 2.760 Ordinary Shares issued as fully paid up Bonus Shares by utilising Securities Premium Account.228 (as at March 31.152 (as at March 31.16. 2% Coupon. II. Pimpri.867 (as at March 31.59. Listed. Secured. Details are as follows: (i) 1% FCCN due 2008 1.095 (as at March 31. contribution for Capital Expenditure Account and General Reserve.410 notes have been redeemed during the year 2009-10. 76 .000 Ordinary Shares allotted to the Shareholders of erstwhile Investa Machine Tools and Engineering Company Limited in terms of the Scheme of Amalgamation sanctioned by the Bombay High Court in the financial year 1966-67. The Company has issued 2. 2009 : Nil) Notes. Debenture Trustee and first ranking parri passu charge in favour of State Bank of India as Security trustee on behalf of the Guarantors.083 Ordinary Shares issued to Financial Institutions and holders of convertible debentures / bonds on conversion of term loans / debentures / bonds. 15] (A) 1 Notes to Balance Sheet I. Premium Redemption Non-Convertible Debentures are secured by a second charge in favour of Vijaya Bank . Capital Reserve.04. 2009 2.49. 7.510 Ordinary Shares allotted to the Shareholders of the erstwhile Central Bank of India in terms of the Scheme of Amalgamation in the financial year 1970-71.76.29.88.534 (as at March 31. constructions and immovable and movable properties situated at Chinchwad.867) Ordinary Shares issued against 97.76.54 per GDS.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet and Profit and Loss Account “14” [Item no.50. 11.823 Ordinary Shares issued to the Shareholders of the erstwhile Noduron Founders Maharashtra Limited in terms of the merger in the financial year 1992-93.27. 2009 : 99.42.590 (as at March 31.55. (iii) (iv) 1% FCCN due 2011 1. Credit Enhanced. 2009 : 6.00.120/. 2 Secured Loans : (i) Nature of Security (on loans including interest accrued thereon) : (a) Rated.306 Global Depository Shares (GDS) each representing one share at a price of US$ 12.02.949 Ordinary Shares issued to the Shareholders of the erstwhile Tata Finance Limited in terms of the merger in the financial year 2005-06. 1794. together with all buildings. Chikhali and Maval in Pune District and plant and machinery and other movable assets situated at Pantnagar in the State of Uttarakhand.76. 2009 : 1.per share.83.962) Ordinary Shares issued upon conversions of Foreign Currency Convertible Notes (FCCNs). Capital Redemption Reserve.12.83. 2009 : 74.98. 0% FCCN due 2011 78.66.19 crores). 305 per share were allotted on exercising of options pertaining to Rights issue of 2008.02.64.42. Amalgamation Reserve. 1.53. (e) (f ) 6.30.76.402) Ordinary Shares allotted against the exercise of equivalent number of warrants pertaining to the rights issue of 2001 at Rs.25.42. The balance 60 notes have been redeemed during the year 2008-09.634 (as at March 31.114 (as at March 31. The Issued and subscribed capital includes : (a) Ordinary Shares allotted as fully paid up shares for consideration other than cash: (b) (c) (d) 7.24.08. aggregating US$ 375 million (Rs.071 (as at March 31. 2009 : 6.883 (as at March 31. 2009 : Nil) Ordinary Shares issued against 1.470 Ordinary Shares allotted to Daimler – Benz AG in consideration of materials supplied to the Company in the financial year 1956-57. The entitlements to 1.92. 2009 : 97.940) Notes. 340 per share and 6.45. 2009 : Nil) Notes.04.164) Ordinary Shares at Rs.095) Ordinary Shares issued against 99. 15.473) Ordinary Shares and 99.883 (as at March 31. 1.00.164) ‘A’ Ordinary Shares at Rs. by way of English mortgage of the Company’s lands. 5.66. 3.99.58.

Secured.64) (2. in crores) Non Convertible Debentures (NCDs) Redeemable on Principal Premium Total 2% Non-Convertible Debentures (2011) March 31.31 791.46 589.78) (1044. 2014 1800. bills receivable and book debts including receivable from Hire Purchase / Leasing and all other moveable current assets except cash and bank balances. loans and advances of the Company both present and future.12 147.52 50. 15] (contd. 9.02 126.) (b) Rated.05 2% Non-Convertible Debentures (2016) March 31.00 919.11 286. in crores) 3 (a) Major components of deferred tax arising on account of timing differences are [Item 4.50) 12.80) Others (1. 2013 350.50) 76. stock in process.) (A) Notes to Balance Sheet (contd.89 (865.31 45.00 200. 2020 200.23 2169.00 658. plant and machinery and other movable assets situated at Sanand in the State of Gujarat. All the repayments are due from 2010-11 to 2012-13.46 2008-2009 15.05 2458. 2010 2009 Liabilities: Depreciation (980.70) Assets: Employee Benefits / Expenses allowable on payment basis Provision for Doubtful Debts Premium on Redemption of CARS (including exchange fluctuation on premium) Unabsorbed Depreciation and Business Losses Others Net Deferred Tax Liability (b) Deferred Tax charge for the year Opening Deferred Tax Liability Debited / (Credited) to securities premium account Debited / (Credited) to general reserve Debited / (Credited) to hedging reserve account Others Less : Closing Deferred Tax Liability Deferred Tax charge for the year (c) Tax expense [Item 10.06 919.96 2% Non-Convertible Debentures (2013) March 31.55 446. (c) Loans. March 31. stores and spares not relating to plant and machinery (consumable stores and spares).42 635. Overdrafts and Buyers line of credit from Banks are secured by hypothecation of existing current assets of the Company viz.50 2009-2010 865.48 30. Non-Convertible Debentures is being secured by a parri passu charge by way of an English mortgage of the Company’s freehold land together with immovable properties. 2016 1250.95% Non-Convertible Debentures (2020) March 2.72 (47.23 9.81) 77 .06) 3.96 871.Schedules forming part of the Balance Sheet and Profit and Loss Account “14” [Item no. (Rs.72) (963.14) (2010.00 71.48 251. Page 56]: As at As at March 31.00 (2. semi-finished goods. (ii) Schedule of repayment and redemption for Non-Convertible Debentures : (Rs.00 96. stock of raw materials.50 (1508.10) (19. Cash Credits.55 2% Non-Convertible Debentures (2014) March 31.81 8.18 1508.81 (2.64 589. Listed.69 259. Page 57] : (i) Current Tax (net of credit for Minimum Alternate Tax) (ii) Fringe Benefit Tax (iii) Deferred Tax 2009-2010 589.46 2008-2009 975.64) 73.12) Product Development Cost (1317.00 (iii) The Buyers line of credit from Banks is repayable at the end of three years from the drawdown dates.03) (45.24 1144.31 865.78 868.78) (2300. 2011 800.95% Coupon.

) 4.54 6.62 crores) 65.25 23.81 2. Out of these Rs.97 11.63 crores) made in respect of overdue instalments. 2009 (ii) (b) A general description of significant leasing arrangements The Company has entered into Finance lease arrangements for computers and data processing equipments from a vendor.81 42. 332.63 11. 15] (contd. 176.34 crores) are due for over six months.59 crores) in respect of instalments that have become due but have not been recovered.89 56. 78 . in crores) (A) Notes to Balance Sheet (contd.) (Rs. As at March 31. 269. 595.86 15.71 crores (as at March 31. II Disclosure in respect of operating leases : Assets given on Lease : (a) Total of minimum lease payments receivable The total of minimum lease payments receivable for a period: Not later than one year Later than one year and not later than five years Later than five years Gross block Accumulated depreciation Depreciation for the year Rs. 2009 Rs.03 74.59 3.52 crores (2008-09 Rs. There is an aggregate provision of Rs. 2. Future instalments receivable from hirer / lessees and vehicle loans [Schedule 10 (A).38 (b) (c) A general description of significant leasing arrangements The Company has entered into Operating lease arrangements for buildings and plant & machinery.70 12.03 64. 351.87 13. I Disclosure in respect of finance leases : Assets taken on Lease : (a) (i) Total of minimum lease payments Total of minimum lease payments for a period : Not later than one year Later than one year and not later than five years Present value of the minimum lease payments payable Present Value of the minimum lease payments payable : Not later than one year Later than one year and not later than five years 25. 2010 5. 3.11 12.29 crores (as at March 31. page 71] includes Rs.57 21.71 As at March 31. 2009 Rs. 2009 Rs. 729.60 14.35 3.48 37.28 12.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet and Profit and Loss Account “14” [Item no.17 24.46 46.50 crores (as at March 31.35 34.

Schedules forming part of the Balance Sheet and Profit and Loss Account
“14” [Item no. 15] (contd.) (A) 6 Notes to Balance Sheet (contd.) i) Related party disclosures for the year ended March 31, 2010 a) Related Party and their relationship 1. Subsidiaries : Tata Technologies Ltd TAL Manufacturing Solutions Ltd H V Axles Ltd H V Transmissions Ltd Sheba Properties Ltd Concorde Motors (India) Ltd Telco Construction Equipment Co. Ltd (till March 29, 2010) Tata Daewoo Commercial Vehicle Co. Ltd Tata Motors Insurance Broking & Advisory Services Ltd Tata Motors European Technical Centre Plc Tata Motors Finance Ltd Tata Marcopolo Motors Ltd Tata Motors (Thailand) Ltd Tata Motors (SA) (Proprietary) Ltd TML Holdings Pte. Ltd, Singapore TML Distribution Company Ltd Tata Hispano Motors Carrocera S.A. (from October 16, 2009) (formerly known as Hispano Carrocera, S.A.) JaguarLandRover Ltd Jaguar Cars Overseas Holdings Ltd Jaguar Land Rover Austria GmbH Jaguar Belux NV Jaguar Cars Limited Jaguar Land Rover Japan Limited Jaguar Cars South Africa (pty) Ltd Jaguar Italia SpA Jaguar Cars Exports Ltd The Daimler Motor Company Ltd The Jaguar Collection Ltd Daimler Transport Vehicles Ltd S.S. Cars Ltd The Lanchester Motor Company Ltd Jaguar Hispania Sociedad Jaguar Deutschland GmbH Land Rover Land Rover Group Ltd Jaguar Land Rover North America LLC Land Rover Belux SA/NV Land Rover Ireland Ltd Jaguar Land Rover Nederland BV (formerly known as Land Rover Nederland BV) 2. Associates : Tata AutoComp Systems Ltd Tata Cummins Ltd Tata Precision Industries Pte. Ltd Nita Company Ltd Tata Sons Ltd (Investing Party) Automobile Corporation of Goa Ltd Joint Ventures : Fiat India Automobiles Ltd TATA HAL Technologies Ltd

INCAT International Plc. Tata Technologies Europe Limited INCAT SAS INCAT GmbH INCAT Holdings B.V. (liquidated w.e.f. April 11, 2009) Lemmerpoort B.V (under Bankruptcy proceedings) INCAT K.K (liquidated w.e.f. July 31, 2009) Tata Technologies Inc (formerly known as INCAT Systems Inc) Tata Technologies de Mexico, S.A. de CV (formerly known as Integrated Systems Technologies de Mexico, S.A. de C.V.) Tata Technologies (Canada) Inc (formerly known as INCAT Solutions of Canada Inc) Tata Technologies (Thailand) Limited (formerly known as INCAT (Thailand) Ltd) Tata Technologies Pte Ltd, Singapore Miljobil Grenland AS Miljobil Innovasjan AS (merged with Miljobil Grenland AS w.e.f. October 12, 2009) Carrosseries Hispano Maghreb, Morocco (from October 16, 2009) Serviplem S.A (upto March 29, 2010) Eurl Lebrero France (upto March 29, 2010) Inner Mongolia North Baryval Engineering Special Vehicle Corporation Ltd (upto March 29, 2010) Comoplesa Lebrero S.A (upto March 29, 2010) Baryval Assistencia Tecnica S.L (upto March 29, 2010) Jaguar Land Rover Portugal - Veiculos e Pecas, LDA Jaguar Land Rover Australia Pty Ltd Land Rover Exports Ltd Land Rover Italia SpA Land Rover Espana SL Land Rover Deutschland GmbH Jaguar & Land Rover Asia Pacific Company Limited (liquidated w.e.f. October 12, 2009) Jaguar Land Rover Mexico SA de CV Jaguar Land Rover Korea Co. Ltd Jaguar Land Rover Automotive Trading (Shanghai) Co. Ltd Jaguar Land Rover Canada ULC Jaguar Land Rover France, SAS Jaguar Land Rover (South Africa) (Pty) Limited Jaguar Land Rover Brazil LLC (from April 1, 2009) Limited Liability Company “Jaguar Land Rover” (Russia) (from April 1, 2009) Land Rover Parts Ltd (from April 2, 2009) Land Rover Parts US LLC (from June 19, 2009)

Tata Hispano Motors Carrocera S.A. (upto October 15, 2009) (formerly known as Hispano Carrocera, S.A.) (subsidiary from October 15, 2009) Telco Construction Equipment Co. Ltd (from March 30, 2010) (subsidiary upto March 29, 2010) Telcon Ecoroad Resurfaces Pvt. Ltd (upto March 29, 2010) Jaguar Cars Finance Ltd 4. Key Management Personnel Mr. Ravi Kant (upto June 1, 2009) Mr. P M Telang (Rs. in crores) 2009-2010 Total 6423.58 2750.29 15445.78 7164.08 41.73 53.64 693.39 484.69 1.34 138.51 1290.90 1252.11 84.44 97.13 12702.52 9947.38 1972.01 3969.41 883.41 (259.79) 856.99 797.00 422.39 301.19 601.57 626.74 73.02 44.12 250.88 318.16 12238.78

3.

b)

Transactions with the related parties Subsidiaries Purchase of goods Sale of goods (inclusive of sales tax) Purchase of fixed assets Sale of Investments Sale of fixed assets (including transfer of technology) Services received Services rendered Finance given (including loans and equity) Finance taken (including loans and equity) Interest / Dividend paid / (received) (net) Amount receivable Amount payable Amount receivable (in respect of loans, interest and dividend) Amount payable (in respect of loans, interest and dividend) Securitisation of Debts Bank Guarantee / Other assets given as security 786.99 125.78 14889.04 6987.44 41.73 53.64 1.34 138.51 1226.18 1183.96 74.60 60.57 12268.71 9338.26 1640.01 860.50 836.91 (301.14) 809.21 773.69 106.52 114.17 293.81 222.05 60.01 44.12 250.88 318.16 11382.25 Joint Venture 3190.61 749.34 285.60 66.84 1.53 27.97 395.00 582.95 265.00 101.66 (39.90) (33.96) 213.03 74.36 275.59 265.00 856.53 Associates 2445.98 1875.17 271.14 109.80 693.39 484.69 55.82 58.77 8.31 8.59 38.81 26.17 67.00 3007.25 86.40 75.31 47.78 23.31 102.84 112.66 32.07 139.58 13.01 Key Management Personnel 8.90 9.38 0.10 0.11 -

79

Sixty-fifth annual report 2009-10
Tata Motors Limited

Schedules forming part of the Balance Sheet and Profit and Loss Account
“14” [Item no. 15] (contd.) (A) Notes to Balance Sheet (contd.) (c) Disclosure in respect of material transactions with related parties (i) Purchase of goods Fiat India Automobiles Ltd Tata Cummins Ltd Tata AutoComp Systems Ltd Automobile Corporation of Goa Ltd TML Distribution Company Ltd Concorde Motors (India) Ltd Tata Cummins Ltd Tata Sons Ltd TAL Manufacturing Solutions Ltd Tata Technologies Ltd HV Transmissions Ltd Tata Daewoo Commercial Vehicle Co. Ltd HV Axles Ltd HV Transmissions Ltd Tata Technologies Ltd Tata Motors European Technical Centre Plc Tata Motors Finance Ltd TML Distribution Company Ltd HV Axles Ltd HV Transmissions Ltd Telco Construction Equipment Co. Ltd Fiat India Automobiles Ltd TML Holdings Pte Ltd, (Singapore) Fiat India Automobiles Ltd Tata Motors (Thailand) Ltd TML Distribution Company Ltd Tata Motors Finance Ltd TML Holdings Pte Ltd, (Singapore) TML Distribution Company Ltd Tata Motors Finance Ltd Tata Motors (Thailand) Ltd Fiat India Automobiles Ltd Fiat India Automobiles Ltd Tata Sons Ltd TML Distribution Company Ltd Tata Technologies Ltd Tata Motors Finance Ltd Tata Motors (Thailand) Ltd Sheba Properties Ltd Fiat India Automobiles Ltd Tata Sons Ltd Tata Sons Ltd Tata Cummins Ltd Tata Technologies Ltd Sheba Properties Ltd Tata Daewoo Commercial Vehicle Co. Ltd Telco Construction Equipment Co. Ltd HV Axles Ltd HV Transmissions Ltd Fiat India Automobiles Ltd Tata Technologies Ltd Fiat India Automobiles Ltd Tata Hispano Motors Carrocera S.A. (formerly known as Hispano Carrocera, S.A.) Tata Motors Finance Ltd 2009-2010 3190.61 1809.42 446.19 190.37 14518.42 243.47 156.02 693.39 31.46 10.27 1.31 398.44 247.44 235.54 170.56 119.51 25.47 12.43 12.37 10.20 1.53 10575.61 130.00 89.69 1014.96 100.00 46.85 265.00 1014.96 229.00 100.00 89.69 5.00 265.00 108.50 (9.36) (6.75) (6.06) 10.10 5.81 (49.99) (4.81) (Rs. in crores) 2008-2009 749.34 1213.81 367.44 293.92 6656.54 248.46 76.06 484.69 32.17 21.47 138.51 327.60 190.92 198.41 147.73 216.50 11.38 14.78 14.37 9.82 27.97 2238.40 267.95 224.95 200.00 5570.34 110.00 37.00 108.50 315.00 2979.40 194.30 257.50 162.00 25.75 101.66 126.73 (9.24) (27.00) (15.15) (140.00) (77.54) (47.80) (13.39) (11.90) (33.96) (6.09)

(ii)

Sale of goods

(iii) (iv) (v) (vi)

Sale of Investments Purchase of fixed assets Sale of fixed assets (including transfer of technology) Services received

(vii)

Services rendered

(viii)

Finance given (including loans and equity) Investment in Equity Investment in Equity Investment in Equity Investment in Equity Investment in Equity Investment in Cumulative Redeemable Preference Shares Inter Corporate Deposit Inter Corporate Deposit Inter Corporate Deposit Inter Corporate Deposit Subordinated loan # Finance taken (including loans and equity) Rights issue money received Inter Corporate Deposit Inter Corporate Deposit Inter Corporate Deposit Inter Corporate Deposit Inter Corporate Deposit Inter Corporate Deposit Interest / Dividend paid / (received) Dividend paid Dividend received Dividend received Dividend received Dividend received Dividend received Dividend received Dividend received Dividend received Interest paid Interest paid Interest received Interest received

(ix)

(x)

(xi) (xii)

Securitisation of Debts Securitisation of Debts Bank Guarantee / other assets given as security Bank Guarantee / other assets given for Securitisation of debts Bank Guarantee for supplier bill discounting facility Bank Guarantee to bankers for credit facilities Bank Guarantee to bankers for bridge finance facility

-

250.88

Tata Motors Finance Ltd Fiat India Automobiles Ltd Fiat India Automobiles Ltd JaguarLandRover Ltd

318.16 -

135.74 179.03 677.50 11246.51

# The loan of Rs. 265 crores to Fiat India Automobile Ltd (FIAL), a joint venture of the Company, is subordinated for all principal, interest, costs, fees, charges and expenses and other amounts incurred or to be incurred or at any time due and owing under the said subordinated loan to the repayments to be made by FIAL to certain specified lenders.

80

Schedules forming part of the Balance Sheet and Profit and Loss Account
“14” [Item no. 15] (contd.) (A) Notes to Balance Sheet (contd.) ii) Disclosures required by Clause 32 of the Listing Agreement Amount of loans / advances in nature of loans outstanding from Subsidiaries and Associates during 2009-2010 Name of the Company Outstanding as at March 31, 2010 Rs. crores a) Subsidiaries HV Transmissions Ltd Sheba Properties Ltd TAL Manufacturing Solutions Ltd Concorde Motors (India) Ltd HV Axles Ltd Tata Motors European Technical Centre Plc., UK [Note (i) below] Tata Marcopolo Motors Ltd Tata Motors (Thailand) Ltd Tata Motors Finance Ltd TML Distribution Company Ltd Telco Construction Equipment Co. Ltd [Note (ii) below] (Associate from current year) Tata Hispano Motors Carrocera S.A. (formerly known as Hispano Carrocera, S.A.) (Subsidiary company from current year) b) Associates Tata Precision Industries Pte. Ltd. (Singapore) Tata Hispano Motors Carrocera S.A. (formerly known as Hispano Carrocera, S.A.) (Subsidiary company from current year) Tata AutoComp Systems Ltd c) Joint Ventures : Fiat India Automobiles Ltd 6.50 5.50 6.50 31.00 30.00 32.59 34.73 10.00 10.00 60.68 106.95 147.73 Maximum amount outstanding during the year Rs. crores 13.50 34.50 5.00 9.50 23.00 35.00 30.00 9.00 4.80 38.06 36.87 21.00 25.00 106.95 108.50 100.00 17.00 200.00 80.00 40.00 147.73 Investment in shares of the Company No. of Shares Direct Investment in shares of subsidiaries of the Company No. of Shares 2,50,000 9,498 9,498 93,990 19,996 -

8.02 8.34 101.26 23.83 23.83

8.48 8.44 102.70 23.83 50.00 265.00 290.00

-

-

265.00 265.00 Note : (i) Shares in Miljobil Grenland AS (ii) 63,990 shares in Serviplem S.A and 30,000 shares in Comoplesa Lebrero S.A 7.

The Company has a joint venture with Fiat Group Automobiles S.p.A., Italy, Fiat India Automobiles Limited (FIAL), for manufacturing passenger cars, engines and transmissions at Ranjangaon in India. The Company has an investment of Rs. 999.54 crores as at March 31, 2010, representing 50% shareholding in FIAL . The proportionate share of assets and liabilities as at March 31, 2010 and income and expenditure for the year 2009-10 of FIAL are given below : (Rs. in crores) As on As on March 31, March 31, 2010 2009 2009-2010 2008-2009 (Unaudited) (Audited) (Unaudited) (Audited) RESERVES AND SURPLUS INCOME Reserves and Surplus (484.31) (349.18) Sale of products and services 1614.85 401.43 Less : Excise duty (192.92) (53.57) Other operating income 146.31 42.74 ASSETS Net Block (including CWIP) Investments (Rs. 50.00) Current Assets 1769.34 983.88 2753.22 LIABILITIES Loan Funds Current Liabilities Provisions 1337.90 1028.20 9.71 2375.81 3.14 50.01 1644.35 756.31 2400.66 755.18 1278.09 2.51 2035.78 156.93 1568.25 EXPENDITURE Manufacturing and other expenses Expenditure transferred to capital and other accounts Product Development Cost Depreciation Interest Tax expenses 1437.93 0.48 140.79 124.18 1703.38 390.60 597.86 (28.97) 0.33 59.49 65.56 1.54 695.81

Claims not acknowledged as debts Capital Commitments

81

44 - 107.72) (647.Net of Tax (ii) Excise Duty .94 89. Small and Medium Enterprises Development Act.18 150.78 439.78 1075.79 173.80 100. sales tax and other matters where the issues were decided in favour of the Company for which the Department is in further appeal 12. 2006 : The information as required to be disclosed under the Micro.64 27. Foreign Currency Monetary Item Translation Difference Account [Items 3 and 8.14 (161.49 14.12 35.00 26.Gross . 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. 2010 10.50 (ii) Amounts paid after appointed date during the year .51 178.95 1062.76 20.73 129.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet and Profit and Loss Account (Rs. Page 56]: As at March 31.Interest 1.94 312. 2009 3.56 198.51 57. Small and Medium Enterprise Development Act. page 70] (iv) In respect of retained interest in securitisation transactions (v) In respect of subordinate receivables (vi) Deposits given as collateral security (vii) Others 13.Principal 350.12 Opening Balance (a) Exchange (loss) / gain on Foreign Currency Loan given (b) Exchange (loss) / gain on investment in preference shares (c) Exchange gain / (loss) on FCCN/CARS Closing Balance As at March 31.) 8. in crores) “14” [Item no.Gross .86 162.96 119. 15] (contd.80 million (ii) Fiat India Automobiles Ltd (a joint venture) 460.19 95. Claims against the Company not acknowledged as debts (i) Sales Tax . The claims / liabilities in respect of excise duty.51 145. The amount of principal and interest outstanding during 2009-10 is given below : 2009-2010 2008-2009 (i) Amounts unpaid as at year end . 2009 472.48 11246.69) As at March 31.) (A) Notes to Balance Sheet (contd.74 1.79 132. Guarantees given by the Company to the bankers with regard to credit facilities given to : (i) JaguarLandRover Ltd.03 82 .71 414.00 (iii) Amount of interest accrued and unpaid as at year end 1.Net of Tax (iii) Others .12 (14.03 62. UK (an indirect subsidiary) USD 2217.64 252.78 54.44 242. 2010 164.69 604.50 (iv) Amount of interest paid during the year as per section 16 0. based on decision in earlier assessment years (c) Pending in appeal / other matters 11.47 307.32 (253.Gross .00 0. Other money for which the Company is contingently liable (i) In respect of bills discounted and export sales on deferred credit (ii) The Company has given guarantees for liability in respect of receivables assigned by way of securitisation (iii) Cash Margins / Collateral [Schedule 9 (d).00 0.04 9.97 85. Estimated amount of contracts remaining to be executed on capital account and not provided for 14. Micro.23) 336.51 856.61 1278.91) 164.18 2450.92 As at March 31.11 96.Net of Tax (iv) Income tax (exclusive of the effect of similar matters in respect of assessments remaining to be completed) in respect of matters : (a) Decided in the Company’s favour by Appellate authorities and for which the Department is in further appeal (b) Pending before Appellate authorities in respect of which the Company is in appeal and expects to succeed.

include [Also refer Schedule 14(E) and 15.00.700 2008-2009 821.062 22.01 993.00.97 2009-2010 Rupees 3.51 756.87 489.22 316.000 10.00.60.00.50.000 37.00.64 262.000 35. 5.00.889 10.50.84 2008-2009 573.40 719.22 357.000 2.23 2009-2010 81.39 613. in crores) (B) Notes to Profit and Loss Account (1) Purchase of products for sale etc.20 137.50.96.54 237. 40.) (Rs.32 2008-2009 54. 19.32 1422.00.800 (2) The total expenditure incurred on Research and Development : (a) Expenditure charged to profit and loss account (b) Expenditure capitalised during the year (3) (a) (i) (ii) Auditors’ Remuneration (excluding service tax) : (b) Audit Fees Audit Fees for financial statements as per IFRS / US GAAP (including SOX certification) # (iii) In other Capacities : Company Law Matters Tax Audit Corporate Governance certification Taxation Matters * (iv) Other Services @ (v) Reimbursement of travelling and out-of-pocket expenses Cost Auditors’ Remuneration (excluding service tax) : (i) Cost Audit Fees (ii) Reimbursement of travelling and out-of-pocket expenses Notes : @ Excludes audit fees debited to Securities Premium Account related to : (i) GDS and FCCN Issue (ii) Rights issue # Includes amount paid for earlier years * Includes remuneration for professional services rendered by firms of auditors in which some of the partners of the statutory auditors firm are partners.000 4.062 (Rs.75.00. page 88]: (a) Spare parts and accessories for sale (b) Bodies and trailers for mounting on chassis (c) Vehicles 52891 nos.000 5.63 834.00 crores (2008-09 Rs.000 35.000 4.000 4.22 1170.00.46 673. in crores) (4) Interest and Discounting Charges [Item 7.000 50.000 5.00.00.) 2009-2010 1054. Less : (i) Transferred to Capital account (ii) Interest received on bank and other accounts [tax deducted at source Rs.97 1103.000 5.000 37.13 183.000 36.00.000 11.500 5.00.Schedules forming part of the Balance Sheet and Profit and Loss Account “14” [Item no.00.26.27.72 523.00.75 1089.53 113.29 1476.61 2008-2009 Rupees 3.17 4513. (2008-09 : 12341 nos.000 - 65. page 57] : (A) Interest : (a) On Debentures and fixed loans (b) Others . 15] (contd.74 crores)] (B) Discounting charges (net) 2009-2010 880.28 142.97 2180.000 35.68 83 .66 2739.

72) 123.97 4.98) 424.50 N/A N/A N/A N/A 21.53 5.96 31.96 31.50 N/A N/A N/A N/A 17.00 (3.99 N/A (73.17 3.00 N/A N/A 3.42 21.24 (18.92 47.80 9.40 27.91) 440.00 N/A N/A N/A N/A vii 74% 26% 76% 24% 68% 32% 63% 37% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A viii One percentage point increase in Medical inflation rate 2009 77.18 (57. page 60 under item : ii Actual Contribution and Benefit Payments for year ended March 31.80) 15.75 3.17) 73. 2010 Gratuity.75-8.95 (54.75) 57.65 2009 1.68 2.49 2.95 137.60 12.14) iv 485.95 6.17 5.11 1.53 5.69 4.95 4.49 (22.95) 130.26) 367.8.45 296.24) N/A 8.00 8. such as supply and demand in the employment market.36 25.42 6.21 N/A (72.24 crores (2008-09 Rs.70) 39.28 2008 52.17 (3.80 9.42 (21.42 100.75 .50 N/A 4.65 32.36 424.29 N/A (130.24 37.42 17.00 (3.65 crores to the funded pension plans in the year 2010-11.98 58.98 75.50 N/A N/A N/A N/A 3.96 2007 16.75 3.15 2.50 8.25 N/A (57.29) 137. Present Value of Defined Benefit Obligation Fair value of plan assets Net liability recognised in Balance Sheet Change in Defined Benefit Obligations (DBO) during the year ended March 31.04 14.50 N/A N/A N/A N/A 22.49) 130.01 2010 67.60 483.90 Compensated Absences 2009 14.00 18.14 21.50 N/A 4.74) (3.85 10.43) 70.45 (49.50 8.38 3.00 8.51) 57.43 (58.39 28.60 34.66) N/A 8.80 4.97 38.13 (57.48 (17.92 2.50 N/A 4.72 (17.00 8.90 9.00 N/A N/A 3.43 3.49 22.30 22.69 (9.As per actuarial valuations as on March 31.86 (1.42 3.42 (32. seniority.66 3.95 440.51 N/A (70.00 vi 6.87 4(a) 2007 10.39 367.00 N/A N/A 3.99 57.50 7.50 N/A 4. (c) The assumption of future salary increases.43 3.15 2.90 (3.59 12.51 51.04 93.30 4.02 424.46) 46. Superannuation and BKY 2010 i Components of employer expense Current Service cost Interest cost Expected return on plan assets Actuarial (Gains) / Losses Total expense recognised in the Statement of Profit & Loss Account in Schedule B.20 22. Plan assets at the beginning of the year Actual return on plan assets Actual Company contributions Benefits paid Plan assets at the end of the year Actuarial Assumptions Discount Rate (%) Expected Return on plan assets (%) Medical cost inflation (%) The major categories of plan assets as percentage of total plan assets Debt securities Balances with banks Effect of one percentage point change in assumed Medical inflation rate 2010 Revised DBO as at March 31.66) 51.99) 70.60 34.72 10.69 (9.92 (18. Present Value of DBO at the beginning of the year Current Service cost Interest cost Actuarial losses Benefits paid Present Value of DBO at the end of the year Change in Fair Value of Assets during the year ended March 31.43) N/A 8.97 4. Revised service cost for the year Revised interest cost for the year (a) Defined Contribution PlansThe Company’s contribution to defined contribution plan aggregated Rs.26) 440.24 87. 113.21 N/A N/A 18.20 16. (b) The expected rate of return on plan assets is based on market expectation.35 84.63 2007 56. promotion and other relevant factors.85 10.41 64.15 75.84 4(b) & 4(c) 2008 21.43 18.59 crores) for the year ended March 31.09 39. Actual benefit payments Actual Contributions Net liability recognised in Balance Sheet as at March 31.62 28.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet and Profit and Loss Account “14” [Item no.47 34.73 14.51 2.09 (35.96 22.55 1.42) 137.26 100.60 12.04 N/A (137. 2010 has been recognised in the statement of Profit and Loss Account under item 4 (b) in Schedule B on page 60.8.24) 159.39 2.18 54.50 6.74 2008 12.24 18.98 (54.49) N/A 8.60 474.59 70.44 (25.25 35.98 87.30 22.75 (3.72 3.47 (21.10 1.29 1.80) (22.45 42.42 5.80 (54. 119.86 (1. at the beginning of the year.33 One percentage point decrease in Medical inflation rate 2009 64. considered in actuarial valuation.20) 432.44 69.49 21.69 4(c) 2008 1.80 57. in crores) 54.48 47.00 16.66 (3.29 123.17 3.79 2008 58.24 37.97 38.95 367.19 3.68 10.04) 123.21 24.25) 51.83 2009 25.78 2010 14.72 10.47 24.26) 25.36 385.75 .75) N/A 8.15) 483.43 (3.86 Post-retirement Medicare scheme 2010 2.39 (53.58) 485.11 1.48 (d) The Company expects to contribute Rs 70. 15] (contd.48 2. 81.80 2007 46.36 (58.93) (159.74 (54.24 22.14 130.14 N/A (51.14 159.66 iii 534.23 73.65 (30.15) 534.80 4.74) 6.42) N/A 8.56) (4.14 v 432.40 27.95 432.72) N/A 8.88 (Rs.72 17.) (B) Notes to Profit and Loss Account : (5) Defined benefit plans / Long term compensated absences .45 10. 84 .56) 474.96 2.02 (51.59 N/A (123. for returns over the entire life of the related obligation.00 .98) 474.17) N/A 8.68 10.8.25 1.19 3.41) 66.42 5. takes into account of inflation.29 14.95 24.20) 485.73 14.89 2007 2.59) 73.

27 (236.49 4. 85 . Nos.18 253. page 86]: Opening Balance Provision for premium on redemption of FCCN (including withholding tax) Foreign currency exchange (gain) / loss Premium paid on redemption of FCCN Reversal of provision for premium due to conversion of FCCN Reversal of provision for premium due to buyback of CARS Closing Balance (c) Provision for inventory relief to dealers 1094.33 ‘A’ Ordinary Share holders are entitled to receive dividend @ 5% points more than the aggregate rate of dividend determined by the Company on Ordinary Shares for the financial year.63 63. crores Rs.76.37.04) (27.60 20.50) 993. crores Rs.94 275.69.91 215.71.Schedules forming part of the Balance Sheet and Profit and Loss Account (Rs.26 11.19.80) 248. 2009-2010 2240.00.957 2.32.30.46 (133.08 46.26 41. page 74] : Opening Balance Provision for the year (net) (including additional provision for earlier years) Payments / debits (net of recoveries from suppliers) Closing Balance 134. crores Rupees Rupees Rs.14 42. in crores) “14” [Item no.164 2028.30.00 937.74.) (6) Other Provisions include [Schedule 12(e). Rs.36.20 1001.819 52.53.76.41.41.53.01 46.50 (7) Earnings Per Share : (a) Profit after tax (b) The weighted average number of Ordinary Shares for Basic EPS (c) The weighted average number of ‘A’ Ordinary Shares for Basic EPS (d) The nominal value per Share (Ordinary and ‘A’ Ordinary) (e) Share of Profit for Ordinary Shares for Basic EPS (f ) Share of Profit for ‘A’ Ordinary Shares for Basic EPS * (g) Earnings Per Ordinary Share (Basic) (h) Earnings Per ‘A’ Ordinary Share (Basic) (i) Profit after tax for Basic EPS (j) Add: Interest payable on outstanding Foreign Currency Convertible Notes (k) Profit after tax for Diluted EPS… (l) The weighted average number of Ordinary Shares for Basic EPS (m) Add: Adjustment for Options relating to warrants.99 39.38) (225. page 72] : 2009-2010 (a) Product warranty [Note (f ). Nos.24 (201.499 10.28.136 6.01.63 22.28.36. crores Rupees Rupees 5.19 (b) Premium on redemption of Foreign Currency Convertible Notes (FCCN) and Convertible Alternative Reference Securities (CARS) [Note (o).028 1. crores Nos. Foreign Currency Convertible Notes and Convertible Alternative Reference Securities (n) The weighted average number of Ordinary Shares for Diluted EPS (o) The weighted average number of ‘A’ Ordinary Shares for Basic EPS (p) Add: Adjustment for ‘A’ Ordinary Shares held in abeyance (q) The weighted average number of ‘A’ Ordinary Shares for Diluted EPS (r) Share of Profit for Ordinary Shares for Diluted EPS (s) Share of Profit for ‘A’ Ordinary Shares for Diluted EPS * (t) Earnings Per Ordinary Share (Diluted) (u) Earnings Per ‘A’ Ordinary Share (Diluted) * Rs.37.499 42.028 10.690 45.08 41. crores Rs.76.463 2008-2009 1001.19 316.15 - 887.47.64.00 1012.57 0.63 2008-2009 155. page 75 and Note (C)(i). crores Rs. Nos. Ordinary Shares held in abeyance.282 6. Nos.87 2240.74.00 1964.66 58.42.469 2.87) 1094.99) 134.93 2282.57 257.65.83 21.469 Nos. Nos.64 (0.) (B) Notes to Profit and Loss Account (contd.83 38.74.456 953.26 41. crores Nos.463 6.84 234. 15] (contd.37 42.78.70 23. Rupees Rs.159 2.

266 equity shares to the Noteholders. opted to convert their Notes into Ordinary Shares. 2009 NA November 25. would continue with all the terms of their notes as applicable prior to this limited period offer.75% stake in Telcon. Ltd for a consideration of Rs.253% JP ¥ 10710 million 78.) by way of exercise of the existing call option. On March 30. 43. Noteholders of outstanding 0% JPY 11.400 US $ 1 = Rs. the Company has acquired 79% shares in Tata Hispano Motors Carrocera S.16.5 billion (approx Rs. 10765.96 US $ 1 = Rs. 1794. USD 229.750 2. 780. who did not participate. Previous year’s figures have been regrouped where necessary.63.59 October 11.98.17 US $ 1 = Rs. On March 23. 2012 (in whole but not in part) at our option or any time (in whole but not in part) in the event of certain changes affecting taxation in India Early redemption at the option of the Company subject to certain conditions on or after April 27.27. Noteholders could opt to receive shares at enhanced conversion terms.000.54% of USD Notes (i. 2011 0% FCCN (due 2011) March 20.88. 2006 to February 19. 2011 to June 12.867 2410 Nil Nil Nil April 27. 2012 4% FCCN (due 2014) October 15. 2004 US $ 100 million (Rs.62% of the JPY Notes (i. 40. During this period. Tata Hispano Motors Carrocera S.505% Nil Nil 170 4.111% US $ 97. 2008. terms of issue and the status of conversion as at March 31.39 Re. 907. Additionally.e.S.43. On October 16. 1992. has become a 100% subsidiary of the Company.1315. 2011 (in whole or in part) subject to certain conditions or ii) any time (in whole but not in part) in the event of certain changes affecting taxation in India March 21. the company has allotted 2. 2011 0% CARS (due 2012) July 11. 2010.59 Rs.59 million 74. 573. CARS can be converted into Qualifying Securities* in case there has been a Qualifying Issue as per the terms of Issue.66 Rs. 2011 99. (formerly known as Hispano Carrocera.e. which is a 100% subsidiary of the Company. Jaguar Land Rover businesses. 43.66.11.03 crores) JP ¥ 10. an option to convert their Notes into Ordinary Shares during a limited offer period.A.17. Singapore.66 May 2. 2006 JP ¥ 11.63 million). 2004 US $ 300 million (Rs. 2009 95.66.) (C) (i) Issue of Foreign Currency Convertible Notes (FCCN) and Convertible Alternative Reference Securities (CARS) : The Company issued the FCCN and CARS which are convertible into Ordinary Shares or ADRs.000 Rs.19 crores) US $ 100.50 crores. S. 2011 121. 2014 i) any time on or after October 15. 2011 at our option (in whole but not in part) or ii) any time (in whole but not in part) in the event of certain changes affecting taxation in India July 12. 623. as per the terms of Invitation Memorandum. 46. through JaguarLandRover Ltd. 2010 Aggregate amount of shares that could be issued on conversion of outstanding notes * April 27.696 @ Nil Nil 3.34 Re.366 41.000 Rs. 1 = JP ¥ 2.85 June 7. the Company sold 20% stake in Telco Construction Equipment Company Limited (Telcon) to Hitachi Construction Machinery Co.730 2.50 crores) US $ 1000 Rs.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Balance Sheet and Profit and Loss Account “14” [Item no. Investalia S. 43.85 Rs. 1001. @ Increased due to Rights Issue and GDS Issue.781% US $ 229. The particulars.A. through mutual agreement with the other share-holder. Consequently. in an all-cash transaction.78.225 @ October 16.114 Nil 30 75 2. 2014 108.50 crores) US $ 1000 Rs. 2010. 945. 15] (contd. Consequently the Company holds 39.71 crores).760 million (Rs. 2009 but prior to February 8.850 (ii) (iii) (iv) (v) (vi) (vii) Qualifying Securities holders will have no or differential voting rights in comparison to the existing shareholders and will have no rights to withdraw the underlying Shares except upon certain conditions as per the terms of issue. 2005 (in whole but not in part) any time (in whole but not in part) in the event of certain changes affecting taxation in India i) after March 20. 2010 (for conversion into ADSs) to October 9.71 crores) US $ 100. 2004 to March 28.760 million (due 2011) and 1% USD 300 million (due 2011) Convertible Notes. 86 . 40.820% Nil ii) Redeemable on Redemption percentage of the Principal Amount Amount converted Aggregate conversion into Shares / ADRs Aggregate Notes Redeemed Aggregate Notes Bought Back Notes Outstanding as at March 31. 1159. 2009 (for conversion into shares or GDSs) and October 15.710 million) and 76. 1 = JP ¥ 2. JPY10. 960. 2012 131.64 million 1.258 @ i) after October 11. the Company acquired from Ford Motor Company. 2007 US $ 490 million (Rs. As a result. who exercised the option. 736. 2009 US $ 375 million (Rs. 2004 to March 28. A. outstanding prior to the offering. Noteholders representing 93.106 US $ 1 = Rs. 438.A. Current year figures are shown in bold print. a wholly owned subsidiary of TML Holdings Pte Ltd. Spain.88 US $ 1 = Rs.000 Rs.. for a consideration of Euro 2 million (Rs.88. the Company had offered to Non-U. Noteholders.152 Nil Nil 70.19 crores). 13.85 1% FCCN (due 2011) April 27. 2010 are given below : Issue Issued on Issue Amount (in INR at the time of the issue) Face Value Conversion Price per share at fixed exchange rate Reset Conversion Price (Due to Rights Issue and GDS Issue) Exercise Period 0% FCCN (due 2009) April 27.28 NA June 7.72 US $ 1 = Rs. for a consideration of US $ 2. 2009. On June 2.450.

99 ¥ 1949.13 US $ 1204.23 505. 2010 Currency Amount (Foreign Currency in millions) US $ 1.01 28.36 8.58 Others Others 6495.94 £ 5.81 ¥ 60.95 136.Schedules forming part of the Balance Sheet and Profit and Loss Account “14” [Item no.05 • 28. The information on derivative instruments is as follows : (a) Derivative Instruments outstanding as at March 31.94 3. investment in preference shares.39 62.71 50.27 24.17 50.48 107. in crores) Sold Sold Buy Buy Buy To Sell To Sell To Sell Hybrid Sold 6.28 87 .00 US $ 10.33 603.54 THB 751.00 US $ 99.04 (c) 4856.12 12. 2010 Amount (Foreign Currency in millions) (i) Amount receivable on account of sales of goods.50 Foreign exchange currency exposures not covered by derivative instruments as at March 31.09 82.86 £ 1.05 Amount (Rs.71 687.35 47.99 US $ 1176.96 0.11 44.52 THB 449.31 • 4. currency swaps and currency options to hedge its exposure in foreign currency and interest rates. 15] (contd.67 • 4.49 193.00 US $ 10. in crores) (i) Forward exchange contracts (net) US $ / INR GBP / INR EUR / INR EUR / US $ (ii) Options (net) US $ / JPY US $ / INR US $ / CHF (b) Foreign exchange forward contracts.83 • 13.04 8.16 £ 6.08 8. interest rate swaps. loan and interest charges US $ 1081.31 107.18 28.25 10.41 US $ 118.51 £ 6.69 US $ 43.75 5967.16 171.) (D) Derivative transactions The Company uses forward exchange contracts.69 6105.39 • 20.62 • 15.00 Buy / Sell Amount (Rs. principal only swaps.53 SGD 2.44 (ii) Creditors payable on account of loan and interest charges and other foreign currency expenditure US $ 1445.51 SGD 2. designated as cash flow hedges as at March 31.08 36.18 £ 3. 2010 US $ / INR US $ 135.

1. and bodies thereon [including export and other incentives of Rs.14 1389. 5.83 105.545* 973 983.40 2263. 6.53 8.87 15. medium and heavy commercial vehicles.90 362. and bodies thereon # Vehicles purchased for resale Manufactured and purchased components for sale : Spare Parts for Vehicles Scrap Value 2008-2009 Quantity Nos.347 - 850. Value 667.43 111.22 6. (iii) Donated 6 vehicles (2008-09 : 15 vehicles).970 Value 2008-2009 Quantity Nos. jeep type vehicles. in crores) “14” [Item no. 415.47 253. utility vehicles etc.77 4. 88 .85 39.188* 715 581.15 209. 561. 4. (iv) Sent for display 4 vehicles (2008-09 : Nil) “15” [Item no.86 316. Light. 15] (contd.47 253.56 crores)] Spare Parts for Vehicles Diesel Engines Scrap Castings and Forgings Income from transfer of technology Income from Services 8. Value 8.92 90.17 506.78 879.39 2. jeep type vehicles.44 122.86 (b) Closing Stock Light.73 37925. medium and heavy commercial vehicles. 15] Information in regard to Sales effected by the Company (excluding inter-divisional transfers.68 695.188 715 581. passenger cars. (a) Opening Stock Light. 7.54 95.85 1067. utility vehicles etc.55 crores (2008-2009 Rs. passenger cars.39 81.00 138.85 39. * Excluding : (i) Capitalised / transferred for internal use 1000 vehicles (2008-09 : 782 vehicles) including 4 vehicles (2008-09 : 8 vehicles) for homologation / testing.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Profit and Loss Account (Rs.86 7.325 25302.971 34677. 3. jeep type vehicles. settlements for damaged goods and goods capitalised) : 2009-2010 Quantity Nos.) (E) Information in regard to opening stock and closing stock : 2009-2010 Quantity Nos.87 # Includes chassis mounted with bodies / trailers.71 1894. utility vehicles etc.421 7.78 879. passenger cars.59 28017. and bodies thereon # Vehicles purchased for resale Manufactured and purchased components for sale : Spare Parts for Vehicles Scrap 12.77 4.31 83. (ii) Transferred on settlement of insurance claims for damaged vehicles : 56 vehicles (2008-09 : 83 vehicles). medium and heavy commercial vehicles.

motor cars and other motor vehicles for transport of persons. motor cars and other motor vehicles for transport of persons. the Company holds# following industrial licences / IEM. shelters. Includes production for internal use. The production disclosed against manufactured components is the value (as this is more meaningful than quantity) of such components transferred during the year to the warehouses for sale. 89 .000 nos. (Singur Works) 3. special purpose motor cars: 500. chassis fitted with engine for motor vehicles (Pune Works) Motor Vehicles for transport of ten or more persons including the driver. 544000 (513125) 299251 (307279) 3.95 MW (21.41 (334.95 MW) 197402 (95546) 8970 (7325) 13001 (10715) 31958127 kWh (35061305) kWh 322. mechanised material handling and bridging equipment. 8. chassis fitted with engine for motor vehicles (Uttarakhand Works) Diesel Engines for Industrial and Marine applications S. Nos. 7..15] Quantitative information in regard to installed capacity and the goods manufactured by the Company : Unit of measurement 1. Tonnes 5.000 nos. In addition to the above.76) On double shift basis for all plants (except Uttarakhand plant for which capacity is on three shift basis) including capacity for manufacture of replacement parts as certified by the management and relied upon by the Auditors. (Sanand Works) (c) Motor Cars & other Motor Vehicles for transport of less than 10 persons. chassis fitted with engine for motor vehicles (Lucknow Works) Motor Vehicles for transport of ten or more persons including the driver. 2. Pune works is 612. other than those principally designed for the transport of persons or goods.000 nos. the licensed capacity for Jamshedpur works is 132. & Uttarakhand works is 500.Schedules forming part of the Profit and Loss Account “16” [Item no. etc. special purpose motor cars: 350. jeep type vehicles & station wagons. On road automobiles having four or more wheels such as light. 500000 (210000) *** *** 12000 (12000) 21. containers. Truck and Bus Bodies: 5000 nos.000 nos. in respect of item (1) to (4) above. passenger cars and chassis thereof (Jamshedpur Works) Motor Vehicles for transport of ten or more persons including the driver. As per Industrial Entrepreneurs Memoranda (IEM). motor vehicles for transport of goods. motor vehicles for transport of goods. G. Iron Castings Power Generation Manufactured Components for Sale **** * ** *** **** Rupees crores Installed capacity* Actual production ** Nos.000 nos. Lucknow works is 192. These are manufactured against spare capacity under (1) and (2) above. tactical floating bridges and ferries. jeep type vehicles. motor cars and other motor vehicles for transport of persons. Nos. a) Special Purpose Motor Vehicle. 126000 (108000) 89215 (64396) 2. motor vehicles for transport of goods. NOTE : 1. jeep type vehicles & station wagons. bullet proof vehicles.000 nos. Nos. (Dharwad Works) (b) Motor Cars & other Motor Vehicles for transport of less than 10 persons. the Company holds following industrial licenses / IEM for which there is no production during the year.. Nos. Automotive equipment for various defence applications such as different types of armoured vehicles. 6. heavy tank carriers. high mobility vehicles. 90000 (30000) 34893 (21295) 4. In addition to the above. (# Application for renewal of Industrial Licence is under process with Government of India). medium and heavy commercial vehicles. mine protected vehicles.

25 (iii) Capital goods (iv) Spare Parts for sale (v) Jaguar and Land Rover Vehicles and Spare Parts for Sale (vi) Other items 3.06 5.13 crores)] (ii) Income from transfer of technology 2008-2009 1921.55 10. Bhutan and local sales eligible for export incentives and exchange differences (net) . value of imports (i) (ii) Raw Materials and Components Machinery spares and tools 1189. 90 .89 33.33 374. the Company has taken the view that spares and components as referred to in Clause 4D(c) of Part II of Schedule VI covers only such items as consumed directly in production. in crores) “17” [Item no.29 19180.61 1212.82 94.48 2.07 861. 41.16 20. C.65 44.43 138.01 crores (2008-09 gain of Rs.31 1259. value of goods exported [including sales through Export House.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Profit and Loss Account (Rs. (a) Value of imported and indigenous raw materials and components consumed : (i) Imported at Rupee cost (ii) (b) Indigenously obtained Percentage to total consumption : (i) (ii) Imported Indigenously obtained % % 5.F.31 (iii) Profit on sale of investment (iv) Interest and Dividend 2.99 79.48 1119.58 2206.83 91.I.35 34.loss of Rs. 15] Information regarding exports and imports and other matters : 2009-2010 1.O. 36.46 944. Earnings in foreign exchange : (i) F.18 Note : In giving the above information.B.94 94.50 6. Exports to Nepal.37 15274.

684 10. The particulars of dividends declared during the year and payable to non .251 43.30 5.60 88.59 0.240 8 2. unserviceable items.51.339 1. etc.18 1484.281 7.99 15. Nos.90 20392.86.93 43.111 1.) 2009-2010 4.77.309 Value 717. in crores) “17” [Item no. 15] Information in regard to raw materials and components consumed : 2009-2010 Unit of Measurement Tonnes Tonnes Tonnes Tonnes Tonnes Tonnes Kilo liters Tyres. Quantity 1.280 69.60 2008-2009 Quantity 1.55.56.372 53.71 13.418 7. crores Rs.13 110.44 216.53 12986.896 9.08 0.Schedules forming part of the Profit and Loss Account (Rs. 15] (contd.692 40.647 12.53. Expenditure in foreign currency (subject to deduction of tax where applicable) : (i) Technical Know-how fees (ii) Interest (iii) Consultancy / Professional charges (iv) Payments on Other Accounts [including Exchange differences (net)] Remittances in foreign currencies for dividends : The Company does not have complete information as to the extent to which remittances in foreign currencies on account of dividends have been made by or on behalf of non-resident shareholders.44.002 Value 603. 91 . (ii) (iii) “18” [Item no.14 980.04. Nos.64 150.922 216.68 Steel Steel Tubes Non-ferrous alloys/metals Ferro Alloys Steel Melting Scrap Paints.22 113.024 45.829 76.34 2008-2009 160. Tubes and Flaps Engines Other components Nos.26 29.452 14.18 43.40 1549.79 140.50 1238.69 217. Nos. Nos.32 40.65 6. Rs. The figures of other components is a balancing figure based on the total consumption shown in the profit and loss account. crores 7.59 152.635 1.67 144. Oils and Lubricants Note : The Consumption figures shown above are after adjusting excesses and shortages ascertained on physical count.85.59 74.56 16244.resident shareholders for the year 2008-09 are as under : (i) Number of non-resident shareholders a) For 2008-09 b) For 2007-08 Number of shares held by them a) For 2008-09 b) For 2007-08 Gross amount of dividend a) For 2008-09 b) For 2007-08 Nos.205 30 3.73 171.32 16187.

872 34. 1956 Balance Sheet Abstract and Company’s General Business Profile: I.50.86.74.99.69. Registration Details: Registration No State Code Balance Sheet Date II. 92 . (ITC Code) Product Description 8702 to 8708 except 8707 Chasis and Vehicles for transport of goods and passengers.131) 57.64.400 50.46.00.during the year consequent to GDS issue and conversion of Foreign Currency Convertible Notes (FCCN) into Ordinary Shares.035 8.): (i) (ii) Ordinary Share ‘A’ Ordinary Share 42.16.401 22. Share Capital of the Company has increased by Rs 56.48.26.05.61.26.103 (Amount in Rs.39.33.43.82.83.33.95.030 16.69.60.423 2. Performance of Company (Amount in Rs.47. including motor car and parts thereof.03.Sixty-fifth annual report 2009-10 Tata Motors Limited Additional Information as required under Part IV of Schedule VI to the Companies Act.985 14.54. Capital Raised during the Year (See Note below) Public Issue Rights Issue Bonus Issue Private Placement III.Thousand) Turnover Total Expenditure Profit Before Tax Profit after Tax Earning Per Share .26. Ordinary Share ‘A’ Ordinary Share 150% 155% Generic Names of Three Principal Products/Services of Company (as per monetary terms) Item Code No.694 7.24.2010 Dividend Rate: (i) (ii) V.828 16.103 50.44.893 (5.300/.92.Thousand) 2.Thousand) Total Liabilities Total Assets Sources of Funds: Paid-up Capital Reserves & Surplus Secured Loans Unsecured Loans Deferred Tax Liability Application of Funds: Net Fixed Assets Investments Foreign Currency monetary item translation difference account Net Current Assets IV.37 42.88.47.449 2.079 1. Position of Mobilisation and Deployment of Funds (Amount in Rs.043 Nil Nil Nil 4520 11 31.87 37.Basic (Rs.

of the state of affairs of the Group as at March 31. The Consolidated Financial Statements include investments in associates accounted on the equity method in accordance with Accounting Standard 23 (Accounting for Investments in Associates in Consolidated Financial Statements) and the jointly controlled entities accounted in accordance with Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures) as notified under the Companies (Accounting Standards) Rules. (b) based on our audit and on consideration of the separate audit reports on individual financial statements of the Company.761. whose financial statements reflect the Group’s share of total assets (net) of Rs. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us by the Company’s Management. 692. 2010. We believe that our audit provides a reasonable basis for our opinion.09 crores upto March 31. evidence supporting the amounts and the disclosures in the financial statements. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit.201. 378. 2010. 46. 2010 of Rs. its aforesaid subsidiaries.43 crores. and of certain associates whose financial statements reflect the Group’s share of profit of Rs.Auditors’ Report on Consolidated Financial Statements TO THE BOARD OF DIRECTORS OF TATA MOTORS LIMITED 1. in our opinion. whose financial statements reflect total assets (net) of Rs. Subject to the matters referred to in paragraph 3(c) and read with our comments in paragraph 3(a) above: (a) we report that the Consolidated Financial Statements have been prepared by the Company’s management in accordance with the requirements of Accounting Standard 21 (Consolidated Financial Statements). 83. 117366W) N. (ii) in the case of the Consolidated Profit and Loss Account. 37.376. 4.14 crores and net cash outflows amounting to Rs. An audit also includes assessing the accounting principles used and the significant estimates made by the Management. total revenues of Rs. These financial statements are the responsibility of the Company’s Management and have been prepared on the basis of the separate financial statements and other information regarding components. 11. 2006. whose financial statements reflect total assets (net) of Rs. 1.71 crores up to March 31. 116. (c) As stated in note C(5).56 crores.15 crores and Group’s share of profit (net) of Rs. 2010.61 crores have been accounted in “Reserves and Surplus” in respect of a group of subsidiary companies. on a test basis. 2010. 52. and our opinion in so far as it relates to the amounts included in respect of these subsidiaries and associates is based solely on the reports of the other auditors. both annexed thereto. its subsidiaries and jointly controlled entities constitute “the Group”) as at March 31. We conducted our audit in accordance with the auditing standards generally accepted in India. 2006. of the cash flows of the Group for the year ended on that date. total revenues of Rs. 2010. of the profit of the Group for the year ended on that date.30 crores as at March 31. the actuarial losses (net) amounting to Rs.732. and (iii) in the case of the Consolidated Cash Flow Statement. joint ventures and associates and to the best of our information and according to the explanations given to us.83 crores as at March 31. 1. the Consolidated Financial Statements give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Consolidated Balance Sheet. 40. We have audited the attached Consolidated Balance Sheet of TATA MOTORS LIMITED (“the Company”).71387) Mumbai: May 27. total revenues of Rs. are incorporated in the consolidated financial statements based on management’s estimates and are not audited by their auditors. the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement of the Group for the year ended on that date. 3.78 crores (negative) as at March 31. as well as evaluating the overall financial statement presentation. 47. whose financial statements reflect the Group’s share of profit for the year ended March 31. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 2010.44 crores and net cash inflows amounting to Rs. (b) We did not audit the financial statements of certain subsidiaries.82 crores and net cash inflows amounting to Rs. 4. (a) Attention is invited to Note k (i) under Significant Accounting Policies. 2010 93 . 163.42 crores and financial statements of certain associates. the financial statements of certain subsidiaries. the financial statements of a joint venture. An audit includes examining. As stated in the note. 2010. VENKATRAM Partner (Membership No.35 crores for the year then ended and Group’s share of loss (net) of Rs. 2. C(1) and B(6) of Schedule 14. For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. its subsidiaries and jointly controlled entities (the Company.722. Accounting Standard 23 (Accounting for Investment in Associates in Consolidated Financial Statements) and Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures) as notified under the Companies (Accounting Standards) Rules.

08 42267.97 23980. Page 110] DEFERRED TAX LIABILITY [Note A (7) (a) & (b).16 8140. 12. 5. May 27.83 34413.02 32120.44 636.10 APPLICATION OF FUNDS 7.38 33269.52 30438.35 34973.33 35192. Page 110] FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET) [Note A (1).17 7 8 9 10 103 103 103 104 11 12 104 104 14.60 7635.50 21268.05 25200. Page 110] TOTAL FUNDS EMPLOYED 5 101 64851.10 105 110 For and on behalf of the Board CARL-PETER FORSTER Managing Director & Group CEO R GOPALAKRISHNAN P M TELANG N N WADIA Managing Director . 9.33 3718.Sixty-fifth annual report 2009-10 Tata Motors Limited Consolidated Balance Sheet as at March 31.48 213. 2010 Schedule SOURCES OF FUNDS 1.51 (Rs.86 4121.60 45383.33 7643. LOANS AND ADVANCES Interest accrued on investments Inventories Sundry Debtors Cash and Bank Balances Loans and Advances CURRENT LIABILITIES AND PROVISIONS (a) Current Liabilities (b) Provisions NET CURRENT ASSETS [(12) LESS (13)] MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) TOTAL ASSETS (NET) BASIS OF CONSOLIDATION AND SIGNIFICANT ACCOUNTING POLICIES NOTES TO BALANCE SHEET 58469.34 12816.64 34077.03 13705. 3. MINORITY INTEREST LOAN FUNDS (a) Secured (b) Unsecured FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT (NET) [Note A (1).05 5426.18 565. Page 111] INVESTMENTS DEFERRED TAX ASSETS [Note A (7) (a) & (b). 191. 2009 514.62 10950.31 8068.15 1579. SHAREHOLDERS’ FUNDS (a) Share Capital (b) Reserves and Surplus 2.48 2. (a) (b) (c) (d) (e) 13.64 403. May 27.12 425.79 86.59 5940.03 13902. GOODWILL (On Consolidation) [Note A (8). 10.65 42267.50 41720.88 8206. 11. 18. 6.Depreciation (c) Net Block (d) Capital Work-in-Progress 8. 2010 94 RAVI KANT Vice-Chairman Page 99 99 570.65 1257.00 35733.33 3422. FIXED ASSETS (a) Gross Block (b) Less .81 45383.85 949.60 4794.55 32685.97 2. 17.83 808. Page 110] CURRENT ASSETS. 2010 Directors J J IRANI For DELOITTE HASKINS & SELLS Chartered Accountants RATAN N TATA Chairman N VENKATRAM Partner Mumbai. 15.02 38506.18 8743.87 6 102 2219.40 269. 13 104 14 As per our report attached .India Operations S M PALIA C RAMAKRISHNAN R A MASHELKAR Chief Financial Officer N MUNJEE H K SETHNA Company Secretary S BHARGAVA V K JAIRATH Mumbai. 16.17 1 2 3 4 100 100 21290. in crores) As at March 31.33 10533.68 42529.36 4.32 15280.03 7191.43 11312.

Consolidated Profit and Loss Account for the year ended March 31, 2010
Schedule INCOME 1. SALE OF PRODUCTS AND OTHER INCOME FROM OPERATIONS A (1) LESS: EXCISE DUTY 2. DIVIDEND AND OTHER INCOME A (2) Page 97 95567.42 3048.17 92519.25 1793.12 94312.37 88497.59 (4592.50) 83905.09 10407.28 498.20 3887.13 2239.71 3782.24 (84.47) 344.07 3522.64 (1005.75) 2516.89 (30.33) 84.50 2571.06 (1553.66) 1017.40 (Rs. in crores) 2008-2009 74093.31 3212.36 70880.95 798.96 71679.91 73323.28 (4638.83) 68684.45 2995.46 347.75 2506.77 1930.90 (1789.96) 339.29 (2129.25) (335.75) (2465.00) 11.48 (51.73) (2505.25) 1764.12 (741.13) 17.59 311.61 35.38 267.80 138.20 35.72 6.23 (1553.66) (741.13)

97 98

EXPENDITURE 3. MANUFACTURING AND OTHER EXPENSES B 4. EXPENDITURE TRANSFERRED TO CAPITAL AND OTHER ACCOUNTS PROFIT BEFORE DEPRECIATION, INTEREST, AMORTISATION, EXCEPTIONAL ITEMS AND TAX 5. PRODUCT DEVELOPMENT EXPENDITURE 6. DEPRECIATION / AMORTISATION 7. INTEREST AND DISCOUNTING CHARGES [Note B (1), Page 114 ] PROFIT / (LOSS) BEFORE EXCEPTIONAL ITEMS AND TAX 8. (a) EXCHANGE LOSS / (GAIN) (NET) ON REVALUATION OF FOREIGN CURRENCY BORROWINGS, DEPOSITS AND LOAN GIVEN (b) OTHERS [Note C (4), Page 119] PROFIT / (LOSS) BEFORE TAX 9. TAX EXPENSE [Note A (7)(d), Page 110] PROFIT / (LOSS) AFTER TAX 10. SHARE OF MINORITY INTEREST 11. SHARE OF PROFIT / (LOSS) IN RESPECT OF INVESTMENTS IN ASSOCIATE COMPANIES PROFIT / (LOSS) FOR THE YEAR 12. BALANCE BROUGHT FORWARD FROM PREVIOUS YEAR AMOUNT AVAILABLE FOR APPROPRIATION 13. APPROPRIATIONS (a) Tax on Interim Dividend by subsidiaries (including Group’s share of subsidiaries’ dividend tax) (b) Proposed Dividend (c) Tax on Proposed Dividend (including Group’s share of subsidiaries’ dividend tax) (d) Debenture Redemption Reserve (e) General Reserve (f ) Special Reserve (g) Earned Surplus Reserve (h) Restricted Reserve (i) Balance carried to Balance Sheet 14. EARNINGS PER SHARE [Note B (3), Page 118] I. Ordinary Shares (a) Basic (b) Diluted II. ‘A’ Ordinary Shares (a) Basic (b) Diluted BASIS OF CONSOLIDATION AND SIGNIFICANT ACCOUNTING POLICIES NOTES TO PROFIT AND LOSS ACCOUNT

859.05 142.80 500.00 520.32 9.72 2.97 0.39 (1017.85) 1017.40

Rupees Rupees Rupees Rupees 14
J J IRANI

48.64 44.65 49.14 45.15

(56.88) (56.88) (56.88) (56.88)

15. 16.

105 114

As per our report attached to the Balance Sheet For DELOITTE HASKINS & SELLS Chartered Accountants RATAN N TATA Chairman N VENKATRAM Partner Mumbai, May 27, 2010 RAVI KANT Vice-Chairman

For and on behalf of the Board CARL-PETER FORSTER Managing Director & Group CEO R GOPALAKRISHNAN P M TELANG N N WADIA Managing Director - India Operations S M PALIA C RAMAKRISHNAN R A MASHELKAR Chief Financial Officer N MUNJEE H K SETHNA Company Secretary S BHARGAVA V K JAIRATH Mumbai, May 27, 2010 Directors 95

Sixty-fifth annual report 2009-10
Tata Motors Limited

Consolidated Cash Flow Statement for the year ended March 31, 2010
2009-2010 A. Cash flow from Operating Activities Profit / (Loss) for the year Adjustments for: Depreciation (including Lease Equalisation adjusted in income) Loss on sale of assets (net) (includes assets scrapped / written off ) Relocation expenditure etc. Profit on sale of controlling stake in a subsidiary Profit on sale of investments (net) Reversal of provision for diminution in value of investments (net) Impairment of Goodwill Provision for inter corporate deposits (net) Gain on buy back of Foreign Currency Convertible Notes (FCCN) and Convertible Alternative Reference Securities (CARS) Share of (Profit) / Loss in respect of investments in associate companies Share of minority interest Tax expenses Interest / Dividend (net) Exchange difference Amortisation of Miscellaneous Expenditure / Employee Separation Cost Operating Profit before Working Capital Changes Employee Separation Cost of subsidiary companies Adjustments for: Trade and other receivables Inventories Trade and other payables Vehicle / loans and hire purchase receivables Cash generated from Operations Direct Taxes Paid (net) Net Cash from Operating Activities B. Cash Flow from Investing Activities Purchase of fixed assets Sale of fixed assets Investments in associate companies Investments in Mutual Fund (made) / sold (net) Investment in JLR Business (consideration for IPR, Halewood plant and JLR Business) Investment in Subsidiary Companies Investments - others Proceeds from Sale of stake in Telcon Decrease in Investments in retained interests in securitisation transactions Sale of Investments in associate company Sale / redemption of investments - others Deposits of Margin Money / Cash Collateral Realisation of Margin Money / Cash Collateral Fixed deposits with scheduled banks made Fixed deposits with scheduled banks realised Increase in restricted deposits with scheduled banks Interest received Dividend received from associates Dividend / Income on investments received Increase in short term Inter-corporate deposit Net Cash used in Investing Activities Cash Flow from Financing Activities Premium on redemption of FCCN (including tax) Expenses on Foreign Currency Convertible Notes (FCCN) conversion / Non-Convertible Debentures Proceeds from issue of shares held in abeyance Proceeds from issue of shares by Joint venture Proceeds from GDS issue (net of issue expenses) Proceeds from long term borrowings Repayment of long term borrowings (Decrease) /Increase in short term borrowings (net) Proceeds from Rights issue of shares Proceeds from Fixed Deposits Repayment of Fixed Deposits Proceeds from issue of shares to minority shareholders Dividend paid (including Dividend Tax) Dividend paid to minority shareholders Interest paid [including discounting charges paid, Rs. 668.27 crores, (2008-09 Rs. 508.93 crores)] Net Cash from Financing Activities Net Increase / (Decrease) in Cash and cash equivalents Cash and cash equivalents as at March 31 (Opening Balance) * # Add/(Less) : Cash and Bank balance taken over on acquisition of stake in subsidiaries / joint venture Add/(Less) : Cash and Bank balances on sale of controlling stake of a subsidiary Add/(Less) : Translation adjustment on opening cash and bank balance of foreign subsidiaries Add/(Less) : Translation adjustment on reserves of foreign subsidiaries Add/(Less) : Exchange fluctuation on FCCN / CARS proceeds kept outside India and on foreign currency bank balances Cash and cash equivalents as at March 31 (Closing Balance) * # * Excludes Cash Collateral Rs. 1786.07 crores (as at March 31, 2009 Rs. 1729.58 crores, as at March 31, 2008 Rs. 1594.07 crores) # Excludes Fixed / restricted deposits with scheduled banks Rs. 427.29 crores (as at March 31, 2009, Rs. 10.16 crores, as at March 31, 2008 Rs. 8.04 crores) Previous year’s figures have been restated, wherever necessary, to conform to this year’s classification. 2571.06 3882.62 74.48 67.17 (1057.92) (693.62) 40.00 (0.16) (84.50) 30.33 1005.75 2305.54 (263.05) 77.59 5384.23 7955.29 (4342.63) (1244.53) 8709.11 3121.95 (521.10) 2600.85 10556.14 (1229.21) 9326.93 (8475.43) 22.19 (1.44) (979.55) (56.30) (10.14) 1159.50 51.38 958.56 (613.95) 557.49 (412.20) 2.15 (7.08) 237.59 9.47 31.51 (6.80) (7533.05) (150.79) 0.05 17.68 1667.47 26680.86 (21072.65) (3443.42) 2039.11 (75.96) 54.50 (346.24) (3.33) (2855.34) 2511.94 4305.82 2381.60 3.41 (45.01) (60.67) (91.13) 35.94 6529.96 (Rs. in crores) 2008-2009 (2505.25) 2502.27 13.91 (718.16) (1.96) (5.97) (50.74) 51.73 (11.48) 335.75 1852.06 1309.49 4.93 5281.83 2776.58 (84.08) 655.96 693.27 (2987.73) (1638.50) 294.45 (1344.05) 1348.45 (598.62) 749.83 (9970.78) 74.91 (33.22) 843.56 (10765.19) (138.54) (2.23) 8.94 162.70 852.76 (1368.64) 1233.13 (0.16) (1.96) 239.71 29.81 73.96 (55.20) (18816.44) (0.05) (0.91) 19598.62 (8241.42) 4210.56 4109.66 1232.47 0.34 (697.37) (62.11) (2386.65) 17763.14 (303.47) 2231.06 1280.52 (162.31) (653.66) (10.54) 2381.60

C.

As per our report attached to the Balance Sheet For DELOITTE HASKINS & SELLS Chartered Accountants

RATAN N TATA Chairman

N VENKATRAM Partner Mumbai, May 27, 2010 96 RAVI KANT Vice-Chairman

For and on behalf of the Board J J IRANI CARL-PETER FORSTER Managing Director & Group CEO R GOPALAKRISHNAN P M TELANG N N WADIA Managing Director - India Operations S M PALIA C RAMAKRISHNAN R A MASHELKAR Chief Financial Officer N MUNJEE H K SETHNA Company Secretary S BHARGAVA V K JAIRATH Directors Mumbai, May 27, 2010

Schedules forming part of the Consolidated Profit and Loss Account
(Rs. in crores) “A”[Item no. 1 & 2] 2009-2010 SALE OF PRODUCTS AND OTHER INCOME 1. Sale of products and other income from operations (a) (b) Sale of products / Services (Note 1 below) Income from Hire purchase / Loan contracts (Note 2 below) Sales / Income from Operations (c) Miscellaneous income (Note 3 below) 93611.20 1330.42 94941.62 625.80 95567.42 2. Dividend and other income (Note 4 below) 1793.12 97360.54 72502.12 1022.74 73524.86 568.45 74093.31 798.96 74892.27 2008-2009

2009-2010 Notes: (1) Sale of products / Services includes : (i) (ii) (2) exchange gain /(loss) (net) net of variable marketing expenses of some of subsidiaries 106.24 (5308.88)

2008-2009

(610.63) (4883.31)

Income from Hire purchase / Loan contracts includes : (i) (ii) Income on securitisation / sale of receivables of Loan contracts (net) Interest income on Loan contracts (net) 151.33 1098.32 3.09 955.62

(3)

Miscellaneous income include : (i) Gain on buyback of Foreign Currency Convertible Notes (FCCN) and Convertible Alternative Reference Securities (CARS) (ii) Income from Infrastructural Services provided in vendor park 50.74 56.57

(4)

Dividend and other income includes : (i) (ii) Profit on sale of current investments Profit on sale of controlling stake in a subsidiary (Note (C)(3)(b), Page 119) 693.62 1057.92 3.26 714.90

(iii) Profit on sale of other long term investments (net)

97

(e) Power and fuel (f ) Rent (g) Rates and taxes (h) Insurance (i) Publicity (j) Incentive / Commission to dealers (k) Other expenses ( Note 1 below ) Excise duty on change in Stock-in-trade Change in Stock-in-trade and Work-in-progress: A.04 73323.42 17284.56 786. port charges.57 9130. transportation.97 214.28 2008-2009 2233.99 6865.71 181. 7.66 874.05 278.82 1011.30 95.18 595.19 277.33 7925.44 57.34 10323.90 7297.68) 370.91 118.88 13.29 45.20) (665.58 793.95 1044.87 6.46 8223.90) 1044.08 1332.99 2050.57) 32. Closing Stock (i) Work-in-progress (ii) Stock-in-trade 2009-2010 8538. wages and bonus (b) Contribution to provident and other funds (c) Workmen and staff welfare expenses 5.92 2974.15 1702.29 8751.59 2009-2010 Notes : (1) Other expenses include: (i) Warranty Expenses (ii) Computer Expenses (iii) Lease rentals in respect of plant and machinery (iv) Provision and write off of sundry debtors. Opening Stock (i) Work-in-progress (ii) Stock-in-trade Stock acquired on acquisitions (i) Work-in-progress (ii) Stock-in-trade Translation difference Sale of controlling stake in a subsidiary (i) Work-in-progress (ii) Stock-in-trade B. Purchase of products for sale.29 (1017.36 (1148.77 998. 2.49 86.08 0.02 7572.40 587.45 106.23 799.67) 88497.70 592.56 8616.71 974.22 40253. vehicle loans and advances (net) (v) (Reversal) / Provision towards residual risk on vehicles sold (vi) Exchange (Gain) / Loss (vii) Loss on sale of assets (viii) Loss on assets scrapped / written off 2524. 3] MANUFACTURING AND OTHER EXPENSES 1.73 45. spare parts and tools consumed (b) Freight. etc.41 17500.38 152. etc.77 1058.64 2633.64 6426.09 102. Expenses for manufacture.02 7572.80 247.49 145.57 1995.38 559.45 (331. machinery.89 30. Payments to and provision for employees (a) Salaries.58 5. in crores) “B” [Item no.42 765.52 388.33 593.56 36.19 2008-2009 6978.67 586. administration and selling: (a) Stores.27 704.63 161.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Profit and Loss Account (Rs.96 8725.88 (439.55 268.52 54105. 98 .56 8616.13 689.89) 29.33 686. (c) Repairs to buildings (d) Repairs to plant.90 9222.26 (58.54 878. Processing charges 4. etc. Consumption of raw materials and components 3.

01 1102. 0.42 0.75 (87. Nil (2008-09 Rs.85) (1553.00. 2009 700.15 0.44 152.83 64.39 5764.37 As at March 31.00.60 (Rs.76 1529.39 5373.44 152.51) (1457.01 29.18 10.57 126.00 449.52 230.28 336. 2009: 30.82 140.35 0.72 75.170 6.81 602.85 560. 2009: 20.73 2269.80 55. 2009: 6.Schedules forming part of the Consolidated Balance Sheet SHARE CAPITAL Authorised: 70.15 334.88 crores (2008-09 includes (net) exchange loss of Rs.59 178.00 0. 10 each (As at March 31.44 0.61) (1457.96 114. Nil (2008-09 Rs. 10 each (As at March 31.40 208.67 (iii) (iv) 75.1(a)] As at March 31.35 3617.82 crores (2008-09 Rs.29 185.000 shares) 700. 2009 5366.98.00 3000.51 (87.28 358.41.08 87.76.88 5426.Ordinary Shares RESERVES AND SURPLUS (a) (b) (c) (d) (e) (f ) (g) (h) (i) (j) (k) (l) (m) (n) Securities Premium Account [Note (i) and (ii) below] Capital Redemption Reserve Capital Reserve (on consolidation) [Note (iii) below] Debenture Redemption Reserve Amalgamation Reserve Special Reserve Revaluation Reserve [Note (iv) below] Hedging Reserve Account Pension Reserve [Note (v).69 (2189.33 1128.59 5366. 2009: 44.21) 4582. 34.44 238.00.000 20.31 crore)] (h) Exchange difference on Provision for premium on redemption of FCCN / CARS [net of tax Rs.39) 16.48 575.69 99. stamp duty and other fees on Non-Convertible Debentures [net of tax Rs. Page 100] Reserve on Research and Human Resource Development Restricted Reserve Translation Reserve [Note (viii).00.28 2. 29. 10 each (As at March 31.73 2585.53 2205.69 67.Ordinary Shares Share Forfeiture .05 570.00.69 0.52 8.00.00.000 30.76 0.18 514.31 1537.05 “2” [Item no.80 9.51) 481.91 4075.00 3900.374 Ordinary shares of Rs.01 365.000 As at March 31.59 Notes: (i) (ii) The opening and closing balances of Securities Premium Account are net of calls in arrears of Rs.05 0.84 746.08 238.76 22.64 149.47 crores)] (j) Provision for premium on redemption of Non-Convertible Debentures / CARS / FCCN and withholding tax thereon [net of tax Rs. Changes in Revaluation Reserve : (a) Depreciation on revalued portion of assets taken over on amalgamation of Telco Dadajee Dhackjee Ltd (b) Revaluation of Jaguar and Land Rover assets (c) Depreciation on revalued portion of Jaguar and Land Rover assets 2009-2010 Additions Deductions 2008-2009 Additions Deductions Less: Calls in arrears .89 336.65 99.83 7.21) 4075.97 6.56 0.41.69 99.63.05 514.00 3900.55 0.05 114.01 0.28 2.00 267.40 1976.42 99.38 64. Page 100] Earned Surplus Reserve [Note (vii).25 6547.39) 8653. 56.42 238.00 Issued and subscribed: 50.91 5332.Nil)] (k) Others The addition to Capital Reserve represents exchange gain of Rs.52 3699.00. 10 each fully paid (As at March 31.54 0.25 (1017.22 2.11 1764. 2009: 70. Page100] Additions 3617. Page 100] Deductions/ Adjustments 2269.81.80 4037.73 110.80 25.29 78.20 2. in crores) “1” [Item no. 2010 Ordinary shares of Rs. Page 100] General Reserve [Note (vi).66) 7635.75 25. 10 each fully paid (As at March 31.01 4037.659 shares) ‘A’ Ordinary shares of Rs.57 110.84 99 .39 (2749.00.31 2.655 shares) 506.00.18 570.00.88 500.00 200.05 68.73 6980.98 18.13 6980.28 93.37 4010.15 602.1(b)] As at March 31.23 0.18 4086.00 200.67 29.24 crores)] (i) Reversal of provision for premium on conversion / redemption of FCCN / CARS [net of tax of Rs.05 0.000 shares) ‘A’ Ordinary shares of Rs.86 (o) Profit and Loss Account [Note (ix).65 1.42 75.32.51) (1722.80 crores) on opening balances in respect of foreign subsidiaries.92) (2189.08 0.01 514.000 shares) Convertible Cumulative Preference shares of Rs.51 (87.01 570.03 crore Changes in Securities Premium Account : (a) Premium on shares issued on conversion of Foreign Currency Convertible Notes (FCCN) and on shares issued which were held in abeyance out of Rights Issue of shares (b) FCCN Conversion expenses (c) Premium on issue of Global Depository Shares (GDS) (d) Premium on Rights issue of shares (e) GDS and FCCN issue Expenses (f ) Rights issue expenses (g) Brokerage. 9.67 0.75.62 7.00 3000.51 crores (2008-09 Rs.37 138. 2010 6714.40 152.40 0. 0.00. 26.05 0.52 208.22.72 35.

1(b)] (contd.00 10229.05 520.13 746.74 619. This reserve may not be utilized for cash dividends but may only be used to off-set against future deficit. Overdraft Accounts and Buyers line of credit (short term) (iii) Other Loans* (e) Loan from Others * Includes Loan from European Investment Bank “4” [Item no. Fiat India Automobiles Ltd and Rs.20 6. or may be transferred to capital stock of TDCV.53 crores)] (b) Impact on account of adoption of Notification amending AS 11 [net of tax Rs. (TDCV) under the Korean Commercial Code is required to appropriate annually at least 10% of cash dividend declared each year to a legal reserve until such reserve equals 50% of capital stock of TDCV. Page 119).73 Additions 959.96 37.Convertible Debentures (b) Loans from Financial Institutions / Banks (c) Sales Tax Deferment Loan (d) From Banks: (i) Buyers line of credit (long term) (ii) Loans.79 (Rs.00 4161. 485. Tata HAL Technologies Ltd. 0. Page 108) (a) Actuarial Losses (b) Movement in restriction of pension assets (c) Foreign Currency Translation Changes in General Reserve : (a) Difference in fair value of forward contracts on application of Principles of Hedge Accounting under Accounting Standard (AS) 30 [net of tax Rs.87 142.20 1895.33 As at March 31. 15.35 5417. 2009 Rs.05 crores) of the Joint Venture. Nil (2008-09 Rs. (viii) Translation Reserves represents conversion of balances in functional currency of foreign subsidiaries (net of minority share) and associates.36 crores (as at March 31.69 (vi) 55. Page 107) (ix) Profit and Loss Account balance is after considering the proportionate share of post acquisition loss of Rs.97 10468. Cash Credit. if any.69 21290.00 94.18 crores) of the Joint Venture.94 21268.85 (vii) Tata Daewoo Commercial Vehicle Company Ltd.80 1548. Nil (2008-09 Rs.53 291.3 (a)] As at March 31.50 crores)] (c) Amount paid (net) towards indemnity relating to business amalgamated in prior year (d) Impact of amount written off by associate against Securities Premium Account (e) Impact of amount written off by subsidiary against Securities Premium Account (f ) Amount transferred from Special Reserve (g) Amount transferred from Profit and loss account 481.14 4522. 2009 Rs.22 169.64 138.33 Deductions 644. 3.80 crore (as at March 31.96 67.20 1576.50 - 100 .98 149.72 24.3(b)] As at March 31.73 13705.57 991.09 55.50 8.48 (Rs.40 540.Unsecured (a) Loans from Banks (b) Commercial Paper (c) Inter Corporate Deposit / Call Deposit (d) Bridge Loan from banks (e) Foreign Currency Convertible Notes (FCCN) / Convertible Alternative Reference Securities (CARS) (f ) Fixed Deposits: (i) From Public (ii) From Shareholders (g) Loans from others 3007.20 138. 349.69 2585.33 481. “3” [Item no.50 10211.39 2925.34 2833.55 209.05 840. in crores) As at March 31. (Note 2 (f ) (i) (3). 2010 LOANS . 2009 917.Secured (a) Privately placed Non . 2010 LOANS . 1.60 102.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Balance Sheet “2” [Item no.63 13902.32 575. 2009 3526.) 2009-2010 Additions (v) Change in Pension Reserve : (Refer note k(i). (Note (c) (1).03 2300.26 1128.39 940.86 2333. in crores) 2008-2009 Deductions 2585.37 4.

02) 0.02 5.01 0.18 1552.31 crores (as at March 31. (d) Rs. 838.02 77.86 592.05 Total 58469. Rs 73.51 crores (as at March 31.33 14611.19) (3756. (ii) Additions / Adjustments include : (a) Decapitalisation of exchange gain (net of loss on derivative contract) of Rs 308.77 Plant.73 381.04 11326.31) 0.52 73.00 crores and Rs.58 21.Depreciation 2009.14 155.90 25. (c) depreciation of Rs.91 977.2010 on acquisitions Accumulated up to Note (vi)] during Depreciation March 31 2009-2010 2010 [Note (iii)] [Note (iii) and (vi) ] 14. 294.31 Vehicles and Transport 154.02 crore and Rs.34 Buildings 6625. 101 .05 Net Book Value as at March 31.68 24.74 crores.0.83 58469.47 720. 131.93 1988.50 6848.83) (154.13 516.34 144.88 653. 2010 Depreciation Accumulated Translation Accumulated for the year Depreciation Adjustment. 7] FIXED ASSETS Cost as at March 31.09 2706.52 28745.47 940.38 12975. 2009 Rs.34 crore) and net block of Rs.66 5.07 0. resulting in Revaluation Reserve of Rs.58 1.02 10533.82 (9.08) (11. (b) lease equalisation of Rs.52 33269.75 2706.66) (65.47 852.40 crores.24 359.46) (3275. 4.238.20 crores.65 29. 2009 Rs 403. 2009 Rs. 2009 Acquisitions Additions / Translation Deductions/ Adjustments Adjustment Adjustments [Note (ii) (a)] [Note (ii) (b)] Cost as at March 31.88 849.19) (11.04 42157.02 crores) being translation adjustment for foreign subsidiaries.13 Software 977.20 crores (as at March 31.09 [Note (i)] 9510. 0. 58.19 24769.15 458.42 77.76 49.37 168.11 2889. 159.20 6.65 1223.54 crores).78 16.31 25200.97 crores. 726.91 (346. 0.82) (152. (b) advances for capital expenditure of Rs.45 7.17 Furniture.37) (582. 0. 2009 Rs.50 Product Development Cost 1552.01 252.74 28159.29 964.94 940.26 68.68 3.18 (48.32 1577. Fixtures and Office Appliances and Vehicles and Transport having Gross block of Rs 165.23 38.75 378.26 418.30 13997.53 2889.11 1.09 6.34 45.12 1290.19 5374.16 crores due to sale of controlling stake in Telco Construction Equipment Company Ltd.77 0.44 2689.64 43257.11 crore) respectively. Machinery and Equipment 42157.50 6633.15 [Note (v)] 130.13 1367.91 21.16) (182.30 0. 4062.65) (1581.73 514.04 0.63 crores (2008-09 Rs.13 crore and Rs.68 3887.10 2794.94 1445.23 71. 2009 Rs.66 74.65 45.05 25.24 80.08 612.13 2506.37 58.97) (66.89 3823.09 911.82 1176.07) (2.54 (46.49 crores) adjusted in lease rental income.47 Developed Technologies 940.14 1886. 4. Furniture.49 97.83 16.69) (2.15 398.34 24.50 411.76 2802.02 26.106.06 65.52 43.78 5776. 5.13 Trade Marks and Brand 2889.77 64.19 584.00 crores (as at March 31.91) (1882.13) (38.28 123.30 78. 2009 Rs 6.01 3.57 crore (as at March 31.04) 107.38 132.16 crores).15 57.11 26.06 17.35) (4746.72 0.67 617.53) (70.68 crores).34) (47.2009 Exchange loss Rs.72 81.33 35733.72 1349.20) (2938. page 119) (iv) Capital Work in Progress includes : (a) Product Development Cost Rs.44 2750.41 121. 2920.67 73.90 393. Rs.70 4.33 14.20) (285. (b) Consequent to sale of controlling stake in Telco Construction Equipment Company Ltd.43 684. The assets of the said subsidiary have been deleted from the gross block of Rs.12 77.58 32. (v) The Plant and Equipments taken on lease are under renewable secondary lease.64 1531.72 857.06 315.81 438.Schedules forming part of the Consolidated Balance Sheet (Rs in crores) “5” [Item No.45 37742. (e) an adjustment of Rs.22 34413.61 [Note (i)] Technical Know how 45. 3756.98) (32.23 648.16 crores (as at March 31.01 64851.08 4254.02) 137.57 0.49 1.35 Office Appliances 139.05 4.66 287.27 115.446. 2009 Rs.09) (1874. 51.44 crores (as at March 31.67 0.79 30438. (vi) Depreciation for the year and accumulated depreciation includes amortization.71) (109.67 30082. 261.28 883.98 81.96) (3866.54 13081.06 262.98 0.92 11.01 (0.00 crores) on revalued portion of gross block transferred / credited to Revaluation Reserve.53 36.21 crores.30 862.82) (3.24 154.26 crores). Page 119) (iii) Accumulated Depreciation includes : (a) an adjustment of Rs.65 6625.57 22. Machinery and Equipment.08 crores).73 465.33 8068.31 28645.81 6494.04 65.38 1748.74 4830.93 0.12 174.86 4.70 683. Fixtures and 964. (vii) Certain Fixed Assets of Jaguar and Land Rover have been revalued by a external valuer.03 4.35 43. (Note (C)(3)(c). 0.07 172.50 2.94) (38.35) 0. 167.92 Assets given on Lease 411.13 crore (as at March 31.85 Assets taken on Lease 174.35 109. held for disposal.59) (77. 2009 Rs.00 38506.43 624.63 121.53 2889.37 3743. (Note (C)(3)(c).48 crores (2008-09 capitalised exchange loss of Rs 459.66 132.24 148.14 [Note (i)] 137. Rs Nil and Rs.55 crores (as at March 31.48 22.69 63.05) (326.44 crores) on Assets transferred/sold/discarded during the year.33 (m) Capital Work In progress [Note (iv)] Notes: (i) Includes Plant.19 1.77 115. diminution in value of assets and write down of assets net of reversals.84 69. (c) exchange loss of Rs.96 411. 2010 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Land and Lease Hold Land 1577.12 2154.48 695.93 0.42 17.25 48. Rs 1.64 77. 1874.

53 (2) Book value of unquoted investments (other than in associates) 1330.00 24. Ltd. 9] INVESTMENTS (at cost) (A) In Associates (a) Carrying amount of investments in Associates (Note 7 below) [Including Rs.48 crores as on March 31.75 9.46 0.71 0.11 15. (formerly known as Hispano Carrocera S.34 1.00 6.20 99. Tata Hispano Carrocera S.47 0.57 Amount of Goodwill/ (Capital Reserve) in Original Cost (0.02 3.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Balance Sheet “6” [Item no.50 2.37 42.73 Carrying amount of Investments 209.00 49. during the tenor of the loan.20 crores represents cost of balance 40% held and share of post acquisition reserve of Rs.27 1. 44.43 crore) of Capital Reserve arising on acquisition of associates] (b) Fully paid Cumulative Redeemable Preference shares (Unquoted) (B) Others (I) Long Term Investments Quoted (a) Fully paid Ordinary/Equity shares (b) Fully paid Cumulative Compulsorily Convertible Preference Shares (c) Bonds Unquoted (a) Fully paid Ordinary/Equity shares (b) Fully paid Cumulative Redeemable Preference Shares (c) Fully Paid Non Cumulative Redeemable Preference Shares (d) Non Convertible Debentures (e) Optionally Convertible Debentures (f ) Bonds (g) Retained interest in securitisation transactions (II) Current Investments Quoted (a) Fully paid Ordinary/Equity shares (b) Investment in Securities Unquoted (a) Fully paid Cumulative Redeemable Preference Shares (b) Mutual Fund Less: Provision for diminution in value of Investments (Net) As at March 31.00 40. 2010 thereafter Associate. The Company has also given an undertaking to Citibank NA for non-disposal of its shareholding in TPI.43) (0.43 crore (as at March 31.) # Telcon Ecoroad Resurfaces Pvt.33 10.32 399.55 55.00 50.93 crores represents Reserves and Surplus from date of initial investment in Telco Construction Equipment Company Ltd. Jaguar Cars Finance Ltd Telco Construction Equipment Company Ltd. 56. 2009 Rs. between Hitachi Construction Machinery Co. Ltd (TES). @ Automobile Corporation of Goa Ltd. 2009 299.61 6.33 107. Page 119) Associate upto October 15.96 6.13 584. Singapore and Tata Engineering Services Pte. Name of the Associates No.00 90.38 231.02 3.99 49.00 40. 102 . 2010 are as follows: Sr.80 26.78 52.43) 2.47 1. Tata AutoComp Systems Ltd. Tata Precision Industries Pte.11 3. Subsidiary upto March 30.11 2. Ltd (TPI).00 5. (7) The particulars of investments in associate companies as of March 31.11) (2.80 (50.78 239.51 0.08 52.15 56. A.12 295. 2010).75 14.23 281.20 169.78 0.30 * * * ^ Share of loss restricted to the original cost of Investment as per the equity method of accounting for associates under AS -23 ‘Accounting for Investments in Associates in Consolidated Financial Statements’.0.35) 3.51 0.11) (3.93 0.59 8.00 2. a wholly owned subsidiary of TPI aggregating SGD 13.00 1064.25 21. 2010 584.00 26.A.57 1265. Shares of Telcon Construction Equipment Company Limited owned by the Company are under restriction for sale.33 6. 2010.57 (3) Market value of quoted investments (other than in associates) 360.33 2219.23 230.79 155.00 26.20 79. 80.38 111.62 2227.45 8. Ltd.01 0.77 Share of post acquisition Reserves and Surplus 119.85 552.51 236.67 99.37 49. 1) 2) 3) 4) 5) 6) 7) 8) 9) Tata Cummins Ltd. Associate upto March 30.00 275. assign or transfer for a period of 3 years from the date of the agreement. Singapore.90 49.00 Original Cost of Investment 90.87) 7.93 232.30 21.85 million (Rs.72) (63.20 crores) of Goodwill and net of Rs.19 1257.98 crores (as at March 31.71 11.28 2.99 21. NITA Company Ltd.00 77.47 77.25 299.40 Notes: (1) Book value of quoted investments (other than in associates) 283.15 5. 52. Ltd and the Company.34) (5. ** Total * ** @ # ^ Country of Incorporation India India Bangladesh Singapore Spain India India UK India Ownership Interest (%) 50.55 42.26 12. 2009.34 7. 155. (6) As per the shareholders agreement dated March 30.20 352.12 4.02 17. 2010 (Refer Note C(3) (b). thereafter subsidiary.43 (4) Investment in Mutual funds reinvested 8. 2009 Rs.00 (Rs.20 52.90 40. Singapore.51 80.08 (5) Tata Motors Ltd has given a letter of comfort to Citibank NA against credit facilities provided by the bank to Tata Precision Industries Pte.61 2.00 76.0.27 3. The original cost of Investments of Rs.67 0.08 1. in crores) As at March 31.81 (3.55 537.

56 1381.29 71. 12 (c)] As at March 31.32 # Includes : Cheques on hand Remittances in transit Includes : Restricted deposits As at March 31.Schedules forming part of the Consolidated Balance Sheet (Rs. 2009 194.56 233.02 7572.66 1044. 2010 INVENTORIES (a) Stores and spare parts (at or below cost) (b) Consumable tools (at cost) (c) Raw materials and components (d) Work-in-progress (e) Stock-in-trade (f ) Goods-in-transit (at cost) 221. in crores) “7” [Item no.34 264.18 As at March 31.52 66. 2009 35.41 897.63 7191.92 11312. As at March 31.61 * 103 .86 “9” [Item no.90 398.46 7451. 2009 286.30 1786.54 6027. 2010 SUNDRY DEBTORS (a) Over six months : (unsecured) (b) Others : (unsecured) Less: Provision for doubtful debts 242. 2010 CASH AND BANK BALANCES (a) Cash on hand (b) Current accounts with Banks # (c) Short term deposits with Banks * (d) Margin Money / Cash Collateral with Scheduled Banks 32.08 4980.06 22.90 419. 12 (b)] As at March 31.23 5. (d) and (e) above are valued at lower of cost and net realisable value.64 1729.29 434.58 4121.07 8743.12 2108.73 1834.81 260.67 998.60 185.52 4694. 12 (d)] As at March 31.35 7209.20 259.03 Note: Items (c).74 4794.00 248.60 “8” [Item no.46 8223.34 10950.

2010 7184.32 322. 8. employees and others. 12 (e)] (Rs.86 101.74 387.84 34077. 2010 As at March 31.52 1534.02 777.45 261.considered good Claims / incentive recoverable.06 1297.23 220. 2009 Rs. 15] MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) (a) Employee Separation Cost (b) Others As at March 31. 2009 81.36 2708.32 15280. rent deposits and other amount due (Notes 4 to 6 below) Loan to Joint Venture and Associates [net of provision of Rs.48 30.09 2.67 178.41 13.86 LOANS AND ADVANCES A) SECURED Vehicle loans (Note 1 and 2 below) Less: Provision for doubtful loans (Note 3 below) B) (a) (b) (c) (d) (e) Total (A) UNSECURED .72 974.80 7136.66 605.05 144.Page 115.76 340.58 1745.69 23980.50 As at March 31.16 “11” [Item no. 13 (b)] PROVISIONS (a) Proposed dividends (b) Provision for tax on dividends (c) Provision for Income tax (d) Provision for retirement and other employee benefit schemes [Note B(2).14 7658.78 4. 1956 not due “12” [Item no.17 6325.69 12816. 2009 7742. in crores) As at March 31.95 687.30 86.61 35.02 “13” [Item no.08 104 .16 237.26 2038.68 1921.57 1776.11 28. 8.79 232.72 34. 2010 - As at March 31.85 132. 2009 311.50 2558.50 808.54 643.55 18519. 116 and 117] (e) Other provisions [Note B(4).68 45.29 22187.73 89. advances / loans to suppliers.93 8140. 2010 859.34 crores)] Deposits with government.00 64. public bodies and others (Note 7 below) Prepaid expenses (Note 8 below) Income tax refundable (net of provision) (Note 9 below) Total (B) Total (A) and (B) Notes: (1) (2) (3) (4) (5) (6) (7) (8) (9) Loans are secured against hypothecation of vehicles Includes on account of overdue Securitised Receivables Includes on account of Securitised Receivables Net of advances considered doubtful which have been provided for Includes amount due from customers in respect of contract works UK and other pension Plan (net) Deposits given as collateral Security Includes fees towards arrangement / structuring and other incidental costs on borrowing Includes MAT credit entitlement 8466.31 5679.54 915.03 crores (as at March 31.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Balance Sheet “10” [Item no.Page 118] As at March 31.66 358.57 1079.80 As at March 31.06 As at March 31. contractors.55 681.60 77.98 731. 2009 4239.50 7622. 13 (a)] CURRENT LIABILITIES (a) Acceptances (b) Sundry creditors (c) Liabilities for buyback arrangement (d) Advance and progress payments (e) Liability towards premium on redemption of Non-Convertible Debentures (f ) Interest / commitment charges accrued on loans but not due (g) Liability towards Investors Education and Protection Fund under Section 205C of the Companies Act.58 7643.33 629.15 4984.

Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at the dates on which investments are made by the Company in the subsidiary companies and further movements in their share in the equity. 13 Tata Motors (Thailand) Ltd. An associate is an enterprise in which the investor has significant influence and which is neither a Subsidiary nor a joint venture of the investor. year ended March 31. Actual results may differ from these estimates. The Company and its subsidiaries constitute the Group. liabilities. 5 TAL Manufacturing Solutions Ltd. The financial statements of the Group have been prepared in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India / notified under the Companies (Accounting Standards) Rules.36 81.36 81. Singapore 15 TML Distribution Company Ltd. Estimates and underlying assumptions are reviewed on an ongoing basis.) (w. 7 Concorde Motors (India) Ltd.e. II.36 81. 8 Tata Motors Insurance Broking & Advisory Services Ltd 9 Tata Motors European Technical Centre Plc. The excess of cost to the Company of its investments in the subsidiary companies / joint ventures over its share of equity of the subsidiary companies / joint ventures. where the share of equity in the subsidiary companies / joint ventures as on the date of investment is in excess of cost of investment of the Company. V. the share of profit / loss of each of the associate companies (the loss being restricted to the cost of investment) has been added to / deducted from the cost of investments. 10 Tata Technologies Ltd. 12 Tata Marcopolo Motors Ltd.55 100 51 70 100 100 60 21 81. 2009)* Indirect Subsidiaries ** 18 Tata Technologies (Thailand) Ltd (Formerly known as INCAT (Thailand) Ltd) 19 Tata Technologies Pte. 20 INCAT International Plc.55 81. subsequent to the dates of investments as stated above. 17 Tata Hispano Motors Carrocera S. The intra-group balances and intra-group transactions and unrealised profits or losses have been fully eliminated. its subsidiary companies. 14 TML Holdings Pte Ltd. The financial statements of the Company and its subsidiary companies have been combined on a line-by-line basis by adding together like items of assets. at the dates on which the investments in the subsidiary companies / joint ventures are made.55 81.36 100 51 86. income and expenses. The consolidated financial statements include the share of profit / loss of the associate companies which has been accounted as per the ‘Equity method’.f October 16. 11 Tata Motors Finance Ltd.36 100 60 85 85 100 100 100 100 100 81. The financial statements of the subsidiary companies / joint ventures used in the consolidation are drawn upto the same reporting date as of the Company i. that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. is recognised as ‘Goodwill’ being an asset in the consolidated financial statements. II.55 105 .A.78 100 100 60 100 81. Accounting Standards notified under Section 211 (3C) of the Companies Act. Alternatively. 2010. 6 Sheba Properties Ltd. joint ventures and associates. income and expenses of jointly controlled entity is reported as separate line items in the Consolidated Financial Statements. and accordingly. in the consolidated financial statements. it is recognised as ‘Capital Reserve’ and shown under the head ‘Reserves and Surplus’.e. Revisions to accounting estimates are recognised in the year in which the estimate is revised and future years affected. Ltd. (d) Principles of consolidation: The consolidated financial statements have been prepared on the following basis: I. estimates and assumptions. 2010 thereafter associate) 3 HV Axles Ltd. III. 4 HV Transmissions Ltd. liabilities. (a) Basis of accounting: I. (Note C (1).55 81. (c) Use of estimates: The preparation of financial statements requires management to make judgments. Ltd. The financial statements of the joint venture companies have been combined by using proportionate consolidation method and accordingly. South Korea India India India India India India India UK India India India Thailand Singapore India South Africa Spain Thailand Singapore UK UK France 100 85 85 100 100 100 100 100 81. 2 Telco Construction Equipment Company Ltd. Page 119) IV.A. (e) The following subsidiary companies are considered in the consolidated financial statements: % of holding either directly or through subsidiaries as Sr Country of at March 31.Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account Basis of Consolidation and Significant Accounting Policies (1) Basis of Consolidation: The consolidated financial statements relate to Tata Motors Limited (the Company). 16 Tata Motors (SA) (Proprietary) Ltd. venturer’s share of each of the assets. No. 1956 and the relevant provisions thereof. 21 Tata Technologies Europe Ltd 22 INCAT SAS.36 81. 2006 and other generally accepted accounting principles in India. Name of the Subsidiary Company incorporation 2010 2009 Direct Subsidiaries 1 Tata Daewoo Commercial Vehicle Co. (b) Basis of preparation: The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles. (Subsidiary upto March 30. (Formerly known as Hispano Carrocera S.55 81.

e.) Miljobil Greenland AS Miljo Innovasjan AS (merged with Miljobil Greenland AS w.f October 12.e. 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 * ** (f ) Name of the Subsidiary Company Indirect Subsidiaries (contd. (Formerly known as INCAT Systems Inc.69 71.50 71. (upto March 30. The difference between the cost of the vehicle and the estimated auction value is netted off against revenue over the term of the lease. 2009) Tata Technologies Inc. (Formerly known as Integrated Systems Technologies de Mexico.50 81.69 81. which is when risks and rewards of ownership pass to the dealer / customer. April 1. net of discounts.69 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 81. the proceeds are recorded as deferred revenue in current liabilities and the cost of the vehicles are recorded as inventories. transfer of technology relating to automotive products and exchange fluctuations relating to export receivables. 2009.V. Sales include income from services.f. No.A.00 40.A.e.V.V.) Sr No. and net of other indirect taxes.69 47. de C. 2010 2009 50.f October 16. 2009) Serviplem S.f October 12.64 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 - The following Joint Venture companies are considered in the consolidated financial statements: Sr. 2010 2009 81. with repurchase arrangements.f. At the time of sale. 2009) Jaguar Land Rover Mexico SA de CV Jaguar Land Rover Korea Co. INCAT Holdings B.40 36. (Formerly known as INCAT Solutions of Canada Inc. 1 2 Name of the Joint Venture Company Fiat India Automobiles Limited Tata HAL Technologies Ltd Country of incorporation India India % of holding as at March 31. when the products are delivered to the dealer / customer or when delivered to the carrier for export sales. 2009) Crrosseries Hispano Maghreb.) Tata Technologies de Maxico. 2009) Limited Liability Company “Jaguar Land Rover” (Russia) (w. S. (ii) 106 . 2009) INCAT K.A. Sales include export and other recurring and non-recurring incentives from the Government at the national and state levels. (upto March 30. April 2.Veiculos e Pecas. 2010) Comoplesa Lebrero S. 2009) Additional 79% acquired on October 16.00 40. (Liquidated on April 11.) Tata Technologies Canada Inc.e. Cars Ltd The Lanchester Motor Company Ltd Jaguar Hispania Sociedad Jaguar Deutschland GmbH Land Rover Land Rover Group Ltd Jaguar Land Rover North America LLC Land Rover Belux SA/NV Land Rover Ireland Ltd Jaguar Land Rover Nederland BV (formerly known as Land Rover Nederland BV) Jaguar Land Rover Portugal . Morroco (w. Revenues are recognised when collectibility of the resulting receivables is reasonably assured.f. (upto March 30. Ltd Jaguar Land Rover Automotive Trading (Shanghai) Co.78 * Effective holding % of the Company as it is a Joint Venture of Tata Technologies Ltd (2) Significant Accounting Policies: (a) Revenue Recognition (i) Sale of products The Company recognises revenue on the sale of products.55 81.e. 2010) Inner Mongolia North Baryval Engineering Special Vehicle Corporation Ltd (upto March 30.f. using a straight-line method.55 81.S.36 81. S. Sale of products is presented gross of excise duty where applicable. de C.69 71.Sixty-fifth annual report 2009-10 Tata Motors Limited Basis of Consolidation and Significant Accounting Policies (contd.) INCAT GmbH. 2009) Land Rover Parts US LLC (w.55 81. Revenue from sale of vehicles with guaranteed repurchase option / repurchase arrangement Some of the subsidiary companies sell vehicles to daily rental car companies and other fleet customers subject to guaranteed repurchase options and to Ford Motor Group management employees.69 81.e. 2010) JaguarLandRover Ltd Jaguar Cars Overseas Holdings Ltd Jaguar Land Rover Austria GmbH Jaguar Belux NV Jaguar Cars Ltd Jaguar Land Rover Japan Ltd Jaguar Cars South Africa (pty) Ltd Jaguar Italia SpA Jaguar Cars Exports Ltd The Daimler Motor Company Ltd The Jaguar Collection Ltd Daimler Transport Vehicles Ltd S. LDA Jaguar Land Rover Australia Pty Ltd Land Rover Exports Ltd Land Rover Italia SpA Land Rover Espana SL Land Rover Deutschland GmbH Jaguar Land Rover Asia Pacific Company Ltd (Liquidated w.K.00 26.68* 50. SAS Jaguar Land Rover South Africa (pty) Ltd Jaguar Land Rover Brazil LLC (w.e.00 36. Effective holding % of the Company directly and through its subsidiaries. 2010) Eurl Lebrero France (liquidated) (upto March 30.A. (Liquidated on July 31. Discount and variable marketing expenses pertaining to Jaguar and Land Rover group are netted off against sales. Ltd Jaguar Land Rover Canada ULC Jaguar Land Rover France.L.50 81. 2010) Baryval Assistencia Technica S. June 19.00 36. The difference between the proceeds and the guaranteed repurchase amount is recognised in Sales over the term of the arrangement. Germany Netherlands Japan USA Mexico Canada Norway Norway Spain Spain France Spain China UK UK Austria Belgium UK Japan South Africa Italy UK UK UK UK UK UK Spain Germany UK Jersey USA Belgium Ireland Netherlands Portugal Australia UK Italy Spain Germany Thailand Mexico South Korea China Canada France South Africa Brazil Russia UK USA Spain Country of incorporation % of holding either directly or through subsidiaries as at March 31. April 1. 2009) Land Rover Parts Ltd (w.

Accounting of Transactions in Foreign Currencies (i) Exchange differences Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. labour cost and directly attributable costs for self constructed assets and other direct costs incurred upto the date the asset is ready for its intended use. Estimated useful lives of assets are as follows: Type of Asset Estimated useful life Leasehold Land amortised over the period of the lease Factory Building 20 to 40 years Plant and Equipment 9 to 30 years Computers 3 to 6 years Vehicles 3 to 10 years Furniture and Fixtures 3 to 20 years Technical know-how 2 to 10 years Developed Technologies 10 years Software 1 to 8 years Special tools are amortised on a straight line basis over the lives of the model concerned. the assets. are depreciated over the estimated period of their utility or five years. based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings. if no specific borrowings have been incurred for the asset. whichever is less. Lease payments are apportioned between the finance charge and the outstanding liability. On fixed price contracts. Leases (i) Finance Lease Assets acquired under finance leases are recognised at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. (ii) Operating Lease Leases other than finance lease. 25. and ending on March 31. whichever is earlier. transmission and new products are recognised as fixed assets. Revenue from third party software products and hardware sale is recognised upon delivery. Payments under operating leases are recognised in Profit and Loss Account on a straight-line basis over the term of the lease. revenue is recognised based on milestone achieved as specified in the contracts on the proportionate completion method on the basis of the work completed. are operating leases. As per the assessment conducted by the Company at March 31. (ii) The product development cost incurred on new vehicle platform. the Company assesses whether there is any indication that the fixed assets have suffered an impairment loss. If any such indication exists.e. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability. Exchange differences arising in case of Integral Foreign operations are recognised in the Profit and Loss account and Exchange differences arising in case of Non integral Foreign Operations are recognised in the Group’s Translation Reserve classified under Reserves and Surplus. Other differences are accumulated in Foreign Currency Monetary Item Translation Difference Account. Foreign currency monetary assets and liabilities are translated at year end exchange rates. Borrowing cost incurred for qualifying assets is capitalised up to the date the asset is ready for intended use. if any. (2) Exchange differences relating to long term foreign currency monetary assets / liabilities are accounted for with effect from April 1. Interest income is recognised on the time basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exists. Where it is not possible to estimate the recoverable amount of individual asset. there were no indications that the fixed assets have suffered an impairment loss. engines. Product development cost are amortised over a period of 36 months to 120 months or on the basis of actual production to planned production volume over such period.000 and product development costs relating to minor product enhancements. April 1. and the leased assets are not recognised on the Company’s balance sheet. Foreseeable losses on such contracts are recognized when probable.f. 2007.Basis of Consolidation and Significant Accounting Policies (contd. (iii) Cost includes purchase price. Capital workin-progress includes capital advances. Revenue from rendering annual maintenance services is recognised proportionately over the period in which services are rendered. the unamortised depreciable amount has been charged over the revised remaining useful life. beginning April 1. the recoverable amount of the asset is estimated in order to determine the extent of the impairment.) (iii) Revenue from software consultancy on time and materials contracts is recognised based on certification of time sheet and billed to clients as per the terms of specific contracts. Assets given under finance leases except for those stated in (b)(ii) above. Dividend from investments is recognized when the right to receive the payment is established and when no significant uncertainty as to measurability or collectability exists. Impairment At each balance sheet date. In respect of assets whose useful life has been revised. (3) On consolidation. to be amortised over the period. facelifts and upgrades are charged off to the Profit and Loss Account as and when incurred. when feasibility has been established. (iv) (v) (b) Depreciation and Amortisation (i) (ii) (iii) (iv) (c) Fixed Assets (i) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation / amortisation. (1) Exchange differences arising on settlement of transactions and translation of monetary items other than those covered by (2) below are recognised as income or expense in the year in which they arise. Exchange differences considered as borrowing cost are capitalised to the extent these relate to the acquisition / construction of qualifying assets and the balance amount is recognised in the Profit and Loss Account. 2010. financial and other resources to complete the development and it is probable that asset will generate probable future benefits. 2007 or date of inception of such item. liabilities and goodwill or capital reserve arising on the acquisition. other than leased assets. of the Group’s overseas operations are translated at exchange rates prevailing on the balance sheet date. the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. are recognised as receivables at an amount equal to the net investment in the lease and the finance income is based on a constant rate of return on the outstanding net investment. Capital assets. (iv) Software not exceeding Rs. 2011 or the date of its maturity. Depreciation is provided on straight line method basis (SLM) over the estimated useful lives of the assets. the Company has committed technical. taxes and duties. The cost of acquisition is further adjusted for exchange differences relating to long term foreign currency borrowings attributable to the acquisition of depreciable asset w. which is 7 to 10 years. Depreciation is not recorded on capital work-in-progress until construction and installation are complete and asset is ready for its intended use. the ownership of which does not vest with the Company. 2007 in the following manner: Differences relating to borrowings attributable to the acquisition of the depreciable capital asset are added to / deducted from the cost of such capital assets. (d) (e) (f) 107 . as applicable. Income and expenditure items are translated at the average exchange rates for the year/month.

the Company designates such forward contracts in a cash flow hedging relationship by applying the hedge accounting principles set out in Accounting Standard 30. Some subsidiaries have obtained insurance policies with the Life Insurance Corporation of India. allowance is provided to the extent of 10% of the outstanding and amount due but unpaid.UK. Inventories Inventories are valued at the lower of cost and net realisable value.61 crores of pension plans of Jaguar Cars Ltd and Land Rover. Net realisable value is estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses. operates several defined benefit pension plan. net of applicable deferred income taxes and the ineffective portion is recognised immediately in the Profit and Loss Account. which are contracted out of the second state pension scheme. Gains or losses from the sale of loans are recognised in the period the sale occurs based on the relative fair value of the portion sold and the portion allocated to retained interests. Sales and transfers that do not meet the criteria for surrender of control are accounted for as secured borrowings. Jaguar Land Rover. cash collateral and bank guarantees. Consequently. death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. This provision has been necessitated consequent to the change in the method of accounting for profits on direct assigned receivables. Hedge accounting is discontinued when the hedging instrument expires or is sold. where gains or losses on sale are accounted for as per these norms. a defined benefit retirement plan covering eligible employees. Cost of raw materials and consumables are ascertained on a moving weighted average / monthly moving weighted average basis. Recourse is in the form of the Company and its subsidiary’s investment in subordinated securities issued by these special purpose entities. are allocated to work-in-progress and stock-in-trade determined on full absorption cost basis. including variable and fixed overheads. A separate defined contribution plan is available to employees of a major subsidiary group. the estimated liability for servicing expenses in respect of assigned receivables is made based on the ratio between the cost incurred for servicing current receivables and the collection made during the year. a constant rate of return on the net outstanding amount is accrued over the period of contract. the net cumulative gain or loss recognised in Hedging Reserve Account is immediately transferred to the Profit and Loss Account for the period. Where the subsidiary group is considered to have a contractual obligation to fund the pension plan above the accounting value of the liabilities. Contributions to the plans by the subsidiary group take into consideration the results of actuarial valuations. terminated. The loans are derecognised in the balance sheet when they are sold and consideration has been received by the Company and its subsidiary. frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The plans provide for monthly pension after retirement as per salary drawn and service period as set out in rules of each fund. any cumulative gain or loss on the hedging instrument recognised in Hedging Reserve Account is retained there until the forecasted transaction occurs. In respect of loan contracts that are in arrears for more than 6 months but not more than 11 months. The Company and some of its subsidiaries account for the liability for gratuity benefits payable in future based on an independent actuarial valuation. Income on Vehicle Loan / Hire-Purchase Income / Finance Income from Lease Interest income from hire purchase and loan contracts and finance income in respect of vehicles and income from plant given on lease. have been accounted in “Reserves and Surplus” in the consolidated financial statements in accordance with IFRS principles and permitted by AS21. (h) (i) (j) (k) 108 . With effect from April 1. 2008. The assets of the plan are held in separate trustee administered funds. Sale of Vehicle Loans The Company and its subsidiary sells Vehicle Loans to Special Purpose Entities (“SPE”) in securitisation transactions. The plans with a surplus position at the year end have been limited to the maximum economic benefit available from unconditional rights to refund from the scheme or reduction in future contributions. are accounted for by using the Internal Rate of Return method. or exercised. Costs in respect of this plan are charged to the statement of operations as incurred. In case of a subsidiary. Vesting occurs upon completion of five years of service. Employee Benefits (i) Pension Plans One of the major subsidiary group. If the forecasted transaction is no longer expected to occur. The Company and the said subsidiaries make annual contributions to gratuity funds established as trusts. The actuarial losses (net) of Rs. Amounts accumulated in Hedging Reserve Account are reclassified to profit and loss in the same periods during which the forecasted transaction affects profit and loss. Cost. The plan provides for a lump sum payment to vested employees at retirement. an onerous obligation is recognised. except for Jaguar and Land Rover which is on FIFO basis. to the extent of an amount equivalent to the outstanding principal and amounts due but unpaid considering probable inherent loss including estimated realisation based on past performance trends. The timing of outflows will vary as and when warranty claim will arise . Premium or discount on forward contracts other than those covered in (ii) above is amortised over the life of such contracts and is recognised as income and expense.1722.Financial Instruments: Recognition and Measurement.being typically upto five years. Jaguar Land Rover. except for subsidiaries which are governed by prudential norms for income recognition issued by the Reserve Bank of India for Non Banking Financial Companies (NBFC).) (ii) Hedge accounting The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to highly probable forecast transactions. The Company and its subsidiary provides an allowance for hire purchase and loan receivables that are in arrears for more than 11 months. These forward contracts are stated at fair value at each reporting date. Gratuity (ii) The Company and some of its subsidiaries in India have an obligation towards gratuity.Sixty-fifth annual report 2009-10 Tata Motors Limited Basis of Consolidation and Significant Accounting Policies (contd. Changes in the fair value of these forward contracts that are designated and effective as hedges of future cash flows are recognised directly in Hedging Reserve Account under Reserves and Surplus. These estimates are established using historical information on the nature. For forecasted transactions. Foreign currency options and other derivatives are stated at fair value as at the year end with change in fair value recognised in the Profit and Loss Account. or no longer qualifies for hedge accounting. (iii) (g) Product Warranty Expenses The estimated liability for product warranties is recorded when products are sold.

The monthly payment to dependents of the deceased / disabled employee under the plan equals 50% of the salary drawn at the time of death or accident or a specified amount. consequent to conversion or exchange fluctuations is adjusted to the SPA. on medical grounds or due to permanent disablement are also covered under the scheme. payable upto the date of normal superannuation had the employee been in service. in which both employees and the company/subsidiaries make monthly/annual contributions at a specified percentage of the covered employees’ salary (currently 12% of employees’ salary). Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual certainty that there will be sufficient future taxable income available to realise such losses. (iv) Bhavishya Kalyan Yojana (BKY) Bhavishya Kalyan Yojana is an unfunded defined benefit plan. The contributions. The monthly pension benefits after retirement range from 0. periods after retirement and types of benefits. Such contributions are recognized as an expense when incurred. to an eligible employee at the time of death or permanent disablement. TDCV a subsidiary company incorporated in Korea has an obligation towards severance indemnity. Employees separated from the Company as part of Early Separation Scheme. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn. this plan was amended and benefits earned by covered employees have been protected as at March 31. and accordingly. With effect from April 1. employees of the Company and some of its subsidiaries get medical benefits subject to certain limits of amount. applicable upto year ended March 31. The Company and its subsidiaries contributes up to 15% of the eligible employees’ salary to the trust every year. The Company and the said subsidiaries account for the liability for post-retirement medical scheme based on an independent actuarial valuation. whichever is higher. Provident fund and family pension The eligible employees of the Company and some of its subsidiaries are entitled to receive benefits in respect of provident fund. a defined benefit retirement plan. depending on their grade and location at the time of retirement. The plan provides for a lump sum payment to all employees with more than one year of employment equivalent to 30 days’ salary payable for each completed year of service. The Company accounts for the liability for BKY benefits payable in future based on an independent actuarial valuation. Deferred tax is recognised. a defined contribution plan. Post-retirement Medicare Scheme Under this scheme. Severance indeminty Tata Daewoo Commercial Vehicle Company Limited. Compensated absences The Company and some of its subsidiaries provides for the encashment of leave or leave with pay subject to certain rules. Discount on redemption of FCCN. if any. the share of post acquisition reserves of each of the associate companies has been added to / deducted from the cost of investments. will be recognised on redemption. Issue expenses / Redemption premium / discount on Foreign Currency Convertible Notes (FCCN) / Convertible Alternative Reference Securities (CARS) / Non Convertible Debentures (NCD) Issue expenses and premium payable on redemption of FCCN / CARS / NCD as per the terms of issue. on timing differences. Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when asset is realised or the liability is settled. Employees covered by this plan are prospectively entitled to benefits computed on a basis that ensures that the annual cost of providing the pension benefits would not exceed 15% of salary. Fair value of investments in mutual funds are determined on a portfolio basis. The liability is provided based on the number of days of unutilized leave at each balance sheet date on basis of an independent actuarial valuation. 2003. 2009. (v) (vi) (vii) (viii) (l) Investments (i) Long term investments are stated at cost less other than temporary diminution in value. while in service.) (iii) Superannuation The Company and some of its subsidiaries have two superannuation plans. 2003. Borrowing costs Fees towards structuring / arrangements and underwriting and other incidental costs incurred in connection with borrowings are amortised over the period of the loan. being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. either as a result of an injury or as certified by the Company’s Medical Board. are made to the provident fund and pension fund set up as irrevocable trust by the Company and its subsidiaries or to respective Regional Provident Fund Commissioner and the Central Provident Fund under the State Pension scheme. The Company and the said subsidiaries have no further obligation beyond this contribution. 1996 could elect to be a member of either plan. (m) Income Tax Expenses Income tax expenses comprises current and deferred taxes.Basis of Consolidation and Significant Accounting Policies (contd. (n) (o) 109 . The Company and the said subsidiaries account for superannuation benefits payable in future under the plan based on an independent actuarial valuation. if any. Current investments are stated at lower of cost and fair value. as an expense in the year incurred. The Company and some of its subsidiaries are generally liable for monthly/annual contributions and any shortfall in the fund assets based on the government specified minimum rates of return or pension and recognises such contributions and shortfall. Current tax is net of credit for entitlement for Minimum Alternative tax. The benefits of the plan include pension in certain case. for future encashment. Current taxes are determined based on respective taxable income of each taxable entity and tax rules applicable for respective tax jurisdictions. The employees are entitled to accumulate leave subject to certain limits. An eligible employee on April 1. based on tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date. Such deferred tax assets and liabilities are computed separately for each taxable entity and for each taxable jurisdiction.75% to 2% of the annual basic salary for each year of service. The Company and some of its subsidiaries maintain separate irrevocable trusts for employees covered and entitled to benefits. is provided fully in the year of issue by adjusting against the Securities Premium Account (SPA). a defined benefit plan and a defined contribution plan. Current tax includes Fringe benefit tax. (ii) (iii) Investment in associate companies are accounted as per the ‘Equity method’. if any. covering eligible employees. as specified under the law. Any change in the premium payable.

01 56. 2010 (b) Classified on a company wise basis : (a) Deferred Tax Asset (b) Deferred Tax Liability Net Deferred Tax Liability (c) Deferred Tax (charge) / credit for the year Opening net Deferred Tax Liability Debited / (Credited) to Securities Premium Account Debited / (Credited) to General Reserve Debited / (Credited) to Hedging Reserve Account Deferred tax on acquisition Translation differences on opening balances in respect of foreign subsidiaries Sale of controlling stake in a subsidiary Others Less:Closing net Deferred Tax Liability 425.78 1702. This has not been recognised due to the economic uncertainty of trading profits in the UK companies.63) 2009-2010 680.11 Deferred Tax (charge) / credit for the year (d) As at March 31.30 million (Rs. CMIL is in the process of completing similar formalities in respect of the Hyderabad Property that was acquired by CMIL pursuant to the scheme referred above . sales tax and other matters where the issues were decided in favour of the Company for which department is in further appeal Estimated amount of contracts remaining to be executed on capital account and not provided for Other money for which the Company is contingently liable: (a) In respect of bills discounted and export sales on deferred credit (b) The Company has given guarantees for liability in respect of receivables assigned by way of securitisation (c) Cash Margin / Collateral (d) In respect of retained interest in securitisation transactions (e) In respect of subordinated receivables (f ) Inter corporate deposits placed as collateral security (g) Others 1036.71 242.48 14.45 (47. 7.32 (680.67 3.54 2720. (a) Claims not acknowledged as debts (b) Provision not made for income tax matters in dispute The claims / liabilities in respect of excise duty.44 (949. in crores) “14”[Item no.21 8. March 31.66 (1153.75 110 .56 198.72 (840.06 4.95 (122.40) 14.13 28. 2010 2009 Liabilities: Depreciation (1108.76 1307.19 636.63) (433.63) As at March 31.88) 719.87 462. It is not possible to quantify the amount of duty payable. 2009 842.10 39.03) (45. and adjustments.80 million (Rs.48 As at March 31. 4280.98 (18.35 425.29) Assets: Unabsorbed depreciation/ business loss Employees separation schemes Employee benefits / Expenses allowable on payment basis Provision for doubtful debts Premium on redemption of CARS (net of exchange fluctuation on premium) Others Net Deferred Tax Liability 315.32 139.21) 122. will be carried out to the cost of land and building relating the property at Hyderabad.82 crore has been paid by CMIL during the year 2007-08 and has been capitalised under Land & Building. 2009 269.13) (1211.65 1605. 4. in relation to the capital allowance pool GBP 134.21) As at March 31. (a) Major components of deferred tax arising on account of timing differences are: As at As at March 31.95) (2285. 2009 (3.35) (191.50 crores) and carried forward tax losses GBP 628.The stamp duty adjudication order has been passed by District Registrar (DUS) for Bangalore property fixing the market value of the immovable property situated at Bangalore as on the date of acquisition at Rs.46 293.84 2398. 2010 2.23) (2461.68 (1153.11) 1005.30 20.56 315. as and when effected. Foreign Currency Monetary Item Translation Difference Account (Item 4 and Item 11.91 1.0. Stamp duty is payable on conveyance of properties in favour of CMIL.58 251.31 45.69) (22.35) Product development cost and Reserves for Research and Development Expenses (1332.01 259. 18] (A) Notes to Balance Sheet 1.79 802.15) As at March 31.50 million (Rs.73 iii) Deferred Tax 433.39 236.97 (1579.10 2970.42 97.03 crores). 5.65 crores on which Stamp duty @ 7% amounting to Rs.10 (680.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account (Rs.75 335.49 14.06) (79. 2010 636.00 55.31) 752.71) 640.56 1779. 3. a subsidiary company acquired certain immovable properties pursuant to a scheme of Arrangement in the year 2004.65) (680.00) (2.13 259. 5195.19 As at March 31.11.54 443.30 4545.53 crores) exists in a subsidiary group. Concorde Motors (India) Limited (CMIL).13 ii) Fringe Benefit Tax 21. 915.47) (1051. Page 94) As at March 31.73) Others (20.80 436. 2009-2010 2008-2009 Tax expense i) Current Tax (net of credit for Minimum Alternate Tax) 571.11 97.10) (19.50 0.65 327. a potential deferred tax asset of GBP 763.60) (1153.18 Opening Balance (net loss) (a) Exchange (gain) / loss on Foreign Currency Loan given (b) Exchange (gain) / loss on FCCN / CARS / Bridge Loan (c) Adjustments for sale of Controlling stake in a subsidiary Closing Balance (net gain) 6. 2010.21) 2008-2009 974.

16 3745. Disclosure of Goodwill (On Consolidation) As at March 31.82 128. Nil (2008-09 Rs. 2009 566. (ii) Assets taken on lease: (a) Total of minimum lease payments The total of minimum lease payments for a period : Not later than one year Later than one year and not later than five years Later than five years (b) A general description of significant leasing arrangementsThe Company has entered into Finance lease arrangements for computers and data processing equipments from a vendor - 52.18 6.30 142.87 3.68 - 111 . 2010 3718.Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account (Rs.87 As at March 31.05 23.26 20.05) 3718.01 196.80 As at March 31.41 20.65 As at March 31. 2009 53.15 32.) (A) Notes to Balance Sheet (contd.24 12. 2010 35.61 19. 3.83 65.57 0.90 32.98 66.93 5.08 29.95 14. (A) Disclosure in respect of finance leases: Assets taken on lease: (a) (i) Total of minimum lease payments The total of minimum lease payments for a period : Not later than one year Later than one year and not later than five years Later than five years (ii) Present value of minimum lease payments Present value of minimum lease payments for a period : Not later than one year Later than one year and not later than five years Later than five years (b) A general description of the significant leasing arrangements The Company has entered into Finance lease arrangements for computers and data processing equipments from a vendor (B) Disclosure in respect of operating leases: (i) Assets given on lease: (a) Total of minimum lease payments The total of minimum lease payments for a period : Not later than one year Later than one year and not later than five years Later than five years Gross block Accumulated depreciation Depreciation for the year Rs.07 - Opening Balance Add: Goodwill on acquisitions Less: Sale of controlling stake in a subsidiary Less: Impairment Less: impact of Foreign Currency Translation Closing Balance 9.64 0.01 crores) (b) A general description of the significant leasing arrangements The Company has entered into operating lease arrangements for land and buildings.78) 3422.18] (contd.90 (212.90) (40.65 187.54 (593. in crores) “14” [Item no.14 67.97 48.) 8.72 13.32 - 208.00) (230.34 28.

81 374.52 1.42 278. Fiat India Automobiles Ltd.68 0. Tata Cummins Ltd Fiat India Automobiles Ltd.50 (6.79 144.22 41. Ravi Kant (upto June 01.53 133.31 374.75 204. Notes to Balance Sheet (contd. in crores) (B) Transactions with the related parties Joint Venture Associates Key Management Personnel 8.67 142.52) Purchase of goods Sale of goods (inclusive of sales tax) Purchase of fixed assets Sale of Investments Services received Services rendered Finance given (including loans and equity) Finance taken (including loans and equity) Interest / Dividend paid/(received) (net) Amount Receivable Amount Payable Amount Receivable (in respect of loans.89 2259. 2009 thereafter subsidiary) Telco Construction Equipment Company Ltd (Subsidiary upto March 30.69 71. Telcon Ecoroad Resurfaces Private Ltd Tata Hispano Motors Carrocera S.18 25.55 12.39 484.02 142.A.56 77.92 367.20 1.42 65.90 9.72) 2009-2010 Total 4058.63 4.10 42.66 271. Tata AutoComp Systems Ltd. Fiat India Automobiles Ltd.95) (16.33 414.18] (contd.66 4.10 2. Nita Company Ltd Tata AutoComp Systems Ltd.10 58.99 197.50 50.31 49.27 197. Tata AutoComp Systems Ltd.08 28.98 33.59 11.) (A) 10.00 3007. Ltd Tata Sons Ltd (Investing Party) Nita Company Ltd Tata Hispano Motors Carrocera S.31 190.02 3. Ltd (up to March 30.01 2008-2009 1213.67 293. 2010) Automobile Corporation of Goa Ltd Jaguar Cars Finance Ltd Joint Ventures Fiat India Automobiles Ltd Tata HAL Technologies Ltd Key Management Personnel Mr.64 112.65 3. Tata Sons Limited Automobile Corporation of Goa Ltd Tata Sons Limited Tata Cummins Ltd Tata Sons Limited Tata Hispano Motors Carrocera S.35 291.98) 0.A. interest & Dividend) Amount Payable (in respect of loans) (C) Disclosure in respect of material transactions with related parties i) Purchase of Goods 1595.06 693.00 108.24) (6.54 33.69 62. P M Telang (Rs.95 - 2463.A.54 13. 2010 thereafter associate) Telcon Ecoroad Resurfaces Pvt.09) (4.73 (27.52 174.10 0.75) (9.81 219.81 132.40 126.33 1.64 77.58 1884.50 67.39 62.07 9. 2010 (A) Related Party and their relationship Associates Tata AutoComp Systems Ltd Tata Cummins Ltd Tata Precision Industries Pte.58 321.) (up to October 15.A.20 24.59 106.06 33. 2009) Mr.36) (2.01 - ii) iii) iv) v) vi) vii) viii) ix) Sale of Goods Purchase of Fixed Assets Sale of Investments Services received Services rendered Finance given including Loan and Equity Finance taken including Loan and Equity Interest/Dividend paid/(received) Dividend paid Dividend received Dividend received Interest received Interest received 112 .42 1595.25 86.50 292.50 38.85 199.08 0.42 32.39 484.62 146.A.05 75.46 693.19 156.80) (2.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account “14” [Item no.98 140. 1809.61 1. Tata Sons Ltd Tata Sons Ltd Tata Cummins Ltd Tata Hispano Motors Carrocera S. Automobile Corporation of Goa Ltd Tata AutoComp Systems Ltd.06 693.59 13.76 50.37 446.11 2009-2010 Tata Cummins Ltd Fiat India Automobiles Ltd.83 2979.38 0.00) (9.06 484.) Related party disclosures for the year ended March 31.50 3058.22 113.66 68.09 239.83 (19.08 66.69 62.92 132.33 49.44 76.19 126.48 13.80 110.47 2.78 2. (Formerly known as Hispano Carrocera S.93 67.

01 3477.40 49344.18] (contd.37 495. 113 .62 6950.61) 92519.19 98.71) (533.07 67877.44 2219.80 2463.60) (82.94 6254.55 17296.50 974.07 3802.43) (9.37 10603.77) - 89576.19 (818.94 39649.48 897.95 3989.89 (2465.29) (105.) (A) 11.23 66241.43) (88.64 (2129. deposits and loans given (b) d) Others .34 16795.58 85.33 43.23 32626.10 46.86 1419.62 1146. tax and exceptional items (i) (ii) (iii) Dividend and other income Interest and discounting charges Exceptional items (a) Exchange (loss) / gain (net) on revaluation of foreign currency borrowings.25 70880.75) (335.95 92519.71) (1930.61 70.08 2.Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account “14'’ [Item no. in crores) Total Tata Vehicles / spares and financing thereof * a) Revenue External sales and income from other operations Inter segment sales and other income Total Revenue b) c) Segment results before other income.21 39270. 2010 Primary segment Automotive Jaguar and Intra Land Rover Segment Business Eliminations Others Total InterSegment Eliminations (Rs.81) (68.35) (88.31) (243.37 67838.59 3887.71) (101.62 2515.54 (533.70 38.78) (461.40 636.debt prepayment cost 40320.26 425.95) 2942.99) (127.96 20245.00) Profit /(Loss) before tax Tax expense e) f) g) h) Profit / (Loss) after tax Segment assets Segment liabilities Other information (i) Depreciation (ii) Capital expenditure 39725.96 3465.99 11594.35 69084. interest.78) (461.43 3087.94 1044.04) 3522.43 2.12 798.96 (2239.15 381.90) (2.90) 84.68 (11.37 3758.88 38.58 38.99 217.21 39270.88 3042.70 38.16 8918.22 3437.13 2506.12 1257.80) 80153.31 86.64 1786.58 5302.13) 79363.) Consolidated Segment Information for the year ended March 31.31 16858. (A) Notes to Balance Sheet (contd.77 8861.29 28606.70 49344.64 37352.70 53.87 1164.84 (1777.38) (56.16 1534.01) (11.56 30187.59 28567.86 1324.90 33614.44 (356.59 288.49 89615.07 1729.43 17511.15 5440.12 958.08 423.02) 1793.29 29106.80 (658.25) (1005.48 3840.47 (339.49 40359.30 37039.71 i) Segment assets exclude: (i) Deferred Tax Assets (ii) (iii) Investments Foreign Currency Monetary Item Translation Difference Account Short Term deposits with Banks Margin Money / Cash Collateral with Scheduled Banks Loans to Employees Income tax refundable Miscellaneous expenditure (to the extent not written off or adjusted) Interest accrued on Investments (iv) (v) (vi) (vii) (viii) (ix) * Tata vehicles include Tata Daewoo and fiat traded vehicles.25 449.30 248.75) 2516.97 269.25 70880.

09 1930.42 33661.79 993. 1956 not due (Rs.25 70880.06 387.05 33929.) j) Segment liabilities exclude: (i) Minority interest (ii) (iii) (iv) (v) (vi) (vii) Loans secured Loans unsecured Foreign Currency Monetary Item Translation Difference Account Deferred tax liability Liability towards premium on redemption of Non-Convertible Debentures Provision for premium on redemption of Foreign Currency Convertible Notes (FCCN) / Convertible Alternative Reference Securities (CARS) Proposed dividend and tax thereon Provision for Income Tax Interest / commitment charges accrued on loans but not due Liability towards Investors Education and Protection Fund under Section 205C of the Companies Act.91 36528.82 292. 2010 (contd. These transfers are eliminated on consolidation.95 80153.72 89.51 403.60 949.65 1745.36 8657.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account “14'’ [Item no.69 41544.42 1871.57 232.31 239. Such transfers are undertaken either at competitive market prices charged to unaffiliated customers for similar goods or at contracted rates.76 24.32 225.90 Less : (i) 2008-2009 (2) 114 .61 15257.26 Note: (1) The Company has disclosed business segment as primary segment.50 13902. 16] (B) Notes to the Profit and Loss Account: 2009-2010 (1) Interest and Discounting Charges (a) Interest Transferred to Capital Account Interest received on bank and other accounts (ii) 2126.15 5382.41 34.32 3215.03 21290.55 17296.35 191.34 2660.81 480.13 India 37760.65 1742.41 671. Segment revenues.03 13705.35 358. wherever applicable.57 1003.46 UK 11569.30 2239.34 332.68 Rest of Europe 13146.15 1094.12 (viii) (ix) (x) (xi) (B) Secondary segment Revenue from external customers Carrying amount of segment assets Capital expenditure United States 10106.) Primary segment (contd.71 1982.48 10603. engineering solutions and software operations.84 4420.01 1450.31 82.) (A) 11.89 38259.84 13.93 (b) Discounting Charges (net) 1568.61 557.08 13355. in crores) 213.18] (contd.14 32.70 532.64 8861.35 69084.19 64. Notes to Balance Sheet (contd. expenses and results include transfer between business segments.23 5163.99 1.15 1579.63 26101. Automotive segment consists of business of automobile products consisting of all types of commercial and passenger vehicles including financing of the vehicles sold by the Company.57 7509.22 27025.) Consolidated Segment Information for the year ended March 31.22 2235.89 Total 92519.84 166. Others primarily include construction equipment. “14”[Item no.71 347.01 6584.33 21268.10 Rest of World 19936.

12 5.83 7.53) 61.02) 513.53 4. The assumption of future salary increases.48 3.38 4.28 37.21 8.16 29.25) 36.80 ii 63.65 70.89 2009 31.89 (3.48 (61.41) 146.80 6.50 8. 176.55 154.43 86.53 (8.48 2. seniority.94 59.75 40.96 2008 72.78 (63.77 Post-retirement Medicare scheme 2010 3. at the beginning of the year.53) (191.47 2.28 crores to the funded pension plans in the year 2010-2011.50 8.15 (63.17 (0.14) 2009 2.07 (5.98 40.47 (20.06 32.02 2.15 3.78 56.70 22.18) 0.31 104.58 83.01 37.34 61.00 2.31 12.81 29.98 3.32 433.51 23.74 2.22 11.51) 85.41 28.54 2007 67.00 3.42 One percentage point decrease in Medical inflation rate 2009 77.66) 68.05 (0.00 N/A 68. take account of inflation.93 5.90 crores (2008-09 Rs.00 iii 513.74 109.31 12. The Company expects to contribute Rs.16 548. 115 .35) 558.37 (68.98 90.50 N/A N/A iv v vi vii 76% 24% 78% 22% 69% 31% 64% 36% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A viii One percentage point increase in Medical inflation rate 2010 100.43) 558. considered in actuarial valuation.81) 162.77 162.50 N/A N/A 20.22 16.65 46.75 40.98 (68. such as supply and demand in the employment market.00 N/A 154.22 18.47 146.08 20.81) 87.74 0.14 (29.65) 8.17 (87.84 34.18 3.50 N/A 4.00 4.34) 61.77 (28.21 5.50 5.77 2007 20.09) 52.72) 37.47) 146.60) 8.95) (27.40 15.10 574.32 31.98 (38.46 7.98 2.18 4.50 N/A 4.74 (4.48) 42.27 7.68 2.83 37.21 (80.75-8.49) 3.60 23.48 (69.55) 154.00 4.52 10.60 44.18) 70.17 (0.50 N/A N/A 4.80 10.21 28.38 (4.03 5.43) 607.81 18.75-8.32 497.01) 515.50 8.34) 8.78 2.Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account (B) Notes to the Profit and Loss account: (contd.60 (23.16 (23.83 6.60 43.89 85.24 (20.95 44.51 (4.78 607.53 (70.02) 433.00 N/A 67.19) 451. Page 98 under item : Actual Contribution and Benefit Payments Actual benefit payments Actual Contributions Net asset/(liability) recognised in balance sheet Present value of Defined Benefit Obligation Fair value of plan assets Net asset/(liability) recognised in balance sheet Change in Defined Benefit Obligations (DBO) Present Value of DBO at beginning of year Liability on Acquisitions Current Service cost Interest cost Plan amendments Actuarial (gains)/ losses Benefits paid Sale of stake in Subsidiary Present Value of DBO at the end of year Change in Fair Value of Assets Plan assets at beginning of year Actual return on plan assets Actual Company contributions Benefits paid Sale of stake in Subsidiary Plan assets at the end of year Actuarial Assumptions Discount Rate (%) Expected Return on plan assets (%) Medical cost inflation (%) The major categories of plan assets as percentage to total plan assets Debt securities Balances with banks Effect of one percentage point change in assumed Medical inflation rate Revised DBO Revised service cost Revised interest cost (a) Gratuity.38 87.43) 497.51 (69.95 86. in crores) “14'’ [Item no.74 191.79 5.66 12.93 (b) (c) (d) Defined Contribution PlansThe Company’s contribution to defined contribution plan aggregated Rs.68) 548.60 43.34 3.89) (29.40) 110. The expected rate of return on plan assets is based on market expectation.05 (0. 77.41 18.83 7.57 (4.47) 8.54 2007 56.30 2008 64.16 515.07 4.60 29.97 3.34 2007 12.10 3.46 (60.86 crores) for the year ended March 31.55 (29.00 N/A 69.95) (26.10 (67.17 4.77) 162.57 2008 2.27 7.16] (2) (a) Defined benefit plans / Long term compensated absences Particulars i As at / for the year ended on March 31.41 (58.98 4 (b) 21.16 4 (a) 13.06 32. Superannuation and BKY / PSY 2010 31.) (Rs.78 2009 93.51 4.89) 2008 15.41 (162.34 (28.22 11.69 3.40 2010 18.19 23. Components of employer expense Current Service cost Interest cost Expected return on plan assets Past Service Cost Actuarial Losses/(Gains) Total expense recognised in the Statement of Profit & Loss Account in Schedule B.14) (4.74 351.65 (4. for returns over the entire life of the related obligation.50 N/A N/A 28.55 44.75) 574.18 515.77 28.19 433.51) 8.50 N/A 4.55 29.79 5.35 12.18 19.78 7.38) (3.60 44. 2010 has been recognised in the statement of Profit and Loss Account under item 4 (b) in Schedule B on page 98.40 (146.16 Compensated Absences 2009 18.69 3.02 109.215.86) 513.55 (36.43 104.60) 191.00-8.38) 8.40 20.22 16.46 48.51 85.55 2010 82.65) 70.17) 85. promotion and other relevant factors.18 (85.75-8.53 2.57 50.50 N/A 4.22 18.81 (154.96 (42.34 (3.22 (67.83 (58.55) 8.80 10.16 29.65 4.37 558.47 20.74 2007 2.50 8.58) 2008 26.77) 8.66 12.96 0.53 (8.18 497.14 79.03 5.18 31.73 26.69 3.35 4.93 5.01) 574.41 6.

such as supply and demand in the employment market.87 7.25) 156.73 15. (Rs.83 (174.14 16.35 10. Page 98 under item 4 (b) Actual Contribution and Benefit Payments Actual benefit payments Actual Contributions Net liability recognised in Balance Sheet Present value of Defined Benefit Obligation Fair value of plan assets Net liability recognised in Balance Sheet Change in Defined Benefit Obligations Present Value of DBO at the beginning of the year Current Service cost Interest cost Actuarial losses Benefits paid Exchange fluctuation Present Value of DBO at the end of the year Change in Fair Value of Assets Plan assets at the beginning of the year Acquisition Adjustment Actual return on plan assets Actual Company Contributions Benefits paid Plan assets at the end of the year Actuarial Assumptions Discount Rate Expected return on plan assets Medical cost inflation 2010 17.84% N/A N/A 2009 14.63) 113.63 N/A N/A N/A 9.) (2) (b) Details of Severance Indemnity plan applicable to Tata Daewoo Commercial Vehicle Co.90 6. Ltd.26 (16..23 (217.85 19.43) (0.87 (7.16) (13.25 23.25 23.) “14'’ [Item no. in crores) Particulars As at / for the year ended on March 31.43 9.64 19.26 16.50 (156.88 6.75 46.16 174.51 (9. take account of inflation. 116 .52 217. seniority.96 42.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account (B) Notes to the Profit and Loss account: (contd.75 (16.16) 5.83 N/A N/A N/A 10.23 N/A N/A N/A 16.87) 5.64 19.50) 149.85 19.46 7.43 (9.64 9.90 6.83 17.63 18.54 8. considered in actuarial valuation.96 (10.16] (contd.43 149.23) 174.54 8. Korea.16 (10. Components of employer expense Current Service cost Interest cost Actuarial losses Total expense recognised in the Statement of Profit & Loss Account in Schedule B.43) 5.26 217.87) (18.51 45.50 14.87 7.88 6.86) 174.87 7.75 7.26) 4.75 7.87 156.38% N/A N/A 2007 15.22 (7.83) 156.00% N/A N/A 2008 18.00% N/A N/A i ii iii iv v vi The assumption of future salary increases. promotion and other relevant factors.50 N/A N/A N/A 7.63 (149.26) 12.31) 149.69 33.16 10.

68) N/A N/A Exchange rates (1976.87) (1713. 803. Components of employer expense Current Service cost 480.21 (2462.67 Net (Liability) recognised in balance sheet (680.04 1263.25 Total expense recognised in the Statement of Profit & Loss Account in Schedule B.61 0.55 10.44) Amortisation of past service cost 13.03 483.46 1.87 Actuarial losses 4902. take account of inflation.70-7.65 Fair value of plan assets 25908. in crores) Post-retirement Medicare scheme 2010 2009 “14'’ [Item no.15) (0.70 crores for the year ended March 31.37) Unrecognised actuarial gains and losses (3.65 Change in Fair Value of Assets Plan assets at beginning of year 22591.64 Amount recognised in Pension Reserve Actuarial loss 642. 117 .47 Interest cost 1555.15) (0.05 563.67 Movement in restriction of pension assets (481.23 22119.06 552.74 Restriction of pension asset (19.74 N/A N/A Plan assets on Acquisition 29341.60 6.80-6.04) (563.68) Exchange rates (2047. Page 98 under item 4 (b): 728.62) Actuarial Losses 16. The assumption of future salary increases.80 4.89 0.05) (3491.24 22119.14 0.00-3.53 0.28) N/A N/A Actual Company contributions 398.45) Asset restriction (14.53 0.76) (8.41) 1.87crores to the funded pension plans in the year 2010-2011.68 Actual Contributions 398.86 22591. Particulars i Post-retirement Pension scheme 2010 2009 (Rs.64 N/A N/A Actual Member Contributions 147.12) N/A N/A Plan assets at the end of year 25908.41 Plan curtailment (5.50 2.93) (0.70) 1.26) Amount recognised in Pension Reserve 263.22 7.21 1.76 8.55 10.Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account (B) (2) Notes to the Profit and Loss account: (contd.65 Liability on Acquisition 26595.04 1263.07) Plan combinations 2.59 Current Service cost 480.50.52-3.14 Present Value of DBO at the end of year 26340. seniority.30 N/A N/A Expected Return on plan assets (%) 6.67 Net liability recognised in balance sheet Present value of Defined Benefit Obligation 26340.69) Expenses paid (0.68) N/A N/A Expenses paid (0.88 N/A N/A Actual return on plan assets 5574.42) Onerous Obligation (226.73 1457.37 0.67 (1.28) (10.87 N/A N/A Benefits paid (826. The expected rate of return on plan assets is based on market expectation. considered in actuarial valuation.76 8.88 22591.38 35.01) (3511.01) Net asset recognised in balance sheet 3.07) N/A N/A Plan combinations 54.90-8.40 N/A N/A Medical cost inflation (%) N/A N/A 7.50 5.16 6.72 57.22) Exchange Fluctuation 102.06 552.11 7. 2010 has been recognised in the statement of Profit and Loss Account under item 4 (b) in Schedule B on Page 98.70) (519.03 483.94 Actual Contribution and Benefit Payments Actual benefit payments 826.50 N/A N/A Plan settlement (0. The Company expects to contribute Rs.61 Amendments 12.5.93 2585. promotion and other relevant factors.77 Inflation (%) 2.65) Change in Defined Benefit Obligations (DBO) Present Value of DBO at beginning of year 22119. for returns over the entire life of the related obligation.47 Expected return on plan assets (1314.81 237.90 0.47 0.55 8.81 237.37 0.13 (169.10 The major categories of plan assets as percentage to total plan assets Equity securities 39%-53% 27%-36% N/A N/A Debt securities 39%-56% 36%-62% N/A N/A Other 1%-23% 3%-29% N/A N/A Defined Contribution PlansJaguar and Land Rover group’s contribution to defined contribution plan aggregated Rs.25 Actual Member Contributions 147.66) (436.02) Benefits paid (826.45) Plan settlement (0.69 1.63 Curtailment (5.15 (3520. such as supply and demand in the employment market.60) (290.05) (563.74 N/A N/A Actuarial Assumptions Discount Rate (%) 5.47 Interest cost 1555.) (c) Details of Defined benefit plans applicable to Jaguar and Land Rover group.33) (959.16] ii iii iv v vi vii viii (a) (b) (c) (d) As at / for the year ended on March 31. 1.06 261. at the beginning of the year.

59) (8. 183.76 290.88) (2505. 15.463 6.15 (Rs.09 46. Nos.37.95 2524. Rupees Rs. crores Rs. 12.00 (2349. crores Rupees Rupees 2571. as per the details given below: (Rs.00 crores) (c) Contract revenue recognised during the year is Rs 81.05) 128.136 6.91 Other provisions include: (a) Product warranty and Liability Opening Balance Add: On acquisition of subsidiaries Add: Provision for the year (net) (including additional provision for earlier years) Less: Payments / debits (net of recoveries from suppliers) Less: Sale of controlling stake in a subsidiary Foreign currency translation Closing Balance (b) The provision is expected to be utilized for settlement of warranty claims within a period of 2 to 4 years.41.80) 151. 2009 Rs.01 crores (as at March 31.20 587.06 41.75) 106.88) (56.76. Since there is a loss for the year.Sixty-fifth annual report 2009-10 Tata Motors Limited Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account “14”[Item no.25) # # # # # # # # # # (56.11 165.15 887.87) 1094.20 46.67 crores ( as at March 31.04) (27.69 315.65 45. crores Rs.15 Note: (1) The share of loss restricted to the carrying amount of investment. crores Nos. Provision towards Environmental Cost : Opening Balance Add: On acquisition of subsidiaries Add: (Reversal) / Provision for the year (net) Less: Payments / debits Foreign currency translation Closing Balance This provision relates to various environmental remediation costs such as asbestos removal and land clean up.36.97 4495.41.282 6.99) 4384.03 crores (2008-09 Rs.06) 3743. in crores) 2008-2009 (2505.25 (439. Nos.04) (90.30 2266. (Note 1 below) (3. 11.37.25) 41. 2009-2010 4384. crores Rs. crores Rs.11 (2220.37 2008-2009 264.28.54 (d) Premium on redemption of Foreign Currency Convertible Notes (FCCN) and Convertible Alternative Reference Securities (CARS): Opening Balance Foreign currency exchange (gain) / loss Premium on Redemption of FCCN (including withholding tax) Reversal of provision for premium due to conversion of FCCN Reversal of provision for premium due to buyback of FCCN / CARS Closing Balance 1094. 693.54 (13.84 234. 16] (B) Notes to the Profit and Loss Account :(contd.91 0.70 (2991.76.57 crores) The share of profit / (loss) in respect of investments in associate companies include the figures which are considered as per the unaudited financial statements / profit and loss account for the year ended March 31. 2009 Rs.39) (31.61) (23. Provision for Residual Risk: Opening Balance Add: On acquisition of subsidiaries Add: (Reversal ) / Provision for the year (net) Less: Payments / debits Foreign currency translation Closing Balance In certain markets.11) 116.00) (56.39 15.01. potential equity shares are not considered as dilutive and hence diluted EPS is same as Basic EPS.00. 16.25 (c) 151.164 2322.32.64 49.06 46.64.028 10. Nos.64 (0.42.14 2571.45 crores (as at March 31.31 crores) (d) Aggregate amount of costs incurred and recognised profits (less recognised losses) Rs 242.028 1.57 (5) (6) The additional disclosure as required by AS 7 (Revised) on Construction Contracts are as follows: (a) Advance received is Rs.99 46.48) (420.46 (225. 118 . 2010 March 31.819 52. Nos. Nos. 2009 Rs.91 621.57 (133.36.) (3) 2009-2010 Earnings Per Share: (a) Profit / (Loss) for the year (b) The weighted average number of Ordinary Shares for Basic EPS (c) The weighted average number of ‘A’ Ordinary Shares for Basic EPS (d) The nominal value per Share (Ordinary and ‘A’ Ordinary) (e) Share of Profit / (Loss) for Ordinary Shares for Basic EPS (f ) Share of Profit / (Loss) for ‘A’ Ordinary Shares for Basic EPS* (g) Earnings Per Ordinary Share (Basic) (h) Earnings Per ‘A’ Ordinary Share (Basic) (i) Profit / (Loss) for the year for Basic EPS (j) Add: Interest payable on outstanding Foreign Currency Convertible Notes (k) Profit for the year for Diluted EPS (l) The weighted average number of Ordinary Shares for Basic EPS (m) Add: Adjustment for Options relating to warrants.23 44.62) 693.88) (56.71 (425. Foreign Currency Convertible Notes and Convertible Alternative Reference Securities (n) The weighted average number of Ordinary Share for Diluted EPS (o) The weighted average number of ‘A’ Ordinary Share for Basic EPS (p) Add: Adjustment for ‘A’ Ordinary Shares held in abeyance (q) The weighted average number of ‘A’ Ordinary Share for Diluted EPS (r) Share of Profit for Ordinary Shares for Diluted EPS (s) Share of Profit for ‘A’ Ordinary Shares for Diluted EPS* (t) Earnings Per Ordinary Share (Diluted) (u) Earnings Per ‘A’ Ordinary Share (Diluted) * # (4) Rs. Rs. the Company is responsible for the residual risk arising on vehicles sold by dealers under leasing arrangements. in crores) Share in Post Profit / (Loss) acquisition Reserves for the year and Profit and Loss ended March account upto 31.38) 257.463 5.50) 993.79) (1. crores Nos.08 crores) (b) Retention money is Rs.00 2255.499 10.93 2612. The timing of the outflows will be at the end of the lease arrangements – being typically up to three years.20) (115. 119.52) (152.53.69.30. Nos. 2010 Name of the Associate Tata Cummins Ltd. 2010. 116. The provision is based on the latest available market expectations of future residual value trends.37 48.25) (156.469 2.04 (8.09) (20.15 Tata Precision Industries Pte.74. Ltd. The timing of when these costs will be incurred is not known.88) ‘A’ Ordinary Share Holders are entitled to receive dividend @ 5% points more than the aggregate rate of dividend determined by the Company on Ordinary Shares for the financial year. crores Rupees Rupees Rs.76.

92) 146.37 2.e. 2010 2009 2009-2010 2008-2009 Unaudited Audited Unaudited Audited RESERVES AND SURPLUS INCOME Reserves and Surplus (486.54 LIABILITIES Loan Funds Current Liabilities Provisions 1337.33 59. 2010 of the joint venture companies based on financial statements are given below: (Rs.48 140.Schedule forming part of the Consolidated Balance Sheet and Profit and Loss Account (C) Other notes: (1) The proportionate share of assets and liabilities as at March 31.62 9. 2010. 2010.57) 42.f.63 million).. Current year figures are shown in bold prints. Consequently.59 1644. March 30. w. 2008. Spain.12 crores of Jaguar and Land Rover and (b) unamortised debt issue cost of Rs.53 2036.01 (3) (4) (5) On June 2.29 755.18 1278.90 1028. in crores) As at As at March 31. JPY10. Consequently. 2010 and income and expenditure for the year ended March 31.90 984.69 2754. Ltd (658. During the year ended March 31. 105.07 (192.54% of USD Notes (i.97) 0. through mutual agreement with the other share-holder. Tata Hispano Motors Carrocera S.66.710 million) and 76. Investalia S.e.43. Noteholders could opt to receive shares at enhanced conversion terms. Noteholders representing 93. (34. 2010 Total Revenue Net Increase/ (Decrease) in Cash & Cash Equivalent * Net of consolidation adjustments. Ltd.98 Claims not acknowledged as debts Capital Commitments (2) 3.08 156. 2008 to March 31.80 124.28 1439.17) (350.760 million (due 2011) and 1% USD 300 million (due 2011) Convertible Notes.02) (6) On March 23.49 65. Exceptional Items . opted to convert their Notes into Ordinary Shares.03 (28. for a consideration of Euro 2 million (Rs.A. who exercised the option.14 50. include the results of the operations of Jaguar Land Rover business for the period June 02.67 2401. Details for the same are as under: Tata Motors Thailand Ltd As at March 31. 2010 Net Worth For the year ended March 31.37 1568. the Company acquired from Ford Motor Company. Jaguar Land Rover business.others mainly consist of (a) employee separation cost of Rs.04 crores written off on prepayment of bridge loan for acquisition of Jaguar Land Rover business. 50) Current Assets EXPENDITURE Manufacturing and other expenses Expenditure transferred to capital and other accounts Product Development Cost Depreciation Interest Tax expenses 1615.62% of the JPY Notes (i. Previous year figures have been re-grouped where necessary.52 401.69)* (11. 2010.A. (Formerly known as Hispano Carrocera S. has become a 100% subsidiary of the Company.e.61 756.53 (53. (b) the Company has sold 20% stake in Telco Construction Equipment Company Ltd (Telcon) to Hitachi Construction Machinery Co. March 31.46 696. an option to convert their Notes into Ordinary Shares during a limited offer period. 13. 2010.93 1704.71 crores). 191. Noteholders of outstanding 0% JPY 11. USD 229. 2010. as per the terms of Invitation Memorandum. 2009.A. 2009.75 390. with the previous year.71 1769. The financial results for the year ended March 31. The following subsidiaires have been considered on Unaudited basis. As a result.41) TML Holdings Pte. would continue with all the terms of their notes as applicable prior to this limited period offer. are not comparable to this extent.14 (72.S.18 - 599.56 1.76 2376. Noteholders.08) 163. the company has allotted 2. During this period. The financial results for the year ended March 31.A. outstanding prior to the offering.23) Sale of products and services Less : Excise duty Other Operating Income ASSETS Net Block (including CWIP) Investments (Rs. (a) the Company has acquired 79% shares in Tata Hispano Motors Carrocera S. who did not participate. Telcon is accounted for as an associate in the consolidated financial statements For the year ended March 31. (7) (8) 119 . the Company had offered to Non-U.266 equity shares to the Noteholders.) by way of exercise of the existing call option.00 0.

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