You are on page 1of 40

AUDIT REPORT OF TATA MOTORS

EXECUTIVE SUMMARY
Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,88,818 crores (USD 34.7 billion) in 2012-13. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer. The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." Established in 1945, Tata Motors' presence cuts across the length and breadth of India. Over 7.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts network comprises over 3,500 touch points. Tata Motors, also listed in the New York Stock Exchange (September 2004), has emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.

M.COM-2(SEM-3)

Page 1

AUDIT REPORT OF TATA MOTORS

INDEX
SR. NO. 1. 2. 3. 4. TITLE MEANING OF AUDITING RELATION OF ACCOUNTING AND AUDITING FUNCTIONS AND OBJECTIVE OF AUDITING PRINCIPLE GOVERNING AN AUDIT & ASPECTS TO BE COVERED IN AUDIT ADVANTAGES AND LIMITATION OF AUDITING MEANING OF AUDITOR POWERS & DUTIES OF AUDITOR INTRODUCTION OF TATA MOTORS HISTORY OF TATA MOTORS AUDITOR'S REPORT OF TATA MOTORS COMMENTS ON AUDITOR'S REPORT OF TATA MOTORS CONCLUSION BIBLIOGRAPHY PAGE NO. 3 5 6 9

5. 6. 7. 8. 9. 10. 11. 12. 13.

12 14 17 20 24 26 37 39 40

M.COM-2(SEM-3)

Page 2

AUDIT REPORT OF TATA MOTORS

1.MEANING OF AUDITING
The word audit is derived from the Latin word audire which means to hear. It is an important tool of management. It is concerned with making an analytical an critical analysis of the books of accounts, checking and verification of evidence in support of entries appearing in the books of accounts, and ascertaining the authenticity of the financial statements. It is also concerned with the examination of accounting data to determine the extent of an audit examination is too made on the basis of evidential document such as invoice, money receipts and other records by the authorized representative of the client. Auditor has used to send for the accountants and hear whatever they had to say in connection with the accounts. The auditor has to look into the facts behind figures and he must certify their accuracy. Auditing is to ascertain the balance sheet and profit and loss account that they show a true and fair view of the financial state of affairs of a concern. The Institute of Charted Accountants of India has issued a number of statements of standard auditing practices and accounting standards for guidance of Auditor of India.

DEFINITION OF AUDITING
According to DICKSEE, An audit may be said to be such an examination of the books, accounts and vouchers of a business, as will enable the auditor to satisfy himself that the balance sheet is properly drawn up, so as to exhibit a true and fair value of the state of the affairs of the business, whether the profit and loss account gives a true and fair value of the profit and loss for the financial year. According to the best of his information and explanations given to him and as shown by the books, and if not, in what respect he is not satisfy.

M.COM-2(SEM-3)

Page 3

AUDIT REPORT OF TATA MOTORS

ORIGIN OF AUDITING
Auditing has its origin in the necessity in the development of some system to put a check on the persons whose duties were to record receipts and disbursements of money on the behalf of owners. In the ancient days auditing was confined to public accounts only. With the development of trade and commerce, the need for recording transactions was felt by businessman. This had necessitated the development of some system of check upon the persons who recorded such transactions on the behalf of businessman. The audit in its present shape is the result of large-scale production in consequence of Industrial Revolution during the 18th Century. With the development of banking facilities, communication and transport means, the concept of corporate management has taken birth. It necessitated the investors to know whether their investment is safe or not. Shareholders need an independent person having expert knowledge of accounts to report on the working of the company and truthfulness of the profit or loss and financial position disclosed by the management.

M.COM-2(SEM-3)

Page 4

AUDIT REPORT OF TATA MOTORS

2. RELATION OF ACCOUNTING AND AUDITING


Both accounting and auditing are closely related with each other as auditing reviews the financial statements which are nothing but a result of the overall accounting process. It naturally calls on the part of the auditor to have a thorough and sound knowledge of GAAP before he can review the financial statements. In fact, auditing as a discipline is also closely related with various other disciplines as there is lot of linkages in the work which is done by an auditor in his day-to-day activities. To begin with, it may be noted that the discipline of auditing itself is a logical construct and everything done in auditing must be bound by the rules of logic. The knowledge of language is also considered essential in the field of auditing as the auditor shall be required to communicate, both in writing as well as orally, in day-to-day work .For example, if the business has really earned a profit but because of wrong accounting, the annual accounts show a loss, the proprietor may take the decision to sell the business at a loss. Thus from the point of view of the management itself, authenticity of financial statements is essential. It is more essential for those who have invested their money in the business but cannot take part in its management, for example, shareholders in a company, such persons certainly need an assurance that the annual statements of accounts sent to them are fully reliable. It is auditing which ensures that the accounting statements are authentic. In todays economic environment, information and accountability have assumed a larger role than ever before. As a result, the independent audit of an entitys financial statements is a vital service to investors, creditors, and other participants in economic exchange.

M.COM-2(SEM-3)

Page 5

AUDIT REPORT OF TATA MOTORS

3. FUNCTIONS AND OBJECTIVE OF AUDITING

FUNCTIONS OF AUDITING

Important functions of auditing can be summed up as follows: Reviewing systems and procedures of business. Examining documentary evidence to establish the accuracy of recorded transactions. Reviewing the system of accounting and Internal Controls. To verify the valuation and existence of assets. To examine the mathematical accuracy of accounting statements. To see whether the statutory requirements have been complied with. Reporting as to what extent, accounts exhibit true and fairness. To make recommendations for improvement in Internal Control and Accounting System. To verify the distinction between capital and revenue items.

OBJECTIVES OF AUDITING

(A) Verification of accounts and financial statement The main objective of an audit is to verify and establish that at a given date balance sheet presents true and fair view of financial position of the business and the profit and loss account gives the true and fair value of the profit or loss for the accounting period. The auditor must:Verify the accuracy of posting, balancing etc Confirm the validity of transactions with supporting documents Confirm existence of assets and liabilities Assess the system of internal control Ascertain whether distinction has been made between capital and revenue items (B) Fraud Fraud is the word used to mean intentional error. This is done deliberately which implies that there is intent to deceive, to mislead. These are more serious than intentional errors. A great variety of intentional errors may be found. Intentional errors M.COM-2(SEM-3) Page 6

AUDIT REPORT OF TATA MOTORS are the most difficult to detect and auditors generally devote greater attention to this type. Auditors while studying the possibility and nature of fraud must keep this always in mind and should not take any exception for those who held high offices. These things generally start in a non-consequential way after a subordinate staff member first borrow small amounts from the cash box to meet his temporary difficulty and gradually it becomes his habit to borrow in such a manner. Fraud also takes place in forms other than cash defalcations.

FRAUDS MAY BE DIVIDED INTO THE FOLLOWING CATEGORIES:-

Misappropriation of goods In these types the businessman appropriates the goods to wrong accounts for committing frauds and escaping from tax liabilities. Misappropriation of goods can be detected by thorough checking of records and physical verification of stock as well as purchase and sale.

Misappropriation of cash This system can be done by theft of cash receipts, petty cash cheques, creditors, purchases etc. The transaction relating to the receipt of cash are omitted from the records or recorded with lesser amount in the cash book. Some of the examples are as follows:Cash sale may not be recorded at all Omitting credit not received from supplier and discount allowed to them

Manipulation of accounts These frauds may be committed by manipulated wrong statement and accounts. These are made only to give fraud to the higher authorities. This type of fraud is committees by manager, director or board of directors.

M.COM-2(SEM-3)

Page 7

AUDIT REPORT OF TATA MOTORS

(C) Detection and Prevention of Errors Accounting is the device for collecting and presenting useful information in financial terms about a business enterprise. It should as well be recognized that accounting data may contain errors for a variety of reasons. Even today human element is the most important element of recording and processing the accounting data. It is the management that is responsible for prevention of errors and fraud.

M.COM-2(SEM-3)

Page 8

AUDIT REPORT OF TATA MOTORS

4. PRINCIPLE GOVERNING AN AUDIT & ASPECTS TO BE C0VERED IN AUDIT

PRINCIPLES GOVERNING AN AUDIT


Principle of Independence The audit work should be independent from accountancy and the auditor should examine the books of accounts indifferently and independently. He should be free from any such interests which may affect his integrity and objectivity.

Principle of Objectivity The audit work should be based on evidence and should be done impartially and in an unbiased way.

Principle of Materiality The principle of materiality is and has always been fundamental to the whole process of counting. An auditor has also to be quiet concerned regarding the concept of materiality. The auditor has to analyze and take decisions regarding various items whether they are material or not during the course of audit. In case the auditor finds that an item is quiet material in nature he would have to give careful consideration to its checking and would care for more evidence in support.

Confidentiality The auditor should maintain the confidentiality of the clients information. It is well said that an auditor keeps his ears and eyes open, but his mouth shut. He should disclose the information only when:He has obtained permission of his client. There is legal or professional duty to do so.

Work performed by others The auditor can delegate work to assistants or can use work performed by others, auditors or experts. But he will continue to be responsible for expressing an opinion of financial statements. The auditor should obtain reasonable assurance that work Page 9

M.COM-2(SEM-3)

AUDIT REPORT OF TATA MOTORS performed by other auditors or experts is adequate for his purpose. ICAI has issued AAS-7, AAS-9, AAS-10, AAS-12 and AAS-17 in regard to this issue.Documentation Documentation is an important aspect of any audit. An auditor should maintain sufficient working papers for each audit assignment. Such documentation is very important in providing evidence that the audit was carried out in accordance with the basic principles.

Planning The Auditor should plan his work to enable him to conduct an effective audit in an efficient and timely manner. Plans should be based on knowledge of business client. Plans should be revised as necessary during the course of audit. AAS-8 issued by ICAI deals with aspects of planning.

Audit Evidence The information which may be oral or written, obtained for the purpose of the audit is known as audit evidence. Auditor should obtain sufficient and appropriate evidence to enable him to draw conclusions so as to make an opinion on financial statements. Audit evidence can be obtained with the help of following:Compliance Procedures Substantial Procedures Tests of Details Analytical Procedures

Accounting System and Internal Control Management is responsible for maintaining an auditable adequate accounting system incorporating various internal controls to the extent appropriate to the size and nature of the business. The internal controls contribute to audit assurance that the accounting system is adequate and that all the accounting information has been duly recorded. AAS-6 has established standards for obtaining an understanding of accounting and internal control system. Audit Conclusion and Reporting Auditor should review and assess the conclusions drawn from the audit evidence obtained. He should assess whether the financial information complies with recognized accounting principles. He should also assess the disclosure requirements. The audit M.COM-2(SEM-3) Page 10

AUDIT REPORT OF TATA MOTORS report should contain a clear and written expression of opinion on financial information. AAS-28 describes the elements and types of audit report.

ASPECTS TO BE COVERED IN AUDIT


The principal aspects to be covered in an audit concerning final statements of accounts are as follows: An examination of the system of accounting and integral controls to ascertain whether it is appropriate for the business and helps in properly recording all transactions. Reviewing the systems and procedures to find out whether they are adequate and comprehensive. Check the arithmetical accuracy of books of accounts by the verification of postings, balances etc. Examine the documentary evidence to establish the accuracy, authenticity and validity of transactions recorded. Verifying that a proper distinction is made between capital and revenue items. Verification of the title, existence and valuation of assets appearing in the balance sheet. Examination that the statutory requirements are complied with. Verifications of the liabilities stated in the balance sheet. Comparison of balance sheet and profit and loss account and other statements with underlying records in order to see that they are in accordance there with. Checking the results shown by the balance sheet and profit and loss account to see whether the results shown are true and fair. Reporting to the proper person as to what extent, accounts reveal a true and fair view of the state of affairs and of the profit and loss account of the organization.

M.COM-2(SEM-3)

Page 11

AUDIT REPORT OF TATA MOTORS

5. ADVANTAGES AND LIMITATIONS OF AUDITING:ADVANTAGES :-

The fact that audit is compulsory by law, in certain cases by itself should show that there must be some positive utility in it. The chief utility of audit lies in reliable financial statements on the basis of which the state of affairs may be easy to understand. Apart from this obvious utility, there are other advantages of audit. Some or all of these are of considerable value even to those enterprises and organizations where audit is not compulsory, these Advantages are given below:-

(a) It safeguards the financial interest of persons who are not associated with the management of the entity, whether they are partners or shareholders. (b) It acts as a moral check on the employees from committing defalcations or embezzlement. (c) Audited statements of account are helpful in settling liability for taxes, negotiating loans and for determining the purchase consideration for a business. (d) These are also useful for settling trade disputes for higher wages or bonus as well as claims in respect of damage suffered by property, by fire or some other calamity. (e) An audit can also help in the detection of wastages and losses to show the different ways by which these might be checked, especially those that occur due to the absence or inadequacy of internal checks or internal control measures. (g) Audit ascertains whether the necessary books of account and allied records have been properly kept and helps the client in making good deficiencies or inadequacies in this respect (h) As an appraisal function, audit reviews the existence and operations of various controls in the organizations and reports weaknesses, inadequacies, etc., in them.

M.COM-2(SEM-3)

Page 12

AUDIT REPORT OF TATA MOTORS

LIMITATIONS OF AUDIT
At this stage, it must be clear that the objective of an audit of financial statements is to enable an auditor to express an opinion on such financial statements. In fact, it is the auditors opinion which helps determination of the true and fair view of the financial position and operating results of an enterprise. It is very significant to note that the AAS-2 makes it a subtle point that such an opinion expressed by the auditor is neither an assurance as to the future viability of the enterprise nor the efficiency or effectiveness with which management has conducted affairs of the enterprise. Further, he process of auditing is such that it suffers from certain inherent limitations, i.e., the limitation which cannot be overcome irrespective of the nature and extent of audit procedures. It is very important to understand these inherent limitations of an audit since understanding of the same would only provide clarity as to the overall objectives of an audit. The inherent limitations are :-

(i) First of all, auditors work involves exercise of judgment, for example, in deciding the extent of audit procedures and in assessing the reasonableness of the judgment and estimates made by the management in preparing the financial statements. Further much of the evidence available to the auditor can enable him to draw only reasonable conclusions there from. The audit evidence obtained by an auditor is generally persuasive in nature rather than conclusive in nature. Because of these factors, the auditor can only express an opinion. Therefore, absolute certainty in auditing is rarely attainable. There is also likelihood that some material misstatements of the financial information resulting from fraud or error, if either exists, may not be detected

M.COM-2(SEM-3)

Page 13

AUDIT REPORT OF TATA MOTORS

6. MEANING OF AUDITOR
The person conducting audit is known as the Auditor; he makes a report to the person appointing him after due examination of the accounting records and the accounting statement in the form of an opinion on the financial statements. The opinion that he is called upon to express is whether the financial statement reflect a true and fair view. Auditing, especially of companies and for public purposes has become the preserve of persons having recognized professional training and qualification. In India, under the authority of the Companies Act, 1956, only Chartered Accountants are professionally qualified for the audit of the accounts of companies... Chartered Accountants are in a position to undertake auditing of almost any accounting aspect, unlike cost accountants whose sphere has been restricted to audit of the cost accounting records and statements. It is C.A. or a firm whose all partners are Chartered Accountants who act as auditors in India.

TYPES OF AUDITORS:-

Functional Classification of Auditors :Internal vs. External Auditors External auditors are the persons who practice the profession of accountancy having qualified in the professional examination and are external vis--vis the organizational which they audit the accounts. The Internal auditors, on the other hand, may also be professionally qualified and are internal vis--vis the organization in which they are appointed to perform specific work.

There are following types of audit Statutory Audit Nonstatutory Audit External Audit Internal audit Final Audit social audit performance Audit

M.COM-2(SEM-3)

Page 14

AUDIT REPORT OF TATA MOTORS Statutory audit: This is the audit governed by statute such as the company's Act....

Non statutory audit : This are the audit not specially required by law this scope of the audit will be outline by the contract between the auditor and the clients.

External audit :external audit is that which is critical review of the representation of the published financial statements it is compulsary for all company;s which are listed in the stock exchange.

Internal Audit: this is a review of operation carried out sometimes continuosly specially assigned staff with in the client business.

Final Audit: final audit is commenced when all account has been closed and final accounts is been prepared.

Social Audit: social audit is performed to know the corporate social responsibility.

What is an auditor's report? Definition: an auditor's report provides an opinion of the validity and reliability of a company or organizations financial statements. When financial statements are finalized, they usually must contain an evaluation an auditor's report - from an accountant or auditor. The audit report evaluates the validity and reliability of a company or organizations financial statements.

The goal of an auditor's report is ultimately to document reasonable assurance that a companys financial statements are free from material error.

M.COM-2(SEM-3)

Page 15

AUDIT REPORT OF TATA MOTORS

Preparing the auditor's report


An audit of a companys financial statements should result in a report where the accountant or auditor is free to share their opinion about the validity and reliability of a companys financial statements.

In this report, the auditor should give a true picture of the company and their financial statements. The auditor should also state their connection with the financial statements, and whether they are externally or internally connected to the company.

In their report, the auditor can also share any reservations or additional information. Reservations could arise if the auditor disagrees something within the financial statements, e.g. if the auditor disagrees with management about the valuation of an asset and they believe that this has a significant impact on the of financial statements. What must an auditor's report contain? There are rules about what an auditor's report should include, and in what order various items should be reported.

Auditor's reports must adhere to generally accepted standards established by governing bodies. Standards such as the UK Generally Accepted Accounting Practice help to assure external users that the auditor's opinion on the fairness of financial statements is based on a commonly accepted framework.

A typical auditor's report will state: 1. 1. The company that has been audited and what their accounting method is 2. 2. The responsibility of the auditor and their report 3. 3. Reservations (if any) 4. 4. Conclusion 5. 5. Any additional information* 6. 6. A management report* 7. 7. The date and auditors signature

M.COM-2(SEM-3)

Page 16

AUDIT REPORT OF TATA MOTORS

7. POWERS & DUTIES OF AUDITOR

POWERS OF AUDITORS
The rights of the company auditor can not be limited or abridged in any way. Any resolution limiting the powers of the auditor or any such provision in articles of association will be void. Following are powers/rights of auditors:-

Access to books and vouchers Every auditor of company shall have a right to access at all times to the books and accounts and vouchers, whether kept at head office of company or elsewhere. Auditor is not required to wait for the closing of accounts for conducting the audit. The words all times means only the normal business hours. All types of documents, agreements, correspondences, financial books, statistical books, memorandum books, etc are covered.

Right to obtain information and explanations Auditor may require the officers of the company to provide such information as he may think necessary for the permanence of his duties. It will be obligatory for the officers of the company to furnish without delay the relevant information to the auditors.

Right to visit branch offices and access to branch accounts Where accounts of any branch office are audited by another person, the company auditor: Shall be entitled to visit the branch office, if he deems it necessary to do so for the performance of his duties as auditor Shall have a right to access at all times to books and accounts and vouchers of the company maintained at the branch office.

Right to attend General Meeting All the notices and other communications relating to any general meeting also be forwarded to the auditors of a company along with shareholders/members. Auditors shall be entitled to attend any general meeting and to be heard at any general meeting Page 17

M.COM-2(SEM-3)

AUDIT REPORT OF TATA MOTORS which he attends on any part of the business which concerns him as auditor.

Auditors lien Auditors lien on his clients books and records is unconditional. Auditor can exercise lien on books and documents subject to following conditions:Documents retained must belong to client Such documents must be in possession of auditor on clients authority On such documents, some work must have been done The fees for work performed must be outstanding.

Right to receive remuneration Remuneration of the auditor of a company may be fixed by the authority which appoints him. Therefore, Board of Directors will fix remuneration in case of first auditors or auditors appointed to fill up casual vacancy. If he is appointed at the annual general meeting his remuneration will be fixed by the company at the general meeting. A separate disclosure of all the amounts paid to the auditor in whatever capacity and whether as fees or expenses, is required to be made in profit and loss account, classified as follows:(a) As auditor (b) As advisor or in any other capacity in respect of:

DUTIES OF AUDITOR
The statutory duties of an auditor cannot be limited in any way either by Articles of Association or Directors or by members. However, a company may extend them. The following are the duties that the auditor has to perform:

Auditor has to state whether in his opinion and to the best of his information and according to the explanations given to him, the accounts, give a fair and true view in the case of the balance sheet, of the state of the companys affairs as at the end of its financial year and in the case of the profits and loss account, of the profits and losses for its financial year. Following guidelines may be laid down in this regard: Balance sheet and profit and loss account should be as per requirements of The

M.COM-2(SEM-3)

Page 18

AUDIT REPORT OF TATA MOTORS Companies Act, 1956 There should be no window dressing All material facts should be properly disclosed All usual, exceptional or non recurring items should be disclosed separately The financial statements should convey the required information clearly Auditor has to state whether he has obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of his audit. He is required to state whether in his opinion, proper books of accounts as required by law have been kept by the company, so far as appears from his examination of these books, and proper returns adequate for the purpose of his audit have been received from branches not visited by him. Whether in his opinion the balance sheet and profit and loss account comply with the accounting standards referred in Section 211 of The Companies Act, 1956. Auditor is required to state whether any director is disqualified from being appointed as director under Section 274 He will state whether the cess payable under Section 441A of the act has been paid by the company and if the same remains to be paid, details thereof. Whether the companys balance sheet and profit and loss account dealt with by the reports are in agreement with the books of accounts and returns. He will state whether the report on the account of any branch office audited under Section 228 by a person other than the company auditor has been forwarded to him and how he was dealt with the same in preparing auditors report.

M.COM-2(SEM-3)

Page 19

AUDIT REPORT OF TATA MOTORS

8. INTRODUCTION ABOUT TATA MOTORS:


Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The Company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The Company's 24,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The Company is establishing a new plant at Sanand (Gujarat). The Company's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first Company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach M.COM-2(SEM-3) Page 20

AUDIT REPORT OF TATA MOTORS manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the Company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The Company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. The foundation of the Company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 3,000 engineers and scientists, the Company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The Company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost).

M.COM-2(SEM-3)

Page 21

AUDIT REPORT OF TATA MOTORS Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than twowheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies conservation. Through its subsidiaries, the Company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The Company's support on education and employability is focussed on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative healthcare. The goal of environment in manufacturing processes, significantly enhancing resource

M.COM-2(SEM-3)

Page 22

AUDIT REPORT OF TATA MOTORS protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

M.COM-2(SEM-3)

Page 23

AUDIT REPORT OF TATA MOTORS

9. HISTORY OF TATA MOTORS:


The Tata Group was founded in 1868 when India was under British Empire. The group formed their textile business in 1874 and Steel manufacturing in 1907. In 1945, Tata Sons Limited started the automotive business with manufacturing steam locomotive boilers after purchasing the shops of East Indian Railways from Government of India, which was under the British Government in that year.

After purchasing these shops, the Tata sons decided to establish Tata Engineering and Locomotive Company Limited (TELCO Limited) and establish the primary manufacturing facility in Jamshedpur (an industrial city in Eastern India). This company was managed by J.R.D. Tata from 1945 to 1973 and by Sumand Moolgaokar from 1973 to 1988.

Sumand established the second manufacturing facility in Pune India looking into the boom in the auto market. In 1991 Ratan Tata took over the Tata Empire from his uncle and moved the Tata group out of the sectors where they were not very competitive like Cement and Textiles. Today, Tatas largest manufacturing businesses are Steel and Motors after the consolidation carried out by Ratan Tata. As on end of financial year 2008, the Tata Group has an annual turnover in excess of $30 Billion out of which more than $9 Billion is contributed by Tata Motors.

TELCO Limited is now widely known as Tata Motors that is among the worlds top five manufacturers of medium and heavy trucks and worlds second largest manufacturer of medium and heavy busses. Tata possess a strategic engagement with Mercedes Benz for assembling and selling Mercedes Benz commercial vehicles and passenger cars in India.

M.COM-2(SEM-3)

Page 24

AUDIT REPORT OF TATA MOTORS Another strategic tie up that they possess is with Cummins pertaining to their diesel engines through Tata Holset Limited. In fact, Tata Motors contributed to the Cummins Diesel engines by adding turbo chargers on them vide their joint manufacturing operations with Tata Holset Limited.

The only partnership of Tata that didnt go well was with Rover Group of Britain that went bankrupt in year 2005. Tata tried entering the European markets through a model named CityRover that faired poorly due to its negative publicity, higher price and poor quality compared to the competition.Ratan Tata is now 70 years old but still presents the image of a dynamic, innovative and revolutionary entrepreneur. He is known for high aggressive moves for the benefits of Tata Motors customers. In 1997, Tata Motors launched its first indigenously developed car named Indica that currently possesses more than 15% of the car market share in India.

The other car models of Tata Motors that are popular in India and some markets of Asia are Tata Indigo, Tata Sierra, Tata Sumo and Tata Safari. In 2008, Tata achieved a global publicity due to two major activities that made headlines worldwide. In the Geneva Motor show they presented their four-seater small car named Nano priced about $2500 which is expected to be the cheapest car of the world.

In March 2008, Tata Motors acquired the two globally prestigious companies Jaguar and Land Rove from Ford Motor Company. It is assessed that Tata Motors did so to achieve a new image of a global automotive company like Ford Motor Company given that their business span has largely remained indigenous within India for a long time.

M.COM-2(SEM-3)

Page 25

AUDIT REPORT OF TATA MOTORS

10. AUDITOR'S REPORT OF TATA MOTORS


Year End : Mar '13

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

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 (the Act) and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the

M.COM-2(SEM-3)

Page 26

AUDIT REPORT OF TATA MOTORS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

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

OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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

M.COM-2(SEM-3)

Page 27

AUDIT REPORT OF TATA MOTORS Report on Other Legal and Regulatory Requirements

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

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

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

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

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

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

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

M.COM-2(SEM-3)

Page 28

AUDIT REPORT OF TATA MOTORS ANNEXURE TO THE INDEPENDENT AUDITORS REPORT

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

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

(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;

(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, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification;

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

(iii) In respect of its inventories: (a) As explained to us, the stock of finished goods (other than a significant part of the spare parts held for sale) and work-in-progress in the Companys custody have been physically verified by the Management as at the end of the financial year, before the year-end or after the year-end, and in respect of stocks of stores and spares, the aforesaid spare parts held for sale and raw materials in the Companys custody, there is a perpetual inventory system and a substantial portion of the stocks have been verified during the year. In our opinion, the frequency of verification is reasonable. In case of materials and spare parts held for sale lying with the third parties, certificates confirming stocks have been received in respect of a substantial portion of the stocks held during the year or at the year-end; M.COM-2(SEM-3) Page 29

AUDIT REPORT OF TATA MOTORS

(b) In our opinion and according to the information and explanations given to us, 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;

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

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

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

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

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

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

M.COM-2(SEM-3)

Page 30

AUDIT REPORT OF TATA MOTORS In respect of loans, secured or unsecured, taken by the Company from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956, according to the information and explanations given to us:

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

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

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

(v) In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, 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. During the course of our audit, we have not observed any major weakness in such internal control system.

(vi) In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, 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 in Section 301 that needed to be entered in the Register maintained under the said Section have been so entered.

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

M.COM-2(SEM-3)

Page 31

AUDIT REPORT OF TATA MOTORS (vii) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. According to the information and explanations given to us, 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.

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

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

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

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

(b) There were no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material

M.COM-2(SEM-3)

Page 32

AUDIT REPORT OF TATA MOTORS statutory dues in arrears as at March 31, 2013 for a period of more than six months from the date they became payable.

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

Nature of Dues

Forum where Dispute is


Commissioner (Appeals) Appellate Tribunal Tribunal Commissioner (Appeals) Additional Commissioner Joint Commissioner

Income tax Income tax

Central Excise Laws

Excise Duty & Service Tax Excise Duty & Service Tax Excise Duty & Service Tax 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 Sales Tax Sales Tax Sales Tax Name of Statute

Deputy Commissioner Asst. Commissioner Supreme Court High Court Tribunal Commissioner (Appeals) Joint Commissioner Additional Commissioner Deputy Commissioner Assistant Commissioner Trade Tax Officer Amount Involved (Rs. in

Period to which the Amount Relates

M.COM-2(SEM-3)

Page 33

AUDIT REPORT OF TATA MOTORS


crores.) Income tax 2003-04 to 2009-10 2007-08 Central Excise Laws 1993-94, 1999-00, 2002-03, 2004-05 to 2012-13 1984-85, 1995-96, 2003-04, 2006-07, 2010-11, 2011-12, 2012-13 2012-13 2012-13 2012-13 2012-13 Sales Tax Laws 1995-96 1984-85 to 1988-89, 1990-91, 1993-94, 1994-95, 1997-98, 1999-00, 2005-06 to 2007-08 1988-89, 1989-90, 1995-96, 1998-99, 1999-00, 2000-01, 2004-05, 2007-08, 2010-11 44.97 3.40 2249.15 83.13 0.66 0.21 0.04 0.09 13.01 18.83

7.21

1996-97, 1998-99, 2001-02 1997-98, 1999-00, 2001-02 to 2008-09 1988-89, 1989-90, 1995-96, 1997-98, 2005-06 to 2009-10, 2012-13 1979-80, 1986-87, 1991-92, 1992-93, 1994-95 to 1997-98, 2000-01,2003-04, 2005-06, 2008-09 1986-87, 1988-89, 1990-91, 1995-96, 1997-98, 1999-00, 2010-11 1995-96, 1996-97, 1998-99 to 2000-01, 2006-07

0.20 222.33 19.46

3.68

1.06

1.83

M.COM-2(SEM-3)

Page 34

AUDIT REPORT OF TATA MOTORS (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.

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

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

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

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

(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, as at March 31, 2013, we report that funds raised on short term basis of Rs.8,439.39 crores have been used during the year for long-term investment. Further the Company has explained that steps are being taken to augment long term funds.

(xvii) According to the information and explanations given to us, 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, 1956.

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

M.COM-2(SEM-3)

Page 35

AUDIT REPORT OF TATA MOTORS (xix) According to the information and explanations given to us, during the year covered by our audit report, the Company has not raised any money by public issue.

(xx) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS Chartered Accountants (Firm Registration No. 117366W) N. VENKATRAM Partner (Membership No. 71387)

MUMBAI, May 29, 2013 Source : Dion Global Solutions Limited

M.COM-2(SEM-3)

Page 36

AUDIT REPORT OF TATA MOTORS

11. COMMENTS ON AUDITOR'S REPORT OF TATA MOTORS


. 1. Tata motor company is the company with a profit and loss statement which is declared at the end of the month i.e. 31st march 2013. which is good for the company to know the profit and loss at the end of the month which is declared on time. 2. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions, banks and debenture holders. 3. To the best of our knowledge 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. 4. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. 5. 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. 6. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions, banks and debenture holders. 7. Based on our examination of the records and the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 8. TATA MOTORS COMPANY which provides fair view and are free from material. It does not uses fraud or error materials or things. An auditor provides a better accounting policies. 9. Tata motors have obtained the better information and the best of the knowledge. They also keep the true books of accounts. The records of all the books is received from the directors, board of directors. Etc 10. All the records are maintained in a proper manner and also in quantitative details. In this company, the verification of all the records is done on time to time.

M.COM-2(SEM-3)

Page 37

AUDIT REPORT OF TATA MOTORS 11. The assets which gets disposed during the year, the company does not use the disposed assets they just used the fresh and fair assets for the company. So that the status of the company remains the same. 12. Tata motors company follows the information and explanation which is given to them so that they can maintained the proper records. In tata motors company , the payments of principal amounts an interest are regular. 13. In this company, the information and the explanations which they get , in which no order has been passed by the law of the company or the national company law tribunal. In this company, there is no losses yet has been done at the end of the financial year. 14. In tata motors company, all the money is covered by the audit report. So that the company does not raise any money of public issue. In this company. No fraud by the company and no material fraud on the company has been noticed or reported during the year.

15. In this company, they does not give any guarantee for loans taken by others from banks of financial institution.

M.COM-2(SEM-3)

Page 38

AUDIT REPORT OF TATA MOTORS

12. CONCLUSION
Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, South America, CIS and Russia. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal. Tata Motors also introduced India's first Sports Utility Vehicle in 1991 and, in 1998, the Tata Indica, India's first fully indigenous passenger car. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano. The Tata Nano has been subsequently launched, as planned, in India in March 2009, and subsequently in 2011 in Nepal and Sri Lanka. A development, which signifies a first for the global automobile industry, the Nano brings the joy of a car within the reach of thousands of families. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource

conservation. Through its subsidiaries, the company is engaged in engineering and automotive solutions, automotive vehicle components manufacturing and supply chain activities, vehicle financing, and machine tools and factory automation solutions. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas - employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, the company's intervention is in both preventive and curative health care. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in vehicles and operations for constantly enhancing environment care.

M.COM-2(SEM-3)

Page 39

AUDIT REPORT OF TATA MOTORS

13. BIBLIOGRAPHY

1. ^ "Audit assurance". 2. ^ Auditing and Assurance. ICAI. July 2012. p. 1.1. 3. ^ McKenna, Francine. "Auditors and Audit Reports: Is The Firm's "John Hancock" Enough?". Forbes. Retrieved 22 July 2011. 4. http://www.tata.com 5. http://tatamotors.com 6. http://www.wikipedia.com

M.COM-2(SEM-3)

Page 40