TATA MOTORS FINANCE LIMITED Directors’ Report March 2015To, ‘THE MEMBERS ‘TATA MOTORS FINANCE LIMITED ‘The Directors feel privileged to present the Sth Annual Report on the business end operations of the ‘company and the statement of accounts for the year ended March 31, 2015, 1. Fivanciat Resuuts Figures in Crore Particulars 2014-15 | 2013-14 Total Income oe 2748.45 { 3034.02 ‘Less: Finance Costs 1758.98 | 1733.76 Expenditure 176113 | 1195.41 Depreciation / Amortization 19.82 23.68 | Profit/ (Loss) Before Exceptional Item (798.53) [455.33 Exceptional item 742.83 : Profit/ (Loss) Before Tax (52.58) | 755.33 Less: Tax Expense 233.35 34.46 Profit/ (Loss) After Tax eos [100.88 Balance brought forward from previous year 368.44 | 333.00 ‘Amount Available for Appropriations Saga1[ 433.87 "APPROPRIATIONS | General Reserve -t Stotutory Reserve 3485 [2078 Dopreciation on account of transition to Schedule of the Companies Act, 2023 1.00 Proposed Dividend 39.57 38.68 Tax on Dividend 8.06 657 Surplus carried to Balance Sheet acaas[ 368.44 The Company Is registered with the Reserve Bank of India, under Section 45-1A of the RBI Act 1934, as 9 ‘Systemically Important, Non-Deposit taklag Non-Banking Finance Company’ (NBFC), classified as an Asset Finance Company. The Company has transferred 20% of the Net profit Le., Rs. 34.85 to Statutory Reserve created pursuant to the provisions of the RBI Act, 1934.2. DIVIDEND The Board of Directors is pleased to recommend a dividend of Rs.0.30 per equity share (previous year Rs.0.30 per share), payable to those Members whose names anpear In the Reglster of Members as on the date of book closure, The dividend, including dividend tox, will absorb a sum of Rs.47.63 Crores. 3. InpusTRY Position The Company is a wholly owned subsidiary of Tata Motors Limited (TML). TMFL is the largest captive NBFC in India and to date the company is the targest financer of vehicles manufactured by TML with more than 20 Lakhs customers financed in commercial and passenger vehicle segments put together. As on 31" March 2015, TMFL operated out of pan-india branch network of 200+ branches across India and soles representations at over $00 TMI Dealer Locations and 200+ Direct Selling Agents. As on March 31, 2015, the company had a net worth of Rs 3,176 Crores and a total managed asset base of Rs. 16,069 Crores. 4. BUSINESS Economy ‘The domestic CV industry gradually came out of the down cycle during FY15 after two years of demand contraction. During the year, the M&HCV segment recorded a growth of 16.0% in unit sales primarily led by sharp uptick in replacement demand for Heavy Commercial Vehicles (HCVs) and Improvement In bus sales on back of STU orders. The pick-up in M&HCV sales albeit on a low base was driven by gradual improvement in operating environment for fleet operators (as reflected by firm freight rates despite correction in diese! prices), expectations of pick-up In Investments In infrastructure as well as manufacturing space along with renewal of mining activitles. While the M&HCV segment seems to have bottomed out, the LCV Truck segment {5 stil experiencing sluggtsh trends (down 12.67 Year on Year) as significant capacity addition over the past few years and constrained financing environment amidst rising delinquencies remains a challenge for the segment, Financial Performance Due to sluggish economic environment, total disbursements (including refinance) by the Company declined by 17% at Rs. 7,316 Crores as compared to Rs, 8,768 Crores In the previous year. The Company financed a total of 222,788 vehicles reflecting a decline of 29% over the 157,886 vehicles financed in the previous year. ‘The major reason for drop In number of contracts booked was the drop in SCV and ICV business due to discontinuation of Low Down Payment (LDP) schemes and {ower sales by Tata Motors in these segments.