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Tata Motors
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Mar 12
Auditor's Report (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 Companys 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 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.
 
 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.
 
 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;
 
 (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.
 
 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.
 
 (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 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       Nature of Dues                Forum where
 Statute                                     Dispute is Pending
 
 Income tax    Income tax                    Commissioner (Appeals)
 
               Income tax                    Appellate Tribunal
 
 Central 
 Excise        Excise Duty & Service Tax     Tribunal
 Laws 
               Excise Duty & Service Tax     Commissioner (Appeals)
 
               Excise Duty & Service Tax     Additional Commissioner
 
               Excise Duty & Service Tax     Joint Commissioner
 
               Excise Duty & Service Tax     Deputy Commissioner
 
               Excise Duty & Service Tax     Asst. Commissioner
 
 Sales Tax 
 Laws          Sales Tax                     Supreme Court
 
               Sales Tax                     High Court
 
               Sales Tax                     Tribunal
 
               Sales Tax                     Commissioner (Appeals)
 
               Sales Tax                     Joint Commissioner
 
               Sales Tax                     Additional Commissioner
 
               Sales Tax                     Deputy Commissioner
 
               Sales Tax                     Assistant Commissioner
 
               Sales Tax                     Trade Tax Officer
 
 Name of Statute      Period to which the Amount Relates       Amount 
                                                               Involved
                                                              (Rs. in 
                                                               crores.)
 
 Income tax           2003-04 to 2009-10                        44.97
 
                      2007-08                                    3.40
 
 Central Excise Laws  1993-94, 1999-00, 2002-03, 2004-05 
                      to 2012-13                              2249.15
 
                      1984-85, 1995-96, 2003-04, 2006-07,
                      2010-11,                                  83.13
                      2011-12,  2012-13
 
                      2012-13                                    0.66
 
                      2012-13                                    0.21
 
                      2012-13                                    0.04
 
                      2012-13                                    0.09
 
 Sales Tax Laws       1995-96                                   13.01
 
                      1984-85 to 1988-89, 1990-91, 
                      1993-94, 1994-95,                         18.83
                      1997-98, 1999-00, 2005-06 to 2007-08 
 
                      1988-89, 1989-90, 1995-96, 1998-99, 
                      1999-00,                                   7.21
                      2000-01, 2004-05, 2007-08, 2010-11
 
                      1996-97, 1998-99, 2001-02                  0.20
 
                      1997-98, 1999-00, 2001-02 to 2008-09     222.33
 
                      1988-89, 1989-90, 1995-96, 
                      1997-98, 2005-06 to                       19.46 
                      2009-10, 2012-13
 
                      1979-80, 1986-87, 1991-92, 1992-93, 
                      1994-95 to                                 3.68
                      1997-98, 2000-01,2003-04, 2005-06, 
                      2008-09
 
                      1986-87, 1988-89, 1990-91, 1995-96, 
                      1997-98,                                   1.06 
                      1999-00, 2010-11
 
                      1995-96, 1996-97, 1998-99 to 
                      2000-01, 2006-07                           1.83
 
 (xi) The Company does not have any accumulated losses at the end of the
 financial 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.
 
 (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
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