Report on the Financial Statements
We have audited the accompanying financial statements of TATA MOTORS
LIMITED (the Company), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financia performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act) (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs)
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 materia 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 reguire that we comply with
ethical reguirements 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 auditor''s 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
Company''s 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 Company''s 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 reguired by the Act in the manner so reguired 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 31,2014;
(b) in the case of the Statement of Profit and Loss, 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 reguired by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government in terms of Section 22 7(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 reguired 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 reguired by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, 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 Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated September 13,2013 of the Ministry of Corporate Affairs).
(e) On the basis of the written representations received from the
directors as on March 31,2014 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2014
from being appointed as a director in terms of Section 274(l)(g) of the
Act.
(Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements section of our report of even date to the Members of Tata
Motors Limited)
(i) Having regard to the nature of the Company''s 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 guantitative 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
explanation 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 and
work-in-progress in the Company''s 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, other than a significant part of the
spare parts held for sale, and raw materials in the Company''s custody
for both of which, there is a perpetual inventory system and a
substantial portion of the stocks have been verified during the year.
In our opinion, the freguency 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 periodically for
stocks held during the year and for a substantial portion of such
stocks held 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 adeguate 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.146.28
crores to two parties during the year. At the year-end, the outstanding
balances of such loans granted aggregated Rs.562.69 crores (number of
parties -three) and the maximum amount involved during the year wasRs.
875.18 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 interests of
the Company having regard to the business relationship with the
companies to whom loans have been granted.
(c) The receipts of principal amounts have been as per stipulations.
However, there are delays in receipt of interest.
(d) In respect of overdue interest amounts of over Rs. 1 lakh remaining
outstanding as at the year-end, as explained to us, Management has
taken reasonable steps for recovery of the interest amount.
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:
The Company has not taken any loans from such parties during the year
accordingly clauses (iii) (b) to (iii) (d) of Paragraph 4 of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
(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 guotations, there is an
adeguate 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 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 (excluding loans reported under
paragraph (iv) above) is in excess of Rs. 5 lakhs in respect of any
party, having regard to our comments in paragraph (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,
other than certain purchases which are of a special nature for which
comparable guotations are not available and in respect of which we are,
therefore, unable to comment if the transactions have been carried out
at prices 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 adeguate 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 made and 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. We are informed by the Company that the Employees''States
Insurance Act, 1948 is applicable only to certain locations of the
Company. 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 conseguently, 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 31,2014 for a period of more than six months from the date
they became payable.
(xi) The Company does not have any accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in 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) According to the information and explanations given to us, the
Company has not given guarantees 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, we report that funds raised on short-term basis aggregatingRs.
11,521.20 crores have been used for long-term investments. Further the
Company has explained that steps are being taken to augment long term
funds.
(xvii) During the year 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) 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 LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
B. P. SHROFF
Partner
(Membership No. 34382)
MUMBAI,May 29,2014
