Report on the Financial Statements

We have audited the accompanying financial statements of TATA MOTORS

LIMITE !"the #ompany"$% &hich comprise the 'alance Sheet as at March
()% *+),% the Statement of -rofit and Loss and the #ash Flo& Statement
for the year then ended% and a summary of the significant accounting
policies and other e.planatory information/
Management00s Responsi1ility for the Financial Statements
The #ompany00s Management is responsi1le for the preparation of these
financial statements that give a true and fair vie& of the financial
position% financia performance and cash flo&s of the #ompany in
accordance &ith the Accounting Standards notified under the #ompanies
Act% )234 !"the Act"$ !&hich continue to 1e applica1le in respect of
Section )(( of the #ompanies Act% *+)( in terms of 5eneral #ircular
)36*+)( dated Septem1er )(% *+)( of the Ministry of #orporate Affairs$
and in accordance &ith the accounting principles generally accepted in
India/ This responsi1ility 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 vie&
and are free from materia misstatement% &hether due to fraud or error/
Auditors00Responsi1ility
Our responsi1ility is to e.press an opinion on these financial
statements 1ased on our audit/ We conducted our audit in accordance
&ith the Standards on Auditing issued 1y the Institute of #hartered
Accountants of India/ Those Standards reguire that &e comply &ith
ethical reguirements and plan and perform the audit to o1tain
reasona1le assurance a1out &hether the financial statements are free
from material misstatement/
An audit involves performing procedures to o1tain audit evidence a1out
the amounts and the disclosures in the financial statements/ The
procedures selected depend on the auditor00s 7udgment% including the
assessment of the ris8s of material misstatement of the financial
statements% &hether due to fraud or error/ In ma8ing those ris8
assessments% the auditor considers internal control relevant to the
#ompany00s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances% 1ut not for the purpose of e.pressing an opinion on the
effectiveness of the #ompany00s internal control/ An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasona1leness of the accounting estimates made 1y the Management% as
&ell as evaluating the overall presentation of the financial
statements/
We 1elieve that the audit evidence &e have o1tained is sufficient and
appropriate to provide a 1asis for our audit opinion/
Opinion
In our opinion and to the 1est of our information and according to the
e.planations given to us% the aforesaid financial statements give the
information reguired 1y the Act in the manner so reguired and give a
true and fair vie& in conformity &ith the accounting principles
generally accepted in India9
!a$ in the case of the 'alance Sheet% of the state of affairs of the
#ompany as at March ()%*+),:
!1$ in the case of the Statement of -rofit and Loss% of the profit of
the #ompany for the year ended on that date: and
!c$ in the case of the #ash Flo& Statement% of the cash flo&s of the
#ompany for the year ended on that date/
Report on Other Legal and Regulatory Re;uirements
)/ As reguired 1y the #ompanies !Auditor00s Report$ Order% *++( !"the
Order"$ issued 1y the #entral 5overnment in terms of Section ** <!,A$
of the Act% &e give in the Anne.ure a statement on the matters
specified in paragraphs , and 3 of the Order/
*/ As reguired 1y Section **<!($ of the Act% &e report that9
!a$ We have o1tained all the information and e.planations &hich to the
1est of our 8no&ledge and 1elief &ere necessary for the purposes of our
audit/
!1$ In our opinion% proper 1oo8s of account as reguired 1y la& have
1een 8ept 1y the #ompany so far as it appears from our e.amination of
those 1oo8s/
!c$ The 'alance Sheet% the Statement of -rofit and Loss% and the #ash
Flo& Statement dealt &ith 1y this Report are in agreement &ith the
1oo8s of account/
!d$ In our opinion% the 'alance Sheet% the Statement of -rofit and
Loss% and the #ash Flo& Statement comply &ith the Accounting Standards
notified under the Act !&hich continue to 1e applica1le in respect of
Section )(( of the #ompanies Act% *+)( in terms of 5eneral #ircular
)36*+)( dated Septem1er )(%*+)( of the Ministry of #orporate Affairs$/
!e$ On the 1asis of the &ritten representations received from the
directors as on March ()%*+), ta8en on record 1y the 'oard of
irectors% none of the directors is dis;ualified as on March ()%*+),
from 1eing appointed as a director in terms of Section *<,!l$!g$ of the
Act/
!Referred to in paragraph ) under "Report on Other Legal and Regulatory
Re;uirements" section of our report of even date to the Mem1ers of Tata
Motors Limited$
!i$ =aving regard to the nature of the #ompany00s 1usiness 6 activities
6 results during the year% clauses !.iii$ and !.iv$ of paragraph , of
the Order are not applica1le to the #ompany
!ii$ In respect of its fi.ed assets9
!a$ The #ompany has maintained proper records sho&ing full particulars%
including guantitative details and situation of fi.ed assets:
!1$ The fi.ed assets &ere physically verified during the year 1y the
Management in accordance &ith a regular programme of verification
&hich% in our opinion% provides for physical verification of all the
fi.ed assets at reasona1le intervals/ According to the information and
e.planation given to us% no material discrepancies &ere noticed on such
verification:
!c$ The fi.ed assets disposed off during the year% in our opinion% do
not constitute a su1stantial part of the fi.ed assets of the #ompany
and such disposal has% in our opinion% not affected the going concern
status of the #ompany
!iii$ In respect of its inventories9
!a$ As e.plained to us% the stoc8 of finished goods and
&or8>in>progress in the #ompany00s custody have 1een physically verified
1y the Management as at the end of the financial year% 1efore the
year>end or after the year>end% other than a significant part of the
spare parts held for sale% and ra& materials in the #ompany00s custody
for 1oth of &hich% there is a perpetual inventory system and a
su1stantial portion of the stoc8s have 1een verified during the year/
In our opinion% the freguency of verification is reasona1le/ In case of
materials and spare parts held for sale lying &ith the third parties%
certificates confirming stoc8s have 1een received periodically for
stoc8s held during the year and for a su1stantial portion of such
stoc8s held at the year>end:
!1$ In our opinion and according to the information and e.planations
given to us% the procedures of physical verification of inventories
follo&ed 1y the Management &ere reasona1le and adeguate in relation to
the si?e of the #ompany and the nature of its 1usiness:
!c$ In our opinion and according to the information and e.planations
given to us% the #ompany has maintained proper records of its
inventories and no material discrepancies &ere noticed on physical
verification/
!iv$ In respect of loans% secured or unsecured% granted 1y the #ompany
to companies% firms or other parties covered in the Register maintained
under Section (+) of the #ompanies Act% )234% according to the
information and e.planations given to us9
!a$ The #ompany has granted unsecured loans aggregating Rs/),4/*@
crores to t&o parties during the year/ At the year>end% the outstanding
1alances of such loans granted aggregated Rs/34*/42 crores !num1er of
parties >three$ and the ma.imum amount involved during the year &asRs/
@<3/)@ crores !num1er of parties > four$/
!1$ The rate of interest and other terms and conditions of such loans
are% in our opinion% prima facie not pre7udicial to the interests of
the #ompany having regard to the 1usiness relationship &ith the
companies to &hom loans have 1een granted/
!c$ The receipts of principal amounts have 1een as per stipulations/
=o&ever% there are delays in receipt of interest/
!d$ In respect of overdue interest amounts of over Rs/ ) la8h remaining
outstanding as at the year>end% as e.plained to us% Management has
ta8en reasona1le steps for recovery of the interest amount/
In respect of loans% secured or unsecured% ta8en 1y the #ompany from
companies% firms or other parties covered in the Register maintained
under Section (+) of the #ompanies Act% )234% according to the
information and e.planations given to us9
The #ompany has not ta8en any loans from such parties during the year
accordingly clauses !iii$ !1$ to !iii$ !d$ of -aragraph , of the
#ompanies !Auditor00s Report$ Order% *++( are not applica1le to the
#ompany/
!v$ In our opinion and according to the information and e.planations
given to us% having regard to the e.planations that some of the items
purchased are of special nature and suita1le alternative sources are
not readily availa1le for o1taining compara1le guotations% there is an
adeguate internal control system commensurate &ith the si?e of the
#ompany and the nature of its 1usiness &ith regard to purchases of
inventory and fi.ed assets and the sale of goods and services/ uring
the course of our audit% &e have not o1served any ma7or &ea8ness in
such internal control system/
!vi$ In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section (+) of the #ompanies Act% )234% to
the 1est of our 8no&ledge and 1elief and according to the information
and e.planations given to us9
!a$ The particulars of contracts or arrangements referred to in Section
(+) that needed to 1e entered in the Register maintained under the said
Section have 1een so entered/
!1$ Where each of such transaction !e.cluding loans reported under
paragraph !iv$ a1ove$ is in e.cess of Rs/ 3 la8hs in respect of any
party% having regard to our comments in paragraph !v$ a1ove% the
transactions have 1een made at prices &hich are prima facie reasona1le
having regard to the prevailing mar8et prices at the relevant time%
other than certain purchases &hich are of a special nature for &hich
compara1le guotations are not availa1le and in respect of &hich &e are%
therefore% una1le to comment if the transactions have 1een carried out
at prices having regard to the prevailing mar8et prices at the relevant
time/
!vii$ In our opinion and according to the information and e.planations
given to us% the #ompany has complied &ith the provisions of Sections
3@A% 3@AA or any other relevant provisions of the #ompanies Act% )234
and the #ompanies !Acceptance of eposits$ Rules% )2<3 &ith regard to
the deposits accepted from the pu1lic/ According to the information and
e.planations given to us% no order has 1een passed 1y the #ompany La&
'oard or the Aational #ompany La& Tri1unal or the Reserve 'an8 of India
or any #ourt or any other Tri1unal/
!viii$ In our opinion% the #ompany has an adeguate internal audit
system commensurate &ith the si?e and the nature of its 1usiness/
!i.$ We have 1roadly revie&ed the cost records maintained 1y the
#ompany pursuant to the #ompanies !#ost Accounting Records$ Rules% *+))
prescri1ed 1y the #entral 5overnment under Section *+2 !)$ !d$ of the
#ompanies Act% )234 and are of the opinion that prima facie% the
prescri1ed cost records have 1een made and maintained/ We have%
ho&ever% not made a detailed e.amination of the cost records &ith a
vie& to determine &hether they are accurate or complete/
!.$ According to the information and e.planations given to us in
respect of statutory dues9
!a$ The #ompany has generally 1een regular in depositing undisputed
statutory dues% including -rovident Fund% Investor Education and
-rotection Fund% Employees00State Insurance% Income>ta.% Sales Ta.%
Wealth Ta.% Service Ta.% #ustoms uty% E.cise uty% #ess and other
material statutory dues applica1le to it &ith the appropriate
authorities/ We are informed 1y the #ompany that the Employees00States
Insurance Act% )2,@ is applica1le only to certain locations of the
#ompany/ With regard to the contri1ution under the Employees00 eposit
Lin8ed Insurance Scheme% )2<4 !the Scheme$% &e are informed that the
#ompany has its o&n Life #over Scheme% and conseguently% an application
has 1een made see8ing an e.tension of e.emption from contri1ution to
the Scheme% &hich is a&aited/
!1$ There &ere no undisputed amounts paya1le in respect of -rovident
Fund% Investor Education and -rotection Fund% Employees00State
Insurance% Income>ta.% Sales Ta.% Wealth Ta.% Service Ta.% #ustoms
uty% E.cise uty% #ess and other material statutory dues in arrears as
at March ()%*+), for a period of more than si. months from the date
they 1ecame paya1le/
!.i$ The #ompany does not have any accumulated losses at the end of the
financial year and the #ompany has not incurred cash losses during the
financial year covered 1y our audit and in the immediately preceding
financial year/
!.ii$ In our opinion and according to the information and e.planations
given to us% the #ompany has not defaulted in the repayment of dues to
financial institutions% 1an8s and de1enture holders/
!.iii$ 'ased on our e.amination of the records and the information and
e.planations given to us% the #ompany has not granted any loans and
advances on the 1asis of security 1y &ay of pledge of shares%
de1entures and other securities/
!.iv$ According to the information and e.planations given to us% the
#ompany has not given guarantees for loans ta8en 1y others from 1an8s
or financial institutions/
!.v$ In our opinion and according to the information and e.planations
given to us% the term loans have 1een applied 1y the #ompany during the
year for the purposes for &hich they &ere o1tained/
!.vi$ In our opinion and according to the information and e.planations
given to us% and on an overall e.amination of the 'alance Sheet of the
#ompany% &e report that funds raised on short>term 1asis aggregatingRs/
))%3*)/*+ crores have 1een used for long>term investments/ Further the
#ompany has e.plained that steps are 1eing ta8en to augment long term
funds/
!.vii$ uring the year the #ompany has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section (+) of the #ompanies Act% )234/
!.viii$ uring the period covered 1y our audit report% the #ompany has
not issued any secured de1entures/
!.i.$ According to the information and e.planations given to us% during
the year covered 1y our audit report% the #ompany has not raised any
money 1y pu1lic issue/
!..$ To the 1est of our 8no&ledge and according to the information and
e.planations given to us% no fraud 1y the #ompany and no material fraud
on the #ompany has 1een noticed or reported during the year/
For ELOITTE =ASBIAS C SELLS LL-
#hartered Accountants
!Firm Registration Ao/ ))<(44W6W>)+++)@$
'/ -/ S=ROFF
-artner
!Mem1ership Ao/ (,(@*$
MDM'AI%May *2%*+),