68th Annual Report 2012-13
CONTENTS FINANCIAL HIGHLIGHTS
FINANCIAL STATEMENTS
36 Financial Performance
Standalone Financial Statements 116 Independent Auditors’ Report
40 Summarised Balance Sheet and Statement of Profit and Loss Standalone 42 Summarised Balance Sheet and Statement of Profit and Loss Consolidated 44 Fund Flow Statement
CORPORATE OVERVIEW 02 Corporate Information 03 Mission, Vision and Values 04 Chairman’s Statement
120 Balance Sheet 121 Profit and Loss Statement 122 Cash Flow Statement 124 Notes to Accounts Consolidated Financial Statements 160 Independent Auditors’ Report
STATUTORY REPORTS
162 Balance Sheet
45 Notice
163 Profit and Loss Statement
52 Directors’ Report
164 Cash Flow Statement
66 Management Discussion and Analysis
166 Notes to Accounts
98 Report on Corporate Governance
Subsidiary Companies 197 Financial Highlights
115 Secretarial Audit Report
200 Listed Securities
08 Board of Directors 12 Delivering Experiences 14 Key Performance Indicators 16 Products and Brands 18 Global Presence 20 Milestones 22 Driving Accountability 24 Focusing on Customers & Products 26 Emphasising Excellence 28 Delivering with Speed 30 Sustainability 34 Awards and Achievements
ANNUAL GENERAL MEETING Date: Wednesday, August 21, 2013 Time: 3.00 p.m. Venue: Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai 400 020
201 Financial Statistics
Attendance Slip & Proxy Form
ANTICIPATING NEEDS. DELIVERING EXCITEMENT. At Tata Motors, we believe that our strengths stem from an organisationwide culture which rests on four pillars – Accountability, Customer & Product Focus, Excellence and Speed (ACES).
Our renewed commitment to these pillars drives us to achieve our mission of anticipating and providing the best vehicles and experiences to excite our customers. Not just in India, but across the world. Our products span segments, customers and geographies. Our strengths in engineering, a deep-rooted understanding of customers and markets help us deliver best-in-class products and superior driving experiences. Our customers are at the heart of all we do. We are gearing up and igniting our passion to offer products that meet the
mobility needs of our customers. We are engaging with them at our dealerships and adopting processes to ensure that industry-leading practices form a key part of our service proposition. As we move ahead, we will continue to anticipate the needs of our customers and remain committed to deliver excitement.
68th ANNUAL REPORT 2012-13
CORPORATE INFORMATION Mr Ratan N Tata Chairman Emeritus
BOARD OF DIRECTORS
REGISTERED OFFICE
Mr Cyrus P Mistry
Bombay House 24, Homi Mody Street, Mumbai 400 001 Tel: +91-22-6665 8282 Fax: +91-22-6665 7799 Email: inv_rel@tatamotors.com Website: www.tatamotors.com
Non Executive Director and Chairman
Mr Ravi Kant Non Executive Director and Vice Chairman
Mr Nusli N Wadia
Non Executive, Independent Director
Mr Sam M Palia
Non Executive, Independent Director (retired on April 25, 2013)
WORKS
Dr Raghunath A Mashelkar
Jamshedpur Pune Lucknow Pantnagar Sanand Dharwad
Non Executive, Independent Director
Mr Subodh Bhargava
Non Executive, Independent Director
Mr Nasser Munjee
Non Executive, Independent Director
Mr Vinesh K Jairath
Non Executive, Independent Director
SHARE REGISTRARS
Ms Falguni S Nayar
Non Executive, Independent Director (appointed on May 29, 2013)
TSR Darashaw Private Limited 6-10, Haji Moosa Patrawala Industrial Estate 20, Dr. E. Moses Road, Mahalaxmi, Mumbai 400 011 Tel: +91-22-6656 8484 Fax: +91-22-6656 8494 Email: csg-unit@tsrdarashaw.com
Dr Ralf Speth
Non Executive Director
Mr Karl J Slym
Managing Director
Mr Ravindra Pisharody
Executive Director (Commercial Vehicles)
AUDITORS
Mr Satish B Borwankar
Executive Director (Quality)
Deloitte Haskins & Sells (Registration No. 117366W)
BANKERS
EXECUTIVE COMMITTEE Mr Karl Slym
Managing Director
Mr Ravindra Pisharody
Executive Director and Head, Commercial Vehicle Business Unit
Mr Satish B Borwankar
Executive Director and Head, Quality
Mr C Ramakrishnan
President and Chief Financial Officer
Dr Tim Leverton
President and Head, Engineering Research Centre
Mr Ranjit Yadav
President and Head, Passenger Vehicles Business Unit
Mr Prabir Jha
Sr Vice President and Chief Human Resources Officer
Mr Ankush Arora
Sr Vice President, Commercial Passenger Vehicle Business Unit
Mr Venkatram Mamillapalle Sr Vice President and Head, Purchasing & Supply Chain
Allahabad Bank Andhra Bank Bank of America Bank of Baroda Bank of India Bank of Maharashtra Central Bank of India Citibank N.A. Corporation Bank Deutsche Bank Federal Bank HDFC Bank
HSBC ICICI Bank IDBI Bank Indian Bank ING Vysya Bank Karur Vysya Bank Punjab National Bank Standard Chartered Bank State Bank of India State Bank of Mysore State Bank of Patiala Union Bank of India United Bank of India
COMPANY SECRETARY
CORPORATE IDENTITY NUMBER (CIN)
Mr H K Sethna
L28920MH1945PLC004520
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68th ANNUAL REPORT 2012-13
SUSTAINABILITY AROGYA
Our community development programme evolved to fulfill the most pressing needs of the community that are regularly assessed in consultation with various internal and external stakeholder groups. Our Community Development Strategy is periodically reviewed keeping pace with changing times.
COMMUNITY DEVELOPMENT
We provide curative and preventive medical facilities in communities with special focus on maternal and child health care. Our medical clinics not only provide necessary medicine but they also carry various social messages. Moreover, in the premises of this hospital, we have established a state-of-art 16 bedded Malnutrition Treatment Centre (MTC), in partnership with UNICEF Jharkhand. Since, inception this centre has saved lives of over 400 children. AMRUTDHARA
AROGYA - Medical Camps in villages - Malnutrition treatment and construction of low-cost toilets - Safe Drinking Water
VIDYADHANAM - Scholarship programme - Extra-coaching classes for weak students - Infrastructure development We realise the value of inclusive growth and position our strategy to compliment Company’s business objectives. We have adopted Tata Group Affirmative Action (AA) Policy towards inclusive growth of marginalised sections of society, the Scheduled Castes (SC) and Scheduled Tribes (ST). Every year, we participate in TAAP (Tata Affirmative Action Program) Assessment, developed on the lines of TBEM (Tata Business Excellence Model). Since inception, our AA Program has been top ranked and this year we also received TAAP Jury Award.
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KAUSHALYA - Training in Agriculture and Allied Activities - Driver Training Program - ITI adoption programme - training of youth in automotive trades
Availability of clean, potable drinking water becomes an issue particularly during summer season and it adversely affects health of vulnerable sections – women, children and elderly. To bridge this gap, in 2010-11 we instituted Safe Drinking Water project under aegis of SMDF (Sumant Moolgaonkar Development Foundation). Till March 2013, we have provided drinking water solutions in 68 villages. VIDYADHANAM Our education programme envisions bringing a meaningful and positive impact on the lives of children residing in rural areas through effective, case based holistic approach. As a result of these focussed initiatives, students associated with our education initiative continuously posted more than 90% result in senior secondary examination. KAUSHALYA
VASUNDHARA - Sapling plantation - Soil and Water Conservation - Awareness Building on environmental issues
We have partnered with 135 ITIs across 19 states and focussed initiatives have been undertaken in these ITIs in terms of upgrading the in-house training facilities, improving the quality of training by Training the Trainer etc.
CORPORATE OVERVIEW
FINANCIAL HIGHLIGHTS
STATUTORY REPORTS
FINANCIAL STATEMENTS
Sustainability (30-33)
PROFESSIONAL DRIVER TRAINING PROGRAMME Our Professional Driver Training Programme is aligned with the business needs of the organisation. We recognise that drivers are the primary customers of our commercial vehicles and to sustain business growth, more drivers will be required in upcoming years. During the year, we have trained 564 novice drivers through seven centres spread across the country. The initiative has developed strong governmental linkages particularly for the training fees subsidy of the candidates. VASUNDHARA In the present era of ever-increasing energy consumption, the importance of fuel such as biogas and biomass based power generation has greatly increased. At Sanand, as pilot project, we have installed 5 biogas units as pilot in 2 villages of Manipur and Melasana. At Pantnagar, we mentored community clubs to protect environment. Through these community clubs, we sensitised villagers about climate change and green environment. In 2012-13, we have planted 230,000 trees in partnership with NGOs, Government Line departments and communities.
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68th ANNUAL REPORT 2012-13
SUSTAINABILITY
INTERNATIONAL CSR INITIATIVES JAGUAR LAND ROVER In order to help the local community and strengthen JLR’s reputation as a responsible business, JLR encourages its employees to volunteer their time, as an individual or as team, for education, youth development and environment. Volunteering projects offer personal development opportunities including the development of skills and competencies including leadership, team working, project management and communication. In 2012, JLR donated over 17,000 hours of employee time on community projects and volunteering.
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Inspiring Tomorrow’s Engineers School Education Programme Jaguar Land Rover’s ‘Inspiring Tomorrow’s Engineers’ programme is working closely with schools across UK to promote learning and engagement with STEM subjects and to help create the next generation of engineers and technologists. In 2012, more than 22,000 school children and 2,000 teachers visited JLR Education Business Partnership Centres. A further 300 young people participated in work experience placements National Schools Challenge Projects As part of its programme to support the Government’s STEM Agenda, JLR
has worked in conjunction with other automotive, engineering and academic organisations to develop three national challenge programmes for schools. These educational challenges help to develop knowledge, skills and understanding of STEM subjects and promote engineering careers by providing pupils with handson projects that enable them to explore different aspects of the automotive industry in a stimulating and exciting way. In 2012, more than 200,000 young people directly participated in ITE. TATA DAEWOO COMMERCIAL VEHICLE COMPANY Tata Daewoo Commercial Vehicle Company (TDCV) has donated KRW 46.5 Million towards Scholarship, Delivery
CORPORATE OVERVIEW
FINANCIAL HIGHLIGHTS
STATUTORY REPORTS
FINANCIAL STATEMENTS
Sustainability (30-33)
of coal briquette, donation of goods. The Company also conducted Training Program for Teachers in Jeobuk and adopted Gunsan Youngkwang Girls’ Middle School under Company – School alliance program. TDCV Employees volunteered 2,424 hours towards helping in children and senior citizen shelters, building houses and blood donation. TDCV also won Nanum-nation grand prize Award with the Minister of Health and Welfare and Award a gold prize with the Republic of Korea National Red Cross. TATA MOTORS SOUTH AFRICA Tata Motors South Africa (TMSA) partnered with two organisations for reaching the poor community in Pretoria South Africa. TMSA donated wood to partner organisations. Earlier the packing wood generated out of the vehicle kits
were sold at Rand 400 per tonne to the scrap buyers. Now this wood goes to underprivileged people living in low-cost housing areas. GHANA As a part of Joy of Giving Week, Tata Motors International Business Team Ghana and their family members visited country side orphanage in a remote location at Bawjaise, 2 hour drive from Accra. The orphanage was started in 1981 by Madam Emma Boafo with mission to provide parental care and training for the needy children to prepare them for the challenges of life with confidence. The orphanage currently supports more than 150 children with newborns and infants up to age of twelve. The team organised lunch and donated rice, books, notebooks and stationery to children.
Note: Tata Motors has published a detailed Business Responsibility Report. This is available for download on our website www.tatamotors.com 33
Jaguar Land Rover Halewood plant
Range Rover Evoque manufacturing plant
10,000th Ace roll-out from Dharwad plant (January 30, 2013)
1st Vehicle roll-out from Dharwad plant (March 15, 2012)
Bombay House 24 Homi Mody Street Mumbai 400 001