Tata Motors Annual Report

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Tata Motors Annual Report 68th Annual Report 2012-13 WorldReginfo - 82692955-67e3-4e65-9aba-f325bd0e9d58 CONTENTS FINANCIAL HIGHLIGHTS FINANCIAL STATEMENTS 36 Financial Performance Standalone Financial Statements 40 Summarised Balance Sheet 116 Independent Auditors’ Report and Statement of Profit and 120 Balance Sheet Loss Standalone 121 Profit and Loss Statement 42 Summarised Balance Sheet and Statement of Profit and 122 Cash Flow Statement Loss Consolidated 124 Notes to Accounts 44 Fund Flow Statement 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 166 Notes to Accounts Analysis CORPORATE OVERVIEW Subsidiary Companies 98 Report on Corporate 02 Corporate Information Governance 197 Financial Highlights 03 Mission, Vision and Values 115 Secretarial Audit Report 200 Listed Securities 04 Chairman’s Statement 201 Financial Statistics 08 Board of Directors 12 Delivering Experiences Attendance Slip & Proxy Form 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 WorldReginfo - 82692955-67e3-4e65-9aba-f325bd0e9d58 ANTICIPATING NEEDS. DELIVERING EXCITEMENT. At Tata Motors, we believe that our Our renewed commitment to these mobility needs of our customers. We are strengths stem from an organisation- pillars drives us to achieve our mission engaging with them at our dealerships wide culture which rests on four of anticipating and providing the best and adopting processes to ensure that pillars – Accountability, Customer & vehicles and experiences to excite our industry-leading practices form a key part Product Focus, Excellence and customers. Not just in India, but across of our service proposition. Speed (ACES). the world. Our products span segments, As we move ahead, we will continue to customers and geographies. Our anticipate the needs of our customers strengths in engineering, a deep-rooted and remain committed to deliver understanding of customers and markets excitement. 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 WorldReginfo - 82692955-67e3-4e65-9aba-f325bd0e9d58 68th ANNUAL REPORT 2012-13 CORPORATE INFORMATION Mr Ratan N Tata Chairman Emeritus BOARD OF DIRECTORS REGISTERED OFFICE Mr Cyrus P Mistry Bombay House Non Executive Director and Chairman 24, Homi Mody Street, Mumbai 400 001 Mr Ravi Kant Tel: +91-22-6665 8282 Non Executive Director and Vice Chairman Fax: +91-22-6665 7799 Mr Nusli N Wadia Email: [email protected] Non Executive, Independent Director Website: www.tatamotors.com Mr Sam M Palia Non Executive, Independent Director WORKS (retired on April 25, 2013) Dr Raghunath A Mashelkar Jamshedpur Non Executive, Independent Director Pune Mr Subodh Bhargava Lucknow Non Executive, Independent Director Pantnagar Mr Nasser Munjee Sanand Non Executive, Independent Director Dharwad Mr Vinesh K Jairath Non Executive, Independent Director SHARE REGISTRARS Ms Falguni S Nayar Non Executive, Independent Director TSR Darashaw Private Limited (appointed on May 29, 2013) 6-10, Haji Moosa Patrawala Industrial Estate Dr Ralf Speth 20, Dr. E. Moses Road, Mahalaxmi, Mumbai 400 011 Non Executive Director Tel: +91-22-6656 8484 Mr Karl J Slym Fax: +91-22-6656 8494 Managing Director Email: [email protected] Mr Ravindra Pisharody Executive Director (Commercial Vehicles) Mr Satish B Borwankar AUDITORS Executive Director (Quality) Deloitte Haskins & Sells (Registration No. 117366W) BANKERS EXECUTIVE COMMITTEE Allahabad Bank HSBC Mr Karl Slym Mr Ranjit Yadav Andhra Bank ICICI Bank Managing Director President and Head, Bank of America IDBI Bank Mr Ravindra Pisharody Passenger Vehicles Business Unit Bank of Baroda Indian Bank Executive Director and Head, Mr Prabir Jha Commercial Vehicle Business Unit Sr Vice President and Bank of India ING Vysya Bank Chief Human Resources Officer Bank of Maharashtra Karur Vysya Bank Mr Satish B Borwankar Executive Director and Head, Quality Mr Ankush Arora Central Bank of India Punjab National Bank Sr Vice President, Commercial - Citibank N.A. Standard Chartered Bank Mr C Ramakrishnan Passenger Vehicle Business Unit President and Chief Financial Officer Corporation Bank State Bank of India Mr Venkatram Mamillapalle Deutsche Bank State Bank of Mysore Dr Tim Leverton Sr Vice President and Head, President and Head, Federal Bank State Bank of Patiala Purchasing & Supply Chain Engineering Research Centre HDFC Bank Union Bank of India United Bank of India COMPANY SECRETARY CORPORATE IDENTITY NUMBER (CIN) Mr H K Sethna L28920MH1945PLC004520 2 3 WorldReginfo - 82692955-67e3-4e65-9aba-f325bd0e9d58 CORPORATE OVERVIEW FINANCIAL HIGHLIGHTS STATUTORY REPORTS FINANCIAL STATEMENTS Mission, Vision and Values (3) MISSION, VISION AND VALUES 2 3 WorldReginfo - 82692955-67e3-4e65-9aba-f325bd0e9d58 68th ANNUAL REPORT 2012-13 CHAIRMAN’S MESSAGE Tata Motors is privileged to have a strong parent brand, a rich commercial vehicle pedigree, international design centres of global standards, and last but not the least, committed employees and a strong dealer and vendor base. Dear Shareholder, The world continues to be in the midst of a very CYRUS P MISTRY challenging economic environment. While the global CHAIRMAN economic meltdown in 2008 had relatively limited impact on India and other emerging markets, we are currently buffeted by headwinds caused by global as well as domestic circumstances. The impact of the slowdown has been felt across the board in India, with all sectors of the economy being affected. 4 5 WorldReginfo - 82692955-67e3-4e65-9aba-f325bd0e9d58 CORPORATE OVERVIEW FINANCIAL HIGHLIGHTS STATUTORY REPORTS FINANCIAL STATEMENTS Chairman’s Message (4-7) Amongst the few bright spots in the performance of the the majority of Chinese car exports going to emerging global automobile industry has been the rebound of the markets in Africa, the Middle East and South America. US auto industry. Vehicle sales have once been rising in Chinese exports are expected to double in volumes by the US, after the nearly 22 percent collapse in volumes 2016. that followed the 2008 economic crash. Auto factories are reportedly running at 95 percent capacity in the US, and INDIAN AUTO INDUSTRY AND TATA MOTORS several of the large US manufacturers have now become The year saw passenger vehicle sales in India grow by a profitable. mere 0.9 percent, while overall commercial vehicles sales registered a growth of 1.7 percent. Diesel price hikes Europe, however, continues to see stagnant demand, resulted in lower demand for diesel vehicles, thereby with a number of auto makers reporting large losses. dampening growth in both the personal and commercial Demand for new vehicles is at a record low in many vehicle segments. Small commercial vehicles and pick-ups nations. With domestic demand having dropped back witnessed continued strong demand, and small SUVs and to levels last seen more than a generation ago, this has luxury brands saw significant increase in interest. left European manufacturers dependent on exports to survive. And in fact, premium vehicle manufacturers have The financial year 2013 has been a challenging one for been less affected by the European sales crisis; although Tata Motors. Nonetheless, despite difficult economic their sales within the European Union have declined, they conditions and increasing competition, the Company are benefitting from the pickup in demand in markets retained its market leadership in commercial vehicles, on like China and the US. With German manufacturers the back of new offerings and introduction of innovative outsourcing capacity to Asia, so as to be closer to local technologies. Its highly successful and reliable Ace and markets, in 2012 several of the German premium vehicle Magic vehicles crossed the sales mark of one million units, manufacturers sold more cars worldwide than ever before. achieved in seven years since these products were first Great Britain was one of the few countries in this region to introduced in the market. The sales performance of the register an increase in car sales. Company’s passenger vehicles, however, was significantly lower as compared to expectation; rapid changes in In China as well, luxury manufacturers are doing well, customer preferences along with the de-regulation of thanks to booming demand. China has advanced as the diesel pricing both took their toll. largest vehicle market in the world and will continue to grow, even though the rate of growth might slow. Amidst As we look ahead, we see a year of continuing challenges slower growth in China, Chinese vehicle manufacturers – but at the same time, full of opportunities. Tata Motors shipped more than one million cars to other markets, with is privileged to have a strong parent brand, a rich 4 5 WorldReginfo - 82692955-67e3-4e65-9aba-f325bd0e9d58 68th ANNUAL REPORT 2012-13 CHAIRMAN’S MESSAGE commercial vehicle pedigree, international design centres centricity and innovation, so that the Company’s products of global standards, and last but not the least, committed and services consistently
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