MIRA
INFORM REPORT
|
Report Date : |
11.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
TATA MOTORS LIMITED |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
01.09.1945 |
|
|
|
|
Com. Reg. No.: |
11-4520 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L28920MH1945PLC004520 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00054F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACT2727Q |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacture and Seller of Commercial Vehicles, Passenger Vehicles, Construction Equipments and Machine Tools. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 270000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established, reputed and respectable company of the country’s largest industrialists viz., The Tata Group. Available information indicates high financial responsibility of the company and its management. Fundamentals are strong and healthy. Business is active. It’s payments are always correct and as per commitments. The company can be considered for any normal business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91–22–66658282 / 66658282 |
|
Fax No.: |
91–22–66657799 / 66657799 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
v
Pimpri, Pune – 411 018, v
Jamshedpur Towns Post Office, v
Chinchwad, Pune – 411 033, v
Chinhat – v KIADB Block – 2, Belur Industrial Area, Dharwad – 580 007, Karnataka |
|
|
|
|
Branches : |
v
503, Barton Centre, 5th Floor, 84, Tel:
91-80-25320321, Fax : 91-80-25580019 e-mail: tsrlbang@tatashare.com v
Bungalow No.1,"E"Road, Northern Town,
Bistupur, Jamshedpur-831 001 Tel: 91-657-2426616, Fax: 91-657 -
2426937 Email : tsrljsr@tatashare.com v
Tata Centre, 1st Floor, 43, Tel: 91-33-22883087, Fax : 91-33 -
22883062 e-mail : tsrlcal@tatashare.com v
Plot No.2/42, Sant Vihar, Tel: 91-11 -23271805, Fax : 91-11 -
23271802 e-mail: tsrldel@tatashare.com |
DIRECTORS
|
Name : |
Mr. Ratan N. Tata |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. N. A. Soonawala |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. J. Irani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. K. Setna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. R. Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. Gopalakrishnan |
|
Designation : |
Director |
|
Date of Birth/Age : |
25/12/1945 |
|
Date of Appointment : |
22/12/1998 |
|
Qualification : |
B. Technical in
Electronics from IIT Kharagpur, Advanced Management Programme, |
|
Other Directorships: - |
·
Birla-Tata
AT & T Limited ·
Castrol
India Limited ·
ICI
Limited ·
Rallis
India Limited ·
Sheba
Properties Limited ·
Tata
AutoComp Systems Limited ·
Tata
Chemicals Limited ·
Tata
Honeywell Limited ·
Tata
Internet Services Limited ·
Tata
Sons Limited ·
Tata
Technologies Limited ·
Tata
Teleservices Limited ·
The
Tata Power Company Limited |
|
|
|
|
Name : |
Mr. N. N. Wadia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Helmut Petri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. A. Naik |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. Praveen P. Kadle |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. V. Sumantran |
|
Designation : |
Executive
Director |
|
Date of Birth: |
27/09/1958 |
|
Date of Appointment: |
12/11/2001 |
|
Qualification: |
B. Technical in
Aerospace Engineering from IIT, Chennai, Ph. D in Aerospace Engineering from
Virginia Technical (USA) and a Master’s degree of management of Technology
from Renssalaer Polytechnic Institute |
|
|
|
|
Name : |
Mr. P. K. M. Fietzek |
|
Designation : |
Alternate
Director to Mr. Helmut Petri |
|
|
|
|
Name : |
Mr. Sam M Palia |
|
Designation : |
Additional
Director |
|
|
|
|
OTHER PERSONNEL: |
|
|
Name : |
Mr. H. K. Sethna |
|
Designation : |
Company Secretary |
KEY EXECUTIVES
|
Name : |
Mr. A P Arya |
|
Designation : |
President ( |
|
|
|
|
Name : |
Mr. P M Telang |
|
Designation : |
President (Pune
& Dharwad Works) |
|
|
|
|
Name : |
Mr. Rajiv Dube |
|
Designation : |
Sr. Vice
President (Commercial) PCBU |
|
|
|
|
Name : |
Mr. C
Ramakrishnan |
|
Designation : |
Vice President
(Chairman's Office) |
|
|
|
|
Name : |
Mr. Shyam Mani |
|
Designation : |
Vice President
(Sales & Marketing) CVBU |
|
|
|
|
Name : |
Mr. RT Singh |
|
Designation : |
Vice President
(Manufacturing) |
|
|
|
|
Name : |
Mr. K C Girotra |
|
Designation : |
Vice President ( |
|
|
|
|
Name : |
Mr. R |
|
Designation : |
Vice President
(Finance) |
|
|
|
|
Name : |
Mr. R R Akarte |
|
Designation : |
Vice President
(Manufacturing) |
|
|
|
|
Name : |
Mr. M V Rajarao |
|
Designation : |
Vice President (Manufacturing) |
SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter Group2 |
|
|
|
Indian |
|
|
|
Bodies Corporate |
128462429 |
39.15 |
|
Trust |
354976 |
0.11 |
|
Public Shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds / UTI |
11275387 |
3.44 |
|
Financial Institutions / Banks |
1409240 |
0.43 |
|
Central Government / State Government(s) |
407181 |
0.12 |
|
Insurance Companies |
42056141 |
12.82 |
|
Foreign Institutional Investors |
69417351 |
21.16 |
|
Foreign Institutional Investors - DR |
7892 |
0.00 |
|
Foreign Bodies - DR |
50000 |
0.01 |
|
Non-Institutions |
|
|
|
Bodies Corporate |
3955541 |
1.21 |
|
Individuals |
|
|
|
Individuals - i. Individual shareholders holding nominal share
capital upto Rs.0.100 Million |
38167170 |
11.63 |
|
ii. Individual shareholders holding nominal share capital
in excess of Rs. 0.100 Million |
2224596 |
0.68 |
|
Directors & their relatives |
122659 |
0.04 |
|
Non Resident Indians |
2422355 |
0.74 |
|
Clearing Member |
182562 |
0.05 |
|
Trusts |
95443 |
0.03 |
|
Overseas Corporate Bodies |
98 |
0.00 |
|
Foreign Corporate Bodies (including FDI) |
27493759 |
8.38 |
|
Total |
328104780 |
100 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and Seller of Commercial Vehicles, Passenger Vehicles, Construction Equipments and Machine Tools. |
||||
|
|
|
||||
|
Products : |
v Heavy and medium commercial vehicles v Cars v Light commercial vehicles |
GENERAL INFORMATION
|
Customers : |
v AKI Industries Private Limited v Abhaya Precision Industries Private Limited v Adarsh Engineering Works v Auto Knight Private Limited v B. B. Electrotechnic v Bharat Engineering Works v Bhalotia Engineering Works Private Limited v Calcutta Fan Works Limited v Castlewood Brush Industries Private Limited v Cotmac Private Limited v Electro Alloys Corporation v Electro Ferro Alloys Private Limited v Evercoat Technical Service India Private Limited v ARM Controls & Systems Private Limited v Auto Turn Industries v Best Cast IT Limited |
|
|
|
|
No. of Employees : |
22349 |
|
|
|
|
Bankers : |
v
Bank of v
State Bank of v
Central Bank of v
Bank of v
Bank of v Standard Chartered Grindlays Bank Limited v
Bank of v The Hongkong & Shanghai Banking Corporation Limited v
Union Bank of v Citibank N.A. v
Bank of v Deutsche Bank v
Bank of v Corporation Bank v HDFC Bank Limited |
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins & Sells Chartered Accountant |
|
|
|
|
Memberships : |
1. Confederation of Indiaan Industry |
|
|
|
|
|
|
|
Associates : |
v Concorde Motors Limited v Float Glass India Limited v Haldia Petrochemicals Limited v Tata Auto Computer Systems Limited v Tata Cummins Limited v Tata Finance Limited v Tata Holset Limited v Tata International Limited v Tata Precision Industries Pte. Limited v Tata Sons Limited v Nita Company Limited v The Tata Iron & Steel Company Limited v Tata Project Limited v Tata Export Limited v Tata Electric Companies v TRF Limited v Tata Consultancy Services and many other member companies |
|
|
|
|
Subsidiaries : |
v Telco Construction Equipment Company Limited v
Tata Technologies ( v Sheba Properties Limited v
Minicar ( v HV Axles Limited v HV Transmissions Limited v
Tata Technologies, v Telco Dadajee Dhackjee Limited v TAL Manufacturing Solutions Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40,00,00,000 |
Equity Shares |
Rs. 10 each |
Rs. 4000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
382870000 |
Equity Shares |
Rs. 10 each |
Rs. 3828.700 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3854.100 |
3828.700 |
3617.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
64843.400 |
51542.000 |
37496.00 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
68697.500 |
55370.700 |
41113.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
20220.400 |
8227.600 |
4898.100 |
|
|
2] Unsecured Loans |
19871.000 |
21140.800 |
20056.100 |
|
|
TOTAL BORROWING |
40091.400 |
29368.400 |
24954.200 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
5652.800 |
|
|
|
|
|
|
|
|
TOTAL |
108788.900 |
84739.100 |
71720.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
38812.600 |
35700.400 |
31576.700 |
|
|
Capital work-in-progress |
25133.200 |
9511.900 |
5388.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
24770.000 |
20151.500 |
29120.600 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
25009.500 |
20122.400 |
61.200 |
|
|
Sundry Debtors |
7821.800 |
7157.800 |
16013.600 |
|
|
Cash & Bank Balances |
8267.600 |
11194.300 |
8113.200 |
|
|
Other Current Assets |
0.000 |
0.000 |
20050.400 |
|
|
Loans & Advances |
62085.300 |
59646.100 |
27223.500 |
|
Total
Current Assets |
103184.200 |
98120.600 |
71461.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
69568.800 |
66736.100 |
54747.700 |
|
|
Provisions |
13643.200 |
12150.400 |
11260.600 |
|
Total
Current Liabilities |
83212.000 |
78886.500 |
66008.300 |
|
|
Net Current Assets |
19972.200 |
19234.100 |
5453.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
100.900 |
141.200 |
181.600 |
|
|
|
|
|
|
|
|
TOTAL |
108788.900 |
84739.100 |
71720.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
||
|
Sales Turnover |
314869.700
|
236734.300
|
201520.300
|
||
|
Other Income |
6983.500
|
6939.200
|
5602.900
|
||
|
Stock Adjustments |
3496.800
|
2569.100
|
1440.000
|
||
|
Total Income |
325350.000 |
246242.600 |
208563.200 |
||
|
|
|
|
|
||
|
Profit/(Loss) Before Tax |
25731.800
|
20533.800
|
16519.000
|
||
|
Provision for Taxation |
6597.200
|
5245.000
|
4149.500
|
||
|
Profit/(Loss) After Tax |
19134.600
|
15288.800
|
12369.500
|
||
|
|
|
|
|
||
|
Export Value |
NA |
NA |
14978.500 |
||
|
|
|
|
|
|
|
|
Import Value |
|
NA |
6269.800 |
2728.100 |
|
|
|
|
|
|
||
|
Expenditures : |
|
|
|
||
|
|
Raw Materials |
193749.300
|
142638.600
|
119294.800
|
|
|
|
Excise Duty |
44254.400
|
33801.300
|
30634.400
|
|
|
|
Power & Fuel Cost |
3274.100
|
2585.100
|
2378.100
|
|
|
|
Other Manufacturing Expenses |
14860.900
|
11419.200
|
10171.100
|
|
|
|
Employee Cost |
13612.000
|
11414.800
|
10379.300
|
|
|
|
Selling and Administration
Expenses |
13258.200
|
9857.400
|
7950.300
|
|
|
|
Miscellaneous Expenses |
12831.800
|
8936.600
|
6737.800
|
|
|
|
Interest & Financial Charges
|
3685.100
|
2934.900
|
2178.100
|
|
|
|
Depreciation |
5862.900
|
5209.400
|
4501.600
|
|
|
Total Expenditure |
305388.700 |
228797.300 |
194225.500 |
||
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.56 |
0.56 |
0.49 |
|
Long Term Debt-Equity Ratio |
0.36 |
0.49 |
0.47 |
|
Current Ratio |
1.07 |
1.08 |
0.87 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.77 |
3.25 |
3.20 |
|
Inventory |
13.95 |
13.10 |
14.66 |
|
Debtors |
42.02 |
31.27 |
28.51 |
|
Interest Cover Ratio |
7.98 |
8.00 |
8.58 |
|
Operating Profit Margin(%) |
11.20 |
12.11 |
11.51 |
|
Profit Before Interest And Tax Margin(%) |
9.34 |
9.91 |
9.28 |
|
Cash Profit Margin(%) |
7.94 |
8.66 |
8.37 |
|
Adjusted Net Profit Margin(%) |
6.08 |
6.46 |
6.14 |
|
Return On Capital Employed(%) |
30.52 |
31.25 |
32.76 |
|
Return On Net Worth(%) |
30.98 |
31.36 |
32.12 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.733.00/- |
|
Low |
Rs.695.00/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Tata Motors Limited (Formerly known as Tata Engineering and
Locomotive Company Limited), Controlled by the House of Tatas, is the fifth-largest
manufacturer of medium and heavy commercial vehicle and the second largest
medium and heavy bus manufacturer in the world. The commercial diesel vehicles,
which were called Tata Mercedes Benz, are now sold under the name Tata after
the expiry of the collaboration agreement with
Major milestones:
1923 Peninsular Locomotive Company started its operations in Tatanagar,
1927 East India Railway took over Peninsular Locomotive Company. The
manufacture of Passenger Carriage Under frames for the Indian Railway
commenced. It contributed to the war effort of the Allied forces during the
World War II when it was called upon to manufacture armored cars for the North
African Campaign (utilizing Tisco Steel).
1945 Tata Sons purchased the Tatanagar shops from the Government of India on
1st June 1945 for Rs. 2.539 Millions with the aim of immediately manufacturing
steam locomotive boilers. Later it planned to manufacture complete locomotives
and other engineering products.
1946 Tata Engineering was undertaken manufacture of 5000 'KC' broad gauge open
wagons for the Indian Railway. The Managing Agency Tata Sons was transferred to
Tata Industries on 1st July 1946. The Managing Agency system continued till it
was abolished by an act of Parliament in 1970.
1947 Manufacture of boilers for imported locomotives
commenced. This line was discontinued in April 1958.
1948 Steam Road Roller introduced in collaboration with Marshal Sons
(UK).
1950 Collaboration signed with M/s
1954 Collaboration with M/s Daimler-Benz AG,
1956 Steel foundry set up in collaboration with Usines Emile Henricot of Court
1959 Research and Development Centre set up at
1960 The company's name, which was Tata Locomotive & Engineering Company
Limited, was changed to Tata Engineering & Locomotive Company Limited
1961 Collaboration with M/s Pawling & Harnischfeger (P&H),
1964 Manufacture of popular 1210 vehicle model (with 7.5 T payload)
commenced.
1966 Acquisition of Investa Machine Tool Company Setting up of Machine Tools
Division at Pune. Engineering Research Centre set up at Pune to cater to
automobile research and development.
1967 Press Tool Division set up at Pune. Vehicle manufacture facilities
steadily built up at Pune.
1968 Collaboration with M/s Hueller Hille Gmbh,
1969 The 'T' trade mark symbol replaces the three-pointed Mercedes Star.
1970 Last locomotive produced. (Cumulative production 1155 nos.)
1971 DI engines introduced.
1977 First commercial vehicle produced at Pune.
1983 HCVs, including articulated vehicles, introduced.
1984 Collaboration with M/s Hitachi Construction Machinery Company Limited,
1985 First hydraulic excavator produced under
1986 First Light Commercial Vehicle - TATA 407 produced. This was a completely
indigenous design with minimal import content. Also met fuel efficiency norms
specified by the government.
1987 Second model of completely indigenously designed LCV-TATA 608 produced.
LPT 2416 a multi-axled vehicle introduced.
1989 Third model of LCV - Tatamobile 206 produced Collaboration with M/s
Kloth-Senking Metalligessari,
1990 First EX model hydraulic excavator produced. Indigenously designed
front-end wheel loader - TWL 3036 introduced.
1991 Introduction of indigenously designed passenger cars - Tata Sierra and
Tata Estate. TAC 20 crane produced. One-millionth vehicle rolled out.
1992 Production of MCV's commenced at
1993 Joint Venture Agreement signed with Cummins Engine Company Inc. to
manufacture high horse power and emission-friendly diesel engines for medium
and heavy commercial vehicles. Tata Cummins Private Limited incorporated in
1994 Tata Sumo - a multi-utility vehicle launched. LPT 709 - a full forward
control, light commercial vehicle launched. Joint Venture Agreement signed with
M/s Daimler - Benz / Mercedes - Benz for manufacture of Mercedes-Benz passenger
cars in
1995 Collaboration with
1996 First engine produced by Tata Cummins in January 1996. LPT 2516 vehicle
fitted with Tata Cummins engine launched on March 4, 1996. Tata Sumo Deluxe
launched. Tata Holset's turbo charger plant inaugurated on November 25, 1996.
688 acres of land at Dharwad (Karnataka) were allotted for Auto and CEBU Units,
in Dec' 1996. Concorde Motors Limited, a Joint Venture was established between
Tata Engineering and Jardine International Motors (
1997 Industrial Entrepreneurs Memorandum was filed for taking up manufacture of
special purpose vehicles and construction equipment at Dharwad in Jan' 1997.
Management Services Division of the Company was transferred to the wholly owned
subsidiary of Tata Engineering - Tata Technologies (I) Limited, in Apr' 1997.
Tata Sierra Turbo launched. 100,000th Tata Sumo rolled out. The commercial
vehicle, LPT 909 introduced.
1998 Tata Safari -
1999 An overwhelming 115,000 bookings for Indica were made against full payment
within a week, in Jan' 1999. New TATA Logo unveiled. The company would
hereafter be called ' Tata Engineering'. Commercial production of Indica begins
and first car is sold. Construction Equipment Business Unit was transferred to
TELCON. In Oct' 1999, the Company won the National award for R&D Efforts in
Development of Indigenous Technology in the Mechanical Engineering Industries
Sector instituted by Department of Scientific and Industrial Research, Ministry
of Science and Technology for the year 1999.
2000 Order for 500 Nos. of Tata Indica received for
2001 The next generation of Indica, Indica V2 launched in January, along with 2
new models- DLS in Diesel and LSI in the Indica 2000 range. 100,000th Indica
rolled out in March. Launch of CNG Indica in June.
The Indica has been recognised as the 'most improved car in the industry' and
the Indica brand has emerged as one of the strongest Indian brands to have been
created of late as well established and renowned global brands. At the Auto
Expo 2002 held in
As per plans, the company came out with rights issue in Oct' 2001 raising Rs.
6710 Millions. The issue was of simultaneous but unlinked convertible
debentures with warrants and non-convertible debentures with warrants.
Convertible portion of Rs 4157.700 Millions has been converted on 31st March
2002 at Rs 65 per share. Hence share capital increased to Rs 3198.200 Millions
from Rs 2559 Millions. Equity will rise to Rs 3445.700 Millions between 6th
Jun' 2003 to 30th Sep' 2004 if all warrants issued are converted into shares at
the exercise price of Rs 120. The non-convertible portion of Rs 2558.600
Millions bears interest rate of 11%. In 2002-03 the company made a turnaround,
which was planned vigorously since 2001-02. The various initiatives which
focused on cost reduction, right sizing the organisation, volume / market share
gains, product quality and the launch of new products have enabled the company
a turnaround one. During 2003 the company entered into a manufacturing &
supply / distribution agreements with M G Rover Group
In 2003-04, the Company acquired Daewoo Commercial Vehicle Company Limited for
a price of Rs.4650 Millions at Gunsan in
The Board of directors have considered and approved the proposal for the merger
of its two subsidiaries, Telco Dadajee Dhackjee Limited & Suryodaya Capital
& Finance (
The Board have also considered and approved at the meeting held on
10.01.2005, the merger of Tata Finance Limited with the company. According to
the scheme of Amalgamation, all Equity Shareholders of Tata Finance Limited
will be entitled to receive Eight Equity Shares of Rs.10/- each of Tata Motors
Limited for every Hundred Equity Shares of Rs.10/- each held in Tata Finance
Limited
In 2004-05, the company launched Tata Sumo Victa, Tata Spacio Gold & Tata
Indigo Marina in Passenger Vehicles segment and Tata Globus & Starbus in
Commercial Vehicles segment.
In 2005-06, the company created a new segment in the domestic commercial
vehicle market by launching
In 2006-07, Tata Motors initiated steps for establishing a Small Car plant in
Singur,
During the year, Tata Motors entered a 70:30 Joint Venture with Thonburi
Automotive Assembly Plant Company,
In August 2006, Tata Motors has set up a new subsidiary for its vehicle
financing operations. The new entity, TML Financial Services Limited (TMLFSL),
is a 100% subsidiary and will function as an NBFC (Non Banking Finance
Company), for which it has received the necessary approval from the Reserve
Bank of
In October 2006, Tata Motors crossed the four million sales mark in
In November 2006, the company has acquired a South African manufacturing plant
from Japanese auto giant Nissan. This plant was acquired through Tata Africa
Holdings, a part of the company. It will be utilized for assembling and
manufacturing of vehicles.
In December 2006, Tata Motors entered an agreement with Fiat Auto S.p.A.,
OPERATING
RESULTS AND PROFITS:
FY 2006-07 was another outstanding year for the Company, which recorded peak
performance on almost all major financial parameters. The Company retained its
position as the largest automobile company in
The Company was conferred with the Golden Peacock Global Award for
Corporate Social Responsibility - 2007 in the 'Large Business' category by the
COMMERCIAL
VEHICLES:
The Company reported a sale of 334,238 commercial vehicles in the domestic and
overseas markets, representing a growth of 36.4% over the last fiscal.
The Company outperformed the industry and strengthened its market leadership
with a 39% growth in domestic commercial vehicle sales to an all time high of
298,586 nos. In the M&HCV segment, the Company recorded a 34.4% growth in
sales and increased its market share by 0.7% points to 62.7%. The overall
growth in the M&HCV market was mainly due to growing shift towards higher
tonnage vehicles like haulage tractors and multi axle vehicles as also the
Company's buses and coaches which found greater acceptance.
In the LCV segment, the Company recorded a 45.8% growth in sales and increased
its market share by 5.3% points to 65.4%. The overall growth in the LCV market
was mainly due to the impressive performance by the Company's mini truck - TATA
Ace. The Company rolled out the 100,000 th TATA Ace in a record time of 22
months since its launch in May 2005. The TATA Ace also won the Business World -
Marico's 'Business Innovation 2006' award.
Commercial vehicle exports grew by 18.1% to reach a peak of 35,652 vehicles
with M&HCV at 12,155 units, recording a 47.1% growth and LCVs at 23,497
units recording a negative growth of 7.2% over the previous year. Revenue from
the non-vehicular business witnessed a 21% growth in the fiscal, mainly due to
the growth in spare parts business.
During the year, the Company worked towards setting up a green-field
manufacturing facility in Uttarakhand. The Company entered into a 70:30 joint
venture with Thonburi Automotive Assembly Plant Company,
To further strengthen its position in the passenger carrier segment, the
Company formed a 51:49 Joint Venture with Marcopolo
The Company also signed a Memorandum of Understanding with IVECO, a company of
the Fiat Group to evaluate the feasibility of co-operation, across markets, in
the area of commercial vehicles, which encompasses a number of potential
developments in engineering, manufacturing, sourcing and distribution of
products, aggregates and components.
PASSENGER
VEHICLES:
The Company sold 246,042 passenger vehicles (including sale of 1,328 Fiat cars)
in the domestic and overseas markets, recording a growth of 17.7%. The Company achieved
its highest ever domestic sales of 228,220 vehicles, recording a growth of
21%.
The Company continues to be the second largest player in terms of domestic
sales, with a 16.5% market share of the overall Indian passenger vehicle
market. Exports at 17,822 passenger vehicles declined by 11% over the previous
year mainly due to the appreciating rupee and certain production constraints.
The TATA Indica's sales at 144,690 nos. were the highest for any year in the
domestic market with a growth of 30%, mainly due to the wide acceptance of the
new petrol (XETA) range and a facelift introduced in the last quarter of the
fiscal. The Company also launched a 1.2 Litre petrol version in November 2006
on the Indica range which is eligible for excise duty concessions under the
Government's small car definition.
The TATA Indigo range was expanded with the launch of the country's first
stretched sedan concept - the Indigo XL in the last quarter. With a total sale
of 34,310 vehicles, the TATA Indigo range continues to be the best seller in
the entry mid-size segment, although the segment has been declining for the
past two years. The Company introduced a new 1.4 Litre 101PS petrol and a 70PS
common rail diesel (DICOR family) engine on the Indigo range as well as a
facelift during the year.
The Company's sales and market share were slightly impacted due to a fire in
September-06 in the paint shop of the Car Plant at Pune disrupting manufacturing
operations. The Company ensured minimum loss of production by taking various
steps on priority and operations were gradually restored during the year. The
Company is fully insured against the loss arising due to fire.
The TATA Sumo and the TATA Safari recorded the highest ever sales of 47,892
vehicles in the utility vehicle segment, recording a 26% increase over last
year. Price re-positioning of the TATA Safari range helped the model achieve a
growth of 237% over last year.
In December 2006, the Company signed an agreement with Fiat Auto S.p.A.,
During the year, the Company initiated steps for establishing a Small Car plant
in Singur,
The Company's brands continued to be recognized at various forums. The TATA
Indica was ranked as one of
The Company celebrated its 10th year at the Geneva Motor Show with the
unveiling of the Tata Elegante concept, a sedan based on the new platform under
development, highlighting styling cues likely to be seen on the Company's new
generation of cars.
TATA
MOTOR FINANCE - CUSTOMER FINANCING INITIATIVES:
The vehicle financing division of the Company and its wholly owned subsidiary
company, TML Financial Services Limited operate under the brand name 'Tata
Motor finance (TMF)'. TMF financed 1,65,376 new vehicles, a growth of 71.8%
over 96,247 in the previous year. With disbursals of Rs.94150 Millions, a
growth of 71.8% over Rs.54790 Millions in the previous year, TMF has emerged as
the third largest vehicle financier in the domestic market.
During the year, TMF extended support to the Company’s vehicle sales by
financing 31.4% of the total domestic sales, compared to 23.8% in the previous
year. Given this growth, TMF is on course to become a strong captive financing
arm to support the vehicle sales business as well as to de-risk the cyclical
revenue stream of this business. The extensive network of TMF will also
complement the dealer network of vehicle sales, thus augmenting the reach of
the Company.
In the Commercial Vehicle financing segment, TMF achieved a market share of
37.7%, with total disbursements for FY 06-07 at Rs.61220 Millions, recording a
66% growth. TMF financed 100,088 units, an increase of 63% over the previous
year. The Passenger car financing arm of TMF continued to grow at a CAGR of
70%, thus supporting the Tata Motors Passenger Car sales, by financing 28.8% of
its total domestic sales. During the year, TMF financed 65,288 units,
disbursing Rs.20680 Millions and posting a growth of 79% over last year. The
Construction Equipment finance grew by 292% (Rs.6630 Millions) against Rs.2260
Millions in the previous year, recording a CAGR of 164% and emerged as the No.1
financer to Telco Construction Equipment Company Limited, a subsidiary of the
Company, with an aggregate market share of 32% (22% in 2005-06).
FINANCE:
In spite of significant increase in the Company's capital expenditure spending
on its new projects, the Company could maintain overall borrowings of
Rs.40091.400 Millions as on March 31, 2007 at a Debt: Equity ratio of 0.58. In
fact, net of its vehicle financing portfolio, the Company is a debt free
company as on March 31, 2007.
The Company's rating for foreign currency borrowing has been upgraded by
Standard & Poor from BB to BB+ and the same is under review with Moody's.
For borrowing in local currency, the same was maintained at AA+ by ICRA and
CRISIL.
The Company has been successful in effective management of currency risks
amidst sharp increase in volatilities in the past years. On account of this and
further due to significant appreciation of Rupee in the current year, the
Company recorded a net exchange gain of Rs.1304.800 Millions as compared to a
net exchange loss for the previous year of Rs.185.300 Millions.
IT AND
RESEARCH AND DEVELOPMENT INITIATIVES:
The Company focused on aligning IT objectives with business goals and made
significant investments to enhance IT capabilities. On product and process
design, the Company invested Rs.550 Millions in areas of CAD and Digital
Manufacturing. A number of new Knowledge Based Engineering (KBE) tools were
developed to improve productivity and throughput of design activities. All new
vehicle platforms were founded on the 'Teamcentre' Product Lifecycle Management
(PLM) solution which enables vastly improved CAD Integration, Project
Management and collaborative product development with Vendors. The solution
also provides low cost visualization of CAD data and digital mock up.
Using their SAP ERP Global templates, the ERP infrastructure required for
Uttarakhand operations was provided and preparatory work of the Small Car and
for the joint ventures was initiated. The Company's Oracle based Customer
Relations Management programme has now been deployed to 1000 locations and over
15,000 users in the domestic and international channel. Real time data on the
customer and the vehicle is now available across the Company and the
distribution channel. Data warehousing is now being used extensively across the
organization both on SAP and CRM.
The Company continued its focus on research and development activities in
product development, environmental technologies and vehicle safety through its
Engineering Research Centre based in Pune and
SUBSIDIARY
AND ASSOCIATE COMPANIES:
Subsidiary Companies:
For the Financial Year ended March 31, 2007, the Company's subsidiaries, on an
aggregate basis, have significantly improved their financial performance and
profitability. A brief profile of the subsidiary companies and their main
financial parameters for FY 2006-07, are in this Annual Report. Brief details
of the Company's existing subsidiaries is given below:
Tata Daewoo Commercial Vehicle Company Limited (TDCV):
Telco Construction Equipment Company Limited (Telcon):
Telco Construction Equipment Company Limited (Telcon) is engaged in the
business of manufacturing and sale of construction equipment and allied
services in which the Company has a 60% holding with the balance 40% being held
by Hitachi Construction Machinery Company Limited,
Tata Technologies Limited (TTL): Tata Technologies Limited (TTL) is a
subsidiary of the Company and has a holding 84.76% of TTL's equity capital.
Through its operating companies, INCAT and Tata Technologies iKS, the Tata
Technologies group provides specialized Engineering & Design Services
(E&D), Product Lifecycle Management (PLM) and product-centric IT services
to leading manufacturers. It responds to customers' needs through its 17
subsidiary companies having operations in 45 cities across 12 countries on
three continents and through its offshore development centers in
INCAT - founded in 1989 and acquired by Tata Technologies in October 2005, is
the world's leading independent provider of E&D, Product & Information
Lifecycle Management, Enterprise Solutions and Plant Automation. INCAT focuses
on enabling manufacturers to improve revenue and profit by realizing superior
products. INCAT's services include product design, analysis and production
engineering, Knowledge Based Engineering, PLM, Enterprise Resource Planning and
Customer Relationship Management systems. INCAT also distributes, implements
and supports PLM products from leading solution providers in the world such as
Dassault Syst ms, UGS and Autodesk. With a combined global work force of more
than 3,000 employees, the Company has operations in the
Tata Technologies iKS:
Tata Technologies iKS is a global leader in engineering knowledge
transformation technology. For over 15 years, iKS has enabled engineering
knowledge transformation through 'i get it', which is the only web application
in the world offering 100,000 hours of engineering knowledge for AutoCAD,
INVENTOR, Solid Works, Solid Edge, UG/NX, Teamcenter, COSMOS Works, and CATIA
on a single delivery platform application.
TTL had 17 subsidiary companies as at March 31, 2007. A few companies out of
these subsidiaries are being woundup, liquided or merged as also various
restructing initatives are being taken with the objective of bringing in
operating and tax efficiencies by sharpening focus on its services and product
business, fixing territorial responsibility for top and bottom line growth and
establishing a global delivery centre supporting the overall business.
Outlook:
Fiscal 2007-08 marks the beginning of the Eleventh Five Year Plan which targets
average annual growth rate of 9% as compared to 7.6% achieved in the Tenth Five
Year Plan. The automobile industry has deep forward and backward linkages with
the economy and stands to benefit from the economic growth. Continued focus on
road and infrastructure development, increase in industrial activity and launch
of new models, would enable the Indian automotive industry to move on the
higher growth trajectory. However, slow down in the construction activity,
adverse liquidity position, upward movement in consumer interest rates and
increase in fuel and input material prices, remain a cause of concern and would
adversely impact industry sales.
The Industry outlook for commercial and passenger vehicles remains positive
albeit with lower growth from the previous year. Further, interest rates growth
and tightening of liquidity, would deteriorate this position. The Company has
planned to further fortify its position in the coming fiscal by launching new
products in various segments of the automotive market. The Company's presence
in various segments and across geographies would help it to offset some of the
shrinkage/slow growth in the domestic market. The Company is also expanding its
manufacturing footprint to meet its higher growth aspirations.
Financial Performance as a measure of Operational Performance:
The Company's financial performance continued to improve in this Financial Year
owing to an impressive volume growth of 27.8% and continued efforts by the
Company to maintain its margins, driven mainly by cost reduction efforts. The
following table sets forth the breakup of the Company's expenses as part of the
net revenue.
Business
Overview:
The Indian economy witnessed an accelerated GDP growth of 9.2% in FY06-07 as
compared to 7.5% in FY04-05 and 9% in FY05-06. Economic growth, road and
infrastructure development, sustained freight availability and buoyant freight
rates had a positive impact on commercial vehicle sales. The passenger vehicle
sales were favorably impacted by reduction in excise duty on small cars, growth
in disposable income and launch of new models. The domestic commercial and
passenger vehicle sales witnessed a 23.7% growth during the year, in spite of
increase in consumer interest rates, tightening of liquidity position in the
last quarter and peaking of fuel prices in the first few months of the fiscal
with a gradual decline during the year. Vehicle exports continued to grow and
witnessed a 14.8% growth over last year.
With a growth of 28%, the Company outperformed the industry and recorded its
highest ever sales of 580,280 (334,238 commercial; 246,042 passenger) vehicles.
The Company's exports witnessed a growth of 6.5% to 53,474 nos.
The Company increased its overall market share in four wheelers to 27.7% by
launching new products and variants, strengthening its marketing activities and
expanding the distribution network.
The company is in trade terms with: -
Atlantic Engineering Private Limited
Auto Plastic Injection Moulders
Auto Works
Auto Brakes and Ancillaries Private Limited
Auto Clutches
Auto Feed
Auto Fibre Craft
Auto Knight Private Limited
Auto Lab
Auto Steel and Rubber Industries
Auto Turn Industries
Auto Window
Autocomp Corporation
Autocomps Engineering (Pune) Private Limited
Autofeed
The company’s fixed asset of important value include Land,
Building, Leasehold, Railway Sidings, Plant, Machinery, Equipments, Water
System & Sanitation, Furniture, Fixtures & Office Appliances, Technical
Know-how, Vehicles and Transport, Capital Work-in-Progress.
AS PER WEBSITE
Press Releases
Released on : 4th July, 2007
Tata Motors bags National Award for Excellence in Cost
Management
Tata Motors has won the National Award for Excellence in Cost Management for
the year 2006, conferred by the
Tata Motors bagged the first prize in the ‘Manufacturing’ category in the
private sector.
A high profile 17-member jury led by the former Chief Justice of India, Mr J S
Verma, chose the winners after a comprehensive selection process. The criteria
for selection were i) better practices for resource management ii) efficient
utilisation of capacity and working capital iii) quality augmentation programme
and R&D efforts and iv) precise information on performance.
About Tata Motors
Tata Motors is
Issued
by:
Debasis Ray
Head (Corporate Communications)
Tata Motors Limited
Phone: 022 66657209;
E-Mail: debasis.ray@tatamotors.com
Website: www.tatamotors.com
Sarika Kapoor/Suresh Rangarajan
Vaishnavi Corporate Communications
Tel: 022-66568787/8759/8741/8713
Fax: 022-66568788
E-mail:skapoor@vccpl.com
Released on : 2nd July, 2007
Total vehicle sales at 44,317 nos.
Year-on-Year and Month-on-Month sales flat
Tata Motors reported a total sale of 44,317 vehicles (including exports) for
the month of June 2007, a decline of 2% over vehicles sold in June last year.
Cumulative sales for the company at 1,27,361 nos. are growing by 1%. The
domestic market continues to be sluggish, due to the high interest rate regime
severely affecting retails.
Commercial Vehicles
The company’s sales of
commercial vehicles in June 2007 in the domestic market were 21,417 nos., a
decline of 0.7% over 21,565 vehicles sold in June last year. M&HCV sales
stood at 11,763 nos, a decline of 0.4% over June 2006, while LCV sales were
9,654 nos., a decline of 1% over June 2006.
Cumulative sales of commercial
vehicles in the domestic market for the fiscal were 61,699 nos., a decline of
2.3% over last year. Cumulative M&HCV sales stood at 32,655 nos., a decline
of 10.8% over last year, while LCV sales for the fiscal were 29,044 nos., an
increase of 9.5% over last year.
Passenger Vehicles
The passenger vehicle business
reported total sales of 17,418 vehicles in the domestic market in June 2007, a
decline of 5.7% over June 2006. The Indica reported sales of 11,727 nos., a
decline of 4.4% over June 2006. The Indigo family registered sales of 2,354
nos., a decline of 18.4% over June 2006. The Sumo and Safari accounted for
sales of 3,337 nos., an increase of 0.9% over June 2006.
Cumulative sales of passenger
vehicles in the domestic market for the fiscal were 51,840 nos., an increase of
3.9% over the previous year. Cumulative sales of the Indica were at 34,599
nos., an increase of 4.3%. Cumulative sales of the Indigo family were at 7,201
nos., a decline of 13.4%. Cumulative sales of Sumo and Safari were 10,040 nos.,
an increase of 19.3%.
Exports
The company's sales from exports
at 5,482 vehicles in June 2007 grew by 5.5% as compared to 5,195 vehicles in
June 2006. The cumulative sales from exports in the current period at 13,822
nos. have recorded a 5.5 % growth over the previous year.
Issued
by:
Debasis Ray
Head (Corporate Communications)
Tata Motors Limited
Phone: 66657209; E-Mail: debasis.ray@tatamotors.com
www.tatamotors.com
Released on : 31st July, 2007
Tata Motors Consolidated Net Revenue grows by 13% to
Rs.76312.800 Millions in 1st Qtr, 2007-08 Consolidated PAT up by
30% to Rs.4972.200 Millions
Tata Motors today reported Consolidated Revenues (net of excise) of
Rs.76312.800 Millions for the quarter ended June 30, 2007 of the financial year
2007-08, an increase of 13% over Rs.67333.200 Millions in the corresponding
quarter of 2006-07. The Consolidated PAT was Rs.4972.200 Millions, compared to
Rs.3816.700 Millions in the corresponding quarter last year.
The company’s Standalone Revenues (net of excise) was Rs.60568.200 Millions, an
increase of 5% compared to Rs.57495.600 Millions in the corresponding quarter
last year. Profit Before Tax (PBT) was Rs.5921.300 Millions, an increase of 19%
over Rs.4982.500 Millions in the corresponding quarter last year, while Net
Profit increased by 22% to Rs.4667.600 Millions, compared to Rs.3818.500
Millions in the corresponding quarter last year. Steep increase in input costs
and drop in the volumes of medium & heavy trucks impacted the operating
margin of the company (net of foreign exchange gain) in this quarter.
The sales volume for the quarter (including exports) at 1,28,095 vehicles grew
by 1% over 1,26,394 vehicles in the corresponding period last year. Vehicle
sales in the domestic market were impacted, in varying degrees between the
commercial and passenger vehicles segments, due to the high interest rate
regime affecting retails. Domestic sales of commercial vehicles decreased by 2%
to 61,633 units, while domestic sales of passenger vehicles at 52,573 units
grew by 5%.
Tata Motors exported 13,889 vehicles during the quarter, a growth of 6% over
13,161 units in the corresponding quarter last year.
During the quarter, Tata Motors launched several new vehicles. In passenger
vehicles, the company has introduced the Indigo LS, an entry level common rail
diesel (DICOR) offering in the sedan range, expanded the long wheel base Indigo
XL’s range with the Indigo XL Classic, and launched an upgraded range of Tata
Spacio, its entry level utility vehicle. The company also introduced a new
range of commercial vehicles for passenger transportation, the Magic and the
Winger, which are expected to create new segments. The mini-truck, Ace, has
been introduced in
The audited financial results for the quarter ended June 30, 2007, are
enclosed.
Issued by:
Debasis Ray
Head (Corporate Communications)
Tata Motors Limited
Phone: 00 91 22 66657209; E-Mail: debasis.ray@tatamotors.com
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.67 |
|
|
1 |
Rs.82.12 |
|
Euro |
1 |
Rs.55.60 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|