MIRA INFORM REPORT

Report Date :

29.07.2008

IDENTIFICATION DETAILS

Name :	TATA MOTORS LIMITED
Registered Office :	Bombay House, 24, Homi Mody Street, Hutatma Chowk, Mumbai – 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
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 :	Manufacturer 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 391975000
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 :	Bombay House, 24, Homi Mody Street, Hutatma Chowk, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91–22–66658282 / 66658282
Fax No.:	91–22–66657799 / 66657799
E-Mail :	telco@tata.com inv_rel@tatamotors.com
Website :	http://www.tatamotors.com http://www.telcoindia.com
Corporate Office:	Durga Expressway P O Singer B O Via Singur S O H 712409, West Bengal, , India
Mobile No.:	91-9820615882 / 3982
Fax No.:	91-22-25705042
Factory :	v Pimpri, Pune – 411 018, Maharashtra v Jamshedpur Towns Post Office, Jamshedpur – 831 010, Bihar v Chinchwad, Pune – 411 033, Maharashtra v Chinhat – Deva Road, Lucknow – 227 105, Uttar Pradesh v P S Singur, District Hooghly, West Bengal – 712 409, India v KIADB Block – 2, Belur Industrial Area, Dharwad – 580 007, Karnataka
Branches :	v 503, Barton Centre, 5th Floor, 84, Mahatma Gandhi Road, Bangalore - 560 001 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, Jawaharlal Nehru Road, Kolkata - 700 071 Tel: 91-33-22883087, Fax : 91-33 - 22883062 e-mail : tsrlcal@tatashare.com v Plot No.2/42, Sant Vihar, Ansari Road, Daryaganj, New Delhi- 110002 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, Harvard Business School
Other Directorships: -	· Birla-Tata AT and 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. R A Mashelkar
Designation :	Director
Name :	Mr. Ravi Kant
Designation :	Executive Director
Name :	Mr. Praveen P. Kadle
Designation :	Managing 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
Name :	Mr. P M Telang
Designation :	Executive Director (Commercial Vehicles)
Name :	Mr. Rajiv Dube
Designation :	President (Passenger Cars)
Name :	Mr. C Ramakrishnan
Designation :	Chief Financial Officer
Name :	Mr. S N Ambardekar
Designation :	Plant Head (Jamshedpur – Plant)
Name :	Mr. A M Mankad
Designation :	Head ( Car Plant)
Name :	Mr. U K Mishra
Designation :	Vice President (Add and Materials – CVBU)
Name :	Mr. S Krishnan
Designation :	Vice President (Commercial – PCBU)
Name :	Mr. P Y Gaurav
Designation :	Vice President (Corp. Finance – Account and Taxation)
Name :	Mr. S J Tambe
Designation :	Vice President (Human Resources)
Name :	Mr. R Pisharody
Designation :	Vice President (Sales and Marketing - CVBU)
Name :	Mr. A Gajendra Gadkar
Designation :	Chief Internal Auditor

KEY EXECUTIVES

Name :	Mr. A P Arya
Designation :	President (Jamshedpur and Lucknow Works)
Name :	Mr. P M Telang
Designation :	President (Pune and 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 and Marketing) CVBU
Name :	Mr. RT Singh
Designation :	Vice President (Manufacturing)
Name :	Mr. K C Girotra
Designation :	Vice President (Lucknow Works and FBV)
Name :	Mr. R S Thakur
Designation :	Vice President (Finance)
Name :	Mr. R R Akarte
Designation :	Vice President (Manufacturing)
Name :	Mr. M V Rajarao
Designation :	Vice President (Manufacturing)
Name :	Mr. H. K. Sethna
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on 31.03.2008

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group^2
(1) Indian
Bodies Corporate	128464429	38.17
Trust	354976	0.10
Sub Total (A) (1)	128819405	38.27
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10160944	3.02
Financial Institutions / Banks	1384661	0.41
Central Government / State Government(s)	407181	0.12
Insurance Companies	55287401	16.43
Foreign Institutional Investors	65388543	19.43
Foreign Institutional Investors - DR	7892	0.00
Foreign Bodies - DR	112219	0.03
Foreign Nationals DR	700	0.00
Sub Total (B) (1)	132749541	39.44
(B) (2) Non-Institutions
Bodies Corporate	3658768	1.09
Individuals
Individuals - i. Individual shareholders holding nominal share capital upto Rs.0.100 Million	39035116	11.60
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1791960	0.53
Directors & their relatives	118787	0.04
Non Resident Indians	2565342	0.76
Clearing Member	305627	0.09
Trusts	77182	0.02
Overseas Corporate Bodies	98	0.00
Foreign Corporate Bodies (including FDI)	27469173	8.16
Sub Total (B) (2)	75022053	22.29
Total Public Shareholding (B) = (B) (1) + (B) (2)	207771594	61.73
Total (A) + (B)	336590999	99.99
(C) Shares held by custodians against which depository receipts have been issued	48912955	0.01
Grand Total (A) + (B) + (C)	385503954	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Seller of Commercial Vehicles, Passenger Vehicles, Construction Equipments and Machine Tools.

Products :

Item Code No. (ITC CODE)	8702 to 8708 except 8705 and 8707
Product Description	Chassis and Vehicles for transport of goods and passengers, including motorcar and parts thereof.

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 and Systems Private Limited

v Auto Turn Industries

v Best Cast IT Limited

No. of Employees :

22349

Bankers :

v Bank of America

v State Bank of India

v Central Bank of India

v Bank of India

v Bank of Baroda

v Standard Chartered Bank

v Bank of Maharashtra

v The Hongkong and Shanghai Banking Corporation Limited

v Union Bank of India

v Citibank N.A.

v Bank of Nova Scotia

v Deutsche Bank

v Bank of America

v Corporation Bank

v HDFC Bank Limited

v ICICI Bank Limited

Facilities :

Secured Loans

	31.03.2008 (Rs. In millions)	31.03.2007 (Rs. In millions)
(a) Privately placed Non-Convertible Debentures :
(i) 14.75% Non-Convertible Debentures (2008)	705.000	705.000
(ii) Floating Rate Non-Convertible Debentures (2007)	--	50.000
(iii) Secured Rated Redeemable Non-Convertible Debentures	1000.000	--
(b) Loan from Technology Development Board	--	60.000
(c) Sales Tax Deferment Loan	484.500	732.800
(d) From Banks :
(i) Buyers line of credit	8498.000	4312.600
(ii) Loans, Cash Credit and Overdrafts Accounts	13932.400	14360.000
Total	24619.900	20220.400

Notes:

1 I. The Issued and subscribed capital includes :

(a) Ordinary Shares allotted as fully paid up shares for consideration other than cash:

- 7,53,470 Ordinary Shares allotted to Daimler – Benz AG in consideration of materials supplied to the Company in the financial year 1956-57,

- 3,00,000 Ordinary Shares allotted to the Shareholders of erstwhile Investa Machine Tools and Engineering Company Limited in terms of the Scheme of Amalgamation sanctioned by the Bombay High Court in the financial year 1966-67,

- 7,59,510 Ordinary Shares allotted to the Shareholders of the erstwhile Central Bank of India in terms of the Scheme of Amalgamation in the financial year 1970-71,

- 1,83,823 Ordinary Shares issued to the Shareholders of the erstwhile Noduron Founders Maharashtra Limited in terms of the merger in the financial year 1992-93,

- 15,24,30,083 (as at March 31, 2007 15,24,30,083) Ordinary Shares issued to Financial Institutions and holders of convertible debentures / bonds on conversion of term loans / debentures / bonds,

- 1,45,04,949 Ordinary Shares issued to the Shareholders of the erstwhile Tata Finance Limited in terms of the merger in the financial year 2005-06.

(b) 11,12,92,760 (as at March 31, 2007 11,12,92,760) Ordinary Shares issued as fully paid up Bonus Shares by utilising Securities Premium Account, Capital Reserve, Capital Redemption Reserve, Amalgamation Reserve, contribution for Capital Expenditure Account and General Reserve.

(c) 2,55,02,377 (as at March 31, 2007 2,55,02,377) Ordinary Shares allotted against the exercise of equivalent number of warrants pertaining to the rights issue of 2001 at Rs.120/- per share.

(d) 2,57,11,937 (as at March 31, 2007 2,55,81,868) Ordinary Shares issued upon conversions of Foreign Currency Convertible Notes (FCCNs). Details are as follows:

(i) 1% FCCN due 2008

1,83,98,095 (as at March 31, 2007 : 1,83,98,095) Ordinary Shares issued against 99,940 (as at March 31, 2007 : 99,940) Notes. There is no conversion during the year for these Notes (for 2006-07 : 16,20,003 shares issued against 8,800 Notes).

(ii) 0% FCCN due 2009

73,13,842 (as at March 31, 2007 : 71,83,773) Ordinary Shares issued against 95,590 (as at March 31, 2007 : 93,890) Notes. During the year 1,30,069 (for 2006-07 : 9,19,297) Ordinary Shares were allotted , consequent to conversion of 1,700 (for 2006-07: 12,015) Notes.

(e) Subsequent to the year ended March 31, 2008, 1500 Zero coupon FCCN (due 2009) aggregating U.S.$ 1.50 million (Rs. 6.38 crores), have been converted into 1,14,769 Ordinary Shares.

II. The entitlements to 49,989 Ordinary Shares are subject matter of various suits filed in the courts / forums by third parties for which final order is awaited and hence kept in abeyance.

2 Secured Loans :

(i) Nature of Security (on loans including interest accrued thereon) :

(a) 14.75% Non-Convertible Debentures (2008) are secured by a pari passu charge by way of equitable mortgage of immovable properties and fixed assets in or attached thereto, both present and future, and a first charge on all other assets save and except stocks and book debts, present and future, the Export

Showroom at Shivsagar Estate, Worli, Mumbai; Lloyds Showroom and basement at Prabhadevi, Mumbai; plot of land with structures at Mahim, Mumbai; the Company’s residential flats at Mumbai, Pune and Jamshedpur and the Company’s freehold land admeasuring 4245 sq. mtrs. approximately, situated at village Mouje - Naupada in Thane District.

(b) Secured Rated Redeemable Non-Convertible Debentures are secured by a pari passu charge by way of equitable English mortgage of the Company’s lands, freehold and leasehold, together with immovable properties, plant and machinery and other movable fixed assets in or attached thereto, both present and future, situated at Chinchwad, Pimpri, Chikhali and Waghire in Pune District and village Mouje – Naupada in Thane District in the State of Maharashtra save and except Exports Showroom at Shivsagar Estate, Worli, Mumbai; the residential flats of the Company; the Lloyds Showroom and Basement at Prabhadevi, Mumbai; the plot of land with structures at Mahim, Mumbai; the Company’s works situated at Lucknow, Dharwad, Jamshedpur, Pantnagar and Singur; and movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future, situated at Indica car plant at Chikhali, Pune.

(c) Sales Tax Deferment Loan is secured by a residual charge on the immovable and movable properties at

Lucknow.

(d) The Buyers line of credit from Banks is repayable at the end of three years from the drawdown dates. All

the repayments are due in 2009-10 and 2010-11.

(e) Loans, Cash Credit Accounts, Overdrafts Accounts and Buyers line of credit from Banks are secured by

hypothecation of existing current assets of the Company viz. stock of raw materials, stock in process, semifinished

goods, stores and spares not relating to Plant and Machinery (consumable stores and spares),

bills receivable and book debts including receivable from Hire Purchase / Leasing and all other movable

current assets except Cash and Bank Balances, Loans and Advances of the Company both present and

future

(ii) Terms of Redemption :

Non Convertible Debentures (NCD’s)	Redeemable on
14.75% Non-Convertible Debentures (2008)	October 11, 2008 (At par)
Secured Rated Redeemable Non-Convertible Debentures	Daily Put - Call (At par)

Unsecured Loans

	31.03.2008 (Rs. In millions)	31.03.2007 (Rs. In millions)
(a) Foreign Currency Convertible Notes (FCCN) / Convertible Alternative Reference Securities (CARS)	36610.300	17646.900
(b) Long term loans in foreign currency - others	--	2028.300
(c) Commercial Papers	1000.000	--
(d) Short term loans from subsidiaries	575.000	195.800
Total	38185.300	19871.000

Banking Relations :

Good

Auditors :

Name :

Deloitte Haskins and Sells

Chartered Accountant

Solicitors :

Name :

v Mulla and Mulla and Craigie

v Blunt and Caroe

v AZB and Partners

Memberships :

Confederation of Indian Industry

Associates :

v Concorde Motors (India) Limited

v Float Glass India Limited

v Tata Engineering Services Private Limited

v Nita Company Limited

v Haldia Petrochemicals Limited

v Tata Auto Computer Systems Limited

v Tata Cummins Limited

v Tata Motors Finance Limited

v Tata Holset Limited

v Tata International Limited

v Tata Precision Industries Private Limited

v Tata Sons Limited

v Nita Company Limited

v The Tata Iron and Steel Company Limited

v Tata Project Limited

v Tata Export Limited

v Tata Electric Companies

v TRF Limited

v Tata Consultancy Services

v Hispano Carrocera, SA

v TSR Darashaw Limited

v Tata Securities Private Limited

v Telcon Ecoroad Resurfaces Private Limited

v Automobile Corporation of Goa Limited

Subsidiaries :

v Telco Construction Equipment Company Limited

v Tata Technologies (India) Limited

v Tata Dawoo Commercial Vehicle Company Limited

v Tata Motors European Technical Centre Plc.

v Tata Motors Insurance Services Limited

v Tata Marcopolo Motors Limited

v Tata Motors (Thailand) Limited

v Tata Motors SA (Proprietory) Limited

v TML Holdings Limited, UK

v TML Holdings Private Limited, Singapore

v TML Distribution Company Limited

v Sheba Properties Limited

v Minicar (India) Limited

v HV Axles Limited

v HV Transmissions Limited

v Tata Technologies, U.S.A.

v Telco Dadajee Dhackjee Limited

v TAL Manufacturing Solutions Limited

Joint Ventures :

v Flat India Automobiles Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
450,00,000	Equity Shares	Rs. 10/- each	Rs. 4500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38,55,03,954	Equity Shares	Rs. 10/- each	Rs. 3855.039 Millions
	Less : Calls in arrears		Rs. 0.100 million
	Share forfeiture		Rs. 0.500 million
	Total		Rs. 3855.439 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		3855.400	3854.100	3828.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		74539.600	64843.400	51542.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		78395.000	68697.500	55370.700
LOAN FUNDS
1] Secured Loans		24619.900	20220.400	8227.600
2] Unsecured Loans		38185.300	19871.000	21140.800
TOTAL BORROWING		62805.200	40091.400	29368.400
DEFERRED TAX LIABILITIES		9757.200	7868.300	0.000
TOTAL		150957.400	116657.200	84739.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		53873.100	38812.600	35700.400
Capital work-in-progress		50649.600	25133.200	9511.900
INVESTMENT		49102.700	24770.000	20151.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24218.300	25009.500	20122.400
	Sundry Debtors	11307.300	7821.800	7157.800
	Cash & Bank Balances	23973.100	8267.600	11194.300
	Other Current Assets	8.600	59.400	0.000
	Loans & Advances	44330.500	63962.200	59646.100
Total Current Assets		103837.800	105120.500	98120.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	86672.000	63636.800	66736.100
	Provisions	19894.300	13643.200	12150.400
Total Current Liabilities		106566.300	77280.000	78886.500
Net Current Assets		(2728.500)	27840.500	19234.100
MISCELLANEOUS EXPENSES		60.500	100.900	141.200
TOTAL		150957.400	116657.200	84739.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		287308.200	274700.300	236734.300
Other Income		4831.800	2451.900	6939.200
Total Income		292140.000	277152.200	246242.600
Profit/(Loss) Before Tax		25764.700	25731.800	20533.800
Provision for Taxation		5475.500	6597.200	5245.000
Profit/(Loss) After Tax		20289.200	19134.600	15288.800
Exports :
F.O.B. Value of Goods		27540.500	26873.000	NA
Interest and Dividend		900.700	31.100	NA
Others (Profit on sale of investments)		0.000	242.700	NA
Total		28441.200	27146.800	NA
Imports :
Raw Materials and Components		10510.500	9300.500	NA
Machinery Spares and Tools		366.200	319.200	NA
Capital Goods		13143.100	4727.600	NA
Spare Parts		56.900	113.800	NA
Other Items		131.600	86.600	NA
Total		24208.300	14547.700	NA
Expenditures :
	Raw Materials	0.000	0.000	142638.600
	Excise Duty	0.000	0.000	33801.300
	Power & Fuel Cost	0.000	0.000	2585.100
	Product Development Expenditure	643.500	850.200	0.000
	Other Manufacturing Expenses	267699.000	247347.100	11419.200
	Employee Cost	0.000	0.000	11414.800
	Selling and Administration Expenses	0.000	0.000	9857.400
	Miscellaneous Expenses	0.000	0.000	8936.600
	Interest & Financial Charges	2823.700	3130.700	2934.900
	Depreciation	6523.100	5862.900	5209.400
	Other Expenditure	(11314.000)	(5770.500)	(3088.500)
Total Expenditure		266375.300	251420.400	225708.800

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	6.94	6.90	6.21
Net Profit Margin (PBT/Sales)	(%)	8.97	9.37	8.67
Return on Total Assets (PBT/Total Assets}	(%)	8.82	9.28	8.34
Return on Investment (ROI) (PBT/Networth)		0.33	0.37	0.37
Debt Equity Ratio (Total Liability/Networth)		1.36	0.11	1.42
Current Ratio (Current Asset/Current Liability)		0.97	1.36	1.24

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was (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 Daimler-Benz, Germany. Apart from manufacturing light, medium and heavy commercial vehicles, it also manufactures passenger cars, utility vehicles, excavators and machine tools. The manufacturing units are located at Jamshedpur, Pune, Lucknow and Pant Nagar in Uttarakhand. 

Major Milestones: 

1923 Peninsular Locomotive Company started its operations in Tatanagar, Jamshedpur (Inspired by the availability of steel from TISCO). This is the location of the Tata Motors Plant of today. 

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 Krauss-Maffei, West Germany for manufacture of steam locomotives. 

1954 Collaboration with M/s Daimler-Benz AG, West Germany, for the manufacture of medium commercial vehicles at Jamshedpur. First commercial vehicle produced within six months of agreement. 

1956 Steel foundry set up in collaboration with Usines Emile Henricot of Court St. Etienne, Belgium. 

1959 Research and Development Centre set up at Jamshedpur. 

1960 The company's name, which was Tata Locomotive and Engineering Company Limited, was changed to Tata Engineering and Locomotive Company Limited 

1961 Collaboration with M/s Pawling and Harnischfeger (PandH), U.S.A. for manufacture of cable type excavators and cranes. First crane produced in the same year. Commencement of exports - first truck exported to Ceylon, now, Sri Lanka. 

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, West Germany, for the manufacture of unit construction special purpose machines. 

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, Japan, for manufacture of hydraulic excavators. Expansion of capacity at Pune. 

1985 First hydraulic excavator produced under Hitachi collaboration. Broad banding of licence to manufacture only commercial vehicles above 8 Tonnes, includes all medium, heavy and light commercial vehicles, jeep type vehicles and passenger cars. Broad banding of excavator licence to manufacture all types of earthmoving machinery. Broad banding of machine tool licence to manufacture all types of machine tools. Collaboration with Niigata Engineering Company Limited, Japan for NC / CNC Horizontal Machining Centres and with Nachi-Fujikoshi Corp., Japan for NC/CNC In line Machining Centres and flexible manufacturing systems. 

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, Gmbh, West Germany, for know-how of manufacturing aluminium castings. Collaboration with Hitachi, Japan, for manufacture of a new generation EX series hydraulic excavator. 

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 Lucknow. LPT 2213 - a multi-axled vehicle launched. Collaboration with Nachi-Fujikoshi Corp., Japan, for manufacture of robots. 

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 Jamshedpur, Bihar, on 0ctober 20, 1993. 

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 India. Joint Venture Agreement signed with Tata Holset Limited, U.K. for manufacturing turbo chargers to be used on Cummins engines. Mercedes-Benz (India) Limited incorporated in Pune, Maharashtra, on November 22, 1994. Tata Holset Private Limited incorporated in Dewas, Madhya Pradesh, on December 20, 1994. Collaboration with Schaudt Maschinenbau GmbH, for manufacturing CNC cylindrical grinding machines. The Company was restructured into two Strategic Business Units : Automobile Business Unit(ABU), and Construction Equipment Business Unit (CEBU). 

1995 Collaboration with Hitachi, Japan, for the manufacture of mini excavator models EX 40 and EX 60. Production of robots in collaboration with Nachi-Fujikoshi Corp., Japan commenced. Mercedes Benz car E220 (W124) launched. Tata Cummins engine plant inaugurated. 

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 (Mauritius) Limited 

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 - India's first Sports Utility vehicle launched in Jan' 1998. Concorde Motors Limited, a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Limited was appointed as dealer for the Company's passenger cars in several cities across the country in Feb' 1998. Two millionth vehicle rolled out. Collaboration with Hitachi, Japan, for manufacture of Series V excavators to replace Series I and III machines in Mar' 1998. Indica, India's first fully indigenous car, launched in Dec' 1998. Telco Construction Equipment Company Limited (TELCON) came into as a subsidiary of Tata Engineering in Dec' 1998. 

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 and 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 Malta. First batch of 160 Nos. exported in Jan' 2000. Indica with Bharat Stage II (Euro II) compliant diesel engine launched in Feb 2000. Machine Tools and Growth Divisions, Axle Division and Transmission Division of Tata Engineering transferred to newly formed subsidiaries Telco Automation Limited, HV Axles Limited and HV Transmission Limited respectively on March 31 2000. The Automobile Business Unit was restructured into Commercial Vehicles Business Unit and Passenger Car Business Unit, in Mar 2000. Tata Engineering bagged the National Award for successful commercialization of indigenous technology by an industrial concern for the year 2000, for the indigenous development and commercialization of Tata Indica in Mar' 2000. Utility vehicles with Bharat Stage II (Euro II) compliant engine launched, in Mar 2000. Indica 2000, Bharat Stage II (Euro II) compliant with Multi Point Fuel Injection petrol engine launched in Apr' 2000. Hitachi inducted as an equity partner for TELCON under shareholder's agreement with Tata Engineering.  

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 Delhi in January 2002, the company unveiled the new three box Sedan offering on the Indica plat form and the same was successfully launched in the fag end of 2003 in the name of Indica Sedan as its first offering in the entry midsize segment. A seven seater Multi-purpose vehicle, Tata Indiva was unveiled at Geneva Auto Show in March2002. 

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 2559.000 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 120.000 millions. 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 and supply / distribution agreements with M G Rover Group UK for export of cars to UK and Europe. In order to reflect its core business of design, development and marketing of automobiles the Board has decided to change the name of the company to 'Tata Motors Limited'. 

In 2003-04, the Company acquired Daewoo Commercial Vehicle Company Limited for a price of Rs. 4650.000 Millions at Gunsan in Republic of South Korea. 

The Board of directors have considered and approved the proposal for the merger of its two subsidiaries, Telco Dadajee Dhackjee Limited and Suryodaya Capital and Finance (Bombay) Limited with the company at the meeting held on 10.01.2005. Considering that 100% of the paid up capital of the two subsidiaries is held by Tata Motors, thus no shares of Tata Motors Limited are contemplated to be issued under the proposed Scheme of Amalgamation. 

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 and Tata Indigo Marina in Passenger Vehicles segment and Tata Globus and Starbus in Commercial Vehicles segment. 

In 2005-06, the company created a new segment in the domestic commercial vehicle market by launching India's 1st Mini Truck - TATA ACE in May 2005. The company also launched the TATA Novus range of heavy vehicles in December 2005. The company also introduced two new model of Tata Indica, Turbo-diesel version and the extra fuel efficient torque advantage petrol engine model during the year. The styling and design of the new small car have been completed and prototypes are being tested within the plant. It will be a rear-engine, 4-5 seat, 4-door car with about a 30 horsepower engine. The car is expected to be launched in early 2008. 

In 2006-07, Tata Motors initiated steps for establishing a Small Car plant in Singur, West Bengal with a capacity of 250,000 vehicles per annum. The company remains committed to launching its new small car in the first half of 2008. The company also setting up a green-field manufacturing facility in Uttarakhand. This plant will have manufacturing capacity of 225,000 vehicles per annum.  

During the year, Tata Motors entered a 70:30 Joint Venture with Thonburi Automotive Assembly Plant Company, Thailand to manufacture pick-up trucks in Thailand. The joint venture will facilitate the company to address the Thailand market, which is the second largest pickup market in the world, as also address other potential markets in that region. The company also entered into a 51:49 Joint Venture with Marcopolo, Brazil to address high quality, mass manufacturing of buses in India. This strategy would enable the company to increase its market share in Indian bus market and also address a larger segment of the global bus market.  

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 India. TMLFSL will support and enhance the vehicle financing activities of Tata Motor finance. 

In October 2006, Tata Motors crossed the four million sales mark in India, since the first vehicle was rolled out in 1954. Inclusive of exports, the company had crossed the four million sales mark in March 2006. 

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., Italy for the formation of a Joint Venture at Ranjangaon in Maharashtra to produce cars both for Fiat and the company as well as engines and transmissions. The new plant will have production capacity of 100,000 cars and 200,000 engines and transmissions per annum.

Jaguar and Land Rover

During the year, the Company expressed its interest in participating in the Ford Motor Company’s intended sale of Jaguar and Land Rover on a going concern basis. Both brands are highly regarded and have a long heritage in their respective segments. Jaguar has been a prestigious maker of high performance passenger cars with a racing history, and Land Rover has always been the ‘Gold Standard’ for off road vehicles.

Several international private equity firms and one other Indian automotive manufacturer participated in the process. After a protracted negotiation through the year, Tata Motors was considered by Ford for focused discussion, with the full support of the unions and the work force. The two enterprises were formally transferred on June 2, 2008 at a signing ceremony at the Jaguar and Land Rover head quarters in West Midlands, when history was made and these two globally-renowned brands became Indian-owned.

In these brands, Tata Motors has acquired impressive engineering capabilities, substantial manufacturing facilities, (which reflect the major investments by both Ford and BMW in past years), and enormous goodwill amongst the dealer network and the Jaguar owners’ community. There is a need to introduce a greater number of attractive products for both brands, and to re-kindle Jaguar’s past image connected with its sports car heritage. Both brands have tremendous unfulfilled market potential and a significant global presence.

To fund the acquisition of Jaguar and Land Rover, Tata Motors is raising Rs.72000.000 millions on a rights basis and US$500/600 million through an international offering of equity and/or cost effective quasi equity instruments.

Looking ahead

The year ahead will be a year of major challenges. Higher fuel prices will negatively impact both commercial vehicles and passenger car sales.

There will be an enormous and unprecedented increase in material costs in steel, tyres, and the like, and there will be the impact of tighter money supply with higher interest rates. In addition, the Company will have to manage the completion of the Singur plant and introduction of the new NANO in the market. While dealing with these challenges in India, the Tata Motors’ operations will also have to absorb the cost of the JLR acquisition, and deal with its integration.

These challenges appear daunting, but to the people in Tata Motors, the year ahead will be no more daunting than the challenges they have faced in difficult years in the past. No words would ever adequately recognize the spirit, dedication and commitment of the people in Tata Motors who have faced adversity and major crises, delivered products which were not considered possible and repeatedly found solutions for situations which have thwarted many an organization. I therefore feel confident that the same spirit, dedication and commitment will enable them to face the challenges ahead and find solutions to ensure the sustainability of Tata Motors’ long term future growth and viability.

Despite the challenges mentioned, Tata Motors will have an exciting future. Apart from its own growth domestically in both the commercial vehicle and passenger car areas, for which it has ambitious plans, the high volumes of the NANO range will dramatically change Tata Motors’ market position, reach and visibility. Internationally the Jaguar and Land Rover brands will add global scale, profits and visibility to Tata Motors, enabling it to take its place in the global auto industry as a credible international automobile company.

Director’s Report

Operating Results and Profits

The year 2007-08 was a historic year for the Company marked with two significant events viz., the unveiling of Tata Nano - the world’s least expensive car and the signing of the definitive agreement with Ford Motor Company for purchase of Jaguar and Land Rover, which has since been completed on June 2, 2008.During the year, the Company recorded its highest ever sale of 5,85,649 vehicles and grew its turnover to Rs. 330940.000 millions to remain as India’s largest automobile company by revenue. The Company maintained its leadership position in the commercial vehicle segment and was among the top three players in the passenger vehicle segment, although it lost some market share. A number of new products were launched during the later half of the fiscal year which would help the Company regain its lost market share.

The Company’s margins were under pressure during the year due to rising interest rates, constraints in availability of vehicle financing from outside sources and unprecedented increase in prices of raw materials. The EBIDTA margin at 10.8% was lower than last year as increase in input costs could only be partially absorbed by the market. The Profit Before Tax at Rs. 25760.000 millions was 0.1% higher than last year. The Profit After Tax at Rs. 20290.000 millions, was 6.1% higher than last year.

Commercial Vehicles

The commercial vehicle industry (including exports) witnessed a moderation in growth in FY 07-08. The domestic market which accounts for nearly 90% of total commercial vehicle sales was impacted by reduction in economic activity, poor credit availability, hardening of interest rates and increase in fuel prices. It grew by 6.9% as compared to 33% growth in the previous year.

The Company reported a total sale of 3,52,785 commercial vehicles in the domestic and overseas markets representing a growth of 5.5% over last fiscal. However, the Company’s market share in the domestic commercial vehicle market declined by 1.3% to 62.7% due to non availability of certain components/ parts in the earlier part of the year and constraints in the availability of vehicle finance from banks and NBFCs. Though in-house vehicle financing was strengthened, the Company was unable to fully offset the decrease in credit availability from outside sources.

In the M and HCV segment, the Company revamped its commercial vehicles portfolio and introduced a wide range of new products such as multi axle and heavy duty trucks, tractor trailers and fully built solutions like tip trailers, customised factory built load bodies etc. in the second half of the year. These introductions helped the Company to gain market share in the tractor trailer and multi axle vehicle sub-segments and the full potential of these new products would be realized going forward. The Company also developed new products for the M and HCV passenger carrier sub-segment and displayed in the Auto Expo 2008, a 28 seater bus and an air conditioned low floor bus developed through its joint venture - Tata Marcopolo Motors Limited.

In the LCV segment, the Company introduced two new products – Magic and Winger, which hold a strong potential to shape the future of commercial passenger transportation in India. Magic is expected to emerge as a safe and comfortable mode of public transport in urban and rural areas. Alongwith the goods carrier version, Magic helped the Company to achieve a sale of over 1,00,000 vehicles on the Ace platform in a year for the first time since the inception of Ace. Winger, India’s only maxi van offering could become the preferred mode for intra-city and long distance passenger transportation in coming years.

The Company also unveiled the 1 Ton and CNG variant of Ace, Cargo Panel van, Xenon XT - a lifestyle pickup truck and Winger Executive office concept vehicle in the Auto Expo 2008 and commenced production of TATA Ace from its manufacturing facility at Uttarakhand. Though the Company’s market share in the LCV segment declined by 1.1% to 64.3%, introduction of new products would help the Company to grow its market share in the coming years.

The Company showcased its new range of tactical and armoured vehicles for military and para-military forces in the Defence Expo 2008. These include Tata Light Specialist Vehicle, Light Armoured Troop Carrier, Tata 8x8 HMV and the armoured Tata Safari.

The Company’s commercial vehicle exports grew by 11.8% to 39,850 vehicles. M and HCV exports accounting for 35% of the Company’s total commercial vehicle exports grew by 13%. In March’08, the Company 15 introduced Tata Xenon- 1 Ton pickup truck in Thailand through its subsidiary Tata Motors (Thailand) Limited This vehicle is assembled in Thailand and is distributed through a network of over 20 authorised dealers. The Company’s non-vehicular business recorded a 32% growth in revenues mainly due to growth in the spare parts business. The Company’s Commercial Vehicle Pune plant received Rajiv Gandhi National Quality Award for the year 2007.

Pasenger Vehicles

In a challenging year for the Company, sales declined by 5.4% after six consecutive years of growth. The Company recorded a sale of 2,32,864 vehicles (including 3,297 Fiat cars) in the domestic and overseas markets and continued to be amongst the top three players in the Indian passenger vehicle market with a market share of 14.2%. The market share declined from 16.6% in the previous year mainly on account of launch of several new introductions by competition (the Car Industry volumes, infact, declined by 4.4%, excluding new products introduced) and the delays in the introduction of the Company’s new Indica, which is now due for launch later this year. The Company’s passenger vehicle exports at 14,809 nos. declined by 16.9% over the previous year mainly due to softening of some key markets. However, the year 2007-08 was a milestone year for the car business as the one millionth passenger car rolled off from the Indica platform in the ninth year since commencement of production.

The TATA Indica sales at 1,35,642 nos. declined marginally over the previous year due to the car being in the mature phase of its life cycle and new launches by competition. Despite its maturity, the Indica remained the second largest selling car in the industry. During the year, the Company expanded the Indica range by introducing a new variant of the current Indica with dual airbags and ABS (Anti lock Braking System) and adding a DICOR (Direct Injection Common Rail) diesel engine variant. The Company displayed the next generation Indica in the Auto Expo 2008 which received an exciting response. The TATA Indigo range witnessed the introduction of the Indigo XL Classic variant and the Indigo CS (Compact Sedan). The Indigo CS is a sub 4 meter sedan with a foot print and price point of a large hatchback but the appeal of a sedan and has been received very well in the market post its launch in the last quarter of the year. The TATA Indigo range with a total sale of 31,416 nos. continued as the highest selling brand in the entry mid size segment in its sixth year of launch, despite new launches from competition, although it continued to decline in a slow segment.

The new products to be launched in the Indica and Indigo range have been delayed, whilst the Indigo CS and the XL Classic Variant were launched in the last quarter of the year, the new Indica is being introduced in FY 2008-09.

The TATA Safari and TATA Sumo recorded a sale of 47,700 nos. during the year. The Company expanded its Utility Vehicle range by launching a new 2.2L Safari DICOR, Sumo Victa DI and the Sumo Grande during the year. Safari, achieved its highest ever sale of 19,078 vehicles during the year. The Company’s sales of Fiat branded products increased by 148.3% to 3,297 vehicles aided by the launch of the facelifted Palio and later the multijet diesel version in the last quarter. In October’07, the Company concluded its joint venture with Fiat for the manufacture of passenger cars, engines and transmission. The venture has planned a total investment of over Rs 4,000 crores. The Company took the lead in supporting the Magic India Discovery Drive initiative of Ferrari alongwith other TATA companies and Fiat.

The Company continued to figure as the most trusted car company for the third year in succession in the Readers’ Digest survey. The Indica and the Sumo continue to stand out among the ‘Most Trusted Brands’ in the annual survey of the Economic Times Brand Equity. The Passenger Car Business Unit of the Company was conferred the ‘Handa Golden Key Award 2007’ for the ‘Best Value Engineering Organization’ by the Indian National Value Engineering Society.

Tata Nano

The Company unveiled the TATA Nano, the world’s least expensive car to an overwhelming response at the Auto Expo 2008 in New Delhi. Subsequently, the car was also unveiled at the Geneva Motor Show and received international acclaim. The development of the TATA Nano has given the Tata Group the 6th rank in the Business Week-BandG 2008 listing of the world’s 25 most innovative Companies. The construction of a manufacturing facility for the Tata Nano at Singur is in progress.

Acquisition of Jaguar and Land Rover

On June 2, 2008, Tata Motors completed the acquisition of businesses of Jaguar and Land Rover (part of Premier Automotive Group of Ford Motor Company) for US$ 2.3 billion (on a cash free, debt free basis). Both are iconic British brands purchased by Ford in 1989 and 2000 respectively. Out of the purchase consideration paid to Ford, Ford has contributed around US$ 600 million into the Jaguar Land Rover pension schemes (in UK).

Jaguar and Land Rover (JLR) are in the business of development, manufacture and sale of high end luxury cars and SUVs respectively. JLR has 3 manufacturing plants, 1 component manufacturing facility and 2 state of the art design and engineering centers in the UK, with 16,000 employees across the world, sales in more than 100 countries and have over 2,200 dealers. Their combined volume for the calendar year 2007 was around 288,000 vehicles. JLR achieved revenues of US$ 14.94 billion for the year ended December 31, 2007 with a PBIT (excluding special items) of US$ 650 million. For the quarter ended March 31, 2008, with the launch of the acclaimed XF model by Jaguar in January 2008, JLR business achieved revenues of US$ 4.15 billion (against revenues of US$ 3.54 billion for the corresponding period in 2007) and PBIT (excluding special items) of US$ 417 million (as against PBIT of US$ 289 million for the corresponding period in 2007).

Acquisition of JLR provides the Company with a strategic opportunity to acquire iconic brands with a great heritage and global presence, and increase the Company’s business diversity across markets and product segments.

Tata Motor Finance - Customer Financing Initiatives

Tata Motors Finance Limited and the Vehicle financing division of the Company which operate under the brand name “Tata Motorfinance (TMF)” financed 1,77,437 new vehicles, a growth of 7.3% over 1,65,376 in the previous year. With disbursals of Rs. 96200.000 millions, a growth of 2.2% over Rs. 94150.000 millions in the previous year, TMF emerged as the second largest commercial vehicle financer in the domestic market.

During the year, TMF extended support to the Company’s vehicle sales by financing 34% of the total domestic sales, compared to 31.4% 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 the automotive business. The extensive network of TMF will also complement the dealer network of vehicles sales, thus widening the reach of the Company. In the Commercial vehicle financing, TMF achieved a market share of 34%, with total disbursements at Rs. 63000.000 millions, recording a 2.9% growth and financed 1,07,668 units, an increase of 7.6% over the previous year. In the Passenger Vehicle financing segment, TMF achieved a market share of 32.5%, with total disbursements at Rs. 22280.000 millions, recording a 7.8% growth and financed 69,769 units, an increase of 6.9% over the previous year. With a view to focus on its core business of financing of TATA commercial and passenger vehicles, the Construction Equipment financing activity together with loan portfolio was sold by the Company in September, 2007.

Human Resources and Industrial Relations

During the year, the Company entered into a three year wage settlement with its unions at Jamshedpur and Pune, Passenger Car Business. The negotiation for wage settlement at Lucknow plant is underway and is expected to be signed shortly. Company’s cordial industrial relations were maintained at all of the Company’s plants and offices. There has been consistent improvement in productivity across all the plants.

The permanent employees’ strength of the Company as on March 31, 2008 was 23,230, while that of the Company’s subsidiaries was 9,972. Recruitments across all levels, extensive training and skill enhancement activities were carried out especially at the new locations, in line with the Company’s expansion and growth plans.

The Company was given the award of India’s Best Managed Company for 2007-08 in the automotive sector by Business Today based on a study conducted by Ernst and Young.

Finance: 

With significant increase in the Company’s capital expenditure programmes and the growing business requirement, the overall borrowings of the Company stood at Rs. 62805.200 millions at a Debt : Equity ratio of 0.80:1.

During the year, the Company successfully raised US$ 490 million via the issue of Convertible Alternate Reference Securities which is an innovative convertible instrument and would enable the Company to offer the investors a right to convert these into differential voting shares and/or other qualifying securities.

The Company has managed the currency risks on exports amidst sharp appreciation of the Rupee in 07-08. Due to the appreciation of the rupee, the net foreign exchange gain on revaluation of foreign currency borrowings, deposits and loans given stood at Rs. 1376.100 millions for FY 07-08 as against Rs. 652.100 millions in the previous year.

JLR is being acquired through special purpose vehicles incorporated in UK and Singapore and the acquisition cost is being financed upfront through a syndicated bridge loan facility of US$ 3 billion. The Company has issued a Corporate Guarantee in favour of its said UK SPV for this purpose. The repayment of the said facility is proposed to be undertaken through a long term funding plan involving, amongst others, a right issue of equity/equity related instrument to its shareholders, and issue of securities in the international market. The Company is undertaking a Postal Ballot to obtain the approval of the members to enable the Company to raise these resources, the details of which are included in the Corporate Governance Report.

Post the JLR announcement and subsequently, the Company’s rating for foreign currency borrowings was revised by Standard and Poor from BB +/Stable to BB/Negative and by Moodys’ from Ba1 to Ba2. For borrowing in local currency the rating was revised from AA+/Stable to AA Negative/Stable by Crisil and from LAA+/Stable to LAA/Negative by ICRA.

Information Technology and Research and Development Initiatives

The Company continued to strengthen the IT capabilities in all areas of its business which were used extensively in design, manufacuturing and customer interface functions. The Company used Digital Product Development, Digital Manufacturing Solutions and better integration with vendors in order to improve significantly its product development processes and capabilities. During the year the ERP system- SAP was also deployed in some of its subsidiaries and the Fiat joint venture. Significant improvements and use of analytics were also incorporated in the Company’s CRM/Dealer Management Systems.

The Company continued to pursue research and development initiatives in product development, environmental technology and vehicle safety areas. The Company widened the scope of its research and development activity from inhouse product and technology development to managing research and development process across various internal and external agencies, including its research and development centres in Korea, Spain and the United Kingdom, as well as at various aggregate parts suppliers and outsourcing partners. The Company’s reasearch and development initiatives include developing vehicles running on alternative fuels, including CNG, LPG and bio-diesel and pursuing alternative fuel options such as ethanol blending and development of vehicles fuelled by hydrogen. The Company is also pursuing various initiatives in engine management systems, vehicle network architecture, vehicle tracking and telematics.

Subsidiary and Associate Companies

Subsidiary Companies

For the Financial Year ended March 31, 2008, the Company’s subsidiaries, on an aggregate basis, have significantly improved on their financial performance. A brief profile of the subsidiary companies and their main financial parameters for 2007-08, are provided in the Annexure hereto. Brief details of the Company’s existing subsidiaries are given below. In respect of foreign subsidiary companies, figures in Rupees are converted from applicable respective foreign currencies at appropriate rates at the year end. Concorde Motors (India) Limited (CMIL), a 100% subsidiary of the Company engaged in sales and service of Tata and FIAT passenger cars recorded a turnover of Rs. 6252.000 millions (Previous year : Rs. 6232.700 millions) and Profit After Tax of Rs. 53.300 millions (Previous year: Rs. 117.600 millions). CMIL has declared a dividend of Rs. 2.50 per share for the FY 2007-08 (previous year Rs. 7.50 per share) and Rs. 7/- per share for the FY 2007-08 on the 7% Cumulative Redeemable Preference Shares.

HV Transmissions Limited (HVTL) and HV Axles Limited (HVAL), 85% subsidiary companies of the Company, are engaged in the business of manufacture of gear boxes and axles for Heavy and Medium commercial vehicles (M and HCV), with production facilities and infrastructure based at Jamshedpur. Major capacity expansion and modernisation initiatives have been undertaken at HVTL and HVAL to meet the growing demand for gear boxes and axles for MandHCVs over the years. Both HVTL and HVAL have manufactured new variants of gear boxes and axles during the year for application in the Company’s new products.

HVTL recorded a turnover of Rs.1919.800 millions (an increase of 9.39%), a PAT of Rs. 474.400 millions (an increase of 5.53%) and has declared a dividend of Rs.5/- per share for the FY 2007-08 (previous year Rs. 5/- per

share). HVAL recorded a turnover of Rs. 2032.400 millions (an increase of 3.34%), a PAT of Rs. 634.100 millions (an increase of 9.52%) and has declared a dividend of Rs. 5/- per share for the FY 2007-08 (previous year Rs. 5/- per share).

During the year, the Company divested 15% of its stake in HVTL and HVAL to Tata Capital Limited for an aggregate consideration of Rs. 164.25 crores and also sold the Intellectual Property Rights (IPR) for technology/design to HVTL and HVAL, which will facilitate these companies in pursuing their strategic growth through further development of technology and products for the Company and other customers in a focused manner.

Sheba Properties Limited is a 100% owned investment Company. The income of the Company was Rs. 213.700 millions (Previous Year: Rs. 199.700 millions) and Profit After Tax was Rs. 162.200 millions (Previous Year: Rs. 135.000 millions).

TAL Manufacturing Solutions Limited (TAL) is a 100% subsidiary of the Company engaged in the business of Machine tools, Equipments, Material handling systems and Fluid power solutions. During the year, it has ventured into the Aerospace business by signing an agreement with Boeing Corporation, USA for manufacturing structural components for Boeing’s 787 Dreamliner airplane program at a state of- the-art manufacturing facility being set-up in Nagpur, India. In one of its key achievement of the year,TAL has signed sales and service agreement with HELLER, Germany, a global renowned manufacturer of high-end Machining centers. During the year, TAL recorded a turnover of Rs. 220.58 crores (Previous Year: Rs. 1439.400 millions) and a Profit after Tax of Rs. 120.200 millions (Previous Year: Rs. 83.100 millions), a growth of 45%. TAL has wiped out its accumulated losses during the year and carried forward a profit of Rs. 10.500 millions.

Tata Daewoo Commercial Vehicle Company Limited (TDCV), Korea, a 100% subsidiary of the Company is the second largest manufacturer of heavy and medium commercial vehicles in Korea. During the year TDCV registered further growth both in the domestic market and exports. In volume terms, sales of 11,899 units in FY 07-08 were higher by 38% compared to that of 8,588 units in FY 06-07. This enabled TDCV to improve its market share from 24.3% to 32.3% in the HCV segment and from 28.2% to 34.8% in the MCV segment. TDCV exported 3,000 units of HCVs in FY 08 (2,715 units previous year) and continued to be the largest exporter from Korea in this segment.

TDCV recorded a turnover of Rs. 28650.200 millions which was higher by 45% compared to Rs. 22488.100 millions for the previous year. The Profit before Tax at Rs. 2120.300 millions registered an increase of 81% compared to Rs. 1333.100 millions. After providing for tax, the profit was Rs. 1531.100 millions against Rs. 974.600 millions in the previous year, an increase of 78%. In March 2008, TDCV paid an interim dividend at 20% on common shares. This was followed by a final dividend at 80% on common shares for FY 2007-08.

Tata Marcopolo Motors Limited (TMML) is engaged in the business of manufacture and sale of fully built buses and coaches in which the Company has a 51% holding with the balance 49% being held by Marcopolo S. A., Brazil. The Company started its commercial production from November 2007 and has sold 190 low entry CNG buses. TMML recorded a net turnover of Rs. 65.700 millions and loss after tax is Rs. 38.300 millions.

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, Japan. With the increase in economic activity especially in the infrastructure sector, Telcon recorded its best performance to date having sold 5360 machines (3674 machines in 2005-06) with a gross revenue of Rs.18141.600 Millions, a Profit After Tax of Rs.1838.600 Millions, i.e. an increase of 112% and a dividend of Rs.4/- per share (Previous Year: Rs.2.50 per share).  

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 and Design Services (E and 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 India and Thailand. Its customers are among the world?s premier automotive, aerospace and consumer durable manufacturers. 

INCAT - founded in 1989 and acquired by Tata Technologies in October 2005, is the world's leading independent provider of EandD, Product and 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 United States (Novi, Mich.), Germany (Stuttgart) and India (Pune). 

Tata Motors (SA) Proprietary Limited (TMSA), a joint venture company was incorporated during the year in which the Company holds 60% with the balance 40% being held by the Tata Africa Holdings (SA) (Private) Limited. TMSA has been formed for manufacturing and assembly operations of the Company’s Light and Heavy Commercial Vehicles and Passenger Cars in South Africa. TMSA is yet to start operations.

Tata Motors (Thailand) Limited (TMTL) is a 70:30 joint venture between the Company and Thonburi Automotive Assembly Plant Co., for manufacture, assembly and marketing pickup trucks. The joint venture enables the Company to address the ASEAN and Thailand markets, the later being the second largest pickup market in the world after the USA. While TMTL has begun setting up operations in the FY 2007-08, the manufacturing of vehicles began only during March ’08 with revenues from sales and other income at Thai Baht 7 million (equivalent to Rs. 9.000 millions) for the period ended March 31, 2008.

Tata Motors European Technical Centre plc. (TMETC), a 100% subsidiary of the Company is engaged in the business of design engineering and development of products for the automotive industry. Working synergistically with the Company, TMETC provides it with design engineering support and development services, complementing and strengthening the Company’s skill sets and providing European standards of delivery to the Company’s passenger vehicles. During the year ended March 31, 2008, TMETC earned gross revenues of Rs. 1279.500 millions (2006-07: Rs. 603.400 millions) and an operating profit of Rs. 114.300 millions

(2006-07: Rs. 70.800 millions).

Tata Motors Finance Limited (TMFL), a wholly owned subsidiary of the Company, is registered with RBI under Section 45-IA of the RBI Act 1934, as a Non- Banking Finance Company and has been classified as an “Asset Finance Company”. The name of TMFL was changed from “TML Financial Services Limited” to “Tata Motors Finance Limited” with effect from August 28, 2007. Total Income at Rs. 8369.500 millions during the year was 423% higher than in 2006-07 and Profit Before Tax at Rs. 502.600 millions was 150% more than the previous period. As commencement of the operations started from September 1, 2006, these figures are not comparable. With a view to focus on its core business of financing of Tata Commercial and Passenger Vehicles, TMFL transfered its activities pertaining to construction equipment financing and small and medium enterprises financing.

Tata Motors Insurance Broking and Advisory Services Limited (TMIBASL), [formerly known as Tata Motors Insurance Services Limited], a 100% subsidiary of the Company, proposes to undertake the business of direct insurance broking. TMIBASL has received a License from the Insurance Regulatory and Development Authority (IRDA) to act as a Direct Broker under the IRDA Act on May 13, 2008. In compliance with the regulations of the IRDA, its name was changed to “Tata Motors Insurance Broking and Advisory Services Limited” on April 30, 2008. Pending the issue of license by the IRDA and other formalities relating thereto, no business activity was carried out during the period from October 2005 to March 2008. For the year under review, TMIBASL earned revenues of Rs. 1.000 million (2006-07: Rs. 0.800 million) and recorded a Loss of Rs. 0.400 million (2006-07: loss of Rs. 1.600 millions).

Tata Technologies Limited (TTL), in which the Company has a 81.71% holding, provides through its operating companies, INCAT and Tata Technologies iKS, specialized Engineering and Design Services (E and D), Product Lifecycle Management (PLM) and product-centric IT services to leading global manufacturers. It responds to customers’ needs through its 13 subsidiary companies in three continents and through its three offshore development centers. Its customers are among the world’s premier automotive, aerospace and consumer durable manufacturers. The year marks an important milestone in the growth history of the Company with consolidated revenues crossing the Rs. 10000.000 millions threshold.

INCAT is the world’s leading independent provider of E and D, Product and Information Lifecycle Management, Enterprise Solutions and Plant Automation. 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 Systèms, UGS and Autodesk. With a combined global work force of more than 3,000 employees, INCAT has operations in the United States (Novi, Michigan), Germany (Stuttgart) and India (Pune).

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 1,00,000 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 13 subsidiary companies as at March 31, 2008. A few companies out of these subsidiaries are being wound-up, liquidated or merged as also various restructuring initiatives are being taken with the objective of bringing in operating 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. The consolidated revenue for the TTL Group was Rs. 11000.000 millions, an increase of 15% against Rs. 9570.000 millions in the previous year. The profit before tax was Rs. 510.000 millions as against Rs. 250.000 millions in the previous year, recording a growth of 104%. The profit after tax was Rs. 300.000 millions against Rs. 162.800 millions in the previous year.

Telco Construction Equipment Company Limited (Telcon) is engaged in the business of development, manufacture 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, Japan. With the increase in economic activity especially in the infrastructure sector, Telcon recorded its best performance to date having sold 7,698 machines (5,360 machines in 2006-07) with a gross revenue of Rs. 27350.000 millions (Previous Year: Rs. 18280.000 millions), a Profit After Tax of Rs. 32.400 millions (Previous Year: Rs. 1840.000 millions an increase of 76% and declared an interim dividend of Rs. 5/- per share and a final dividend of Rs. 3/- per share (Previous Year: Final dividend of Rs. 4/- per share). In April 2008, Telcon acquired two Spanish Companies, namely Serviplem S.A and Comoplesa Lebrero S.A by acquiring 79% and 60% shares of the respective companies.

TML Distribution Company Limited (TDCL), a 100% subsidiary of the Company incorporated on March 28, 2008 would be engaged in the business of dealing and providing logistics support for distribution of the Company’s products throughout the Country. TDCL is yet to start operations.

Associate Companies

As on March 31, 2008, the Company had the following major associate companies:

Automobile Corporation of Goa Limited (ACGL) in which the Company has a 37.79% shareholding, was incorporated in 1980, jointly with EDC Limited (a Government of Goa enterprise). ACGL is a listed company engaged in manufacturing sheet metal components, assemblies and bus coaches and is the largest supplier of buses (mainly for exports) to the Company.

Fiat India Automobiles Private Limited (FIAPL), is a Joint Venture with Fiat Auto S.p.A., Italy, to manufacture Fiat and Tata cars and powertrains at Ranjangaon. The new facility was inaugurated on April 2, 2008 and is one more step towards confirming the strong motivation and understanding between the partners towards developing new opportunities in India and abroad.

Hispano Carrocera S.A. (HC), a well-known Spanish bus manufacturing company, in which the Company had acquired a 21% stake in March 2005 was another major step in the Company’s plans for globalization. Hispano has two manufacturing units, one in Spain which caters to the European market and the other one in Casablanca which caters to the Moroccan and other North African markets. HC is present in both the ‘city bus’ and ‘coach market’ segment in both the geographies. HC reported a production of 375 buses during the fiscal year 2007 on a consolidated basis.

Nita Company Limited Bangladesh, in which the Company holds 40% equity, is engaged in the assembly of TATA vehicles for the Bangladesh market.

Tata AutoComp Systems Limited (TACO) is a holding company for promoting domestic and foreign joint ventures in auto components and systems and is also engaged in engineering services, supply chain management and after market operations for the auto industry. The Company’s shareholding in TACO is 50%.

Tata Cummins Limited (TCL), in which the Company has a 50% shareholding, with Cummins Engine Company Inc., USA holding the balance. TCL is engaged in the manufacture and sale of high horse power engines used in the Company’s range of M/HCVs.

Tata Precision Industries Private Limited Singapore, in which the Company has a 49.99% shareholding is engaged in the manufacture and sale of high precision tooling and equipment for the computer and electronics industry.

In accordance with the Statement of Accounting Standard on Consolidated Financial Statements (AS 21), Accounting Standard on Accounting for Investments in Associates (AS 23) and Accounting Standard on Accounting for Joint Ventures (AS 27), issued by the Institute of Chartered Accountants of India (ICAI), the above mentioned subsidiaries, associates and Joint Venture have been considered in the Consolidated Financial Statements of the Company. As may be seen from the consolidated statements, the consolidated revenue (net of excise) was Rs. 35651.800 millions, an increase of 10.2% as against Rs. 323612.000 millions in the previous year. The Profit Before Tax was Rs. 30862.900 millions as against Rs. 30880.000 millions in the previous year. The consolidated Profit After Tax, after considering an amount of Rs. 8515.400 millions (Previous Year: Rs. 8832.100 millions) towards current and deferred tax, adjustment for share of minority interest and profit in associate companies, was Rs. 21677.000 millions as against Rs. 21699.900 millions in the previous year.

On an application made by the Company under Section 212(8) of the Companies Act 1956, the Central Government exempted the Company from attaching a copy of the Balance Sheet and the Profit and Loss Account of the subsidiary companies and other documents from being attached to the Annual Report of the Company. Accordingly, the said documents are not being attached with the Balance Sheet of the Company. A gist of the financial performance of the subsidiary companies is contained in the report. The Annual Accounts of the subsidiary companies are open for inspection by any member/investor and the Company will make available these documents/details upon request by any Member of the Company or to any investor of its subsidiary companies who may be interested in obtaining the same. Further, the annual accounts of the subsidiary companies will also be kept for inspection by any investor at Registered Office of the Company and at the Head Offices of the subsidiary company concerned.

Energy, Technology and Foreign Exchange

Details of energy conservation and research and development activities undertaken by the Company along with the information in accordance with the provisions of Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are given as an Annexure to the Directors’ Report.

Directors

Mr Praveen P Kadle, who was the Executive Director (Finance and Corporate Affairs) of the Company, relinquished office on September 18, 2007, in view of his appointment as the Managing Director of Tata Capital Limited, a company promoted by Tata Sons Limited in the financial services space. Mr Kadle joined the Company as Sr. Vice President (Finance and Corporate Affairs) in October 1996 and was inducted on the Board of the Company in October 2001. Mr Kadle was also a Member of various Board Committees of the Company as also a representative of the Company on the Boards of some of the subsidiaries, associates and joint ventures. The Directors place on record their appreciation of the significant contributions made by Mr Kadle during his tenure as Executive Director (Finance and Corporate Affairs), the strategic direction he provided in the management of financial, IT and other Corporate matters and his role in the turnaround and growth of the Company.

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, Mr Ratan N Tata and Mr R Gopalakrishnan are liable to retire by rotation and are eligible for reappointment. Dr R A Mashelkar was appointed as an Additional Director, effective August 28, 2007. In accordance with the provisions of the Companies Act, 1956, Dr Mashelkar, in his capacity as an Additional Director, will cease to hold office at the forthcoming Annual General Meeting and is eligible for appointment.

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. 

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.

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. 

Management Discussion and Analysis

Business Overview

The Indian economy remained in high growth phase but witnessed moderation in GDP growth to 9% in FY 07-08 as compared to over 9% growth achieved in the previous two years. The commercial vehicle industry which grew by over 33% in FY 06-07 was impacted by moderation in economic growth as well as substantial reduction in vehicle financing and posted a 8.1% growth this fiscal. The passenger vehicle industry also witnessed a slowdown but managed to grow by 11.1% by increasing discounts on mature products, launching new models and due to reduction in excise duty announced by the government in Budget during February’08. Vehicle exports also grew, albeit at a slightly lower rate of 11.9% as compared to 14.8% witnessed in the previous year.

The Company recorded a sale of 5,85,649 vehicles, a growth of 0.9% over last year. Introduction of a new range of products and impressive performance of TATA Ace helped the Company to grow by 5.5% in commercial vehicles. In passenger vehicles, the Company witnessed a 5.4% decline due to ageing of some products and increase in the intensity of competition in the car segment. The Company’s vehicle exports grew by 2.2% to 54,659 vehicles during the year.

The industry performance during FY 07-08 and the Company’s share is given below:-

Category	Total Industry Sales (Nos.)			Total Industry Sales (Nos.)			Company Market Share (%)
	2007-08	2006-07	Growth	2007-08	2006-07	Growth	2007-08	2006-07
Commercial Vehicles*	558977	517327	8.1%	352785	334238	5.5%	63.2%	64.7%
Passenger Vehicles	1750347	1575235	11.1%	232864	246042	-5.4%	13.3%	15.6%
Total	2309324	2092562	10.4%	585649	580280	0.9%	25.4%	27.8%

* including Magic and Winger sales

Source: Society of Indian Automobile Manufacturers report and Company Analysis

Industry Structure and Developments

Commercial Vehicles

The domestic commercial vehicle industry grew by 6.9% as compared to over 33% growth achieved in the last fiscal. The commercial vehicle sales were impacted by slowdown in economic growth, poor credit availability for purchasing vehicles, hardening of interest rates and increase in fuel prices.

The industry performance during FY 07-08 and the Company’s share is given below:-

The domestic commercial vehicle industry grew by 6.9% as compared to over 33% growth achieved in the last fiscal. The commercial vehicle sales were impacted by slowdown in economic growth, poor credit availability for purchasing vehicles, hardening of interest rates and increase in fuel prices.

The industry performance during FY 07-08 and the Company’s share is given below:-

Domestic Category	Total Industry Sales (Nos.)			Total Industry Sales (Nos.)			Company Market Share (%)
	2007-08	2006-07	Growth	2007-08	2006-07	Growth	2007-08	2006-07
M and HCV	270994	275556	-1.7%	165619	172842	-4.2%	61.3%	62.9%
LCV*	228984	192234	19.1%	147316	125744	17.2%	64.3%	65.4%
Total CV	499978	467790	6.9%	312935	298586	4.8%	62.7%	64.0%

*including Magic and Winger sales

Source: Society of Indian Automobile Manufacturers report and Company Analysis

The Company achieved an all time high commercial vehicle sale of 3,12,935 vehicles, an increase of 4.8% over the previous year.

The M and HCV segment witnessed contraction due to adverse economic trend, lack of financing as mentioned above and due to depletion of one time demand created last year by strict enforcement of overloading restrictions. The Company, being the largest player in this segment, was impacted by these factors and constraints in supply of certain components/parts in the earlier part of the year. Strengthening of in-house vehicle financing by the Company could not fully offset the decrease in credit availability from outside sources. The Company launched many new M and HCV products during the year which would enable the Company to improve its position going forward. In the LCV segment, the continuing strong performance of the TATA Ace, launch of 1Ton and CNG versions in the goods carrier segment and introduction of two new passenger carrier products – Magic and Winger helped the Company to grow its sales by 17.2%.

The Company is enhancing its production capabilities at its 3 existing plants and is setting up capacities at Uttarakhand for Ace as also through joint ventures with international partners-Marcopolo SA, Brazil (new plant at Dharwad) and Thornburi (plant at Thailand). The sales and service network set-up, which is the largest in India today, is also been expanded in line with product requirements.

Passenger Vehicles

Amidst moderation in economic growth, a high interest rate regime and tightening of the liquidity position, the domestic passenger vehicle industry was able to grow by 11.3% to an all time high of over 1.5 million vehicles, albeit at a lower growth rate than 21% of the last fiscal. The Industry’s growth rate in fact fell to single digit in the last four months of the fiscal. Growth was primarily driven by new launches and discounts on existing volume models. Along with two wheelers, entry level cars (price point below Rs 0.300 million) declined by 2%. The luxury segment however doubled in size to over 5,000 vehicles and was immune to the slowing market conditions. Of over 90 models in the industry, the top 10 constitute 65% of the industry sales.

The industry performance during FY 07-08 and the Company’s share is given below:-

Domestic Category	Total Industry Sales (Nos.)			Total Industry Sales (Nos.)			Company Market Share (%)
	2007-08	2006-07	Growth	2007-08	2006-07	Growth	2007-08	2006-07
Small car (Mini + Compact)	928690	832172	11.6%	138916	146018	-4.9%	15.0	17.5
Entry Midsize car	97033	88056	10.2%	31439	34310	-8.4%	32.4	39.0
Utility Vehicle/SUV	237724	216960	9.6%	47700	47892	-0.4%	20.1	22.1
Total Passenger Vehicles #	1531929	1376783	11.3%	218055	228220	-4.5%	14.2	16.6

# including all segments * including Fiat branded cars

Source: Society of Indian Automobile Manufacturers report and Company Analysis

After six years of consecutive growth, the Company’s passenger vehicle sales decreased marginally by 4.5% to 2,18,055 vehicles (including 3,297 Fiat branded vehicles) and the Company had a 14.2% share in the passenger vehicle market between TATA and Fiat branded vehicles.

The number of models in the Small car segment nearly doubled with several new launches to a play of 14 models and grew by 11.6%. It continues to hold over 60% of share of the industry. All incumbent models which saw no product intervention registered decline in volume and market share, including the Indica, whose sales declined by 6.3%. The segment benefited from a reduction in excise duty by the Government from 16% to 12%. Indica’s market share at 14.6% was augmented by an increase in Fiat Palio’s share to 0.4% in the segment. The Company’s position weakened on account of delay in the actual launching of its new hatchback which is due to be introduced in the current financial year.

The Entry mid size segment which had seen decline for two years grew by 10.2%, aided by new launches by competition. The Indigo range held on to a 32.4% of the market and continued in a leadership position despite a decline in sales of 8.4%, which has been arrested in the last quarter.

The Utility Vehicle segment witnessed a 9.6% growth to 2,37,724 vehicles this year. The Company’s Utility Vehicle sales were flat at 47,700 vehicles and could have been higher but for constraints of initial production ramp up of the Sumo Grande. The Company ended with a 20.1% market share in the year. Safari sales grew by 20.6% to an all time high of 19,078 nos. during the year due to an encouraging response to the new Indigo CS.

The Company unveiled Tata Nano - the world’s least expensive car to the Indian and the International Audience in 2008. The production facility at Singur, West Bengal is under construction and is expected to commence commercial production in the last quarter of 2008. The Company will introduce several products from its own portfolio as well as from the Fiat stable in the coming years to address the market demand and consolidate its position.

Opportunities and Threats

Opportunities

Road development: Continued improvement in road infrastructure in coming years is expected to have a positive effect on automobile sales. The Golden Quadrilateral road project was 97% complete as on March Sixty-third annual report 2007-08

31, 2008. The North South East West (NSEW) road corridors are expected to be completed by December 2009. Rural connectivities are expected to correspondingly improve which would expand significantly the population/markets/supply sources participating in the overall economic growth. Improvement in road infrastructure would facilitate faster transportation of goods and passengers, and would in turn create demand for safer, reliable and faster vehicles. The Company is poised to benefit from the same as it has a wide range of goods and passenger transportation vehicles ranging from 0.7 Ton load carrier to large haulage tractors (49T) for goods movement, buses and coaches for public transportation and passenger cars and utility vehicles for personal transportation.

Car penetration in India: The reduction in excise duty on ‘Small cars’ announced in the Budget is expected to increase the penetration of cars in the country from 7 per 1,000 people as compared to a higher penetration level in developed and developing markets for example, Germany 550, France 495, Malaysia 253, South Korea 219, Brazil 96 and Thailand 51 cars per 1000 people. India and China (with a car penetration of 6 per 1,000 people) are perceived as highly attractive markets for the global automotive industry. Due to growth in urbanization and expansion of cities, the outlook for growth in passenger car sales remains positive.

Increase in income levels: A growing middle income level population, rise in their average income levels, moderation in income tax rates and the recently announced increase in compensation for government employees, all augur well for the automotive industry, both in terms of personal transportation requirements as well as freight movement.

Large two wheeler parc/market: India has a 60 million two wheeler parc and an annual sale of over Rs. 7.200 millions two wheelers. The Company believes that the gap between two wheeler prices and the current entry level car prices offer a huge opportunity for an affordable, safe and comfortable small car with appealing design and features. It is hoped that the TATA Nano would address this huge potential in demand.

International business: India continues to be a cost effective source for the automotive industry globally, both for vehicles and components. India’s manufacturing base will benefit from these scale economies and technology/quality improvements. The Company’s exports currently constitute 9.8% of the total sales value and has opportunities to increase significantly, particularly with the new and contemporary product offerings in commercial vehicles and passenger cars. The Company is also setting up / exploring manufacturing footprint overseas that would combine these advantages with local operations and sourcing in these markets.

Growing consumer culture: The demand for a better lifestyle has enhanced consumption levels and rapid growth in several areas like retail chains, cellular phones and cable and satellite television. The Company, with its wide portfolio is expected to benefit from improvement in lifestyle and higher aspiration levels in passenger cars and potential growth in freight movement.

Threats

Credit unavailability: Further tightening of liquidity position and reduction in exposure to vehicle financing by banks/NBFCs would have an adverse impact on the automotive industry. Though in-house vehicle financing has been strengthened by the Company, it would be a challenge for the Company to fully offset the decrease in credit availability from outside sources.

Interest rates hardening and other inflationary trends: Further hardening of consumer interest rates could have an adverse impact on the automotive industry. Increase in inflation could also have a negative impact on automobile sales in the domestic market.

Fuel Prices: The international crude prices witnessed steep increase from price levels of $62 per barrel at the beginning to $100-110 per barrel towards the end of the fiscal. Further hardening of fuel prices would adversely impact the automotive sales.

Input Costs: Prices of commodity items like steel, non-ferrous and precious metals and rubber witnessed an upward movement, which was partially offset by the Company’s cost reduction initiatives. The price of steel, in particular, has increased by 30% – 35% in the last 24 months and is expected to further increase significantly in the coming year. Whilst the Company continues to pursue cost reduction initiatives, increase in price of input materials could have a negative impact on the demand in the domestic market and/or could severely impact the Company’s profitability to the extent that the same are not absorbed by the market through price realisation.

Government Regulations: Stringent emission norms and safety regulations could bring new complexities and cost increases for automotive industry, impacting the Company’s business. WTO, Free Trade Agreements and other similar policies could make the market more competitive for local manufacturers.

Global Competition: India continues to be an attractive destination for the global automotive players. The global automotive manufacturers present in India have been expanding their product portfolio and enhancing their production capacities. To counter the threat of growing global competition, the Company has planned to bridge the quality gap between its products and foreign offerings while maintaining its low cost product development/sourcing advantage.

Growing consumer awareness: Growing awareness amongst consumers is driving up expectations from automobile companies in terms of providing world class features and technology for which adequate price realization is not always possible.

Growth in Mass Transit Systems: The domestic passenger vehicle demand could be impacted by the growth of road and rail based mass transit systems. However, the Company would benefit from the road based mass transit system due to its wide range of commercial passenger carriers.

Outlook

Fiscal 2007-08, the first year of 11th Five Year Plan saw a marginal fall in GDP growth rate of 9%. In view of the slow down in economy, increase in inflation, poor credit availability, hardening of interest rates, rise in prices of input materials, proposed increase in fuel prices and volatility in foreign exchange rates, the commercial and passenger vehicle industry has a challenging year ahead, with pressure on volumes and margins.

In this background, the Company has initiated various marketing activities to improve its market share in various segments. In commercial vehicles, the Company has planned growth by introducing new products in MandHCV and LCV segments. A wide range of products were introduced in the latter half of FY 07-08 and more would be introduced in the coming year. In passenger vehicles, the Company introduced new products in a few segments in FY 07-08 and has planned to introduce the next generation Indica and the Nano in this year. The Company has also planned to further strengthen the in-house vehicle financing to make up for the lack of finance from external sources. The Company has also planned various cost reduction measures to offset, atleast partially, the increase in price of input materials.

Financial Performance as a measure of Operational Performance

In a challenging environment, the Company has been able to marginally grow its revenues and profits. Whilst the Company’s profit after tax improved to Rs. 20289.200 millions from Rs. 19134.600 millions in the previous year, the margins were under pressure mainly due to the rising input costs and lower volume growth. The following table sets forth the breakup of the Company’s expenses as part of the net revenue.

	Percentage of Turnover
	31.03.2008	31.03.2007
Turnover net of excise duty	100	100
Expenditure:
Material (including change in stock and processing charges)	73.4	72.3
Employee cost	5.4	5.0
Manufacturing and other expenses (net)	10.5	10.7
Total Expenditure	89.2	87.9
Other Income	1.7	0.9
Profit before depreciation, Interest and Tax	12.4	13.0
Depreciation (including product development expenditure)	2.5	2.4
Interest and Discounting Charges (Net)	1.0	1.1
Profit before tax	9.0	9.4

Turnover, net of excise duties increased by 4.6% to another record high of Rs. 287308.200 millions from Rs. 274700.300 millions in FY 2006-07. The total number of vehicles sold during the year increased by 0.9% to Sixty-third annual report 2007-08

585,649 units from 580,280 units in FY 2006-07. The domestic volumes increased by 0.8% to 530,990 units from 526,806 units in FY 2006-07, while export volumes increased by 2.22% to 54,659 units in FY 2007-08 from 53,474 units in FY 2006-07.

Net Raw Material consumption inclusive of processing charges increased by 6.2% to Rs. 210281.000 millions in FY 2007-08, from Rs. 198490.400 millions in FY 2006-07. Material Cost as a % of net turnover has increased to 73.4% from 72.3% for the last year. This was largely a result of increase in prices of steel, aluminum, nickel, copper and natural rubber. However, the Company managed to lower the impact through its on going cost reduction programme with initiatives like global sourcing, vendor rationalization and value engineering.

Employee Cost increased by 12.9% during the year to Rs. 15445.700 millions from Rs. 13680.900 millions registered in the previous year mainly inline with trends in industry and economy. The manpower increased marginally to 23,230 from 22,349 with increases also in flexible manpower.

Manufacturing and Other Expenses increased by 2.4% to Rs. 30118.300 millions in FY 2007-08 from Rs. 29405.300 millions in FY 2006-07. These were 10.5% of net turnover for the year as compared to 10.7% for the previous year.

Profit before depreciation, interest and tax increased by 0.5% to Rs. 35755.000 millions from Rs. 35575.600 millions in FY 2006-07. The margin decreased to 12.4% from 13% in FY 2006-07.

Depreciation (including product development expenditure) for 2007-08 increased by 6.8% to Rs. 7166.600 millions from Rs. 6713.100 millions in FY 2006-07 on account of increase in fixed assets. It represents 2.5% of net turnover as compared to 2.4% for FY 2006-07.

Net interest cost decreased to Rs. 2823.700 millions in FY 2007-08 from Rs. 3130.700 millions in FY 2006-07. Despite increase in interest rates and increase in capital expenditure, the reduction was mainly on account of significant reduction in the Company’s vehicle financing portfolio (on account of securitisation), better working capital management, interest earnings and larger capitalisation of interest in line with the increase in capital expenditure.

Profit Before Tax (PBT) of the Company increased by 0.13% to Rs. 25764.700 millions from Rs. 25731.800 millions in FY 2006-07.

Profit After Tax (PAT) increased by 6.03% to Rs. 20289.200 millions from Rs. 19134.600 millions in FY 2006-07. This was mainly on account of a lower tax provision owing to the increase in spend on Research and Development and income from capital gains, which is subject to a lower tax rate. Basic Earning Per Share (EPS) increased by 5.79% to Rs. 526.400 millions as compared to Rs. 497.600 millions last year.

Balance Sheet size of the Company increased to Rs. 150957.400 millions in FY 2007-08 from Rs. 116657.200 millions in FY 2006-07. This increase is attributed to significant capital expenditure incurred by the Company on new products and programmes and strategic investments. As on March 31, 2008, the Ordinary Share Capital of the Company stood at Rs. 3855.400 millions as compared to Rs. 3854.100 millions as on March 31, 2007.

Gross debt (total of secured and unsecured loans) increased to Rs. 62805.200 millions as on March 31, 2008 as compared to Rs. 40091.400 millions as on March 31, 2007 as a consequence of higher capital expenditure and investments.

Net debt (gross debt reduced by available cash and bank balances and in mutual fund investments) stood at Rs. 36169.900 millions as on March 31, 2008 as compared to Rs. 354459.900 millions as on March 31, 2007.

Fixed Assets including Capital Work in Progress increased to Rs. 104522.700 millions in FY 2007-08 from Rs. 63945.800 millions in FY 2006-07.

Investments increased to Rs. 49102.700 millions in FY 2007-08 from Rs. 24770.000 millions in FY 2006-07. During the year, the Company continued to make additional long term and strategic investments. The Company further invested Rs. 6000.000 millions in its 100% subsidiary Tata Motors Finance Limited to further strengthen the vehicle financing activities. The Company also invested Rs. 6015.900 millions in Fiat India Automobiles Private Limited for manufacturing Fiat and Tata cars and Fiat powertrains. The Company invested Rs. 1795.000 millions in the rights issue of securities of Tata Steel Limited. The amount invested in various mutual funds as at March 31, 2008 was Rs. 7907.900 millions as against Rs. 519.900 millions as at March 31, 2007 representing surplus cash parked for future use.

Net Current Assets decreased to (Rs. 2728.500 millions) as at March 31, 2008 from Rs. 27840.500 millions as at

March 31, 2007. The Current assets, loans and advances have decreased by Rs. 1282.700 millions as compared

as at March 31, 2007. The increase in Sundry debtors and Cash and Bank balances, due to higher year end sale and parking of short funds pending utilization, respectively, has been offset by reduction in finance receivables. The Current liabilities have increased by Rs. 29286.300 millions due to higher volumes at the year end, change in the credit period and increase in the provision for premium for redemption of securities issued during the year.

The cash generated from operations before working capital changes and before considering the deployment in the vehicle financing business was Rs. 27601.500 millions as compared to Rs. 31525.300 millions in the previous year. After considering the impact of working capital changes and inflows on account of securitisation of financing loan portfolio (net of deployment), the net cash generated from operations was Rs. 61745.000 millions as compared to Rs. 22101.300 millions in the previous year.

Tata Motors introduces new Super Milo range of buses

v A fuel efficient range offering better operating economy

v Two variants - City and Highway, catering to different applications

Tata Motors is introducing a new range of Super Milo bus chassis across the country. As the name suggests, the Super Milo range delivers superior operating economies. The Super Milo range is available in two variants -- City and Highway -- each with customised parameters calibrated for their individual applications.

Both variants are powered by the BS II complaint 697 TCIC 130 HP engine. The higher power and better torque at a lower engine rpm -- 130 HP@2400 rpm and a torque of 410 Nm@1400-1700 rpm -- result in better pick up, and more mileage.

Mr. P M Telang, Tata Motors Executive Director – Commercial Vehicles Business Unit, said, “The Super Milo bus range is yet another tailor made product aimed at meeting changing customer requirements. In a scenario of rising fuel and input prices, this range offers better fuel efficiency, and lower maintenance costs, resulting in higher profitability to the operator. Customers can now choose between the City and Highway variants depending on their business needs, road conditions and terrain.”

Mr. R Pisharody, Tata Motors Vice President – Sales and Marketing, Commercial Vehicles Business Unit, said, “The Super Milo range of bus chassis offers the customer an attractive value proposition with its combination of unique features and superior technical specifications at an unbeatable price.”

Key features of the Super Milo bus range include:

v Exclusive drivelines (gear box and rear axle) for different applications - helps customers choose the relevant variant depending on the application.

v Radial tyres - for better comfort, safety and mileage.

v Organic clutch with booster assist - for longer clutch life, enhanced driver comfort, and reduced driver fatigue.

v Bigger air intake system - for proper combustion of fuel, resulting in better fuel mileage.

v Improved oil change period of 18,000 kms for city, and 36,000 kms for highway applications, resulting in lower maintenance costs.

These features offer 8% to 10% more fuel efficiency, along with a comfortable ride.

The Super Milo bus range comes with an engine warranty of 2 years or 2 lakh kilometres (whichever is earlier), and a chassis warranty of 1.5 years or 1.5 lakh kilometres (whichever is earlier). The range starts at Rs 0.850 million (ex-showroom Delhi), and is being launched nationwide.

About Tata Motors

Tata Motors is India's largest automobile company, with revenues of US$ 8.8 billion in 2007-08. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands. It also has a strategic alliance with Fiat. With over 4 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world's fourth largest truck manufacturer and the second largest bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America.

Trade Terms

v Atlantic Engineering Private Limited

v Auto Plastic Injection Moulders

v Auto Works

v Auto Brakes and Ancillaries Private Limited

v Auto Clutches

v Auto Feed

v Auto Fibre Craft

v Auto Knight Private Limited

v Auto Lab

v Auto Steel and Rubber Industries

v Auto Turn Industries

v Auto Window

v Autocomp Corporation

v Autocomps Engineering (Pune) Private Limited

v Autofeed

Fixed Assets

v Land

v Building

v Leasehold Land

v Railway Sidings

v Plant and Machinery

v Equipments

v Water System and Sanitation

v Furniture and Fixtures

v Office Appliances

v Plant taken on Lease

v IT Assets taken on Lease

v Leased Premises

v Technical Know-how

v Vehicles and Transport

v Capital Work-in-Progress

As Per Website Details

Press Releases

Tata Motors statement on raising of additional long term resources – Rs. 40000.000 millions The Board of Directors of Tata Motors, at its meeting held today, has in principle approved, subject to other approvals as may be required, raising of additional long term resources upto Rs.40000.000 millions crores by issue of appropriate securities in the foreign and/or domestic market in one or more tranches on terms to be decided by the Board/Committee of Directors in due course as also the consequent increase in the Authorised Capital of the Company.

The Company has major growth plans for expanding its position in the domestic and global markets in both the commercial vehicle and passenger vehicle business. This will be achieved by upgrading and enhancing the Company’s product portfolio, expanding manufacturing facilities in India and strategic acquisitions/alliances in India and abroad. Whilst this may require incurrence of expenditure for organic growth over the next 3-4 years, the acquisition opportunities will have to be financed upfront. The said funds are being raised to part-finance overall funding requirements to meet some of the strategic plans.

Released on : 04.07.2007

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 Institute of Cost and Works Accountants of India (ICWAI).

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 RandD efforts and iv) precise information on performance.

About Tata Motors

Tata Motors is India's largest automobile company, with revenues of US$ 7.2 billion in 2006-07. With over 4 million Tata vehicles plying in India, it is the leader in commercial vehicles and the second largest in passenger vehicles. It is also the world's fifth largest medium and heavy truck manufacturer and the second largest heavy bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, and South East Asia and in Australia. Tata Motors and Fiat Auto have formed an industrial joint venture in India to manufacture passenger cars, engines and transmissions for the Indian and overseas markets; Tata Motors also has an agreement with Fiat Auto to build a pick-up vehicle at Córdoba, Argentina. The company already distributes Fiat-branded cars in India. Tata Motors’ international footprint include Tata Daewoo Commercial Vehicle Company Limited in South Korea; Hispano Carrocera, a bus and coach manufacturer of Spain in which the company has a 21% stake; a joint venture with Marcopolo, the Brazil-based body-builder of buses and coaches; and a joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market pickup vehicles in Thailand. Tata Motors has research centres in India, the UK, and in its subsidiary and associate companies in South Korea and Spain.

Released on : 02.07.2007

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. MandHCV 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 MandHCV 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%.

Released on : 31.07.2007

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 and 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 Nepal. Tata Motors has also received an order from the Delhi Transport Corporation to supply 500 state-of-the-art low-floor CNG-propelled buses, which will begin to be delivered from the second half of the financial year.

The audited financial results for the quarter ended June 30, 2007, are enclosed.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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 :

The 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.

The 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. 42.30
UK Pound	1	Rs. 84.03
Euro	1	Rs. 66.42

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, they have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions