INDEX

Accounting policies

Major launches during the year

Vista VX Tech, the

advanced and dynamic
premium hatchback,
launched
Nano Twist launched

6 new models in the cargo

segment
(Prima LX 4928.S SRT, Prima
LX 4928.S HRT, Prima LX
4028.S SR, Prima LX 4028.S
HR, Prima LX 2523.T and
Prima LX 3123.T)
4 new models in tippers
(Prima LX 2523.K, Prima LX
2528.K, Prima LX 3123.K and
Prima LX 3128.K), launched
Magic Iris CNG, Ace Dicor
(with Common Rail Engine)

Bolt,
a
premium
hatchback , displayed at
Auto Expo 2014

Aria, Vista and Safari

Storme
launched
in
Indonesia

Zest displayed at Auto

Expo 2014

Aria and Safari Storme

launched in Tanzania

Magic
Iris
Electric
displayed at the Auto
Expo 2014

Xenon Pickup launched in

Nepal

Tata Starbus Urban

FE-Parallel Hybrid Bus
displayed at Auto Expo
2014
Recovery
Vehicle,
showcased in DEFEXPO
Tata
Armoured
Personnel
Carrier
(APC) Left Hand Drive
Xenon Crew Cab 4X4
Luxury launched

TATA Xenon XT launched in

South Africa
Manza launched in Nigeria
Aria and Manza launched in
Prima KL3TXF 6X4 truck
tractor and Ultra 812 truck
revealed at Johannesburg
International Motor Show
2013
Aria showcased in South
Africa, Johannesburg
Motorshow Nano CNG eMax
launched

Training and Development:

The Company is committed to building the competencies of

its employees and improving their performance through
training and development.
The Company focus is on identifying gaps in its employees
competencies and preparing employees for changes in
competitive environments, as well as to meet organizational
challenges.
Some of the focus areas in training in the last year centered
on
leadership,
innovation
management
and
internationalization besides other training programs to drive
a change in the Companys employees outlook as it
continue to develop as a global competitor.
Developmental initiatives for the Companys senior
leadership were undertaken through international programs
at various premier institutions around the world.
Certain employees have also been selected for the Fulbright
fellowships for leadership in management. In addition, in
order to emphasize the sharing of skills across our locations

and functions extensive technical training programs were

organized in Pune, Jamshedpur and Lucknow.
The technical exposure was enhanced further through
international training and participation at international
seminars.
At Jamshedpur, Pune and Lucknow in India, the Company has
also established training divisions that impart basic skills in
various trades like milling, grinding and welding to its young
apprentices.
iTeach which was created as an innovative practice of
getting line managers to take ownership in sharing their
knowledge and experience gained a lot of traction. The
Company has switched to e-enabled learning through LMS
(Learning Management System). Programs like Autonova,
Project Leap were introduced.
The Company received the National Best Training
Establishment award from the Government of India for the
eighth time.

System followed for purchase of material

Tata Motors Sales, Distribution

and Support :

The sales and distribution network in India as of March 31,

2013, comprises 2,609 sales contact points for the
Passenger and Commercial Vehicle businesses.
The Company has deployed a Customer Relations
Management (CRM) system at all our dealerships and offices
across the country. The system is certified by Oracle as the
largest Siebel deployment in the automotive market. The
combined online CRM system supports users both within the
Company and among the distributors in India and abroad.
The Companys 100% subsidiary, TML Distribution Company
Ltd (TDCL), acts as a dedicated distribution and logistics
management company to support the sales and distribution
operations of vehicles in India.
TDCL provides distribution and logistics support for vehicles
manufactured at the Companys facilities. TDCL helps us
improve planning, inventory management, transport
management and timely delivery.

 The Company provides financing support through its wholly

owned subsidiary, Tata Motors Finance Ltd (TMFL). (Refer
discussion on TMFL).
In addition to dealer service workshops, the Company uses a
network of service centers on highways and a toll-free
customer assistance center to provide 24-hour on-road
maintenance (including replacement of parts) to vehicle
owners.
The Company believes that the reach of the sales, service
and maintenance network, provides us with a significant
advantage over the competitors.
Jaguar Land Rovers Sales & Distribution: JLR markets
products in 178 countries, through a global network of 17
national sales companies (NSCs), 85 importers, 62 export
partners and 2,485 franchise sales dealers, of which 689 are
dealers for both Jaguar and Land Rover.
JLR has established robust business processes and systems
to ensure that its production plans meet anticipated retail
sales demand and to enable the active management of its
inventory of finished vehicles and dealer inventory
throughout its network.

Future plans
More emphasis will be laid on the design, performance and
styling of our products such that they meet the expectations
of customers.

As a precursor to future launches, the Company would be

shortly unveiling improved and enhanced vehicles across its
key brands.

The Company continues its effort on developing new

products and technologies to meet growing customer
expectations. The existing products will be refreshed at
regular intervals to suit upcoming trends. In the long term,

the Company is focusing on improving driving comfort, fuel

efficiency, performance and aesthetics.
Initiatives on technological changes with an emphasis on
customer orientation will be sharpened.
The Company, in its constant endeavor to improve processes
in design and planning in the manufacturing domain, has
implemented integration of digital product data into digital
manufacturing planning system.
The Company plans to export various vehicles in future
considering socio-political and macro economic conditions
worldwide.
The Company focused on introducing various products in
new / existing markets of Indonesia, Myanmar, Bangladesh,
Saudi Arabia and Tanzania.
JLR aims to establish new manufacturing facilities, assembly
points and suppliers in selected markets. In China, joint
venture with Cherry Automobiles has been formed.
JLR aims to increase its marketing and dealer network in
emerging markets. In China, the presence in this key market
and plans to increase the network of sales dealerships across
the country.
The Defence business has increasing relevance in
international markets, as well and the Company is now
focusing on developing this business beyond India.
For providing prompt service to the customer, development
of enterprise level vehicle diagnostics system for achieving
speedy diagnostics of complex electronics of modern
vehicles has been underway.

Marketing strategies
The Company has designed its products to suit the
requirements of the Indian market based on specific
customer needs such as safety, driving comfort, fuel
efficiency and durability. The Company believes that its
vehicles are suited to the general conditions of Indian roads,
driving habits and the local climate.
The Company also offers a wide range of optional
configurations to meet the specific needs of its customers.
The Company is developing products to strengthen its
product portfolio in order to meet customer expectations.

 It has also stepped up significantly its Office of the

Customer initiative as well as its branch network and
infrastructure.
The Company is pursuing various quality improvement
programmes, both internally and its suppliers operations, in
an effort to enhance customer satisfaction and reduce future
warranty costs.
Improve the relationship with the customer the experience
the customer has with the Company at each touch point
from sale to service and replacement sales experiences.
This would include improving the physical look of the setup,
setting up right processes and forums for speedy resolution
of customer issues.
In order to remain relevant to our customers, we launched
HORIZONEXT. An aggressive customer-focused strategy,
HORIZONEXT aims to provide the best customer experience
o From best vehicle experience to superlative purchase
experience
o Technology-intense after-market service support

In addition to improving our operational efficiencies, we

enhanced customer engagement through focused marketing
campaigns and refreshing showroom decor and the sales
experience.

 In our Passenger Vehicle segment attractive offers of select

models such as the Manza Club Class and the Indica eV2
drove increased mindshare among customers.
Revamped the Concorde showrooms in Prabhadevi, Mumbai,
and South Extension, New Delhi and Pune to engage our
customers and improve their purchase experience.
The Company introduced a host of new products on existing
and new platforms in existing and new markets and
showcased its vehicles in major auto shows in strategically
important markets.
With the objective of increasing its marketing and dealer
networks in emerging markets, Jaguar Land Rover
established a National Sales company in China in 2010 to
expand its presence and has plans to increase its network of
dealers in China. Similar plans of increasing its dealer
network are also underway in India.

Manpower Planning

In line with the Human Resource strategy, the Company, in

turn, has implemented various initiatives in order to build
organizational capability that will enable the Company to
sustain competitiveness in the global market place. The

focus is to attract talent, retain the better and advance the

best. Some of the initiatives to meet this objective include:
Extensive process mapping exercise to benchmark and align
the human resource processes with global best practices.
Introduction of a globally benchmarked employee
engagement programme.
Succession planning through identification of second level of
managers for all units, locations, functions.
Restructuring the top level organization and creation of new
verticals for greater functional focus and moving towards
creating a matrix organization.
Creation of a powerful employer brand to attract talent Lead the Future has become the Companys Employee
Value Proposition statement.
Driving cultural transformation - The Company has reframed
the mission, vision, values and culture of the organization
and introduced the concept of ACES - Accountability,
Customer & Product focus, Excellence and Speed.
Extensive brand building initiatives at university campuses
to increase recruiting from premium universities.
JLR launched a new Team Talk Online portal to its
production workers, which provides them with business
updates alongside information on employee benefits,
training and development.

Employee appraisals and welfare

Implementation of a Fast Track Selection Scheme, which is
a system for identifying potential talent in the areas of
general, commercial and operations management and

offering them opportunities for growth within the

organization.
The Companys human resources team has been invited to
replicate this system in other Tata Companies.
The Company Talent Management Scheme which includes
the identification of high performers and high potentials
through various routes such as our Performance
Management System and Development Centers. Subsequent
to the identification process, we provide them with
challenging assignments for faster development.
Introduction of performance rating based salary review and
quality linked variable payment for supervisory category of
employees.
The variability in wage settlements was built in by
introducing vehicles and profit linked payment scheme
based on the index of various parameters such as quality,
productivity, operating profit and individuals performance
and attendance.
The business has continued its programme of proactive
health promotion events for employees and has launched
several Wellbeing Centres to aid in worker assessment,
rehabilitation and piloted electronic WellPoint kiosks to
allow employees to monitor their own health data and seek
further advice.
At Jaguar Land Rover, the health and safety management
system is based on the UK Health and Safety Executives
guidance for Health and Safety Management
The Company launched health brand logo HealthPlus Because you matter! to drive employee health initiatives.
Series of initiatives like awareness sessions, mailers, etc.
have been conducted under this initiative.

 Employee benefit scemes:

Gratuity
The Company has an obligation towards gratuity, a
defined benefit retirement plan covering eligible
employees. The plan provides for a lump sum payment
to vested employees at retirement, death while in
employment or on termination of employment of an
amount equivalent to 15 to 30 days salary payable for
each completed year of service.
Superannuation
The Company has two superannuation plans, a defined
benefit plan and a defined contribution plan. An eligible
employee on April 1,1996 could elect to be a member
of either plan. Employees who are members of these
plans are entitled to benefits depending on the years of
service and salary drawn.
The Company maintains a separate irrevocable trust for
employees covered and entitled to benefits. The
Company contributes up to 15% of the eligible
employees salary to the trust every year. The Company
recognizes such contributions as an expense when
incurred. The Company has no further obligation
beyond this contribution.
Bhavishya Kalyan Yojana (BKY)
Bhavishya Kalyan Yojana is an unfunded defined benefit
plan for employees of the Company. The benefits of the
plan include pension in certain case, payable up to the
date of normal superannuation had the employee been
in service, to an eligible employee at the time of death
or permanent disablement, while in service, either as a
result of an injury or as certified by the appropriate
authority. The monthly payment to dependents of the
deceased / disabled employee under the plan equals

50% of the salary drawn at the time of death or

accident or a specified amount, whichever is higher.
Post-retirement medicare scheme
Under this scheme, employees of the Company receive
medical benefits subject to certain limits of amount,
periods after retirement and types of benefits,
depending on their grade and location at the time of
retirement. Employees separated from the Company as
part of Early Separation Scheme, on medical grounds or
due to permanent disablement are also covered under
the scheme.
Provident fund
The eligible employees of the Company are entitled to
receive benefits in respect of provident fund, a defined
contribution plan, in which both employees and the
Company make monthly contributions at a specified
percentage of the covered employees salary (currently
12% of employees salary). The contributions as
specified under the law are made to the provident fund
and pension fund set up as irrevocable trust by the
Company .
Severance indemnity
Tata Daewoo Commercial Vehicle Co. Ltd., and Tata
Daewoo Commercial Vehicle Sales and Distribution Co.
Ltd., subsidiary companies incorporated in Korea has an
obligation towards severance indemnity, a defined
benefit retirement plan, covering eligible employees.
The plan provides for a lump sum payment to all
employees with more than one year of employment
equivalent to 30 days salary payable for each
completed year of service.
Post-retirement medicare scheme

Under this scheme, employees of the Company and

some of its subsidiaries get medical benefits subject to
certain limits of amount, periods after retirement and
types of benefits, depending on their grade and location
at the time of retirement. Employees separated from
the Company as part of Early Separation Scheme, on
medical grounds or due to permanent disablement are
also covered under the scheme.
Provident fund and family pension
The eligible employees of the Company and some of its
subsidiaries are entitled to receive benefits in respect of
provident fund, a defined contribution plan, in which
both employees and the company/subsidiaries make
monthly/annual contributions at a specified percentage
of the covered employees salary (currently 12% of
employees salary). The contributions, as specified
under the law, are made to the provident fund and
pension fund set up as irrevocable trust by the
Company and its subsidiaries or to respective Regional
Provident Fund Commissioner and the Central Provident
Fund under the State Pension scheme.
Compensated absences
The Company and some of its subsidiaries provides for
the encashment of leave or leave with pay subject to
certain rules. The employees are entitled to accumulate
leave subject to certain limits, for future encashment.
The liability is provided based on the number of days of
unutilized leave at each balance sheet date on basis of
an independent actuarial valuation as at Balance Sheet
date.

Financial highlights of TATA Motors

Summarized statement of profit and loss (TATA motors group)

Financial Performance (TATA

Motors)