Tata Motors, on Friday, reported a consolidated net loss of Rs 2,505.25 crore for financial year ended March 31, 2009 as against a net profit of Rs 2,167.70 crore it posted in the previous fiscal.
The consolidated financials for the year under review also include results of the operation of Jaguar Land Rover (JLR) businesses the company bought in UK for the period June 2, 2008 to March 31, 2009 and Serviplem SA from April 2, 2008 to December 31, 2008, Comoplesa Lebrero SA from April 09, 2008 to December 31, 2008 and Miljobil Grenland AS for period October 06, 2008 to March 31, 2009.
The loss figure mentioned above, however, would have been higher but for other income of the company for year ended March 31, 2009. This figure includes a surplus of Rs 7,14.90 crore on sale of long term investments as compared with Rs 12.99 crore in same period last year.
Even as the company claimed that its consolidated financials are not comparable to 2007-08 on account of acquisition of Jaguar Land Rover in June 2008, however, the company’s consolidated net loss would have run up to Rs 6,997.93 crore but for change in accounting practice which were legally permissible.
Taking benefit of the change in Accounting Standard (AS) 11 Tata Motors said its loss before tax for year ended March 31, 2009 was lower by Rs 3,035.47 crore. In addition, the company has accounted the actuarial losses (net) of Rs 1,457.21 crore of pension plans of Jaguar Cars Ltd and Land Rover, UK have been accounted in “Reserves & Surplus” in accordance with IFRS principles and permitted by AS 21 in consolidated financials. Though this treatment of accounting is legally tenable, but actuarial losses significantly represent short term valuation impact on plan assets. Besides, earlier such differences were recognised in the Profit & Loss Account.
Spurt in revenue
Tata Motor’s consolidated gross revenue for the year stood at Rs 74,151.21 crore as against Rs 40,340.79 crore in the previous year. The huge jump was mainly because of acquisition of new companies.
Briefing reporters, Tata Motors Vice Chairman Ravikant said the global meltdown has impacted the auto industry worldwide, including JLR. Consequently, Land Rover sales fell considerably during 2008. However, Jaguar was able to maintain its sales level on the back of strong consumer response to the new XF sedan.