Jaguar Land Rover Automotive plc Annual Report 2016/17

Statement of directors’  
responsibilities in respect  
of the directors’ report and  
the financial statements  
The directors are responsible for 
preparing the Annual Report and  
the financial statements in accordance 
with applicable law and regulations.
Company law requires the directors 
to prepare financial statements for 
each financial year. Under that law the 
directors have elected to prepare the 
financial statements in accordance 
with International Financial Reporting 
Standards (IFRS) as adopted by the 
European Union. Under company law the 
directors must not approve the financial 
statements unless they are satisfied 
that they give a true and fair view of the 
state of affairs of the Group and of the 
profit or loss of the Group for that period.
In preparing these financial statements, 
International Accounting Standard 1 
requires that directors:
•   Properly select and apply  
accounting policies;
•  Present information, including 
accounting policies, in a manner 
that provides relevant, reliable, 
comparable and understandable 
information;
•  Provide additional disclosures 
when compliance with the specific 
requirements in IFRS is insufficient 
to enable users to understand the 
impact of particular transactions, 
other events and conditions on the 
Group’s financial position and financial 
performance; and
•   Make an assessment of the Group’s 
ability to continue as a going concern.
The directors are responsible for 
keeping adequate accounting records 
that are sufficient to show and explain 
the Group’s transactions and disclose 
with reasonable accuracy at any time 
the financial position of the Group and 
enable them to ensure that the financial 
statements comply with the Companies 
Act 2006. They are also responsible for 
safeguarding the assets of the Group 
and hence for taking reasonable steps 
for the prevention and detection of 
fraud and other irregularities.
The directors are responsible for the 
maintenance and integrity of the 
corporate and financial information 
included on the Group’s website. 
Legislation in the UK governing the 
preparation and dissemination of 
financial statements may differ from 
legislation in other jurisdictions. 
The directors confirm that, to the 
best of their knowledge, the financial 
statements, prepared in accordance 
with IFRS as adopted by the European 
Union, give a true and fair view of the 
assets, liabilities, financial position 
and profit or loss of the Group and 
the undertakings included in the 
consolidation taken as a whole.
Statement of disclosure  
of information to auditors 
In the case of each of the persons who 
are directors at the time when the 
report is approved under section 418 of 
the Companies Act, 2006, the following 
applies: so far as the directors are aware, 
there is no relevant audit information of 
which the Group’s auditor is unaware; 
and the directors have taken necessary 
actions in order to make themselves 
aware of any relevant audit information 
and to establish that the Group’s auditor 
is aware of that information.
Auditor 
At the completion of its audit tenure, 
Deloitte LLP will stand down as auditor. A 
formal selection process has commenced 
to identify a successor auditor and a 
resolution to appoint will be proposed at 
the 2017 Tata Motors Limited Annual 
General Meeting. 
Acknowledgement 
The directors wish to convey their 
appreciation to all employees for their 
continued commitment, effort and 
contribution in supporting the delivery 
of the Group’s record performance. The 
directors would also like to extend their 
thanks to all other key stakeholders for 
the continued support of the Group and 
their confidence in its management.
The Annual Report on pages 10 to 148 
was approved by the JLR plc Board and 
authorised for issue on 24 July 2017 
and signed on its behalf by: 
Professor Dr Ralf D. Speth 
Chief Executive Officer  
Jaguar Land Rover  
Automotive plc
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
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Company overview
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Governance
Financial statements

Investing in 
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Jaguar Land Rover Automotive plc  Annual Report 2016/17

INDEPENDENT 
AUDITOR’S 
REPORT TO 
THE MEMBERS 
OF JAGUAR 
LAND ROVER 
AUTOMOTIVE PLC
We have audited the financial 
statements of Jaguar Land Rover 
Automotive Plc for the year ended 
31 March 2017 which comprise the 
Consolidated Income Statement, 
the Consolidated Statement 
of Comprehensive Income, the 
Consolidated and Parent Company 
Balance Sheets, the Consolidated 
and Parent Company Statements of 
Changes in Equity, the Consolidated and 
Parent Company Cash Flow Statements 
and the related notes 1 to 56. The 
financial reporting framework that 
has been applied in their preparation 
is applicable law and International 
Financial Reporting Standards (IFRS) as 
adopted by the European Union and, as 
regards the Parent Company financial 
statements, as applied in accordance 
with the provisions of the Companies 
Act 2006.
This report is made solely to the 
company’s members, as a body, in 
accordance with Chapter 3 of Part 16 
of the Companies Act 2006. Our audit 
work has been undertaken so that we 
might state to the company’s members 
those matters we are required to state 
to them in an auditor’s report and for 
no other purpose. To the fullest extent 
permitted by law, we do not accept or 
assume responsibility to anyone other 
than the company and the company’s 
members as a body, for our audit work, 
for this report, or for the opinions we 
have formed.
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
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Respective responsibilities of 
directors and auditor
As explained more fully in the 
Directors’ Responsibilities Statement, 
the directors are responsible for the 
preparation of the financial statements 
and for being satisfied that they give 
a true and fair view. Our responsibility 
is to audit and express an opinion on 
the financial statements in accordance 
with applicable law and International 
Standards on Auditing (UK and Ireland).  
Those standards require us to comply 
with the Auditing Practices Board’s 
Ethical Standards for Auditors.
Scope of the audit of the 
financial statements
An audit involves obtaining evidence 
about the amounts and disclosures 
in the financial statements sufficient 
to give reasonable assurance that the 
financial statements are free from 
material misstatement, whether 
caused by fraud or error. This includes 
an assessment of: whether the 
accounting policies are appropriate to 
the Group’s and the parent company’s 
circumstances and have been 
consistently applied and adequately 
disclosed; the reasonableness of 
significant accounting estimates 
made by the directors; and the 
overall presentation of the financial 
statements. In addition, we read 
all the financial and non-financial 
information in the annual report to 
identify material inconsistencies with 
the audited financial statements and 
to identify any information that is 
apparently materially incorrect based 
on, or materially inconsistent with, 
the knowledge acquired by us in the 
course of performing the audit. If we 
become aware of any apparent material 
misstatements or inconsistencies we 
consider the implications for our report.
Opinion on financial 
statements
In our opinion:
•  the financial statements give a true 
and fair view of the state of the 
Group’s and of the parent company’s 
affairs as at 31 March 2017 and  
of the Group’s profit for the year  
then ended;
•  the Group financial statements have 
been properly prepared in accordance 
with IFRSs as adopted by the 
European Union;
•  the parent company financial 
statements have been properly 
prepared in accordance with IFRSs  
as adopted by the European Union  
and as applied in accordance with  
the provisions of the Companies  
Act 2006; and
•  the financial statements have been 
prepared in accordance with the 
requirements of the Companies  
Act 2006.
Opinion on other matters 
prescribed by the Companies 
Act 2006
In our opinion, based on the work 
undertaken in the course of the audit:
•  the information given in the Strategic 
Report and the Governance Report 
for the financial year for which the 
financial statements are prepared 
is consistent with the financial 
statements; and
•  the Strategic Report and the 
Governance Report have been 
prepared in accordance with 
applicable legal requirements.
In the light of the knowledge and 
understanding of the Company and its 
environment obtained in the course of 
the audit, we have not identified any 
material misstatements in the Strategic 
Report and the Governance Report. 
Matters on which we  
are required to report  
by exception
We have nothing to report in respect 
of the following matters where the 
Companies Act 2006 requires us to 
report to you if, in our opinion:
•  adequate accounting records have 
not been kept by the parent company, 
or returns adequate for our audit have 
not been received from branches not 
visited by us; or
•  the parent company financial 
statements are not in agreement with 
the accounting records and returns; or
•  certain disclosures of directors’ 
remuneration specified by law are not 
made; or
•  we have not received all the 
information and explanations we 
require for our audit.
 
Richard Knights  
(Senior statutory auditor) 
For and on behalf of  
Deloitte LLP  
Statutory Auditor  
Birmingham, UK 
24 July 2017
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
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Financial statements

 
Note
2017 
£m
2016 
£m
2015 
£m
Profit for the year
1,272
1,312
2,038
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation
32
(895)
489
(355)
Income tax related to items that will not be reclassified
14, 20
143
(113)
71
 
 
(752)
376
(284)
Items that may be reclassified subsequently to profit or loss:
(Loss)/gain on cash flow hedges (net)
35
(1,766)
55
(1,812)
Currency translation differences
34
(1)
21
Income tax related to items that may be reclassified
14, 20
329
(18)
363
 
 
(1,403)
36
(1,428)
Other comprehensive (expense)/income net of tax
 
(2,155)
412
(1,712)
Total comprehensive (expense)/income attributable to shareholders
 
(883)
1,724
326
CONSOLIDATED 
INCOME STATEMENT
For the year ended 31 March
For the year ended 31 March
CONSOLIDATED STATEMENT  
OF COMPREHENSIVE INCOME
 
Note
2017 
£m
2016*
Restated 
£m
2015*
Restated 
£m
Revenue
5
24,339
22,286
22,106
Material and other cost of sales excluding exceptional item
 
(15,071)
(13,405)
(13,347)
Exceptional item
4
151
(157)
–
Material and other cost of sales
6
(14,920)
(13,562)
(13,347)
Employee cost
7
(2,490)
(2,321)
(1,977)
Other expenses
10
(5,376)
(4,674)
(4,109)
Development costs capitalised 
11
1,426
1,242
1,158
Other income 
379
128
143
Depreciation and amortisation
(1,656)
(1,418)
(1,051)
Foreign exchange loss
(216)
(136)
(216)
Finance income
12
33
38
48
Finance expense (net)
12
(68)
(90)
(135)
Share of profit/(loss) of equity accounted investments
15
159
64
(6)
Profit before tax
13
1,610
1,557
2,614
Income tax excluding tax on exceptional item
 
(292)
(293)
(576)
Tax on exceptional item
(46)
48
–
Income tax expense
14
(338)
(245)
(576)
Profit for the year
 
1,272
1,312
2,038
* Comparatives have been restated due to the change in accounting policy for presentation of foreign exchange gains and losses as set out in note 2. 
Consolidated financial statements
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
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Financial statements

 
Note
2017 
£m
2016 
£m
2015 
£m
Non-current assets
Investments
15
475
339
280
Other financial assets
16
270
185
49
Property, plant and equipment
17
5,885
5,175
4,474
Intangible assets
18
6,167
5,497
4,952
Other non-current assets
19
80
45
26
Deferred tax assets
20
511
354
372
Total non-current assets
 
13,388
11,595
10,153
Current assets
Cash and cash equivalents
21
2,878
3,399
3,208
Short-term deposits 
2,609
1,252
1,055
Trade receivables
1,273
1,078
1,112
Other financial assets
16
218
137
214
Inventories
23
3,464
2,685
2,416
Other current assets
19
517
411
396
Current tax assets
3
10
9
Total current assets
 
10,962
8,972
8,410
Total assets
 
24,350
20,567
18,563
Current liabilities
Accounts payable
24
6,508
5,758
5,450
Short-term borrowings
25
179
116
156
Other financial liabilities
26
2,139
962
923
Provisions
27
644
555
485
Other current liabilities
28
490
427
374
Current tax liabilities
144
57
69
Total current liabilities
 
10,104
7,875
7,457
Non-current liabilities
Long-term borrowings
25
3,395
2,373
2,381
Other financial liabilities
26
1,399
817
842
Provisions
27
988
733
639
Retirement benefit obligation
32
1,461
567
887
Other non-current liabilities
28
362
204
118
Deferred tax liabilities
20
60
384
199
Total non-current liabilities
 
7,665
5,078
5,066
Total liabilities
 
17,769
12,953
12,523
Equity attributable to shareholders
Ordinary shares
29
1,501
1,501
1,501
Capital redemption reserve
29
167
167
167
Reserves
30
4,913
5,946
4,372
Equity attributable to shareholders
 
6,581
7,614
6,040
Total liabilities and equity 
 
24,350
20,567
18,563
These consolidated financial statements were approved by the JLR plc Board and authorised for issue on 24 July 2017.  
They were signed on its behalf by:
 
Professor Dr Ralf D. Speth 
Chief Executive Officer 
Company registered number: 06477691
As at 31 March
CONSOLIDATED   
BALANCE SHEET
Consolidated financial statements
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
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Ordinary 
share 
capital 
£m
Capital 
redemption 
reserve 
£m
Other 
reserves 
£m
Total 
equity 
£m
Balance at 1 April 2016
1,501
167
5,946
7,614
Profit for the year
–
–
1,272
1,272
Other comprehensive expense for the year
–
–
(2,155)
(2,155)
Total comprehensive expense
–
–
(883)
(883)
Dividend
–
–
(150)
(150)
Balance at 31 March 2017
1,501
167
4,913
6,581
Balance at 1 April 2015
1,501
167
4,372
6,040
Profit for the year
–
–
1,312
1,312
Other comprehensive income for the year
–
–
412
412
Total comprehensive income
–
–
1,724
1,724
Dividend
–
–
(150)
(150)
Balance at 31 March 2016
1,501
167
5,946
7,614
Balance at 1 April 2014
1,501
167
4,196
5,864
Profit for the year
–
–
2,038
2,038
Other comprehensive expense for the year
–
–
(1,712)
(1,712)
Total comprehensive income
–
–
326
326
Dividend
–
–
(150)
(150)
Balance at 31 March 2015
1,501
167
4,372
6,040
CONSOLIDATED STATEMENT  
OF CHANGES IN EQUITY
Consolidated financial statements
Jaguar Land Rover Automotive plc  
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For the year ended 31 March
CONSOLIDATED CASH  
FLOW STATEMENT
 
Note
2017 
£m
2016*
Restated 
£m
2015*
Restated 
£m
Cash flows generated from operating activities
Cash generated from operations
39
3,291
3,722
3,964
Dividends received
15
68
–
–
Income tax paid
(199)
(166)
(389)
Net cash generated from operating activities
 
3,160
3,556
3,575
Cash flows (used in)/generated from investing activities
Investment in equity accounted investments
15
(12)
–
(124)
Purchases of other investments
(1)
–
–
Investment in other restricted deposits
 
(32)
(30)
(12)
Redemption of other restricted deposits
 
51
27
19
Movements in other restricted deposits
19
(3)
7
Investment in short-term deposits
 
(5,097)
(4,147)
(2,807)
Redemption of short-term deposits
 
3,797
3,961
3,002
Movements in short-term deposits
(1,300)
(186)
195
Purchases of property, plant and equipment
39
(1,584)
(1,422)
(1,564)
Proceeds from sale of property, plant and equipment
1
–
3
Cash paid for intangible assets
39
(1,473)
(1,384)
(1,206)
Finance income received
33
40
48
Acquisition of subsidiary
37
–
(11)
–
Net cash used in investing activities
 
(4,317)
(2,966)
(2,641)
Cash flows generated from/(used in) financing activities
Finance expenses and fees paid
(150)
(142)
(230)
Proceeds from issuance of short-term borrowings
488
551
592
Repayment of short-term borrowings
(443)
(599)
(623)
Proceeds from issuance of long-term borrowings
857
–
1,032
Repayment of long-term borrowings
(57)
(58)
(653)
Payments of lease obligations
(4)
(5)
(6)
Dividends paid
 31
(150)
(150)
(150)
Net cash generated from/(used in) financing activities
 
541
(403)
(38)
Net (decrease)/increase in cash and cash equivalents
(616)
187
896
Cash and cash equivalents at beginning of year
21
3,399
3,208
2,260
Effect of foreign exchange on cash and cash equivalents
95
4
52
Cash and cash equivalents at end of year
21
2,878
3,399