Jaguar Land Rover Automotive plc Annual Report 2016/17


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50 DIVIDENDS
Year ended 31 March
2017 
£m
2016 
£m
2015 
£m
Dividend proposed for the previous year paid during the year of £0.10 (2016, 2015: £0.10) per 
ordinary share
150 
150
150
Amounts recognised as distributions to equity holders during the year
150 
150
150
Proposed dividend for the year of £0.10 (2016, 2015: £0.10) per ordinary share
150 
150
150
In May 2017, the Company proposed an ordinary dividend of £150 million to its immediate parent TML Holdings Pte. Ltd. 
(Singapore). £60 million of this amount was paid in June 2017.
51  COMMITMENTS AND CONTINGENCIES
The Company had no commitments or contingencies at 31 March 2017, 2016 or 2015.
52  CAPITAL MANAGEMENT
The Company’s objectives when managing capital are to ensure the going concern operation of all subsidiary companies within 
the Group and to maintain an efficient capital structure to support ongoing and future operations of the Group and to meet 
shareholder expectations. 
The Company issues debt, primarily in the form of bonds, to meet anticipated funding requirements and maintain sufficient liquidity. 
The Company also maintains certain undrawn committed credit facilities to provide additional liquidity. These borrowings, together 
with cash generated from operations, are loaned internally or contributed as equity to certain subsidiaries as required. Surplus cash 
in subsidiaries is pooled (where practicable) and invested to satisfy security, liquidity and yield requirements. 
The capital structure and funding requirements are regularly monitored by the JLR plc Board to ensure sufficient liquidity is 
maintained by the Group. All debt issuance and capital distributions are approved by the JLR plc Board. In addition, covenants 
(such as Adjusted EBITDA to interest ratios) related to the Company’s financing arrangements are regularly monitored and 
compliance is certified annually.
As at 31 March
2017 
£m
2016 
£m
2015 
£m
Long-term borrowings
3,395
2,373 
2,381 
Total debt
3,395
2,373 
2,381 
Equity
1,988
1,836 
1,686 
Total capital
5,383
4,209 
4,067 
NOTES TO THE PARENT COMPANY  
FINANCIAL STATEMENTS 
(CONTINUED)
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
143
Company overview
Strategic report
Governance
Financial statements

NOTES TO THE PARENT COMPANY  
FINANCIAL STATEMENTS 
(CONTINUED)
53  FINANCIAL INSTRUMENTS
This section gives an overview of the significance of financial instruments for the Company and provides additional information 
on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on 
which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument, 
are disclosed in note 2 to the consolidated financial statements.
(A) FINANCIAL ASSETS AND LIABILITIES
The following table presents the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2017:
Financial assets
Loans and 
receivables 
£m
Fair value 
through 
profit and 
loss 
£m
Total 
carrying 
value 
£m
Total  
fair value 
£m
Other financial assets – current
365

365
365
Other financial assets – non-current
3,423

3,423
3,423
Total financial assets
3,788

3,788
3,788
Financial liabilities
Loans and 
receivables 
£m
Fair value 
through 
profit and 
loss 
£m
Total 
carrying 
value 
£m
Total  
fair value 
£m
Other financial liabilities – current
29

29
29
Long-term borrowings
3,395

3,395
3,489
Total financial liabilities
3,424

3,424
3,518
The following table presents the carrying amounts and fair value of each category of financial assets and liabilities as at 31 March 2016:
Financial assets
Loans and 
receivables 
£m
Fair value 
through 
profit and 
loss 
£m
Total 
carrying 
value 
£m
Total  
fair value 
£m
Other financial assets – current
211

211
211
Other financial assets – non-current
2,392

2,392
2,392
Total financial assets
2,603

2,603
2,603
Financial liabilities
Loans and 
receivables 
£m
Fair value 
through 
profit and 
loss 
£m
Total 
carrying 
value 
£m
Total  
fair value 
£m
Other financial liabilities – current
26

26
26
Long-term borrowings
2,373

2,373
2,398
Total financial liabilities
2,399

2,399
2,424
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
144
Company overview
Strategic report
Governance
Financial statements

The following table presents the carrying amounts and fair value of each category of financial assets and liabilities as at  
31 March 2015:
Financial assets
Loans and 
receivables 
£m
Fair value 
through 
profit and 
loss 
£m
Total 
carrying 
value 
£m
Total  
fair value 
£m
Other financial assets – current
66

66
66
Other financial assets – non-current
2,404

2,404
2,404
Total financial assets
2,470

2,470
2,470
Financial liabilities
Loans and 
receivables 
£m
Fair value 
through 
profit and 
loss 
£m
Total 
carrying 
value 
£m
Total  
fair value 
£m
Other financial liabilities – current
31

31
31
Long-term borrowings
2,381

2,381
2,459
Total financial liabilities
2,412

2,412
2,490
Fair value hierarchy
Financial instruments held at fair value are required to be measured by reference to the following levels:
•  Quoted prices in an active market (Level 1): This level of hierarchy includes financial instruments that are measured by 
reference to quoted prices (unadjusted) in active markets for identical assets or liabilities; 
•  Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities measured 
using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as 
prices) or indirectly (i.e. derived from prices); and
•  Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and 
liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are 
determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from 
observable current market transactions in the same instrument nor are they based on available market data. 
The long-term unsecured listed bonds are held at amortised cost. Their fair value (disclosed above) is determined using Level 1 
valuation techniques, based on the closing price as at 31 March 2017 on the EURO MTF market. There has been no change in the 
valuation techniques adopted or any transfers between fair value levels in either current or prior periods as presented.
Fair values of cash and cash equivalents, short-term deposits, trade receivables and payables, short-term borrowings and other 
financial assets and liabilities (current and non-current excluding derivatives) are assumed to approximate to cost due to the 
short-term maturing of the instruments and as the impact of discounting is not significant.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent 
limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented 
above are not necessarily indicative of all the amounts that the Company could have realised in a sales transaction as of 
respective dates. The estimated fair value amounts as of 31 March 2017, 2016 and 2015 have been measured as of the 
respective dates. As such, the fair values of these financial instruments subsequent to the respective reporting dates may be 
different than the amounts reported at each year end.
53  FINANCIAL INSTRUMENTS (CONTINUED)
NOTES TO THE PARENT COMPANY  
FINANCIAL STATEMENTS 
(CONTINUED)
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
145
Company overview
Strategic report
Governance
Financial statements

53  FINANCIAL INSTRUMENTS (CONTINUED)
NOTES TO THE PARENT COMPANY  
FINANCIAL STATEMENTS 
(CONTINUED)
(B) FINANCIAL RISK MANAGEMENT
The Company is exposed to foreign currency exchange rate, commodity price, interest rate, liquidity and credit risks. The 
management of foreign currency exchange rate risk is discussed in the Strategic report. The Company has a risk management 
framework in place that monitors all of these risks as discussed below. This framework is approved by the JLR plc Board.
(C) FOREIGN CURRENCY EXCHANGE RATE RISK
The fluctuation in foreign currency exchange rates may have potential impact on the income statement and statement of 
changes in equity, where any transaction references more than one currency or where assets/liabilities are denominated in a 
currency other than the functional currency of the Company. 
As at 31 March 2017, 2016 and 2015, there are no designated cash flow hedges.
The Company’s operations are subject to risks arising from fluctuations in exchange rates. The risks primarily relate to 
fluctuations in the GBP:US Dollar rate as the Company has US Dollar assets and liabilities and a GBP functional currency.  
The following analysis has been calculated based on the gross exposure as of the parent company balance sheet date which 
could affect the income statement.
The following table sets forth information relating to foreign currency exposure as at 31 March 2017:
US Dollar 
£m
Euro 
£m
Financial assets
1,783
560
Financial liabilities
(1,783)
(560)
Net exposure asset


A 10 per cent appreciation/depreciation of the US Dollar and Euro would result in an increase/decrease in the Company’s net 
profit before tax and net assets by approximately £nil and £nil respectively.
The following table sets forth information relating to foreign currency exposure as at 31 March 2016:
US Dollar 
£m
Euro 
£m
Financial assets
1,610

Financial liabilities
(1,609)

Net exposure asset
1

A 10 per cent appreciation/depreciation of the US Dollar would result in an increase/decrease in the Company’s net profit before 
tax and net assets by approximately £nil.
The following table sets forth information relating to foreign currency exposure as at 31 March 2015:
US Dollar 
£m
Euro 
£m
Financial assets
1,565

Financial liabilities
(1,564)

Net exposure asset
1

A 10 per cent appreciation/depreciation of the US Dollar would result in an increase/decrease in the Company’s net profit before 
tax and net assets by approximately £nil.
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
146
Company overview
Strategic report
Governance
Financial statements

(D) INTEREST RATE RISK
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates.
The Company is presently funded with long-term fixed interest rate bonds. The Company is subject to variable interest rates on 
certain other debt obligations.
As at 31 March 2017, net financial assets of £335 million (2016: £34 million, 2015: £34 million) were subject to the variable 
interest rate. An increase/decrease of 100 basis points in interest rates at the balance sheet date would result in an impact of  
£3 million (2016, 2015: £nil). 
The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also 
assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at 
that date. The year-end balances are not necessarily representative of the average debt outstanding during the year.
(E) LIQUIDITY RISK
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. 
The Company’s policy on liquidity risk is to ensure that sufficient borrowing facilities are available to fund ongoing operations 
without the need to carry significant net debt over the medium term. The quantum of committed borrowing facilities available 
to the Company is reviewed regularly and is designed to exceed forecast peak gross debt levels. 
The following are the undiscounted contractual maturities of financial liabilities, including estimated interest payments: 
As at 31 March 2017
Carrying 
amount 
£m
Contractual 
cash flows 
£m
1 year or less 
£m
1 to <2 years 
£m
2 to <5 years 
£m
5 years  
and over 
£m
Financial liabilities
Long-term borrowings
3,395
3,982
 133
 687
1,748
1,414
Other financial liabilities 
29
35
12
10
13 
– 
Total contractual maturities
3,424
4,017
145
697
1,761
1,414
As at 31 March 2016
Carrying 
amount 
£m
Contractual 
cash flows 
£m
1 year or less 
£m
1 to <2 years 
£m
2 to <5 years 
£m
5 years  
and over 
£m
Financial liabilities
Long-term borrowings
2,373
2,935
107
107
1,429
1,292
Other financial liabilities 
26
52
14
10
28

Total contractual maturities
2,399
2,987
121
117
1,457
1,292
As at 31 March 2015
Carrying 
amount 
£m
Contractual 
cash flows 
£m
1 year or less 
£m
1 to <2 years 
£m
2 to <5 years 
£m
5 years  
and over 
£m
Financial liabilities
Long-term borrowings
2,381
3,066
111
110
1,510
1,335
Other financial liabilities 
31
44
20
11
13

Total contractual maturities
2,412
3,110
131
121
1,523
1,335
53  FINANCIAL INSTRUMENTS (CONTINUED)
NOTES TO THE PARENT COMPANY  
FINANCIAL STATEMENTS 
(CONTINUED)
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
147
Company overview
Strategic report
Governance
Financial statements

NOTES TO THE PARENT COMPANY  
FINANCIAL STATEMENTS 
(CONTINUED)
(F) CREDIT RISK
Financial instruments that are subject to concentrations of credit risk consist of loans to subsidiaries, based in a variety of 
geographies and markets.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure.
Financial assets
None of the Company’s cash equivalents or other financial receivables, including time deposits with banks, are past due or 
impaired. Regarding other financial assets that are neither past due nor impaired, there were no indications as at 31 March 2017 
(2016, 2015: no indications) that defaults in payment obligations will occur.
54  RELATED PARTY TRANSACTIONS
The Company’s related parties principally consist of Tata Sons Limited, subsidiaries and joint ventures of Tata Sons Limited, which 
includes Tata Motors Limited (the ultimate parent company), subsidiaries, associates and joint ventures of Tata Motors Limited. 
The Company routinely enters into transactions with these related parties in the ordinary course of business. 
The following table summarises related party transactions and balances:
With 
subsidiaries 
£m
With 
immediate 
parent 
£m
31 March 2017
Loans to subsidiaries
3,788

31 March 2016
Loans to subsidiaries
2,603 

31 March 2015
Loans to subsidiaries
2,470 

Compensation of key management personnel
Year ended 31 March 
2017 
£m
2016 
£m
2015 
£m
Short-term benefits
5
4
3
Post-employment benefits
1
1
2
Total compensation of key management personnel
6
5
5
Apart from the five directors, the Company did not have any employees and had no employee costs in the years ended 31 March 
2017, 2016 and 2015. All directors’ costs are fully recharged to Jaguar Land Rover Limited. 
55  ULTIMATE PARENT COMPANY AND PARENT COMPANY OF LARGER GROUP
The immediate parent undertaking is TML Holdings Pte. Ltd. (Singapore) and ultimate parent undertaking and controlling party  
is Tata Motors Limited, India, which is the parent of the smallest and largest group to consolidate these financial statements. 
Copies of the Tata Motors Limited, India consolidated financial statements can be obtained from the Group Secretary, Tata 
Motors Limited, Bombay House, 24, Homi Mody Street, Mumbai-400001, India.
56  SUBSEQUENT EVENTS
In May 2017, the Company proposed an ordinary dividend of £150 million to its immediate parent TML Holdings Pte. Ltd. 
(Singapore). £60 million of this amount was paid in June 2017.
53  FINANCIAL INSTRUMENTS (CONTINUED)
Jaguar Land Rover Automotive plc  
Annual Report 2016/17
148
Company overview
Strategic report
Governance
Financial statements

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