24 September, 2008
There have been media reports on Jaguar Land Rover’s financial performance for the period Jan. 1 – June 1, 2008, of having made a loss of USD 383 million.
We wish to clarify that
a) Tata Motors believes that the earnings before interest and tax – EBIT (prior to adjustments) represents the performance of the Jaguar Land Rover operations for the period Jan 1, 2008 – June 1, 2008 and for June 1, 2008 – June 30, 2008.
The relevant EBIT are reproduced below for ready reference:
|Jan. 1 – June 1, 2008||June 2 – June 30, 2008|
|EBIT (prior to adjustments)||US$ 625 million||US$ 63 million|
b) As explained in the Letter of Offer dated September 18, 2008, adjustments and provision for tax figures, indicated below EBIT (prior to adjustments), primarily relate to Ford consolidation or accounting adjustments and hence are not reflective of Jaguar Land Rover’s business performance.
c) The acquisition for Jaguar Land Rover’s business, which was part of Ford’s operation, was consummated on June 2, 2008 and the purchase consideration of USD 2.3 billion was decided on a "cash free debt free basis" and hence such purchase consideration amount remains unaffected by the payment of dividends to Ford prior to acquisition by Tata Motors.