jlr-nederland-bv

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Annual report of the directors

Mission Statement

Jaguar wants to be leading in building beautifull, fast cars. Land Rover on the other hand wants to be the world's leading brand at

inspiring, creating and delivering a spirit of adventure. The mission is to gain the absolute volume and image leadership in the segments

where both brands are available.

Jaguar Land Rover Netherlands

Being a national sales company the main objective of Jaguar Land Rover Netherlands is to optimise the sales of original Jaguar and LandRover products in the Netherlands. This is not limited to vehicles and parts, but also includes accessoiries and gear. Jaguar and Land

Rover products are distributed through a official Jaguar and Land Rover dealer network.

In March 2010 it was announced that as of the 1st of April 2010 Jaguar Land Rover Netherlands and Jaguar Land Rover Belux would be

integrated into one Sales Company in order to grow sales by changing the sales & marketing organisations into brand dedicated teams.

Although there will be one organisation scheme for the Benelux-organisation, the existing legal entities in both countries will remain to

exist.

Results and development during the year

Due to the economic downturn and the Dutch taxation on CO2-emission 2009 vehicle sales collapsed compared to 2008. At the back-

end of 2009, sales started to pick up again. Due to the bankruptcy of Kroymans Corporation in April 2009, Land Rover Netherlands was

appointed by Jaguar Cars as official distributor for Jaguar vehicles and parts in the Netherlands. As a result of this event, the company

changed its name to Jaguar Land Rover Nederland B.V. Out of the 17 former Jaguar Netherlands employees, 4 employees were taken

over. All other functions were combined with Land Rover in order to increase efficiency.

Future developments

At the 2009 Frankfurt Motorshow the all new Jaguar XJ was revealed. This should give a boost to the Jaguar sales in 2010. For Land

Rover the MY10 introduction of Discovery4, Range Rover Sport and Range Rover has proven to be successfull considering the order

intake in Q4-2009 and the first two months of 2010. As long as the momentum can be kept, 2010 should be a better year than 2009.

Nevertheless the improved trend in order intake is very fragile and it is hard to predict whether or not this will hold.

Investments and funding

The company hasnt executed or planned any major investments in 2009 and 2010.

In 2009 all links between Ford Motor Company and Jaguar Land Rover were disconnected. Tata Motors Ltd. Is now fully responsible for

Jaguar and Land Rover.

Being fully owned by the parent company, there are no specific risks for Jaguar Land Rover Netherlands except for the sales volume.

There are no risks re currency swaps or other financial instruments. All payments are handled in the local currency.

Jaguar Land Rover Netherlands is completely funded by it's parent company. In 2009 there were no changes in funding, nor are there

any expected in 2010. The solvency ratio as per balance date is 25,1% compared to 26,1% in the prior year.

In 2009 FCE Bank plc has been replaced by FGA Capital Netherlands as provider for wholesalefinance for Land Rover dealers. In 2010 the

Jaguar dealers will also be financed through FGA Capital. There are no specific investments to be expected.

Personnel

In 2009 four staff members of the former Jaguar importer were taken over in order to set up a dedicated Jaguar Sales & Marketing

branch within Jaguar Land Rover Netherlands. All other tasks that came with the Jaguar brand were taken over by the existing team.

Together with the announcement of the integration of the NSC's, it was also announced that Customer Service would become a

centralised task during 2010. This means that by the end of 2010 four members of this department's staff will have left the company.

Environmental issues

Land Rover takes environmental care very seriously. Investments are made on an ongoing basis in order to improve Jaguars and Land

Rovers reputation on corporate citizenship. Together with a number of suppliers and supported by the British government, Jaguar and

Land Rover are not only working on low emission vehicles, but also on several other projects that will reduce the companys CO2-

emission in the nearby future. At the 2010 Paris Motorshow Land Rover will introduce an all new small Range Rover that will have the

lowest CO2-emission ever seen on a Land Rover product. At the moment this model is known as the Range Rover LRX.

Beesd, 8 April 2010

M.A.M. Bienemann

Managing Director

Jaguar Land Rover Nederland BV

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Balance sheet as at 31 December 2009

(before proposed appropriation of result)

31 December 2009 31 December 2008Ref. EUR000 EUR000 EUR000 EUR000

Assets

Fixed assets Tangible fixed assets 4 21 15Financial fixed assets 5 14 14

35 29

Current assetsStocks 6 4,441 5,245Receivables 7 15,939 11,356Cash at banks and in hand 8 844 1,253

21,224 17,854

21,259 17,883

In Indian Rupees:

31-Dec-09 31-Dec-08INR000 INR000 INR000 INR000

Assets

Fixed assets

Tangible fixed assets 1,401 1,013

Financial fixed assets 934 946

2,336 1,959

Current assets

Stocks 296,359 354,264

Receivables 1,063,649 767,020

Cash at banks and in hand 56,322 84,632

1,416,330 1,205,916

1,418,666 1,207,875


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31 December 2009 31 December 2008

Ref. EUR000 EUR000 EUR000 EUR000

Shareholders equity and liabilities

Shareholders' equity 9

Share capital 45 45Other reserves 4,651 4,133

Result for the year 648 518

5,344 4,696

Provisions 10 0 134

Current liabilities 11 15,915 13,053

21,259 17,883

In Indian Rupees:

31-Dec-09 31-Dec-08

INR000 INR000 INR000 INR000

Shareholders equity and liabilities

Shareholders' equity

Share capital 3,003 3,039

Other reserves 310,373 279,156

Result for the year 43,243 34,987

356,618 317,183

Provisions - 9,051

Current liabilities 1,062,047 881,641

1,418,666 1,207,875


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Profit and loss account 2009

2009 2008

Ref. EUR000 EUR000 EUR000 EUR000

Net turnover 13 53,559 81,563

Cost of sales 44,542 72,931Personnel expenses 14 2,412 1,934Depreciation of tangible fixed assets 15 14 19General and administrativeexpenses 16 5,899 5,795

Total expenses 8,325 7,748

Operating result 692 884

Financial income and expenses 18 150 567

Result on ordinary activities

before taxation 842 1,451

Taxation on result on ordinaryactivities (194) (933)

Net result after taxation 648 518

Profit and loss account 2009 In Indian Rupees (000's)

2009 2008


Net turnover 3,574,125 5,509,025

Cost of sales 2,972,398 4,925,992

Personnel expenses 160,959 130,629

Depreciation of tangible fixed assets 934 1,283

393,655 391,413General and administrative expenses

- -

Total expenses 555,548 523,325

Operating result 46,179 59,708

Financial income and expenses 10,010 38,297

Result on ordinary activities before

taxation

56,189 98,005

Taxation on result on ordinaryactivities

(12,946) (63,018)

Net result after taxation 43,243 34,987


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Cash flow statement 2009

(According to the indirect Method) 2009 2008

Ref. EUR EUR EUR EUR

Cash flow from operating

activitiesOperating Result 692 884

Adjustments in respect of:Amortisation of intangible fixedassets and depreciation of tangiblefixed assets 15 14 19(Addition to)/release fromprovisions 10 (134) 9

(120) 28

Changes in working capital:Receivables 7 (9,071) 25,722Stocks 6 804 5,637Current liabilities 2,653 (26,900)

(5,614) 4,459

Cash flow from business activities (5,042) 5,371

Corporate income taxReceived/(paid) 4,503 (7,093)Interest received 187 567

4,690 (6,526)

Cash flow from operating

activities (352) (1,155)


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Ref. EUR EUR EUR EUR

Cash flow from investment

activities

Investments (mutation) in:

Tangible fixed assets 4 (20) (9)

(20) (9)

Cash flow from financing

activitiesInterest paid (37) 0

(37) 0

Net cash flow (409) (1,164)

Increase/(decrease) cash and cashequivalents (409) (1,164)

Movement in cash and cash

equivalentsCash and cash equivalents as at1 January

8 1,253 2,417

Increase/(decrease) cash and cashequivalents (409) (1,164)

Cash and cash equivalents as at

31 December 8 844 1,253

Cash flow statement 2009 In Indian Rupees (000's)



Cash flow from operating activities

Operating Result 46,179 59,708

Adjustments in respect of:

Amortisation of intangible fixed assetsand depreciation of tangible fixedassets

934 1,283

(Addition to)/release from provisions (8,942) 608

(8,008) 1,891

Changes in working capital:

Receivables (605,330) 1,737,346

Stocks 53,653 380,741

Current liabilities 177,041 (1,816,912)

(374,636) 301,175

Cash flow from business activities (336,465) 362,774

Corporate income tax

Received/(paid) 300,496 (479,084)


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Interest received 12,479 38,297

312,975 (440,787)

Cash flow from operating activities (23,490) (78,012)

Cash flow from investment

activities

Investments (mutation) in:

Tangible fixed assets (1,335) (608)

(1,335) (608)

Cash flow from financing activitiesInterest paid (2,469) -

(2,469) -

Net cash flow (27,294) (78,620)

Increase/(decrease) cash and cashequivalents

(27,294) (78,620)

Movement in cash and cash

equivalents

Cash and cash equivalents as at1 January

83,616 163,252

Increase/(decrease) cash and cashequivalents

(27,294) (78,620)

Cash and cash equivalents as at31 December

56,322 84,632


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Notes to the balance sheet and profit and loss account

1 General1.1 ActivitiesJaguar Land Rover Nederland B.V. , having its legal seat at Stationsweg 8, 4153 RD in Beesd, is primarily engaged in marketing Jaguar

and Land Rover vehicles and related parts and accessories.

These products are entirely obtained within the Jaguar Land Rover group and are mainly distributed to the dealer network in the

Netherlands.

Due to the declaration of bankruptcy of Kroymans in 2009, Jaguar Nederland C.V. also went into administration. In order to continueJaguar sales in the Netherlands, Jaguar Cars Ltd has appointed Land Rover Nederland B.V. as the official distributor of Jaguar products in

the Netherlands. Therefore the company has changed it's name from Land Rover Nederland B.V. into Jaguar Land Rover Nederland B.V.

1.2 Group structureJaguar Land Rover Nederland B.V. belongs to the Jaguar Land Rover group. The ultimate parent company of this group is Tata Group in

India. The annual accounts of Jaguar Land Rover Nederland B.V. are included in the consolidated annual accounts of Tata Motors Ltd in

India. Copies of the consolidated annual accounts of 2009 Tata Motors Ltd. are available at cost price from the offices of Jaguar Land

Rover Nederland B.V.

1.3 Accounting policiesThe annual accounts are prepared according to the stipulations in chapter 9 Book 2, of the Netherlands Civil Code and the firm

pronouncements in the Guidelines for Annual Reporting in the Netherlands as issued by the Dutch Accounting Standards Board.

1.4 Notes to the cash flow statementThe cash flow statement has been prepared applying the indirect method. The cash and cash equivalents in the cash flow statement

comprise the balance sheet items cash at banks and in hand.

Corporate income taxes, issuance of share capital, interest received and dividends received are presented under the cash flow from

operating activities.

2 Principles of valuation of assets and liabilities2.1 GeneralIn general, assets and liabilities are stated at the amounts at which they were acquired or incurred, or fair value. If not specifically stated

otherwise, they are recognised at the amounts at which they were acquired or incurred. The balance sheet and profit and loss account

include references to the notes.

2.2 Change in accounting policiesDue to a change in local legislation on accounting for Pension liabilities and costs under RJ271, Dutch GAAP, management has decided

not to continue to report the Pension liabilities and costs under this principle any longer. For comparison purposes the 2008 data has

been readjusted to the principles that were used to calculate the 2009 liabilities and costs. The impact on the equity as per January 1,2008 amounts to EUR 339,000, the impact on the financial result of the year 2008 amounts to EUR 107 (profit).

2.3 Tangible fixed assetsMachinery and equipment are valued at acquisition cost plus additional direct expenses, less straight-line depreciation over the

estimated economic life. Any impairment as at the balance sheet date is taken into account. For determining whether an impairment

charge in respect of a tangible fixed asset applies, reference is made to note 2.5.

Other fixed assets are valued at acquisition or production cost including directly attributable expenses, less straight-line depreciation

over the estimated useful economic life, or market value if lower. Directly attributable production cost includes the costs of the raw

materials and consumables, and also includes interest during construction and installation costs.

2.4 Financial fixed assetsFinancial fixed assets are valued at the lower of cost and market value. For deferred tax assets, reference is made to note 2.11.

2.5

Impairment of fixed assetsOn the balance sheet date, the Company tests whether there are any indications of an asset which could be subject to impairment. If

there are such indications, the recoverable amount of the asset concerned is estimated. If this is not possible, the recoverable amount of

the cash-generating unit to which the asset belongs, is identified. An asset is subject to impairment if its book value is higher than its

recoverable value; the recoverable value is the higher of the realisable value and the value to the business.

If it is established that a previously recognised impairment no longer applies or has declined, then the increased carrying amount of the

assets in question is not set higher than the carrying amount that would have been determined had no asset impairment been

recognised.

2.6 StocksStocks for own use and resale

The finished products are valued at acquisitions cost using the FIFO method (first in, first out) or net lower realisable value. This lower

net realizable value is determined by individual assessment of inventories.

2.7 ReceivablesTrade debtors are carried at the fair value of the consideration, usually its face value less any provision for doubtfull debt. Provisions are

determined by individual assessment of the receivables.


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2.8 Cash at banks and in handCash at banks and in hand consists of cash in hand, cash at banks and deposits with a maturity of less than twelve months. Current

account liabilities at banks are recognised under bank overdrafts forming part of current liabilities.

2.9 Shareholders equityExpenses directly related to the purchase, sale and/or issue of new shares are charged directly to shareholders equity, taking into

account relevant corporate income tax effects. Other direct movements within shareholders equity are also recognised taking into

account relevant corporate income tax effects.

2.10 ProvisionsProvisions are formed for legally enforceable or constructive obligations existing on the balance sheet date, the settlement of which islikely to require an outflow of resources whose extent can be reliably estimated.

Provisions are measured on the basis of the best estimate of the amounts required to settle the obligations as at the balance sheet date.

Provisions are stated at the discounted value of the expenditure expected to be required to settle the obligations.

Pension provision

The Company has two defined benefit schemes. These provide defined pension benefits to staff upon reaching retirement age, the

amount of which depends on age, salary and years of service.

The pension obligations of both the Dutch and the foreign plans are valued according to the valuation to pension fund approach". This

approach accounts for the contribution payable to the pension provider as an expense in the profit and loss account.

Based on the administration agreement it is assessed whether and, if so, which obligations exist in addition to the payment of the annual

contribution due to the pension provider as at balance sheet date. These additional obligations, including any obligations from recovery

plans of the pension provider, lead to expenses for the company and are included in a provision on the balance sheet. With final salary

pension plans an obligation (provision) for (upcoming) past service is included if future salary increases have already been defined as at

balance sheet date.

The valuation of the obligation is the best estimate of the amounts required to settle this as at balance sheet date. If the effect of the

time value of money is material the obligation is valued at the present value. Discounting is based on interest rates of high-quality

corporate bonds. Additions to and release of the obligations are recognized in the profit and loss account. A pension receivable is

included in the balance sheet when the company has the right of disposal over the pension receivable and it is probable that the future

economic benefits which the pension receivable holds will accrue to the company, and the pension receivable can be reliably

established.

As at year-end 2009 (and 2008) no pension receivables and no obligations existed for the group in addition to the payment of the

annual contribution due to the pension provider.2.11 Deferred tax assets and liabilitiesDeferred tax assets and liabilities are recognised in respect of timing differences between valuation of assets and liabilities according to

fiscal provisions on the one hand and the valuation principles as used in these annual accounts on the other. Deferred tax assets and

liabilities are calculated based on the ruling tax rates as at year-end or future applicable rates, insofar as already decreed by law.

Deferred tax assets, including those from losses carried forward, are valued if it is probable that fiscal profit will be available to offset

losses, and settlement possibilities can be utilised.

Deferred taxes are valued at nominal value.

Deferred tax assets are recognised under financial fixed assets; deferred tax liabilities are recognised under provisions.

2.12 LeasingOperational leaseLease contracts for which a large part of the risks and rewards incidental to ownership of the assets does not lie with the Company, are

recognised as operational leases. Obligations under operational leases are recognised on a straight-line basis in the profit and loss

account over the term of the contract, taking into account reimbursements received from the lessor.

3 Principles for determination of result3.1 General

The result represents the difference between the value of the consideration rendered and the costs and other charges for the year. The

results on transactions are recognised in the year they are realised.

3.2 Revenue recognitionIncome from the supply of goods is recognised as soon as all substantial rights and risks relating to the title to the goods are transferred

to the customer.


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3.3 Net turnover and other operating incomeNet turnover is determined as income from the supply of goods, less discounts and such like, exclusive of value added taxes, taxes on

passenger cars (BPM) and after elimination of intragroup sales.

3.4 CostsCosts are recognised on the historical cost convention and are allocated to the reporting year to which they relate.

3.5 Cost of salesCost of sales represents the direct and indirect expenses attributable to turnover, and other external expenses and other operating

expenses that are attributable to the cost of sales.

3.6

General and administrative expensesGeneral and administrative expenses includes the expense of the Managing Director and the administration department.

3.7 Personnel remunerationRegular payments

Salaries, wages and social security costs are charged to the profit and loss account when due, and in accordance with employment

contracts and obligations.

Pensions

The Company has two pension schemes. These provide defined pension benefits to staff upon reaching retirement age, depending on

age, salary and years of service for which we refer to paragraph 2.10.

3.8 DepreciationIntangible fixed assets including goodwill are amortised and tangible fixed assets are depreciated over their expected useful life as from

the inception of their use. Land and investment property are not depreciated. Future depreciation is adjusted if there is a change in

estimated useful life.

3.9 Financial income and expenseInterest income and expenseInterest income and expense are time apportioned, taking into account the effective interest rate for the relating assets and liabilities.

The treatment of interest expenses for loans received takes account of any transaction costs.

3.10 TaxationProfits tax is calculated on the profit/loss before taxation in the profit and loss account, taking into account any losses carried forward

from previous financial years (insofar as these are not included in deferred tax assets), tax-exempt items and non-deductible expenses,

and using current tax rates. Also taken into account are changes in deferred tax assets and deferred tax liabilities owing to changes in

the applicable tax rates.

4 Tangible fixed assetsMachinery and

equipment

Other fixed

assets

Total

EUR000 EUR000 EUR0001 January 2009Acquisition or production costs 93 41 134Accumulated impairments anddepreciation (91) (28) (119)

Book value 2 13 15

Movements 2009Additions 0 20 20Disposals 0 0 0Depreciation disposals 0 0 0Depreciation (2) (12) (14)

(2) 8 631 December 2009Acquisition or production costs 93 61 154Accumulated impairments anddepreciation (93) (40) (133)

Book value 0 21 21

Depreciation rates 25% 33,33%


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Machinery and

equipment

Other

fixed

assets

Total

INR000 INR000 INR000

01-Jan-09

Acquisition or production costs 6,282 2,769 9,051Accumulated impairments and

depreciation (6,146) (1,891) (8,038)Book value 135 878 1,013

Movements 2009Additions - 1,335 1,335Disposals - - -Depreciation disposals - - -Depreciation (133) (801) (934)

- - -(133) 534 400

31-Jan-09Acquisition or production costs 6,206 4,071 10,277Accumulated impairments anddepreciation (6,206) (2,669) (8,875)

Book value - 1,401 1,401

5 Financial fixed assetsTotal financial

fixed assetsEUR000

1 January 2009Book value 14

Movements 2009 0

31 December 2009Book value 14

Total financial

fixed assetsINR000

1 January 2009Book value 934

Movements 2009 0

31 December 2009Book value 934

Due to the change in accounting for Pension liabilities and costs, any assets, liabilities or costs that were reported in relationship to this

principle in 2008, have been adjusted for comparison purposes resulting in an adjustment of the deferred tax asset 2008 of EUR 73.

The other financial fixed assets include one certificate of EUR 14,000 in a golf club.

6 Stocks31 Dec 2009 31 Dec 2008

EUR000 EUR000

Stocks for own use and resaleFinished products and goods for resale 4,441 5,245

Total 4,441


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principle in 2008, have been adjusted for comparison purposes.

31 December

2009

31 December

2008INR000 INR000

Balance sheet according to 2008 financial statements 279,156 173,113

Profit distribution prior financial year 31,217 83,146

Effect change in accounting policy 0 22,897

Balance as at 31 December 310,373 279,156

9.3 Result for the yearAppropriation of result 2008

At the General Meeting of Shareholders the 2008 result was adopted as follows:

31 December

2009

31 December

2008EUR000 EUR000

Balance sheet as at 1 January 518 1,231Added to other reserves (518) (1,231)Result for year after taxation 648 625

Effect change in accounting policy 0 (107)

Balance as at 31 December 648 518

31 December

2009

31 December

2008INR000 INR000

Balance sheet as at 1 January 34,987 83,146

Added to other reserves (34,567) (83,146)

Result for year after taxation 43,243 42,214

Effect change in accounting policy - (7,227)

Balance as at 31 December 43,663 34,987



10 Provisions31 Dec 2009 31 Dec 2008

EUR000 EUR000Pension benefits 0 285Effect change in accounting policy 0 (285)Other 0 134

0 134

The pension costs are included in personnel expenses.



31 Dec 2009 31 Dec 2008

INR000 INR000

Pension benefits 0 19,250Effect change in accounting policy 0 (19,250)Other 0 9,051

0 134


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10.1 Other provisionsThe other provisions relates to warranty & policy and have a long-term character (exceeding one year). Centrally a provision is held for

warranty costs for both brands. Since all dealer claims are paid from this central provision, it was decided that it was no longer required

and therefore the local provisions could be released.

Other OtherEUR000 INR000

1 January 2009 134 9,051

Movements (134) (9,051)

31 December 2009 0 0

11 Current liabilities31 Dec 2009 31 Dec 2008

EUR000 EUR000 Trade creditors 585 256 Tax payable 6,485 3,423Group Companies 2,010 4,115Other liabilities 6,835 4,979Accruals and deferred income 0 280

15,915 13,053

The average interest paid to Land Rover Group in the cash pool arrangement amounted 1.5% in 2009.

31 Dec 2009 31 Dec 2008INR000 INR000

Trade creditors 39,039 17,291

Tax payable 432,760 231,200

Group Companies 134,132 277,940

Other liabilities 456,117 336,298

Accruals and deferred income - 18,912

1,062,047 881,641

12 Commitments not included in the balance sheetFinancial obligations

The Company issued a guarantee to the Dutch tax authorities of EUR 150,000 associated with BPM.

The commitment for renting the building amounts to EUR 149,922 on a yearly basis and this contract expires in 2013.

13 Net turnoverNet turnover can be split into the following major categories:

2009 2008EUR000 EUR000

Cars 39,792 67,935Parts 13,767 13,628

53,559 81,563

The BPM related to this revenue amounts to EUR 15,976,000 (2008: EUR 31,623,478) for the financial year 2009. The BPM is not included

in the revenue.

2009 2008INR000 INR000

Cars 2,655,419 4,588,547

Parts 918,706 920,479

3,574,125 5,509,025


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14 Personnel expenses2009 2008

EUR000 EUR000Wages and salaries 1,483 1,539Pension costs 683 98Effect change in accounting policy related to pension costs 0 143Other social security costs 246 154

2,412 1,934



2009 2008INR000 INR000

Wages and salaries 98,964 103,949

Pension costs 45,578 6,619

Effect change in accounting policy related to pension costs - 9,659

Other social security costs 16,416 10,402

160,959 130,629

15 Amortisation and depreciation of tangible fixed assetsAmortisation and depreciation

2009 2008EUR000 EUR000

Tangible fixed assets (note 4) 14 19

14 19

2009 2008INR000 INR000

Tangible fixed assets (note 4) 934 1,283

934 1,283

16 General and administrative expensesThe general and administrative expenses captions can be broken down as follows:

2009 2008EUR000 EUR000

Local variable costs 4,397 4,498Rent / heating / light utilities 231 242Cost of company vehicles 273 174Cost of administration 350 391Cost of computers 232 101Other 416 389

5,899 5,795

The auditors fee amounts to EUR 30,000 (2008: EUR 32,500) and is related to the audit of the financial statements. No other services

where provided by the auditor.

2009 2008INR000 INR000

Local variable costs 293,423 303,809

Rent / heating / light utilities 15,415 16,345

Cost of company vehicles 18,218 11,753

Cost of administration 23,356 26,409

Cost of computers 15,482 6,822

Other 27,761 26,274

393,655 391,413


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17 Other notes to the profit and loss accountOperational lease

During the financial year the Company recognised operational lease payments to the amount of EUR 7,970 (2008: EUR 19,045)

in the profit and loss account.

18 Financial income and expenses2009 2008

EUR000 EUR000Interest costs/income on receivables/liabilities to group companies (22) 327Other interest income 187 240Interest expenses (15) 0

150 567

2009 2008INR000 INR000

Interest costs/income on receivables/liabilities to group companies (1,468) 22,087

Other interest income 12,479 16,210

Interest expenses (1,001) -

10,010 38,297

19 EmployeesDuring 2009 an average of 20 FTE (2008: 17 FTE) have been employed by the Company.

20 Related partiesAll group companies mentioned in note 7 and 11 are considered to be related parties. Jaguar Land Rover Netherlands has to pay to

these group companies cost of sales, operating expenses and receives interest.

Cost of Sales

31 Dec 2009 31 Dec 2008EUR000 EUR000

Jaguar Cars Ltd 13,238 0Land Rover Exports Ltd. 26,761 52,998

Land Rover France 10,589 10,632

50,588 63,630

Operating expenses

31 Dec 2009 31 Dec 2008EUR000 EUR000

Ford Credit Europe Plc (up and until the sale to Tata) 0 1,310

Volvo Cars Nederland B.V. (up and until the sale to Tata) 0 320

0 1,630

Interest

31 Dec 2009 31 Dec 2008EUR000 EUR000

Land Rover Exports Ltd. 22 (33)

Ford Motor Company (up and until the sale to Tata) 0 (294)

22 (327)

In Indian Rupees:

Cost of Sales

31 Dec 2009 31 Dec 2008INR000 INR000

Jaguar Cars Ltd 883,405 -

Land Rover Exports Ltd. 1,785,828 3,579,654

Land Rover France 706,630 718,119


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3,375,863 4,297,773

Operating expenses

31 Dec 2009 31 Dec 2008INR000 INR000

Ford Credit Europe Plc (up and until the sale to Tata) 0 88,482

Volvo Cars Nederland B.V. (up and until the sale to Tata) 0 21,614

0 110,095

Interest

31 Dec 2009 31 Dec 2008INR000 INR000

Land Rover Exports Ltd. 1,468 (2,229)

Ford Motor Company (up and until the sale to Tata) - (19,858)

1,468 (22,087)

21 Taxation on result on ordinary activitiesThe taxation on result on ordinary activities amounting to EUR 194,000 can be specified as follows:

2009 2008EUR000 EUR000

Result from ordinary activities before taxation 56,189 107,664Effect on result related to change in accounting policy - (9,659)

56,189 98,005

Taxation on result on ordinary activities (12,946) (23,978)

Movement in deferred tax asset - (2,432)

Tax effect due to change in accounting policy - 2,432

Adjustment prior years - (39,040)

Taxation according to the profit and loss account (12,946) (63,018)Effective tax rate 23,0% 64,3%Applicable tax rate 25,5% 25,5%

2009 2008

INR000 INR000

Result from ordinary activities before taxation 3,749,631 7,271,970Effect on result related to change in accounting policy - -652,400

3,749,631 6,619,570

Taxation on result on ordinary activities -863,919 -1,619,551Movement in deferred tax asset - -164,265

Tax effect due to change in accounting policy - 164,265Adjustment prior years - -2,636,886

Taxation according to the profit and loss account -863,919 -4,256,437

Effective tax rate 23,0% 64,3%Applicable tax rate 25,5% 25,5%



The applicable tax rate is based on the tax rates ruling in the countries concerned.

In 2009 a dispute with the Tax Authorities has come to an end. This dispute referred to the period 2000 2007 and was related to

Income Tax. The final outcome was that in 2008 EUR 578,000 had to be added to the actual tax to be paid.

Going forward Jaguar Land Rover will continue to calculate the annual profit in accordance with the Costplus-methodology. Although the

income tax return of 2008 has been approved, the Tax Authorities have confirmed that they will evaluate the outcome of the profit calculation

on an annual basis, because they reject methodology used as a matter of principle.


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22 Remuneration DirectorsThe Company applies Article 2:383, Paragraph 1 of the Dutch Civil Code. In accordance with this, charges regarding remuneration,

including pensions, of the director are not disclosed.

Conversion into Indian Rupees

The financial information is expressed in Euro only in the Audited Accounts based on which the attached financial statements have been

reformatted. Solely for the convenience of the reader and to meet the requirements of Section 212 of the Indian Companied Act, 1956,the amount appearing in Indian Rupees have been translated at a fixed exchange rate @ EUR = Rs. 67.5432 as on December 31, 2008 and

EUR = Rs. 66.7325 as on December 31, 2009. These translations should not be constructed as a representative that any or all of the

amounts could be converted to Indian Rupees at this or any other rate.

The Directors' report, Auditors' report and Financial information as given above are reformatted from Group and Company accounts.

Beesd, 8 april 2010

M.A.M. Bienemann

Managing Director

Other information

Auditors report

Reference is made to the auditors report as included hereinafther.

Subsequent events

In March 2010 it was announced that the activities of Jaguar Land Rover Nederland BV and Jaguar Land Rover Belux would merge into a

new organisation called Jaguar Land Rover Benelux. Due to this event and the fact that the Customer Service activities will be centralised

and therefore have to be reorganised, four employees with fixed term contracts will have left the company by the end of 2010. The

expenses related to this reorganisation will be included in the 2010 profit and loss accounts.

Profit appropriation according to the Articles of Association

According to article 15 of the Articles of Association the profit for the year is at the free disposal of the General Meeting of Shareholders.

Appropriation of result for the financial year 2008

The annual report 2008 is determined in the General Meeting of Shareholders held on June 1, 2009. The General Meeting of

Shareholders has determined the appropriation of result for 2008 in accordance with the proposal being made to that end.

Proposed appropriation of result for the financial year 2009

Following the proposed profit appropriation of the Board of Directors, and pursuant to article 15 of the Articles of Association, an

amount of EUR 648,000 of the 2009 result it is proposed to add EUR 648,000 of the profit to other reserves.

The financial statements do (not yet) reflect this proposal.


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