Notes (forming part of the condensed consolidated interim financial statements)
Basis of preparation
The financial information in these
interim financial statements is unaudited and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The information for the year ended 31 March 2022 does not constitute statutory accounts as defined in
section 434 of the Companies Act 2006. A copy of the statutory accounts for the year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by
way of emphasis and did not contain a statement section 498(2) or (3) of the Companies Act 2006. The condensed consolidated interim financial statements of Jaguar Land Rover Automotive plc have been prepared in accordance with International
Accounting Standard 34, Interim Financial Reporting under International Financial Reporting Standards (IFRS) and UK-adopted international accounting standards. The balance sheet and accompanying notes as at 30 September
2021 have been disclosed solely for the information of the users.
The condensed consolidated interim financial statements have been prepared on a
historical cost basis except for certain financial instruments held at fair value as highlighted in note 20.
The condensed consolidated interim financial
statements have been prepared on the going concern basis as set out within the directors report of the Groups Annual Report for the year ended 31 March 2022.
The accounting policies applied are consistent with those of the annual consolidated financial statements for the year ended 31 March 2022, as described
in those financial statements.
Estimates and judgements
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these
condensed interim financial statements, the significant judgements made by management in applying the Groups accounting policies and the key sources of estimate uncertainty were the same as those applied to the consolidated financial
statements for the year ended 31 March 2022.
Going concern
The condensed consolidated interim financial statements have been prepared on a going concern basis, which the Directors consider appropriate for the reasons
set out below.
The Directors have assessed the financial position of the Group as at 30 September 2022, and the projected cash flows of the Group for
the twelve-month period from the date of authorisation of the condensed consolidated interim financial statements (the going concern assessment period).
The Group had available liquidity of £5.2 billion at 30 September 2022, £3.7 billion of which is cash with the remainder the undrawn
RCF facility. Within the going concern assessment period there is a £1 billion minimum quarter-end liquidity covenant attached to the Groups UKEF loans and forward start RCF facility. There is
£1.9 billion of maturing debt in the going concern assessment period, and no new funding is assumed.
The Group has assessed its projected cash
flows over the going concern assessment period. The base case uses an updated version of the assumptions used at 31 March 2022.
Details of the
scenarios and assumptions used in the assessment as at 31 March 2022 are set out in note 2 to the consolidated financial statements of the Groups Annual Report for the year ended 31 March 2022.
Base volumes have been adjusted downwards when compared to the 31 March 2022 assessment to reflect continued supply chain challenges related to
semiconductor shortages and the optimisation of production.
The base case assumes a gradual increase in wholesale volumes in each quarter of the going
concern assessment period as a result of a production ramp up of the New Range Rover and New Range Rover Sport. New agreements with semiconductor suppliers are also expected to enable sales improvements in the second half of the fiscal year.
13