FinancialStatementAnalysesofTata Short
FinancialStatementAnalysesofTata Short
FinancialStatementAnalysesofTata Short
(` in crores)
As at As at
Notes
March 31, 2023 M arch 31, 2022
I. ASSETS
(1) NON-CURRENT ASSETS
(a) Property, plant and equipment 3 (b) 11,707.87 11,733.44
(b) Capital work-in-progress 3 (c) 575.65 585.21
(c) Right of use assets 4 (b) 421.27 332.45
(d) Other intangible assets 5 (b) 2,413.18 2,009.87
(e) Intangible assets under development 5 (c) 509.30 882.03
(f) Investments in subsidiaries, joint ventures and associates 6 27,976.80 27,917.45
(g) Financial assets
(i) Investments 7 1,204.82 1,338.94
(ii) Loans and advances 9 114.40 48.43
(iii) Other financial assets 11 2,405.23 1,992.52
(h) Deferred tax assets (net) 28 1,477.26 -
(i) Non-current tax assets (net) 868.22 777.68
(j) Other non-current assets 13 596.82 662.24
50,270.82 48,280.26
(2) CURRENT ASSETS
(a) Inventories 15 (b) 3,027.90 3,718.49
(b) Financial assets
(i) Investments 8 3,142.96 5,143.08
(ii) Trade receivables 16 2,307.72 2,111.78
(iii) Cash and cash equivalents 18 (b) 1,121.43 2,450.23
(iv) Bank balances other than (iii) above 19 293.22 155.20
(v) Loans and advances 10 132.29 139.37
(vi) Other financial assets 12 255.25 809.51
(c) Other current assets 14 1,219.18 1,091.95
11,499.95 15,619.61
TOTAL ASSETS 61,770.77 63,899.87
II. EQUITY AND LIABILITIES
EQUITY
(a) Equity share capital 20 766.02 765.88
(b) Other equity 21,703.83 19,178.27
22,469.85 19,944.15
LIABILITIES
(1) NON-CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings 22 10,445.70 14,102.74
(ii) Lease liabilities 305.26 237.84
(iii) Other financial liabilities 25 414.44 460.37
(b) Provisions 27 (b) 1,588.75 1,474.11
(c) Deferred tax liabilities (net) 28 51.16 173.72
(d) Other non-current liabilities 29 692.08 514.13
13,497.39 16,962.91
(2) CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings 23 8,426.74 9,129.91
(ii) Lease liabilities 100.99 58.58
(iii) Trade payables 24
(a) Total outstanding dues of micro and small enterprises 114.67 146.10
(b) Total outstanding dues of creditors other than micro and small enterprises 7,047.93 5,956.00
(iv) Acceptances 5,839.39 7,883.96
(v) Other financial liabilities 26 1,300.18 1,113.26
(b) Provisions 27 (c) 408.89 608.06
(c) Current tax liabilities (net) 53.66 49.67
(d) Other current liabilities 30 2,511.08 2,047.27
25,803.53 26,992.81
TOTAL EQUITY AND LIABILITIES 61,770.77 63,899.87
Integrated Report / 2022-23
SHIRAZ VASTANI GIRISH WAGH [DIN: 03119361] MALOY KUMAR GUPTA [ACS: 24123]
Partner Executive Director Company Secretary
Membership No. 103334
UDIN: 23103334BGYMRR6797
Place: Mumbai Place: Mumbai
Date: May 12, 2023 Date: May 12, 2023
318
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
SHIRAZ VASTANI GIRISH WAGH [DIN: 03119361] MALOY KUMAR GUPTA [ACS: 24123]
Partner Executive Director Company Secretary
Membership No. 103334
UDIN: 23103334BGYMRR6797
Place: Mumbai Place: Mumbai
Date: May 12, 2023 Date: May 12, 2023
319
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Non-cash transactions:
Liability towards property, plant and equipment and other intangible assets purchased on credit/
deferred credit 317.14 185.40
SHIRAZ VASTANI GIRISH WAGH [DIN: 03119361] MALOY KUMAR GUPTA [ACS: 24123]
Partner Executive Director Company Secretary
Membership No. 103334
UDIN: 23103334BGYMRR6797
Place: Mumbai Place: Mumbai
Date: May 12, 2023 Date: May 12, 2023
321
322 Integrated Report / 2022-23
Statement of Changes in Equity for the year ended March 31, 2023
A. EQUITY SHARE CAPITAL
(` in crores)
Particulars
Balance as at April 1, 2022 765.88
Changes in equity share capital due to prior period errors -
Restated balance as at April 1, 2022 765.88
Issue of shares on exercise of stock options by employees 0.14
Balance as at March 31, 2023 766.02
B. Other Equity (refer note 21) (` in crores)
Cost as at April 1, 2021 4,869.08 3,925.12 31,358.48 225.86 264.14 522.77 37.66 4.02 41,207.13
Additions (refer note below) - 51.82 1,175.92 0.36 31.64 36.18 - - 1,295.92
Assets transferred to Tata Motors Passenger
Vehicles Limited (refer note 45) (786.74) (819.42) (12,708.01) (67.12) (21.07) (67.54) (2.36) - (14,472.26)
Adjustments due to conversion of Joint Operation
to Joint Venture - (360.97) (2,800.70) (22.87) (12.60) (15.00) - - (3,212.14)
Disposals/adjustments - (9.05) (333.40) (6.33) (88.66) (14.95) - - (452.39)
Cost as at March 31, 2022 4,082.34 2,787.50 16,692.29 129.90 173.45 461.46 35.30 4.02 24,366.26
Accumulated depreciation as at April 1, 2021 - (1,443.92) (19,873.20) (153.56) (176.68) (379.14) (26.13) (1.03) (22,053.65)
Depreciation for the year - (82.25) (790.56) (5.90) (31.02) (39.91) (1.39) (0.08) (951.11)
Depreciation for discontinued operations (refer
note 45) - (19.42) (450.77) (3.21) (4.78) (1.47) - - (479.65)
Assets transferred to Tata Motors Passenger
Vehicles Limited (refer note 45) - 334.75 8,182.04 36.07 13.49 60.75 0.51 - 8,627.61
Adjustments due to conversion of Joint Operation
to Joint Venture - 148.28 1,632.45 18.11 6.49 14.45 - - 1,819.78
Disposal/adjustments - 2.26 326.43 3.98 72.55 (1.02) - - 404.20
Accumulated depreciation as at March 31, 2022 - (1,060.30) (10,973.61) (104.51) (119.95) (346.34) (27.01) (1.11) (12,632.82)
Net carrying amount as at March 31, 2022 4,082.34 1,727.20 5,718.68 25.39 53.50 115.12 8.29 2.91 11,733.44
Note:
Include assets of `152.51 crores capitalized during August 24, 2021 to December 31, 2021 which is pertaining to PV undertaking. (refer note 45)
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
Note:
Additions for the year ended March 31, 2022 include assets of ` 275.41 crores purchased during August 24, 2021 to December 31, 2021
which is pertaining to PV undertaking. (refer note 45)
(e) Expected Completion schedule of Capital work-in-progress where cost or time overrun has
exceeded original plan
As at March 31, 2023
To be completed
More than
Up to 1 year 1-2 years 2-3 years Total
3 years
Project in Progress
Project 1 - - - - -
Other Projects* 192.98 15.53 9.60 3.36 221.47
192.98 15.53 9.60 3.36 221.47
More than
Up to 1 year 1-2 years 2-3 years Total
3 years
Project in Progress
Project 1 85.82 - - - 85.82
Other Projects* 242.86 7.71 - - 250.57
328.68 7.71 - - 336.39
*Individual projects less than ` 50 crores have been clubbed together in other projects.
Original plan is considered as that plan which is approved and on the basis of which implementation progress is evaluated. Such original
plan includes management’s estimates and assumptions w.r.t future business, economy / industry and regulatory environments.
329
Notes
forming part of Financial Statements
(` in crores)
Plant, machinery Computers and
Right of use assets Land Buildings
and equipments
Vehicles
other IT assets
Total
Note:
i. There are no leases with residual value guarantees.
Integrated Report / 2022-23
ii. Include assets of `97.82 crores capitalized during August 24, 2021 to December 31, 2021 which is pertaining to PV undertaking. (refer note 45)
(c) There are certain vehicles which are being given to the customers along with operations and maintenance of the same.
These are accounted as finance lease as the material risks and rewards are transferred to the lessee.
The average effective interest rate contracted approximates between 5.09% to 8.10% (2022: 5.09 % to 8.10% ) per
annum.
332
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
The following amounts are recognised in the statement of profit and loss : (` in crores)
For the year ended For the year ended
March 31, 2023 March 31, 2022
Sales Revenue for finance leases - 278.58
Finance income on the net investment in finance leases 34.75 25.90
Income relating to variable lease payments not included in the net investment in finance
leases - -
The table below provides details regarding the contractual maturities of finance lease receivables:
(` in crores)
As at March 31, 2023
Total
Due in 3rd to Due beyond 5th
Due in 1st Year Due in 2nd Year contractual
5th Year Year
cash flows
Finance lease receivables 32.18 32.53 114.20 220.42 399.33
Amortisation is provided on a straight-line basis over estimated useful lives of the intangible assets as per details
below:
Estimated amortisation
period
Technical know-how 8 to 10 years
Software 4 years
Integrated Report / 2022-23
The amortisation period for intangible assets with finite useful lives is reviewed at each year-end. Changes in
expected useful lives are treated as changes in accounting estimates.
Product development costs incurred on new vehicle platform, engines, transmission and new products are recognised
as intangible assets, when feasibility has been established, the Company has committed technical, financial and
other resources to complete the development and it is probable that asset will generate future economic benefits.
The cost of an internally generated intangible asset is the sum of directly attributable expenditure incurred from the
date when the intangible asset first meets the recognition criteria to the completion of its development.
Interest cost incurred is capitalised up to the date the asset is ready for its intended use, based on borrowings
incurred specifically for financing the asset or the weighted average rate of all other borrowings if no specific
borrowings have been incurred for the asset.
Product development expenditure is measured at cost less accumulated amortisation and impairment, if any.
Amortisation is not recorded on product engineering in progress until development is complete.
Notes
forming part of Financial Statements
Note:
Additions for the year ended March 31, 2022 include assets of `99.96 crores purchased during August 24, 2021 to December 31, 2021
which is pertaining to PV undertaking. (refer note 45)
(e) Expected Completion schedule of intangible assets under development where cost or time
overrun has exceeded original plan
As at March 31, 2023
More than 3
Up to 1 year 1-2 years 2-3 years Total
years
Projects in progress
Project 1 - - - - -
Other Projects* 8.47 - - - 8.47
Integrated Report / 2022-23
(` in crores)
As at March 31, 2022
More than 3
Up to 1 year 1-2 years 2-3 years Total
years
Projects in progress
Project 1 97.81 - - - 97.81
Other Projects* 18.76 - - - 18.76
Projects temporarily suspended
Project 1 - - - 61.31 61.31
Project 2 - - - 209.04 209.04
116.57 - - 270.35 386.92
*Individual projects less than ` 50 crores have been clubbed together in other projects.
Original plan is considered as that plan which is approved and on the basis of which implementation progress is evaluated. Such original
plan includes management’s estimates and assumptions w.r.t future business, economy / industry and regulatory environments.
(b) Investments in subsidiaries, joint ventures and associates consist of the following:
(` in crores)
Face value per
Number unit Description As at March 31, 2023 As at March 31, 2022
(Fully Paid up)
Equity shares
i) Subsidiaries
Unquoted
9,417,000,000 10 Tata Motors Passenger Vehicles Limited 9,417.00 9,417.00
700,000,000 10 Tata Passenger Electric Mobility Limited 784.61 743.36
303,006,000 2 Tata Technologies Limited 224.10 224.10
53,059,549 10 TML Business Services Limited [Note 7 below] 254.92 434.65
45,000,000 10 TML CV Mobility Solutions Limited 45.00 0.05
7,900 - Tata Technologies Inc, (USA) 0.63 0.63
1,741,593,442 10 TMF Holdings Limited [Note 2 and 3 below] 4,028.95 3,594.95
Integrated Report / 2022-23
Notes
forming part of Financial Statements
(` in crores)
Face value per
Number unit Description As at March 31, 2023 As at March 31, 2022
(Fully Paid up)
10 Tata Motors Insurance Broking and Advisory
5,000,000 Services Ltd 19.31 19.31
- - TMNL Motor Services Nigeria Ltd - 0.00 #
ii) Associates
Quoted
2,982,214 10 Automobile Corporation of Goa Ltd 108.22 108.22
Unquoted
16,000 (TK) 1,000 NITA Co. Ltd (Bangladesh) 1.27 1.27
10 Tata Hitachi Construction Machinery Company
45,428,572 Private Ltd 238.50 238.50
52,333,170 10 Tata AutoComp Systems Ltd 77.47 425.46 77.47 425.46
(iv) Subsidiaries
Cumulative convertible preference shares (unquoted)
- - TMF Holdings Limited [Note 3 below] - 434.00
Cumulative Redeemable Preference shares
(unquoted)
1,354,195 100 TML Business Services Ltd 13.54 13.54
Total 27,976.80 27,917.45
# Less than ` 50,000
Notes:
(2) Includes option pricing value for call/ put option provided by the Company towards perpetual debt issued by
TMF Holdings Limited.
Integrated Report / 2022-23
(3) Converted 4,34,00,000 Cumulative convertible preference shares (unquoted) of ` 100 each into 9,33,00,000
Equity shares of `10 each in the ratio of 2.15:1 issued by TMF Holdings Limited.
(4) The Company has given a letter of comfort to Bank of China, Shanghai Branch for RMB 5 billion (`5,980.75
crores as at March 31, 2023) against loan granted by the bank to Jaguar Land Rover (China) Investment Co. Ltd.
(5) The Company has given a letter of comfort to State Bank of India, Bahrain for USD 100 million (`821.83 crores
as on March 31, 2023) against Credit Facility given to TML Holding PTE Ltd., Singapore and a letter of comfort
to Bank of Baroda, London for GBP 100 million (`1,016.45 crores as on March 31, 2023) against the SBLC Facility
337
(6) The Company has given a letter of comfort to Citi Corp International for USD 300 million (`2,465.48 crores as on
March 31, 2023) and USD 425 million (`3,492.76 crores as on March 31, 2023) to TML Holding PTE Ltd., Singapore
against ECB Bonds.
(7) Pursuant to the Scheme of Arrangement between, two wholly owned subsidiaries of the Company, viz., TML
Distribution Company Limited (TMLD) and TML Business Services Limited (TMLBSL) and the Company, under
order issued by NCLT dated March 11, 2022, with appointed date of April 1, 2021, TMLD has been merged
with TMLBSL. TMLBSL has issued 117,22,50,000 equity share of face value of `10 each fully paid-up in lieu of
22,50,00,000 equity shares of `10 each fully paid-up held by the Company in TMLD. Further, as per the scheme,
TMLBSL has done the reduction of its share capital by cancellation and extinguishment of 128,28,88,145 equity
shares of `10 each fully paid-up aggregating to `1,282.89 crores and has paid `131.83 crores to the Company for
such cancellation and extinguishment. The amount of `131.83 crores is return of capital.
7. Investments-non-current
(` in crores)
Face value per
Number unit (Fully Paid Description As at March 31, 2023 As at March 31, 2022
up)
Investment in equity shares measured at fair
value through other comprehensive income
Quoted
54,962,950 1 Tata Steel Ltd 574.37 718.49
Unquoted
75,000 1,000 Tata International Ltd 162.58 111.58
1,383 1,000 Tata Services Ltd 0.14 0.14
350 900 The Associated Building Company Ltd 0.01 0.01
1,03,10,242 100 Tata Industries Ltd 198.10 191.26
33,600 100 Kulkarni Engineering Associates Ltd - -
12,375 1,000 Tata Sons Pvt Ltd 85.34 95.20
2,25,00,001 10 Haldia Petrochemicals Ltd 125.78 199.80
2,40,000 10 Oriental Floratech (India) Pvt. Ltd - -
43,26,651 15 Tata Capital Ltd 58.45 22.41
50,000 10 NICCO Jubilee Park Ltd. 0.05 630.45 0.05 620.45
Total 1,204.82 1,338.94
Note:
a) Investment in equity shares measured at fair value through other comprehensive income also include:
Integrated Report / 2022-23
Face value
As at As at
Number per unit (Fully Description March 31, 2023 March 31, 2022
Paid up)
50 5 Jamshedpur Co-operative Stores Ltd. 250 250
16,56,517 (M$) 1 Tatab Industries Sdn. Bhd., (Malaysia) 1 1
4 25000 ICICI Money Multiplier Bond 1 1
100 10 Optel Telecommunications 1,995 1,995
338
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
(` in crores)
As at As at
b) March 31, 2023 March 31, 2022
(1) Book Value of quoted investments 574.37 718.49
(2) Book Value of unquoted investments 630.45 620.45
(3) Market Value of quoted investments 574.37 718.49
8. Investments-current
(` in crores)
Face value As at As at
Number Description
per unit March 31, 2023 March 31, 2022
Investments in Mutual funds measured at Fair value through profit
and loss
Unquoted
- - Mutual funds 3,142.96 5,143.08
Total 3,142.96 5,143.08
Note:
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Book Value of unquoted investments 3,142.96 5,143.08
(d) Others
Considered good 22.73 24.38
Credit impaired - 2.60
22.73 26.98
Less : Allowances for credit impaired balances - 22.73 (2.60) 24.38
Total 114.40 48.43
339
Notes
forming part of Financial Statements
Note: (` in crores)
As at As at
March 31, 2023 March 31, 2023
Dues from subsidiary company:
(a) Tata Motors Passenger Vehicles Limited - 19.69
(b) TML Business Services Ltd - 5.03
(c) Tata Motors (SA) (Proprietary) Ltd 1.11 1.08
(d) Tata Motors Nigeria Ltd - 0.20
(e) Jaguar Land Rover Ltd 0.06 0.67
(f) Tata Passenger Electric Mobility Limited - 0.44
(g) Tata Motors Finance Solutions Ltd 0.01 -
(h) TML Smart City Mobility Solutions Ltd 1.17 -
(i) TML Smart City Mobility Solutions J&K Private Ltd 0.22 -
(j) TML CV Mobility Solutions Limited 0.20 0.52
2.77 27.63
As at As at
March 31, 2023 March 31, 2022
(a) Derivative financial instruments 902.68 675.60
(b) Restricted deposits 5.21 8.62
(c) Finance lease receivable 367.15 399.01
(d) Government incentives 1,075.35 843.66
(e) Recoverable from suppliers 18.32 32.26
(f) Security deposits (net of allowances for credit impaired balances of `1.15 crores
and `1.15 crores as at March 31, 2023 and March 31, 2022, respectively) 35.19 32.38
(g) Others 1.33 0.99
Total 2,405.23 1,992.52
340
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
15. Inventories
(a) Accounting policy
Inventories are valued at the lower of cost and net realisable value. Cost of raw materials, components and
consumables are ascertained on a moving weighted average basis. Cost, including fixed and variable production
overheads, are allocated to work-in-progress and finished goods determined on a full absorption cost basis. Net
realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion
and selling expenses.
During the year ended March 31, 2023 and 2022, the Company recorded inventory write-down expenses of `32.21 crores and `25.25
crores, respectively.
Cost of inventories (including cost of purchased products) recognized as expense during the year ended March 31, 2023 and 2022
amounted to ` 54,083.75 crores and ` 43,334.20 crores, respectively.
* Includes `33.77 crores netted off in revenue (`32.26 crores for the year ended March 31, 2022)
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
Note:
Earmarked balances with banks as at March 31, 2023 of `270.00 crores (as at March 31, 2022 `135.00 crores) is held as security in relation
to repayment of borrowings.
(iii) 30,00,00,000 Convertible Cumulative Preference shares of `100 each 3,000.00 3,000.00
(as at March 31, 2022: 30,00,00,000 shares of `100 each)
Total 4,000.00 4,000.00
343
Notes
forming part of Financial Statements
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(b) Issued: [Note (h)]
(i) 3,32,18,36,884 Ordinary shares of `2 each 664.37 664.23
(as at March 31, 2022: 3,32,11,54,566 Ordinary shares of `2 each)
(ii) 50,87,36,110 'A' Ordinary shares of `2 each 101.75 101.75
(as at March 31, 2022: 50,87,36,110 ‘A’ Ordinary shares of `2 each)
Total 766.12 765.98
the courts / forums by third parties for which final order is awaited and hence kept in abeyance.
The Company has two classes of shares – the Ordinary shares and the ‘A’ Ordinary shares both of `2 each
(together referred to as shares). In respect of every Ordinary share (whether fully or partly paid), voting rights
shall be in the same proportion as the capital paid up on such Ordinary share bears to the total paid up
Ordinary share capital of the Company. In case of every ‘A’ Ordinary share, if any resolution is put to vote on
344
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
a poll or by postal ballot at any general meeting of shareholders, the holder shall be entitled to one vote for
every ten ‘A’ Ordinary shares held as per the terms of its issue and if a resolution is put to vote on a show of
hands, the holder of ‘A’ Ordinary shares shall be entitled to the same number of votes as available to holders
of Ordinary shares.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting. The holders of ‘A’ Ordinary shares shall be entitled to receive dividend for each
financial year at five percentage point more than the aggregate rate of dividend declared on Ordinary shares
for that financial year.
In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholdings.
(ii) American Depository Shares (ADSs) and Global Depository Shares (GDSs) :
The Company notified the New York Stock Exchange (the “NYSE”) on November 9, 2022 of its intent to: (i)
voluntarily delist its American Depositary Shares (the “ADSs”), each representing five (5) Ordinary Shares of
the Company, par value of `2 per share (the “Ordinary Shares”), from the NYSE; (ii) deregister such ADSs,
its Ordinary Shares underlying such ADSs, and its ‘A’ Ordinary Shares, par value of `2 per share, issued in
connection with the 2015 rights offering by the Company (“‘A’ Ordinary Shares”, and together with the ADSs
and the Ordinary Shares underlying such ADSs, the “Securities”) from the U.S. Securities and Exchange
Commission (the “SEC”); and (iii) terminate its reporting obligations under the U.S. Securities Exchange Act
of 1934, as amended (the “Exchange Act”).
Accordingly, the Company filled a Form 25 with the SEC on January 13, 2023 to delist its ADSs from the
NYSE and the last trading day of the ADSs on the NYSE was January 23, 2023. Once the Company satisfies
the conditions for deregistration, the Company will file a Form 15F with the SEC to deregister the Securities
and to terminate its reporting obligations under the Exchange Act. Thereafter, all the Company’s reporting
obligations under the Exchange Act will be suspended. The deregistration and termination of its reporting
obligations under the Exchange Act is effective ninety (90) days after filing of the Company’s Form 15F.
(j) Number of shares held by each shareholder holding more than 5 percent of the issued share capital :
As at March 31, 2023 As at March 31, 2022
% of Issued % of Issued
No. of Shares No. of Shares
Share Capital Share Capital
Share Capital Share Capital
(i) Ordinary shares :
(a) Tata Sons Private Limited 43.72% 1,45,21,13,801 43.73% 1,45,21,13,801
(b) Life Insurance Corporation Of India 5.21% 173,087,356 4.75% 157,782,041
(c) Citibank N.A. as Depository * * # 17,09,78,800
Integrated Report / 2022-23
# held by Citibank, N.A. as depository for American Depository Receipts (ADRs) and Global Depository Receipts (GDRs)
* Less than 5%
345
Notes
forming part of Financial Statements
Notes
forming part of Financial Statements
c) Securities premium
Integrated Report / 2022-23
The amount received in excess of face value of the equity shares is recognised in Securities Premium.
d) Retained earnings
Retained earnings are the profits that the Company has earned till date, add/(less) any transfers from/(to)
general reserve, securities premium and debenture redemption reserve, dividends or other distributions paid
to shareholders. Retained earnings includes re-measurement gain/(loss) on defined benefit obligations, net of
taxes that will not be reclassified to Profit and Loss.
347
Notes
forming part of Financial Statements
e) Capital reserve
The capital reserve represents the excess of the identifiable assets and liabilities over the consideration paid/
received or vice versa in a common control sale/transfer of business/investment.
e) Dividends
Any dividend declared by Tata Motors Limited is based on the profits available for distribution as reported in
the statutory financial statements of Tata Motors Limited (standalone) prepared in accordance with Generally
Accepted Accounting Principles in India or Ind AS. Indian law permits the declaration and payment of dividend
out of profits for the year or previous financial year(s) as stated in the statutory financial statements of Tata
Motors Limited (Standalone) prepared in accordance with Generally Accepted Accounting Principles in India,
or Ind AS after providing for depreciation in accordance with the provisions of Schedule II to the Companies
Act. However, in the absence of the said profits, it may declare dividend out of free reserves, subject to certain
conditions as prescribed under the Companies (Declaration and Payment of Dividend) Rules, 2014. Accordingly,
in certain years the net income reported in this Financial Statements may not be fully distributable.
For the year ended March 31, 2023, the Board of Directors has recommended a final dividend of ` 2.00 per
share on Ordinary shares and ` 2.10 per share on 'A' Ordinary shares subject to approval from shareholders at
the Annual General Meeting, and if approved, would result in a cash outflow of ` 771.07 crores (March 31, 2022:
Nil).
Unsecured:
Integrated Report / 2022-23
(a) Privately placed Non-Convertible Debentures (refer note 23 I (ii) below) 2,096.88 2,895.88
(b) Term loan from banks
(i) Buyer's line of credit (at floating interest rate) (refer note 23 I (v) below) 1,850.00 2,883.33
(ii) External commercial borrowings (ECB) 1,943.80 1,788.35
(at floating interest rate) (refer note 23 I (iv) below)
(c) Senior Notes (refer note 23 I (iii) below) 4,508.71 4,150.79
10,399.39 11,718.35
Total 10,445.70 14,102.74
348
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
Note:
(` in crores)
As at As at
Details of Current maturities of long-term borrowings : March 31, 2023 March 31, 2022
(i) Non Convertible Debentures (Unsecured) (refer note I (ii) below) 800.00 899.94
(ii) Non Convertible Debentures (Secured) (refer note I (ii) below) 999.82 -
(iii) Loans from financial institutions (Secured) - 1,050.00
(iv) Buyers Credit (Capex) (Unsecured) (refer note I (v) below) 700.00 1,175.00
2,499.82 3,124.94
Secured :
8.80% Non-Convertible Debentures (2023) May 26, 2023 1,000.00
Debt issue cost (0.18)
Total 999.82
The 8.80% Non-convertible Debentures are secured by a charge over Company's leasehold land together with building structures,
plant and machinery, fixtures and other assets.
349
Notes
forming part of Financial Statements
(` in crores)
As at
Unsecured : Redeemable on March 31, 2023
8.50% Non-Convertible Debentures (2027) January 29, 2027 250.00
8.50% Non-Convertible Debentures (2026) December 30, 2026 250.00
6.60% Non-Convertible Debentures (2026) May 29, 2026 500.00
6.95% Non-Convertible Debentures (2026) March 31, 2026 500.00
9.77% Non-Convertible Debentures (2024) September 12, 2024 200.00
9.81% Non-Convertible Debentures (2024) August 20, 2024 300.00
9.54% Non-Convertible Debentures (2024) June 28, 2024 100.00
9.35% Non-Convertible Debentures (2023) November 10, 2023 400.00*
9.31% Non-Convertible Debentures (2023) September 29, 2023 200.00*
9.27% Non-Convertible Debentures (2023) June 30, 2023 200.00*
Debt issue cost (3.12)
Total 2,896.88
* Classified as Current maturities of long-term borrowings (refer note 23) being maturity before March 31, 2024.
(iii) Schedule of repayment of Senior Notes: (` in crores)
Amount As at As at
Redeemable on Currency
(in million) March 31, 2023 March 31, 2022
5.750% Senior Notes October 30, 2024 USD 250 2,049.47 1,886.33
5.875% Senior Notes May 20, 2025 USD 300 2,459.24 2,264.46
4,508.71 4,150.79
(iv) The external commercial borrowings of USD 250 million (`1,943.80 crores) bearing floating interest rate of 3 months
LIBOR+128bps is due for repayment in June 2025.
(v) The buyer's line of credit from banks bearing floating interest ranging from 6.30% to 8.80%, amounting to `1,850.00
crores is repayable within a maximum period of seven years from the drawdown dates. All the repayments are
due from period ending September 30, 2024 to November 30, 2026. The Buyer’s line of credit of `700.00 crores
classified under Short Term Borrowings-current being maturity before March 31, 2024.
(ii) Inter-corporate deposits from subsidiaries and associates are unsecured bearing interest rate at 5% to 7.05%.
Commercial paper are unsecured short-term papers issued at discount bearing no coupon interest. The yield on
(iii)
commercial paper issued by the Company ranges from 4.58% to 4.67%
Loan from bank is availed as per the requirements of the Company at interest rates mutually agreed at the time of
(iv)
drawing the facility with interest rates varying from 5.90% - 7.00%
350
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
III. Collateral
Assets pledged as collateral/security against borrowings (` in crores)
As at As at
March 31, 2023 March 31, 2022
Inventory - 648.00
Property, plant and equipment 1,250.00 4,250.00
Total 1,250.00 4,898.00
(i) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
Annual disclosure for reporting of fund raising of issuance of Debt Securities by Large Corporate :
(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
(i) Incremental borrowing done (a) - 2,000.00
(ii) Mandatory borrowing to be done through issuance of debt securities (b) = (25% of a) - 500.00
(iii) Actual borrowings done through debt securities (c) - 1,000.00
(iv) Shortfall in the mandatory borrowing through debt securities, if any (d) = (b) - (c) - -
(v) Reasons for short fall, if any, in mandatory borrowings through debt securities - -
(` in crores)
As at March 31, 2022
Overdue
Not due Up to 1 1-2 2-3 More than Total
year years years 3 years
Outstanding dues of micro and small enterprises
(a) Disputed dues - - - - - -
(b) Undisputed dues 87.17 40.55 2.00 5.69 10.70 146.11
Total 87.17 40.55 2.00 5.69 10.70 146.11
Balance as at March 31, 2022 4,973.85 1,069.68 10.44 11.03 37.10 6,102.10
Notes
forming part of Financial Statements
Note:
Includes `19.54 crores (`21.49 crores as at March 31, 2022) outstanding towards principal and interest provision on dues of micro enterprises
and small enterprises as per MSMED ACT 2006.
27. Provisions
(a) Accounting policy
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. When the effect of the time value of money ismaterial, provisions are determined by discounting the
expected future cash flows using a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability.
Estimates are made of the expected reimbursement claim based upon historical levels of recoveries from supplier,
Integrated Report / 2022-23
adjusted for inflation and applied to the population of vehicles under warranty as on Balance Sheet date. Supplier
reimbursements are recognised as separate asset.
(c) Provisions-current
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(a) Warranty 389.84 572.96
(b) Employee benefits obligations 14.53 11.85
(c) Others 4.52 23.25
Total 408.89 608.06
Note:
Warranty provision movement (` in crores)
Year ended
March 31, 2023
Warranty
Balance at the beginning 1,275.62
Provision made during the year 1,059.99
Provision used during the year (1,104.32)
Impact of discounting (124.50)
Balance at the end 1,106.79
Current 389.84
Non-current 716.95
Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences
Integrated Report / 2022-23
between the carrying values of assets and liabilities and their respective tax bases, and unutilised business loss and
depreciation carry-forwards and tax credits. Such deferred tax assets and liabilities are computed separately for
each taxable entity. Deferred tax assets are recognised to the extent it is probable that future taxable income will
be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards
and unused tax credits could be utilised. The carrying amount of deferred tax assets is reviewed at each reporting
date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
354
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period
when the asset is realised or the liability is settled, based on the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. Current and deferred tax assets and liabilities are offset when
there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate
to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and
liabilities on a net basis. The extent to which deferred tax assets can be recognised is based on an assessment of
the probability that future taxable income will be available against which the deductible temporary differences and
tax loss carry-forwards can be utilised.
Deferred tax liabilities on taxable temporary differences arising from interests in joint arrangements are not
recognised if the Company is able to control the timing of the reversal and it is probable that the temporary
difference will not reverse in the foreseeable future.
(b) The reconciliation of income tax expense calculated as per tax rates applicable to individual entities with income tax expense is as
follows:
(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
Profit/(Loss) before tax from continuing operations 1,254.80 (1,640.05)
Profit/(Loss) before tax from discontinued operations - 392.51
Profit/(Loss) before tax 1,254.80 (1,247.54)
Income tax expense at tax rates applicable to individual entities 315.81 (440.02)
Provision/reversal for loan given to/investment in/cost of closure of subsidiary companies 1.15 (244.31)
Undistributed earnings of joint operations 67.61 47.41
Deferred tax assets recognised on Unabsorbed Depreciation and others (refer note 2
below) (1,757.24) -
Deferred tax assets recognised on Long term capital loss (refer note 2 below) (150.48) -
Utilisation/credit of unrecognised tax losses, unabsorbed depreciation and other tax
benefits (364.72) (585.31)
Profit on sale of investments in a subsidiary company and other investments - (0.88)
Impact of change in rates on moving to new tax regime (refer note 1 and 2 below) 292.30 -
Profit on Sale of PV undertaking - 1,282.92
Others 122.24 83.51
Income tax expense reported in statement of profit and loss (1,473.33) 143.32
Note:
(1) The company has opted for the New Tax Regime inserted by section 115BAA of the Income Tax Act, 1961 (“Act”) and
enacted by the Taxation Laws (Amendment) Ordinance, 2019 ("the Ordinance") which is applicable from Financial
year beginning April 1, 2019. It has accordingly applied the tax rate as applicable under the provision of section
115BAA of the Act, in the financial statement for the year ended March 31, 2023.
Integrated Report / 2022-23
(2) During the year ended March 31, 2023, the Company recognised Deferred Tax Assets on previously unrecognised
unused unabsorbed depreciation and long term capital losses incurred in the current year based on the probability
of sufficient taxable profit in future periods, mostly those arising from planned divestments which will yield capital
gains against which such unabsorbed depreciation and capital loss will be set off. Accordingly, `1,615.42 crores
deferred tax has been recognised as at March 31, 2023.
355
Notes
forming part of Financial Statements
(c) Significant components of deferred tax assets and liabilities for the year ended March 31, 2023 are as follows:
(` in crores)
Impact of change
Recognised
in tax rates Recognised
in
Opening recognised in in/ Closing
statement
balance statement of profit reclassified balance
of profit and
and loss (Refer from OCI
loss
Note 28 (b) (1)
Deferred tax assets:
Unabsorbed depreciation 2,221.74 (873.80) 1,485.39 - 2,833.33
Other tax losses - Long term capital loss - - 150.49 - 150.49
Expenses deductible in future years:
- provisions, allowances for doubtful receivables and
others 404.47 (113.05) 22.78 - 314.20
Compensated absences and retirement benefits 158.29 (42.35) 24.90 (4.51) 136.33
Derivative financial instruments 106.48 (29.78) 108.51 9.93 195.14
Unrealised profit on inventory (0.84) - (0.97) - (1.81)
Others 100.69 (27.80) (2.74) - 70.15
Total deferred tax assets 2,990.83 (1,086.78) 1,788.36 5.42 3,697.83
Deferred tax liabilities:
Property, plant and equipment 2,075.35 (564.86) 33.42 - 1,543.91
Intangible assets 787.61 (220.62) (24.72) - 542.27
Undistributed earnings in joint operations 90.93 40.07 8.13 * - 139.13
Others 210.67 (49.07) (75.70) (39.47) 46.42
Total deferred tax liabilities 3,164.56 (794.48) (58.87) (39.47) 2,271.73
Net Deferred tax assets / (liabilities) (173.73) (292.30) 1,847.23 44.89 1,426.10
Deferred tax assets 1,477.26
Deferred tax liabilities (51.16)
As at March 31, 2023 unrecognised deferred tax assets expire unutilised based on the year of origination as follows:
2028 829.14
Thereafter 456.26
356
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
Significant components of deferred tax assets and liabilities for the year ended March 31, 2022 are as follows:
(` in crores)
Movement
due to
Adjustments
assets and
due to
Recognised Recognised in/ liabilities
Opening conversion Closing
in profit and reclassified from transferred
balance of Joint balance
loss OCI to Tata
Operation to
Motors
Joint Venture
Passenger
Vehicles Ltd
Deferred tax assets:
Unabsorbed depreciation 2454.41 (115.18) - (40.09) (77.40) 2,221.74
Business loss carry forwards 1715.83 13.30 - - (1,729.13) -
Expenses deductible in future years: -
- provisions, allowances for doubtful
receivables and others 488.57 (11.09) - (0.68) (72.33) 404.47
Compensated absences and retirement
benefits 159.35 (21.51) 20.64 (0.19) - 158.29
Minimum alternate tax carry-forward 0.77 - - - - 0.77
Derivative financial instruments 119.9 (12.85) (0.57) - - 106.48
Unrealised profit on inventory 2.97 1.10 - (4.91) - (0.84)
Others 119.59 (2.37) - (16.05) (1.25) 99.92
Total deferred tax assets 5,061.39 (148.60) 20.07 (61.92) (1,880.11) 2,990.83
Deferred tax liabilities:
Property, plant and equipment 2603.99 44.42 - (55.55) (517.52) 2,075.35
Intangible assets 2451.61 (300.13) - (1.28) (1,362.59) 787.61
Undistributed earnings in joint operations 222.28 47.41 - (178.76) - 90.93
Others 50.01 107.70 52.97 - - 210.67
Total deferred tax liabilities 5,327.89 (100.60) 52.97 (235.59) (1,880.11) 3,164.55
Deferred tax liabilities (266.50) (48.00) (32.90) 173.67 - (173.72)
Note:
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(a) Contract liabilities
Opening contract liabilities 1,353.15 1,452.35
Amount recognised in revenue (498.54) (363.24)
Assets transferred to Tata Motors Passenger Vehicles Limited - (383.84)
Amount received in advance during the year 881.12 800.00
Amount refunded to customers (75.31) (152.12)
Closing contract liabilities 1,660.42 1,353.15
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Advances received from customers Current 749.89 763.48
Deferred revenue Current 272.95 158.72
Non-current 637.58 430.95
1,660.42 1,353.15
Performance obligations in respect of amount received in respect of future maintenance service and extended warranty will be fulfilled
over a period of 6 years from year ending March 31, 2023 till March 31, 2029.
(b) Government incentives include `167.96 crores as at March 31, 2023 (`143.16 crores as at March 31, 2022) grants
relating to property, plant and equipment related to duty saved on import of capital goods and spares under
the Exports Promotion Capital Goods (EPCG) scheme. Under such scheme, the Company is committed to
export prescribed times of the duty saved on import of capital goods over a specified period of time. In case
Integrated Report / 2022-23
such commitments are not met, the Company would be required to pay the duty saved along with interest to the
regulatory authorities.
358
Notes
forming part of Financial Statements
Note:
(1) Includes variable marketing expenses netted off against revenue (14,222.59) (9,963.06)
(2) Includes exchange loss (net) on hedges reclassified from hedge reserve to statement of
profit and loss (0.44) (0.98)
Government grants are recognised when there is a reasonable assurance that the Company will comply with the
relevant conditions and the grant will be received.
Government grants are recognised in the statement of profit and loss, either on a systematic basis when the
Company recognises, as expenses, the related costs that the grants are intended to compensate or, immediately
if the costs have already been incurred. Government grants related to assets are deferred and amortised over
the useful life of the asset. Government grants related to income are presented as an offset against the related
expenditure, and government grants that are awarded as incentives with no ongoing performance obligations to
the Company are recognised as income in the period in which the grant is received.
Integrated Report / 2022-23
360
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
* The amount of `20.46 crores and `16.73 crores has accrued for the year ended March 31, 2023 and 2022, respectively towards share
based payments.
determined by NRC. The performance is measured over vesting period of the options granted which ranges from 3
to 5 years. The performance measures under this scheme include growth in sales, earnings and free cash flow. The
options granted under this scheme is exercisable by employees till one year from date of its vesting. The Company
has granted options at an exercise price of `345/-. Option granted will vest equally each year starting from three
years from date of grant up to five years from date of grant. Number of shares that will vest range from 0.5 to 1.5 per
option granted depending on performance measures.
361
Notes
forming part of Financial Statements
The Company has estimated fair value of options using Black Scholes model. The following assumptions were used for calculation
of fair value of options granted.
Expected volatility during the expected term of the options is based on historical volatility of the observed market prices of the
Company’s publicly-traded equity shares during a period equivalent to the expected term of the options.
As per the scheme, the number of shares that will vest is conditional upon certain performance measures
determined by Nomination and Remuneration Committee (NRC). The performance is measured over vesting period
of the options granted. The performance measures under this scheme include growth in sales, earnings and free
cash flow. The options granted under this scheme is exercisable by employees till one year from date of its vesting.
The Company has granted options at an exercise price of `338/- for ESOs and `2/- for PSUs. Option granted will
vest after three years from date of grant. Number of shares that will vest range from 0.5 to 1.2 per option granted
depending on performance measures.
Integrated Report / 2022-23
362
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
PSUs and ESOs are excercisable within one year from the date of vesting.
Year ended March 31, 2023 Year ended March 31, 2022
Reconciliation of outstanding ESOs/ PSUs ESOs PSUs ESOs PSUs
No of options No of options No of options No of options
(i) Option exercisable at the beginning of the year 839,650 964,569 - -
(ii) granted during the year - 659,186 839,650 964,569
(iii) forfeited during the year (78,822) (92,349) - -
(iv) exercised during the year - - - -
(v) Option exercisable at the end of the year 760,828 1,531,406 839,650 964,569
(vi) Remaining contractual life 16 Months 28 Months 28 Months 28 Months
The Company has estimated fair value of options using Black Scholes model. The following assumptions were used for
calculation of fair value of options granted.
Assumption factor
Granted during Year
Granted during
ended March 31,
Year ended March 31, 2022
2023
PSUs ESOs PSUs
Risk free interest rate 5.3% 5.3% 5.3%
Expected life of option 4 years 3.8 years 3.8 years
Expected volatility 52.0% 50.7% 50.7%
Share price 453.40 376.40 376.40
Expected volatility during the expected term of the options is based on historical volatility of the observed market prices
of the Company’s publicly-traded equity shares during a period equivalent to the expected term of the options.
Tata Motors Limited and its Joint operation have an obligation towards gratuity, a defined benefit retirement
plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at
retirement, death while in employment or on termination of employment of an amount equivalent to 15 to
30 days salary payable for each completed year of service. Vesting occurs upon completion of five years
of service. Tata Motors Limited makes annual contributions to gratuity funds established as trusts. Tata
Motors Limited account for the liability for gratuity benefits payable in the future based on an actuarial
valuation.
Integrated Report / 2022-23
(ii) Superannuation
Tata Motors Limited have two superannuation plans, a defined benefit plan and a defined contribution
plan. An eligible employee on April 1, 1996 could elect to be a member of either plan.
Employees who are members of the defined benefit superannuation plan are entitled to benefits
depending on the years of service and salary drawn. The monthly pension benefits after retirement range
363
Notes
forming part of Financial Statements
(` in crores)
Pension Benefits * Post retirement medical Benefits
As at As at As at As at
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Change in defined benefit obligations :
Defined benefit obligation, beginning of the year 1,103.17 1,189.05 249.65 171.78
Current service cost 66.60 70.07 11.91 7.79
Interest cost 75.36 74.31 17.30 11.03
Remeasurements (gains) / losses
Actuarial (gains)/.losses arising from changes in
demographic assumptions (0.81) 4.25 0.30 5.86
Actuarial losses arising from changes in financial
assumptions 11.48 7.12 13.58 26.24
Actuarial (gains) / losses arising from changes in
experience adjustments 14.22 77.40 19.50 32.70
Transfer out of liability (13.91) (256.65) (2.24) (11.83)
Benefits paid from plan assets (52.74) (67.75) - -
Benefits paid directly by employer (10.22) (10.26) (14.97) (16.87)
Past service cost- plan amendments - 30.47 32.84 22.94
Adjustments due to conversion of Joint Operation to Joint
Venture - (14.84) - -
Defined benefit obligation, end of the year 1,193.15 1,103.17 327.87 249.65
Notes
forming part of Financial Statements
(` in crores)
Pension Benefits * Post retirement medical Benefits
As at As at As at As at
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Amount recognised in the balance sheet consists of
Present value of defined benefit obligation 1,193.15 1,103.17 327.87 249.65
Fair value of plan assets 1,052.14 915.46 - -
(141.01) (187.71) (327.87) (249.65)
Asset ceiling (3.69) (3.34) - -
Net liability (144.70) (191.05) (327.87) (249.65)
Amounts in the balance sheet:
Non–current assets 31.91 0.16 - -
Non–current liabilities (176.61) (191.21) (327.87) (249.65)
Net liability (144.70) (191.05) (327.87) (249.65)
Information for funded plans with a defined benefit obligation in excess of plan assets:
(` in crores)
Pension Benefits *
As at As at
March 31, 2023 March 31, 2022
Defined benefit obligation 38.51 887.73
Fair value of plan assets 34.08 863.41
Information for funded plans with a defined benefit obligation less than plan assets: (` in crores)
Pension Benefits *
As at As at
March 31, 2023 March 31, 2022
Defined benefit obligation 982.47 48.87
Fair value of plan assets 1,018.06 52.05
Net pension and post retirement medical cost consist of the following components:
(` in crores)
Integrated Report / 2022-23
Other changes in plan assets and benefit obligation recognised in other comprehensive income. (` in crores)
Post retirement medical
Pension Benefits *
Benefits
Year ended March 31, Year ended March 31,
2023 2022 2023 2022
Remeasurements
Return on plan assets, (excluding amount included in net Interest
expense) 2.25 (9.13) - -
Actuarial (gains)/losses arising from changes in demographic
assumptions (0.81) 4.25 0.30 5.86
Actuarial (gains)/losses arising from changes in financial
assumptions 11.48 7.12 13.58 26.24
Asset ceiling 0.35 0.49 - -
Actuarial (gains) / losses arising from changes in experience
adjustments on plan liabilities 14.22 77.40 19.50 32.70
Total recognised in other comprehensive income 27.49 80.12 33.38 64.81
Total recognised in statement of comprehensive income 102.34 184.57 95.43 106.57
The assumptions used in accounting for the pension and post retirement medical plans are set out below:
Pension Benefits * Post retirement medical Benefits
As at March 31, As at March 31,
2023 2022 2023 2022
Discount rate 7.1% - 7.3% 6.5% - 7.1% 7.3% 7.2%
Rate of increase in compensation level of covered
employees 6.0% - 12.0% 6.0% - 9.0% NA NA
Increase in health care cost NA NA 6.0% 6.0%
Plan Assets
The fair value of Company’s pension plan asset as of March 31, 2023 and 2022 by category are as follows:
Pension Benefits *
As at As at
March 31, 2023 March 31, 2022
Asset category:
Cash and cash equivalents 10.6% 2.5%
Debt instruments (quoted) 67.3% 66.6%
Debt instruments (unquoted) 0.5% 0.0%
Equity instruments (quoted) 8.5% 8.0%
Deposits with Insurance companies 13.1% 22.8%
Integrated Report / 2022-23
100.0% 100.0%
* Includes Gratuity, Superannuation and BKY
The Company’s policy is driven by considerations of maximising returns while ensuring credit quality of the
debt instruments. The asset allocation for plan assets is determined based on investment criteria prescribed
under the Indian Income Tax Act, 1961, and is also subject to other exposure limitations. The Company evaluates
the risks, transaction costs and liquidity for potential investments. To measure plan asset performance, the
Company compares actual returns for each asset category with published bench marks.
368
1-141 142-304 305-551
Integrated Report Statutory Reports Financial Statements
Notes
forming part of Financial Statements
The weighted average duration of the defined benefit obligation as at March 31, 2023 is 10.3 years ( March 31,
2022 : 11.7 years).
The Company expects to contribute `59.54 crores to the funded pension plans in the year ending March 31,
2024.
The table below outlines the effect on the service cost, the interest cost and the defined benefit obligation in
the event of a decrease/increase of 1% in the assumed rate of discount rate, salary escalation and health care
cost:
(ii) On November 4, 2022, the Hon’ble Supreme Court of India, in the case of Employees’ Provident Fund Organisation
and Anr. Etc. vs. Sunil Kumar B. and Ors. Etc., passed a judgment upholding the validity of the 2014 amendment
to the Employees’ Pension Scheme 1995 and allowed the members of statutory pension fund as on September
1, 2014, to exercise the joint option for contribution into the pension fund beyond the statutory limit. The Hon’ble
Supreme Court has clearly laid down that it was not addressing the case of the exempted establishments in
the said judgment.
The Company has been operating its provident fund and pension scheme as an exempted establishment.
The Company has been legally advised that due to the incurrence of losses for three consecutive years, the
Company has lost its provident fund and pension fund exemption status w.e.f. April 1, 2022. While the Employees
Provident Fund Organization (“EPFO”) has already accepted the transfer of entire Provident Fund/ corpus into
its statutory provident fund, the Company is still maintaining the pension fund, as an ad interim measure, since
EPFO has still not accepted the transfer of pension fund/ corpus to its statutory pension fund.
Pending the transfer of the pension fund, the Company had communicated to its employees that if they wish
to avail the option of contributing beyond the statutory limit, they may choose to apply on the EPFO portal
to exercise the option, subject to EPFO accepting the joint option. This is also subject to EPFO’s decision on
applicability, calculation formula, contribution, amount of higher pension and transfer of corpus from statutory
provident fund to the statutory pension fund. The EPFO, in compliance with the Supreme Court judgment, has
issued various circulars, calling upon eligible pensioners to exercise joint option, however, with no mention with
Integrated Report / 2022-23
Considering all of the above, and more particularly the fact that the EPFO is in the process of providing clarity on
various key elements referred to above, the non-applicability of the Supreme Court judgement to exempted
establishments and the legal advice on status of the exemption, the Company believes that no provision is
warranted on this matter as of March 31, 2023.
369
Notes
forming part of Financial Statements
Provident Fund
The following tables set out the funded status of the defined benefit provident fund plan of Tata Motors Limited and Joint Operation
and the amounts recognized in the Company's financial statements.
(` in crores)
Year ended Year ended
Particulars March 31, 2023 March 31, 2022
Change in benefit obligations:
Defined benefit obligations at the beginning 4,040.00 4,320.88
Balance transferred to government managed provident fund (3,918.93) -
Service cost 4.10 125.22
Employee contribution 7.30 287.68
Acquisitions (credit) / cost - (799.07)
Transfer in / Transfer out 1.29 -
Interest expense 8.85 353.32
Actuarial (gains) / losses arising from changes in experience adjustments on plan liabilities 1.58 (78.83)
Actuarial (gains) / losses arising from demographic assumptions - 3.31
Actuarial (gains) / losses arising from changes in financial assumptions (4.01) 143.83
Benefits paid (5.53) (316.32)
Defined benefit obligations at the end 134.65 4,040.00
As at As at
March 31, 2023 March 31, 2022
Amount recognised in the balance sheet consists of
Present value of defined benefit obligation 134.65 4,040.00
Integrated Report / 2022-23
Notes
forming part of Financial Statements
(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
Net periodic cost for Provident Fund consists of following components:
Service cost 4.10 125.22
Net interest cost / (income) 0.27 5.48
Net periodic cost 4.37 130.70
Other changes in plan assets and benefit obligation recognised in other comprehensive income
(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
Remeasurements
Return on plan assets, (excluding amount included in net Interest expense) 2.99 (227.47)
Actuarial (gains) / losses arising from changes in experience adjustments on plan liabilities 1.58 (78.83)
Actuarial (gains) / losses arising from changes in financial assumptions (4.01) 143.83
Actuarial (gains) / losses arising from demographic assumptions - 3.31
Effect of asset ceiling - 71.90
Total recognised in other comprehensive income 0.56 (87.26)
Total recognised in statement of profit and loss and other comprehensive income 4.93 43.44
The assumptions used in determining the present value obligation of the Provident Fund is set out below:
As at As at
Particulars March 31, 2023 March 31, 2022
Discount rate 7.3% 7.1%
Expected rate of return on plan assets 8.5% 8.0%
Remaining term to maturity of portfolio (years) 19.0 13.5
The breakup of the plan assets into various categories as at March 31, 2023 is as follows:
As at As at
Particulars March 31, 2023 March 31, 2022
Central and State government bonds - 42.7%
Government debt instruments 50.7% -
Other debt instruments 40.1% -
Equity instruments 9.2% -
Public sector undertakings and Private sector bonds - 32.3%
Others - 25.0%
Total 100.0% 100.0%
Integrated Report / 2022-23
The asset allocation for plan assets is determined based on investment criteria prescribed under the relevant regulations.
As at March 31, 2023, the defined benefit obligation would be affected by approximately `10.37 crores on account of a 1.00% decrease
in the expected rate of return on plan assets.
The Company expects to contribute `12.55 crores to the defined benefit provident fund plan in Fiscal 2024.
371
Notes
forming part of Financial Statements
(ii) The Company's contribution to defined contribution plan aggregated to `179.60 crores and `77.79 crores for the years ended
March 31, 2023 and 2022, respectively as below:
(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
Superannuation 16.61 18.36
Provident fund 124.67 6.55
Family pension 38.32 52.88
179.60 77.79
Notes
forming part of Financial Statements
Note:
Works operation and other expenses include:
(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
(a) Auditors' Remuneration (excluding GST)
(i) Audit Fees 5.37 5.51
(ii) Audit fees for financial statements as per IFRS (including SOX certification) ^ 2.00 3.39
(iii) In other Capacities :
Tax Audit / Transfer Pricing Audit 0.53 0.58
Taxation Matters 0.05 0.05
(iv) Other Services 0.27 0.38
(v) Reimbursement of travelling and out-of-pocket expenses 1.27 0.09
^ Amount paid to KPMG Assurance and Consulting Services LLP
(b) Cost Auditors' Remuneration (excluding GST)
Cost Audit Fees 0.25 0.25
(c) Corporate Social Responsibility (CSR) expenditure
(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
Amount required to be spent by the Company during the year - -
Amount of expenditure incurred on*:
(i) Construction/acquisition of any assets - -
(ii) On purposes other than (i) above 20.81 23.70
Shortfall at the end of the year - -
Total of previous year shortfall - -
Reason for shortfall NA NA
Nature of CSR activities Education, skilling, health, environmental sustainability, Rural Development, COVID-19 relief activities
*spent by Tata Motors Ltd on standalone basis excluding interest in the joint operations, towards various schemes of Corporate Social
Responsibility (CSR) as prescribed under Section 135 of the Companies Act, 2013
(d) Remuneration payable to non- executive independent directors aggregating `5.50 crores (`2.35 crores for the year ended March
31, 2022) includes `3.28 crores (`Nil for the year ended March 31, 2022) of remuneration in respect of Mr. O P Bhatt `0.88 crores, Ms.
Hanne Birgitte Sorensen `0.88 crores, Mr. Mitsuhiko Yamashita `0.63 crores and Mr. Al Noor Ramji `0.89 crores, which are subject to
approval of shareholders.