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TATA MOTORS - DVR Ltd.

BSE: 570001 | NSE: TATAMTRDVR |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: IN9155A01020 | SECTOR: Auto Ancillaries

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Oct 06, 11:38
201.50 3.45 (1.74%)
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30-Day
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  • Prev. Close

    198.05

  • Open Price

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  • Bid Price (Qty.)

    201.60 (1)

  • Offer Price (Qty.)

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NSE Live

Oct 06, 11:38
201.65 3.40 (1.72%)
Volume
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2,737,070
10-Day
2,886,302
30-Day
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636,402
  • Prev. Close

    198.25

  • Open Price

    201.80

  • Bid Price (Qty.)

    201.65 (214)

  • Offer Price (Qty.)

    201.80 (205)

Annual Report

For Year :
2022 2021 2019 2017 2016 2015 2014 2013 2012

Auditor's Report

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Tata Motors Limited (the Company) and its joint operations, which comprise the standalone balance sheet as at 31 March 2022, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of report of other auditor on separate financial information of one joint operation as was audited by the other auditor, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, and its loss and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us along with the consideration of report of the other auditor referred to in the Other Matters section below, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of matter

We draw attention to Note 2(c) of the standalone financial statements, which describes in detail the economic and social consequences/ disruption the Company is facing as a result of COVID-19 which is impacting supply chains / consumer demand / financial markets / commodity prices / personnel available for work. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Description of Key Audit Matter

Transfer of Passenger Vehicle Undertaking (PV Undertaking)

The key audit matter

How the matter was addressed in our audit

During the current year, the Company has transferred its PV Undertaking

In view of the significance of the matter we applied the following audit

to its step down subsidiary ''Tata Motors Passenger Vehicles Limited''

procedures in this area, among others to obtain sufficient appropriate

(TMPVL) (formerly known as TML Business Analytics Services Limited)

audit evidence:

in accordance with the Scheme of Arrangement (Scheme) approved by

Test of Controls:

the National Company Law Tribunal (''NCLT'') vide its Order dated August

• We evaluated the design and tested the operating effectiveness

24, 2021. The Company has filed the NCLT approved scheme with the

of the key control over the identification of assets and liabilities

Registrar of Companies and received all other regulatory approvals and

of the PV Undertaking to be transferred from the Company to

the scheme is effective from January 01, 2022. Accordingly, the assets and liabilities of PV Undertaking have been transferred to TMPVL as on

TMPVL pursuant to the Scheme and recording the impact of the

January 01, 2022.

Scheme.

The Company has accounted for this transfer in accordance with the generally accepted accounting principles and has recognized the

• We evaluated the design and tested the operating effectiveness

excess of consideration received over the carrying value of net assets

of the key control for identification of amounts to be disclosed

transferred, amounting to '' 1,960.04 crores in Capital Reserve.

as discontinued operations and related disclosures in the

(Refer note 46 to the Standalone Financial Statements)

standalone financial statements.

The transfer of PV Undertaking has significant measurement and disclosure impacts on the Company''s standalone financial statements.

Test of Details:

This involves identification of assets and liabilities to be transferred as part of the Scheme and disclosure of revenue, expenses and pre-

• We read minutes of meetings of the Board of Directors of the

tax profit or loss of discontinued operations as a single amount in the

Company, the Scheme of Arrangement and the NCLT Order to

Statement of Profit or Loss for current and previous year in accordance with Ind AS 105: Non current Assets Held for Sale and Discontinued

analyse the key terms and conditions of theunderlying Scheme

Operations. Further, significant judgement is required in determining the

of Arrangement;

appropriate accounting treatment.

Thus, we have identified transfer of PV Undertaking as a key audit

• We have performed necessary procedures to determine

matter given that it is a significant, complex, unusual / non-routine

the completeness and accuracy of the assets and liabilities

transaction and material to the standalone financial statements and that

identified as part of transfer of PV Undertaking;

is fundamental to the users'' understanding of the financial statements.

• We evaluated the appropriateness of the accounting treatment followed by the Company;

• We have performed necessary procedures to verify the amounts disclosed as discontinued operations in the Statement of Profit or Loss for the current and previous year;

• We analysed the accounting treatment and adequacy of disclosure for compliance with applicable Indian Accounting Standards and accounting principles generally accepted in India;

• We evaluated the Company''s assessment of the income tax impact of the above business transfer (from a seller''s perspective) and its impact on the standalone financial statements. We involved tax specialist for the same.

Other Information

The Company''s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the standalone financial statements and our auditor''s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, and based on the work done / audit report of the other auditor, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management''s and Board of Directors'' Responsibilities for the Standalone Financial Statements

The Company''s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective Management and Board of Directors of the companies are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of each company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the respective Management and Board of Directors are responsible for assessing the ability of each company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors are also responsible for overseeing the financial reporting process of each company.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,

and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial statements / financial information of joint operations of the Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of financial statements / financial information of such joint operation included in the standalone financial statements of which we are the independent auditors. For the other joint operation included in the standalone financial statements, which has been audited by the other auditor, such other auditor remains responsible for the direction, supervision and performance of the audit carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in the section titled Other Matters in this audit report.

We communicate with those charged with governance of the Company and such other entity included in the standalone financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the financial information of one joint operation (which ceased to be a joint operation on January 01, 2022) included in the standalone financial statements of the Company whose financial information reflect total revenue (before consolidation adjustments) of '' 10,213.55 crores and net cash outflows (before consolidation adjustments) amounting to '' 657.82 crores for the period from April 01, 2021 to December 31, 2021, as considered in the standalone financial statements. The financial information of this joint operation has been audited by the other auditor whose report has been furnished to us, and our opinion in so far as it

relates to the amounts and disclosures included in respect of this

joint operation, is based solely on the report of such other auditor.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 (the Order) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. (A) As required by Section 143(3) of the Act, based on our

audit and on the consideration of report of the other auditor on separate financial statements of one joint operation that was audited by the other auditor, as noted in the Other Matters paragraph, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company and its joint operations so far as it appears from our examination of those books and the report of the other auditor.

c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31 March 2022 taken on record by the Board of Directors and the report of the statutory auditors of the joint operation, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and its joint operations which are companies incorporated in India and the operating effectiveness of such controls, refer to our separate Report in Annexure B.

(B) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditor''s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the other auditor on

separate financial statements of a joint operation, as noted in the Other Matters paragraph:

a) The standalone financial statements disclose the impact of pending litigations as at 31 March 2022 on the financial position of the Company and its joint operation to the standalone financial statements.

b) Provision has been made in the standalone financial statements, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts to the standalone financial statements.

c) There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Company or its joint operations incorporated in India during the year ended 31 March 2022.

d) (i) The management has represented that, to the best

of its knowledge and belief, except as disclosed in the note 49 (iv) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company or its joint operation companies incorporated in India to or in any other persons or entities, including foreign entities (Intermediaries), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Company or its joint operation companies incorporated in India or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in the note 49 (v) to the standalone financial statements, no funds have been received by the Company or its joint operation from any persons or entities, including foreign entities (Funding Parties), with the understanding, whether recorded in writing or otherwise, that the Company or its joint operation companies incorporated in India shall:

• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding Party or

• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (d) (i) and (d) (ii) contain any material misstatement.

e) The Company has neither declared nor paid any dividend during the year. In respect of a joint operation, the final dividend paid by the joint operation during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.

The Board of Directors of the joint operation have proposed final dividend for the year which is subject to the approval of the members of the joint operation at their ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

(C) With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

Further, with respect to the joint operations included in the standalone financial statements, in our opinion and according to the information and explanations given to us, the provisions of Section 197 of the Act are not applicable to the joint operation companies incorporated in India since none of these companies is a public company.

For B S R & Co. LLP

Chartered Accountants Firm''s Registration No. 101248W/W-100022

Shiraz Vastani

Place: Mumbai Partner

Date: 12 May 2022 Membership No.103334

UDIN -22103334AIVTXO1213