Financial Statements

Standalone
Independent Auditors’ Report
TO THE MEMBERS OF TATA MOTORS LIMITED SAs are further described in the Auditor’s Responsibilities for the Audit of the
Report on the Audit of the Standalone Financial Statements 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
Opinion Chartered Accountants of India together with the ethical requirements that are
We have audited the standalone financial statements of Tata Motors Limited (“the relevant to our audit of the standalone financial statements under the provisions
Company”), which comprise the standalone balance sheet as at 31 March 2021, of the Act and the Rules thereunder, and we have fulfilled our other ethical
and the standalone statement of profit and loss (including other comprehensive responsibilities in accordance with these requirements and the Code of Ethics.
income), standalone statement of changes in equity and standalone statement We believe that the audit evidence obtained by us along with the consideration of
of cash flows for the year then ended , and notes to the standalone financial audit report of the other auditor referred to in “ Other Matter” paragraph below,
statements, including a summary of the significant accounting policies and other is sufficient and appropriate to provide a basis for our opinion on the standalone
explanatory information and includes two joint operations consolidated on a financial statements.
proportionate basis.
Emphasis of matter
In our opinion and to the best of our information and according to the explanations We draw your attention to Note 2(d) to these standalone financial statements,
given to us, and based on the consideration of report of other auditor on separate which describes the economic and social consequences/disruption the Company
financial statements of one joint operation as was audited by the other auditor, is facing as a result of COVID-19 which is impacting supply chains/consumer
the aforesaid standalone financial statements give the information required by demand/financial markets/commodity prices/personnel available for work.
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, Key Audit Matters
of the state of affairs of the Company as at 31 March 2021, and loss and other Key audit matters are those matters that, in our professional judgement, were
comprehensive income, changes in equity and its cash flows for the year ended of most significance in our audit of the standalone financial statements of the
on that date . 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,
Basis for Opinion and we do not provide a separate opinion on these matters.
We conducted our audit in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Act. Our responsibilities under those
Description of Key Audit Matter
Key audit matter How the matter was addressed in our audit
Assessment of indicators of impairment reversal of property, plant and equipment and intangible assets of the passenger vehicles cash generating unit
The Company periodically assesses if there are any triggers In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain
for reversal of previously recognised impairment loss in sufficient appropriate audit evidence
respect of its passenger vehicle cash generating unit (CGU).
Test of Controls:
In making this determination , the Company considers both
• We evaluated the design and tested the operating effectiveness of the key control over the assessment of
internal and external sources of information to determine
indicators of impairment reversal.
whether there is an indicator of impairment reversal and,
accordingly , whether the recoverable amount of the CGU
needs to be estimated.
An impairment loss accounted in earlier years is reversed Test of Details:
if the recoverable amount is higher than the carrying value.
The recoverable amount is determined based on the higher of • We assessed internal and external sources of information used by the Company to determine that there are
value in use (VIU) and fair value less costs to sell (FVLCS) . As indicators of impairment reversal.
at 31 March 2021, the Company determined the recoverable
amount of this CGU to be `14,169 crores, being the FVLCS, • In performing the above assessment we have examined:
and reversed the impairment loss. After reversal of the − The growth in total industry volume in current year and growth estimates as per industry forecasts.
impairment loss, the carrying value of net assets for this CGU − The increase in share price of the Company during the current year and the market capitalisation attributable
was `7,750 crores as at 31 March 2021. to the passenger vehicles CGU.
− The improvement in sales multiple as per analyst report as compared to previous year.
This assessment of indicators of impairment reversal is − The growth in the sales volume of the Company in the current year.
considered to be a key audit matter due to the significant − The increase in market share of the Company in the current year as compared to previous year.
judgment required to assess the internal and external − The improvement in the contribution margin earned by the Company.
sources of information.
• We also assessed changes in the estimates used to determine the CGU’ s recoverable amount.
(Refer notes 2(q) and 6(a) of the standalone financial • We involved valuation professionals with specialized skills and knowledge who assisted in evaluating the
statements. principles used in selection of comparable companies and assessing the CGU’ s enterprise value (i.e. FVLCS) based
on comparable companies ‘ enterprise value to sales multiple.
• We performed a sensitivity analysis over the enterprise value to sales multiple to assess the impact on the
recoverable amount.
170 | 76th Integrated Annual Report 2020-21

Integrated Report (1-67) Statutory Reports (68-169) Financial Statements (170-367)
Other Information As part of an audit in accordance with SAs , we exercise professional

The Company’s management and Board of Directors are responsible for judgment and maintain professional skepticism throughout the audit. We
the other information. The other information comprises the information also:
included in the Company’s annual report, but does not include the • Identify and assess the risks of material misstatement of the
financial statements and our audi tors’ report thereon. standalone financial statements, whether due to fraud or error,
Our opinion on the standalone financial statements does not cover design and perform audit procedures responsive to those risks,
the other information and we do not express any form of assurance and obtain audit evidence that is sufficient and appropriate to
conclusion thereon. provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
In connection with our audit of the standalone financial statements, our from error, as fraud may involve collusion, forgery, intentional
responsibility is to read the other information and, in doing so, consider omissions, misrepresentations , or the override of internal control.
whether the other information is materially inconsistent with the
standalone financial statements or our knowledge obtained in the audit • Obtain an understanding of internal control relevant to the audit
or otherwise appears to be materially misstated. If, based on the work in order to design audit procedures that are appropriate in the
we have performed, we conclude that there is a material misstatement circumstances. Under section 143(3)(i) of the Act, we are also
of this other information, we are required to report that fact. We have responsible for expressing our opinion on whether the company
nothing to report in this regard. has adequate internal financial controls with reference to financial
statements in place and the operating effectiveness of such controls
Management’s and Board of Directors’ Responsibility for the .
Standalone Financial Statements
The Company’s Management and Board of Directors are responsible • Evaluate the appropriateness of accounting policies used and the
for the matters stated in section 134(5) of the Act with respect to the reasonableness of accounting estimates and related disclosures in
preparation of these standalone financial statements that give a true the standalone financial statements made by the Management and
and fair view of the state of affairs, profit/loss and other comprehensive Board of Directors.
income, changes in equity and cash flows of the Company including its • Conclude on the appropriateness of the Management and Board of
joint operations , in accordance with the accounting principles generally Directors use of the going concern basis of accounting in preparation
accepted in India, including the Indian Accounting Standards (Ind AS) of standalone financial statements and, based on the audit evidence
specified under section 133 of the Act. The respective Management obtained, whether a material uncertainty exists related to events
and Board of Directors of the Company and its joint operations are or conditions that may cast significant doubt on the Company‘s
responsible for maintenance of adequate accounting records in ability to continue as a going concern. If we conclude that a material
accordance with the provisions of the Act for safeguarding of the assets uncertainty exists, we are required to draw attention in our auditor’s
of the respective company and for preventing and detecting frauds and report to the related disclosures in the standalone financial
other irregularities; selection and application of appropriate accounting statements or, if such disclosures are inadequate, to modify our
policies; making judgments and estimates that are reasonable and opinion. Our conclusions are based on the audit evidence obtained
prudent; and design, implementation and maintenance of adequate up to the date of our auditor’s report. However, future events or
internal financial controls that were operating effectively for ensuring conditions may cause the Company (including its joint operations) to
accuracy and completeness of the accounting records , relevant to the cease to continue as a going concern.
preparation and presentation of the standalone financial statements
that give a true and fair view and are free from material misstatement , • Evaluate the overall presentation, structure and content of the
whether due to fraud or error, which have been used for the preparation standalone financial statements, including the disclosures, and
of the standalone financial statements by the Management and Directors whether the standalone financial statements represent the
of the Company, as aforesaid . underlying transactions and events in a manner that achieves fair
presentation.
In preparing the standalone financial statements, the respective
Management and Board of Directors of the Company and its joint • Obtain sufficient appropriate audit evidence regarding the financial
operations are responsible for assessing the ability of each company to information of the Company and its joint operations to express an
continue as a going concern, disclosing, as applicable, matters related to opinion on the standalone financial statements, of which we are
going concern and using the going concern basis of accounting unless the independent auditors. We are responsible for the direction,
the Board of Directors either intends to liquidate the company or to cease supervision and performance of the audit of financial information
operations, or has no realistic alternative but to do so. of the Company and such joint operation included in the standalone
annual financial results of which we are the independent auditors.
The respective Board of Directors of the Company and its joint operations For the other joint operation included in the standalone financial
is also responsible for overseeing the financial reporting process of each statements, which has been audited by other auditor, such other
company. auditor remains responsible for the direction, supervision and
Auditor’s Responsibilities for the Audit of the Standalone performance of the audit carried out by them. We remain solely
Financial Statements responsible for our audit opinion. Our responsibilities in this regard
Our objectives are to obtain reasonable assurance about whether the are further described in section titled ‘ Other Matter’ in this audit
standalone financial statements as a whole are free from material report.
misstatement, whether due to fraud or error, and to issue an auditor’s We believe that the audit evidence obtained by us along with the
report that includes our opinion. Reasonable assurance is a high level of consideration of audit report of the other auditor referred to in the Other
assurance, but is not a guarantee that an audit conducted in accordance Matter paragraph below, is sufficient and appropriate to provide a basis
with SAs will always detect a material misstatement when it exists. for our audit opinion on the standalone financial statements .
Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected We communicate with those charged with governance of the Company
to influence the economic decisions of users taken on the basis of these and such other entities included in the standalone financial statements of
standalone financial statements. which we are the independent auditors regarding, among other matters,
Resilience and Rebound | 171

Standalone
the planned scope and timing of the audit and significant audit findings, c) The standalone balance sheet, the standalone
including any significant deficiencies in internal control that we identify statement of profit and loss (including other
during our audit. comprehensive income), the standalone statement of
changes in equity and the standalone statement of cash
We also provide those charged with governance with a statement
flows dealt with by this Report are in agreement with
that we have complied with relevant ethical requirements regarding
the relevant books of account.
independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence , d) In our opinion, the aforesaid standalone financial
and where applicable, related safeguards. statements comply with the Ind AS specified under
section 133 of the Act.
From the matters communicated with those charged with governance,
we determine those matters that were of most significance in the e) On the basis of the written representations received
audit of the standalone financial statements of the current period and from the directors as on 31 March 2021 taken on record
are therefore the key audit matters. We describe these matters in our by the Board of Directors and the report of the statutory
auditors’ report unless law or regulation precludes public disclosure auditors of the joint operations , none of the directors of
about the matter or when, in extremely rare circumstances, we determine the Company and its joint operations is disqualified as
that a matter should not be communicated in our report because the on 31 March 2021 from being appointed as a director in
adverse consequences of doing so would reasonably be expected to terms of Section 164(2) of the Act.
outweigh the public interest benefits of such communication.
f) With respect to the adequacy of the internal financial
Other Matter controls with reference to financial statements of the
We did not audit the financial statements of one joint operation included Company and its joint operations which are companies
in the standalone financial statements of the Company, whose financial incorporated in India and the operating effectiveness of
statements reflect total assets (before consolidation adjustments) such controls, refer to our separate Report in “Annexure
of `8,039.78 crores as at 31 March 2021, total revenue (before B”.
consolidation adjustments) of `8,010.01 crores and net profit after
(B) With respect to the other matters to be included in the
tax (before consolidation adjustments) of `577.76 crores and net cash
Auditors‘ Report in accordance with Rule 11 of the Companies
inflows (before consolidation adjustments) amounting to `720.67 crores
(Audit and Auditors) Rules, 2014, in our opinion and to the
for the year ended 31 March 2021, as considered in the standalone
best of our information and according to the explanations
financial statements. These financial statements have been audited by
given to us and based on the consideration of the report of
other auditor whose report has been furnished to us by the management
the other auditor on separate financial statements of a joint
and our opinion on the standalone financial statements, in so far as it
operation, as noted in the “Other Matter” paragraph:
relates to the amounts and disclosures included in respect of this joint
operation, and our report in terms of sub-section (3) of Section 143 of the i. The standalone financial statements disclose the
Act, in so far as it relates to the aforesaid joint operation is based solely impact of pending litigations as at 31 March 2021
on the audit report of the other auditor. on the financial position of the Company and its joint
operations - Refer Note 39 to the standalone financial
Our opinion on the standalone financial statements, and our report on
statements;
Other Legal and Regulatory Requirements below, is not modified in
respect of the above matter with respect to our reliance on the work done ii. Provision has been made in the standalone financial
and the report of the other auditor. statements, as required under the applicable law or
Ind AS, for material foreseeable losses, on long-term
Report on Other Legal and Regulatory Requirements
contracts including derivative contracts - Refer Note 49
1. As required by the Companies (Auditors’ Report) Order, 2016 (“the
(iii) to the standalone financial statements;
Order”) issued by the Central Government in terms of section
143 (11) of the Act, we give in the “ Annexure A” a statement on iii. There has been no delay in transferring amounts to
the matters specified in paragraphs 3 and 4 of the Order for the the Investor Education and Protection Fund by the
Company (excluding its joint operations), to the extent applicable. Company or its joint operations incorporated in India
during the year ended 31 March 2021;
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 iv. The disclosures in the standalone financial statements
separate financial statements of a joint operation, as were regarding holdings as well as dealings in specified bank
audited by the other auditor as noted in the “Other Matter” notes during the period from 8 November 2016 to 30
paragraph, we report, to the extent applicable, that: December 2016 have not been made in these financial
statements since they do not pertain to the financial
a) We have sought and obtained all the information and
year ended 31 March 2021.
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit. ( C) With respect to the matter to be included in the Auditors ‘
Report under section 197(16):
b) In our opinion , proper books of account as required
by law have been kept by the Company and its joint We draw your attention to Note 44 to the standalone
operations so far as it appears from our examination of financial statements for the year ended 31 March 2021
those books and the report of the other auditor. according to which the re-appointment of the CEO and

Managing Director for the period 15 February 2021 to 30 Companies Act, 2013. The Ministry of Corporate Affairs has
June 2021 and the remuneration for this period are subject to not prescribed other details under Section 197(16) which are
approval of the shareholders, which the Company proposes required to be commented upon by us.
to obtain in the forthcoming Annual General Meeting, in
Further, with respect to the joint operations included in the
accordance with the provisions of the Companies Act, 2013.
standalone financial statements, based on the reports of
Accordingly, the managerial remuneration aggregating `2.22
statutory auditors of such joint operations, we understand
crores paid to the CEO and Managing Director of the Company
that the joint operations are private limited companies and
for the period from 15 February 2021 to 31 March 2021,
accordingly matters to be included in Auditor’ s report under
calculated on a proportionate basis, exceeds the prescribed
section 197(16) are not applicable for such joint operations.
limits under Section 197 read with Schedule V to the Act, by
`1.89 crores. This amount excludes Performance and Long
Term Incentives , which will be accrued post determination
For B S R & Co. LLP
and approval by the Board of Directors of the Company,
Chartered Accountants
and such amounts will also exceed the prescribed limits.
Firm’s Registration No: 101248W/W-100022
Further, the Company is also in the process of obtaining
Central Government approval since the CEO and Managing
Director is a non-resident. We draw attention to Note 36(d) Shiraz Vastani
to the standalone financial statements for the year ended 31 Partner
March 2021 according to which the remuneration payable Membership No. 103334
to non executive independent directors aggregating `1.70 UDIN -21103334AAAAAW6929
crores is subject to approval of the shareholders, which
Place: Pune
the Company proposes to obtain in the forthcoming Annual
Date: 18 May 2021
General Meeting, in accordance with the provisions of the

Standalone
Annexure A to the Independent Auditors’ Report – 31 March 2021
With reference to the Annexure referred to in paragraph 1 in Report on (vi) The maintenance of cost records has been specified by the Central
Other Legal and Regulatory Requirements of the Independent Auditor’s Government under Section 148(1) of the Companies Act, 2013 in
Report to the members of the Company on the Standalone financial respect of the products manufactured by the Company. We have
statements for the year ended 31 March 2021, we report that: broadly reviewed the books of account maintained by the Company
pursuant to the rules prescribed by the Central Government for
(i) (a) The Company has maintained proper records showing full
maintenance of cost records under section 148(1) of the Companies
particulars, including quantitative details and situation of
Act, 2013 in respect of manufacture of products and are of the
fixed assets.
opinion that prima facie, the prescribed accounts and records have
(b) The Company has a regular program of physical verification been made and maintained . However, we have not made a detailed
of its fixed assets by which its fixed assets are verified in a examination of the cost records with a view to determine whether
phased manner over a period of three years. In our opinion, they are accurate or complete.
this periodicity of physical verification is reasonable having
(vii) (a) According to the information and explanations given to
regard to the size of the Company and the nature of its
us and on the basis of our examination of the records of
fixed assets. According to the information and explanations
the Company, amounts deducted / accrued in the books of
given to us, no material discrepancies were noticed on such
account in respect of undisputed statutory dues including
verification of fixed assets.
Provident fund, Employees’ state insurance, Income tax,
(c) According to the information and explanations given to us, the Duty of customs, Goods and services tax and other material
records examined by us and based on the examination of the statutory dues have generally been regularly deposited
registered sale deed /transfer deed /conveyance deed /court during the year by the Company with the appropriate
orders approving schemes of arrangements /amalgamations authorities, except for Provident fund dues referred to in
provided to us, we report that, the title deeds, comprising note 39 to the financial statements. We are informed by the
all the immovable properties of land and buildings which Company that the Employee’s State Insurance Act, 1948 is
are freehold, are held in the name of the Company as at the applicable only to certain locations of the Company. With
Balance Sheet date. In respect of immovable properties that regard to the contribution under the Employee’s Deposit
have been taken on lease and disclosed as Right of Use assets Linked Insurance Scheme, 1976 (the scheme), the Company
in the standalone financial statements, the lease agreements has sought exemption from making contribution to the
are in the name of the Company , where the Company is the scheme since it has its own Life Cover Scheme. The Company
lessee in the agreement. has made an application on August 31, 2020 seeking an
extension of exemption from contribution to the Scheme for a
(ii) The inventory including inventory lying with third parties, except
period of 3 years approval of which is awaited. We are further
goods-in-transit, has been physically verified by the management
informed by the Company that they have filed for surrender
during the year. In our opinion , the frequency of such verification is
of exemption available to its Pension Trust effective 1
reasonable and adequate in relation to the size of the Company and
October 2019. We draw attention to note 20(ii) to the financial
the nature of its business. The discrepancies noticed on verification
statements which more fully explains that pending approval
between the physical stocks and the book records were not
of the application for surrender filed, the contributions to
material and have been properly dealt with in the books of account.
the Pension scheme amounting to `73.47 crores, from 1
(iii) According to information and explanations given to us, the October 2019 to 31 March 2021, have been deposited by
Company has granted loans, secured or unsecured , to companies, the Company in a restricted fixed deposit. As explained to us,
firms or other parties covered in the Register maintained under the Company does not have dues on account of Sales Tax,
Section 189 of the Companies Act, 2013, in respect of which: Service Tax, Value Added Tax and Duty of Excise.
a) The terms and conditions of the grant of such loans are, in our According to the information and explanations given to us,
opinion, prima facie, not prejudicial to the Company’s interest. no undisputed amounts payable in respect of Provident fund,
Employees’ state insurance, Income tax, Duty of customs,
b) The schedule of repayment of principal and payment of
Goods and services tax and other material statutory dues
interest has been stipulated and repayments or receipts
were in arrears as at 31 March 2021, for a period of more
of principal amounts and interest have been regular as per
than six months from the date they became payable . We
stipulations or as renegotiated.
draw attention to note 39 to the financial statements which
c) There is no amount overdue for more than 90 days at the more fully explains the matter regarding non-payment of
Balance Sheet date. provident fund contribution pursuant to Supreme Court
judgement dated 28 February 2019 and also to note 20(ii)
(iv) According to the information and explanations given to us, the
to the financial statements which more fully explains that
Company has complied with provisions of section 185 and 186
pending approval of the application for surrender filed, the
of the Companies Act, 2013 in respect of grant of loans, making
contributions to the Pension scheme from 1 October 2019
investments and providing guarantees and securities, as applicable.
to 31 March 2021, have been deposited by the Company in a
(v) According to the information and explanations given to us, the restricted fixed deposit.
Company has not accepted any deposits during the year. In
respect of unclaimed deposits , the Company has complied with
the provisions of section 73 to 76 of the Act and the rules framed
thereunder.
(b) According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Service tax, Value added tax, Goods
and services tax, Duty of customs and Duty of excise which have not been deposited by the Company with appropriate authorities on
account of any disputes except for the following:
Amount Amount paid under Forum where dispute is

Name of the statute Nature of dues Period to which the amount relates
(` crores) protest* (` crores) pending
Income Tax Act, 1961 Income tax 2.78 2.78 1982-83, 1991-92 and 1995-96 High Court
107.62 107.62 2003-04, 2005-06 to 2011-12 Income Tax Appellate
and erstwhile Tata Finance Limited Tribunal
1997-98 to 1999-2000
137.41 137.38 2012-13 to 2015-2016 and Commissioner of Income
erstwhile Tata Motors Drivelines Tax Appeals
Limited 2015-16
Central Excise Act, Duty of excise 42.95 0.15 1991 - 92, 1992-93, 1993-94, High Court
1944 2002-2003, 2005-06, 2006-07,
2009-10, 2010-2011, 2011-12
608.04 25.12 1991-92, 1992-93, 1994-95, 1996- The Custom, Excise and
97, 1997-98 and 1999-2000 to Service Tax Appellate
2017-18 Tribunal
7.54 0.27 1984-85, 1999-2000 to 2017-18 Appellate Authority
upto Commissioner’s
level
Finance Act, 1994 Service tax 1,086.69 10.79 2004-05 to 2013-14 High Court
147.86 6.22 2004-05 to 2017-18 The Custom, Excise and
Service Tax Appellate
Tribunal
Sales Tax Sales tax 13.18 - 1995-96 Supreme Court
281.49 50.49 1984-85 to 1988-89, 1990-91, High Court
1992-93, 2001-02 to 2005-06,
2007-08 to 2016-17.
458.54 16.76 1983-84, 1985-86, 1989-90,1998- Sales Tax Tribunal
99, 2000-01 and 2004-05 to
2015-16
778.22 28.51 1979-80, 1986-87, 1989-90 to Appellate Authority
2017-18 upto Commissioner’s
level
Customs Act, 1962 Duty of customs 3.90 3.90 2011-12 Supreme Court
7.49 3.11 2008-09 High Court
Goods and Services Goods and 0.12 0.12 2018-19 The Goods and Services
Tax Services Tax Tax Appellate Tribunal
0.67 0.23 2017-18 to 2020-21 Appellate Authority
upto Commissioner’s
level
* includes refunds adjusted by the authorities.

(viii) In our opinion and according to the information and explanations (xi) According to the information and explanations given to us
given to us, the Company has not defaulted in repayment of loans or and based on our examination of the records of the Company,
borrowings to banks and dues to debenture holders. The Company the Company has paid/provided for managerial remuneration
did not have any outstanding dues to any financial institution or in accordance with the requisite approvals mandated by the
government during the year. provisions of Section 197 read with Schedule V of the Act for
the year ended 31 March 2021, except that the re-appointment
(ix) In our opinion and according to the information and explanations
of the CEO and Managing Director for the period 15 February
given to us, the Company has not raised money by way of further
2021 to 30 June 2021 and the remuneration for this period is
public offer (including debt instruments) during the year and
subject to approval of the shareholders, which the Company
the term loans taken by the Company have been applied for the
proposes to obtain in the forthcoming Annual General Meeting,
purpose for which they were raised.
in accordance with the provisions of the Companies Act, 2013.
(x) According to the information and explanations given to us, no Accordingly, the managerial remuneration aggregating `2.22
fraud by the Company and no material fraud on the Company by crores paid to the CEO and Managing Director of the Company for
its officers or employees has been noticed or reported during the the period from 15 February 2021 to 31 March 2021, calculated
course of our audit. on a proportionate basis, exceeds the prescribed limits under

Standalone
Section 197 read with Schedule V to the Companies Act, 2013, by Act. Out of the total money raised aggregating `2,602.51 crores,
`1.89 crores. This amount excludes Performance and Long Term `Nil has been utilized till 31 March 2021 (also refer note [2l(h)]
Incentives, which will be accrued post determination and approval to the standalone financial statements). Pending utilization , the
by the Board of Directors of the Company, and such amounts will funds aggregating to `2,602.51 crores were used for purposes
also exceed the prescribed limits. Further, the Company is also other than for which they were raised by temporarily investing in
in the process of obtaining Central Government approval since mutual funds and fixed deposits .
the CEO and Managing Director is a non-resident. The Company
(xv) According to the information and explanations given to us,
has also provided for the remuneration payable to non-executive
the Company has not entered into any non-cash transactions
independent directors aggregating `1.70 crores which is subject
with directors or persons connected with them during the year.
to approval of the shareholders, which the Company proposes to
According ly, paragraph 3(xv) of the Order is not applicable to the
obtain in the forthcoming Annual General Meeting, in accordance
Company.
with the provisions of the Companies Act, 2013.
(xvi) In our opinion and according to the information and explanations
(xii) In our opinion and according to the information and explanations
given to us, the Company is not required to register under section
given to us, the Company is not a Nidhi Company as per the Act.
45-IA of the Reserve Bank oflndia Act, 1934.
Accordingly, paragraph 3(xii) of the Order is not applicable to the
Company.
(xiii) In our opinion and according to the information and explanations For B S R & Co. LLP
given to us, all transactions with related parties are in compliance Chartered Accountants
with section 177 and 188 of the Act and the details, as required by Firm’s Registration No: 101248W/W-100022
the applicable accounting standards have been disclosed in the
standalone financial statements.
Shiraz Vastani
(xiv) According to the information and explanations given to us and on Partner
the basis of our examination of the records of the Company, the Place: Pune Membership No. 103334
Company has made preferential allotment of equity shares during Date: 18 May 2021 UDIN -21103334AAAAAW6929
the year in compliance with the requirements of Section 42 of the

Annexure B to the Independent Auditors’ Report 31 March 2021
Report on the internal financial controls with reference to the aforesaid We believe that the audit evidence we have obtained and the audit evidence
standalone financial statements under Clause (i) of Sub-section 3 of obtained by the other auditor of a joint operation in terms of their report
Section 143 of the Companies Act, 2013 referred in the Other Matter paragraph below, is sufficient and appropriate
to provide a basis for our audit opinion on the internal financial controls with
(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and Regulatory
reference to financial statements.
Requirements’ section of our report of even date)
Meaning of Internal Financial controls with Reference to
Opinion
Financial Statements
We have audited the internal financial controls with reference to financial
A company’s internal financial controls with reference to financial statements
statements of Tata Motors Limited (“ the Company”) as of 31 March 2021
is a process designed to provide reasonable assurance regarding the
in conjunction with our audit of the standalone financial statements of the
reliability of financial reporting and the preparation of financial statements
Company for the year ended on that date which includes internal financial
for external purposes in accordance with generally accepted accounting
controls with reference to financial statements of the Company‘s joint
principles. A company’s internal financial controls with reference to financial
operations which are companies incorporated in India.
statements include those policies and procedures that
In our opinion, the Company and its joint operations which are companies
(1) pertain to the maintenance of records that, in reasonable detail ,
incorporated in India, have, in all material respects, adequate internal
accurately and fairly reflect the transactions and dispositions of the
financial controls with reference to financial statements and such internal
assets of the company;
financial controls were operating effectively as at 31 March 2021, based
on the internal financial controls with reference to financial statements (2) provide reasonable assurance that transactions are recorded as
criteria established by the Company and its joint operations considering necessary to permit preparation of financial statements in accordance
the essential components of internal control stated in the Guidance Note on with generally accepted accounting principles, and that receipts and
Audit of Internal Financial Controls Over Financial Reporting issued by the expenditures of the company are being made only in accordance with
Institute of Chartered Accountants oflndia (the “Guidance Note” ). authorisations of management and directors of the company; and
Management’s Responsibility for Internal Financial Controls (3) provide reasonable assurance regarding prevention or timely
The respective Company’ s management and the Board of Directors are detection of unauthorised acquisition, use, or disposition of the
responsible for establishing and maintaining internal financial controls company’s assets that could have a material effect on the standalone
based on the internal financial controls with reference to financial financial statements .
statements criteria established by the respective companies considering
Inherent Limitations of Internal Financial controls with
the essential components of internal control stated in the Guidance Note.
Reference to Financial Statements
These responsibilities include the design, implementation and maintenance
Because of the inherent limitations of internal fmancial controls with
of adequate internal financial controls that were operating effectively
reference to fmancial statements , including the possibility of collusion or
for ensuring the orderly and efficient conduct of its business, including
improper management override of controls, material misstatements due
adherence to the respective company’s policies, the safeguarding of its
to error or fraud may occur and not be detected . Also, projections of any
assets, the prevention and detection of frauds and errors, the accuracy
evaluation of the internal fmancial controls with reference to standalone
and completeness of the accounting records, and the timely preparation of
fmancial statements to future periods are subject to the risk that the internal
reliable financial in formation, as required under the Companies Act, 2013
financial controls with reference to standalone financial statements may
(hereinafter referred to as “the Act”).
become inadequate because of changes in conditions, or that the degree of
Auditors’ Responsibility compliance with the policies or procedures may deteriorate.
Our responsibility is to express an opinion on the Company’s internal
Other Matter
financial controls with reference to financial statements based on our audit.
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and
We conducted our audit in accordance with the Guidance Note and the
operating effectiveness of the internal financial controls with reference
Standards on Auditing, prescribed under section 143(10) of the Act, to the
to standalone financial statements in so far as it relates to one joint
extent applicable to an audit of internal financial controls with reference to
operation, which is a company incorporated in India, is based solely on the
financial statements. Those Standards and the Guidance Note require that
corresponding report of the other auditor.
we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls For B S R & Co. LLP
with reference to financial statements were established and maintained and Chartered Accountants
whether such controls operated effectively in all material respects. Firm’s Registration No: 101248W/W-100022
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls with reference to financial Shiraz Vastani
statements and their operating effectiveness. Our audit of internal financial Partner
controls with reference to financial statements included obtaining an Place: Pune Membership No. 103334
understanding of such internal financial controls, assessing the risk that Date: 18 May 2021 UDIN -21103334AAAAAW6929
a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the standalone financial
statements , whether due to fraud or error.

Standalone
Balance Sheet
(` in crores)
As at As at
Notes
March 31, 2021 March 31, 2020
I. ASSETS
(1) NON-CURRENT ASSETS
(a) Property, plant and equipment 3 (a) 19,153.47 18,870.67
(b) Capital work-in-progress 3 (b) 1,400.82 1,755.51
( c) Right of use assets 4 768.59 669.58
(d) Goodwill 99.09 99.09
(e) Other intangible assets 5 (a) 6,401.95 5,568.64
(f) Intangible assets under development 5 (b) 1,605.64 2,739.29
(g) Investments in subsidiaries, joint ventures and associates 7 15,147.26 15,182.29
(h) Financial assets
(i) Investments 8 967.65 548.57
(ii) Loans and advances 10 126.05 138.46
(iii) Other financial assets 12 1,631.83 1,512.96
(i) Non-current tax assets (net) 715.31 727.97
(j) Other non-current assets 14 1,187.41 1,208.08
49,205.07 49,021.11
(2) CURRENT ASSETS
(a) Inventories 16 4,551.71 3,831.92
(b) Financial assets
(i) Investments 9 1,578.26 885.31
(ii) Trade receivables 17 2,087.51 1,978.06
(iii) Cash and cash equivalents 19 2,365.54 2,145.30
(iv) Bank balances other than (iii) above 20 1,953.40 1,386.89
(v) Loans and advances 11 185.42 232.14
(vi) Other financial assets 13 1,745.06 1,546.56
( c) Assets classified as held for sale 49 (iv) 220.80 191.07
(d) Other current assets 15 1,166.89 1,371.51
15,854.59 13,568.76
TOTAL ASSETS 65,059.66 62,589.87
II. EQUITY AND LIABILITIES
EQUITY
(a) Equity share capital 21 765.81 719.54
(b) Other equity 18,290.16 17,668.11
19,055.97 18,387.65
LIABILITIES
(1) NON-CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings 23 16,326.77 14,776.51
(ii) Lease liabilities 593.74 522.24
(iii) Other financial liabilities 25 659.64 854.74
(b) Provisions 27 1,371.94 1,769.74
( c) Deferred tax liabilities (net) 266.50 198.59
(d) Other non-current liabilities 30 533.55 269.58
19,752.14 18,391.40
(2) CURRENT LIABILITIES
(i) Borrowings 24 2,542.50 6,121.36
(iii) Trade payables
(a) Total outstanding dues of micro and small enterprises 167.23 101.56
(b) Total outstanding dues of creditors other than micro and small enterprises 7,947.78 8,000.69
(iv) Acceptances 7,873.12 2,741.69
(v) Other financial liabilities 26 4,255.57 5,976.35
(b) Provisions 28 1,043.54 1,406.75
( c) Current tax liabilities (net) 37.84 31.49
(d) Other current liabilities 31 2,287.50 1,347.63
26,251.55 25,810.82
TOTAL EQUITY AND LIABILITIES 65,059.66 62,589.87
See accompanying notes to financial statements

In terms of our report attached For and on behalf of the Board
For B S R & Co. LLP
Chartered Accountants N CHANDRASEKARAN [DIN: 00121863] GUENTER BUTSCHEK [DIN: 07427375]
Firm’s Registration No: 101248W/W-100022 Chairman CEO and Managing Director
Place- Mumbai Place- Austria
SHIRAZ VASTANI VEDIKA BHANDARKAR [DIN: 00033808] P B BALAJI

Partner Director Group Chief Financial Officer
Membership No. 103334 Place- Mumbai Place- Mumbai
UDIN: 21103334AAAAAW6929
Place- Pune H K SETHNA [FCS: 3507]
Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021
Statement of Profit and Loss
(` in crores)
Year ended Year ended
Notes
March 31, 2021 March 31, 2020
Revenue from operations
Revenue 46,559.39 43,485.76
Other operating revenue 472.08 442.41
I. Total revenue from operations 32 47,031.47 43,928.17
II. Other Income 33 842.96 1,383.05
III. Total Income (I+II) 47,874.43 45,311.22
IV. Expenses
(a) Cost of materials consumed 30,010.61 26,171.85
(b) Purchases of products for sale 5,490.67 5,679.98
(c) Changes in inventories of finished goods, work-in-progress and products for sale (69.02) 722.68
(d) Employee benefits expense 34 4,212.99 4,384.31
(e) Finance costs 35 2,358.54 1,973.00
(f) Foreign exchange loss (net) 1.67 239.00
(g) Depreciation and amortisation expense 3,681.61 3,375.29
(h) Product development/Engineering expenses 907.64 830.24
(i) Other expenses 36 5,801.90 7,720.75
(j) Amount transferred to capital and other accounts 37 (817.53) (1,169.46)
Total Expenses (IV) 51,579.08 49,927.64
V. Profit/(loss) before exceptional items and tax (III-IV) (3,704.65) (4,616.42)
VI. Exceptional items
(a) Employee separation cost 215.97 2.69
(b) Write off/provision (reversal) for tangible/intangible assets (including under development) 38 114.00 (73.03)
(c) Provision/(reversal) for loan given to/investment and cost of closure in subsidiary 123.36 385.62
companies/joint venture (net)
(d) Impairment losses/(reversal) in passenger vehicle business 6 (a) (1,182.41) 1,418.64
(e) Provision/(reversal) for Onerous Contracts and related supplier claims 6 (b) (663.00) 777.00
VII. Profit/(loss) before tax (V-VI) (2,312.57) (7,127.34)
VIII. Tax expense (net) 29
(a) Current tax 82.31 33.05
(b) Deferred tax 0.56 129.24
Total tax expense 82.87 162.29
IX. Profit/(loss) for the year from continuing operations (VII-VIII) (2,395.44) (7,289.63)
X. Other comprehensive income/(loss):
(A) (i) Items that will not be reclassified to profit and loss:
(a) Remeasurement losses on defined benefit obligations (net) (23.62) (105.32)
(b) Equity instruments at fair value through other comprehensive income 365.84 (115.72)
(ii) Income tax credit/(expense) relating to items that will not be reclassified to profit and (8.60) 33.71
loss
(B) (i) Items that will be reclassified to profit and loss - gains/(losses) in cash flow hedges 168.12 (294.19)
(ii) Income tax credit/(expense) relating to items that will be reclassified to profit and (58.75) 102.80
loss
Total other comprehensive income/(loss), net of taxes 442.99 (378.72)
XI. Total comprehensive income/(loss) for the year (IX+X) (1,952.45) (7,668.35)
XII. Earnings/(loss) per share (EPS) 40
(A) Ordinary shares (face value of `2 each) :
(i) Basic ` (6.59) (21.06)
(ii) Diluted ` (6.59) (21.06)
(B) ‘A’ Ordinary shares (face value of `2 each) :
(i) Basic ` (6.59) (21.06)
(ii) Diluted ` (6.59) (21.06)

For B S R & Co. LLP

Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021

Standalone
Cash Flow Statement
(` in crores)
March 31, 2021 March 31, 2020
Cash flows from operating activities:
Profit/(loss) for the year (2,395.44) (7,289.63)
Adjustments for:
Depreciation and amortisation expense 3,681.61 3,375.29
Allowances for trade and other receivables 102.69 65.35
Inventory write down (net) 45.58 84.50
Provision/(reversal) for loan given to/investment and cost of closure in subsidiary companies/joint venture 123.36 385.62
(net)
Employee separation cost 188.20 -
Impairment losses/(reversal) in passenger vehicle business (1,182.41) 1,418.64
Provision/(reversal) for Onerous Contracts and related supplier claims (663.00) 777.00
Share-based payments 9.04 4.70
Marked-to-market loss/(gain) on investments measured at Fair value through profit and loss (5.20) 0.43
Write off/provision (reversal) for tangible/intangible assets (including under development) 114.00 (73.03)
(Profit)/Loss on sale of assets (net) (including assets scrapped/written off) (126.09) 168.04
Profit on sale of investments at FVTPL (net) (72.80) (70.16)
Tax expense (net) 82.87 162.29
Finance costs 2,358.54 1,973.00
Interest income (196.24) (483.72)
Dividend income (20.45) (241.22)
Foreign exchange (gain)/loss (net) (83.44) 182.32
4,356.26 7,729.05
Cash flows from operating activities before changes in following assets and liabilities 1,960.82 439.42
Trade receivables (141.51) 1,168.02
Loans and advances and other financial assets (175.97) 53.29
Other current and non-current assets 34.11 22.78
Inventories (765.37) 730.01
Trade payables and acceptances 4,964.54 (2,688.95)
Other current and non-current liabilities 1,075.59 (1,165.05)
Other financial liabilities 31.69 201.38
Provisions (240.33) (122.95)
Cash generated from/(used in) operations 6,743.57 (1,362.05)
Income taxes paid (net) (63.25) (92.54)
Net cash from/(used in) operating activities 6,680.32 (1,454.59)
Cash flows from investing activities:
Payments for property, plant and equipments (1,162.95) (2,748.60)
Payments for other intangible assets (693.35) (1,919.98)
Proceeds from sale of property, plant and equipments 178.36 155.16
Investments in Mutual Fund (purchased)/sold (net) (614.95) 358.87
Investments in subsidiary companies - (467.00)
Sale of business to subsidiary company 10.30 25.82
Purchase of unquoted investment- others (57.60) -
Purchase of stake in joint venture (0.02) -
Loan given to subsidiary companies/payment for costs of closure in subsidiary companies (56.59) (7.79)
Sale of quoted investment- others 4.36 -
Increase in short term inter corporate deposit (net) (30.00) (10.07)

Cash Flow Statement
(` in crores)
March 31, 2021 March 31, 2020
Deposits/restricted deposits with financial institution (1,000.00) (1,000.00)
Realisation of deposits with financial institution 750.00 750.00
Deposits/restricted deposits with banks (3,342.52) (3,419.37)
Realisation of deposits/restricted deposits with banks 2,849.64 2,851.53
Interest received 153.55 471.35
Dividend received 20.45 241.22
Net cash used in investing activities (2,991.32) (4,718.86)
Cash flows from financing activities
Proceeds from issue of shares/conversion of warrants (net of issue expenses) 2,602.51 3,888.79
Proceeds from long-term borrowings (net of issue expenses) 4,667.65 4,781.55
Repayment of long-term borrowings (4,562.91) (1,124.93)
Proceeds from Option settlement of long term borrowings 35.01 190.90
Repayment of matured fixed deposits (0.48) (6.75)
Proceeds from short-term borrowings 4,068.21 9,178.61
Repayment of short-term borrowings (5,874.81) (8,003.51)
Net change in other short-term borrowings (with maturity up to three months) (1,785.86) 1,311.36
Repayment of lease liabilities (including interest) (192.32) (193.63)
Dividend paid (1.56) (3.52)
Interest paid [including discounting charges paid, `438.43 crores (March 31, 2020 `371.57 crores)] (2,427.35) (2,269.66)
Net cash from/(used in) financing activities (3,471.91) 7,749.21
Net increase in cash and cash equivalents 217.09 1,575.76
Cash and cash equivalents as at April 1, (opening balance) 2,145.30 487.40
Effect of foreign exchange on cash and cash equivalents 3.15 82.14
Cash and cash equivalents as at March 31, (closing balance) 2,365.54 2,145.30
Non-cash transactions:
Liability towards property, plant and equipment and other intangible assets purchased on credit/deferred 410.15 403.02
credit

For B S R & Co. LLP

Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021

182
Statement of Changes in Equity
FOR THE YEAR ENDED MARCH 31, 2021
|
A. EQUITY SHARE CAPITAL
(` in crores)
Particulars
Balance as at April 1, 2020 719.54
Proceeds from issue of shares 46.27
Balance as at March 31, 2021 765.81
B. OTHER EQUITY (REFER NOTE 22)

(` in crores)
Particulars Securities Share Money Capital Debenture Capital Retained Other components of equity Total other
premium based received redemption redemption reserve (on earnings Equity Hedging Cost of equity
payments against reserve reserve merger)/(sale instruments reserve hedging
reserve Share of business)
76th Integrated Annual Report 2020-21

through OCI reserve
Warrants (net)
Balance as at April 1, 2020 22,194.89 13.14 867.50 2.28 1,038.84 (359.37) (5,821.83) (56.00) (168.55) (42.79) 17,668.11
Loss for the year - - - - - - (2,395.44) - - - (2,395.44)
Other comprehensive income/(loss) for the year - - - - - - (14.44) 348.06 67.38 41.99 442.99
Total comprehensive loss for the year - - - - - - (2,409.88) 348.06 67.38 41.99 (1,952.45)
Share-based payments - 9.04 - - - - - - - - 9.04
Issue of shares pursuant to preferential allotment/ 3,423.74 - (867.50) - - - - - - - 2,556.24
conversion of share warrants
Realised gain on investments held at fair value - - - - - - 4.36 (4.36) - - -
through Other comprehensive income
Sale of business to a subsidiary company [refer - - - - - 9.22 - - - - 9.22
note 49 (vi)]
Transfer from debenture redemption reserve - - - - (134.40) - 134.40 - - - -
Balance as at March 31, 2021 25,618.63 22.18 - 2.28 904.44 (350.15) (8,092.95) 287.70 (101.17) (0.80) 18,290.16

For B S R & Co. LLP

Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021
Standalone
Statement of Changes in Equity
FOR THE YEAR ENDED MARCH 31, 2020

(` in crores)
Particulars
Integrated Report (1-67)
B. OTHER EQUITY (REFER NOTE 22)

(` in crores)
Particulars Securities Share Money Capital Debenture Capital Retained Other components of equity Total other
premium based received redemption redemption reserve (on earnings Equity Hedging Cost of equity
payments against reserve reserve merger)/ instruments reserve hedging
reserve Share (sale of through OCI reserve
Warrants business)
(net)
Balance as at April 1, 2019 19,213.93 8.44 - 2.28 1,085.94 (359.37) 1,489.77 62.26 (26.40) 6.45 21,483.30
Profit for the year - - - - - (7,289.63) - - - (7,289.63)
Other comprehensive income/(loss) for the year - - - - - (69.07) (118.26) (142.15) (49.24) (378.72)
Total comprehensive income/(loss) for the year - - - - - (7,358.70) (118.26) (142.15) (49.24) (7,668.35)
Share-based payments - 4.70 - - - - - - - - 4.70
Statutory Reports (68-169)
Issue of Share warrants - - 867.50 - - - - - - - 867.50

Issue of shares pursuant to preferential allotment 2,980.96 - - - - - - - - - 2,980.96
(net of issue expenses of `3.08 crores) and proceeds
from issue of shares held in abeyance
Transfer from debenture redemption reserve - - - - (47.10) - 47.10 - - - -
Balance as at March 31, 2020 22,194.89 13.14 867.50 2.28 1,038.84 (359.37) (5,821.83) (56.00) (168.55) (42.79) 17,668.11

For B S R & Co. LLP

Financial Statements (170-367)

Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021
Resilience and Rebound

|
183
Standalone
NOTES FORMING PART OF FINANCIAL STATEMENTS
1. BACKGROUND AND OPERATIONS the Going Concern Assessment Period and considers the
Tata Motors Limited referred to as (“the Company” or “Tata estimated on-going impact of the COVID-19 global pandemic
Motors”), designs, manufactures and sells a wide range of and a cautious view of the impact of near-term supply chain
automotive vehicles. The Company also manufactures engines challenges related to global semi-conductor shortages.
for industrial and marine applications. It also accounts for other end-market and operational
factors throughout the Going Concern Assessment Period.
The Company is a public limited Company incorporated and The base case assumes continued recovery in industry
domiciled in India and has its registered office at Mumbai, India. volumes based upon external industry forecasts. This has
As at March 31, 2021, Tata Sons Pvt Limited, together with its been further sensitized using more severe but plausible
subsidiaries owns 46.33% of the Ordinary shares and 7.66% scenarios considering external market commentaries and
of ‘A’ Ordinary shares of the Company, and has the ability to other factors impacting the global economy and automotive
significantly influence the Company’s operations. industry. Management do not consider more extreme
These standalone financial statements were approved by the scenarios than the ones assessed to be plausible.
Board of Directors and authorised for issue on May 18, 2021. Certain lenders of the Company have also waived the
2. SIGNIFICANT ACCOUNTING POLICIES compliance with specific covenants under their loan
a. Statement of compliance agreements, with one of the lenders extending the waiver
These financial statements have been prepared in until March 31, 2023 and the other lender extending the
accordance with Ind AS as notified under the Companies waiver until March 31, 2022. Tata Sons Private Limited, as
(Indian Accounting Standards) Rules, 2015 read with promoter of the Company, will provide financial support to
Section 133 of the Companies Act, 2013 (the “Act”). help the Company meet its liquidity needs and covenants
under the borrowing agreements with lenders until at least
b. Basis of preparation March 31, 2023 or the completion of the Company’s plan to
The financial statements have been prepared on historical subsidiarize its Passenger Vehicles business into a separate
cost basis except for certain financial instruments which are subsidiary through a scheme of arrangement, whichever is
measured at fair value at the end of each reporting period as earlier.
explained in the accounting policies below.
In evaluating the forecasts, the Company has taken into
Joint operations consideration both the sufficiency of liquidity to meet
Certain of the Company’s activities, are conducted through obligations as they fall due as well as potential impact on
joint operations, which are joint arrangements whereby compliance with financial covenants during the forecast
the parties that have joint control of the arrangement period. These forecasts indicate that, based on cash
have rights to the assets, and obligations for the liabilities, generated from operations, the existing funding facilities
relating to the arrangement. As per Ind AS 111 - Joint and support from Tata Sons Private Limited, the Company
arrangements, in its separate financial statements, the will have sufficient liquidity to operate and discharge its
Company being a joint operator has recognised its share of liabilities as they become due, without breaching any
the assets, liabilities, income and expenses of these joint relevant covenants and the need for any mitigating actions.
operations incurred jointly with the other partners, along
with its share of income from the sale of the output and Based on the evaluation described above, management
any assets, liabilities and expenses that it has incurred in believes that the Company has sufficient financial
relation to the joint operation. resources available to it at the date of approval of these
financial statements and that it will be able to continue as a
Although not required by Ind ASs, the Company has ‘going concern’ in the foreseeable future and for a period of
provided in note 49 additional information of Tata Motors at least September 30, 2022.
Limited on a standalone basis excluding its interest in its
two Joint Operations viz. Tata Cummins Private Limited and d. Use of estimates and judgments
Fiat India Automobiles Private Limited. The preparation of financial statements in conformity with
Ind AS requires management to make judgments, estimates
c. Going concern and assumptions, that affect the application of accounting
The Company’s financial statements have been prepared on policies and the reported amounts of assets, liabilities and
a going concern basis. disclosures of contingent assets and liabilities at the date
The Company has performed an assessment of its financial of these financial statements and the reported amounts
position as at March 31, 2021 and forecasts of the Company of revenues and expenses for the years presented. Actual
for a period of eighteen months from the date of these results may differ from these estimates.
financial statements (the ‘Going Concern Assessment Estimates and underlying assumptions are reviewed at
Period’ and the ‘Foreseeable Future’). each balance sheet date. Revisions to accounting estimates
In developing these forecasts, the Company has modelled are recognised in the period in which the estimate is revised
a base case, which has been further sensitised using severe and in future periods affected.
but plausible downside scenarios. The base case covers

In particular, information about significant areas of The Company recognises revenues on the sale of
estimation uncertainty and critical judgments in applying products, net of discounts, sales incentives, customer
accounting policies that have the most significant effect bonuses and rebates granted, when products are
on the amounts recognised in the financial statements are delivered to dealers or when delivered to a carrier for
included in the following notes: export sales, which is when control including risks and
rewards and title of ownership pass to the customer.
i) Note 3, Note 5 and Note 6 - Property, plant and
equipment and Intangible assets- useful life and The Company offers sales incentives in the form of
impairment variable marketing expense to customers, which
vary depending on the timing and customer of any
ii) Note 29 - Recoverability/recognition of deferred tax
subsequent sale of the vehicle. This sales incentive
assets
is accounted for as a revenue reduction and is
iii) Note 27 and 28 - Provision for product warranty constrained to a level that is highly probable not to
reverse the amount of revenue recognised when any
iv) Note 47- Assets and obligations relating to employee
associated uncertainty is subsequently resolved.
benefits
The Company estimates the expected sales incentive
v) Estimation of uncertainties relating to the global by market and considers uncertainties including
health pandemic from COVID-19. competitor pricing, ageing of retailer stock and local
market conditions.
The World Health Organisation in February 2020
declared COVID-19 as a pandemic. Covid-19 pandemic The consideration received in respect of transport
has rapidly spread throughout the world, including India. arrangements for delivering of vehicles to the
Governments in India and across the world have taken customers are recognised net of their costs within
significant measures to curb the spread of the virus revenues in the income statement.
including imposing mandatory lockdowns and restrictions
Revenues are recognised when collectability of the
in activities. Consequently, Company’s manufacturing
resulting receivable is reasonably assured.
plants and offices had to be closed down/operate under
restrictions for a considerable period of time during the ii) Sale of services- maintenance service and extended
year. Lockdowns/restrictions have impacted the Company warranties for commercial and passenger vehicles
operationally including on commodity prices, supply chain
Income from sale of maintenance services and
matters (including semiconductor supplies) and consumer
extended warranties are recognised as income over
demand. More recently, the next wave of the pandemic
the relevant period of service or extended warranty.
has impacted India and the Company is monitoring the
situation closely taking into account the increasing level of When the Company sells products that are bundled
infections in India and across the world and directives from with maintenance service or extended period of
the various Governments. Management believes that it has warranty, such services are treated as a separate
taken into account all the possible impacts of known events performance obligation only if the service or warranty
arising from COVID-19 pandemic in the preparation of the is optional to the customer or includes an additional
financial results including but not limited to its assessment service component. In such cases, the transaction
of Company’s liquidity and going concern, recoverable price allocated towards such maintenance service
values of its property, plant and equipment, intangible or extended period of warranty is recognised as a
assets, intangible assets under development and the net contract liability until the service obligation has been
realisable values of other assets. However, given the effect met.
of these lockdowns and restrictions on the overall economic
The Company operates certain customer loyalty
activity and in particular on the automotive industry, the
programs under which customer is entitled to reward
impact assessment of COVID-19 on the abovementioned
points on the spend towards Company’s products. The
financial statement captions is subject to significant
reward points earned by customers can be redeemed
estimation uncertainties due to its nature and duration and,
to claim discounts on future purchase of certain
accordingly, the actual impacts in future may be different
products or services. Transaction price allocated
from those estimated as at the date of approval of these
towards reward points granted to customers is
financial statements. The Company will continue to monitor
recognised as a deferred income liability and
any material changes to future economic conditions and
transferred to income when customers redeem their
consequential impact on its financial statements.
reward points.
Revenue recognition
Sales of services include certain performance
The Company generates revenue principally from-
obligations that are satisfied over a period of time.
i) Sale of products- commercial and passenger vehicles Any amount received in advance in respect of such
and vehicle parts performance obligations that are satisfied over a

Standalone
period of time is recorded as a contract liability and vary depending on when warranty claim will arise, being
recorded as revenue when service is rendered to typically up to six years. The Company also has back- to-
customers. back contractual arrangement with its suppliers in the event
that a vehicle fault is proven to be a supplier’s fault.
Refund liabilities comprise of obligation towards customers
to pay for discounts and sales incentives. Estimates are made of the expected reimbursement claim
based upon historical levels of recoveries from supplier,
e. Government Grants and Incentives
adjusted for inflation and applied to the population of
Other income includes export and other recurring and
vehicles under warranty as on Balance Sheet date. Supplier
non-recurring incentives from Government (referred as
reimbursements are recognised as separate asset.
“incentives”).
Provision for onerous obligations
Government grants are recognised when there is a
A provision for onerous contracts is recognized when the
reasonable assurance that the Company will comply with
expected benefits to be derived by the Company from a
the relevant conditions and the grant will be received.
contract are lower than the unavoidable costs of meeting
Government grants are recognised in the statement of profit its obligations under the contract. It is recognized when the
and loss, either on a systematic basis when the Company Company has entered into a binding legal agreement for the
recognises, as expenses, the related costs that the grants purchase of components from suppliers that exceeds the
are intended to compensate or, immediately if the costs have benefits from the expected future use of the components
already been incurred. Government grants related to assets and the Company sells the finished goods using the
are deferred and amortised over the useful life of the asset. components at a loss.
Government grants related to income are presented as an
h. Foreign currency
offset against the related expenditure, and government
These financial statements are presented in Indian rupees,
grants that are awarded as incentives with no ongoing
which is the functional currency of Tata Motors Limited.
performance obligations to the Company are recognised as
Transactions in foreign currencies are recorded at the
income in the period in which the grant is received.
exchange rate prevailing on the date of transaction. Foreign
f. Cost recognition currency denominated monetary assets and liabilities are
Costs and expenses are recognised when incurred and re-measured into the functional currency at the exchange
are classified according to their nature. Expenditure are rate prevailing on the balance sheet date. Exchange
capitalized where appropriate, in accordance with the policy differences are recognised in the statement of Profit and
for internally generated intangible assets and represents Loss except to the extent, exchange differences on foreign
employee costs, stores and other manufacturing supplies, currency borrowings which are capitalized when they are
and other expenses incurred for construction and product regarded as an adjustment to interest costs.
development undertaken by the Company.
i. Income taxes
Material and other cost of sales as reported in the statement Income tax expense comprises current tax and deferred
of profit and loss is presented net of the impact of realised tax. Income tax expense is recognised in the statement of
foreign exchange relating to derivatives hedging cost Profit and Loss except when they relate to items that are
exposures. recognised outside of profit and loss (whether in other
comprehensive income or directly in equity), in which case
g. Provisions
tax is also recognised outside profit and loss. Current
A provision is recognised if, as a result of a past event, the
income taxes are determined based on respective taxable
Company has a present legal or constructive obligation
income of each taxable entity.
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the Deferred tax assets and liabilities are recognised for
obligation. When the effect of the time value of money is the future tax consequences of temporary differences
material, provisions are determined by discounting the between the carrying values of assets and liabilities and
expected future cash flows using a pre-tax rate that reflects their respective tax bases, and unutilised business loss
current market assessments of the time value of money and and depreciation carry-forwards and tax credits. Such
the risks specific to the liability. deferred tax assets and liabilities are computed separately
for each taxable entity. Deferred tax assets are recognised
Product warranty expenses
to the extent it is probable that future taxable income
The estimated liability for product warranties is recognised
will be available against which the deductible temporary
when products are sold or when new warranty programmes
differences, unused tax losses, depreciation carry-forwards
are initiated. These estimates are established using
and unused tax credits could be utilised. The carrying
historical information on the nature, frequency and average
amount of deferred tax assets is reviewed at each reporting
cost of warranty claims and management estimates
date and reduced to the extent that it is no longer probable
regarding possible future warranty claims, customer
that sufficient taxable profits will be available to allow all or
goodwill and recall complaints. The timing of outflows will
part of the asset to be recovered.

Deferred tax assets and liabilities are measured based on Depreciation is provided on the Straight Line Method (SLM)
the tax rates that are expected to apply in the period when over the estimated useful lives of the assets considering
the asset is realised or the liability is settled, based on the tax the nature, estimated usage, operating conditions, past
rates and tax laws that have been enacted or substantively history of replacement, anticipated technological changes,
enacted by the balance sheet date. Current and deferred manufacturers’ warranties and maintenance support.
tax assets and liabilities are offset when there is a legally Taking into account these factors, the Company has
enforceable right to set off current tax assets against current decided to retain the useful life hitherto adopted for various
tax liabilities and when they relate to income taxes levied categories of property, plant and equipments, which are
by the same taxation authority and the Company intends different from those prescribed in Schedule II of the Act.
to settle its current tax assets and liabilities on a net basis.
Estimated useful lives of assets are as follows:
Deferred tax liabilities on taxable temporary differences
arising from investments in subsidiaries, branches and Estimated
associated companies and interests in joint arrangements useful life (years)
are not recognised if the Company is able to control the Buildings, Roads, Bridge and culverts 4 to 60
timing of the reversal and it is probable that the temporary
Plant, machinery and equipment 8 to 20
difference will not reverse in the foreseeable future
Computers and other IT assets 4 to 6
j. Cash and cash equivalents Vehicles 4 to 10
Cash and cash equivalents comprises cash on hand, demand
Furniture, fixtures and office appliances 5 to 15
deposits and highly liquid investments with an original
maturity of up to three months that are readily convertible The useful lives is reviewed at least at each year end.
into cash and which are subject to an insignificant risk of Changes in expected useful lives are treated as change in
changes in value. accounting estimates.
k. Earnings per share Depreciation is not recorded on capital work-in-progress
Basic earnings per share has been computed by dividing until construction and installation are complete and the
net income by the weighted average number of shares asset is ready for its intended use.
outstanding during the year. Partly paid up shares are
An item of property, plant and equipment is derecognized on
included as fully paid equivalents according to the fraction
disposal. Any gain or loss arising from derecognition of an
paid up. Diluted earnings per share has been computed
item of property, plant and equipment is included in profit or
using the weighted average number of shares and dilutive
loss when it is derecognized.
potential shares, except where the result would be anti-
dilutive. n. Other intangible assets
Intangible assets purchased are measured at cost or
l. Inventories
fair value as on the date of acquisition less accumulated
Inventories are valued at the lower of cost and net realisable
amortisation and accumulated impairment, if any.
value. Cost of raw materials, components and consumables
are ascertained on a moving weighted average basis. Amortisation is provided on a straight-line basis over
Cost, including fixed and variable production overheads, estimated useful lives of the intangible assets as per details
are allocated to work-in-progress and finished goods below:
determined on a full absorption cost basis. Net realisable
value is the estimated selling price in the ordinary course Estimated
amortisation period
of business less estimated cost of completion and selling
expenses. Technological know-how 8 to 10 years
Software 4 years
m. Property, plant and equipment
Property, plant and equipment are stated at cost of The amortisation period for intangible assets with finite
acquisition or construction less accumulated depreciation useful lives is reviewed at least at each year-end. Changes in
and accumulated impairment, if any. expected useful lives are treated as changes in accounting
estimates.
Freehold land is measured at cost and is not depreciated.
Internally generated intangible asset
Cost includes purchase price, non-recoverable taxes
Research costs are charged to the statement of Profit and
and duties, labour cost and direct overheads for self-
Loss in the year in which they are incurred.
constructed assets and other direct costs incurred up to the
date the asset is ready for its intended use. Product development costs incurred on new vehicle
platform, engines, transmission and new products are
Interest cost incurred for constructed assets is capitalised
recognised as intangible assets, when feasibility has
up to the date the asset is ready for its intended use, based
been established, the Company has committed technical,
on borrowings incurred specifically for financing the asset
financial and other resources to complete the development
or the weighted average rate of all other borrowings, if no
and it is probable that asset will generate future economic
specific borrowings have been incurred for the asset.
benefits.

Standalone
The cost of an internally generated intangible asset is the • The Company has the right to operate the asset; or
sum of directly attributable expenditure incurred from the
• The Company designed the asset in a way that
date when the intangible asset first meets the recognition
predetermines how and for what purposes it will be
criteria to the completion of its development.
used.
Interest cost incurred is capitalised up to the date the asset
At inception or on reassessment of a contract that contains a
is ready for its intended use, based on borrowings incurred
lease component, the Company allocates the consideration
specifically for financing the asset or the weighted average
in the contract to each lease component on the basis of their
rate of all other borrowings if no specific borrowings have
relative stand-alone prices.
been incurred for the asset.
The Company recognises a right-of-use asset and a lease
Product development costs is amortised over the life of the
liability at the lease commencement date. The right-of-use
related product, being a period of 24 months to 120 months.
asset is initially measured at cost, which comprises of the
Product development expenditure is measured at cost less initial amount of the lease liability adjusted for any lease
accumulated amortisation and accumulated impairment, if payments made at or before the commencement date, plus
any. Amortisation is not recorded on product engineering in any initial direct costs incurred and an estimate of costs to
progress until development is complete. dismantle and remove the underlying asset or to restore
the underlying asset or the site on which it is allocated,
Derecognition of intangible assets
less any lease incentives received. The right-of-use asset is
An item of intangible assets is derecognized on disposal or subsequently amortised using the straight-line method over
when fully amortized and no longer in use. Any gain or loss the shorter of the useful life of the leased asset or the period
arising from derecognition of an item of intangible assets is of lease. If ownership of the leased asset is automatically
included in profit or loss when it is derecognized. transferred at the end of the lease term or the exercise of
a purchase option is reflected in the lease payments, the
o. Goodwill
right-of-use asset is amortised on a straightline basis over
Cash generating units to which goodwill is allocated are
the expected useful life of the leased asset.
tested for impairment annually at each balance sheet date,
or more frequently when there is an indication that the unit The lease liability is initially measured at the present value
may be impaired. If the recoverable amount of the cash of the lease payments that are not paid at commencement
generating unit is less than the carrying amount of the unit, date, discounted using the interest rate implicit in the lease
the impairment loss is allocated first to reduce the carrying or, if that rate cannot be readily determined, the Company’s
amount of any goodwill allocated to that unit and then to incremental borrowing rate. Generally, the Company uses
the other assets of the unit pro rata on the basis of carrying its incremental borrowing rate as a discount rate. The lease
amount of each asset in the unit. Goodwill impairment loss liability is measured at amortised cost using the effective
recognised is not reversed in subsequent period. interest method. It is re measured when there is a change in
future lease payments.
p. Leases
At inception of a contract, the Company assesses whether Lease payments include fixed payments, i.e. amounts
a contract is, or contain a lease. A contract is, or contains, expected to be payable by the Company under residual
a lease if the contract conveys the right to control the use value guarantee, the exercise price of a purchase option if
of an identified asset for a period of time in exchange for the Company is reasonably certain to exercise that option
consideration. To assess whether a contract conveys the and payment of penalties for terminating the lease if the
right to control the use of an identified asset, the Company lease term considered reflects that the Company shall
assesses whether: exercise termination option. The Company also recognises
a right of use asset which comprises of amount of initial
• The contract involves the use of an identified asset –
measurement of the lease liability, any initial direct cost
this may be specified explicitly or implicitly, and should
incurred by the Company and estimated dilapidation costs.
be physically distinct or represent substantially all of
the capacity of a physically distinct asset. If the supplier Payment made towards short term leases (leases for which
has a substantive substation right, then the asset is not non-cancellable term is 12 months or lesser) and low value
identified; assets (lease of assets worth less than `0.03 crore) are
recognised in the statement of Profit and Loss as rental
• The Company has the right to substantially all of the
expenses over the tenor of such leases.
economic benefits from the use of the asset throughout
the period of use; and q. Impairment
At each balance sheet date, the Company assesses
• The Company has the right to direct the use of the asset.
whether there is any indication that any property, plant
The Company has this right when it has the decision
and equipment and intangible assets with finite lives may
making rights that are most relevant to changing how
be impaired. If any such impairment exists the recoverable
and for what purposes the asset is used. In rare cases
amount of an asset is estimated to determine the extent of
where the decision about how and for what purpose the
impairment, if any. Where it is not possible to estimate the
asset is used is predetermined, the Company has the
recoverable amount of an individual asset, the Company
right to direct the use of the asset if either:
estimates the recoverable amount of the cash-generating of providing the pension benefits would not exceed
unit to which the asset belongs. 15% of salary.
Intangible assets not yet available for use, are tested for During the year ended March 31, 2015, the employees
impairment annually at each balance sheet date, or earlier, covered by this plan were given a one-time option to
if there is an indication that the asset may be impaired. exit from the plan prospectively. Furthermore, the
employees who opted for exit were given one- time
Recoverable amount is the higher of fair value less costs
option to withdraw accumulated balances from the
to sell and value in use. In assessing value in use, the
superannuation plan.
estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current The Company maintains a separate irrevocable trust
market assessments of the time value of money and the for employees covered and entitled to benefits.
risks specific to the asset for which the estimates of future The Company contributes up to 15% or `1,50,000
cash flows have not been adjusted. whichever is lower of the eligible employee’s salary
to the trust every year. The Company recognises such
If the recoverable amount of an asset (or cash-generating
contribution as an expense when incurred and has no
unit) is estimated to be less than its carrying amount, the
further obligation beyond this contribution.
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss is iii) Bhavishya kalyan yojana (BKY)
recognised immediately in the statement of Profit and Loss. Bhavishya Kalyan Yojana is an unfunded defined
benefit plan for employees of Tata Motors Limited. The
An asset or cash-generating unit impaired in prior years is
benefits of the plan include pension in certain cases,
reviewed at each balance sheet date to determine whether
payable up to the date of normal superannuation had
there is any indication of a reversal of impairment loss
the employee been in service, to an eligible employee
recognized in prior years.
at the time of death or permanent disablement, while
r. Employee benefits in service, either as a result of an injury or as certified
by the appropriate authority. The monthly payment
i) Gratuity
to dependents of the deceased/disabled employee
Tata Motors Limited and its Joint operations have
under the plan equals 50% of the salary drawn at
an obligation towards gratuity, a defined benefit
the time of death or accident or a specified amount,
retirement plan covering eligible employees. The
whichever is greater. Tata Motors Limited account
plan provides for a lump-sum payment to vested
for the liability for BKY benefits payable in the future
employees at retirement, death while in employment
based on an actuarial valuation.
or on termination of employment of an amount
equivalent to 15 to 30 days salary payable for each (iv) Provident fund and family pension
completed year of service. Vesting occurs upon In accordance with Indian law, eligible employees
completion of five years of service. Tata Motors of Tata Motors Limited and its Joint operations are
Limited makes annual contributions to gratuity funds entitled to receive benefits in respect of provident fund,
established as trusts. Tata Motors Limited account for a defined contribution plan, in which both employees
the liability for gratuity benefits payable in the future and the Company make monthly contributions at
based on an actuarial valuation. a specified percentage of the covered employees’
salary (currently 12% of employees’ salary). The
ii) Superannuation
contributions, as specified under the law, are made
Tata Motors Limited have two superannuation plans,
to the provident fund and pension fund set up as
a defined benefit plan and a defined contribution plan.
an irrevocable trust by Tata Motors Limited for its
An eligible employee on April 1, 1996 could elect to be
employees. The interest rate payable to the members
a member of either plan.
of the trust shall not be lower than the statutory rate
Employees who are members of the defined of interest declared by the Central Government under
benefit superannuation plan are entitled to benefits the Employees Provident Funds and Miscellaneous
depending on the years of service and salary drawn. Provisions Act, 1952 and shortfall, if any, shall be
The monthly pension benefits after retirement range made good by the Company. The liability in respect
from 0.75% to 2% of the annual basic salary for each of the shortfall of interest earnings of the Fund is
year of service. Tata Motors Limited account for determined on the basis of an actuarial valuation.
superannuation benefits payable in future under the
Given the investment pattern prescribed by the
plan based on an actuarial valuation.
authorities, most investments of provident fund have
With effect from April 1, 2003, this plan was amended historically been in debt securities, thereby giving
and benefits earned by covered employees have been secure returns. However, due to a ratings downgrade
protected as at March 31, 2003. Employees covered and potential bond default of some of the companies,
by this plan are prospectively entitled to benefits the total liability of principal and interest guarantee
computed on a basis that ensures that the annual cost has been actuarially valued as a defined benefit.

Standalone
(v) Post-retirement medicare scheme s. Share based payments

Under this unfunded scheme, employees of Tata The Company recognises compensation expense relating
Motors Limited receive medical benefits subject to to share based payments in accordance with Ind AS 102
certain limits on amounts of benefits, periods after Share-based Payment. Stock options granted by the
retirement and types of benefits, depending on Company to its employees are accounted as equity settled
their grade and location at the time of retirement. options. Accordingly, the estimated fair value of options
Employees separated from the Company as part of an granted that is determined on the date of grant, is charged
Early Separation Scheme, on medical grounds or due to statement of Profit and Loss on a straight line basis over
to permanent disablement are also covered under the the vesting period of options which is the requisite service
scheme. Tata Motors Limited account for the liability period, with a corresponding increase in equity.
for post-retirement medical scheme based on an
t. Dividends
actuarial valuation.
Any dividend declared by Tata Motors Limited is based
(vi) Compensated absences on the profits available for distribution as reported in the
The Company provides for the encashment of statutory financial statements of Tata Motors Limited
leave or leave with pay subject to certain rules. The (standalone) prepared in accordance with Generally
employees are entitled to accumulate leave subject Accepted Accounting Principles in India or Indian GAAP or
to certain limits, for future encashment. The liability Ind AS. Indian law permits the declaration and payment
is provided based on the number of days of unutilised of dividend out of profits for the year or previous financial
leave at each balance sheet date on the basis of an year(s) as stated in the statutory financial statements of
independent actuarial valuation. Tata Motors Limited (Standalone) prepared in accordance
with Generally Accepted Accounting Principles in India, or
(vii) Remeasurement gains and losses
Ind AS after providing for depreciation in accordance with
Remeasurement comprising actuarial gains and
the provisions of Schedule II to the Companies Act.
losses, the effect of the asset ceiling and the
return on assets (excluding interest) relating to However, in the absence or inadequacy of the said profits, it
retirement benefit plans, are recognised directly may declare dividend out of free reserves, subject to certain
in other comprehensive income in the period in conditions as prescribed under the Companies (Declaration
which they arise. Remeasurement recorded in other and Payment of Dividend) Rules, 2014. Accordingly, in
comprehensive income is not reclassified to statement certain years the net income reported in these financial
of Profit and Loss. statements may not be fully distributable. The amount
available for distribution is `Nil as at March 31, 2021 (` Nil
Actuarial gains and losses relating to long-term
as at March 31, 2020)
employee benefits are recognised in the statement of
Profit and Loss in the period in which they arise. u. Segments
The Company primarily operates in the automotive business.
(viii) Measurement date
The automotive business comprises two reportable
The measurement date of retirement plans is March
segments i.e. commercial vehicles and passenger vehicles.
31.
w. Investments in subsidiaries, Joint Ventures and
The present value of the defined benefit liability and
Associates
the related current service cost and past service cost
Investments in subsidiaries, Joint Ventures and Associates
are measured using projected unit credit method.
are measured at cost as per Ind AS 27 – Separate Financial
The present value of the post-employment benefit Statements.
obligations depends on a number of factors, it is
x. Financial instruments
determined on an actuarial basis using a number of
i) Recognition:
assumptions. The assumptions used in determining
A financial instrument is any contract that gives rise to
the net cost/(income) for pensions include the
a financial asset of one entity and a financial liability
discount rate, inflation and mortality assumptions.
or equity instrument of another entity.
Any changes in these assumptions will impact upon
the carrying amount of post-employment benefit Financial instruments are recognised on the balance
obligations. Key assumptions and sensitivities for post sheet when the Company becomes a party to the
employment benefit obligations are disclosed in note contractual provisions of the instrument.
47

Initial measurement outstanding and that are held within a business model
Initially, a financial instrument is recognised at its whose objective is to hold such assets in order to
fair value. Transaction costs directly attributable to collect such contractual cash flows as well as to sell
the acquisition or issue of financial instruments are the financial asset, are classified in this category.
recognised in determining the carrying amount, if it Subsequently, these are measured at fair value, with
is not classified as at fair value through profit or loss. unrealised gains or losses being recognised in other
Transaction costs of financial instruments carried at comprehensive income apart from any expected credit
fair value through profit or loss are expensed in profit losses or foreign exchange gains or losses, which are
or loss. recognised in profit or loss.
Subsequently, financial instruments are measured Financial assets at fair value through profit and loss:
according to the category in which they are classified. Financial assets are measured at fair value through
profit and loss unless it is measured at amortised cost
Classification and measurement – financial or at fair value through other comprehensive income
assets on initial recognition. The transaction costs directly
Classification of financial assets is based on the attributable to the acquisition of financial assets and
business model in which the instruments are held as liabilities at fair value through profit and loss are
well as the characteristics of their contractual cash immediately recognised in profit and loss.
flows. The business model is based on management’s
intentions and past pattern of transactions. Financial Classification and measurement – financial liabilities:
assets with embedded derivatives are considered in Financial liabilities are classified as subsequently
their entirety when determining whether their cash measured at amortised cost unless they meet the
flows are solely payment of principal and interest. The specific criteria to be recognised at fair value through
Company reclassifies financial assets when and only profit or loss.
when its business model for managing those assets Other financial liabilities are measured at amortised
changes cost using the effective interest method. Subsequent
Financial assets are classified into three to initial recognition, these are measured at fair value
categories with gains or losses being recognised in profit or loss.
Financial assets at amortised cost: Financial assets Equity instruments: An equity instrument is any
having contractual terms that give rise on specified contract that evidences residual interests in the
dates to cash flows that are solely payments of assets of the Company after deducting all of its
principal and interest on the principal outstanding liabilities. Equity instruments issued by the Company
and that are held within a business model whose are recorded at the proceeds received, net of direct
objective is to hold such assets in order to collect such issue costs.
contractual cash flows are classified in this category.
Subsequently, these are measured at amortised Financial liabilities at fair value through profit and
cost using the effective interest method less any loss: Derivatives, including embedded derivatives
impairment losses. separated from the host contract, unless they are
designated as hedging instruments, for which hedge
Equity investments at fair value through other accounting is applied, are classified into this category.
comprehensive income (Equity instruments): These These are measured at fair value with changes in fair
include financial assets that are equity instruments value recognised in the statement of Profit and Loss.
and are designated as such upon initial recognition
irrevocably. Subsequently, these are measured at Financial guarantee contracts: These are initially
fair value and changes therein are recognised directly measured at their fair values and, are subsequently
in other comprehensive income, net of applicable measured at the higher of the amount of loss allowance
income taxes. determined or the amount initially recognised less,
the cumulative amount of income recognised.
Dividends from these equity investments are
recognised in the statement of Profit and Loss when Other financial liabilities: These are measured at
the right to receive payment has been established. amortised cost using the effective interest method.
When the equity investment is derecognised, the ii) Determination of fair value:
cumulative gain or loss in equity is transferred to Fair value is the price that would be received to sell
retained earnings. an asset or paid to transfer a liability in an orderly
transaction between market participants at the
Financial assets at fair value through other measurement date, regardless of whether that price
comprehensive income (Debt instruments): Financial is directly observable or estimated using another
assets having contractual terms that give rise valuation technique.
on specified dates, to cash flows that are solely
payments of principal and interest on the principal

Standalone
The fair value of a financial instrument on initial forward looking and are measured in a way that is
recognition is normally the transaction price (fair unbiased and represents a probability-weighted
value of the consideration given or received). amount, takes into account the time value of money
(values are discounted using the applicable effective
In estimating the fair value of an asset or liability, the
interest rate) and uses reasonable and supportable
Company takes into account the characteristics of
information.
the asset or liability if market participants would take
those characteristics into account when pricing the Hedge accounting:
asset or liability at the measurement date. The Company uses foreign currency forward
contracts to hedge its risks associated with foreign
Subsequent to initial recognition, the Company
currency fluctuations relating to highly probable
determines the fair value of financial instruments that
forecast transactions. The Company designates these
are quoted in active markets using the quoted bid prices
forward contracts in a cash flow hedging relationship
(financial assets held) or quoted ask prices (financial
by applying the hedge accounting principles. The
liabilities held) and using valuation techniques for
Company also uses interest rate swaps to hedge
other instruments. Valuation techniques include
its variability in cash flows from interest payments
discounted cash flow method and other valuation
arising from floating rate liabilities i.e. when interests
methods
are paid according to benchmark market interest rates.
(iii) Derecognition of financial assets and financial
Derivative contracts are stated at fair value on the
liabilities:
balance sheet at each reporting date.
The Company derecognises a financial asset only
when the contractual rights to the cash flows from At inception of the hedge relationship, the Company
the asset expires or it transfers the financial asset and documents the economic relationship between the
substantially all the risks and rewards of ownership hedging instrument and the hedged item, including
of the asset to another entity. If the Company neither whether changes in the cash flows of the hedging
transfers nor retains substantially all the risks and instrument are expected to offset changes in the cash
rewards of ownership and continues to control flows of the hedged item. The Company documents
the transferred asset, the Company recognises its its risk management objective and strategy for
retained interest in the asset and an associated liability undertaking its hedging transactions. The Company
for amounts it may have to pay. If the Company retains designates only the intrinsic value of foreign exchange
substantially all the risks and rewards of ownership of options in the hedging relationship. The Company
a transferred financial asset, the Company continues designates amounts excluding foreign currency basis
to recognise the financial asset and also recognises a spread in the hedging relationship for both foreign
collateralised borrowing for the proceeds received. exchange forward contracts and cross- currency
Any gain or loss arising on derecognition is recognised interest rate swaps. Changes in the fair value of the
in profit or loss. When a financial instrument is derivative contracts that are designated and effective
derecognised, the cumulative gain or loss in equity is as hedges of future cash flows are recognised in the
transferred to the statement of profit and loss unless cash flow hedge reserve within other comprehensive
it was an equity instrument electively held at fair value income (net of tax), and any ineffective portion is
through other comprehensive income. In this case, recognised immediately in the statement of profit and
any cumulative gain or loss in equity is transferred loss.
to retained earnings. Financial assets are written off
Amounts accumulated in equity are reclassified to the
when there is no reasonable expectation of recovery.
statement of Profit and Loss in the periods in which the
The Company reviews the facts and circumstances
forecasted transactions occurs.
around each asset before making a determination.
Financial assets that are written off could still be For forwards and options, forward premium and the
subject to enforcement activities. time value are not considered part of the hedge. These
are treated as cost of hedge and the changes in fair
Financial liabilities are decrecognised when these are
value attributable to forward premium is recognised
extinguished, that is when the obligation is discharged,
in the other comprehensive income along with the
cancelled or has expired.
changes in fair value determined to be effective
iii) Impairment of financial assets: portion of the hedge.
The Company recognises a loss allowance for
Effective portion of fair value changes of interest rate
expected credit losses on a financial asset that
swaps that are designated as hedges against interest
is at amortised cost or at fair value through other
rate risk arising from floating rate debt are recognised
comprehensive income. Expected credit losses are
in other comprehensive income.

Hedge accounting is discontinued when the hedging of the Companies Act, 2013. The amendments revise
instrument expires or is sold, terminated, or exercised, Division I, II and III of Schedule III and are applicable
or no longer qualifies for hedge accounting. Amounts from April 1, 2021. Some of the key amendments
accumulated in equity are reclassified to the statement relating to Division II which relate to companies whose
of profit and loss in the periods in which the forecast financial statements are required to comply with
transactions affect profit or loss or as an adjustment Companies (Indian Accounting Standards) Rules 2015
to a non-financial item (e.g. inventory) when that item are:
is recognised on the balance sheet. These deferred
a) Lease liabilities should be separately disclosed
amounts are ultimately recognised in profit or loss
under the head ‘financial liabilities’, duly
as the hedged item affects profit or loss (for example
distinguished as current or non-current.
through cost of goods sold). For forecast transactions,
any cumulative gain or loss on the hedging instrument b) Certain additional disclosures in the statement
recognised in equity is retained there until the forecast of changes in equity such as changes in equity
transaction occurs. share capital due to prior period errors and
restated balances at the beginning of the current
If the forecast transaction is no longer expected to
reporting period.
occur, the net cumulative gain or loss recognised in
equity is immediately transferred to the statement of c) Specified format for disclosure of shareholding
Profit and Loss for the year. of promoters.
(iv) Recent accounting pronouncements d) Specified format for ageing schedule of
On July 24, 2020, the Ministry of Corporate Affairs has trade receivables, trade payables, capital
made following changes applicable from the financial work-in-progress and intangible asset under
year beginning April 1, 2020 – development.
1. Revised the definition of the term ‘business’ and e) If a company has not used funds for the specific
related guidance in Ind AS 103. The amendment purpose for which it was borrowed from banks
permits a simplified assessment of whether and financial institutions, then disclosure of
an acquired set of activities and assets is not a details of where it has been used.
business.
f) Specific disclosure under ‘additional regulatory
2. Amended some specific hedge accounting requirement’ such as compliance with approved
requirements under Ind AS 109 (temporary schemes of arrangements, compliance with
exceptions from applying specific hedge number of layers of companies, title deeds
accounting requirements) and disclosure of immovable property not held in name of
requirements under Ind AS 107 to provide relief company, loans and advances to promoters,
to the potential effects of uncertainty caused directors, key managerial personnel (KMP) and
by the Interest Rate Benchmark Reforms (IBOR related parties, details of benami property held
reforms). etc.
3. Amended Ind AS 116 to provide limited relief to g) Realignment of presentation of following
lessees in respect of rent concessions arising financial statement captions:
due to Covid-19 pandemic.
• Security deposits to be presented
4. Refined the definition of the term ‘material’ under other financial assets (earlier:
and related clarifications in Ind AS 1 and Ind under loans)
AS 8. As per the amendment information is
• Current maturities of long-term
material if omitting, misstating or obscuring
borrowings to be disclosed separately
it could reasonably be expected to influence
under borrowings (earlier: under other
the decisions that the primary users of general
financial liabilities)
purpose financial statements, which provide
financial information about a specific reporting h) Disclosure of charges/ satisfaction yet to be
entity. The amendments further clarified that registered with ROC beyond the statutory period
the information is obscured if it is communicated along with details and reasons thereof
in a way that would have a similar effect for
i) Prescribed disclosures where loans/ advances
primary users of financial statements to omitting
in the nature of loans were granted to promoters,
or misstating that information.
directors, KMPs and the related parties (as
On March 24, 2021, the Ministry of Corporate Affairs defined under 2013 Act), either severally or
(“MCA”) through a notification, amended Schedule III jointly with any other person that are:

Standalone
• Repayable on demand or • Whether quarterly returns/ statements

of current assets filed with banks/ FI are
• Without specifying any terms/ period of
in agreement with the books
repayment
• Summary of reconciliation and reasons
j) Disclosure of prescribed ratios e.g. current
of material discrepancies (if any)
ratio, debt-equity ratio (Explain items included
in numerator and denominator and any change l) Additional disclosures relating to Corporate
in the ratio >25% as compared to the preceding Social Responsibility (CSR), undisclosed income
year) and crypto or virtual currency specified under
the head ‘additional information’ in the notes
k) Disclosure of the following where borrowings
forming part of financial statements.
are made from banks/ FI on the basis of security
of current assets: The Company is assessing the impact of these
changes and will accordingly incorporate the
same for the financial statements for the year
ended March 31, 2022.

3 (a) PROPERTY, PLANT AND EQUIPMENT
(` in crores)
Owned assets Given on lease Taken on lease
Plant, Computers Plant, Plant, Computers
Furniture Furniture Total
Land Buildings machinery and Vehicles & other IT machinery and Buildings Buildings machinery and & other IT
and fixtures and fixtures
equipments assets equipments equipments assets
Cost as at April 1, 2020 4,869.08 3,831.14 29,974.32 256.25 302.71 644.13 38.04 4.02 - - - - 39,919.69
Additions - 119.48 1,708.36 5.20 7.20 23.06 - - - - - - 1,863.30

Sale of business to a subsidiary company [refer - (0.20) (0.46) (0.42) (1.10) (1.25) - - - - - - (3.43)
note 49 (vi)]
Disposals/adjustments - (25.30) (323.74) (35.17) (44.67) (143.17) (0.38) - - - - - (572.44)
Cost as at March 31, 2021 4,869.08 3,925.12 31,358.48 225.86 264.14 522.77 37.66 4.02 - - - - 41,207.13
Accumulated depreciation - (1,391.84) (18,826.47) (169.90) (161.05) (473.95) (24.88) (0.93) - - - - (21,049.02)
as at April 1, 2020
Depreciation for the year - (118.55) (1,665.60) (12.52) (51.18) (46.58) (1.61) (0.10) - - - - (1,896.14)
Reversal of Impairment loss - 56.88 468.83 0.63 1.65 2.76 - - - - - - 530.75
Sale of business to a subsidiary company [refer - 0.06 0.25 0.30 0.56 0.93 - - - - - - 2.10
note 49 (vi)]
Disposal/adjustments - 9.53 149.79 27.93 33.34 137.70 0.36 - - - - - 358.65
as at March 31, 2021
Net carrying amount 4,869.08 2,481.20 11,485.28 72.30 87.46 143.63 11.53 2.99 - - - - 19,153.47
Cost as at April 1, 2019 4,574.93 3,619.53 27,534.85 254.52 271.89 566.02 38.04 4.02 31.28 39.95 186.16 4.31 37,125.50
Adjustment on initial application of Ind AS 116 - - - - - - - - (31.28) (39.95) (186.16) (4.31) (261.70)
Adjusted opening balance 4,574.93 3,619.53 27,534.85 254.52 271.89 566.02 38.04 4.02 - - - - 36,863.80
Additions 294.15 174.28 2,899.32 4.80 65.15 80.23 - - - - - - 3,517.93
Sale of business to a subsidiary company - (0.16) (10.63) (1.00) (0.08) (1.56) - - - - - - (13.43)
Disposals/adjustments - 37.49 (449.22) (2.07) (34.25) (0.56) - - - - - - (448.61)
Cost as at March 31, 2020 4,869.08 3,831.14 29,974.32 256.25 302.71 644.13 38.04 4.02 - - - - 39,919.69
Accumulated depreciation as at April 1, 2019 - (1,220.33) (16,618.51) (157.67) (133.34) (428.94) (23.34) (0.84) (7.29) (35.69) (180.57) (2.37) (18,808.89)
Adjustment on initial application of Ind AS 116 - - - - - - - - 7.29 35.69 180.57 2.37 225.92
Adjusted opening balance - (1,220.33) (16,618.51) (157.67) (133.34) (428.94) (23.34) (0.84) - - - - (18,582.97)
Depreciation for the year - (73.90) (1,805.88) (13.33) (53.10) (42.85) (1.54) (0.09) - - - - (1,990.69)
Sale of business to a subsidiary company - 0.16 6.20 0.70 0.06 0.96 - - - - - - 8.08
Disposal/adjustments - (37.49) 390.22 1.26 27.12 0.56 - - - - - - 381.67
Assets written off/impairment of assets - (60.28) (798.50) (0.86) (1.79) (3.68) - - - - - - (865.11)
Net carrying amount 4,869.08 2,439.30 11,147.85 86.35 141.66 170.18 13.16 3.09 - - - - 18,870.67
Note:
Buildings include `8,631.00 (as at March 31, 2020 `8,631.00) being value of investments in shares of Co-operative Housing Societies.

|
195
Standalone
(b) TANGIBLE ASSETS UNDER DEVELOPMENT

(` in crores)
For the year ended For the year ended
March 31, 2021 March 31, 2020
Balance at the beginning 1,755.51 2,146.96
Additions 1,440.24 3,208.88
Capitalised during the year (1,863.30) (3,517.93)
(Write off)/(Provision)/reversal of impairment 68.37 (82.40)
Balance at the end 1,400.82 1,755.51
4 LEASES
The Company leases a number of buildings, plant and equipment, IT hardware and software assets, certain of which have a renewal and/
or purchase option in the normal course of the business. Extension and termination options are included in a number of leases across the
Company. The majority of extension and termination options held are exercisable only by the Company and not by the respective lessor. The
Company assesses at lease commencement whether it is reasonably certain to exercise the extension or termination option. The Company
re-assesses whether it is reasonably certain to exercise options if there is a significant event or significant change in circumstances within
its control. It is recognised that there is potential for lease term assumptions to change in the future due to the effects of the COVID-19
pandemic, and this will continue to be monitored by the Company where relevant. The Company’s leases mature between 2021 and 2029.
When measuring lease liability, the Company discounted lease payments using its incremental borrowing rate at April 1, 2019. The weighted
average rate applied is 8.58 %.
The following amounts are included in the Balance Sheet :
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Current lease liabilities 96.47 83.30
Non-current lease liabilities 593.74 522.24
Total lease liabilities 690.21 605.54
The following amounts are recognised in the statement of profit and loss :
(` in crores)
March 31, 2021 March 31, 2020
Interest expense on lease liabilities 46.47 31.40

Variable lease payment not included in the measurement of lease liabilities -* 2.98
Expenses related to short-term leases 1.27 15.12
Expenses related to low-value assets, excluding short-term leases of low-value assets 3.95 3.85
*less than `50,000/-

(` in crores)
Furniture,
Computers
Plant, machinery Fixtures
Land Buildings Vehicles & other IT Total
and equipments and Office
assets
Equipments
Cost as at April 1, 2020 91.77 320.79 504.08 4.31 - 193.39 1,114.34
Additions - 89.95 217.03 - 40.50 9.60 357.08
Sale of business to a subsidiary company - - - (4.31) - (1.08) (5.39)
[refer note 49 (vi)]
Disposals/adjustments - (71.64) (96.13) - - 1.58 (166.19)
Cost as at March 31, 2021 91.77 339.10 624.98 - 40.50 203.49 1,299.84
Accumulated amortisation (1.16) (92.82) (162.41) (3.23) - (185.14) (444.76)
as at April 1, 2020
Amortisation for the year (1.13) (74.84) (92.25) (0.43) - (6.84) (175.49)
Amortisation - considered as employee cost - - - - (2.75) - (2.75)
Reversal of Impairment Loss - 6.81 31.33 - - 0.05 38.19
Sale of business to a subsidiary company - - - 3.66 - 0.88 4.54
[refer note 49 (vi)]
Disposal/adjustments - 35.00 14.02 - - - 49.02
Accumulated amortisation | (2.29) (125.85) (209.31) - (2.75) (191.05) (531.25)
Net carrying amount as at March 31, 2021 89.48 213.25 415.67 - 37.75 12.44 768.59
Cost
Adjustment on initial application of Ind AS 116 127.88 246.32 306.28 4.31 - 189.09 873.88
Additions - 76.09 197.80 - - 4.30 278.19
Disposals/adjustments (36.11) (1.62) - - - - (37.73)
Cost as at March 31, 2020 91.77 320.79 504.08 4.31 - 193.39 1,114.34
Accumulated amortisation
Adjustment on initial application of Ind AS 116 - (7.29) (35.69) (2.37) - (180.57) (225.92)
Amortisation for the year (1.16) (76.41) (90.16) (0.86) - (4.49) (173.08)
Impairment of Assets - (9.30) (36.56) - - (0.08) (45.94)
Disposal/adjustments - 0.18 - - - - 0.18
Accumulated amortisation (1.16) (92.82) (162.41) (3.23) - (185.14) (444.76)
Net carrying amount as at March 31, 2020 90.61 227.97 341.67 1.08 - 8.25 669.58
The Company has committed towards leases of plant ,machinery and equipments which have not yet commenced, for `30.00 crores as on
March 31, 2021 (`171.00 crores as on March 31, 2020).There are no leases with residual value guarantees.

Standalone
5. (a) OTHER INTANGIBLE ASSETS

(` in crores)
Technical Computer Product
Total
know how Software development
Cost as at April 1, 2020 478.15 605.13 9,533.50 10,616.78
Additions - 10.93 2,003.26 2,014.19
Sale of business to a subsidiary company [refer note 49 (vi)] - (1.76) - (1.76)
Cost as at March 31, 2021 478.15 614.30 11,536.76 12,629.21
Accumulated amortisation as at April 1, 2020 (267.42) (545.54) (4,235.18) (5,048.14)
Amortisation for the year (49.96) (24.32) (1,535.71) (1,609.99)
Reversal of Impairment loss - - 429.10 429.10
Sale of business to a subsidiary company [refer note 49 (vi)] - 1.76 - 1.76
Accumulated amortisation as at March 31, 2021 (317.39) (568.10) (5,341.78) (6,227.27)
Net carrying amount as at March 31, 2021 160.77 46.20 6,194.98 6,401.95
Cost as at April 1, 2019 360.22 585.30 7,226.79 8,172.31

Additions 120.84 21.87 3,308.32 3,451.03
Sale of business to a subsidiary company (2.91) (1.81) - (4.72)
Fully amortised not in use - (0.23) (1,001.61) (1,001.84)
Cost as at March 31, 2020 478.15 605.13 9,533.50 10,616.78
Accumulated amortisation as at April 1, 2019 (211.22) (521.52) (3,568.44) (4,301.18)
Amortisation for the year (59.11) (26.06) (1,126.35) (1,211.52)
Sale of business to a subsidiary company 2.91 1.81 - 4.72
Fully amortised not in use - 0.23 1,001.61 1,001.84
Impairment of assets - - (542.00) (542.00)
Accumulated amortisation as at March 31, 2020 (267.42) (545.54) (4,235.18) (5,048.14)
Net carrying amount as at March 31, 2020 210.73 59.59 5,298.32 5,568.64
(b) INTANGIBLE ASSETS UNDER DEVELOPMENT

(` in crores)
Intangible assets under development
March 31, 2021 March 31, 2020
Additions 764.52 2,092.54
Capitalised during the year (2,014.19) (3,330.19)
(Write off)/(Provision)/reversal of impairment 116.01 (162.69)

6. IMPAIRMENT LOSSES/(REVERSAL) OF PASSENGER VEHICLE SEGMENT AND OTHER PROVISIONS

(a) Impairment losses/(reversal) of Passenger vehicle segment
The Company tests its passenger vehicle cash generating unit (CGU) for impairment at least annually and more frequently when there is
an indication of impairment. An impairment loss is recognized if the recoverable amount is lower than the carrying value. The Company
also periodically assesses if there are any triggers for reversal of previously recognised impairment loss. A reversal of impairment loss
is recognised if there is a trigger for reversal and the recoverable value exceeds the carrying value.
As at March 31, 2020, the Company assessed the recoverable value for this CGU, due to refresh of its strategy in response to change
in market conditions on account of various factors (economic environment, demand forecasts etc.) including COVID 19 pandemic. The
recoverable value determined by Fair Value less Cost of Disposal (‘FVLCD’) was lower than the carrying value of the CGU and this
resulted in an impairment charge for the year ended March 31, 2020 recognised within ‘Exceptional items’.
As at March 31, 2021, the Company identified certain triggers for reversal of the previously recorded impairment based on both
external and internal indicators. Accordingly, the Company reassessed its estimates and determined the recoverable value for this CGU
considering the significant improvement in the absolute and relative performance and outlook of the business when compared with the
assumed performance at the time when the impairment loss was recorded. Based on this reassessment, the Company has reversed the
initially recognised impairment for this CGU.
The key drivers for this improved performance include:
1. New and Improved product portfolio
2. Product positioning in segments where the Company did not have a presence earlier
3. Revamp of dealer and service network
4. Capacity de-bottlenecking
5. Cost reduction initiatives
In addition to the above, the post COVID pent up demand was a tailwind and the changing consumer preference towards personal
mobility as well as changes to the economic outlook have improved the outlook on the industry. A combination of these factors enabled
the Company to enhance it’s market share to 8.1% for the year ended March 31, 2021 as compared to 4.8% for the year ended March
31, 2020.
The recoverable value was determined using the Fair value less cost of disposal (“FVLCD”). CGU’s FVLCD has been valued using
Comparable Company Market Multiple method (CCM). The average of enterprise value to sales multiple of Comparable Companies
applied to actual sales of the CGU for year ended March 31, 2021 has been considered as the FVLCD as per CCM. The fair value of the
CGU is as follows:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Recoverable amount 14,618.60 9,120.00
The approach and key (unobservable) assumptions used to determine the CGU’s FVLCD were as follows:
The carrying value of the CGU was `5,853.39 crores as at March 31, 2021, compared with the recoverable value of `14,618.60 crores,
determined by FVCLD and `10,588.00 crores as per VIU.
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Enterprise value to Sales multiple 1.27 0.75
The impairment loss recognised in the year ended March 31, 2020 and its subsequent reversal in the year ended March 31, 2021 was
as follows:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Property, plant and equipment [refer note 3 (a)] (530.74) 634.15
Capital work-in-progress [refer note 3 (b)] (68.37) 71.21
Right of use assets (refer note 4 ) (38.19) 45.94
Other intangible assets [refer note 5 (a)] (429.10) 542.00
Intangible assets under development [refer note 5 (b)] (116.01) 125.34
Total (1,182.41) 1,418.64

Standalone
Sensitivity to key assumptions

The change in the following assumptions used in the impairment review would, in isolation, lead to a change in FVCLD as at March 31,
2021 (although it should be noted that these sensitivities do not take account of potential mitigating actions):
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Decrease in Enterprise value (EV) to Sales multiple by 10% 1,461.86 912.00
(b) Other provisions
During the year ended March 31, 2020, a provision had been recognized for certain supplier contracts ranging from 5 to 10 years,
which had become onerous, as the Company estimated that it will procure lower quantities than committed and the costs will exceed
the future economic benefit.
As at March 31, 2021, the Company has reassessed the onerous provision created and based on the revised volume outlook a reversal
of provision aggregating `777.00 crores has been accounted. During the year the Company has also made provision for estimated
supplier claims of `114.00 crores, which are under negotiations with supplier.
7. INVESTMENTS IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES MEASURED AT COST - NON-CURRENT
(` in crores)
Face value As at As at
Number Description
per unit March 31, 2021 March 31, 2020
Equity shares
i) Subsidiaries
Unquoted
3,03,00,600 10 Tata Technologies Limited 224.10 224.10
16,36,97,694 10 TML Business Services Ltd 209.63 209.63
5,39,98,427 (GBP) 1 Tata Motors European Technical Centre 474.90 474.90
PLC, (UK) [Note 2 below]
7,900 - Tata Technologies Inc, (USA) 0.63 0.63
1,64,82,83,442 10 TMF Holdings Limited 3,570.08 3,550.00
8,67,00,000 10 Tata Marcopolo Motors Ltd 86.70 86.70
22,50,00,000 10 TML Distribution Company Ltd 225.00 225.00
2,51,16,59,418 TML Holdings Pte Ltd, (Singapore) 10,158.52 10,158.52
[Note 6 and 7 below]
1,34,523 (EUR) 31.28 Tata Hispano Motors Carrocera S.A., (Spain) 17.97 17.97
1,220 (IDR) 8,855 PT Tata Motors Indonesia 0.01 0.01
2,02,000 (MAD) 1,000 Tata Hispano Motors Carroceries 49.59 49.59
Maghreb S.A., (Morocco)
1,83,59,203 (SGD) 1 Tata Precision Industries Pte. Ltd, (Singapore) 40.53 40.53
Trilix Srl., Turin (Italy) [Note 4 below] 19.91 19.91
Tata Motors Insurance Broking and 19.31 19.31
Advisory Services Ltd
1,00,000 (NGN) 1 TMNL Motor Services Nigeria Ltd 0.00 # 0.00 #
98,97,908 10 Brabo Robotics and Automation Ltd 13.00 13.00
5,000,000 10 JT Special Vehicle (P) Ltd. (a wholly 2.52 -
owned subsidiary w.e.f August 11,
2020) [25,00,000 equity shares
acquired during the period]
15,112.40 15,089.80
Less: Provision for impairment (824.60) 14,287.80 (766.97) 14,322.83

(` in crores)
Number Description
ii) Associates
Quoted
29,82,214 10 Automobile Corporation of Goa Ltd 108.22 108.22
Unquoted
16,000 (TK) 1,000 NITA Co. Ltd (Bangladesh) 1.27 1.27
4,54,28,572 10 Tata Hitachi Construction Machinery 238.50 238.50
Company Private Ltd
5,23,33,170 10 Tata AutoComp Systems Ltd 77.47 425.46 77.47 425.46
(iii) Joint Ventures (JV)

Unquoted
25,00,000 10 JT Special Vehicle (P) Ltd - 2.50
Less: Provision for impairment - - (2.50) -
(iv) Subsidiaries
Cumulative convertible preference
shares (unquoted)
4,34,00,000 100 TMF Holdings Limited 434.00 434.00
Total 15,147.26 15,182.29

# Less than `50,000
Notes:
(1) Market Value of quoted investments 121.35 87.59
(2) The Company has given a letter of comfort to ANZ Bank, London for GBP 2 million (`20.15 crores as at March 31, 2021) against loan
extended by the bank to Tata Motors European Technical Centre PLC. UK (TMETC). Also the Company has given an undertaking to ANZ Bank,
London to retain 51% ownership of TMETC at all times during the tenor of the loan.
(3) Includes option pricing value for call/ put option provided by the Company towards perpetual debt issued by TMF Holdings Limited.
(4) The Company has given a letter of comfort to Unicredit S.P.A., Italy for EUR 1.5 million (`12.87 crores as on March 31, 2021) against Credit
Facility given to Trilix S.R.L. The Company will not dilute its stake in Trilix S.R.L. below 51% during the tenor of the facility.
(5) The Company has given a letter of comfort to Bank of China, Shanghai Branch for RMB 5,000 million (`5,578.50 crores as at March 31, 2021)
against loan granted by the bank to Jaguar Land Rover (China) Investment Co. Ltd.
(6) The Company has given a letter of comfort to State Bank of India, Bahrain for USD 100 milion (`731.13 crores as on March 31, 2021)
against Credit Facility given to TML Holding PTE Ltd., Singapore and a letter of comfort to Bank of Baroda, London for GBP 100 milion
(`1,007.66 crores as on March 31, 2021) against the SBLC Facility extended to TML Holding PTE Ltd., Singapore.
(7) The Company has given a letter of comfort to Citi Corp International for USD 300 milion (`2,193.38 crores as on March 31, 2021) given to
TML Holding PTE Ltd., Singapore against ECB Bonds

Standalone
8. INVESTMENTS-NON-CURRENT
(` in crores)
Number Description
Investment in equity shares measured at fair value through other
comprehensive income
Quoted
54,96,295 10 Tata Steel Ltd 446.23 138.64
Tata Steel Ltd (partly paid) - 1.05
[3,54,599 equity shares converted during the year]
Metal Scrap Trade Corporation Ltd. - 446.23 1.27 140.96
[1,60,000 equity shares sold during the year]
Unquoted
75,000 1,000 Tata International Ltd 150.69 58.09
[25,000 equity shares acquired during the year]
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 183.19 183.19
33,600 100 Kulkarni Engineering Associates Ltd - -
12,375 1,000 Tata Sons Pvt Ltd 95.20 68.75
2,25,00,001 10 Haldia Petrochemicals Ltd 74.70 75.49
2,40,000 10 Oriental Floratech (India) Pvt. Ltd - -
43,26,651 15 Tata Capital Ltd 17.44 21.89
50,000 10 NICCO Jubilee Park Ltd. 0.05 521.42 0.05 407.61
Total 967.65 548.57
Note:
a) Investment in equity shares measured at fair value through other comprehensive income also include:
(Amount in `)
Number Description
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
b)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(1) Book Value of quoted investments 446.23 140.96
(2) Book Value of unquoted investments 521.42 407.61
(3) Market Value of quoted investments 446.23 140.96

9. INVESTMENTS-CURRENT
(` in crores)
Face value As at March As at March
Number Description
per unit 31, 2021 31, 2020
Investments in Mutual funds measured at Fair value through profit and loss
Unquoted
Mutual funds 1,578.26 885.31
Total 1,578.26 885.31
Note:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Book Value of unquoted investments 1,578.26 885.31
10. LOANS AND ADVANCES- NON CURRENT

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Unsecured :
(a) Loans to employees 24.26 28.33
(b) Loan to subsidiaries
Considered good 12.04 12.04
Credit impaired 616.59 593.54
628.63 605.58
Less : Allowances for credit impaired balances (616.59) 12.04 (593.54) 12.04
(c) Loan to Joint Venture
Considered good - -
Credit impaired - 3.75
- 3.75
Less : Allowances for credit impaired balances - - (3.75) -
(d) Dues from subsidiary companies, credit impaired

Tata Hispano Motors Carrocera S.A. 53.74 53.74
Less : Allowances for credit impaired balances (53.74) - (53.74) -
(e) Deposits
54.80 56.31
(f) Others
38.69 45.12
Total 126.05 138.46

Standalone
11. LOANS AND ADVANCES- CURRENT

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Secured :
Finance receivables 13.44 13.44
(net of allowances for credit impaired balances of `5.27 crores and `5.20 crores as at March 31,
2021 and 2020, respectively)
Unsecured :
(a) Advances and other receivables 80.80 171.11
(net of allowances for credit impaired balances of `73.41 crores and `83.14 crores as at March
31, 2021 and 2020, respectively)
(b) Intercorporate deposits
Considered good 30.00 -
Credit impaired - 12.07
30.00 12.07
Less : Allowances for credit impaired balances - 30.00 (12.07) -
(c) Dues from subsidiary companies (Note below)

18.56 7.52
(d) Loan to subsidiary companies

(i) Tata Motors European Technical Centre Plc, (UK) 42.82 39.74
(ii) Tata Precision Industries Pte.Ltd - 42.82 0.53 40.27
Total 185.42 232.14
Note:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Dues from subsidiary companies:
(a) TML Business Analytics Services Limited 16.33 -
(b) PT Tata Motors Indonesia 0.90 3.75
(c) Tata Motors Insurance Broking and Advisory Services Ltd - 0.05
(d) Tata Motors (SA) (Proprietary) Ltd 1.08 1.08
(e) Tata Motors Nigeria Ltd 0.20 0.20
(f) PT Tata Motors Distribusi Indonesia - 2.36
(g) Jaguar Land Rover Ltd - 0.07
(h) Brabo Robotics and Automation Ltd 0.05 -
(i) Tata Precision Industries Pte Ltd (Singapore) - 0.01
18.56 7.52

12. OTHER FINANCIAL ASSETS - NON-CURRENT

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Derivative financial instruments 750.19 832.06
(b) Restricted deposits 4.02 4.18
(c) Finance lease receivable 207.13 92.74
(d) Government incentives 639.22 560.89
(e) Recoverable from suppliers 30.00 21.82
(f) Others 1.27 1.27
Total 1,631.83 1,512.96
13. OTHER FINANCIAL ASSETS - CURRENT

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(b) Interest accrued on loans and deposits 17.95 19.44
(c) Deposit with financial institutions (refer note below) 1,000.00 750.00
(d) Finance lease receivable 36.16 12.47
(e) Government incentives 501.11 429.69
(f) Recoverable from suppliers 170.59 199.42
Total 1,745.06 1,546.56
Note:
Earmarked deposits with financial institutions as at March 31, 2021 of `100.00 crores (as at March 31, 2020 `Nil) is held as security in
relation to repayment of borrowings.
14. OTHER NON-CURRENT ASSETS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Capital advances 201.12 332.19
(b) Taxes recoverable, statutory deposits and dues from government 812.41 635.65
(net of allowances for credit impaired balances of `31.66 crores and `Nil as at March 31, 2021
and 2020, respectively)
(c) Recoverable from Insurance companies 166.72 231.17
(d) Others 7.16 9.07
Total 1,187.41 1,208.08

Standalone
15. OTHER CURRENT ASSETS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Advance to suppliers and contractors 439.13 398.67
(net of allowances for credit impaired balances of `58.21 crores and `44.98 crores as at March
31, 2021 and 2020, respectively)
(b) Taxes recoverable, statutory deposits and dues from government (net of allowances for 530.26 831.66
credit impaired balances of `83.19 crores and `57.75 crores as at March 31, 2021 and 2020,
respectively)
(c) Prepaid expenses 127.37 97.27
(d) Recoverable from Insurance companies 18.89 11.58
(e) Employee benefits 43.66 3.10
(f) Others 7.58 29.23
Total 1,166.89 1,371.51
16. INVENTORIES
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Raw materials and components 2,063.96 1,415.65
(b) Work-in-progress 523.34 703.89
(c) Finished goods 1,486.93 1,237.36
(d) Stores and spare parts 177.91 182.52
(e) Consumable tools 35.23 37.97
(f) Goods-in-transit - Raw materials and components 264.34 254.53
Total 4,551.71 3,831.92
During the year ended March 31, 2021 and 2020, the Company recorded inventory write-down expenses of `45.58 crores and `84.50
crores, respectively.
Cost of inventories (including cost of purchased products) recognized as expense during the year ended March 31, 2021 and 2020 amounted
to `44,043.06 crores and `41,458.83 crores, respectively.
17. TRADE RECEIVABLES (UNSECURED)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Receivables considered good 2,087.51 1,978.06
Credit impaired receivables 584.78 639.75
2,672.29 2,617.81
Less : Allowance for credit impaired receivables (584.78) (639.75)
Total 2,087.51 1,978.06
18. ALLOWANCE FOR TRADE RECEIVABLES, LOANS AND OTHER RECEIVABLES

(` in crores)
March 31, 2021 March 31, 2020
Allowances made during the year * 102.69 65.35
Provision for loan/intercorporate deposits given to subsidiary companies 23.05 23.60
Written off (112.95) (74.32)
* Includes `29.32 crores netted off in revenue (`34.44 crores as at March 31, 2020)
19. CASH AND CASH EQUIVALENTS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Cash on hand 0.05 0.10
(b) Cheques on hand 10.50 4.56
(c) Balances with banks (refer note below) 808.49 1,451.64
(d) Deposits with banks 1,546.50 689.00
2,365.54 2,145.30
Note:
Includes remittances in transit 173.50 1.15
20. OTHER BANK BALANCES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
With upto 12 months maturity:
(a) Earmarked balances with banks (refer note (i) and (ii) below) 450.85 212.91
(b) Bank deposits 1,502.55 1,173.98
Total 1,953.40 1,386.89
Note:
(i) Earmarked balances with banks as at March 31, 2021 of `316.83 crores (as at March 31, 2020 `198.19 crores) is held as security in
relation to repayment of borrowings.
(ii) Earmarked balances with banks as at March 31, 2021 includes restricted deposits of `73.47 crores (as at March 31, 2020 `Nil) towards
Company’s contribution for Family Pension from October 1, 2019, in lieu of Tata Motors Pension Trust exemption surrender application
pending with Employee Provident Fund Organization. Subsequent to the year end, these balances are transferred to Tata Motors
Pension Trust.

Standalone
21. EQUITY SHARE CAPITAL

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Authorised:
(i) 400,00,00,000 Ordinary shares of `2 each 800.00 800.00
(as at March 31, 2020: 400,00,00,000 Ordinary shares of `2 each)
(ii) 100,00,00,000 'A' Ordinary shares of `2 each 200.00 200.00
(as at March 31, 2020: 100 ,00,00,000 ‘A’ Ordinary shares of `2 each)
(iii) 30,00,00,000 Convertible Cumulative Preference shares of `100 each 3,000.00 3,000.00
(as at March 31, 2020: 30,00,00,000 shares of `100 each)
Total 4,000.00 4,000.00
(b) Issued: [Note (h) and (i)]

(i) 3,32,08,00,324 Ordinary shares of `2 each 664.16 617.89
(as at March 31, 2020: 3,08,94,66,453 Ordinary shares of `2 each)
(as at March 31, 2020: 50,87,36,110 ‘A’ Ordinary shares of `2 each)
Total 765.91 719.64
(c) Subscribed and called up: [Note (h)]

(as at March 31, 2020: 3,08,89,73,894 Ordinary shares of `2 each)
765.76 719.49
(d) Calls unpaid - Ordinary shares
310 Ordinary shares of `2 each (`1 outstanding on each) and 260 Ordinary shares of `2 each (0.00)* (0.00)*
(`0.50 outstanding on each)
(as at March 31, 2020: 310 Ordinary shares of `2 each (`1 outstanding on each) and 260 Ordinary
shares of `2 each (`0.50 outstanding on each)
(e) Paid-up (c+d): 765.76 719.49
(f) Forfeited - Ordinary shares 0.05 0.05
Total (e+f) 765.81 719.54
(g) The movement of number of shares and share capital
Year ended March 31, 2021 Year ended March 31, 2020
(No. of shares) (` in crores) (No. of shares) (` in crores)
(i) Ordinary shares
Balance as at April 1 308,89,73,894 617.79 288,73,48,694 577.47
Add: Preferential allotment of shares/conversion of 23,13,33,871 46.27 20,16,23,407 40.32
share warrants (Refer Note (h) below)
Add: Allotment of shares held in abeyance - - 1,793 0.00
Balance as at March 31 332,03,07,765 664.06 308,89,73,894 617.79
(ii) 'A' Ordinary shares
Add: Allotment of shares held in abeyance - - 525 0.00
*less than `50,000/-

(h) During the year ended March 31, 2020, the Company has allotted 20,16,23,407 Ordinary Shares at a price of `150 per Ordinary
Share aggregating to `3,024.35 crores and 23,13,33,871 Convertible Warrants (‘Warrants’), each carrying a right to subscribe to one
Ordinary Share per Warrant, at a price of `150 per Warrant (‘Warrant Price’), aggregating to `3,470.00 crores on a preferential basis to
Tata Sons Private Limited. An amount equivalent to 25% of the Warrant Price was paid at the time of subscription and the balance 75%
of the Warrant Price was payable by the Warrant holder against each Warrant at the time of allotment of Ordinary Shares pursuant
to exercise of the options attached to Warrant(s) to subscribe to Ordinary Share(s) by June 2021.The Company has fully utilised the
amount of `3,891.85 crores towards repayment of debt and other general corporate purposes of the Company and its subsidiaries.
During the quarter and year ended March 31, 2021, on exercise of options by Tata Sons Pvt Ltd and on receipt of the balance subscription
money of `2,602.51 crores, the Company has fully converted 23,13,33,871 convertible warrants into Ordinary Shares, that were
issued during the year ended March 31, 2020. The Company has not utilised any of this amount as at March 31, 2021.
(i) The entitlements to 4,92,559 Ordinary shares of `2 each (as at March 31, 2020 : 4,92,559 Ordinary shares of `2 each) and 2,33,214
‘A’ Ordinary shares of `2 each (as at March 31, 2020: 2,33,214 ‘A’ Ordinary shares of `2 each) are subject matter of various suits filed
in the courts / forums by third parties for which final order is awaited and hence kept in abeyance.
(j) Rights, preferences and restrictions attached to shares :
(i) Ordinary shares and ‘A’ Ordinary shares both of `2 each :
• 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 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. Further, the Board of Directors may also declare an interim dividend. 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) :
• Each ADS and GDS underlying the ADR and GDR respectively represents five Ordinary shares of `2 each. A holder of ADS
and GDS is not entitled to attend or vote at shareholders meetings. An ADS holder is entitled to issue voting instructions
to the Depository with respect to the Ordinary shares represented by ADSs only in accordance with the provisions of the
Company’s ADSs deposit agreement and Indian Law. The depository for the ADSs and GDSs shall exercise voting rights
in respect of the deposited shares by issue of an appropriate proxy or power of attorney in terms of the respective deposit
agreements.
• Shares issued upon conversion of ADSs and GDSs will rank pari passu with the existing Ordinary shares of `2 each in all
respects including entitlement of the dividend declared.
(k) Number of shares held by each shareholder holding more than 5 percent of the issued share capital :
As at March 31, 2021 As at March 31, 2020

% of Issued % of Issued
No. of Shares No. of Shares
Share Capital Share Capital
(i) Ordinary shares :
(a) Tata Sons Private Limited 43.73% 1,45,21,13,801 39.52% 1,22,07,79,930
(b) Citibank N.A. as Depository # 35,37,15,165 # 32,07,93,365
(ii) 'A' Ordinary shares :

(a) Tata Sons Private Limited 7.57% 3,85,11,281 5.26% 2,67,22,401
(b) ICICI Prudential Equity & Debt Fund 14.26% 7,25,19,454 11.03% 5,60,75,659
(c) Franklin India Equity Advantage Fund * * 12.84% 6,52,79,915
(d) Government Of Singapore * * 5.74% 2,92,11,889
# held by Citibank, N.A. as depository for American Depository Receipts (ADRs) and Global Depository Receipts (GDRs)
* Less than 5%

Standalone
(l) Information regarding issue of shares in the last five years

(a) The Company has not issued any shares without payment being received in cash.
(b) The Company has not issued any bonus shares.
(c) The Company has not undertaken any buy-back of shares.
22. A) OTHER COMPONENTS OF EQUITY

(a) The movement of Equity instruments through Other Comprehensive Income is as follows:
(` in crores)
March 31, 2021 March 31, 2020
Balance at the beginning (56.00) 62.26
Other comprehensive income/(loss) for the year 365.84 (115.72)
Income tax relating to gain/loss arising on other comprehensive income where applicable (17.78) (2.54)
Profit on sale of equity investment reclassified to retained earnings (4.36) -
Balance at the end 287.70 (56.00)
(b) The movement of Hedging reserve is as follows:

(` in crores)
March 31, 2021 March 31, 2020
Balance at the beginning (168.55) (26.40)
Gain/(loss) recognised on cash flow hedges 63.58 (201.51)
Income tax relating to gain/loss recognised on cash flow hedges (22.22) 70.42
(Gain)/loss reclassified to profit or loss 39.99 (17.00)
Income tax relating to gain/loss reclassified to profit or loss (13.97) 5.94
Balance at the end (101.17) (168.55)
(c) The movement of Cost of Hedging reserve is as follows:

(` in crores)
March 31, 2021 March 31, 2020
Gain/(loss) recognised on cash flow hedges (1.22) (65.77)
Income tax relating to gain/loss recognised on cash flow hedges 0.42 22.98
(Gain)/loss reclassified to profit and loss 65.77 (9.91)
Income tax relating to gain/loss reclassified to profit and loss (22.98) 3.46
Balance at the end (0.80) (42.79)
(d) Summary of Other components of equity:
(` in crores)
March 31, 2021 March 31, 2020
Equity instruments through other comprehensive income 287.70 (56.00)
Hedging reserve (101.17) (168.55)
Cost of hedging reserve (0.80) (42.79)
Total 185.72 (267.34)

(B) Notes to reserves

a) Capital redemption reserve
The Indian Companies Act, 2013 (the “Companies Act”) requires that where a company purchases its own shares out of free
reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to a
capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet. The capital redemption
reserve account may be applied by the company, in paying up unissued shares of the company to be issued to shareholders of
the company as fully paid bonus shares. Tata Motors Limited established this reserve pursuant to the redemption of preference
shares issued in earlier years.
b) Debenture redemption reserve (DRR)
The Companies Act requires that where a company issues debentures, it shall create a debenture redemption reserve out of
profits of the Company available for payment of dividend. The company is required to maintain a Debenture Redemption Reserve
of 25% of the value of debentures issued, either by a public issue or on a private placement basis. The amounts credited to
the debenture redemption reserve may not be utilised by the Company except to redeem debentures. No DRR is required for
debentures issued after August 16, 2019.
c) Securities premium
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.
e) Capital reserve
The capital reserve represents the excess of the identifiable assets and liabilities over the consideration paid.
f) Dividends
The final dividend is recommended by the Board of Directors and is recorded in the books of accounts upon its approval by
the Shareholders. For the year ended March 31, 2021 and 2020 , considering the accumulated losses in the Tata Motors
Limited Standalone, no dividend was permitted to be paid to the members, as per the Companies Act, 2013 and the rules framed
thereunder.
g) Share-based payments reserve
Share-based payments reserve represents amount of fair value, as on the date of grant, of unvested options and vested options
not exercised till date, that have been recognised as expense in the statement of profit and loss till date.
23. LONG-TERM BORROWINGS
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Secured:
(a) Privately placed Non-Convertible Debentures (refer note I (ii)) 997.46 -
(b) Term loans:
(i) from banks (refer note I (i) (d) below) 521.07 614.93
(ii) from financial institutions (refer note I (i) (a) below) 2,992.85 -
(iii) others (refer note I (i) (b) and I (i) (c) below) 214.01 178.82
4,725.39 793.75
Unsecured:
(a) Privately placed Non-Convertible Debentures (refer note I (ii)) 2,799.75 5,199.04
(b) Term loan from banks
(i) Buyer's line of credit (at floating interest rate) (refer note I (v)) 3,083.33 2,875.00
(ii) External commercial borrowings (ECB) 1,721.12 1,777.91
(at floating interest rate) (refer note I (iv))
(c) Senior Notes (refer note I (iii)) 3,997.18 4,130.81
11,601.38 13,982.76
Total 16,326.77 14,776.51

Standalone
24. SHORT-TERM BORROWINGS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Secured:
Loans from banks (refer note II (i)) 1,301.69 3,334.02
1,301.69 3,334.02
Unsecured:
(a) Loans from banks (refer note II (i)) 82.97 1,578.95
(b) Inter corporate deposits from subsidiaries and associates (refer note II (ii)) 467.00 137.50
(c) Commercial paper (refer note II (iii)) 690.84 1,070.89
1,240.81 2,787.34
Total 2,542.50 6,121.36
I. Information regarding long-term borrowings
(i) Nature of security (on loans including interest accrued thereon) :
(a) The term loan of `3,000.00 crores from HDFC Ltd, (recorded in books at `2,992.85 crores) is due for repayment from the quarter ending
June 30, 2022 to quarter ending June 30, 2026, along with a simple interest of 8.50% p.a. The loan is secured by a charge over Company’s
leasehold land together with building structures, plant and machinery, fixtures and other assets.
(b) The term loan of `587.08 crores (recorded in books at `176.67 crores) is due for repayment from the quarter ending March 31, 2033
to quarter ending March 31, 2039, along with simple interest at the rate of 0.10% p.a. The loan is secured by a second and subservient
charge (creation of charge is under process) over Company’s freehold land together with immovable properties, plant and machinery and
other movable assets (excluding stock and book debts) situated at Sanand plant in the State of Gujarat.
(c) The term loan of `112.82 crores (recorded in books at `37.34 crores) is due for repayment from the quarter ending June 30, 2030
to March 31, 2034, along with a simple interest of 0.01% p.a. The loan is secured by bank guarantee for the due performance of the
conditions as per the terms of the agreement.
(d) Term loan from banks of `521.07 crores included within Long-term borrowings and `187.89 crores included within Current maturities of
Long-term borrowings in note 26, bearing floating interest rate of 1 month LIBOR+1.63% and 6 months MCLR+0.60% are taken by joint
operation Fiat India Automobiles Private Ltd which is due for repayment from June 2021 to September 2025. The loan is secured by first
charge over movable fixed assets procured from its loan/jeep project.

(ii) Schedule of repayment and redemption for Non-Convertible Debentures :

(` in crores)
Non-Convertible Debentures (NCDs) Redeemable on Principal
Secured :
8.80% Non-Convertible Debentures (2023) May 26, 2023 1,000.00
Debt issue cost (2.54)
Total 997.46
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.
Unsecured :
8.50% Non-Convertible Debentures (2027) January 29, 2027 250.00
8.50% Non-Convertible Debentures (2026) December 30, 2026 250.00
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
9.60% Non-Convertible Debentures (2022) October 29, 2022 400.00
7.50% Non-Convertible Debentures (E27H Series) June 22, 2022 500.00
7.71% Non-Convertible Debentures (2022) March 3, 2022* 500.00
9.02% Non-Convertible Debentures (2021) December 10, 2021* 300.00
7.50% Non-Convertible Debentures (2021) October 20, 2021* 300.00
7.84% Non-Convertible Debentures (2021) September 27, 2021* 500.00
8.40% Non-Convertible Debentures (2021) May 26, 2021* 300.00
7.40% Non-Convertible Debentures 2021(E27I Series Tranche 2) June 29, 2021* 500.00
Debt issue cost (0.47)
Total 5,199.53
* Classified as other financial liabilities- current (refer note 26) being maturity before March 31, 2022
(iii) Schedule of repayment of Senior Notes:
(` in crores)
Amount As at As at
Redeemable on Currency
(in million) March 31, 2021 March 31, 2020
4.625% Senior Notes April 30, 2020 USD 262.532 - 1,986.27

5.750% Senior Notes October 30, 2024 USD 250 1,816.07 1,876.36
5.875% Senior Notes May 20, 2025 USD 300 2,181.11 2,254.45
3,997.18 6,117.08
(iv) The external commercial borrowings of USD 237.47 million (`1,721.12 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 6.42% to 8.85%, amounting to `3,083.33 crores is
repayable within a maximum period of seven years from the drawdown dates. All the repayments are due from period ending
September 30, 2021 to June 30, 2026. The Buyer’s line of credit of `291.67 crores classified under other financial liabilities-
current being maturity before March 31, 2022.

Standalone
II. Information regarding short-term borrowings

(i) Loans, cash credits, overdrafts and buyers line of credit from banks bearing fixed interest rate from 5.05% to 7.00% are secured
by hypothecation of existing current assets of the Company viz. stock of raw materials, stock in process, semi-finished goods,
stores and spares not relating to plant and machinery (consumable stores and spares), bills receivable and book debts including
receivable from hire purchase / leasing and all other moveable current assets except cash and bank balances, loans and advances
of the Company both present and future.
(ii) Inter-corporate deposits from subsidiaries and associates are unsecured bearing interest rate at 6.00%
(iii) Commercial paper are unsecured short-term papers issued at discount bearing no coupon interest. The yield on commercial
paper issued by the Company ranges from 6.83% to 7.33%
III. Collateral
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Assets pledged as collateral/security against borrowings
Inventory 1,560.51 4,499.64
Other financial assets 100.00 52.62
Property, plant and equipment 6,302.59 1,469.43
Total 7,963.10 6,021.69
Annual disclosure for reporting of fund raising of issuance of Debt Securities by Large Corporate :
(` in crores)
Year ended
Sr No Particulars
March 31, 2021
(i) Incremental borrowing done (a) 4,500.00
(ii) Mandatory borrowing to be done through issuance of debt securities (b) = (25% of a) 1,125.00
(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) 125.00
(v) Reasons for short fall, if any, in mandatory borrowings through debt securities COVID 19- shallow market
Reconciliation of movements of liabilities to cash flows arising from financing activities

(` in crores)
Short-term Long-term
Total
borrowings borrowings *
Balance at April 1, 2019 3,617.72 15,013.20 18,630.92
Proceeds from issuance of debt 10,489.97 4,781.55 15,271.52
Repayment of financing (8,003.51) (1,124.93) (9,128.44)
Foreign exchange - 660.75 660.75
Amortisation / EIR adjustments of prepaid borrowings (net) 17.18 (7.16) 10.02
Balance at March 31, 2020 6,121.36 19,323.41 25,444.77
Balance at March 31, 2020 6,121.36 19,323.41 25,444.77
Foreign exchange - (202.01) (202.01)
Amortisation / EIR adjustments of prepaid borrowings (net) 13.60 (19.92) (6.32)
Balance at March 31, 2021 2,542.50 19,206.22 21,748.72
* includes current maturities of long term borrowings

25. OTHER FINANCIAL LIABILITIES – NON-CURRENT

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(b) Interest accrued but not due on borrowings - 1.02
(c) Liability towards employee separation scheme 132.67 75.83
(d) Option premium payable 293.55 412.12
(e) Others 66.93 125.32
Total 659.64 854.74
26. OTHER FINANCIAL LIABILITIES – CURRENT
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Current maturities of long-term borrowings (refer note 1 below) 2,879.45 4,546.90
(b) Interest accrued but not due on borrowings 368.36 398.72
(c) Liability for capital expenditure (refer note 2 below) 231.38 179.40
(d) Deposits and retention money 588.63 516.94
(e) Derivative financial instruments 9.27 39.03
(f) Liability towards Investors Education and Protection Fund under Section 125 of the Companies
Act, 2013 not due
(i) Unpaid dividends 3.01 4.57
(ii) Unpaid matured deposits and interest thereon 0.13 0.64
(iii) Unpaid debentures and interest thereon 0.18 0.18
(g) Liability towards employee separation scheme 33.63 13.93
(h) Option premium payable 110.33 91.87
(i) Liability for factoring sales 24.95 178.38
(j) Others 6.25 5.79
Total 4,255.57 5,976.35
Note:
1. Details of Current maturities of long-term borrowings :
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(i) Non Convertible Debentures (Unsecured) (refer note I (ii) 2,399.89 1,299.95
(ii) Loans from Banks (Secured)(refer note I (i) (b) 187.89 160.68
(iii) Senior notes (Unsecured) (refer note I (iii) - 1,986.27
(iv) Buyers Credit (Capex) (Unsecured) (refer note I (v) 291.67 1,100.00
Total 2,879.45 4,546.90
2. Includes `22.48 crores outstanding as at March 31, 2021 towards principal and interest provision on dues of micro enterprises and
small enterprises as per MSMED ACT 2006.
27. PROVISIONS-NON CURRENT
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Employee benefits obligations 719.72 806.04
(b) Warranty 652.17 548.40
(c) Provision for onerous contract and related supplier claims (refer note 6 (b)) - 414.75
(d) Annual maintenance contract (AMC) 0.05 0.55
Total 1,371.94 1,769.74

Standalone
28. PROVISIONS-CURRENT
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Warranty 872.38 989.19
(b) Provision for onerous contract and related supplier claims (refer note 6 (b)) 117.44 362.25
(c) Employee benefits obligations 36.64 36.56
(d) Others 17.08 18.75
Total 1,043.54 1,406.75
Note
Onerous contract and Warranty provision movement

March 31, 2021 March 31, 2021
Onerous contract Warranty
Balance at the beginning 777.00 1,537.59
Provision/(reversal) made during the year (659.56) 420.89
Provision used during the year - (557.77)
Impact of discounting - 123.84
Balance at the end 117.44 1,524.55
Current 117.44 872.38
Non-current - 652.17
29. INCOME TAXES
The reconciliation of income tax expense calculated as per tax rates applicable to individual entities with income tax expense is as follows:
(` in crores)
March 31, 2021 March 31, 2020
Profit/(loss) before tax (2,312.57) (7,127.34)
Income tax expense at tax rates applicable to individual entities (817.29) (2,490.61)
Additional deduction for patent, research and product development cost - (281.75)
Items (net) not deductible for tax/not liable to tax :
- Dividend from subsidiaries, joint operations, associates and investments measured at fair value - (84.20)
through other comprehensive income
Provision for impairment in subsidiary companies/exceptional (others) 43.11 134.75
Undistributed earnings of joint operations 63.92 6.26
Deferred tax assets not recognised as realisation is not probable 852.94 2,968.70
Utilisation/credit of unrecognised tax losses, unabsorbed depreciation and other tax benefits (129.39) (66.52)
Profit on sale of investments in a subsidiary company and other investments 1.52 -
Impact of change in statutory tax rates (1.33) (17.31)
Others 69.39 (7.03)
Income tax expense reported in statement of profit and loss 82.87 162.29
Note:
1. Tata Motors Limited (TML) has presently, decided not to opt for the New Tax Regime inserted as section 115BAA of the Income-tax Act, 1961 and
enacted by the Taxation Laws (Amendment) Ordinance, 2019 (“the Ordinance”) which is applicable from Financial Year beginning April 1, 2019. TML
has accordingly applied the existing tax rates in the financial statements for the year ended March 31, 2021.
2. In case of Tata Cummins Ltd, the new section 115BBA has been inserted in the Income tax Act, 1961 to give benefit of a reduced corporate tax rate for
domestic companies. Section 115BBA states that the domestic companies have the option to pay tax a rate of 25.168% from FY 2019-20 (AY 2020-21)
During the current year, while filing Income Tax Return for FY 19-20 the Company has adopted and shifted to the new tax regime from FY 19-20. The
impact on tax due to this rate change has been disclosed above. In the current financial year, owing to the adoption of the new tax regime, the existing
MAT credit is derecognized in the financial statements in accordance with the tax laws

Significant components of deferred tax assets and liabilities for the year ended March 31, 2021 are as follows:
Recognised in/
Recognised in
Opening balance reclassified Closing balance
profit and loss
from OCI
Deferred tax assets:
Unabsorbed depreciation 2,533.36 (78.95) - 2,454.41
Business loss carry forwards 1,232.38 483.45 - 1,715.83
Expenses deductible in future years:
- provisions, allowances for doubtful receivables and others 691.40 (202.83) - 488.57
Compensated absences and retirement benefits 199.37 (49.19) 9.17 159.35
Minimum alternate tax carry-forward 3.33 (2.56) - 0.77
Derivative financial instruments 113.37 65.27 (58.74) 119.90
Unrealised profit on inventory 1.80 1.17 - 2.97
Others 61.49 58.10 - 119.59
Total deferred tax assets 4,836.50 274.46 (49.57) 5,061.39
Deferred tax liabilities:
Property, plant and equipment 2,078.12 525.87 - 2,603.99
Intangible assets 2,740.08 (288.47) - 2,451.61
Undistributed earnings in joint operations 158.36 63.92 - 222.28
Others 58.53 (26.30) 17.78 50.01
Total deferred tax liabilities 5,035.09 275.02 17.78 5,327.89
Net Deferred tax assets / (liabilities) (198.59) (0.56) (67.35) (266.50)
As at March 31, 2021, unrecognised deferred tax assets amount to `3,348.12 crores and `7,486.53 crores which can be carried forward
indefinitely and up to a specified period, respectively. These relate primarily to depreciation carry forwards, other deductible temporary
differences and business losses. The deferred tax asset has not been recognised on the basis that its recovery is not probable in the
foreseeable future.
As at March 31, 2021 unrecognised deferred tax assets expire unutilised based on the year of origination as follows:
(` in crores)
March 31,
2022 741.24
2023 831.70
2024 698.06
2025 2,179.00
2026 614.19
Thereafter 2,422.34
(` in crores)
Recognised in Recognised in/
Opening balance Closing balance
profit and loss reclassified from OCI
Unabsorbed depreciation 2,536.12 (2.76) - 2,533.36
Business loss carry forwards 2,132.50 (900.12) - 1,232.38
- provisions, allowances for doubtful receivables and others 323.89 367.51 - 691.40
Compensated absences and retirement benefits 158.33 4.79 36.25 199.37
Minimum alternate tax carry-forward 0.77 2.56 - 3.33
Derivative financial instruments 21.20 (10.63) 102.80 113.37
Unrealised profit on inventory 1.49 0.31 - 1.80
Others 63.84 (2.35) - 61.49
Total deferred tax assets 5,238.14 (540.69) 139.05 4,836.50
Property, plant and equipment 2,581.99 (503.87) - 2,078.12
Intangible assets 2,659.17 80.91 - 2,740.08
Undistributed earnings in joint operations 152.10 6.26 - 158.36
Others 50.74 5.25 2.54 58.53
Total deferred tax liabilities 5,444.00 (411.45) 2.54 5,035.09
Deferred tax liabilities (205.86) (129.24) 136.51 (198.59)

Standalone
30. OTHER NON-CURRENT LIABILITIES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Contract liabilities (note (a) below) 305.43 134.42
(b) Government incentives (note (b) below) 41.65 62.93
(c) Employee Benefit Obligations - Funded 175.55 61.31
(d) Others 10.92 10.92
Total 533.55 269.58
31. OTHER CURRENT LIABILITIES
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Contract liabilities (note (a) below) 1,146.92 655.82
(b) Statutory dues (GST,VAT, Excise, Service Tax, Octroi etc) 928.33 464.47
(c) Government incentives (note (b) below) 116.09 154.46
(d) Others 96.16 72.88
Total 2,287.50 1,347.63
Note:
As at As at
March 31, 2021 March 31, 2020
(a) Contract liabilities
Opening contract liabilities 790.24 1,063.36
Amount recognised in revenue (375.26) (902.22)
Amount received in advance during the year 1,043.55 657.25
Amount refunded to customers (6.18) (28.15)
Closing contract liabilities 1,452.35 790.24
As at As at
March 31, 2021 March 31, 2020
Advances received from customers Current 982.45 551.43
Deferred revenue Current 164.47 104.39
Non-current 305.43 134.42
1,452.35 790.24
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, 2021 till March 31, 2026.
(b) Government incentives include `101.01 crores as at March 31, 2021 (`148.11 crores as at March 31, 2020) 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 such commitments are not met, the Company would be required to pay the duty saved along with
interest to the regulatory authorities.

32. REVENUE FROM OPERATIONS

(` in crores)
March 31, 2021 March 31, 2020
(a) Sale of products (refer note 1 and 2 below)
(i) Vehicles 39,283.64 36,583.83
(ii) Spare parts 4,464.05 4,505.79
(iii) Miscellaneous products 2,365.62 1,927.98
Total Sale of products 46,113.31 43,017.60
(b) Sale of services 446.08 468.16
Revenue 46,559.39 43,485.76
(c) Other operating revenues (refer note 3 below) 472.08 442.41
Total 47,031.47 43,928.17
Note:
(1) Includes variable marketing expenses netted off against revenue (6,452.50) (9,197.73)
(2) Includes exchange gain/(loss) (net) on hedges reclassified from hedge reserve to statement of (0.92) 0.27
profit and loss
(3) Includes profit on sale of properties 143.44 91.44
33. OTHER INCOME

(` in crores)
March 31, 2021 March 31, 2020
(a) Interest income 196.24 483.72
(b) Dividend income (refer note below) 20.45 241.22
(c) Government incentives 548.27 588.38
(d) Profit on sale of investments at FVTPL 72.80 70.16
(e) MTM – Investments measured at FVTPL 5.20 (0.43)
Total 842.96 1,383.05
Note:
Includes :
(a) Dividend from subsidiary companies and associates 2.79 221.42
(b) From investment measured at FVTOCI 17.66 19.80
34. EMPLOYEE BENEFITS EXPENSE

(` in crores)
March 31, 2021 March 31, 2020
(a) Salaries, wages and bonus * 3,590.53 3,653.34
(b) Contribution to provident fund and other funds 270.99 254.90
(c) Staff welfare expenses 351.47 476.07
Total 4,212.99 4,384.31
Share based payments
The Company has allotted share based incentives to certain employees during the year ended March 31, 2019, under Tata Motors Limited
Employee Stock Options Scheme 2018 approved by Nomination and Remuneration Committee (NRC). As per the scheme, the number of
shares that will vest is conditional upon certain performance measures 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 3 years from date of grant up to
5 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.

Standalone
(` in crores)
March 31, 2021 March 31, 2020
Options outstanding at the beginning of the year 72,22,897 78,12,427
Granted during the year - -
Forfeited/Expired during the year (4,18,894) (5,89,530)
Exercised during the year - -
Outstanding at the end of the year 68,04,003 72,22,897
Number of shares to be issued for outstanding options (conditional on performance 1,02,06,005/34,02,002 1,08,34,346/36,11,449
measures)
Maximum 1,02,06,005 1,08,34,346
Minimum 34,02,002 36,11,449
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.
(` in crores)
Estimate
Assumption factor Year ended Year ended
March 31, 2021 March 31, 2020
Risk free rate 7%-8% 7%-8%
Expected life of option 2-4 years 3-5 years
Expected volatility 33%- 37% 33%- 37%
* The amount of `9.04 crores and `4.70 crores has accrued in salaries, wages and bonus for the year ended March 31, 2021 and March 31,
2020, respectively towards share based payments.
35. FINANCE COSTS

(` in crores)
March 31, 2021 March 31, 2020
(a) Interest 2,130.17 1,973.48
Add: Exchange fluctuation considered as interest cost - 56.35
Less: Transferred to capital account (190.48) (423.76)
1,939.69 1,606.07
(b) Discounting charges 418.85 366.93
Total 2,358.54 1,973.00
Note:
The weighted average rate for capitalisation of interest relating to general borrowings were approximately 7.44% and 7.52% for the years
ended March 31, 2021 and 2020, respectively.
36. OTHER EXPENSES

(` in crores)
March 31, 2021 March 31, 2020
(a) Processing charges 953.49 1,051.13
(b) Consumption of stores & spare parts 417.57 461.37
(c) Power and fuel 371.78 428.85
(d) Freight, transportation, port charges etc. 802.84 1,077.20
(e) Publicity 444.37 846.60
(f) Warranty expenses ^ 441.54 538.36
(g) Information technology/computer expenses 728.88 764.31
(h) Allowances made/(reversed) for trade and other receivables (net) 73.37 30.91
(i) Loss on assets scrapped / written off 16.16 168.04
(j) Works operation and other expenses (note below)* 1,551.90 2,353.98
Total 5,801.90 7,720.75
* Includes rates and taxes (refer note (e) below) 50.78 369.55
^ Net of estimated recovery from suppliers (20.65) (31.74)

Note:
(` in crores)
Works operation and other expenses include:
March 31, 2021 March 31, 2020
(a) Auditors' Remuneration (excluding GST)
(i) Audit Fees 7.93 4.86
(ii) Audit fees for financial statements as per IFRS (including SOX certification) 3.41 4.90^
(iii) In other Capacities :
Tax Audit / Transfer Pricing Audit 0.62 0.61
(iv) Other Services 0.82 1.82*
(v) Reimbursement of travelling and out-of-pocket expenses 0.41 0.76
^ Amount paid to KPMG Assurance and Consulting Services LLP/Deloitte Haskins and Sells
* Includes `0.90 crores paid to BSR & Co LLP and `0.50 crores fees paid to Deloitte Haskins and
Sells LLP for issuance of Senior Notes
(b) Cost Auditors' Remuneration (excluding GST)

(i) Cost Audit Fees 0.25 0.20
(ii) Reimbursement of travelling and out-of-pocket expenses - 0.06
(c) Works operation and other expenses for the year March 31, 2021 includes `23.99 crores (`22.72 crores for the year March 31,
2020) 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. No amount has been spent on construction /
acquisition of an asset of the Company. The prescribed CSR expenditure required to be spent in the year 2020-21 as per the Companies
Act, 2013 is `Nil, in view of average net profits of the Company being `Nil (under section 198 of the Act) for last three financial years.
(d) Works operation and other expenses include remuneration payable to non- executive independent directors aggregating `1.70 crores
which is subject to approval of the shareholders, which the Company proposes to obtain in the forthcoming Annual General Meeting, in
(e) During the year ended March 31, 2020, provision for certain Indirect taxes for matters under litigation for FY 2002 to FY 2006 were
made for `241.25 crores, which is included in other expenses.
37. AMOUNT TRANSFERRED TO CAPITAL AND OTHER ACCOUNTS

(` in crores)
March 31, 2021 March 31, 2020
(a) Capital work in progress (73.50) (219.45)
(b) Intangible asset under development (353.93) (690.19)
(c) Product development/Engineering expenses (390.10) (259.82)
Total (817.53) (1,169.46)
38. EXCEPTIONAL ITEMS

Exceptional amount of `114.00 crores and `(73.03) crores during the year ended March 31, 2021 and 2020, is related to write off/provision
(reversal) of certain property, plant and equipment, capital work-in-progress and intangibles under development.

Standalone
39. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and
assertions and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The
Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in
its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in
the financial statements but does not record a liability in its accounts unless the loss becomes probable.
The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes that none
of the contingencies described below would have a material adverse effect on the Company’s financial condition, results of operations or
cash flows.
Litigation
The Company is involved in legal proceedings, both as plaintiff and as defendant. There are claims which the Company does not believe to be
of material nature, other than those described below.
Income Tax
The Company has ongoing disputes with income tax authorities relating to tax treatment of certain items. These mainly include disallowed
expenses, the tax treatment of certain expenses claimed by the Company as deductions and the computation of, or eligibility of, the Company’s
use of certain tax incentives or allowances.
Most of these disputes and/or disallowances, being repetitive in nature, have been raised by the income tax authorities consistently in most
of the years.
The Company has a right of appeal to the Commissioner of Income Tax (Appeals), or CIT (A), the Dispute Resolution Panel, or DRP, and to
the Income Tax Appellate Tribunal, or ITAT, against adverse decisions by the assessing officer, DRP or CIT (A), as applicable. The income
tax authorities have similar rights of appeal to the ITAT against adverse decisions by the CIT (A) or DRP. The Company has a further right of
appeal to the Bombay High Court or the Hon’ble Supreme Court of India against adverse decisions by the appellate authorities for matters
involving substantial question of law. The income tax authorities have similar rights of appeal.
As at March 31, 2021, there are contingent liabilities towards matters and/or disputes pending in appeal amounting to `101.89 crores
(`90.21 crores as at March 31, 2020).
Customs, Excise Duty and Service Tax
As at March 31, 2021, there are pending litigation for various matters relating to customs, excise duty and service taxes involving demands,
including interest and penalties, of `580.45 crores (`603.87 crores as at March 31, 2020). These demands challenged the basis of valuation
of the Company’s products and denied the Company’s claims of Central Value Added Tax, or CENVAT credit on inputs. The details of the
demands for more than `100 crores are as follows:
As at March 31, 2021, the Excise Authorities have raised a demand and penalty of `268.27 crores, (`268.27 crores as at March 31, 2020),
due to the classification of certain chassis (as goods transport vehicles instead of dumpers) which were sent to automotive body builders by
the Company, which the Excise Authorities claim requires the payment of the National Calamity Contingent Duty (NCCD). The Company has
obtained a technical expert certificate on the classification. The appeal is pending before the Custom Excise & Service Tax Appellate Tribunal.
Sales Tax/VAT
The total sales tax demands (including interest and penalty), that are being contested by the Company amount to `1,359.51 crores as at
March 31, 2021 (`914.12 crores as at March 31, 2020). The details of the demands for more than `100 crores are as follows:
The Sales Tax Authorities have raised demand of `326.85 crores as at March 31, 2021 (`207.80 crores as at March 31, 2020) towards
rejection of certain statutory forms for concessional lower/nil tax rate (Form F and Form C) on technical grounds and few other issues such as
late submission, single form issued against different months / quarters dispatches / sales, etc. and denial of exemption from tax in absence of
proof of export for certain years. The Company has contended that the benefit cannot be denied on technicalities, which are being complied
with. The matter is pending at various levels.
The Sales Tax authorities have denied input tax credit and levied interest and penalty thereon due to varied reasons aggregating to `270.50
crores as at March 31, 2021 (`221.77 crores as at March 31, 2020). The reasons for disallowing credit was mainly due to Taxes not paid
by Vendors, incorrect method of calculation of set off as per the department, alleging suppression of sales as per the department etc. The
matter is contested in appeal.

The Sales Tax authorities have raised demand for Check post/ Entry Tax liability at various states amounting to `434.59 crores as at March
31, 2021 (`65.81 crores as at March 31, 2020). The company is contesting this issue.
The Sales Tax Authorities have raised demand of `148.84 crores as at March 31, 2021 (`148.84 crores as at March 31, 2020) towards full
CST liability on Chassis exported after enroot body building and interest thereon considering as CST sale. The Company has contended
that the Company’s manufacturing plant dispatching chassis for enroot body building to bodybuilders as bill to the Company and ship to
bodybuilders is constituted as export sale after Chassis export. The matter is contested in appeal.
Other Taxes and Dues
Other amounts for which the Company may contingently be liable aggregate to `231.53 crores as at March 31, 2021 (`288.17 crores as at
March 31, 2020). Following are the cases involving more than `100 crores:
Other claims
The Hon’ble Supreme Court of India (“SC”) by their order dated February 28, 2019, set out the principles based on which allowances paid
to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. There
are interpretative challenges and considerable uncertainty, including estimating the amount retrospectively. Pending the directions from
the EPFO, the impact for past periods, if any, is not ascertainable reliably and consequently no financial effect has been provided for in the
financial statements. The Company has complied with this on a prospective basis, from the date of the SC order.
The Company has, consequent to an Order of the Hon’ble Supreme Court of India in the case of R.C.Gupta Ors. Vs Regional Provident Fund
Organisation and Ors., evaluated the impact on its employee pension scheme and concluded that this is not applicable to the Company based
on external legal opinion and hence it is not probable that there will be an outflow of resources. Further, a Supreme Court of India bench,
allowed the review petitions filed by the Employees Provident Fund Organisation (EPFO) and decided to reconsider the previous order that
permitted grant of Provident Fund pension on last drawn salary. The Supreme Court has recalled its 2019 order which had paved way for
pension on last drawn salary for employees by removing the current salary ceiling of `15,000.
Commitments
The Company has entered into various contracts with vendors and contractors for the acquisition of plant and machinery, equipment and
various civil contracts of a capital nature amounting to `957.16 crores as at March 31, 2021 (`1,320.67 crores as at March 31, 2020), which
are yet to be executed.
The Company has entered into various contracts with vendors and contractors for the acquisition of intangible assets of a capital nature
amounting to `99.64 crores as at March 31, 2021, (`146.15 crores as at March 31, 2020), which are yet to be executed.
The Company has contractual obligation towards Purchase Commitment (net of provisions) for `2024.00 crores as at March 31, 2021
(`1,374.00 crores as at March 31, 2020).
40. EARNINGS/(LOSS) PER SHARE (“EPS”)
(` in crores)
March 31, 2021 March 31, 2020
(a) Profit/(loss) after tax ` crores (2,395.44) (7,289.63)
(b) The weighted average number of Ordinary shares for Basic EPS Nos. 3,128,268,742 2,952,353,090
(c) The weighted average number of 'A' Ordinary shares for Basic EPS Nos. 508,502,896 508,502,473
(d) The nominal value per share (Ordinary and 'A' Ordinary) ` 2 2
(e) Share of profit / (loss) for Ordinary shares for Basic EPS ` crores (2,060.50) (6,218.57)
(f) Share of profit / (loss) for 'A' Ordinary shares for Basic EPS * ` crores (334.94) (1,071.06)
(g) Earnings per Ordinary share (Basic) ` (6.59) (21.06)
(h) Earnings per 'A' Ordinary share (Basic) ` (6.59) (21.06)
(i) Profit after tax for Diluted EPS ` crores # #

Standalone
(j) The weighted average number of Ordinary shares for Basic EPS Nos. # #
(k) Add: Adjustment for shares held in abeyance Nos. # #
(l) Add: Adjustment for Options relating to warrants Nos. # #
(m) The weighted average number of Ordinary shares for Diluted EPS Nos. # #
(n) The weighted average number of 'A' Ordinary shares for Basic EPS Nos. # #
(o) Add: Adjustment for 'A' Ordinary shares held in abeyance Nos. # #
(p) The weighted average number of 'A' Ordinary shares for Diluted EPS Nos. # #
(q) Share of profit for Ordinary shares for Diluted EPS ` crores # #
(r) Share of profit for 'A' Ordinary shares for Diluted EPS * ` crores # #
(s) Earnings per Ordinary share (Diluted) ` (6.59) (21.06)
(t) Earnings per 'A' Ordinary share (Diluted) ` (6.59) (21.06)
* ‘A’ Ordinary Shareholders are entitled to receive dividend @ 5% points more than the aggregate rate of dividend determined by the Company
on Ordinary Shares for the financial year.
# Since there is a loss for the year ended March 31, 2021, potential equity shares are not considered as dilutive and hence Diluted EPS is
same as Basic EPS.
Employee Stock options are not considered to be dilutive based on the average market price of ordinary shares during the period.
41. CAPITAL MANAGEMENT
The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term
goals of the Company.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic
investment plans. The funding requirements are met through equity, non-convertible debentures, senior notes and other long-term/short-
term borrowings. The Company’s policy is aimed at combination of short-term and long-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the
Company.
Total borrowings includes all long and short-term borrowings as disclosed in notes 23, 24 and 26 (a) to the financial statements. Equity
comprises all components excluding (profit)/loss on cash flow hedges.
The following table summarises the capital of the Company:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Equity 19,157.94 18,598.99
Short-term borrowings and current maturities of long-term borrowings 5,421.95 10,668.26
Long-term borrowings 16,326.77 14,776.51
Total borrowings 21,748.72 25,444.77
Total capital (Debt + Equity) 40,906.66 44,043.76
Total equity as reported in balance sheet 19,055.97 18,387.65

Hedging reserve 101.17 168.55
Cost of Hedge reserve 0.80 42.79
Equity as reported above 19,157.94 18,598.99

42. DISCLOSURES ON FINANCIAL INSTRUMENTS

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial
instruments.
(a) Financial assets and liabilities
The following table presents the carrying amounts and fair value of each category of financial assets and liabilities as at March 31, 2021.
(` in crores)
Derivatives other
Derivatives
Cash, and other than in hedging
Investments - Investments - in hedging Total carrying
financial assets at relationship (at Total fair value
FVTOCI FVTPL relationship (at fair value
amortised cost fair value through
value)
profit or loss)
Financial assets
(a) Investments - non-current - 967.65 - - - 967.65 967.65
(b) Investments - current - - 1,578.26 - - 1,578.26 1,578.26
(c) Trade receivables 2,087.51 - - - - 2,087.51 2,087.51
(d) Cash and cash equivalents 2,365.54 - - - - 2,365.54 2,365.54
(e) Other bank balances 1,953.40 - - - - 1,953.40 1,953.40
(f) Loans and advances - non-current 126.05 - - - - 126.05 126.05
(g) Loans and advances - current 185.42 - - - - 185.42 185.42

(h) Other financial assets - non-current 881.64 - - 243.55 506.64 1,631.83 1,631.83
(i) Other financial assets - current 1,725.81 - - 15.94 3.31 1,745.06 1,745.06
Total 9,325.37 967.65 1,578.26 259.49 509.95 12,640.72 12,640.72
Derivatives
Derivatives
other than Other financial Total
in hedging
in hedging liabilities (at carrying Total fair value
relationship (at fair
relationship (at fair amortised cost) value
value)
value)
Financial liabilities
(a) Long-term borrowings (including Current maturities of long-term borrowings) - - 19,206.22 19,206.22 19,585.77
(b) Lease liabilities- non current - - 593.74 593.74 602.07
(c) Short-term borrowings - - 2,542.50 2,542.50 2,542.50
(d) Lease liabilities- current - - 96.47 96.47 96.47
(e) Trade payables - - 8,115.01 8,115.01 8,115.01

(f) Acceptances - - 7,873.12 7,873.12 7,873.12
(g) Other financial liabilities - non-current 13.56 152.93 493.15 659.64 659.64
(h) Other financial liabilities - current 7.30 1.97 1,366.85 1,376.12 1,376.12

Total 20.86 154.90 40,287.06 40,462.82 40,850.70
|
225
226
|
(` in crores)
Derivatives other
Derivatives
Cash, and other than in hedging
Investments - Investments - in hedging Total carrying
financial assets at relationship (at Total fair value
FVTOCI FVTPL relationship (at fair value
amortised cost fair value through
value)
profit or loss)
Financial assets
(a) Investments - non-current - 548.57 - - - 548.57 548.57
(b) Investments - current - - 885.31 - - 885.31 885.31
(c) Trade receivables 1,978.06 - - - - 1,978.06 1,978.06

(d) Cash and cash equivalents 2,145.30 - - - - 2,145.30 2,145.30
(e) Other bank balances 1,386.89 - - - - 1,386.89 1,386.89
(f) Loans and advances - non-current 138.46 - - - - 138.46 138.46
(g) Loans and advances - current 232.14 - - - - 232.14 232.14
(h) Other financial assets - non-current 680.90 - - 177.07 654.99 1,512.96 1,512.96
(i) Other financial assets - current 1,411.02 - - 135.54 - 1,546.56 1,546.56
Total 7,972.77 548.57 885.31 312.61 654.99 10,374.25 10,374.25
Derivatives
Derivatives
other than Other financial
in hedging Total carrying
in hedging liabilities (at Total fair value
relationship (at fair value
relationship (at fair amortised cost)
value)
value)
(a) Long-term borrowings (including Current maturities of long-term borrowings) - - 19,323.41 19,323.41 18,866.90
(b) Lease liabilities- non current - - 522.24 522.24 522.24
(d) Lease liabilities- current - - 83.30 83.30 83.30
(e) Trade payables - - 8,102.25 8,102.25 8,102.25
(f) Acceptances - - 2,741.69 2,741.69 2,741.69
(g) Other financial liabilities - non-current 21.37 219.08 614.29 854.74 854.74
(h) Other financial liabilities - current 15.16 23.87 1,390.42 1,429.45 1,429.45
Total 36.53 242.95 38,898.96 39,178.44 38,721.93
Standalone
Fair Value Hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into
Level 1 to Level 3, as described below.
Quoted prices in an active market (Level 1): This level of hierarchy includes financial instruments that are measured by reference to quoted prices
(unadjusted) in active markets for identical assets or liabilities. This category consists of quoted equity shares, quoted corporate debt instruments
and mutual fund investments.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other
than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e; as prices) or indirectly (i.e; derived from
prices). This level of hierarchy include Company’s over-the-counter (OTC) derivative contracts.
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using
inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model
based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.
There has been no transfers between level 1, level 2 and level 3 for the year ended March 31, 2021 and 2020.
Costs of certain unquoted equity instruments have been considered as an appropriate estimate of fair value because these investments are subject
to a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range. These investments
in equity instruments are not held for trading. Instead, they are held for medium or long term strategic purpose. Upon the application of Ind AS
109, the Company has chosen to designate these investments in equity instruments at FVTOCI as the directors believes this provides a more
meaningful presentation for medium or long term strategic investments, than reflecting changes in fair value in profit or loss.
Derivatives are fair valued using market observable rates and published prices together with forecast cash flow information where applicable.
(` in crores)
As at March 31, 2021
Level 1 Level 2 Level 3 Total
Financial assets measured at fair value
(a) Investments 2,024.49 - 521.42 2,545.91
(b) Derivative assets - 769.44 - 769.44
Total 2,024.49 769.44 521.42 3,315.35
Financial liabilities measured at fair value
(a) Derivative liabilities - 175.76 - 175.76
Total - 175.76 - 175.76
(` in crores)
(a) Investments 1,026.27 - 407.61 1,433.88
(b) Derivative assets - 967.60 - 967.60
Total 1,026.27 967.60 407.61 2,401.48
(a) Derivative liabilities - 279.48 - 279.48
Total - 279.48 - 279.48
The following table provides an analysis of fair value of financial instruments that are not measured at fair value on recurring basis, grouped into
Level 1 to Level 3 categories:
(` in crores)
Financial assets not measured at fair value
(a) Investments - - - -

Standalone
(` in crores)
Total - - - -
Financial liabilities not measured at fair value
(a) Long-term borrowings (including Current maturities of long-term 4,244.63 15,341.14 - 19,585.77
borrowings)
(b) Short-term borrowings - 2,542.50 - 2,542.50
(c) Option premium accrual - 383.77 - 383.77
Total 4,244.63 18,267.41 - 22,512.04
(` in crores)
(a) Investments - - - -
Total - - - -
(a) Long-term borrowings (including Current maturities of long- 5,527.22 13,339.68 - 18,866.90
term borrowings)
(c) Option premium accrual - 397.41 - 397.41
Total 5,527.22 19,858.45 - 25,385.67
Other short-term financial assets and liabilities are stated at amortised cost which is approximately equal to their fair value.
The fair value of borrowings which have a quoted market price in an active market is based on its market price and for other borrowings the fair
value is estimated by discounting expected future cash flows, using a discount rate equivalent to the risk-free rate of return, adjusted for the credit
spread considered by the lenders for instruments of similar maturity.
Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any
estimation technique. Therefore, substantially for all financial instruments, the fair value estimates presented above are not necessarily indicative
of all the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, the fair value of the financial
instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.
Offsetting
Certain financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right to set off recognised
amounts and the Company intends to either settle on a net basis, or to realise the asset and settle the liability, simultaneously.
Certain derivative financial assets and financial liabilities are subject to master netting arrangements, whereby in the case of insolvency, derivative
financial assets and financial liabilities will be settled on a net basis.
The following table discloses the amounts that have been offset, in arriving at the balance sheet presentation and the amounts that are available
for offset only under certain conditions as at March 31, 2021:
(` in crores)
Amounts subject to an enforceable
Gross amount
Net amount master netting arrangement
Gross amount recognised as set Net amount
presented in the Cash
recognised off in the balance Financial after offsetting
balance sheet collateral
sheet instruments
(received/pledged)
Financial assets
(a) Derivative financial instruments 769.44 - 769.44 (7.40) - 762.04
(b) Trade receivables 2,364.24 (276.73) 2,087.51 - - 2,087.51
(c) Loans and advances-current 186.82 (1.40) 185.42 - - 185.42
Total 3,320.50 (278.13) 3,042.37 (7.40) - 3,034.97
(b) Trade payables 8,390.53 (275.52) 8,115.01 - - 8,115.01
(c) Other financial liabilities 2.61 (2.61) - - - -

(` in crores)
Gross amount
Net amount master netting arrangement
Gross amount recognised as set Net amount
presented in the Cash
recognised off in the balance Financial after offsetting
balance sheet collateral
sheet instruments
(received/pledged)
Total 8,568.90 (278.13) 8,290.77 (7.40) - 8,283.37
The following table discloses the amounts that have been offset in arriving at the balance sheet presentation and the amounts that are available
(` in crores)
Gross amount master netting arrangement
Net amount
Gross amount recognised as set Cash Net amount after
presented in the
recognised off in the balance Financial collateral offsetting
balance sheet
sheet instruments (received/
pledged)
Financial assets
(c) Loans and advances-current 240.03 (7.89) 232.14 - - 232.14
Total 3,345.69 (167.89) 3,177.80 (21.52) - 3,156.28
(b) Trade payables 8,270.14 (167.89) 8,102.25 - - 8,102.25
Total 8,549.62 (167.89) 8,381.73 (21.52) - 8,360.21
(c) Financial risk management
In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity
prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments.
The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with
the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of
directors. The risk management framework aims to:
• Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company’s
business plan.
• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.
(i) Market risk
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change
in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements
cannot be normally predicted with reasonable accuracy.
(a) Foreign currency exchange rate risk:
The fluctuation in foreign currency exchange rates may have potential impact on the income statement, statement of
comprehensive income, balance sheet, statement of changes in equity and statement of cash flows where any transaction
references more than one currency or where assets/liabilities are denominated in a currency other than the functional
currency.
Considering the countries and economic environment in which the Company operates, its operations are subject to risks
arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in U.S. dollar, Euro
and GBP against the respective functional currencies of the Company.
The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge
foreign exchange and interest rate exposure. Any weakening of the functional currency may impact the Company’s cost of
exports and cost of borrowings and consequently may increase the cost of financing the Company’s capital expenditures.

Standalone
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.
The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate
exposure of each currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each
currency by 10% while keeping the other variables as constant.
The exposure as indicated below is mitigated by some of the derivative contracts entered into by the Company as disclosed
in (iv) derivative financial instruments and risk management below.
The following table sets forth information relating to foreign currency exposure (other than risk arising from derivatives
disclosed at clause (iv) below) as of March 31, 2021:
(` in crores)
U.S. dollar Euro GBP Chinese Yuan Others1 Total
Financial assets 248.18 16.94 104.53 0.06 29.04 398.75
Financial liabilities 6,769.43 212.30 185.88 13.14 12.03 7,192.78
1 Others mainly include currencies such as the Russian ruble, Japanese yen, Swiss franc, Indonesian Rupiahs, Thai
bahts and Korean won.
10% appreciation/depreciation of the respective foreign currencies with respect to functional currency of the Company
would result in decrease/increase in the Company’s net profit/(loss) before tax by approximately `39.88 crores and
`719.28 crores for financial assets and financial liabilities respectively for the year ended March 31, 2021.
The following table sets forth information relating to foreign currency exposure (other than risk arising from
derivatives disclosed at clause (iv) below) as of March 31, 2020:
(` in crores)
U.S. dollar Euro GBP ZAR Others2 Total
Financial assets 1,369.00 8.67 44.12 24.42 10.90 1,457.11
Financial liabilities 9,136.47 349.69 281.98 5.88 28.09 9,802.11
2 Others mainly include currencies such as the Russian ruble, Japanese yen, Swiss franc, Australian dollars, South
African rand and Korean won.
10% appreciation/depreciation of the respective foreign currencies with respect to functional currency of the Company
would result in decrease/increase in the Company’s net profit/(loss) before tax by approximately `145.71 crores and
`980.21 crores for financial assets and financial liabilities, respectively for the year ended March 31, 2020.
(Note: The impact is indicated on the profit/(loss) before tax basis.)
(b) Interest rate risk
Interest rate risk is the risk that changes in market interest rates will lead to changes in fair value of financial instruments or
changes in interest income, expense and cash flows of the Company.
The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company’s interest rate
exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments
to manage the liquidity and fund requirements for its day to day operations like short term loans.
As at March 31, 2021 and 2020, financial liabilities of `5,843.60 crores and `6,638.55 crores, respectively, were subject
to variable interest rates. Increase/decrease of 100 basis points in interest rates at the balance sheet date would result in
decrease/increase in profit/(loss) before tax of `58.44 crores and `66.39 crores for the year ended March 31, 2021 and
2020, respectively.
The model assumes that interest rate changes are instantaneous parallel shifts in the yield curve. Although some assets
and liabilities may have similar maturities or periods to re-pricing, these may not react correspondingly to changes in
market interest rates. Also, the interest rates on some types of assets and liabilities may fluctuate with changes in market
interest rates, while interest rates on other types of assets may change with a lag.
The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation
also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding
as at that date. The period end balances are not necessarily representative of the average debt outstanding during the
period.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
(Note: The impact is indicated on the profit/(loss) before tax basis).
(c) Equity Price risk
Equity Price Risk is related to the change in market reference price of the investments in equity securities.
The fair value of some of the Company’s investments measured at fair value through other comprehensive income exposes
the Company to equity price risks. These investments are subject to changes in the market price of securities. The fair value
of Company’s investment in quoted equity securities as of March 31, 2021 and 2020 was `446.22 crores and `140.96
crores, respectively. A 10% change in equity price as of March 31, 2021 and 2020 would result in a pre- tax impact of `44.62
crores and `14.10 crores, respectively.
(Note: The impact is indicated on equity before consequential tax impact, if any).
(ii) Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms
or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as
concentration risks.
Financial instruments that are subject to concentrations of credit risk, principally consist of investments classified as fair value
through profit and loss, trade receivables, loans and advances and derivative financial instruments. The Company strives to
promptly identify and reduce concerns about collection due to a deterioration in the financial conditions and others of its main
counterparties by regularly monitoring their situation based on their financial condition. None of the financial instruments of the
Company result in material concentrations of credit risks.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was
`12,119.25 crores and `9,966.54 crores as at March 31, 2021 and 2020, respectively, being the total of the carrying amount of
balances with banks, short term deposits with banks, trade receivables, finance receivables, margin money and other financial
assets excluding equity investments.
Financial assets that are neither past due nor impaired
None of the Company’s cash equivalents, including short term deposits with banks, are past due or impaired. Regarding trade
receivables and other receivables, and other loans or receivables that are neither impaired nor past due, there were no indications
as at March 31, 2021, and March 31, 2020, that defaults in payment obligations will occur.
Credit quality of financial assets and impairment loss
The ageing of trade receivables as of balance sheet date is given below. The age analysis has been considered from the due date.
(` in crores)
Trade receivables
Gross Allowance Net Gross Allowance Net
Period (in months)
(a) Not due 1,030.32 (8.74) 1,021.58 870.05 (3.93) 866.12
(b) Overdue up to 3 months 395.34 (25.89) 369.45 426.24 (6.11) 420.13
(c) Overdue 3-6 months 123.43 (5.11) 118.32 206.44 (26.49) 179.95
(d) Overdue more than 6 months 1,123.20 (545.04) 578.16 1,115.08 (603.22) 511.86
Total 2,672.29 (584.78) 2,087.51 2,617.81 (639.75) 1,978.06
Trade receivables overdue more than six months include `538.91 crores as at March 31, 2021 (`471.35 crores as at March 31,
2020) outstanding from Government organizations in India, which are considered recoverable.
Trade receivables consist of a large number of various types of customers, spread across geographical areas. Ongoing credit
evaluation is performed on the financial condition of these trade receivables and where appropriate allowance for losses are
provided. Further the Company, groups the trade receivables depending on type of customers and accordingly credit risk is
determined.

Standalone
(iii) Liquidity risk

Liquidity risk refers to the risk that the Company will encounter difficulty to meet its financial obligations. The objective of liquidity
risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital lines from various banks. Further, the Company has access
to funds from debt markets through commercial paper programs, non-convertible debentures, senior notes and other debt
instruments. The Company invests its surplus funds in bank fixed deposit and liquid and liquid plus schemes of mutual funds,
which carry no/low mark to market risks. The Company has also invested 15% of the amount of non-convertible debentures
(taken/issued by the Company) falling due for repayment in the next 12 months in bank deposits, to meet the regulatory norms
of liquidity requirements.
The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining
financial flexibility.
The table below provides undiscounted contractual maturities of financial liabilities, including estimated interest payments as at
March 31, 2021:
(` in crores)
Total
Carrying Due in 1st Due in 2nd Due in 3rd to Due after 5th
Financial liabilities contractual
amount Year Year 5th Year Year
cash flows
(a) Trade payables 8,115.01 8,115.01 - - - 8,115.01
(b) Acceptances 7,873.12 7,873.12 - - - 7,873.12
(c) Borrowings and interest thereon 22,117.08 6,998.65 4,031.24 13,447.83 2,341.92 26,819.64
(d) Other financial liabilities 1,491.64 1,093.49 142.11 296.38 100.19 1,632.17
(e) Lease liabilities 690.21 191.53 178.15 288.04 233.49 891.21
(f) Derivative liabilities 175.76 9.27 - 201.54 - 210.81
Total 40,462.82 24,281.07 4,351.50 14,233.79 2,675.60 45,541.96
The table below provides details regarding the contractual maturities of financial liabilities, including estimated interest payments
as at March 31, 2020:
(` in crores)
Total
Carrying Due in 1st Due in 2nd Due in 3rd to Due after 5th
Financial liabilities contractual
amount Year Year 5th Year Year
cash flows
(a) Trade payables 8,102.25 8,102.25 - - - 8,102.25
(b) Acceptances 2,741.69 2,741.69 - - - 2,741.69
(c) Borrowings and interest thereon 25,843.49 12,027.85 3,832.86 8,535.65 5,845.32 30,241.68
(d) Other financial liabilities 1,605.99 1,013.70 199.60 357.53 62.52 1,633.35
(e) Lease liabilities 605.54 191.98 159.85 240.31 129.76 721.90
(f) Derivative liabilities 279.48 39.03 - 21.07 219.38 279.48
Total 39,178.44 24,116.50 4,192.31 9,154.56 6,256.98 43,720.35
(iv) Derivative financial instruments and risk management
The Company has entered into a variety of foreign currency, interest rates and commodity forward contracts and options to
manage its exposure to fluctuations in foreign exchange rates, interest rates and commodity price risk. The counterparty is
generally a bank. These financial exposures are managed in accordance with the Company’s risk management policies and
procedures.
The Company also enters into interest rate swaps and cross currency interest rate swap agreements, mainly to manage exposure
on its fixed rate or variable rate debt. The Company uses interest rate derivatives or currency swaps to hedge exposure to
exchange rate fluctuations on principal and interest payments for borrowings denominated in foreign currencies.
Specific transactional risks include risks like liquidity and pricing risks, interest rate and exchange rate fluctuation risks, volatility
risks, counterparty risks, settlement risks and gearing risks.
Fair value of derivative financial instruments are determined using valuation techniques based on information derived from
observable market data.

The fair value of derivative financial instruments is as follows:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Foreign currency forward exchange contracts and options 746.85 941.36
(b) Commodity Derivatives 13.32 (12.79)
(c) Interest rate derivatives (166.49) (240.45)
Total 593.68 688.12
The gain/(loss) due to fluctuation in foreign currency exchange rates on derivative contracts, recognised in the income statement
was `(184.97) crores and `291.73 crores for the years ended March 31, 2021 and 2020, respectively.
(v) Commodity Price Risk
The Company is exposed to commodity price risk arising from the purchase of certain raw materials such as aluminium, copper,
platinum and palladium. This risk is mitigated through the use of derivative contracts and fixed-price contracts with suppliers. The
derivative contracts are not hedge accounted under Ind AS 109 but are instead measured at fair value through profit or loss.
The (gain)/loss on commodity derivative contracts, recognised in the statement of profit and loss was `(40.39) crores and `20.70
crores for the years ended March 31, 2021 and 2020, respectively.

Standalone
43. SEGMENT REPORTING

The Company primarily operates in the automotive segment. The automotive segment includes all activities relating to development, design,
manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories. The Company’s products mainly include
commercial vehicles and passenger vehicles.
Accordingly, the automotive segment is bifurcated into the following:
(i) Commercial vehicles
(ii) Passenger vehicles
(` in crores)
For the year ended/as at March 31, 2021
Commercial Passenger Corporate/
Total
Vehicle Vehicle* Unallocable
Revenues:
External revenue 29,899.07 16,856.43 275.97 47,031.47
Inter-segment/intra-segment revenue - - - -
Total revenues 29,899.07 16,856.43 275.97 47,031.47
Segment results before other income (excluding 18.38 (1,568.28) (89.23) (1,639.13)
incentives), finance costs, foreign exchange loss (net),
exceptional items and tax :
Reconciliation to Profit/(loss) before tax:
Other income (excluding incentives) 294.69
Finance costs (2,358.54)
Foreign exchange loss (net) (1.67)
Exceptional items gain/(loss) (net) (159.21) 1,699.63 (148.34) 1,392.08
Profit/(loss) before tax (2,312.57)
Depreciation and amortisation expense 1,574.04 1,950.89 156.68 3,681.61

Capital expenditure 1,533.88 679.23 (68.24) 2,144.87
Segment assets 22,478.62 16,669.73 39,148.35
Reconciliation to total assets:
Assets classified as held for sale 220.80
Investments in subsidiaries, associates and joint ventures 15,147.26
Other investments 2,545.91
Current and non-current tax assets (net) 715.31
Corporate/Unallocable assets 7,282.03
Total assets 65,059.66
Segment liabilities 16,296.11 5,725.94 22,022.05
Reconciliation to total liabilities:
Borrowings 21,748.72
Current tax liabilities (net) 37.84
Deferred tax liabilities (net) 266.50
Corporate/Unallocable liabilities 1,928.58
Total liabilities 46,003.69
* Includes Tata and Fiat brand vehicles

(` in crores)
Commercial Passenger Corporate/
Total
Vehicle Vehicle* Unallocable
Revenues:
External revenue 32,932.89 10,772.47 222.81 43,928.17
Inter-segment/intra-segment revenue - - - -
Total revenues 32,932.89 10,772.47 222.81 43,928.17
Segment results before other income (excluding (207.60) (2,727.57) (263.92) (3,199.09)
incentives), finance costs, foreign exchange loss (net),
exceptional items and tax :
Reconciliation to Profit before tax:
Other income (excluding incentives) 794.67
Finance costs (1,973.00)
Foreign exchange loss (net) (239.00)
Exceptional items gain/(loss) (net) 71.52 (2,222.85) (359.59) (2,510.92)
Profit before tax (7,127.34)
Depreciation and amortisation expense 1,510.70 1,699.49 165.10 3,375.29

Capital expenditure 2,311.82 2,573.73 426.34 5,311.89
Segment assets 21,845.57 16,774.98 38,620.55
Assets classified as held for sale 191.07
Investments in subsidiaries, associates and joint ventures 15,182.29
Current and non-current tax assets (net) 727.97
Corporate/Unallocable assets 6,434.11
Segment liabilities 11,237.44 5,204.60 16,442.04
Current tax liabilities (net) 31.49
Deferred tax liabilities (net) 198.59
Corporate/Unallocable liabilities 2,085.33
* Includes Tata and Fiat brand vehicles
(` in crores)
For the year ended/as at March 31, 2021 For the year ended/as at March 31, 2020
Information concerning principal geographic areas is as
Outside Outside
follows: Within India Total Within India Total
India India
Net sales to external customers by geographic area by 44,467.05 2,564.42 47,031.47 40,452.00 3,476.17 43,928.17
location of customers
Non- Current Assets [Property, plant and equipment, 29,387.37 42.19 29,429.56 29,659.04 43.74 29,702.78
right of use assets, intangible assets, other non-current
assets (non-financial) and Goodwill] by geographic area

Standalone
44. RELATED-PARTY TRANSACTIONS

The Company’s related parties principally includes subsidiaries, joint operations, associates and their subsidiaries, Tata Sons Pvt Limited,
subsidiaries and joint ventures of Tata Sons Pvt Limited. The Company routinely enters into transactions with these related parties in the
ordinary course of business.
All transactions with related parties are conducted at arm’s length price under normal terms of business and all amounts outstanding are
unsecured and will be settled in cash
The following table summarises related-party transactions and balances for the year ended / as at March 31, 2021:
(` in crores)
Tata Sons Pvt Ltd,
Joint Associates and its
Subsidiaries its subsidiaries and Total
Arrangements subsidiaries
joint arrangements
A) Transactions
Purchase of products 344.77 3,868.63 1,967.89 22.75 6,204.04
Sale of products 379.47 1,179.01 144.51 567.86 2,270.85
Services received 984.83 0.74 9.18 170.52 1,165.27
Services rendered 204.69 4.49 8.30 0.48 217.96
Bills discounted 216.91 - - 5,947.23 6,164.14
Purchase of property, plant and equipment 1.42 - 24.82 3.66 29.90
Sale of property, plant and equipment - - - 34.21 34.21
Sale of business 10.30 - - - 10.30
Finance given (including loans and equity) 93.07 - - 41.25 134.32
Finance given, taken back (including loans
40.00 - - - 40.00
and equity)
Finance taken (including loans and equity) 1,407.25 - 211.00 2,602.51 4,220.76
Finance taken, paid back (including loans
1,126.75 - 162.00 - 1,288.75
and equity)
Interest (income)/expense, dividend
9.75 18.37 5.69 59.80 93.61
(income)/paid, net
Borrowing towards lease Liability - 167.99 - - 167.99
Repayment towards lease liability - 14.14 - - 14.14
(B) Balances
Amounts receivable in respect of loans and
701.70 - - - 701.70
interest thereon
Amounts payable in respect of loans and
372.00 - 95.00 4.83 471.83
interest thereon
Amount payable in respect of Lease Liability - 265.85 - - 265.85
Trade and other receivables 272.16 - 39.22 79.71 391.09
Trade payables 427.45 156.94 60.96 67.01 712.36
Acceptances 42.13 - - 929.07 971.20
Assets / deposits given/taken as security 3.30 - - - 3.30

(` in crores)
Tata Sons Pvt Ltd,
joint arrangements
Provision for amount receivable (including
708.93 - - - 708.93
loans)
The following table summarises related-party transactions and balances for the year ended / as at March 31, 2020:
(` in crores)
Tata Sons Pvt Ltd,
joint arrangements
A) Transactions
Purchase of products 1,022.75 2,782.26 1,719.27 35.76 5,560.04
Sale of products 1,226.54 681.10 185.52 546.73 2,639.89
Services received 1,420.38 3.83 22.89 163.01 1,610.11
Services rendered 167.30 5.51 12.67 0.31 185.79
Bills discounted - - - 3,148.52 3,148.52
Purchase of property, plant and equipment 290.93 - 81.00 0.46 372.39
Sale of business 25.85 - - - 25.85
Finance given (including loans and equity) 503.24 10.07 - - 513.31
Finance given, taken back (including loans
482.50 - - -
and equity)
Finance taken (including loans and equity) 1,545.75 - 104.00 3,891.85 5,541.60
Finance taken, paid back (including loans
1,567.00 - 81.00 - 1,648.00
and equity)
Interest (income)/expense, dividend
(217.21) 4.09 (13.19) (4.81) (231.12)
(income)/paid, net
Borrowing towards lease Liability - 113.83 - - 113.83
Repayment towards lease liability - (1.83) - - (1.83)
(B) Balances
Amounts receivable in respect of loans and
647.50 15.82 - - 663.32
interest thereon
Amounts payable in respect of loans and
91.50 - 46.00 0.62 138.12
interest thereon
Amount payable in respect of Lease
- 112.00 - -
Liability
Trade and other receivables 427.71 0.03 24.73 32.49 484.96
Trade payables 688.42 272.66 272.48 39.85 1,273.41
Acceptances - - - 76.90 76.90
Assets / deposits given/taken as security 3.29 - - - 3.29
Provision for amount receivable (including
647.28 15.82 - - 663.10
loans)

Standalone
Details of significant transactions are given below:

Name of Related Party Nature of relationship
March 31, 2021 March 31, 2020
i) Bill discounted
Tata Capital Tata Sons Pvt Ltd, its subsidiaries and joint 5,947.23 3,148.52
arrangements
ii) Preferential allotment
Tata Sons Pvt Ltd Parent company 2,602.51 3,891.85
iii) Purchase of fixed assets
TML Business Services Ltd [formerly Subsidiaries - 286.40
known as Concorde Motors (India) Limited]
Compensation of key management personnel:

(` in crores)
March 31, 2021 March 31, 2020
Short-term benefits 26.65 25.31
Post-employment benefits* 2.00 4.41
Employees stock option plan 0.68 0.62
The compensation of CEO and Managing Director is `20.58 crores and `16.48 crores for the year ended March 31, 2021 and 2020,
respectively. This compensation for year ended March 31, 2021, includes `2.83 crores of performance bonus and long term incentive for the
year ended March 31, 2020, approved in the year ended March 31, 2021. The amount for year ended March 31, 2021 excludes Performance
and Long Term Incentives, which will be accrued post approval by the Board of Directors. The Company has reappointed CEO and Managing
Director from February 15, 2021 till June 30, 2021, which is subject to the approval of the Central Government and the Shareholders.
Remuneration for the period February 15, 2021 to March 31, 2021 of `1.89 crores (`11.82 crores for the year ended March 31, 2020)
included above is subject to the approval.
* For the year ended March 31, 2020, the Compensation of COO and Executive Director includes `2.41 crores for Gratuity, leave encashment
and Ex-gratia paid on superannuation.
Refer note 47 for information on transactions with post employment benefit plans.

45. DISCLOSURES REQUIRED BY SCHEDULE V OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)
REGULATIONS, 2015 AND SECTION 186 (4) OF THE COMPANIES ACT, 2013
(a) Amount of loans / advances in nature of loans outstanding from subsidiaries as at March 31, 2021, on a standalone basis.
(` in crores)
Outstanding as at Maximum amount
March 31, 2021/ outstanding during
March 31, 2020 the year
NAME OF THE COMPANY
(i) Subsidiaries:
Tata Motors European Technical Centre Plc., UK 42.82 42.82
[Tata Motors European Technical Centre has utilised this loan for investment in National 39.74 39.74
Automotive Innovation Centre set up jointly with University of Warwick and Jaguar Land
Rover Ltd and carried an interest rate of 12 months LIBOR+ 3% prevailing rate (3.8625% p.a
- 3.9224% p.a)]
Tata Hispano Motors Carrocera S.A. 556.86 556.86
(Tata Hispano Motors Carrocera S.A. has utilised this loan for meeting its capex requirement, 547.18 547.18
grant repayemnt and general corporate purposes, which is fully provided)
Tata Hispano Motors Carroceries Maghreb SA 58.39 58.39
(Tata Hispano Motors Carroceries Maghreb SA has utilised this loan for general corporate 58.39 58.39
purposes, which is partly provided)
Tata Precision Industries Pte Ltd - -
(Tata Precision Industries Pte Ltd has utilised this loan for general corporate purposes. The 0.53 0.53
interest rate was 12M LIBOR+ 3% at prevailing rate)
Trilix S.r.l 13.37 13.37
(Trilix SRL has utilised this loan for general corporate purposes, which is fully provided. The - -
interest rate is 12M EURIBOR + 3%)
JT Special Vehicle (P) Ltd * - -
(JT Special Vehicle (P) Ltd has utilised this loan for general corporate purposes and carried an 3.75 3.75
interest rate of 9.76% p.a)
JT Special Vehicle (P) Ltd * - -
(Inter corporate deposit utilised for working capital finance at the rate of interest of 10.25%. 12.07 12.07
Effective 1st July 2020, the interest rate was revised to 8.5%)
* JT Special Vehicle (P) Ltd ceased to be a Joint Venture and became a Wholly-owned Subsidiary w.e.f. August 11, 2020
(b) Details of Investments made are given in notes 7, 8, and 9 .

46. DETAILS OF SIGNIFICANT INVESTMENTS IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
Country of % direct holding
Name of the Company incorporation/ As at As at
Place of business March 31, 2021 March 31, 2020
Subsidiaries
TML Business Services Ltd India 100.00 100.00
Tata Motors Insurance Broking and Advisory Services Ltd India 100.00 100.00
Tata Motors European Technical Centre Plc UK 100.00 100.00
Tata Technologies Ltd India 74.43 72.48
TMF Holdings Ltd India 100.00 100.00
Tata Marcopolo Motors Ltd India 51.00 51.00
TML Holdings Pte Ltd Singapore 100.00 100.00
TML Distribution Company Ltd India 100.00 100.00
Tata Hispano Motors Carrocera S.A Spain 100.00 100.00
Tata Hispano Motors Carroceries Maghreb S.A Morocco 100.00 100.00
Trilix S.r.l Italy 100.00 100.00
Brabo Robotics and Automation Limited India 100.00 100.00
Tata Precision Industries Pte Ltd Singapore 78.39 78.39
JT Special Vehicle (P) Ltd India 100.00 50.00
Associates
Automobile Corporation of Goa Limited India 48.98 48.98
Nita Co. Ltd Bangladesh 40.00 40.00
Tata AutoComp Systems Ltd India 26.00 26.00
Tata Hitachi Construction Machinery Company Private Ltd India 39.74 39.74

Standalone
47. EMPLOYEE BENEFITS
(i) Defined Benefit Plan

Pension and post retirement medical plans
The following tables sets out the funded and unfunded status and the amounts recognised in the financial statements for the pension and the
post retirement medical plans in respect of Tata Motors and joint operations:
(` in crores)
Pension Benefits Post retirement medical Benefits
As at As at As at As at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Change in defined benefit obligations :
Defined benefit obligation, beginning of the year 1,175.83 1,038.21 156.43 144.23
Current service cost 75.79 68.20 7.67 7.16
Interest cost 76.65 76.95 10.49 10.45
Remeasurements (gains) / losses
Actuarial losses arising from changes in demographic (2.62) 3.49 - -
assumptions
Actuarial losses arising from changes in financial assumptions (0.11) 33.36 5.89 8.06
Actuarial (gains) / losses arising from changes in experience (11.38) 26.59 0.17 (4.17)
adjustments
Transfer in/(out) of liability (6.95) (0.61) - (0.05)
Benefits paid from plan assets (111.65) (64.84) - -
Benefits paid directly by employer (6.51) (5.52) (8.87) (9.25)
Defined benefit obligation, end of the year 1,189.05 1,175.83 171.78 156.43
Change in plan assets:

Fair value of plan assets, beginning of the year 1,012.60 914.61 - -
Interest income 69.19 72.11 - -
Remeasurements losses
Return on plan assets, (excluding 33.58 (20.18) - -
amount included in net Interest expense)
Employer’s contributions 103.09 111.43 - -
Transfer in/(out) of liability (6.54) (0.53) - -
Benefits paid (111.65) (64.84) - -
Fair value of plan assets, end of the year 1,100.28 1,012.60 - -
(` in crores)
Amount recognised in the balance sheet consists of
Present value of defined benefit obligation 1,189.05 1,175.83 171.78 156.43
Fair value of plan assets 1,100.28 1,012.60 - -
Asset ceiling (2.85) - - -
Net liability (85.92) (163.23) (171.78) (156.43)
Amounts in the balance sheet:
Non–current assets 41.96 1.17 - -
Non–current liabilities (127.88) (164.40) (171.78) (156.43)
Net liability (85.92) (163.23) (171.78) (156.43)

Total amount recognised in other comprehensive income consists of

(` in crores)
Remeasurements (gains) / losses 105.63 150.48 (34.96) (41.02)
105.63 150.48 (34.96) (41.02)
Information for funded plans with a defined benefit obligation in excess of plan assets:
(` in crores)
Pension Benefits
As at As at
March 31, 2021 March 31, 2020
Defined benefit obligation 14.17 1,028.77
Fair value of plan assets 13.59 990.15
Information for funded plans with a defined benefit obligation less than plan assets:
(` in crores)
Pension Benefits
As at As at
March 31, 2021 March 31, 2020
Defined benefit obligation 1,042.15 21.28
Fair value of plan assets 1,086.69 22.45
Information for unfunded plans:

(` in crores)
Defined benefit obligation 132.73 125.78 171.78 156.43
Net pension and post retirement medical cost consist of the following components:
(` in crores)
Year ended Year ended Year ended Year ended
Service cost 75.79 68.20 7.67 7.16
Net interest cost 7.46 4.84 10.49 10.45
Net periodic cost 83.25 73.04 18.16 17.61

Standalone
Other changes in plan assets and benefit obligation recognised in other comprehensive income.
(` in crores)
Year ended Year ended Year ended Year ended
Remeasurements
Return on plan assets, (excluding amount included in net (33.58) 20.18 - -
Interest expense)
Actuarial (gains)/losses arising from changes in demographic (2.62) 3.49 - -
assumptions
Actuarial (gains)/losses arising from changes in financial (0.11) 33.36 5.89 8.06
assumptions
Asset ceiling 2.85 - - -
adjustments on plan liabilities
Total recognised in other comprehensive income (44.85) 83.62 6.06 3.89
Total recognised in statement of comprehensive income 38.40 156.66 24.22 21.50
The assumptions used in accounting for the pension and post retirement medical plans are set out below:
(` in crores)
Discount rate 6.10%-6.90% 6.10%-6.90% 6.90% 6.90%
Rate of increase in compensation level of covered employees 5.75% - 10.00% 5.00% - 10.00% NA NA
Increase in health care cost NA NA 6.00% 6.00%
Plan Assets
The fair value of Company’s pension plan asset as of March 31, 2021 and 2020 by category are as follows:
(` in crores)
Pension Benefits
As at As at
March 31, 2021 March 31, 2020
Asset category:
Cash and cash equivalents 5.0% 6.5%
Debt instruments (quoted) 65.9% 67.5%
Debt instruments (unquoted) 0.4% 0.6%
Equity instruments (quoted) 5.9% 2.9%
Deposits with Insurance companies 22.9% 22.5%
100.0% 100.0%
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.
The weighted average duration of the defined benefit obligation as at March 31, 2021 is 13.1 years ( March 31, 2020 : 14.0 years).
The Company expects to contribute `87.73 crores to the funded pension plans during the year ended March 31, 2022.

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:
Assumption Change in assumption Impact on defined benefit obligation Impact on service cost and interest cost
Discount rate Increase by 1% `92.01 crores `20.65 crores

Decrease by 1% `127.06 crores `21.30 crores
Salary escalation rate Increase by 1% `96.96 crores `19.75 crores

Health care cost Increase by 1% `20.47 crores `4.31 crores

Provident Fund
The following tables set out the funded status of the defined benefit provident fund plan of Tata Motors Limited and the amounts recognized
in the Company’s financial statements.
(` in crores)
Particulars
March 31, 2021 March 31, 2020
Change in benefit obligations:
Defined benefit obligations at the beginning 3,865.99 3,509.30
Service cost 127.88 125.19
Employee contribution 298.48 288.36
Acquisitions (credit) / cost (118.74) (138.41)
Interest expense 327.79 296.54
Actuarial (gains) / losses arising from changes in experience adjustments on plan liabilities 9.20 3.89
Actuarial (gains) / losses arising from changes in financial assumptions 41.99 -
Benefits paid (231.71) (218.88)
Defined benefit obligations at the end 4,320.88 3,865.99
Fair value of plan assets at the beginning 3,845.14 3,520.82
Acquisition Adjustment (118.74) (138.41)
Interest income 324.44 302.42
Return on plan assets excluding amounts included in interest income (8.23) (32.82)
Contributions (employer and employee) 424.60 412.01
Benefits paid (231.71) (218.88)
Fair value of plan assets at the end 4,235.50 3,845.14
(` in crores)
As at As at
Amount recognised in the balance sheet consists of
March 31, 2021 March 31, 2020
Present value of defined benefit obligation 4,320.88 3,865.99
Fair value of plan assets 4,235.50 3,845.14
Effect of asset ceiling - (2.99)
Net liability 85.38 23.84
Non-Current liability 85.38 23.84

Standalone
(` in crores)
As at As at
Total amount recognised in other comprehensive income consists of:
March 31, 2021 March 31, 2020
Remeasurements (gains) / losses 80.22 17.81
80.22 17.81
(` in crores)
Net periodic cost for Provident Fund consists of following components:
March 31, 2021 March 31, 2020
Net interest cost / (income) 3.35 (5.88)
Net periodic cost 131.23 119.31
(` in crores)
March 31, 2021 March 31, 2020
Remeasurements
Return on plan assets, (excluding amount included in net Interest expense) 8.23 32.82
Adjustments for limits on net asset 2.99 (18.90)
Total recognised in other comprehensive income 62.41 17.81
Total recognised in statement of profit and loss and other comprehensive income 193.64 137.12
The assumptions used in determining the present value obligation of the Provident Fund is set out below:
(` in crores)
As at As at
Particulars
March 31, 2021 March 31, 2020
Discount rate 6.90% 6.90%
Expected rate of return on plan assets 8.20% to 8.40% 8.20% to 8.60%
Remaining term to maturity of portfolio 19.7 19.0
The breakup of the plan assets into various categories as at March 31, 2021 is as follows:
(` in crores)
As at As at
Particulars
March 31, 2021 March 31, 2020
Central and State government bonds 45.0% 44.2%
Public sector undertakings and Private sector bonds 33.8% 34.1%
Others 21.2% 21.7%
Total 100.0% 100.0%
The asset allocation for plan assets is determined based on investment criteria prescribed under the relevant regulations.
As at March 31, 2021, the defined benefit obligation would be affected by approximately `160.84 crores on account of a 0.50% decrease in
the expected rate of return on plan assets.
The Company expects to contribute `82.73 crores to the defined benefit provident fund plan in Fiscal 2022.
(ii) The Company’s contribution to defined contribution plan aggregated to `78.79 crores and `77.89 crores for the years ended March 31, 2021
and 2020, respectively.

48. ADDITIONAL INFORMATION

The financial statements include the Company’s proportionate share of assets, liabilities, income and expenditure in its two Joint Operations,
namely Tata Cummins Private Limited and Fiat India Automobile Private Limited. Below are supplementary details of Tata Motors Limited on
standalone basis excluding interest in the aforesaid two Joint Operations:
A. Balance Sheet
(` in crores)
As at As at
March 31, 2021 March 31, 2020
I. ASSETS
(1) NON-CURRENT ASSETS
(a) Property, plant and equipment 17,143.04 16,778.66
(b) Capital work-in-progress 1,324.21 1,626.53
(c) Right of use assets 979.48 724.08
(d) Other intangible assets 6,156.56 5,284.19
(e) Intangible assets under development 1,604.23 2,738.02
(f) Investments in subsidiaries, joint arrangements and associates 16,804.30 16,839.33
(g) Financial assets
(i) Investments 967.65 548.57
(ii) Loans and advances 125.74 137.93
(iii) Other financial assets 1,606.19 1,490.38
(h) Non-current tax assets (net) 651.91 654.55
(i) Other non-current assets 836.77 1,056.77
48,200.08 47,879.01
(2) CURRENT ASSETS
(a) Inventories 3,911.75 3,211.11
(b) Financial assets
(i) Investments 1,470.41 885.31
(ii) Trade receivables 1,778.19 1,851.09
(iii) Cash and cash equivalents 1,666.16 1,815.32
(iv) Bank balances other than (iii) above 1,951.53 1,338.70
(v) Loans and advances 181.26 216.49
(vi) Other financial assets 1,644.11 1,379.39
(c) Assets classified as held-for-sale 220.80 191.07
(d) Other current assets 1,051.53 1,241.50
13,875.74 12,129.98
TOTAL ASSETS 62,075.82 60,008.99
EQUITY
(a) Equity share capital 765.81 719.54
(b) Other equity 17,231.97 16,908.03
17,997.78 17,627.57
LIABILITIES
(1) NON-CURRENT LIABILITIES
(i) Borrowings 15,805.70 14,161.58
(iii) Other financial liabilities 646.08 779.56
(b) Provisions 1,316.38 1,698.92
(c) Other non-current liabilities 485.21 186.11
19,060.30 17,412.27
(2) CURRENT LIABILITIES
(i) Borrowings 2,486.36 6,014.40
(iv) Acceptances 7,873.12 2,741.69
(v) Other financial liabilities 3,955.20 5,731.13
(b) Provisions 1,166.36 1,429.44
(c) Current tax liabilities (net) 12.57 12.57
(d) Other current liabilities 2,194.61 1,304.34
25,017.74 24,969.15

Standalone
B. Statement of Profit and Loss

(` in crores)
Year ended March Year ended March
Particulars
31, 2021 31, 2020
Revenue from operations
Revenue 46,065.61 42,524.46
Other operating revenue 471.00 438.57
I. Total revenue from operations 46,536.61 42,963.03
II. Other Income 558.34 1,168.59
IV. Expenses
(a) Cost of materials consumed 28,493.12 24,758.46
(b) Purchases of products for sale 7,518.05 6,912.97
(c) Changes in inventories of finished goods, work-in-progress and products for sale (108.48) 760.04
(d) Employee benefits expense 3,987.72 4,156.75
(e) Finance costs 2,288.61 1,906.12
(f) Foreign exchange loss (net) 29.02 193.54
(h) Product development/Engineering expenses 907.44 829.58
(i) Other expenses 5,612.48 7,455.40
(j) Amount transferred to capital and other accounts (817.53) (1,158.83)
V. Profit/(loss) before exceptional items and tax (III-IV) (4,144.43) (4,805.01)
VI. Exceptional items
(a) Employee separation cost 215.97 0.33
(b) Write off/provision (reversal) for tangible/intangible assets (including under - (73.03)
development)
(c) Provision/(reversal) for loan given to/investment and cost of closure in subsidiary 123.36 385.62
companies/joint venture (net)
(d) Impairment losses/(reversal) in passenger vehicle business (1,182.41) 1,418.64
(e) Provision/(reversal) for Onerous Contracts and related supplier claims (549.00) 777.00
VII. Profit/(loss) before tax (V-VI) (2,752.35) (7,313.57)
VIII. Tax expense/(credit) (net)
(a) Current tax (including Minimum Alternate Tax) - 7.51
(b) Deferred tax (65.28) 132.90
Total tax expense (65.28) 140.41
X. Other comprehensive income/(loss):

(A) (i) Items that will not be reclassified to profit and loss:
(a) Remeasurement losses on defined benefit obligations (net) (32.18) (93.41)
(b) Equity instruments at fair value through other comprehensive income 365.84 (115.72)
(ii) Income tax credit/(expense) relating to items that will not be reclassified to profit and (6.53) 30.10
loss
(B) (i) Items that will be reclassified to profit and loss - gains/(losses) in cash flow hedges 168.12 (294.19)
(ii) Income tax credit/(expense) relating to items that will be reclassified to profit and loss (58.75) 102.80
Total other comprehensive income/(loss), net of taxes 436.50 (370.42)
XI. Total comprehensive income/(loss) for the year (IX+X) (2,250.57) (7,824.40)
XII. Earnings/(loss) per share (EPS)

(a) Ordinary shares:
(i) Basic ` (7.39) (21.54)
(ii) Diluted ` (7.39) (21.54)
(b) ‘A’ Ordinary shares:
(i) Basic ` (7.39) (21.54)
(ii) Diluted ` (7.39) (21.54)

C. STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2021
i) Equity Share Capital
(` in crores)
Equity Share
Particulars
Capital

ii) Other Equity

(` in crores)
Capital Retained earnings Other components of equity (OCI)
Money reserve
Share
received Capital Debenture (on
Securities based Equity Cost of Total other
Particulars against redemption redemption merger)/ General Undistributable Hedging
premium payments Distributable instruments hedging equity
Share reserve reserve (sale of Reserve (Ind AS 101) reserve
reserve through OCI reserve
Warrants business)
(net)
Balance as at April 1, 2020 22,194.89 13.14 867.50 2.28 1,038.84 (359.37) 1,726.83 627.03 (8,935.77) (56.00) (168.55) (42.79) 16,908.03
Loss for the year - - - - - - - - (2,687.07) - - - (2,687.07)
Other comprehensive income / - - - - - - - - (20.93) 348.06 67.38 41.99 436.50

(loss) for the year
Total comprehensive income/ - - - - - - - - (2,708.00) 348.06 67.38 41.99 (2,250.57)
(loss) for the year
Share-based payments - 9.04 - - - - - - - - - 9.04
Issue of shares pursuant to 3,423.74 - (867.50) - - - - - - - - 2,556.24
preferential allotment/conversion
of share warrants
Realised gain on investments - - - - - - - - (4.36) 4.36 - - -
held at fair value through Other
Sale of business to a subsidiary - - - - - 9.22 - - - - - - 9.22
company [refer note 49 (vi)]
Transfer from debenture - - - - (134.40) - - - 134.40 - - - -
redemption reserve
Balance as at March 31, 2021 25,618.63 22.18 - 2.28 904.44 (350.15) 1,726.83 627.03 (11,513.73) 296.42 (101.17) (0.80) 17,231.97

|
247
248
|
D. STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED MARCH 31, 2020
i) Equity Share Capital
(` in crores)
Equity Share
Particulars
Capital
ii) Other Equity
(` in crores)

Money Retained earnings Other components of equity (OCI)
Share Capital
received Capital Debenture Total
Securities based reserve Equity Cost of
Particulars against redemption redemption Undistributable Hedging other
premium payment (on Distributable instruments Hedging
Share reserve reserve (Ind AS 101) reserve equity
reserve merger) through OCI reserve
Warrants
Balance as at April 1, 2019 19,213.93 8.44 - 2.28 1,085.94 (359.37) 627.03 258.71 62.26 (26.40) 6.45 20,879.27
Profit for the year - - - - - - - (7,453.98) - - - (7,453.98)
Other comprehensive income /(loss) - - - - - - - (60.77) (118.26) (142.15) (49.24) (370.42)
for the year
Total comprehensive income/(loss) - - - - - - - (7,514.75) (118.26) (142.15) (49.24) (7,824.40)
for the year
Share-based payments - 4.70 - - - - - - - - - 4.70
Issue of Share warrants - 867.50 - - - - - - - - 867.50
Issue of shares pursuant to 2,980.96 - - - - - - - - - - 2,980.96
preferential allotment (net of issue
expenses of `3.08 crores) and
proceeds from issue of shares held in
abeyance
Transfer from debenture redemption - - - - (47.10) - - 47.10 - - - -
reserve
Balance as at March 31, 2020 22,194.89 13.14 867.50 2.28 1,038.84 (359.37) 627.03 (7,208.94) (56.00) (168.55) (42.79) 16,908.03
Standalone
49. OTHER NOTES:

i) Micro, Small and Medium Enterprises Development Act, 2006
The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis of information available with the Company. The amount of
principal and interest outstanding during the year is given below :
(` in crores)
As at As at
Particulars
March 31, 2021 March 31, 2020
(a) Amounts outstanding but not due (including capital creditors) 185.64 87.64
as at March 31,
(b) Amounts due but unpaid as at March 31, - Principal 4.07 13.92
(c) Amounts paid after appointed date during the year - Principal 237.39 87.56
(d) Amount of interest accrued and unpaid as at March 31, - Interest 4.64 2.76
(e) Amount of estimated interest due and payable for the period from April 1, - Interest 0.26 0.14
2021 to actual date of payment or May 18, 2021 (whichever is earlier)
ii) The Board of Directors has, at its meeting held on July 31, 2020, approved (subject to the requisite regulatory and other approvals) a Scheme
of Arrangement between Tata Motors Limited and TML Business Analytics Services Limited (Transferee Company) for:
a) Transfer of the PV Undertaking of the Company as a going concern, on a slump sale basis as defined under Section 2(42C) of the
Income-tax Act, 1961, to the Transferee Company for a lump sum consideration of `9,417.00 crores through issuance of equity shares;
and
b) Reduction of its share capital without extinguishing or reducing its liability on any of its shares by writing down a portion of its securities
premium account to the extent of `11,173.59 crores, with a corresponding adjustment to the accumulated losses of the Company.
The Scheme of Arrangement has been filed with National Company Law Tribunal for approval.
iii) The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material
foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/accounting
standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in books of account.
(iv) The Company’s certain assets related to defence business are classified as “Held for Sale” as they meet the criteria laid out under Ind AS 105.
The transaction has been completed in April 2021.
(v) During the year ended March 31, 2021, the Company has transferred its Global Delivery Centre / Process Shared Service business (‘GDC
Business’) unit to subsidiary company TML Business Services Limited (TMLBSL) on a slump sale basis for a lump sum consideration of
`10.30 crores. The difference between the consideration paid and net assets of GDC business of `9.22 crores, has been credited to Capital
reserve (on merger/sale of business).
(vi) During the year ended March 31, 2021, the Company and Marcopolo S.A. have entered into a share purchase agreement where the Company
will purchase the balance 49% shareholding in Tata Marcopolo Motors Ltd (TMML) for a cash consideration of `99.96 crores, subject to
certain closing conditions to be complied by both Parties. On completion of the transaction, TMML will become a wholly owned subsidiary of
the Company.
(vii) The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards
Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on
November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company
will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the
period in which, the Code becomes effective and the related rules to determine the financial impact are published.

For B S R & Co. LLP

Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021

Consolidated
INDEPENDENT AUDITORS’ REPORT
To the Members of Tata Motors Limited under those SAs are further described in the Auditor’s Responsibilities for
Report on the Audit of Consolidated Financial Statements the Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group, its associates, joint ventures and joint
Opinion operations in accordance with the ethical requirements that are relevant
We have audited the consolidated financial statements of Tata Motors to our audit of the consolidated financial statements in terms of the Code
Limited (hereinafter referred to as the ‘Holding Company”) and its of Ethics issued by the Institute of Chartered Accountants of India, and
subsidiaries (Holding Company and its subsidiaries together referred to the relevant provisions of the Act , and we have fulfilled our other ethical
as “the Group”), its associates and its joint ventures and joint operations, responsibilities in accordance with these requirements. We believe that
which comprise the consolidated balance sheet as at 31 March 2021, the audit evidence obtained by us along with the consideration of audit
and the consolidated statement of profit and loss (including other reports of the other auditors referred to in the “Other Matters” paragraph
comprehensive income), consolidated statement of changes in equity and below, is sufficient and appropriate to provide a basis for our opinion on the
consolidated statement of cash flows for the year then ended, and notes to consolidated financial statements.
the consolidated financial statements, including a summary of significant
accounting policies and other explanatory information (hereinafter Emphasis of matter
referred to as “the consolidated financial statements”). We draw your attention to Note 2(f) to these consolidated financial
statements, which describes the economic and social consequences/
In our opinion and to the best of our information and according to the disruption the Group is facing as a result of COVID-19 which is impacting
explanations given to us, and based on the consideration of reports of other supply chains / consumer demand / financial markets /commodity prices /
auditors on separate financial statements of such subsidiaries, associates, personnel available for work.
joint ventures and joint operations as were audited by the other auditors,
the aforesaid consolidated financial statements give the information Key Audit Matters
required by the Companies Act, 2013 (“Act”) in the manner so required Key audit matters are those matters that, in our professional judgment
and give a true and fair view in conformity with the accounting principles and based on the consideration of reports of other auditors on separate
generally accepted in India, of the consolidated state of affairs of the Group, financial statements of components audited by them, were of most
its associates, joint ventures and joint operations as at 31 March 2021, of its significance in our audit of the consolidated financial statements of the
consolidated loss and other comprehensive income, consolidated changes current period. These matters were addressed in the context of our audit
in equity and consolidated cash flows for the year then ended. of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
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
Description of Key Audit Matter
Key audit matter How the matter was addressed in our audit
1) JLR Group Going concern, as reported by the component auditor of Jaguar Land Rover Automotive Plc (hereinafter referred to as JLR Group).
Disclosure Quality The auditor of the component (JLR Group) considered whether these risks could plausibly affect the liquidity or covenant
The financial statements explain how the Board of JLR compliance in the going concern period by assessing the directors’ sensitivities over the level of available financial resources
Group has formed a judgement that it is appropriate to and covenant thresholds indicated by the JLR Group’s financial forecasts taking account of severe, but plausible, adverse
adopt the going concern basis of preparation for the JLR effects that could arise from these risks individually and collectively.
Group. Their procedures also included:
That judgement is based on an evaluation of the inherent • Assessment of management’s process: Evaluated management’s process to produce forecasts, including the
risks to the JLR Group’s business model, in particular, assessment of internal and external factors used to determine the severe but plausible downward scenarios adopted.
risks associated with the global coronavirus pandemic, the • Funding assessment: Evaluated JLR Group’s financing facilities to ensure that the available terms and covenants
impact of Brexit and how those risks might affect the JLR associated with these facilities, were completely and accurately reflected in the cash flow forecasts;
Group’s financial resources or ability to continue operations • Key dependency assessment: Evaluated whether the key assumptions underpinning the forecast cash flows, which the
over a period to 30 September 2022. directors have used to support the going concern basis of preparation and to assess whether JLR Group can meet its
The risks most likely to adversely affect the JLR Group’s financial commitments as they fall due, were realistic, achievable and consistent with the external environment and other
available financial resources over this period were: matters identified in the audit.
• The impact of coronavirus lockdowns and related The key assumptions include sales volumes together with fixed and variable costs.
potential economic damage on customer demand in They inspected the timing of cash outflows related to the Reimagine restructuring and ensured that they were
JLR Group’s key markets. completely and accurately incorporated into the cash flow forecasts.
• The impact on JLR Group’s supply chain and • Historical comparisons: Evaluated the historical cash flow forecasting accuracy of JLR Group by comparing historical
consequent production capability from semiconductor cash flows to actual results reported, as well as assessing the accuracy of key assumptions previously applied;
shortages, coronavirus related supply shortages and • Benchmarking assumptions: Assessed appropriateness of JLR Group’s key assumptions used in the cash flow forecasts,
supplier continuity risks. by benchmarking them to externally derived data, with particular focus on sales volumes;
The risk for our audit is whether or not those risks are such • Sensitivity analysis: Considered sensitivities over the key assumptions underlying the JLR Group’s cash flow forecasts
that they amount to a material uncertainty that may cast and their impact on the level of available financial resources;
significant doubt about the ability to continue as a going • Sector experience – The component audit team used their industry specialists to challenge the key assumptions made
concern. Had they been such, then that fact would have by the directors in their forecast cash flows;
been required to be disclosed. • Assessing transparency – The component audit team assessed the completeness and accuracy of the matters disclosed
(Refer note 2(e) of the consolidated financial statements) in the going concern disclosure by considering whether it is consistent with their knowledge of the business.

2) Assessment of indicators of impairment reversal of plant and equipment and intangible assets of the passenger vehicles cash generating unit.
The Holding Company periodically assesses if there are any In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain
triggers for reversal of previously recognized impairment sufficient appropriate audit evidence
loss in respect of its passenger vehicle cash generating unit Test of Controls:
(CGU). In making this determination, the Holding Company • We evaluated the design and tested the operating effectiveness of the key control over the assessment of indicators of
considers both internal and external sources of information impairment reversal.
to determine whether there is an indicator of impairment Test of Details:
reversal and, accordingly, whether the recoverable amount • We assessed internal and external sources of information used by the Holding Company to determine that there are
of the CGU needs to be estimated. indicators of impairment reversal.
An impairment loss accounted in earlier years is reversed • In performing the above assessment we have examined:
if the recoverable amount is higher than the carrying — The growth in total industry volume in current year and growth estimates as per industry forecasts.
value. The recoverable amount is determined based on — The increase in share price of the Holding Company during the current year and the market capitalisation
the higher of value in use (VIU) and fair value less costs attributable to the passenger vehicles CGU.
of to sell (FVLCS). As at 31 March 2021, the Holding — The improvement in sales multiple as per analyst report as compared to previous year.
Company determined the recoverable amount of this CGU — The growth in the sales volume of the Holding Company in current year.
to be ` 14,169 crores, being the FVLCS, and reversed the — The increase in market share of the Holding Company in current year as compared to previous year.
impairment loss. After reversal of the impairment loss, the — The improvement in the contribution margin earned by the Holding Company.
carrying value of net assets for this CGU was ` 7,750 crores • We also assessed changes in the estimates used to determine the CGU’s recoverable amount.
as at 31 March 2021. • We involved valuation professionals with specialized skills and knowledge who assisted in evaluating the principles
This assessment of indicators of impairment reversal is used in selection of comparable companies and assessing the CGU’s enterprise value (i.e. FVLCS) based on comparable
considered to be a key audit matter due to the significant companies’ enterprise value to sales multiple.
judgment required to assess the internal and external • We performed a sensitivity analysis over the enterprise value to sales multiple to assess the impact on the recoverable
sources of information. amount.
(Refer notes 2(s) & 8(a) of the consolidated financial

statements)
3) Impairment of property plant and equipment, intangible, and right-of-use non-current assets, as reported by the component auditor of JLR Group
Forecast based assessment The audit procedures applied by the auditor of the component (JLR Group) included:
There is a risk that the carrying value of property, plant • Historical accuracy: Evaluated historical forecasting accuracy of discounted cash flow forecasts, including key
and equipment (PPE), intangible assets, and right-of- assumptions, by comparing them to the actual results;
use assets (ROUAs) may be higher than the recoverable • Historical comparisons: Assessed appropriateness of JLR Group’s key assumptions used in the discounted cash flow
amount. Where a review for impairment, or reversal of forecasts by comparing those, where appropriate, to historical trends in terminal value variable profit and terminal value
impairment, is conducted, the recoverable amount is capital expenditure;
determined based on the higher of ‘value in use’ or ‘fair • Benchmarking assumptions: Assessed appropriateness of the JLR Group’s estimated value in use amount by comparing
value less costs of disposal’. the implied trading multiples to market multiples of comparative companies with the assistance of their valuation
specialists. Assessed appropriateness of JLR Group’s assumptions used in the cash flow projections by comparing the
The JLR Group holds a significant amount of property,
key assumption of sales volumes to externally derived data;
plant and equipment and intangible assets on its balance
• Compared JLR Group’s discount rate and long-term growth rate to external benchmark data and comparative companies
sheet.
and reperformed the discount rate calculation using the Capital Asset Pricing Model with the assistance of their valuation
Property, plant and equipment, intangible assets and specialists;
right of use assets are at risk of being impaired as cash • Sensitivity analysis: Performed a sensitivity analysis on key assumptions, generating an independent range for
flow forecasts may contain optimistic expectations of comparison, taking account of the JLR Group’s Reimagine strategy;
terminal value variable profit and terminal value capital • Comparing valuations: Assessed the JLR Group’s reconciliation between the estimated market capitalization of the
expenditure. The JLR Group has also announced its JLR Group, by reference to the overall market capitalization of the Holding Company and compared to the estimated
‘Reimagine’ Strategy which has led to the termination recoverable amount of the cash generating unit;
of the mid Modular Longitudinal Architecture (‘MLA’) • Impairment reversal: Assessed whether the JLR Group’s estimated value in use was indicative of an impairment reversal.
development programme. • Assessing transparency: Assessed the adequacy of JLR Group’s disclosures in the financial statements and ensured that
the disclosure reflects the reasonably possible changes in key assumptions that erode the headroom in the recoverable
The effects of these matters is that as part of risk
amount compared to the cash generating unit carrying value to nil.
assessment, the component auditors determined that
the calculation of the value in use of property, plant and
equipment, intangible assets, and right-of-use assets
has a high degree of estimation uncertainty, with a range
of reasonable outcomes greater than the materiality for
the consolidated financial statements as a whole, and
possibly many times that amount.
(Refer note 2(s) & 7 of the consolidated financial

statements)

Consolidated
4) Capitalisation of product engineering costs, as reported by the component auditor of JLR Group
Subjective judgement
The audit procedures applied by the auditor of the component (JLR Group) included:
The JLR Group capitalises a high proportion of product • Control operation: Tested controls over the JLR Group’s retrospective review of historically forecast material production
development spend and there is a key judgement in costs at the point capitalisation commenced against actual costs observed in manufacture. The historical accuracy is a
determining whether the nature of product engineering key input into the directors’ assessment of whether the future economic benefit of development projects is probable and
costs satisfy the criteria for capitalization to “Intangible the control over the JLR Group’s judgements as to whether costs are considered directly attributable;
Assets under development” and when this capitalization • Component auditor’s experience – Critically assessed the directors’ judgements regarding identified directly attributable
should commence. The judgement of when capitalization costs against both the accounting standards and their own experience or practical application of these standards in other
should commence consists of a number of judgements companies;
regarding the satisfaction of Ind AS 38 capitalisation criteria, • Benchmarking assumptions: For a sample of the volume assumptions contained in the capitalized projects, compared
and a key judgement is assessing whether development the JLR Group’s assessment of economic viability to externally derived data;
projects will generate probable future economic benefit. • Sensitivity analysis: For a sample of the JLR Group’s assessments of economic viability of development projects,
The consolidated financial statements disclose that had the assessed the JLR Group’s application of appropriate downside sensitivities in establishing whether future economic
value of central overheads not been classified as directly benefit is considered probable;
attributable it would have reduced the amount capitalized • Historical comparison: Performed a retrospective review of revenue and material cost per vehicle on completed
by ` 806.12 crores (31 March 2020 – ` 1,094.35 crores). development projects to assess previous economic viability assumptions against the actual outturn.
Considered whether the Reimagine asset impairments were evidence of fraud or error at the time of initial capitalisation.
(Refer note 2 (q) & 6 of the consolidated financial • Assessing transparency: Assessed the adequacy of the JLR Group’s disclosures in respect of key judgements made
statements) relating to the nature of the costs capitalised and the point at which capitalisation commences.
5) Valuation of defined benefit plan obligations, as reported by the component auditor of JLR Group
Subjective valuation The audit procedures applied by the auditor of the component (JLR Group) included:
Small changes in the key assumptions and estimates, • Control operation: Tested the controls over the assumptions applied in the valuation and inspected the JLR Group’s
being the discount rate, inflation rate and mortality / annual validation of the assumptions used by its actuarial expert. Tested the controls operating over selection and
life expectancy, used to value the JLR Group’s pension monitoring of its actuarial expert for competence and objectivity;
obligation (before deducting scheme assets) would have • Benchmarking assumptions: Challenged, with the support of their own actuarial specialists, the key assumptions
a significant effect on the JLR Group’s net defined benefit applied to the valuation of the liabilities, being the discount rate, inflation rate and mortality/ life expectancy against
plan asset/(obligation) . The risk is that these assumptions externally derived data;
are inappropriate resulting in an inappropriate valuation of • Assessing transparency: Considered the adequacy of the disclosures in respect of the sensitivity of the JLR Group’s net
plan obligations. defined benefit plan asset/(obligation) to these assumptions.
The effect of these matters is that, as part of risk assessment,

the component auditors determined that valuation of JLR
Group’s pension obligation has a high degree of estimation
uncertainty, with a potential range of reasonable outcomes
greater than the materiality for the consolidated financial
statements as a whole, and possibly many times that
amount. The consolidated financial statements disclose the
sensitivity estimated by the JLR group.
(Refer note 38 of the consolidated financial statements)

6) Impairment of loans to customers of the Group’s vehicle financing business under its subsidiary TMF Holdings Limited (TMF Group)
Subjective estimate Our key audit procedures included:
Under Ind AS 109, Financial Instruments, allowance for Design / controls

loan losses are determined using expected credit loss
We performed end to end process walkthroughs to identify the key systems, applications and controls used in ECL processes.
(ECL) estimation model. The estimation of ECL on financial
We tested the relevant manual (including spreadsheet controls), general IT and application controls over key systems used
instruments involves significant judgement and estimates.
in ECL process.
The key areas where we identified greater levels of
management judgement and therefore increased levels of Key aspects of our controls testing involved the following:
audit focus in the TMF Group’s estimation of ECLs are:
• Testing the design and operating effectiveness of the key controls over the completeness and accuracy of the key inputs,
- Data inputs - The application of ECL model requires data and assumptions into the Ind AS 109 impairment models.
several data inputs. This increases the risk of
completeness and accuracy of the data that has been • Testing the ‘Governance Framework’ controls over validation, implementation and model monitoring in line with Reserve
used to create assumptions in the model. Bank of India guidance.
- Model estimations – Inherently judgmental models • Testing the design and operating effectiveness of the key controls over the application of the staging criteria.
are used to estimate ECL which involves determining • Testing key controls relating to selection and implementation of material macro-economic variables and the controls
Probabilities of Default (“PD”), Loss Given Default over the scenario selection and application of probability weights.
(“LGD”), and Exposures at Default (“EAD”). The PD and
the LGD are the key drivers of estimation complexity • Testing management’s controls over authorisation and calculation of post model adjustments and management overlays.
in ECL and as a result are considered the most
• Testing management’s controls on compliance with Ind AS 109 disclosures related to ECL.
significant judgmental aspect of the TMF Group’s
modelling approach. • Testing key controls operating over the information technology system in relation to loan impairment including system
access and system change management, program development and computer operations.
- Economic scenarios – Ind AS 109 requires the TMF
Group to measure ECLs on an unbiased forward- Involvement of specialists - we involved financial risk modelling specialists for the following:
looking basis reflecting a range of future economic
• Evaluating the appropriateness of the TMF Group’s Ind AS 109 impairment methodologies and reasonableness of
conditions. Significant management judgement is
assumptions used (including management overlays).
applied in determining the economic scenarios used
and the probability weights applied to them especially • For models which were changed or updated during the year, evaluating whether the changes were appropriate by
when considering the current uncertain economic assessing the updated model methodology.
environment arising from COVID-19.
• For corporate loans, assessing appropriateness of management’s credit grading model.
- Qualitative adjustments – Adjustments to the model-
driven ECL results are recorded by management • The reasonableness of the TMF Group’s considerations of the impact of the current economic environment due to
to address known impairment model limitations or COVID-19 on ECL determination.
emerging trends as well as risks not captured by Test of details
models. They represent approximately 20.46 % of ECL
Key aspects of our testing included:
balances as at 31 March 2021. These adjustments are
inherently uncertain and significant management • Sample testing over key inputs, data and assumptions impacting ECL calculations to assess the completeness, accuracy
judgement is involved in estimating these amounts and relevance of data and reasonableness of economic forecasts, weights, and model assumptions applied.
especially in relation to economic uncertainty as a
• Model calculations testing through re-performance, where possible.
result of COVID-19.
• Test of details of post model adjustments, considering the size and complexity of management overlays with a focus on
The underlying forecasts and assumptions used in the
COVID-19 related overlays, in order to assess the reasonableness of the adjustments by challenging key assumptions,
estimates of impairment loss allowance are subject to
inspecting the calculation methodology and tracing a sample of the data used back to source data.
uncertainties which are often outside the control of the
TMF Group. The extent to which the COVID-19 pandemic • Assessing disclosures - We assessed whether the disclosures appropriately disclose and address the uncertainty which
will impact the TMF Group’s current estimate of impairment exists when determining ECL. In addition, we assessed whether the disclosure of the key judgements and assumptions
loss allowances is dependent on future developments, made was sufficiently clear.
which are highly uncertain at this point. Given the size of
loan portfolio relative to the balance sheet and the impact
of impairment allowance on the financial statements, we
have considered this as a key audit matter.
Disclosures
The disclosures regarding the TMF Group’s application of

Ind AS 109 are key to explaining the key judgements and
material inputs to the Ind AS 109 ECL results.
(Refer note 2(w)(iv) and note 41 of the consolidated

financial statements)

Consolidated
Other Information assurance, but is not a guarantee that an audit conducted in accordance
The Holding Company’s management and Board of Directors are with SAs will always detect a material misstatement when it exists.
responsible for the other information. The other information comprises Misstatements can arise from fraud or error and are considered material
the information included in the Holding Company’s annual report, but if, individually or in the aggregate, they could reasonably be expected
does not include the financial statements and our auditors’ report to influence the economic decisions of users taken on the basis of these
thereon. consolidated financial statements.
Our opinion on the consolidated financial statements does not cover As part of an audit in accordance with SAs, we exercise professional
the other information and we do not express any form of assurance judgment and maintain professional skepticism throughout the audit.
conclusion thereon. We also:
In connection with our audit of the consolidated financial statements, • Identify and assess the risks of material misstatement of the
our responsibility is to read the other information and, in doing so, consolidated financial statements, whether due to fraud or error,
consider whether the other information is materially inconsistent with design and perform audit procedures responsive to those risks,
the consolidated financial statements or our knowledge obtained in the and obtain audit evidence that is sufficient and appropriate to
audit or otherwise appears to be materially misstated. If, based on the provide a basis for our opinion. The risk of not detecting a material
work we have performed and based on the work done/ audit report of misstatement resulting from fraud is higher than for one resulting
other auditors, we conclude that there is a material misstatement of this from error, as fraud may involve collusion, forgery, intentional
other information, we are required to report that fact. We have nothing omissions, misrepresentations, or the override of internal control.
to report in this regard.
• Obtain an understanding of internal control relevant to the audit
Management’s and Board of Directors’ Responsibilities for the in order to design audit procedures that are appropriate in the
Consolidated Financial Statements circumstances. Under section 143(3)(i) of the Act, we are also
The Holding Company’s Management and Board of Directors are responsible for expressing our opinion on the internal financial
responsible for the preparation and presentation of these consolidated controls with reference to the consolidated financial statements
financial statements in term of the requirements of the Act that give and the operating effectiveness of such controls based on our
a true and fair view of the consolidated state of affairs, consolidated audit.
profit/ loss and other comprehensive income, consolidated statement of
• Evaluate the appropriateness of accounting policies used and the
changes in equity and consolidated cash flows of the Group including its
reasonableness of accounting estimates and related disclosures
associates and joint ventures and joint operations in accordance with the
made by the Management and Board of Directors.
accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under section 133 of the Act. • Conclude on the appropriateness of Management and Board
The respective Management and Board of Directors of the companies of Directors use of the going concern basis of accounting in
included in the Group and of its associates and joint ventures and joint preparation of consolidated financial statements and, based on
operations are responsible for maintenance of adequate accounting the audit evidence obtained, whether a material uncertainty exists
records in accordance with the provisions of the Act for safeguarding the related to events or conditions that may cast significant doubt
assets of each company and for preventing and detecting frauds and other on the appropriateness of this assumption. If we conclude that a
irregularities; the selection and application of appropriate accounting material uncertainty exists, we are required to draw attention in
policies; making judgments and estimates that are reasonable and our auditor’s report to the related disclosures in the consolidated
prudent; and the design, implementation and maintenance of adequate financial statements or, if such disclosures are inadequate, to
internal financial controls, that were operating effectively for ensuring modify our opinion. Our conclusions are based on the audit
accuracy and completeness of the accounting records, relevant to the evidence obtained up to the date of our auditor’s report. However,
preparation and presentation of the consolidated financial statements future events or conditions may cause the Group and its associates
that give a true and fair view and are free from material misstatement, and joint ventures and joint operations to cease to continue as a
whether due to fraud or error, which have been used for the purpose of going concern.
preparation of the consolidated financial statements by the Management
• Evaluate the overall presentation, structure and content of the
and Directors of the Holding Company, as aforesaid.
consolidated financial statements, including the disclosures, and
In preparing the consolidated financial statements, the respective whether the consolidated financial statements represent the
Management and Board of Directors of the companies included in the underlying transactions and events in a manner that achieves fair
Group and of its associates, joint ventures and joint operations are presentation.
responsible for assessing the ability of each company to continue as
• Obtain sufficient appropriate audit evidence regarding the
a going concern, disclosing, as applicable, matters related to going
financial information of such entities or business activities
concern and using the going concern basis of accounting unless the
within the Group and its associates and joint ventures and joint
respective Board of Directors either intends to liquidate the Company or
operations to express an opinion on the consolidated financial
to cease operations, or has no realistic alternative but to do so.
statements. We are responsible for the direction, supervision and
The respective Board of Directors of the companies included in the Group performance of the audit of financial information of such entities
and of its associates, joint ventures and joint operations is responsible included in the consolidated financial statements of which we
for overseeing the financial reporting process of each company. are the independent auditors. For the other entities included in
the consolidated financial statements, which have been audited
Auditor’s Responsibilities for the Audit of the Consolidated
by other auditors, such other auditors remain responsible for the
Financial Statements
direction, supervision and performance of the audits carried out
Our objectives are to obtain reasonable assurance about whether the
by them. We remain solely responsible for our audit opinion. Our
consolidated financial statements as a whole are free from material
responsibilities in this regard are further described in the section
misstatement, whether due to fraud or error, and to issue an auditor’s
titled ‘Other Matters’ in this audit report.
report that includes our opinion. Reasonable assurance is a high level of

We believe that the audit evidence obtained by us along with the opinion on the consolidated financial statements, in so far as it
consideration of audit reports of the other auditors referred to in the relates to the amounts and disclosures included in respect of these
Other Matters paragraph below, is sufficient and appropriate to provide subsidiaries, step down subsidiaries, joint ventures and associates,
a basis for our audit opinion on the consolidated financial statements. and our report in terms of sub-section (3) of Section 143 of the
Act, in so far as it relates to the aforesaid subsidiaries, step down
We communicate with those charged with governance of the Holding
subsidiaries, joint ventures and associates is based solely on the
Company and such other entities included in the consolidated financial
audit reports of the other auditors.
statements of which we are the independent auditors regarding, among
other matters, the planned scope and timing of the audit and significant Of the two subsidiaries and 77 step down subsidiaries listed above,
audit findings, including any significant deficiencies in internal control the financial statements / financial information of one subsidiary and
that we identify during our audit. seven step down subsidiaries which are located outside India have
been prepared under the generally accepted accounting principles
We also provide those charged with governance with a statement
(‘GAAPs’) applicable in their respective countries and which have
that we have complied with relevant ethical requirements regarding
been audited by other auditors under generally accepted auditing
independence, and to communicate with them all relationships and other
standards applicable in their respective countries. The Holding
matters that may reasonably be thought to bear on our independence,
Company’s Management has converted the financial statements of
and where applicable, related safeguards.
such subsidiary and step-down subsidiaries located outside India
From the matters communicated with those charged with governance, from accounting principles generally accepted in their respective
we determine those matters that were of most significance in the audit countries to Indian Accounting Standards (Ind AS) prescribed
of the consolidated financial statements of the current period and under Section 133 of the Companies Act, 2013. We have audited
are therefore the key audit matters. We describe these matters in our these conversion adjustments made by the Holding Company’s
auditors’ report unless law or regulation precludes public disclosure Management. Our opinion in so far as it relates to such subsidiary
about the matter or when, in extremely rare circumstances, we determine and step down subsidiaries located outside India is based on the
that a matter should not be communicated in our report because the reports of other auditors under the aforementioned GAAPs in
adverse consequences of doing so would reasonably be expected to respective countries and the aforesaid conversion adjustments
outweigh the public interest benefits of such communication. prepared by the Management of the Holding Company and audited
by us.
Other Matters
(a) The consolidated financial statements include the audited financial (c) The financial statements / financial information of five subsidiaries
statements / financial information of one joint operation, whose and five step-down subsidiaries, whose financial statements /
financial statements / financial information reflect total assets financial information reflect total assets (before consolidation
(before consolidation adjustments) of ` 8,039.78 crores as at 31 adjustments) of ` 459.19 crores as at 31 March 2021, total
March 2021, total revenue (before consolidation adjustments) of revenues (before consolidation adjustments) of ` 418.87 crores
` 8,010.01 crores and net profit after tax (before consolidation and total net loss after tax (before consolidation adjustments)
adjustments) of ` 577.76 crores and net cash inflows (before (net) of ` 35.51 crores and net cash inflows (before consolidation
consolidation adjustments) amounting to ` 720.67 crores for the adjustments) (net) amounting to ` 40.58 crores for the year
year ended on that date, as considered in the consolidated financial ended on that date, as considered in the consolidated financial
statements, which have been audited by their independent auditor. statements have not been audited either by us or by the other
The independent auditors’ report on financial statements of this auditors. The consolidated financial statements also include the
joint operation has been furnished to us by the management and Group’s share of net loss (and other comprehensive income) (net)
our opinion on the consolidated financial statements, in so far as of ` 4.51 crores for the year ended 31 March 2021, as considered in
it relates to the amounts and disclosures included in respect of the consolidated financial statements, in respect of two associates
this joint operation, and our report in terms of sub-section (3) of and one joint venture, whose financial statements / financial
Section 143 of the Act, in so far as it relates to the aforesaid joint information have not been audited by us or by other auditors.
operation is based solely on the audit report of the other auditor. These unaudited financial statements / financial information have
been furnished to us by the Management and our opinion on the
(b) The consolidated financial statements include the audited
consolidated financial statements, in so far as it relates to the
financial statements / financial information of two subsidiaries and
amounts and disclosures included in respect of these subsidiaries,
77 step down subsidiaries whose financial statements / financial
step down subsidiaries, associates and a joint venture and our
information reflect total assets (before consolidation adjustments)
report in terms of sub-section (3) of Section 143 of the Act in so far
of ` 243,064.09 crores as at 31 March 2021, total revenue
as it relates to the aforesaid subsidiaries, step down subsidiaries,
(before consolidation adjustments) of `195,867.98. crores and
associates and a joint venture, is based solely on such unaudited
total net loss after tax (before consolidation adjustments) (net)
financial statements / financial information. In our opinion and
of ` 10,607.61 crores and net cash inflows (before consolidation
according to the information and explanations given to us by the
adjustments) (net) of ` 10,415.88 crores for the year ended on that
Management, these financial statements / financial information
date, as considered in the consolidated financial statements, which
are not material to the Group.
have been audited by their respective independent auditors. The
consolidated financial statements also include the Group’s share Our opinion on the consolidated financial statements, and our
of net loss (and other comprehensive income) of ` 337.88 crores for report on Other Legal and Regulatory Requirements below, is
the year ended 31 March 2021, as considered in the consolidated not modified in respect of the above matters with respect to our
financial statements, in respect of six associates and two joint reliance on the work done and the reports of the other auditors
ventures, whose financial statements / financial information and the financial statements / financial information certified by the
have been audited by their respective independent auditors. The Management.
independent auditors’ reports on financial statements of these
entities have been furnished to us by the management and our

Consolidated
Report on Other Legal and Regulatory Requirements it relates to the Group, its associates and joint ventures and
A. As required by Section 143(3) of the Act, based on our audit and joint operations.
on the consideration of reports of the other auditors on separate iii. There has been no delay in transferring amounts to the
financial statements of such subsidiaries, step down subsidiaries, Investor Education and Protection Fund by the Holding
associates, joint operations and joint ventures as were audited Company or its subsidiary companies, associate companies
by other auditors, as noted in the ‘Other Matters’ paragraph, we and joint ventures and joint operations incorporated in India
report, to the extent applicable, that: during the year ended 31 March 2021.
a) We have sought and obtained all the information and iv. The disclosures in the consolidated financial statements
explanations which to the best of our knowledge and belief regarding holdings as well as dealings in specified bank notes
were necessary for the purposes of our audit of the aforesaid during the period from 8 November 2016 to 30 December
consolidated financial statements. 2016 have not been made in the financial statements since
b) In our opinion, proper books of account as required by they do not pertain to the financial year ended 31 March
law relating to preparation of the aforesaid consolidated 2021.
financial statements have been kept so far as it appears from C. With respect to the matter to be included in the Auditors’ report
our examination of those books and the reports of the other under section 197(16):
auditors.
We draw your attention to Note 44 to the consolidated financial
c) The consolidated balance sheet, the consolidated statement statements for the year ended 31 March 2021 according to which
of profit and loss (including other comprehensive income), the re-appointment of the CEO and Managing Director for the period
the consolidated statement of changes in equity and the from 15 February 2021 to 30 June 2021 and the remuneration
consolidated statement of cash flows dealt with by this for this period are subject to approval of the shareholders, which
Report are in agreement with the relevant books of account the Holding Company proposes to obtain in the forthcoming
maintained for the purpose of preparation of the consolidated Annual General Meeting, in accordance with the provisions of the
financial statements. Companies Act, 2013. Accordingly, the managerial remuneration
d) In our opinion, the aforesaid consolidated financial aggregating to ` 2.22 crores paid to the CEO and Managing
statements comply with the Ind AS specified under section Director of the Holding Company for the period 15 February 2021
133 of the Act. to 31 March 2021, calculated on a proportionate basis, exceeds
the prescribed limits under Section 197 read with Schedule V to
e) On the basis of the written representations received from the the Act, by ` 1.89 crores. This amount excludes Performance and
directors of the Holding Company as on 31 March 2021 taken Long Term Incentives which will be accrued post determination
on record by the Board of Directors of the Holding Company and approval by the Board of Directors of the Holding Company,
and the reports of the statutory auditors of its subsidiary and such amounts will also exceed the prescribed limits. Further,
companies, associate companies, joint ventures and joint the Holding Company is also in the process of obtaining Central
operations incorporated in India, none of the directors of the Government approval since the CEO and Managing Director is a
Group companies, its associate companies, joint ventures non-resident. We draw attention to Note 37 to the consolidated
and joint operations incorporated in India is disqualified as on financial statements for the year ended 31 March 2021 according
31 March 2021 from being appointed as a director in terms of to which the remuneration payable to non- executive independent
Section 164(2) of the Act. directors aggregating ` 1.70 crores is subject to approval of the
f) With respect to the adequacy of the internal financial shareholders, which the Holding Company proposes to obtain in
controls with reference to financial statements of the Holding the forthcoming Annual General Meeting, in accordance with the
Company, its subsidiary companies, associate companies provisions of the Companies Act, 2013.
and joint ventures and joint operations incorporated in India In our opinion and according to the information and explanations given to
and the operating effectiveness of such controls, refer to our us and based on the reports of the statutory auditors of such subsidiary
separate Report in “Annexure A”. companies, associate companies and joint ventures and joint operations
B. With respect to the other matters to be included in the Auditors’ incorporated in India which were not audited by us, the remuneration
Report in accordance with Rule 11 of the Companies (Audit paid during the current year by the subsidiary companies, associate
and Auditor’s) Rules, 2014, in our opinion and to the best of our companies and joint ventures and joint operations to its directors is in
information and according to the explanations given to us and accordance with the provisions of Section 197 of the Act. Except as stated
based on the consideration of the reports of the other auditors on above, the remuneration paid to any director by the Holding Company,
separate financial statements of the subsidiaries, associates and its subsidiary companies, associate companies and joint ventures and
joint ventures and joint operations, as noted in the ‘Other Matters’ joint operations is not in excess of the limit laid down under Section 197
paragraph: of the Act. The Ministry of Corporate Affairs has not prescribed other
details under Section 197(16) which are required to be commented upon
i. The consolidated financial statements disclose the by us.
impact of pending litigations as at 31 March 2021 on the
consolidated financial position of the Group, its associates For B S R & Co. LLP
and joint ventures and joint operations. Refer Note 39 to the Chartered Accountants
consolidated financial statements. Firm’s Registration No: 101248W/W-100022
ii. Provision has been made in the consolidated financial

statements, as required under the applicable law or Ind AS, Shiraz Vastani
for material foreseeable losses, on long-term contracts Partner
including derivative contracts. Refer Note 47(e) to the Place: Pune Membership No. 103334
consolidated financial statements in respect of such items as Date: 18 May 2021 UDIN - 21103334AAAAAX9949

Annexure A to the Independent Auditors’ Report on the

Consolidated Financial Statements of Tata Motors Limited
for the year ended 31 March 2021
Report on the Internal Financial Controls with reference to the aforesaid on the assessed risk. The procedures selected depend on the auditors’ judgment,
Consolidated Financial Statements under Clause (i) of Sub-section 3 of Section 143 including the assessment of the risks of material misstatement of the consolidated
of the Companies Act, 2013 (“the Act”) financial statements, whether due to fraud or error.
(Referred to in paragraph A(f) under ‘Report on Other Legal and Regulatory We believe that the audit evidence we have obtained and the audit evidence obtained
Requirements’ section of our report of even date) by the other auditors of the relevant subsidiary, joint operation, associates and joint
venture in terms of their reports referred to in the Other Matter paragraph below,
Opinion is sufficient and appropriate to provide a basis for our audit opinion on the internal
In conjunction with our audit of the consolidated financial statements of the Company financial controls with reference to consolidated financial statements.
as of and for the year ended 31 March 2021, we have audited the internal financial
controls with reference to consolidated financial statements of Tata Motors Limited Meaning of Internal Financial Controls with reference to consolidated
(hereinafter referred to as “the Holding Company”) and such companies incorporated financial statements
in India under the Companies Act, 2013 which are its subsidiary companies, its joint A company’s internal financial controls with reference to consolidated financial
operations, its associates and its joint ventures, as of that date. statements is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for
In our opinion, the Holding Company and such companies incorporated in India which external purposes in accordance with generally accepted accounting principles.
are its subsidiary companies, its joint operations, its associates and its joint ventures A company’s internal financial controls with reference to consolidated financial
, have , in all material respects, adequate internal financial controls with reference statements includes those policies and procedures that (1) pertain to the
to consolidated financial statements and such internal financial controls were maintenance of records that, in reasonable detail, accurately and fairly reflect the
operating effectively as at 31 March 2021, based on the internal financial controls transactions and dispositions of the assets of the company; (2) provide reasonable
with reference to consolidated financial statements criteria established by such assurance that transactions are recorded as necessary to permit preparation of
companies considering the essential components of such internal controls stated in financial statements in accordance with generally accepted accounting principles,
the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting and that receipts and expenditures of the company are being made only in accordance
issued by the Institute of Chartered Accountants of India (the “Guidance Note”). with authorisations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorised
Management’s Responsibility for Internal Financial Controls acquisition, use, or disposition of the company’s assets that could have a material
The respective Company’s management and the Board of Directors are responsible effect on the financial statements.
for establishing and maintaining internal financial controls with reference to
consolidated financial statements based on the criteria established by the Inherent Limitations of Internal Financial Controls with reference to
respective company considering the essential components of internal control stated consolidated financial statements
in the Guidance Note. These responsibilities include the design, implementation and Because of the inherent limitations of internal financial controls with reference to
maintenance of adequate internal financial controls that were operating effectively consolidated financial statements, including the possibility of collusion or improper
for ensuring the orderly and efficient conduct of its business, including adherence management override of controls, material misstatements due to error or fraud may
to the respective company’s policies, the safeguarding of its assets, the prevention occur and not be detected. Also, projections of any evaluation of the internal financial
and detection of frauds and errors, the accuracy and completeness of the accounting controls with reference to consolidated financial statements to future periods are
records, and the timely preparation of reliable financial information, as required subject to the risk that the internal financial controls with reference to consolidated
under the Companies Act, 2013 (hereinafter referred to as “the Act”). financial statements may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
Auditors’ Responsibility
Our responsibility is to express an opinion on the internal financial controls with Other matter
reference to consolidated financial statements based on our audit. We conducted Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating
our audit in accordance with the Guidance Note and the Standards on Auditing, effectiveness of the internal financial controls with reference to consolidated
prescribed under Section 143(10) of the Act, to the extent applicable to an audit financial statements in so far as it relates to one subsidiary, one joint operation, one
of internal financial controls with reference to consolidated financial statements. associate and one joint venture, which are companies incorporated in India, is based
Those Standards and the Guidance Note require that we comply with ethical solely on the corresponding reports of the auditors of such companies incorporated
requirements and plan and perform the audit to obtain reasonable assurance in India. Our opinion is not modified in respect of this matter.
about whether adequate internal financial controls with reference to consolidated
financial statements were established and maintained and if such controls operated For B S R & Co. LLP
effectively in all material respects. Chartered Accountants
Firm’s Registration No: 101248W/W-100022
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls with reference to consolidated financial
statements and their operating effectiveness. Our audit of internal financial Shiraz Vastani
controls with reference to consolidated financial statements included obtaining an Partner
understanding of internal financial controls with reference to consolidated financial Place: Pune Membership No. 103334
statements, assessing the risk that a material weakness exists, and testing and Date: 18 May 2021 UDIN - 21103334AAAAAX9949
evaluating the design and operating effectiveness of the internal controls based

Consolidated
Consolidated Balance Sheet
(` in crores)
As at March 31, As at March 31,
Notes
2021 2020
I. ASSETS
(1) Non-current assets
(a) Property, plant and equipment 3 (a) 79,640.05 77,882.83
(b) Capital work-in-progress 3 (b) 8,377.14 8,599.56
(c) Right of use assets 4 6,490.66 6,275.34
(d) Goodwill 5 803.72 777.06
(e) Other intangible assets 6 (a) 51,773.18 42,171.91
(f) Intangible assets under development 6 (b) 12,586.79 27,022.73
(g) Investment in equity accounted investees 9 4,200.79 4,418.89
(h) Financial assets:
(i) Other investments 10 1,368.30 1,028.05
(ii) Finance receivables 18 16,846.82 16,833.77
(iii) Loans and advances 12 1,204.59 782.78
(iv) Other financial assets 13 5,813.98 4,749.57
(i) Deferred tax assets (net) 22 4,520.35 5,457.90
(j) Non-current tax assets (net) 1,003.30 1,152.05
(k) Other non-current assets 20 1,608.49 5,381.57
196,238.16 202,534.01
(2) Current assets
(a) Inventories 14 36,088.59 37,456.88
(b) Financial assets:
(i) Other investments 11 19,051.19 10,861.54
(ii) Trade receivables 15 12,679.08 11,172.69
(iii) Cash and cash equivalents 16 31,700.01 18,467.80
(iv) Bank balances other than (iii) above 17 15,092.45 15,259.17
(v) Finance receivables 18 17,868.09 14,245.30
(vi) Loans and advances 12 1,749.40 935.25
(vii) Other financial assets 13 5,274.32 4,586.48
(c) Current tax assets (net) 865.31 142.80
(d) Assets classified as held-for-sale 47 (d) 220.80 194.43
(e) Other current assets 21 6,298.40 6,264.91
146,887.64 119,587.25
TOTAL ASSETS 343,125.80 322,121.26
Equity
(a) Equity share capital 23 765.81 719.54
(b) Other equity 24 54,480.91 62,358.99
Equity attributable to owners of Tata Motors Ltd 55,246.72 63,078.53
Non-controlling interests 1,573.49 813.56
56,820.21 63,892.09
Liabilities
(1) Non-current liabilities
(a) Financial liabilities:
(i) Borrowings 26 93,112.77 83,315.62
(ii) Lease liabilities 5,412.06 5,162.94
(iii) Other financial liabilities 28 2,556.35 3,858.48
(b) Provisions 30 13,606.76 14,736.69
(c) Deferred tax liabilities (net) 22 1,555.89 1,941.87
(d) Other non-current liabilities 31 12,312.58 8,759.52
128,556.41 117,775.12
(2) Current liabilities
(a) Financial liabilities:
(i) Borrowings 27 21,662.79 16,362.53
(iv) Acceptances 7,860.31 2,771.33
(v) Other financial liabilities 29 34,854.59 36,544.00
(b) Provisions 30 12,848.03 10,329.04
(c) Current tax liabilities (net) 1,086.44 1,040.14
(d) Other current liabilities 32 10,443.18 8,965.95
157,749.18 140,454.05
See accompanying notes to consolidated financial statements

For B S R & Co. LLP

UDIN: 21103334AAAAAX9949
Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021

Consolidated Statement of Profit and Loss
(` in crores)
Year ended March Year ended March
Notes
31, 2021 31, 2020
I. Revenue from operations 33
(a) Revenue 246,972.17 258,594.36
(b) Other Operating Revenues 2,822.58 2,473.61
Total revenue from operations 249,794.75 261,067.97
II. Other income (includes Government grants) 34 2,643.19 2,973.15
IV. Expenses:
(a) Cost of materials consumed
(i) Cost of materials consumed 141,392.43 152,968.74
(ii) Basis adjustment on hedge accounted derivatives (35.16) (297.27)
(b) Purchase of products for sale 12,250.09 12,228.35
(c) Changes in inventories of finished goods, work-in-progress and products for sale 4,684.16 2,231.19
(d) Employee benefits expense 35 27,648.48 30,438.60
(e) Finance costs 36 8,097.17 7,243.33
(f) Foreign exchange (gain)/loss (net) (1,732.15) 1,738.74
(h) Product development/engineering expenses 5,226.63 4,188.49
(i) Other expenses 37 40,921.97 57,087.46
(j) Amount transferred to capital and other account (12,849.13) (17,503.40)
V. Profit/ (Loss) before exceptional items and tax (III-IV) 3,286.74 (7,708.54)
VI. Exceptional Items:
(a) Defined benefit pension plan amendment past service cost 47 (c) 84.81 -
(b) Employee separation cost 459.90 436.14
(c) Charge associated with change in JLR Strategy 47 (b) 14,994.30 -
(d) Write off/provision (reversal) for tangible/intangible assets (including under development) 47 (h) 114.00 (73.04)
(e) Impairment losses/(Reversal) in Passenger Vehicle Business 8(a) (1,182.41) 1,418.64
(f) Provision/(Reversal) for onerous contracts and related supplier claims 8(b) (663.00) 777.00
(g) Reversal for cost of closure of operation of a subsidary (46.58) (65.62)
(h) Impairment in subsidiaries - 353.20
(i) Provision for loan given to a Joint venture - 25.12
VII. Profit/(Loss) before tax (V-VI) (10,474.28) (10,579.98)
VIII. Tax expense/(credit) (net): 22
(a) Current tax (including Minimum Alternate Tax) 1,710.18 1,893.05
(b) Deferred tax 831.68 (1,497.80)
Total tax expense/(credit) (net) 2,541.86 395.25
X. Share of profit/(loss) of joint ventures and associates (net) 9 (378.96) (1,000.00)
XI. Profit/(loss) for the year (IX+X) (13,395.10) (11,975.23)
Attributable to:
(a) Shareholders of the Company (13,451.39) (12,070.85)
(b) Non-controlling interests 56.29 95.62
XII. Other comprehensive income/(loss):
(A) (i) Items that will not be reclassified to profit or loss:
(a) Remeasurement gains and (losses) on defined benefit obligations (net) (7,285.87) 8,803.29
(b) Equity instruments at fair value through other comprehensive income (net) 415.86 (132.99)
(c) Share of other comprehensive income in equity accounted investees (net) 3.02 (2.48)
(ii) Income tax (expense)/credit relating to items that will not be reclassified to profit or loss 1,369.11 (1,375.55)
(B) (i) Items that will be reclassified to profit or loss:
(a) Exchange differences in translating the financial statements of foreign operations 3,720.98 2,233.22
(b) Gains and (losses) in cash flow hedges (including forecast inventory purchases) (refer note 24) 5,439.35 2,150.70
(c) Gains and (losses) on finance receivables held at fair value through other comprehensive income (net) 206.90 136.24
(d) Share of other comprehensive income in equity accounted investees (net) 150.01 102.61
(ii) Income tax (expense)/credit relating to items that will be reclassified to profit or loss (1,100.02) (410.57)
Total other comprehensive income/(loss) for the year (net of tax) 2,919.34 11,504.47
Attributable to:
(a) Shareholders of the Company 2,900.19 11,491.97
XIII. Total comprehensive income/(loss) for the year (net of tax) (XI+XII) (10,475.76) (470.76)
Attributable to:
(a) Shareholders of the Company (10,551.20) (578.88)
XIV. Earnings per equity share (EPS) 45
(a) Ordinary shares (face value of `2 each):
(i) Basic EPS ` (36.99) (34.88)
(ii) Diluted EPS ` (36.99) (34.88)
(b) ‘A’ Ordinary shares (face value of `2 each):
(i) Basic EPS ` (36.99) (34.88)
(ii) Diluted EPS ` (36.99) (34.88)

For B S R & Co. LLP

Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021
Consolidated
Consolidated Cash Flow Statement
(` in crores)
March 31, 2021 March 31, 2020
Cash flows from operating activities:
Profit/(Loss) for the year (13,395.10) (11,975.23)
Adjustments for:
Allowances for finance receivables 957.93 660.21
Allowances for trade and other receivables 50.01 137.03
Inventory write-down 129.19 351.14
Reversal for costs of closure of operations of a subsidiary company (51.99) (65.62)
Write off/provision (reversal) for tangible/intangible assets (including under development) 114.00 -
Charge associated with change in JLR Strategy 14,994.30 -
Impairment in subsidiaries - 353.20
Impairment losses/(Reversal) in Passenger Vehicle Business (1,182.41) 1,418.64
Provision/(Reversal) for onerous contracts and related supplier claims (663.00) 777.00
Defined benefit pension plan amendment past service cost 84.81 -
Employee separation cost 430.76 409.78
Accrual for share-based payments 9.04 4.70
(Gain) /loss on Marked-to-market investments measured at fair value through profit or loss (19.91) 389.05
(Profit) /loss on sale of assets (including assets scrapped/written off) (net) 265.59 316.19
Profit on sale of investments (net) (177.26) (187.34)
Provision for loan given to a Joint ventures - 25.12
Share of (profit)/loss of joint ventures and associates (net) 378.96 1,000.00
Tax expense (net) 2,541.86 395.25
Finance costs 8,097.17 7,243.33
Interest income (492.53) (1,170.12)
Dividend income (18.37) (21.13)
Foreign exchange (gain)/loss (net) (4,402.12) 1,865.85
Cash flows from operating activities before changes in following assets and liabilities 31,197.64 23,352.48
Finance receivables (4,386.94) 2,020.77
Trade receivables (1,118.35) 7,928.93
Loans and advances and other financial assets (1,308.92) 64.53
Other current and non-current assets 3,853.53 (2,830.89)
Inventories 3,814.50 2,325.50
Trade payables and acceptances 5,748.15 (8,084.81)
Other current and non-current liabilities 2,217.87 (6,450.14)
Other financial liabilities (1,168.39) 272.74
Provisions (7,744.02) 9,818.77
Cash generated from operations 31,105.07 28,417.88
Income tax paid (net) (2,104.56) (1,784.94)
Net cash from operating activities 29,000.51 26,632.94
Cash flows from investing activities:
Payments for property, plant and equipment (11,775.65) (14,319.17)
Payments for other intangible assets (8,429.75) (15,382.86)
Proceeds from sale of property, plant and equipment 350.58 171.48
Investments in mutual fund (purchased)/sold (net) (7,432.85) (1,339.29)
Acquisition of subsidiary company - (27.04)
Investment in equity accounted investees (9.90) (606.40)
Investments - others (97.30) (99.41)
Proceeds from loans given to others - 3.42
Loans given to joint venture - (1.70)
Proceeds from sale of investments in other companies 225.82 21.45
Interest received 427.51 1,104.48
Dividend received 18.37 21.14
Dividend received from equity accounted investees 1.51 622.44
Deposits with financial institution (1,000.00) (1,000.00)
Realisation of deposit with financial institution 750.00 750.00
Deposits/restricted deposits with banks (38,243.27) (40,676.65)
Realisation of deposits/restricted deposits with banks 39,088.68 36,602.33
(Increase) / decrease in short term Inter-corporate deposits - (14.44)
Net cash used in investing activities (26,126.25) (34,170.22)

Consolidated Cash Flow Statement
(` in crores)
March 31, 2021 March 31, 2020
Cash flows from financing activities:
Proceeds from issue of shares and warrants (net of issue expenses) 2,602.51 3,888.77
Proceeds from long-term borrowings 29,642.36 28,741.21
Repayment of long-term borrowings (18,629.61) (16,993.77)
Proceeds from option settlement of long term borrowings 35.01 190.90
Repayment of matured fixed deposits (0.48) (6.75)
Proceeds from short-term borrowings 20,807.15 10,707.30
Repayment of short-term borrowings (11,078.93) (12,852.93)
Net change in other short-term borrowings (with maturity up to three months) (4,544.27) (1,587.12)
Repayment of lease liability ( including interest) (1,477.28) (1,345.61)
Dividend paid to non-controlling interest shareholders of subsidiaries (including dividend distribution tax) (28.75) (53.32)
Proceeds from issuance /(payment) for acquisition of shares from non-controlling 0.24 (22.15)
Dividend paid (1.56) (3.52)
Proceeds from issuance of perpetual debt instrument classified as equity by a subsidiary (net) 700.75 245.00
Interest paid [including discounting charges paid `900.04 crores (March 31, 2020 `968.85 crores)] (8,122.94) (7,518.40)
Net cash from financing activities 9,904.20 3,389.61
Net increase/(decrease) in cash and cash equivalents 12,778.46 (4,147.67)
Cash and cash equivalents as at April 1, (opening balance) 18,467.80 21,559.80
Effect of foreign exchange on cash and cash equivalents 453.75 1,055.67
Cash and cash equivalents as at March 31, (closing balance) 31,700.01 18,467.80
Non-cash transactions:
Liability towards property, plant and equipment and intangible asests purchased on credit/deferred credit 5,367.84 6,626.78

For B S R & Co. LLP

Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021

262
Consolidated Statement of Changes in Equity
|
(` in crores)
Particulars
Proceeds from issuance of shares 46.27
B. OTHER EQUITY
(` in crores)
Reserves Other components of equity
Reserve for Debt Equity Attributable

Share- Non-
Capital Debenture research Earned instruments instruments Cost of Currency to Owners of Total other
Securities based Share Special Capital Retained Hedging controlling
redemption redemption and human surplus through Other through Other hedging translation Tata Motors equity
Premium payments Warrants reserve Reserve earnings Reserve interests
reserve reserve resource reserve Comprehensive Comprehensive reserve reserve Limited
reserve
development Income Income
Opening balance as at April 1, 2020 21,872.89 13.14 867.50 2.28 1,038.84 200.74 490.15 45.65 1,164.20 35,882.82 88.63 (77.37) (3,891.90) (213.28) 4,874.70 62,358.99 813.56 63,172.55
Profit/(Loss) for the year - - - - - - - - - (13,451.39) - - - - - (13,451.39) 56.29 (13,395.10)
Other comprehensive income /(loss) for the year - - - - - - - - - (5,901.17) 168.15 402.61 4,146.66 231.43 3,852.51 2,900.19 19.15 2,919.34
Total comprehensive income/(loss) for the year - - - - - - - - - (19,352.56) 168.15 402.61 4,146.66 231.43 3,852.51 (10,551.20) 75.44 (10,475.76)
Amounts recognized in inventory - - - - - - - - - - - - 56.59 48.73 - 105.32 - 105.32
Issue of shares pursuant to conversion of share warrants 3,423.74 - (867.50) - - - - - - - - - - - - 2,556.24 - 2,556.24
Realised gain on investments held at fair value through Other - - - - - - - - - 4.36 - (4.36) - - - - - -
Acquisition of Subsidiary 2.52 2.52 - 2.52
Distribution to Minority - - - - - - - - - - - - - - (28.75) (28.75)
Issue of perpetual instrument classified as equity by a subsidiary - - - - - - - - - - - - - - - - 713.00 713.00
Shares issued to non-controlling interest - - - - - - - - - - - - - - 0.24 0.24
Share based payments - 9.04 - - - - - - - - - - - - - 9.04 - 9.04
Transfer (from)/to retained earnings - - - - (134.40) - 88.71 - - 45.69 - - - - - - - -
Balance as at March 31, 2021 25,296.63 22.18 - 2.28 904.44 200.74 578.86 45.65 1,164.20 16,582.83 256.78 320.88 311.35 66.88 8,727.21 54,480.91 1,573.49 56,054.40
Note:
During the financial year ended March 31, 2021, Tata Motors Finance Limited, a subsidiary of the Company issued perpetual securities of `713.00 crores bearing a coupon interest
rate ranging from 9.55% to 10.50% per annum , with a step up provision if the securities are not called after 10 years. The payment of any coupon may be cancelled or suspended at
the discretion of the Board of Directors of Tata Motors Finance Limited. Accordingly, the Company has accounted these securities as equity instruments and any amount attributable
to investors of these perpetual securities have been presented as non-controlling interest.
For B S R & Co. LLP

Company Secretary
Consolidated
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021
Consolidated Statement of Changes in Equity
(` in crores)
Particulars
Proceeds from issuance of shares 40.32
B. OTHER EQUITY
(` in crores)
Reserves Other components of equity
Reserve for Debt Equity Attributable
Non- Total
Share-based Capital Debenture research Earned instruments instruments Cost of Currency to Owners of
Particulars Securities Share Special Capital Retained Hedging controlling other
payments redemption redemption and human surplus through Other through Other hedging translation Tata Motors
Premium Warrants reserve Reserve earnings Reserve interests equity
reserve reserve reserve resource reserve Comprehensive Comprehensive reserve reserve Limited
development Income Income
Balance as at April 1, 2019 18,891.93 8.44 - 2.28 1,085.94 200.74 440.83 45.65 1,164.20 40,719.28 - 62.08 (5,602.62) (70.80) 2,552.39 59,500.34 523.06 60,023.40
Effect of transition to Ind AS 116 - - - - - - - - - (196.14) - - - - - (196.14) - (196.14)
Adjusted opening balance as at April 1, 2019 18,891.93 8.44 - 2.28 1,085.94 200.74 440.83 45.65 1,164.20 40,523.14 - 62.08 (5,602.62) (70.80) 2,552.39 59,304.20 523.06 59,827.26
Loss for the year - - - - - - - - - (12,070.85) - - - - - (12,070.85) 95.62 (11,975.23)
Other comprehensive income /(loss) for the year - - - - - - - - - 7,432.75 88.63 (139.45) 1,958.38 (170.65) 2,322.31 11,491.97 12.50 11,504.47
Total comprehensive income/(loss) for the year - - - - - - - - - (4,638.10) 88.63 (139.45) 1,958.38 (170.65) 2,322.31 (578.88) 108.12 (470.76)
Amounts recognized in inventory - - - - - - - - - - - - (247.66) 28.17 - (219.49) - (219.49)

Issue of shares pursuant to preferential allotment (net 2,980.96 - - - - - - - - - - - - - - 2,980.96 - 2,980.96
of issue expenses of `3.08 crores)
Issue of Share warrants - - 867.50 - - - - - - - - - - - - 867.50 - 867.50
Acquisition of minority - - - - - - - - - - - - - - - - (22.15) (22.15)
Minority changes during the period - - - - - - - - - - - - - - - - 250.00 250.00
Dividend paid (including dividend tax) - - - - - - - - - - - - - - - - (45.47) (45.47)
Share based payments - 4.70 - - - - - - - - - - - - - 4.70 - 4.70
Transfer from debenture redemption reserve - - - - (47.10) - - - - 47.10 - - - - - - - -
Transfer (from)/to retained earnings - - - - - - 49.32 - - (49.32) - - - - - - - -
Balance as at March 31, 2020 21,872.89 13.14 867.50 2.28 1,038.84 200.74 490.15 45.65 1,164.20 35,882.82 88.63 (77.37) (3,891.90) (213.28) 4,874.70 62,358.99 813.56 63,172.55

For B S R & Co. LLP


|
Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021
263
Consolidated
Notes Forming Part of Consolidated Financial Statements
1. BACKGROUND AND OPERATIONS Non-controlling interests in the net assets (excluding

Tata Motors Limited and its subsidiaries and joint operations, goodwill) of consolidated subsidiaries are identified
(collectively referred to as “the Company” or “Tata Motors”), separately from the Company’s equity. The interest of non-
designs, manufactures and sells a wide range of automotive controlling shareholders may be initially measured either at
vehicles. The Company provides financing for the vehicles sold fair value or at the non-controlling interests’ proportionate
by dealers of the Company in certain markets. The Company also share of the fair value of the acquiree’s identifiable net
manufactures engines for industrial and marine applications, assets. The choice of measurement basis is made on an
aggregates such as axles and transmissions for commercial acquisition-by-acquisition basis. Subsequent to acquisition,
vehicles and factory automation equipment, and provides the carrying amount of non-controlling interests is the
information technology services. amount of those interests at initial recognition plus the
non-controlling interests’ share of subsequent changes
Tata Motors Limited is a public limited Company incorporated and in equity. Total comprehensive income is attributed to
domiciled in India and has its registered office in Mumbai, India. non-controlling interests even if it results in the non-
As at March 31, 2021, Tata Sons Private Limited together with controlling interest having a deficit balance. Changes in the
its subsidiaries, owns 46.33% of the Ordinary shares and 7.66% Company’s interests in subsidiaries that do not result in a
of ‘A’ Ordinary shares of the Company, and has the ability to loss of control are accounted for as equity transactions. The
significantly influence the Company’s operation. carrying amount of the Company’s interests and the non-
The Company’s operations include the Jaguar Land Rover controlling interests are adjusted to reflect the changes in
business (referred to as JLR or Jaguar Land Rover). their relative interests in the subsidiaries. Any difference
between the amount by which the non-controlling interests
The consolidated financial statements were approved by the are adjusted and the fair value of the consideration paid or
Board of Directors and authorised for issue on May 18, 2021. received is recognised directly in equity and attributed to
2. SIGNIFICANT ACCOUNTING POLICIES owners of the Company. When the Company loses control
a. Statement of compliance of a subsidiary, the profit or loss on disposal is calculated
These financial statements have been prepared in as the difference between (i) the aggregate of the fair value
accordance with Ind AS as notified under the Companies of consideration received and the fair value of any retained
(Indian Accounting Standards) Rules, 2015 read with interest and (ii) the previous carrying amount of the assets
Section 133 of the Companies Act, 2013 (“the Act”). (including goodwill), and liabilities of the subsidiary and any
non-controlling interests. Amounts previously recognised
b. Basis of preparation in other comprehensive income in relation to the subsidiary
The consolidated financial statements have been prepared are accounted for (i.e., reclassified to profit or loss) in the
on historical cost basis except for certain financial same manner as would be required if the relevant assets or
instruments which are measured at fair value at the end of liabilities were disposed of. The fair value of any investment
each reporting period as explained in the accounting policies retained in the former subsidiary at the date when control
below. is lost is regarded as the fair value on initial recognition for
c. Basis of consolidation subsequent accounting or, when applicable, the cost on
Subsidiaries initial recognition of an investment in an associate or jointly
The consolidated financial statements include Tata Motors controlled entity.
Limited and its subsidiaries. Subsidiaries are entities Interests in joint arrangements
controlled by the Company. Control exists when the A joint arrangement is an arrangement of which two or more
Company (a) has power over the investee, (b) it is exposed, parties have joint control. Joint control is the contractually
or has rights, to variable returns from its involvement with agreed sharing of control of an arrangement, which exists
the investee and ( c) has the ability to affect those returns only when decisions about the relevant activities require the
through its power to direct relevant activities of the investee. unanimous consent of the parties sharing control.
Relevant activities are those activities that significantly
affect an entity’s returns. The Company reassesses whether Joint operations
or not it controls an investee if facts and circumstances Certain of the Company’s activities, are conducted through
indicate that there are changes to one or more of the three joint operations, which are joint arrangements whereby
elements listed above. In assessing control, potential voting the parties that have joint control of the arrangement
rights that currently are exercisable and other contractual have rights to the assets, and obligations for the liabilities,
arrangements that may influence control are taken into relating to the arrangement. The Company recognizes, in the
account. The results of subsidiaries acquired or disposed consolidated financial statements, its share of the assets,
of during the year are included in the consolidated financial liabilities, income and expenses of these joint operations
statements from the effective date of acquisition and up to incurred jointly with the other partners, along with its
the effective date of disposal, as appropriate. share of income from the sale of the output and any assets,
liabilities and expenses that it has incurred in relation to the
Inter-company transactions and balances including joint operation.
unrealised profits are eliminated in full on consolidation.

Joint ventures Purchase consideration in excess of the Company’s interest

A joint venture is a joint arrangement whereby the parties in the acquiree’s net fair value of identifiable assets,
that have joint control of the arrangement have rights to liabilities and contingent liabilities is recognised as goodwill.
the net assets of the arrangement. The results, assets Excess of the Company’s interest in the net fair value of the
and liabilities of a joint venture are incorporated in these acquiree’s identifiable assets, liabilities and contingent
financial statements using the equity method of accounting liabilities over the purchase consideration is recognised,
as described below. after reassessment of fair value of net assets acquired, in
the Capital Reserve.
Associates
Associates are those entities over which the Company has e. Going Concern
significant influence. Significant influence is the power to The Company’s consolidated financial statements have
participate in the financial and operating policy decisions been prepared on a going concern basis.
of the investee but is not control or joint control those The Company has has performed an assessment of its
policies. Significant influence is presumed to exist when financial position as at March 31, 2021 and forecasts of
the Company holds 20 percent or more of the voting power the Company and JLR for a period of eighteen months from
of the investee. If accounting policies of associates differ the date of these financial statements (the ‘Going Concern
from those adopted by the Group, the accounting policies of Assessment Period’ and the ‘Foreseeable Future’).
associates are aligned with those of the Group. The results,
assets and liabilities of associates are incorporated in these In developing these forecasts, the Company has modelled
financial statements using the equity method of accounting a base case, which has been further sensitised using severe
as described below. but plausible downside scenarios.
Equity method of accounting (equity accounted The base case covers the Going Concern Assessment
investees) Period and considers the estimated on-going impact of the
An interest in an associate or joint venture is accounted for COVID-19 global pandemic and a cautious view of the impact
using the equity method from the date the investee becomes of near-term supply chain challenges related to global semi-
an associate or a joint venture and are recognised initially at conductor shortages. It also accounts for other end-market
cost. The carrying value of investment in associates and joint and operational factors throughout the Going Concern
ventures includes goodwill identified on date of acquisition, Assessment Period. The base case assumes continued
net of any accumulated impairment losses. The consolidated recovery in industry volumes based upon external industry
financial statements include the Company’s share of forecasts. The forecasts relating to JLR also consider the
profits or losses, other comprehensive income and equity associated costs relating to the implementation of the
movements of equity accounted investments, from the date Reimagine strategy as well as cost performance based on
that significant influence or joint control commences until recent experience, with some cost savings in line with the
the date that significant influence or joint control ceases. Refocus programme.
When the Company’s share of losses exceeds its interest This has been further sensitized using more severe
in an equity accounted investment, the carrying amount of but plausible scenarios considering external market
that interest (including any long-term interests in the nature commentaries and other factors impacting the global
of net investments) is reduced to nil and the recognition of economy and automotive industry. In JLR forecasts, the
further losses is discontinued except to the extent that the management has considered the impact of a repeat of the
Company has incurred constructive or legal obligations or Covid-19 pandemic.
has made payments on behalf of the investee.
Management do not consider more extreme scenarios than
When the Company transacts with an associate or joint the ones assessed to be plausible.
venture of the Company, unrealised profits and losses are
eliminated to the extent of the Company’s interest in its Within the Going Concern Assessment Period there is a £1bn
associate or joint venture. liquidity covenant attached to both the UK Export Finance
loan and new Revolving Credit Facility of JLR. Certain
Dividends are recognised when the right to receive payment lenders of Tata Motors Ltd have also waived the compliance
is established. with specific covenants under their loan agreements, with
d. Business combination one of the lenders extending the waiver until March 31,
Acquisitions of subsidiaries and businesses are accounted 2023 and the other lender extending the waiver until March
for using the acquisition method. Acquisition related costs 31, 2022. Tata Sons Private Limited, as promoter of the
are recognised in profit or loss as incurred. The acquiree’s Company, will provide financial support to help the parent
identifiable assets, liabilities and contingent liabilities that Company meet its liquidity needs and covenants under the
meet the conditions for recognition are recognised at their borrowing agreements with lenders until at least March 31,
fair value at the acquisition date, except certain assets 2023 or the completion of the Company’s plan to subsidiarize
and liabilities that are required to be measured as per the it’s Passenger Vehicles business into a separate subsidiary
applicable standard. through a scheme of arrangement, whichever is earlier.

Consolidated
In evaluating the forecasts, the Company and JLR have Covid-19 pandemic has rapidly spread throughout the
taken into consideration both the sufficiency of liquidity to world, including India. Governments in India and across
meet obligations as they fall due as well as potential impact the world have taken significant measures to curb the
on compliance with financial covenants during the forecast spread of the virus including imposing mandatory
period. lockdowns and restrictions in activities. Consequently,
Company’s manufacturing plants and offices had
These forecasts indicate that the Company will have
to be closed down / operate under restrictions for a
sufficient liquidity to operate and discharge its liabilities
considerable period of time during the year and post
as they become due, without breaching any relevant
year end. Lockdowns / restrictions have impacted
covenants, taking into account only cash generated from
the Company operationally including on commodity
operations and the funding facilities existing on the date of
prices, supply chain matters (including semiconductor
authorization of these financial statements and as at March
supplies), consumer demand and recoveries of loans
31, 2021, including the presently undrawn revolving credit
under its vehicle financing business. More recently,
facilities and the support from Tata Sons Limited.
the next wave of the pandemic has impacted India and
Based on the evaluation described above, management the Company is monitoring the situation closely taking
believes that the Company has sufficient financial resources into account the increasing level of infections in India
available to it at the date of approval of these financial and across the world and directives from the various
statements and that it will be able to continue as a ‘going Governments. Management believes that it has taken
concern’ in the foreseeable future and for a period of at least into account all the possible impacts of known events
September 30, 2022. arising from COVID-19 pandemic in the preparation
of the financial results including but not limited to
f. Use of estimates and judgments
its assessment of Company’s liquidity and going
The preparation of financial statements in conformity with
concern, recoverable values of its property, plant
Ind AS requires management to make judgments, estimates
and equipment, intangible assets, intangible assets
and assumptions, that affect the application of accounting
under development, allowances for losses for finance
policies and the reported amounts of assets, liabilities,
receivables and the net realisable values of other
income, expenses and disclosures of contingent assets and
assets. However, given the effect of these lockdowns
liabilities at the date of these financial statements and the
and restrictions on the overall economic activity and
reported amounts of revenues and expenses for the years
in particular on the automotive industry, the impact
presented. Actual results may differ from these estimates.
assessment of COVID-19 on the abovementioned
Estimates and underlying assumptions are reviewed at each financial statement captions is subject to significant
balance sheet date. Revisions to accounting estimates are estimation uncertainties due to its nature and duration
recognised in the period in which the estimate is revised and, accordingly, the actual impacts in future may
and in future periods affected. In particular, information be different from those estimated as at the date of
about significant areas of estimation uncertainty and critical approval of these financial results. The Company will
judgments in applying accounting policies that have the continue to monitor any material changes to future
most significant effect on the amounts recognised in the economic conditions and consequential impact on its
financial statements are included in the following notes: financial results
i) Note 3, 6, 7 and 8 - Property, plant and equipment and g. Revenue recognition
intangible assets – Useful lives and impairment The Company generates revenue principally from –
ii) Note 5 - Impairment of goodwill a) Sale of products – (i) commercial and passenger
vehicles and vehicle parts and (ii) Sales of other
iii) Note 22 - Recoverability/recognition of deferred tax
products- certain software products and other
assets
automotive products
iv) Note 30 - Provision for product warranty
The Company recognizes revenues on the sale of
v) Note 38 - Assets and obligations relating to employee products, net of discounts, sales incentives, customer
benefits bonuses and rebates granted, when products are
delivered to dealers or when delivered to a carrier
vi) Note 18 - Allowances for credit losses for finance
for export sales, which is when control including
receivables
risks and rewards and title of ownership pass to the
vii) Estimated discounts / incentives required to be paid to customer. The Company offers sales incentives in the
dealers on retail of vehicles form of variable marketing expense to customers,
which vary depending on the timing and customer
viii) Note 2(e) – Going concern assessment
of any subsequent sale of the vehicle. This sales
ix) Estimation of uncertainties relating to the global incentive is accounted for as a revenue reduction and
health pandemic from COVID-19 (COVID-19): is constrained to a level that is highly probable not

to reverse the amount of revenue recognised when reward points granted to customers is recognized as
any associated uncertainty is subsequently resolved. a deferred income liability and transferred to income
The Company estimates the expected sales incentive when customers redeem their reward points.
by market and considers uncertainties including
For certain sale of services wherein performance
competitor pricing, ageing of retailer stock and local
obligation is satisfied over a period of time, any amount
market conditions.
received in advance is recorded as contract liability
Revenue is recognised on a bill-and-hold basis where and recognized as revenue when service is rendered
vehicles, for example, are sold to the customer but to customers. Any amount of income accrued but not
are retained in the Company’s possession at a vehicle billed to customers in respect of such contracts is
holding compound on behalf of the customer ahead of recorded as a contract asset. Such contract assets are
being physically transferred to them at a future time. transferred to Trade receivables on actual billing to
In such arrangements it is ensured that the customer customers.
has obtained the ultimate control of the product.
Refund liabilities comprise of obligation towards
There are certain vehicles which are being given to customers to pay for discounts and sales incentives.
the customers along with operations and maintenance
Vehicle sales do not typically include allowances for
of the same. These are considered as finance leases
returns or refunds, although in some markets there
and accordingly, revenue is recognised at the lease
is legislative requirement for the Company as an
commencement date at fair value of the leased asset.
automotive manufacturer to repurchase or reacquire a
The cost of sales is reduced for the present value of
vehicle if quality issues arise that have been remedied
unguaranteed residual values. In addition, initial direct
a number of times and where the owner no longer
costs are recognised as cost of sales at the lease
wishes to own the vehicle as a result.
commencement date.
Proceeds from sale of vehicles for which the Company
The consideration received in respect of transport
or any of its subsidiaries have retained buy back
arrangements for delivering of vehicles to the
obligation in future is recorded as a liability – (i)
customers are recognized net of their costs within
Proceeds received in excess of agreed buy back price
revenues in the consolidated statement of profit and
is recognized as Deferred income liability and (ii) the
loss.
agreed buy back price is recognized as Buy back
Revenues are recognized when collectability of the liability. Deferred income liability is recognized as
resulting receivable is reasonably assured. operating lease income on time proportionate basis
over date of sale and date of buy back.
b) Sale of services - maintenance service, telematics
features and extended warranties for commercial and c) Financing revenues - Interest income from financing
passenger vehicles, software support services and transactions includes income from leasing of vehicles
insurance broking services. to customers. Finance and service charges are accrued
on the unpaid principal balance of finance receivables
Income from sale of maintenance services, telematics
using the effective interest method.
features and extended warranties, including software
services are recognized as income over the relevant h. Government grants and incentives
period of service or extended warranty. Other income includes export and other recurring and
non-recurring incentives from Government (referred as
When the Company sells products that are bundled
“incentives”).
with maintenance service, telematics features or
extended period of warranty, such services are Government grants are recognised when there is reasonable
treated as a separate performance obligation only if assurance that the Company will comply with the relevant
the service or warranty is optional to the customer conditions and the grant will be received.
or includes an additional service component. In such
Government grants are recognised in the consolidated
cases, the transaction price allocated towards such
statement of profit and loss, either on a systematic basis when
maintenance service or extended period of warranty
the Company recognizes, as expenses, the related costs
is recognized as a contract liability until the service
that the grants are intended to compensate or, immediately
obligation has been met.
if the costs have already been incurred. Government grants
The Company operates certain customer loyalty related to assets are deferred and amortised over the useful
programs under which customer is entitled to reward life of the asset. Government grants related to income are
points on the spend towards Company’s products. The presented as an offset against the related expenditure, and
reward points earned by customers can be redeemed to government grants that are awarded as incentives with
claim discounts on future purchase of certain products no ongoing performance obligations to the Company are
or services. Transaction price allocated towards recognised as income in the period in which the grant is
received.

Consolidated
i. Cost recognition and the Company sells the finished goods using the
Costs and expenses are recognised when incurred and are components at a loss.
classified according to their nature. iii) Residual risk
Expenditure are capitalised, where appropriate, in In certain markets, the Company is responsible for the
accordance with the policy for internally generated residual risk arising on vehicles sold by dealers under
intangible assets and represents employee costs, stores and leasing arrangements. The provision is based on the
other manufacturing supplies, and other expenses incurred latest available market expectations of future residual
for construction and product development undertaken by value trends. The timing of the outflows will be at the
the Company. end of the lease arrangements being typically up to
three years.
Material and other cost of sales as reported in the
consolidated statement of profit and loss is presented The potential effects of the COVID-19 pandemic,
net of the impact of realised foreign exchange relating to particularly the estimated decline and subsequent
derivatives hedging cost exposures. recovery in the used vehicle market, were included
in the Company’s methodology applied in estimating
j. Provisions the residual value exposure for the year ended March
A provision is recognised if, as a result of a past event, the 31, 2021. These assessments were performed with
Company has a present legal or constructive obligation that reference to both internal and external market inputs.
can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation. iv) Legal and product liability
When the effect of the time value of money is material, Legal and product liability provision is recorded in
provisions are determined by discounting the expected respect of compliance with regulations and known
future cash flows using a pre-tax rate that reflects current litigations which impact the Company. The product
market assessments of the time value of money and the liability claim primarily relates to motor accident
risks specific to the liability. claims, consumer complaints, dealer terminations,
personal injury claims and compliance with emission
i) Product warranty expenses and battery disposal regulations.
The estimated liability for product warranties are
recognized when products are sold or when new The timing of outflows will vary depending on when
warranty programmes are initiated. These estimates claims are received and settled, which is not known
are established using historical information on the with certainty. The assumptions made, especially the
nature, frequency and average cost of warranty assumption about the outcome of legal proceedings,
claims and management estimates regarding possible are subject to a high degree of uncertainty. The
future warranty claims, customer goodwill and recall appropriateness of assumptions is regularly
complaints The timing of outflows will vary depending reviewed, based on assessments undertaken both by
on when warranty claim will arise, being typically up to management and external experts, such as lawyers.
six years and for batteries in Electric Vehicles warranty If new developments arise in the future that result
period is typically up to eight years. The Company also in a different assessment, provisions are adjusted
has back-to-back contractual arrangement with its accordingly.
suppliers in the event that a vehicle fault is proven to v) Environmental liability
be a supplier’s fault. Environmental liability relates to various
Estimates are made of the expected reimbursement environmental remediation cost such as asbestos
claim based upon historical levels of recoveries from removal and land clean up. The timing of when these
supplier, adjusted for inflation and applied to the costs will be incurred is not known with certainty.
population of vehicles under warranty as on balance k. Foreign currency
sheet date. Supplier reimbursements are recognised These consolidated financial statements are presented
as a separate asset. in Indian rupees, which is the functional currency of Tata
ii) Provision for onerous obligations Motors Limited. Transactions in foreign currencies are
A provision for onerous contracts is recognized when recorded at the exchange rate prevailing on the date of
the expected benefits to be derived by the Company transaction. Foreign currency denominated monetary assets
from a contract are lower than the unavoidable and liabilities are re-measured into the functional currency
costs of meeting its obligations under the contract. at the exchange rate prevailing on the balance sheet date.
It is recognized when the Company has entered Exchange differences are recognised in the consolidated
into a binding legal agreement for the purchase of statement of profit and loss except to the extent, exchange
components from suppliers that exceeds the benefits differences on foreign currency borrowings which are
from the expected future use of the components capitalized when they are regarded as an adjustment to
interest costs.

For the purpose of presenting consolidated financial are not recognised if the Company is able to control the
statements, the assets and liabilities of the Company’s timing of the reversal and it is probable that the temporary
foreign operations (having non-INR functional currency) are difference will not reverse in the foreseeable future.
translated to Indian rupees at the exchange rate prevailing
m. Cash & cash equivalents
on the balance sheet date, Income and expenses items are
Cash and cash equivalents comprises cash on hand, demand
translated at the average rate of exchange for the respective
deposits and highly liquid investments with an original
months. Exchange differences arising on such translation
maturity of up to three months that are readily convertible
are recognised as currency translation reserve under
into cash and which are subject to an insignificant risk of
equity. Exchange differences arising from the translation
changes in value.
of a foreign operation previously recognised in currency
translation reserve in equity are not reclassified from equity n. Earnings per share
to the consolidated profit or loss until the disposal of the Basic earnings per share has been computed by dividing
operation. profit for the year by the weighted average number of shares
outstanding during the year. Partly paid-up shares are
l. Income taxes
included as fully paid equivalents according to the fraction
Income tax expense comprises current and deferred taxes.
paid up. Diluted earnings per share has been computed
Income tax expense is recognised in the consolidated
using the weighted average number of shares and dilutive
statement of profit and loss except when they relate to
potential shares, except where the result would be anti-
items that are recognised outside of profit or loss (whether
dilutive.
in other comprehensive income or directly in equity), in
which case tax is also recognised outside profit or loss, or o. Inventories
where they arise from the initial accounting for a business Inventories (other than those recognised consequent to
combination. In the case of a business combination the the sale of vehicles subject to repurchase arrangements)
tax effect is included in the accounting for the business are valued at the lower of cost and net realisable value.
combination. Current income taxes are determined based Cost of raw materials, components and consumables are
on respective taxable income of each taxable entity and tax ascertained on a first in first out basis. Cost, including fixed
rules applicable for respective tax jurisdictions. and variable production overheads, are allocated to work-in-
progress and finished goods determined on a full absorption
Deferred tax assets and liabilities are recognised for
cost basis. Net realisable value is the estimated selling
the future tax consequences of temporary differences
price in the ordinary course of business less estimated
between the carrying values of assets and liabilities and
cost of completion and selling expenses. Inventories
their respective tax bases, and unutilised business loss and
include vehicles sold subject to repurchase arrangements.
depreciation carry-forwards and tax credits. Such deferred
These vehicles are carried at cost to the Company and are
tax assets and liabilities are computed separately for each
amortised in changes in inventories of finished goods to
taxable entity and for each taxable jurisdiction. Deferred tax
their residual values (i.e., estimated second hand sale value)
assets are recognised to the extent it is probable that future
over the term of the arrangement.
taxable income will be available against which the deductible
temporary differences, unused tax losses, depreciation p. Property, plant and equipment
carry forwards and unused tax credits could be utilised. The Property, plant and equipment are stated at cost of
carrying amount of deferred tax assets is reviewed at each acquisition or construction less accumulated depreciation
reporting date and reduced to the extent that it is no longer and accumulated impairment, if any. Freehold land is
probable that sufficient taxable profits will be available to measured at cost and is not depreciated. Heritage assets,
allow all or part of the asset to be recovered. comprising antique vehicles purchased by the Company,
are not depreciated as they are considered to have a
Deferred tax assets and liabilities are measured based on
residual value in excess of cost. Residual values are re-
the tax rates that are expected to apply in the period when
assessed on an annual basis. Cost includes purchase price,
the asset is realised or the liability is settled, based on the tax
non-recoverable taxes and duties, labour cost and direct
rates and tax laws that have been enacted or substantively
overheads for self-constructed assets and other direct costs
enacted by the balance sheet date. Current and deferred
incurred up to the date the asset is ready for its intended
tax assets and liabilities are offset when there is a legally
use.
enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied Interest cost incurred for constructed assets is capitalised
by the same taxation authority and the Company intends to up to the date the asset is ready for its intended use, based
settle its current tax assets and liabilities on a net basis. on borrowings incurred specifically for financing the asset
or the weighted average rate of all other borrowings, if
Deferred tax liabilities on taxable temporary differences
no specific borrowings have been incurred for the asset.
arising from investments in subsidiaries, branches and
Depreciation is provided on the Straight-Line Method (SLM)
associated companies and interests in joint arrangements

Consolidated
over the estimated useful lives of the assets considering Internally generated intangible asset
the nature, estimated usage, operating conditions, past Research costs are charged to the consolidated statement
history of replacement, anticipated technological changes, of profit and loss in the year in which they are incurred.
manufacturer’s warranties and maintenance support. Taking Product development costs incurred on new vehicle
into account these factors, the Company and its domestic platform, engines, transmission and new products are
group companies have decided to retain the useful life recognised as intangible assets, when feasibility has
hitherto adopted for various categories of property, plant been established, the Company has committed technical,
and equipment, which are different from those prescribed in financial and other resources to complete the development
Schedule II of the Act. and it is probable that asset will generate probable future
Estimated useful lives of the assets are as follows: economic benefits. The costs capitalised include the cost of
materials, direct labour and directly attributable overhead
Type of Asset Estimated useful life expenditure incurred up to the date the asset is available
Buildings, Roads, Bridge and culverts 4 to 60 years for use. Interest cost incurred is capitalised up to the date
Plant, machinery and equipment 3 to 30 years the asset is ready for its intended use, based on borrowings
incurred specifically for financing the asset or the weighted
Computers and other IT assets 3 to 6 years
average rate of all other borrowings if no specific borrowings
Vehicles 3 to 11 years have been incurred for the asset. Product development
Furniture, fixtures and office 3 to 21 years costs is amortised on a straight-line basis over a period of 24
appliances months to 120 months. Product development expenditure
is measured at cost less accumulated amortisation and
The useful lives and method of deprecation is reviewed at
accumulated impairment, if any.
least at each year-end. Changes in expected useful lives are
treated as change in accounting estimates. r. Leases
At inception of a contract, the Company assesses whether
Depreciation is not recorded on capital work-in-progress
a contract is, or contain a lease. A contract is,or contains,
until construction and installation are complete and the
a lease if the contract conveys the right to control the use
asset is ready for its intended use.
of an identified asset for a period of time in exchange for
An item of property, plant and equipment is derecognized on consideration. To assess whether a contract conveys the
disposal. Any gain or loss arising from derecognition of an right to control the use of an identified asset, the Company
item of property, plant and equipment is included in profit or assesses whether:
loss when it is derecognized.
• The contract involves the use of an identified asset –
q. Other intangible assets this may be specified explicitly or implicitly, and should
Intangible assets purchased, including those acquired in be physically distinct or represent substantially all of
business combinations, are measured at cost or fair value as the capacity of a physically distinct asset. If the supplier
of the date of acquisition where applicable less accumulated has a substantive substation right, then the asset is not
amortisation and accumulated impairment, if any. Intangible identified;
assets with indefinite lives are reviewed annually to
• The Company has the right to substantially all of the
determine whether an indefinite-life assessment continues
economic benefits from the use of the asset throughout
to be supportable. If not, the change in the useful-life
the period of use; and
assessment from indefinite to finite is made on a prospective
basis. • The Company has the right to direct the use of the asset.
The Company has this right when it has the decision
For intangible assets with finite lives, amortization is
making rights that are most relevant to changing how and
provided on a straight-line basis over the estimated useful
for what purposes the asset is used.
lives of the acquired intangible assets as per the estimated
amortization period below • In rare cases where the decision about how and for what
purpose the asset is used is predetermined, the Company
Type of Asset Estimated useful life has the right to direct the use of the asset if either:
Patents and technological 2 to 12 years
knowhow • The Company has the right to operate the asset; or
Computer software 1 to 8 years • The Company designed the asset in a way that
Customer related intangibles 20 years predetermines how and for what purposes it will be used.
- dealer network At inception or on reassessment of a contract that contains a
Intellectual property rights 3 to 10 years lease component, the Company allocates the consideration
in the contract to each lease component on the basis of
The amortisation period for intangible assets with finite
their relative stand-alone prices. The Company recognises
useful lives is reviewed at least at each year-end. Changes in
a right-of-use asset and a lease liability at the lease
expected useful lives are treated as changes in accounting
commencement date. The right- of-use asset is initially
estimates.
measured at cost, which comprises of the initial amount of

the lease liability adjusted for any lease payments made other assets of the unit pro rata on the basis of carrying
at or before the commencement date, plus any initial direct amount of each asset in the unit. Goodwill impairment
costs incurred and an estimate of costs to dismantle and loss recognised is not reversed in subsequent period.
remove the underlying asset or to restore the underlying
ii) Property, plant and equipment and other
asset or the site on which it is allocated, less any lease
intangible assets
incentives received. The right-of-use asset is subsequently
At each balance sheet date, the Company assesses
amortised using the straight-line method over the shorter of
whether there is any indication that any property,
the useful life of the leased asset or the period of lease. If
plant and equipment and intangible assets with finite
ownership of the leased asset is automatically transferred
lives may be impaired. If any such impairment exists
at the end of the lease term or the exercise of a purchase
the recoverable amount of an asset is estimated to
option is reflected in the lease payments, the right-of-use
determine the extent of impairment, if any. Where it
asset is amortised on a straight line basis over the expected
is not possible to estimate the recoverable amount
useful life of the leased asset.
of an individual asset, the Company estimates the
The lease liability is initially measured at the present value recoverable amount of the cash-generating unit to
of the lease payments that are not paid at commencement which the asset belongs.
date, discounted using the interest rate implicit in the lease
Intangible assets with indefinite useful lives and
or, if that rate cannot be readily determined, the Company’s
intangible assets not yet available for use, are tested
incremental borrowing rate. Generally, the Company uses
for impairment annually at each balance sheet date, or
its incremental borrowing rate as a discount rate. The lease
earlier, if there is an indication that the asset may be
liability is measured at amortised cost using the effective
impaired.
interest method. It is re measured when there is a change in
future lease payments. iii) Equity accounted investments: Joint ventures
and associates:
Lease payments include fixed payments, i.e., amounts
When necessary, the entire carrying amount of
expected to be payable by the Company under residual
the investment (including goodwill) is tested for
value guarantee, the exercise price of a purchase option, if
impairment as a single asset by comparing its
the Company is reasonably certain to exercise that option
recoverable amount with its carrying amount. Any
and payment of penalties for terminating the lease, if the
impairment loss recognised forms part of the carrying
lease term considered reflects that the Company shall
amount of the investment. Any reversal of that
exercise termination option. The Company also recognises
impairment loss is recognised to the extent that the
a right of use asset, which comprises of amount of initial
recoverable amount of the investment subsequently
measurement of the lease liability, any initial direct cost
increases.
incurred by the Company and estimated dilapidation costs.
Recoverable amount is the higher of fair value less
Payment made towards short term leases (leases for which
costs to sell and value in use. In assessing value in
non-cancellable term is 12 months or lesser) and low value
use, the estimated future cash flows are discounted to
assets (lease of assets worth less than ` 0.03 crore) are
their present value using a pre-tax discount rate that
recognised in the Consolidated statement of Profit and loss
reflects current market assessments of the time value
as rental expenses over the tenor of such leases.
of money and the risks specific to the asset (or cash
Assets given on lease generating unit) for which the estimates of future cash
There are certain vehicles which are being given to the flows have not been adjusted. Cash flow projections
customers along with operations and maintenance of the are developed generally for five years using data
same. These are accounted as finance lease as the material from the Company’s latest internal forecasts and
risks and rewards are transferred to the lessee. Accordingly, extrapolated beyond five years using estimated long-
lease receivable is recognized as the amount of the fair term growth rates.
value of the leased asset.
If the recoverable amount of an asset (or cash
s. Impairment generating unit) is estimated to be less than its
i) Goodwill carrying amount, the carrying amount of the asset (or
Cash generating units to which goodwill is allocated cash-generating unit) is reduced to its recoverable
are tested for impairment annually at each balance amount. An impairment loss is recognised immediately
sheet date, or more frequently when there is an in the consolidated statement of profit and loss.
indication that the unit may be impaired. If the
An asset or cash-generating unit impaired in prior
recoverable amount of the cash generating unit is less
years is reviewed at each balance sheet date to
than the carrying amount of the unit, the impairment
determine whether there is any indication of a reversal
loss is allocated first to reduce the carrying amount
of impairment loss recognized in prior years.
of any goodwill allocated to that unit and then to the

Consolidated
t. Employee benefits by this plan are prospectively entitled to benefits

i) Pension plans computed on a basis that ensures that the annual cost
Jaguar Land Rover operate defined benefit pension of providing the pension benefits would not exceed
plans for certain of its subsidiaries, which are 15% of salary. During the year ended March 31, 2015,
contracted out of the second state pension scheme the employees covered by this plan were given a
until April 5, 2016. The assets of the plan are held one-time option to exit from the plan prospectively.
in separate trustee administered funds. The plans Furthermore, the employees who opted for exit were
provide for monthly pension after retirement as per given one- time option to withdraw accumulated
salary drawn and service period as set out in rules of balances from the superannuation plan. Separate
each fund. irrevocable trusts are maintained for employees
covered and entitled to benefits. Tata Motors Limited
Contributions to the plans by the Jaguar Land Rover and its subsidiaries contribute up to 15% or `150,000,
subsidiaries take into consideration the results of whichever is lower, of the eligible employees’ salary to
actuarial valuations. The plans with a surplus position the trust every year. Such contributions are recognised
at the year-end have been limited to the maximum as an expense when incurred. Tata Motors Limited and
economic benefit available from unconditional such subsidiaries have no further obligation beyond
rights to refund from the scheme or reduction in this contribution.
future contributions. Where the subsidiary group is
considered to have a contractual obligation to fund iv) Bhavishya Kalyan Yojana (BKY)
the pension plan above the accounting value of the Bhavishya Kalyan Yojana is an unfunded defined
liabilities, an onerous obligation is recognised. A benefit plan for employees of Tata Motors Limited
separate defined contribution plan is available to and some of its subsidiaries. The benefits of the plan
employees of Jaguar Land Rover. Costs in respect of include pension in certain cases, payable up to the date
this plan are charged to the consolidated statement of of normal superannuation had the employee been in
profit and loss as incurred. service, to an eligible employee at the time of death
or permanent disablement, while in service, either as
ii) Gratuity a result of an injury or as certified by the appropriate
Tata Motors Limited and its subsidiaries and joint authority. The monthly payment to dependents of
operations in India have an obligation towards the deceased/disabled employee under the plan
gratuity, a defined benefit retirement plan covering equals 50% of the salary drawn at the time of death or
eligible employees. The plan provides for a lump sum accident or a specified amount, whichever is greater.
payment to vested employees at retirement, death Tata Motors Limited and these subsidiaries account
while in employment or on termination of employment for the liability for BKY benefits payable in the future
of an amount equivalent to 15 to 30 days salary based on an actuarial valuation.
payable for each completed year of service. Vesting
occurs upon completion of five years of service. Tata v) Provident fund and family pension
Motors Limited and such subsidiaries make annual In accordance with Indian law, eligible employees
contributions to gratuity funds established as trusts of Tata Motors Limited and some of its subsidiaries
or insurance companies. Tata Motors Limited and and joint operations are entitled to receive benefits
its subsidiaries in India account for the liability for in respect of provident fund, a defined contributions
gratuity benefits payable in the future based on an plan, in which both employees and the Company
actuarial valuation. make monthly contributions at a specified percentage
of the covered employees’ salary (currently 12% of
iii) Superannuation employees’ salary). The contributions, as specified
Tata Motors Limited and some of its subsidiaries under the law, are made to the provident fund and
in India have two superannuation plans, a defined pension fund set up as an irrevocable trust by Tata
benefit plan and a defined contribution plan. An Motors Limited and its subsidiaries or to respective
eligible employee as on April 1, 1996 could elect to be Regional Provident Fund Commissioner and the
a member of either plan. Employees who are members Central Provident Fund under the State Pension
of the defined benefit superannuation plan are entitled scheme. The interest rate payable to the members of
to benefits depending on the years of service and the trust shall not be lower than the statutory rate of
salary drawn. The monthly pension benefits after interest declared by the Central Government under
retirement range from 0.75% to 2% of the annual basic the Employees Provident Funds and Miscellaneous
salary for each year of service. Tata Motors Limited Provisions Act, 1952 and shortfall, if any, shall be
and such subsidiaries account for superannuation made good by the Company. The embedded interest
benefits payable in future under the plan based on an rate guarantee is considered to be defined benefit.
actuarial valuation.
Given the investment pattern prescribed by the
With effect from April 1, 2003, this plan was amended authorities, most investments of provident fund has
and benefits earned by covered employees have been historically been in debt securities, thereby giving
protected as at March 31, 2003. Employees covered

secure returns. However, during the year ended March The present value of the post-employment benefit
31, 2020, due to a ratings downgrade and potential obligations depends on a number of factors, it is
bond default of some of the companies, the total determined on an actuarial basis using a number of
liability of principal and interest guarantee has since assumptions. The assumptions used in determining
been actuarially valued as a defined benefit. the net cost/(income) for pensions include the discount
rate, inflation and mortality assumptions. Any changes
vi) Severance indemnity
in these assumptions will impact upon the carrying
Tata Daewoo Commercial Vehicle Company Limited,
amount of post-employment benefit obligations. Key
or TDCV, a subsidiary company incorporated in Korea;
assumptions and sensitivities for postemployment
has an obligation towards severance indemnity, a
benefit obligations are disclosed in note 36.
defined benefit retirement plan, covering eligible
employees. The plan provides for a lump sum u. Dividends
payment to all employees with more than one year of Any dividend declared by Tata Motors Limited is based
employment equivalent to 30 days’ salary payable for on the profits available for distribution as reported in the
each completed year of service. statutory financial statements of Tata Motors Limited
(standalone) prepared in accordance with Generally
vii) Post-retirement medicare scheme
Accepted Accounting Principles in India or Indian GAAP or
Under this unfunded scheme, employees of Tata
Ind AS. Indian law permits the declaration and payment
Motors Limited and some of its subsidiaries receive
of dividend out of profits for the year or previous financial
medical benefits subject to certain limits on amounts
year(s) as stated in the statutory financial statements of
of benefits, periods after retirement and types of
Tata Motors Limited (Standalone) prepared in accordance
benefits, depending on their grade and location at the
with Generally Accepted Accounting Principles in India, or
time of retirement. Employees separated from the
Ind AS after providing for depreciation in accordance with
Company as part of an Early Separation Scheme, on
the provisions of Schedule II to the Companies Act.
medical grounds or due to permanent disablement are
also covered under the scheme. However, in the absence or inadequacy of the said profits, it
may declare dividend out of free reserves, subject to certain
Tata Motors Limited and such subsidiaries account for
conditions as prescribed under the Companies (Declaration
the liability for post-retirement medical scheme based
and Payment of Dividend) Rules, 2014. Accordingly, in
on an actuarial valuation.
certain years the net income reported in these financial
viii) Compensated absences statements may not be fully distributable. The amount
Tata Motors Limited and some of its subsidiaries and available for distribution is `Nil as at March 31, 2021 (` Nil
joint operations provide for the encashment of leave or as at March 31, 2020).
leave with pay subject to certain rules. The employees
v. Segments
are entitled to accumulate leave subject to certain
The Company primarily operates in the automotive business.
limits, for future encashment. The liability is provided
The automotive business comprises of four reportable
based on the number of days of unutilised leave at
segments i.e., Tata Commercial Vehicles, Tata Passenger
each balance sheet date on the basis of an actuarial
Vehicles, Jaguar Land Rover and Vehicle Financing. Other
valuation.
operating segments do not meet the quantitative thresholds
ix) Remeasurement gains and losses for disclosure and have been aggregated.
Remeasurement comprising actuarial gains and
w. Financial instruments
losses, the effect of the asset ceiling and the return
i) Recognition
on assets (excluding interest) relating to retirement
A financial instrument is any contract that gives rise to
benefit plans, are recognised directly in other
a financial asset of one entity and a financial liability
comprehensive income in the period in which they arise.
or equity instrument of another entity. Financial
Remeasurement recorded in other comprehensive
instruments are recognised on the balance sheet
income is not reclassified to consolidated statement
when the Company becomes a party to the contractual
of profit and loss. Actuarial gains and losses relating
provisions of the instrument.
to long-term employee benefits are recognised in the
consolidated statement of profit and loss in the period Initial measurement
in which they arise. Initially, a financial instrument is recognised at its
fair value. Transaction costs directly attributable to
x) Measurement date
the acquisition or issue of financial instruments are
The measurement date of retirement plans is March
recognised in determining the carrying amount, if it
31.
is not classified as at fair value through profit or loss.
The present value of the defined benefit liability and Transaction costs of financial instruments carried at
the related current service cost and past service cost fair value through profit or loss are expensed in profit
are measured using projected unit credit method. or loss.

Consolidated
Subsequently, financial instruments are measured Derivatives which are not designated as hedging instruments
according to the category in which they are classified. are recognized at fair value through profit or loss.
Classification and measurement – financial assets Classification and measurement – financial liabilities:
Financial liabilities are classified as subsequently measured
Classification of financial assets is based on the business
at amortised cost unless they meet the specific criteria to be
model in which the instruments are held as well as the
recognised at fair value through profit or loss.
characteristics of their contractual cash flows. The business
model is based on management’s intentions and past pattern Other financial liabilities are measured at amortised cost
of transactions. Financial assets with embedded derivatives using the effective interest method. Subsequent to initial
are considered in there entirety when determining whether recognition, these are measured at fair value with gains or
there cash flows are solely payment of principal and losses being recognised in profit or loss.
interest. The Company reclassifies financial assets when
Financial guarantee contracts: These are initially measured
and only when its business model for managing those
at their fair values and, are subsequently measured at the
assets changes.
higher of the amount of loss allowance determined or the
Financial assets are classified into three categories amount initially recognized less, the cumulative amount of
income recognized.
Financial assets at amortised cost: Financial assets having
contractual terms that give rise on specified dates to cash Equity instruments: An equity instrument is any contract that
flows that are solely payments of principal and interest on evidences residual interests in the assets of the Company
the principal outstanding and that are held within a business after deducting all of its liabilities. Equity instruments issued
model whose objective is to hold such assets in order to by the Company are recorded at the proceeds received, net
collect such contractual cash flows are classified in this of direct issue costs.
category. Subsequently, these are measured at amortised
ii) Determination of fair value
cost using the effective interest method less any impairment
Fair value is the price that would be received to sell
losses.
an asset or paid to transfer a liability in an orderly
Equity investments at fair value through other transaction between market participants at the
comprehensive income (Equity instruments): These measurement date, regardless of whether that price
include financial assets that are equity instruments and is directly observable or estimated using another
are designated as such upon initial recognition irrevocably. valuation technique.
Subsequently, these are measured at fair value and changes
The fair value of a financial instrument on initial
therein, are recognised directly in other comprehensive
recognition is normally the transaction price (fair
income, net of applicable deferred income taxes. Dividends
value of the consideration given or received).
from these equity investments are recognised in the
consolidated statement of profit and loss when the right In estimating the fair value of an asset or liability, the
to receive payment has been established. When the equity Company takes into account the characteristics of
investment is derecognised, the cumulative gain or loss in the asset or liability if market participants would take
equity is transferred to retained earnings. those characteristics into account when pricing the
asset or liability at the measurement date.
Financial assets at fair value through other comprehensive
income (Debt instruments): Financial assets having Subsequent to initial recognition, the Company
contractual terms that give rise on specified dates, to cash determines the fair value of financial instruments that
flows that are solely payments of principal and interest on are quoted in active markets using the quoted bid prices
the principal outstanding and that are held within a business (financial assets held) or quoted ask prices (financial
model whose objective is to hold such assets in order to liabilities held) and using valuation techniques for
collect such contractual cash flows as well as to sell the other instruments. Valuation techniques include
financial asset, are classified in this category. Subsequently, discounted cash flow method and other valuation
these are measured at fair value, with unrealised gains or methods.
losses being recognised in other comprehensive income
iii) Derecognition of financial assets and financial
apart from any expected credit losses or foreign exchange
liabilities
gains or losses, which are recognised in profit or loss.
The Company derecognizes a financial asset only
Financial assets at fair value through profit or loss: when the contractual rights to the cash flows from
Financial assets are measured at fair value through profit or the asset expires or it transfers the financial asset and
loss unless it is measured at amortised cost or at fair value substantially all the risks and rewards of ownership
through other comprehensive income on initial recognition. of the asset to another entity. If the Company neither
The transaction costs directly attributable to the acquisition transfers nor retains substantially all the risks and
of financial assets and liabilities at fair value through profit rewards of ownership and continues to control
or loss are immediately recognised in profit or loss. the transferred asset, the Company recognizes its

retained interest in the asset and an associated liability loss is reversed. The reversal is recognised in the
for amounts it may have to pay. If the Company retains consolidated statement of profit and loss.
substantially all the risks and rewards of ownership of
The Company adopts the simplified approach
a transferred financial asset, the Company continues
permitted in Ind AS 109 to apply lifetime expected
to recognize the financial asset and also recognizes
credit losses to trade receivables and contract assets.
a collateralised borrowing for the proceeds received.
Where credit risk is deemed low at the reporting date
Any gain or loss arising on derecognition is recognised
or to have not increased significantly, credit losses for
in profit or loss. When a financial instrument is
the next 12 months are calculated.
derecognised, the cumulative gain or loss in equity is
transferred to the consolidated statement of profit and v) Hedge accounting
loss unless it was an equity instrument electively held The Company uses foreign currency forward and
at fair value through other comprehensive income. option contracts to hedge its risks associated with
In this case, any cumulative gain or loss in equity is foreign currency fluctuations relating to highly
transferred to retained earnings. Financial assets are probable forecast transactions. The Company
written off when there is no reasonable expectation designates these forward and option contracts in a
of recovery. The Company reviews the facts and cash flow hedging relationship by applying the hedge
circumstances around each asset before making a accounting principles.
determination. Financial assets that are written off
The Company also uses interest rate swaps to hedge
could still be subject to enforcement activities.
Financial liabilities are derecognised when these are arising from floating rate liabilities i.e., when interests
extinguished, that is when the obligation is discharged, are paid according to benchmark market interest rates.
cancelled or has expired.
Derivative contracts are stated at fair value on the
iv) Impairment of financial assets consolidated balance sheet at each reporting date.
The Company recognizes a loss allowance for
At inception of the hedge relationship, the Company
expected credit losses on a financial asset that
documents the economic relationship between the
is at amortised cost or at fair value through other
hedging instrument and the hedged item, including
comprehensive income. Expected credit losses are
whether changes in the cash flows of the hedging
forward looking and are measured in a way that is
instrument are expected to offset changes in the cash
unbiased and represents a probability-weighted
flows of the hedged item. The Company documents
amount, takes into account the time value of money
its risk management objective and strategy for
(values are discounted using the applicable effective
undertaking its hedging transactions. The Company
interest rate) and uses reasonable and supportable
designates only the intrinsic value of foreign exchange
information Loss allowance for finance receivables
options in the hedging relationship. The Company
is measured at an amount equal to twelve month
designates amounts excluding foreign currency basis
expected losses if credit risk on such assets has not
spread in the hedging relationship for both foreign
increased significantly since initial recognition. An
exchange forward contracts and cross-currency
allowance equal to lifetime expected losses is provided
interest rate swaps. Changes in the fair value of the
if credit risk has increased significantly from the date
derivative contracts that are designated and effective
of initial recognition or where the financial assets were
as hedges of future cash flows are recognised in the
deemed credit impaired at initial recognition. Credit
cash flow hedge reserve within other comprehensive
risk is determined to have increased significantly when
income (net of tax), and any ineffective portion is
a finance receivable contract becomes sixty/ninety
recognised immediately in the consolidated statement
days past due. Such impairment loss is recognised in
of profit and loss.
the consolidated statement of profit and loss. Such
increases in credit risk are relative and assessment Amounts accumulated in equity are reclassified to
may include external ratings (where available) or other the consolidated statement of profit and loss in the
information such as past due payments. Historic data periods in which the forecasted transaction occurs.
and forward-looking information are both considered. For forwards and options, forward premium and the
Objective evidence for a significant increase in credit time value are not considered part of the hedge.
risk may include where payment is overdue by sixty/
These are treated as cost of hedge and the changes in
ninety or more days as well as other information about
fair value attributable to time value is recognised in the
significant financial difficulties of the borrower.
other comprehensive income along with the changes
If the amount of an impairment loss decreases in a in fair value determined to be effective portion of
subsequent period, and the decrease can be related the hedge. For hedges of forecast transactions, time
objectively to an event occurring after the impairment value of options and forward element on forward
was recognised, the previously recognised impairment contracts are considered as cost of transaction related

Consolidated
hedge and accordingly any changes in their fair value x. Recent accounting pronouncements
is recognized in other comprehensive income and i) Amendments issued by MCA to existing standards
subsequently reclassified to consolidated statement
of profit and loss when the forecast transaction On July 24, 2020, the Ministry of Corporate Affairs has
affects the consolidated statement of profit and loss made following changes applicable from the financial
or recognized in the carrying value of asset when the year beginning April 1, 2020
forecasted transaction is for purchase of an asset. a) Revised the definition of the term “business” and
Effective portion of fair value changes in forward related guidance in Ind AS 103. The amendment
contracts and options designated as hedges against permits a simplified assessment of whether
foreign currency fluctuations arising on certain an acquired set of activities and assets is not a
liabilities denominated in foreign currency are business.
recognized in other comprehensive income and b) Amended some specific hedge accounting
reclassified to consolidated statement of profit requirements under Ind AS 109 (temporary
and loss when the underlying liabilities affect the exceptions from applying specific hedge
consolidated statement of profit and loss. The time accounting requirements) and disclosure
value of options and forward element of forward requirements under Ind AS 107 to provide relief
contracts designated as hedges of underlying foreign to the potential effects of uncertainty caused
currency liabilities are considered as cost of time by the Interest rate Benchmark reforms (IBOR
period related hedged item and accordingly amortized reforms).
and recognized in the consolidated statement of profit
and loss over the tenure of the contract. c) Amended Ind AS 116 to provide limited relief to
lessees in respect of rent concessions arising
The Company also uses interest rate swaps to hedge due to Covid-19 pandemic.
arising from floating rate liabilities i.e., when interests d) Refined the definition of the term ‘material’
are paid according to benchmark market interest rates. and related clarifications in Ind AS 1 and Ind
Effective portion of fair value changes on such interest AS 8. As per the amendment information is
rate swaps are recognized in other comprehensive material if omitting, misstating or obscuring
statement of profit and loss and accumulated in hedge it could reasonably be expected to influence
reserve and reclassified to consolidated statement the decisions that the primary users of general
of profit and loss when the hedged risk affects the purpose financial statements, which provide
consolidated statement of profit and loss. financial information about a specific reporting
entity. The amendments further clarified that the
Any ineffective portion of the fair value changes of information is obscured if it is communicated in a
hedging instruments are recognized in consolidated way that would have a similar effect for primary
statement of profit and loss. users of financial statements to omitting or
Hedge accounting is discontinued when the hedging misstating that information.
Instrument expires or is sold, terminated, or There were no significant impact on the Company’s
exercised, or no longer qualifies for hedge accounting. financial statements upon adoption of the above
Amounts accumulated in equity are reclassified to amendments issued by MCA.
the consolidated statement of profit and loss in the
periods in which the forecast transactions affect profit On March 24, 2021, the Ministry of Corporate Affairs
or loss or as an adjustment to a non-financial item (“MCA”) through a notification, amended Schedule III
(e.g., inventory) when that item is recognised on the of the Companies Act, 2013. The amendments revise
balance sheet. These deferred amounts are ultimately Division I, II and III of Schedule III and are applicable
recognised in profit or loss as the hedged item affects from April 1, 2021. Some of the key amendments
profit or loss (for example through cost of goods sold). relating to Division II which relate to companies whose
For forecast transactions, any cumulative gain or loss financial statements are required to comply with
on the hedging instrument recognised in equity is Companies (Indian Accounting Standards) Rules 2015
retained there until the forecast transaction occurs. are:
If the forecast transaction is no longer expected to a) Lease liabilities should be separately disclosed
occur, the net cumulative gain or loss recognised in under the head ‘financial liabilities’, duly
equity is immediately transferred to the consolidated distinguished as current or non-current.
statement of profit and loss for the year.

b) Certain additional disclosures in the statement • Repayable on demand or

of changes in equity such as changes in equity
• Without specifying any terms/ period of
share capital due to prior period errors and
repayment
restated balances at the beginning of the current
reporting period. j) Disclosure of prescribed ratios e.g. current
ratio, debt-equity ratio (Explain items included
c) Specified format for disclosure of shareholding
in numerator and denominator and any change
of promoters.
in the ratio >25% as compared to the preceding
d) Specified format for ageing schedule of year)
trade receivables, trade payables, capital
k) Disclosure of the following where borrowings
work-in-progress and intangible asset under
are made from banks/ FI on the basis of security
development.
of current assets:
e) If a company has not used funds for the specific
• Whether quarterly returns/ statements of
purpose for which it was borrowed from banks
current assets filed with banks/ FI are in
and financial institutions, then disclosure of
agreement with the books
details of where it has been used.
• Summary of reconciliation and reasons of
f) Specific disclosure under ‘additional regulatory
material discrepancies (if any)
requirement’ such as compliance with approved
schemes of arrangements, compliance with l) Additional disclosures relating to Corporate
number of layers of companies, title deeds Social Responsibility (CSR), undisclosed income
of immovable property not held in name of and crypto or virtual currency specified under
company, loans and advances to promoters, the head ‘additional information’ in the notes
directors, key managerial personnel (KMP) and forming part of financial statements.
related parties, details of benami property held
The Company is assessing the impact of these
etc.
changes and will accordingly incorporate the
g) Realignment of presentation of following same for the financial statements for the year
financial statement captions: ended March 31, 2022.
• Security deposits to be presented under ii) The conceptual framework for Financial Reporting
other financial assets (earlier: under under Ind AS sets out fundamental concepts for
loans) financial reporting that guide the Accounting Standard
Board (ASB) in developing Ind AS. It helps to ensure
• Current maturities of long-term
that the standards are conceptually consistent and
borrowings to be disclosed separately
that similar transactions are treated the same way, so
under borrowings (earlier: under other
as to provide useful information for investors, lenders
financial liabilities)
and creditors. In August 2020, ICAI issued the revised
h) Disclosure of charges/ satisfaction yet to be ‘Conceptual Framework for Financial Reporting under
registered with ROC beyond the statutory period Ind AS’ (Conceptual Framework). The applicability
along with details and reasons thereof date for the same is yet to be notified.
i) Prescribed disclosures where loans/ advances
in the nature of loans were granted to promoters,
directors, KMPs and the related parties (as
defined under 2013 Act), either severally or
jointly with any other person that are that are:

Consolidated
(y) The following subsidiary companies are considered in the consolidated financial statements:
% of holding either directly
Sr Country of or through subsidiaries
Name of the Subsidiary company
No. incorporation As at As at
March 31, 2021 March 31, 2020
Direct Subsidiaries
1 TML Business Services Limited India 100.00 100.00
2 Tata Motors Insurance Broking and Advisory Services Limited India 100.00 100.00
3 Tata Motors European Technical Centre PLC UK 100.00 100.00
4 Tata Technologies Limited India 74.42 72.48
5 TMF Holdings Limited India 100.00 100.00
6 Tata Marcopolo Motors Limited India 51.00 51.00
7 TML Holdings Pte. Limited Singapore 100.00 100.00
8 TML Distribution Company Limited India 100.00 100.00
9 Tata Hispano Motors Carrocera S.A. Spain 100.00 100.00
10 Tata Hispano Motors Carrocerries Maghreb SA Morocco 100.00 100.00
11 Trilix S.r.l. Italy 100.00 100.00
12 Tata Precision Industries Pte. Limited Singapore 78.39 78.39
13 Brabo Robotics and Automation Limited India 100.00 100.00
14 JT Special Vehicles Pvt. Limited (Ceased to be a JV and became a Wholly-owned India 100.00 -
Subsidiary, w.e.f. August 11, 2020)
Indirect subsidiaries *
15 TML Business Analytics Services Limited (Incorporated w.e.f. April 4, 2020) India 100.00 -
16 Tata Daewoo Commercial Vehicle Company Limited South Korea 100.00 100.00
17 Tata Daewoo Commercial Vehicle Sales and Distribution Company Limited South Korea 100.00 100.00
18 Tata Motors (Thailand) Limited Thailand 97.21 97.17
19 Tata Motors (SA) (Proprietary) Limited South Africa 60.00 60.00
20 PT Tata Motors Indonesia Indonesia 100.00 100.00
21 Tata Technologies (Thailand) Limited Thailand 74.42 72.48
22 Tata Technologies Pte Limited Singapore 74.42 72.48
23 INCAT International Plc. UK 74.42 72.48
24 Tata Technologies Europe Limited UK 74.42 72.48
25 Tata Technologies Nordics AB (Formally Known as Escenda Engineering AB) UK 74.42 72.48
26 INCAT GmbH. Germany 74.42 72.48
27 Tata Technologies Inc. USA 74.48 72.48
28 Tata Technologies de Mexico, S.A. de C.V. Mexico 74.48 72.48
29 Cambric Limited USA 74.48 72.48
30 Tata Technologies SRL Romania Romania 74.48 72.48
31 Tata Manufacturing Technologies (Shanghai) Limited China 74.42 72.48
32 Jaguar Land Rover Automotive Plc UK 100.00 100.00
33 Jaguar Land Rover Limited UK 100.00 100.00
34 Jaguar Land Rover Austria GmbH Austria 100.00 100.00
35 Jaguar Land Rover Belux NV Belgium 100.00 100.00
36 Jaguar Land Rover Japan Limited Japan 100.00 100.00
37 Jaguar Cars South Africa (Pty) Limited South Africa 100.00 100.00
38 JLR Nominee Company Limited UK 100.00 100.00
39 The Daimler Motor Company Limited UK 100.00 100.00
40 Daimler Transport Vehicles Limited UK 100.00 100.00


March 31, 2021 March 31, 2020
41 S.S. Cars Limited UK 100.00 100.00
42 The Lanchester Motor Company Limited UK 100.00 100.00
43 Jaguar Land Rover Deutschland GmbH Germany 100.00 100.00
44 Jaguar Land Rover Classic Deutschland GmbH Germany 100.00 100.00
45 Jaguar Land Rover Holdings Limited UK 100.00 100.00
46 Jaguar Land Rover North America LLC USA 100.00 100.00
47 Land Rover Ireland Limited Ireland 100.00 100.00
48 Jaguar Land Rover Nederland BV Netherlands 100.00 100.00
49 Jaguar Land Rover Portugal - Veiculos e Pecas, Lda. Portugal 100.00 100.00
50 Jaguar Land Rover Australia Pty Limited Australia 100.00 100.00
51 Jaguar Land Rover Italia Spa Italy 100.00 100.00
52 Jaguar Land Rover Espana SL Spain 100.00 100.00
53 Jaguar Land Rover Korea Company Limited South Korea 100.00 100.00
54 Jaguar Land Rover (China) Investment Co. Limited China 100.00 100.00
55 Jaguar Land Rover Canada ULC Canada 100.00 100.00
56 Jaguar Land Rover France, SAS France 100.00 100.00
57 Jaguar Land Rover (South Africa) (pty) Limited South Africa 100.00 100.00
58 Jaguar e Land Rover Brasil industria e Comercio de Veiculos LTDA Brazil 100.00 100.00
59 Limited Liability Company "Jaguar Land Rover" (Russia) Russia 100.00 100.00
60 Jaguar Land Rover (South Africa) Holdings Limited UK 100.00 100.00
61 Jaguar Land Rover India Limited India 100.00 100.00
62 Jaguar Cars Limited UK 100.00 100.00
63 Land Rover Exports Limited UK 100.00 100.00
64 Jaguar Land Rover Pension Trustees Limited UK 100.00 100.00
65 Jaguar Racing Limited UK 100.00 100.00
66 InMotion Ventures Limited UK 100.00 100.00
67 In-Car Ventures Limited ((Formerly known as Lenny Insurance Limited) UK 100.00 100.00
68 InMotion Ventures 2 Limited UK 100.00 100.00
69 InMotion Ventures 3 Limited UK 100.00 100.00
70 Shanghai Jaguar Land Rover Automotive Services Company Limited China 100.00 100.00
71 Jaguar Land Rover Slovakia s.r.o Slovakia 100.00 100.00
72 Jaguar Land Rover Singapore Pte. Ltd Singapore 100.00 100.00
73 Jaguar Land Rover Columbia S.A.S Columbia 100.00 100.00
74 PT Tata Motors Distribusi Indonesia Indonesia 100.00 100.00
75 Tata Motors Finance Solutions Limited India 100.00 100.00
76 Tata Motors Finance Limited India 100.00 100.00
77 TMNL Motor Services Nigeria Limited Nigeria 100.00 100.00
78 Jaguar Land Rover Ireland (Services) Limited Ireland 100.00 100.00
79 Spark44 (JV) Limited UK 50.50 50.50
80 Spark44 Pty. Ltd. Australia 50.50 50.50
81 Spark44 GMBH Germany 50.50 50.50
82 Spark44 LLC USA 50.50 50.50
83 Spark44 Shanghai Limited China 50.50 50.50
84 Spark44 DMCC UAE 50.50 50.50
85 Spark44 Demand Creation Partners Limited India 50.50 50.50

Consolidated

March 31, 2021 March 31, 2020
86 Spark44 Limited (London & Birmingham) UK 50.50 50.50
87 Spark44 Pte Ltd Singapore 50.50 50.50
88 Spark44 Communication SL Spain 50.50 50.50
89 Spark44 SRL Italy 50.50 50.50
90 Spark44 Seoul Limited Korea 50.50 50.50
91 Spark44 Japan KK Japan 50.50 50.50
92 Spark44 Canada Inc Canada 50.50 50.50
93 Spark44 South Africa (Pty) Limited South Africa 50.50 50.50
94 Spark44 Colombia S.A.S. Columbia 50.50 50.50
95 Spark44 Taiwan Limited Taiwan 50.50 50.50
96 Jaguar Land Rover Taiwan Company Limited Taiwan 100.00 100.00
97 Jaguar Land Rover Servicios Mexico,S.A. de C.V. Mexico 100.00 100.00
98 Jaguar Land Rover Mexico,S.A.P.I. de C.V. Mexico 100.00 100.00
99 Jaguar Land Rover Hungary KFT Hungary 100.00 100.00
100Jaguar Land Rover Classic USA LLC USA 100.00 100.00
101Jaguar Land Rover Ventures Limited UK 100.00 100.00
102Bowler Motors Limited UK 100.00 100.00
103Jaguar Land Rover (Ningbo) Trading Co. Limited China 100.00 100.00
*Effective holding % of the Company directly and through its subsidiaries.
The following Jointly controlled companies are considered in the consolidated financial statements:

Name of the jointly controlled company
March 31, 2021 March 31, 2020
Joint Operations
1 Fiat India Automobiles Private Limited India 50.00 50.00
2 Tata Cummins Private Limited India 50.00 50.00
Joint Ventures
3 Tata HAL Technologies Limited ** India 37.21 36.24
4 Chery Jaguar Land Rover Automotive Company Limited China 50.00 50.00
5 JT Special Vehicles Pvt. Limited (Ceased to be a JV and became a Wholly-owned India - 50.00
Subsidiary, w.e.f. August 11, 2020)
6 Loginomic Tech Solutions Private Limited (“TruckEasy”) India 26.00 26.00
7 Jaguar Land Rover Switzerland AG Switzerland 30.00 10.00
** Effective holding % of the Company as it is a Joint Venture of Tata Technologies Ltd

The following associates companies are considered in the consolidated financial statements:

Name of the associate company
March 31, 2021 March 31, 2020
1 Automobile Corporation of Goa Limited India 49.77 49.77

2 Nita Company Limited Bangladesh 40.00 40.00
3 Tata Hitachi Construction Machinery Company Private Limited India 39.99 39.99
4 Tata Precision Industries (India) Limited India 39.19 39.19
5 Tata AutoComp Systems Limited India 26.00 26.00
6 Jaguar Cars Finance Limited UK 49.90 49.90
7 Cloud Car Inc USA 26.30 26.30
8 Synaptiv Limited UK 37.50 37.50
9 DriveClubService Pte. Ltd. Singapore 25.07 25.07

282
|
3. (a) PROPERTY, PLANT AND EQUIPMENT
(` in crores)
Owned assets Given on lease Taken on lease
Property, plant and equipment Plant and Furniture Heritage Plant and Plant and Furniture
Land Buildings Vehicles Computers Land Buildings Vehicles Buildings Computers Total
equipment and fixtures Assets equipment equipment and fixtures
Cost as at April 1, 2020 7,401.49 26,661.69 122,979.80 1,757.39 498.40 2,717.94 376.22 23.50 33.96 5.16 116.40 - - - - 162,571.95
Additions 5.50 419.57 7,914.02 32.76 67.47 55.82 - - - - 58.81 - - - - 8,553.95
Additions through business acquisitions - - 0.07 0.23 0.30 0.09 - - - - - - - - - 0.69
Disposal/Adjustments (79.72) (74.94) (476.41) (74.37) (80.89) (154.47) (37.28) - - - (4.33) - - - - (982.41)
Currency translation differences 185.78 1,528.66 7,045.68 98.98 13.16 136.29 14.74 1.53 2.53 - - - - - - 9,027.35
Cost as at March 31, 2021 7,513.05 28,534.98 137,463.16 1,814.99 498.44 2,755.67 353.68 25.03 36.49 5.16 170.88 - - - - 179,171.53
Accumulated depreciation
- 5,502.00 76,027.00 1,093.04 257.71 1,619.34 167.09 - 3.55 4.12 15.27 - - - - 84,689.12
as at April 1, 2020
Depreciation for the period - 1,232.23 9,195.14 104.80 95.47 218.34 - - 0.16 - 26.82 - - - - 10,872.96
Reversal of Impairment loss (56.88) (468.83) (0.63) (1.65) (2.76) - - - - - (530.75)

Additions through business acquisitions - 0.03 0.03 0.04 0.04 - - - - - 0.14
Disposal/Adjustments - (43.98) (299.03) (63.08) (48.95) (144.23) - - - - (2.60) - - - - (601.87)
Writeoff/impairment of assets - 39.52 23.89 - - 0.45 - - - - - - - - - 63.86
Currency translation differences - 319.61 4,589.15 57.70 7.48 64.04 - - 0.04 - - - - - - 5,038.02
- 6,992.50 89,067.35 1,191.86 310.10 1,755.22 167.09 - 3.75 4.12 39.49 - - - - 99,531.48
Net carrying amount
7,513.05 21,542.48 48,395.81 623.13 188.34 1,000.45 186.59 25.03 32.74 1.04 131.39 - - - - 79,640.05
Cost as at April 1, 2019 7,286.26 22,840.87 109,223.07 1,621.42 387.31 2,335.10 372.77 22.86 33.28 5.16 62.75 97.38 192.34 4.31 186.15 144,671.03
Adjustment on initial application of
- (76.01) - - - - - - - - - (97.38) (192.34) (4.31) (186.15) (556.19)
Ind AS 116
Adjusted opening balance 7,286.26 22,764.86 109,223.07 1,621.42 387.31 2,335.10 372.77 22.86 33.28 5.16 62.75 - - - - 144,114.84
Additions 27.53 2,989.01 11,246.74 133.33 145.76 346.89 - - - - 64.79 - - - - 14,954.05
Additions through business acquisitions - 5.30 1.16 0.60 0.03 - - - - - - - - - - 7.09
Disposal/Adjustments - (19.47) (673.06) (46.65) (40.55) (29.48) (8.67) - (0.38) - (11.14) - - - - (829.40)
Currency translation differences 87.70 921.99 3,181.89 48.69 5.85 65.43 12.12 0.64 1.06 - - - - - - 4,325.37
Cost as at March 31, 2020 7,401.49 26,661.69 122,979.80 1,757.39 498.40 2,717.94 376.22 23.50 33.96 5.16 116.40 - - - - 162,571.95
- 4,148.26 64,778.83 958.82 214.43 1,404.02 161.69 - 3.58 4.12 7.97 42.08 144.43 2.37 180.57 72,051.17
as at April 1, 2019
Adjustment on initial application of
- - - - - - - - - - - (42.08) (144.43) (2.37) (180.57) (369.45)
Ind AS 116
Adjusted opening balance - 4,148.26 64,778.83 958.82 214.43 1,404.02 161.69 - 3.58 4.12 7.97 - - - - 71,681.73
Depreciation for the period - 1,123.58 9,072.75 119.71 79.04 200.35 - - 0.34 - 14.35 - - - - 10,610.12
Disposal/Adjustments - (12.96) (513.76) (25.28) (40.55) (29.48) - - (0.30) - (7.05) - - - - (629.38)
Writeoff/impairment of assets - 60.28 826.43 13.09 1.97 12.49 - - - - - - - - - 914.26
Currency translation differences - 182.84 1,862.75 26.70 2.82 31.96 5.40 - (0.07) - - - - - - 2,112.39
- 5,502.00 76,027.00 1,093.04 257.71 1,619.34 167.09 - 3.55 4.12 15.27 - - - - 84,689.12
Net carrying amount
7,401.49 21,159.69 46,952.81 664.35 240.69 1,098.60 209.13 23.50 30.41 1.04 101.13 - - - - 77,882.83
3. (b) CAPITAL WORK-IN-PROGESS

March 31, 2021 March 31, 2020
Additions 9,592.57 14,723.55
Transferred to cost of Property, plant and equipment (8,114.42) (14,691.95)
(Provision)/Reversal for impairment/(Write off) (Net) (2,229.48) (186.27)
Currency translation impact 528.91 216.06
Consolidated
4 (a) LEASES
The Company leases a number of buildings, plant and equipment, IT hardware and software assets, certain of which have a renewal and/
or purchase option in the normal course of the business. Extension and termination options are included in a number of leases across the
Company. The majority of extension and termination options held are exercisable only by the Company and not by the respective lessor. The
Company assesses at lease commencement whether it is reasonably certain to exercise the extension or termination option. The Company
re-assesses whether it is reasonably certain to exercise options if there is a significant event or significant change in circumstances within
its control. It is recognised that there is potential for lease term assumptions to change in the future due to the effects of the COVID-19
pandemic, and this will continue to be monitored by the Company where relevant. The Company’s leases mature between 2021 and 2049.
When measuring lease liability, the Company discounted lease payments using its incremental borrowing rate as at April 1, 2020. The
weighted-average rate applied is 7.97% per annum.
(` in crores)
As at As at
The following amounts are included in the Consolidated Balance Sheet
March 31, 2021 March 31, 2020
Current lease liabilities 814.00 814.18

Non-current lease liabilities 5,412.06 5,162.94
Total lease liabilities 6,226.06 5,977.12
(` in crores)
The following amounts are recognised in the consolidated statement of Profit & Loss:
March 31, 2021 March 31, 2020
2020
Interest expense on lease liabilities 495.98 469.25
Variable lease payment not included in the measurement of lease liabilities 0.06 2.98
Expenses related to short-term leases 94.91 155.34
Expenses related to low-value assets, excluding short-term leases of low-value assets 75.69 69.56
(` in crores)
Plant, Furniture,
Computers
machinery Fixtures Other
and and Office Assets
assets
equipments Appliances
Cost as at April 1, 2020 273.14 6,003.16 1,177.71 133.01 102.35 336.15 36.15 8,061.67
Additions 20.66 672.87 290.23 1.74 67.09 67.18 0.83 1,120.60
Disposals/adjustments - (116.98) (112.82) - (1.08) - - (230.88)
Currency translation differences 12.21 406.00 49.47 6.73 7.00 13.14 2.83 497.38
Cost as at March 31, 2021 306.01 6,965.05 1,404.59 141.48 175.36 416.47 39.81 9,448.77
Accumulated amortisation as at April 1, 2020 35.38 1,002.48 433.22 13.98 34.09 257.99 9.19 1,786.33
Amortisation for the period 42.87 718.00 261.43 14.47 53.27 72.68 9.32 1,172.04
Amortisation - considered as employee cost - - - - 2.75 - - 2.75
Reversal of Impairment Loss - (6.81) (31.32) - - (0.05) - (38.18)
Disposal/adjustments - (60.77) (17.42) - (0.52) - - (78.71)
Accumulated amortisation 81.85 1,725.41 670.50 29.27 92.74 338.76 19.58 2,958.11
Net carrying amount as at March 31, 2021 224.16 5,239.64 734.09 112.21 82.62 77.71 20.23 6,490.66

Consolidated
(` in crores)
Plant, Furniture,
Computers
machinery Fixtures Other
and and Office Assets
assets
equipments Appliances
Cost as at April 1, 2019 - - - - - - - -
Adjustment on initial application of Ind AS 116 267.39 5,204.99 786.70 4.33 17.86 303.34 34.98 6,619.59
Additions - 757.82 368.41 119.92 82.30 28.11 - 1,356.56
Disposals/adjustments - (144.30) - - (1.41) - - (145.71)
Cost as at March 31, 2020 273.14 6,003.16 1,177.71 133.01 102.35 336.15 36.15 8,061.67
Accumulated amortisation as at April 1, 2019 - - - - - - - -
Adjustment on initial application of Ind AS 116 0.15 39.65 142.70 2.37 - 180.57 - 365.44
Amortisation for the period 33.90 710.19 244.46 10.99 33.61 74.51 8.83 1,116.49
Impairment of Asset - 260.36 36.56 - - 0.08 - 297.00
Disposal/adjustments - (29.96) - - (0.86) - - (30.82)
Accumulated amortisation 35.38 1,002.48 433.22 13.98 34.09 257.99 9.19 1,786.33
Net carrying amount as at March 31, 2020 237.76 5,000.68 744.49 119.03 68.26 78.16 26.96 6,275.34
The Company has committed towards leases of Plant Machinery and Equipments which have not yet commenced for `30.00 crores as on
March 31, 2021 (` 171.00 crores as on March 31, 2020). There are no leases with residual value guarantees.
5. GOODWILL
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Balance at the beginning 777.06 747.87
Impairment - (8.31)
Currency translation differences 26.66 37.50
Balance at the end 803.72 777.06
As at March 31, 2021, goodwill of `99.09 crores and `704.63 crores relates to the passenger vehicles - automotive and related activity
segment (Tata and other brand vehicles) and “others” segment, respectively. As at March 31, 2020, goodwill of `99.09 crores and `677.97
crores relates to the passenger vehicles - automotive and related activity segment (Tata and other brand vehicles) and “others” segment,
respectively.
As at March 31, 2021, goodwill of `704.63 crores has been allocated to software consultancy and service cash generating unit. The
recoverable amount of the cash generating unit has been determined based on value in use. Value in use has been determined based on
future cash flows, after considering current economic conditions and trends, estimated future operating results, growth rates and anticipated
future economic conditions.
As at March 31, 2021, the estimated cash flows for a period of 5 years were developed using internal forecasts, and a pre-tax discount rate of
13.22%.The cash flows beyond 5 years have been extrapolated assuming 2% growth rates. The management believes that any reasonably
possible change in the key assumptions would not cause the carrying amount to exceed the recoverable amount of the cash generating unit.

6. (a) OTHER INTANGIBLE ASSETS

(` in crores)
Intellectual
Indefinite
Patents and property
Customer life trade Product
Software technological rights Total
related marks and development
know how and other
patents
intangibles
Cost as at April 1, 2020 8,172.29 1,624.84 616.12 371.17 5,783.60 82,599.86 99,167.88
Additions 844.86 0.79 - - - 16,735.88 17,581.53
Additions through business acquisitions 1.10 - - - - - 1.10
Disposal/Adjustments (1.73) - - - - - (1.73)
Fully amortized not in use (22.94) - - - - - (22.94)
Currency translation differences 606.38 106.50 46.68 24.29 447.12 6,311.52 7,542.49
Cost as at March 31, 2021 9,599.96 1,732.13 662.80 395.46 6,230.72 105,647.26 124,268.33
Accumulated amortisation 5,664.52 1,481.58 405.40 202.39 1,375.45 47,866.63 56,995.97
as at April 1, 2020
Amortization for the year 829.74 24.69 24.80 26.83 - 10,595.65 11,501.71
Additions through business acquisitions 0.20 - - - - - 0.20
Provision/(Reversal) for impairment/Write off 0.24 - - - - (429.10) (428.86)
Asset fully amortised not in use (22.94) - - - - - (22.94)
Net carrying amount as at March 31, 2021 2,702.52 119.75 200.83 152.01 4,748.98 43,849.09 51,773.18
Cost as at April 1, 2019 6,768.17 1,459.50 598.01 354.96 5,596.61 72,320.83 87,098.08
Additions 1,179.17 120.81 - 0.22 - 12,019.33 13,319.53
Capitalised product development - - - - - - -
Additions through business acquisitions - - - 10.32 - - 10.32
Fully amortized not in use (40.46) - - - - (4,159.76) (4,200.22)
Cost as at March 31, 2020 8,172.29 1,624.84 616.12 371.17 5,783.60 82,599.86 99,167.88
as at April 1, 2019
Amortization for the year 907.58 39.93 22.89 25.36 - 8,703.06 9,698.82
Writeoff/impairment of assets 0.45 - - - - 542.00 542.45
Asset fully amortised not in use (40.46) - - - - (4,159.76) (4,200.22)
Net carrying amount as at March 31, 2020 2,507.77 143.26 210.72 168.78 4,408.15 34,733.23 42,171.91
6. (b) INTANGIBLE ASSETS UNDER DEVELOPMENT

(` in crores)
March 31, 2021 March 31, 2020
Additions * 8,632.21 16,222.16
Transferred to cost of other intangible assets (16,857.14) (13,198.50)
(Provision)/Reversal for impairment/(Write off) (7,555.32) (162.69)
Currency translation impact 1,344.31 816.09
* the additions during the year include allocation of central overheads amounting to `806.12 crores (` 1,094.35 crores as at March 31,
2020).

Consolidated
6. (c) The useful life of trademarks and brands in respect of the acquired Jaguar Land Rover businesses have been determined to be indefinite as
the Company expects to generate future economic benefits indefinitely from these assets.
7. IMPAIRMENT ASSESSMENT OF JAGUAR LAND ROVER BUSINESS

The operations of its subsidiary Jaguar Land Rover (JLR), excluding equity accounted investments, represents a single cash-generating unit (“CGU”).
This is because of the closely connected nature of the cash flows and the degree of integrated development and manufacturing activities.
In response to the annual requirement of accounting standard, and the impact of Reimagine, management performed an impairment assessment as
at March 31, 2021.
For the year ended March 31, 2021 assessment, the recoverable value was determined using the value in use (“VIU”) approach. No impairment was
identified as the CGU recoverable amount exceeded its carrying amount by `27,206.70 crores (£2,700 million ) (`3,554.31 crores (£380 million)
in the year ended March 31, 2020). The impairment loss recorded in the previous year was not reversed because the underlying reasons for the
increased headroom do not support this. The increase in headroom is more related to unwind of the discount rate and asset write-offs than an
improvement in the underlying performance of the business when compared against the assumed performance at the date of impairment.
JLR has considered it appropriate to undertake the impairment assessment with reference to the latest business plan that was in effect as at the
reporting date. The business plan includes a five-year cash flow forecast and contains growth rates that are primarily a function of the JLR’s Cycle
Plan assumptions, historic performance and management’s expectation of future market developments through to 2025/26.
In forecasting the future cash flows management have given due consideration to the risks that have arisen due to the current economic uncertainty.
The approach and key assumptions used to determine JLR’s CGU VIU were as follows:
Terminal value variable profit – Due to the importance of product mix to the business’ cash flow the management consider variable profit to be a
key assumption. Whilst years 1 to 5 of the business plan is largely driven from the existing portfolio, management’s Reimagine strategy results
in a change in product portfolio in the outer years of the business plan. When considering the cash flows to model into perpetuity, it is therefore
necessary to derive a steady-state variable profit value based on this change, the business plan volume set and associated implied variable profit
levels;
Terminal value capital expenditure – the 5-year cash flows timing and amount are based on the latest Cycle Plan. The terminal value has been
derived based the management’s best estimate of a maintenance level of capital expenditure which has been derived from depreciation and
amortisation expectations and funding requirements in responses to longer-term industry trends which are anticipated in the VIU calculation.
Sensitivity to Key Assumptions
The key assumptions that impact the value in use are those that
(i) involve a significant amount of judgement and estimation and
(ii) drive significant changes to the recoverable amount when flexed under reasonably possible outcomes. As a significant portion of the
recoverable amount lies in the VIU terminal value, management have focussed disclosures on reasonably possible changes that impact the
terminal value.
Given the inherent uncertainty about how risk may arise, and the interaction of volumes and cost management, management consider a net impact
on terminal period cash flows to be the best means of indicating the sensitivity of the model to such changes in the terminal period.
The value of key assumptions used to calculate the recoverable amount are as follows:
As at As at
March 31, 2021 March 31, 2020
Terminal value variable profit (%GVR) 21.4% 19.7%
Terminal value capital expenditures (%GVR) 8.9% 9.1%
The table below shows the amount by which the value assigned to the key assumptions must change for the recoverable amount of the CGU
to be equal to its carrying amount:

Revised Revised
% Change % Change
Assumption Assumption
Terminal value variable profit (%GVR) 20.1% (6.3)% 19.5% (0.9)%
Terminal value capital expenditures (%GVR) 10.2% 15.1% 9.3% 1.9%

8. IMPAIRMENT LOSSES/(REVERSAL) FOR PASSENGER VEHICLE SEGMENT AND OTHER PROVISIONS

(a) Impairment losses/(reversal) for Passenger Vehicle Segment
The Company tests its passenger vehicle cash generating unit (CGU) for impairment at least annually and more frequently when there is
an indication of impairment. An impairment loss is recognized if the recoverable amount is lower than the carrying value. The Company
also periodically assesses if there are any triggers for reversal of previously recognised impairment loss. A reversal of impairment loss
is recognised if there is a trigger for reversal and the recoverable value exceeds the carrying value.
As at March 31, 2020, the Company assessed the recoverable value for this CGU, due to refresh of its strategy in response to change
in market conditions on account of various factors (economic environment, demand forecasts etc.) including COVID 19 pandemic. The
recoverable value determined by Fair Value less Cost of Disposal (‘FVLCD’) was lower than the carrying value of the CGU and this
resulted in an impairment charge for the year ended March 31, 2020 recognised within ‘Exceptional items’.
As at March 31, 2021, the Company identified certain triggers for reversal of the previously recorded impairment based on both
external and internal indicators. Accordingly, the Company reassessed its estimates and determined the recoverable value for this
CGU considering the significant improvement in absolute and relative performance and outlook of the business when compared with
the assumed performance at the time when the impairment loss was recorded. Based on this reassessment, the Company has reversed
the initially recognised impairment for this CGU.
The key drivers for this improved performance include :
1 New and improved product portfolio
2 Product positioning in segments where the Company did not have a presence earlier
3 Revamp of dealer and service network
4 Capacity de-bottlenecking
5 Cost reduction initiatives
In addition to the above, the post COVID pent up demand was a tailwind and the changing consumer preference towards personal
mobility as well as changes to the economic outlook have improved the outlook on the industry. A combination of these factors enabled
the Company to enhance it’s market share to 8.1% for the year ended March 31, 2021 as compared to 4.8% for the year ended March
31, 2020.
The recoverable value was determined using the Fair value less cost of Disposal (“FVLCD”). CGU’s FVLCD has been valued using
Comparable Company Market Multiple method (CCM). The average of enterprise value to sales multiple of Comparable Companies
applied to actual sales of the CGU for year ended March 31, 2021 has been considered as the FVLCD as per CCM. The fair value of the
CGU is as follows:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Recoverable amount 14,618.60 9,120.00
The approach and key (unobservable) assumptions used to determine the CGU’s FVLCD were as follows:
The carrying value of the CGU was `5,853.39 crores as at March 31, 2021, compared with the recoverable value of `14,618.60 crores,
determined by FVCLD and `10,588.00 crores as per VIU.
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Enterprise value to Sales multiple 1.27 0.75

Consolidated
The impairment loss recognised in the year ended March 31, 2020 and its subsequent reversal in the year ended March 31, 2021 was
as follows:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Property, plant and equipment (refer note 3 (a)) (530.74) 634.15
Capital work-in-progress (refer note 3 (b)) (68.37) 71.21
Right of use assets (refer note 4 ) (38.19) 45.94
Other intangible assets (refer note 6 (a)) (429.10) 542.00
Intangible assets under development (refer note 6 (b)) (116.01) 125.34
Total (1,182.41) 1,418.64
Sensitivity to key assumptions
The change in the following assumptions used in the impairment review would, in isolation, lead to a change in FVCLD as at March 31,
2021 (although it should be noted that these sensitivities do not take account of potential mitigating actions):
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Decrease in Enterprise value (EV) to Sales multiple by 10% 1,461.86 912.00
(b) Other provisions

During the year ended March 31, 2020, a provision had been recognized for certain supplier contracts ranging from 5 to 10 years,
which had become onerous, as the Company estimated that it will procure lower quantities than committed and the costs will exceed
the future economic benefit.
As at March 31, 2021, the Company has reassessed the onerous provision created and based on the revised volume outlook a reversal
of provision aggregating `777.00 crores has been accounted. During the year the Company has also made provision for estimated
supplier claims of `114.00 crores, which are under negotations with supplier.
(c) Impairment of assets in subsidiaries
(i) The Company assessed the recoverable value for assets belonging to its subsidiary Tata Motors European Technical Centre
PLC (TMETC), due to change in market conditions and reduced demand forecasts. The recoverable value of `46.55 crores was
determined by its value in use of the relevant assets of TMETC. The recoverable amount of TMETC of `46.55 crores was lower
than the carrying value of the CGU of `344.04 crores and this resulted in an impairment charge of `297.49 crores recognized for
the year ended March 31, 2020.
(ii) The Company also assessed the recoverable value for goodwill , tax and certain other assets belonging to its subsidiary Trilix
S.r.l as a result of current market conditions and reduced demand forecasts resulting in a possibility of non recovery of these
assets according to Management’s estimates. The Company recognized an impairment charge of `55.71 crores for the year
ended March 31, 2020 , which includes `8.31 crores for goodwill and `46.17 crores for current tax assets.

9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES:

(a) Associates:
The Company has no material associates as at March 31, 2021. The aggregate summarized financial information in respect of the
Company’s immaterial associates that are accounted for using the equity method is set forth below.
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Carrying amount of the Company's interest in associates 1,023.07 1,036.26
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Company’s share of profit/(loss) in associates * (16.41) 16.32
Company’s share of other comprehensive income in associates 4.89 (3.37)
Company’s share of total comprehensive income in associates (11.52) 12.95
Fair value of investment in an equity accounted associate for which published price quotation is available, which is a level 1 input, was
`124.10 crores and `89.01 crores as at March 31, 2021 and 2020, respectively. The carrying amount as at March 31, 2021 and 2020
was `138.25 crores and `143.11 crores, respectively.
(b) Joint ventures:
(i) Details of the Company’s material joint venture is as follows:
% holding % holding
Principal place of the
Name of joint venture Principal activity as at March 31, as at March 31,
business
2021 2020
Chery Jaguar Land Rover Manufacture and China 50% 50%
Automotive Co. Limited (Chery) assembly of vehicles
Chery is a limited liability company, whose legal form confers separation between the parties to the joint arrangement. There is
no contractual arrangement or any other facts and circumstances that indicate that the parties to the joint venture have rights to
the assets and obligations for the liabilities of the joint arrangement. Accordingly, Chery is classified as a joint venture. Chery is
not publicly listed.
The following tables sets out the summarised financial information of Chery after adjusting for material differences in accounting
policies:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Current assets 5,718.76 5,606.63
Non-current assets 14,581.18 14,686.38
Current liabilities (13,750.20) (12,616.20)
Non-current liabilities (115.73) (770.37)
The above amounts of assets and liabilities include the following:
Cash and cash equivalents 3,249.70 2,602.83
Current financial liabilities (excluding trade and other payables and provisions) (5,049.57) (5,463.58)
Non-current financial liabilities (excluding trade and other payables and provisions) (39.18) (770.37)
Share of net assets of material joint venture 3,217.01 3,453.22
Other consolidation adjustments (49.33) (70.59)
Carrying amount of the Company's interest in joint venture 3,167.68 3,382.63

Consolidated
(` in crores)
March 31, 2021 March 31, 2020
Revenue 18,058.00 11,609.02
Net income/(loss) (822.09) (2,005.40)
Total comprehensive income for the year (822.09) (2,005.40)
The above net income includes the following:
Depreciation and amortization (1,989.81) (1,804.73)
Interest expense (net) (203.08) (222.34)
income tax expense/(credit) 306.07 505.36
Reconciliation of above summarized financial information to the carrying amount of the interest in the joint venture recognized in
the consolidated financial statements:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Net assets of the joint venture 6,434.01 6,906.44
Proportion of the Company's interest in joint venture 3,217.01 3,453.22
Other consolidation adjustments (49.33) (70.59)
Carrying amount of the Company's interest in joint venture 3,167.68 3,382.63
During the year ended March 31, 2021, a dividend of £ Nil (`Nil ) was received by a subsidiary in UK from Chery Jaguar Land Rover
Automotive Co. Ltd. (2020 : £ 67.3 million (`606.40 crores)) and an amount of £ Nil (`Nil) (2020: £ 67.3 million (`606.40 crores)) was
invested by UK subsidiary in Chery Jaguar Land Rover Automotive Co. Ltd.
(ii) The aggregate summarized financial information in respect of the Company’s immaterial joint ventures that are accounted for
using the equity method is set forth below.
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Carrying amount of the Company's interest in joint ventures 10.04 -
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Company’s share of profit/(loss) in immaterial joint ventures* - -

Company’s share of other comprehensive income in immaterial joint ventures 0.15 -
Company’s share of total comprehensive income in immaterial joint ventures 0.15 -
(c) Summary of carrying amount of the Company’s interest in equity accounted investees:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Carrying amount in immaterial associates 1,023.07 1,036.26
Carrying amount in material joint venture 3,167.68 3,382.63
Carrying amount in immaterial joint ventures 10.04 -
Total 4,200.79 4,418.89

(d) Summary of Company’s share of profit/(loss) in equity accounted investees:

(` in crores)
March 31, 2021 March 31, 2020
Share of profit/(loss) in immaterial associates (16.41) 16.32
Share of profit/(loss) in material joint venture (411.05) (1,002.70)
Share of profit/(loss) on other adjustments in material joint venture 48.50 (13.62)
Share of profit/(loss) in immaterial joint ventures - -
(378.96) (1,000.00)
(e) Summary of Company’s share of other comprehensive income in equity accounted investees:
(` in crores)
March 31, 2021 March 31, 2020
Share of other comprehensive income in immaterial associates 3.02 (2.48)
Currency translation differences-immaterial associates 1.87 (0.89)
Currency translation differences-material joint venture 147.99 103.50
Currency translation differences-immaterial joint ventures 0.15 -
153.03 100.13
* Company’s share of profit/(loss) of the equity accounted investees has been determined after giving effect for the subsequent
amortization/depreciation and other adjustments arising on account of fair value adjustments made to the identifiable net assets
of the equity accounted investee as at the date of acquisition and other adjustment arising under the equity method of accounting.
10 OTHER INVESTMENTS - NON-CURRENT
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Investments - measured at Fair value through Other Comprehensive Income
Quoted:
Equity shares 499.39 158.68
Unquoted:
Equity shares 580.77 450.51
Total 1,080.16 609.19
(b) Investments - measured at Fair value through profit or loss
Quoted:
(i) Equity shares - 157.78
Unquoted:
(i) Non-cumulative redeemable preference shares 0.40 0.40
(ii) Cumulative redeemable preference shares 1.50 1.50
(iii) Equity shares 183.83 160.39
(iv) Convertible debentures 93.73 87.72
(v) Others 8.68 11.07
Total 288.14 418.86
Total (a+b) 1,368.30 1,028.05
Aggregate book value of quoted investments 499.39 316.46
Aggregate market value of quoted investments 499.39 316.46
Aggregate book value of unquoted investments 868.91 711.59

Consolidated
11 OTHER INVESTMENTS - CURRENT

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Investments - measured at Fair value through profit and loss
Unquoted:
Mutual funds 2,972.35 1,506.93
Total 2,972.35 1,506.93
(b) Investments - measured at amortised cost
Unquoted:
Mutual funds 16,078.84 9,354.61
Total 16,078.84 9,354.61
Total (a+b) 19,051.19 10,861.54
Aggregate book value of unquoted investments 19,051.19 10,861.54
12. LOANS AND ADVANCES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Non-current
Secured, considered good:
(a) Loans to channel partners (Net of allowances for credit impaired balances `Nil and `7.75 crores as 706.36 549.67
at March 31, 2021 and March 31, 2020, respectively.)
Unsecured, considered good:
(a) Loans to employees 24.60 28.67
(b) Loan to joint arrangements (Net of allowances for credit impaired balances `Nil and `3.75 crores - -
as at March 31, 2021 and March 31, 2020, respectively.)
(c) Deposits (Net of allowances for credit impaired balances `1.14 crores and `0.49 crores as at March 192.48 136.14
31, 2021 and March 31, 2020, respectively.)
(d) Advances to channel partners (Net of allowances for credit impaired balances `15.15 crores and 275.86 60.23
`18.28 crores as at March 31, 2021 and March 31, 2020, respectively.)
(e) Others 5.29 8.07
Total 1,204.59 782.78
Current
Secured, considered good:
(a) Loans to channel partners 104.36 113.14
Unsecured, considered good:
(a) Advances to supplier, contractors etc. (Net of allowances for credit impaired balances 1,542.74 781.80
`92.58 crores and `98.06 crores as at March 31, 2021 and March 31,2020, respectively)
(b) Loans to channel partners 98.00 35.62
(c) Inter corporate deposits (Net of allowances for credit impaired balances `Nil and `12.07 crores as 4.30 4.69
at March 31, 2021 and March 31, 2020, respectively.)
Total 1,749.40 935.25

13. OTHER FINANCIAL ASSETS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Non-current
(a) Derivative financial instruments 3,261.22 2,291.16
(c) Deposits with banks 80.40 -
(d) Restricted deposits 324.46 83.95
(e) Margin money / cash collateral with banks 534.68 786.51
(f) Government grant receivables 665.67 578.19
(g) Recoverable from suppliers 761.13 974.70
(h) Finance lease receivables 126.90 -
(i) Other deposits 4.95 6.87
Total 5,813.98 4,749.57
Margin money with banks in restricted cash deposits consists of collateral provided for transfer of finance receivables. Restricted deposits as at
March 31, 2021 and 2020 includes `47.55 crores and `56.12 crores, respectively, held as a deposit in relation to ongoing legal cases.
Current
(c) Government grant receivable 561.02 429.69
(d) Deposit with financial institutions 1,000.00 750.00
(e) Recoverable from suppliers 784.38 942.18
(f) Lease receivables 23.86 0.60
(g) Others - 25.26
Total 5,274.32 4,586.48
Deposits with financial institutions as at March 31, 2021 of `100.00 crores (as at March 31, 2020 `Nil) is held as security in relation to
repayment of borrowings.
14. INVENTORIES
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Raw materials and components 3,029.64 2,103.36
(b) Work-in-progress 4,373.48 4,550.29
(c) Finished goods 27,313.14 29,631.77
(d) Stores and spare parts 185.33 189.84
(e) Consumable tools 485.07 518.53
(f) Goods-in-transit - Raw materials and components 701.93 463.09
Total 36,088.59 37,456.88
Note:
(i) Inventories of finished goods include `4,171.69 crores and `4,358.71 crores as at March 31, 2021 and 2020 respectively, relating to
vehicles sold subject to repurchase arrangements.
(ii) Cost of inventories (including cost of purchased products) recognized as expense during the year ended March 31, 2021 and 2020
amounted to `1,82,360.88 crores and `1,96,621.07 crores, respectively.
(iii) During the year ended March 31, 2021 and 2020, the Company recorded inventory write-down expense of `129.19 crores and `320.81
crores, respectively.

Consolidated
15. TRADE RECEIVABLES (UNSECURED)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Receivables considered good 12,679.08 11,172.69
Credit impaired receivables 989.19 1,114.00
13,668.27 12,286.69
Less : Allowance for credit impaired receivables (989.19) (1,114.00)
Total 12,679.08 11,172.69
16. CASH AND CASH EQUIVALENTS
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Cash on hand 11.11 6.96
(b) Cheques on hand 27.92 45.07
(c) Balances with banks 8,679.66 8,994.82
(d) Deposit with banks 22,981.32 9,420.95
Total 31,700.01 18,467.80
17. BANK BALANCES
(` in crores)
As at As at
March 31, 2021 March 31, 2020
With upto 12 months maturity:
(a) Earmarked balances with banks (refer note (i) and (ii) below) 746.45 429.70
(b) Bank deposits 14,346.00 14,829.47
Total 15,092.45 15,259.17
Note:
(i) Earmarked balances with bank includes `491.27 crores and `299.70 crores as at March 31, 2021 and 2020, respectively held as
security in relation to interest and repayment of bank borrowings. Out of these deposits, `174.44 crores and `101.51 crores as at
March 31, 2021 and 2020, respectively are pledged till the maturity of the respective borrowings.
(ii) Earmarked balances with banks as at March 31, 2021 includes restricted deposits of `73.47 crores (as at March 31, 2020 `Nil) towards
Company’s contribution for Family Pension from October 1, 2019, in lieu of Tata Motors Pension Trust exemption surrender application
pending with Employee Provident Fund Organization. Subsequent to the year end, these balances are transferred to Tata Motors
Pension Trust.

18. FINANCE RECEIVABLES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Finance receivables 35,962.59 31,730.45
Less: allowance for credit losses (1,247.68) (651.38)
Total 34,714.91 31,079.07
Current portion 17,868.09 14,245.30
Non-current portion 16,846.82 16,833.77
Total 34,714.91 31,079.07
Changes in the allowance for credit losses in finance receivables are as follows:
(` in crores)
March 31, 2021 March 31, 2020
Balance at the beginning 651.38 833.05
Allowances made during the year 957.93 660.21
Written off (361.63) (841.88)
Balance at the end 1,247.68 651.38
19. ALLOWANCE FOR TRADE AND OTHER RECEIVABLES

(` in crores)
March 31, 2021 March 31, 2020
Change in the allowances for trade and other receivables are as follows:
Allowances made during the year * 50.01 137.03
Provision for loan given to a Joint venture - 15.82
Written off (150.16) (74.19)
Foreign exchange translation differences 13.85 9.93
* Includes `29.32 crores and `34.44 crores netted off in revenues as at March 31, 2021 and 2020, respectively.
20. OTHER NON-CURRENT ASSETS
(` in crores)
March 31, 2021 March 31, 2020
(a) Capital advances 219.92 387.05
(b) Taxes recoverable, statutory deposits and dues from government (net of allowances for credit 908.35 713.71
impaired balances of `31.66 crores and `Nil as at March 31, 2021 and 2020, respectively)
(c) Prepaid expenses 183.11 84.87
(d) Recoverable from insurance companies 291.05 371.21
(e) Employee benefits 5.09 3,821.08
(f) Others 0.97 3.65
Total 1,608.49 5,381.57

Consolidated
21. OTHER CURRENT ASSETS

(` in crores)
March 31, 2021 March 31, 2020
(a) Advances and other receivables (Net of allowances for credit impaired balances `61.48 crores and 517.55 505.97
`47.44 crores as at March 31, 2021 and March 31, 2020, respectively.)
(b) GST/VAT, other Taxes recoverable, statutory deposits and dues from government (Net of 4,175.18 4,229.15
allowances for credit impaired balances `83.18 crores and `58.84 crores as at March 31, 2021 and
March 31, 2020, respectively.)
(c) Prepaid expenses 1,220.13 1,334.36
(d) Employee benefits 43.93 3.10
(e) Others 341.61 192.33
Total 6,298.40 6,264.91
22. INCOME TAXES
The domestic and foreign components of profit/(loss) before income tax is as follows:
(` in crores)
March 31, 2021 March 31, 2020
Profit/(loss) before income taxes
India (1,988.16) (6,600.69)
Other than India (8,486.12) (3,979.29)
Total (10,474.28) (10,579.98)
The domestic and foreign components of income tax expense is as follows:
(` in crores)
March 31, 2021 March 31, 2020
Current taxes
India 136.36 190.06
Other than India 1,573.82 1,702.99
Deferred taxes
India 14.65 (136.29)
Other than India 817.03 (1,361.51)
Total income tax expense 2,541.86 395.25

The reconciliation of income tax expense calculated as per tax rates applicable to individual entities with income tax expense/(credit)
reported in the consolidated statement of profit & loss is as follows:
(` in crores)
March 31, 2021 March 31, 2020
Profit/(Loss) before tax (10,474.28) (10,579.98)
Income tax expense at tax rates applicable to individual entities (1,882.53) (2,721.46)
Additional deduction for patent, research and product development cost 1.66 (281.62)
Items (net) not deductible for tax/not liable to tax :
- foreign currency (gain)/loss relating to loans and deposits (net), foreign currency (gain)/loss arising 4.95 47.45
on account of Integral foreign operations.
- interest and other expenses relating to borrowings for investment 31.57 55.80
- Dividend from investments (other than subsidiaries, joint operations, equity accounted investees) - (6.92)
- Write-down of assets not qualifying for tax relief 429.56 -
- Others 63.47 150.50
Undistributed earnings of subsidiaries, joint operations and equity accounted investees 310.93 (85.55)
Deferred tax assets not recognized because realisation is not probable 3,682.48 3,191.95
Previously recognised deferred tax assets written down (0.10) 49.27
Utilization/credit of unrecognised tax losses, unabsorbed depreciation and other tax benefits (347.16) (324.02)
Impact of change in statutory tax rates 92.96 397.35
Profit on sale of investments 1.52 -
Others 152.55 (77.50)
Income tax expense reported in consolidated statement of profit & loss 2,541.86 395.25
Note :
1. The UK Finance Act 2016 was enacted during the year ended March 31, 2017, which included provisions for a reduction in the UK
corporation tax rate to 17% with effect from April 1, 2020. Subsequently a change to the main UK corporation tax rate, announced in
2020, was substantively enacted as at March 31, 2020. “Impact of change in statutory tax rates” includes a charge of `414.58 crores (£
49.2 million) for the year ended March 31, 2020. The rate applicable from April 1, 2020 now remains at 19%, rather than the previously
enacted reduction to 17%.
Accordingly, JLR UK deferred tax has been provided at a rate of 19% on assets (2020: 19%) and 19% on liabilities (2020: 19%),
recognising the applicable tax rate at the point when the timing difference is expected to reverse.
2. Tata Motors Limited (TML) has presently, decided not to opt for the New Tax Regime inserted as per section 115BAA of the Income-tax
Act, 1961 and enacted by the Taxation Laws (Amendment) Ordinance, 2019 (“the Ordinance”) which is applicable from Financial Year
beginning April 1, 2019. TML has accordingly applied the existing tax rates in the financial statements for the year ended March 31,
2021.

Consolidated
(` in crores)
Recognized in/reclassified from
Opening Recognized in other comprehensive income MAT Credit Closing
balance profit or loss Other than Utilized balance
Translation
translation
Unabsorbed depreciation 2,555.97 (94.45) (1.60) (0.01) - 2,459.91
Business loss carry forwards 3,440.17 (977.26) 32.22 - - 2,495.13
- provisions, allowances for doubtful 4,421.31 (971.49) 31.45 0.02 - 3,481.29
receivables and others
Compensated absences and retirement benefits (417.73) (14.35) (110.52) 1,507.15 - 964.55
Minimum alternate tax carry-forward 67.15 (67.10) - - - 0.05
Property, plant and equipment 5,941.73 1,222.39 568.96 - - 7,733.08
Derivative financial instruments 775.71 177.15 105.70 (1,174.74) - (116.18)
Unrealised profit on inventory 1,216.72 (217.18) 75.35 - - 1,074.89
Others 1,533.69 (836.96) 31.68 (1.59) - 726.82
Total deferred tax assets 19,534.72 (1,779.25) 733.24 330.83 - 18,819.54
Property, plant and equipment 2,011.34 547.49 (0.06) - - 2,558.77
Intangible assets 12,193.58 (1,565.16) 642.11 - - 11,270.53
Undistributed earnings in subsidiaries, joint 1,588.17 95.27* 80.86 - - 1,764.30
operations and equity accounted investees
Fair valuation of retained interest in a subsidiary 16.95 - - - - 16.95
subsequent to disposal of controlling equity interest
Others 208.65 (25.17) (0.69) 61.74 - 244.53
Total deferred tax liabilities 16,018.69 (947.57) 722.22 61.74 - 15,855.08
Net assets/(liabilities) 3,516.03 (831.68) 11.02 269.09 - 2,964.46
Deferred tax assets ` 4,520.35
Deferred tax liabilities ` 1,555.89
* Net off `215.66 crores reversed on dividend distribution by subsidiaries.

As at March 31, 2021, unrecognized deferred tax assets amount to `10,245.85 crores and `8,066.14 crores, which can be carried forward
indefinitely and up to a specified period, respectively. These relate primarily to depeciation carry forwards, other deductible temporary
differences and business losses. The deferred tax asset has not been recognized on the basis that its recovery is not probable in the
foreseeable future.
Unrecognized deferred tax assets expire unutilized based on the year of origination as follows:
(` in crores)
March 31,
2022 801.60
2023 871.95
2024 752.81
2025 2,348.84
2026 676.30
Thereafter 2,614.64
The Company has not recognized deferred tax liability on undistributed profits of certain subsidiaries amounting to `30,821.39 crores
and `47,629.56 crores as at March 31, 2021 and 2020 respectively, because it is able to control the timing of the reversal of temporary
differences associated with such undistributed profits and it is probable that such differences will not reverse in the foreseeable future.

(` in crores)
Adjustment Recognized in/reclassified
on initial Adjusted Recognized from other comprehensive MAT
Opening Closing
application Opening in profit or income Credit
balance balance
of Ind AS Balance loss Other than Utilized
116 Translation
translation
Unabsorbed depreciation 2,563.47 - 2,563.47 (7.66) 0.16 - - 2,555.97
Business loss carry forwards 2,971.96 - 2,971.96 437.73 30.48 - - 3,440.17
- provisions, allowances for doubtful 3,417.29 - 3,417.29 891.21 112.58 0.23 - 4,421.31
receivables and others
Compensated absences and retirement 1,246.29 - 1,246.29 (280.71) 12.82 (1,396.13) - (417.73)
benefits
Minimum alternate tax carry-forward 106.62 - 106.62 (35.69) - - (3.78) 67.15
Property, plant and equipment 4,929.36 29.23 4,958.59 813.14 170.00 - - 5,941.73
Derivative financial instruments 1,225.32 - 1,225.32 (161.98) 33.43 (321.06) - 775.71
Unrealised profit on inventory 1,141.87 - 1,141.87 49.86 37.29 (12.30) - 1,216.72
Others 1,258.87 - 1,258.87 234.97 39.31 0.54 - 1,533.69
Total deferred tax assets 18,861.05 29.23 18,890.28 1,940.87 436.07 (1,728.72) (3.78) 19,534.72
Property, plant and equipment 2,626.65 - 2,626.65 (614.34) (0.59) (0.38) - 2,011.34
Intangible assets 10,750.95 - 10,750.95 1,155.74 286.89 - - 12,193.58
Undistributed earnings of subsidiaries, 1,689.22 - 1,689.22 (131.76)* 30.71 - - 1,588.17
joint operations and equity accounted
investees
Fair valuation of retained interest in a 16.95 - 16.95 - - - - 16.95
subsidiary subsequent to disposal of
controlling equity interest
Others 117.21 - 117.21 33.43 0.23 57.78 - 208.65
Total deferred tax liabilities 15,200.98 - 15,200.98 443.07 317.24 57.40 - 16,018.69
Net assets/(liabilities) 3,660.07 29.23 3,689.30 1,497.80 118.83 (1,786.12) (3.78) 3,516.03
Deferred tax assets ` 5,457.90
Deferred tax liabilities ` 1,941.87
* Net off `46.21 crores reversed on dividend distribution by subsidiaries.

Consolidated
23. EQUITY SHARE CAPITAL

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Authorised:
(i) 400,00,00,000 Ordinary shares of `2 each 800.00 800.00
(ii) 100,00,00,000 A' Ordinary shares of `2 each 200.00 200.00
(iii) 30,00,00,000 Convertible Cumulative Preference shares of `100 each 3,000.00 3,000.00
(as at March 31, 2020: 30,00,00,000 shares of `100 each)
Total 4,000.00 4,000.00
(b) Issued [Note (j)]:

Total 765.91 719.64
(c) Subscribed and called up:

765.76 719.49
(d) Calls unpaid - Ordinary shares (0.00)* (0.00)*
310 Ordinary shares of `2 each (`1 outstanding on each) and 260 Ordinary shares of `2 each
(`0.50 outstanding on each)
(as at March 31, 2020: 310 Ordinary shares of `2 each (`1 outstanding on each) and 260
Ordinary shares of `2 each (`0.50 outstanding on each) )
(e) Paid-up (c+d): 765.76 719.49

(f) Forfeited - Ordinary shares 0.05 0.05
Total (e + f) 765.81 719.54
(No. of shares) (` in crores) (No. of shares) (` in crores)

Year ended March 31, 2021 Year ended March 31, 2020
(g) The movement of number of shares and share capital
(i) Ordinary shares
Add: Preferential allotment of shares/conversion of 231,333,871 46.27 201,623,407 40.32
share warrants (Refer Note (h) below)
Add: Allotment of shares held in abeyance - - 1,793 0*
(ii) 'A' Ordinary shares
Balance as at April 1 508,502,896 101.70 508,502,371 101.70
Add: Allotment of shares held in abeyance - - 525 0*
Balance as at March 31 508,502,896 101.70 508,502,896 101.70
* less than `50,000/-

(h) During the year ended March 31, 2020, the Company has allotted 20,16,23,407 Ordinary Shares at a price of `150 per Ordinary
Share aggregating to `3,024.35 crores and 23,13,33,871 Convertible Warrants (‘Warrants’), each carrying a right to subscribe to one
Ordinary Share per Warrant, at a price of `150 per Warrant (‘Warrant Price’), aggregating to `3,470.00 crores on a preferential basis to
Tata Sons Private Limited. An amount equivalent to 25% of the Warrant Price was paid at the time of subscription and the balance 75% of the
Warrant Price was payable by the Warrant holder against each Warrant at the time of allotment of Ordinary Shares pursuant to exercise of
the options attached to Warrant(s) to subscribe to Ordinary Share(s), by June 2021. The Company has fully utilized the amount of `3,891.85
crores towards repayment of debt, and other general corporate purposes of the Company and its subsidiaries.
During the quarter and year ended March 31, 2021, on exercise of options by Tata Sons Pvt Ltd and on receipt of balance subscription money
of `2,602.51 crores, the Company has fully converted 23,13,33,871 convertible warrants into Ordinary Shares, that were issued during year
ended March 31, 2020. The Company has not utilised any of this amount as at March 31, 2021.
(i) The entitlements to 4,92,559 Ordinary shares of `2 each (as at March 31, 2020 : 4,92,559 Ordinary shares of `2 each) and 2,33,214 ‘A’
Ordinary shares of `2 each (as at March 31, 2020: 233,214 ‘A’ Ordinary shares of `2 each) are subject matter of various suits filed in the courts
/ forums by third parties for which final order is awaited and hence kept in abeyance.
(j) Rights, preferences and restrictions attached to shares :
(i) Ordinary shares and ‘A’ Ordinary shares both of `2 each :
• 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 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. Further, the Board of Directors may also declare an interim dividend. 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 Depositary Shares (ADSs) and Global Depositary Shares (GDSs) :
• Each ADS and GDS underlying the ADR and GDR respectively represents five Ordinary shares of `2 each. A holder of ADS and GDS
is not entitled to attend or vote at shareholders meetings. An ADS holder is entitled to issue voting instructions to the Depositary
with respect to the Ordinary shares represented by ADSs only in accordance with the provisions of the Company’s ADSs deposit
agreement and Indian Law. The depositary for the ADSs and GDSs shall exercise voting rights in respect of the deposited shares by
issue of an appropriate proxy or power of attorney in terms of the respective deposit agreements.
• Shares issued upon conversion of ADSs and GDSs will rank pari passu with the existing Ordinary shares of `2 each in all respects
including entitlement of the dividend declared.
(k) Number of shares held by each shareholder holding more than 5 percent of the issued share capital :
% Issued % Issued
Share Capital No. of Shares Share Capital No. of Shares
(i) Ordinary shares :
(a) Tata Sons Private Limited 43.73% 1,45,21,13,801 39.52% 1,22,07,79,930
(b) Citibank N A as Depository # 35,37,15,165 # 32,07,93,365
(ii) 'A' Ordinary shares :

(a) Tata Sons Private Limited 7.57% 3,85,11,281 5.26% 2,67,22,401
(b) ICICI Prudential Balanced Advantage Fund 14.26% 7,25,19,454 11.03% 5,60,75,659
(c) Franklin India Smaller Companies Fund * * 12.84% 6,52,79,915
(d) Government Of Singapore * * 5.74% 2,92,11,889
# held by Citibank, N.A. as depository for American Depository Receipts (ADRs) and Global Depository Receipts (GDRs)
* Less than 5%
(l) Information regarding issue of shares in the last five years
(a) The Company has not issued any shares without payment being received in cash.
(b) The Company has not issued any bonus shares.
(c) The Company has not undertaken any buy-back of shares.
Consolidated
24. OTHER COMPONENTS OF EQUITY
(a) The movement of Currency translation reserve is as follows:

(` in crores)
March 31, 2021 March 31, 2020
Exchange differences arising on translating the net assets of foreign operations (net) 3,702.50 2,219.70
Net change in translation reserve - equity accounted investees (net) 150.01 102.61
(b) The movement of Equity instruments held as fair value through other comprehensive income(FVTOCI) is as follows:
(` in crores)
March 31, 2021 March 31, 2020
Other Comprehensive income for the year 420.66 (137.07)
Income tax relating to gain/(loss) recognised on equity investments, where applicable (18.05) (2.38)
Profit on sale of equity investments reclassified to retained earnings (4.36) -
(c) The movement of gain/(loss) on debt instruments held as fair value through other comprehensive income (FVTOCI) is
as follows:
(` in crores)
March 31, 2021 March 31, 2020
Balance at the beginning 88.63 -
Other Comprehensive income for the year 258.47 136.24
Income tax relating to gain/(loss) recognised on debt instrument, where applicable (90.32) (47.61)
Balance at the end 256.78 88.63
(d) The movement of Hedging reserve is as follows:

(` in crores)
March 31, 2021 March 31, 2020
Balance at the beginning (3,891.90) (5,602.62)
Gain/(loss) recognised on cash flow hedges 3,995.16 (2,400.47)
Income tax relating to gain/(loss) recognized on cash flow hedges (773.08) 492.15
(Gain)/loss reclassified to profit or loss 1,145.59 4,773.17
Income tax relating to gain/(loss) reclassified to profit or loss (221.01) (906.47)
Amounts reclassified from hedge reserve to inventory 69.87 (305.75)
Income tax related to amounts reclassified from hedge reserve to inventory (13.28) 58.09
Balance at the end 311.35 (3,891.90)
Of the above balance related to :
Continued Hedges 240.82 (3,611.13)
Discontinued Hedges 70.53 (280.77)

(e) The movement of Cost of hedging reserve is as follows:

(` in crores)

March 31, 2021 March 31, 2020
Balance at the beginning (213.28) (70.80)
Gain/(loss) recognised on cash flow hedges 349.36 (127.76)
Income tax relating to gain/(loss) recognized on cash flow hedges (70.79) 34.65
(Gain)/loss reclassified to profit or loss (50.76) (94.24)
Income tax relating to gain/(loss) reclassified to profit or loss 3.62 16.70
Amounts removed from hedge reserve and recognised in inventory 60.17 34.77
Income tax related to amounts removed from hedge reserve and recognised in inventory (11.43) (6.61)
Of the above balance related to :
Continued Hedges 66.88 (215.65)
Discontinued Hedges - 2.37
(f) Summary of Other components of equity:

(` in crores)
March 31, 2021 March 31, 2020
Currency translation reserve 8,727.21 4,874.70
Equity instruments through FVTOCI 320.88 (77.37)
Debt instruments through FVTOCI 256.78 88.63
Hedging reserve 311.35 (3,891.90)
Cost of hedging reserve 66.88 (213.28)
Total 9,683.11 780.78
The Company had been presenting, gains and losses on effective cash flow hedges of inventory in the Statement of Other Comprehensive
Income as “will not be reclassified to profit or loss”. With wider industry practice emerging, clearer guidance now being available
and with the present economic situation due to COVID-19, the Company has changed the presentation of these effective cash flow
hedges of inventory presentation as “will be reclassified to profit or loss”, and accordingly reclassified the comparative gain of `695.39
crores and related tax expenses of `129.88 crores for the previous year. The change in presentation is within the statement of other
comprehensive income and does not affect Profit / (loss) for the period and earnings per share.

Consolidated
25. NOTES TO RESERVES AND SURPLUS

(a) Securities premium
The amount received in excess of face value of the equity shares is recognised in Securities premium account.
(b) Retained earnings
Retained earnings are the profits that the Company has earned till date.
(c) Capital redemption reserve
The Indian Companies Act, 2013 (the “Companies Act”) requires that where a company purchases its own shares out of free reserves or securities
premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to a capital redemption reserve account and
details of such transfer shall be disclosed in the Balance Sheet. The capital redemption reserve account may be applied by the company, in paying
up unissued shares of the company to be issued to shareholders of the company as fully paid bonus shares. Tata Motors Limited established this
reserve pursuant to the redemption of preference shares issued in earlier years.
(d) Debenture redemption reserve (DRR)
The Companies Act requires that where a company issues debentures, it shall create a debenture redemption reserve out of profits of the company
available for payment of dividend. The company is required to maintain a Debenture Redemption Reserve of 25% of the value of debentures issued,
either by a public issue or on a private placement basis. The amounts credited to the debenture redemption reserve may not be utilized by the
company except to redeem debentures. No DRR is required for debenture issued after August 16, 2019
(e) Reserve for research and human resource development
In terms of Article 9 of the Act on Special Taxation Restriction in Korea, Tata Daewoo Commercial Vehicle Company Limited (TDCV, a subsidiary
of Tata Motors Limited) is entitled for deferment of tax in respect of expenditures incurred on product development cost subject to fulfillment of
certain conditions, by way of deduction from the taxable income, provided that TDCV appropriates an equivalent amount from “Retained Earnings”
to “Reserve for Research and Human Resource Development”.
The deferment is for a period of three years and from the fourth year onwards one-third of the reserve is offered to tax and an equal amount is then
transferred from the reserve to “Retained earnings available for appropriation”.
(f) Special reserve
The special reserve represents the reserve created by two subsidiaries of Tata Motors Limited pursuant to the Reserve Bank of India Act, 1934
(the “RBI Act”) and related regulations applicable to those companies. Under the RBI Act, a non-banking finance company is required to transfer an
amount not less than 20% of its net profit to a reserve fund before declaring any dividend. Appropriation from this reserve fund is permitted only for
the purposes specified by the RBI.
(g) Earned surplus reserve
Under the Korean commercial code, TDCV is required to appropriate at least 10% of cash dividend declared each year to a legal reserve until such
reserves equal to 50% of capital stock. This reserve may not be utilized for cash dividends, but may only be used to offset against future deficits, if
any, or may be transferred to capital stock.
(h) Hedge Reserve
Effective portion of fair value gain/(loss) on all financial insturments designated in cash flow hedge relationship are accumulated in hedge reserve.
(i) Cost of hedge reserve
Fair value gain/(loss) attributable to cost of hedge on all financials instruments designated in cash flow hedge relationship are accumulated in cost
of hedge reserve.
(j) Capital Reserve
The capital reserve represents the excess of the Company’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent
liabilities over the purchase consideration.
(k) Dividends
The final dividend is recommended by the Board of Directors and is recorded in the books of accounts upon its approval by the Shareholders.For the
year ended March 31, 2021 and 2020 , considering the accumulated losses in the Tata Motors Limited Standalone, no dividend was permitted to be
paid to the members, as per the Companies Act, 2013 and the rules framed thereunder.
(l) Share-based payments reserve
Share-based payments reserve represents amount of fair value, as on the date of grant, of unvested options and vested options not exercised till
date, that have been recognised as expense in the statement of profit or loss till date.
(m) Reserve for Equity instruments through other comprehensive income
Fair value gain/loss arising on equity investment that are designated as held at fair value through Other comprehensive income is included here.
(n) Reserve for Debt instruments through other comprehensive income
Fair value gain/loss arising on debt investment that are designated as held at fair value through Other comprehensive income is included here.

26. LONG-TERM BORROWINGS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Secured:
(a) Privately placed Non-Convertible Debentures 2,769.58 434.33
(b) Collateralized debt obligations 1,260.87 2,058.76
(c) Term loans:
(i) from banks 12,101.89 11,015.94
(ii) from financial institutions 2,992.85 6.50
(d) Others 226.11 188.14
Unsecured:
(a) Privately placed Non-Convertible Debentures 5,151.85 7,991.79
(b) Perpetual Debenture 1,320.15 -
(c) Term loans:
(i) from banks 20,468.26 20,956.80
(ii) other parties 168.19 157.09
(d) Senior notes 46,642.21 39,716.85
(e) Others 10.81 789.42
Total 93,112.77 83,315.62
27. SHORT-TERM BORROWINGS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Secured:
(a) Loans from banks 6,298.57 7,110.88
Unsecured:
(a) Loans from banks 7,019.31 2,386.72
(b) Inter corporate deposits from associates 95.00 46.00
(c) Commercial paper 8,249.91 6,818.93
Total 21,662.79 16,362.53
Collaterals against borrowing

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Inventory 2,998.51 5,797.17
Trade receivables with a carrying amount 186.55 -
Finance receivables 30,574.50 25,237.67
Other financial assets 100.00 28.39
Property, plant and equipment with a carrying amount 6,340.57 1,066.85
Total 40,200.13 32,130.08

Consolidated
Notes :
Nature of Security (on loans including interest accrued thereon) :
Long Term Borrowings
(A) Non convertible debentures
(i) Rated, Listed, Secured, 8.80% Coupon, Non-Convertible Debentures amounting to `997.46 crores included within Long-term
borrowings in note 26 are secured by a pari passu charge by way of the Company’s property, plant and equipment.
(ii) Privately placed non-convertible debentures amounting to `1,772.12 crores included within Long-term borrowings in note 26
and `681.25 crores included within Current maturities of long-term borrowings in note 29 are fully secured by :
(a) First pari passu charge on residential flat of Tata Motors Finance Limited (TMFL) an indirect subsidiary of the Company
(b) Pari - passu charge is created in favour of debenture trustee on :
- All receivables of TMFL arising out of loan and lease transactions,
- All book debts, trade advances forming part of movable property of TML.
(c) Any other security as identified by TMFL and acceptable to the debenture trustee.
(B) Collateralised debt obligations
Collateralised debt obligation represent amount received against finance receivables securitised/assigned, which does not qualify for
derecognition.The repayments are due from financial year ending March 31, 2021 to March 31, 2025.
(C) Long-term loan from banks/financial institution and Government
Amount included in Long- Amount included in Current Maturities
Collateral
Term Borrowings (note 26) of Long-Term Borrowings (note 29)
Term loans from bank
1 9,406.40 4,018.35 Pari-passu charge in favour of the security trustee on all receivables
arising out of loan, lease transactions and trade advances, all other book
debts, receivables from pass through certificates in which company has
invested; and such other current assets as may be identified from time to
time and accepted by the relevant lender/security trustee.
2 2,155.67 985.24 Charge created on all receivables arising out of loan, trade advances, and
all other book debts, receivables from pass through certificates in which
company has invested; and such other current assets as may be identified
from time to time and accepted by the relevant lender.
3 521.07 187.89 First charge over fixed assets procured from its loan/jeep project. Due for
repayment from June 2021 to September 2025
4 18.75 3.57 Pari passu first charge on fixed assets.
Total 12,101.89 5,195.05
Term loan from others
1 2,992.85 - The term loan of `2,992.85 crores from HDFC Ltd, is due for repayment
from the quarter ending June 30, 2022 to quarter ending June 30, 2026,
along with a simple interest of 8.50% p.a. The loan is secured by a charge
over Company's leasehold land together with building structures, plant
and machinery, fixtures and other assets.
2 176.68 - The loan is secured by a second and subservient charge (creation of charge
is under process) over Company's freehold land together with immovable
properties, plant and machinery and other movable assets (excluding stock
and book debts) situated at Sanand plant in the State of Gujarat. The loan
is due for repayment from the quarter ending March 31,2033 to quarter
ending March 31, 2039, along with simple interest at the rate of 0.10% p.a
3 49.43 - The loan is secured by bank gurantee for the due performance of the
conditions as per the terms of the agreement. The loan is due for repayment
from the quarter ending June 30, 2030 to March 31, 2033, along with a
simple interest of 0.01% p.a.
4 - 9.08 Secured by pari passu first charge on fixed assets of Tata Marcopolo
Motors Limited.
5 - 1,108.41 Secured by pari passu first charge on fixed assets.
Total 3,218.96 1,117.49

(D) Short-term borrowings

Loans, cash credits, overdrafts and buyers line of credit from banks are secured by hypothecation of existing current assets of the
Company viz. stock of raw materials, stock in process, semi-finished goods, stores and spares not relating to plant and machinery
(consumable stores and spares), bills receivable and book debts including receivable from hire purchase / leasing and all other
moveable current assets except cash and bank balances, loans and advances of the Company both present and future.
LONG-TERM BORROWINGS: TERMS
(A) Senior notes (Euro MTF listed debt)

The senior notes of Jaguar Land Rover Automotive Plc (JLR) are listed on the Euro MTF market, which is a listed market regulated by
the Luxembourg Stock Exchange.
Details of the tranches of the senior notes outstanding are as follows:
(` in crores)
Amount As at As at
Particulars Currency
5.875% Senior Notes due 2028 USD 650 4,708.24 -
4.500% Senior Notes due 2027 USD 500 3,875.56 4,234.69
6.875% Senior Notes due 2026 EUR 500 4,339.10 4,219.14
3.875% Senior Notes due 2023 GBP 400 4,019.38 3,725.82
5.000% Senior Notes due 2022 GBP 400 4,022.51* 3,725.31
2.750% Senior Notes due 2022 GBP 300 - 2,800.49
43,533.42 36,118.71
* Classified as other current liabilities being maturity before March 31, 2022.
(B) Senior notes (SGX-ST listed debt)
The senior notes of Tata Motors Limited and TML Holdings Pte Ltd are listed on the SGX-ST market, which is a listed market regulated
by the Singapore Stock Exchange.
Details of the tranches of the senior notes outstanding at March 31, 2021 are as follows:
(` in crores)
Amount As at As at
Particulars: Currency
4.000% Senior Notes due 2023 GBP 98 958.19 -
5.750% Senior Notes due 2021 USD 300 2,193.52* 2,267.82
4.625% Senior Notes due 2020 USD 262.532 - 1,986.28
9,324.82 8,384.90
* Classified as other current liabilities being maturity before March 31, 2022.
(C) Non convertible debentures amounting to `7,921.43 crores included within long-term borrowing in note 26 and `4,498.23 crores
included within current maturities of long term borrowings in note 29 bear interest rate ranging from 6.75% to 11.50% and maturity
ranging from April 2021 to March 2029.
(D) Perpetual debenture amounting to `1,320.15 crores included within long-term borrowing in note 26 bear interest rate ranging from
7.75% to 8.75% having simultaneous call/put option after 4/5th year from the date of issuance.

Consolidated
(E ) Loan from banks/ financial institutions consists of:

(i) Term loans amounting to `13,711.96 crores included within long-term borrowings in note 26 and `5,675.28 crores included
within current maturities of long term borrowings in note 29 bearing floating interest rate based on marginal cost of funds lending
rate (MCLR) of respective bank having maturity ranging from September, 2021 to June 2026.
(ii) External commercial borrowings in foreign currencies amounting to `2,068.56 crores included within long-term borrowing in
note 26 and `137.89 crores included within current maturities of long term borrowings in note 29 bearing floating interest rate
based on LIBOR having maturity ranging from May 2023 to June 2025.
(iii) Foreign currency term loan amounting to `9,717.57 crores included within long-term borrowing in note 26 and `2,562.74 crores
included within current maturities of long term borrowings in note 29 bearing floating interest rate that are linked to LIBOR
maturity ranging from September 2021 to July 2024.
(iv) Foreign currency syndicate loan amounting to `7,240.25 crores included within long-term borrowing in note 26 bearing floating
interest rate that are linked to LIBOR maturity ranging from October 2022 to January 2025.
(v) The term loan of `2,992.85 crores from HDFC Ltd, included within long-term borrowing in note 26 is due for repayment from the
quarter ending June 30, 2022 to quarter ending June 30, 2026, along with a simple interest of 8.50% p.a. The loan is secured by
a charge over Company’s leasehold land together with building structures, plant and machinery, fixtures and other assets.
(F) Short Term Borrowings : Terms
(i) Short-term loan from banks and other parties(financial institutions) consits of cash credit, overdrafts, short term loan, bill
discounting amounting to `7,842.93 crores bearing fixed rate of interest ranging from 5.98% to 7.00% and `5,474.95 crores bear
floating rate of interest based on MCLR of respective banks and other benchmark rates.
(ii) Commercial paper are unsecured short term papers issued at discount bearing no coupon interest. The yield on commercial paper
issued by the Company ranges from 6.83 % to 7.33 %.
(G) Reconciliation of movements of liabilities to cash flows arising from financing activities
(` in crores)
Short-term Long-term
Total
borrowings borrowings
Balance at April 1, 2019 20,150.26 85,851.61 106,001.87
Foreign exchange 12.23 4,673.44 4,685.67
Amortisation / EIR adjustment of prepaid borrowing costs (net) (67.21) 175.50 108.29
Balance at March 31, 2020 16,362.53 102,447.99 118,810.52
Foreign exchange 265.32 506.22 771.54
Amortisation / EIR adjustment of prepaid borrowing costs (net) (149.01) 274.76 125.75
Balance at March 31, 2021 21,662.79 114,241.72 135,904.51

28. OTHER FINANCIAL LIABILITIES – NON-CURRENT
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(b) Liability towards employee separation scheme 132.67 75.83
(c) Option Premium Liability 273.44 397.41
(d) Others 90.81 129.36
Total 2,556.35 3,858.48
29. OTHER FINANCIAL LIABILITIES – CURRENT
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Current maturities of long-term borrowings 21,128.95 19,132.37
(b) Interest accrued but not due on borrowings 1,602.80 1,285.10
(c) Liability towards vehicles sold under repurchase arrangements 3,622.88 4,483.38
(d) Liability for capital expenditure (Refer note 2 below) 5,189.24 6,403.22
(e) Deposits and retention money 604.89 537.55
(f) Derivative financial instruments 2,420.18 4,280.60
(g) Liability towards Investors Education and Protection Fund under Section 125 of the Companies Act, 5.28 5.42
2013 (IEPF) not due
(h) Option Premium Liability 110.33 91.87
(i) Others 170.04 324.49
Total 34,854.59 36,544.00
Notes:
1) Current maturities of long term borrowings consist of :
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(i) Privately placed Non-Convertible Debentures (Secured) 681.25 1,452.52
(ii) Privately placed Non-Convertible Debentures (Unsecured) 3,816.98 2,020.82
(iii) Collateralised debt obligation (Unsecured) 1,712.78 2,171.18
(iv) Senior Notes (Unsecured) 6,216.03 4,786.77
(v) Term loans from banks and others (Secured) 6,312.54 3,698.44
(vi) Term loans from banks and others (Unsecured) 2,063.37 5,002.64
(vii) Others 326.00 -
Total 21,128.95 19,132.37
2) Includes `22.48 crores outstanding as at March 31, 2021 towards principal and interest provision on dues of micro enterprises and
small enterprises as per MSMED ACT 2006.

Consolidated
30. PROVISIONS
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Non-current
(a) Employee benefits obligations 979.99 1,126.61
(b) Product warranty 11,187.88 11,387.41
(c) Legal and product liability 717.36 506.59
(d) Provision for residual risk 425.13 1,064.83
(e) Provision for environmental liability 225.59 160.66
(f) Provision for Onerous Contracts and related supplier claims - 414.75
(g) Other provisions 70.81 75.84
Total 13,606.76 14,736.69
Current
(a) Employee benefit obligations 1,071.93 255.54
(b) Product warranty 7,415.99 7,909.78
(c) Legal and product liability 1,995.82 1,163.07
(d) Provision for residual risk 242.25 572.36
(e) Provision for environmental liability 35.15 45.16
(f) Provision for Onerous Contracts and related supplier claims 117.44 362.25
(g) Restructuring Provision 1,951.92 -
(h) Other provisions 17.53 20.88
Total 12,848.03 10,329.04
(` in crores)
Year ended March 31, 2021
Provision for
Provision for
Product Legal and Provision for Restructuring Onerous Contract
environmental
warranty product Liability residual risk Provision and related
liability
supplier claims
Balance at the beginning 19,297.19 1,669.66 1,637.19 205.82 - 777.00
Provision made/(reversed) during the year 6,088.41 1,447.86 (524.99) 54.25 1,951.92 (659.56)
Provision used during the year (8,329.35) (561.09) (428.47) (18.06) - -
Impact of unwind of discounting 279.15 - - - - -
Impact of foreign exchange translation 1,268.47 156.75 (16.35) 18.73 - -
Balance at the end 18,603.87 2,713.18 667.38 260.74 1,951.92 117.44
Current 7,415.99 1,995.82 242.25 35.15 1,951.92 117.44
Non-current 11,187.88 717.36 425.13 225.59 - -
31. OTHER NON-CURRENT LIABILITIES
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Contract liabilities (refer note below) 4,847.70 5,015.77
(b) Government grants 3,308.75 3,332.05
(c) Employee benefits obligations 4,091.75 341.64
(d) Others 64.38 70.06
Total 12,312.58 8,759.52

32. OTHER CURRENT LIABILITIES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Contract liabilities (refer note below) 5,735.93 4,256.63
(b) Government grants 750.34 154.46
(c) Statutory dues (VAT, Excise, Service Tax, GST, Octroi etc) 3,729.69 3,655.03
(d) Others 227.22 899.83
Total 10,443.18 8,965.95
Note:
March 31, 2021 March 31, 2020
(a) Opening contract liabilities 9,272.40 9,250.47
Amount recognised in revenue (3,822.93) (4,466.72)
Amount received in advance during the year 4,515.15 4,255.15
Amount refunded to customers (6.36) (28.15)
Currency translation 625.37 261.65
Closing contract liabilities 10,583.63 9,272.40

March 31, 2021 March 31, 2020
b) Contract liabilities include
Advances received from customers Current 2,418.27 1,125.36
Deferred revenue Current 3,317.66 3,131.27
Non-current 4,847.70 5,015.77
Total contract liabilities 10,583.63 9,272.40
Government grants include:
(i) Government incentives includes `157.75 crores as at March 31, 2021 (`148.11 crores as at March 31, 2020) grants relating to property, plant
and equipment related to duty saved on import of capital goods and spares under the 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 such commitments are
not met, the Company would be required to pay the duty saved along with interest to the regulatory authorities.
(ii) `3,901.33 crores as at March 31, 2021 (`3,269.11 crores as at March 31, 2020) relating to Research and Development Expenditure Credit
(RDEC) on qualifying expenditure incurred since April 1, 2013.
33. REVENUE FROM OPERATIONS

(` in crores)
March 31, 2021 March 31, 2020
(a) Sale of products (refer note 1 and 2 below)
(i) Sale of vehicles 206,418.72 218,982.73
(ii) Sale of spare parts 24,419.08 24,099.47
(iii) Sale of miscellaneous products 8,711.60 8,315.24
Total Sale of products 239,549.40 251,397.44
(b) Sale of services 3,374.73 3,384.14
(c) Finance revenues 4,048.04 3,812.78
246,972.17 258,594.36
(d) Other operating revenues 2,822.58 2,473.61
Total 249,794.75 261,067.97
Note:
(1) Includes exchange (loss) (net) on hedges reclassified from hedge reserve to statement of profit or (980.14) (4,814.06)
loss
(2) Includes variable marketing expenses netted off against revenue (29,388.88) (48,699.82)

Consolidated
34.OTHER INCOME
(` in crores)
March 31, 2021 March 31, 2020
(a) Interest income 492.53 1,170.12
(b) Dividend income from investments measured at FVTOCI 18.37 21.13
(c) Profit on sale of investments measured at FVTPL 194.24 187.34
(d) Incentives (refer note below) 1,918.14 1,983.61
(e) Fair value gain /(loss) on investments measured at FVTPL 19.91 (389.05)
Total 2,643.19 2,973.15
Note:
Incentives include exports and other incentives of `547.79 crores and `612.65 crores, for the year ended March 31, 2021 and 2020, respectively and
`1,370.35 crores and `1,090.40 crores, for the year ended March 31, 2021 and 2020, respectively received by foreign subsidiaries on Tax credit on
qualifying expenditure for research and development.
35. EMPLOYEE BENEFITS EXPENSE

(` in crores)
March 31, 2021 March 31, 2020
(a) Salaries, wages and bonus (refer note below) 21,611.09 24,290.30
(b) Contribution to provident fund and other funds 2,764.34 2,720.14
(c) Staff welfare expenses 3,273.05 3,428.16
Total 27,648.48 30,438.60
Employee benefits expense for the year ended March 31, 2021 is net of Government grants received by certain subsidiary companies
amounting to `1,833.01 crores (£ 188.89 million).
Employee Stock Options
The Company has alloted share based incentives to certain employees during the year ended March 31, 2019, under Tata Motors Limited
Employee Stock Options Scheme 2018, approved by Nomination and Remuneration Committee (NRC).
As per the scheme, the number of shares that will vest is conditional upon certain performance measures determined by NRC. The
performance conditions are 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 3 years from date
of grant up to 5 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.
(` in crores)
March 31, 2021 March 31, 2020
Options outstanding at the beginning of the year 7,222,897 7,812,427
Granted during the year - -
Forfeited/Expired during the year (418,894) (589,530)
Exercised during the year - -
Outstanding at the end of the year 6,804,003 7,222,897
Number of shares to be issued for outstanding options (conditional on performance
measures)
Maximum 1,02,06,005 1,08,34,346
Minimum 34,02,002 36,11,449
The Company has estimated fair value of options granted during the year using Black Scholes model. The following assumptions were used
for calculation of fair value of options granted during the year ended March 31, 2021.
Estimate
Assumption factor Year ended Year ended
March 31, 2021 March 31, 2020
Risk free rate 7%-8% 7%-8%
Expected life of option 2-4 years 3-5 years
Expected volatility 33%- 37% 33%- 37%

36. FINANCE COSTS

(` in crores)
March 31, 2021 March 31, 2020
(a) Interest 8,405.10 7,680.29
Less: Interest capitalised* (1,136.17) (1,446.63)
Add: Exchange fluctuation considered as interest cost - 56.34
7,268.93 6,290.00
(b) Discounting charges 828.24 953.33
Total 8,097.17 7,243.33
* Represents borrowing costs capitalized during the year on qualifying assets (property plant and equipment and product development).
The weighted average rate for capitalization of interest relating to general borrowings was approximately 5.26% and 5.51% for the years ended
March 31, 2021 and 2020, respectively.
37. OTHER EXPENSES

(` in crores)
March 31, 2021 March 31, 2020
(a) Processing charges 965.67 1,070.05
(b) Consumption of stores & spare parts 1,279.05 1,500.71
(c) Power & fuel 1,112.87 1,264.95
(d) Information Technology (IT) related/Computer expenses 2,720.09 2,372.22
(e) Engineering expense 3,308.36 6,598.53
(f) MTM (gain)/loss on commodity derivatives (1,382.09) 688.18
(g) Warranty and product liability expenses * 7,609.02 10,884.59
(h) Freight, transportation, port charges etc. 5,715.79 6,484.39
(i) Publicity 4,384.63 7,614.24
(j) Allowances for trade and other receivables 20.69 102.59
(k) Allowances for finance receivables 957.93 660.21
(l) Works operation and other expenses (note below) 14,229.96 17,846.80
Total 40,921.97 57,08 7.46
* Net of estimated recovery from suppliers (484.92) (65.60)
Note:

March 31, 2021 March 31, 2020
Works operation and other expenses :
(a) Auditors' remuneration
(i) Audit fees 69.97 69.54
(ii) Tax Audit fees 1.58 1.40
(iii) All other fees* 8.17 5.67
TOTAL 79.72 76.61
* Includes `6.40 crores (`4.28 crores as at March 31, 2020) fees paid for issuance of Seniors Notes.
(b) Works operation and other expenses include remuneration payable to non- executive independent directors aggregating `1.70 crores
which is subject to approval of the shareholders, which the Company proposes to obtain in the forthcoming Annual General Meeting, in

Consolidated
38. EMPLOYEE BENEFITS

Defined Benefit Plan
Pension and post retirement medical plans
The following table sets out the funded and unfunded status and the amounts recognized in the financial statements for the pension and the
post retirement medical plans in respect of Tata Motors, its Indian subsidiaries and joint operations:
(` in crores)
Pension benefits Post retirement medical Benefits
2021 2020 2021 2020
Change in defined benefit obligations :
Defined benefit obligation, beginning of the year 1,308.46 1,168.26 168.98 153.40
Current service cost 90.12 82.77 7.87 8.17
Interest cost 85.38 85.95 10.80 11.30
Actuarial (gains) / losses arising from changes in demographic (2.46) 3.55 - (0.67)
assumptions
adjustments
Benefits paid from plan assets (124.19) (83.03) - -
Benefits paid directly by employer (6.86) (5.89) (9.23) (7.71)
Past service cost - Plan amendment - (5.17) - -
Curtailment - 0.03 - -
Divestment - 0.21 - -
Defined benefit obligation, end of the year 1,337.41 1,308.46 184.49 168.98

Fair value of plan assets, beginning of the year 1,128.22 1,025.04 - -
Interest income 77.67 80.45 - -
Return on plan assets, 35.59 (18.04) - -
(excluding amount included in net Interest cost)
Employer’s contributions 114.02 123.80 - -
Benefits paid (124.19) (83.03) - -
Fair value of plan assets, end of the year 1,231.31 1,128.22 - -
Amount recognized in the balance sheet consists of:

Present value of defined benefit obligation 1,337.41 1,308.46 184.49 168.98
Fair value of plan assets 1,231.31 1,128.22 - -
Asset ceiling (2.92) - - -
Net liability (103.18) (180.24) (184.49) (168.98)
Non–current assets 42.67 2.11 - -
Non–current liabilities (145.85) (182.35) (184.49) (168.98)
Net liability (103.18) (180.24) (184.49) (168.98)

Total amount recognized in other comprehensive income consists of:

(` in crores)
Remeasurements (gains) / losses 101.93 150.10 (35.24) (41.31)
101.93 150.10 (35.24) (41.31)
Information for funded plans with a defined benefit obligation in excess of plan assets:
(` in crores)
Pension benefits
As at As at
March 31, 2021 March 31, 2020
Defined benefit obligation 124.78 1,141.98
Fair value of plan assets 112.49 1,091.60
Information for funded plans with a defined benefit obligation less than plan assets:
(` in crores)
Pension benefits
As at As at
March 31, 2021 March 31, 2020
Defined benefit obligation 1,073.23 34.51
Fair value of plan assets 1,118.81 36.61
Information for unfunded plans:

(` in crores)
Defined benefit obligation 139.40 131.97 184.49 168.98
Net pension and post retirement medical cost consist of the following components:
(` in crores)
For the year ended For the year ended For the year ended For the year ended
Service cost 90.12 82.77 7.87 8.17
Net interest cost 8.31 5.50 10.80 11.30
Past service cost - Plan amendment - (5.17) - -
Net periodic cost 98.43 83.10 18.67 19.47

Consolidated
Other changes in plan assets and benefit obligation recognized in other comprehensive income.
(` in crores)
For the year ended For the year ended For the year ended For the year ended
Remeasurements
Return on plan assets, (excluding amount included in net (35.59) 18.04 - -
Interest expense)
Actuarial (gains)/losses arising from changes in demographic (2.46) 3.55 - (0.67)
assumptions
Asset ceiling 2.92 - - -
Actuarial (gains)/losses arising from changes in experience (12.98) 24.66 0.28 (5.42)
adjustments on plan liabilities
Total recognized in other comprehensive income (48.17) 83.37 6.07 3.82
Total recognized in consolidated statement of 50.26 166.47 24.74 23.29

The assumptions used in accounting for the pension and post retirement medical plans are set out below:
(` in crores)
March 31,2021 March 31, 2020 March 31,2021 March 31,2020
Discount rate 6.00% - 6.90% 6.10%- 6.90% 6.90% 6.90%
Rate of increase in compensation level of covered employees 5.75% - 10.00% 5.00% - 10.00% NA NA
Increase in health care cost NA NA 6.00% 6.00%
Plan Assets
The fair value of Company’s pension plan asset as of March 31, 2021 and 2020 by category are as follows:
(` in crores)
Pension benefits
Plan assets as of Plan assets as of
March 31, 2021 March 31, 2020
Asset category:
Cash and cash equivalents 4.50% 5.80%
Debt instruments (quoted) 64.20% 67.28%
Debt instruments (unquoted) 0.50% 0.71%
Equity instruments (quoted) 5.20% 2.61%
Deposits with Insurance companies 25.60% 23.59%
100.00% 100.00%
The Company’s policy is driven by considerations of maximizing 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.
The weighted average duration of the defined benefit obligation as at March 31, 2021 is 13.05 years (2020 : 13.97 years)
The Company expects to contribute `100.94 crores to the funded pension plans in the year ending March 31, 2022.

of 1% in the assumed rate of discount rate, salary escalation and health care cost:
Impact on defined benefit

Assumption Change in assumption Impact on service cost and interest cost
obligation
Discount rate Increase by 1% Decrease by `103.55 crores Decrease by `118.52 crores
Decrease by 1% Increase by `141.69 crores Increase by `137.30 crores
Salary escalation rate Increase by 1% Increase by `110.01 crores Increase by `106.55 crores
Decrease by 1% Decrease by `97.82 crores Decrease by `95.67 crores
Health care cost Increase by 1% Increase by `21.15 crores Increase by `22.49 crores
Provident Fund
The following tables set out the funded status of the defined benefit provident fund plan of Tata Motors limited and the amounts recognized
in the Company’s financial statements.
(` in crores)
March 31, 2021 March 31, 2020
Change in benefit obligations:
Defined benefit obligations at the beginning 4,076.38 3,693.92
Employee contribution 316.65 307.34
Acquisitions (credit) / cost (125.66) (140.30)
Interest expense 345.74 312.54
Benefits paid (241.34) (235.68)
Defined benefit obligation, end of the year 4,559.65 4,076.38

Fair value of plan assets at the beginning 4,058.50 3,706.28
Acquisition Adjustment (125.66) (140.30)
Return on plan assets excluding amounts included in interest income (14.73) (30.23)
Contributions (employer and employee) 451.24 439.68
Benefits paid (241.34) (235.68)
Fair value of plan assets at the end 4,470.21 4,058.50
Amount recognized in the balance sheet consists of:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Fair value of plan assets 4,470.21 4,058.50
Present value of defined benefit obligation 4,559.65 4,076.38
(89.44) (17.88)
Effect of asset ceiling (0.01) (2.99)
Net liability (89.45) (20.87)

Consolidated
Total amount recognised in other comprehensive income consists of:

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Remeasurements (gains) / losses 84.18 18.03
84.18 18.03
Net periodic cost for Provident Fund consist of the following components:
(` in crores)
For the Year ended For the Year ended
March 31, 2021 March 31, 2020
Net interest cost / (income) 3.54 (6.22)
Net periodic cost 140.02 127.78
(` in crores)
For the Year ended For the Year ended
March 31, 2021 March 31, 2020
Remeasurements
Adjustments for limits on net asset 0.01 (16.77)
Total recognised in other comprehensive income 66.14 18.03
Total recognised in statement of profit and loss and other comprehensive income 206.16 145.81
The assumptions used in determining the present value obligation of the Provident Fund is set out below:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Expected rate of return on plan assets 8.20% to 8.40% 8.20% to 8.60%
Remaining term to maturity of portfolio 26.77 26.91
The breakup of the plan assets into various categories is as follows:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Central and State government bonds 45.02% 44.16%
Public sector undertakings and Private sector bonds 33.76% 34.14%
Others 21.22% 21.68%
Total 100.0% 100.0%

The asset allocation for plan assets is determined based on investment criteria prescribed under the relevant regulations.
As at March 31, 2021, the defined benefit obligation would be affected by approximately `168.85 crores on account of a 0.5% decrease in
the expected rate of return on plan assets.
The Company expects to contribute `143.30 crores to the defined benefit provident fund plan in the year ending March 31, 2022.
Severance indemnity plan
Severance indemnity is a funded plan of Tata Daewoo Commercial Vehicles Limited (TDCV), a subsidiary of Tata Motors Limited.
The following table sets out, the amounts recognized in the financial statements for the severance indemnity plan.
(` in crores)
As at As at
Particulars
March 31, 2021 March 31, 2020
Change in defined benefit obligation:
Defined benefit obligation, beginning of the year 284.75 422.33
Interest cost 4.57 6.81
Actuarial (gains)/losses arising from changes in financial assumptions (21.35) 12.38
Actuarial (gains) arising from changes in experience adjustments on plan liabilities (19.66) (59.87)
Actuarial (gains) / losses arising from changes in demographic assumptions 15.04 -
Benefits paid from plan assets (19.09) (132.92)
Benefits paid directly by employer (1.94) (17.43)
Foreign currency translation 14.09 0.73
Defined benefit obligation, end of the year 311.08 284.75
Fair value of plan assets, beginning of the year 231.73 360.07
Remeasurements (loss)
Return on plan assets, (excluding amount included in net Interest expense) (1.59) (1.52)
Employer’s contributions 38.44 -
Benefits paid (19.09) (132.92)
Foreign currency translation 11.56 0.34
Fair value of plan assets, end of the year 265.06 231.73
Amount recognized in the balance sheet consist of:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Present value of defined benefit obligation 311.08 284.75
Fair value of plan assets 265.06 231.72
Net liability (46.02) (53.02)
Non- current liabilities (46.02) (53.02)
Total amount recognized in other comprehensive income for severance indemnity consists of:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Remeasurements (gains) / losses (125.99) (101.61)
(125.99) (101.61)

Consolidated
Net severance indemnity cost consist of the following components:

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Net interest cost 0.56 1.05
Net periodic pension cost 55.23 53.77
Other changes in plan assets and benefit obligation recognized in other comprehensive income for severance indemnity
plan:
(` in crores)
March 31, 2021 March 31, 2020
Actuarial losses arising from changes in financial assumptions (21.35) 12.38
Actuarial (gains) arising from changes in experience adjustments on plan liabilities (19.66) (59.87)
Actuarial (gains) / losses arising from changes in demographic assumptions 15.04 -
Total recognized in other comprehensive income (24.38) (45.97)
Total recognized in statement of operations and other comprehensive income 30.85 7.80
The assumptions used in accounting for the Severance indemnity plan is set out below:
(` in crores)
March 31, 2021 March 31, 2020
Rate of increase in compensation level of covered employees 3.5% 3.5%
of 1% in the assumed rate of discount rate, salary escalation rate:
Assumption Change in assumption Impact on scheme liabilities Impact on service cost and interest cost
Discount rate Increase by 1% Decrease by `38.00 crores Decrease by `12.57 crores
Decrease by 1% Increase by `44.97 crores Increase by `14.14 crores
Salary escalation rate Increase by 1% Increase by `43.85 crores Increase by `15.18 crores
Severance indemnity plans asset allocation by category is as follows:

(` in crores)
March 31, 2021 March 31, 2020
Deposit with banks 100% 100%

The weighted average duration of the defined benefit obligation as at March 31, 2021 is 10.79 years (2020 : 11.05 years)
The Company expects to contribute `3.24 crores to the funded severance indemnity plans in the year ending March 31, 2022.
Jaguar Land Rover Pension plan
Jaguar Land Rover Ltd UK, have pension arrangements providing employees with defined benefits related to pay and service as set out in
the rules of each fund.
The UK defined benefit schemes are administered by a separate fund that is legally separated from the Company. The trustees of the pension
schemes are required by law to act in the interest of the fund and of all relevant stakeholders in the scheme, is responsible for the investment
policy with regard to the assets of the schemes and all other governance matters. The board of trustees must be composed of representatives
of the Company and plan participants in accordance with the plan’s regulations.
Through its defined benefit pension plans the Company is exposed to a number of risks, the most significant of which are detailed below :
Asset volatility
The plan liabilities are calculated using a discount rate set with references to corporate bond yields; if plan assets under perform compared
to the corporate bonds discount rate, this will create or increase a deficit. The defined benefit plans hold a significant proportion of equity
type assets, which are expected to outperform corporate bonds in the long-term while providing volatility and risk in the short-term.
As the plans mature, the Company intends to reduce the level of investment risk by investing more in assets that better match the liabilities.
However, the Company believes that due to the long-term nature of the plan liabilities and the strength of the supporting group, a level of
continuing equity type investments is an appropriate element of the Company’s long term strategy to manage the plans efficiently.
Changes in bond yields
A decrease in corporate bond yields will increase plan liabilities, although this is expected to be partially offset by an increase in the value of
the plans’ bond holdings and interest rate hedging instruments.
Inflation risk
Some of the Company’s pension obligations are linked to inflation, and higher inflation will lead to higher liabilities (although, in most cases,
caps on the level of inflationary increases are in place to protect the plan against high inflation). The plans hold a significant proportion
of assets in index linked gilts, together with other inflation hedging instruments and also assets which are more closely correlated with
inflation. However an increase in inflation will also increase the deficit to some degree.

Consolidated
Life expectancy
The majority of the plan’s obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an
increase in the plan’s liabilities. This is particularly significant in the UK defined benefit plans, where inflationary increases result in higher
sensitivity to changes in life expectancy.
The following table sets out the disclosure pertaining to employee benefits of Jaguar Land Rover Limited
(` in crores)
Pension benefits
As at As at
March 31, 2021 March 31, 2020
Change in defined benefit obligation:
Defined benefit obligation, beginning of the year 72,842.15 78,266.49
Service cost 1,271.52 1,198.00
Interest cost 1,613.80 1,832.79
Actuarial (gains)/losses arising from changes in demographic assumptions (203.50) 59.49
Actuarial losses/(gains) arising from changes in financial assumptions 8,431.18 (4,739.02)
Actuarial (gains) arising from changes in experience adjustments on plan liabilities (726.36) (1,256.32)
Past service cost/(credit) 155.95 39.66
Benefits paid (4,282.44) (4,908.91)
Member contributions 11.64 13.34
Foreign currency translation 5,848.02 2,336.63
Defined benefit obligation, end of the year 84,961.96 72,842.15

Fair value of plan assets, beginning of the year 76,404.42 72,240.10
Interest Income 1,653.39 1,713.91
Remeasurements gains / (losses)
Return on plan assets, (excluding amount included in net Interest expense) 215.10 2,926.69
Employer’s contributions 1,431.36 2,079.29
Members contributions 11.26 13.34
Benefits paid (4,282.44) (4,908.91)
Expenses paid (215.95) (141.68)
Foreign currency translation 5,854.32 2,481.68
Fair value of plan assets, end of the year 81,071.46 76,404.42
The actual return on the schemes’ assets for the year ended March 31, 2021 was `1,863.20 crores (2020: `4,641.68 crores)
(` in crores)
Pension benefits
Amount recognized in the balance sheet consist of: As at As at
March 31, 2021 March 31, 2020
Present value of defined benefit obligation
Fair value of plan Assets 84,961.96 72,842.15
Net (liability) /Assets 81,071.46 76,404.42
(3,890.50) 3,562.27
Amount recognized in the balance sheet consist of:
Non- current assets 5.04 3,820.14
Non -current liabilities (3,895.54) (257.87)
Net (liability) /Assets (3,890.50) 3,562.27

Total amount recognized in other comprehensive income

(` in crores)
Pension benefits
As at As at
March 31, 2021 March 31, 2020
Remeasurements (gains) / losses (748.98) (8,035.20)
(748.98) (8,035.20)
Net pension and post retirement cost consist of the following components:
(` in crores)
Pension benefits
As at As at
March 31, 2021 March 31, 2020
Current service cost 1,271.52 1,198.00
Past service cost 155.95 39.66
Administrative expenses 215.95 141.68
Net interest cost (Including onerous obligations) (39.59) 118.88
Net periodic pension cost 1,603.83 1,498.22
Amount recognized in other comprehensive income
(` in crores)
Pension benefits
As at As at
March 31, 2021 March 31, 2020
Actuarial (gains) / losses arising from changes in demographic assumptions (203.50) 59.49
Actuarial losses / (gains) arising from changes in financial assumptions 8,431.18 (4,739.02)
Actuarial (gains) arising from changes in experience adjustments on plan liabilities (726.36) (1,256.32)
Return on plan assets, (excluding amount included in net Interest expense) (215.10) (2,926.69)
Total recognized in other comprehensive income 7,286.22 (8,862.54)
Total recognized in statement of profit and loss and other comprehensive income 8,890.05 (7,364.32)
The assumptions used in accounting for the pension plans are set out below:
(` in crores)
March 31, 2021 March 31, 2020
Expected rate of increase in benefit revaluation of covered employees 2.2% 2.0%
RPI Inflation rate 3.1% 2.6%
For the valuation as at March 31, 2021, the mortality assumptions used are the Self- Administered Pension Schemes (“SAPS”) table, in
particular S2PxA tables and the Light Table for members of the Jaguar Executive Pension Plan.
For the Jaguar Pension Plan, scaling factor of 111% to 117% have been used for male members and scaling factor of 101% to 112% have
been used for female members.
For the Land Rover Pension Scheme, scaling factor of 107% to 111% have been used for male members and scaling factor of 101% to 109%
have been used for female members.
For the Jaguar Executive Pension Plan, an average scaling factor of 94% has been used for male members and an average scaling factor of
84% has been used for female members.

Consolidated
For the valuation as at March 31, 2020, the mortality assumptions used are the SAPS table, in particular S2PxA tables and the Light Table
for members of the Jaguar Executive Pension Plan.
For the Jaguar Pension Plan, scaling factor of 111% to 117% have been used for male members and scaling factor of 101% to 112% have
been used for female members.
For the Land Rover Pension Scheme, scaling factor of 107% to 111% have been used for male members and scaling factor of 101% to 109%
have been used for female members.
For the Jaguar Executive Pension Plan, an average scaling factor of 94% has been used for male members and an average scaling factor of
84% has been used for female members.
For the 2021 year end calculations there is an allowance for future improvements in line with the CMI (2020) projections and an allowance
for long-term improvements of 1.25 per cent per annum and a smoothing parameter of 7.5, (2020: CMI (2019) projections with 1.25 per cent
per annum improvements and a smoothing parameter of 7.5))
A past service cost of `87.34 crores has been recognised in the year ended 31 March 2021 following a further High Court ruling, published
on 20 November 2020, that provided clarification on the obligations of pension plan trustees to equalise past transfer values allowing for the
effect of unequal Guaranteed Minimum Pensions (‘GMP’) between May 17, 1990 and April 5, 1997 (“GMP equalisation”).
A further past service cost of `67.93 crores was also recognised in the year ended 31 March 2021. This reflects benefit improvements for
certain members as part of the Group restructuring programme that commenced in the year ended March 31, 2021.
A past service cost of `37.41 crores was recognised in the year ended March 31, 2020. This reflects benefit improvements for certain
members as part of the Group restructuring programme thatcommenced in the year ended March 31, 2019.
The assumed life expectations on retirement at age 65 are (years)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Retiring today :
Males 21.0 21.0
Females 23.3 23.2
Retiring in 20 years :
Males 22.4 22.5
Females 25.2 25.2

Pension plans asset allocation by category is as follows:

(` in crores)
Quoted Unquoted Total Quoted Unquoted Total
Equity Instruments
Information Technology 1,345.22 - 1,345.22 1,159.83 - 1,159.83
Energy 107.82 - 107.82 93.53 - 93.53
Manufacturing 753.73 - 753.73 654.74 - 654.74
Financials 484.68 - 484.68 420.91 - 420.91
Others 2,690.44 - 2,690.44 2,340.83 - 2,340.83
5,381.89 - 5,381.89 4,669.84 - 4,669.84
Debt Instruments
Government 17,263.15 - 17,263.15 18,183.13 - 18,183.13
Corporate Bonds (Investment Grade) 13,877.43 2,076.78 15,954.21 11,645.06 3,255.00 14,900.06
Corporate Bonds (Non Investment Grade) 944.17 9,746.59 10,690.76 - 7,015.10 7,015.10
32,084.75 11,823.37 43,908.12 29,828.19 10,270.10 40,098.29
Property Funds
UK - 3,058.23 3,058.23 - 2,553.49 2,553.49
Other - 2,020.35 2,020.35 - 2,235.48 2,235.48
- 5,078.58 5,078.58 - 4,788.97 4,788.97
Cash and cash equivalents 2,673.31 - 2,673.31 6,344.53 - 6,344.53

Other
Hedge Funds - 4,993.94 4,993.94 - 4,442.89 4,442.89
Private Markets - 8,303.08 8,303.08 - 5,256.64 5,256.64
Alternatives 574.36 5,889.75 6,464.11 - 5,555.96 5,555.96
574.36 19,186.77 19,761.13 - 15,255.49 15,255.49
Derivatives
Foreign exchange contracts - 152.16 152.16 - (336.72) (336.72)
Interest Rate and inflation swaps - 3,632.60 3,632.60 - 5,097.64 5,097.64
Equity protection derivatives - 483.67 483.67 - 486.38 486.38
- 4,268.43 4,268.43 - 5,247.30 5,247.30
Total 40,714.31 40,357.15 81,071.46 40,842.56 35,561.86 76,404.42
*determined on the basis of quoted prices for identical assets or liabilities in active markets.
As at March 31, 2021, the schemes held Gilt Repos. The net value of these transactions is included in the value of government bonds in the
table above. The value of the funding obligation for the Repo transactions is `20,727.47 crores at March 31, 2021 (2020: `24,683.78 crores,
2019: `14,292.09 crores).
The sensitivity analysis below is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely
to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to
significant actuarial assumptions the same methods (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting period) has been applied as when calculating the pension liability recognised within the consolidated
balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous periods.
Assumption Change in assumption Impact on scheme liabilities Impact on service cost

Discount rate Increase/decrease by 0.25% Decrease/increase by `4,151.54 crores Decrease/increase by `70.54 crores
Inflation rate Increase/decrease by 0.25% Increase/decrease by `2,307.53 crores Increase/decrease by `40.31 crores
Mortality rate Increase/decrease by 1 year Increase/decrease by `3,012.89 crores Increase/decrease by `40.31 crores
Private Equity holdings have been measured using the most recent valuations, adjusted for cash and currency movements between the
last valuation date and March 31 , 2021. Given the movements in listed equity markets, the valuation of Private Equity holdings may vary
significantly. The value of the Private Equity holdings in the JLR UK Plans included above is `4,564.58 crores as at March 31 , 2021.
Jaguar Land Rover contributes towards the UK defined benefit schemes. The April 5, 2018 valuations were completed in December 2018.
As a result of these valuations it is intended to eliminate the pension scheme funding deficits over the 10 years to March 31, 2028. Whilst
there is currently an additional liability over the projected benefit obligation, based on current legal advice the Group will not be required

Consolidated
to recognise an additional obligation in the future. JLR has taken legal advice considering the documentation of the UK schemes and the
regulatory environment. This confirmed the recoverability of any surplus in the scheme and JLR has based its accounting judgement on this
advice.
In line with the schedule of contributions agreed following the 2018 statutory funding valuations and amended in April 2020, the current
ongoing Group contribution rate for defined benefit accrual is c.21 per cent of pensionable salaries in the UK.
The average duration of the benefit obligation at March 31, 2021 is 19 years (2020: 19 years).
The expected net periodic pension cost for the year ended March 31, 2022 is expected to be `1.541.71 crores. The Group expects to pay
`2,478.83 crores to its defined benefit schemes, in total, for the year ended March 31, 2022.
Deficit contributions are paid in line with the schedule of contributions at a rate of `604.59 crores per year until March 31, 2024 followed by
`251.91 crores per year until March 31, 2028. In addition, contributions previously due for April, May and June 2020 have been re-spread
over FY22. This agreement is reflected in an updated Schedule of Contributions dated April 29, 2020.
Defined contribution plan
The Company’s contribution to defined contribution plans aggregated `1,509.05 crores, `1,030.55 crores for years ended March 31, 2021
and 2020, respectively.
39. COMMITMENTS AND CONTINGENCIES
In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and
assertions and monitors the legal environment on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The
Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in
its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in
the financial statements but does not record a liability in its accounts unless the loss becomes probable.
The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes that none
of the contingencies described below would have a material adverse effect on the Company’s financial condition, results of operations or
cash flows.
Litigation
The Company is involved in legal proceedings, both as plaintiff and as defendant. There are claims which the Company does not believe to be
of material nature, other than those described below.
Income Tax
The Company has ongoing disputes with income tax authorities relating to tax treatment of certain items. These mainly include disallowed
expenses, the tax treatment of certain expenses claimed by the Company as deductions and the computation of, or eligibility of, the Company’s
use of certain tax incentives or allowances.
Most of these disputes and/or disallowances, being repetitive in nature, have been raised by the income tax authorities consistently in most
of the years.
The Company has a right of appeal to the Commissioner of Income Tax (Appeals), or CIT (A), the Dispute Resolution Panel, or DRP, and to
the Income Tax Appellate Tribunal, or ITAT, against adverse decisions by the assessing officer, DRP or CIT (A), as applicable. The income
tax authorities have similar rights of appeal to the ITAT against adverse decisions by the CIT (A) or DRP. The Company has a further right of
appeal to the Bombay High Court or the Hon’ble Supreme Court against adverse decisions by the appellate authorities for matters involving
substantial question of law. The income tax authorities have similar rights of appeal.
As at March 31, 2021, contingent liabilities towards matters and/or disputes pending in appeal amount to `621.35 crores, which includes
`7.82 crores in respect of equity accounted investees (`602.77 crores, which includes `77.23 crores in respect of equity accounted investees
as at March 31, 2020).
Customs, Excise Duty and Service Tax
As at March 31, 2021, there are pending litigations for various matters relating to customs, excise duty and service tax involving demands,
including interest and penalties, of `642.73 crores, which includes `1.05 crores in respect of equity accounted investees (`665.94 crores,
which includes `1.83 crores in respect of equity accounted investees as at March 31, 2020). These demands challenged the basis of valuation
of the Company’s products and denied the Company’s claims of Central Value Added Tax, or CENVAT, credit on inputs. The details of the
demands for more than `100 crores are as follows:
As at March 31, 2021, the Excise Authorities have raised a demand and penalty of `268.27 crores, (`268.27 crores as at March 31, 2020),
due to the classification of certain chassis (as goods transport vehicles instead of dumpers) which were sent to automotive body builders by
the Company, which the Excise Authorities claim requires the payment of the National Calamity Contingent Duty (NCCD). The Company has
obtained a technical expert certificate on the classification. The appeal is pending before the Custom Excise & Service Tax Appellate Tribunal.

Sales Tax
The total sales tax demands (including interest and penalty), that are being contested by the Company amount to `1,421.98 crores, which
includes `8.96 crores in respect of equity accounted investees as at March 31, 2021 (`963.56 crores, which includes `9.64 crores in respect
of equity accounted investees, as at March 31, 2020). The details of the demands for more than `100 crores are as follows:
The Sales Tax Authorities have raised demand of `326.85 crores (`207.80 crores as at March 31, 2020) towards rejection of certain statutory
forms for concessional lower/nil tax rate (Form F and Form C) on technical grounds and few other issues such as late submission, single form
issued against different months / quarters dispatches / sales, etc. and denial of exemption from tax in absence of proof of export for certain
years The Company has contended that the benefit cannot be denied on technicalities, which are being complied with. The matter is pending
at various levels.
The Sales Tax authorities have denied input tax credit and levied interest and penalty thereon due to varied reasons aggregating to `270.50
crores as at March 31, 2021 (`221.77 crores as at March 31, 2020). The reasons for disallowing credit was mainly due to Taxes not paid
by Vendors, incorrect method of calculation of set off as per the department, alleging suppression of sales as per the department etc. The
matter is contested in appeal.
The Sales Tax Authorities have raised demand for Check Post/ Entry Tax liability at various states amouting to `434.59 crores as at March
31, 2021 (`65.81 crores as at March 31, 2020). The Company is contesting this issue.
The Sales Tax Authorities have raised demand of `148.84 crores as at March 31, 2021 (`148.84 as at March 31, 2020) towards full CST
liability on Chassis exported after enroot body building and interest thereon considering as CST sale. The Company has contended that the
Company’s manufacturing plant dispatching chassis for enroot body building to bodybuilders as bill to the Company and ship to bodybuilders
is constituted as export sale after Chassis export. The matter is contested in appeal.
Other Taxes and Dues
Other amounts for which the Company may contingently be liable aggregate to `246.96 crores, which includes `0.77 crores in respect of equity
accounted investees as at March 31, 2021 (`723.57 crores, which includes `16.72 crores in respect of equity accounted investees, as at March 31,
2020).
Other claims
There are other claims against the Company, the majority of which pertain to government body investigations with regards to regulatory compliances,
motor accident claims, product liability claims and consumer complaints. Some of the cases also relate to the replacement of parts of vehicles and/
or the compensation for deficiencies in the services by the Company or its dealers.
The Hon’ble Supreme Court of India (“SC”) by their order dated February 28, 2019, set out the principles based on which allowances paid to the
employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. There are interpretative
challenges and considerable uncertainty, including estimating the amount retrospectively. Pending the directions from the EPFO, the impact for past
periods, if any, is not ascertainable reliably and consequently no financial effect has been provided for in the financial statements. The Company has
complied with this on a prospective basis, from the date of the SC order.
The Company has, consequent to an Order of the Hon’ble Supreme Court of India in the case of R.C.Gupta Ors. Vs Regional Provident Fund Organisation
and Ors., evaluated the impact on its employee pension scheme and concluded that this is not applicable to the Company based on external legal
opinion and hence it is not probable that there will be an outflow of resources. Further a Supreme Court of India bench, allowed the review petitions
filed by the Employees Provident Fund Organisation (EPFO) and decided to reconsider the previous order that permitted grant of Provident Fund
pension on last drawn salary. The Supreme Court has recalled its 2019 order which had paved way for pension on last drawn salary for employees
by removing the current salary ceiling of `15,000.
Commitments
The Company has entered into various contracts with vendors and contractors for the acquisition of plant and machinery, equipment and various
civil contracts of a capital nature amounting to `9,632.52 crores, as at March 31, 2021 (`12,634.91 crores as at March 31, 2020), which are yet to be
executed.
The Company has entered into various contracts with vendors and contractors for the acquisition of intangible assets of a capital nature amounting to
`251.06 crores as at March 31, 2021, (`259.79 crores as at March 31, 2020), which are yet to be executed.
Under the joint venture agreement with Chery Jaguar Land Rover Automotive Co. Limited, the Company is committed to contribute `5,578.50 crores
as at March 31, 2021 (`5,311.40 crores as at March 31, 2020) towards its share in the capital of the joint venture of which `3,877.06 crores (`3,691.42
crores as at March 31, 2020) has been contributed as at March 31, 2021. As at March 31, 2021, the Company has an outstanding commitment of
`1,701.44 crores (`1,619.98 crores as at March 31, 2020).
The Company has contractual obligation towards Purchase Commitment for `23,766.43 crores as at March 31, 2021 (`19,165.64 crores as on March
31, 2020).

Consolidated
40. CAPITAL MANAGEMENT

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the
Company.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment
plans. The funding requirements are met through equity, convertible and non-convertible debt securities, senior notes and other long-term/short-
term borrowings. The Company’s policy is aimed at combination of short-term and long-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
Total debt includes all long and short-term debts as disclosed in notes 26, 27 and 29 to the consolidated financial statements. Equity comprises all
components excluding (profit)/loss on cash flow hedges and foreign currency translation reserve.
The following table summarizes the capital of the Company:

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Equity* 47,661.09 63,087.37
Short-term borrowings and current portion of long-term debt 42,791.74 35,494.90
Long-term debt 93,112.77 83,315.62
Total debt 135,904.51 118,810.52
Total capital (Debt + Equity) 183,565.60 181,897.89
* Details of equity :
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Total equity as reported in balance sheet 56,820.21 63,892.09
Currency translation reserve attributable to
- Shareholders of Tata Motors Limited (8,727.21) (4,874.70)
- Non-controlling interests (53.67) (35.20)
Hedging reserve and cost of hedge reserve (378.24) 4,105.18
Equity as reported above 47,661.09 63,087.37

41. DISCLOSURE ON FINANCIAL INSTRUMENTS

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance
sheet items that contain financial instruments.
(a) Financial assets and liabilities
The following table presents the carrying amounts and fair value of each category of financial assets and liabilities
as at March 31, 2021.
(` in crores)
Derivatives
Cash and
other than Derivatives
other
Non -Derivative in hedging in hedging
financial Total carrying
Financial assets Financial assets relationship relationship Total fair value
assets at value
at fair value (at fair value (at fair
amortised
through profit value)
cost
or loss)
(a) Other investments - non-current - 1,368.30 - - 1,368.30 1,368.30
(b) Investments - current 16,078.84 2,972.35 - - 19,051.19 19,051.19
(c) Trade receivables 12,679.08 - - - 12,679.08 12,679.08
(d) Cash and cash equivalents 31,700.01 - - - 31,700.01 31,700.01
(e) Other bank balances 15,092.45 - - - 15,092.45 15,092.45
(f) Loans and advances - non-current 1,204.59 - - - 1,204.59 1,204.59
(g) Loans and advances - current 1,749.40 - - - 1,749.40 1,749.40
(h) Finance receivable - current 9,879.20 7,988.89 - - 17,868.09 17,868.09
(i) Finance receivable - non-current 16,846.82 - - - 16,846.82 17,181.68
(j) Other financial assets - non-current 2,552.76 - 637.52 2,623.70 5,813.98 5,813.98
(k) Other financial assets - current 2,422.90 - 759.88 2,091.54 5,274.32 5,274.32
Total 110,206.05 12,329.54 1,397.40 4,715.24 128,648.23 128,983.09
(` in crores)
Derivatives
Derivatives
other than Other financial
in hedging Total carrying Total fair
Financial liabilities in hedging liabilities (at
relationship value value
relationship amortised cost)
(at fair value)
(at fair value)
(a) Long-term borrowings (including current maturities of - - 114,241.72 114,241.72 109,317.56
long-term borrowings) (note below)
(b) Lease Liability (including current) - - 6,226.06 6,226.06 6,899.68
(d) Trade payables - - 68,179.84 68,179.84 68,179.84
(e) Acceptances - - 7,860.31 7,860.31 7,860.31
(f) Other financial liabilities - non-current 763.52 1,295.91 496.92 2,556.35 2,556.35
(g) Other financial liabilities - current 686.64 1,733.54 11,305.46 13,725.64 13,725.64
Total 1,450.16 3,029.45 229,973.10 234,452.71 230,202.17
Note:
1 Inculdes `7,900.02 crores designated as hedged item in fair value hedge relationaship. This includes a loss of `10.08 crores on
account of fair value changes attributable to the hedged interest rate risk.

Consolidated
(` in crores)
Cash and
Non Derivatives other
other Derivatives
-Derivative than in hedging
financial in hedging Total carrying Total fair
Financial assets Financial relationship (at
assets at relationship value value
assets at fair fair value through
amortised (at fair value)
value profit or loss)
cost
(a) Other investments - non-current - 1,028.05 - - 1,028.05 1,028.05
(b) Investments - current 9,354.61 1,506.93 - - 10,861.54 10,861.54
(c) Trade receivables 11,172.69 - - - 11,172.69 11,172.69
(d) Cash and cash equivalents 18,467.80 - - - 18,467.80 18,467.80
(e) Other bank balances 15,259.17 - - - 15,259.17 15,259.17
(f) Loans and advances - non-current 782.78 - - - 782.78 782.78
(g) Loans and advances - current 935.25 - - - 935.25 935.25
(h) Finance receivable - current 10,525.51 3,719.79 - - 14,245.30 14,245.30
(i) Finance receivable - non-current 16,833.77 - - - 16,833.77 16,356.14
(j) Other financial assets - non-current 2,458.41 - 388.93 1,902.23 4,749.57 4,749.57
(k) Other financial assets - current 2,195.18 - 1,566.76 824.54 4,586.48 4,586.48
Total 87,985.17 6,254.77 1,955.69 2,726.77 98,922.40 98,444.77
(` in crores)
Derivatives
Derivatives Other financial
other than Total
in hedging liabilities
in hedging carrying Total fair value
relationship (at amortised
relationship value
(at fair value) cost)
(at fair value)
(a) Long-term borrowings (including current maturities of long-term - - 102,447.99 102,447.99 92,953.58
borrowings) (note below)
(b) Lease Liability (including current) - - 5,977.12 5,977.12 6,187.86
(d) Trade payables - - 63,626.88 63,626.88 63,626.88
(e) Acceptances - - 2,771.33 2,771.33 2,771.33
(f) Other financial liabilities - non-current 587.96 2,667.92 602.60 3,858.48 3,858.48
(g) Other financial liabilities - current 1,926.29 2,354.31 13,131.03 17,411.63 17,411.63
Total 2,514.25 5,022.23 204,919.48 212,455.96 203,172.29
Note:
1 Inculdes `8,333.93 crores designated as hedged item in fair value hedge relationaship. This includes a loss of `422.03 crores on account of
fair value changes attributable to the hedged interest rate risk.
Fair Value Hierarchy
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into
Level 1 to Level 3, as described below.
Quoted prices in an active market (Level 1): This level of hierarchy includes financial instruments that are measured by reference to quoted prices
(unadjusted) in active markets for identical assets or liabilities. This category consists quoted equity shares, quoted corporate debt instruments
and mutual fund investments.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other
than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e; as prices) or indirectly (i.e; derived from
prices). This level of hierarchy includes Company’s over-the-counter (OTC) derivative contracts.
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using
inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model
based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data. The main items in this category are investments in certain unquoted debentures and equity.

(` in crores)
(a) Investments 3,471.74 - 868.91 4,340.65
(b) Derivative assets - 6,112.64 - 6,112.64
(c) Finance receivables - - 7,988.89 7,988.89
Total 3,471.74 6,112.64 8,857.80 18,442.18
(a) Derivative laibilities - 4,479.61 - 4,479.61
Total - 4,479.61 - 4,479.61
Costs of certain unquoted equity instruments have been considered as an appropriate estimate of fair value because these investments are subject
to a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range. These investments in
equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon the application of Ind AS 109,
the Company has chosen to designate these investments in equity instruments as at FVTOCI as the management believe that this provides a more
meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value in profit or loss.
Fair values of forward derivatives and commodity swap contracts are estimated by discounting expected future contractual cash flows using
prevailing market interest rate curves. Option contracts are fair valued using standard options pricing methodology, based on prevailing market
interest rates and volatality.
Reconciliation of financial assets measured at fair value using significant unobservable
(` in crores)
Reconciliation of financial assets measured at fair value using significant unobservable inputs (Level 3)
March 31, 2021 March 31, 2020
Balance at the beginning 4,431.38 738.26
Originated / purchased during the period 6,152.93 3,947.03
Interest accrued on loans measured at FVOCI 17.71 27.29
Disposals during the period (1,976.20) (283.10)
Loan loss provision recognised - (16.89)
Fair value changes recognized through OCI 241.17 133.32
Fair value changes recognized through P& L (8.34) (121.59)
Foreign exchange translation difference (0.85) 7.06
(` in crores)
(a) Investments 1,823.39 - 711.59 2,534.98
(b) Derivative assets - 4,682.46 - 4,682.46
(c) Finance receivables - - 3,719.79 3,719.79
Total 1,823.39 4,682.46 4,431.38 10,937.23
(a) Derivative liabilities - 7,536.48 - 7,536.48
Total - 7,536.48 - 7,536.48
There have been no transfers between level 1, level 2 and level 3 for the year ended March 31, 2021 and 2020.

Consolidated
The following table provides an analysis of fair value of financial instruments that are not measured at fair value on recurring basis, grouped into
Level 1 to Level 3 categories:
(` in crores)
(a) Investments 16,078.84 - - 16,078.84
(b) Finance receivables - - 27,060.88 27,060.88
Total 16,078.84 - 27,060.88 43,139.72
(a) Long-term borrowings (including current maturities of long term 54,749.83 54,567.73 - 109,317.56
borrowing)
Total 54,749.83 76,230.52 - 130,980.35
(` in crores)
(a) Investments 9,354.61 - - 9,354.61
(b) Finance receivables - - 26,881.65 26,881.65
Total 9,354.61 - 26,881.65 36,236.26
(a) Long-term borrowings (including current maturities of long term 34,715.69 58,237.89 - 92,953.58
borrowing)
Total 34,715.69 74,600.42 - 109,316.11
Other short-term financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.
The fair value of finance receivables has been estimated by discounting expected cash flows using rates at which loans of similar credit quality
and maturity would be made and internal assumptions such as expected credit losses and estimated collateral value for repossessed vehicles as
at March 31, 2021 and 2020. Since significant unobservable inputs are applied in measuring the fair value, finance receivables are classified in
Level 3.
The fair value of borrowings which have a quoted market price in an active market is based on its market price and for other borrowings the fair
value is estimated by discounting expected future cash flows, using a discount rate equivalent to the risk-free rate of return, adjusted for the credit
spread considered by the lenders for instruments of similar maturity and credit quality.
Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any
estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative
of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of the financial
instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.

Offsetting
Certain financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right to set off recognized
amounts and the Company intends to either settle on a net basis, or to realise the asset and settle the liability, simultaneously.
Certain derivative financial assets and financial liabilities are subject to master netting arrangements, whereby in the case of insolvency, derivative
financial assets and financial liabilities with the same countries will be settled on a net basis.
The following table discloses the amounts that have been offset, in arriving at the balance sheet presentation and the amounts that are available
(` in crores)
Amounts subject to an
enforceable master
Gross amount Net amount
netting arrangement
Gross amount recognized as set presented in Net amount
recognized off in the balance the balance Cash after offsetting
sheet sheet Financial collateral
instruments (received/
pledged)
Financial assets
(a) Derivative financial instruments 6,112.64 - 6,112.64 (3,679.34) - 2,433.30
(c) Cash and cash equivalents 33,881.59 (2,181.58) 31,700.01 - - 31,700.01
Total 52,876.39 (2,384.66) 50,491.73 (3,679.34) - 46,812.39
(a) Derivative financial instruments 4,479.61 - 4,479.61 (3,679.34) - 800.27
(b) Trade payable 68,382.92 (203.08) 68,179.84 - - 68,179.84
(c) Loans from banks/financial institutions (short-term 44,973.32 (2,181.58) 42,791.74 - - 42,791.74
& current maturities of long term debt)
Total 117,835.85 (2,384.66) 115,451.19 (3,679.34) - 111,771.85
The following table discloses the amounts that have been offset in arriving at the balance sheet presentation and the amounts that are available
(` in crores)
Gross amount Amounts subject to an enforceable
Net amount
Gross amount recognized as master netting arrangement Net amount
presented in the
recognized set off in the Financial Cash collateral after offsetting
balance sheet
balance sheet instruments (received/pledged)
Financial assets
(c) Cash and cash equivalents 25,112.50 (6,644.70) 18,467.80 - - 18,467.80
Total 41,100.09 (6,777.14) 34,322.95 (3,631.46) - 30,691.49
(b) Trade payable 63,759.32 (132.44) 63,626.88 - - 63,626.88
(c) Loans from banks/financial institutions 42,139.60 (6,644.70) 35,494.90 - - 35,494.90
(short-term & current maturities of
long term debt)
Total 113,435.40 (6,777.14) 106,658.26 (3,631.46) - 103,026.80

Consolidated
(b) Transfer of financial assets

The Company transfers finance receivables through securitisation transactions and direct assignments. In such transactions the Company
surrenders control over the receivables, though it continues to act as an agent for the collection of receivables. Generally in such transactions,
the Company also provides credit enhancements to the transferee.
Because of the existence of credit enhancements in such transactions, the Company continues to have the obligation to pay to the transferee,
limited to the extent of credit enhancement provided, even if it does not collect the equivalent amounts from the original asset and hence
continues to retain substantially all risks and rewards associated with the receivables, and as a result of which such transfer or assignment
does not meet the derecognition criteria, resulting in the transfer not being recorded as sale. Consequently, the proceeds received from such
transfers are recorded as collateralized debt obligations.
Further the Company transfers certain trade receivables under the debt factoring arrangements. These do not qualify for derecognition,
due to existence of the recourse arrangement. Consequently the proceeds received from such transfers with a recourse arrangements are
recorded as loans from banks / financial institutions and classified under short-term borrowings.
The carrying amount of trade receivables and finance receivables transferred along with the associated liabilities is as follows:
(` in crores)
Carrying amount Carrying amount
Nature of Asset Carrying amount of Carrying amount of
of associated of associated
asset transferred asset transferred
liabilities liabilities
(a) Trade receivables 238.35 238.35 - -
(b) Finance receivables 3,008.431 2,972.16 4,257.371 4,228.24
1
Net of provision of `53.49 crores and `49.38 crores as at March 31, 2021 and 2020, respectively.
(c) Cash flow hedges
As at March 31, 2021, the Company have a number of financial instruments designated in a hedging relationship. The Company and its
subsidiaries use both foreign currency forward and option contracts, cross currency interest rate swaps and other currency options to hedge
changes in future cash flows as a result of foreign currency and interest rate risk arising from forecasted sales and purchases and repayment
of foreign currency bonds. The Company and its subsidiaries have also designated some of its U.S. dollar denominated bonds as hedging
instruments in a cash flow hedging relationship to hedge the changes in future cash flows as a result of foreign currency risk arising from
future anticipated sales.
The Company also have a number of foreign currency options and other currency options, which are entered into as an economic hedge of
the financial risks of the Company. These contracts do not meet the hedge accounting criteria of Ind AS 109, hence the change in fair value
of these derivatives are recognized in the statement of Profit and Loss.
Options are designated on spot discounted basis. The time value of options are identified as cost of hedge. Changes in the time value of
options are recognised in Cost of Hedge reserve to the extent they relate to the hedged item. Changes in the spot intrinsic value of options is
recognized in Hedge reserve. Changes in fair value arising from own and counterparty credit risk in options and forward exchange contracts
are considered ineffective in the hedge relationship and thus the change in fair value of options & forward exchange contracts attributable
to changes in credit spread are recognised in the consolidated statement of profit and loss. Cross currency basis spread was historically
included in the hedging relationship. Any ineffectiveness arising out of cross currency basis spread is recognised in the statement of profit
and loss as it arises. Cross currency basis spread arising from forward exchange contracts entered after 1st January 2018 is identified as
cost of hedge and accordingly changes in fair value attributable to this is recognized in cost of hedge reserve to the extent they relate to the
hedged item.
Changes in fair value of foreign currency derivative and bonds, to the extent determined to be an effective hedge, is recognized in other
comprehensive income and the ineffective portion of the fair value change is recognized in consolidated statement of Profit and Loss. The
fair value gain/losses recorded in Hedge reserve and Cost of Hedge reserve is recognised in the consolidated statement of profit and loss
when the forecasted transactions affects profit or loss occur. The accumulated gain/losses in hedge reserve and cost of hedge reserve are
expected to be recognized in consolidated statement of profit or loss during the years ending March 31, 2021 to 2025.
It is anticipated that the hedged sales will take place over the next one to five years, at which time the amount deferred in equity will be
reclassified to revenue in the consolidated statement of profit or loss.
It is anticipated that the hedged purchases will take place over the next one to five years, at which time the amount deferred in equity will
be included in the carrying amount of the raw materials. On sale of the finished product, the amount previously deferred in equity and
subsequently recognised in inventory will be reclassified to raw materials, components, and consumables in the consolidated statement of
profit or loss.
In light of the impact of COVID-19 on forecast exposures, the Company reassessed existing hedging relationships and released amounts
deferred in equity to profit and loss where appropriate
(` in crores)
As at As at
March 31,2021 March 31,2020
Fair value gain/(loss) on foreign currency derivative contracts entered for cash flow hedges of forecast 6,131.84 (2,926.97)
sales recognized in hedging reserve
Fair value gain/(loss) on foreign currency derivative contracts entered for cash flow hedges of forecast (1,797.52) 695.35
inventory purchases recognized in hedging reserve
Fair value gain/(loss) on foreign currency bonds designated as cash flow hedges of - (61.83)
forecast sales recognised in hedging reserve
Fair value gain/(loss) on derivatives entered for cash flow hedges of repayment of foreign currency 29.41 (81.89)
denominated borrowings recognized in hedging reserve
Fair value gain/(loss) on interest rate swaps entered for cash flow hedges of payment of interest on (19.21) (152.89)
borrowings benchmarked to LIBOR
Fair value gain/(loss) recognized in other comprehensive income during the year 4,344.52 (2,528.23)
Gain/(loss) reclassified from Hedging reserve and recognized in 'Revenue from operations' in the (980.14) (4,814.06)
statement of profit and loss on occurrence of forecast sales
Gain/(loss) reclassified out of Hedging reserve and recorded in Inventory in the Balance sheet on (130.04) 270.97
occurrence of forecast purchases
Gain/(loss) reclassified from Hedging reserve and recognized in 'Foreign exchange (gain)/loss (net)' 30.11 14.78
in the statement of profit and loss for the case where on account of forecast transactions no longer
expected to occur
Gain/(loss) reclassified from Hedging reserve and recognized in 'Foreign exchange (gain)/loss (net)' in (144.80) 120.35
the statement of profit and loss on account of repayment of foreign currency denominated borrowings
Gain/(loss) reclassified from Cost of Hedge reserve and recognized in 'Foreign exchange (gain)/loss - -
(net)' in the statement of profit and loss on account of forecast transactions no longer expected to occur
Gain/(loss) reclassified from equity other comprehensive income to the consolidated statement (1,224.87) (4,407.96)
of profit or loss
Gain/(loss) on foreign currency derivatives not hedge accounted, recognized in 'Foreign exchange (840.74) 531.84
(gain)/loss (net)' in the statement of profit and loss
Fair value gain/(loss) recognized in 'Foreign exchange (gain)/loss (net)' in the statement of profit and (94.13) (7.52)
loss on account of ineffectiveness arising from foreign currency basis spread on forward contracts
designated in cash flow hedge relationship
(934.87) 524.32
(d) Financial risk management
In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity
prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments.
The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the
financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors.
The risk management framework aims to:
• Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the Company’s
business plan.
• Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.
(i) Market risk
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in
the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign
currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be
normally predicted with reasonable accuracy.
(a) Foreign currency exchange rate risk:
The fluctuation in foreign currency exchange rates may have potential impact on the consolidated statement of profit & loss,
consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in equity and
cosolidated statement of cash flows, where any transaction references more than one currency or where assets/liabilities are
denominated in a currency other than the functional currency of the respective consolidated entities.
Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising
from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in U.S. dollar, GBP, Chinese
renminbi, Japanese yen, Singapore dollar and Euro, against the respective functional currencies of Tata Motors Limited and its
subsidiaries.

Consolidated
The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge
foreign exchange and interest rate exposure. Furthermore, any movement in the functional currencies of the various operations
of the Company against major foreign currencies may impact the Company’s revenues and expenditure relating to its international
operations. Any weakening of the functional currency may impact the Company’s cost of imports and cost of borrowings and
consequently may increase the cost of financing the Company’s capital expenditures.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of
a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each currency by 10% while
keeping the other variables as constant.
The following analysis is based on the gross exposure as of the relevant balance sheet dates, which could affect the income
statement. There is no exposure to the income statement on account of translation of financial statements of consolidated foreign
entities. Furthermore, the exposure as indicated below is mitigated by natural hedges resulting from anticipated revenue and cost
in foreign currency expected to arise in future as well as certain derivative contracts entered into by the Company.
The following table sets forth information relating to foreign currency exposure other than risk arising from derivatives contract
as of March 31, 2021:
(` in crores)
Chinese Canadian
U.S. dollar Euro GBP Others 1
Total
Renminbi dollar
(a) Financial assets 18,117.49 11,398.80 3,446.88 781.74 476.15 2,652.22 36,873.28
(b) Financial 48,042.33 43,344.41 12,033.17 5,671.40 1,325.35 2,895.62 113,312.28
liabilities
1
Others mainly include currencies such as the Russian rouble, Singapore dollars, Swiss franc, Australian dollars, South African
rand, Thai baht, Japanese Yen and Korean won.
The table below outlines the effect change in foreign currencies exposure for the year ended March 31, 2021:
Impact on Company's net income before tax Impact on Company's net income before tax
Change in assumption
for financial assets for financial liabilities
Appreciation in foreign currencies by 10% Increase by `3,687.33 crores Decrease by `(11,331.23) crores
Depreciation in foreign currencies by 10% Decrease by `(3,687.33) crores Increase by `11,331.23 crores
(Note: The impact is indicated on the income/loss before tax basis).

The following table set forth information relating to foreign currency exposure (other than risk arising from derivatives) as of
March 31, 2020:
(` in crores)
Chinese Canadian
U.S. dollar Euro GBP Others Total
Renminbi dollar
(a) Financial assets 18,594.94 11,414.53 4,526.86 1,313.38 1,535.41 2,412.27 39,797.39
(b) Financial liabilities 40,045.28 40,994.24 4,909.28 6,263.41 758.12 3,094.68 96,065.01
(b) Interest rate risk
Interest rate risk is the risk that changes in market interest rates will lead to changes in fair value of financial instruments or
changes in interest income, expense and cash flows of the Group.
The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company’s interest rate exposure
is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the
liquidity and fund requirements for its day to day operations like short term non-convertible bonds and short term loans.
In its financing business, the Company enters into transactions with customers which primarily result in receivables at fixed
rates. In order to manage this risk, the Company has a policy to match funding in terms of maturities and interest rates and
also for certain part of the portfolio, the Company does not match funding with maturities, in order to take advantage of market
opportunities.
The Company also enters into arrangements of securitization of receivables in order to reduce the impact of interest rate
movements. Further, Company also enters into interest rate swap contracts with banks to manage its interest rate risk.

As at March 31, 2021 and 2020 financial liabilities of `46,589.38 crores and `45,021.15 crores respectively, were subject to
variable interest rates. Increase/decrease of 100 basis points in interest rates at the balance sheet date would result in an impact
(decrease/increase of profit before tax) of `465.89 crores and `450.21 crores on income for the year ended March 31, 2021 and
2020, respectively.
The model assumes that interest rate changes are instantaneous parallel shifts in the yield curve. Although some assets and
liabilities may have similar maturities or periods to re-pricing, these may not react correspondingly to changes in market interest
rates. Also, the interest rates on some types of assets and liabilities may fluctuate with changes in market interest rates, while
interest rates on other types of assets may change with a lag.
The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also
assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that
date. The period end balances are not necessarily representative of the average debt outstanding during the period.
This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
The Company uses cross currency interest rate swaps to hedge some of its exposure to interest rate arising from variable rate
foreign currency denominated debt. The Company also uses cross currency interest rate swaps to convert some of its foreign
currency denominated fixed rate debt to floating rate debt.
(c) Equity Price risk
Equity Price Risk is related to the change in market reference price of the investments in equity securities.
The fair value of some of the Company’s investments in equity securities exposes the Company to equity price risks. In general,
these securities are not held for trading purposes. These investments are subject to changes in the market price of securities.
The fair value of some of the Company’s investment in quoted equity securities measured at FVOCI as of March 31, 2021 and
2020, was `499.37 crores and `158.68 crores, respectively. A 10% change in prices of these securities held as of March 31, 2021
and 2020, would result in a pre-tax impact of `49.94 crores and `15.87 crores on equity, respectively.
The fair value of some of the Company’s investments in quoted equity securities measured at FVTPL as of March 31, 2021 and
2020, was `Nil and `157.78 crores,respectively. A 10% change in prices of these securities measured at FVTPL held as of March
31, 2021 and 2020, would result in an impact of `Nil and `15.78 crores on profit before tax, respectively.
(ii) Credit risk
Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the contractual terms
or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as
concentration risks.
Financial instruments that are subject to concentrations of credit risk, principally consist of investments in debt instruments, trade
receivables, finance receivables, loans and advances and derivative financial instruments. The Company strives to promptly identify
and reduce concerns about collection due to a deterioration in the financial conditions and others of its main counterparties by regularly
monitoring their situation based on their financial condition.
None of the financial instruments of the Company result in material concentrations of credit risks.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was
`1,27,872.52 crores as at March 31, 2021 and `98,304.54 crores as at March 31, 2020, being the total of the carrying amount of
balances with banks, short term deposits with banks, trade receivables, finance receivables, margin money and other financial assets
excluding equity investments.
Financial assets that are neither past due nor impaired
None of the Company’s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and
other receivables, and other loans or receivables that are neither impaired nor past due, there were no indications as at March 31, 2021,
and March 31,2020, that defaults in payment obligations will occur.

Consolidated
Credit quality of financial assets and impairment loss

The ageing of trade receivables and finance receivables as of balance sheet date is given below. The age analysis have been considered
from the due date.
(` in crores)
Trade receivables
Period (in months)
(a) Not due 10,296.72 (30.78) 10,265.94 8,199.18 (33.03) 8,166.15
(b) Overdue up to 3 months 1,445.78 (29.11) 1,416.67 1,980.20 (16.38) 1,963.82
(c) Overdue 3-6 months 246.69 (6.93) 239.76 363.58 (37.21) 326.37
(d) Overdue more than 6 months 1,679.08 (922.37) 756.711 1,743.73 (1,027.38) 716.35 1
Total 13,668.27 (989.19) 12,679.08 12,286.69 (1,114.00) 11,172.69
Trade receivables consist of a large number of various types of customers, spread across geographical areas. Ongoing credit evaluation
is performed on the financial condition of these trade receivables and where appropriate, allowance for losses are provided.
1
Trade receivables overdue more than six months include `538.91 crores as at March 31, 2021 (`471.35 crores as at March 31, 2020),
outstanding from Government organizations in India, which are considered recoverable.
The Company makes allowances for losses on its portfolio of finance receivable on the basis of expected future collection from
receivables. The future collection are estimated on the basis of past collection trend which are adjusted for changes in current
circumstances as well as expected changes in collection future based on expectations future with respect to certain macro economic
factor like GDP growth, fuel price and inflation.
(` in crores)
Finance receivables 2
Period (in months)
(a) Not due3 34,213.19 (938.31) 33,274.88 30,448.46 (529.04) 29,919.42
(b) Overdue up to 3 months 871.10 (61.12) 809.98 724.30 (31.43) 692.87
(c) Overdue more than 3 months 878.30 (248.25) 630.05 557.69 (90.91) 466.78
Total 35,962.59 (1,247.68) 34,714.91 31,730.45 (651.38) 31,079.07
2
Finance receivables originated in India.
3
Allowance in the “Not due” category includes allowance against instalments pertaining to impaired finance receivables which have
not yet fallen due.
(iii) Liquidity risk
Liquidity risk refers to the risk that the Company will encounter difficulty to meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company has access
to funds from debt markets through commercial paper programs, non-convertible debentures, fixed deposits from public, senior notes
and other debt instruments. The Company invests its surplus funds in bank fixed deposit and liquid and liquid plus schemes of mutual
funds, which carry no/low mark to market risks. The Company has also invested 15% of the amount of public deposits/non-convertible
debentures (taken by the Company) falling due for repayment in the next 12 months in bank deposits, to meet the regulatory norms of
liquidity.
The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial
flexibility.

The table below provides undiscounted contractual maturities of financial liabilities, including estimated interest payments as at March
31, 2021:
(` in crores)
Carrying Due in Due in Due in 3rd to Due after 5th Total contractual
Financial liabilities amount 1 st Year 2nd Year 5th Year Year cash flows
(a) Trade payables and acceptances 76,040.15 76,040.15 - - - 76,040.15
(b) Borrowings and interest thereon 137,507.31 49,104.06 27,800.46 56,341.29 16,444.68 149,690.49
(c) Lease Liability 6,226.06 1,307.36 1,091.91 2,446.69 4,812.38 9,658.35
(d) Derivative liabilities 4,479.61 2,598.31 1,193.78 1,229.93 - 5,022.02
(e) Other financial liabilities 10,199.58 9,702.66 218.32 416.76 100.19 10,437.93
Total 234,452.71 138,752.54 30,304.47 60,434.67 21,357.25 250,848.94
Contractual maturities of borrowings includes cash flows relating to collateralized debt obligations. This represents the amount
received against the transfer of finance receivables in securitization transactions and/or direct assignments, which do not qualify for
derecognition. The liability of the Company in such cases is limited to the extent of credit enhancements provided. The contractual
maturities of such collateralized debt obligations are as follows:
(` in crores)
Due in 3rd to 5th Total contractual
Financial liabilities Carrying amount Due in 1 st Year Due in 2nd Year
Year cash flows
Collateralized debt obligations 2,973.65 1,926.47 1,030.25 355.05 3,311.77
The table below provides details regarding the contractual maturities of financial liabilities, including estimated interest payments as
at March 31, 2020:
(` in crores)
Carrying Due in Due in Due in 3rd to Due after Total contractual
Financial liabilities amount 1 st Year 2nd Year 5th Year 5th Year cash flows
(a) Trade payables and acceptances 66,398.21 66,398.21 - - - 66,398.21
(b) Borrowings and interest thereon 120,095.62 40,654.07 21,429.66 54,775.14 20,570.21 137,429.08
(c) Lease Liability 5,977.12 1,312.67 1,062.61 2,305.21 4,912.07 9,592.56
(d) Derivative liabilities 7,536.48 4,635.15 2,546.11 1,361.61 219.38 8,762.25
(e) Other financial liabilities 12,448.53 11,868.04 202.33 406.95 62.52 12,539.84
Total 212,455.96 124,868.14 25,240.71 58,848.91 25,764.18 234,721.94
The contractual maturities of such collateralized debt obligations are as follows:
Due in 3rd to 5th Total contractual

Financial liabilities Carrying amount Due in 1 st Year Due in 2nd Year
Year cash flows
Collateralized debt obligations 4,229.94 2,445.13 1,494.20 717.95 4,657.28
(iv) Derivative financial instruments and risk management
The Company has entered into variety of foreign currency, interest rates and commodity forward contracts and options to manage
its exposure to fluctuations in foreign exchange rates, interest rates and commodity price risk. The counterparty is generally a bank.
These financial exposures are managed in accordance with the Company’s risk management policies and procedures.
The Company also enters into interest rate swaps and cross currency interest rate swap agreements, mainly to manage exposure on
its fixed rate or variable rate debt. The Company uses interest rate derivatives or currency swaps to hedge exposure to exchange rate
fluctuations on principal and interest payments for borrowings denominated in foreign currencies.
Specific transactional risks include risks like liquidity and pricing risks, interest rate and exchange rate fluctuation risks, volatility risks,
counterparty risks, settlement risks and gearing risks.
Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable
market data.

Consolidated
The fair value of derivative financial instruments is as follows:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) Foreign currency forward exchange contracts and options 1,895.72 (2,463.20)
(b) Commodity Derivatives 13.32 (639.47)
(c) Others including interest rate and currency swaps (276.01) 248.65
Total 1,633.03 (2,854.02)
Following table provides sensitivity analysis in relation to derivative contracts:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
10% depreciation of foreign currency:
Gain/(loss) in hedging reserve and cost of hedge reserve 4,722.70 5,585.17
Gain/(loss) in statement of Profit and loss (2,258.44) (1,023.32)
10% Appreciation of foreign currency:

Gain/(loss) in hedging reserve and cost of hedge reserve (5,453.51) (5,585.77)
Gain/(loss) in statement of Profit and loss 2,979.77 1,257.85
(v) Commodity Price Risk

The Group is exposed to commodity price risk arising from the purchase of certain raw materials such as aluminium, copper, platinum
and palladium. This risk is mitigated through the use of derivative contracts and fixed-price contracts with suppliers. The derivative
contracts are not hedge accounted under Ind AS 119 but are instead measured at fair value through profit or loss.
The gain/(loss) on commodity derivative contracts, recognized in the statement of Profit and Loss was `1,382.09 crores loss and
`688.18 crores loss for the years ended March 31, 2021 and 2020, respectively.
In respect of the Company’s commodity derivative contracts, a 10% depreciation/appreciation of all commodity prices underlying such
contracts, would have resulted in an approximate gain/(loss) of `397.87 crores and `458.32 crores in the statement of profit and loss
for the years ended March 31, 2021 and 2020, respectively.
Exposure to gain/loss on derivative instruments offset to some extent the exposure to foreign currency risk, interest rate risk as
disclosed above.
(Note: The impact is indicated on the income/loss before consequential tax impact,if any basis).

42. DISCLOSURE ON FINANCIALS INSTRUMENTS DESIGNATED AS HEDGING INSTRUMENT IN CASHFLOW HEDGE

The details of cash flow hedges entered by the Company to hedge interest rate risk arising on floating rate borrowings and by one of the
Company’s subsidiaries to hedge the currency fluctuation of its functional currency (GBP) against foreign currencies to hedge future cash
flows arising from revenue and cost of materials is as follows:
Nominal amounts Carrying value

Average strike rate
(` in crores) (` in crores)
Outstanding contracts
As at As at As at As at As at As at
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Foreign currency forwards
Cash flow hedges - USD
Sell - USD/ Buy - GBP
<1 year 0.760 0.723 28,549.84 16,518.99 1,375.29 (1,466.24)
Between 1-5 years 0.765 0.765 31,199.37 47,686.36 1,732.26 (1,778.03)
Buy - USD/ Sell - INR

<1 year 72.403 0.000 791.42 0.0 (2.27) 0
Cash flow hedges - Chinese Yuan

Sell - Chinese Yuan / Buy - GBP
<1 year 0.110 0.109 16,600.00 14,976.20 125.92 (552.52)
Between 1-5 years 0.109 0.110 6,334.03 11,120.42 107.34 (186.15)
Cash flow hedges -Euro

Buy - Euro / Sell - GBP
<1 year 0.907 0.911 27,160.55 24,647.93 (1,375.88) (4.44)
Between 1-5 years 0.901 0.910 19,139.50 31,651.30 (819.19) (157.47)
Cash flow hedges - Other

<1 year 0.000 0.000 12,258.07 8,972.69 246.26 493.72
Between 1-5 years 0.000 0.000 8,528.43 11,583.61 74.85 361.17
Cash flow hedges of foreign exchange risk
on recognised debt
Cross currency interest rate swaps
Buy - USD / Sell - GBP
Between 1-5 years 1.300 - 731.20 - (48.97) -
>5 years 0.759 0.759 3,825.28 3550.57 75.30 529.50
Buy - Euro / Sell - GBP
>5 years 0.891 0.891 4,490.26 4,168.04 (138.06) 29.08
Buy - USD / Sell - INR

Between 1-5 years 71.440 1,895.75 - (20.76) -
>5 years 83.520 83.520 3,929.97 4,488.29 506.64 654.99
Total foreign currency derivative 165,433.67 179,364.41 1,838.73 (2,076.39)
instruments
Cash flow hedges of interest rate risk arising on floating rate borrowings

Consolidated
Average strike rate Nominal amounts Carrying value

(USD in million) (` in crores)
Interest rate swaps linked to LIBOR
>5 years 2.86% 2.86% 237.50 237.50 (152.93) (219.08)
Total derivatives designated in hedge 1,685.80 (2,295.47)
relationship
Non derivatives designated in hedge relationship
Average strike rate Nominal amounts Carrying value

(GBP in million) (` in crores)
Net Investment Hedge - GBP - - 625.00 - - -
43. SEGMENT REPORTING

The Company primarily operates in the automotive business. The automotive business includes all activities relating to development, design,
manufacture, assembly and sale of vehicles including financing thereof, as well as sale of related parts, accessories and services. The
Company provides financing for vehicles sold by dealers in India. The vehicle financing is intended to drive sale of vehicles by providing
financing to the dealers’ customers and as such is an integral part of automotive business. The operating results for Vehicle Financing has
been adjusted only for finance cost for the borrowings sourced by this segment.
Operating segments consist of :
a) Automotive: The Automotive segment consists of four reportable sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles,
Jaguar Land Rover and Vehicle Financing.
b) Others: Others consist of IT services and Insurance Broking services.
These segment information is provided to and reviewed by Chief Operating Decision Maker (CODM).

(` in crores)
Automotive and related activity
Inter-
Tata and other brand vehicle 1 Intra-
Vehicle Jaguar Land Others segment Total
Commercial Passenger segment Total eliminations
Unallocable Total Financing Rover
vehicle vehicle eliminations
Revenues:
External revenue 33,317.71 16,606.24 157.48 50,081.43 4,276.88 193,822.71 - 248,181.02 1,613.73 - 249,794.75
Inter-segment/intra-segment revenue (213.57) - 125.28 (88.29) 213.57 - (125.28) - 998.73 (998.73) -
Total revenues 33,104.14 16,606.24 282.76 49,993.14 4,490.45 193,822.71 (125.28) 248,181.02 2,612.46 (998.73) 249,794.75
Earnings before other income (excluding (305.44) (1,564.16) (74.89) (1,944.49) 2,794.00 7,691.03 - 8,540.54 319.47 66.70 8,926.71
Incentives), finance costs, foreign exchange
gain/(loss) (net), exceptional items and tax :
Finance costs pertaining to borrowings - - - - (2,851.45) - - (2,851.45) - - (2,851.45)
sourced by vehicle financing segment
Segment results (305.44) (1,564.16) (74.89) (1,944.49) (57.45) 7,691.03 - 5,689.09 319.47 66.70 6,075.26
Other income/(loss) (excluding Incentives) 725.05
Finance costs (excluding pertaining to (5,245.72)
borrowings sourced by vehicle financing
segment)
Foreign exchange 1,732.15

Exceptional items (53.66) 1,673.71 (24.96) 1,595.09 - (15,350.70) - (13,755.61) (5.41) - (13,761.02)
Depreciation and amortisation expense 1,701.46 1,914.19 157.49 3,773.14 61.36 19,741.70 - 23,576.20 96.62 (126.11) 23,546.71
Capital expenditure 1,656.11 822.78 (68.24) 2,410.65 67.51 16,289.59 - 18,767.75 (39.18) - 18,728.57
Share of profit/(loss) of equity accounted - - (40.68) (40.68) - (363.32) - (404.00) 25.04 - (378.96)
investees (net)
Segment assets 27,086.92 16,296.91 2,086.18 45,470.01 39,565.55 179,341.50 - 264,377.06 2,477.58 (1,269.89) 265,584.75
Assets classified as held for sale 220.80 220.80 - 220.80 - - 220.80
Investment in equity accounted investees - - 427.14 427.14 - 3,182.53 - 3,609.67 591.12 - 4,200.79
Other Investments 20,419.49
Current and non-current tax assets (net) 1,868.61
Deferred tax assets (net) 4,520.35
Other unallocated financial assets 2 46,311.01
Segment liabilities 18,038.77 6,035.88 1,106.16 25,180.81 837.32 114,420.20 - 140,438.33 1,508.46 (271.47) 141,675.32
Current tax liabilities (net) 1,086.44
Deferred tax liabilities (net) 1,555.89
Other unallocated financial liabilities 3 6,083.43

1
|
Tata and other brand vehicles include Tata Daewoo and Fiat brand vehicles.
2
Includes interest-bearing deposits and accrued interest income.
3
Includes interest accrued and other interest bearing liabilities.
343
344
|
(` in crores)
Automotive and related activity
Inter-
Tata and other brand vehicles1 Intra-
Vehicle Jaguar Others segment Total
Ccommercial Passenger segment Total
Unallocable Total Financing Land Rover eliminations
vehicle vehicle eliminations
Revenues:
External revenue 36,329.44 10,481.74 144.94 46,956.12 4,295.49 208,040.02 - 259,291.63 1,776.34 - 261,067.97
Inter-segment/intra-segment revenue - - 70.59 70.59 - - (70.59) - 1,270.73 (1,270.73) -
Total revenues 36,329.44 10,481.74 215.53 47,026.71 4,295.49 208,040.02 (70.59) 259,291.63 3,047.07 (1,270.73) 261,067.97
Earnings before other income (excluding (368.22) (2,867.58) (255.86) (3,491.66) 2,854.71 594.05 - (42.90) 382.32 (55.43) 283.99
Incentives), finance costs, foreign exchange
gain/(loss) (net), exceptional items and tax :

Finance costs pertaining to borrowings - - - - (3,079.31) - (3,079.31) - - (3,079.31)
sourced by vehicle financing segment
Segment results (368.22) (2,867.58) (255.86) (3,491.66) (224.60) 594.05 - (3,122.21) 382.32 (55.43) (2,795.32)
Other income(excluding Incentives) 989.54
Finance costs (excluding pertaining to (4,164.02)
borrowings sourced by vehicle financing
segment)
Foreign exchange gain/(loss) (net) (1,738.74)
Exceptional items (10.41) (2,576.04) (15.91) (2,602.36) (9.30) (259.78) - (2,871.44) - - (2,871.44)
Depreciation and amortisation expense 1,646.15 1,742.96 163.05 3,552.16 50.95 17,787.80 - 21,390.91 103.97 (69.45) 21,425.43
Capital expenditure 2,380.15 2,255.27 426.34 5,061.76 71.61 26,161.07 - 31,294.44 (72.20) - 31,222.24
Share of profit/(loss) of equity accounted - - 62.87 62.87 (1.94) (1,033.76) - (972.83) (27.17) - (1,000.00)
investees (net)
Segment assets 26,016.50 16,150.81 3,614.16 45,781.47 33,587.64 187,333.67 - 266,702.78 2,440.21 (1,394.69) 267,748.30
Assets classified as held for sale - - 194.43 194.43 - - - 194.43 - - 194.43
Investment in equity accounted investees - - 468.96 468.96 - 3,384.36 - 3,853.32 565.57 - 4,418.89
Current and non-current income tax assets 1,294.85
(net)
Deferred income taxes (net) 5,457.90
Other unallocated financial assets 2 31,117.30
Segment liabilities 13,101.11 4,962.39 1,456.84 19,520.34 528.49 107,123.37 - 127,172.20 787.93 (330.98) 127,629.15
Current income tax liabilities (net) 1,040.14
Deferred income taxes (net) 1,941.87
Other unallocated financial liabilities 3 2,830.37
1 Tata and other brand vehicles include Tata Daewoo and Fiat brand vehicles.
Consolidated
2 Includes interest-bearing deposits and accrued interest income.

3 Includes interest accrued and other interest bearing liabilities.
Entity-wide disclosures
Information concerning principal geographic areas is as follows:
(` in crores)
Net sales to external customers by geographic area by location of customers:
March 31, 2021 March 31, 2020
(a) India 50,381.31 47,093.49
(b) United States of America 46,946.63 52,029.47
(c) United Kingdom 37,243.95 42,442.85
(d) Rest of Europe 34,045.11 43,227.46
(e) China 44,686.54 29,820.46
(f) Rest of the World 36,491.21 46,454.24
Total 249,794.75 261,067.97
(` in crores)
Non-current assets (Property, plant and equipment, Intangible assets, other non-current assets (non-financial) and As at As at
Goodwill) by geographic area: March 31, 2021 March 31, 2020
(a) India 30,094.71 30,394.18
(b) United States of America 784.91 814.73
(c) United Kingdom 112,673.92 115,323.30
(d) Rest of Europe 11,024.29 11,331.42
(e) China 1,423.24 1,583.26
(f) Rest of the World 3,670.47 3,282.54
Total 159,671.54 162,729.43
(` in crores)
Information about product revenues:
March 31, 2021 March 31, 2020
(a) Tata and Fiat vehicles 46,826.48 43,932.32

(b) Tata Daewoo commercial vehicles 3,254.52 3,058.52
(c) Finance revenues 4,276.88 4,260.30
(d) Jaguar Land Rover vehicles 193,822.71 208,040.02
(e) Others 1,614.16 1,776.81
Total 249,794.75 261,067.97

Consolidated
44. RELATED-PARTY TRANSACTIONS

The Company’s related parties principally includes Tata Sons Private Limited, subsidiaries and joint arrangements of Tata Sons Private
Limited, the Company’s associates and their subsidiaries, joint operations and joint ventures of the Company. The Company routinely enters
into transactions with these related parties in the ordinary course of business. Transactions and balances of the company with its own
subsidiaries and the transactions among subsidiaries are eliminated on consolidation.
All transactions with related parties are conducted under normal terms of business and all amounts outstanding are unsecured and will be
settled in cash
The following table summarizes related-party transactions and balances included in the consolidated financial statements for the year
ended/as at March 31, 2021:
(` in crores)
Tata Sons Pvt Ltd,
Associates and its
Joint ventures Joint operations its subsidiaries and Total
subsidiaries
joint ventures
(A) Transactions
Purchase of products 1,979.56 - 3,868.63 27.74 5,875.93
Sale of products 145.00 2,754.60 1,179.01 945.92 5,024.53
Services received 14.57 - 0.74 1,424.89 1,440.20
Services rendered 10.59 1,076.96 4.49 170.00 1,262.04
Purchase of property, plant and 24.82 - - 3.72 28.54
equipment
Interest (income)/expense, dividend 5.50 (0.09) 18.37 58.89 82.67
(income)/paid.(net)
Finance given (including loans and - - - 41.25 41.25
equity)
Finance taken (including loans and 211.00 - - 2,602.51 2,813.51
equity)
Finance taken, paid back (including 162.00 - - - 162.00
loans and equity)
Borrowing towards Lease Liability - - 167.99 - 167.99
Repayment towards lease liability - - 14.14 - 14.14
(B) Balances
Amount receivable in respect of Loans - 9.39 - 4.59 13.98
and interest thereon
Amounts payable in respect of loans 95.00 - - 6.07 101.07
Amount payable in respect of Lease - - 265.85 - 265.85
Liability
Trade and other receivables 40.57 481.29 - 348.46 870.32
Trade payables 65.31 - 156.94 222.48 444.73
Acceptances - - - 929.07 929.07
Provision for amount receivables - 9.30 - - 9.30

The following table summarizes related-party transactions included in the consolidated financial statements for the year ended as/at March
31, 2020:
(` in crores)
Tata Sons Pvt Ltd,
Associates and its
Joint ventures Joint operations its subsidiaries and Total
subsidiaries
joint ventures
(A) Transactions
Purchase of products 1,736.26 0.79 2,781.47 42.67 4,561.19
Sale of products 187.07 1,951.92 681.03 847.55 3,667.57
Services received 22.89 4.16 0.80 1,560.15 1,588.00
Services rendered 16.54 959.58 4.93 81.46 1,062.51
Purchase of property, plant and 81.00 - - 2.37 83.37
equipment
Sale of property, plant and equipment 2.18 - - 95.30 97.48
Interest (income)/expense, dividend (13.58) (606.43) 4.09 29.38 (586.54)
(income)/paid, (net)
Finance given (including loans and - 618.17 - - 618.17
equity)
Finance given, taken back (including - - - 3.50 3.50
loans and equity)
Finance taken (including loans and 104.00 - - 4,561.36 4,665.36
equity)
Finance taken, paid back (including 81.00 - - 858.34 939.34
loans and equity)
Borrowing towards Lease Liability - - 113.83 - 113.83
Repayment towards lease liability - - 1.83 - 1.83
(B) Balances
Amounts receivable in respect of loans - 25.13 - 4.18 29.31
Amounts payable in respect of loans 46.00 - - 1.93 47.93
Amount payable in respect of Lease - - 112.00 - 112.00
Liability
Trade and other receivables 27.45 628.66 - 189.23 845.34
Trade payables 272.61 3.19 269.59 158.17 703.56
Acceptances - - - 76.90 76.90
Provision for amount receivables - 25.12 - - 25.12
Details of significant transactions are given below:
(` in crores)
Particulars Nature of relationship
March 31, 2021 March 31, 2020
i) Services rendered
Chery Jaguar Land Rover Automotive Company Limited Joint ventures 1,076.95 959.00
ii) Vendor bills discounting
Tata Capital Tata Sons Ltd, its subsidiaries and 5,947.23 3,148.52
joint ventures
iii) Converstion of Warrant/ Preferential allotment
Tata Sons Pvt Ltd Tata Sons Ltd, its subsidiaries and 2,602.51 3,891.85
joint ventures

Consolidated
(` in crores)
March 31, 2021 March 31, 2020
Short-term benefits 82.74 62.26
Post-employment benefits* 13.30 7.56
Share based payment 0.68 0.62
The compensation of CEO and Managing Director is `20.58 crores and `16.48 crores for the year ended March 31, 2021 and 2020,
respectively. This compensation for the year ended March 31, 2021, includes `2.83 crores of performance bonus and long term incentive
for the year ended March 31, 2020, approved in the year ended March 31, 2021. The amount for the year ended March 31, 2021 excludes
Performance and Long Term Incentives, which will be accrued post approval by the Board of Directors. The Company has reappointed
CEO and Managing Director from February 15, 2021 till June 30, 2021, which is subject to the approval of the Central Government and the
Shareholders. Remuneration for the period February 15, 2021 to March 31, 2021 of `1.89 crores included above is subject to the approval.
The remuneration of `11.82 crores for the year ended March 31, 2020 and the performance and long term incentives for that year was
subject to the approval of shareholders, which was approved in the Annual General Meeting held on August 25, 2020.
The compensation paid to the previous CEO of Jaguar Land Rover is `49.75 crores and `40.10 crores for the year ended March 31, 2021 and
2020 respectively. The compensation paid to the present CEO of Jaguar Land Rover for the year ended March 31, 2021 is `17.63 crores.
* Excludes provision for encashable leave and gratuity for certain key management personnel as a separate actuarial valuation is not
available.
Refer note 38 for information on transactions with post-employment benefit plans.
45. EARNINGS PER SHARE (“EPS”)
March 31, 2021 March 31, 2020
(a) Profit / (Loss) for the period ` crores (13,451.39) (12,070.85)
(b) The weighted average number of Ordinary shares for Basic EPS Nos. 3,128,268,742 2,952,353,090
(c) The weighted average number of 'A' Ordinary shares for Basic EPS Nos. 508,502,896 508,502,473
(d) The nominal value per share (Ordinary and 'A' Ordinary) ` 2.00 2.00
(e) Share of profit / (loss) for Ordinary shares for Basic EPS ` crores (11,570.58) (10,297.28)
(f) Share of profit / (loss) for 'A' Ordinary shares for Basic EPS* ` crores (1,880.81) (1,773.57)
(g) Earnings Per Ordinary share (Basic) ` (36.99) (34.88)
(h) Earnings Per 'A' Ordinary share (Basic) ` (36.99) (34.88)
(i) Profit after tax for Diluted EPS ` crores # #
(j) The weighted average number of Ordinary shares for Basic EPS Nos. # #
(k) Add: Adjustment for Options relating to warrants and shares held in abeyance Nos. # #
(l) The weighted average number of Ordinary shares for Diluted EPS Nos. # #
(m) The weighted average number of 'A' Ordinary shares for Basic EPS Nos. # #
(n) Add: Adjustment for 'A' Ordinary shares held in abeyance Nos. # #
(o) The weighted average number of 'A' Ordinary shares for Diluted EPS Nos. # #
(p) Share of profit for Ordinary shares for Diluted EPS ` crores # #
(q) Share of profit for 'A' Ordinary shares for Diluted EPS* ` crores # #
(r) Earnings Per Ordinary share (Diluted) ` (36.99) (34.88)
(s) Earnings Per 'A' Ordinary share (Diluted) ` (36.99) (34.88)
* ‘A’ Ordinary shareholders are entitled to receive dividend at 5 percentage points more than the aggregate rate of dividend determined by Tata
Motors Limited on Ordinary shares for the financial year.
# Since there is a loss for the year ended March 31, 2021 and 2020, potential equity shares are not considered as dilutive and hence Diluted EPS is
same as Basic EPS.
Employee Stock options are not considered to be dilutive based on the average market price of ordinary shares during the period.

46 ADDITIONAL INFORMATION AS REQUIRED UNDER SCHEDULE III TO THE COMPANIES ACT, 2013, OF
ENTERPRISES CONSOLIDATED AS SUBSIDIARY / ASSOCIATES /JOINT VENTURES
(` in crores)
Net Assets, i.e. total assets Share of other Share of total
Share in profit or loss
minus total liabilities comprehensive income comprehensive income
As % of
Name of enterprises As % of As % of As % of total
Amount consolidated Amount Amount Amount
consolidated consolidated comprehensive
(ìn crores) (profit) or (ìn crores) (ìn crores) (ìn crores)
net assets OCI income
loss
Parent
Tata Motors Ltd 32.58% 17,997.77 19.98% (2,687.07) 15.05% 436.50 21.33% (2,250.57)
Subsidiaries
Indian
TML Business Services (0.03)% (14.12) 0.06% (8.72) 0.01% 0.20 0.08% (8.52)
Limited [name changed
from Concorde Motors
(India) Limited w.e.f March
31, 2020]
Tata Motors Finance Ltd 7.25% 4,002.72 (1.86)% 250.12 7.31% 212.11 (4.38)% 462.23
Tata Technologies Ltd 1.58% 873.14 (0.80)% 108.20 0.08% 2.29 (1.05)% 110.49
Tata Motors Insurance 0.11% 62.13 (0.17)% 22.66 (0.01)% (0.42) (0.21)% 22.24
Broking & Advisory Services
Ltd
TML Distribution Company 0.67% 368.52 (0.06)% 7.49 0.00% 0.13 (0.07)% 7.63
Ltd
TMF Holdings Limited 7.06% 3,901.24 0.82% (110.06) 0.00% 0.04 1.04% (110.02)
Tata Motors Financial 2.84% 1,570.30 (1.61)% 216.24 (0.02)% (0.62) (2.04)% 215.62
Solutions Ltd
Tata Marcopolo Motors Ltd 0.11% 58.55 0.68% (91.30) 0.00% 0.11 0.86% (91.19)
Jaguar Land Rover India 0.35% 190.89 (0.10)% 13.07 (0.46)% (13.45) 0.00% (0.38)
Limited
Brabo Robotics and (0.01)% (5.93) 0.25% (33.54) 0.00% 0.14 0.32% (33.40)
Automation Limited
JT Special Vehicles Pvt. 0.00% 1.91 (0.15)% 20.15 0.00% - (0.19)% 20.15
Limited (Ceased to be a
JV and became a Wholly-
owned Subsidiary w.e.f.
August 11, 2020)
TML Business Analytics (0.02)% (9.27) 0.07% (9.42) 0.00% - 0.09% (9.42)
Services Limited
(Incorporated with effect
from April 4, 2020)
Foreign
Tata Daewoo Commercial 3.33% 1,840.67 1.06% (143.06) 3.77% 109.32 0.32% (33.74)
Vehicle Co. Ltd
Tata Motors European 0.05% 27.88 0.11% (14.30) 0.00% 0.06 0.13% (14.24)
Technical Centre Plc
Tata Motors (SA) 0.03% 18.49 (0.01)% 1.62 0.08% 2.36 (0.04)% 3.98
(Proprietary) Ltd
Tata Motors (Thailand) Ltd (1.13)% (625.44) (0.08)% 10.18 (0.39)% (11.27) 0.01% (1.09)
TML Holdings Pte Ltd, 14.67% 8,104.75 6.15% (826.83) (0.17)% (4.87) 7.88% (831.70)
Singapore
Tata Hispano Motors (1.56)% (864.47) 0.13% (17.73) (1.01)% (29.33) 0.45% (47.06)
Carrocera S.A

Consolidated
(` in crores)
As % of
loss
Tata Hispano Motors (0.10)% (54.72) 0.05% (6.14) (0.13)% (3.73) 0.09% (9.87)
Carroceries Maghreb
Trilix S.r.l (0.05)% (29.83) (0.03)% 3.55 (0.05)% (1.58) (0.02)% 1.97
Tata Precision Industries 0.02% 13.70 (0.08)% 10.22 (0.00)% (0.07) (0.10)% 10.15
Pte Ltd
PT Tata Motors Indonesia 0.53% 294.17 0.01% (0.84) (0.03)% (0.86) 0.02% (1.70)
INCAT International Plc. 0.12% 67.90 0.01% (0.69) 0.23% 6.67 (0.06)% 5.98
Tata Technologies Inc. 0.74% 406.94 (0.45)% 59.96 (0.66)% (19.21) (0.39)% 40.75
Tata Technologies de 0.00% 2.55 0.01% (0.96) 0.11% 3.31 (0.02)% 2.35
Mexico, S.A. de C.V.
Cambric Limited, Bahama 0.04% 20.46 0.00% (0.02) 0.00% - 0.00% (0.02)
Cambric GmbH (Liquidated 0.00% - 0.01% (1.84) 0.01% 0.31 0.01% (1.53)
with effect from September
17, 2020)
Tata Technolgies SRL, 0.11% 59.13 (0.01)% 0.70 0.13% 3.87 (0.04)% 4.57
Romania
Tata Manufacturing 0.08% 45.07 0.06% (8.04) 0.08% 2.26 0.05% (5.78)
Technologies Consulting
(Shanghai) Limited
Tata Technologies Europe 1.62% 893.49 (0.56)% 75.63 2.82% 81.85 (1.49)% 157.48
Limited
Tata Technologies Nordics 0.01% 6.99 (0.00)% 0.48 0.12% 3.57 (0.04)% 4.05
AB (Name changed from
Escenda Engineering AB
with effect from November
2, 2020)
INCAT GmbH (in process of 0.04% 20.27 (0.00)% 0.40 (0.01)% (0.35) (0.00)% 0.05
liquidation)
Tata Technologies 0.00% (0.82) 0.04% (6.01) (0.00)% (0.01) 0.06% (6.02)
(Thailand) Limited
TATA Technologies Pte Ltd. 1.49% 822.38 (0.10)% 13.51 (0.62)% (17.99) 0.04% (4.48)
Jaguar Land Rover 38.70% 21,378.39 (0.02)% 3.08 0.00% - (0.03)% 3.08
Automotive plc
Jaguar Land Rover Limited 87.19% 48,168.48 128.27% (17,254.65) (22.82)% (661.86) 169.80% (17,916.51)
Jaguar Land Rover Holdings 86.80% 47,954.95 (19.70)% 2,649.88 0.00% - (25.11)% 2,649.88
Limited
JLR Nominee Company 0.00% 0.00 0.00% - 0.00% - 0.00% -
Limited
Jaguar Land Rover (South 4.02% 2,220.76 (2.16)% 290.99 0.00% - (2.76)% 290.99
Africa) Holdings Limited
Jaguar Cars Limited 0.00% - 0.00% - 0.00% - 0.00% -
Land Rover Exports Limited 0.00% 0.00 0.00% - 0.00% - 0.00% -
The Lanchester Motor 0.00% 0.00 0.00% - 0.00% - 0.00% -
Company Limited
The Daimler Motor 0.03% 15.11 0.00% - 0.00% - 0.00% -
Company Limited
S.S. Cars Limited 0.00% 0.00 0.00% - 0.00% - 0.00% -
Daimler Transport Vehicles 0.00% 0.00 0.00% - 0.00% - 0.00% -
Limited

(` in crores)
As % of
loss
Jaguar Land Rover Pension 0.00% - 0.00% - 0.00% - 0.00% -
Trustees Limited
Jaguar Cars South Africa 0.00% - 0.00% - 0.00% - 0.00% -
(Pty) Limited
Jaguar Land Rover Slovakia 10.52% 5,813.35 (0.81)% 109.59 (9.41)% (272.92) 1.55% (163.33)
s.r.o
Jaguar Racing Limited 0.05% 27.87 (0.05)% 6.64 0.00% - (0.06)% 6.64
InMotion Ventures Limited (0.46)% (256.47) 0.03% (3.80) 0.00% - 0.04% (3.80)
Lenny Insurance Limited (0.17)% (91.76) 0.57% (76.94) 0.00% - 0.73% (76.94)
(Renamed as In-Car
Ventures Limited w.e.f.
February 2, 2021)
InMotion Ventures 2 Limited (0.10)% (57.50) 0.11% (14.14) 0.00% - 0.13% (14.14)
InMotion Ventures 3 Limited (0.04)% (20.95) 0.09% (12.74) 0.00% - 0.12% (12.74)
InMotion Ventures 4 Limited 0.00% - (0.08)% 11.19 0.00% - (0.08)% 11.19
(Shareholding reduced
from 100% to 15% w.e.f.
December 1, 2020)
Jaguar Land Rover Ireland 0.17% 93.39 (0.61)% 82.48 (0.12)% (3.41) (0.75)% 79.07
(Services) Limited
Spark44 (JV) Limited 0.12% 67.81 (0.12)% 16.50 (0.39)% (11.36) (0.05)% 5.14
Spark44 Limited (London & 0.18% 101.67 (0.00)% 0.01 0.00% 0.06 (0.00)% 0.07
Birmingham)
Spark44 Pty Ltd (Sydney) 0.01% 6.95 (0.00)% 0.00 0.01% 0.39 (0.00)% 0.39
Spark44 GmbH (Frankfurt) 0.02% 8.77 0.00% (0.00) (0.01)% (0.40) 0.00% (0.40)
Spark44 GLLC (LA & NYC) 0.08% 41.72 (0.00)% 0.01 0.02% 0.47 (0.00)% 0.48
Spark44 Shanghai Limited 0.05% 29.32 (0.00)% 0.01 0.09% 2.67 (0.03)% 2.67
Spark44 Middle East DMCC 0.02% 11.49 (0.00)% 0.00 (0.01)% (0.40) 0.00% (0.39)
(Dubai)
Spark44 Demand Creation 0.00% 0.52 0.00% (0.00) 0.03% 0.78 (0.01)% 0.78
Partners Pte Ltd (Mumbai)
Spark44 Pte Ltd (Singapore) 0.01% 3.07 (0.00)% 0.00 0.00% 0.01 (0.00)% 0.01
Spark44 Communicacions 0.01% 5.16 0.00% (0.00) 0.01% 0.21 (0.00)% 0.21
SL (Madrid)
Spark44 SRL (Rome) 0.00% 0.20 (0.00)% 0.00 0.04% 1.10 (0.01)% 1.10
Spark44 Seoul Limited 0.01% 4.37 0.00% 0.00 (0.00)% (0.05) 0.00% (0.05)
Spark44 K.K. (Tokyo) 0.01% 4.83 0.00% 0.00 0.01% 0.29 (0.00)% 0.29
Spark44 Canada Inc 0.02% 8.46 0.00% 0.00 (0.00)% (0.02) 0.00% (0.02)
(Toronto)
Spark44 South Africa (Pty) 0.00% 1.51 0.00% 0.00 (0.01)% (0.26) 0.00% (0.26)
Limited
Spark44 Colombia S.A.S. 0.00% (0.60) 0.00% 0.00 0.00% 0.04 (0.00)% 0.04
Spark44 Taiwan Limited 0.00% 0.50 0.00% (0.00) 0.01% 0.15 (0.00)% 0.15
Limited Liability Company 0.31% 169.76 (1.07)% 143.93 0.00% - (1.36)% 143.93
Jaguar Land Rover (Russia)
Jaguar Land Rover (China) 33.05% 18,258.90 (23.39)% 3,146.42 0.00% - (29.82)% 3,146.42
Investment Co. Limited

Consolidated
(` in crores)
As % of
loss
Shanghai Jaguar Land 0.00% - 0.00% - 0.00% - 0.00% -
Rover Automotive Services
Company Limited
Jaguar Land Rover 0.00% (0.67) (0.08)% 10.51 0.00% - (0.10)% 10.51
Columbia S.A.S
Jaguar Land Rover 0.09% 51.01 (0.06)% 7.52 0.00% - (0.07)% 7.52
Mexico,S.A.P.I. de C.V.
Jaguar Land Rover 0.00% - 0.00% - 0.00% - 0.00% -
Servicios Mexico,S.A. de C.V.
Jaguar Land Rover France, 0.17% 95.25 (0.33)% 44.48 0.00% - (0.42)% 44.48
SAS
Jaguar Land Rover Portugal 0.12% 66.38 (0.05)% 6.66 0.00% - (0.06)% 6.66
- Veiculos e Pecas, Lda.
Jaguar Land Rover Espana 0.91% 502.67 0.00% (0.41) 0.19% 5.58 (0.05)% 5.17
SL
Jaguar Land Rover Italia 1.31% 725.13 (0.01)% 1.11 0.00% - (0.01)% 1.11
SpA
Land Rover Ireland Limited 0.01% 4.93 0.00% (0.23) 0.00% - 0.00% (0.23)
Jaguar Land Rover Korea 0.11% 59.00 (0.05)% 6.43 0.00% - (0.06)% 6.43
Company Limited
Jaguar Land Rover 1.14% 629.76 (0.09)% 11.92 0.90% 26.03 (0.36)% 37.95
Deutschland GmbH
Jaguar Land Rover Austria 0.16% 90.76 (0.06)% 8.53 0.00% - (0.08)% 8.53
GmbH
Jaguar Land Rover Australia 0.83% 456.55 (0.85)% 113.84 0.00% - (1.08)% 113.84
Pty Limited
Jaguar Land Rover North 7.57% 4,179.44 (4.64)% 624.01 0.01% 0.36 (5.92)% 624.37
America LLC
Jaguar Land Rover Japan 0.62% 343.31 0.30% (40.52) 0.00% - 0.38% (40.52)
Limited
Jaguar Land Rover Canada 1.16% 643.11 (0.41)% 55.65 0.00% - (0.53)% 55.65
ULC
Jaguar e Land Rover Brasil 1.41% 778.13 (0.48)% 64.64 0.00% - (0.61)% 64.64
industria e Comercio de
Veiculos LTDA
Jaguar Land Rover Belux 0.16% 90.80 (0.07)% 9.52 0.00% - (0.09)% 9.52
NV
Jaguar Land Rover 0.09% 48.31 0.01% (1.31) 0.00% - 0.01% (1.31)
Nederland BV
Jaguar Land Rover (South 0.04% 24.03 (1.63)% 219.37 0.00% - (2.08)% 219.37
Africa) (Pty) Limited
Jaguar Land Rover 0.07% 41.40 (0.08)% 10.55 0.00% - (0.10)% 10.55
Singapore Pte. Ltd
Jaguar Land Rover Taiwan 0.07% 39.51 (0.23)% 31.60 0.00% - (0.30)% 31.60
Company Limited
Jaguar Land Rover Classic 0.01% 3.58 0.04% (5.80) (0.01)% (0.17) 0.06% (5.97)
Deutschland GmbH
Jaguar Land Rover Hungary 0.02% 12.47 (0.06)% 8.61 (0.03)% (0.74) (0.07)% 7.88
KFT

(` in crores)
As % of
loss
Jaguar Land Rover Classic 0.00% - 0.00% - 0.00% - 0.00% -
USA LLC
Bowler Motors Limited 0.00% 0.77 0.06% (8.18) 0.00% - 0.08% (8.18)
Jaguar Land Rover Ventures 0.00% - 0.00% - 0.00% - 0.00% -
Limited
Jaguar Land Rover (Ningbo) 0.00% - 0.00% - 0.00% - 0.00% -
Trading Co. Limited
Tata Daewoo Commercial 0.03% 16.23 0.01% (1.35) 0.02% 0.72 0.01% (0.63)
Vehicle Sales and
Distribution Co. Ltd.
PT Tata Motors Distribusi 0.01% 5.77 0.18% (23.62) (0.22)% (6.41) 0.28% (30.03)
Indonesia
TMNL Motor Services 0.00% (0.24) 0.00% (0.02) 0.00% 0.02 0.00% (0.00)
Nigeria Ltd
Minority Interests in all subsidiaries

Indian
Tata Marcopolo Motors Ltd (0.05)% (28.44) (0.33)% 44.74 (0.00)% (0.06) (0.42)% 44.68
Tata Technologies Ltd (0.97)% (535.00) 0.45% (61.19) (0.44)% (12.80) 0.70% (73.99)
Tata Motor Finance Limited (1.74)% (963.00) 0.21% (28.75) 0.00% - 0.27% (28.75)
Foreign
Tata Motors (SA) (0.01)% (7.42) 0.00% (0.65) (0.03)% (0.94) 0.02% (1.59)
(Proprietary) Ltd
Tata Precision Industries (0.01)% (2.98) 0.02% (2.21) 0.00% 0.01 0.02% (2.20)
Pte Ltd
Spark 44 Ltd (0.16)% (87.54) 0.06% (8.23) (0.20)% (5.67) 0.13% (13.90)
Tata Motors (Thailand) 0.09% 50.88 0.00% - 0.01% 0.31 (0.00)% 0.31
Limited
Joint operations
Indian
Fiat India Automobiles 4.01% 2,214.37 (2.15)% 288.67 0.03% 0.96 (2.75)% 289.64
Private Limited
Tata Cummins Private Ltd 1.15% 632.89 (0.53)% 70.70 0.19% 5.53 (0.72)% 76.23
Adjustments arising out of (259.15)% (143,172.70) 3.53% (475.10) 100.61% 2,917.60 (23.26)% 2,442.49
consolidation
Sub - total ( a ) 51,045.93 (13,072.42) 2,747.17 (10,325.26)
Joint ventures (as per proportionate consolidation / investment as per the equity method)
Indian
Tata HAL Technologies Ltd 0.00% 0.84 0.00% - 0.00% - 0.00% -
Foreign
Chery Jaguar Land Rover 5.73% 3,167.36 2.69% (362.48) 5.10% 147.99 2.03% (214.49)
Automotive Company
Limited
Sub - total ( b ) 3,168.20 (362.48) 147.99 (214.49)

Consolidated
(` in crores)
As % of
loss
Associates (Investment as per the equity method)
Indian
Tata AutoComp Systems Ltd 0.45% 251.29 0.23% (30.31) 0.08% 2.24 0.27% (28.06)
Automobile Corporation of 0.25% 138.25 0.04% (5.43) (0.01)% (0.36) 0.05% (5.80)
Goa Ltd
Tata Hitachi Construction 1.07% 591.76 (0.19)% 25.04 0.04% 1.14 (0.25)% 26.19
Machinery Company
Private Ltd
Loginomic Tech Solutions 0.00% - 0.00% - 0.00% - 0.00% -
Private Limited
Foreign
Nita Company Ltd 0.06% 33.69 0.04% (5.01) (0.04)% (1.02) 0.06% (6.03)
Tata Precision Industries 0.01% 3.91 0.00% - 0.00% - 0.00% -
(India) Ltd
Synaptiv Limited 0.00% 0.79 0.01% (0.77) 0.00% 0.11 0.01% (0.67)
Jaguar Land Rover 0.02% 10.04 0.00% 0.15 (0.00)% 0.15
Switzerland AG(Jaguar
Land Rover Limited
increased its shareholding
from 10% to 30%
w.e.f. November 25, 2020)
Cloud Car Inc 0.00% 0.19 0.00% - 0.11% 3.27 (0.03)% 3.27
DriveClubService Pte. Ltd. 0.00% - 0.00% - 0.00% - 0.00% -
Jaguar Cars Finance Limited 0.00% 2.68 0.00% - (0.02)% (0.49) 0.00% (0.50)
Sub - total ( c ) 1,032.59 (16.48) 5.03 (11.45)
Total ( b + c ) 4,200.79 (378.96) 153.02 (225.94)
Total ( a + b + c) 100.00% 55,246.72 100.00% (13,451.39) 100.00% 2,900.19 100.00% (10,551.20)

47. OTHER NOTES

(a) The following subsidiaries have been considered on unaudited basis. Details for the same as per individual entity’s
financials are as under :
(` in crores)
Net Worth Total Revenue for Net Increase / (Decrease)
As at the year ended in Cash & Cash equivalent
March 31, 2021 March 31, 2021 during 2020-2021
(i) Subsidiaries :
TML Business Services Limited (14.12) 92.75 16.55
Tata Motors European Technical Centre PLC 27.88 181.46 4.94
Trilix S.R.L (29.83) 78.57 5.55
Tata Hispano Motors Carrocera S.A (864.47) - 1.48
Tata Precision Industries Pte Ltd 13.70 - 9.80
Tata Technologies de Mexico, S.A. de C.V. 2.55 2.69 (1.92)
INCAT International Plc. 67.90 0.51 (2.88)
INCAT GmbH.(under liquidation) 20.27 0.34 0.04
Cambric Limited 20.46 - (0.24)
Tata Technlogies SRL Romania 59.13 62.55 8.71
Total (696.53) 418.87 42.03
For the year ended / as at March 31, 2020 (545.50) 998.30 (99.48)
(b) During the year ended March 31, 2021, exceptional charge of `14,994.30 crores was recognised under the Jaguar Land Rover’s
Reimagine strategy comprising following:
(i) Asset write-downs of £ 951.83 million (` 9,606.11 crores) in relation to models cancelled.
(ii) Restructuring costs of £ 533.88 million (`5,388.19 crores) includes costs of £ 526.36 million (`5,312.29 crores) accruals to
settle legal obligations on work performed to date and provisions for redundancies and other third party obligations and defined
benefit past service cost of £ 7.52 million (` 75.90 crores).
(c) Jaguar Land Rover had recognised a past service cost due to the requirement to equalise male and female members’ benefits for the
inequalities within guaranteed minimum pension (‘GMP’) earned in the year ended March 31, 2019. This assessment has been updated
during the year ended March 31, 2021 based on new information and accordingly, a charge of `84.81 crores (£ 9.00 million) has been
recognised as an exceptional item.
(d) The Company’s certain assets related to defence business are classified as “Held for Sale” as they meet the criteria laid out under Ind
AS 105. The transaction has been completed in April 2021.
(e) The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material
foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/
accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in
the books of account.
(f) During the year ended March 31, 2021, the Company and Marcopolo S.A. have entered into a share purchase agreement where the
Company will purchase the balance 49% shareholding in Tata Marcopolo Motors Ltd (TMML) for a cash consideration of `99.96 crores,
subject to certain closing conditions to be complied by both Parties. On completion of the transaction, TMML will become a wholly
owned subsidiary of the Company.
(g) The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards
Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020
on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The
Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial
statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

Consolidated
(h) Exceptional amount of `114.00 crores and `(73.03) crores during the year ended March 31, 2021 and 2020, is related to write off/
provision (reversal) of certain property, plant and equipment, capital work-in-progress and intangibles under development.
(i) Subsequent to March 31, 2021, Jaguar Land Rover agreed a revolving credit facility of `13,200.29 crores ( £1,310.00 million) which
will become available when the existing facility expires in July 2022. The new facility will be available in full until March 2024.

For B S R & Co. LLP

Company Secretary
Place- Mumbai
Date: May 18, 2021 Date: May 18, 2021

Summarised statement of Assets and Liabilities (CONSOLIDATED)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
WHAT THE COMPANY OWNED
(1) Property, plant and equipment and Other intangible assets 152,377.16 155,677.03
(2) Right of use assets 6,490.66 6,275.34
(3) Goodwill 803.72 777.06
(4) Non-current Investments 5,569.09 5,446.94
(5) Non-current Finance receivables 16,846.82 16,833.77
(6) Deferred tax assets (net) 5,523.65 6,609.95
(7) Other non-current assets 8,627.06 10,913.92
(8) Current assets 146,887.64 119,587.25
TOTAL ASSETS 343,125.80 322,121.26
WHAT THE COMPANY OWED

(1) Net worth
Equity share capital 765.81 719.54
Other equity 54,480.91 62,358.99
(2) Non-controlling interests 1,573.49 813.56
(3) Non-current borrowings 93,112.77 83,315.62
(4) Non-current provisions 13,606.76 14,736.69
(5) Deferred tax liabilities (net) 1,555.89 1,941.87
(6) Other non-current liabilities 20,280.99 17,780.94
(7) Current liabilities 157,749.18 140,454.05
TOTAL LIABILITIES 343,125.80 322,121.26

Consolidated
Summarised Statement of Profit and Loss (CONSOLIDATED)
(` in crores)
March 31, 2021 March 31, 2020
1 INCOME
Revenue 246,972.17 258,594.36
Other Operating Revenues 2,822.58 2,473.61
Total revenue from operations 249,794.75 261,067.97
Other income 2,643.19 2,973.15
Total 252,437.94 264,041.12
2 EXPENDITURE
Cost of materials consumed 141,357.27 152,671.47
Purchase of products for sale 12,250.09 12,228.35
Changes in inventories of finished goods, work-in-progress and products for sale 4,684.16 2,231.19
Employee benefits expense 27,648.48 30,438.60
Finance costs 8,097.17 7,243.33
Foreign exchange (gain)/loss (net) (1,732.15) 1,738.74
Product development/Engineering expenses 5,226.63 4,188.49
Other expenses 40,921.97 57,087.46
Amount transferred to capital and other accounts (12,849.13) (17,503.40)
Total Expenses 249,151.20 271,749.66
Profit/(loss) before exceptional items and tax 3,286.74 (7,08.54)
Total Exceptional items 13,761.02 2,871.44
3 PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS (10,474.28) (10,579.98)
4 Tax expense/(credit) (net) 2,541.86 395.25
5 PROFIT/(LOSS) AFTER TAX FROM CONTINUING OPERATIONS (3-4) (13,016.14) (10,975.23)
6 Share of profit of joint ventures and associates (net) (378.96) (1,000.00)
7 PROFIT/(LOSS) FOR THE YEAR (13,395.10) (11,975.23)
8 TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) 2,919.34 11,504.47
9 TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR (10,475.76) (470.76)

FINANCIAL STATISTICS - CONSOLIDATED
CAPITAL ACCOUNTS (` in lakhs) REVENUE ACCOUNTS (` in lakhs) RATIOS

Earnings Per Share Dividend Per
Profit/ Profit/
Reserves Dividend (Basic)* (`) Share*# (`) Net Worth
Year Gross Accumulated (Loss) (Loss) PAT to
Capital and Borrowings Net Block Turnover Depreciation Taxes including ‘A’ ‘A’ Per
Block Depreciation Before After Sales Ordinary Ordinary
Surplus tax Ordinary Ordinary Share* (`)
Taxes Taxes Share Share
Share Share
2001-02 31,982 183,617 282,031 634,984 252,475 382,509 932,220 39,222 (18,015) (6,740) (10,719) 45 (1.1)% (3.95) - - - 66
2002-03 31,983 190,018 178,965 648,959 284,038 364,921 1,144,801 40,190 54,350 22,640 29,712 14,497 2.6% 9.29 - 4.00 - 66
2003-04 35,683 329,884 169,842 728,468 323,749 404,719 1,634,104 42,556 144,487 53,077 91,529 32,099 5.6% 27.88 - 8.00 - 104
2004-05 36,179 403,537 271,420 834,162 375,933 458,229 2,284,217 53,101 184,809 49,062 138,534 52,346 6.1% 38.50 - 12.50! - 121
2005-06 38,287 574,860 337,914 1,027,949 484,356 543,593 2,750,725 62,331 234,898 64,000 172,809 58,439 6.3% 45.86 - 13.00 - 160
2006-07 38,541 733,626 730,190 1,294,083 542,665 751,418 3,707,579 68,809 308,800 88,321 216,999 68,822 5.9% 56.43 - 15.00 - 200
2007-08 38,554 831,198 1,158,487 1,892,393 606,049 1,286,344 4,060,827 78,207 308,629 85,154 216,770 67,674 5.3% 56.24 - 15.00 - 225
2008-09 51,405 542,659 3,497,385 6,900,238 3,326,905 3,573,333 7,489,227 250,677 (212,925) 33,575 (250,525) 36,458 (3.3)% (56.88) (56.88) 6.00 6.50 114
2009-10 57,060 763,588 3,519,236 7,291,985 3,441,352 3,850,633 9,736,054 388,713 352,264 100,575 257,106 100,185 2.6% 48.64 49.14 15.00 15.50 144
2010-11 63,771 1,853,376 3,281,055 8,291,975 3,969,870 4,322,105 12,684,370 465,551 1,043,717 121,638 927,362 148,130 7.3% 155.25 155.75 20.00 20.50 302
2011-12 63,475 3,206,375 4,714,896 10,572,497 4,951,247 5,621,250 17,133,935 562,538 1,353,387 (4,004) 1,351,650 148,862 7.9% 42.58** 42.68** 4.00** 4.10** 103
2012-13 63,807 3,699,923 5,371,571 12,158,556 5,172,265 6,986,291 19,451,406 760,128 1,364,733 377,666 989,261 75,614 5.1% 31.02 31.12 2.00 2.10 118
2013-14 64,378 6,660,345 6,064,228 16,619,078 6,881,538 9,737,540 23,745,502 1,107,816 1,886,897 476,479 1,399,102 76,577 5.9% 43.51 43.61 2.00 2.10 209
2014-15 64,378 5,561,814 7,361,039 18,684,665 7,442,406 11,242,259 26,760,664 1,338,863 2,170,256 764,291 1,398,629 (3,319) 5.2% 43.44 43.54 0.00 0.00 175
2015-16 67,918 8,010,349 7,046,849 21,639,756 8,754,689 12,885,067 28,107,844 1,701,418 1,398,087 287,260 1,102,375 11,052 3.9% 32.61 32.71 0.20 0.30 238
2016-17 67,922 5,738,267 7,860,398 19,653,773 6,756,813 12,896,960 27,524,666 1,790,499 931,479 325,123 745,436 - 2.7% 21.94 22.04 - - 171
2017-18 67,922 9,474,869 8,895,047 25,312,610 9,179,519 16,133,091 29,629,823 2,155,359 1,115,503 434,193 898,891 - 3.0% 26.46 26.56 - - 281
2018-19 67,922 5,950,034 10,617,534 26,365,294 12,128,250 14,237,044 30,490,371 2,359,063 (3,137,115) (243,745) (2,882,623) - (9.5)% (84.89) (84.89) - - 177
2019-20 71,954 6,235,899 11,881,052 30,752,494 14,557,257 16,195,237 26,404,112 2,142,543 (1,057,998) 39,525 (1,207,085) - (4.6)% (34.88) (34.88) - - 182
2020-21 76,581 5,448,091 13,590,451 33,385,256 17,498,474 15,886,782 25,243,794 2,354,671 (1,047,428) 254,186 (1,345,139) - (5.3)% (36.99) (36.99) - - 152
Notes :
@ On increased capital base due to conversion of Bonds / Convertible Debentures / Warrants / FCCN into shares.
* Equivalent to a face value of `2/- per share.
# Includes Interim Dividend where applicable.
! Includes a special dividend of ` 2.50 per share for the Diamond Jubilee Year.
++ On increased capital base due to Rights issue and conversion of FCCN into shares.
^ On increased capital base due to GDS issue and conversion of FCCN into shares.
^^ On increased capital base due to QIP issue and conversion of FCCN into shares.
** Consequent to sub-division of shares, figures for previous years are not comparable
^^^ The figures of FY 2016-17 is as per Ind AS

Consolidated
Summarised statement of Assets and Liabilities (STANDALONE)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
WHAT THE COMPANY OWNED
(1) Property, plant and equipment, Right of use assets and Other intangible assets 29,330.47 29,603.69
(2) Goodwill 99.09 99.09
(3) Non-current Investments 16,114.91 15,730.86
(4) Deferred tax assets (net) 715.31 727.97
(5) Other non-current assets 2,945.29 2,859.50
(6) Current assets 15,854.59 13,568.76
TOTAL ASSETS 65,059.66 62,589.87
WHAT THE COMPANY OWED

(1) Net worth
Equity share capital 765.81 719.54
Other equity 18,290.16 17,668.11
(2) Non-current borrowings 16,326.77 14,776.51
(3) Non-current lease liabilities 593.74 522.24
(4) Non-current provisions 1,371.94 1,769.74
(5) Deferred tax liabilities (net) 266.50 198.59
(6) Other non-current liabilities 1,193.19 1,124.32
(7) Current liabilities 26,251.55 25,810.82
TOTAL LIABILITIES 65,059.66 62,589.87

Summarised Statement of Profit and Loss (Standalone)
(` in crores)
March 31, 2021 March 31, 2020
1 INCOME
Revenue from operations 47,031.47 43,928.17
Other income 842.96 1,383.05
Total 47,874.43 45,311.22
2 EXPENDITURE
Cost of materials consumed 30,010.61 26,171.85
Purchase of products for sale 5,490.67 5,679.98
Changes in inventories of finished goods, work-in-progress and products for sale (69.02) 722.68
Employee benefits expense 4,212.99 4,384.31
Finance costs 2,358.54 1,973.00
Foreign exchange loss (net) 1.67 239.00
Product development/Engineering expenses 907.64 830.24
Other expenses 5,801.90 7,720.75
Amount transferred to capital and other accounts (817.53) (1,169.46)
Total Expenses 51,579.08 49,927.64
Profit before exceptional items and tax (3,704.65) (4,616.42)
Total Exceptional items (1,392.08) 2,510.92
3 PROFIT BEFORE TAX FROM CONTINUING OPERATIONS (2,312.57) (7,127.34)
4 TAX EXPENSE/(CREDIT) (NET) 82.87 162.29
5 PROFIT/(LOSS) AFTER TAX FROM CONTINUING OPERATIONS (3-4) (2,395.44) (7,289.63)
6 TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) 442.99 (378.72)
7 TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR (1,952.45) (7,668.35)

Consolidated
FINANCIAL STATISTICS
CAPITAL ACCOUNTS (` in lakhs) REVENUE ACCOUNTS (` in lakhs) RATIOS

Profit/ Profit/ Earnings Per Share Dividend Per Net
Reserves Dividend (Basic)* (`) Share*# (`) Worth Per
Year Gross (Loss) (Loss) PAT to 'A' 'A'
Capital and Borrowings Depreciation Net Block Turnover Depreciation Taxes including Ordinary Ordinary
Block Before After Sales Ordinary Ordinary Share*
Surplus tax Share Share
Taxes Taxes Share Share (`)
1945-46 100 1 - 31 2 29 12 2 1 - 1 - 8.3% 0.07 - - - 10
1949-50 200 11 94 233 44 189 167 15 11 5 6 - 3.6% 0.03 - - - 10
1953-54 500 27 412 731 270 461 321 97 3 - 3 - 0.9% 0.11 - - - 11
1954-55 627 27 481 792 303 489 445 35 - - - - 0.0% - - - - 11
1955-56 658 120 812 1,010 407 603 1,198 105 125 32 93 59 7.8% 1.32 - 0.60 - 12
1956-57 700 149 1,382 1,352 474 878 2,145 70 116 27 89 44 4.1% 1.64 - 0.80 - 13
1957-58 700 117 1,551 1,675 668 1,007 2,694 129 99 6 93 52 3.5% 1.72 - 0.90 - 12
1958-59 1,000 206 1,245 2,050 780 1,270 2,645 113 155 13 142 56 5.4% 1.68 - 0.90 - 12
1959-60 1,000 282 1,014 2,201 940 1,261 2,825 161 222 93 129 108 4.6% 1.50 - 1.25 - 13
1960-61 1,000 367 1,263 2,593 1,118 1,475 3,735 180 313 122 191 126 5.1% 2.26 - 1.45 - 14
1961-62 1,000 432 1,471 2,954 1,336 1,618 4,164 220 378 188 190 124 4.6% 2.28 - 1.45 - 15
1962-63 1,000 450 1,758 3,281 1,550 1,731 4,364 223 327 185 142 124 3.3% 1.68 - 1.45 - 15
1963-64 1,198 630 2,470 3,920 1,802 2,118 5,151 260 404 200 204 144 4.0% 1.97 - 1.45 - 16
1964-65 1,297 787 3,275 4,789 2,144 2,645 6,613 345 479 208 271 157 4.1% 2.39 - 1.45 - 17
1965-66 1,640 995 3,541 5,432 2,540 2,892 7,938 398 477 189 288 191 3.6% 2.20 - 1.45 - 18
1966-67 1,845 1,027 4,299 6,841 3,039 3,802 9,065 505 620 192 428 235 4.7% 2.80 - 1.45+ - 17
1967-68 1,845 1,121 5,350 7,697 3,608 4,089 9,499 572 395 66 329 235 3.5% 2.10 - 1.45 - 18
1968-69 1,845 1,295 5,856 8,584 4,236 4,348 10,590 630 582 173 409 235 3.9% 2.66 - 1.45 - 19
1969-70 1,845 1,333 6,543 9,242 4,886 4,356 9,935 662 274 - 274 221 2.8% 1.72 - 1.35 - 19
1970-71 1,845 1,516 6,048 10,060 5,620 4,440 13,624 749 673 270 403 251 3.0% 2.49 - 1.45 - 20
1971-72 1,949 2,020 6,019 10,931 6,487 4,444 15,849 758 885 379 506 273 3.2% 3.04 - 1.50 - 23
1972-73 1,949 2,194 5,324 12,227 7,491 4,736 15,653 820 832 360 472 266 3.0% 2.87 - 1.50 - 24
1973-74 1,949 2,394 6,434 13,497 8,471 5,026 16,290 902 1,007 450 557 180 3.4% 3.43 - 0.93 - 26
1974-75 1,949 2,827 9,196 15,838 9,593 6,245 22,510 1,134 677 136 541 266 2.4% 3.32 - 1.50 - 28
1975-76 2,013 3,691 9,399 18,642 10,625 8,017 27,003 1,054 855 91 764 276 2.8% 4.60 - 1.50 - 33
1976-77 2,328 3,833 11,816 20,709 11,685 9,024 28,250 1,145 1,056 - 1,056 323 3.7% 5.38 - 1.50+ - 30
1977-78 2,118 4,721 11,986 22,430 12,723 9,707 28,105 1,101 1,044 - 1,044 313 3.7% 5.37 - 1.50 - 35
1978-79 3,151 5,106 11,033 24,900 13,895 11,005 37,486 1,200 1,514 - 1,514 467 4.0% 5.36 - 1.60+ - 27
1979-80 3,151 6,263 17,739 28,405 15,099 13,306 44,827 1,300 1,762 - 1,762 605 3.9% 5.96 - 2.00 - 31
1980-81 3,151 8,095 15,773 33,055 16,496 16,559 60,965 1,616 2,437 - 2,437 605 4.0% 8.27 - 2.00 - 38
1981-82 4,320 10,275 25,476 38,819 18,244 20,575 79,244 1,993 4,188 - 4,188 839 5.3% 10.18 - 2.00+ - 35
1982-83 4,226 12,458 23,361 43,191 20,219 22,972 86,522 2,187 3,481 460 3,021 827 3.5% 7.34 - 2.00 - 40
1983-84 5,421 14,103 25,473 46,838 23,078 23,760 85,624 2,923 2,163 235 1,928 923 2.3% 3.61 - 2.00 - 37
1984-85 5,442 15,188 30,226 52,819 26,826 25,993 93,353 3,895 2,703 390 2,313 1,241 2.5% 4.32 - 2.30 - 39
1985-86 5,452 16,551 44,651 61,943 29,030 32,913 102,597 3,399 1,832 215 1,617 1,243 1.6% 3.00 - 2.30 - 41
1986-87 5,452 15,886 53,476 68,352 30,914 37,438 119,689 2,157 293 - 293 552 0.2% 0.51 - 1.00 - 40
1987-88 6,431 17,491 44,406 75,712 34,620 41,092 140,255 3,822 3,205 510 2,695 1,356 1.9% 4.25 - 2.30 - 38
1988-89 10,501 30,740 32,396 83,455 38,460 44,995 167,642 4,315 8,513 1,510 7,003 2,444 4.2% 6.74 - 2.50 - 40
1989-90 10,444 37,870 48,883 91,488 43,070 48,418 196,910 4,891 14,829 4,575 10,254 3,126 5.2% 9.87 - 3.00 - 47
1990-91 10,387 47,921 48,323 100,894 48,219 52,675 259,599 5,426 23,455 9,250 14,205 4,154 5.5% 13.69 - 4.00 - 56
1991-92 11,765 61,863 105,168 123,100 54,609 68,491 317,965 6,475 20,884 7,800 13,084 4,389 4.1% 12.45 - 4.00 - 67
1992-93 12,510 64,207 144,145 153,612 61,710 91,902 309,156 7,456 3,030 26 3,004 3,642 1.0% 2.47 - 3.00 - 63
1993-94 12,867 70,745 141,320 177,824 70,285 107,539 374,786 9,410 10,195 20 10,175 5,020 2.7% 7.91 - 4.00 - 65
1994-95 13,694 128,338 115,569 217,084 81,595 135,489 568,312 11,967 45,141 13,246 31,895 8,068 5.6% 23.29 - 6.00 - 104
1995-96 24,182 217,400 128,097 294,239 96,980 197,259 790,967 16,444 76,072 23,070 53,002 14,300 6.7% 21.92 - 6.00 - 100
1996-97 25,588 339,169 253,717 385,116 117,009 268,107 1,012,843 20,924 100,046 23,810 76,236 22,067 7.5% 30.40 - 8.00 - 143
1997-98 25,588 349,930 330,874 487,073 141,899 345,174 736,279 25,924 32,880 3,414 29,466 15,484 4.0% 11.51 - 5.50 - 147
1998-99 25,590 350,505 344,523 569,865 165,334 404,531 659,395 28,132 10,716 970 9,746 8,520 1.5% 3.81 - 3.00 - 147
1999-00 25,590 349,822 300,426 581,233 182,818 398,415 896,114 34,261 7,520 400 7,120 7,803 0.8% 2.78 - 2.50 - 147
2000-01 25,590 299,788 299,888 591,427 209,067 382,360 816,422 34,737 (50,034) - (50,034) - - (18.45) - - - 127
2001-02 31,982 214,524 230,772 591,006 243,172 347,834 891,806 35,468 (10,921) (5,548) (5,373) - - (1.98) - - - 77
2002-03 31,983 227,733 145,831 608,114 271,307 336,807 1,085,874 36,213 51,037 21,026 30,011 14,430 2.8% 9.38 - 4.00 - 81
2003-04 35,683 323,677 125,977 627,149 302,369 324,780 1,555,242 38,260 129,234 48,200 81,034 31,825 5.2% 24.68 - 8.00 - 102
2004-05 36,179 374,960 249,542 715,079 345,428 369,651 2,064,866 45,016 165,190 41,495 123,695 51,715 6.0% 34.38 - 12.50! - 114
2005-06 38,287 515,420 293,684 892,274 440,151 452,123 2,429,052 52,094 205,338 52,450 152,888 56,778 6.3% 40.57 - 13.00 - 145
2006-07 38,541 648,434 400,914 1,128,912 489,454 639,458 3,206,467 58,629 257,318 65,972 191,346 67,639 6.0% 49.76 - 15.00 - 178
2007-08 38,554 745,396 628,052 1,589,579 544,352 1,045,227 3,357,711 65,231 257,647 54,755 202,892 65,968 6.0% 52.64 - 15.00 - 203
2008-09 51,405 1,171,610 1,316,556 2,085,206 625,990 1,459,216 2,949,418 87,454 101,376 1,250 100,126 34,570 3.4% 22.70 23.20 6.00 6.50 238
2009-10 57,060 1,439,487 1,659,454 2,364,896 721,292 1,643,604 4,021,755 103,387 282,954 58,946 224,008 99,194 5.6% 42.37 42.87 15.00 15.50 262
2010-11 63,771 1,937,559 1,591,543 2,568,235 846,625 1,721,610 5,160,692 136,077 219,652 38,470 181,182 146,703 3.5% 30.28 30.78 20.00 20.50 315
2011-12 63,475 1,899,126 1,588,057 2,902,206 996,587 1,905,619 5,979,502 160,674 134,103 9,880 124,223 146,372 2.1% 3.90** 4.00** 4.00** 4.10** 62
2011-13 63,807 1,849,677 1,679,895 3,181,998 1,161,144 2,020,854 5,140,793 181,762 17,493 (12,688) 30,181 72,423 0.6% 0.93 1.03 2.00 2.10 60
2013-14 64,378 1,853,287 1,505,280 3,514,652 1,355,088 2,159,564 4,159,103 207,030 (102,580) (136,032) 33,452 74,196 0.8% 1.03 1.13 2.00 2.10 60
2014-15 64,378 1,421,881 2,113,441 3,785,500 1,603,098 2,182,402 4,141,264 260,322 (397,472) 76,423 (473,895) - -11.4% (14.72) (14.72) - - 46
2015-16 67,918 2,168,890 1,588,725 4,077,235 1,852,749 2,224,486 4,877,959 245,375 15,039 (8,384) 23,423 7,300 0.5% 0.68 0.78 0.20 0.30 66
2016-17 67,922 2,012,993 1,957,398 4,591,464 1,853,922 2,737,542 5,007,925 296,939 (242,077) 5,922 (247,999) - -5.0% (7.30) (7.30) - - 61
2017-18 67,922 1,949,176 1,846,384 4,826,322 2,156,196 2,670,126 6,118,229 310,189 (94,692) 8,793 (103,485) - -1.7% (3.05) (3.05) - - 59
2018-19 67,922 2,148,330 1,863,963 5,158,440 2,311,007 2,847,433 7,175,742 309,864 239,893 37,833 202,060 - 2.8% 5.94 6.04 - - 65
2019-20 71,954 1,766,811 2,544,477 5,614,576 2,654,207 2,960,369 4,531,122 337,529 (712,734) 16,229 (728,963) - -16.1% (21.06) (21.06) - - 51
2020-21 76,581 1,829,016 2,174,872 5,814,264 2,881,217 2,933,047 4,787,443 368,161 (231,257) 8,287 (239,544) - -5.0% (6.59) (6.59) - - 50
Notes :
@ On increased capital base due to conversion of Bonds / Convertible Debentures / Warrants / FCCN into shares.
$ On increased capital base due to issue of Bonus Shares. Net Worth excludes ordinary dividends.
* Equivalent to a face value of `2/- per share.
# Includes Interim Dividend where applicable.
+ Including on Bonus Shares issued during the year.
! Includes a special dividend of ` 2.50 per share for the Diamond Jubilee Year.
++ On increased capital base due to Rights issue and conversion of FCCN into shares.
^ On increased capital base due to GDS issue and conversion of FCCN into shares.
^^ On increased capital base due to QIP issue and conversion of FCCN into shares.
** Consequent to sub-division of shares, figures for previous years are not comparable
^^^ The figures of FY 2016-17 is as per Ind AS with Joint operation

STATEMENT PURSUANT TO FIRST PROVISO TO SUB-SECTION (3) OF SECTION 129 OF THE COMPANIES
ACT 2013, READ WITH RULE 5 OF COMPANIES (ACCOUNTS) RULES, 2014 IN THE PRESCRIBED FORM AOC-1
RELATING TO SUBSIDIARY COMPANIES
PART - A
Share
capital (incl. Profit/ Investments
Profit/ Profit/ Proposed
advances Reserves Tax (Loss) (except in case
Sr. Reporting Exchange Total Total (Loss) (Loss) dividend % of
Subsidiary Country towards and Turnover Expense/ for the of investment
No currency Rate Assets Liabilities Before after and tax shareholding
capital Surplus (Credit) period/ in the
Tax tax thereon
where year * subsidiaries)
applicable)
1 TML Business Services Limited [name changed India INR 1.00 244.18 (258.30) 86.10 100.21 99.00 (13.98) (5.26) (8.72) (8.72) 15.34 - 100.00
from Concorde Motors (India) Limited w.e.f
March 31, 2020]
2 Tata Motors Finance Ltd India INR 1.00 1,571.28 2,431.44 36,817.49 32,814.77 3,733.38 219.55 (30.57) 250.12 250.12 - 869.80 100.00
3 Tata Daewoo Commercial Vehicle Co. Ltd South KRW 0.06 57.57 1,783.10 3,734.52 1,893.85 3,433.73 (89.46) 53.60 (143.06) (143.06) - - 100.00
(subsidiary w.e.f March 30, 2004) Korea
4 Tata Technologies Ltd (subsidiary w.e.f India INR 1.00 41.81 825.54 1,936.52 1,069.11 1,050.84 146.45 42.08 104.37 104.37 - 497.08 74.42
September 10, 1997)
5 Tata Motors Insurance Broking & Advisory India INR 1.00 5.00 57.13 132.94 70.81 215.90 30.54 7.88 22.66 22.66 - 57.78 100.00
Services Ltd (subsidiary w.e.f October 21,
2004)
6 Tata Motors European Technical Centre Plc UK GBP 100.77 474.57 (446.69) 168.77 140.89 185.75 (12.71) 1.59 (14.30) (14.30) - - 100.00
(subsidiary w.e.f September 1, 2005)
7 TML Distribution Company Ltd (subsidiary India INR 1.00 225.00 143.52 404.29 35.77 32.54 8.04 0.55 7.49 7.49 - 119.83 100.00
w.e.f March 28, 2008)
8 Tata Motors (SA) (Proprietary) Ltd (subsidiary South ZAR 4.95 12.98 5.51 271.61 253.12 136.99 2.24 0.62 1.62 1.62 - - 60.00
w.e.f December 5, 2007) Africa
9 TMF Holdings Ltd (Name changed from Tata India INR 1.00 3,128.28 2,122.96 7,999.14 2,747.90 57.77 (92.64) 17.42 (110.06) (110.06) - 843.71 100.00
Motors Finance Limited w.e.f. June 30, 2017)
(subsidiary w.e.f June 1, 2006)
10 Tata Motors Financial Solutions Ltd (subsidiary India INR 1.00 1,700.50 (130.20) 8,222.64 6,652.34 735.91 202.38 (13.86) 216.24 216.24 - 370.97 100.00
w.e.f January 19, 2015)
11 Tata Marcopolo Motors Ltd (subsidiary w.e.f India INR 1.00 170.00 (111.45) 383.29 324.74 264.64 (91.34) (0.04) (91.30) (91.30) - - 51.00
September 20, 2006)
12 Tata Motors (Thailand) Ltd (subsidiary w.e.f Thailand THB 2.34 985.45 (1,610.88) 77.84 703.28 23.36 10.18 - 10.18 10.18 - - 97.21
February 28, 2008)
13 TML Holdings Pte Ltd, Singapore (subsidiary Singapore GBP 100.77 12,691.10 (4,586.34) 19,084.00 10,979.25 - (826.82) 0.02 (826.83) (826.83) - 201.53 100.00
w.e.f February 4, 2008)
14 Brabo Robotics and Automation Limited India INR 1.00 9.90 (15.83) 5.91 11.85 8.38 (33.64) (0.10) (33.54) (33.54) - - 100.00
15 JT Special Vehicles Pvt. Limited (Ceased to be India INR 1.00 5.00 (3.09) 3.37 1.45 27.03 18.97 (1.18) 20.15 20.15 - - 100.00
a JV and became a Wholly-owned Subsidiary
16 TML Business Analytics Services Limited India INR 1.00 0.15 (9.42) 7.14 16.42 - (9.42) - (9.42) (9.42) 100.00
(Incorporated with effect from April 4, 2020)
17 Tata Hispano Motors Carrocera S.A (subsidiary Spain EUR 85.78 2.88 (867.36) 8.20 872.67 - (17.73) - (17.73) (17.73) - - 100.00
w.e.f October 16, 2009)
18 Tata Hispano Motors Carroceries Maghreb Morocco MAD 8.07 146.30 (201.02) 40.84 95.55 0.11 (6.14) - (6.14) (6.14) - - 100.00
19 Trilix S.r.l (subsidiary w.e.f October 4, 2010) Italy EUR 85.78 0.61 (30.44) 16.03 45.86 78.87 15.14 11.59 3.55 3.55 - - 100.00
20 Tata Precision Industries Pte Ltd (subsidiary Singapore SGD 54.36 41.56 (27.87) 14.01 0.31 - 10.22 - 10.22 10.22 - - 78.39
21 PT Tata Motors Indonesia (subsidiary w.e.f Indonesia IDR 0.01 375.40 (81.24) 295.26 1.09 - (0.86) (0.02) (0.84) (0.84) - - 100.00
December 29, 2011)
22 INCAT International Plc. (subsidiary w.e.f UK GBP 100.77 2.45 45.04 47.58 0.09 0.14 0.49 0.09 0.40 0.40 - - 74.42
October 3, 2005)
23 Tata Technologies Inc. (Including Midwest USA USD 73.11 875.19 (399.18) 625.82 149.81 771.11 77.83 20.63 57.20 57.20 - - 74.48
Managed Services Inc.which got merged into
Tata Technologies Inc. w.e.f. Feb 28, 2018)
(subsidiary w.e.f October 3, 2005)
24 Tata Technologies de Mexico, S.A. de C.V. Mexico MXN 3.58 0.63 1.95 4.23 1.65 2.73 (1.00) - (1.00) (1.00) - - 74.48
25 Cambric Limited, Bahamas (subsidiary w.e.f Bahamas USD 73.11 19.74 0.72 20.46 - 0.00 (0.02) - (0.02) (0.02) - - 74.48
May 1, 2013)

Consolidated
Share
Tax tax thereon
applicable)
26 Cambric GmbH (subsidiary w.e.f May 1, 2013) Germany EUR 85.78 - - - - - 0.08 - 0.08 0.08 - - 74.48
27 Tata Technolgies SRL, Romania (erstwhile Romania RON 17.23 5.36 54.53 67.41 7.52 64.91 5.31 0.76 4.55 4.55 - - 74.48
Cambric Consulting SRL was renamed w.e.f
February 4, 2015) (subsidiary w.e.f May
1, 2013)
28 Tata Manufacturing Technologies Consulting China CNY 11.16 3.43 35.89 59.57 20.24 46.70 (12.43) 0.00 (12.43) (12.43) - - 74.42
(Shanghai) Limited .(subsidiary w.e.f March
10, 2014)
29 Tata Technologies Europe Limited (subsidiary UK GBP 100.77 0.11 893.38 1,167.38 273.89 668.63 96.04 18.41 77.63 77.63 - - 74.42
30 Tata Technologies Nordics AB (Name changed Sweden SEK 8.38 0.18 6.68 70.16 63.30 86.87 0.42 (0.13) 0.55 0.55 - - 74.42
from Escenda Engineering AB with effect from
November 2,2020)
31 INCAT GmbH (subsidiary w.e.f October 3, 2005) Germany EUR 85.78 1.41 18.86 20.33 0.07 0.34 0.40 1.35 (0.95) (0.95) - - 74.42
32 Tata Technologies (Thailand) Limited Thailand THB 2.34 8.25 (9.06) 7.09 7.89 9.64 (5.88) - (5.88) (5.88) - - 74.42
33 TATA Technologies Pte Ltd. (subsidiary w.e.f Singapore USD 73.11 394.81 427.57 850.92 28.54 97.79 13.55 0.20 13.36 13.36 - - 74.42
December 7, 2005)
34 Jaguar Land Rover Automotive plc (subsidiary UK GBP 100.77 15,121.28 6,257.14 77,910.61 56,532.19 - 3.01 - 3.01 3.01 - - 100.00
w.e.f June 2, 2008)
35 Jaguar Land Rover Holdings Limited(formally UK GBP 100.77 50.38 47,904.59 57,626.46 9,671.49 2.02 2,775.81 181.16 2,594.65 2,594.65 - - 100.00
known as Land Rover) (subsidiary w.e.f June
2, 2008)
36 Jaguar Land Rover Limited (previously Jaguar UK GBP 100.77 35,878.00 12,075.60 313,385.81 265,432.22 168,110.84 (16,723.89) 136.83 (16,860.72) (16,860.72) - - 100.00
Cars Limited) (subsidiary w.e.f June 2, 2008)
37 Jaguar Land Rover North America, LLC. USA USD 73.11 292.45 3,898.59 15,472.84 11,281.80 46,570.56 1,114.63 (25.70) 1,140.33 1,140.33 - - 100.00
38 Jaguar Land Rover Deutschland GmbH Germany EUR 85.78 114.25 505.41 4,027.77 3,408.11 8,103.35 41.10 54.70 (13.60) (13.60) - - 100.00
(subsidiary w.e.fJune 2, 2008)
39 Jaguar Land Rover Belux N.V. (subsidiary w.e.f Belgium EUR 85.78 10.72 80.23 1,084.14 993.18 2,646.85 21.56 6.97 14.59 14.59 - - 100.00
June 2, 2008)
40 Jaguar Land Rover Austria GmbH (subsidiary Austria EUR 85.78 1.24 90.94 602.60 510.41 1,466.45 15.78 3.91 11.87 11.87 - - 100.00
w.e.f June 2, 2008)
41 Jaguar Land Rover Italia SpA (subsidiary w.e.f Italy EUR 85.78 353.97 371.45 3,482.03 2,756.62 6,104.90 58.55 23.77 34.78 34.78 - - 100.00
June 2, 2008)
42 Jaguar Land Rover Australia Pty Limited Australia AUD 55.71 3.90 459.21 2,630.64 2,167.53 3,039.03 72.10 19.76 52.34 52.34 - - 100.00
43 Jaguar Land Rover Espana SL Spain EUR 85.78 357.20 115.03 1,248.37 776.15 2,005.71 28.80 7.02 21.78 21.78 - - 100.00
44 Jaguar Land Rover Nederland BV (subsidiary Holland EUR 85.78 0.39 47.40 462.75 414.96 1,099.73 5.31 3.42 1.89 1.89 - - 100.00
w.e.f June 2, 2008)
45 Jaguar Land Rover Portugal-Veiculos e Pecas, Portugal EUR 85.78 11.41 54.97 246.90 180.53 419.12 12.18 2.59 9.59 9.59 - - 100.00
Lda. (subsidiary w.e.f June 2, 2008)
46 Jaguar Land Rover (China) Investment Co Ltd China CNY 11.16 74.76 18,015.61 34,433.91 16,343.54 38,536.42 4,235.61 1,061.86 3,173.75 3,173.75 - - 100.00
47 Shanghai Jaguar Land Rover Automotive China LRE CNY 11.16 17.85 (23.18) 21.34 26.66 6.91 0.40 1.03 (0.63) (0.63) - - 100.00
Service Co. Ltd (subsidiary w.e.f March
10, 2014)
48 Jaguar Land Rover Japan Limited (subsidiary Japan JPY 0.66 31.72 310.01 1,210.32 868.59 2,321.28 40.50 20.13 20.37 20.37 - - 100.00
49 Jaguar Land Rover Korea Co. Ltd.(subsidiary Korea KRW 0.06 0.32 75.83 1,016.18 940.03 2,417.24 69.25 25.39 43.85 43.85 - - 100.00
w.e.f June 2, 2008)
50 Jaguar Land Rover Canada, ULC (subsidiary Canada CAD 58.03 - 642.06 2,447.32 1,805.25 4,513.34 59.82 10.51 49.31 49.31 - - 100.00
w.e.f June 2, 2008)
51 Jaguar Land Rover France SAS (subsidiary France EUR 85.78 37.44 57.35 1,511.66 1,416.86 5,071.56 68.51 22.71 45.81 45.81 - - 100.00
52 Jaguar e Land Rover Brasil Indústria e Brazil BRL 12.89 795.05 (462.85) 1,452.77 1,120.57 1,616.75 25.31 21.81 3.50 3.50 - - 100.00
Comércio de Veículos LTDA (subsidiary w.e.f
June 2, 2008)

Share
Tax tax thereon
applicable)
53 Limited Liability Company Jaguar Land Russia RUB 0.97 4.68 174.28 1,248.59 1,069.63 4,238.02 230.61 53.77 176.84 176.84 - - 100.00
Rover (Russia) (incorporated on 25-5-2008)
(subsidiary w.e.f May 15, 2009)
54 Jaguar Land Rover (South Africa) Holdings UK GBP 100.77 0.00 31,228.64 32,118.87 890.22 - 5,545.67 98.03 5,447.64 5,447.64 - - 100.00
Limited (subsidiary w.e.f February 2, 2009)
55 Jaguar Land Rover (South Africa) (Pty) Limited South ZAR 4.95 0.00 73.89 979.48 905.59 1,810.29 281.56 78.98 202.58 202.58 - - 100.00
(subsidiary w.e.f June 2, 2008) Africa
56 Jaguar Land Rover India Limited (subsidiary India INR 1.00 280.25 (88.89) 800.57 609.21 1,096.59 30.13 14.66 15.47 15.47 - - 100.00
57 Daimler Transport Vehicles Limited (subsidiary UK GBP 100.77 - - - - - - - - - - - 100.00
w.e.f June 2, 2008) (dormant)
58 S S Cars Limited (subsidiary w.e.f June 2, UK GBP 100.77 - - - - - - - - - - - 100.00
2008) (dormant)
59 The Lanchester Motor Company Limited UK GBP 100.77 - - - - - - - - - - - 100.00
(subsidiary w.e.f June 2, 2008) (dormant)
60 The Daimler Motor Company Limited UK GBP 100.77 15.11 - 15.11 - - - - - - - - 100.00
61 Jaguar Land Rover Pension Trustees Limited UK GBP 100.77 - - - - - - - - - - - 100.00
62 JLR Nominee Company Limited UK GBP 100.77 - - - - - - - - - - - 100.00
63 Jaguar Cars Limited (subsidiary w.e.f June 2, UK GBP 100.77 - - - - - - - - - - - 100.00
2008) (dormant)
64 Land Rover Exports Limited UK GBP 100.77 - - - - - - - - - - - 100.00
65 Land Rover Ireland Limited - (no longer a Ireland EUR 85.78 0.00 4.92 19.34 14.43 - - - - - - - 100.00
trading NSC) (subsidiary w.e.f June 2, 2008)
66 Jaguar Cars (South Africa) (Pty) Ltd (subsidiary South ZAR 4.95 - - - - - - - - - - - 100.00
w.e.f June 2, 2008) (dormant) Africa
67 Jaguar Land Rover Slovakia s.r.o. (JLRHL Slovakia EUR 85.78 5,361.23 440.08 9,624.66 3,823.36 2,347.33 106.04 - 106.04 106.04 - - 100.00
0.01% and JLRL 99.99%)
68 Jaguar Land Rover Singapore Pte. Ltd Singapore SGD 54.36 4.08 37.61 175.11 133.43 200.74 16.05 3.42 12.64 12.64 - - 100.00
(incorporated w.e.f November 25,2015)
(subsidiary w.e.f November 25, 2015)
69 Jaguar Racing Limited (Incorporated w.e.f. UK GBP 100.77 0.00 27.87 81.58 53.70 - 6.50 - 6.50 6.50 - - 100.00
February 2, 2016) (subsidiary w.e.f February
2, 2016)
70 InMotion Ventures Limited (Incorporated UK GBP 100.77 0.00 (256.47) 224.38 480.85 - (3.72) - (3.72) (3.72) - - 100.00
w.e.f. March 18, 2016) (subsidiary w.e.f March
18, 2016)
71 In-Car Ventures Limited ((Formerly Lenny UK GBP 100.77 - (91.76) 0.32 92.08 0.30 (75.33) - (75.33) (75.33) - - 100.00
Insurance Limited name change on February
2, 2021) (100% Shareholding transferred
from InMotion Ventures Limited to JLRHL on
February 18, 2021)
72 InMotion Ventures 2 Limited UK GBP 100.77 - (57.50) 25.97 83.47 8.64 (13.84) - (13.84) (13.84) - - 100.00
73 InMotion Ventures 3 Limited UK GBP 100.77 - (20.95) 285.35 306.30 32.78 (12.47) - (12.47) (12.47) - - 100.00
74 Jaguar Land Rover Colombia SAS (subsidiary Colombia COP 0.02 43.54 (46.00) 72.95 75.42 101.36 27.22 17.56 9.66 9.66 - - 100.00
w.e.f August 22, 2016)
75 Jaguar Landrover Mexico S.A.P I de C.V Mexico MXN 3.58 13.76 40.16 179.04 125.13 435.79 5.16 0.33 4.83 4.83 - - 100.00
76 Jaguar Landrover Services Mexico S.A C.V Mexico MXN 3.58 - - - - - - - - - - - 100.00
77 Jaguar Land Rover Taiwan Company Pte. Ltd Taiwan TWD 2.57 9.88 31.66 312.32 270.78 1,287.43 40.92 8.29 32.63 32.63 - - 100.00
78 Land Rover Ireland (Services) Limited Ireland EUR 85.78 0.00 79.50 203.31 123.80 184.38 76.94 4.85 72.09 72.09 - - 100.00
79 Jaguar Land Rover Classic USA LLC ( USA USD 73.11 - - - - - - - - - - - 100.00
Incorporated w.e.f June 1, 2018) (dormant)
80 Jaguar Land Rover Classic Deutschland GmbH Germany EUR 85.78 21.44 (17.87) 13.73 10.16 17.38 (5.68) - (5.68) (5.68) - - 100.00
(Incorporated w.e.f. August 10,2018)
81 Jaguar Land Rover Hungary KFT (Incorporated Hungary HUF 0.24 0.07 12.42 90.84 78.35 108.14 8.31 0.03 8.28 8.28 - - 100.00
w.e.f July 30, 2018)

Consolidated
Share
Tax tax thereon
applicable)
82 Jaguar Land Rover (Ningbo) Trading Co., Ltd. China CNY 11.16 1.12 487.52 1,481.33 992.70 5,062.45 591.66 112.79 478.87 478.87 - - 100.00
83 Jaguar Land Rover Ventures Limited UK GBP 100.77 - - - - - - - - - - - 100.00
84 Bowler Motors Limited (Name changed from UK GBP 100.77 30.23 (29.46) 16.97 16.20 0.54 (8.01) - (8.01) (8.01) - - 100.00
Jaguar Land Rover Auto Ventures Limited on
28 January 2020)
85 Spark44 (JV) Ltd (Shareholding changed from UK GBP 100.77 20.27 275.49 548.53 252.77 17.60 17.31 1.11 16.19 16.19 - - 50.50
50% to 50.50% w.e.f. August 31, 2017)
86 Spark44 Limited (London & Birmingham) UK GBP 100.77 0.00 101.67 176.84 75.17 15.14 16.89 2.23 14.56 14.56 - - 50.50
87 Spark44 LLC (LA & NYC) USA USD 73.11 - 30.26 38.16 7.90 0.05 1.93 (3.35) 5.28 5.28 - - 50.50
88 Spark44 Canada Inc (Toronto) Canada CAD 58.03 - 4.87 7.83 2.96 - 0.62 0.12 0.50 0.50 - - 50.50
89 Spark44 GmbH (Frankfurt) Germany EUR 85.78 0.18 6.52 22.06 15.35 1.03 (7.97) (0.36) (7.61) (7.61) - - 50.50
90 Spark44 Communicacions SL (Madrid) Spain EUR 85.78 0.02 4.44 7.89 3.50 0.10 (0.44) 0.23 (0.67) (0.67) - - 50.50
91 Spark44 SRL (Rome) Italy EUR 85.78 0.07 (0.88) 6.18 6.00 - 0.16 0.11 0.05 0.05 - - 50.50
92 Spark44 Pty Ltd (Sydney) Australia AUD 55.71 0.00 3.84 4.96 1.11 - 1.22 0.37 0.85 0.85 - - 50.50
93 Spark44 Middle East DMCC (Dubai) UAE AED 19.92 0.02 2.27 3.25 0.98 - 0.40 - 0.40 0.40 - - 50.50
94 Spark44 Limited (Seoul) Korea KRW 0.06 0.00 0.00 0.00 0.00 - 0.00 0.00 0.00 0.00 - - 50.50
95 Spark44 Pte Ltd (Singapore) Singapore SGD 54.36 - 1.78 2.58 0.92 - 0.64 0.05 0.59 0.59 - - 50.50
96 Spark44 K.K. (Tokyo) Japan JPY 0.66 0.00 0.03 0.06 0.03 - 0.01 0.00 0.01 0.01 - - 50.50
97 Spark44 Demand Creation Partners Pte Ltd India INR 1.00 0.02 (0.02) 0.02 0.01 - (0.00) - (0.00) (0.00) - - 50.50
(Mumbai)
98 Spark44 South Africa (Pty) Limited South ZAR 4.95 0.00 0.09 0.20 0.12 - 0.00 0.00 0.00 0.00 - - 50.50
Africa
99 Spark44 Limited (Shanghai) China CNY 11.16 0.12 3.21 5.79 2.54 0.18 1.26 0.32 0.94 0.94 - - 50.50
100 Spark44 Taiwan Limited (Taiwan) (Incorporated Taiwan TWD 2.57 0.00 0.01 0.04 0.03 - (0.00) 0.00 (0.00) (0.00) - - 50.50
w.e.f. May 7,2018)
101 Spark44 Colombia S.A.S (Colombia) Colombia COP 0.02 0.00 (0.00) 0.00 0.00 - 0.00 0.00 0.00 0.00 - - 50.50
(Incorporated w.e.f. May 10,2018)
102 TMNL Motor Services Nigeria Ltd Nigeria NGN 0.18 0.33 (0.57) - 0.24 - (0.02) - (0.02) (0.02) - - 100.00
(incorporated w.e.f September 2, 2015)
(subsidiary w.e.f September 2, 2015)
103 Tata Daewoo Commercial Vehicle Sales and South KRW 0.06 4.00 12.23 82.17 65.94 67.49 (1.65) (0.30) (1.35) (1.35) - - 100.00
Distribution Co. Ltd. (subsidiary w.e.f April Korea
9, 2010)
104 PT Tata Motors Distribusi Indonesia (subsidiary Indonesia IDR 0.01 292.41 (286.64) 99.19 93.42 11.23 (23.64) (0.02) (23.34) (23.34) - - 100.00
Details of Direct subsidiaries, on consolidated basis including their respective subsidiaries included above
1 Tata Technologies Limited (subsidiary w.e.f 41.81 2,083.88 3,556.19 1,430.51 2,388.33 315.28 76.09 239.19 239.19 - 497.07 74.42
September 10, 1997)
2 Tata Motors Finance Holdings Ltd (subsidiary 4,332.01 397.93 45,700.54 40,970.60 4,490.38 288.77 (3.18) 291.95 291.95 - 2,084.48 100.00
w.e.f June 1, 2006)
3 TML Holdings Pte Ltd, Singapore** (subsidiary - - - - - - - - - - - 100.00
TML Holdings Pte Ltd, Singapore holds fully Jaguar Land Rover Automtive Plc,Tata Daewoo Commercial Vehicle Co. Ltd. and PT Tata Motors Indonesia, the consolidated accounts of which are given below :
1 Jaguar Land Rover Automotive Plc 11,282.71 41,734.57 237,300.85 184,283.57 193,782.73 (8,256.40) 2,278.69 (10,535.09) (10,535.09) - 16,095.38 100.00
Consolidated (subsidiary w.e.f June 2, 2008)
2 Tata Daewoo Commercial Vehicle Co. Ltd 57.57 1458.56 3,393.36 1,877.33 3,315.73 (91.11) 53.30 (144.41) (144.42) - - 100.00
(subsidiary w.e.f March 30, 2004)
3 PT Tata Motors Indonesia (subsidiary w.e.f 150.06 375.21 2,354.10 1,828.83 1,983.69 (82.44) 23.87 (106.31) (106.31) - - 100.00
December 29, 2011)
* Profit for the year is after share of minority interest and share of profit/(loss) in respect of investment in associate companies.

STATEMENT PURSUANT TO SECTION 129 (3) OF THE COMPANIES ACT, 2013 RELATED TO ASSOCIATE
COMPANIES AND JOINT VENTURES
PART - B
Sr. Name of Associates/Joint Ventures Shares of Associate/Joint Ventures held Profit/(loss) for the year
No by the company on the year end
Latest audited No. Amount of Extent of Networth Considered Not Description Reason why the
Balance Sheet Investment Holding % attributable in Considered of how associate/ joint venture
Date in Associates/ to Shareholding Consolidation in there is is not consolidated
Joint Venture as per latest (` in crore) Consolidation significant
(` in crore) audited Balance (` in crore) influence
Sheet (` in crore)
Joint Operations
1 Fiat India Automobiles Private Limited March 31, 2021 122,257,983 1,567.04 50.00% 2,214.37 288.67 - Note (a) -
2 Tata Cummins Private Ltd March 31, 2021 90,000,000 90.00 50.00% 632.89 70.70 - Note (a) -
Joint ventures
1 Chery Jaguar Land Rover Automotive Co Ltd March 31, 2021 - 2,126.45 50.00% 3,168.04 (417.41) - Note (a) -
2 Tata HAL Technologies Limited March 31, 2021 50,70,000 - 37.21% - - - There is no Provision for impairment
significant was considered in full in
influence. FY 16-17
3 Loginomic Tech Solutions Private Limited March 31, 2021 665,000 - 26.00% - - - Note (a) -
(“TruckEasy”)
Associates
1 Tata AutoComp Systems Ltd March 31,2021 52,333,170 77.47 26.00% 251.29 (30.30) - Note (b) -
2 Nita Company Ltd March 31,2021 16,000 1.27 40.00% 33.76 (4.95) - Note (b) -
3 Automobile Corporation of Goa Ltd March 31,2021 29,82,214 108.22 49.77% 136.87 (5.43) - Note (b) -
4 Jaguar Cars Finance Limited March 31, 2021 49,900 3.61 49.90% 2.73 - - Note (b) -
5 Synaptiv Limited March 31, 2021 15,600,000 1.57 37.50% 0.79 - - Note (b) -
6 CloudCar Inc March 31, 2021 133,255,012 - 26.30% - - - Note (b) -
7 DriveClubService Pte. Ltd. March 31, 2021 251 2.02 25.07% - - - Note (b) -
8 Jaguar Land Rover Switzerland AG (Jaguar Land March 31, 2021 300 10.08 30.00% 10.08 Note (b) -
Rover Limited increased its shareholding from 10%
to 30% w.e.f. November 25, 2020)
9 Tata Hitachi Construction Machinery Company March 31,2021 45,428,572 238.50 39.99% 590.05 25.04 - Note (b) -
Private Ltd
10 Tata Precision Industries (India) Limited March 31,2021 200,000 - 39.19% 3.91 - - Note (b) -
Unaudited financials considered for Consolidation
Note :
(a) - There is a significant influence by virtue of joint control
(b) - There is a significant influence due to percentage (%) of share capital

Financial Statements

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Financial Statements

Uploaded by

Copyright:

Available Formats

Standalone

Independent Auditors’ Report

170 | 76th Integrated Annual Report 2020-21

Other Information As part of an audit in accordance with SAs , we exercise professional

Resilience and Rebound | 171

172 | 76th Integrated Annual Report 2020-21

Resilience and Rebound | 173

Annexure A to the Independent Auditors’ Report – 31 March 2021

Amount Amount paid under Forum where dispute is

* includes refunds adjusted by the authorities.

Resilience and Rebound | 175

176 | 76th Integrated Annual Report 2020-21

Annexure B to the Independent Auditors’ Report 31 March 2021

Resilience and Rebound | 177

See accompanying notes to financial statements

SHIRAZ VASTANI VEDIKA BHANDARKAR [DIN: 00033808] P B BALAJI

Statement of Profit and Loss

See accompanying notes to financial statements

SHIRAZ VASTANI VEDIKA BHANDARKAR [DIN: 00033808] P B BALAJI

Resilience and Rebound | 179

Cash Flow Statement

180 | 76th Integrated Annual Report 2020-21

Cash Flow Statement

See accompanying notes to financial statements

SHIRAZ VASTANI VEDIKA BHANDARKAR [DIN: 00033808] P B BALAJI

Resilience and Rebound | 181

B. OTHER EQUITY (REFER NOTE 22)

76th Integrated Annual Report 2020-21

See accompanying notes to financial statements

SHIRAZ VASTANI VEDIKA BHANDARKAR [DIN: 00033808] P B BALAJI

A. EQUITY SHARE CAPITAL

Balance as at March 31, 2020 719.54

B. OTHER EQUITY (REFER NOTE 22)

Issue of Share warrants - - 867.50 - - - - - - - 867.50

See accompanying notes to financial statements

SHIRAZ VASTANI VEDIKA BHANDARKAR [DIN: 00033808] P B BALAJI

Membership No. 103334 Place- Mumbai Place- Mumbai

Resilience and Rebound

NOTES FORMING PART OF FINANCIAL STATEMENTS

184 | 76th Integrated Annual Report 2020-21

NOTES FORMING PART OF FINANCIAL STATEMENTS

Resilience and Rebound | 185

NOTES FORMING PART OF FINANCIAL STATEMENTS

186 | 76th Integrated Annual Report 2020-21

NOTES FORMING PART OF FINANCIAL STATEMENTS

Resilience and Rebound | 187

NOTES FORMING PART OF FINANCIAL STATEMENTS

NOTES FORMING PART OF FINANCIAL STATEMENTS

Resilience and Rebound | 189

NOTES FORMING PART OF FINANCIAL STATEMENTS

(v) Post-retirement medicare scheme s. Share based payments

190 | 76th Integrated Annual Report 2020-21

NOTES FORMING PART OF FINANCIAL STATEMENTS

Resilience and Rebound | 191

NOTES FORMING PART OF FINANCIAL STATEMENTS

192 | 76th Integrated Annual Report 2020-21

NOTES FORMING PART OF FINANCIAL STATEMENTS

Resilience and Rebound | 193

NOTES FORMING PART OF FINANCIAL STATEMENTS

• Repayable on demand or • Whether quarterly returns/ statements

194 | 76th Integrated Annual Report 2020-21

Additions - 119.48 1,708.36 5.20 7.20 23.06 - - - - - - 1,863.30

Resilience and Rebound