MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2021-22

Further, the Internal Control Systems have been designed to provide reasonable assurance with regard to recording and providing reliable nancial and operational information. In the highly networked IT environment of the Company, validation of IT Security receives focussed attention from IT specialists and Statutory Auditors. The Chief Internal Auditor reports administratively to the Chairman of the Board and functionally to the Audit Committee. The Internal Audit function develops an audit plan for the Company, which covers, inter alia, corporate, core business operations, as well as support functions. The Audit Committee reviews the annual internal audit plan. Signicant audit observations are presented to the Audit Committee, together with the status of the management actions and the progress of the implementation of the recommendations. The Audit Committee reviews the adequacy and effectiveness of the Company's internal control environment and monitors the implementation of audit recommendations. During the year, the Company has taken steps to review and document the adequacy and operating effectiveness of internal controls. Nonetheless, your Company recognises that any internal control framework, no matter how well designed, has inherent limitations and accordingly, regular audits and review processes ensure that such systems are reinforced on an ongoing basis. Your Company's Management has carried out the evaluation of design and operative effectiveness of these controls and noted no signicant deciencies/material weaknesses that might impact nancial statements as at the Balance Sheet date. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Overview The nancial statements have been prepared in accordance with Ind AS as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notied under Section 133 of the Companies Act, 2013 (the 'Act') and other relevant provisions of the Act. The Group's consolidated nancial statements have been prepared in compliance with Ind AS 110 on Consolidation of Accounts and presented in a separate section. The framework is a combination of entity level controls (including Enterprise Risk Management, Legal Compliance Framework, Internal Audit and Anti-Fraud Mechanisms such as Ethics Framework, Code of Conduct, Whistle Blower Policy, etc.), process level controls, information technology based controls, period end financial reporting and closing controls. FINANCIAL INFORMATION [STANDALONE] Property, Plant and Equipment and Intangible Assets st As at 31 March, 2022, the Property, Plant and Equipment and Intangible Assets stood at Rs. 19,567 crores as st compared to Rs. 18,137 crores as at 31 March, 2021. During the year, the Company incurred capital expenditure of Rs. 3,247 crores (previous year Rs. 3,385 crores). The major items of capital expenditure were on new product development and capacity enhancement. Borrowings Long-term borrowings Short-term borrowings Unclaimed matured deposits Total 5,678 812 0.1 6,490 F22 (1,312) 139 0.0 (1,173) Inc./(Dec.) 6,990 673 0.1 7,663 F21 (Rs. in crores) Borrowings Borrowings have decreased from Rs. 7,663 crores in the previous year to Rs. 6,490 crores in the current year mainly due to repayments in the current year. MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 133