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

323 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 Year ended 31 st March, 2021 Rupees crores Particulars Opening Balance Recognised in Profit or Loss Recognised in OCI Recognised in Business combination/ Disposal of subsidiaries Foreign exchange translation differences Closing Balance Tax effect of items resulting in taxable temporary differences Fiscal allowances on property, plant and equipment and intangible assets......................................................... 2,353.87 (101.37) — (10.26) (8.48) 2,233.76 Undistributed profit of associates. .................................. 20.47 31.21 (20.96) — — 30.72 Others................................................................................. 73.28 35.16 (1.26) — (0.40) 106.78 2,447.62 (35.00) (22.22) (10.26) (8.88) 2,371.26 Tax effect of items resulting in deductible temporary differences Provision for employee benefits...................................... 314.05 (8.01) 23.32 (0.65) (0.63) 328.08 Allowances for expected credit loss................................ 781.54 460.28 24.51 (9.96) (0.02) 1,256.35 Carryforward tax losses..................................................... 412.72 29.53 — (3.51) (2.16) 436.58 MAT credit. ........................................................................ 50.47 (12.54) — (5.59) — 32.34 Unrealised gain on inter-company transactions (net).... 138.36 (15.44) — — — 122.92 Others................................................................................. 529.12 (119.74) (1.94) 9.93 0.78 418.15 2,226.26 334.08 45.89 (9.78) (2.03) 2,594.42 Net Deferred Tax Asset/(Liabilities) ...................................... (221.36) 369.08 68.11 0.48 6.85 223.16 Balances of Deferred Tax Assets / Deferred Tax Liabilities are presented in Balance sheet as below : Rupees crores 2022 2021 Deferred Tax Assets (net).......................................................................................................................................... 1,724.31 1,717.32 Deferred Tax Liabilities (net).................................................................................................................................... 1,786.10 1,494.16 Net Deferred Tax Asset/(Liabilities) . ....................................................................................................................... (61.79) 223.16 14. Other Assets (Non-Financial) Rupees crores Particulars Non Current Current 2022 2021 2022 2021 Capital Advances............................................................................................... 980.89 945.48 — — Balances with government authorities (other than current taxes). ............. 205.30 369.11 2,434.44 2,005.76 Contract Assets ................................................................................................. 4.38 8.84 149.85 87.06 Deferred Acquisition Cost . .............................................................................. 670.36 653.80 53.06 50.01 Others ................................................................................................................ 477.99 355.21 1,332.18 937.15 Total ................................................................................................................... 2,338.92 2,332.44 3,969.53 3,079.98 Others include advances to suppliers, prepaid expenses. Significant changes in Contract Assets during the year are as follows:- Rupees crores Particulars 2022 2021 Reclassification of opening balances of contract assets to trade receivables. .................................................... 92.21 63.21 Adjustments due to contract modification............................................................................................................. 0.84 0.70 In addition to the contract balances disclosed above, the group has also recognised a deferred acquisition cost in relation to some of the long-term contracts. Rupees crores Particulars 2022 2021 Assets recognised from cost incurred to fulfil a contract .................................................................................... 723.42 703.81 Amortisation expenses recognised as cost of providing services during the year ............................................. 51.21 48.72 13. Current Tax and Deferred Tax (contd.)