MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE OVERVIEW The f inancial statements have been prepared in accordance with Ind AS as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notif ied under Section 133 of the Companies Act, 2013 (the 'Act') and other relevant provisions of the Act. The Group's consolidated f inancial statements have been prepared in compliance with Ind AS 110 on Consolidation of Accounts and presented in a separate section. FINANCIAL INFORMATION [STANDALONE] PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS st As at 31 March, 2023, the Property, Plant and Equipment and Intangible Assets stood at Rs. 19,772 crores as compared to Rs. st 20,167 crores as at 31 March, 2022. During the year, the Company incurred capital expenditure of Rs. 4,323 crores (previous year Rs. 3,349 crores). The major items of capital expenditure were on new product development and capacity enhancement. During the year, the Company has taken impairment of certain assets of trucks and buses business and certain asset transfers to a subsidiary company. Long-term borrowings Short-term borrowings Unclaimed matured deposits Total 2,332 2,312 0.1 4,644 F23 (3,350) 1,496 (0.6) (1,855) Inc./(Dec.) 5,682 816 0.7 6,499 F22 (Rs. in crores) Borrowings BORROWINGS Borrowings have decreased from Rs. 6,499 crores in the previous year to Rs. 4,644 crores in the current year mainly due to repayments in the current year. Raw materials and bought out components as a % of cost of materials consumed Finished goods and stock-in-trade as a % of sales of products 7.0% 4.4% F23 6.2% 5.1% F22 INVENTORIES Raw materials and bought out components as a percentage of cost of materials consumed has increased mainly on account of build up st for BS6.2 transition from 1 April, 2023 and also stocking of some of the critical components due to supply constraints. However, f inished goods and stock-in-trade as a percentage of sales of products have decreasedmainly on account of focus on inventory management and higher sales traction of new products. 136