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

265 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS 20. Provisions Rupees crores Particulars Non-Current Current 2023 2022 2023 2022 Provision for Employee Benefits................................................................................................................ 731.61 578.68 147.97 117.37 Provision for Warranty...................................................................................................................................... 448.42 316.67 350.51 265.30 Provision for Service Coupons.................................................................................................................... 27.06 29.80 108.35 81.11 Total Provisions .................................................................................................................................................. 1,207.09 925.15 606.83 463.78 Provision for warranty relates to provision made in respect of sale of certain products and components, the estimated cost of which is accrued at the time of sale. The products are generally covered under a free warranty period ranging from 1 to 8 years. Provision for employee benefits includes gratuity, provident fund, post retirement benefits, compensated absence etc. The movement in provision for warranty and service coupon is as follows : Rupees crores Particulars Warranty Service coupons 2023 2022 2023 2022 Opening Balance.................................................................................................................................................. 581.97 572.29 110.91 98.25 Addition due to the scheme of Arrangement................................................................................. — 7.18 — 0.67 Additional net provisions recognised during the year............................................................... 589.24 272.29 151.64 116.93 Amounts utilised during the year............................................................................................................ (389.58) (292.14) (126.89) (107.99) Unwinding of discount...................................................................................................................................... 26.57 22.35 3.96 3.05 Reclassified as held for sale........................................................................................................................ (9.28) — (4.22) — Closing Balance .................................................................................................................................................. 798.93 581.97 135.41 110.91 21. Income Taxes Deferred Tax (Assets)/Liabilities (Net) Rupees crores Particulars Balance as at 01-04-2022 Acquisitions through business combinations Charge/(credit) to Profit or Loss Charge/(credit) to OCI Balance as at 31-3-2023 Tax effect of items resulting in taxable temporary differences Allowances on Property, Plant and Equipment and Intangible Assets........................................................................................................................................ 2,109.51 — (182.54) — 1,926.95 Others....................................................................................................................................... 73.62 — 37.56 — 111.18 Tax effect of items resulting in deductible temporary differences Provision for employee benefits............................................................................ (220.66) — (22.49) (31.23) (274.38) Allowances for credit losses..................................................................................... (86.00) — 4.29 — (81.71) Long term capital losses............................................................................................. (48.65) — (41.70) — (90.35) Others....................................................................................................................................... (65.64) — (59.48) 3.72 (121.40) Total Deferred Tax (Assets)/Liabilities (Net) ......................................................... 1,762.18 — (264.37) (27.51) 1,470.29