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

345 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS Significant changes in Contract assets during the year are as follows:— Rupees crores Particulars 2023 2022 Reclassification of opening balances of contract assets to trade receivables.......................................................................................... 44.74 92.21 Adjustments due to contract modification........................................................................................................................................................................... 0.48 0.84 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 2023 2022 Assets recognised from cost incurred to fulfil a contract ...................................................................................................................................... 767.27 723.42 Amortisation expenses recognised as cost of providing services during the year ............................................................................... 54.71 51.21 15. Inventories Rupees crores Particulars 2023 2022 Raw materials and bought—out components [includes in-transit Rs. 881.12 crores (2022: Rs. 641.01 crores)].................................................................................................................... 7,292.16 4,491.90 Work-in-progress...................................................................................................................................................................................................................................... 463.55 277.02 Work-in-progress-property development activity and long term contracts................................................................................................. 2,210.09 1,879.21 Finished goods produced................................................................................................................................................................................................................... 4,684.94 3,268.45 Stock-in-trade [includes in-transit Rs. 4.90 crores (2022: Rs. 3.93 crores)].............................................................................................. 1,335.56 1,110.29 Manufactured components.............................................................................................................................................................................................................. 494.55 290.16 Stores and spares ................................................................................................................................................................................................................................. 279.93 181.20 Loose tools.................................................................................................................................................................................................................................................. 81.40 84.03 Food, beverages, smokes and operating supplies............................................................................................................................................................ 12.79 13.56 Total ................................................................................................................................................................................................................................................................ 16,854.97 11,595.82 (a) The cost of inventories recognised as an expense during the year was Rs. 83,424.50 crores (2022: Rs. 58,327.89 crores) (b) The cost of inventories recognised as an expense include Rs. 201.51 crores (2022: Rs. 95.57 crores) in respect of write-down of inventories to net realisable value, and has been reduced by Rs. 98.68 crores (2022: Rs. 64.14 crores) in respect of the reversal of such write downs. (c) Certain companies in the Group have availed working capital facilities and other non-fund based facilities viz. bank guarantees and letters of credit, which are secured by hypothecation of inventories. (d) Mode of valuation of inventories is stated in Note 2 (i). 14. Other Assets (Non-Financial) (contd.)