MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 460 The revenue information above is based on the location of the customer. The non-current assets in the above table represent Property, plant and equipment, Capital work-in-progress, Goodwill, Other intangible assets, Intangibles under development, Income tax assets (Net) and Other non-current assets (Non-financial). Information about major customers During the year ended 31st March 2024 and 2023 respectively, revenues from transactions with a single external customer did not amount to 10 per cent or more of the Group’s revenues from external customers. 47. Contingent Liability & Commitments A. Contingent Liability: (a) Claims against the Group not acknowledged as debts comprise of: (i) Excise Duty, Sales Tax, and Service Tax claims disputed by the Group relating to issues of applicability and classification (before tax) aggregating Rs. 3,974.35 crores (2023: Rs. 3,646.89 crores). (ii) Other matters (before tax) (excluding claims where amounts are not ascertainable): Rs. 736.29 crores (2023: Rs. 567.14 crores). (b) Taxation matters: (i) Demands against the Group not acknowledged as debts and not provided for, relating to issues of deductibility and taxability in respect of which the Group is in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed: – Income-tax: Rs. 3,368.18 crores (2023: Rs. 2,098.42 crores) net off MAT credit. (ii) Items in respect of which the Group has succeeded in appeal, but the Income-tax Department is pursuing/likely to pursue in appeal/ reference and exclusive of the effect of similar matters in respect of assessments remaining to be completed: – Income-tax matters: Rs. 839.07 crores (2023: Rs. 740.59 crores). (c) In respect of (a) & (b) above, it is not practicable for the Group to estimate the closure of these issues and the consequential timings of cash flows, if any. (d) Financial guarantee given on behalf of associates/joint ventures companies (Refer Note 40 (b)(i)) (e) Share of contingent liabilities of joint venture/associates relating to claims not acknowledged as debts and taxation matters: Rs. 2,160.74 crores (2023: Rs. 2,134.34 crores). B. Commitments: (a) The estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 5,751.67 crores (2023: Rs. 2,926.43 crores) and other commitment is Rs. 706.41 crores (2023: Rs. 631.45 crores). (b) The Group has contractual obligations towards long-term material purchase commitments for Rs. 11,240.00 crores as at 31st March, 2024. (c) Share of capital commitment of joint venture/associates: Rs. 147.41 crores (2023: Rs. 136.54 crores). 48. Other information (a) Research and Development expenditure Expensed to the Consolidated Statement of Profit and Loss, including certain expenditure based on allocations made, aggregate Rs. 953.36 crores (2023: Rs. 858.48 crores). (b) During the year ended 31st March, 2024, the Company’s subsidiary detected a fraud at its Branch in Aizawl, Mizoram (“the Branch”), in respect of retail vehicle loans disbursed by it. The fraud was perpetrated in the Branch through collusion amongst some Branch employees, with segregated duties, by forgery of KYC and asset related documents and involvement of other external people including vehicle dealers, leading to embezzlement of such subsidiary’s funds. The Company’s subsidiary has appointed a law firm and an accounting firm to undertake a fact-finding assessment of the aforesaid suspected irregularities (“Assessment”). Based on the results of the Assessment by the accounting firm and the management, 2,887 loan accounts were identified by the management as potentially fraudulent in nature. These loans had an outstanding net recoverable balance of Rs. 135.86 crores as of 31st March, 2024, which have been fully provided. (c) On 16th March, 2024, the Company’s subsidiary experienced a cyber security incident resulting in non-availability of certain applications and systems for a period of 4 days. The Company’s subsidiary engaged cybersecurity specialists to assist in investigation of and response to the incident and remediation and restoration of the impacted applications and systems. By 22nd March, 2024, the Company’s subsidiary built back the impacted applications and systems from immutable backups. The core systems remained unimpacted and peripheral systems were restored by 25th March, 2024. The investigation by the cybersecurity specialists has been completed and they have confirmed that all the servers containing data pertaining to books of accounts have no evidence of unauthorized access. The Group continues to closely monitor the situation. 46. Segment Information (Continued)
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