MAHINDRA & MAHINDRA LTD. Consolidated Accounts 435 46. 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. 4,117.33 crores (2024 : Rs. 3,974.35 crores). (ii) Other matters (before tax) (excluding claims where amounts are not ascertainable) : Rs. 761.11 crores (2024 : Rs. 736.29 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. 3,305.84 crores (2024 : Rs. 3,368.18 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. 836.28 crores (2024 : Rs. 839.07 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 39 (b)(i)) (e) Share of contingent liabilities of joint venture/associates relating to claims not acknowledged as debts and taxation matters : Rs. 2,285.05 crores (2024: Rs. 2,160.74 crores). B. Commitments: (a) The estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 3,833.12 crores (2024 : Rs. 5,751.67 crores) and other commitment is Rs. 770.58 crores (2024 : Rs. 706.41 crores). (b) The Group has contractual obligations towards long-term material purchase commitments for Rs. 7,500.00 crores (2024 : Rs. 11,240.00 crores). (c) Share of capital commitment of joint venture/associates: Rs. 98.48 crores (2024 : Rs. 147.41 crores). 47. Other information Research and Development expenditure Expensed to the Consolidated Statement of Profit and Loss, including certain expenditure based on allocations made, aggregate Rs. 1,028.51 crores (2024 : Rs. 953.36 crores).
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