385 FINANCIAL STATEMENTS | Consolidated Accounts – In case of 1 subsidiary, the accounting software used for maintaining its books of account, which have a feature of recording audit trail (edit log) facility, has operated throughout the year except for certain tables relating to financial reporting and masters where the same has been enabled in a phased manner during the year. – In case of 1 subsidiary, one accounting software wherein master level logs were enabled from 02 July 2025, eleven accounting software (including two software migrated during the year) wherein, the audit trail logs were not maintained at database level throughout the year and two accounting software wherein, the limited audit trail logs were enabled from 02 March 2026 to log direct data changes. – In case of 1 subsidiary, the audit trail log was not maintained for direct database changes in respect of two accounting applications for the period April 2025 to February 2026. – For 1 subsidiary, the audit trail was not enabled at the database level to log any direct data changes for one software for the period 01 April 2025 to 07 April 2025 and for logs maintained after 07 April 2025 the earlier values were not retained of direct data changes. – In case of 1 joint venture and its subsidiaries, the accounting software used for maintenance of accounting records, including the accounting software used for Employee Stock Options (ESOP) (for this joint venture and its 1 subsidiary) is operated by third-party software service provider. In the absence of any information on existence of audit trail (edit logs) for any direct changes made at the database level in the ‘Independent Service Auditor’s Assurance Reports on the Description of Controls, their Design and Operating Effectiveness’ (‘Type 2 report’ issued in accordance with SAE 3402, Assurance Reports on Controls at a Service Organization), the respective auditor are unable to comment on whether audit trail feature with respect to the database of the said software was enabled and operated throughout the year. The audit trail of the accounting software used for order life cycle management pertaining to financial years from 2023-2024 to 2024-2025 have not been preserved as per the statutory requirements for record retention. C. With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act: In our opinion and according to the information and explanations given to us and based on the reports of the statutory auditors of such subsidiary companies, associate companies and joint ventures incorporated in India which were not audited by us, the remuneration paid during the current year by the Holding Company and its subsidiary companies, associate companies and joint ventures to its directors is in accordance with the provisions of Section 197 of the Act, where applicable. The remuneration paid to any director by the Holding Company and its subsidiary companies, associate companies and joint ventures is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us. Place: Mumbai Date: 05 May, 2026 For B S R & Co. LLP Chartered Accountants Firm’s Registration No.: 101248W/W-100022 Venkataramanan Vishwanath Partner Membership No.: 113156 ICAI UDIN: 26113156LLGHBN5814 Independent Auditor’s Report to the Members of Mahindra & Mahindra Limited (contd.)
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