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Notes to Accounts of Tata Investment Corporation Ltd.

Mar 31, 2023

The Company has elected an irrevocable option to designate its investments in equity instruments through FVOCI, as the said investments are not held for trading and company continues to invest for long term and remain invested in leaders in sectors, which it believes to have potential to remain accretive over the long term.

Of the total dividend recognised during the year from investment in equity shares designated at FVOCI, '' 564.47 lacs (Previous year 338.49 lacs) is relating to investment derecognised during the year and '' 18,007.96 lacs (Previous year '' 11,016.73 lac) pertains to investments held at the end of reporting period.

During the year, total cumulative gains (net of taxes) of '' 36,221.19 lacs (Previous year 43,060.81 lacs) on investment in equity shares designated at FVOCI have been transferred to retained earnings on derecognition of related investments after adjusting for tax effect thereon amounting to '' 3,530.87 lacs (Previous Year - '' 2,767.33 lacs). The fair value of such investments on the date of derecognition is '' 81,497.37 lacs (Previous year '' 68,733.21 lacs).

During the current or previous reporting periods, the Company has not reclassified any investments since its initial classification.

Shares lent as at March 31, 2023, under Stock Lending and Borrowing Scheme of the Securities and Exchange Board of India amount to '' Nil (previous year '' 1,795.53 lacs).

The other disclosure regarding fair value and risk arising from financial instruments are explained in note No.17.

Disclosure of amounts due to Micro, Small and Medium enterprises is based on information available with the Company regarding the status of the suppliers as defined under ''The Micro, Small and Medium Enterprises Development Act, 2006'' (MSMED). This has been relied upon by the auditors.

Trade Payables include amount payable to the Holding Company, Tata Sons Private Limited, '' 186.87 lacs (Previous year '' 177.59 lacs).

Trade payables are recognised at their original invoice amounts which represents their fair values on initial recognition. Trade payables are considered to be of short duration and are not discounted and the carrying values are assumed to approximate their fair values.

(b) 34,664,663 Ordinary shares - 68.51% (Previous year 34,664,663 Ordinary shares - 68.51%) of '' 10/- each are held by the Holding Company, Tata Sons Private Limited. No other shareholder holds more than 5% of the Ordinary share capital of the Company. 805,843 Ordinary shares (Previous Year 805,843) are held by a Subsidiary of the Holding Company and 1,642,111 Ordinary shares (Previous year 847,695 ) are held by Associates of the Holding Company.

(e) The Company has only one class of Ordinary shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

(f) The Company is an Investment company, the objective of the Company is to invest in long term investments, and distributing the profits of Company by way of dividends in a way that shareholders can participate equitably in the Company''s growth, while maintaining the financial foundation of the Company and ensure sustainable growth. Accordingly, the Company has framed various policies such as investment policy, dividend distribution policy which lays down the framework of company''s capital management.

(g) The Board of Directors of the Company, at its meeting held on November 16, 2018 had approved a proposal to buyback upto 4,500,000 equity shares of the Company for an aggregate amount not exceeding '' 45,000 lacs being 8.17% of the total paid up equity share capital at '' 1000/-per equity share, which was approved by the shareholders by means of a special resolution through a postal ballot.

A Letter of Offer was made to all eligible shareholders. The Company bought back 4,500,000 equity shares out of the shares that were tendered by eligible shareholders and extinguished the equity shares bought on February 22, 2019.

Capital Redemption Reserve was created to the extent of Share Capital extinguished '' 450 lacs. Total amount of '' 45,000 lacs from securities premium was utilised towards the buy-back and '' 346.61 lacs utilised from retained earning towards transaction costs of buy-back.

Nature and purpose of reserves:

Capital Reserve

The Company recognises profit and loss on purchase, sale, issue or cancellation of its own equity instruments to capital reserve.

Capital redemption Reserve

Whenever there is a buy-back or redemption of share capital the nominal value of the capital is transferred to a reserve called Capital Redemption Reserve so as to retain the capital intact.

Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

General Reserve

The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General reserve will not be reclassified subsequently to the statement of profit and loss.

Statutory Reserve

Statutory Reserve represents the reserve created pursuant to the Reserve Bank of India Act, 1934 (the "RBI Actâ) and related regulations applicable to those companies. Under the RBI Act, a non-banking finance company is required to transfer an amount not less than 20% of its net profit to a reserve fund before declaring any dividend. Appropriation from this reserve fund is permitted only for the purposes specified by the RBI.

Impairment Reserve

Impairment Reserve represents the reserve created pursuant to the per RBI circular dated March 13, 2020 on ''Implementation of Indian Accounting Standards''. Under the circular, where the impairment allowance under Ind AS 109 is lower than the provisioning required as per prudential norms on Income Recognition, Asset Classification and Provisioning (including standard asset provisioning) the difference should be appropriated from the net profit to a separate ''Impairment Reserve''. Withdrawals from this reserve is allowed only after obtaining permission from the RBI. Though the Company is generally not in the activity of lending loans and advances, however, the provision for standard asset outstanding as on April 1,2019 has been reversed and an amount equivalent to 0.40% of standard assets has been transferred to ''Impairment Reserve'' as on March 31,2020 out of abundant caution.

11.	Contingent Liabilities & Commitments		('' in lacs)
		Year Ended	Year Ended
		31.03.2023	31.03.2022
	Contingent liabilities
(a)	Income Tax matters decided in the Company''s favour by appellate authorities, where the department is in further appeal...........................................................................................................................................................................................	11.31	11.31
	Commitments
(a)	Uncalled liability on investments in Venture Capital Funds....................................................................................................	1,503.50	2,575.00
(b)	Investments partly paid - Equity Shares of '' 5 each in Bharti Airtel Ltd. ('' 1.25 per share paid up)........................	135.99	135.99

12. Dividend of '' 48 per share (previous year '' 55 per share) amounting to '' 24,285.74 lacs (previous year '' 27,827.41 lacs) is proposed on ordinary shares. The recommended dividend will be accounted for when approved by the shareholders.

13. Disclosures for leasing arrangements

(a) The Company has taken its office premises on operating lease for a period of 3 years beginning October 1,2021

14. Employee Benefits(a) Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund and Superannuation Fund which is a defined contribution plan. The Company has no obligations other than these two funds to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund and Superannuation Fund for the year are summarised below.

Inherent risk : The plan is of a final salary defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, there is a risk for the Company that any adverse salary growth or demographic experience or inadequate returns on underlying plan assets can result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature the plan is not subject to any longevity risks.

Investment Risk and Asset-Liability Risk : The money contributed by the Company to the fund to finance the liabilities of the plan has to be invested. The trustees of the plan are required to invest the funds as per the prescribed pattern of investments laid out in the income tax rules for such approved plans. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset-liability matching strategy to manage risk actively.

During the year, there were no plan amendments, curtailments and settlements.

(II) Post retirement medical benefits

Under this unfunded scheme, employees of the Company receive medical benefits subject to certain limits on amounts of benefits, periods after retirement and types of benefits, depending on their grade and location at the time of retirement. Employees separated from the Company under an early separation scheme, on medical grounds or due to permanent disablement are also covered under the scheme. The Company accounts for the liability for post-retirement medical scheme based on a year end actuarial valuation.

Inherent risk : The plan is of a defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, there is a risk for the Company that any adverse increase in healthcare costs or demographic experience can result in an increase in cost of providing these benefits to employees in future. The benefits are also paid during the lifetime of the beneficiaries and the plan carries the longevity risks.

During the year, there were no plan amendments, curtailments and settlements.

(iii) Other Long Term Benefits

Other Long Term Benefits include compensated absences, sick leave, long term service benefit and pension. The liability towards other long term benefits is determined by independent actuary at every balance sheet date.

(b) Measurement of fair values

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level

1 to Level 3, as described below:

Level I: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level II: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level III: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

(i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments

(ii) Financial assets and liabilities are stated at carrying value which approximates their fair value.

(iii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range

(iv) The fair value of the financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

(v) There have been no transfers between Level 1 and Level 2 for the years ended March 31,2023 and March 31,2022.

During the current year, the Company has entered into covered call / put option transactions on their existing portfolio. There are no open contracts as at balance sheet date. Credit risk arising from derivative financial instruments is, at any time, is limited to those with positive fair values, as recorded on the balance sheet.

(d) Financial risk management

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk

â¢ Liquidity risk; and

â¢ Market risk

The Company has a risk management framework which not only covers the market risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks.

The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of interest rate fluctuations on the Company''s business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

Credit Risk:

Credit risk is the risk of financial loss to the company if a counter-party fails to meet its contractual obligations.

Trade receivables

Credit risk with respect to trade receivables is limited, since the trade receivables amount is immaterial.

Cash and cash equivalents.

The Company holds cash and cash equivalents of '' 388.83 lacs at 31 March 2023 (31 March 2022: '' 499.85 lacs). The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

Liquidity Risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities based on undiscounted contractual payments for:

- all non derivative financial liabilities

- Derivative financial instruments for which the contractual maturities are essential for understanding the timing of the cash flows.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as equity price, interest rates etc.) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. The Company is exposed to market risk primarily related to the market value of its investments.

Interest rate risk :

Interest rate risk arises from effects of fluctuation in prevailing levels of market interest rates on the fair value of Bonds / Debentures/ G sec. Exposure to interest rate risk :

Since the Company does not have any financial assets or financial liabilities bearing floating interest rates, any change in interest rates at the reporting date would not have any significant impact on the standalone financial statements of the Company.

Currency risk:

Currently Company does not have transaction in foreign currencies and hence the Company is not exposed to currency risk.

Price risk:

(a) Exposure

The Company is exposed to equity price risk arising from investments held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss.

To manage its price risk arising from investment in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

The majority of the company''s equity investments are listed on the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE) in India.

(b) Sensitivity analysis - Equity price risk

The table below summaries the impact of increases/decreases of the index on the Company''s equity and profit for the year. The analysis is based on the assumption that the equity/index had increased by 2% or decreased by 2% with all other variables held constant, and that all the Company''s investments in equity instruments moved in line with the index.

20. Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company has adequate cash and bank balances. The company monitors its capital by a careful scrutiny of the cash and bank balances, and a regular assessment of any debt requirements. In the absence of any debt, the maintenance of debt equity ratio etc. may not be of any relevance to the Company.

21. The Company has been assigned a rating of ''CRISIL AAA/Stable'' on '' 1,000 lacs Non-Convertible Debentures programme.

22. Following are the additional disclosures required as per Schedule III to the Companies Act, 2013 vide Notification dated March 24, 2021;

a. Details of Benami Property held:

There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

b. Wilful Defaulter:

The Company has not been declared as Wilful Defaulter by any Bank or Financial Institution or other Lender.

c. Relationship with Struck off Companies :

During the year, the Company does not have any transactions with the companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.

d. Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

e. Utilisation of Borrowed funds and share premium:

During the financial year ended 31.03.2023, other than the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.

(i) No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

f. Undisclosed Income:

The Company does not have any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also, there are nil previously unrecorded income and related assets.

g. Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

h. Capital work in progress (CWIP) and Intangible asset:

The Company does not have any CWIP and Intangible asset under development.

i. The Company has not revalued its Property, Plant and Equipment during the year as well as in previous year

(f) Sectoral Exposures

The Company does not have any exposures (including off balance sheet items), in the nature of loans as at March 31,2023 and March 31,2022.

(g) Intra group Exposures

The Company has investment in group companies as disclosed in Note 7.5 of the notes to financial statements as at March 31, 2023 and March 31, 2022.

(h) Unhedged foreign currency exposure

The Company does not have any unhedged foreign currency exposures as at March 31,2023 and March 31,2022.

(i) Disclosure of complaints

The Company does not have any customer interface and thus there are no complaints received by the NBFCs from customers and from the Offices of Ombudsman during the year ended March 31,2023 and March 31,2022.

(j) Corporate Governance

For report on Corporate Governance refer to page 80 of the Annual Report.

(k) Details of penalties and strictures

There are no penalties or stricture imposed on the Company by the Reserve Bank or any other statutory authority.

(l) Related Party Disclosure

For related party disclosures refer to Note 15 of the notes to standalone financial statements.

Qualitative Details

The Company''s liquidity risk management policy focuses on ensuring maintenance of sufficient liquidity including a cushion of unencumbered, high quality liquid assets to withstand a range of stress events, including those involving the loss or impairment of both unsecured and secured funding sources. Key elements of the liquidity risk management framework are governance of Liquidity Risk Management, liquidity risk tolerance, Off-balance Sheet Exposures and Contingent Liabilities, collateral position management, intra group transfers.

As compared to previous year, the Company does not have any outstanding derivative contract as at March 31,2023.

The Company''s HQLA mainly comprise of current account balances with scheduled commercial banks, investment in government securities and highly liquid investment in mutual funds subject to minimal risk. The Company does not have any borrowings or any foreign currency exposure.

25. Events after Reporting date

There have been no events after the reporting date that require disclosure in these standalone financial statements.

26. Previous year''s figures have been regrouped, wherever necessary, to correspond with current year''s classification.

Mar 31, 2022

Of the total dividend recognised during the year from investment in equity shares designated at FVOCI, '' 338.49 lacs (Previous year '' 159.12 lacs) is relating to investment derecognised during the year and '' 11,016.73 lacs (Previous year '' 8,209.96 lac) pertains to investments held at the end of reporting period.

During the year, total cumulative gains (net of taxes) of '' 43,060.81 lacs (Previous year '' 20,971.92 lacs) on investment in equity shares designated at FVOCI have been transferred to retained earnings on derecognition of related investments after adjusting for tax effect thereon. The fair value of such investments on the date of derognition is '' 68,733.21 lacs (Previous year '' 56,927.92 lacs).

During the current or previous reporting periods the Company has not reclassified any investments since its initial classification.

Shares lent under Stock Lending and Borrowing Scheme of the Securities and Exchange Board of India amount to '' 1,795.53 lacs (previous year '' 3,432.45 lacs).

The other disclosure regarding fair value and risk arising from financial instruments are explained in note No.16.

Trade Payables include amount payable to the Holding Company, Tata Sons Private Ltd., '' 177.59 lacs (Previous year '' 86.89 lacs).

(b) 34,664,663 Ordinary shares - 68.51% (Previous year 34,664,663 Ordinary shares - 68.51%) of '' 10/- each are held by the Holding Company, Tata Sons Private Limited. No other shareholder holds more than 5% of the Ordinary share capital of the Company. 805,843 Ordinary shares (Previous Year 805,843) are held by a Subsidiary of the Holding Company and 8,47,695 Ordinary shares (Previous year 8,47,695 ) are held by Associates of the Holding Company.

(d) Par value per share is '' 10 each

(g) The Board of Directors of the Company, at its meeting held on November 16, 2018 had approved a proposal to buyback upto 45,00,000 equity shares of the Company for an aggregate amount not exceeding '' 45,000 lacs being 8.17% of the total paid up equity share capital at '' 1000/-per equity share, which was approved by the shareholders by means of a special resolution through a postal ballot.

A Letter of Offer was made to all eligible shareholders. The Company bought back 45,00,000 equity shares out of the shares that were tendered by eligible shareholders and extinguished the equity shares bought on February 22, 2019.

Nature and purpose of reserves:

Capital Reserve

The Company recognises profit and loss on purchase, sale, issue or cancellation of the its own equity instruments to capital reserve.

Capital redemption Reserve

Whenever there is a buy-back or redemption of share capital the nominal value of the capital is transferred to a reserve called Capital Redemption Reserve so as to retain the capital intact.

Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013.

General Reserve

Statutory Reserve

Impairment Reserve

Impairment Reserve represents the reserve created pursuant to the per RBI circular dated March 13, 2020 on ''Implementation of Indian Accounting Standards''. Under the circular, where the impairment allowance under IND AS 109 is lower than the provisioning required as per prudential norms on Income Recognition, Asset Classification and Provisioning (including standard asset provisioning) the difference should be appropriated from the net profit to a separate ''Impairment Reserve''. Withdrawals from this reserve is allowed only after obtaining permission from the RBI. Though the Company is generally not in the activity of lending loans and advances, however, the provision for standard asset outstanding as on April 1,2019 has been reversed and an amount equivalent to 0.40% of standard assets has been transferred to ''Impairment Reserve'' as on March 31,2020 out of abundant caution.

10 Segment Information:

As the Company has no activities other than those of an investment company, the segment reporting under Indian Accounting Standard Ind AS 108 - ''Operating Segments'' is not applicable. The Company does not have any reportable geographical segment.

14 Employee Benefits(a) Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund, Family Pension Fund and Superannuation Fund which is a defined contribution plan. The Company has no obligations other than these three funds to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The amount recognised as an expense towards contribution to Provident Fund, Family Pension Fund and Superannuation Fund for the year are summarised below.

During the year, there were no plan amendments, curtailments and settlements.

(II) Post retirement medical benefits

Under this unfunded scheme, employees of the Company receive medical benefits subject to certain limits on amounts of benefits, periods after retirement and types of benefits, depending on their grade and location at the time of retirement.Employees separated from the Company under an early separation scheme, on medical grounds or due to permanent disablement are also covered under the scheme. The Company accounts for the liability for post-retirement medical scheme based on an year end actuarial valuation.

During the year, there were no plan amendments, curtailments and settlements.

(iii) Other Long Term Benefits

(b) Measurement of fair values

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level

1 to Level 3, as described below:

Level I: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level II: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level III: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

(ii) Financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.

(v) There have been no transfers between Level 1 and Level 2 for the years ended March 31,2022 and March 31,2021.

During the current year, the Company has entered into covered call / put option transactions on their existing portfolio. Credit risk arising from derivative financial instruments is, at any time, is limited to those with positive fair values, as recorded on the balance sheet.

(d) Financial risk management

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk

â¢ Liquidity risk; and

â¢ Market risk

The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of interest rate fluctuations on the Company''s business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

Credit Risk:

Credit risk is the risk of financial loss to the company if a counter-party fails to meet its contractual obligations.

Trade receivables

Credit risk with respect to trade receivables is limited, since the trade receivables amount is immaterial.

Cash and cash equivalents

The Company holds cash and cash equivalents of '' 499.85 lacs at 31 March 2022 (31 March 2021: '' 422.70 lacs. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

Liquidity Risk:

The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

- all non derivative financial liabilities

- Derivative financial instruments for which the contractual maturities are essential for understanding the timing of the cash flows.

Market risk

Interest rate risk :

Interest rate risk arises from effects of fluctuation in prevailing levels of market interest rates on the fair value of Bonds / Debentures.

Exposure to interest rate risk :

Currency risk:

Currently Company does not have transaction in foreign currencies and hence the Company is not exposed to currency risk.

Price risk:

(a) Exposure

The Company is exposed to equity price risk arising from investments held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss.

The majority of the company''s equity investments are listed on the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE) in India."

18.1 Capital to risk-weighted assets ratio (CRAR) - Stock of High Quality Liquid Assets divided by Expected cash outflows for 30 days & Liquidity Coverage Ratio are not appliable since the Company is a Type 1 NBFC pursuant to circular dt. 04.11.2019 RBI/2019-20/88 DOR.NBFC (PD) CC. No.102/03.10.001/ 2019-20.

19 Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

20 The Company has been assigned a rating of '' CRISIL AAA/Stable'' on '' 100mn Non-Convertible Debentures programme.

21 Following are the additional disclosures required as per Schedule III to the Companies Act, 2013 vide Notification dated March 24, 2021;

a. Details of Benami Property held:

There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

b. Willful Defaulter:

The Company has not been declared as Willful Defaulter by any Bank or Financial Institution or other Lender.

c. Relationship with Struck off Companies :

During the year, the Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

d. Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

e. Utilisation of Borrowed funds and share premium:

During the financial year ended 31st March 2022, other than the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.

f. Undisclosed Income:

g. Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

h. Capital work in progress (CWIP) and Intangible asset:

The Company does not have any CWIP and Intangible asset under development.

i. The Company has not revalued its Property, Plant and Equipment during the year as well as in previous year

Mar 31, 2018

1.1.1 None of the parties grouped under Trade Payables have declared themselves under the Micro, Small and Medium Enterprises Development Act, 2006.

The above information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

1.1.2 Trade Payables include amount payable to the holding company, Tata Sons Ltd., Rs.79.16 lacs (Previous year Rs.75.18 lacs).

1.2.1.1 All the above investments are fully paid, except where otherwise indicated.

1.2.1.2 Includes Rs.4,672.54 lacs (previous year Rs.2,641.10 lacs) towards shares lent under Stock Lending and Borrowing Scheme of the Securities and Exchange Board of India.

1.3 Deferred Tax Assets (net)

Deferred Tax Assets of Rs.679.22 lacs (previous year Rs.488.55 lacs) primarily comprising of difference in carrying value of investment have not been recognised, as there is no reasonable certainty for setting off the same, considering the present tax status of the Company.

1.4.1 Security deposits includes a rental deposits of Rs.100.00 lacs with Ewart Investments Ltd. (Previous year Rs.100.00 lacs), which is a related party.

1.5.1 Long term deposit is held with NSCCL and ICCL as collateral against margin money and include interest accrued but not due on deposit Rs.31.91 lacs (Previous year Rs. Nil).

1.6.1 Balance with banks on current accounts include

i) amount kept in Unpaid dividend accounts Rs.87.62 lacs (Previous year Rs.93.91 lacs)

1.6.2 Other bank balances

i) deposit with NSCCL and ICCL as collateral against margin money.

ii) bank deposits with more than 12 months maturity Rs. Nil (Previous year Rs.1,000.00 lacs).

2.1.1 Investments written off includes a sum of Rs.666.21 lacs (Previous Year Rs.1,269.96 lacs) being the write off of its residual investment in Tata Teleservices Ltd. to the Statement of Profit and Loss for the year ended 31st March, 2018 based on the developments in the company during the year.

2.2 There were no exceptional/extraordinary items and discontinuing operations for the years ended 31st March, 2018 and 31st March, 2017.

3. In accordance with the High Court Orders dated 27th September, 2002, 30th January, 2009 and 25th September, 2009 and the accounting practice adopted earlier, provision for diminution in the value of investments (Long Term) amounting to Rs.264.87 lacs (Previous year Rs.626.46 lacs ) has been credited to the Securities Premium Account, being write back of provision for diminution in value of certain investments no longer required, which had been debited to such account in earlier years instead of the Statement of Profit and Loss as prescribed under Accounting Standard (AS) 13 on âAccounting for Investmentsâ.

4. Dividend of Rs.20 per share [including Special Dividend of Rs.2 per share] (previous year Rs.18 per share) amounting to Rs.13,284.03 lacs (previous year Rs. 11,936.05 lacs) including tax thereon Rs.2,264.97 lacs (previous year Rs.2,018.90 lacs) is proposed on ordinary shares. The recommended dividend will be accounted for when approved by the shareholders.

5. As the Company has no activities other than those of an investment company, the segment reporting under Accounting Standard 17 -âSegments Reportingâ is not applicable. The Company does not have any reportable geographical segment.

6. Related Parties Disclosures

a) List of Related Parties and Relationship

Promoter and Holding Company

Tata Sons Ltd.

Subsidiary

Simto Investment Company Ltd.

Associates

Tata Asset Management Ltd.

Tata Trustee Company Ltd.

Amalgamated Plantations Pvt. Ltd.

Key Management Personnel (KMP)

Mr. A. N. Dalal (Executive Director)

Other Subsidiaries of Promoter :- (with whom the Company has transactions)

1. Ewart Investments Ltd. 2. Tata Consulting Engineers Ltd.

3. Infiniti Retail Ltd. 4. Tata Teleservices (Maharashtra) Ltd. (w.e.f. 02.02.2017)

5. Tata Autocomp Systems Ltd. 6. Tata Consultancy Services Ltd.

7. Tata International Ltd. 8. Tata Securities Ltd.

Notes :

a) Gratuity is administered through a trust fund recognised by the Income Tax Act, 1961.

b) Future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other retirement factors.

c) The expected rate of return on plan assets is based on expectation of the average long term rate of return on investments of the Fund during the estimated terms of the obligations.

d) The best estimate of the expected contribution for the next year amounts to Rs.20.00 lacs (Previous Year Rs.20.00 lacs).

e) The above information is certified by the actuary and relied upon by statutory auditors.

f) The discount rate is based on prevailing market yield of Indian government securities as at the valuation date for the estimated terms of the obligations.

g) The Company has recognised the following amounts in the Statement of Profit and Loss (Details in note 3.3)

7. The following additional information, to the extent applicable, (other than what is already disclosed elsewhere) is disclosed in terms of RBI Master Direction DNBR DD. 008/03.10.119/2016 -17 dated September 01, 2016.

8. Disclosure on Specified Bank Notes (SBN)

Disclosure on details of SBN held and transacted during the period from 8th November, 2016 to 30th December, 2016 vide Circular G.S.R. 308(E), dated 30th March, 2017.

Explanation : For the purposes of this clause, the term Specified Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

9. The Company has been assigned a rating of â CRISIL AAA/Stableâ on Rs. 100 mn Non-Convertible Debentures programme.

10. The financial statements of the Company for the year ended March 31, 2017 were audited by another firm of Chartered Accountants vide their unqualified opinion dated May 24, 2017 and have been relied upon in respect of the figures for the previous year reported herewith.

11. Previous yearâs figures have been regrouped/reclassified, wherever necessary, to correspond with current yearâs classification / disclosure.

Mar 31, 2017

1. The Board of Directors at its meeting held on 24th May, 2017, has recommended a Final dividend of Rs. 18/- (180%) per Ordinary share of Rs. 10.00 each. In terms of revised Accounting Standard (AS) 4 ''Contingencies and Events occurring after Balance Sheet date'' as notified by the Ministry of Corporate Affairs through amendment to Companies (Accounting Standard) Amendment Rules, 2016, the Company has not appropriated proposed dividend (including tax) aggregating Rs. 12,599.17 lacs from the Surplus as per Statement of Profit and Loss for the year ended 31st March, 2017. The recommended dividend will be accounted for when approved by the shareholders.

During the previous year Interim Dividend of Rs. 17 /- (170%) per Ordinary share amounting to Rs. 11,272.94 lacs including tax thereon Rs. 1,906.74 lacs is paid on Ordinary shares.

2. Related Parties Disclosures

3. List of Related Parties and Relationship

Promoter and Holding Company

Tata Sons Ltd.

Subsidiary

Simto Investment Company Ltd.

Associates

Tata Asset Management Ltd.

Tata Trustee Company Ltd.

Amalgamated Plantations Pvt. Ltd.

Key Management Personnel (KMP)

Mr. A. N. Dalal (Executive Director)

Other Subsidiaries of Promoter :- (with whom the Company has transactions)

4. Ewart Investments Ltd. 5. Tata Consulting Engineers Ltd.

6. Infiniti Retail Ltd. 7. Tata Teleservices (Maharashtra) Ltd. (w.e.f. 02.02.2017)

8. Tata Autocomp Systems Ltd. 9. Tata Consultancy Services Ltd.

10. Tata International Ltd. 11. Tata Housing Development Company Ltd.

12. Tata Securities Ltd.

Mar 31, 2016

1. The CSR obligation as computed by the Company is relied upon by the auditors.

2. The Company has received a show cause notice from the Service Tax Authorities with respect to levy of service tax of Rs. 123.00 lacs (plus interest and penalty) on income earned from stock lending activities. Considering the facts involved in the matter, the legal position and the memorandum obtained from the consultants, the Company believes that appropriate defence and remedies are available to the company in this matter. However, out of abundant caution and to mitigate interest burden, the Company has deposited a sum of Rs. 68.00 lacs (plus interest) under protest with the concerned authorities and has also made a provision of equal amount in the books.

Notes :

a) Gratuity is administered through a trust fund recognised by the Income Tax Act, 1961.

b) Future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other retirement factors.

c) The expected rate of return on plan assets is based on expectation of the average long term rate of return on investments of the Fund during the estimated terms of the obligations.

d) The best estimate of the expected contribution for the next year amounts to Rs. 10.00 lacs (Previous Year Rs. 10.00 lacs).

e) The above information is certified by the actuary and relied upon by statutory auditors.

f) The discount rate is based on prevailing market yield of Indian government securities as at the valuation date for the estimated terms of the obligations.

g) The Company has recognised the following amounts in the Statement of profit and Loss (Details in note 3.3)

3. The Company has been assigned a rating of '' CRISIL AAA/Stable''on Rs. 10 crores Non-Convertible Debentures programme.

4. Previous year''s figures have been regrouped/reclassified, wherever necessary, to correspond with current year''s classification / disclosure.

Mar 31, 2015

(Rs. in lacs) Year ended Year ended 31.3.2015 31.3.2014

1. (i) Contingent Liabilities :

Income Tax matters decided in the Company''s favour by appellate authorities, where the department is in further appeal. 1131 1131

(ii) Commitments :

Uncalled liability on investments in Venture Capital Funds. 246.00 530.30

Notes :

a) Gratuity is administered through a trust fund recognised by the Income Tax Act, 1961.

b) Future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other retirement factors.

c) The expected rate of return on plan assets is based on expectation of the average long term rate of return on investments of the Fund during the estimated terms of the obligations.

d) The best estimate of the expected contribution for the next year amounts to Rs.10.00 lacs (Previous Year Rs.6.00 lacs).

e) The above information is certified by the actuary and relied upon by statutory auditors.

f) The discount rate is based on prevailing market yield of Indian government securities as at the valuation date for the estimated terms of the obligations.

2. The Company has been assigned a rating of '' CRISIL AAA / Stable'' on Rs.10 crores Non-Convertible Debentures programme.

3. Previous year''s figures have been regrouped / reclassified, wherever necessary, to correspond with current year''s classification / disclosure.

Mar 31, 2013

1.1 Long Term Provisions

Provision for pension and employee benefits

1.2 Trade Payables

None of the parties grouped under Trade Payables have declared themselves under the Micro, Small and Medium Enterprises Development Act, 2006.

The above information has been determined to the extent such parties have been identitied on the basis of information available with the Company. This has been relied upon by the auditors.

1.2.1 Trade Payables include amount payable to the holding company, Tata Sons Ltd., Rs.196.66 lacs (Previous Year Rs.195.56 lacs).

1.3.1 Balance with banks on current accounts include

i) amount kept in unpaid dividend accounts - Rs.95.25 lacs (Previous Year Rs.98.45 lacs).

ii) amount kept in an escrow account towards matured deposits and interest thereon Rs.0.72 lacs (Previous Year Rs.1.47 lacs).

iii) amount which is subject to exchange control restrictions in Sri Lanka Rs.0.91 lacs (Previous Year Rs.1.25 lacs).

1.3.2 Balances with banks on deposit account includes

i) amount which is subject to exchange control restrictions in Sri Lanka Rs.27.52 lacs (Previous Year Rs.25.51 lacs).

ii) interest accrued but not due on deposit - Rs.0.41 lacs (Previous Year Rs.0.30 lacs).

1.3.3 Other bank balances on deposit accounts include interest accrued but not due on deposits - Rs.40.72 lacs (Previous Year Rs.865.63 lacs). (Rs. in lacs)

Year ended Year ended 31.3.2013 31.3.2012

3. i) Contingent Liabilities -

Income Tax matters decided in the Company''s favour by appellate authorities, where the department is in further appeal 55.75 11.31

ii) Commitments -

a) uncalled liability on investments in Venture Capital Funds 758.25 861.50

b) Pro-rata share of expenses for the proposed offer of equity shares of an investee company through public issue - 50.00

4. Dividend of Rs. 16 per share (previous year Rs. 21 per share) amounting to Rs. 10,313.40 lacs (previous year Rs.13,446.96 lacs) including tax thereon Rs. 1,498.15 lacs (previous year Rs.1,876.95 lacs) is proposed and provided on ordinary shares.

5. Foreign exchange currency exposures not covered with regard to the (non-repatriable) deposit placed with Hatton National Bank, Colombo, of Sri Lankan Rs.64.25 lacs (Previous Year Sri Lankan Rs.64.25 lacs) (Equivalent Indian Rs.27.52 lacs; Previous Year Equivalent Indian Rs.25.51 lacs).

6. As the Company has no activities other than those of an investment company, the segment reporting under Accounting Standard 17 - "Segment Reporting" is not applicable. The Company does not have any reportable geographical segment.

7. Related Parties Disclosures

a) List of Related Parties and Relationship

Promoter and Holding Company

Tata Sons Ltd.

Subsidiary

Simto Investment Company Ltd. (w.e.f. 31.8.2012)

Associates

Tata Asset Management Ltd.

Tata Trustee Company Ltd.

Amalgamated Plantations Pvt. Ltd.

Key Management Personnel (KMP)

Mr. M. J. Kotwal (upto 27.5.2012)

Mr. A. N. Dalal

8. During the year the Company had acquired 95.57% of the equity share holding of Simto Investment Company Ltd. (Simto) thereby making Simto a subsidiary of the Company w.e.f. 31st August, 2012.

9. Previous year''s figures have been regrouped/reclassified, wherever necessary, to correspond with current year''s classification / disclosure.

Mar 31, 2012

1. In accordance with the High Court Orders dated 27th September, 2002, 30th January, 2009 and 25th September, 2009 and the accounting practice adopted earlier, provision for diminution in the value of investments (Long Term and Current) amounting to Rs.1993.07 lacs (Previous Year Rs.Nil) has been adjusted to the securities premium account instead of the statement of profit and loss as prescribed under Accounting Standard (AS) 13 on 'Accounting for Investments'.

Further, an amount of Rs.Nil (Previous Year Rs.131.94 lacs) has been credited to the securities premium account being write back of provision for diminution in value of certain investments no longer required, which had been debited to such account in earlier years.

2. (i) Contingent Liabilities -

a) Income Tax matters decided in the Company's favour by appellate authorities, where the department is in further appeal 11.31 37.62

b) Claims against the Company not acknowledged as debts in respect of income tax matters - 558.20

(ii) Commitments -

a) Uncalled liability on investments in Venture Capital Funds 861.50 950.00

b) Pro-rata share of expenses for the proposed offer of equity shares of an investee company through public issue 50.00 -

3. Dividend of Rs. 21.00 per share amounting to Rs.13446.96 lacs (including tax thereon Rs.1876.95 lacs) is proposed and provided on ordinary shares

4. Foreign exchange currency exposures not covered with regard to the (non-reparable) deposit placed with Hatton National Bank, Colombo, of Sri Lankan Rs.64.25 lacs; Previous Year Sri Lankan Rs.64.25 lacs (Equivalent Indian Rs.25.51 lacs; Previous Year Equivalent Indian Rs.26.03 lacs).

5. As the Company has no activities other than those of an investment company, the segment reporting under Accounting Standard 17 - "Segment Reporting" is not applicable. The Company does not have any reportable geographical segment.

Notes :

a) Gratuity is administered through a trust fund recognised by the Income Tax Act, 1961.

b) Future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other retirement factors.

c) The expected rate of return on plan assets is based on expectation of the average long term rate of return on investments of the Fund during the estimated term of the obligations.

d) The best estimate of the expected contribution for the next year amounts to Rs.9.00 lacs (Previous Year Rs. 10.00 lacs).

e) Experience adjustments for the year ended 31st March, 2010, on plan liabilities is Rs. (-) 6.26 lacs and on the plan assets is Rs. Nil.

f) The above information is certified by the actuary and relied upon by statutory auditors.

6. The Revised Schedule VI has become effective for financial years commencing on or after 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. However, it does not impact recognition and measurement principles followed for preparation of the financial statements. Previous year's figures have been regrouped/reclassified, wherever necessary, to correspond with current year's classification / disclosure.

Mar 31, 2010

1. In accordance with the High Court Orders dated 27th September, 2002, 30th January, 2009 and 25th September, 2009 and the Accounting Practice adopted earlier, provision for diminution in the value of investments amounting to Rs.Nil (Previous Year Rs.2185.68 lacs) has been debited to the securities premium account instead of Profit and Loss Account as prescribed under Accounting Standard (AS) 13 on Accounting for Investments.

Further, an amount of Rs.1541.57 lacs (Previous Year Rs.Nil) has been credited to the securities premium account being write back of provision for diminution in value of certain investments no longer required, which had been debited to such account in earlier years.

Previous Year Rupees Rupees (in lacs) (in lacs)

2. (i) Contingent Liabilities -

a) Uncalled liability on partly paid shares........................... 0.13 0.13

b) Income Tax matters decided in the Companys favour by appellate authorities, where the department is in further appeal................................ 37.62 9.49

c) Claims against the Company not acknowledged as debts in respect of income-tax matters... 558.20 --

(ii) Commitments -

Uncalled liability on investments in Venture Capital Funds................... 350.00 500.00

3. Foreign exchange currency exposures not covered with regard to the (non-repatriable) deposit placed with Hatton National Bank, Colombo, of Sri Lankan Rs.64.25 lacs; Previous Year Sri Lankan Rs.64.25 lacs (Equivalent Indian Rs.25.20-lacs; Previous Year Equivalent Indian Rs.28.08 lacs).

4. As the Company has no activities other than those of an investment company, the segment reporting under Accounting Standard 17 - "Segment Reporting" is not appiicable.The Company does not have any reportable geographical segment.

5. Related Parties Disclosures

a) List of Related Parties and Relationship Promoter and holding company

Tata Sons Ltd.

Associates

Tata Asset Management Ltd.

Tata Trustee Company Pvt. Ltd.

Amalgamated Plantations Pvt. Ltd. (w.e.f. 29.4.2009}

Landmark Ltd. (from 2.5.2008 till 263.2009)

Key Management Person (KMP)

Mr. M. J. Kotwal

Mr. A.N. Dalai (w.e.f. 1.1.2010)

Other subsidiaries of Promoter:- (with whom the Company has transactions)

1. Ewart Investments Limited 2. Infiniti Retail Limited

3. Tate Consultancy Services Limited 4. Tata Realty and Infrastructure Limited

5. Tata Securities Limited 6. Tata Sky Limited

7. Tata Teleservices (Maharashtra) Limited 8. Tata Housing Development Co. Limited

9. Tata Consulting Engineers Limited

6. Deferred Tax Assets have not been recognised, as there is no reasonable certainty for setting off the same, considering the present tax status of the Company.

7. All Investments disclosed under Schedule E are Trade Investments.

8. Previous years figures have been regrouped wherever necessary.

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