Hero Financial STMT

FINANCIAL STATEMENTS
Independent Auditors’ Report
To the Members of Hero MotoCorp Limited

BASIS FOR OPINION
REPORT ON THE AUDIT OF THE We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under section 143(10) of the
STANDALONE FINANCIAL STATEMENTS Act. Our responsibilities under those SAs are further
described in the Auditor’s Responsibilities for the Audit of the
OPINION Standalone Financial Statements section of our report. We
We have audited the standalone financial statements of are independent of the Company in accordance with the Code
Hero MotoCorp Limited (“the Company”), which comprise of Ethics issued by the Institute of Chartered Accountants of
the standalone balance sheet as at March 31, 2022, and India together with the ethical requirements that are relevant
the standalone statement of profit and loss (including other to our audit of the standalone financial statements under the
comprehensive income), the standalone statement of changes provisions of the Act and the Rules thereunder, and we have
in equity and standalone statement of cash flows for the year fulfilled our other ethical responsibilities in accordance with
then ended, and notes to the standalone financial statements, these requirements and the Code of Ethics. We believe that
including a summary of the significant accounting policies the audit evidence obtained by us is sufficient and appropriate
and other explanatory information (together referred to as to provide a basis for our opinion on the Standalone
“standalone financial statements”).
financial statements.
In our opinion and to the best of our information and according

to the explanations given to us, the aforesaid standalone EMPHASIS OF MATTER
financial statements give the information required by the Attention is invited to note 34(c) of the standalone financial
Companies Act, 2013 (“Act”) in the manner so required and statements, relating to the search carried out by the Income
give a true and fair view in conformity with the accounting Tax Department in March 2022 concerning the Company. Since
principles generally accepted in India, of the state of affairs the investigation and related proceedings are pending, there
of the Company as at March 31, 2022, and profit and other is uncertainty as regards impact, if any, of the outcome of the
comprehensive loss, changes in equity and its cash flows for proceedings, which cannot be ascertained at this point of time.
the year ended on that date.
Our opinion is not modified in respect of this matter.
KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
S.
The key audit matter How the matter was addressed in our audit
No.
1. Government Grants In view of the significance of the matter, we applied the following audit procedures
in this area, among others to obtain sufficient appropriate audit evidence:
(Refer note 3.5 and 4 (f) to the standalone financial
statements)
• assessed the appropriateness of the accounting policy for government
grants as per the relevant accounting standard;
The Company obtains various grants from Government
authorities in connection with manufacture and sales of • evaluated the design and implementation of the Company’s key internal
two wheelers. There are certain specific conditions and financial controls over recognition of government grants and tested the
approval requirement attached to the grants. operating effectiveness of such controls on selected transactions;
Management evaluates, at the end of each reporting • inspected/evaluated, on a sample basis, documents relating to the grants
period, whether the Company has complied with the given by the various government authorities and identifying the specific
relevant conditions attached to each grant and whether conditions and approval requirements attached to the respective grants;
there is a reasonable assurance that the grants will be
received, in order to determine the timing and amounts • evaluated the basis of management’s judgement regarding fulfilment of
of grants to be recognized in the financial statements. conditions attached to the grants and reasonable assurance that grants will
be received. This included examining, on a sample basis, the terms of the
We identified the recognition of government grants as underlying documentation, correspondence with the government authorities
a key audit matter because of the significance of the and whether corresponding sales were made in respect of such grants;
amount of grants and due to significant management
judgement involved in assessing whether the conditions • assessed the adequacy and appropriateness of the disclosures made in
attached to grants have been met and whether there is accordance with the relevant accounting standard.
Hero MotoCorp Ltd. | Annual Report 2021-22 1

reasonable assurance that grants will be received.
2
INFORMATION OTHER THAN THE the Company or to cease operations, or has no realistic
STANDALONE FINANCIAL STATEMENTS AND alternative but to do so.
AUDITORS’ REPORT THEREON
The Board of Directors is also responsible for overseeing the
The Company’s management and Board of Directors are Company’s financial reporting process.
responsible for the other information. The other information
comprises the information included in the Company’s annual
report, but does not include the financial statements and our AUDITOR’S RESPONSIBILITIES FOR THE
auditors’ report thereon. AUDIT OF THE STANDALONE
Our opinion on the standalone financial statements does not FINANCIAL STATEMENTS
cover the other information and we do not express any form of Our objectives are to obtain reasonable assurance about
assurance conclusion thereon. whether the standalone financial statements as a whole are
free from material misstatement, whether due to fraud
In connection with our audit of the standalone financial or error, and to issue an auditor’s report that includes our
statements, our responsibility is to read the other information opinion. Reasonable assurance is a high level of assurance,
and, in doing so, consider whether the other information but is not a guarantee that an audit conducted in accordance
is materially inconsistent with the standalone financial with SAs will always detect a material misstatement when
statements or our knowledge obtained in the audit or it exists. Misstatements can arise from fraud or error and
otherwise appears to be materially misstated. If, based on the are considered material if, individually or in the aggregate,
work we have performed, we conclude that there is a material they could reasonably be expected to influence the economic
misstatement of this other information, we are required to decisions of users taken on the basis of these standalone
report that fact. We have nothing to report in this regard. financial statements.
As part of an audit in accordance with SAs, we exercise

MANAGEMENT’S AND BOARD OF DIRECTORS’ professional judgment and maintain professional skepticism
RESPONSIBILITIES FOR THE STANDALONE throughout the audit. We also:
• Identify and assess the risks of material misstatement of
The Company’s Management and Board of Directors are the standalone financial statements, whether due to fraud
responsible for the matters stated in section 134(5) of the Act or error, design and perform audit procedures responsive
with respect to the preparation of these standalone financial to those risks, and obtain audit evidence that is sufficient
statements that give a true and fair view of the state of and appropriate to provide a basis for our opinion. The
affairs, profit/loss and other comprehensive income, changes risk of not detecting a material misstatement resulting
in equity and cash flows of the Company in accordance from fraud is higher than for one resulting from error, as
with the accounting principles generally accepted in India, fraud may involve collusion, forgery, intentional omissions,
including the Indian Accounting Standards (Ind AS) specified misrepresentations, or the override of internal control.
under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance • Obtain an understanding of internal control relevant to
with the provisions of the Act for safeguarding of the assets the audit in order to design audit procedures that are
of the Company and for preventing and detecting frauds and appropriate in the circumstances. Under section 143(3)(i) of
other irregularities; selection and application of appropriate the Act, we are also responsible for expressing our opinion
accounting policies; making judgments and estimates that on whether the Company has adequate internal financial
are reasonable and prudent; and design, implementation and controls with reference to financial statements in place and
maintenance of adequate internal financial controls that were the operating effectiveness of such controls.
operating effectively for ensuring accuracy and completeness • Evaluate the appropriateness of accounting policies used
of the accounting records, relevant to the preparation and and the reasonableness of accounting estimates and
presentation of the standalone financial statements that give related disclosures in the standalone financial statements
a true and fair view and are free from material misstatement, made by the Management and Board of Directors.
whether due to fraud or error.
• Conclude on the appropriateness of the Management
and Board of Directors use of the going concern basis
In preparing the standalone financial statements, the
Management and Board of Directors are responsible for of accounting in preparation of standalone financial
assessing the Company’s ability to continue as a going statements and, based on the audit evidence obtained,
concern, disclosing, as applicable, matters related to going whether a material uncertainty exists related to events
concern and using the going concern basis of accounting or conditions that may cast significant doubt on the
unless the Board of Directors either intends to liquidate Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required
Hero MotoCorp Ltd. | Annual Report 2021-22 3

Independent Auditors’ Report (Contd.)
to draw attention in our auditor’s report to the related

disclosures in the standalone financial statements or, if b) In our opinion, proper books of account as
such disclosures are inadequate, to modify our opinion. required by law have been kept by the Company
Our conclusions are based on the audit evidence obtained so far as it appears from our examination of
up to the date of our auditor’s report. However, future those books.
events or conditions may cause the Company to cease to
continue as a going concern. c) The standalone balance sheet, the standalone
statement of profit and loss (including other
• Evaluate the overall presentation, structure and content comprehensive income), the standalone
of the standalone financial statements, including the statement of changes in equity and the
disclosures, and whether the standalone financial standalone statement of cash flows dealt
statements represent the underlying transactions and with by this Report are in agreement with
events in a manner that achieves fair presentation. the books of account.
We communicate with those charged with governance d) In our opinion, the aforesaid standalone
regarding, among other matters, the planned scope and financial statements comply with the Ind AS
timing of the audit and significant audit findings, including specified under section 133 of the Act.
any significant deficiencies in internal control that we
identify during our audit. e) On the basis of the written representations
received from the directors as on March
We also provide those charged with governance with a 31, 2022 taken on record by the Board of
statement that we have complied with relevant ethical Directors, none of the directors is disqualified
requirements regarding independence, and to communicate as on March 31, 2022 from being appointed as
with them all relationships and other matters that may a director in terms of Section 164(2) of the Act.
reasonably be thought to bear on our independence, and
where applicable, related safeguards. f) With respect to the adequacy of the internal
financial controls with reference to standalone
From the matters communicated with those charged with financial statements of the Company and the
governance, we determine those matters that were of most operating effectiveness of such controls, refer
significance in the audit of the standalone financial statements to our separate Report in “Annexure B”.
of the current period and are therefore the key audit matters.
We describe these matters in our auditors’ report unless law (B) With respect to the other matters to be included in
or regulation precludes public disclosure about the matter or the Auditor’s Report in accordance with Rule 11 of
when, in extremely rare circumstances, we determine that the Companies (Audit and Auditors) Rules, 2014, in
a matter should not be communicated in our report because our opinion and to the best of our information and
the adverse consequences of doing so would reasonably according to the explanations given to us:
be expected to outweigh the public interest benefits of
such communication. a. The Company has disclosed the impact of
pending litigations as at March 31, 2022 on its
financial position in its standalone financial
REPORT ON OTHER LEGAL AND statements - Refer Note 34 to the standalone
REGULATORY REQUIREMENTS financial statements;
1. As required by the Companies (Auditors’ Report) Order,
2020 (“the Order”) issued by the Central Government of b. According to the information and explanation
India in terms of section 143 (11) of the Act, we give in given to us, the Company did not have any
the “Annexure A” a statement on the matters specified in long-term contracts including derivative
paragraphs 3 and 4 of the Order, to the extent applicable. contracts for which there were any material
foreseeable losses;
2. (A) As required by Section 143(3) of the Act, we
report that: c. There has been no delay in transferring
amounts, required to be transferred, to the
a) We have sought and obtained all the Investor Education and Protection Fund by
information and explanations which to the best the Company, and
of our knowledge and belief were necessary for
the purposes of our audit.
4
d. (i) The management has represented that,
to the best of its knowledge and belief, (iii) Based on such audit procedures as
no funds have been advanced or loaned considered reasonable and appropriate
or invested (either from borrowed funds in the circumstances, nothing has come
or share premium or any other sources to our notice that has caused us to
or kind of funds) by the Company to or believe that the representations under
in any other persons or entities, sub-clause (d) (i) and (d) (ii) contain any
including foreign entities material mis-statement.
(“Intermediaries”), with the
understanding, whether recorded Refer Note 46 (vi) and 46 (vii) to the
standalone financial statements;
in writing or otherwise, that the
Intermediary shall:
e. The interim dividend declared and paid by
the Company during the year and until the
• directly or indirectly lend or invest in
other persons or entities identified in date of this audit report is in accordance with
any manner whatsoever (“Ultimate section 123 of the Companies Act 2013. The
Beneficiaries”) by or on behalf of the final dividend paid by the Company during the
Company or year in respect of the same declared for the
previous year is in accordance with section
• provide any guarantee, security 123 of the Companies Act 2013 to the extent
or the like to or on behalf of the it applies to payment of dividend. As stated in
Ultimate Beneficiaries. note 19 to the financial statements, the Board
of Directors of the Company have proposed
(ii) The management has represented, that, final dividend for the year which is subject to
to the best of its knowledge and belief, the approval of the members at the ensuing
no funds have been received by the Annual General Meeting. The dividend declared
Company from any persons or entities, is in accordance with section 123 of the Act to
including foreign entities (“Funding the extent it applies to declaration of dividend.
Parties”), with the understanding,
whether recorded in writing or otherwise, (C) With respect to the matter to be included in the
that the Company shall: Auditor’s Report under section 197(16):
• directly or indirectly, lend or invest in In our opinion and according to the information and
other persons or entities identified in explanations given to us, the remuneration paid by
any manner whatsoever (“Ultimate the Company to its directors during the current year
Beneficiaries”) by or on behalf of the is in accordance with the provisions of Section 197
Funding Party or of the Act. The remuneration paid to any director is
not in excess of the limit laid down under Section
• provide any guarantee, security
or the like from or on behalf of the 197 of the Act. The Ministry of Corporate Affairs has
Ultimate Beneficiaries. not prescribed other details under Section 197(16)
which are required to be commented upon by us.
For B S R & Co. LLP

Chartered Accountants
ICAI Firm Registration No.: 101248W/W-100022
Vikram Advani
Partner
Place: Gurugram Membership No.: 091765
Date: May 03, 2022 UDIN: 22091765AIIFJM7228
Hero MotoCorp Ltd. | Annual Report 2021-22

Annexure A referred to in the Independent Auditors’ Report

to the Members of Hero MotoCorp Limited on the standalone financial statements for the year ended 31 March 2022
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation
of Property, Plant and Equipment.
(a) (B) The Company has maintained proper records showing full particulars of intangible assets.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the Company has a regular programme of physical verification of its Property, Plant and Equipment by which
all property, plant and equipment are verified in a phased manner over a period of three years. In accordance with
this programme, certain property, plant and equipment were verified during the year. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties (other than immovable properties where the Company is the lessee
and the lease agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements
are held in the name of the Company as at balance sheet date except for the following which are not held in the name
of the Company.
Gross carrying value Whether promoter, Reason for not being held in
Description of Held in the Period held- indicate range,
as at March 31, director or their the name of the Company.
property name of relative or emplo where appropriate Also indicate, if in dispute
2022 yee
(Rs. In crores) Registration to Not applicable Since December 2020 till Registration to be applied for
Apartment 1, be applied for date of audit report
18.94
Gurugram Registration to Not applicable Since December 2020 till Registration to be applied for
Apartment 2, be applied for date of audit report
18.94
Gurugram
(d) According to the information and explanations

given to us and on the basis of our examination (b) According to the information and explanations given
of the records of the Company, the Company has to us and on the basis of our examination of the
not revalued its Property, Plant and Equipment records of the Company, the Company has not been
sanctioned any working capital limits on the basis of
(including Right of Use assets) or intangible assets
or both during the year. security of current assets at any point of time of the
year, in excess of five crore rupees in aggregate from
banks and financial institutions. Accordingly, clause
(e) According to information and explanations given
to us and on the basis of our examination of the 3(ii)(b) of the Order is not applicable to the Company.
records of the Company, there are no proceedings
initiated or pending against the Company for holding (iii) According to the information and explanations given to us
any benami property under the Prohibition of and on the basis of our examination of the records of the
Benami Property Transactions Act, 1988 and rules Company, the Company has not provided any guarantee
made thereunder. or security or granted advances in the nature of loans,
secured or unsecured to companies, firms, limited
(ii) (a) The inventory, except goods-in-transit and stocks liability partnership or any other parties during the year.
lying with third parties, has been physically verified The Company has made investment in a company and
by the management during the year. For stocks other parties.
lying with third parties at the year-end, written
confirmations have been obtained and for goods- Refer note 9 of the standalone financial statements.
in-transit subsequent evidence of receipts has
been linked with inventory records. In our opinion, The Company has not made any investments in firms or
limited liability partnership.
the frequency of such verification is reasonable
and procedures and coverage as followed by
management were appropriate. No discrepancies The Company has granted loans to other parties during
the year, in respect of which the requisite information
were noticed on verification between the physical
is given in 3(iii)(a)(B) below. Further, the Company has
stocks and the book records that were more than
not granted loans to companies, firms and limited
10% in the aggregate of each class of inventory.
liability partnership.
17
(a) (A) Based on the audit procedures carried on by us
and as per the information and explanations (f) According to the information and explanations
given to us, the Company has not provided given to us and on the basis of our examination of
loans to subsidiaries and associates. There is the records of the Company, the Company has not
no joint venture of the Company. granted any loans or advances in the nature of loans
either repayable on demand or without specifying
any terms or period of repayment.
(B) Based on the audit procedures carried on by us
and as per the information and explanations
given to us, the Company has provided loans to (iv) According to the information and explanations given to
parties other than subsidiaries and associates us and on the basis of our examination of the records
as below: of the Company, the Company has not given any loans,
or provided any guarantee or security as specified
under Section 185 and 186 of the Companies Act, 2013
Amount
Particulars
(Rs. is crores) (“the Act”). In respect of the investments made by the
39.36 Company, in our opinion the provisions of Section 186 of
Aggregate amount of loans given the Act have been complied with.
to employees during the year
Balance outstanding of loans 40.24
given to employees as at (v) The Company has not accepted any deposits or amounts
balance sheet date which are deemed to be deposits from the public.
Accordingly, clause 3(v) of the Order is not applicable.
(b) According to the information and explanations given
to us and based on the audit procedures conducted (vi) We have broadly reviewed the books of accounts
by us, we are of the opinion that the investments maintained by the Company pursuant to the rules
made and terms and conditions of the grant of prescribed by the Central Government for maintenance
loans provided to employees are, prima facie, not of cost records under Section 148(1) of the Act in respect
prejudicial to the interest of the company. Further, of its manufactured goods and are of the opinion that
the Company has not provided guarantees, given prima facie, the prescribed accounts and records have
security, granted loans or advances in the nature of been made and maintained. However, we have not carried
loans during the year. out a detailed examination of the records with a view to
determine whether these are accurate or complete.
(c) According to the information and explanations given
to us and on the basis of our examination of the (vii) (a) The Company does not have liability in respect of
records of the Company, in the case of loans given to Service tax, Duty of excise, Sales tax and Value
employees, in our opinion the repayment of principal added tax during the year since effective July 01,
and payment of interest has been stipulated and the 2017, these statutory dues have been subsumed
repayments or receipts have been regular. Further, into Goods and Services Tax (‘GST’).
the Company has not given any advance in the
nature of loan to any party during the year. According to the information and explanations
given to us and on the basis of our examination
of the records of the Company, in our opinion
(d) According to the information and explanations given
to us and on the basis of our examination of the amounts deducted/accrued in the books of account
records of the Company, there is no overdue amount in respect of undisputed statutory dues including
for more than ninety days in respect of loans given. GST, Provident fund, Employees’ State Insurance,
Further, the Company has not given any advances in Income-Tax, Duty of Customs, Cess and other
the nature of loans to any party during the year. statutory dues have generally been regularly
deposited with the appropriate authorities.
(e) According to the information and explanations given
to us and on the basis of our examination of the According to the information and explanations given
to us and on the basis of our examination of the
records of the Company, there is no loan or advance
records of the Company, no undisputed amounts
in the nature of loan granted, falling due during the
payable in respect of Goods and Services Tax
year, which has been renewed or extended or fresh
(‘GST’), Provident fund, Employees’ State Insurance,
loans granted to settle the overdues of existing
Income-Tax, Duty of Customs, Cess and other
loans given to same parties.
statutory dues were in arrears as at March 31, 2022
for a period of more than six months from the date
they became payable.

Annexure A referred to in the Independent Auditors’ Report (Contd.)
(b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, statutory dues relating to Goods and Service Tax, Provident Fund, Employees State Insurance, Income-
Tax, Duty of Customs or Cess or other statutory dues which have not been deposited on account of any dispute are
as follows:
Amount Amount paid Period to which the amount Forum where dispute is
Name of the statute Nature of the dues
(Rs. in crores) (Rs. in crores) relates pending
Customs Act Custom Duty 0.10 0.00* Financial year (“FY”) CESTAT (The Customs
2015-16 to FY 2016-17 Excise and Service
Tax
Central Excise Law Excise Duty 2.91 0.12 Appellate Tribunal)
FY 2004-05 to FY 2015-16, Additional Commissioner
Central Excise Law Excise Duty 59.28 1.64 FY 2017-18
Central Excise Law Excise Duty 0.78 0.02 FY 2004-05 to FY 2017-18 CESTAT
Central Goods and Goods and 0.09 0.01 FY 2014-15 to FY 2017-18 Commissioner Appeal
Services Tax Act, 2017 Services Tax (GST) FY 2017-18 GST Appellate Tribunal
Central Goods and Goods and 0.18 0.18 FY 2021-22 Joint commissioner
Services Tax Act, 2017 Services Tax (GST) Appeals
Finance Act, 1994 Service Tax 233.11 24.99 FY 2004-05 to FY 2011- 12 CESTAT
Finance Act, 1994 Service Tax 0.89 0.45 FY 2004-05 to FY 2005- 06 Supreme Court
Income-tax Act, 1961 Income-tax 2,336.71 350.51 FY 2010-11 Commissioner of
Income Tax (Appeals)
Income-tax Act, 1961 Income-tax 9.94 - FY 2018-19 Commissioner of
Income Tax (Appeals)
* Rs. 38,452 in absolute terms.
The following matters have been decided in favour of the Company, but the department has preferred appeals at
higher levels
Amount paid as
Amount per stay order/ Period to which the Forum where dispute
Name of the statute Nature of the dues
(Rs. in crores) mandatory deposit amount relates is pending
(Rs. in crores)
Central Excise Law Excise Duty 85.66 - FY 2009-10 to FY 2010-11, CESTAT
FY 2013-14
Central Excise Law Excise Duty 8.78 - FY 2002-03 to FY 2008- 09 Supreme Court
Income-tax Act, 1961 Income-tax 4.10 - FY 2005-06 Supreme Court
Income-tax Act, 1961 Income-tax 7,367.64 - FY 1995-96, FY 1996-97, High Court
FY 1997-98, FY 1998-99,
FY 2000-01, FY 2002-03,
FY 2003-04, FY 2006-07,
FY 2009-10, FY 2010-11,
FY 2011-12, FY 2012-13
Income-tax Act, 1961 Income-tax 305.22 - FY 2013-14 Income Tax
Appellate Tribunal
(viii) According to the information and explanations given to us

and on the basis of our examination of the records of the (b) According to the information and explanations given
Company, the Company has not surrendered or disclosed to us and on the basis of our examination of the
any transactions, previously unrecorded as income in records of the Company, the Company has not been
declared a wilful defaulter by any bank or financial
the books of account, in the tax assessments under the
Income Tax Act, 1961 as income during the year. institution or government or government authority.
(ix) (a) According to the information and explanations given (c) According to the information and explanations given
to us and on the basis of our examination of the to us by the management, the Company has not
records of the Company, the Company did not have obtained any term loans during the year. Accordingly,
any loans or borrowings from any lender during the clause 3(ix)(c) of the Order is not applicable.
year. Accordingly, clause 3(ix)(a) of the Order is not
applicable to the Company.
17
(d) According to the information and explanations
given to us and on an overall examination of the (xiii)In our opinion and according to the information and
balance sheet of the Company, we report that no explanations given to us and on the basis of examination
funds raised on short-term basis have been used of the records of the Company, the transactions with
for long-term purposes by the Company. related parties are in compliance with Section 177 and
188 of the Companies Act, 2013, where applicable, and
the details of the related party transactions have been
(e) According to the information and explanations
given to us and on an overall examination of the disclosed in the standalone financial statements as
standalone financial statements of the Company, required by the applicable accounting standards.
we report that the Company has not taken any
funds from any entity or person on account of (xiv) (a) Based on information and explanations provided
to us and our audit procedures, in our opinion,
or to meet the obligations of its subsidiaries or
associates as defined under the Act. the Company has an internal audit system
commensurate with the size and nature of
(f) According to the information and explanations its business.
given to us and procedures performed by us, we
report that the Company has not raised loans (b) We have considered the internal audit reports of the
during the year on the pledge of securities held Company issued till date for the period under audit.
in its subsidiaries, joint ventures or associate
companies (as defined under the Act). (xv) In our opinion and according to the information and
explanations given to us, the Company has not entered
into any non-cash transactions with its directors
(x) (a) The Company has not raised any moneys by way of
initial public offer or further public offer (including or persons connected to its directors and hence,
debt instruments) Accordingly, clause 3(x)(a) of the provisions of Section 192 of the Act are not applicable
Order is not applicable. to the Company.
(b) According to the information and explanations given (xvi) (a) The Company is not required to be registered under
to us and on the basis of our examination of the Section 45-IA of the Reserve Bank of India Act,
records of the Company, the Company has not made 1934. Accordingly, clause 3(xvi)(a) of the Order is
any preferential allotment or private placement not applicable.
of shares or fully or partly convertible debentures
during the year. Accordingly, clause 3(x)(b) of the (b) The Company is not required to be registered under
Section 45-IA of the Reserve Bank of India Act,
Order is not applicable.
1934. Accordingly, clause 3(xvi)(b) of the Order is
not applicable.
(xi) (a) Based on examination of the books and records of
the Company and according to the information and
explanations given to us, no material fraud by the (c) The Company is not a Core Investment Company
Company or on the Company has been noticed or (CIC) as defined in the regulations made by the
reported during the course of the audit. Reserve Bank of India. Accordingly, clause 3(xvi)(c)
of the Order is not applicable.
(b) According to the information and explanations given
to us, no report under sub-section (12) of Section (d) Based on representation by management and
143 of the Act has been filed by the auditors in according to the information and explanations
Form ADT-4 as prescribed under Rule 13 of the provided to us, the Group (as per the provisions
Companies (Audit and Auditors) Rules, 2014 with of the Core Investment Companies (Reserve
the Central Government. Bank) Directions, 2016) has one CICs as part
of the Group as detailed in note 46 (viii) to the
(c) We have taken into consideration the whistle blower
complaints received by the Company during the year
while determining the nature, timing and extent of (xvii) The Company has not incurred cash losses in the
current and in the immediately preceding financial year.
our audit procedures.
(xii) According to the information and explanations given to (xviii) There has been no resignation of the statutory auditors
us, the Company is not a Nidhi Company. Accordingly, during the year. Accordingly, clause 3(xviii) of the Order is
clause 3(xii) of the Order is not applicable. not applicable.

Annexure A referred to in the Independent Auditors’ Report (Contd.)
(xix)According to the information and explanations given

to us and on the basis of the financial ratios, ageing nor any assurance that all liabilities falling due within a
and expected dates of realisation of financial assets period of one year from the balance sheet date, will get
and payment of financial liabilities, other information discharged by the Company as and when they fall due.
accompanying the standalone financial statements, our
knowledge of the Board of Directors and management (xx) In our opinion and according to the information and
explanations given to us, there is no unspent amount
plans and based on our examination of the evidence
under sub-section (5) of Section 135 of the Act pursuant
supporting the assumptions, nothing has come to our
to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of
attention, which causes us to believe that any material
the Order are not applicable.
uncertainty exists as on the date of the audit report
that the Company is not capable of meeting its liabilities
For B S R & Co. LLP
existing at the date of balance sheet as and when they fall
due within a period of one year from the balance sheet Chartered Accountants
ICAI Firm registration No.: 101248W/W-100022
date. We, however, state that this is not an assurance as
to the future viability of the Company. We further state
Vikram Advani
that our reporting is based on the facts up to the date
Partner
of the audit report and we neither give any guarantee
Date: May 03, 2022 UDIN: 22091765AIIFJM7228
Annexure B to the Independent Auditors’ report

on the standalone financial statements of Hero MotoCorp Limited for the period ended 31 March 2022
Report on the internal financial controls with reference to

the aforesaid standalone financial statements under Clause (i) Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (the “Guidance Note”).
of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph 2A(f) under ‘Report on Other Legal and MANAGEMENT’S AND BOARD OF DIRECTORS’
Regulatory Requirements’ section of our report of even date)
RESPONSIBILITY FOR INTERNAL FINANCIAL
OPINION CONTROLS
We have audited the internal financial controls with reference The Company’s management and the Board of Directors are
to standalone financial statements of Hero MotoCorp Limited responsible for establishing and maintaining internal financial
(“the Company”) as of March 31, 2022 in conjunction with our controls based on the internal financial controls with reference
audit of the standalone financial statements of the Company to the standalone financial statements criteria established by
for the year ended on that date. the Company considering the essential components of internal
control stated in the Guidance Note. These responsibilities
include the design, implementation and maintenance of
In our opinion, the Company has, in all material respects,
adequate internal financial controls with reference to the adequate internal financial controls that were operating
standalone financial statements and such internal financial effectively for ensuring the orderly and efficient conduct of
controls were operating effectively as at March 31, 2022, its business, including adherence to company’s policies, the
based on the internal financial controls with reference to the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the
standalone financial statements criteria established by the
accounting records, and the timely preparation of reliable
Company considering the essential components of internal
financial information, as required under the Companies Act,
control stated in the Guidance Note on Audit of Internal
2013 (hereinafter referred to as “the Act”).
Financial
17
on the standalone financial statements of Hero MotoCorp Limited for the period ended 31 March 2022
AUDITORS’ RESPONSIBILITY with generally accepted accounting principles. A company's

Our responsibility is to express an opinion on the Company's internal financial controls with reference to the standalone
internal financial controls with reference to standalone financial statements include those policies and procedures
financial statements based on our audit. We conducted our that (1) pertain to the maintenance of records that, in
audit in accordance with the Guidance Note and the Standards reasonable detail, accurately and fairly reflect the transactions
on Auditing, prescribed under section 143(10) of the Act, to and dispositions of the assets of the company; (2) provide
the extent applicable to an audit of internal financial controls reasonable assurance that transactions are recorded as
with reference to the standalone financial statements. Those necessary to permit preparation of the standalone financial
Standards and the Guidance Note require that we comply statements in accordance with generally accepted accounting
with ethical requirements and plan and perform the audit to principles, and that receipts and expenditures of the company
obtain reasonable assurance about whether adequate internal are being made only in accordance with authorisations of
financial controls with reference to financial statements management and directors of the company; and (3) provide
were established and maintained and whether such controls reasonable assurance regarding prevention or timely
operated effectively in all material respects. detection of unauthorised acquisition, use, or disposition of
the company's assets that could have a material effect on the
Our audit involves performing procedures to obtain audit standalone financial statements.
evidence about the adequacy of the internal financial controls
with reference to the standalone financial statements
and their operating effectiveness. Our audit of internal INHERENT LIMITATIONS OF INTERNAL
financial controls with reference to the standalone financial FINANCIAL CONTROLS WITH REFERENCE TO
statements included obtaining an understanding of such
internal financial controls, assessing the risk that a material THE STANDALONE FINANCIAL STATEMENTS
weakness exists, and testing and evaluating the design Because of the inherent limitations of internal financial
and operating effectiveness of internal control based on controls with reference to the standalone financial
the assessed risk. The procedures selected depend on the statements, including the possibility of collusion or improper
auditor’s judgement, including the assessment of the risks of management override of controls, material misstatements
material misstatement of the standalone financial statements, due to error or fraud may occur and not be detected. Also,
whether due to fraud or error. projections of any evaluation of the internal financial controls
with reference to the standalone financial statements to
We believe that the audit evidence we have obtained is future periods are subject to the risk that the internal financial
sufficient and appropriate to provide a basis for our audit controls with reference to the standalone financial statements
opinion on the Company’s internal financial controls with may become inadequate because of changes in conditions, or
reference to the standalone financial statements. that the degree of compliance with the policies or procedures
may deteriorate.
MEANING OF INTERNAL FINANCIAL For B S R & Co. LLP
CONTROLS WITH REFERENCE TO Chartered Accountants
STANDALONE FINANCIAL STATEMENTS
A company's internal financial controls with reference to Vikram Advani
the standalone financial statements is a process designed Partner
to provide reasonable assurance regarding the reliability of Place: Gurugram Membership No.: 091765
financial reporting and the preparation of the standalone Date: May 03, 2022 UDIN: 22091765AIIFJM7228
financial statements for external purposes in accordance

Standalone Balance Sheet

as at March 31, 2022
(Amount in crores of INR)

As at As at
Particulars Note
March 31, 2022 March. 31, 2021
ASSETS
Non-current assets
(a) Property, plant and equipment 5 5,094.39 5,293.40
(b) Capital work-in-progress 6 87.32 177.86
(c) Right of use of assets 7A 413.59 404.75
(d) Other intangible assets 7 298.50 290.26
(e) Intangible assets under development 8 370.88 258.73
(f) Financial assets
(i) Investments 9 4,814.66 4,308.18
(ii) Loans 10 17.43 16.73
(iii) Others 11 41.60 35.50
(g) Income tax assets (net) 12 340.92 368.19
(h) Other non-current assets
13 119.77 54.66
Total Non-Current Assets
11,599.06 11,208.26
Current assets
(a) Inventories 14 1,122.65 1,469.55
(b) Financial assets
(i) Investments 9 5,837.66 6,191.49
(ii) Trade receivables 15 2,304.27 2,426.76
(iii) Cash and cash equivalents 16 98.68 169.22
(iv) Bank balances other than (iii) above 17 76.44 87.93
(v) Loans 10 22.81 22.95
(vi) Others 11 454.80 371.52
(c) Other current assets 13 197.65 213.37
Total Current Assets 10,114.96 10,952.79
Total Assets 21,714.02 22,161.05
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital 18 39.96 39.96
(b) Other equity 19 15,742.96 15,158.47
Total equity 15,782.92 15,198.43
LIABILITIES
Non-current liabilities
(a) Financial liabilities
(i) Lease liability 7A 142.32 129.81
(ii) Other Financial Liabilities 155.04 146.04
(b) Provisions 20 178.07 172.46
(c) Deferred tax liabilities (net) 21 383.29 404.09
Total Non-Current Liabilities 858.72 852.40
Current liabilities
(i) Lease liability 7A 25.75 19.70
(ii) Trade payables
Total outstanding dues of micro and small enterprises 22 25.55 15.71
Total outstanding dues of creditors other than micro and small enterprises 22 4,234.79 5,188.90
(iii) Other financial liabilities
(b) Other current liabilities 23 133.75 159.53
(c) Provisions 24 492.12 566.01
Total Current Liabilities 20 160.42 160.37
Total Equity and Liabilities 5,072.38 6,110.22
The notes referred to above form an integral part of the standalone financials statements 21,714.02 22,161.05
1-46
Hero MotoCorp Limited

As per our report of even date attached For and on behalf of the Board of Directors of
For B S R & Co. LLP
ICAI Firm’s Registration Pawan Munjal M. Damodaran

No.: 101248W/W-100022 Chairman & CEO Chairman Audit Committee
DIN: 00004223 DIN: 02106990
Vikram Advani Niranjan Kumar Gupta Pradeep Dinodia Dhiraj Kapoor

Partner Chief Financial Officer Non-Executive Director Company Secretary
Membership No.: 091765 DIN: 00027995
UDIN: 22091765AIIFJM7228
Place: Gurugram Place: Gurugram

Date: May 3, 2022 Date: May 3, 2022
17
Standalone Statement of Profit and Loss
for the year ended March 31, 2022

For the year ended For the year ended
Particulars Note
March 31, 2022 March 31, 2021
INCOME
Revenue from operations 25 29,245.47 30,800.62
Other income 26 556.91 579.85
Total Income 29,802.38 31,380.47
EXPENSES
Cost of raw materials consumed 27 20,708.07 21,875.33
Purchase of stock in trade 45.95 30.46
Change in inventories of finished goods, stock in trade and work-in-progress 28 72.71 (143.46)
Employee benefits expenses 29 1,935.44 1,898.72
Finance costs 30 25.80 21.84
Depreciation and amortisation expense 5, 7 and 7A 649.75 676.87
Other expenses 31 3,114.53 3,120.33
Total expenses 26,552.25 27,480.09
Profit before tax 3,250.13 3,900.38
Tax expense
Current tax 797.91 924.92
Deferred tax (credit)/charge (20.80) 11.26
Total tax expense 777.11 936.18
Profit for the year 2,473.02 2,964.20
Other comprehensive income/ (expense)
Items that will not be reclassified subsequently to profit or loss:-
Re-measurement losses on defined benefit plans (7.27) (28.14)
Income tax effect 1.83 7.08
Net other comprehensive income not to be reclassified to profit or loss (5.44) (21.06)
Total Comprehensive income for the year, net of income tax 2,467.58 2,943.14
Earnings per share (Nominal Value of ` 2 each) in ` 33
(a) Basic 123.78 148.39
(b) Diluted 123.74 148.37
The notes referred to above form an integral part of the standalone financials statements 1-46

For B S R & Co. LLP

DIN: 00004223 DIN: 02106990



Standalone Statement of Cash Flow


Particulars Year ended March 31, 2022 Year ended March 31, 2021
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit after tax 2,473.02 2,964.20
Adjustments for:
Add: Depreciation and amortisation 649.75 676.87
Tax expense 777.11 936.18
Loss on property, plant and equipment sold/discarded 10.23 4.67
Finance cost 25.80 21.84
Employee Stock Compensation Cost 10.00 8.86
Loss allowance on advances 52.24 -
Loss allowance on trade receivables - 45.80
1,525.13 1,694.22
Less: Interest income on financial assets carried at amortised cost 186.29 95.10
Dividend income 14.48 33.72
Profit on sale of investments 101.37 167.13
Gain on investments carried at fair value through profit or loss 223.82 283.01
Profit on sale of property, plant and equipment 0.62 0.89
526.58 579.85
Operating profit before working capital changes 3,471.57 4,078.57
Changes in working capital:
Adjustment for (increase)/decrease in operating assets:
Inventories 346.90 (377.58)
Trade receivables 122.49 (869.42)
Loans-Current 0.14 (14.58)
Loans-Non-Current (0.70) 5.42
Other financial assets (89.38) 6.70
Other current assets (36.52) 66.77
(4.67) (3.79)
Other non-current assets
338.26 (1,186.48)
Adjustment for increase/(decrease) in operating liabilities:
Trade payables (944.27) 2,174.10
Other financials liabilities - Current (0.98) (1.10)
Other current liabilities (73.89) 47.75
Current provisions 0.05 13.81
Non-current provisions (1.66) 21.95
(1,020.75) 2,256.51
Cash generated from operations 2,789.08 5,148.60
Less: Direct tax paid (net of refund) 768.81 975.90
Net cash generated from operating activities 2,020.27 4,172.70
18
Standalone Statement of Cash Flow

B. CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure on property, plant and equipment, intangible (534.69) (514.56)
assets, capital work in progress and intangible assets under
development
including capital advances 10.67 4.50
Proceeds from sale of property, plant & equipment (1.23) (1.77)
Deposits made 42,427.64 47,930.03
Sale of investments (42,105.10) (49,374.33)
Purchase of investments (150.00) (368.37)
Investment in associates - (14.22)
Investment in subsidiaries 186.29 95.10
Interest income on financial assets carried at amortised cost 14.48 33.72
(151.94) (2,209.90)
Dividend income
Net cash (used) in investing activities
C. CASH FLOW FROM FINANCING ACTIVITIES (25.80) (21.84)
(19.98) (29.67)
Interest paid
(1,898.13) (1,897.81)
Repayment of lease liabilities
5.04 7.83
Dividends paid
(1,938.87) (1,941.49)
Proceeds from issue of equity share capital (including share premium)
(70.54) 21.31
Net cash (used) in financing activities
169.22 147.91
D. INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C)
98.68 169.22
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Also refer to note 7A for reconciliation of cash flows from financial liabilities.
The Statement of Cash Flows has been prepared in accordance with “Indirect method” as set out in Ind AS 7 on “Statement of
Cash Flows”, as notified under Section 133 of the Companies Act 2013, read with the relevant rules thereunder.
The notes referred to above form an integral part of the standalone financials statements 1 - 46
As per our report of even date attached For and on behalf of the Board of Directors
of For B S R & Co. LLP Hero MotoCorp Limited
DIN: 00004223 DIN: 02106990



Standalone Statement of Changes in Equity

(Amount in crore of INR)
A. EQUITY SHARE CAPITAL

As at March 31, 2022 As at March 31, 2021
Number of shares Amount Number of shares Amount
Opening balance 199,780,217 39.96 199,739,368 39.95
Issue of equity shares under employee share option plan 31,724 # 40,849 0.01
(# Rs. 63,448) (March 31, 2021: Rs. 81,698) (Note 40)
Closing balance 199,811,941 39.96 199,780,217 39.96
B. OTHER EQUITY*
Reserves and surplus
Share
Capital Securities General options Retained
Total
reserve premium reserve outstanding earnings
account
Balance as at March 31, 2020 # 18.40 2,645.79 15.44 11,416.82 14,096.45
Profit for the year - - - - 2,964.20 2,964.20
Other comprehensive income for the year, net of income tax - - - - (21.06) (21.06)
Total Comprehensive Income for the year # - - - 2,943.14 2,943.14
Charge against share-based payments - - - 8.86 - 8.86
Transferred to share premium on issue of shares - 5.26 - (5.26) - -
Payment of dividends - - - - (1,897.81) (1,897.81)
- 7.83 - - - 7.83
Issue of equity shares under employee share option plan
Balance as at March 31, 2021 # 31.49 2,645.79 19.04 12,462.15 15,158.47
- - - - 2,473.02 2,473.02
Profit for the year
- - - - (5.44) (5.44)
Other comprehensive income for the year, net of income tax
- - - - 2,467.58 2,467.58
Total Comprehensive Income for the year
- - - 10.00 - 10.00
Charge against share-based payments
- 4.59 - (4.59) - -
Transferred to share premium on issue of shares
- - - - (1,898.13) (1,898.13)
Payment of dividends
- 5.04 - - - 5.04
Issue of equity shares under employee share option plan # 41.12 2,645.79 24.45 13,031.60 15,742.96
Balance as at March 31, 2022
*Purpose of each reserve within Other Equity has been disclosed under Note 19.
#
on shares forfeited (Rs. 4,250 in absolute INR) and share premium account on forefeited shares reissued (Rs. 25,500 in absolute INR)
The notes referred to above form an integral part of the standalone financials statements 1 - 46
For B S R & Co. LLP Hero MotoCorp Limited
DIN: 00004223 DIN: 02106990


18
Notes forming part of the standalone financial statements
1. GENERAL INFORMATION amount that reflects the consideration which the

Hero MotoCorp Limited (the Company) is a public Company expects to receive in exchange for those
company domiciled and incorporated under the provisions products or services. Revenue excludes taxes or duties
of the Companies Act, 1956 on January 19, 1984. The collected on behalf of the government.
Company’s registered office and principal place of
business is The Grand Plaza, Plot No. 2, Nelson Mandela • Revenue from sale of goods is recognised when
Road, Vasant Kunj – Phase II, New Delhi – 110070, control of goods are transferred to the buyer which
India. The shares of the Company are listed on two stock is generally on dispatch for domestic sales and on
exchanges in India i.e. National Stock Exchange (NSE) dispatch/ delivery on local port in India for export
and Bombay Stock Exchange (BSE). The Company is sales, as per the terms of the sale.
engaged in the manufacturing and selling of motorised
two-wheelers, spare parts and related services. The • Revenue from providing services is recognized in the
Company is a leading two wheeler manufacturer and accounting period in which services are rendered.
has a dominant presence in domestic market. • Revenue from service is based on number of services
provided to the end of reporting period as a proportion
The standalone financial statements for the year ended of the total number of services to be provided.
March 31, 2022 were approved by the Board of Directors
and authorised for issue on May 03, 2022. Revenue is measured based on the transaction price,
which is the consideration, adjusted for volume discounts,
2. BASIS OF PREPARATION AND performance bonuses, price concessions and incentives,
if any, as specified in the contract with the customer.
PRESENTATION Revenue also excludes taxes collected from customers.
2.1 Statement of Compliance
The standalone financial statements have been prepared A liability is recognised where payments are received
in accordance with Indian Accounting Standards (Ind AS) from customers before transferring control of the goods
as per the Companies (Indian Accounting Standards) being sold or providing services to the customer.
Rules, 2015 notified under section 133 of Companies Act,
2013, (the ‘Act’) and other relevant provisions of the Act. The Company disaggregates revenue from contracts with
customers by nature of goods and service.
2.2 Basis of measurement
Dividend income is recorded when the right to receive
The standalone financial statements have been payment is established. Interest income is recognised
prepared on the historical cost basis except for certain
using the effective interest method.
financial instruments, net defined benefit asset/liability
and liabilities for equity settled share based payment
Royalty income is recognized on accrual basis
arrangements that are measured at fair values at the end in accordance with the substance of their
of each reporting period, as explained in the accounting
relevant agreements.
policies below. These standalone financial statements
are presented in Indian Rupee (INR), which is also the
3.2 Leasing
Company’s functional currency. All amounts have been
rounded-off to the nearest crores, up to two decimals A contract is, or contains, a lease if the contract conveys
unless otherwise stated. the right to control the use of an identified asset for a
period of time in exchange for consideration.
2.3 Operating Cycle
The Company as a lessee
Based on the nature of products/ activities of the
The Company’s lease asset classes primarily consist of
Company and the normal time between acquisition of
leases for land and buildings. The Company assesses
assets and their realization in cash or cash equivalents,
whether a contract contains a lease, at inception of a
the Company has determined its operating cycle as less
contract. A contract is, or contains, a lease if the contract
than 12 months for the purpose of classification of its
conveys the right to control the use of an identified asset
assets and liabilities as current and non-current.
for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control
3. SIGNIFICANT ACCOUNTING POLICIES the use of an identified asset, the Company assesses
3.1 Revenue Recognition whether: (i) the contract involves the use of an identified
asset (ii) the Company has substantially all of the
Revenue is recognised upon transfer of control of economic benefits from use of the asset through the
promised products or services to customers for an
period of the lease and (iii) the Company has the right to
direct the use of the asset.


At the date of commencement of the lease, the

Company recognizes a right-of-use asset (“ROU”) and a 3.3 Foreign currencies
corresponding lease liability for all lease arrangements In preparing the standalone financial statements of
in which it is a lessee, except for leases with a term of the Company, transactions in currencies other than
twelve months or less (short-term leases) and low value the Company’s functional currency (foreign currencies)
leases. For these short-term and low value leases, the are recognised at the rates of exchange prevailing
Company recognizes the lease payments as an operating at the dates of the transactions. At the end of each
expense on a straight-line basis over the term of reporting period, monetary items denominated in foreign
the lease. currencies are translated at the rates prevailing at that
date. Non-monetary items that are measured in terms of
Certain lease arrangements includes the options to historical cost in a foreign currency are not translated.
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes Exchange differences on monetary items are recognised
these options when it is reasonably certain that they will in the Statement of profit and loss in the period in which
be exercised. they arise.
The right-of-use assets are initially recognized at cost, 3.4 Borrowing costs
which comprises the initial amount of the lease liability
Borrowing costs directly attributable to the acquisition,
adjusted for any lease payments made at or prior to the construction or production of qualifying assets, which are
commencement date of the lease plus any initial direct assets that necessarily take a substantial period of time
costs less any lease incentives. They are subsequently to get ready for their intended use or sale, are added to
measured at cost less accumulated depreciation and the cost of those assets, until such time as the assets are
impairment losses. substantially ready for their intended use or sale.
Right-of-use assets are depreciated from the All other borrowing costs are recognised in the Statement
commencement date on a straight-line basis over the of profit and loss in the period in which they are incurred.
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
3.5 Government grants
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. Government grants are not recognised until there is
reasonable assurance that the Company will comply with
For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell the conditions attached to them and that the grants will
and the value-in-use) is determined on an individual asset be received.
basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In Government grants are recognised in the Statement of
profit and loss on a systematic basis over the periods
such cases, the recoverable amount is determined for the
in which the Company recognises the related costs
Cash Generating Unit (CGU) to which the asset belongs.
as expenses, if any, for which the grants are intended
to compensate.
The lease liability is initially measured at amortized
cost at the present value of the future lease payments.
The lease payments are discounted using the interest 3.6 Employee benefits
rate implicit in the lease or, if not readily determinable, Defined contribution plans
using the incremental borrowing rates in the country A defined contribution plan is a post-employment
of domicile of these leases. Lease liabilities are benefit plan under which the Company pays fixed
remeasured with a corresponding adjustment to the contributions into a separate entity and will have no
related right of use asset if the Company changes its legal or constructive obligation to pay further amounts.
assessment if whether it will exercise an extension or a Payments to defined contribution plans are recognised
termination option. as an expense when employees have rendered service
entitling them to the contributions.
Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have Defined benefit plans
been classified as financing cash flows. For defined benefit plans, the cost of providing benefits is
determined using the projected unit credit method, with
Refer note 7A for other disclosures. actuarial valuations being carried out at the end of each
annual reporting period. Re-measurement, comprising
actuarial gains and losses and the return on plan assets
18
(excluding net interest), is reflected immediately in the

balance sheet with a charge or credit recognised in other The fair value determined at the grant date of the
comprehensive income in the period in which they occur. equity-settled share-based payments is expensed on
Re-measurement recognised in other comprehensive a straight-line basis over the vesting period, based on
income is reflected immediately in retained earnings and the Company’s estimate of equity instruments that
is not reclassified to the Statement of profit and loss. Net will eventually vest, with a corresponding increase in
interest is calculated by applying the discount rate at the equity. At the end of each reporting period, the Company
beginning of the period to the net defined benefit liability revises its estimate of the number of equity instruments
or asset. Defined benefit costs are categorised as follows: expected to vest. The impact of the revision of the original
estimates, if any, is recognised in the Statement of profit
and loss such that the cumulative expense reflects the
• service cost (including current service cost,
past service cost, as well as gains and losses or revised estimate, with a corresponding adjustment to the
curtailments and settlements); Share option’s outstanding account.
• net interest expense or income; and 3.8 Taxation

• re-measurement Income tax expense represents the sum of the tax
currently payable and deferred tax.
The Company presents the first two components of
defined benefit costs in the statement of profit and Current tax
loss in the line item Employee benefit expense and third The tax currently payable is based on taxable profit for
components is present in other comprehensive income. the year. Taxable profit differs from profit before tax as
reported in the statement of profit and loss because
The retirement benefit obligation recognised in the of items of income or expense that are taxable or
balance sheet represents the actual deficit or surplus deductible in other years and items that are never taxable
in the Company’s defined benefit plans. Any surplus or deductible. The Company’s current tax is calculated
resulting from this calculation is limited to the present using tax rates that have been enacted by the end of the
value of any economic benefits available in the form reporting period.
of refunds from the plan or reductions in future
contributions to the plans. Deferred tax
Deferred tax is recognised on temporary differences
Short-term employee benefits between the carrying amounts of assets and liabilities
Liabilities recognised in respect of wages and salaries and in the standalone financial statements and the
other short-term employee benefits are measured at the corresponding tax bases used in the computation of
undiscounted amount of the benefits expected to be paid taxable profit. Deferred tax liabilities are generally
in exchange for the related service and are expensed as recognised for all taxable temporary differences.
the related services are provided. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it
Other long-term employee benefits is probable that taxable profits will be available against
Liabilities recognised in respect of other long-term which those deductible temporary differences can
employee benefits such as long term service awards and be utilised.
compensated absences are measured at the present
value of the estimated future cash outflows expected to The carrying amount of deferred tax assets is reviewed
be made by the Company in respect of services provided at the end of each reporting period and reduced to the
by employees up to the reporting date based on the extent that it is no longer probable that sufficient taxable
actuarial valuation using the projected unit credit method profits will be available to allow all or part of the asset to
carried out at the year-end. Re measurement gain or be recovered.
losses are recognised in the statement of profit and loss
in the period in which they arise. Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the
3.7 Share-based payment arrangements liability is settled or the asset realised, based on tax rates
(and tax laws) that have been enacted or substantively
Equity-settled share-based payments to employees are
measured at the fair value of the equity instruments at enacted by the end of the reporting period.
the grant date. Details regarding the determination of the
fair value of equity-settled share-based transactions are The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the
set out in note 40.
manner in which the Company expects, at the end of the


reporting period, to recover or settle the carrying amount

of its assets and liabilities. Depreciation is charged on a pro-rata basis at the straight
line method as per the useful lives prescribed in Schedule
II to the Companies Act, 2013, other than moulds and dies
Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities which are depreciated over a period of 3-8 years grouped
and assets and they are related to income taxes levied by under property, plant and equipment.
the same tax authority.
An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
Current and deferred tax are recognised in the Statement
of profit and loss, except when they relate to items that expected to arise from the continued use of the asset.
are recognised in other comprehensive income or directly Any gain or loss arising on the disposal or retirement of
in equity, in which case, the current and deferred tax are an item of property, plant and equipment is determined
also recognised in other comprehensive income or directly as the difference between the sales proceeds and the
in equity respectively. carrying amount of the asset and is recognised in the
Statement of Profit and loss.
3.9 Property, plant and equipment
3.10 Intangible assets
Property, plant and equipment (including furniture,
fixtures, vehicles, etc.) held for use in the production Intangible assets acquired separately
or supply of goods or services, or for administrative Intangible assets with finite useful lives that are
purposes, are stated in the balance sheet at cost less acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses, if
accumulated depreciation and accumulated impairment
losses, if any. Cost of acquisition is inclusive of freight, any. Amortisation is recognised on a straight-line basis
duties, taxes and other incidental expenses. Freehold over their estimated useful lives. The estimated useful
land is not depreciated. life and amortisation method are reviewed at the end
of each reporting period, with the effect of any changes
in estimate being accounted for on a prospective basis.
Property, plant and equipment in the course of
construction for production, supply or administrative Intangible assets with indefinite useful lives that are
purposes are carried at cost, less any recognised acquired separately are carried at cost less accumulated
impairment loss. Cost includes items directly attributable impairment losses, if any.
to the construction or acquisition of the item of property,
plant and equipment and capitalised borrowing cost. Such Internally-generated intangible assets - research and
properties are classified to the appropriate categories development expenditure
Expenditure on research activities is recognised as an
of property, plant and equipment when completed and
expense in the period in which it is incurred.
ready for intended use.
Subsequent costs are included in the assets carrying An internally-generated intangible asset arising from
amount or recognized as a separate asset, as appropriate development (or from the development phase of an
only if it is probable that the future economic benefits internal project) is recognised if, and only if, all of the
associated with the item will flow to the Company and following have been demonstrated:
that the cost of the item can be reliably measured. The
carrying amount of any component accounted for as a • the technical feasibility of completing the intangible
asset so that it will be available for use or sale;
separate asset is derecognized when replaced. All other
repairs and maintenance are charged to statement of • the intention to complete the intangible asset and use
profit and loss during the reporting period in which they or sell it;
are incurred.
• the ability to use or sell the intangible asset;
Depreciation of these assets, on the same basis as-other • how the intangible asset will generate probable future
property assets, commences when the assets are ready economic benefits;
for their intended use.
• the availability of adequate technical, financial and
other resources to complete the development and to
Depreciation is recognised on the cost of assets (other
than freehold land and properties under construction) use or sell the intangible asset; and
less their residual values over their useful lives, using the • the ability to measure reliably the expenditure
straight-line method. The estimated useful lives, residual attributable to the intangible asset during
values and depreciation method are reviewed at the end its development.
of each reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.
18
The amount initially recognised for internally-generated

intangible assets is the sum of the expenditure When it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates
incurred from the date when the intangible asset first
meets the recognition criteria listed above. Where no the recoverable amount of the cash- generating unit
internally-generated intangible asset can be recognised, to which the asset belongs. When a reasonable and
development expenditure is recognised in the Statement consistent basis of allocation can be identified, corporate
of profit and loss in the period in which it is incurred. assets are also allocated to individual cash-generating
units, or otherwise they are allocated to the smallest
group of cash-generating units for which a reasonable
Subsequent to initial recognition, internally-generated
intangible assets are reported at cost less accumulated and consistent allocation basis can be identified.
amortisation and accumulated impairment losses,
on the same basis as intangible assets that are If the recoverable amount of an asset (or cash-generating
acquired separately. unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use or is recognised immediately in the Statement of profit and
disposal. Gains or losses arising from de-recognition of loss. An impairment loss is reversed in the Statement
an intangible asset, measured as the difference between of Profit and Loss if there has been a change in the
the net disposal proceeds and the carrying amount of the estimates used to determine the recoverable amount.
asset, and are recognised in the Statement of profit and The carrying amount of the asset is increased to its
loss when the asset is derecognised. revised recoverable amount, provided that this amount
does not exceed the carrying amount that would have
Useful lives of intangible assets been determined (net of any accumulated depreciation)
had no impairment loss been recognized for the asset in
Intangible assets such as expenditure on model fee etc.
are amortised on a straight line method over a period of 5 prior years.
years and computer software are amortised on a straight
line method over a period of 6 years. 3.12 Inventories
Inventories are stated at the lower of cost and net
3.11 Impairment of tangible and intangible assets realisable value. Cost of inventories includes expenditure
incurred in acquiring the inventories, production or
At the end of each reporting period, the Company reviews
the carrying amounts of its tangible and intangible assets conversion costs and other costs incurred in bringing
to determine whether there is any indication that those them to their present location and condition. Costs
assets have suffered an impairment loss. If any such of inventories are determined on a moving weighted
indication exists, the recoverable amount of the asset average. Finished goods and work-in-progress include
appropriate proportion of overheads. Net realisable value
is estimated in order to determine the extent of the
impairment loss (if any).Recoverable amount is the higher represents the estimated selling price for inventories less
of fair value less costs of disposal and value in use. all estimated costs of completion and costs necessary to
make the sale.
Intangible assets with indefinite useful lives and
intangible assets not yet available for use are tested for 3.13 Provisions
impairment at least annually, and whenever there is an Provisions are recognised when the Company has a
indication that the asset may be impaired. In assessing present obligation (legal or constructive) as a result of
value in use, the estimated future cash flows are a past event, it is probable that the Company will be
discounted to their present value using a pre-tax discount required to settle the obligation, and a reliable estimate
rate that reflects current market assessments of the can be made of the amount of the obligation.
time value of money and the risks specific to the asset
for which the estimates of future cash flows have not The amount recognised as a provision is the best
been adjusted. estimate of the consideration required to settle
the present obligation at the end of the reporting
For impairment testing, assets that don’t generate period, taking into account the risks and uncertainties
independent cash flows are grouped together into surrounding the obligation. When a provision is measured
cash generating units (CGU’s). Each CGU represents the using the cash flows estimated to settle the present
smallest group of assets that generate cash inflows obligation, its carrying amount is the present value of
that are largely independent of the cash inflows of other those cash flows (when the effect of the time value of
assets or CGU’s. money is material).


Warranties
The estimated liability for product warranties is recorded • the asset is held within a business model whose
when products are sold. These estimates are established objective is achieved both by collecting contractual
using historical information on the nature, frequency, cash flows and selling financial assets; and
average cost of warranty claims and management • the contractual terms of the instrument give rise
estimates regarding possible future incidence based on specified dates to cash flows that are solely
on corrective actions on product failures. The timing payments of principal and interest on the principal
of outflows will vary as and when warranty claim will amount outstanding.
arise- being typically two to five years.
Interest income is recognised in the Statement of profit
3.14 Financial instruments and loss for FVTOCI debt instruments.
Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual All other financial assets are subsequently measured at
provisions of the instruments. fair value.
Financial assets and financial liabilities are initially Effective interest method
measured at fair value. Transaction costs that are directly The effective interest method is a method of calculating
attributable to the acquisition or issue of financial assets the amortised cost of a debt instrument and of allocating
and financial liabilities (other than financial assets and interest income over the relevant period. The effective
financial liabilities at fair value through the Statement interest rate is the rate that exactly discounts estimated
of profit and loss) are added to or deducted from the future cash receipts (including all fees and points paid
fair value of the financial assets or financial liabilities, or received that form an integral part of the effective
as appropriate, on initial recognition. Transaction costs interest rate, transaction costs and other premiums
directly attributable to the acquisition of financial assets or discounts) through the expected life of the debt
or financial liabilities at fair value through the Statement instrument, or, where appropriate, a shorter period,
of profit and loss are recognised immediately in the to the net carrying amount on initial recognition.
Statement of profit and loss.
Income is recognised on an effective interest basis for
3.15 Financial assets debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognised in
All recognised financial assets are subsequently
measured in their entirety at either amortised cost the Statement of profit and loss and is included in the
or fair value, depending on the classification of the “Other income” line item.
financial assets.
Financial assets at fair value through the Statement of
Classification of financial assets profit and loss (FVTPL)
Debt instruments that meet the following conditions Investments in equity instruments are classified as at
are subsequently measured at amortised cost (except FVTPL, unless the Company irrevocably elects on initial
for debt instruments that are designated as at fair recognition to present subsequent changes in fair value
value through the Statement of profit and loss on initial in other comprehensive income for investments in equity
recognition): instruments which are not held for trading.
• the asset is held within a business model whose Debt instruments that do not meet the amortised cost
objective is to hold assets in order to collect criteria or FVTOCI criteria are measured at FVTPL. In
contractual cash flows; and addition, debt instruments that meet the amortised cost
criteria or the FVTOCI criteria but are designated as at
• the contractual terms of the instrument give rise FVTPL are measured at FVTPL.
on specified dates to cash flows that are solely
payments of principal and interest on the principal A financial asset that meets the amortised cost criteria
amount outstanding. or debt instruments that meet the FVTOCI criteria may
be designated as at FVTPL upon initial recognition if
Debt instruments that meet the following conditions such designation eliminates or significantly reduces a
are subsequently measured at fair value through other measurement or recognition inconsistency that would
comprehensive income (“FVTOCI”) (except for debt arise from measuring assets or liabilities or recognising
instruments that are designated as at fair value through the gains and losses on them on different bases. The
the Statement of profit and loss on initial recognition): Company has not designated any debt instrument as
at FVTPL.
18
Financial assets at FVTPL are measured at fair value at

the end of each reporting period, with any gains or losses Financial liabilities
arising on re-measurement recognised in the Statement Financial liabilities that are not held-for-trading and
of profit and loss. The net gain or loss recognised in the are not designated as at FVTPL are measured at
Statement of profit and loss incorporates any dividend or amortised cost at the end of subsequent accounting
interest earned on the financial asset and is included in periods. The carrying amounts of financial liabilities
the ‘Other income’ line item. Dividend on financial assets that are subsequently measured at amortised cost are
at FVTPL is recognised when the company’s right to determined based on the effective interest method.
receive the dividends is established, it is probable that the Interest expense that is not capitalised as part of costs
economic benefits associated with the dividend will flow of an asset is included under ‘Finance costs’.
to the entity, the dividend does not represent a recovery
of part of cost of the investment and the amount of The effective interest method is a method of calculating
dividend can be measured reliably. the amortised cost of a financial liability and of
allocating interest expense over the relevant period.
Investments in subsidiaries and associates The effective interest rate is the rate that exactly
Investment in subsidiaries and associates are carried at discounts estimated future cash payments (including all
cost in the standalone financial statements. fees and points paid or received that form an integral
part of the effective interest rate, transaction costs and
Impairment of financial assets other premiums or discounts) through the expected life
The Company applies the expected credit loss for of the financial liability.
recognising impairment loss on financial assets measured
at amortised cost, debt instruments at FVTOCI, trade All financial liabilities are subsequently measured at
receivables, other contractual rights to receive cash amortised cost using the effective interest method or
at FVTPL.
or other financial asset, and financial guarantees not
designated as at FVTPL.
Derecognition of financial liabilities
The Company determines the allowance for credit losses The Company derecognises financial liabilities when, and
based on historical loss experience adjusted to reflect only when, the Company’s obligations are discharged,
current and estimated future economic conditions. cancelled or have expired.
Offsetting 3.17 Derivative financial instruments

Financial assets and financial liabilities are offset and The Company enters into a variety of derivative financial
the net amount presented in the balance sheet when, instruments to manage its exposure to foreign exchange
and only when, the Company currently has a legally rate risks, including foreign exchange forward contracts,
enforceable right to set off the amounts and it intents option contracts, etc.
either to settle them on net basis or to realise the assets
and settle the liabilities simultaneously. Foreign currency derivatives are initially recognised at
fair value at the date the derivative contracts are entered
Derecognition of financial assets into and are subsequently re-measured to their fair
The Company derecognises a financial asset when the value at the end of each reporting period. The resulting
contractual rights to the cash flows from the asset expire, gain or loss is recognised in the Statement of profit and
or when it transfers the financial asset and substantially loss immediately unless the derivative is designated and
all the risks and rewards of ownership of the asset to effective as a hedging instrument, in which event the
another party. timing of the recognition in the Statement of profit and
loss depends on the nature of the hedging relationship
3.16 Financial liabilities and equity instruments and the nature of the hedged item.
Classification as debt or equity
Debt and equity instruments issued by Company are 3.18 Cash flow statement
classified as either financial liabilities or as equity in Cash flows are reported using the indirect method,
accordance with the substance of the contractual whereby profit / (loss) before extraordinary items and tax
arrangements and the definitions of a financial liability is adjusted for the effects of transactions of non-cash
and an equity instrument. nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating,
Equity instruments investing and financing activities of the Company are
An equity instrument is any contract that evidences segregated based on the available information.
a residual interest in the assets of an entity after
deducting all of its liabilities.


3.19 Earnings per share

Basic earnings per share is computed by dividing the
4. CRITICAL ACCOUNTING
profit after tax by the weighted average number of JUDGEMENTS AND KEY SOURCES OF
equity shares outstanding during the year/period.
ESTIMATION UNCERTAINTY
Diluted earnings per share is computed by dividing the In the application of the Company accounting policies,
profit after tax as adjusted for dividend, interest and which are described in note 3, the management of the
other charges to expense or income relating to the Company are required to make judgements, estimates
dilutive potential equity shares, by the weighted average and assumptions about the carrying amounts of assets
number of equity shares considered for deriving basic and liabilities that are not readily apparent from other
earnings per share and the weighted average number sources. The estimates and associated assumptions are
of equity shares which could have been issued on the based on historical experience and other factors that are
conversion of all dilutive potential equity shares. considered to be relevant. Actual results may differ from
these estimates.
3.20 Contingent liabilities and contingent assets
The estimates and underlying assumptions are reviewed
A contingent liability exists when there is a possible but on an ongoing basis. Revisions to accounting estimates
not probable obligation, or a present obligation that may,
are recognised prospectively.
but probably will not, require an outflow of resources, or
a present obligation whose amount cannot be estimated
reliably. Contingent liabilities do not warrant provisions, The following are the areas of estimation uncertainty and
critical judgements that the management has made in
but are disclosed unless the possibility of outflow of
the process of applying the Company’s accounting policies
resources is remote. Contingent assets are neither
and that have the most significant effect on the amounts
recognised nor disclosed in the standalone financial
recognised in the standalone financial statements:-
statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of
(a) Recoverability of intangible asset
economic benefits will arise, the asset and related income
are recognised in the period in which the change occurs. Capitalisation of cost in intangible assets under
development is based on management’s judgement
3.21 Standards issued but not yet effective that technological and economic feasibility is confirmed
and asset under development will generate economic
On March 23, 2022, the Ministry of Corporate Affairs benefits in future. Based on evaluations carried out, the
(MCA) issued certain amendments and annual
Company’s management has determined that there
improvements to Ind AS. These amendments are
applicable for accounting periods beginning on or are no factors which indicates that these assets have
suffered any impairment loss.
after April 1, 2022:
(b) Defined benefit plans
– Ind AS 103 – Business Combinations –
Reference to conceptual framework added The cost of the defined benefit plan and other post-
employment benefits and the present value of such
– Ind AS 16 – Property, Plant and Equipment obligation are determined using actuarial valuations. An
– Accounting for proceeds before an asset’s actuarial valuation involves making various assumptions
intended use that may differ from actual developments in the future.
These include the determination of the discount rate,
– Ind AS 37 – Provisions, Contingent Liabilities and future salary increases, mortality rates and future
Contingent Assets – Assessing if the contract pension increases. Due to the complexities involved in
is onerous the valuation and its long-term nature, a defined benefit
obligation is sensitive to changes in these assumptions.
– Annual improvements to Ind AS – Ind AS 109 All assumptions are reviewed at each reporting date.
(Financial Instruments) and Ind AS 116 (Leases).
(c) Provision and contingent liability
The Company will evaluate the impact of the above, On an ongoing basis, Company reviews pending cases,
where applicable, on the financial statements and give claims by third parties and other contingencies. For
impact of the same in the relevant period contingent losses that are considered probable, an
estimated loss is recorded as an accrual in financial
19
statements. Contingent loss that are considered possible

are not provided for but disclosed as Contingent liabilities carried at cost for impairment testing. Some of these
in the financial statements. Contingencies the likelihood companies are start-ups or are at early stage of their
of which is remote are not disclosed in the financial operations and are expected to generate positive cash
statements. Contingent gain are not recognized until flows in the future years. Detailed analysis has been
carried out on the future projections and the Company
the contingency has been resolved and amounts are
received or receivable. is confident that the investments do not require
any impairment.
(d) Useful lives of depreciable assets
(f) Government grant
Management reviews the useful lives of depreciable
assets at each reporting date. As at March 31, 2022 During the year, management has assessed the
management assessed that the useful lives represent conditions attached to grants which have been met and
the expected utility of the assets to the Company. has assessed whether the grants will be received or not.
Basis assessment, the Company has recognised the
Further, there is no significant change in the useful
lives as compared to previous year. government grants in the Statement of profit and loss.
(e) Impairment of investment in equity (g) Investment in compulsory convertible

instruments of subsidiary and associate debentures
companies The classification of compulsory convertible debentures,
as equity or debt instrument, is based on management’s
During the year, the Company assessed the investment in
equity instrument of subsidiary and associate companies judgement and evaluation of applicable criteria.
5. PROPERTY, PLANT AND EQUIPMENT

As at March 31, 2022
Particulars Furniture Data

Freehold Plant and Office
Buildings and Vehicles processing Total
land equipment equipment
fixtures equipment
Cost
Opening Balance 164.72 2,866.19 6,267.42 53.81 53.66 84.72 246.01 9,736.53
Additions - 83.53 261.78 3.17 8.12 11.24 31.09 398.93
11.32 - 102.19 0.25 11.18 0.62 21.29 146.85
Disposals
Closing Balance 153.40 2,949.72 6,427.01 56.73 50.60 95.34 255.81 9,988.61
Accumulated depreciation
- 524.05 3,617.79 27.73 35.12 56.02 182.42 4,443.13
Opening Balance
- 85.55 450.05 4.45 4.60 10.40 22.61 577.66
Depreciation expense
- - 95.52 0.22 10.03 0.58 20.22 126.57
Adjustments
- 609.60 3,972.32 31.96 29.69 65.84 184.81 4,894.22
Closing Balance
153.40 2,340.12 2,454.69 24.77 20.91 29.50 71.00 5,094.39
Net Block

Particulars Furniture Data
Buildings and Vehicles processing Total
land equipment equipment
fixtures equipment
Cost
Opening Balance 164.72 2,808.13 6,107.86 52.67 57.03 76.25 231.38 9,498.04
Additions - 58.19 239.82 2.30 6.16 8.76 20.65 335.88
Disposals - 0.13 80.26 1.16 9.53 0.29 6.02 97.39
Closing Balance 164.72 2,866.19 6,267.42 53.81 53.66 84.72 246.01 9,736.53
- 436.48 3,228.08 24.03 38.55 44.27 164.21 3,935.62
Opening Balance
- 87.62 464.18 4.47 4.42 12.01 23.92 596.62
Depreciation expense
- 0.05 74.47 0.77 7.85 0.26 5.71 89.11
Adjustments - 524.05 3,617.79 27.73 35.12 56.02 182.42 4,443.13
Closing Balance 164.72 2,342.14 2,649.63 26.08 18.54 28.70 63.59 5,293.40
Net Block



(CONTD..)
Note:- The title deeds of immovable properties are held in the name of the Company as at the balance sheet date except for following two, which are yet
to be registered in the name of the Company.
Gross carrying Whether promoter, Reason for not being held in
Description of property value Held in
the name of
director or their Period held- indicate range,
where appropriate
the name of the Company.
relative or employee Also indicate if in dispute
(Rs. in crores)
Apartment 1, Gurugram 18.94 Registration to Not applicable Since December 2020 till Registration to be applied for
be applied for date of audit report
Apartment 2, Gurugram 18.94 Registration to Not applicable Since December 2020 till Registration to be applied for
be applied for date of audit report
6. CAPITAL WORK-IN-PROGRESS*
As at As at
Particulars
March 31, 2022 March 31, 2021
Capital work-in-progress 87.32 177.86
87.32 177.86
Ageing of capital work in progress :

Amount in Capital Work in Progress for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress as at March 31, 2022 68.97 5.45 6.50 6.40 87.32
Projects in progress as at March 31, 2021 61.57 39.05 77.10 0.14 177.86
*Project execution plans are modulated basis capacity requirement assessment on an annual basis and all the projects are executed as per rolling
annual plan.
7. OTHER INTANGIBLE ASSETS

Particulars Model fee/Brand Technical know-

Computer
license/Product designs how/export Total
softwares
and development licenses
Cost
Opening Balance 1,012.83 186.40 2,895.67 4,094.90
Additions 36.68 13.94 - 50.62
Disposals - (0.01) - (0.01)
Closing Balance 1,049.51 200.33 2,895.67 4,145.51
Accumulated amortisation
Opening Balance 783.04 125.93 2,895.67 3,804.64
Amortisation expense 25.26 17.12 - 42.38
Adjustments - (0.01) - (0.01)
Closing Balance 808.30 143.04 2,895.67 3,847.01
Net Block 241.21 57.29 - 298.50

Particulars Model fee/Brand Technical know-
Computer
license/Product designs how/export Total
softwares
and development licenses
Cost
Opening Balance 849.76 158.09 2,895.67 3,903.52
Additions 163.07 28.31 - 191.38
Closing Balance 1,012.83 186.40 2,895.67 4,094.90
757.95 109.81 2,895.67 3,763.43
Opening Balance
25.09 16.12 - 41.21
Amortisation expense
783.04 125.93 2,895.67 3,804.64
Closing Balance
229.79 60.47 - 290.26
19
Net Block

7. OTHER INTANGIBLE ASSETS (CONTD..)

7A. Right of use assets
Particulars
Leasehold land right Right of Use of asset Total
Cost
Right of use assets as on April 01, 2021 277.25 215.80 493.05
Additions - 38.55 38.55
Closing Balance 277.25 254.35 531.60
6.61 81.69 88.30
Opening Balance
3.17 26.54 29.71
Amortisation expense during the year
9.78 108.23 118.01
Closing Balance
267.47 146.12 413.59
Net Block

Particulars
Leasehold land right Right of Use of asset Total
Cost
Right of use assets as on April 01, 2020 277.25 186.58 463.83
Additions - 29.22 29.22
Closing Balance 277.25 215.80 493.05
Opening Balance 3.44 45.82 49.26
Amortisation expense during the year 3.17 35.87 39.04
Closing Balance 6.61 81.69 88.30
Net Block 270.64 134.11 404.75
The following is the break-up of current and non-current lease liabilities :

As at As at
Particulars
March 31, 2022 March 31, 2021
Current lease liabilities 25.75 19.70
Non-current lease liabilities 142.32 129.81
Total 168.07 149.51
The following is the movement in lease liabilities :

As at As at
Particulars
March 31, 2022 March 31, 2021
Opening balance 149.51 149.96
Additions 38.54 29.22
Finance cost accrued during the year 12.66 11.63
Payment of lease liabilities accrued during the year (32.64) (41.30)
Total 168.07 149.51
The table below provides details regarding the contractual maturities of lease liabilities on an
undiscounted basis:
As at As at
Particulars
March 31, 2022 March 31, 2021
Less than one year 34.16 29.48
One to five years 121.49 104.41
More than five years 64.29 80.18
Total 219.94 214.07
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to
meet the obligations related to lease liabilities as and when they fall due.
Rental expenses recorded for short-term leases is Rs. 35.63 crores during year ended March 31, 2022 (March 31, 2021:
Rs. 32.89 crores).
19

8. INTANGIBLE ASSETS UNDER DEVELOPMENT**

As at
As at
Particulars March 31, 2021
March 31, 2022
Intangible assets under development 258.73
370.88
Total 258.73
370.88
Ageing of intangible assets under development :
Amount in intangible assets under development for a period of

Intangible assets under development Total
Projects in progress as on March 31, 2022 140.03 93.45 83.22 54.18 370.88
**Project execution plans are modulated basis capacity requirement assessment on an annual basis and all the projects are executed as per rolling
annual plan.
9. INVESTMENTS
Units as at Units as at As at March 31, 2022 As at March 31, 2021
Particulars March 31, March 31, Non Non
2022 2021 Current Current
Current Current
Category-wise investments
Investment in equity instruments - 1,875.09 - 1,859.22
Investment in preference shares - 504.38 - 504.38
Investment in debentures/bonds 51.05 1,119.51 54.55 610.49
5,786.61 1,315.68 6,136.94 1,334.09
Investment in mutual funds
5,837.66 4,814.66 6,191.49 4,308.18
Investment in equity instruments carried at cost
Unquoted Investments
Investment in subsidiaries
Hero Tech Centre Germany GMBH (Face Value of EUR 1 each) - 19.57 - 19.57
2,525,000 2,525,000
HMCL Netherlands B.V (Face Value of USD 1 each) - 296.19 - 296.19
45,205,685 45,205,685
HMCL Americas INC (Face Value of USD 1,000 each) - 22.22 - 22.22
3,500 3,500
HMC MM Auto Limited (Face Value of Rs. 10 each) - 48.00 - 48.00
47,999,993 47,999,993
- 385.98 - 385.98
Investment in Associates
Ather Energy Private Limited
Equity shares Face Value of Rs. 1 each - 0.20 - 0.20
1,098 100
Preference shares of Face Value of Rs 10 each - 330.38 - 330.38
(Compulsorily convertible in equity instruments) 128,533 128,533
Preference shares Series C 1 of Face Value of Rs. 10 each 20,688 20,688 - 84.00 - 84.00
(Convertible into equity instruments)
Preference shares Series D 1 of Face Value of Rs. 10 each 30,475 30,475 - 90.00 - 90.00
(Convertible into equity instruments)
Hero FinCorp Limited
Equity shares of Face Value of Rs. 10 each, fully paid up 52,431,893 52,431,893 - 1,469.03 - 1,469.03
- 1,973.61 - 1,973.61
Quoted Investments
Investments carried at fair value through profit or loss (FVTPL)
Investment in equity instruments of Other Entities
Bombay Stock Exchange Limited
Face Value of Rs. 2 each 210,600 70,200 - 19.88 - 4.01
- 19.88 - 4.01

9. INVESTMENTS (CONTD..)
Current Current
Investment in bonds/debentures
Compulsorily convertible debentures at the face value of Rs. 100 each 30,658 - - 150.00 - -
- 150.00 - -
Quoted Investments
Investments carried at amortised cost
Face Value of Rs. 1,000 each
7.34% HUDCO - Maturity - February 16, 2023 25.22 - - 25.22
250,000 250,000
7.18% IRFC - Maturity - February 19, 2023 25.83 - - 25.83
250,000 250,000
8.18% NHPC Tax Free Bonds - Maturity - November 02, 2023 - 17.42 - 17.42
161,050 161,050
8.51% HUDCO Tax Free Bonds - Maturity - January 13, 2024 - 25.45 - 25.45
250,000 250,000
8.18% PFC Tax Free Bonds - Maturity - November 16, 2023 - 33.38 - 33.38
323,890 323,890
9.10% Shriram Transport Finance Company Limited TR-I SR - III 9.1 - - 25.77 -
- 250,000
NCD - Maturity - July 12, 2021
Face Value of Rs. 1,000,000 each
8.1082% HDB Financial Services - Maturity - June 04, 2021 - 250 - - 28.78 -
SBI Series II 8.50 BD Perpetual - Maturity - November 22, 2024 250 250 - 25.87 - 25.92
Bank of Baroda Series XV 8.15 BD Perpetual - Maturity - January 13, 250 250 - 25.53 - 25.56
2026
LIC Housing Finance Ltd. 386 7.99 NCD - Maturity - July 12, 2029 500 500 - 54.69 - 54.88
Housing Development Finance Corporation Ltd. Series Y-005 6.83 500 500 - 49.25 - 49.13
NCD - Maturity - January 08, 2031
Food Corporation of India Series Ix 6.65 LOA - Maturity - October 23, 500 500 - 49.69 - 49.55
2030
REC Limited Series 189 7.92 BD - Maturity - March 31, 2030 350 350 - 36.16 - 36.27
REC Limited Series 198B 7.79 BD - Maturity - May 21, 2030 150 150 - 16.45 - 16.49
National Bank Of Agriculture And Rural Development Series PMAY G 250 250 - 24.61 - 24.53
Pdi 6.39 LOA - Maturity - November 19, 2030
National Bank For Agriculture And Rural Development Series PMAY G 200 200 - 19.71 - 19.65
Pd2 6.42 LOA - Maturity - November 25, 2030
Shriram Transport Finance Company Limited Series PPMLY 02 BR 250 250 - 27.20 - 25.19
BCD - Maturity - April 27, 2023
Housing Development Finance Corporation Limited Series X-006 500 500 - 52.87 - 52.88
7.25 Ncd - Maturity - June 17, 2030
National Highways Authority Of India Series Viii 7.54 Bd - Maturity - 500 500 - 51.82 - 51.93
January 27, 2030
Muthoot Fincorp Limited Series VIII BR NCD - Maturity - March 22, 250 250 - 27.28 - 25.09
2023
LIC Housing Finance Limited 7.05 LOA 21DC30 FVRS 10Lac - 250 - - 25.45 - -
INE115A08369 - 250 - Maturity - December 21, 2030
Lic Housing Finance Limited Sr 2 7.70 LOA 19Mr31 Fvrs10Lac - 250 - - 26.08 - -
Ine115A08377- Maturity - March 19, 2031
Housing Development Finance Corporation Ltd Sr Aa 01 7.05 LOA 500 - - 51.13 - -
01Dc31 Fvrs10Lac - Ine001A07Tg4 - Maturity - December 01, 2031
Food Corporation of India SR X 7.09 BD 13AG31 FVRS10LAC- 250 - - 26.32 - -
INE861G08084 - Maturity - August 13, 2031


Current Current
Food Corporation Of India SR X 7.09 BD 13AG31 FVRS10LAC - 250 - - 26.32 - -
Tata Capital Financial Services Limited SR H 7.10 NCD 29SP31 500 - - 51.43 - -
FVRS10LAC - INE306N07MN1 - Maturity - September 29, 2031
Housing Development Finance Corporation Ltd SR AA 01 7.05 LOA 500 - - 50.37 - -
01DC31 FVRS10LAC-INE001A07TG4-Maturity-01.12.31
Housing Development Finance Corporation LTD SR AA 01 7.05 LOA 250 - - 25.10 - -
01DC31 FVRS10LAC-INE001A07TG4 - Maturity - December 01,
2031
Power Finance Corporation Ltd SR 197 7.41 BD 15MY30 FVRS10LAC 150 - - 15.33 - -
- INE134E08KM0 - 150 - Maturity - May 15, 2030
REC LIMITED SERIES 198B 7.79 BD 21MY30 FVRS10LAC - 100 - - 11.06 - -
INE020B08CW3-100 - Maturity - May 21, 2030
REC LIMITED SR 203A 6.80 BD 20DC30 FVRS10LAC - 200 - - 19.92 - -
INE020B08DE9-200 - Maturity - December 20, 2030
Food Corporation Of India SR X 7.09 BD 13AG31 FVRS10LAC- 250 - - 25.83 - -
51.05 969.51 54.55 610.49
{include funds which are listed but not quoted}
Debt funds
Units of the face value of Rs. 10 each
ICICI Prudential Mutual Fund
FMP - Series 82 - 1199 Days Plan L Direct Plan Cumulative - - 88.48 -
- 70,000,000
- - 62.67 -
FMP - Series 82 - 1135 Days Plan U Direct Plan Cumulative - 50,000,000
- - 62.94 -
FMP Series 83 -1105 Days Plan F Direct Plan Cumulative - 50,000,000
Blended Plan B- Direct Plan- Growth Option 32,595,446 87.75 - 83.50 -
32,595,446
(Merged with Banking and PSU Debt Fund Direct Plan Growth)
Short Term Fund - Direct Plan - Growth Option - 45,067,080 - - 219.11 -
Corporate Bond Fund - Direct Plan - Growth 15,805,811 61,271,259 38.86 - 144.03 -
Credit Risk Fund - Direct Plan - Growth 38,904,433 19,905,885 105.63 - 50.32 -
Aditya Birla Sunlife Mutual Fund
Fixed Term Plan - Series PB (1190 days) - Direct Growth - 90,000,000 - - 113.64 -
Fixed Term Plan - Series PZ (1120 days) - Direct Growth - 35,000,000 - - 43.65 -
Fixed Term Plan - Series QB (1113 days) - Direct Growth - 50,000,000 - - 62.89 -
Fixed Term Plan - Series RC (1295 days) - Direct Growth 50,000,000 50,000,000 65.31 - - 62.81
Short Term Fund - Growth - Direct Plan - 19,685,918 - - 75.70 -
Nippon India Mutual Fund (Formerly Reliance Mutual Fund)
Fixed Horizon Fund - XXXVII-Series 10 - Direct Growth Plan - 25,000,000 - - 31.69 -
- - 156.48 -
Short-term - Direct Growth Plan Growth Option - 36,347,075
178.20 - - -
Credit Risk Fund - Direct Growth Plan Growth Option 59,725,194 -
Invesco Mutual Fund (Formerly Religare Invesco Mutual Fund)
FMP-Sr.33-Plan D (1273 Days) - Direct Sub Plan Growth 20,000,000 20,000,000 26.08 - - 24.99
19
Current Current
SBI Mutual Fund
Savings Fund - Direct - Growth 70,345,757 43,898,670 250.16 - 150.12 -
Conservative Hybrid Fund Direct Plan Growth 4,382,290 - 25.06 - - -
IDFC Mutual Fund
- - 62.92 -
Fixed Term Plan Series 140 Direct Plan - Growth (1145 Days) - 50,000,000
- - 62.64 -
Fixed Term Plan Series 144 Direct Plan - Growth (1141Days) - 50,000,000
58.40 - 55.94 -
Banking & PSU Debt Fund - Direct Plan - Growth 28,629,997 28,629,997
- - 54.84 -
Credit Risk Fund - Direct Plan - Growth - 40,448,820
Kotak Mutual Fund
- - 94.30 -
FMP Series 219 Direct - Growth - 75,000,000
- - 59.96 -
- - 63.28 -
156.70 - 27.28 -
Credit Risk Fund - Direct Plan - Growth 58,219,209 10,839,356
HDFC Mutual Fund
- - 94.21 -
FMP 1143 D March 2018(1) - Direct - Growth - Series - 39 - 75,000,000
- - 62.67 -
55.47 - 264.84 -
Low Duration Fund - Direct Plan - Growth Option 11,141,341 55,666,963
- - 53.18 -
Banking & PSU Debt Fund - Direct Growth Option - 29,139,567 207.54 - 74.35 -
Credit Risk Debt Fund - Direct - Growth 100,633,738 38,776,839
Axis Mutal Fund
54.31 - 103.75 -
Short Term - Direct Plan - Growth 20,355,074 40,842,187
-
DSP Mutual Fund 17.11 - 16.45 -
Low Duration Fund - Direct Plan - Growth 10,395,299 10,395,299
ICICI Prudential Mutual Fund 225.66 - 320.94 -
Savings Fund - Direct Plan - Growth Option 5,155,314 7,647,092 150.08 - - -
Money Market Fund Direct Plan Growth 4,890,393 - -
Aditya Birla Sunlife Mutual Fund 252.37 - 240.89 -
Low Duration Fund - Growth - Direct Plan 4,363,469 4,363,469 - - 50.14 -
Banking & PSU - Direct Plan - Growth - 1,730,722 170.91 - 117.79 -
Money Manager Fund - Growth - Direct Plan 5,717,703 4,101,753
Units of the face value of Rs. 1,000 each
Nippon India Mutual Fund (Formerly Reliance Mutual Fund) 54.55 - 155.97 -
Low Duration Fund - Direct Growth Plan Growth Option 172,138 516,415 250.14 - 150.04 -
Money Market Fund Direct Plan Growth 746,566 465,847
Invesco Mutual Fund (Formerly Religare Invesco Mutual Fund) 198.19 - 189.58 -
Short Term Fund - Direct Plan Growth 626,087 626,087 188.17 - 181.16 -
Ultra Short Term Fund - Direct Plan Growth 815,166 815,166
(Formerly Medium Term Bond Fund - Direct Plan Growth)
Corporate Bond Fund - Direct Plan Growth 139,843 502,311 38.25 - 131.35 -
Kotak Mutual Fund
Corporate Bond Fund Direct Growth 148,253 148,253 46.45 - 44.25 -
Low Duration Fund Direct Growth 380,566 947,500 110.43 - 262.80 -
Money Market Fund - Direct Plan - Growth 773,516 627,223 280.07 - 218.51 -
Axis Mutal Fund
Banking & PSU Debt Fund - Direct Growth 449,207 449,207 98.24 - 94.23 -
HDFC Mutual Fund
Money Market Fund Direct Plan Growth - 779,189 - - 348.60 -
UTI Mutual Fund
Money Market Fund Direct Plan Growth 1,610,258 1,112,782 401.08 - 266.53 -


Current Current
Edelweiss Mutual Fund
Edelweiss Mutual Bharat Bond ETF 3,000,000 3,000,000 - 351.13 - 335.08
Edelweiss Mutual Bharat Bond ETF 8,896,795 8,896,795 - 964.55 - 911.21
Equity fund
Arbitrage Fund - Direct Growth Plan Growth Option 138,819,753 121,555,798 316.90 - 265.32 -
Aditya Birla Sun Life Arbitage Fund - Growth - Direct Plan (Formerly 113,338,345 46,073,214 257.89 - 100.35 -
known as Aditya Birla Sun Life Enhanced Arbitrage Fund)
Arbitrage Fund - Direct Plan Growth 213,572,159 127,606,360 352.04 - 200.95 -
Kotak Mutual Fund
Equity Arbitrage Fund - Direct Plan - Growth 49,065,078 66,373,737 155.38 - 200.99 -
HDFC Mutual Fund
Arbitrage Fund - Direct Plan - Growth - 32,520,325 - - 50.18 -
UTI Mutual Fund
Arbitrage Fund Direct Growth Plan Growth 69,117,262 - 205.43 - - -
Tata Mutual Fund
Arbitrage Fund - Direct Plan - Growth 171,452,455 - 205.49 - - -
Axis Mutal Fund
Arbitrage Fund - Direct Growth 94,059,220 - 152.25 - - -
Liquid/Overnight fund
ICICI Prudential Mutual Fund
100.01 - - -
Overnight Fund Direct plan Growth 8,726,308 -
Nippon India Mutual Fund
100.04 - - -
Aditya Birla Sunlife Mutual Fund 60.01 - - -
Overnight Fund Direct plan Growth 521,932
Kotak Mutual Fund 90.00 - - -
Overnight Fund - Direct Plan - Growth 793,871 - 5,786.61 1,315.68 6,136.94 1,334.09
Investment in mutual funds 5,837.66 4,814.66 6,191.49 4,308.18
Total Investments
19
Current Non Current Current Non Current
Aggregate book value of quoted investments 51.05 989.39 54.55 614.50
Aggregate market value of quoted investments 52.84 986.83 55.59 614.74
Aggregate carrying value of unquoted investments 5,786.61 3,825.27 6,136.94 3,693.68
Aggregate amount of impairment in value of investments - - - -
Category-wise investment as per Ind AS 109 classification

Financial assets carried at fair value through profit or loss
(FVTPL)
Unquoted
Investment in Mutual Funds 5,786.61 1,315.68 6,136.94 1,334.09
- 150.00 - -
Investment in debentures
Quoted
Investment in equity instruments - 19.88 - 4.01
Financial assets carried at amortised cost
Quoted
51.05 969.51 54.55 610.49
Investment in bonds
Note: The above does not include investments in subsidiaries and associates amounting to Rs. 2,359.59 crores (as at March 31,2022) and
Rs. 2,359.59 crores (as at March 31, 2021) carried at cost.
Information about the Company’s exposure to credit and market risks, and fair value measurement, is included in Note 41.
10. LOANS
As at As at
Particulars
March 31, 2022 March 31, 2021
NON - CURRENT
Unsecured, considered good
Loans to employees 17.43 16.73
Total 17.43 16.73
CURRENT
Total 22.81 22.95
Note :- These financial assets are carried at amortised cost unless otherwise stated.
Note :- The Company’s exposure to credit and currency risks, and impairment allowances related to Loans (Financial assets) is disclosed in Note 41.


11. OTHER FINANCIAL ASSETS

As at As at
Particulars
March 31, 2022 March 31, 2021
NON-CURRENT
Security deposits 41.60 35.50
Total 41.60 35.50
CURRENT
Interest accrued on deposits and others 34.60 3.90
Accrual of incentives from State Government 395.13 344.45
Other recoverables 22.46 9.18
Total 454.80 371.52
Note :- These financial assets are carried at amortised cost unless otherwise stated.
Note :- The Company’s exposure to credit and currency risks, and impairment allowances related to Other financial assets is disclosed in Note 41.
12. INCOME TAX ASSETS (NET)

As at As at
Particulars
March 31, 2022 March 31, 2021
TAX ASSETS
Advance income tax 1,137.00 1,286.03
Less : Provision for taxation 796.08 917.84
Total 340.92 368.19
13. OTHER ASSETS

As at As at
Particulars
March 31, 2022 March 31, 2021
NON-CURRENT
Capital advances 87.77 27.33
Prepaid expenses 9.89 6.18
Balance with government authorities
- Excise duty and others 12.85 12.17
- VAT/ sales tax 9.26 8.98
Total 119.77 54.66
CURRENT
Advance to suppliers 125.89 107.01
Less: Loss allowance (59.24) (7.00)
66.65 100.01
Other advances 2.69 0.02
- VAT/Sales tax and others
20.89 21.12
- Goods and service tax (GST)
0.59 28.12
- Export incentive receivable
Total 37.19 17.34
197.65 213.37
20
14. INVENTORIES
(lower of cost and net realisable value)
As at As at
Particulars
March 31, 2022 March 31, 2021
Raw materials and components 545.55 740.20
Goods in transit of raw materials and components 27.90 108.00
Work-in-progress (Two wheelers) 36.82 46.90
Finished goods
Two Wheelers 317.86 370.35
Spare parts 56.19 54.36
Stock in trade 11.84 23.82
Stores and spares 102.95 98.88
Loose tools 23.54 27.04
Total 1,122.65 1,469.55
The mode of valuation of inventories has been stated in note no. 3.12.
15. TRADE RECEIVABLES

As at As at
Particulars
March 31, 2022 March 31, 2021
Current
Trade Receivables considered good - (Secured) ** 37.50 54.81
Trade Receivables considered good - (Unsecured) ** 2,266.77 2,371.95
Trade Receivables credit impaired 116.86 117.05
2,421.13 2,543.81
Less: Allowance for expected credit loss 116.86 117.05
Total 2,304.27 2,426.76
The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.
The carrying amount of trade receivables approximates their fair value. The Company’s exposure to credit and currency risks, and
impairment allowances related to trade receivables is disclosed in Note 41.
Trade receivables ageing as on March 31, 2022:

Outstanding from due date of payment
Particulars Less than 6 months More than
Not due 1-2 years 2-3 years Total
6 months - 1 year 3 years
Undisputed Trade Receivables - considered good 1,241.53 1,053.08 7.13 2.07 0.10 0.36 2,304.27
Undisputed Trade Receivables - credit impaired 1.80 22.81 1.67 8.29 18.40 24.87 77.84
Disputed Trade Receivables - credit impaired - 0.82 0.29 1.32 17.20 19.39 39.02

Undisputed Trade Receivables - considered good 1,539.55 885.39 1.39 0.11 0.02 0.30 2,426.76
** Include receivables from related parties (refer note 36)


16. CASH AND CASH EQUIVALENTS

As at As at
Particulars
March 31, 2022 March 31, 2021
Cash on hand 0.01 0.01
Balances with banks
In current accounts 97.23 167.83
In deposit accounts 1.44 1.38
Total 98.68 169.22
17. BANK
BALANCES OTHER THAN CASH AND CASH EQUIVALENTS ABOVE
As at As at
Particulars
March 31, 2022 March 31, 2021
Balances with banks
In dividend current accounts (earmarked accounts) 36.37 49.09
In deposit accounts* 40.07 38.84
Total 76.44 87.93
* The Company had placed fixed deposits aggregating ` 25.00 crores with Dena Bank on February 18, 2014. Subsequent thereto, it was brought to the
notice of the Company that money had been fraudulently withdrawn by pledging fictitious copies of such fixed deposit receipts with the concerned bank by
some individuals. The Company has filed a recovery suit which is pending in the honorable Delhi High Court against the bank. In the interim, the Bank has
renewed the deposits (along with interest earned thereon).
18.(A) EQUITY SHARE CAPITAL

As at As at
Particulars
March 31, 2022 March 31, 2021
Authorised Equity shares capital
250,000,000 (as at March 31, 2021 - 250,000,000) Equity shares of ` 2 each 50.00 50.00
Total 50.00 50.00
Issued, subscribed and fully paid up
199,811,941 (as at March 31, 2021: 199,780,217) Equity shares of ` 2 each 39.96 39.96
Total 39.96 39.96
The Company has only one class of equity shares having a par value of ` 2 per share. Each holder of equity shares is entitled to
one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amount, in proportion to their shareholding.
(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of
the reporting year:
Nos. ` in Crore Nos. ` in Crore
Opening Balance 199,780,217 39.96 199,739,368 39.95
Issued during the year Rs.# Current year Rs. 63,448* (Previous 31,724 # 40,849 0.01
year Rs. 81,698*) - Employee stock option plan
Closing Balance 199,811,941 39.96 199,780,217 39.96
* in absolute INR
20
18. (A) EQUITY SHARE CAPITAL (CONTD..)

(ii) Details of shareholders holding more than 5% equity shares in the company
% holding % holding
Nos. Nos.
in the class in the class
Ms Renu Munjal * 9,309,019 4.66% 9,309,019 4.66%
Mr Suman Kant Munjal * 9,309,019 4.66% 9,309,019 4.66%
Mr Pawan Munjal * 9,309,020 4.66% 9,309,020 4.66%
M/S Bahadur Chand Investments (P) Ltd 40,033,238 20.04% 40,033,238 20.04%
Life Insurance Corporation of India 22,037,338 11.03% 14,816,832 7.42%
* Hold shares on behalf of Brijmohan Lal Om Prakash (partnership firm)
On March 31, 2022, the promoters of the Company have acquired certain shares of the Company. However, same was not
reflecting in the relevant account of promoters as on March 31, 2022 and therefore not included in the shareholding pattern
mentioned above. Details of shares acquired are as follows:
- Pawan Munjal Family Trust, had purchased 43,100 equity shares increasing its total shareholding to 201,100 (0.10%)
- Mr. Vidur Munjal, Promoter Group, had purchased 1,000 equity shares (0.00%) on March 31, 2022.
- Mr. Akshay Munjal, Promoter Group, had purchased 1,000 equity shares (0.00%) on March 31, 2022.
- Mr. Ujjwal Munjal, Promoter Group, had purchased 1,000 equity shares (0.00%) on March 31, 2022.
Shares held by promoters at the end of the year March 31, 2022 % change during
Promoter name No. of shares % of total shares the year
Pawan Munjal 43,364 0.02% 0.00%*

Pawan Munjal (As Karta of Huf) 32,500 0.02% 0.00%
Pawan Munjal,Renu Munjal And Suman Kant Munjal 27,927,058 13.98% 0.00%
(On Behalf of Brijmohan Lal Om Parkash, Partnership Firm)
Renu Munjal 111,482 0.06% 0.00%
Renuka Munjal 32,480 0.02% 0.00%
91,250 0.05% 0.00%
Suman Kant Munjal
10,833 0.01% 0.00%
Suman Kant Munjal (As Karta of Huf)
40,033,238 20.04% 0.00%
Bahadur Chand Investments Pvt Ltd
873,766 0.44% 0.00%
Hero Investcorp Private Limited
158,000 0.08% 0.00%
Pawan Munjal Family Trust (Pawan Munjal & Aniesha Munjal)
8,000 0.00% 0.00%
Rk Munjal & Sons Trust (Renu Munjal)
- 0.00% 0.00%
Santosh Munjal
* Increase of 10 shares in absolute number.


18. (A) EQUITY SHARE CAPITAL (CONTD..)

Shares held by promoters at the end of the year March 31, 2021 % change during
Promoter name No. of shares % of total shares the year
Pawan Munjal 43,354 0.02% 0.00%

Pawan Munjal (As Karta of Huf) 32,500 0.02% 0.00%
Pawan Munjal,Renu Munjal And Suman Kant Munjal 27,927,058 13.98% 0.00%
Renu Munjal 111,482 0.06% 0.00%
32,480 0.02% 0.00%
Renuka Munjal
91,250 0.05% 0.01%
Suman Kant Munjal
10,833 0.01% 0.00%
Suman Kant Munjal (As Karta of Huf)
40,033,238 20.04% 0.04%
Bahadur Chand Investments Pvt Ltd 873,766 0.44% 0.00%
Hero Investcorp Private Limited 158,000 0.08% 0.08%
Pawan Munjal Family Trust (Pawan Munjal & Aniesha Munjal) 8,000 0.00% 0.00%
Rk Munjal & Sons Trust (Renu Munjal) 10 0.00% 0.00%
Santosh Munjal
(iii) Shares options/ Restricted stock units/ Performance linked Restricted stock units granted under
the Company's employee share option plan
Share Options Outstanding (In Nos.)
Particulars As at Expiry Date
As at
March 31, March 31, 2021
2022 11,349 August 21, 2023
ESOP 2016
14,910 October 31, 2024
ESOP 2017
2,128 October 31, 2024
RSU 2017
9,717 82,406 March 25, 2026
ESOP 2018
3,906 January 31, 2026
RSU 2018
64,480 October 22, 2026
ESOP 2019
12,687 3,647 October 22, 2026
RSU 2019
- 94,000 October 27, 2027
ESOP 2020
1,560 October 27, 2027
RSU 2020
- August 11, 2025
RSU 2021
61,780 - August 11, 2025
PRSU 2021
Also refer details of the employee stock option plan provided in Note 40.
(B) PREFERENCE SHARE CAPITAL

As at
Particulars
March 31, 2022
Authorised Preference shares capital
400,000 (as at March 31, 2021 - 400,000) Cumulative convertible preference shares of Rs. 100 each 4.00 4.00
400,000 (as at March 31, 2021 - 400,000) Cumulative redeemable preference shares of Rs. 100 each 4.00 4.00
Total 8.00 8.00
Note:- The Company has not issued preference share capital.
20
19. OTHER EQUITY

As at As at
Particulars
March 31, 2022 March 31, 2021
Capital reserves (#Rs. 4,250 in absolute INR) # #
Securities premium 41.12 31.49
General reserve 2,645.79 2,645.79
Share options outstanding account 24.45 19.04
Retained earnings 13,031.60 12,462.15
Total 15,742.96 15,158.47
A. Capital Reserves
On shares forfeited (#Rs. 4,250 in absolute INR) # #
Securities premium account on forfeited shares reissued(##Rs. 25,500 in absolute INR) ## ##
B. Securities premium
Premium on equity shares issued @ 9.63 13.09
Closing balance 41.12 31.49
@ Addition in securities premium represents premium on equity shares under various schemes amounting to Rs. 5.04 crores (Previous year Rs. 7.83 crores)
and Rs. 4.59 crores (Previous year Rs. 5.26 crores) transferred from share option outstanding account on 31,724 equity shares (Previous year 40,849
equity shares) issued and allotted during the year under ESOP scheme. Also refer Note 40.
As at As at
Particulars
March 31, 2022 March 31, 2021
C. General Reserve
General reserve at the beginning and end of the year 2,645.79 2,645.79
D. Share options outstanding account *
Add: Net charge during the year 10.00 8.86
Less: Transferred to securities premium on issue of shares (4.59) (5.26)
* Also refer note 40
As at As at
Particulars
March 31, 2022 March 31, 2021
E. Retained earnings
Opening Balance 12,462.15 11,416.82
Add: Profit for the year 2,473.02 2,964.20
Other Comprehensive income arising from remeasurement of defined benefit obligation net of (5.44) (21.06)
income tax
Less: Appropriations
Final dividend 699.26 499.35
Interim dividend 1,198.87 1,398.46
Total appropriations 1,898.13 1,897.81
Balance at the end of year 13,031.60 12,462.15
In respect of the year ended March 31, 2022, the directors propose that a dividend of Rs. 35 per share (March 31, 2021 : Rs. 25
per share) and special dividend of Rs. nil per share (March 31, 2021: Rs. 10 per share) be paid on fully paid equity shares. This
equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as liability in
these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated
equity dividend to be paid is Rs. 699.34 crores (March 31, 2021 : Rs. 699.23 crores).


19. OTHER EQUITY (CONTD..)

Nature and Description
(i) Capital reserves:- The Company had transferred forfeited share application money to Capital reserve in accordance with
the provision of the Companies Act, 1956. The reserve will be utilised in accordance with the provisions of the Companies
Act, 2013.
(ii) Securities premium:- Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised
in accordance with the provisions of the Companies Act, 2013.
(iii) General reserve:- General Reserves are free reserves of the Company which are kept aside out of Company’s profits to
meet the future requirements as and when they arise. The Company had transferred a portion of the profit after tax (PAT)
to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not
required under the Companies Act, 2013.
(iv) Share options outstanding account:- Stock option outstanding account is used to record the impact of employee stock
option scheme. Refer note 40 for further detail of this plan.
(v) Retained earnings:- Retained earnings are the accumulated profits earned by the Company till date, less transfer to general
reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.
20. PROVISIONS
As at As at
Particulars
March 31, 2022 March 31, 2021
Non-current
Employee benefits (Refer note (i) below)
Compensated absences 34.08 26.04
Other employee benefits 8.91 8.80
Sub-total (A) 42.99 34.84
Warranties (Refer note (ii) below) 135.08 137.62
Sub-total (B) 135.08 137.62
Total (A+B) 178.07 172.46
Current
Sub-total (A) 8.01 6.71
Sub-total (B) 152.41 153.66
Total (A+B) 160.42 160.37
(i) The provision for employee benefits includes sick leave, gratuity, earned leave and vested long term service reward.
(ii) Movement in warranties provisions
Particulars
March 31, 2022 March 31, 2021
Additions during the year 105.74 222.22
Amount utilised during the year (103.29) (75.60)
Unwinding of discount and effect of changes in the discount rate (6.24) (4.69)
The provision for warranty claims represents the present value as best estimate of the future economic outflows that will be required under the
Company's obligations for warranties. The estimate has been made on the basis of historical warranty trends and may vary as a result of new
materials, altered manufacturing processes or other events affecting product quality.
As at March 31, 2022, this particular provision had a carrying amount of Rs. 287.49 crores (March 31, 2021: Rs. 291.28 crores). In case the warranty
claims differ by 10% from management’s estimates, the warranty provisions would be an estimated Rs. 28.75 crores higher or lower (March 31, 2021
- Rs. 29.13 crores higher or lower).
20
21. DEFERRED TAX (ASSETS)/ LIABILITIES (NET)

As at As at
Particulars
March 31, 2022 March 31, 2021
Deferred tax liabilities
Property, plant and equipments and intangible assets 427.79 422.22
Financial assets carried at fair value through profit or loss 71.72 99.33
Others 3.14 2.91
Sub-total (A) 502.65 524.46
Less: Deferred tax assets
Deferred revenue 52.34 67.46
Accrued expenses deductible on payment 55.44 39.96
VRS expenses u/s 35DDA 6.06 9.08
Right of use assets and lease liabilities 5.52 3.87
Sub-total (B) 119.36 120.37
Total (A-B) 383.29 404.09
Movement of Deferred tax (assets)/ liabilities as at March 31, 2022

Recognised
Opening Recognised in in Other Closing
Particulars
balance profit and Loss comprehensive balance
income
Property, plant and equipments and intangible assets 422.22 5.57 - 427.79
Financial assets carried at fair value through profit or loss 99.33 (27.61) - 71.72
2.91 0.23 - 3.14
Others
524.46 (21.81) - 502.65
Deferred revenue 67.46 (15.12) - 52.34
Accrued expenses deductible on payment 39.96 15.48 - 55.44
VRS expenses u/s 35DDA 9.08 (3.02) - 6.06
Right of use assets and lease liabilities 3.87 1.65 - 5.52
120.37 (1.01) - 119.36
Deferred tax liabilities (net) 404.09 (20.80) - 383.29
Movement of Deferred tax (assets)/ liabilities as at March 31, 2021

Recognised
Opening Recognised in in Other Closing
Particulars
balance profit and Loss comprehensive balance
income
Financial assets carried at fair value through profit or loss 73.98 25.35 - 99.33
Others 8.58 (5.67) - 2.91
494.13 30.33 - 524.46
Deferred revenue 60.14 7.32 - 67.46
101.30 19.07 - 120.37
Deferred tax liabilities (net) 392.83 11.26 - 404.09


22. TRADE PAYABLES

As at As at
Particulars
March 31, 2022 March 31, 2021
Trade payables##
Total outstanding dues of micro and small enterprises 25.55 15.71
Total outstanding dues of creditors other than micro enterprises and small enterprises 4,234.79 5,188.90
Total 4,260.34 5,204.61
##
Include payables to related parties (refer note 36)
Ageing of trade payables as on March 31, 2022:

Outstanding for following periods from the due date of payment
Particulars Total
Not due Less than 1 year 1-2 years 2-3 years More than 3 years
(1) MSME 22.91 2.64 - - - 25.55
(2) Others - Trade payables 2,942.31 274.45 2.85 1.76 1.30 3,222.67
(3) Others - Accruals 1,012.12

Outstanding for following periods from the due date of payment
Particulars Total
Not due Less than 1 year 1-2 years 2-3 years More than 3 years
(1) MSME 12.85 2.86 - - - 15.71
(2) Others - Trade payables 3,324.44 120.98 1.37 0.78 2.32 3,449.89
The Company’s exposure to currency and liquidity risk related to the above financial liabilities is disclosed in Note 41.
Disclosure in respect of the amounts payable to Micro and Small enterprises, as defined under Micro, Small and Medium Enterprises
Development Act, 2006 has been made in the financial statements based on information received and available with the Company.
As at As at
Particulars
March 31, 2022 March 31, 2021
The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each 25.55 15.71
accounting period
The amount of interest paid by the buyer as per the Micro Small and Medium Enterprises Development - -
Act, 2006 (MSMED Act, 2006)
The amounts of the payments made to micro and small suppliers beyond the appointed day during each - -
accounting year
The amount of interest due and payable for the period of delay in making payment (which have been paid - -
but beyond the appointed day during the year) but without adding the interest specified under MSME
The amount of interest accrued for unpaid principal at the end of each accounting year - -
The amount of further interest remaining due and payable even in the succeeding years, until such - -
date when the interest dues as above are actually paid to the small enterprise for the purpose of disa
disallowance as a deductible expenditure under section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006.
23. OTHER FINANCIAL LIABILITIES

As at As at
Particulars
March 31, 2022 March 31, 2021
Current
Capital creditors 34.43 46.52
Security deposits dealers and others 62.93 63.91
Unclaimed dividend * 36.39 49.10
Total 133.75 159.53
* Does not include any amounts outstanding as at March 31, 2022 (March 31, 2021: NIL) which are required to be credited to Investor Education and
Protection Fund.
The Company’s exposure to currency and liquidity risk related to the above financial liabilities is disclosed in Note 41.
20
24. OTHER LIABILITIES

As at As at
Particulars
March 31, 2022 March 31, 2021
Current
Statutory remittances (contributions to provident fund and employee state insurance, 167.15 231.86
withholding taxes, GST etc.)
Advance from customers 112.43 62.13
Others 4.56 3.99
Total 492.12 566.01
Contract balances
Contract liability is comprised of consideration received from customers against which services are yet to be provided reported
as advance from customers disclosed as under:
As at As at
Particulars
March 31, 2022 March 31, 2021
Advance from customers – current 112.43 62.13
Revenue recognised from amount included in contract liabilities (advance from customers and deferred revenue) at the beginning
of the year amounts to Rs. 62.13 crores and Rs. 249.26 respectively (previous year Rs. 114.17 crores and Rs. 213.20 crores
respectively).
25. REVENUE FROM OPERATIONS

Particulars
March 31, 2022 March 31, 2021
(a) Sale of products
Two-wheelers [49.44 lakh units (previous year 58.00 lakh units)] 24,275.42 26,683.82
Spare parts 3,933.75 3,177.70
28,209.17 29,861.52
(b) Income from services
Dealers support services 86.81 42.30
Dealer program 50.52 37.37
Services - others 341.24 362.34
478.57 442.01
(c) Other operating revenue
Duty drawback and other incentives 43.70 22.72
Incentive from State Government 447.09 427.46
Miscellaneous income 66.94 46.91
557.73 497.09
Total 29,245.47 30,800.62

Particulars
March 31, 2022 March 31, 2021
Reconciliation of Revenue from sale of products with the contracted price
Contracted Price 28,709.62 30,337.42
Less: Trade discounts and volume rebates (500.45) (475.90)
Sale of products 28,209.17 29,861.52


26. OTHER INCOME

Particulars
March 31, 2022 March 31, 2021
(a) Interest income on financial assets carried at amortised cost
Tax free bonds, debentures and other instruments classified as debt 49.52 26.57
Deposit with bank and others 136.77 68.53
(b) Dividend income
Dividend received on investments carried at fair value through profit or loss 0.15 0.12
Dividend income from investments carried at cost 14.33 33.60
(c) Profit on sale of investments 101.37 167.13
(d) Gain on investments carried at fair value through profit or loss 223.82 283.01
(e) Other non-operating income
Exchange fluctuation 30.33 -
Total 556.91 579.85
27. COST OF RAW MATERIALS CONSUMED

For the year ended
For the year ended
Particulars
March 31, 2022 March 31,
Raw materials and components consumed:
Opening stock 848.20 616.47
Add: Purchase of raw materials and components 20,461.87 22,149.99
21,310.07 22,766.46
Less: closing stock 573.45 848.20
20,736.62 21,918.26
Less: Cash discount
28.55 42.93
Consumption of raw materials and components
20,708.07 21,875.33
28. CHANGE IN INVENTORIES OF FINISHED GOODS, STOCK IN TRADE AND WORK-IN-PROGRESS

For the year ended
For the year ended
Particulars
(a) Opening stock (Refer note 14)
Stock in trade 23.82 -
Spare parts 54.35
Work-in-progress 38.50
46.90 50.13
495.42 351.96
(b) Closing stock (Refer note 14)
Two Wheelers
317.86
Stock in trade
Work-in-progress 56.19 23.82
36.82 54.35
Net decrease/(increase) 422.71 46.90
72.71 495.42
(143.46)
21
29. EMPLOYEE BENEFIT EXPENSES

Particulars
March 31, 2022 March 31, 2021
Salaries and wages 1,699.32 1,676.40
Contribution to provident and other funds 119.39 112.53
Employee stock compensation cost 10.00 8.86
Staff welfare expenses 106.73 100.93
Total 1,935.44 1,898.72
Employee Benefit Plans

The details of various employee benefits provided to employees are as under:
A. Defined benefit, Contribution and other plans

Particulars
March 31, 2022 March 31, 2021
a) Employer's contribution to provident fund and labour welfare fund 76.96 69.89
b) Employer's contribution to superannuation fund 17.60 17.32
c) Employer's contribution to gratuity fund * 21.70 21.65
d) Employer's contribution to employee state insurance
3.13 3.67
119.39 112.53
* In addition to this contribution made amounting to Rs. 7.27 crore (previous year : Rs. 28.14 crore ) is recognised in other comprehensive income.
B. Defined benefit plans:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity
plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year
of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial
year based on which the Company contributes the ascertained liability to Life Insurance Corporation of India by whom the plan
assets are maintained.
These plans typically expose the Company to actuarial risks such as: investment risk, inherent interest rate risk , longevity risk
and salary risk.
Investment Risk The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.
Interest Rate Risk The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined
benefit obligation will tend to increase.
Longevity Risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will increase
the
plan's liability.
Salary Risk Higher than expected increases in salary will increase the defined benefit obligation.
The present value of the defined benefit obligation, and the related current service cost, were measured using the projected unit
credit method.
The principal assumptions (demographic and financial) used for the purposes of the actuarial valuations were as follows :-
Gratuity
Principal assumptions: As at As at
March 31, 2022 March 31, 2021
Discount rate 6.90% 6.70%
Future salary increase 6.50% p.a. 6.50% p.a.
Retirement age 58 years 58 years
Withdrawal rate Upto 30 years:3% Upto 30 years:3%
from 31 to 44 years:2% from 31 to 44 years:2%
After 44 years: 1% After 44 years: 1%
In service mortality Indian Assured Lives Indian Assured Lives
Mortality (2006-08) Ult. Mortality (2006-08) Ult.



(CONTD..)
Amounts recognized in statement of profit and loss in respect of this defined benefit plan are
as follows :-
Gratuity
Particulars For the year ended For the year ended
March 31, 2022 March 31, 2021
Service cost:
Current service cost 22.67 21.13
Net Interest expense/(income) (0.97) 0.52
Components of defined benefit costs recognized in profit or loss 21.70 21.65
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense) (0.36) 3.25
Actuarial (gains)/losses arising from changes in financial assumptions (5.87) (2.70)
Actuarial (gains)/losses arising from experience adjustments 13.50 27.59
Components of defined benefit costs recognized in other comprehensive income 7.27 28.14
Total 28.97 49.79
The amount included in the balance sheet arising from the entity's obligation in respect of its defined
benefit plans is as follows :
Gratuity
Particulars As at
As at March31,2021
March31,2022
Present Value of funded defined benefit obligation 395.90
356.80
Fair value of plan assets 395.90 356.80
Net liability arising from defined benefit obligation - -
Movements in the present value of the defined benefit obligation are as follows :-
Gratuity
March 31, 2022 March 31, 2021
Opening defined obligation 356.80 318.03
Current service cost 22.67 21.13
Interest cost 23.42 20.10
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in financial assumptions (5.87) (2.70)
Actuarial (gains)/losses arising from experience adjustments 13.51 27.59
Benefits paid (14.63) (27.35)
Closing defined benefit obligation 395.90 356.80
Movements in the fair value of the plan assets are as

follows
Gratuity
March 31, 2022 March 31, 2021
Opening fair value of plan assets 356.80 252.35
Interest income 24.38 19.58
Remeasurement gain/(loss):
Return on plan assets (excluding amounts included in net interest expense) 0.37 (3.25)
Contribution 28.98 115.47
Benefit paid (14.63) (27.35)
Closing fair value of plan assets 395.90 356.80
21
29. EMPLOYEE BENEFIT EXPENSES (CONTD..)

The Company makes annual contribution to Life Insurance Corporation (LIC). As LIC does not disclose the composition of its
portfolio investments, break-down of plan investments by investment type is not available to disclose.
Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase.
The sensitivity analysis below have been determined based on reasonable possible changes of the respective assumptions
occurring at the end of the year, while holding all other assumptions constant.
– If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by Rs.13.99 crore
(increase by Rs. 14.99 crore) [as at March 31, 2021: Decrease by Rs. 13.03 crores (increase by Rs. 13.95 crores )].
– If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligation would increase by Rs. 14.98
crores (decrease by Rs. 14.10 crores) [as at March 31, 2021: increase by Rs. 13.92 crores (decrease by Rs. 13.11 crores)].
Sensitivities due to change in mortality rate and change in withdrawal rate are not material and hence impact of such change is
not calculated.
Sensitivity Analysis
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated
using the projected unit credit method at the end of reporting year, which is same as that applied in calculating the defined
benefit obligation liability recognized in the balance sheet.
Maturity profile of defined benefit obligation

As at As at
Particulars
March 31, 2022 March 31, 2021
Weighted Average duration of the defined benefit obligation (in years) 9.0 years 9.0 years
The Company expects to make a contribution of Rs. 24.74 crore (as at March 31, 2021: Rs. 22.67 crore) to the defined benefit
plans during the next financial year.
Defined benefit liability and employer contribution

The Expected maturity analysis of undiscounted defined benefit liability is as follows:
Between Between Over

Particulars Less than a year Total
1-2 2-5 5 years
years years
As at March 31, 2022 67.24 27.79 97.80 198.79 391.62
As at March 31, 2021 56.36 23.63 94.08 166.15 340.22
30. FINANCE COSTS

Particulars
March 31, 2022 March 31, 2021
Interest cost on financial liability at amortised cost
- on dealers security deposits 2.70 2.50
- on others 0.64 1.49
- Unwinding of discount on provisions and lease liabilities
22.46 17.85
Total 25.80 21.84


31. OTHER EXPENSES

Particulars
March 31, 2022 March 31, 2021
Stores and tools consumed 79.46 81.47
Packing, forwarding and freight 940.47 955.31
Power and fuel 108.53 112.91
Rent (Refer note 7A) 35.63 32.89
Repairs and maintenance
- Buildings 22.20 17.99
- Plant and machinery 113.23 105.97
- Others 9.82 9.30
Insurance charges 73.40 68.11
Rates and taxes 17.56 16.11
Advertisement and publicity
720.45 593.32
Donations
0.02 0.09
Expenditure on corporate social responsibility (Refer note 42)
87.85 68.35
Payment to auditors (Refer Below)
1.97 1.69
Exchange fluctuation
Loss on sale of property, plant and equipment - 8.34
Loss allowance on trade receivables 10.23 4.67
Miscellaneous expenses - 45.80
Total 893.71 998.01
3,114.53 3,120.33
Payment to auditors
Particulars
March 31, 2022 March 31, 2021
a) As Statutory Audit
- Audit fee 0.92 0.82
- Limited Review of unaudited financial results 0.75 0.60
- Other certifications 0.09 0.08
b) Tax audit fees 0.08 0.08
c) Out of pocket expenses 0.13 0.11
Total 1.97 1.69
32. INCOME TAX EXPENSE

(a) Income tax expense recognised in the Statement of profit and loss
Particulars
March 31, 2022 March 31, 2021
Current tax
In respect of the current year 797.91 924.92
Deferred tax
In respect of the current year (20.80) 11.26
Total income tax expense recognised in the Statement of profit and loss 777.11 936.18
(b)Income tax on other comprehensive income

Particulars
March 31, 2022 March 31, 2021
Arising on income and expenses recognised in other comprehensive income:
Re-measurement of defined benefit obligations (1.83) (7.08)
Total income tax benefit recognised in other comprehensive income (1.83) (7.08)
21

(CONTD..)
(c) The income tax expense for the year can be reconciled to the accounting profit as follows:
Particulars
March 31, 2022 March 31, 2021
Income tax expense calculated at 25.168% 817.99 981.65
Effect of income exempt/ taxed on lower/ higher rate (60.87) (35.94)
Others 19.99 (9.53)
Income tax expense recognised in the Statement of profit and loss 777.11 936.18
33. EARNING PER SHARE

Particulars
March 31, 2022 March 31, 2021
Basic earnings per share (in Rs.) 123.78 148.39
Diluted earnings per share (in Rs.) 123.74 148.37
The earnings and weighted average number of equity shares used in the calculation of basic earnings per
share are as follows.
Profit for the year, as per statement of profit and loss (Rs. in crores) 2,473.02 2,964.20
Opening Balance 199,780,217 199,739,368
Effect of share options exercised 16,722 16,417
Weighted average number of equity shares for the purposes of basic earnings per share 199,796,939 199,755,785
Effect of share options 61,672 30,379
Weighted average number of equity shares for the purposes of diluted earnings per share 199,858,611 199,786,164
34. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
As at As at
Particulars
March 31, 2022 March 31, 2021
a) Contingent liabilities
In respect of excise and other matters - -
The various matters are subject to legal proceedings in the ordinary course of business. The legal proceeding when ultimately
concluded will not, in the opinion of management, have a material effect on the result of operations or the financial position of
the Company.
Additionally, the Company is involved in other disputes, lawsuits, claims, inquiries, investigations and proceedings, including
commercial matters that arise from time to time in the ordinary course of business. The Company believes that none of these
matters, either individually or in aggregate, are expected to have any material adverse effect on its financial statements.
As at As at
Particulars
March 31, 2022 March 31, 2021
b) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for 296.89 248.55
(Net of advances paid amounting to Rs. 87.77 crores (March 31, 2021: Rs. 27.33 crores)
c) The Income Tax Department ("the Department") conducted a Search activity ("the Search") under Section 132 of the Income Tax Act on the
Company in March 2022. Subsequently, the Company has provided all support and cooperation and the necessary documents and data to
the Department, as requested by the Department.
The Company is examining and reviewing details of the matter and will take appropriate actions, including addressing regulatory actions, if
and when they occur.
While the uncertainity exists regarding the outcome of the proceedings by the department, the Company after considering all available
information and facts as of date, has not identified the need for any adjustments to the current or prior period financial statements.


35. The Company primarily operates in the automotive segment. The automotive segment includes all activities related to
development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories. The
board of directors of the Company, who has been identified as being the chief operating decision maker (CODM), evaluates
the Company's performance, allocate resources based on the analysis of the various performance indicator of the Company
as a single unit.
Therefore, based on the guiding principles given in Ind AS 108 on ‘Operating Segments’, the Company’s business activity fall
within a single operating segment, namely automotive segment . Accordingly, the disclosure requirements of Ind AS 108 are
not applicable.
Entity wide disclosure details as per Ind AS 108 on Operating segments are given below:
Revenue from operations from external customers for the year ended March 31, 2022
Domestic Overseas Total
2021-22 27,607.50 1,637.97 29,245.47
Revenue from operations from external customers for the year ended March 31, 2021
Domestic Overseas Total
2020-21 29,780.15 1,020.47 30,800.62
Disclosure as per the requirement of Ind AS 115, Revenue : For the year ended March 31, 2022
India Outside India Total
Sale of products 26,591.50 1,617.67 28,209.17
Income from services 458.28 20.29 478.57
Other operating revenue 557.73 - 557.73
Total 27,607.51 1,637.96 29,245.47
Disclosure as per the requirement of Ind AS 115, Revenue : For the year ended March 31, 2021
India Outside India Total
Sale of products 28,854.86 1,006.66 29,861.52
Income from services 428.20 13.81 442.01
Other operating revenue 497.09 - 497.09
Total 29,780.15 1,020.47 30,800.62
a) Domestic segment includes sales and services to customers domiciled in India.
b) Overseas segment includes sales and services rendered to customers domiciled outside India.
c) There are no material non-current assets domiciled outside India.
d) There is no major individual customer whose revenue exceeds more than 10% of the entity's revenue.
21
36. RELATED PARTY DISCLOSURES UNDER IND AS 24

A. Parties in respect of which the Company is an associate
Bahadur Chand Investments Private Limited - Core Investment Company
Brijmohan Lal Om Prakash (Partnership firm)
B. Parties over which the Company has control

Subsidiaries
HMCL Americas Inc. USA
HMCL Netherlands BV
HMC MM Auto Limited
Hero Tech Center Germany GmbH
Subsidiaries of HMCL Netherlands BV

-HMCL Colombia SAS
-HMCL Niloy Bangladesh Limited
Associate of the Company

C. Key management personnel and their relatives

Mr. Pawan Munjal - Chairman and Chief Executive Officer
Mr. Suman Kant Munjal - Director
Mr. Vikram Sitaram Kasbekar - Whole Time Director
Mr. Niranjan Kumar Gupta - Chief Financial Officer
Ms. Neerja Sharma (till January 31, 2022) - Company Secretary
Mr. Dhiraj Kapoor (w.e.f February 01, 2022) - Company Secretary
Non Executive and Independent Directors

Mr. Pradeep Dinodia
Mr. M.Damodaran
Mr. Paul B. Edgerley (till May 04, 2021)
Dr. Jagmohan Singh Raju
Ms. Tina Trikha
Mr. B.S. Dhanoa (w.e.f. October 01, 2020)
Ms. Camille Tang (w.e.f November 19, 2021)
Mr. Rajnish Kumar (w.e.f November 25, 2021)
Ms. Vasudha Dinodia (w.e.f November 25, 2021)
Enterprises over which key management personnel and their relatives are able to control:
A. G. Industries Private Limited, A. G. Industries (Bawal) Pvt. Limited, Rockman Industries Limited, Cosmic Kitchen Private
Limited, Hero Mindmine Institute Private Limited, Hero InvestCorp Private Limited, Hero Solar Energy Private Limited, BML
Munjal University, Raman Kant Munjal Foundation, Excellence Enablers Private Limited and Raman Munjal Vidya Mandir


36. RELATED PARTY DISCLOSURES UNDER IND AS 24 (CONTD..)

Transactions with the above related parties:
Particulars
March 31, 2022 March 31, 2021
a) PARTIES IN RESPECT OF WHICH THE COMPANY IS AN ASSOCIATE
Dividend paid
Brijmohan Lal Om Prakash (Partnership firm) 265.31 265.31
Hero InvestCorp Private Limited 8.30 8.30
Bahadur Chand Investments Private Limited 380.32 380.32
b) PARTIES OVER WHICH THE COMPANY HAS CONTROL
Investment in equity instruments during the year
Subsidiaries
HMCL Netherlands BV - 14.22
Dividend Received
HMCL Netherlands BV 9.09 20.83
Sales *
HMCL Colombia SAS 256.35 180.33
HMCL Niloy Bangladesh Limited 442.86 372.03
Hero Tech Center Germany GmbH - 0.13
Other operating revenues
Purchases of goods/services
HMC MM Auto Limited 218.12 451.78
Hero Tech Center Germany GmbH 110.43 78.28
Purchase of Assets
HMC MM Auto Limited - 4.80
Expenses reimbursed
*Net of reimbursements amounting to Rs. 6.90 crores (March 31, 2021: Rs. 5.57 crores)
Balance outstanding at the year end

As at As at
Particulars
March 31, 2022 March 31, 2021
- Trade Receivable
- Trade Payable
HMC MM Auto Limited 32.12 60.25
Hero Tech Center Germany GmbH 26.82 15.70
c) ASSOCIATE OF THE COMPANY

Particulars
March 31, 2022 March 31, 2021
Lease rental expenses 2.67 7.83
Dividend received 5.24 12.77
Dividend paid 0.01 0.01
Investment in equity instruments during the year - 194.38
Miscellaneous expenses 12.19 13.23
Investment (refer note 9) 150.00 174.00
21

As at As at
Particulars
March 31, 2022 March 31, 2021
- Payable
Hero FinCorp Limited - 0.04
d) KEY MANAGEMENT PERSONNEL AND THEIR RELATIVES

For the year ended
For the year ended
March 31, 2022
Managerial Remuneration/Sitting fees
Mr. Pawan Munjal 84.35 86.93
Mr. Vikram Sitaram Kasbekar 8.08 6.54
Mr. Suman Kant Munjal 0.36
Mr. Niranjan Kumar Gupta 0.23
6.71 4.97
Ms. Neerja Sharma (till January 31, 2022)
5.10 5.31
Mr. Dhiraj Kapoor (w.e.f February 01, 2022)
0.15 -
Dividend paid
Commission/Sitting fees/expenses reimbursement to Non-Executive and Independent Directors 2.93 2.93
Mr. Pradeep Dinodia
Mr. M.Damodaran 1.43
Mr. Paul B. Edgerley (till May 04, 2021) 1.28 1.09
Dr. Jagmohan Singh Raju 0.05 1.01
Mr. B. S. Dhanoa (w.e.f October 01, 2020) 0.93 0.68
Ms. Tina Trikha 0.87 0.66
Ms. Camille Tang (w.e.f November 19, 2021) 0.95 0.24
Mr. Rajnish Kumar (w.e.f November 25, 2021) 0.25 0.56
Ms. Vasudha Dinodia (w.e.f November 25, 2021) 0.18 -
0.18 -
-

As at
As at
March 31, 2022
-Payables (including commission) 30.49 41.35
Category-wise break up of compensation to key management personnel during the year is as follows:
Particulars
March 31, 2022 March 31, 2021
Managerial remuneration*
Short-term benefits 97.82 98.94
Post-employment benefits 4.55 3.92
Share-based payments 2.02 0.89
* Does not include provisions for incremental gratuity and compensated absences liabilities, since the provisions are based on actuarial valuations for the
Company as a whole.
e) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND THEIR RELATIVES ARE ABLE TO EXERCISE CONTROL
Particulars
March 31, 2022 March 31, 2021
Purchase of raw materials and components etc. 2,959.95 2,610.84
Purchase of property, plant and equipments 26.81 18.79
Payment towards services etc. 6.35 3.55
Expenditure towards Corporate Social Responsibility (CSR) 23.84 12.10



Balance outstanding as at the year end
As at As at
Particulars
March 31, 2022 March 31, 2021
- Payables 449.69 400.03
- Receivables - 0.19
Significant related party transactions included in the above are as under :-

Particulars
March 31, 2022 March 31, 2021
Purchase of raw materials and components etc.
A. G. Industries Private Limited 811.47 788.25
Rockman Industries Limited 2,022.02 1,669.14
A. G. Industries (Bawal) Pvt Limited 126.46 151.10
Purchase of Assets
Rockman Industries Limited 18.54 11.92
A.G. Industries Private Limited 6.11 6.87
Hero Solar Energy Private Limited 2.16 -
Payment for services etc.
BML Munjal University 1.64 2.33
Hero Solar Energy Private Limited 1.96 0.20
A. G. Industries Private Limited - 0.85
Cosmic Kitchen Pvt Limited 2.74 -
Excellence Enablers Private Limited - 0.09
Raman Munjal Vidya Mandir - 0.08
CSR
Raman Kant Munjal Foundation 3.84 2.10
Significant closing balances of related parties are as under :-

As at As at
Particulars
March 31, 2022 March 31, 2021
- Trade Payables
D. Terms and Conditions

All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions and
within the ordinary course of business. Outstanding balances at the year end are unsecured and settlement occurs in cash.
37. NOTE ON COVID-19

The situation of COVID-19 pandemic is continuously evolving, the impact assessed may be different from the estimates
made as at the date of approval of these financial statements and management will continue to monitor any material
changes arising due to the impact of this pandemic on financial and operational performance of the Company and take
necessary measures to address the situation.
22
38. Information pursuant to clause 3 (vii) (b) of the Companies (Auditor’s Report) Order, 2020 in respect of disputed dues, not
deposited as at March 31, 2022, pending with various authorities:
Amount Amount paid Financial year to which the Forum where Dispute is
Name of Statute Nature of Dues
Amount Relates Pending
Central Excise Law Excise duty 2.91 0.12 FY 2004-05 to Additional Commissioner
FY 2015-16, FY 2017-18
59.28 1.64 2004-05 to 2017-18 CESTAT (The Customs
Excise and Service Tax
Appellate Tribunal)
0.78 0.02 FY 2014-15 to Commissioner Appeal
FY 2017-18
Central Goods and Goods and Services Tax 0.09 0.01
2017-18 GST Appellate Tribunal
Services Tax Act, 2017 (GST) 0.18 0.18 FY 2021-22 Joint commissioner Appeals
Finance Act, 1994 Service Tax 0.89 0.45 2004-05 to 2005-06 Supreme Court
233.11 24.99 2004-05 to 2011-12 CESTAT
Income Tax Act, 1961 Income-tax 9.94 - FY 2018-19 Commissioner of Income
Tax (Appeals)
2,336.71 350.51 FY 2010-11 Commissioner of Income
Tax (Appeals)
Customs Act Custom Duty 0.10 0.00* Financial year (“FY”) CESTAT (The Customs
2015-16 to FY 2016-17 Excise and Service Tax
Appellate Tribunal)
*Rs. 38,452 in absolute terms.
The following matters have been decided in favour of the Company but the department has preferred appeals at higher levels:
Amount paid as
Amount Financial year to which the Forum where Dispute is
Name of Statute Nature of Dues per stay order/
(Rs. in crores) Amount Relates Pending
mandatory deposit
Central Excise Law Excise duty 8.78 -
2002-03 to 2008-09 Supreme Court
85.66 - 2009-10 to 2010-11, CESTAT
2013-14
Income Tax Act, 1961 Income-tax 4.10 -
2005-06 Supreme Court
7,367.64 -
1995-96, 1996-97, High Court
1997-98, 1998-99,
2000-01, 2002-03,
2003-04, 2006-07,
2009-10, 2010-11,
2011-12 and 2012-13.
305.22 -
FY 2013-14 Income Tax Appellate
Tribunal
39. RESEARCH AND DEVELOPMENT EXPENSES:

Expenses charged to revenue account
Particulars
March 31, 2022 March 31, 2021
Raw material consumption 22.09 12.23
Consumables 5.78 2.48
Employee Benefits 224.91 211.93
Depreciation and amortisation 102.14 96.97
Others*
76.50 72.20
Total
431.42 395.81
* Includes intangible asset under development amounting to Rs. Nil (previous year Rs. 0.23 crores) expensed off during the year.


39. RESEARCH AND DEVELOPMENT EXPENSES (CONTD..)

Capital Expenditure
For the year ended
Particulars For the year ended
March 31, 2021
March 31,
Building 2022 0.06
Equipments 10.13
Furniture and fixtures 1.14
Software 0.20 8.66
Vehicles 2.24
Data processing equipments 1.52
Intangible assets 8.43 18.52
42.27
Capital Work-in-progress 101.94
Total 0.54 144.21
40. SHARE-BASED PAYMENTS

Employee Stock Option Plan
The Employee Stock Options Scheme titled “Employee Incentive Scheme 2014 - Options and Restricted Stock Unit” hereafter
referred to as “Employee Incentive Scheme 2014” or “the Scheme” was approved by the shareholders of the Company through
postal ballot on September 22, 2014. The Scheme covered 49,90,000 options/restricted units for 49,90,000 equity shares.
The Scheme allows the issue of options/restricted stock units (RSU)/performance linked restricted stock units (PRSU) to
employees of the Company which are convertible to one equity share of the Company. As per the Scheme, the Nomination
and Remuneration Committee grants the options/RSU/PRSU to the employees deemed eligible. The options and RSU/PRSU
granted vest over a period of 4 and 3 years respectively from the date of the grant in proportions specified in the respective
ESOP Plans. Options/RSU/PRSU may be exercised by the employees after vesting period upto 7 years from the date of grant.
The fair value as on the date of the grant of the options/RSU/PRSU, representing Stock compensation charge, is expensed over
the vesting period.
Details of the Stock Option/RSU/PRSU issued under the Scheme

Weighted Average
Number of Options/ Exercise Price Fair value of the
Plan RSU/PRSU Grant date Expiry date
Rs. Options at grant date
Rs.
ESOP 2014 23,110 October 22, 2014 October 21, 2021 2,159 1,228
ESOP 2016 41,290 August 22, 2016 August 21, 2023 2,469 1,324
RSU 2016 11,194 August 22, 2016 August 21, 2023 2 3,290
15,769 October 31, 2017 October 31, 2024 2 3,663
RSU 2017
125,000 March 25, 2019 March 25, 2026 2,033 1,138
ESOP 2018
17,760 January 31, 2019 January 31, 2026 2 2,672
RSU 2018
98,750 October 22, 2019 October 22, 2026 1,745 1,067
ESOP 2019
5,210 October 22, 2019 October 22, 2026 2 2,308
RSU 2019 101,375 October 27, 2020 October 27, 2027 2,085 1,200
ESOP 2020 1,560 October 27, 2020 October 27, 2027 2 2,686
PRSU 2021
22
40. SHARE-BASED PAYMENTS (CONTD..)

Fair value of share options/RSU granted during the year
The fair value of options/RSU granted is estimated using the Black Scholes Option Pricing Model after applying the key
assumption which are tabulated below. The expected volatility has been calculated using the daily stock returns on NSE,
based on expected life options/RSU of each vest. The expected life of share option is based on historical data and current
expectation and not necessarily indicative of exercise pattern that may occur.
Fair value of PRSU granted during the year

The fair value of PRSU granted is estimated using the Monte Carlo simulation model for performance based conditions, after
applying the key assumption which are tabulated below. The expected volatility has been calculated using the daily stock returns
on NSE, based on expected life PRSU of each vest. The expected life of share option is based on historical data and current
Inputs in to the pricing model

Option Plan
Particulars
RSU 2021 PRSU 2021 ESOP 2020 RSU 2020
Weighted Average Fair value of option/RSU/ PRSU 2,699 2,439 1,200 2,686
Spot share price 2,999 2,797 3,210 3,210
Exercise price 2 2 2,085 2
Expected average volatility 36.11% 33.30% 26.42% 26.61%
4 years 4 years 7 Years 7 Years
Option life
4.22% 3.16% 3.91% 3.91%
Dividend yield
6.27% 5.16% 5.88% 5.88%
Average risk-free interest rate
Movements in share options during the year

For the year ended March 31, 2022 For the year ended March 31, 2021
Particulars Weighted average Weighted average

Number of options exercise price Number of options exercise price
Rs. Rs.
Outstanding at the beginning of the year 267,145 2,044 245,061 2,031
Granted during the year - - 101,375 2,085
Forfeited during the year 47,913 2,011 41,679 2,026
Exercised during the year 25,891 1,952 37,612 2,085
Outstanding at the end of year 193,341 2,065 267,145 2,044
Exercisable at the end of year 78,682 2,194 50,538 2,267
Movements in RSU/PRSU during the year


Number of Number of
exercise price exercise price
RSU/PRSU RSU/PRSU
Rs. Rs.
Outstanding at the beginning of the year 11,241 2.00 12,918 2.00
Granted during the year 74,105 2.00 1,560 2.00
Forfeited during the year 15,195 2.00 - -
Exercised during the year 5,833 2.00 3,237 2.00
Outstanding at the end of year 64,318 2.00 11,241 2.00
Exercisable at the end of year 2,232 2.00 3,802 2.00



Share options exercised during the year
Weighted Weighted
Option Plan No. of options Share price at No. of options Share price at
exercised exercise date exercised exercise date
Rs. Rs.
ESOP 2014 - - 864 3,224
ESOP 2016 336 2,870 7,941 3,101
RSU 2016 - - - -
ESOP 2017 265 2,898 2,628 3,164
RSU 2017 2,128 2,786 - -
ESOP 2018 10,726 2,852 13,344 3,014
RSU 2018 1,674 2,786 1,674 2,361
ESOP 2019 9,458 2,718 12,835 3,202
RSU 2019 1,563 2,668 1,563 3,238
5,106 2,698 - -
ESOP 2020
RSU 2020 468 2,668 - -
Share options/RSU/PRSU outstanding at end of the year

Remaining Remaining
Options Options
contractual life contractual life Exercise Price
Options/ RSU Plans/PRSU outstanding as at outstanding as at
(in Years) as on (in Years) as on Rs.
March 31, 2022 March 31, 2021
March 31, 2022 March 31, 2021
ESOP 2014 - - - 0.56 2,159
ESOP 2016 9,717 11,349 1.39 2.39 2,469
RSU 2016 - - 1.39 2.39 2
ESOP 2017 12,687 2.59 3.59 2,818
14,910
3.59 2
RSU 2017 - 2,128 2.59
4.98 2,033
ESOP 2018 61,780 82,406 3.98
4.84 2
RSU 2018 2,232 3,906 3.84
5.56 1,745
ESOP 2019 40,362 64,480 4.56 5.56 2
RSU 2019 2,084 3,647 4.56 6.58 2,085
ESOP 2020 68,795 94,000 5.58 6.58 2
RSU 2020 1,092 1,560 5.58 - 2
RSU 2021 30,632 - 3.37 - 2
PRSU 2021 28,279 - 3.37
257,660 278,386
During the year ended March 31, 2022, the Company recorded an employee stock compensation expense of Rs. 10.00 crores
(previous year Rs. 8.86 crore) in the Statement of Profit and Loss and the balance in share options outstanding account as at
March 31, 2022 is Rs. 24.45 crore (March 31, 2021: Rs. 19.04 crore).
22
41. FINANCIAL INSTRUMENTS

41.1 Capital Management
The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the
return to stakeholders through efficient allocation of capital towards expansion of business, opitimisation of working capital
requirements and deployment of surplus funds into various investment options. The Company does not have debts and meets
its capital requirement through equity and internal accruals.
The Company is not subject to any externally imposed capital requirements
The management of the Company reviews the capital structure of the Company on regular basis. As part of this review, the
Board considers the cost of capital and the risks associated with the movement in the working capital.
The following table summarizes the capital of the Company:
As at As at
Particulars
March 31, 2022 March 31, 2021
Share capital 39.96 39.96
Equity reserves 15,742.96 15,158.47
Total Equity 15,782.92 15,198.43
Categories of financial instruments

As at As at
Particulars
March 31, 2022 March 31, 2021
Financial assets
Financial assets at fair value through profit or loss
Non-current
Investments 1,485.56 1,338.10
Current
Investments 5,786.61 6,136.94
Financial assets at amortised cost
Non-current
Investments 969.51 610.49
Loans 17.43 16.73
Others 41.60 35.50
Current
Trade receivables 2,304.27 2,426.76
Cash and bank balances 175.12 257.15
Loans 22.81 22.95
Others 454.80 371.52
Total 11,308.76 11,270.69
Financial liabilities at amortised cost
Non-Current
Lease Liability 142.32 129.81
Other financial liabilities 155.04 146.04
Current
Trade payables 4,260.34 5,204.61
Total 4,717.20 5,659.69


41. FINANCIAL INSTRUMENTS (CONTD..)

41.2 Fair value measurements
The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:
The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:
Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets
for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market
data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions
that are neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.
Fair value of the Company's financial assets that are measured at fair value on a recurring basis:
There are certain Company's financial assets which are measured at fair value at the end of each reporting period. Following
table gives information about how the fair values of these financial assets are determined:
Fair value as at March 31, 2022

Particulars
Level 1 Level 2 Level 3
Non-current
Investments in mutual funds - 1,315.68 -
Investments in equity instruments 19.88 - -
- - 150.00
Investments in debentures
Current
Investments in mutual funds 5,695.22 91.39 -

Particulars
Non-current
Current
Investments in mutual funds 5,120.10 1016.84 -
22

41.2 Fair value measurements (Contd..)
Fair value of the Company's financial assets that are not measured at fair value (but fair value disclosures are required)
Except as detailed out in the following table, the management considers that the carrying amounts of financial assets and
financial liabilities recognised in the financial instruments approximate their fair values:
March 31, 2022 March 31, 2021

Particulars
Carrying amount Fair value Carrying amount Fair value
Non-current
Investments in bonds 969.51 966.95 610.49 610.73
Current
Fair value hierarchy

Particulars March 31, 2022 March 31, 2021
Level 2 Level 2
Non-current
Investments in bonds 966.95 610.73
Current
The fair value of the financial assets and financial liabilities are included at the amount that would be received to sell an
asset and paid to transfer a liability in an orderly transaction between the market participants. The following methods and
assumptions were used to estimate the fair values:
- Investments traded in active markets are determined by reference to quotes from the financial institutions:- Net asset
value (NAV) for investments in mutual funds declared by mutual fund house, quoted price of equity shares in the stock
exchange etc.
- The fair value of bonds is based on quoted prices and market observable inputs.
- Trade receivables, cash and cash equivalents, other bank balances, loans, other current financial assets, trade
payables, current lease liabilities and other current financial liabilities: Fair value approximate their carrying amounts
largely due to short-term maturities of these instruments.
- The Company’s non current lease liabilities and non current financial assets are measured at amortised cost, which
approximates the fair value as on the reporting date.
- Management uses its best judgment in estimating the fair value of its financial instruments. However, there are
inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value
estimates presented above are not necessarily indicative of all the amounts that the Company could have realized or
paid in sale transactions as of respective dates, as such, the fair value of the financial instruments subsequent to the
respective reporting dates may be different from the amounts reported at each year end.
- There are no transfers between Level 1, Level 2 and Level 3 during the year ended March 31, 2022 and March 31, 2021



Financial risk management objectives and Policies
41.3 Financial risk management objectives
The Company's Corporate Treasury function monitors and manages the financial risks relating to the operations of the
Company. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and
liquidity risk.
The Company seeks to minimise the effects of these risks by using derivative financial instruments, diversification of
investments, credit limit to exposures, etc., to hedge risk exposures. The use of financial instruments is governed by the
Company's policies on foreign exchange risk and the investment. The Company does not enter into or trade financial
instruments, including derivative financial instruments, for speculative purposes.
Market risk
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a
change in the price of a financial instrument. The Company's activities expose it primarily to the financial risks of changes in
foreign currency exchange rates and interest rates risk/ liquidity which impact returns on investments. The Company enters
into derivative financial instruments to manage its exposure to foreign currency risk including export receivables and import
payables. Future specific market movements cannot be normally predicted with reasonable accuracy.
Market risk exposures are measured using sensitivity analysis.
Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign
exchange contracts.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end
of the reporting period are as follows:
Foreign currency exposure as at March 31, 2022 USD EURO JPY COP
Trade Receivable 4.01 - 1.03 -
Trade Payables 0.22 0.34 - 0.59
Capital Creditors - 0.01 - -
Forward cover-Bought - - - -
Foreign currency exposure as at March 31, 2021 USD EURO JPY SGD
Trade Receivable 3.10 - - -
Trade Payables 1.46 0.02 1.57 0.01
Capital Creditors 0.00 0.23 - -
Forward cover-Bought 1.20 - - -
Foreign currency sensitivity

The following table details the Company's sensitivity to a 5% increase and decrease in the INR against the relevant foreign
currencies. (+)(-)5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel
and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity
analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period
end for a 5% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the
INR strengthens (+)(-)5% against the relevant currency. For a 5% weakening of the rupees against the relevant currency,
there would be a comparable impact on the profit or equity, and the balances below would be positive or negative.
22

41.3 Financial risk management objectives (Contd..)
(Rs. In Crores)
2021-22 2020-21
Currency
5% increase 5% decrease 5% increase 5% decrease
Receivable
USD 15.18 (15.18) 11.31 (11.31)
JPY 0.03 (0.03)
Trade Payable
USD (0.82) 0.82 (5.33) 5.33
- - (0.06) 0.06
JPY
(1.45) 1.45 (0.10) 0.10
EUR
(0.01) 0.01 (0.01) 0.01
SGD
- -
COP
Capital Creditors
- - (0.01) 0.01
USD
(0.03) 0.03 (1.04) 1.04
EUR
- - 4.38 (4.38)
Forward cover-Bought
12.90 (12.90) 9.14 (9.14)
Impact on profit or loss as at the end of the reporting period
9.65 (9.65) 6.84 (6.84)
Impact on total equity as at the end of the reporting period
In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
exposure at the end of the reporting period does not reflect the exposure during the year/ in future years.
Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating
the risk of financial loss from defaults. The Company's exposure and wherever appropriate, the credit ratings of its
counterparties are continuously monitored and spread amongst various counterparties. Credit exposure is controlled by
counterparty limits that are reviewed and approved by the management of the Company.
Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, investments
in debt instruments/ bonds, mutual funds, trade receivables, loans and advances and derivative financial instruments. None
of the financial instruments of the Company result in material concentrations of credit risks.
The Company write off the receivables in case of certainty of irrecoverability.
Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and
not impaired, there were no indication of default in repayment as at the year end.
The age analysis of trade receivables as of the balance sheet date have been considered from the due date and disclosed in
the note no. 15 above.
The Company has used a practical expedient and analysed the recoverable amount of receivables on an individual basis by
computing the expected loss allowance for financial assets based on historical credit loss experience.



41.3 Financial risk management objectives (Contd..)
Movement in the expected credit loss allowance of financial assets
March 31, 2022 March 31, 2021
Balance at beginning of the year 117.05 71.25
Add: Provided during the year 22.24 58.45
Less: Reversals of provision 22.24 12.26
Less: Amounts written back 0.19 0.39
Balance at the end of the year 116.86 117.05
Other price risks including interest rate risk

The Company has deployed its surplus funds into various financial instruments including units of mutual funds, bonds/
debentures, etc. The Company is exposed to NAV (net asset value) price risks arising from investments in these funds. The value
of these investments is impacted by movements in interest rates , liquidity and credit quality of underlying securities.
NAV price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to NAV price risks at the end of the reporting period.
If NAV prices had been 1% higher/lower:
• profit for the year ended March 31, 2022 would increase/decrease by Rs. 71.02 Crores (for the year ended March 31, 2021
Rs. 74.71 crores).
Interest rate risk

The Company has lease liabilities which have been accounted with incremental borrowing rate and are therefore not subject to
interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a
change in market interest rates.
Liquidity risk
Liquidity risk represents the inability of the Company to meet its financial obligations within stipulated time. To mitigate this risk,
the Company maintains sufficient liquidity by way of readily convertible instruments and working capital limits from banks.
Maturity profile of financial liabilities:

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date on
undiscounted basis.

Particulars
Less than 1 year 1 year to 5 year More than 5 year Total
(i) Trade payables 4,260.34 - - 4,260.34
(ii) Other financial liabilities 133.75 128.83 45.47 308.05
(iii) Lease liabilities 34.16 121.49 64.29 219.94

Particulars
(i) Trade payables 5,204.61 - - 5,204.61
(ii) Other financial liabilities 159.53 80.37 87.67 327.57
(iii) Lease liabilities 29.48 104.41 80.18 214.07
The surplus funds with the Company and operational cash flows will be sufficient to dispose the financial liabilities with in the
maturity period.
23
42. EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY (CSR)

For the year ended
For the year ended
March 31, 2022
Amount required to be spent by the Company during the year 97.06
87.22
Amount of expenditure incurred 68.35
87.85
Total of previous years shortfall * 31.38
-
Shortfall at the end of the year - -
Nature of CSR activities Promoting education; promoting gender
equality and empowering women;
disaster management including relief,
rehabilitation and reconstruction
activities; ensuring environmental
sustainability and ecological balance;
rural development projects;
eradicating
hunger, poverty and malnutrition
Details of related party transactions (Refer Note 36 Related Party Transactions) 12.10
23.84
NA
Where a provision is made with respect to a liability incurred by entering into a contractual obligation, NA
the movements in the provision during the year should be shown separately
* The Company had contributed Rs. 31.38 Crores in year ended March 31, 2020 towards PM Cares fund which was carried forward for set-off in the
financial year March 31, 2021, based on communication released by Ministry of Corporate affairs.
43. The Company has sanctioned borrowing facilities, comprising fund based and non-fund based limits from various bankers
on unsecured basis.
44. Following are analytical ratios for the year ended March 31, 2022 and March 31, 2021:
Ratio
Numerator Denominator March 31, 2022 March 31, 2021 % Variance
Current ratio Current assets Current liabilities 1.99 1.79 11.25%
Debt equity ratio Total Debt (including lease Shareholder’s Equity 0.01 0.01 8.25%
liabilities)
Debt service
coverage ratio Earnings available for debt Debt payments including lease 96.46 88.69 8.76%
service = Net profit after taxes payments during the year
+ Depreciation + Finance cost
Return on equity Net profit after taxes Average shareholder's equity 15.96% 20.21% -21.00%
Inventory turnover
Cost of goods sold includes Average Inventory 16.07 16.99 -5.43%
ratio
cost of raw material consumed,
purchase of stock in trade
and change in inventories of
finished goods, stock in trade
and work-in-progress
Trade receivables Sale of products + Average Trade receivables 12.13 15.04 -19.36%
turnover ratio income from services
Trade payables Purchase of stock in trade + Average Trade Payables 4.91 6.00 -18.20%
turnover ratio Purchase raw material and
components - cash discount +
Other expenses
Net capital turnover Revenue from operations Average Working capital 5.92 6.73 -12.06%
ratio (Current assets - current
liabilities)
Net profit after taxes Total income 8.30% 9.45% -12.15%
Net profit ratio
Return on capital Earnings before interest and Capital employed = Tangible net 20.06% 24.90% -19.45%
employed (ROCE) taxes worth + Total debt + deferred
tax
liability
Return on
investment (ROI) Income generated from Investments carried at 4.81% 5.81% -17.27%
investments carried at FVTPL FVTPL and amortised cost


45. CHANGE IN CLASSIFICATION

Pursuant to amendment in Schedule III to the Companies Act, 2013, effective from April 1, 2021, the Company has modified
the classification of security deposits from “Loans” to “Others” in financial assets. Comparative amounts in the notes to the
standalone financial statements were reclassified for consistency.
As per earlier Revised

Difference
reported classification
Assets
Non current assets
Financial assets
Loans 52.23 16.73 (35.50)
- 35.50 35.50
Others
Current assets
Financial assets
36.94 22.95 (13.99)
Loans
357.53 371.52 13.99
Others
46. ADDITIONAL INFORMATION

(i) No proceeding has been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.
(iii) The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.
(iv) There are no transaction which has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961.
(v) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
(vi) There are no funds which 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 persons or entities, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the Company or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
23
46. ADDITIONAL INFORMATION (CONTD..)

(vii) There are no funds which have been received by the Company from any persons or entities, including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall:
a) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate
Beneficiaries”) by or on behalf of the Funding Party or
b) provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(viii) The Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) has one CICs as part
of the Group.
DIN: 00004223 DIN: 02106990


Date: May 03, 2022 Date: May 03, 2022

Independent Auditors’ Report
To the Members of Hero MotoCorp Limited

of its consolidated profit and other comprehensive loss,
consolidated changes in equity and consolidated cash flows
REPORT ON THE AUDIT OF THE for the year then ended.
CONSOLIDATED FINANCIAL
Basis for Opinion
STATEMENTS We conducted our audit in accordance with the Standards
Opinion on Auditing (SAs) specified under section 143(10) of the
We have audited the consolidated financial statements of Act. Our responsibilities under those SAs are further
Hero MotoCorp Limited (hereinafter referred to as the ‘Holding described in the Auditor’s Responsibilities for the Audit of the
Company’ or the ‘Company’) and its subsidiaries (Holding Consolidated Financial Statements section of our report. We
Company and its subsidiaries together referred to as “the are independent of the Group and its associates in accordance
Group”) and its associates, which comprise the consolidated with the ethical requirements that are relevant to our audit of
balance sheet as at March 31, 2022, and the consolidated the consolidated financial statements in terms of the Code of
statement of profit and loss (including other comprehensive Ethics issued by the Institute of Chartered Accountants of India
income), the consolidated statement of changes in equity and and the relevant provisions of the Act, and we have fulfilled
the consolidated statement of cash flows for the year then our other ethical responsibilities in accordance with these
ended, and notes to the consolidated financial statements, requirements. We believe that the audit evidence obtained by
including a summary of significant accounting policies and us along with the consideration of audit reports of the other
other explanatory information (hereinafter referred to as “the auditors referred to in paragraph (a) of the “Other Matters”
consolidated financial statements”). section below, is sufficient and appropriate to provide a basis
for our opinion on the consolidated financial statements.
In our opinion and to the best of our information and according
to the explanations given to us, and based on the consideration Emphasis of matter
of reports of other auditors on separate financial statements/ Attention is invited to note 36(c) of the consolidated financial
financial information of such subsidiaries and associates as statements, relating to the search carried out by the Income
were audited by the other auditors, the aforesaid consolidated Tax Department in March 2022 concerning the Company. Since
financial statements give the information required by the the investigation and related proceedings are pending, there
Companies Act, 2013 (“Act”) in the manner so required and is uncertainty as regards impact, if any, of the outcome of the
give a true and fair view in conformity with the accounting proceedings, which cannot be ascertained at this point of time.
principles generally accepted in India, of the consolidated state
of affairs of the Group and its associates as at March 31, 2022, Our opinion is not modified in respect of this matter.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
S. No. The key audit matter How the matter was addressed in our audit
1. Government Grants attached to grants have been met and whether there is
(Refer note 3.5 and 4 (f) to the consolidated

financial statements)
The Company obtains various grants from Government

authorities in connection with manufacturing and sales
of two wheelers. There are certain specific conditions
and approval requirement attached to the grants.
Management evaluates, at the end of each reporting

period, whether the Company has complied with the
relevant conditions attached to each grant and whether
there is a reasonable assurance that the grants will be
received, in order to determine the timing and amounts
of grants to be recognized in the financial statements.
We identified the recognition of government grants as

a key audit matter because of the significance of the
amount of grants and due to significant management
judgement involved in assessing whether the conditions
23
In view of the significance of the matter, we applied the • inspected/evaluated, on a sample basis, documents relating to the grants
following audit procedures in this area, among others to given by the various government authorities and identifying the specific
obtain sufficient appropriate audit evidence: conditions and approval requirements attached to the respective grants;
• assessed the appropriateness of the accounting policy for
government grants • evaluated the basis of management’s judgement regarding fulfilment of
conditions attached to the grants and reasonable assurance that grants will
as per the relevant accounting standard;
be received. This included examining, on a sample basis, the terms of the
• evaluated the design and implementation of the underlying documentation, correspondence with the government authorities
Company’s key internal financial controls over
and whether corresponding sales were made in respect of such grants;
recognition of government grants and tested the
operating effectiveness of such controls on selected • assessed the adequacy and appropriateness of the disclosures made in
transactions; accordance with the relevant accounting standard.
reasonable assurance that grants will be received.

INFORMATION OTHER THAN THE Board of Directors of the Holding Company, as aforesaid.
STATEMENTS AND AUDITOR’S REPORT
THEREON
The Holding Company’s Management and Board of Directors
are responsible for the other information. The other information
comprises the information included in the Holding Company’s
annual report, but does not include the consolidated financial
statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not

cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial

statements, our responsibility is to read the other information
and, in doing so, consider whether the other information
is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the
work we have performed and based on the work done/audit
report of other auditors, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
MANAGEMENT’S AND BOARD OF DIRECTORS’

RESPONSIBILITIES FOR THE CONSOLIDATED
The Holding Company’s Management and Board of Directors
are responsible for the preparation and presentation of
these consolidated financial statements in term of the
requirements of the Act that give a true and fair view of the
consolidated state of affairs, consolidated profit/loss and
other comprehensive income, consolidated statement of
changes in equity and consolidated cash flows of the Group
including its associates in accordance with the accounting
principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under section 133 of
the Act. The respective Management and Board of Directors of
the companies included in the Group and of its associates are
responsible for maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding
the assets of each company and for preventing and detecting
frauds and other irregularities; the selection and application
of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the consolidated
financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error,
which have been used for the purpose of preparation of the
consolidated financial statements by the Management and

In preparing the consolidated financial statements, the
respective Management and Board of Directors of the
companies included in the Group and of its associates are
responsible for assessing the ability of each company to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis
of accounting unless the respective Board of Directors
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included

in the Group and of its associates is responsible for
overseeing the financial reporting process of each company.
AUDITOR’S RESPONSIBILITIES
FOR THE AUDIT OF THE
STATEMENTS
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or
in the aggregate,
they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated
As part of an audit in accordance with SAs, we exercise

professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of

the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures
responsive
to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one
resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section
143(3)
(i)of the Act, we are also responsible for expressing
our opinion on whether the company has adequate
internal financial controls with reference to the
consolidated financial statements and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Management and
Board of Directors.
23
• Conclude on the appropriateness of the Management

and Board of Directors use of the going concern basis statements of the current period and are therefore the key
of accounting in preparation of consolidated financial audit matters. We describe these matters in our auditors’
statements and, based on the audit evidence obtained, report unless law or regulation precludes public disclosure
whether a material uncertainty exists related to events about the matter or when, in extremely rare circumstances,
or conditions that may cast significant doubt on the we determine that a matter should not be communicated in
appropriateness of this assumption. If we conclude that our report because the adverse consequences of doing so
a material uncertainty exists, we are required to draw would reasonably be expected to outweigh the public interest
benefits of such communication.
attention in our auditor’s report to the related disclosures in
the consolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are OTHER MATTERS
based on the audit evidence obtained up to the date of our
(a) We did not audit the financial statements/financial
auditor’s report. However, future events or conditions may information of five subsidiaries, whose financial
cause the Group and its associates to cease to continue statements/financial information reflect total assets
as a going concern. (before consolidation adjustments) of Rs. 1,382.07
• Evaluate the overall presentation, structure and content crores as at March 31, 2022, total revenues (before
of the consolidated financial statements, including the consolidation adjustments) of Rs. 1,161.92 crores
disclosures, and whether the consolidated financial and total net profit after tax (before consolidation
statements represent the underlying transactions and adjustments) of Rs. 50.99 crores and net cash outflows
events in a manner that achieves fair presentation. (before consolidation adjustments) amounting to
Rs. 24.51 crores for the year ended on that date, as
• Obtain sufficient appropriate audit evidence regarding considered in the consolidated financial statements.
the financial statements/financial information of such
The consolidated financial statements also include the
entities or business activities within the Group and its
Group’s share of net loss (and other comprehensive
associates to express an opinion on the consolidated
income) (before consolidation adjustments) of Rs. 199.24
financial statements. We are responsible for the direction, crores for the year ended March 31, 2022, in respect of
supervision and performance of the audit of the financial
two associates, whose financial statements/financial
statements/financial information of such entities included
information have not been audited by us. These financial
in the consolidated financial statements of which we are the
statements/financial information have been audited by
independent auditors. For the other entities included in the
other auditors whose reports have been furnished to us
consolidated financial statements, which have been audited
by the Management and our opinion on the consolidated
by other auditors, such other auditors remain responsible
financial statements, in so far as it relates to the amounts
for the direction, supervision and performance of the audits
and disclosures included in respect of these subsidiaries
carried out by them. We remain solely responsible for our
and associates, and our report in terms of sub-section
audit opinion. Our responsibilities in this regard are further
(3) of Section 143 of the Act, in so far as it relates to the
described in paragraph (a) of the section titled “Other
aforesaid subsidiaries and associates is based solely on
Matters” in this audit report. the audit reports of the other auditors.
We communicate with those charged with governance of Certain of these subsidiaries are located outside
the Holding Company and such other entities included in India whose financial statements and other financial
the consolidated financial statements of which we are the information have been prepared in accordance with
independent auditors regarding, among other matters, the accounting principles generally accepted in their
planned scope and timing of the audit and significant audit respective countries and which have been audited
findings, including any significant deficiencies in internal by other auditors under generally accepted auditing
control that we identify during our audit.
standards applicable in their respective countries. The
Holding Company’s management has converted the
We also provide those charged with governance with a financial statements of such subsidiaries located outside
statement that we have complied with relevant ethical
India from accounting principles generally accepted
requirements regarding independence, and to communicate
in their respective countries to accounting principles
with them all relationships and other matters that may
generally accepted in India. We have audited these
reasonably be thought to bear on our independence, and
conversion adjustments made by the Holding Company’s
where applicable, related safeguards.
management. Our opinion in so far as it relates to the
balances and affairs of such subsidiaries located outside
From the matters communicated with those charged with India is based on the report of other auditors and the
governance, we determine those matters that were of
conversion adjustments prepared by the management
most significance in the audit of the consolidated financial
of the Holding Company and audited by us.

Our opinion on the consolidated financial statements, and of the Act.
our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matters with
respect to our reliance on the work done and the reports of
the other auditors.
REPORT ON OTHER LEGAL AND

REGULATORY REQUIREMENTS
A. As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”) issued by the Central Government of
India in terms of Section 143 (11) of the Act, we give in
the “Annexure A” a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
B. As required by Section 143(3) of the Act, based on our

audit and on the consideration of reports of the other
auditors on separate/consolidated financial statements
of such subsidiaries and associates as were audited by
other auditors, as noted in the ‘Other Matters’ paragraph,
we report, to the extent applicable, that:
a) We have sought and obtained all the information and

explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit
of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as

required by law relating to preparation of the
aforesaid consolidated financial statements have
been kept so far as it appears from our
examination of those books and the reports of the
other auditors.
c) The consolidated balance sheet, the consolidated

statement of profit and loss (including other
comprehensive income), the consolidated statement
of changes in equity and the consolidated statement
of cash flows dealt with by this Report are in
agreement with the relevant books of account
maintained for the purpose of preparation of the
consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial

statements comply with the Ind AS specified under
section 133 of the Act.
e) On the basis of the written representations received

from the directors of the Holding Company as on
March 31, 2022 taken on record by the Board of
Directors of the Holding Company and the reports
of the statutory auditors of its subsidiary company
and associate companies incorporated in India,
none of the directors of the Group companies
and its associate companies incorporated in India
is disqualified as on March 31, 2022 from being
appointed as a director in terms of Section 164(2)

f) With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Holding Company, its subsidiary
companies and associate companies incorporated in
India and the operating effectiveness of such
controls, refer to our separate Report in “Annexure
B”.
C. With respect to the other matters to be included in

the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditor’s) Rules, 2014,
in our opinion and to the best of our information
and
according to the explanations given to us and based
on the consideration of the reports of the other
auditors on separate financial statements of the
subsidiaries and associates, incorporated in India, as
noted in the ‘Other Matters’ paragraph:
a. The consolidated financial statements disclose

the impact of pending litigations as at March 31,
2022 on the consolidated financial position of
the Group and its associates. Refer Note 36 to
the consolidated financial statements.
b. The Group and one of its associates did not have

any material foreseeable losses on long-term
contracts including derivative contracts during the
year ended March 31, 2022. Provision has been
made by the other associate in its financial
statements.
c. There has been no delay in transferring amounts to

the Investor Education and Protection Fund by the
Holding Company or its subsidiary company and
associate companies incorporated in India during
the year ended March 31, 2022.
d. (i) The management has represented that, to

the best of its knowledge and belief, no
funds have been advanced or loaned or
invested
(either from borrowed funds or share
premium or any other sources or kind of
funds) by the Holding Company or its
subsidiary company
or associate companies incorporated in India
to or in any other persons or entities,
including foreign entities (“Intermediaries”),
with the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall:
• directly or indirectly lend or invest in other

persons or entities identified in any
manner whatsoever (“Ultimate
Beneficiaries”) by
or on behalf of the Holding Company
or its subsidiary company or its
associate companies incorporated in
India or
• provide any guarantee, security or the like
to or on behalf of the Ultimate Beneficiaries.
23
(ii) The management has represented, that, to the

best of its knowledge and belief, no funds have D. With respect to the matter to be included in the Auditor’s
been received by the Holding Company or its report under section 197(16):
subsidiary company or associate companies
incorporated in India from any persons or In our opinion and according to the information and
explanations given to us and based on the reports of
entities, including foreign entities (“Funding
the statutory auditors of such associate companies
Parties”), with the understanding, whether
incorporated in India which were not audited by us, the
recorded in writing or otherwise, that the
Holding Company or its subsidiary company or remuneration paid during the current year by the Holding
Company, one of its subsidiary company and its associate
associate companies incorporated in India shall:
companies to its directors is in accordance with the
provisions of Section 197 of the Act. The remuneration
• directly or indirectly, lend or invest in other
persons or entities identified in any manner paid to any director by the Holding Company, its
whatsoever (“Ultimate Beneficiaries”) by or subsidiary company and its associate companies is
on behalf of the Funding Parties or not in excess of the limit laid down under Section 197
of the Act. The Ministry of Corporate Affairs has not
• provide any guarantee, security prescribed other details under Section 197(16) which are
or the like from or on behalf of the required to be commented upon by us.
Ultimate Beneficiaries.
(iii) Based on such audit procedures as

considered reasonable and appropriate in
For B S R & Co. LLP
the circumstances, nothing has come to our
notice that has caused us to believe that the Chartered Accountants
representations under sub-clause (d) (i) and (d) ICAI Firm registration No.:
(ii) contain any material mis-statement. 101248W/W-100022
Refer note 45 (vi) and 45 (vii) to the Vikram Advani

consolidated financial statements. Partner
(iv) In our opinion and based on the consideration
of reports of other auditors, the dividend Date: May 03, 2022 UDIN: 22091765AIIFQL4657
declared or paid during the year by the Holding
Company and its subsidiary company and
associate companies incorporated in India,
wherever applicable, is in compliance with
Section 123 of the Act.

Annexure A referred to in the Independent Auditors’ Report
to the Members of Hero MotoCorp Limited on the consolidated financial statements for the year ended 31 March 2022 (Referred
to in our report of even date)
In our opinion and according to the information and explanations given to us, there are no unfavorable or qualifications or
adverse remarks in the Companies (Auditor’s Report) Order, 2020 reports of the Holding Company and its subsidiary company
incorporated in India:
Sr Name CIN Holding Company/subsidiary/Associate/Joint Venture

.
No.
1 Hero MotoCorp Limited L35911DL1984PLC017354 Holding Company
2 HMC MM Auto Limited U35923DL2013PLC260142 Subsidiary
According to the information and explanations given to us, the following associate companies incorporated in India and included
in the consolidated financial statements, have unfavorable remarks, qualifications or adverse remarks given by the respective
auditors in their reports under the Companies (Auditor’s Report) Order, 2020.
Sr. Holding Company/subsidiary/ Clause number of the CARO report which is

Name CIN
No. Associate/Joint Venture qualified or adverse
1 Hero FinCorp Limited U74899DL1991PLC046774 Associate Clause iii (c), xi (a), xiv (b) of annexure B to the
Independent Auditor’s report
2 Ather Energy Private Limited U40100KA2013PTC093769 Associate Clause xvii, xviii and xix of annexure B to the
Independent Auditor’s report
For B S R & Co. LLP

Vikram Advani
Partner
Date: May 03, 2022 UDIN: 22091765AIIFQL4657


on the consolidated financial statements of Hero MotoCorp Limited for the period ended 31 March 2022
Report on the internal financial controls with reference

to the aforesaid consolidated financial statements under respective Company considering the essential components
of internal control stated in the Guidance Note. These
Clause (i) of Sub-section 3 of Section 143 of the Companies
responsibilities include the design, implementation and
Act, 2013
maintenance of adequate internal financial controls that were
(Referred to in paragraph B(f) under ‘Report on Other Legal operating effectively for ensuring the orderly and efficient
and Regulatory Requirements’ section of our report of conduct of its business, including adherence to the respective
even date) company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely
OPINION preparation of reliable financial information, as required under
In conjunction with our audit of the consolidated financial the Companies Act, 2013 (hereinafter referred to as “the Act”).
statements of the Company as of and for the year ended
March 31, 2022 we have audited the internal financial controls
with reference to consolidated financial statements of Hero
AUDITORS’ RESPONSIBILITY
MotoCorp Limited (hereinafter referred to as “the Holding Our responsibility is to express an opinion on the internal
Company”) and such companies incorporated in India under financial controls with reference to the consolidated financial
the Companies Act, 2013 which are its subsidiary company, statements based on our audit. We conducted our audit in
and its associate companies, as of that date. accordance with the Guidance Note and the Standards on
Auditing, prescribed under section 143(10) of the Act, to the
extent applicable to an audit of internal financial controls
In our opinion, the Holding Company and such companies
incorporated in India which are its subsidiary company, and its with reference to consolidated financial statements. Those
associate companies, have, in all material respects, adequate Standards and the Guidance Note require that we comply
internal financial controls with reference to the consolidated with ethical requirements and plan and perform the audit to
financial statements and such internal financial controls obtain reasonable assurance about whether adequate internal
were operating effectively as at March 31, 2022, based on financial controls with reference to the consolidated financial
the internal financial controls with reference to consolidated statements were established and maintained and if such
financial statements criteria established by such companies controls operated effectively in all material respects.
considering the essential components of such internal controls
stated in the Guidance Note on Audit of Internal Financial Our audit involves performing procedures to obtain audit
Controls Over Financial Reporting issued by the Institute of evidence about the adequacy of the internal financial controls
Chartered Accountants of India (the “Guidance Note”). with reference to the consolidated financial statements
and their operating effectiveness. Our audit of internal
financial controls with reference to consolidated financial
MANAGEMENT’S AND THE BOARD statements included obtaining an understanding of internal
OF DIRECTORS’ RESPONSIBILITY financial controls with reference to the consolidated financial
statements, assessing the risk that a material weakness
FOR INTERNAL FINANCIAL exists, and testing and evaluating the design and operating
CONTROLS effectiveness of the internal controls based on the assessed
risk. The procedures selected depend on the auditor’s
The respective Company’s management and the Board of judgement, including the assessment of the risks of material
Directors are responsible for establishing and maintaining
misstatement of the consolidated financial statements,
internal financial controls with reference to consolidated
whether due to fraud or error.
financial statements based on the criteria established by the
24
We believe that the audit evidence we have obtained and the
audit evidence obtained by the other auditors of the relevant INHERENT LIMITATIONS OF INTERNAL
associate companies in terms of their reports referred to in the
Other Matters paragraph below, is sufficient and appropriate
FINANCIAL CONTROLS WITH REFERENCE TO
to provide a basis for our audit opinion on the internal financial CONSOLIDATED FINANCIAL STATEMENTS
controls with reference to consolidated financial statements. Because of the inherent limitations of internal financial
controls with reference to consolidated financial statements,
MEANING OF INTERNAL FINANCIAL including the possibility of collusion or improper management
override of controls, material misstatements due to error or
CONTROLS WITH REFERENCE TO fraud may occur and not be detected. Also, projections of any
CONSOLIDATED FINANCIAL STATEMENTS evaluation of the internal financial controls with reference to
consolidated financial statements to future periods are subject
A company's internal financial controls with reference to to the risk that the internal financial controls with reference
consolidated financial statements is a process designed to
provide reasonable assurance regarding the reliability of to consolidated financial statements may become inadequate
because of changes in conditions, or that the degree of
financial reporting and the preparation of financial statements
compliance with the policies or procedures may deteriorate.
for external purposes in accordance with generally accepted
accounting principles. A company's internal financial controls
with reference to the consolidated financial statements OTHER MATTERS
includes those policies and procedures that (1) pertain to the Our aforesaid reports under Section 143(3)(i) of the Act on
maintenance of records that, in reasonable detail, accurately the adequacy and operating effectiveness of the internal
and fairly reflect the transactions and dispositions of the financial controls with reference to consolidated financial
assets of the company; (2) provide reasonable assurance that statements insofar as it relates to two associate companies,
transactions are recorded as necessary to permit preparation which are companies incorporated in India, is based on the
of financial statements in accordance with generally accepted corresponding reports of the auditors of such companies
accounting principles, and that receipts and expenditures incorporated in India.
of the company are being made only in accordance with
authorisations of management and directors of the
company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, For B S R & Co. LLP
use, or disposition of the company’s assets that could have a Chartered Accountants
material effect on the financial statements. ICAI Firm registration No.: 101248W/W-100022
Vikram Advani
Partner
Date: May 03, 2022 UDIN: 22091765AIIFQL4657

Consolidated Balance Sheet


As at As at
Particulars Note
March 31, 2022 March 31, 2021
ASSETS
Non-current assets
(a) Property, plant and equipment 5 5,354.34 5,550.67
(b) Capital work-in-progress 6 149.13 236.40
(c) Right of use of assets 7 517.90 511.24
(d) Other Intangible assets 7A 321.30 318.48
(e) Intangible assets under development 8 368.09 258.73
(f) Equity accounted investments in associates 9A 2,202.51 2,407.69
(g) Financial assets
(i) Investments 9B 2,455.05 1,948.59
(ii) Loans 10 17.43 16.73
(iii) Others 11 42.01 35.91
(h) Income tax assets (net)
12 358.07 378.49
(i) Other non-current assets
Total Non - Current Assets 13 120.34 62.68
Current assets 11,906.17 11,725.61
(a) Inventories 14 1,472.41 1,789.27
(b) Financial assets
(i) Investments 9B 5,870.31 6,225.34
(ii) Trade receivables 15 2,158.49 2,274.68
(iii) Cash and cash equivalents 16 181.02 274.62
(iv) Bank balances other than (iii) above 17 118.72 121.62
(v) Loans 10 22.81 22.95
(vi) Others 11 475.00 382.55
(c) Other current assets
13 273.46 279.45
Total Current Assets 10,572.22 11,370.48
Total Assets 22,478.39 23,096.09
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 18 39.96 39.96
(b) Other equity 19 15,806.69 15,376.46
Total Equity attributable to owners of the Company 15,846.65 15,416.42
Non-controlling interests 20 148.05 143.19
Total Equity 15,994.70 15,559.61
LIABILITIES
Non-current liabilities
(i) Borrowings 21 36.17 45.18
(ii) Lease liabilities 7 215.51 212.42
(iii) Other financial liabilities 155.04 146.04
(b) Provisions 22 181.13 175.57
(c) Deferred tax liabilities (net) 23 378.21 452.74
Total Non - Current Liabilities 966.06 1,031.95
Current liabilities
(i) Borrowings 21 317.31 296.85
(ii) Lease liabilities 7 36.18 29.57
(iii) Trade payables 24
Total outstanding dues of micro and small enterprises
26.19 16.68
Total outstanding dues of creditors other than micro and small enterprises
(iv) Other Financial liabilities 4,316.90 5,247.50
(b) Other current liabilities 25 145.58 167.52
(c) Provisions 26 496.32 570.59
Total Current Liabilities 22 179.15 175.82
Total Equity and Liabilities 5,517.63 6,504.53
The notes referred to above form an integral part of the consolidated financials statements 22,478.39 23,096.09
1 - 45

As per ourAccountants
Chartered report of even date attached For and on behalf of the Board of Directors of
For B S R & Co. LLP

DIN: 00004223 DIN: 02106990
UDIN: 22091765AIIFQL4657

Date: May 03, 2022 Date: May 03, 2022
24
Consolidated Statement of Profit and Loss
For the year ended March 31, 2022

Particulars Note
March 31, 2022 March 31, 2021
Income
Revenue from operations 27 29,551.28 30,959.19
Other income 28 555.01 557.90
Total Income 30,106.29 31,517.09
Expenses
Cost of materials consumed 29 20,845.74 21,968.04
Purchase of stock in trade 45.95 31.14
Change in inventories of finished goods, stock-in-trade and work-in-progress 30 28.67 (255.57)
Employee benefit expenses 31 1,995.78 1,951.02
Finance costs 32 53.10 46.41
Depreciation and amortisation expenses 5, 7 and 7A 689.52 715.12
Other expenses 33 3,190.37 3,165.05
Total expenses 26,849.13 27,621.21
Profit before share of loss of associates and tax 3,257.16 3,895.88
Loss from associates
Share in loss of associates (199.05) (46.56)
(199.05) (46.56)
Tax expense 34
Current tax
Deferred tax 805.44 931.38
Total tax expense (76.38) (18.11)
Net profit after taxes and share of loss of associates 729.06 913.27
Other comprehensive income 2,329.05 2,936.05
Items that will not be reclassified subsequently to profit or loss:-
Re-measurement losses on defined benefit plans
Income tax effect (7.22) (28.16)
34 1.83 7.08
Share of Other comprehensive income of associate, to the extent not be reclassified to profit or loss (0.89) 0.27
(6.28) (20.81)
Items that will be reclassified to profit or loss:-
Exchange differences in translating the financial statements of foreign operations
Income tax effect 7.53 (6.79)
34 (1.85) 1.73
Total other comprehensive income, net of tax 5.68 (5.06)
Total comprehensive income for the year, net of tax (0.60) (25.87)
Net Profit for the year attributable to: 2,328.45 2,910.18
- Owners of the Company
- Non-controlling interests 2,316.88 2,917.75
12.17 18.30
Other Comprehensive income for the year attributable to: 2,329.05 2,936.05
- Owners of the Company
- Non-controlling interests
(2.44) (24.01)
Total Comprehensive income for the year attributable to: 1.84 (1.86)
- Owners of the Company (0.60) (25.87)
- Non-controlling interests
2,314.44 2,893.74
Earnings per share (Nominal Value of Rs. 2 each) in Rs. 14.01 16.44
(a) Basic 2,328.45 2,910.18
(b) Diluted 35
The notes referred to above form an integral part of the consolidated financials statements 115.96 146.07
115.93 146.04
1 - 45
As per our report of even date attached Hero MotoCorp

For and Limited
on behalf of the Board of Directors of
For B S R &
Chartered Co. LLP
Accountants

DIN: 00004223 DIN: 02106990


Date: May 03, 2022 Date: May 03, 2022

Consolidated Statement of Cash Flows


A. CASH FLOW FROM OPERATING ACTIVITIES
Profit after tax and share of loss of associates 2,329.05 2,936.05
Adjustments for:
Add: Depreciation and amortisation expense 689.52 715.12
Tax expense 729.06 913.27
Loss on property, plant and equipments sold/discarded 10.23 4.67
Finance cost 53.10 46.41
Employee Stock Compensation Cost 10.00 8.86
Loss allowance on advances 52.24 -
1,544.89 1,735.23
Less: Interest income on financial assets carried at amortised cost 189.05 100.42
Dividend income 1.67 1.39
Profit on sale of investments 109.11 169.07
Gain on investments carried at fair value through profit or loss 223.82 285.77
Share of profit/(loss) in associates (199.05) (46.56)
Profit on sale of property, plant and equipments 0.62 0.89
Net Foreign currency translation (7.53) 6.79
317.69 517.77
Operating profit before working capital changes 3,556.25 4,153.51
Changes in working capital:
Adjustment for (increase)/decrease in operating assets:
Inventories 316.86 (506.95)
Trade receivables 115.45 (809.67)
Loans – Current 0.14 (16.02)
Loans – Non-Current (0.70) 5.42
Other financial assets (66.89) 11.22
Other current assets (46.25) 43.19
Other non-current assets 3.08 (3.57)
321.69 (1,276.38)
Adjustment for increase/(decrease) in operating liabilities:
Trade payables (921.09) 2,136.56
Other financial liabilities 3.53 (1.23)
Other current liabilities (74.27) 39.13
Current provisions (3.89) (12.03)
Non-current provisions 5.56 51.67
(990.16) 2,214.10
Cash generated from operations 2,887.78 5,091.23
Less: Direct taxes paid (net of refund) 784.08 980.78
Net cash generated from operating activities 2,103.70 4,110.45
B. CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure on property, plant and equipment, intangible assets, (569.66) (581.02)
capital work-in-progress and intangible assets under development
including
capital advances 10.82 7.18
Proceeds from sale of property, plant and equipment (9.82) 0.69
Deposits (made)/withdrawn 42,437.49 47,929.45
Sale of investments (42,105.10) (49,388.54)
Purchase of investments 5.24 12.76
Dividend income received from associates (150.00) (368.37)
Investment in associates 157.39 97.14
Interest income on financial assets carried at amortised cost 1.67 1.39
Dividend income (221.97) (2,289.32)
Net cash used in investing activities
24
Consolidated Statement of Cash Flows

C. CASH FLOW FROM FINANCING ACTIVITIES
Interest paid (52.85) (46.19)
Repayment of lease liabilities (30.58) (29.17)
(1,907.27) (1,918.30)
Dividend paid
(1.12) (2.50)
Tax on dividend
- 6.65
Additions to minority interest
5.04 7.83
Proceeds from issue of equity share capital (including securities premium)
(9.01) 1.16
(Repayment)/proceeds of non current borrowings
20.46 128.70
Proceeds of current borrowings
(1,975.33) (1,851.82)
Net cash used in financing activities
(93.60) (30.69)
D. DECREASE IN CASH AND CASH EQUIVALENTS (A+B+C)
274.62 305.31
Cash and cash equivalents at the beginning of the year
181.02 274.62
Cash and cash equivalents at the end of the year
Current
Interest
Borrowings
Non-current expense on
Movement of Borrowings (including Total
Borrowings financial
current
liabilities
maturities)
As on March 31, 2021 45.18 296.85 0.39 342.42
Cash Flows (net) (9.01) 20.46 (52.85) (41.40)
Non Cash:
Interest expenses - - 53.10 53.10
As on March 31, 2022 36.17 317.31 0.64 354.12
Notes:
i. The consolidated statement of cash flow has been prepared in accordance with 'Indirect method' as set out in Ind AS - 7 'Statement of Cash Flows' as
notified under section 133 of companies act, 2013, read with the relevant rules there under.
ii. Refer note 33 for the disclosure related to corporate social responsibility expense.
iii. Also refer to note 7 for reconciliation of cash flows from lease liabilities.
The notes referred to above form an integral part of the consolidated financial statements 1 - 45
As per our report of even date attached For and on behalf of the Board of Directors
of For B S R & Co. LLP Hero MotoCorp Limited
DIN: 00004223 DIN: 02106990


Date: May 03, 2022 Date: May 03, 2022

Consolidated Statements of Changes in Equity

A. EQUITY SHARE CAPITAL

Number of Shares Amount
Balance as at March 31, 2020 199,739,368 39.95
Changes in equity share capital during the year
Issue of equity shares under employee share option plan (# in absolute INR 81,698) (Note 41) 40,849 0.01
Changes in equity share capital during the year
Issue of equity shares under employee share option plan (# in absolute INR 63,448) (Note 41) 31,724 #
B. OTHER EQUITY*
Reserves and Surplus Exchange
differences Total
Attributable
Share in translating attributable
to non
Particulars Capital Securities General options Retained the financial to the Total
controlling
reserve premium reserve outstanding earnings statements owners of
interest
account of foreign Company
operations
Balance as at March 31, 2020 # 18.40 2,676.34 15.44 11,652.06 4.09 14,366.33 140.60 14,506.93
Profit for the year - - - - 2,917.75 - 2,917.75 18.30 2,936.05
Addition during the year - - - - - - - 6.65 6.65
Other comprehensive income - - - - (20.81) (3.20) (24.01) (1.86) (25.87)
for the year, net of income tax
Total Comprehensive Income - - - - 2,896.94 (3.20) 2,893.74 23.09 2,916.83
for the year
Transaction with owners,
recorded directly in equity
Charge against share-based - - - 8.86 - - 8.86 - 8.86
payments
Transferred to securities - 5.26 - (5.26) - - - - -
premium on issue of shares
Payment of dividends - - - - (1,897.81) - (1,897.81) (20.50) (1,918.31)
- - - - (2.49) - (2.49) - (2.49)
Tax on dividend
Issue of equity shares under - 7.83 - - - - 7.83 - 7.83
employee share option plan
- - - - 2,316.88 - 2,316.88 12.17 2,329.05
Profit for the year
- - - - - - - - -
Addition during the year
Other comprehensive income - - - - (6.28) 3.84 (2.44) 1.84 (0.60)
for the year, net of income tax
- - - - 2,310.60 3.84 2,314.44 14.01 2,328.45
Total Comprehensive Income
for the year
24
Consolidated Statements of Changes in Equity
Reserves and Surplus Exchange

differences Total
Attributable
Share in translating attributable
to non
Particulars Capital Securities General options Retained the financial to the Total
controlling
reserve premium reserve outstanding earnings statements owners of
interest
account of foreign Company
operations
Transaction with owners,
recorded directly in equity
Charge against share-based - - - 10.00 - - 10.00 - 10.00
payments
Transferred to securities - 4.59 - (4.59) - - - - -
premium on issue of shares
Payment of dividends - - - - (1,898.13) - (1,898.13) (9.15) (1,907.28)
Tax on dividend - - - - (1.12) - (1.12) - (1.12)
Issue of equity shares under - 5.04 - - - - 5.04 - 5.04
employee share option plan
*Purpose of each reserve within Other Equity has been disclosed under Note 19.
#
on shares forfeited (in absolute INR 4,250) and share premium account on forfeited share reissued (in absolute INR 25,500)
The notes referred to above form an integral part of the consolidated financials statements 1-45
DIN: 00004223 DIN: 02106990


Date: May 03, 2022 Date: May 03, 2022

Notes forming part of the Consolidated Financial Statements

1. GENERAL INFORMATION
2.4 Basis of consolidation
Hero MotoCorp Limited (the “Company” or the “Holding
Company”), its subsidiaries (collectively called as “Group”) The consolidated financial statements incorporate
and its associates are engaged in the manufacturing the financial statements of the Company and entities
controlled by the Company. Control is achieved when
and selling of motorised two-wheelers, spare parts
and related services along with providing non-banking the Company:
financial services. The Company is a public company
• has power over the investee;
domiciled and incorporated in India under the provisions
of the Companies Act, 1956 on January 19, 1984. The • is exposed, or has rights, to variable returns from its
Company’s registered office and principal place of involvement with the investee; and
business is The Grand Plaza, Plot No. 2, Nelson Mandela
Road, Vasant Kunj – Phase II, New Delhi – 110070, • has the ability to use its power to affect its returns.
India. The shares of the Company are listed on two stock
exchanges in India i.e. National Stock Exchange (NSE) and The Company reassesses whether or not it controls an
Bombay Stock Exchange (BSE). investee if facts and circumstances indicate that there
are changes to one or more of the three elements of
control listed above.
The consolidated financial statements (or ‘financial
statements’) for the year ended March 31, 2022 were
approved by the Board of Directors and authorised for When the Company has less than a majority of the voting
issue on May 03, 2022. rights of an investee, it has power over the investee when
the voting rights are sufficient to give it the practical
ability to direct the relevant activities of the investee
2. BASIS OF PREPARATION AND unilaterally. The Company considers all relevant facts
PRESENTATION and circumstances in assessing whether or not the
Company's voting rights in an investee are sufficient to
2.1 Statement of Compliance give it power, including:
The consolidated financial statements have been
prepared in accordance with Indian Accounting Standards • the size of the Company's holding of voting rights
(Ind AS) as per the Companies (Indian Accounting relative to the size and dispersion of holdings of the
Standards) Rules, 2015 notified under section 133 of other vote holders;
Companies Act, 2013, (the ‘Act’) and other relevant
provisions of the Act. • Potential voting rights held by the Company, other
vote holders or other parties;
2.2 Basis of measurement • rights arising from other contractual
The financial statements have been prepared on arrangements; and
the historical cost basis except for certain financial
• any additional facts and circumstances that indicate
instruments, net defined benefit asset/ liability and
that the Company has, or does not have, the current
liabilities for equity settled share based payment
ability to direct the relevant activities at the time that
arrangement that are measured at fair values at the end decisions need to be made, including voting patterns at
of each reporting period, as explained in the accounting
previous shareholders' meetings.
policies below.
Consolidation of a subsidiary begins when the Company
These financial statements are presented in Indian obtains control over the subsidiary and ceases when the
Rupee (INR), which is also the Holding Company’s
Company loses control of the subsidiary. Specifically,
functional currency. All amounts have been rounded-off
income and expenses of a subsidiary acquired or disposed
to the nearest crores, upto two decimals unless
of during the year are included in the consolidated
otherwise stated.
statement of profit and loss from the date the Company
gains control until the date when the Company ceases to
2.3 Operating Cycle control the subsidiary.
Based on the nature of products/ activities of the Group,
the normal time between acquisition of assets and their Profit or loss and each component of other
realization in cash or cash equivalents, the Group have comprehensive income are attributed to the owners of
determined its operating cycle as less than 12 months for the Company and to the non-controlling interests. Total
the purpose of classification of its assets and liabilities as comprehensive income of subsidiaries is attributed to
current and non-current. the owners of the Company and to the non-controlling
interests even if this results in the non-controlling
interests having a deficit balance. When necessary,
24
adjustments are made to the financial statements of

subsidiaries to bring their accounting policies into line Loss of control
with the Group's accounting policies. When the group loses control over a subsidiary, it
derecognises the assets and liabilities of the subsidiary,
Non controlling interests (NCI) and any related NCI and other components of equity. Any
interest retained in the former subsidiary is measured at
NCI are measured at their proportionate share of
the acquiree’s net identifiable assets at the date fair value at the date the control is lost. Any resulting gain
of acquisition. or loss is recognised in the statement of profit or loss.
Changes in the Group’s equity interest in a subsidiary All intragroup assets and liabilities, equity, income,
that do not result in a loss of control are accounted for expenses, and cash flows relating to transactions
as equity transactions. between members of the Group are eliminated in full
on consolidation.
Following subsidiary companies have been considered in the preparation of the consolidated financial statements:
% of Holding and voting power

Country of Incorporation either directly or indirectly through
Name of entity Relationship and principal place of Ownership held by subsidiary as at
business
March 31, 2022 March 31, 2021

HMCL Americas Inc. Subsidiary United States of America Company 100% 100%
HMC MM Auto Limited Subsidiary India Company 60% 60%
HMCL Netherlands B.V. Subsidiary Netherlands Company 100% 100%
HMCL Colombia SAS Subsidiary Colombia HMCL Netherlands BV 68% 68%
55% 55%
HMCL Niloy Bangladesh Limited Subsidiary Bangladesh HMCL Netherlands BV
100% 100%
Hero TechCenter Germany GmbH Subsidiary Germany Company
2.5 Investments in associates
An associate is an entity over which the Group has becomes an associate. On acquisition of the investment
significant influence. Significant influence is the power to in an associate, any excess of the cost of the investment
participate in the financial and operating policy decisions over the Group's share of the net fair value of the
of the investee but is not control or joint control over identifiable assets and liabilities of the investee is
those policies. recognised as goodwill, which is included within the
carrying amount of the investment. Any excess of the
The results of associates are incorporated in these Group's share of the net fair value of the identifiable
consolidated financial statements using the equity assets and liabilities over the cost of the investment,
method of accounting, except when the investment, or, after reassessment, is recognised directly in equity as
a portion thereof, is classified as held for sale, in which capital reserve in the period in which the investment
case it is accounted for in accordance with Ind AS 105. is acquired.
Under the equity method, an investment in an associate
is initially recognised in the consolidated balance sheet After application of the equity method of accounting,
at cost and adjusted thereafter to recognise the Group's the Group determines whether there is any objective
share of the profit or loss and other comprehensive evidence of impairment as a result of one or more events
income of the associate. Distributions received from an that occurred after the initial recognition of the net
associate reduce the carrying amount of the investment. investment in an associate and that event (or events) has
When the Group's share of losses of an associate exceeds an impact on the estimated future cash flows from the
the Group's interest in that associate (which includes net investment that can be reliably estimated. If there
any long-term interests that, in substance, form part of exists such an objective evidence of impairment, then it is
the Group's net investment in the associate), the Group necessary to recognise impairment loss with respect to
discontinues recognising its share of further losses. the Group's investment in an associate.
Additional losses are recognised only to the extent that
the Group has incurred legal or constructive obligations or When necessary, the entire carrying amount of the
made payments on behalf of the associate. investment (including goodwill) is tested for impairment
in accordance with Ind AS 36 Impairment of Assets as
An investment in an associate is accounted for using a single asset by comparing its recoverable amount
the equity method from the date on which the investee (higher of value in use and fair value less costs of

disposal) with its carrying amount. Any impairment loss
recognised forms part of the carrying amount
25

of the investment. Any reversal of that impairment

loss is recognised in accordance with Ind AS 36 to the 3. SIGNIFICANT ACCOUNTING POLICIES
extent that the recoverable amount of the investment 3.1 Revenue Recognition
subsequently increases.
Revenue is recognised upon transfer of control of
promised products or services to customers for an
The Group discontinues the use of the equity method amount that reflects the consideration which the Group
from the date when the investment ceases to be an
expects to receive in exchange for those products or
associate, or when the investment is classified as held
services. Revenue excludes taxes or duties collected on
for sale. When the Group retains an interest in the former
behalf of the government
associate and the retained interest is a financial asset,
the Group measures the retained interest at fair value at
that date and the fair value is regarded as its fair value • Revenue from sale of goods is recognised when
control of goods are transferred to the buyer which
on initial recognition in accordance with Ind AS 109. The
is generally on dispatch for domestic sales and on
difference between the carrying amount of the associate
dispatch/ delivery on local port in India for export
at the date the equity method was discontinued, and the
sales; as per the terms of sale.
fair value of any retained interest and any proceeds from
disposing of a part interest in the associate is included in • Revenue from providing services is recognized in the
the determination of the gain or loss on disposal of the accounting period in which services are rendered.
associate. In addition, the Group accounts for all amounts Revenue from service is based on number of services
previously recognised in other comprehensive income in provided to the end of reporting period as a proportion
relation to that associate or joint venture on the same of the total number services to be provided.
basis as would be required if that associate had directly
disposed of the related assets or liabilities. Therefore, if a Revenue is measured based on the transaction price,
gain or loss previously recognised in other comprehensive which is the consideration, adjusted for volume discounts,
income by that associate or joint venture would be performance bonuses, price concessions and incentives,
reclassified to profit or loss on the disposal of the related if any, as specified in the contract with the customer.
assets or liabilities, the Group reclassifies the gain or Revenue also excludes taxes collected from customers.
loss from equity to profit or loss (as a reclassification
adjustment) when the equity method is discontinued. A liability is recognised where payments are received
from customers before transferring control of the goods
When the Group reduces its ownership interest in an being sold or providing services to the customer.
associate but the Group continues to use the equity
method, the Group reclassifies to profit or loss the The Group disaggregates revenue from contracts with
proportion of the gain or loss that had previously been customers by nature of goods and service.
recognised in other comprehensive income relating to
that reduction in ownership interest if that gain or loss Dividend income is recorded when the right to receive
would be reclassified to profit or loss on the disposal of payment is established. Interest income is recognised
the related assets or liabilities. using the effective interest method.
When a group entity transacts with an associate of the 3.2 Leasing

Group, profits and losses resulting from the transactions A contract is, or contains, a lease if the contract conveys
with the associates are recognised in the Group's the right to control the use of an identified asset for a
consolidated financial statements only to the extent period of time in exchange for consideration.
of interests in the associate that are not related to
the Group.
Following associate companies have been considered in the preparation of the consolidated financial statements:
% of Holding and voting power

Country of Incorporation either directly or indirectly through
Name of entity Relationship and principal place of Ownership held by subsidiary as at
business
March 31, 2022 March 31, 2021
Hero FinCorp Limited Associate India Company 41.19% 41.19%
Ather Energy Private Limited Associate India Company 37.65% 38.08%

The Group as lessee

The Group’s lease asset classes primarily consist of using the incremental borrowing rates in the country
leases for land and buildings. The Group assesses of domicile of these leases. Lease liabilities are
whether a contract contains a lease, at inception of a remeasured with a corresponding adjustment to the
contract. A contract is, or contains, a lease if the contract related right of use asset if the Company changes its
conveys the right to control the use of an identified asset assessment if whether it will exercise an extension or a
for a period of time in exchange for consideration. To termination option.
assess whether a contract conveys the right to control
the use of an identified asset, the Group assesses Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
whether: (i) the contract involves the use of an identified
been classified as financing cash flows.
asset (ii) the Group has substantially all of the economic
benefits from use of the asset through the period of the
lease and (iii) the Group has the right to direct the use of Refer note 7A for other disclosures.
the asset.
3.3 Foreign currencies
At the date of commencement of the lease, the In preparing the financial statements of the Group,
Group recognizes a right-of-use asset (“ROU”) and a transactions in currencies other than the Group's
corresponding lease liability for all lease arrangements functional currency (foreign currencies) are recognised
in which it is a lessee, except for leases with a term of at the rates of exchange prevailing at the dates of
twelve months or less (short-term leases) and low value the transactions. At the end of each reporting period,
leases. For these short-term and low value leases, the monetary items denominated in foreign currencies
Group recognizes the lease payments as an operating are translated at the rates prevailing at that date.
expense on a straight-line basis over the term of Non-monetary items that are measured in terms of
the lease. historical cost in a foreign currency are not translated.
Certain lease arrangements includes the options to Exchange differences on monetary items are recognised
extend or terminate the lease before the end of the in the Statement of profit and loss in the period in which
lease term. ROU assets and lease liabilities includes they arise.
these options when it is reasonably certain that they
will be exercised. For the purposes of presenting these consolidated
financial statements, the assets and liabilities of the
The right-of-use assets are initially recognized at cost, Group's foreign operations are translated into Indian
which comprises the initial amount of the lease liability Rupees using exchange rates prevailing at the end of
adjusted for any lease payments made at or prior to the each reporting period. Income and expense items are
commencement date of the lease plus any initial direct translated at the average exchange rates for the period,
costs less any lease incentives. They are subsequently unless exchange rates fluctuate significantly during that
measured at cost less accumulated depreciation and period, in which case exchange rates at the dates of the
impairment losses. transactions are used. Exchange differences arising, if
any, are recognised in other comprehensive income and
Right-of-use assets are depreciated from the accumulated in equity (and attributed to non- controlling
commencement date on a straight-line basis over the interests as appropriate).
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability On the disposal of a foreign operation (i.e. a disposal
whenever events or changes in circumstances indicate of the Group's entire interest in a foreign operation,
that their carrying amounts may not be recoverable. a disposal involving loss of control over a subsidiary
For the purpose of impairment testing, the recoverable that includes a foreign operation, or a partial disposal
amount (i.e. the higher of the fair value less cost to sell of an interest in a joint arrangement or an associate
and the value-in-use) is determined on an individual asset that includes a foreign operation of which the retained
basis unless the asset does not generate cash flows that interest becomes a financial asset), all of the exchange
are largely independent of those from other assets. In differences accumulated in equity in respect of that
such cases, the recoverable amount is determined for the operation attributable to the owners of the Company are
Cash Generating Unit (CGU) to which the asset belongs. reclassified to the statement of profit and loss.
The lease liability is initially measured at amortized In addition, in relation to a partial disposal of a subsidiary
cost at the present value of the future lease payments. that includes a foreign operation that does not result
The lease payments are discounted using the interest in the Group losing control over the subsidiary, the
rate implicit in the lease or, if not readily determinable, proportionate share of accumulated exchange differences
are re-attributed to non-controlling interests and are not


recognised in profit or loss. For all other partial disposals

(i.e. partial disposals of associates or joint arrangements is not reclassified to the statement of profit and loss. Net
that do not result in the Group losing significant interest is calculated by applying the discount rate at the
influence or joint control), the proportionate share of the beginning of the period to the net defined benefit liability
or asset. Defined benefit costs are categorised as follows:
accumulated exchange differences is reclassified to profit
or loss.
• service cost (including current service cost,
past service cost, as well as gains and losses or
3.4 Borrowing costs
curtailments and settlements);
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are • net interest expense or income; and
assets that necessarily take a substantial period of time
• re-measurement
to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are
The Group presents the first two components of
substantially ready for their intended use or sale. defined benefit costs in the statement of profit and
loss in the line item 'Employee benefit expenses' and
Interest income earned on the temporary investment the third component is presented as part of other
of specific borrowings pending their expenditure on comprehensive income.
qualifying assets is deducted from the borrowing costs
eligible for capitalisation.
The retirement benefit obligation recognised in the
balance sheet represents the actual deficit or surplus in
All other borrowing costs are recognised in the statement the Group’s defined benefit plans. Any surplus resulting
of profit and loss in the period in which they are incurred. from this calculation is limited to the present value of any
economic benefits available in the form of refunds from
3.5 Government grants the plan or reductions in future contributions to the plans.
Government grants are not recognised until there is
reasonable assurance that the Group will comply with Short-term employee benefits
the conditions attached to them and that the grants will Liabilities recognised in respect of wages and salaries and
be received. other short-term employee benefits are measured at the
undiscounted amount of the benefits expected to be paid
Government grants are recognised in the statement of in exchange for the related service and are expensed as
profit and loss on a systematic basis over the periods the related services are provided.
in which the Group recognises the related costs as
expenses, if any, for which the grants are intended Other long-term employee benefits
to compensate. Liabilities recognised in respect of other long-term
employee benefits such as long term service awards and
3.6 Employee benefits compensated absences are measured at the present
Defined contribution plans value of the estimated future cash outflows expected
A defined contribution plan is a post-employment benefit to be made by the Group in respect of services provided
plan under which the Group pays fixed contributions into by employees up to the reporting date based on the
a separate entity and will have no legal or constructive actuarial valuation using the projected unit credit method
obligation to pay further amounts. Payments to defined carried out at the year end. Re-measurement gain or
contribution plans are recognised as an expense when losses are recognised in the statement of profit and loss
employees have rendered service entitling them to in the period in which they arise.
the contributions.
3.7 Share-based payment arrangements
Defined benefit plans Equity-settled share-based payments to employees are
For defined benefit plans, the cost of providing benefits is measured at the fair value of the equity instruments at
determined using the projected unit credit method, with the grant date. Details regarding the determination of the
actuarial valuations being carried out at the end of each fair value of equity-settled share-based transactions are
annual reporting period. Re-measurement, comprising set out in note 41.
actuarial gains and losses, and the return on plan assets
(excluding net interest), is reflected immediately in the The fair value determined at the grant date of the equity-
balance sheet with a charge or credit recognised in other settled share-based payments is expensed on a straight-
comprehensive income in the period in which they occur. line basis over the vesting period, based on the Group's
Re-measurement recognised in other comprehensive estimate of equity instruments that will eventually vest,
income is reflected immediately in retained earnings and with a corresponding increase in equity. At the end of
each reporting period, the Group revises its estimate of
25
the number of equity instruments expected to vest. The

impact of the revision of the original estimates, if any, is The measurement of deferred tax liabilities and assets
recognised in the statement of profit and loss such that reflects the tax consequences that would follow from
the cumulative expense reflects the revised estimate, the manner in which the Group expects, at the end of the
with a corresponding adjustment to the Share option’s reporting period, to recover or settle the carrying amount
outstanding account. of its assets and liabilities.
3.8 Taxation Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities
Income tax expense represents the sum of the tax and assets, and they relate to income taxes levied by
currently payable and deferred tax. the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax
Current tax liabilities and assets on a net basis or their tax assets and
The tax currently payable is based on taxable profit for liabilities will be realised simultaneously.
the year. Taxable profit differs from profit before tax as
reported in the consolidated statement of profit and loss
Current and deferred tax are recognised in the statement
because of items of income or expense that are taxable or of profit and loss, except when they relate to items that
deductible in other years and items that are never taxable are recognised in other comprehensive income or directly
or deductible. The Group's current tax is calculated using in equity, in which case, the current and deferred tax are
tax rates that have been enacted by the end of the also recognised in other comprehensive income or directly
reporting period. in equity respectively.
Deferred tax
3.9 Property, plant and equipment
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities Property, plant and equipment (including furniture,
in the consolidated financial statements and the fixtures, vehicles, etc.) held for use in the production
corresponding tax bases used in the computation of or supply of goods or services, or for administrative
taxable profit. Deferred tax liabilities are generally purposes, are stated in the balance sheet at cost less
recognised for all taxable temporary differences. accumulated depreciation and accumulated impairment
losses, if any. Cost of acquisition is inclusive of freight,
Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it duties, taxes and other incidental expenses. Freehold
is probable that taxable profits will be available against land is not depreciated.
which those deductible temporary differences can
Property, plant and equipment in the course of
be utilised. construction for production, supply or administrative
purposes are carried at cost, less any recognised
Such deferred tax assets and liabilities are not recognised
if the temporary difference arises from the initial impairment loss. Cost includes items directly attributable
recognition (other than in a business combination) of to the construction or acquisition of the item of property,
assets and liabilities in a transaction that affects neither plant and equipment, and, for qualifying assets,
the taxable profit nor the accounting profit. In case of a borrowing costs capitalised in accordance with the
history of recent losses, the group recognises a deferred Group's accounting policy. Such properties are classified
tax assets only to the extent that it has sufficient taxable to the appropriate categories of property, plant and
temporary differences or there is convincing other equipment when completed and ready for intended use.
evidence that sufficient taxable profit will be available Depreciation of these assets, on the same basis as-other
against which such deferred tax assets can be realised. property assets, commences when the assets are ready
for their intended use.
The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to the Subsequent costs are included in the assets carrying
extent that it is no longer probable that sufficient taxable amount or recognized as a separate asset, as appropriate
profits will be available to allow all or part of the asset to only if it is probable that the future economic benefits
be recovered. associated with the item will flow to the Group and that
the cost of the item can be reliably measured. The carrying
amount of any component accounted for as a separate
Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the asset is derecognized when replaced. All other repairs and
liability is settled or the asset realised, based on tax rates maintenance are charged to statement of profit and loss
(and tax laws) that have been enacted or substantively during the reporting period in which they are incurred.
enacted by the end of the reporting period.
Cost of acquisition is inclusive of freight, duties, taxes and
other incidental expenses.


Depreciation is recognised on the cost of assets (other

than freehold land and properties under construction) • the availability of adequate technical, financial and
less their residual values over their useful lives, using the other resources to complete the development and to
straight-line method. The estimated useful lives, residual use or sell the intangible asset; and
values and depreciation method are reviewed at the end • the ability to measure reliably the expenditure
of each reporting period, with the effect of any changes in attributable to the intangible asset during
estimate accounted for on a prospective basis. its development.
Depreciation is charged on a pro-rata basis at the straight The amount initially recognised for internally-generated
line method as per estimated economic useful lives intangible assets is the sum of the expenditure
prescribed in the Schedule II to the Act other than moulds incurred from the date when the intangible asset first
and dies which are depreciated over a period of 3-8 years meets the recognition criteria listed above. Where no
grouped under property, plant and equipment. internally-generated intangible asset can be recognised,
development expenditure is recognised in the statement
An item of property, plant and equipment is derecognised of profit and loss in the period in which it is incurred.
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Subsequent to initial recognition, internally-generated
Any gain or loss arising on the disposal or retirement of intangible assets are reported at cost less accumulated
an item of property, plant and equipment is determined amortisation and accumulated impairment losses,
as the difference between the sales proceeds and the on the same basis as intangible assets that are
carrying amount of the asset and is recognised in the acquired separately.
Statement of profit and loss.
An intangible asset is derecognised on disposal, or when
3.10 Intangible assets no future economic benefits are expected from use or
Intangible assets acquired separately disposal. Gains or losses arising from de-recognition of
Intangible assets with finite useful lives that are an intangible asset, measured as the difference between
acquired separately are carried at cost less accumulated the net disposal proceeds and the carrying amount of the
amortisation and accumulated impairment losses. asset, and are recognised in the statement of profit and
Amortisation is recognised on a straight-line basis over loss when the asset is derecognised.
their estimated useful lives. The estimated useful life
and amortisation method are reviewed at the end of Useful lives of intangible assets
each reporting period, with the effect of any changes Intangible assets, comprising of software, expenditure on
in estimate being accounted for on a prospective basis. model fee, etc. incurred are amortised on a straight line
Intangible assets with indefinite useful lives that are method over a period of its useful life.
acquired separately are carried at cost less accumulated
impairment losses. 3.11 Impairment of property, plant and equipment
and intangible assets
Internally-generated intangible assets - research and At the end of each reporting period, the Group reviews
development expenditure the carrying amounts of its tangible and intangible assets
Expenditure on research activities is recognised as an to determine whether there is any indication that those
expense in the period in which it is incurred. assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset
An internally-generated intangible asset arising from is estimated in order to determine the extent of the
development (or from the development phase of an impairment loss (if any). Recoverable amount is the higher
internal project) is recognised if, and only if, all of the of fair value less costs of disposal and value in use.
following have been demonstrated:
Intangible assets with indefinite useful lives and
• the technical feasibility of completing the intangible intangible assets not yet available for use are tested for
asset so that it will be available for use or sale; impairment at least annually, and whenever there is an
indication that the asset may be impaired. In assessing
• the intention to complete the intangible asset and use
or sell it; value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
• the ability to use or sell the intangible asset; rate that reflects current market assessments of the
time value of money and the risks specific to the asset
• how the intangible asset will generate probable future
economic benefits; for which the estimates of future cash flows have not
been adjusted.
25
For impairment testing, assets that don’t generate

independent cash flows are grouped together into period, taking into account the risks and uncertainties
cash generating units (CGU’s). Each CGU represents the surrounding the obligation. When a provision is measured
smallest group of assets that generate cash inflows using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of
that are largely independent of the cash inflows of other
assets or CGU’s. those cash flows (when the effect of the time value of
money is material).
When it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates the Warranties
recoverable amount of the cash- generating unit to which The estimated liability for product warranties is recorded
the asset belongs. When a reasonable and consistent when products are sold. These estimates are established
basis of allocation can be identified, corporate assets using historical information on the nature, frequency
are also allocated to individual cash-generating units, and average cost of warranty claims and management
or otherwise they are allocated to the smallest group estimates regarding possible future incidence based
of cash-generating units for which a reasonable and on corrective actions on product failures. The timing of
consistent allocation basis can be identified. outflows will vary as and when warranty claim will arise-
being typically two to five years.
If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the 3.14 Financial instruments
carrying amount of the asset (or cash-generating unit) is Financial assets and financial liabilities are recognised
reduced to its recoverable amount. An impairment loss when the Group becomes a party to the contractual
is recognised immediately in the statement of profit and provisions of the instruments.
loss. An impairment loss is reversed in the Statement
of Profit and Loss if there has been a change in the Financial assets and financial liabilities are initially
estimates used to determine the recoverable amount. measured at fair value. Transaction costs that are directly
The carrying amount of the asset is increased to its attributable to the acquisition or issue of financial assets
revised recoverable amount, provided that this amount and financial liabilities (other than financial assets and
does not exceed the carrying amount that would have financial liabilities at fair value through the statement
been determined (net of any accumulated depreciation) of profit and loss) are added to or deducted from the
had no impairment loss been recognized for the asset in fair value of the financial assets or financial liabilities,
prior years. as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets
3.12 Inventories or financial liabilities at fair value through the statement
of profit and loss are recognised immediately in the
Inventories are stated at the lower of cost and net
realisable value. Cost of inventories includes expenditure statement of profit and loss.
incurred in acquiring the inventories, production or
conversion cost and other costs incurred in bringing 3.15 Financial assets
them to their present location and condition. Costs All recognised financial assets are subsequently
of inventories are determined on a moving weighted measured in their entirety at either amortised cost
average. Finished goods and work-in-progress include or fair value, depending on the classification of the
appropriate proportion of overheads. Net realisable value financial assets.
represents the estimated selling price for inventories less
all estimated costs of completion and costs necessary to Classification of financial assets
make the sale. Debt instruments that meet the following conditions
are subsequently measured at amortised cost (except
3.13 Provisions for debt instruments that are designated as at fair
value through the statement of profit and loss on initial
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past recognition):
event, it is probable that the Group will be required to
settle the obligation, and a reliable estimate can be made • the asset is held within a business model whose
objective is to hold assets in order to collect
of the amount of the obligation.
contractual cash flows; and
The amount recognised as a provision is the best • the contractual terms of the instrument give rise
estimate of the consideration required to settle on specified dates to cash flows that are solely
the present obligation at the end of the reporting payments of principal and interest on the principal
amount outstanding.


Debt instruments that meet the following conditions

are subsequently measured at fair value through other arise from measuring assets or liabilities or recognising
comprehensive income (“FVTOCI”) (except for debt the gains and losses on them on different bases. The
instruments that are designated as at fair value through Group has not designated any debt instrument as
the statement of profit and loss on initial recognition): at FVTPL.
• the asset is held within a business model whose Financial assets at FVTPL are measured at fair value at
objective is achieved both by collecting contractual the end of each reporting period, with any gains or losses
cash flows and selling financial assets; and arising on re-measurement recognised in the statement
of profit and loss. The net gain or loss recognised in the
• the contractual terms of the instrument give rise statement of profit and loss incorporates any dividend
on specified dates to cash flows that are solely or interest earned on the financial asset and is included
payments of principal and interest on the principal in the 'Other income' line item. Dividend on financial
amount outstanding. assets at FVTPL is recognised when the Group's right to
receive the dividends is established, it is probable that the
Interest income is recognised in Statement of profit and economic benefits associated with the dividend will flow
loss for FVTOCI debt instruments. to the entity, the dividend does not represent a recovery
of part of cost of the investment and the amount of
All other financial assets are subsequently measured at dividend can be measured reliably.
fair value.
Impairment of financial assets
Effective interest method The Group applies the expected credit loss for recognising
The effective interest method is a method of calculating impairment loss on financial assets measured at
the amortised cost of a debt instrument and of allocating amortised cost, debt instruments at FVTOCI, trade
interest income over the relevant period. The effective receivables, other contractual rights to receive cash
interest rate is the rate that exactly discounts estimated or other financial asset, and financial guarantees not
future cash receipts (including all fees and points paid designated as at FVTPL.
or received that form an integral part of the effective
interest rate, transaction costs and other premiums The Group determines the allowance for credit losses
or discounts) through the expected life of the debt based on historical loss experience adjusted to reflect
instrument, or, where appropriate, a shorter period, to current and estimated future economic conditions.
the net carrying amount on initial recognition.
Offsetting
Income is recognised on an effective interest basis for Financial assets and financial liabilities are offset and the
debt instruments other than those financial assets net amount presented in the balance sheet when, and
classified as at FVTPL. Interest income is recognised in only when, the Group currently has a legally enforceable
the statement of profit and loss and is included in the right to set off the amounts and it intents either to settle
“Other income” line item. them on net basis or to realise the assets and settle the
liabilities simultaneously.
Financial assets at fair value through the statement of
profit and loss (FVTPL) Derecognition of financial assets
Investments in equity instruments are classified as at The Group derecognises a financial asset when the
FVTPL, unless the Group irrevocably elects on initial contractual rights to the cash flows from the asset
recognition to present subsequent changes in fair value expire, or when it transfers the financial asset and
in other comprehensive income for investments in equity substantially all the risks and rewards of ownership of the
instruments which are not held for trading. asset to another party.
Debt instruments that do not meet the amortised cost 3.16 Financial liabilities and equity instruments
criteria or FVTOCI criteria are measured at FVTPL. In Classification as debt or equity
addition, debt instruments that meet the amortised cost
Debt and equity instruments issued by Group are
criteria or the FVTOCI criteria but are designated as at classified as either financial liabilities or as equity in
FVTPL are measured at FVTPL. accordance with the substance of the contractual
arrangements and the definitions of a financial liability
A financial asset that meets the amortised cost criteria and an equity instrument.
or debt instruments that meet the FVTOCI criteria may
be designated as at FVTPL upon initial recognition if Equity instruments
such designation eliminates or significantly reduces a
An equity instrument is any contract that evidences a
measurement or recognition inconsistency that would residual interest in the assets of an entity after deducting
25
all of its liabilities.

Financial liabilities
Financial liabilities that are not held-for-trading and 3.19 Earnings per share
are not designated as at FVTPL are measured at Basic earnings per share is computed by dividing the
amortised cost at the end of subsequent accounting profit after tax by the weighted average number of equity
periods. The carrying amounts of financial liabilities shares outstanding during the year/period.
that are subsequently measured at amortised cost are
determined based on the effective interest method. Diluted earnings per share is computed by dividing the
Interest expense that is not capitalised as part of costs profit after tax as adjusted for dividend, interest and
of an asset is included under 'Finance costs' other charges to expense or income relating to the
dilutive potential equity shares, by the weighted average
The effective interest method is a method of calculating number of equity shares considered for deriving basic
the amortised cost of a financial liability and of earnings per share and the weighted average number
allocating interest expense over the relevant period. The of equity shares which could have been issued on the
effective interest rate is the rate that exactly discounts conversion of all dilutive potential equity shares.
estimated future cash payments (including all fees and
points paid or received that form an integral part of 3.20 Contingent liabilities and contingent assets
the effective interest rate, transaction costs and other A contingent liability exists when there is a possible but
premiums or discounts) through the expected life of the not probable obligation, or a present obligation that may,
financial liability. but probably will not, require an outflow of resources, or
a present obligation whose amount cannot be estimated
All financial liabilities are subsequently measured at reliably. Contingent liabilities do not warrant provisions,
amortised cost using the effective interest method or
but are disclosed unless the possibility of outflow of
at FVTPL.
resources is remote. Contingent assets are neither
recognised nor disclosed in the financial statements.
Derecognition of financial liabilities
However, contingent assets are assessed continually and
The Group derecognises financial liabilities when, and if it is virtually certain that an inflow of economic benefits
only when, the Group’s obligations are discharged,
will arise, the asset and related income are recognised in
cancelled or have expired.
the period in which the change occurs
3.17 Derivative financial instruments 3.21 Standards issued but not yet effective
The Group enters into a variety of derivative financial On March 23, 2022, the Ministry of Corporate Affairs
instruments to manage its exposure to foreign exchange (MCA) issued certain amendments and annual
rate risks, interest rate including foreign exchange improvements to Ind AS. These amendments are
forward contracts, option contracts, etc. applicable for accounting periods beginning on or after
April 1, 2022:
Foreign currency derivatives are initially recognised at
fair value at the date the derivative contracts are entered
– Ind AS 103 – Business Combinations – Reference
into and are subsequently re-measured to their fair to conceptual framework added
value at the end of each reporting period. The resulting
gain or loss is recognised in the statement of profit or
– Ind AS 16 – Property, Plant and Equipment
loss immediately unless the derivative is designated and
– Accounting for proceeds before an asset’s
effective as a hedging instrument, in which event the intended use
timing of the recognition in the statement of profit or loss
depends on the nature of the hedging relationship and the
– Ind AS 37 – Provisions, Contingent Liabilities and
nature of the hedged item. Contingent Assets – Assessing if the contract
is onerous
3.18 Cash flow statement
Cash flows are reported using the indirect method, – Annual improvements to Ind AS – Ind AS 109 (Financial
whereby profit / (loss) before extraordinary items and Instruments) and Ind AS 116 (Leases).
tax is adjusted for the effects of transactions of non-
cash nature and any deferrals or accruals of past or The Group will evaluate the impact of the above, where
future cash receipts or payments. The cash flows from applicable, on the financial statements and give impact of
operating, investing and financing activities of the Group the same in the relevant period.
are segregated based on the available information.


4. CRITICAL ACCOUNTING
(c) Provision and contingent liability
JUDGEMENTS AND KEY SOURCES OF
On an ongoing basis, Group reviews pending cases, claims
ESTIMATION UNCERTAINTY by third parties and other contingencies. For contingent
In the application of the Group accounting policies, losses that are considered probable, an estimated
which are described in note 3, the management of the loss is recorded as an accrual in financial statements.
Group are required to make judgements, estimates and Contingent loss that are considered possible are not
assumptions about the carrying amounts of assets provided for but disclosed as Contingent liabilities in
and liabilities that are not readily apparent from other the financial statements. Contingencies the likelihood
sources. The estimates and associated assumptions are of which is remote are not disclosed in the financial
based on historical experience and other factors that are statements. Contingent gain are not recognized until the
considered to be relevant. Actual results may differ from contingency has been resolved and amounts are received
these estimates. or receivable.
The estimates and underlying assumptions are reviewed (d) Useful lives of depreciable assets
on an ongoing basis. Revisions to accounting estimates Management reviews the useful lives of depreciable
are recognised prospectively. assets at each reporting date. As at March 31, 2022
management assessed that the useful lives represent the
The following are the areas of estimation uncertainty and expected utility of the assets to the Group. Further, there
critical judgements that the management has made in is no significant change in the useful lives as compared to
the process of applying the Group’s accounting policies previous year.
and that have the most significant effect on the amounts
recognised in the financial statements:- (e) Impairment of investment in associate
companies
(a) Recoverability of intangible asset During the year, the Group assessed the investment in
Capitalisation of cost in intangible assets under equity instrument of associate companies for impairment
development is based on management’s judgement that of testing. Some of these companies are start-ups or are
technological and economic feasibility is confirmed and at early stage of their operations and are expected to
asset under development will generate economic benefits generate positive cash flows in the future years. Detailed
in future. Based on evaluations carried out, the Group’s analysis has been carried out on the future projections
management has determined that there are no factors and the Group is confident that the investments do not
which indicates that these assets have suffered any require any impairment.
impairment loss.
(f) Government grant
(b) Defined benefit plans During the year, management has assessed the
The cost of the defined benefit plan and other post- conditions attached to grants which have been met and
employment benefits and the present value of such has assessed whether the grants will be received or
obligation are determined using actuarial valuations. An not. Basis assessment, the Group has recognised the
actuarial valuation involves making various assumptions government grants in the Statement of profit and loss.
that may differ from actual developments in the future.
These include the determination of the discount rate, (g) Investment in compulsory convertible
future salary increases, mortality rates and future debentures
pension increases. Due to the complexities involved in The classification of compulsory convertible debentures,
the valuation and its long-term nature, a defined benefit as equity or debt instrument, is based on management’s
obligation is sensitive to changes in these assumptions. judgement and evaluation of applicable criteria.
All assumptions are reviewed at each reporting date.
25

Furniture Data
Particulars Buildings and Vehicles Processing Total
Land equipment equipment
fixtures equipment
Cost
At April 1, 2020 186.47 2,908.61 6,234.93 57.36 64.68 82.48 237.07 9,771.60
Additions - 78.77 276.40 2.63 8.31 9.10 22.17 397.38
Disposals - 0.13 82.13 1.16 10.15 0.30 6.16 100.03
Foreign currency translation reserve - - (1.98) - - - - (1.98)
At March 31, 2021 186.47 2,987.25 6,427.22 58.83 62.84 91.28 253.08 10,066.97
Additions - 85.09 280.06 3.43 11.08 11.69 33.49 424.84
Disposals 11.32 - 101.57 0.25 13.38 0.62 21.31 148.45
- - 4.18 - - - - 4.18
Foreign currency translation reserve
At March 31, 2022 175.15 3,072.34 6,609.89 62.01 60.54 102.35 265.26 10,347.54
- 450.55 3,253.08 26.82 40.84 47.12 166.95 3,985.36
At April 1, 2020
- 91.26 480.07 4.95 5.21 12.91 25.88 620.28
Depreciation expenses
- 0.05 74.69 0.77 7.72 0.26 5.72 89.21
Disposals
- - (0.13) - - - - (0.13)
Foreign currency translation reserve
- 541.76 3,658.33 31.00 38.33 59.77 187.11 4,516.30
At March 31, 2021
- 92.38 464.66 4.66 5.97 11.40 24.78 603.85
Depreciation expenses - - 95.59 0.23 11.40 0.58 20.22 128.02
Disposals - - 1.07 - - - - 1.07
Foreign currency translation reserve - 634.14 4,028.47 35.43 32.90 70.59 191.67 4,993.20
At March 31, 2022
Net block 186.47 2,445.49 2,768.89 27.83 24.51 31.51 65.97 5,550.67
At March 31, 2021 175.15 2,438.20 2,581.42 26.58 27.64 31.76 73.59 5,354.34
At March 31, 2022
6. CAPITAL WORK-IN-PROGRESS*
As at As at
Particulars
March 31, 2022 March 31, 2021
Capital work-in-progress 149.13 236.40
149.13 236.40
Ageing of capital work in progress :

Amount in Capital work-in-progress for a period of
Particulars Total
Projects in progress as at March 31,2022 78.51 51.77 11.81 7.04 149.13
Projects in progress as at March 31,2021 105.77 51.40 79.09 0.14 236.40
*Project execution plans are modulated basis capacity requirement assessment on an annual basis and all the projects are executed as per rolling
annual plan.


7. RIGHT OF USE OF ASSETS

Leasehold land
Particulars Right of use assets Total
right
Cost
At April 1, 2020 277.25 293.38 570.63
Additions - 30.08 30.08
Foreign currency translation reserve - 8.39 8.39
At March 31, 2021 277.25 331.85 609.10
Additions - 40.28 40.28
At March 31, 2022 277.25 373.01 650.26
At April 1, 2020 3.44 48.40 51.84
At March 31, 2021 6.61 91.25 97.86
At March 31, 2022 9.78 122.58 132.36
Net block
At March 31, 2021 270.64 240.60 511.24
At March 31, 2022 267.47 250.43 517.90
The following is the break-up of current and non-current lease liabilities:-

As at As at
Particulars
March 31, 2022 March 31, 2021
Current lease liabilities 36.18 29.57
Non-current lease liabilities 215.51 212.42
Total 251.69 241.99
The following is the movement in lease liabilities :

Particulars Amount
At April 1, 2020 241.08
Additions 30.08
Finance cost accrued during the period 19.68
Payment of lease liabilities during the period (54.91)
Foreign Currency Translation Reserve 6.06
At March 31, 2021 241.99
Additions 40.28
Finance cost accrued during the period 19.22
Payment of lease liabilities during the period (49.31)
Foreign Currency Translation Reserve (0.49)
At March 31, 2022 251.69
The table below provides details regarding the contractual maturities of lease liabilities on an
undiscounted basis:
As at As at
Particulars
March 31, 2022 March 31, 2021
Less than one year 46.65 42.89
One to five years 183.13 164.37
More than five years 113.01 133.53
Total 342.79 340.79
26
7. RIGHT OF USE OF ASSETS (CONTD..)

The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet
the obligations related to lease liabilities as and when they fall due.
Rental expenses recorded for short-term leases is Rs. 38.22 crores during year ended March 31, 2022 (March 31, 2021 -
Rs. 35.37 crores).
7A. Other intangible assets

Model fee/brand
Technical know
license/Product Computer
Particulars how/Export Total
designs and Software
licenses
development
Cost
At April 1, 2020 864.15 169.73 2,912.50 3,946.38
Additions 169.37 30.97 - 200.34
Adjustments - 0.72 - 0.72
Foreign Currency Translation reserve - 0.50 - 0.50
At March 31, 2021 1,033.52 201.92 2,912.50 4,147.94
Additions 37.15 17.20 - 54.35
Foreign Currency Translation reserve - (0.13) - (0.13)
At March 31, 2022 1,070.67 218.99 2,912.50 4,202.16
At April 1,2020 762.39 113.63 2,902.46 3,778.48
Amortisation expenses 29.10 19.35 1.68 50.13
Less: Adjustments - 0.66 - 0.66
Foreign Currency Translation reserve - 0.19 - 0.19
At March 31, 2021 791.49 133.83 2,904.14 3,829.46
Amortisation expenses 28.58 21.17 1.68 51.43
Foreign Currency Translation reserve - (0.03) - (0.03)
At March 31, 2022 820.07 154.97 2,905.82 3,880.86
Net block
At March 31, 2021 242.03 68.09 8.36 318.48
At March 31, 2022 250.60 64.02 6.68 321.30
8. INTANGIBLE ASSETS UNDER DEVELOPMENT**

As at
As at
March 31, 2021
March 31, 2022
Intangible assets under development 258.73
368.09
Total 258.73
368.09
Ageing of intangible assets under development :
Amount in intangible assets under development for a period of

Intangible assets under development Total
**Project execution plans are modulated basis capacity requirement assessment on an annual basis and all the projects are executed as per rolling
annual plan.


9. INVESTMENTS
Current Current
9A. Equity accounted investment in Associates
Investment in equity instruments
Investment in Associates (carrying amount determined using
equity method of accounting)
- 0.20 - 0.20
Equity Shares of Face Value of Rs. 1 each 1,098 100
Preference shares of face value of Rs. 10 each 179,696 179,696 - 504.38 - 504.38
(Compulsorily Convertible into equity instruments)#
#
(including Goodwill on acquisition of interest Rs. 166.52 crores
(Previous Year Rs. 166.52 Crores)
Add: Group’s share of loss - (317.45) - (194.75)
- 187.13 - 309.83
Equity shares of Face Value of Rs. 10 each fully paid up## 52,431,893 52,431,893 - 1,469.04 - 1,469.04
##
(including Goodwill on acquisition of interest Rs. 51.64 crores
(Previous Year Rs. 51.64 Crores)
Add: Groups share of profit ( net off dividend received) - 546.34 - 628.82
- 2,015.38 - 2,097.86
9B. Investments
Category-wise investments
Investment in equity instruments 32.64 19.88 33.85 4.01
5,870.31 2,455.05 6,225.34 1,948.58
Quoted investments
Investment in equity instruments of Other Entities
Bombay Stock Exchange Limited
Face Value of Rs. 2 each - 19.88 - 4.01
210,600 70,200
Face value of Bangladesh Takas 10 each
Active Fine Chemicals Ltd. - - 2.00 -
- 1,500,000
Al-Arafah Islami Bank Ltd - - 0.28 -
- 150,000
Aman Feed Ltd. - - 0.45 -
- 179,189 - - 0.06 -
Apex Footwear Ltd. - 3,000 - - 0.45 -
Bangladesh Export Import Company Ltd. - 70,000 - - 0.06 -
Bangladesh general Insurance Company Ltd. - 20,000 0.40 - - -
Baraka Patenga Power Limited 140,000 - 0.25 - - -
Baraka Power Limited 115,000 - 0.42 - 0.21 -
BBS Cables Limited 83,297 45,100 0.00 - - -
BD Thai Food & Beverage 26 - - - 0.15 -
Berger Paints Bangladesh Ltd. - 1,000 - - 0.40 -
Beximo Pharmaceuticals Ltd. - 25,000 2.24 - - -
Beximo Green-Sukuk al Istisna's 289,085 - - - 0.23 -
British American Tobacco Bangladesh Company Ltd. - 5,000 - - 0.48 -
BSRM Steels Ltd. - 130,229 - - 0.03 -
Dhaka Bank Ltd. - 29,298 - - 0.07 -
Dhaka Insurance Ltd. - 20,000 0.25 - - -
Delta Brac Housing Finance Corp. 44,000 - - - 0.37 -
Dutch-Bangla Bank Ltd. - 75,557 0.83 - - -
DBH First Mutual Fund 1,260,695 -
26
Current Current
Eastern Bank Ltd. - 350,000 - - 1.10 -
Eastland Insurance Company Ltd. - 35,000 - - 0.08 -
Evince Textiles Ltd. - 52,500 - - 0.04 -
Export Import (Exim) Bank of Bangladesh Ltd. 1,864,261 1,500,000 2.05 - 1.46 -
Global Heavy Chemicals Ltd. - 28,200 - - 0.08 -
GPH Ispat Ltd. 129,000 - 0.62 - - -
Grameenphone Ltd. 107,336 23,000 3.11 - 0.65 -
Green Delta Mutual Fund 1,500,000 - 1.02 - - -
- - 0.52 -
Heidelberg Cement Bangladesh Ltd. - 35,500
1.23 - 0.98 -
IFAD Autos Limited 305,000 265,000
1.29 - - -
IFIC Bank Ltd. 1,070,000 -
0.67 - 2.57 -
Jamuna Bank Ltd. 333,518 1,599,338
0.00 - - -
JMI Hospital Requisite Manufacturing Ltd. 52 -
- - 0.12 -
Karnaphuli Insurance Company Ltd. - 50,000
- - 0.35 -
Khulna Power Company Ltd. - 89,755
- - - -
LafargeHolcim Bangladesh Ltd. - -
0.21 - 0.02 -
Lankabangla Finance Ltd. 75,000 10,000
0.52 - - -
LR Global Bangladesh Mutual Fund One 880,000 -
- - 0.20 -
Marico Bangladesh Ltd. - 1,092 - - 0.01 -
Meghna Petroleum Ltd. - 1,000 0.51 - 2.17 -
Mercantile Bank Limited 340,000 1,850,000 - - 0.06 -
Mercantile Insurance Company Limited - 20,000 - - 0.03 -
MJL Bangladesh Ltd. - 5,000 - - 1.01 -
Nahee Aluminium Composite Panel Ltd. - 247,424 3.57 - 5.21 -
National Credit and Commerce Bank Ltd. 2,630,000 4,500,000 0.80 - 1.02 -
National Tubes Ltd. 105,133 115,000 0.35 - 1.02 -
One Bank Limited 300,000 1,150,000 - - 0.31 -
Orion Infusion Ltd. - 50,025 - - 0.92 -
Orion Pharma Ltd. - 240,000 - - 0.00 -
Pacific Denims Ltd. - 3,000 - - 0.99 -
Premier Bank Ltd. - 850,000 - - 0.05 -
Renata Ltd. - 500 0.00 - 0.21 -
Ring Shine Textiles Ltd. 2,800 382,800 0.75 - - -
Robi Axiata Ltd. 255,000 - 1.52 - - -
Rupali Bank Ltd. 610,000 - 0.37 - - -
Runner Automobiles Ltd. 81,800 - - - 0.12 -
Sandhani Life Insurance Company Ltd. - 60,000 0.78 - - -
Singer Bangladesh Ltd 52,299 - - - 0.23 -
Shahjalal Islami Bank Ltd. - 120,000 - - 0.60 -
Shasha Denims Limited - 319,430 0.89 - 0.27 -
Southeast Bank Limited 710,000 252,500 1.93 - 0.03 -
Square Pharmaceuticals Ltd. 100,000 2,000 - - 0.02 -
Standard Insurance Ltd. - 5,000 - - 0.01 -
Style Craft Limited - 500 2.48 - - -
- - 0.05 -
The City Bank Limited 1,086,591 -
- - 0.02 -
Titan Gas Transmission & Dist. Company Ltd. - 20,000
- - 0.17 -
Unilever Consumer Care Ltd. - 100
2.88 - 3.39 -
United Insurance Ltd. - 50,000
- - 1.05 -
United Power Generation & Distribution Company Limited 128,964 147,617
- - 0.89 -
Uttara Bank Limited - 500,000
VFS Thread Dyeing Ltd. - 456,000


Current Current
Walton Hi-Tech Industries Ltd. 7,392 4,000 0.70 - 0.41 -
Western Marine Shipyard Limited - 166,405 - - 0.17 -
Compulsorily convertible debentures at the face value of 30,658 - - 150.00 - -
Rs. 100 each
Total - 150.00 - -
Quoted Investments
Investments carried at amortised cost
Face Value of Rs. 1,000 each
25.22 - - 25.22
7.34% HUDCO - Maturity - February 16, 2023 250,000 250,000
25.83 - - 25.83
7.18% IRFC - Maturity - February 19, 2023 250,000 250,000
- 17.42 - 17.42
8.18% NHPC Tax Free Bonds - Maturity - November 02, 2023 161,050 161,050 - 25.45 - 25.45
8.51% HUDCO Tax Free Bonds - Maturity - January 13, 2024 250,000 250,000 - 33.38 - 33.38
8.18% PFC Tax Free Bonds - Maturity - November 16, 2023 323,890 323,890
- - 25.77 -
9.10% Shriram Transport Finance Company Limited TR-I SR -III - 250,000
9.1 NCD - Maturity - July 12, 2021
Face Value of Rs. 10,00,000 each - - 28.78 -
8.1082% HDB Financial Services - Maturity - June 04, 2021 - 250
- 25.87 - 25.92
8.50% SBI Series II 8.50 BD Perpetual - Maturity - 250 250
November 22, 2024
Bank of Baroda Series XV 8.15 BD Perpetual - Maturity - 250 250 - 25.53 - 25.56
January 13, 2026
LIC Housing Finance Ltd. 386 7.99 NCD - Maturity - July 12, 500 500 - 54.69 - 54.88
2029 Housing Development Finance Corporation Ltd. Series Y-005 500 500 - 49.25 - 49.13
6.83 NCD - Maturity - January 08, 2031
Food Corporation of India Series IX 6.65 LOA - Maturity - 500 500 - 49.69 - 49.55
October 23, 2030
REC Limited Series 189 7.92 BD - Maturity - March 31, 2030 350 350 - 36.16 - 36.27
REC Limited Series 198B 7.79 BD - Maturity - May 21, 2030 150 150 - 16.45 - 16.49
National Bank of Agriculture and Rural Development Series 250 250 - 24.61 - 24.53
PMAY G PDI 6.39 LOA - Maturity - November 19, 2030
National Bank of Agriculture and Rural Development Series 200 200 - 19.71 - 19.65
PMAY G PD2 6.42 LOA- Maturity- November 25, 2030
Shriram Transport Finance company Limited Series PPMLY 02 250 250 - 27.20 - 25.19
BR BCD- Maturity- April 27, 2023
Housing Development Finance Corporation Limited Series X-006 500 500 - 52.87 - 52.88
7.25 NCD - Maturity - June 17, 2030
National Highways Authority of India Series VIII 7.54 BD - 500 500 - 51.82 - 51.93
Maturity - January 27, 2030
Muthoot Fincorp Limited Series VIII BR NCD - Maturity - 250 250 - 27.28 - 25.09
March 22, 2023
LIC Housing Finance Limited 7.05 LOA 21DC30 FVRS10LAC- 250 - - 25.45 - -
INE115A08369-250 - Maturity - December 21, 2030
LIC Housing Finance Limited SR 2 7.70 LOA 19MR31 250 - - 26.08 - -
FVRS10LAC-INE115A08377 - Maturity - March 19, 2031
Housing Development Finance Corporation Ltd SR AA 01 500 - - 51.13 - -
7.05 LOA 01DC31 FVRS10LAC-INE001A07TG4 - Maturity -
December 01, 2031
26
Current Current
Tata Capital Financial Services Limited SR H 7.10 NCD 29SP31 500 - - 51.43 - -
FVRS10LAC -INE306N07MN1 - Maturity - September 29, 2031
December 01, 2031
December 01, 2031
Power Finance Corporation Ltd. SR 197 7.41 BD 15MY30 150 - - 15.33 - -
FVRS10LAC-INE134E08KM0-150 - Maturity - May 15, 2030
Rec Limited Series 198B 7.79 BD 21MY30 FVRS10LAC 100 - - 11.06 - -
-INE020B08CW3-100 - Maturity - May 21, 2030
Rec Limited SR 203A 6.80 BD 20DC30 FVRS10LAC- 200 - - 19.92 - -
INE020B08DE9-200 - Maturity - December 20, 2030
FOOD CORPORATION OF INDIA SR X 7.09 BD 13AG31 250 - - 25.81 - -
FVRS10LAC-INE861G08084 - Maturity - August 13, 2031
51.05 1,119.49 54.55 610.49
Investment in debentures/bonds
{includes funds which are listed but not quoted}
Debt fund
ICICI Prudential Mutual Fund - - 88.48 -
FMP - Series 82 - 1199 Days Plan L Direct Plan Cumulative - 70,000,000 - - 62.67 -
FMP - Series 82 - 1135 Days Plan U Direct Plan Cumulative - 50,000,000 - - 62.94 -
FMP Series 83 - 1105 Days Plan F Direct Plan Cumulative - 50,000,000 87.75 - 83.50 -
Blended Plan B - Direct Plan- Growth Option (Merged with 32,595,446 32,595,446
Banking and PSU Debt Fund Direct Plan Growth) - - 219.11 -
Short Term Fund - Direct Plan - Growth Option - 45,067,080 38.86 - 144.03 -
Corporate Bond Fund - Direct Plan - Growth 15,805,811 61,271,259 105.63 - 50.32 -
Credit Risk Fund - Direct Plan Growth 38,904,433 19,905,885
Aditya Birla Sunlife Mutual Fund - - 113.64 -
Fixed Term Plan - Series PB (1190 days) - Direct Growth - 90,000,000 - - 43.65 -
Fixed Term Plan - Series PZ (1120 days) - Direct Growth - 35,000,000 - - 62.89 -
Fixed Term Plan - Series QB (1113 days) - Direct Growth - 50,000,000 65.31 - - 62.80
Fixed Term Plan - Series RC (1295 days) - Direct Growth 50,000,000 50,000,000 - - 75.70 -
Short Term Fund - Growth Direct Plan - 19,685,918
Nippon India Mutual Fund (Formerly Reliance Mutual Fund) - - 31.69 -
Short-term - Direct Growth Plan Growth Option - 36,347,075 178.20 - - -
Credit Risk Fund-Direct Growth Plan Growth Option 59,725,194 -
Invesco Mutual Fund (Formerly Religare Invesco Mutual Fund) 26.08 - - 24.99
FMP-Sr.33-Plan D (1273 Days) - Direct Sub Plan Growth 20,000,000 20,000,000


Current Current
SBI Mutual Fund
Savings Fund - Direct - Growth 70,345,757 43,898,670 250.16 - 150.12 -
Conservative Hybrid Fund Direct Plan Growth 4,382,290 - 25.06 - - -
IDFC Mutual Fund
- - 62.92 -
Fixed Term Plan Series 140 Direct Plan - Growth (1145 Days) - 50,000,000
- - 62.64 -
Fixed Term Plan Series 144 Direct Plan - Growth (1141Days) - 50,000,000
58.40 - 55.94 -
Banking & PSU Debt Fund - Direct Plan - Growth 28,629,997 28,629,997
- - 54.84 -
Credit Risk Fund- Direct Plan - Growth - 40,448,820
Kotak Mutual Fund
- - 94.30 -
- - 59.96 -
- - 63.28 -
156.70 - 27.28 -
Credit Risk Fund - Direct Plan - Growth 58,219,209 10,839,356
HDFC Mutual Fund
- - 94.21 -
- - 62.67 -
FMP 1147 D March 2018(1) - Direct - Growth - Series - 39 - 50,000,000 55.47 - 264.84 -
Low Duration Fund - Direct Plan - Growth Option 11,141,341 55,666,963 - - 53.18 -
Banking & PSU Debt Fund - Direct Growth Option - 29,139,567 207.54 - 74.35 -
Credit Risk Debt Fund - Direct - Growth 100,633,738 38,776,839
Axis Mutual Fund 54.31 - 103.75 -
Short Term - Direct Plan - Growth 20,355,074 40,842,187
ICICI Prudential Mutual Fund 225.66 - 320.94 -
Savings Fund - Direct Plan - Growth Option 5,155,314 7,647,092 150.08 - - -
Money Market Fund Direct Plan Growth 4,890,393 -
Aditya Birla Sunlife Mutual Fund 252.37 - 240.89 -
Low Duration Fund - Growth - Direct Plan 4,363,469 4,363,469 - - 50.14 -
Banking & PSU - Direct Plan - Growth - 1,730,722 170.91 - 117.79 -
Money Manager Fund - Growth - Direct Plan 5,717,703 4,101,753
Nippon India Mutual Fund (Formerly Reliance Mutual Fund) 54.55 - 155.97 -
Low Duration Fund - Direct Growth Plan Growth Option 172,138 516,415 250.14 - 150.04 -
Money Market Fund Direct Plan Growth 746,566 465,847
Invesco Mutual Fund (Formerly Religare Invesco Mutual Fund) 198.19 - 189.58 -
Short Term Fund - Direct Plan Growth 626,087 626,087 188.17 - 181.16 -
Ultra Short Term Fund - Direct Plan Growth 815,166 815,166
(Formerly Medium Term Bond Fund - Direct Plan Growth) 38.25 - 131.35 -
Corporate Bond Fund - Direct Plan Growth 139,843 502,311
Kotak Mutual Fund 46.45 - 44.25 -
Corporate Bond Fund Direct Growth 148,253 148,253 110.43 - 262.80 -
Low Duration Fund Direct Growth 380,566 947,500 280.07 - 218.51 -
Money Market Fund - Direct Plan - Growth 773,516 627,223
Axis Mutual Fund 98.24 - 94.23 -
Banking & PSU Debt Fund - Direct Growth 449,207 449,207
HDFC Mutual Fund - - 348.60 -
Money Market Fund - Direct Plan - Growth - 779,189
26
Current Current
DSP Mutual Fund
Low Duration Fund - Direct Plan - Growth 10,395,299 10,395,299 17.11 - 16.45 -
UTI Mutual Fund
Money Market Fund Direct Plan Growth 1,610,258 1,112,782 401.08 - 266.53 -
- 351.13 - 335.08
Edelweiss Mutual Bharat Bond ETF 3,000,000 3,000,000
- 964.55 - 911.21
Edelweiss Mutual Bharat Bond ETF 8,896,795 8,896,795
Equity fund
316.90 - 265.32 -
Arbitrage Fund - Direct Growth Plan Growth Option 138,819,753 121,555,798
257.89 - 100.35 -
Arbitrage Fund - Dividend - Direct Plan (Formerly Enhanced 113,338,345 46,073,214
Arbitrage Fund - Direct Plan - Dividend)
352.04 - 200.95 -
Arbitrage Fund - Direct Plan Growth 213,572,159 127,606,360
Kotak Mutual Fund
155.38 - 200.99 -
Equity Arbitrage Fund - Direct Plan - Growth 49,065,078 66,373,737
HDFC Mutual Fund
Arbitrage Fund - Direct Plan - Growth - 32,520,325 - - 50.18 -
UTI Mutual Fund
Arbitrage Fund Direct Growth Plan Growth 69,117,262 - 205.43 - - -
TATA MUTUAL FUND
Arbitrage Fund - Direct Plan - Growth 171,452,455 - 205.49 - - -
Axis Mutal Fund
152.25 - - -
Arbitrage Fund - Direct Grwoth 94,059,220 -
Liquid fund
ICICI Prudential Mutual Fund 100.01 - - -
Nippon India Mutual Fund 100.04 - - -
Aditya Birla Sunlife Mutual Fund 60.01 - - -
Overnight Fund Direct plan Growth 521,932 -
Kotak Mutual Fund 90.01 - - -
Overnight Fund - Direct Plan - Growth 793,871 - 5,786.62 1,315.68 6,136.94 1,334.09
Total Investments

Particulars
Aggregate book value of quoted investments 83.69 989.37 88.40 614.50
Aggregate market value of quoted investments 85.48 986.83 89.44 614.74
Aggregate carrying value of unquoted investments 5,786.62 3,668.19 6,136.94 3,741.77


Category-wise investment as per Ind AS 109 classification
Particulars
Financial assets carried at fair value through profit or loss (FVTPL)
Unquoted
Investment in Mutual Funds 5,786.62 1,315.68 6,136.94 1,334.09
- 150.00 - -
Quoted
Financial assets carried at amortised cost
Quoted
51.05 969.49 54.55 610.49
Investment in bonds
Information about the Group’s exposure to credit and market risk, and fair value measurement, is included in Note 42.
Investments in associates
Details of investments in associates (carrying amount determined using equity method of accounting)
Place of Proportion of ownership interest and

incorporation voting rights held by the Company
Name of associate Principal Activity
and principal
place of business As at As at
March 31, 2022 March 31, 2021
Hero FinCorp Limited Non-Banking Financial Company India
41.19% 41.19%
Ather Energy Private Limited Business of designing and manufacturing smart India
37.65% 38.08%
electric vehicles and associated charging infrastructure
Summarised financial information in respect of the Company's material associates is set out below. The summarised financial
information below represents amounts shown in the associate's financial statements prepared in accordance with Ind AS.
As at As at
March 31, 2022 March 31, 2021
Non-financial assets 731.89 540.01
Financial assets 33,667.16 29,456.02
Non-financial liabilities (113.41) (95.29)
Financial liabilities (29,515.66) (24,932.98)
Non-controlling interests (2.46) -
As at As at
March 31, 2022 March 31, 2021
Non-current assets* 17,414.71 14,965.63
Current assets* 16,984.34 15,030.40
Non-current liabilities* (15,598.90) (14,285.54)
Current liabilities* (14,030.17) (10,742.73)
Non-controlling interests (2.46) -
*Hero FinCorp Limited being Non-Banking Financial Company, does not bifurcate between current and non current assets or liabilities. Its financial
statements presents financial and non financial assets. Therefore, these figures are provided by Hero FinCorp Limited 's management.

March 31, 2022 March 31, 2021
Total revenue 4,738.66 4,278.08
Profit / (Loss) for the year (191.90) 51.63
Other comprehensive income for the year (1.69) (0.16)
Total Comprehensive income for the year (193.59) 51.47
Dividends received from the associate during the year 5.24 12.76
26
Reconciliation of the above summarised financial information to the carrying amount of the interest in the associate
recognised in the consolidated financial statements.
As at As at
March 31, 2022 March 31, 2021
Net assets of the associate 4,767.52 4,967.76
Proportion of the Group's ownership interest in the associate 41.19% 41.19%
Group's ownership interest in the associate 1,963.74 2,046.22
Add: Goodwill on acquisition 51.64 51.64
Carrying amount of the Group's interest in the associate 2,015.38 2,097.86
As at As at
March 31, 2022 March 31, 2021
Non-current assets 526.00 418.60
Current assets 292.60 318.70
Non-current liabilities (199.40) (160.70)
Current liabilities (394.30) (200.30)

March 31, 2022 March 31, 2021
Revenue 408.50 86.40
Loss for the year (344.10) (233.20)
Other comprehensive income for the year (0.50) 0.90
Total Comprehensive income for the year (344.60) (232.30)
Reconciliation of the above summarised financial information to the carrying amount of the interest in the associate
recognised in the consolidated financial statements.
As at As at
March 31, 2022 March 31, 2021
Net assets of the associate 224.90 376.30
Compulsorily convertible debentures investment by the Company accounted as per Ind AS 109 (150.00) -
(refer note 9B)
Total 74.90 376.30
Proportion of the Group's ownership interest in the associate 37.65% 38.08%
Group's ownership interest in the associate 28.20 143.31
Add: Goodwill on acquisition 166.52 166.52
Less:- Other adjustments (7.59) -
Carrying amount of the Group's interest in the associate 187.13 309.83
10. LOANS (FINANCIAL ASSETS)

As at As at
Particulars
March 31, 2022 March 31, 2021
NON - CURRENT
Total 17.43 16.73
CURRENT
Total 22.81 22.95
Note :- These financial assets are carried at amortised cost, unless otherwise stated.
Note :- The Group’s exposure to credit and currency risks, and impairment allowances related to Loans (Financial assets) is disclosed in Note 42.


11. OTHER FINANCIAL ASSETS

As at As at
Particulars
March 31, 2022 March 31, 2021
NON-CURRENT
Total 42.01 35.91
CURRENT
Derivatives instruments carried at fair value (forward contracts) - 0.65
Interest accrued on deposits and others 35.79 4.13
Accrual of incentives from State Government 395.12 344.45
Security Deposits 10.47 16.82
Other recoverables 33.62 16.50
Total 475.00 382.55
Note :- These financial assets are carried at amortised cost, unless otherwise stated.
Note :- The Group’s exposure to credit and currency risks, and impairment allowances related to Other financial assets is disclosed in Note 42.
12. INCOME TAX ASSETS (NET)

As at
As at
March 31, 2022
Advance income tax 1,302.80
1,194.67
Less : Provision for taxation 924.31
836.60
Total 378.49
358.07
13. OTHER ASSETS

As at As at
Particulars
March 31, 2022 March 31, 2021
NON-CURRENT
Capital advances 88.01 27.27
- Excise duty and others 13.16 12.48
- VAT/ sales tax 9.26 16.72
Total 120.34 62.68
CURRENT
Advance to suppliers 134.58 103.68
Less: Loss allowance (59.24) -
75.34 103.68
Other advances 3.88 1.22
- VAT/Sales tax and others 84.80 72.76
- Goods and service tax (GST) 1.20 36.74
- Export incentive receivable 37.19 17.32
Total 273.46 279.45
27
14. INVENTORIES
(lower of cost and net realisable value)
As at As at
Particulars
March 31, 2022 March 31, 2021
Raw materials and components 566.54 774.78
Goods in transit of raw materials and components 28.97 109.77
Work-in-progress (Two wheelers) 42.44 48.00
Finished goods
Stock in trade 11.84 23.82
Stores and spares 103.77 99.42
Loose tools 23.54 27.04
Total 1,472.41 1,789.27
The mode of valuation of inventories has been stated in note no. 3.12.
15. TRADE RECEIVABLES

As at As at
Particulars
March 31, 2022 March 31, 2021
Current
Trade Receivables considered good - (Secured) ** 37.50 54.81
Trade Receivables considered good - (Unsecured) ** 2,120.99 2,219.87
Trade Receivables credit impaired 116.90 117.64
2,275.39 2,392.32
Less: Allowance for expected credit loss 116.90 117.64
Total 2,158.49 2,274.68
The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.
The carrying amount of trade receivables approximates their fair value. The Group’s exposure to credit and currency risks, and
impairment allowances related to trade receivables is disclosed in Note 42.
**includes receivables from related parties (refer note 38).




16. CASH AND CASH EQUIVALENTS

As at As at
Particulars
March 31, 2022 March 31, 2021
Cash on hand 0.06 0.06
Balances with banks
In current accounts 179.52 273.18
In deposit accounts 1.44 1.38
Total 181.02 274.62
17. BANK
BALANCES OTHER THAN CASH AND CASH EQUIVALENTS ABOVE
As at As at
Particulars
March 31, 2022 March 31, 2021
Balances with banks
In dividend current accounts (earmarked accounts) 36.37 49.09
In deposit accounts* 82.35 72.53
Total 118.72 121.62
* Includes fixed deposits aggregating Rs. 25.00 crores with Dena Bank on February 18, 2014. Subsequent thereto, it was brought to the notice of the
Company that money had been fraudulently withdrawn by pledging fictitious copies of such fixed deposit receipts with concerned bank by some individuals.
The Company has filed a recovery suit which is pending in the honorable Delhi High Court against the bank. In the interim, the Bank has renewed the
deposits (along with interest earned thereon).
18. SHARE CAPITAL

(a) Equity Share capital
As at As at
Particulars
March 31, 2022 March 31, 2021
Authorised Equity shares capital
250,000,000 (as at March 31, 2021 - 250,000,000) Equity shares of Rs. 2 each 50.00 50.00
Total 50.00 50.00
Issued, subscribed and fully paid up
199,811,941 (as at March 31, 2021: 199,780,217) Equity shares of Rs. 2 each 39.96 39.96
Total 39.96 39.96
The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled
to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amount, in proportion to their shareholding.
(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of
the reporting year:
Particulars
Nos. ` in Crore Nos. ` in Crore
Opening Balance 199,780,217 39.96 199,739,368 39.95
Issued during the year Rs. # Current year Rs. 63,448* 31,724 # 40,849 0.01
(previous year Rs. 81,968*)- Employee Stock Option Plan
(refer note 41)
Closing Balance 199,811,941 39.96 199,780,217 39.96
* in absolute INR
27
18. SHARE CAPITAL (CONTD..)

(ii) Details of shareholders holding more than 5% equity shares in the Company:
Particulars % holding % holding
Nos. Nos.
in the class in the class
Ms Renu Munjal * 9,309,019 4.66% 9,309,019 4.66%
Mr Suman Kant Munjal * 9,309,019 4.66% 9,309,019 4.66%
Mr Pawan Munjal * 9,309,020 4.66% 9,309,020 4.66%
M/S Bahadur Chand Investments (P) Ltd 40,033,238 20.04% 40,033,238 20.04%
Life Insurance Corporation of India 22,037,338 11.03% 14,816,832 7.42%
* Hold shares on behalf of Brijmohan Lal Om Prakash (partnership firm)
On March 31, 2022, the promoters of the Company have acquired certain shares of the Company. However, same was not
reflecting in the relevant account of promoters as on March 31, 2022 and therefore not included in the shareholding pattern
mentioned above. Details of shares acquired are as follows:
– Pawan Munjal Family Trust, had purchased 43,100 equity shares increasing its total shareholding to 201,100 (0.10%)
– Mr. Vidur Munjal, Promoter Group, had purchased 1,000 equity shares (0.00%) on March 31, 2022.
– Mr. Akshay Munjal, Promoter Group, had purchased 1,000 equity shares (0.00%) on March 31, 2022.
– Mr. Ujjwal Munjal, Promoter Group, had purchased 1,000 equity shares (0.00%) on March 31, 2022.
Shares held by promoters at the end of the year March 31, 2022
% change during
Promoter name No. of shares % of total shares
the year
Pawan Munjal 43,364 0.02% 0.00%*
Pawan Munjal (As Karta of HUF) 32,500 0.02% 0.00%
Pawan Munjal,Renu Munjal and Suman Kant Munjal 27,927,058 13.98% 0.00%
Renu Munjal 111,482 0.06% 0.00%
Renuka Munjal 32,480 0.02% 0.00%
Suman Kant Munjal 91,250 0.05% 0.00%
Suman Kant Munjal (As Karta of HUF) 10,833 0.01% 0.00%
Bahadur Chand Investments Pvt Ltd 40,033,238 20.04% 0.00%
Hero Investcorp Private Limited 873,766 0.44% 0.00%
Pawan Munjal Family Trust (Pawan Munjal & Aniesha Munjal) 158,000 0.08% 0.00%
8,000 0.00% 0.00%
Santosh Munjal - 0.00% 0.00%
* Increase of 10 shares in absolute number.


18. SHARE CAPITAL (CONTD..)

Shares held by promoters at the end of the year March 31, 2021
% change during
Promoter name No. of shares % of total shares
the year
Pawan Munjal 43,354 0.02% 0.00%
Pawan Munjal (As Karta of HUF) 32,500 0.02% 0.00%
Pawan Munjal,Renu Munjal and Suman Kant Munjal 27,927,058 13.98% 0.00%
Renu Munjal 111,482 0.06% 0.00%
Renuka Munjal 32,480 0.02% 0.00%
Suman Kant Munjal 91,250 0.05% 0.01%
Suman Kant Munjal (As Karta of HUF) 10,833 0.01% 0.00%
Bahadur Chand Investments Pvt Ltd 40,033,238 20.04% 0.04%
873,766 0.44% 0.00%
Hero Investcorp Private Limited
158,000 0.08% 0.08%
Pawan Munjal Family Trust (Pawan Munjal & Aniesha Munjal)
8,000 0.00% 0.00%
10 0.00% 0.00%
Santosh Munjal
(iii) Shares options/ Restricted stock units/ Performance linked restricted stock units granted under
the Company's employee share option plan
Share Options Outstanding (In Nos.)
Option Series As at Expiry Date
As at
2022 11,349 August 21, 2023
ESOP 2016
14,910 October 31, 2024
ESOP 2017
2,128 October 31, 2024
RSU 2017
9,717 82,406 March 25, 2026
ESOP 2018
3,906 January 31, 2026
RSU 2018
64,480 October 22, 2026
ESOP 2019
12,687 3,647 October 22, 2026
RSU 2019
- 94,000 October 27, 2027
ESOP 2020
1,560 October 27, 2027
RSU 2020
- August 11, 2025
RSU 2021
61,780 - August 11, 2025
PRSU 2021
Also refer details of the employee stock option plan are provided in Note 41.
(b) Preference Share Capital

As at As at
Particulars
March 31, 2022 March 31, 2021
Authorised Preference shares capital
4,00,000 (as at March 31, 2021 - 4,00,000) Cumulative convertible preference shares of Rs. 100 each 4.00 4.00
4,00,000 (as at March 31, 2021 - 4,00,000) Cumulative redeemable preference shares of Rs. 100 each 4.00 4.00
Total 8.00 8.00
Note:- The Company has not issued preference share capital.
27
19. OTHER EQUITY

As at As at
Particulars
March 31, 2022 March 31, 2021
Capital reserves # #
Securities premium 41.12 31.49
General reserve 2,676.34 2,676.34
Share options outstanding account 24.45 19.04
Foreign currency translation reserve 4.73 0.89
Retained earnings 13,060.05 12,648.70
Total 15,806.69 15,376.46
Nature and Description

(i) Capital reserves:- The Group had transferred forfeited share application money to Capital reserve in accordance with
the provision of the Companies Act, 1956. The reserve will be utilised in accordance with the provisions of the Companies
Act, 2013.
(ii) Securities premium:- Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised
in accordance with the provisions of the Companies Act, 2013.
(iii) General reserve:- General Reserves are free reserves of the group which are kept aside out of Group’s profits to meet the
future requirements as and when they arise. The Group had transferred a portion of the profit after tax (PAT) to general
reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required
under the Companies Act, 2013.
(iv) Share options outstanding account:- Stock option outstanding account is used to record the impact of employee stock
option scheme. Refer note 41 for further detail of this plan.
(v) Foreign currency translation reserve:- Exchange differences arising on translation of the foreign operations.
(vi) Retained earnings:- Retained earnings are the accumulated profits earned by the Group and its associates till date, less
transfer to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.
As at As at
Particulars
March 31, 2022 March 31, 2021
A. Capital Reserves
On shares forfeited (#in absolute INR 4,250) # #
Securities premium account on forfeited shares reissued (## in absolute INR 25,500) ## ##
B. Securities premium
Premium on equity shares issued during the year @ 9.63 13.09
@
Addition in securities premium represents premium on equity shares under various schemes amounting to Rs. 5.04 crores (Previous year Rs. 7.83 crores)
and Rs. 4.59 crores (Previous year Rs. 5.26 crores) transferred from share option outstanding account on 31,724 equity shares (Previous year 40,849
equity shares) issued and allotted during the year under ESOP scheme. Also refer note 41.
As at As at
March 31, 2022 March 31, 2021
C. General Reserve
General reserve at the beginning and end of the year 2,676.34 2,676.34
D. Share options outstanding account *
Add: Net charge during the year 10.00 8.86
Less: Transferred to securities premium on issue of shares (4.59) (5.26)
* Also refer note 41.


19. OTHER EQUITY (CONTD..)

As at As at
Particulars
March 31, 2022 March 31, 2021
E. Foreign currency translation reserve
Exchange differences in translating the financial statements of foreign operations 5.12 (4.30)
Income tax effect (1.28) 1.10
F. Retained earnings
Opening balance 12,648.70 11,652.06
Profit for the year 2,316.88 2,917.75
Other Comprehensive income arising from remeasurement of defined benefit obligation net of (6.28) (20.81)
income tax
Less: Appropriations
Final dividend 699.26 499.35
Interim dividend 1,198.87 1,398.46
Corporate dividend tax 1.12 2.49
Closing Balance 13,060.05 12,648.70
In respect of the year ended March 31, 2022, the directors propose that a dividend of Rs. 35 per share (March 31, 2021 : Rs. 25
per share) and special dividend of Rs. nil per share (March 31, 2021: Rs. 10 per share) be paid on fully paid equity shares. This
equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as liability in
these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated
equity dividend to be paid is Rs. 699.34 crores (March 31, 2021 : Rs. 699.23 crores).
20. NON-CONTROLLING INTERESTS

For the year ended
For the year ended
March 31, 2022
Opening balance 140.60
143.19
Additions during the year 6.65
-
Dividend paid during the year (20.50)
(9.15)
Share of profit for the year 16.44
14.01
Closing non-controlling interest 143.19
148.05
21. BORROWINGS
As at As at
Particulars
March 31, 2022 March 31, 2021
Non-current
Unsecured - at amortised cost
Term loan from banks 36.17 45.06
Secured - at amortised cost
Term loan from banks - 0.12
36.17 45.18
Current
Unsecured - at amortised cost
Term loan from banks 20.66 11.69
Other loan from banks 296.53 285.16
Secured - at amortised cost
Term loan from banks 0.12 -
317.31 296.85
27
21. BORROWINGS (CONTD..)

As at As at
Lender Repayment Terms
March 31, 2022 March 31, 2021
Unsecured - Non current

36.17 42.44 14 equal quarterly instalments
Rupee Term Loans from HDFC Bank Rate of Interest range - beginning from September 26, 2021
I-MCLR one year + 05 basis points (Previous year: I-MCLR one
year + 05 basis points).
- 2.62 Maturity due from may, 2022
Term loan from Bancolombia, Colombia (Rate of interest DTF to September, 2022 in various
+ 5.40%) (Previous year- DTF + 5.40%)
instalments
Total 36.17 45.06
Secured - Non current
Loan from ICICI Bank (Secured by charge on vehicles) - 0.12 48 equal monthly instalments
beginning from April 01, 2019
Total - 0.12
Unsecured - current
Rate of Interest - range I-MCLR three month + 60 basis points 72.00 63.24 Repayable on demand
or MCLR three month + 45 basis points or 4% over one year
MCLR (Previous year: I-MCLR three month + 60 basis points or
MCLR
one year + 30 basis points). 37.78 10.35 Repayable within a period of 90 Days
Loan from Standard Chartered Bank
Rate of interest - LIBOR + 2.9% (Previous year - LIBOR + 2.9%) 32.08 37.06 Repayable within a period of 90 Days
Loan from Commercial Bank of Ceylon PLC
Rate of interest - LIBOR + 2.5% (Previous year - LIBOR + 2.5%) 27.42 42.85 Repayable within a period of 90 Days
Loan from Hongkong & Shanghai Banking Corporation
Rate of interest - LIBOR + 2.9% 26.43 - Repayable within a period of 90 Days
Short term Loan from Standard Chartered Bank
Rate of Interest - 6.5% (Previous year: Nil) - 34.57 Repayable within a period of 90 Days
Short term Loan from Hongkong & Shanghai Banking Corporation
Rate of Interest - NIL (Previous year - 6.5%) 98.14 88.99 Repayable within a period of 180
Loan from Bancolombia Days
Rate of Interest - LIBOR + 5.0% to 5.7%
(Previous year: LIBOR + 4.3%) 2.68 8.10 Repayable on demand
Loan from Bancolombia
Rate of Interest - DTF + 5.4% (Previous year: DTF + 5.4%) 20.66 11.69 14 equal quarterly instalments
Rupee Term Loans from HDFC Bank beginning from September 26, 2021
Rate of Interest range - I-MCLR one year + 05 basis points
(Previous year: I-MCLR one year + 05 basis points). 317.19 296.85
Total
Secured - current 0.12 - 48 equal monthly instalments
Loan from ICICI Bank (Secured by charge on vehicles) beginning from April 01, 2019
(Rate of interest - 8.90%) (Previous year - 8.90%) 0.12 -
Total
The Group has not defaulted in repayment of any loan and interest thereon.


22. PROVISIONS
As at As at
Particulars
March 31, 2022 March 31, 2021
Non-current
Gratuity 0.92 0.85
Sub-total (A) 44.83 36.51
Sub-total (B) 136.30 139.06
Total (A+B) 181.13 175.57
Current
Gratuity 0.52 0.46
Sub-total (A) 10.04 8.52
Sub-total (B) 169.11 167.30
Total (A+B) 179.15 175.82
(i) The provision for employee benefits includes compensated leaves, gratuity and vested long term service reward.
(ii) Movement in warranties provisions
Particulars
March 31, 2022 March 31, 2021
Additions during the year 111.50 227.15
Amount utilised during the year (106.94) (77.47)
Unwinding of discount and effect of changes in the discount rate (5.51) (4.69)
The provision for warranty claims represents the present value as best estimate of the future economic outflow that will be required under the
Group's obligations for warranties. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials,
altered manufacturing processes or other events affecting product quality. As at March 31, 2022 this particular provision had a carrying amount
of Rs. 305.41 crores (March 31, 2021 - Rs. 306.36 crores). In case the warranty claims differ by 10% from management’s estimates, the warranty
provisions would be an estimated Rs. 30.54 crores higher or lower ( March 31, 2021- Rs. 30.64 Crores higher or lower).
23. DEFERRED TAX (ASSETS)/ LIABILITIES (NET)

As at As at
Particulars
March 31, 2022 March 31, 2021
Property, plant and equipments and intangible assets 431.08 425.32
Financial assets carried at fair value through profit or loss 71.72 99.33
Investments in associate 111.97 130.68
Others 7.74 6.31
Sub-total (A) 622.51 661.64
Deferred tax assets
Accrued expenses deductible on payment 56.15 40.52
VRS expenses u/s 35DDA 6.06 9.08
Right of use assets and lease liabilities 5.53 3.88
Others 124.22 87.96
Sub-total (B) 244.30 208.90
Total (A-B) 378.21 452.74
27
23. DEFERRED TAX (ASSETS)/ LIABILITIES (NET) (CONTD..)

A. Movement of Deferred tax (assets)/ liabilities
Recognised in Other
Opening Recognised in
Particulars comprehensive Closing Balance
balance profit and Loss
income
Financial assets carried at fair value through profit or loss 99.33 (27.61) - 71.72
Investments in associate 130.68 (18.71) - 111.97
6.31 1.43 - 7.74
Others
661.64 (39.13) - 622.51
Deferred tax assets
Deferred revenue 67.46 (15.12) - 52.34
Others 87.96 38.11 (1.85) 124.22
208.90 37.25 (1.85) 244.30
Deferred tax liabilities (net) 452.74 (76.38) 1.85 378.21

Opening Recognised in Other
Particulars Recognised in
comprehensive Closing Balance
balance profit and Loss
income
Financial assets carried at fair value through profit or loss 73.98 25.35 - 99.33
Investments in associate 128.36 2.32 - 130.68
Others 14.29 (7.98) - 6.31
630.77 30.87 661.64
Deferred revenue 60.14 7.32 - 67.46
Others 56.43 29.80 1.73 87.96
158.19 48.98 1.73 208.90
Deferred tax liabilities (net) 472.58 (18.11) (1.73) 452.74
B. Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items, as it is not probable that the future taxable profit
will be available against which the respective subsidiaries in its jurisdiction can use the benefits therefrom:
Particulars Unrecognised Unrecognised
Gross amount Gross amount
tax effect tax effect
Tax losses from HMC MM Auto Limited (will expire from 39.15 10.18 36.08 9.38
March 31, 2023 to March 31, 2030) (previous year: Will expire
from
March 31, 2023 to March 31, 2029) 45.12 11.73 32.23 8.38
Unabsorbed depreciation losses from HMC MM Auto Limited
(can be carried forward for indefinite period) 213.39 70.42 214.13 70.66
Tax losses from HMCL Colombia SAS (tax losses amounting to
Rs. 78.89 crores will be carried forward indefinitely, tax
losses for Rs.134.50 crores will expire in the next 12 years)
(previous year : tax losses amounting to Rs. 72.66 crores will
be carried forward indefinitely, tax losses for Rs.141.47
crores will expire
in the next 12 years)


24. TRADE PAYABLES

As at As at
Particulars
March 31, 2022 March 31, 2021
Trade payables##
Total outstanding dues of micro and small enterprises 26.19 16.68
Total outstanding dues of creditors other than micro enterprises and small enterprises 4,316.90 5,247.50
Total 4,343.09 5,264.18
##
Include payables to related parties (refer note 38).
The Group’s exposure to currency and liquidity risk related to the above trade payables is disclosed in Note 42.

Outstanding for following periods from due date of payment
Particulars
Not due Less than 1 year 1-2 years 2-3 years More than 3 years Total
(1) MSME 23.42 2.77 - - - 26.19
(2) Others 2,930.68 319.38 3.80 2.30 2.55 3,258.71

Outstanding for following periods from due date of payment
Particulars
Not due Less than 1 year 1-2 years 2-3 years More than 3 years Total
(1) MSME 12.85 3.83 - - - 16.68
(2) Others 3,324.44 149.32 1.97 0.79 2.35 3,478.87
(3)Others - Accruals 1,768.63
Disclosure in respect of the amounts payable to Micro and Small enterprises, as defined under Micro, Small and Medium
Enterprises Development Act, 2006 has been made in the financial statements based on information received and available with
the Company.
As at As at
Particulars
March 31, 2022 March 31, 2021
The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each 26.19 16.68
accounting period;
The amount of interest paid by the buyer as per the Micro Small and Medium Enterprises Development Act, - -
2006 (MSMED Act, 2006)
The amounts of the payments made to micro and small suppliers beyond the appointed day during each - -
accounting year
The amount of interest due and payable for the period of delay in making payment (which have been paid but - -
beyond the appointed day during the year) but without adding the interest specified under MSMED Act, 2006
The amount of interest accrued for unpaid principal at the end of each accounting year - -
The amount of further interest remaining due and payable even in the succeeding years, until such date when - -
the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure under the MSMED Act, 2006
25. OTHER FINANCIAL LIABILITIES

As at As at
Particulars
March 31, 2022 March 31, 2021
Current
Capital creditors 41.09 54.10
Security deposits dealers and others 63.59 64.32
Unclaimed dividend * 36.39 49.10
Derivatives instruments carried at fair value (forward contracts) 4.51 -
Total 145.58 167.52
* Does not include any amounts outstanding as at March 31, 2022 which are required to be credited to Investor Education and Protection Fund.
The Group’s exposure to currency and liquidity risk related to the above financial liabilities is disclosed in Note 42.
28
26. OTHER LIABILITIES

As at As at
Particulars
March 31, 2022 March 31, 2021
Current
Statutory remittances (contributions to provident fund, employee state insurance, 170.37 234.06
withholding taxes, goods and service tax etc.)
Advance from customers 113.41 64.51
Others 4.56 3.99
Total 496.32 570.59
Contract balances
Contract liability is comprised of consideration received from customers against which services are yet to be provided reported
as advance from customers disclosed as under:
As at As at
Particulars
March 31, 2022 March 31, 2021
Advance from customers – current 113.41 64.51
Revenue recognised from amount included in contract liabilities (advance from customers and deferred revenue) at the
beginning of the year amounts to Rs. 64.51 crores and Rs. 249.26 crores respectively. (previous year Rs. 125.76 crores and
Rs. 213.20 crores respectively).
27. REVENUE FROM OPERATIONS

Particulars
March 31, 2022 March 31, 2021
(a) Sale of products
Two-wheelers 24,544.13 26,823.27
Spare parts 3,975.13 3,199.17
28,519.26 30,022.44
(b) Income from services
Dealers support services 86.92 43.18
Dealer program 50.52 37.37
Services - others 320.94 348.60
458.38 429.15
(c) Other operating revenue
Duty drawback and other incentives 43.70 22.72
Incentive from State Government 447.09 427.46
Miscellaneous income 82.85 57.42
573.64 507.60
Total 29,551.28 30,959.19

Particulars
March 31, 2022 March 31, 2021
Reconciliation of Revenue from sale of products with the contracted price
Contracted Price 29,049.12 30,507.24
Less: Trade discounts and volume rebates (529.86) (484.80)
Sale of products 28,519.26 30,022.44


28. OTHER INCOME

Particulars
March 31, 2022 March 31, 2021
(a) Interest income on financial assets carried at amortised cost
Tax free bonds, debentures and other instruments classified as debt 49.52 26.57
Deposit with bank and others 139.53 73.85
(b) Dividend income
Dividend received on investments carried at fair value through profit or loss 1.67 1.39
(c) Profit on sale of investments 109.11 169.07
(d) Gain on investments carried at fair value through profit or loss 223.82 285.77
(e) Other non-operating income
Exchange gain on foreign currency fluctuation 30.74 0.36
Total 555.01 557.90
29. COST OF RAW MATERIALS CONSUMED

For the year ended
For the year ended
Particulars
Raw materials and components consumed:
Opening stock 884.54 635.73
Add: Purchase of raw materials, components and packing materials 20,585.25 22,259.78
21,469.79 22,895.51
Less: closing stock 595.51 884.54
20,874.28 22,010.97
Less: Cash discount
28.54 42.93
Consumption of raw materials and components
20,845.74 21,968.04
30. CHANGES IN INVENTORY OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS

For the year ended
For the year ended
Particulars
(a) Opening stock (Refer note 14)
Stock in trade 23.82 -
Spare parts 63.23
Work-in-progress 45.41
48.00 51.55
778.26 522.69
(b) Closing stock (Refer note 14)
Two Wheelers
618.79
Stock in trade
Work-in-progress 76.52 23.82
42.44 63.23
Net (increase)/decrease in inventory 749.59 48.00
28.67 778.26
(255.57)

For the year ended
For the year ended
Particulars
Salaries and wages 1,715.27
1,743.99
Contribution to provident and other funds 123.65
131.75
Employee stock Compensation Cost (refer note no 41) 8.86
10.00
Staff welfare expenses 103.24
110.04
Total 1,951.02
1,995.78
28

Employee Benefit Plans
The details of various employee benefits provided to employees are as under:
A. Defined benefit, Contribution and other plans

Particulars
March 31, 2022 March 31, 2021
a) Employer's contribution to provident fund and labour welfare fund 89.05 80.66
b) Employer's contribution to superannuation fund 17.60 17.32
c) Employer's contribution to gratuity fund * 21.97 22.00
d) Employer's contribution to employee state insurance
3.13 3.67
131.75 123.65
* In addition to this contribution made amounting to Rs. 7.22 crores (previous year - Rs.28.16 crores) in other recognised as comprehensive expense.
B. Defined benefit plans:

In accordance with the Payment of Gratuity Act, 1972, the Group provides for gratuity, as defined benefit plan. The gratuity
plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested
year of employment. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year
based on which the Holding company contributes the ascertained liability to Life Insurance Corporation of India with whom
the plan assets are maintained and for certain group companies the liability of gratuity plan is provided based on actuarial
valuation as at the end of each financial year.
These plans typically expose the Company to actuarial risks such as: investment risk, inherent interest rate risk , longevity
risk and salary risk.
Investment Risk The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest Rate Risk The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined
benefit obligation will tend to increase.
Longevity Risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants
will
increase the plan's liability.
Salary Risk Higher than expected increases in salary will increase the defined benefit obligation.
The present value of the defined obligation, and the related current service cost, were measured using the projected unit
credit method.
The principal assumptions used for the purposes of the actuarial valuations were as follows :-
Funded
Principal assumptions: Gratuity Gratuity
As at As at
2022
6.70%
Discount rate 6.90%
Future salary increase 6.50% p.a. 6.50% p.a.
Retirement age 58 years 58 years
Withdrawal rate Upto 30 years: 3% Upto 30 years: 3%
from 31 to 44 years: 2% from 31 to 44 years: 2%
After 44 years: 1% After 44 years: 1%
In service mortality Indian Assured Lives Indian Assured Lives
Mortality Ult. (2006-08) Mortality Ult. (2006-08)



Un-Funded
Gratuity
Principal assumptions Gratuity
As at As at
March 31, 2022March 31, 2021
Discount rate 7.26%6.76%

Future salary increase Retirement age Withdrawal rate 5.50% p.a.5.50% p.a.
58 years58 years
Upto 30 years: 3%Upto 30 years: 3%
from 31 to 44 years: 2%from 31 to 44 years: 2%
In service mortalityIndian Assured Lives After 44 years: 1%After

Indian44 years: 1%
Assured Lives
Mortality Ult. (2012-14) Mortality Ult. (2012-14)
Amounts recognised in statement of profit and loss in respect of this defined benefit plan are as follows :-
Gratuity - funded Gratuity - unfunded
Particulars
For the year ended For the year ended For the year ended For the year ended
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Service cost: 22.67 21.13 0.19 0.29

Current service cost (0.97) 0.52 0.08 0.06
Net Interest expense/(income) 21.70 21.65 0.27 0.35
Components of defined benefit costs recognised
in profit or loss
Remeasurement on the net defined benefit liability: (0.37) 3.25 - -
Return on plan assets (excluding amounts included in net
interest expense) (5.87) (2.70) (0.05) -
Actuarial (gains)/losses arising from changes in financial
assumptions 13.51 27.59 (0.00) 0.02
Actuarial (gains)/losses arising from experience
adjustments 7.27 28.14 (0.05) 0.02
Components of defined benefit costs recognised in other
comprehensive income 28.97 49.79 0.22 0.37
Total
The amount included in the balance sheet arising from the entity's obligation in respect of its defined
benefit plans is as follows :
As at As at
Particulars
March 31, 2022 March 31, 2021
Present Value of funded defined benefit obligation 395.90 356.80
Fair value of plan assets 395.90 356.80
Net liability arising from defined benefit obligation - -
Present Value of unfunded defined benefit obligation 1.44 1.31
Fair value of plan assets
- -
Net liability arising from defined benefit obligation
1.44 1.31
Net liability disclosed as follows (under Provisions - Note 22)

:
Gratuity
Particulars As at March 31, 2022 As at March 31, 2021
Current Non current Current Non current
Other employee benefits 0.52 0.92 0.46 0.85
28

Movements in the present value of the defined benefit obligation are as follows :-
Gratuity - funded Gratuity - unfunded
Particulars For the year ended For the year ended For the year ended For the year ended
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Opening defined obligation 356.80 318.03 1.31 0.94
Current service cost 22.67 21.13 0.19 0.29
Interest cost 23.42 20.10 0.08 0.06
Remeasurement (gains)/losses:
Actuarial (gains)/losses arising from changes in (5.87) (2.70) (0.05) -
financial assumptions
Actuarial (gains)/losses arising from experience 13.51 27.59 (0.00) 0.02
adjustments
Benefits paid (14.63) (27.35) (0.10) -
Closing defined benefit obligation 395.90 356.80 1.44 1.31
Movements in the fair value of the plan assets are as

follows
Gratuity
March 31, 2022 March 31, 2021
Opening fair value of plan assets 356.80 252.35
Interest income 24.38 19.58
Remeasurement gain/(loss):
Return on plan assets (excluding amounts included in net interest expense) 0.37 (3.25)
Contribution 28.98 115.47
Benefit paid (14.63) (27.35)
Closing fair value of plan assets 395.90 356.80
The Holding Company makes annual contribution to Life Insurance Contribution (LIC). As LIC does not disclose the composition of
its portfolio investments, break-down of plan investments by investment type is not available to disclose.
Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase.
The sensitivity analysis below have been determined based on reasonable possible changes of the respective assumptions
occurring at the end of the year, while holding all other assumptions constant.
- If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by Rs. 14.03 crore
(increase by Rs. 15.04 crore) [as at March 31, 2021: decrease by Rs. 13.07 crores (increase by Rs. 14.00 crores)].
- If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligation would increase by Rs. 15.02
crores (decrease by Rs. 14.15 crores) [as at March 31, 2021: increase by Rs. 13.97 crores (decrease by Rs. 13.16 crores)].
Sensitivities due to change in mortality rate and change in withdrawal rate are not material and hence impact of such change is
not calculated.
Sensitivity Analysis
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated
using the projected unit credit method at the end of reporting year, which is same as that applied in calculating the defined
benefit obligation liability recognised in the balance sheet.



Other disclosures
Maturity profile of defined benefit obligation
As at As at
Particulars
March 31, 2022 March 31, 2021
Weighted Average duration of the defined benefit obligation (in years) 9.0 years 9.0 years
The Group expects to make a contribution of Rs. 24.74 crore (as at March 31, 2021: Rs. 22.67 crore) to the defined benefit plans
during the next financial year.
The Expected maturity analysis of undiscounted defined benefit liability is as follows:

Between Between Over
Particulars Less than a year Total
1-2 2-5 5 years
years years
As at March 31, 2022 67.77 27.81 98.07 199.34 392.99
As at March 31, 2021 56.82 23.76 94.12 166.86 341.56
32. FINANCE COSTS

Particulars
March 31, 2022 March 31, 2021
Interest cost on financial liability at amortised cost
- on dealers security deposits 2.70 2.50
- on borrowings 25.05 22.63
- on others 1.67 2.16
Unwinding of discount on provisions and lease liabilities 23.68 19.12
Total 53.10 46.41
33. OTHER EXPENSES

Particulars
March 31, 2022 March 31, 2021
Stores and tools consumed 80.09 82.65
Packing, forwarding and freight etc 948.29 960.60
Power and fuel 109.72 113.89
Rent (Refer note 7A) 38.22 35.37
Repairs and maintenance
- Buildings 22.30 18.08
- Plant and machinery 114.60 107.39
- Others 10.09 9.52
Insurance charges 74.28 68.93
Rates and taxes 17.65 16.43
Royalty 3.50 9.51
Advertisement and publicity 750.45 606.00
Donations 0.26 0.25
Expenditure on corporate social responsibility (Refer below) 87.85 68.35
Payment to auditors (Refer below) 3.07 2.76
Exchange fluctuation 12.60 -
Loss on sale of property, plant and equipment 10.23 4.67
Miscellaneous expenses 906.43 1,014.33
Total 3,190.37 3,165.05
28
33. OTHER EXPENSES (CONTD..)

Payment to auditors
Particulars
March 31, 2022 March 31, 2021
a) As Statutory Audit
- Audit fee (including audit fees for the auditors of other entities of Group) * 1.93 1.79
- Limited Review of unaudited financial results 0.81 0.66
- Other certifications 0.09 0.09
b) Tax audit fees 0.10 0.10
c) Out of pocket expenses 0.14 0.12
3.07 2.76
* Paid to other auditors Rs. 0.89 crores (Previous year - Rs. 0.85 crores).
Expenditure on Corporate Social Responsibility (CSR)

For the year ended
For the year ended
March 31, 2022
Amount required to be spent by the Group during the year 97.06
87.22
Amount of expenditure incurred 68.35
87.85
Total of previous years shortfall * 31.38
-
Shortfall at the end of the year - -
Nature of CSR activities Promoting education; promoting gender equality and
empowering women; disaster management including
relief, rehabilitation and reconstruction activities;
ensuring environmental sustainability and
ecological balance; rural development projects;
eradicating
hunger, poverty and malnutrition
For Related party transactions (Refer Note 38) 23.84 12.10
* The Group had contributed Rs. 31.38 Crores in year ended March 31, 2020 towards PM Cares fund which was carried forward for set-off in the financial
year ended March 31, 2021 , based on communication released by Ministry of Corporate affairs.

(a) Income tax expense recognised in the Statement of profit and loss
Particulars
March 31, 2022 March 31, 2021
Current tax:
In respect of the current year 805.44 931.38
Deferred tax charge
In respect of the current year (76.38) (18.11)
Total income tax expense recognised in the Statement of profit and loss 729.06 913.27
(b)Income tax on other comprehensive income

Particulars
March 31, 2022 March 31, 2021
Arising on income and expenses recognised in other comprehensive income:
Re-measurement of defined benefit obligations 1.83 7.08
Others (1.85) 1.73
Total income tax benefit recognised in other comprehensive income (0.02) 8.81



(CONTD..)
(c) The income tax expense for the year can be reconciled to the accounting profit as follows:
Particulars
March 31, 2022 March 31, 2021
Income tax expense calculated at 25.168% 769.67 968.80
Effect of income exempt/ taxed on lower/ higher rate (61.77) (52.12)
Effect of unused tax losses of subsidiaries not recognised as deferred tax assets 3.30 11.19
Others
17.86 (14.60)
Income tax expense recognised in the Statement of profit and loss
729.06 913.27
Income Tax recognised in the Statement of profit and loss
729.06 913.27
35. EARNINGS PER SHARE

Particulars
March 31, 2022 March 31, 2021
Basic earnings per share (in Rs.) 115.96 146.07
Diluted earnings per share (in Rs.) 115.93 146.04
The earnings and weighted average number of equity shares used in the calculation of basic earnings per
share are as follows.
Profit for the year attributable to owners of the Company (Rs. in crores) 2,316.88 2,917.75
Opening Balance 199,780,217 199,739,368
Effect of share options exercised 16,722 16,417
Weighted average number of equity shares for the purposes of basic earnings per share 199,796,939 199,755,785
Effect of share options 61,672 30,379
Weighted average number of equity shares for the purposes of diluted earnings per share 199,858,611 199,786,164
36. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
As at As at
Particulars
March 31, 2022 March 31, 2021
a) Contingent liabilities
In respect of excise and other matters# 123.65 87.75
# including proportionate share of contingent liability from associate companies.
The various matter are subject to legal proceedings in the ordinary course of business. The legal proceeding when ultimately
concluded will not, in the opinion of management, have a material effect on the result of operations or the financial position of
the Group.
Additionally, the Group is involved in other disputes, lawsuits, claims, inquiries, investigations and proceedings, including
commercial matters that arise from time to time in the ordinary course of business. The Group believes that none of these
matters, either individually or in aggregate, are expected to have any material adverse effect on its financial statements.
As at As at
Particulars
March 31, 2022 March 31, 2021
b) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for 535.72 400.86
[Net of advances paid amounting to Rs. 88.01 crores (March 31, 2021: Rs. 30.97 crores)]
c) The Income Tax Department (“the Department”) conducted a Search activity (“the Search”) under Section 132 of the Income Tax Act on the
Company in March 2022. Subsequently, the Company has provided all support and cooperation and the necessary documents and data to
the Department, as requested by the Department.
The Company is examining and reviewing the details of the matter and will take appropriate actions, including addressing regulatory actions,
if and when they occur.
While the uncertainity exists regarding the outcome of the proceedings by the department, the Company after considering all available
28
information and facts as of date, has not identified the need for any adjustments to the current or prior period financial statements.

37. SEGMENT REPORTING

The Group primarily operates in the automotive segment. The automotive segment includes all activities related to
development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories. The
board of directors of the Holding Company, which has been identified as being the chief operating decision maker (CODM),
evaluates the Group's performance, allocate resources based on the analysis of the various performance indicator of the
Group as a single unit.
Therefore, based on the guiding principles given in Ind AS 108 on ‘Operating Segments’, the Group’s business activity fall
within a single operating segment, namely automotive segment . Accordingly, the disclosure requirements of Ind AS 108 are
not applicable.
Entity wide disclosure details as per Ind AS 108 on Operating segments are given below:
Revenue from operations Domestic Overseas Total
2021-22 27,617.36 1,933.92 29,551.28
2020-21 29,783.88 1,175.31 30,959.19
Disclosure as per the requirement of Ind AS 115, Revenue :

For the year ended March 31, 2022 :
Particulars India Outside India Total
Sale of products 26,601.00 1,918.26 28,519.26
Income from services 458.38 - 458.38
Other operating revenue 557.98 15.66 573.64
Total 27,617.36 1,933.92 29,551.28
For the year ended March 31, 2021 :

Particulars India Outside India Total
Sale of products 28,857.51 1,164.93 30,022.44
Income from services 429.15 - 429.15
Other operating revenue 497.22 10.38 507.60
Total 29,783.88 1,175.31 30,959.19
Non current segment assets India Outside India Total

As at March 31, 2022 6,520.18 310.92 6,831.10
As at March 31, 2021 6,612.92 325.28 6,938.20
a) Domestic segment includes sales and services to customers domiciled in India.
b) Overseas segment includes sales and services rendered to customers domiciled outside India.
c) Non-current segment assets includes property, plant and equipment, capital work in progress, right of use of assets,
intangible assets, intangible assets under development and non-current other assets.
d) There is no major individual customers whose revenue exceeds more than 10% of the Group's revenue.



A. Parties in respect of which the Holding Company is an associate
Brijmohan Lal Om Prakash (Partnership firm)
Bahadur Chand Investments Private Limited - Core Investment Company
B. Parties in respect of which the other Group Companies are associates

Marelli Europe S.p.A.
Marelli UM Electronics Systems Pvt. Ltd (Formerly known as Magnetti Marelli UM Electronics Systems Pvt. Ltd.)
Marelli Powertrain India Private Limited
Marelli (India) Pvt. Ltd.
Marelli (China) Co. Ltd.
Marelli Sistemas Automotivos Industria E Comercio Brasil Ltda
Niloy Motors Limited; Bangladesh
Nitol Motors Limited; Bangladesh
Nitol Electronics Ltd.; Bangladesh
Nitol Machineries Ltd; Bangladesh
Nitol Insurance Company Ltd; Bangladesh
Woven Holdings LLC
C. Associates of the Group

D. For subsidiaries of the Holding Company - Refer Note 2.4
E. Key management personnel and their relatives of Holding company

Dr. Pawan Munjal - Chairman and Chief executive officer
Mr. Suman Kant Munjal - Director
Mr. Vikram Sitaram Kasbekar - Whole Time Director
Mr. Niranjan Kumar Gupta - Chief Financial Officer
Ms. Neerja Sharma (till January 31, 2022) - Company Secretary
Mr. Dhiraj Kapoor (w.e.f February 01, 2022) - Company Secretary
Non Executive and Independent Directors of Holding Company

Mr. Pradeep Dinodia
Mr. M. Damodaran
Mr. Paul B. Edgerley (till May 04, 2021)
Dr. Jagmohan Singh Raju
Ms. Tina Trikha
Mr. B.S. Dhanoa (appointed w.e.f. October 01, 2020)
Ms. Camille Tang (w.e.f November 19, 2021)
Mr. Rajnish Kumar (w.e.f November 25, 2021)
Ms. Vasudha Dinodia (w.e.f November 25, 2021)
29

(CONTD..)
F. Enterprises over which key management personnel and their relatives are able to control
A.G. Industries Private Limited, A.G Industries (Bawal) Pvt Limited, Rockman Industries Limited, Cosmic Kitchen Private
Limited, Hero InvestCorp Private Limited, Hero Solar Energy Private Limited, BML Munjal University, Raman Kant Munjal
Foundation, Excellence Enablers Private Limited and Raman Munjal Vidya Mandir.
Transactions with the above related parties:

Particulars
March 31, 2022 March 31, 2021
A) PARTIES IN RESPECT OF WHICH THE GROUP IS AN ASSOCIATE
Dividend paid
Brijmohan Lal Om Prakash (Partnership firm) 265.31 265.31
Hero InvestCorp Private Limited 8.30 8.30
Bahadur Chand Investments Private Limited 380.32 380.32
Marelli Europe S.p.A.
Purchase of goods 0.82 2.54
Payment of development fee 3.32 1.30
Royalty 4.26 9.25
Expenses reimbursed 1.63 1.35
Marelli UM Electronics Systems Pvt. Ltd
(Formerly known as Magnetti Marelli UM Electronics Systems Pvt. Ltd.)
Purchase of goods - 8.24
Marelli (China) Co. Ltd.
Warranty Recovery - 0.56
Marelli Sistemas Automotivos Industria E Comercio Brasil Ltda
Development Fee - 0.34
Warranty Recovery 0.03 0.25
Marelli Powertrain India Private Limited
Development Fee 0.11 -
Warranty Recovery 0.01 0.44
Sale of goods
Niloy Motors Limited* 750.51 644.19
Purchase of goods/services
Nitol Machineries Ltd 0.88 1.35
Nitol Insurance Company Ltd 0.49 0.37
Nitol Motors Ltd. 0.35 -
Nitol Electronics Limited 0.84 -
Others
Nitol Motors Limited 0.43 0.35
Niloy Motors Limited 35.06 25.72
Woven Holdings LLC
Investment in equity instruments - 6.65
* Including taxes and duties



As at As at
Particulars
March 31, 2022 March 31, 2021
- Trade Payable
Marelli Europe S.p.A. 5.74 7.26
Marelli Sistemas Automotivos Industria E Comercio Brasil Ltda 1.07 10.05
Marelli Powertrain India Private Limited 8.06 18.62
Niloy Motors Limited - 2.53
Nitol Motors Ltd. 0.03 0.03
- Trade Receivable
Marelli (China) Co. Ltd. 0.28 -
Niloy Motors Limited 32.62 -
Nitol Machineries Ltd 1.45 1.26
B) ASSOCIATES OF THE HOLDING COMPANY

For the year ended
For the year ended
March 31, 2022
Lease rental expenses 2.67 7.83
Dividend received 5.24 12.77
Dividend paid 0.01
Investment in equity instruments 0.01
- 194.38
Miscellaneous Expenses
12.19 13.23
Investment
150.00
174.00

As at As at
Particulars
March 31, 2022 March 31, 2021
- Trade Payable
Hero FinCorp Limited - 0.04
C) KEY MANAGEMENT PERSONNEL AND THEIR RELATIVE

For the year ended
For the year ended
Particulars
Managerial Remuneration/Sitting fees
Mr. Pawan Munjal 84.35 86.93
Mr. Vikram Sitaram Kasbekar 8.08 6.54
Mr. Suman Kant Munjal 0.36
Mr. Niranjan Kumar Gupta 0.23
6.71 4.97
Ms. Neerja Sharma (till January 31, 2022)
5.10 5.31
Mr. Dhiraj Kapoor (w.e.f February 01, 2022)
0.15 -
Dividend paid
2.93
2.93
29

(CONTD..)
Commission/Sitting fees/expenses reimbursement to Non Executive and Independent Directors
For the year ended
For the year ended
Particulars
Mr. Pradeep Dinodia 1.09
1.43
Mr. M. Damodaran 1.01
1.28
Mr. Paul B. Edgerley (Till May 04, 2021) 0.68
0.05
Dr. Jagmohan Singh Raju 0.66
0.93
Mr. B. S. Dhanoa 0.24
0.87
Ms. Tina Trikha 0.56
0.95
Ms. Camille Tang (w.e.f November 19, 2021) -
0.25
Mr. Rajnish Kumar (w.e.f November 25, 2021) -
0.18
Ms. Vasudha Dinodia (w.e.f November 25, 2021) -
0.18

As at
As at
Particulars
-Payables (including commission) 30.49 41.35
Category-wise break up of compensation to key management personnel during the year is as follows:
For the year ended
For the year ended
Particulars
Managerial remuneration*
Short-term benefits 97.82 98.94
Post-employment benefits 4.55 3.92
Share-based payments 2.02
0.89
* Does not include provisions for incremental gratuity and compensated absences liabilities, since the provisions are based on actuarial
valuations for the Group as a whole.
D) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND THEIR RELATIVES ARE ABLE TO EXERCISE CONTROL
For the year ended
For the year ended
Particulars
Purchase of raw materials and components etc. 2,610.84
2,959.95
Purchase of property, plant and equipments 18.79
26.81
Payment towards services etc. 3.55
6.35
Expenditure towards Corporate Social Responsibility (CSR) 23.84 12.10



Balance outstanding as at the year end
As at As at
Particulars
March 31, 2022 March 31, 2021
- Payables 449.69 400.03
- Receivables - 0.19
Significant related party transactions included in the above are as under :-

Particulars
March 31, 2022 March 31, 2021
Purchase of raw materials and components etc.
Rockman Industries Limited 2,022.02 1,669.14
Purchase of Assets
Hero Solar Energy Private Limited 2.16 -
Payment for service etc.
Hero Solar Energy Private Limited 1.96 0.20
A. G. Industries Private Limited - 0.85
Cosmic Kitchen Pvt Limited 2.74 -
Excellence Enablers Private Limited - 0.09
Raman Munjal Vidya Mandir - 0.08
CSR
Raman Kant Munjal Foundation 3.84 2.10
Significant closing balances of related parties are as under :-

As at As at
Particulars
March 31, 2022 March 31, 2021
Trade Payables
G. Terms and Conditions

All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions and
within the ordinary course of business. Outstanding balances at the year end are unsecured and settlement occurs in cash.
39. RESEARCH AND DEVELOPMENT EXPENSES:

Expenses charged to revenue account
Particulars
March 31, 2022 March 31, 2021
Raw material consumption 22.09 12.23
Consumables 5.78 2.48
Employee Benefits 227.68 216.09
Depreciation and amortisation 102.14 96.97
Others* 78.58 74.87
Total 436.27 402.64
* Includes intangible asset under development amounting to Rs. Nil (previous year Rs. 0.23 crores) expensed off during the year.
29
39. RESEARCH AND DEVELOPMENT EXPENSES (CONTD..)

Capital expenditure
For the year ended
Particulars For the year ended
March 31, 2021
March 31,
Building 2022 0.06
Equipments 10.25
Furniture and fixtures 1.52
Software 0.20 9.62
Vehicles 2.31
Data processing equipments 1.64
Intangible assets 8.66 18.52
43.92
Capital work in progress and intangible assets under development 102.56
Total 0.57 146.48
40. COVID-19
The situation of Covid-19 pandemic is continuously evolving. The impact assessed may be different from the estimates made as
at the date of approval of these financial statements and management will continue to monitor any material changes arising due
to the impact of this pandemic on financial and operational performance of the Group and take necessary measures to address
the situation.
41. SHARE-BASED PAYMENTS

Employee Stock Option Plan
The Employee Stock Options Scheme titled “Employee Incentive Scheme 2014 - Options and Restricted Stock Unit” hereafter
referred to as “Employee Incentive Scheme 2014” or “the Scheme” was approved by the shareholders of the Holding Company
through postal ballot on September 22, 2014. The Scheme covered 49,90,000 options/ restricted units for 49,90,000 equity
shares. The Scheme allows the issue of options/restricted stock units (RSU)/ performance linked restricted stock units (PRSU)
to employees of the Company which are convertible to one equity share of the Company. As per the Scheme, the Nomination
and Remuneration Committee grants the options/RSU/PRSU to the employees deemed eligible. The options and RSU / PRSU
granted vest over a period of 4 and 3 years respectively from the date of the grant in proportions specified in the respective
ESOP Plans. Options/RSU/PRSU may be exercised by the employees after vesting period upto 7 years from the date of grant.
The fair value as on the date of the grant of the options/RSU/PRSU, representing Stock compensation charge, is expensed over
the vesting period.
Details of the Stock Option/ RSU/PRSU issued under the Scheme

Weighted Average
Number of Options/ Exercise Price Fair value of the
Plan RSU/PRSU Grant date Expiry date
Rs. Options at grant date
Rs.
ESOP 2016 41,290 August 22, 2016 August 21, 2023 2,469 1,324
15,769 October 31, 2017 October 31, 2024 2 3,663
RSU 2017
125,000 March 25, 2019 March 25, 2026 2,033 1,138
ESOP 2018
17,760 January 31, 2019 January 31, 2026 2 2,672
RSU 2018
98,750 October 22, 2019 October 22, 2026 1,745 1,067
ESOP 2019
5,210 October 22, 2019 October 22, 2026 2 2,308
RSU 2019 101,375 October 27, 2020 October 27, 2027 2,085 1,200
ESOP 2020 1,560 October 27, 2020 October 27, 2027 2 2,686
PRSU 2021



Fair value of share options/ RSU granted during the year
The fair value of options/RSU granted is estimated using the Black Scholes Option Pricing Model after applying the key
assumption which are tabulated below. The expected volatility has been calculated using the daily stock returns on NSE, based
on expected life options/RSU of each vest. The expected life of share option is based on historical data and current expectation
and not necessarily indicative of exercise pattern that may occur.
Fair value of PRSU granted during the year

The fair value of PRSU granted is estimated using the Monte Carlo simulation model for performance based conditions, after
applying the key assumption which are tabulated below. The expected volatility has been calculated using the daily stock returns
on NSE, based on expected life PRSU of each vest. The expected life of share option is based on historical data and current
Inputs in to the pricing model

Option Plan
Particulars
RSU 2021 PRSU 2021 ESOP 2020 RSU 2020
Weighted Average Fair value of option/RSU/ PRSU 2,699 2,439 1,200 2,686
Spot share price 2,999 2,797 3,210 3,210
Exercise price 2 2 2,085 2
Expected average volatility 36.11% 33.30% 26.42% 26.61%
4 years 4 years 7 Years 7 Years
Option life
4.22% 3.16% 3.91% 3.91%
Dividend yield
6.27% 5.16% 5.88% 5.88%
Average risk-free interest rate
Movements in share options during the year


Rs. Rs.
Outstanding at the beginning of the year 267,145 2,044 245,061 2,031
Granted during the year - - 101,375 2,085
Forfeited during the year 47,913 2,011 41,679 2,026
Exercised during the year 25,891 1,952 37,612 2,085
Outstanding at the end of year 193,341 2,065 267,145 2,044
Exercisable at the end of year 78,682 2,194 50,538 2,267
Movements in RSU/PRSU during the year


Rs. Rs.
Outstanding at the beginning of the year 11,241 2.00 12,918 2.00
Granted during the year 74,105 2.00 1,560 2.00
Forfeited during the year 15,195 2.00 - -
Exercised during the year 5,833 2.00 3,237 2.00
Outstanding at the end of year 64,318 2.00 11,241 2.00
Exercisable at the end of year 2,232 2.00 3,802 2.00
29

Share options exercised during the year
Weighted Average Weighted Average
Option Plan No. of options Share price at No. of options Share price at
exercised exercise date exercised exercise date
Rs. Rs.
ESOP 2014 - - 864 3,224
ESOP 2016 336 2,870 7,941 3,101
ESOP 2017 265 2,898 2,628 3,164
RSU 2017 2,128 2,786 - -
ESOP 2018 10,726 2,852 13,344 3,014
RSU 2018 1,674 2,786 1,674 2,361
ESOP 2019 9,458 2,718 12,835 3,202
RSU 2019 1,563 2,668 1,563 3,238
ESOP 2020 5,106 2,698 - -
RSU 2020 468 2,668 - -
Share options/RSU / PRSU outstanding at end of the year

Remaining Remaining
Options Options
contractual life contractual life Exercise Price
Options/ RSU /PRSU Plans outstanding as at outstanding as at
(in Years) as on (in Years) as on Rs.
March 31, 2022 March 31, 2021
March 31, 2022 March 31, 2021
ESOP 2014 - - - 0.56 2,159
ESOP 2016 9,717 11,349 1.39 2.39 2,469
RSU 2016 - - 1.39 2.39 2
ESOP 2017 12,687 14,910 2.59 3.59 2,818
3.59 2
RSU 2017 - 2,128 2.59
4.98 2,033
ESOP 2018 61,780 82,406 3.98
4.84 2
RSU 2018 2,232 3,906 3.84
5.56 1,745
ESOP 2019 40,362 64,480 4.56 5.56 2
RSU 2019 2,084 3,647 4.56 6.58 2,085
ESOP 2020 68,795 94,000 5.58 6.58 2
RSU 2020 1,092 1,560 5.58 - 2
RSU 2021 30,632 - 3.37 - 2
PRSU 2021 28,279 - 3.37
257,660 278,386
During the year ended March 31, 2022, the Group recorded an employee stock compensation expense of Rs. 10.00 crores
(previous year Rs. 8.86 crore) in the Statement of Profit and Loss and the balance in share options outstanding account as at
March 31, 2022 is Rs. 24.45 crore (previous year Rs. 19.04 crore).


42. FINANCIAL INSTRUMENTS

42.1 Capital Management
The Group manages its capital to ensure that the Group will be able to continue as a going concern while maximising the
return to stakeholders through efficient allocation of capital towards expansion of business, optimisation of working capital
requirements and deployment of surplus funds into various investment options.
The Management reviews the capital structure of the Group on a regular basis. As part of this review, the Management
considers the cost of capital and the risks associated with the movement in the working capital.
The following table summarises the capital of the Group:
As at As at
Particulars
March 31, 2022 March 31, 2021
Debt (Borrowings including current maturity) 353.48 342.03
Share capital 39.96 39.96
Equity reserves 15,806.69 15,376.46
Total Equity 15,846.65 15,416.42
Gearing Ratio 2.23% 2.22%
Categories of financial instruments

As at As at
Particulars
March 31, 2022 March 31, 2021
Financial assets
Non-current
Investments 1,485.56 1,338.10
Current
Investments 5,819.26 6,170.78
Non-current
Loans 17.43 16.73
Others 42.01 35.91
Current
Trade receivables 2,158.49 2,274.68
Cash and bank balances 299.74 396.24
Loans 22.81 22.95
Other financial assets 475.00 382.55
Total 11,340.84 11,302.99
Financial liabilities at amortised cost
Non-Current
Borrowings 36.17 45.18
Current
Trade payables 4,343.09 5,264.18
Total 5,248.88 6,161.76
29

42.2 Fair value measurements
The Group uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:
The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:
Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets
for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from
prices).
Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market
data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same
instrument nor are they based on available market data.
Fair value of the Group's financial assets that are measured at fair value on a recurring basis:
There are certain Group's financial assets which are measured at fair value at the end of each reporting period. Following
table gives information about how the fair values of these financial assets are determined:
Particulars
Non-current
Investments in debentures - - 150.00
19.88 - -
Investments in equity instruments
Current
5,695.23 91.39 -
Investments in mutual funds

Particulars
Non-current
Current
Investments in mutual funds 5,120.10 1,016.84 -
33.85 - -
Investments in equity instruments



42.2Fair value measurements (Contd..)
Fair value of the Group's financial assets that are not measured at fair value (but fair value disclosures are required)
Except as detailed out in the following table, the management considers that the carrying amounts of financial assets and
financial liabilities recognised in the financial instruments approximate their fair values:
March 31, 2022 March 31, 2021
Particulars
Carrying amount Fair value Carrying amount Fair value
Non-current
Current
Fair value hierarchy

Particulars March 31, 2022 March 31, 2021
Level 2 Level 2
Non-current
Current
The fair value of the financial assets and financial liabilities are included at the amount that would be received to sell an
asset and paid to transfer a liability in an orderly transaction between the market participants. The following methods and
assumptions were used to estimate the fair values:
- Investments traded in active markets are determined by reference to quotes from the financial institutions - Net asset
value (NAV) for investments in mutual funds declared by mutual fund house, quoted price of equity shares in the stock
exchange etc.
- The fair value of bonds is based on direct market observable inputs.
- Trade receivables, cash and cash equivalents, other bank balances, loans, other current financial assets, trade
payables, current lease liabilities, current borrowings and other current financial liabilities: Fair value approximate their
carrying amounts largely due to short-term maturities of these instruments.
- The Company’s non current lease liabilities, non current borrowings and non current financial assets are measured at
amortised cost, which approximates the fair value as on the reporting date.
- Management uses its best judgment in estimating the fair value of its financial instruments. However, there are
inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value
estimates presented above are not necessarily indicative of all the amounts that the Group could have realised or
paid in sale transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the
respective reporting dates may be different from the amounts reported at each year end.
- There are no transfers between Level 1, Level 2 and Level 3 during the year ended March 31, 2022 and March 31, 2021.
30

42.3Financial risk management objectives and Policies
Financial risk management objectives
The Group's Corporate Treasury function monitors and manages the financial risks relating to the operations of the Group.
These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Group seeks to minimise the effects of these risks by using derivative financial instruments, diversification of
investments, credit limit to exposures, etc., to hedge risk exposures. The use of financial instruments is governed by the
Group's policies on foreign exchange risk and the investment. The Group does not enter into or trade financial instruments,
including derivative financial instruments, for speculative purposes.
Market risk
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a
change in the price of a financial instrument. The Group's activities expose it primarily to the financial risks of changes in
foreign currency exchange rates and interest rates risk/ liquidity which impact returns on investments. The Group enters
into derivative financial instruments to manage its exposure to foreign currency risk including export receivables and
import payables. Future specific market movements cannot be normally predicted with reasonable accuracy.
Foreign currency risk management

The Group undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign
exchange contracts.
The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the end of
the reporting period are as follows.
Amount in Amount in Amount in
Foreign currency exposure as at March 31, 2022
USD EURO JPY
Trade Receivables 4.01 - 1.03
Trade Payables 0.55 0.45 0.47
Capital Creditors - 0.01 -
Borrowings 2.73 - -
Amount in Amount in Amount in Chinese

SGD COP Yuan (RMB)
Amount in Amount in Amount in Amount in

USD EURO JPY SGD
Trade Receivables 3.10 - - -
Trade Payables 1.59 0.12 15.67 0.01
Capital Creditors 0.00 0.23 - -
Forward cover-Bought 1.20 - - -
Borrowings 1.23 - - -
Amount in Amount in Amount in Chinese

BDT COP Yuan (RMB)
Trade Receivables 2.02 1.08 -
Borrowings 40.00 4.99 -



42.3 Financial risk management objectives and Policies (Contd..)
Foreign currency sensitivity
The following table details the Group’s sensitivity to a 5% increase and decrease in the Rs. against the relevant foreign
currencies. (+)(-) 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel
and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity
analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period
end for a 5% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rs.
strengthens 5% against the relevant currency. For a 5% weakening of the Rs. against the relevant currency, there would be a
comparable impact on the profit or equity, and the balances below would be negative.
(Rs. In Crores)
Currency
5% increase 5% decrease 5% increase 5% decrease
Receivable
USD 15.18 (15.18) 11.31 (11.31)
JPY 0.03 (0.03) - -
BDT - - 0.09 (0.09)
- - 1.08 (1.08)
COP
Payable
(2.08) 2.08 (5.81) 5.81
USD
(0.01) 0.01 (0.06) 0.06
JPY
(1.88) 1.88 (0.52) 0.52
EUR
(0.01) 0.01 (0.01) 0.01
SGD
(0.04) 0.04 (0.10) 0.10
RMB
- - (0.19) 0.19
BDT
(0.60) 0.60 (0.85) 0.85
COP
Capital Creditors
(0.01) 0.01 (0.00) 0.00
USD
(0.03) 0.03 (1.04) 1.04
EUR
- - 4.38 (4.38)
Forward cover-Bought
Borrowings
(1.03) 1.03 (0.05) 0.05
USD - - (1.73) 1.73
BDT - - (4.99) 4.99
COP
Impact on profit or loss as at the end of the reporting period 9.51 (9.51) 1.51 (1.51)
Impact on total equity as at the end of the reporting period 7.11 (7.11) 1.13 (1.13)
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
exposure at the end of the reporting period does not reflect the exposure during the year/ in future years.
Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk
of financial loss from defaults. The Group's exposure and wherever appropriate, the credit ratings of its counterparties are
continuously monitored and spread amongst various counterparties. Credit exposure is controlled by counterparty limits
that are reviewed and approved by the management of the Group.
Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, investments
in debt instruments/ bonds, trade receivables, loans and advances and derivative financial instruments. None of the
financial instruments of the Group result in material concentrations of credit risks.
The Group write off the receivable in case of certainty of the irrecoverability.
30

Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and
not impaired, there were no indication of default in repayment as at the year end.
The age analysis of trade receivables as of the balance sheet date have been considered from the due date and disclosed in
the Note no. 15 above.
The Group has used a practical expedient and analysed the recoverable amount of receivables on an individual basis by
computing the expected loss allowance for financial assets based on historical credit loss experience.
Movement in the expected credit loss allowance of trade receivables

For the year ended
For the year ended
March 31, 2022
Balance at beginning of the year 71.32
117.64
Add: Provided during the year 58.97
22.98
Less: Reversals of provision 12.26
23.53
Less: Amounts written back 0.39
0.19
Balance at the end of the year 117.64
116.90
Other price risks including interest rate risk

The Group has deployed its surplus funds into various financial instruments including units of mutual funds, bonds/
debentures, etc. The Group is exposed to price risks arising from investments in these funds. The value of these
investments is impacted by movements in interest rates , liquidity and credit quality of underlying securities.
Price sensitivity analysis

The sensitivity analyses has been determined based on the exposure to price risks at the end of the reporting period.
If prices had been 1% higher/lower:
The profit for the year ended March 31, 2022 would increase/decrease by Rs. 71.55 crores (for the year ended March 31,
2021: increase/decrease by Rs. 75.09 crores).
Liquidity risk and interest rate risk on financial liabilities

Liquidity risk represents the inability of the Group to meet its financial obligations within stipulated time. To mitigate this
risk, the Group maintains sufficient liquidity by way of readily convertible instruments and working capital limits from banks.
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Group is exposed to interest rate risk on the financial liabilities arising out of current and non current
borrowings with floating interest rates. These borrowings expose the Group to cash flow interest rate risk. The exposure
of the Group’s borrowing to interest rate changes as reported to the management at the end of the reporting period are
as follows:
As at As at
Variable-rate instruments
March 31, 2022 March 31, 2021
The profit for the year ended March 31, 2022 would increase/decrease by Rs. 3.48 crores (for the year ended March 31,
2021: increase/decrease by Rs. 2.77 crores) for a 1% increase/decrease in interest rate on average financial liabilities during
the respective year.
The Group has lease liabilities which have been accounted with incremental borrowing rate and are therefore not subject to
interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because
of a change in market interest rates.



Maturity profile of financial liabilities:
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date
on an undiscounted basis:
Particulars
(i) Borrowing 317.31 36.17 - 353.48
(ii) Trade payables 4,343.09 - - 4,343.09
(iii) Other financial liabilities 145.58 83.37 90.95 319.90
(iv) Lease liabilities 46.65 183.13 113.01 342.79

Particulars
(i) Borrowing 296.85 45.18 - 342.03
(ii) Trade payables 5,264.18 - - 5,264.18
(iii) Other financial liabilities 167.52 80.37 87.67 335.56
(iv) Lease liabilities 42.89 164.37 133.53 340.79
The surplus funds with the Group and operational cash flows will be sufficient to dispose the financial liabilities with in the
maturity period.
43. Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial
Statements to Schedule III to the Companies Act 2013:
Net Assets i.e. total asset Share in other Share in total
Share in profit/ (loss)
less total liabilities comprehensive income comprehensive income
Name of the Entity As % of

As % of Amount Amount As % of other Amount As % of total Amount
Consolidated
Consolidated (Rs. in (Rs. in comprehensive (Rs. in comprehensive (Rs. in
Profit or
Net Assets crores) crores) income crores) income crores)
(Loss)
Parent Hero MotoCorp Limited 95.45% 15,782.92 98.42% 2,473.02 100.93% (5.44) 98.41% 2,467.58
Subsidiaries Indian
HMC MM Auto Limited 0.14% 23.95 -0.45% (11.26) -0.93% 0.05 -0.45% (11.21)
Foreign
2.07% 342.22 0.35% 8.79 - - 0.35% 8.79
HMCL Netherlands BV
0.34% 56.65 -0.07% (1.80) - - -0.07% (1.80)
HMCL Colombia SAS
HMCL Niloy Bangladesh 1.64% 271.26 1.53% 38.33 - - 1.53% 38.33
Limited
0.14% 23.65 0.00% (0.06) - - 0.00% (0.06)
HMCL Americas Inc.
0.21% 34.92 0.23% 5.77 - - 0.23% 5.77
HMCL TechCenter
Germany Gmbh 100.00% 16,535.57 100.00% 2,512.79 100.00% (5.39) 100.00% 2,507.40
Total
(2,743.38) 15.30 5.68 20.98
Adjustments arising out
of consolidation (148.05) (12.17) (1.84) (14.01)
Associates* Non controlling interest
Indian 12.72% 2,015.38 -3.30% (76.54) 28.70% (0.70) -3.34% (77.24)
Hero FinCorp Limited 1.18% 187.13 -5.29% (122.51) 7.72% (0.19) -5.30% (122.70)
Ather Energy Private
Limited 15,846.65 2,316.88 (2.44) 2,314.44
Total
* Investments accounted as per equity method.
30
44. CHANGE IN CLASSIFICATION

Pursuant to amendment in Schedule III to the Companies Act, 2013, effective from 1 April 2021, the Group has modified the
classification of :
As per earlier Revised

Difference
reported classification
Assets
Non current assets
Financial assets
Loans 52.64 16.73 (35.91)
- 35.91 35.91
Others
Current assets
Financial assets
39.77 22.95 (16.82)
Loans
365.73 382.55 16.82
Others
Current liabilities
Financial liabilities
285.16 296.85 11.69
Borrowings
179.21 167.52 (11.69)
Other Financial liabilities
45. ADDITIONAL INFORMATION

(i) No proceeding has been initiated or pending against the group for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) None of the entities within the Group and its associates have been declared as wilful defaulter by any bank or financial
Institution or other lender.
(iii) The group has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.
(iv) There are no transaction which has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961.
(v) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
(vi) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Holding Company or its subsidiary company or associate companies incorporated in
India to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate
Beneficiaries”) by or on behalf of the Holding Company or its subsidiary company or its associate companies
incorporated in India or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.


45. ADDITIONAL INFORMATION (CONTD..)

(vii) There are no funds which have been received by the Holding Company or its subsidiary company or associate companies
incorporated in India from any person or entities, including foreign entities (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Holding Company or its subsidiary company or associate companies
incorporated in India shall:
a) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate
Beneficiaries”) by or on behalf of the Funding Party or
b) provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(viii) The Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) has one CICs as part
of the Group.
DIN: 00004223 DIN: 02106990


Date: May 03, 2022 Date: May 03, 2022
30
Form AOC-1
Statement pursuant to Section 129 (3) of the Companies Act, 2013 containing salient features of financial statements of
Subsidiaries and Associates
PART “A”: SUBSIDIARIES

Particulars
Name of the Subsidiary5 HMC MM HMCL Niloy Bangladesh HMCL Tech Center
HMCL Americas Inc HMCL Netherlands BV HMCL Colombia SAS2
Auto Limited Limited2 Germany GmbH
Year ended
Year ended Year ended Year ended Year ended Year ended
Reporting period/Year March 31,
March 31, 2022 March 31, 2022 March 31, 2022 March 31, 2022 March 31, 2022
2022
Reporting Currency INR INR USD INR USD INR COP3 INR BDT3 INR EURO
Exchange Rate on 1.00 75.79 1.00 75.79 1.00 0.02 1.00 0.88 1.00 83.87 1.00
the last date of
Financial Year
Country of Registration India USA Netherlands Colombia Bangladesh Germany
Reporting amounts in INR INR USD INR USD INR COP3 INR BDT3 INR EURO
Crore Crore MN Crore MN Crore Thousand Crore MN Crore MN
MN
Share Capital 80.00 26.53 3.50 342.63 45.21 126.28 62.76 86.44 981.30 21.18 2.53
Reserves & Surplus (56.06) (2.88) (0.38) (0.41) (0.05) (69.62) (34.60) 184.82 2,098.08 13.74 1.64
Total Assets 211.13 23.65 3.12 342.58 45.20 355.55 176.71 610.44 6,929.75 53.20 6.34
Total Liabilities1 211.13 23.65 3.12 342.58 45.20 355.55 176.71 610.44 6,929.75 53.20 6.34
Investment - - - 337.21 44.49 - - 32.64 370.63 - -
Turnover4 228.40 0.01 0.00 10.23 1.35 391.86 194.76 664.98 7,548.91 110.54 13.18
Profit/(Loss) Before (11.21) (0.06) (0.01) 8.9 1.17 (1.87) (0.93) 44.16 501.26 7.62 0.91
Taxation
Provision for Taxation - - - - - - - (5.47) (62.07) (2.03) (0.24)
Profit/(Loss) after (11.21) (0.06) (0.01) 8.9 1.17 (1.87) (0.93) 38.69 439.19 5.59 0.67
Taxation
Proposed Dividend - - - - - - - - - - -
%age holding 60% 100% 100% 68% 55% 100%
Note
1. Total liabilities are inclusive of share capital and reserves and surplus.
2. HMCL Colombia SAS and HMCL Niloy Bangladesh Ltd are subsidiaries of HMCL Netherlands BV.
3. COP- Colombian Peso; BDT - Bangladesh Taka.
4. Turnover includes other income and other operating revenue.
5. There are no subsidiaries which have been liquidated or sold during the year.

Form AOC-1
PART “B”: ASSOCIATES

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies
S.
no. Name of Associates** Hero FinCorp Limited Ather Energy Private Limited
1. Latest audited Balance Sheet Date Year ended March 31, 2022 Year ended March 31, 2022
2. Shares of Associate held by the company on the year end
No. 5,24,31,893 1,80,794
Amount of Investment in Associates (Rs. in crores) 1,469.04 504.58
Extend of Holding % 41.19% 37.65%
3. Description of how there is significant influence Associates Associates
4. Reason why the associate is not consolidated - -
5. Networth attributable to Shareholding as per latest audited Balance Sheet 1,963.74 84.67
(Rs. in crores)
6. Profit / (Loss) for the year
i. Considered in Consolidation (82.48) (122.70)
ii. Not Considered in Consolidation* (111.11) (221.90)
* Represent portion of Profit attributable to other shareholders.
** There are no associate or joint venture which have been liquidated or sold during the year.
For and on behalf of the Board of Directors of

Pawan Munjal M. Damodaran

Chairman & CEO Chairman Audit Committee
DIN: 00004223 DIN: 02106990
Niranjan Kumar Gupta Pradeep Dinodia Dhiraj Kapoor

Chief Financial Officer Non-Executive Director Company Secretary
DIN: 00027995
Place: Gurugram
Date: May 03, 2022
30

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FINANCIAL STATEMENTS

Independent Auditors’ Report

To the Members of Hero MotoCorp Limited

In our opinion and to the best of our information and according

KEY AUDIT MATTERS

Hero MotoCorp Ltd. | Annual Report 2021-22 1

As part of an audit in accordance with SAs, we exercise

Hero MotoCorp Ltd. | Annual Report 2021-22 3

Independent Auditors’ Report (Contd.)

to draw attention in our auditor’s report to the related

For B S R & Co. LLP

Hero MotoCorp Ltd. | Annual Report 2021-22

Annexure A referred to in the Independent Auditors’ Report

(d) According to the information and explanations

Hero MotoCorp Ltd. | Annual Report 2021-22

Annexure A referred to in the Independent Auditors’ Report (Contd.)

(viii) According to the information and explanations given to us

Hero MotoCorp Ltd. | Annual Report 2021-22

Annexure A referred to in the Independent Auditors’ Report (Contd.)

(xix)According to the information and explanations given

Annexure B to the Independent Auditors’ report

Report on the internal financial controls with reference to

AUDITORS’ RESPONSIBILITY with generally accepted accounting principles. A company's

Hero MotoCorp Ltd. | Annual Report 2021-22

Standalone Balance Sheet

(Amount in crores of INR)

Hero MotoCorp Limited

ICAI Firm’s Registration Pawan Munjal M. Damodaran

Vikram Advani Niranjan Kumar Gupta Pradeep Dinodia Dhiraj Kapoor

Place: Gurugram Place: Gurugram

(Amount in crores of INR)

Hero MotoCorp Limited

ICAI Firm’s Registration Pawan Munjal M. Damodaran

Vikram Advani Niranjan Kumar Gupta Pradeep Dinodia Dhiraj Kapoor

Place: Gurugram Place: Gurugram

Hero MotoCorp Ltd. | Annual Report 2021-22

Standalone Statement of Cash Flow

(Amount in crores of INR)

(Amount in crores of INR)

Vikram Advani Niranjan Kumar Gupta Pradeep Dinodia Dhiraj Kapoor

Place: Gurugram Place: Gurugram

Hero MotoCorp Ltd. | Annual Report 2021-22

Standalone Statement of Changes in Equity

(Amount in crore of INR)

A. EQUITY SHARE CAPITAL

Vikram Advani Niranjan Kumar Gupta Pradeep Dinodia Dhiraj Kapoor

Place: Gurugram Place: Gurugram

1. GENERAL INFORMATION amount that reflects the consideration which the

Hero MotoCorp Ltd. | Annual Report 2021-22

Notes forming part of the standalone financial statements

At the date of commencement of the lease, the

(excluding net interest), is reflected immediately in the

• net interest expense or income; and 3.8 Taxation

Hero MotoCorp Ltd. | Annual Report 2021-22

Notes forming part of the standalone financial statements

reporting period, to recover or settle the carrying amount

The amount initially recognised for internally-generated

Hero MotoCorp Ltd. | Annual Report 2021-22

Notes forming part of the standalone financial statements