Q3FY2025 Results of Tata Capital

Document Summary

The document comprises two separate Independent Auditor's Reports regarding Tata Capital Limited: one on Standalone Audited Financial Results and the other on Consolidated Audited Financial Results. Both reports address the quarter and nine months ended December 31, 2024, in compliance with Regulation 52 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Both reports are addressed to the Board of Directors of Tata Capital Limited.

Key Highlights from the Standalone Financial Results Report:

• Opinion: The auditors (MSKA & Associates and M. P. Chitale & Co.) express an unmodified opinion on the standalone financial results, stating they present a true and fair view in accordance with Regulation 52 and Indian Accounting Standards (Ind AS).
• Basis for Opinion: The audit was conducted in accordance with Standards on Auditing (SAs) under Section 143(10) of the Companies Act, 2013. Sufficient and appropriate audit evidence was obtained to support the opinion.
• Management Responsibilities: The Board of Directors is responsible for the preparation and presentation of the standalone financial results, ensuring they provide a true and fair view in accordance with Indian Accounting Standards and comply with Regulation 52. This includes maintaining adequate accounting records, selecting appropriate accounting policies, and maintaining effective internal financial controls.
• Auditor's Responsibilities: The auditor's objectives include obtaining reasonable assurance about whether the standalone financial results are free from material misstatement, whether due to fraud or error. This includes exercising professional judgment, maintaining professional skepticism, and assessing risks of material misstatement.
• Other Matters: The Statement of the Company for the quarter and nine months ended December 31, 2023, was reviewed by the predecessor auditor whose report dated February 13, 2024, expressed an unmodified conclusion on those standalone financial results. The Statement includes the standalone financial results of the Company for the year ended March 31, 2024, which were jointly audited by one of the erstwhile joint statutory auditors along with one of the current joint statutory auditor, whose report dated May 10, 2024 expressed an unmodified opinion on those standalone financial results.
• Financial Performance: The report details the standalone financial results for the quarter and nine months ended December 31, 2024, along with comparative figures for previous periods. Key figures include revenue from operations, other income, expenses, profit before tax, tax expense, and profit for the period. Key ratios like debt-equity ratio, debt service coverage ratio, interest service coverage ratio, total debts to total assets, net profit margin, etc are included.
• The financial results also mentions the implementation of a scheme of arrangement for amalgamation of Tata Motors Finance Limited into TCL, pending NCLT approval.
• The fund raised by the Non-Convertible Debt Securities has been utilized towards various activities including lending, investments, and business operations.

Key Highlights from the Consolidated Financial Results Report:

• Opinion: The auditors express an unmodified opinion on the consolidated financial results, stating they present a true and fair view of the Group (Tata Capital Limited and its subsidiaries) and its associate’s net profit after tax and total comprehensive income in accordance with Regulation 52 and applicable accounting standards.
• Basis for Opinion: The audit was conducted in accordance with Standards on Auditing (SAs) under Section 143(10) of the Companies Act, 2013. The opinion is based on the consolidated financial results, as well as the reports of other auditors on the separate audited financial results of the subsidiaries.
• Management Responsibilities: Similar to the standalone report, the Board of Directors is responsible for the preparation and presentation of the consolidated financial results, ensuring compliance with applicable accounting standards and Regulation 52. This includes maintaining adequate accounting records, selecting appropriate accounting policies, and maintaining effective internal financial controls.
• Auditor's Responsibilities: The auditor's responsibilities mirror those in the standalone report, focusing on obtaining reasonable assurance about the absence of material misstatement and exercising professional judgment and skepticism.
• Other Matters: The report refers to the inclusion of audited interim financial results of nine subsidiaries, unaudited interim financial results of eight subsidiaries, and unaudited financial results of fifteen associates. The auditor's opinion is based on the reports of other auditors and the unaudited financial information provided by management.
• Financial Performance: The report details the consolidated financial results for the quarter and nine months ended December 31, 2024, along with comparative figures. Key figures include revenue from operations, other income, expenses, profit before tax, tax expense, and profit for the period. Key ratios like debt-equity ratio, debt service coverage ratio, interest service coverage ratio, total debts to total assets, net profit margin, etc are included.
• List of Subsidiaries and Associates: Annexure 1 provides a list of the Group's subsidiaries and associates, along with their relationships with the Holding Company.
• The financial results also mentions the implementation of a scheme of arrangement for amalgamation of Tata Motors Finance Limited into TCL, pending NCLT approval.

Overall Summary:

In summary, the documents contain the Independent Auditor's Reports for both Standalone and Consolidated Audited Financial Results of Tata Capital Limited, confirming that the results provide a true and fair view of the company's financial performance for the quarter and nine months ended December 31, 2024, in accordance with applicable regulations and accounting standards.