Tata Motors : Jaguar Land Rover Ningbo Trading Co. Limited

Jaguar Land Rover (Ningbo) Trading Co., Ltd.

ENGLISH TRANSLATION OF FINANCIAL STATEMENTS

FOR THE YEAR FROM 1 JANUARY 2023 TO 31 DECEMBER 2023

IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH

TRANSLATION, THE CHINESE VERSION WILL PREVAIL

AUDITOR'S REPORT

KPMG Huazhen Hu Shen Zi No. 2403302

To the board of directors of Jaguar Land Rover (Ningbo) Trading Co., Ltd.,

1. Opinion

We have audited the attached financial statements (from Page 1 to Page 21) of Jaguar Land Rover (Ningbo) Trading Co., Ltd. (hereinafter referred to as "Jaguar Land Rover (Ningbo) Company"), which comprise the company balance sheets as at 31 December 2023, and the company's income statement and profit appropriation and cash flow statements 2023, and the notes to the financial statements.

In our opinion, the attached financial statements have been properly prepared in compliance with the Accounting Regulations for Business Enterprises (ARBE) issued by Ministry of Finance of the People's Republic of China, and present fairly, in all material respects, the financial position of Jaguar Land Rover (Ningbo) Company as of 31 December 2023, and the company's results of operations and cash flows 2023.

1. Basis for Opinion

We conducted our audit in accordance with Auditing Standards for CPAs of China (hereinafter referred to as "Auditing Standards"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements by CPAs section of our report. We are independent of Jaguar Land Rover (Ningbo) Company in accordance with the Code of Ethics for Professional Accountants of China, and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Page 1 of 3

AUDITOR'S REPORT (Cont.)

KPMG Huazhen Hu Shen Zi No. 2403302

1. Responsibility of the Management Layer and Governance Layer for the Financial Statements

Management layer is responsible for preparing the financial statements in accordance with Accounting Regulations for Business Enterprises to achieve fair presentation of the financial statements, and designing, implementing and maintaining internal control which is necessary to enable that the financial statements are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the management layer is responsible for assessing the ability to continue as a going concern of Jaguar Land Rover (Ningbo) Company, disclosing matters related to going concern and using the going concern assumption unless Jaguar Land Rover (Ningbo) Company either intends to liquidate or to cease operations, or has no realistic alternative but to do so.

The governance layer is responsible for overseeing the financial reporting process of Jaguar Land Rover (Ningbo) Company.

IV. Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 Auditing Standards 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 financial statements.

As part of an audit in accordance with Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also carry out the following tasks:

1. Identify and assess the risks of material misstatement of the 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 one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of its internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management layer.

Page 2 of 3

AUDITOR'S REPORT (Cont.)

KPMG Huazhen Hu Shen Zi No. 2403302

IV. Auditor's Responsibilities for the Audit of the Financial Statements (Cont.)

1. Conclude on the appropriateness of the management layer's use of the going concern assumption. Meanwhile, based on the audit evidence obtained, conclude whether a material uncertainty exists related to events or conditions that may cast significant doubt on Jaguar Land Rover (Ningbo) Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause Jaguar Land Rover (Ningbo) Company to cease to continue as a going concern.
2. Evaluate the overall presentation (including the disclosures), structure and content of the financial statements, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the governance layer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

KPMG Huazhen LLP (SGP)

Chinese Certified Public Accountant

Shanghai Branch

Feng Yijia

Shanghai, China	Zhu Yijia
	Date:

Page 3 of 3

Jaguar Land Rover (Ningbo) Trading Co., Ltd.

Balance sheet as at 31 December 2023

(Expressed in Renminbi Yuan)

	Note	2023	2022
Assets
Current assets
Cash at bank and on hand	5	286,435,302.39	550,066,227.94
Short-term investments	6	1,813,021,032.09	2,163,592,509.03
Interest receivable		3,438,978.68	3,202,373.31
Other receivables	7	152,131.65	1,532,670.97
Payments in advance		81,161,750.00	80,399,508.51
Inventories	8	686,560,696.57	913,038,225.54
Other current assets	9	33,680,947.25		-
Total current assets		2,904,450,838.63	3,711,831,515.30
Fixed assets
Original price of fixed assets		1,631,823.32	1,631,823.32
Less: Impairment provision of fixed
assets		(1,631,823.32)		(1,631,823.32)
Net fixed assets	10	-	-
Long-term deferred expenses		3,669,724.75	4,220,183.47
Total assets
	2,908,120,563.38	3,716,051,698.77

The notes on pages 10 to 21 form part of these financial statements.

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Jaguar Land Rover (Ningbo) Trading Co., Ltd.

Balance sheet as at 31 December 2023 (continued)

(Expressed in Renminbi Yuan)

	Note	2023	2022
Liabilities and owner's equities
Current liabilities
Accounts payable		658,970,743.27	505,100,204.30
Deposit received		170,444,651.09	94,720,636.53
Taxes payable	4(c)	289,125,378.67	1,070,833,183.97
Other payables		191,207,549.31	218,114,968.91
Accrued expenses		297,424,274.04		323,345,226.56
Total current liabilities		1,607,172,596.38	2,212,114,220.27
Long-term liabilities
Long-term payables		67,218,205.71		36,789,797.63
Total long-term liabilities		67,218,205.71	36,789,797.63
Total liabilities		1,674,390,802.09	2,248,904,017.90

The notes on pages 10 to 21 form part of these financial statements.

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Jaguar Land Rover (Ningbo) Trading Co., Ltd.

Balance sheet as at 31 December 2023 (continued)

(Expressed in Renminbi Yuan)

	Note	2023	2022
Liabilities and owner's equities (cont.)
Owner's equities
Paid-in capital	11	1,000,000.00	1,000,000.00
Surplus reserves	12	500,000.00	500,000.00
Undistributed profits	13	1,232,229,761.29		1,465,647,680.87
Total owner's equities		1,233,729,761.29	1,467,147,680.87
Total liabilities and owner's equities
	2,908,120,563.38	3,716,051,698.77

These financial statements have been approved by the Board of Directors of the Company.

Pan Qing	Tim Howard	Fu Rong	(Company stamp)
Legal representative	The person in charge	The head of the
	of the accounting	accounting department
	affairs
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)
Date:

The notes on pages 10 to 21 form part of these financial statements.

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Jaguar Land Rover (Ningbo) Trading Co., Ltd.

Income statement and profit appropriation

for the year 2023

(Expressed in Renminbi Yuan)

	Note	2023	2022
Revenues from principal activities	14	11,958,118,624.28	11,247,809,147.46
Less: Cost of sales from principal
activities		(10,294,835,316.40)	(9,803,173,259.99)
Business taxes and surcharges
from principal activities	4(a)	(10,882,938.09)		(50,112,116.58)
Profit from principal activities		1,652,400,369.79	1,394,523,770.89
Less: Operating expenses		(254,972,552.02)	(193,673,483.28)
Administrative expenses		(253,855,927.81)	(145,175,131.32)
Financial expenses	15	4,193,185.51		13,532.02
Operating profit		1,147,765,075.47	1,055,688,688.31
Add: Investment income	16	63,842,222.73	49,561,615.35
Subsidy income		253,861,098.83		130,714,700.00
Total profit		1,465,468,397.03	1,235,965,003.66
Less: Income tax	4(b)	(349,702,074.71)		(336,979,689.36)
Net profit		1,115,766,322.32		898,985,314.30

The notes on pages 10 to 21 form part of these financial statements.

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Jaguar Land Rover (Ningbo) Trading Co., Ltd.

Income statement and profit appropriation

for the year 2023 (continued) (Expressed in Renminbi Yuan)

'	Note	2023		2022
Net profit		1,115,766,322.32		898,985,314.30
Add: Undistributed profits at the beginning of the
year		1,465,647,680.87		566,662,366.57
Distributable profits		2,581,414,003.19		1,465,647,680.87
Less: Withdrawal of reserve funds	14(a)	-		-
Profits appropriated to the owner		2,581,414,003.19		1,465,647,680.87
Less: Cash profit appropriated to the owner	14(b)	(1,349,184,241.90)		-
Undistributed profits at the end of the year		1,232,229,761.29		1,465,647,680.87

The notes on pages 10 to 21 form part of these financial statements.

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Jaguar Land Rover (Ningbo) Trading Co., Ltd.

Cash flow statement

for the year 2023

(Expressed in Renminbi Yuan)

Note to the cash

flow statement

Cash flows from operating activities: Cash received from sale of goods Received tax refund

Cash received relating to other operating activities

Sub-total of cash inflows

Cash paid for purchasing goods and receiving services

Cash paid to and for employees Cash paid for all types of taxes

Cash paid relating to other operating activities

Sub-total of cash outflows

Net cash inflow from operating
activities	i

20232022

13,610,398,717.48 13,025,794,762.73

• 259,965,573.18
  259,342,615.51 133,490,512.28

13,869,741,332.99 13,419,250,848.19

(8,402,481,751.02) (8,368,370,104.30)

(137,447,061.03) (128,835,649.49)

(4,253,252,055.99) (2,519,565,603.25)

(405,162,546.54) (168,254,084.99)

(13,198,343,414.58) (11,185,025,442.03)

671,397,918.41 2,234,225,406.16

The notes on pages 10 to 21 form part of these financial statements.

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