TATA MANUFACTURING TECHNOLOGIES

(SHANGHAI) CO., LTD

AUDITORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2023
 Auditors’ Report

PCPAR (2024) No.ZA 40420

To the Board of Directors of Tata Manufacturing Technologies (Shanghai) Co., Ltd.,

Opinion
We have audited the accompanying financial statements of Tata Manufacturing Technologies (Shanghai)
Co., Ltd. (hereafter referred to as “the Company”), which comprise the balance sheet as at December
31, 2023, the income statement, cash flow statement and notes to the financial statements.
In our opinion, the accompanying financial statements are properly drawn up in accordance with the
provisions of the Accounting System for Business Enterprises so as to give a true and fair view of, in all
material respects, the financial position of the Company as at December 31, 2023, and of the financial
performance and cash flows of the Company for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards.
Our responsibilities under those standards are further described in the auditor’s responsibilities for the
audit of the financial statements section of our report. We are independent of the Company in
accordance with the Code of Professional Conduct and Ethics for Chinese Certified Public Accountants,
and we have fulfilled our other ethical responsibilities. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of management and those charged with governance for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with the provisions of the Accounting System for Business Enterprises and for devising and
maintaining a system of internal accounting controls necessary to permit the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing matters related to going concern, and using the going concern
assumption, unless management either intends to liquidate the entity or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.

Auditors’ Report Page 1

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 judgement and
maintain professional scepticism throughout the audit. We also:
a) 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 for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
b) 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 the Company’s internal control.
c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
d) Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the 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, to 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 the Company to cease to continue as a going concern.
e) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.

We communicate with those charged with governance 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.

Auditors’ Report Page 2

 TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD
BALANCE SHEET
Monetary Unit: CNY
ASSETS As of December 31, 2023 As of December 31, 2022 TOTAL LIABILITIES AND OWNERS' EQUITY As of December 31, 2023 As of December 31, 2022
CURRENT ASSETS： CURRENT LIABILITIES：
Cash and cash equivalents 17,675,496.67 10,869,217.79 Short-term loans - -
Short-term investments Notes payable - -
Notes receivable 6,950,000.00 2,100,000.00 Accounts payable 7,732,668.04 27,458,766.88
Accounts receivable 46,399,291.97 67,436,681.77 Advance from customers
Other receivables 1,312,972.34 955,355.33 Payroll and employee benefits payable 3,367,290.95 6,020,843.63
Advance to suppliers 824,348.89 3,321,290.30 Dividends payable
Inventories - - Taxes payable 1,984,503.15 2,122,808.06
Prepaid expenses - - Other payables 1,014,889.39 931,138.79
Other current assets - - Accrued expenses - -
TOTAL CURRENT ASSETS 73,162,109.87 84,682,545.19 TOTAL CURRENT LIABILITIES 14,099,351.53 36,533,557.36
FIXED ASSETS： NON-CURRENT LIABILITIES：
Fixed assets - cost 3,246,147.34 2,919,177.86 Long-term loans - -
Less: Accumulated depreciation 2,879,975.33 2,680,224.42 Long-term payables - -
Fixed assets - net book balance 366,172.01 238,953.44 Specific payables - -
Less: Impariment loss on fixed assets TOTAL NON-CURRENT LIABILITIES - -
Fixed assets-net book value 366,172.01 238,953.44 TOTAL LIABILITIES 14,099,351.53 36,533,557.36
Construction in progress - - OWNERS' EQUITY：
TOTAL FIXED ASSETS 366,172.01 238,953.44 Paid-in capital 3,077,237.50 3,077,237.50
INTANGIBLE ASSETS AND OTHER ASSETS： Capital reserves 156,292.83 156,292.83
Intangible assets 4,912.51 22,867.33 Surplus reserve 1,538,618.75 1,538,618.75
Long-term deferred expenses - - Undistributed profit 54,661,693.78 43,638,659.52
Other long-term assets - - TOTAL OWNERS' EQUITY 59,433,842.86 48,410,808.60
TOTAL INTANGIBLE ASSETS AND OTHER ASSETS 4,912.51 22,867.33
TOTAL ASSETS 73,533,194.39 84,944,365.96 TOTAL LIABILITIES AND OWNERS’ EQUITY 73,533,194.39 84,944,365.96
The accompanying notes are part of the financial statements.
The accompanying financial statements are to be signed by the following representatives:

Leagal representative： Head of Accounting Department ：

Financial Statements Page 1

 TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD
INCOME STATEMENT

Monetary Unit: CNY

Items Year 2023 Year 2022
Revenue 109,418,842.43 159,217,224.24
Less: Cost of sales 86,096,325.58 130,653,216.96
Sales tax and surcharges 359,072.21 585,003.05
Gross profit 22,963,444.64 27,979,004.23
Add: Other operating income - -
Less: Operating expenses 3,418,106.59 4,336,426.38
General and administrative expenses 7,681,481.26 9,019,881.47
Financial expenses (2,030,677.58) (272,518.08)
Operating profit 13,894,534.37 14,895,214.46
Add: Investment income - -
Non-operating income 900,289.73 885,607.91
Less: Non-operating expense - 19.23
Total profit before tax 14,794,824.10 15,780,803.14
Less: Income tax expenses 3,771,789.84 726,257.19
Net profit for the year 11,023,034.26 15,054,545.95
Add: Undistributed profit at the beginning of the period 43,638,659.52 28,584,113.57
Less: Withdrawal of reserve fund - -
Dividend distribution - -
Undistributed profit at the end of the period 54,661,693.78 43,638,659.52

Leagal representative： Head of Accounting Department ：

Financial Statements Page 2

 TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD
CASH FLOW STATEMENT

Monetary Unit: CNY

Items Year 2023 Year 2022
Cash flows from operating activities
Cash receipts from the sale of goods and the rendering of services 135,028,866.05 150,844,398.70
Receipts of tax refunds
Other cash receipts relating to operating activities 524,640.24 517,651.27
Sub-total of cash inflows from operating activities 135,553,506.29 151,362,049.97
Cash payments for goods purchased and services received 53,884,051.80 75,867,308.35
Cash payments to and on behalf of employees 55,643,077.81 66,157,392.74
Payments of all types of taxes 7,267,266.67 5,714,139.24
Other cash payments relating to operating activities 11,662,750.50 4,458,940.16
Sub-total of cash outflows from operating activities 128,457,146.78 152,197,780.49
Net cash flows from operating activities 7,096,359.51 (835,730.52)
Cash flows from investing activities
Cash receipts from disposals and withdrawal of investment - -
Cash receipts from returns on investments - -
Net cash receipts from disposals of fixed assets, intangible assets
- -
and other long-term assets
Other cash receipts relating to investing activities - -
Sub-total of cash inflows from investing activities - -
Cash payments to acquire and construct fixed assets, intangible
292,169.78 163,707.30
assets and other long-term assets
Cash payments to acquire investments
Other cash payments relating to investing activities
Sub-total of cash outflows from investing activities 292,169.78 163,707.30
Net cash flows from investing activities (292,169.78) (163,707.30)
Cash flows from financing activities
Cash from absorption of investments - -
Cash receipts from borrowings - -
Other cash receipts relating to financing activities - -
Sub-total of cash inflows from financing activities - -
Cash repayments of amounts borrowed - -
Cash payments for distribution of dividends or profits, or cash
- 103,605.26
payments for interest expenses
Other cash payments relating to financing activitie - -
Sub-total of cash outflows from financing activities - 103,605.26
Net cash flows from financing activities (103,605.26)
Effect of exchange rate changes on cash and cash equivalents 2,089.15 -
Net increase in cash and cash equivalents 6,806,278.88 (1,103,043.08)

Leagal representative： Head of Accounting Department ：

Financial Statements Page 3

 TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD
SUPPLEMENTARY INFORMATION TO THE CASH FLOW STATEMENT
Monetary Unit: CNY
Items Year 2023 Year 2022
1. Net profit adjusted to cash flow from operating activities
Net profit for the year 11,023,034.26 15,054,545.95
Add：Provision (Reversal) for impairment loss of assets 67,999.17 1,586,770.97
Depreciation of fixed assets 199,750.91 104,378.77
Amortization of intangible assets 17,954.82 56,202.99
Amortization of long-term deferred expenses - -
Amortization (Gains) of deferred expenses - -
Increase (Decrease) in accrued expenses - -
Losses (Gains) on disposal of fixed assets, intangible assets
- -
and other long-term assets
Losses (Gains) on scrapped fixed assets - -
Financial expenses (Gains) (1,990,102.52) (221,245.87)
Losses (Gains) arising from investments - -
Deferred tax credits (Debits) - -
Decrease (Increase) in inventories - -
Decrease (Increase) in operating receivables 18,258,715.03 (14,816,733.01)
Increase (Decrease) in operating payables (20,480,992.16) (2,599,650.32)
Others - -
Net cash flows from operating activities 7,096,359.51 (835,730.52)
Investing and financing activities that do not involve cash
2.
receipts and payments
Debt forgiveness - -
Convertible bonds maturing within one year - -
Fixed assets acquired under finance leases - -
3. Net increase in cash and cash equivalents
Ending balance of cash 17,675,496.67 10,869,217.79
Less: Beginning balance of cash 10,869,217.79 11,972,260.87
Add: Ending balance of cash equivalents - -
Less: Beginning balance of cash equivalents - -
Net increase in cash and cash equivalents 6,806,278.88 (1,103,043.08)

Leagal representative： Head of Accounting Department ：

Financial Statements Page 4

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.

NOTES TO THE FINANCIAL STATEMENTS

1. Corporate information

Tata Manufacturing Technologies (Shanghai) Co., Ltd. (hereinafter referred to as “the Company”), invested by Tata

Technologies Pte. Ltd., was approved to be established as a wholly foreign owned enterprise by Shanghai municipal

government in China on March 10, 2014.

The Company’s unified social credit code is 913100000885137316. The operation address is Floor 3, No. 2123 Pudong

Avenue, Free trade zone, Shanghai, China. The Company’s registered capital is USD 500,000, and the operation period

lasts from March 10, 2014 to March 9, 2044.

Its main scopes of business include enterprise management consulting, business information consulting, manufacturing

technology consulting, computer science engineering technology consulting; computer software design, development,

production, sales of self-manufactured products and supply after-sales services, graphic design and production, steel,

engineering machinery, auto parts, aerospace vehicle parts, wholesale, import and export of testing equipment,

commission agency (excluding auction) and related supporting services. (Application shall be processed in accordance

with relevant national regulations for commodities that state-owned trade management is not involved but quota and

license management is involved.). Projects that require legal approval shall only be operated with the approval of

relevant departments.

The Company’s ultimate controlling party is Tata Technologies Pte. Ltd.

2. Basis of preparation for financial statements

2.1 The basis

The financial statements have been prepared on the going concern basis, transactions and events recognized and

measured in the financial statements are in conformity with the Accounting System for Business Enterprises-Basic

principles and other relevant accounting principles.

2.2 Going concern

There exist no events or conditions that may cast significant doubt on the Company’s ability to continue as a going

concern within 12 months after the reporting period.

Notes to the financial statements page 1

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

3. Principal accounting policies and estimates

3.1 Accounting system and standards

The Company implements Accounting System for Business Enterprises and other supplementary regulations.

3.2 Accounting basis and measurement principle

The financial statements are prepared on accrual basis and follow the historical cost convention.

3.3 Accounting year

The accounting year is from January 1 to December 31.

3.4 Recording currency

Recording currency is CNY.

3.5 Accounting basis of foreign currencies

Foreign currency transactions are converted into CNY when the transaction occurs. Adjustments are made to convert

foreign currency accounts into CNY accounts according to the exchange rate prevailing on the balance sheet date. Gain

and loss on foreign currency transactions are charged into financial expenses.

3.6 Recognition criteria of cash and cash equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and

subject to an insignificant risk of changes in value.

3.7 Recognition standard and method provision for bad debts of accounts receivable

a) Receivables arising from rendering services shall initially be recognized at the actual cost.

b) Recognition of bad debts: Uncollected accounts arising from repeal and liquidation of debtor after taking legal clearance

procedures, from the death of debtor leaving no assets to pay off and nobody to assume the obligations, accounts

overdue with clear evidence to show that the debtors failed to repay obligations that are considered to be bad debts.

c) Recording of bad debts: Using allowance method.

Notes to the financial statements page 2

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

d) Provision for bad and doubtful debts: On the basis of the Company’s prior experience, the debtor’s actual financial

position, its cash flow and other relevant information, the specific identification method is adopted for those

receivables that obviously differ from others regarding collectability. Provision for the remaining receivables (excluding

receivables from related parties) adopts the aging method, the provision percentage is listed below;
Aging Provision percentage for bad debts
Within the credit period or exceed within 180 days 0%
Exceed the credit period within 180-360 days 50%
Exceed the credit period over 360 days 100%

3.8 Fixed assets and depreciation rate

Fixed assets are recorded at actual cost on acquisition, depreciation is provided on a straight-line basis, starting from

the next month after the asset is ready for its intended use. The respective estimated useful life, estimated residual

rate and annual depreciation rate are listed below;

Estimated residual
Items Estimated useful life Annual depreciation rate
rate

Office equipment 2 years 0% 50%

Electronic device 3 years 0% 33%

Provision for impairment on fixed assets:

At year end, a provision for impairment on fixed assets is recognized item by item when the recoverable amount of fixed

assets is lower than the carrying amount due to continuing decline of market prices, technological obsolescence,

damage or long-term redundancy.

3.9 Intangible assets

a) Valuation: Intangible assets are recorded at actual cost on acquisition.

b) Amortization of intangible assets: Straight-line amortization method. In case one party has the limitation of beneficial

or effective period between relevant contracts and laws, intangible assets are amortized evenly over the period which

does not exceed the stipulated period; In case both parties have stipulated the amortization, intangible assets are evenly

amortized over the shorter period; If neither party has stipulated the amortization, intangible assets are amortized

evenly over periods no more than ten years.

Notes to the financial statements page 3

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

c) A provision for impairment on the intangible assets is recognized in accordance with the difference between the

recoverable amount and the carrying amount in case that the intangible assets are replaced by other new technologies

that adversely affect its ability to generate economic benefits; the market value of the intangible assets has declined

significantly during the period and is not expected to recover during the remaining amortization period; the legal

protection period for the intangible assets has lapsed but the assets still have some value for use.

3.10 Recognition of revenue

a) Rendering of services: When the provision of services is started and completed within the same accounting year,

revenue is recognized at the time of completion of the services, on receipt of the proceeds or obtaining the evidence

to receive proceeds. When the provision of services is started and completed in different accounting years and the

outcome of a transaction can be estimated reliably, revenue is recognized using the percentage of completion

method on the balance sheet date.

b) Abalienation of right to use assets: When it is probable that economic benefits associated with the transaction will

flow into the Company, and when the transaction amount can be reliably measured.

3.11 Lease

a) Financial lease substantially transfers all risks and rewards related to the ownership of assets. Leases other than

financial leases are operating leases.

b) The rent of operating leases is expensed on a straight-line basis during the lease term.

3.12 Income tax

Taxes payable method is adopted.

3.13 Changes in accounting policies and estimates, and correction of errors in prior period

a) The Company had no changes in major accounting policies during the reporting period.

b) The Company had no changes in major accounting estimates during the reporting period.

c) The Company had no changes in correction of errors in prior period during the reporting period.

Notes to the financial statements page 4

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

4. Taxation and tax rates

Items Tax basis Tax rate

The output is calculated based on the revenue from sales of
Value added tax (VAT) goods and the provision of taxable services; After deduction of the 6%
deductible input tax, the difference is the VAT payable.
City construction and
According to the turnover tax actually paid. 7%
maintenance tax
Education surcharge According to the turnover tax actually paid. 3%
Local education
According to the turnover tax actually paid. 2%
surcharge
Enterprise income tax According to the enterprise taxable income amount. 25%

According to Announcement No. 39 of 2019 & No. 1of 2023 issued by the state administration of taxation, taxpayers of

manufacturing service industry are permitted to float 5% on current deductible input VAT to offset tax payable of year

2023.

5. The principle and methods of profit distribution

The Company shall withdraw reserve fund in accordance with Articles of Association of the Company, the extraction

proportion shall be no less than 10% of the post-tax profit. Extraction may be ceased after accumulating 50% of the

registered capital. The remaining profits shall be distributed based on the related resolution of the Board of Directors.

6. Notes to the main items of financial statements

6.1 Cash and cash equivalents

Items As of December 31, 2023 As of December 31, 2022

Cash in bank 17,675,496.67 10,869,217.79

6.2 Notes receivable

Items As of December 31, 2023 As of December 31, 2022

Bank acceptance 6,950,000.00 2,100,000.00

Notes to the financial statements page 5

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

6.3 Accounts receivable

The aging analysis of accounts receivable is as follows:

As of December 31, 2023 As of December 31, 2022

Aging Provision for Provision for

Book balance Book value Book balance Book value
bad debts bad debts

Within the

credit period or
45,331,958.88 - 45,331,958.88 65,182,764.75 - 65,182,764.75
exceed within

180 days

Exceed the

credit period
1,148,266.66 80,933.57 1,067,333.09 2,510,368.22 256,451.20 2,253,917.02
within 180-360

days

Exceed the

credit period 6,083,506.21 6,083,506.21 - 5,909,989.41 5,909,989.41 -

over 360 days

Total 52,563,731.75 6,164,439.78 46,399,291.97 73,603,122.38 6,166,440.61 67,436,681.77

Bad debt Provision:

As of December 31, 2022 Accrual（Reverse） Write off As of December 31, 2023

6,166,440.61 (2,000.83) - 6,164,439.78

Large Amount of accounts receivable are:

Debtor’s Name Amount

Tata Technologies Europe Limited 13,457,047.82

Wuhan Lotus Technology Co.,Ltd 9,999,790.22

NIO Co. Ltd 6,405,045.68

Notes to the financial statements page 6

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

6.4 Other receivables

As of December 31, 2023 As of December 31, 2022

Aging Provision Provision

Book balance Book value Book balance Book value
for bad debts for bad debts

Within 1 year 640,455.56 - 640,455.56 312,838.55 - 312,838.55

1-2 years 100,000.00 - 100,000.00 375,196.67 - 375,196.67

2-3 years 375,196.67 - 375,196.67 - -

Over 3 years 267,320.11 70,000.00 197,320.11 267,320.11 - 267,320.11

Total 1,382,972.34 70,000.00 1,312,972.34 955,355.33 - 955,355.33

Bad debt Provision:

As of December 31, 2022 Accrual（Reverse） Write off As of December 31, 2023

- 70,000.00 - 70,000.00

6.5 Advance to suppliers

Aging As of December 31, 2023 As of December 31, 2022

Within 1 year 824,348.89 3,321,290.30

6.6 Fixed assets

a) Original costs of fixed assets

Items As of December 31, 2022 Increases Decreases As of December 31, 2023

Office equipment 294,589.05 - - 294,589.05

Electronic device 2,624,588.81 326,969.48 - 2,951,558.29

Total 2,919,177.86 326,969.48 - 3,246,147.34

b) Accumulated depreciation

Items As of December 31, 2022 Increases Decreases As of December 31, 2023

Office equipment 294,589.05 - - 294,589.05

Electronic device 2,385,635.37 199,750.91 - 2,585,386.28

Total 2,680,224.42 199,750.91 - 2,879,975.33

Notes to the financial statements page 7

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

c) Net book value

Items As of December 31, 2022 Increases Decreases As of December 31, 2023

Office equipment - - - -

Electronic device 238,953.44 127,218.57 - 366,172.01

Total 238,953.44 127,218.57 - 366,172.01

6.7 Intangible assets

Software As of December 31, 2022 Increases Decreases As of December 31, 2023

Original cost 361,320.15 - - 361,320.15

Less: Accumulated -
338,452.82 17,954.82 356,407.64
amortization

Net book value 22,867.33 - - 4,912.51

6.8 Accounts payable

As of December 31, 2023 As of December 31, 2022

7,732,668.04 27,458,766.88

Large Amount of accounts payable are:

Creditor’s name Amount

TATA Technologies Limited 1,489,938.64

Shanghai Zhixing Technology Co., Ltd 840,063.77

Tata Technologies Pte. Ltd. 453,474.40

6.9 Payroll and employee benefits payable

Items As of December 31, 2023 As of December 31, 2022

Salaries, bonuses, allowances and subsidies 2,833,041.18 4,538,612.33

Social security 534,249.77 1,482,231.30

Total 3,367,290.95 6,020,843.63

Notes to the financial statements page 8

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

6.10 Taxes payable

Items As of December 31, 2023 As of December 31, 2022

Value added tax 1,207,775.66 773,581.08

Enterprise income tax 281,909.84 726,257.19

Withholding individual income tax 374,675.67 512,213.86

Others 120,141.98 110,755.93

Total 1,984,503.15 2,122,808.06

6.11 Paid-in capital

As of December 31, 2023 As of December 31, 2022

Name of investors Percentage
USD CNY USD CNY

Tata Technologies Pte. Ltd 100% 500,000.00 3,077,237.50 500,000.00 3,077,237.50

The above paid-in capital had been verified by Chinese CPAs with Report of Capital Verification.

6.12 Capital reserves

Items As of December 31, 2023 As of December 31, 2022

Debt forgiveness 156,292.83 156,292.83

The taxable income of the period has been adjusted according to the above debt forgiveness.

6.13 Surplus reserve

Items As of December 31, 2023 As of December 31, 2022

Reserve fund 1,538,618.75 1,538,618.75

The accumulated reserve fund has appropriated 50% of the paid-in capital, therefore the withdrawal is ceased.

6.14 Undistributed profit

Items Year 2023 Year 2022

Undistributed profit at the beginning of the year 43,638,659.52 28,584,113.57

Add: net profit of the year 11,023,034.26 15,054,545.95

Undistributed profit at the end of the year 54,661,693.78 43,638,659.52

Notes to the financial statements page 9

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

6.15 Revenue from operations and cost of sales

Year 2023 Year 2022

Items
Revenue Cost Revenue Cost

Rendering of services 109,418,842.43 86,096,325.58 159,217,224.24 130,653,216.96

6.16 Financial expenses

Items Year 2023 Year 2022

Loss (Gain) on foreign exchange (2,018,456.47) (324,851.13)

Bank Charges 9,854.72 7,566.91

Interest expense on discounted bank acceptance 28,353.95 103,605.26

Less: Interest income 50,429.78 58,839.12

Total (2,030,677.58) (272,518.08)

6.17 Non-operating income

Items Year 2023 Year 2022

Additional VAT credit of life service industry 150,778.78 426,795.76

Government subsidy 658,000.00 397,000.00

Refund of tax service charges 91,446.20 61,811.44

Others 64.75 0.71

Total 900,289.73 885,607.91

6.18 Income tax expenses

Items Year 2023 Year 2022

Current tax expense for the year 3,653,628.76 726,257.19

Tax filing differences for last year 118,161.08 -

Total 3,771,789.84 726,257.19

Notes to the financial statements page 10

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

7. Leases

As of December 31, 2023, irrevocable significant operating leases include:

Nonrevocable minimum operating lease payment Year 2023 Year 2022

Within 1 year 944,805.06 1,221,209.85

1-2 years 810,459.43 1,255,175.82

2-3 years and above - 703,734.35

Total 1,755,264.49 3,180,120.02

8. Contingency

No contingency needs to be disclosed.

9. Non-adjusting subsequent events

No non-adjusting subsequent events needs to be disclosed.

10. Related parties and related party transactions and ending balance

10.1 Information of the related parties with control relationship

Name of related party Registered address Type of legal entity Relationship

Tata Technologies Pte. Ltd. Singapore Corporate body Parent company

10.2 Information of the related parties without control relationship

Name Relationship

Tata Technologies Limited Controlled, jointly controlled, or significantly impacted by the same party

Tata Technologies Europe Limited Controlled, jointly controlled, or significantly impacted by the same party

Tata Technologies Inc. Controlled, jointly controlled, or significantly impacted by the same party

Tata Technologies Nordics AB Controlled, jointly controlled, or significantly impacted by the same party

Tata Technologies Ltd-Japan Branch Controlled, jointly controlled, or significantly impacted by the same party

Tata SONS Private Limited Controlled, jointly controlled, or significantly impacted by the same party

Notes to the financial statements page 11

TATA MANUFACTURING TECHNOLOGIES (SHANGHAI) CO., LTD.
NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2023
CNY

10.3 Transactions with related parties:

a) Transactions with related parties

Category Year 2023 Year 2022

Rendering of services 42,320,141.75 66,100,634.41

Receiving services 4,304,875.68 4,543,514.35

Royalty expenditure 77,608.00 -

b) Accounts receivable and payable with related parties

Category As of December 31, 2023 As of December 31, 2022

Accounts receivable 13,603,942.09 31,616,000.18

Advance to suppliers 166,032.37 427,148.87

Accounts payable 1,957,812.05 9,613,914.35

Other payables 386,569.00 398,961.00

Tata Manufacturing Technologies (Shanghai) Co., Ltd.

March 7, 2024

Notes to the financial statements page 12