Created by : Naveen Kumar

Roll. No. : EMBA/2K22/14

Maruti Suzuki India Limited

IndAS-1. Preparation of Financial Statements

The Financial Statements have been prepared in accordance with the Indian Accounting Standards
notified under section 133 of Companies Act, 2013 read with the Companies (Indian Accounting
Standards) Rules, 2015 and generally accepted accounting policies in India.

IndAS-315: Revenue Recognition for Contracts with Customers

 The Ind-AS has been adopted retrospectively from the transition date with insignificant effect

 Revenue is measured at the fair value of the consideration received or receivable. Amounts
disclosed as revenue are net of returns, discounts, sales incentives, goods & service tax and
value added taxes

 The Group recognises revenue when the amount of revenue and its related cost can be reliably
measured and it is probable that future economic benefits will flow to the entity and degree of
managerial involvement associated with ownership or effective control have been met for each
of the Group’s activities as described below:

Sale of Goods
Income From Service
Income from Royalty
Transfers control over such products to the customer on dispatch
from the factory and the port respectively
Engineering Services-Performance of related Service
Extended Warranty – Time Proportion Basis
Other Service – Period of Service
Accrual Basis as per the relevant Arrangements

 Dividend on Investments is recognised when right to receive payment has been established i.e.
Dividend is declared.
 Interest income is recognised when the income can be measured reliably and it is probable that
the interest will be realized
 For trade receivables or any contractual right to receive cash or another financial asset that
result from transactions that are within the scope of IndAS-115, the Group always measures the
loss allowance at an amount equal to lifetime expected credit losses.

IndAS-2 Inventories

 Inventories are valued at lower of Cost or NRV (Net Realizable Value). This value is determined
calculated on weighted average basis.
  Rebates and discounts are deducted while valuing purchased inventory

 Cost of Finished Good and WIP include raw material, direct labour, other direct costs and
appropriate apportionment of variable and fixed overheads (on the basis of normal capacity).

 Machine spares which value less than Rs.5000 are charged to revenue and above it are
capitalised.

IndAS-16- Property. Plant and Equipment

 Property, plant and equipment are recorded at cost of acquisition or construction les
accumulated depreciation less accumulated impairment, if any.
 Freehold land is measured at cost and is not depreciated
 Repair and Maintenance of recurring and revenue nature are charged from Profit and loss
statement.
 PPE derecognised on sale and profit loss is recorded in Reverse Statement
 Depreciation is calculated using Straight Line Method.
 Accounting methods for depreciation, useful life of asset and residual values are reviewed at
each accounting period and given effect prospectively

IndAS-7 Statement of Cash Flows

The Cash flow Statement have been prepared in accordance with the Indian Accounting Standards
notified under section 133 of Companies Act, 2013 read with the Companies (Indian Accounting
Standards) Rules, 2015 and generally accepted accounting policies in India.

Going Concern
The board of directors have considered the financial position of the Company as at March 31,2022 and
the projected cash flows and financial performance of the Company for at least twelve months from the
date of approval of these financial statements as well as planned cost and cash improvement actions,
and believe that the plan for sustained profitability remains on course. The board of directors have
taken actions to ensure that appropriate long-term cash resources are in place at the date of signing the
accounts to fund the Company’s operations.

Use of estimates and judgements

The preparation of financial statements in conformity with Ind AS requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amount of assets, liabilities, income, expenses and disclosures of contingent assets and
liabilities at the date of these financial statements and the reported amount of revenues and expenses
for the years presented. Actual results may differ from the estimates.

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