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Standalone Financials
135
CORPORATE OVERVIEW (1-31)
STATUTORY REPORTS (46-122)
FINANCIALS
NOTES FORMING PART OF FINANCIAL STATEMENTS
(vi)
Compensated absences
The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to
accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of
unutilised leave at each balance sheet date on the basis of an independent actuarial valuation.
(m)
Investments
Long term investments are stated at cost less other than temporary diminution in value, if any. Current investments are stated at
lower of cost and fair value. Fair value of investments in mutual funds are determined on a portfolio basis.
(n)
Income taxes
Tax expense comprises current and deferred taxes.
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the
Income Tax Act, 1961. Current tax is net of credit for entitlement for Minimum Alternative Tax (MAT).
Deferred tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent periods.
Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual certainty that
there will be sufficient future taxable income available to realise such losses.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when asset is realised
or the liability is settled, based on tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date.
(o)
Redemption premium on Foreign Currency Convertible Notes (FCCN) / Convertible Alternative Reference Securities
(CARS) / Non-Convertible Debentures (NCD)
Premium payable on redemption of FCCN / CARS / NCD as per the terms of issue, is provided fully in the year of issue by adjusting
against the Securities Premium Account (SPA) (net of tax). Any change in the premium payable, consequent to conversion or exchange
fluctuations is adjusted to the SPA.
(p)
Borrowing costs
Fees towards structuring / arrangements and underwriting and other incidental costs incurred in connection with borrowings
are amortised over the period of the loan.
(q)
Liabilities and contingent liabilities
The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such
matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company
provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.
(r)
Business segments
The Company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles
including financing of the vehicles sold by the Company. These, in the context of Accounting Standard 17 on Segment Reporting, as
specified in the Companies (Accounting Standards) Rules, 2006, are considered to constitute one single primary segment. Further,
there is no reportable secondary segment i.e. Geographical Segment.
FINANCIAL HIGHLIGHTS (32-45)