137
(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. Other deferred tax assets are recognised if there is reasonable certainity that there
will be sufficient future taxable income to realize such assets.
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 substantively enacted by the balance sheet date.
(o)
Redemption premium on Foreign Currency Convertible Notes (FCCN) / Non Convertible Debentures (NCD)
Premium payable on redemption of FCCN / 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.
Discount on redemption of FCCN, if any, is recognised on redemption.
(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.
NOTES FORMING PART OF FINANCIAL STATEMENTS
Independent Auditors’Report
Balance Sheet
(134-169)
Statement of Profit and Loss
Cash Flow Statement
Notes to Accounts
