Accounting Policies of Competent Automobiles Co Ltd. Company

Mar 31, 2025

Note No.1- SIGNIFICANT ACCOUNTING POLICIES

A. General Information

Competent Automobiles Company Limited (“The Company”) is a Public Limited Company incorporated and
domiciled in India under the erstwhile Companies Act, 1956 and now being governed under the Companies Act,
2013 (“the Act”) having its registered office at Competent House, F-14, Connaught Place, New Delhi -110001.
Its equity shares are listed at Bombay Stock Exchange (BSE). The Company is Authorized Dealer of Maruti Suzuki
India Limited for Delhi, Noida (UP), Haryana and Himachal Pradesh regions.

The financial statements for the year ended 31^st March, 2025 were approved by the Board of Directors and
authorized for issue on 23^rd May, 2025.

B. (i) Statement of Compliance

The Financial Statements have been prepared on going concern basis in accordance with Indian Accounting
Standard (Ind AS) notified under the Section 133 read with the Companies (Indian Accounting Standards)
Rules, 2015 as amended from time to time.

(ii) Basis of preparation and presentation

The financial statements have been prepared and presented under historical cost convention on accrual
basis in accordance with Ind AS except for certain financial instruments which are measured at fair market
value at the end of each reporting period as explained in the accounting policies.

All assets and liabilities have been classified as current or non-current according to the Company’s operating
cycle and other criteria set out in the Act and Ind AS-1 “Presentation of Financial Statements.”

C. Summary of Material Accounting Policies

The Financial Statements have been prepared as per Accounting Policies and measurement bases, as summarized
below:

Overall Considerations

The Financial Statements have been prepared as per Material Accounting Policies and measurement bases that
are in effect at 31^st March, 2025 as summarized below:

Revenue recognition

Revenue from contracts with customers is recognized on transfer of control of promised goods or services to a
customer at an amount that reflects the consideration. to which the Company is expected to be entitled to in
exchange for those goods or services. Revenue towards satisfaction of a performance obligation is measured
at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The
transaction price of goods sold and services rendered is net of variable consideration on account of various
discounts and schemes offered by the Company as part of the contract. This variable consideration is estimated
based on the expected value of outflow. Revenue (net of variable consideration) is recognized only to the extent
that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its
recognition is resolved.

(i) Sale of Goods

Revenue from Sale of product is recognized when the control on the goods have been transferred to the
customer. The performance obligation in case of sale of product is satisfied at a point of time i.e. when
the material is dispatched to the customer or on the delivery to the customer, as may be specified in the
contracts.

(ii) Rendering of services

Revenue from service is recognized over time by measuring progress towards satisfaction of performance
obligation for the services rendered. The company uses output method for measurement of revenue from
rendering of services based on time elapsed and / or parts delivered.

(iii) Interest income

Interest income is reported on accrual basis as per effective interest rate method.

Interest incomes on bank deposits are recognized on accrual basis.

Property, Plant and Equipment
Recognition

Property, Plant and Equipment are stated at their cost of acquisition. The cost comprises purchase price,
borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its
working condition for the intended use including decommissioning and restoration costs associated with
provisions for asset retirement. Any trade discount and rebates are deducted in arriving at the purchase
price.

Subsequent measurement (Depreciation)

Depreciation on Property, Plant and Equipment is charged on written down value (WDV) method on the
basis of rates arrived at with reference to its useful life as prescribed under Part-C of Schedule II of the Act.
The following useful lives are applied:

(i) The assets'' residual values, estimated useful lives and depreciation method are reviewed at the end of each
reporting period. The changes, if any, in the estimate is accounted for on a prospective basis.

(ii) The vehicle purchased for the purpose of the test drive are treated as an asset of the Company and
depreciation is charged accordingly.

(iii) Lease hold improvements are measured at useful life of lease period.

Derecognition

Property, Plant and Equipment or any significant part initially recognized is de- recognized upon disposal or when
no future economic benefits are expected from its use. Any gain or loss arising on de-recognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included
in the Statement of Profit and Loss account when the asset is derecognized.

Impairment of Non- Financial Assets

Carrying amount of assets is reviewed at each reporting date where there is any indication of impairment based
on internal/ external indicators. An impairment is recognized in the Statement of Profit and Loss is measured by
the amount by which carrying amount exceeds the estimated recoverable amount of assets. An impairment loss
is reversed in the Statement of Profit and Loss, if there has been a change in the estimates used to determine the
recoverable amount and such loss either no longer exists or has decreased or indication on which impairment was
recognized. Recoverable amount is the higher of an asset''s fair value less costs of disposal (FVLCD) and its value
in use (VIU).

When estimating VIU, the Company uses cash flow projections based on reasonable and supportable assumptions.
Cash flows are discounted using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset.

Inventories

Inventories are valued at lower of cost or net realizable value. Cost is determined as follows:

(i) In case of cars, at specific cost on identification or its individual costs.

(ii) In case of spares and others, the same are valued at FIFO basis.

Costs includes all non-refundable duties and taxes and all other charges incurred in bringing the inventory to their
present location and condition. Net realizable value is the estimated selling price less estimated cost necessary to
make the sale.

Financial Instruments

Initial recognition and measurement

Financial Assets are recognized when the Company becomes a party to the contractual provisions of the Financial
Instrument and are measured initially at fair value adjusted for transaction costs, except for trade receivables that
do not have a significant financing component which are measured at transaction price.

Subsequent Measurement

(a) Financial assets at Amortized Cost - A ‘debt instrument’ is measured at the amortized cost, if both the following
conditions are satisfied:

• The asset is held within a Business Model whose objective is to hold assets for collecting contractual cash
flows; and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such Financial Assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method.

All other financial assets are measured at Fair Value through Other Comprehensive Income (FVOCI) or Fair value
through Profit and Loss (FVTPL) based on Company’s Business Model.

(b) Investment in Equity Instruments - All equity investments in scope of Ind-AS 109 are measured at fair value.
Equity instruments which are held for trading are classified as at Fair Value through Profit and Loss (FVTPL).
For all other equity instruments, the Company decides to classify the same either as at Fair Value through
Other Comprehensive Income (FVOCI) or Fair Value through Profit and Loss (FVTPL) on an instrument-to-
instrument basis.

De-recognition of Financial Assets

A Financial Asset is primarily de-recognized when the rights to receive cash flows from the asset have expired or
the Company has transferred its rights to receive cash flows from the asset.

Financial liabilities

1. Initial recognition and measurement

All Financial liabilities are recognized initially at fair value and transition cost that is attributable to the
acquisition of financial liabilities is also adjusted. Financial liabilities are classified at amortized cost.

2. Subsequent measurement

Subsequently to initial recognition, these liabilities are measured at amortized cost using the effective interest
rate method.

3. De-recognition of Financial Liability

A Financial Liability is de-recognized when the obligation under the liability is discharged or cancelled or
expired. Consequently, the unsettled credit balances and invoked bank guarantee is written back on closure

of the concerned project or earlier based on the previous experience of Management and actual facts of each
case and recognized in Other Operating Revenue.

Further when an existing Financial Liability is replaced by another from by the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such exchange or modification
is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognized in the Statement of Profit and Loss.

IMPAIRMENT OF FINANCIAL ASSETS

In accordance with Ind-As 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition
of impairment loss for Financial Assets.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract
and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company consider the
following: -

• All contractual terms of the Financial Assets (including prepayment and extension) over the expected life of the assets.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
Trade Receivables

The Company has adopted ‘simplified approach’ using the Provision Matrix Method for recognition of expected loss on
trade receivables. The provision matrix is based on default rates observed over the expected life of the trade receivables
and is adjusted for forward-looking estimates. These average default rates are applied on total credit risk exposure on
trade receivables and outstanding for more than one year at the reporting date to determine the life time Expected Credit
Losses. Further, where there is material increase in credit risk since initial recognition, impairment loss is assessed and
provided.

Other Financial Assets

For recognition of impairment loss on Other Financial Assets and Risk Exposure, the Company determines whether
there has been a material increase in the credit risk since initial recognition and if credit risk has increased significantly,
impairment loss is provided.

Cash and cash equivalent

Cash and cash equivalent comprise cash in hand, balances in Bank Account, remittance in transit, cheques in hand and
Demand Deposits, together with other short-term, highly liquid investments (original maturity less than 3 months) that
are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.

Equity, Reserves and Dividend Payments

Share capital represents the nominal value of shares that have been issued. Any transaction costs associated with the
issuing of shares are deducted from retained earnings, net of any related income tax benefits.

Other components of equity include Other Comprehensive Increase or decrease in fair value of Investments including
tax effects.

Retained earnings include all current and prior period retained profits. All transactions with owners of the parent are
recorded separately within equity. Proposed dividend distribution to shareholders is recognized as a liability in the period
in which the dividend is approved by the shareholders. Any interim dividend paid is recognized on approval by the Board
of Directors. Proposed dividend as and when it is paid is recognized directly in equity.

Leases

Company as a lessee

At inception of a contract, the company assess whether the contract is, or contains, a lease.

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.

Recognition:

“Right of Use (ROU) Asset”

At the commencement date, the company recognize a right-of-use asset and a lease liability, except

a. For lease with a term of twelve months or less (Short term leases) and,

b. Leases for which the underlying asset is of low value.

For short term leases and assets of low value the Company recognizes the lease payments as an operating expense on a
straight-line basis over the term of lease.

“Lease Liability”

At the commencement date, the company measures the lease liability at the present value of the lease payments that are
not paid at that date.

The lease payments are discounted using the effective interest rate.

Subsequent measurement:

1. “Right of Use (ROU) Asset”:

After the commencement date, the company measure the right-of-use asset at cost less any accumulated depreciation
and is subject to impairment losses.

2. “Lease Liability”

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured, in case of
any reassessment or modification thereof.

The residual values, useful lives and methods of depreciation of right of use are reviewed at the end of each financial
year and adjusted prospectively, in appropriate case.

De-Recognition

A right of use asset initially recognized is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on de- recognition of the right of use asset (calculated as
the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement
of Profit and Loss when the right of use asset is derecognized.

Company as a Lessor
Operating lease

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases. Assets leased out under operating leases are capitalized.

Rental income is recognized on straight-line basis over the lease term except where scheduled increase in rent
compensates the Company with expected inflationary costs.

Taxation

Income tax comprises current tax and deferred tax. Income tax is recognized in the Statement of Profit and Loss
except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which

case the tax is recognized in the same statement as the related item appears.

Calculation of Current Tax is based on tax rates and tax laws that have been enacted or substantively enacted by the
end of the reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
balance sheet, and the amounts attributed to such assets and liabilities for tax purposes. Deferred tax is calculated
using the tax rates expected to apply in the periods in which the assets will be realized or the liabilities settled.

The Current Tax and Deferred Tax so calculated are adjusted for the uncertainty of tax treatment by the tax authorities
at each reporting date.

Deferred Tax Liabilities are generally recognized in full for all taxable temporary differences.

Deferred Tax Assets are recognized to the extent that it is probable that the underlying tax loss, unused tax credits or
deductible temporary difference will be utilized against future ''taxable income.

This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable
income and expenses and specific limits on the use of any unused tax loss or credit.

Foreign currencies

Functional and Presentation Currency

The Standalone Financial Statements are presented in Indian Rupee (‘INR’), which is company’s functional Currency.
Foreign Currency Transactions and Balances

Foreign Currency transactions are recorded in the reporting Currency, by applying to the Foreign Currency amount,
the exchange rate between the Reporting Currency and the Foreign Currency at the date of the transaction.

Foreign Currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non¬
monetary items which are measured in terms of historical cost denominated in a Foreign Currency are reported using
the exchange rate at the date of the transaction.

Exchange differences arising on the settlement of monetary items, or on reporting such monetary items of the
Company at rates different from those at which they were initially recorded during the year, or reported in previous
Financial Statements, are recognized as Income/ Expenses in the year in which they arise.

Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders of
the Company by the weighted average number of equity shares outstanding during the year.

(ii) Diluted earnings per share

The diluted earnings per share is calculated on the same basis as basic earnings per share, after adjustment of the
effects of potential dilutive equity shares.

Employee benefits
Defined Contribution Plan

Company’s Contribution paid/payable during the year to Provident Fund / ESI is recognized in the Statement of
Profit and Loss for the year in which the related services are rendered.

Defined Benefit Plan

Company’s liability towards Gratuity are determined by independent actuary, at the year-end using the Projected
Unit Credit Method. Actuarial gains or losses are recognized in the Other Comprehensive Income. Liability for
Gratuity as per actuarial valuation is paid to a fund administered under the Group Gratuity Scheme of Life Insurance
Corporation of India (LIC)

Short Term Employee Benefits

Short term employee benefits comprise of employee costs such as Salaries, Bonus, and ex-gratia are accrued in the
year in which the associated services are rendered by employees of the Company.

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Mar 31, 2024

Note No.1- SIGNIFICANT ACCOUNTING POLICIES

A. General Information

Competent Automobiles Company Limited (“The Company”) is a public limited Company incorporated and domiciled in India and it is listed on the Bombay Stock Exchange (BSE). The address of its registered office is F-14, Competent House, Connaught Place New Delhi - 110001. The Company is Authorized Dealer of Maruti Suzuki India Limited for Delhi, Noida (UP), Haryana and Himachal Pradesh areas.

B. (i) Statement of Compliance

The Financial Statements have been prepared on going concern basis in accordance with Indian Accounting Standard (Ind AS) notified under the Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

(ii) Basis of preparation and presentation

The financial statements have been prepared on the historical cost convention on accrual basis except for certain financial instruments which are measured at fair market value at the end of each reporting period as explained in the accounting policies.

All assets and liabilities have been classified as current or non-current according to the Company’s operating cycle and other criteria set out in the Act, and IndAS-1 “Presentation of Financial Statements”

C. Summary of Material Accounting Policies

The Financial Statements have been prepared using the Accounting Policies and measurement bases, as summarized below:

Overall Considerations

The Financial Statements have been prepared using the Material Accounting Policies and measurement bases that are in effect at 31st March 2024, as summarized below:

Revenue recognition

Revenue from contracts with customers is recognized on transfer of control of promised goods or services to a customer at an amount that reflects the consideration. to which the Company is expected to be entitled to in exchange for those goods or services. Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract. This variable consideration is estimated based on the expected value of outflow. Revenue (net of variable consideration) is recognized only to the extent that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved

(i) Sale of Goods

Revenue from Sale of product is recognized when the control on the goods have been transferred to the customer. The performance obligation in case of sale of product is satisfied at a point of time i.e. when the material is dispatched to the customer or on the delivery to the customer, as may be specified in the contracts.

(ii) Rendering of services

Revenue from service is recognized over time by measuring progress towards satisfaction of performance obligation for the services rendered. The company uses output method for measurement of revenue from rendering of services based on time elapsed and / or parts delivered.

(iii) Interest income

Interest income is reported on accrual basis using the effective interest rate method.

Interest incomes on bank deposits are recognized on timely accrual basis.

Property, plant and equipment & Intangible Assets Recognition

Property, Plant and Equipment are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use including decommissioning and restoration costs associated with provisions for asset retirement. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent measurement (Depreciation)

Depreciation on Property, Plant and Equipment is charged on Written down Method on the basis of rates arrived at with reference to the useful life of the assets evaluated by the Committee consisting of technical experts and approved by the Management or rates arrived at based on useful life prescribed under Part C of Schedule II of the Companies Act, 2013.The following useful lives are applied:

Asset Category	Estimated Useful Life (in years)
Building	60
Plant & Machinery	15
Electrical Installations	10
Office Equipment	5
Computers and data processing Units
-End user devices, such as desktops, laptops, etc.	3
Furniture & Fixtures	10
Vehicles	8

(i) The assets'' residual values, estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

(ii) The vehicle purchased for the purpose of the test drive are treated as an asset of the Company and depreciation is charged accordingly.

Derecognition

An item of Property, Plant and Equipment or any significant part initially recognized is de- recognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss account when the asset is derecognized.

Impairment of Non- Financial Assets

Carrying amount of assets is reviewed at each reporting date where there is any indication of impairment based on internal/ external indicators. An impairment loss is recognized in the Statement of Profit and Loss where carrying amount exceeds recoverable amount of assets. Impairment loss is reversed, if, there is change in recoverable amount and such loss either no longer exists or has decreased or indication on which impairment was recognized no longer exists. Recoverable amount is the higher of an asset''s fair value less costs of disposal (FVLCD) and its value in use (VIU).

When estimating VIU, the Company uses cash flow projections based on reasonable and supportable assumptions. Cash flows are discounted using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Inventories

Inventories are valued at lower of cost and net realizable value. Cost is determined as follows:

(i) In case of cars, at specific cost on identification basis of their individual costs.

(ii) In case of spares and others, the same are valued at FIFO basis

Costs includes all nonrefundable duties and taxes and all other charges incurred in bringing the inventory to their present location and condition. Net realizable value is the estimated selling price less estimated cost necessary to make the sale.

Financial Instruments

Initial recognition and measurement

Financial Assets are recognized when the Company becomes a party to the contractual provisions of the Financial Instrument and are measured initially at fair value adjusted for transaction costs, except for trade receivables that do not have a significant financing component which are measured at transaction price.

Subsequent Measurement

(a) Financial assets at Amortized Cost - A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met.

• The asset is held within a Business Model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such Financial Assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.

All other financial assets are measured at Fair Value through Other Comprehensive Income (FVOCI) or Fair value through Profit and Loss (FVTPL) based on Company’s Business Model.

(b) Investment in Equity Investments - All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at Fair Value through Profit and Loss(FVTPL). For all other equity instruments, the Company decides to classify the same either as at Fair Value through Other Comprehensive Income (FVOCI) or Fair Value through Profit and Loss (FVTPL) on an instrument-to-instrument basis.

De-recognition of Financial Assets

A Financial Asset is primarily de-recognized when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.

Financial liabilities

1. Initial recognition and measurement

All Financial liabilities are recognized initially at fair value and transition cost that is attributable to the acquisition of financial liabilities is also adjusted. Financial liabilities are classified at amortized cost.

2. Subsequent measurement

Subsequently to initial recognition, these liabilities are measured at amortized cost using the effective interest rate method.

3. Derecognition of Financial Liability

A Financial Liability is de-recognized when the obligation under the liability is discharged or cancelled or expired. Consequently, write back of unsettled credit balances and invoked bank guarantee is done on

closure of the concerned project or earlier based on the previous experience of Management and actual facts of each case and recognized in Other Operating Revenue.

Further when an existing Financial Liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

IMPAIRMENT OF FINANCIAL ASSETS

In accordance with Ind-As 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss for Financial Assets.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company consider the following: -

• All contractual terms of the Financial Assets (including prepayment and extension) over the expected life of the assets.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. Trade Receivables

As a practical expedient the Company has adopted ‘simplified approach’ using the Provision Matrix Method for recognition of expected loss on trade receivables. The provision matrix is based on default rates observed over the expected life of the trade receivables and is adjusted for forward-looking estimates. These average default rates are applied on total credit risk exposure on trade receivables and outstanding for more than one year at the reporting date to determine life time Expected Credit Losses. Further, in cases where there is material increase in credit risk since initial recognition, impairment loss is assessed & provided.

Other Financial Assets

For recognition of impairment loss on Other Financial Assets and Risk Exposure, the Company determines whether there has been a material increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.

Cash and cash equivalents

Cash and Cash Equivalents comprise Cash in hand, Balances in Bank Account, Remittance in Transit, Cheques in hand and Demand Deposits, together with other short-term, highly liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Equity, Reserves and Dividend Payments

Share capital represents the nominal value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from retained earnings, net of any related income tax benefits.

Other components of equity include Other Comprehensive Increase or decrease in fair of Investments including tax effects.

Retained earnings include all current and prior period retained profits. All transactions with owners of the parent are recorded separately within equity. Proposed dividend distribution to shareholders is recognized as a liability in the period in which the dividend is approved by the shareholders. Any interim dividend paid is recognized on approval by Board of Directors. Proposed dividend as and when it is paid is recognized directly in equity.

Leases

Company as a lessee

At inception of a contract, the company assess whether the contract is, or contains, a lease.

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Recognition:

“Right of Use (ROU) Asset”

At the commencement date, the company recognize a right-of-use asset and a lease liability, except

a. For lease with a term of twelve months or less (Short term leases) and,

b. Leases for which the underlying asset is of low value.

For short term leases and assets of low value the company recognizes the lease payments as an operating expense on a straight-line basis over the term of lease.

“Lease Liability”

At the commencement date, the company measures the lease liability at the present value of the lease payments that are not paid at that date.

The lease payments are discounted using the effective interest rate.

Subsequent measurement:

1. “Right of Use (ROU) Asset”:

After the commencement date, the company measure the right-of-use asset at cost less any accumulated depreciation and is subject to impairment losses.

2. “Lease Liability”

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is any reassessment or modification.

The residual values, useful lives and methods of depreciation of right of use are reviewed at each financial year end and adjusted prospectively, if appropriate.

De-Recognition

A right of use asset initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de- recognition of the right of use asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss account when the right of use asset is derecognized.

Company as a Lessor Operating lease

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Assets leased out under operating leases are capitalized.

Rental income is recognized on straight-line basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs.

Taxation

Income tax comprises current tax and deferred tax. Income tax is recognized in the Statement of Profit and Loss except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which

case the tax is recognized in the same statement as the related item appears.

Calculation of Current Tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the balance sheet, and the amounts attributed to such assets and liabilities for tax purposes. Deferred tax is calculated using the tax rates expected to apply in the periods in which the assets will be realized or the liabilities settled.

The Current Tax and Deferred Tax so calculated are adjusted for the uncertainty of tax treatment by the tax authorities at each reporting date.

Deferred Tax Liabilities are generally recognized in full for all taxable temporary differences.

Deferred Tax Assets are recognized to the extent that it is probable that the underlying tax loss, unused tax credits or deductible temporary difference will be utilized against future ''taxable income.

This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit.

Foreign currencies

Functional and Presentation Currency

The Standalone Financial Statements are presented in Indian Rupee (‘INR’), which is company’s functional Currency.

Foreign Currency Transactions and Balances

Foreign Currency transactions are recorded in the reporting Currency, by applying to the Foreign Currency amount, the exchange rate between the Reporting Currency and the Foreign Currency at the date of the transaction.

Foreign Currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Nonmonetary items which are measured in terms of historical cost denominated in a Foreign Currency are reported using the exchange rate at the date of the transaction.

Exchange differences arising on the settlement of monetary items, or on reporting such monetary items of the Company at rates different from those at which they were initially recorded during the year, or reported in previous Financial Statements, are recognized as Income/ Expenses in the year in which they arise.

Earnings per Share

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders of the Company with the weighted average number of equity shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

Employee benefits Defined Contribution Plan

Company’s Contribution paid/payable during the year to Provident Fund / ESI is recognized in the Statement of Profit and Loss for the year in which the related services are rendered.

Defined Benefit Plan

Company’s liability towards Gratuity, Post-Retirement Benefits and TA on Superannuation are determined by independent actuary, at the year-end using the Projected Unit Credit Method. Actuarial gains or losses are recognized in the Other Comprehensive Income. Liability for Gratuity as per actuarial valuation is paid to a fund administered under the Group Gratuity Scheme of Life Insurance Corporation of India (LIC)

Short Term Employee Benefits

Short term benefits comprise of employee costs such as Salaries, Bonus, and ex gratia are accrued in the year in which the associated services are rendered by employees of the Company.

Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Provisions are discounted to their present values, where the time value of money is material. Where discounting is used, the increase in the provision due to the passage of time is recognized within finance costs.

Other Provisions:

Other Provisions include Provision for CSR Activities and Provision for Other Contingency.

Contingent liabilities and claims against the company not acknowledged as debt, and contingent liabilities related to legal proceedings or regulatory matters, including certain guarantees, are not recognized in the financial statements. However, these are disclosed unless the probability of settlement is remote.

Contingent Liabilities are disclosed on basis of judgment of management after a careful evaluation of facts and legal aspects of matter involve.

Contingent Assets are disclosed when probable and recognized when realization of income is virtually certain.

Segment Reporting

The Company publish this financial statement in accordance with IndAS 108, Operating segments, the company has disclosed the segment information in the financial statement.

Rounding of amounts

All amounts disclosed in the financial statements and the Companying notes have been rounded off to the nearest lakhs and two decimals thereof, as per the requirement of Schedule III of the Companies Act 2013, unless otherwise stated as amended by 24th March 2021.

SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY

Standalone Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) which require management to make estimates and assumptions that affect the reported balances of assets, liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of income & expenses during the periods. Although these estimates and assumptions used in accompanying Financial Statements are based upon management’s evaluation of relevant facts and circumstances as of date of Financial Statements which in management’s opinion are prudent and reasonable, actual results may differ from estimates and assumptions used in preparing accompanying Financial Statements. Any revision to accounting estimates is recognized prospectively from the period in which results are known/ materialize in accordance with applicable Indian Accounting Standards.

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below.

Significant Management Judgements

The following are Significant Management Judgements in applying the Accounting Policies of the Company that have the most significant effect on the Financial Statements.

Recognition of Deferred Tax Assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company’s future taxable income against which the deferred tax assets can be utilized.

Evaluation of indicators for Impairment of Assets

Significant judgements are involved in evaluation of applicability of indicators of impairment of assets which requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets. These indicators may include significant financial difficulty of the issuer or debtor, default or delinquency in payments, significant adverse changes in the technological, market, economic, or legal environment, among others.

Property, Plant and Equipment

Management assesses the remaining useful lives and residual value of property, plant and equipment and believes that the assigned useful lives and residual value are reasonable

Estimation Uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below.

Defined Benefit Obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may impact the DBO amount and the annual defined benefit expenses.

Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

Standards Issued but Not Effective

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the Year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

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Mar 31, 2023

Note No.1- SIGNIFICANT ACCOUNTING POLICIES

A. General Information

Competent Automobiles Company Limited (“The Company”) is a public limited Company incorporated and domiciled in India and it is listed on the Bombay Stock Exchange (BSE). The address of its registered office is F-14, Competent House, Connaught Place New Delhi - 110001. The Company is Authorized Dealer of Maruti Suzuki India Limited for Delhi, Haryana and Himachal Pradesh areas.

B. (i) Statement of Compliance

The Financial Statements have been prepared on going concern basis in accordance with Indian Accounting Standard (Ind AS) notified under the Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

(ii) Basis of preparation and presentation

The financial statements have been prepared on the historical cost convention on accrual basis except for certain financial instruments which are measured at fair market value at the end of each reporting period as explained in the accounting policies.

All assets and liabilities have been classified as current or non-current according to the Company’s operating cycle and other criteria set out in the Act, and IndAS-1 “Presentation of Financial Statements”

C. Significant Accounting Policies Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from operations includes sales of goods/vehicles/Spares parts/Accessories and services and amounts disclosed as revenue are net of trade allowances. The Company recognizes 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 specific criteria in relation to significant risk and reward and degree of managerial involvement associated with ownership or effective control have been met for each of the Company''s activities as described below. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transactions and the specifics of each arrangement and based on the general trade practice as prevailing in the market.

(i) Sale of Goods

Revenue from Sale of product is recognized when the control on the goods have been transferred to the customer. The performance obligation in case of sale of product is satisfied at a point of time i.e. when the material is dispatched to the customer or on the delivery to the customer, as may be specified in the contracts.

(ii) Rendering of services

Revenue from service is recognized over time by measuring progress towards satisfaction of performance obligation for the services rendered. The company uses output method for measurement of revenue from rendering of services based on time elapsed and / or parts delivered.

(iii) Dividend and Interest income

Dividend income from investments is recognized when the shareholders'' right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably). Interest income is reported on accrual basis using the effective interest rate method.

Interest incomes on bank deposits are recognized on timely accrual basis.

Property, plant and equipment & Intangible Assets

a. Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation less accumulated impairment, if any. Freehold land is measured at cost and is not depreciated. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

b. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not put to use before such date are disclosed under ‘Capital work-in-progress’.

c. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

d. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. The other repairs and maintenance of revenue nature are charged to profit or loss during the reporting period in which they are incurred.

Subsequent measurement (Depreciation, review of estimate useful life and residual value)

(i) Depreciation on property, Plant and Equipment is provided based on useful life of the assets as prescribed in the Schedule -II to the Companies Act 2013, and charged on the basis of written down Value Method.

Asset Category	Estimated Useful Life (in years)
Building	60
Plant & Machinery	15
Electrical Installations	10
Office Equipment	5
Computers and data processing Units
- End user devices, such as desktops, laptops, etc.	3
Furniture & Fixtures	10
Vehicles	8

(ii) The assets'' residual values, estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

(iii) The vehicle purchased for the purpose of the test drive are treated as an asset of the Company and depreciation is charged accordingly.

Derecognition

An item of Property, Plant & Equipment or any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain/ loss arising on derecognition of asset (calculated as the difference between net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit & Loss for the year ended.

Impairment of Non- Financial Assets

(i) At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

(ii) An impairment loss is recognized in the Statement of Profit and Loss to the extent, asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value

using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not.

Borrowing costs

(i) Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets is substantially ready for their intended use or sale.

(ii) Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets are deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

Inventories

Cost of the Inventories are valued on the basis given below:

(i) Cost of finishes goods are measured at cost or market value whichever is lower.

(ii) Cost of Spares Parts and Accessories, Oils & Lubricants are measured at cost on FIFO basis.

(iii) Vehicles and Spares parts has been taken into the stock in hand of the Company as and when they are dispatched from Maruti Suzuki India Limited (“MSIL’).

Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Initial Recognition

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial instruments (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Subsequent Measurement

1. Financial Assets at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

2. Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

3. Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

4. Derecognition of Financial Assets

The financial assets are primarily derecognized when the right to receive cashflows from the asset have expired or the company has transferred it’s right to receive cashflow from the asset.

Financial liabilities

1. Initial recognition and measurement

All Financial liabilities are recognized initially at fair value and transition cost that is attributable to the acquisition of financial liabilities is also adjusted. Financial liabilities are classified at amortized cost.

2. Subsequent measurement

Subsequently to initial recognition, these liabilities are measured at amortized cost using the effective interest rate method.

3. Derecognition of Financial Assets

When an existing financial liability is replaced by another from the same lender on the subsequently different terms, or the terms of an existing liability are subsequently modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of the new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit & loss for the year ended

4. Offsetting of Financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently enforceable legal right to offset the recognized amount and there is an intention to settle on a net basis. To realize the asset and settle the liabilities simultaneously.

IMPAIRMENT OF FINANCIAL ASSETS

In accordance with Ind-As 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss for Financial Assets.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating the cash flows, the Company consider the following: -

• All contractual terms of the Financial Assets (including prepayment and extension) over the expected life of the assets.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. Trade Receivables

As a practical expedient the Company has adopted ‘simplified approach’ using the Provision Matrix Method for recognition of expected loss on trade receivables. The provision matrix is based on three years rolling average default rates observed over the expected life of the trade receivables and is adjusted for forward-looking estimates. These average default rates are applied on total credit risk exposure on trade receivables and outstanding for more than one year at the reporting date to determine life time Expected Credit Losses.

Contract assets

The allowance for expected credit losses for contract assets are calculated at individual level when there is an indication of impairment. For contract assets without any indication of impairment the expected credit losses are based on the historical credit loss experience combined with forward-looking information in macro economic factors effecting the credit risk.

Other Financial Assets

For recognition of impairment loss on Other Financial Assets and Risk Exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly,

impairment loss is provided.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, cheques and drafts in hand, balances with bank and deposits held at call with financial institutions, short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown as a part of Cash and Cash Equivalents in the cash flow statement.

Equity, Reserves and Dividend Payments

Share capital represents the nominal value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from retained earnings, net of any related income tax benefits.

Other components of equity include Other Comprehensive Increase or decrease in fair of Investments including tax effects.

Retained earnings include all current and prior period retained profits. All transactions with owners of the parent are recorded separately within equity. Proposed dividend distribution to shareholders is recognized as a liability in the period in which the dividend is approved by the shareholders. Any interim dividend paid is recognized on approval by Board of Directors. Proposed dividend as and when it is paid is recognized directly in equity.

Leases

Company as a lessee Recognition

At the commencement date of the lease, Right Of Use of Asset (ROU asset) is recognized at cost including any indirect costs to acquire the asset and dismantling costs (if any), reduced by lease incentives with a corresponding lease liability equal to the present value of unpaid lease payments except in the following cases:

i. Short-term leases; or

ii. Leases for which the underlying asset is of low value

In case of lease to be short term or low value lease payments associated with those leases are charged as an expense on either a straight-line basis over the lease term or another systematic basis.

Lease Liability

At the Commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date.

The lease payments are discounted using the incremental borrowing rate.

The interest element of lease payments is charged to Statement of Profit and Loss, as Finance Costs over the period of the lease.

Subsequent measurement ROU Asset

The right of use is depreciated over the useful life of the underlying asset or the validity of the lease term whichever is shorter and is subject to impairment loss.

The residual values, useful lives and methods of depreciation of right of use are reviewed at each financial year end and adjusted prospectively, if appropriate.

Lease Liabilities

The lease liability is measured at the present value of the lease payments that are not paid at the commencement date

of the lease. The lease payments are discounted using interest rate implicit in the lease, if that rate can be readily determined otherwise incremental borrowing rate is used to discounts the lease payments

Re-measurement of lease liability

The lease liability is re-measured (with corresponding adjustment to the right of use asset) when:

1. The lease term is revised - the lessee must reassess whether it is reasonably certain to exercise an extension option, or not to exercise a termination option, if there is a significant event or change in circumstances that:

• is within the lessee’s control; and

• affects whether exercise (or non-exercise) is reasonably certain.

2. Future lease payment based on an index or rate are revised.

3. The lease is modified

4. There is a change in the amounts expected to be paid under residual value guarantees.

A lessee shall remeasure the lease liability by discounting the revised lease payments, if either:

(a) there is a change in the amounts expected to be payable under a residual value guarantee. A lessee shall determine the revised lease payments to reflect the change in amounts expected to be payable under the residual value guarantee.

(b) there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments, including for example a change to reflect changes in market rental rates following a market rent review. The lessee shall remeasure the lease liability to reflect those revised lease payments only when there is a change in the cash flows (i.e., when the adjustment to the lease payments takes effect). A lessee shall determine the revised lease payments for the remainder of the lease term based on the revised contractual payments.

A lessee shall use an unchanged discount rate, unless the change in lease payments results from a change in floating interest rates. In that case, the lessee shall use a revised discount rate that reflects changes in the interest rate.

Lease modification

A lessee shall account for a lease modification as a separate lease if both:

(a) the modification increases the scope of the lease by adding the right to use one or more underlying assets; and

(b) the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.

For a lease modification that is not accounted for as a separate lease, at the effective date of the lease modification a lessee shall:

(a) allocate the consideration in the modified contract

(b) determine the lease term of the modified lease

(c) remeasure the lease liability by discounting the revised lease payments using a revised discount rate. The revised discount rate is determined as the interest rate implicit in the lease for the remainder of the lease term, if that rate can be readily determined, or the lessee’s incremental borrowing rate at the effective date of the modification, if the interest rate implicit in the lease cannot be readily determined.

For a lease modification that is not accounted for as a separate lease, the lessee shall account for the remeasurement of the lease liability by:

(a) decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease. The lessee shall recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

(b) making a corresponding adjustment to the right-of-use asset for all other lease modifications.

(c) As a practical expedient, a lessee may elect not to assess whether a rent concession that meets the conditions in Para 46B is a lease concession. A lessee that makes this election shall account for any change in lease payments resulting from the rent concession the same way it would account for the change applying this Standard if the change were not a lease modification

(d) rent concession occurring as a direct consequence of Covid 19 pandemic and only if all of the following conditions are met:

i) the change in lease payments results in revised consideration for the lease that is substantially the same as or less than, the consideration for the lease immediately preceding the change;

ii) any reduction in lease payments affects only payments originally due on or before the 30th June, 2022 (a concession would meet this condition if it results in reduced lease payments on or before the 30th June 2022, and increased lease payments that extend beyond the 30th June 2022);

iii) there is no substantive change to other terms and conditions of the lease.

De-Recognition

A right of use asset initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the right of use asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss account when the right of use asset is derecognized.

Company as a Lessor

Finance Lease

The Company recognize assets held under a finance lease as a receivable at an amount equal to the net investment in the lease. The Company further recognizes finance income over the lease term, based on straight-line basis reflecting a constant periodic rate of return on the net investment in the lease.

Operating lease

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Assets leased out under operating leases are capitalized. Rental income is recognized on straight-line basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs.

Taxation

(i) Tax Expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income.

(ii) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Calculation of current tax is based on tax rates and tax laws that have been enacted or subsequently enacted by the end of the reporting period. Deferred income taxes are calculated using Balance Sheet approach. The current tax and deferred tax so calculated are adjusted for the uncertainty of the tax treatment by the tax authorities at each reporting date.

(iii) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences and incurred tax losses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Foreign currencies

(i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the company operates (‘the functional currency’). The financial statements are presented in Indian rupee (Q), which is the company’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in statement of profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges.

Earnings per Share

The earnings considered in ascertaining the Earnings per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

Employee benefits

(i) Short Term obligations

Liabilities for wages and salaries including other monetary benefits that expected to be settled within the period in which the employees render the related services are recognized in the period in which the related services and are measured at the undiscounted amount expected to be paid.

(ii) Other Long-term employee benefit

Liabilities of leave encashment is provided on the basis of earned leave standing to credit of employees and the same is discharged by the Company the end of the year and accounted for the same accordingly, if any.

(iii) Post-employment obligations

The Company has defined contribution plan in respect of payment of gratuity to employees. The contributions are being made to the exclusive trust established under the Group Gratuity Scheme of Life Insurance Corporation of India (LIC). The premium and the contribution paid every year to the LIC are charged to Statement of Profit & Loss. The Company has no further payment obligations once the contributions have been paid. The Company’s contribution to State Plans namely Employee’s State Insurance, Employee’s Provident Fund Scheme and Employee’s Pension Scheme are charged to the statement of profit and loss every year.

Provisions, Contingent Liabilities and Contingent Assets

(i) Provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation.

(ii) A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure as specified in Indian Accounting Standard 37 -“Provisions, Contingent Liabilities and Contingent Assets” is made.

(iii) Contingent Assets are not recognized in the Financial Statements.

Segment Reporting

The Company publish this Financial statement in accordance with IndAS 108, Operating segments, the company has disclosed the segment information in the financial statement.

Rounding of amounts

All amounts disclosed in the financial statements and the accompanying notes have been rounded off to the nearest lakhs and two decimals thereof, as per the requirement of Schedule III of the Companies Act 2013, unless otherwise stated as amended by 24th March 2021.

Standards Issued But Not Effective

Ministry of Corporate Affairs (“MCA”) notifies new Standards or amendments to the existing Standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below: -

Ind AS -1: - Presentation of Financial Statements: - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the financial statements.

Ind AS - 8: - Accounting Policies, Changes in Accounting Estimates and Errors: - This amendment has introduced a definition of “accounting estimates” and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and there is no impact on its financial statements.

Ind AS 12 - Income Taxes: - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and there is no impact on its financial statements.

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Mar 31, 2018

A. Significant Accounting Policies

1. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from operations includes sales of goods/vehicles/Spares parts/Accessories and services and amounts disclosed as revenue are net of trade allowances. The Company recognizes 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 specific criteria in relation to significant risk and reward and degree of managerial involvement associated with ownership or effective control have been met for each of the Company''s activities as described below. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transactions and the specifics of each arrangement and based on the general trade practice as prevailing in the market.

(i) Sale of Goods/Vehicles/Spare parts/Accessories

Sales are accounted on transfer of significant risks and rewards to the customer and as per prevailing trade practice once the good are invoiced the risk and rewards are considered to be transferred and revenue is recognized in the books of account of that period. The trade rebate received from the manufacturer in form of purchase discount is accounted for as and when it is received. The amounts of rebate/discount received on purchase invoice are shown net of basis and other amount of purchase discount/rebate received is shown separately in financial statements.

(ii) Income from services

Income from services are accounted over the period of rendering of services.

(iii) Dividend and interest income

Dividend income from investments is recognised when the shareholders'' right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably). Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

2. Property, plant and equipment

a. Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation less accumulated impairment, if any. Freehold land is measured at cost and is not depreciated. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

b. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not put to use before such date are disclosed under ‘Capital work-in-progress’.

c. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

d. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. The other repairs and maintenance of revenue nature are charged to profit or loss during the reporting period in which they are incurred.

2.1 Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of its property, plant and equipment recognized as at 1st April 2016, measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

2.2 Depreciation methods, estimated useful lives and residual value

(i) Depreciation on property, Plant and Equipment is provided based on useful life of the assets as prescribed in the Schedule -II to the Companies Act 2013 , and charged on the basis of written down Value Method.

(ii) The assets'' residual values, estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

(iii) Any Gains and losses on disposal are determined by comparing proceeds with carrying amount and are credited / debited to profit or loss.

(iv) The vehicle purchased for the purpose of the test drive are treated as an asset of the Company and depreciation is charged accordingly.

3. Impairment of Assets

(i) At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

(ii) An impairment loss is recognized in the Statement of Profit and Loss to the extent, asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not.

4. Borrowing costs

(i) Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

(ii) Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets are deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

5. Inventories

Cost of the Inventories are valued on the basis given below:

(i) Cost of finishes goods are measured at cost or market value which ever is lower.

(ii) Cost of Spares Parts and Accessories, Oils & Lubricants are measured at cost on FIFO basis.

(iii) Vehicles and Spares parts has been taken into the stock in hand of the company as and when they are dispatched from Maruti Suzuki India Limited (“MSIL’).

6. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

(i) Initial Recognition

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial instruments (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

(ii) Subsequent Measurement

1. Financial Assets at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

2. Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

3. Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

4. Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest rate method or at fair value through profit or loss.

7. Cash and cash equivalents

In the cash flow statement, cash and cash equivalents includes cash in hand, cheques and drafts in hand, balances with bank and deposits held at call with financial institutions, short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown as a part of Cash and Cash Equivalents in the cash flow statement.

8. Leasing

(i) Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

(ii) Lease rentals for operating lease are charged to the statement of profit and loss account in accordance with the respective lease agreement. The lease rental are estimated to increase periodically in line with expected general inflation cost.

9. Taxation

(i) Tax Expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income.

(ii) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period

(iii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and incurred tax losses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

(iv) The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

10. Foreign currencies

(i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the group operates (‘the functional currency’). The financial statements are presented in Indian rupee (''), which is the group’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges.

11. Earning per Share

The earnings considered in ascertaining the Earnings per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

12. Employee benefits

(i) Short Term obligations

Liabilities for wages and salaries including other monetary benefits that expected to be settled within the period in which the employees render the related services are recognized in the period in which the related services and are measured at the undiscounted amount expected to be paid.

(ii) Other Long-term employee benefit

Liabilities of leave encashment is provided on the basis of earned leave standing to credit of employees and the same is discharged by the company the end of the year and accounted for the same accordingly.

(iii) Post-employment obligations

The company has defined contribution plan in respect of payment of gratuity to employees. The contributions are being made to the exclusive trust established under the Group Gratuity Scheme of Life Insurance Corporation of India (LIC). The premium and the contribution paid every year to the LIC are charged to revenue. The Company has no further payment obligations once the contributions have been paid. The Company’s contribution to State Plans namely Employee’s State Insurance, Employee’s Provident Fund Scheme and Employee’s Pension Scheme are charged to the statement of profit and loss every year.

13. Provisions, Contingent Liabilities and Contingent Assets

(i) Provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation.

(ii) A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure as specified in Indian Accounting Standard 37 -“Provisions, Contingent Liabilities and Contingent Assets” is made.

(iii) Contingent Assets are not recognized in the Financial Statements.

14. Events occurring after Reporting Period

The final dividend on shares is recorded as a liability on the date of approval by the shareholders, and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors.

15. Segment Reporting

The accounting policies adopted for segment reporting are in accordance with the Ind AS -109 " Segment Reporting" issued by The Institute of Chartered Accountants of India. Segment revenue and expenses include amounts which can be directly identifiable to the segment on reasonable basis.

16. Rounding of amounts

All amounts disclosed in the financial statements and the accompanying notes have been rounded off to the nearest lakhs and two decimals thereof, as per the requirement of Schedule III of the Companies Act 2013, unless otherwise stated.

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Mar 31, 2016

1. Accounting Convention

The company adopts the historical cost convention on the accrual basis in preparing the accounts in accordance with generally accepted accounting principles in India and applicable statutes and comply with the Accounting Standards specified under the Companies Act 1956, {which are deemed to be applicable as per Section 133 of companies Act 2013 , read with Rule 7 of Companies (Accounts )Rules ,2014} and the other relevant provisions of the 1956 Act /2013 Act as Applicable.

All Assets and liabilities have been classified as Current and Non Current as per Company''s normal operating cycle and other criteria set out in the Schedule III of The Companies Act, 2013.

1. 1 Tangible Assets

a) Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets. The amount of capital expenditure which has not been attributed to the assets and pending for capitalization are shown as Capital Work in progress.

b) Depreciation on Fixed Assets is provided based on useful life of the assets as prescribed in the Schedule -II to the Companies Act 2013 , and charged on the basis of written down Value Method.

c) c) The vehicles purchased for the purpose of test drive are treated as an asset of the Company and depreciation is charged accordingly.

1. 2 Inventories

Cost of the Inventories are valued on the basis given below:

(i) Cost of finished goods are measured at cost or market value whichever is lower.

(ii) Cost of Spare Parts and Accessories, Oils and Lubricants are measured at cost on FIFO basis.

1. 3 Investments

Current Investment are stated at the lower of cost or fair value . Noncurrent Investments are valued at cost of acquisition, less provisions for diminution, as necessary, if any.

1.4 Lease

Lease Rentals for operating lease are charged to statement of profit and loss on accrual basis in accordance with the respective lease agreements.

1. 5 Segment Accounting

The accounting policies adopted for segment reporting are in accordance with the Accounting Standards -17 " Segment Reporting" issued by The Institute of Chartered Accountants of India. Segment revenue and expenses include amounts which can be directly identifiable to the segment on reasonable basis.

1. 6 Taxation

Provision for Income Tax comprises of the current tax and deferred tax charge or release. Current income tax is measured on the basis of taxable profits computed for current accounting period at the applicable rate of tax in accordance with The Income Tax Act, 1961. Deferred tax is recognized subject to consideration of prudence on timing difference between taxable profits and book profit that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are represented by unabsorbed depreciation and carry forward business losses are not recognized unless there is " Virtual certainty" that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1. 7 Foreign Exchange Transactions

Transactions denominated in foreign exchange , if any, are recorded at the exchange rate prevailing on the date of the transaction. Monetary items are translated at the exchange rate prevailing at the end of the year.

1. 8 Employee Benefits

In respect of payment of gratuity to employees, the contributions are being made to the trust established under the Group Gratuity Scheme of Life Insurance Corporation of India. The premium and the contribution paid every year are charged to the revenue. Leave encashment is provided on the basis of earned leave standing to credit of employees and the same is discharged by the Company by the end of the year and accounted for on actual payment basis. Ex-Gratia is accounted for on actual payment basis.

1. 9 Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations include sale of goods and services adjusted for discount (Net). Interest income is recognized on time proportion basis taking in to account the amount outstanding and applicable.

1. 10 Impairment of Assets

Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset carrying amount exceeds is its recoverable amount. The recoverable amount is the higher of the assets fair value minus the cost to sell and value in use.

1.11 Borrowing Cost

Borrowing cost that is attributable to the acquisition , construction or production of qualifying assets is capitalized as part of cost of such asset. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing cost is recognized as an expense in the Profit and Loss Account in the period in which they are incurred.

1.12 Earning per Share

The earnings considered in ascertaining the Earnings per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

1.13 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

As Stipulated in AS-28 of the ICAI, the Company assessed potential generation of economic benefits from its business units and is of the opinion that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision required to be provided in the books of accounts.

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Mar 31, 2015

1. Accounting Convention

The company adopts the historical cost convention on the accrual basis in preparing the accounts in accordance with generally accepted accounting principles in India and applicable statutes and comply with the Accounting Standards specified under the Companies Act 1956, {which are deemed to be applicable as per Section 133 of companies Act 2013, read with Rule 7 of Companies (Accounts )Rules ,2014} and the other relevent provisions of the 1956 Act /2013 Act as Applicable .

All Assets and liabilities have been classified as Current and Non Current as per Company''s normal operating cycle and other criteria set out in the Schedule III of The Companies Act, 2013.

1.1 Tangible Assets

a) Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets. The amount of capital expenditure which has not been attributed to the assets and pending for capitalization are shown as Capital Work in progress.

b) Depreciation on Fixed Assets is provided based on useful life of the assets as prescribed in the Schedule -II to the Companies Act 2013 , and charged on the basis of written down Value Method .

c) The vehicles purchased for the purpose of test drive are treated as an asset of the Company and depreciation is charged accordingly.

1.2 Inventories

Cost of the Inventories are valued on the basis given below:

(i) Cost of finished goods are measured at cost or market value which ever is lower.

(ii) Cost of Spare Parts and Accessories, Oils and Lubricants are measured at cost on FIFO basis.

1.3 Investments

Current Investment are stated at the lower of cost or fair value . Non current Investments are valued at cost of acquisition, less provisions for diminution, as necessary, if any.

1.4 Lease

Lease Rentals for operating lease are charged to statement of profit and loss on accrual basis in accordance with the respective lease agreements.

1.5 Segment Accounting

The accounting policies adopted for segment reporting are in accordance with the Accounting Standards -17 " Segment Reporting" issued by The Institute of Chartered Accountants of India. Segment revenue and expenses include amounts which can be directly identifiable to the segment on reasonable basis.

1.6 Taxation

Provision for Income Tax comprises of the current tax and deferred tax charge or release. Current income tax is measured on the basis of taxable profits computed for current accounting period at the applicable rate of tax in accordance with The Income Tax Act, 1961. Deferred tax is recognized subject to consideration of prudence on timing difference between taxable profits and book profit that originate in one period and are capable of reversal in one or more subsequent periods(s). Deferred tax assets are represented by unabsorbed depreciation and carry forward business losses are not recognized unless there is " Virtual certainity" that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.7 Foreign Exchange Transactions

Transactions denominated in foreign exchange , if any, are recorded at the exchange rate prevailing on the date of the transaction. Monetary items are translated at the exchange rate prevailing at the end of the year.

1.8 Employee Benefits

In respect of payment of gratuity to employees, the contributions are being made to the trust established under the Group Gratuity Scheme of Life Insurance corporation of India. The premium and the contribution paid every year are charged to the revenue. Leave encashment is provided on the basis of earned leave standing to credit of employees and the same is discharged by the Company by the end of the year and accounted for on actual payment basis. Ex-Gratia is accounted for on actual payment basis.

1.9 Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations include sale of goods and services adjusted for discount (Net). Interest income is recognized on time proportion basis taking in to account the amount outstanding and applicable.

1.10 Impairment of Assets

Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not berecoverable. An impairment loss is recognized for the amount by which the asset carrying amount exceeds is its reco-verable amount. The recoverable amount is the higher of the assets fair value minus the cost to sell and value in use.

1.11 Borrowing Cost

Borrowing cost that is attributable to the acquisition , construction or production of qualifying assets is capitalized as part of cost of such asset. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing cost is recognized as an expense in the Profit and Loss Account in the period in which they are incurred.

1.12 Earning per Share

The earnings considered in ascertaining the Earnings per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

1.13 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

1. Accounting Convention

The company adopts the historical cost convention on the accrual basis in preparing the accounts in accordance with generally accepted accounting principles in India and applicable statutes and comply with the Accounting Standards referred in Section 211 (3C) Companies (Accounting Standards) Rules 2006, as amended and the other relevant provisions of The Companies Act, 1956.

All Assets and liabilities have been classified as Current and Non Current as per Company''s normal operating cycle and other criteria set out in the Revised Schedule VI of The Companies Act, 1956.

1. 1 Tangible Assets

a) Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets. The amount of capital expenditure which has not been attributed to the assets and pending for capitalization are shown as Capital Work in progress.

b) Depreciation on fixed assets is provided on written down value method at the rates prescribed in the schedule XIV of The Companies Act, 1956 on pro rata basis.

c) The vehicles purchased for the purpose of test drive are treated as an asset of the Company and depreciation is charged accordingly.

1. 2 Inventories

Cost of the Inventories are valued on the basis given below: (i) Cost of finished goods are measured at cost or market value which ever is lower. (ii) Cost of Spare Parts and Accessories, Oils and Lubricants are measured at cost on FIFO basis.

1. 3 Investments

Investments are valued at cost of acquisition, less provisions for diminution, as necessary, if any.

1. 4 Segment Accounting

The accounting policies adopted for segment reporting are in accordance with the Accounting Standards -17 " Segment Reproting" issued by The Institute of Chartered Accountants of India. Segment revenue and expenses include amounts which can be directly indentifiable to the segment or on reasonable basis.

1. 5 Taxation

Provision for Income Ta x comprises of the current tax and deferred tax charge or release. Current income tax is measured on the basis of taxable profits computed for current accounting period at the applicable rate of tax in accordance with The Income Tax Act, 1961. Deferred tax is recognized subject to consideration of prudence on timing difference between taxable profits and book profit that originate in one period and are capable of reversal in one or more subsequent periods(s). Deferred tax assets are represented by unabsorbed depreciation and carry forward business losses are not recognized unless there is " Virtual certainity" that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1. 6 Foreign Exchange Transactions

Transactions denominated in foreign exchange , if any, are recorded at the exchange rate prevailing on the date of the transaction. Monetary items are translated at the exchange rate prevailing at the end of the year.

1. 7 Employee Benefits

In respect of payment of gratuity to employees, the contributions are being made to the trust established under the Group Gratuity Scheme of Life Insurance corporation of India. The premium and the contribution paid every year are charged to the revenue. Leave encashment is provided on the basis of earned leave standing to credit of employees and the same is discharged by the Company by the end of the year and accounted for on actual payment basis. Ex-Gratia is accounted for on actual payment basis.

1. 8 Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations include sale of goods and services adjusted for discount (Net). Interest income is recognized on time proportion basis taking in to account the amount outstanding and applicable.

1. 9 Impairment of Assets

Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset carrying amount exceeds is its recoverable amount. The recoverable amount is the higher of the assets fair value minus the cost to sell and value in use.

1.10 Borrowing Cost

Borrowing cost that is attributable to the acquisition, construction or production of qualifying assets is capitalized as part of cost of such asset. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing cost is recognized as an expense in the Profit and Loss Account in the period in which they are incurred.

1.11 Earning per Share

The earnings considered in ascertaining the Earnings per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

1.12 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

1. Accounting Convention

The company adopts the historical cost convention on the accrual basis in preparing the accounts in accordance with generally accepted accounting principles in India and applicable statutes and comply with the Accounting Standards referred in Section 211 (3C) Companies (Accounting Standards) Rules 2006, as amended and the other relevant provisions of The Companies Act, 1956.

All Assets and liabilities have been classified as Current and Non Current as per Company''s normal operating cycle and other criteria set out in the Revised Schedule VI of The Companies Act, 1956.

1. 1 Tangible Assets

a) Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets. The amount of capital expenditure which has not been attributed to the assets and pending for capitalization are shown as Capital Work in progress.

b) Depreciation on fixed assets is provided on written down value method at the rates prescribed in the schedule XIV of The Companies Act, 1956 on pro rata basis.

c) The vehicles purchased for the purpose of test drive are treated as an asset of the Company and depreciation is charged accordingly.

1. 2 Inventories

Cost of the Inventories are valued on the basis given below:

(i) Cost of finished goods are measured at cost or market value which ever is lower.

(ii) Cost of Spare Parts and Accessories, Oils and Lubricants are measured at cost on FIFO basis.

1. 3 Investments

Investments are valued at cost of acquisition, less provisions for diminution, as necessary, if any.

1. 4 Segment Accounting

The accounting policies adopted for segment reporting are in accordance with the Accounting Standards -17 ''Segment Reproting” issued by The Institute of Chartered Accountants of India. Segment revenue and expenses include amounts which can be directly identifiable to the segment or allocable on a reasonable basis.

1. 5 Taxation

Provision for Income Ta x comprises of the current tax and deferred tax charge or release. Current income tax is measured on the basis of taxable profits computed for current accounting period at the applicable rate of tax in accordance with The Income Ta x Act, 1961. Deferred tax is recognized subject to consideration of prudence, on timing difference between taxable profits and book profit that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are represented by unabsorbed depreciation and carry forward business losses are not recognized unless there is '' Virtual Certainty” that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1. 6 Foreign Exchange Transactions

Transactions denominated in foreign exchange , if any, are recorded at the exchange rate prevailing on the date of the transaction. Monetary items are translated at the exchange rate prevailing at the end of the year.

1. 7 Employee Benefits

In respect of payment of gratuity to employees, the contributions are being made to the trust established under the Group Gratuity Scheme of Life Insurance Corporation of India. The premium and the contribution paid every year are charged to the revenue. Leave encashment is provided on the basis of earned leave standing to credit of employees and the same is discharged by the Company by the end of the year and accounted for on actual payment basis.

1. 8 Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations include sale of goods and services adjusted for discount (Net). Interest income is recognized on time proportion basis taking in to account the amount outstanding and applicable.

1. 9 Impairment of Assets

Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset carrying amount exceeds is its recoverable amount. The recoverable amount is the higher of the assets fair value minus the cost to sell and value in use.

1.10 Borrowing Cost

Borrowing cost that is attributable to the acquisition , construction or production of qualifying assets is capitalized as part of cost of such asset. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing cost is recognized as an expense in the Profit and Loss Account in the period in which they are incurred.

1.11 Earning per Share

The earnings considered in ascertaining the Earnings per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

1.12 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

1. Accounting Convention

The company adopts the historical cost convention on the accrual basis in preparing the accounts in accordance with generally accepted accounting principles in India and applicable statutes and comply with the Accounting Standards referred in Section 211 (3C) Companies (Accounting Standards) Rules 2006, as amended and the other relevant provisions of The Companies Act, 1956.

All Assets and liabilities have been classified as Current and Non Current as per Company's normal operating cycle and other criteria set out in the Revised Schedule VI of The Companies Act, 1956.

1. 1 Tangible Assets

a) Fixed Assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets. The amount of capital expenditure which has not been attributed to the assets and pending for capitalization are shown as Capital Work in progress.

b) Depreciation on fixed assets is provided on written down value method at the rates prescribed in the schedule XIV of The Companies Act, 1956 on pro rata basis.

c) The vehicles purchased for the purpose of test drive are treated as an asset of the Company and depreciation is charged accordingly.

1. 2 Inventories

Cost of the Inventories are valued on the basis given below:

(i) Cost of finished goods are measured at cost or market value which ever is lower.

(ii) Cost of Spare Parts and Accessories, Oils and Lubricants are measured at cost on FIFO basis.

1. 3 Investments

Investments are valued at cost of acquisition, less provisions for diminution, as necessary, if any.

1. 4 Segment Accounting

The accounting policies adopted for segment reporting are in accordance with the Accounting Standards -17 " Segment Reproting" issued by The Institute of Chartered Accountants of India. Segment revenue and expenses include amounts which can be directly indentifiable to the segment or allocable on a reasonable basis.

1. 5 Taxation

Provision for Income Tax comprises of the current tax and deferred tax charge or release. Current income tax is measured on the basis of taxable profits computed for current accounting period at the applicable rate of tax in accordance with The Income Tax Act, 1961. Deferred tax is recognized subject to consideration of prudence, on timing difference between taxable profits and book profit that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are represented by unabsorbed depreciation and carry forward business losses are not recognized unless there is " Virtual Certainty" that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1. 6 Foreign Exchange Transactions

Transactions denominated in foreign exchange , if any, are recorded at the exchange rate prevailing on the date of the transaction. Monetary items are translated at the exchange rate prevailing at the end of the year.

1. 7 Employee Benefits

In respect of payment of gratuity to employees, the contributions are being made to the trust established under the Group Gratuity Scheme of Life Insurance Corporation of India. The premium and the contribution paid every year are charged to the revenue. Leave encashment is provided on the basis of earned leave standing to credit of employees and the same is discharged by the Company by the end of the year and accounted for on actual payment basis. Ex-Gratia is accounted for on actual payment basis.

1. 8 Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations include sale of goods and services adjusted for discount (Net). Interest income is recog- nized on time proportion basis taking in to account the amount outstanding and applicable.

1. 9 Impairment of Assets

Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset carrying amount exceeds is its recoverable amount. The recoverable amount is the higher of the assets fair value minus the cost to sell and value in use.

1.10 Borrowing Cost

Borrowing cost that is attributable to the acquisition, construction or production of qualifying assets is capitalized as part of cost of such asset. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing cost is recognized as an expense in the Profit and Loss Account in the period in which they are incurred.

1.11 Earning per Share

The earnings considered in ascertaining the Earnings per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.

1.12 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

1. Accounting Convention

The company adopts the historical cost convention on the accrual basis in preparing the accounts in accordance with the requirements of the Companies Act, 1956 and applicable statutes and comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

2. Fixed Assets

a) Fixed assets are stated at their original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets. The amount of capital expenditure which has not been attributed to the assets and pending for capitalization are shown as Capital Work in Progress.

b) Depreciation on fixed assets is provided on written down value method at the rates prescribed in the schedule XIV of the Companies Act, 1956 on pro rata basis.

c) The vehicles purchased for the purpose of test drive are treated as an asset of the Company and depreciation charged accordingly.

3. Inventories

Items of the inventories are valued on the basis given below:

(i) Finished Goods: At cost or market value whichever is lower.

(ii) Consumable stores, Oils, Lubricants & Accessories: At cost on FIFO basis.

(iii) Spare parts: At cost on FIFO basis.

(iv) Work -in- progress: At estimated cost or realizable value, whichever is lower. Cost being determined on the basis of spare parts consumed/issued on vehicles under going repairs /service at the closing of the financial year.

4. Investments

Investments are stated at cost, if any.

5. Segment Accounting

The accounting policies adopted for segment reporting are in accordance with the Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India. Segment revenue and expenses include amounts, which can be directly identifiable to the segment or allocable on a reasonable basis.

6. Taxation Accounting

a) Provision for income tax comprises of the current tax and deferred tax charge or release. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act 1961.Deferred Tax is recognized subject to consideration of prudence, on timing differences, being difference be- tween taxable and accounting Income / Expenditure that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred Tax Assets are not recognized unless there is "Virtual Certainty" that suffi- cient future taxable income will be available against which such deferred tax assets will be realize.

7. Foreign Exchange Transactions

Transactions in foreign exchange, if any, are recorded at the exchange rate prevailing on the date of the transaction. Monetary items are translated at the exchange rate prevailing at the end of the year.

8. Retirement Benefits

In respect of payment of gratuity to employees, the contributions are being made to the trust established under the Group Gratuity Scheme of Life Insurance Corporation of India. The premium and the contribution paid every year are charged to revenue.

Leave encashment is provided on the basis of earned leave standing to the credit of the employees and the same is discharged by the Company by the end of the year and accounted for on actual payment basis. Ex-gratia is accounted for on actual payment basis.

9. Revenue Recognition

Income and expenditure are accounted for on accrual basis.

10. Impairment of Fixed Asset

Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the Assets carrying amount exceeds is recoverable amount. The recoverable amount is the higher of the assets fair value less cost to sell and value in use.

11. Borrowing Cost

Borrowing cost that is attributable to the acquisition, construction or production of qualifying assets is capitalized as part of cost of such asset. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing cost is recognized as an expense in the period in which they are incurred.

12. Earnings Per Share

The earnings considered in ascertaining the Earnings per share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.