S.No
1.
2.
3.
4.
ACCOUNTING
POLICY
REVENUE
RECOGNITION
DEPRECIATION
/AMORTISATIO
N
INVENTORIES
TAX
MARUTI SUZUKI
Revenues are
recognised on transfer
of significant risks and
rewards to the
customer/dealer which
takes place on dispatch
of goods from the
factory and
Port respectively. The
Company recognises
income from services on
rendering of services.
TATA MOTORS
Revenues are recognised on
the sale of products, net of
discounts and sales
incentives, when the
products are delivered to
the dealer/customer or
when
delivered to the carrier for
export sales, which is when
risks and rewards of
ownership pass to the
dealer/customer.
Revenues are recognised
when collectability of the
resulting receivables is
reasonably assured.
Depreciation on
Depreciation is provided on
tangible fixed assets is
SLM on a pro-rata basis, at
done using the SLM on a the rates prescribed in
pro-rata basis at the
Schedule XIV to the
rates prescribed in
Companies Act, 1956 except
Schedule XIV to the
in the case of Technical
Companies Act, 1956
know-how - at 16.67%
except for certain fixed
(SLM) - Laptops - at 23.75%
assets where based on
(SLM) - Cars - at 23.75%
the managements
(SLM) - Assets acquired
estimate of the useful
prior to April 1, 1975 - on
life of the asset, higher
Written Down Value basis at
depreciation is provided rates specified in Schedule
by SLM. Ex: Plant and
XIV to the Companies Act,
Machinery 8-11 Years
1956.
Dies and Jigs 4 Years.
Inventories are valued
Inventories are valued at
at the lower of cost,
the lower of cost and net
determined on the
realisable value, determined
weighted average basis by moving weighted
and net realisable value. average/monthly moving
weighted average basis.
Current tax and
Tax expense comprises of
deferred tax, is included current and deferred taxes.
in determining the net
Deferred tax is recognised,
profit/ (loss) for the
on timing differences.
year. Deferred tax is
Deferred tax assets in
recognised for all timing respect of unabsorbed
differences. Deferred
depreciation and carry
tax assets are carried
forward of losses are
forward to the extent it recognised if there is virtual
is reasonably certain
certainty that there will be
MAHINDRA & MAHINDRA
Sales of products and services
including export benefits
thereon are recognised when
the products are shipped to the
customer/dealer or services
rendered.
Dividend from investments is
recognised in the Statement of
Profit and Loss when the right to
receive payment is established.
Depreciation on fixed assets, is
charged on Straight Line Method
(SLM) on a pro-rata basis at rates
specified in Schedule XIV to the
Companies Act, 1956 except
Office Equipment on which
depreciation is charged at the
rate of 16.21% instead of 4.75%
as prescribed in Schedule XIV.
Inventories are valued at the
lower of cost, determined on the
weighted average basis and net
realisable value.
Tax expense comprises of
Current tax and deferred tax.
Deferred tax is recognised, on
timing differences.
Deferred tax assets arising on
account of unabsorbed
depreciation or carry
forward of tax losses are
recognised only to the extent
that there is virtual
5.
6.
LEASE
IMPAIRMENT OF
ASSETS
that future taxable
profit will be available
against which such
deferred tax assets can
be realised.
sufficient future taxable
income available to realise
such losses
Payments made under
operating leases are
charged to the
statement of profit and
loss on a straight-line
basis over the period of
the lease or the terms
of underlying
agreement/s as the case
may be.
If there is any indication
that an asset may be
impaired, the Company
estimates the
recoverable amount. If
the carrying amount of
the asset exceeds its
recoverable amount, an
impairment loss is
recognised in the
statement of profit and
loss to the extent the
carrying amount
exceeds the recoverable
amount.
Operating leases are not
recognised on the
Company’s Balance Sheet.
Payments under operating
leases are recognised in the
Profit and Loss Statement
on a straight-line basis over
the term of the lease.
The Company assesses
whether there is any
indication that the fixed
assets with finite lives may
be impaired. If any such
indication exists, the
recoverable amount of the
asset is estimated in order
to determine the extent of
the impairment, if any.
certainty supported by
convincing evidence that
sufficient future taxable income
will be available against which
such deferred tax assets can be
realised.
Operating leases are not
recognised on the Company’s
Balance Sheet. Payments under
operating leases are recognised
in the Profit and Loss Statement
on a straight-line basis over the
term of the lease.
Management periodically
assesses using external and
internal sources whether there is
an indication that an asset may
be impaired.
The impairment loss to be
expensed is determined as the
excess of the carrying amount
over the higher of the asset’s net
sales price or present value as
determined above.