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.