Sahil Vyas

H046

Financial Accounting and

Management Accounting

Individual Assignment (Ind AS)

Sahil Vyas
80511020715
H046

1
 Sahil Vyas
H046

Maruti Suzuki India Ltd

Seven out of the top ten best-selling models in India came from the Company. Maruti Suzuki has
been leading the green mobility initiative in India by providing the factory fitted S-CNG Technology.
During the year, while overall sales of the Company in domestic market declined by 18%, the CNG
sales grew by 1%. Year 2019-2020 have been one of the worst years with all the negative factors
stuck simultaneously. During the year, the Company exported 102,171 vehicles to over 100
countries, registering a decline of 6%. Large scale initiatives are taken up to develop affordable small
cars in diesel segment. Also the CNG cars are being aggressively promoted as The government has
already completed the bidding of 8,000 new CNG stations in various regions across the country.

Ind AS 1 - Presentation of Financial Statements

• Financial statements comply with IND AS.

• Statement of equity has no major change.
• Remeasurement gains and losses arising from experience adjustments and changes in
actuarial assumptions are recognised in the period in which they occur.

Ind AS 115 - Revenue from Contracts with Customers

• Revenue is measured at the fair value and recognizes them when the amount of revenue
and its related cost can be reliably measured.
• Revenue is recognised for domestic and export sales of vehicles, spare parts, and accessories
when the Group transfers control over such products to the customer on dispatch from the
factory and the port respectively.
• Interest Income is recognised when the income is measured reliably and the probability of
interest being realized is high
• Revenue from engineering services are recognised as the related services are performed.
Revenue from extended warranty is recognised on time proportion basis.

Ind AS 2 - Inventories

• Inventories are valued at the lower of cost, determined on the weighted average basis and
net realisable value
• Cost of finished goods & work in progress comprises raw materials, direct labour, other
direct costs and appropriate proportion of variable according to normal operating capacity.
• Cost of inventories also include all other costs incurred in bringing the inventories to their
present location and condition
• Costs of purchased inventory are determined after deducting rebates and discounts

Ind AS 16 - Property, Plant and Equipment

2
 Sahil Vyas
H046

• 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
• Depreciation is calculated using the straight-line method

Ind AS 7 - Statement of Cash Flows

• Company follows indirect method for its statement of cash flows which is in compliance with
Ind AS
• Cash flow hedging reserve is nil
• Current Assets and Liabilities, Taxes, unrealized gain from foreign currency and Share of
profit and dividend from joint ventures are reported according to the standards

Infosys Ltd
Infosys have added 2.66 million sq. ft. of physical infrastructure space during the year. The total
available space as on March 31, 2020 stands at 51.97 million sq. ft. It has presence in 46 countries
across 220 locations as on March 31, 2020. At the beginning of the year, Infosys had 25 direct
subsidiaries and 34 step-down subsidiaries. As on March 31, 2020, it have 23 direct subsidiaries and
52 step-down subsidiaries. Infosys handles eight products/patforms.

Ind AS 1 - Presentation of Financial Statements

• The financial statements of Infosys are prepared as per Ind AS 1 under historical cost
convention on accrual basis except for few measured at fair value.
• They cover all concepts mentioned under the accounting standard as can be seen from their
preparation of a Balance sheet, statement of Cash flows, etc.
• The financial statements of the Group companies are consolidated on a line-by-line basis
and intra-group balances and transactions including unrealized gain / loss from such
transactions are eliminated upon consolidation.

Ind AS 115 - Revenue from Contracts with Customers

• Effective April 1, 2018, the Company adopted Ind AS 115, Revenue from Contracts with
Customers The effect on adoption of Ind AS 115 was insignificant.
• Revenues from customer contracts are considered for recognition and measurement when
the contract has been approved in writing by the parties to the contract.
• The Group allocates the transaction price to each distinct performance obligation based on
the relative standalone selling price.
• The price that is regularly charged for an item when sold separately is the best evidence of
its standalone selling price.

3
 Sahil Vyas
H046

• In the absence of such evidence, the primary method used to estimate standalone selling
price is the expected cost plus a margin, under which the Group estimates the cost of
satisfying the performance obligation and then adds an appropriate margin based on similar
services.

Ind AS 2 - Inventories
• Infosys being a consulting and IT services company doesn’t hold any physical inventory.
Therefore, the Ind AS 2 is not applicable.

Ind AS 16 - Property, Plant and Equipment

• Infosys record their Property, Plant and Equipment (PPE) at cost, less accumulated
depreciation and impairments, if any
• The Company depreciates property, plant and equipment over their estimated useful lives
using the straight-line method
• The useful lives and residual values of Group’s assets are determined by the Management at
the time the asset is acquired and reviewed periodically, including at each financial year end

Ind AS 7 - Statement of Cash Flows

• Infosys follows indirect method for its statement of cash flows.

• The Company designates certain foreign exchange forward and options contracts as cash
flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast
cash transactions as on date company has cash flow hedge reserve of (15) CR

Interglobe Aviation Ltd

According to the IndiGo management, In the medium to long term, once the crisis is over, the
demand outlook for aviation remains very strong in India largely driven by under-penetration, rise in
working population and expansion of middle class. Also, Airport Authority of India (“AAI”) has
planned to invest Rs. 25,000 crores (USD 3.58 billion) in the next five years to augment facilities and
infrastructure at the airports. As of March 2019, India had 103 operational airports. Government has
envisaged increasing the number of operational airports to 190-200 by FY 2040. The GOI has allowed
100% FDI under automatic route for greenfield and brownfield airport projects. IndiGo is recognized
as strongest airline and most valuable brands as per Brand Finance Airlines 50 report.

Ind AS 1 - Presentation of Financial Statements(done)

4
 Sahil Vyas
H046

• The consolidated & standalone financial statements have been prepared on the historical
cost basis except certain financial assets and liabilities that are measured at fair value or
amortised cost
• The consolidated & standalone financial statements have been prepared on the historical
cost basis except certain financial assets and liabilities that are measured at fair value or
amortised cost
• The financial statements of the Group companies are consolidated on a line-by-line basis
and intra-group balances and transactions are eliminated upon consolidation

Ind AS 115 - Revenue from Contracts with Customers

• The Group recognises passenger revenue on flown basis i.e. when the service is rendered.
• the Company recognises revenue from unexercised rights of customers which are non-
refundable in nature, based on past trends in proportion to the pattern of rights exercised
by the customer.
• Now through using IND AS 115 the company has begun recognizing revenues concomitant to
the pattern of rights exercised by the passengers.
• Recognition of revenue for ancillary services such as modification charges, convenience
charges were recognised on flown basis.

Ind AS 2 - Inventories

• Inventories are valued at lower of cost or Net Realisable Value (‘NRV’)

• Cost are assigned to individual items of inventory on the weighted average cost basis
• Where necessary, due allowance is made for all damaged, obsolete and slow moving items.
• The comparison of cost and net realizable value is made on an item by item basis at each
reporting date.

Ind AS 16 - Property, Plant and Equipment

• Items of property, plant and equipment(‘PPE’) are measured at cost, less accumulated
depreciation and accumulated impairment losses
• Depreciation is calculated on cost of items of PPE less their estimated residual values and is
charged to Standalone & consolidated Statement of Profit and Loss
• Depreciation on property, plant and equipment is provided on written down value method
at the rates and in the manner provided in Companies act,2013
• Depreciation on owned aircraft and spare engine, rotables and non-aircraft equipment is
provided on the straight line method
• Depreciation on PPE has been charged based on useful lives as per Companies Act

Ind AS 7 - Statement of Cash Flows

• The Consolidated Cash Flow Statement was prepared in accordance in ‘Indirect method’
• Interest paid and interest and dividends received all are classified as financing cash flows
and investing cash flows, respectively

5
 Sahil Vyas
H046

• Depreciation and bad debts written off whereas non-cash related incentives, claims and
credits are all included in the Non-Cash transactions