Financial and Managerial Accounting Assignment Submitted by: Gaurav Pal, A037

Individual Project

The objective of this report is to find out how InterGlobe Aviation, Infosys, and Maruti Suzuki
complies with Indian Accounting Standards (IND-AS)

Maruti Suzuki India Limited

Company's overall sales in the domestic market fell by 18% throughout the year, CNG sales
increased by 1%. 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::Presentationnof FinancialuStatements

 The financial statements are under IND AS.

Ind AS 115::RevenueufromuContracts with Customers

 When the quantity of revenue and its corresponding cost can be accurately assessed,
revenue is measured at fair value and recognized.
 When the Group passes custody of such products to the client on dispatch from the factory
or the port, revenue is recognized for domestic and export sales of automobiles, spare parts,
and accessories.
 When revenue is consistently quantified and the possibility of interest being realized is high,
interest income is recognized.

Ind AS 2::Inventories

 The lower cost (calculated on a weighted average basis) and net realizable value are used to
value inventories.
 Raw materials, direct labor, additional direct costs, and an appropriate amount of variables
according to typical operating capacity make up the cost of finished goods and work in
progress.

Ind AS 16::Property, PlantuanduEquipment

 For measuring freehold land, the value is taken at cost and depreciation is not considered.
PPE, which basically includes Property, plant, and equipment have been stated at the cost of
acquisition or the other being construction less accumulated depreciation.
 The straight-line approach is used to compute depreciation.

Ind AS 7::StatementuofuCash Flows

 For its statement of cash flows, the company uses the indirect method, which is under Ind
AS.
 Current Assets and Liabilities, Taxes, Unrealized Foreign Currency Gains, and Joint Venture
Profit and Dividends are all reported under the rules.

1
Financial and Managerial Accounting Assignment Submitted by: Gaurav Pal, A037

Infosys Ltd

As of March 31, 2020, Infosys was present in 46 countries and 220 locations. The company owns 23
direct subsidiaries and roughly 52 step-down subsidiaries – all taken into account till March 31, 2020.

Ind AS 1::Presentationnof FinancialuStatements

 Except for a few items measured at fair value, Infosys' financial statements are prepared
under Ind AS 1 using the historical cost convention on an accrual basis.
 As may be observed from their creation of a balance sheet, statement of cash flows, and
other financial statements, they encompass all topics listed in the accounting standard.

Ind AS 115::RevenueufromuContracts with Customers

 The Company adopted Ind AS 115, Revenue from Contracts with Customers, on April 1,
2018. The impact on the acceptance of Ind AS 115 was negligible.
 When the contract has been approved in writing by the parties to the contract, revenues
from client contracts are considered for recognition and measurement.
 The transaction price is assigned to each distinct performance obligation by the Group based
on the respective standalone selling price.

Ind AS 2::Inventories

 As a consulting and IT services firm, Infosys does not keep physical inventory. As a result, Ind
AS 2 does not apply.

Ind AS 16::Property, PlantuanduEquipment

 Infosys records its Property, Plant, and Equipment (PPE) at cost, less any accumulated
depreciation and impairments.
 The Company uses the straight-line approach to depreciate property, plant, and equipment
over their anticipated useful lifetimes.
 Management determines the usable life and residual values of the Group's assets at the time
of acquisition and reviews them on each financial year-end.

Ind AS 7::StatementuofuCash Flows

 For its cash flow statement, Infosys uses the indirect technique.
 To limit the risk of foreign exchange exposure on highly probable predicted cash
transactions, the Company classifies certain foreign exchange forward and options contracts
as cash flow hedges. As of now, the Company has a cash flow hedge reserve of (15) CR.

2
Financial and Managerial Accounting Assignment Submitted by: Gaurav Pal, A037

Interglobe Aviation Ltd

For greenfield and brownfield airport developments, the GOI has permitted 100 percent FDI through
the automatic route. According to the Brand Finance Airlines 50 survey, IndiGo is the strongest
airline and most valuable brand.

Ind AS 1::Presentationnof FinancialuStatements

 Except for some financial assets and liabilities that are valued at fair value or amortized cost,
the consolidated and standalone financial statements have been produced on a historical
cost basis.
 The Group firms' financial statements are consolidated line by line, and intra-group balances 
and transactions are deleted during consolidation.

Ind AS 115::RevenueufromuContracts with Customers

 Passenger revenue is recorded on a flying basis, that is when the service is provided.
 Based on prior trends in proportion to the pattern of rights exercised by the customer, the
Company recognizes income from unexercised non-refundable rights of customers.
 The company has now started recognizing revenues under the pattern of rights exercised by
passengers, thanks to the use of IND AS 115.

Ind AS 2::Inventories

 The lower cost or Net Realisable Value (‘NRV') is used to value inventories.
 On a weighted average cost basis, costs are attributed to individual inventory items.
 All damaged, outmoded, and slow-moving objects are given proper consideration as
necessary.
 At each reporting date, an item-by-item comparison of cost and net realizable value is done.

Ind AS 16::Property, PlantuanduEquipment

 Property, plant, and equipment (‘PPE') are valued at their original cost, less accrued
depreciation and impairment losses.
 Depreciation on property, plant, and equipment is calculated using the written down value
method, according to the rates and procedures outlined in the Companies Act of 2013.

Ind AS 7::StatementuofuCash Flows

 The ‘Indirect technique' was used to construct the Consolidated Cash Flow Statement.
 Interest paid and received, as well as interest and dividends received, are all categorized as
financing and investing cash flows, respectively.
 Non-cash transactions include depreciation and bad debts written off, as well as non-cash-
related incentives, claims, and credits.