Note Particulars
Note 1. General Information
The company is engaged in the business of manufacturing of EV Buses and its first batch of Luxury EV buses rolled out in March 2025. The places
of business are at Mumbai and Bengaluru.
Note 2. Basis of preparation of financial statements
Statement of compliance
The Financial statements of the Company comply with all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of
the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.
Functional and presentation currency
These financial statements are presented in Indian rupees, which is also the Company's functional currency.
Basis of measurement
The financial statements have been prepared on a historical cost basis, except for the following:
• certain financial assets and liabilities (including derivative instruments) that are measured at fair value; and
• net defined benefit (asset)/ liability that are measured at fair value of assets less present value of defined benefit obligations.
2A Use of estimates
The preparation of the financial statements in accordance with Ind AS requires use of judgements, estimates and assumptions, that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The actual results may differ from these
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised prospectively.
Assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ended 31 March 2025 are as
follows:
Measurement of fair values
The Company's accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and
liabilities.
The Company has an established control framework with respect to the measurement of fair values, which includes overseeing all significantfair
value measurements, including Level 3 fair values by the management. The management regularly reviews significant unobservable inputs and
valuation adjustments. If third party information, such as broker quotes orpricing services, is used to measure fair values, then the management
assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including
the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of a financial asset or a financial liability, the Company uses observable market data as far as possible. Fair values
are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: inputs otherthan quoted prices included in Level 1 thatare observable forthe asset orliability, either directly (i.e. as prices) orindirectly
(i.e. derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement. The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the
change has occurred.
2B Significant accounting policies:
The accounting policies set out below have been applied consistently to the periods presented in the financial statements.
a. Revenue recognition
Sale of goods is recognized as revenue when the significant risks and rewards of ownership of the goods have passed to the buyer. Revenues are
i. recognized when collectability of the resulting receivable is reasonably assured. Revenue from the sale of goods is measured at the fair value of
the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates
ii. Interest income is recognized on a time proportionate basis, taking into account the amount outstanding and the rates applicable.
b. Income taxes
Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law), deferred tax
charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period) and Minimum
Alternate Tax (MAT) credit entitlement.
Current tax
Current tax is computed and provided for in accordance with the applicable provisions of the Income Tax Act, 1961.
c. Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and theircarrying amounts forfinancial reporting
purposes at the reporting date.
Deferred tax assets and liabilities are measured atthe tax rates thatare expected to apply in the year when the asset is realised or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income orin equity). Deferred tax items
are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilitiesare offset ifa legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation.
d. Borrowing costs
Borrowing costs incurred on constructing or acquiring a qualifying asset are capitalized as cost of that asset until it is ready for its intended use. A qualifying asset is an
assetthat necessarilytakesa substantialperiod of time to get readyforits intended use. All other borrowing costs are charged to revenue and recognized asan expense in
the Statement of Profit and Loss.
|