a) Basis of preparation
The financial statements of the Company have been prepared and presented in accordance with the Indian Accounting Standards (Ind
AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules 2015, as
amended from time to time and other relevant provisions of the Companies Act, 2013.
The financial statements have been prepared under the historical cost convention on accrual basis of accounting, except for certain
items of Assets and Liabilities that have been measured on fair value basis. Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services. Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or revision to existing accounting standards requires a change in the accounting policy
hitherto in use. Management evaluates all recently issued or revised accounting standards on a periodic basis.
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria
set out in Note 2(r). Based on the nature of products and services and the time between the acquisition of assets for processing and
their realization in cash and cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current
and non-current classification of assets and liabilities.
b) Statement of Compliance with Ind AS
The Financial Statements comprising Balance Sheet, Statement of Profit and Loss, Statement of Changes in Equity, Statement of Cash
Flow together with notes for the year ended March 31,2025, have been prepared in accordance with Ind AS as notified above.
c) Changes in Accounting Standards effective from 1st April 2024
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
During the year ended March 31,2025, MCA had notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the new
pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements.
d) Changes in Accounting Standards that may affect the Company after 31st March 2025
On May 7th, 2025, MCA has notified amendment to Ind AS 21 on determining when a currency is non-exchangeable and require estimation
of the spot exchange rate using observable market-based inputs applicable from May 7th, 2025.
The Company is in the process of evaluating the impact of the above amendment which is not expected to have any material impact on
the financial statements of the Company.
e) Functional and Presentation Currency
Items included in financial statements of the Company are measured using the currency of the primary economic environment in which
the Company operates (“the functional currency”). Indian rupee is the functional currency of the Company.
The Financial Statements are presented in Indian Rupees which is the Company's presentation currency. All financial information presented
in Indian Rupees has been rounded to the nearest Crore (Cr) with two decimals except where otherwise indicated.
f) Critical Accounting Judgments, Assumptions and Key Sources of Estimation Uncertainty
The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent assets and
contingent liabilities at the date of financial statements, income and expenses during the period. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimates are revised and in future periods which are affected.
i . Classification of investments in TVS Automobile Solutions Private Limited & TASL Automobile Solutions Private Limited
The Company holds investments in equity shares of TVS Automobile Solutions Private Limited ("TVS ASPL") & TASL Automobile Solutions
Private Limited (“TASL”). In the opinion of the management, TVS ASPL & TASL are not considered to be associates of the Company.
Accordingly, the investments in their shares have been designated as investment at FVTOCI.
ii. Lease
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the
applicable discount rate.
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over
the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company's operations taking
into account the location of the underlying asset and the availability of suitable alternatives. The Company revises the lease term if there
is a change in the non-cancellable period of a lease.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of
12 months or less and leases for which the underlying asset is of low value.
The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases
with similar characteristics.
Assumptions and Key Sources of Estimation Uncertainty
i . Fair value measurements and valuation processes
Some of the Company's assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of
an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the
Company engages third party qualified valuers to perform the valuation. Management works closely with the qualified external valuers
to establish the appropriate valuation techniques and inputs to the model.
Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed
in Note 2(q).
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