1.11 Provisions and Contingent Liabilities
The Company creates a provision when there is present
obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate
can be made of the amount of the obligation such as
product warranty costs. A disclosure for a contingent
liability is made when there is a possible obligation
or a present obligation that may, but probably will
not, require an outflow of resources. When there is a
possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote,
no provision or disclosure is made.
1.12 Operating lease including Investment Properties
As a Lessor
The company has leased out its assets and such
leases where the company has substantially retained
all the risks and rewards of ownership are classified
as operating leases. Lease income on such operating
leases are recognised in the statement of profit &
loss on a straight line basis over the lease term in a
manner which is representative of the time pattern in
which benefit derived from the use of the leased asset
is diminished. Initial direct costs are recognised as an
expense in the statement of profit & loss in the period
in which they are incurred.
Under operating lease, the asset is capitalised within
property plant & equipment and depreciated over
its useful economic life. Therefore, Ind AS 116 does
not have an impact for leases where the company
is the lessor.
As a Lessee
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. The
Company’s lease asset primarily consists of Building.
The company assesses whether a contract contains
a lease, at inception of contract. A contract is, or
contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of
time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an
identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all the economic
benefits from use of the asset through the period
of the lease and
(iii) the Company has the right to direct the
use of the asset.
At the date of commencement of the lease, the
Company recognizes a right-of-use (ROU) asset and a
corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term
of 12 months or less (short-term leases), and lease
contract for which the underlying asset is of low value
(low-value assets). For these short-term, the Company
recognizes the lease payments as an operating expense
on a straight-line basis over the term of the lease.
The right-of-use assets are initially recognised at cost,
which comprises the initial measurement of the lease
liability adjusted plus any initial direct costs less any
lease incentives. They are subsequently measured at
cost less accumulated depreciation and impairment
losses, if any. Right-of-use assets are depreciated
from the commencement date on a straight-line basis
over the shorter of the lease term and useful life of the
underlying asset.
The lease liability is initially measured at the present
value of the future lease payments. The lease payments
are discounted using the interest rate of cost of capital.
The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to
reflect the lease payments made.
In calculating the present value of lease payments, the
company uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is not readily determinable.
1.13 Government Grants
Grants and subsidies from the government are
recognized when there is reasonable assurance that
(i) the company will comply with the conditions
attached to them, and (ii) the grant/subsidy
will be received.
When the grant or subsidy relates to revenue, it
is recognized as income on a systematic basis in
the statement of profit and loss over the periods
necessary to match them with the related costs,
which they are intended to compensate. Where
the grant relates to an asset, it is recognized
as deferred income and transfer to income in
equal amounts over the expected useful life of
the related asset.
Where the company receives non-monetary
grants, the asset is accounted for on the basis
of its acquisition cost. In case a non-monetary
asset is given free of cost, it is recognized at a
nominal value.
1.14 Dividends
Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of
the reporting period but not distributed at the end of
the reporting period.
1.15 Cash and Cash Equivalents
For the purpose of presentation in the Statement of
Cash Flows, cash and cash equivalents includes cash
on hand, balance with banks.
1.16 Employee benefits
Employee benefits include salaries, wages, contribution
to provident fund, gratuity, leave encashment towards
un-availed leave, compensated absences, and other
terminal benefits.
(i) Gratuity
Payment for present liability of future payment
of gratuity is being made to approved gratuity
fund, which fully covers the same under Cash
Accumulation Policy and Debt fund of the Life
Insurance Corporation of India (LIC). However, any
deficit in plan assets managed by LIC as compared
to the liability based on an independent actuarial
valuation is recognised as a liability.
The liability or asset recognised in the Balance
Sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using
the projected unit credit method in conformity
with the principles and manner of computation
specified in Ind AS 19.
Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets (excluding amounts included in
net interest on the net defined benefit liability),
are recognised immediately in the Balance Sheet
with a corresponding debit or credit to retained
earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to
profit or loss in subsequent periods.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense
in the Statement of Profit and Loss.
(ii) Provident fund contributions are made to
Company's Provident Fund . The contributions
are accounted for as defined benefit plans and the
contributions are recognised as employee benefit
expense when they are due.
(iii) Defined contribution to superannuation fund is
being made as per the scheme of the Company
and recognised as expense as and when due.
1.17 Power Generation Income
The Company having solar and wind power plants
which is separately shown in Note no. 2 for Property,
Plant and Equipment, primarily for the purpose of
captive consumption of electricity in its manufacturing
and operational processes. The power generated
and consumed internally is netted off against power
and fuel expenses.
1.18 Earnings per Share
Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the period. Earnings
considered in ascertaining the Company’s earnings
per share is the net profit for the period. The weighted
average number of equity shares outstanding during the
period and all periods presented is adjusted for events,
such as bonus shares, other than the conversion of
potential equity shares, that have changed the number
of equity shares outstanding, without a corresponding
change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss for
the period attributable to equity shareholders and the
weighted average number of share outstanding during
the period is adjusted for the effects of all dilutive
potential equity shares.
1.19 Segment Reporting
The company is engaged mainly in the business of
automobile products. These, in the context of Indian
Accounting Standard 108 on Operating Segment,
as specified in the Companies (Indian Accounting
Standards) Rules, 2015, are considered to constitute
one single primary segment. Operating segments
are reported in a manner consistent with the internal
reporting provided to the Core Management Committee
which includes the Managing Director who is the Chief
Operating Decision Maker.
1.20 Business combination under common control
Business combinations involving entities or businesses
under common control are accounted for using the
pooling of interest method. Under pooling of interest
method, the assets and liabilities of the combining
entities or businesses are reflected at their carrying
amounts after making adjustments necessary to
harmonise the accounting policies. The financial
information in the financial statements in respect of
prior periods is restated as if the business combination
had occurred from the beginning of the preceding
period in the financial statements, irrespective of the
actual date of the combination. The identity of the
reserves is preserved in the same form in which they
appeared in the financial statements of the transferor
and the difference, if any, between the amount
recorded as share capital issued plus any additional
consideration in the form of cash or other assets
and the amount of share capital of the transferor is
transferred to capital reserve.
1.21 Recent Pronouncements
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,
the MCA has issued an amendment for removal of
carve-out under Ind AS 1, Presentation of financial
statements relating to classification of liabilities
subject to covenants breach which is applicable with
effect from 1st April 2026. The Company has reviewed
the new pronouncements and based on its evaluation
has determined that it does not have any significant
impact in standalone financial statements.
c. Terms/Rights attached to Equity Shares
The company has only one class of equity shares having a value of ' 5/- per share. Each holder of equity shares is
entitled to one vote per share.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of
the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
19.2 Provision for Warranties
Provision is made for estimated warranty claims in respect of product sold which are still under warranty at the end of the
reporting period . These claims are expected to be settled in the next financial year. Management estimates the provision
based on historical warranty claim information and any recent trends that may suggest future claims could differ from
historical amounts.
19.3 Provision for Expected Credit Loss on Risk Sharing Arrangement
1.0 The company has entered into risk sharing arrangement with Cholamandalam Investment and Finance Co. Limited
(“”Chola””) for sales of vehicle on finance. On account of this arrangement company has agreed to pay non-refundable
delinquency fund (‘Fund’) of ' 2000/- per vehicle to Chola towards each of the vehicle sold under this arrangement,
irrespective of the loan granted on the said vehicles which shall be used for setting off loss arising out of sale of vehicle
repossessed/commission of default by customers.
In event of any vehicle financed under this arrangement is repossessed/surrendered due to non-payment of loan &
default as per loan agreement and on sale of vehicle or on making 100% provisioning towards loan accounts than AAL
agrees to share loss with Chola on the outstanding (principal & instalment) of loan accounts over and above 20% of
such outstanding. Company has recognized the provision based on Ind AS - 109 ‘Financial Instruments’.
2.0 The company has entered into an new risk sharing arrangement with Cholamandalam lnvestment and Finance Co.
Limited (“Chola”) for sales of vehicle on finance. Company has guaranteed vehicles financed by Chola under this
arrangement. Further, as per arrangment with Chola and Dealers, company has received payout on vehicle fnanced by
During the financial year 2024-2025 and 2023-2024 the company was not liable for CSR expenditure. During financial
year 2022-2023 the company has spent ' 22 lakhs in excess of its CSR Liability which can be setoff in current financial
year 2025-2026 in accordance with section 135 of Companies Act, 2013. The excess amount spent has been utilized
for contribution to trusts/associations for eradicating hunger, poverty. Also, in current year the company has spent ' 25
lakhs in towards its CSR Liability and any excess amount spent is entitled to be carried forward in next year in accordance
with section 135 of Companies Act, 2013. The amount spent has been utilized for contribution to trusts/associations for
eradicating hunger, poverty, promoting Education and healthcare.
Note - 40 Employee Benefits
a. Gratuity
Payment for present liability of future payment of gratuity is being made to approved gratuity fund, which fully covers
the same under Cash Accumulation Policy of the Life Insurance Corporation of India (LIC).However, any deficit in plan
assets managed by LIC as compared to the liability on the basis of an independent actuarial valuation is recognised
as a liability.
The liability or asset recognised in the Balance Sheet in respect of defined benefit gratuity plans is the present value of
the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using the projected unit credit method in conformity with the principles
and manner of computation specified in Ind AS 19.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.
Sensitivity Analysis
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method as
applied in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the
methods and assumptions used in preparing the sensitivity analysis from prior years.
b. Provident Fund
Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other
than the contribution payable to the provident fund. The company recognizes contribution payable to the provident
fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the
scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable
to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid
exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset
to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund. Amount
recognised in statement of Profit & Loss is ' 454 lacs (Previous year Rs.419 lacs).
Note - 42 Financial Instruments
a. Capital Management
The Company manages its capital to ensure that the Company will be able to continue as a going concern, while
maximising the return to stakeholders through efficient allocation of capital towards expansion of business and
optimisation of working capital requirements. The Company is not subject to any externally imposed capital
requirements. The management of the Company reviews the capital structure of the Company on regular basis.
Note - 43 Fair Value Measurement
This section explains the judgements and estimates made in determining the fair value of the financial instruments that are
(a) recognized and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company
has classified its financial instruments into the three levels prescribed the Indian accounting standards. Explanation of each
level as follows
Level - 1 Hierarchy includes financial instruments measured using quoted price. This includes mutual funds & listed Equity
shares that have quoted price. The mutual funds are valued using the closing NAV.
Level - 2 The fair value of financial instruments that are not traded in an active market (for example trade bond, over-the-
counter derivatives) is determined using valuation technique which maximise the use of observable market data and rely as
little as possible on entity -specific estimates. If all significant inputs required to fair value of instrument are observable, the
instrument is included in Level-2.
Level - 3 If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3.
During the year under consideration there is no transfer between level 1, level 2 and level 3 hierarchy.
Valuation Techniques used to Determine Fair Value
Mutual funds are valued at the price quoted in active market at the closing of reporting date.
Fair Value of Financial Assets and Liabilities Measured at Amortised Cost :-
The carrying amounts of trade receivables, trade payable, other financial assets/liabilities, loans and cash & cash equivalents
are considered to be the same as their fair values.
Note - 44 Financial Risk Management Objectives and Policies
Financial risk management objectives
The Company’s management monitors and manages the financial risks relating to the operations of the Company. These
risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The
Company’s risk management is done in close co-ordination with the board of directors and focuses on actively securing the
Company’s short, medium and long-term cash flows by minimizing the exposure to volatile financial markets. The Company
does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The
most significant risks to which the Company is exposed are described below
The Board provides guiding principles for overall risk management, as well as policies covering specific areas, such as
foreign exchange risk, credit risk and investment of surplus liquidity. The Company’s risk management is carried out by the
finance department as per the policies approved by the Board of Directors.
Credit Risk
Credit risk arises from cash and cash equivalents, financial assets measured at amortised cost and fair value through profit
or loss and trade receivables.
Credit Risk Management
For other financial assets the Company has an investment policy which allows the Company to invest only with counterparties
having credit rating equal to or above AA and P1 . The company reviews the creditworthiness of these counterparties on an
ongoing basis. Another source of credit risk at the reporting date is from trade receivables as these are typically unsecured.
This credit risk has always been managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates
the expected credit loss on the basis of past data and experience. Expected credit losses of financial assets receivable in
the next 12 months are estimated on the basis of historical data provided the Company has reasonable and supportable
data. On such an assessment the expected losses are nil or negligible, as evidenced in the table below, and hence no further
provision than that already made is considered necessary.
Liquidity Risk
The Company’s principal sources of liquidity are ‘cash and cash equivalents’ and cash flows that are generated from
operations. The Company has no outstanding term borrowings. The Company believes that its working capital is sufficient
to meet its current requirements. Additionally, the Company has sizeable surplus funds invested in fixed income securities or
instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence the Company
does not Derceive any Liauiditv risk.
Market Risk :-
Foreign Currency Risk
The Company operates, in addition to domestic markets, significantly in international markets through its exports and is
therefore exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US$.
Foreign exchange risk arises from highly probable forecast transactions and recognised assets and liabilities denominated
in a currency that is not the Company’s functional currency (').
Note - 46 Purchase of “EV L5” business division from one of the subsidiaries named Atul Greentech Private Limited
The company has purchased one business unit (“EV L5 Division “) from one of its subsidiaries named Atul Greentech Private
Limited (“AGPL”) with effect from 15.01.2026 by way of slump sale transaction. Since both the entities are under common
control from the incorporation of a subsidiary company, the accounting of the said transaction in the Standalone Financials
has been done applying Pooling of Interest method as prescribed in Appendix C of Ind AS 103 ‘Business Combinations’.
Consequently, the previous year / period figures have been restated considering that the transaction has taken place from
the beginning of the preceding period i.e. 01/04/2024 as required under Appendix C of Ind AS 103.
Note - 47 Other Regulatory Notes
1. The title deeds of the immovable properties (other than Common Approach Road As referred to Note No 2 & other
properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are
held in the name of the Company.
2. As per the Company’s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible
assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related
disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is
not applicable.
3 The company has not granted Loans or Advances in the nature of loan to any promoters, directors, KMPs and the
related parties (As per Companies Act, 2013) , which are repayable on demand or without specifying any terms or
period of repayments.
4. No proceedings have been initiated or pending against the company for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
5. The company has sanctioned facilities from banks on the basis of security of current assets. The deviations in Periodic
returns and the books of accounts are given in Note No 10.
6. The company has adhered to debt repayment and interest service obligations on time. Wilful defaulter related
disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is
not applicable.
7. There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act,
2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March 2026.
8. All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies
have been filed. No registration or satisfaction is pending at the year ended 31st March 2026.
9. The company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act,
2013 read with Companies (Restriction on number of Layers) Rules, 2017.
10. No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the
Companies Act, 2013.
11. The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (ultimate beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary
12. The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
13. The company has not operated in any Crypto Currency or Virtual Currency transactions.
14. During the year the company has not disclosed or surrendered, any income other than the income recognised in the
books of accounts in the tax assessments under Income Tax Act, 1961.
Note - 49 Others
Figures relating to corresponding/previous periods have been regrouped/reclassified wherever necessary to conform to
current period figures.
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