MAHINDRA & MAHINDRA LTD. Standalone Accounts 289 1. General Information Mahindra & Mahindra Limited (‘the Company’) is a limited company incorporated in India. The address of its registered office and principal activities of the Company are disclosed in the introduction to the Annual Report. The Ordinary (Equity) shares of the Company are listed on the National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”) in India. The Global Depository Receipts (GDRs) of the Company are listed on the Luxembourg Stock Exchange and are also admitted for trading on International Order Book (IOB) of the London Stock Exchange. The Company’s privately placed Non-Convertible Debentures (NCDs) are listed on the Debt Segment of BSE. 2. Material accounting policy information (a) Statement of compliance and basis of preparation and presentation These standalone or separate financial statements of the Company have been prepared in accordance with Indian Accounting Standards as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under Section 133 of the Companies Act, 2013 (the ‘Act’) and other relevant provisions of the Act. These standalone or separate financial statements were approved by the Company’s Board of Directors and authorised for issue on 5th May, 2025. (b) Basis of measurement The standalone financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair values in accordance with Ind AS. (c) Measurement of fair values A number of Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has established policies and procedures with respect to the measurement of fair values. 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 and liabilities; — Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; — Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). (d) Use of estimates and judgments 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, income and expenses at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed at each Balance Sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected. Key sources of estimation uncertainty, critical judgments and assumptions at the date of financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in respect of the below: (i) Useful lives of property, plant and equipment and other intangible assets - refer note 2(e) and 2(f). (ii) Provision for product warranties - refer note 2(q) and note 20. (iii) Fair value of financial assets, liabilities and investments - refer note 39(f). (iv) Impairment of tangible and intangible assets including investments - refer note 2(g). (v) Classification of investment as subsidiary, associate or joint venture - refer note 2(j). (vi) Recoverability of deferred tax asset on unabsorbed losses - refer note 2(p) and note 21. (e) Property, plant and equipment Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment, if any. Cost includes financing cost relating to borrowed funds attributable to the construction or acquisition of qualifying tangible assets upto the date the assets are ready for use. Depreciation is provided on straight-line basis for property, plant and equipment so as to expense the depreciable amount, i.e. the cost less estimated residual value, over its estimated useful lives. The estimated useful lives and residual values are reviewed annually and the effect of any changes in estimate is accounted for on a prospective basis. When an asset is scrapped or otherwise disposed off, the cost and related accumulated depreciation are removed from the books of account and resultant profit or loss, if any, is reflected in the Statement of Profit and Loss. Notes to the Standalone Financial Statements | for the year ended 31st March, 2025
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