Integrated Annual Report 2024-25 364 Notes to the Consolidated Financial Statements | for the year ended 31st March, 2025 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 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 consolidated financial statements of Mahindra & Mahindra Limited and its subsidiaries (‘the Group’ or ‘Mahindra Group’) 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 consolidated financial statements were approved by the Company’s Board of Directors and authorised for issue on 5th May, 2025. (b) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values in accordance with Ind AS. (c) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries. The Group assesses if it has acquired control, joint control or significant influence over an investee based on shareholding, voting power, composition of board, rights under shareholder agreements and other facts and circumstances of each case which involves use of judgment. Subsidiaries are consolidated on a line-by-line basis from the date the control is transferred to the Group. Investment in associates and joint ventures are accounted for using the equity method of accounting, after initially being recognised at cost. These financial statements are prepared by applying uniform accounting policies in use at the Group. Changes in the Group’s interest in subsidiaries that do not result in a loss of control are accounted as equity transactions. In case of loss of control of a subsidiary, the gain or loss is recognised in profit or loss. The fair value of any investment retained at the date when control is lost is regarded as the cost on initial recognition of investment in an associate or jointly controlled entity or as the fair value on initial recognition of investment classified as a financial asset, as the case may be. (d) Measurement of fair values A number of Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group 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). (e) 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(f) and note 2(g). (ii) Provision for product warranties - refer note 2(q) and note 23. (iii) Fair value of financial assets and liabilities and investments - refer note 39(d). (iv) Impairment of tangible and intangible assets including goodwill and investments - refer note 2(h) and note 6. (v) Impairment of financial services receivable - refer note 39 (b)(iii). (vi) Classification of investment as subsidiary, associate or joint venture - refer note 2(c). (vii) Recoverability of deferred tax asset on unabsorbed losses - refer note 2(p) and note 13.
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