Maruti IR 2021-22
Maruti IR 2021-22
Maruti IR 2021-22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in ` million, unless otherwise stated) (All amounts in ` million, unless otherwise stated)
tax assessments. A tax assessment can involve complex uncertainties in the global economic conditions because of 2.7 Other Income - the amount of initial measurement of liability
issues, which can only be resolved over extended time this pandemic, the Group, as at the date of approval of these Dividend income from investments is recognised when
periods. financial statements has used internal and external sources the shareholders' right to receive payment has been - any lease payments made at or before the
of information on the expected future performance of the established. commencement date less the incentives received
Other litigations: Litigations often involve complex legal/ Group. The Group has performed sensitivity analysis on the
regulatory issues and are connected with a high degree assumptions used and based on current estimates expects Interest income from a financial asset is recognised when it - any initial direct costs, and
of uncertainty. Accordingly, the assessment of whether an the carrying amount of these assets will be recovered. The is probable that the economic benefits will flow to the Group
obligation exists on the balance sheet date as a result of impact of COVID-19 on the Group's financial statements and the amount of income can be measured reliably. - restoration costs
an event in the past, and whether a future cash outflow is may differ from that estimated as at the date of approval of
likely and the obligation can be reliably estimated, largely these financial statements 2.8 Leases They are subsequently measured at cost less accumulated
depends on estimations by the management. 2.8.1 The Group as Lessor depreciation and impairment losses.
2.6 Revenue Recognition Leases are classified as finance leases whenever the terms
Note 18 : Provision for Warranty and Product Recall Revenue is measured at the fair value of the consideration of the lease transfer substantially all the risks and rewards Right-of-use asset are depreciated over the shorter of
The Group creates provision based on historical warranty received or receivable. Amounts disclosed as revenue are of ownership to the lessee. All other leases are classified as asset's useful life and the lease term on a straight-line
claim experience. In addition, assumptions on the amounts net of returns, discounts, sales incentives, goods & service operating leases. basis. Right of use assets are evaluated for recoverability
of potential costs are also included while creating the tax and value added taxes. whenever events or changes in circumstances indicate that
provisions. The provisions are regularly adjusted to reflect Amounts due from lessees under finance leases are their carrying amounts may not be recoverable.
new information. The Group recognises revenue when the amount of revenue recognised as receivables at the amount of the Group's net
and its related cost can be reliably measured and it is investment in the leases. Finance lease income is allocated Lease liabilities measured at amortised cost include the net
Note 4 : Property, Plant and Equipment - Useful probable that future economic benefits will flow to the entity to accounting periods so as to reflect a constant periodic present value of the following lease payments:
Economic Life and degree of managerial involvement associated with rate of return on the Group's net investment outstanding in
Property, plant and equipment represent a significant ownership or effective control have been met for each of the respect of the leases. When the Group is an intermediate - fixed payments (including in-substance fixed
proportion of the asset base of the Group. The charge in Group's activities as described below. The Group bases its lessor, it accounts for its interests in the head lease and the payments), less any lease incentives receivable
respect of periodic depreciation is derived after determining estimates on historical results, taking into consideration the sublease separately. The sublease is classified as a finance
an estimate of an asset’s expected useful life and the type of customer, the type of transactions and the specifics or operating lease by reference to the right of-use asset - variable lease payment that are based on an index or
expected residual value at the end of its life. The useful of each arrangement. arising from the head lease. a rate, initially measured using the index or rate as at
lives and residual values of Group's assets are determined the commencement date
by the management at the time the asset is acquired and 2.6.1 Sale of Goods Rental income from operating leases is recognised on a
reviewed periodically, including at each financial year end. Revenue is recognised for domestic and export sales of straight-line basis over the term of the relevant lease. Where - amounts expected to be payable by the Group under
vehicles, spare parts, and accessories when the Group the rentals are structured solely to increase in line with residual value guarantees
Note 37 : Leases transfers control over such products to the customer on expected general inflation to compensate for the Group's
Ind AS 116 requires lessees to determine the lease term as the dispatch from the factory and the port respectively. expected inflationary cost increases, such increases are - the exercise price of purchase option if the Group is
non-cancellable period of a lease adjusted with any option recognised in the period in which such benefits accrue. reasonably certain to exercise that option, and
to extend or terminate the lease, if the use of such option 2.6.2 Income from Services
is reasonably certain. The Group makes an assessment Revenue from engineering services are recognised The Group did not make any adjustments to the accounting - payments of penalties for terminating the lease, if the
on the expected lease term on a lease-by-lease basis. In as the related ser vices are per formed. Revenue for assets held as a lessor as a result of adopting the new lease term reflects the Group exercising the option.
evaluating the lease term, the Group considers factors such from extended warranty is recognised on time lease standard.
as any significant lease hold improvements undertaken over proportion basis. Income from other services are Lease payments to be made under reasonably certain
the lease term, costs relating to the termination of the lease accounted over the period of rendering of services. 2.8.2 The Group as Lessee extension options are also included in the measurement
and the importance of the underlying asset to the Group’s Invoicing in excess of revenues are classified as contract The Group assesses whether a contract contains a lease, of the liability. The lease payments are discounted using
operations taking into account the location of the underlying liabilities. Contract liabilities pertains to advance at inception of a contract. At the date of commencement of the rate interest implicit in the lease. If that rate cannot be
asset and the availability of suitable alternatives. The lease consideration received towards sale of extended warranty the lease, the Group recognises a 'right-of-use' asset and a readily determined, which is generally the case for leases in
term in future periods is reassessed to ensure that the lease and other services by the Group. corresponding liability for all lease arrangements in which it the Group, the lessee's incremental borrowing rate is used,
term reflects the current economic circumstances. is a lessee, except for leases with a term of twelve months being the rate that the individual lessee would have to pay
2.6.3 Income from Royalty or less (short-term leases) and low value leases. For these to borrow the funds necessary to obtain an asset of similar
Estimation of Uncertainties Relating to the Global Revenue from royalty is recognised on an accrual short-term and low value leases, the Group recognizes the value to the right-of-use asset in the similar economic
Health Pandemic from COVID-19: basis in accordance with the substance of the relevant lease payments as an operating expense on a straight-line environment with similar terms, security and conditions.
The Group has considered the possible effects that may arrangements. basis over the term of the lease
result from the pandemic relating to COVID-19 on the carrying The Group accounts for each lease component within the
amounts of property, plant and equipment, investments, Right-of-use asset are measured at cost comprising the contract as a lease separately from non-lease components
inventories, receivables and other current assets. In following: of the contract in accordance with Ind AS 116 and allocates
developing the assumptions relating to the possible future the consideration in the contract to each lease component
334 Maruti Suzuki India Limited
Annual Integrated Report 2021-22
Corporate
Overview
Value Creation
Approach
Sustainability
Performance
Statutory
Reports
Financial
Statements 335
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in ` million, unless otherwise stated) (All amounts in ` million, unless otherwise stated)
Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of intimation Year ended Year ended
31.03.2022 31.03.2021
received from the “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.
Sale of products
Trade Payables ageing schedule as at March 31, 2022
Vehicles 737,912 590,059
Outstanding for following periods from due date of payment Spare parts / dies and moulds / components 100,086 75,659
Particulars Less than 1-2 2-3 More than 837,998 665,718
Not Due Total
1 years years years 3 years
Other operating revenues
MSME 1,000 84 2 - 1 1,087 Income from services 13,690 12,171
Others 59,648 2,084 16 13 106 61,867 Sale of scrap 6,419 4,208
Disputed dues - Others - - - 1 4 5 Recovery of freight & service charges 21,475 19,096
Unbilled 34,693 - - - - 34,693 Rental Income 437 405
Total 95,341 2,168 18 14 111 97,652 Others 3,279 2,122
45,300 38,002
883,298 703,720
Revenue from contract with customers is disaggregated by geographical region and presented. (Refer to note 31)
336 Maruti Suzuki India Limited
Annual Integrated Report 2021-22
Corporate
Overview
Value Creation
Approach
Sustainability
Performance
Statutory
Reports
Financial
Statements 337
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in ` million, unless otherwise stated) (All amounts in ` million, unless otherwise stated)
Reconciliation of revenue recognised with contract price: 25.2 Changes in inventories of finished goods, work-in-progress and stock-in-trade
Discount & Incentives as per contract/scheme bulletins (32,261) (34,927) Finished goods manufactured