{"id":1812,"date":"2021-06-13T11:32:26","date_gmt":"2021-06-13T11:32:26","guid":{"rendered":"https:\/\/investors.bajajauto.com\/ar21\/?page_id=1812"},"modified":"2021-06-14T07:54:30","modified_gmt":"2021-06-14T07:54:30","slug":"consolidated-summary-of-significant","status":"publish","type":"page","link":"https:\/\/investors.bajajauto.com\/ar21\/consolidated-summary-of-significant\/","title":{"rendered":"consolidated Summary of Significant"},"content":{"rendered":"<div class=\"nolwrap\">\n<div class=\"row hide-for-small\"  id=\"row-463240951\">\n\n\n\t<div id=\"col-1139510854\" class=\"col hide-for-small small-12 large-12\"  >\n\t\t\t\t<div class=\"col-inner\"  >\n\t\t\t\n\t\t\t\n\n\t<div id=\"text-747322988\" class=\"text\">\n\t\t\n\n<h3>1&emsp;Summary of significant accounting policies followed by the Group<\/h3>\n<h4>Basis of preparation<\/h4>\n\t\t\n<style>\n#text-747322988 {\n  color: #005dac;\n}\n#text-747322988 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<p>These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133\nof the Companies Act, 2013 (the \u2018Act\u2019) read together with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time and other relevant provisions of the Act, on an accrual basis.<\/p>\n<p>The financial statements have been prepared on a historical cost basis, except for certain financial assets and financial liabilities (including derivative instruments) that are measured at fair value.<\/p>\n<p>The financial statements are presented in INR, which is also the Company\u2019s functional currency and all values are rounded to the nearest crore (INR 0,000,000), except when otherwise indicated.<\/p>\n<p>All assets and liabilities, other than deferred tax assets and liabilities, have been classified as current or non-current as per the\nCompany\u2019s normal operating cycle and other criteria set out in the Schedule III (Division II) to the Act. Deferred tax assets and\nliabilities are classified as non-current assets and liabilities. Based on the nature of products and the time between the acquisition of\nassets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as 12 months\nfor current and non-current classification of assets and liabilities.<\/p>\n\t<div id=\"gap-143637979\" class=\"gap-element clearfix\" style=\"display:block; height:auto;\">\n\t\t\n<style>\n#gap-143637979 {\n  padding-top: 20px;\n}\n<\/style>\n\t<\/div>\n\t\n\n\t<div id=\"text-1101516591\" class=\"text\">\n\t\t\n\n<h4>Significant accounting policies<\/h4>\n\t\t\n<style>\n#text-1101516591 {\n  color: #005dac;\n}\n#text-1101516591 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<p>This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.<\/p>\n\t<div id=\"gap-1900945963\" class=\"gap-element clearfix\" style=\"display:block; height:auto;\">\n\t\t\n<style>\n#gap-1900945963 {\n  padding-top: 20px;\n}\n<\/style>\n\t<\/div>\n\t\n\n\t<div id=\"text-1960471926\" class=\"text\">\n\t\t\n\n<h4>1&emsp;Basis of consolidation<\/h4>\n\t\t\n<style>\n#text-1960471926 {\n  color: #005dac;\n}\n#text-1960471926 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<p>The consolidated financial statements incorporate the financial statements of the Company and all its subsidiaries, being the entities\nthat it controls. Control is evidenced where the Group has power over the investee or is exposed, or has rights, to variable returns\nfrom its involvement with the investee and has the ability to affect those returns through its power over the investee. Power is\ndemonstrated through existing rights that give the ability to direct relevant activities, which significantly affect the entity returns.\nThe financial statements of subsidiaries are prepared for the same reporting year as the parent company. Where necessary,\nadjustments are made to the financial statements of subsidiaries to align the accounting policies in line with accounting policies of\nthe Group. For non-wholly owned subsidiaries, a share of the profit\/loss for the financial year and net assets is attributed to the non\u0002controlling interests as shown in the consolidated Statement of Profit and Loss and consolidated Balance Sheet. For acquisitions\nof additional interests in subsidiaries, where there is no change in control, the Group recognises a reduction to the non-controlling\ninterest of the respective subsidiary with the difference between this figure and the cash paid, inclusive of transaction fees, being recognised in equity. In addition, upon dilution of controlling interests the difference between the cash received from sale or listing of the subsidiary shares and the increase to non-controlling interest is also recognised in equity. The financial statements of\nsubsidiaries acquired or disposed off during the year are included in the consolidated Statement of Profit and Loss from the effective\ndate of acquisition or up to the effective date of disposal, as appropriate. Intragroup balances and transactions, and any unrealised\nincome and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated unless costs cannot be recovered. The financial statements of Bajaj Auto (Thailand) Ltd. are prepared with a three months\u2019 time lag for consolidation into the Group financial statements.<\/p>\n\t<div id=\"gap-752011999\" class=\"gap-element clearfix\" style=\"display:block; height:auto;\">\n\t\t\n<style>\n#gap-752011999 {\n  padding-top: 20px;\n}\n<\/style>\n\t<\/div>\n\t\n\n\t<div id=\"text-4125125124\" class=\"text\">\n\t\t\n\n<h4>2&emsp; Investment in associates<\/h4>\n\t\t\n<style>\n#text-4125125124 {\n  color: #005dac;\n}\n#text-4125125124 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<p>Investments in associates are accounted for using the equity method. An associate is an entity over which the Group is in a\nposition to exercise significant influence over operating and financial policies. The considerations made in determining whether\nsignificant influence is being exercised are similar to those necessary to determine control over the subsidiaries. Goodwill arising\non the acquisition of associates is included in the carrying value of investments in associate.<\/p>\n<p>The Group\u2019s investments in its associate are accounted for using the equity method. Under the equity method, the investment in\nan associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group\u2019s\nshare of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying\namount of the investment and is not tested for impairment individually.<\/p>\n<p>The Statement of Profit and Loss reflects the Group\u2019s share of the results of operations of the associate. Any change in OCI of\nthose investees is presented as part of the Group\u2019s OCI. In addition, when there has been a change recognised directly in the\nequity of the associate, the Group recognises its share of any changes, when applicable, in the Statement of Changes in Equity.\nUnrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the\ninterest in the associate.<\/p>\n<p>If an entity\u2019s share of losses of an associate equals or exceeds its interest in the associate (which includes any long term interest\nthat, in substance, form part of the Group\u2019s net investment in the associate), the entity discontinues recognising its share of\nfurther losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or\nmade payments on behalf of the associate. If the associate subsequently reports profits, the entity resumes recognising its share\nof those profits only after its share of the profits equals the share of losses not recognised.<\/p>\n<p>The aggregate of the Group\u2019s share of profit or loss of an associate is shown on the face of the Statement of Profit and Loss.<\/p>\n<p>The financial statements of the associate are prepared with a three months\u2019 time lag for consolidation into the Group financial\nstatements. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. The Group\nhas not identified any material adjustments during the year; in regard to the alignment of accounting policies.<\/p>\n<p>After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its\ninvestment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment\nin the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between\nthe recoverable amount of the associate and its carrying value, and then recognises the loss in the Statement of Profit and Loss.<\/p>\n<\/p>\n<p>Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair\nvalue. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the\nretained investment and proceeds from disposal is recognised in Statement of Profit and Loss.<\/p>\n\t<div id=\"gap-1683831453\" class=\"gap-element clearfix\" style=\"display:block; height:auto;\">\n\t\t\n<style>\n#gap-1683831453 {\n  padding-top: 20px;\n}\n<\/style>\n\t<\/div>\n\t\n\n\t<div id=\"text-3869552534\" class=\"text\">\n\t\t\n\n<h4>3) &emsp; Foreign currencies<\/h4>\n\t\t\n<style>\n#text-3869552534 {\n  color: #005dac;\n}\n#text-3869552534 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<p>The Group\u2019s consolidated financial statements are presented in INR, which is also the parent company\u2019s functional currency. For each entity the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The Group uses the direct method of consolidation and on disposal of a foreignoperation the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method.<\/p>\n\t<div id=\"text-813947107\" class=\"text\">\n\t\t\n\n<h4>Transactions and balances<\/h4>\n\t\t\n<style>\n#text-813947107 {\n  color: #005dac;\n}\n#text-813947107 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<p>Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. However, for practical reasons, the group uses an average rate if the average approximates the actual rate at the date of the transaction<\/p>\n<p>Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.<\/p>\n<p>Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss with the exception of the following:<\/p>\n<p>Exchange differences arising on monetary items that forms part of a reporting entity\u2019s net investment in a foreign operation are recognised in Statement of Profit and Loss in the separate financial statements of the reporting entity or the individual financial statements of the foreign operation, as appropriate. In the financial statements that include the foreign operation and the\nreporting entity (e.g., consolidated financial statements when the foreign operation is a subsidiary), such exchange differences\nare recognised initially in Statement of Other Comprehensive Income (\u2018OCI\u2019). These exchange differences are reclassified from\nequity to profit or loss on disposal of the net investment.<\/p>\n<p>Tax charges and credits attributable to exchange differences on those monetary items are also recorded in OCI.<\/p>\n<p>Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate\nat the date of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using\nthe exchange rate at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items\nmeasured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of item (i.e. translation\ndifferences on items whose fair value gain or loss is recognised in OCI or Statement of Profit and Loss are also recognised in OCI\nor Statement of Profit and Loss, respectively).<\/p>\n\t<div id=\"text-808167958\" class=\"text\">\n\t\t\n\n<h4>Group companies<\/h4>\n\t\t\n<style>\n#text-808167958 {\n  color: #005dac;\n}\n#text-808167958 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<p>On consolidation, the assets and liabilities of foreign operations are translated into INR at the rate of exchange prevailing\nat the reporting date and their Statement of Profit and Loss are translated at exchange rates prevailing at the dates of the\ntransactions. For practical reasons, the Group uses an average rate to translate income and expense items, if the average rate\napproximates the exchange rate at the date of the transactions. The exchange differences arising on translation for consolidation\nare recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is\nrecognised in Statement of Profit and Loss.<\/p>\n<p>Any goodwill arising in the acquisition\/business combination of a foreign operation and any fair value adjustment to the carrying\namount of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and\ntranslated at the spot rate of exchange at the reporting date.<\/p>\n<p>Gain or loss on a subsequent disposal of any foreign operation excludes translation differences that arose before the date oftransition but includes only translation differences arising after the transition date.<\/p>\n\t<div id=\"text-1709490242\" class=\"text\">\n\t\t\n\n<h4>4&emsp; Taxation<\/h4>\n\t\t\n<style>\n#text-1709490242 {\n  color: #005dac;\n}\n#text-1709490242 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<ol>\n<li>Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation\nauthorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at\nthe reporting date in the countries where the Group operates and generates taxable income.<\/li>\n<li>Current income tax relating to items recognised outside Statement of Profit and Loss is recognised outside Statement of\nProfit and Loss (either in OCI or in equity). Current tax items are recognised in correlation to the underlying transaction either\nin OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.<\/li>\n<li>Deferred tax is provided using the liability method on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred tax\nasset is realised or the deferred tax liability is settled.\nDeferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that\nfuture taxable amounts will be available to utilise those temporary differences.<\/li>\n<li>Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets\nagainst current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.<\/li>\n\t<div id=\"text-1266996268\" class=\"text\">\n\t\t\n\n<h4>5&emsp;Other significant accounting policies<\/h4>\n\t\t\n<style>\n#text-1266996268 {\n  color: #005dac;\n}\n#text-1266996268 > * {\n  color: #005dac;\n}\n<\/style>\n\t<\/div>\n\t\n<p>Other significant accounting policies followed by the Group are exactly similar to the significant accounting policies of the parent, Bajaj Auto Ltd.; and hence have not been reproduced here. Refer note 1 of standalone financial statements of Bajaj Auto Ltd. for the year ended 31 March 2021 for details in regard to other significant accounting policies.<\/p>\n\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\n\n<\/div>\n<div class=\"row show-for-small\"  id=\"row-997902889\">\n\n\n\t<div id=\"col-1261573926\" class=\"col small-12 large-12\"  >\n\t\t\t\t<div class=\"col-inner\"  >\n\t\t\t\n\t\t\t\n\n\t<div id=\"text-1156549726\" class=\"text\">\n\t\t\n\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/1-summary-of-significant-accounting-policies-followed-by-the-company\/\">1.&emsp;Summary of significant accounting<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/2-property-plant-equipment\/\">2.&emsp;Property, plant and equipment<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/3-investment-property\/\">3.&emsp;Investment property<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/4-intangible-assets\/\">4.&emsp;Intangible assets<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/5-investments\/\">5.&emsp;Investments<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/6-loan\/\">6.&emsp;Loans<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/7-other-financial-assets\/\">7.&emsp;Other financial assets<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/8-other-assets\/\">8.&emsp;Other assets<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/9-inventories\/\">9.&emsp;Inventories<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/10-trade-receivables\/\">10.&emsp;Trade receivables<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/11-cash-and-cash-equivalents\/\">11.&emsp;Cash and cash equivalents<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/12-other-bank-balances\/\">12.&emsp;Other bank balances<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/13-equity-share-capital\/\">13.&emsp;Equity share capital<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/14-other-equity\/\">14.&emsp;Other equity<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/15-sales-tax-deferral\/\">15.&emsp;Sales tax deferral<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/16-provisions\/\">16.&emsp;Provisions<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/17-deferred-tax-liabilities-net\/\">17.&emsp;Deferred tax liabilities (net)<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/18-other-non-current-liabilities\/\">18.&emsp;Other non-current liabilities<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/19-other-financial-liabilities\/\">19.&emsp;Other financial liabilities<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/20-other-current-liabilities\/\">20.&emsp;Other current liabilities<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/21-revenue-from-operations\/\">21.&emsp;Revenue from operations<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/22-other-income\/\">22.&emsp;Other income<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/23-changes-in-inventories\/\">23.&emsp;Changes in inventories<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/24-employee-benefits-expense\/\">24.&emsp;Employee benefits expense<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/25-finance-costs\/\">25.&emsp;Finance costs<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/26-depreciation-and-amortization-expense\/\">26.&emsp;Depreciation and amortisation expense<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/27-other-expenses\/\">27.&emsp;Other expenses<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/28-exceptional-items\/\">28.&emsp;Exceptional items<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/29-tax-expense\/\">29.&emsp;Tax expense<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/30-earnings-per-share-eps\/\">30.&emsp;Earnings Per Share (EPS)<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/31-fair-value-measurement\/\">31.&emsp;Fair value measurement<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/32-financial-risk-management\/\">32.&emsp;Financial risk management<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/33-capital-management\/\">33.&emsp;Capital management<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/34-contingent-liabilities\/\">34.&emsp;Contingent liabilities<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/35-capital-commitments\/\">35.&emsp;Capital commitments<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/36-segment-information\/\">36.&emsp;Segment information<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/37-employee-benefits\/\">37.&emsp;Employee benefits<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/38-disclosure-of-transactions\/\">38.&emsp;Disclosure of transactions with related parties as required by theIndian Accounting Standard 24<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/39-lease\/\">39.&emsp;Lease<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/40-expenditure-incurred-on-research-and-development\/\">40.&emsp;Expenditure incurred on Research and Development<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/41-share-based-payments\/\">41.&emsp;Share based payments (Employee stock option plans)<\/a><\/p>\n<p><a href=\"https:\/\/investors.bajajauto.com\/ar21\/42-estimation-of-uncertainties-relating-to-covid-19\/\">42 &#8211; 44.&emsp;Estimation of uncertainties relating to COVID-19<\/a><\/p>\n\t\t\n<style>\n#text-1156549726 {\n  font-size: 0.9rem;\n}\n<\/style>\n\t<\/div>\n\t\n\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\n\n<\/div>\n\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1812","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/investors.bajajauto.com\/ar21\/wp-json\/wp\/v2\/pages\/1812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investors.bajajauto.com\/ar21\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investors.bajajauto.com\/ar21\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investors.bajajauto.com\/ar21\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investors.bajajauto.com\/ar21\/wp-json\/wp\/v2\/comments?post=1812"}],"version-history":[{"count":2,"href":"https:\/\/investors.bajajauto.com\/ar21\/wp-json\/wp\/v2\/pages\/1812\/revisions"}],"predecessor-version":[{"id":1950,"href":"https:\/\/investors.bajajauto.com\/ar21\/wp-json\/wp\/v2\/pages\/1812\/revisions\/1950"}],"wp:attachment":[{"href":"https:\/\/investors.bajajauto.com\/ar21\/wp-json\/wp\/v2\/media?parent=1812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}