The representation of Financial Statements in compliance with the Indian accounting standards for

Maruti Suzuki, Infosys and Interglobe Aviation which belong to Automobile, Information
Technology and Aviation Sector respectively have been studied in detail. Since the companies
are from different sectors the revenue recognition methods and inventories of the three
companies are dissimilar. However there is some similarity between the assets possessed by the
three companies.

Paramete Maruti Suzuki Infosys Interglobe Analysis

r Aviation
Ind-AS 1 The latest Annual Report of The latest Annual Report The latest Annual The representation
the company consists of the of the company Report of the company of the financial
complete set of Financial comprises of the incorporates the statements of the
Statements- balance sheet, complete set of Financial complete set of three companies
profit and loss, change in Statements- balance Financial Statements- are in line with
equity, cash flows and notes. sheet, profit and loss, balance sheet, profit Ind-AS 1.
The financial statements change in equity, cash and loss, change in
have been prepared in flows and notes. The equity, cash flows and
congruence with the going financial statements have notes. . The financial
concern principle and been prepared in statements have been
accrual basis. accordance with prepared in conformity
historical cost, going with the going
concern principle and concern principle and
accrual basis. accrual basis.
Ind-AS 115 Revenue for domestic and Straight-Line basis is Earnings from The revenue
export sales of vehicles, applied to realize bookings are recognition
spare parts and other acknowledged as method of the
revenue for fixed price
accessories is realized when revenue after the three companies
maintenance and customer boards the
the company passes on the depends upon the
percentage of flight. Additionally
control to customers. services they
Revenue collected for the completion method is fees charged for provide.
delivery of technical services employed for cancellation of flight For Maruti it is
contracts that are tickets is also
is acknowledged only after related to the
considered as revenue.
they have been provided to discontinuous in sale of vehicles
Revenue recognition
the customer. Royalty nature. Effective April 1, policy is in conformity whereas for
Earnings and returns from 2018, the Group has with Ind-AS 115. Indigo it mainly
investments are also adopted focuses on the
considered as income for Ind AS 115. passenger service
the company. Effective April and ticket
1, 2018, the Group adopted cancellation
Ind AS 115. Amounts procedure. In
disclosed as revenue are net case of Infosys it
of returns, discounts, sales is about delivering
incentives, goods & service products and
tax. The Group has material services.
uncertain tax positions
including matters under
disputes relating to Income
Taxes. The Company also
has matters under litigation
relating to Excise duty.
Ind-AS 2 Inventories comprise of
vehicles, vehicle spares and
components, loose tools.
Costs are assigned to
individual items of inventory
on the weighted average
cost basis. Inventories are
computed at the lower of
cost and net realizable value.
Ind-AS 16 Property, Plant and
Equipment include freehold
and leasehold land,
buildings, plant and
machinery, furniture,
fixtures, office appliances
etc. Land irrespective of
being freehold or leasehold
are not amortised.
Depreciation is accounted
for all the other components
of PPE. Straight line method
is used to calculate
depreciation on a pro-rata
basis from the month in
which each asset is put to
use to allocate their cost, net
of their residual values, over
their estimated useful lives.
Ind-AS 7 Indirect method has been
used to prepare the
consolidated cash flow
The business of the Inventories consist of There are some
company is providing stores and spares, similarities
software services and it loose tools and in- between the
does not have any flight inventories. inventory items of
physical inventories. So, Costs are allocated to Maruti and
reporting under clause individual items of Indigo. The
3(ii) of the Order is not inventory on the annual reports of
applicable for the weighted average cost the above
basis. Inventories are mentioned
Company.
estimated at the lower companies have
of cost and net specified the sub-
realizable value. categories that
should come
under cost of
inventory such as
cost of purchase,
conversion cost
and transportation
cost.
Property, Plant and Property, Plant and According to Ind-
Equipment include Equipment include AS 16, for the
Freehold and leasehold Owned Aircraft and analysis of
land, Buildings, spare engines, Leased property, plant
Computers,Office Aircrafts, Computers, and equipment
Equipment etc. PPE are Furniture and fixtures, four steps to be
valued at cost less less Ground Support followed are
accumulated depreciation Equipment, etc. recognition of
and impairment. PPE are Provided that PPE,
depreciated over their significant parts of an measurement at
estimated functional lives item of property, plant and after
using the straight line and equipment have recognition,
method. The functional different useful lives, depreciation,
lives and residual values then they are impairment and
of the assets are reviewed accounted for as derecognition.
periodically. separate component of The three
PPE. Depreciation on companies
PPE, excluding owned comply with IND-
aircraft and spare AS and
engine, rotables and derecognise the
non-aircraft assets once they
equipment, leasehold do not reap any
improvements and future economic
leasehold benefits.
improvements -
aircraft, is calculated
on written down value
method. Depreciation
for the above
mentioned items are
computed based on the
straight line method.
Indirect method has been Indirect method has The three
used to prepare the been used to prepare companies use
consolidated cash flow the consolidated cash indirect method to
statement. It complies with
Ind-AS 7.
statement which has been flow statement. prepare the
segregated into consolidated Cash
Operating, Financing and Flow statement.
Investing activities. The Consolidated
Cash Flow
Statement of the
three companies is
segregated into
Operating,
Financing and
Investing
activities. Since
the three
companies belong
to three different
sectors, their
Operating,
Financing and
Investing
activities are
different.