PRAGYA SHRIVASTAVA (C048)

Report Overview

The report assesses how Maruti Suzuki, Infosys and InterGlobe Aviation comply with the
Indian Accounting Standards (Ind-AS), specifically, Ind-AS 1,2,7, 16 and 115.

Ind-AS-1: Presentation of Financial Statements

Ind-AS 1 notifies how general- purpose financial statements need to be presented, related
guidelines, and requirements to maintain fairness and transparency.

• Interglobe Aviation
In its independent Auditor's report, Indigo expresses its compliance in a clear and
unambiguous manner.
Indigo has submitted the full set of financial statements, which include the balance sheet,
statement of profit and loss, statement of cash flows, statement of changes in equity, and
notes, in accordance with the law. These financial statements were created using accrual
accounting and going concern principles.
Appendix 1(A) and (B) shows Indigo’s compliance to Ind -AS 1.

• Infosys
In its Independent Auditor's report, Infosys explicitly and unequivocally states that it has
complied with all regulations.

The whole set of financial statements, including the balance sheet, statement of profit and
loss, statement of cash flows, statement of changes in equity, and notes, have been
presented by Infosys. These financial statements were created using accrual accounting and
going concern principles.
Appendix 2(A) and (B) shows Infosys’ compliance to Ind -AS 1

• Maruti Suzuki
The financial statements of Maruti comply with Ind –AS 1 and are prepared on going concern
and accrual basis apart from certain financial instruments which have been measured at their
fair value.

Maruti has presented all the required financial statements ensuring all line items are
correctly classifies, for example, proper categorization of current and noncurrent assets and
liabilities.

Appendix 3(A) and (B) shows Maruti’s compliance to Ind-AS 1

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Ind-AS 2: Inventories
Ind-AS 2 prescribes how inventories need to be treated for accounting purpose, the cost that
needs to be recognized and carried forward until revenue is recognized.

• InterGlobe Aviation
For Indigo, in-flight inventories, which mostly consist of stores, spare parts, and loose tools,
are valued at the lower of cost or net realizable value (comparison is made on item-by-item
basis). Where appropriate, allowance is made for damaged, outdated, and slow-moving
objects. According to the Standalone Balance Sheet for FY 2020–21, Indigo's inventories were
worth Rs. 3,164 million.

Appendix 1© substantial Indigo’s compliance with Ind-AS 2.

• Infosys
Since Infosys is a software corporation, it has stated that its reporting is irrelevant to it
because it lacks physical inventories.
Appendix 2© substantiates Infosys’ compliance with Ind-AS 2.

• Maruti Suzuki
For Maruti, inventories are valued at lower of cost, basis weighted average method and net
realizable value. The cost of finished goods and work in progress includes raw material, direct
labor etc. and costs incurred in bringing it to the present location and condition. As of FY
2020-21, inventories were valued at Rs. 30,500 million.

Appendix 3© substantiates Maruti’s compliance with Ind-AS 2.

Ind-AS 7: Statement of Cash flows

Ind-AS 7 provides accounting standards for recording changes in cash and cash equivalents
through cash-flow statements which bifurcates all cashflows into operating, investing, and
financing activities.

All three organizations have declared that their cash-flow statements comply with Ind-AS 7
and have reported accordingly (FY 2020-21 And for Infosys, 2021-22):
Cashflow Activity InterGlobe Aviation Infosys (INR Crore) Maruti Suzuki (INR
(INR Million) Million)
Net Cash generated (16204) 22096 88388
in operating
activities
Net cash used in 32457 (3150) (72839)
investing activities
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Net cash used in 17753 (24275) 30041

financing activities
Appendix 1(D), 2(D), 3(D) show compliance to Ind-AS 7 by indigo, Infosys, and Maruti
respectively.

Ind-AS 16: Property, Plant and Equipment

Ind-AS 16 prescribes how property, plant and equipment need to be treated for accounting
purpose, their recognition method, depreciation, and impairment losses that need to be
recorded.

• InterGlobe Aviation
For Indigo, property, plant, and equipment are calculated at lost less accumulated
depreciation and impairment losses. The cost of these items comprises of the purchase price
and any cost directly attributed to bringing the asset to the location and condition so that it
operates as intended. The net carrying value of these items for FY 2020-21 is 7960 million.

Appendix 1€ shows Indigo’s compliance with Ind-AS 16.

• Infosys
For Infosys, property, plant, and equipment are measures at cost less accumulated
depreciation (straight line method) and impairment over their estimated useful lives.
Property, plant, and equipment forms a sizable portion of Infosys’ assets, amounting to Rs
11384 crore as of FY 2021-22.

Appendix 2€ shows Infosys’ compliance with Ind-AS 16.

• Maruti Suzuki
For Maruti Suzuki, property, plant and equipment are valued at cost of
acquisition/construction less depreciation and impairment. As of FY 2020-21. Property, plant,
and equipment are worth 153434 million INR.

Appendix 3€ shows Maruti’s compliance with Ind-AS 16.

Ind-AS 115: Revenue from contracts with customers

Ind-AS 115 prescribes standards for revenue arising from contracts with customers, its
nature, amount, timing, and uncertainty.

• InterGlobe Aviation
Indigo’s revenue recognition policy (majorly from ancillary services) follows Ind-AS 115. The
statement of changes in equity attributed the impact of Ind-AS 115 in FY2020-21 to the
owners of the company.
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Appendix 1(F) shows Indigo’s compliance with Ind-AS 115.

• Infosys
Infosys adopted Ind-AS 115 from 1st April 2022 using cumulative catch-up transition method.
However, the impact was insignificant for the company.

Appendix 2(F) shows Infosys’ compliance with Ind-AS 115.

• Maruti Suzuki
Maruti Suzuki also adopted Ind-AS 115 from 1st April 2021, however, the impact was
insignificant for the company.

Appendix 3(F) shows Maruti Suzuki’s compliance with Ind-AS 115.

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Appendix
Appendix 1: Indigo
A) Independent Auditor’s Report (Compliance with Ind-AS)

B) I) Standalone Balance Sheet (Compliance with Ind-AS 1)

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C) Ii) Standalone statement of Profit and Loss (Compliance with Ind-AS 1)

B) ii) Changes in equity (Compliance with Ind AS-1)

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C)Inventories (Compliance with Ind- AS 2)

D) Standalone Cash Flow Statement (Compliance with Ind-AS 7)

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E) Property, Plant and Equipment (Compliance with Ind-AS 16)

F) Revenue from Contracts with customers (Compliance with Ind-AS 115)

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Appendix 2: Infosys
A) Independent Auditor’s Report (Compliance with Ind-AS)

B) I) Standalone Balance Sheet (Compliance with Ind-AS 1)

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ii) Standalone Statement of Profit and Loss (Compliance with Ind-AS 1)

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iii) Changes in Equity (Compliance with Ind-AS 1)

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C) Standalone Cashflow Statement (Compliance with Ind-AS 7)

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Appendix 3: Maruti Suzuki

A) Independent Auditor’s Report (Compliance with Ind-AS)
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B) I) Standalone Balance Sheet (Compliance with Ind-AS 1)

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ii) Standalone Statement of Profit and Loss (Compliance with Ind-AS 1)

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iii) Changes in Equity (Compliance with Ind-AS 1)

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C)Inventories (Compliance with Ind- AS 2)

D) Standalone Cashflow Statement (Compliance with Ind-AS 7)

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 PRAGYA SHRIVASTAVA (C048)

E) Property, Plant and Equipment (Compliance with Ind-AS 16)