Viaz Tyres Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2. Summary of significant accounting
policies

a) Use of estimates

The preparation of financial statements in
conformity with Indian GAAP requires the
management to make judgments, estimates
and assumptions that affect the reported
amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent
liabilities, at the end of the reporting period.
Although these estimates are based on the
management’s best knowledge of current
events and actions, uncertainty about these
assumptions and estimates could result in
the outcomes requiring a material
adjustment to the carrying amounts of assets
or liabilities in future periods.

b) Property, plant and equipment

Property, plant and equipment, capital work
in progress are stated at cost, net of
accumulated depreciation and accumulated
impairment losses, if any. The cost comprises
purchase price, borrowing costs if
capitalisation criteria are met, directly
attributable cost of bringing the asset to its
working condition for the intended use and
initial estimate of decommissioning,
restoring and similar liabilities. Any trade
discounts and rebates are deducted in

arriving at the purchase price. Such cost
includes the cost of replacing part of the
plant and equipment. When significant parts
of property, plant and equipment are
required to be replaced at intervals, the
Company depreciates them separately based
on their specific useful lives. Likewise, when a
major inspection is performed, its cost is
recognised in the carrying amount of the
plant and equipment as a replacement if the
recognition criteria are satisfied. All other
repair and maintenance costs are recognised
in statement of profit or loss as incurred.

Gains or losses arising from derecognition of
property, plant and equipment are measured
as the difference between the net disposal
proceeds and the carrying amount of the
asset and are recognised in the statement of
profit and loss when the asset is
derecognised.

c) Inventories

Inventories are valued at the lower of cost (on
FIFO / weighted average basis) and the net
realisable value after providing for
obsolescence and other losses, where
considered necessary. Cost includes all
charges in bringing the goods to the point of
sale, including octroi and other levies, transit
insurance and receiving charges. Work-in¬
progress and finished goods include
appropriate proportion of overheads and,
where applicable, Goods and Service Tax.

d) Depreciation on property, plant and
equipment and intangibles

Depreciation on property, plant and
equipment is provided on written down
value basis using the rates arrived at based on
the useful lives specified in the Schedule II to
the Companies Act, 2013. The Company has
used the following useful life to provide
depreciation on its property, plant and
equipment.

Depreciation and amortisation on assets
acquired / disposed of during the year is
provided on pro-rata basis with reference to
the date of acquisition / disposal.

e) Impairment of property, plant and
equipment and intangible assets

The Company assesses at each reporting
date whether there is an indication that an
asset may be impaired. If any indication
exists, or when annual impairment testing for
an asset is required, the Company estimates
the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s
or cash-generating unit’s (CGU) net selling
price and its value in use. The recoverable
amount is determined for an individual asset,
unless the asset does not generate cash
inflows that are largely independent of those
from other assets or groups of assets. Where
the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to
its recoverable amount. In assessing value in
use, the estimated future cash flows are
discounted to their present value using a pre¬
tax discount rate that reflects current market
assessments of the time value of money and

risks specific to the asset. In determining net
selling price, recent market transactions are
taken into account, if available. If no such
transactions can be identified, an
appropriate valuation model is used.

The Company bases its impairment
calculation on detailed budgets and forecast
calculations which are prepared separately
for each of the Company’s cash-generating
units to which the individual assets are
allocated. These budgets and forecast
calculations are generally covering a period
of five years. For longer periods, a long term
growth rate is calculated and applied to
project future cash flows after the fifth year.

Impairment losses of continuing operations
are recognised in the statement of profit and
loss.

An assessment is made at each reporting
date as to whether there is any indication
that previously recognised impairment
losses may no longer exist or may have
decreased. If such indication exists, the
Company estimates the asset’s or cash¬
generating unit’s recoverable amount. A
previously recognised impairment loss is
reversed only if there has been a change in
the assumptions used to determine the
asset’s recoverable amount since the last
impairment loss was recognised. The reversal
is limited so that the carrying amount of the
asset does not exceed its recoverable
amount, nor exceed the carrying amount
that would have been determined, net of
depreciation, had no impairment loss been
recognised for the asset in prior years. Such
reversal is recognised in the statement of
profit and loss.

f) Revenue recognition

Revenue is recognised to the extent that it is
probable that the economic benefits will flow
to the Company and the revenue can be
reliably measured, regardless of when the
payment is being made. Revenue is
measured at the fair value of the
consideration received or receivable, taking
into account contractually defined terms of
payment and excluding taxes or duty. The
Company assess its revenue arrangements
against specific criteria to determine if it is
acting as principle or agent. The Company
has concluded that its is acting as a principal
for all of its revenue arrangements.

g) Earnings per share

Basic earnings per share are calculated by
dividing the net profit or loss for the period
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the period. The weighted
average number of equity shares
outstanding during the period is adjusted for
events such as bonus issue, bonus element in
a rights issue, share split and reverse share
split (consolidation of shares) that have
changed the number of equity shares
outstanding, without a corresponding
change in resources.

For the purpose of calculating diluted
earnings per share, the net profit or loss for
the period attributable to equity
shareholders and the weighted average
number of shares outstanding during the
period are adjusted for the effects of all
dilutive potential equity shares.

h) Foreign currency transactions
Initial recognition

Foreign currency transactions are recorded
in the reporting currency, by applying to the
foreign currency amount the exchange rate
between the reporting currency and the
foreign currency at the date of the
transaction.

Conversion

Foreign currency monetary items are
retranslated using the exchange rate
prevailing at the reporting date. Non¬
monetary items, which are measured in
terms of historical cost denominated in a
foreign currency, are reported using the
exchange rate at the date of the transaction.
Non-monetary items, which are measured at
fair value or other similar valuation
denominated in a foreign currency, are
translated using the exchange rate at the
date when such value was determined.

T reatment of exchange differences

Exchange differences arising on settlement /
restatement of foreign currency monetary
assets and liabilities of the Company are
recognised as income or expense in the
statement of profit and loss.

I) Leases

Where the Company is the lessee

Leases where the lessor effectively retains
substantially all the risks and benefits of
ownership of the leased item, are classified as
operating leases. Operating lease payments

are recognised as an expense in the
Statement of Profit and Loss on a straight¬
line basis over the lease term.

j) Retirement benefits

Retirement benefit in the form of provident
fund is a defined contribution scheme. The
Company has no obligation, other than the
contribution payable to the provident fund.
The Company recognises contribution
payable to the provident fund scheme as an
expenditure, when an employee renders the
related service. If the contribution payable to
the scheme for service received before the
balance sheet date exceeds the contribution
already paid, the deficit payable to the
scheme is recognised as a liability after
deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before
the balance sheet date, then excess is
recognised as an asset to the extent that the
pre payment will lead to, for example, a
reduction in future payment or a cash refund.

The Company operates defined benefit plan
for its employees viz. gratuity. The costs of
providing benefits under these plans are
determined on the basis of actuarial
valuation at each year-end. Separate
actuarial valuation is carried out for each plan
using the projected unit credit method.
Actuarial gains and losses for both defined
benefit plans are recognised in full in the
period in which they occur in the statement
of profit and loss.

Accumulated leave, which is expected to be
utilised within the next 12 months, is treated
as short-term employee benefit.

The Company measures the expected cost of
such absences as the additional amount that
it expects to pay as a result of the unused
entitlement that has accumulated at the
reporting date.

The Company recognises termination
benefit as a liability and an expense when the
Company has a present obligation as a result
of past event, it is probable that an outflow of
resources embodying economic benefits will
be required to settle the obligation and a
reliable estimate can be made of the amount
of the obligation. If the termination benefits
fall due more than 12 months after the
balance sheet date, they are measured at
present value of future cash flows using the
discount rate determined by reference to
market yields at the balance sheet date on
government bonds.

k) Income taxes

Tax expense comprises of current and
deferred tax. Current income tax is measured
at the amount expected to be paid to the tax
authorities in accordance with the Income-
tax Act, 1961 enacted in India. The tax rates
and tax laws used to compute the amount
are those that are enacted or substantively
enacted, at the reporting date.

Deferred income taxes reflect the impact of
timing differences between taxable income
and accounting income originating during
the current year and reversal of timing
differences for the earlier years. Deferred tax
is measured using the tax rates and the tax
laws enacted or substantively enacted at the
reporting date.

Deferred tax liabilities are recognised for all

taxable timing differences. Deferred tax
assets are recognised only to the extent that
there is reasonable certainty that sufficient
future taxable income will be available
against which such deferred tax assets can
be realised. In situation where the Company
has unabsorbed depreciation or carry
forward losses, deferred tax assets are
recognised only if there is virtual certainty
supported by convincing evidence that they
can be realised against future taxable profits.

At each reporting date, the company re¬
assesses unrecognised deferred tax assets. It
recognises unrecognised deferred tax asset
to the extent that it has become reasonably
certain or virtually certain, as the case may
be, that sufficient future taxable income will
be available against which such deferred tax
assets can be realised.

The carrying amount of deferred tax assets
are reviewed at each balance sheet date. The
Company writes-down the carrying amount
of deferred tax asset to the extent that it is no
longer reasonably certain or virtually certain,
as the case may be that sufficient future
taxable income will be available against
which deferred tax asset can be realised. Any
such write down is reversed to the extent that
is becomes reasonably certain or virtually
certain, as the case may be that sufficient
future taxable income will be available.

Deferred tax assets and deferred tax liabilities
are offset, if a legally enforceable right exists
to set off current tax assets against current
tax liabilities and the deferred tax assets and
deferred tax liabilities relate to the taxes on
income levied by same governing taxation
laws.

Minimum alternate tax (MAT) paid in a year is
charged to the statement of profit and loss as
current tax. The Company recognises MAT
credit available as an asset only to the extent
that there is convincing evidence that the
Company will pay normal income tax during
the specified period, i.e., the period for which
MAT credit is allowed to be carried forward. In
the year in which the Company recognises
MAT credit as an asset in accordance with the
Guidance Note on Accounting for Credit
Available in respect of Minimum Alternative
Tax under the Income-tax Act, 1961, the said
asset is created by way of credit to the
statement of profit and loss and shown as
“MAT Credit Entitlement.” The Company
reviews the “MAT credit entitlement” asset at
each reporting date and writes down the
asset to the extent the Company does not
have convincing evidence that it will pay
normal tax during the specified period.

l) Borrowing Cost

Borrowing cost includes interest and
amortisation of ancillary costs incurred in
connection with the arrangement of
borrowings.

Borrowing costs directly attributable to the
acquisition, construction or production of an
asset that necessarily takes a substantial
period of time to get ready for its intended
use or sale are capitalised as part of the cost
of the respective asset. All other borrowing
costs are expensed in the period they occur.

m) Cash and cash equivalents

Cash and cash equivalents for the purposes
of cash flow statement comprises cash at
bank and in hand and short-term

investments with an original maturity of
three months or less.

---

Mar 31, 2024

2.1 Summary of significant accounting policies

a) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b) Property, plant and equipment

Property, plant and equipment, capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of property, plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in statement of profit or loss as incurred.

Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

c) Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, Goods and Service Tax.

d) Depreciation on property, plant and equipment and intangibles

Depreciation on property, plant and equipment is provided on written down value basis using the rates arrived at based on the useful lives specified in the Schedule II to the Companies Act, 2013. The Company has used the following useful life to provide depreciation on its property, plant and equipment.

e) Impairment of property, plant and equipment and intangible assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Company''s cashgenerating units to which the individual assets are allocated. These budgets and forecast calculations are generally covering a period of five years. For longer periods, a long term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses of continuing operations are recognised in the statement of profit and loss.

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset''s or cash-generating unit''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit and loss.

f) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Company assess its revenue arrangements against specific criteria to determine if it is acting as principle or agent. The Company has concluded that its is acting as a principal for all of its revenue arrangements.

g) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

h) Foreign currency transactions Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date ofthe transaction. Non-monetary items, which are measured atfairvalue or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the statement of profit and loss.

i) Leases

Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

j) Retirement benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund.The Company recognises contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund.

The Company operates defined benefit plan for its employees viz. gratuity. The costs of providing benefits under these plans are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for both defined benefit plans are recognised in full in the period in which they occur in the statement of profit and loss.

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Company recognises termination benefit as a liability and an expense when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the termination benefits fall due more than 12 months after the balance sheet date, they are measured at present value of future cash flows using the discount rate determined by reference to market yields at the balance sheet date on government bonds.

k) Income taxes

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the taxauthorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognised for all taxable timing differences. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situation where the Company has unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

At each reporting date, the company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write down is reversed to the extent that is becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognises MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, thesaid asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement." The Company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

l) Borrowing Cost

Borrowing cost includes interest and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

m) Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprises cash at bank and in hand and short-term investments with an original maturity of three months or less.

---

Mar 31, 2023

2.1 Summary of significant accounting policies

a) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b) Property, plant and equipment

Property, plant and equipment, capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of property, plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in statement of profit or loss as incurred.

Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

c) Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, Goods and Service Tax.

d) Depreciation on property, plant and equipment and intangibles

Depreciation on property, plant and equipment is provided on written down value basis using the rates arrived at based on the useful lives specified in the Schedule II to the Companies Act, 2013. The Company has used the following useful life to provide depreciation on its property, plant and equipment.

e) Impairment of property, plant and equipment and intangible assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent ofthose from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Company''s cash-generating units to which the individual assets are allocated. These budgets and forecast calculations are generally covering a period offive years. For longer periods, a long term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses of continuing operations are recognised in the statement of profit and loss.

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset''s or cash-generating unit''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount thatwould have been determined, net of depreciation, had no impairment loss been recognised forthe asset in prioryears. Such reversal is recognised in the statement of profit and loss.

f) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Company assess its revenue arrangements againstspecific criteria to determine if it is acting as principle or agent. The Company has concluded that its is acting as a principal for all of its revenue arrangements.

g) Earnings per share

Basic earnings pershare are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equityshares outstanding during the period. The weighted average number of equityshares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings pershare, the net profit or loss for the period attributable to equityshareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

h) Foreign currency transactions Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Treatment of exchange differences

Exchange differences arising on settlement / restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the statement of profit and loss.

ViazTyres Limited (Formerly known as ViazTubes Private Limited)

Notes to financial statements for the year ended March 31, 2023

(All amounts in Lakhs - Indian Rupee except otherwise stated)

i) Leases

Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

j) Retirement benefits

Retirement benefit in the form of providentfund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the providentfund. The Company recognises contribution payable to the providentfund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre paymentwill lead to, for example, a reduction in future payment or a cash refund.

The Company operates defined benefit plan for its employees viz. gratuity. The costs of providing benefits under these plans are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for both defined benefit plans are recognised in full in the period in which they occur in the statement of profit and loss.

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result ofthe unused entitlement that has accumulated at the reporting date.

The Company recognises termination benefit as a liability and an expense when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the termination benefits fall due more than 12 months after the balance sheet date, they are measured at present value of future cash flows using the discount rate determined by reference to market yields at the balance sheet date on government bonds.

k) Income taxes

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognised for all taxable timing differences. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available againstwhich such deferred tax assets can be realised. In situation where the Company has unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

At each reporting date, the company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax asset to the extent that it has

become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write down is reversed to the extent that is becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognises MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of creditto the statement of profit and loss and shown as "MAT Credit Entitlement." The Company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

l) Borrowing Cost

Borrowing cost includes interest and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get

ready for its intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

m) Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprises cash at bank and in hand and short-term investments with an original maturity of three months or less.