Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally
recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilized. Such deferred tax assets and
liabilities are not recognized if the temporary difference arises from the initial recognition, other than in a business
combination, of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting
profit.

Deferred tax asset is recognized for the carry forward of unused tax losses and unused tax credits to the extent that
it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits
can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset
to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realised, based on tax rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which we expect, at the end of the reporting period, to recover or settle the carrying amount of its assets
and liabilities.

Segment reporting

Our reportable segments have been identified based on end consumption of the products sold or services rendered.
The reportable segments are currently as follows:

. Automotive - Powertrain and Others: This segment develops, manufactures, sells its goods and services
of power train and other products to manufacturers of commercial vehicles, farm equipment,
construction/mining equipment and passenger vehicles.

. Automotive - Aluminium Products: This segment manufactures and sells its goods and services of
aluminium automotive components to the manufacturers of two wheelers, passenger vehicles and
commercial vehicles.

. Industrial and Engineering: This segment develops, manufactures, sells its goods and services such as
storage solutions as well as castings, gears, material handling equipment, special purpose machines and
other general engineering products to various end user industries.

Changes in Accounting Policies

Ind AS 116 - leases replaced the erstwhile accounting standard on lease accounting Ind AS 17 with effect from
April 1, 2019. To ensure consistency of accounting policies in the Restated Financial Information, the Company
has considered adoption of this standard with effect from April 1, 2017. The impact of Ind AS 116 has been
adjusted in the respective years.

Summary of Results of Operations

The following is a summary of our profit and loss account as per our Restated Financial Information for the periods
indicated:

 

Particulars Nine months ended Fiscal 2020 Fiscal 2019 Fiscal 2018
December 31, 2020
in? % of in? % of int % of ing % of
million total million total million total million total
income income income income
Income

 

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