2.21 Provisions and contingencies

Provisions are recognized when the Company has a
present obligation (legal / constructive) as a result of past
event, it is probable that the Company will be required to
settle the obligation, and a reliable estimate can be made
of the amount of the obligation.

The amount recognized as a provision is the best estimate of
the consideration required to settle the present obligation
at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When
a provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the
time value of money is material).

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognized as an asset if it is
virtually certain that reimbursement will be received and
the amount of receivable can be measured reliably.

Product warranty cost:

The estimated liability for product warranties is recorded
when products are sold. These estimates are established using
historical information on the nature, frequency and average
cost of warranty claims and management estimates regarding
possible future incidence based on corrective actions on
product failures. The timing of outflows will vary as and when
warranty claim will arise, being typically upto three years.

The Company also has back-to-back contractual
arrangement with its suppliers in the event that a vehicle
fault is proven to be a supplier's fault. Estimates are made
of the expected reimbursement claim based upon historical
levels of recoveries from supplier, adjusted for inflation and

applied to the population of vehicles under warranty as on
Balance Sheet date. Expected recoveries towards warranty
cost from the vendors are estimated and accounted for as
receivable when it is certain that such recoveries will be
received if the Company incurs the warranty cost. Supplier
reimbursements are recognized as separate asset.

Contingent liability:

Contingent liability is disclosed for:

♦ Possible obligations which will be confirmed only
by future events not wholly within the control of the
Company or

♦ Present obligations arising from past events where it
is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.

Contingent assets:

Contingent assets are not recognized in the standalone
financial statement since this may result in the recognition
of income that may never be realized.

Provisions, contingent liabilities and contingent assets
are reviewed at each Balance Sheet date.

2.22 Investments in wholly owned subsidiaries

Investments in wholly owned subsidiaries are measured
at cost as per Ind AS 27 - Separate Financial Statements.

2.23 Segment reporting

Operating segment reflect the Company's management
structure and the way the financial information is regularly
reviewed by the Board of Directors (the Company's Chief
Operating Decision Maker (CODM)). The CODM considers
the business from both business and product perspective
based on the dominant source, nature of risks and returns
and the internal organization and management structure.
The operating segments are the segments for which
separate financial information is available and for which
operating profit / (loss) amounts are evaluated regularly
by the Board of Directors in deciding how to allocate
resources and in assessing performance.

Segment revenue, segment expenses, segment assets and
segment liabilities have been identified to the segment on
the basis of their relationship to the operating activities
of the segment.

Revenue, expenses, assets and liabilities which relate to
the Company as a whole and are not allocable to segments
on reasonable basis have been included under unallocated
revenue / expenses / assets / liabilities.

2.24 Insurance claims

Insurance claims are recognized for on the basis of claims
admitted / expected to be admitted and to the extent
there is no uncertainty in receiving the claims.

2.25 Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.

Interest income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalization.

All other borrowing costs are recognized in profit or loss
in the period in which they are incurred.

2.26 Current / Non-current classification

The Company classifies an asset as current asset when:

♦ it expects to realise the asset, or intends to sell or
consume it, in its normal operating cycle;

♦ it holds the asset primarily for the purpose of trading;

♦ it expects to realise the asset within twelve months
after the reporting period; or

♦ the asset is cash or a cash equivalent unless the asset is
restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when -

♦ it expects to realise the asset, or intends to sell or
consume it, in its normal operating cycle;

♦ it holds the liability primarily for the purpose
of trading;

♦ the liability is due to be settled within twelve months
after the reporting period; or

♦ it does not have an unconditional right to defer
settlement of the liability for at least twelve months after
the reporting period. Terms of a liability that could, at the
option of the counterparty, result in its settlement by the
issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

Based on the nature of products / activities of the Company and
the normal time between acquisition of assets and their realization
in cash or cash equivalents, the Company has determined its
operating cycle as 12 months for the purpose of classification
of its assets and liabilities as current and non-current.

3 Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) has not notified any
new standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as
issued from time to time which are applicable effective
April 1, 2025.

The amount disclosed above includes withholding taxes amounting to Nil for March 31, 2025, ? 16,173.63 million for
March 31, 2024.

The Board of Directors have proposed a final dividend of ? 21 per share (nominal value of ? 10 per share) for the FY 2024¬
25. The dividend is subject to the approval of shareholders at the annual general meeting. The total expected cash outflow
is ? 17,063.36 million including withholding tax.

D. Changes to share capital

The Board of Directors of the Company, at its meeting held on May 17, 2024 had approved the sub division of the existing
authorized share capital of the Company from 1,40,00,000 equity shares of ? 1000 each into 1,40,00,00,000 equity shares
of ? 10 each and also approved the sub division of the existing paid up shares of the Company from 81,25,411 equity shares
of ? 1000 each into 81,25,41,100 equity shares of ? 10 each, which was approved by the shareholders in Extra-ordinary
General Meeting held on May 17, 2024. The record date for the share split was May 17, 2024.

B. Nature and purpose of reserves

(i) General reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve
pursuant to the earlier provisions of the Companies Act 1956. Mandatory transfer to general reserve is not required
under the Companies Act 2013.

(ii) Retained earnings

Retained earnings represents comprises of Company's undistributed earnings after taxes.

Notes:

(i) VAT / CST deferral loan (unsecured)

As per the Memorandum of Understanding ('the MoU'), dated July 18, 1996, between the Company and the Government
of Tamil Nadu (GoTN) read along with the deed of agreement dated September 23, 2005, the Company is eligible for and
has opted for sales tax (including VAT and CST) deferral on sale of vehicles. Each tranche of the loan is an interest free
loan and is repayable in equal quarterly installments over a period of 5 years after the deferment period of 14 years. The
number of installments outstanding as at March 31, 2025 are 20 (March 31, 2024 are 24). Refer table below for gross
amount outstanding.

(ii) CST soft loan (secured)

As per the MOU dated January 22, 2008 entered into between the Company and the GoTN, the Company is eligible for infrastructure,
labor and other support in the form of fiscal incentives on meeting certain specified milestones .The amounts of such incentives
have been determined and accounted for by the management based on the terms specified in the MoU. Each tranche of the
loan carries 0.1% interest and is repayable in equal quarterly installments over a period of 5 years after 14 years. The number of
installments outstanding as at March 31, 2025 are 52 (March 31, 2024 are 56). Refer table below for gross amount outstanding.
The loan is secured by a charge against specified property plant and Equipment (other than plant and equipment) of the
Company to the extent of ? 6,000 million (March 31, 2024: ? 6,000 million). Also refer note 4(ii).

Notes:

A Customs duty:

(i) The Directorate of Revenue Intelligence (DRI) had
initiated certain inspections/inquiries in connection
with customs compliances. During the year ended
March 31, 2012, the Company had received a
notice from the DRI alleging mis-declaration of the
transaction value of goods imported by the Company.
The Company had challenged the said notice and also
the inquiries/investigations and filed writ petitions
before the Honourable High Court of Madras seeking
a stay on the proceedings, which had been granted.
Subsequently the stay was vacated. The Company
received a demand of ? 5,777.77 million (including
penalties of ? 3,018.89 million) during the year
ended March 31, 2016, (of which ? 88.62 Million
was appropriated by the Customs Authorities and
charged off to the Statement of Profit and Loss during
the year ended March 31, 2012). The department had
also mentioned that the goods which are a subject
matter of the demand of customs duty, is also liable
for confiscation under Section 111 of the Customs
Act, 1962. The Company had filed stay of operation of
order and appeal against the order with the Customs,
Excise and Service Tax Appellate Tribunal (CESTAT)
which is pending for disposal as at March 31, 2025.
The next hearing is scheduled on August 05, 2025.

Since Fiscal 2011, all bill of entries declared by
the Company have been subject to a provisional
assessment by the Office of the Commissioner
of Customs (Sea Port). However, Company has
continued to pay the customs duty applicable on
such bill of entries under provisional assessment
in accordance with the applicable rate prescribed
by Central Board of Indirect Tax and Customs.
Further, the Company is not subject to any ongoing
investigation in this regard. The Company has
executed provisional duty bonds at reporting period
representing the assessable value of the goods
imported under the bill of entries submitted, in favor
of the Deputy Commissioner of Customs, under
the terms of which, the Deputy Commissioner of
Customs has agreed to make provisional assessment
of certain goods, as prescribed under the Bonds,
until the finalization of the bill of entries.

During the year 2023, the Company received
investigation report from Deputy Commissioner
of Customs, Special Valuation Branch rejecting the
transaction value made by Company from 2011
onwards stating the related overseas supplies may
be assessed at invoice value adjusted in accordance
with Rule 10 of the Customs Valuation (Determination
of Value of Imported Goods) Rules, 2007 read with
section 14 (1) of the Customs Act, 1962 including
principle envisaged in case stated above for

which the next hearing is scheduled on August 05,
2025. Investigation report also stated that if any
contemporary imports at higher prices are noticed
or there exists reasons other than the influence of
relationship to doubt the value, assessing groups
may evaluate the value of imported goods under
appropriate provisions of the Customs Valuation
(Determination of Value of Imported Goods) Rules,
2007. The Company had filed an appeal against
the investigation report, however the same was
rejected by the CESTAT stating that investigation
is not an appealable order. Subsequently, the
Company has filed letter with Customs authorities
requesting for finalization of bill of entries through
their communication dated February 18, 2025.
Pursuant to legal advice received along with with
management evaluation performed, management
believes that any liability for the aggregate amount
of duty payable, if any, on the bill of entries under
provisional assessment for the period since Fiscal
2011, in the future, will not be material basis
evaluation performed by the Company.

(ii) During the year ended March 31, 2013, the Company
received a demand notice for recovery of Extra Duty
Deposit refunded by the department during the prior
years amounting to ? 91.31 million from the Deputy
Commissioner of Customs on account of issue of
the above notice by DRI. The Company challenged
the demand and obtained stay of demand filing a
writ petition before the Honourable High Court of
Madras which is pending for disposal.

(iii) During the year ended March 31, 2016, the Company
also received certain other adjudication orders
rejecting the classification of certain goods imported
by the Company and reclassifying the same under
different heading of the customs tariff amouting to
? 551.13 million. The Company had filed appeals
against these orders with Commissioner of Customs
(Appeals). Subsequently, the Commissioner of
Customs (Appeals) upheld the adjudication order
classifying the goods imported by the Company
under a different heading of the customs tariff.
The Company has paid the differential duty under
protest and filed appeals with CESTAT challenging
the Appellate Order and the hearings at CESTAT is
pending disposal as at March 31, 2025.

(iv) During the year ended March 31, 2021, the Company
had received an order rejecting the classification of
"Cover Assembly Front door Quadrant" imported
by the Company and reclassifying the same under
different heading of the customs tariff. The said order
has imposed an additional duty of ? 64.94 million and
an Penalty amount ? 65.59 million for the imports
made during the period from June 2016 to Mar
2018. The Company has filed appeals with CESTAT

challenging the Appellate Order and the hearings at
CESTAT is pending for disposal as at March 31, 2025.

Further, the Company received an order during the
year 2010, stating the company has not fulfilled
Export Obligation for Capital items valuing ? 479.52
million imported during the period from Nov 2010 to
Feb 2011.The said order has imposed an additional
duty of ? 126.09 million and a penalty of ? 11
million. Further it has also levied interest in terms
of Notification No 102/2009 dated September 11,
2009 .The Company has filed appeals with CESTAT
challenging the Appellate Order and the hearings at
CESTAT is pending for disposal as at March 31, 2025.

(v) In addition to the above, the outstanding demand
under dispute towards various other Customs cases
in respect of which the hearings are in progress at
various levels at Customs Authorities / Appeals as at
March 31, 2025 amounts to ? 12.99 million (March
31, 2024: ? 12.99 million)

(vi) The Company paid an amount of ? 313.32 million
under protest to Directorate of Revenue Intelligence
towards investigation proceedings commenced
against the Company for incorrect classification of
Electronic Control Unit for certain goods imported
during the period (from March 4, 2020 - March 11,
2022). The Company recived favorable order from
CESTAT and applied for a refund however Department
gone for an appeal.

5 Anti-dumping duty

During the year ended March 31, 2015, the Directorate
General of Anti-Dumping and Allied Duties initiated an
investigation on import of cast and aluminium alloy wheels
exported from China, Korea and Thailand and levied anti
dumping duty on cast aluminium alloy wheels which
have been imported into India allegedly at less than its
normal value and passed a provisional order for a period
of six months from April 11, 2014. The Company had filed
four writ petitions before the Honourable High Court of
Madras in this connection challenging the provisional
order passed by the department and paid ? 165.66 million
under protest, as against the Anti Dumping Duty payable
of ? 320.40 million and charged to the Statement of Profit
and Loss Account. Consequent to the legal suit filed, the
Company also carries the amount paid as receivable and
on grounds of prudence, provided for the same. However,
in December 2014, the Honourable High Court of Madras
had dismissed the writ petitions. The Company had filed
writ appeal with the division bench of the Honourable
High Court of Madras against the said order of the single
member bench. During the year ended March 31, 2016,
the Company received a transfer petition transferring the
appeal to the Honourable Supreme Court of India and
the Company has filed required counter petitions with

the Honourable Supreme Court of India and the same is
pending disposal as at March 31 2025.

In the meanwhile, the Directorate General of Anti¬
Dumping and Allied Duties had issued final order on
May 22, 2015 levying Anti-Dumping duty for a period
of five years commencing April 11, 2014. The Company
is of the opinion that Anti-Dumping Duty shall not be
levied with retrospective effect, based on the precedent
judgement of the Honourable Supreme Court of India in a
similar case and has not provided for / paid Anti-Dumping
duty for the period from October 2014 to May 2015.

Further, the Company has paid Anti-dumping duty
commencing from the period May 22, 2015 (date of
notification of Final Order) till March 31, 2025 under
protest amounting to ? 6,976.53 million (March 31, 2024
: ? 6,976.53 million) which has been charged off to the
Statement of Profit and Loss Account.

C Excise duty, Service tax and GST

(i) During October 2021, the Company had received
order from the Additional Director General
demanding payment of Differential Central excise
duty amounting to ? 3,574.10 million and penalty
amounting to ? 3,574.10 million. The Company has
filed a writ petition with the Honorable Madras High
court and the Company deposited minimum amount
required under section 35F of the Central excise
Act, 1944. The Company has paid ? 100 million
pre-deposit as at March 31, 2025 (March 31, 2024
: ? 100 million). The Hon'ble Madras High Court
informed the company to file appeal before Tribunal
(CESTAT) and accordingly the company had filed
appeal before CESTAT in Oct 2024. Further there
are pending litigations for various other matters
relating to Service Tax involving demands, for which
the Company has filed appeals against the orders
received which are pending at various forums as at
March 31, 2025.

(ii) The Company received orders from Commissioner
(Appeals) rejecting the appeal for refund of input
tax credit on account of zero rated supply and
confirming the GST demand amounting to INR
820.98 million upto March 31, 2023 and received
order from Additional Commissioner for the matters
relating TRAN 1 credit ? 711.99 million as at the year
ended March 31, 2024. The Company has filed Writ
Petitions before the Hon'ble Madras High court and
has obtained stay of the operation and all further
proceedings pursuant to the demand order received
by the Company. The Company had paid ? 82.10
million as pre-deposit as at March 31, 2025 (as at
March 31, 2024 : ? 82.10 million).

(iii) The Company has filed a writ petition in March,
2024 before the Hon'ble Madras High Court against

an order dated December 23, 2023 passed by the
Additional Commissioner, Office of Commissioner
of GST & Central Excise (Chennai - Outer) (“Order”)
in relation to a show-cause cum demand notice
dated September 28, 2023 (“SCN”) issued by the
Directorate General of GST, Intelligence, Gurugram
Zonal Unit, in connection with an investigation
conducted for demand of integrated goods and
services tax of ? 1,666.77 million under the reverse
charge mechanism on secondment/ deployment of
employees by the Company. It was alleged that the
secondment of employees to our Company is a form
of supply of manpower service from an overseas
supplier and thus constitutes a “supply” in terms
of Section 7 of the Central Goods and Services Act,
2017. While the matter is currently pending, the
Hon'ble Madras High Court has issued an interim
stay on the Order.

(iv) During October 2023, the Company received an
order from the Additional Commissioner of Central
tax demanding payment of differential Goods
and Services tax (Compensation Cess) amounting
to ? 2,586.76 million and penalty amounting to ?
2,586.76 million towards certain SUV cars sold. The
Company has filed an appeal with the Commissioner
(Appeals) pursuant to the demand order received by
the Company. The Company has paid an amount of
? 258.60 million pre-deposit as at March 31, 2025
(as at March 31, 2024 : 258.60)

D Investigation by the Competition Commission of India

(i) In 2012, the Directorate General of the Competition
Commission of India (CCI) had submitted its final
investigation report to the CCI regarding violations
of the provisions of Competition Act, 2002.

In the meanwhile, the Company filed a writ petition
before the Honourable High Court of Madras
challenging the jurisdiction of the CCI to expand
the investigation in respect of the above matter
and requesting for a stay which was granted
initially. During the year ended March 31, 2015, the
Honourable High Court of Madras dismissed the
Company's petition challenging the jurisdiction of
the CCI stating that CCI has powers to expand the
investigation. The Company had filed a writ appeal
before the Divisional Bench of the Honourable
High Court of Madras, and obtained Interim order
that CCI should not pass final order till disposal of
writ appeal. Meanwhile, CCI had issued final order
imposing a penalty of ? 4,202.61 million violating
Division Bench Order. However CCI has clarified that
the order shall be enforceable based on and subject
to the direction of the Honourable High Court of
Madras in connection with the writ appeal filed by
the Company.

The writ appeal was subsequently dismissed by the
High Court of Judicature at Madras on July 23, 2018.
The Company filed an appeal before the National
Company Law Appellate Tribunal (NCLAT) against the
CCI Order. On October 29, 2018, the NCLAT heard the
matter for admission and directed the Company to
deposit 10% of ' 4,202.61 million within three weeks.
The Company filed an appeal before the Supreme
Court of India (SC) against the NCLAT Interim Order.
On November 16, 2018, the SC granted a interim stay
on the operation of the CCI Order. Further in January
20, 2020, the Supreme Court granted Permanent Stay
on of NCLAT order for deposit of ? 420.00 million
and directed NCLAT to decide HMIL's Appeal on
Merits. Consequently, the Company is not required
to deposit 10% of ? 4,202.61 million with the NCLAT
till the SC Order is operational. The pleadings in the
NCLAT appeal are complete and the appeal was listed
on March 25, 2020 for final arguments. However, due
to the COVID-19 pandemic, the matter was adjourned
and is yet to be listed for hearing before NCLAT.

(ii) Further, the CCI had directed the Director General
for an investigation to be made in respect of the
complaints made by two terminated dealers against
the Company. The Company received notices seeking
certain information for the purpose of investigation
and the Company had furnished the required details.
During the year ended March 31, 2018, CCI passed
an order imposing a penalty of ? 870.00 million on
the Company. The Company filed an appeal before
NCLAT against the order and received an order in
favor of the Company during the year ended March
31, 2019 by setting aside the CCI Order. CCI has
further filed an appeal before Supreme Court in
November 2018 against our favourable order. This
case is now pending before Supreme Court and it is
yet to be listed for hearing.

The Company believes that it has a good case to obtain
a favourable judgement in respect of the above matters
and there is no additional financial exposure in respect
of the same.

E Export Promotion Capital Goods Scheme (“EPCG Scheme”)

The Director General of Foreign Trade (“DGFT”) under
the Export Promotion Capital Goods Scheme (“EPCG
Scheme”) (“EPCG Authorizations”) had issued a show-
cause notice dated June 6, 2015 (“SCN”) that our
Company had not installed the capital goods imported
under the EPCG Scheme at the locations approved under
the EPCG Authorizations and subsequently ordered our
Company to pay the duty amount of ? 872.70 million.
Further, pursuant to an order dated October 28, 2016
(“Order”), the Commissioner of Customs, Chennai - IV
had issued an order to our Company, wherein a duty of
? 0.29 million, a redemption fine of ? 1.00 million and a

Notes:

(i) The Holding Company / certain other Group Companies (together referred to as “Group Companies”), incur certain
common costs on behalf of the Company / other entities in the Group. These costs primarily relate to certain world¬
wide marketing, infrastructure and other costs incurred at an overall Group Level. Such costs have been accounted
for in the financial statements of the Company based on and to the extent of actual debits received from the Group
Companies. The Group Companies have confirmed to the Management that, as at March 31, 2025, there are no further
amounts payable to them by the Company, on this account other than the amounts disclosed in these standalone
financial statements.

(ii) The Company incurs certain costs on behalf of other Companies in the Group. These costs have been allocated /
recovered from the Group Companies on a basis mutually agreed to with the Group Companies.

(iii) Refer note 36 for information on transactions with post employment benefit plans.

(iv) Provisions for contribution to gratuity and compensated absences are determined by the actuary on a overall basis
at the end of each year and, accordingly, have not been considered in the above information. The amount is only
disclosed at the time of payment.

(v) All related party transactions entered during the year were in ordinary course of the business and on arm's length basis.
Outstanding balances at the year-end are settled in cash or credit as per the terms of the arrangement. There have
been no guarantees provided or received for any related party receivables or payables other than those disclosed.

38 Segment reporting

The Company publishes these standalone financial statements along with the consolidated financial statements. In accordance with

Ind AS 108, Operating Segments, the Company has disclosed the segment information in the consolidated financial statements.

39 Leases

(see accounting policy in note 2.16)

A. Leases as a lessee

The Company has entered into various lease agreements in respect of land/certain offices/showroom spaces at various
places. These arrangements are non-cancellable in nature and the lease period varies from 1 year to 88 years. There are
no extension options available.

Notes:

(i) The investments in subsidiaries (refer note 7) is accounted at cost less impairment, if any.

(ii) The Company has not disclosed the fair values of financial instruments such as trade receivables, loans, cash and
cash equivalents, bank balances other than cash and cash equivalents, bank overdrafts and trade payables, because
their carrying amounts are a reasonable approximation of fair value.

41.3Financial risk management

The Company has exposure to the following risks from its use of financial instruments:

Credit risk
Liquidity risk
Market risk

The Company's treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk
reports which analyse the exposure by degree and magnitude of risks. The treasury function reports periodically to the
Board of Directors of the Company. The Board of Directors has overall responsibility for the establishment and oversight
of the Company's risk management framework. The Board of Directors has established a risk management policy to
identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risk and
adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the
Company's activities.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations and arises principally from the Company's trade receivables, treasury operations and
Government receivables.

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. Management
considers that the demographics of the Company's customer base, including the default risk of the industry and country
in which customers operate, has less of an influence on credit risk. The Company is not exposed to concentration of credit
risk to any one single customer since the products are sold to and services are provided to customers who are spread over
a vast spectrum and hence, the concentration of risk with respect to trade receivables is low.

The credit worthiness of the customers are assessed through a strong credit risk assessment policy of the Company. The
Company's domestic sales operates primarily on a cash and carry / advance model and do not carry significant credit risk.
The Company's credit period on export sales varies on case to case basis based on market conditions and are normally
backed by a letter of credit to cover the risk.

Cash and cash equivalents and other investments

In the area of treasury operations, the Company is presently exposed to counter-party risks relating to liquid funds and
short term and medium term deposits placed with public / private sector banks. The credit risk is limited considering that
the counterparties are banks with high credit ratings and repute.

Government receivables

The credit risk on receivables from government agencies / authorities is nil considering the sovereign nature of the receivables.
Liquidity risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is
to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. Typically the
Company ensures that it has sufficient cash on demand to meet expected operational expenses, servicing of financial
obligations. In addition, the Company has concluded arrangements with well reputed banks, and has unused lines of
credit that could be drawn upon, should there be a need. The Company invests its surplus funds in bank fixed deposits.

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with
agreed repayment periods. The amounts are gross and undiscounted, and include contractual interest payments. The
contractual maturity is based on the earliest date on which the Company may be required to pay.

Market risk:

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and
other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to foreign
exchange rate risk (currency risk), interest rate risk and the market value of its investments. Thus the Company's exposure to market
risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Currency risk - Exposure to foreign currency

The Company's exposure in USD, Korean Won and other foreign currency denominated transactions mainly on import of
components, and export of vehicles gives rise to exchange rate fluctuation risk. These financial exposures are managed in
accordance with the company's risk management policies and procedures. The Company majorily adopts natural hedge
strategy by utilizing Exports proceeds to make payments for imports of components. The appropriateness / adequacy of
the natural hedging principle is reviewed periodically with reference to the approved foreign currency risk management
policy followed by the Company. It also utilizes discounting of export bills and foreign currency forward contracts in order
to mitigate fluctuation risk. Company enters into foreign currency forward contracts in USD and Korean Won. Fair value
of these forward contracts is determined using valuation provided by authorized dealers dealing in foreign exchange.
Forward Contracts are used exclusively for hedging foreign currency risk and not for trading or speculative purpose.

43.5 Transfer pricing - International transactions

The Company has entered into international transactions with associated enterprises. For the financial year ended
March 31, 2024, the Company has obtained the Accountant's report from a Chartered Accountant as required by the
relevant provisions of the Income-tax Act, 1961 and has filed the same with the tax authorities. For the year ended
March 31, 2025, the Company maintains documents as prescribed by the Income-tax Act to prove that these transactions are
at arm's length and believes that the aforesaid legislation will not have any impact on the standalone financial statements,
particularly on the amount of tax expense and that of provision for taxation.

45 Initial Public Offering - Offer for sale (OFS)

During the year ended March 31, 2025, the Company has completed initial public offer (IPO) of 142,194,700 equity shares of face
value of INR 10 each at an issue price of INR 1,960 per share, comprising offer for sale of shares by Hyundai Motor Company,
South Korea Limited (Holding Company). Pursuant to the IPO, the equity shares of the Company were listed on National Stock
Exchange of India Limited (NSE) and BSE Limited (BSE) on October 22, 2024. The Company has not received any proceeds
from the offer and all such proceeds (net of any offer related expenses which are borne by Holding Company) have gone to
the Holding Company. The offer has been authorized by resolution of Board of Directors at their meeting held on May 17, 2024.

49 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
Company towards Provident Fund and Gratuity. The Ministry of labor and Employment has released draft rules for the
Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under
active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are
notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective
and the related rules to determine the financial impact are published.

50 Subsequent events

There are no subsequent events that have occurred after the reporting period till the date of approval of these standalone

financial statements except for as disclosed in Note 17 D to the standalone financial statements.

As per our report of even date attached.

for B S R & Co. LLP for and on behalf of the Board of Directors of

Chartered Accountants Hyundai Motor India Limited

ICAI Firm's Registration No.: 101248W/W-100022 CIN: L29309TN1996PLC035377

Harsh Vardhan Lakhotia Unsoo Kim Wangdo Hur

Partner Managing Director Whole-time Director and CFO

Membership Number: 222432 DIN: 09470874 DIN: 10039866

Place: Gurugram Place: Gurugram

Pradeep Chugh

Company Secretary

Membership Number: A18711

Place: Chennai Place: Gurugram

Date: May 16, 2025 Date: May 16, 2025