the asset (or cash-generating unit) in prior years. A reversal
of an impairment loss is recognised immediately in the
statement of profit and loss, unless the relevant asset is
carried at a revalued amount, in which case the reversal
of the impairment loss is treated as a revaluation increase.

2.21 Provisions and contingencies

Provisions are recognised 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 recognised 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 recognised 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 recognised
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.

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 organisation 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.

? 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 realisation 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”) notifies new
standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. There is no such notification which
would have been applicable from April 01, 2024.

19 FINANCIAL LIABILITIES - NON-CURRENT (contd.)

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. 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, 2024 are 24 (March 31, 2023 : 28). 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, labour 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.
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, 2024 are 56 (March 31, 2023 : 56). As per the terms of MOU with the
GoTN, the repayment of principal will commence from June 2024 onwards, though interest is paid on a quarterly basis. Refer
table below for gross amount outstanding.

The loan is secured by a charge against specified fixed assets of the Company to the extent of ? 6,000.00 million (March 31,
2023: ? 6,000.00 million). Also refer note 4(ii).

(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, 2024.
The next hearing is scheduled on October 23, 2024.

Due to the ongoing matter as detailed above, all
bill of entries declared by the Company since Fiscal
2011 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 favour 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 case given in above paragraph 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. 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, 2024.

(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, 2024

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, 2024.

(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, 2024 amounts to ? 12.99 million (March
31, 2023: ? 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 expects a favorable outcome
based on professional advice.

B 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 previous 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 2024.

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, 2024 under
protest amounting to ? 6,976.53 million (March 31, 2023:
? 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 has received order
from the Additional Director General demanding
payment of Central excise duty amounting to
? 3,574.00 million and penalty amounting to
? 3,574.00 million. The Company has filed a writ
petition with the Honorable Madras High court
to grant the stay of the operation and all further
proceeding pursuant to the demand order received
by the Company. The Company has received order
from Honorable Madras High court granting interim
stay of recovery proceedings pending disposal of
Writ petition subject to the Company depositing

minimum amount required under section 35F of the
Central excise Act, 1944. The Company has paid
? 100 million pre-deposit as at March 31, 2024 (March
31, 2023 : ? 100 million). Further there are pending
litigations for various other matters relating to Excise
Duty and 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, 2024.

(ii) The Company received orders from Commissioner
(Appeals) rejecting the appeal for refund of input tax
credit on account of zero rated supply and orders from
Additional Commissioner for the matters relating to
GST on seconded employees and TRAN 1 credit,
confirming the GST demand amounting to INR 820.98
million upto March 31, 2023 and ? 3,437.63 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,
2024 (as at March 31, 2023 : ? 82.10 million).

(iii) During October 2023, the Company received an order
from the Additional Commissioner of Central tax
demanding payment of higher Goods and Services
tax (Compensation Cess) amounting to ? 5,173.51
million (including penalty) 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, 2024 (as at March 31, 2023 : Nil).

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 favour 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 Authorisations”) 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 Authorisations
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 penalty of ?0.40 million were levied against
our Company. However, the duty demand of ?872.70 million
issued by the DRI in the SCN had been dismissed under the
Order. Aggrieved by the Order, the DRI has filed an appeal
before the CESTAT (“Appeal”) challenging the dismissal of the
duty demand by the DRI, and the matter is currently pending.
These pertain to 53 EPCG Authorizations, for which believes
that it has fulfilled 100% of the required export obligations.
However, due to the Appeal by DRI, the DGFT has not issued
export obligation discharge certificates.

F Show cause notices/draft assessment orders

The details of the show cause notices/draft assessment
orders received by the Company from various government
agencies pending formal orders / demand notices, which
are not considered as claims against the Company not
acknowledged as debts, are given below:

Note:

The Company had received show cause notices from
the DRI demanding an amount of ? 1,194.76 million in
connection with various matters. The department has 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
has filed / is in the process of filings replies for the same
and expects a favorable outcome in respect of the same.

G. Guarantees

The Company had executed a Deed of Corporate Guarantee
in favour of SIPCOT for CST Soft Loan of ? 6,000.00 million.

H. Management's assessment

The amounts shown under contingent liabilities and disputed
claims represent the best possible estimates arrived at on

the basis of the available information. The Company's tax
jurisdiction is in India. Significant judgements are involved
in determining the provision for income taxes including
judgement on whether tax positions are probable of being
sustained in tax assessments. A tax assessment can involve
complex issues, which can only be resolved over extended
time periods.

Further, various government authorities raise issues/
clarifications in the normal course of business and the
Company has provided its responses to the same and no
formal demands/claims has been made by the authorities
in respect of the same other than those pending before
various judicial/regulatory forums as disclosed above. The
uncertainties and possible reimbursement in respect of the
above are dependent on the outcome of the various legal
proceedings which have been initiated by the Company or
the claimants, as the case may be and, therefore, cannot be
predicted accurately or relate to a present obligations that
arise from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable
estimate cannot be made. The Company expects a favorable
decision with respect to the above disputed demands /
claims based on professional advice, as applicable and,
hence, no specific provision for the same has been made.
The above assessment also involves detailed evaluation of
complaint received by a regulator. Also refer note 28(b).

36.2 Compliance with Corporate Average Fuel
Efficiency Norms ('CAFE')

The management has performed an evaluation of the
Corporate Average Fuel Efficiency Norms and confirmed
that it is in compliance with the necessary norms. The
Company also confirms that the amendments pursuant
to the Energy Conservation (Amendment) Bill, 2022 read
with The Motor Vehicles (Amendment) Act, 2019 norms
is effective from April 1, 2023.

As at the reporting date, in determining the compliance
for the financial year 2023-24, the Company has satisfied
the applicable technical requirements and has maintained
adequate documentation in support of its evaluation.
Accordingly, the Company believes that computation
of average fuel efficiency based on sales recorded is in
compliance with the prevalent norms as at the reporting
period end. It may be noted in this context that such
compliance was subject to scrutiny by the regulatory
authorities on the basis of the filings made by the Company
and the scrutiny for such compliance was completed by
the regulatory authorities on the basis of the filings made
by the Company and confirmation on compliances has
been obtained by the Company.

Based on their assessment, management has confirmed
that they do not expect any material impact on the
financial position for the year ended March 31, 2024 post
such scrutiny by the regulatory authorities. Further, the
Company has also obtained relevant legal advice / opinion.

Note:

(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.

42.3 Financial 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:

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.

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 Labour 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 18D and 41.

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: U29309TN1996PLC035377

Harsh Vardhan Lakhotia Unsoo Kim Wangdo Hur

Partner Managing Director Executive Director and CFO

Membership Number: 222432 DIN: 09470874 DIN: 10039866

Place : Gurgaon Place : Gurgaon

Divya Venkat

Company Secretary
Membership Number: A33561

Place: Chennai Place: Chennai

Date: September 20, 2024 Date: September 20, 2024