Kumar Ltd. is engaged in the manufacture of both passenger cars and commercial vehicles. The management has recently developed a long-term strategic…

Kumar Ltd. is engaged in the manufacture of both passenger cars and commercial vehicles. The management has recently developed a long-term strategic vision under which the company intends to gradually shift its focus away from the passenger car segment and move more strongly toward the commercial vehicles business over the next five years. As part of this broad strategy, the management has informally discussed a plan to reduce the production of passenger cars by approximately 20% every year and, in parallel, to establish a new manufacturing facility dedicated to commercial vehicles. It is also envisaged that certain employees will be transferred in phases to support the expansion of the commercial vehicle division. However, despite these strategic intentions, no specific or detailed plan has been formulated or approved for the sale, closure, or complete discontinuance of the passenger car division. There is no formal plan regarding the disposal of its assets, and no proposal has been placed before or approved by the Board of Directors. Further, the proposed new commercial vehicle factory has not commenced operations, nor have any binding commitments been made. In light of the above circumstances, you are required to comment on whether such gradual scaling down of activities, without a formal and approved plan for disposal, can be regarded as a 'Discontinuing Operation' within the meaning of AS 24 - Discontinuing Operations.