TVS Motor Company Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2026

q) Provisions and contingent liabilities

i) Provision

A provision is recorded when the Company has a
present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources will be required to settle the obligation
and the amount can be reasonably estimated.
The estimated liability for product warranties
is recorded when products are sold based on
technical evaluation.

Provisions are measured at the present value of
management''s best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.

The increase in the provision due to the passage
of time is recognised as interest expenses.

ii) Contingent liabilities

Wherever there is a possible obligation that
arises from past events and whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future
events not wholly within the control of the entity
or a present obligation that arises from past
events but is not recognised because (a) it is not
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation; or (b) the amount of the obligation
cannot be measured with sufficient reliability,
are considered as contingent liabilities. Show
cause notices are not considered as Contingent
Liabilities unless converted into demand.

iii) Warranty

Provision is made for estimated warranty claims
in respect of vehicles sold which are still under
warranty at the end of the reporting period.
These claims are expected to be settled from
the next financial year. Management estimates
the provision based on historical warranty claim
information; and any recent trends that may
suggest future claims could differ from historic
and the dues which are payable within 12 Months
is classified as current and others are non-current.

r) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision Maker.

The Company''s Chief Operating Decision Maker
(CODM) examines Risks and Rewards of the entity''s
performance and allocates the resources aligning with
the Company''s strategy.

The Company identified operations from which
significant risks and rewards are derived in two
verticals viz (a) Automotive Vehicles & Parts and
related investments and (b) Investment held in
Financial services.

Profit of the Financial services vertical represents
dividend, interest, profit / (Loss) on fair valuation / sale
of investments.

The Investments of the Company in TVS Credit Services
Limited and TVS Motor Services Limited and other non¬
strategic companies categorized as Financial services.

s) Leases

Leases are recognised as a right-of-use asset and a
corresponding liability at the date at which the leased
asset is available for use by the Company. Contracts
may contain both lease and non-lease components.
The Company allocates the consideration in the
contract to the lease and non-lease components
based on their relative stand-alone prices. However,
for leases of buildings, for which the Company is a
lessee, it has elected not to separate lease and non¬
lease components and instead accounts for these as
a single lease component.

Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities
include the net present value of the following
lease payments:

^ fixed payments (including in-substance fixed
payments), less any lease incentives receivable
^ variable lease payment that are based on an
index or a rate, initially measured using the index
or rate as at the commencement date

^ amounts expected to be payable by the
Company under residual value guarantees
^ the exercise price of a purchase option if the
Company is reasonably certain to exercise that
option, and

^ payments of penalties for terminating the lease,
if the lease term reflects the Company exercising
that option

Lease payments to be made under reasonably
certain extension options are also included in the
measurement of the liability. The lease payments
are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, which
is generally the case for leases in the Company, the
company''s incremental borrowing rate is used,
being the rate that the Company would have to pay
to borrow the funds necessary to obtain an asset
of similar value to the right-of-use asset in a similar
economic environment with similar terms, security
and conditions.

To determine the incremental borrowing rate,
the Company:

^ where possible, uses recent third-party financing
received by the Company as a starting point,
adjusted to reflect changes in financing conditions
since third party financing was received
^ uses a build-up approach that starts with a risk¬
free interest rate adjusted for credit risk for leases
held by the Company which does not have recent
third party financing, and

^ makes adjustments specific to the lease, e.g.
term, country, currency and security.

The Company is exposed to potential future increases
in variable lease payments based on an index or rate,
which are not included in the lease liability until they
take effect. When adjustments to lease payments
based on an index or rate take effect, the lease liability
is reassessed and adjusted against the right-of-
use asset.

Lease payments are allocated between principal and
finance cost. The finance cost is charged to profit and
loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of
the lease liability for each period. The carrying amount
of lease liability is reduced by net lease payments (i.e.
lease payments net off finance cost).

Variable lease payments that depend on sales are
recognised in profit and loss in the period in which the
condition that triggers those payments occurs.

Right-of-use assets are measured at cost comprising
the following:

^ the amount of the initial measurement of
lease liability

^ any lease payments made at or before
the commencement date less any lease
incentives received

^ any initial direct costs, and
^ restoration costs.

Right-of-use assets are generally depreciated over
the shorter of the asset''s useful life and the lease term
on a straight-line basis. If the Company is reasonably
certain to exercise a purchase option, the right-of-
use asset is depreciated over the underlying asset''s
useful life.

Payments associated with short-term leases of
equipment and all leases of low-value assets are
recognised on a straight-line basis as an expense in
profit and loss. Short-term leases are leases with a lease
term of 12 months or less. Low-value assets comprise IT
equipment and small items of office furniture.

t) Cash and Cash equivalents

For the purpose of presentation in the statement of
cash flows, cash and cash equivalents include cash
on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value,

and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

u) Trade receivables

Trade receivables are measured at their transaction
price on initial recognition, unless it contains
a significant financing component or pricing
adjustments embedded in the contract in which cases,
it is recognised at fair value. Trade receivables are held
with the objective of collecting the contractual cash
flows and therefore are subsequently measured at
amortised cost less allowance for expected credit loss.

v) Contract liabilities

A contract liability is the obligation to transfer goods
to a customer for which the Company has received
consideration (or an amount of consideration is due)
from the customer. If a customer pays consideration
before the Company transfers goods or services to
the customer, a contract liability is recognised when
the consideration is received. Contract liabilities are
recognised as revenue when the Company performs
under the contract.

w) Investments and Other financial assets

i) Classification

The Company classifies its financial assets in the
following categories:

^ Those to be measured subsequently at fair
value (either through Fair Value Through
Other Comprehensive Income (FVTOCI), or
Fair Value Through Profit or Loss (FVTPL)), and

^ Those measured at amortized cost.

The classification depends on the entity''s business
model for managing the financial assets and the
contractual terms of the cash flow.

ii) Measurement

At Initial recognition, the Company measures a
financial asset at its fair value plus transaction
cost (in the case of a financial asset not at FVTPL)
that are directly attributable to the acquisition of
the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss
are expensed in profit and loss.

Debt Instruments

Subsequent measurement of debt instruments
depends on the company''s business model
for managing the asset and the cash flow
characteristics of the asset. There are three

measurement categories into which the Company
classifies its debt instruments.

Amortised Cost

Assets that are held for collection of contractual
cash flows where those cash flows represent
solely payments of principal and interest, are
measured at amortised cost. A gain or loss on
debt instrument that is subsequently measured
at amortised cost and is not part of a hedging
relationship is recognised in profit and loss when
the asset is de-recognised or impaired. Interest
income from these financial assets is included
in other income using the effective interest
rate method.

Fair value through other comprehensive
income (FVTOCI)

Assets that are held for collection of contractual
cash flows and for selling the financial assets,
where the assets'' cash flows represent solely
payments of principal and interest, are measured
at FVTOCI. Movements in the carrying amount are
taken through OCI, except for the recognition of
impairment gains or losses, interest income and
foreign exchange gains and losses which are
recognised in profit and loss.

Fair Value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised
cost or FVTOCI are measured at FVTPL. A gain or
loss on a debt investment that is subsequently
measured at FVTPL and is not part of a hedging
relationship is recognised in profit and loss and
presented in the statement of profit and loss in
the period in which it arises. Interest income from
these financial assets is included in other income.

Equity instruments

The Company subsequently measures all
investments in equity (except of the subsidiaries
/ associates) at fair value. Where the company''s
management has elected to present fair value
gains and losses on equity investments in other
comprehensive income, there is no subsequent
reclassification of fair value gains and losses to
profit and loss.

Impairment losses (and reversal of impairment
losses) on equity investments measured at FVTOCI
are not reported separately.

Where the Company elects to measure fair value
through profit or loss, changes in the fair value
of such financial assets are recognised in the
statement of profit and loss.

Investment in subsidiaries / associates

I nvestment in subsidiaries / associates are
measured at cost less provision for impairment.

iii) Impairment of financial assets

The company assesses on a forward looking
basis the expected credit losses associated with
its assets carried at amortised cost and FVTOCI
debt instruments. The impairment methodology
applied depends on whether there has been
significant increase in credit risk. Note 30 details
how the company determines whether there has
been a significant increase in credit risk.

For trade receivables, the Company applies the
simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected
credit losses to be recognised from initial
recognition of the receivables.

iv) Derecognition of financial assets

A financial asset is derecognised only when:

a) the Company has transferred the rights to
receive cash flows from the financial asset or

b) the Company retains the contractual rights to
receive the cash flows of the financial asset,
but assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the entity has transferred a financial asset,
the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of
the financial asset. In such cases, the financial
asset is derecognised. Where the entity has not
transferred substantially all risks and rewards of
ownership of the financial asset, the financial
asset is not derecognised.

Where the entity has neither transferred a financial
asset nor retains substantially all risks and rewards
of ownership of the financial asset, the financial
asset is derecognized, if the Company has not
retained control of the financial asset. Where the
company retains control of the financial asset, the
asset is continued to be recognised to the extent
of continuing involvement in the financial asset.

Interest Income:

Interest income from debt instruments is
recognised using the effective interest rate
method. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
through the expected life of the financial asset
to the gross carrying value of a financial asset.
While calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms of the
financial instrument (for example, prepayment,
extension, call and similar options), but does not
consider the expected credit losses.

x) Financial Liabilities:

Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of costs
of an asset is included under ''Finance costs''.

The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including
all fees and points paid or received that form an
integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the
expected life of the financial liability.

All financial liabilities are subsequently measured at
amortised cost using the effective interest method or
at FVTPL.

The Company derecognizes financial liabilities
when, and only when, the Company''s obligations are
discharged, cancelled or have expired.

Borrowings are removed from the balance sheet when
the obligation specified in the contract is discharged,
cancelled or expired. The difference between the
carrying amount of a financial liability that has been
extinguished or transferred to another party and the
consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in profit
and loss.

Borrowings are classified as current liabilities unless
the Company has an unconditional right to defer
settlement of the liability for at least 12 months after
the reporting period.

y) Borrowing costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or
production of a qualifying asset are capitalized during
the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying
assets are assets that necessarily take a substantial
period of time to get ready for their intended use or
sale. Other borrowing costs are expensed in the period
in which they are incurred.

z) Current and Non-current classification

The Company presents assets and liabilities
in the balance sheet based on current / non¬
current classification.

Cash or cash equivalent is treated as current,
unless restricted from being exchanged or used to
settle a liability for at least twelve months after the
reporting period.

In respect of other assets, it is treated as current when
it is:

^ expected to be realised or intended to be sold or
consumed in the normal operating cycle

^ held primarily for the purpose of trading
^ expected to be realised within twelve months
after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

^ it is expected to be settled in the normal
operating cycle

^ it is held primarily for the purpose of trading
^ it is due to be settled within twelve months after
the reporting period, or

^ there is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

The operating cycle is the time between the acquisition
of assets for processing and their realization in cash
and cash equivalents. The Company has identified
twelve months as its operating cycle.

aa) Earnings Per Share (EPS):

Basic earnings per share is computed by dividing the
''profit attributable to ordinary equity shareholders''
by the weighted average number of equity shares
outstanding during the year. Diluted earnings per share
is computed by dividing the profit after tax as adjusted
for dividend, interest and other charges to expense or
income relating to the dilutive potential equity shares,
by the weighted average number of equity shares
considered for deriving basic earnings per share and
the weighted average number of equity shares which
could have been issued on the conversion of all dilutive
potential equity shares.

ab) Treasury Shares

The Company has created an ESOP Trust (the ''Trust'') for
providing share-based payment to its employees. The
Company uses the Trust as a vehicle for distributing
shares to employees under the Employee Stock Option
Scheme. The Trust purchases shares of the Company
from the market for giving shares to employees. The
Company treats Trust as its extension and shares held
by the Trust are treated as treasury shares.

Own equity instruments that are re-acquired (treasury
shares) are recognised at cost and deducted from
other equity. As and when treasury shares are
transferred to employees on exercise after satisfaction
of the vesting conditions, the balance lying in “Treasury
share reserve" is transferred to “Retained earnings".

ac) Recent pronouncements

Ministry of Corporate Affairs (“MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time.

The Company has applied the following Ind AS
pronouncements pursuant to issuance of the
Companies (Indian Accounting Standards) Second
Amendment Rules, 2025 with effect from 1^st April 2025:

(i) I nd AS 7 - Statement of Cash Flows and Ind AS
107 - Financial Instruments: Disclosures: The
amendment requires disclosure of the effects
of supplier finance arrangements on the
Company''s liabilities, cash flows and exposure
to liquidity risk. The company has assessed the
impact of such arrangements on the standalone
Financial Statements and has provided requisite
disclosures in accordance with the amendments.
These amendments do no have any other impact
on the Standalone Financial Statements.

(ii) Ind AS 1 - Presentation of Financial Statements: The
amendments primarily impacts classification of
liabilities. In accordance with the amendments,
the requirement of classification of a liability as
non-current based on the existence of a right
to defer settlement for at least 12 months after
the reporting date has been revised to require
that such right must exist, with substance, at the
end of the reporting period. The amendments
also require assessment of compliance with
covenants for the purpose of classification of
liabilities, along with enhanced disclosures. The
Company has assessed the impact of these
amendments and has applied the revised
requirements for classification of liabilities as
current or non-current including compliance with
covenants, where applicable. These amendments
do not have any other impact on the Standalone
Financial Statements.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values to be disclosed in the
financial instruments that are recognised and measured at fair value and that are measured at amortised cost. To
provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into the three levels prescribed under the accounting standard. An explanation of each level
follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the
stock exchanges are valued using the closing price as at the end of the reporting period. The mutual funds are valued
using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities, preference shares and other non current investments included
in level 3.

(v) Valuation processes

Discount rates are determined using a capital asset pricing model to calculate a pretax rate that reflects current
market assessments of the time value of money and the risk specific to the asset. Earnings growth factor of preference
shares are based on cash flow projections of future earnings of the Company and unlisted equity securities are
estimated based on market information for similar type of companies. Risk adjustments have been derived based
on the market risk premium adjusted for companies relevant financial data.

The company''s policy is to recognise transfers in and transfers out of fair value hierarchy levels as at the end of the
reporting period.

During the reporting period, there are no transfers among the three levels.

(ii) Valuation technique used to determine fair value (Level 2)

Specific valuation techniques used to value financial instruments include:

^ the use of quoted market prices or dealer quotes for similar instruments

^ the fair value of interest rate swaps is calculated as the present value of estimated cash flows based on
observable yield curves.

^ the fair value of forward exchange contract and principal only swap is determined using forward exchange
rate at the balance sheet date.

^ the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial
assets and liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for preference shares and other debt instruments are calculated based on cash flows discounted
using effective interest rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of
unobservable inputs, including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a effective interest rate. They are
classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own
credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their
contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for
an understanding of the timing of the cash flows.

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated
financial instruments and the impact on other components of equity arises from foreign forward exchange
contracts designated as cash flow hedges.

ii) Interest rate risk

For short term borrowings, interest rates are based on central bank approved benchmark rates plus margin.
Whenever the Company resorts to short term borrowings through Commercial Paper, the rate of interest is fixed
in advance. In respect of long term foreign currency borrowings, the interest rates are covered through interest
rate swaps (IRS)

iii) Price risk

The company''s exposure to equity securities price risk arises from investments held by the Company and
classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. To manage
its price risk from investments in equity securities, the Company diversifies its portfolio. The impact of the changes
in price risk is not material.

31 Capital Management
(a) Risk management

The Company''s objectives when managing capital are to

^ safeguard our ability to continue as a going concern, so that we can continue to provide returns for
shareholders and benefits for other stakeholders, and

^ maintain an optimal capital structure to reduce the cost of capital.

I n order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the balance sheet).
The company''s strategy is to maintain an optimum gearing ratio. The gearing ratios were as follows:

(c) Issuance of 6% Cumulative Non-Convertible redeemable preference shares of L 10/- each
(NCRPS)

During the year, the Company issued 6% NCRPS aggregating to 1900.35 crores, redeemable at par after 12 months
from the date of allotment. The issuance is part of the Company’s capital management framework to optimise capital
structure and maintain financial flexibility .

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value
of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period)
has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(ii) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets
underperform this yield, this will create a deficit.

Changes in bond: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an
yield increase in the value of the plans'' bond holdings.

Inflation risks: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.
Life expectancy: The pension obligations are to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the plans'' liabilities. This is particularly significant where inflationary increases
result in higher sensitivity to changes in life expectancy.

(iii) Defined contribution plans

The Company''s contribution to defined contribution plan i.e., provident fund of H 71.24 crores (previous year H 58.79
crores) has been recognised in the Statement of Profit and Loss.

34 TVS Motor Company Employee Stock Option Plan
(a) Employee stock option plan

The Company introduced TVS Motor Company Employee Stock Option Plan to provide equity-based incentives to
the eligible employees of the Company. The plan is administered by the Nomination and Remuneration Committee
of the Company through a Trust. A maximum of 11,87,717 options may be granted under the Plan. Each option granted
under the plan entitles the holder to one equity share of the Company at an exercise price, which is approved by
the Nomination and Remuneration Committee (NRC). As per the plan, NRC grants options to the employees of the
Company. The vesting period of the option is one to ten years from the date of grant. Options granted under the
Scheme can be exercised within a period of four years from the date of vesting. The Nomination and Remuneration
Committee of the Company granted a further 1,27,027 stock options during the year under the TVS Motor Company
Stock Option Plan (ESOP Plan 2024) comprising 28,337 options under Category I and 98,690 options under Category II.

42 Additional Regulatory Disclosures as per Schedule III of Companies Act, 2013

(i) The Title deeds of the immovable properties (other than properties where the Company is the lessee and the
lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

(ii) The Company does not have any investment property.

(iii) As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and
Intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the
revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the
Companies Act, is not applicable.

(iv) The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the
related parties (As per Companies Act, 2013), which are repayable on demand or without specifying any terms
or period of repayments.

(v) No proceedings have been initiated or pending against the Company for holding any Benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vi) The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic returns
filed by the Company with such banks are in agreement with the books of accounts of the Company.

41 Leases

Company as a Lessee

The company has taken land, warehouses and sales offices across the country on lease for lease period ranging from
6-99 years. Company also has other assets on leases, the lease term here ranges from 2-9 Years.

Wherever the lease includes extension option and it is reasonably certain to exercise that option, the same is considered
for computing the lease term. In other cases, the term is limited to initial lease period. Lease term includes non-cancellable
period and expected lease period.

(vii) The Company has adhered to debt repayment and interest service obligations on time. "Wilful defaulter" related
disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is
not applicable.

(viii) There are no transactions with the companies whose names were struck off under section 248 of The Companies
Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31^st March 2026.

(ix) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies
have been filed. No registration or satisfaction is pending at the year ended 31^st March 2026.

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies
Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

(xi) a. The Company has issued Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) in

accordance with the applicable provisions of the Companies Act, 2013 and relevant rules thereunder.

b. A scheme of amalgamation of Sundaram Auto Components Limited (a wholly owned subsidiary) with the
company was duly approved by the competent authority in terms of Sections 230 to 232 of the Companies
Act, 2013. Apart from the above, no other scheme of arrangement has been approved during the year."

(xii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

(xiii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xiv) The Company has not operated in any crypto currency or Virtual Currency transactions

(xv) During the year the Company has not disclosed or surrendered, any income other than the income recognised
in the books of accounts in the tax assessments under Income Tax Act, 1961.

43 Segment Information

The Company identified two verticals viz (a) Automotive Vehicles & Parts and related investments and (b) Investment
held in Financial Services based on operations from which significant risks and rewards are derived. Chief Operating
Decision Maker (CODM) examines the risks and rewards of the entities'' performance in the above two verticals and
allocates the resources aligning with the Company''s strategy.

The Investments of the Company in TVS Credit Services Limited and TVS Motor Services Limited and other non-strategic
companies categorized as Financial Services.

46. Disclosure Pursuant to Ind As 103 " Business Combination" - Amalgamation of Sundaram
Auto Components Limited with TVS Motor Company Limited

The National Company Law Tribunal, Chennai Bench, has approved the Scheme of Amalgamation of Sundaram Auto
Components Limited (''SACL'' or the ''Transferor Company'') with TVS Motor Company Limited (''TVSM'' or the ''Transferee
Company'') vide order dated 6^th May 2026. The appointed date under the Scheme is 1^st April 2025.

During the financial year 2024-25, SACL entered into a Business Transfer Agreement under which its Injection Moulding
and Seating Business was transferred by way of a slump sale, following which SACL discontinued its operations.
Consequently, with the objective of simplifying the group structure and consolidating assets and liabilities, it was
decided to merge SACL with TVSM.

The Merger is accounted for under the Pooling of Interests method in accordance with Appendix C of Ind AS 103
Business Combinations of Entities under Common Control involving the following:

(i) All assets and liabilities have been recorded at their carrying values as appearing in the consolidated financial
statements of the Company.

(ii) The reserves of the SACL have been preserved and recorded by the Company in the same form and at the same
carrying amounts as appearing in the consolidated financial statements prior to the amalgamation. Any surplus
or deficit arising after giving effect to the above adjustments has been transferred to Capital Reserve, which is
disclosed separately with its nature and purpose.

(iii) Inter-company balances between the Company have been cancelled pursuant to the amalgamation.

(iv) Comparative financial information has been restated as if the amalgamation had occurred from the beginning
of the comparative period

The impact of the merger on the previous year included in these standalone results as under:

48 Corporate Social Responsibility

Expenditure incurred on Corporate Social Responsibility (CSR) activities:

(a) Gross amount required to be spent during the year is H55.99 crores (Previous year H39.55 crores)

(b) Amount spent during the year:

49 The Government of India notified on November 21, 2025, the four Labour Codes - the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions
Code, 2020 - consolidating existing labour laws. The entity has assessed the incremental impact of these changes
on the basis consistent with the Labour Codes, draft rules, FAQs and legal opinion. Considering the regulatory driven
non-recurring nature, the past period employee benefit liability has been disclosed under Exceptional Items in the
Statement of Profit and Loss for the year ended March 31, 2026.

47 Details of Loans Given, Investments Made and Guarantees Given

(Disclosure as per Section 186 of The Companies Act, 2013)

(a) Investments made - Refer Note 3

The Government of India is in the process of notifying related rules to the New Labour Codes and the impact of these
will be evaluated and appropriately accounted as and when notified.

50 Previous Year''s Figures have been regrouped wherever necessary to conform to the
Current Year''s classification.

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Mar 31, 2025

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges are valued using the closing price as at the end of the reporting period. The mutual funds are valued using the closing NAV.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values to be disclosed in the financial instruments that are recognised and measured at fair value and that are measured at amortised cost. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, preference shares and other non current investments included in level 3.

The company’s policy is to recognise transfers in and transfers out of fair value hierarchy levels as at the end of the reporting period.

During the reporting period, there are no transfers among the three levels.

(ii) Valuation technique used to determine fair value (Level 2)

Specific valuation techniques used to value financial instruments include:

• the use of quoted market prices or dealer quotes for similar instruments

• the fair value of interest rate swaps is calculated as the present value of estimated cash flows based on observable yield curves.

• the fair value of forward exchange contract and principal only swap is determined using forward exchange rate at the balance sheet date.

• the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(v) Valuation processes

Discount rates are determined using a capital asset pricing model to calculate a pretax rate that reflects current market assessments of the time value of money and the risk specific to the asset. Earnings growth factor of preference shares are based on cash flow projections of future earnings of the Company and unlisted equity securities are estimated based on market information for similar type of companies. Risk adjustments have been derived based on the market risk premium adjusted for companies relevant financial data.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for preference shares and other debt instruments are calculated based on cash flows discounted using effective interest rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a effective interest rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit.

Changes in bond: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an yield increase in the value of the plans’ bond holdings.

Inflation risks: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans’ liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

(iii) Defined contribution plans

The Company''s contribution to defined contribution plan i.e., provident fund of I 57.51 crores (previous year I 44.73 crores) has been recognised in the Statement of Profit and Loss.

34 TVS Motor Company Employee Stock Option Plan

The Company introduced TVS Motor Company Employee Stock Option Plan to provide equity-based incentives to the eligible employees of the Company. The plan is administered by the Nomination and Remuneration Committee of the Company through a Trust.

A maximum of 11,87,717 options may be granted under the Plan. Each option granted under the plan entitles the holder to one equity share of the Company at an exercise price, which is approved by the Nomination and Remuneration Committee (NRC).

As per the plan, NRC grants options to the employees of the Company. The vesting period of the option is one to ten years from the date of grant. Options granted under the Scheme can be exercised within a period of four years from the date of vesting.

Accordingly, NRC granted 3,51,000 options under the Plan and the Trust acquired shares from secondary market for the purpose of implementation of the Plan.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

Fair value measurement:

The fair value at grant date is determined using the Black-Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The key inputs used in Black-Scholes Model for calculating fair value of options under the scheme as on the date of grant are as follows:

The weighted average remaining contractual life of the options outstanding as of 31^st March 2025 was 4 months.

40 Contingent Liabilities and Commitments not Provided for Rupees in crores
Particulars	As at / Year Ended 31-03-2025	As at / Year Ended 31-03-2024
(a) Claims against the company not acknowledged as debts:
(i) Central Excise	23.90	23.89
(ii) GST	22.12	7.25
(iii) Service tax	0.95	0.95
(iv) Sales tax	-	2.00
(v) Guarantees given to bank/others for credit facility granted to subsidiary Companies	-	83.41
(vi) Income tax	39.98	46.85
The future cash flows on the above items are determinable only on receipt of the decisions / judgments that are pending at various forums / authorities. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.
(b) Other money for which the company is contingently liable:
On bills discounted with banks	330.98	250.99
(c) Commitments:
(i) Estimated amount of contracts remaining to be executed on capital account and not provided for	314.55	229.94
(ii) On Investments	0.00	1.88

41 Leases

Company as a Lessee

The company has taken land, warehouses and sales offices across the country on lease for lease period ranging from 6-99 years. Company also has other assets on leases, the lease term here ranges from 2-9 Years.

Wherever the lease includes extension option and it is reasonably certain to exercise that option, the same is considered for computing the lease term. In other cases, the term is limited to initial lease period. Lease term includes non-cancellable period and expected lease period.

Payment made towards short term leases during the year is I 87.84 Cr (Previous year: I 78.46 Cr)

Payment made towards Low value assets during the year is Nil (Previous year: Nil)

Payment relating to leases are disclosed in Cash flow statement

Income from sub-leasing of Right of use asset is I 0.39 Crs (Previous year: Nil)

42A Additional Regulatory Disclosures as Per Schedule iii of Companies Act, 2013

(i) The Title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

(ii) The Company does not have any investment property.

(iii) As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(iv) The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per Companies Act, 2013), which are repayable on demand or without specifying any terms or period of repayments.

(v) No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vi) The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic returns filed by the Company with such banks are in agreement with the books of accounts of the Company.

(vii) The company has adhered to debt repayment and interest service obligations on time. "Wilful defaulter" related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(viii) There are no transactions with the companies whose names were struck off under section 248 of The Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2025

(ix) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending at the year ended 31^st March 2025

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

(xi) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.

(xii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary

(xiii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(xiv) The Company has not operated in any crypto currency or Virtual Currency transactions

(xv) During the year the Company has not disclosed or surrendered, any income other than the income recognised in the books of accounts in the tax assessments under Income Tax Act, 1961.

42B Segment Information for the Year Ended 31-03-2025

The Company identified two verticals viz (a) Automotive Vehicles & Parts and related investments and (b) Investment held in Financial Services based on operations from which significant risks and rewards are derived. Chief Operating Decision Maker (CODM) examines the risks and rewards of the entities'' performance in the above two verticals and allocates the resources aligning with the Company’s strategy.

The Investments of the Company in TVS Credit Services Limited and TVS Motor Services Limited and other non-strategic companies categorized as Financial Services.

46 Previous Year''s Figures have been regrouped wherever necessary to conform to the Current Year''s classification.

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Mar 31, 2024

q) Provisions and contingent liabilities

i) Provision:

A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated. The estimated liability for product warranties is recorded when products are sold based on technical evaluation.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expenses.

ii) Contingent liabilities:

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability, are considered as contingent liabilities. Show cause notices are not considered as Contingent Liabilities unless converted into demand.

iii) Warranty:

Provision is made for estimated warranty claims in respect of vehicles sold which are still under warranty at the end of the reporting period. These claims are expected to be settled from the next financial year. Management estimates the provision based on historical warranty claim information; and any recent trends that may suggest future claims could differ from historic and the dues which are payable within 12 Months is classified as current and others are non-current.

r) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.

s) Leases

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Contracts may contain both lease and non-lease components. The Company allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of buildings, for which the Company is a lessee, it has elected not to separate lease and nonlease components and instead accounts for these as a single lease component.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable

• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date

• amounts expected to be payable by the Company under residual value guarantees

• the exercise price of a purchase option if the Company is reasonably certain to exercise that option, and

• payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, the company’s incremental borrowing rate is used, being the rate that

the Company would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the Company:

• where possible, uses recent third-party financing received by the Company as a starting point, adjusted to reflect changes in financing conditions since third party financing was received

• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Company which does not have recent third party financing, and

• makes adjustments specific to the lease, e.g. term, country, currency and security.

the Company is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the lease liability for each period. The carrying amount of lease liability is reduced by net lease payments (i.e. lease payments net off finance cost).

Variable lease payments that depend on sales are recognised in profit and loss in the period in which the condition that triggers those payments occurs.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before

the commencement date less any lease

incentives received

• any initial direct costs, and

• restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line basis as an expense in

profit and loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture.

t) Cash and Cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

u) Trade receivables

Trade receivables are measured at their transaction price on initial recognition, unless it contains a significant financing component or pricing adjustments embedded in the contract in which cases, it is recognised at fair value. Trade receivables are held with the objective of collecting the contractual cash flows and therefore are subsequently measured at amortised cost less allowance for expected credit loss.

v) Contract liabilities

A contract liability is the obligation to transfer goods to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the consideration is received. Contract liabilities are recognised as revenue when the Company performs under the contract.

w) Investments and Other financial assets

i) Classification

The Company classifies its financial assets in the following categories:

• Those to be measured subsequently at fair value (either through Fair Value Through Other Comprehensive Income (FVOCI), or Fair Value Through Profit or Loss (FVTPL)), and

• Those measured at amortized cost.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flow.

ii) Measurement

At Initial recognition, the Company measures a financial asset at its fair value plus transaction cost (in the case of a financial asset not at FVTPL) that are directly attributable to the acquisition of

the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit and loss.

Debt Instruments:

Subsequent measurement of debt instruments depends on the company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments.

Amortised Cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest, are measured at amortised cost. A gain or loss on debt instrument that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit and loss when the asset is de-recognised or impaired. Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit and loss.

Fair Value through profit or loss:

Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognised in profit and loss and presented in the statement of profit and loss in the period in which it arises. Interest income from these financial assets is included in other income.

Equity instruments:

The Company subsequently measures all investments in equity (except of the subsidiaries / associates) at fair value. Where the company’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent

reclassification of fair value gains and losses to profit and loss.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately.

Where the Company elects to measure fair value through profit or loss, changes in the fair value of such financial assets are recognised in the statement of profit and loss.

Investment in subsidiaries / associates:

Investment in subsidiaries / associates are measured at cost less provision for impairment.

iii) Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been significant increase in credit risk. Note 30 details how the company determines whether there has been a significant increase in credit risk.

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected credit losses to be recognised from initial recognition of the receivables.

iv) Derecognition of financial assets

A financial asset is derecognised only when:

a) t he Company has transferred the rights to receive cash flows from the financial asset or

b) the Company retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred a financial asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized, if the Company has not retained control of the financial asset. Where the company retains control of the financial asset, the

asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Interest Income:

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying value of a financial asset. While calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options), but does not consider the expected credit losses.

x) Financial Liabilities:

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included under ‘Finance costs’.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability.

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit and loss.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

y) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred.

z) Current and Non-current classification

The Company presents assets and liabilities in the balance sheet based on current / noncurrent classification.

Cash or cash equivalent is treated as current, unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

In respect of other assets, it is treated as current when it is:

• expected to be realised or intended to be sold or consumed in the normal operating cycle

• held primarily for the purpose of trading

• expected to be realised within twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

• it is expected to be settled in the normal operating cycle

• it is held primarily for the purpose of trading

• it is due to be settled within twelve months after the reporting period, or

• there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

aa) Earnings Per Share (EPS):

Basic earnings per share is computed by dividing the ‘profit attributable to ordinary equity shareholders’ by the weighted average number of equity shares outstanding during the year/period. Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

ab) Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

34 Related Party Disclosure

(a) (i) Related parties and their relationship where control exists

Holding company:

TVS Holdings Limited, Chennai (Formerly known as Sundaram-Clayton Limited)

Subsidiaries:

Sundaram Auto Components Limited, Chennai

TVS Digital Limited, Chennai (Formerly known as TVS Housing Limited, Chennai)

TVS Motor Services Limited, Chennai

TVS Credit Services Limited, Chennai

TVS Electric Mobility Ltd., Chennai

TVS Motor Company (Europe) B.V., Amsterdam

TVS Motor (Singapore) Pte. Limited, Singapore (TVSM Singapore)

PT TVS Motor Company Indonesia, Jakarta Harita ARC Services Private Limited, Chennai

Harita Two Wheeler Mall Private Limited, Chennai (Formerly known as TVS Two Wheeler Mall Private Limited, Chennai) TVS Housing Finance Private Limited, Chennai The GO Corporation, Switzerland (GO AG),

Swiss E-Mobility Group (Holding) AG, Switzerland (SEMG)

The Norton Motorcycle Co Limited, UK TVS Digital Pte Ltd., Singapore EBCO Limited, UK Celerity Motor GmbH, Germany

EGO Movement Stuttgart, GmbH, Germany (Subsidiary of GO AG)

Swiss E-Mobility Group (Schweiz) AG Switzerland Colag E-Mobility GmBH, Germany, Germany Alexand''Ro Edouard''O Passion Velo Sarl, Switzerland

Associate company:

Ultraviolette Automotive Private Limited, Bengaluru

Tagbox Solutions Private Limited, Bengaluru [Upto 30^th March 2024]

DriveX Mobility Private Limited, Coimbatore

Indian Foundation for Quality Management, Bengaluru [From 15^th Feb 2024]

ION Mobility Private Limited, Singapore [From 14^th March 2024]

Emerald Haven Realty Ltd., Chennai (Upto 14^th June 2023)

(ii) Other related parties and their relationship where transaction exists

Associate / Joint venture of holding / ultimate holding / subsidiary / fellow subsidiary company:

Predictronics Corp, USA

Emerald Haven Realty Ltd., Chennai (From 16^th June 2023)

Emerald Haven Development Limited, Chennai

41 Leases

Company as a Lessee

The company has taken land, warehouses and sales offices across the country on lease for lease period ranging from 6-99 years. Company also has other assets on leases, the lease term here ranges from 2-9 Years.

Wherever the lease includes extension option and it is reasonably certain to exercise that option, the same is considered for computing the lease term. In other cases, the term is limited to initial lease period. Lease term includes non-cancellable period and expected lease period.

Payment made towards short term leases during the year is I 78.46 Cr (Previous year: I 45.34 Cr)

Payment made towards Low value assets during the year is Nil (Previous year: Nil)

Payment relating to leases are disclosed in Cash flow statement

Income from sub-leasing of Right of use asset is I NIL (Previous year: I 7.47 Cr)

42 Additional Regulatory Disclosures as Per Schedule iii of Companies Act, 2013

(i) The Title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

(ii) The Company does not have any investment property.

(iii) As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(iv) The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per Companies Act, 2013), which are repayable on demand or without specifying any terms or period of repayments.

(v) No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vi) The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic returns filed by the Company with such banks are in agreement with the books of accounts of the Company.

(vii) The company has adhered to debt repayment and interest service obligations on time. "Wilful defaulter" related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(viii) There are no transactions with the companies whose names were struck off under section 248 of The Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2024.

(ix) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending at the year ended 31^st March 2024.

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

(xi) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.

(xii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

(xiii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xiv) The Company has not operated in any crypto currency or Virtual Currency transactions.

(xv) During the year the Company has not disclosed or surrendered, any income other than the income recognised in the books of accounts in the tax assessments under Income Tax Act, 1961.

46 Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.

PROF. SIR RALF DIETER SPETH SUDARSHAN VENU K.N. RADHAKRISHNAN As per our report annexed

Chairman Managing Director Director & Chief Executive Officer For Sundaram & Srinivasan

DIN: 03318908 DIN: 03601690 DIN: 02599393 Chartered Accountants

Firm Regn. No.004207S

S USHA

Place: Chennai K. GOPALA DESIKAN K.S.SRINIVASAN Partner

Date: 8^th May 2024 Chief Financial Officer Company Secretary Membership No.:211785

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Mar 31, 2022

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the end of the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, preference shares and other non current investments included in level 3.

There are no transfers among the three levels.

The company''s policy is to recognise transfers in and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value (Level 2)

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of interest rate swaps is calculated as the present value of estimated cash flows based on observable yield curves.

- the fair value of forward exchange contract and principal only swap is determined using forward exchange rate at the balance sheet date.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(v) Valuation processes

Discount rates are determined using a capital asset pricing model to calculate a pretax rate that reflects current market assessments of the time value of money and the risk specific to the asset. Earnings growth factor of preference shares are based on cash flow projections of future earnings of the Company and unlisted equity securities are estimated based on market information for similar types of companies. Risk adjustments have been derived based on the market risk premium adjusted for companies relevant financial data.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for preference shares and other debt instruments were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity ranging 30 to 180 days.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

Rupees in crores

31 CAPITAL MANAGEMENT (a) Risk management

The Company''s objectives when managing capital are to

• safeguard our ability to continue as a going concern, so that we can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio: Net debt (total borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the balance sheet). The company''s strategy is to maintain an optimum gearing ratio. The gearing ratios were as follows:

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(ii) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit.

Changes in bond: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an yield increase in the value of the plans'' bond holdings.

Inflation risks: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans'' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

(iii) Defined contribution plans:

The Company''s contribution to defined contribution plan i.e., provident fund of $ 28.63 crores (previous year $ 17.91 crores) has been recognised in the Statement of Profit and Loss.

41 LEASES AS A LESSEE

The Company has taken land, warehouses and sales offices across the country on lease for lease period ranging from 6-99 years.

Company also has other assets on leases, the lease term here ranges for about 5 years.

Wherever the lease includes extension option and it is certain, the same is considered for computing the lease term. In rest of the

cases, the term is limited to initial lease period. Lease term includes non-cancellable period and expected lease period.

Payment made towards short term leases during the year is $ 37.82 Cr (Previous year: $ 32.98 Cr)

Payment made towards Low value during the year is Nil (Previous year: Nil)

Payment relating to leases are disclosed in Cash flow statement

Income from sub-leasing of Right of use asset $ 7.08 Cr (Previous year: $ 3.88 Cr)

42 ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF COMPANIES ACT, 2013

(i) The Title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

(ii) The Company does not have any investment property.

(iii) As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(iv) The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per Companies Act, 2013) , which are repayable on demand or without specifying any terms or period of repayments.

(v) No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vi) The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic returns filed by the Company with such banks are in agreement with the books of accounts of the Company.

(vii) The Company has adhered to debt repayment and interest service obligations on time. Wilful defaulter related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(viii) There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the year ended 31^st March 2022.

(ix) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending at the year ended 31^st March 2022.

(x) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

(xi) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.

(xii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary

(xiii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(xiv) The Company has not operated in any crypto currency or Virtual Currency transactions

(xv) During the year the Company has not disclosed or surrendered, any income other than the income recoginsed in the books of accounts in the tax assessments under Income Tax Act, 1961.

46 BORROWING COST CAPITALISED

Borrowing cost capitalised during the year $ nil (Last year $ 12.26 crores)

The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the interest rate of 3 Month USD LIBOR plus Margin.

47 Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.

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Mar 31, 2021

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the end of the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, preference shares and other non current investments included in level 3.

There are no transfers among the three levels.

The company''s policy is to recognise transfers in and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value (Level 2)

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of interest rate swaps is calculated as the present value of estimated cash flows based on observable yield curves.

- the fair value of forward exchange contract and principal only swap is determined using forward exchange rate at the balance sheet date.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(v) Valuation processes

Discount rates are determined using a capital asset pricing model to calculate a pretax rate that reflects current market assessments of the time value of money and the risk specific to the asset. Earnings growth factor of preference shares are based on cash flow projections of future earnings of the Company and unlisted equity securities are estimated based on market information for similar types of companies. Risk adjustments have been derived based on the market risk premium adjusted for company''s relevant financial data.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(ii) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit.

Changes in bond: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an yield increase in the value of the plans'' bond holdings.

Inflation risks: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans'' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

(iii) Defined contribution plans:

The Company''s contribution to defined contribution plan i.e., provident fund of $ 17.91 crores (previous year $ 16.83 crores) has been recognised in the Statement of Profit and Loss.

BORROWING COST CAPITALISED

Borrowing cost capitalised during the year $ 12.26 crores (Last year $ 12.38 crores)

The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the interest rate of 3 Month USD LIBOR plus Margin.

LABOUR CODE - TRANSITION RELATED

The Code on Social Security, 2020 which received the President''s assent on 28^th September 2020 subsumes nine laws relating to Social security, retirement and employee benefits, including the Provident Fund and Gratuity. The effective date of the Code and rules thereunder are yet to be notified. The impact of the changes, if any, will be assessed and recognised post notification of the relevant provisions.

MATERIAL CHANGES AND COMMITMENTS

Consequent to the outbreak of the CoVID-19 pandemic, the Indian government announced a lockdown in March 2020. Subsequently, the national lockdown was lifted by the government. Due to second wave of CoVID-19, regional lockdowns continue to be implemented in areas where significant number of CoVID-19 cases exists.

Based on assessment of the impact of CoVID-19 on the operations of the Company and ongoing discussions with customers, vendors and service providers, the Company is confident of obtaining regular supply of raw materials and components, resuming supply chain logistics and serving customers.

The Company has considered the possible effects of CoVID-19 on the carrying amounts of Property, Plant and Equipment, Investments, Inventories, Trade Receivable and Other Current Assets. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company, as at the date of approval of the financial results, has used external and internal sources of information / Indicators to estimate the future performance of the Company. Based on current estimates the Company expects the carrying amount of these assets to be recovered. The impact of the second wave of CoVID-19 on the Company''s financial results may differ from that estimated as at the date of approval of these results.

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Mar 31, 2019

(c)(i) Rights and preferences attached to equity share:

Every shareholder is entitled to such rights as to attend and vote at the meeting of the shareholders, to receive dividends distributed and also has a right in the residual interest of the assets of the company. Every shareholder is also entitled to right of inspection of documents as provided in the Companies Act, 2013.

(ii) There are no restrictions attached to equity shares.

Details of securities created:

(i) ECB loan from Bank II - Exclusive charge over assets procured out of proceeds of the loan, charge creation is in the process.

(ii) FCNRB Loan from Bank - Exclusive charge over assets procured out of proceeds of the loan.

(iii) Soft loan - State owned corporation viz., SIPCOT - First charge on the specific plant and equipment and also secured by equitable mortgage created by way of deposit of title deeds of land.

** Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information received by the management. The entire closing balance represents the principal amount payable to these enterprises. There are no interests due or outstanding on the same.

# Balances include balances due to related parties [Refer Note 31(c)(ii)].

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the end of the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, preference shares and other non current investments included in level 3.

There are no transfers among the three levels.

The company''s policy is to recognise transfers in and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Valuation technique used to determine fair value (Level 2)

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of interest rate swaps is calculated as the present value of estimated cash flows based on observable yield curves.

- the fair value of forward exchange contract and principal only swap is determined using forward exchange rate at the balance sheet date.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(v) Valuation processes

Discount rates are determined using a capital asset pricing model to calculate a pretax rate that reflects current market assessments of the time value of money and the risk specific to the asset. Earnings growth factor of preference shares are based on cash flow projections of future earnings of the Company and unlisted equity securities are estimated based on market information for similar types of companies. Risk adjustments have been derived based on the market risk premium adjusted for companies relevered financial data.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for preference shares and other debt instruments were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

1. FINANCE RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity ranging from 30 to 180 days.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments and the impact on other components of equity arises from foreign forward exchange contracts designated as cash flow hedges.

(ii) Interest rate risk

Domestic INR borrowings are based on fixed rate of interest. Normally, for short term borrowings the marginal cost of lending rate of the bank is followed. Whenever, Company resorts to short term borrowing through Commercial Paper the rate of interest is fixed in advance. In respect of foreign currency borrowings for longer period the interest rates are covered through interest rate swaps (IRS).

(iii) Price Risk

The company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. To manage its price risk from investments in equity securities, the Company diversifies its portfolio. The impact of the changes in price risk is not material.

(D) Impact of hedging activities

(i) Disclosure of effects of hedge accounting on financial position

(a) Disclosure of effects of hedge accounting on financial position as at 31-03-2019

2 CAPITAL MANAGEMENT

(a) Risk management

The Company''s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The Company has created an Employees'' Group Gratuity Fund which has taken a Group Gratuity Assurance Scheme with the Life Insurance Corporation of India. Company''s contributions are based on actuarial valuation arrived at the end of each year and charged to Statement of Profit and Loss.

Assumptions regarding future mortality for pension are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring at age 58.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(ii) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk with derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.

Changes in bond: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an yield increase in the value of the plans'' bond holdings.

Inflation risks: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans'' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

(iii) Defined contribution plans:

The Company''s contribution to defined contribution plan i.e., provident fund of Rs.15.06 crores (previous year Rs. 14.25 crores) has been recognised in the Statement of Profit and Loss.

On 28^th February 2019 Supreme Court (SC) gave a judgement on components / allowances paid to employees that need to be taken into account while computing an employer''s contribution of provident fund under the EPF Act. There are numerous interpretative issues relating to the components needs to be considered for the above calculation. The Company is in the process of evaluating the method of computation of its PF contribution and would record any further effect in its financial statements, on receiving further clarification on the subject.

3. REVENUE FROM CONTRACTS WITH CUSTOMERS

A Disaggregated revenue:

Revenue from contracts with customers are disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company identifies the product lines, amongst others to indicate the factors as mentioned above. The details of revenue from contracts with customers on the basis of various product lines are as under :

B The operations of the Company relate to only one segment viz., automotive vehicle and parts. Thus, the information on the relationship between disaggregated revenue under Ind AS 115 and for reportable segment under Ind AS 108 is not required.

C Reconciliation of contracts with customers:

Payment is received in advance towards contracts entered with customers, and is recognised as a contract liability. As and when the performance obligation is met, the same is recognized as revenue.

D Transaction price allocated to the remaining performance obligations:

The Company''s contracts with customers are short term (i.e., the performance obligations are expected to be met within one year or less). Therefore, taking the practical expedient, the details on transaction price allocated to the remaining performance obligations are not disclosed.

E Reconciliation of revenue with contract price:

F Impact of following earlier standard against Ind AS 115

On adoption of Ind AS 115 as compared to Ind AS 18, "Revenue from operations" is reduced by Rs.410.36 crores due to freight charges being netted off against revenue, which leads to an equivalent reduction in "Other expenses", during the year.

4. CORPORATE SOCIAL RESPONSIBILITY

Expenditure incurred on Corporate Social Responsibility (CSR) activities:

(a) Gross amount required to be spent during the year is Rs.13.09 crores (last year Rs.10.70 crores)

5. BORROWING COST CAPITALISED

Borrowing cost capitalised during the year Rs. 5.86 crores (last year Nil).

6. NON-ADJUSTING EVENTS AFTER BALANCE SHEET DATE

Pursuant to NCLT''s Order dated 16.4.2019 TVS Motor Services Limited (TVS MS) will be transferring its investment in TVS Credit Services Limited (TVS CS) equity shares to the Non-cumulative Redeemable Preference Shares holder viz., the Company towards redemption. After such transfer of TVS CS equity shares, the Company will directly hold 85.3% of equity shares in TVS CS and consequently, the Preference Shares held in TVS MS shall stand cancelled.

7. PREVIOUS YEAR''S FIGURES HAVE BEEN REGROUPED WHEREVER NECESSARY TO CONFORM TO THE CURRENT YEAR''S CLASSIFICATION.

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Mar 31, 2018

1. FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as and when calculating the defined benefit liability recognized in the balance sheet.

(ii) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk with derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The company intends to maintain the above investment mix in the continuing years.

Changes in bond: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an yield increase in the value of the plans’ bond holdings.

Inflation risks: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans’ liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy. The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within this framework, The Company’s ALM objective is to match assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency. The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets in 2018 consists of Government and Corporate bonds, although the Company invests in equities, cash and mutual funds. The Company believes that equities offer the best returns over the long term with an acceptable level of risk.

(iii) Defined contribution plans:

The Company’s contribution to defined contribution plan viz., provident fund, of Rs. 14.25 crores (previous year Rs.11.47 crores) has been recognized in the Statement of Profit and Loss.

(a) (i) Related parties and their relationship where control exists

Holding company:

Sundaram-Clayton Limited, Chennai

Ultimate holding company:

T V Sundram Iyengar & Sons Private Limited, Madurai

Subsidiaries:

Sundaram Auto Components Limited, Chennai

TVS Housing Limited, Chennai

TVS Motor Services Limited, Chennai

TVS Credit Services Limited, Chennai

Harita Collection Services Private Limited, Chennai

Harita ARC Services Private Limited, Chennai

TVS Micro Finance Private Limited, Chennai

TVS Commodity Financial Solutions Private Limited, Chennai

TVS Two Wheeler Mall Private Limited, Chennai

TVS Housing Finance Private Limited, Chennai

TVS Motor (Singapore) Pte. Limited, Singapore

TVS Motor Company (Europe) B.V, Amsterdam

PT. TVS Motor Company Indonesia, Jakarta

Sundaram Holding USA Inc, USA

Green Hills Land Holding LLC, USA

Component Equipment Leasing LLC, USA

Sundaram-Clayton USA LLC, USA (Formerly known as Workspace Project LLC) Premier Land Holding LLC, USA

Associate company:

Emerald Haven Realty Limited, Chennai (Formerly known as Green Earth Homes Limited)

(ii) Other related parties and their relationship where transaction exists

Fellow subsidiaries:

TVS Electronics Limited, Chennai Southern Roadways Limited, Madurai Sundaram Industries Private Limited, Madurai Lucas-TVS Limited, Chennai Lucas Indian Service Limited, Chennai TVS Auto Assist (India) Limited, Chennai TVS Training and Services Limited, Chennai

Associate I Joint venture of holding I subsidiary I fellow subsidiary company:

Brakes India Private Limited, Chennai TVS Srichakra Limited, Madurai Wheels India Limited, Chennai Sundram Fasteners Limited, Chennai India Nippon Electricals Limited, Chennai Sundaram Brake Linings Limited, Chennai TVS Auto Bangladesh Limited, Dhaka TVS Lanka Private Limited, Colombo

TVS Logistics Services Limited, Chennai Harita Techserv Limited, Chennai Subsidiaries of associate I joint venture:

Upasana Engineering Limited, Chennai TVS Dynamic Global Freight Services Limited, Chennai TVS Commutation Solutions Limited, Chennai Enterprises in which directors are interested:

TVS Agro Products Private Limited (Formerly known as TVS Organics Private Limited) Designo Lifestyle Solutions Private Limited Dua Associates

Dua Consulting Private Limited McCann-Erickson (India) Private Limited Key Management personnel

Mr Venu Srinivasan, Chairman & Managing Director Mr Sudarshan Venu, Joint Managing Director

Relative(s) of the Key Management personnel Dr. Lakshmi Venu, Director Enterprise over which key management personnel and their relative have significant influence : Harita-NTI Limited, Chennai

2. CORPORATE SOCIAL RESPONSIBILITY

Expenditure incurred on Corporate Social Responsibility (CSR) activities:

(a) Gross amount required to be spent during the year is Rs.10.70 crores (last year Rs.9.06 crores)

(b) Amount spent during the year:

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Mar 31, 2017

1 FINANCE RISK MANAGEMENT

The company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements

2 CAPITAL MANAGEMENT

(a) Risk management

The company’s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total ‘equity’ (as shown in the balance sheet)

The company’s strategy is to maintain an optimum gearing ratio. The gearing ratios were as follows:

The company also monitors Interest coverage ratio :

Company’s earnings before interest and taxes (EBIT) divided by Interest

The Company’s strategy is to maintain a optimum interest coverage ratio The Interest coverage ratio were as follows:

3 TRANSITION TO IND AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note No. 1 have been applied in preparing the financial statements for the year ended 31-03-2017, the comparative information presented in these financial statements for the year ended 31-03- 2016 and in the preparation of opening Ind AS balance sheet as at 01-04-2015 (The Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position and financial performance is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

A.1.1 Deemed cost - Property, Plant and Equipment and Intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 - Intangible Assets.

Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at previous GAAP carrying value.

A.1.2 Deemed cost - Equity Investments

Ind AS 101 permits first time adopter to elect to measure the investments in subsidiaries, associates and joint venture at cost determined in accordance with Ind AS 27 or deemed cost. Deemed cost for the purpose of transition shall mean fair value of the investment at the entity’s date of transition to Ind AS or previous GAAP carrying amount at that date (previous GAAP cost). A first-time adopter may choose either fair value or Previous GAAP carrying amount in each subsidiary, joint venture or associate that it elects to measure using a deemed cost.

Accordingly, the company has elected to measure equity investments in overseas subsidiaries at fair value and investments in domestic subsidiaries and associates at previous GAAP carrying cost.

A.1.3 Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The company has elected to apply this exemption for its investment in equity investments.

A.1.4 Business Combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date.

The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 01-04-2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI;

- Impairment of financial assets based on expected credit loss model.

A.2.2 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

A.2.3 Government Loans

A first-time adopter has the option to apply the requirements in Ind AS 109 (Financial Instruments) and Ind AS 20 (Accounting for Government Grants and Disclosure of Government Assistance) prospectively to government loans existing at the date of transition to Ind AS and shall not recognise the corresponding benefit of the government loan at a below-market rate of interest as a government grant. Accordingly the Company has elected to apply the above option to Sales tax deferral loans which continue to be valued at previous GAAP value.

A.2.4 Hedge Accounting

The Company had designated various hedging relationships as cash flow hedges under the previous GAAP On the date of transition to Ind AS entity had assessed that all the designated hedging relationship qualifies for hedge accounting as per Ind AS 109. Consequently, the Company continues to apply hedge accounting on and after the date of transition to Ind AS.

B. Notes to first-time adoption

Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31-03-2016 increased by Rs.11.84 crores. There is no impact on the total equity as at 31-03-2016.

Assumptions regarding future mortality for pension and medical benefits are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring at age 58.

(i) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(ii) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk with derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The Company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.

Changes in bond: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an yield increase in the value of the plans’ bond holdings.

Inflation risks: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans’ liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy. The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within this framework, the Company’s ALM objective is to match assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency. The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets in 2017 consists of Government and Corporate bonds, although the

Company also invests in equities, cash and mutual funds. The Company believes that equities offer the best returns over the long term with an acceptable level of risk.

(iii) Defined contribution plans:

The Company’s contribution to defined contribution plan i.e., provident fund of Rs. 11.47 crores (previous year Rs.10.13 crores) has been recognised in the Statement of Profit and Loss.

4 CORPORATE SOCIAL RESPONSIBILITY

Expenditure incurred on Corporate Social Responsibility (CSR) activities:

(a) Gross amount required to be spent during the year is Rs.9.06 crores (last year Rs.7.15 crores)

(b) Amount spent during the year:

5 Previous year’s figures have been regrouped wherever necessary to conform to the current year’s classification.

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Mar 31, 2015

1 (a) Defined contribution plans:

The Company''s contribution to defined contribution plan i.e., provident fund of Rs. 10.51 crores (last year Rs.10.76 crores) has been recognised in the Statement of Profit and Loss.

2 The Company operates in only one segment viz., automotive vehicles.

3 (a) Related parties and their relationship for the financial year 2014-15:

Notes:

(a) The above loans are subject to repayment schedule as agreed between the Company and its loanee. The loans are repayable within seven years.

(b) Investment by the loanee in the shares of the parent company and subsidiary company when the Company has made a loan or advance in the nature of loan - Nil.

(c) The subsidiary companies listed above also fall under the category of company in which Directors of the Company are interested.

4 During the year ended 31st March 2015, in accordance with Part A of Schedule II to the Companies Act, 2013, the management, based on Chartered Engineeer''s technical evaluation, has reassessed the remaining useful life of tangible fixed assets with effect from 1st April 2014. As a result of the same, depreciation for the year is higher by Rs.6.02 crores. For tangible fixed assets that had completed useful life as at 1st April 2014, the carrying amount of Rs.6.82 crores has been adjusted to reserves.

5 Expenditure incurred on Corporate Social Responsibility (CSR) activities is Rs.6.40 crores.

6 Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.

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Mar 31, 2012

(a) (i) Rights and preferences attached to equity share:

Every shareholder is entitled to such rights as to attend the meeting of the shareholders, to receive dividends distributed and also has a right in the residual interest of the assets of the Company. Every shareholder is also entitled to right of inspection of documents as provided in the Companies Act, 1956.

(ii) There are no restrictions attached to equity shares.

Details of securities created:

(i) External Commercial Borrowings secured by exclusive charge by way of hypothecation of specific movable properties including movable plant and equipment.

(ii) Term loans

(a) First and exclusive charge on specific plant and equipment.

(b) Charge on pari-passu basis on the movable plant and equipment, spares, tools and accessories and other movables, both present and future situated in all plants, with the existing term loan lenders.

(iii) Soft loan - State owned corporation viz., SIPCOT

First charge on the specific plant and equipment and also secured by equitable mortgage created by way of deposit of title deeds of lands.

1 CONTINGENT LIABILITY NOT PROVIDED FOR:

(a) On counter guarantee given to banks 22.28 14.44

(b) On letters of credit 97.21 94.50

(c) On guarantee to Housing Development Finance Corporation Limited, Mumbai, on loans granted to employees of the Company 1.25 1.25

(d) On bills discounted with banks 31.08 13.62

(e) Capital commitment towards capital expenditure 58.92 58.84

(f) On obligation arising out of agreements facilitating credit to a company 41.66 41.66 (g) On obligation arising out of agreements facilitating credit to subsidiary company (PT.TVS Motor Company Indonesia, Jakarta) 53.88 53.88

(h) On import of capital goods under Export Promotion Capital Goods Scheme 19.63 14.64

Notes: (a) The above loans are subject to repayment schedule as agreed between the Company and its loanee.

The loans are repayable within seven years.

(b) All the above loans carry interest at agreed rates which are not less than the interest stipulated in section 372A of the Companies Act, 1956.

(c) Investment by the loanee in the shares of the parent company and subsidiary company when the Company has made a loan or advance in the nature of loan - Nil.

(d) The subsidiaries and associate companies listed above also fall under the category of company in which Directors of the Company are interested.

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Mar 31, 2011

(i) Provisions

In respect of warranty obligations, provision is made in accordance with terms of sale of vehicles vide schedule XIV (c) to the Balance Sheet.

(ii) Contingent liabilities

The amount for which the Company is contingently liable is disclosed in note no. 11.

(iii) Contested liabilities are detailed in note no. 12. 2 Share capital

Authorised share capital increased to Rs.50 crores from Rs.25 crores on account of bonus equity shares issued on 10th September, 2010.

Sundaram-Clayton Limited, Chennai holds 4,20,00,000 (last year 2,10,00,000) Equity shares of Re.1/- each while its wholly owned subsidiary Anusha Investments Limited, Chennai holds 23,06,82,786 (last year 11,53,41,393) Equity shares of Re.1/- each. This aggregates to 57.40% (last year 57.40%) of the share capital of the Company.

3 (a) Amount of loan payable within one year:

(b) Details of securities created for Loans:

BANKS

(i) External Commercial Borrowings secured by exclusive charge by way of hypothecation of specific moveable properties including moveable plant and machinery located at Mysore Plant.

(ii) Rupee Term loans

(a) First and exclusive charge on specific plant and machineries located at Hosur plant.

(b) Charge on pari-passu basis on the movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future situated in all plants, with the existing term loan lenders.

(iii) Cash credit facilities

First charge by way of hypothecation and / or pledge of current assets viz., stocks of raw materials, semi finished and finished goods, stores and spares not relating to plant and machinery, bills receivable,book debts and all other movable located in all plants.

OTHERS

(iv) Soft loan

First charge on the specific plant and machineries located at Hosur Plant and also secured by equitable mortgage created by way of deposit of title deeds of lands admeasuring 3.78 acres situated at Kothakondapalli, admeasuring 51.58 acres situated at Motham Agraharam, and admeasuring 11.98 acres situated at Mookandapalli - villages in Harita, Hosur, Krishnagiri district, in the State of Tamil Nadu.

4 Land

Title deed in respect of land acquired near Ahmedabad in Gujarat at a cost of Rs.0.01 crore is yet to be received from the registering authority.

During the year, 3 acres and 24 guntas of lands were converted from leasehold to freehold.

5 Miscellaneous expenditure not written off

(a) New product launch expenses carried forward from earlier years upto 31-03-2009 are charged off over 36 months. On and from the year ended 31-03-2010, new product launch expenses are charged off fully in the year of incurring such expenditure.

(b) Expenditure incurred in raising External Commercial Borrowings is being written off over the period of the loan.

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Mar 31, 2010

1 Share capital

Sundaram-Clayton Limited, Chennai holds 2,10,00,000 (last year 2,10,00,000) equity shares of Re. 1/- each while its wholly owned subsidiary Anusha Investments Limited, Chennai holds 11,53,41,393 (last year 11,53,41,393) equity shares of Re. 1/- each. This aggregates to 57.40% (last year 57.40%) of the share capital of the Company.

2 Miscellaneous expenditure not written off

(a) New product launch expenses carried forward from earlier years is written off over 36 months. However, new product launch expenses incurred during this year are fully written off. Accounting Standard 26 is not applicable as it does not create any intangible asset or a resource.

(b) Expenditure incurred in raising external commercial borrowings is being written off over the period of the loan

As at/ As at/

Year ended Year ended

31-03-2010 31-03-2009

3 Contingent liability not provided for:

(a) On counter guarantee given to banks 0.46 0.72

(b) On letters of credit 77.32 34.63

(c) On guarantee to Housing Development Finance Corporation Limited, Mumbai, on loans granted to employees of the Company 1.25 1.25

(d) On bills discounted with banks 11.08 77.22

(e) Capital commitments towards Capital expenditure 5.01 5.87

(f) On obligation arising out of agreements facilitating credit to a company which was an associate company upto 03.03.2010. 16.66 41.50

(g) On obligation arising out of agreements facilitating credit to subsidiary company (PT. TVS Motor Company Indonesia) 53.88 60.88

4 Previous years figures have been regrouped wherever necessary to conform to the current years classification.