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Notes to Accounts of TVS Motor Company Ltd.

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.


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.


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.


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.

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