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Notes to Accounts of TVS Srichakra Ltd.

Mar 31, 2015

1 Rights, preferences and restrictions attached to shares -

Equity shares - The Company has one class of equity share having a par value of Rs. 10/- each. Each share- holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. Each shareholder also has a residual interest in the assets of the Company in proportion to their shareholding.

2 Additional Information :

Details of Security for Secured Loans

a) Term Loan Availed from State Bank of India is secured by exclusive first charge on the assets created out of the term loans including 1) Equitable Mortgage of Lease hold rights over 28424 Sq mt plot of land, Plot No 7, Sector I, Industrial Area, I.I.E Pant Nagar, Uttam Singh Dist, Uttarakhand and buildings thereon, belonging to the Company and 2) Equitable mortgage over Land (1.90 acres) and Building at Survey No. 519 / IB2, located at Narasingampatti Village, Madurai.

b) Term Loan from Karur Vysya Bank Ltd., is secured by hypothecation of Specific Plant & Machinery located at Pant Nagar, Uttrakhand as well as Specific Plant and Machinery located atVellaripatti Village, Madurai.

c) Term Loan from Sundaram Finance Ltd., is secured by hypothecation of Specific Plant & Machinery located at Pant Nagar, Rudrapur, Uttrakhand as well as Specific Plant and Machinery located at Vellaripatti Village, Madurai.

d) Term Loan from DBS Bank is secured by hypothecation of Specific Plant & Machinery located at Vellaripatti Village,Madurai.

3 SHORT TERM BORROWINGS

Additional Information :

a. Details of Security for Secured Loans

Working Capital facilities availed from State Bank of India are secured by a first charge by way of hypothecation of Stock of Raw Materials, Stores, Work in Progress, Finished goods and Book Debts.

Working Capital facilities are also secured through a second charge on the assets created out of the term loans including:

1. EM of Lease hold rights over 28424 Sq mt plot of land, Plot No.7, Sector I, Industrial Area, I.I.E, Pant Nagar, Uttam Singh Dist and buildings thereon, Uttrakhand belonging to the Company and

2. EM over Land [1.90 acres] and Buildings at S No. 519 / 1B 2 Narasingampatti Village, Therkutheru, Melur Taluk, Madurai District belonging to the Company.

4 The company values Raw materials,Work in progress, Stores & Spares by applying weighted average price method. In respect of Raw materials, Cost consists of Material cost, cess, duties & Freight. In respect of Work in progress cost consist of Material cost, Labour and other appropriate overheads.

5 i) All tangible assets are depreciated under the straight line method by adopting useful life specified in Schedule II of the Companies Act, 2013, except on certain category of assets for which the company has re-assessed the same, based on Chartered Engineer''s technical evaluation in accordance with Part A of Schedule II to the Companies Act, 2013. Assets costing Rs.5000 or below acquired during the year are considered not material and are depreciated in full retaining Re.1 per asset. Consequent to the re-assessment of the useful life of assets based on technical evaluation and depreciating assets costing Rs.5000 or below acquired during the year in full retaining Re.1 per asset, depreciation charged is lower by Rs.0.74 Crores.

ii) The useful life other than that described in Schedule II adopted are furnished below.

Category of Plant & Machinery No of Years

Plant & Machinery other than Gen set 20

Moulds / Trolley / Weighing balances / Drums / PCI Stand /

Storage stand / Motors / Pumps 6

iii) A sum of Rs.3.56 Crores towards transitional provisions in respect of assets whose useful life is already exhausted as on 01.04.2014 has been charged to statement of profit and loss.

iv) The company amortizes intangible assets taking into consideration the useful life based on the estimates made by the management. Where the management considers that an intangible asset does not have a value as at the end of the accounting year, such intangible asset is fully amortized. Consequent to the above, the amount amortized is higher by Rs.1.81 Crores.

6 Included under Rates & Taxes is a sum of Rs.11.99 Crores towards sales tax relating to prior years.

7 The company manufactures and sells Two wheeler,Three wheeler, Industrial, Agricultural and Farm Tyres as well as Knobs for direct application.

Rs. in Crores

31.3.2015 31.3.2014

8 Contingent Liabilities not provided for:

a) Estimated amount of contracts remaining to be executed on capital account 53.96 10.93

b) On Letters of Credit opened by 27.77 63.23 Company''s Bankers

c) Excise Duty under Dispute 2.06 2.47

d) Sales Tax under Dispute 0.64 16.63

e) Income Tax under Dispute 5.37 3.64

f) Customs duty on goods lying 2.24 0.72 at Bonded Warehouse

9 DISCLOSURE ON RELATED PARTY TRANSACTIONS (AS 18)

Description of relationship and Names of related parties:

1. Subsidiaries TVS Srichakra Investments Ltd.,

TVS Europe Distribution Ltd.

2. Associates TV Sundram Iyengar & Sons Private Limited Van Leeuwen Tyres & Wheels B.V., Holland

3. Joint venturer ZF Electronics TVS (India) P Ltd

4. Key Management Personnel Sri R Naresh, Executive Vice Chairman Ms Shobhana Ramachandhran, Managing Directoi

5. Enterprise with Common Key Sundaram Industries Private Management Personnel Limited

10 No amount is due as on 31st March, 2015 for credit to Investor Education and Protection Fund.

11 Terms of repayment of Term Loan

1. Term loan from State Bank of India is repayable in 66 monthly installments commencing from October 2010

2. Term loan from State Bank of India is repayable in 72 monthly installments commencing from April 2014 (with a moratorium of 12 months)

3. Term loan from KarurVysya Bank Limited is repayable in 72 monthly installments commencing from October 2011

4. Hire Purchase Loan from Sundaram Finance Ltd., is repayable in monthly installments commencing from January 2010

5. ECB Loan from DBS Bank Limited is repayable in 20 Quarterly installment commencing from January 2014

12 An amount of Rs. 33.80 per share (338%) has been recommended by the board of directors towards dividend.

13 Figures of the previous year have been regrouped/reclassified wherever necessary to conform to current year''s classification.


Mar 31, 2014

Rs. in lakhs Contingent liabilities : 31.3.2014 31.3.2013

Balance at the beginning of the year 5004.04 12648.47

Additions / (Deletions) during the year 2484.07 (7644.43)

Balance at the end of the year 7488.11 5004.04

Liabilities disputed and not provided for:

- Income tax, Sales Tax & Excise duty:

Balance at the beginning of the year 215.25 204.79

Additions / (Deletions) during the year 2059.18 10.46

Balance at the end of the year 2274.43 215.25

a) The company values Raw materials, Work in progress, Stores & Spares by applying weighted average price method in respect of Raw materials, Cost consists of Material cost, cess, duties & Freight. In respect of Work in progress cost consist of Material cost, Labour and other appropriate overheads.

b) The company manufactures and sells Two wheeler, Three wheeler, Industrial, Agricultural and Farm Tyres as well as Knobs for direct application

The main Raw Materials in the production are as follows:

a) Natural Rubber b) Carbon Black c) Synthetic Rubber d) Butyle Rubber e) Chemical & Oils f) Bead wire g) Valves

m) Contingent Liabilities not provided for: Rs. in .lakhs 31.3.2014 31.32013 a) Estimated amount of contracts remaining to be executed on capital account 1093.10 1057.05

b) On Letters of Credit opened by Company''s Bankers 6322.68 3801.39

c) Excise Duty under Dispute 247.30 202.13

d) Sales Tax under Dispute 1663.18 13.12

e) Customs duty on goods lying at Bonded Warehouse 72.33 145.60

f) Income Tax under Dispute 363.95 -

o) DISCLOSURE ON RELATED PARTY TRANSACTIONS (AS 18)

Description of relationship and Names of related parties:

1. Subsidiaries TVS Srichakra Investments Ltd.,

TVS Europe Distribution Ltd.

2. Associates TVS Sundram Iyengar & Sons Limited

ZF Electronics TVS (India) P Ltd

Van Leeuwen Tyres & Wheels B.V., Holland

3. Key Management Personnel Sri R Naresh, Executive Vice Chairman

Ms Shobhana Ramachandhran, Managing Director

4. Enterprise with Common Key

Management Personnel Sundaram Industries Limited

Figures in brackets are that of previous year.

s) Terms of repayment of Term Loan

1. Term loan from State Bank of India is repayable in 66 monthly installments commencing from October 2010

2. Term loan from State Bank of India is repayable in 72 monthly installments commencing from April 2014

3. Term loan from Karur Vysya Bank Limited is repayable in 72 monthly installments commencing from October 2011

4. Hire Purchase Loan from Sundaram Finance Ltd., is repayable in monthly installments commencing from January 2010

5. ECB Loan from DBS Bank Limited is repayable in 20 Quarterly installments commencing from January 2014

6. Term loan from DBS Bank is repayable in 16 quarterly installments commencing from January 2012 t) An amount of Rs. 16/- per share has been approved by the board of directors towards dividend.


Mar 31, 2013

A) The Company value Raw materials, Work in progress, Stores & Spares by applying weighted average price method. In respect of Raw materials, Cost consists of Material cost, CESS, Duties & Freight. In respect of Work in progress cost consist of Material cost, Labour and other appropriate overheads.

b) The Company manufactures and sells Two wheeler, Three wheeler, Industrial, Agricultural and Farm Tyres as well as Knobs for direct application

The main Raw Material in the production are as follows:

a) Natural Rubber b) Carbon Black c) Synthetic Rubber d) Butyl Rubber e) Chemical & Oils f) Bead wire g) Valves

c) The company has decided that, non core activities will henceforth be carried out by its wholly owned subsidiary company - TVS Srichakra Investments Limited. The following transactions have been entered into during the year.

I) An advance of Rs.20 Cr paid in an earlier year for acquiring a property has been transferred to a wholly owned subsidiary Company during the year.

II) During the year, the Company has transferred 5 lacs shares of Rs.10 each in ZF Electronics TVS (India) Private Limited.,for a consideration of Rs. 12 Crores based upon an independent Valuation report. This has resulted in a Profit on sale of investment of Rs. 11.47 Crores.

III) A sum of Rs 33.53 Crores is outstanding from this wholly owned subsidiary at the end of the accounting year.

c) Profit on sale of Assets included under the head other income includes sale of machineries the book value of which is Rs. 2983 lakhs, sold for a consideration of Rs. 5530 lakhs based on independent valuation obtained.

d) DISCLOSURE ON RELATED PARTY TRANSACTIONS (AS 18) Description of relationship and Names of related parties :

1. Subsidiaries TVS Srichakra Investments Ltd.,

TVS Europe Distribution Ltd.,

2. Associates TVS Sundram Iyengar & Sons Limited

TVS Telecom Components Limited

ZF Electronics TVS (India) P Ltd

Van Leeuwen Tyres & Wheels, B.V. Holland

3. Key Management Personnel Sri R Naresh, Executive Vice Chairman

Ms Shobhana Ramachandhran, Managing Director

e) No amount is due as on 31st March, 2013 for credit to Investor Education and Protection Fund.

f) Terms of repayment of Term Loan

1. Term loan from SBI V is repayable in 66 monthly installments commencing from October 2010 (with a moratorium of 6 months)

2. Term loan from KVB is repayable in 72 monthly installments commencing from October 2011

3. HP Loan from Sundaram Finance Ltd., is repayable in monthly installments commencing from January 2010

4. ECB Loan from DBS Bank is repayable in 20 Quarterly Instalment at the end of 27 months from the 1st drawdown (with a moratorium of 2 years)

5. Term loan from DBS Bank is repayable in 16 quarterly installments at the end of 15 months from the 1st drawdown

g) An amount of Rs.7.50 per share has been approved by the Board of Directors towards dividend.


Mar 31, 2012

Equity shares - The Company has one class of equity share having a par value of Rs. 10/- each. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. Each shareholder also has a residual interest in the assets of the Company in proportion to their shareholding, in the unlikely event of liquidation of the Company.

a. Details of Security for Secured Loans

a) Term Loan availed from State Bank of India is secured by hypothecation of Specified movable Plant & Machinery located at Company's Plant at Vellaripatti Village including 1 No.1250 KW Wind Electric Generator located at Vadavalli Village, Palladum Taluk, Coimbatore District. Further the Term Loan from State Bank of India is secured by equitable mortgage by deposit of title deeds of 1.90 acres of land in Survey No.519/1B2, located at Narasingampatti Village, Madurai and lease hold land located at Pant Nagar, Rudrapur, Uttrakhand.

b) Term Loan from Karur Vyasa Bank Ltd., is secured by hypothecation of Specific Plant and Machinery located at Company's Plant at Vellaripatti Village, Madurai.

c) Term Loan from Sundaram Finance Ltd., is secured by hypothecation of Specific Plant & Machinery located at Pant Nagar, Rudrapur, Uttrakhand as well as Specific Plant and Machinery located at Vellaripatti Village, Madurai.

d) Term Loan from DBS Bank is secured by hypothecation of Specific Plant & Machinery located at Madurai as well as specified immovable properties located at Madurai. The Charge for the same is yet to be created.

a) The company has prepared the financial statement in accordance with the Revised Schedule VI of the Companies Act, 1956. Accordingly the figures of the previous year have been regrouped and reclassified so as to make them comparable with that of the current year.

b) The company had been valuing Raw materials, Work in progress, Stores & Spares by applying first in first out method till 30th September, 2011. The company has adopted the weighted average price method of valuation for the above with effect from 1st October, 2011. In respect of Raw materials, Cost consists of Material cost, Cess, Duties & Freight. In respect of Work in progress cost consists of Material cost, Labour and other appropriate overheads. The effect of the change in method of valuation increases the value of stock by Rs. 77.19 lakhs with a consequential impact on the Profits & Reserves.

c) The company manufactures and sells Two wheeler, Three wheeler, Industrial, Agricultural and Farm Tyres as well as Knobs for direct application

The main Raw Material in the production are as follows:

a) Natural Rubber b) Carbon Black c) Synthetic Rubber d) Butyle Rubber e) Chemical & Oils

f) Bead wire g) Valves

p) Information pursuant to clause 4 (ix) (b) of the Companies (Auditor's Report) Order, 2003 in respect of dues disputed, not deposited, pending with various authorities:

u) Terms of repayment of Term Loan

1. Term loan from SBI III is repayable in 62 monthly installments commencing from April, 2009 (with a moratorium of 8 months).

2. Term loan from SBI IV is repayable in 48 monthly installments commencing from January, 2010 (with a moratorium of 9 months).

3. Term loan from SBI V is repayable in 66 monthly installments commencing from October, 2010 (with a moratorium of 6 months).

4. Term loan from SBI VI is repayable in 62 monthly installments commencing from April, 2011 (with a moratorium of 8 months).

5. Term loan from KVB is repayable in 72 monthly installments commencing from October, 2011.

6. HP Loan from Sundaram Finance Ltd., is repayable in monthly installments commencing from January, 2010.

7. ECB Loan from DBS Bank is repayable in 20 Quarterly Installment at the end of 27 months from the 1st drawdown (with a moratorium of 2 years).

8. Term loan from DBS Bank is repayable in 16 quarterly installments at the end of 15 months from the 1st drawdown.


Mar 31, 2011

(Rs. In Lakhs)

Contingent liabilities: 31.3.2011 31.3.2010

Balance at the beginning of the year 5347.35 1956.50

Additions /( Deletions) during the year (1102.83) 3390.85

Balance at the end of the year 4244.52 5347.35

k) Mr R Naresh, Executive Vice Chairman is holding the position of a Joint Managing Director in Sundaram Industries Limited and hence the remuneration payable is subject to the limits setout under Section III of Part II of Schedule XIII of the Companies Act, 1956. Mr R Naresh is in receipt of salary and perquisites from the other Company and has opted only for commission from this Company.

Rs. in lakhs

31.3.2011 31.3.2010

2. Contingent Liabilities not provided for:

a) Estimated amount of contracts remaining to be executed on capital account 1,470.42 885.53

b) On Letters of Credit opened by Companys Bankers 2,183.14 4,081.95

c) Excise Duty under Dispute 185.85 195.89

d) Sales Tax under Dispute 7.31 6.08

e) Customs duty on goods lying at Bonded Warehouse 590.96 379.87

3. No amount is due as on 31st March, 2011 for credit to Investor Education and Protection Fund.

4. Nature of charge created against secured loans:

a) Working Capital Facilities availed from State Bank of India are secured by a first charge by way of hypothecation of stock of raw materials, stores, work-in-progress, finished goods and book debts;

b) Term Loan availed from State Bank of India is secured by hypothecation of specified movable Plant & Machinery located at Companys Plant at Vellaripatti Village, Madurai including 1 No. 1250 KW Wind Electric Generator located at Vadavalli Village, Palladam Taluk, Coimbatore District. Further, the term loan of State Bank of India is secured by equitable mortgage by deposit of title deeds of 1.90 acres of land in Survey No.519/1B2, located at Narasingampatti Village, Madurai and lease hold land located at Pant Nagar, Rudrapur, Uttarkhand.

c) Term Loan from Sundaram Finance Ltd., is secured by hypothecation of specific plant and machinery located at Pant Nagar, Rudrapur, Uttarkhand as well as specific plant & machinery located at Vellaripatti Village Madurai.

d) Term Loan from Karur Vysya Bank Ltd. is secured by hypothecation of specific plant and machinery located at Companys Plant at Vellaripatti Village, Madurai.

5. The Accounts of the Subsidiary Company is consolidated for the first time with the Accounts of the Holding company and hence previous years figures are not furnished.

6. Disclosure On Related Party Transactions (AS 18)

Description of relationship and Names of related parties:

1 Subsidiary TVS Srichakra Investments Ltd.,

2 Associates T V Sundram Iyengar & Sons Limited

TVS Telecom Components Limited

ZF Electronics TVS (India) P Ltd

Van Leeuwen Tyres & Wheels B.V., Holland

3 Key Management Personnel Sri R Naresh, Executive Vice Chairman

Ms Shobhana Ramachandhran, Managing Director

4 Enterprise with Common Key Management Sundaram Industries Limited Personnel

7. Previous years figures have been reclassified wherever necessary to conform current years classification.


Mar 31, 2010

(Rs. In Lakhs)

Contingent liabilities: 31.3.2010 31.3.2009

Balance at the beginning of the year 1956.50 3666.58

Additions /(Deletions) during the year 3390.85 (1710.08)

Balance at the end of the year 5347.35 1956.50

(Rs. In Lakhs) Liabilities disputed and not provided for: - Sales Tax & Excise: 31.3.2010 31.3.2009

Balance at the beginning of the year 232.52 267.69

Additions /( Deletions) during the year (30.55) (35.17)

Balance at the end of the year 201.97 232.52



Mr R Naresh, Executive Vice Chairman is holding the position of a Joint Managing Director in Sundaram Industries Limited and hence the remuneration payable is subject to the limits setout under Section III of Part II of Schedule XIII of the Companies Act, 1956. Mr R Naresh is in receipt of salary and perquisites from the other Company and has opted only for commission from this Company.

Rs. in lakhs

31.3.2010 31.3.2009 2. Contingent Liabilities not provided for:

a) Estimated amount of contracts remaining

to be executed on capital account 885.53 1112.85

b) On Letters of Credit opened by Companys Bankers 4,081.95 826.83

c) Excise Duty under Dispute 195.89 197.99

d) Sales Tax under Dispute 6.08 34.53

e) Customs duty on goods lying at Bonded Warehouse 379.87 16.82



3. No amount is due as on 31st March, 2010 for credit to Investor Education and Protection Fund.

4. Nature of charge created against secured loans:

a) Working Capital Facilities availed from State Bank of India are secured by a first charge by way of hypothecation of stock of raw materials, stores, work-in-progress, finished goods and book debts;

b) Term Loan availed from State Bank of India is secured by hypothecation of specified movable Plant & Machinery located at Companys Plant at Vellaripatti Village, Madurai including 1 No. 1250 KW Wind Electric Generator located at Vadavalli Village, Palladam Taluk, Coimbatore District. Further, the term loan of State Bank of India is secured by equitable mortgage by deposit of title deeds of 1.90 acres of land in Survey No.519/1B2, located at Narasingampatti Village, Madurai and lease hold land located at Pant Nagar, Rudrapur, Uttarkhand.

c) Term Loan from Sundaram Finance Ltd., secured by hypothecation of specific plant and machinery located at Pant Nagar, Rudrapur, Uttarkhand.

5. M/s. TVS Srichakra Investments Ltd.was incorporated on 5th February, 2010. This is a wholly owned Subsidiary Company. The accounts of the Subsidiary Company will be closed for the first time on 31.3.2011. Hence the accounts for the year has not been consolidated.

6. Disclosure On Related Party Transactions (AS 18)

Description of relationship and Names of related parties:

1 Subsidiary TVS Srichakra Investments Ltd.,

2 Associates T V Sundram Iyengar & Sons Limited

TVS Telecom Components Limited

ZF Electronics TVS (India) P Ltd

Van Leeuwen Tyres & Wheels B.V., Holland

3 Key Management Personnel Sri R Naresh, Executive Vice Chairman

Ms Shobhana Ramachandhran, Managing Director

4 Enterprise with Common Key Management Sundaram Industries Limited Personnel

7. Previous years figures have been reclassified wherever necessary to conform current years classification.



 
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