Mar 31, 2023
The Company has only one class of equity shares having a par value of Rs.10/- per share. Each member is entitled to one vote by e voting (remote e - voting/ e - voting at the meeting), every shareholder is entitled to vote in proportion to their holdings.
Provision for warranty related costs is an estimate made by the management based on possible future outflow on servicing the customer for any corrective action when the product is sold to the customer. Initial Recognition is based on historical experience. The estimate of warranty related costs is reviewed annually.
26 CONTINGENT LIABILITIES AND COMMITMENTS i) Contingent Liabilities |
||
a) Bills discounted with Banks b) Disputed amounts in respect of GST, Income Tax and |
- |
2.21 |
Value Added Tax which are contested in appeal and not provided for ii) Commitments |
5.53 |
5.71 |
Estimated amount of contracts remaining to be executed on capital account and not provided for |
24.67 |
39.64 |
The term loans and other loans are repayable over a period of 1 to 5 years as per the terms of agreement entered into with the Banks / others.
The Company''s sale of services include certain composite services, wherein the purchase and its corresponding sale of materials/components amounting to Rs. 269.01 crores are netted off and reflected in the Statement of Profit and Loss. (previous year ''Nil'').
a) Provident Fund
In respect of the Employees Provident Fund Scheme, the Company has contributed Rs. 6.97 crores for the year ended 31st March 2023 (previous year Rs. 6.55 crores) to Provident fund Authorities.
b) Superannuation :
The Company has contributed Rs. 0.71 crores for the period 2022-23 (previous year Rs. 0.66 Crores) to the Superannuation trust and the same is recognised in Statement of Profit and Loss under the head employee benefit expenses.
Defined Benefit Plan
c) In respect of employees Provident Fund managed through Trust, the Company has contributed Rs. 4.25 crores for the year ended 31st March,2023 (previous year Rs. 3.73 crores) to the Provident Fund Trust. The interest payable by trust to the beneficiaries of trust as per the rate notified by the Government is met by the trust with contribution from company for the previous year ended 31st March 2023 of Rs. 2.52 crores. (previous year - Rs. 2.19 Crores).
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:
Level 1 hierarchy - Includes Financial Instruments measured using quoted prices in the active market.
Level 2 hierarchy - 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.
i) The Fair value of an Equity Instruments classified as at Fair value through profit or loss included under Level 3 Investments is determined using Cost approach.
ii) The Fair value of an equity Instrument classified as at Fair value through Other Comprehensive Income included under Level 3 Investments was valued by Registered valuer taking a combination of comparable companies multiple method and Discounted cash flow method in the previous year.
iii) There are no transfers between Level 2 and Level 3 during the year.
iv) Trade Receivables, Trade Payables, Cash and Cash equivalents and Other Financial Assets and Liabilities are stated at amortized cost which approximates their fair value.
The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Risk management policies have been established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review and reflect the changes in the policy accordingly.
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities . In doing this, management considers both normal and stressed conditions.
The Company regularly monitors the rolling forecasts and the actual cash flows to service the financial liabilities on a day-to-day basis through cash generation from business and by having adequate banking facilities.
The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.
The Company is exposed to the following market risks which affects the value of the Financial instruments:
1. Currency risk;
2. Interest rate risk
i) Foreign currency risk
Foreign currency risk is the risk that the fair value of or future cash flows of an exposure will fluctuate because of the changes in foreign exchange rates. As at 31st March, 2023, the net un-hedged exposure to the Company on holding such financial assets and liabilities amounts to Rs. 180.76 Crores.
The Company manages currency exposures by continuously monitoring the Foreign currency rates with the transaction rate and takes steps to mitigate the risk using Forward/ Derivative contracts.
A 5% strengthening of the INR against foreign currencies to which the Company is exposed (net of hedge) would have led to approximately an additional Gain of Rs. 9.04 Crores in the Statement of Profit and Loss. A 5% weakening of the INR against these currencies would have led to an equal impact but with opposite effect.
Interest rate is the risk that the Fair value of future cash flows of a financial instruments will fluctuate because of changes in market interest rates. The Company has Rs. 100.88 Crores Borrowings at Floating rate of Interest as at 31st March, 2023 (previous year Rs. 181.40 Crores).
An increase in interest rate of 1% will likely to affect the profit negatively by Rs. 1.01 crores and a decrease of 1% would have led to an equal impact but with opposite effect.
Credit risk is the risk of financial loss to the Company if the other party to the financial assets fails to meet its contractual obligations.
Concentration of credit risk with respect to trade receivables are limited as the customers are predominantly original equipment manufacturers (OEs). All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Refer Note (f) for accounting policy on Financial Instruments.
The Company has exposure in Cash and cash equivalents and term deposits with banks. The Company''s maximum exposure to credit risk as at 31st March, 2023 is the carrying value of each class of financial assets as on that date.
Return on Equity and Net profit ratio : The net profit for the year has declined due to additional inspection and rectification work at an overseas customer location and higher interest cost. Decline in the net profit compared to the earlier year is the reason for decline in this ratio.
Debt service coverage ratio : It is adversely impacted by increase in Interest cost in furtherance of increase in repo rate.
Return on Investments : As a result of Dividend receipt from it''s investments (previous year Nil).
a) The Company does not have any Benami property held in its name. No proceeding has been initiated or pending against the company for holding any benami property under the benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
b) During the year, the Company has borrowings from banks on the basis of security of current assets. Returns/Statements filed with the banks on a periodical basis are in agreement with the books of accounts.
c) As per the information available with the company, the company has not transacted with any companies struck off under section 248 of the Companies Act, 2013 or under Section 560 of the Companies Act, 1956
d) There has been no charges or satisfaction yet to be registered with the Registrar of Companies (ROC) beyond the statutory period
e) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
f) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity (ies), including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall
(i) 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
(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
g) 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
(i) 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
(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
h) Company has not traded or invested in Crypto currency or virtual currency during the financial year ended March 31, 2023.
i) The Company has not given any loans or advances in the nature of loans to Promoters, Directors, Key Managerial Personnel and related parties, that are repayable on demand or without specifying any terms or period of repayment.
a) The Board of Directors of the Company at their meeting held on December 07, 2021, approved the scheme of amalgamation of Sundaram Hydraulics Limited with the Company and their respective shareholders, effective 1st Oct 2021. The Company is awaiting the final hearing and necessary directions in this regard from National Company Law Tribunal ( NCLT).
b) Product inspection and rectification expenses include Rs 27.23 crores, net of insurance claim received, towards cost of certain pre-delivery / increased inspection and rectification work at an overseas customer location.
c) Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.
Mar 31, 2022
27 CONTINGENT LIABILITIES AND COMMITMENTS i) Contingent Liabilities |
||
a) Bills discounted with Banks b) Disputed amounts in respect of GST and Value Added Tax which are contested in appeal and not |
2.21 |
38.08 |
provided for (of which a sum of Rs. NIL (previous year Rs. 0.34 crores) paid under protest appears under other current assets in the Balance Sheet) ii) Commitments |
5.71 |
6.75 |
Estimated amount of contracts remaining to be executed on capital account and not provided for |
39.64 |
22.50 |
28 TERMS OF REpAYMENT OF TERM LOANS AND OTHER LOANS |
||
The term loans and other loans are repayable over a period of 1 to 5 years as per the terms of agreement entered into with the banks / others. |
||
29 OTHER INCOME |
2021-22 |
2020-21 |
a) Interest on deposits and advances |
0.93 |
1.76 |
b) Dividend Received |
- |
0.36 |
c) Other non-operating income |
2.97 |
2.07 |
d) Net Gain on foreign currency transactions and translation |
10.48 |
- |
30 COST OF MATERIAL CONSUMED |
14.38 |
4.19 |
Raw Material |
2,364.73 |
1,222.96 |
Components |
460.54 |
324.19 |
2,825.27 |
1,547.15 |
40 EMPLOYEE BENEFITS Defined Contribution Plan
a) Provident Fund
In respect of the Employees Provident Fund Scheme, the Company has contributed Rs. 6.55 crores for the year ended 31st March 2022 (previous year Rs. 5.63 crores) to Provident fund Authorities.
b) Superannuation :
The Company has contributed Rs. 0.66 crores for the period 2021-22 (previous year Rs. 0.54 Crores) to the Superannuation trust and the same is recognised in Statement of Profit and Loss under the head employee benefit expenses Defined Benefit Plan
c) In respect of employees Provident fund managed through Trust, the Company has contributed Rs. 3.73 crores for the year ended 31st March, 2022 (previous year Rs. 2.75 crores) to the Provident fund Trust. The interest payable by trust to the beneficiaries of trust as per the rate notified by the Government is met by the trust with contribution from company for the previous year ended 31st March, 2022 of Rs. 2.19 crores. (previous year - Rs. 1.87 Crores).
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that
are either observable or unobservable and consists of the following three levels:
Level 1 hierarchy - Includes Financial Instruments measured using quoted prices in the active market.
Level 2 hierarchy - 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.
Level 3 hierarchy - Includes financial Instruments for which one or more of the significant inputs are not based on observable market data. This is applicable for unlisted securities.
i) The Fair value of an Equity Instruments classified as at Fair value through profit or loss included under Level 3 Investments is determined using Cost approach.
ii) The fair value of an equity Instrument classified as at fair value through Other Comprehensive Income included under Level 3 Investments is determined using Discounted Cash flow technique in the previous year and the same has been valued by Registered valuer taking a combination of comparable companies multiple method and Discounted cash flow method during the year.
* Valuation as per the registered valuer, for the purpose of Scheme of Amalgamation of Sundaram Hydraulics Ltd. and Wheels India Ltd. has been taken as fair value of equity shares held by the company.
iv) There are no transfers between Level 2 and Level 3 during the year.
v) Trade Receivables, Trade Payables, Cash and Cash equivalents and Other financial Assets and Liabilities are stated at amortized cost which approximates their fair value.
The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Risk management policies have been established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review and reflect the changes in the policy accordingly.
a) Management of liquidity risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities . In doing this, management considers both normal and stressed conditions.
The Company regularly monitors the rolling forecasts and the actual cash flows to service the financial liabilities on a day-to-day basis through cash generation from business and by having adequate banking facilities.
The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.
The Company is exposed to the following market risks which affects the value of the Financial instruments:
1. Currency risk
2. Interest rate risk
i) foreign currency risk
foreign currency risk is the risk that the fair value of or future cash flows of an exposure will fluctuate because of the changes in foreign exchange rates. As at 31st March, 2022, the net un-hedged exposure to the Company on holding such financial assets and liabilities amounts to Rs. 241.88 Crores.
The Company manages currency exposures by continuously monitoring the foreign currency rates with the transaction rate and takes steps to mitigate the risk using forward/ Derivative contracts.
Sensitivity to risk
A 5% strengthening of the INR against foreign currencies to which the Company is exposed (net of hedge) would have led to approximately an additional Gain of Rs. 12.10 Crores in the Statement of Profit and Loss. A 5% weakening of the INR against these currencies would have led to an equal impact but with opposite effect.
The foreign exchange forward contracts as at 31st March, 2022 is âNilâ (31st March,2021 - no contracts) ii Interest rate Risk
Interest rate is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market interest rates. The Company has Rs. 181.40 Crores Borrowings at floating rate of Interest as at 31st March, 2022 (previous year Rs. 200.84 Crores).
Sensitivity to risk
An increase in interest rate of 1% will likely to affect the profit negatively by Rs. 1.81 crores and a decrease of 1% would have led to an equal impact but with opposite effect.
c) Management of credit risk
Credit risk is the risk of financial loss to the Company if the other party to the financial assets fails to meet its contractual obligations.
i) Trade Receivables:
Concentration of credit risk with respect to trade receivables are limited as the customers are predominantly original equipment manufacturers (OEs). All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Hence, provision for credit loss is not required to be created as per expected credit loss (ECL) method. Refer Note (f) for accounting policy on financial Instruments.
ii) Other financial Assets:
The Company has exposure in Cash and cash equivalents and term deposits with banks. The Company''s maximum exposure to credit risk as at 31st March, 2022 is the carrying value of each class of financial assets as on that date.
The major reason for variance is due to increase in sales and net profit during the year. The Company has
recovered from Covid 19 pandemic as compared to previous year.
a) The Board of Directors of the Company, at their meeting held on December 07, 2021, approved the scheme of amalgamation of Sundaram Hydraulics Limited with the Company and their respective shareholders. based on receipt of ''No Objection Letter'' dated February 10, 2022 from NSE / SEBI, the Company has filed an application with the Hon''ble NCLT, Chennai on March 16, 2022 and is awaiting necessary directions in this regard.
b) Consequent to the approval of the composite scheme of amalgamation / arrangement, the holding of 71,43,656 equity shares have been transferred to / vested in M/s. Trichur Sundaram Santhanam & Family Private Limited (TSSFPL), effective February 04, 2022.
c) During the year, the Company has borrowings from banks on the basis of security of current assets. Returns/ Statements filed with the banks on a periodical basis are in agreement with the books of accounts.
51 Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.
Mar 31, 2018
1. Related Party disclosures in accordance with Ind AS 24
i) Subsidiary :
WIL Car Wheels Limited
ii) a) Associates:
Axles India Ltd.
b) Associates by virtue of their shareholding in Wheels India Limited
T.V. Sundram Iyengar & Sons Private Ltd.
Titan Europe Limited., UK
iii) Other Related parties and the relationship where transaction exists
a) Associate''s Subsidiary
Sundaram Industries Private Limited
Sundaram Fastners Ltd
The Associated Auto Parts Private Limited
TVS Automobile Solutions Private Limited
Sundram Fasteners Limited
SI Air Springs Private Limited
(formerly Firestone TVS Private Limited)
TVS Motors Limited
TVS Electronics Ltd
TVS Training & Services Ltd
Titan Steel Wheels Ltd
Titan Wheels Corporation of Illinois
Titan Australia PTY Ltd
PT Titan Wheels Indonesia
b) Subsidiary''s Associate
Topy Industries Limited,Japan
iv) Key Managerial Personnel Mr S Ram
Mr Srivats Ram
v) Post Employment Benefit plan entity Wheels India Employees Gratuity Trust Wheels India Limited Staff Provident Fund Wheels India Senior Officers Superannuation Trust
Mar 31, 2017
1. The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 and Notification dated 29th December 2011 issued by the Ministry of Corporate Affairs.
Consequently, Exchange differences relating to Long Term Foreign Currency Monetary Items (other than Fixed assets) amounting to Rs.0.26 Crores gain {net of amortization Rs. 0.72 Crores} [Previous year Rs. 0.14 Crores gain {net of amortization Rs. 0.25 Crores}] are adjusted to Foreign currency Monetary Item Translation Difference Account.
2. In the opinion of the management the Long term Investment in Equity shares of Sundaram Hydraulics Limited is considered as strategic in nature and the diminution in the value of the said investment is considered as temporary in nature in view of the long term business outlook and future growth plans. Hence no provision is considered necessary. However the provision made in the earlier year amounting to Rs. 1.00 crore is retained.
3. Final dividend of Rs. 8.00 Per equity share amounting to Rs.9.63 Crores for the Financial year 2016-17 recommended by Board of Directors which is subject to the approval of shareholders at the ensuing Annual General meeting is not recognized as liability as at the date of Balance sheet.
4. The Details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016.
This information has been given in respect of such vendors to the extent they could be identified as ''Micro, Small and Medium Enterprises'' on the basis of information available with the Company on which the Auditors have relied upon.
5. Employee Benefits
The Company has followed the Accounting Standard 15 (AS-15 revised) âEmployee Benefitsâ.
Brief Description of the plans:
The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Company''s defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employee''s Provident Funds and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.
In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the government is met by the trust with Contribution from the Company and hence the company has no obligations towards this interest contribution. The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.
6. Derivative instruments
Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs.29.05 crores (Previous year - Rs.101.45 crores)
7. Previous year''s figures have been regrouped wherever necessary to conform to
Mar 31, 2016
1. The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 and Notification dated 29th December 2011 issued by the Ministry of Corporate Affairs.
Consequently, Exchange differences relating to Long Term Foreign Currency Monetary Items (other than Fixed assets) amounting to Rs.0.14 Crores gain {net of amortization Rs. 0.25 Crores} [Previous year Rs. 0.01 Crores loss {net of amortization Rs.0.16 Crores}] are adjusted to Foreign currency Monetary Item translation Difference Account.
2. In the opinion of the management the Long term Investment in Equity shares of Sandarac Hydraulics Limited is considered as strategic in nature and the diminution in the value of the said investment is considered as temporary in nature in view of the long term business outlook and future growth plans. Hence no provision is considered necessary. However the provision made in the previous year amounting to Rs. 1.00 crore is retained.
3. Employee Benefits
The Company has followed the Accounting Standard 15 (AS-15 revised) âEmployee Benefitsâ.
Brief Description of the plans:
The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Company''s defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employee''s Provident Funds and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.
In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the government is met by the trust with contribution from the Company and hence the Company has no obligations towards this interest contribution. The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.
Disclosures for the Defined Benefit Plans based on Actuarial Reports as on 31/03/2016 are as under:
4. Related party disclosures in accordance with AS18 issued by ICAI Associates:
T.V.Sundram Iyengar & Sons Private Ltd.
Axles India Ltd.
Titan Europe Limited, UK Sundaram Hydraulics Ltd.*
* Ceased to be an associate effective from 25.03.2016
Key Managerial personnel:
Mr S Ram Mr Srivats Ram
5. Derivative instruments
Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs.101.45 crores (Previous year - Rs.8.43 crores)
6. Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification. Signatories to Notes to Financial Statements
Only Audit Committee and Stakeholders Relationship Committee considered.
Non Executive Chairman with effect from 1.9.2015
Mr S Ram is father of Mr Srivats Ram, Managing Director and brother of Mr S Viji.
None of the Directors is a member of more than ten Board-level Committees or Chairman of more than five such Committees, as required under the SEBI (Listing Obligations and Disclosure Requirements ) Regulations 2015 (âSEBI LODRâ), across all public limited companies in which they are directors. All the Independent Directors have Complied with the maximum number of Directorships permitted under the Companies Act, 2013 (âActâ).
Attendance at Board Meetings and last Annual General Meeting
During the Financial Year 2015-16 under review, 5 Board Meetings of the Company were held on 23.4.2015, 18.5.2015, 12.8.2015, 5.11.2015 and 11.2.2016 and the last Annual General Meeting was held on 13.8.2015.
Mar 31, 2014
Rs. in Lakhs
As at As at
31.03.2014 31.03.2013
1 CONTINGENT LIABILITIES AND COMMITMENTS
i) Contingent Liabilities
a) bills discounted with banks 10,766.53 9,400.81
b) Disputed amounts in respect of sales tax,
service tax, customs duty and Value Added tax
which are contested in appeal and not provided
for (of which a sum of Rs.4.63 lakhs
(previous year Rs.11.96 lakhs) paid under protest
appears under Long term Loans and Advances
in the balance Sheet) 122.28 115.31
c) Contingent Liability towards demand for enhanced
compensation for Land at bawal, Haryana
not provided for 83.73 172.10
ii) Commitments
Estimated contracts remaining to be
executed on capital account and not provided for 687.88 1,931.06
2 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS
The term loans and other loans are repayable over a period of 1 to 5
years as per the terms of agreement entered into with the banks /
others.
3 The Company opted for accounting the exchange differences arising on
reporting Foreign Currency monetary Items in line with the Companies
(Accounting Standards) Amendment Rules, 2009 on AS11 notifcation dated
31st march, 2009 read with notifcation dated 11th may, 2011 and
notifcation dated 29th december 2011 issued by the ministry of
Corporate Affairs.
Consequently, exchange differences relating to Long term Foreign
Currency monetary Items (other than Fixed assets) amounting to Rs
153.39 Lakhs loss {net of amortization Rs 1,107.48 Lakhs} [Previous
year Rs 409.72 Lakhs loss {net of amortization Rs 202.15 lakhs}] are
adjusted to Foreign currency monetary translation difference Account.
4 Employee benefits
The Company has followed the Accounting Standard 15 (AS-15 revised)
"employee benefits".
Brief Description of the plans:
The Company has various schemes for long term benefits such as Provident
Fund, Superannuation, Gratuity and earned Leave encashment. In case of
funded schemes, the funds are recognized by the Income tax Authorities
and administered through trustees / Life Insurance Corporation of
India. the Company''s Defined contribution plans are Provident Fund and
employees Pension Scheme (under the provisions of the employee''s
Provident Funds and miscellaneous Provisions Act, 1952) and
Superannuation Fund. the Company has no further obligation beyond
making the contributions.
In respect of the employees Provident Fund Scheme, the interest payable
by the trust to the benefciaries as per the rate notifed by the
government is met by the trust with Contribution from the Company and
hence the company has no obligations towards this interest
contribution. the liability in respect of leave encashment benefit to
staff is determined on the basis of actuarial valuation and provided
for accordingly.
5 Segment information for the year ended 31st March, 2014 in
accordance with AS 17 issued by ICAI
(i) Primary segments:
Automotive components is the only reportable segment of the company
(ii) Revenue by Geographical Segment:
6 Derivative instruments
Foreign Currency exposures that are not hedged by a derivative
instrument or otherwise Rs.5,994.11 lakhs (Previous year - Rs.136.14
lakhs).
7 Previous year''s figures have been regrouped wherever necessary to
conform to this year''s classification.
Mar 31, 2013
1 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS
The term loans and other loans are repayable over a period of 1 to 4
years as per the terms of agreement entered into with the Banks /
others and over a period of 5 years in respect of Deferred Payable
Liabilities
2 The Company opted for accounting the exchange differences arising on
reporting Foreign Currency Monetary Items in line with the Companies
(Accounting Standards) Amendment Rules, 2009 on AS11 notification dated
31st March, 2009 read with Notification dated 11th May, 2011 and
Notification dated 29th December 2011 issued by the Ministry of
Corporate Affairs.
Consequently,
i. Exchange differences relating to Long Term Foreign Currency
Monetary Items, in so far related to acquisition of depreciable capital
assets arising during the year amounting to Rs.Nil [Previous year Rs.
87.53 lakhs (loss) {net of depreciation Rs. 9.54 lakhs}] are (deducted)
/ added respectively to the cost of assets and depreciated over the
balance life of the assets.
ii. Exchange differences relating to Other Long Term Foreign Currency
Monetary Items amounting to Rs.409.72 lakhs loss {net of amortization
Rs.202.15 lakhs} [Previous year Rs. 133.30 lakhs loss {net of
amortization Rs. 537.30 lakhs}] are adjusted to Foreign Currency
Monetary Item Translation Difference Account.
3 Employee Benefits
The Company has followed the Accounting Standard 15 (AS-15 revised)
"Employee Benefits".
Brief Description of the plans:
The Company has various schemes for long term benefits such as
Provident Fund, Superannuation, Gratuity and Earned Leave Encashment.
In case of funded schemes, the funds are recognized by the Income Tax
Authorities and administered through trustees / Life Insurance
Corporation of India. The Company''s defined contribution plans are
Provident Fund and Employees Pension Scheme (under the provisions of
the Employee''s Provident Funds and Miscellaneous Provisions Act, 1952)
and Superannuation Fund. The Company has no further obligation beyond
making the contributions.
In respect of the Employees Provident Fund Scheme, the interest payable
by the trust to the beneficiaries as per the rate notified by the
government is met by the trust with Contribution from the Company and
hence the company has no obligations towards this interest
contribution. The liability in respect of leave encashment benefit to
staff is determined on the basis of actuarial valuation and provided
for accordingly.
4 Segment information for the year ended 31st March, 2013 in
accordance with AS 17 issued by ICAI
(i) Primary segments:
Automotive components is the only reportable segment of the company
(ii) Revenue by Geographical Segment:
5 Previous year''s figures have been regrouped wherever necessary to
conform to this year''s classification.
Mar 31, 2012
A) Reconciliation of the shares outstanding at the beginning and at the
end of the reporting period
There is no change in the holding pattern of the Share Capital during
the year 2011-12.
b) Rights, Preferences and restrictions
The Company has only one class of equity shares having a par value of
Rs.10/- per share. Each member is entitled to one vote by show of hands
and while on poll, every shareholder is entitled to vote in proportion
to their holdings.
1 CONTINGENT LIABILITIES AND COMMITMENTS
i) Contingent Liabilities
a) Bills discounted with Banks 10,213.14 13,014.98
b) Disputed amounts in respect of sales
tax, service tax, customs duty and
Property tax which are contested in
appeal and not provided for (of which a
sum of Rs. 9.57 lakhs - previous year
Rs. 7.17 lakhs paid under protest appears
under Long term Loans and Advances in the
Balance Sheet) 112.58 114.17
c) Contingent Liability towards demand
for enhanced compensation for Land at
Bawal, Haryana along with interest is not
provided for, since the quantum has not
yet been determined. Further, the eligible
rebate on land cost as per conditions of
allotment amounting to Rs.32.40 lakhs from
the HSIDC has not been taken into
consideration and the same will be
accounted on cash basis.
ii) Commitments
Estimated amount of contracts remaining
to be executed on capital account and
not provided for 5,134.27 720.06
2 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS
The term loans and other loans are repayable over a period of 1 to 4
years as per the terms of agreement entered into with the Banks /
others and over a period of 5 years in respect of Deferred Payable
Liabilities.
3 During the year the Company has changed its accounting policy to
provide excise duty on closing stock of finished goods at the factory
amounting to Rs. 83.41 lakhs (previous year Rs. 55.25 lakhs) as against
not providing for the same in the previous year. The change has no
impact on Profit/Loss for the current year, however inventory and
current liabilities are higher by that amount.
4 The Company opted for accounting the exchange differences arising on
reporting Foreign Currency Monetary Items in line with the Companies
(Accounting Standards) Amendment Rules, 2009 on AS11 notification dated
31st March, 2009 read with Notification dated 11th May, 2011 issued by
the Ministry of Corporate Affairs.
Consequently,
i. Exchange differences relating to Long Term Foreign Currency
Monetary Items, in so far related to acquisition of depreciable capital
assets arising during the year amounting to Rs. 87.53 lakhs (loss) {net
of depreciation Rs. 9.54 lakhs} (Previous year Rs. 15.41 lakhs (loss)
{net of depreciation Rs. 3.15 lakhs} are (deducted) / added
respectively to the cost of assets and depreciated over the balance
life of the assets.
ii. Exchange differences relating to Other Long Term Foreign Currency
Monetary Items amounting to Rs.133.30 lakhs loss {net of amortization
Rs. 537.30 lakhs} (Previous year Rs. 78.54 lakhs (gain) [net of
amortization Rs. (113.86 lakhs)]) are adjusted to Foreign Currency
Monetary Item Translation Difference Account.
5 Employee Benefits
The Company has followed the Accounting Standard 15 (AS-15 revised)
"Employee Benefits".
Brief Description of the plans:
The Company has various schemes for long term benefits such as
Provident Fund, Superannuation, Gratuity and Earned Leave Encashment.
In case of funded schemes, the funds are recognized by the Income Tax
Authorities and administered through trustees / Life Insurance
Corporation of India. The Company's defined contribution plans are
Provident Fund and Employees Pension Scheme (under the provisions of
the Employees' Provident Funds and Miscellaneous Provisions Act, 1952)
and Superannuation Fund. The Company has no further obligation beyond
making the contributions.
In respect of the Employees Provident Fund Scheme, the interest payable
by the trust to the beneficiaries as per the rate notified by the
government is met by the trust with Contribution from the Company
towards shortfall in interest Nil (previous year - Rs.12.83 lakhs). The
liability in respect of leave encashment benefit to staff is determined
on the basis of actuarial valuation and provided for accordingly.
6 Segment information for the year ended 31st March, 2012 in
accordance with AS 17 issued by ICAI
(i) Primary segments:
Automotive components is the only reportable segment of the company.
The geographical segments considered for disclosure are as follows:
Sales within India include Sales to customers located within India.
Sales outside India include Sales to customers located outside India.
a. Foreign Currency exposures that are not hedged by a derivative
instrument or otherwise Rs.560.01 lakhs (Previous year - Rs.7,869.18
lakhs)
Mar 31, 2011
As at As at
31.03.2011 31.03.2010
1 Contingent Liability towards bills
discounted with banks 13,014.98 14,330.33
2 ii) Contingent Liability towards demand for enhanced compensation
for Land along with interest is not provided for since the quantum has
not yet been determined. Further the eligible rebate on land cost as
per conditions of allotment amounting to Rs.32.40 lakhs from the HSIDC
has not been taken into consideration and the same will be accounted on
cash basis.
3 The Company has not provided for excise duty on closing stock of
finished goods at the factory and customs duty on raw materials in
bonded warehouse amounting to Rs.55.25 lakhs (previous year Rs.55.31
lakhs) and accordingly not included the same in the value of said
inventories. However, this has no impact on the net profit for the
year.
4 The Company opted for accounting the exchange differences arising on
reporting Foreign Currency Monetary Items in line with the Companies
(Accounting Standards) Amendment Rules, 2009 on AS11 notification dated
31st March, 2009 read with Notification dated 11th May, 2011 issued by
the Ministry of Corporate Affairs. Consequently,
i. Exchange differences relating to Long Term Foreign Currency Monetary
Items, in so far related to acquisition of depreciable capital assets
arising during the year amounting to Rs.15.41 lakhs (loss) {net of
depreciation Rs. 3.15 lakhs} (Previous year Rs. 441.43 lakhs (gain)
{net of depreciation Rs.17.88 lakhs}) are (deducted) / added
respectively to the cost of assets and depreciated over the balance
life of the assets.
ii. Exchange differences relating to Other Long Term Foreign Currency
Monetary Items amounting to Rs. 78.54 lakhs (gain) {net of amortization
Rs (113.86 lakhs)} (Previous year Rs. 36.19 lakhs (gain) {net of
amortization Rs. (225.75 lakhs)}) are adjusted to Foreign Currency
Monetary Item Translation Difference Account.
5 Employee Benefits:
The Company has followed the Accounting Standard 15 (AS-15 revised)
"Employee Benefits".
Brief Description of the plans:
The Company has various schemes for long term benefits such as
Provident Fund, Superannuation, Gratuity and Earned Leave Encashment.
In case of funded schemes, the funds are recognized by the Income Tax
Authorities and administered through trustees / Life Insurance
Corporation of India. The Companys defned contribution plans are
Provident Fund and Employees Pension Scheme (under the provisions of
the Employees Provident Fund and Miscellaneous Provisions Act, 1952)
and Superannuation Fund. The Company has no further obligation beyond
making the contributions.
In respect of the Employees Provident Fund Scheme, the interest payable
by the trust to the beneficiaries as per the rate notified by the
Government is met by the trust with contribution from the Company
towards short fall in interest Rs. 12.83 lakhs (last year - Nil). The
liability in respect of leave encashment benefit to staff is determined
on the basis of actuarial valuation and provided for accordingly.
6 Segment information for the year ended 31st March, 2011 in
accordance with AS 17 issued by ICAI:
i) Primary segments:
Automotive components is the only reportable segment of the Company.
ii) Revenue by Geographical Segment:
The geographical segments considered for disclosure are as follows:
Sales within India include Sales to customers located within India.
Sales outside India include Sales to customers located outside India.
7 Related Party disclosures in accordance with AS18 issued by ICAI
Associates:-
T.V.Sundram Iyengar & Sons Ltd.
Axles India Ltd.
Titan Europe Plc.
Sundaram Hydraulics Ltd.
Key Managerial Personnel:
Mr S Ram
Mr Srivats Ram
8 Derivative instruments:
a. Category-wise quantitative data about derivative instruments that
are outstanding at the Balance Sheet date
The purpose for which such derivative instruments were acquired, was to
hedge export receivables and interest cash flows.
b. Foreign Currency exposures that are not hedged by a derivative
instrument or otherwise Rs. 7,869.18 lakhs (Previous year - Rs.
5,256.15 lakhs)
9 Previous Years figures have been regrouped wherever necessary to
conform to this years classification.
Mar 31, 2010
Rs. in Lakhs
2009-10 2008-09
ii) Contingent Liability towards
demand for enhanced compensation
for Land along with interest is not
provided for since the quantum has
not yet been determined.
Further the eligible rebate on land cost
as per conditions of allotment amount
ing to Rs.32.40 lacs from the HSIDC has
not been taken into consideration and the
same will be accounted on cash basis.
1 The Company has not provided for excise duty on closing stock of
finished goods at the factory and customs duty on raw materials in
bonded warehouse amounting to Rs.55.31 Lakhs (previous year Rs.44.52
lakhs) and accordingly not included the same in the value of said
inventories. However, this has no impact on the net profit for the
year.
2 The Company opted for accounting the exchange differences arising on
reporting Foreign Currency Monetary Items in line with the Companies
(Accounting Standards) Amendment Rules, 2009 on AS11 notification dated
31st March 2009 issued by the Ministry of Corporate Affairs.
Consequently,
i. Exchange differences relating to Long Term Foreign Currency Monetary
Items, in so far related to acquisition of depreciable capital assets
arising during the year amounting to Rs.441.43 lakhs (gain) {net of
depreciation Rs. 17.88 lakhs} (Previous year Rs. 971.44 lakhs (loss)
{net of depreciation Rs. 40.33 lakhs} are (deducted) / added
respectively to the cost of assets and depreciated over the balance
life of the assets.
ii. Exchange differences relating to Other Long Term Foreign Currency
Monetary Items amounting to Rs.36.19 lakhs (gain) {net of amortization
Rs. 225.75 lakhs} (Previous year Rs. 461.22 lakhs (loss) {net of
amortization Rs. 625.35 lakhs} are adjusted to Foreign Currency
Monetary Item Translation Difference Account.
3 Employee Benefits:
The Company has followed the Accounting Standard 15 (AS-15 revised)
"Employee Benefits".
Brief Description of the plans:
The Company has various schemes for long term benefits such as
Provident Fund, Superan- nuation, Gratuity and Earned Leave Encashment.
In case of funded schemes, the funds are recognized by the Income Tax
Authorities and administered through trustees / Life Insurance
Corporation of India. The Companys defined contribution plans are
Provident Fund and Employees Pension Scheme (under the provisions of
the Employees Provident Fund and Miscellaneous Provisions Act, 1952)
and Superannuation Fund. The Company has no further obligation beyond
making the contributions.
In respect of the Employees Provident Fund Scheme, the interest rate
payable by the trust to the beneficiaries as notified by the government
is met by the trust and hence the Company has no obligations towards
this interest contribution. The liability in respect of leave
encashment benefit to staff is determined on the basis of actuarial
valuation and provided for accordingly.
4 Segment information for the year ended 31st March, 2010 in
accordance with AS 17 issued by ICAI:
(i) Primary segments:
The Company operates in only one segment viz., automotive components.
5 Previous Years figures have been regrouped wherever necessary to
conform to this years classification.