CHAPTER-1

COMPANY PROFILE

Founded in 1979, TVS Motor Company, the USD 1.5 billion, flagship company of the 100 year old,
USD 7 billion, TVS Group, is one of India’s leading two-wheeler manufacturers and among the top
seven in the world. The company has the widest range of products in the Indian two and three
wheeler industry with exports to more than 60 countries worldwide. Driven by technology and
innovation at the helm, TVS Motor Company boasts of a rich talent pool of more than 7000 personne
l who constantly emphasize the company’s commitment to ensure best practices in state-of-the-art
manufacturing facilities at Hosur in Tamilnadu, Mysore in Karnataka, Nalagarh in Himachal Pradesh
and Karawang in Indonesia. Mr.Venu Srinivasan, the Chairman of TVS Motor Company has led by
example, winning many laurels including the prestigious “Padma Shri”award. “Order of Diplomatic
Service Merit" medal from Korean President, The JRD Tata Corporate, The Star of Asia award
by Business Week, The Jamsheji TATA Lifetime Quality Achievement Award and Emerging
Corporate Giant - Times & Harvard Business School Association are other high-profile awards
bestowed on him, on behalf of the company. He was also awarded the coveted Ishikawa-Kano
Award presented by Asian Network for Quality. Among the latest honours conferred on him was an
honorary doctor of science degree by Purdue University, USA. The company’s penchant for quality
resulted in it becoming the first two-wheeler manufacturer to win the coveted Deming Award in
2002. It was the first Indian company to deploy a catalytic converter in a 100 cc motorcycle and the
first to indigenously produce a four stroke 150cc motorcycle. In 2006, the company’s TVS Apache
became the first Indian motorcycle to consecutively win six prestigious awards in a row. In 2007,
TVS became the first Indian automobile manufacturer to roll out as many as seven new products on a
single day, a testimony to its manufacturing prowess. In 2012, TVS Motor Company was declared
as ‘India’s most trusted Two Wheeler Brand’ by the Brand Equity Most Trusted Brand Survey and in
2014 TVS Jupiter became the most awarded scooter in India, winning six ‘Scooter of the Year’
awards from leading publication houses in the country. In 2015, TVS Motor Company emerged as
the most awarded two wheeler manufacturer of the year having received ‘Two wheeler manufacturer
of the Year’, ‘Motorcycle of the Year upto 110 cc’ : TVS StaR City+ and ‘Two Wheeler Commercial
of the Year’: TVS Sport at the NDTV Car and Bike awards 2015, ‘Motorcycle of the Year Upto
110cc’ : TVS StaR City+ at the Car India Bike India Awards 2015 and ‘Scooter of the Year’ :
TVS Scooty Zest at the Bloomberg Autocar India Awards 2015, ET Zigwheels Awards 2014 and
CNBC Overdrive Awards 2015. In the inaugural edition of JD Power India Two-wheeler IQS 2015,
TVS brands featured in the top three, across segments. While TVS Wego and TVS Jupiter claimed
top spots, TVS Sport, TVS Star City+ featured in the top three in economy motorcycles and TVS
Apache RTR 160 and 180 in the top three in premium category. TVS Motor Company’s customer
inspired engineering approach, has enabled it to introduce the widest product range that caters to all
segments of the two and three wheeler industry in India. Total customer satisfaction is achieved
through excellence in quality that stems from the company’s management philosophy which is based
on the five pillars of TQM (Total Quality Management). Quality awareness therefore percolates
through the entire organisation from new product development to after sales services.

PRODUCTS:

TVS Motor Company’s products straddle all industry segments with TVS Sport and TVS StaR City+
in the economy segment, TVS Phoenix 125 in the executive segment and TVS Apache series RTR in
the performance segment. The company also manufactures TVS Max4R, a product dedicated to rural
commuters. The scooter segment of the company comprises of TVS Scooty Pep+, TVS Scooty
Streak, TVS WEGO, TVS Jupiter and TVS Scooty Zest while TVS XL Super and Heavy Duty
comprise the mopeds segment. The company’s three-wheeler TVS King is India’s first 200 cc auto
rickshaw with electric start and elegant styling, available in Petrol, LPG, CNG and Diesel
versions.

DISTRIBUTION:

Today TVS Motor functions through a strong nationwide network of more than 3500 touch points
including dealers, authorised service centres and other certified points across all the states in India.

GLOBAL PRESENCE:

TVS Motor Company’s wholly owned subsidiary - PT TVS Motor Company Indonesia,
manufactures TVS Neo, TVS Rockz & TVS Tormax - the new generation of bebeks, to cater to
ASEAN markets. The motorcycle portfolio of PT TVS Motor, Indonesia includes TVS Apache RTR
160, TVS Apache RTR 180 and TVS Apache RTR 180 ABS. The company recently introduced TVS
Dazz, its first offering in the automatic skubek space. Currently TVS Motor Company has
international presence in more than 60 countries in Asian, African and Latin American Continents.

BEYOND BUSINESS- SRINIVASAN SERVICES TRUST:

Srinivasan Services Trust (SST), the social arm of Sundaram-Clayton Limited and TVS Motor
Company for charitable purposes was established in 1996 and has been promoting holistic and
sustainable development of rural communities in TN, Karnataka, Maharashtra and Himachal Pradesh
Since inception, SST has been actively engaging in community development work in order to
enhance the socio-economic status of the people through a multi-sector approach of strengthening
the education system, providing access to better economic improvement, water and irrigation
facilities, improving health services and sanitation facilities, developing community infrastructure
and creating a clean and green environment. The work of SST has changed the lives of people in
more than 1200 Villages across Tamil Nadu, Karnataka, Maharashtra and Himachal Pradesh.
SST has won several awards in recognition of its achievements in the field of rural development and
nation building, the most recent being the prestigious Times Of India Social Impact Award on
Advocacy & Empowerment in Corporate category in 2013.

FUTURE OUTLOOK:
With technology and innovation as its key driver, TVS Motor has invested significantly in research
and development and is committed to bringing out new generation products which would redefine
segments, while consolidating and strengthening the existing position of TVS Motor Company in the
two and there wheeler segments, worldwide.

MISSION:

We are committed to being a highly profitable, socially responsible, and leading

manufacturer of high value for money, environmentally friendly, lifetime personal
transportation products under the TVS brand, for customers predominantly in Asian
markets and to provide fulfillment and prosperity for employees, dealers, and suppliers.

VISION:

Driven by the customer

TVS Motor will be responsive to customer requirements consonant with its core competence and
profitability. TVS Motor will provide total customer satisfaction by giving the customer the right
product, at the right price, at the right time.

The Industry Leader

TVS Motor will be one among the top two two-wheeler manufacturers in India and one among the
top five two-wheeler manufacturers in Asia.

Global overview
TVS Motor will have profitable operations overseas especially in Asian markets,
capitalizing on the expertise developed in the areas of manufacturing, technology and
marketing. The thrust will be to achieve a significant share for international business in the total
turnover.

At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking against
international leaders.

Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by
adopting TQM as a way of life. TVS Motor believes in the importance of the process.
People and projects will be evaluated both by their end results and the process adopted.

The Human Factor

TVS Motor believes that people make an organization and that its well-being is dependent on the
commitment and growth of its people. There will be a sustained effort through systematic training
and planning career growth to develop employees' talents and enhance job satisfaction. TVS Motor
will create an enabling ambience where the maximum selfactualisation of every employee is
achieved. TVS Motor will support and encourage the process of self-renewal in all its employees and
nurture their sense of self-worth.

Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and Environmental aspects with all
business activities and ensures the protection of employees and environment including development
of surrounding communities. TVS Motor strives for long-term relationships of mutual trust and
interdependence with its customers, employees, dealers, and suppliers.

CORPORATE SOCIAL RESPONSIBLITIES:

The Policy shall apply to all CSR initiatives and activities taken up not only at the various work-
centres and locations of the Company but also in any other parts of the country, for benefit of the
society.

CSR VISION:
For the Company, corporate social responsibility inter alia means to be a catalyst in creating self-
reliant villages and transforming communities by deploying skills and resources in key areas such as
economic development, quality education, health care, conservation of environment, maintenance of
infrastructure, art, culture, sports and protection of places of public and historical importance.

OBJECTIVES:
The objectives of the Policy are:
a) Strive for (i) economic development, (ii)healthcare (iii) quality education (iv) conservation of
environment and (v) infrastructure development that positively impact the society at large, especially
the weaker sections of society and rural parts;

b) Embrace responsibility for the Company’s actions and encourage a positive impact through its
activities on eradicating poverty, promoting education, enhancing employment skills, promoting
environment sustainability, amongst others;

c) Empower the people to ensure sustainable and permanent improvement in the lives of the people
living in the villages;

d) Protecting the national heritage, art and culture including restoration of places of public and
historical importance;

e) Setting up public libraries and promotion and developmet of traditional art and handicrafts;

f) Measures for the benefit of armed forces veterans, war widows and their dependents and training
to promote rural sports, nationally recognised sports, paralympic sports and olympic sports;

g) Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal
welfare, agro forestry, conservation of natural resources including safe driniking water and
maintaining quality of soil, air and water;

h) Contribution to Clean Ganga fund, Swatch Bharath Kosh such other funds notified by the Central
Government under CSR provions, from time to 4 time;

i) Rural development projects, disaster management, including relief, rehabilitation and

reconstruction activities; and

j) Slum area development

CSR PROJECTS OR PROGRAMS
The Company shall implement the CSR Policy in accordance with the requirements under Section
135 of the Companies Act, 2013 and the rules framed thereunder, and currently, the Company’s CSR
activities will focus on:

A. ECONOMIC DEVELOPMENT: Empowering women through self help groups; promoting

improved agriculture practices through adoption of scientific methods of agriculture; improve
livestock management through organizing of regular veterinary camps in rural areas; improve
employability by providing enhancing vocational skills (especially among children, women, elderly
and the differently abled) and providing livelihood enhancement projects and career counselling;
survival, protection and education of girl children will be given primary focus to improve child sex
ratio.

B. EDUCATION: Promoting education, including special education, especially among children,

women and the differently abled, including by way of setting up of balwadis in rural areas;
establishing village level adult education centres, contributing towards improving the infrastructure
of schools by building additional classrooms and other infrastructure (such as public libraries),
providing study and play materials, and providing special care to introduce digital technology in
primary and secondary education for improving quality of education.

C. ENVIRONMENT: Ensuring environmental sustainability, ecological balance, protection of flora

and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of
soil, air and water, including by way of : (i) educating the public on effective solid waste
management; (ii) construction and periodic cleaning of drains for free flow of liquid waste; (iii)
undertaking afforestation measures and supporting conservation measures to protect forest areas and
prevent forest fires; and (iv) construction of various water and soil conservation structures, including
rain water harvesting systems to increase the groundwater level, reduce soil erosion and increase
crop cultivation area.

D. HEALTH: Reduction of infant mortality and maternal mortality rate; reduction of malnutrition
among children; reduction of anaemia among women by conducting nutrition demonstration
programmes and supply 5 of iron and calcium supplements to women and especially people
belonging to the weaker section of society; setting up old age homes, day care centres and such other
facilities for senior citizens and measures for reducing inequalities faced by socially and
economically backward groups; reduction of open defecation by individuals by construction of
toilets and promoting awareness of the disadvantages of open defecation; and promoting access to
safe drinking water.

E. HUNGER, POVERTY, MALNUTRITION AND HEALTH: Eradicating extreme hunger, poverty

and malnutrition, promoting preventive healthcare and sanitation, and making available safe drinking
water.

F. NATIONAL HERITAGE, ART AND CULTURE: Protecting national heritage, art and culture
including restoration of buildings and sites of historical importance and works of art, setting up
public libraries and promoting and developing traditional arts and handicrafts.

BOARD OF DIRECTORS:
VENU SRINIVASAN

PROF SIR RALF DIETER SPETH

SUDARSHAN VENU

K N RADHAKRISHNAN
C R DUA

R GOPALAN

LALITA D GUPTE

T KANAN
KUOK MENG XIONG

H LAKSHMANAN

H K SINGH

DR LAKSHMI VENU
MILE STONES:

1980 TVS Motor launched India‟s first two–seater 50cc moped –– TVS 50.

1984 The two–wheeler major became the first Indian company to introduce 100cc Indo–
Japanese motorcycles.

1994 It launched India‟s first indigenous scooterette –– TVS Scooty, a 100cc model.

1996–97 Introduced India‟s first catalytic converter–enabled motorcycle, the 110cc Shogun.
Launched India‟s first 5– speed motorcycle, the Shaolin.

2000 Launched TVS Fiero, India‟s first 150cc, 4–stroke motorcycle.

2001 Launched TVS Victor, 4–stroke 110cc motorcycle, India‟s first fully indigenously designed
and manufactured motorcycle.

2002 TVS becomes the world‟s first two–wheeler company to win the world‟s most
prestigious recognition in Total Quality Management – the Deming Award 2002. TVS
wins the Technology Award from Ministry of Science, Government of India for successful
commercialization of indigenous technology.

2004 Launched TVS Centra, a world class 4–stroke 100cc motorcycle with revolutionary VT– I
engine for best in class mileage. Launched TVS Star, a 100cc motorcycle ideal for the rough terrain.
TVS wins TPM Excellence award from Japan Institute of Plant Maintenance (JIPM). TVS wins
Outstanding design Excellence Award for TVS Scooty Pep.

2005– 06 TVS launches its Indonesian plant. Launched TVS Apache, which set the youth’s
imagination on fire. Apache went on to be the Bike of the year for 2006, winning six prestigious
awards.

2007 TVS Motor Company rolls out seven new products. TVS launches its Himachal Pradesh Plant
at Nalagarh.

2008–09 Apache Refresh with Rear Disc Brakes was launched in December 2008. TVS Motor
company bags two coveted IT awards in September 2008 –– SAP ACE 2008 Award and 2008
Symantec South Asia Visionary Award. Scooty Pep was launched with balancing wheels in August.
2008 Scooty Wimbledon Collection launched in June 2008. Apache RTR FI was launched
June 2008. TVS Motor Company launched the revolutionary 125cc Flame in March 2008.
TVS made by its foray into the three–wheeler market with TVS King in March 2008. 2009 TVS
unveils „High performance‟ with Apache RTR 180 in June 2009. TVS scooty Streak was launched.
TVS Flame SR 125 launched was June 2009.
CHAPTER 2

FINANCIAL ANALYSIS

Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related
transactions to determine their performance and suitability. Typically, financial analysis is used to
analyse whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary
investment.

Financial analysis is used to evaluate economic trends, set financial policy, build long-term plans for
business activity, and identify projects or companies for investment. This is done through the
synthesis of financial numbers and data. A financial analyst will thoroughly examine a company's
financial statements—the income statement, balance sheet, and cash flow statement. Financial
analysis can be conducted in both corporate finance and investment finance settings. One of the most
common ways to analyse financial data is to calculate ratios from the data in the financial statements
to compare against those of other companies or against the company's own historical performance.
Make other decisions that allow management to make an informed selection on various alternatives
in the conduct of its business Financial analysis is the process of evaluating businesses, projects,
budgets, and other finance-related transactions to determine their performance and suitability.
Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or
profitable enough to warrant a monetary investment.

Objectives of Financial Analysis:

Let us look at some of the main objectives of financial analysis.

Reviewing the performance of a company over the past periods:

To predict the future prospects of the company, past performance is analysed. Past performance is
analysed by reviewing the trend of past sales, profitability, cash flows, return on investment, debt-
equity structure and operating expenses, etc.

Assessing the current position & operational efficiency:

Examining the current profitability & operational efficiency of the enterprise so that the financial
health of the company can be determined. For long-term decision making, assets liabilities of the
company are reviewed. Analysis helps in finding out the earning capacity & operating performance
of the company.

Predicting growth & profitability prospects:

The top management is concerned with future prospects of the company. Financial analysis helps
them in reviewing the investment alternatives for judging the earning potential of the enterprise.
With the help of financial statement analysis, assessment and prediction of the bankruptcy and
probability of business failure can be done.

Loan Decision by Financial Institutions and Banks:

Financial analysis helps the financial institutions, loan agencies & banks to decide whether a loan
can be given to the company or not. It helps them in determining the credit risk, deciding the terms
and conditions of a loan if sanctioned, interest rate, maturity date etc.