TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1–4

CHAPTER 2 REVIEW OF LITERATURE 5 – 13

INDUSTRY AND COMPANY

CHAPTER 3 14 – 21
PROFILE

DATA ANALYSIS AND

CHAPTER 4 22 – 34
INTERPRETATION

FINDINGS, SUGGESTIONS
CHAPTER 5 35 – 36
& CONCLUSION

BIBLIOGRAPHY

APPENDIX
 LIST OF TABLES

TABLE
TITLE PAGE NO:
NO:

4.1 Table showing current ratio 22

4.2 Table showing quick ratio 23

4.3 Table showing debt equity ratio 24

4.4 Table showing proprietary ratio 25

4.5 Table showing leverage ratio 26

4.6 Table showing net profit ratio 27

4.7 Table showing gross profit ratio 28

4.8 Table showing return on shareholder's fund ratio 29

4.9 Table showing total asset turnover ratio 30

4.10 Table showing fixed asset turnover ratio 31

4.11 Table showing stock turnover ratio 32

4.12 Table showing earnings per share ratio 33

4.13 Table showing dividend per share ratio 34

 LIST OF FIGURES

FIGURE
TITLE PAGE NO:
NO:

4.1 Figure showing current ratio 22

4.2 Figure showing quick ratio 23

4.3 Figure showing debt equity ratio 24

4.4 Figure showing proprietary ratio 25

4.5 Figure showing leverage ratio 26

4.6 Figure showing net profit ratio 27

4.7 Figure showing gross profit ratio 28

4.8 Figure showing return on shareholder's fund ratio 29

4.9 Figure showing total asset turnover ratio 30

4.10 Figure showing fixed asset turnover ratio 31

4.11 Figure showing stock turnover ratio 32

4.12 Figure showing earnings per share ratio 33

4.13 Figure showing dividend per share ratio 34

 CHAPTER 1
INTRODUCTION
1.1 Introduction

Finance is the life blood of business, finance represents money management

and process of acquiring funds. Financial analysis refers to an assessment of
the viability, stability, and profitability of a business, sub-business or it is
performed by professionals who prepare reports using ratios and other
techniques, that make use of information taken from financial statements and
other reports. These reports are usually presented to top management as one of
their bases in making business decisions.

Financial performance analysis includes analysis and interpretation of financial

statements in such a way that it undertakes full diagnosis of profitability and
financial soundness of business the financial analysis program provide vital
methodology of financial analysis.

Many business owners and company managers have found that insight gained
from their examination of company financial statements can be invaluable.
Such insight can help businesses improve their profitability, cash flow, and
value. The three main sources of data for financial analysis are a company's
balance sheet, income statement, and cash flow statement.

A company's overall financial health can be assessed by examining three major

factors: its liquidity, leverage, and profitability. All three of these factors are
internal measures that are largely within the control of a company's
management. It is important to note, however, that they may also be affected by
other conditions such as overall trends in the economy that are beyond
management's control. Liquidity refers to a company's ability to pay its current
bills and expenses. In other words, liquidity relates to the availability of cash
and other assets to cover accounts payable, short-term debt, and other
liabilities. Leverage refers to the proportion of a company's capital that has
been contributed by investors as compared to creditors. In other words,

1
leverage is the extent to which a company has depended upon borrowing to
finance its operations. A company that has a high proportion of debt in relation
to its equity would be considered highly leveraged. Profitability refers to
management's performance in using the resources of a business. Many
measures of profitability involve calculating the financial return that the
company earns on the money that has been invested. This study is based on
financial performance analysis of TVS motor company.

1.2 Statement of problem

Financial performance of a company is used for evaluating the common parts

for obtaining a better view on firm‟s performance and position. In order to
analyse financial efficiency in terms of profitability, solvency and liquidity
various accounting ratios can be used. Financial analysis helps both creditors
and investors to predict future performance as well as comparison. It mainly
helps in showing out companies strength and weakness. The aim of the study is
to evaluate the financial performance of TVS motor company.

1.3 Scope of study

The study entitled “A Study on Financial Performance analysis of TVS Motor

Company” is to analyse the financial performance of tvs motor company for
last 5 years. The study is based on financial position of the firm by using ratio
analysis. This study will help the management to understand more possibilities.

1.4 Objectives of the study

The objectives of the study are as follows:

1.4.1 To study the financial performance of TVS Motor Company.

1.4.2 To analyse the profitability position of the company.

1.4.3 To know the liquidity position of the company.

2
1.5 Research methodology

1.5.1 Research design

Research design indicates the method and procedure of conducting research
study. In pursuance of objectives stated above, the following research design is
used for conducting the study.

1.5.2 Nature of the study

The present study adopts descriptive and analytical in nature with support of
secondary data.

1.5.3 Sources of data

The study is based on secondary data. In this study secondary data is collected
from annual report of TVS motor company, published materials in the form of
reports, articles from journal and websites.

1.5.4 Period of study

The present study has gathered secondary sources of information for a period
of 5 years from 2015-16 to 2019-20.

1.6 Tools of analysis

The tool used for analysis is ratio analysis.

1.7 Limitations of the Study

The period for the study is of last 5 years so it‟s not possible to show life time
performance of company. Most of the information is collected from the
financial statements. So the limitations of financial statements may affect the
study.

3
1.8 Chapterisation

Chapter 1 Introduction: This chapter deals with introduction of the project

report, statement of problem, scope, objective of study, research methodology
and limitation of study.
Chapter 2 Review of Literature: This chapter deals with the literature
reviews that collected based on topic.
Chapter 3 Industry & company profile: This chapter deals with industry and
company profile.
Chapter 4 Data Analysis and Interpretation: This chapter deals with the
data analysis and interpretation of study.
Chapter 5 Findings, Suggestions, Conclusion: This chapter includes the
findings, suggestions and conclusions of the study.

4
 CHAPTER 2
REVIEW OF LITERATURE
This chapter deals with conceptual review and empirical literature. conceptual
review of framework means a research on perception about scope and structure
of problem. Empirical literature is published in books and in scholarly, peer-
reviewed journals.

2.1 conceptual review

Meaning
Financial Analysis is the process of identifying the financial strength and
weaknesses of the firm by properly establishing relationship between items of
financial statements. A financial statement is an organized collection of data
according to logical and conceptual framework. Financial statement analysis
should be understandable, relevant, reliable and comparable. Reported assets,
liabilities, equity, income and expenses are directly related to an organization's
financial position. Financial statement analysis are intended to be
understandable by readers who have “a reasonable knowledge of business and
economic activities and accounting and who are willing to study the
information diligently”.

Definition

According to Lev- “financial statement analysis is an information processing

system design to provide data for decision making models, such as the portfolio
selection model, bank lending decision models and corporate financial
models”.
According to john Myer, “financial statement analysis is largely a study of
relationship among the various financial factors in a business as disclosed by
single set of statements and a study of the trend of these factors as shown in a
series of statements”.
According to Kennedy and Muller, “the analysis and interpretation of financial
statements reveal each and every aspect regarding the well-being financial
soundness, operational efficiency and credit worthiness of the concern
concerned”.
Types of financial analysis

Two types of analysis are undertaken to interpret the position of an enterprise.

they are vertical analysis and horizontal analysis. The companies act, 1956
permits the companies to present the financial statements in vertical as well as
horizontal form.

Vertical analysis

It is the analysis of relationship as between different individual components. It

is also the analysis between these components. It is also the analysis between
these components and their totals for a given period of time it is also regarded
as static analysis. Comparison of current assets to current liabilities or
comparisons of debt to equity for one point of time are examples of vertical
analysis. Thus, the vertical analysis can be made in the following ways :

• By preparation of common size statements of the two similar units.

• By preparing common size statement of different years of the same
business unit.
Horizontal analysis

It is the analysis of changes in different components of the financial statements

over different periods with help of a series of statements. Such an analysis
makes it possible to study periodic fluctuations in different components of the
financial statements. Study of trends in debt or share capital or their
relationship over the past.

Tools used for analysis

1) Liquidity ratios

The term liquidity refers to firm‟s ability to pay its current liabilities out of its
current asset. Liquidity ratios are used to measure the liquidity position of the
firm.
a) Current Ratio

Current ratio establishes the relationship between total current assets and total
current liabilities. Generally current ratio of 2:1 is considered satisfactory or
ideal.

Current ratio = current asset/current liability

b) Quick Ratio

Quick Ratio is the ratio of liquid assets to current liability. It is also called acid
test ratio. Ratio of 1:1 is considered ideal.

Quick ratio = quick asset/current liability

2) Solvency Ratios

Solvency refers to the ability of the firm to pay its outside liabilities both short
term and long term. Solvency ratios are used to analyse long term financial
position of the business.

a) Debt Equity Ratio

This ratio indicates the relative proportion of debt and equity in financing the
asset of the firm. In short it expresses the relationship between external equity
and internal equity of a company.

Debt equity ratio = debt/equity

b) Proprietary Ratio

Proprietary ratio establishes the relationship between shareholders fund and

total asset. It is also called net worth ratio. Generally ratio of 0.5:1 is
considered as ideal.

Proprietary ratio = shareholders fund/total asset

c) Leverage Ratios

This ratio expresses the relationship between total asset and total liability of a
company. This ratio is also called as total asset to total debt ratio.

Leverage ratio = total asset/total liability

3) Profitability Ratios

To the management, profit is the measure of efficiency and control of the

business. Profitability can be easily meas ured by profitability ratios.

a) Gross profit ratio

This ratio shows the relationship between gross profit and net sales. The main
objective of gross profit ratio is to measure the efficiency with which a firm
produces its product. The ideal ratio is 20% to 25%.

Gross profit ratio = gross profit/net sales *100

b) Net profit ratio

Net profit ratio is the ratio of net profit earned by the business and its net sales.
It is a measure of overall profitability. Ideal net profit ratio is 5% to 10%.

Net profit ratio = net profit/net sales *100

c) Return on shareholders fund

It is the ratio of net profit to shareholders fund or net worth. It measures the
profitability from the shareholders point of view. This ratio is also called the
mother of all ratios.

Return on shareholders fund = net profit after interest and tax/shareholders

fund*100

4) Activity ratios

Activity ratios show how efficiently a firm uses its available resources or
assets. These ratios indicate efficiency in asset management.
a) Total asset turnover ratio

Total asset turnover ratio measures the efficiency of company's use of its assets
in generating sales revenue or sales income of the company.

Total asset turnover ratio=net sales/total asset

b) Fixed asset turnover ratio

Fixed asset turnover ratio is the ratio of sales to the value of fixed assets. It
indicates how well the business is using its fixed assets to generate sales.

Fixed asset turnover ratio=net sales/ net fixed asset

c) Stock turnover ratio

Stock turnover ratio indicates relationship between cost of goods sold and
average inventory. It indicates firms efficiency to convert inventory to sales.

Stock turnover ratio=cost of goods sold/average inventory

5) Market Test ratios

Market Test ratios are used for evaluating the shares and stock which are traded
in the market.

a) Earnings per share

This ratio indicates profit available for equity share.

Earnings per share= net profit available to equity shareholders/number of

equity shares

b) Dividend per share

Dividend per share is the sum of declared dividend issued by a company for
every ordinary share outstanding.

Dividend per share= dividend paid to equity shareholders/number of equity

shares
Advantages of financial analysis

• Pattern detection and forecasting: Financial statements have the

ability to reveal earnings per year, sales and profits accrued. Though
sales figures may vary, the financial planners will be in a position to find
a correlative pattern over a few years of data of sales-figures. Take the
example of a company that may reveal a trend of sales increases
whenever new products are marketed and released. Sales could drop
after let‟s say a year of the product launch. This trend analysis is a huge
company benefit as it forecasts a market life of about a year is useful, as
it shows sales patterns for product launches, a sales drop after a year,
and a need for new products in a year‟s time.

• Budget outline in real-time: Decision making for planning the future,

budget estimations, corrective actions required for efficient budgeting,
and many such decisions rely heavily on financial statements. The
statements reveal how much you can spend on marketing or product
launches, strategizing for marketing-campaigns, future expansions,
requirements of funding etc. Information is power in decision making
and planning. This in term improves productivity, budget overruns and
such to keep the company healthy and increase profits year after year.

Disadvantages of financial analysis

• Based on patterns of the market: A big disadvantage of the financial

statements analysis and use for making strategic decisions based on
figures and data pertaining to current market conditions which may
fluctuate. Past performance is a good indicator and motivator. It cannot,
however, guarantee the fluctuations and future demands. A cautious
 approach is called for in interpretation of financial ratios and statements
to prevent excessive risk-taking based purely on forecasts.

• Analysis of at-one-time basis: As the name suggests the forecast and

analysis is applicable at that one time only. It does not reveal or compare
the past performance or future forecast at one glance. One will need to
exercise caution by generating and reporting on a continuous basis
rather than a one-time basis. Such extrapolation of data and financial
analysis undertaken frequently is crucial to the company‟s health and
decision-making abilities.

2.2 Empirical literature

Jothi,k & Geethalakshmi,A.(2016) this study tries to evaluate the profitability

& financial position of selected companies of Indian automobile industry using
statistical tools like, ratio analysis, mean, standard deviation, correlation. The
study reveals the positive relationship between profitability, short term and
long term capital.

Maheswari, V. (2015) made an attempt to analyse the financial soundness of

the Hero Honda motors limited have identified three factors, namely liquidity
position, solvency position and profitability position based on the study of
period 2002 to 2010 using ratio analysis.

Huda Salhe Meften & Manish Roy Tirkey (2014) have studied the financial
analysis of Hindustan petroleum corporation ltd. The study is based on
secondary data. The company has got excellent gross profit ratio and trend is
rising in with is appreciable indicating efficiency in production cost. The net
profit for the year 2010-11 is excellent & it is 8 times past year indicating
reduction in operating reduction in operating expenses and large proportion of
net sales available to the shareholders of company.
Idhayajothi, R et al. (2014) the main idea behind his study is to analyse the
financial performance of Ashok Leyland ltd. at Chennai. The result shows that
financial performance is sound and also suggested to improve financial
performance by reducing the various expenses.

Daniel A. Moses Joshunar (2013) the study has been conducted to identify the
financial strength and weakness of the Tata motors Ltd. using past 5 year
financial statements. Trend analysis & ratio analysis used to comment of
financial status of company. Financial performance of company is satisfactory
and also suggested to increase the loan levels of company for the better
performance.

Rapheal Nisha (2013) tries to evaluate the financial performance of Indian

tyre industry. The study was conducted for period 2003-04 to 2011-12 to
analyse the performance with financial indicators, sales trend, export trend,
production trend etc. The result suggests the key to success in industry is to
improve labour productivity and flexibility and capital efficiency.

Sharma Nishi (2011) studied the financial performance of passenger and

commercial vehicle segment of the automobile industry in the terms of four
financial parameters namely liquidity, profitability, leverage and managerial
efficiency analysis for the period of decade from 2001-02 to 2010-11. The
study concludes that profitability and managerial efficiency of Tata motors as
well as Mahindra & Mahindra ltd are satisfactory but their liquidity position is
not satisfactory. The liquidity position of commercial vehicle is much better
than passenger vehicle segment.

Sudarsana Reddy (2003) studied the Financial Performance of Paper industry

in AP. The main objectives set for the study are to evaluate the financing
methods and practices to analyse the investment pattern and utilization of fixed
assets, to ascertain the working capital condition, to review the profitability
performance and to suggest measures to improve the profitability. The data
collected have been examined through ratios, trend, common size, comparative
financial statement analysis and statistical tests have been applied in
appropriate context. The main findings of the study are that A.P paper industry
needs the introduction of additional funds along with restructuring of finances
and modernization of technology for better operating performance.

Pai et al. (1995) studied the financial performance of diversified firms,. An

effort was made to study the relationship between diversified firms and their
financial performance. Seven large firms having different products-both related
and otherwise-in their portfolio and operating in diverse industries were
analysed. A set of performance measures / ratios was employed to determine
the level of financial performance. The results reveal that the diversified firms
studied have been healthy financial performance. However, variation in
performance from one firm to another has been observed and statistically
established.

Jagan Mohan Rao (1993) in his study Financial appraisal of Indian

Automotive Tyre Industry‟. Emphasis on the financial position of the
automotive tyre industry. The study was intended to probe into the financial
condition-financial strength and weakness-of the Indian tyre industry. To the
end, a modest attempt has been made to measure and evaluate the financial
performance through inter-company and inter-sectoral analysis over a given
period of time (1981-1988). The main findings are that fixed assets utilisation
in many of the tyre undertakings was not as productive as expected and
inventory was managed fairly well. The tyre industry's overall profit
performance was subjected to inconsistency and ineffective.
 CHAPTER 3
INDUSTRY AND COMPANY PROFILE
This chapter deals with Industry profile and company profile. Industry profile
shows an insight into industry. company profile describes business essential
elements.

3.1 Industry Profile

Automobile industry
India became the fourth largest auto market in 2019 displacing Germany with
about 3.99 million units sold in the passenger and commercial vehicles
categories. India is expected to displace Japan as the third largest auto market
by 2021.The two wheelers segment dominates the market in terms of volume
owing to a growing middle class and a young population. Moreover, the
growing interest of the companies in exploring the rural markets further aided
the growth of the sector. India is also a prominent auto exporter and has strong
export growth expectations for the near future. In addition, several initiatives
by the Government of India and major automobile players in the Indian market
is expected to make India a leader in the two-wheeler and four-wheeler market
in the world by 2020.
Market size
Domestic automobiles production increased at 2.36% CAGR between financial
year2016-2020 with 26.36 million vehicles being manufactured in the country
in financial year 2020. Overall, domestic automobiles sales increased at 1.29%
CAGR between financial year 2016-2020 with 21.55 million vehicles being
sold in financial year 2020.Two wheelers and passenger vehicles dominate the
domestic Indian auto market. Passenger car sales are dominated by small and mid-
sized cars. Two wheelers and passenger cars accounted for 80.8% and 12.9%
market share respectively accounting for a combined sale of over 20.1 million
vehicles in financial year 20.Overall, automobile export reached 4.77 million
vehicles in financial year 20, growing at a CAGR of 6.94% during financial year
2016-2020. Two wheelers made up 73.9% of the vehicles exported, followed by
passenger vehicles at 14.2%, three wheelers at 10.5% and commercial
vehicles at 1.3%.EV sales, excluding E-rickshaws, in India
witnessed a growth of 20% and reached 1.56 lakh units in financial year 2020
driven by two wheelers.
Premium motorbike sales in India recorded seven-fold jump in domestic sales,
reaching 13,982 units during April-September 2019. The sale of luxury cars
stood between 15,000 to 17,000 in the first six months of 2019.

Investments
In order to keep up with the growing demand, several auto makers have started
investing heavily in various segments of the industry during the last few
months. The industry has attracted Foreign Direct Investment (FDI) worth US$
24.5 billion between April 2000 and June 2020, according to the data released
by Department for Promotion of Industry and Internal Trade (DPIIT).
Some of the recent/planned investments and developments in the automobile
sector in India are as follows:

• In October 2020, MG Motors announced its interest in investing Rs.

1,000 crore (US$ million) to launch new models and expand operations
in spite of the anti-China sentiments.
• In October 2020, Ultraviolette Automotive, a manufacturer of electric
motorcycle in India, raised a disclosed amount in a series B investment
from GoFrugal Technologies, a software company.
• In September 2020, Toyota Kirloskar Motors announced investments of
more than Rs 2,000 crore (US$ 272.81 million) in India directed
towards electric components and technology for domestic customers and
exports.
• During early September 2020, Mahindra & Mahindra singed a MOU
with Israel-based REE Automotive to collaborate and develop
commercial electric vehicles.
• Volkswagen announced merger of its three entities in India, the new
entity will be called Skoda Auto Volkswagen India Private Limited.
 • In April 2020, TVS Motor Company bought UK‟s iconic sporting
motorcycle brand, Norton, for a sum of about Rs. 153 crore (US$ 21.89
million), making its entry into the top end (above 850cc) segment of the
superbike market.
• As of May 2019, Jaguar Land Rover (JLR) launched its locally
assembled Range Rover Velar, making JLR cars more affordable by
quite some margin.
• In March 2020, Lithium Urban Technologies partnered with renewable
energy solutions provider, Fourth Partner Energy, to build charging
infrastructure across the country.
• In January 2020, Tata AutoComp Systems, the auto-components arm of
Tata Group entered a joint venture with Beijing-based Prestolite Electric
to enter the electric vehicle (EV) components market.
• In December 2019, Force Motors planned to invest Rs. 600 crore (US$
85.85 million) to develop two new models over the next two years.
• In December 2019, Morris Garages (MG), a British automobile brand,
announced plans to invest an additional Rs. 3,000 crore (US$ 429.25
million) in India.
• Audi India planned to launch nine all-new models including Sedans and
SUVs along with futuristic E-torn EV by end of 2019.
• MG Motor India planned to launch MG ZS EV electric SUV in early
2020 and have plans to launch affordable EV in the next 3 -4 years.
• BYD-Olectra, Tata Motors and Ashok Leyland will supply 5,500
electric buses for different state departments.

Government initiatives
The Government of India encourages foreign investment in the automobile
sector and has allowed 100% foreign direct investment (FDI) under the
automatic route.
Some of the recent initiatives taken by the Government of India are -
 • Under Union Budget 2019-20, the Government announced to provide
additional income tax deduction of Rs. 1.5 lakh (US$ 2,146) on the
interest paid on the loans taken to purchase EVs.
• The Government aims to develop India as a global manufacturing centre
and a Research and Development (R&D) hub.
• Under NATRiP, the Government of India is planning to set up R&D
centres at a total cost of US$ 388.5 million to enable the industry to be
on par with global standards.
• The Ministry of Heavy Industries, Government of India has shortlisted
11 cities in the country for introduction of EVs in their public transport
systems under the FAME (Faster Adoption and Manufacturing of
(Hybrid) and Electric Vehicles in India) scheme. The Government will
also set up incubation centre for start-ups working in the EVs space.
• In February 2019, the Government of India approved FAME-II scheme
with a fund requirement of Rs. 10,000 crore (US$ 1.39 billion) for
financial year 20-22.

Achievements
Following are the achievements of the Government in the last four years:

• In H12019, automobile manufacturers invested US$ 501 million in

India‟s auto-tech start-ups according to Venture intelligence.
• Investment flow into EV start-ups in 2019 (till end of November)
increased nearly 170% to reach US$ 397 million.
• On 29th July 2019, Inter-ministerial panel sanctioned 5,645 electric buses
for 65 cities.
• NATRiP‟s proposal for “Grant-In-Aid for test facility infrastructure for
EV performance Certification from NATRiP Implementation Society”
under the FAME Scheme was approved by Project Implementation and
Sanctioning Committee (PISC) on 3rd January 2019.
• Under NATRiP, following testing and research centres have been
established in the country since 2015-
 • International Centre for Automotive Technology (ICAT),
Manesar
• National Institute for Automotive Inspection, Maintenance &
Training (NIAIMT), Silchar
• National Automotive Testing Tracks (NATRAX), Indore
• Automotive Research Association of India (ARAI), Pune
• Global Automotive Research Centre (GARC), Chennai
• SAMARTH Udyog - Industry 4.0 centres: „Demo cum experience‟
centres are being set up in the country for promoting smart and
advanced manufacturing helping SMEs to implement Industry 4.0
(automation and data exchange in manufacturing technology).

3.2 Company Profile

TVS Motor Company Limited (TVS) is an Indian multinational motorcycle

company headquartered at Chennai, India. It is the third largest motorcycle
company in India with a revenue of over Rs 20,000 crore (US$2.8 billion) in
2018–19. The company has an annual sales of 3 million units and an annual
capacity of over 4 million vehicles. TVS Motor Company is also the 2nd
largest exporter in India with exports to over 60 countries. TVS Motor
Company Ltd (TVS Motor), a member of the TVS Group, is the largest
company of the group in terms of size and turnover. T. V. Sundaram Iyengar
began with Madurai's first bus service in 1911 and founded TVS, a company in
the transportation business with a large fleet of trucks and buses under the
name of Southern Roadways.

Early history

Sundaram Clayton was founded in 1962 in collaboration with Clayton

Dewandre Holdings, United Kingdom. It manufactured brakes, exhausts,
compressors and various other automotive parts. The company set up a plant
at Hosur in 1976, to manufacture mopeds as part of their new division. In
1980, TVS 50, India's first two-seater moped rolled out of the factory at Hosur
in Tamil Nadu, India. A technical collaboration with the Japanese auto giant
Suzuki Ltd resulted in the joint-venture between Sundaram Clayton Ltd and
Suzuki Motor Corporation, in 1987. Commercial production of motorcycles
began in 1989.

Suzuki relationship

TVS and Suzuki shared a 1-year-long relationship that was aimed at

technology transfer for design and manufacture of two-wheelers specifically
for the Indian market. Re-christened TVS-Suzuki, the company brought out
several models such as the Suzuki Supra, Suzuki Samurai, Suzuki Shogun and
Suzuki Shaolin. In 2001, after separating ways with Suzuki, the company was
renamed TVS Motor, relinquishing its rights to use the Suzuki name. There
was also a 30-month moratorium period during which Suzuki promised not to
enter the Indian market with competing two-wheelers.

Recent launches include the flagship model TVS Apache RR 310, the TVS
Apache RTR 200, TVS Victor and TVS XL 100. TVS has recently won 4 top
awards at J.D. Power Asia Pacific Awards 2016, 3 top awards at J.D. Power
Asia Pacific Awards 2015 and Two-Wheeler Manufacturer of the Year at
NDTV Car & Bike Awards (2014–15).
In early 2015, TVS Racing became the first Indian factory team to take part in
the Dakar Rally, the world's longest and most dangerous rally. TVS Racing
partnered with French motorcycle manufacturer Sherco, and named the team
Sherco TVS Rally Factory Team. TVS Racing also won the Raid de Himalaya
and the FOX Hill Super Cross held at Sri Lanka. In three decades of its racing
history, TVS Racing has won over 90% of the races it participates in.
In 2016, TVS started manufacturing the BMW G310R, a model co-developed
with BMW Motorrad after their strategic partnership in April 2013. In
December 2018, the Hosur plant where the motorcycle is manufactured rolled
out its 50,000th G310R series unit. On 6 December 2017, TVS launched their
most-awaited motorcycle, the Apache RR 310 in an event at Chennai. The 310
cc motorcycle with an engine which was co-developed with BMW features the
first ever full fairing on a TVS bike, dual-channel ABS, EFI, KYB suspension
kits, etc. It is expected to rival bikes like KTM RC 390, Kawasaki Ninja
250SL, Bajaj Pulsar and Dominar and Honda CBR 250R after hitting the
market. The Apache RR 310 is designed and realised entirely in India.
On 17th April 2020, it has been reported that TVS Motor Company
acquired Norton Motorcycle Company in an all cash deal. In the short term,
they will continue the production of motorcycles at Donington Park using the
same staff.

Characteristics of TVS motors

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 motorcycle. The
list of firsts from the firm include: India's first 2-seater moped – TVS 50,
India's first Digital Ignition - TVS Champ, India's first fully indigenous
motorcycle - Victor, first Indian company to launch ABS in a motorcycle -
Apache RTR Series, Indonesia's first dual-tone exhaust noise technology –
Tormax, and a recent launch - India's first connected scooter TVS
NTORQ which claims to be India's first Bluetooth Connected Scooter with
features like Call Assistance, Navigation, etc.

Current models
• TVS NTORQ
• TVS Jupiter
• TVS Wego
• Apache RTR Series
• TVS Radeon
Awards and recognitions

TVS Motor won the prestigious Deming Application Prize in 2002.In the same
year, the work done for the TVS Victor motorcycle made TVS Motor win the
National Award for successful commercialization of indigenous technology
from the Technology Development Board, Ministry of Science &
Technology, Government of India. In 2004, TVS Scooty Pep won the
'Outstanding Design Excellence Award' from business world magazine and
the National Institute of Design, Ahmedabad.
The effective implementation of Total Productivity Maintenance practices gave
TVS Motor the TPM Excellence Award, given by the Japan Institute of Plant
Maintenance in 2008.The company's chairman, Venu Srinivasan, was
conferred with an honorary Doctorate of Science degree by the University of
Warwick, United Kingdom in 2004, while the Government of India honoured
him with PadmaShri, one of India's highest civilian distinctions in 2010.
Innovative implementation of Information Technology has won TVS Motor the
Ace Award for Most Innovative NetWeaver Implementation in 2007, awarded
by technology major SAP AG, and the Team Tech 2007 Award of Excellence
for Integrated use of Computer-aided engineering Technologies.
 CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
This chapter deals with data analysis and interpretation. In this study analysis had been
done using ratio analysis. Ratio analysis is important technique of analysis of financial
statement;

1.CURRENT RATIO :

Current ratio is one of the most important types of liquidity ratio. It not just serves as a vital
financial metric but also enables both businesses and stockholders to make informed
decisions regarding investments.To further understand how this particular liquidity ratio
comes in handy for users, one must become familiar with more than the current ratio

FORMULA:

Current Ratio = Current Assets / Current Liabilities

Table 4.1 showing current ratio

(Rs. In crores)

Year current asset current liability ratio

2017-18 2183.22 2596.48 0.84:1

2018-19 2434.27 3208.62 0.75:1

2019-20 6372.89 7853.08 0.81:1

2020-21 8331.67 8184.79 1.01:1

2021-22 9746.84 10042.28 0.97:1

(source: compiled from annual report)

INTERPRETATION:
From the above table 4.1 it is understood that the company fails to attain the standard
ratio. Current ratio of 2:1 is considered as ideal ratio.2020-21shows the highest
ratio. Current ratio from 2017-18 to 2021-22 is fluctuating year by year.
 Figure 4.1 showing current ratio

1.2

0.8

0.6

0.4

0.2

0
2017-18 2018-19 2019-20 2020-21 2021-22
2.QUICK RATIO:

The Quick Ratio measures the short-term liquidity of a company by comparing the
value of its cash balance and current assets to its near-term obligations.
Otherwise referred to as the “acid test” ratio, the quick ratio is distinct from the
current ratio since a more stringent criterion is applied to the current assets in its
calculation.

FORMULA:
Quick Ratio = Liquid Assets / Current Liabilities

Table 4.2 showing quick ratio

(Rs. In crores)

year quick asset current liability ratio

2017-18 1157.88 2596.48 0.44:1

2018-19 1255.67 3208.62 0.39:1

2019-20 5290.84 7853.08 0.67:1

2020-21 7017.96 8184.79 0.85:1

2021-22 8555.1 10042.28 0.85:1

(source: compiled from annual report)

INTERPRETATION:
From the above table 4.2 it is understood that quick ratio is less than 1 which
means financial position of company is unsound. Quick ratio of 1:1 is
considered ideal. Quick ratio from 2017-18 to 2021-22 is fluctuating so
company needs to increase the liquid asset to attain standard ratio.
 Figure 4.2 showing quick ratio

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2017-18 2018-19 2019-20 2020-21 2021-22
3. DEBT EQUITY RATIO:

The Debt to Equity ratio (also called the “debt-equity ratio”, “risk ratio”, or “gearing”), is
a leverage ratio that calculates the weight of total debt and financial liabilities against
total shareholders’ equity. Unlike the debt-assets ratio which uses total assets as a
denominator, the D/E Ratio uses total equity. This ratio highlights how a company’s capital
structure is tilted either toward debt or equity financing.

FORMULA:

Debt to Equity Ratio = Total Debt / Shareholders’ Equity

Table 4.3 showing debt equity ratio

(Rs. In crores)

year debt equity ratio

2017-18 557.41 1817.97 0.30:1

2018-19 565.82 2224.82 0.25:1

2019-20 2447.46 2858.28 0.85:1

2020-21 3318.87 3415.94 0.97:1

2021-22 3880.47 3603.04 1.07:1

(source: compiled from annual report)

INTERPRETATION:

From the above table 4.3 it is clear that the company had not reached the standard ratio
except the last year 2021-22. Debt equity ratio of 1:1 is considered as ideal. It shows
that the company tends to use more of the owners fund than the borrowed fund from
2017-18 to 2020-21.Ratios are fluctuating year by. Debt equity ratio of 1:1 is
considered as ideal. It shows that the year.
 Figure 4.3 showing debt equity ratio

1.2

0.8

0.6

0.4

0.2

0
2017-18 2018-19 2019-20 2020-21 2021-22
 PROPRIETORY RATIO:
The proprietary ratio is the inverse of debt ratio. It is a part to whole
comparison. The proprietary ratio measures the amount of funds that investors
have contributed towards the capital of a firm in relation to the total capital that is
required by the firm to conduct operations.

FORMULA:

Proprietary Ratio = Total Equity / Debt + Equity

Table 4.4 showing proprietary ratio

(Rs. In crores)

year shareholders fund total assets ratio

2017-18 1817.97 5146.05 0.35:1

2018-19 2224.82 6127.96 0.36:1

2019-20 2858.28 13190.30 0.21:1

2020-21 3415.94 16696.49 0.20:1

2021-22 3603.04 19280.01 0.18:1

(source: compiled from annual report)

INTREPRETATION:
From the above table 4.4 shows the ratio's is not up to standard. Proprietary
ratio of 0.5:1 or above (or 50% or more) is considered as ideal. This means risk
to creditors of company. Proprietary ratio is fluctuating from year 2017-18 to
2021-22
 Figure 4.4 showing proprietary ratio

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
2017-18 2018-19 2019-20 2020-21 2021-22
LEVERAGE RATIO:

Leverage ratio is one of the most important of the financial ratios as it determines how much
of the capital that is present in the company is in the form of debts. It also analyses how the
company is able to meet its obligations.Leverage ratio becomes more critical as it analyzes
the capital structure of the company and the way it can manage its capital structure so that it
can pay off the debts.

Table 4.5 showing leverage ratio

(Rs. In crores)

year total asset total debt leverage ratio

2017-18 5146.05 3328.08 1.54:1

2018-19 6127.96 3903.14 1.57:1

2019-20 13190.30 10332.02 1.27:1

2020-21 16696.49 13280.55 1.25:1

2021-22 19280.01 15676.97 1.22:1

(source: compiled from annual report)

INTERPRETATION:
From the above table 4.5 it is clear that solvency ratio of the company is more
than 1. leverage ratio of 1:1 is considered as ideal. This means higher degree
of solvency. That indicate the company is solvent because the assets are
sufficiently more than the liabilities of company. Leverage ratio from 207-18 to
2021-22 is fluctuating.
 Figure 4.5 showing leverage ratio

1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2017-18 2018-19 2019-20 2020-21 2021-22
 NET PROFIT RATIO:
The net profit percentage is the ratio of after-tax profits to net sales. It
reveals the remaining profit after all costs of production, administration,
and financing have been deducted from sales, and income taxes
recognized. As such, it is one of the best measures of the overall results of
a firm, especially when combined with an evaluation of how well it is
using its working capital. The measure is commonly reported on a trend
line, to judge performance over time. It is also used to compare the results
of a business with its competitors.

Table 4.6 showing net profit ratio

(Rs. In crores)

year net profit net sales ratio

2017-18 369.33 11377.06 3.24

2018-19 511.24 12462.62 4.10

2019-20 652.35 16294.50 4.00

2020-21 704.67 20159.99 3.49

2021-22 624.62 18849.31 3.31

(source: compiled from annual report)

INTERPRETATION:
From the above table 4.6 it is understood that ratio is not up to standard. The
ideal net profit ratio is 5 to 10%. Net profit ratio shows efficiency and
profitability of business. Higher the ratio better profitability. It is fluctuating
year by year from 2017-18 to 2021-22
 Figure 4.6 showing net profit ratio

4.5

3.5

2.5

1.5

0.5

0
2015-16 2016-17 2017-18 2018-19 2019-20
GROSS PROFIT RATIO :

The gross profit ratio shows the proportion of profits generated by the sale of products or
services, before selling and administrative expenses. It is used to examine the ability of a
business to create sellable products in a cost effective manner. The ratio is of some
importance, especially when tracked on a trend line to see if a business can continue to
provide products to the marketplace for which customers are willing to pay a reasonable
price. There is no optimum ratio amount; it can vary substantially by industry.The gross
margin ratio can be measured in two ways. One is to combine the costs of a direct
material,direct labour and overhead and subtract them from sales, and divide the result
by sales. This is the more comprehensive approach.

Table 4.7 showing gross profit ratio

(Rs. In crores)

year gross profit net sales ratio

2017-18 3350 11377.06 29.44

2018-19 3526 12462.62 28.20

2019-20 5003 16294.5 30.70

2020-21 7843 20159.99 38.90

2021-22 4895 18849.31 25.96

(source: compiled from annual report)

INTERPRETATION:
From the above table 4.7 it is understood that ratios are above standard. So high
gross profit ratio show efficiency of production. Ideal gross profit ratio is 20%
to 25% . This ratio measures the margin of profit available for sales. Ratio's are
fluctuating year by year from 2017-18 to 2021-22.
 Figure 4.7 showing gross profit ratio

45

40

35

30

25

20

15

10

0
2017-18 2018-19 2019-20 2020-21 2021-22
RETURN ON SHAREHOLDERS FUND:

Return on Shareholders’ Funds is one of the ratios of overall profitability group,

which indicates the profitability of a firm in relation to the funds supplied by the
shareholders or owners. This ratio is very important from the owner’s point of view as
it helps the firm to know whether the firm has earned enough returns to repay its
shareholders or not. This ratio is calculated in two ways:

FORMULA: Return on Shareholders Funds = (Net profit after taxes / Total

shareholders' funds) X 100

Table 4.8 showing return on shareholder's fund

(Rs. In crores)

year net profit equity ratio

2017-18 369.33 1817.97 20.31

2018-19 511.24 2224.82 22.97

2019-20 652.35 2858.28 22.82

2020-21 704.67 3415.94 20.62

2021-22 624.62 3603.04 17.33

(source: compiled from annual report)

INTREPRETATION:
From above table 4.8 it is clear that companies return on shareholder's fund is
fluctuating year by year. Ideal form of return on shareholder's fund is 15%. All
year is more than standard ratio, which means there is better utilization of
owners fund and higher productivity of the company.
 Figure 4.8 showing return on shareholder's fund

25

20

15

10

0
2015-16 2016-17 2017-18 2018-19 2019-20
TOTAL ASSET TURNOVER RATIO:
The total asset turnover ratio compares the sales of a company to its asset base.
The ratio measures the ability of an organization to efficiently produce sales,
and is typically used by third parties to evaluate the operations of a business.
Ideally, a company with a high total asset turnover ratio can operate with fewer
assets than a less efficient competitor, and so requires less debt and equity to
operate. The result should be a comparatively greater return to its shareholders.

FORMULA: Net sales ÷ Total assets = Total asset turnover

Table 4.9 showing total asset turnover ratio

(Rs. In crores)

Year net sales total asset ratio

2015-16 11377.06 5146.05 2.21

2016-17 12462.62 6127.96 2.03

2017-18 16294.5 13190.30 1.23

2018-19 20159.99 16696.49 1.20

2019-20 18849.31 19280.01 0.97

(source: compiled from annual report)

INTREPRETATION:
From the above table 4.9 it is clear that total asset turnover ratio tend to
decrease year by year. The ideal ratio is 2.5 or more. This shows that the
company is not using its asset efficiently or production problems.
 Figure 4.9 showing total asset turnover ratio

2.5

1.5

0.5

0
2017-18 2018-19 2019-20 2020-21 2021-22
FIXED TURNOVER RATIO:

Fixed Asset Turnover (FAT) is an efficiency ratio that indicates how well or efficiently a
business uses fixed assets to generate sales. This ratio divides net sales by net fixed assets,
calculated over an annual period. The net fixed assets include the amount of plant ad
equipment.the accumulated depreciation. Generally, a higher fixed asset ratio implies more
effective utilization of investments in fixed assets to generate revenue. This ratio is often
analyzed alongside leverage nd profitability ratios.

FORMULA:

Fixed Asset Turnover = Net Sales / Average Fixed Assets

Table 4.10 showing fixed asset turnover ratio

(Rs. In crores)

year net sales net fixed asset ratio

2017-18 11377.06 2151.53 5.28

2018-19 12462.62 2505.94 4.97

2019-20 16294.5 6306.14 2.58

2020-21 20159.99 7787.39 2.58

2021-22 18849.31 9024.56 2.08

(source: compiled from annual report)

INTREPRETATION:
In table 4.10 it indicates the ratio is fluctuating and in decreasing manner so
that fixed assets are not properly utilised. This ratio indicates how efficiently
the fixed asset are utilised .
 Figure 4.10 showing fixed asset turnover ratio

0
2017-18 2018-19 2019-20 2020-21 2021-22
 STOCK TURNOVER RATIO:
The stock turnover ratio formula is the cost of goods sold divided by average
inventory. The stock turnover ratio determines how soon an enterprise sells its
goods and products and replaces its inventories in a set duration. This ratio helps
improve inventory management as it tells about the speedy or sluggish flow of
inventory being utilized to create sales.

FORMULA:

Stock Turnover Ratio = Cost of Goods Sold /Average

Inventory

Table 4.11 showing stock turnover ratio

(Rs. In crores)

year cost of goods sold average inventory ratio

2015-16 8027.06 906.94 8.85

2016-17 8936.62 1022.23 8.74

2017-18 11291.50 1109.00 10.18

2018-19 12316.99 1301.11 9.46

2019-20 13954.31 1367.27 10.20

(source: compiled from annual report)

INTREPRETATION:
From above table 4.11it is clear that the stock turnover is higher than standard
in every year. stock turnover ratio of 8 times is considered as ideal. Which
means companies inventory management or inventory policy is better. Stock
turnover ratio from 2017 to 18 to 2021-22is fluctuating year by year.
 Figure 4.11 showing stock turnover ratio

10.5

10

9.5

8.5

8
2017-18 2018-19 2019-20 2020-21 2021-22
 EARNINGS PER SHARE RATIO:

The earnings per share ratio (EPS) is the percentage of a company's net income per
share if all profits are distributed to shareholders. The earnings per share ratio tell a lot
about the current and future profitability of a company and can be easily calculated
from the basic financial information of an organization that is easily available online.

FORMULA:

Earnings Per Share Ratio Formula = (Net Income –

Preferred Dividends)/Weighted Average Number of Shares
Outstanding

Table 4.12 showing earnings per share ratio

(Rs. In crores)

year net profit to equity number of equity earnings per share

shareholders shares

2015-16 369.33 47.51 7.7

2016-17 511.24 47.51 10.76

2017-18 652.35 47.51 13.73

2018-19 704.67 47.51 14.83

2019-20 624.62 47.51 13.15

(source: compiled from annual report)

INTREPRETATION:
In table 4.12 EPS is fluctuating year by year. EPS measures the profitability of
the company from the equity shareholders point of view. If EPS is higher
market value of equity share is higher in stock exchange.
 Figure 4.12 showing earnings per share ratio

16

14

12

10

0
2017-18 2018-19 2019-20 2020-21 2021-22
 DIVIDEND PER SHARE:
Dividend per share is a measure of the dividend payout per share of a
company’s common stock. The measure is used to estimate the amount of
dividends that an income investor might expect to receive if he or she were to
buy a company's common stock. The measure is especially effective when
tracked on a trend line, since a consistent amount per share indicates
management's willingness to make consistent payouts to investors. In
addition, an increasing trend of dividends paid indicates management’s belief
that the business has sufficiently robust cash flow to support dividend
payments.

Table 4.13 showing dividend per share

(Rs. In crores)

year dividend paid to number of equity dividend per

equity shareholder shares share
2017-18 208.73 47.51 4.39

2018-19 142.96 47.51 3.00

2019-20 188.69 47.51 3.97

2020-21 200.46 47.51 4.21

2021-22 200.26 47.51 4.21

(source: compiled from annual report)

INTREPRETATION:
From the above table 4.13 dividend per share is fluctuating except the year 2020-
21 to 2021-22.DPS is superior to EPS in the sense the former shows what
exactly received owners as dividends.
 Figure 4.13 showing dividend per share

4.5

3.5

2.5

1.5

0.5

0
2017-18 2018-19 2019-20 2020-21 2021-22
 CHAPTER 5
FINDINGS, SUGGESTIONS &
CONCLUSION
5.1 Findings

• Current ratio is below standard and fluctuating year by year.

• Quick ratio is also below standard hence the firm will face difficulties in
pay off its liabilities in correct time.
• Debt equity ratio is below standard except last year so the company is
not financially sound.
• Proprietary ratio is below standard so high risk to creditors.
• Leverage ratio shows this company is strong because assets are
sufficiently than liabilities.
• Net profit ratio is fluctuating year by year so is shows profitability is
fluctuating.
• Gross profit ratio is above standard so it shows greater efficiency in
production.
• Return on shareholders' fund is above ideal ratio and fluctuating year by
year.
• Total asset turnover ratio is not up to standard. The company is not
using asset efficiently.
• Fixed asset turnover is below standard for last three years and shows a
decreasing trend.
• Stock turnover ratio shows a decreasing trend.
• Earnings per share shows an increasing trend.
• Dividend per share is almost constant throughout five years.

5.2 Suggestions

• It will be better if company decreases its current liability to improve the

liquidity ratio and liquidity position.
• It will be better if company improves quick ratio otherwise the company
will struggle in paying debt.
• The company can use effective cost control methods for future growth .
 • Activity ratios are below standard is should be improved for better
efficiency of company.
• Proprietary ratio could be improved to reduce risk of creditors.
• Debt equity ratio should be improved so that the company will get more
of its finance by borrowing money.

5.3 Conclusion

The study highlights that the financial performance analysis for TVS motor
company is satisfactory. This study helped you to know financial strength and
weakness of TVS motor company. Liquidity ratio and activity ratio and shows
a negative sign. Solvency ratio, profitability ratio and market test ratio shows a
positive sign. So financial performance is satisfactory but there is further scope
for improvement.
BIBLIOGRAPHY
Books

• Accounting for management, A.Vinod (2011)

References

• Jagan Mohan Rao, P. (1993). Financial Appraisal of Indian Automotive

Tyre Industry, Finance India, Vol. VII, No.3, pp. 683–685.
• Pai, V.S, Vadivel, V, Kamala, K.H. (Dec 1995). “Diversified Companies
and Financial Performance: A Study, Finance India, Vol. IX, No.4, pp. 977–
988.
• Sudarsana Reddy, G. (2003). Financial Performance of Paper industry in
A.P, Finance India, Vol. XVII, No. 3, pp. 1027–1033.
• Sharma, Nishi, (2011), “Financial analysis of Indian Automobile
Industry,”International Journal of research in Computer application
&Management, 1(9), pp.-112-116
• Rapheal, Nisha (2013), “An overview of the financial performance of
Indian tyre industry-comparison among leading tyre companies,”Innovative
journal of Business and Management, 2(5), pp.-128-130
• Daniel, A. Moses Joshuva (2013), “A study of Financial Status of Tata
Motors Ltd.,” Indian Journal of Applied Research, 3(4), pp.-320-322
• IdhayaJothi et al (2014), “A study on financial performance of Ashok
Leyland limited at Chennai,” IOSR journal of Business and Management,
16(6), pp. -83-89
• Meften, Huda Salhe and Manish Roy Tirkey (2014), “Analysis of
FinancialStatement of Hindustan Petroleum Corporation Ltd.,” European
AcademicResearch, 2(8) pp.-10885-10897
• Maheshwari, V. (2015), “Financial performance of Hero Honda Motors
Limited, New Delhi,” Indian Journal of Applied Research, 5(5), pp.-19-21
 • Jothi, K. and Geethalakshmi A. (2016), “Liquidity and profitability position
of select Automobile companies in India,” International journal of
advanceresearch in computer science and management studies, 4(1), pp- 262-
268

Websites

• https://en.wikipedia.org
• www.tvsmotor.com
APPENDIX
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Consolidated Balance Sheet as at 31st March 2016

Rupees in crores
Note As at As at
number 31-03-2016 31-03-2015

I EQUITY AND LIABILITIES

1 Shareholders’ funds
(a) Share capital I 47.51 47.51
(b) Reserves and surplus II 1,535.37 1,277.12

2 Non-current liabilities
(a) Long-term borrowings III 508.72 560.29
(b) Deferred tax liabilities (Net) 184.81 160.22
(c) Long-term provisions IV 48.69 53.23

3 Current liabilities
(a) Short-term borrowings V 390.58 464.78
(b) Trade payables VI
i. Total outstanding dues of micro enterprises
and small enterprises 48.87 35.77
ii. Total outstanding dues of creditors other than
micro enterprises and small enterprises 1,573.53 1,488.48
(c) Other current liabilities VII 525.00 373.82
(d) Short-term provisions VIII 58.50 108.57

Total 4,921.58 4,569.79

II ASSETS
Non-current assets
1 (a) Fixed assets
(i) Tangible assets IX 1,900.50 1,605.04
(ii) Intangible assets IX 49.19 31.64
(iii) Capital work-in-progress IX 47.21 92.91

(b) Non-current investments X 648.40 539.34

(c) Long-term loans and advances XI 93.06 102.36

2 Current assets
(a) Inventories XII 1,012.26 1,017.19
(b) Trade receivables XIII 491.49 414.75
(c) Cash and bank balances XIV 53.68 27.81
(d) Short-term loans and advances XV 560.88 664.24
(e) Other current assets XVI 64.91 74.51
Total 4,921.58 4,569.79
Significant accounting policies, notes on accounts and
additional disclosures XXIII

VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed

Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W
S.G. MURALI K.S. SRINIVASAN
Chief Financial Officer Company Secretary S. VENKATRAMAN
Partner
Place : Bengaluru Membership No.: 34319
Date : 3 rd May 2016
96
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Consolidated Statement of Profit and Loss for the year ended 31st March 2016
Rupees in crores
Note Year ended Year ended
number 31-03-2016 31-03-2015
I Revenue from operations XVII 12,565.20 11,023.97
Less : Excise duty and Service tax 1,048.86 768.18
11,516.34 10,255.79
II Other income XVIII 38.54 21.34
III Total Revenue (I + II) 11,554.88 10,277.13
IV Expenses:
Cost of materials consumed XIX 7,743.98 7,200.71
Purchases of stock-in-trade XIX 266.13 226.90
Changes in inventories of finished goods,
work-in-process and stock-in-trade XIX 62.77 (117.00)
Employee benefits expense XX 743.53 665.89
Finance costs XXI 67.51 62.11
Depreciation and amortization expense 216.29 178.59
Other expenses XXII 1,942.25 1,674.04
Total expenses 11,042.46 9,891.24
V Profit before exceptional and extraordinary items and tax (III-IV) 512.42 385.89
VI Exceptional items - Profit on sale of land / building – 58.27
VII Profit before extraordinary items and tax (V+VI) 512.42 444.16
VIII Extraordinary items Income / (Loss) – –
IX Profit before tax (VII+VIII) 512.42 444.16
X Tax expense:
(a) Current tax 129.64 114.42
(b) MAT credit entitlement (12.46) (23.66)
(c) Tax relating to earlier years 6.20 6.27
(d) Deferred tax 24.59 26.91
XI Profit / (Loss) for the period (IX-X) 364.45 320.22
XII Share of Profit of Associates (net) 4.88 8.04
XIII Minority Interest – –
XIV Profit / (Loss) for the period (XI+XII+XIII) 369.33 328.26
XV Earnings Per equity Share (EPS) (Refer note no.XXIII (6))
(Face value Re.1/- each)
(a) Basic and Diluted EPS before extraordinary items (in Rs.) 7.77 6.91
(b) Basic and Diluted EPS after extraordinary items (in Rs.) 7.77 6.91
Significant accounting policies, notes on accounts and
additional disclosures XXIII

VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed

Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W
S.G. MURALI K.S. SRINIVASAN
Chief Financial Officer Company Secretary S. VENKATRAMAN
Partner
Place : Bengaluru Membership No.: 34319
Date : 3 rd May 2016
97
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Consolidated Balance Sheet as at 31st March 2017

Rupees in crores
As at As at As at
Notes
31-03-2017 31-03-2016 01-04-2015
ASSETS
Non-current assets
Property, plant and equipment 2 2,273.77 1,988.67 1,678.30
Capital work in progress 2 63.81 47.21 92.91
Investment Properties 32.56 28.12 24.83
Goodwill 2.20 2.20 –
Other intangible assets 2 53.53 47.27 31.64
Financial assets
i. Investments 3 1,060.00 861.06 704.86
ii. Others (Bank deposits) 0.22 0.21 0.12
Investments accounted using equity method 4 95.19 53.33 48.49
Non-Current tax assets (Net) 26.51 14.78 35.06
Other non-current assets 5 85.90 51.19 52.01
3,693.69 3,094.04 2,668.22
Current assets
Inventories 6 1,161.86 882.60 931.29
Financial assets
i. Trade receivables 7 701.81 490.84 414.47
ii. Cash and cash equivalents 8 47.12 49.17 25.26
iii. Bank balances other than (ii) above 9 4.14 4.40 2.46
iv. Others 10 16.88 34.25 27.26
Current tax assets (Net) 3.06 29.04 69.06
Other current assets 11 499.40 561.71 642.22
2,434.27 2,052.01 2,112.02
Total Assets 6,127.96 5,146.05 4,780.24
EQUITY AND LIABILITIES
Equity
Equity share capital 12 47.51 47.51 47.51
Other equity 13 2,168.53 1,770.97 1,559.71
Equity attributable to owners 2,216.04 1,818.48 1,607.22
Non controlling interest 8.78 (0.51) –
2,224.82 1,817.97 1,607.22
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 14 501.23 508.72 561.10
Provisions 15 64.59 48.69 53.23
Deferred tax liabilities (Net) 16 128.70 146.11 131.47
694.52 703.52 745.80
Current liabilities
Financial liabilities
i. Borrowings 17 740.85 390.58 464.78
ii. Trade payables 18 1,953.69 1,626.52 1,525.21
iii. Other payables (Payable towards investment property) 32.56 28.12 24.83
iii. Other financial liabilities 19 130.32 241.95 143.79
Provisions 15 62.91 58.50 39.54
Other current liabilities 20 288.29 278.89 229.07
3,208.62 2,624.56 2,427.22
Total liabilities 3,903.14 3,328.08 3,173.02
Total equity and liabilities 6,127.96 5,146.05 4,780.24
Significant accounting policies 1
VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed
Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W
S.G. MURALI K.S. SRINIVASAN
Chief Financial Officer Company Secretary S. VENKATRAMAN
Place : Bengaluru Partner
Date : 27th April 2017 Membership No.: 34319
124
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Consolidated Statement of Profit and Loss for the year ended 31st March 2017
Rupees in crores
Year ended Year ended
Notes
31-03-2017 31-03-2016
I Revenue from operations 21 13,573.89 12,423.93
II Other income 22 165.44 91.35
III Total income (I + II) 13,739.33 12,515.28
IV Expenses:
Cost of material consumed 23 8,692.53 7,697.67
Purchase of stock in trade 23 292.70 266.13
Changes in inventories of finished goods,
Stock-in-trade and work-in-progress 23 (48.77) 62.77
Excise duty 1,111.27 1,046.87
Employee benefits expense 24 828.05 731.19
Finance costs 25 59.62 70.02
Depreciation and amortisation expense 2 316.82 262.19
Other expenses 26 1,829.35 1,803.19
Total expenses 13,081.57 11,940.03
V Profit before exceptional items, share of
net profit of investment and tax (III - IV) 657.76 575.25
VI Share of net profit from associates using equity method 0.20 4.84
VII Profit before exceptional items and tax (V + VI) 657.96 580.09
VIII Exceptional items – –
IX Profit before tax (VII + VIII) 657.96 580.09
X Tax expense 27
i) Current tax 167.10 134.58
ii) Deferred tax (18.43) 16.87
XI Profit for the year (IX - X) 509.29 428.64
XII (Profit) / Loss attributable to Non Controlling Interest 1.95 0.51
XIII Profit for the year attributable to owners (XI + XII) 511.24 429.15
XIV Other comprehensive income
A. Items that will not be reclassified to profit or loss:
Remeasurements of post employment benefit obligations (9.12) (12.35)
Change in fair value of equity instruments 44.55 1.43
Income tax relating to these items (0.41) 2.41
B. Items that will be reclassified to profit or loss:
Fair value changes on cash flow hedges (3.77) 0.52
Foreign currency translation adjustments (23.96) 18.54
Income tax relating to these items 1.30 (0.18)
Other comprehensive income for the year, net of tax (XIV) 8.59 10.37
XV Other Comprehensive income attributable to non-controlling interest (0.34) –
XVI Other Comprehensive income attributable to owners (XIV - XV) 8.93 10.37
XVII Total comprehensive income attributable to owners (XIII + XVI) 520.17 439.52
XVIII Earnings per equity share (Face value of Re.1/- each)
Basic & Diluted earnings per share (in rupees) 35 10.76 9.03

VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed

Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W
S.G. MURALI K.S. SRINIVASAN
Chief Financial Officer Company Secretary S. VENKATRAMAN
Partner
Place : Bengaluru Membership No.: 34319
Date : 27th April 2017
125
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Consolidated Balance Sheet as at 31st March 2018

Rupees in crores
As at As at
Notes 31-03-2018 31-03-2017
ASSETS
Non-current assets
Property, plant and equipment 2 2,708.59 2,273.77
Capital work-in-progress 2 273.87 63.81
Investment properties 3 138.40 32.56
Goodwill 2.20 2.20
Goodwill on consolidation 186.11 -
Other intangible assets 2 58.55 53.53
Intangible assets under development 39.39 -
Financial assets
i. Investments 4 294.04 1,060.00
ii. Loans (receivable from financing activity) 5 2,826.25 -
iii. Others 6 17.08 0.22
Investments accounted using equity method 7 126.98 95.19
Non-current tax assets (Net) 31.68 26.51
Other non-current assets 8 137.50 85.90
6,840.64 3,693.69
Current assets
Inventories 9 1,056.15 1,161.86
Financial assets
i. Trade receivables 10 1,070.88 701.81
ii. Loans (receivable from financing activity) 5 3,305.45 -
iii. Cash and cash equivalents 11 102.10 47.12
iv. Bank balances other than (iii) above 12 70.83 4.14
v. Others 13 83.63 16.88
Current tax assets (Net) 61.08 3.06
Other current assets 14 622.77 499.40
6,372.89 2,434.27
Total assets 13,213.53 6,127.96
EQUITY AND LIABILITIES
Equity
Equity share capital 15 47.51 47.51
Other equity 16 2,629.69 2,168.53
Equity attributable to owners 2,677.20 2,216.04
Non-controlling interest 181.08 8.78
2,858.28 2,224.82
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 17 2,360.93 501.23
Provisions 18 86.53 64.59
Deferred tax liabilities (Net) 19 54.71 128.70
2,502.17 694.52
Current liabilities
Financial liabilities
i. Borrowings 20 3,192.46 740.85
ii. Trade payables 21 2,682.87 1,953.69
iii. Other payables (payable towards investment property) - 32.56
iv. Other financial liabilities 22 1,527.23 130.32
Provisions 18 65.20 62.91
Other current liabilities 23 385.32 288.29
7,853.08 3,208.62
Total liabilities 10,355.25 3,903.14
Total equity and liabilities 13,213.53 6,127.96
Significant accounting policies 1

VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed

Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W

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

Date : 16th May 2018 Chief Financial Officer Company Secretary Partner (M. No.: 34319)
130
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Consolidated statement of profit and loss for the year ended 31st March 2018
Rupees in crores
Year Ended Year Ended
Notes 31-03-2018 31-03-2017
I Revenue from operations 24 16,656.00 13,573.89
II Other income 25 145.36 165.44
III Total income (I + II) 16,801.36 13,739.33
IV Expenses :
Cost of material consumed 26 11,003.04 8,692.53
Purchase of stock in trade 26 254.56 292.70
Changes in inventories of finished goods,
Stock-in -trade and work-in-progress 26 33.96 (48.77)
Excise duty 361.50 1,111.27
Employee benefits expense 27 1,149.79 828.05
Finance costs 28 338.22 59.62
Depreciation and amortisation expense 2 373.60 316.82
Other expenses 29 2,356.45 1,829.35
Total expenses 15,871.12 13,081.57
V Profit before exceptional items,
share of net profit of investment and tax (III - IV) 930.24 657.76
VI Share of net profit / (loss) from associates using equity method 0.57 0.20
VII Profit before exceptional items and tax (V + VI) 930.81 657.96
VIII Exceptional items - -
IX Profit before tax (VII + VIII) 930.81 657.96
X Tax expense 30
i) Current tax 248.40 167.10
ii) Deferred tax 17.63 (18.43)
XI Profit for the year (IX - X) 664.78 509.29
XII (Profit) / Loss attributable to non-controlling interest (12.43) 1.95
XIII Profit for the year attributable to owners (XI + XII) 652.35 511.24
XIV Other comprehensive income
A. Items that will not be reclassified to profit or loss:
Remeasurements of post employment benefit obligations (6.36) (9.12)
Change in fair value of equity instruments (2.04) 44.55
Income tax relating to these items 3.79 (0.41)
B. Items that will be reclassified to profit or loss:
Fair value changes on cash flow hedges (2.82) (3.77)
Change in fair value of debt instruments (0.85) -
Foreign currency translation adjustments 4.95 (23.96)
Income tax relating to these items 1.27 1.30
Other comprehensive income for the year, net of tax (XIV) (2.06) 8.59
XV Other comprehensive income attributable to non-controlling interest (0.08) (0.34)
XVI Other comprehensive income attributable to owners (XIV - XV) (1.98) 8.93
XVII Total comprehensive income attributable to owners (XIII +XVI) 650.37 520.17
XVIII Earnings per equity share (Face value of Re.1/- each)
Basic & Diluted earnings per share (in rupees) 38 13.73 10.76

VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed

Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W

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

Date : 16th May 2018 Chief Financial Officer Company Secretary Partner (M. No.: 34319)
131
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Balance Sheet as at 31st March 2019

Rupees in crores
As at As at
Notes
31-03-2019 31-03-2018
ASSETS
Non-current assets
Property, plant and equipment 2 2,978.81 2,708.59
Capital work-in-progress 2 603.92 273.87
Investment properties 3 137.70 138.40
Goodwill 2.20 2.20
Goodwill on consolidation 186.11 186.11
Other intangible assets 2 61.98 58.55
Intangible assets under development 140.59 39.39
Financial assets
i. Investments 4 309.80 294.04
ii. Loans (receivable from financing activity) 5 3,624.80 2,826.25
iii. Other financial assets 6 16.52 17.08
Investments accounted using equity method 7 129.93 126.98
Non-current tax assets (Net) 28.06 31.68
Other non-current assets 8 144.40 162.42
8,364.82 6,865.56
Current assets
Inventories 9 1,291.57 1,056.15
Financial assets
i. Trade receivables 10 1,546.07 1,070.88
ii. Loans (receivable from financing activity) 5 4,599.83 3,305.45
iii. Cash and cash equivalents 11 163.04 102.10
iv. Bank balances other than (iii) above 12 43.27 70.83
v. Other financial assets 13 101.50 83.63
Current tax assets (Net) 21.53 61.08
Other current assets 14 564.86 574.62
8,331.67 6,324.74
Total assets 16,696.49 13,190.30
EQUITY AND LIABILITIES
Equity
Equity share capital 15 47.51 47.51
Other equity 16 3,122.66 2,629.69
Equity attributable to owners 3,170.17 2,677.20
Non-controlling interest 245.77 181.08
3,415.94 2,858.28
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 17 4,909.16 2,360.93
Provisions 18 89.64 86.53
Deferred tax liabilities (Net) 19 96.96 54.71
5,095.76 2,502.17
Current liabilities
Financial liabilities
i. Borrowings 20 3,253.81 3,192.46
ii. Trade payables 21
a. Total outstanding dues of micro and small enterprises 79.24 74.96
b. Total outstanding dues of other than (ii) (a) above 3,080.44 2,575.88
iii. Other financial liabilities 22 1,316.32 1,527.23
Provisions 18 65.06 65.20
Other current liabilities 23 389.92 394.12
8,184.79 7,829.85
Total liabilities 13,280.55 10,332.02
Total equity and liabilities 16,696.49 13,190.30
Significant accounting policies 1
See accompanying notes to the financial statements
VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed
Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W
K.N.RADHAKRISHNAN K. GOPALA DESIKAN K.S. SRINIVASAN
Director & Chief Executive Officer Chief Financial Officer Company Secretary S. VENKATRAMAN
Partner
Place : Chennai Membership No.: 34319
Date : 30th April 2019
144
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Statement of Profit and Loss for the year ended 31st March 2019
Rupees in crores
Year ended Year ended
Notes
31-03-2019 31-03-2018
I Revenue from operations 24 20,159.99 16,701.75
II Other income 25 25.44 99.61
III Total Income (I +II) 20,185.43 16,801.36
IV Expenses:
Cost of material consumed 26 13,788.43 11,003.04
Purchase of stock-in-trade 26 244.84 254.56
Changes in inventories of finished goods,
stock-in-trade and work-in-progress 26 (78.95) 33.96
Excise duty – 361.50
Employee benefits expense 27 1,432.15 1,149.79
Finance costs 28 663.40 338.22
Depreciation and amortisation expense 2 441.71 373.60
Other expenses 29 2,612.70 2,356.45
Total expenses 19,104.28 15,871.12
V Profit before exceptional items, share of
net profit of investment and tax (III - IV) 1,081.15 930.24
VI Share of net profit from associates using equity method 1.70 0.57
VII Profit before exceptional items and tax (V + VI) 1,082.85 930.81
VIII Exceptional items – –
IX Profit before tax (VII + VIII) 1,082.85 930.81
X Tax expense 30
i) Current tax 363.18 248.40
ii) Deferred tax (5.73) 17.63
XI Profit for the year (IX - X) 725.40 664.78
XII (Profit) / Loss attributable to non-controlling Interest (20.73) (12.43)
XIII Profit for the year attributable to owners (XI + XII) 704.67 652.35
XIV Other comprehensive income
A. Items that will not be reclassified to profit or loss:
Remeasurements of post employment benefit obligations 8.31 (6.36)
Change in fair value of equity instruments (10.04) (2.04)
Share of other comprehensive income of an associate (0.13) –
Income tax relating to these items (1.65) 3.79
B. Items that will be reclassified to profit or loss:
Fair value changes on cash flow hedges (2.11) (3.67)
Foreign currency translation adjustments 11.14 4.95
Income tax relating to these items 0.74 1.27
Other comprehensive income for the year, net of tax (XIV) 6.26 (2.06)
XV Other comprehensive income attributable to non-controlling interest (0.15) (0.08)
XVI Other comprehensive income attributable to owners (XIV - XV) 6.41 (1.98)
XVII Total comprehensive income attributable to owners (XIII +XVI) 711.08 650.37
XVIII Earnings per equity share (Face value of Re.1/- each)
Basic & Diluted earnings per share (in rupees) 39 14.83 13.73
See accompanying notes to the financial statements
VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed
Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W
K.N.RADHAKRISHNAN K. GOPALA DESIKAN K.S. SRINIVASAN
Director & Chief Executive Officer Chief Financial Officer Company Secretary S. VENKATRAMAN
Partner
Place : Chennai Membership No.: 34319
Date : 30th April 2019
145
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Balance Sheet as at 31st March 2020

Rupees in crores
As at As at
Notes
ASSETS 31-03-2020 31-03-2019
Non-current assets
Property, plant and equipment 2 3,066.54 2,978.81
Capital work-in-progress 2 847.14 603.92
Investment properties 3 137.70 137.70
Goodwill 2.20 2.20
Goodwill on consolidation 186.11 186.11
Other intangible assets 2 183.00 61.98
Intangible assets under development 158.87 140.59
Right of use asset 4 235.14 –
Financial assets
i. Investments 5 210.70 309.80
ii. Loans (receivable from financing activity) 6 4,148.49 3,624.80
iii. Other Financial Assets 7 36.64 16.52
Investments accounted using equity method 8 160.21 129.93
Non-current tax assets (Net) 28.34 28.06
Other non-current assets 9 132.09 144.40
9,533.17 8,364.82
Current assets
Inventories 10 1,188.47 1,291.57
Financial assets
i. Trade receivables 11 1,454.36 1,546.07
ii. Loans (receivable from financing activity) 6 5,306.84 4,599.83
iii. Cash and cash equivalents 12 1,079.69 163.04
iv. Bank balances other than (iii) above 13 27.88 43.27
v. Other financial assets 14 93.19 101.50
Current tax assets (Net) 2.43 21.53
Other current assets 15 593.98 564.86
9,746.84 8,331.67
Total assets 19,280.01 16,696.49
EQUITY AND LIABILITIES
Equity
Equity share capital 16 47.51 47.51
Other equity 17 3,234.59 3,122.66
Equity attributable to owners 3,282.10 3,170.17
Non-controlling interest 320.94 245.77
3,603.04 3,415.94
Liabilities
Non-current liabilities
Financial liabilities
i. Borrowings 18 5,221.23 4,909.16
ii. Lease Liabilities 194.28 –
iii. Others 9.84 –
Provisions 19 122.22 89.64
Deferred tax liabilities (Net) 20 87.12 96.96
5,634.69 5,095.76
Current liabilities
Financial liabilities
i. Borrowings 21 3,780.70 3,253.81
ii. Lease Liabilities 47.62 –
iii. Trade payables 22
a. Total outstanding dues of micro and small enterprises 121.49 79.24
b. Total outstanding dues of other than (iii) (a) above 3,065.35 3,080.44
iv. Other financial liabilities 23 2,538.37 1,316.32
Provisions 19 99.77 65.06
Other current liabilities 24 388.98 389.92
10,042.28 8,184.79
Total liabilities 15,676.97 13,280.55
Total equity and liabilities 19,280.01 16,696.49
Significant accounting policies 1
See accompanying notes to the financial statements
VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed
Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W
K.N.RADHAKRISHNAN K. GOPALA DESIKAN K.S. SRINIVASAN
Director & Chief Executive Officer Chief Financial Officer Company Secretary S. VENKATARAMAN
Partner
Place : Chennai Membership No.: 023116
Date : 28th May 2020
170
CONSOLIDATED FINANCIAL STATEMENTS OF TVS MOTOR COMPANY LIMITED

Statement of Profit and Loss for the year ended 31st March 2020
Rupees in crores
Year ended Year ended
Notes
31-03-2020 31-03-2019
I Revenue from operations 25 18,849.31 20,159.99
II Other income 26 51.83 25.44
III Total Income (I +II) 18,901.14 20,185.43
IV Expenses:
Cost of material consumed 27 12,050.84 13,788.43
Purchase of stock in trade 27 259.20 244.84
Changes in inventories of finished goods,
Stock-in -trade and work-in-progress 27 6.73 (78.95)
Employee benefits expense 28 1,539.35 1,432.15
Finance costs 29 854.54 663.40
Depreciation and amortisation expense 30 556.00 441.71
Other expenses 31 2,720.14 2,612.70
Total expenses 17,986.80 19,104.28
V Profit before exceptional items, share of net
profit of investment and tax (III - IV) 914.34 1,081.15
VI Share of net profit / (loss) from associates using equity method (8.59) 1.70
VII Profit before exceptional items and tax (V + VI) 905.75 1,082.85
VIII Exceptional items (40.33) –
IX Profit before tax (VII + VIII) 865.42 1,082.85
X Tax expense 32
i) Current tax 294.65 363.18
ii) Deferred tax (76.03) (5.73)
XI Profit for the year (IX - X) 646.80 725.40
XII (Profit) / Loss attributable to non-controlling Interest (22.18) (20.73)
XIII Profit for the year attributable to owners (XI + XII) 624.62 704.67
XIV Other comprehensive income
A. Items that will not be reclassified to profit or loss:
Remeasurements of post employment benefit obligations (50.30) 8.31
Change in fair value of equity instruments (38.75) (10.04)
Share of other comprehensive income of an associate (0.10) (0.13)
Income tax relating to these items 15.49 (1.65)
B. Items that will be reclassified to profit or loss:
Fair value changes on cash flow hedges (90.69) (2.11)
Foreign currency translation adjustments 31.27 11.14
Income tax relating to these items 22.99 0.74
Other comprehensive income for the year, net of tax (XIV) (110.09) 6.26
XV Other comprehensive income attributable to non-controlling interest (2.73) (0.15)
XVI Other comprehensive income attributable to owners (XIV - XV) (107.36) 6.41
XVII Total comprehensive income attributable to owners (XIII +XVI) 517.26 711.08
XVIII Earnings per equity share (Face value of Re.1/- each)
Basic & Diluted earnings per share (in rupees) 42 13.15 14.83
See accompanying notes to the financial statements

VENU SRINIVASAN SUDARSHAN VENU H. LAKSHMANAN As per our report annexed

Chairman & Managing Director Joint Managing Director Director For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Regn. No.: 109208W
K.N.RADHAKRISHNAN K. GOPALA DESIKAN K.S. SRINIVASAN
Director & Chief Executive Officer Chief Financial Officer Company Secretary S. VENKATARAMAN
Partner
Place : Chennai Membership No.: 023116
Date : 28th May 2020
171