Notes to Accounts of Wheels India Ltd.

Mar 31, 2024

3B. GOODWILL

Goodwill represents the cost of acquired business as established at the date of acquisition of the business in excess of the acquirer''s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities less accumulated impairment losses, if any. Goodwill is tested for impairment annually or when events or circumstances indicate that the implied fair value of goodwill is less than its carrying amount.

CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there is indication for impairment. The financial projections basis which the future cash flows have been estimated consider economic uncertainties, reassessment of the discount rates, revisiting the growth rates factored while arriving at terminal value and subjecting these variables to sensitivity analysis. If the recoverable amount of a CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

The estimated value-in-use of this CGU is based on the future cash flows using a 2.00% annual growth rate for periods subsequent to the forecast period of 3 years and a discount rate of 8.5%. An analysis of the sensitivity of the computation to a change in key parameters (operating margin, discount rates and long term average growth rate), based on reasonable assumptions, did not identify any probable scenario in which the recoverable amount of the CGU would decrease below its carrying amount.

Impairment of goodwill

The Company estimates the value-in-use of the cash generating units (CGUs) based on the future cash flows after considering current economic conditions and trends, estimated future operating results and growth rate and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The discount rates used for the CGUs represent the weighted average cost of capital.

i) Provision for Warranty claims:

Provision for warranty related costs is an estimate made by the management based on possible future outflow on servicing the customer for any corrective action when the product is sold to the customer. Initial Recognition is based on historical experience. The estimate of warranty related costs is reviewed annually.

			Rs. in Crores
26 CONTINGENT LIABILITIES AND COMMITMENTS i) Contingent Liabilities	As at 31.03.2024		As at 31.03.2023
a) Bills discounted with Banks		-	-
b) Disputed amounts in respect of GST, Income Tax and Value Added Tax which are contested in appeal and not provided for		9.45	5.68
ii) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for		75.99	25.34

27 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS

The term loans and other loans are repayable over a period of 1 to 5 years as per the terms of agreement entered into with the Banks / others.

28 Sale of Services

The Company''s sale of services include certain composite services, wherein the purchase and its corresponding sale of materials/components amounting to Rs. 562.57 crores are netted off and reflected in the Statement of Profit and Loss. (previous year Rs 269.01 crores) .

37 Dividend of Rs. 7.39 per equity share amounting to Rs.18.06 Crores for the Financial year 2023-24 recommended by Board of Directors which is subject to the approval of shareholders at the ensuing Annual General meeting is not recognised as liability as at the date of Balance sheet.

40 EMPLOYEE BENEFITS Defined Contribution Plana) Provident Fund

In respect of the Employees Provident Fund Scheme, the Company has contributed Rs.7.20 crores for the year ended 31st March 2024 (previous year Rs. 6.97 crores) to Provident fund Authorities.

b) Superannuation :

The Company has contributed Rs. 0.88 crores for the period 2023-24 (previous year Rs. 0.71 Crores) to the Superannuation trust and the same is recognised in Statement of Profit and Loss under the head Employee benefit expenses.

Defined Benefit Plan

c) c) In respect of Employees Provident Fund managed through Trust, the Company has contributed Rs. 5.25 crores for the year ended 31st March,2024 (previous year Rs. 4.25 crores) to the Provident Fund Trust. The interest payable by trust to the beneficiaries of trust as per the rate notified by the Government is met by the trust with contribution from company for the previous year ended 31st March 2024 of Rs. 2.96 Crores. (previous year - Rs. 2.52 Crores).

d) Gratuity and Leave Salary

In case of the above Defined Benefit Plans, the liability is determined on the basis of Actuarial Valuation and provided for in the Statement of Profit and Loss/ Other Comprehensive Income which are disclosed as below:

B. Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 hierarchy - Includes Financial Instruments measured using quoted prices in the active market.

Level 2 hierarchy - The Fair value of Financial Instruments that are not traded in an active market, is determined using valuation techniques which maximise the use of observable market data.

Level 3 hierarchy - Includes Financial Instruments for which one or more of the significant inputs are not based on observable market data. This is applicable for unlisted securities.

i) The Fair value of an Equity Instruments classified as at Fair value through profit or loss included under Level 3 Investments is determined using Cost approach.

ii) The Fair value of an Equity Instrument classified as at Fair value through Other Comprehensive Income included under Level 3 Investments was valued by Registered valuer taking a combination of comparable companies multiple method and Discounted cash flow method in the previous year.

iii) There are no transfers between Level 2 and Level 3 during the year.

iv) Trade Receivables, Trade Payables, Cash and Cash Equivalents and Other Financial Assets and Liabilities are stated at amortized cost which approximates their fair value.

C. Financial risk management

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Risk management policies have been established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review and reflect the changes in the policy accordingly.

a) Management of liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities . In doing this, management considers both normal and stressed conditions.

The Company regularly monitors the rolling forecasts and the actual cash flows to service the financial liabilities on a day-to-day basis through cash generation from business and by having adequate banking facilities.

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.

b) Management of Market risk:

The Company is exposed to the following market risks which affects the value of the Financial instruments:

1. Currency risk

2. Interest rate risk

i) Foreign currency risk

Foreign currency risk is the risk that the fair value of or future cash flows of an exposure will fluctuate because of the changes in foreign exchange rates. As at 31st March, 2024, the net un-hedged exposure to the Company on holding such financial assets and liabilities amounts to Rs. 101.36 Crores.

The Company manages currency exposures by continuously monitoring the Foreign currency rates with the transaction rate and takes steps to mitigate the risk using Forward/ Derivative contracts.

Sensitivity to risk

A 5% strengthening of the INR against foreign currencies to which the Company is exposed (net of hedge) would have led to approximately an additional Gain of Rs. 4.83 Crores in the Statement of Profit and Loss. A 5% weakening of the INR against these currencies would have led to an equal impact but with opposite effect.

As at 31st March 2024, the Company has 90 open foreign exchange forward contracts as below (31st March, 2023 - 48 contracts)

ii) Interest rate Risk

Interest rate is the risk that the Fair value of future cash flows of a financial instruments will fluctuate because of changes in market interest rates. The Company has Rs. 39.29 Crores Borrowings at Floating rate of Interest as at 31st March, 2024 (previous year Rs. 100.88 Crores).

Sensitivity to risk

An increase in interest rate of 1% will likely to affect the profit negatively by Rs. 0.39 crores and a decrease of 1% would have led to an equal impact but with opposite effect.

c) Management of credit risk

Credit risk is the risk of financial loss to the Company if the other party to the financial assets fails to meet its contractual obligations.

i) Trade Receivables:

Concentration of credit risk with respect to trade receivables are limited as the customers are predominantly original equipment manufacturers (OEs). All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Refer Note (f) for accounting policy on Financial Instruments.

ii) Other Financial Assets:

The Company has exposure in Cash and cash equivalents and term deposits with banks. The Company''s maximum exposure to credit risk as at 31st March, 2024 is the carrying value of each class of financial assets as on that date.

49 Amalgamtion of Sundaram Hydraulics Limited (SHL)

The Hon''ble National Company Law Tribunal, Chennai Bench (NCLT) vide its order dated 26th July 2023 read with corrigendum dated 1st August 2023, received on 14th August 2023 has approved the scheme of amalgamation of M/s Sundaram Hydraulics Limited (SHL), a company engaged in the business of design, manufacture and distribution of hydraulic cylinders for the domestic and global Mining & Construction Equipment industry, with M/s. Wheels India Ltd and their respective shareholders under Section 230 to 232 and other applicable provisions of Companies Act 2013 read with Companies (Compromoise, Arrangement and Amalgamation) rules, 2016. The said scheme was made effective 1st September 2023.

Rationale for Amalgamation

1. The amalgamation will enable product diversification and growth to the Transferee company

2. This will facilitate expansion of the business of Transferor company by using the customer base of the Transferee company.

3. As a combined entity, the amalgamation will help in widening the product offering to the existing strategic customers of both the transferor as well as the transteree company.

4. Will help in achieving consolidation, greater integration and flexibility that will maximize overall shareholder''s value and improve the competitive position and negotiating power of the combined entity.

5. Improves organizational capability and leadership, arising from the pooling of human capital who have the diverse skills, talent and vast experience to compete successfully in an increasingly competitive industry

6. Cost savings are expected to flow from more focused operational efforts, rationalization, standardization and simplification of business processes, elimination of duplication and rationalization of administrative expenses.

7. The amalgamation will result in reduction of multiplicity of entities, thereby reducing compliance cost of multiple entities viz., statutory flings, regulatory compliances, labour law/ establishment related compliances.

Accordingly, effective the appointed date 1st October, 2021, the amounts have been restated, after recognizing

the effect of amalgamation.

Pursuant to Ind AS 103 and as per the accounting treatment approved by NCLT, the Company has recognised

the difference between the consideration paid and aggregate fair value of net assets taken over, as on the

appointed date as goodwill.

As per the said Scheme, 3,68,454 equity shares having a face value of Rs.10 each, fully paid-up, were issued and allotted to the eligible erstwhile shareholders of SHL on September 14, 2023. Accordingly, Earnings per share presented in the above results are restated considering the additional shares issued from the appointed date.

Goodwill on the above transaction reflects growth opportunities and synergy benefits which are not separately identifiable. The goodwill and other intangible assets recognised, arising on consolidation, are not depreciable for income tax purposes.

Acquired Receivables

Fair Value of trade and other receivables acquired is Rs 12.53 crores. These amounts are fully collectible. Impact of above acquisition on the results

The acquired business contributed Revenue of Rs 158.93 Crores and Profit Before tax of Rs 4.10 Crores during Financial year 2023-24. During previous year 2022-23, the corresponding figures were Rs 127.11 Crores and (Rs 3.02 Crores) respectively.

51 Other Regulatory Disclosures as required under Schedule III Of Companies Act, 2013:

a) The Company does not have any Benami property held in its name. No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

b) During the year, the Company has borrowings from banks on the basis of security of current assets. Returns/Statements filed with the banks on a periodical basis are in agreement with the books of accounts.

c) As per the information available with the company, the company has not transacted with any companies struck off under section 248 of the Companies Act, 2013 or under Section 560 of the Companies Act, 1956

d) There has been no charges or satisfaction yet to be registered with the Registrar of Companies (ROC) beyond the statutory period

e) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

f) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity (ies), including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

g) The Company has not received any fund from any person(s) or entity (ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

h) The Company has not traded or invested in Crypto currency or virtual currency during the financial year ended March 31,2023

i) The Company has not given any loans or advances in the nature of loans to Promoters, Directors, Key Managerial Personnel and related parties, that are repayable on demand or without specifying any terms or period of repayment.

52 Other notes:

a) The Board of Directors at their meeting held on November 01, 2023 had approved the proposal to incorporate Wholly-Owned-Subsidiaries (“WoS") in the United States of America and Germany. The primary purpose of WoS is to support the parent Company in business development and supply chain activities in US & European region. It will also help in gaining full control on the export market, leading to export growth and expansion in the operations. It will enable to maintain high level of consistency and coordination in its global strategy.

Accordingly, the Company has incorporated a WoS in the name of M/s. WIL USA Inc., in the State of Delaware, USA on January 26, 2024. The Company has not subscribed towards share capital of WoS and hence, the books of M/s. WIL USA Inc., have not been consolidated for the purpose of consolidated financial statements of WIL. The Company is in the process of incorporating a WoS in Germany.

b) Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2023

Rights, Preferences and restrictions

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each member is entitled to one vote by e voting (remote e - voting/ e - voting at the meeting), every shareholder is entitled to vote in proportion to their holdings.

Provision for Warranty claims:

Provision for warranty related costs is an estimate made by the management based on possible future outflow on servicing the customer for any corrective action when the product is sold to the customer. Initial Recognition is based on historical experience. The estimate of warranty related costs is reviewed annually.

26 CONTINGENT LIABILITIES AND COMMITMENTS i) Contingent Liabilities
a) Bills discounted with Banks b) Disputed amounts in respect of GST, Income Tax and	-	2.21
Value Added Tax which are contested in appeal and not provided for ii) Commitments	5.53	5.71
Estimated amount of contracts remaining to be executed on capital account and not provided for	24.67	39.64

27 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS

The term loans and other loans are repayable over a period of 1 to 5 years as per the terms of agreement entered into with the Banks / others.

28 Sale of Services

The Company''s sale of services include certain composite services, wherein the purchase and its corresponding sale of materials/components amounting to Rs. 269.01 crores are netted off and reflected in the Statement of Profit and Loss. (previous year ''Nil'').

a) Provident Fund

In respect of the Employees Provident Fund Scheme, the Company has contributed Rs. 6.97 crores for the year ended 31st March 2023 (previous year Rs. 6.55 crores) to Provident fund Authorities.

b) Superannuation :

The Company has contributed Rs. 0.71 crores for the period 2022-23 (previous year Rs. 0.66 Crores) to the Superannuation trust and the same is recognised in Statement of Profit and Loss under the head employee benefit expenses.

Defined Benefit Plan

c) In respect of employees Provident Fund managed through Trust, the Company has contributed Rs. 4.25 crores for the year ended 31st March,2023 (previous year Rs. 3.73 crores) to the Provident Fund Trust. The interest payable by trust to the beneficiaries of trust as per the rate notified by the Government is met by the trust with contribution from company for the previous year ended 31st March 2023 of Rs. 2.52 crores. (previous year - Rs. 2.19 Crores).

Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 hierarchy - Includes Financial Instruments measured using quoted prices in the active market.

Level 2 hierarchy - The Fair value of Financial Instruments that are not traded in an active market, is determined using valuation techniques which maximise the use of observable market data.

i) The Fair value of an Equity Instruments classified as at Fair value through profit or loss included under Level 3 Investments is determined using Cost approach.

ii) The Fair value of an equity Instrument classified as at Fair value through Other Comprehensive Income included under Level 3 Investments was valued by Registered valuer taking a combination of comparable companies multiple method and Discounted cash flow method in the previous year.

iii) There are no transfers between Level 2 and Level 3 during the year.

iv) Trade Receivables, Trade Payables, Cash and Cash equivalents and Other Financial Assets and Liabilities are stated at amortized cost which approximates their fair value.

C. Financial risk management

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Risk management policies have been established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review and reflect the changes in the policy accordingly.

a) Management of liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities . In doing this, management considers both normal and stressed conditions.

The Company regularly monitors the rolling forecasts and the actual cash flows to service the financial liabilities on a day-to-day basis through cash generation from business and by having adequate banking facilities.

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.

b) Management of Market risk:

The Company is exposed to the following market risks which affects the value of the Financial instruments:

1. Currency risk;

2. Interest rate risk

i) Foreign currency risk

Foreign currency risk is the risk that the fair value of or future cash flows of an exposure will fluctuate because of the changes in foreign exchange rates. As at 31st March, 2023, the net un-hedged exposure to the Company on holding such financial assets and liabilities amounts to Rs. 180.76 Crores.

The Company manages currency exposures by continuously monitoring the Foreign currency rates with the transaction rate and takes steps to mitigate the risk using Forward/ Derivative contracts.

Sensitivity to risk

A 5% strengthening of the INR against foreign currencies to which the Company is exposed (net of hedge) would have led to approximately an additional Gain of Rs. 9.04 Crores in the Statement of Profit and Loss. A 5% weakening of the INR against these currencies would have led to an equal impact but with opposite effect.

ii) Interest rate Risk

Interest rate is the risk that the Fair value of future cash flows of a financial instruments will fluctuate because of changes in market interest rates. The Company has Rs. 100.88 Crores Borrowings at Floating rate of Interest as at 31st March, 2023 (previous year Rs. 181.40 Crores).

Sensitivity to risk

An increase in interest rate of 1% will likely to affect the profit negatively by Rs. 1.01 crores and a decrease of 1% would have led to an equal impact but with opposite effect.

c) Management of credit risk

Credit risk is the risk of financial loss to the Company if the other party to the financial assets fails to meet its contractual obligations.

i) Trade Receivables:

Concentration of credit risk with respect to trade receivables are limited as the customers are predominantly original equipment manufacturers (OEs). All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Refer Note (f) for accounting policy on Financial Instruments.

ii) Other Financial Assets:

The Company has exposure in Cash and cash equivalents and term deposits with banks. The Company''s maximum exposure to credit risk as at 31st March, 2023 is the carrying value of each class of financial assets as on that date.

Return on Equity and Net profit ratio : The net profit for the year has declined due to additional inspection and rectification work at an overseas customer location and higher interest cost. Decline in the net profit compared to the earlier year is the reason for decline in this ratio.

Debt service coverage ratio : It is adversely impacted by increase in Interest cost in furtherance of increase in repo rate.

Return on Investments : As a result of Dividend receipt from it''s investments (previous year Nil).

50 Other Regulatory Disclosures as required under Schedule III Of Companies Act, 2013

a) The Company does not have any Benami property held in its name. No proceeding has been initiated or pending against the company for holding any benami property under the benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

b) During the year, the Company has borrowings from banks on the basis of security of current assets. Returns/Statements filed with the banks on a periodical basis are in agreement with the books of accounts.

c) As per the information available with the company, the company has not transacted with any companies struck off under section 248 of the Companies Act, 2013 or under Section 560 of the Companies Act, 1956

d) There has been no charges or satisfaction yet to be registered with the Registrar of Companies (ROC) beyond the statutory period

e) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

f) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity (ies), including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

g) Company has not received any fund from any person(s) or entity (ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

h) Company has not traded or invested in Crypto currency or virtual currency during the financial year ended March 31, 2023.

i) The Company has not given any loans or advances in the nature of loans to Promoters, Directors, Key Managerial Personnel and related parties, that are repayable on demand or without specifying any terms or period of repayment.

51 Other notes :

a) The Board of Directors of the Company at their meeting held on December 07, 2021, approved the scheme of amalgamation of Sundaram Hydraulics Limited with the Company and their respective shareholders, effective 1st Oct 2021. The Company is awaiting the final hearing and necessary directions in this regard from National Company Law Tribunal ( NCLT).

b) Product inspection and rectification expenses include Rs 27.23 crores, net of insurance claim received, towards cost of certain pre-delivery / increased inspection and rectification work at an overseas customer location.

c) Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2022

27 CONTINGENT LIABILITIES AND COMMITMENTS i) Contingent Liabilities
a) Bills discounted with Banks b) Disputed amounts in respect of GST and Value Added Tax which are contested in appeal and not	2.21	38.08
provided for (of which a sum of Rs. NIL (previous year Rs. 0.34 crores) paid under protest appears under other current assets in the Balance Sheet) ii) Commitments	5.71	6.75
Estimated amount of contracts remaining to be executed on capital account and not provided for	39.64	22.50
28 TERMS OF REpAYMENT OF TERM LOANS AND OTHER LOANS
The term loans and other loans are repayable over a period of 1 to 5 years as per the terms of agreement entered into with the banks / others.
29 OTHER INCOME	2021-22	2020-21
a) Interest on deposits and advances	0.93	1.76
b) Dividend Received	-	0.36
c) Other non-operating income	2.97	2.07
d) Net Gain on foreign currency transactions and translation	10.48	-
30 COST OF MATERIAL CONSUMED	14.38	4.19
Raw Material	2,364.73	1,222.96
Components	460.54	324.19
	2,825.27	1,547.15

40 EMPLOYEE BENEFITS Defined Contribution Plan

a) Provident Fund

In respect of the Employees Provident Fund Scheme, the Company has contributed Rs. 6.55 crores for the year ended 31st March 2022 (previous year Rs. 5.63 crores) to Provident fund Authorities.

b) Superannuation :

The Company has contributed Rs. 0.66 crores for the period 2021-22 (previous year Rs. 0.54 Crores) to the Superannuation trust and the same is recognised in Statement of Profit and Loss under the head employee benefit expenses Defined Benefit Plan

c) In respect of employees Provident fund managed through Trust, the Company has contributed Rs. 3.73 crores for the year ended 31st March, 2022 (previous year Rs. 2.75 crores) to the Provident fund Trust. The interest payable by trust to the beneficiaries of trust as per the rate notified by the Government is met by the trust with contribution from company for the previous year ended 31st March, 2022 of Rs. 2.19 crores. (previous year - Rs. 1.87 Crores).

B. Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that

are either observable or unobservable and consists of the following three levels:

Level 1 hierarchy - Includes Financial Instruments measured using quoted prices in the active market.

Level 2 hierarchy - The fair value of financial Instruments that are not traded in an active market, is determined using valuation techniques which maximise the use of observable market data.

Level 3 hierarchy - Includes financial Instruments for which one or more of the significant inputs are not based on observable market data. This is applicable for unlisted securities.

i) The Fair value of an Equity Instruments classified as at Fair value through profit or loss included under Level 3 Investments is determined using Cost approach.

ii) The fair value of an equity Instrument classified as at fair value through Other Comprehensive Income included under Level 3 Investments is determined using Discounted Cash flow technique in the previous year and the same has been valued by Registered valuer taking a combination of comparable companies multiple method and Discounted cash flow method during the year.

* Valuation as per the registered valuer, for the purpose of Scheme of Amalgamation of Sundaram Hydraulics Ltd. and Wheels India Ltd. has been taken as fair value of equity shares held by the company.

iv) There are no transfers between Level 2 and Level 3 during the year.

v) Trade Receivables, Trade Payables, Cash and Cash equivalents and Other financial Assets and Liabilities are stated at amortized cost which approximates their fair value.

C. Financial risk management

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Risk management policies have been established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review and reflect the changes in the policy accordingly.

a) Management of liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities . In doing this, management considers both normal and stressed conditions.

The Company regularly monitors the rolling forecasts and the actual cash flows to service the financial liabilities on a day-to-day basis through cash generation from business and by having adequate banking facilities.

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.

b) Management of market risk:

The Company is exposed to the following market risks which affects the value of the Financial instruments:

1. Currency risk

2. Interest rate risk

i) foreign currency risk

foreign currency risk is the risk that the fair value of or future cash flows of an exposure will fluctuate because of the changes in foreign exchange rates. As at 31st March, 2022, the net un-hedged exposure to the Company on holding such financial assets and liabilities amounts to Rs. 241.88 Crores.

The Company manages currency exposures by continuously monitoring the foreign currency rates with the transaction rate and takes steps to mitigate the risk using forward/ Derivative contracts.

Sensitivity to risk

A 5% strengthening of the INR against foreign currencies to which the Company is exposed (net of hedge) would have led to approximately an additional Gain of Rs. 12.10 Crores in the Statement of Profit and Loss. A 5% weakening of the INR against these currencies would have led to an equal impact but with opposite effect.

The foreign exchange forward contracts as at 31st March, 2022 is “Nil” (31st March,2021 - no contracts) ii Interest rate Risk

Interest rate is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market interest rates. The Company has Rs. 181.40 Crores Borrowings at floating rate of Interest as at 31st March, 2022 (previous year Rs. 200.84 Crores).

Sensitivity to risk

An increase in interest rate of 1% will likely to affect the profit negatively by Rs. 1.81 crores and a decrease of 1% would have led to an equal impact but with opposite effect.

c) Management of credit risk

Credit risk is the risk of financial loss to the Company if the other party to the financial assets fails to meet its contractual obligations.

i) Trade Receivables:

Concentration of credit risk with respect to trade receivables are limited as the customers are predominantly original equipment manufacturers (OEs). All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Hence, provision for credit loss is not required to be created as per expected credit loss (ECL) method. Refer Note (f) for accounting policy on financial Instruments.

ii) Other financial Assets:

The Company has exposure in Cash and cash equivalents and term deposits with banks. The Company''s maximum exposure to credit risk as at 31st March, 2022 is the carrying value of each class of financial assets as on that date.

The major reason for variance is due to increase in sales and net profit during the year. The Company has

recovered from Covid 19 pandemic as compared to previous year.

50 Other notes :

a) The Board of Directors of the Company, at their meeting held on December 07, 2021, approved the scheme of amalgamation of Sundaram Hydraulics Limited with the Company and their respective shareholders. based on receipt of ''No Objection Letter'' dated February 10, 2022 from NSE / SEBI, the Company has filed an application with the Hon''ble NCLT, Chennai on March 16, 2022 and is awaiting necessary directions in this regard.

b) Consequent to the approval of the composite scheme of amalgamation / arrangement, the holding of 71,43,656 equity shares have been transferred to / vested in M/s. Trichur Sundaram Santhanam & Family Private Limited (TSSFPL), effective February 04, 2022.

c) During the year, the Company has borrowings from banks on the basis of security of current assets. Returns/ Statements filed with the banks on a periodical basis are in agreement with the books of accounts.

51 Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2018

1. Related Party disclosures in accordance with Ind AS 24

i) Subsidiary :

WIL Car Wheels Limited

ii) a) Associates:

Axles India Ltd.

b) Associates by virtue of their shareholding in Wheels India Limited

T.V. Sundram Iyengar & Sons Private Ltd.

Titan Europe Limited., UK

iii) Other Related parties and the relationship where transaction exists

a) Associate''s Subsidiary

Sundaram Industries Private Limited

Sundaram Fastners Ltd

The Associated Auto Parts Private Limited

TVS Automobile Solutions Private Limited

Sundram Fasteners Limited

SI Air Springs Private Limited

(formerly Firestone TVS Private Limited)

TVS Motors Limited

TVS Electronics Ltd

TVS Training & Services Ltd

Titan Steel Wheels Ltd

Titan Wheels Corporation of Illinois

Titan Australia PTY Ltd

PT Titan Wheels Indonesia

b) Subsidiary''s Associate

Topy Industries Limited,Japan

iv) Key Managerial Personnel Mr S Ram

Mr Srivats Ram

v) Post Employment Benefit plan entity Wheels India Employees Gratuity Trust Wheels India Limited Staff Provident Fund Wheels India Senior Officers Superannuation Trust

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Mar 31, 2017

1. The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31^st March, 2009 read with Notification dated 11th May, 2011 and Notification dated 29th December 2011 issued by the Ministry of Corporate Affairs.

Consequently, Exchange differences relating to Long Term Foreign Currency Monetary Items (other than Fixed assets) amounting to Rs.0.26 Crores gain {net of amortization Rs. 0.72 Crores} [Previous year Rs. 0.14 Crores gain {net of amortization Rs. 0.25 Crores}] are adjusted to Foreign currency Monetary Item Translation Difference Account.

2. In the opinion of the management the Long term Investment in Equity shares of Sundaram Hydraulics Limited is considered as strategic in nature and the diminution in the value of the said investment is considered as temporary in nature in view of the long term business outlook and future growth plans. Hence no provision is considered necessary. However the provision made in the earlier year amounting to Rs. 1.00 crore is retained.

3. Final dividend of Rs. 8.00 Per equity share amounting to Rs.9.63 Crores for the Financial year 2016-17 recommended by Board of Directors which is subject to the approval of shareholders at the ensuing Annual General meeting is not recognized as liability as at the date of Balance sheet.

4. The Details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016.

This information has been given in respect of such vendors to the extent they could be identified as ''Micro, Small and Medium Enterprises'' on the basis of information available with the Company on which the Auditors have relied upon.

5. Employee Benefits

The Company has followed the Accounting Standard 15 (AS-15 revised) “Employee Benefits”.

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Company''s defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employee''s Provident Funds and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the government is met by the trust with Contribution from the Company and hence the company has no obligations towards this interest contribution. The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

6. Derivative instruments

Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs.29.05 crores (Previous year - Rs.101.45 crores)

7. Previous year''s figures have been regrouped wherever necessary to conform to

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Mar 31, 2016

1. The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 and Notification dated 29th December 2011 issued by the Ministry of Corporate Affairs.

Consequently, Exchange differences relating to Long Term Foreign Currency Monetary Items (other than Fixed assets) amounting to Rs.0.14 Crores gain {net of amortization Rs. 0.25 Crores} [Previous year Rs. 0.01 Crores loss {net of amortization Rs.0.16 Crores}] are adjusted to Foreign currency Monetary Item translation Difference Account.

2. In the opinion of the management the Long term Investment in Equity shares of Sandarac Hydraulics Limited is considered as strategic in nature and the diminution in the value of the said investment is considered as temporary in nature in view of the long term business outlook and future growth plans. Hence no provision is considered necessary. However the provision made in the previous year amounting to Rs. 1.00 crore is retained.

3. Employee Benefits

The Company has followed the Accounting Standard 15 (AS-15 revised) “Employee Benefits”.

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Company''s defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employee''s Provident Funds and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the government is met by the trust with contribution from the Company and hence the Company has no obligations towards this interest contribution. The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

Disclosures for the Defined Benefit Plans based on Actuarial Reports as on 31/03/2016 are as under:

4. Related party disclosures in accordance with AS18 issued by ICAI Associates:

T.V.Sundram Iyengar & Sons Private Ltd.

Axles India Ltd.

Titan Europe Limited, UK Sundaram Hydraulics Ltd.*

* Ceased to be an associate effective from 25.03.2016

Key Managerial personnel:

Mr S Ram Mr Srivats Ram

5. Derivative instruments

Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs.101.45 crores (Previous year - Rs.8.43 crores)

6. Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification. Signatories to Notes to Financial Statements

Only Audit Committee and Stakeholders Relationship Committee considered.

Non Executive Chairman with effect from 1.9.2015

Mr S Ram is father of Mr Srivats Ram, Managing Director and brother of Mr S Viji.

None of the Directors is a member of more than ten Board-level Committees or Chairman of more than five such Committees, as required under the SEBI (Listing Obligations and Disclosure Requirements ) Regulations 2015 (“SEBI LODR”), across all public limited companies in which they are directors. All the Independent Directors have Complied with the maximum number of Directorships permitted under the Companies Act, 2013 (“Act”).

Attendance at Board Meetings and last Annual General Meeting

During the Financial Year 2015-16 under review, 5 Board Meetings of the Company were held on 23.4.2015, 18.5.2015, 12.8.2015, 5.11.2015 and 11.2.2016 and the last Annual General Meeting was held on 13.8.2015.

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Mar 31, 2014

Rs. in Lakhs

As at As at 31.03.2014 31.03.2013

1 CONTINGENT LIABILITIES AND COMMITMENTS

i) Contingent Liabilities

a) bills discounted with banks 10,766.53 9,400.81

b) Disputed amounts in respect of sales tax, service tax, customs duty and Value Added tax which are contested in appeal and not provided for (of which a sum of Rs.4.63 lakhs (previous year Rs.11.96 lakhs) paid under protest appears under Long term Loans and Advances in the balance Sheet) 122.28 115.31

c) Contingent Liability towards demand for enhanced compensation for Land at bawal, Haryana not provided for 83.73 172.10

ii) Commitments

Estimated contracts remaining to be executed on capital account and not provided for 687.88 1,931.06

2 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS

The term loans and other loans are repayable over a period of 1 to 5 years as per the terms of agreement entered into with the banks / others.

3 The Company opted for accounting the exchange differences arising on reporting Foreign Currency monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notifcation dated 31st march, 2009 read with notifcation dated 11th may, 2011 and notifcation dated 29th december 2011 issued by the ministry of Corporate Affairs.

Consequently, exchange differences relating to Long term Foreign Currency monetary Items (other than Fixed assets) amounting to Rs 153.39 Lakhs loss {net of amortization Rs 1,107.48 Lakhs} [Previous year Rs 409.72 Lakhs loss {net of amortization Rs 202.15 lakhs}] are adjusted to Foreign currency monetary translation difference Account.

4 Employee benefits

The Company has followed the Accounting Standard 15 (AS-15 revised) "employee benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and earned Leave encashment. In case of funded schemes, the funds are recognized by the Income tax Authorities and administered through trustees / Life Insurance Corporation of India. the Company''s Defined contribution plans are Provident Fund and employees Pension Scheme (under the provisions of the employee''s Provident Funds and miscellaneous Provisions Act, 1952) and Superannuation Fund. the Company has no further obligation beyond making the contributions.

In respect of the employees Provident Fund Scheme, the interest payable by the trust to the benefciaries as per the rate notifed by the government is met by the trust with Contribution from the Company and hence the company has no obligations towards this interest contribution. the liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

5 Segment information for the year ended 31st March, 2014 in accordance with AS 17 issued by ICAI

(i) Primary segments:

Automotive components is the only reportable segment of the company (ii) Revenue by Geographical Segment:

6 Derivative instruments

Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs.5,994.11 lakhs (Previous year - Rs.136.14 lakhs).

7 Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.

---

Mar 31, 2013

1 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS

The term loans and other loans are repayable over a period of 1 to 4 years as per the terms of agreement entered into with the Banks / others and over a period of 5 years in respect of Deferred Payable Liabilities

2 The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 and Notification dated 29th December 2011 issued by the Ministry of Corporate Affairs.

Consequently,

i. Exchange differences relating to Long Term Foreign Currency Monetary Items, in so far related to acquisition of depreciable capital assets arising during the year amounting to Rs.Nil [Previous year Rs. 87.53 lakhs (loss) {net of depreciation Rs. 9.54 lakhs}] are (deducted) / added respectively to the cost of assets and depreciated over the balance life of the assets.

ii. Exchange differences relating to Other Long Term Foreign Currency Monetary Items amounting to Rs.409.72 lakhs loss {net of amortization Rs.202.15 lakhs} [Previous year Rs. 133.30 lakhs loss {net of amortization Rs. 537.30 lakhs}] are adjusted to Foreign Currency Monetary Item Translation Difference Account.

3 Employee Benefits

The Company has followed the Accounting Standard 15 (AS-15 revised) "Employee Benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Company''s defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employee''s Provident Funds and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the government is met by the trust with Contribution from the Company and hence the company has no obligations towards this interest contribution. The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

4 Segment information for the year ended 31st March, 2013 in accordance with AS 17 issued by ICAI

(i) Primary segments:

Automotive components is the only reportable segment of the company

(ii) Revenue by Geographical Segment:

5 Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2012

A) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

There is no change in the holding pattern of the Share Capital during the year 2011-12.

b) Rights, Preferences and restrictions

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each member is entitled to one vote by show of hands and while on poll, every shareholder is entitled to vote in proportion to their holdings.

1 CONTINGENT LIABILITIES AND COMMITMENTS

i) Contingent Liabilities

a) Bills discounted with Banks 10,213.14 13,014.98

b) Disputed amounts in respect of sales tax, service tax, customs duty and Property tax which are contested in appeal and not provided for (of which a sum of Rs. 9.57 lakhs - previous year Rs. 7.17 lakhs paid under protest appears under Long term Loans and Advances in the Balance Sheet) 112.58 114.17

c) Contingent Liability towards demand for enhanced compensation for Land at Bawal, Haryana along with interest is not provided for, since the quantum has not yet been determined. Further, the eligible rebate on land cost as per conditions of allotment amounting to Rs.32.40 lakhs from the HSIDC has not been taken into consideration and the same will be accounted on cash basis.

ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 5,134.27 720.06

2 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS

The term loans and other loans are repayable over a period of 1 to 4 years as per the terms of agreement entered into with the Banks / others and over a period of 5 years in respect of Deferred Payable Liabilities.

3 During the year the Company has changed its accounting policy to provide excise duty on closing stock of finished goods at the factory amounting to Rs. 83.41 lakhs (previous year Rs. 55.25 lakhs) as against not providing for the same in the previous year. The change has no impact on Profit/Loss for the current year, however inventory and current liabilities are higher by that amount.

4 The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 issued by the Ministry of Corporate Affairs.

Consequently,

i. Exchange differences relating to Long Term Foreign Currency Monetary Items, in so far related to acquisition of depreciable capital assets arising during the year amounting to Rs. 87.53 lakhs (loss) {net of depreciation Rs. 9.54 lakhs} (Previous year Rs. 15.41 lakhs (loss) {net of depreciation Rs. 3.15 lakhs} are (deducted) / added respectively to the cost of assets and depreciated over the balance life of the assets.

ii. Exchange differences relating to Other Long Term Foreign Currency Monetary Items amounting to Rs.133.30 lakhs loss {net of amortization Rs. 537.30 lakhs} (Previous year Rs. 78.54 lakhs (gain) [net of amortization Rs. (113.86 lakhs)]) are adjusted to Foreign Currency Monetary Item Translation Difference Account.

5 Employee Benefits

The Company has followed the Accounting Standard 15 (AS-15 revised) "Employee Benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Company's defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the government is met by the trust with Contribution from the Company towards shortfall in interest Nil (previous year - Rs.12.83 lakhs). The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

6 Segment information for the year ended 31st March, 2012 in accordance with AS 17 issued by ICAI

(i) Primary segments:

Automotive components is the only reportable segment of the company.

The geographical segments considered for disclosure are as follows: Sales within India include Sales to customers located within India. Sales outside India include Sales to customers located outside India.

a. Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs.560.01 lakhs (Previous year - Rs.7,869.18 lakhs)

---

Mar 31, 2011

As at As at 31.03.2011 31.03.2010

1 Contingent Liability towards bills discounted with banks 13,014.98 14,330.33

2 ii) Contingent Liability towards demand for enhanced compensation for Land along with interest is not provided for since the quantum has not yet been determined. Further the eligible rebate on land cost as per conditions of allotment amounting to Rs.32.40 lakhs from the HSIDC has not been taken into consideration and the same will be accounted on cash basis.

3 The Company has not provided for excise duty on closing stock of finished goods at the factory and customs duty on raw materials in bonded warehouse amounting to Rs.55.25 lakhs (previous year Rs.55.31 lakhs) and accordingly not included the same in the value of said inventories. However, this has no impact on the net profit for the year.

4 The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 issued by the Ministry of Corporate Affairs. Consequently,

i. Exchange differences relating to Long Term Foreign Currency Monetary Items, in so far related to acquisition of depreciable capital assets arising during the year amounting to Rs.15.41 lakhs (loss) {net of depreciation Rs. 3.15 lakhs} (Previous year Rs. 441.43 lakhs (gain) {net of depreciation Rs.17.88 lakhs}) are (deducted) / added respectively to the cost of assets and depreciated over the balance life of the assets.

ii. Exchange differences relating to Other Long Term Foreign Currency Monetary Items amounting to Rs. 78.54 lakhs (gain) {net of amortization Rs (113.86 lakhs)} (Previous year Rs. 36.19 lakhs (gain) {net of amortization Rs. (225.75 lakhs)}) are adjusted to Foreign Currency Monetary Item Translation Difference Account.

5 Employee Benefits:

The Company has followed the Accounting Standard 15 (AS-15 revised) "Employee Benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Companys defned contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the Government is met by the trust with contribution from the Company towards short fall in interest Rs. 12.83 lakhs (last year - Nil). The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

6 Segment information for the year ended 31st March, 2011 in accordance with AS 17 issued by ICAI:

i) Primary segments:

Automotive components is the only reportable segment of the Company.

ii) Revenue by Geographical Segment:

The geographical segments considered for disclosure are as follows:

Sales within India include Sales to customers located within India.

Sales outside India include Sales to customers located outside India.

7 Related Party disclosures in accordance with AS18 issued by ICAI Associates:-

T.V.Sundram Iyengar & Sons Ltd.

Axles India Ltd.

Titan Europe Plc.

Sundaram Hydraulics Ltd.

Key Managerial Personnel:

Mr S Ram

Mr Srivats Ram

8 Derivative instruments:

a. Category-wise quantitative data about derivative instruments that are outstanding at the Balance Sheet date

The purpose for which such derivative instruments were acquired, was to hedge export receivables and interest cash flows.

b. Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs. 7,869.18 lakhs (Previous year - Rs. 5,256.15 lakhs)

9 Previous Years figures have been regrouped wherever necessary to conform to this years classification.

---

Mar 31, 2010

Rs. in Lakhs 2009-10 2008-09

ii) Contingent Liability towards demand for enhanced compensation for Land along with interest is not provided for since the quantum has not yet been determined. Further the eligible rebate on land cost as per conditions of allotment amount ing to Rs.32.40 lacs from the HSIDC has not been taken into consideration and the same will be accounted on cash basis.

1 The Company has not provided for excise duty on closing stock of finished goods at the factory and customs duty on raw materials in bonded warehouse amounting to Rs.55.31 Lakhs (previous year Rs.44.52 lakhs) and accordingly not included the same in the value of said inventories. However, this has no impact on the net profit for the year.

2 The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March 2009 issued by the Ministry of Corporate Affairs.

Consequently,

i. Exchange differences relating to Long Term Foreign Currency Monetary Items, in so far related to acquisition of depreciable capital assets arising during the year amounting to Rs.441.43 lakhs (gain) {net of depreciation Rs. 17.88 lakhs} (Previous year Rs. 971.44 lakhs (loss) {net of depreciation Rs. 40.33 lakhs} are (deducted) / added respectively to the cost of assets and depreciated over the balance life of the assets.

ii. Exchange differences relating to Other Long Term Foreign Currency Monetary Items amounting to Rs.36.19 lakhs (gain) {net of amortization Rs. 225.75 lakhs} (Previous year Rs. 461.22 lakhs (loss) {net of amortization Rs. 625.35 lakhs} are adjusted to Foreign Currency Monetary Item Translation Difference Account.

3 Employee Benefits:

The Company has followed the Accounting Standard 15 (AS-15 revised) "Employee Benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superan- nuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Companys defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest rate payable by the trust to the beneficiaries as notified by the government is met by the trust and hence the Company has no obligations towards this interest contribution. The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

4 Segment information for the year ended 31st March, 2010 in accordance with AS 17 issued by ICAI:

(i) Primary segments:

The Company operates in only one segment viz., automotive components.

5 Previous Years figures have been regrouped wherever necessary to conform to this years classification.