• Abstract and Figures
• Public Full-text

Annual Report of Subsidiary Companies of Sundaram-Clayton Limited for the year 2016-2017 CONTENTS Indian Subsidiaries TVS Motor Company Limited ..................................................................................1 Sundaram Auto Components Limited..................................................................111 TVS Housing Limited ...........................................................................................141 Overseas Subsidiaries TVS Motor (Singapore) Pte. Limited....................................................................154 TVS Motor Company (Europe) B.V. ....................................................................165 PT. TVS Motor Company Indonesia ....................................................................173 Sundaram-Clayton (USA) Limited .......................................................................194 Sundaram Holding USA Inc.................................................................................199 TVS MOTOR COMPANY LIMITED Board of Directors VENU SRINIVASAN Bankers Chairman & Managing Director STATE BANK OF INDIA Corporate Accounts Group Branch, SUDARSHAN VENU Chennai. Joint Managing Director Registered Office H. LAKSHMANAN "Jayalakshmi Estates", No. 29 (Old No.8), Haddows Road, T. KANNAN Chennai - 600 006, Tamil Nadu, India. Tel : 044 - 2827 2233; Fax : 044 - 2825 7121 C. R. DUA CIN No. L35921TN1992PLC022845 R. RAMAKRISHNAN E-mail: [email protected] Website: www.tvsmotor.com Dr. LAKSHMI VENU Share Transfer Agent PRINCE ASIRVATHAM Sundaram-Clayton Limited, HEMANT KRISHAN SINGH "Jayalakshmi Estates", 1st Floor, No.29 (Old No.8), Haddows Road, Audit & Risk T. KANNAN Chennai - 600 006, Tamil Nadu, India. Management Chairman Tel : 044 - 2828 4959; Fax : 044 - 2825 7121 Committee C.R. DUA Email: [email protected] R. RAMAKRISHNAN [email protected] PRINCE ASIRVATHAM Plant Locations Stakeholders' R. RAMAKRISHNAN 1. Post Box No. 4, Harita, Hosur - 635 109, Tamil Nadu, India. Tel : 04344 - 276780 Relationship Chairman Committee 2. Post Box No. 1, Byathahalli Village, VENU SRINIVASAN Kadakola Post, Mysuru - 571 311, Karnataka, India. SUDARSHAN VENU Tel : 0821 - 2596561 Nomination and T. KANNAN 3. Bhatian Village, Bharatgarh Road, Teh. Nalagarh Remuneration Chairman Solan District - 174 101, Himachal Pradesh, India. Committee C.R. DUA Tel : 01795 - 220492/93 H. LAKSHMANAN Subsidiary Companies Corporate VENU SRINIVASAN Sundaram Auto Components Limited, Chennai Social Responsibility Chairman TVS Housing Limited, Chennai Committee H. LAKSHMANAN PT. TVS Motor Company Indonesia, Jakarta PRINCE ASIRVATHAM TVS Motor Company (Europe) B.V., Amsterdam President & CEO K.N. RADHAKRISHNAN TVS Motor (Singapore) Pte. Limited, Singapore Chief Financial S.G. MURALI Sundaram Holding USA Inc., Delaware, USA Officer Company Secretary K.S. SRINIVASAN Statutory Auditors V. SANKAR AIYAR & Co., Chartered Accountants, 2-C, Court Chambers, 35 New Marine Lines, Mumbai - 400 020. Tel. : 022-22004465 E-mail : [email protected] Cost Auditor A.N. RAMAN Cost Accountant, No. 10 P, Muthukumaraswami Salai, Off. Baby Nagar 1st Main Road, Velachery, Chennai - 600 042. Tel. : 044-22433462 E-mail : [email protected] Secretarial Auditors S. KRISHNAMURTHY & CO., Company Secretaries, No. 16, Pattammal Street, Mandaveli, Chennai - 600 028. Tel. : 044-42074012 E-mail : [email protected] Shares listed with BSE Ltd., Mumbai. National Stock Exchange of India Ltd., Mumbai. 1 TVS MOTOR COMPANY LIMITED Directors' report to the Shareholders Year ended Year ended Details 31-03-2017 31-03-2016 The directors have pleasure in presenting the twenty-fifth annual report and the audited financial statements for the Financials (Rupees in crores) year ended 31st March 2017. Motorcycles 5003.91 4570.75 Mopeds 2308.37 1721.60 1. COMPANY PERFORMANCE Scooters 3633.11 3315.66 The Company continued to grow ahead of the industry for Three-wheelers 662.25 1040.88 the third year in succession, registering sales of 28.58 lakhs Spares & Accessories two-wheeler in 2016-17, growing by 11% over last year. and raw materials 1456.18 1304.41 Sales of motorcycles increased by 6% and scooters by 7%. Other Operating Income 126.24 137.62 Three-wheeler sales of the Company declined by 38% in Other Income 173.37 103.85 2016-17, mainly on account of restricted availability of foreign Sales (including Excise duty) & exchanges in some of the African countries. Sales of spare other income 13363.43 12194.77 parts grew by 9%. Till October 2016, the domestic sales of the Company grew by 22%. Post demonetization, the two- EBITDA 1030.44 913.72 wheeler Industry declined by 5%. The normalcy in availability Less: of cash is slowly getting restored. Finance Charges & Interest (Gross) 43.95 48.73 The Company also extended significant discounts in the last Depreciation 287.81 236.05 week of March 2017 to the dealers to enable them to sell Profit before tax 698.68 628.94 BS III emission compliant stocks remaining with them Provision for tax 140.60 139.66 consequent to the order of Hon'ble Supreme Court. Profit after tax 558.08 489.28 The Company's products and services continued to top the 3. DIVIDEND quality charts. Across categories almost all the products The board of directors of the Company (the board) at their have bagged top honours in the J.D. Power 2017 Study. For meeting held on 27th October 2016, declared a first interim the third consecutive year, the Company was rated No.1 dividend of Rs.1.25 per share (125%) for the year 2016-17, Two-wheeler manufacturer of the country. In addition, thereby absorbing a sum of Rs.70.25 Cr including dividend the Company also topped in customer service in inaugural distribution tax. The same was paid to the shareholders on JD Power Customer Satisfaction Index (CSI 2016). 10th November 2016. Total revenue of the Company including other income The board again at its meeting held on 6th March 2017 increased from Rs.12,195 Cr in the previous year to declared a second interim dividend of Rs.1.25 per share Rs.13,363 Cr in the current year. Despite lower sales from (125%) for the year 2016-17, thereby absorbing a sum of November 2016 to March 2017 due to demonetization and Rs.71.04 Cr including dividend distribution tax. The same impact of discount to the dealers to sell BS III stocks, Profit was paid to the shareholders on 18th March 2017. before tax (PBT) for the year 2015-16 increased from The Company has set-off its dividend distribution tax payable Rs.628.94 Cr in the previous year to Rs.698.68 Cr in the under Section 115-O(1A) of the Income Tax Act, 1961 current year. Similarly, PAT increased from Rs.489.28 Cr in against the dividend distribution tax paid by one of its the previous year to Rs.558.08 Cr in 2016-17. subsidiary company on its dividend declared to the extent available. 2. FINANCIAL HIGHLIGHTS Thus, the total amount of both dividends for the year ended Year ended Year ended 31st March 2017 aggregated to Rs.2.50 per share (250%) Details 31-03-2017 31-03-2016 on 47,50,87,114 equity shares of Re.1/- each. SALES The board does not recommend any further dividend for the year under consideration. Quantitative (Numbers in lakhs) Motorcycles 10.77 10.17 4. MANAGEMENT DISCUSSION AND ANALYSIS Mopeds 9.11 7.38 REPORT Scooters 8.70 8.13 INDUSTRY STRUCTURE AND DEVELOPMENTS Two-wheeler Three-wheeler 0.69 1.11 Domestic two-wheeler industry grew at 7% in 2016-17. Higher Total vehicles sold 29.27 26.79 growth rate of 16% was observed till October 2016 through 2 TVS MOTOR COMPANY LIMITED revival of urban demand boosted by the 7th pay commission. The advancement of retail sales due to heavy discount offered Despite lower than normal monsoon in south, output improved by the dealers to clear BSIII stocks can also marginally affect over last year leading to 4% agri GDP growth. Effect of this the sales during the first quarter of 2017-18. Consequently, would have been visible in second half of 2016-17. However, the growth in two-wheeler industry during 2017-18 is expected Government of India's decision to demonetize 86% of the legal to be around 6% to 8% over 2016-17. tender led to severe fall of demand across industries from November 2016. Two-wheeler industry also suffered a decline New Product Launches and Initiatives of 5% in the period from November 2016 to March 2017. The Company has a strategic partnership with BMW Motorrad to develop and manufacture sub-500cc bikes both for domestic In the domestic market, two-wheeler industry grew from 165 and global markets. The BMW G310R is the first motorcycle lakhs in 2015-16 to 176 lakhs in 2016-17. Scooter as a to be manufactured under this partnership and manufacturing category continued to gain category share in total two-wheeler and exports of this motorcycle has commenced. The Company industry. Scooters grew at 11% (from 50.3 lakhs to 56 lakhs) will launch their own motorcycle based on this common and the category share increased to 32% due to changing platform in FY 2017-18. consumer preferences and leading urban demand. The During the year 2016-17, the following new products and motorcycle category grew at 4% (111 lakhs). Within variants were launched. motorcycles, continued traction in urban demand enabled the premium segment to grow by 16% (from 14.7 lakhs in TVS Jupiter: 2015-16 to 17.1 lakhs in 2016-17). In contrast, commuting Jupiter brand lives true to its segment declined by 1% (from 85 lakhs in 2015-16 to 84 philosophy of 'ZYADA KA lakhs in 2016-17). Mopeds grew by 23% in 2016-17. FAYDA'. Launched in Crude oil prices continued to remain subdued for major part September 2013 with next-gen of the year. Similarly, commodity prices were also soft, 110cc CVT-i Engine, best-in- leading to lower economic growth and in turn reduced class mileage and many class- availability of foreign exchange in key countries in Africa, leading features, TVS Jupiter, which impacted exports of two-wheeler and three-wheeler the most awarded scooter took riding comfort of scooters to the next level. from India. Changes in duty structure in Srilanka also affected Company's exports.

Load more

  208

Copy Link