Sundaram Clayton : Annual reports of subsidiaries 2021-2022

Sundaram-Clayton Limited

Annual Report of Subsidiary Companies for the year 2021-2022

Contents
Indian Subsidiaries
TVS Motor Company Limited...................................................................................	1
Sundaram Auto Components Limited..................................................................	232
TVS Housing Limited...........................................................................................	277
TVS Motor Services Limited.................................................................................	295
Intellicar Telematics Private Limited.....................................................................	319
TVS Credit Services Limited................................................................................	357
Harita ARC Private Limited..................................................................................	516
TVS Housing Finance Private Limited.................................................................	527
TVS Two wheeler Mall Private Limited................................................................	538
Sundaram - Clayton DCD Limited........................................................................	549
Overseas Subsidiaries
The Norton Motorcycle Co Limited.......................................................................	560
TVS Motor (Singapore) Pte. Limited....................................................................	572
TVS Digital Pte. Limited.......................................................................................	589
TVS Motor Company (Europe) B.V.,....................................................................604
PT TVS Motor Company Indonesia.....................................................................	610
The GO Corporation.............................................................................................	636
Swiss E-Mobility Group (Holding) AG..................................................................	643
Sundaram Holding USA Inc.................................................................................	656
Sundaram-Clayton (USA) Limited........................................................................	667

TVS MOTOR COMPANY LIMITED

Board of Directors	PROF. SIR RALF DIETER SPETH
	Chairman
	VENU SRINIVASAN
	Chairman Emeritus & Managing Director
	SUDARSHAN VENU
	Managing Director
	K.N. RADHAKRISHNAN
	Director & CEO
	C. R. DUA
	R. GOPALAN
	LALITA D. GUPTE
	T. KANNAN
	KUOK MENG XIONG
	H. LAKSHMANAN
	HEMANT KRISHAN SINGH
	DR. LAKSHMI VENU
Audit Committee	R. GOPALAN, Chairman
	C. R. DUA
	T. KANNAN
Nomination and	C.R. DUA, Chairman
Remuneration	T. KANNAN
Committee	H. LAKSHMANAN
Risk Management	T. KANNAN, Chairman
Committee	SUDARSHAN VENU
	K.N. RADHAKRISHNAN
	LALITA D. GUPTE
	HEMANT KRISHAN SINGH
	K. GOPALA DESIKAN
Stakeholders'	HEMANT KRISHAN SINGH, Chairman
Relationship	VENU SRINIVASAN
Committee	SUDARSHAN VENU
	C.R. DUA
	LALITA D. GUPTE
Corporate	VENU SRINIVASAN, Chairman
Social Responsibility	H. LAKSHMANAN
Committee	R. GOPALAN
Chief Financial	K. GOPALA DESIKAN
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. : [phone]
	E-mail : [e-mail]
Cost Auditor	A.N. RAMAN
	Cost Accountant,
	No. 10 P, Muthukumaraswami Salai,
	Off. Baby Nagar 1st Main Road,
	Velachery, Chennai - 600 042.
	Tel. [phone]
	E-mail : [e-mail]

Secretarial Auditors S. KRISHNAMURTHY & CO., Company Secretaries,

No. 16, Pattammal Street, Mandaveli, Chennai - 600 028. Tel. : [phone]

E-mail : [e-mail]

Shares listed with BSE Ltd., Mumbai.

National Stock Exchange of India Ltd., Mumbai.

Bankers

STATE BANK OF INDIA

Corporate Accounts Group Branch, Chennai.

Registered Office

"Chaitanya" No. 12, Khader Nawaz Khan Road, Nungambakkam, Chennai 600 006, Tamil Nadu, India Tel : [phone] Fax : [phone]

CIN No. L35921TN1992PLC022845 E-mail:[e-mail] Website: www.tvsmotor.com

Share Transfer Agent

Integrated Registry Management Services Private Limited 2nd Floor, Kences Towers, No. 1, Ramakrishna Street, North Usman Road, T Nagar, Chennai-600 017

Tel: [phone]; Fax: [phone]

Email:[e-mail], [e-mail] Plant Locations

1. Post Box No. 4, Harita, Hosur - 635 109, Tamil Nadu, India. Tel : 04344 - 276780
2. Post Box No. 1, Byathahalli Village,
   Kadakola Post, Mysuru - 571 311, Karnataka, India. Tel : 0821 - 2596561
3. Bhatian Village, Bharatgarh Road, Teh. Nalagarh, Solan District - 174 101, Himachal Pradesh, India. Tel : 01795 - 220492/93

Subsidiary Companies

Sundaram Auto Components Limited

TVS Housing Limited

TVS Motor Services Limited

Intellicar Telematics Private Limited

TVS Credit Services Limited

TVS Electric Mobility Limited

TVS Motor (Singapore) Pte. Limited, Singapore

The Norton Motorcycle Co Limited, United Kingdom

TVS Motor Company (Europe) B.V., Amsterdam

PT TVS Motor Company Indonesia, Jakarta

Swiss E-Mobility Group (Holding) AG, Switzerland

The GO Corporation, Switzerland

TVS Digital Pte. Ltd, Singapore

CONTENTS	Page Nos.
Financial Highlights	2
Directors' Report to the shareholders	3
Standalone Financial Statements	95
Consolidated Financial Statements	158

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Rupees in crores

IGAAPInd AS

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

7,875 8,694 10,788 12,195 13,363 15,618 18,217 16,455 16,784 20,810

461 536 669 914 1,030 1,274 1,441 1,378 1,462 1,981

254 355 456 629 699 879 961 787 826 1,243

(91) (3) - - - - - (32) - (30)

116 262 348 489 558 663 670 592 612 894

1,048 1,174 1,419 1,751 2,046 2,503 2,837 3,185 3,289 3,731

47.51 47.51 47.51 47.51 47.51 47.51 47.51 47.51 47.51 47.51

1,177 1,368 1,598 1,911 2,361 2,833 3,300 3,571 4,123 4,775

1,225 1,416 1,646 1,959 2,409 2,881 3,348 3,619 4,171 4,822

634 528 970 924 1,107 1,189 1,400 2,022 1,106 1,601

2.44 5.51 7.32 10.30 11.75 13.95 14.11 12.47 12.88 18.81

1.20 1.40 1.90 2.50 2.50 3.30 3.50 3.50 3.50 3.75

25.78 29.81 34.65 41.23 50.71 60.64 70.47 76.18 87.79 101.50

6.09 6.35 6.36 7.29 7.06 7.74 7.87 8.19 8.53 9.44

3.24 4.10 4.24 5.20 5.30 5.66 5.28 4.79 4.93 5.98

14.68 18.88 20.27 23.24 21.67 24.61 23.55 16.62 17.15 22.77

9.69 19.82 22.73 27.15 25.56 25.06 21.52 17.01 15.72 19.87

TVS MOTOR COMPANY LIMITED

Financial Highlights

Details

Sales & other income @

Profit before interest, depreciation, amortisation and tax*

Profit before tax*

Exceptional / Extraordinary Items

Profit after tax

Net fixed assets

Share capital

Reserves and surplus

Net worth

Total borrowings

Earnings per share ($)

Dividend per share ($)

Book value per share ($)

Operating EBITDA (%)

Profit before tax * / Turnover (%)

Return on capital employed (%)

Return on net worth (%)

Notes:

• Sales includes Excise duty upto June 2017.

* Figures stated are before exceptional and extraordinary items.

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TVS MOTOR COMPANY LIMITED

DIRECTORS' REPORT TO THE SHAREHOLDERS

The Directors have the pleasure in presenting the 30th annual report and the audited accounts of the Company for the year ended 31st March 2022.

1. COMPANY PERFORMANCE

Key Performance Snapshot

The Company registered sales of 31.37 lakh units of two-wheelers in 2021-22. The Company registered its highest turnover and profit before tax until now of $ 20,791 Cr and

• 1,213 Cr, respectively, in spite of many critical headwinds.

Macro Overview

The year was marked by the severe second wave of the pandemic, supply chain disruptions and the onset of a super cycle of commodity price increases. The last quarter also witnessed the outbreak of geopolitical unrest and strife, which though localized to some extent, affected the entire globe.

However, 2021-22 will be remembered for the unparalleled resilience of human spirit across the world, even more so in the Indian populace, the Indian economy, industry, and the Company. In response to the pandemic 11.4 billion and

1.86 billion doses of vaccine were delivered globally and in India, respectively. The Company ensured 100% vaccination coverage of all its employees. The vaccination coverage was also facilitated for employee families. Many employees from TVS and SST also provided exception service as voluntary CoVID frontline warriors.

Robust growth of Indian economy in fiscal 2022 as activities return to pre-CoVID levels

The Indian economy bounced back after the CoVID-induced shock in fiscal 2021. It withstood the second wave of the CoVID pandemic that hit India in April-June 2021 and the third wave in January 2022 as vaccination levels increased and the people and the government learned to adapt their responses through experiences gained during the first wave. Increased vaccination coverage, reduction in mortality rates and ease of restrictions gave a fillip to private consumption and supported recovery of aggregate demand. The recovery was also supported by increased spending by the government, strong pick up in export demand, and the RBI continuing to support the incipient recovery by maintaining a low interest rate regime. The Indian economy regained its tag of being one of the fastest growing economies in the world.

As per the second advance of the National Statistical Office, the economy was estimated to have grown by 8.9% during fiscal 2022. Real GDP growth returned to pre-pandemic levels, though capacity utilization and consumer confidence are yet to reach pre-pandemic levels, signalling further growth potential.

Mobility Industry Performance - India overview

The domestic two-wheeler industry declined by 11% in 2021-22 on the back of a 13% decline in 2020-21. The industry size is at 13.47 million units, similar to 2011-12 levels of 13.41 million units. The 2-wheeler industry saw sharp changes in the growth momentum over the quarters. Q1 2021-22 grew by 85% partially due to the low industry base of last year and all subsequent quarters witnessed declines, over the comparable periods of last year - Q2 (12.5%), Q3 (25%) and Q4 (23.3%).

Compared to the two-wheeler industry decline of 11% in 2021-22, the Company's performance in domestic was at a 6% decline in sales volume.

Mobility Industry Performance - International Business overview

In the International Business, exports of two-wheelers in 2021-22 were at 10.9 lakh units with a growth of 43% over 2020-21 against an industry growth of 36% for two-wheeler exports from India. The Company achieved a milestone of exceeding 1 million units in two-wheeler export. Three- wheeler exports during the year reached 1.63 lakh units, a growth of 41% over 2020-21.

Mobility Industry Performance - Electric Vehicles (EV) Overview

The Company continued its expansion in its EV footprint and the buildout of the infrastructure as this category gains momentum. The Company has created a dedicated vertical with over 600 engineers and adopted the Centres of Competency (COCs) with agile working approach. The EV 2W industry predominantly operates in the scooter form, and today is ~10% of the total scooter Industry (ICE + EV). TVS has sold more than 10,000 EV vehicles in 2021-22 with a geographical presence equivalent to 50%+ of the EV industry. Further, there have been alliances and joint initiatives with partners like TATA Power, JIO BP, BESCOM among others to expedite the creation of the charging infrastructure.

New Product Launches

The Company's new product launches have been well received by consumers, experts, and the trade. TVS RAIDER 125 (Sporty commuter motorcycle) consumer's appreciation of the products manifested as advance orders that continue to be very strong across the country and global markets like South Asia and Latin America. TVS Jupiter 125 (executive commuter scooter) is an extension of the Company's leading Scooter Brand, TVS Jupiter. TVS Apache 160 4V (premium segment) was another successful premium product variant that was launched. TVS HLX 150 5 speed is a very significant product launch targeting the African commercial use market where the Company enjoys strong market presence.

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