TVS Srichakra Ltd. - Annual Report 2020

REF:TSL:SEC:2020/ June 26, 2020

P J Towers Dalal Street, Fort, Mumbai 400 001

National Stock Exchange of India Ltd., SCRIP CODE : TVSSRICHAK 5th Floor, Exchange Plaza Bandra (E), Mumbai - 400 051

Dear Sirs,

Sub : Outcome of Board Meeting held on 26.6.2020

Ref : Disclosure under Reg. 30, 33, and 47 read with Sch. Ill of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular dated 12th May 2020

We wish to inform that, the Board of Directors at their meeting held on 26.6.2020 (today) inter alia considered and approved the following

a) Audited, Standalone and Consolidated financial results of the Company for the quarter and year ended 31.3.2020
b) The Board has not recommended any final dividend. The interim dividend of Rs 20.10 per Equity Share declared by the Board at its meeting held on 10th March, 2020 shall be considered as final dividend for the year ended 31st March, 2020

We are enclosing a copy of the Audited Financial Results (Standalone and Consolidated) of the Company for the quarter and year ended March 31, 2020 along with statements of Assets & Liabilities, Auditors' Report.

As required under Proviso 2 to Reg. 33(3)(d) of SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company hereby declares that the Statutory Auditors have expressed an unmodified opinion on the standalone and Consolidated financial results for the year ended 31.3.2020

In terms of the relaxation granted vide Circular dated May 12, 2020 issued by Securities and Exchange Board of India, bearing Ref. No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 on the provisions of Regulation 47 of the SEBI Listing Regulations, the Audited Financial Results are not being published in the newspapers.

The meeting of Board of Directors commenced at 10.20 AM and concluded at 12.45 PM

Kindly take the above on record.

Thanking you

Yours faithfully for TVS SRICHAKRA LIMITED

PADMANABHA N SRINIVASAN Digitally signed by PADMANABHAN SRINIVASAN DN: c=IN, o=Personal, postalCode=625003, st=TAMIL NADU, serialNumber=e2ae89454ea37a259c6e9403fa66 1ca7a162c1e51b45cf37cf6fad1d863cb2f8, cn=PADMANABHAN SRINIVASAN Date: 2020.06.26 13:06:16 +05'30'

P SRINIVASAN SECRETARY

TVS Srichakra Limited CIN: L25111TN1982PLC009414 Regd. Office: TVS Building, 7-B, West Veli Street, Madurai 625 001. Tel:+91 0452 2356400, Fax: +91 0452 2443466 I Website: www.tvseurogrip.com Manufacturing Unit: Vellaripatti, Melur Taluk, Madurai-625 122, Tel:+91 452 2443300

BSE Ltd., SCRIP CODE : 509243

Independent Auditors' Report on the standalone financial results

TO THE BOARD OF DIRECTORS OF TVS SRICHAKRA LIMITED

Opinion

1. We have audited the accompanying standalone financial results of TVS Srichakra Limited ("the Company") for the quarter and year ended 31st March 2020 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as amended ("Listing Regulations").
1. In our opinion and to the best of our information and according to the explanations given to us the Statement:
- a. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard;
- b. gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the net profit and other comprehensive income and other financial information of the Company for the quarter and year ended 31st March 2020.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the financial results under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

Note 6 to the standalone financial results, regarding the management's impairment assessment of property, plant and equipment, right of use assets, intangible assets, investments, trade receivables and inventory valuation as at 31st March 2020 being considered as unimpaired based on the future operations plans and cash flow projections made based on various judgments and estimates related to inflation, discount rates, and implications expected to arise from COVID-19 pandemic, wherein actual results could vary.

Our opinion is not modified in respect of the above matter.

Management's and Board of Directors' Responsibilities for the Standalone Financial Results

This Statement has been prepared on the basis of the audited standalone financial statements for the year ended 31st March 2020.

The Company's Board of Directors are responsible for the preparation of these standalone financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial results that give a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the standalone financial results, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

1. Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial results.
1. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the standalone financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of standalone financial statements on whether the entity has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
- Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as

a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure, and content of the standalone financial results, including the disclosures, and whether the standalone financial results represent the underlying transactions and events in a manner that achieves fair presentation.
1. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
1. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter

Attention is drawn to the fact that the figures for the quarter ended 31st March 2020 and the corresponding quarter ended in the previous year as reported in these financial results are the balancing figures between audited figures in respect of full financial year and the published unaudited year to date figures up to the end of the third quarter of the relevant financial year which were subject to limited review by us.

Our opinion is not modified in respect of this matter.

For PKF Sridhar & Santhanam LLP Chartered Accountants

Firm's Registration No. 003990S/S200018

Digitally signed by Balasubramanian Date: 2020.06.26 13:03:03

Balasubrama nian

T V Balasubramanian Partner Membership No. 027251 +05'30'

Place: Chennai Date: 26th June 2020 UDIN: 20027251AAAADV5687

TVS SRICHAKRA LIMITED CIN: L25111TN1982PLC009414

Regd Office: TVS Building ,7-B West Veli Street,Madurai - 625001

STATEMENT OF STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2020

	Rs in Crores except EPS
		Standalone
			Quarter ended		Year Ended
		31_03_2020	31_12_2019	31_03_2019	31_03_2020	31_03_2019
Particulars		Audited (ReferNote 5)	Unaudited	Audited (ReferNote 5)	Audited	Audited
1	Income
(a)	Revenue from Operations	417_14	497_54	579_89	2,052_24	2,381_76
	(b) Other Income	3_99	3_21	7_49	9_48	11_42
	Total Income (a)+(b)	421_13	500_75	587_38	2,061_72	2,393_18
	2 Expenses
(a)	Cost of materials consumed	242_98	283.46	366.95	1,186.22	1,512.96
	(b) Purchases of stock-in-trade	0.15	0.13	0.25	0.66	1.20
(c)	Changes in inventores of finished goods, work-in-progress andstock-in-trade	-7.77	-15.34	-23.19	-11.23	-66.34
(d)	Employee benefits expenses	66.71	70.97	70.28	282.24	273.42
(e)	Financial costs	8.64	8.01	10.71	35.93	34.50
(f)	Depreciation and amortisation expenses	30.45	22.65	22.13	97.66	82.83
	(g) Other expenses	82.29	110.19	109.18	380.47	401_31
	Total expenses (sum of (a) to (g»	423.45	480.07	556.31	1,971_95	2,239_88
	3 Profit / (Loss) before exceptional items and Tax (1-2)	-2.32	20.68	31.07	89.77	153.30
	4 Exceptional Items	-	-	-	-	-
	5 Profit / (Loss) before tax (3+4)	-2.32	20.68	31.07	89.77	153.30
	6 Tax Expense
(a)	Current Tax.	-1.67	6.66	14.30	27.75	46.00
(b)	Deferred Tax	-25.16	0.62	0.73	-22.40	4.13
	7 Net Profit / (Loss) after tax for the period (5-6)	24.51	13.40	16.04	84.42	103.17
	8 Other Comprehensive Income
	(a) Items that will not be reclassified to Statement of Profit and loss	-0.61	-	30.72	-0.61	30.72
	Income tax relating to the above	0.15	-	-8.05	0.15	-8.05
	(b) Items that will be reclassified to Statement of Profit and Loss	-	-	-	-	-
	Income tax relating to the above	-	-	-	-	-
	Other Comprehensive Income	-0.46	-	22.67	-0.46	22.67
9	Total Comprehensive Income for the period(7+8)	24.05	13.40	38.71	83.96	125.84
	10 Paid-up equity share capital (Face value of Rs_10/- each)	7.66	7.66	7_66	7.66	7.66
	11 Other Equity				754.33	735.49
	12 Earnings Per Share (EPS) (of Rs.10 each)(not annualized)
	Basic ( In Rs.)	32.00	17.49	20.94	110.25	134.74
	Diluted ( In Rs.)	32.00	17.49	20.94	110.25	134.74

TVS Srichakra Limited

GIN: L25111TN1982PLG009414 Regd. Office: TVS Building, 7-B West Veli Street, Madurai 625 001. Tel: +91 0452 2356400. Fax: +91 0452 2443466 I Website: www.tvseuroario.com

Notes:

The audited standalone financial results of the Company for the quarter and year ended March 31, 2020 have been prepared in accordance with the Indian Accounting Standards (INDAS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as amended.
The above audited standalone financial results of the Company for the quarter and year ended March 31, 2020 have been reviewed by the Audit Committee and thereafter approved by the Board of Directors at their Meeting held on June 26, 2020. The Statutory Auditors of the Company have audited the results for the quarter and year ended March 31, 2020.
The Company's business activity falls within a single reportable business segment, viz, Automotive Tyres, Tubes and Flaps.
The Company has adopted INDAS 116 "Leases", effective from April 1, 2019 as notified by the Ministry of Corporate Affairs (MCA) in the Companies (Indian Accounting Standard) Amendment Rules 2019, using modified retrospective method. On transition, the adoption of new standard resulted in recognition of Right-Of-Use Asset and a lease liability; Consequently Rs.9.65 crores of prepaid lease rentals have been adjusted against the opening reserves as on April 1, 2019.
The figures for the quarter ended 31st March 2019 and 31st March 2020 are the balancing figures between audited figures in respect of the full financial year and the published unaudited year to date figures up to the end of the third quarter of the relevant financial year.
The company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of inventory, receivables, property, plant and equipment, right of use assets, intangible assets and investments. The company, as at the date of the approval of these standalone financial results, has performed evaluation of available information, considered sensitivity on the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company's standalone financial results may differ from that estimated as at the date of approval of these standalone financial results.
The Taxation Laws (Amendment) Act, 2019 has amended the Income Tax Act, 1961 and the Finance (No.2) Act, 2019 by inserting section 115BAA which provides domestic companies with a nonreversible option to opt for lower tax rates, provided they do not claim certain deductions. On evaluating the options, the Company has decided to adopt the new tax structure from the current financial year. Accordingly, the provision for income tax and deferred tax balances have been recordedlremeasured using the new tax rate and the Company had reversed deferred tax liabilities amounting to Rs.23.36 crores.

S. TVS Sensing Solutions Private Limited, a subsidiary of the company has subscribed to 90% of the equity shares of MIs Fiber Optic Sensing Solutions Private Limited. Accordingly, the Company has become a subsidiary of TVS Srichakra Limited with effect from Sth August 2019.

During the quarter ended 31 st March 2020, the Company has paid an interim dividend of Rs.20.10 per equity share (aggregating to a sum of Rs.1S.54 crores including Dividend Distribution Tax) which shall be treated as Final Dividend for the year.

Place: Madurai Date: 26-06-2020

BY ORDER OF THE BOARD

MANAGING DIRECTOR SHOBHANA RAMACHANDHRAN Digitally signed by SHOBHANA RAMACHANDHRAN DN: c=IN, o=Personal, postalCode=625002, st=Tamil Nadu, 2.5.4.20=6c0f755a171c0b387e6004edc21b08ec645570a85187b90c6feb9ff42dcddf2c, serialNumber=dde029c2e70622c194d73ddbf098e5f7c47bc7e8d86855299659e197fb2c3879, cn=SHOBHANA RAMACHANDHRAN Date: 2020.06.26 13:01:18 +05'30' SHOBHANA RAMACHANDHRAN Digitally signed by SHOBHANA RAMACHANDHRAN DN: c=IN, o=Personal, postalCode=625002, st=Tamil Nadu, 2.5.4.20=6c0f755a171c0b387e6004edc21b08ec645570a85187b 90c6feb9ff42dcddf2c, serialNumber=dde029c2e70622c194d73ddbf098e5f7c47bc7e8 d86855299659e197fb2c3879, cn=SHOBHANA RAMACHANDHRAN

TVS Srichakra Limited CIN: L25111TN1982PLC009414 Regd. Office: TVS Building, 7-B West Veli Street, Madurai 625 001. Tel: +91 04522356400. Fax: +91 04522443466 I Website: www.tvseuroorin.com

TVS ~EUNDGN/P

TVS SRICHAKRA LIMITED CIN: L25111TN1982PLC009414 Regd Office: TVS Building ,7-B West Veli Street,Madurai - 625001 AUDITED STANDALONE STATEMENT OF ASSETS AND LIABILITIES AS AT MARCH 31, 2020

			Rs in Crores
	Particulars	As at	As at
		31-Mar-20	31-Mar-19
I. ASSETS

	1 Non-current assets
(a)	Property, Plant and Equipment	625.06	616.65
(b)	Capital work-in-progress	37.38	33.24
(c)	Other Intangible assets	4.08	5.57
(d)	Right of Use Assets	17.51	-
(e)	Intangible assets under development	10.80	0.61
(f)	Financial Assets
	(i) Investments	109.11	106.93
	(ii) Loans	73.73	75.89
(g)	Income tax assets (net)	9.27	9.67
(h)	Other non-current assets	13.65	47.63

	2 Current assets
(a)	Inventories	410.51	488.75
(b)	Financial Assets
	(i) Trade receivables	196.98	323.63
	(ii) Cash and cash equivalents	1.61	7.50
	(iii) Bank balances other than (ii) above	9.52	8.96
	(iv) Others	39.04	41.18
(c)	Other Current Assets	51.23	34.10

	TOTAL ASSETS	1,609.48	1,800.31

	II. EQUITY AND LIABILITIES

1 Equity
(a)	Equity Share capital	7.66	7.66
(b)	Other Equity	754.33	735.49

	Liabilities
	2 Non-current liabilities
(a)	Financial Liabilities
	(i) Borrowings	123.88	46.88
	(ii) Other financial liabilities (other than those specified above)	82.22	84.35
(b)	Provisions	9.54	9.56
(c)	Deferred tax liabilities (Net)	32.99	55.54
(d)	Other Non-current liabilities	4.48	4.88

	3 Current liabilities
(a)	Financial Liabilities
	(i) Borrowings	194.89	362.69
	(ii) Trade payables
	Total outstanding dues of Micro and Small Enterprises	0.69	1.08
	Total outstanding dues of creditors other than Micro and Small Enterprises	210.63	326.16
	(iii) Other financial liabilities (other than those specified above)	160.54	154.72
(b)	Other current liabilities	23.49	7.33
(c)	Provisions	4.14	3.97

	TOTAL EQUITY AND LIABILITIES	1,609.48	1,800.31

Place: Madurai Date: 26-06-2020 BY ORDER OF THE BOARD

SHOBHANA RAMACHANDHRAN Digitally signed by SHOBHANA RAMACHANDHRAN

serialNumber=dde029c2e70622c194d73ddbf098e5f7c47bc7e8d86855299659e197fb2c3879, cn=SHOBHANA RAMACHANDHRAN

TVS Srichakra Limited GIN: L25111TN1982PLG009414 Regd. Office: TVS Building, 7-B West Veli Street, Madurai 625 001. Tel: +91 0452 2356400. Fax: +!=l1 04!'i? ?44::l4RR I Wph.,it",· \M\AI\AI hI"''''' orl",.,.i" " •..• ""

MANAGING DIRECTOR

TVS SRICHAKRA LIMITED CIN: L25111TN1982PLC009414 Regd Office: TVS Building ,7-B West Veli Street,Madurai - 625001 STATEMENT OF AUDITED STANDALONE CASH FLOW FOR THE YEAR ENDED MARCH 31,2020

Rs in crores

Particulars		31-Mar-20		31-Mar-19
A_ CASH FLOW FROM OPERATING ACTIVITIES:
Profit before tax		89.77		153.30
Adjustments for:
Depreciation	97.66		82.83
Interest paid	35.93		34.50
Interest received	(3.20)		(11.42)
Loss/(Gain) due to Exchange rate Fluctuations	(0.40)		2.92
Advances Written off	-		0.16
Ind AS Adjustment - Leases	(9.65)		-
Bad Debts	-		0.91
Unrealized changes in Fair Value	(0.07)		(2.25)
Assets Condemned	-		0.12
		120.27		107.77
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES		210.04		261.07
Adjustments for:
Trade Receivables	126.65		(80.84)
Other Receivables	44.34		(34.06)
Inventories	78.24		(157.22)
Trade and other payables	(133.24)		143.84
		115.99		(128.28)
Cash Generated From Operations		326.03		132.79
Direct taxes paid		(28.15)		(50.16)
NET CASH FLOW FROM OPERATING ACTIVITIES (A)		297.88		82.62

B. CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Assets	(136.42)		(118.95)
Investments Purchased	(2.18)		(6.00)
Interest received	3.20		11.42
Bank deposits	(0.55)		(0.12)
NET CASH FLOW FROM INVESTING ACTIVITIES (B)		(135.95)		(113.66)

C. CASH FLOW FROM FINANCING ACTIVITIES:
Interest paid	(35.93)		(32.22)
Proceedsl (Repayment) from short term borrowings	(167.80)		69.47
Proceeds/(Repayment)of long term borrowings	91.38		31.28
Dividend & Dividend tax paid	(55.47)		(36.63)
NET CASH FLOW FROM FINANCING ACTIVITIES: (C)		(167.82)		31.90

NET INCREASEI (DECREASE) IN CASH AND CASH EQUIVALENTS
(A+B+C)		(5.89)		0.87
OPENING CASH AND CASH EQUIVALENTS		7.50		6.63
CLOSING CASH AND CASH EQUIVALENTS		1.61		7.50

TVS Srichakra Limited CIN: L25111TN1982PLC009414 Regd. Office: TVS Building, 7-B West Veli Street, Madurai 625 001. Tel: +91 0452 2356400 F::!x' +!=l1 n4"i? ?44~4f;f; I W",hcit",· ""AI'AI h,cooor •..• ,...in "" •.•.•