q) Provisions and contingent liabilities

i) Provision

A provision is recorded when the Company has a
present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources will be required to settle the obligation
and the amount can be reasonably estimated.
The estimated liability for product warranties
is recorded when products are sold based on
technical evaluation.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.

The increase in the provision due to the passage
of time is recognised as interest expenses.

ii) Contingent liabilities

Wherever there is a possible obligation that
arises from past events and whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future
events not wholly within the control of the entity
or a present obligation that arises from past
events but is not recognised because (a) it is not
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation; or (b) the amount of the obligation
cannot be measured with sufficient reliability,
are considered as contingent liabilities. Show
cause notices are not considered as Contingent
Liabilities unless converted into demand.

iii) Warranty

Provision is made for estimated warranty claims
in respect of vehicles sold which are still under
warranty at the end of the reporting period.
These claims are expected to be settled from
the next financial year. Management estimates
the provision based on historical warranty claim
information; and any recent trends that may
suggest future claims could differ from historic
and the dues which are payable within 12 Months
is classified as current and others are non-current.

r) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision Maker.

The Company's Chief Operating Decision Maker
(CODM) examines Risks and Rewards of the entity's
performance and allocates the resources aligning with
the Company's strategy.

The Company identified operations from which
significant risks and rewards are derived in two
verticals viz (a) Automotive Vehicles & Parts and
related investments and (b) Investment held in
Financial services.

Profit of the Financial services vertical represents
dividend, interest, profit / (Loss) on fair valuation / sale
of investments.

The Investments of the Company in TVS Credit Services
Limited and TVS Motor Services Limited and other non¬
strategic companies categorized as Financial services.

s) Leases

Leases are recognised as a right-of-use asset and a
corresponding liability at the date at which the leased
asset is available for use by the Company. Contracts
may contain both lease and non-lease components.
The Company allocates the consideration in the
contract to the lease and non-lease components
based on their relative stand-alone prices. However,
for leases of buildings, for which the Company is a
lessee, it has elected not to separate lease and non¬
lease components and instead accounts for these as
a single lease component.

Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities
include the net present value of the following
lease payments:

^ fixed payments (including in-substance fixed
payments), less any lease incentives receivable
^ variable lease payment that are based on an
index or a rate, initially measured using the index
or rate as at the commencement date

^ amounts expected to be payable by the
Company under residual value guarantees
^ the exercise price of a purchase option if the
Company is reasonably certain to exercise that
option, and

^ payments of penalties for terminating the lease,
if the lease term reflects the Company exercising
that option

Lease payments to be made under reasonably
certain extension options are also included in the
measurement of the liability. The lease payments
are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, which
is generally the case for leases in the Company, the
company's incremental borrowing rate is used,
being the rate that the Company would have to pay
to borrow the funds necessary to obtain an asset
of similar value to the right-of-use asset in a similar
economic environment with similar terms, security
and conditions.

To determine the incremental borrowing rate,
the Company:

^ where possible, uses recent third-party financing
received by the Company as a starting point,
adjusted to reflect changes in financing conditions
since third party financing was received
^ uses a build-up approach that starts with a risk¬
free interest rate adjusted for credit risk for leases
held by the Company which does not have recent
third party financing, and

^ makes adjustments specific to the lease, e.g.
term, country, currency and security.

The Company is exposed to potential future increases
in variable lease payments based on an index or rate,
which are not included in the lease liability until they
take effect. When adjustments to lease payments
based on an index or rate take effect, the lease liability
is reassessed and adjusted against the right-of-
use asset.

Lease payments are allocated between principal and
finance cost. The finance cost is charged to profit and
loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of
the lease liability for each period. The carrying amount
of lease liability is reduced by net lease payments (i.e.
lease payments net off finance cost).

Variable lease payments that depend on sales are
recognised in profit and loss in the period in which the
condition that triggers those payments occurs.

Right-of-use assets are measured at cost comprising
the following:

^ the amount of the initial measurement of
lease liability

^ any lease payments made at or before
the commencement date less any lease
incentives received

^ any initial direct costs, and
^ restoration costs.

Right-of-use assets are generally depreciated over
the shorter of the asset's useful life and the lease term
on a straight-line basis. If the Company is reasonably
certain to exercise a purchase option, the right-of-
use asset is depreciated over the underlying asset's
useful life.

Payments associated with short-term leases of
equipment and all leases of low-value assets are
recognised on a straight-line basis as an expense in
profit and loss. Short-term leases are leases with a lease
term of 12 months or less. Low-value assets comprise IT
equipment and small items of office furniture.

t) Cash and Cash equivalents

For the purpose of presentation in the statement of
cash flows, cash and cash equivalents include cash
on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value,

and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

u) Trade receivables

Trade receivables are measured at their transaction
price on initial recognition, unless it contains
a significant financing component or pricing
adjustments embedded in the contract in which cases,
it is recognised at fair value. Trade receivables are held
with the objective of collecting the contractual cash
flows and therefore are subsequently measured at
amortised cost less allowance for expected credit loss.

v) Contract liabilities

A contract liability is the obligation to transfer goods
to a customer for which the Company has received
consideration (or an amount of consideration is due)
from the customer. If a customer pays consideration
before the Company transfers goods or services to
the customer, a contract liability is recognised when
the consideration is received. Contract liabilities are
recognised as revenue when the Company performs
under the contract.

w) Investments and Other financial assets

i) Classification

The Company classifies its financial assets in the
following categories:

^ Those to be measured subsequently at fair
value (either through Fair Value Through
Other Comprehensive Income (FVTOCI), or
Fair Value Through Profit or Loss (FVTPL)), and

^ Those measured at amortized cost.

The classification depends on the entity's business
model for managing the financial assets and the
contractual terms of the cash flow.

ii) Measurement

At Initial recognition, the Company measures a
financial asset at its fair value plus transaction
cost (in the case of a financial asset not at FVTPL)
that are directly attributable to the acquisition of
the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss
are expensed in profit and loss.

Debt Instruments

Subsequent measurement of debt instruments
depends on the company's business model
for managing the asset and the cash flow
characteristics of the asset. There are three

measurement categories into which the Company
classifies its debt instruments.

Amortised Cost

Assets that are held for collection of contractual
cash flows where those cash flows represent
solely payments of principal and interest, are
measured at amortised cost. A gain or loss on
debt instrument that is subsequently measured
at amortised cost and is not part of a hedging
relationship is recognised in profit and loss when
the asset is de-recognised or impaired. Interest
income from these financial assets is included
in other income using the effective interest
rate method.

Fair value through other comprehensive
income (FVTOCI)

Assets that are held for collection of contractual
cash flows and for selling the financial assets,
where the assets' cash flows represent solely
payments of principal and interest, are measured
at FVTOCI. Movements in the carrying amount are
taken through OCI, except for the recognition of
impairment gains or losses, interest income and
foreign exchange gains and losses which are
recognised in profit and loss.

Fair Value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised
cost or FVTOCI are measured at FVTPL. A gain or
loss on a debt investment that is subsequently
measured at FVTPL and is not part of a hedging
relationship is recognised in profit and loss and
presented in the statement of profit and loss in
the period in which it arises. Interest income from
these financial assets is included in other income.

Equity instruments

The Company subsequently measures all
investments in equity (except of the subsidiaries
/ associates) at fair value. Where the company's
management has elected to present fair value
gains and losses on equity investments in other
comprehensive income, there is no subsequent
reclassification of fair value gains and losses to
profit and loss.

Impairment losses (and reversal of impairment
losses) on equity investments measured at FVTOCI
are not reported separately.

Where the Company elects to measure fair value
through profit or loss, changes in the fair value
of such financial assets are recognised in the
statement of profit and loss.

Investment in subsidiaries / associates

I nvestment in subsidiaries / associates are
measured at cost less provision for impairment.

iii) Impairment of financial assets

The company assesses on a forward looking
basis the expected credit losses associated with
its assets carried at amortised cost and FVTOCI
debt instruments. The impairment methodology
applied depends on whether there has been
significant increase in credit risk. Note 30 details
how the company determines whether there has
been a significant increase in credit risk.

For trade receivables, the Company applies the
simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected
credit losses to be recognised from initial
recognition of the receivables.

iv) Derecognition of financial assets

A financial asset is derecognised only when:

a) the Company has transferred the rights to
receive cash flows from the financial asset or

b) the Company retains the contractual rights to
receive the cash flows of the financial asset,
but assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the entity has transferred a financial asset,
the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of
the financial asset. In such cases, the financial
asset is derecognised. Where the entity has not
transferred substantially all risks and rewards of
ownership of the financial asset, the financial
asset is not derecognised.

Where the entity has neither transferred a financial
asset nor retains substantially all risks and rewards
of ownership of the financial asset, the financial
asset is derecognized, if the Company has not
retained control of the financial asset. Where the
company retains control of the financial asset, the
asset is continued to be recognised to the extent
of continuing involvement in the financial asset.

Interest Income:

Interest income from debt instruments is
recognised using the effective interest rate
method. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
through the expected life of the financial asset
to the gross carrying value of a financial asset.
While calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms of the
financial instrument (for example, prepayment,
extension, call and similar options), but does not
consider the expected credit losses.

x) Financial Liabilities:

Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of costs
of an asset is included under 'Finance costs'.

The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including
all fees and points paid or received that form an
integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the
expected life of the financial liability.

All financial liabilities are subsequently measured at
amortised cost using the effective interest method or
at FVTPL.

The Company derecognizes financial liabilities
when, and only when, the Company's obligations are
discharged, cancelled or have expired.

Borrowings are removed from the balance sheet when
the obligation specified in the contract is discharged,
cancelled or expired. The difference between the
carrying amount of a financial liability that has been
extinguished or transferred to another party and the
consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in profit
and loss.

Borrowings are classified as current liabilities unless
the Company has an unconditional right to defer
settlement of the liability for at least 12 months after
the reporting period.

y) Borrowing costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or
production of a qualifying asset are capitalized during
the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying
assets are assets that necessarily take a substantial
period of time to get ready for their intended use or
sale. Other borrowing costs are expensed in the period
in which they are incurred.

z) Current and Non-current classification

The Company presents assets and liabilities
in the balance sheet based on current / non¬
current classification.

Cash or cash equivalent is treated as current,
unless restricted from being exchanged or used to
settle a liability for at least twelve months after the
reporting period.

In respect of other assets, it is treated as current when
it is:

^ expected to be realised or intended to be sold or
consumed in the normal operating cycle

^ held primarily for the purpose of trading
^ expected to be realised within twelve months
after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

^ it is expected to be settled in the normal
operating cycle

^ it is held primarily for the purpose of trading
^ it is due to be settled within twelve months after
the reporting period, or

^ there is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

The operating cycle is the time between the acquisition
of assets for processing and their realization in cash
and cash equivalents. The Company has identified
twelve months as its operating cycle.

aa) Earnings Per Share (EPS):

Basic earnings per share is computed by dividing the
'profit attributable to ordinary equity shareholders'
by the weighted average number of equity shares
outstanding during the year. Diluted earnings per share
is computed by dividing the profit after tax as adjusted
for dividend, interest and other charges to expense or
income relating to the dilutive potential equity shares,
by the weighted average number of equity shares
considered for deriving basic earnings per share and
the weighted average number of equity shares which
could have been issued on the conversion of all dilutive
potential equity shares.

ab) Treasury Shares

The Company has created an ESOP Trust (the 'Trust') for
providing share-based payment to its employees. The
Company uses the Trust as a vehicle for distributing
shares to employees under the Employee Stock Option
Scheme. The Trust purchases shares of the Company
from the market for giving shares to employees. The
Company treats Trust as its extension and shares held
by the Trust are treated as treasury shares.

Own equity instruments that are re-acquired (treasury
shares) are recognised at cost and deducted from
other equity. As and when treasury shares are
transferred to employees on exercise after satisfaction
of the vesting conditions, the balance lying in “Treasury
share reserve" is transferred to “Retained earnings".

ac) Recent pronouncements

Ministry of Corporate Affairs (“MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time.

The Company has applied the following Ind AS
pronouncements pursuant to issuance of the
Companies (Indian Accounting Standards) Second
Amendment Rules, 2025 with effect from 1^st April 2025:

(i) I nd AS 7 - Statement of Cash Flows and Ind AS
107 - Financial Instruments: Disclosures: The
amendment requires disclosure of the effects
of supplier finance arrangements on the
Company's liabilities, cash flows and exposure
to liquidity risk. The company has assessed the
impact of such arrangements on the standalone
Financial Statements and has provided requisite
disclosures in accordance with the amendments.
These amendments do no have any other impact
on the Standalone Financial Statements.

(ii) Ind AS 1 - Presentation of Financial Statements: The
amendments primarily impacts classification of
liabilities. In accordance with the amendments,
the requirement of classification of a liability as
non-current based on the existence of a right
to defer settlement for at least 12 months after
the reporting date has been revised to require
that such right must exist, with substance, at the
end of the reporting period. The amendments
also require assessment of compliance with
covenants for the purpose of classification of
liabilities, along with enhanced disclosures. The
Company has assessed the impact of these
amendments and has applied the revised
requirements for classification of liabilities as
current or non-current including compliance with
covenants, where applicable. These amendments
do not have any other impact on the Standalone
Financial Statements.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values to be disclosed in the
financial instruments that are recognised and measured at fair value and that are measured at amortised cost. To
provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into the three levels prescribed under the accounting standard. An explanation of each level
follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the
stock exchanges are valued using the closing price as at the end of the reporting period. The mutual funds are valued
using the closing NAV.

Level 2: 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 and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities, preference shares and other non current investments included
in level 3.

The company's policy is to recognise transfers in and transfers out of fair value hierarchy levels as at the end of the
reporting period.

During the reporting period, there are no transfers among the three levels.

(ii) Valuation technique used to determine fair value (Level 2)

Specific valuation techniques used to value financial instruments include:

^ the use of quoted market prices or dealer quotes for similar instruments

^ the fair value of interest rate swaps is calculated as the present value of estimated cash flows based on
observable yield curves.

^ the fair value of forward exchange contract and principal only swap is determined using forward exchange
rate at the balance sheet date.

^ the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial
assets and liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for preference shares and other debt instruments are calculated based on cash flows discounted
using effective interest rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of
unobservable inputs, including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a effective interest rate. They are
classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own
credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities for:

a) all non-derivative financial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for
an understanding of the timing of the cash flows.

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated
financial instruments and the impact on other components of equity arises from foreign forward exchange
contracts designated as cash flow hedges.

ii) Interest rate risk

For short term borrowings, interest rates are based on central bank approved benchmark rates plus margin.
Whenever the Company resorts to short term borrowings through Commercial Paper, the rate of interest is fixed
in advance. In respect of long term foreign currency borrowings, the interest rates are covered through interest
rate swaps (IRS)

iii) Price risk

The company's exposure to equity securities price risk arises from investments held by the Company and
classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. To manage
its price risk from investments in equity securities, the Company diversifies its portfolio. The impact of the changes
in price risk is not material.

31 Capital Management
(a) Risk management

The Company's objectives when managing capital are to

^ safeguard our ability to continue as a going concern, so that we can continue to provide returns for
shareholders and benefits for other stakeholders, and

^ maintain an optimal capital structure to reduce the cost of capital.

I n order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total 'equity' (as shown in the balance sheet).
The company's strategy is to maintain an optimum gearing ratio. The gearing ratios were as follows:

(c) Issuance of 6% Cumulative Non-Convertible redeemable preference shares of L 10/- each
(NCRPS)

During the year, the Company issued 6% NCRPS aggregating to 1900.35 crores, redeemable at par after 12 months
from the date of allotment. The issuance is part of the Company’s capital management framework to optimise capital
structure and maintain financial flexibility .

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value
of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period)
has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(ii) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets
underperform this yield, this will create a deficit.

Changes in bond: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an
yield increase in the value of the plans' bond holdings.

Inflation risks: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.
Life expectancy: The pension obligations are to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the plans' liabilities. This is particularly significant where inflationary increases
result in higher sensitivity to changes in life expectancy.

(iii) Defined contribution plans

The Company's contribution to defined contribution plan i.e., provident fund of H 71.24 crores (previous year H 58.79
crores) has been recognised in the Statement of Profit and Loss.

34 TVS Motor Company Employee Stock Option Plan
(a) Employee stock option plan

The Company introduced TVS Motor Company Employee Stock Option Plan to provide equity-based incentives to
the eligible employees of the Company. The plan is administered by the Nomination and Remuneration Committee
of the Company through a Trust. A maximum of 11,87,717 options may be granted under the Plan. Each option granted
under the plan entitles the holder to one equity share of the Company at an exercise price, which is approved by
the Nomination and Remuneration Committee (NRC). As per the plan, NRC grants options to the employees of the
Company. The vesting period of the option is one to ten years from the date of grant. Options granted under the
Scheme can be exercised within a period of four years from the date of vesting. The Nomination and Remuneration
Committee of the Company granted a further 1,27,027 stock options during the year under the TVS Motor Company
Stock Option Plan (ESOP Plan 2024) comprising 28,337 options under Category I and 98,690 options under Category II.

42 Additional Regulatory Disclosures as per Schedule III of Companies Act, 2013

(i) The Title deeds of the immovable properties (other than properties where the Company is the lessee and the
lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

(ii) The Company does not have any investment property.

(iii) As per the Company's accounting policy, Property, Plant and Equipment (including Right of Use Assets) and
Intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the
revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the
Companies Act, is not applicable.

(iv) The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the
related parties (As per Companies Act, 2013), which are repayable on demand or without specifying any terms
or period of repayments.

(v) No proceedings have been initiated or pending against the Company for holding any Benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vi) The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic returns
filed by the Company with such banks are in agreement with the books of accounts of the Company.

(vii) The Company has adhered to debt repayment and interest service obligations on time. "Wilful defaulter" related
disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is
not applicable.

(viii) There are no transactions with the companies whose names were struck off under section 248 of The Companies
Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31^st March 2026.

(ix) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies
have been filed. No registration or satisfaction is pending at the year ended 31^st March 2026.

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies
Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

(xi) a. The Company has issued Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) in

accordance with the applicable provisions of the Companies Act, 2013 and relevant rules thereunder.

b. A scheme of amalgamation of Sundaram Auto Components Limited (a wholly owned subsidiary) with the
company was duly approved by the competent authority in terms of Sections 230 to 232 of the Companies
Act, 2013. Apart from the above, no other scheme of arrangement has been approved during the year."

(xii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

(xiii) 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:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xiv) The Company has not operated in any crypto currency or Virtual Currency transactions

(xv) During the year the Company has not disclosed or surrendered, any income other than the income recognised
in the books of accounts in the tax assessments under Income Tax Act, 1961.

43 Segment Information

The Company identified two verticals viz (a) Automotive Vehicles & Parts and related investments and (b) Investment
held in Financial Services based on operations from which significant risks and rewards are derived. Chief Operating
Decision Maker (CODM) examines the risks and rewards of the entities' performance in the above two verticals and
allocates the resources aligning with the Company's strategy.

The Investments of the Company in TVS Credit Services Limited and TVS Motor Services Limited and other non-strategic
companies categorized as Financial Services.

46. Disclosure Pursuant to Ind As 103 " Business Combination" - Amalgamation of Sundaram
Auto Components Limited with TVS Motor Company Limited

The National Company Law Tribunal, Chennai Bench, has approved the Scheme of Amalgamation of Sundaram Auto
Components Limited ('SACL' or the 'Transferor Company') with TVS Motor Company Limited ('TVSM' or the 'Transferee
Company') vide order dated 6^th May 2026. The appointed date under the Scheme is 1^st April 2025.

During the financial year 2024-25, SACL entered into a Business Transfer Agreement under which its Injection Moulding
and Seating Business was transferred by way of a slump sale, following which SACL discontinued its operations.
Consequently, with the objective of simplifying the group structure and consolidating assets and liabilities, it was
decided to merge SACL with TVSM.

The Merger is accounted for under the Pooling of Interests method in accordance with Appendix C of Ind AS 103
Business Combinations of Entities under Common Control involving the following:

(i) All assets and liabilities have been recorded at their carrying values as appearing in the consolidated financial
statements of the Company.

(ii) The reserves of the SACL have been preserved and recorded by the Company in the same form and at the same
carrying amounts as appearing in the consolidated financial statements prior to the amalgamation. Any surplus
or deficit arising after giving effect to the above adjustments has been transferred to Capital Reserve, which is
disclosed separately with its nature and purpose.

(iii) Inter-company balances between the Company have been cancelled pursuant to the amalgamation.

(iv) Comparative financial information has been restated as if the amalgamation had occurred from the beginning
of the comparative period

The impact of the merger on the previous year included in these standalone results as under:

48 Corporate Social Responsibility

Expenditure incurred on Corporate Social Responsibility (CSR) activities:

(a) Gross amount required to be spent during the year is H55.99 crores (Previous year H39.55 crores)

(b) Amount spent during the year:

49 The Government of India notified on November 21, 2025, the four Labour Codes - the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions
Code, 2020 - consolidating existing labour laws. The entity has assessed the incremental impact of these changes
on the basis consistent with the Labour Codes, draft rules, FAQs and legal opinion. Considering the regulatory driven
non-recurring nature, the past period employee benefit liability has been disclosed under Exceptional Items in the
Statement of Profit and Loss for the year ended March 31, 2026.

The Government of India is in the process of notifying related rules to the New Labour Codes and the impact of these
will be evaluated and appropriately accounted as and when notified.

50 Previous Year's Figures have been regrouped wherever necessary to conform to the
Current Year's classification.