a) AS - 1 Disclosure of Accounting policies
 
 The accounts are maintained on accrual basis as a going concern.
 
 b) AS - 2 Valuation of Inventories
 
 Inventories are valued in accordance with the method of valuation
 prescribed by The Institute of Chartered Accountants of India at lower
 of weighted average cost or net realisable value.
 
 c) AS - 3 Cash flow statement
 
 Cash flow statement is prepared under Indirect Method and the same is
 annexed.
 
 d) AS - 4 Contingencies and events occurring after the balance sheet
 date
 
 Disclosure of contingencies as required by the Accounting Standard is
 furnished in note no. 9
 
 f) AS - 6 Depreciation accounting
 
 Depreciation has been provided under the straight line method at the
 rates prescribed under Schedule XIV of the Companies Act, 1956 with
 applicable shift allowance. In respect of the assets added/sold during
 the year, pro-rata depreciation has been provided.
 
 Depreciation in respect of computers and vehicles has been provided @
 30% and 18% respectively which are higher than the rate prescribed in
 Schedule XIV of the Companies Act, 1956.
 
 Depreciation in respect of assets acquired during the year whose actual
 cost does not exceed Rs. 5,000/- has been provided at 100%
 
 g) AS - 7 Construction contracts
 
 This accounting standard is not applicable.
 
 h) AS - 8 Research and Development
 
 This accounting standard is withdrawn.
 
 i) AS - 9 Revenue recognition
 
 The income of the Company is derived from sale of gravity and pressure
 die castings, traded goods, net of trade discount and includes realised
 exchange fluctuation gain on exports Rs. 79.70 Lakhs (Last year -
 Rs.322.62 Lakhs). Interest income is recognised on a time proportion
 basis taking into account the amount outstanding and rate applicable.
 
 Dividend from investments is recognised when the company in which they
 are held declares the dividend and when the right to receive is
 established.  The revenue and expenditure are accounted on a going
 concern basis.
 
 j) AS - 10 Accounting for fixed assets
 
 All the fixed assets are valued at cost including expenditure incurred
 in bringing them to usable condition as reduced by Central Value Added
 Tax (CENVAT) credit less depreciation.
 
 k) AS - 11 Accounting for effects in Foreign exchange rates
 
 Foreign currency transactions
 
 Income and expenses in foreign currencies are converted at exchange
 rates prevailing on the date of the transaction. Foreign currency
 monetary assets, liabilities and external commercial borrowings are
 translated at the exchange rate prevailing on the balance sheet date.
 
 a) Derivative instruments:
 
 Derivative contracts are entered into by the company only based on
 underlying transaction. The Company has not entered into any derivative
 contracts of a speculative nature.
 
 b) Currency Swaps:
 
 The Company has entered into three currency swap contracts covering the
 total External Commercial Borrowings - JPY equivalent to USD 22
 Million, with an option to fix the repayment liability of the Company
 in Indian Rupees. ( Outstanding ECB loan at the end of the year is JPY
 equivalent to USD 16.80 Million)
 
 c) Interest Rate Structure (IRS):
 
 The Company has entered into one derivative contract (included in
 currency swaps above) in respect of external commercial borrowings
 amounting to JPY equivalent to USD 10 Million to convert the floating
 interest rate to fixed interest rate.
 
 l) AS - 12 Accounting for Government grants
 
 The Company has not received any grants from the Government.
 
 p) AS - 16 Borrowing costs
 
 The borrowing cost has been treated in accordance with Accounting
 Standard on borrowing cost (AS 16) issued by The Institute of Chartered
 Accountants of India.  During the year, a sum of Rs. 295.78 lakhs (last
 year Rs 310.44 lakhs) being interest on borrowings attributable to
 qualifying assets have been capitalised under the various heads.
 
 q) AS - 17 Segment reporting
 
 The Company operates in only one segment viz., Automotive Components
 and there are no separate reportable segments. As the income from
 traded goods i.e., Rs 204.18 lakhs is less than 10% of total income and
 is also a non - automotive activity, the income therefrom is not
 recognised as a separate segment.
 
 r) AS - 18 Related party disclosure
 
 Disclosures are made as per the requirements of the Standard and
 clarifications issued by The Institute of Chartered Accountants of
 India.
 
 s) AS -19 Accounting of leases
 
 The Company has taken vehicles under operating lease arrangement. The
 lease period is for 60 months.
 
 t) AS - 20 Earnings Per Share (EPS)
 
 Disclosure is made in the Profit and Loss Account as per the
 requirements of the Standard.
 
 u) AS - 21 Consolidated financial statements
 
 Consolidated financial statements of the Company and its subsidiaries
 are enclosed.
 
 v) AS - 22 Accounting for taxes on income
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period.
 
 Deferred tax liability and asset are recognised, subject to the
 consideration of prudence, on timing differences using the tax rates
 substantively enacted on the Balance Sheet date.
 
 w) AS - 23 Accounting for Investments in Associates in Consolidated
 Financial Statements
 
 I) Sundram Non-Conventional Energy Systems Limited, Chennai (SNES) is
 an associate of Anusha Investments Limited, Chennai, which is a wholly
 owned subsidiary of the Company. Hence SNES is an associate of the
 Company.
 
 II) TVS-e Access (India) Limited, Chennai is a subsidiary of TVS
 Investments Limited, Chennai, which is a wholly owned subsidiary of the
 Company. Hence TVS-e Access (India) Limited, Chennai is a subsidiary of
 the Company.  Anusha Investments Limited, Chennai and TVS-e Access
 (India) Limited together hold 33.90% of equity share capital of TVS
 Finance & Services Limited, Chennai (TVS F&S). Hence TVS F & S is an
 associate of the company.
 
 III) TVS Wind Power Limited, Chennai is a subsidiary of TVS Energy
 Limited, Chennai, which is a subsidiary of the TVS Motor Company
 Limited, Chennai.  The Company holds indirectly 44.52% of the equity
 share capital of TVS Wind Power Limited, Hence, TVS Wind Power Limited
 is an associate of the Company,
 
 Accordingly, the financial statements of SNES, TVS Wind Power Limited
 and TVS F&S are considered as associates in the preparation of
 consolidated financial statements of the Company.
 
 x) AS - 24 Discontinuing operations
 
 The Company has not discontinued any operations during the year.
 
 y) AS - 25 Interim Financial Reporting
 
 The Company has elected to publish quarterly financial results which
 were subject to limited review by the statutory auditors.
 
 aa) AS - 27 Financial reporting of interest in joint ventures
 
 The Company has no interest in joint venture.
 
 ab) AS - 28 Impairment of Assets
 
 The carrying amount of the assets net of accumulated depreciation as on
 the balance sheet date is not less than the recoverable amount of those
 assets.