TUBE INVESTMENTS Notes to Accounts

1. Corporate Information

Tube Investments of India Limited is a Public Limited Company domiciled
in India and listed on BSE and National Stock Exchange. The Company has
manufacturing locations across the Country and has three product
segments namely, Cycles and Accessories, Engineering and Metal Formed
Products.

2. Basis of Preparation

The financial statements of the Company are prepared under the
historical cost convention, on an accrual basis, in accordance with the
Generally Accepted Accounting Principles in India ("Indian GAAP") to
comply in all material respects with the Accounting Standards specified
under Section 133 of the Companies Act 2013 read with Rule 7 of
Companies (Accounts) Rules, 2014. The accounting policies adopted in
the preparation of the financial statements are consistent with those
followed in the previous year.

3. Segment Information

The Company''''s operations are organised into three major segments -
Cycles and Accessories, Engineering and Metal Formed Products which
comprise the primary basis of segmental information.

The Cycles and Accessories segment comprises bicycles of the Standard
and Special variety including alloy bikes & Speciality performance
bikes and fitness equipment. The Engineering segment consists of cold
rolled steel strips and precision steel tube viz., Cold Drawn Welded
tubes (CDW) and Electric Resistance Welded tubes (ERW). The Metal
Formed Products segment comprises of Automotive and Industrial chains,
fine blanked products, stamped products, roll-formed car doorframes and
cold rolled formed sections for railway wagons and passenger coaches.

Secondary segmental reporting is based on geographical location of
customers and assets.

4. Disclosure in respect of Related Parties pursuant to Accounting
Standard 18

a) List of Related Parties

I. Subsidiary Companies

a. Shanthi Gears Limited

b. Cholamandalam MS General Insurance Company Limited

c. Tl Financial Holdings Limited

d. Tl Tsubamex Private Limited

e. Financiere CIO SAS and its Subsidiaries namely

i. Sedis SAS

ii. Societe De Commercialisation De Composants Industriels - SARL
(S2CI) and

iii. Sedis Co. Ltd.

II. Entity having Significant Influence

Murugappa Holdings Limited

III. Associate Company

Cholamandalam Investment and Finance Company Limited (Subsidiary upto 1
September 2015 and Associate w.e.f. 2 September 2015 - Also refer Note
13) and its Subsidiaries namely

i. Cholamandalam Distribution Services Limited

ii. Cholamandalam Securities Limited

iii. White Data Systems India Private Limited

IV. Joint Venture Company

Cholamandalam MS Risk Services Limited

V Key Management Personnel (KMP)

Mr. L. Ramkumar- Managing Director

Mr. S. Suresh - Company Secretary

Mr. Arjun Ananth - Chief Financial Officer (upto 29 February 2016)

Note:

Related party relationships are as identified by the Management and
relied upon by the auditors.

5. Operating Leases

The Company has Operating Lease agreements for certain office space and
residential accommodation which are generally cancellable in nature. As
per the lease terms, an amount of Rs.16.97 Cr. (Previous Year Rs.14.36
Cr.) has been recognised in the Statement of Profit and Loss.

6. Accounting for Derivatives

Pursuant to the announcement of the Institute of Chartered Accountants
of India (ICAI) in respect of "Accounting for Derivatives", the Company
had opted to follow the hedge accounting principles relating to
derivatives as specified in AS 30 "Financial Instruments, Recognition
and Measurement", issued by the ICAI, from the year ended 31 March
2008.

Consequently, as at 31 March 2016, the Company has recognised a net
Mark to Market (MTM) Loss of Rs.0.87 Cr. (Previous Year Gain Rs.2.01
Cr.) relating to Derivative Contracts entered into to hedge the foreign
currency risk of highly probable forecast transactions that are
designated as effective cash flow hedges, in the Hedge Reserve Account
as part of the Shareholders'''' Funds.

7. Previous Year''''s Figures

The Company has reclassified/regrouped previous year figures to conform
to this year''''s classification.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
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Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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