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VST Tillers Tractors Ltd.

BSE: 531266 Sector: Auto
BSE 00:00 | 24 Apr VST Tillers Tractors Ltd
NSE 05:30 | 01 Jan VST Tillers Tractors Ltd
OPEN 930.00
52-Week high 1413.95
52-Week low 601.00
P/E 22.82
Mkt Cap.(Rs cr) 771
Buy Price 885.00
Buy Qty 3.00
Sell Price 892.50
Sell Qty 3.00
OPEN 930.00
CLOSE 950.35
52-Week high 1413.95
52-Week low 601.00
P/E 22.82
Mkt Cap.(Rs cr) 771
Buy Price 885.00
Buy Qty 3.00
Sell Price 892.50
Sell Qty 3.00

VST Tillers Tractors Ltd. (VSTTILLERS) - Director Report

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Company director report

Dear Members

Your Directors have pleasure in presenting the 51st Annual Report of the Company andthe Audited Statement of accounts for the financial year ended March 31 2019.

Period Year 2018-19 Year 2017-18
TOTAL INCOME 65846 80916
TOTAL EXPENSES 58693 65693
TAX 2547 4025
EARNING PER SHARE (Basic and Diluted) 53.32 129.61


India has emerged as the fastest growing major economy in the world and is expected tobe one of the top three economic powers of the world over the next 10-15 years backed byits strong democracy and partnerships. Second Advance Estimates of Gross Domestic Product(GDP) released by the Central Statistics Office (CSO) estimated the growth rate of GDP atconstant (2011-12) market prices for FY 2018-19 at 7.0 per cent.


India's gross domestic product (GDP) is expected to reach US$ 5 trillion by FY25 andachieve upper-middle income status on the back of digitisation globalisation favourabledemographics and reforms.

Agriculture being the primary source of livelihood for about 58 per cent of India'spopulation Government of India has introduced several projects to assist the agriculturesector. They are Pradhanmantri Gram Sinchai Yojana: Scheme aims to irrigate the field ofevery farmer and improve water use efficiently to achieve the motto ‘Per Drop MoreCrop'. Government of India is also aiming to double farmers' income by 2022 these augurwell for the farm mechanisation industry.


The Year under review was impacted due to various factors such as Monsoon failure incertain areas nonavailability of funds with various State Govts issues w.r.t subsidyallocation in key states and implementation of direct billing of products from Company tosubsidy customers. Your company managed trade receivables efficiently and consequentlythe receivables were reduced from Rs.186 Crs as of March 31st 2018 to Rs 96 Crs as ofMarch 31st 2019.


During the year 2018-19 the Power Tiller industry witnessed around 7.5 % de-growth.This sector relies heavily on Government subsidies and any delay in implementing schemesin various states leads to demand distortions. The number of Power Tillers sold during theyear was 22547 units as against the previous year sale of 30143 units our market sharebeing reduced to 44% in the current year.

Our business continues to grow in the new product segments such as Rice Transplanterwhich grew by 157 % and the Power Reaper segment which grew by 26 %.


In the financial year 2018-19 the total tractor industry in India grew by 6.7%however your company (primarily in the compact category) registered a degrowth of 28%.The number of Tractors sold was 8198 Nos during the year as against 11367 tractors in2017-18. There has been a degrowth in the 0-20HP segment of compact tractor industry byabout 2.7% as this segment of the industry was affected due to drought in MaharashtraGujarat (Saurashtra region) and delay in subsidy in certain states. The industry degrowthin the areas where VST products were popular impacted our volumes leading to an overalldrop in market share to 8.3% in the compact segment category.

The Custom Hire & Service Centres that have been under the VST umbrella under thescheme launched by the Government of Karnataka are running satisfactorily.


Your company continues to be the market leader in power tillers and will now focus onintroduction of new products in this segment. Your company believes that the power tillerindustry would continue to grow considering the need for affordable mechanization forsmall and marginal farmers. The key driver for growth would be subsidy and retail financeavailability and for this your company has tied up with major banks and NBFCs and willcontinue to work with them to arrange funding for this segment of customers. The Companywill simultaneously continue to expand its dealer network across the country. Your companyhas undertaken to invest Rs.210 crores on long term capex plan for infrastructure productupgradation and new product development. During the year 2018-19 your company launchedthree higher HP Tractor Models i.e. 45 & 50 HP Viraaj and 47HP VST Shakti Branson.Simultaneously your company will ramp up the volumes in the higher HP segment in the newfinancial year. Your company will also launch new models in the compact segment.


The performance of the Component Division Mysore recorded a marginal growth indomestic business however export business was lower compared to the earlier. The turnoverfor 201819 was Rs. 7.88 crores as compared to Rs.8.30 crores for 2017-18.

Your company has invested Rs. 24 Crs to modernise this facility and plans are underimplementation to ensure profitable growth of this business in the medium and long term.


Majority portion of Power Tillers and Compact Tractors in some states are sold undergovernment subsidy schemes. In case of reduction in subsidy allocation the demand of theseproducts will be affected. Most of the State Governments are switching over to DBT (DirectBenefit Transfer) scheme for subsidy which would mean the farmer has to pay 100% to buythe product. This scheme may affect the liquidity of the farmers although they will getthe subsidy portion later. To mitigate this situation your Company has made thearrangement for retail finance support to farmers.

Competition in power tillers and compact segment tractors requires your company to comeout with suitable variants to counter the same.


There is a need to mechanize agriculture due to unavailability & high cost oflabour. Your company is offering solutions to the small and marginal farmers through powertillers and compact tractors optimized with various applications. Your company is also inthe process of launching complete range of higher HP Agriculture tractors.

Dependency on favourable Monsoon and delay in release of Subsidy by the Government willbe the key threat for the business of the Company. Unstable prices for farm produce andunforeseen natural calamities in the recent past have impacted small and marginal farmerssince they suffer the most during such situations.


With prediction of normal monsoon stable government and continued focus on farmmechanisation by the Government we expect our revenue growth will be par with the overallindustry growth.

In fiscal year 2019 loan waivers have been announced by newly elected governments infew states such as Karnataka Madhya Pradesh Rajasthan and Chattisgarh which constituteto farmers to tide over losses incurred due to uneven monsoon and drought conditions. Thiswill boost the morale of the farmer and may encourage them to purchase Tractor and Powertillers.

Scarcity of farm labour and increase in farm mechanization may spur the demand forPower Tillers and Tractors. The Company has been expanding its product portfolio keepingin mind the growth potential of the farm equipment industry including localization of 47HP vSt Shakti Branson Model to make it economical for Indian market. The Company hasintroduced specific model of spare parts distribution and with increase in farm equipmentvolume increase is also expected in the spare parts business.

Your Company is committed to focus on export sales which includes introduction of newmodels and expansion of export network. Your Company continues its focus on costoptimization productivity improvement supply chain management and value engineering.


Your Company deals with single segment only i.e. "Manufacturing of AgriculturalMachineries".


"The Board of Directors of your company is pleased to recommend a dividend ofRs.15/- per equity share of the face value of Rs. 10 each i.e. @ 150% payable to thoseShareholders whose names appear in the Register of Members as on the Book Closure / RecordDate. The Dividend will be disbursed on or after 12th August 2019 if approved by theshareholder at the 51st AGM. The total outflow will be Rs 1562 lakhs including thedividend distribution tax of Rs. 266 lakhs.


"The Board of Directors of your company has decided not to transfer any amount tothe Reserves for the year under review."


The Company continues to sustain its commitment to the highest levels of quality. Theyear under reference the Company successfully completed the annual ISO surveillance auditand retained the ISO certification for ISO 9001:2015


We are pleased to inform you that your Company has received following awards by ITOTY.

Power tiller of the year- 135 DI ultra model.

Best Tractor under 20 HP- MT 180 DI model


Ratio 2018-19 2017-18 Explanation
Debtors Turnover Ratio 6.47 4.10 Outstanding has come down due to implementation of strict credit policy
Inventory Turnover Ratio 5.04 9.75 Buildup of inventory at the year end was due to lower off take and weak market conditions
Interest Coverage Ratio 39.87 97.30 Lower turnover and profitability during the year has resulted in a lower interest coverage ratio
Current ratio 4.31 3.45 Better working capital management has resulted in improved current ratio
Gross Profit ratio 11% 19% Lower margins on account of reduction in sales has resulted in lower gross profit percentage on turnover
Net Profit ratio 7% 14% Lower margins on account of reduction in sales has resulted in lower net profit percentage on turnover


The changes in return on net worth is mainly due to lower profit for the year underreference.


In accordance with the provisions of the Companies Act 2013 Mr. V V PravindraDirector and Mr. V.P. Mahendra Vice Chairman & Managing Director will retire at theensuing AGM and are eligible for reappointment. However Mr. V.P. Mahendra was reappointedby the shareholders of the Company through postal ballot as Vice Chairman & ManagingDirector for two years effective from 20/02/2019.

Mr. VT. Ravindra was appointed by the shareholders as Executive Director of the Companyfor five years effective 11/05/2018. Mr. VS. Arun was appointed as non-executive directorof the Company effective 11/05/2018.

Mr. Bijanki Jagannath was appointed by the Board of Directors of the Company as anAdditional Director of the Company effective 27/12/2018. His appointment as Non-ExecutiveIndependent Director was approved by the members through postal ballot for three yearseffective 27/12/2018

During the year under review special resolutions through postal ballot were passed forcontinuation of Directorship of Mr.V.K. Surendra Mr. R.Subramanian and Mr. BijankiJagannath Non-Executive Directors who had attained the age over 75 years as perRegulation 17(1A) of SEBI(LODR) Amendment Regulation.

During the year no non-executive director had any pecuniary relationship ortransactions with the Company other than the sitting fees and reimbursement of expensesincurred by them for attending meetings of the Company.

Mr. R. Subramanian Mr. M.K. Bannerjee & Mr. K M Pai will be reappointed asIndependent Directors after completion of their 1st term and same is forming part of theAGM Notice. The reappointment of Independent directors were made on the basis ofrequirement of their services and based on recommendation of Nomination & RemunerationCommittee and performance evaluation by the Board.

No Director has resigned during the year 2018-19.


The following persons are Key Managerial Personnel (KMP) of the Company under section203 of the Companies Act 2013. During the year 2018-19

1. Mr. V.P. Mahendra - Vice Chairman & Managing Director

2. Mr. P.M.Keshava - Chief Financial Officer

3. Mr. Chinmaya Khatua - Company Secretary

Mr. K.U. Subbaiah resigned from the post of CEO w.e.f 1st January 2019 and Mr. AntonyCherukara was appointed by the Board of Directors as CEO and KMP w.e.f 25th April 2019.


The Company strives to ensure good in Corporate Governance and levels of transparencywith all the provisions of SEBI (Listing Obligation and Disclosure Requirement)Regulation 2015. A certificate from the Auditors to this effect forms part of CorporateGovernance Report.

Compliance reports in respect of all laws applicable to the Company have been reviewedby the Board of Directors.


Pursuant to Section 134(3) (c) of the Companies Act 2013 your Directors to the bestof their knowledge and belief and according to the information and explanations obtainedby them make the following statement:

(a) That in the preparation of the annual accounts the applicable accounting standardshad been followed along with proper explanation relating to material departures;

(b) That the directors have selected such accounting policies and applied themconsistently and made judgements and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the company at the end of thefinancial year and of the profit and loss of the company for that period;

(c) That proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

(d) That the annual accounts have been prepared on a going concern basis;

(e) That the internal financial controls to be followed by the company have been laiddown and that such internal financial controls are adequate and were operatingeffectively.

(f) That proper systems to ensure compliance with the provisions of all applicable lawshave been devised and that such systems were adequate and operating effectively.

Based on the framework of internal financial controls and compliance systemsestablished and maintained by the Company the work performed by the internal statutoryand secretarial auditors including the audit of internal financial controls over financialreporting by the Internal Auditors and the reviews performed by management and therelevant board committees including the audit committee the Board is of the opinion thatthe Company's internal financial controls were adequate and effective during FY 2019.


M/s. K.S. Rao & Co Chartered Accountants (Firm Regn No. 003109S) were appointed asAuditors of the Company for five financial years w.e.f FY 2016-17 at the 48th AnnualGeneral Meeting of the Company.


Your Directors had on the recommendation of the Audit Committee appointed M/s. RaoMurthy & Associates Cost Accountants to audit the cost records of the Company for thefinancial year 2019-20 on a remuneration of Rs. 250000/- (Exclusive of applicable taxes)plus out of pocket expenses. As required under the Companies Act 2013 the remunerationpayable to the cost auditor is required to be placed before the Members in a generalmeeting for their approval. Accordingly a Resolution seeking Member's approval for theremuneration payable to M/s. Rao Murthy & Associates. Cost Auditors is included inthe Notice of the Annual General Meeting.


M/s.Brahmayya & Co Chartered Accountant were appointed as Internal Auditors undersection 138 of the Companies Act 2013 for the financial year 2018-19.


Pursuant to the provisions of Section 204 of the Companies Act 2013 and read withRules made thereunder the Board had appointed Thirupal Gorige & Associates LLPPractising Company Secretaries to undertake the Secretarial Audit of the Company for thefinancial year 2018-19. The Secretarial Audit Report is enclosed herewith as Annexure-4.


As required by provisions of section 197 of the Companies Act 2013 read with Rule 5(2)and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014. The salary details of designated employees are given in Annexure-1.


Information under Section 134 Companies Act 2013 read with rule 8 (3) of the Companies(Accounts) Rules 2014 is enclosed as Annexure-2.


Your Company has not accepted any deposits within the meaning of Chapter- V of theCompanies Act 2013 and rules made thereunder.


The Company has put in place adequate internal financial controls over financialreporting Systems commensurate to the nature of its business and complexity of itsoperations. These are regularly tested for their effectiveness by Statutory as well asInternal Auditors.

The Company periodically conducts physical verification of inventory fixed assets andcash on hand and matches them with the books of account. Explanations are sought for anyvariance noticed from the respective functional heads.

The Significant observations made by the Auditors and follow up actions there onreported to the Audit Committee. The Audit Committee reviews the adequacy andeffectiveness of the Company's Internal Control Environment and monitors theimplementation of the Audit recommendations.


Industrial relations have been cordial at the Bengaluru Mysore Malur and Hosur plantsduring the year.

There were 724 Nos. of permanent employees on roll as on 31st March 2019.


VS.T. TILLERS TRACTORS LIMTED is a safe work place and the Safety & Health of ouremployees as per the requirement of the Factories Act are ensured . Our motto is"Zero Miss Accident". Our commitment is to protect the environment as per thepolicy.


Statements in this release that are "forward-looking statements" are based oncurrent expectations and assumptions that are subject to risks and uncertainties. Actualresults could differ materially from those either expressed or implied due to factors suchas Raw material prices Government policies Competition tax regime market acceptance ofnew products and services continued acceptance of existing products and services changesin licensing programs product price discounts delays in product development and relatedproduct release schedules sales and vendor channel disruption.

All information in this release is as of June 04 2019 The Company undertakes no dutyto update any forward-looking statement to conform the statement to actual results orchanges in the company's expectations.


Your Company's operations are supported by a full fledged Data Centre. Your company hasa well planned Business Continuity Plan Set-up for all critical applications with nearreal-time data replication.

The delivery centers meet the Information Security Management System and CIA(Confidentiality Integrity and Availability) Standards. To cater to the ever-changingcustomer needs the IT infrastructure is being constantly upgraded with new / enhancedfeatures to facilitate smooth functioning of operations and deliver customer satisfaction.We are using industry best standard mailing solutions with compliance and availability ofmails which controls various spam mails.

The Company has implemented new ERP system (SAP) during the year 2019-20 to furtherstrengthen the internal control system of the Company. Along with 24*7 availability ofcritical application and standard business analytical tools.


Five meetings of the Board of Directors were held during the year. For further detailsplease refer report on Corporate Governance of this Annual Report.


The Company has received declarations from Independent directors as mentioned insub-section (6) of section 149 of the Companies Act 2013 Schedule- IV of the Act andrelevant provision of SEBI (LODR) Regulations 2015.


The Company has constituted Audit Committee CSR Committee Nomination &Remuneration Committee Stakeholders Relationship Committee and Risk

Management Committee. The details of the Committees are mentioned in CorporateGovernance Report.


The purpose of this policy is to provide a framework to promote responsible and securewhistle blowing. It is to protect employees wishing to raise a concern about seriousirregularities within the Company.

The Company has vigil mechanism cum whistle blower policy to deal with instance offraud and mismanagement if any. The details of the vigil mechanism are explained in theCorporate Governance Report and also posted on the website of the Company.


There was no qualification reservation or adverse remark or disclaimer from StatutoryAuditors.

There was no fraud reported by the auditors under section 143 (12) of the CompaniesAct 2013 other than those which are reportable to the Central Government.

The Secretarial Auditors have made the following observation.

Composition of board of directors: In terms of regulation 17(1) of LODR Regulationsduring period between 11th May 2018 to 27th December 2018 as regular non-executivechairperson was promoter the board was required to consist of half of the boardindependent directors. For this non-compliance the stock exchanges imposed a fine ofrupees 1074100 each. The company paid the same and sought for waiver of the same fromstock exchange.

Management Response:

Finding a suitable person with respect to our nature of business had taken time andsame was compiled with by appointing a suitable person as Independent Director on 27thDecember 2018. The management is confident of receiving waiver of penalty sought from theStock Exchanges.


The Company has made investment during the year 2018-19. The investments and Loanformed part of the notes to the financial statements provided in this Annual Report. Thecompany has not given any Loan or Guarantee during the year 2018-19.


All related party transactions that are entered into during the financial year were onan arm's length basis. There are no materially significant related party transactions madeby the company with Promoters Directors Key Managerial Personnel or other designatedpersons which may have a potential conflict with the interest of the Company at large.

All Related Party Transactions are placed before the Audit Committee and also beforethe Board for approval. Prior omnibus approval of the Audit Committee was obtained for thetransactions which are of a foreseen and repetitive nature. The transactions entered intopursuant to the omnibus approval so granted are audited and a statement giving details ofall related party transactions is placed before the Audit Committee and the Board ofDirectors for their information and approval. The policy on dealing with Related PartyTransactions as approved by the Board can be accessed at

There were no transactions during the year which would require to be reported in FormAOC-2.


There are no material changes and commitments affecting the financial position of thecompany which have occurred between end of the financial year of the company to which thefinancial statements relate and the date of the report;


The Company has a risk management policy. The risk pertaining to business of theCompany are discussed at the Risk Management Committee Audit Committee and at the BoardMeetings on regular basis.

There are no risks which in the opinion of the Board threaten the existence of theCompany. However some of the risks which may pose challenges are set out in theManagement Discussion and Analysis which forms a part of this report.


Mr. M.K. Bannerjee Chairman Mr. V. K. Surendra Member Mr. K.M. Pai Member Mr. VP.Mahendra Member.

The Risk Management Policy as approved by the Board is uploaded on the Company'swebsite During the year under review thecommittee met on 10/05/2018 & 18/01/2019 attended by all the members.


The Company has formed CSR policy and Committee details as required by the Act areavailable in Company website i.e. TheCompany has spent Rs.165 lakhs in CSR activities during the financial year 2018-19.


The Board works with the nomination and remuneration committee to lay down theevaluation criteria for the performance of executive / non-executive / independentdirectors through a peer-evaluation excluding the director being evaluated. The evaluationof all the Directors Committees and the Board as a whole was conducted based on thecriteria and frame work adopted by the Board.

The above criteria are based on the Guidance Note on Board Evaluation issued by theSecurities and Exchange Board of India on January 5 2017.

The Board and the Nomination and Remuneration Committee reviewed the performance ofindividual directors on the basis of criteria such as the contribution of the individualdirector to the board and committee meetings like preparedness on the issues to bediscussed meaningful and constructive contribution and inputs in meetings etc.

There is no change in nature of the business during the year.

Details of subsidiary Associate or joint Venture Company.

The company has no subsidiary company.


There are no significant material orders passed by the Regulators / Courts which wouldimpact the going concern status of the Company and its future operations.

The ratio of the remuneration of each Director and KMP to the median remuneration ofthe employees of the company for the financial year as follows:

Sl. No. Name Designation Salary 2018-19 (in Rs) Salary 2017-18 (in Rs) Increase in salary Ratio/Times per Median of employee remuneration
1 Mr.V.P. Mahendra Vice Chairman & Managing Director 10433291 7710739 2722552 22.50
2 Mr. V.T. Ravindra Whole Time Director 5823643 - NA 12.55
3 Mr. P M Keshava Chief Financial Officer 5323555 3538136 1785419 11.26
4 Mr. Chinmaya Khatua Company Secretary 1925808 1537589 382194 4.15

Note: 1) Leave encashment & Gratuity included in the salary (2018-19) of Mr.Keshava

2) Leave encashment included in the salary (2018-19) of Mr V P Mahendra &Mr.Chinmaya.

The Company's PAT has decreased from Rs. 11195 lakhs to Rs. 4552 lakhs. The increase inKMP remuneration is in line with the current market scenario and with Company's policy.However salaries of Vice Chairman & Managing Director and Executive Director wereapproved by the shareholders.

The Company has given about 10% average increase in salaries to the employees keepingin view the overall industry standard and interest of the employees. The unionizedemployees of the Company are eligible for salary increment as per the terms and conditionsof their wage settlement. There is no exceptional circumstances of increase in themanagerial remuneration.

The Company has 724 Nos permanent employees on roll as on 31st March 2019. The Companyfixes salary of the employees on the basis of Remuneration Policy of the Company. Theaverage increase in median remuneration of employees during the year 2018-19 is 14%.

Payment of Commission to Managing Director and Whole time Director.

The Managing Director and whole time director are being paid commission on net profitof the Company as approved by the shareholders.

Name Designation Commission
V.P. Mahendra Vice Chairman & Managing Director One percent on the net profit of the Company subject to a maximum of one and half times of annual basic salary drawn
V T Ravindra Executive Director One percent on the net profit of the Company subject to a maximum of one and half times of annual basic salary drawn

Mr K.U.Subbaiah CEO received remuneration in excess of the highest paid directorduring the year considering his salary for the full year the details are given in PageNo.13.


Date Paid up Capital (in Rs) Closing Market Price per shares EPS PE Ratio Market Capitalisation (Rs. in crore)
31.03.2018 86395280 2511.75 129.61 19.38 2170
31.03.2019 86395280 1317.20 53.32 24.70 1138
Increase/Decrease NIL 1194.55 -76.31 5.32 -1032
% Increase/Decrease NIL 47.55 58.87 27.45 -47.55
No of issue of shares during the year






Internal Complaint Committee under Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013.

The Company has formed Internal Complaint Committee under Sexual Harassment of Women atWorkplace (Prevention Prohibition and Redressal) Act 2013 and no complaint was receivedduring the year 2018-19.


No disclosure or reporting is required with respect to the following items as therewere no transactions during the year under review:

• The issue of equity shares with differential rights as to dividend voting orotherwise.

• The issue of shares to the employees of the company under any scheme (sweatequity or stock options). There is no change in the Share Capital Structure during theyear under review.

• The company does not have any scheme or provision of money for the purchase ofits own shares by employees or by trustees for the benefits of employees.

Extract of Annual Return

Annual Return of the Company is available in Company website i.e. www.vsttillers.comextract of Annual Return is annexed herewith as Annexure 5 to this report.

Secretarial Standards:

During the year under review the Company was in compliance with the SecretarialStandards. i.e. SS-1 SS-2 and SS-3 relating to "Meetings of the Board ofDirectors" "General Meetings" and dividend respectively.

Investor Education And Protection Fund

Company has transferred Rs.586988/- unpaid and unclaimed dividend to InvestorEducation and Protection Fund and corresponding shares of 913 Nos to IEPF Authority as perIEPF Rules. As per said rule any benefits such as dividend shall be transferred to IEPFwith respect to shares transferred to IEPF. The details of such Dividends and shares areavailable in Company website at Mr. Chinmaya Khatua has been appointedas nodal officer for IEPF Regulations.

The details of unclaimed dividends as on 31/03/2019 is given below:

Sl. No. Financial Year Unclaimed Dividend Amount (in Rs) No of Shares Due date of Transfer to IEPF
1 2011-12 591525.00 65725 13/09/2019
2 2012-13 769518.00 85502 14/09/2020
3 2013-14 1139490.00 75966 14/09/2021
4 2014-15 1055895.00 70393 11/09/2022
5 2015-16 1027275.00 68485 28/04/2023
6 2016-17 1135470.00 75698 11/09/2024
7 2017-18 2490900.00 49818 11/09/2025

Details of Nodal officer:

Name- Mr. Chinmaya Khatua Company Secretary Email- Phone No-080-67141111

The above details are available in Company website:


The Directors wish to convey their gratitude for the faith reposed in your Company byemployees dealers vendors Bankers and the customers at large.

Place: Bengaluru V. K. Surendra
Date : 4th June 2019 Chairman

Information as per Rule 5 of Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014

Name Designation Remuneration for year 2018-19 (in Rs) Remuneration for year 2017-18 (in Rs) Qualification Date of Commencement of employment at VST Age Last employ ment % of equity share held Whether relative of Director or Manager
V.P. Mahendra Vice Chairman & Managing Director 10433291 7710739 BE (Electrical) 20.02.1984 77 NA 7.3% No
V T Ravindra Executive Director 5823643 NA Graduate PGDM 27.05.2016 50 NA 0.31% No
K U Subbaiah CEO 8289933 12242575 BE (Mechanical) 17.08.2015 60 Pricol Ltd Nil No

Note: 1. All the appointments are permanent in nature & as per the service contractof the Company and can be terminated by giving notice by either party.

2. Mr. V.P. Mahendra & Mr.V.T. Ravindra comes under promoter group.

3. Mr. K U Subbaiah has resigned from post of CEO w.e.f. 1st January 2019.

The information required under Rule 5 of The Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is provided in the Annexure (s) forming part of theAnnual Report. In terms of the first proviso to Section 136 of the Companies Act 2013the Report and Accounts are being sent to the members excluding the aforesaid fullAnnexure (s). Any member interested in obtaining the same may write to the CompanySecretary at and same shall be available at the Registered Officeof the Company for inspection by Members.

Sitting fees paid to Non-Executive / Independent Directors during the year 2018-19 :

Name of the Director Category Sitting Fees (in Rs)
Mr. V. K. Surendra Chairman 510000
Mr. R. Subramanian Independent Director 580000
Mr. M. K. Bannerjee Independent Director 850000
Mr. K.M. Pai Independent Director 1410000
Ms. Siva Kameswari Vissa Independent Director 480000
Mr.Bijanki Jagannath Independent Director 100000
Mr. V.V. Pravindra Non-Executive Director 180000
Mr. V.T.Ravindra* Executive Director 40000
Mr. V S Arun* Non-Executive Director 150000

* Mr. V.T. Ravindra appointed as Executive Director and Mr. VS. Arun appointed asnon-executive director with effect from 11th May 2018.


1. Conservation of energy :

a. Malur Plant:

i. Installed 250 KW of Solar Power Opex model and on Nett metering.

ii. Installed Water treatment system which allows us to re-use 64 to 70% of waterrequirement per day.


i. Installed 450 KW of Solar Power Opex model and on Nett metering.

ii. Installed Water treatment system which allows us to re-use 60 to 65% of waterrequirement per day.

2. Research and Development (R&D) :


1) Higher HP Tractors 39HP 45HP & 49HP:

The Product Portfolio has been expanded with the introduction of Higher HP series ofTractors. These tractors are designed and developed Indigenously and are released toMarket.

2) 47 HP VST Branson Tractors (Premium Segment):

Premium segment tractor introduced to the market with Technology Transfer Agreementwith M/s.Kukje Machinery Korea.


New variant of single cylinder (17 HP) 2W drive tractor has been conceptualized andreleased to Market.


New series of 30HP Tractor is under development.


a. New concept of Power steering with priority valve was conceptualized and validatedsuccessfully for 18 and 22 HP models of Tractors and released to Export Market.

b. 22HP Tractor with 8+2 transmission and with oil immersed brake released to Marketand has shown good market acceptability.

c. Gear Type Rotavator designed developed and released to Market which can be usedalong with our existing series of Tractors.


1) Higher HP Power Tiller

a. Higher HP Power Tiller Development is in progress and will be launched in the comingfinancial year.

2) Self Propelled Reaper:

a. Productionized.

b. New lower cost Reaper is under development.


a. 18.5 HP 22 HP & 24 HP Engines are upgraded and Approved for Euro 5 EmissionNorms.

b. COP approval of all the Engines obtained from M/s. ARAI.


a. New R&D Engine testing facility for Testing engines to Stage 5 EmissionStandards with Base Emission set up is being established.

b. New PLM implementation in Design center has been completed this will enhance thecapability of design of New variants of existing products as well as New Products.

c. FEA analysis and Adams (for load extraction with linkages) Introduced for validationof design before release.


a. New dynamometers facility will improve the optimization capabilities as well as Newproduct quality.

b. New PLM software will systematize the design and drawing release process which willreduce the drawing release lead time as well as streamline the release process therebyprotecting the intellectual property.


Validation of New attachments mounted on our Tractors and Tillers has been taken up ona continual basis like Tractor mounted combine harvester Laser leveler Trenchers etc. onall models of tractors etc. which will enable the Company to provide total crop solutionsto the farming community.



i. New Technology based Electronic Hitch control system for Tractor.

ii. Transient dynamometer planned to test higher HP engines to Transient cycle.

iii. Introduction New Variants in the Higher HP Tractor segment with additionalfeatures.

b. Procurement of new Software for R & D

i. Additional licenses of design software has been procured for design process.

ii. Software procured for creating sheet metal design and A class surfaces in 3D.

iii. Software procured for Kinematic study of linkages and load analysis.

Expenditure on R&D:

The Companies expenditure on R&D (including revenue expenditure) during the yearwas Rs. 68305952 (refer note no-44 page no. 86 of Annual Report)

3. Foreign exchange earnings and outgo:

Total foreign exchange used and earned:

Foreign exchange earnings : Rs. 281684986/-
Foreign exchange outgo : Rs. 42048098/-