a) Paid-up share capital includes 5,09,75,545 Equity Shares allotted as
fully paid-up by way of bonus shares by Capitalisation of Reserves and
Securities Premium and 37,75,965 Equity Shares allotted for
consideration other than cash pursuant to a Scheme of Amalgamation.
b) The number of shares outstanding at the beginning and at the end of
the reporting period are the same.
c) No shareholder of the Company holds more than 5% of the Equity
d) The Company issued 2,77,75,965 Equity Shares by way of bonus shares
during the financial year 2008-09.
The Secured Non Convertible Debentures are secured by mortgage of
immovable property ranking pari passu with charges created in favour of
the trustees in addition to specific assets covered by charge on
Hypothecation Loan receivables / Hire purchase / Lease agreements with
a security cover of 100% / 125%, as per the terms of issue.
The Term loans from banks are secured by hypothecation of specific
assets covered by a charge on Hypothecation Loan Receivables / Hire
purchase / Lease agreements.
The Unsecured Subordinated Non Convertible Debentures are subordinated
to the existing and future unsecured borrowings of the Company and
qualify as Tier II Capital under the Non Banking Financial (Deposit
accepting or holding) Companies Prudential Norms (Reserve Bank)
Working capital demand loans and cash credit are secured by
hypothecation of assets covered by charge on Hypothecation Loan
Receivables, Hire Purchase / Lease agreements, ranking pari passu,
excluding assets which are specifically charged to others.
Refer Note 4 for Security provided for Term Loans from Banks and
Face value of commercial paper outstanding as on 31.03.2012 was Rs
555,00.00 lakhs (31.03.2011 - Rs 580,00.00 lakhs). Maximum amount of
face value of commercial paper outstanding at any time during the year
was Rs 1715,00.00 lakhs (2010-11 - Rs 1290,00.00 lakhs)
In accordance with the Reserve Bank of India directives, the Company
has created a floating charge on the statutory liquid assets comprising
investment in Government Securities of face value Rs 143,62.30 lakhs
(Cost - Rs 143,92.77 lakhs) and bank deposits of Rs 66,70.50 lakhs (Refer
Note 17 ''Cash and Bank balances'') in favour of trustees
representing the deposit holders of the Company.
During the year the Company has subscribed to the rights equity shares
of Sundaram BNP Paribas Fund Services Ltd., Professional Management
Consultants Ltd., Transenergy Ltd and Royal Sundaram Alliance Insurance
During the year the Company has subscribed to the preferential equity
share of Sundaram Infotech Solutions Ltd. and Sundaram Hydraulics Ltd.
(a) denotes shares are under a lock in period
(b) denotes investments where provision for diminution in value has
(c) denotes increase in holding on receipt of bonus shares @ face value
in Omani Riyal
The Long-term loans and advances includes Non-performing Assets of Rs
2,77.00 lakhs (Previous Year - Rs 19,90.53 lakhs)
Advance income tax and tax deducted at source (net of provision)
Provision for Income Tax Rs 477,86.25 lakhs (31.03.2011 - Rs 381,34.20
Income tax paid under dispute Rs 47,72.76 lakhs(31.03.2011 - Rs 37,51.69
Advance Fringe Benefit Tax Rs 0.16 lakhs (31.03.2011 - Rs 1,70.16 lakhs)
Provision for Fringe Benefit Tax Rs 21.10 lakhs (31.03.2011 - Rs 1,60.87
1.1 The presentation in the Balance Sheet, Profit and Loss Statement
and Notes to the Accounts is in terms of the Revised Schedule VI to the
Companies Act, 1956 which has become mandatory with effect from 01st
April, 2011. The assets and liabilities have been classified as current
and non-current based on a twelve month operating cycle. Previous
year''s figures have been regrouped / reclassified wherever necessary
to conform to the current year''s presentation.
1.2 Segment Reporting:
Segment information is presented in the Consolidated Financial
Statements in terms of the Accounting Standard - 17 - Segment
The credit enhancement and liquidity support were provided in the form
of bank deposits for Rs 46,75.00 lakhs. The Company continues to collect
and service the receivables in respect of the securitised assets.
During the year, the Company assigned a part of its Hypothecation Loan
receivables / Hire purchase assets - ''at par'' representing the
principal component, aggregating Rs 129999.44 lakhs (Previous Year - Rs
1.2 RELATED PARTIES DISCLOSURES:
Related party disclosures, as stipulated by Accounting Standard - 18 -
''Related Party Disclosures'', are given below:
Sundaram Finance Distribution Ltd.
Sundaram BNP Paribas Home Finance Ltd.
Sundaram Asset Management Company Ltd.
Sundaram Trustee Company Ltd.
LGF Services Ltd.
Infreight Logistics Solutions Ltd.
Sundaram Infotech Solutions Ltd.
Sundaram Business Services Ltd.
Professional Management Consultants Ltd.
Sundaram BNP Paribas Fund Services Ltd.
Sundaram Parekh Warehousing Services Ltd.
Sundaram Insurance Broking Services Ltd.
Caltec Servicez Private Limited
Axles India Ltd.
Turbo Energy Ltd.
Sundaram Dynacast Private Ltd.
Sundaram Hydraulics Ltd.
The Dunes Oman LLC (FZC)
Flometallic India Ltd.
Royal Sundaram Alliance Insurance Company Ltd.
BNP Paribas Sundaram Global Securities Operations Private Ltd (BNP
Paribas Sundaram GSO)
Key Management Personnel:
Mr. T. T. Srinivasaraghavan, Managing Director
Mr. Harsha Viji, Director (Strategy & Planning)
1.3 The Commissioner of Customs, Tuticorin raised a demand of Rs 500
lakhs towards penalty on the Company and Rs 1824 lakhs (towards duty) on
the Company in September 2006 jointly and severally with the Lessee, in
respect of a Lease transaction. The Appellate Tribunal admitted the
appeal preferred by the Company and granted stay against the recovery
proceedings in March 2007.
During the year, the Customs Excise and Service Tax Appellate Tribunal
(CESTAT) in its Order, while mentioning the approximate duty to be
around Rs 43 lakhs, remanded the appeal to the adjudicating Commissioner
for requantifying the duty. The Tribunal has also revised the penalty
to Rs 10 lakhs. The Company has sought legal opinion on the further
course of action.
The Special Director of Enforcement, New Delhi, imposed a penalty of Rs
10 lakhs on the Company. The Company has preferred an appeal against
the penalty with the Appellate Tribunal for Foreign Exchange and
obtained a stay after remitting Rs 2.50 lakhs as directed by the
Tribunal. Meanwhile the Company initiated arbitration proceedings
against the Lessee and has received an award in its favour.
1.4 Estimated amount of contracts remaining to be executed on capital
account - Rs 774.63 lakhs (net of advances of Rs 2204.47 lakhs).
(31.03.2011 - Rs 3098.26 lakhs, net of advances of Rs 922.69 lakhs).
1.5 There are no amounts due to Small Scale Industries in terms of
The Micro, Small and Medium Enterprises Development Act, 2006.
1.6 Contingent liabilities in respect of
(Rs in lakhs)
a) Liability -
To Banks - on Cheques discounted 15,08.96 16,66.75
on Letter of Credit 28,28.95 11,86.00
b) Claims against the Company not
acknowledged as Debts:
Hire Purchase transactions and
termination of Lease 31.07 31.07
transactions - Appeals filed by the Company
Service Tax 45,01.73 20,60.01
Others 12,54.69 10,81.69
1.7 Derivative contracts outstanding:
Hedging exchange rate risk 47,10.00 -
Hedging interest rate risk - 545,00.00
1.8 Cost Insurance Freight (CIF)
value of imports:
Capital goods (on payment basis) 12,98.14 9,57.19
1.9 Expenditure in foreign currency
(on payment basis): Interest 9,74.76 -
On other matters 25.43 16.94
1.10 Earnings in foreign currency
Dividend from an Associate Company 2,89.25 -
Income from other services (IT support
services) 86.28 68.41