1 Net proceeds from SFL Share Trust
During the year, SFL Shares Trust sold 17,37,012 equity shares of
Sundaram Finance Limited. These shares accrued to the Trust on account
of the merger of Lakshmi General Finance Limited with Sundaram Finance
Limited, in the year 2005, in accordance with a Scheme of Amalgamation
approved by the High Court of Madras. Sundaram Finance Limited, being
the sole beneficiary of the Trust received an amount of Rs.25655.70
lakhs arising from the sale of above shares and credited the same
directly to the Capital Reserve, in line with the underlying substance
of the transaction.
2 During the year, the Company entered into an agreement with Royal
Sun Alliance Plc UK (RSA) whereby the Company would acquire 26% equity
stake of RSA in Royal Sundaram Alliance Insurance Company Ltd (Royal
Sundaram) for a consideration of Rs.450 Crores which is awaiting
regulatory approvals. The Company currently holds 49.90% in Royal
Sundaram and the said acquisition would increase its holding to 75.90%.
3 The Company has spent an amount of Rs.913.95 lakhs towards
Corporate Social Responsibility (CSR) under Sec 135 of the Companies
Act 2013, in the various areas covered under the regulatory provisions
like health care, education, environment and protection of art and
4 RELATED PARTIES DISCLOSURES:
Related party disclosures, as per Accounting Standard 18 - ''Related
Party Disclosures'', for the year ended 31st March 2015, are given
Subsidiary Companies: Associates:
Sundaram BNP Paribas Home Finance Ltd. Axles India Ltd.
Sundaram Asset Management Company Ltd. Turbo Energy Private Ltd.
Sundaram Asset Management Singapore
Pte Ltd. Transenergy Ltd.
Sundaram Trustee Company Ltd. Sundaram Dynacast Private
Sundaram Business Services Ltd. Sundaram Hydraulics Ltd.
Sundaram BPO India Ltd. Flometallic India Private
Sundaram Insurance Broking Services
Ltd. The Dunes Oman LLC (FZC)
Sundaram Finance Distribution Ltd.
LGF Services Ltd.
Sundaram BNP Paribas Fund Services Ltd.
Sundaram Infotech Solutions Ltd.
Infreight Logistics Solutions Ltd.
Sundaram Parekh Warehousing Services Ltd.(merged with Infreight
Logistics Solutions Ltd. with effect from 01.04.2014)
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)
Mr A N Raju, Director (Operations)
5 The pending litigations as on 31st March 2015 have been compiled
by the company and reviewed by the Statutory Auditors. The current
position of the litigation has been evaluated and the effect thereof
has been appropriately disclosed in the financial statements.
6 The Company preferred an appeal against the demand raised by the
Commissioner of Customs, Tuticorin, in respect of a lease transaction.
The Customs Excise and Service Tax Appellate Tribunal (CESTAT) in its
Order, remanded the appeal to the Adjudicating Commissioner for
requantifying the duty. The Commissioner of Customs, Tuticorin vide
Order dated 19.12.2012, re-quantified the duty at Rs.43.79 lakhs. The
company filed an appeal against the Order and remitted the duty under
The Hon''ble High Court of Madras granted an interim stay against the
collection of penalty of Rs.10 lakhs imposed by CESTAT.
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 has initiated arbitration proceedings
against the Lessee and has received an award in its favour.
7 Contingent liabilities in respect of (Rs. in lakhs)
a) Liability -
To Banks -on Cheques discounted 3,41.05 6,97.09
on Letters of Credit 22,76.74 7,57.91
b) Claims against the company not acknowledged as debts:
Service Tax 75,89.23 64,84.63
Others 14,90.22 15,84.04
8 Estimated amount of contracts remaining to be executed on capital
account - v312.65 lakhs (net of advances of Rs.611.87 lakhs)
(31.03.2014 - Rs.508.63 lakhs, net of advances of Rs.346.56 lakhs)
Investment in Partly paid-up Equity shares Rs.550.00 lakhs (31.03.2014
- Rs.1,098.90 lakhs)
9 Based on the current assessment of the long-term contracts in the
ordinary course of business, the Company has made adequate provision
for losses where required.
The derivative contracts have been entered into for hedging the foreign
currency liability and interest liability. Derivative contracts being
in the nature of hedge contracts, the Company does not anticipate any
material losses from the same.
10 Exchange Traded Interest Rate (IR) Derivaties : NIL
11 Details of Financial Assets Sold to Securitisation /
Company for Asset Reconstruction: NIL
12 Details of non-performing financial assets purchased / sold
during the year 2014-15:
A Details of non-performing financial assets purchased : NIL
B Details of non-performing financial assets sold : NIL
13 Details of financing of parent company products: NIL
14 Details of Single Borrower Limit (SBL) /
Group Borrower Limit (GBL) exceeded by the company : NIL
15 Registration obtained from other financial sector regulators:
IRDA - Composite Corporate Agency
16 Disclosure of penalties imposed by
Reserve Bank of India and other regulators : NIL
17 Overseas Assets (for those with Joint Ventures and Subsidiaries
18 Off-balance sheet SPVs sponsored NIL
(which are required to be consolidated as per accounting norms)