Face value of commercial paper outstanding as on 31.03.2016 was
Rs.1050,00.00 lakhs (31.03.2015 Rs.2314,00.00 lakhs). Maximum amount
of face value of commercial paper outstanding at any time during the
period was Rs.4155,00.00 lakhs (2014-15 Rs.3891,00.00 lakhs).
a) Additions / Deductions to Freehold Land and Buildings in Gross Block
include assets transferred to / from Investment Property.
b) Additions to Intangible Assets under development in Gross Block
include depreciation on assets used for development of Computer
software amounting to Rs.3.90 lakhs.
c) Depreciation on Assets on Finance lease Rs.0.52 lakhs (31.03.2015
Rs.8.35 lakhs) has been netted off against Lease Income.
d) Building on leasehold land include Rs.11,93.63 lakhs (31.03.2015
Rs.11,93.63 lakhs) being the cost of ownership of fats in co-operative
e) Free hold Land and Buildings includes Rs.11,73.89 lakhs (31.03.2015
Rs.8,38.89 lakhs) representing undivided share of land.
f) In accordance with Accounting Standard, AS-26 -Intangible Assets,
computer software purchased /developed amounting to Rs.6,39.80 Lakhs
(31.03.2015 Rs.8,14.28 lakhs) is amortised over their expected useful
life of three to fve years based on a technical evaluation.
g) The depreciation additions for the previous year amounting to
Rs.95,55.45 lakhs includes Rs.4,85.45 lakhs adjusted against Retained
earnings on account of Transitional provision as per Schedule II of
Companies Act 2013.
1) During the year, the Company acquired the entire 26% equity stake,
being 8,19,00,000 equity shares of Rs.10/- each, held by Royal & Sun
Alliance Insurance PLC in the equity share capital of Royal Sundaram
Alliance Insurance Company Limited (Royal Sundaram), for a total
consideration of Rs.450,00 lakhs. Consequent to the said acquisition,
the holding of the Company in Royal Sundaram increased from 49.90% to
75.90% and Royal Sundaram became the Company''s subsidiary effective
29th July 2015. Pursuant to the above acquisition the name of Royal
Sundaram Alliance Insurance Company Limited changed to Royal Sundaram
General Insurance Co. Limited effective 17th December 2015.
2) In accordance with the scheme of reduction of capital approved by
the High Court of Madras and Ministry of Corporate Affairs, Sundaram
BNP Paribas Fund Services Limited (SBNPPFS), reduced its paid up Equity
Share Capital, effective 1st September 2015. Consequently, the
company''s investment of Rs.48,19.54 lakhs in the equity share capital
of SBNPPFS (4,81,95,000 equity shares of Rs.10 each) reduced to
Rs.12,24.15 lakhs (i.e. 1,22,41,530 equity shares of Rs.10 each) and
the accumulated provision of Rs.35,95.39 lakhs has been adjusted
against the cost of investment. During the year, the company subscribed
to the rights issue of equity shares offered by SBNPPFS.
3) In accordance with the terms of the Joint Venture Agreement, the
Company sold the entire holdings on 05th August 2015 in ''BNP Paribas
Sundaram Global Securities Operations Private Limited'' to the Joint
Venture partner ''BNP Paribas Securities Services, Paris'' for a
consideration of Rs.44,29.60 lakhs.
4) Denotes investment where provision for diminution in value has been
5) Includes 1100 partly paid shares @ Rs.50,000/- per share. (Face
value Rs.1,00,000 per share)
6) Face value in Omani Riyal.
7) Reclassified under Current Investments.
8) Investments in the growth option of the open-ended schemes of
Sundaram Mutual Fund is in compliance with the seed capital
requirements stipulated by SEBI Mutual Funds (Amendment) Regulations,
2014 and cannot be redeemed unless the scheme is wound up.
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.253,12.30 lakhs
(cost Rs.253,05.63 lakhs) and bank deposits of Rs.90,86.00 lakhs in
favour of trustees representing the deposit holders of the company.
Note 1: General
1. Segment Reporting
Segment information is presented in the Consolidated Financial
Statements in terms of the Accounting Standard 17 - Segment Reporting.
2. In November 2014, the Reserve Bank of India, issued a revised
regulatory framework for NBFC''s, which inter alia required the asset
classification and provisioning norms to be aligned with those for
Banks. In March 2015, Reserve Bank of India amended the Non-Banking
Financial (Deposit Accepting or Holding) Companies Prudential Norms,
requiring NBFC''s to classify Non- Performing Assets based on 3 months
overdue, by the financial year ending 31st March 2018. As a matter of
prudence, the Company has adopted the 3 months norm, in advance, for
the financial year ended 31st March 2016, as compared to 120 days norm
followed in the previous financial year. This has resulted in an
additional charge of Rs.8,06.05 lakhs (including income
de-recognised)to the Profit before tax for the financial year.
a) Royal Sundaram General Insurance Co. Limited was a Joint Venture
company upto 28th July 2015 and has become a subsidiary since
then.(Refer Note 12(1) of Non-Current Investments).
b) The Company sold the entire holdings in ''BNP Paribas Sundaram Global
Securities Operations Private Limited'' on 5th August 2015. (Refer Note
12(3) of Non-Current Investments).
3. The Company has spent an amount of Rs.12,04.65 lakhs (2014-15
Rs.9,13.95 lakhs) towards Corporate Social Responsibility (CSR) under
Sec 135 of the Companies Act 2013, in the various areas covered under
the regulatory provisions like healthcare, education, environment and
protection of art and culture.
4. The pending litigations as on 31st March 2016 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.
5. In respect of a lease transaction, the Company preferred appeals
in the earlier years, against the demands raised by Commissioner of
Customs / CESTAT / Appellate Tribunal for Foreign Exchange, towards
duty and penalty, aggregating to Rs.63.79 lakhs.
6. Estimated amount of contracts remaining to be executed on capital
account Rs.2,89.49 lakhs (net of advances of Rs.3,27.83 lakhs)
(31.03.2015 Rs.3,12.65 lakhs, net of advances of Rs.6,11.87 lakhs)
Investment in Partly paid-up Equity shares Rs.5,50.00 lakhs (31.03.2015
7. 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.
8. Exchange Traded Interest Rate (IR) Derivatives : NIL
9. Qualitative disclosures on risk exposure of derivatives
i) Qualitative disclosures
The Company has a Board approved policy for entering into derivative
transactions. Derivative transaction comprises Forward Rate Agreements,
Interest Rate Swaps, Coupon Only Swaps and Forward Exchange contracts.
The Company undertakes such transactions for hedging balance sheet
assets and liabilities. Such outstanding derivative transactions are
accounted on accrual basis over the life of the underlying instrument.
The Asset Liability Management Committee and Risk Management Committee
periodically monitors and reviews the risks involved.
10. Details of Financial Assets Sold to Securitisation /
Reconstruction Company for Asset Reconstruction : NIL
11. Details of non-performing financial assets purchased / sold :
12. Details of financing of parent company products NIL
13. Details of Single Borrower Limit (SBL) /
Group Borrower Limit (GBL) exceeded by the company NIL
14. Registration obtained from other financial sector regulators
Insurance Regulatory and Development
Authority Corporate Agency
15. Disclosure of penalties imposed by RBI and other regulators NIL
16. Overseas Assets (for those with Joint Ventures and Subsidiaries
abroad) : NIL
17. Off-balance sheet SPVs sponsored (which are required to be
consolidated as per accounting norms) : NIL
Note 18: Disclosure on frauds
During the year, four instances of fraud committed by customers, in the
nature of cheating and forgery, aggregating to Rs.5,04.17 lakhs were
detected and reported to Reserve Bank of India. The amount has been
fully provided after considering recoveries to the extent of Rs.2,64.69
lakhs, while the company has proceeded legally to recover the balance
Note 19: Previous year figures have been regrouped / reclassified
wherever necessary to conform to the current year''s presentation.