The Directors are pleased to present the Forty Ninth Annual Report
together with the audited accounts for the year ended 31st March 2012.
FINANCIAL RESULTS Rs lakhs
Revenue from Operations 214,663.52 181,071.66
Other Income 1,807.43 436.75
Total Revenue 216,470.95 181,508.41
Gross Profit before interest,
depreciation and taxes 31,315.75 23,444.97
Less : Interest '' 3,490.26 2,697.79
Exchange Losses/(Gains) 5,729.74 868.95
Depreciation 6,361.31 5,453.72
Profit before taxes 15,734.45 14,424.51
Less : Provision for tax 4,474.58 3,881.94
Profit after tax 11,259.87 10,542.57
Add : Balance brought forward 3,418.72 2,939.21
Balance available for appropriation 14,678.59 13,481.78
Interim Dividends 2,941.80 2,626.61
Tax on Interim Dividends 467.05 436.45
Transfer to General Reserve 5,000.00 7,000.00
Balance carried forward 6,269.74 3,418.72
SALES & PROFITS
The Company recorded total Net Sales and other income of Rs.2164.71
Crores for the year ended March 31, 2012 as against Rs 1815.08 Crores
achieved during the previous year. The export sale was at Rs 645.88
Crores as against Rs 479.35 Crores in the previous year. The Profit
after tax was higher at Rs 112.60 Crores as against Rs 105.43 Crores in
the previous year.
The Company continues to be a net foreign exchange earner for the
fifteenth year in succession.
The Directors have decided to pay as Second Interim Dividend of Re 0.80
per Share of face value of Re 1 each, which together with the Interim
Dividend of Re 0.60 declared and paid earlier would amount to a total
dividend for the year of Rs 1.40 per share of Re 1 each. Dividend
disbursed amounted to Rs 1260.77 lakhs. Second Interim Dividend will
absorb a total amount of Rs 1681.03 lakhs. The Directors do not
recommend any final dividend.
CONSOLIDATED FINANCIAL STATEMENTS / STATUTORY STATEMENTS
As required by Accounting Standard - AS 21 on Consolidated Financial
Statements, the audited Consolidated Financial Statements of the
Company and its Subsidiaries are attached.
As per Section 212 of the Companies Act, 1956, the Company is required
to attach the Directors'' Report, Balance Sheet and Profit and Loss
Account of subsidiaries. The Central Government has granted general
exemption from complying with Section 212 of the Companies Act, 1956 to
all companies vide Notification No. 5/12/2007-CL-III dated February 8,
2011. Accordingly the Company has presented in this Report, the
consolidated financial statements of the holding company and all its
subsidiaries, duly audited by the Statutory Auditors. The Company has
also disclosed in the Consolidated Balance sheet the information
required to be provided as per the aforesaid notification dated
February 8, 2011. The company will make available the audited annual
accounts and related information of its subsidiaries, upon request by
any of its shareholders. The annual accounts of the subsidiary
companies will also be kept for inspection, by any member at the
Registered Office of the Company and its subsidiary companies.
The Company has not accepted any deposits, within the meaning of
Section 58-A of the Companies Act, 1956 read with the Companies
(Acceptance of Deposits) Rules, 1975 made there under.
The information required under Section 217(1)(e) of the Companies Act,
1956, read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 is given in the Annexure to this
The information required under the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules 1988, is given in the
Annexure appended hereto and forms part of this report. In terms of
Section 219(1)(b)(iv) of the Act, the Report and Accounts are being
sent to the Members excluding the aforesaid Annexure. Interested
Members may write to the Company Secretary, at the Registered Office of
the Company, for obtaining a copy of the said Annexure.
Pursuant to Section 233(B)(2) of the Companies Act, 1956, the Board of
Directors on the recommendation of the Audit Committee, appointed Sri P
Raju Iyer, a Cost Accountant, as Cost Auditor of the Company for the
Financial year ended 31st March 2012.
As per Clause 49 of the Listing Agreement with the Stock Exchanges, a
separate report on Corporate Governance and Management Discussion and
Analysis together with a certificate from the Company''s Auditors
confirming the compliance of conditions of Corporate Governance is
attached to this report.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Directors confirm that :
1) in the preparation of annual accounts, the applicable accounting
standards have been followed.
2) appropriate accounting policies have been selected and applied
consistently, and judgments and estimates that have been made are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for that period.
3) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
4) the annual accounts have been prepared on a going concern basis.
Sri K Ramesh, Director and Sri R Srinivasan, Director retire from the
Board by rotation and being eligible, offer themselves for
The Auditors, M/s Sundaram & Srinivasan, Chartered Accountants,
Chennai, retire and are eligible for re-appointment.
The industrial relations continued to remain congenial during the
current year. The Directors thank the employees for their contribution
to the progress of the Company.
The Directors wish to thank the Chinese Authorities, Officers of Haiyan
County, Jiaxin City, Zhejiang province, Chinese tax and other
administrative authorities for the support extended to Sundram
Fasteners (Zhejiang) Limited.
The Directors wish to thank One North East, the Regional Development
Authority for Cramlington, United Kingdom for the continued support
extended to the Subsidiary.
The Directors wish to thank the Company''s bankers, State Electricity
Boards in Tamil Nadu, Pondicherry, Andhra Pradesh and Uttarakhand,
customers and vendors, for all the assistance rendered by them from
time to time.
On behalf of the Board
Chennai SURESH KRISHNA
May 28, 2012 Chairman & Managing Director