>SUNDARAM FINANCE LIMITED: Key Subsidiaries and their performance

■ Sundaram BNP Paribas Home Finance Limited (50.10%)
Despite the challenges posed by the volatility and uncertainty in the operational environment, and stiff interest-rate competition, the Company managed to turn out a reasonably good performance during FY10, helped by an upswing in the business during the second half of the year, after a sluggish first half. The net profit for FY10 at Rs. 27.72 crores was 3.4% higher than in FY09 (Rs. 26.81 crores).

■ Sundaram BNP Paribas Asset Management Company Limited (50.10%)
This subsidiary earned a total income of Rs 111.71 crores for the year 2009-10, by way of investment management and advisory fees and other income during the year as compared to Rs. 86.05 crores in 2008-09. It reported a profit after tax of Rs 20.83 crores for the year as compared to Rs. 10.67 crores in the previous year. The Average Assets Under Management of
Sundaram BNP Paribas Mutual Fund as at March 31, 2010 was Rs. 13,878 crores, as compared to Rs. 9,267 crores for the previous year ending March 31, 2009. This represents a growth of 49.76% over the previous year. The closing AUM as on March 31, 2010 was Rs. 12,770 Crores. This represents a share of 2.08% of the Industry AUM of Rs. 6,13,979 Crores. It opened 11 branches and closed 9 branches during the year 2009–10, taking the total number of branches to 57 as at the yearend.

■ Sundaram Finance Distribution Limited (SFDL) (100%)
In spite of significant changes in the regulatory guidelines and decline in the number of New Fund Offers by mutual funds, the income from mutual fund distribution has gone up to Rs.1.58 crores during 2009-10 from Rs.1.04 crores during 2008-09. Despite reduction in insurance premium levels consequent to de-tariffing, the subsidiary has earned a higher commission of
Rs.4.01 crores through stepped-up efforts in distribution of insurance products during the year as against Rs.2.28 crores in the previous year. The profit after tax for the year amounted to Rs.1.96 crores as against Rs.1.37 crores in the previous year.

■ LGF Services Limited (100%)
In its sixth year of operation, this subsidiary has earned a higher commission of Rs.5.58 crores through stepped-up efforts in the distribution of insurance products as against Rs. 4.38 crores in the previous year. The profit after tax for the year was higher at Rs.1.83 crores as against Rs.1.77 crores in the previous year.

■ Sundaram BNP Paribas Trustee Company Limited (50.10%)
During the year under review, this subsidiary earned a gross income of Rs.1.24 crores by way of trusteeship fees and other income as against Rs. 1.05 crores in the year 2008-09. This translates to a growth of 17.75% on a year-to-year basis. It reported a PAT of Rs. 0.42 crores for the year ended March 31, 2010 as against Rs. 0.36 crores in the previous year, registering a growth of 16.67%. After taking into account a sum of Rs. 0.29 crores brought forward as surplus from the previous year, a sum of Rs. 0.71 crores is available for appropriation for the financial year 2009-10.

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