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Sundaram Brake Linings Ltd.

BSE: 590072 Sector: Auto
NSE: SUNDRMBRAK ISIN Code: INE073D01013
BSE LIVE 15:40 | 14 Dec 640.40 -13.45
(-2.06%)
OPEN

641.50

HIGH

644.00

LOW

625.25

NSE 15:56 | 14 Dec 645.60 -6.65
(-1.02%)
OPEN

648.05

HIGH

667.85

LOW

625.00

OPEN 641.50
PREVIOUS CLOSE 653.85
VOLUME 269
52-Week high 836.45
52-Week low 361.05
P/E 73.19
Mkt Cap.(Rs cr) 252
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 641.50
CLOSE 653.85
VOLUME 269
52-Week high 836.45
52-Week low 361.05
P/E 73.19
Mkt Cap.(Rs cr) 252
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sundaram Brake Linings Ltd. (SUNDRMBRAK) - Chairman Speech

Company chairman speech

SUNDARAM BRAKE LININGS LIMITED ANNUAL REPORT 2011-2012 CHAIRMAN'S REPORT Ladies & Gentlemen, My colleagues on the Board and I have great pleasure in welcoming you all to the Thirty Eighth Annual General Meeting of your Company. The Directors' Report and the Audited Accounts for the year ended 31st March 2012 have been with you for sometime now and with your permission, I shall take them as read. ECONOMIC OUTLOOK India's GDP which grew @ 8.5% in 2010-11 has been decelerating and the growth of GDP in 2011-12 is estimated around 6.5% and there are clear signs of slowdown which is a cause for serious concern. There.is a perceptible decline in Business Confidence level and the new Investments are not forthcoming amidst policy paralysis. Policymakers must take key Initiatives to spur Investments and Growth and put the Economy back on rail. INDUSTRY OUTLOOK The commercial vehicles sector, which had a good growth momentum in 2010- 11, slowed down in 2011 -12. As a result of this, Your Company was able to achieve a growth of only 10% in 2011-12 in Domestic OE and After Market segments. The export segment registered a marginal growth of 3% in 2011-12 due to Global slowdown. WORKING RESULTS During the year 2011 -12, your Company reported a turnover of Rs.255.71 crores as compared to Rs.237.52 crores in 2010-11. - Domestic Market In the domestic market the overall turnover was Rs.169.88 crores in 2011-12 compared to Rs.154.47 crores in 2010-11. - Export Market The export turnover of Rs.83.66 crores constituted 33% of the total turnover of Rs.255.71 crores of the Company. There has been a 3% growth in the export turnover, compared to previous year. EXTRA-ORDINARY EXPENDITURE The Company had entered into the arrangements for settlement of disputes arising out of certain derivative transactions entered into on behalf of the Company with some banks. The settlements were subject to fulfilment of payment obligations arising on the Company for specified years which have now been fully met by the Company. With the discharge of all obligations in accordance with the settlement agreement, there is no further liability on this account. As per the practice followed in the past, the final amounts amounting to Rs.14 crores has been included in Extra-ordinary Expenditure in the Accounts for the Financial year 2011-12. With your valuable support, Your Company has fully come out of the extraordinary crisis that had arisen in 2006-07 on account of Unauthorized derivative transactions and can now look forward to a better future, leaving behind this bitter episode. COMPANY OUTLOOK & PROSPECTS DOMESTIC MARKET The Automobile sector, has started showing clear signs of deceleration in the 1st quarter of the current financial year. It is hoped that moderate growth may get revived soon which will help the company in improving its performance in the OE Segment. Your Company continues to be focused in its R&D efforts for introduction of new products for new applications to meet the demands of the Automobile manufacturers. EXPORTS Your Company has been enjoying Export House Status since April 1997, by virtue of its consistent export performance and is currently accredited with Star Export House Status valid till March 2014. Your Company was successful in clinching a deal in June 2012, for supply of Commercial Vehicle Linings to a leading and reputed customer in USA on a long term basis. CONCERNS ABOUT ESCALATING COSTS AND PRESSURE ON MARGINS It is a matter of concern that cost of Power & Fuel keeps escalating which exerts pressure on Margins. All efforts are being taken by the Management to maintain margins. DIRECTORS Mr. P.S.Raman, Mr. Ashok V Chowgule and Mr. KS.Ranganathan, Directors who retire by rotation have offered their services for re-appointment. I request the members to approve their re-appointment as Directors. On your behalf, on behalf of my colleagues on the Board and on my own behalf, I wish to take this opportunity to express my sincere thanks to our wholesalers, both in India and abroad, for their support and for marketing the Company's products. I would like to thank the State Bank of India, HDFC Bank, Export-Import Bank of India, Vehicle Manufacturers, Customers, Suppliers and Investors for their continued and valuable support. I would like to once again place on record our appreciation for the good work done by all the employees of the Company. I would like to thank you all, ladies and gentlemen, for making it convenient to attend Your Company's 38,h Annual General Meeting. SRI K MAHESH, CHAIRMAN & MANAGING DIRECTOR DATE: JULY 28, 2012