Ltd (SFL) has reported a net profit of Rs 40.36 crore for the year
2000-01, the company had made a net profit of Rs 79.54 crore
mainly because of a mandatory change in the method of accounting
of hire-purchase finance charges, from the even spread method
to the IRR method. This change resulted in an inflation of
income from operations by Rs 86.31 crore in the year before
SFLs board of
directors has recommended a dividend of Rs 6 per share (60 per
cent), which consumes Rs 14.40 crore. The company has a paid-up
equity of Rs 24 crore.
Last year, SFLs gross
disbursements crossed Rs 1,220 crore as against Rs 1,034 crore in
the year before. About 58 per cent of the disbursements were for
commercial vehicles, and another 34 per cent for cars and
multi-utility vehicles, says SFL managing director G K Raman.
During 2001-02, SFL
undertook a clutch of initiatives. Because expenditure on diesel
and tyres account for the bulk of a transport operators total
costs, SFL introduced special credit delivery systems for these.
In collaboration with
Indian Oil Corporation, SFL launched powerplus fleet card,
which truck-drivers could use to buy diesel. It also tied up with
JK Tyres for offering finance to its customers, who want to buy JKs
The company also launched
a portal for freight exchange (www.infreigh.com),
on which trucking capacity could be offered and bought. The portal
is run by a joint venture company called InFreight Technologies
India Pvt Ltd, in which SFL is a partner.
Besides, SFL also created
a division called Sundaram Business Services, which would render a
host of services such as employee administration, deposit
and credit processing, handling cheques and insurance matters and
accounting for other companies, the TVS group companies to start