Sundaram Finance Holdings Ltd Management Discussions

SUNDARAM FINANCE DISTRIBUTION LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW During the year under review, the total commission earned through distribution of insurance products of M/s. National Insurance Company Limited and M/s. SBI Life Insurance Company Limited is Rs.136.10 lakhs as against Rs.119.12 lakhs in the previous year. Your Company earned an income of Rs.80.19 lakhs through distribution of various mutual fund/financial products as against Rs.5.57 lakhs in the previous year. The profit after tax for the year amounted to Rs.100.30 lakhs as against Rs.18.87 lakhs in the previous year. REDUCTION IN THE PAID-UP CAPITAL During the year, the paid-up capital of the Company was reduced from Rs.1,50,00,000/- divided into 15,00,000 equity shares of Rs.10/- each to Rs.50,00,000/- divided into 5,00,000 equity shares of Rs.10/- each pursuant to the Order dated 23rd December 2005 passed by the Honourable High Court of Judicature at Madras.