CHENNAI: The board of Sundram Fasteners Limited (SFL) has decided to capitalise reserves to the tune of Rs. 10.51 crore and issue bonus shares in the ratio of 1:1.

The company's reserves stood at Rs. 313.37 crore at the end of March 31, 2006. The board's decision was announced by the Chairman and Managing Director, Suresh Krishna, at the annual general meeting of the company held on Wednesday.

Arathi Krishna on board

The 43rd annual general body meeting also saw the shareholders giving their nod to the appointment of Arathi Krishna, daughter of Suresh Krishna, as the Executive Director of Sundram Fasteners.

Mr. Suresh Krishna informed the shareholders that SFL had drawn up a capital expenditure programme of over Rs. 100 crore for 2006-07. This would go into a host of areas like capacity build-up, infrastructure and modernisation. Last year, the company spent Rs. 62.64 crore, including plant and machinery.

He said the initial investment on the new plant coming up at Pantnagar in Uttaranchal would be around Rs. 40 crore. The company also planned to invest another Rs. 40 crore on a new greenfield unit at the Special Economic Zone in Mahindra World City near Chennai. He informed the shareholders that the Uttaranchal Government had extended tax benefits for three more years beyond March 31, 2007. He said the Uttaranchal project would go on stream by March next year. It would make high tensile fasteners, powder metal parts and water and oil pumps. The 100 per cent export venture in Mahindra World City would go operational in 2007-08.

The China plant of its subsidiary, he said, had completed its first full year of operations last year. It posted a turnover of Rs. 10.15 crore and incurred a loss of Rs. 2.87 crore.

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