Annual Report: 2024
Ambadi Investments Limited is primarily an investment company holding investments in group companies and is registered as a Non-Deposit taking Systemically Important Core Investment Company (CIC). The 83rd Annual Report includes the audited financial statements for the fiscal year ending March 31, 2024.
Financial Performance
AIL earns revenue primarily through dividend income from group company investments. The company reported a standalone income of ₹115.05 Crore for the year ended March 31, 2024, compared to ₹94.09 Crore in the previous year. The Board approved four tranches of interim dividends aggregating to ₹230 per equity share of face value ₹10 each. The company transferred ₹19 Crore to Special Reserve as required under section 45-IC of the Reserve Bank of India Act, 1934. Total equity investments stood at ₹48,444.45 Crore. Key investments include Tube Investments of India Limited, Cholamandalam Financial Holdings Limited, Carborundum Universal Limited, and E.I.D. - Parry (India) Limited.
Subsidiaries and Associates Performance
The company has two subsidiaries and seven associate companies, with no change in their business nature during the year. Parry Agro Industries Limited (PAIL) faced a consolidated loss before tax, while Parry Enterprises India Limited (PEIL) showed a profit. Tube Investments of India Limited (TII) achieved consistent growth with subsidiaries like Shanthi Gears Limited and CG Power. Carborundum Universal Limited (CUMI) reported consolidated sales growth and Cholamandalam Financial Holdings Limited (CFHL) and E.I.D-Parry (India) Limited (EID) also showed significant financials. Kartik Investments Trust Limited (KITL) reported a loss. Chola Insurance Distribution Services Private Limited (CIDSPL) reported profit before tax of 0.63 Crore. Cholamandalam Investment and Finance Company Limited (CIFCL) increased its Total Income to 19,419.87 Crore.
Corporate Governance and Directors
The Board of Directors consists of eight members, including promoter and non-executive directors, as well as non-executive independent directors. Mr. MA Alagappan is the Chairman of the Board. The shareholders at the 80th AGM approved the re-appointment of Mr. P Nagarajan and Mr. P R Ravi as independent directors for a second term of 3 years. Based on the recommendation of the Nomination and Remuneration Committee, the Board recommends the appointment of Mr. L Ramkumar and Mr. K Balasubramanian as Independent Directors for a term of three consecutive years each with effect from September 10, 2024. The Board recommends the re-appointment of Mr. M M Murugappan and Mr. Vellayan Subbiah as directors liable to retire by rotation. M/s. Brahmayya & Co. will be ineligible to continue as statutory auditors from FY 24-25. The Board recommends the appointment of M/s. K S Rao & Co. as statutory auditors for a term of three continuous years with effect from the conclusion of the ensuing 83rd AGM.
Risk Management, CSR, and Other Information
Risk management is a process to identify and manage threats. Key risk exposures of the Company along with risk mitigation measures are provided. The Company does not have CSR obligations for FY 24. Dividends upto second interim dividend for FY 2016-17 has been transferred to the IEPF. Two promoter shareholders had filed application before the National Company Law Tribunal which were withdrawn during the year. The Company is compliant with applicable laws, rules, circulars and regulations, including RBI Master Directions.
Financial Statement Highlights
Key financial statement details are provided, including the Standalone Balance Sheet, Statement of Profit and Loss, and Statement of Changes in Equity as of March 31, 2024. Also included are the Independent Auditor's Report, and various annexures related to corporate governance and financial information. This includes information about share capital, reserves, investments, related party transactions, and other disclosures as per accounting standards and regulatory requirements.
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