MIRA INFORM REPORT

Report Date :

26.05.2011

IDENTIFICATION DETAILS

Name :	SHRIRAM TRANSPORT FINANCE COMPANY LIMITED
Registered Office :	Mookambika Complex, 3^rd Floor, No.4, Lady Desika Road, Mylapore, Chennai – 600 004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	30.06.1979
Com. Reg. No.:	18-007874
Capital Investment / Paid-up Capital :	Rs.2255.418 millions
CIN No.: [Company Identification No.]	L65191TN1979PLC007874
TAN No.: [Tax Deduction & Collection Account No.]	CHES00900E
Legal Form :	Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Subject is engaged in business of Hire Purchase, Leasing and Hypothecation Loan Activities.
No. of Employees :	13817 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (70)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 153695000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company is good. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :

Mookambika Complex, 3^rd Floor, No.4, Lady Desika Road, Mylapore, Chennai – 600 004, Tamilnadu, India

Tel. No.:

91-44-25341431

E-Mail :

secretarial@stfc.in

Website :

http://www.stfc.in

Head Office :

Wockhardt Towers, West Wing, Level-3, C-2, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra, India

Tel. No.:

91-22-40959595

Fax No.:

91-22-40959597

Branch Office :

Located at:

Adilabad	Calicut	Hissar	L B Nagar
Adoni	Chamarajnagar	Hooghly	Lakhimpur
Agartala	Chandannagar	Hospet	Latur
Agra	Chandigarh	Hosur	Ilkal
Ahmedabad	Chandikhol	Hubli	Lucknow
Ahmednagar	Chandrapur	Hyderabad	Ludhiana
Ajmer	Channapatna	Indore	Machilipatnam
Akola	Channarayapatna	Itchapuram	Madanapalli
Alappuzha	Chattarpur	Jabalpur	Madgaon
Aligarh	Chengalpattu	Jagadamba	Madhurawada
Allahabad	Chennai	Jagdalpur	Madikeri
Alwar	Chickballapur	Jaipur	Madiwala
Amalapuram	Chidambaram	Jaisalmer	Madurai
Ambikapur	Chikkamangalore	Jajpur	Malda
Amravati	Chikkodi	Jalandhar	Malegaon
Amreli	Chinchwad	Jalgaon	Mancherial
Amritsar	Chindwara	Jalna	Mandapeta
Anakapalli	Chiplun	Jamkhambhalia	Mandi
Anand	Chitradurga	Jammu	Mangalore
Ananthapur	Chittore	Jamnagar	Manjeri
Anchal	Chittorgarh	Jamshedpur	Markapuram
Angamaly	Coimbatore	Janjgir	Marthalli
Angul	Coochbehar	Jhalawar	Marthandam
Arakonam	Cuddalore	Jharsuguda	Mayiladithurai
Arani	Cuddapah	Jhunjhunu	Nellore
Aranthangi	Cumbum	Jodhpur	New Delhi
Ariyalur	Cuttack	Jorhat	Nizamabad
Asansol	Dahod	Junagadh	Ongole
Attur	Dausa	Jyepore	Ooty
Aurangabad	Davangere	Kadapa	Osmanabad
Azadpur	Deepika	Kaithal	Ottanchatram
Bacheli	Dehradun	Kakinada	Padi
Bagalkot	Dewas	Kallakurichi	Palakkad
Balaghat	Dhamtari	Kalyan	Palani
Balasore	Dhanbad	Kanchangadh	Palanpur
Bankura	Dharmapuri	Kanchipuram	Palayamkottai
Baramati	Dharwad	Kankavali	Palia
Barasat	Dhule	Kannur	Pandarpur
Bardoli	Dindigul	Kanpur	Panjim
Bareilly	Durgapur	Karad	Paramakudi
Barmer	Eluru	Karaikudi	Parbhani
Baroda	Ernakulam	Karim Nagar	Parvathipuram
Basavakalyan	Erode	Karnal	Patan
Batlakundu	Etawah	Karur	Pathanamthitta
Beed	Faizabad	Kasargod	Pathankot
Begusarai	Faridabad	Kathua	Patna
Behraich	Farrukhabad	Katni	Pattukotai
Belgaum	Fatehpur	Kattappana	Piduguralla
Bellary	Gadag	Kattedan	Surendranagar
Bengaluru	Gadwal	Kawardha	T Dasarahalli
Berhampur	Gajuwaka	Kayamkulam	Tadepalligudem
Betul	Gandhidham	Keonjhar	Tadipatri
Bhadrak	Ganganagar	Khamgaon	Tambaram
Bhagalpur	Gaya	Khammam	Trichy
Bharatpur	Ghaziabad	Khargapur	Trivandram
Bharuch	Gobichettipalayam	Kodada	Tumkur
Bhatinda	Godhavarikhani	Kolar	Tuticorin
Bhavanipuram	Godhra	Kolhapur	Udaipur
Bhavnagar	Gondia	Kolkatta	Udhampur
Bhilai .	Gorakhpur	Kollam	Udupi
Bhilwara	Gudiwada	Kompally	Ujjain
Bhimavaram	Gudur	Koppal	Ulhasnagar
Bhiwandi	Gulbarga	Korba	Una
Bhopal	Gummidipoondi	Kota	Tiruchendur
Bhubaneshwar	Guna	Kothagudam	Tirunelveli
Bhuj	Guntur	Kotputli	Tirupathi
Bidar	Gurgaon	Kottayam	Tirupur
Bijapur	Guwahati	Kovilpatti	Tirur
Bijnore	Gwalior	Krishnagiri	Tiruvannamalai
Bikaner	Haldwani	Krishnanagar	Tiruvarur
Bilaspur	Hanmana	Kukatpally	Tiruvotriyur
Birbhum	Hassan	Kullu	Trichur
Bokaro	Haveri	Kumbakonam	Vatakara
Bongaigaon	Hazaribagh	Kumta	Vellore
Bundi	Himayathnagar	Kundapur	Vijayawada
Burdwan	Himmatnagar	Kunnamkulam	Villupuram
Burhanpur	Hindupur	Kurnool	Virudhachalam
Shimla	Sikar	Sivakasi	Virudhunager
Shimoga	Siliguri	Sriganganagar	Visakapatnam
Shivpuri	Silvassa	Srikakulam	Vizianagaram
Sholapur	Sindhanur	Srinagar	Vapi
Shrirampur	Singarayakonda	Sultanpur	Wada
Sirohi	Varanasi	Thiruchengode	Wadi
Wardhaman Nagar	Waidhan	Thiruppathur	Wadkhal
Washim	Warangal	Thiruvallur	Thalassery
Yamunanagar	Wardha	Tindivanam	Thane
Yavatmal	Mehboob Nagar	Nagour	Ratnagiri
Sulthan Bathery	Mehsana	Nagpur	Raygada
Sulur	Melur	Namakkal	Renukoot
Surat	Mettupalayam	Nanded	Rewa
Tanjavur	Mettur	Nandigama	Roha
Tenali	Miryalaguda	Nandurbar	Rohtak
Tenkasi	Moga	Nandyal	Rourkela
Tezpur	Moradabad	Narsipatnam	Sadulpur
Tinsukhia	Morbi	Nashik	Sagar
Theni	Morena	Navi Mumbai	Sagara
Shahapur	Mudbidiri	Navsari	Sahibabad
Shahdol	Mumbai	Neemuch	Salem
Shahjahanpur	Muzaffarpur	Pollachi	Salur
Raigarh	Mysore	Pondicherry	Sambalpur
Raipur	Nadiad	Porbander	Sandur
Rajamundry	Nagercoil	Proddatur	Sangagiri
Rajapalayam	Nagole	Pudukottai	Sangamner
Rajkot	Rajnandgaon	Pune	Sangli
Ranipet	Rajpibla	Puri	Saraipalli
Ratlam	Rajsamand	Puttur	Satara
Sendhwa	Ranchi	Rai Bareilly	Sawai Madhopur
Secunderabad	Raichur	Satna

DIRECTORS

As on 31.03.2010

Name :	Mr. Arun Duggal
Designation :	Chairman (Non-independent)
Name :	Mr. R. Sridhar
Designation :	Managing Director
Name :	Maya Shanker Verma
Designation :	Director (Independent)
Name :	Mr. Sumatiprasad M. Bafna
Designation :	Director (Independent)
Name :	Mr. Mukund Manohar Chitale
Designation :	Director (Independent)
Name :	Mr. Adit Jain
Designation :	Director (Independent)
Name :	Mr. S. Lakshminarayanan
Designation :	Director (Independent)
Name :	Mr. Puneet Bhatia
Designation :	Director
Name :	Mr. Ranvir Dewan
Designation :	Director
Name :	Mr. S. Venkatakrishnan
Designation :	Director

KEY EXECUTIVES

Name :	K. Prakash
Designation :	Vice President (Corporate Affairs) and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	93,371,512	41.29
Sub Total	93,371,512	41.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	93,371,512	41.29
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6,428,838	2.84
Financial Institutions / Banks	205,335	0.09
Foreign Institutional Investors	91,931,912	40.65
Sub Total	98,566,085	43.58
(2) Non-Institutions
Bodies Corporate	14,711,690	6.50
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	15,275,653	6.75
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	3,453,714	1.53
Any Others (Specify)	782,014	0.35
Non Resident Indians	318,391	0.14
Overseas Corporate Bodies	50	-
Clearing Members	228,062	0.10
Trusts	235,511	0.10
Sub Total	34,223,071	15.13
Total Public shareholding (B)	132,789,156	58.71
Total (A)+(B)	226,160,668	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	226,160,668	-

BUSINESS DETAILS

Line of Business :	Subject is engaged in business of Hire Purchase, Leasing and Hypothecation Loan Activities.
Services :	v Commercial Vehicle Finance v Passenger Commercial Vehicle Finance v Multi Utility Vehicle Finance v Three wheeler Finance v Tractor Finance v Construction Equipment Finance v Tyre Loan v Engine Replacement Loan v Working Capital Loan v Co-Branded Credit Card v Freight bill discounting

GENERAL INFORMATION

No. of Employees :

13817 (Approximately)

Bankers :

v Abu Dhabi Commercial Bank

v Allahabad Bank

v Andhra Bank

v Axis Bank

v Bank of America N.A.

v Bank of Bahrain and Kuwait B.S.C.

v Bank of Baroda

v Bank of Ceylon

v Bank of India

v Bank of Maharashtra

v Bank of Tokyo - Mitsubishi UFJ

v Calyon Bank

v Canara Bank

v Central Bank of India

v Chinatrust Commercial Bank

v Citibank N.A.

v City Union Bank

v Corporation Bank

v DBS Bank

v Dena Bank

v Deutsche Bank AG

v Development Credit Bank

v HDFC Bank

v ICICI Bank

v IDBI Bank

v Indian Bank

v Indian Overseas Bank

v Induslnd Bank

v ING Vysya Bank

v JPMorgan Chase Bank N.A.

v Karnataka Bank

v Karur Vysya Bank

v Kotak Mahindra Bank

v Lakshmi Vilas Bank

v Mizuho Corporate Bank

v Oriental Bank of Commerce

v Punjab and Sindh Bank

v Punjab National Bank

v Shinhan Bank

v Societe Generale Corporate and Investment Banking

v Standard Chartered Bank

v State Bank of Bikaner and Jaipur

v State Bank of Hyderabad

v State Bank of India

v State Bank of Indore

v State Bank of Mauritius

v State Bank of Mysore

v State Bank of Patiala

v State Bank of Travancore

v Syndicate Bank

v Tamilnad Mercantile Bank

v The Bank of Rajasthan

v The Dhanalakshmi Bank

v The Federal Bank

v The Hongkong and Shanghai Banking Corporation

v The Ratnakar Bank

v The Royal Bank of Scotland N.V.

v The South Indian Bank

v UCO Bank

v Union Bank of India

v United Bank of India

v Vijaya Bank

v Yes Bank

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Redeemable non convertible debentures	48308.787	48267.934
Term loans
i) From Financial institutions / Corporates	1218.842	4479.269
ii) From banks	92993.514	83336.358
Cash credit from banks including working capital demand loan	9203.664	31662.370
Total	151724.807	167745.931

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Fixed deposits [Due within one year Rs.270.507 millions (March 31, 2009 : Rs.17.930 millions)]	1147.951	48.844
Inter corporate deposits [Due within one year Rs.1.442 millions (March 31, 2009 : Rs.463.823 millions)]	1.668	465.716
Subordinated debts
i) From banks [Due within one year Rs. Nil (March 31, 2009 : Rs. Nil)]	3353.000	1480.000
ii) From others [Due within one year Rs.1909.845 millions (March 31, 2009 : Rs.75.037 millions)]	17306.949	13997.625
Redeemable non-convertible debentures from other than banks (Redeemable at par on September 25, 2010) [Due within one year Rs.250.000 millions (March 31, 2009 : Rs.250.000 millions*)]	250.000	250.000
Commercial papers (Short Term)
i) From banks [Due within one year Rs. Nil (March 31, 2009 : Rs.150.000 millions)]	0.000	150.000
ii) From others [Due within one year Rs.250.000 millions (March 31, 2009 : Rs.4675.000 millions)] [Maximum amount raised at anytime during the period :Rs.4825.000 millions (March 31, 2009 : Rs.9695.000 millions)]	250.000	4675.000
Term loan :
i) From banks [Due within one year Rs.1800.000 millions (March 31, 2009 : Rs.4500.000 millions)]*	7064.721	5300.000
ii) From corporates [Due within one year Rs.3500.000 millions (March 31, 2009 : Rs.7100.000 millions)]*	3500.000	7100.000
Total	32874.289	33467.185

*Debentures having put/call option and loans with recall option are considered as due within one year.

Banking Relations :	--
Financial Institutions :	v Kotak Mahindra Prime v L and T Finance v Life Insurance Corporation of India (LIC) v Small Industries Development Bank of India (SIDBI)
Auditors :
Name 1 :	S.R. Batliboi and Company Chartered Accountants
Name 2 :	G.D. Apte and Company Chartered Accountants
Subsidiaries :	v Shriram Asset and Equipment Finance Private Limited [(formerly Shriram Equipment Finance Private Limited (SAEFPL) (from June 04, 2009 upto December 14, 2009)] v Shriram Equipment Finance Company Limited (SEFCL) (from December 15, 2009) v Shriram Automall India Limited (SAIL) (from February 11, 2010)
Enterprises having significant influence over the Company :	v Shriram Holdings (Madras) Private Limited v Shriram Capital Limited v Newbridge India Investments II Limited
Associates :	v Shriram Asset Management Company Limited

CAPITAL STRUCTURE

After 15.06.2010

Authorised Capital : Rs.5350.000 millions

Issued, Subscribed & Paid-up Capital : Rs.2262.081 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
335000000	Equity Shares	Rs.10/- each	Rs.3350.000 millions
20000000	Preference Shares	Rs.100/- each	Rs.2000.000 millions
			Rs.5350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
225517818	Equity Shares Of the above: 1)79,279,236 equity shares of Rs.10/- each allotted for consideration other than cash pursuant to the schemes of amalgamation. ii) 2,957,800 equity shares of Rs.10/- each have been issued under employee stock option scheme.	Rs.10/- each	Rs.2255.178 millions
	Add : Share forfeiture [48,000 equity shares of Rs.10/- each (Rs.5/- each paid up forfeited)]		Rs.0.240 million
			Rs.2255.418 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2255.418	2035.356	2031.594
2] Share Application Money Pending Allotment		0.522	1.380	2.137
3] Stock option outstanding		75.702	213.890	182.664
4] Optionally convertible warrants		0.000	240.000	240.000
5] Reserves & Surplus		36092.210	20675.734	15707.195
6] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		38423.852	23166.360	18163.590
LOAN FUNDS
1] Secured Loans		151724.807	167745.931	115449.487
2] Unsecured Loans		32874.289	33467.185	32280.783
TOTAL BORROWING		184599.096	201213.116	147730.270
DEFERRED TAX LIABILITIES		0.000	0.000	359.221
TOTAL		223022.948	224379.476	166253.081
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		464.451	1342.657	1426.444
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		18560.167	6547.633	13851.202
DEFERREX TAX ASSETS		747.213	263.948	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	12.681	6.653
	Assets under financing activities	179649.525	179535.047	150726.651
	Sundry Debtors	0.000	39.924	24.811
	Cash & Bank Balances	45373.321	57848.969	13742.045
	Other Current Assets	502.486	373.395	295.686
	Other loans and advances	24096.309	4030.600	2612.593
Total Current Assets		249621.641	241840.616	167408.439
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2328.859	2187.631	708.546
	Other Current Liabilities	36757.202	19100.694	13019.384
	Provisions	7655.332	4327.053	2705.074
Total Current Liabilities		46741.393	25615.378	16433.004
Net Current Assets		202880.248	216225.238	150975.435
MISCELLANEOUS EXPENSES		370.869	0.000	0.000
TOTAL		223022.948	224379.476	166253.081

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income from Operations	44028.274	36591.877	24532.868
		Other Income	968.108	719.420	557.400
		TOTAL (A)	44996.382	37311.297	25090.268
Less	EXPENSES
		Raw material consumed	0.000	68.717	25.806
		Personnel expenses	2250.815	2005.360	1254.776
		Operating & other expenses	2725.822	2792.550	1946.322
		Impairment Loss/(reversals) on fixed assets	0.000	56.087	0.000
		Share & debenture issue expenses written off	49.870	0.000	1.374
		Provisions & write offs (net)	4106.486	3057.492	2466.899
		TOTAL (B)	9132.993	7980.206	5695.177
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35863.389	29331.091	19395.091
Less	INTEREST & OTHER CHARGES (D)		22467.893	19776.721	12966.164
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13395.496	9554.370	6428.927
Less/ Add	DEPRECIATION AND AMORTISATION (F)		149.584	348.059	370.597
	PROFIT BEFORE TAX (E-F) (G)		13245.912	9206.311	6058.330
Less	TAX (H)		4514.738	3082.290	2160.065
	PROFIT AFTER TAX (G-H) (I)		8731.174	6124.021	3898.265
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5830.925	2748.621	1224.892
Less	APPROPRIATIONS
		Interim dividend	425.476	203.503	217.020
		Final Dividend	32.518	1.052	0.000
		Proposed final dividend	902.071	814.046	812.542
		Tax on dividend	77.836	34.769	174.974
		Tax on proposed dividend	149.825	138.347	0.000
		Transfer to debenture redemption reserve	1044.208	0.000	0.000
		Transfer to statutory reserve	1750.000	1230.000	780.000
		Transfer to general reserve	880.000	620.000	390.000
	BALANCE CARRIED TO THE B/S		9300.165	5830.925	2748.621
	Earnings Per Share (Rs.)
	- Basic		41.09	30.11	20.26
	- Diluted		40.92	28.64	19.71

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	12335.100	13057.600	13756.600	13447.800
Total Expenditure	2928.100	3090.200	3888.200	3072.800
PBIDT (Excl OI)	9407.000	9967.400	9868.400	10375.000
Other Income	534.200	371.400	366.600	426.900
Operating Profit	9941.200	10338.800	10235.000	10801.900
Interest	5567.900	5850.100	5644.400	5657.100
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	4373.300	4488.700	4590.600	5144.800
Depreciation	28.100	27.500	26.500	26.100
Profit Before Tax	4345.200	4461.200	4564.100	5118.700
Tax	1455.800	1471.600	1550.500	1712.500
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	2889.400	2989.600	3013.600	3406.200
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	2889.400	2989.600	3013.600	3406.200

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	19.40	16.41	15.89
Net Profit Margin (PBT/Sales)	(%)	30.09	25.16	24.69
Return on Total Assets (PBT/Total Assets}	(%)	5.30	3.81	36.17
Return on Investment (ROI) (PBT/Networth)		0.34	0.40	0.33
Debt Equity Ratio (Total Liability/Networth)		6.02	9.79	9.04
Current Ratio (Current Asset/Current Liability)		5.34	9.44	10.19

LOCAL AGENCY FURTHER INFORMATION

CORPORATE PROFILE

Subject is India's asset financing Non Banking Financial Company (NBFC) with total Assets Under Management (AUM) amounting to Rs.291260.000 millions. A flagship company of the Chennai-based Shriram Group, Subject provides accessible and affordable Commercial Vehicle (CV) finance to more than 7 lac customers through 484 branches across India. The Company's shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) with a market capitalisation of over Rs.120000.000 millions.

PROSPECTS AND OPPORTUNITIES

After experiencing one of the worst economic crisis ever during the financial year 2008-09 triggered by the subprime crisis, that plunged even the world's leading economies into financial meltdown, the global economic conditions picked up momentum during the financial year 2009-10, though slowly and with some uncertainty. It was widely feared that the crisis will continue for a long time. Contrary to the general belief, the turnaround has been quicker than what was expected. While it is generally felt that the risk relating to the macro economies have somewhat lessened, there are fears relating to the financial stability of some of the countries. Capital infusion, especially from the private sector, continues to be slow even in the developed economies and coupled with low capacity utilization as well as depressed consumption have forced their governments to continue with the fiscal and monetary stimuli which were extended at the peak of the crisis.

During the crisis period, the flight of capital has been one of the big concerns for the Emerging Market Economies, which saw alarming capital outflows. However, these economies, especially the Asian Emerging Market Economies, led by India and China, exhibited commendable resilience and are now significantly ahead on recovery path as compared to the developed economies. Prompted by the growth of the Emerging Market Economies, the International Monetary Fund has projected that global growth will recover from (-) 0.8 per cent in 2009 to 3.9 per cent in 2010 and further to 4.3 per cent in 2011.

On account of timely support extended through a series of economic measures and close monitoring of the financial health of the economy by the Government of India, the Reserve Bank of India and the other regulatory bodies of the Country, the Indian economy demonstrated a clear momentum of economic recovery. This is achieved despite a deficient monsoon and its consequent adverse impact on the agricultural production. The GDP growth for the fiscal 2009-10 has been estimated at 7.2 per cent as against 6.7 recorded in 2008-09. The recovery has been broad based on account of rebound in industrial production and the resilience of the services sector. In March 2010, the six key sectors i.e. crude oil, petroleum refinery, coal, electricity, cement and finished steel posted an annual growth of 7.2 per cent as against 3.3 per cent in March 2009, boosting prospects of a robust across the board growth.

The growth during the fiscal 2010-11 is widely expected to be higher than that of the year that has gone by. The capacity utilization and consumption are expected to pick up further in the coming months. However, despite commendable stability achieved during the past several months and revival of inflow of capital, there are concerns on account of spiraling inflation and large government borrowings.

The overall Commercial Vehicles segment registered' positive growth at 38.31 percent during financial year 2009-10 when compared to 2008-09. Medium and Heavy Commercial Vehicles segment registered growth at 33.55 per cent and Light Commercial Vehicles grew at 42.67 percent.

The growth of the passenger vehicles segment during 2009-10 was at 25.57 percent as compared to last year. Utility Vehicles grew by 20.88 percent and Multi Purpose Vehicles grew by 40.94 percent. During the year, the Passenger vehicles production crossed 2 million mark.

Despite the turmoil witnessed across the globe as well as in their country, The Company continued to remain in the growth momentum. The Company was able to consolidate its position further and aggressively pursued to tap markets in the rural areas. The Company now has a wide array of financial products tailor made for the Commercial Vehicle segment.

The recent venturing into financing of pre-owned passenger vehicles, multi utility vehicles, tractors, construction equipments as well as three wheelers and the foray into extending secondary finances, such as loans for replacement of tyres, engine and extending of finances to its customers to meet their working capital needs, have met with extra ordinary success in the market place. The co-financing arrangements with the local private financiers throughout the country have helped the Company to strategically expand its reach and the customer base. The relationships they have developed with their customers provide them with opportunities for repeat business and to cross sell their other products as well as derive benefit from customer referrals. Despite difficult and volatile conditions, The Company has been able to borrow from a range of sources at competitive rates to achieve a relatively stable cost of funds primarily due to their improved credit ratings, effective treasury management and innovative fund raising programs. In spite of the volatile financial market conditions The Company continued to be the leader and retained its position as the largest asset financing Non Banking Financial Company in the country.

OPERATIONS

The Company has earned a Profit Before Tax of Rs.13245.912 millions for the year ended March 31, 2010, as against Rs.9206.311 millions of the earlier year, posting an increase of 43.88 % year on year. The Profit After Tax of Rs.8731.174 millions also is 42.57 % more when compared to the previous year, which was Rs.6124.021 millions. The total Income for the year under consideration was Rs.44996.382 millions and total expenditure was Rs.31750.470 millions.

The total disbursements made for financing of commercial vehicles during the year were Rs.146835.900 millions. As on March 31, 2010, the outstanding hypothecation loans were Rs.177374.020 millions.

During the year ended March 31, 2010, the Company mobilised Rs.23265.234 millions through non convertible debentures, Rs.5319.613 millions through subordinated debts, Rs.69992.921 millions through term loans, Rs.7770.000 millions through working capital loans, Rs.250.000 millions through commercial paper, Rs.87568.104 millions through securitisation deals.

SUBSIDIARY

During the Financial Year ended March 31, 2010, the Company incorporated two wholly owned subsidiaries by name, Shriram Equipment Finance Company Limited and Shriram Automall India Limited on December 15, 2009 and February 11, 2010 respectively.

Shriram Equipment Finance Company Limited (SEFCL) received the Certificate of Commencement of Business from the Registrar of Companies, Tamil Nadu on December 23, 2009 and has applied to Reserve Bank of India (RBI) for registration as a Non-Banking Finance Company (Non- Deposit Taking). SEFCL will be engaged in the business of hire purchase / loan financing of equipments, especially construction equipments.

Shriram Automall India Limited (SAIL) received the Certificate of Commencement of Business from the Registrar of Companies, Tamil Nadu on April 16, 2010. SAIL intends to develop pre-owned commercial vehicle hubs across India called "Automalls" and set up a onestop shop catering to the various needs of commercial vehicle owners.

These subsidiary companies are non-material unlisted subsidiaries of the Company.

SHARE CAPITAL

Qualified Institutional Placement

During the year, the Company issued and allotted to 45 qualified institutional buyers 11,658,552 equity shares of Rs.10/- each at a premium of Rs. 490.80 per equity share aggregating to Rs.5838.603 millions under Chapter VIII of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

Employee Stock Options

During the year, the Company allotted 2,347,650 fully paid up equity shares of the face value of Rs.10 each to its employees on exercise of stock Options by them and also granted additional 50,000 Options to eligible senior managerial personnel.

PUBLIC ISSUE OF NCDs

To explore and develop additional source of financing and with a view to meet The Company's business operations, The Company, pursuant to the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 and subject to the necessary approvals, consents and permissions, issued and allotted Secured Non Convertible Debentures, through a public issue and raised a sum of Rs.9999.996 millions.

Considering the potential in raising funds by issue of non convertible debentures (NCDs), The Board, at its meeting held on January 18, 2010, has decided to offer and allot, subject to the aforementioned Regulations and such approvals as may be necessary, secured / unsecured, NCDs not exceeding Rs.5000.000 millions in one or more tranches through another public issue which is expected to open for public subscriptions in May 2010. Management Discussion and Analysis

ECONOMIC OVERVIEW

The year 2009-10 proved to be a year of global economic resurgence. The global economy, after faltering due to recession during 2008-09, witnessed an improvement, mainly on account of infusion of stimulus funds by respective countries. China and India led the recovery from the front, on account of huge domestic demand and continued thrust on infrastructure creation, further propelling demand within the core sectors. The US recovery, largely driven by fiscal and monetary stimulus, is expected to clock a GDP growth of 2.8% in 2010.

As per the advance estimates of GDP for 2009-10 released by the Central Statistical Organisation (CSO), the Indian economy is expected to grow at 7.2% in 2009-10, with the industrial and the service sectors growing at 8.2 and 8.7% respectively, mainly driven by factors like rising per-capita income, urbanisation, favourable demographics, declining household size and increasing job security. Barring any problems caused by the country's fiscal vulnerability, growth is expected to strengthen in subsequent years, as it will continue to reap the benefits of the ongoing opening up of the economy and gradual improvements in infrastructure.

COMMERCIAL VEHICLE (CV) INDUSTRY OVERVIEW

The performance of India's new CV industry is directly linked to the country's macroeconomic growth, especially industrial growth. In contrast, the correlation of the used CV sales to the macro economy is much less, driven in part by replacement demand and by the aspiration of truck drivers to graduate to a CV owner.

During 2009-10, the CV industry posted a rebound with new vehicle sales rising 34.6% y-o-y (in volume terms) as against 22% down during 2008-09. Typically, this segment has strong linkages with overall economic, agricultural growth and especially industrial activity levels (industrial production increased sharply by 16.7% in January 2010). The growth in new CV sales is expected to remain strong in FY11 on account of heightened manufacturing activity, buoyant consumption, evolving distribution and service networks, easy availability of finance and road development programmes. In the wake of the above factors, Indian Medium and Heavy Commercial Vehicle (MandHCV) sales are expected to grow at a CAGR of 13% over FY09-12E.

The pre-owned CV segment is expected to account almost 70% of the total CV sales. The sector is largely catered to by the unorganised sector as the industry consists largely of Small Truck Owners (STOs) that typically own less than five trucks, and have no banking habits. CV financing in India is largely based on the profile of the borrowers and not solely on the asset class/quality. As a result, traditionally the large banks and financial companies have funded fleet owners. Since the cost of new CVs is much higher than what STOs can afford, the financing to pre-owned segment has been largely dominated by private financiers in the unorganized segment. Lack of financial support coupled with lack of banking culture has contributed to the high-risk perception of the segment. As a result, the STOs have been largely limited to pre-owned trucks.

The demand for pre-owned CVs is usually driven by various factors such as technological changes, launch of new vehicles, changing freight patterns, evolving scale of fleet owners and financial/taxation implications. Normally, a CVs ownership changes more than once, and is thereby re-financed an average of four times in its lifespan with the first change of ownership happening in the 4th or 5^th year of purchase. Given the fact that a large number of CVs sold during FY05-07 are expected to witness probable change in ownership in the near period and would be available for refinancing over FY10-12, the pre-owned CV industry is expected to witness bigger growth.

CV FINANCE INDUSTRY OVERVIEW

CV sales (number of vehicles) are well below car sales in India (CVs are around 50% of the value of car sales). However, the size of the financing markets for the two segments are quite comparable due to the significantly higher finance penetration in the commercial vehicle segment (over 95% of the new sales are financed). Loanto- value ratios for commercial vehicles range between 70-75%, with typical loan durations of around four years.

KEY GROWTH DRIVERS

CVs sold during boom of 2004-07 will start hitting the resale market

A large percentage of CV fleet (of medium and large fleet owners) changes ownership after 4-5 years of vehicle purchase, as financial, technological and operational factors compel the operators to sell them. Due to this, over 15 lac CVs sold during 2004-07 are expected to be available for refinancing.

Growing freight capacity

Due to the upsurge in economic activities and strong momentum in GDP growth, freight capacity is expected to increase at a healthy rate. Generally, freight capacity growth is 1.25-1.5 times the GDP growth. This high growth in freight capacity will create strong demand for CVs in the system.

Increased aspirations of drivers to become entrepreneurs

The uptick in freight rates backed by growing freight capacity provides an opportunity for drivers to become entrepreneurs, which in turn will enhance demand for preowned CVs.

Ban on overloading

The ban on overloading by Supreme Court will significantly enhance the demand for CVs in the system.

Legislative measures to propel replacement demand

Legislative pressure on banning 15-year old trucks is likely to trigger the replacement boom. Transport associations have suggested Voluntary Retirement Schemes for old trucks. If these old trucks are to be replaced, it will create a trigger in replacement demand for 11 lac CVs.

Massive investments in the roads and highways sector to support growth

Government investments in the roads and highways sector is expected to support growth in the CV industry. According to the NHAI, India's road network is nearly'33 lac kms. Approximately 65% of freight and 85% of passenger traffic is carried by the road network. Such massive investments will be positive for overall demand.

CONSTRUCTION EQUIPMENT INDUSTRY

The construction equipment industry is estimated to be worth approximately USD 6 billion (~Rs.300000.000 millions), with an annual growth forecast of 25-30%. The ongoing thrust by the Indian government to develop large scale infrastructure projects coupled with sustained funding from public-private partnerships is driving the demand for a large bouquet of construction equipment. The emergence of Small Construction Equipment Operators (SCEOs) like crane operators or dumper drivers, etc. is gaining momentum. The scope for expansion in this space is immense; given that majority of asset purchases are financed. Further, there is limited access to funding for small and medium sized contractors, more so now since the few MNCs financing the segment have wound up their business in India. The size of the market, limited competition for financing small and medium sized contractors and the prospect of providing financing options to contractors through the lifecycle of the equipment are factors that make this industry a huge opportunity going forward.

PERFORMANCE OVERVIEW

The year 2009-10 has been a milestone year for the Company. While on one hand, the Company successfully scaled its operations through improved reach and streamlined business verticals to cater successfully to an ever-growing consumer base; on the other hand, it undertook funding initiatives, mitigating interest risk to a large extent. In the wake of the improved business environment, the major focus was to strengthen the key areas in order to support the potential growth offered by the industry in the coming years.

Strengthening a knowledge-led organization

During 2008-09, the Company initiated steps to create a knowledge-led organisation. It resulted in the creation of dedicated knowledge verticals - including Customers, Territory and Products. During 2009-10, the key focus was to further strengthen the knowledge proposition by appointing credible and reputed intellectual capital from the industry as well as by further standardising the processes by inducting world-class technology platforms across branches and regions for better and timely access to real-time information. This resulted in cementing the Company's lending as well as collection processes and at the same time, enabled the Company to keep the delinquency levels at check despite growing volumes.

Creating dedicated product verticals

The Company has witnessed rapid growth in the past decade. The growth has predominantly come from the pre-owned CV segment, where the Company has successfully created a reputed clientele in STOs. With thorough customer knowledge, the company became a leader in preowned CV segment. Since some of its existing clients also ventured into newer businesses like subcontracting construction activity, it made good business sense to extend the relationship into newer and related product verticals. However, in order to create a scalable organisation, it was necessary to have credible and in-depth product knowledge. To strengthen each product vertical, the Company created dedicated product teams, each headed by an industry expert, having requisite experience in specific product. Each product vertical is considered to be a separate profit centre, thereby further cementing the multi-product organisation structure.

Construction equipment business

The Company initiated the financing of construction equipment like forklifts, cranes, loaders etc. However, in the wake of increased infrastructure and construction activity, this segment witnessed a sharp surge in demand in the past two years. In the construction equipment segment, although the Company caters to a similar consumer class (STROs), but the product knowledge required is totally different from CV financing. Therefore, the Company floated a 100% subsidiary consisting of a separate management team, comprising of professionals from the realm of construction equipment finance. The construction equipment portfolio under management as on March 31, 2010 would continue to remain in the Company's books (i.e. Shriram Transport), while the new company - Shriram Equipment Finance Company Limited would generate and maintain its own assets in the construction equipment financing space.

Automalls

Similarly, the Company also identified an attractive opportunity to monetise its reach through an initiative called Automalls. The Company has initiated measures to develop pre-owned CV hubs across India called 'Automalls' through a wholly owned subsidiary - Shriram Automall India Limited. Automalls will provide a ready platform for buying and selling of pre-owned CVs. The platform would be used by the Company to earn a fee based income as well as strengthen its product valuation knowledge. The first Automall is expected to begin operations by second quarter of this year. Another 50-60 Automalls are expected to come up over the next 12-18 months. The Company is also planning to set up a workshop at these Automalls, where some of the CVs will be refurbished and sold under the brand name 'Shriram New Look'. The Company is also setting up electronic touch screen kiosks (under the brand name 'One Stop') across these Automalls and branch offices, through which its customers will be able to access real-time data on pre-owned CVs available for sale.

Purchase of CV and construction equipment loan portfolio

During the year, the Company purchased hypothecated loan outstandings of CVs and construction equipment of GE Capital Services India and GE Capital Financial Services aggregating to approximately Rs.11000.000 millions. Given the reach and collection ability of the Company, the portfolio would be a viable and profitable investment.

Fund raising initiatives

In order to create a sustainable and scalable business model, it was very important to mitigate the key risks, especially those relating to interest and capital availability. The Company undertook the following initiatives for the same:

Placement of Non-Convertible Debentures (NCD) with domestic investors

During the year, the Company successfully placed Rs.10000.000 millions of NCD with domestic investors in a bid to diversify its liability profile. It was an indication of the strong credibility that the Company enjoys in the market that the issue was oversubscribed on the first day itself.

Qualified Institutional Placement (QIP)

The Company raised Rs.5838.600 millions through the QIP route during the year. The Company allotted 116.58 lac equity shares of the face value of Rs.10 each to domestic and international Qualified Institutional Buyers (QIB) resulting in a dilution of around 5.2%. The placement of shares was effected at Rs.500.80 per share. The net proceeds from the offering will primarily be utilised to accelerate the expansion of the core CV financing business as well as for fresh investments in the equipment financing and vehicle trading ventures.

Market expansion initiatives

The total number of branches for the Company stood at 484 across India as on March 31, 2010. In terms of inorganic growth, the Company has been instrumental in the participation of private financiers into the organised segment. As a result, it not only empowered the private financiers through a fiduciary relationship to increase their reach but also enabled the STOs funded by private financiers, to access affordable finance to grow. As on March 31, 2010, the Company has tie-ups with more than 500 private financiers.

During 2010, the Company introduced touch screen kiosks (One Stop) as a replacement for its successful campaign - Truck Bazaars', in the near term. One Stop would facilitate the prospective clients to access real-time information on the vehicles intended to be sold by the current owners. These One Stops have already been launched in Tamil Nadu and will be introduced in other states in a phased manner. As a result, it will replace the need of holding once-a- month event like Truck Bazaar, resulting in lower marketing cost as well as wider reach.

FINANCIAL PERFORMANCE

During the year 2009-10, the Company's total income increased by 21% to Rs.44996.400 millions, as compared to Rs.37311.300 millions in 2008-09. The Company's PAT also increased by 43% to Rs.8731.200 millions in 2009-10, from Rs.6124.000 millions in 2008-09. The Gross NPAs and Net NPAs for the year 2009-10 were 2.83% and 0.71% respectively. The Company's net interest margin on the ADM stood at 7.28%. The Company's net interest income increased by 29% to Rs.22213.000 millions in 2009-10 as against Rs.17278.000 millions in 2008-09.

OUTLOOK

With buoyant demand for CVs on account of accelerated consumer demand coupled with improved manufacturing activity and large infrastructure spend, the Company is looking forward to tapping growth in the existing and related products, by catering to a similar customer segment. In the process, the Company also aims to reduce the controllable facets of all the associated risks, particularly those relating to funding and delinquency. The Company aspires to reach AUM of over Rs.500000.000 millions by 2012-13, in the wake of strong economic indicators and a sustainable, scalable business model.

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2011

(Rs. in millions)

Particulars	Unconsolidated
	Quarter Ended	Year Ended
	31.03.2011 (Unaudited)	31.03.2011 (Audited)
1 Income from Operations	13376.800	52301.500
Other Operating Income	71.000	295.600
Total	13447.800	52597.100
2 Expenditure
Increase/Decrease in stock of vehicles	--	--
Purchase of vehicles	--	--
Employees Cost	848.400	3582.100
Depreciation	26.100	108.200
Provisions and write offs	1216.000	5547.700
Brokerage	166.400	793.500
Other expenditure	842.000	3056.100
Total	3098.900	13087.600
3 Profit from Operations before Other Income and Interest	10348.900	39509.500
4 Other Income	426.900	1699.400
5 Profit before Interest (3+4)	10775.800	41208.900
6 Interest	5657.100	22719.600
7 Profit before Tax (5-6)	5118.700	18489.300
8 Tax expenses (including Deferred Tax)	1712.500	6190.500
9 Profit after tax(7-8)	3406.200	12298.800
Share of Associate	--	--
10 Consolidated Profit after Tax	3406.200	12298.800
11 Paid up Equity Share Capital (Face Value of Rs.10/- per share)	2261.800	2261.800
12 Reserves (excluding Revaluation reserves)	--	46746.600
13 Earning Per Share (Not annualised)
Basic (Rs.)	15.06	54.49
Diluted (Rs.)	15.04	54.41
14 Public Shareholding
- Number of shares	132789156	132789156
- Percentage of shareholding	58.71%	58.71%
15 Promoters and promoter group Shareholding
a) Pledged/Encumbered
-Number of Shares	--	--
-Percentage of Shares(% of total share holding of promoters and promoter group)	--	--
-Percentage of Shares(% of total share capital of company)	--	--
b) Non-encumbered
-Number of Shares	93371512	93371512
-Percentage of Shares(% of total share holding of promoters and promoter group)	100.00%	100.00%
-Percentage of Shares(% of total share capital of company)	41.29%	41.29%

Statement of Assets and Liabilities as on March 31, 2011

(Rs. in millions)

Particulars	Unconsolidated
	Year Ended
	31.03.2011 (Audited)
Shareholders' Funds
Share capital	2261.800
Share application money pending allotment	--
Stock option outstanding	35.500
Reserves and surplus	46746.600
Loan Funds
Secured loans	148693.800
Unsecured loans	50123.400
TOTAL	247861.100
Fixed assets	384.300
Investments	36507.000
Deferrred Tax Asset	1536.900
Current Assets, Loans and Advances
- Inventories	--
- Asset under financing activities	198656.100
-Cash and Bank Balances	36251.200
-Other current assets	579.200
Other loans and advances	41800.400
Less : Current Liabilities and Provisions
Current liabilities	55720.500
Provisions	12502.900
Miscellaneous expenditure (to the extent not written off or adjusted)	369.400
TOTAL	247861.100

AUDITED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED MARCH 31, 2011

(Rs. in millions)

Particulars	Unconsolidated
	Quarter Ended	Year Ended
	31.03.2011 (Unaudited)	31.03.2011 (Audited)
1 Segment Revenue:
a) Financing Activities	13792.000	53973.800
b) Trading Activities	--	--
c) Fee based Activities	--	--
d) Unallocated reconciling items	82.700	322.700
Total Income	13874.700	54296.500
2 Segment Results (Profit before tax and after interest on Financing Segment)
a) Financing Activities	5040.100	18181.300
b) Trading Activities	--	--
c) Fee based Activities	--	--
d) Unallocated reconciling items	78.600	308.000
Total	5118.700	18489.300
Less: Interest on Unallocated reconciling items	--	--
Total profit before Tax	5118.700	18489.300
3 Capital Employed
a) Financing Activities	46598.400	46598.400
d) Unallocated reconciling items	2076.100	2076.100
Total	48674.500	48674.500

Notes:

The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on April 29, 2011.

The above unconsolidated and consolidated results have been audited by the Statutory Auditors of the Company.

The Board of Directors have recommended a final dividend of Rs.4/- per equity share (40%) for the financial year 2010-11, which is in addition to the interim Dividend of Re.2.50/- per equity share (25%) already paid.

The results include the financials of Shriram Equipment Finance Company Limited, Shriram Automall India Limited, the wholly owned subsidiaries and 40% share of loss in the associate company, Shriram Asset Management Company Limited.

During the quarter ended March 31, 2011, the Company received four investor complaints. These complaints had been redressed and there were no outstanding complaints as on March 31, 2011.

The figures for the previous period/ year have been regrouped / rearranged wherever necessary to conform to the current period/year presentation.

Contingent Liabilities not provided for

Particulars	31.03.2010 (Rs. in millions)
a. Disputed income tax/interest tax demand contested in appeals not provided for [Against the above, a sum of Rs.2.966 millions has been paid under protest]	15.726
b. Demands in respect of Service tax [Amount of Rs.1.500 millions has been paid under protest ]	31.500
c. Disputed sales tax demand [Amount of Rs.6.392 millions has been paid by the Company]	41.233
d. Guarantees issued by the Company and outstanding	--
Future cash outflows in respect of (a), (b) and (c) above are determinable only on receipt of judgments / decisions pending with various forums/authorities.

FIXED ASSETS:

TANGIBLE ASSETS

v Land - Freehold

v Buildings

v Plant and Machinery

v Furniture and Fixtures

v Vehicles

v Leasehold Improvement

INTANGIBLE ASSETS

v Computer Software

WEBSITE DETAILS:

OVERVIEW:

Subject is India's player in commercial vehicle finance that was established in the year 1979.The company has a network of 484 branches and service centers. They are one of the largest asset financing NBFCs in India with a niche presence in financing pre-owned trucks and Small Truck Owners (STOs). 

They are a part of the "SHRIRAM" conglomerate which has significant presence in financial services viz., commercial vehicle financing business, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance products and units of mutual funds. Apart from these financial services, the group is also present in non-financial services business such as property development, engineering projects and information technology.

Their Company was incorporated in the year 1979 and is registered as a Deposit taking NBFC with Reserve Bank of India under Section 45IA of the Reserve Bank of India Act, 1934.

STFC decided to finance the much neglected Small Truck Owner. Shriram understood the power of 'Aspiration' much before marketing based on 'Aspiration' became fashionable. Shriram started lending to the Small Truck Owner to buy new trucks. But they found a mismatch between the Aspiration and Ability. The Truck Operator was honest but the Equity at his command was not sufficient to support the credit levels required to buy a new truck.

They did not have the heart to send the Truck Operator back empty handed; they decided to fund Pre-owned Trucks. This was the most momentous decision that they made. What followed was Sheer magic.

From Driver to Owner, even if only of a Pre-owned Truck and from Pre-owned Truck to the New Truck, they have been with him in his journey of Prosperity as he has been their partner in their road to success and leadership.

For them at Shriram, credit-worthiness of the Small Truck Owner has always been an article of faith. This faith has guided their journey from their pioneering days in financing Small Truck Owners to the present day leadership. Today they are not only the leader in Truck Finance; they are also India's largest Asset Based Non-Banking Finance Company.

The inability of the economists to capture data relating to the economic activity of the informal sector has resulted in its neglect at the policy-making levels in the government.

The distribution of Truck Ownership being scattered among a large number of individuals has resulted in this very important group being missed by the institutional radar.

It is estimated that 80% of trucks in the country are in the hands of individuals.

THE JOURNEY

Their journey has seen them making several innovations while they stood at the very edge of Organized Finance. The Banks and Institutions were guided by the Economists' vision; the Small Truck Owner who always fell on their blind side was given the miss.

With a track record of about 30 years in this business, they are among the leading organized finance provider for the commercial vehicle industry with a focus to provide various credit facilities to STOs. They have also added passenger commercial vehicles, multi-utility vehicles, three wheelers, tractors and construction equipment to their portfolio, making them a diversified, end to end provider of finance solutions to the domestic road logistics industry. Besides financing commercial vehicles (both new and pre-owned) they also extend finance for tyres, engine replacement and working capital. They also provide ancillary services such as freight bill discounting besides offering co-branded credit cards.

Their pan-India presence through their widespread network of branches has helped in their overall growth over the years. As on March 31, 2010 they had 484 branches and tie up over 500 private financiers across the country. As on March 31, 2010 their total employee strength was 14254, including more than 7,715 product executives and credit executives who are colloquially referred to as their field force.

They have demonstrated consistent growth in their business and profitability. Their assets under management have grown by a compounded annual growth rate (CAGR) of 40.68% from Rs.74365.100 millions in FY 2006 to Rs.291260.800 millions in FY 2010. Their total income and profit after tax increased from Rs.9086.700 millions and Rs.1416.400 millions in FY 2006 to Rs.44996.400 millions and Rs.8731.200 millions in FY 2010 at a CAGR of 49.17% and 57.57%, respectively.

MEDIA RELEASES:

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST. MARCH, 2011

Friday, 29th April, 2011, Mumbai: The Board Meeting of Shriram Transport Finance Company Limited (STFC), the largest asset financing NBFC in the country, was held today to consider the audited financial results for the year ended 31^st March, 2011.

Financials (Standalone):

Fourth Quarter ended 31st. March, 2011:

The Net Interest Income for the fourth quarter ended 31^st March, 2011 increased by 25.63% to Rs.8118.100 millions as against Rs.6461.900 millions of the same period previous year. The profit after tax rose by 28.82% to Rs.3406.200 millions as against Rs.2644.200 millions recorded in the same period earlier year. The earning per share (basic) surged by 25.92% to Rs. 15.06 from Rs 11.96 recorded in the same period earlier year.

Year ended 31st. March, 2011:

The Net Interest Income for the year ended 31^st March, 2011 increased by 39.91% to Rs.31025.400 millions as against Rs.22175.500 millions of the previous year. The profit after tax rose by 40.86% to Rs.12298.800 millions as against Rs.8731.200 millions recorded in the earlier year. The earning per share (basic) for the year ended surged by 32.61% to Rs.54.49 from Rs.41.09 recorded in the earlier year.

Dividend:

The Board has recommended a final dividend of Rs.4.00 (40%) per share. This is in addition to the interim dividend of Rs. 2.50 (25%) per share declared at the Board Meeting held on 27th. October, 2010 making the total dividend of Rs. 6.50 (65%) per share as against the total dividend of Rs. 6.00 (60%) per share paid for 2009 - 10.

Assets under Management:

Total Assets under Management as on 31st March, 2011 increased by 23.91% to Rs.360860.000 millions as compared to Rs.291220.000 millions as on 31st March, 2010.

About Shriram Transport Finance Company Limited

Shriram Transport Finance Company Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Stock Broking and Distribution businesses. Established in 1979, Shriram Transport is today the largest asset financing NBFC in the country and holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets. It has PAN India presence with 488 branch offices. Based at Mumbai, it manages assets over Rs.360000.000 millions and has a live customer base exceeding 7,50,000.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.38
UK Pound	1	Rs.73.31
Euro	1	Rs.63.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		70

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.