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Executive Summary

Head Office Telephone No. Registered Office Incorporation Details Listed at C-2 Level G Block 3rd Floor, Wockhardt Towers, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 +91-22-40959595 123, Angappa Naicken Street, Chennai 600 001 Tel.: 044 25341431 No 7874 of 1979 dated 30th June 1979 Bombay Stock Exchange Ltd. National Stock Exchange of India Ltd. Madras Stock Exchange Ltd.

Niche in Pre-Owned Commercial Vehicle.  Largest Asset Financing NBFC with 25% market share in pre owned truck financing and approx 15 % in new truck financing.  Strategically present in high yield pre-owned CV financing with expertise in loan origination & valuation of pre-owned trucks and collection.  Nation-wide presence and unmatched reach, across 6 Regions, 75 division and around 470 Centers having more than 11,000 employees including 6500 field officers, combined with strong Customer loyal base of more than 6.00 lacs and a rigorous collection process developed over past 29 years.  Total Assets under Management close to Rs 228 bn.  Strategic Equity investments from reputed Equity and institutional investors such as Chrys Capital, CS Holdings, Citicorp Finance, Axis Bank, Goldman Sachs, Tiger Global, Blue Ridge, Quantum.  Primarily engaged commercial vehicles financing to Small Road Transport operators (SRTOs), which qualifies under Priority Sector lending.

History and Background


Our Company was formed with an objective to provide hire purchase and lease finance for the medium and heavy commercial vehicles to individual truck operators. The Objective was to empower the small intending truck owner the man who had been an employee all his life and who now wanted to turn entrepreneur. It was considered Daring because of the industry wisdom decreed only the financing of large fleet owners or individuals with a sizable net worth as safe. On the other hand, the financing of small intending entrepreneurs was considered risky on the grounds that they had little to show for their liquidity or credibility. STFCL ventured to go against conventional wisdom. Having completed more than 29 years in existence, STFCL is proud to state our contrarian decision helped create a niche and translated into pride-enhancing results. Consider this: y Shriram transport is Indias largest financier in the niche of preowned trucks y The Company pioneered the virtual elimination of the high risk perception associated with financing Small Road Transport Operators and pre-owned trucks.

y The Company successfully enhanced an awareness of the creditworthiness of small road Transport operators amongst commercial banks and financial institutions. The Company is not only influenced a higher inflow of institutional credit for financing pre-owned trucks and also helped to make credit available at competitive rates.

Vision, Mission and Values


Mission statement y Helping create wealth. y Empowering people through prosperity. y Putting people first. The Shriram Group set out with the objective of reaching out to the common man with a host of products and services that would be helpful to him in his path to prosperity. Over the decades, the Group has achieved significant success in executing this objective and has created a tremendous sense of loyalty amongst its customers. Efficiency in operations, integrity and a strong focus on catering to the needs of the common man, by offering him high quality and costeffective products and services, are the values driving the organization. These core values are deep-rooted within the organization and have been strongly adhered to over the decades. The group prides itself on its perfect understanding of the customer. Each product or service is tailor-made to perfectly suit the needs of the customer. It is this guiding philosophy of putting people first that has

brought the Group closer to the grassroots and has made it the preferred choice for all financing requirements amongst the customers.

Shriram Group and Company


Our Company is a part of a wider conglomerate The Shriram Group, a Leading Corporate house based in South India. The Group is a major player in Indian financial services sector having several joint ventures /associations with Indian and foreign partners. Currently the group enjoys a Fund Base of close to Rs 35,000 Crores.

Core competencies:
The Group has identified its core competencies in the financial sector.

Commercial Vehicle Finance - Shriram Transport Finance Company Limited With the Indian economy on the fast lane, the trucking and truck financing business are cruising at high speed. The Indias Largest Asset Financing NBFC was established to finance Small Road Transport Operators(SRTO) who own and operate over 75% of trucks in India. Credit support to the majority of them has been inadequate, expensive and inequitable. STFC is changing all that. Engaged exclusively in financing of Commercial Vehicles, both new as well as old, STFC, as of now has 5,00,000 outstanding truck contracts. The Assets under management is around Rs.15,000 Crores (US$ 3.70 Bn ). STFC also enjoys major presence position in financing of Used Vehicles. STFC assists its customers through the entire transportation business lifecycle. These include: Finance for purchase of vehicle, working capital, purchase of tyres, vehicle repairs etc. Assistance is also provided in finding finance by pledging existing vehicle, getting freight loads, discounting load challans, exchanging existing vehicle and buying reconditioned or new vehicle, among others.

Life Insurance - Shriram Life Insurance ( as JV with Sanlam, South Africa) was launched in January 2006. India currently accounts for 16% of the world's population.70% of this population is below 35 years of age. Between 2001 and 2006, Indian demography has changed with the higher income classes (more than INR 70,000 per annum) constituting about 79%. This represents huge market for insurance products. This is amply reflected in the growth of insurance industry in the last couple of years. However, this growth has not really reached the Rural and Semi Urban areas. Shriram Group with its network of branches particularly in these areas enjoys an unique opportunity for reaching out to wider audience and sustain the growth story of the insurance industry.

Most of the products of Shriram Life were designed by advisors working in the field and based on need analysis done through Intense Market Research. Presently the company already offers various products catering to various situations and strata of society. Consumer & Enterprise Finance - Shriram City Union Finance Limited The Shriram Group entered the Consumer Finance business in the year 2002. The Companys financing is backed by lines of credit extended by various banks - UTI Bank, Standard Chartered, Canara Bank, to mention a few. Shriram City makes money available to common people, when they need it most - through Personal Loans, Consumer Loans, Vehicle Loans, Jewel Loans, Small and Medium Scale Enterprise Finance etc. The Company, with a commanding presence in South India, has now entered Northern and Western Regions of India.

Financial Product Distribution - Shriram Fortune Solutions Ltd.


The company has been recently set up as a Nationwide Distribution Network for Investment & Insurance Products. The Company distributes Mutual Funds, Debentures, Fixed Deposits, Life and Non-Life Insurance Products of many Principals, including Companies of the Shriram Group. The Company taps into the 40-lakh strong Pan-

India customer base of the Shriram Group, as well as new clients through newer channels. Creating a huge demand for Investment & Insurance Products, it is fast emerging as a proven delivery network. These are unique value propositions for Insurance and Investment companies, whose products Shriram Fortune distributes. For now, Shriram Fortune distributes Life Insurance products of Shriram Life Insurance Company. The Company distributes Mutual Funds of all Asset Management Companies (AMCs) and Non-Life Insurance Products including Motor Insurance, Health Insurance, Travel Insurance, Personal Accident Insurance, Home Insurance, Shop Insurance Policies of all major General Insurance Companies in India. The Products are promoted by a sales force of nearly 500, assisted by over 80,000 Agents, and through a nationwide Branch network. The Company also mobilizes funds through Debentures, Bonds and Fixed Deposits.

Retail Stock Broking - Shriram Insight Share Brokers Ltd.


The Company has forayed into the commodities market with a trading-cum-clearing membership on the Multi Commodity Exchange (MCX) and the National Commodities and Derivatives Exchange (NCDEX) through a 100% subsidiary. Shriram Insight is firmly focused in the rapidly growing High Net worth Individual (HNI) and Retail space. The Company has an active client base of over 80,000. Shriram Insight operates through 320 Branches located in over 100 cities and towns across India, with 450 trading terminals. The Company offers a wide range of services, including equities broking, derivatives broking, margin financing, commodities broking, depository services. Shriram Insight has built one of the largest captive computer networks with 70 leased lines and 250 ISDN lines. The Company uses the CTCL based front-office software developed by Financial Technologies, which provides stable connectivity and online risk management and surveillance features. With a centralized risk management system and a stringent compliance process, the company has managed to keep client defaults and disputes at near zero level.

Chits Funds - Shriram Chits


It is the largest chit funds entity in India. The trusted household Savings & Investments service provider, a pioneer in Micro Finance in India. The inexorable growth registered by Shriram Chits in recent years not only indicates the usefulness of this ancient instrument, but it is also a reflection of the customers' trust in the Shriram Group. The Annual Auction Turnover of our Chit Companies is touching Rs.3,000 crores.(US$ 715 million Shriram Chits boasts the best record for timely disbursement of funds among all Chit Funds and offers excellent customer service for a community of 22,00,000 Subscribers. Shriram Chits started operations in 1974 with a single branch. Today, our Chit Companies operate in Andhra Pradesh, Karnataka, Maharashtra Puducherry (Pondicherry) and Tamil Nadu, through 465 Branch offices, employing 6,000 people and 65,000 Agents. Using stateof-the-art technology and a transparent accounting system, Shriram Chits has transformed this 3,000 year old instrument into an attractive, contemporary alternative to the Banking System

Property Development - Shriram Properties Limited


It was established in 1997 with a mission of creating splendid homes and amenable living spaces. The property development business was started with a modest equity capital and a marketing philosophy that focused entirely on the customers needs in terms of design layouts, amenities, security, cost etc., and today Shriram Properties is a pioneer in property development business in South India. Sustained focus on quality, excellence & diligence in execution of projects by Shriram Properties has gone on to create an indelible impression of trust and dependability in the minds of home seekers. In 2003 Shriram Properties limited went through the process of certification and obtained ISO 9001:2000 certificate, signifying international standards of business practices. The company has now commenced operations in Chennai, Coimbatore, Kolkata and Hyderabad. The company envisions its presence in all happening

places within the country and abroad. The group has recently entered life insurance business with a joint venture with Sanlam Life Insurance, South Africa.

STFCs Place in the group The Company has been the groups flagship in Truck financing with Core Competency in finance to retail customers to acquire pre - owned commercial vehicles. It has been a major player in this sector for the past 29 years. Our Business Our Business model, to finance the credit-starved segment of transporters and build longstanding relationships with them continues to be compelling for us. Shriram finances Pre-Owned vehicles under Hire Purchase, Financial Lease or under Hypothecation Scheme. It finances only up to 50% of the market value of the vehicle as determined by us. Norms for Maximum lending amount are in place based on model, make, accident case, engine condition etc of the vehicle. Shriram lends to truck operators who have a proven track record with Shriram or is introduced by a Guarantor who has a proven track record with the Company. The Company concentrates on lending to Small Road Transport Operators (SRTOs) i.e., borrowers having not more than 5-6 trucks. The Company only finances Trucks.

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