Shriram Transport Finance Company Limited: 35Th Annual Report 2013-14

Shriram TranSporT FinanCe Company LimiTed i 35Th annuaL reporT 2013-14
Contents
Corporate information 1
annual performanCe trends 2
our reaCh 3
management disCussion & analysis 6
direCtors’ report 12
report on Corporate governanCe 20
CertifiCate on Corporate governanCe 39
Business responsiBility report 40
finanCial seCtions 55
Forward Looking STaTemenTS

In this Annual Report, we have disclosed forward looking information to enable investors to comprehend our prospects and take in-
formed investment decisions. This report and other statements – written and oral – that we periodically make, contain forward looking
statements that set out anticipated results based on the management’s plans and assumptions. We have tried wherever possible to
identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of
similar substance in connection with any discussion of future performance.
We cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in assump-
tions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks
or uncertainties materialise or should underlying assumptions prove inaccurate, actual results could vary materially from those antici-
pated, estimated or projected. Readers should bear this in mind.
We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events
or otherwise.
CORPORATE
INFORMATION
Corporate Identification No. (CIN) L65191TN1979PLC007874

BOARD OF DIRECTORS lISTED AT
Chairman (Non – Executive)
Arun Duggal National Stock Exchange of India Ltd.
BSE Ltd.
Managing Director
Umesh Revankar
INSTITuTIONS
Directors
Maya Shanker Verma (Independent) Life Insurance Corporation of India (LIC)
Sumatiprasad M. Bafna (Independent) Small Industries Development Bank of India (SIDBI)
S. Lakshminarayanan (Independent) IDFC Ltd
R. Sridhar Citicorp Finance (India) Ltd
Puneet Bhatia
Ranvir Dewan (upto September 02, 2013)
Amitabh Chaudhry (Independent) BANkERS
Kishori Udeshi (Independent)
Abu Dhabi Commercial Bank JP Morgan Chase Bank N.A.
Gerrit Van Heerde (w.e.f. May 15, 2014)
Allahabad Bank Karnataka Bank
COMPANY SECRETARY Andhra Bank Karur Vysya Bank

Australia and New Zealand Banking Group Ltd Kotak Mahindra Bank
Vivek Achwal Axis Bank Lakshmi Vilas Bank
Bank of America N.A. Mizuho Corporate Bank
AuDITORS
Bank of Bahrain & Kuwait B.S.C. Oriental Bank of Commerce
M/s. S. R. Batliboi & Co.LLP, Chartered Accountants Bank of Baroda Punjab & Sind Bank
M/s. G. D. Apte & Co., Chartered Accountants Bank of Ceylon Punjab National Bank
Bank of India Shinhan Bank
ShARE TRANSFER AgENTS
Bank of Maharashtra Societe Generale Corporate &
Integrated Enterprises (India) Limited Bank of Tokyo - Mitsubishi UFJ Investment Banking
2nd Floor, ‘Kences Towers’, No. 1, Barclays Bank PLC Standard Chartered Bank
Ramakrishna Street,
Canara Bank State Bank of Bikaner & Jaipur
North Usman Road, T. Nagar,
Chennai - 600 017. Central Bank of India State Bank of Hyderabad
Tel: 044 2814 0801/02/03 State Bank of India
Fax: 044 2814 2479 Citibank N.A.
City Union Bank State Bank of Mysore
DEBENTuRE TRuSTEE Corporation Bank State Bank of Patiala
IDBI Trusteeship Services Limited DBS Bank Ltd State Bank of Travancore
Asian Building, Ground Floor, Dena Bank Syndicate Bank
17, R. Kamani Marg, Ballard Estate,
Deutsche Bank AG The Federal Bank
Mumbai – 400 001.
Development Credit Bank The Jammu & Kashmir Bank
REgISTERED OFFICE Dhanlaxmi Bank The Ratnakar Bank

HDFC Bank The South Indian Bank
Mookambika Complex, UBS AG
Hongkong and Shanghai Banking Corporation
3rd Floor, No. 4,
ICICI Bank UCO Bank
Lady Desika Road,
Mylapore,Chennai – 600 004. IDBI Bank Union Bank of India
Indian Bank United Bank of India

hEAD OFFICE United Overseas Bank
Indian Overseas Bank
IndusInd Bank Vijaya Bank
Wockhardt Towers
West Wing, Level-3, C-2, Industrial and Commercial Bank of China Yes Bank
G-Block, Bandra-Kurla Complex, Bandra (East),
ING Vysya Bank
Mumbai - 400 051, Maharashtra.
Annual Report 2013-14

ANNuAl
PERFORMANCE TRENDS STANDAlONE BASIS
ASSETS UNDER MANAGEMENT (Rs. crore) TOTAL INCOME (Rs. crore)

60000
53,102.11 8000 7,888.26
49,676.01
50000 7000 6,563.59
31,443.83
36,473.68
5,893.88
40,213.90 6000
5,401.05
40000 36,182.63
21,987.76
5000 4,495.54
19,865.61
29,159.28
30000 4000
17,979.25
3000
20000
2000
11,180.03
16,317.02
18,226.14
18,232.18
16,628.43
1000
10000
0
2009-10 2010-11 2011-12 2012-13 2013-14
0
2009-10 2010-11 2011-12 2012-13 2013-14
ON BOOKS OFF BOOKS
NET INTEREST INCOME (Rs. crore) NET PROFIT (Rs. crore)
4000
3,647.89
3,458.82
3500 1500
3,226.14 1,360.62
1,264.21
2,907.86 1,229.88 1,257.45
3000
1200
2500
2,217.55
873.12
900
2000
1500
600
1000
300
500
0 0
2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14
EPS (BASIC) (Rs.) NPA (%)
4.0 3.9
59.98
60 55.59 55.72 3.5
54.49 3.2
3.1
50 3.0 2.8
2.6
41.09 2.5
40
2.0
30
1.5
20
1.0
0.8
0.7
0.4
0.8
10 0.5
0.4
0 0.0
2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14
GROSS NPA NET NPA
2 Shriram Transport Finance Company Limited

OuR REACh
A BAGALKOT
BALASORE
BILASPUR
BIORA
D GANGTOK
GANJBASODA
ABOHAR
BALGHAT BIRBHUM DABASPET GAYA
ADILABAD DAHOD
BANKURA BODELI
GOBICHETTIPALAYAM
ADIMALY DAMOH
BANSWARA BOKARO
ADONI GODHARA
BARAMATI BONGAIGAON DARBHANGA
AGARTALA GODHAVARIKHANI
BARAN BULANDSHAHER DAUSA
AGRA DAVANGERE GONDIA
BARASAT BUNDI
AHMEDABAD DEEPIKA GORAKHPUR
BARDOLI BURDWAN
AHMEDNAGAR BURHANPUR DEHRADUN GUDIVADA
BAREILLY
AJMER DEOGHAR GUDIYATHAM
BARMER
AKOLA
ALAPPUZHA
BARODA
BASAVAKALYAN
C DEWAS
DHAMTARI
GUDUR
GUDUVANCHERY
ALIGARH CALICUT
BATLAGUNDU DHANBAD
CHALLAKERE GULBARGA
ALLAHABAD DHAR
BEED
CHAMARAJNAGAR GUMMIDIPOONDI
ALWAR DHARMAPURI
BEGUSARAI
AMALAPURAM CHANDAN NAGAR GUNA
BEHRAICH DHARWAD
AMARAVATI CHANDAPURA GUNTUR
BELGAUM DHULE
AMBALA CHANDIGARH GURGAON
BELLARY DINDIGUL
AMBIKAPUR CHANDIKHOL DODDABALLAPUR GUWAHATI
BELTHANGADY
AMRELI CHANDRAPUR DURGAPUR GWALIOR
BENGALURU
AMRITSAR CHANNAGERI
BERHAMPUR
ANAKAPALLE
ANANATHAPUR
BETUL
BHADRAK
CHANNAPATNA
CHANNARAYAPATNA E h
ANAND CHATTARPUR ELURU HALDWANI
BHAGALPUR
ANCHAL CHENGALPATTU ERNAKULAM HALOL
BHANDARA
ANGAMALY CHENNAI
BHARATPUR ERODE HANMANA
ANGUL CHICKBALLAPUR
BHARUCH HANUMANGARH
ETAWAH
ARAKALGUD
BHATINDA CHIDAMBARAM HARIHARA
ARAKONAM
BHAVANIPURAM CHIKHLI
ARANI
ARANTHANGI
BHAVNAGAR CHIKKAMANGALORE F HARUR
HASSAN
BHAWANIPATNA CHIKODI
ARASIKERE FAIZABAD HAVERI
BHDARAVATI CHINCHWAD
ARCOT FARIDABAD HAZARIBAGH
BHILAI CHINDWARA
ARIYALUR FARUKHABAD HIMAYATHNAGAR
BHILWARA CHIPLUN
ARRAH FATHEPUR HIMMATNAGAR
BHIMAVARAM CHIRALA
ASANSOL HINDUPUR
BHIND
CHITRADURGA
ATTINGAL
ATTUR
BHIVANI
BHIWANDI
CHITTORE
CHITTORGARH
g HISAR
HODAL
AURANGABAD
BHOPAL GADAG HOOGHLY
AZADPUR CHOWTUPPAL
BHUBANESWAR GADHINGLAJ
COIMBATORE HOSHANGABAD
AZAMGARH GADWAL
BHUJ
COOCHBEHAR HOSPET
BIDAR GAJUWAKA
B BIJAPUR
BIJNORE
CUDDALORE
CUDDAPAH
GAJWEL
GANDHIDHAM
HOSUR
HUBLI
BACHHELI CUMBUM GANGANAGAR HUVINAHADAGALI

BIKANER
BADDI CUTTACK GANGAVATHI HYDERABAD
BILASHPUR

3
OuR REACh (Contd.)
I KANNUR
KANPUR
l MOTIHARI
MUDBIDRI
P
ILKAL KARAD L B NAGAR MUMBAI PADI
INDORE KARAIKUDI LAKHIMPUR MURSHIDABAD PALAKKAD
IRINJALAKUDA LAKHIMPURKHIRI MUZAFFARPUR PALANI
KARIMNAGAR
IRITTY LALGUDI
KARNAL MYSORE PALANPUR
LATUR
ITCHAPURAM KARUR PALAYAMKOTTAI
LINGASUGUR
J
KASARAGOD
KASHIPUR
LUCKNOW
LUDHIANA
N PANCHKULA
PANDHARPUR
KATHUA NADIAD PANJIM

JABALPUR
JAGADAMBA
KATNI
KATTAPPANA
M NAGAMANGALA
NAGAPATTINAM
PARAMAKUDI
PARAVATHIPURAM
JAGDALPUR NAGERCOIL PARBHANI
KATTEDAN MACHILIPATNAM
JAIPUR MADANAPALLE NAGOLE
KAVALI PATAN
JAISALMER MADHURAWADA NAGOUR
KAWARDHA PATHANAMTHITTA
JAJPUR MADIKERI NAGPUR
KAYAMKULAM PATHANKOT
JALANDHAR MADIWALA NAMAKKAL
KEONJHAR PATNA
JALGAON MADURAI NANDED
KHAMGAON PATTUKOTTAI
JALNA MAHABOOBNAGAR NANDIGAMA
KHAMMAM PENDURTHI
JAMKHAMBHALIA MALDA NANDURBAR
KHANDWA PERAMBALUR
JAMMU MALEGAON NANDYAL
KHARAGPUR PIDUGURALLA
JAMNAGAR MALUR NARAGUND
KODADA POLLACHI
JAMSHEDPUR MANAPPARAI NARASARAOPETA
KOLAR PONDICHERRY
JANJGIR MANCHERIAL NARASIPATNAM
KOLHAPUR PORBANDAR
JEWARGI MANDAPETA NARNAUL
KOLKATA PRODDATUR
JHALAWAR MANDI NARSINGHPUR
KOLLAM PUDUKOTTAI
JHANSI MANDSAUR NASHIK
KOMPALLY PUNE
JHARSUGUDA MANGALORE NATHAM
KOPPAL PURI
JHUNJHUNU MANJERI NAVI MUMBAI
KORBA PURNEA
JODHPUR MARATHALI NAVSARI
KOTA PUSAD
JORHAT MARKAPURAM NEEMUCH
KOTHAGUDEM PUTTUR
JUNAGADH MARTHANDAM NELAMANGALA
JYEPORE KOTHPUTALI NELLORE
MATHURA
KOTTAYAM
MAYILADITHURAI NEW DELHI R
k KOVILPATTI
KRISHNAGIRI
MEDAK
MEERUT
NEYYATINKARA
NIRMAL
RAIBAREILLY
RAICHUR
KADIRI KRISHNANAGAR NIWAI
MEHSANA
RAIGANJ
KAITHAL KUKATPALLY NIZAMABAD
MELMARUVATHUR
RAIGARH
KAKINADA KULITHALAI
MELUR
RAIPUR
KALLAKURICHI
KALPAKKAM
KULLU
KUMBAKONAM
METTUPALAYAM
METTUR
O RAJAHMUNDRY
RAJAPALAYAM
KALYAN KUMTA ONGOLE
MIRYALAGUDA
RAJKOT
KANCHANGAD KUNDAPURA OOTY
MODASA
RAJNANDGAON
KANCHIPURAM KUNIGAL OSMANABAD
MOGA
RAJPIPLA
KANGEYAM KUNNANKULAM OTTANCHATRAM
MORADABAD
RAJSAMAND
KANGRA KURNOOL OTTAPALAM
MORBI
RAMESWARAM
KANKAVALI KUSHALNAGAR MORENA
RAMGARH

OuR REACh (Contd.)
RANCHI
RANIPET
SHIVPURI
SHOLINGANALLUR
THIRUPPATHUR
THIRUVALLUR
W
RATANGARH SHRIRAMPUR THIRUVARUR WADI
RATLAM SIKAR THURAIYUR WADKHAL
RATNAGIRI SILCHAR TINDIVANAM WAIDHAN
RAYAGADA SILIGURI TINSUKIA WARANGAL
RENUKOOT SINDHANUR TIPTUR WARDHA
REWA SINGARAYAKONDA WARDHAMAN NAGAR
TIRUCHENDUR
REWARI SIRA WASHIM
TIRUCHENGODE
ROHA SIRKALI TIRUNELVELI
ROHTAK SIRMOUR
ROURKELA SIROHI
TIRUPATHI
TIRUPPUR
Y
SIRSA TIRUR YADGIR
S SIRSI
SIVAGANGA
TIRUVANNAMALAI YAMUNA NAGAR
TIRUVOTRIYUR YAVATMAL
SADULPUR
SIVAKASI TIRUVUR
SAGAR YELAHANKA
SOLAPUR
TRICHUR
SAGARA
SRIGANGANAGAR
TRICHY
SAHAJAHANPUR
SRIKAKULAM
SAHARANPUR TRIVANDRUM
SRINAGAR
SAHIBABAD TUMKUR
SULTANPUR
SAKALESHPURA TUTICORIN
SULTHANBATHERY
SALEM
SULUR
SALUR
SAMALKHA
SUNDARGARH u
SURAT
SAMBALPUR UDAIPUR
SURENDRANAGAR UDHAMPUR
SANDUR
UDUPI
SANGAGIRI
SANGAMNER T UJJAIN
ULUNDRUPET
SANGAREDDY
T DASARAHALLI
SANGLI UNA
TADEPALLIGUDEM
SANGRUR TADIPATRI
SARAIPALLI
SATANA
TAMBARAM V
TAMLUK
VALLIYOOR
SATARA
TANJAVUR
VAPI
SAWAIMADHOPUR
TENALI
VANIYAMBADI
SECUNDRABAD
TENKASI
VARANASI
SEDAM
TEZPUR
VATAKARA
SEHORE
THALAIVASAL
VELLORE
SENDHWA
THALASSERY
VERAVAL
SEONI
THANE
VIJAYAWADA
SHAHAPUR
THANJAVUR
SHAHDOL VILLUPURAM
THARAD
SHILLONG VIRUDHACHALAM
THENNI
SHIMLA VIRUDHUNAGAR
THINGAL NAGAR
SHIMOGA VISAKHAPATNAM
THIRUNAGAR
VIZIANAGARAM

5
MANAgEMENT DISCuSSION
& ANAlYSIS
EConoMIC ovErvIEw CoMMErCIaL vEhICLES

2013 was a year of recovery for the global economy. 2013-
Segment-wise Volumes
14 witnessed two great stories in the world economy:
the structural shift from the developed world towards the Segments FY10 FY11 FY12 FY13 FY14
emerging world; and the cyclical climb out of a recession. LCVs 287,777 3,61,846 460,831 524,887 432,111
The first continued in first half of the financial year, but at a
slightly slower pace than before. Growth in China, at 7.5 per MHCV 244,944 323,059 348,701 268,263 200,627
cent, was it’s the slowest for 23 years. Things also slowed
Total 532,721 684,905 809,532 793,150 632,738
in India, to a little below 5 per cent, far slow when compared
to the past eight years. Africa, encouragingly, grew by more 2013-14 was among the most challenging years for the Indian
than 5 per cent. commercial vehicles sector. India’s cycle-prone commercial
As for the second story, in the developed world what vehicle industry is not new to downturns. However, the
had started as an uneven and patchy recovery began to present recession, which began in April 2012 in the medium
strengthen. The US, despite having to cope with feuding over and heavy truck segment, and spread to light commercial
its budget, seems to have sped up. It has been creating jobs vehicles earlier this financial year, has clearly unnerved
and its housing market improved sharply. In Europe there the industry.The medium and heavy truck segment - which
was a better story too, though an uneven one. The north, accounts for the bulk of the industry’s load-carrying capacity
led by Germany, had a solid year, reducing unemployment - shrank 26 per cent in 2012-13 and shrank further by 25 per
and boosting living standards. Across the Mediterranean the cent in 2013-14.
pattern was more disappointing, with Italy, Spain, Portugal
PrE-ownED CoMMErCIaL vEhICLES
and Greece all enduring a year of rising unemployment.
Pre-owned commercial vehicles segment has been the
However, the numbers have started to improve. Europe and
the euro are not out of trouble, but the acute phase of their flagship segment of the company over the past three
difficulties may be past. 2014-15 expects to deliver which decades. The commercial vehicle financing market size is
much better and more balanced growth than any year since estimated to be Rs. 1900 bn comprising of ~6mn vehicles.
2007. The Company is targeting the 5-12 year old pre-owned
vehicle segment accounting for 44% market share in value
InDIan EConoMy
terms and 43% in volume terms with an addressable market
Just when the Indian economy couldn’t get any lower in terms opportunity of Rs.750 bn. The pre-owned vehicle market
of performances, 2013-14 is expected to be near 5 per cent; is largely unorganized and under penetrated with 60-65%
its lowest amongst the past decade. The uneven political market share with private financiers presenting enormous
climate led to stagnant economical scenario – thereby leading business opportunity for a sustainable long term growth.
to lower infusion of investments in to infrastructure and core
industries – also leading to lower capital expenditure and
less job creation. The inflation remained on the higher side, Market potential Truck profile (7.5 mn)
thereby reducing the disposable income and leading to lower
consumer spends. The banking system in India continued to
grapple with rising delinquencies and higher scrutiny from
the regulators. The process for new licenses was set into the
motion, with the onset of the new Governor. The rates were
increased a couple of times to counter the rising inflation,
thereby leading to turning off the tap to bare minimum when 12 Years +180bn 12 Years 18%
it came to funding at competitive rates by the banks. The 0-4 years, 870bn 0-4 years 39%
core industries and the infrastructure sectors witnessed lower 5-12 years, 850bn 5-12 years 43%
traction in terms of activity, thereby leading to lukewarm
economic activity across key states. ShrIraM TargET SEgMEnT

& ANAlYSIS (Contd.)
DISTRIBUTION CHAIN - HUB AND SPOKE MODEL

MEDIUM HAUL
LONG HAUL
300-800 KMS SHORT HAUL LAST HAUL
>800 KMS 50-300 KMS
<50 KMS
HUB B
350-800 KM
50-350 KM
>800 KMS
<50 KM
HUB A
Source: Avendus Research
FY14 - coupled with government’s inability to kick start projects

LIfE CyCLE of a Cv offErS MuLTIPLE fInanCIng and judicial interventions like the ban on mining, have resulted
oPPorTunITIES in difficulties for the CV and CE sectors.
A typical nine tonne CV generally changes ownership four
times in its life cycle. It starts of on the long haul national COMPANY REVIEW
highways, moves down to interstate by the fifth year, further on about the company
to less than 300 km intercity routes and finally goes on to local Established in 1979, Shriram Transport Finance Co Ltd. is the
uses like garbage trucks after 13-14 years. These changes of largest asset financing NBFC with assets under management
ownership create multiple financing options for financiers. of Rs 53,102.11crore. The company is a leader in organised
financing of pre-owned trucks with a market share of 20-25%
ConSTruCTIon EquIPMEnT InDuSTry
in the strategic segment of 5-12 year old trucks. Having a pan-
All this is expected to drive demand for construction equipment India presence with a network of 654 branches and partnership
such as crawlers, excavators, loaders and compaction with ~500 private financiers, the company has revitalized the pre-
equipment, and boost the heavy equipment rental and leasing owned commercial vehicle industry and thereby ensured
business, which is currently a highly fragmented industry inclusive growth to its strong customer base of over 6 lac first
dominated by unorganised small construction equipment time users and driver-turned-owners.
operators. These customers, whose profile is very similar to
2013-14 in review
small road transport operators, have improved demand for
second-hand construction equipment in recent years. 2013-14 was a challenging year for the company. The sectors
that traditionally motivate higher demand for commercial
It can be noted that the dip in economic growth - experts are
vehicles continued to face lower traction in terms of investments
suspecting if we would even get to the 5 per cent mark for
MANAGEMENT DISCUSSION & ANALYSIS Annual Report 2013-14

7
& ANAlYSIS (Contd.)
and activity. While the Indian infrastructure spending remained • Knowledge-driven and relationship-based business
stagnant on account of policy delays and tightening credit model
decisions by the banks and financial institutions; the mining • Pan-India presence with 654 branch offices
sector was badly hit by the imposed ban in key areas such as • A well-defined and scalable organisation structure based
Odisha, Karnataka, etc. Moreover, increased cost of finance on product, territory and process knowledge
resulted in adverse impact on the capital investment plans by the • Strong financial track record driven by fast growth in AUM
corporate. To top it all, the revision in diesel prices led to higher with low Non Performing Assets (NPAs)
operating cost for the truck owners in an already recessionary • Experienced and stable management team
economy. These events enabled us at Shriram transport to • Strong relationships with public, private as well as foreign
set our priorities right – in other words, to grow responsibly banks, institutions and investors.
by keeping our asset quality intact. During 2013-14, our total • More than 11 lacs customers across India
assets under management (AUM) increased by 5.63% to Rs.
53,102.11 crore. Our net interest income increased by 6.90% to weaknesses
Rs. 3,647.89 crore and our net profits registered a 7.09% • The Company’s business and its growth are directly linked
degrowth to Rs. 1,264.21 crore. Wewidened our reach by to the GDP growth of the country
adding 109 new branches and amidst all this, our Net NPAs
opportunities
registered a growth of 6 bps, reflecting our quality of growth.
Our gross NPAs and net NPAs stood at 3.86% and 0.83% • Growth in the CV market
respectively, indicating higher provisioning to protect our • Strong demand for construction equipment
quality of growth in the coming years. • Strong demand for passenger CVs
• Strong demand for pre-owned tractors
Construction equipment business
• Loans for working capital requirements of CV users
We continued to capitalize upon the trend among small road • Partnerships with private financiers will enable the
transport operators to diversify into construction equipment Company to enhance its reach without significant
as the second income opportunity. To this end, our subsidiary investments in building infrastructure
- Shriram Equipment Finance Co. Ltd., continued to offer a Threats
wide range of pre-owned and newcommercial construction
• Regulatory changes in the NBFC and ancillary sectors
equipment including forklifts, cranes, loaders etc. to first
time users, including our existing customers.During 2013-14, fInanCIaL PErforManCE
Shriram Equipment Finance registered a topline of Rs. 543.95
During the year 2013-14, the Company’s total income increased
crore and a net profit of Rs.86.83 crore. The company had an
by 20.18% to Rs.7,888.26 crore, as compared to Rs. 6,563.59
AUM of Rs. 3,418.39 croreas on March 31, 2014.
crore in 2012-13. The Company’s PAT decreased by 7.09% to
auto Malls
Rs. 1,264.21 crore, from Rs. 1,360.62 crore. The Gross NPAs
Shriram Automall India Limited, the subsidiary of our company, and net NPAs for the year under review stood at 3.86% and
operates 32 Automalls, 11 of which were opened during 2013- 0.83% respectively. The Company’s net spread for the year
14. Automall is the first-of-its-kind mall that offers a common under review stood at 3.81%.
meeting platform for the potential buyers and sellers. This Capital adequacy ratio (Car)
platform has become a unique mechanism to ensure price
The Company maintained a CAR of 23.39% during 2013-14
discovery of the pre-owned vehicles. Automall offers absolute
against a minimum 15% as required by RBI norms.
transparency in valuation process, backed with assured title,
quality and performance of the vehicle to the buyers and Borrowing profile
assured payment to the sellers. The Company’s total external borrowings increased from
Shriram New Look is a novel initiatives taken by STFC, that Rs. 31,002.37 crore as of March 31, 2013 to Rs. 35,924.62
aims at empowering vehicle owners to transact refurbished crore as of March 31, 2014.
vehicles by addressing and correcting few maintenance issues. assets under Management (auM)
This facility is available in the Automalls but is managed by a The total Assets Under Management (AUM) as on March 31,
dedicated team. 2014 stood at Rs. 53,102.11 crore against Rs. 49,676.01 crore
as on March 31, 2013.
SwoT anaLySIS
Securitisation
Strengths
During 2013-14 the company securitised its assets worth
• The pioneer in the pre-owned commercial vehicles
Rs. 10,680 crore(about 20.11% of the total assets under
financing sector
management as on March 31, 2014) as against Rs. 8,784

& ANAlYSIS (Contd.)
crore during 2012-13. The steps initiated by the company to to ensure reliability of financial and all other records to prepare
ensure superior asset quality through transparent and impactful financial statements and other data. The Audit Committee
processes have resulted in expanding its realm of economical of the Board reviews internal audit reports given along with
financial alternative. The securitisation allows the company to management comments. The Audit Committee also monitors
mitigate the interest risk by converting its floating liability to the implemented suggestions.
fixed price liability but also enables the company to access human resources
low cost funds under priority sector by RBI. The outstanding
As of March 31, 2014, the Company had 18,122 employees on
securitised assets portfolio stood at Rs. 16,543 croreas on
its payrolls including 11,209 product/credit executives.
March 31, 2014.
Internal control systems and their adequacy CauTIonary STaTEMEnT
In any industry, the processes and internal control systems play This report contains forward looking statements that involve
a critical role in the health of the Company. The Company’s well- risks and uncertainties including, but not limited to, risks
defined organisational structure, documented policy guidelines, inherent in the Company’s growth strategy, dependence on
defined authority matrix and internal controls ensure efficiency certain businesses, dependence on availability of qualified and
of operations, compliance with internal policies and applicable trained manpower, economic conditions, government policies
laws and regulations as well as protection of resources. and other factors. Actual results, performance or achievements
Moreover, the Company continuously upgrades these systems could differ materially from those expressed or implied in such
in line with the best available practices. The internal control forward-looking statements. This report should be read in
system is supplemented by extensive internal audits, regular conjunction with the financial statements included herein and
reviews by management and standard policies and guidelines the notes thereto.
KEy rISKS anD MITIgaTIon MEaSurES

Porter’s Five Forces analysis
Threat of entrants – Low

• Unique business model backed by
established relationships
• Three decades of industry
presence
• Caters to a unique customer base
comprising of SRTOs and FTUs.
• Established product valuation
expertise
Competition – Low Customer’s bargaining power – Low

Supplier’s bargaining power – • Unique customer base,
Medium • First mover and leader in pre-
owned CV financing traditionally perceived ‘risky’ by the
• Funds at competitive costs leads banks and organised financiers
to strong margins • Has created scalable model
• Unorganised financiers charge
• Dependence on banks and • Has emerged as a banker to the higher rates
financial institutions pre-owned asset owners
• Lack of banking habits and higher
• ECB route not permitted • Highly unorganised industry, mobility make the segment highly
mainly run by private financiers challenging to serve
Mitigation measures
• The Company has maintained Threat of substitutes – Low
superior asset quality and been
accredited with AA ratings by major • Inability of FTUs to finance entire
credit agencies asset from their savings
• Over the past two years, the • Valuation of pre-owned asset
Company has raised funds through a major barrier for financing
NCDs, resulting in competitive cost companies
of funds to fuel its future growth.

9
& ANAlYSIS (Contd.)
ECONOMY RISk
Sale of CVs gets directly impacted with the slowdown in the economic activity. This could lead to lower business for the
Company.
Risk mitigation
In general, any industrial or economical slowdown usually hits the demand for new commercial vehicles. At the same time, with
low industrial activity or slowdown in infrastructure projects, usually the large fleet owners get impacted on account of lower
utilization. Shriram Transport finances FTUs and DTOs, who usually use the CV for earning their own livelihood. As a result,
the customers find relevant means to utilise their assets, even with the macro factors are not encouraging. The pre-owned CV
portfolio comprise of ~76% of the Company’s total portfolio. At the same time, the Company has diversified its asset portfolio to
cater to LCVs, a segment which continues to remain promising in the long term. Besides, the Company has also expanded its
solutions to emerge as a one-stop-shop for CV owners.
huMAN RESOuRCE RISk

The Company has a unique relationship-based business model, which may get adversely impacted due to attrition at
both ground and strategic levels.
Risk mitigation
Since its inception, Shriram Transport has practiced its philosophy of “putting people first”. The Company’s peop le friendly policies
coupled with a performance-rewarding culture have enabled it to deliver progressive career path for each of its employees. The
Company provides entrepreneurial role to each of its employees by empowering them with decision-making in their respective
realm of work. This culture has not only enabled the Company to limit attrition at key levels but also produce home grown
leaders.
INTEREST RATE RISk

While the Company borrows at both fixed and floating rates, it lends at a fixed rate. If the Company has a large proportion
of borrowings at a floating rate, a sharp fluctuation in interest rate may lead to a reduction in the Company’s net interest
margin. Higher interest cost would also lead to a higher cost of lending which may reduce the attractiveness of the
Company for borrowers and affect the Company’s ability to grow its business.
Risk mitigation
The Company has instituted the process of asset valuation, perfected over the years, which enables it to lend judiciously and
protect its asset quality. The relationship-based business model has enabled the Company to receive timely recoveries and
ensure healthy portfolios. All of the Company’s loans qualify as Priority Sector assets for banks and therefore have lower cost.
To fuel the scalable business model with affordable funds, the Company has, raised funds through non-convertible debentures.
These NCDs are listed and were rated highly by the reputed credit agencies. Given its long-standing relationship with banks and
institutions and an impeccable track record of servicing its debts in a timely manner, the Company is a preferred partner for all
banks and institutions

& ANAlYSIS (Contd.)
ASSET-lIABIlITY MISMATCh RISk

If the Company uses short-term liabilities to fund long term assets, it could result in a liquidity crunch affecting the
Company’s ability to service loans and fund overheads.
Risk mitigation
The Company ensures that the short term and long term sources of funds are favourably matched with deployment. To avoid any
asset liability risk, the Company resorted to long-term funding instruments such as NCDs and securitization. With the superior
asset quality and demonstrated scalability of business model, the Company has continued to enjoy trust and support from its
long-term investors and banks. The Company has an impeccable record in servicing debts on time, further resulting from its strict
fiduciary discipline.
CASh MANAgEMENT RISk

Almost two-thirds of the Company’s total monthly collections are in the form of cash, due to the underdeveloped banking
habits of SRTOs. Lack of proper cash management can lead to a loss for the Company.
Risk mitigation
The Company ensures efficient and secure collection across all its branches through cash management network with leading
banks. This coupled with stringent checks and internal controls employed across all branches has led to significant mitigation in
the envisioned risk. At the regional level, each branch’s collections are monitored and reconciled to avoid any potential risk. The
Company also ensures that its field officers make compulsory monthly visits to borrowers, which help in managing large cash
collections.

11
DIRECTORS’ REPORT
Your Directors have pleasure in presenting their Thirty Fifth Annual Report and the Audited Statements of Accounts for the
financial year ended March 31, 2014.
fInanCIaL hIghLIghTS
(Rs. in lacs)
Particulars 2013-14 2012-13

Profit Before Depreciation and Taxation 185,718.05 203,452.20
Less: Depreciation and Amortisation 2,913.79 1,833.09
Profit Before Tax 182,804.26 201,619.11
Less: Provision for Taxation 56,383.49 65,557.10
Profit After Tax 126,420.77 136,062.01
Add: Balance brought forward from previous year 288,626.08 191,157.33
Balance available for appropriation 415,046.85 327,219.34
appropriations
Excess provision written back – tax on dividend - 0.41
General Reserve 13,000.00 14,000.00
Statutory Reserve 26,000.00 28,000.00
Debenture Redemption Reserve 11,155.41 (21,956.09)
Dividend on Equity Shares of Rs. 10/- each 15,881.79 15,900.24
Tax on Dividend 2,698.69 2,649.52
Balance carried to Balance Sheet 346,310.96 288,626.08
DIvIDEnD
Your Directors at their meeting held on October 29, 2013 declared an interim dividend of Rs. 3.00/- per equity share (i.e. 30%) for
the financial year 2013-14, which was paid on November 25, 2013.
Your Directors have recommended a final dividend of Rs.4/- per equity share (i.e. 40%) for the financial year ended March 31,
2014. Thus, the total dividend (including interim dividend paid) for the year ended March 31, 2014 shall be Rs.7/- per equity share
(i.e.70%).
CaPITaL aDEquaCy raTIo

Your Company’s total Capital Adequacy Ratio (CAR), as of March 31, 2014, stood at 23.39% of the aggregate risk weighted assets
on balance sheet and risk adjusted value of the off-balance sheet items, which is well above the regulatory minimum of 15%.
CrEDIT raTIng
The credit rating enjoyed by the Company as on March 31, 2014 are as follows:
Credit rating agency Instruments ratings
CARE Non-Convertible Debentures CARE AA+
CARE Subordinate Debt CARE AA+
CRISIL Fixed Deposit CRISIL FAA+/Stable
CRISIL Subordinate Debts CRISIL AA/Stable
CRISIL Non-Convertible Debentures-Public CRISIL AA/Stable
CRISIL Short Term Debt CRISIL A1+
CRISIL Bank Loan Long Term & Short Term CRISIL AA/Stable
ICRA Fixed Deposit MAA+ with Stable outlook
India Ratings & Research Private Limited
Non-Convertible Debentures-Public IND AA
(Formerly known as “FITCH”)
India Ratings & Research Private Limited
Subordinate Debt IND AA
(Formerly known as “FITCH”)

DIRECTORS’ REPORT (Contd.)
oPEraTIonS Passenger Carriers and Goods Carriers declined by 12.74%
For the financial year ended March 31, 2014, your Company and 2.53% respectively.Two Wheelers registered growth of
earned Profit Before Tax of Rs.182,804.26 lacs as against 7.31%. Within the Two Wheelers segment, Scooters and
Rs.201,619.11 lacs in the previous financial year and the Profit Motorcycles grew at 23.24% and 3.91% respectively, while
After Tax of Rs.126,420.77 lacs as against Rs. 136,062.01 Mopeds declined by 8.35% during April, 2013- March, 2014.
lacs in the previous financial year. The total Income for the
The overall automobile exports grew by 7.21%. Passenger
year under consideration was Rs. 788,825.91 lacs and total
vehicles, Three Wheelers and Two Wheelers exports
expenditure was Rs. 606,021.65 lacs. As on March 31,
registered growth of 6.09%, 16.60% and 6.52% respectively,
2014, the outstanding hypothecation loans were Rs.
while Commercial Vehicles exports declined by 3.71% (SIAM
3,525,312.21 lacs.
Media Release 11/04/2014).
During the financial year ended March 31, 2014, the Company
mobilized Rs. 483,718.01 lacs through Non-convertible The heavy goods transport vehicles sector faced many
debentures, Rs.129,011.38 lacs through subordinated challenges in terms of idle time due to de-growth in
debts, Rs.1,363,900 lacs through term loans, Rs. 48,700 manufacturing, mining and quarrying sectors, pressure on
lacs through working capital loans, Rs.46,000 lacs through margins as the freight rate increases were not commensurate
commercial paper,Rs.1,067,954.78 lacs through assignment with fuel price increases. This resulted into lower demand
of loan receivables from the customers, Rs.161,630.58 lacs for credit from urban areas. The rural and semi-urban
through Fixed deposit and Rs. 1,400 lacs through ICD. credit demand was maintained due to impressive growth in
foodgrain production.
EConoMIC anD BuSInESS EnvIronMEnT
According to the advance estimates of national income for Company’s performance
the year 2013-14 issued by the Central Statistical Office Considering the difficult macro-economic conditions
(CSO), Ministry of Statistics and Programme Implementation, and challenging business environment, the Company’s
Government of India vide Press Release dated February 7, performance during the year under review was satisfactory.
2014, the growth of Gross Domestic Product (GDP) during The Company continued its focus on financing of pre-owned
2013-14 is estimated at 4.9% as compared to growth rate commercial vehicles and penetration into rural market. The
of 4.5% in the year 2012-13 (previous year). The Agriculture assets under management had increased. However, the
sector comprising ‘agriculture, forestry and fishing’ sectors finance cost had increased. The Net interest margins were
is likely to show a growth of 4.6% during 2013-14 as against under pressure.
the previous year’s growth rate of 1.4%. The production of
foodgrains is expected to grow by 2.3% as compared to
ouTLooK anD oPPorTunITIES
decline of 0.8% in the previous agriculture year. In Industry
sector de-growth of 0.2% is estimated in the ‘manufacturing’ The real GDP growth rate is projected to pick up to a range of
sector as compared to the growth of 1.1% in the previous year. 5% to 6% in 2014-15. Easing of domestic supply bottlenecks
The mining and quarrying de-growth of 1.9% is estimated and progress on the implementation of stalled projects
as compared to the de-growth of 2.2% in the previous year. already cleared should contribute to growth. The Current
A growth rate of 1.7% is estimated in the ‘construction’ as Account Deficit is expected to be about 2% of GDP.
compared to 1.1% in the previous year. RBI has set ambitious target of bringing down the CPI
In the Service sector ‘trade, hotels, transport and inflation to 8% by January 2015 and 6% by January, 2016.
communication’ is estimated to grow at 3.5% as against But the factors such as possible El Nino effects on agricultural
growth of 5.1% in the previous year. The sector ‘financing, production, uncertainty on the setting of minimum support
insurance, real estate and business services’ is expected to prices for agricultural commodities and setting of other
show a growth rate of 11.2% as compared to growth rate of administered prices of fuel, fertilizer and electricity may post
10.9% in the previous year. threat in achievement of these targets.
automobile Industry Your directors expect that with stable government in center,
estimates of better GDP growth rate, the Company’s
The Society of Indian Automobile Manufacturers (SIAM) has
strong business model, innovative fund management
reported that the overall domestic sales of vehicles during
techniques,continued confidence of investors and support of
the year 2013-14 grew marginally by 3.53% as compared to
the lending institutions to the Company’s fund mobilization
year 2012-13 (last year). The sales of Passenger Vehicles
activities on account of good track record of debt servicing,
declined by 6.05%. Within the Passenger Vehicles, Passenger
your Company should achieve better performance in the
Cars, Utility Vehicles and Vans dropped by 4.65%, 5.01%
year 2014-15.
and 19.58% respectively as compared to the last year. The
overall Commercial Vehicles sales registered a de-growth
of 20.23% as compared to the last year. Medium & Heavy fIXED DEPoSITS
Commercial Vehicles (M&HCVs) registered negative growth As on March 31, 2014, there were 3,619 fixed deposits
of 25.33% and Light Commercial Vehicles also dropped aggregating to Rs 3,918.14 lacs that have matured but
by 17.62%. Three Wheelers sales declined by 10.90%. remained unclaimed. There were no deposits, which were
DIRECTORS’ REPORT Annual Report 2013-14

13
claimed but not paid by the Company. The unclaimed PuBLIC ISSuE of SECurED rEDEEMaBLE
deposits have since reduced to 3,012 deposits amounting non-ConvErTIBLE DEBEnTurES
to Rs. 3,018.75 lacs. Appropriate steps are being taken In order to raise funds for various financing activities including
continuously to obtain the depositors’ instructions so as to lending and investments, to repay existing loans and for
ensure renewal/ repayment of the matured deposits in time.
business operations including for meeting capital expenditure
and working capital requirements, the Company made two
SuBSIDIarIES
Public Issues of Secured Redeemable Non-Convertible
For the year ended March 31, 2014, the Income from
Debentures (NCDs) of face value of Rs.1,000/- each during
Operations and Profit after Tax of Shriram Equipment
the year under review. The first Public Issue of NCDs opened
Finance Company Limited (SEFCL) was Rs. 54,377.78 lacs
on July 16, 2013 with the Base Issue aggregating upto
and Rs.8,683.00 lacs respectively.
Rs. 37,500 lacs with an option to retain over-subscription upto
For the year ended March 31, 2014, the income from Rs. 37,500 lacs for issuance of additional NCDs aggregating
operations and Profit after Tax of Shriram Automall India to a total of upto Rs. 75,000 lacs. After considering the
Limited (SAIL) was Rs.7,325.13 lacs and Rs. 826.35 lacs technical rejections, the Issue was subscribed 1.96 times of
respectively. During the year 2013-14, SAIL has established the Base Issue size and 0.98 times of the Total Issue Size.
11 additional Automalls, thereby increasing the total number The Second Public Issue of NCDs opened on October 07,
of Automalls to 32. 2013 with the Base Issue aggregating upto Rs. 25,000 lacs
As the Company received Corporate Agent license from with an option to retain over-subscription upto Rs. 25,000 lacs
Insurance Regulatory and Development Authority (IRDA) for issuance of additional NCDs aggregating to a total of upto
for procuring business of both Life and General Insurance Rs. 50,000 lacs. After considering the technical rejections,
a decision was taken not to obtain separate license by the the Issue was subscribed 2.1356 times of the Base Issue
Company’s wholly owned subsidiary Shriram Insurance Size and 1.0678 times of the Total Issue Size.
Broking Company Limited (SIBCL). SIBCL withdrew its
application pending with IRDA. The application filed by SIBCL BoarD of DIrECTorS
under the provisions of Section 560 of the Companies Act, Mr. Ranvir Dewan, a Non-Executive Non-Independent
1956 to strike off its name was accepted and confirmed by Director nominated by Newbridge India Investments II
the Ministry of Corporate Affairs vide notice dated December Limited (Newbridge) on the Board of the Company resigned
13, 2013. from directorship of the Company on September 02, 2013
A statement on consolidated financial position of the Company subsequent to disposal of its entire shareholding in the
with that of the subsidiaries is attached to the Annual Report. Company by Newbridge. The Board has placed on record
The consolidated financial statements attached to this Annual its appreciation of the invaluable services rendered by
Report are prepared in compliance with the applicable Mr. Ranvir Dewan.
Accounting Standards and Listing Agreement. The Board of Directors in its meeting held on April 29, 2014
The annual reports and the annual accounts of the subsidiaries has appointed Mr. Gerrit Van Heerde as Additional Director
and the related detailed information shall be made available of the Company in the category of Non-Executive, Non-
to shareholders of the Company seeking such information. Independent director.
The annual accounts of the subsidiaries shall also be kept Mr. Arun Duggal will retires by rotation at the ensuing Annual
for inspection by shareholders at the Registered Office of General Meeting (AGM) and being eligible, offers himself for
the Company and of the respective subsidiaries.The annual re-appointment.
accounts of the subsidiaries shall be available on the website
Mr. Puneet Bhatia, Non Executive Non-Independent Director
of the Company viz. www.stfc.in. The Company shall furnish
will subject to approval of member at the ensuing AGM,
hard copy of details of accounts of the subsidiaries to any
continue as Non Executive Non Independent Director liable
shareholder on demand.
to retirement by rotation.
SharE CaPITaL The Board of Director seek your support for passing of the
During the year under review, the Company allotted 18,800 resolution for appointment/re-appointment of the above
fully paid up equity shares of the face value of Rs. 10/- directors.
each to its employees on their exercise of stock Options
DIrECTorS’ rESPonSIBILITy STaTEMEnT
by them. Details of the shares issued and allotted under
the Employees Stock Option Scheme of the Company, as Pursuant to the provisions of section 217(2AA) the Companies
well as the disclosures in compliance with Clause 12 of the Act, 1956, the Directors confirm that, to the best of their
Securities and Exchange Board of India (Employee Stock knowledge and belief:
Option Scheme and Employee Stock Purchase Scheme) a) In the preparation of the Annual Accounts, the applicable
Guidelines, 1999 are set out in Annexure to this Report. Accounting Standards have been followed along with

proper explanation relating to material departures; (iii) Business Responsibility Report as per clause 55 of the
b) That such accounting policies as mentioned in Note Listing agreement is given as a separate Report forming
2.1 of the Accounts have been selected and applied part of the Annual Report.
consistently, and judgments and estimates have been
made that are reasonable and prudent so as to give a auDITorS
true and fair view of the state of affairs of the Company M/s. S. R. BATLIBOI & Co. LLP, Chartered Accountants,
as at March 31, 2014 and of the profit of the Company Mumbai and M/s. G. D. Apte & Co., Chartered Accountants,
for the year ended on that date; Mumbai, Auditors of the Company retire at the conclusion of
c) That proper and sufficient care has been taken for the ensuing Annual General Meeting and are eligible for re-
the maintenance of adequate accounting records in appointment. Certificates have been received from them to the
accordance with the provisions of the Companies Act, effect that their re-appointment as Auditors of the Company,
1956, for safeguarding the assets of the Company and for if made, would be within the limits prescribed under Section
preventing and detecting fraud and other irregularities; 139 & 141 of the Companies Act, 2013. They have also
confirmed that they hold a valid peer review certificate as
d) The Annual Accounts have been prepared on a going
prescribed under clause 41(1)(h) of the Listing Agreement.
concern basis.
Members are requested to consider their re-appointment.
CorPoraTE SoCIaL rESPonSIBILITy CoMMITTEE
ConSErvaTIon of EnErgy, TEChnoLogy
Pursuant to Section 135 of the Companies Act, 2013 the aBSorPTIon anD forEIgn EXChangE EarnIngS
Board of Directors in its meeting held on April 29, 2014 has anD ouTgo
constituted Corporate Social Responsibility Committee of
Pursuant to the requirement under Section 217(1)(e) of the
three directors.
Companies Act, 1956, read with Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules,
rBI guIDELInES
1988:
The Company continues to comply with all the requirements
a. The Company has no activity involving conservation of
prescribed by the Reserve Bank of India, from time to time
energy or technology absorption.
as applicable to it.
b. The Company does not have any Foreign Exchange
annEXurES Earnings.
Vide General Circular 08/2014 dated 04/04/2014, the Ministry c. Outgo under Foreign Exchange - Rs.51.23 lacs.
of Corporate Affairs (MCA) has clarified that the financial
statements(and documents required to be attached thereto), ParTICuLarS of EMPLoyEES
auditors report and Board’s report in respect of financial The Company has not employed any individual whose
years that commenced earlier than April 01,2014 shall be remuneration falls within the purview of the limits prescribed
governed by the relevant provisions/Schedules/rules of the under the provisions of Sec 217 (2A) of the Companies Act,
Companies Act,1956. 1956, read with the Companies (Particulars of Employees)
Following Reports are attached to this Report pursuant Rules, 1975.
to the provisions of the Listing Agreement with the Stock
Exchange: aCKnowLEDgEMEnT
(i) The Report on Corporate Governance as per clause The Board of Directors would like to place on record their
49 of the Listing agreement forms part of the Annual gratitude for the guidance and cooperation extended by
Report, and is annexed herewith together with Reserve Bank of India and the other regulatory authorities.
Auditors’ Certificate on Corporate Governance, the The Board takes this opportunity to express their sincere
certificate, duly signed by the Managing Director and appreciation for the excellent patronage received from
Chief Financial Officer on the Financial Statements of the Banks and Financial Institutions and for the continued
the Company for the year ended March 31, 2014 as enthusiasm, total commitment, dedicated efforts of the
submitted to the Board of Directors at their meeting held executives and employees of the Company at all levels. We
on April 29, 2014 and the declaration by the Managing are also deeply grateful for the continued confidence and faith
Director regarding compliance by the Board members reposed on us by the Shareholders, Depositors, Debenture
and senior management personnel with the Company’s holders and Debt holders.
Code of Conduct.
For and on behalf of the Board of Directors
(ii) The Management Discussion & Analysis Report as
per clause 49 of the Listing agreement is given as a Mumbai arun Duggal
separate Report forming part of the Annual Report. April 29, 2014 Chairman

15
(I) “Promoter Group” as defined under regulation 2(1)(t) of Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers Regulations, 2011, (SAST regulations 2011) as under :
1. Shriram Ownership Trust, 2. Shriram Financial Ventures (Chennai) Private Limited, 3. Shriram Life Insurance Company
Limited, 4. Shriram General Insurance Company Limited, 5. Shriram Credit Company Limited, 6. Shriram Asset Management
Company Limited, 7. Bharat Reinsurance Brokers Private Limited, 8. Shriram Overseas Investments Private Limited, 9.
Shriram Investments Holdings Limited, 10. Bharat Investments Pte.Limited Singapore, 11. Shriram City Union Finance Ltd,
12. Shriram Fortune Solutions Limited, 13. Shriram Wealth Advisors Limited, 14. Shriram Insight Share Brokers Limited,
15. Shriram Financial Products Solutions (Chennai) Private Limited, 16. Shriram Housing Finance Limited, 17. Insight
Commodities and Futures Private Limited and 18. Shrilekha Financial Services.
(II) The Persons Acting in Concert (PAC), as defined in the SAST Regulations 2011 for the purpose of Regulation 10 of SAST
Regulations, 2011:
i. Sanlam Emerging Markets (Mauritius) Limited, ii. Shriram Mutual Fund (SMF), iii. Mr. S Krishnamurthy (Trustee of SMF),
iv. Mr. S M Prabhakaran (Trustee of SMF), v. Mr. V N Shivashankar (Trustee of SMF), vi. Dr. Qudsia Gandhi (Trustee of
SMF), vii. Shriram Automall India Limited, viii. Shriram Equipment Finance Company Limited and ix. Sanlam Life Insurance
Limited.
(III) All the entities/persons mentioned in Note No. I and Note No. II are PACs for not less than three years except the entities at
Sr. No. (2) and (18) in Note No.I and the entities/persons at Sr. No. (i),(iii), (v), (vi) and (ix) in Note No II which are PACs for
less than three years.
(IV) None of the above-mentioned entities/persons in Note No.I and II hold any shares in the Company except the entity at Sr.
No. (ix) in Note No.II.
The above disclosure is made for the purpose of Regulation 10 of SAST, Regulations 2011.

annEXurE To ThE DIrECTorS’ rEPorT, 2013-14

Particulars Shriram Transport finance Company Limited Employees
Stock option Scheme, 2005
a) Option granted 4,941,000 equity shares of Rs.10 each

b) The pricing formula Rs.35/- per Option
c) Options vested 3,953,450
d) Options exercised (as at March 31, 2014) 3,821,850
e) The total number of shares arising as a result of exercise 3,821,850 equity shares of Rs.10 each
of options
f) Options lapsed (as at March 31, 2014) 1,119,150
g) Variations of terms of options Nil
h) Money realized by exercise of options 133,764,750
i) Total number of option in force (as at March 31, 2014) Nil
j) Director and Employees to whom options were granted
during the year:
i) Director(s) including Managing Director and Senior None
Management Personnel
ii) Any other employee who received a grant of options None
amounting to 5 percent or more of options granted
iii) Identified employees who were granted options None
equal to or exceeding 1 percent of the issued capital
(excluding outstanding warrants and conversions) of
the Company at the time of grant
k) Diluted Earning Per Share (EPS) pursuant to issue of Rs.55.72
shares on exercise of options calculated in accordance
with Accounting Standard (AS) 20 “Earning Per Share”
i) Methods of calculation of employee compensation Intrinsic Value Method
cost
ii) Difference between the employee compensation Employee Compensation Cost
cost so computed at i) above and the employee As per intrinsic value method – Rs 0.90 lacs
compensation cost that shall have been recognized if As per fair value method using Black Scholes
it had used the fair value of the options Model- Rs. 0.86 lacs
Difference in cost is Rs. 0.04 lacs
iii) The impact of this difference on Profits and on EPS Impact on Profits and EPS
of the Company Amortisation for the FY 13-14
As per intrinsic value method – Rs.0.90 lacs
As per fair value method using Black Scholes Model-Rs.0.86
lacs
Impact on profit-Rs.0.04 lacs
Impact on diluted EPS- Rs. Nil

17
l) Series I Series II Series III Series IV Series V Series VI

Weighted average exercise price Rs.35.00 Rs.35.00 Rs.35.00 Rs.35.00 Rs.35.00 Rs.35.00
Weighted average fair value Rs.59.04 Rs.91.75 Rs.74.85 Rs.136.40 Rs.253.90 Rs.201.45
m) Fair Value of option based on Black Scholes methodology

Series I Yr 1 Yr 2 Yr 3 Yr 4
Expected Volatility (%) 38.44 38.44 38.44 38.44
Life of the options granted (Vesting and exercise period) in years 1.50 2.50 3.50 4.50
Expected dividends per annum (Rs.) 3.00 3.00 3.00 3.00
Average risk-free interest rate (%) 5.98 6.33 6.54 6.73
Expected dividend rate (%) 2.31 2.31 2.31 2.31
Expected life of Options 4.09 years
Grant date 31.10.2005
Closing market price of share on date of option grant Rs.93.30
Series II Yr 1 Yr 2 Yr 3 Yr 4
Series III Yr 1 Yr 2 Yr 3 Yr 4

Series IV Yr 1 Yr 2 Yr 3 Yr 4
Series V Yr 1 Yr 2 Yr 3 Yr 4
Series VI Yr 1 Yr 2 Yr 3 Yr 4

19
REPORT ON
CORPORATE gOVERNANCE
ThE CoMPany’S PhILoSoPhy on CorPoraTE The Independent Directors have made disclosures confirming
govErnanCE IS aIMED aT: that there are no material, financial and/or commercial
(a) Enhancing long term Shareholder value through transactions between Independent Directors and the
Assisting the top management in taking sound Company which could have potential conflict of interest with
business decisions; and the Company at large.
Prudent financial management.
During the year under review, five meetings of the Board of
(b) Achieving transparency and professionalism in all Directors were held on May 07, 2013, July 05, 2013, July 23,
decisions and activities of the Company. 2013, October 29, 2013, and January 29, 2014.
(c) Achieving excellence in Corporate Governance by
The maximum gap between any two meetings was not more
Conforming to the prevalent guidelines on
than four months. The thirty fourth Annual General Meeting
Corporate Governance, and excelling in, wherever
was held on July 05, 2013.
possible.
Reviewing periodically the existing systems and As mandated by Clause 49, as of March 31, 2014, none
controls for further improvements. of the Directors is a member of more than ten Board level
committees and no such Director is a Chairman of more than
BoarD of DIrECTorS
five Committees of the companies in which he is a Director.
Composition
The necessary disclosures regarding Committee positions
The Board of Directors of the Company consists of have been made by the Directors.
professionals from varied disciplines. The day to day
management of the affairs of the Company is entrusted with As of March 31, 2014, the Company’s Board comprised of
the senior management personnel, headed by the Managing nine members. The Chairman of the Board is non-executive
Director, who functions under the overall supervision, Director. The Managing Director is an Executive of the
direction and control of the Board of Directors of the Company. Company.
The Board meets regularly to discuss, review and decide
upon the matters such as policy formulation, setting up of The agenda papers along with the explanatory notes for
goals, appraisal of performances with the goals and control Board Meetings are sent in advance to the Directors. In
functions, etc. Some of the powers of the Board have also some instances, documents are tabled at the meetings and
been delegated to Committee(s), which monitors the day-to- presentations are also made by the respective executives
day affairs relating to operational matters. The Board thus
on the matters related to them at the Board or Committee
exercises close control over the overall functioning of the
Meetings.
Company with a view to enhance the Shareholder value.

REPORT ON
CORPORATE gOVERNANCE (Contd.)

The names and categories of Directors, their attendance at Board Meetings held during the year and at the last Annual General
Meeting (AGM) and number of memberships/chairmanships of Directors in other Boards and Board Committees are as follows:
CoMPoSITIon of BoarD aS of MarCh 31, 2014
Total no. of Total no. of
Memberships of the Chairmanships of the
Committees of Board committees of Board
Member- Chairman
ships in -ships in
No. of whether Total audit / Member- audit / Chairman-
name of the Director Board attended no. of Investor ships Investor ships
and Category of Meetings the last Director- grievance in other grievance in other
Directorship attended agM ships Committees Committees Committees Committees
Mr. Arun Duggal 5 Yes 10 2 7 3 -
Chairman-Non- Executive
Non- Independent
Mr. Umesh Revankar 5 Yes 3 1 - - 1
Managing
Director-Executive
*Mr. R. Sridhar 4 Yes 6 - 2 1 -
Non- Executive
Non-Independent
Mr. M. S. Verma 3 Yes 6 2 - 2 2
Non-Executive,
Independent
Mr. S M Bafna 3 Yes 14 - - - -
Non-Executive,
Independent
Mr. S Lakshminarayanan 5 Yes 4 - - - 1
Non-Executive,
Independent
Mr.Puneet Bhatia 2 No 6 - - - -
Non-Executive,
Non-Independent
**Mr. Ranvir Dewan 1 Yes N.A. N.A. N.A. N.A. N.A.
Non-Executive, Non-
Independent (upto
September 02, 2013)
Mr. Amitabh Chaudhry 5 Yes 3 1 - - -
Non-Executive and
Independent Director
Mrs. Kishori Jayendra 4 Yes 4 1 - - -
Udeshi
Non-Executive and
Independent Director
REPORT ON CORPORATE GOVERNANCE Annual Report 2013-14

21
REPORT ON

notes:
1. While considering the total number of directorships of Directors, their directorships in private companies, Section 25
companies and foreign companies, if any, have been included and their directorship in the Company has been excluded.
2. The memberships and chairmanships of Directors in committees do not include their memberships and chairmanships in the
Company.
3. The memberships and chairmanships of Directors in committees include their memberships and chairmanships in the wholly
owned subsidiaries of the Company.
4. None of the above Directors are related inter- se.
5. *Mr. R. Sridhar participated in one Meeting through tele-conference.
6. ** Mr. Ranvir Dewan cease to be director of the Company w.e.f. September 02, 2013.
Policy for prohibition of Insider Trading: Reviewing the adequacy of internal audit function
In compliance with the provisions of SEBI (Prohibition of including the structure of the internal audit department,
Insider Trading) Regulations, 1992, (as amended from time to staffing and seniority of the official heading the
time) and to preserve the confidentiality and prevent misuse department, reporting structure, coverage and frequency
of unpublished price sensitive information, the Company has of internal audit.
adopted a Code for Prohibition of Insider Trading for Directors/ Reviewing, with the management, the statement of
Officers and Designated employees of the Company, relating uses / application of funds raised through an issue
to dealings by them in the securities of the Company. (public issue, rights issue, preferential issue, etc.), the
The Code also provides for periodical disclosures from statement of funds utilized for purposes other than those
Directors/Officers and Designated employees as well as pre- stated in the offer document/prospectus/notice and the
clearance of transactions by such persons. report submitted by the monitoring agency monitoring
the utilization of proceeds of a public or rights issue and
auDIT CoMMITTEE
making appropriate recommendations to the Board to
The Audit Committee of the Company is constituted in line take up steps in this matter.
with the provisions of Clause 49 of the Listing Agreements
Discussing with Internal auditors on any significant
with the Stock Exchanges read with Section 292A of the
findings and follow up there on.
Companies Act, 1956.
Terms of reference Reviewing the findings of any internal examinations
by the Internal auditors into matters where there is
The terms of reference of the Audit Committee, inter alia
suspected fraud or irregularity or a failure of internal
includes:
control systems of a material nature and reporting the
Overseeing the financial reporting process.
matter to the Board.
To ensure proper disclosure in the quarterly, half yearly
Discussing with statutory auditors before the audit
and Annual Financial Statements.
commences, about the nature and scope of audit as
To recommend appointment, re-appointment of auditors well as post-audit discussion to ascertain any area of
and the fixing of their remuneration. Approval of payment concern.
to statutory auditors for any other services rendered by
To discuss with the management, the senior internal audit
them.
executives and the statutory auditor/s the Company’s
Reviewing, with the management, the Financial major risk exposures and guidelines and policies to
Statements before submission to the Board. govern the processes by which risk assessment and risk
management is undertaken by the Company, including
Reviewing, with the management, performance of
discussing the Company’s major financial risk exposures
statutory and Internal auditors, adequacies of the
and steps taken by management to monitor and mitigate
internal control systems.
such exposures and from time to time conferring with

REPORT ON

another Committee/s of the Board about risk exposures rEMunEraTIon CoMPEnSaTIon anD noMInaTIon
and policies within the scope of such other Committee’s CoMMITTEE
oversight. Terms of reference
To look into the reasons for substantial defaults in The terms of reference of the Remuneration Compensation
the payment to the depositors, debenture holders, and Nomination Committee, inter alia includes:
shareholders (in case of non-payment of declared Executive Remuneration
dividends) and creditors, if any. The Committee is responsible for assisting the Board of
To review the functioning of the Whistle Blower Directors in the Board’s overall responsibilities relating to
Mechanism. determination on their behalf and on behalf of the Shareholders
Approval of appointment of CFO (i.e., the whole-time with agreed terms of reference, the Company’s policy on
Finance Director or any other person heading the finance specific remuneration packages and any compensation
function or discharging that function) after assessing payment for the Managing Director/ Whole-time Directors and
the qualifications, experience & background, etc. of the Executive Directors. The role of the Committee includes:
candidate. To provide independent oversight of and to consult with
Carrying out any other function as is mentioned in the management regarding the Company’s compensation,
bonus, pension and other benefit plans, policies and
terms of reference of the Audit Committee.
practices applicable to the Company’s executive
To review the financial Statements, in particular, the management.
investments made by the unlisted subsidiary company/ To develop guidelines for and annually review and
ies. approve (a) the annual basic salary, (b) the annual
During the year under review, four meetings were held incentive and bonus, including the specific goals and
amount and (c) equity compensation for the Managing
on May 07, 2013, July 22, 2013, October 29, 2013, and
Director and the other executive officers of the
January 28, 2014.The maximum gap between any two
Company.
meetings was not more than four months.
To review and approve (a) employment agreements,
The necessary quorum was present for all the meetings. severance arrangements and change in control
agreements/ provisions and (b) any other benefits,
Composition
compensation or arrangements for the Managing Director
No. of and the other executive officers of the Company.
Name of Meetings
To recommend the appointment of the Director to the
the Member Category Attended
Board.
Mr. M. S. Verma – Non-Executive,
4 Employees Stock option Scheme (ESoS)
Chairman Independent
Mr. Puneet Bhatia Non-Executive, 1 The Committee is responsible for assisting the Board of
Non- Independent Directors in the Board’s overall responsibilities relating to
Mr. S. M. Bafna Non-Executive, 3 ESOS including, administration of the Company’s stock
Independent incentive plans, and other similar incentive plans, and
*Mrs. Kishori Udeshi Non-Executive, 3 interpret and adopt rules for the operation thereof.
Independent The Committee’s responsibility also covers establishment of
guidelines for and approval of the grant of stock Options to key
*The Board of Directors in its meeting held on July 05, 2013
employees, officers and directors of the Company, including
appointed Mrs. Kishori Udeshi, Independent Director as a determination of the number of shares to be covered by each
new member of the Audit Committee. Option, whether the Option will be an incentive stock Option
The Company Secretary acts as the Secretary for the Audit or otherwise, and the vesting schedule for such Options.
Committee. The Statutory Auditors, Internal Auditor, the During the year under review, three meetings of the Committee
Managing Director and the Chief Financial Officer and the were held on July 05, 2013, October 29, 2013 and January
29, 2014.
Head of Accounts Department of the Company attend and
participate in the meetings of the Audit Committee. The necessary quorum was present for all the meetings.

23
REPORT ON

advise and inputs provided by the Independent Directors.
Composition The Independent Directors devote their valuable time in
deliberating on the strategic and critical issues in the course
No. of
of the Board and Committee meetings of the Company and
Name of the Meetings
Member Category Attended give their valuable advice, suggestion and guidance to the
management of the Company from time to time.
Mr. S. Non Executive- 3
Lakshminarayan - Independent Non-Executive Directors get sitting fees for attending each
Chairman
meeting of the Board of Directors/Committees thereof and
Mr. Puneet Bhatia Non Executive – 1 reimbursement of out-of-pocket expenses incurred, wherever
Non - Independent
applicable, for attending such meetings. The sitting fee is
Mr. S. M. Bafna Non Executive- 3
payable only to Independent Directors. The sitting fee payable
Independent
per meeting is as under:
remuneration policy of the Company
for Managing Director a) Board meeting Rs. 20,000/-
The Managing Director is paid a fixed quantum of salary b) Committee meeting Rs. 15,000/-
and perquisites. He is also eligible for such percentage of
commission/incentive as may be recommended by the In addition to the sitting fees, Independent Directors are also
Remuneration Compensation and Nomination Committee paid Commission as per the Special resolution passed by
based on the overall performance of the Company, which shall
the shareholders in their 34th AGM held on July 05, 2013.
be within the overall limits permissible under the Companies
The Board of Directors at its meeting held on April 29, 2014
Act, 1956 and as approved by the Shareholders.
has approved payment of Commission to the Independent
Remuneration paid to the Managing Director for the financial
Directors for the Financial Year 2013-14. The criteria for
year 2013 - 2014 is given elsewhere in this Report.
payment of commission has been posted on the Company’s
For Non Executive Independent Directors
website i.e. www.stfc.in.
The Company is being benefited from the expertise,

REPORT ON

The details of sitting fees/remuneration/commission paid/to be paid to the Directors during the year 2013 - 14 are as under:
Sitting fees Salary,

Sr. for attending Perquisites Commission Total
No. name of the Director Meetings (Rs.) & ESOS (Rs.) (Rs.) (Rs.)
1 Mr. Arun Duggal, - - - -
Chairman
2 Mr. Umesh Revankar - 48,17,853/- - 48,17,853/-

Managing Director
3 Mr. R. Sridhar - - - -
4 Mr. M. S. Verma 1,20,000/- - 5,00,000/- 620,000/-
5 Mr. S. M. Bafna 4,35,000/- - 5,00,000/- 9,35,000/-
6 Mr. S. Lakshminarayanan 2,05,000/- - 5,00,000/- 7,05,000/-
7 Mr. Puneet Bhatia - - - -
8 Mr. Ranvir Dewan - - - -
9 Mr. Amitabh Chaudhry 1,30,000/- - 5,00,000/- 6,30,000/-
10 Mrs. Kishori Udeshi 1,40,000/- - 5,00,000/- 6,40,000/-
Service Tax on sitting fees paid to 62,727/-
the Directors
notes:
Mr. Umesh Revankar was appointed as the Managing Director of the Company for a period of 5 years with effect from April
01, 2012 by the shareholders at their 33rd Annual General Meeting held on July 5, 2012. His remuneration includes salary and
incentive of Rs. 33,00,000/-p.a, Perquisites of Rs. 11,10,908/- contribution to Provident Fund of Rs. 3,88,800/- and applicable
discount of Rs. 18,145/- on Stock Options. The appointment may be terminated by giving three months notice in writing or salary
in lieu thereof. No severance fees are payable on termination of employment.
The Commission for the year ended March 31, 2014 will be paid to all Independent Directors subject to deduction of tax after
adoption of Accounts by the Shareholders in the ensuing 35th AGM of the Company.
SharEhoLDErS’/ InvESTorS’ grIEvanCE

Details of Shares / warrants held by the Directors as
CoMMITTEE
on March 31, 2014, are as below:
Terms of reference
Name of the Director Share / Warrant holdings
Mr. Arun Duggal - The Committee is responsible for assisting the Board of
Directors in the Board’s overall responsibilities relating
Chairman
to attending to and redressal of the grievances of the
Mr. Umesh Revankar 55,184 shares shareholders and the investors of the Company.
Managing Director The Committee in particular looks into:
Mr. R. Sridhar -
The listing of securities on stock exchanges.
Mr. M. S. Verma -
The Shareholders’ and investors’ complaints on matters
Mr. S. M. Bafna 1,200 shares
relating to transfer of shares, non-receipt of annual
Mr. S. Lakshminarayanan -
report, non-receipt of dividends and matters related
Mr. Puneet Bhatia - thereto.
Mr. Amitabh Chaudhry -
The matters that can facilitate better investor services
Mrs. Kishori Udeshi -
and relations.

25
REPORT ON

Attending to investors’ queries and complaints regarding
Shareholders’/Investors’ Complaints
transfer, dividend, annual reports, etc.
No. of Complaints
Attending to complaints of investors routed by SEBI/
Stock Exchanges/RBI. Non
Convertible
The amounts transferable to Investor Education and Status of Complaints Equity Debentures
Protection Fund.
Complaints pending as on NIL NIL
The profile of investors.
April 01, 2013
Taking decision on waiver of requirement of obtaining
the Succession Certificate/Probate of Will on case to Complaints received during the 7 15
case basis within the parameters set out by the Board of period April 01, 2013 to
Directors. March 31, 2014
Taking decisions in connection with issue of global Complaints identified and 7 15
depository receipts, and reported under Clause 41 of the
The secretarial audits. Listing Agreement
During the year, the Committee met four times on April 18, Complaints disposed of during 6 15
2013, July 05, 2013, October 28, 2013 and January 29, the year ended March 31, 2014
2014. Complaints unresolved as of 1* NIL
The necessary quorum was present for all the meetings. March 31, 2014
Composition *Since resolved.

No. of These complaints have been attended on time and none of
name of the Meetings
Member attended the complaints were pending for a period exceeding 30 days.
Category
Mr. Vivek M. Achwal, Company Secretary is designated as
Mr. S. Non Executive- 4
Lakshminarayanan Independent Compliance Officer of the Company.
– Chairman BanKIng anD fInanCE CoMMITTEE
Mr. Umesh Managing Director- 4 Terms of reference
Govind Revankar Executive
The Banking and Finance Committee has been formed to
The status of investor grievances is monitored by the
monitor resources mobilisation and to ensure efficient and
Committee periodically and the minutes of the Committee are
timely decisions on the matters relating to banking and finance
made available to the Board. The complaints received from
activities of our Company. The Committee meets regularly to
the Shareholders, SEBI, Stock Exchanges and others are
discharge its functions.
reviewed and they are replied to by the Company/Registrar
& Share Transfer Agents regularly. The status of the pending During the year under review, the Committee met 37 times.
complaints as well as the system of redressal mechanism is The necessary quorum was present for all the meetings.
reviewed by the Committee periodically.

REPORT ON

Profit planning and growth projection
Composition
Forecasting and analysing future business environment
No. of and preparation of contingency plans.
name of the Meetings
Member Category attended During the year under review, the Committee met four times
on April 29, 2013, July 23, 2013, and October 29, 2013.
Mr. Umesh Revankar Managing Director 34 The necessary quorum was present for all the meetings.
- Chairman and CEO
Composition
Mr. Parag Sharma Member 36
No. of
Mr. Vinay Kelkar Member 34 name of the Meetings
Member Category attended
aSSET LIaBILITy ManagEMEnT CoMMITTEE
Mr. Umesh Revankar Managing Director- 3
Terms of reference - Chairman Executive
The Committee is responsible for assisting the Board
of Directors in Balance Sheet planning from risk-return Mr. RanvirDewan Non Executive-Nominee -
perspective including the strategic management of interest (upto September 02, of Newbridge India
2013) Investments II Ltd.
and liquidity risk. Its function includes -
Liquidity risk management Mr. Parag Sharma Member 3
Management of market risks *Mrs. Kishori Udeshi Member 1
Funding and capital planning *The Board of Directors in its meeting held on Oct. 29, 2013
appointed Mrs. Kishori Udeshi, Independent Director as a
new member of the Asset Liability Management Committee.
gEnEraL BoDy MEETIngS
Details of location and time of holding the last three annual general Meetings (agM):
Year AGM Location Date & Time

2010-11 32nd AGM Sri Thyaga Brahma Gana Sabha, June 24, 2011 at 11.00 A.M
‘Vani Mahal’, 103, G.N. Road, T. Nagar, Chennai - 600 017.
2011-12 33rd AGM Narada Gana Sabha (Main Hall) July 05, 2012 at 11.00 A.M
No, 314, TTK Road, Alwarpet, Chennai - 600 018.
2012-13 34th AGM Narada Gana Sabha (Main Hall), July 05, 2013 at 11.00 A.M
No, 314, TTK Road, Alwarpet, Chennai - 600 018.
a) At the 32nd AGM held on June 24, 2011, special of the Companies Act, 2013 (Act) (b) three special
resolution was passed whereby Articles 46 to 49 and resolutions are proposed through e-voting system
Articles 64 to 81 were deleted and the existing article namely, i) to borrow monies for the purpose of the
from 50 to 63 renumbered as articles 46 to 59. business of Company under Section 180(1)(c) of the Act,
b) No special resolution was passed in the 33rd AGM. ii) issue of securities under Section 42 of the Act on
private placement basis and iii) alteration of the Articles
c) At the 34th AGM held on July 05, 2013, no special
of Association of the Company under Section 14 of the
resolution was passed through Postal Ballot. However,
Act. Details of special resolutions are given in the notice
a special resolution was passed for payment of
Commission out of the net profit of the company of the ensuing AGM. Procedure for Postal Ballot for
certain special resolutions is mentioned in the Postal
computed in the manner laid down in Section 349 and
350 of the Companies Act,1956 to the non-executive Ballot Notice dated May 27, 2014.
independent directors for a period of five years ending
March 31, 2017. A special resolution was also passed for SuBSIDIary CoMPanIES
alteration of Articles of Association of the Company. The Company has two wholly owned subsidiaries by name
d) At the ensuing AGM to be held on July 09, 2014, (a) Shriram Equipment Finance Company Limited (SEFCL) and
Two special resolutions are proposed for passing
Shriram Automall India Limited (SAIL). These subsidiary
through Postal Ballot namely, i) Creation of Security
companies are non-material unlisted subsidiaries of the
in respect of borrowings and ii) Selling, assigning,
Company.
securitizing Receivables under Section 180(1)(a)

27
REPORT ON

Mr. M.S.Verma and Mr.S.Lakshminarayanan, independent ShrIraM EquIPMEnT fInanCE CoMPany LIMITED
directors of the Company, are directors on the Board of (SEfCL)
Directors of SEFCL and SAIL respectively. SEFCL is engaged in equipment financing business and was
incorporated on December 15, 2009. It has been registered
The Audit Committee of the Company regularly reviews the
as a Non-Deposit Accepting NBFC vide certificate dated
financial statements, in particular, the investments, if any,
October 08, 2010 issued by Reserve Bank of India under
made by the subsidiary companies. Besides, the minutes
Section 45 IA (4) of Reserve Bank of India Act, 1934.
of the board meetings of the subsidiaries are placed at the
Board meeting of the Company periodically. There are no Board of Directors of SEFCL:
significant transactions and arrangements entered into by The composition of the Board of Directors of SEFCL is as
the subsidiary companies during the financial year ended follows.
March 31, 2014 requiring it to be brought to the attention of 1. Mr. M.S. Verma - Chairman
the Board of Directors of the Company. 2. Mr. R. Sridhar
The disclosures in terms of clause 32 of the Listing Agreement 3. Mr. G. S. Sundararajan
relating to Loans and advances in the nature of loans to 4. Mr. Amol Jain and
subsidiaries are given in the Annual Report of the Company. 5. Mr. Pratap Paode
CaPITaL STruCTurE of SEfCL:

The Capital Structure of SEFCL as on March 31, 2014 is as follows:
(Rs.)
Particulars as at 31/03/2014 as at 31/03/2013
authorised capital
25,00,00,000 Equity Shares of Rs. 10/- each 2,500,000,000 2,500,000,000
75,000,000 Compulsorily Convertible Preference Shares of Rs. 100/- each 7,500,000,000 7,500,000,000
10,000,000,000 10,000,000,000
Issued, Subscribed and fully Paid up capital
10,000,000 Equity Shares of Rs. 10/- each 100,000,000 100,000,000
25,000,000 Compulsorily Convertible Preference Shares of Rs. 100/- each 2,500,000,000 2,500,000,000
2,600,000,000 2,600,000,000
ShrIraM auToMaLL InDIa LIMITED (SaIL)

SAIL is providing facilitation services for disposal of pre-owned used and repossessed/refurbished vehicles, Farm / Agriculture,
Construction & Industrial Equipment / Machinery of all types and categories. SAIL has so far opened 32 Automalls at different
locations of India.
Board of Directors of Shriram Automall India Limited
1. Mr. S. Lakshminarayanan - Chairman
2. Mr. Umesh Revankar
3. Mr. D.V. Ravi
4. Mr. Gaurav Trehan and
5. Mr. Sameer Malhotra
Capital Structure of SaIL:

The Capital Structure of SAIL as on March 31, 2014 is as follows:
(Rs.)
Particulars as at 31/03/2014 as at 31/03/2013
authorised capital
100,000,000 Equity Shares of Rs. 10/- each 1,000,000,000 1,000,000,000
1,000,000,000 1,000,000,000
Issued, Subscribed and fully Paid up capital
30,000,000 Equity Shares of Rs. 10/- each 300,000,000 300,000,000
300,000,000 300,000,000

REPORT ON

In terms of the Circular No: 2/2011 dated February 08, 2011 Company applicable to the Board and Senior Management
of the Ministry of Corporate Affairs, Government of India, Personnel is also posted on the website of the company.
the Board of Directors of the Company has by resolution The Company has adopted the Whistle Blower Policy and
given their consent for not attaching the Annual Reports of has established the necessary mechanism in line with Clause
the subsidiaries to the Balance Sheet of the Company. The 49 of the Listing Agreement with the Stock Exchanges, for
Consolidated financial statements of the Company with that employees to report concerns about unethical behavior. No
of the subsidiaries duly audited by the Company’s statutory person has been denied access to the Audit Committee.
auditors are presented elsewhere in the Annual Report. The
The Company has complied with all the mandatory
consolidated financial statements attached to this Annual
requirements as stipulated in clause 49 of the Listing
Report are prepared in compliance with the applicable
Agreement and fulfilled the following non-mandatory
Accounting Standards and Listing Agreement.
requirements as prescribed in Annexure I D to Clause 49 of
The annual reports and the annual accounts of the the Listing Agreement with the Stock Exchanges;
subsidiaries and the related detailed information shall be
a. The Company has set up a Remuneration
made available to shareholders of the Company and the
Compensation and Nomination Committee. Please see
subsidiaries seeking such information at any point of time.
para on Remuneration Compensation and Nomination
The annual accounts of the subsidiaries shall also be kept
Committee for details.
for inspection by any shareholders at the Registered Office
of the Company and of the respective subsidiaries. The b. The Company has adopted the Whistle Blower Policy.
Company shall furnish hard copy of details of accounts of the Capital audit
subsidiaries to any shareholder on demand. The capital audit as required under Regulation 55A of SEBI
Further, the annual accounts of the subsidiaries shall be (Depositories and Participants) Regulations, 1996 read
available on the website of the Company viz. www.stfc.in and with SEBI Circular No. D&CC/FITTC/Cir-16/2002 dated
shall also be provided to the Shareholders on their written 31/12/2002 and SEBI Circular No. CIR/MRD/DP/30/2010,
request to the Company. a Qualified Practicing Company Secretary carries out
Capital Audit to reconcile the total admitted equity capital
Disclosures
with National Securities Depository Limited (NSDL) and the
There are no materially significant related party transactions
Central Depository Services (India) Limited (CDSL) and the
with the Company’s promoters, directors, key managerial total issued and listed equity capital. This audit is carried out
personnel or their relatives, which may have potential conflict every quarter and the report thereon is submitted to the Stock
with the interest of the Company at large. Exchanges and to the Board of Directors.
Disclosures on transactions with related parties, as required CErTIfICaTIon By ManagIng DIrECTor anD ChIEf
under the Indian Accounting Standard 18, have been fInanCIaL offICEr
incorporated in the Notes to the Accounts.
Certification by the Managing Director and the Chief Financial
There are no instances of non-compliance by the Company, Officer is provided elsewhere in the Annual Report.
penalties or strictures imposed on the Company by the Stock MEanS of CoMMunICaTIon
Exchanges and SEBI, or any statutory authority on any matter
The audited financial results, the quarterly results and half-
related to capital markets during the last three years.
yearly results of the Company are published in English (The
The Company has adopted Code of Conduct (‘Code’) for the Economic Times) and Tamil newspapers (Makkal Kural).
Members of the Board and Senior Management Personnel Press release are also given in the leading newspapers. Up-
as required under Clause 49 of the Listing Agreement. All to-date financial results, press releases and other general
the Board Members and the Senior Management Personnel information about the Company are also available on the
have affirmed compliance of the Code. The Annual Report of Company’s website www.stfc.in.
the Company contains a declaration to this effect signed by Our Company does NSE Online filing through web based
the Managing Director. Further, the Code of Conduct of the application: NEAPs and BSE Online filing.

29
REPORT ON

35th annuaL gEnEraL MEETIng
Particulars as at 31/03/2014
a. Date and Time July 09, 2014 at 11.00 A.M
b. Venue The Music Academy, T.T.Krishnamachari Auditorium (Main
Hall), No. 168, T.T.K. Road, Royapettah, Chennai - 600 014
c. Book Closure Date June 27, 2014 to July 09, 2014 (both days inclusive)
d. Dividend An Interim Dividend of 30% was declared by the Board of
Directors at its meeting held on October 29, 2013 and the
payments thereof were effected on November 25, 2013.
The payment of final dividend, upon declaration by the
shareholders at the Annual General Meeting, will be made on or
after July 11, 2014.
e. Financial Calendar 2014 - 2015
Annual General Meeting September 2015
Unaudited results for the quarter ending June 30, 2014 Last week of July, 2014
Unaudited results for the quarter/audited results for half - Last week of October 2014
year ending September 30, 2014
Unaudited results for the quarter ending Last week of January 2015
December 31, 2014
Audited results for the year ending March 31, 2015 May 2015
f. Stock Code
BSE Limited 511218
National Stock Exchange of India Limited SRTRANSFIN
Demat ISIN in NSDL & CDSL INE721A01013
The Company has paid the annual listing and custodian fees for the financial year 2014 -15 to the stock exchanges and
depositories.
The Company’s Non-Convertible Debentures (NCDs) offered for subscription to public under the Prospectus dated July 16, 2009,
May 06, 2010, June 16, 2011, July 16, 2012, July 05, 2013 and September 23, 2013 are listed on NSE and BSE. The ISIN details
for these NCDs are as under:
Coupon
Codes Duration Put and
Security in Stock Coupon and Interest Date of Call
Description ISIn Exchanges (%) p.a. Payable allotment Maturity Dates option
nCDs I - 2009
Secured NCDs INE721 BSE - 934785 11.00% (*) SEMI-ANNUAL 27/08/2009 20% of Face value to be NA
(Option I) A07952 NSE- N1 redeemed on 26/08/2014
Secured NCDs INE721 BSE - 934786 11.25% (*) ANNUAL 27/08/2009 20% of Face value to be NA
(Option II ) A07960 NSE - N2 redeemed on 26/08/2014
Secured NCDs INE721 BSE - 934787 11.03% to be CUMULATIVE : 27/08/2009 26/08/2014 NA
(Option III) A07978 NSE -N3 compounded QUARTERLY
quarterly
Secured INE721 BSE - 11.00% ANNUAL 27/08/2009 26/08/2014 NA
NCDs A07986 934788
(Option IV) NSE - N4
nCDs II - 2010
Secured INE721 BSE - 9.75% (*) ANNUAL 02/06/2010 01/06/2015 NA
NCDs (Option A07AL7 934793
I) (Reserved NSE - N6
Individuals)

REPORT ON

Coupon
NCDs A07AK9 934794
(Option I) NSE - N7
(Unreserved
Individuals)
NCDs (Option A07AJ1 934795
I) (Others) NSE - N8
Secured INE721 BSE – 10.25% (*) SEMI-ANNUAL 02/06/2010 01/06/2017 Note -
NCDs (Option A07AO1 934796 ($)
II) (Reserved NSE - N9
Individuals)
Secured INE721 BSE - 10.00% SEMI-ANNUAL 02/06/2010 01/06/2017 Note -
NCDs A07AN3 934797 ($)
(Option II) NSE - NA
(Unreserved
Individuals)
Secured INE721 BSE - 9.50% SEMI-ANNUAL 02/06/2010 01/06/2017 Note -
NCDs (Option A07AM5 934798 ($)
II) (Others) NSE - NB
Secured INE721 BSE - 10.5% (*) ANNUAL 02/06/2010 • 40% of Face value NA
NCDs (Option A07AR4 934799 to be redeemed on
III) (Reserved NSE - NC 01.06.2014
Individuals) • 20% of Face value
to be redeemed on
01/06/2015
Secured INE721 BSE - 10.25% ANNUAL 02/06/2010 • 40% of Face value NA
NCDs A07AQ6 934800 to be redeemed on
(Option III) NSE - ND 01.06.2014
(Unreserved • 20% of Face value
Individuals) to be redeemed on
01/06/2015
Secured INE721 BSE - 9.75% ANNUAL 02/06/2010 • 40% of Face value NA
NCDs (Option A07AP8 934801 to be redeemed on
III) (Others) NSE - NE 01.06.2014
• 20% of Face value
to be redeemed on
01/06/2015
Unsecured INE721 BSE - NA NA 02/06/2010 100% to be redeemed NA
double bond A08984 934802 on 01/12/2016 plus a
NCDs (Option NSE - NF premium of Rs.1000/-
IV) Reserved
Individuals)
double A08976 934803 on 01/03/2017 plus a
bond NCDs NSE - NG premium of Rs.1000/-
(Option IV)
(Unreserved
Individuals)

31
REPORT ON

Coupon
double bond A08968 934804 NSE on 01/06/2017 plus a
NCDs (Option - NH premium of Rs.1000/-
IV) (Others)
Unsecured INE721 BSE - 11.00% ANNUAL 02/06/2010 01/06/2017 NA
NCDs (Option A08AC4 934805
V) (Reserved NSE - NI
Individuals)
NCDs A08AB6 934806
(Option V) NSE - NJ
(Unreserved
Individuals)
NCDs (Option A08AA8 934807
V) (Others) NSE - NK
nCDs III - 2011
Secured INE721 BSE - 11.60% ANNUAL 12/07/2011 11/07/2016 Note
NCDs (Option A07AV6 934811 NSE - (^)
I) (Reserved) - NL
Secured INE721 BSE - 11.35% ANNUAL 12/07/2011 11/07/2016 Note
NCDs A07AW4 934812 - (^)
(Option I) NSE - NM
(Unreserved)
Secured INE721 BSE – 11.10% ANNUAL 12/07/2011 11/07/2016 Note
NCDs (Option A07AX2 934810 - (^)
I) (Others) NSE – NN
Secured INE721 BSE – 11.35% ANNUAL 12/07/2011 11/07/2014 NA
NCDs (Option A07AY0 934814
II) (Reserved) NSE – NO
NCDs A07AZ7 934815
(Option II) NSE – NP
(Unreserved)
NCDs (Option A07BA8 934813
II) (Others) NSE – NQ
nCDs Iv - 2012
Secured INE721 BSE - (&) 10.25% ANNUAL 10/08/2012 09/08/2015 NA
Redeemable A07DL1 934850
NCDs NSE - NR
(Series I)
Secured INE721 BSE - (&) 10.50% ANNUAL 10/08/2012 09/08/2017 NA
Redeemable A07DM9 934851
NCDs NSE - NS
(Series II)

REPORT ON

Coupon
Secured INE721 BSE - NA NA 10/08/2012 09/08/2015 N.A.
Redeemable A07DN7 934852
NCDs NSE - NT
(Series III)
Secured INE721 BSE - NA NA 10/08/2012 09/08/2017 N.A.
Redeemable A07DO5 934853
NCDs NSE - NU
(Series IV)
nCDs v- July 2013
Secured INE721 BSE – (~) 9.65% ANNUAL 01/08/2013 01/08/2016 NA

NCDs A07FU7 934886 (Since 31/07/2016
(Series I) NSE – NV falls on Sunday,
hence payment will be
made on next working
date 01/08/2016).
Secured INE721 BSE – (@) 9.80% ANNUAL 01/08/2013 31/07/2017 (50% of NA
NCDs A07FV5 934887 the Face Value of the
(Series II) NSE – NW NCDs payable at the
end of the 48 months
from Date of
Allotment) and
31/07/2018 (Remaining
50% of the Face Value
of the NCDs payable
at the end of the 60
months from Date of
Allotment)
Secured INE721 BSE – (#) 9.40% MONTHLY 01/08/2013 31/07/2018 NA
NCDs A07FW3 934888
(Series III) NSE – NX
Secured INE721 BSE – NA NA 01/08/2013 01/08/2016 (Since NA
NCDs A07FX1 934889 31/07/2016 falls
(Series IV) NSE – NY on Sunday, hence
payment will be made
on next working date
01/08/2016).
Secured NE721 BSE – NA NA 01/08/2013 31/07/2017 (50% of NA
NCDs A07FY9 934890 the Face Value of the
(Series V) NSE – NZ NCDs payable at the
from Date of Allotment)
and 31/07/2018
(Remaining 50% of
the Face Value of the
NCDs payable at the
from Date of
Allotment)

33
REPORT ON

Coupon
nCDs vI - october 2013
Secured INE721 BSE – (&&) ANNUAL 24/10/2013 24/10/2016 NA
NCDs A07GR1 934915 10.75%
(Series I) NSE – Y1
Secured INE721 BSE – (##) ANNUAL 24/10/2013 24/10/2018 NA
NCDs A07GS9 934916 10.75%
(Series II) NSE – Y2
Secured INE721 BSE – ($$) ANNUAL 24/10/2013 24/10/2020 NA
NCDs A07GT7 934917 10.75%
(Series III) NSE – Y3
Secured INE721 BSE – NA NA 24/10/2013 24/10/2016 NA
NCDs A07GU5 934918
(Series IV) NSE – Y4
NCDs A07GV3 934919
(Series V) NSE – Y5
NCDs A07GW1 934920
(Series VI) NSE – Y6
note:
1. (*) - Senior Citizens (First Allottee) shall be entitled to an additional interest at the rate of 0.25 % per annum.
2. ($) -Put / Call option from 02-June-2015
3. Not Applicable: NA
4. (^) - Exercise of Put / Call option from July 12, 2015.
5. (&) – NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 0.90% per annum for NCDs
held on any Record Date.
6. (~) – NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 1.25% per annum for NCDs
7. (@) – NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 1.35% per annum for NCDs
8. (#) – NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 1.23% per annum for NCDs
9. (&&) – NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 0.50% per annum for
NCDs held on any Record Date.
10. (##) – NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 0.75% per annum for NCDs
11. ($$) – NCD Holders who are Individuals shall be eligible for the additional incentive on coupon @ 1.00% per annum for NCDs
Pursuant to Section 205A and 205C and other applicable provisions, if any, of the Companies Act, 1956, all unclaimed/unpaid
dividends up to financial year – 2005-06 (Final Dividend), 2006-07 (Interim Dividend), have been transferred to the Investor
Education and Protection Fund established by the Central Government. No claim shall lie against the said Fund or the Company
for the amounts so transferred nor shall any payment to be made in respect of such claim. Members who have not yet encashed
their dividend warrant(s) for the financial years from – 2006-07 (Interim Dividend) are requested to make their claims without any
delay to the Company’s Registrar and Share Transfer Agents, Integrated Enterprises (India) Limited.

REPORT ON

gEnEraL SharEhoLDEr InforMaTIon
g. Stock Market Data
The high and low market price and volume of shares traded during each month of the financial year ended March 31, 2014,
are given below :
BSE Limited National Stock Exchange of India Ltd.
Share Prices Share Prices
Months High (Rs.) Low (Rs.) Volume High (Rs.) Low (Rs.) Volume
April 2013 751.90 640.00 1916589 752.50 638.10 12109394
May 2013 841.80 723.00 24452646 842.70 725.75 14723929
June 2013 819.30 635.05 454417 825.00 634.10 10467786
July 2013 724.60 611.00 458009 724.45 610.25 11410698
August 2013 659.95 465.20 296117 655.00 464.10 10204432
September 2013 646.00 490.50 541561 648.60 490.10 8493666
October 2013 624.50 545.75 434016 624.80 545.00 8994433
November 2013 648.50 544.20 356702 650.00 543.40 5899326
December 2013 705.00 584.00 319143 681.00 581.70 7308800
January 2014 680.05 596.00 380240 680.00 594.15 6549323
February 2014 631.80 550.00 291483 632.00 548.70 7435403
March 2014 775.50 567.00 697000 779.60 566.00 15428262
h. STFC Share Price performance in comparison to BSE Sensex and S&P CNX Nifty:
STFC Share Price at BSE and BSE Sensex
1050.00 25000.00
950.00
STfC Share Price at BSE (Closing)
850.00 20000.00
750.00
BSE Sensex
650.00 15000.00
550.00
450.00 10000.00
350.00
250.00 5000.00
150.00
50.00 0.00
Apr - 13
Jun - 13
Aug - 13
Sep - 13
Jan - 14
May - 13
Jul - 13
Oct - 13
Nov - 13
Dec - 13
Feb - 14
Mar - 14
STFC Share Price at BSE BSE Sensex

35
REPORT ON

STfC Share Price at nSE and CnX nIfTy
950.00 7000.00
850.00 6500.00
STfC Share Price at nSE (Closing)
750.00
6000.00
650.00
5500.00
CnX nifty
550.00
5000.00
450.00
4500.00
350.00
4000.00
250.00
3500.00
150.00
50 3000.00
Apr - 13
Jun - 13
Aug - 13
Sep - 13
Jan - 14
May - 13
Jul - 13
Oct - 13
Nov - 13
Dec - 13
Feb - 14
Mar - 14
STFC Share Price at NSE CNX Nifty
i. Registrar and Share Transfer Agents

The Registrar and Share Transfer Agents of the Company are:
Integrated Enterprises (India) Limited
2nd Floor, Kences Towers, No. 1, Ramakrishna Street, North Usman Road, T Nagar, Chennai - 600 017
Ph: 044 - 2814 0801 - 03 Fax no: 044 – 28142479
Email: [email protected]
Website :www.integratedindia.in
j. Share Transfer System
The authority to approve share transfers has been delegated by the Board of Directors to the Share Transfer Committee.
Requests received for transfer of shares are attended to once in a week.
k. Distribution of shareholding as on March 31, 2014
No. of Equity shares No. of Shareholders % of Shareholders No. of Shares held % of Shareholding
1 - 500 33409 82.28 4925969 2.17
501 - 1000 4410 10.86 3285803 1.45
1001 - 2000 1414 3.48 2006522 0.88
2001 - 3000 417 1.03 1039302 0.46
3001 - 4000 141 0.35 502779 0.22
4001 - 5000 137 0.34 628469 0.28
5001 - 10000 204 0.5 1490268 0.66
10001 and above 470 1.16 213003624 93.88
Total 40602 100.00 226882736 100.00

REPORT ON

Enterprises (India) Limited. As on March 31, 2014, the
l. Categories of shareholders as on March 31, 2014
total of 220772292 equity shares constituting 97.31%of
Category of No. of % of
the paid up capital, have been dematerialized.
Shareholders Shares held shareholding
n. The Company has not issued any GDRs/ADRs, warrants
Promoters and 59103162 26.05
Promoter Group or other instruments which are pending for conversion.
o. Address for correspondence & Registered Office:
Mutual Funds/ UTI 2348326 1.04
Registered Office:
Financial Institutions 13980 0.01
/ Banks Mookambika Complex, 3rd Floor,
No.4, Lady Desika Road, Mylapore,
Foreign Institutional 111044991 48.94
Investors Chennai – 600 004, Tamil Nadu, India.
Tel.: 91-44-24990356, Fax: 91-44-24993272
Qualified Foreign 11273933 4.97
Investor Head Office:
Bodies Corporate 25709413 11.33 Wockhardt Towers, Level-3,
West Wing, C-2, G-Block, Bandra-Kurla Complex,
Individuals 15586245 6.87
Bandra - (East), Mumbai - 400 051.
NRI'S / OCB's / 359623 0.16
Phone: 91-22 - 40959595,
Foreign National
Fax: 91-22 - 40959596/97, Website: www.stfc.in
Trusts 417582 0.18
Clearing Members 920168 0.40 Corporate Identification No. (CIN): L65191TN1979PLC007874
Limited Liability 105313 0.05 Email ID for Investor grievance:

partnership The following email ID has been designated for commu-
grand Total 226882736 100.00 nicating investors’ grievances. [email protected]
m. Dematerialization of shares and liquidity p. Locations

List of branches are mentioned in the “Our Reach”
The Company’s scrip forms part of the compulsory
Section of the Annual Report.
Demat segment for all investors effective from July 24,
2000. To facilitate the investors in having an easy access
For details pursuant to Clause 49 IV (G) (I) of the Listing
to the demat system, the Company has signed up with
Agreeent in respect of Directors Seeking appointment / re-
both National Securities Depository Limited (NSDL) and
appointment, please refer to the annexure to the notice of 35th
Central Depository Services (India) Limited (CDSL). The
Annual General Meeting already sent to you separately.
connectivity has been established through Integrated

37
REPORT ON

CEo/Cfo CErTIfICaTIon
We, to the best of our knowledge and belief, certify that-
a. We have reviewed financial statements and the cash flow statements for the year ended March 31,2014 and that to the best
of our knowledge and belief;
i. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might
be misleading.
ii. These statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting
standards, applicable laws and regulations.
b. There are to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s code of conduct.
c. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed to the
Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps we have taken or propose to take to rectify these deficiencies.
d. We have disclosed, based on our evaluation wherever applicable to the Auditors and the Audit Committee that;
i. There were no material deficiencies in internal controls over financial reporting during the year;
ii. All the significant changes in accounting policies during the year, if any, have been disclosed in the notes to the financial
statement; and
iii. There were no instances of significant fraud of which we are become aware and the involvement therein, of the management
or an employee having a significant role in the Company’s internal control system over financial reporting.
uMESh rEvanKar
Managing Director
Parag SharMa
Mumbai Executive Director & CFO
April 29, 2014
DECLaraTIon rEgarDIng CoMPLIanCE By BoarD MEMBErS anD SEnIor ManagEMEnT PErSonnEL wITh
ThE CoMPany’S CoDE of ConDuCT
The Board of Directors of Shriram Transport Finance Company Limited at its Meeting held on January 29, 2005 adopted Code
of Conduct as amended on October 27, 2010 to be followed by all Members of the Board and Senior Management Personnel of
the Company respectively in compliance with the revised Clause 49 of the Listing Agreement with the Stock Exchanges where
the shares of the Company are listed.
As provided under Clause 49 of the Listing Agreement executed with the Stock Exchanges, all Board Members and Senior
Management Personnel have affirmed Compliance with the Code of Conduct for the year ended March 31, 2014.
uMESh rEvanKar
Managing Director
Mumbai
April 29, 2014

AuDITORS’
CERTIFICATE
CErTIfICaTE on CorPoraTE govErnanCE
To
The Members of Shriram Transport Finance Company Limited,
We S.R.Batliboi & Co. LLP (“SRB”) and G.D.Apte & Co. (“GDA”) have jointly examined the compliance of
conditions of Corporate Governance by Shriram Transport Finance Company Limited (‘the Company’), for
the year ended on March 31, 2014, as stipulated in Clause 49 of the Listing Agreement of the said Company
with stock exchange(s).
The Compliance of conditions of Corporate Governance is the responsibility of the management. Our
examination was limited to procedures and implementation thereof, adopted by the Company for ensuring
the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion
on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify
that the Company has complied with the conditions of Corporate Governance as stipulated in the above
mentioned Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor
the efficiency or effectiveness with which the management has conducted the affairs of the Company.
For S.R. Batliboi & Co. LLP For G. D. Apte & Co.
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: 301003E ICAI Firm Registration Number: 100515W
per Viren H. Mehta Ameya D. Tambekar

Partner Partner
Membership Number: 048749 Membership Number: 128355
Place of Signature: Mumbai

Date: April 29, 2014

39
CONTENTS
BuSINESS RESPONSIBIlITY REPORT 2013-14
SECTION A
gENERAl INFORMATION ABOuT ThE COMPANY 41
SECTION B
FINANCIAl DETAIlS OF ThE COMPANY 41
SECTION C
OThER DETAIlS 42
SECTION D
BuSINESS RESPONSIBIlITY INFORMATION 42
SECTION E
EThICS OF ThE COMPANY 44
CONTRIBuTION TO SuSTAINABIlITY 45
EMPlOYEES WEll-BEINg 45
STAkEhOlDERS ENgAgEMENT 46
huMAN RIghTS 47
ENVIRONMENT 48
INFluENCINg PuBlIC & REgulATORY POlICIES 48
INCluSIVE gROWTh 48
VAluE OF CuSTOMERS 49
BuSINESS RESPONSIBIlTY PARAMETER INDEX 50

BuSINESS RESPONSIBIlITY
REPORT 2013-14
SECTION A
gEnEraL InforMaTIon
1. Corporate Identification Number: L65191TN1979PLC007874
2. Name of the Company : Shriram Transport Finance Company Limited (“the Company”)
3. Registered Office: Mookambika Complex, 3rd Floor, No. 4, Lady Desika Road, Mylapore, Chennai, Tamil Nadu – 600004.
Tel No: +91 44 2499 0356 Fax: +91 44 2499 3272
4. Website: www.stfc.in
5. Email-id: [email protected]
6. Financial Year reported: 2013-14
7. Sector(s) that the Company is engaged in (industrial activity code-wise) :Our Company holds a certificate of registration
dated September 4, 2000 bearing registration no. A-07-00459 issued by the Reserve Bank of India to carry on the activities
of a Non-Banking Financial Company in the category of asset financing company under section 45 IA of the RBI Act, 1934,
which has been renewed on April 17, 2007, (bearing registration no. 07-00459).
8. List three key products/services that the Company manufactures/provides (as in balance sheet) :Our Company was
established in 1979 and we have a long track record of over three decades in the commercial vehicle financing in dustry in
India. We are the largest Indian asset financing Non-Banking Finance Company (NBFC), with a primary focus on financing pre-
owned commercial vehicles.
9. Total number of locations where business activity is undertaken by the Company
i. Number of International Locations - Nil
ii. Number of National Locations - 654 Branches
10. Markets served by the Company): The Company is a leader in organized financing of pre-owned trucks with presence across
India.
SECTION B
fInanCIaL DETaILS of ThE CoMPany
(Rs. In lakhs)
Sr. No Particulars amount
1. Paid up Capital 22,690.67

2. Total Turnover 788,825.91
3. Total profit after taxes 126,420.77
4. Total spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%) 0.48%
5. List of Activities in which expenditure in above point 4 has been incurred :
1. Providing Education to the backward/weaker section of the society and enhancing literacy
2. Empowerment of common man (“AamAadmi”) and women
3. Providing Vocational training for income generation and enhancing employability of marginalized /unprivileged
people of the society
4. Undertaking projects for protection of environment.
5. Nutrition, Health care and sanitation programs

41
REPORT 2013-14 (Contd.)
SECTION C
oThEr DETaILS
our following subsidiaries have participated in the Business responsibility(Br) initiatives of STfC:
1. Shriram Equipment Finance Company Limited, (“SEFCL”):
SEFCL was incorporated pursuant to a certificate of incorporation dated December 15, 2009 issued by the Registrar of
Companies, Chennai, Tamil Nadu, and having its registered office situated at Mookambika Complex, 3rd Floor, No. 4, Lady
Desika Road, Mylapore, Chennai, Tamil Nadu, India - 600004. SEFCL is engaged in the business of providing equipment
finance in connection with both new and pre-owned construction and other equipment. SEFCL has received a certificate of
registration dated October 8, 2010, to carry on the business of a NBFC (without accepting public deposits) from the Reserve
Bank of India.
2. Shriram Automall India Limited, (“SAIL”):
SAIL was incorporated pursuant to a certificate of incorporation dated February 11, 2010 issued by the Registrar of
Companies, Chennai, Tamil Nadu and having its registered office situated at Mookambika Complex, 3rd Floor, No. 4, Lady
Desika Road, Mylapore, Chennai, Tamil Nadu, India – 600004. SAIL is engaged in for providing facilitation services to the
sellers and buyers who wish to dispose of / buy pre-owned commercial vehicles, equipment and assets at hubs called
“Automall” developed by SAIL.
SECTION D
BuSInESS rESPonSIBILITy InforMaTIon
1. Details of Director/Directors responsible for Br

a. Details of the Director/Directors responsible for implementation of the Br policy/policies
Sr.No name Designation DIn number
1. Mr. Umesh Revankar Managing Director 00141189
b. Details of the Br head
Sr.No Particulars Details
1 DIN Number (if applicable) Not Applicable

2 Name Mr. Vinay Kelkar
3 Designation Deputy Managing Director
4 Telephone number 91-022-4095 9595
5 e-mail id [email protected]

SECTION D (Contd.)
2. Principle-wise (as per nvgs) Br Policy/policies (reply in y/n)
Sr.No questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1 Do you have a policy/policies for. Y Y Y Y Y Y Y Y Y

2 Has the policy being formulated Y N Y N N Y N N N
in consultation with the relevant
stakeholders?
3 Does the policy conform to any national Y Y Y Y Y Y Y Y Y
/international standards? If yes, specify?
(50 words)
4 Has the policy being approved by the Y Y Y Y Y Y Y Y Y
Board? Is yes, has it been signed by
MD/owner/CEO/appropriate Board
Director?
5 Does the company have a specified Y Y Y Y Y Y Y Y Y
committee of the Board/ Director/Official
to oversee the implementation of the
policy?
6 Indicate the link for the policy to be # # # # # # # # #
viewed online?
7 Has the policy been formally Y Y Y Y Y Y Y Y Y
communicated to all relevant internal
and external stakeholders?
8 Does the company have in-house Y Y Y Y Y Y Y Y Y
structure to implement the policy/
policies.
9 Does the Company have a grievance Y Y Y Y Y Y N Y Y
redressal mechanism related to the
policy/policies to address stakeholders’
grievances related to the policy/
policies?
10 Has the company carried out N N N N N N N N N
independent audit/evaluation of the
working of this policy by an internal or
external agency?
# The Link of the Policy is http://stfc.in/pdf/Business-Responsibility-Policy.pdf

43
SECTION D (Contd.)
a. If answer to S.No. 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
Sr.No questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1 The company has not understood --- --- --- --- --- --- --- --- ---
the Principles
2 The company is not at a stage --- --- --- --- --- --- --- --- ---
where it finds itself in a position to
formulate and implement the policies
on specified principles
3 The company does not have --- --- --- --- --- --- --- --- ---
financial or manpower resources
available for the task
4 It is planned to be done within next --- --- --- --- --- --- --- --- ---
6 months
5 It is planned to be done within the --- --- --- --- --- --- --- --- ---
next 1 year
6 Any other reason (please specify) --- --- --- --- --- --- --- --- ---
governance related to Br
• The BR performance was reviewed two times by the Business Responsibility Committee.
• The Company will publish the Business Responsibility (BR) Report annually as per the requirements of the Listing
Agreement entered into with Stock Exchanges.The hyperlink for viewing this is http://stfc.in/pdf/Business-
Responsibility-Policy.pdf
SECTION E
PrInCIPLE-wISE PErforManCE
EThICS of ThE CoMPany
PrInCIPLE 1: Business should conduct and govern themselves with Ethics, Transparency and accountability:
We have developed good governance structure for our organization and formulated procedures and practices that ensure
ethical conduct at all levels of the organization. We continuously review and upgrade the procedures and practices. We maintain
transparency in our communication with our shareholders.
(i) Code of Conduct for Directors, Senior Management Personnel and employees
The compliance with the code of conduct is regularly reported and monitored.
(ii) Strong Corporate governance
The Company’s philosophy on Corporate Governance, inter alia, is aimed at enhancing long term shareholder value,
achieving transparency and professionalism in all decisions and activities of the Company and achieving excellence in
corporate governance.

SECTION E (Contd.)
We have deployed the practice of separating the roles of the Chairman of the Board and the CEO to ensure the right focus to
governance. The Board is headed by a non-executive Chairman. The day to day management of the affairs of the Company
is entrusted with the senior management personnel, headed by the Managing Director, who functions under the overall
supervision, direction and control of the Board of directors of our Company.
We have a distinct advantage that most of our senior management team have been with us for more than fifteen years
and have grown with the Company. Over the years they have mastered the techniques in all fields of business operations,
investor and customer relations.We have launched innovative financial products and fund raising methods. We take care
of all our stakeholders. This has resulted in our enjoying the faith and confidence of our investors, customers and other
stakeholders and building long term relationships, reputation and goodwill of the Company.
Apart from compliance with mandatory requirements of clause 49 of the Listing Agreement with stock exchanges relating to
corporate governance, we have also complied with non-mandatory requirement by setting up a Remuneration, Compensation
and Nomination Committee of three independent directors. Our independent directors have the r equisite qualification
and experience which enables them to contribute effectively in their capacity of independent director. The Remuneration
Compensation and Nomination committee has framed policy for remuneration of executive director. The Chairman of the
Remuneration, Compensation and Nomination Committee attended the last annual general meeting. We have Whistle blower
policy in place.
We do not engage in any practice that isabusive, corrupt or anti-competition. We have avoided complicity with actions of third
party that violates Business Responsibility Principles.
ConTrIBuTIon To SuSTaInaBILITy
PrInCIPLE 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout
their life cycle
The Company is engaged in the business of financing of commercial vehicles. Our customers are primarily Small Road Transport
Operators (SRTOs) generally belonging to the weaker sections of the society. Our services help generating opportunities of
self-employment and self-respect to SRTOs who are often denied financial support by organized lending institutions and who
otherwise would be subjected to exploitation from unorganized money lenders. In the process of financing of pre-owned vehicles,
we check authorization /certificates for safety,fitness and emission of the vehicle.Our various initiatives are aimed at influencing
our customers for creating awareness about environment protection, reducing impact of emissions from on-road vehicles on the
environment. We make appeal to our customers for timely maintenance of the vehicles. We give loans to them for replacement
of tyres and engine parts.
We provide financial support to driver’s training school run in collaboration with an NGO . The driving school imparts traini ng for
safe driving of heavy commercial vehicles to youths from rural areas.
EMPLoyEES wELL-BEIng
PrInCIPLE 3 : Business should promote wellbeing of employees
We have large employee base. We believe that our employees are our most valuable asset and greatest strength. We provide
equal opportunity to all employees starting from their recruitment irrespective of their caste, creed, gender, race, religion,
language,disability or sexual orientation. Our employees belong to all parts of the country and are selected based on individual
merit without any discrimination or preference.We continue to encourage the capable female employees reaching senior positions
and participating in the organization’s decision making process.
We are one of the first NBFCs launching Employees Stock Options (ESOP) Scheme in the year 2005 and many employees upto
the branch manager level were benefitted. We have launched scheme to address health and welfare needs of our employees
and their families. We have tied up with Thyrocare for conducting various medical check-up of employees and members of their
families at subsidized rate. Large number of employees and their families availed benefits of the scheme.

45
SECTION E (Contd.)
We have schemes to reward best performers by payment of incentives. The permanent employees are entitled to retirement
benefits such as provident fund, gratuity. We also provide for medical reimbursement, hospitalization, personal accident insurance
benefits to permanent employees.
We foster a culture that welcomes ideas and feedback, and encourages open communication we periodically review and upgrade
our employee welfare policies taking into account such feedback.
The Management Education Scheme has been designed to Excel the Employees in the area of Management. It delivers the
rapid uplift of managerial skills, through exposure to the full range of subject areas. The program is specially designed for the
Employees of Shriram to strengthen the area of their current specialization along with a comprehensive view of other functions of
management. The program contents will help individuals to develop a strong understanding of Management Concepts for practical
applications.
The program provides managerial concepts which are directly related to functioning within an organization, thus enhancing requisite
competencies to be an effective manager. The program aims to develop the Employees in a general manager’s perspective, and
inculcate the habit of exploring and reflecting on applying learning in the context of work. 199 employees were participat ed for
Management Education Scheme for the financial year ended 2013-14.
We continued to arrangement of cricket tournament at Navi Mumbai for employees and rewarded the best performers.
In order to ensure healthy working conditions, to prevent sexual harassment of women employees, we have constituted Internal
Complaint Redressal Committee at various workplaces.
Status of Complaints - Sexual Harassment of Women during the financial year 2013-14
Sr. No Particulars no of Cases

1 No. of complaints of Sexual Harassment received in the year Nil
2 No. of complaints disposed off during the year NA
3 Number of cases pending for more than 90 days Nil
4 No. of workshops or awareness program against Sexual Harassment carried out 2
5 nature of action taken by the employer as above
STaKEhoLDErS EngagEMEnT
PrInCIPLE 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially
those who are disadvantaged, vulnerable and marginalized
Our stakeholders broadly consist of our customers, investors, market intermediaries, lenders, employees, society etc. Our
customers are primarily Small Road Transport Operators(SRTO) and First Time Users (FTUs).Our Investors comprise of
shareholders (including Institutional Investors) and Debenture holders. Our lenders comprise of banks, financial institutions, Fixed
Deposit holders.
As an asset finance company, our liquidity and ongoing profitability are, in large part, dependent upon our timely raising of capital
and the costs associated therewith. Our funding requirements historically have been met from a combination of term loans from
banks and financial institutions, issuance of Redeemable Non-Convertible Debentures, public deposits, the issue of commercial
paper, as well as through securitization and assignment of our loan portfolio. Our business depends and will continue to depend
on our ability to access diversified funding sources.
We have a track record of getting overwhelming response from investors to our past six Public Issue of Redeemable Non-
Convertible Debentures. The Base issues were over-subscribed in a short span despite tough macro-economic and market
conditions, reflecting the investors’ confidence .
Our operational efficiency, integrity and a strong focus on catering to the needs of ‘Aam Aadmi’(common man) are the values

SECTION E (Contd.)
driving the Company. These values are deep-rooted within the organization and have been strongly adhered to over the decades.
It is this guiding philosophy of putting ‘AamAadmi’ first that has brought us closer to the grassroots, and made it the preferred
choice for all the truck financing requirements amongst customers.
1. Our Customers
Our primary business involves lending money for purchase of commercial vehicles in India.Our customer portfolio principally
consists of Small Road Transport Operators(SRTO) and First Time Users (FTUs).A significant majority of our customer base
belongs to the low income group often not having any credit history supported by documents on which many of organized
financial institutions rely. However, through our credit evaluation techniques, internally-developed valuation methodology
which requires deep knowledge and practical experience developed over a period of time, relationship based approach and
extensive branch network we have made our business model unique and sustainable.
We have in place Fair Practice Code for dealing with our customers. Our policy is to treat all customers in fair manner, our
employees are trained to provide, assist, encourage, fair and equitable services to the customers.
Our entire recovery and collection operation is administered in-house and we do not outsource loan recovery and collection
operations. We have relationship based recovery procedures well-suited to our target market in the commercial vehicle
financing industry. We have high loan recovery ratios compared to others in the financial services industry.
2. Our Investors
Our philosophy is to enhance long term shareholders value. We have track record of payment of Interim and Final dividend
for past several years consistently.
Our good track record has enabled us to obtain high credit ratings from the reputed Credit Rating Institutions. This enables
smooth raising of funds from investors. We offer variety of options to our investors to subscribe various series of redeemable
non-convertible debentures, secured and unsecured, of different maturities and interest pay-out dates providing good return
and safety. We make timely payment of interest and repayment of debt instrument on their maturity.
We have appointed a senior executive at Vice President’s level to focus on our Institutional investors. We regularly hold
Investors meets and give presentation on financial results of the Company after same are made public.The Foreign Institutional
Investors hold about 49% of our equity share capital.
3. Our Deposit holders and lenders
We continued to service our Fixed Deposit holders on time and offer good rate of returns. We are regular in payment of
interest and repayment of credit facilities availed from Banks and Financial Institutions. In view of our good track record
of timely payment of interest and repayment of loans, we enjoy good reputation, goodwill and standing in the financial
markets.
4. Our Society
We discharge of Corporate Social Responsibility by undertaking projects of social welfare directly as well as through Shriram
Foundation. The details of various projects run in this direction are contained in the note for Principle 8 of our Business
Responsibility Report.
huMan rIghTS
PrInCIPLE 5: Businesses should respect and promote human rights
As a good corporate citizen we respect the human rights of those who we engage with. We pay fair wages to our employees and
do not discriminate between male and female employees. They are treated equally with dignity and are given equal opportunities,
rights and benefits. We comply and adhere to all the human rights laws and guidelines of the Constitution of India, national laws.
We strive to percolate these values at all levels in the organization.

47
SECTION E (Contd.)
EnvIronMEnT
PrInCIPLE 6 : Business should respect, protect and make efforts to restore the environment
We have Environment Policy in place. We commit to be an environmentally responsible and progressive company. We shall do
this by –
1. Complying with applicable environmental regulations and other requirements.
2. Proactively addressing environmental impacts, direct and indirect.
3. Pursuing continual improvement of environmental performance.
4. Conserving natural resources and ensuring safe disposal of waste.
5. Creating awareness about environment protection and management and actively influencing our employees, customers,
contractors, suppliers and communities to make a positive difference.
We are continuously making appeal to our shareholders to participate in the ‘Green initiative’ to reduce use of paper by converting
their holding of physical shares into electronic shareholding by dematerialization, receiving soft copies of annual reports using
internet facilities, receiving dividend by direct credit to their bank accounts instead of physical dividend warrants etc.
As a part of Green initiative for paperless office, we use electronic methods of communication within and outside our offices and
avoid use of paper as far as possible.
For paymentof Interest, dividend, maturity amount of debentures and fixed deposits etc. as far as possible we use methods
of electronic remittances such as NECS, NEFT, RTGS which also ensures faster credit of money to the bank accounts of the
investors, avoids use of paper for dividend warrants, interest warrants, cheques.
Our objective is to achieve highest level of paperless office by adopting practices, methods and modern techniques in our internal
and external communication with all stakeholders.
We continued our efforts for conservation of water, electricity at our various offices, branches and workplaces.
InfLuEnCIng PuBLIC & rEguLaTory PoLICIES
PrInCIPLE 7 : Business, when engaged in influencing public and regulatory policy, should do so in a responsible
manner.
We are one of the oldest and the largest Indian asset financing Non-Banking Financial Company (NBFC) with a primary focus
on financing pre-owned commercial vehicles. We take up the issues and matters impacting our business segment and give our
suggestions in respect of the proposals of the regulatory and government bodies directlyas well as through chambers of commerce
in the best interest of the commercial vehicle financing segment of the Industry, Small Road Transport Operators.
We hold memberships of several industry associations such as Finance Industry Development Council (FIDC), Confederation of
Indian Industries(CII) and Federation of Indian Chambers of Commerce and Industry (FICCI).
InCLuSIvE growTh
PrInCIPLE 8: Business should support inclusive growth and equitable development
The principle of inclusive growth is imbibed in our business model. A significant majority of our customer base belong to Small
Road Transport Operators (SRTO) and First Time Users (FTUs) who often don’t have any credit history supported by documents
on which many of organized financial institutions rely making it difficult for them to access capital. We provide finance to these pre-
owned commercial vehicle operators at favorable interest rates and repayment terms as compared to private financiers in the
unorganized sector.

SECTION E (Contd.)
We have entered into partnership with an NGO for establishing driver training schools in the state of Jharkhand for youths from
rural area enabling them to find gainful employment. We have plans to start two more such training schools in the backward areas
of our country, subject to receipt of necessary recognition from the state governments of the respective states for grant of driving
license.
We are proud to be a part of ‘Shriram Group’, which has helped enrich the quality of life of “the common man”. Shriram Foundation
was established in 1993 as the charitable arm of The Shriram Group to work for the financially under privileged sections. As a part
of our Corporate Social Responsibility (CSR), we provide financial support to various projects and activities for welfare of society
directly as well as those undertaken by Shriram Foundation as under:
LCV Driving School- ‘Gurukul’ in Jharkhand
The driving school located at Serai-Kela district of Jharkhand is being set up in collaboration with Government of Jharkhand. TATA
407 simulator specially customized for the school has been purchased.
We also provide financial support to various CSR projects undertaken by Shriram Foundation independently or in partnerships
with NGOs in the following fields:
Education
Being aware of the fact that education is the key to the prosperity of any nation, Shriram Foundation runs schools in rural and
semi-rural areas of Tamil Nadu and Andhra Pradesh. These schools serve children from under privileged families living in remote
areas.
‘Micro school’is another program to teach children aged between 3 and 6 years. These schools provide pre-school education
to children based on Montessori methodology. Like other schools run by Shriram Foundation, micro schools are located in rural
areas where residents do not have access to good schools.
Higher education through community college is another significant program of Shriram Foundation. Shriram -IGNOU Community
Colleges are being run in Thiruneermalai and Anaikoil regions of Tamil Nadu to offer Certificate, Diploma and Associate Degree
program in job-oriented skill based courses.
Empowerment
‘Shriram Children’s Home’has been run by Shriram Foundation for the past 20 years. The Shriram Children’s Home is recognized
under the Orphanages and Charitable Homes Act, 1960 and has been awarded ‘FIT INSTITUTION’ certification by the Child
Welfare Committee of Chennai District. The children at the home are well nurtured and cared for to ensure a normal childhood.
The plan for this unit is to function as a hostel for older girls continuing education, as we have successfully rehabilitated all the
small children with assistance and extended family care.
‘Shriram Vocational training center’instructs rural women on skill areas such as tailoring, embroidery, pickle making, handicrafts
etc. Primary focus of this initiative is women empowerment as these courses help women find em ployment with companies
or setup their own small enterprises. The center takes on projects under the Women Welfare and Development scheme from
the Government of Tamil Nadu. The center has trained over 500 women over the last 2 years. The center has brought in 26
professional machines to train more women and students on tailoring and other textile related areas.
vaLuE of CuSToMErS
PrInCIPLE 9 : Business should engage with and provide value to their customers and consumers in a responsible
manner
We are happy to report that many of our customers, who initially belong to l ow income group, and approached us for financing a

49
SECTION E (Contd.)
tempo have made progress and advancement to now become owners of truck. The owners of truck have advanced to become
owner of multiple commercial vehicles.
Apart from providing loans, we help our customers with the following:
• Settlement of Insurance claims
• Renewal of insurance policy
• Obtaining of permits from RTOs
• Tie-up with Axis Bank to provide co-branded credit cards
• Tie-up with service centers for refurbishing vehicles
We regularly review our procedures, practices and methods of communication with our customers to ensur e that they are
simple and customer friendly. Towards this end we have focused on upgrading our methods of communication. We are now
communicating with customers through mobiles to inform them about sanction of loans, receipt of EMI, outstanding EMI, loan
balance confirmations etc making information more easily accessible.We believe customer satisfaction is the key to our growth
and success in the long term.
BuSInESS rESPonSIBILITy ParaMETEr InDEX

Principle-wise performance
Sr.No questions whether Complied?

Principle 1
1. Does the policy relating to ethics, bribery and Yes, It extends only to the subsidiary Companies.
corruption cover only the company? Yes/ No. Does The policy has been posted on the website of the
it extend to the Group/Joint Ventures/ Suppliers/ Company
Contractors/NGOs /Others?
2. How many stakeholder complaints have been received No complaints were received regarding ethical and
in the past financial year and what percentage was other matters contained in this principle
satisfactorily resolved by the management? If so,
provide details thereof, in about 50 words or so.
Principle 2
1. List up to 3 of your products or services whose design The Company is not engaged in manufacture of any
has incorporated social or environmental concerns, goods. It is engaged in the business of financing
risks and/or opportunities. of commercial vehicles, primarily to Small Road
Transport Operators (SRTOs).
2. For each such product, provide the following details in Not Applicable
respect of resource use (energy, water, raw material
etc.) per unit of product(optional):
i. Reduction during sourcing/production/ distribution
achieved since the previous year throughout the
value chain?
ii. Reduction during usage by consumers (energy,
water) has been achieved since the previous
year?

SECTION E (Contd.)
BuSInESS rESPonSIBILITy ParaMETEr InDEX (Contd.)
3. Does the company have procedures in place for Not Applicable
sustainable sourcing (including transportation)?
i. If yes, what percentage of your inputs was sourced
sustainably? Also, provide details thereof, in about
50 words or so.
4. Has the company taken any steps to procure goods The Company provides services relating to vehicle
and services from local & small producers, including financing through its branches. As a matter of
communities surrounding their place of work? practice, we give preference for recruitment of local
If yes, what steps have been taken to improve their people in our branches
capacity and capability of local and small vendors?
5. Does the company have a mechanism to recycle Not Applicable
products and waste? If yes what is the percentage of
recycling of products and waste (separately as <5%,
5-10%, >10%). Also, provide details thereof, in about
50 words or so
Principle 3
1. Please indicate the Total number of employees. 18,122

2. Please indicate the Total number of employees hired on NIL
temporary/contractual/casual basis.
3. Please indicate the Number of permanent women 1004
employees.
4. Please indicate the Number of permanent employees 32
with disabilities
5. Do you have an employee association that is recognized No
by management
6. What percentage of your permanent employees is Not Applicable
members of this recognized employee association?
7. Please indicate the Number of complaints relating to NIL
child labour, forced labour, involuntary labour, sexual
harassment in the last financial year and pending, as on
the end of the financial year.
Child labour/forced labour/involuntary labour
Sexual harassment
Discriminatory employment
8. What percentage of your under mentioned employees Yes, 60% of employees were given safety &
were given safety & skill up-gradation training in the last skill training programmes in the last year.
year?
• Permanent Employees
• Permanent Women Employees
• Casual/Temporary/Contractual Employees
• Employees with Disabilities

51
SECTION E (Contd.)

Principle 4
1. Has the company mapped its internal and external Yes

stakeholders? Yes/No
2. Out of the above, has the company identified the Yes
disadvantaged, vulnerable & marginalized stakeholders
3. Are there any special initiatives taken by the company Yes, Please refer to the Principle 4 of the Report
to engage with the disadvantaged, vulnerable and
marginalized stakeholders. If so, provide details thereof,
in about 50 words or so.
Principle 5
1. Does the policy of the company on human rights Yes, The policy also extends to our subsidiaries.
cover only the company or extend to the Group/Joint
Ventures/Suppliers/Contractors/NGOs/Others?
2. How many stakeholder complaints have been received No complaints were received for human rights
in the past financial year and what percent was violation during the reporting period
satisfactorily resolved by the management?
Principle 6
1. Does the policy related to Principle 6 cover only the The policy extends to Company as well as subsidiaries
company or extends to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/others.
2. Does the company have strategies/ initiatives to address Yes, We have Environment policy in place. We have
global environmental issues such as climate change, taken the green initiative through paperless office, water
global warming, etc? Y/N. If yes, please give hyperlink conservation etc.
for webpage etc.
3. Does the company identify and assess potential No
environmental risks? Y/N
4. Does the company have any project related to Clean No
Development Mechanism? If so, provide details thereof,
in about 50 words or so. Also, if Yes, whether any
environmental compliance report is filed?
5. Has the company undertaken any other initiatives on – No
clean technology, energy efficiency, renewable energy,
etc. Y/N. If yes, please give hyperlink for web page etc

SECTION E (Contd.)
6. Are the Emissions/Waste generated by the company We are not engaged in manufacture of any goods.We
within the permissible limits given by CPCB/SPCB for are engaged in the business of financing of commercial
the financial year being reported? vehicles, primarily to Small Road Transport Operators
(SRTOs).
7. Number of show cause/ legal notices received from Nil
CPCB/SPCB which are pending (i.e. not resolved to
satisfaction) as on end of Financial Year.
Principle 7
1. Is your company a member of any trade and chamber Yes. We are member ofFinance Industry Development
or association? If Yes, Name only those major ones that Council (FIDC), Confederation of Indian Industries
your business deals with: (CII) and Federation of Indian Chambers of Commerce
and Industry (FICCI)and various other state/city level
associations.
2. Have you advocated/lobbied through above associations Yes
for the advancement or improvement of public good? Governance & Administration
Yes/No; if yes specify the broad areas ( drop box:
Governance and Administration, Economic Reforms,
Inclusive Development Policies, Energy security, Water,
Food Security, Sustainable Business Principles, Others)
Principle 8
1. Does the company have specified programmes/ Yes, Please refer to the Principle 8 of the Report
initiatives/projects in pursuit of the policy related to
Principle 8? If yes details thereof.
2. Are the programmes/projects undertaken through in- Yes, the projects are undertaken though coordination
house team/own foundation/external NGO/government and collaboration between in-house team, Shriram
structures/any other organization? Foundation & NGOs.
3. Have you done any impact assessment of your No
initiative?
4. What is your company’s direct contribution to community Yes, Please refer to the Section B of the Report
development projects- Amount in INR and the details of
the projects undertaken.
5. Have you taken steps to ensure that this community Yes, We actively encourage participation of
development initiative is successfully adopted by the stakeholders in various programs. This includes both
community? Please explain in 50 words, or so volunteering and proactive participation.

53
SECTION E (Contd.)
Principle 9
1. What percentage of customer complaints/consumer No complaints are pending as on the end of financial
cases are pending as on the end of financial year. year.
Does the company display product information on Not Applicable
the product label, over and above what is mandated
as per local laws? Yes/No/N.A. /Remarks(additional
information)
2. Is there any case filed by any stakeholder against the No
company regarding unfair trade practices, irresponsible
advertising and/or anti-competitive behaviour during the
last five years and pending as on end of financial year. If
so, provide details thereof, in about 50 words or so.
3. Did your company carry out any consumer survey/ No
consumer satisfaction trends?

FINANCIAl SECTIONS
Contents
Standalone Financial Section
indePendent aUditoR’S RePoRt 57
Balance Sheet 60
Statement oF PRoFit & loSS 61
caSh Flow Statement 62
noteS 64
Shriram Transport Finance Company Limited

indePendent aUditoR’S RePoRt
To, opinion
The Members of In our opinion and to the best of our information and according
Shriram TranSporT FinanCe Company LimiTed to the explanations given to us, the financial statements give
the information required by the Companies Act, 1956 (“the
report on the Financial Statements
Act”) in the manner so required and give a true and fair view in
We have audited the accompanying financial statements conformity with the accounting principles generally accepted
of Shriram Transport Finance Company Limited (“the in India.
Company”), which comprise the Balance Sheet as at March
(a) in the case of the Balance Sheet, of the state of affairs
31, 2014, and the Statement of Profit and Loss and Cash
of the Company as at March 31, 2014;
Flow Statement for the year then ended, and a summary
(b) in the case of the Statement of Profit and Loss, of the
of significant accounting policies and other explanatory
profit for the year ended on that date; and
information.
(c) in the case of the Cash Flow Statement, of the cash
management’s responsibility for the Financial
flows for the year ended on that date.
Statements
report on other Legal and regulatory requirements
Management is responsible for the preparation of these
1. As required by the Companies (Auditor’s Report) Order,
financial statements that give a true and fair view of the
2003 (“the Order”) issued by the Central Government of
financial position, financial performance and cash flows
India in terms of sub-section (4A) of section 227 of the
of the Company in accordance with accounting principles
Act, we give in the Annexure a statement on the matters
generally accepted in India, including the Accounting
specified in paragraphs 4 and 5 of the Order.
Standards notified under the Companies Act, 1956, read with
General Circular 8/2014 dated 4 April 2014 issued by the 2. As required by section 227(3) of the Act, we report that:
Ministry of Corporate Affairs. This responsibility includes the (a) We have obtained all the information and
design, implementation and maintenance of internal control explanations which to the best of our knowledge
relevant to the preparation and presentation of the financial and belief were necessary for the purpose of our
statements that give a true and fair view and are free from audit;
material misstatement, whether due to fraud or error. (b) In our opinion proper books of account as required
auditor’s responsibility by law have been kept by the Company so far as
Our responsibility is to express an opinion on these financial appears from our examination of those books;
statements based on our audit. We conducted our audit in (c) The Balance Sheet, Statement of Profit and Loss,
accordance with the Standards on Auditing issued by the and Cash Flow Statement dealt with by this Report
Institute of Chartered Accountants of India. Those Standards are in agreement with the books of account;
require that we comply with ethical requirements and plan (d) In our opinion, the Balance Sheet, the Statement
and perform the audit to obtain reasonable assurance about of Profit and Loss, and the Cash Flow Statement
whether the financial statements are free from material comply with the Accounting Standards notified
misstatement. under the Companies Act, 1956 read with General
An audit involves performing procedures to obtain audit Circular 8/2014 dated 4 April 2014 issued by the
evidence about the amounts and disclosures in the financial Ministry of Corporate Affairs;
statements. The procedures selected depend on the On the basis of written representations received from the
auditor’s judgment, including the assessment of the risks of directors as on March 31, 2014, and taken on record by the
material misstatement of the financial statements, whether Board of Directors, none of the directors is disqualified as
due to fraud or error. In making those risk assessments, the on March 31, 2014, from being appointed as a director in
auditor considers internal control relevant to the Company’s terms of clause (g) of sub-section (1) of section 274 of the
preparation and fair presentation of the financial statements Companies Act, 1956.
in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing For S.r. Batliboi & Co. LLp For G. d. apte & Co.
an opinion on the effectiveness of the Company’s internal Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: 301003E ICAI Firm Registration Number: 100515W
control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the per Viren h. mehta amey d. Tambekar
Partner Partner
accounting estimates made by management, as well as Membership Number: 048749 Membership Number: 128355
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is Place: Mumbai Place: Mumbai
Date: April 29, 2014 Date: April 29, 2014
sufficient and appropriate to provide a basis for our audit
opinion.
STandaLone aCCounTS Annual Report 2013-14

57
annexURe
ReFeRRed to in PaRagRaPh 3 oF oUR RePoRt oF even date
re: Shriram TranSporT FinanCe Company particulars of contracts or arrangements referred to in

LimiTed (‘The Company’) section 301 of the Act that need to be entered into the
(i) (a) The Company has maintained proper records showing register maintained under section 301 have been so
full particulars including quantitative details and entered.
situation of fixed assets.
(b) In our opinion and according to the information and
(b) Fixed assets have been physically verified by explanations given to us, the transactions made
the management during the year and no material in pursuance of such contracts or arrangements
discrepancies were identified on such verification. exceeding value of Rupees five lakhs have been
(c) There was no disposal of a substantial part of fixed entered into during the financial year at prices which
assets during the year. are reasonable having regard to the prevailing market
(ii) The Company’s business does not involve inventories and, price at the relevant time.
accordingly, the requirements under paragraph 4(ii) of the (vi) In respect of deposits accepted, in our opinion and according
Order are not applicable to the Company. to the information and explanations given to us, directives
(iii) (a) The Company has granted loan to one party covered issued by the Reserve Bank of India and the provisions
in the register maintained under section 301 of the of sections 58A, 58AA or any other relevant provisions
Companies Act, 1956. The maximum amount involved of the Act and the rules framed there under, to the extent
during the year was Rs. 299.97 lacs and the year- end applicable, have been complied with. We are informed by
balance of loans granted to such parties was Rs. Nil. the management that no order has been passed by the
Company Law Board, National Company Law Tribunal or
(b) In our opinion and according to the information and
Reserve Bank of India or any Court or any other Tribunal.
explanations given to us, the rate of interest and other
terms and conditions for such loans are not prima (vii) In our opinion, the Company has an internal audit system
facie prejudicial to the interest of the Company. commensurate with the size and nature of its business.
(c) In respect of loans granted, repayment of the principal (viii) To the best of our knowledge and as explained, the Company
amount is as stipulated and payment of interest have is not in the business of sale of any goods. Therefore, in our
been regular. opinion, the provisions of clause 4(viii) of the Order are not
applicable to the Company.
(d) There is no overdue amount of loans granted to
companies, firms or other parties listed in the register (ix) (a) The Company is regular in depositing with appropriate
maintained under section 301 of the Companies Act, authorities undisputed statutory dues including
1956. provident fund, employees’ state insurance, investor
education and protection fund, income-tax, wealth
(e) According to information and explanations given to
tax, service tax, cess and other material statutory
us, the Company has not taken any loans, secured
dues applicable to it. The provisions relating to sales-
or unsecured, from companies, firms or other parties
tax,customs duty and excise duty are not applicable to
covered in the register maintained under section 301 of
the Company.
the Companies Act, 1956. Accordingly, the provisions
of clause 4(iii)(e) to (g) of the Order are not applicable (b) According to the information and explanations given
to the Company and hence not commented upon. to us, no undisputed amounts payable in respect of
provident fund, employees’ state insurance, investor
(iv) In our opinion and according to the information and
education and protection fund, income-tax, wealth
explanations given to us, there is an adequate internal
tax, service tax, cess and other material undisputed
control system commensurate with the size of the Company
statutory dues were outstanding, at the year end, for
and the nature of its business, for the purchase of fixed
a period of more than six months from the date they
assets and for rendering of services. The activities of the
became payable. The provisions relating to sales-tax,
Company do not involve purchase of inventory and the customs duty and excise duty are not applicable to the
sale of goods. During the course of our audit, we have Company
not observed any major weakness or continuing failure to
(c) According to the records of the Company, the dues
correct any major weakness in the internal control system
outstanding of income-tax, sales-tax, wealth-tax,
of the Company in respect of these areas. service tax, customs duty, excise duty and cess on
(v) (a) According to the information and explanations provided account of any dispute, are as follows:
by the management, we are of the opinion that the

annexURe
ReFeRRed to in PaRagRaPh 3 oF oUR RePoRt oF even date (contd.)
name of amount years to which the Forum where dispute

the statute nature of dues (rs in lacs) amount relates is pending
Income Tax Act, 1961 Income Tax demands 5,989.41 A.Y. 2011-12 CIT (Appeals)
Finance Act, 1994 Service tax on hire 21,230.18 A.Y. 2003-04 CESTAT (Custom, Excise and
(Service Tax) purchase and lease to 2009-10 Service tax appellate tribunal)
transactions
Finance Act, 1994 Service Tax demands 300* A.Y. 2003-04 & 2004-05 Commissioner of Central Excise
(Service Tax) and Customs
Maharashtra Value Value Added Tax 1,843 A.Y. 2006-07 Maharshtra Sales Tax Tribunal
Added Tax
Andhra Pradesh Value Value Added Tax 348.41* A.Y. 2005-06 to Andhra Pradesh High Court
Added Tax 2008-09
Rajasthan Value Added Value Added Tax 116.37* A.Y. 2006-07 to Deputy Commissioner appeals,
Tax 2012-13 Rajasthan
Orissa Value Added Tax Value Added Tax 9.04* A.Y. 2008-09 Assistant Commissioner of
to 2012-13 commercial tax (Appeals)
*- net of amount paid under protest.
(x) The Company has no accumulated losses at the end of pending utilization of the funds for the intended use.
the financial year and it has not incurred cash losses in
(xvii) According to the information and explanations given to us
the current and immediately preceding financial year.
and on an overall examination of the balance sheet of the
(xi) Based on our audit procedures and as per the information Company, we report that no funds raised on short-term
and explanations given by the management, we are of the basis have been used for long-term investment.
opinion that the Company has not defaulted in repayment
(xviii) The Company has not made any preferential allotment
of dues to a financial institution, bank or debenture of shares to parties or companies covered in the register
holders. maintained under section 301 of the Act.
(xii) Based on our examination of documents and records, (xix) According to the information and explanations given to
we are of the opinion that the Company has maintained us, during the period covered by our audit report, the
adequate records where the Company has granted loans Company has issued 2600, 30,656 and 17,455,801
and advances on the basis of security by way of pledge of secured non convertible debentures of Rs. 30,00,000,
shares, debentures and other securities. Rs.10,00,000 and Rs. 1000 each respectively. The
(xiii) In our opinion, the Company is not a chit fund or a nidhi Company has created security or charge in respect of
/ mutual benefit fund / society. Therefore, the provisions debentures issued.
of clause 4(xiii) of the Order, are not applicable to the (xx) We have verified that the end use of money raised by
Company. public issues is as disclosed in the notes to the financial
(xiv) In respect of dealing/trading in shares, securities, statements.
debentures and other investments, in our opinion and (xxi) Based upon the audit procedures performed for the
according to the information and explanations given to us, purpose of reporting the true and fair view of the financial
proper records have been maintained of the transactions statements and as per the information and explanations
and contracts and timely entries have been made therein. given by the management, we report that no fraud on or
The shares, securities, debentures and other investments by the Company has been noticed or reported during the
have been held by the Company, in its own name. year.
(xv) According to the information and explanations given to

us, the Company has given guarantee for loans taken by
others from bank or financial institutions, the terms and For S.r. Batliboi & Co. LLp For G. d. apte & Co.
conditions whereof in our opinion are not prima-facie Chartered Accountants Chartered Accountants
prejudicial to the interest of the Company. ICAI Firm Registration Number: 301003E ICAI Firm Registration Number: 100515W
per Viren h. mehta amey d. Tambekar
(xvi) To the best of our knowledge and belief and according to
Partner Partner
the information and explanations given to us, in our opinion, Membership Number: 048749 Membership Number: 128355
term loans availed by the Company were applied by the
Company during the year for the purposes for which the Place: Mumbai Place: Mumbai
loans were obtained other than funds temporarily invested Date: April 29, 2014 Date: April 29, 2014

59
Balance Sheet
aS at maRch 31, 2014
(Rs. in lacs)
note as at as at
particulars no march 31, 2014 march 31, 2013
i. eQuiTy and LiaBiLiTieS
(1) Shareholders' funds
(a) Share capital 3 22,690.67 22,688.79
(b) Reserves and surplus 4 804,631.06 696,785.17
827,321.73 719,473.96
(2) non-current liabilities
(a) Long-term borrowings 5 2,271,208.89 1,905,304.86
(b) Other Long-term liabilities 6 98,698.95 129,764.03
(c) Long-term provisions 7 127,174.08 113,468.54
2,497,081.92 2,148,537.43
(3) Current liabilities
(a) Short-term borrowings 8 298,589.79 414,686.94
(b) Trade payables 44,592.08 58,344.76
(c) Other current liabilities 6 1,225,628.63 1,076,193.53
(d) Short-term provisions 7 29,355.70 28,544.89
1,598,166.20 1,577,770.12
Total 4,922,569.85 4,445,781.51
ii. aSSeTS
(1) non-current assets
(a) Fixed assets 9
(i) Tangible assets 9,901.78 5,826.70
(ii) Intangible assets 164.49 178.56
(b) Non-current investments 10 68,779.99 59,231.50
(c) Deferred tax assets (net) 11 25,116.23 28,382.80
(d) Long-term loans and advances 12 2,209,907.78 1,948,353.68
(e) Other non-current assets 13 9,442.50 17,015.36
2,323,312.77 2,058,988.60
(2) Current assets
(a) Current investments 14 203,746.33 297,659.63
(b) Cash and bank balances 15 708,597.76 631,932.90
(c) Short-term loans and advances 12 1,678,912.32 1,449,484.29
(d) Other current assets 13 8,000.67 7,716.09
2,599,257.08 2,386,792.91
Total 4,922,569.85 4,445,781.51
Significant Accounting Policies 2.1
The accompanying notes are an integral part of the financial statements.
As per our report of even date

For S.r.BaTLiBoi & Co. LLp For G. d. apte & Co. For and on behalf of the Board of Directors of
ICAI Firm Registration No. 301003E ICAI Firm Registration No. 100515W Shriram Transport Finance Company Limited
per Viren h. mehta ameya d. Tambekar arun duggal umesh revankar

Partner Partner Chairman Managing Director
Membership No. 048749 Membership No. 128355
Mumbai parag Sharma Vivek m. achwal

April 29, 2014 Chief Financial Officer Company Secretary

Statement oF PRoFit & loSS
FoR the yeaR ended maRch 31, 2014
(Rs. in lacs)
note year ended year ended

inCome
Revenue from operations 16 788,009.70 655,813.42
Other income 17 816.21 545.57
Total 788,825.91 656,358.99
expendiTure
Employee benefit expenses 18 40,885.97 38,890.20
Finance cost 19 393,251.86 287,555.34
Depreciation and amortisation 9 2,913.79 1,833.09
Other expenses 20 54,090.34 41,376.66
Provisions & write offs 21 114,879.69 85,084.59
Total 606,021.65 454,739.88
Profit before taxation 182,804.26 201,619.11
Provision for taxation
Current tax 53,116.92 72,272.40
Deferred tax 11 3,266.57 (6,715.30)
Total tax expense / (income) 56,383.49 65,557.10
Profit after tax from operations 126,420.77 136,062.01
earnings per share 22
Basic (Rs.) 55.72 59.98
Diluted (Rs.) 55.72 59.98
Nominal value of equity share (Rs.) 10.00 10.00




61
caSh Flow Statement
(Rs. in lacs)
year ended year ended
particulars march 31, 2014 march 31, 2013
a. CaSh FLow From operaTinG aCTiViTieS
Profit before taxes 182,804.26 201,619.11
Depreciation and amortisation 2,913.79 1,833.09
Loss / (profit) on sale of fixed assets (net) (308.21) 47.11
Provision for diminution in value of investments 16.81 (178.66)
Employees Stock option compensation cost 0.90 (86.69)
Premium on Government Securities 10.49 0.80
Amortisation of Discount on Government Securities (91.77) (74.82)
Amortisation of Issue expenses for equity shares 152.78 152.78
Amortisation of Public issue expenses for non convertible debentures 1,467.06 1,578.01
Provision for credit loss on securitisation - 17,617.43
Provisions for non performing assets and bad debt written off 113,601.45 65,369.78
Provisions for standard assets 1,261.43 2,276.04
Provision for gratuity (1,715.11) 395.31
Provision for leave encashment 193.79 185.86
Operating profit before working capital changes 300,307.67 290,735.15
movements in working capital:
Increase / (decrease) in trade payables (13,752.68) 10,780.44
Increase / (decrease) in provisions (19,302.54) (35,178.94)
Increase / (decrease) in provision for service tax- contested 15.81 26.36
Increase / (decrease) in other liabilities (121,625.68) (29,324.44)
(Increase) / decrease in investments 84,326.95 41,549.05
(Increase) / decrease in investments in associates 100.00 (100.00)
(Increase) / decrease in investments in subsidiaries 0.01 (0.01)
Decrease / (increase) in loans and advances (567,056.49) (861,936.16)
Decrease/(increase) in bank deposits
(having original maturity of more than three months)(net) 15,450.96 (43,782.83)
Decrease / (increase) in other assets 273.42 140.01
Cash generated from operations (321,262.57) (627,091.37)
Direct taxes paid (net of refunds) (56,581.90) (73,254.81)
Net cash flow used in operating activities (A) (377,844.47) (700,346.18)
B. CaSh FLowS From inVeSTinG aCTiViTieS
Purchase of fixed including intangible assets (7,180.19) (4,206.05)
Proceeds from sale of fixed assets 515.91 93.79
net cash used in investing activities (B) (6,664.28) (4,112.26)

caSh Flow Statement
FoR the yeaR ended maRch 31, 2014 (contd.)
(Rs. in lacs)

C. CaSh FLowS From FinanCinG aCTiViTieS
Proceeds from issuance of equity share capital 1.88 6.25
Securities premium on issue of equity capital 4.70 15.62
Amount received from institutional borrowing 1,758,710.00 1,992,665.00
Amount received from Public issue of non convertible debentures 123,589.04 60,000.00
Increase / (decrease) in Retail borrowings 127,215.42 84,042.75
Amount redeemed for Public issue of non convertible debentures (27,120.05) (46,923.16)
Repayment of institutional borrowing (1,492,591.85) (1,301,445.27)
Public issue expenses for non convertible debentures paid (2,448.01) (1,316.96)
Dividend paid (15,881.04) (15,877.71)
Tax on dividend (2,698.57) (2,575.35)
Net cash from financing activities (C) 468,781.52 768,591.17
Net increase / (decrease) in cash and cash equivalents (A + B + C) 84,272.77 64,132.73
Cash and Cash equivalents at the beginning of the year 446,994.11 382,746.78
Cash and Bank balances taken over on merger - 114.60
Cash and Cash equivalents at the end of the year 531,266.88 446,994.11
Components of Cash and Cash equivalents

CaSh and CaSh eQuiVaLenTS aT The end oF The year
i) Cash on hand 13,587.88 9,478.19
ii) Cheques on hand 1,976.67 4,997.28
iii) Call Money (CBLO) 69,882.53 -
iv) Balances with scheduled banks in:
Current accounts 184,449.84 374,352.42
Unpaid dividend accounts * 773.96 629.22
Deposits with orginal maturity of less than three months 260,596.00 57,537.00
ToTaL CaSh and CaSh eQuiVaLenTS (noTe 15) 531,266.88 446,994.11
Significant Accounting Policies (Note 2.1)
notes:
1) The above cash flow statement have been prepared under the indirect method set out in Accounting Standard (AS)-3, ‘Cash Flow
Statement’ notified under the provisions of the Companies Act, 1956 (the ‘Act’) read with General circular 8/2014, dated April 04,
2014, issued by the Ministry of Corporate Affairs.
2) All figures in brackets indicate outflow.
3) Direct Tax paid is treated as arising from operating activities and are not bifurcated between investment and financing activities.
4) During the year ended March 31, 2013, Shriram Holdings (Madras) Private Limited (SHMPL) amalgamated with the Company
using “Purchase method” as defined under AS-14 Accounting for Amalgamations notified under Companies (AS) Rules, 2006
(as amended). Assets and liabilities taken over of SHMPL were settled for a net consideration of Rs. 279,487,425. The said net
consideration was settled in the form of 500,868 equity shares of Rs. 10/- each. The Company has allotted the said shares on
November 05, 2012. Details of Net Assets taken over has been disclosed under Note 33 to the financial statements. The said net
assets include cash and bank balances amounting to Rs. 200/- and Rs. 11,460,048/- respectively. The said balances was taken
over on November 05, 2012.
*5) These balances are not available for use by the Company as they represent corresponding unpaid dividend liability.




63
‘noteS FoRming PaRt oF the
Financial StatementS FoR the yeaR ended maRch 31, 2014 (contd.)
1. CorporaTe inFormaTion
Shriram Transport Finance Company Limited (the Company) is a public company domiciled in India and incorporated under
the provisions of the companies Act, 1956. Its shares are listed on Bombay Stock Exchange and National Stock Exchange.
The company provides finance for commercial vehicles, construction equipments and other loans.
2. BaSiS oF preparaTion
The financial statements have been prepared in conformity with generally accepted accounting principles to comply in all
material respects with the notified Accounting Standards (‘AS’) under provisions of the Companies Act, 1956 (‘the Act’) read
with General Circular 8/2014 dated April 04, 2014 , issued by the Ministry of Corporate Affairs and the guidelines issued by
the Reserve Bank of India (‘RBI’) as applicable to a Non Banking Finance Company (‘NBFC’). The financial statements have
been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently
applied by the company and are consistent with those used in the previous year. The complete financial statements have
been prepared along with all disclosures.
2.1. Significant Accounting Policies
a. Current / Non-current classification of assets / liabilities

The Company has classified all its assets / liabilities into current / non-current portion based on the time frame of 12
months from the date of financial statements. Accordingly, assets/liabilities expected to be realised /settled within
12 months from the date of financial statements are classified as current and other assets/ liabilities are classified
as non-current.
b. use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and the results of operations during the
reporting year end. Although these estimates are based upon management’s best knowledge of current events and
actions, actual results could differ from these estimates. Any revisions to the accounting estimates are recognised
prospectively in the current and future years.
c. Fixed assets, depreciation/amortisation and impairment
Tangible fixed assets
Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises
the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period till such assets are ready to be put to use.
Depreciation on tangible fixed assets
Depreciation is provided on Straight Line Method (‘SLM’), which reflect the management’s estimate of the useful
lives of the respective fixed assets and are greater than or equal to the corresponding rates prescribed in Schedule
XIV of the Act.
particulars rates (SLm) Schedule xiV rates (SLm)
Plant and equipment 10% 4.75%
Furniture and fixtures 10% 6.33%
Office equipments 10% 4.75%
Buildings 1.63% 1.63%
Computers 20% 16.21%
Vehicles 20% 9.50%
Leasehold improvement is amortised on SLM over the lease term subject to a maximum of 60 months.
All fixed assets individually costing Rs. 5,000/- or less are fully depreciated in the year of installation.
Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit
and loss till the date of acquisition/sale.

intangible assets
Intangible assets are stated at cost less accumulated amortisation and impairment losses, if any. Cost comprises
Amortisation provided on straight line method (SLM), which reflect the management’s estimate of the useful life of
the intangible asset.
particulars rates (SLm)
Computer software 33.33%
Amortisation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit
impairment of assets
The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based
on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and risks specific to the asset.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful
life.
A previously recognised impairment loss is increased or reversed depending on changes in circumstances.
However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment. The reversal of impairment is recognised in statement of
profit and loss account, unless the same is carried at revalued amount and treated as revaluation reserve.
d. investments
Investments intended to be held for not more than a year are classified as current investments. All other investments
are classified as long-term investments. Current investments are carried at lower of cost and fair value determined
on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in
value is made to recognise a decline, other than temporary, in the value of the investments.
e. Provisioning / Write-off of assets
Non performing loans are written off / provided for, as per management estimates, subject to the minimum provision
required as per Non- Banking Financial (Deposit accepting or holding) Companies Prudential Norms (Reserve
Bank) Directions, 2007. Delinquencies on assets securitised/assigned are provided for based on management
estimates of the historical data.
Provision on standard assets is made as per the notification DNBS.PD.CC.No.207/ 03.02.002 /2010-11 issued by
Reserve Bank of India.
f. Loans
Loans are stated at the amount advanced including finance charges accrued and expenses recoverable, up to the
balance sheet date as reduced by the amounts received and loans securitised.
g. Leases
where the Company is the lessor
Assets given on operating leases are included in fixed assets. Lease income is recognised in the statement of profit
and loss on a straight-line basis over the lease term. Costs, including depreciation are recognised as an expense
in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognised
immediately in the statement of profit and loss.
where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items,
are classified as operating leases. Operating lease payments are recognised as an expense in the statement of
profit and loss on a straight-line basis over the lease term.
h. ForeiGn CurrenCy TranSLaTion
initial recognition
Transactions in foreign currency entered into during the year are recorded at the exchange rates prevailing on the
date of the transaction.

65
Conversion
Monetary assets and liabilities denominated in foreign currency are translated in to rupees at exchange rate
prevailing on the date of the balance sheet.
Exchange differences
All exchange differences are dealt with including differences arising on translation settlement of monetary items in
the statement of profit and loss.
Forward exchange contracts entered into to hedge foreign currency risk of an existing asset/liability
The premium or discount arising at the inception of forward exchange contract is amortised and recognised
as an expense/income over the life of the contract. Exchange differences on such contracts are recognised in
the statement of profit and loss in the period in which the exchange rates change. Any profit or loss arising
on cancellation or renewal of such forward exchange contract is also recognised as income or expense for the
period.
i. revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured.
i. Income from financing activities is recognised on the basis of internal rate of return on time proportion basis.
Income from other charges are booked at the commencement of the contract. Service tax on charges/fees is
collected by the Company as an intermediary and accordingly revenue is presented on net basis.
ii. Income recognised and remaining unrealised after installments become overdue for six months or more
in case of secured/unsecured loans are reversed and are accounted as income when these are actually
realised.
iii. Additional finance charges / additional interest are treated to accrue only on realisation, due to uncertainty of
realisation and are accounted accordingly.
iv. Income apportioned on securitisation/direct assignment of loan receivables arising under premium structure
is recognised over the tenure of securities issued by SPV/agreements. Interest spread under par structure
of securitisation/direct assignment of loan receivables is recognised on realisation over the tenure of
the ‘securities issued by SPV’ / agreements. Loss/expenditure, if any, in respect of securitisation /direct
assignment is recognised upfront.
Unrealised gain on securitisation comprises of future interest receivable under par structure of securitisation/
assignment.
Securitisation deferred consideration receivable comprises of Company’s share of future interest strip
receivables in case of a par structure securitised / assigned deals.
v. Interest income on fixed deposits/margin money, call money (Collaterised borrowing and lending obligation),
certificate of deposits, pass through certificates, subordinate debts, government securities, inter corporate
deposits and treasury bills is recognised on a time proportion basis taking into account the amount outstanding
and the rate applicable. Discount, if any, on government and other securities acquired as long term investments
is recognised on a time proportion basis over the tenure of the securities.
vi. Dividend is recognised as income when right to receive payment is established by the date of balance
sheet.
vii. Profit/loss on the sale of investments is computed on the basis of weighted average cost of investments and
recognized at the time of actual sale/redemption.
viii. Income from services is recognised as per the terms of the contract on accrual basis.
ix. Income from operating lease is recognized as rentals, as accrued on straight line basis over the period of the
lease.
j. Retirement and other employee benefits
provident Fund
All the employees of the company are entitled to receive benefits under the provident fund, a defined contribution

plan in which both the employee and the company contribute monthly at a stipulated rate. The company has no
liability for future provident fund benefits other than its annual contribution and recognises such contributions as an
expense in the period in which service is received.
Gratuity
The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides
for lump sum payments to employees upon death while in employment or on separation from employment after
serving for the stipulated year mentioned under ‘The Payment of Gratuity Act, 1972’. Liabilities with regard to the
Gratuity Plan are determined by actuarial valuation at each Balance Sheet Date using the Projected Unit Credit
Method. The Company fully contributes all ascertained liabilities to The Trustees- Shriram Transport Finance
Company Limited Employees Group Gratuity Assurance Scheme. Trustees administer contributions made to the
trust and contributions are invested in a scheme of insurance with the IRDA approved Insurance Companies. The
Company recognizes the net obligation of the gratuity plan in the Balance Sheet as an asset or liability, respectively
in accordance with AS-15 ‘Employee Benefits’. Actuarial gains and losses arising from experience adjustments
and changes in actuarial assumptions are recognized in the Statement of Profit and Loss in the period in which they
arise.
Leave encashment
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee
benefit. The company measures the expected cost of such absences as the additional amount that it expects to
pay as a result of the unused entitlement that has accumulated at the reporting date.
The company treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for based
on the actuarial valuation using the projected unit credit method at the reporting date. Actuarial gains/losses are
immediately taken to the statement of profit and loss and are not deferred.
The company presents the entire leave as a current liability in the balance sheet, since it does not have an
unconditional right to defer its settlement for twelve months after the reporting date.
k. Income tax
Tax expense comprises of current tax and deferred tax. Current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred income taxes reflects
the impact of current year timing differences between taxable income and accounting income for the year and
reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent
that there is reasonable certainty that sufficient future taxable income will be available against which such deferred
tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that
they can be realised against future taxable profits.
The un-recognised deferred tax assets are re-assessed by the Company at each balance sheet date and are
recognised to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient
future taxable income will be available against which such deferred tax assets can be realised.
The carrying cost of the deferred tax assets are reviewed at each balance sheet date. The company writes down
the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be
realised. Any such write down is reversed to the extent that it becomes reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available.
l. Segment reporting policies
Identification of segments:
The company’s operating businesses are organised and managed separately according to the nature of products
and services provided, with each segment representing a strategic business unit that offers different products and
serves different markets. The analysis of geographical segments is based on the areas in which major operating
divisions of the company operate.

67
unallocated items:
Unallocated items include income and expenses which are not allocated to any reportable business segment.
Segment policies :
The Company prepares its segment information in conformity with the accounting policies adopted for preparing
and presenting the financial statements of the Company as a whole.
m. earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders
(after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.
n. provisions
A provision is recognised when the Company has a present obligation as a result of past event; it is probable that
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to its present value and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the
current best estimates.
o. Cash and cash equivalents
Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand, cheques on hand,
remittances in transit and short term investments with an original maturity of three months or less.
p. Equity shares and debentures issue expenses
Expenses incurred on issue of equity shares are charged to statement of profit and loss on a straight line basis
over a period of 10 years.
Public issue expenses, other than the brokerage, incurred on issue of debentures are charged off on a straight line
basis over the weighted average tenor of underlying debentures. The brokerage incurred on issue of debentures
is treated as expenditure in the year in which it is incurred.
Expenses incurred for private placement of debentures, are charged to statement of profit and loss in the year in
which they are incurred.
q. Borrowing costs
Borrowing cost includes interest and exchange differences arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest cost. Ancillary and other borrowing costs are charged to
statement of profit and loss in the year in which they are incurred.
r. employee stock compensation costs
In accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by The Institute of
Chartered Accountants of India, the compensation cost relating to employee stock options is measured and
recognised using intrinsic value method. Compensation expense is amortised over the vesting period of the option
on a straight line basis.
s. Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.

(Rs. in lacs)
as at as at
march 31, 2014 march 31, 2013
3. Share CapiTaL
authorised
397,000,000 (March 31, 2013: 397,000,000)
Equity Shares of Rs.10/- each 39,700.00 39,700.00
20,000,000 (March 31, 2013: 20,000,000)
Preference Shares of Rs.100/- each 20,000.00 20,000.00
59,700.00 59,700.00
issued and Subscribed share capital
226,936,877( March 31, 2013: 226,918,077)
equity shares of Rs. 10/- each 22,693.69 22,691.81
paid up (Fully paid up)
Equity Shares
226,882,736 (March 31, 2013: 226,863,936)
22,688.27 22,686.39
48,000 equity shares of Rs.10/- each (Rs. 5/- each paid up forfeited) 2.40 2.40
Total 22,690.67 22,688.79
as at march 31, 2014 as at march 31, 2013

reconciliation of the equity shares outstanding at the numbers rs. numbers rs.
beginning and at end of reporting period. of shares in lacs of shares in lacs
a. Shares outstanding at the beginning of the year 226,863,936 22,686.39 226,300,568 22,630.06
Issued during the period - Employee stock option scheme
18,800 1.88 62,500 6.25
[Refer Note 25]
Issued on account of merger of Shriram Holdings
- - 500,868 50.08
(Madras) Private Limited [Refer Note 33]
Shares outstanding at the end of the year 226,882,736 22,688.27 226,863,936 22,686.39
b. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity
shares is entitled to one vote per share. The dividend is subject to the approval of the shareholders in the ensuing
annual general meeting.
During the year ended March 31, 2014, the amount of per equity share dividend recognized as distributions to equity
shareholders was Rs. 7.00 ( March 31, 2013 : Rs. 7.00). Out of the total dividend declared during the year ended
March 31, 2014, amount of interim dividend paid was Rs. 3.00 per equity share ( March 31, 2013: Rs. 3.00) and
amount of final dividend proposed was Rs. 4.00 per equity share ( March 31, 2013: Rs. 4.00).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of
the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
c. Shares reserved for issue under options
The Company has reserved Nil (March 31, 2013: 18,800) equity shares for issue under employee stock option
scheme 2005. During the year ended March 31, 2014, 18,800 equity shares were vested and exercised.

69
d. Aggregate number of equity shares issued for consideration other than cash during the period of five years
immediately preceeding the reporting date:
The company has issued total 3,712,568 equity shares (March 31 2013 : 4,069,968) during the period of five years
immediately preceding the reporting date on exercise of options granted under the employee stock option plan (ESOP)
wherein part consideration was received in form of employee service, and includes 500,868 equity shares issued on
account of merger of Shriram Holdings (Madras) Private Limited as per note (f) given below.
e. details of shareholders holding more than 5% equity shares in the company

details of shareholding as at march 31, 2014 as at march 31, 2013
% holding % holding
numbers in the numbers of in the
name of the Shareholder of shares class shares class
Equity shares of Rs. 10/- each
Shriram Capital Limited 59,103,162 26.05% 58,502,778 25.79%
Newbridge India Investment II Limited - - 22,847,468 10.07%
PHL Capital Private Limited 22,600,000 9.96% - -
Genesis Indian Investment Company Limited 13,648,064 6.02% 13,926,256 6.14%
As per the records of the company, including its register of shareholders/members, the above shareholding represents
legal ownerships of shares.
f. The Hon’ble Madras High Court sanctioned the Scheme of arrangement for merger of Shriram Holdings (Madras)
Private Limited (SHMPL) with the company( ‘the scheme’) and the scheme came into effect from November 05,2012
when the company filed the scheme with the registrar of companies, Tamil Nadu, Chennai. Pursuant to the scheme,
the investment of SHMPL in the share capital of the company viz. 93,371,512 fully paid-up Equity shares of Rs.10/-
each stood cancelled and the company issued and allotted 93,872,380 new equity shares of Rs. 10/- each fully
paid-up to the shareholders of SHMPL. This resulted into increase of Rs.50.09 lacs in the paid-up capital of the
company with effect from November 05, 2012. The merger is effective from April 01, 2012 and the effect of the same
is considered in the financial statements for the year ended March 31, 2013.

(Rs. in lacs)
as at as at
march 31, 2014 march 31, 2013
4. reSerVeS and SurpLuS
Capital reserve
Balance as per last account 2,761.83 17.03
Add: On account of merger of Shriram Holdings (Madras) Private
Limited [Refer Note 33] - 2,744.80
Closing balance 2,761.83 2,761.83
Capital redemption reserve 5,388.35 5,388.35
Securities premium account
Balance as per last account 175,442.36 175,322.02
Add: Addition on ESOPs exercised 4.70 15.62
Add: Transferred from stock options outstanding 34.00 104.72
Closing balance 175,481.06 175,442.36
debenture redemption reserve
Add: Transfer from surplus balance in the statement of profit and loss 19,370.76 15,815.26
Less: Transfer to statement of profit and loss on account of redemption (8,215.35) (23,461.58)
Less: Transfer to statement of profit and loss on account of revised
guidelines * - (14,309.77)
Stock option outstanding
Employee stock option outstanding - 34.00
Less : Deferred employee compensation outstanding - (0.90)
Closing balance - 33.10
other reserves
Statutory reserve pursuant to Section 45-iC of The rBi act, 1934
Closing balance 155,199.79 129,199.79
General reserve
Surplus in statement of profit and loss
Add: Profit for the current year 126,420.77 136,062.01
Add: Excess provision written back - tax on dividend - 0.41
Less: appropriations
Transfer to statutory reserve as per Section 45-IC of The RBI Act, 1934 (26,000.00) (28,000.00)
Transfer to general reserve (13,000.00) (14,000.00)
Transfer to/from debenture redemption reserve (11,155.41) 21,956.09
Interim dividend [amount per share Rs. 3.00 (March 31, 2013: Rs. 4.00)] (6,806.48) (6,825.68)
Tax on interim dividend (1,156.34) (1,107.30)
Proposed final dividend [amount per share Rs. 4.00 (March 31, 2013:
Rs. 4.00)] (9,075.31) (9,074.56)
Tax on proposed dividend (1,542.35) (1,542.22)
Total appropriations (68,735.89) (38,593.67)
Net surplus in statement of profit and loss 346,310.96 288,626.08
Total 804,631.06 696,785.17
* As per General circular no 04/2013 dated February 11, 2013 issued by Ministry of corporate affairs, Debenture redemption
reserve required to be maintained is revised to 25% from 50% , hence, the excess amount has been transferred back to
the statement of profit and loss for the year ended March 31, 2013.

71
(Rs. in lacs)
non-current Current non-current Current
portion maturities* portion maturities*
5. LonG Term BorrowinGS
Subordinated debts (Unsecured) 391,303.31 50,441.72 312,839.63 54,267.15
redeemable non convertible debentures
Secured 891,321.70 424,337.08 870,097.87 296,481.41
Less: Unamortised discount (145.65) (582.15) (580.61) (2,118.62)
891,176.05 423,754.93 869,517.26 294,362.79
Unsecured 2,150.00 79,580.00 81,730.00 47,380.00
Less: Unamortised discount - (110.08) (110.08) (784.49)
2,150.00 79,469.92 81,619.92 46,595.51
Term loans from banks
Unsecured 10,000.00 - 10,000.00 10,000.00
Secured 718,448.56 392,182.66 508,599.25 281,182.57
Fixed deposits (Unsecured) 192,410.45 38,011.76 68,220.02 66,418.28
Term loans from Financial institutions / Corporates
Secured 65,700.00 38,800.00 54,500.00 27,000.00
Loans and advances from related parties
Subordinated debts (Unsecured)
from Associate - - - 413.40
from Relative of Managing Director 1.10 - 0.30 -
Redeemable non convertible debentures (Secured)
from Associate - - 3.60 2.40
from Managing Director 3.00 - - -
from Relative of Managing Director 14.33 1.39 4.88 2.21
Fixed deposits (Unsecured)
from Relative of Managing Director 2.09 - - 1.02
Total 2,271,208.89 1,022,662.38 1,905,304.86 780,245.33
* Amount disclosed under the Note 6 Other current liabilities

5. LonG Term BorrowinGS (Contd.)
a) Subordinated debt - unsecured

i) Privately placed subordinated debts of Rs. 100,000/- each
Terms of repayment as on march 31, 2014
Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
redeemable at par <12% <14% Total
(from the date of the Balance Sheet) amount amount amount amount amount
Over 60 months - 13,769.00 - - 13,769.00
48-60 Months - - 4,541.00 - 4,541.00
24-36 months - 5,000.00 - - 5,000.00
12-24 months - 25,577.00 - - 25,577.00
Total - 44,346.00 4,541.00 - 48,887.00
Current maturity
upto 12 months - 15,000.00 5,500.00 - 20,500.00

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
<12% <14% Total
redeemable at par
Over 60 months - 13,769.00 4,541.00 - 18,310.00
36-48 months - 5,000.00 - - 5,000.00
24-36 months - 25,577.00 - - 25,577.00
12-24 months - 15,000.00 5,500.00 - 20,500.00
Total - 59,346.00 10,041.00 - 69,387.00
Current maturity
upto 12 months - - 10,510.00 - 10,510.00
ii) Privately placed subordinated debts of Rs. 1,000,000/- each

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
<12% <14% Total
redeemable at par
Over 60 months - 106,010.00 - - 106,010.00
48-60 Months 2,500.00 25,630.00 5,000.00 - 33,130.00
36-48 Months - 25,000.00 - - 25,000.00
24-36 months - 5,000.00 - - 5,000.00
12-24 months - 35,000.00 - - 35,000.00
Total 2,500.00 196,640.00 5,000.00 - 204,140.00

73
Current maturity
Current maturity is Rs. Nil as on March 31, 2014.

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
Over 60 months - 95,890.00 5,000.00 - 100,890.00
48-60 months - 25,000.00 - - 25,000.00
36-48 months - 5,000.00 - - 5,000.00
24-36 months - 35,000.00 - - 35,000.00
Total - 160,890.00 5,000.00 - 165,890.00
Current maturity
upto 12 months - 15,000.00 - - 15,000.00
iii) Privately placed subordinated debts of Rs. 1,000/- each

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
Over 60 months - 65,695.12 - - 65,695.12
48-60 Months 5.40 47,109.29 - - 47,114.69
36-48 Months 1,481.88 6,589.06 - - 8,070.94
24-36 months 46.99 3,487.45 - - 3,534.44
12-24 months - 5,551.41 0.50 - 5,551.91
Total 1,534.27 128,432.33 0.50 - 129,967.10
Current maturity
upto 12 months - 8,038.37 21,903.35 - 29,941.72

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
<12% <14% Total
redeemable at par
Over 60 months 5.40 22,148.21 - - 22,153.61
48-60 months 1,481.88 6,589.06 - - 8,070.94
36-48 months 46.99 3,487.45 - - 3,534.44
24-36 months - 5,551.41 0.50 - 5,551.91
12-24 months - 8,038.37 21,903.35 - 29,941.72
Total 1,534.27 45,814.50 21,903.85 - 69,252.62
Current maturity
upto 12 months - 22,400.37 6,770.18 - 29,170.55

iv) Public issue of subordinated debt of Rs. 1,000/- each (2010)-quoted

Long term borrowing
(Rs. in lacs)
as at as at
rate of
march 31, march 31, redeemable
interest
option detail 2014 2013 at par on
Option -IV 10.41% 91.00 91.00 1-Jun-17
10.81% 1,687.00 1,687.00 1-Mar-17
11.25% 3,746.08 3,746.08 1-Dec-16
Option -V 10.25% 110.30 110.30 1-Jun-17
10.75% 204.32 204.32 1-Jun-17
11.00% 2,471.61 2,471.61 1-Jun-17
Total 8,310.31 8,310.31
Current maturity
Current maturity is Rs. Nil as on March 31, 2014 and March 31, 2013.
(Rs. in lacs)
Total Subordinated debts portion maturities portion maturities
Privately placed (i+ii+iii) 382,994.10 50,441.72 304,529.62 54,680.55
Public issue (iv) 8,310.31 - 8,310.31 -
Total Subordinated debts 391,304.41 50,441.72 312,839.93 54,680.55
Less: issued to related parties 1.10 - 0.30 413.40
Total 391,303.31 50,441.72 312,839.63 54,267.15
B) non convertible debenture (nCd) - Secured

i) Privately placed redeemable non-convertible debentures of Rs. 1,000/- each
Long term borrowing
(Rs. in lacs)
rate of interest
>= 10% >= 12% >= 14%
< 10% < 12% < 14% < 16% >= 16% Total *
redeemable at par (from the
date of the Balance Sheet) amount amount amount amount amount amount
48-60 months - 1,978.33 - - - 1,978.33
36-48 months - 9,385.75 939.52 - - 10,325.27
24-36 months 1.84 47,445.47 719.40 0.88 - 48,167.59
12-24 months 2,584.05 137,415.90 - 792.92 - 140,792.87
Total 2,585.89 196,225.45 1,658.92 793.80 - 201,264.06
Current maturity
upto 12 months 8,736.18 100,014.14 6.40 311.80 - 109,068.52

75

Long term borrowing
(Rs. in lacs)
rate of interest
>= 10% >= 12% >= 14%
< 10% < 12% < 14% < 16% >= 16% Total
48-60 months - 8,613.59 939.52 - - 9,553.11
36-48 months 1.84 6,534.46 719.88 0.88 - 7,257.06
24-36 months 1,669.55 136,832.48 - 792.92 - 139,294.95
12-24 months 3,637.90 100,192.44 6.40 311.80 - 104,148.54
Total 5,309.29 252,172.97 1,665.80 1,105.60 - 260,253.66
Current maturity
upto 12 months 46,737.79 29,109.31 1,582.89 282.32 0.48 77,712.79
nature of security
Secured by equitable mortgage of immovable property. Further secured by charge on plant and machinery,
furniture and other fixed assets of the Company, charge on Company’s hypothecation loans, other loans,
advances and investments of the Company subject to prior charges created or to be created in favour of the
Company’s bankers, financial institutions and others.
Debentures may be bought back subject to applicable statutory and/or regulatory requirements, upon the terms
and conditions as may be decided by the Company.
* Amount pertains to debentures issued prior to notification of the RBI Circular DNBD(PD) CC No.
330/03.10.001/2012-13 dated June 27, 2013.
ii) Privately placed redeemable non-convertible debenture of Rs. 1,000,000/- each

Long term borrowing ( gross of unamortised discount on debenture of rs. 145.65 lacs )
(Rs. in lacs)
rate of interest
>= 10% >= 12% >= 14%
Redeemable at par/premium < 10%^ < 12%*^ ¥ < 14% < 16% >= 16% Total
(from the date of the Balance
Sheet) amount amount amount amount amount amount
Over 60 months 5,960.00 120,920.00 - - - 126,880.00
48-60 months 1,500.00 17,500.00 - - - 19,000.00
36-48 months^ 3,800.00 76,000.00 - - - 79,800.00
24-36 months*^ 7,750.00 123,805.00 - - - 131,555.00
12-24 months^ 6,600.00 40,800.00 - - - 47,400.00
Total 25,610.00 379,025.00 - - - 404,635.00
* Includes 1 NCD of Rs. 625.00 lacs partly paid to the extent of Rs. 50,000/-
^NCD amounting to Rs. 4,200.00 lacs issued at zero coupon rates and redeemable at premium are included in
above on the basis of IRR.

¥ Out of the above NCDs having put/call option are as under

(Rs. in lacs)
Sr no rate of interest amount Put/Call option date

1 10.60% 625.00 12-Aug-16
Total 625.00
Current maturity ( gross of unamortised discount on debenture of rs. 582.15 lacs )

(Rs. in lacs)
rate of interest
>= 10% >= 12% >= 14%
Redeemable at par/premium < 10%^ ¥ < 12%*^¥ < 14% < 16% >= 16% Total
upto 12 months*^¥ 62,010.00 217,585.00 - - - 279,595.00
* Includes 1 NCD of Rs. 625.00 lacs partly paid to the extent of Rs. 50,000/-
^NCD amounting to Rs. 19,720.00 lacs issued at zero coupon rates and redeemable at premium are included
in above on the basis of IRR.

(Rs. in lacs)

1 10.50% 625.00 13-Aug-14
2 10.30% 20,000.00 20-Jul-14
3 9.35% 5,000.00 23-Jun-14
4 9.35% 15,000.00 23-Jun-14
Total 40,625.00

Long term borrowing (gross of unamortised discount on debenture of rs. 580.61 lacs)
(Rs. in lacs)
rate of interest
>= 10% >= 12% >= 14%
Redeemable at par/premium < 10%^ < 12%*^¥ < 14% < 16% >= 16% Total
48-60 months *^ 3,800.00 76,000.00 - - - 79,800.00
36-48 months^¥ 750.00 38,125.00 - - - 38,875.00
24-36 months^ 47,100.00 55,800.00 - - - 102,900.00
12-24 months^¥ 39,010.00 168,585.00 - - - 207,595.00
Total 90,660.00 338,510.00 - - - 429,170.00
* Includes 2 NCDs of Rs. 625.00 lacs each partly paid to the extent of Rs. 50,000/-
^NCDs amounting to Rs. 22,420.00 lacs issued at zero coupon rates and redeemable at premium are included

77

(Rs. in lacs)
1 10.60% 625.00 12-Aug-16
2 10.50% 625.00 13-Aug-14
3 10.30% 20,000.00 20-Jul-14
Total 21,250.00
Current maturity (gross of unamortised discount on debenture of rs. 2,118.62 lacs)

(Rs. in lacs)
rate of interest
Redeemable at par/premium >= 10% >= 12% >= 14%
(from the date of the Balance < 10%^ ¥ < 12%^ ¥ < 14% < 16% >= 16% Total
upto 12 months^¥ 19,510.00 125,900.00 31,000.00 - - 176,410.00

(Rs. in lacs)
1 10.30% 31,000.00 6-Jan-14
2 9.20% 30,000.00 24-Jun-13
3 9.00% 20,000.00 2-May-13
Total 81,000.00
nature of security
Secured by specific assets covered under hypothecation loan and by way of exclusive charge and equitable
mortgage of immovable property.
iii) Privately placed redeemable non-convertible debenture of Rs. 3,000,000/- each

Long term borrowing ( gross of unamortised discount on debenture of rs. nil)
Long term borrowing is Rs. Nil as on March 31, 2014
Current maturity
(Rs. in lacs)
rate of interest
Redeemable at par/premium
(from the date of the Balance >= 10% >= 12% >= 14%
Sheet) < 10% < 12%* < 14% < 16% >= 16% Total
upto 12 months* - 1,600.00 - - - 1,600.00
*Partly paid to the extent of Rs. 100,000/-

Long term borrowing( gross of unamortised discount on debenture of rs. nil)
Current maturity
Current maturity is Rs. Nil as on March 31, 2013
nature of security

iv) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each (2009)
Terms of repayment
Long term borrowing
(Rs. in lacs)
rate of as at march as at march redeemable put and
option detail interest 31, 2014 31, 2013 at par on Call option
Option -I 11.00% - 1,464.79 26-Aug-14 -
11.25% - 280.18 26-Aug-14 -
Option -II 11.25% - 1,096.49 26-Aug-14 -
11.50% - 378.43 26-Aug-14 -
Total - 3,219.89
Current maturity
(Rs. in lacs)
Option -I 11.00% 1,484.62 - 26-Aug-14 -
11.25% 260.36 - 26-Aug-14 -
11.00% - 2,929.58 26-Aug-13 -
11.25% - 560.36 26-Aug-13 -
Option -II 11.25% 1,123.20 - 26-Aug-14 -
11.50% 351.72 - 26-Aug-14 -
11.25% - 2,192.99 26-Aug-13 -
11.50% - 756.85 26-Aug-13 -
Option -III 11.03% - 10,422.51 1-Oct-13 -
11.03% 7,508.65 - 26-Aug-14 -
Option -IV 11.00% - 2,274.12 1-Oct-13 -
11.00% 999.10 - 26-Aug-14 -
Total 11,727.64 19,136.42
nature of security
The funds raised from the public issue of 9,999,996 secured NCD aggregating to Rs. 99,999.96 lacs have been
utilised, after meeting the expenditure of and related to the public issue, for various financing activities of the
Company including lending, investments and repayment of borrowings.
Subject to the provisions of The Companies Act, 1956, where the company has fully redeemed or repurchased any
Secured NCD(s), the company shall have the right to keep such Secured NCDs in effect without extinguishment
thereof, for the purpose of resale or reissue.
The Company has bought back NCDs of Rs. 4,215.23 lacs on 12-March-2010 and Rs. 3,000.00 lacs on 27-
March-2012 , Rs. 23,505.26 lacs on 28-March-2012 and as per the terms of the issue Rs. 46,923.16 lacs and
Rs. 6,439.79 lacs were redeemed on 26-August-2012 and 26-August-2013 respectively.
Put options were exercised for option III and IV on 26-August-2013 and Rs. 2,913.86 lacs and Rs. 1,275.02 lacs
respectively were paid on 1-October-2013 in compliance with the terms of issue.

79
v) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each (2010)

Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 9.00% 1,424.68 - 1-Jun-15 -
9.50% 3,918.55 - 1-Jun-15 -
9.75% 1,160.60 - 1-Jun-15 -
10.00% 231.60 - 1-Jun-15 -
Option –II 9.50% 897.03 897.03 1-Jun-17 1-Jun-15
10.00% 832.20 832.20 1-Jun-17 1-Jun-15
10.25% 3,802.59 3,741.65 1-Jun-17 1-Jun-15
10.50% 722.54 783.48 1-Jun-17 1-Jun-15
Option –III 9.75% 808.45 808.45 1-Jun-15 -
10.25% 785.68 785.68 1-Jun-15 -
10.50% 1,756.76 1,717.73 1-Jun-15 -
10.75% 385.28 424.31 1-Jun-15 -
9.75% - 1,616.90 1-Jun-14 -
10.25% - 1,571.36 1-Jun-14 -
10.50% - 3,435.46 1-Jun-14 -
10.75% - 848.62 1-Jun-14 -
Total 16,725.96 17,462.87
Current maturity
(Rs. in lacs)
Option -I 9.00% - 3,398.67 1-Jun-15 1-Jun-13
9.50% - 10,495.95 1-Jun-15 1-Jun-13
9.75% - 1,496.49 1-Jun-15 1-Jun-13
10.00% - 363.36 1-Jun-15 1-Jun-13
Option –III 9.75% - 1,616.90 1-Jun-13 -
10.25% - 1,571.36 1-Jun-13 -
10.50% - 3,435.46 1-Jun-13 -
10.75% - 848.62 1-Jun-13 -
9.75% 1,616.90 - 1-Jun-14 -
10.25% 1,571.36 - 1-Jun-14 -
10.50% 3,513.52 - 1-Jun-14 -
10.75% 770.56 - 1-Jun-14 -
Total 7,472.34 23,226.81

nature of security
The Company has utilised the entire sum of Rs. 41,689.68 lacs raised from public issue (net off expenses)
towards asset financing activities as per the objects stated in the prospectus for the issue.
The Company has bought back NCDs of Rs. 1,000.00 lacs on 14-July-2011 and as per the terms of the issue
Rs. 7,472.34 lacs were redeemed on 1-June-2013.
Put options were exercised for option I on 1-June-2013 and Rs. 9,019.04 lacs were paid on 5-July-2013 in
compliance with the terms of issue.
vi) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each (2011)
Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 11.60% 53,470.83 53,470.83 11-Jul-16 12-Jul-15
11.35% 24,313.78 24,313.78 11-Jul-16 12-Jul-15
11.10% 7,340.36 7,340.36 11-Jul-16 12-Jul-15
Option –II 11.35% - 3,462.05 11-Jul-14 -
11.10% - 3,173.19 11-Jul-14 -
11.00% - 8,239.72 11-Jul-14 -
Total 85,124.97 99,999.93
Current maturity
(Rs. in lacs)
Option -II 11.35% 3,462.05 - 11-Jul-14 -
11.10% 3,173.19 - 11-Jul-14 -
11.00% 8,239.72 - 11-Jul-14 -
Total 14,874.96 -
nature of security
Secured by specific assets covered under hypothecation loan agreements and by way of exclusive charge and
equitable mortgage of immovable property.

81
vii) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each (2012)
Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 11.15% 8,569.28 8,518.92 9-Aug-15 -
10.25% 14,894.88 14,945.24 9-Aug-15 -
Option –II 11.40% 13,423.10 14,236.98 9-Aug-17 -
10.50% 12,788.11 11,974.23 9-Aug-17 -
Option –III 11.15% 3,725.06 3,738.41 9-Aug-15 -
10.25% 161.04 147.69 9-Aug-15 -
Option –IV 11.40% 6,315.11 6,356.94 9-Aug-17 -
10.50% 123.42 81.59 9-Aug-17 -
Total 60,000.00 60,000.00
Current maturity
nature of security
The Company has utilised the entire sum of Rs. 60,000/- lacs raised from public issue (net off expenses) towards
asset financing activities as per the objects stated in the prospectus for the issue.
viii) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each (2013)-1
Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 10.90% 12,829.17 - 1-Aug-16 -
9.65% 13,568.20 - 1-Aug-16 -
Option –II 11.15% 11,586.22 - 31-Jul-17 -
9.80% 3,356.06 - 31-Jul-17 -
11.15% 11,586.22 - 31-Jul-18 -
9.80% 3,356.07 - 31-Jul-18 -
Option –III 10.63% 5,797.30 - 31-Jul-18 -
9.40% 104.42 - 31-Jul-18 -
Option –IV 10.90% 6,075.57 - 1-Aug-16 -
9.65% 43.60 - 1-Aug-16 -
Option –V 11.15% 2,637.50 - 31-Jul-17 -
9.80% 5.61 - 31-Jul-17 -
11.15% 2,637.50 - 31-Jul-18 -
9.80% 5.60 - 31-Jul-18 -
Total 73,589.04 -
Current maturity

nature of security
Secured by specific assets covered under hypothecation loan agreements and by way of exclusive charge and equitable
The Company has utilised the entire sum of Rs. 73,589.04 lacs raised from public issue (net off expenses) towards
Debentures may be bought back subject to applicable statutory and/or regulatory requirements, upon the terms and
conditions as may be decided by the Company.
ix) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each (2013)-2
Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 11.25% 7,762.63 - 24-Oct-16 -
10.75% 19,373.21 - 24-Oct-16 -
Option –II 11.50% 3,164.51 - 24-Oct-18 -
10.75% 7,489.01 - 24-Oct-18 -
Option –III 11.75% 4,734.26 - 24-Oct-20 -
10.75% 3,023.29 - 24-Oct-20 -
Option –IV 11.25% 2,253.65 - 24-Oct-16 -
10.75% 11.95 - 24-Oct-16 -
Option –V 11.50% 809.97 - 24-Oct-18 -
10.75% 5.00 - 24-Oct-18 -
Option –VI 11.75% 1,370.42 - 24-Oct-20 -
10.75% 2.10 - 24-Oct-20 -
Total 50,000.00 -
Current maturity
nature of security
(Rs. in lacs)
Total non-convertible non-current Current non-current Current
debentures - secured portion maturities portion maturities
Public issue (iv+v+vi+vii+viii+ix) 285,439.97 34,074.95 180,682.70 42,363.23
Total non-convertible debentures-
891,339.03 424,338.47 870,106.35 296,486.02
secured
Less: issued to related parties 17.33 1.39 8.48 4.61
Total 891,321.70 424,337.08 870,097.87 296,481.41

83
C. redeemable non-convertible debentures (nCd) - unsecured

Privately placed unsecured redeemable non-convertible debentures of Rs. 1,000,000/- each
Long term borrowing (gross of unamortised discount on debenture of rs. nil)
(Rs. in lacs)
rate of interest
<10%^ >=10% <12%^ Total
redeemable at par
(from the date of the Balance Sheet) amount amount amount
12-24 months^ - 2,150.00 2,150.00
Total - 2,150.00 2,150.00
^NCDs amounting to Rs. 2,150.00 lacs issued at zero coupon rates and redeemable at premium are included in
Current maturity (gross of unamortised discount on debenture of rs. 110.08 lacs )
(Rs. in lacs)
rate of interest
redeemable at par <10%^ >=10% <12%^ ¥ Total
upto 12 months^¥ 22,750.00 56,830.00 79,580.00
Total 22,750.00 56,830.00 79,580.00

(Rs. in lacs)
1 10.07% 25,000.00 30-Apr-14
Total 25,000.00

(Rs. in lacs)
rate of interest
redeemable at par <10%^ >=10% <12%¥ Total
24-36 months^ - 2,150.00 2,150.00
12-24 months^¥ 22,750.00 56,830.00 79,580.00
Total 22,750.00 58,980.00 81,730.00


¥ Out of the above NCDs having put/call option are as under :
(Rs. in lacs)
1 10.07% 25,000.00 1-May-13
Total 25,000.00
Current maturity (gross of unamortised discount on debenture of rs. 784.49 lacs)

(Rs. in lacs)
rate of interest
redeemable at par <10%^ ¥ >=10% <12%^ Total
upto 12 months^¥ 22,280.00 25,100.00 47,380.00
Total 22,280.00 25,100.00 47,380.00

(Rs. in lacs)
1 9.59% 20,000.00 24-Mar-14
Total 20,000.00
d. Term Loan from bank- unsecured

as at march 31, 2014
Terms of repayment
(Rs. in lacs)
Tenure (from the date rate of non-current Current
of the Balance Sheet) interest repayment details portion maturities
48-60 months 14.00% Bullet 10,000.00 -
Total 10,000.00 -

Terms of repayment
(Rs. in lacs)
48-60 months 14.00% Bullet 10,000.00 -
Upto 12 months 10.00% Bullet - 10,000.00
Total 10,000.00 10,000.00

85
e. Term loans from banks - Secured

Terms of repayment
Long term borrowing
(Rs. in lacs)
10.50% to 10 to 48 installments of monthly,
48-60 months 126,488.69 32,000.00
11.20% quarterly & half yearly frequency
5 to 48 installments of monthly,
10.35% to
36-48 months quarterly, half yearly & yearly 308,208.36 116,668.67
11.25%
frequency
1 to 60 installments of bullet,
10.00% to
24-36 months monthly, quarterly , half yearly & 213,203.52 110,714.29
11.75%
yearly frequency
12-24 months (* refer 9.00% to
monthly, quarterly and half yearly 70,547.99 58,486.01
security details) 12.25%
frequency
9.75% to 1 to 48 installments of bullet,

Upto 12 months - 74,313.69
12.75% monthly and quarterly frequency
Total 718,448.56 392,182.66
(Rs. in lacs)
nature of security as at march 31, 2014
a) *includes secured by hypothecation of vehicles for own use 2.91
b) Secured by an exclusive charge by way of hypothecation of specific movable assets
1,110,628.31
being fixed / current assets relating to hypothecation loans
Total 1,110,631.22

Terms of repayment
Long term borrowing
(Rs. in lacs)
48-60 months 10.35% to 5 to 20 installments of quarterly
111,999.95 28,000.00
10.75% and yearly frequency
36-48 months 1 to 60 installments of bullet,
10.35% to
11.75%
frequency
24-36 months (* refer 1 to 60 installments of bullet,
9.00% to
security details) monthly, quarterly, half yearly 115,710.78 40,435.98
12.50%
frequency
12-24 months 1 to 48 installments of bullet,
9.50% to
monthly, quarterly, half yearly 68,474.28 25,701.00
13.00%
and yearly frequency
Upto 12 months 1 to 48 installments of bullet,
9.00% to
monthly, quarterly, half yearly - 115,855.11
13.75%
and yearly frequency
Total 508,599.25 281,182.57


(Rs. in lacs)
nature of security as at march 31, 2013
789,776.64
Total 789,781.82
F. Fixed deposits- Unsecured -Refer Note 27

Long term borrowing
(Rs. in lacs)
rate of interest
redeemable at par < 10% >= 10% < 12% Total

48-60 months - 9,075.19 9,075.19
36-48 months - 5,968.13 5,968.13
24-36 months 0.02 134,125.09 134,125.11
12-24 months 14,325.65 28,918.46 43,244.11
Total 14,325.67 178,086.87 192,412.54
Current maturity
Upto 12 months 19,502.62 18,509.14 38,011.76

Long term borrowing
(Rs. in lacs)
rate of interest

48-60 months - 4,424.72 4,424.72
36-48 months - 5,711.40 5,711.40
24-36 months 7,678.53 28,948.08 36,626.61
12-24 months 2,684.84 18,772.45 21,457.29
Total 10,363.37 57,856.65 68,220.02
Current maturity
upto 12 months 55,005.29 11,414.01 66,419.30
(Rs. in lacs)
Total fixed deposits portion maturities portion maturities
Total Fixed deposits 192,412.54 38,011.76 68,220.02 66,419.30
Less: issued to related parties 2.09 - - 1.02
Total 192,410.45 38,011.76 68,220.02 66,418.28

87

G. Term Loan from financial institution/corporates - Secured
Long term borrowing
Terms of repayment
(Rs. in lacs)
36-48 months 20 installments of quarterly
11.10% 27,500.00 10,000.00
frequency
10.50% 33,200.00 16,800.00
frequency
11.00% 5,000.00 12,000.00
frequency
Total 65,700.00 38,800.00
nature of security
Secured by an exclusive charge by way of hypothecation of specific movable assets being fixed/current assets relating
to hypothecation loans.

Long term borrowing
Terms of repayment
(Rs. in lacs)
11.10% 37,500.00 10,000.00
frequency
11.00% 17,000.00 12,000.00
frequency
Total 54,500.00 27,000.00
nature of security
(Rs. in lacs)

Total Long-term borrowings portion maturities portion maturities
Secured borrowings 1,675,341.94 854,738.98 1,432,624.99 602,549.97
Unsecured borrowings 595,866.95 167,923.40 472,679.87 177,695.36
Total Long-term borrowings 2,271,208.89 1,022,662.38 1,905,304.86 780,245.33

(Rs. in lacs)
Long term Short term Long term Short term
6. oTher LiaBiLiTieS
Current maturities of long term debts [Refer Note 5] - 1,022,662.38 - 780,245.33
Interest accrued but not due on loans 48,797.04 100,142.54 57,150.34 79,670.09
Application money on redeemable non convertible
debentures - - 2,109.76 -
Application money on subordinated debts - - 311.59 -
Investor education and protection fund shall be credited
by the following amounts (as and when due)
- Unclaimed dividend - 773.97 - 629.22
- Unclaimed matured deposits and interest accrued
thereon - 4,496.26 - 1,246.86
- Unclaimed matured debentures and interest accrued
thereon - 6,324.62 - 5,402.65
- Unclaimed matured subordinate debts and interest
accrued thereon - 6,295.16 - 3,752.38
Temporary credit balance in bank accounts - 3,614.54 - 72,368.03
Tax deducted at source - 1,662.07 - 1,411.26
Service tax payable - - - 5.09
Statutory dues pertaining to employees - 340.68 - 280.25
Value added tax - 412.34 - 412.34
Works contract tax payable - 1.17 - -
Unrealised gain on securtisation* 35,842.13 78,270.16 57,403.45 130,594.91
Payable to subsidiary company #$ - 632.74 - 175.12
Retention and others 14,059.78 - 12,788.89 -
Total 98,698.95 1,225,628.63 129,764.03 1,076,193.53
* Includes realised gain on premium structure securitization / assignment deals amounting to Rs. 155.31 lacs (March 31,
2013: Rs. 3,455.73 lacs) - Also refer note 2.1 (i) (iv).
# Payable to subsidiary company M/s. Shriram Equipment Finance Company Limited Rs. Nil (March 31, 2013: Rs.
175.12 lacs)
$ Payable to subsidiary company M/s. Shriram Automall India Limited Rs. 632.74 lacs (March 31, 2013: Rs. Nil)
(Rs. in lacs)
7. proViSionS
For employee benefits
For gratuity - 44.96 1,624.39 135.67
For leave encashment and availment - 1,555.75 - 1,361.96
For others
For non-performing assets 114,759.11 - 79,772.55 -
For standard assets [ Refer note (e) of note 2.1] 5,044.61 3,982.70 4,474.23 3,291.65
For credit loss on securitisation 7,370.36 - 27,597.37 -
For service tax- contested - 8,793.99 - 8,778.18
For income tax - 4,360.64 - 4,360.64
[net of advance tax Rs. 166,920.12 lacs (March 31,
2013: Rs. 166,920.12 lacs)]
Proposed dividend - 9,075.31 - 9,074.56
Corporate dividend tax - 1,542.35 - 1,542.23
Total 127,174.08 29,355.70 113,468.54 28,544.89

89
(Rs. in lacs)
as at as at
march 31, 2014 march 31, 2013
8. ShorT Term BorrowinGS
Secured
Redeemable non convertible debentures 41,000.00 69,750.00
Term loans
i) From banks 194,799.86 183,800.00
ii) From financial institutions / corporates 10,000.00 -
Loans repayable on demand (Secured)
Cash credit 35,213.34 98,108.20
unsecured
Unsecured redeemable debenture - 25,000.00
Inter corporate deposits from subsidiary - 975.00
Term loan from banks 2,200.00 -
Commercial papers from other than banks 16,000.00 37,500.00
Less: unamortized discount (623.41) (446.26)
15,376.59 37,053.74
Total 298,589.79 414,686.94
a. non-convertible debenture (nCd)-Secured
i) Privately placed redeemable non-convertible debenture of Rs. 1,000,000/- each
(Rs. in lacs)
rate of interest
>=10% <12%¥ Total
redeemable at par (from the date of the Balance Sheet) amount amount
upto 12 months 40,000.00 40,000.00

(Rs. in lacs)
1 10.95% 30,000.00 26-Sep-14
2 10.72% 7,500.00 24-Sep-14
3 10.72% 2,500.00 24-Sep-14
Total 40,000.00

(Rs. in lacs)
rate of interest
< 10% Total
upto 12 months 69,750.00 69,750.00

8. ShorT Term BorrowinGS (Contd.)
nature of security
Secured by specific assets covered under hypothecation loan and by way of exclusive charge and equitable mortgage
of immovable property.
(ii) Privately placed redeemable non-convertible debenture of Rs. 3,000,000/- each

(Rs. in lacs)
rate of interest
>= 10% < 12%*¥ Total
upto 12 months 1,000.00 1,000.00
*Partly paid to the extent of Rs. 1,00,000/-

(Rs. in lacs)
1 10.50% 1,000.00 19-Aug-14
Total 1,000.00

NCD outstanding is Rs. Nil
nature of security
b. Term loans from bank - Secured

Terms of repayment
(Rs. in lacs)
Tenure
(from the date of the Balance Sheet) rate of interest repayment details as at march 31, 2014
Upto 12 months 10.00 % to 11.25% Bullet 194,799.86
Total 194,799.86
Secured by an exclusive charge by way of hypothecation of specific movable assets being fixed current assets
relating to hypothecation loans
Terms of repayment
(Rs. in lacs)
Tenure
Total 183,800.00
Secured by an exclusive charge by way of hypothecation of specific movable assets being fixed / current assets

91
c. Term loans from financial institution -Secured

Terms of repayment
(Rs. in lacs)
Tenure
Upto 12 months 10.25% Bullet 10,000.00
Total 10,000.00
Terms of repayment
Term loans from financial institution outstanding is Rs. Nil as on March 31, 2013.
d. Term loans from bank -unsecured

Terms of repayment
(Rs. in lacs)
Tenure
Total 2,200.00
Terms of repayment
e. redeemable non-convertible debentures (nCd)- unsecured


(Rs. in lacs)
rate of interest
redeemable at par < 10% >=10% <12% Total

Upto 12 months 25,000.00 - 25,000.00
Total 25,000.00 - 25,000.00
(Rs. in lacs)
f. Cash Credit from bank as at march 31, 2014 as at march 31, 2013
Secured by hypothecation of specific assets covered under
35,213.34 98,108.20
hypothecation loan agreements
Total 35,213.34 98,108.20

g. Commercial paper
(Rs. in lacs)
Tenure
(from the date of the Balance Sheet) rate of interest repayment details as on march 31, 2014
upto 12 months 10.20 % to 10.35 % Bullet 16,000.00
note
1) The amount of commercial paper is disclosed at gross value. The amount of unamortised discount on commercial
paper is Rs. 623.41 lacs.
(Rs. in lacs)
Tenure
note
1.) The amount of commercial paper is disclosed at gross value. The amount of unamortised discount on commercial
2.) The Company has bought back commercial paper of Rs. 25,000.00 lacs on February 11, 2013.
h. inter corporate deposits from subsidiary

Inter corporate deposits from subsidiary is Rs. Nil as on March 31, 2014
(Rs. in lacs)
Tenure
upto 12 months 11.00% Bullet 975.00
(Rs. in lacs)
Total Short-term borrowings as at march 31, 2014 as at march 31, 2013
Secured borrowings 281,013.20 351,658.20
Unsecured borrowings 17,576.59 63,028.74
Total Short-term borrowings 298,589.79 414,686.94

93
(Rs. in lacs)
94
Tangible fixed assets intangible assets

Land - plant and Office Furniture Leasehold Total tangible Computer
particulars freehold Buildings equipment equipment and fixtures Vehicles improvement fixed assets software
9.
Fixed aSSeTS
Gross block
as at april 1, 2012 10.18 526.03 3,788.08 187.72 1,251.01 142.79 3,917.64 9,823.45 789.46
Additions 0.58 - 2,220.28 48.72 415.07 - 1,324.56 4,009.21 196.84
Deletions - - 306.01 16.54 72.94 60.52 360.36 816.37 -
Adjustment - - - - - - - - -
as at march 31, 2013 10.76 526.03 5,702.35 219.90 1,593.14 82.27 4,881.84 13,016.29 986.30

Additions 3.39 - 2,834.05 91.68 744.52 0.10 3,417.34 7,091.08 89.11
Deletions - 138.48 271.85 12.77 116.28 4.22 481.83 1,025.43 -
Adjustment - - - - - - - - -
as at march 31, 2014 14.15 387.55 8,264.55 298.81 2,221.38 78.15 7,817.35 19,081.94 1,075.41
depreciation
as at april 1, 2012 - 119.26 2,174.63 99.44 647.41 92.74 3,065.27 6,198.75 643.29
Charge for the year - 8.58 733.34 26.37 300.58 5.71 591.75 1,666.33 164.45
Deletions - - 250.45 7.97 53.85 30.62 332.58 675.47 -
Adjustment - - - - - - - - -
as at march 31, 2013 - 127.84 2,657.52 117.84 894.14 67.83 3,324.44 7,189.61 807.74
Charge for the year - 7.33 1,118.14 43.37 512.19 4.57 1,122.68 2,808.28 103.18
Deletions - 41.48 216.99 8.29 85.41 4.01 461.55 817.73 -
Adjustment - - - - - - - - -
as at march 31, 2014 - 93.69 3,558.67 152.92 1,320.92 68.39 3,985.57 9,180.16 910.92
net block
as at march 31, 2013 10.76 398.19 3,044.83 102.06 699.00 14.44 1,557.40 5,826.70 178.56
as at march 31, 2014 14.15 293.86 4,705.88 145.89 900.46 9.76 3,831.78 9,901.78 164.49
depreCiaTion and amorTiSaTion

(Rs. in lacs)
year ended
march 31, 2014 march 31, 2013
on tangible assets 2,808.28 1,666.33
on intangible assets 103.18 164.45
on invesment property 2.33 2.31
Total 2,913.79 1,833.09
10. non-CurrenT inVeSTmenTS

(Rs. in lacs)
as at as at
march 31, march 31,
non-current investments 2014 2013
1 Investment property (net of depreciation) 197.47 199.78
2 Non trade :
a. a) Investment in Equity shares-quoted - 240.00
a. b) Investment in Equity shares-unquoted 4,065.00 4,207.51
a. c) Investment in Preference shares 25,000.00 25,100.00
B. Investment in Government securities 33,089.48 23,778.56
C. Investment in Subordinated debts 5,000.00 5,000.00
d. Investment in Venture capital fund 1,453.04 873.15
Less : Aggregate provision for diminution in value of investments (25.00) (167.50)
Total 68,779.99 59,231.50
(Rs. in lacs)
Quantity amount Quantity amount
Face as at as at as at as at
value march 31, march 31, march 31, march 31,
particulars (rs.) 2014 2014 2013 2013
1. investment property
(at cost less accumulated depreciation)
Cost of land and building given on 211.66 211.66
operating lease
14.19 11.88
Less: accumulated depreciation
197.47 199.78
net Block
2. non trade
(valued at cost unless stated otherwise)
a. Shares : Fully paid up
a) Quoted - equity shares
investment in associates 240.00
Shriram Asset Management
10 - - 2,400,000
Company Limited (40% Share) #
(sold during the year)
b) unquoted - equity shares
investment in wholly owned
subsidiaries
Shriram Equipment Finance
10 10,000,000 1,000.00 10,000,000 1,000.00
Company Limited @
Shriram Automall India Limited 10 30,000,000 3,000.00 30,000,000 3,000.00
Shriram Insurance Broking Company
10 - - 60 0.01
Limited [Refer Note 29]
(Company winded up during the year)
investment in other companies
State Industrial Investment
Corporation of Maharashtra Limited 10 50,000 40.00
Credential Finance Limited 10 25,000 -
[At cost less provision for other than
temporary diminution in value of
Rs. 25.00 lacs (March 31, 2013:
Rs. 25.00 lacs)]

95
(Rs. in lacs)
(rs.) 2014 2014 2013 2013
10. non-CurrenT inVeSTmenTS (Contd.)
Ashley Transport Services Limited 100 - - 225,000 -
(Company dissolved during the year)
temporary diminution in value of Rs.
Nil (March 31, 2013: Rs. 142.50 lacs)]
c) unquoted - preference shares
investment in wholly owned
subsidiaries
Shiram Equipment Finance Company 100 25,000,000 25,000.00 25,000,000 25,000.00
Limited
investment in associates
Shriram Asset Management 100 - - 100,000 100.00
Company Limited (Sold 100,000
shares of Rs. 100/- each
during the year)
B. Quoted-Government Securities [refer note 27]

Quoted
6.13% GOI Loan 2028 100 176,000 177.47 176,000 177.57
6.35% GOI Loan 2020 100 2,500,000 2,385.64 2,500,000 2,365.79
6.49% GOI Loan 2015 100 500,000 495.73 500,000 492.13
6.90% GOI Loan 2019 100 5,000,000 4,793.75 5,000,000 4,754.74
7.02% GOI Loan 2016 100 400,000 397.02 400,000 395.77
7.80% GOI Loan 2020 100 2,500,000 2,495.30 2,500,000 2,494.53
8.13% GOI Loan 2022 100 2,500,000 2,502.31 2,500,000 2,502.58
8.24% GOI Loan 2027 100 500,000 497.28 500,000 497.06
8.26% GOI Loan 2027 100 2,500,000 2,454.90 2,500,000 2,484.32
8.26% GOI Loan 2027 100 5,000,000 4,909.80 5,000,000 4,870.24
8.97% GOI Loan 2030 100 2,500,000 2,668.33 2,500,000 2,743.83
8.33% GOI Loan 2026
(Purchased during the year) 100 2,500,000 2,331.34 - -
8.28% GOI loan 2027 100 5,000,000 6,980.61 - -
(Purchased during the year)
C. unquoted - investment in
Subordinate debts
Yes Bank Limited 1,000,000 500 5,000.00 500 5,000.00
d. unquoted- Venture Capital Fund
ICICI Investment
Management Company Limited 10,000 14,530 1,453.04 8,731 873.15
Total 68,779.99 59,231.50
aggregate Value of Quoted investments
Cost of acquisition 33,089.48 24,018.57
Market Value 29,430.21 24,681.26
aggregate Value of unquoted investments
aggregate provision for diminution in
value of investments 25.00 167.50
# These shares are subject to restrictive covenants of regulatory authority.

@ 3,000,000 shares have been pledged against loan availed by subsidiary from Bank.

(Rs. in lacs)
as at as at
march 31, 2014 march 31, 2013
11. deFerred Tax aSSeTS (neT)
Deferred tax asset
Fixed asset: Impact of difference between tax depreciation and
547.80 433.13
depreciation /amortization charged for financial reporting period
Impact of expenditure charged to the statement of profit and loss in
4,440.61 4,128.59
the current year but allowed for tax purpose on payment basis
Provision for securitization 18,240.09 22,110.15
Provision for standard assets 3,068.38 2,519.64
Gross deferred tax assets (A) 26,296.88 29,191.51
Deferred tax liability
Debenture Issue Expenses 1,180.65 808.71
Gross deferred tax liability (B) 1,180.65 808.71
Net deferred tax assets (A-B) 25,116.23 28,382.80
(Rs. in lacs)
portion portion # portion portion #
12. LoanS and adVanCeS
unsecured, considered good
Capital Advances 148.63 - 610.68 -
Security Deposits 3,077.40 827.03 2,075.85 1,095.16
Secured, considered good
Hypothecation loans 1,943,326.59 1,442,774.55 1,743,738.16 1,206,603.62
Retained interest on securitisation 41,178.54 40,768.00 31,172.67 21,172.94
Other loans 10.19 30.05 82.80 39.97
Securtisation deferred consideration receivable 37,139.46 79,937.37 54,636.13 130,077.34
Unsecured loans^ 12,928.42 102,133.39 9,682.50 84,315.21
Advance - hypothecation loans 1,007.45 - 1,873.60 -
Debtors on securitisation [net of deliquency provision
Rs. 46,292.75 lacs (March 31, 2013: Rs. 37,541.27 - 34.09 - 1,189.05
lacs)]
Advance recoverable from subsidiaries
14,152.06 189.96 - 438.50
[ Refer note 28]*$
doubtful
Secured hypothecation loans 139,211.07 - 94,377.74 -
Other loans 350.64 - 615.32 -
Unsecured loan 5,452.50 - 3,175.33 -
Advances recoverable in cash or in kind or for value
36.14 - 36.14 -
to be received

97
(Rs. in lacs)
12. LoanS and adVanCeS (Contd.)
other loans and advances -unsecured,
considered good
Advances recoverable in cash or in kind or for value 3,327.54 9,095.98 973.72 2,898.66
to be received
Service tax credit (input) receivable - 2,308.62 - 752.43
Prepaid expenses 155.26 813.28 362.13 901.41
Advance income tax (net of provision for taxation)
8,405.89 - 4,940.91 -
[Refer Note 33]
[net of provision for income tax Rs. 237,687.55 lacs
(March 31, 2013: Rs. 182,570.63 lacs)]
Total 2,209,907.78 1,678,912.32 1,948,353.68 1,449,484.29
# Includes current maturities of long term loans and advances

^ Advance given to the company in which a director is interested Rs. Nil (March 31, 2013: Rs. 136.29 lacs)
* Advance given to subsidiary M/s. Shriram Equipment Finance Company Limited Rs. 14,342.02 lacs (March
31, 2013: Rs. 319.67 lacs)
$ Advance given to subsidiary M/s. Shriram Automall India Limited Rs. Nil (March 31, 2013: Rs. 118.83 lacs )
(Rs. in lacs)
portion portion portion portion
13. oTher aSSeTS
Fixed deposits with banks (Note 15) 0.50 - - -
Margin money deposit with banks (Note 15) 6,374.05 - 14,217.60 -

Interest accrued on investments - 1,029.29 - 1,148.20
Interest accrued on fixed deposits with banks 372.08 5,302.51 505.43 5,323.66
Public issue expenses for non convertible debentures 1,957.42 1,516.10 1,401.11 1,091.46
Issue expenses for equity shares 738.45 152.77 891.22 152.77
Total 9,442.50 8,000.67 17,015.36 7,716.09

(Rs. in lacs)
as at as at
march 31, march 31,
2014 2013
14. CurrenT inVeSTmenTS
1 Investment in Government securities - 85.03
2 a) Investment in Certificate of deposit with banks 203,561.74 297,574.60
2 b) Investment in Mutual fund 201.40 -
Less : Aggregate provision for diminution in value of investments (16.81) -
(Rs. in lacs)
Total 203,746.33 297,659.63
particulars (rs.) 2014 2014 2013 2013
Current portion of long term investments
1. (valued at cost unless otherwise mentioned)
a) Quoted: Government Securities
[Refer note 27]
12.40% GOI Loan 2013 100 - - 85,000 85.03
This security is redeemable on August 20,
2013 at par
2.
Current investments
(At lower of cost and fair value)
a) Unquoted: Investment in Certificate of
deposit with Banks
Allahabad Bank 20,000 19,587.42 - -
Andhra
[At cost Bank
less provision for diminution in value of Rs. 30,000 29,458.76 20,000 18,436.20
9.39 lacs (March 31, 2013: Rs. Nil) ]
Axis Bank - - 30,000 29,229.36
Bank of Baroda 2,500 2,452.54 2,500 2,309.57
[At cost less provision for diminution in value of Rs.
0.01 lacs (March 31, 2013: Rs. Nil) ]
Bank of India - - 2,500 2,442.49
Canara Bank - - 20,000 19,584.48
Central Bank of India 10,000 9,896.90 20,000 19,564.42
Federal Bank Limited - - 10,000 9,837.48
HDFC Bank Limited - - 5,000 4,900.71
ICICI Bank Limited - - 20,000 19,708.42
Industrial Development Bank of India Limited 25,000 24,556.87 20,000 19,583.62
[At cost less provision for diminution in value of
Rs. 7.41 lacs (March 31, 2013: Rs. Nil) ]
Indian Bank - - 20,000 19,205.82
Indusind Bank Limited 10,000 9,797.95 20,000 19,563.69
Karur Vysya Bank - - 20,000 19,590.16
Punjab National Bank - - 11,000 10,818.19
South Indian Bank 30,000 29,330.27 - -
State Bank of Bikaner & Jaipur - - 5,000 4,913.45
Syndicate Bank 20,000 19,670.98 20,000 19,130.18

99
(Rs. in lacs)
particulars (rs.) 2014 2014 2013 2013
UCO Bank 30,000 29,301.33 - -
Union Bank of India 20,000 19,670.98 - -
United Bank of India - - 40,000 39,135.10
Vijaya Bank 10,000 9,820.93 20,000 19,621.26
b) Quoted: investment in mutual Fund
Shriram Equity & Debt Opportunities Fund
10 2,000,000 200.00
Direct
DWS Insta Cash Plus Fund - Direct Plan
10 840.33 1.40
- Growth
Total 203,746.33 297,659.63
Cost of acquisition 201.40 85.03
Market Value 213.32 87.31
aggregate Value of unquoted investments
aggregate provision for diminution 16.81 -
in value of investments
(Rs. in lacs)

15. CaSh and Bank BaLanCeS

Cash and cash equivalents
i) Balances with scheduled banks in:
Current accounts - 184,449.84 - 374,352.42
Unpaid dividend accounts - 773.96 - 629.22
Deposits with original maturity of less than three
- 260,596.00 - 57,537.00
months
ii) Cheques on hand - 1,976.67 - 4,997.28
iii) Cash on hand - 13,587.88 - 9,478.19
iv) Call Money (CBLO) - 69,882.53 - -
- 531,266.88 - 446,994.11
other bank balances
Deposits with original maturity for more than 12
0.50 290.80 - 290.80
months
Deposits with original maturity for more than 3
- 31,878.40 - 24,735.24
months but less than 12 months
Margin money deposit# 6,374.05 145,161.68 14,217.60 159,912.75
6,374.55 177,330.88 14,217.60 184,938.79
amount disclosed under non-current assets
(6,374.55) (14,217.60)
[Refer Note 13]
Total - 708,597.76 - 631,932.90
# Includes deposits of Rs. 139,935.51 lacs (March 31, 2013 : Rs. 151,893.09 lacs) pledged with Banks as margin for credit
enchancement, Rs. 11,194.65 lacs (March 31, 2013: Rs. 21,995.05 lacs) as margin for guarantees and Rs. 405.57 lacs
(March 31, 2013: Rs. 242.22 lacs) pledged as lien against loans taken.

(Rs. in lacs)
For the year ended For the year ended
march 31, 2014 march 31, 2013
16. reVenue From operaTionS
interest income on
- loan portfolio and related charges 583,812.47 432,726.05
- securitisation and direct assignment 85,372.36 175,165.21
- margin money on securitisation/ assignments 13,354.78 12,819.22
- pass through certificates* 48,304.69 12,066.44
- deposits with banks 6,421.74 1,576.39
- long- term investments 2,725.87 2,201.92
- current investments 2,864.01 3,008.35
Other financial services
Reversal of provision for credit loss on securitisation 11,475.54 -
Income from portfolio management services 85.67 269.82
Income from commission services 3,617.42 1,511.05
Bad debt recovery 474.08 572.33
Dividend on long- term investments [includes dividend from
3.00 3.00
subsidiary Rs. 2.50 lacs (March 31, 2013: Rs. 2.50 lacs)]
Dividend on current investments - 120.12
Profit on sale of long term investments (net) 134.40 -
Profit on sale of current investments (net) 29,363.67 13,773.52
Total 788,009.70 655,813.42
* includes Rs 16,501.23 lacs (March 31, 2013: Rs. Nil) of income on pass through certificates where distribution tax has
been deducted by the trustees as per section 115TA of Income Tax Act.
(Rs. in lacs)
march 31, 2014 march 31, 2013
17. oTher inCome
Income from operating lease 10.14 9.94
Profit on sale of assets (net) 308.21 -
Miscellaneous income 497.86 535.63
Total 816.21 545.57
(Rs. in lacs)
march 31, 2014 march 31, 2013
18. empLoyee BeneFiT expenSeS
Salaries, other allowances and bonus 37,485.00 35,947.12
Gratuity expenses 207.03 540.08
Contribution to provident and other funds 2,079.94 1,688.02
Expense on Employee Stock Option Scheme** 0.90 (86.69)
Staff welfare expenses 1,113.10 801.67
Total 40,885.97 38,890.20
** Negative amount in the year ended March 31, 2013 owing to forfeiture of options granted to employees in the past along
with option lapse on account of employee resignation against which ESOP expense were duly booked in the past over the
vesting period of such options.

101
(Rs. in lacs)
march 31, 2014 march 31, 2013
19. FinanCe CoST
Interest expense
Debentures 157,834.99 115,939.70
Subordinated debts 49,898.36 42,613.42
Fixed deposits 18,404.23 13,520.29
Loans from banks 126,487.99 83,308.85
Loans from institutions and others 9,939.64 4,950.72
Commercial paper 1,647.01 4,866.22
other borrowing costs
Professional charges - resource mobilisation 9,239.80 5,283.74
Processing charges on loans 1,045.75 1,166.33
Brokerage 12,270.88 9,997.32
Sourcing fees 716.59 620.39
Service charges 4,299.56 3,710.35
Amortisation of NCD public issue expenses 1,467.06 1,578.01
Total 393,251.86 287,555.34
(Rs. in lacs)
march 31, 2014 march 31, 2013
20. oTher expenSeS
Rent 7,370.68 6,430.43
Electricity expenses 930.76 715.57
Repairs & maintenance
- Buildings 0.29 1.68
- Others 890.26 912.01
Rates & taxes 168.27 361.50
Printing & stationery 1,350.57 1,821.41
Travelling & conveyance 10,442.15 2,836.22
Advertisement 156.27 578.00
Business promotion 2,486.02 940.34
Royalty 2,093.94 1,780.99
Directors' sitting fees 10.93 7.49
Insurance 39.43 20.23
Communication expenses 4,074.20 2,562.04
Payment to auditor [ Refer Note 32]
As Auditor:
- Audit fees 122.64 126.25
- Tax audit fees 6.90 7.21
- Out of pocket 4.60 6.10
In any other manner:
- Certification 2.34 1.79

(Rs. in lacs)
march 31, 2014 march 31, 2013
20. oTher expenSeS (Contd.)
Bank charges 3,049.29 3,267.86
Processing charges on securitization 5.31 5.31
Professional charges on securitization 5,709.05 6,656.22
Legal & professional charges 2,724.68 2,060.27
Donations 477.25 499.50
Loss on sale of fixed assets (net) - 47.11
Issue expenses for equity shares 152.78 152.78
Miscellaneous expenses 7,883.78 6,061.34
Total 54,090.34 41,376.66
(Rs. in lacs)
march 31, 2014 march 31, 2013
21. proViSionS & wriTe oFFS
Provision for non performing assets 34,062.10 18,004.49
Provision for standard assets [ Refer note (e) of note 2.1] 1,261.43 2,276.04
Provision for diminution in value of investments* 16.81 (178.66)
Bad debts written off 79,539.35 47,365.29
Total 114,879.69 85,084.59
* Negative amount in the year ended March 31, 2013 owing to provision for diminution in value of investments booked on
current investments during previous year ended March 31, 2012 written back on sale in the year ended March 31, 2013.

22. earninGS per Share
Net Profit after tax as per statement of profit and loss 126,420.77 136,062.01
(Rs. in lacs) (A)
Weighted average number of equity shares for calculating 2,268.76 2,268.32
basic EPS (in lacs) (B)
Weighted average number of equity shares for calculating 2,268.76 2,268.50
diluted EPS (in lacs) (C)
Basic earnings per equity share (in Rupees) (Face value of 55.72 59.98
Rs. 10/- per share) (A) / (B)
Diluted earnings per equity share (in Rupees) (Face value of 55.72 59.98
Rs. 10/- per share) (A) / (C)

Weighted average number of equity shares for calculating basic 2,268.76 2,268.32
EPS (in lacs)
Add : Equity shares for no consideration arising on grant of stock - 0.18
options under ESOP (in lacs)
Weighted average number of equity shares in calculating diluted 2,268.76 2,268.50
EPS (in lacs)

103
23. GraTuiTy and oTher poST-empLoymenT BeneFiT pLanS
The Company has an defined benefit gratuity plan. Every employee who has completed five years or more of service is
eligible for a gratuity on separation at 15 days basic salary (last drawn salary) for each completed year of service. The
scheme is funded with an insurance company in the form of qualifying insurance policy.
During the year the company has funded Rs. 1,849.88 lacs for gratuity being defined benefit obligation outstanding as on
September 30, 2013.
Consequent to the adoption of revised AS 15 ‘Employee Benefits’ issued under Companies Accounting Standard Rules,
2006, as amended, the following disclosures have been made as required by the standard:
Statement of Profit and Loss
Net employee benefit expense (recognized in employee cost)
(Rs. in lacs)
Gratuity
Current service cost 309.42 265.80
Interest cost on benefit obligation 140.81 116.01
Expected return on plan assets Nil Not applicable
Net actuarial (gain) / loss recognised in the year (243.20) 158.27
Past service cost Nil Nil
Net benefit expense* 207.03 540.08
Actual return on plan assets 46.75 Not applicable
(Rs. in lacs)
Gratuity
* Net benefit expense includes march 31, 2014 march 31, 2013
transferred from subsidiary company 10.93 10.84
transferred to subsidiary company (3.29) (29.01)
transferred from other company 0.10 Nil
transferred to other company Nil (17.24)
Balance sheet
Benefit asset/(liability)
(Rs. in lacs)
Gratuity
Present value of defined benefit obligation 1,941.59 1,760.07
Fair value of plan assets 1,896.63 Not applicable
Surplus/(deficit) (44.96) (1,760.07)
Less: Unrecognised past service cost Nil Nil
Plan asset / (liability)* (44.96) (1,760.07)
* Disclosed under Note 7 - Provisions
Changes in the present value of the defined benefit obligation are as follows:
(Rs. in lacs)
Gratuity
Opening defined benefit obligation 1,760.07 1,364.76
Interest cost 140.81 116.00
Benefits paid (72.26) (144.76)
Actuarial (gains) / losses on obligation (196.45) 158.27
Closing defined benefit obligation 1,941.59 1,760.07

Changes in the fair value of the plan assets are as follows:

(Rs. in lacs)
Gratuity
Opening fair value of plan assets Nil Not applicable
Expected return Nil Not applicable
Contributions by employer 1,849.88 Not applicable
Benefits paid Nil Not applicable
Actuarial gains /( losses) 46.75 Not applicable
Closing fair value of plan assets 1,896.63 not applicable
The Company did not contribute any amount to gratuity in 2012-13 as the scheme was unfunded.
The Company expects to contribute Rs. 355.15 lacs to gratuity in the next year.
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
Gratuity
% %
Investments with insurer 100 Not applicable
The principal assumptions used in determining gratuity obligations for the Company’s plan are shown below:
Gratuity
Discount rate 9.36% 8.00%
Expected rate of return on assets 8.70% Not applicable
Increase in compensation cost 5.00% 5.00%
Employee Turnover* 5% and 10% 5% and 10%
The estimates of future salary increases, considered in actuarial valuation, are on account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
*5% in case of employees with service period of more than 5 years and 10% for all other employees.
The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable
to the period over which the obligation is to be settled.
amounts for the Current year and previous four years are as follows:
(Rs. in lacs)
march march march march march
particulars
31, 2014 31, 2013 31, 2012 31, 2011 31, 2010
Defined benefit obligation 1,941.59 1,760.07 1,364.76 903.67 612.63
Plan assets 1,896.63 NA NA NA NA
Surplus / (deficit) (44.96) (1,760.07) (1,364.76) (903.67) (612.63)
Experience adjustments on plan liabilities
56.98 72.75 338.86 74.98 55.56
(gains)/losses
Experience adjustments on plan assets
46.75 NA NA NA NA
(losses)/gains
24. Segment information

The Company is engaged in financing activities. It operates in a single business and geographical segment.

105
25. empLoyee SToCk opTion pLan

Series i Series ii Series iii Series iV Series V Series Vi
Date of grant 31-Oct-05 1-Apr-06 9-Oct-06 17-Aug-07 15-Jul-08 13-May-09
Date of Board/committee 19-Oct-05 22-Feb-06 6-Sep-06 17-Aug-07 15-Jul-08 13-May-09
Approval
Date of Shareholder’s 13-Oct-05 13-Oct-05 13-Oct-05 13-Oct-05 13-Oct-05 13-Oct-05
approval
Number of options granted 2,962,500 832,500 910,000 109,000 77,000 50,000
Method of Settlement Equity Equity Equity Equity Equity Equity
(Cash/Equity)
Graded Vesting Period
After 1 year of grant date 10% of 10% of 10% of 10% of 10% of 10% of
options options options options options options
granted granted granted granted granted granted
After 2 years of grant date 20% of 20% of 20% of 20% of 20% of 20% of
Exercisable period 10 years 10 years 10 years 10 years 10 years 10 years
from vesting from vesting from vesting from vesting from vesting from vesting
date date date date date date
Vesting Conditions On achievement of predetermined targets.
The serieswise details have been summarized below:
march 31, 2014

Number of Number of Number of Number of Number of Number of
Shares Shares Shares Shares Shares Shares
Outstanding at the - - 4,000 - - 14,800
beginning of the period
(Number of Shares)
Add: Granted during - - - - - -
the period (Number of
Shares)
Less: Forfeited during - - - - - -
Shares)
Less: Exercised during - - 4,000 - - 14,800
Shares)
Less: Expired during - - - - - -
Shares)

25. empLoyee SToCk opTion pLan (Contd.)

march 31, 2014
Outstanding at the end - - - - - -
of the period (Number of
Shares)
Exercisable at the end of - - - - - -
Shares)
Weighted average - - - - - -
remaining contractual life
(in years)
Weighted average fair 59.04 91.75 74.85 136.40 253.90 201.45
value of options granted
Weighted Average 35.00 35.00 35.00 35.00 35.00 35.00
Exercise Price (Rs.)
march 31, 2013

Outstanding at the 81,900 13,500 39,050 - 28,400 32,900
(Number of Shares)
Shares)
Shares)
Less: Exercised during 10,400 6,000 11,400 - 23,600 11,100

Shares)
Less: Expired during 71,500 7,500 23,650 - 4800 7,000

Shares)
Outstanding at the end - - 4,000 - - 14,800
Shares)
Exercisable at the end of - - 4,000 - - -
Shares)
Weighted average 5.09 5.49 6.01 6.88 7.78 8.60
(in years)
Exercise Price (Rs.)
The weighted average share price for the period over which stock options were exercised was Rs.650.99
(March 31, 2013: Rs. 660.98)

107

The details of exercise price for stock options outstanding at the end of the year are:
march 31, 2014
There are no stock options outstanding as at March 31, 2014.
march 31, 2013
weighted
average
remaining
contractual weighted
range of number life of average
exercise of options options exercise
Series prices outstanding (in years) price
Series i Rs. 35/- - 5.09 Rs. 35/-
Series ii Rs. 35/- - 5.49 Rs. 35/-
Series iii Rs. 35/- 4,000 6.01 Rs. 35/-
Series iV Rs. 35/- - 6.88 Rs. 35/-
Series V Rs. 35/- - 7.78 Rs. 35/-
Series Vi Rs. 35/- 14,800 8.60 Rs. 35/-
Stock options granted

Series i:
The weighted average fair value of stock options granted was Rs. 59.04. The Black Scholes model has been used for
computing the weighted average fair value of options considering the following inputs:
2005 2006 2007 2008
Weighted average share price (Rs.) 93.30 93.30 93.30 93.30
Exercise Price (Rs.) 35.00 35.00 35.00 35.00
Historical Volatility NA NA NA NA
Life of the options granted (Vesting and exercise period) 1.50 2.50 3.50 4.50
in years
Series ii:
2006 2007 2008 2009
Life of the options granted 1.50 2.50 3.50 4.50
(Vesting and exercise period) in years

Series iii:
2006 2007 2008 2009
Historical Volatility (%) NA NA NA NA
Series iV:
2007 2008 2009 2010
Series V:
2008 2009 2010 2011

109
Series Vi:
2009 2010 2011 2012
The expected volatility was determined based on historical volatility data equal to the NSE volatility rate of Bank Nifty which
is considered as a comparable peer group of the Company. To allow for the effects of early exercise, it was assumed
that the employees will exercise the options within six months from the date of vesting in view of the exercise price being
significantly lower than the market price.
Effect of the employee share-based payment plans on the statement of profit and loss and on its financial position:
(Rs. in lacs)
particulars as at march 31, 2014 as at march 31, 2013
Total compensation cost pertaining to employee share-based
0.90 (86.69)
payment plan (entirely equity settled)
Liability for employee stock options outstanding as at year end - 34.00
Deferred compensation cost - 0.90

Since the enterprise used the intrinsic value method the impact on the reported net profit and earnings per share
by applying the fair value based method is as follows:
In March 2005, ICAI has issued a guidance note on “Accounting for Employees Share Based Payments” applicable to
employee based share plan the grant date in respect of which falls on or after April 1, 2005. The said guidance note
requires that the proforma disclosures of the impact of the fair value method of accounting of employee stock compensation
accounting in the financial statements. Applying the fair value based method defined in the said guidance note, the impact
on the reported net profit and earnings per share would be as follows:

particulars
march 31, 2014 march 31, 2013
Profit as reported (Rs. in lacs) 126,420.77 136,062.01
Add: Employee stock compensation
0.90 (86.69)
under intrinsic value method (Rs. in lacs)
Less: Employee stock compensation
0.86 (80.20)
under fair value method (Rs. in lacs)
Proforma profit (Rs. in lacs) 126,420.81 136,055.52
earnings per share
Basic (rs.)
- As reported 55.72 59.98
- Proforma 55.72 59.98
diluted (rs.)
- Proforma 55.72 59.98
Nominal Value (Rs.) 10.00 10.00
26. LeaSeS
in case of assets taken on lease

The company has taken various office premises, furniture and fixtures, computers and plant and machinery under operating
lease. The lease payments recognized in the statement of profit & loss are Rs. 7,370.68 lacs (March 31, 2013: Rs. 6,430.43
lacs). Certain agreements provide for cancellation by either party or certain agreements contains clause for escalation and
renewal of agreements. The non-cancellable operating lease agreements are ranging for a period 6 to 144 months. There
are no restrictions imposed by lease arrangements. There are no sub leases.
The future minimum lease payments in respect of non-cancellable operating lease as at the balance sheet date are
summarized below :
(Rs. in lacs)
minimum Lease payments:
Not later than one year 929.23 876.92
Later than one year but not later than five years 1,519.86 679.04
Later than five years 453.84 58.81

111
In accordance with the Reserve Bank of India circular no.RBI/2006-07/ 225 DNBS (PD) C.C No. 87/03.02.004/2006-
27.
07 dated January 4, 2007, the Company has created a floating charge on the statutory liquid assets comprising
of investment in Government Securities to the extent of Rs. 34,076.00 lacs (March 31, 2013: Rs. 24,161.00 lacs)
in favour of trustees representing the public deposit holders of the Company.
28. reLaTed parTieS diSCLoSure

Related party where control exists
Subsidiary : Shriram Equipment Finance Company Limited (SEFCL)
Shriram Automall India Limited (SAMIL)
Shriram Insurance Broking Company Limited (SIBCL)
(upto December 13, 2013)
other related parties
Enterprises having significant : Shriram Holdings (Madras) Private Limited
influence over the Company (upto November 05, 2012)
Shriram Capital Limited
Newbridge India Investments II Limited (upto May 10, 2013)
Shriram Ownership Trust
Shriram Financial Ventures (Chennai) Private Limited
( w.e.f. August 31, 2012)
Associates : Shriram Asset Management Company Limited

(upto June 18, 2013)
Key Management Personnel : Mr. Umesh Revankar, Managing Director
Relatives of Key Management Personnel : Mrs. Suchita U. Revankar (spouse)

Master Shirish U. Revankar (son)
Master Shreyas U. Revankar (son)
Mrs. Geeta G. Revankar (mother)

STandaLone aCCounTS
28. reLaTed parTieS diSCLoSure (Contd.)

(Rs. in lacs)
key management personnel
(managing director, whole
enterprises having time director, manager relative
significant influence over and other management of key management
the company Subsidiaries associates personnel) personnel Total
march 31, march 31, march 31, march 31, march 31, march 31, march 31, march 31, march 31, march 31, march 31, march 31,
particulars
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Payments/Expenses
Employee benefits for key management - - - - - - - -
48.18 43.56 48.18 43.56
personnel

Royalty paid to Shriram Ownership Trust 2,093.94 1,780.99 - - - - - - - - 2,093.94 1,780.99
Data sourcing fees paid to Shriram Ownership
716.59 620.39 - - - - - - - - 716.59 620.39
Trust
Service charges paid to Shriram Ownership
4,299.56 3,722.35 - - - - - - - - 4,299.56 3,722.35
Trust
Service charges paid to Shriram Capital Limited 3,937.95 3,517.01 - - - - - - - - 3,937.95 3,517.01
Equity dividend paid Ω 3.13 1.52 3.13 1.52
- Shriram Capital Limited 4,104.08 1,755.08 - - - - - - - - 4,104.08 1,755.08
Non-convertible debenture matured Ω - - - - - - - - 2.01 1.09 2.01 1.09
Fixed deposit matured - - - - - - - - 1.02 - 1.02 -
Interest on fixed deposit - - - - - - - - 0.15 0.12 0.15 0.12
Interest on subordinated debt - - - - 17.50 76.30 - - 0.07 0.04 17.57 76.34
Interest on non-convertible debenture - - - - 0.12 0.62 0.22 - 1.64 1.18 1.98 1.80
Investment in equity shares in Shriram

- - - 0.01 - - - - - - - 0.01
Insurance Broking Company Limited Ω
Investment in preference shares Ω - - - - - 100.00 - - - - - 100.00
Employee benefits paid Ω
- Shriram Capital Limited - 17.24 - - - - - - - - - 17.24
- Shriram Automall India Limited - - 9.18 86.90 - - - - - - 9.18 86.90
Rent paid 0.39 2.26 0.39 2.26
- Shriram Capital Limited 20.55 - - - - - - - - - 20.55 -
Interest paid on unsecured Loan
113
114
(Rs. in lacs)

particulars
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Business mobilisation expenses paid to
- - 147.43 155.15 - - - - - - 147.43 155.15
Shriram Automall India Limited
Staff cost paid to Shriram Automall India
- - - 78.07 - - - - - - - 78.07
Limited

Other administrative expenses paid to
- Shriram Insurance Broking Company Limited - - 0.02 1.40 - - - - - - 0.02 1.40
- Shriram Capital Limited 5.11 - - - - - - - - - 5.11 -
- Shriram Automall India Limited - - 8.59 - - - - - - - 8.59 -

Branch opening expenses paid to Shriram
- - 11.22 - - - - - - - 11.22 -
Automall India Limited
Service contract paid to Shriram Automall
- - 46.54 - - - - - - - 46.54 -
India Limited
Unsecured loan given Ω
- Shriram Insurance Broking Company Limited - - - 0.15 - - - - - - - 0.15
- Shriram Capital Limited - 34,500.00 - - - - - - - - - 34,500.00
- Shriram Automall India Limited - - 504.08 - - - - - - - 504.08 -

- Shriram Equipment Finance Company
- - 16,423.58 - - - - - - - 16,423.58 -
Limited
Inter-corporate deposit paid
- Shriram Automall India Limited - - 2,375.00 - - - - - - - 2,375.00 -

STandaLone aCCounTS

(Rs. in lacs)
particulars
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Receipts/Income
Expenses

- Shriram Equipment Finance Company Limited - - 282.84 249.12 - - - - - -
282.84 249.12
Unsecured loan repaid µ
- Shriram Insurance Broking Company Limited - - 0.15 - - - - - - - 0.15 -
- Shriram Automall India Limited - - 1,722.33 673.08 - - - - - - 1,722.33 673.08
- Shriram Equipment Finance Company Limited - - 2,096.40 40,897.24 - - - - - - 2,096.40 40,897.24
Unsecured loan received µ
- Shriram Automall India Limited - - 1,400.00 975.00 - - - - - - 1,400.00 975.00
Interest Received on unsecured loan
Rent and electricity
- Shriram Capital Limited 11.32 15.17 - - - - - - - - 11.32 15.17

- Shriram Asset Management Company Limited - - - - 1.16 5.40 - - - - 1.16 5.40
Employee benefits received µ
- Shriram Equipment Finance Company Limited - - 1.01 - - - - - - - 1.01 -
Non-convertible debenture µ - - - - - - - - 3.29 2.38 3.29 2.38
Fixed deposit µ - - - - - - - - 2.09 - 2.09 -
Subordinated Debts µ - - - - - - - - 0.80 - 0.80 -
Application money of NCD µ - - - - - - - - - 0.50 - 0.50
Dividend on preference shares Shriram
- - 2.50 2.50 - - - - - - 2.50 2.50
Equipment Finance Company Limited
115
116
(Rs. in lacs)

particulars
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Balance outstanding at the year end
Share capital - - - - - - 5.52 5.08 - - 5.52 5.08
- Shriram Capital Limited 5,910.32 5,850.28 - - - - - - - - 5,910.32 5,850.28

Investment in equity shares
- Shriram Automall India Limited - - 3,000.00 3,000.00 - - - - - - 3,000.00 3,000.00
- Shriram Asset Management Company Limited - - - - - 240.00 - - - - - 240.00
Investment in preference shares
- Shriram Asset Management Company Limited - - - - - 100.00 - - - - - 100.00
Unsecured loan recoverable from subsidiary
companies
- Shriram Equipment Finance Company Limited - - 14,152.06 - - - - - - - 14,152.06 -
- Shriram Automall India Limited - - - 118.83 - - - - - - - 118.83
Unsecured loan payable to subsidiary
companies
- Shriram Equipment Finance Company Limited - - - 175.12 - - - - - - - 175.12
Amount payable towards capital advance
- - - 42.42 - - - - - - - 42.42
Shriram Automall India Limited
Interest receivable on unsecured loan
- Shriram Equipment Finance Company Limited - - 189.96 319.67 - - - - - - 189.96 319.67
Expenses recoverable
Non-convertible debenture - - - - - 6.00 3.00 - 15.72 7.09 18.72 13.09
Interest payable on non-convertible debenture - - - - - - 0.22 - 1.19 1.03 1.41 1.03
STandaLone aCCounTS

(Rs. in lacs)
particulars
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Rent receivable from Shriram Capital Limited 0.94 0.94 - - - - - - - - 0.94 0.94
Administrative expenses payable to Shriram

3.65 - - - - - - - - - 3.65 -
Capital Limited
Outstanding expenses
- Shriram Ownership Trust 195.49 1,881.19 - - - - - - - - 195.49 1,881.19
Fixed deposit - - - - - - - - 2.09 1.02 2.09 1.02
Interest payable on fixed deposit - - - - - - - - 0.12 0.30 0.12 0.30
Subordinated debt - - - - - 413.40 - - 1.10 0.30 1.10 413.70
Interest payable on subordinated debt - - - - - 270.57 - - 0.18 0.11 0.18 270.68
Guarantee given by the company

Ω Denotes payments
µ Denotes receipts
117
29. ConTinGenT LiaBiLiTieS noT proVided For
(Rs. in lacs)
a. In respect of Income tax demands where the company has 52,678.52 46,689.12
filed appeal before CIT (Appeals)
b. VAT demand where the company has filed appeal before 2,532.82 1,843.09
Tribunal
c. Service tax liability pertaining to HP/Lease 12,824.07 -
d. Guarantees and counter guarantees 237,503.49 226,750.85
e. Guarantees given for subsidiaries 300.00 500.00
Future cash outflows in respect of (a), (b) and (c) above are determinable only on receipt of judgements /decisions pending
with various forums/authorities. The Company is of the opinion that above demands are not sustainable and expects to
succeed in its appeals.
The Company has received Show Cause Notice demanding service tax on services rendered towards provision of collection
of receivables and liquidity facilities in respect of Securitisation / Direct Assignments for the period 2008-09 to 2011-12 and
the same is contested by the Company.
(Rs. in lacs)
Disputed income tax demand are on account of as at march 31, 2014 as at march 31, 2013
a. Transfer to statutory reserve, provision for NPA, 32,866.07 27,288.44

securitisation, etc
b. Securitisation and royalty for AY 2008-09 and 2007-08 19,773.64 19,400.68
c. Disallowance of ESOP expenses 38.81 -
Total 52,678.52 46,689.12
(Rs. in lacs)
Commitments not provided for as at march 31, 2014 as at march 31, 2013
a. Estimated amount of contracts remaining to be executed on 191.76 382.71

capital account
b. Uncalled amount in investment in ICICI Investment 1,046.96 1,626.85
Management Company Limited
c. Uncalled amount in investment in Shriram Insurance Broking - 49.99
Company Limited (SIBCL)

30. SECURITISATION/ DIRECT ASSIGNMENT
The Company sells loans through securitisation and direct assignment.

The information on securitisation of the Company as an originator in respect of securitisation transaction done during
the year is given below:
(Rs. in lacs)

Total number of loan assets under par structure 210,869 216,084
Total book value of loan assets 805,635.46 780,379.62
Sale consideration received 805,635.46 780,379.62
The information on securitisation of the Company as an originator in respect of outstanding amount of securitised
assets is given below:
(Rs. in lacs)
as at as at
No. of SPVs sponsored by the Company for securitisation 48 34
transactions
Total amount of securitised assets as per the books of SPVs 1,226,692.65 943,519.90
sponsored by the Company
Total amount of exposures retained by the Company to comply with
MRR as on the date of Balance Sheet
a) Off - Balance Sheet Exposures
First Loss 751.25 751.25
Others - -
b) On - Balance Sheet Exposures
First Loss 80,349.45 38,354.45
Investment in PTC 56,347.80 37,112.85
Amount of exposures to securitisation transaction other than MRR
i) Exposures to own securitisations
First Loss - 1,207.00
Others 96,464.92 43,955.46
ii) Exposures to third party securitisations
First Loss - -
Others - -
First Loss 11,664.54 11,462.58
Others 27,307.99 36,045.91
First Loss - -
Others - -

119
30. SECURITISATION/ DIRECT ASSIGNMENT (Contd.)
The information on direct assignment of the Company as an originator in respect of par transaction done during the
year is given below:
(Rs. in lacs)

Total number of loan assets under par structure 87,153 51,920.00
The information on direct assignement of the Company as an originator in respect of outstanding amount of assets
assigned under par structure is given below:
(Rs. in lacs)
as at as at
No. of transactions assigned by the Company 55 70
Total amount outstanding 423,228.38 838,866.02
Total amount of exposures retained by the company to comply with
First Loss - -
Others - -
First Loss - -
Amount of exposures to assigned transaction other than MRR
i) Exposures to own assigned transactions
First Loss 26,909.41 36,749.49
Others 97,287.54 134,145.21
ii) Exposures to third party assigned tranactions
First Loss - -
Others - -
First Loss 19,737.27 33,577.52
Others 575.61 12,268.12
First Loss - -
Others - -

The information on direct assignment of the Company as an originator in respect of premium transaction done during
(Rs. in lacs)

Total number of loan assets under premium structure - -
Total book value of loan assets - -
Sale consideration received - -
assigned under premium structure is given below:
(Rs. in lacs)
as at as at
First Loss - -
Others - -
First Loss - -
Investment in PTC - -
First Loss 4,222.20 6,168.20
Others 1,831.00 17,280.63
First Loss - -
Others - -
First Loss 1,754.36 19,884.27
Others 303.45 5,727.93
First Loss - -
Others - -

121
Based on the intimation received by the Company, some of the suppliers have confirmed to be registered under
31.
“The micro, Small and medium enterprises development (‘mSmed’) act, 2006”. accordingly, the disclosures
relating to amounts unpaid as at the year ended together with interest paid /payable are furnished below:
(Rs. in lacs)
The principal amount remaining unpaid to supplier as at the end of
- -
the year
The interest due thereon remaining unpaid to supplier as at the end
- -
of the year
The amount of interest paid in terms of Section 16, along with the
amount of payment made to the supplier beyond the appointment - -
day during the year
The amount of interest due and payable for the year of delay in
making payment (which have been paid but beyond the appointed
- -
day during the year) but without adding the interest specified under
this Act
The amount of interest accrued during the year and remaining
- -
unpaid at the end of the year
The amount of further interest remaining due and payable even in
the succeeding years, until such date when the interest dues as
above are actually paid to the small enterprise for the purpose of - -
disallowance as a deductible expenditure under section 23 of the
Micro Small and Medium Enterprise Development Act, 2006
In addition to the auditors remuneration shown in operating and other expenses, the Company has also incurred
32.
auditors remuneration in connection with audit and related statutory services to be performed by auditors in
connection with public issue of non convertible debentures of rs. 120.62 lacs (march 31, 2013: rs. 53.38 lacs)
[including out of pocket expenses of Rs. 1.52 lacs (March 31, 2013: Rs. 0.46 lacs)] have been amortised as per
note 13 and shown under other assets.

merGer oF Shriram hoLdinGS (madraS) priVaTe LimiTed [‘ShmpL’] wiTh The

33.
Company durinG The year ended marCh 31, 2013, :
(a) On December 21, 2011, the Board of Directors of the Company have approved the merger SHMPL with the Company.
In terms of the Scheme of Amalgamation & Arrangement (Scheme) approved by Hon’ble High Court of Madras vide
order dated September 13, 2012 and subsequent filing thereof with the Registrar of Companies (‘ROC’), Tamil Nadu
dated November 05, 2012, Shriram Holdings (Madras) Private Limited (“SHMPL”), an Investment company has been
amalgamated with the Company with effect from April 01, 2012. The scheme was effective only after the filing thereof
with ROC, Tamil Nadu and had an appointed date of April 01, 2012.
(b) Prior to the merger, SHMPL held 93,371,512 shares of the Company.
(c) The amalgamation has been accounted for under the “Purchase method” as prescribed by “Accounting Standard
14 (AS-14) Accounting for Amalgamation” notified under Companies (Accounting Standards) Rules, 2006 (as
amended).
(d) In accordance with the said Scheme:
i) All the assets (other than shares of the Company held by “SHMPL” of the Company), debts, liabilities, duties
and obligations of SHMPL have been vested in the Company with effect from April 01, 2012 and have been
recorded at their respective Fair values under the purchase method of accounting for amalgamation. There were
no difference in the accounting policies of “SHMPL” and the Company.
ii) Exchange ratio determined at 313:124 (i.e. 313 equity shares of Rs. 10/- each of the Company for every 124
equity shares of Rs. 10/- each of “SHMPL” and these equity shares ranking pari-passu with the existing equity
shares of the Company.
iii) Additional issue of 500,868 equity shares to the shareholders of SHMPL, pursuant to Net Assets taken of
SHMPL over by the Company.
iv) In accordance with the said scheme, excess of the Net Assets Value taken over by the Company vis-a-vis
additional equity shares issued has been transferred to capital reserves.
v) Details of Net Assets taken over and transfer to Capital reserve is as under:
amount in rupees
Fair Value of the asset:
-Investment 264,510,406.00
-Cash 200.00
-Bank 11,460,048.00
-Other Asset (Advance tax) 3,534,271.00
Less: Liabilities (creditors) (17,500.00)
Fair Value of net asset taken over 279,487,425.00
Less:
Additional issue of equity share (500,868 equity shares
(5,008,680.00)
of Rs. 10 each)
amount taken to capital reserves on amalgamation 274,478,745.00

123
34. expendiTure in ForeiGn CurrenCy (ACCRUAL BASIS)

(Rs. in lacs)

Rating fees 43.90 -
Computer software 7.33 -
Total 51.23 -
35. preViouS year ComparaTiVeS
Previous year figures have been regrouped / rearranged, wherever considered necessary, to conform with current year’s
presentation.




aS reQuired in TermS oF paraGraph 13 oF non-BankinG FinanCiaL (DEPOSIT ACCEPTING OR HOLDING)

CompanieS prudenTiaL normS (RESERVE BANK) direCTionS, 2007
(Rs. in lacs)
amount amount
outstanding overdue
Liabilities side :
1. Loans and advances availed by the nBFCs inclusive of interest accrued
thereon but not paid:
(a) Debenture : Secured 1,441,499.65 6,324.62 #
: Unsecured 88,021.31 NIL
(other than falling within the meaning of public deposits*)
(b) Deferred Credits NIL NIL
(c) Term Loans 1,433,739.84 NIL
(d) Inter-corporate loans and borrowing NIL NIL
(e) Commercial Paper 15,376.59 NIL
(f) Public Deposits* 246,113.21 4,496.26 #
(g) Other Loans - Subordinate Debts 498,461.01 6,295.16 #
- Cash Credit 35,305.08 NIL
- Corporate Loan NIL NIL
*Please see Note 1 below
2. Break-up of (1)(f) above
(Outstanding public deposits inclusive of interest accrued thereon but not paid):
(a) In the form of Unsecured debentures NIL NIL
(b) In the form of partly secured debentures i.e debentures where there is a NIL NIL
shortfall in the value of security
(c) Other public deposits 246,113.21 4,496.26
*Please see Note 1 below
# Represent amounts unclaimed
assets side :
3. Break-up of Loans and advances including bills receivables
(other than those included in (4) below):
(a) Secured 390.88
(b) Unsecured 120,514.32
4. Break up of Leased assets and stock on hire counting towards aFC activities
(i) Lease assets including lease rentals under sundry debtors :
(a) Financial lease NIL
(b) Operating lease NIL
(ii) Stock on Hire including hire charges under sundry debtors :
(a) Assets on hire NIL
(b) Repossessed Assets NIL
(iii) Other loans counting towards AFC Activities :
(a) Loans where assets have been repossessed 31,778.14
(b) Loans other than (a) above 3,494,541.51

125

CompanieS prudenTiaL normS (RESERVE BANK) direCTionS, 2007 (Contd.)
(Rs. in lacs)
amount
outstanding
5. Break-up of investments :
Current investments :
1. Quoted :
(i) Shares : (a) Equity NIL
(b) Preference NIL
(ii) Debenture and Bonds NIL
(iii) Units of mutual funds NIL
(iv) Government Securities NIL
(v) Others (Please specify) NIL
2. unquoted :
(b) Preference NIL
(ii) Debentures and Bonds NIL
(v) Others: (a) Investment in Certificate of Deposits 203,544.94
(b) Debentures NIL
(c) Mutual Funds 201.40
Long Term investments :
1. Quoted :
(b) Preference NIL
(iv) Government Securities 33,089.48
(v) Others (Please specify) NIL
2. unquoted :
(i) Shares : (a) Equity 4,040.00
(b) Preference 25,000.00
(v) Others - Venture Capital Fund 1,453.04
Investment in Subordinate Debts 5,000.00


CompanieS prudenTiaL normS (RESERVE BANK) direCTionS, 2007 (Contd.)
6. Borrower group-wise classification of assets, financed as in (3) and (4) above :
please see note 2 below
(Rs. in lacs)
amount ( Net of provisions )
Category Secured unsecured Total
1. related parties **
(a) Subsidiaries NIL NIL NIL
(b) Companies in the same group NIL NIL NIL
(c) Other related parties NIL NIL NIL
2. other than related parties 3,417,440.07 115,078.94 3,532,519.00
7. Investor group-wise classification of all investments (current and long term) in shares and securities
(both quoted and unquoted):
please see note 3 below
market Value
/ Break up or Book Value
fair value or (net of
Category naV* provisions)
1. related parties **
(a) Subsidiaries 52,695.99 29,000.00
(b) Companies in the same group NIL NIL
(c) Other related parties NIL NIL
2. other than related parties 243,364.42 243,328.85
* Disclosure is made in respect of available information.
** As per Accounting Standard of ICAI (Please see Note 3)
8. other information
particulars amount
(i) Gross non-performing assets
(a) Related parties NIL
(b) Other than related parties 145,050.34
(ii) net non-performing assets
(a) Related parties NIL
(b) Other than related parties 30,291.23
(iii) assets acquired in satisfaction of debt NIL
notes :
1. As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank)
Directions, 1998.
2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve
Bank) Directions, 1998.
3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for calculation of investments and
other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and
break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified
as long term or current in column (5) above.

127
Summary of Financial information of subsidiary companies
for the year ended march 31, 2014 Under section 212(8) of the companies act 1956.
(Rs. in lacs)
Shriram
equipment Finance Shriram automall
particulars Company Limited india Limited
Capital 26,000.00 3,000.00
Reserves 22,890.42 802.64
Total assets 346,800.33 6,908.50
Total liabilities 297,909.91 3,105.86
Investment included in total assets - -
Turnover 54,394.74 7,644.64
Provision for taxation 4,451.83 417.28
Profit after taxation 8,683.45 826.35
Dividend including dividend distribution tax 2.91 -

Financial SectionS
conSolidated

Contents
consolidated Financial section
indePendent aUditoR’s RePoRt 131
Balance sheet 132
statement oF PRoFit & loss 133
cash Flow statement 134
notes 136
indePendent aUditoR’s RePoRt
To, of accounting policies used and the reasonableness of
The Board of Directors of the accounting estimates made by management, as well
as evaluating the overall presentation of the consolidated
Shriram TranSporT FinanCe Company LimiTed
financial statements. We believe that the audit evidence we
We have audited the accompanying consolidated financial
have obtained is sufficient and appropriate to provide a basis
statements of Shriram Transport Finance Company Limited
for our audit opinion.
(“the Company”)and its subsidiaries (collectively the “Group”),
which comprise the consolidated Balance Sheet as at March opinion
31, 2014, and the consolidated Statement of Profit and Loss In our opinion and to the best of our information and according
and consolidated Cash Flow Statement for the year then to the explanations given to us, the consolidated financial
ended, and a summary of significant accounting policies and statements give a true and fair view in conformity with the
other explanatory information. accounting principles generally accepted in India.
management’s responsibility for the Consolidated (a) in the case of the consolidated Balance Sheet, of the
Financial Statements state of affairs of the Group as at March 31, 2014;
Management is responsible for the preparation of these (b) in the case of the consolidated Statement of Profit and
consolidated financial statements that give true and fair view Loss, of the profit for the year ended on that date; and
of the consolidated financial position, consolidated financial
(c) in the case of the consolidated Cash Flow Statement, of
performance and consolidate cash flows of the Group in
the cash flows for the year ended on that date.
accordance with accounting principles generally accepted in
India. This responsibility includes the design, implementation other matters
and maintenance of internal control relevant to the preparation
We did not jointly audit the financial statements of Subsidiaries,
and presentation of the consolidated financial statements
whose financial statements reflect total assets of Rs. 353,076
that give a true and fair view and are free from material
lacs after elimination of inter group balance as at March 31,
misstatement, whether due to fraud or error.
2014, the total revenue of Rs. 61,601 lacs after elimination
auditor’s responsibility of inter group transaction and total cash outflows amounting
to Rs. 14,545 lacs after elimination of inter group transaction
Our responsibility is to express an opinion on these
for the year then ended. The financial statements of the
consolidated financial statements based on our audit. We
subsidiaries, Shriram Equipment Finance Company Limited
conducted our audit in accordance with the Standards on
and Shriram Automall India Limited have been audited by
Auditing issued by the Institute of Chartered Accountants of
S.V. Ghatalia & Associates LLP, Chartered Accountants
India. Those Standards require that we comply with ethical
and G. D. Apte & Co. Chartered Accountants, respectively,
requirements and plan and perform the audit to obtain
whose reports have been furnished to us, and our opinion, in
reasonable assurance about whether the consolidated
so far as it relates to the amounts included in respect of these
financial statements are free from material misstatement.
entities, is based solely on reports of respective auditors. Our
An audit involves performing procedures to obtain audit opinion is not qualified in respect of this matter.
evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected For S.r. Batliboi & Co. LLp For G. d. apte & Co.
depend on the auditor’s judgement, including the assessment Chartered Accountants Chartered Accountants
of the risks of material misstatement of the consolidated ICAI Firm Registration Number: 301003E ICAI Firm Registration Number: 100515W
financial statements, whether due to fraud or error. In making per Viren h. mehta ameya d. Tambekar
those risk assessments, the auditor considers internal control Partner Partner
relevant to the Company’s preparation and presentation of Membership Number: 048749 Membership Number: 128355
the consolidated financial statements that give a true and far
view in order to design audit procedures that are appropriate Place: Mumbai Place: Mumbai
in the circumstances, but not for the purpose of expressing Date: April 29, 2014 Date: April 29, 2014
an opinion on the effectiveness of the Company’s internal
control. An audit also includes evaluating the appropriateness
ConSoLidaTed aCCounTS Annual Report 2013-14

131
consolidated Balance sheet
as at maRch 31, 2014
(Rs. in lacs)
note as at as at
i. eQuiTy and LiaBiLiTieS
(1) Shareholders' funds
(a) Share capital 3 22,690.67 22,688.79
(b) Reserves and surplus 4 828,327.04 711,098.38
851,017.71 733,787.17
(2) non-current liabilities
(a) Long-term borrowings 5 2,396,208.30 2,004,337.45
(b) Other Long term liabilities 6 98,809.37 130,379.66
(c) Long term provisions 7 130,300.64 115,912.07
2,625,318.31 2,250,629.18
(3) Current liabilities
(a) Short-term borrowings 8 339,377.91 459,581.10
(b) Trade payables 52,479.34 76,122.52
(c) Other current liabilities 6 1,333,885.31 1,178,076.22
(d) Short-term provisions 7 30,160.07 29,223.71
1,755,902.63 1,743,003.55
Total 5,232,238.65 4,727,419.90
ii. aS SeTS
(1) non-current assets
(a) Fixed assets 9
(i) Tangible assets 15,266.57 6,921.85
(ii) Intangible assets 216.52 300.42
(iii) Intangible assets under development - 4.10
(b) Non-current investments 10 39,779.99 30,365.84
(c) Deferred tax assets (net) 11 25,555.80 28,712.53
(d) Long-term loans and advances 12 2,376,963.99 2,124,857.28
(e) Other non-current assets 13 9,442.50 17,016.52
2,467,225.37 2,208,178.54
(2) Current assets
(a) Current investments 14 203,746.33 297,659.63
(b) Trade receivables 15 190.67 0.49
(c) Cash and bank balances 16 711,843.68 635,172.69
(d) Short-term loans and advances 12 1,841,231.53 1,578,692.34
(e) Other current assets 13 8,001.07 7,716.21
2,765,013.28 2,519,241.36
Total 5,232,238.65 4,727,419.90




statement oF consolidated PRoFit & loss
(Rs. in lacs)
note year ended year ended
inCome
Revenue from operations 17 847,601.92 701,442.87
Other income 18 416.77 152.93
Total 848,018.69 701,595.80
expendiTure
Adjustment due to decrease/(increase) in inventory of vehicles 35 - 96.11
Refurbishment expenses - 2.41
Employee benefit expenses 19 47,159.80 44,316.72
Finance cost 20 420,220.91 305,894.51
Depreciation and amortisation 9 3,278.41 2,271.24
Other expenses 21 58,992.39 45,524.82
Provisions & write offs 22 121,320.86 87,223.96
Total 650,972.37 485,329.77
Provision for taxation
Current tax 58,095.87 76,944.13
Less: MAT credit entitlement - (188.29)
Deferred tax 3,156.72 (6,878.58)
Total tax expense / (income) 61,252.59 69,877.26
Profit after tax from operations 135,793.73 146,388.77
Share of Profit / (Loss) of Associate - (45.98)
Net profit after taxes and 135,793.73 146,342.79
Share of Profit of Associate
earnings per share 23
Basic (Rs.) 59.85 64.52
Diluted (Rs.) 59.85 64.51
Nominal value of equity share (Rs.) 10.00 10.00




133
consolidated cash Flow statement
(Rs. in lacs)
a. CaSh FLow From operaTinG aCTiViTieS
Profit before taxes 197,046.32 216,266.03
Depreciation and amortisation 3,278.41 2,271.24
Loss / (profit) on sale of fixed assets (net) (306.92) 55.24
Provision for diminution in value of investments 16.81 (178.66)
Employees Stock option compensation cost 11.14 (86.69)
Premium on Government Securities 10.49 0.80
Amortisation of Discount on Government Securities (91.77) (74.82)
Amortisation of Issue expenses for equity shares 152.78 152.78
Amortisation of Public issue expenses for non convertible debentures 1,467.06 1,578.01
Provisions for non performing assets and bad debt written off 119,944.56 67,238.28
Provisions for standard assets 1,359.49 2,546.91
Provision for gratuity (1,873.03) 466.95
Provision for non moving inventory - (3.23)
Provision for leave encashment 211.10 263.01
Operating profit before working capital changes 321,226.44 308,113.28
movements in working capital:
Increase / (decrease) in trade payables (23,643.18) 16,422.46
Increase / (decrease) in provisions (19,302.54) (35,178.94)
Increase / (decrease) in provision for service tax- contested 15.81 26.36
Increase / (decrease) in other liabilities (126,093.13) (29,026.73)
Decrease / (increase) in trade receivables (190.17) 25.30
Decrease / (increase) in inventories - 96.11
(Increase) / decrease in investments 84,561.29 41,448.98
Decrease / (increase) in loans and advances (596,012.43) (1,015,699.28)
Decrease/(increase) in bank deposits
15,450.82 (43,782.83)
(having original maturity of more than three months)(net)
Decrease / (increase) in other assets 273.41 139.89
Cash generated from operations (343,713.68) (757,415.40)
Direct taxes paid (net of refunds) (61,760.78) (78,447.16)
Net cash flow used in operating activities (A) (405,474.46) (835,862.56)
B. CaSh FLowS From inVeSTinG aCTiViTieS
Purchase of fixed including intangible assets (11,743.34) (4,321.22)
Proceeds from sale of fixed assets 516.39 136.92
net cash used in investing activities (B) (11,226.95) (4,184.30)
C. CaSh FLowS From FinanCinG aCTiViTieS
Proceeds from issuance of equity share capital 1.88 6.25
Securities premium on issue of equity capital 4.70 15.62
Amount received from institutional borrowing 1,953,898.05 2,457,610.34
Amount received from Public issue of non convertible debentures 123,589.04 60,000.00
Increase / (decrease) in Retail borrowings 127,215.42 84,042.75

consolidated cash Flow statement
FoR the yeaR ended maRch 31, 2014 (contd.)
(Rs. in lacs)

C. CaSh FLowS From FinanCinG aCTiViTieS (Contd.)
Amount redeemed for Public issue of non convertible debentures (27,120.05) (46,923.16)
Repayment of institutional borrowing (1,655,581.83) (1,628,933.99)
Public issue expenses for non convertible debentures paid (2,448.01) (1,316.96)
Dividend paid (15,881.04) (15,877.71)
Tax on dividend (2,698.99) (2,575.76)
Net cash from financing activities (C) 500,979.17 906,047.38
Net increase / (decrease) in cash and cash equivalents (A + B + C) 84,277.76 66,000.52
Cash and Cash Equivalents at the beginning of the year 450,233.40 384,118.28
Cash and bank balances taken over on merger - 114.60
Cash and Cash Equivalents at the end of the year 534,511.16 450,233.40
(Rs. in lacs)
as at as at
Components of Cash and Cash Equivalents march 31, 2014 march 31, 2013
CaSh and CaSh eQuiVaLenTS aT The end oF The year
i) Cash on hand 13,608.57 9,488.22
ii) Cheques on hand 4,197.25 5,419.28
iii) Call Money (CBLO) 69,882.53 -
iv) Balances with scheduled banks in:
Current accounts 185,452.85 377,159.68
Unpaid dividend accounts * 773.96 629.22
Deposits with orginal maturity of less than three months 260,596.00 57,537.00
ToTaL CaSh and CaSh eQuiVaLenTS (noTe 16) 534,511.16 450,233.40
Significant Accounting Policies (Note 2.1)
notes
1) The above cash flow statement have been prepared under the indirect method set out in Accounting Standard (AS)-3, ‘Cash
Flow Statement’ notified under the provisions of the Companies Act, 1956 (the ‘Act’) read with General circular 8/2014, dated April
04, 2014, issued by the Ministry of Corporate Affairs.
2) All figures in brackets indicate outflow.
3) Direct Tax paid is treated as arising from operating activities and are not bifurcated between investment and financing
activities.
4) During the year ended March 31, 2013, Shriram Holdings (Madras) Private Limited (SHMPL) amalgamated with the Company
using “Purchase method” as defined under AS-14 Accounting for Amalgamations notified under Companies (AS) Rules, 2006
(as amended). Assets and liabilities taken over of SHMPL were settled for a net consideration of Rs. 279,487,425. The said
net consideration was settled in the form of 500,868 equity shares of Rs. 10/- each. The Company has allotted the said shares
on November 05, 2012. Details of Net Assets taken over has been disclosed under Note 34 to the financial statements. The
said net assets include cash and bank balances amounting to Rs. 200/- and Rs. 11,460,048/- respectively. The said balances
was taken over on November 05, 2012.
*5) These balances are not available for use by the Company as they represent corresponding unpaid dividend liability.




135
‘notes’ FoRming PaRt oF the consolidated
Financial statements FoR the yeaR ended maRch 31, 2014
1. BaSiS oF preparaTion
The Consolidated financial statements relates to M/s. Shriram Transport Finance Company Limited (the company), its
subsidiary companies and associate. The company, its subsidiary companies and associate constitute the group. The
financial statements have been prepared in conformity with generally accepted accounting principles to comply in all material
respects with the notified Accounting Standards (‘AS’) under provisions of the Companies Act, 1956 (‘the Act’) read with
General Circular 8/2014 dated April 04, 2014 , issued by the Ministry of Corporate Affairs and the guidelines issued by the
Reserve Bank of India (‘RBI’) as applicable to a Non Banking Finance Company (‘NBFC’).The financial statements have
been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently
applied by the group and are consistent with those used in the previous year.The complete financial statements have been
prepared along with all disclosures.
2. BaSiS oF ConSoLidaTion
i. The financial statements of the subsidiary companies and the associate used in the consolidation are drawn up to the
same reporting date as of the company i.e. year ended March 31, 2014 and are prepared based on the accounting
policies consistent with those used by the company.
ii. The financial statements of the group have been prepared in accordance with the AS 21- ‘Consolidated Financial
Statements’ and AS 23 – ‘Accounting for Investments in Associates’ in consolidated financial statements, notified under
the provisions of the Companies Act, 1956 (the ‘Act’) read with General circular 8/2014, dated April 04, 2014, issued by the
Ministry of Corporate Affairs and other generally accepted accounting principles in India.
iii. The consolidated financial statements have been prepared on the following basis :
1. The financial statements of the company and its subsidiary companies have been combined on a line-by-line basis
by adding together like items of assets, liabilities, income and expenses. The intra-group balances and intra-group
transactions have been fully eliminated except where losses are realised.
2. The consolidated financial statements include the share of profit / loss of the associate company which has been
accounted as per the ‘Equity method’, and accordingly, the share of profit / loss of the associate company (the
loss being restricted to the cost of investment) has been added to / deducted from the cost of investments. An
associate is an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint
venture of the investor.
3. The excess of cost to the company of its investments in the subsidiary companies over its share of equity of the
subsidiary companies, at the dates on which the investments in the subsidiary companies are made, is recognised
as ‘Goodwill’ being an asset in the consolidated financial statements. Alternatively, where the share of equity in
the subsidiary companies as on the date of investment is in excess of cost of investment of the company, it is
recognised as ‘Capital Reserve’ and shown under the head ‘Reserves and Surplus’, in the consolidated financial
statements.
4. Minority interest, if any, in the net assets of consolidated subsidiaries consists of the amount of equity attributable to
the minority shareholders at the dates on which investments are made by the company in the subsidiary companies
and further movements in their share in the equity, subsequent to the dates of investments as stated above.

Financial statements FoR the yeaR ended maRch 31, 2014 (contd.)
iv. The following subsidiary companies are considered in the consolidated financial statements:
Share of ownership Share of ownership
Sr. Country of interest as at interest as at march
no. name of the Subsidiary Company incorporation march 31, 2014 31, 2013
1 Shriram Equipment Finance Company India 100% 100%
Limited (w.e.f. December 15, 2009)
2 Shriram Automall India Limited India 100% 100%
(w.e.f. February 11, 2010)
As the amount involved in transactions with Shriram Insurance Broking Company Limited are not material, the financial
effects have not been considered in the financial statements.
v. The details of Associate Company are as follows :
Share of ownership interest as at
Country of
name of the associate Company incorporation march 31, 2014 march 31, 2013
Shriram Asset Management India - 40.00%
Company Limited
2.1. Significant Accounting Policies

a. Current / Non-current classification of assets / liabilities
The Company has classified all its assets / liabilities into current / non-current portion based on the time frame of 12
months from the date of financial statements. Accordingly, assets/liabilities expected to be realised /settled within
12 months from the date of financial statements are classified as current and other assets/ liabilities are classifies
as non-current.
b. use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and the results of operations during the
reporting period. Although these estimates are based upon management’s best knowledge of current events and
actions, actual results could differ from these estimates. Any revisions to the accounting estimates are recognised
prospectively in the current and future years.
c. Fixed assets, depreciation/amortisation and impairment

Tangible fixed assets
Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the
purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing
costs relating to acquisition of fixed assets which takes substantial year of time to get ready for its intended use are
also included to the extent they relate to the year till such assets are ready to be put to use.
Depreciation on tangible fixed assets
Depreciation is provided on Straight Line Method (‘SLM’), which reflect the management’s estimate of the useful
lives of the respective fixed assets and are higher than or equal to the corresponding rates prescribed in Schedule
XIV of the Act.
particulars rates (SLm) Schedule xiV rates (SLm)
Plant and equipment 10% 4.75%
Furniture and fixtures 10% 6.33%
Office equipments 10% 4.75%
Buildings 1.63% 1.63%
Computers 20% 16.21%
Vehicles 20% 9.50%
Leasehold improvement is amortised on SLM over the lease term subject to a maximum of 60 months.

137
All fixed assets individually costing Rs. 5,000/- or less are fully depreciated in the year of installation.
Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit
intangible assets
Intangible assets are stated at cost less accumulated amortisation and impairment losses, if any. Cost comprises
Amortisation is provided on Straight Line Method (‘SLM’), which reflect the management’s estimate of the useful
life of the intangible asset.
particulars rates (SLm)
Computer software 33.33%
Trademarks 10.00%
Amortisation on assets acquired / sold during the year is recognised on a pro-rata basis to the statement of profit
and loss till the date of acquisition / sale.
impairment of assets
The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based
on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and risks specific to the asset.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful
life.
A previously recognised impairment loss is increased or reversed depending on changes in circumstances.
However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment. The reversal of impairment is recognised in statement of
profit and loss account, unless the same is carried at revalued amount and treated as revaluation reserve.
d. investments
Investments intended to be held for not more than a year from the date on which such investments are made,
are classified as current investments. All other investments are classified as long-term investments. Current
investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term
investments are carried at cost. However, provision for diminution in value is made to recognise a decline, other
than temporary, in the value of the investments.
e. Provisioning / Write-off of assets
Non performing loans are written off / provided for, as per management estimates, subject to the minimum provision
required as per Non- Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions, 2007. Delinquencies on assets securitised/assigned are provided for based on management
estimates of the historical data.
Provision on standard assets is made as per the notification DNBS.PD.CC.No.207/ 03.02.002 /2010-11 issued by
Reserve Bank of India.
f. Loans
Loans are stated at the amount advanced including finance charges accrued and expenses recoverable, upto the
balance sheet date as reduced by the amounts received and loans securitised.
g. Leases
where the Company is the lessor
Assets given on operating leases are included in fixed assets. Lease income is recognised in the statement

of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognised as
an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are
recognised immediately in the statement of profit and loss.
where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items,
are classified as operating leases. Operating lease payments are recognised as an expense in the statement of
profit and loss on a straight-line basis over the lease term.
h. Foreign currency translation

initial recognition
Transactions in foreign currency entered into during the year are recorded at the exchange rates prevailing on the
date of the transaction.
Conversion
Monetary assets and liabilities denominated in foreign currency are translated in to rupees at exchange rate
prevailing on the date of the balance sheet.
Exchange differences
All exchange differences are dealt with including differences arising on translation settlement of monetary items in
the statement of profit and loss.
Forward exchange contracts entered into to hedge foreign currency risk of an existing asset/liability
The premium or discount arising at the inception of forward exchange contract is amortised and recognised as an
expense/income over the life of the contract. Exchange difference on such contracts are recognised in the statement
of profit and loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or
renewal of such forward exchange contract is also recognised as income or expense for the period.
i. revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the
revenue can be reliably measured.
i. Income from financing activities is recognised on the basis of internal rate of return on time proportion basis.
Income from other charges are booked at the commencement of the contract. Service tax on charges/fees is
collected by the Company as an intermediary and accordingly revenue is presented on net basis.
ii. Income recognised and remaining unrealised after installments become overdue for six months or more
in case of secured/unsecured loans are reversed and are accounted as income when these are actually
realised.
iii. Additional finance charges / additional interest are treated to accrue only on realisation, due to uncertainty of
realisation and are accounted accordingly.
iv. Income apportioned on securitisation/direct assignment of loan receivables arising under premium structure
is recognised over the tenure of securities issued by SPV/agreements. Interest spread under par structure
of securitisation/direct assignment of loan receivables is recognised on realisation over the tenure of
the ‘securities issued by SPV’ / agreements. Loss/Expenditure, if any, in respect of securitisation /direct
assignment is recognised upfront.
Unrealised gain on securitisation comprises of future interest receivable under par structure of securitisation/
assignment.
Securitisation deferred consideration receivable comprises of Company’s share of future interest strip
receivables in case of a par structure securitised / assigned deals.
v. Interest income on fixed deposits/margin money, call money, collaterised borrowing and lending obligation,
certificate of deposits, pass through certificates, subordinate debts, government securities, inter coporate
deposits and treasury bills is recognised on a time proportion basis taking into account the amount outstanding

139
and the rate applicable. Discount, if any, on government and other securities acquired as long term investments
is recognised on a time proportion basis over the tenure of the securities.
vi. Dividend is recognised as income when right to receive payment is established by the date of balance
sheet.
vii. Profit/loss on the sale of investments is computed on the basis of weighted average cost of investments and
recognized at the time of actual sale/redemption.
viii. Income from operating lease is recognized as rentals, as accrued on straight line basis over the period of the
lease.
ix. The revenue from sale of the used commercial vehicles is recognized after execution of the contract to sale
and delivery of the vehicle to the buyer. Value added tax on sale of used commercial vehicle is collected by
the company as an intermediary and accordingly revenue is presented on net basis.
x. Income from services (for eg. facilitation fees) is recognized as per the terms of contracts on accrual basis.
xi. Pre-mature Dealer payment discount is recognized as per the terms of the agreement.
j. Retirement and other employee benefits
provident Fund
All the employees of the group are entitled to receive benefits under the provident fund, a defined contribution plan
in which both the employee and the Group contribute monthly at a stipulated rate. The group has no liability for
future provident fund benefits other than its annual contribution and recognises such contributions as an expense
in the period in which service is received.
Gratuity
The group provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides
for lump sum payments to employees upon death while in employment or on separation from employment after
serving for the stipulated year mentioned under ‘The Payment of Gratuity Act, 1972’. Liabilities with regard to
the Gratuity Plan are determined by actuarial valuation at each Balance Sheet Date using the Projected Unit
Credit Method. The group fully contributes all ascertained liabilities to The Trustees- Shriram Transport Finance
Company Limited Employees Group Gratuity Assurance Scheme. Trustees administer contributions made to the
trust and contributions are invested in a scheme of insurance with the IRDA approved Insurance Companies. The
group recognizes the net obligation of the gratuity plan in the Balance Sheet as an asset or liability, respectively in
accordance with AS-15 ‘Employee Benefits’. Actuarial gains and losses arising from experience adjustments and
changes in actuarial assumptions are recognized in the Statement of Profit and Loss in the period in which they
arise.
Leave encashment
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee
benefit. The group measures the expected cost of such absences as the additional amount that it expects to pay as
a result of the unused entitlement that has accumulated at the reporting date.
The group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the reporting date. Actuarial gains/Losses are immediately taken
to the statement of profit and loss and are not deferred.
The group presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional
right to defer its settlement for twelve months after the reporting date.
k. Income tax
Tax expense comprises of current tax and deferred tax. Current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred income taxes reflects
the impact of current year timing differences between taxable income and accounting income for the period and
reversal of timing differences of earlier periods. Deferred tax is measured based on the tax rates and the tax laws

enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent
that there is reasonable certainty that sufficient future taxable income will be available against which such deferred
tax assets can be realised. In situations where the group has unabsorbed depreciation or carry forward tax losses,
all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they
can be realised against future taxable profits.
The un-recognised deferred tax assets are re-assessed by the group at each balance sheet date and are recognised
to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future
taxable income will be available against which such deferred tax assets can be realised.
The carrying cost of the deferred tax assets are reviewed at each balance sheet date. The group writes down the
carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available against which deferred tax asset can be
realised. Any such write down is reversed to the extent that it becomes reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available.
Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The group
recognises MAT credit available as an asset only to the extent that there is convincing evidence that the group
will pay normal income tax during the specified period i.e the period for which MAT credit is allowed to be carried
forward. In the year in which the group recognises MAT credit as an asset in accordance with the guidance note
on accounting for credit available in respect of MAT under the Income tax Act, 1961, the said asset is created by
way of credit to the statement of profit and loss and shown as “MAT credit entitlement”. The Group reviews the
“MAT credit entitlement” asset at each reporting date and writes down the asset to the extent the group does not
have convincing evidence that it will pay normal tax during the specified period.
l. Segment reporting policies
Identification of segments:
The group’s operating businesses are organised and managed separately according to the nature of products
and services provided, with each segment representing a strategic business unit that offers different products and
serves different markets. The analysis of geographical segments is based on the areas in which major operating
divisions of the group operate.
unallocated items:
Unallocated items include income and expenses which are not allocated to any reportable business segment.
Segment policies :
The group prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the group as a whole.
m. earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.
n. provisions
A provision is recognised when the group has a present obligation as a result of past event; it is probable that
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to its present value and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the
current best estimates.

141
o. Cash and cash equivalents
Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand, cheques on hand,
remittances in transit and short term investments with an original maturity of three months or less.
p. Equity shares and debentures issue expenses
Expenses incurred on issue of equity shares are charged on a straight line basis over a period of 10 years.
Public issue expenses, other than the brokerage, incurred on issue of debentures are charged off on a straight line
basis over the weighted average tenor of underlying debentures. The brokerage incurred on issue of debentures
is treated as expenditure in the year in which it is incurred.
Expenses incurred for private placement of debentures, are charged to statement of profit and loss in the year in
which they are incurred.
q. Borrowing costs
Borrowing cost includes interest and exchange differences arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest cost. Ancillary and other borrowing costs are charged to
statement of profit & loss in the year in which they are incurred.
r. employee stock compensation costs
In accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by The Institute of
Chartered Accountants of India, the compensation cost relating to employee stock options is measured and
recognised using intrinsic value method. Compensation expense is amortised over the vesting period of the option
on a straight line basis.
s. Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the group or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The group does not recognize a contingent liability but
discloses its existence in the financial statements.

(Rs. in lacs)
as at as at
march 31, 2014 march 31, 2013
3. Share CapiTaL
authorised
397,000,000 (March 31, 2013: 397,000,000)
Equity Shares of Rs.10/- each 39,700.00 39,700.00
20,000,000 (March 31, 2013: 20,000,000)
Preference Shares of Rs.100/- each 20,000.00 20,000.00
59,700.00 53,500.00
issued and Subscribed share capital
226,936,877( March 31, 2013: 226,918,077)
paid up (Fully paid up)
Equity Shares
226,882,736 (March 31, 2013: 226,863,936)
22,688.27 22,686.39
48,000 equity shares of Rs.10/- each (Rs 5/- each paid up forfeited) 2.40 2.40
Total 22,690.67 22,688.79

a. Reconciliation of the equity shares outstanding at the numbers rs. numbers rs.
beginning and at end of reporting period. of shares in lacs of shares in lacs
Shares outstanding at the beginning of the year 226,863,936 22,686.39 226,300,568 22,630.06
Issued during the year - Employee stock option scheme
[Refer Note 26] 18,800 1.88 62,500 6.25
Issued on account of merger of Shriram Holdings
(Madras) Private Limited [Refer Note 34] - - 500,868 50.08
Shares outstanding at the end of the year 226,882,736 22,688.27 226,863,936 22,686.39
b. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity
shares is entitled to one vote per share. The dividend is subject to the approval of the shareholders in the ensuing
annual general meeting.
During the year ended March 31, 2014, the amount of per equity share dividend recognized as distributions to equity
shareholders was Rs. 7.00 ( March 31, 2013 : Rs. 7.00). Out of the total dividend declared during the year ended
March 31, 2014, amount of interim dividend paid was Rs. 3.00 per equity share ( March 31, 2013: Rs. 3.00) and
amount of final dividend proposed was Rs. 4.00 per equity share ( March 31, 2013: Rs. 4.00).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of
the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
c. Shares reserved for issue under options

The Company has reserved Nil (March 31, 2013: 18,800) equity shares for issue under employee stock option scheme
2005. During the year ended March 31, 2014, 18,800 equity shares were vested and exercised.

143
d. Aggregate number of equity shares issued for consideration other than cash during the period of five
years immediately preceeding the reporting date:
The company has issued total 3,712,568 equity shares (March 31, 2013 : 4,069,968) during the period of five years
immediately preceding the reporting date on exercise of options granted under the employee stock option plan (ESOP)
wherein part consideration was received in form of employee service, and includes 500,868 equity shares issued on
account of merger of Shriram Holdings (Madras) Private Limited as per note (f) given below.
e. Details of shareholders holding more than 5% equity shares in the company
details of shareholding as at march 31, 2014 as at march 31, 2013

% holding % holding
number of in the number of in the
name of the Shareholder Shares class Shares class
Equity shares of Rs. 10/- each
Shriram Capital Limited 59,103,162 26.05% 58,502,778 25.79%
Newbridge India Investment II Limited - - 22,847,468 10.07%
PHL Capital Private Limited 22,600,000 9.96% - -
Genesis Indian Investment Company Limited 13,648,064 6.02% 13,926,256 6.14%
As per the records of the Company, including its register of shareholders/members, the above shareholding represents
legal ownerships of shares.
f. The Hon’ble Madras High Court sanctioned the Scheme of Arrangement for merger of Shriram Holdings (Madras)
Private Limited (SHMPL) with the Company( ‘the Scheme’) and the Scheme came into effect from November
05,2012 when the Company filed the Scheme with the Registrar of Companies, Tamil Nadu, Chennai. Pursuant
to the Scheme, the investment of SHMPL in the share capital of the Company viz. 93,371,512 fully paid-up Equity
shares of Rs.10/- each stood cancelled and the Company issued and allotted 93,872,380 new Equity shares of Rs.
10/- each fully paid-up to the shareholders of SHMPL. This resulted into increase of Rs. 50.09 lacs in the paid-up
capital of the Company with effect from November 05, 2012. The merger is effective from April 01, 2012 and the
effect of the same is considered in the financial statements for the year ended March 31, 2013.

(Rs. in lacs)
as at as at
march 31, 2014 march 31, 2013
4. reSerVeS and SurpLuS
Capital reserve
Balance as per last account 2,761.83 17.03
Add: On account of merger of Shriram Holdings (Madras) Private
Limited [Refer Note 34] - 2,744.80
Capital redemption reserve 5,388.35 5,388.35
Securities premium account
Add: Addition on ESOPs exercised 4.70 15.62
Add: Transferred from stock options outstanding 34.00 104.72
Closing balance 175,481.06 175,442.36
debenture redemption reserve
Less: Transfer to statement of Profit and Loss on account of
redemption (8,215.35) (23,461.58)
Less: Transfer to statement of Profit and Loss on account of revised
guidelines * - (14,309.77)
Stock option outstanding
Employee stock option outstanding 114.75 34.00
Less : Deferred employee compensation outstanding (104.51) (0.90)
Closing balance 10.24 33.10
other reserves
Statutory reserve pursuant to Section 45-iC of The rBi act, 1934
Closing balance 159,855.44 132,055.44
General reserve
Surplus in statement of Profit and Loss
Add: Profit for the current year 135,793.73 146,388.77
Add: Excess provision written back - tax on dividend - 0.41
Less: appropriations
Transfer to statutory reserve as per Section 45-IC of
The RBI Act, 1934 (27,800.00) (29,800.00)
Transfer to general reserve (13,000.00) (14,000.00)
Transfer to/from debenture redemption reserve (11,155.41) 21,956.09
Interim dividend [amount per share Rs.3.00
(March 31, 2013: Rs. 3.00)] (6,806.48) (6,825.68)
Tax on interim dividend (1,156.34) (1,107.30)
Proposed final dividend [amount per share Rs. 4.00
(March 31, 2013: Rs. 4.00)] (9,075.31) (9,074.56)
Tax on proposed dividend (1,542.35) (1,542.22)
Total appropriations (70,535.89) (40,393.67)
Net surplus statement of Profit and Loss 365,341.05 300,083.64
Total reserves and surplus 828,327.04 711,098.38
* As per General circular no 04/2013 dated February 11, 2013 issued by Ministry of Corporate Affairs, Debenture Redemption
Reserve required to maintained is revised to 25% from 50% , hence, the excess amount has been transferred back to the
statement of Profit and Loss for the year ended March 31, 2013.

145
(Rs. in lacs)
portion maturities* portion maturities*
5. LonG Term BorrowinGS
Subordinated debts (Unsecured) 411,673.31 50,441.72 327,509.63 54,267.15
redeemable non-convertible debentures
Secured 894,320.18 458,217.08 886,877.87 357,691.41
Less: Unamortised discount (145.65) (1,194.02) (2,120.34) (2,284.03)
894,174.53 457,023.06 884,757.53 355,407.38
Unsecured 2,150.00 79,580.00 81,730.00 47,380.00
Less: Unamortised discount - (110.08) (110.08) (784.49)
2,150.00 79,469.92 81,619.92 46,595.51
Term loans from banks
Unsecured 10,000.00 - 10,000.00 10,000.00
Secured 820,077.97 463,713.06 577,721.57 314,599.24
Fixed deposits (Unsecured) 192,410.45 38,011.76 68,220.02 66,418.28
Term loans from financial institutions / corporates
Secured 65,700.00 38,800.00 54,500.00 27,000.00
Loans and advances from related parties
Subordinated debts (Unsecured)
from Associate - - - 413.40
from Relative of Managing Director 1.10 - 0.30 -
Redeemable non-convertible debentures (Secured)
from Associate - - 3.60 2.40
from Managing Director 4.38 - - -
from Relative of Managing Director 14.47 1.39 4.88 2.21
Fixed deposits (Unsecured)
from Relative of Managing Director 2.09 - - 1.02
Total 2,396,208.30 1,127,460.91 2,004,337.45 874,706.59
*Amount disclosed under the Note 6 Other current liabilities


a) Subordinated debt - unsecured
i) Privately placed subordinated debts of Rs. 100,000/- each
Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
<12% <14% Total
redeemable at par
Over 60 months - 13,769.00 - - 13,769.00
48-60 months - - 4,541.00 - 4,541.00
24-36 months - 5,000.00 - - 5,000.00
12-24 months - 25,577.00 - - 25,577.00
Total - 44,346.00 4,541.00 - 48,887.00
Current maturity
upto 12 months - 15,000.00 5,500.00 - 20,500.00

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
<12% <14% Total
redeemable at par
Over 60 months - 13,769.00 4,541.00 - 18,310.00
36-48 months - 5,000.00 - - 5,000.00
24-36 months - 25,577.00 - - 25,577.00
12-24 months - 15,000.00 5,500.00 - 20,500.00
Total - 59,346.00 10,041.00 - 69,387.00
Current maturity
upto 12 months - - 10,510.00 - 10,510.00
ii) Privately placed subordinated debts of Rs. 1,000,000/- each

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% >= 14%
<12% <14% Total
redeemable at par
Over 60 months - 116,710.00 5,000.00 - 121,710.00
48-60 months 2,500.00 25,630.00 6,670.00 - 34,800.00
36-48 months - 25,500.00 - - 25,500.00
24-36 months - 5,000.00 2,500.00 - 7,500.00
12-24 months - 35,000.00 - - 35,000.00
Total 2,500.00 207,840.00 14,170.00 - 224,510.00

147
Current maturity
Current maturity is Rs. Nil as on March 31, 2014.

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% <12% <14% >= 14% Total
redeemable at par
Over 60 months - 100,890.00 11,670.00 - 112,560.00
48-60 months - 25,500.00 - - 25,500.00
36-48 months - 5,000.00 2,500.00 - 7,500.00
24-36 months - 35,000.00 - - 35,000.00
Total - 166,390.00 14,170.00 - 180,560.00
Current maturity
upto 12 months - 15,000.00 - - 15,000.00
iii) Privately placed subordinated debts of Rs. 1,000/- each

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% <12% <14% >= 14% Total
redeemable at par
Over 60 months - 65,695.12 - - 65,695.12
48-60 months 5.40 47,109.29 - - 47,114.69
36-48 months 1,481.88 6,589.06 - - 8,070.94
24-36 months 46.99 3,487.45 - - 3,534.44
12-24 months - 5,551.41 0.50 - 5,551.91
Total 1,534.27 128,432.33 0.50 - 129,967.10
Current maturity
upto 12 months - 8,038.37 21,903.35 - 29,941.72

Long term borrowing
(Rs. in lacs)
rate of interest
>=10% >=12%
<10% <12% <14% >= 14% Total
redeemable at par
Over 60 months 5.40 22,148.21 - - 22,153.61
48-60 months 1,481.88 6,589.06 - - 8,070.94
36-48 months 46.99 3,487.45 - - 3,534.44
24-36 months - 5,551.41 0.50 - 5,551.91
12-24 months - 8,038.37 21,903.35 - 29,941.72
Total 1,534.27 45,814.50 21,903.85 - 69,252.62
Current maturity
upto 12 months - 22,400.37 6,770.18 - 29,170.55

iv) Public issue of subordinated debt of Rs. 1,000/- each (2010)-quoted

Long term borrowing
(Rs. in lacs)
rate of as at march as at march redeemable
option detail interest 31, 2014 31, 2013 at par on
Option -IV 10.41% 91.00 91.00 1-Jun-17
10.81% 1,687.00 1,687.00 1-Mar-17
11.25% 3,746.08 3,746.08 1-Dec-16
Option -V 10.25% 110.30 110.30 1-Jun-17
10.75% 204.32 204.32 1-Jun-17
11.00% 2,471.61 2,471.61 1-Jun-17
Total 8,310.31 8,310.31
Current maturity
Current maturity is Rs. Nil as on March 31, 2014 and March 31, 2013
(Rs. in lacs)
Total Subordinated debts portion maturities portion maturities
Public issue (iv) 8,310.31 - 8,310.31 -
Total Subordinated debts 411,674.41 50,441.72 327,509.93 54,680.55
Less: issued to related parties 1.10 - 0.30 413.40
Total 411,673.31 50,441.72 327,509.63 54,267.15
B) non-convertible debenture (nCd)-Secured

i) Privately placed redeemable non-convertible debentures of Rs. 1,000/- each
Long term borrowing
(Rs. in lacs)
rate of interest
>= 10% >= 12% >= 14%
< 10% < 12% < 14% < 16% >= 16% Total *
48-60 months - 1,978.33 - - - 1,978.33
36-48 months - 9,385.75 939.52 - - 10,325.27
24-36 months 1.84 47,445.47 719.40 0.88 - 48,167.59
12-24 months 2,584.05 137,415.90 - 792.92 - 140,792.87
Total 2,585.89 196,225.45 1,658.92 793.80 - 201,264.06
Current maturity
upto 12 months 8,736.18 100,014.14 6.40 311.80 - 109,068.52

149

Long term borrowing
(Rs. in lacs)
rate of interest
>= 10% >= 12% >= 14%
< 10% < 12% < 14% < 16% >= 16% Total
48-60 months - 8,613.59 939.52 - - 9,553.11
36-48 months 1.84 6,534.46 719.88 0.88 - 7,257.06
24-36 months 1,669.55 136,832.48 - 792.92 - 139,294.95
12-24 months 3,637.90 100,192.44 6.40 311.80 - 104,148.54
Total 5,309.29 252,172.97 1,665.80 1,105.60 - 260,253.66
Current maturity
upto 12 months 46,737.79 29,109.31 1,582.89 282.32 0.48 77,712.79
nature of security
Secured by equitable mortgage of immovable property. Further secured by charge on plant and machinery,
furniture and other fixed assets of the Company, charge on Company’s hypothecation loans, other loans,
advances and investments of the Company subject to prior charges created or to be created in favour of the
Company’s bankers, financial institutions and others.
* Amount pertains to debentures issued prior to notification of the RBI Circular DNBD(PD) CC No.
330/03.10.001/2012-13 dated June 27, 2013.

(Rs. in lacs)
rate of interest
>= 10% < >= 12% < >= 14% <
Redeemable at par/premium < 10%^ 12% *^¥ 14% 16% >= 16% Total
Over 60 months 5,960.00 120,920.00 - - - 126,880.00
48-60 months 1,500.00 17,500.00 - - - 19,000.00
36-48 months^ 3,800.00 76,000.00 - - - 79,800.00
24-36 months*^¥ 7,750.00 123,805.00 - - - 131,555.00
12-24 months^ 6,600.00 43,800.00 - - - 50,400.00
Total 25,610.00 382,025.00 - - - 407,635.00
* Includes 2 NCDs of Rs. 625.00 lacs each partly paid to the extent of Rs. 50,000/-


(Rs. in lacs)

1 10.60% 625.00 12-Aug-16
Total 625.00
Current maturity (gross of unamortised discount on debenture of rs. 1,194.02 lacs )

(Rs. in lacs)
rate of interest
>= 10% < >= 12% < >= 14% <
Redeemable at par/premium < 10%^¥ 12%*^¥ 14% 16% >= 16% Total
upto 12 months*^¥ 67,110.00 246,365.00 - - - 313,475.00
* Includes 1 NCD of Rs. 625.00 lacs partly paid to the extent of Rs. 50,000/-.

(Rs. in lacs)

1 10.50% 625.00 13-Aug-14
2 10.00% 15,000.00 6-Aug-14
3 10.30% 20,000.00 20-Jul-14
4 9.35% 15,000.00 23-Jun-14
5 9.35% 5,000.00 23-Jun-14
6 9.75% 2,500.00 25-Apr-14
Total 58,125.00

Long term borrowing (gross of unamortised discount on debenture of rs. 2,120.34 lacs )
(Rs. in lacs)
rate of interest
>= 10% < >= 12% < >= 14% <
Redeemable at par/premium < 10%^ 12% *^¥ 14% 16% >= 16% Total
48-60 months *^ 3,800.00 76,000.00 - - - 79,800.00
36-48 months^¥ 750.00 38,125.00 - - - 38,875.00
24-36 months^ 47,100.00 72,580.00 - - - 119,680.00
12-24 months^¥ 39,010.00 168,585.00 - - - 207,595.00
Total 90,660.00 355,290.00 - - - 445,950.00
* Includes 2 NCDs of Rs. 625.00 lacs each partly paid to the extent of Rs. 50,000/-.

151

(Rs. in lacs)
1 10.60% 625.00 12-Aug-16
2 10.50% 625.00 13-Aug-14
3 10.30% 20,000.00 20-Jul-14
Total 21,250.00
Current maturity (gross of unamortised discount on debenture of rs. 2,284.03 lacs)

(Rs. in lacs)
rate of interest
>= 10% >= 12% >= 14%
redeemable at par (from the < 10%^¥ < 12%^ < 14% < 16% >= 16% Total
upto 12 months^¥ 19,510.00 187,110.00 31,000.00 - - 237,620.00

(Rs. in lacs)
1 10.30% 31,000.00 6-Jan-14
2 9.20% 30,000.00 24-Jun-13
3 9.00% 20,000.00 2-May-13
4 10.00% 15,000.00 25-Apr-13
5 9.75% 18,000.00 6-Aug-13
6 10.53% 20,000.00 27-Mar-14
Total 134,000.00
nature of Security
Secured Secured by specific assets covered under hypothecation loan and by way of exclusive charge and
iii) Privately placed redeemable non-convertible debenture of Rs. 3,000,000/- each

Current maturity
(Rs. in lacs)
rate of interest
>= 10% < >= 12% < >= 14% <
Redeemable at par/premium < 10% 12%* 14% 16% >= 16% Total
upto 12 months* - 1,600.00 - - - 1,600.00
*Partly paid to the extent of Rs. 100,000/-


Current maturity
Current maturity is Rs. Nil as on March 31, 2013
nature of security
iv) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each (2009)
Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 11.00% - 1,464.79 26-Aug-14 -
11.25% - 280.18 26-Aug-14 -
Option -II 11.25% - 1,096.49 26-Aug-14 -
11.50% - 378.43 26-Aug-14 -
Total - 3,219.89
Terms of repayment
Current maturity
(Rs. in lacs)
rate of as at march as at march redeemable put and Call
option detail interest 31, 2014 31, 2013 at par on option
Option -I 11.00% 1,484.62 - 26-Aug-14 -
11.25% 260.36 - 26-Aug-14 -
11.00% - 2,929.58 26-Aug-13 -
11.25% - 560.36 26-Aug-13 -
Option -II 11.25% 1,123.20 - 26-Aug-14 -
11.50% 351.72 - 26-Aug-14 -
11.25% - 2,192.99 26-Aug-13 -
11.50% - 756.85 26-Aug-13 -
Option -III 11.03% - 10,422.51 1-Oct-13 -
11.03% 7,508.65 - 26-Aug-14 -
Option -IV 11.00% - 2,274.12 1-Oct-13 -
11.00% 999.10 - 26-Aug-14 -
Total 11,727.64 19,136.42

153
nature of security
The funds raised from the public issue of 9,999,996 secured NCD aggregating to Rs. 99,999.96 lacs have been
utilised, after meeting the expenditure of and related to the public issue, for various financing activities of the
Company including lending, investments and repayment of borrowings.
The Company has bought back NCDs of Rs. 4,215.23 lacs on 12-March-2010 and Rs. 3,000.00 lacs on 27-
March-2012, Rs. 23,505.26 lacs on 28-March-2012 and as per the terms of the issue Rs. 46,923.16 lacs and Rs.
6,439.79 lacs were redeemed on 26-August-2012 and 26-August-2013 respectively.
Put options were exercised for option III and IV on 26-August-2013 and Rs. 2,913.86 lacs and Rs. 1,275.02 lacs
respectively were paid on 1-October-2013 in compliance with the terms of issue.
v) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2010)

Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 9.00% 1,424.68 - 1-Jun-15 -
9.50% 3,918.55 - 1-Jun-15 -
9.75% 1,160.60 - 1-Jun-15 -
10.00% 231.60 - 1-Jun-15 -
Option –II 9.50% 897.03 897.03 1-Jun-17 1-Jun-15
10.00% 832.20 832.20 1-Jun-17 1-Jun-15
10.25% 3,802.59 3,741.65 1-Jun-17 1-Jun-15
10.50% 722.54 783.48 1-Jun-17 1-Jun-15
Option –III 9.75% 808.45 808.45 1-Jun-15 -
10.25% 785.68 785.68 1-Jun-15 -
10.50% 1,756.76 1,717.73 1-Jun-15 -
10.75% 385.28 424.31 1-Jun-15 -
9.75% - 1,616.90 1-Jun-14 -
10.25% - 1,571.36 1-Jun-14 -
10.50% - 3,435.46 1-Jun-14 -
10.75% - 848.62 1-Jun-14 -
Total 16,725.96 17,462.87

Terms of repayment
Current maturity
(Rs. in lacs)
Option -I 9.00% - 3,398.67 1-Jun-15 1-Jun-13
9.50% - 10,495.95 1-Jun-15 1-Jun-13
9.75% - 1,496.49 1-Jun-15 1-Jun-13
10.00% - 363.36 1-Jun-15 1-Jun-13
Option –III 9.75% - 1,616.90 1-Jun-13 -
10.25% - 1,571.36 1-Jun-13 -
10.50% - 3,435.46 1-Jun-13 -
10.75% - 848.62 1-Jun-13 -
9.75% 1,616.90 - 1-Jun-14 -
10.25% 1,571.36 - 1-Jun-14 -
10.50% 3,513.52 - 1-Jun-14 -
10.75% 770.56 - 1-Jun-14 -
Total 7,472.34 23,226.81
nature of security
The Company has bought back NCDs of Rs. 1,000.00 lacs on 14-July-2011 and as per the terms of the issue
Rs. 7,472.34 lacs were redeemed on 1-June-2013.
Put options were exercised for option I on 1-June-2013 and Rs. 9,019.04 lacs were paid on 5-July-2013 in
compliance with the terms of issue.
vi) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2011)
Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 11.60% 53,470.83 53,470.83 11-Jul-16 12-Jul-15
11.35% 24,313.78 24,313.78 11-Jul-16 12-Jul-15
11.10% 7,340.36 7,340.36 11-Jul-16 12-Jul-15
Option –II 11.35% - 3,462.05 11-Jul-14 -
11.10% - 3,173.19 11-Jul-14 -
11.00% - 8,239.72 11-Jul-14 -
Total 85,124.97 99,999.93

155
Terms of repayment
Current maturity
(Rs. in lacs)
Option –II 11.35% 3,462.05 - 11-Jul-14 -
11.10% 3,173.19 - 11-Jul-14 -
11.00% 8,239.72 - 11-Jul-14 -
Total 14,874.96 -
nature of security
vii) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2012)

Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 11.15% 8,569.28 8,518.92 9-Aug-15 -
10.25% 14,894.88 14,945.24 9-Aug-15 -
Option –II 11.40% 13,423.10 14,236.98 9-Aug-17 -
10.50% 12,788.11 11,974.23 9-Aug-17 -
Option –III 11.15% 3,725.06 3,738.41 9-Aug-15 -
10.25% 161.04 147.69 9-Aug-15 -
Option –IV 11.40% 6,315.11 6,356.94 9-Aug-17 -
10.50% 123.42 81.59 9-Aug-17 -
Total 60,000.00 60,000.00
Current maturity
nature of security
The Company has utilised the entire sum of Rs. 60,000/- lacs raised from public issue (net off expenses) towards

viii) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2013)-1

Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 10.90% 12,829.17 - 1-Aug-16 -
9.65% 13,568.20 - 1-Aug-16 -
Option –II 11.15% 11,586.22 - 31-Jul-17 -
9.80% 3,356.06 - 31-Jul-17 -
11.15% 11,586.22 - 31-Jul-18 -
9.80% 3,356.07 - 31-Jul-18 -
Option –III 10.63% 5,797.30 - 31-Jul-18 -
9.40% 104.42 - 31-Jul-18 -
Option –IV 10.90% 6,075.57 - 1-Aug-16 -
9.65% 43.60 - 1-Aug-16 -
Option –V 11.15% 2,637.50 - 31-Jul-17 -
9.80% 5.61 - 31-Jul-17 -
11.15% 2,637.50 - 31-Jul-18 -
9.80% 5.60 - 31-Jul-18 -
Total 73,589.04 - -
Current maturity
nature of security
ix) Public issue of redeemable non-convertible debentures of Rs. 1,000/- each-(2013)-2

Terms of repayment
Long term borrowing
(Rs. in lacs)
Option -I 11.25% 7,762.63 - 24-Oct-16 -
10.75% 19,373.21 - 24-Oct-16 -
Option –II 11.50% 3,164.51 - 24-Oct-18 -
10.75% 7,489.01 - 24-Oct-18 -
Option –III 11.75% 4,734.26 - 24-Oct-20 -
10.75% 3,023.29 - 24-Oct-20 -
Option –IV 11.25% 2,253.65 - 24-Oct-16 -
10.75% 11.95 - 24-Oct-16 -
Option –V 11.50% 809.97 - 24-Oct-18 -
10.75% 5.00 - 24-Oct-18 -
Option –VI 11.75% 1,370.42 - 24-Oct-20 -
10.75% 2.10 - 24-Oct-20 -
Total 50,000.00 -

157

Current maturity
nature of security
(Rs. in lacs)
Total non-convertible non-current Current non-current Current
debentures - secured portion maturities portion maturities
Public issue (iv+v+vi+vii+viii+ix) 285,439.97 34,074.95 180,682.70 42,363.23
Total non-convertible debentures-
894,339.03 458,218.47 886,886.35 357,696.02
secured
Less: issued to related parties 18.85 1.39 8.48 4.61
Total 894,320.18 458,217.08 886,877.87 357,691.41
C. redeemable non-convertible debentures (nCd) - unsecured

Long term borrowing (gross of unamortised discount on debenture of rs. nil)
(Rs. in lacs)
rate of interest
redeemable at par <10%^ >=10% <12%^ Total

12-24 months^ - 2,150.00 2,150.00
Total - 2,150.00 2,150.00

Current maturity (gross of unamortised discount on debenture of rs. 110.08 lacs )
(Rs. in lacs)
rate of interest
redeemable at par <10%^¥ >=10% <12%^¥ Total
upto 12 months^¥ 22,750.00 56,830.00 79,580.00
Total 22,750.00 56,830.00 79,580.00


(Rs. in lacs)
1 10.07% 25,000.00 30-Apr-14
Total 25,000.00

Long term borrowing (gross of unamortised discount on debenture of rs. 110.08 lacs )
(Rs. in lacs)
rate of interest
Redeemable at par/premium <10%^ >=10% <12%¥ Total
24-36 months^ - 2,150.00 2,150.00
12-24 months^¥ 22,750.00 56,830.00 79,580.00
Total 22,750.00 58,980.00 81,730.00

(Rs. in lacs)
1 10.07% 25,000.00 1-May-13
Total 25,000.00

Current maturity (gross of unamortised discount on debenture of rs. 784.49 lacs)
(Rs. in lacs)
rate of interest
<10%^¥ >=10% <12%^ Total
Redeemable at par/premium
upto 12 months^¥ 22,280.00 25,100.00 47,380.00
Total 22,280.00 25,100.00 47,380.00

(Rs. in lacs)
1 9.59% 20,000.00 24-Mar-14
Total 20,000.00

159
d. Term loan from bank- unsecured

Terms of repayment
(Rs. in lacs)
48-60 months 14.00% Bullet 10,000.00 -
Total 10,000.00 -

Terms of repayment
(Rs. in lacs)
48-60 months 14.00% Bullet 10,000.00 -
Total 10,000.00 10,000.00
e. Term loans from Banks -Secured

Terms of repayment
Long term borrowing
(Rs. in lacs)
10.50% to 10 to 48 installments of monthly,
48-60 months 133,988.69 34,500.00
11.20% quarterly and half yearly frequency
5 to 48 installments of monthly,
10.35% to
36-48 months quarterly, half yearly and yearly 322,582.86 121,668.67
11.25%
frequency
10.00% to
24-36 months monthly, quarterly, half yearly and 280,099.49 150,130.96
11.75%
yearly frequency
12-24 months (* refer 9.00% to
security details) 12.25%
frequency
9.75% to 1 to 48 installments of bullet,
Upto 12 months - 83,044.09
12.75% monthly and quarterly frequency
Total 820,077.97 463,713.06
(Rs. in lacs)
nature of Security as at march 31, 2014
1,283,788.12
Total 1,283,791.03


Terms of repayment
Long term borrowing
(Rs. in lacs)
48-60 months 10.35% to 5 to 20 installments of quarterly and 138,999.95 36,000.00
10.75% yearly frequency
36-48 months 1 to 60 installments of bullet, 235,122.58 81,607.14
10.35% to
monthly, quarterly and half yearly
11.75%
frequency
24-36 months (* refer 1 to 60 installments of bullet, 124,187.29 45,435.99
9.00% to
security details) monthly, quarterly and half yearly
12.50%
frequency
12-24 months 1 to 48 installments of bullet, 79,411.75 35,701.00
9.50% to
monthly, quarterly, half yearly and
13.00%
yearly frequency
Upto 12 months 1 to 48 installments of bullet, - 115,855.11
9.00% to
monthly, quarterly, half yearly and
13.75%
yearly frequency
Total 577,721.57 314,599.24
(Rs. in lacs)
nature of Security as at march 31, 2013
892,315.63
Total 892,320.81
F. Fixed deposits- Unsecured -Refer Note 28

Long term borrowing
(Rs. in lacs)
rate of interest

48-60 months - 9,075.19 9,075.19
36-48 months - 5,968.13 5,968.13
24-36 months 0.02 134,125.09 134,125.11
12-24 months 14,325.65 28,918.46 43,244.11
Total 14,325.67 178,086.87 192,412.54
Current maturity
(Rs. in lacs)
rate of interest

upto 12 months 19,502.62 18,509.14 38,011.76

161

Long term borrowing
(Rs. in lacs)
rate of interest

48-60 months - 4,424.72 4,424.72
36-48 months - 5,711.40 5,711.40
24-36 months 7,678.53 28,948.08 36,626.61
12-24 months 2,684.84 18,772.45 21,457.29
Total 10,363.37 57,856.65 68,220.02
Current maturity
(Rs. in lacs)
rate of interest
upto 12 months 55,005.29 11,414.01 66,419.30
(Rs. in lacs)
Total Fixed deposits portion maturities portion maturities
Total Fixed deposits 192,412.54 38,011.76 68,220.02 66,419.30
Less: issued to related parties 2.09 - - 1.02
Total 192,410.45 38,011.76 68,220.02 66,418.28
G. Term Loan from financial institution/corporates - Secured

Long term borrowing
Terms of repayment
(Rs. in lacs)
11.10% 27,500.00 10,000.00
frequency
10.50% 33,200.00 16,800.00
frequency
11.00% 5,000.00 12,000.00
frequency
Total 65,700.00 38,800.00
nature of Security
Secured by an exclusive charge by way of hypothecation of specific movable assets being fixed/current assets
relating to hypothecation loans.


Long term borrowing
Terms of repayment
(Rs. in lacs)
11.10% 37,500.00 10,000.00
frequency
11.00% 17,000.00 12,000.00
frequency
upto 12 months 9.25% Bullet - 5,000.00
Total 54,500.00 27,000.00
nature of Security
(Rs. in lacs)
Total Long-term borrowings portion maturities portion maturities
Secured borrowings 1,779,971.35 959,537.51 1,516,987.58 697,011.23
Unsecured borrowings 616,236.95 168,033.48 487,349.87 177,695.36
Total Long-term borrowings 2,396,208.30 1,127,570.99 2,004,337.45 874,706.59

163
(Rs. in lacs)
6. oTher LiaBiLiTieS
Creditors other than Micro,Small and Medium
Enterprises
- for fixed assets - 1.55 - 14.18
Current maturities of long term debts [Refer Note 5] - 1,127,460.91 - 874,706.59
Interest accrued but not due on loans 48,907.46 103,501.11 57,765.97 83,952.03
Application money on redeemable non convertible
- - 2,109.76 -
debentures
Application money on subordinated debts - - 311.59 -
Investor Education and Protection Fund shall be
credited by the following amounts (as and when due)
- Unclaimed dividend - 773.97 - 629.22
- Unclaimed matured deposits and interest accrued
- 4,496.26 - 1,246.86
thereon
- Unclaimed matured debentures and interest accrued
- 6,324.62 - 5,402.65
thereon
- Unclaimed matured subordinate debts and interest
- 6,295.16 - 3,752.38
accrued thereon
Temporary credit balance in bank accounts - 4,103.99 - 75,467.00
Tax deducted at source - 1,783.12 - 1,544.59
Service tax payable - 71.64 - 31.43
Statutory dues pertaining to employees - 389.07 - 322.04
Value Added Tax - 412.34 - 412.34
Works contract tax payable - 1.41 - -
Unrealised gain on securitisation* 35,842.13 78,270.16 57,403.45 130,594.91
Retention and others 14,059.78 - 12,788.89 -
Total 98,809.37 1,333,885.31 130,379.66 1,178,076.22
* Includes realised gain on premium structure securitization / assignment deals amounting to Rs. 155.31 lacs (March 31,
2013: Rs. 3,455.73 lacs) - Also refer note 2.1 (i) (iv).
(Rs. in lacs)
7. proViSionS
For employee benefits
For gratuity - 54.91 1,782.83 145.10
For leave encashment and availment - 1,736.79 - 1,525.69
For others
For non-performing assets 117,444.39 - 81,629.86 -
For standard assets [ Refer note (e) of note 2.1] 5,485.89 4,390.41 4,902.01 3,614.80
For service tax- contested - 8,793.99 - 8,778.18
For credit loss on securitisation 7,370.36 - 27,597.37 -
For income tax - 4,566.31 - 4,543.16
[net of advance tax Rs. 167,466.56 lacs (March 31,
2013: Rs. 167,208.27 lacs)]
Proposed dividend - 9,075.31 - 9,074.56
Corporate dividend tax - 1,542.35 - 1,542.22
Total 130,300.64 30,160.07 115,912.07 29,223.71

(Rs. in lacs)
as at as at
march 31, 2014 march 31, 2013
8. ShorT Term BorrowinGS
Secured
Redeemable non convertible debentures 43,400.00 74,750.00
Term loans
i) Fom banks 194,799.86 183,800.00
ii) From financial institutions / corporates 10,000.00 -
Unsecured Redeemable debenture - 25,000.00
Loans repayable on demand (Secured)
Cash credit 51,101.46 124,525.36
Working capital demand loan from banks 22,500.00 14,452.00
unsecured
Term loan from banks 2,200.00 -
Commercial papers from other than banks 16,000.00 37,500.00
Less: unamortized discount (623.41) (446.26)
15,376.59 37,053.74
Total 339,377.91 459,581.10
a. non-convertible debenture (nCd)-Secured
i) Privately placed redeemable non-convertible debenture of Rs. 1,000,000/- each
(Rs. in lacs)
rate of interest
>=10% <12%¥ Total
upto 12 months 42,400.00 42,400.00

(Rs. in lacs)
1 10.95% 30,000.00 26-Sep-14
2 10.72% 7,500.00 24-Sep-14
3 10.72% 2,500.00 24-Sep-14
Total 40,000.00

(Rs. in lacs)
rate of interest
< 10% Total
upto 12 months 74,750.00 74,750.00
nature of Security

165

(Rs. in lacs)
rate of interest
>=10% <12%*¥ Total
upto 12 months 1,000.00 1,000.00
*Partly paid to the extent of Rs. 1,00,000/-

(Rs. in lacs)
1 10.50% 1,000.00 19-Aug-14
Total 1,000.00

NCD outstanding is Rs. Nil
nature of Security
b. Term loans from bank -Secured

Terms of repayment
(Rs. in lacs)
Tenure
Total 194,799.86
Terms of repayment
(Rs. in lacs)
Tenure
upto 12 months 9.90 % to 10.35% Bullet 183,800.00
Total 183,800.00

c. Term loans from financial institution -Secured

Terms of repayment
(Rs. in lacs)
Tenure
Total 10,000.00
Terms of repayment
d. redeemable non-convertible debentures (nCd)- unsecured

Terms of repayment
Redeemable non-convertible debentures (NCD)- Unsecured outstanding is Rs. Nil as on March 31, 2014.
(Rs. in lacs)
rate of interest
redeemable at par within < 10% >=10% <12% Total

Upto 12 months 25,000.00 - 25,000.00
Total 25,000.00 - 25,000.00
(Rs. in lacs)
e. Cash credit from bank as at march 31, 2014 as at march 31, 2013
Secured by hypothecation of specific assets covered under
51,101.46 124,525.36
hypothecation loan agreements
Total 51,101.46 124,525.36
f. working capital demand loan -Secured

Terms of repayment
(Rs. in lacs)
Tenure rate of repayment as at march

(from the date of the Balance Sheet) interest details 31, 2014
9.75 % to
Upto 12 months Bullet 22,500.00
11.50%
Total 22,500.00

167
Terms of repayment
(Rs. in lacs)
Tenure
upto 12 months 9.75 % to 11.50% Bullet 14,452.00
Total 14,452.00
g. Term loans from bank -unsecured

Terms of repayment
(Rs. in lacs)
Tenure
Total 2,200.00
Terms of repayment
h. Commercial paper
(Rs. in lacs)
Tenure
Total 16,000.00
note
(Rs. in lacs)
Tenure
Total 37,500.00
note
2) The Company has bought back commercial paper of Rs. 25,000.00 lacs on February 11, 2013.
(Rs. in lacs)
Total Short-term borrowings as at march 31, 2014 as at march 31, 2013
Secured borrowings 321,801.32 397,527.36
Unsecured borrowings 17,576.59 62,053.74
Total Short-term borrowings 339,377.91 459,581.10

ConSoLidaTed aCCounTS
(Rs. in lacs)
Tangible fixed assets intangible assets
Furniture Leasehold Total Total
Land - plant and Office and improve- tangible Trade- Computer intangible
particulars feehold Buildings equipment equipment fixtures Vehicles ment fixed assets marks software assets
9.
Fixed aSSeTS
Gross block
as at april 1, 2012 10.69 526.03 4,297.69 192.22 1,346.89 146.43 5,041.36 11,561.31 4.64 1,079.91 1,084.55
Additions 0.58 - 2,308.57 49.61 424.41 - 1,328.96 4,112.13 - 204.99 204.99
Deletions - - 363.53 17.55 86.00 60.52 385.10 912.70 - - -
Adjustment - - - - - - - - - - -

as at march 31, 2013 11.27 526.03 6,242.73 224.28 1,685.30 85.91 5,985.22 14,760.74 4.64 1,284.90 1,289.54
Additions 4,449.52 - 2,923.06 92.82 753.08 0.10 3,433.08 11,651.66 - 95.77 95.77
Deletions - 138.48 276.77 12.77 116.28 4.22 481.83 1,030.35 - - -
Adjustment - 254.20 54.19 - 58.33 - (734.89) (368.17) - - -
as at march 31, 2014 4,460.79 641.75 8,943.21 304.33 2,380.43 81.79 8,201.58 25,013.88 4.64 1,380.67 1,385.31
depreciation
as at april 1, 2012 - 119.26 2,293.10 100.86 694.90 93.33 3,252.10 6,553.55 0.74 725.38 726.12
Charge for the year - 8.58 832.45 27.14 308.79 6.42 822.52 2,005.91 0.46 262.56 263.02
Deletions - - 270.17 8.45 63.22 30.62 348.10 720.56 - - -
Adjustment - - - - - - - - - - -
as at march 31, 2013 - 127.84 2,855.38 119.55 940.47 69.13 3,726.52 7,838.89 1.20 987.93 989.13
Charge for the year - 8.82 1,226.66 44.02 522.84 5.28 1,288.80 3,096.42 0.46 179.20 179.66
Deletions - 41.48 219.09 8.29 85.41 4.01 461.55 819.83 - - -
Adjustment - - - - - - (368.17) (368.17) - - -

as at march 31, 2014 - 95.18 3,862.95 155.28 1,377.90 70.40 4,185.60 9,747.31 1.66 1,167.13 1,168.79
net block
as at march 31, 2013 11.27 398.19 3,387.35 104.73 744.83 16.78 2,258.70 6,921.85 3.44 296.98 300.42
as at march 31, 2014 4,460.79 546.57 5,080.26 149.05 1,002.53 11.39 4,015.98 15,266.57 2.98 213.54 216.52
depreCiaTion and amorTiSaTion

(Rs. in lacs)
year ended
march 31, 2014 march 31, 2013
on tangible assets 3,096.42 2,005.90
on intangible assets 179.66 263.02
169
on invesment property 2.33 2.32

Total 3,278.41 2,271.24
10. non-CurrenT inVeSTmenTS

(Rs. in lacs)
as at as at
march 31, march 31,
non-current investments 2014 2013
1 Investment property (net of depreciation) 197.47 199.78
2 Non trade :
a. a) Investment in Equity shares-quoted - 374.34
a. b) Investment in Equity shares-unquoted 65.00 207.50
a. c) Investment in Preference shares - 100.00
B. Investment in Government securities 33,089.48 23,778.57
C. Investment in Subordinated debts 5,000.00 5,000.00
d. Investment in Venture capital fund 1,453.04 873.15
Less : Aggregate provision for diminution in value of investments (25.00) (167.50)
Total 39,779.99 30,365.84
(Rs. in lacs)
particulars (rs.) 2014 2014 2013 2013
1. investment property
(at cost less accumulated depreciation)
Cost of land and building given on
211.66 211.66
operating lease
Less: accumulated depreciation 14.19 11.88
net Block 197.47 199.78
2. non trade
(valued at cost unless stated otherwise)
a. Shares : Fully paid up
a) Quoted - Equity shares
Shriram Asset Management
10 - - 2,400,000 240.00
Company Limited (40% Share) #
Add: Share of post acquisition profit - 134.34
(including Rs. Nil of Goodwill net
of Capital Reserve arising on
consolidation) (Sold during the year)
- 374.34
b) Unquoted - Equity shares
investment in other companies
State Industrial Investment
10 50,000 40.00 50,000 40.00
Corporation of Maharashtra Limited
Credential Finance Limited 10 25,000 - 25,000 -
temporary diminution in value of
Rs. 25.00 lacs (March 31, 2013:
Rs. 25.00 lacs) ]

(Rs. in lacs)
(rs.) 2014 2014 2013 2013
10. non-CurrenT inVeSTmenTS (Contd.)
Ashley Transport Services Limited 100 - - 225,000 -
(Company dissolved during the year)
temporary diminution in value of Rs.
Nil (March 31, 2013: Rs. 142.50 lacs)]
c) Unquoted - Preference shares
Shriram Asset Management 100 - - 100,000 100.00
Company Limited (sold 100,000
shares of Rs. 100/- each during
the year)
B. Quoted-Government Securities
6.13% GOI Loan 2028 100 176,000 177.47 176,000 177.57
6.35% GOI Loan 2020 100 2,500,000 2,385.64 2,500,000 2,365.79
6.49% GOI Loan 2015 100 500,000 495.73 500,000 492.13
6.90% GOI Loan 2019 100 5,000,000 4,793.75 5,000,000 4,754.74
7.02% GOI Loan 2016 100 400,000 397.02 400,000 395.77
7.80% GOI Loan 2020 100 2,500,000 2,495.30 2,500,000 2,494.53
8.13% GOI Loan 2022 100 2,500,000 2,502.31 2,500,000 2,502.58
8.24% GOI Loan 2027 100 500,000 497.28 500,000 497.06
8.26% GOI Loan 2027 100 2,500,000 2,454.90 2,500,000 2,484.32
8.26% GOI Loan 2027 100 5,000,000 4,909.80 5,000,000 4,870.24
8.97% GOI Loan 2030 100 2,500,000 2,668.33 2,500,000 2,743.83
8.33% GOI Loan 2026
(Purchased during the year) 100 2,500,000 2,331.34 - -
8.28% GOI loan 2027 100 5,000,000 6,980.61 - -
(Purchased during the year)
Unquoted - Investment in
C.
Subordinate debts
Yes Bank Limited 1,000,000 500 5,000.00 500 5,000.00
d. Unquoted- Venture Capital Fund
ICICI Investment
10,000 14,530 1,453.04 8,731 873.15
Total 39,779.99 30,365.84
aggregate Value of Quoted
investments
Market Value 29,430.21 24,681.26
Aggregate Value of Unquoted
investments
aggregate provision for diminution in
25.00 167.50
value of investments
# These shares are subject to restrictive covenants of regulatory authority.

171
(Rs. in lacs)
as at as at
march 31, 2014 march 31, 2013
11. deFerred Tax aSSeTS (neT)
Deferred tax asset
Fixed asset: Impact of difference between tax depreciation and
586.52 431.95
depreciation /amortization charged for financial reporting period
Impact of expenditure charged to the statement of profit and loss in
4,552.89 4,215.85
the current year but allowed for tax purpose on payment basis
Provision for securitization 18,240.09 22,110.15
Provision for standard assets 3,356.95 2,763.28
Gross deferred tax assets (A) 26,736.45 29,521.23
Deferred tax liability
Debenture Issue Expenses 1,180.65 808.70
Gross deferred tax liability (B) 1,180.65 808.70
Net deferred tax assets (A-B) 25,555.80 28,712.53
(Rs. in lacs)
12. LoanS and adVanCeS
Capital advances 151.66 - 673.94 -
Security deposits 3,258.46 852.07 2,474.92 1,169.21
Secured, considered good
Hypothecation loans 2,118,667.78 1,604,774.07 1,914,534.01 1,335,626.04
Retained interest on securitisation 41,178.54 40,768.00 31,172.67 21,172.94
Other loans 10.19 30.05 82.80 39.97
Unsecured loans^ 12,928.42 102,133.39 9,682.50 84,415.21
Advance - hypothecation loans 1,007.45 - 1,873.60 -
Debtors on securitisation [net of deliquency provision
Rs. 46,292.75 lacs (March 31, 2013: Rs. 37,541.27
lacs)] - 34.09 - 1,189.05
Securtisation deferred consideration receivable 37,139.46 79,937.37 54,636.13 130,077.34
doubtful
Secured Hypothecation loans 143,709.36 - 98,576.42 -
Other loans 350.64 - 615.32 -
Unsecured loan 5,452.50 - 3,175.33 -
Advances recoverable in cash or in kind or for value
36.14 - 36.14 -
to be received

(Rs. in lacs)
12. LoanS and adVanCeS (Contd.)
other loans and advances - unsecured,
considered good
Advances recoverable in cash or in kind or for value 3,369.51 9,528.73 1,100.82 3,303.75
to be received
Service tax credit (input) receivable - 2,319.19 - 770.06
MAT credit entitlement - - 188.29 -
Prepaid expenses 155.26 854.57 362.13 928.77
Advance income tax (net of provision for taxation)
9,548.62 - 5,672.26 -
[Refer Note 34]
[net of provision for income tax Rs. 247,798.82 lacs
(March 31, 2013: Rs. 189,890.77 lacs)]
Total 2,376,963.99 1,841,231.53 2,124,857.28 1,578,692.34
# Includes current maturities of long term loans and advances

^ Advance given to the company in which a director is interested Rs. Nil (March 31, 2013: Rs. 136.29 lacs)
(Rs. in lacs)
13. oTher aSSeTS
Fixed deposits with banks (Note 16) 0.50 - 1.00 -
Margin money deposit with banks (Note 16) 6,374.05 - 14,217.60 -
Interest accrued on investments - 1,029.29 - 1,148.20
Interest accrued on fixed deposits with banks 372.08 5,302.78 505.59 5,323.77
Plan Asset - gratuity - 0.13 - -
Public issue expenses for non convertible debentures 1,957.42 1,516.10 1,401.11 1,091.46
Issue expenses for equity shares 738.45 152.77 891.22 152.78
Total 9,442.50 8,001.07 17,016.52 7,716.21
(Rs. in lacs)
as at as at
march 31, march 31,
2014 2013
14. CurrenT inVeSTmenTS
1 Investment in Government securities - 85.03
2 a) Investment in Certificate of deposit with banks 203,561.74 297,574.60
2 b) Investment in Mutual fund 201.40 -
Less : Aggregate provision for diminution in value of investments (16.81) -
Total 203,746.33 297,659.63

173
(Rs. in lacs)
particulars (rs.) 2014 2014 2013 2013
Current portion of long term investments
1. (valued at cost unless otherwise mentioned)
a) Quoted: Government Securities
[Refer note 28]
12.40% GOI Loan 2013 100 - - 85,000 85.03
This security is redeemable on August 20,
2013 at par
2. Current investments
(at lower of cost and fair value)
a) Unquoted: Investment in Certificate of
deposit with Banks
Allahabad Bank 20,000 19,587.42 - -
Andhra Bank 30,000 29,458.76 20,000 18,436.20
Axis Bank - - 30,000 29,229.36
Bank of Baroda 2,500 2,452.54 2,500 2,309.57
Bank of India - - 2,500 2,442.49
Canara Bank - - 20,000 19,584.48
Central Bank of India 10,000 9,896.90 20,000 19,564.42
Federal Bank Limited - - 10,000 9,837.48
HDFC Bank Limited - - 5,000 4,900.71
ICICI Bank Limited - - 20,000 19,708.42
Industrial Development Bank of India Limited 25,000 24,556.87 20,000 19,583.62
Indian Bank - - 20,000 19,205.82
Indusind Bank Limited 10,000 9,797.95 20,000 19,563.69
Karur Vysya Bank - - 20,000 19,590.16
Punjab National Bank - - 11,000 10,818.19
South Indian Bank 30,000 29,330.27 - -
State Bank of Bikaner & Jaipur - - 5,000 4,913.45
Syndicate Bank 20,000 19,670.98 20,000 19,130.18
UCO Bank 30,000 29,301.33 - -
Union Bank of India 20,000 19,670.98 - -
United Bank of India - - 40,000 39,135.10
Vijaya Bank 10,000 9,820.93 20,000 19,621.26
b) Quoted: investment in mutual Fund
Shriram Equity & Debt Opportunities Fund
10 2,000,000 200.00 - -
Direct
DWS Insta Cash Plus Fund - Direct Plan
10 840.33 1.40 - -
- Growth
Total 203,746.33 297,659.63

(Rs. in lacs)
particulars (rs.) 2014 2014 2013 2013
Cost of acquisition 201.40 85.03
Market Value 213.32 87.31
Aggregate Value of Unquoted Investments
aggregate provision for diminution 16.81 -
in value of investments
(Rs. in lacs)
as at as at
march 31, march 31,
2014 2013
15. Trade reCeiVaBLeS
Outstanding for a period exceeding six months from the date they are due for payment - -
Other receivables 190.67 0.49
Total 190.67 0.49
(Rs. in lacs)
16. CaSh and Bank BaLanCeS
Cash and cash equivalents
i) Balances with scheduled banks in:
Current accounts - 185,452.85 - 377,159.68
Unpaid dividend accounts - 773.96 - 629.22
Deposits with original maturity of less than three
- 260,596.00 - 57,537.00
months
ii) Cheques on hand - 4,197.25 - 5,419.28
iii) Cash on hand - 13,608.57 - 9,488.22
iv) Call Money (CBLO) - 69,882.53 - -
- 534,511.16 - 450,233.40
other bank balances
Deposits with original maturity for more than
0.50 290.80 - 291.30
12 months
Deposits with original maturity for more than
- 31,878.40 - 24,735.24
3 months but less than 12 months
Margin money deposit#@ 6,374.05 145,163.32 14,218.60 159,912.75
6,374.55 177,332.52 14,218.60 184,939.29
amount disclosed under non-current assets
(6,374.55) (14,218.60)
[Refer Note 13]
Total - 711,843.68 - 635,172.69
@ Includes deposits of Rs. 1.64 lacs (March 31, 2013: Rs. 1.00 lacs) pledged with VAT authorities.
# Includes deposits of Rs. 139,935.51 lacs (March 31, 2013 : Rs. 151,893.09 lacs) pledged with Banks as margin for credit
enchancement, Rs. 11,194.65 lacs (March 31, 2013: Rs. 21,995.05 lacs) as margin for guarantees and Rs. 405.57 lacs
(March 31, 2013: Rs. 242.22 lacs) pledged as lien against loans taken.

175
(Rs. in lacs)
march 31, 2014 march 31, 2013
17. reVenue From operaTionS
interest income on
- loan portfolio and related charges 636,330.98 470,994.67
- securitisation and direct assignment 85,372.36 175,165.21
- margin money on securitisation/ assignments 13,354.78 12,819.22
- pass through certificates 48,304.69 12,066.44
- deposits with banks 6,421.88 1,576.53
- long- term investments 2,725.87 2,201.92
- current investments 2,864.01 3,008.35
Other financial services
Reversal of provision for credit loss on securitisation 11,475.54 -
Income from portfolio management services 85.67 269.82
Income from commission services 3,617.42 1,511.05
Bad debt recovery 490.57 576.94
Dividend on long- term investments 0.50 0.50
Dividend on current investments - 120.12
Profit on sale of current investments (net) 29,363.67 13,773.52
Profit on sale of investment in associate 0.06 -
Sales of used commercial vehicles - 84.17

Facilitation fees 7,193.92 7,274.41
Total 847,601.92 701,442.87
(Rs. in lacs)

march 31, 2014 march 31, 2013
18. oTher inCome
Income from operating lease 10.14 9.94
Profit on sale of assets (net) 308.23 0.14
Miscellaneous income 98.40 142.85
Total 416.77 152.93
(Rs. in lacs)
march 31, 2014 march 31, 2013
19. empLoyee BeneFiT expenSeS
Salaries, other allowances and bonus 43,442.05 41,096.68
Gratuity expenses 232.72 600.93
Contribution to provident and other funds 2,268.13 1,845.57
Expense on Employee Stock Option Scheme** 11.14 (86.69)
Staff welfare expenses 1,205.76 860.23
Total 47,159.80 44,316.72
** Negative amount in the year ended March 31, 2013 owing to forfeiture of options granted to employees in the past along
with option lapse on account of employee resignation against which ESOP expense were duly booked in the past over the
vesting period of such options.

(Rs. in lacs)
march 31, 2014 march 31, 2013
20. FinanCe CoST
Interest expense
Debentures 164,929.90 122,412.43
Subordinated debts 52,049.20 43,798.91
Fixed deposits 18,404.23 13,520.29
Loans from banks 142,940.52 89,140.89
Loans from institutions and others 9,784.34 5,636.78
Commercial paper 2,434.30 8,455.85
other borrowing costs
Professional charges - resource mobilisation 9,661.93 5,632.00
Processing charges on loans 1,262.40 1,391.29
Brokerage 12,270.88 9,997.32
Sourcing fees 716.59 620.39
Amortisation of NCD Public issue expenses 1,467.06 1,578.01
Total 420,220.91 305,894.51
(Rs. in lacs)
march 31, 2014 march 31, 2013
21. oTher expenSeS
Rent 7,414.97 6,565.64
Lease Rent for Parking Yards 128.35 428.19
Electricity expenses 996.96 768.99
DSA Commission 200.44 318.85
Repairs & maintenance
- Buildings 11.41 15.36
- Others 1,077.82 1,036.52
Rates & taxes 190.80 434.95
Printing & stationery 1,551.89 1,927.87
Travelling & conveyance 11,780.87 3,869.04
Advertisement 175.92 593.77
Registration and Filing Fees 2.71 1.28
Brokerage 1.92 -
Business Promotion 2,713.03 1,006.51
Buyer and seller Facilitation Expense 884.07 502.31
Royalty 2,561.58 2,253.37
Directors' sitting fees 12.37 8.71
Insurance 54.72 23.33
Communication expenses 4,315.33 2,734.07
Payment to auditor [ Refer Note 33]
As Auditor:
- Audit fees 145.57 145.42
- Tax audit fees 9.90 10.21
- Out of pocket 5.78 7.50
In any other manner:
- Certification 4.59 1.79

177
(Rs. in lacs)
march 31, 2014 march 31, 2013
21. oTher expenSeS (Contd.)
Bank charges 3,091.07 3,311.52
Processing charges on securitization 5.31 5.31
Professional charges on securitization 5,709.05 6,656.22
Legal & professional charges 3,022.27 2,286.65
Provision for non moving inventory - (3.23)
Donations 477.25 499.62
Loss on sale of fixed assets (net) - 47.11
Issue expenses for equity shares 152.78 152.78
Data center management service 146.53 111.81
Security charges 305.15 184.86
Service charges paid 3,937.95 3,517.01
Miscellaneous expenses 7,904.03 6,101.48
Total 58,992.39 45,524.82
(Rs. in lacs)
march 31, 2014 march 31, 2013
22. proViSionS & wriTe oFFS
Provision for non performing assets 34,890.07 19,509.69
Provision for standard assets [ Refer note (e) of note 2.1] 1,359.49 2,546.91
Provision for diminution in value of investments* 16.81 (178.66)
Bad debts written off 85,054.49 47,728.59
Total 121,320.86 87,223.96
* Negative amount in the year ended March 31, 2013 owing to provision for diminution in value of investments booked on
current investments during previous year ended March 31, 2012 written back on sale in the year ended March 31, 2013.

23. earninGS per Share
Net Profit after tax as per statement of profit and loss
135,793.73 146,342.79
(Rs. in lacs) (A)
Weighted average number of equity shares for calculating
2,268.76 2,268.32
Basic EPS (in lacs) (B)
2,268.76 2,268.50
Diluted EPS (in lacs) (C)
Basic earnings per equity share (in Rupees) (Face value of
59.85 64.52
Rs. 10/- per share) (A) / (B)
Diluted earnings per equity share (in Rupees) (Face value of
59.85 64.51
Rs. 10/- per share) (A) / (C)

2,268.76 2,268.32
Basic EPS (in lacs)
Add : Equity shares for no consideration arising on grant of
- 0.18
stock options under ESOP (in lacs)
Weighted average number of equity shares in calculating
2,268.76 2,268.50
Diluted EPS (in lacs)

24. GraTuiTy and oTher poST-empLoymenT BeneFiT pLanS
The Group has defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible
for a gratuity on separation at 15 days basic salary (last drawn salary) for each completed year of service. The scheme is
funded with an insurance company in the form of qualifying insurance policy.
During the year the Group has funded Rs. 2,022.67 lacs for gratuity being defined benefit obligation outstanding as on
September 30, 2013.
Consequent to the adoption of revised AS 15 ‘Employee Benefits’ issued under Companies Accounting Standard Rules,
2006, as amended, the following disclosures have been made as required by the standard:
Statement of Profit and Loss
Net employee benefit expense (recognized in the Statement of profit and loss)
(Rs. in lacs)
Gratuity
Interest cost on benefit obligation 154.23 124.19
Expected return on plan assets Nil Not applicable
Net actuarial (gain) / loss recognised in the year (270.36) 187.84
Past service cost Nil Nil
Net benefit expense 232.71 600.93
Actual return on plan assets 51.10 Not applicable
Balance sheet
Benefit asset/(liability)
(Rs. in lacs)
Gratuity
Present value of defined benefit obligation 2,128.54 1,927.94
Fair value of plan assets 2,073.77 Not applicable
Surplus/(deficit) (54.77) (1,927.94)
Less: Unrecognised past service cost Nil Nil
Plan asset / (liability)* (54.77) (1,927.94)
* disclosed under note 7- provisions and note 13 - other assets

Changes in the present value of the defined benefit obligation are as follows:
(Rs. in lacs)
Gratuity
Opening defined benefit obligation 1,927.94 1,460.99
Interest cost 154.23 124.18
Benefits paid (83.22) (133.97)
Actuarial (gains) / losses on obligation (219.25) 187.84
Closing defined benefit obligation 2,128.54 1,927.94

179
Changes in the fair value of the plan assets are as follows:

(Rs. in lacs)
Gratuity
Opening fair value of plan assets Nil Not applicable
Expected return Nil Not applicable
Contributions by employer 2,022.67 Not applicable
Benefits paid Nil Not applicable
Actuarial gains /( losses) 51.10 Not applicable
Closing fair value of plan assets 2,073.77 not applicable
The Group did not contribute any amount to gratuity in 2012-13 as the scheme was unfunded.
The Group expects to contribute Rs. 407.63 lacs to gratuity in the next year.
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
Gratuity
% %
Investments with insurer 100 Not applicable
The principal assumptions used in determining gratuity obligations for the Company’s plan are shown below:
Gratuity
Discount rate 9.36% 8.00%
Expected rate of return on assets 8.70% Not applicable
Increase in compensation cost 5.00% 5.00%
Employee Turnover* 5% and 10% 5% and 10%
The estimates of future salary increases, considered in actuarial valuation, are on account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
*5% in case of employees with service period of more than 5 years and 10% for all other employees.
The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable
to the period over which the obligation is to be settled.
amounts for the Current year and previous four years are as follows:
(Rs. in lacs)
march march march march march
particulars
31, 2014 31, 2013 31, 2012 31, 2011 31, 2010
Defined benefit obligation 2,128.54 1,927.94 1,460.99 913.73 612.63
Plan assets 2,073.77 NA NA NA NA
Surplus / (deficit) (54.77) (1,927.94) (1,460.99) (913.73) (612.63)
Experience adjustments on plan liabilities
(gains)/losses 58.31 94.64 343.18 74.98 55.56
Experience adjustments on plan assets
(losses)/gains 51.10 NA NA NA NA

25. The Group has three reportable segment viz.Providing finance to commercial vehicles, other loans(Financing activities),
Trading of Used Commercial vehicles(Trading Division) and Facilitating the buyers / sellers to sell their vehicles (Service
Division) which have been identified in line with the Accounting Standard 17 on Segment Reporting, taking into the
account organizational Structure as well as differential risk and return of these segments. Each of the above activity is
restricted to a common single geographical segment. Hence, no disclosure on geographic segment is warranted.
For the year ended march 31, 2014
Fecilitation
Financing Trading Service
particulars activities division division Total
Segment revenue 840,374.05 - 7,644.64 848,018.69
Segment results (Profit before tax and after 195,802.69 - 1,247.75 197,050.43
interest on financing segment)
Less: Unallocated reconciling items - - 4.11 4.11
Net profit before tax 197,046.32
Less: Income Taxes 61,252.59
Net profit after tax 135,793.73
Add: Share of Profit of Associate -
Net profit after taxes and share of loss of 135,793.73
associate
other information:
Segment assets 5,190,350.20 - 6,784.03 5,197,134.23
Unallocated corporate assets 34,979.95 - 124.47 35,104.42
Total assets 5,225,330.15 - 6,908.50 5,232,238.65
Segment liabilities 4,373,571.93 - 3,082.70 4,376,654.63
Unallocated corporate liabilities 4,543.15 - 23.16 4,566.31
Total Liabilities 4,378,115.08 - 3,105.86 4,381,220.94
Capital expenditure 7,228.25 - 4,519.18 11,747.43
Depreciation 2,955.83 - 322.58 3,278.41
Other non cash expenditure 126,071.06 - 396.01 126,467.07
For the year ended march 31, 2013
Fecilitation
Financing Trading Service
particulars activities division division Total
Segment revenue 694,060.34 84.17 7,451.29 701,595.80
Segment results (Profit before tax and after 214,840.32 (11.12) 1,441.08 216,270.27
interest on financing segment)
Less: Unallocated reconciling items 4.24
Net profit before tax 216,266.03
Less: Income taxes 69,877.26
Net profit after tax 146,388.77
Add: Share of profit of associate (45.98)
Net profit after taxes and Share of Loss of 146,342.79
associate
Other information:
Segment assets 4,688,306.60 - 4,728.51 4,693,035.11
Unallocated corporate assets 34,124.49 - 260.30 34,384.79
Total assets 4,722,431.09 - 4,988.81 4,727,419.90
Segment Liabilities 3,987,074.27 - 2,015.30 3,989,089.57
Unallocated corporate liabilities 4,543.16 - - 4,543.16
Total Liabilities 3,991,617.43 - 2,015.30 3,993,632.73
Capital expenditure 4,247.45 - 69.67 4,317.12
Depreciation 1,894.56 - 376.68 2,271.24
Other non cash expenditure 95,110.75 - 458.30 95,569.05

181
26. empLoyee SToCk opTion pLan

Date of grant 31-Oct-05 1-Apr-06 9-Oct-06 17-Aug-07 15-Jul-08 13-May-09
Date of Board/committee 19-Oct-05 22-Feb-06 6-Sep-06 17-Aug-07 15-Jul-08 13-May-09
Approval
Date of Shareholder’s 13-Oct-05 13-Oct-05 13-Oct-05 13-Oct-05 13-Oct-05 13-Oct-05
approval
Number of options 2,962,500 832,500 910,000 109,000 77,000 50,000
granted
Method of Settlement Equity Equity Equity Equity Equity Equity

(Cash/Equity)
Graded Vesting Period
After 1 year of grant date 10% of 10% of 10% of 10% of 10% of 10% of
Exercisable period 10 years 10 years 10 years 10 years 10 years 10 years
from vesting from vesting from vesting from vesting from vesting from vesting
date date date date date date
Vesting Conditions On achievement of predetermined targets.
The serieswise details have been summarized below:
march 31, 2014

Outstanding at the - - 4,000 - - 14,800
(Number of Shares)
Shares)
Shares)
Less: Exercised during - - 4,000 - - 14,800
Shares)
Less: Expired during - - - - - -
Shares)


march 31, 2014
Outstanding at the end - - - - - -
Shares)
Exercisable at the end of - - - - - -
Shares)
Weighted average - - - - - -
(in years)
Exercise Price(Rs.)
march 31, 2013
Outstanding at the 81,900 13,500 39,050 - 28,400 32,900
(Number of Shares)
Shares)

Shares)
Less: Exercised during 10,400 6,000 11,400 - 23,600 11,100

Shares)
Less: Expired during 71,500 7,500 23,650 - 4800 7,000

Shares)
Outstanding at the end - - 4,000 - - 14,800

Shares)
Exercisable at the end of - - 4,000 - - -

Shares)
Weighted average 5.09 5.49 6.01 6.88 7.78 8.60
remaining contractual
life (in years)

Exercise Price(Rs.)
The weighted average share price for the period over which stock options were exercised was Rs. 650.99
(March 31, 2013: Rs. 660.98)

183

The details of exercise price for stock options outstanding at the end of the year are:
march 31, 2014
There are no stock options outstanding as at March 31, 2014.
march 31, 2013
weighted
average
remaining
contractual weighted
range of number life of average
exercise of options options exercise
Series prices outstanding (in years) price
Series i Rs. 35/- - 5.09 Rs. 35/-
Series ii Rs. 35/- - 5.49 Rs. 35/-
Series iii Rs. 35/- 4,000 6.01 Rs. 35/-
Series iV Rs. 35/- - 6.88 Rs. 35/-
Series V Rs. 35/- - 7.78 Rs. 35/-
Series Vi Rs. 35/- 14,800 8.60 Rs. 35/-
Stock options granted

Series i:
2005 2006 2007 2008
Life of the options granted (Vesting and exercise period) 1.50 2.50 3.50 4.50
in years
Series ii:
2006 2007 2008 2009

Series iii:
2006 2007 2008 2009
Series iV:
2007 2008 2009 2010
Series V:
2008 2009 2010 2011

185
Series Vi:
2009 2010 2011 2012
The expected volatility was determined based on historical volatility data equal to the NSE volatility rate of Bank Nifty which
is considered as a comparable peer group of the Company. To allow for the effects of early exercise, it was assumed
that the employees will exercise the options within six months from the date of vesting in view of the exercise price being
significantly lower than the market price.
Effect of the employee share-based payment plans on the statement of profit and loss and on its financial position:
(Rs. in lacs)
Total compensation cost pertaining to employee share-based
8.36 (86.69)
payment plan (entirely equity settled)
Liability for employee stock options outstanding as at year end 83.61 34.00
Deferred compensation cost 76.15 0.90

Since the enterprise used the intrinsic value method the impact on the reported net profit and earnings per share
by applying the fair value based method is as follows:
In March 2005, ICAI has issued a guidance note on “Accounting for Employees Share Based Payments” applicable to
employee based share plan the grant date in respect of which falls on or after April 1, 2005. The said guidance note
requires that the proforma disclosures of the impact of the fair value method of accounting of employee stock compensation
accounting in the financial statements. Applying the fair value based method defined in the said guidance note, the impact
on the reported net profit and earnings per share would be as follows:

particulars
march 31, 2014 march 31, 2013
Profit as reported (Rs. in lacs) 135,793.73 146,342.79
Add: Employee stock compensation
8.36 (86.69)
under intrinsic value method (Rs. in lacs)
Less: Employee stock compensation
9.83 (80.20)
under fair value method (Rs. in lacs)
Proforma profit (Rs. in lacs) 135,792.26 146,336.30
earnings per share
Basic (rs.)
- Proforma 59.85 64.51
diluted (rs.)
- Proforma 59.85 64.51
Nominal Value (Rs.) Rs. 10.00 Rs. 10.00
27. LeaSeS
in case of assets taken on lease

The Group has taken various office premises, furniture and fixtures, computers and plant and machinery under operating
lease. The lease payments recognized in the statement of profit & loss are Rs. 7,414.97 lacs (March 31, 2013 : Rs.
6,565.64 lacs). Certain agreements provide for cancellation by either party or certain agreements contains clause for
escalation and renewal of agreements. The non-cancellable operating lease agreements are ranging for a period 6 to 144
months. There are no restrictions imposed by lease arrangements. There are no sub leases.
The future minimum lease payments in respect of non-cancellable operating lease as at the balance sheet date are
summarized below :
(Rs. in lacs)
minimum Lease payments:
Not later than one year 1,015.27 950.11
Later than one year but not later than five years 1,623.74 781.92
Later than five years 453.84 58.81

187
In accordance with the Reserve Bank of India circular no.RBI/2006-07/ 225 DNBS (PD) C.C No. 87/03.02.004/2006-
28.
07 dated January 4, 2007, the Company has created a floating charge on the statutory liquid assets comprising
of investment in Government Securities to the extent of Rs. 34,076.00 lacs (March 31, 2013: Rs. 24,161.00 lacs)
in favour of trustees representing the public deposit holders of the Company.
29. reLaTed parTieS diSCLoSure

Related party where control exists
other related parties
Enterprises having significant influence : Shriram Holdings (Madras) Private Limited
over the Company (upto November 05, 2012)
Shriram Capital Limited
Newbridge India Investments II Limited (upto May 10, 2013)
Shriram Ownership Trust
Shriram Financial Ventures (Chennai) Private Limited
( w.e.f. August 31, 2012)
Associates : Shriram Asset Management Company Limited

(upto June 18, 2013)
Key Management Personnel : Mr. Umesh Revankar, Managing Director

Mr. Pratap Paode, Chief Executive Officer, Shriram
Equipment Finance Company Limited
Mr. Sameer Malhotra, Chief Executive Officer, Shriram
Automall India Limited
Relatives of Key Management Personnel : Mrs. Suchita U. Revankar (spouse of Mr. Umesh Revankar)
Master Shirish U. Revankar ( son)
Master Shreyas U. Revankar (son)
Mrs. Geeta G. Revankar (mother)
Mrs. Bidisha Paode(spouse of Mr. Pratap Paode)
Mrs. Kamini Malhotra (spouse of Mr. Sameer Malhotra)


(Rs. in lacs)
key management
personnel(managing director,
Enterprises having significant whole time director, manager andrelative of key management
influence over the company associates other management personnel) personnel Total
march 31, march 31,
march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013
particulars 2014 2013
Payments/Expenses
Employee benefits for key management - - - - - -
205.83 182.19 205.83 182.19
personnel
Car rental charges - - - - - - 5.88 5.28 5.88 5.28

Royalty paid to Shriram Ownership Trust 2,561.58 2,253.37 - - - - - - 2,561.58 2,253.37
Data sourcing fees paid to Shriram Ownership
716.59 620.39 - - - - - - 716.59 620.39
Trust
Service charges paid to Shriram Ownership
4,299.56 3,722.35 - - - - - - 4,299.56 3,722.35
Trust
Service charges paid to Shriram Capital Limited 3,937.95 3,517.01 - - - - - - 3,937.95 3,517.01
Equity dividend paid Ω - - - - 3.13 1.52 - - 3.13 1.52
- Shriram Capital Limited 4,104.08 1,755.08 - - - - - - 4,104.08 1,755.08
Non-convertible debenture matured Ω - - - - - - 2.01 1.09 2.01 1.09
Fixed deposit matured - - - - - - 1.02 - 1.02 -
Interest on fixed deposit - - - - - - 0.15 0.12 0.15 0.12
Interest on subordinated debt - - 17.50 76.30 - - 0.07 0.04 17.57 76.34
Interest on non-convertible debenture - - 0.12 0.62 0.38 - 1.78 1.18 2.28 1.80
Investment in preference shares in Shriram

- - - 100.00 - - - - - 100.00
Asset Management Company Limited Ω
Employee benefits paid Ω
- Shriram Capital Limited - 17.24 - - - - - - - 17.24
Rent paid - - 0.39 2.26 - - - - 0.39 2.26
- Shriram Capital Limited 20.55 - - - - - - - 20.55 -
Other administrative expenses paid to
- Shriram Capital Limited 5.11 - - - - - - - 5.11 -
Unsecured loan given Ω
- Shriram Capital Limited - 34,500.00 - - - - - - - 34,500.00
189
190
(Rs. in lacs)
key management
Enterprises having significant whole time director, manager and relative of key management
particulars march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013
Receipts/Income
Expenses
Unsecured loan repaid µ

Interest received on unsecured loan
Rent and electricity
- Shriram Capital Limited 11.32 15.17 - - - - - - 11.32 15.17
- Shriram Asset Management Company

- - 1.16 5.40 - - - - 1.16 5.40
Limited
Non-convertible debenture µ - - - - - - 3.29 2.38 3.29 2.38
Fixed deposit µ - - - - - - 2.09 - 2.09 -
Subordinated debts µ - - - - - - 0.80 - 0.80 -
Application money of NCD µ - - - - - - - 0.50 - 0.50


(Rs. in lacs)
key management
Enterprises having significant whole time director, manager andrelative of key management
march 31, march 31,
march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013 march 31, 2014 march 31, 2013
particulars 2014 2013
Balance outstanding at the year end
Share Capital - - - - 5.52 5.08 - - 5.52 5.08
- Shriram Capital Limited 5,910.32 5,850.28 - - - - - - 5,910.32 5,850.28

Investment in Equity shares
- Shriram Asset Management Company Limited - - - 240.00 - - - - - 240.00
Investment in Preference shares
- Shriram Asset Management Company Limited - - - 100.00 - - - - - 100.00
Non-convertible debenture - - - 6.00 4.38 - 15.86 7.09 20.24 13.09
Interest payable on Non-convertible debenture - - - - 0.22 - 1.19 1.03 1.41 1.03
Rent receivable from Shriram Capital Limited 0.94 0.94 - - - - - - 0.94 0.94
Administrative expenses payable to Shriram
Capital Limited 3.65 - - - - - - - 3.65 -
Outstanding expenses
-Shriram Ownership Trust 230.94 1,998.44 - - - - - - 230.94 1,998.44

Fixed deposit - - - - - - 2.09 1.02 2.09 1.02
Interest payable on fixed deposit - - - - - - 0.12 0.30 0.12 0.30
Subordinated debt - - - 413.40 - - 1.10 0.30 1.10 413.70
Interest payable on subordinated debt - - - 270.57 - - 0.18 0.11 0.18 270.68
Ω Denotes payments
µ Denotes receipts
191
30. ConTinGenT LiaBiLiTieS noT proVided For
(Rs. in lacs)
a. In respect of Income tax demands where the company has 52,679.22 46,689.12
filed appeal before CIT(Appeals)
b. VAT demand where the company has filed appeal before 2,621.14 1,843.09
Tribunal
c. Service tax liability pertaining to HP/Lease 12,824.07 -
d. Guarantees and counter guarantees 237,803.49 227,250.85
Future cash outflows in respect of (a), (b) and (c) above are determinable only on receipt of judgements /decisions pending
with various forums/authorities. The Company is of the opinion that above demands are not sustainable and expects to
succeed in its appeals.
The Company has received Show Cause Notice demanding service tax on services rendered towards provision of collection
of receivables and liquidity facilities in respect of Securitisation / Direct Assignments for the period 2008-09 to 2011-12 and
the same is contested by the Company.
(Rs. in lacs)
Disputed income tax demand are on account of as at march 31, 2014 as at march 31, 2013
a. Transfer to statutory reserve, provision for NPA, 32,866.77 27,288.44

securitisation, etc
b. Securitisation and royalty for AY 2008-09 and 2007-08 19,773.64 19,400.68
c. Disallowance of ESOP expenses 38.81 -
52,679.22 46,689.12
(Rs. in lacs)
Commitments not provided for as at march 31, 2014 as at march 31, 2013
a. Estimated amount of contracts remaining to be executed on 194.11 394.81

capital account
b. Uncalled amount in investment in ICICI Investment 1,046.96 1,626.85

31. SECURITISATION/ DIRECT ASSIGNMENT
The Company sells loans through securitisation and direct assignment.

The information on securitisation of the Company as an originator in respect of securitisation transaction done during
(Rs. in lacs)

Total number of loan assets under par structure 210,869 216,084
The information on securitisation of the Company as an originator in respect of outstanding amount of securitised assets
is given below:
(Rs. in lacs)
as at as at
No. of SPVs sponsored by the Company for securitisation 48 34
transactions
Total amount of securitised assets as per the books of SPVs 1,226,692.65 943,519.90
sponsored by the Company
Total amount of exposures retained by the Company to comply with
First Loss 751.25 751.25
Others - -
First Loss 80,349.45 38,354.45
Amount of exposures to securitisation transaction other than MRR
First Loss - 1,207.00
Others 96,464.92 43,955.46
First Loss - -
Others - -
First Loss 11,664.54 11,462.58
Others 27,307.99 36,045.91
First Loss - -
Others - -

193
The information on direct assignment of the Company as an originator in respect of par transaction done during the
year is given below:
(Rs. in lacs)

Total number of loan assets under par structure 87,153 51,920.00
assigned under par structure is given below:
(Rs. in lacs)
as at as at
First Loss - -
Others - -
First Loss - -
First Loss 26,909.41 36,749.49
Others 97,287.54 134,145.21
First Loss - -
Others - -
First Loss 19,737.27 33,577.52
Others 575.61 12,268.12
First Loss - -
Others - -

The information on direct assignment of the Company as an originator in respect of premium transaction done during
(Rs. in lacs)

Total number of loan assets under premium structure - -
Total book value of loan assets - -
Sale consideration received - -
assigned under premium structure is given below:
(Rs. in lacs)
as at as at
First Loss - -
Others - -
First Loss - -
Investment in PTC - -
First Loss 4,222.20 6,168.20
Others 1,831.00 17,280.63
First Loss - -
Others - -
First Loss 1,754.36 19,884.27
Others 303.45 5,727.93
First Loss - -
Others - -

195
Based on the intimation received by the Group, some of the suppliers have confirmed to be registered under
32.
“The micro, Small and medium enterprises development (‘mSmed’) act, 2006”. accordingly, the disclosures
relating to amounts unpaid as at the year ended together with interest paid /payable are furnished below:
(Rs. in lacs)
The principal amount remaining unpaid to supplier as at the end of
- -
the year
The interest due thereon remaining unpaid to supplier as at the end
- -
of the year
The amount of interest paid in terms of Section 16, along with the
amount of payment made to the supplier beyond the appointment - -
day during the year
The amount of interest due and payable for the year of delay in
making payment (which have been paid but beyond the appointed
- -
day during the year) but without adding the interest specified under
this Act
The amount of interest accrued during the year and remaining
- -
unpaid at the end of the year
The amount of further interest remaining due and payable even in
the succeeding years, until such date when the interest dues as
above are actually paid to the small enterprise for the purpose of - -
disallowance as a deductible expenditure under section 23 of the
Micro Small and Medium Enterprise Development Act, 2006
33. In addition to the auditors remuneration shown in operating and other expenses, the Company has also incurred
auditors remuneration in connection with audit and related statutory services to be performed by auditors in
connection with public issue of non convertible debentures of rs. 120.62 lacs (march 31, 2013: rs. 53.38 lacs)
[including out of pocket expenses of Rs. 1.52 lacs (March 31, 2013: Rs. 0.46 lacs)] have been amortised as per
note 13 and shown under other assets.

MERGER OF ShRIRAM hOLDINGS (MADRAS) PRIVATE LIMITED [‘ShMPL’] WITh ThE

34.
Company durinG The year ended marCh 31, 2013, :
(a) On December 21, 2011, the Board of Directors of the Company have approved the merger SHMPL with the Company.
In terms of the Scheme of Amalgamation & Arrangement (Scheme) approved by Hon’ble High Court of Madras vide
order dated September 13, 2012 and subsequent filing thereof with the Registrar of Companies (‘ROC’), Tamil Nadu
dated November 05, 2012, Shriram Holdings (Madras) Private Limited (“SHMPL”), an Investment company has been
amalgamated with the Company with effect from April 01, 2012. The scheme was effective only after the filing thereof
with ROC, Tamil Nadu and had an appointed date of April 01, 2012.
(b) Prior to the merger, SHMPL held 93,371,512 shares of the Company.
(c) The amalgamation has been accounted for under the “Purchase method” as prescribed by “Accounting Standard
14 (AS-14) Accounting for Amalgamation” notified under Companies (Accounting Standards) Rules, 2006 (as
amended).
(d) In accordance with the said Scheme:
i) All the assets (other than shares of the Company held by “SHMPL” of the Company), debts, liabilities, duties
and obligations of SHMPL have been vested in the Company with effect from April 01, 2012 and have been
recorded at their respective Fair values under the purchase method of accounting for amalgamation. There were
no difference in the accounting policies of “SHMPL” and the Company.
ii) Exchange ratio determined at 313:124 (i.e. 313 equity shares of Rs. 10/- each of the Company for every 124
equity shares of Rs. 10/- each of “SHMPL”and these equity shares ranking pari-passu with the existing equity
shares of the Company.
iii) Additional issue of 500,868 equity shares to the shareholders of SHMPL, pursuant to Net Assets taken of
SHMPL over by the Company.
iv) In accordance with the said scheme, excess of the Net Assets Value taken over by the Company vis-a-vis
additional equity shares issued has been transferred to capital reserves.
v) Details of Net Assets taken over and transfer to Capital reserve is as under:
amount in rupees
Fair Value of the asset:
-Investment 264,510,406.00
-Cash 200.00
-Bank 11,460,048.00
-Other Asset (Advance tax) 3,534,271.00
Less: Liabilities (creditors) (17,500.00)
Fair Value of net asset taken over 279,487,425.00
Less:
Additional issue of equity share (500,868 equity shares
(5,008,680.00)
of Rs. 10 each)
amount taken to capital reserves on amalgamation 274,478,745.00

197
ADJUSTMENT DUE TO DECREASE/(INCREASE) IN STOCk

35.
oF uSed CommerCiaL VehiCLeS
(Rs. in lacs)

Opening stock (A) - 96.11
Less: Closing stock (B) - -
Decrease/(increase) in stock of used commercial vehicles
- 96.11
(a-B)
addiTionaL inFormaTion purSuanT To The proViSionS oF

36.
paraGraph 3 oF parT ii oF SCheduLe Vi oF The aCT.
(Rs. in lacs)
details of Stock and Sales of Vehicles: march 31, 2014
opening Stock purchases Closing Stock Gross Sales
Quantity Value (rs in Quantity Quantity Value (rs in Quantity Value

(nos) lacs) (nos) (nos) lacs) (nos) (rs in lacs)
- - - - - - -
(Rs. in lacs)
details of Stock and Sales of Vehicles: march 31, 2013
opening Stock purchases Closing Stock Gross Sales
Quantity Value (rs in Quantity Quantity Value (rs in Quantity Value
(nos) lacs) (nos) (nos) lacs) (nos) (rs in lacs)
25 96.11 - - - 25 84.17
37. expendiTure in ForeiGn CurrenCy (ACCRUAL BASIS)

(Rs. in lacs)

Rating fees 43.90 -
Computer software 7.33 -
Total 51.23 -
38. preViouS year ComparaTiVeS
Previous year figures have been regrouped / rearranged, wherever considered necessary, to conform with current year’s
presentation.




notes

199
notes

Printed at SAI SHRIRAM PRINTERS (A DIVISION OF SIHL)
www.stfc.in

Shriram Transport Finance Company Limited: 35Th Annual Report 2013-14

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Shriram Transport Finance Company Limited: 35Th Annual Report 2013-14

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Shriram TranSporT FinanCe Company LimiTed i 35Th annuaL reporT 2013-14

annual performanCe trends 2

management disCussion & analysis 6

report on Corporate governanCe 20

CertifiCate on Corporate governanCe 39

Business responsiBility report 40

Forward Looking STaTemenTS

Corporate Identification No. (CIN) L65191TN1979PLC007874

COMPANY SECRETARY Andhra Bank Karur Vysya Bank

REgISTERED OFFICE Dhanlaxmi Bank The Ratnakar Bank

Indian Bank United Bank of India

Annual Report 2013-14

ASSETS UNDER MANAGEMENT (Rs. crore) TOTAL INCOME (Rs. crore)

ON BOOKS OFF BOOKS

NET INTEREST INCOME (Rs. crore) NET PROFIT (Rs. crore)

EPS (BASIC) (Rs.) NPA (%)

GROSS NPA NET NPA

2 Shriram Transport Finance Company Limited

BACHHELI CUMBUM GANGANAGAR HUVINAHADAGALI

Annual Report 2013-14

KATHUA NADIAD PANJIM

4 Shriram Transport Finance Company Limited

Annual Report 2013-14

EConoMIC ovErvIEw CoMMErCIaL vEhICLES

6 Shriram Transport Finance Company Limited

DISTRIBUTION CHAIN - HUB AND SPOKE MODEL

Source: Avendus Research

FY14 - coupled with government’s inability to kick start projects

MANAGEMENT DISCUSSION & ANALYSIS Annual Report 2013-14

8 Shriram Transport Finance Company Limited

KEy rISKS anD MITIgaTIon MEaSurES

Threat of entrants – Low

Competition – Low Customer’s bargaining power – Low

MANAGEMENT DISCUSSION & ANALYSIS Annual Report 2013-14

huMAN RESOuRCE RISk

INTEREST RATE RISk

10 Shriram Transport Finance Company Limited

ASSET-lIABIlITY MISMATCh RISk

CASh MANAgEMENT RISk

MANAGEMENT DISCUSSION & ANALYSIS Annual Report 2013-14

Particulars 2013-14 2012-13

CaPITaL aDEquaCy raTIo

12 Shriram Transport Finance Company Limited

DIRECTORS’ REPORT Annual Report 2013-14

14 Shriram Transport Finance Company Limited

DIRECTORS’ REPORT Annual Report 2013-14

16 Shriram Transport Finance Company Limited

annEXurE To ThE DIrECTorS’ rEPorT, 2013-14

a) Option granted 4,941,000 equity shares of Rs.10 each

DIRECTORS’ REPORT Annual Report 2013-14

l) Series I Series II Series III Series IV Series V Series VI

m) Fair Value of option based on Black Scholes methodology

18 Shriram Transport Finance Company Limited

Annual Report 2013-14

20 Shriram Transport Finance Company Limited

CORPORATE gOVERNANCE (Contd.)

REPORT ON CORPORATE GOVERNANCE Annual Report 2013-14

CORPORATE gOVERNANCE (Contd.)

22 Shriram Transport Finance Company Limited