Gujarati Club News: [Gujarati Club] Shriram Finance Secured NCD - 11.50% Int.

[Attachment(s) from nikhil vadia included below]

Dear Sir / Madam

Shriram Group started accepting Secured Non Convertible Debentures (NCD). Its right time to invest in same when Share Market is volatile or feel risky to invest further. In this scenario, it will give good & safe Fixed return.

Trustee : IDBI

Shareholders : Reputed Institutes Such as Chrys Capital, Citicorp, Axis Bank, ICICI Ventures, ICICI AMC, Reliance Capital, Fidelity, Merill Lynch, etc. besides Shriram Group

Advantages of this NCD compared to earlier NCD :

Please note that NCD will be issued in Physical form, so even those who are not having Demat A/c can also invest in the same this time.

There is no lock in period like earlier NCD. You can Invest in the same for different duration as per your choice from 1 year to 7 years.

Comparision Between Shriram Transport Finance Co.Ltd. & Mahindra Finance Ltd.

Shriram Upto 11.50% Secured NCD

V/s.

Mahindra Finance 10.50% - Fixed Deposits

	Shriram Transport Finance Co. Ltd.	Mahindra Finance Ltd.
Incorporation	1979	1991
Income F.Y.2011-12	5,890 Crs.	2,767 Crs.
Profit After Tax 2011-12	1,257 Crs.	620 Crs.
NPA	0.38%	0.90%
Reserves & Surplus	5,766 Crs.	2,848 Crs.
CRISIL Rating	FAA+ (Stable & Highest Safety) by CRISIL	FAA+ (Stable & Highest Safety) by CRISIL
Rate of Interest	Upto 11.50% (Cumulative & Non Cumulative)	10.25% (Cumulative) 10.00% (Non Cumulative) + 0.25% Sr.Citizen / Shareholders
Nature	Secured	Unsecured
Trustee	IDBI	None
Share Price (As on 11.06.2012)	521	640

Other Highlights in addition to above Points :

Ø STFC is India 's Largest Asset Financing Non-Banking Finacial Corporation (NBFC) with over Rs.40,000 Crore of Assets Under Management (AUM). The company has a customer base of over 850,000 & More than 650 Branches across the country. Its AUM has grown by a compounded annual growth rate of over 65% in the last 4 years

Ø Employee strength of approximately 15,057 as of March 31, 2012

Ø Shriram Financial business grew almost 50 times in Market capitalization

Ø Earnings Per Share (EPS) for an investor in Shriram Transport Finance Co. Ltd. (STFC) which contributes 70% to the profits of Shriram Capital Ltd. Was Rs.11.01 in 2006-07 soared to 54.49 in 2010-11, an increase of almost 400%.

Ø It has 20-25% Market Share in this segment. The company Finances 5-12 year old Trucks / Commercial Vehicles where Competition from organized players is non existent.

Ø Shriram Transport Finance Co.Ltd. wins the ICAI Award for Financial Reporting.

Ø Mr. R. Shridhar Ranked No.6 among Top 25 India's Best CEO's.

When Mr.Shridhar took over as Managing Director in 2000, STFC was a medium size Non Banking Finance Co. (NBFC) with assets of Rs.5,000 Crores, a Net Profit of Rs.50 Crore & Market Capitalisation of Rs.500 Crores.

Today, it is the largest asset financing NBFC in india, with assets of Rs.18,000 Crores,

a Net Profit of Rs.1,230 Crore & Market Capitalisation of Rs.36,000 Crores.

In Fact, Mr.Shridhar is No.1 on both country adjusted & industry adjusted total shareholder returns in the Business today – Harvard Business review Best CEO's Ranking.

Ø Tied up with Axis Bank to distribute credit cards to small truck owners & Distributed over 2,40,000 credit cards as of March 31, 2012

Ø No. of Mutual Funds invested in STFC was 13 in May'09, 25 in Dec'09, 30 in May'10 & 38 in May'11

Ø Suggested for Shriram Unnati Fixed deposits Investment by Outlook Money dated 11.08.2010.

Ø One of the Top 10 Shares to buy suggested by Money Today – Aug'2010

Profits Details: (Rs. in Crs)

Year	Profit before tax	Profit after tax
2011-12	1,880.91	1,257.45
2010-11	1,515.67	1,229.88
2009-10	1,324.59	873.12
2008-09	920.63	612.40
2007-08	605.83	389.82
2006-07	289.22	190.39