Shriram City Union Finance Limited - Karvy

We leverage on the Shriram Group’s ecosystem to reach out to our prospective customers and our focus has been inmaximizing our association with the “Shriram” brand name and the synergies offered by the infrastructure, of otherentities in the Shriram Group. Our customer base over the years has significantly comprised of customers of otherentities in the Shriram Group. The large customer bases and wide-spread network of business outlets of entities suchas, Shriram Transport Finance Company Limited, (one of the largest organized asset financing NBFCs in India), andentities operating under the “Shriram Chits” brand name, has continued to provide us with a large platform of targetcustomers.Over the last 25 years our Company has established a pan-India presence, with 559 branches and 91 other businessoutlets as of March 31, 2011, across 17 states in India, with a significant presence in south India. As on March 31,2011, our total employee strength was 2,318. We operate in a ‘hub-and spoke’ business model, whereresponsibilities from loan origination to recoveries of loans are vested in each of our business outlets, under thegeneral supervision and control of our head office in Chennai. Our business outlet networks are interconnected andeach business outlet is connected to our head office through an ERP platform developed by Take Solution Limited,Chennai.We have demonstrated consistent growth in our business and in our profitability. Our Assets Under Managementhave grown by a compounded annual growth rate, or CAGR, of 46% from ` 250,686.49 lakhs as of March 31, 2007to ` 799,804.88 lakhs as of March 31, 2011. Our capital adequacy ratio as of March 31, 2011 computed on the basisof applicable RBI requirements was 20.53%, compared to the RBI stipulated minimum requirement of 15.00%. OurTier I capital as of March 31, 2011 was ` 119,419.00 lakhs. Our Gross NPAs as a percentage of Total Loan Assetswere 1.86% as of March 31, 2011. Our Net NPAs as a percentage of Net Loan Assets was 0.43% as of March 31,2011.Our total income increased from ` 34,805.91 lakhs in fiscal 2007 to ` 132,091.19 lakhs in fiscal 2011 at a CAGR of45%. Our net profit after tax increased from ` 5,162.16 lakhs in fiscal 2007 to ` 24,058.85 lakhs in fiscal 2011, at aCAGR of 50%. A summary of our assets under management, net non performing assets, total income and net profitafter tax for the corresponding periods specified below are as follows:ParticularsAssets UnderManagementNet Non performingassets` In LakhsAs at March As at March As at March As at March As at March31, 2007 31, 2008 31, 2009 31, 2010 31, 2011250,686.49 336,889.78 462,950.89 521,550.18 799,804.882,561.44 2,495.70 3,590.35 3,322.73 2,982.76For the For the For the For the For theFinancial Financial Financial Financial FinancialYear Ended Year Ended Year Ended Year ended year endedMarch 31, March 31, March 31, March 31, March 31,2007 2008 2009 20102011Total Income 34,805.91 62,318.76 93,393.75 110,284.71 132,091.19Net Profit after Tax 5,162.16 8,763.50 11,700.77 19,425.86 24,058.85Our StrengthsWe believe that the following are our key strengths:Diversified Portfolio of ProductsOur Company’s product portfolio comprises (i) Product Finance loans, (ii) pre-owned and new vehicles loans, (iii)personal loans, (iv) loans against gold, and (v) loans to small enterprise finance segment. Each of our productsdiffers in terms of the average tenor, average yield, average interest rates and average size of loan. As on March 31,2011 approximately 15 % of our Assets Under Management comprised product finance loans, 24 % of our AssetsUnder Management comprised vehicle loans, 9 % of our Assets Under Management comprised personal loans, 28 %29