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 & Investment Banking Integrated Enterprises (India) Limited Bank of Tokyo - Mitsubishi UFJ 2nd Floor, ‘Kences Towers’, No. 1, Barclays Bank PLC Standard Chartered Bank Ramakrishna Street, State Bank of Bikaner & Jaipur North Usman Road, T. Nagar, Canara Bank 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 State Bank of Travancore IDBI Trusteeship Services Limited DBS Bank Ltd Asian Building, Ground Floor, Dena Bank Syndicate Bank 17, R. Kamani Marg, Ballard Estate, The Federal Bank Mumbai – 400 001. Deutsche Bank AG Development Credit Bank The Jammu & Kashmir Bank REGISTERED OFFICE Dhanlaxmi Bank The Ratnakar Bank HDFC Bank The South Indian Bank Mookambika Complex, Hongkong and Shanghai Banking Corporation UBS AG 3rd Floor, No. 4, UCO Bank Lady Desika Road, ICICI Bank Mylapore,Chennai – 600 004. IDBI Bank Union Bank of India Indian Bank United Bank of India HEAD OFFICE Indian Overseas Bank United Overseas Bank Vijaya Bank Wockhardt Towers IndusInd Bank 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 5,893.88 40,213.90 6000 5,401.05 40000 36,182.63 36,473.68 31,443.83 5000 4,495.54 29,159.28 30000 4000 21,987.76 19,865.61 3000 20000 17,979.25 2000 1000 10000 0 2009-10 2010-11 2011-12 2012-13 2013-14 11,180.03 16,317.02 18,226.14 18,232.18 16,628.43 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 1,257.45 3000 2,907.86 1,229.88 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 3.5 60 55.59 55.72 3.2 54.49 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 10 0.5 0.8 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 BILASPUR D GANGTOK BALASORE BIORA GANJBASODA ABOHAR BALGHAT BIRBHUM DABASPET GAYA ADILABAD BANKURA BODELI DAHOD GOBICHETTIPALAYAM ADIMALY BANSWARA BOKARO DAMOH ADONI GODHARA BARAMATI BONGAIGAON DARBHANGA AGARTALA GODHAVARIKHANI BARAN BULANDSHAHER DAUSA AGRA GONDIA BARASAT BUNDI DAVANGERE AHMEDABAD BARDOLI BURDWAN DEEPIKA GORAKHPUR AHMEDNAGAR BAREILLY BURHANPUR DEHRADUN GUDIVADA AJMER BARMER DEOGHAR GUDIYATHAM AKOLA BARODA C DEWAS GUDUR ALAPPUZHA BASAVAKALYAN DHAMTARI GUDUVANCHERY CALICUT ALIGARH DHANBAD BATLAGUNDU GULBARGA ALLAHABAD CHALLAKERE BEED DHAR GUMMIDIPOONDI ALWAR CHAMARAJNAGAR BEGUSARAI DHARMAPURI AMALAPURAM CHANDAN NAGAR GUNA BEHRAICH DHARWAD AMARAVATI CHANDAPURA GUNTUR BELGAUM DHULE AMBALA CHANDIGARH GURGAON BELLARY DINDIGUL AMBIKAPUR CHANDIKHOL BELTHANGADY DODDABALLAPUR GUWAHATI AMRELI CHANDRAPUR BENGALURU DURGAPUR GWALIOR AMRITSAR CHANNAGERI BERHAMPUR ANAKAPALLE BETUL CHANNAPATNA ANANATHAPUR E H BHADRAK CHANNARAYAPATNA ANAND BHAGALPUR CHATTARPUR ELURU HALDWANI ANCHAL BHANDARA CHENGALPATTU ERNAKULAM HALOL ANGAMALY BHARATPUR CHENNAI ERODE HANMANA ANGUL BHARUCH CHICKBALLAPUR ETAWAH HANUMANGARH ARAKALGUD BHATINDA CHIDAMBARAM HARIHARA ARAKONAM BHAVANIPURAM CHIKHLI HARUR ARANI BHAVNAGAR CHIKKAMANGALORE F HASSAN ARANTHANGI BHAWANIPATNA CHIKODI ARASIKERE FAIZABAD HAVERI BHDARAVATI CHINCHWAD ARCOT FARIDABAD HAZARIBAGH BHILAI CHINDWARA ARIYALUR FARUKHABAD HIMAYATHNAGAR BHILWARA CHIPLUN ARRAH FATHEPUR HIMMATNAGAR BHIMAVARAM CHIRALA ASANSOL BHIND HINDUPUR CHITRADURGA ATTINGAL BHIVANI HISAR CHITTORE ATTUR G BHIWANDI HODAL CHITTORGARH AURANGABAD BHOPAL GADAG CHOWTUPPAL HOOGHLY AZADPUR GADHINGLAJ BHUBANESWAR HOSHANGABAD AZAMGARH COIMBATORE BHUJ GADWAL COOCHBEHAR HOSPET BIDAR GAJUWAKA CUDDALORE HOSUR BIJAPUR GAJWEL B CUDDAPAH HUBLI BIJNORE GANDHIDHAM BACHHELI CUMBUM HUVINAHADAGALI BIKANER GANGANAGAR BADDI CUTTACK BILASHPUR GANGAVATHI HYDERABAD Annual Report 2013-14 3 OUR REACH (Contd.) I KANNUR L MOTIHARI P KANPUR MUDBIDRI ILKAL KARAD L B NAGAR MUMBAI PADI INDORE KARAIKUDI LAKHIMPUR MURSHIDABAD PALAKKAD LAKHIMPURKHIRI IRINJALAKUDA KARIMNAGAR MUZAFFARPUR PALANI LALGUDI IRITTY KARNAL MYSORE PALANPUR LATUR ITCHAPURAM KARUR PALAYAMKOTTAI LINGASUGUR PANCHKULA KASARAGOD LUCKNOW N J KASHIPUR LUDHIANA PANDHARPUR KATHUA NADIAD PANJIM JABALPUR NAGAMANGALA KATNI PARAMAKUDI JAGADAMBA NAGAPATTINAM KATTAPPANA M PARAVATHIPURAM JAGDALPUR NAGERCOIL KATTEDAN MACHILIPATNAM PARBHANI JAIPUR NAGOLE KAVALI MADANAPALLE PATAN JAISALMER NAGOUR KAWARDHA MADHURAWADA PATHANAMTHITTA JAJPUR NAGPUR KAYAMKULAM MADIKERI PATHANKOT JALANDHAR NAMAKKAL KEONJHAR MADIWALA PATNA JALGAON NANDED KHAMGAON MADURAI PATTUKOTTAI JALNA NANDIGAMA KHAMMAM MAHABOOBNAGAR PENDURTHI JAMKHAMBHALIA NANDURBAR KHANDWA MALDA 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 NATHAM MANGALORE PURI JHUNJHUNU KOPPAL MANJERI NAVI MUMBAI PURNEA JODHPUR KORBA MARATHALI NAVSARI PUSAD JORHAT KOTA MARKAPURAM NEEMUCH PUTTUR JUNAGADH KOTHAGUDEM MARTHANDAM NELAMANGALA JYEPORE KOTHPUTALI MATHURA NELLORE KOTTAYAM MAYILADITHURAI NEW DELHI R KOVILPATTI MEDAK NEYYATINKARA K RAIBAREILLY KRISHNAGIRI NIRMAL MEERUT RAICHUR KADIRI KRISHNANAGAR NIWAI MEHSANA RAIGANJ KAITHAL KUKATPALLY NIZAMABAD MELMARUVATHUR RAIGARH KAKINADA KULITHALAI MELUR RAIPUR KALLAKURICHI KULLU METTUPALAYAM RAJAHMUNDRY KALPAKKAM KUMBAKONAM O METTUR 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 4 Shriram Transport Finance Company Limited OUR REACH (Contd.) RANCHI SHIVPURI THIRUPPATHUR W RANIPET SHOLINGANALLUR THIRUVALLUR RATANGARH SHRIRAMPUR THIRUVARUR WADI RATLAM SIKAR THURAIYUR WADKHAL RATNAGIRI SILCHAR TINDIVANAM WAIDHAN RAYAGADA SILIGURI TINSUKIA WARANGAL RENUKOOT SINDHANUR TIPTUR WARDHA REWA SINGARAYAKONDA TIRUCHENDUR WARDHAMAN NAGAR REWARI SIRA TIRUCHENGODE WASHIM ROHA SIRKALI TIRUNELVELI ROHTAK SIRMOUR TIRUPATHI ROURKELA SIROHI TIRUPPUR Y SIRSA TIRUR YADGIR S SIRSI