To

The Members of

Shriram Housing Finance Limited

Your Directors are pleased to present the 3rd Annual Report and Audited Statement of
Accounts for the financial year ended 31stMarch, 2013.


FINANCIAL RESULTS:

(Rs. in lac)


  

    
Particulars
    
2012-13
    
2011-12
  
  

    
Gross Income
    
972 77
    
35.21
  
  

    
Other Income
    
719.02
    
7.97
  
  

    
Profit/ (loss} before Taxation
    
9.24
    
(489.18)
  
  

    
Provision for Taxation
    
(31.38)
    
44.39
  
  

    
Profit/ (loss) after Taxation
    
(22.14)
    
(444.79)
  
  

    
Add: Balance brought forward
    
(444. 79)
    
NIL
  
  

    
Balance carried to Balance Sheet
    
(466.93)
    
(444.79)
  



OPERATIONS:

During the year under review, total income of the Company for the year was Rs.1691.70
lac. The Company has incurred a net loss of Rs..22.14 lac for the year ended 31st March.
2013.


DISBURSEMENTS:

The Company commenced the disbursement of loans w.e.f. December 1st, 2011. The total
disbursements for the financial year 2012-13 aggregated to 7 11496 lacs.


CAPITAL STRUCTURE:

During the year under review, the paid up share capital of the company was increased
from Rs.14,80,00,000/- to 791,50,00,000/-.


MATERIAL DEVELOPMENT:

A Shareholders' Agreement and Share Subscription Agreement was executed between the
promoter Shriram City Union Finance, Valiant Mauritius Partners FDI Limited and the
Company w.e.f. March 29, 2012. The amount of investment under these agreements is to be
received in three tranches.

The first tranche of the investments under these agreements was received on 3rd
April 2012, both from the investor, M/S Valiant Mauritius Partners FDI Limited and the
promoter, M/S Shriram City Union Finance Ltd.


EMPLOYEE STOCK OPTION SCHEME (ESOS)

The Company has implemented Employees Stock Options Scheme (ESOS) approved by the
members at the Extra-Ordinary General Meeting held on March 28, 2013. The board level
compensation committee has been constituted administer and monitor.


DIVIDEND:

Since the revenue generation of the Company is in its initial stages, the Directors
have not recommended any dividend for the year ended March 31, 2013.


DIRECTORS:

During the year, in October 2012, Mr. G. S. Sundararajan was appointed as an Additional
Director.

Dr. Qudsia Gandhi, a member of the Indian Administrative Service, was appointed as an
Independent Director on the Board of Directors of the Company.

Ms. Subhasri Sriram retires by rotation and being eligible offers herself for
reappointment. Your directors recommend her re-appointment.

None of the Directors are disqualified from being appointed as Directors, as specified
in Section 274 (1) (g) of the Companies Act, 1956.


AUDITORS:

M/S. Pijush Gupta & Co, retire as Statutory Auditors of the Company at the
conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The
Company has received a letter from the retiring Auditors to the effect that their
appointment as Statutory Auditors, if made, would be within the limits prescribed u/s 224
(IB) of the Companies Act, 19S6.

Members are requested to re-appoint M/s. Pijush Gupta & Co as the Statutory
Auditors of the Company for the year 2012-2013.


PARTICULARS OF EMPLOYEES:

Information in accordance with the provisions of Section 217 (2A) of the Companies Act,
1956 read with Companies (Particulars of Employees) Rules, 1975, as amended, form a part
of this report. However, as per the provisions of Section 219(1) of the Companies Act,
1956 this report and accounts are being sent to all the members of the Company and others
entitled there to, excluding the aforesaid information. Any member interested in obtaining
such particulars may write to the Company Secretary at the Secretarial Office of the
Company and the same will be sent by post.


FIXED DEPOSITS:

The Company has not invited/accepted/renewed any fixed deposits as per the provisions
of Section 58A of the Companies Act, 1956 from the public during the year.


DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 217 (2AA) of the Companies Act, 1956, read with respect to
Directors' Responsibility Statement, it is hereby confirmed as under:-

• That in the preparation of the annual accounts, the applicable accounting
standards had been followed along with the proper explanation relating to material
departure;

• That the Directors' had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at end of the financial
year and of the loss of the Company for that period;

• That the Directors had taken proper and sufficient care, for the maintenance of
adequate accounting records in accordance with the provisions of this Act, 1956, for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;

• That the Directors had prepared the annual accounts on a going concern basis.


CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION:

Provisions of Section 217(1) (e) of the Companies Act, 1956 read with the Companies
(Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 in
relation to conservation of energy and technology absorption are currently not applicable
to the Company.


FOREIGN EXCHANGE EARNINGS AND OUTGO:

During the year under review, the Company had no foreign exchange earnings and outgo.


ACKNOWLEDGEMENT:

Your Directors place on record their appreciation for the support and assistance
received from the investors, customers, vendors, bankers, financial institutions, business
associates, regulatory and governmental authorities. Your Directors also place on record
the commitment and involvement of the employees at all levels and looks forward for their
continued co-operation.


  

    

    
For and On behalf of Board of Directors,
    

  
  

    
Date: Chennai
    
Sujan Sinha
    
Subhasri Sriram
  
  

    
Place: 15th May, 2013
    
Managing Director
    
Director