SWOT ANALYSIS Strengths The pioneer in the pre-owned commercial vehicles nancing sector Knowledge-driven and relationship-based business

ess model Pan-India presence with 539 branch of ces A well-de ned and scalable organisation structure based on product, territory and process knowledge Strong nancial track record driven by fast growth in AUM with low Non Performing Assets (NPAs) Experienced and stable management team Strong relationships with public, private as well as foreign banks, institutions and investors. More than 9.5 lac customers across India Weaknesses The Companys business and its growth are directly linked to the GDP growth of the country Opportunities Growth in the CV market Strong demand for construction equipment Strong demand for passenger CVs Strong demand for pre-owned tractors Loans for working capital requirements of CV users Partnerships with private nanciers will enable the Company to enhance its reach without signi cant investments in building infrastructure Threats Regulatory changes in the NBFC and ancillary sectors

NBFC INDUSTRY Non Banking Finance Companies (NBFCs) have emerged as Important nancial intermediaries particularly for the smallscale and retail sectors. With simpli ed sanction procedures, exibility, low operating cost and focused product presence, NBFCs have an edge over banks in meeting the credit needs

of customers. 2012-13 has been a challenging year for the Indian commercial vehicles industry as the cumulative impact of diverse factors such as slowdown in economic activity, high interest rates, rising fuel and vehicle prices dampened consumer sentiments. As the economy slowed down, most of the segments in the auto space reported either a tepid growth or a decline in volumes. The cumulative production for 2012-13 re ected a production growth of only 1% over the same period last year for the Indian automobile sector as a whole. The overall commercial vehicles segment registered a decrease of 2% in 2012-13. While the sales volume for medium and heavy commercial vehicles (M&HCVs) declined by 23%; demand for light commercial vehicles (LCVs) witnessed an increase of 14% on account of higher demand for intra-city logistics.

SWOTANALYSIS
Strengths The pioneer in the pre-owned CVs financing sector Knowledge-driven (products as well as local customers) and relationship-based business model Significant expertise and experience in valuation of pre -owned CVs as well as in recovery/collection of monthly payments from customers Pan-India presence with 484 branch offices all over the country. A well-defined and scalable organisation structure, capable of supporting surging growth Low delinquency as assets are backed with adequate cover and are easy to repossess wit h immediate liquidity. Strong financial track record driven by fast growth in AUM with low Non Performing Assets (NPAs) Experienced and stable management team Strong relationships with public, private as well as foreign banks, institutions and inves tors Weaknesses The Companys business and its growth are directly linked to the GDP growth of the country. Any slowdown in GDP growth may have a negative impact on the business Opportunities Growth in the CV market driven by the economic growth and the infrastructure development in the country Strong demand for construction equipment Strong demand for passenger CVs Strong demand for pre-owned tractors

 Loans for working capital requirements of CV users Partnerships with private financiers will enable the Company to enhance its reach without significant investments in building infrastructure Threats Maintaining relationships with customers who are mobile and have no proper documentation Maintaining asset quality Regulatory changes in the Non-Banking Financial Company (NBFC) and transportation sectors

Key milestones

1984 1979 1990 2002

Initial Public Offering

STFC was established

Investment from Telco & Ashok Leyland

Preferential Allotment to Citicorp Finance (India) Ltd.

1999-00
Tied up with Citicorp for CV fi nancing under PMS The 1st securitisation transaction by STFC

2004
Preferential Allotment to Axis Bank and Reliance Capital Ltd.

2009
Successfully placed Rs. 1000 crores of NCD with domestic investors Purchased hypothecation loan portfolio of CV and construction equipment of GE Capital Services India and GE Capital Financial Services (GE) aggregating to

~Rs. 1,100 crores

2005-06

Merger of Shriram Investment Ltd. and Shriram Overseas Finance Ltd. with STFC PAT croses Rs. 100 crores Investment from ChrysCapital and TPG)

2010
Securitised Rs. 8,757 crores Successfully raised Rs. 584 crores through QIP with domestic & international investors
3

Annual Report 2010-11