Shriram City Union Finance Limited Issue Related FAQs Q1. What is the Nature & Size of the Issue? Ans: Public Issue by Shriram City Union Finance Limited, ( Company or Issuer ) of Secured Non- Convertible Debentures of face value of Rs. 1,000 each, ( NCDs ), aggregating upto Rs. 25,000 lacs with an option to retain over-subscription up to Rs. 25,000 lacs for issuance of additional NCDs aggregating to a total of up to Rs. 50,000 lacs. Q2. What is the rating of the Issue? Ans: The NCDs proposed to be issued under this Issue have been rated CARE AA by CARE for an amount of upto Rs. 50,000 lacs and CRISIL AA- /Stable by CRISIL for an amount of upto Rs. 50,000 lacs. The rating of the NCDs by CARE and CRISIL indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk. Q3. What is the face value of this NCD? Ans: The NCDs will be issued at a face value of Rs. 1,000/ per NCD. Q4. What is the frequency of interest payment? Ans: Series I and Series II NCDs will carry an interest payment to be made on annual basis. Series III and IV NCDs do not carry a specific coupon and shall be redeemed at a specific Redemption Amounts as mentioned in the Prospectus are payable. Q5. What is the minimum application size for investment? Ans: An investor needs to apply for a minimum of Rs. 10,000 or 10 NCDs (for all Series of NCDs, namely Series I, Series II, Series III and Series IV either taken individually or collectively) and in multiples of Rs. 1,000 or 1 NCD thereafter 1
Q6. Is there any reservation for Individual Investor investing in this issue? Ans: Yes. Individual Investors in this Issue have been classified under two categories, i.e. Non Reserved Individual Investors (Resident Indian individuals who apply for NCDs aggregating to a value more than Rs. 5 Lakhs, across all Series of NCDs) and Reserved Individual Investors (Resident Indian individuals who apply for NCDs aggregating to a value not more than Rs. 5 Lakhs, across all Series of NCDs). 40% of the issue is reserved for Non Reserved Individual Investors and 40% for Reserved Individual Investors. Q7. Is demat account necessary to invest in these NCDs? Ans: The demat account is necessary for investing in these NCDs to all categories of investors. Q8.Who is not eligible to invest in the issue? Ans: Minors without a guardian name, Foreign nationals, Persons resident outside India, Non Resident Indians, Qualified Foreign Investors, Foreign Venture Capital Investors, Persons ineligible to contract under applicable statutory/regulatory requirements, Foreign Institutional Investors and Overseas Corporate Bodies. Q9. Can the application be made on joint names? Ans: Applications can be in single or joint names (not exceeding two names). In case of Applications in joint names for Allotment of NCDs, the names should be in the same order as the appearing in the records of the Depository Participant. In the case of joint Applications, all payments will be made out in favour of the first Applicant. All communications will be addressed to the first Applicant. In the case of applications made in joint names, each of the applicants should mention his or her Permanent Account Number (PAN) allotted under the IT Act in the Application Form. Q10. What is the time period between date of allotment and date of closure of the issue? Ans: Allotment of NCDs offered to the public shall be made within a time period of 12 working days from the date of closure of the Issue. Q11. Which stock exchange are the bonds proposed to be listed on? Ans: The NCDs are proposed to be listed on the NSE and the BSE 2
Q12. What are the new features introduced in this Issue? Ans: (a) Investors can make an application through ASBA mechanism through submitting ASBA Applications to the members of the Syndicate and through submitting ASBA Applications through the Designated Branches of the SCSBs. (b) If Individual Investors (Reserved Individual Investors and Non Reserved Individual Investors) hold the NCDs on any record date, they shall be eligible to additional incentive in terms of interest in case of Series I and II and redemption premium amount in case of Series III and IV respectively. (c) Market Making: The Company may explore the possibility of appointment of market maker for the offering, which may be appointed subject to receipt of the statutory approvals as may be required. Q13. What are the benefits received by investors falling under Category III and Category IV as individual investors? Ans: The issue offers benefits for individual investors recognized under Category III and Category IV as highlighted below: Series I NCDs: Interest would be paid annually at the following rates of interest in connection with the relevant categories of NCD Holders as on the Record Date, on the amount outstanding from time to time, commencing from the Deemed Date of Allotment: Category of NCD Holder as on the Record Date Rate of Interest/Coupon (% per annum) (A) Additional Incentive on Any Record Date (% per annum) (B) Aggregate of Coupon and Additional Incentive on any Record Date (% per annum) =(A)+(B) NCD Holder who is an 10.60% 0.90% 11.50% Individual NCD Holder who is a Non Individual* 10.60% Nil 10.60% * NCD Holders who are Non Individuals SHALL NOT be eligible for the additional incentive of 0.90% per annum for Series I NCDs held on any Record Date. Series II NCDs: Interest would be paid annually at the following rates of interest in connection with the relevant categories of NCD Holders as on the Record Date, on the amount outstanding from time to time, commencing from the Deemed Date of Allotment: 3
Category of NCD Holder as on the Record Date Rate of Interest/Coupon (% per annum) (A) Additional Incentive on Any Record Date (% per annum) (B) Aggregate of Coupon and Additional Incentive on any Record Date (% per annum) =(A)+(B) NCD Holder who is an 10.75% 1.00% 11.75% Individual NCD Holder who is a Non Individual* 10.75% Nil 10.75% * NCD Holders who are Non Individuals SHALL NOT be eligible for the additional incentive of 1.00% per annum for Series II NCDs held on any Record Date. Series III NCDs: In case of Series III NCDs, no interest shall be payable. However, Series III NCDs shall be redeemed at the end of thirty six months from the Deemed Date of Allotment at the following amounts based on the relevant categories of NCD Holders as on the Record Date for redemption of the Series III NCDs: Category of NCD Holder as on the Record Date Face Value (Rs. Per NCD) (A) Premium Amount (Rs. per NCD) (B) Aggregate Amount Payable at the Time of Redemption (Rs. per NCD) =(A)+(B) NCD Holder who is an 1,000.00 386.20 1,386.20* Individual NCD Holder who is a Non Individual 1,000.00 352.90 1,352.90* * subject to applicable tax deducted at source, if any. Series IV NCDs: In case of Series IV NCDs, no interest shall be payable. However, Series IV NCDs shall be redeemed at the end of sixty months from the Deemed Date of Allotment at the following amounts based on the relevant categories of NCD Holders as on the Record Date for redemption of the Series IV NCDs: Category of NCD Holder as on the Record Date Face Value (Rs. Per NCD) (A) Premium Amount (Rs. per NCD) (B) Aggregate Amount Payable at the Time of Redemption (Rs. per NCD) =(A)+(B) NCD Holder who is an 1,000.00 743.30 1,743.30* Individual NCD Holder who is a Non Individual 1,000.00 666.65 1,666.65* * subject to applicable tax deducted at source, if any. 4
Q14. What is the interest on application money on allotted amount? Ans: Our Company shall pay interest on application money on the amount allotted, at the rate of 7.00% per annum. This shall be subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, as applicable, to any applicants to whom NCDs are allotted, other than ASBA applicants, pursuant to the Issue from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment. Q15. What is the interest on application money on refunded money? Ans: Our Company shall pay interest on application money which is liable to be refunded to the applicants, other than ASBA applicants, in accordance with the provisions of the Debt Regulations and/or the Companies Act, or other applicable statutory and/or regulatory requirements, subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, as applicable, from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment, at the rate of 2.50% per annum. Such interest shall be paid along with the monies liable to be refunded. Interest warrant will be dispatched / credited (in case of electronic payment) along with the Letter(s) of Refund at the sole risk of the applicant, to the sole/first applicant. Q16. What are the tenors of these NCDs? Ans: The NCDs issued pursuant to this Issue have the following tenor: - Series I NCDs is thirty six months from the Deemed Date of Allotment - Series II NCDs is sixty months from the Deemed Date of Allotment - Series III NCDs is thirty six months from the Deemed Date of Allotment - Series IV NCDs is sixty months from the Deemed Date of Allotment Q17. Who can invest in to these NCDs and what is the basis of allotment? Ans: Categories I II III IV Institutional Investors Non Institutional Non Reserved Reserved Individual Investors Individual Investors Investors Resident Public financial institutions, statutory Companies, bodies corporate and societies, registered Resident Indian individuals who apply for NCDs aggregating to Resident Indian individuals who apply for NCDs aggregating to 5
corporations, commercial banks, co-operative banks and regional rural banks incorporated in India and authorized to invest in the NCDs; Indian Provident funds, pension funds, superannuation funds and gratuity funds, authorized to invest in the NCDs; Indian venture capital funds registered with SEBI; Indian insurance companies registered with the IRDA; National Investment Fund; and Indian Mutual Funds registered with SEBI. under the applicable laws in India, and authorized to invest in the NCDs; Trusts settled under the Indian Trusts Act, 1882, public/private charitable/religious trusts settled and/or registered in India under applicable laws, which are authorized to invest in the NCDs; Resident Indian scientific and/or industrial research organizations, authorized to invest in the NCDs; Partnership firms formed under applicable laws in India in the name of the partners, authorized to invest in the NCDs; and Limited Liability Partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009), authorized to invest in the NCDs. a value more than Rs. 5 Lakhs, across all Series of NCDs; and Hindu Undivided Families through the Karta who apply for NCDs aggregating to a value more than Rs. 5 Lakhs, across all Series of NCDs a value not more than Rs. 5 Lakhs, across all Series of NCDs; and Hindu Undivided Families through the Karta who apply for NCDs aggregating to a value not more than Rs. 5Lakhs, across all Series of NCDs Q18. What is the issue period and timing? Ans: Issue opens on September 12, 2012 and closes on September 26, 2012*. *The subscription list for the Issue shall remain open for subscriptions during banking hours for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided at the discretion of the duly authorised committee of Directors of our Company subject to necessary approvals. In the event of such early closure or extension of the Issue, our Company shall ensure that notice of the same is provided to the prospective investors, on or before such early date of 6
closure or the initial Closing Date, as the case may be, through advertisement/s in a leading national daily newspaper. Q19. What is the application amount and mode of payment to be payable on application? Ans: The minimum application size for each application for NCDs would be Rs. 10,000/ (for all Series of NCDs namely, Series I Series II, Series III and Series IV NCDs either taken individually or collectively) and in multiples of Rs. 1,000/ thereafter Applicants can apply for any or all series of NCDs offered hereunder (any/all options) using the same Application Form. Applicants are advised to ensure that applications made by them do not exceed the investment limits or maximum number of NCDs that can be held by them under applicable statutory and or regulatory provisions. The full application amount is payable on application. In case of allotment of lesser number of NCDs than the number of NCDs applied for, our Company shall refund the excess amount paid on application to the applicant For Non-ASBA Applicants: All cheques/ bank drafts accompanying the Application should be crossed A/c Payee only and must be made payable to Escrow Account SCUF NCD Public Issue. Outstation cheques, post dated cheques and cheques/ bank drafts drawn on banks not participating in the clearing process will not be accepted and Applications accompanied by such cheques or bank drafts will be rejected. Cash/ stockinvest/ money orders/ postal orders will not be accepted. Please note that cheques without the nine digit Magnetic Ink Character Recognition ( MICR ) code are liable to be rejected. For ASBA Applicants: The ASBA Applicants shall specify the ASBA Account number in the Application Form. ASBA Applicants should ensure that they have funds equal to the Application Amount in the ASBA Account before submitting the ASBA Application. Q20. What are the documents/certificates that need to be filed along with the Application Form? Ans: All applicants have to mention their PAN Number. The Applicant or in the case of Applications made in joint names, the first Applicant, should mention his or her Permanent Account Number (PAN) allotted under the IT Act. 7
Any Application Form, without the PAN is liable to be rejected, irrespective of the amount of transaction. It is to be specifically noted that the Applicants should not submit the GIR number instead of the PAN as the Application is liable to be rejected on this ground. In case of applications by/under: In case of applications by/under: Mutual Funds Commercial Banks, Co-operative Banks and Regional Rural Banks Insurance Companies Trusts Public Financial Institutions, Statutory Corporations, which are authorized to invest in the NCDs Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorized to invest in the NCDs Following documents are required: certified true copies of: (i) SEBI Registration Certificate and trust deed (ii) resolution authorising investment and containing operating instructions and (iii) specimen signatures of authorized signatories certified true copies of: (i) Board Resolution authorising investments; (ii) Letter of Authorisation. certified copies of: (i) Memorandum and Articles of Association (ii) Power of Attorney (iii) Resolution authorising investment and containing operating instructions (iv) Specimen signatures of authorized signatories. (i) certified copy of the registered instrument for creation of such trust; (ii) Power of Attorney, if any, in favour of one or more trustees thereof; (iii) such other documents evidencing registration thereof under applicable statutory/regulatory requirements. certified true copies of: (i) Any Act/ Rules under which they are incorporated; (ii) Board Resolution authorising investments; and (iii) Specimen signature of authorized person. certified true copies of: (i) Any Act/Rules under which they are incorporated; (ii) Power of Attorney, if any, in favour of one or more trustees 8
Indian Venture Capital Funds National Investment Fund Companies, bodies corporate and societies registered under the applicable laws in India Indian Scientific and/or industrial research organizations, which are authorized to invest in the NCDs Partnership firms formed under applicable Indian laws in the name of the partners and Limited Liability Partnerships formed and registered thereof; (iii) Board Resolution authorising investments; (iv) such other documents evidencing registration thereof under applicable statutory/regulatory requirements; (v) Specimen signature of authorized person; (vi) certified copy of the registered instrument for creation of such fund/trust; and (vii) Tax Exemption certificate issued by Income Tax Authorities, if exempt from Tax. certified true copies of: (i) (ii) SEBI Registration Certificate; Resolution authorising investment and containing operating instructions; and (iii) Specimen signatures of authorised signatories. certified true copies of: (i) resolution authorising investment and containing operating instructions; and (ii) Specimen signature of authorized person. certified true copies of: (i) Any Act/ Rules under which they are incorporated; (ii) Board Resolution authorising investments; and (iii) Specimen signature of authorized person. certified true copies of: (i) Any Act/ Rules under which they are incorporated; (ii) Board Resolution authorising investments; and (iii) Specimen signature of authorized person. certified true copies of: (i) Partnership Deed; (ii) Any documents evidencing registration thereof under applicable statutory/regulatory 9
under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009) Power of Attorney requirements; (iii) Resolution authorizing investment and containing operating instructions (Resolution); (iv) Specimen signature of authorized person. In case of Institutional Investors: A certified copy of the power of attorney or the relevant resolution or authority, as the case may be, along with a certified copy of the memorandum of association and articles of association and/or bye laws and/or charter documents, as applicable. In case of Non-Institutional Investors, Reserved Individual Investors and Non Reserved Individual Investors: A certified copy of the power of attorney Q21. What is the basis of allotment? How will allocation happen in case of oversubscriptions? Ans: (i) (ii) (iii) (iv) Applicants belonging to the Institutional Portion, in the first instance, will be allocated NCDs upto 10% of Overall Issue Size on first come first serve basis (determined on the basis of the upload of each Application into the electronic book of the Stock Exchange); Applicants belonging to the Non Institutional Portion, in the first instance, will be allocated NCDs upto 10% of Overall Issue Size on first come first serve basis (determined on the basis of the upload of each Application into the electronic book of the Stock Exchange); Applicants belonging to the Non Reserved Individual Portion, in the first instance, will be allocated NCDs upto 40% of Overall Issue Size on first come first serve basis (determined on the basis of the upload of each Application into the electronic book of the Stock Exchange); Applicants belonging to the Reserved Individual Portion, in the first instance, will be allocated NCDs upto 40% of Overall Issue Size on first come first serve basis (determined on the basis of the upload of each Application into the electronic book of the Stock Exchange); Allotments, in consultation with the Designated Stock Exchange, shall be made on a first-come firstserve basis, based on the upload of each Application into the electronic book of the Stock Exchange, in each Portion subject to the Allocation Ratio. 10
Under Subscription: If there is any under subscription in any Portion, priority in allotments will be given in the following order (in decreasing order of priority): (i) (ii) (iii) (iv) Reserved Individual Portion Non Reserved Individual Portion Non Institutional Portion Institutional Portion For each Portion, all Applications uploaded into the electronic book of the Stock Exchange on the same day would be treated at par with each other. Allotment within a day would be on proportionate basis, where NCDs applied for exceeds NCDs to be allotted for each Portion respectively. Allotments in case of oversubscription: In case of an oversubscription, allotments to the maximum extent, as possible, will be made on a first-come first-serve basis and thereafter on proportionate basis in each Portion, i.e. full allotment of NCDs to the Applicants on a first come first basis up to the date falling 1 (one) day prior to the date of oversubscription and proportionate allotment of NCDs to the Applicants on the date of oversubscription (determined on the basis of the upload of each Application into the electronic book of the Stock Exchange, in each Portion). Q22. What is the additional rate of interest for Senior citizens? Ans: No additional rates are offered for Senior citizens. Q23. Can an applicant make additional/multiple applications? Ans: Yes, additional applications are allowed. An Applicant is allowed to make one or more Applications for the NCDs for the same or other Series of NCDs, subject to a minimum application size of Rs. 10,000/- and in multiples of Rs. 1,000/- thereafter, for each Application. Any Application for an amount below the aforesaid minimum application size will be deemed as an invalid application and shall be rejected. However, multiple Applications by the same individual Applicant aggregating to a value exceeding Rs. 5 lacs shall be deem such individual Applicant to be a Non Reserved Individual Applicant and all such Applications shall be grouped in the Non Reserved Individual Portion, for the purpose of determining the basis of allotment to such Applicant. However, any Application made by any person in his individual capacity and an Application made by such person in his capacity as a karta of a Hindu Undivided family and/or as applicant (second or third applicant), shall not be deemed to be a multiple Application. For the purposes of allotment of NCDs under the Issue, Applications shall be grouped based on the PAN, i.e. Applications under the same PAN shall be grouped together and treated as one Application. Two or 11
more Applications will be deemed to be multiple Applications if the sole or first applicant is one and the same. For the sake of clarity, two or more applications shall be deemed to be a multiple Application for the aforesaid purpose if the PAN number of the sole or the first applicant is one and the same. Q24. Can an applicant make changes to his/her application? Ans: Applicants may revise/ modify their application details during the issue period, as allowed/permitted by the Stock Exchanges, by submitting a written request to the Lead Manager/ Lead Broker/ Sub-broker/ Trading Member/ SCSBS, as the case may be. In case of revision of Application during the Issue Period, ensure that you have first withdrawn your original Application and submitted a fresh Application. Revision of Applications is not permitted after the expiry of the time for acceptance of Application Forms on Issue Closing Date. Q25. What is the tax treatment of these NCDs? Ans: For resident NCD holder, interest received would be subject to tax at the normal rates of tax. Longterm capital gains arising on the transfer of listed debentures would be subject to tax at the rate of 10% of capital gains calculated without indexation of the cost of acquisition. Short term capital gains on the transfer of listed debentures, where debentures are held for a period of not more than 12 months would be taxed at the normal rates of tax. However, investors are advised to consider in his own case the tax implications in respect of subscription to the NCDs after consulting his tax advisor. Q26. Will there be TDS on the coupon interest paid to these NCDs holders? Ans: Interest received by the NCD Holders would be subject to tax at the normal rates of tax. No tax is deductible at source on any interest payable on securities issued by the Company in dematerialized form and listed on a recognized stock exchange in India In case of NCDs held in physical form, tax will not be deducted at source from interest payable on such NCDs held by the investor (in case of resident Individuals and HUFs), if such interest does not exceed Rs. 5,000 in any financial year. If interest exceeds the prescribed limit of Rs. 5,000 on account of interest on the NCDs, then the tax will be deducted at applicable rate Interest on application money and interest on refund of application money, shall be subject to TDS However, investors are advised to consider in their own case the tax implications in respect of subscription to the NCDs after consulting their tax advisor. 12
Q.27 Are the NCDs secured? Ans: The principal amount of the NCDs to be issued in terms of this Prospectus together with all interest due on the NCDs, as well as all costs, charges, all fees, remuneration of Debenture Trustee and expenses payable in respect thereof shall be secured by way of first and exclusive charge in favour of the Debenture Trustee on an identified immovable property and specified future receivables of our Company as may be decided mutually by our Company and the Debenture Trustee. Q28. Since the same NCD will have different yields to different classes of investors (Individuals and Non Individuals), how will the trading in secondary market happen? Will it impact liquidity? Will it impact listing gains? Ans: If the Individual holds the NCDs on the relevant record date, he is entitled to the additional incentive in terms of interest in case of Series I and II NCDs and redemption premium amount in case of Series III and IV NCDs respectively. We do not foresee any impact on the liquidity front due to the freely tradable nature of the NCDs and market making feature (subject to receipt of statutory approvals). We cannot comment on the listing gains. Q29. What happens when an Individual buys the NCD from a Non Individual in the secondary market? Will the new Individual investor get higher interest coupon/redemption premium? Ans: Yes, the new Individual will get higher interest coupon/redemption premium if the new Individual is a holder of the NCD on the relevant record date. Irrespective of the trading history of the NCDs, the Individual will be entitled to the additional incentive in terms of interest in case of Series I and II NCDs and redemption premium amount in case of Series III and IV NCDs respectively, if the Individual is a NCD holder on the relevant record date. Irrespective of the trading history of the NCDs, the Non Individual will not be entitled to the additional incentive in terms of interest in case of Series I and II NCDs and redemption premium amount in case of Series III and IV NCDs respectively, if the Non Individual is a NCD holder on the relevant record date. Q30. What is the impact of frequent fluctuations in policy interest rates? Ans: There is no impact of any fluctuations or changes in the policy rates by regulator as the investment would be at fixed interest rate, with an additional incentive for the Individual Investors, for 36 months and 60 months, as the case may be. 13
Q31. Can you explain the reason for this public issue of NCDs? Ans: The funds raised through this Issue will be used inter alia to finance our business operations, lending, investments, repay existing loans, business operations including capital expenditure, working capital requirements, meeting expenses of the Issue. Q32. Why should an investor invest in this NCD vis-à-vis a bank fixed deposit? Ans: Proposed NCDs are secured: The principal amount of the NCDs with all interest due on the NCDs, as well as all costs, charges, all fees, remuneration of Debenture Trustee and expenses payable in respect thereof shall be secured by way of first and exclusive charge in favour of the Debenture Trustee on an identified immovable property and specified future receivables of our Company as may be decided mutually by our Company and the Debenture Trustee. The NCDs offer an interest rate of 10.60% (in the case of NCDs with a tenor of 3 years) and 10.75% (in the case of NCDs with a tenor of 5 years) with an additional incentive of 0.90% (in case of 3 year NCDs) and 1.00% (in case of 5 years NCDs) for individual investors. Additionally, these NCDs will be listed on the NSE and the BSE. Q33. Your customer base comprises individual and/or small enterprise segment borrowers. Can you explain how do you manage the NPAs & defaults? Ans: The Company maintains an asset quality through the establishment of prudent credit norms, the application of stringent credit evaluation tools, limiting customer and security exposure and direct interaction with their customers. In addition to the credit evaluation and recovery mechanism, the asset-backed lending model and adequate asset cover has helped maintain low gross and net NPA levels. The Company s audit committee has constituted a policy for making provisions in excess of the amounts prescribed by RBI and they may make further provisions if they determine that it is prudent for a known and identified risk. Based on this policy, their provisions as at March 31, 2012 stood at Rs. 12,624.43 lacs as compared to the RBI required minimum provision of Rs. 7,245.14 lacs. Their Gross NPAs as a percentage of Total Loan Assets were 1.55 % as at March 31, 2012 and their Net NPAs as a percentage of Net Loan Assets was 0.38 % as at March 31, 2012. Q33.Who are the Promoters of the Company? Ans: Promoters of the Company are Shriram Retail Holdings Private Limited and Shriram Enterprise Holdings Private Limited. 14
Q34. Who owns the Shriram Trademark? Ans: The Trademark is owned by Shriram Ownership Trust. The Company is entitled to use the brand name Shriram and the associated mark pursuant to a license agreement dated April 1, 2010 between the Company and Shriram Ownership Trust. Q35. What is your future business strategy? Ans: The business strategies of the Company are as follows: 1. Further expand operations by growing the Company s business outlet network and introducing full range of products in all business outlets 2. Continue growth in the Loans to Small Enterprises Finance Segment 3. Continue to implement advanced processes and systems 4. Grow Shriram Housing Finance Limited s Housing Finance Business 15