Dear Members,
 
 The Directors have pleasure in placing before you their Twenty Fifth
 Annual Report on the business and Operations of the Company together
 with the Accounts for the year ended 31st March, 2011.
 
 FINANCIAL PERFORMANCE                                  (Rs. in lacs)
 
                                             Year ended     Year ended
 
                                         March 31, 2011 March 31, 2010
 
 Profit before Depreciation and Taxation       36807.50       29090.63
 
 Less: Depreciation                              747.41         464.77
 
 PROFIT BEFORE TAX                             36060.09       28625.86
 
 Less: Provision for taxation                  12001.24        9200.00
 
 PROFIT AFTER TAX                              24058.85       19425.86
 
 Add: Profit brought forward from 
 Previous Year                                 22730.09       12003.01
 
 Profit available for appropriation            46788.94       31428.87
 
 APPROPRIATIONS                                        (Rs. in lacs)
 
                                             Year ended      Year ended 
 
                                         March 31, 2011  March 31, 2010
 
 General Reserve                                2410.00         1940.00
 
 Statutory Reserve                              4810.00         3890.00
 
 Capital Redemption Reserve                           -               -
  
 Dividend (interim Rs.2.5 and final Rs 3.5) 
 on Equity Shares of Rs. 10/-
 each fully paid-up                             2970.04         2456.92
 
 Tax on Dividend                                 486.59          411.86
 
 Balance Carried to Balance Sheet              36112.31        22730.09
 
 BUSINESS SCENARIO AND BUSINESS OPPORTUNITIES
 
 The timely support through a series of economic measures and by active
 governmental monitoring of the Indian economy, it registered speedy
 recovery. India managed to grow at 8.00 percent in 2009-10 and 6.80
 percent in 2008-09 in the face of global melt down. The growth during
 the financial year 2010-11 is reported to be about 8.60 percent. Indian
 economy derived major benefits from robust domestic demand and a
 revival in investor and consumer sentiment. This contributed for
 stronger capital inflows into the country.The Indian economy is
 projected to grow 8.50 percent - 9.00 percent in 2011-12. The volatile
 interest rates could pose a challenge. The growth in Retail Finance
 disbursement would largely be driven by increasing propensity to
 consume.increasing affordability.The penetration in retail finance
 still remains low.
 
 World over, the Micro Small and Medium Enterprises or MSMEs have been
 recognised as engines of economic growth. In India, MSMEs are thesecond
 largest source of employment after agriculture. They account foralmost
 40 per cent of industrial production, 95 per cent of the industrial
 units, 34 percent of the exports and manufacture over 6000 products. It
 is estimated that to create one job in the MSME sector, only Rs 72,000
 is required as against Rs 5.5 lacs required in the large organised
 sector.
 
 It is estimated that to achieve the target of 10 per cent growth by
 2011, the MSME sector needs to grow at 12%.There are some major hurdles
 which do notallowthissectorto flourish well.
 
 The first major hurdle is that the credit availability is low for this
 sector. It is estimated that the unorganised sector comprises 95% of
 the total industrial units, employing more than 65 million people. Yet
 only 8% of the total bank credit finds its way into this sector.
 Arranging collateral security, documentation etc makes clearance of the
 loan all the more difficult. Inevitably, many of these small units fall
 into the vicious cycle of debt and poverty and eventually many of them
 perish.
 
 Formal sector has the option to raise huge sum from the money market,
 while the unorganised sector doesn''t have any such opportunity. In the
 11 th Five Year Plan, Planning Commission estimates that in the next
 five years the total working capital and loan requirement by the
 MSMEs/unorganised sector would be 2,96,000 crore. This huge credit
 requirement cannot be met by the banking system alone. The Company
 finds here huge scope in financing this sector of the economy through
 it''s product SMALL BUSINESS LOANS.
 
 The exceptional growth in gold loan disbursements (loans against gold
 jewellery) in recent years, the under- penetrated nature of this
 market, being secured and negligible NPA levels make the lending
 against gold business attractive within the banking/NBFC space.
 
 The gold loan market is pre-dominantly un-organised lending against
 this collateral, Indian households are estimated to have a gold holding
 of anywhere between 18,000 and 20,000 tonnes. Given that gold is not an
 income- generating asset, the only means to monetise gold holdings is
 through loans. Theoretically, this translates into a Rs 30 lac crore
 lending business opportunity (assuming a 75 per cent loan-to-value).
 The organised market size could be about Rs 38,000 crore (March 2011).
 This leaves a huge space for Financing against gold and Jewellery.  The
 Company with its wide-spread business outlets sees huge opportunities
 of growth, particularly in the small business loans and loan against
 gold.
 
 OPERATIONS
 
 Income from Operations for the period under consideration was
 Rs.132091.19 lacs as against Rs.110284.71 lacs forthe previous year
 posting an increase of 19.77% year-on-year basis.
 
 The Company earned a Profit before Tax of Rs.36060.09 lacs for the year
 ended 31s,March, 2011, registering an increase of Rs.7434.23 lacs
 (25.97%) over the previous year.which was at Rs 28625.86 lacs. The
 profit after tax at Rs.24058.85 lacs grew 23.85 % than the previous
 year (Rs 19425.86 lacs).
 
 RESOURCES INCLUDING FIXED DEPOSITS
 
 The Resource of the Company stood as under: 
 
                                                        (Rs in Lacs)
 
           Amount  Amount of  Amount of  Amount of  Amount of  Amount of
 Year 
 ending on     of  Privately  Subordina
                                   -ted Commercial  Listed Non Term Loan
            Depos
             -its     placed
                         Non       Debt     Papers Convertible
                     Convert
                       -ible                        Debentures
                   Debentures
 
 31st 
 March,
 2011      55.10   155294.31   53272.33   22500.00   64583.33  302177.28
 
 31st 
 March, 
 2010     100.74   154073.77   53002.95       NIL    20000.00  114164.17
 
 As on 31st March 2011,113nos deposits amounting to Rs. 20.83 lacs had
 matured for payment and were due to be claimed or renewed. Subsequent
 follow-up for repayments/renewals resulted in the number reducing to 77
 deposits amounting to Rs.13.47 lacs. However there are no deposits
 which had matured and which were claimed but not paid by the Company.
 Steps are continuously being taken to arrange for repayment/renewal of
 deposits.
 
 DIVIDEND: The Board of Directors declared Interim and Final Dividend
 based on the financials of the Company.  The Final Dividend recommended
 by the Board are subject to approval by the Members of the Company.
 The Details of Dividend are given below.
 
 For the Year 2010-11
 
                  No of  Dividend  Dividend   Dividend     Total  Date of
                 Shares per Share   Amount      Tax      Outflow  payment
                          (Rs)      (Rs in 
                                      lacs)    (Rs in 
                                                 Lacs)    (Rs in 
                                                           Lacs)
 
 Interim 
 Dividend      49392739    2.50     1236.25    205.33   1441.58   25.11 
                                                                  2010
 
 Final 
 Dividend      49536877    3.50     1733.79    281.26   2015.05
 
 Total                     6.00     2970.04    486.59   3456.63
 
 For the year 2009-2010
 
                  No of  Dividend  Dividend   Dividend     Total  Date of
                 Shares per Share   Amount      Tax      Outflow  payment
                          (Rs)      (Rs in 
                                      lacs)    (Rs in 
                                                 Lacs)    (Rs in 
                                                           Lacs)
 
 Interim 
 Dividend      49113850    2.00     982.28     166.94    1149.22  23.11.
                                                                  2009
 
 Final 
 Dividend      49154700    3.00    1474.64     244.92    1719.56  18.08.
                                                                  2010
 
 Total                     5.00    2456.92     411.86    2868.78  
 
 An amount of Rs.22.11 lacs (previous year Rs. 16.87 lacs) is lying in
 unpaid Equity dividend account of the Company. During the financial
 year an amount of Rs 0.10 lacs (Previous year Rs 0.36 lacs) was
 transferred to Investor Education & Protection Fund.
 
 SHARE CAPITAL AND EMPLOYEE STOCK OPTION SCHEME
 
 The Company has got Employees Stock Options Scheme (ESOS).ESOS was
 approved by the Members at the Extra-Ordinary General Meeting held on
 dt 30th October, 2006.ESOS was implemented and options were granted to
 the employees in accordance with the Securities & Exchange Board of
 India (Employees Stock Option Scheme & Employees Stock Purchase Scheme)
 Guidelines,1999. The Remuneration & Compensation Committee constituted
 in accordance with the SEBI Guidelines administers and monitors the
 Scheme.
 
 During the year under review, the company allotted 3,82,177 Nos of
 fully paid up equity shares of the face value of Rs.10/- each to its
 employees on exercise of stock options by them.
 
 The details of Shares issued and allotted under ESOS and the
 disclosures required under Clause 12 under SEBI Guide lines as on 31st,
 March, 2011 are set out in Annexure to this report.
 
 Certificate from the Auditors of the Company certifying that the
 Company''s ''Employees Stock Options Scheme 2006'' is implemented in
 accordance with the SEBI (Employees Stock Option Scheme and Employees
 Stock Purchase Scheme) Guidelines, 1999 and in accordance with the
 resolution of the members passed attheirgeneral meeting, is attached
 tothis report.
 
 HUMAN RESOURCE
 
 The Company strongly believes that the human resource built up by it
 over the years is its most valuable asset.  In orderto strengthen
 them.internal and external trainings are imparted to them
 continuously.AII efforts are made to empower them continuously. The
 broader employee ownership of its share capital has contributed to a
 large extent on retaining its employees and has also impacted
 positively on the Company''s performance.
 
 SUBSIDIARY
 
 During the Financial Year ended 31st March, 2011, the Company
 incorporated a wholly owned subsidiary Company, Shriram Housing
 Finance Limited (SHFL) . SHFL was incorporated on 09th November, 2010
 and received its Certificate of Commencement of Business from the
 Registrar of Companies, Tamilnadu on 21st January, 2011. SHFL is a
 non-material unlisted subsidiary of the Company and is yet to commence
 business.SHFL has made applications to National Housing
 Bank(NHB)forobtainingCertificateof Registration.
 
 The Board of Directors by way of a resolution passed at it''s meeting
 held on May 26,2011 has given consent for not attaching the Balance
 Sheet of the Subsidiary to it''s Balance Sheet as per Section 212 of the
 Companies Act,1956 read with General Circular No.2/2011
 (51/12/2007-CL-lll dt 8th February 2011) of the Ministry of Corporate
 Affairs (MCA).Govt of India. A statement on Consolidated Financial
 Statement of the Company with that of the Subsidiary prepared in
 compliance with accounting standards and listing Agreements with Stock
 Exchanges is attached to this Annual Report.
 
 The Annual Accounts.Annual Reports and the related detailed information
 ofthesubsidiaryshallbemadeavailable to the Share holders of the Company
 and the Subsidiary Company seeking such information at any point of
 time.The Annual Accounts of the Subsidiary shall be kept at the
 Registered Office of the Company and at the Registered Office of the
 Subsidiary Company for inspection by any shareholder. The Company shall
 furnish hard copy of the detail of the Accounts of the Subsidiary to
 any Shareholder on demand.The annual accounts of the Subsidiary shall
 be available on the web site of the Company (www.shriramcitv.in) and
 shall be provided to Shareholders on their written requestto the
 Company.
 
 RESERVE BANK OF INDIA (RBI) GUIDELINES
 
 The Company continues to comply with all the requirements prescribed by
 Reserve Bank of India, as applicable to it.
 
 CORPORATEGOVERNANCE
 
 The Company had always endeavored to adhere to high standard of
 Corporate Governance and ensured its compliance.
 
 As required by the Listing Agreement entered into with Stock Exchanges,
 a report on Corporate Governance forming a part of this report together
 with the Certificate from the Auditors of the Company, confirming the
 compliance of the Corporate Governance are attached to this report.
 
 As required by Clause 49 (IV) (F) of the Listing Agreement with Stock
 Exchanges the Management Discussion Analysis on the business of the
 Company given as a separate statement forming a part of this report is
 attached.
 
 Further, as required under Clause 49 of the Listing Agreements
 certificate, duly signed by the Managing Director and Chief Financial
 Officer on the Financial Statements of the Company for the year ended
 March 31, 2011, was submitted tothe Board of Directors attheir meeting
 held on May 26,2011. The certificate is attached totheReporton
 Corporate Governance.
 
 CORPORATE GOVERNANCE VOLUNTARY GUIDELINES
 
 The Board of Directors have taken note of the ''Corporate Governance
 Voluntary Guidelines 2009'' issued by the Ministry of Corporate Affairs
 (MCA) in December 2009. Though these guidelines are recommendatory in
 nature, the Board is aware of its importance and would consider
 adopting the relevant provisions of these Guidelines as and when deemed
 appropriate.
 
 DIRECTORATE
 
 As per Section 256 of Companies Act,1956,Sri Arun Duggal, Chairman and
 Sri Mukund Govind Diwan, Director who retire by rotation at the ensuing
 Annual General Meeting , being eligible offer themselves for
 reappointment.  Brief profile, nature of expertise and directorship
 details are furnished to the members in the note accompanying the
 notice convening the Annual General Meeting.
 
 During the financial year, Smt Lakshmi Pranesh, Sri Puneet Bhatia, Sri
 K R Ramamoorthy and Sri Ranvir Dewan were appointed as Additional
 Directors of the Company. As per the provisions of Section 260 of the
 Companies Act, 1956, Smt Lakshmi Pranesh, Sri Puneet Bhatia, Sri K R
 Ramamoorthy and Sri Ranvir Dewan hold office upto the date of the
 ensuing Annual General Meeting of the Company. The Company has received
 notice from members proposing Smt Lakshmi Pranesh, Sri Puneet Bhatia,
 Sri K R Ramamoorthy and Sri Ranvir Dewan as candidate for the office of
 Director.
 
 Necessary resolutions with regard totheaboveare being placed atthe
 ensuing Annual General Meeting.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions Section 217(2AA) of the Companies Act, 1956
 the Directors to the best of their knowledge and belief confirm that :
 
 - In preparation of the Annual Accounts ,the applicable Accounting
 Standards have been followed along with proper explanation relating to
 material departures .
 
 - such accounting policies as mentioned in Schedule 17 of the Accounts
 have been selected and applied consistently and judgments and estimates
 have been made that are reasonable and prudent so as to give a true and
 fair view of the state of affairs of the Company as at 31st March, 2011
 and of the profit of the Company for the year ended on that date;
 
 - proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities;
 
 - the Annual Accounts have been prepared on a going concern basis.
 
 AUDITORS
 
 The Auditors M/s Pijush Gupta & Co., Chartered Accountants, retire at
 the conclusion of the ensuing Annual General Meeting and being eligible
 offer themselves for reappointment. The Company has received a
 certificate from them to the effect that their re-appointment as
 Auditors of the Companyif made.would be within the limits prescribed
 under Section 224(1 B) of the Companies Act, 1956 they hold valid peer
 review certificate as prescribed under Caluse 41 (1)(h)ofthe Listing
 Agreement with Stock Exchanges. Necessary resolution
 fortheirreppointment is proposed atthe ensuing Annual General Meeting.
 
 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 , forms part of the Directors'' Report.
 However, as per the provisions of Section 219 (1) (b) (iv) of the
 Companies Act, 1956 this Report and Accounts are being sent to all the
 Shareholders of the Company, excluding the statement of particulars of
 employees under Section 217 (2A) of the Companies Act, 1956. Any
 shareholder interested in obtaining a copy of the said statement may
 write to the Company Secretary atthe Secretarial Office of the Company
 and the same will be sent by post.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS & OUTGO
 
 PursuanttotherequirementunderSection217(1)(e)oftheCompaniesAct,1956,
 read with Companies (Disclosure of Particulars in the Report of the
 Board of Directors) Rules, 1988:
 
 a. The Company does not have any activity involving conservation of
 energy ortechnology absorption.
 
 b. The Company does not have any Foreign Exchange Earnings.
 
 c. Outgo under Foreign Exchange - Rs. 0.09 lacs (Previous Year: 0.08
 Lacs)
 
 ACKNOWLEDGEMENT
 
 The Board of Directors would like to place on record their gratitude
 for the guidance and cooperation extended by Reserve Bank of India,
 other statutory authorities and the Auditors of the Company. The Board
 takes this opportunity to express their sincere appreciation for the
 excellent patronage received from the Banks and Financial Institutions.
 The Board is pleased to record its appreciation for the enthusiasm,
 commitment, dedicated efforts of the employees of the Company at all
 levels. The Board is also deeply grateful for the continued confidence
 and faith reposed on us by the Shareholders, Depositors, Debenture
 holders and Debt holders.
 
                        For and on behalf of the Board of Directors
 
 Place: Chennai                           ARUN DUGGAL
 
 Date: 26th May, 2011                       CHAIRMAN