Back Ground
 
 Shriram City Union Finance Limited (SCUFL) was incorporated on 27th
 March 1986, as a Private Limited Company and became a Public Limited
 Company on 29th October 1988. The Company is a Non-Banking Finance
 Company registered with Reserve Bankof India.
 
 1. Particulars of Secured Loans
 
 a) Privately placed Redeemable Non-convertible Debentures ofRs.1,000/-
 each (Retail) Secured by equitable mortgage of title deeds of immovable
 property.  Further secured by charge on plant and machinery, furniture
 and other fixed assets of the Company, charge on Company''s
 hypothecation loans, other loans, advances and investments of the
 Company subject to prior charges created or to be created in favor of
 the Company''s bankers, financial institutions and others.
 
 These Debentures are redeemable at par over a period of 12 months to
 160 months from the date of allotment depending on the terms of the
 agreement. The earliest date of redemption is April 1, 2011 (March 31,
 2010; April 1, 2010). The last date of redemption is October 25, 2017
 (March 31, 2010; October 25, 2017).
 
 Debentures may be bought back subject to applicable statutory and /or
 regulatory requirements, upon the terms and conditions as may be
 decided by the Company. The Company may grant loan against the security
 of Non Convertible Debentures upon the terms and conditions as may be
 decided by the Company and subject to applicable statutory and/or
 regulatory requirements.
 
 2. Subordinated Debt
 
 The Company has as on 31.03.2011 subordinated debt bonds amounting to
 Rs. 53272.33 Lacs (March 31,2010: Rs. 53002.95 Lacs) with coupon rate
 of 7.00% to 13.00% Per annum which are redeemable over a period of 60
 months to 216 months.
 
 3. Gratuity and other post-employment benefit plans:
 
 The Company has an unfunded defined benefit gratuity plan. Every
 employee who has completed five years or more of service gets a
 gratuity on separation at 15 days basic salary (last drawn salary) for
 each completed year of service.
 
 4. Related Party Disclosures
 
 Related Parities have been identified by the Management and relied upon
 by the auditors.
 
 Subsidiary
 
 Shriram Housing Finance Limited (from 9th November 2010)
 
 Shriram Non-Conventional Energy Limited (till 26th June 2009)
 
 Enterprises having significant influence over the Company
 
 Shriram Enterprise Holdings Private Limited 
 
 Shriram Retail Holdings Private Limited 
 
 Shriram Capital Limited 
 
 Shriram Ownership Trust TPG India Investments I Inc.
 
 Key Managerial Personnel
 
 R Kannan Managing Director
 
 5. In accordance with the Reserve Bank of India circular no.
 RBI/2006-07/225 DNBS (PD) C.C No.87/03.02.2004/2006-07 dated January
 4,2007, the Company has created a floating charge on the statutory
 liquid assets comprising of investment in Government Securities to the
 extent of Rs. 101.45 Lacs ( March 31,2010: Rs:101.45Lacs) in favour of
 trustees representing the publicdeposit holders ofthe Company.
 
 5. Contingent Liabilities not provided for 
 
                                                   (Rs. in lacs)
 
                                              As at           As at
 
                                     March 31, 2011  March 31, 2010
 
 Guarantees issued by the Company             6.81           6.81
 
 Guarantees issued by others               1942.77        1942.77
 
 6. Income Tax/Wealth Tax/Service Tax/Fringe Benefit Tax
 
 Disputed Wealth Tax/Service Tax demands contested in appeal as on March
 31st, 2011.  Wealth tax- Rs. 1.76 lacs (March 31st 2010 : Rs.1.76 lacs)
 Service Tax - Rs.1553.08 Lacs (March 31st 2010 : Rs.1553.08 lacs)
 However provision is made in the books for any liability that may
 arise.
 
 The expected volatility was determined based on historical volatility
 data equal to the NSE volatility rate of Bank Nifty which is considered
 as a comparable peer group of the Company. To allow for the effects of
 early exercise it was assumed that the employees would exercise the
 options within six months from the date of vesting in view of the
 exercise price being significantly lowerthan the market price.
 
 7. Derivative Instruments:
 
 The Notional principal amount of derivative transactions outstanding as
 on March 31 2011 for interest rate swaps Rs. 12500 lacs (March 31
 2010-12500 lacs).
 
 8. Supplementary Statutory Information
 
 8.1 Managing Director''s Remuneration
 
 The computation of profits under section 349 of the Act has not been
 given as no remuneration / commission is payable to the Managing
 Director.
 
 9.  Additional information pursuant to the provisions of paragraphs 3
 4C and 4D of Part II of schedule VI to the Act
 
 The Company does not have licensed capacity as it is a Non Banking
 Finance Company.
 
 10.  Previous Year Comparatives
 
 The figures for the previous year have been regrouped and reclassified,
 wherever necessary to conform to current year''s classification.