Dear Shareholders
 
 The rapid, linear growth path of the Indian economic landscape is an
 uncontested fact.
 
 Growth, however, is achieved in the true sense only when it is for
 everyone. Only when the lowest common denominator of the society
 benefits from the dividends of growth does it reach its true
 objectives. Only when development reduces the divide between the
 various strata that exist in society is it considered beneficial. A
 country progresses only when its constituents are upwardly mobile.
 
 In short, true growth includes one and all.
 
 However, it is not the sole responsibility of the government or policy
 makers to drive the engine of growth. Industry needs to be an equal
 participant in creating an atmosphere of opportunity and economic self
 dependence for all. It is imperative that an increase in prosperity
 levels be facilitated through the creation of industrial
 infrastructure, service opportunities and a broad based entrepreneurial
 culture that spurs further growth.
 
 At Shriram Transport, we have modelled our business around this concept
 of inclusive growth, by focusing not on the target group being already
 pursued by financial institutions but that which are outside the
 influence of economic resurgence.  Therefore, even before the concepts
 of discovering the fortune at the bottom of the pyramid and reaching
 at the grassroots came in vogue, we were working towards supporting an
 entire generation of entrepreneurs to take a leap of faith in the world
 of enterprising endeavour and prosperity. We positioned ourselves in
 the world of helping the national road logistics industry by financing
 pre- owned trucks across the country.
 
 There is, however, a long way to go. The Indian economy is expected to
 continue to grow at a rapid pace in the coming years. This growth to
 sustain would need large-scale development of infrastructure. The
 Government of India has already realised the need and has increased the
 total allocation for infrastructure development to Rs.  19,60,000 cr in
 its eleventh five year plan 2007-12.  This is expected to create
 additional demand for new commercial vehicles, at the same time would
 increase demand for pre-owned commercial vehicles in wake of better
 logistics, increased production and large-scale infrastructure
 creation. We expect the market for pre-owned commercial vehicles to
 increase faster than new vehicles as increased demand for vehicles
 would result in increased freight rate and better earnings of drivers,
 leading to a surge in the first time users and small truck owners. The
 impact of this growth is also going to create higher demand for various
 other commercial vehicles - passenger commercial vehicles, tractors and
 construction equipment.
 
 Our consistent performance and growth is testimony to the strengths we
 have infused our business with. However, in order that we remain
 sustainable and harness the opportunity landscape, we have invested our
 organisation with people, systems and processes. These initiatives will
 surely help us in countering any adversity in our external operating
 environment. We view with concern the rising interest rate scenario
 that prevails across the world today, but are confident that we will
 continue to remain competitive.
 
 The year 2007-08 was important for Shriram Transport. We produced good
 results, in a year when the Indian auto sector performed unevenly. We
 made excellent progress increasing our customer base, enhancing our
 asset base and introducing new verticals and products in making the
 growth sustainable for future years. And most significantly, we
 continued to execute well in all of our markets, creating value for our
 customers, our communities, our employees - and you, our shareholders.
 
 Since our inception, we have worked hard to build a sustainable and
 scalable business. We will continue to remain on the path of being a
 catalyst for the growth of India. We are equally committed to growing
 shareholder value and being a responsible corporate citizen. I seek
 your support and encouragement in this journey.
 
                                                      Best regards,
                                                       Arun Duggal, 
                                                          Chairman