SOM DATT FINANCE CORPORATION LIMITED
 
 Excerpts from the speech of Dr. Som Datt at the Second 
 Annual General Meeting.
 
 INDIAN ECONOMY
 
 The year 1994-95 has been a very good year for the Indian 
 Economy.  From on extremely low level of 0.9% in 1991-92, 
 the GDP growth rate had improved to 4.3% in both 1992-93 and 
 1993-94 and surged further to 5.3% during the year.  The 
 Corporate sector, too, had registered a significant increase 
 in profits.
 
 NON-BANKING FINANCE COMPANIES
 
 The Reserve Bank on India adopted a strategy to slash flow 
 of bank funds to finance companies.  It has also been 
 decided to scrap the limits on deposit mobilisation by 
 finance companies that achieve stipulated prudential norms 
 and procure satisfactory Credit rating.  Meanwhile, NBFC's 
 have registered impressive growth in their aggregate
 deposits in 1993-94.  Which in terms of provisional data as
 reported by 11,461 companies went up by Rs. 28,914 crore or
 22.1% to Rs. 1,59,772,80 crore at the end of March, 1993,
 against Rs. 1,30,853.40 crore reported by Rs. 11,318
 companies a year ago.  The maximum interest was lowered
 from 15% to 14%.  The registered financial companies were
 required to achieve a minimum capital adequacy norm of 6%
 by 31st of March, 1995 and 8% next year.
 
 PERFORMANCE OF THE COMPANY
 
 During the year under review, you will observe that your 
 Company had made Profit before Interest, Depreciation and  
 Tax to the tune of Rs. 292.58 lakhs, Profit after tax of Rs. 
 247.98 lakhs and Gross Income Rs. 361.77 lakhs as against 
 Rs. 46.84 lakhs, Rs. 38.25 lakhs and Rs. 57.97 lakhs 
 respectively for the first year operation of 5 months from 
 October, 1993 to March, 1994.  The Company has recommended a 
 Dividend of 20% as against the projected figure of 18% for 
 the year 1994-95.  Similarly, the EPS was achieved at 
 Rs. 4.33 (annualised as against the projected figure of 
 Rs. 2.54.)
 
 FIXED DEPOSIT SCHEME
 
 The Fixed Deposit Scheme of the Company has picked up very 
 well in the very first year of launching and the Company has 
 been receiving Fixed Deposits ranging between Rs. 60 lakhs to 
 Rs. 70 lakhs per month.  The minimum Credit Rating allowed 
 by `CARE' (Credit Analysis & Research Limited), i.e., `BBB' 
 (Sufficient Safety Principal & Interest) has also been 
 upgraded to FA-(Adequate Safety for Principal & Interest) on 
 the basis of Audited results submitted to them.  The Company 
 has also complied with the minimum capital adequate norm of 
 6% by 31st March, 1995 as stipulated by the RBI.
 
 PUBLIC ISSUE
 
 The maiden Public Issue of your Company was a grand success 
 & was oversubscribed 12.49 times.  I personally feel obliged 
 for the trust reposed by all of you in this Group and shall 
 ensure that your expectations are not belied.
 
 FUTURE PROSPECTS
 
 Your Company has decided to enter the market in the field of 
 financing the commercial as well as non-commercial vehicles.  
 It is also planned to open branches of the Company in all 
 the Metropolitan cities for expanding the operation of the 
 Company.  After assessing the performance of these branches, 
 the areas would be widened.
 
 NATIONAL STOCK EXCHANGE MEMBERSHIP
 
 NSE has granted permission and a new Company has been 
 launched by the name of Som Datt Securities Ltd. which will 
 hold the Membership of National Stock Exchange Limited.
 
 DEVELOPMENT IN THE GROUP
 
 Som Datt Group is poised to expand from construction 
 activities to other areas.  The Group has already tied up 
 for its Brewery Project with one of the world's renowned 
 Beer producer Lowenbrau of Germany to set up a project for 
 manufacture of Beer in India.  The foreign collaboration 
 agreement has been signed with them and it is expected that 
 the commercial production may start by April, 1996.  The 
 Group has also planned to venture in the field of Oil & 
 Oleoresin extraction from spices using the state-of-art 
 technology in collaboration with Canadian Company, namely, 
 Norac Industries Inc.  This technology is proposed to be 
 inducted in the country for the first time.  This is on EOU 
 project and the foreign party would provide marketing 
 arrangement up 75% of the production for an initial period 
 of 5 years.  The new company would be set-up under the name 
 of Som Datt Norac Hightech Industries Ltd.  The Group has 
 Global Vision and is making strenuous efforts to set up 
 other projects as envisaged above.
 
 Future Projects :
 
 * Breweries - Tie up with Lowenbrau
 
 * Hydro Carbon  
 
 * Yarns
 
 * Rubber Tyres
 
 * Packaging
 
 * Pharmaceuticals
 
 * Spices
 
 ACKNOWLEDGEMENT
 
 I would like to thank my fellow colleagues on the Board, the 
 employees, all financial services institutions & Brokers.  I 
 wish to thank the bankers of the Company for the help and 
 guidance in times of need.  Last but not the least, my 
 sincere thanks to our valuable investors for their 
 whole-hearted support and trust in SOM DATT GROUP.  I am 
 sure that your support will always act as guidance spirit in 
 further diversification.
  
 SOM DATT GROUP
 
 56-58 Community Centre, 
 East of Kailash, 
 New Delhi-110055
 
 Growing Diversifying