JULY 2013 SHRIRAM NEWS 1

VOL. 26 JULY 2013 ISSUE 3

SHRIRAM CAPITAL ANNOUNCES THE WINNERS OF SHRIRAM SANLAMAWARDS FOR EXCELLENCE IN FINANCIAL JOURNALISM

Shriram Capital, the holding company of the financialservices entities of the Shriram Group, announcedthe winners of ‘Shriram Sanlam Awards for Excellencein Financial Journalism’ at the awards functionheld in Chennai on May 27, 2013. The event waspresided over by the Hon’ble Union Finance Minister,Mr. P. Chidambaram.

There were three awards presented, the first beingthe ‘Lifetime Achievement Award’, (a cash award ofRs. 2.5 lacs), conferred on Mr. Swaminathan S. AnklesariaAiyar, Consulting Editor, The Economic Times.

The second award was presented to Mr. P.A. Seshan,an eminent journalist, who was inducted into the ‘Hall ofFame’. He was awarded for his extraordinary contributionto the field of Financial Journalism spanning over sevendecades. Rightfully called the ‘Bhishma Pitamaha’ ofFinancial Journalism, Mr. Seshan received a cash awardof Rs. 1.5 lacs.

The award in the category ‘Indian EconomicPolicy & Macro Economic Issues’ was presented toMr. Raghu Mohan from the ‘Business World’. He receiveda cash award of Rs. 1 lac.

There was no award declared in the category‘Financial Markets including Equity, Debt and ForeignExchange’ this year.

Speaking on the occasion, Mr. Arun Duggal,Chairman, Shriram Capital Ltd., said “We are very happyto have the Hon’ble Union Finance Minister with us topresent the first ‘Shriram Sanlam Awards for Excellencein Financial Journalism’. Shriram Capital recognizes themulti-faceted role that financial journalists play in settingup the knowledge base in reporting key issues of theIndian Economy.” Mr. Duggal, further added, “FinancialJournalists play a vital role in highlighting the keyissues, trends and policies to stakeholders in the financialecosystem. They highlight matters of financial importance

Mr. Swaminathan S. Anklesaria Aiyar receiving his award from the Hon’ble Union

Finance Minister Mr. P. Chidambaram

Mr. P.A. Seshan receiving his award from the Hon’ble Union Finance MinisterMr. P. Chidambaram

Mr. Venkatesh Babu, representing Business World receiving the award on behalf ofMr Raghu Mohan from the Hon’ble Union Finance Minister Mr. P. Chidambaram

JULY 2013 SHRIRAM NEWS 2

EDITORIAL

Dear Friend,

The floods in Uttarakhand have caused immense loss of life and property besides bringing untold misery to

thousands of survivors who are in immediate need of rehabilitation. Our heart goes out to those people who are

the helpless victims of a natural calamity of great magnitude. Let us resolve to do the best we can to wipe out

their tears and return them to a life of hope and secure future.

This issue brings to you news about recognition and rewards to three distinguished people for their

contribution in the field of financial journalism.

This and the other news stories about the group companies make interesting reading.

Yours truly,

Akhila Srinivasan

Editor

to the public and are influential in setting the larger agendafor the Indian Economy.”

A total of 64 nominations were received for selectionand they were deeply studied by a distinguished panelof independent jury members comprising of Mr. GopalSrinivasan, Chairman & Managing Director, TVS CapitalLtd., Dr. Nachiket Mor, Chairman, CARE India Pvt. Ltd.,Mr. Srinivasan K. Swamy, Chairman & ManagingDirector, RK Swamy BBDO, Ms. Ashu Suyash, CEO,L&T Mutual Fund and Mr. Adit Jain, Chairman, IMA Asia.The Jury Members, drawn from different fields, undertookthe selection process in a highly professional mannerleaving no doubt about their selection.

Institute of Financial Management and Research(IMFR), Chennai, played an important and independentrole in the selection process by scrutinizing thenominations and presenting them to the jury members fortheir consideration.

The event was a first-of-its-kind and turned out tobe a gala affair for the world of financial journalism inthe august presence of distinguished guests who gracedthe occasion.

Mr. P.A. Seshan, former Finance &Commerce Editor of ‘The Hindu’,popularly known for his ‘Leo’s News &Notes’ Column, joined The Hindu’ in1952 as a financial correspondent andwas the architect of The Hindu’s annualissue of ‘Survey of the Indian Industry’.Immensely respected, revered and

rewarded for his contributions to financial journalism,Mr. Seshan is the only centenarian of financial journalism

in the country today, and is rightly called the ‘BhishmaPitamaha’ of Financial Journalism.

Mr. Swaminathan S. AnklesariaAiyar, graduated from Delhi’sprestigious St. Stephen’s College andlater from Magdalen College, Oxford.A highly acclaimed financial journalist,Mr. Swami, as he is fondly known tohis friends and admirers, has held manya coveted position in a large selection

of reputed newspapers, periodicals and organizationsincluding ‘The Economist’, the World Bank and AsianDevelopment Bank.

Author of widely read and admired weekly column‘Swaminomics’ since 1990, in The Times of India,Mr. Swamy is also a social investor and runs theMukundan Charitable Trust and has authored manyresearch papers, several books, for which he hasbeen honoured with awards and acclaim from Indiaand abroad.

Mr. Raghu Mohan, a post-graduate in Political Science fromBombay University, joined TheFinancial Express and rose to be itsBanking Editor. He moved over toBusiness India and later on to BusinessWorld as its Senior Editor-Banking& Finance. In 2011, Mr. Raghu moved

to New Delhi as Chief of Bureau and currently holdsthe position of Senior Associate Editor coveringBanking & Finance.

Mr. P.A. Seshan

Mr. SwaminathanS. Anklesaria Aiyar

Mr. Raghu Mohan

JULY 2013 SHRIRAM NEWS 3

SHRIRAM AUTOMALL LAUNCHES CORPORATE WEBSITE FORPRE-OWNED VEHICLES & EQUIPMENT

In a bid to reach out to a wider customer base,Shriram Automall has successfully launched its corporatewebsite ( www.samil.in), which showcases an extensiverange of services dedicated to the transport industry. Theonline business further reflects the panorama of thecompany’s core values of customer service, transparencyand accessibility.

The website will help consumers overcome physicalbarriers by presenting them a chance to virtually checkthe options and physically verify the same at an offlinelocation. Only when the buyer is satisfied at both thejunctures, will a transaction be made. This approach willbe an advantage in addition to the offline only patternemployed. The website has a user-friendly interface andprovides a safe-secure platform for transactions. Customerscan visit the website and search for year-round events andparticipate in the ‘online’ and ‘physical bidding’ events.

Speaking on the occasion, Mr. Arun Duggal,Chairman, Shriram Capital, affirmed “ We are pleased toannounce the launch of an online website. Apart fromhelping us reach a wide customer base, the website willboost the market of pre-owned vehicle trading in India. Ithas been our constant endeavour to serve the largestnumber of people through our innovative products andservices. The SAMIL website will help us keep ourcustomers updated of the latest events, and guide them intheir trading decisions.”

Mr. Umesh Revenkar, Managing Director, ShriramTransport Finance Company Ltd, stated “ ShriramAutomall is a one-of-its-kind initiative for the trading ofpre-owned vehicles, which is gaining popularity by theday. The Automall has been a successful medium for‘Shriram Transport’; it has helped us create a new clientelebase and also fulfil the needs of existing valued customers.

In today’s world, social media is a very useful platformthat helps a business expand at a faster rate. We areconfident that our online vehicle trading segment willprovide an enhanced user experience to our customers,and also help us reach a wide spectrum of customers.”

SAMIL owns and operates offline physicalAutomalls for trading of pre owned vehicles & equipment,and is now on an onset of a new phase, confirmed Mr.Sameer Malhotra, CEO, Shriram Automall India Ltd. “TheVirtual marketplace for used vehicles and equipment isnow operational. An online solution like this will trulyrevolutionize the pre-owned vehicle market. The purposeof the website is to bring awareness to the multitude ofservices offered by SAMIL,” he stated.

India’s used vehicle segment & market holds greatpotential. But owing to lack of organization and due topersistent decentralization; prices and vehicle types varyto a great extent. SAMIL’s website will be instrumentalin bridging the gap between the buyers and the sellers.SAMIL envisions creating a platform to amplify itsoutreach by many folds.

An additional new feature on the site includes : •Introduction to private treaty • Wide range of Inventory •Enhanced search functionality • Better categorization tools• Social network integration

JULY 2013 SHRIRAM NEWS 4

MR. J.S. GUJRAL, M.D & CEO OF SHRIRAM GENERAL INSURANCESELECTED FOR THE SANLAM CEO AWARD

Mr. J.S. Gujral, M.D & CEO, Shriram GeneralInsurance Co. Ltd., has been selected for the SanlamGroup’s Sanlam CEO Award for his outstandingperformance during the year 2012. The Awardfunction was held on 21st May 2013 at Cape Town,South Africa.

The award is called the Sanlam CEO Award. Everyyear 5 people across the Sanlam Group (amongst all theirbusinesses in / outside South Africa) get selected foroutstanding performance. The performance must normallybe backed by actual figures, i.e. substantial cost savingsor significant profits.

The prize is an overseas trip of their choice for thewinner and spouse, fully sponsored by Sanlam.Approximate value is about Rs.700 000/-.

MR. R. THYAGARAJAN, FOUNDER - CHAIRMAN, THE SHRIRAM GROUP RECEIVES

THE PADMABHUSHAN AWARD FROM THE HON’BLE PRESIDENT OF INDIA

Mr. R. Thyagarajan, Founder - Chairman, The Shriram Group

receiving the Padmabhushan Award from the Hon’ble President of India

Mr. J.S. Gujral, MD & CEO, Shriram General Insurance Co.Ltd., being honoured

by Dr. Johan Van Zyl, CEO, Sanlam Group

Mr. R. Thyagarajan, Founder - Chairman,

The Shriram Group, received the Padma Bhushan Award

from the Hon’ble President of India,

Mr. Pranab Mukherjee at a function held at the

Rashtrapathi Bhavan, New Delhi on April 5, 2013.

Speaking on the occasion, Mr.Thyagarajan said,

“I am indeed privileged and honoured to receive the

‘Padma Bhushan’from the Hon’ble President of India. I

accept the award in all humility on behalf of the Shriram

Group and its stakeholders”

The New Head Office of Shriram Life InsuranceCo.Ltd. (SLIC) was inaugurated by Mr.T.S.Vijayan,Chairman, IRDA on 6th July 2013 at Hyderabad.Mr.R.Thyagarajan, Founder Chairman, Shriram Group,Mr.T.K.Banerjee, Vice Chairman, SLIC, Mrs.AkhilaSrinivasan, Managing Director, SLIC, Mr.Manoj Jain,CEO, SLIC, Mr.R.Sridhar, M.D. & CEO, Shriram Capi-tal Ltd., Mr.D.V.Ravi, M.D., Shriram Capital Ltd.Mr.R.Duruvasan, Managing Director,Shriram City UnionFinance Ltd., and other Senior Team Members of theShriram Group were present at the inauguration event.Thenew Head Office is located in the Financial District ofGachibowli in Hyderabad.

INAUGURATION OF THE NEW HEADOFFICE OF SHRIRAM LIFE INSURANCE CO.LTD.

JULY 2013 SHRIRAM NEWS 5

Mr. Gujral, has been with The Shriram for over twodecades. He is a member of Governing Council of the Group.Under his leadership SGI has emerged as a leading provider ofMotor Insurance solutions with successful deployment of over1700 employees in 133 branch offices at 91 locations acrossthe country. Mr. Gujral is known for offering excellent out ofbox Business solutions. He has been running the enterprise as abusinessman and has created five businesses including SGI asa new business from scratch. SGI within a short span of fiveand half years has scaled new heights of glory in generalinsurance industry.

Mr. Gujral’s contribution to the Group over the years hasbeen exemplary, be it in the Transport business or in the GeneralInsurance business. It will not be an exaggeration to say that hehas positioned the General Insurance business well to scalegreater heights in the near future.

Mr. Gujral holds Bachelors degrees in Commerce& Management and has done Advanced Management Programfrom Kellogg Business School, Chicagoand Executive Management program from IIM Ahemdabad.

Yes, it is a sweeping statement. Case studies that appearin magazines on financial planning are junk. Though theyappear to brilliantly illustrate the financial needs of an individualand provide solutions, they come with serious limitations. First,they go into such detailed planning that leaves us suffocating.Second, they focus ondesires (life goals, as they are named) ofan individual to work out plans whichoften fog the key elementsof financial planning. As it is, planning is ridden withassumptions and topping it with a long wish-list makes thecase more rickety. Consumption driven desire-centric financialplanning will only make the readers feel guilty that they arenot earning enough to meet their aspirations. Of course, wemay search for some perspectives in these elaborate planning

exercises, but I seriously doubt whether there can be someonewho religiously follow the charted out financial programme.

Personal financial planning should primarily focus on oneaspect-risk management.

There are two major risks that an individual mayexperience:

1. Dying too early.

How secured your dependents are if you are not there?

2. Living too long.

How secured you are after you cease to earn (retire)?

PERSONAL FINANCIAL PLANNING

Simply put, a financial planning exercise should addressthese two risks and suggest possible solutions to mitigate theconsequences of these risks.

Meet Shankar, 38, married to Sunitha and has a daughteraged 10. He runs two bakeries in Vijayawada and has plans tostart two more over the next two years. He owns a shop and aresidential house.

Shankar’s financials are as follows

Annual income: Rs. 6,00,000 Personal expenses:Rs. 50,000 Household expenses: Rs. 2,00,000

The risk of dying too early

Not everyone can live their entire productive life. Deathcan strike anyone, anytime. While death of an individual createsa huge emotional loss to dependents, there is also a significantconsequential loss - the loss in income that the individual earnsand contributes to his family. Though the actual loss of theindividual cannot be alleviated, the consequential loss can bemitigated by restoring the income generating capability throughinsurance.

One should start with Minimum Life cover (MLC). MLCis the insurance required to produce the quantum of money tomeet the living expenses of the family.In Shankar’s case, the annual household expenses are 2,00,000and he will continue to contribute for another 27 years (if heretires from work at 65). Assuming that expenses will increaseby 5% every year and that an investment corpus will give areturn of 12%, Shankar’s MLC will work out to 24 lakhs. Thismeans if Shankar is insured for 24 lakhs, this corpus will helpin producing the amount required for household expenses (Rs2,00,000) for the next 27 years.

The risk of living too long

Sathaayushmaan Bhava is a blessing only if you havecaring people around after you stop earning. If you are pennilessand no people around to take care, it is the most painful curseinflicted upon. Just remember, decent living costs money.Everyone wants to live a retired life with self-respect andfinancial independence. Maintaining your current lifestyle willcost more tomorrow than it costs today. This will not happenon its own. You need to plan to achieve this.

In the case of Shankar, his current annual householdexpenses are 2,00,000 and personal expenses are 50,000. If heis spending 2,50,000 per year now, in another27 years, he needs 9,36,000 to maintain the same lifestyle.Unless he builds a corpus of at least Rs 1 crore, he may not beable to fully meet his household expenses through the rest ofhis life.

What should he do to secure himself and his family?

1. First, he needs 24 lakhs insurance cover.He should take a single premium insurance policy with a coverof Rs 15,00,000 by paying a one-time 1,00,000 premium. Witha single premium policy, he need not worry about rememberingthe premium due dates. Life cover is non-stop till the end ofthe policy term. If policy fund gets depleted at an advancedage, he can top it up.

2. He still needs 9 lakhs more insurance to completelyprotect his family and one crore corpus for his retirement. Hecan take a regular premium policy with sum assured of 9 lakhsby paying Rs 60,000 per year. This can give him the requiredcorpus of Rs one crore in 27 years. And with these two policies,he can get Minimum Life Cover too.

Dr. R. Varun Kishore

JULY 2013 SHRIRAM NEWS 6

SHRIRAM GROUP OFFICE OPENED AT

AZAMGARH , UTTAR PRADESH and KASHIPUR, UTTARAKHAND

The concept of Group Office is to bring all the officesof the financial services companies of the Group in variouspremises into one space in each location, making it afinancial supermarket enabling a customer to avail variousservices offered by the Group companies.

The first such Group Office was opened onMarch 9, 2013 at Azamgarh in Uttar Pradesh by Mr. IqbalAbbasi, Executive Director & Chief Executive Officer(North, Central & East), STFC and Mr. V. Praveen Kumar,Executive Director (North), SCUF. The Group Officespace is shared by STFC, SCUF, SLIC and SISB.The features of the Group office are common amenities,infrastructure besides standardized interiors.

The Group Office concept is driven by ShriramCapital Ltd., which has plans to set up few more suchGroup offices in different parts of the country during the

year. Shriram Capital co-ordinates with all the Groupcompanies for space requirements and makes a groupoffice wherever some of the Group companies propose tocommence business / move move to new space. The GroupOffice is expected to provide significant branding valueto the Group and result in cost advantage to the Groupcompanies, besides bringing standardization.

The Group Office at Kashipur, Uttarakhand set upby Shriram Capital Ltd., was declared open on March 25,2013 by Mr. Iqbal Abbasi. The office will houseSTFC, SCUF and SLIC. Mr. V.V. Padmanabhan,GM-Infrastructure, Shriram Capital Ltd., Mr. N.K. Tyagi,AGM, STFC, Mr. Amit Bhatia, Senior Manager,(Uttarakhand & Himachal Pradesh), SCUF and Mr. SachinTaluja, Sr. Product Manager, SCUF participated in theopening ceremony.

Mr. Iqbal Abbasi at the inauguration

SHRIRAM CITY UNION FINANCE LTD OPENS 100th BRANCH AT KHANPUR

Shriram City opened its 100th branch at Khanpur,South Delhi in the first week of March 2013. It wasinaugurated by Mr. Arun Duggal, Chairman, ShriramCapital Ltd., and Mr. Y. S. Chakravarti, COO along withother officials was present on the occasion.

Though it was a private function, the event waswidely covered by several newspapers such as The Hindu,Business Line, Business Bhaskar and others which goesto prove the significant presence and popularity of ShriramCity in North Indian markets.

Mr. Arun Duggal, with the SCUF Team

JULY 2013 SHRIRAM NEWS 7

Shriram Value Services Pvt. Ltd., ( SVS )manages all their core application services of theGroup companies at their data center. To protectthe servers at the data center, SVS has adoptedlatest technologies in the field security.Considering the data handled are financial innature, additional care is taken on the security ofthe data.‘Fortinet Appliance’ has been deployedafter considering several security options. WithFortinet, incoming traffic can be easily managedand monitored through an analyzer on a regularbasis. Further, all devices are centrally managedby deploying a common policy and control of allthe branch location’s desktop. The technologyadopted by SVS has been appreciated by othercompanies andpartners as well.

In this regard, Fortinet has awarded SVS‘Best Network Security Implementation-2013’ ata function held in Dubai on 29th May 2013. Mr.V. Sendil

Kumar, Asst. Vice President-Data centerreceived the award from Mr. Patrice Perche,Sr. Vice President, International Sales of Fortinet.

Mr. V. Sendil Kumar receiving the award from

Mr. Patrice Perche at the function

SHRIRAM VALUE SERVICES AWARDED for

‘BEST NETWORK SECURITY IMPLEMENTATION - 2013’

MR. CASSIE KROMHOUT, COO, SHRIRAM LIFE VISITS VIZAG BRANCH

Shriram Life Chief Operating Officer, Mr.Cassie Kromhout, visited the best per forming branches (Vizag branch)

in renewals in AP and honoured the top performers.

JULY 2013 SHRIRAM NEWS 8

Editor :Akhila Srinivasan

Published by :Shriram Ownership TrustMookambika Complex, II Floor, 4, Lady Desika Road,Mylapore, Chennai - 600 004. India.

Printed at :Sai Shriram Printers,Gummidipoondi - 601 201.

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ANNUAL CONFERENCE OF SHRIRAM FORTUNE SOLUTIONS HELD AT GOA

The Annual Conference of the BusinessAssociates and the Star Club Convention of ShriramFortune Solutions was held at Goa. All members ofShriram Fortune Solutions Leadership Team werepresent on the occasion. Top three BusinessAssociates for the year were feliciated by Mr R.P.Singh, M.D. & CEO of the Company.

The delegates were addressed by Mr. R.P. Singh,Mr. R. Sundara Rajan, Mr. D.V. Ravi and otherdignitaries who congratulated the top performers ontheir exemplary achievement.

SFS Leadership team

Felicitation ceremony of Top Three Business AssociatesSFS top Business Associate Mr AP Goel Lighting the lamp

at Star Club Convention Goa