SHRIRAM TRANSPORT FINANCE COMPANY LIMITED. Business Responsibility Policy

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1 SHRIRAM TRANSPORT FINANCE COMPANY LIMITED INTRODUCTION Business Responsibility Policy Shriram Transport Finance Company Limited ( the Company ), conscious about its social, environmental and economic responsibilities has already adopted various practices and formulated various policies, codes of conduct to discharge its corporate social responsibility and to deal with all its stakeholders in ethical, transparent and fair manner as a responsible corporate citizen. This policy is framed in line with requirements of clause 55 of the Listing Agreement with the stock exchanges and re-affirms the Company s commitment to follow the principles laid down in the National Voluntary Guidelines on Social, Environmental and Economic responsibilities of Business brought out by the Ministry of Corporate Affairs in conduct of its business. These principles form part of the Business Responsibility policy of the Company. SCOPE For sustainable development, the management of the Company will continue its efforts to strike proper balance between economic, social and environmental performance in dealings with various stakeholders of the company namely customers, investors, lenders, deposit holders and the society. The Company will make its best efforts to impress upon other entities in the value chain and its subsidiaries to participate in the Business Responsibility initiatives depending upon their means and resources. Principle 1: To conduct and govern themselves with ethics, transparency and accountability (i) (ii) (iii) (iv) The directors, management and employees at all levels will ensure good governance, ethical practices, transparency and accountability in conducting affairs of the Company and dealing with stakeholders of the Company. The directors, management and employees will report their compliance to the Companys policy. In the Annual report of the Company sent to shareholders, the Managing Director will certify compliance of the Company s code of conduct by directors and senior management. The Company will promptly post on its website information regarding quarterly, semi-annual and annual financial results/statements (standalone as well as consolidated) of the Company and its subsidiaries and its subsidiaries, Notices of general meetings, Intimations of Record-date, Annual Reports, shareholding patters, prospectus, profile of Board of directors and other information as per the

2 Listing Agreements with stock exchanges and provisions of the Companies such that same is easily accessible to the holders of the listed securities. The website will be updated from time to time. (v) (vi) The website will also contain a special window called Help-desk which may be accessed by investors and customers of the Company for redressal of their complaints. The Company will not engage in practices that are abusive, corrupt, or anti competition (vii) The Company will avoid complicity with the actions of any third party that violates any of the principles contained in these Guidelines Principle 2 : To provide goods and services that are safe and contribute to sustainability throughout their life cycle i. The Company will make representation to government authorities to implement various suggestions in the areas of improvement of road conditions, safe driving, reducing road accidents, encouraging training and issue of licenses for driving of Light Commercial vehicles in collaboration with Non-Government Organizations, launching scheme and providing subsidy for encouraging replacing of unsafe vehicles etc. The Company will provide financial assistance to Small Road Transport Operators (SRTO) to encourage timely maintenance of commercial vehicles, replacement of spare part, tyres, engines parts for safe driving, reducing accidents and pollution. Principle 3 : To promote well-being of all employees (i) (ii) (iii) (iv) The Company will provide equal opportunity to all employees starting from their recruitment irrespective of their caste, creed, gender, race, religion, language and disability or sexual orientation. The employees of the Company can belong to all parts of the country and will be selected based on individual merit without any discrimination or preference The Company will also formulate schemes and policies to address health, superannuation issues and welfare needs of our employees and their families. The Company will provide workplace environment that is safe, hygienic and which upholds the dignity of the employee. The Company will ensure continuous skill and competence upgrading of all employees by providing access to necessary learning opportunities on equal and non-discriminatory basis.

3 (v) (vi) (vii) (viii) The Company will promote employee morale and career development through various HR policies. The Company will frame stringent policies and practices to ensure that the employees especially female employees do not suffer harassment and create the environment where they feel safe and secure in discharging their responsibilities. The Company will not use child labour, forced labour or any form of involuntary labour, paid or unpaid. The Company will take cognizance of the work-life balance of its employees, especially that of women Principle 4: To respect the interest of and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized The Company s major stakeholders are customers, investors and market intermediaries, lenders, employees, society and government authorities. Our customers are primarily Small Road Transport Operators (SRTO) and First Time Users (FTUs).Our Investors comprise of shareholders (including Institutional Investors) and Debenture holders. i. The Company will focus on catering to the needs of Aam Aadmi (common man) reaching closer to the grassroots and making us the preferred choice for providing financial assistance. i iv. The Company will make loan products available to all qualified applicants without discrimination and to treat all customers consistently and fairly. The employees of the Company will offer assistance, encouragement and service to the customers in fair, equitable and consistent manner. The Company will communicate to its customers in transparent manner about the terms and conditions of the loans, including interest rates, service charges, penal interest, loan pre-payment charges, notice period for re-possession of vehicles in the event of default, mechanism for redressal of customer s grievance etc. v. The management will ensure that while dealing with customers, the employees follow Company s Fair practice Code. The Company will effectively resolve the customers grievances through mechanism laid down in the Code. The Fair practice Code will be displayed on website of the Company. The same will be amended from time to time in line directions of Reserve Bank of India. vi. The company will strive to be transparent, proactive and responsive towards its responsibility towards the investors.

4 v vi The company will give special attention to stakeholders from under-developed areas. As a part of Corporate Social Responsibility, the Company will provide financial assistance, directly as well as indirectly to the dis-advantaged, vulnerable and marginalized sections of the society. The Company will resolve differences with stakeholders in a just, fair and equitable manner Principle 5 : To respect and promote human rights As a good corporate citizen the Company will respect the human rights of those who come into its direct as well as indirect contact. i. The Company will pay fair wages to our employees and do not discriminate between male and female employees. They are treated equally with dignity and are given equal opportunities, rights and benefits. i iv. The Company will integrate respect for human rights in management systems, in particular through assessing and managing human rights impacts of operations, and ensuring all individuals impacted by the business have access to grievance mechanism. The Company will recognize and respect the human rights of all relevant stakeholders and groups within and beyond the workplace, including that of communities, consumers and vulnerable and marginalized groups. The Company will within their sphere of influence, promote the awareness and realization of human rights across our value chain. v. The management will ensure compliance and adherence to all the human rights laws and national laws. The Company s policies will strive to percolate these values at all levels in the organization. vi. The Company will not be complicit with human rights abuses by a third party. Principle 6 : To respect and protect, and make efforts to restore the environment i. As a part of Green initiative for paperless office, the Company will encourage using electronic methods of communication within and outside our offices and discourage use of paper. The Company will encourage shareholders to hold shares in dematerialized mode and provide their addresses for dispatch of notices for communication purpose.

5 The Company will endeavor to use electronic mode for remittance of dividend to its investors i iv. The management will spread awareness about conservation and optimum utilization of resources across all levels of the organization as well as in all our branch offices spread across the country. Our objective is to achieve highest level of paperless office by adopting practices, methods and modern techniques in our internal and external communication with our employees, investors, business associates and other stakeholders. The Company will actively conserve water by adopting various measures. v. The Company will should utilize natural and man-made resources in an optimal and responsible manner and ensure the sustainability of resources by reducing, reusing, recycling and managing waste. vi. v vi The Company will take measures to check and prevent pollution. The Company will continuously seek to improve their environmental performance by promoting use of energy efficient and environment friendly technologies and use of renewable energy. The Company will proactively encourage and support its value chain to adopt this principle. Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner i. The Company while pursuing advocacy policy, will ensure that their advocacy positions are consistent with the principles and core elements contained in this policy. To the extent possible, the Company will utilize the trade and industry chambers and associations and other such collective platforms to undertake such advocacy policy. Principle 8: Businesses should support inclusive growth and equitable development i. The Company will understand their impact on social and economic development, and respond through appropriate action to minimize the negative impacts. i The Company will make efforts to complement and support the development priorities at local and national levels. The Company will aim at operating its business in the regions that are underdeveloped should be especially sensitive to local concerns.

6 Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner The customer satisfaction is key of our growth and success in this line of business. The Company strives hard to provide better services to customers at large. i. The Company will serve the needs of its customers taking into account the overall well-being of the customers and that of society. i The Company will promote and advertise its services in ways that do not mislead or confuse the consumers or violate any of the principles in this policy. The Company will provide adequate grievance handling mechanisms to address customer concerns and feedback. IMPLEMENTATION AND MONITORING The Business Responsibility Committee (BR Committee) will monitor implementation of this policy through various projects / activities / initiatives undertaken for this purpose. The Business Responsibility head (BR head) will periodically report the feedbacks to the Managing Director and give his suggestions. The MD will update the BR committee on the implementation of the policy and feedbacks and suggestions received in connection therewith. The BR Committee will meet once in a year to review implementation of this policy, consider amendment in the policy, appointment of BR Head, recommending to the Board of Directors the sanction of budgets for the various projects under the policy, approving the BR Report and such other matters as may be placed before the meeting. SOURCE OF FUNDS The BR Head will give a presentation to the BR Committee on the proposed project and requirements of the funds for implementation of the said projects. The BR Committee will consider the same and gives its recommendation to the Board of Directors for sanctioning budget for the projects. AMENDMENT BR Committee will consider amendment if any required in this policy based on the suggestions given by the BR Head.