<PAGE> PAGE 1
000 B000000 08/31/95
000 C000000 350900
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
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000 J000000 A
"001 A000000 TEMPLETON SMALLER COMPANIES GROWTH FUND, INC."
001 B000000 811-3143
001 C000000 3055277591
"002 A000000 500 EAST BROWARD BLVD, SUITE 2100"
002 B000000 FT. LAUDERDALE
002 C000000 FL
002 D010000 33394
002 D020000 3091
003 000000 N
004 000000 N
005 000000 N
006 000000 N
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007 C010700 7
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007 C010900 9
007 C011000 10
"008 A000001 TEMPLETON INVESTMENT COUNSEL,INC."
008 B000001 A
008 C000001 801-15125
008 D010001 FORT LAUDERDALE
008 D020001 FL
008 D030001 33394
008 D040001 3091
"010 A000001 TEMPLETON GLOBAL INVESTORS, INC."
010 C010001 FORT LAUDERDALE
010 C020001 FL
010 C030001 33394
010 C040001 3091
"011 A000001 FRANKLIN TEMPLETON DISTRIBUTORS, INC."
011 B000001 8-5889
011 C010001 ST. PETERSBURG
011 C020001 FL
011 C030001 33701
011 C040001 3628
<PAGE> PAGE 2
"012 A000001 FRANKLIN TEMPLETON INVESTOR SERVICES, INC."
012 B000001 84-00000
012 C010001 ST. PETERSBURG
012 C020001 FL
012 C030001 33701
012 C040001 3628
"013 A000001 MCGLADREY & PULLEN, LLP"
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
015 A000001 THE CHASE MANHATTAN BANK N.A.
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
"015 A000002 CHASE MANHATTAN BANK, N.A."
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 E040002 X
015 A000003 THE CHASE MANHATTAN BANK AUSTRALIA LIMITED
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
015 A000004 CREDITANSTALT - BANKVEREIN
015 B000004 S
015 C010004 VIENNA
015 D010004 AUSTRIA
015 D020004 A-1011
015 E040004 X
015 A000005 GENERALE BANK
015 B000005 S
015 C010005 BRUSSELS
015 D010005 BELGIUM
015 D020005 1000
015 E040005 X
015 A000006 BANCO CHASE MANHATTAN S.A.
015 B000006 S
015 C010006 SAO PAULO
015 D010006 BRAZIL
015 D020006 SP 04719-002
015 E040006 X
015 A000007 THE ROYAL BANK OF CANADA
015 B000007 S
015 C010007 TORONTO
015 D010007 CANADA
015 D020007 M5J-2J5
015 E040007 X
<PAGE> PAGE 3
015 A000008 CANADA TRUST
015 B000008 S
015 C010008 TORONTO
015 D010008 CANADA
015 D020008 M5J 2T2
015 E040008 X
015 A000009 STANDARD CHARTERED BANK
015 B000009 S
015 C010009 DHAKA
015 D010009 BANGLADESH
015 D020009 1000
015 E040009 X
015 A000010 DEN DANSKE BANK
015 B000010 S
015 C010010 COPENHAGEN
015 D010010 DENMARK
015 E040010 X
"015 A000011 CESKOSLOVENSKA OBCHODNI BANKA, A.S."
015 B000011 S
015 C010011 PRAHA
015 D010011 CZECH REPUBLIC
015 D020011 1
015 E040011 X
"015 A000012 THE CHASE MANHATTAN BANK, N.A."
015 B000012 S
015 C010012 LONDON
015 D010012 UNITED KINGDOM
015 D020012 EC2P 2HD
015 E040012 X
015 A000013 KANSALLIS-OSAKE-PANKKI
015 B000013 S
015 C010013 HELSINKI
015 D010013 FINLAND
015 D020013 00500
015 E040013 X
015 A000014 BANQUE PARIBAS
015 B000014 S
015 C010014 PARIS
015 D010014 FRANCE
015 D020014 75078
015 E040014 X
"015 A000015 CHASE BANK, A.G."
015 B000015 S
015 C010015 FRANKFURT
015 D010015 GERMANY
015 D020015 60441
015 E040015 X
015 A000016 BARCLAYS BANK PLC
015 B000016 S
015 C010016 ATHENS
015 D010016 GREECE
<PAGE> PAGE 4
015 D020016 10562
015 E040016 X
"015 A000017 CHASE MANHATTAN BANK, N.A."
015 B000017 S
015 C010017 CENTRAL
015 D010017 HONG KONG
015 E040017 X
015 A000018 HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B000018 S
015 C010018 JAKARTA
015 D010018 INDONESIA
015 D020018 10023
015 E040018 X
015 A000019 BANK OF IRELAND
015 B000019 S
015 C010019 DUBLIN
015 D010019 IRELAND
015 D020019 1
015 E040019 X
"015 A000020 CHASE MANHATTAN BANK, N.A."
015 B000020 S
015 C010020 MILAN
015 D010020 ITALY
015 D020020 20121
015 E040020 X
"015 A000021 CHASE MANHATTAN BANK, N.A."
015 B000021 S
015 C010021 TOKYO
015 D010021 JAPAN
015 D020021 100
015 E040021 X
015 A000022 BANK LEUMI LE-ISRAEL B.M.
015 B000022 S
015 C010022 TEL AVIV
015 D010022 ISRAEL
015 D020022 65136
015 E040022 X
015 A000023 CITIBANK BUDAPEST RT.
015 B000023 S
015 C010023 BUDAPEST
015 D010023 HUNGARY
015 D020023 1052
015 E040023 X
"015 A000024 CHASE MANHATTAN BANK, N.A."
015 B000024 S
015 C010024 KUALA LUMPUR
015 D010024 MALAYSIA
015 D020024 50250
015 E040024 X
"015 A000025 CHASE MANHATTAN BANK, N.A."
015 B000025 S
<PAGE> PAGE 5
015 C010025 COLONIA JUAREZ
015 D010025 MEXICO
015 D020025 06660
015 E040025 X
015 A000026 ABN-AMRO N.V.
015 B000026 S
015 C010026 DE BREDA
015 D010026 NETHERLANDS
015 D020026 4800
015 E040026 X
015 A000027 NATIONAL NOMINEES LIMITED
015 B000027 S
015 C010027 AUCKLAND
015 D010027 NEW ZEALAND
015 E040027 X
015 A000028 DEN NORSKE BANK
015 B000028 S
015 C010028 OSLO
015 D010028 NORWAY
015 D020028 1
015 E040028 X
015 A000029 HONG KONG & SHANGHAI BANKING CORP LTD
015 B000029 S
015 C010029 MANILA
015 D010029 PHILIPPINES
015 E040029 X
015 A000030 BANCO ESPIRITO SANTO E COMMERCIAL DE LISBOA
015 B000030 S
015 C010030 LISBON
015 D010030 PORTUGAL
015 D020030 1200
015 E040030 X
"015 A000031 CHASE MANHATTAN BANK, N.A."
015 B000031 S
015 C010031 SINGAPORE
015 D010031 SINGAPORE
015 D020031 0104
015 E040031 X
015 A000032 CHASE MANHATTAN BANK N.A.
015 B000032 S
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015 D010032 SPAIN
015 D020032 28042
015 E040032 X
015 A000033 HONG KONG & SHANGHAI BANKING CORP. LTD.
015 B000033 S
015 C010033 COLOMBO
015 D010033 SRI LANKA
015 D020033 1
015 E040033 X
015 A000034 SKANDINAVISKA ENSKILDA BANKEN
<PAGE> PAGE 6
015 B000034 S
015 C010034 STOCKHOLM
015 D010034 SWEDEN
015 D020034 S-106 40
015 E040034 X
015 A000035 UNION BANK OF SWITZERLAND
015 B000035 S
015 C010035 ZURICH
015 D010035 SWITZERLAND
015 D020035 8021
015 E040035 X
"015 A000036 CHASE MANHATTAN BANK, N.A."
015 B000036 S
015 C010036 BANGKOK
015 D010036 THAILAND
015 D020036 10500
015 E040036 X
"015 A000037 CITIBANK, N.A."
015 B000037 S
015 C010037 LIMA
015 D010037 PERU
015 D020037 27
015 E040037 X
"015 A000038 CITIBANK, N.A."
015 B000038 S
015 C010038 CARACAS
015 D010038 VENEZUELA
015 D020038 1010
015 E040038 X
"015 A000039 CHASE MANHATTAN BANK, N.A."
015 B000039 S
015 C010039 ISTANBUL
015 D010039 TURKEY
015 D020039 80700
015 E040039 X
015 A000040 STANDARD BANK OF SOUTH AFRICA
015 B000040 S
015 C010040 JOHANNESBURG
015 D010040 SOUTH AFRICA
015 D020040 2001
015 E040040 X
015 A000041 HONG KONG AND SHANGHAI BANKING CORP LTD
015 B000041 S
015 C010041 SEOUL
015 D010041 SOUTH KOREA
015 E040041 X
015 A000042 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000042 S
015 C010042 SHANGHAI
015 D010042 CHINA
015 E040042 X
<PAGE> PAGE 7
015 A000043 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000043 S
015 C010043 SHENZHEN
015 D010043 CHINA
015 E040043 X
015 A000044 THE FIRST NATIONAL BANK OF BOSTON
015 B000044 S
015 C010044 MONTEVIDEO
015 D010044 URUGUAY
015 E040044 X
015 A000045 NATIONAL BANK OF EGYPT
015 B000045 S
015 C010045 CAIRO
015 D010045 EGYPT
015 E040045 X
015 A000046 BARCLAYS BANK OF GHANA LTD.
015 B000046 S
015 C010046 ACCRA
015 D010046 GHANA
015 E040046 X
015 A000047 HONG KONG AND SHANGHAI BANKING CORP. LTD.
015 B000047 S
015 C010047 PORT LOUIS
015 D010047 MAURITIUS
015 E040047 X
015 A000048 BANQUE COMMERCIALE DE MAROC
015 B000048 S
015 C010048 CASABLANCA
015 D010048 MOROCCO
015 D020048 01
015 E040048 X
015 A000049 BARCLAYS BANK OF ZIMBABWE
015 B000049 S
015 C010049 HARARE
015 D010049 ZIMBABWE
015 E040049 X
015 A000050 BANK HANDLOWY W. WARSAWIE S.A.
015 B000050 S
015 C010050 WARSAW
015 D010050 POLAND
015 D020050 01-211
015 E040050 X
"015 A000051 CESKOSLOVENSKA OBCHODNI BANKA, S.A."
015 B000051 S
015 C010051 BRATISLAVA
015 D010051 SLOVAK REPUBLIC
015 E040051 X
015 A000052 CEDEL S.A.
015 B000052 S
015 C010052 LUXEMBOURG
015 D010052 LUXEMBOURG
<PAGE> PAGE 8
015 E040052 X
015 A000053 FIRST CHICAGO CLEARING CENTRE
015 B000053 S
015 C010053 LONDON
015 D010053 UNITED KINGDOM
015 D020053 EC3A 1AA
015 E040053 X
015 A000054 RESERVE BANK
015 B000054 S
015 C010054 SYDNEY
015 D010054 AUSTRALIA
015 E040054 X
018 000000 Y
019 A000000 Y
019 B000000 190
019 C000000 FRNKTEMGRP
"020 A000001 SMITH BARNEY, HARRIS, UPHAM & CO. INC"
020 B000001 13-1912900
020 C000001 291
020 A000002 ROBINSON HUMPHREY
020 B000002 58-1472560
020 C000002 173
"020 A000003 GOLDMAN, SACHS & CO."
020 B000003 13-5108880
020 C000003 104
020 A000004 MONTGOMERY SECURITIES
020 B000004 94-1701676
020 C000004 82
020 A000005 INSTINET - CROSSING NETWORK
020 B000005 13-3443395
020 C000005 62
020 A000006 FIRST BOSTON CORPORATION
020 B000006 13-5659485
020 C000006 61
020 A000007 CROSBY SECURITIES INC.
020 B000007 13-3662490
020 C000007 59
"020 A000008 MERRIL LYNCH,PIERCE,FENNER,& SMITH INC."
020 B000008 13-5674085
020 C000008 55
020 A000009 ALFRED BERG
020 B000009 13-3629590
020 C000009 55
020 A000010 NATWEST SECURITIES CORP. (COUNTY)
020 B000010 13-3312778
020 C000010 49
021 000000 1955
"022 A000001 CHASE MANHATTAN BANK, N.A."
022 B000001 13-2633612
022 C000001 1124048
022 D000001 203130
<PAGE> PAGE 9
022 A000002 ROBINSON HUMPHREY
022 B000002 58-1472560
022 C000002 22792
022 D000002 571
022 A000003 MONTGOMERY SECURITIES
022 B000003 94-1701676
022 C000003 7544
022 D000003 8956
022 A000004 FIRST BOSTON CORPORATION
022 B000004 13-5659485
022 C000004 5555
022 D000004 10531
"022 A000005 GOLDMAN, SACHS & CO."
022 B000005 13-5108880
022 C000005 8227
022 D000005 6575
"022 A000006 MERRIL LYNCH,PIERCE,FENNER & SMITH,INC."
022 B000006 13-5674085
022 C000006 3645
022 D000006 10516
"022 A000007 S.G. WARBURG & CO.,INC."
022 B000007 13-3340045
022 C000007 11273
022 D000007 0
022 A000008 PAINE WEBBER
022 B000008 13-2638166
022 C000008 2343
022 D000008 7659
"022 A000009 SMITH BARNEY,HARRIS UPHAM & CO.INC."
022 B000009 13-1912900
022 C000009 8601
022 D000009 1306
022 A000010 MORGAN STANLEY & CO.INC.
022 B000010 13-2655998
022 C000010 3565
022 D000010 4839
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
070 H010000 N
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070 J020000 N
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070 K020000 Y
070 L010000 Y
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070 M010000 Y
070 M020000 Y
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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SIGNATURE JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON SMALLER COMPANIES GROWTH FUND INC. AUGUST 31, 1995 ANNUAL
REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000350900
<NAME> TEMPLETON SMALLER COMPANIES GROWTH FUND
<SERIES>
<NUMBER> 001
<NAME> CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 1085827569
<INVESTMENTS-AT-VALUE> 1411592494
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<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 83534
<TOTAL-ASSETS> 1461366288
<PAYABLE-FOR-SECURITIES> 8315551
<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 11642515
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<ACCUMULATED-NII-CURRENT> 10508605
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 98214203
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 325764925
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<DIVIDEND-INCOME> 25004281
<INTEREST-INCOME> 10710720
<OTHER-INCOME> 0
<EXPENSES-NET> 18142822
<NET-INVESTMENT-INCOME> 17572179
<REALIZED-GAINS-CURRENT> 113468314
<APPREC-INCREASE-CURRENT> (13200708)
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<DISTRIBUTIONS-OF-GAINS> 15254111
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<ACCUMULATED-GAINS-PRIOR> 2201201
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<OVERDIST-NET-GAINS-PRIOR> 0
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON SMALLER COMPANIES GROWTH FUND INC. AUGUST 31, 1995 ANNUAL
REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000350900
<NAME> TEMPLETON SMALLER COMPANIES GROWTH FUND
<SERIES>
<NUMBER> 002
<NAME> CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 1085827569
<INVESTMENTS-AT-VALUE> 1411592494
<RECEIVABLES> 49690260
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 83534
<TOTAL-ASSETS> 1461366288
<PAYABLE-FOR-SECURITIES> 8315551
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3326964
<TOTAL-LIABILITIES> 11642515
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1015236040
<SHARES-COMMON-STOCK> 293675
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 10508605
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 98214203
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 325764925
<NET-ASSETS> 1449723773
<DIVIDEND-INCOME> 25004281
<INTEREST-INCOME> 10710720
<OTHER-INCOME> 0
<EXPENSES-NET> 18142822
<NET-INVESTMENT-INCOME> 17572179
<REALIZED-GAINS-CURRENT> 113468314
<APPREC-INCREASE-CURRENT> (13200708)
<NET-CHANGE-FROM-OPS> 117839785
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 17799526
<DISTRIBUTIONS-OF-GAINS> 15254111
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 300812
<NUMBER-OF-SHARES-REDEEMED> (7137)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 40229556
<ACCUMULATED-NII-PRIOR> 12630414
<ACCUMULATED-GAINS-PRIOR> 2201201
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10004316
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18142822
<AVERAGE-NET-ASSETS> 1172058
<PER-SHARE-NAV-BEGIN> 7.87
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> .88
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.75
<EXPENSE-RATIO> 2.11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Board of Directors and Shareholders
Templeton Smaller Companies Growth Fund, Inc.
In planning and performing our audit of the financial statements of Templeton
Smaller Companies Growth Fund, Inc. for the year ended August 31, 1995, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of Templeton Smaller Companies Growth Fund, Inc. is responsible
for establishing and maintaining an internal control structure. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control structure
policies and procedures. Two of the objectives of an internal control structure
are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition and
that transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
August 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/MCGLADREY & PULLEN, LLP
McGladrey & Pullen, LLP
New York, New York
September 29, 1995
<PAGE>
