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MANAPPURAM MEANS GOLD AND SHRI NANDAKUMAR

IS DIAMOND

With the Trust, Commitment and Transparency extending over 60 years, Manappuram Group has emerged as a force to reckon with, under the stewardship of Mr. V.P. Nandakumar, the Chairman of the company. Today with 7 companies under its fold, having more than 870 branches spread over 15 States of India and a total business over Rs. 26 Billion, a workforce of over 5,000 and a customer base of over 4.8 million, we are India`s Largest Listed and Highest Credit rated Gold Loan Company. We are involved in providing a wide range of financial solutions to our customers that will make their life easy. The company was founded in 1949 by late Mr. V.C. Padmanabhan, a great visionary of his times. The company commenced its operations at Valapad, mainly with money lending activity on a very modest scale. The principal asset of the company was the impeccable integrity devotion and foresight of its founder. The company soon established itself as a safe haven for investments of the people of the area providing absolute safety and assured returns. On the sad demise of the founder in 1986, his illustrious son, Mr. V.P. Nandakumar, the present Chairman took over the reins. Under his dynamic leadership, the company never had to look back. Mr. Nandakumar was working as an officer of the erstwhile Nedungadi Bank, before he took over the captaincy of the company. Known for his sharp business acumen and professionalism, Mr. Nandakumar has been instrumental in taking the organization to its present level. With an alert mind and unconventional methods of problem solving, Mr. Nandakumar has put this organization on the launching pad. He believes that the future belongs to those who can advantageously use the technology to serve the customers by evolving customized products and services. The Group`s flag-ship Company, Manappuram General Finance and Leasing Limited (MAGFIL) was established in 1992 in the wake of economic reforms launched by the Government of India mainly to take advantage of the importance assigned to Leasing as a vehicle to promote decentralized pattern of Economic Growth through small and medium enterprises. In a short span of time, MAGFIL had several Firsts. 1. First NBFC from Kerala to receive a Certificate of Registration issued by RBI mainly on the strength of the company`s ability to settle the depositors` claim in full. 2. First NBFC from Kerala to get a credit rating of "MA+" from ICRA, (a credit rating agency approved by RBI) which signifies the company`s ability to make timely repayment of the principal and interest under its Public Deposit Programme. Within a short span of time MAGFIL recorded a phenomenal growth to become a premier NBFC from South India. 3. It is the FIRST NBFC from Kerala to have received Adequate Safety rating for its Secured Non- convertible Redeemable Debenture issue for Rs. 50 million.

4. First NBFC from Kerala to go for public issue. 5. First NBFC from Kerala to issue bonus shares at the ratio 1:1. 6. First NBFC from Kerala to receive Foreign Direct Investment (FDI). 7. First NBFC from Kerala to receive AD- II (Authorised Dealer - II) License from RBI. 8. First NBFC from Kerala to obtain Broker`s License from IRDA (Insurance Regulatory & Development Authority).

9.

First NBFC in the country to receive a Short-term rating of A1+ by ICRA. This is the Highest Short Term Rating

awarded by ICRA to any Corporate in India and Long term rating of LA+ for its working capital limit.

The company has been consistently making profit and paying dividends from the first full year of its operations. To facilitate the fund based activities, the company accepts deposits, Bonds and Non-convertible Debentures with attractive interest rates. The company was awarded "MA+" by ICRA which signifies adequate safety for customers` deposits. It also achieved the credit rating of "LA+" from ICRA for its working capital limit of Rs.1 billion under BASEL II norms. The shares of the company are listed in Mumbai, Chennai and Cochin Stock Exchanges and are actively traded in BSE at levels far above par. In 1993, this Group set up Manappuram Benefit Fund Limited, a NIDHI Company to provide specialized services to its members. Today, it is one of the topmost Nidhi Companies in South India. Manappuram Chits (I) Limited, a chit fund company registered under the Chit Fund Act 1982, a central legislation enacted by Government of India, was set up in the year 2000, where most of the Chit Fund Companies in Kerala found it difficult to conform to the discipline of this central legislation. As a part of its diversification, the company also started Forex business upon the Reserve Bank of India granting it a full-fledged money changers licence in the year 2002. The company also commenced in a big way for instant money transfer facility, in collaboration with Xpress Money, Coinstar, Instant Cash, Zoha, Ezremit and MoneyGram. Instant Money Transfers being the fastest method of inward and outward remittance of funds will be useful to NRIs for remitting money to or from their relatives in India, who will be able to receive the proceeds within a few minutes of remittance. Whilst the company`s core activity continues to be Gold Loan, it has entered very aggressively into fee-based activities especially in the wake of opening up of insurance sector allowing private participation. In November 2006,

company was awarded Broker`s License by IRDA to sell insurance. As an Insurance broker, the company is able to offer its customers a wide variety of products tailor-made to their requirements. Thus the company has emerged as a one-stop financial Super Market. In order to look after the fee-based activities exclusively, the Group has promoted a separate company called Manappuram Insurance Brokers Private Limited (MAIBRO) as wholly owned subsidiary of MAGFIL, the flagship company of the Group. The Group has received ISO 9001-2000 certification in the year 1993 as a hallmark of its having attained the International Quality Standards. As a premier organization, the company has derived its strength from the dedication of its highly motivated staff. Being an organization with a vision, the company has recognized that the best of investments are investment in people and has accordingly assigned considerable importance in the matter of training its staff. It is a matter of considerable pride that the company has a full-fledge training establishment with very few parallels in the NBFC sector, where in-house training courses are conducted almost continuously in a very professional manner for upgradation of the skills and for enhancement of functional efficiency so as to make the organization a "Customers` Delight". Every employee has been given very clear idea of his role which enables them to function more efficiently and produce better results. The Group functions with a tremendous sense of social responsibility. The setting of Manappuram Institute of Management (MAINMA) in September, 2005 to be groomed into a management institution of all India repute was dictated by this social responsibility. The Company has signed an agreement with M/s. Hudson Equity Holdings Limited and Sequoia Capital India Investment Holdings for preferential issue of compulsorily convertible preferential shares of Rs.100/- each for Rs. 234 million each, aggregating to Rs. 468 million to be converted into equity shares later. When converted into equity, both these investment companies together will be holding Rs. 4,667,284 (Rupees Four Million, Six Hundred and Sixty Seven Thousand, Two Hundred and Eighty Four) equity shares of Rs. 10/- each at a price of Rs. 100.272 constituting a maximum of 29.79% of paid- up equity share capital of the company. These funds have been raised for expanding our business in gold loan and vehicle loan by opening of more branches across the country. In November 2008, the company has also received capital infusion of Rs. 1 Billion and 80 Million from UK and the US-based equity firms, with participation from its promoters. The UK-based Ashmore Alchemy, a joint venture between Ashmore and Alchemy has invested Rs. 320 million through its Mauritius-based investment vehicle, AA Development Capital India Fund, LLC.

Considering the increase in the size and volume of operations of the company, we have appointed Earnest & Young, an internationally reputed firm as our auditors. The company`s vision in the short term is to emerge as a strong national player, with a wide Branch network across the entire country to serve its customers as a one-stop financial super market that makes our customers` life easy.