Growth - A way of life - Muthoot Group

From the Chairman’s DeskGrowth - A way of lifeThe spectacular growth of the Muthoot Group is the result of trust and confidence that millions of oursatisfied Customers have reposed in us and the legacy of 124 years based on values & ethics.Over the years, we have helped people fulfilling their dreams & ambitions by providing meaningful, honestand unparalleled services & Products. Today we have built a reputation which is unsurpassed by anystandard of measuring yardstick.we have challenged ourselves to perform better than the best. We have now launched a new venture inGold Financing, offering Customers loan against the security of Gold Exchange Traded Funds (ETFs) units.This will not only add value to the services but also enable the Company to service financial requirementsof new Customer segment. The ETFs are listed in Stock Exchanges and can be bought & sold on a realtime basis, giving the instrument immense liquidity.The first Quarterly results of Muthoot Finance following the IPO are a clear indication of the great future that is beckoning us. Ascompared to Rs. 85 Crores during the last Fiscal, we have registered a Net Profit of Rs. 190 Crores for the Quarter ended 30th June2011 - a tremendous 123% growth. The total Income for the Quarter stood at Rs. 920 Crores as compared to Rs. 380 Crores in thelast Fiscal, which translates into a growth of 141%. The process of globalization and our move towards global standards changed theperception of Customer Service and our endeavour to serve the Customer better resulted in innovative Services and Products.Remember, excelling and managing Customer relationship is the future of any Business. The Customer focusing is not to be viewedas just a Business strategy but should become a Corporate Mission. In order to create a branded service, it is important to becomeCustomer-centric.Now, determination is to be built up at all levels of administration for achieving the optimal result. The primary objective/goal is shareholder value Maximization, without however diluting our ethics and values at any cost.In several areas of Business such as Resource,Advances, Non-Interest Income etc., the objective potent should be to increase our Market share at all levels, as a means of improvingprofitability. This will require a change in the mindset of different functionaries in Head Office, Regional & Branch levels and profitmaximization should be the focus of all exercises at all levels of administration. By the grace of God Almighty, we have come a longway but we sincerely believe that we have many more miles to go. It will be apt to quote the famous lines of Robert Frost, the greatAmerican Poet, immortalized by our first Prime Minister, Pandit Jawaharlal Nehru, who used to keep the following lines under the glasspane of his study table,“The woods are lovely, dark & deepBut I have promises to keepAnd miles to go before I SleepAnd miles to go before I Sleep.”ChairmanM.G.George MuthootVOL XVI / ISSUE #3 / SEPTEMBER 11for private cirulation onlyWorld Malayalee Council has awarded “Business Man of the Decade“ award to Shri.M. G. George Muthoot, Chairman, Muthoot Group, at a glittering ceremonyheld at Gokulam Convention Centre, Kochi. The award was handed over toShri. M. G. George Muthoot, by Shri. Vayalar Ravi, Union Cabinet Minister forOverseas Indian Affairs and Minister of Civil Aviation.Delhi Malayalee Association honoured Shri. M.G.George Muthoot, Chairman, The Muthoot Group ata colorful function held at Siri Fort Auditorium, NewDelhi. Shri. A.K. Antony, Hon’ble Defence Minister ofIndia, Shri. Vayalar Ravi, Union Cabinet Minister forOverseas Indian Affairs and Minister of Civil Aviationwere present at this occasion.

Muthoot Travelsmart won the 1st prize in Keraleeya Vesham contest2011”, held at Cochin on 6th Sept. 2011.Muthoot Finance Present Star Vijay Nite, Coimbatore.The country wide investors of Gold ETFs (Exchange Traded Funds) cannow avail hassle free loan against their ETF units from Muthoot FinanceLtd. Muthoot Finance Ltd - the largest gold financing NBFC in India, willnow offer loans to the public against the security of Gold ETFs (ExchangeTraded Funds).Gold Exchange Traded Funds (ETF), commonly referred as ‘Paper Gold’are mutual fund units issued by Asset Management Companies against995 purity physical gold deposited with a SEBI registered custodian. GoldETFs are listed and traded on stock exchanges; hence, can be bought andsold like stocks on a real-time basis. These funds are passively managedand mirror the domestic gold prices. By enabling investors to invest ingold without holding it in physical form, Gold ETFs offer a rather uniqueinvestment opportunity to investors.Muthoot M George Excellence Award Distribution atInfant Jesus Anglo Indian Higher Secondary School,Thangassery.Under the auspices of Muthoot M George Foundation,The Muthoot Group distributed Muthoot M GeorgeExcellence Awards to the 10th standard topers of 200 GovernmentSchools in Ernakulam, Pathanamthitta, Calicut, Alleppey,Kottayam, Trissur & Kollam Educational Districts.Kottayam Ernakulam CalicutMr. M. K. George, Regional Manager,Ernakulam sings with “Angel VoiceOrchestra at Fine Arts Hall Ernakulamon the occasion of the release ofspecial cover, commemorating thebirth centenary of Late Mr. M GeorgeMuthoot, by postal authorities on18.06.2011.KollamAlleppeyTrichur

Titan Industries, the LargestJewellery Chain in Tamil Nadu hasjoined hands with India’s LargestGold Loan Company “MuthootFinance Limited” to enablecustomers to realize their dreamof owning gold jewellery by paying15% of actual price on buyingand remaining price in monthlyinstallments. This tie-up aims toenable thousands of customers inthe rural India, own and invest ingold jewellery of their choice fromGoldplus, without selling their oldjewellery or other assets.Launching this unique scheme, Mr. George M George, Executive Director, MuthootGroup, informed media that “Under this scheme, customers would need to payonly 15% of actual price of the ornaments at the time of buying the ornaments.The remaining amount needs to be paid in monthly installments to Muthoot FinanceLimited. The customers will be given a 30-day interest free period to repay the loanamount. After which, they will be charged lowest interest rates and a repaymentperiod up to 2 years.”Mr. Palani Kumar – General Manager, Goldplus said that this offer is as of now availableonly in Nagercoil, Marthandam, Tanjavur, Kumbakonam, Mayiladuthurai & Pattukottaistores of Goldplus and soon would be rolled out across all stores of Goldplus. To knowmore about this offer, customers can walk into the nearest Goldplus showroom orMuthoot Finance branch.Goldplus: Goldplus, a leading jewellery retail brand from Titan Industries Limited – ATATA Group Company, is India’s only corporate brand in the mass-market gold retailbusiness. With 30 retail stores spread across tier III & tier IV towns, Goldplus fromTata is well known for its pure gold jewellery, transparent business practices and widerange of Jewellery.Goldplus offers a wide range of jewellery in diamonds, uncut diamonds, rubies,emeralds and other precious stones. Manufactured in its 1, 50,000 sq.ft. state-of-theartmanufacturing facility at Hosur, Tamil Nadu, every piece of jewellery goes throughelaborate and intense quality checks to ensure the purity of gold and a perfect finishof the jewellery.Goldplus not just sells pure gold jewellery. It even ensures every product is endorsedby a certificate from the house of TATA’s that states the purity of the gold and thequality of diamonds & other precious stones used in the jewellery. Every store hasa karatmeter where consumers can check the purity of gold free of cost. For moreinformation, log on to www.goldplus.inSmt. Bhadra, Hon’ble Deputy Mayorof Corporation of Cochin inauguratedour Kaloor Stadium Branch. RegionalManager. Shri. M.K George, DivisionCouncilor Smt. Gracy Joseph, MuthootGroup General Manager Shri. CherianPeter, Merchants Association KaloorUnit President Shri. Peethambaranwere also present on the occasion.Trivandrum Vellayambalam Branchopening function. Mr.George JacobMuthoot JMD lights the lamp.Inauguration of our Sastri Road branchunder Kottayam Region. Mr. GeorgeThomas Muthoot, Jt. ManagingDirector, The Muthoot Groupaddressing the gathering.Our Pattom Branch under Trivandrum North Region crossed `100 crores turn over andbecame the first branch to cross this Land Mark. In the photo our JMD, Trivandrum isfelicitating the staff members of the Branch.Blessing ceremony of Trivandrum,Jawahar Nagar branch.Trivandrum North Region Anniversary Celebration.

GEORGEANS SHINE AT THE CSE’SGREEN SCHOOL AWARDS 2010-11(Right to left. (5) Ms.Sheila Dikshit (The ChiefMinister of Delhi), (6)Dr. Ms. Sara George,Principal St. George’sSchool, (11) Ms. SunitaNarain, Director General,CSE and Staff members andStudents of St. George’sSchool, Alaknanda, NewDelhi).A joyous moment for the students of St. George’s School, New Delhi as they baggedcoveted positions at the Green School Award function held on 15th July at the IndiaHabitat Centre. Being the show stoppers in the Change Makers category the Georgeansbagged the 4th position in the National Category out of 15,000 schools pan India andwas one of the two schools from Delhi which qualified for the 20 national toppers.They also won the coveted 2nd position in the Delhi State Category. The 2010-11awards were given away by Ms. Shiela Dikshit, Honourable Chief Minister of Delhi andmembers of Indian Ocean, the iconic contemporary rock band. Other eminent guestspresent on the occasion were Ms. Sunita Narain, Director General, CSE.Muthoot Vehicle & AssetFinance Ltd (MVFL) hasentered into a MOU withUnited India InsuranceCo Ltd (UIIC) for issuinggeneral insurance policiesdirectly to customers.The MOU covers interaliaissuing of covernotes, policies, renewalof policies, servicing ofpolicies and hassle freesettlement of claims. Theagreement would enableMVFL to issue insurancecover at discounted ratesto customers. The MOUwas signed by Mr. Gerard K.John, DGM & CEO, MVFL and Mr.P.Gopakumar, DivisionalManager, United India at the Corporate Office of MVFL, Cochin on 29.06.11.Muthoot M George Foundationdistributed Study Materials tothe Students of Govt. LP School,Udayathumvathil, Panangad.Muthoot Pondicherryregion cricket team.Ms. Linta Mathew receives financialhelp from Rev. Fr. John Chacko in thepresence of Mr. T.M. Mathews, AGMKollam, Mr. Varghese Kunjumon, RM,Kollam, Ms. Elizabeth John, BranchManager, Kadappakkada.In the past year, as Muthoot Groupplanned the initial public offering ofits finance division, the company alsoplanned for its hospitality division tooperate independently, under outsideprofessional management. We arewriting to let you know that todaythis transition is complete.Muthoot Cardamom County willreturn to using its original trade name,Cardamom County; and MuthootBackwater Cruises will return to usingits original trade name, River Escapes.Both properties are doubling theirefforts at providing authentic Keralahospitality at the highest standards.Both are expanding their commitmentsto creative conservation and tocollaborating with the communitieswhere they operate to improve locallivelihoods. To this end we areintroducing Raxa Collective, whichwill now serve as our unifying brandidentity. While each property willbe known by its own trade name,they will be affiliated with a growingnetwork of resorts around the worldwith common values. What doesit mean? Raxa is a derivative ofthe Sanskrit word for protection.Collective is meant to evoke the spiritof cooperation within a committedgroup. We encourage you to visit ourwebsite, www.raxacollective.com,and its companion site that committedinterns and associates have initiated:http://raxacollective.wordpress.com.We also take this opportunity toremind you of a few key details aboutour properties:Cardamom County, in the spicegrowingupper reaches of the WesternGhats, offers 44 well-appointed guestrooms at the edge of the Periyar TigerReserve in Thekkady. The Reserveoffers spectacular interpretivenature excursions. Our natural farmprovides spices, vegetables and fruits,mushrooms, eggs and poultry to thefusion cuisine All Spice restaurant;room service is available at all times.Ayura, our Ayurvedic wellnesscenter, offers treatments rangingfrom brief rejuvenation sessions tolifestyle-changing health regimens.A swimming pool and exercise roomcomplement Ayura’s treatments.River Escapes at Pallathuruthy,Alleppey offers the finestaccommodations on the backwaters,with one bedroom, two bedroom andthree bedroom houseboats. Eachis equipped with state of the artkitchen and crew that interpret thisamazing ecosystem and its shorecommunities for guests while tendingto meals and other comforts. Inaddition to our houseboats, PampaVilla is a waterfront villa available atChampakulam, Alleppey for bookingto complement the beginning or endof a houseboat journey.

A Special Cover was released by the postal authorities to commemorate Shri. M. George Muthoot, Founder Chairmanof Muthoot Finance. The release function was held at Fine Arts Hall, Ernakulam in the presence of Excise Minister –Shri K. Babu.His Grace. Dr. Yakob Mar Irenaios- Metropolitan of Kochi Diocese, Shri, Domnic Presentation,MLA, Shri. Benny Behnan, MLA, Shri. Hibi Eaden, MLA. Shri. M.G. George Muthoot, Chairman, The MuthootGroup, Shri. George Alexander Muthoot, Managing Director, Shri. George M Jacob, Director, Shri. AravindakshanNair – Senior Post Master, Shri. Salim Kumar – Cine Artistwere also present on this occasion.Muthoot Finance Directors announcing the Q1 result for theyear 2010-2011. Left to Right Mr. George Jacob Muthoot,Jt. Managing Director, Mr. P. George Varghese, Director, Mr.George Alexander Muthoot, Managing Director, Mr. M.G.George Muthoot, Chairman, Justice K. John Mathew, Director,Mr. George Joseph, Director, Mr. George Thomas Muthoot, Jt.Managing DirectorQ1 FY 2012 Resultsa) Retail Loan Assets under Management ` 17949crores (YoY increase of 96%)b) Profit after tax ` 190 crores (YoY increase of125%)c) Earnings per share ` 5.39 (YoY increase of198.89%)d) Income from Operations ` 920 crores (YoYincrease of 140%)• Financial Services • Hospitality • Real Estate• Education • Healthcare • IT • Media • Forex• Money Transfer • Wealth Management• Precious Metals • Power Generation• Travel Services • Securities Trading• Commodities & Currency Trading• Plantations • Vehicle & Assets Finance Ltd.interest rates of gold bondsFixed Income Gold Bond (w.e.f: 01.03.2011)Monthly Interest SchemePeriod General Special Category**30 days 7.00 % 7.50 %46 days 8.00 % 8.50 %3 months 9.00 % 9.50 %6 months 10.00 % 10.50 %12 months 11.00 % 11.50 %400 days 11.50 % 12.00 %18 months 12.00% 12.50%24 months 12.00% 12.50%30 months 12.00% 12.50%36 months 12.00% 12.50%60 months 11.00% 11.50%Annual Interest SchemePeriod General Special Category**12 months 11.50% 12.00%400 days 12.00% 12.50%18 months 12.50% 13.00%24 months 12.50% 13.00%30 months 12.50% 13.00%36 months 12.50% 13.00%60 months 11.50% 12.00%PeriodMultiplier Bond (w.e.f: 01.03.2011)MaturityvalueGeneralEffectiveYield (p.a.)Special Category**MaturityvalueEffectiveYield (p.a.)36 months 1426 14.20 1447 14.9060 months 1720 14.40 1762 15.24**Interest rate for Special Category is applicable to (a) Senior Citizens, (b) State/CentralGovernment Pensioners, (c) Ex- servicemen and their widows, (d) Central/State Award Winners, and(e) Single investment of Rs.25 lakhs and above.Muthoot Doubling Bond (w.e.f: 08.02.2011)*Maturity value of Effective Yield*PeriodRs.1000*(p.a.)66 months 2000 18.19%*Minimum investment Rs.25,000/-Call free from BSNL Landline: 1800 425 1887. Customer Care Cell: 98470 91119.Tel: 0484 2396478, 2394712. Compiled & Published by The Muthoot GroupFax: 0484 2396506.(A Muthoot M George Enterprise), for privatee-mail: mails@muthootgroup.com circulation. Corporate Office: Muthoot Chambers,Opp. Saritha Theatre Complex, Banerji Road,www.muthootgroup.comKochi - 682 018, Kerala, India.English