March 20, 2013

Press Release No. 1

News about Manappuram Finance Limited

The media had reports that share prices of Manappuram Finance Limited fell after the company shared information about large loan losses.

Manappuram Finance Limited has vide its letter inter-alia informed that,

"1. Selectively sharing of information:-

The statement that the Company has selectively shared some information with some investors is false and baseless. We would like to make it clear in this respect that we have met M/s. Ambit Capital analyst wing seeking some guidance on a professional basis on guiding the market about the 4th quarter results and future outlook. Our representative has met them at their office on Monday, the March 18, 2013 at about 4 pm. We have also seen analyst coverage on our Company from Ambit.

2. Con-call arranged on March 19, 2013

When we noticed the decline in share price, we discussed internally and decided to have an investors con call whereby the company could directly explain the position and answer queries of the investors too. The con call news was announced in our Web site at about 1.20.pm yesterday and the call was started at 2.30.pm. Mr. I Unnikrishnan Executive Director and Dy. CEO represented the Company and presented facts and figures. His presentation was completed at about 2.50 p.m. and the con call was completed at about 3.45.pm. Subsequently the Company has made an announcement to the exchange also,

3. Facts and figures about reduction in revenue.

In the above referred con call company disclosed that out of the total gold loan book of the Company, the Company is having a loan portfolio close to Rs. 1500.cores and a further amount close to Rs. 500 crores as interest accrued thereon. These loans of Rs. 1500 crores were disbursed largely during the months of October to December 2011 at a relatively higher LTV and therefore, the Company may lose a portion of the accrued interest to the extent of Rs. 250 crore as the price of the under lying security may not be sufficient to recover the interest in full due to the recent price correction of gold.

We expect a one time hit of Rs. 250 crores during this quarter either by way of crystlised income not being received or expected to be not received resulting in a Q4 loss up to Rs. 50 crore. This accounting treatment is being made as a prudent policy the company is following in income recognition. As a result of it the profit after tax of the company for the year 2012-13 is expected to be in the range of Rs. 300 crores."

Press Release No. 2

Market-wide Position Limit in HDIL

The derivative contracts in the underlying HDIL have crossed 95% of the market-wide position limit on March 20, 2013. It is hereby informed that all clients/ members shall trade in derivative contracts of HDIL by offsetting their existing positions till the open interest comes down to 80% of the market wide position limit.