Kosamattam Finance Limited

BACKGROUND OF THE COMPANY

 Kosamattam Finance Ltd. (KFL/ Company), headquartered in the southern Indian state of Kerala, is registered

with RBI as a non-deposit taking, systematically important, NBFC, lending money against pledge of used

household gold jewellery (“Gold Loans”) in the state of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi

and in the Union Territory of Puducherry.

 The Kosamattam group was originally founded by Mr. Chacko Varkey (also known as Mr. Nasrani Varkey). His

great grandson, Mr. Mathew K. Cherian, the present Chairman and Managing Director of Kosamattam Group is

a fourth generation entrepreneur in the family.

 As on May 31, 2014, KFL is having a branch network of 810 branches, largely spread across southern India. The

Gold Loan portfolio of KFL as of March 31, 2014 is comprised of 3,76,341 gold loan accounts, aggregating Rs.

99,207.32 lacs which is 96.11 % of total loans portfolio.

 Gross non-performing gold loan assets were 0.17%, 0.31% and 0.36% of portfolio under management as of

March 31, 2014, 2013 and 2012 respectively.

 As of March 31, 2014, the average loan amount advanced by KFL was Rs. 26,361 per loan transaction. All of the

Gold Loans have a term of 12 months with an option to early closure. In the financial period ended March 31,

2014, the yield on Gold Loan assets was 25.52%.

 In addition to the core business of Gold Loan, KFL also offer fee based ancillary services which includes money

transfer services, foreign currency exchange and air ticketing services.

COMPETITIVE STRENGTHS & KEY STRATEGIES

Competitive Strengths Key Strategies

 Part of the Kosamattam Group which has a long

operating history and a large customer base.

 Branch network across rural and semi-urban areas

in South India.

 Organized and efficient IT Infrastructure

 Effective risk management system including

appraisal, internal audit and inspections.

 Experienced management team and skilled

personnel

 Expansion of business by opening new branches in rural and

semi urban areas to tap potential market for gold loans

 Expansion of business into metros and select Tier 1 cities

across India

 Increase visibility of Kosamattam Brand to attract new

customers

 Diversifying into new business initiatives by leveraging

branch network and customer base.

 Minimize concentration risk by diversifying the Product

Portfolio and expanding customer base

 Further strengthening risk management, loan appraisal and

technology systemsNCD – Public Issue Note

OBJECTS OF THE ISSUE

The funds raised through this Issue will, subject to applicable statutory/regulatory requirements, be utilized for

lending and investments, repayment of existing loans and towards business operations including for capital

expenditure and working capital requirements and general corporate purposes after meeting the expenditures of and

related to the Issue.