Eleventh Annual General Meeting – July 23, 2011
Chairman’s Speech

Dear Shareholders,

I take pleasure in addressing you at the eleventh annual general meeting of your company.

I trust you share the happiness with me in the growth of Islamic finance industry globally. Crossing the $ 1.1 trillion asset size in 2009, Islamic finance is the fastest growing sector of global finance industry. It’s increasing in size and expanding its presence to new frontiers each year especially the western non-Muslim countries. Islamic finance’s relation of risk and return and practical code of conduct ensuring resilience has increased its acceptance among the investor community worldwide. Education, training and research on Islamic finance is also fast growing in the world with latest researches focusing on products of international liquidity of Islamic finance funds based on Islamic finance principles.

The year that passed was forward looking for Islamic finance in India also with the land mark decision of Kerala High Court on Al Barakah Financial Services Ltd. opening doors for Government participation in Islamic finance institutions. Taking a step forward the Finance Minister of Kerala announced that infrastructure projects of the state will be funded by raising funds through Islamic finance institutions. Islamic finance in India last year was also marked by introduction of the BSE TASIS Shariah Index and commencement of Shariah compliant commodities market. Education and training in Islamic finance is also growing with more universities and colleges introducing regular and add on courses in Islamic finance and organizing seminars on Islamic finance in partnership with University Grants Commission. This is expected to ease the bottlenecks in marketing of Islamic finance products in the country. Market reports say that a few of the major business finance houses have availed Islamic finance from foreign sources to accustom to the industry and equip themselves to be the early birds in India as and when Islamic banking is approved.

I humbly share with you the dream of your company to grow big utilizing the opportunities thrown open by its tireless efforts to obtain legal sanction for Islamic finance in India. The visibility of your company has increased substantially in the last one year and we are determined to capitalize on the early bird advantage to grow in size increasing the capital and enhancing presence in wider regions. The efforts of the company to strengthen the marketing team are giving results and the awareness on the company has increased commendably. We have decided to open the next regional office of the company at Kannur to serve the northern Malabar region and plan to open more offices to enhance its reach. The company has also decided to increase the financing and advisory product portfolio to increase revenues. The company is also looking in to strategic alliances with other Islamic finance institutions to enhance the fund under management leveraging on its experience in the field.

AICL Builders and Developers Ltd the subsidiary of the company sold out 60% of plot developed in its first project and identified a plot at Calicut for its third project. The subsidiary has also acquired an office space at Calicut which is expected to give good returns. The activities of subsidiary are expected to augment revenues to the company this year also.

The microfinance portfolio of the Company has improved in performance with a more focused approach to finance projects more lucrative to the investors and the company and providing more assistance and advisory services. Your company is studying prospects of agricultural and animal husbandry financing activity and plan to introduce the same if viable. Your Board foresees a steady growth for your company with its current investments and growth plan and believes that the healthy competition from upcoming Islamic finance institutions will strengthen it further.

AICL Charitable Trust, a trust we floated to accept charities to help those suffering from the burden of interest, the poor and the destitute, has been rendering its services though funds are a constraint to satisfy the requirements of the applicants. Rs.19.39 lakhs has already been sanctioned from the trust to 107 persons. Many applications had to be rejected due to lack of funds. I request the members to contribute and persuade others to contribute a portion of zakath to the Trust and strengthen the activities of the Trust. God willing we hope to be able to reduce the interest and financial burden of the needy and provide them with a decent living free from the nuances of interest ridden financiers.

Your Board has taken all possible measures to make the operation of AICL as transparent as possible. At the same time all of you are welcome to write to us or to contact the officials of AICL whenever you need any additional information on AICL.

I express my gratitude for your attendance at this meeting. Those of you, who have come as representatives of your relatives or other shareholders, please convey to them the proceedings of the day. Your Company is privileged to have a Board of Directors comprising prominent people from all walks of life, bringing with them rich experience which have been highly useful for our Company. I take this opportunity to acclaim the services rendered by my fellow directors and pray for them, for the sense of dedication they have shown. I also thank our executive management and employees who look after the operations of the Company dedicatedly. I take this opportunity to acclaim the services of the Company’s Auditors who have done a commendable job in getting the accounts finalized. My thanks are due also to our internal auditors who continuously verify our accounts and records to ensure compliance with all norms and regulations. The Government agencies, especially the Reserve Bank of India, etc were highly helpful and cooperative with us. I thank them on behalf of the Board and the shareholders. I also express my deep appreciation and remain indebted to our shareholders – each and every one of you.

I would like to thank our valued participants for their continued support and confidence in your Company.

Once again I thank you all for the confidence you have shown in the Company. And I pray that may The Almighty help us in all our future endeavours.

Mohamed Ali A.,
Chairman