Extracts from the Chairman’s Review for the Financial Year ended 31st December 2006

It gives me great pleasure to present to you, on behalf of your Board of Directors, the Annual Report of the Company for the financial year ended 31 st December 2006. It has been with the shareholders for the prescribed period of time, and I shall, with your permission, take it as read.

During the year under review, the economy shrugged off the last vestiges of the post tsunami effects which seemed to pervade it's every sector in 2005 and accelerated ahead of most economies in the region recording an annual GDP figure of USD 797 million and constant factor prices – a 18% increase over 2005, albeit from a low base. Lease penetration of GDP is estimated at 1.44% and capital goods penetration at 3.5% in 2006.

Your Company's performance for the year 2006 reflected all of the above and more. The company's lease portfolio increased by Mrf. 76.9 million – a 51% increase, from that at the start of the year and stood at Mrf. 227 million. Active leases stood at 82 USD leases and 242 Mrf leases and we had 478 leased assets under management, at the year-end, from 268 clients.

The Tourism sector share of the year end portfolio dropped to 25% (48% last year), while the Transport and Fisheries sectors were at 7% and 14% respectively and Commerce & Trading at 22%. Our marketing effort continues to focus on business enterprises outside and independent of, the Tourism sector and in creating an awareness of the product and how it benefits them, especially in the small and medium scale category. The Company's performance in 2006 was marked by a heightened level of activity and resultant new business which was handled admirably by the new front-line staff cadre who are progressing well in their training and development. Overall, the company's operations were in line with the strategy laid out in the business plan for 2006.

Your directors are pleased to recommend a first and final dividend of Mrf. 5,236,375. for the financial year 2006, representing a payout of 8.15% on your paid up capital. Shareholder equity stands at Mrf. 75,048,378. after the proposed dividend compared to the 2005 equivalent of Mrf. 71,519,645. and earnings per share for 2006 was Mrf. 13.64 – an increase from Mrf. 8.58 last year.

Our re-engineered business model of 2005 matured in the year under review and met the demands for increased efficiency, decisiveness and reliability, to all stakeholders. Service delivery levels improved markedly - as evidenced by the volume of annual new business, increasing our competitive advantage. Our investment in training and reliable systems marked by optimum segregation of duties and unambiguous responsibility paid off with an expanded and quality portfolio as evidenced by the portfolio growth and a 3 month NPL ratio of 2.1%. Mission critical areas continued to receive the focused attention of the management and were subject to the introduction of formal systems, change and continuous fine tuning.

Review teams from NDB Bank's Credit Risk Management division, Legal division, Group IT and Internal Audit conducted visits during the year in compliance with the Technical Assistance Agreement with NDB Bank in addition to CRM and legal technical assistance work carried out on a day to day basis from Colombo, utilising a total of 48 man days in Colombo and 32 man days in Male'. All review reports were tabled at the Audit Committee meetings, which met on two occasions in 2006 and the minutes of these meeting tabled with the Board.

For the first time, a strategic planning process was executed in 2006 and a viable and workable five year strategic plan for the company was formulated. Both NDB Bank and IFC loaned their in-house expertise to the process and the resultant comprehensive 5 Year Strategic Plan – covering the financial years 2007 to 2011, was adopted by your Board at their meeting held in January 2007. The Budgets and projections are also included in the Plan on a base date of 1 st January 2007 as were the Company's Vision and Mission Statement as well as our core corporate values.

The performance of the front-line team was good this year with almost all of them exceeding targets. We now have our full compliment of front line field staff with the last intake of 7 marketing executives in September 2006 making a total staff strength of 26, consisting of 25 nationals, 18 of which are directly in front line field operations and 7 in support services.

Throughout the year training and development of our most valuable resource – our staff, continued apace as is evidenced by our annual training costs of approximately Mrf. 1 million, investing 196 man days in lease related technical training and 111 man days on soft skills training. All members of the team were subject to training at various times during the year with the front line staff receiving 256 man days of training and the senior managers' 37 man days of training.

I wish to place on record my deep appreciation for the enduring support our Company receives from our customers, our shareholders and our technical partner, NDB Bank Limited and to the International Finance Corporation, our shareholder and financier , the OPEC Fund for International Development our other financier, and our Bankers for their support during the year under review.

My acknowledgements of support and expressions of thanks would be incomplete without mention of the Maldives Monetary Authority and the role they play in our country's nascent leasing industry. The MMA has been a immeasurable source of support and guidance to us this year too, at all levels within their organisation, as they have been in the past. We thank them for it and hope they would continue to be so in the years ahead.

In conclusion, I also wish to  express  my sincere gratitude to my colleagues who served with me on the Board in the past year, for being a source of discerning guidance, inestimable support and sincere encouragement to me, and I join them in conveying our appreciation and thanks to the Chief Executive Officer Mr. Soosaipillai, his team of Managers and our dedicated staff, for their positive attitude and determination displayed in overcoming challenges and achieving an improved performance of our Company, in the year under review.

Rifaath Jaleel

Chairman

3 rd April 2007