1. ADVICE for the WISE Newsletter August10

2. IndexPage No.Economic Update 4Equity Outlook8Debt Outlook 16 Forex18Commodities 19Alternative Assets 21 2 3. Dear Investor,However, the average expected inflation for the year has beenrevised upwards as well. In light of such expectations, RBI isIndian equity markets have remained largely flat through last likely to be quite unambiguous in its stance. In future wemonth. This was partly due to the cautious sentiments in light of expect the monetary tightening to continue. Both repo ratemonetary policy tightening and partly due to lackluster corporate and reverse repo rates will continue to increase. Also theresults. While both developments were largely expected, their difference between the two is likely to be reduced further inmaterialization kept investors looking for non-existent positiveorder to reduce the interest rate volatility.surprises. The mixed news from global markets has made usmaintain our cautious outlook for the short term. Owing to theDebt markets reacted as expected to the rate hikes withstrong economic fundamentals, our long term view for Indian marked increase in yields. Yields are likely to increase furtherequities remains bullish. In this context, the present market before peaking. Thus we maintain a negative outlook on longtenure debt. Investment opportunities in debt are likely to bescenario seems ripe for cherry picking of good quality stocks ratherfound on the credit side. The positive economic growththan investing in broad index. In terms of sectors, banking andatmosphere has reduced the credit risk considerably.consumer goods appear to be attractive bets owing to strongHowever this has not necessarily led to a reduction of creditcredit growth and renewed vigor in consumption respectively.spreads. Carefully selected corporate credit is likely to bePrivate equity investments are also a good option to capture thequite attractive in terms of risk adjusted yield in the presentpositive long term growth momentum of Indian economy. context. The idea should be to lock in attractive interest ratesin steps while the interest rate cycle peaks.In the monetary policy announced late last month, RBI hasincreased repo rate by 25 basis points to 5.75% (from 5.5%) and The relative calm on the front of various investment avenuesreverse repo rate by 50 basis points to 4.5% (from 4.0%). RBI had can be used as a period to rebalance portfolio allocations toalready increased both repo rate and reverse repo rate by 25 basisreflect the currently persisting expectations of growth ratespoints each on an ad-hoc basis earlier last month. The moves were and risks of different asset classes. The stability and relativelargely expected owing to the sustained high inflation rate. In predictability of the current equity and debt markets allowsrecent weeks, most experts have increased their forecast of Indiangradual restructuring of both sides of the portfolio and alsoGDP growth rate for FY11 from 8.0% to 8.5%. selective investments in alternate assets. Advisory services are provided through Karvy Stock Broking Ltd. (PMS) having SEBI Registration No: INP000001512. Investments are subject to market risks. Please read the disclaimer on slide no.23 3 4. As on Change over Change over130July 30th 2010last monthlast year 120110 BSE Sensex 17,868 0.9% 14.0% 10090Equity S&P Nifty 5,368 1.0% 15.8% 80 marketsDec-09Mar-10 Apr-10 May-10Jul-09 Jun-10Jul-10Sep-09 Oct-09Jan-10 Feb-10 Aug-09Nov-09 S&P 500 1,102 6.9% 11.6%Sensex Nifty Nikkei 2259,537 1.6% (7.9%)S&P 500Nikkei 225 8.3 10 Yr.7.810-yr G-Sec Yield 7.80%(25 bps)82 bps7.3Debt marketsCall Markets4.88%(48 bps) 188 bps6.8Fixed Deposit*6.00% (0 bps) (50)bps 7/31/20098/31/2009 9/30/200910/31/2009 11/30/200912/31/2009 1/31/2010 2/28/2010 3/31/20104/30/20105/31/20106/30/2010 7/31/20103,500 3,300 CommodityRICI Index 3,1316.1%5.2% 3,100 2,900markets Gold (`/10gm) 17,768(5.5%) 21% 2,700Crude Oil ($/bbl) 75.50.8%7.8% 2,500 Oct-09Aug-09 Sep-09Nov-09Feb-10 Dec-09 Mar-10 Jul-09 Apr-10May-10Jul-10 Jan-10Jun-10 RICI 50Forex Rupee/Dollar46.60.3%3.5% 48 46 marketsYen/Dollar88.72.5%9.3% 44 Jan-10 Jun-10 Jul-09Aug-09 Sep-09 Jul-10 Dec-09Feb-10 Oct-09Apr-10 Mar-10Nov-09May-10Rupee/Dollar * Indicates SBI one-year FD 4 5. The Conference Board Consumer Confidence Index which had which had declined sharply in June, retreated further in July. The Index now stands atUS 50.4 indicating growing uncertainty about the future state of the economy and labor market . US m-o-m unemployment rate edged down to 9.5 per cent in June 10. Euro-zone purchasing managers index surprisingly recovered to 56.7 in July from 55.6 in June indicating a continued recovery in the region. There hasEurope been an improvement in both the manufacturing and services sector. Industrial production rose by 0.9% (m-o-m) and 9.4% (y-o-y). Unemployment in the Euro zone remained at a record 10% in June for the fourth month running with almost 16m people out of work. Japans industrial production dropped by 1.5% in June from the previous month signaling the nations export-led recovery is losing momentum. Japan Japans unemployment rate increased in June 10 (m-o-m) to 5.3% from 5.2% in May 10 . These are the highest levels in the last 7 months. The HSBC China Manufacturing Purchasing Managers Index, fell to 49.4 in July from 50.4 in June. It was the first month since March 2009 that the PMIEmerging reading was below 50 indicating contraction in the manufacturing activity. economies This reflects the the combined effect of credit tightening, property cooling measures and Beijing's measures to cut capacity in energy-intensive sectors. 5 6. IIP monthly data 15%10% The GDP growth rate for FY10 came in at 7.4%; 5%better than the estimated 7.2% for FY10 with FY10 0%Q4 GDP figure coming in at 8.6%. May-09 -5%Jul-09Sep-09 Nov-09 Jan-10 Mar-10 May-10 For FY10, growth in construction sector remained unchanged at 6.5%, while industry and services grew at 9.3% (vs 8.2% ) and 8.5% (vs 8.7%) year on Industrial output as measured by the Index of year. Industrial Production (IIP) grew by 11.5% (y-o-y) in May 10. While this is way below the estimated The Finance ministry is targeting FY11 growth at 16%, combined with a manufacturing PMI of ~8.50%. We believe the current target is sustainable as we expect manufacturing and service sectors to 57.3 in June, it shows expansion in the continue to drive growth in the next few quarters, manufacturing sector. even as farm output stages a turnaround. We believe the growth in IIP will shift from consumption led sectors to manufacturing sectors as the economy keeps improving.GDP growth6 7. Growth in credit & deposits of SCBs 25Bank CreditAggregate Deposits20 Inflation as measured by WPI stood at 10.55% 15 (y-o-y) for the month of June-10 as compared to 10 10.16% during May 10 driven by high food and5fuel prices.0 We expect WPI inflation numbers to increase in coming months due to a direct fall out of the fuel price hike but expect moderation in m-o-m inflation numbers as the RBI continues its Bank credit growth further improved in the monthmonetary tightening stance and the base effect of June as it increased by 19.6% as compared to comes into play. 18.1% in the month of May 2010 12.0% We expect credit growth to further improve in the 10.0%Inflation next few quarters and settle at ~20% levels on the 8.0% back of improving business confidence and decline6.0% in risk aversion on the part of banks as the 4.0% economic recovery gathers momentum.2.0%0.0%Jun-09Oct-09 Jan-10Jun-10Dec-09 Jul-09Feb-10 Mar-10Apr-10Aug-09 Sep-09 Nov-09 May-09 May-10 -2.0% -4.0%7 8. Market valuations and outlookWe believe that the time correction has been underway for a good period of time now. Indian equity markets have now remained flat for over three quarters. On the other hand, the earnings growth is panning out as per our expectations. The Sensex has remained flat but the valuations have corrected from 17.9x forward earnings (September 2009) to now 15.7x forward earnings. Our earning expectation from the Sensex is ` 1050 for FY11 and ` 1250 for FY12. If the market remains flat for a quarter or two and the earnings growth remains on track (which in our opinion is likely), the valuations should start looking comfortable. In our view, this is an appropriate time to start allocation to Indian equities with a long term view and an uncompromising attention to quality.Near Term ConcernsWe are cognizant of the key issues that are holding markets back despite record inflows from FIIs during this calendar year. India can do little about the developments in the western world. The economic data from US and EU is mixed and does not indicate a decisive trend so far. We are subscribers of the view that the worst may be over, but consumption in western world will suffer for a long time to come. Notwithstanding its domestic character, India will be adversely impacted in an eventuality of the crisis deepening. Back here, inflationary pressures have caused the policymakers to sit up and start monetary tightening. The quarterly results for Q1FY11 bear the scars from rising input costs in the economy. If the monsoons turn out fine as it appears, Sensex forward food inflation should be manageable, but the same cannot be opined for fuel PER will get better and commodities. It will be interesting to watch how the central bank balancesif the markets remain flat for a between monetary tightening, liquidity induction and growth. quarter or two.8 9. FII & MF dataSales growth Series1Series220000 15000 10000 Substantial improvement in sales was witnessed in Q2 & Q3 Rs. (Cr) 5000mainly in consumption oriented sectors of the economy.Current Results by corporates show a strong Sales growth0 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10for the current quarter while consolidated figures are yet to-5000come.-10000 We expect improvement in sales in upcoming quarters;-15000especially in the manufacturing space as domestic demandpicks up. FIIs invested ` 16,617 Cr. in equities in the month of JulyProfit growth alone as the markets remained relatively stable throughout the month on cues of stable macroeconomic indicators. We also saw huge FII inflows in the Debt segment amounting to ` 8,100 Cr. Mutual Funds sold around ` 4,182 Cr in the month of July as Recent Q3 & Q4 numbers have beaten estimates with Corporates and Banks exited the markets. Banks are higher sales and better operational efficiency aiding profit currently gaining a higher rate of ~5.8% (Call rate) asgrowth. compared to returns given by Liquid funds. Margins are expected to remain stable in the followingquarters as lower interest costs are offset by higher rawmaterial costs9 10. RecommendationSector Rationale Higher credit growth, well managed NPAs, improved capital marketBFSIactivities and expectations of reformsIndustrialsFocus on infrastructure spend intactOverweightDiscretionary Robust domestic demand, income growth, favorable demographics,Consumption rapid urbanization Resilient demand in CRAMS, generics opportunity getting better and Healthcare strong pressure on governments to reduce public healthcare costs Lower volumes, affordability issues and the leverage on the balance Real Estatesheets of the companies Positive steps in the direction of fuel price deregulations, increased E&P Oil & Gasactivities but under recoveries still loom large Neutral CementSignificant overcapacity build up and slow down in North, West andSouth India markets.Despite the macroeconomic opportunity, we are concerned about theTelecom ongoing price war and significant leverage post 3G & BWA auctions10 11. Alpha Portfolio Our Portfolio Management Model Is Comprehensive and has an Inclusive Approach to Equities. It is Sector and Market Cap neutral. Has Undiluted Market Exposure. There is no Capping of gains and No Cash calls Is Non-restrictive and plays on all available Investment Themes such as Growth, Re-Rating etc. Aims at generating Alpha through Active Portfolio Management Looks towards Management of Core Investment Risks Carries out Incisive Research to identify Winners KPW v/s traditional equity advisory models KPW Equity AdvisoryTraditional Equity AdvisoryLong Term investing in wealth-creating,Frequent churning of the investors undervalued stocks portfolio Both KPW and the investors focus is onAdvisor and Investors interests are generating long term returns not aligned 11 12. Investment IdeaCompany and Generation (Top Down & Management Profiling Bottom Up) Attribution Analysis, Periodical Portfolio Proprietary & Third Evaluation & Alpha PortfolioParty ResearchRebalancingPortfolio Building & Internal Valuation & Risk Management Screening12 13. Basic Theme A diversified portfolio of stocks that seeks Alpha through superior stock selection. The Portfolio Management adopts a comprehensive approach and invests across sectors, investment themes and market capitalization categories. Portfolio Details Absolute Returns (%) Entry Load Nil Comparatives 1 Month Since Inception Exit LoadNil (Full management fee to be levied if redeemed before 1 yr) Management Fee 1.5% p.a. Alpha Portfolio1.4%12.57% Profit Share 20% of Outperformance over 12% 1.04%6.65%S&P CNX NiftyTop 10 HoldingsSector AllocationPerformance ITC Ltd.7.5% ACC Ltd.6.5% 14% 12.57%Alpha Portfolio Mahindra & Mahindra Ltd.5.7% Financials12%Others 28% Reliance Industries Ltd.5.0%20% Cement 10% Nifty Infosys Technologies Ltd. 5.0% 12% IT HDFC Ltd4.8%8%8%6.65% Consumer Shriram Transport 4.2% Oil & GasGoods 13% 6% SBI 4.0% 8%Auto 9% 4% ICRA3.9% BHEL3.9%2% 1.40%1.04% 0%1MSince Inception (30/11/09) 13 14. Nifty Linked Knockout structure The structure is for those investors who are mildly bullish on the market and would not like to take end of the period or point to point risk on the market. Nature of DebentureSecured Non Convertible DebentureFace Value ` 1,00,000Minimum Subscription ` 5,00,000PremiumUp to 25,00,0001.5% of the Face Value of debentureAbove 25,00,0001.0% of the Face Value of debentureTenure 15 / 18 MonthsParticipation Rate 110%Principal Protection 100%Initial LevelAverage of Nifty at first three months, with a 95% floorFinal LevelAverage of Nifty at last three monthsKO Rebate16%KO Level 120%If KO is not triggered 1.1 * Max { 0, Final Level/Initial Level - 1}Barrier Observation FrequencyMonthly from 4M to 12MIssuer / RatingLAA rated NBFCListingNSE14 15. 15/18 Months: 110% PR Entry Nifty52005200 5200 52005200 5200Final Nifty Level25005200 6000 62006500 7000Nifty Return-51.92% 0.00%15.38% 19.23%25.00% 34.62%Product Return 0.00%0.00%16.92% 21.15%16.00% 16.00%Investment Rationale Our in house view on Nifty is bullish, based on our assessment that the domestic economy will grow at near double digit levels led by strong growth in industry and services and resurgence in agriculture which will help drive corporate earnings growth at a CAGR of 18% to 20% over the next three years. The product provides 110% participation on the Nifty and also provides 100% capital protection; thereby protecting the downside completely and providing returns higher than actual Nifty performance. In case of any sharp up swings, the product ensures a coupon of 16%. There is no end of period risk.Risks Credit risk of the issuer. However, the debentures will be secured partly by way of creation of charge on immovable property and partly by way of hypothecation / floating charge on the current assets and / or receivables and / or other movable tangible and / or intangible assets and/or any other asset of the issuer and / or its affiliates subject to the satisfaction of the debenture trustee. 15 16. Yield curve(%)10.00 The benchmark 10 yr G-sec yield increased from 8.00 7.54% in June to settle around 7.8% in the 6.00month of July. This was due to the RBI tightening 4.00 2.00its monetary stance in the July Review. 0.00 We believe that future monetary tightening 1.1 0.02.2 3.2 4.3 5.4 6.5 7.5 8.6 9.710.811.812.914.015.116.117.218.319.4 (Yrs.) measures is unlikely to a major impact on thelonger end of the yield curve and once theinflation drops, the yields may peak out around We expect yields at the longer end of the yield8% levels. We expect the 10 yr G-sec yields to curve to remain stable. High inflation, monetary remain in the broad range of 7.25 8.0% in the tightening and rising credit growth will keep thenext few quarters. yields at the longer end range bound.10-yr G-sec yield8.2 Short term liquidity concerns arising from 3G810 Yr. Gsec yield 7.8 auctions and advance tax payments will keep7.6 yields at the shorter end at elevated levels.7.47.27 Due to rising inflationary expectations, there may 6.8be further interest rate hike by RBI but will stabilize around 7.25 8% levels by year end.16 17. CategoryOutlook DetailsWe recommend short term bond funds with a 6-12 month investment horizon as we expect them to deliver superior Short Tenurereturns due to high YTM and concerns over credit quality easeDebt as the economy recovers, thereby prompting ratings upgrade.Positive economic climate has reduced credit risks without acommensurate decrease in credit spreads. Some AA and selectCreditA rated securities are very attractive at the current yields. Asimilar trend can be seen in the Fixed Deposits also.We expect yields at the longer end of the yield curve to go up.Long Tenure Yields may move to the broad range of 7.5 8.5% in the next Debt few quarters. This may be an attractive investment once theinflationary pressure in the economy settles down. Currentlyhowever the outlook remains negative.17 18. Rupee movement vis--vis other currencies (M-o-M) Trade balance and export-import dataSingapore Dollar100ExportImport Trade Deficit 0(Mn) Euro 50(%) Japanese Yen 0British Pound -50Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr-1 May- Jun-1 -20000 09 09 09 09 09 09 09 10 10 10 0 10 0 US Dollar Exports for the month of May increased by 30.4% y-o-y -8.00%-6.00% -4.00% -2.00% 0.00% 2.00% while imports increased by 23.5% increasing the trade(%)deficit to USD 10,554 Mn.The Rupee appreciated v/s the US dollar in the month of Junedue to a slow pace of recovery in the U.S. and investment intothe Indian markets. The positive stress test results in the Capital account balanceEurozone, and indication of a speedier recovery of theeconomy than expected earlier proved to be a positiveindicator for the Euro and the British Pound. Our medium term view is that the rupee is likely to Capital account balance was positive in the first ninestrengthen further in 2010. Higher interest rates in Indiamonths for FY10would attract large capital flows. Moreover the government isexpected to simplify the rules on foreign inflows to facilitate We expect the capital account balance to remain positivelarger foreign capital inflows in the form of FDI as higher interest rates would make investment in theIndian markets attractive hence drawing investments intothe market.18 19. 2000019000 Gold Spot18000 The recent correction has triggered technical shorts that might17000Precioustake gold to much lower levels; however the physical demand160001500014000 should arrest any sharp fall in gold prices given the forthcomingMetals 7/31/2009 8/31/20099/30/200910/31/200911/30/2009 12/31/2009 1/31/2010 2/28/20103/31/2010 4/30/20105/31/2010 6/30/20107/31/2010 festival season in India. While the correction is imminent in the short term, the long term prospects of gold continue to remain attractive. 90 Crude Last month the crude prices increased by 0.8%, and are expected to 80 trade lower in Q2 due to no significant seasonal demand (Q2 is the maintenance season for refineries) Oil & Gas 70 Natural gas prices to trade lower in Q2 owing to speculation over 60 weak demand. Jul 09 Sep Oct Nov Dec JanFeb Mar Apr May Jun 10 10Aug 09 09 09 09 09 10 10 10 10 10 Jul 1,050 RICI Agri Prices of essential commodities have seen an increase of 10.7% in1,000950the last month. But, due to expectations of higher production 900Agri output, we see the prices declining in the coming months850 A favorable Rabi output to further cool prices in the medium term 800 Jul-09 Oct-09Apr-10 Feb-10Mar-10 Jan-10May-10 Jun-10 Aug-09Sep-09 Nov-09Dec-09 2,700RICI Metal While in the last month, the metal index rose by 5.2% triggered by 2,500 2,300Base the positive global news and decreasing LME inventories, there is 2,100still uncertainty in the global markets. As the markets stabilize over 1,900Metalsthe next six months, we could expect a modest uptrend in prices. 1,700 1,500 Nov-09Oct-09 Jul-09 Jul-10 Dec-09Feb-10Mar-10 Aug-09 Sep-09Apr-10May-10Jan-10Jun-1019 20. Overview A scheme that will invest in physical silver, gold and Capital Protected Gold Linked Structures enable limiting the capital protected gold linked structures in a phaseddownside in case of adverse market movements manner. The Advisory team to run the fund consists of Opportunity to redeem investment in physical gold Ajay Mitra, Navin Kumar, Sumit Somani, Sachin Tulsyan, Saurabh Kumar and a nominee from the business The drawdown over a period of 6 months helps us invest into gold at different prices levels giving us an opportunity to partners and/or custodian partner average our costs.AttractivenessProduct Features Cost savings through the Schemes life cycle: Size: ` 300 Crores + Green shoe option of ` 200 Crores MBS-1 would buy gold and deposit it in a gold deposit Maturity: 3 years (plus potential 1 year extension) scheme with ScotiaMocatta which will earn a net interest Minimum contribution: ` 15 lacs for individual investor (` 10 of 1 1.5% p.a. not available normally to small ticketlacs in case of single installment) , ` 25 lacs for investors.corporate/institutional investors Physical Silver is purchased internationally and is of very Hurdle rate: 12% compounded, annualized IRR (pre-tax) pure import quality. Through tie up with ScotiaMocatta, Profit Sharing: 10% of net profits of the Scheme with catch up storage, custodian and insurance charges will be brought below 1% p. a. Hence, through MBS-1, there is a saving of 2%-3% due to reduced procurement prices as well as Management fee: 1.5% p.a. of committed amount reduced storage and custodian expenses. Setup fee: One Time Set up cost of 2% of commitment amount Portfolio customization for investments above ` 50 Lakh Drawdown: Single Installment, or 25% upfront and balance 75% in three equal installments of 25% each, over a period of 6m (each at an interval of 2 months)20 21. Overview Investment Committee ICICI Venture is launching its second real estate fund targeted Mr. Sanjeev Dasgupta: President - Real Estate at investments in residential realty projects for the mid income Mr. Sudarshan Bajoria: Director - Real Estate group. The fund focuses on established as well as emerging Mr. Omprakash Srivastava: Director Operations, Real Estate locations of Tier I cities with established infrastructure Product Features Fund size: ` 500 Cr + green shoe option of ` 500 Cr Attractiveness Fund tenure: 5 years with an option of two 1 year extensions Demand for residential realty is expected to reach 7.5 million Investment Term: 2 Years from date of initial closing units by 2013 and the highest cumulative demand will be seen Minimum Commitment: 2,500,000 by Mumbai (1.6 million units). Bangalore and Hyderabad are Initial Draw-down Amount: 20% of total commitment expected to witness the highest CAGR at 14%. Expected IRR: 20 - 23% Real Estate investments in Tier 1 cities have proven to be more Hurdle rate: 10% per annum resilient to downturns and also provide significant upside Upside Sharing: 20% of net profits of the fund with catch up opportunity making it an attractive investment opportunity. Management fee: 2% p.a. of the total commitment amount Investment strategy primarily focused on shorter tenure residential projects and hence, may result in early realization of profits. The company has strong real estate credentials and a proven track record. 21 22. Leveraging breadth of related businesses that KARVY is in KARVY is an integrated financial services group, with Karvy Private Wealth being one of its arms. The entire groups strengths are leveraged to provide end-to-end wealth advice to Karvy Private Wealth clients. For example, SME clients can receive advice on their personal wealth while also getting investment banking advice from the I-banking arm of Karvy.Maximum choice of products & servicesKARVY Private Wealth offers the widest breadth of products and services, providing clients a variety of options through a single contact. Products and services include equities, debt instruments, commodities, Mutual Funds, Insurance, Structured Products, Financial Planning, real estate advice, etc.Product-neutral adviceWe ensure that our recommendations are 100% product-neutral and unbiased because unlike other players, we are neither tied up with any one particular insurance company nor do we have our own mutual funds.All-India presence Set to have business in 20 - 25 cities we are poised to cater to families and businesses spread across multiple cities in India providing them with combined and integrated advice. For one-off services, if required, we can also leverage KARVY Groups presence in 400 cities. 22 23. The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group companies. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it.The investments discussed or recommended here may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned here, investors may please note that neither Karvy nor any person connected with any associated companies of Karvy accepts any liability arising from the use of this information and views mentioned here.The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above-mentioned companies from time to time. Every employee of Karvy and its associated companies are required to disclose their individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Stock Broking Ltd.The information given in this document on tax are for guidance only, and should not be construed as tax advice. Investors are advised to consult their respective tax advisers to understand the specific tax incidence applicable to them. We also expect significant changes in the tax laws once the new Direct Tax Code is in force this could change the applicability and incidence of tax on investments23 24. Bangalore080-26606126 Chennai044-45925925 Delhi011-43533941 Hyderabad040-44507282 Kolkata033-40515100 Mumbai 022-33055000 Pune 020-66048791 Email: wealth@karvy.comSMS: HNI to 56767Website: www.karvywealth.comCorporate Office : 702, Hallmark Business Plaza, Off Bandra Kurla Complex, Bandra (East), Mumbai 400 051 24