ADVICE for the WISE

Newsletter – JANUARY 2012

2

Economic Update 4

Equity Outlook 8

Debt Outlook 12

Forex 14

Commodities 15

Index Page No.

Contents

Real Estate 16

Dear Investor,

2012 is likely to be better than 2011 – partially because how bad 2011 hasbeen but definitely because the causes of panic in 2011 are likely to beless daunting in 2012. Sovereign debt crisis in Europe, fragility of Europeanbanks, worries of hard landing in China on the global front and policyparalysis and pushback of even halfhearted reforms on the domestic frontkept most investors nervous. Continued high incidence of domesticinflation clearly did not help, nor did the marked slowdown in domesticindustrial activity during the second half of 2011. This was a good enoughrecipe for a cautious investor sentiment for all risk assets and a generalpreference for debt – especially when, thanks to RBI, debt instrumentswere routinely returning 9% to 12% per annum.

This is likely to change. Inflation looks set to go sub-8% and stay therethrough 2012. On the back of that monetary policy is likely to loosen – asstated explicitly by RBI governor in his last policy speech and also impliedin the bond market rally in the closing weeks of 2011. The direct effect ofthis on corporate earnings will be positive. Revenue growth had continuedto be robust in 2011 but increased interest cost ate away most of theprofits. Now as interest rates ease, especially in the second half of 2012,we are likely to witness the reversal of that trend i.e. profits are likely togrow faster than revenues in India Inc. The global growth or lack of it islikely to be more or less neutral in its impact on corporate earnings inIndia. If the global growth is robust, commodities might rally leading tohigher input costs – but on the other hand better exports might do welltoo leading to better demand albeit in a different section of the economy.

Globally, matters seem finely balanced in Europe and positively biased inUS and China. Our expectations are mostly those of muddling throughacross all three. We expect no major accidents in either of theseeconomies.

The longer term problems of deleveraging, the tight-rope-walkbetween fiscal austerity and pro-growth fiscal policies and challengesto productivity remain in the west while China will continue tostruggle with its bridges-to-nowhere leading to NPAs in bankingsector and over-dependence on exports. The likeliest scenario henceis things chugging along without major improvements or accidents.The risk appetite of global investors hence is likely to stay moderate.In the light of the above expectations, our ideas for 2012 are toinvest in Indian equities, long term Indian debt and multi-assetportfolios. We also recommend taking some exposure to selectemerging market equities – especially the ones which are fiscallysound and have a neutral to positive current account viz. Indonesia,Turkey and Brazil. On the equity front, US equities are a good hedgeto emerging market equities if the muddle-through dragging on fortoo long bothers investors just enough to reduce exposure toemerging markets while staying in the risk-on trade.

Multi-asset portfolios are likely to do well on the back of exposure tocrude oil and USD besides equities. Commodities will bounce if globalgrowth outlook brightens while USD will do well if growth falters andrisk-off trade is triggered. Hence having exposure to both crude oiland USD besides equities is prudent.

Our outlook on gold (denominated in rupees) is not particularlybullish in the first half of the year. An overdue correction mightcontinue. Also since rupee is more stable now than last few months,a fall in gold price in dollar terms will push rupee price down as well.We recommend buying on dips in gold.

3

From the Desk of the CIO…

“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.19”

4

As on 31st

Dec 2011 Change over last month

Change over last year

Equity Markets

BSE Sensex 15455 (4.1%) (24.6%)

S&P Nifty 4624 (4.3%) (24.6%)

S&P 500 1257 0.9% 0%

Nikkei 225 8455 0.2% (17.3%)

Debt Markets

10-yr G-Sec Yield 8.54% (19 bps) 63 bps

Call Markets 8.50% 5 bps 275 bps

Fixed Deposit* 9.25% 0 bps 150 bps

Commodity Markets

RICI Index 3612 (2.2%) (7.0%)

Gold (`/10gm) 27170 (5.8%) 32.1%

Crude Oil ($/bbl) 107.4 (3.6%) 15%

Forex

Markets

Rupee/Dollar 53.26 (2.1%) (15.9%)

Yen/Dollar 77.4 0.7% 5.4%

Economic Update - Snapshot of Key Markets

10 yr Gsec

Gold

* Indicates SBI one-year FD

7.507.707.908.108.308.508.708.909.10

42.00

44.00

46.00

48.00

50.00

52.00

54.00

56.00

`/$

75

80

85

90

95

100

105

110

115

120Sensex Nifty

S&P 500 Nikkei 225

15000

17000

19000

21000

23000

25000

27000

29000

31000

5

US

Europe

Japan

Emerging economies

• HSBC preliminary PMI, a gauge of nationwide manufacturing activity, edged up to 49.0 inDecember from November's final reading of 47.7. This, though higher, was still in contractionaryterritory.

• Inflation slowed to 4.2% in Nov’11 & Early in December, China cut the reserve requirement forcommercial lenders for the first time in 3 years.

• The subindex for new export orders fell to 49.7 in December from 52.1 in November. Theemployment subindex also fell, to 49.2 from 50.1.

• The Conference Board Consumer Confidence Index rose almost 10 points to 64.5 in December,up from a revised 55.2 in November.

• In the week ending December 24, the advance figure for seasonally adjusted initial claims was381,000, an increase of 15,000 from the previous week's revised figure of 366,000.

• Real GDP increased at an annual rate of 1.8 percent in the third quarter of 2011 (that is, from thesecond quarter to the third quarter), according to the "third" estimate released by the Bureau ofEconomic analysis. In the second quarter, real GDP increased 1.3 percent.

• The Eurozone unemployment rate edged up to 10.3% in October, a figure that encompasses veryhigh levels of joblessness in peripheral countries such as Spain and Greece with relatively firmlabor markets in France and Germany.

• Eurozone Manufacturing Purchasing Managers' Index (PMI) rose slightly in December to 46.9from November's 46.4, but marked its fifth month below the 50 mark that divides growth fromcontraction

• The seasonally adjusted Markit /JMMA Purchasing Managers’ Index (PMI) posted 50.2 inDecember, up from 49.1 in November, signalling a marginal improvement in manufacturingsector operating conditions. The level holds higher significance with a number being above 50signifying an expansion.

• Japan's jobless rate was unchanged in November which was 4.5% in October, and consumerprices fell by 0.5% in November from last year, 0.3 point lower than in October.

Economy Update - Global

6

Economy Outlook - Domestic

• The fall in production at factories and mines is clear evidencethat the Reserve Bank of India's prolonged interest rateincreases, as well as tepid export demand due to globalgrowth worries, are strangling manufacturing activity in Asia'sthird-largest economy.

• India's economic growth rate slowed down further to 6.9 percent in the second quarter (July-September) of FY12 ascompared to 8.9 per cent achieved in the same quarter of theprevious financial year. The GDP growth rate for Q1 and Q2FY11 was revised downwards to 8.1 and 8.4 respectively fromthe previous estimates of 9.3 and 8.9%.

• This was attributed largely to the negative growth in ‘miningand quarrying’ and steep fall in the growth of manufacturingsector, as compared to their levels of growth in Q2 of 2010-11.

• The burgeoning fiscal deficit situation, high inflation ratescenario and slowdown in corporate earnings growth havestalled India's growth story to some extent in 2011

GDP growth

• India's industrial output shrunk by 5.1% in October afterwitnessing a sustained slowdown over the past fewmonths, led by a steep fall in production of almost sectors,particularly manufacturing, mining and capital goods.

• Factory output, as measured by the Index of IndustrialProduction (IIP), had grown by 11.3% in October last year.As per data released by the government , industrial outputgrew by 3.5% in the April-October period this fiscal, asagainst 8.7% in the same period last year.

• This is the lowest number over a-28 month horizon. This isdue to the manufacturing sector which contracted by(6.0)%, along with mining activities banned across keymines in India, de-growth in mining sector is not surprising.Electricity, which was growing smartly until now, hasslowed to 5.6% YoY. On the user side, slowdown inconsumer goods (0.8)% YoY shows that consumers arepostponing their expenditures. No surprises in the capitalgoods sector either, showing volatile growth yet again at(25.5)% YoY.

4.0

5.0

6.0

7.0

8.0

9.0

10.0

FY10(Q2) FY10(Q3) FY10(Q4) FY11(Q1) FY11(Q2) FY11(Q3) FY11(Q4) FY12(Q1)

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Sep 10

Oct 10

Nov 10

Dec 10

Jan 11

Feb 11

Mar 11

Apr 11

May 11

Jun 11

Jul 11

Aug 11

Sep 11

Oct 11

Economic Outlook - Domestic

• As on December 16, bank credit grew 17.8% anddeposits 18% annually. This is the lowest rate ofgrowth since March 2010. Credit growth has beenbelow the central bank’s projection of 18 per cent sincethe last two months.

• Due to the high rate of inflation and inflationaryexpectations, RBI had raised policy rates by 375 basispoints in 13 tranches since March 2010. This took a tollon credit off-take, as banks reacted by increasinglending rates by around 250 basis points in the sameperiod.

• On account of the slowing growth in the economy andthe expected decrease in inflation, a pause is expectedin the interest rate hikes.

• India’s inflation slowed to the lowest level in a year,boosting the central bank’s scope to supportgrowth by pausing its record interest-rate increases.Inflation, as measured by the wholesale price index(WPI), eased slightly to 9.11% in November 2011, asagainst 9.73% in October 2011 and 8.20% duringthe corresponding month of the previous year.

• The modest decline in wholesale inflation wasdriven by a drop in food inflation. In November,food inflation was just eight-and-a-half percentcompared to more than 11% in October. There wasa dip seen in the weekly food inflation, which hasbeen lowest since 2005 at 1.81% for the weekended Dec 10, 2011.

Growth in credit & deposits of SCBs

7* End of period figures

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

Wholesale Price Index

10.0%

15.0%

20.0%

25.0%

30.0%

Bank Credit Aggregate Deposits

8

Equity Outlook

CY12 turned out to be the second worst year for Sensex since 1980. India also turned out to be the 2nd worst performingcountry amongst large Emerging markets in 2011. This was a year when the resilience of the Indian economy got challengedby both internal and external factors.

Bulk of the pain was self-inflicted. Correction in markets in the last quarter was more due to India Specific Issues like lack ofpolicy measures, corruption and monetary tightening. GDP growth continues to come down. In foreign investors mind, therewere concerns about the mid-term direction this country is taking with increasing subsidies and populist measures.

2011 - second worst yearly performance for BSE - Sensex

Returns (%)

-20 & Below -20 & 0 0 & +20 20 to 50 50 & above

2008 2001 2002 1980 1988

2011 1998 1982 1993 1981

1995 1987 1983 1990 1999

2000 1986 1984 1992 2003

1997 2005 2009

2004 2006 1991

2010 2007 1985

1989

1994

We believe that going forward markets will reconcile to the factthat trend growth rate is coming down, and could settle at 6.5-7%.This could be the new normal for growth and is by globalstandards, not a bad number at all. We expect growth to bottomout in Q1 CY12 at 6%. Corporate earnings should also bottom outaround this time. We expect inflation would come down this yearand could average around 7% leading to nominal growth of 13-14%. That would lead to corporate earnings growth of 15%.

We expect RBI is to start easing monetary policy on the back ofslowing growth and easing inflation. There could be a total of 50-100bps reduction in interest rates during the year. Rupee hasweakened significantly this year on the back of high currentaccount deficit. Rupee was overvalued on trade weighted dataand is now reaching fair valuation levels. We expect 50 to be thenew normal for rupee and expect it to stay around these levels inCY12. Exporters will benefit big time from this rupee weakness.

9

Globally, things are not as bad as perceived in August. In US, there is no double-dip recession. Fourth quarter GDP growth isexpected to be around 3.5%. The consumer spending, retail sales, ISM data and unemployment numbers have all beenresilient for last two months. We expect US growth to stay around 2% for 2012. In Europe, situation is slightly trickier.Eurozone will see very low or negative growth for most of this year. The European central bank has started to provide longtenor funding to European banks which could result in easing of liquidity in the European banking system. We believe thesituation in Europe will stay difficult but eventually all countries would move towards a more closer union. We don’t expectany catastrophic event or a disorderly break-up of euro and any emergence of stress will see European central bank taking amore proactive role.

The market correction in the last quarter in India has brought the equity valuation down to very attractive levels. Themarkets are trading at a valuation of 12 times one year forward earnings. As the graph shows, in 2008, sensex went to 8000levels and within six months, was back to 16,000. This time also, we expect the recovery to be very sharp once the globalvolatility subsides and domestic growth bounces back.

We expect equity market returns of 20-25% in CY12 backed by 10-15% earnings growth and a P/E rerating of India from 12to 14-15 once growth bounces back to 7%. We believe that markets are very close to the bottom and it is a great time to goout and start building a long term equity portfolio.

7500

12500

17500

22500

02/Jan/07 02/Jan/08 02/Jan/09 02/Jan/10 02/Jan/11

Sensex

Equity Outlook

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Sector View

Sector Stance Remarks

Healthcare Overweight

We believe in the large sized opportunity presented by Pharma sector in India. India’s strength ingenerics is difficult to replicate due to quality and quantity of available skilled manpower. Withthe developed world keen to cut healthcare costs, and a vast pipeline of drugs going off-patent,Indian pharma players are at the cusp of rapid growth. We would bet on the opportunity inGenerics and CRAMS space

FMCG OverweightWe prefer “discretionary consumption” beneficiaries such as Cigarettes and branded garments,as the growth in this segment will be disproportionately higher vis-à-vis the increase indisposable incomes.

BFSI Neutral

Financial sector is undeniably the lubricant for economic growth. Whether the growth comesfrom consumption or investments, credit growth is inevitable. Being a well regulated sector, BFSIin India has good asset quality and capital adequacy ratios. Despite the increasing in interestrates, we believe banks will be able to pass on higher cost of funds to clients as demandremains strong

Telecom NeutralThe regulatory hurdles, competitive pressures and leverage prevent any return to highprofitability levels in the short to medium term. However, incumbents have started to increasetariffs slowly and we believe that consolidation will happen sooner than expected.

IT/ITES NeutralWhile US and European customers of Indian IT companies are in good health, Order inflowsmight slow down in near term. However, in the next few quarters big rupee depreciation willprovide cushion to IT companies earnings .

Sector View

11

Sector Stance Remarks

Automobiles NeutralDemand outlook remains robust with strong earnings growth. Raw material prices havestarted coming down which would boost margins. We are more bullish on two-wheeler andagricultural vehicles segment due to lesser competition and higher pricing power.

Metals NeutralCommodity prices have corrected significantly over the last few months due to concernsabout growth in developed parts of the world. We believe the commodity prices willbounce back once growth recovers and hence would be positive on industrial metals space.

Power Utilities NeutralWe like the regulated return characteristic of this space. This space provides steady growthin earnings and decent return on capital.

Cement UnderweightCement demand will certainly grow over the next three years. But the issue is on the supplyside. We do see an oversupply situation for the next 3-4 quarters.

E&C UnderweightThe USD 1 trillion Infra opportunity is hard to ignore. However, The significant slowdown inorder inflow activity combined with high interest rates has hurt the sector. We will reviewthe stance once the interest rate cycle gets reversed

Energy UnderweightWe would stay away from oil PSUs, due to issues of cross subsidization distorting theunderlying economics of oil exploration and refinery businesses.

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Debt Outlook

• The 10 year benchmark G–Sec yield decreased by 19 bps in December to close at 8.54%.

• There has been a slight easing in the inflation figures, a pause is expected by the RBI and no hike maybe seen in the immediate future though the central bank would monitor the inflation closely.

• In the month of December Moody’s upgraded the credit rating of the Indian government's bondsfrom the speculative to investment grade which would in turn help attract Foreign Institutionalinvestors (FIIs) to the Indian bond market and boost the gloomy economic outlook.

• The AAA rated corporate bonds are giving an yield of around 9.3%.

10-yr G-sec yieldYield curve

(%)

7.6

7.8

8.0

8.2

8.4

8.6

8.8

9.0

9.2

0.0

0.8

1.5

2.3

3.0

3.8

4.5

5.3

6.0

6.8

7.5

8.2

9.0

9.7

10

.51

1.2

12

.01

2.7

13

.51

4.2

15

.01

5.7

16

.51

7.2

18

.01

8.7

19

.5

7.50

7.70

7.90

8.10

8.30

8.50

8.70

8.90

9.10

Debt Strategy

OutlookCategory Details

Long Tenure Debt

With the expected trend reversal in the interest rates, we wouldstrongly recommend investment in Longer term papers. These, whilebeing available at attractive yields, also provide an opportunity forCapital appreciation due to a decrease in interest rates. Hence, thesewould be suitable for both - investors who may want to stay investedfor the medium term (exiting when prices appreciate) and those whowould want to lock in high yields for the longer term.

Some AA and select A rated securities are very attractive at thecurrent yields. A similar trend can be seen in the Fixed Depositsalso. Tight liquidity in the system has also contributed to wideningof the spreads making entry at current levels attractive.

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With the pause by RBI and the expected trend reversal of theinterest rates, we would not recommend investment in Shorterterm debt funds unless money necessarily needs to be parked forthe shorter term by the investor. The ST funds still have high YTMs(9.5% – 10%) providing interesting investment opportunities toclients for the shorter term.

Short Tenure Debt

Credit

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Forex

• INR depreciated by about 2% against USD during the month. Also,during the month it did witness a low of 54.24, but recovered aftersome stability was sensed in the International markets. It closed at53.27 at the end of the month.

• The Indian rupee that remained strong in the early part of 2011due to expected inflows, collapsed since August, losing 16.1% in2011. High cost of oil and gold imports and flagging exports led todisproportionately higher demand for the US dollar. Also, thecentral bank's reluctance to intervene aggravated the fall.

• Measures taken by RBI to try and end the speculative tradingactually helped in gaining some control over INR depreciation andthe day after the announcement, the rupee saw one of its biggestever gains when it surged by 140 paise in intra-day trade andended over 100 paise higher from the previous close.

Rupee movement vis-à-vis other currencies (M-o-M) Trade balance and export-import data

• India’s exports grew 3.87% to $22.3 billion in November,2011, compared to $21.49 billion in the same year-agomonth, while imports were up 24.5% at $35.92 billiontranslating into a trade deficit of $13.6 billion. InNovember, 2010, imports aggregated $28.84 billion.

• Capital account balance was positive throughout FY11 andstood at `273133 Cr. at the end of the year. For FY 12, thecapital account is at `93,621Cr. for Q1.

• We expect factors as higher interest rates to attract moreinvestments to India. Increased limits for investment byFIIs would also help in bringing in more funds thoughuncertainty in the global markets could prove to be adampener.

-10000

40000

90000

140000

FY 10 (Q2) FY 10 (Q3) FY 10 (Q4) FY 11 (Q1) FY 11 (Q2) FY 11 (Q3) FY 11 (Q4) FY 12 (Q1)

Capital Account Balance

-16000

-14000

-12000

-10000

-8000

-6000

-4000

-2000

0

-20

0

20

40

60

80

100

Export Import Trade Balance (mn $)

-3.00%

-2.50%

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

USD GBP EURO YEN

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Commodities

Precious

Metals

Oil & Gas

Oil is likely to be supported until first half of this calendaryear on renewed tensions over Iran. The economic datafrom US in December further support prices on the backof expected recovery amid manufacturing activity in Chinaand India expanded, while concern persisted that furthersanctions against Iran may disrupt supply. Expect oil totrade firmer in the first quarter.

Crude

GoldGold gained 10% in 2011, rallying for an 11th year, asinvestors bought gold to protect their wealth from marketvolatility due to the Euro zone debt crisis. The yellow metalcouldn’t move up in the recent times despite of bullishnews; triggering concerns of safe haven investments andmomentum selling from the hedge funds as it was the onlyprofitable investments among other asset classes. Weexpect gold to exhibit weakness this calendar quarter andmay correct in the near term. Nevertheless, the recent Irantensions and rupee depreciation should support domesticgold prices.

15000

17000

19000

21000

23000

25000

27000

29000

31000

75.0

85.0

95.0

105.0

115.0

125.0

135.0

Real Estate Outlook - I

16

Asset Classes Outlook

Residential

In the residential space, low sales volumes have led to a sharp decline in the absorption rate from 21.4% in Q1

2011 to 11.5% in Q3 2011. However, strong pre-launch sales have kept the developers far from any correction.

Though sales have gone down to almost 35% as compared to last year, no correction has been witnessed in the

prices. The over-supplied locations remain stagnant and are expected to remain so for the next two quarters. In

cities like Pune, NCR, Hyderabad, Chennai and Bangalore entry points in the range of Rs. 3000 – Rs. 4600 per

Sqft are still valued by first time home -buyers. Infrastructure development and the new airports in these cities

have supported the residential development. On an average, prices in this segment still remain affordable.

Mumbai stands tall with prices at the peak in an over-supplied market also. Corrections are being reported by

media, however not being witnessed on ground level. The retail investors (second home buyers) and HNI

investors are postponing their decision due to expectations of price correction.

Commercial/IT

Average q-o-q rental growth in 3Q11 was recorded at 2.5%. Mumbai SBD BKC was among the most expensivemarkets and Bangalore and Chennai among the least expensive in Asia Pacific, on the basis of Net EffectiveRents. Among the fastest growing office market in the world, India is constructing 100 million Sqft every 7-10quarters. Office stock is expected to become 500 million Sqft by 2015. The Net Absorption is expected to growfrom 30.5 million Sqft in 2010 to 39.1 million Sqft in 2013. Absorption rate has been recorded at 13.3% in 3Q11.8.5 million Sqft of office space was absorbed in 3Q11 compared to 10.5 million sq ft in 2Q11.

Still in the shadows of over-supply and cautious expansion approach by corporates, this segment has gonethrough a correction. Rates per Sqft have seen almost 30% down-trend and is expected to be stagnant for thecoming 2-3 quarters. After this correction we believe the segment is bottoming out and is the best time to buyfor companies looking at long term holding of real estate office space. With signs of recovery in the globaleconomy, the Indian office markets are expected to be nearing the end of the downturn. Despite improvingdemand conditions, vacancies are rising in the short term due to massive infusion of office space. Markets ofBangalore, Mumbai and NCR-Delhi are leading the property cycle as rentals have started to increase in thesemarkets.

Real Estate Outlook - II

17

The IC note is proposed to be presented every quarter

Asset Classes Outlook

Retail

The FDI allowance has given lot of impetus to this sector. Since 2009 retail has seen a major transformation in all

its business aspects and has been built to suit Indian way of consumerism. Low cost, wide reach, more variety,

less innovation, close existence with competition, maximizing bottom line than top-line approach have been

making the retailers smarter. In the retail space, unorganized markets are still a preferred choice. Most high-

street locations are still expensive. Investors prefer Hi-street locations than malls since they would always have

capital appreciation due to dearth of available space.

Of 9.9 mn sq ft forecasted for absorption in 2011, 7.1 mn sq ft has already been absorbed till 3Q11 and another

1.3 mn sq ft is pre-committed. The northern regions of India rate high on propensity to consume followed by the

western, eastern and southern regions. Industrial towns are similar to each other in consumer preferences and

socio-economic & demographic profiles. Most of them remain equally under-served despite recent mall

developments in the last couple of years.

Land

The trend of investment in land is still nascent since lack of transparency and unclear national land acquisitionpolicy/rules makes it tough for the organized players/investors to transact. However this seems to be a veryinteresting time to buy land which is being traded more as a commodity now. It is getting absorbed fast. Landsees immense opportunity since it can be used as a tangible asset and is the most credible pledge againstbusiness. With the growing commitment of the Government in improving infrastructure (roads, bridges,airports, rail metros), in the last 5 years many far flung areas now have very good connectivity to the CBDlocations.

Why Karvy Private Wealth?

We are an open-architecture firm at two levels – asset class level and product level :• Offering COMPREHENSIVE choice of investing across all asset classes• Offering EXTENSIVE choice of multiple products from different product providers under each asset class

Open Architecture – Widest array of products

Intensive Research

We closely track the historical performance across asset classes, sub-asset classes and product providers to identify, evaluate andrecommend investment products (KPW’s or third-party). We have our own proprietary methodology for evaluating products; forproduct providers, we also note the investment style and risk management philosophy. Our comprehensive analysis determinestruly exceptional performers to be added to your portfolio

When you become a Client of KPW, besides getting intelligent & practicable Investment Advice, you get the benefit of “The KPW 3-S Service Promise” :

• Smooth and Hassle Free – Attention, Service & Convenience• Sharp and proactive – Portfolio monitoring and tracking• Smart –Incisive insights on markets and Investment products

The KPW 3-S Service promise:

Group-wide, we have no Mutual Fund or Insurance products of our own unlike most of the financial services groups (banks orbroking houses), who are doing wealth management. Neither do we have exclusive tie-up with any single insurance company likeall banks do.

Honest, unbiased advise

18

A talented team of leaders with global and Indian experience, having a unique blend of backgrounds of wealth management,private equity, strategy consulting and building businesses powers Karvy Private Wealth and its operations.

Pedigreed Senior Management Team

19

Disclaimer

The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group companies. The information containedherein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completenessthereof. 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 decisionsbased on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While actingupon any information or analysis mentioned here, investors may please note that neither Karvy nor any person connected with any associatedcompanies 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 fromtime 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 ofshares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. Allemployees 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 consulttheir respective tax advisers to understand the specific tax incidence applicable to them. We also expect significant changes in the tax laws oncethe new Direct Tax Code is in force – this could change the applicability and incidence of tax on investments

Karvy Private Wealth (A division of Karvy Stock Broking Limited): Operates from within India and is subject to Indian regulations.

Mumbai office Address: 702, Hallmark Business plaza, Sant Dnyaneshwar Marg, Bandra (East), off Bandra Kurla Complex, Mumbai 400 051

(Registered office Address: Karvy Stock Broking Limited, “KARVY HOUSE”, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad 500 034)

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No.: INP000001512”

20

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