ADVICE for the WISE

Newsletter –August’11

1

Economic Update 4

Equity Outlook 8

Debt Outlook 12

Forex 14

Commodities 15

Index Page No.

Contents

Real Estate 16

2

Dear Investor,

The turmoil in financial markets across the globe caused by therating downgrade of US Government debt by S&P will continue tohaunt the Indian markets also for quite some time to come. Whilethere have been several heated exchanges between S&P and UStreasury over the accuracy of credit analysis done by S&P, webelieve that the ratings downgrade is in line with politico-economic realities in the US – especially a dysfunctional politywhich has led to the recently witnessed brinkmanship regardingraising the US debt ceiling. On the other hand, we certainly do notview this development as a sharp increase in the likelihood ofdefault by the US government.

During the next few weeks we will watch the real effect of theratings downgrade percolate into the debt markets globally –primarily through the actions of US treasury debt investors. On thereal economy the impact will be felt through the subduedconsumption and investment sentiment definitely in the US andpotentially in the rest of the world as well. The financial markets’participants on the other hand will essentially be trying to secondguess these effects and also each other in terms of the reaction tothis development. That points in two broad directions. Flight tosafety and dumping of risky assets. Both of these may translateinto the global investors reducing their exposures to emergingmarkets significantly – at least in the near future. Hence ouroutlook on Indian equity markets is very cautious in the near term.

Unnoticed through the global activity has been the subtle butdefinitive improvement in the determination of the presentgovernment to revitalize the reforms process. While theworries on fiscal deficit and current account deficit stillremain, the recessionary worries in the rest of the world maybring about a welcome relief in commodities prices globallyand hence a downward pressure on inflation in India as well.This will auger well for the debt markets directly as RBI maythen pause the interest rate hikes after maybe another 25 bpsincrease. Also for the equity markets this may come as a goodnews – indirectly through an expectation of future reductionin interest costs and directly through reduction in commodity-linked input costs. Hence we maintain out positive mediumterm outlook for Indian equities. We have also becomeneutral on long term debt owing to the above.

We have suggested specific strategies based on Nifty and Goldto play on the US debt crisis and specific single stocks in retailand mining sector along with Nifty short to play on thehoped-for reforms in the monsoon session in the parliament.These are opportunistic bets on special situations which wehope will help build our clients wealth through theseturbulent times.

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.21”

3

As on 31st

July 2011 Change over last month

Change over last year

Equity markets

BSE Sensex 18197 (3.4%) 1.8%

S&P Nifty 5482 (2.9%) 2.1%

S&P 500 1292 (2.1%) 17.3%

Nikkei 225 9833 0.2% 3.1%

Debt Markets

10-yr G-Sec Yield 8.45% 13 bps 65 bps

Call Markets 7.65% (10 bps) 275 bps

Fixed Deposit* 9.25% 100 bps 325 bps

Commodity markets

RICI Index 4034 2.3% 26.7%

Gold (`/10gm) 23211 5.8% 30.6%

Crude Oil ($/bbl) 116 3.8% 53.5%

Forex

markets

Rupee/Dollar 44.15 1.3% 5.2%

Yen/Dollar 77.82 4.1% 11.1%

Economic Update - Snapshot of Key Markets

10 yr Gsec

Gold

* Indicates SBI one-year FD

80

85

90

95

100

105

110

115

120

125

130 Sensex Nifty S&P 500 Nikkei 225

15000160001700018000190002000021000220002300024000

42.00

43.00

44.00

45.00

46.00

47.00

48.00

30-J

ul-

10

30-A

ug-

10

30-S

ep-1

0

31-O

ct-1

0

30-N

ov-

10

31-D

ec-1

0

31-J

an-1

1

28-F

eb-1

1

31-M

ar-1

1

30-A

pr-

11

31-M

ay-1

1

30-J

un

-11

31-J

ul-

11

`/$

6.80

7.30

7.80

8.30

8.80

4

US

Europe

Japan

Emerging economies

• The HSBC China Manufacturing Purchasing Managers Index is down at 49.3 inJuly from 50.1 in June as total new order growth eased to near-stagnation amidreports of lacklustre global demand.

• The retail sales was up by 17.9 percent year-on-year basis in July.

• The Conference Board Consumer Confidence Index, which had declined in Juneto revised 57.6, improved slightly in July to 59.5 because the short term outlookon jobs & income eased amid a mix of optimistic and bad economic news in US.

• The m-o-m unemployment rate declined to 9.1 per cent in July 11.

• Euro-zone PMI fell to 51.1 in July from 53.8 in June 11. The slowing was due tonear stagnation of inflows of new business & output growth.

• Unemployment rate in the Euro zone remained unchanged in June‘11 at 9.9%.

• The Japan Manufacturing Purchasing Managers Index (PMI) increased to 52.1 inJuly from 50.7 in June, mainly due to renewed new order growth & easing supplyside pressures.

• Japan’s unemployment rate fell to 4.6% in June ’11 from 4.5% in May ’11

Economy Update - Global

5

Economy Outlook - Domestic

• The GDP growth rate for Q4 FY11 came in at 7.8% thelowest in the year while the Q1 estimates for Q1 and Q3were revised upwards to 9.3 (from 8.9) and 8.3 (from anearlier 8.2) respectively. The economic growth for the year,is 8.5% for 2010-’11 backed by improved farm output andgrowth in the services sector.

• The slowdown in the rate of growth in the last quarter wasdue to poor performance of the manufacturing sectorwhich grew at 5.5% v/s the 15.2% growth last year. Aslowdown was also seen in the mining, trade and hotelswhile services, including banking and insurance witnessedgrowth in the last quarter.

• The next year growth target is 8% which we believe isachievable.

IIP monthly data

GDP growth

• Industrial output as measured by the Index of IndustrialProduction (IIP) decreased to a nine month low of 5.6%in May from a downward revised number of 5.8% (y-o-y)in April. This data was according to the new base year(2004/05), new components and weightings.

• During the month, while manufacturing registered 5.6%growth, mining grew at 1.4%, reflecting a delay inenvironmental clearances and transportationbottlenecks. The electricity sector grew at a robust10.3%. Capital goods grew at 5.9% while Consumergoods were up 5.4%. Of the 22 industry groups in themanufacturing sector, 14 witnessed a positive growth.

• The IIP figures have been very volatile in the last year.We believe that monthly indicators and IIP in isolationmay not a very efficient way of indicating long termgrowth. We expect the growth to eventually moderateout though high input costs may also be a dampener formanufacturing.

4.0

5.0

6.0

7.0

8.0

9.0

10.0

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

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11Mar 11 Apr 11 May 11

6

Economic Outlook - Domestic

• Bank credit growth rose to 21.9 percent in June*from 21.8 percent in the month of May whileDeposits grew by 20.4 percent compared to 16.6percent in May 2011.

• Even though the interest rates have been increaseddrastically over the last one year, we have seen ahigh credit demand. Banks have also increased theirdeposit rates and the current rate hike of 50 bps maypush the deposits rate even higher but with theincreased cost of borrowing, we may see somemoderation in the credit offtake in the comingmonths. If the macro factors like inflation persist, wemay see further hike in the interest rates in the year.

• Inflation as measured by WPI increased to9.44% in June from 9.06% (y-o-y) for the monthof May 11. The number for April was revisedupwards to 9.74% from an earlier estimate of8.66%. The increase was driven by higher fuelcosts and manufactured goods prices whichincreased to 12.85 (v/s 12.32% in May) and7.43% (v/s 7.27 in May) respectively.

• We do expect WPI inflation numbers tomoderate out eventually due to the monetarytightening stance by RBI, but below normalmonsoons and increasing fuel prices may be acause of worry.

Growth in credit & deposits of SCBs

Wholesale Price Index

* End of period figures

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11

Bank Credit Aggregate Deposits

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

Jun

-10

Jul-

10

Au

g-1

0

Sep

-10

Oct

-10

No

v-1

0

Dec

-10

Jan

-11

Feb

-11

Mar

-11

Ap

r-1

1

May

-11

Jun

-11

7

Equity Outlook

Stock markets across the world saw a big correction due to the downgrade of US debt rating by S&P. S&P expressed concern about the

long term sustainability of US debt and the political wrangling during the debt limit enhancement negotiations ahead of next year’s

presidential election. This downgrade might increase borrowing costs for the businesses further slowing down macroeconomic activity.

Growth continues to weaken in US with Q2 GDP number coming in at 1.3%, 70bps below consensus expectations. The deficit reduction

program will make any significant fiscal stimulus measure almost impossible. Monetary policy might play a more prominent role in the

near term.

European central bank officials have indicated that they will continue to buy sovereign bonds of Peripheral Eurozone countries which

could help stabilize the debt markets. The fiscal situation of PIIGS countries continues to be fragile and it would require constant support

from the European central bank in the short to medium term.

In July, RBI surprised by a more than expected hike of 50 bps in repo rate and expressed concern about inflation remaining stubbornly

above expectations. RBI has increased the interest rates by 1.25% in last three months. We believe that there could be downside risks to

growth if infrastructure and manufacturing activity slows down further. We would look at a GDP growth forecast of 7.5-8% for FY12 with

a downward bias if the capex story does not revive in the second half.

Back home, the government finally seems to be taking some steps to revive the reform agenda. Increase in administered fuel prices,

clearing of Cairn-Vedanta &Reliance-BP deals and drafting of land acquisition bill are steps in that direction. Q1FY12 results so far have

been mostly inline with expectations. As expected, Private sector banks have led the earnings and we maintain our positive view on the

same.

The S&P downgrade and concerns on global growth might lead to interest rates peaking out earlier than expected. If the correction in

crude continues, it would also help in peaking out of inflationary expectations. Markets are trading at a very reasonable valuation of 13

times FY12 earnings. However, in the immediate short term, Indian markets have also been impacted by the global volatility and we

would advise a cautious stance.

8

Sector Outlook

Sector Stance Remarks

Healthcare Overweight

We believe in a large sized opportunity presented by Pharma sector in India. India’s strength in generics

is difficult to replicate due to quality and quantity of available skilled manpower. With the 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 in Generics 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 in disposable incomes.

BFSI Neutral

Financial sector is undeniably the lubricant for economic growth. Whether the growth comes from

consumption or investments, credit growth is inevitable. Being a well regulated sector, BFSI in India has

good asset quality and capital adequacy ratios. Despite the increasing in interest rates, we believe

banks will be able to pass on higher cost of funds to clients as demand remains strong

Automobiles Neutral

Demand outlook remains robust with strong earnings growth despite raw material price hikes and

raging competition. We are more bullish on commercial vehicle and agricultural vehicles segment due

to lesser competition and higher pricing power.

E&C Neutral

The USD 1 trillion Infra opportunity is hard to ignore. We believe Power sector to be a better play over

other sub sectors such as ports, roads and telecom infrastructure, because of favorable economics

under PPP model. Within power, we like the engineering companies over utilities, T&D and other

infrastructure owners because of their superior profitability and better competitive dynamics.

9

Sector Outlook

Sector Stance Remarks

IT/ITES Underweight

IT space might come under pressure due to continued concerns about growth in developed parts

of the world. While US and European customers of Indian IT companies are in good health, Order

inflows might slow down in near term.

Metals UnderweightCommodity prices are coming under pressure due to concerns about growth in developed parts

of the world. Hence a cautious stance is recommended

Energy Underweight

The regulatory cap on RoE does not allow a vast value creation opportunity in the infrastructure

owning companies. We would stay away from oil PSUs, due to issues of cross subsidization

distorting the underlying economics of oil exploration and refinery businesses.

Telecom Underweight

The regulatory hurdles, competitive pressures and leverage prevent any return to high profitability

levels in the short to medium term. The huge capex incurred in the rollout of 3G services will put

further stress on the already stretched balance sheets. Remain cautious on Sector’s prospects.

Cement UnderweightCement demand will certainly grow over the next three years. But the issue is on the supply side.

We do see an oversupply situation for the next 3-4 quarters.

Power Utilities Underweight

We like the growth prospects of power sector but believe that value will be created by

engineering services providers. Merchant power rates have been sliding downwards and coal

prices have been on the way up putting pressure on return ratios.

10

Mutual Funds in Focus

11

1. Reliance Pharma Fund - With spells of volatility in the current markets, Pharma seems a safer bet for the medium

term. The fund manager has displayed good stock selection skills consistently outperforming the benchmark, following

active management style with a bias towards midcap stocks.

2. Reliance Banking Fund - We remain bullish on the banking sector in the long term and Reliance Banking has been one

of the top picks in the sector. Focused mainly on large cap banking stocks, this fund has been a consistent performer

with superior management.

3. Reliance MIP – This fund invests in a combination of debt and equity with the maximum exposure to equity capped at

30%. In the current volatility, we recommend this fund to add stability to the portfolio owing to higher debt exposure.

The fund management has been superior both in the debt and equity part.

1 year return 3 year return Since Inception AUM (Cr.)Date of

Inception

Sector / Thematic

Reliance Banking 7.4% 30.2% 32.7% 1770 28/05/2003

Reliance Pharma 13.2% 37.5% 28.2% 583 8/6/2004

MIP

Reliance MIP 5.5% 15.2% 15.2% 7,565 13/01/2004

Debt Outlook

• After the unexpected 50bps hike, thebenchmark 10 yr G-sec yield increased from8.33% in June’11 to 8.45% in July ‘11.

• With no respite from the high inflation in spiteof monetary tightening, we expect another 25 -50 bps hike in the year.

10-yr G-sec yield

Yield curve

• With inflationary pressure being high and a 50bps increase in the policy rate, the shorter termyields rallied in the month, though due to partialfactoring in of the hike and relatively increasedliquidity, the increase was not very significant.Corporate bond yields which had ralliedsignificantly on good investment demand prior tothe policy, hardened across the curve trackingthe 50 bps hike announced in the Repo rate.

• We expect yields across the yield curve to remainat elevated levels. High inflation, monetarytightening and rising credit growth will keep theyields at the longer end range bound.

(%)

8.2

8.3

8.4

8.5

8.6

8.7

8.8

0.0

0.9

1.9

2.8

3.7

4.6

5.5

6.5

7.4

8.3

9.2

10

.1

11

.1

12

.0

12

.9

13

.8

14

.7

15

.7

16

.6

17

.5

18

.4

19

.4

6.80

7.00

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

12

Debt Strategy

OutlookCategory Details

Long Tenure Debt

With tight liquidity and inflationary pressure being high, weexpect more rate hikes in the current year. But, if the crudeprices do come down significantly bringing down the inflation,we may see an early peaking of interest rates making long termdebt an attractive investment option. But, this would be moreevident in the coming few days. We hence change our stancefrom negative to neutral.

Some AA and select A rated securities are very attractive atthe current yields. A similar trend can be seen in the FixedDeposits also. Tight liquidity in the system has alsocontributed to widening of the spreads making entry atcurrent levels attractive.

We recommend investment into short term bond funds witha 6-12 month investment horizon as we expect them todeliver superior returns due to high YTM. We have seen theshort term yields harden due to reduced liquidity andconsecutive rate hikes prompted by inflationary pressures. Tillthese factors do not stabilize, we see Short term bond fundsand FMPs as an interesting investment option.

Short Tenure Debt

Credit

13

Forex

• The Rupee appreciated against USD & Euro and depreciatedagainst the British pound and Yen.

• Concerns over renewed sovereign debt crisis & Greek rescuepackage Debt crisis in the Eurozone dragged the Euro downwhile a potential default in U.S. dragged down the Dollar.

• Sterling appreciated against Euro due to renewed worriesabout euro zone debt and the risks of contagion to countrieslike Spain and Italy

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

• Exports for the month of May increased by 46.45% (y-o-y)while imports increased by 42.46% over last year. Thetrade deficit decreased to USD 7.7 bn.

• Capital account balance was positive throughout FY11 andstands at `273133 Cr. for the fiscal while it was 37,298 Cr.for Q4.

• We expect the capital account balance to remain positiveas higher interest rates would make investment in theIndian markets attractive hence drawing investments intothe market.

-10000

40000

90000

140000

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

Capital Account Balance-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

USD GBP EURO YEN

-20000

-15000

-10000

-5000

0

-20

0

20

40

60

80Export Import Trade Balance (mn $)

14

Commodities

Precious

Metals

Oil & Gas

The recent downgrade by US credit rating to AA+ by S&P has triggered a bout of selling across all major asset classes barring precious metals. Gold Futures in the COMEX has climbed to a record $1700 an ounce following investors rush to the safer haven. As commodities are likely to correct following global fund liquidation, any dips in gold prices should be bought. Coupled with the domino effect on global stock markets mayhem, gold is entering into a seasonally strong fourth quarter and gold can only go up. We continue to maintain our year-end target of $1780 an ounce.

The recent bout of global uncertainty have pressurized crude oil amid concern of double dip recession in the US and global economy slipping into red. We expect crude oil prices have topped out in the interim and can only move down from here on. Although, the middle east will be hit by the falling dollar income and might try to limit their production in order to support prices, we believe any such temporary uptick shall not be sustained. This is obviously a positive news for the emerging markets. Expect crude oil to remain under pressure.

Crude

Gold

15000

16000

17000

18000

19000

20000

21000

22000

23000

24000

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

Jul 10

Aug 10

Sep 10

Oct 10

Nov 10

Dec 10

Jan 11

Feb 11

Mar 11

Apr 11

May 11

Jun 11

Jul 11

15

Real Estate Outlook - I

Asset Classes Tier-1* Tier-II**

Residential

Sales are under pressure as usual, Q2 & Q3 of 2011

would clear clouds on possible correction in this

sector. Lot of developers launching new projects

since the existing ones have hit roadblocks due to

high prices. The loading on actual usable area has

seen a sharp rise in Mumbai, Bangalore & Pune,

from an average 20% to 35%, this is another way to

hedge the realty prices. Investors seem to be

interested in under development, pre-launched

projects which clearly give them appreciation

without any possible speculation. RBI credit rate

increase with tightening of construction finance to

developer is only increasing pressure on

developers.

The demand is keeping the Tier II cities afloat, the

infrastructure development in these cities have

made the residential development spread across the

city limits. On an average price is still affordable. Key

development developer are seeing demand of 3BHK

and luxury development but are only doing well if

the project size is limited to 100-150 units. The

trend seems to be favorable since there is lot of

demand comes from smaller cities closer to these

Tier-II & III cities

Commercial/IT

Still in the shadows of over-supply and cautious

expansion approach by corporate, this segment

has gone through correction. Rates per sqft have

seen almost 30% down-trend and will be stagnant

for the coming 2-3 quarters. Surely, the segment is

at the down-tip of the cycle, and is the best

opportunity for companies looking for long term

holding of real estate office space.

Commercial segment not that significant, but unlike

Tier-I the price differentiation is double favoring

commercial since most of them are in CBD areas.

16

Real Estate Outlook - II

17

Asset Classes Tier-1* Tier-II**

Retail

The FDI allowance is given lot of impetus to this

sector, its been now almost 3 years since retail has

seen a major transformation on all its business

aspects and have been built to suit Indian way for

consumerism. Low cost, high reach, heavy variety,

less innovation, existence with competition,

maximizing bottom line than top-line approach

have been making the retailers smarter. Revenue

share model with a built in MG is how the deals

are done

Retail is slow in these markets; unorganized markets

are still a hot choice. Most high-street locations are

expensive to own thus have a high lease rental and

have witnesses heavy churn. Investment would

always have capital protected due to dearth of

available space.

Land

Most interesting times, traded now more as

commodity, very fastly getting absorbed, locked.

Non-real estate sector see immense opportunity

since it can be used as tangible and most credible

pledge against business

Still available cheaper, plotted development is a hit

since the trend of standalone homes are prevalent.

*Tier I markets include Mumbai, Delhi & NCR, Bangalore, Pune, Chennai, Hyderabad and Kolkatta

**Tier II markets includes all state capitals other than the Tier I markets

The outlook is updated on a quarterly basis

Javdekars (Pune) NCD’s at 18%-Series IV

Overview

• An unlisted secured NCD issue with a fixed coupon of 18% per

annum. NCD is a debt instrument used to raise short-term

loans from HNIs. The funds raised through this issue will be

utilized by the developer for aggregating the land for an

upcoming residential project in Tathawade in Pune.

Product Features

• Issue Size – `5Cr

• Tenure – 24 months extendable by 6 months

• Denominations: ` 10,00,000, `15,00,000 and ` 25,00,000

• Fee Structure –

• Guaranteed Coupon – 18% p.a.

• Frequency of Interest – Monthly

• Principal repayment – 4 equal quarterly installments

Attractiveness

• The cash flow schedule is very attractive driven by interest

inflows and principal repayment starting early. A good

proportion of the total return is realized over the tenure of the

product through regular monthly payouts starting from the

second month itself. This considerably reduces the risk to total

returns for investors.

• The debentures are secured with a security cover of at least

two times the outstanding debenture amount. Both the

principal and the interest are securitized and hence the default

risk is negligible.

• The IRR for this structure stands at 19.5%. This can give a

considerable boost to the overall returns of one’s fixed income

portfolio.

• This product is a good bet on the high interest rates prevalent

in India now. The investors can lock in high yields which are

not likely to increase much further.

18

Investment < 25L Investment > 25L

2.5% Upfront (1.5% Setup, 0.5% p.a. Management fee)

2.0% Upfront (1.0% Setup, 0.5% p.a. Management fee)

BSLI FORESIGHT

19

BSLI Foresight is a first of its kind Type II unit linked insurance plan that provides an option to enhance the investment returns by applying the concept of “Best Day Possible” – for both the investments as well as locking of gains.

•Foresight is 5 pay 10 year unit linked plan offering 10 different funds under self managed plan .

•Exclusive Foresight fund is offered under guaranteed option. It is 2nd generation fund of the Platinum fund series.

•The investor in foresight fund would benefit from the steep fall in the market and not merely by capital protection of Rs 10 NAV.

•It also offers the highest Net Invested Premium value achieved during the first 7 policy years.

•On death of life assured Fund Value and the Sum Assured is paid to dependants.

•Lower costs and good fund management: The lower costs associated with the product backed up by strong fund management make this an ideal investment option when compared with its peers.

•Fund Performance: A snapshot of the fund performances of funds having a similar mandate are as follows:

FUND PERFORMANCE AS ON 31st MARCH 2011

Category Fund name 1 year2

years3 years

Since

Inception

Highest NAV

Foresight **

Platinum Plus I 12.2% 32.3% 5.6% 7.0%

Platinum Plus II 13.7% 39.2% ** 24.3%

Platinum Plus III 12.3% ** ** 16.2%

Platinum Plus IV 14.6% ** ** 12.1%

Platinum Premier 12.1% ** ** 14.7%

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

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

20

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)

SEBI registration No’s:”NSE(CM):INB230770138, NSE(F&O): INF230770138, BSE: INB010770130, BSE(F&O): INF010770131,NCDEX(00236,

NSE(CDS):INE230770138, NSDL – SEBI Registration No: IN-DP-NSDL-247-2005, CSDL-SEBI Registration No:IN-DP-CSDL-305-2005, PMS Registration

No.: INP000001512”

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Contact Us

Bangalore 080-26606126

Chennai 044-45925923

Delhi 011-43533941

Hyderabad 040-44507282

Kolkata 033-40515100

Mumbai 022-33055000

Gurgaon 0124-4780222

Email: wealth@karvy.com SMS: ‘HNI’ to 56767 Website: www.karvywealth.com

Corporate Office : 702, Hallmark Business Plaza, Off Bandra Kurla Complex, Bandra (East), Mumbai – 400 051

Goa 0832-2731822

Pune 020-30116238

Noida 0120-4255337

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