D e c e m b e r August 2009

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Magnum ConnectIssue No. XII August 2009

Monthly Magazine

Subscription :-Cover Price: Rs 30/-Annual Subscription (12 issues) : India Rs 300/-Overseas (Airmail) US$ 150(Cheque/D.D. drawn on Mumbai in favour of

Magnum Wealth Management Pvt. Ltd.Regd. Office :Mr. Piyush K. Upadhyay (Correspondent)Magnum ConnectD-13, Empire Mahal, 806, Dr. B. A. Road,Khodadad Circle, Dadar T.T.,Mumbai – 400 014.For General Enquiries Contact :+91-22-2415 8686E-mail : mconnect@magnum.co.inWebsite : www.magnum.co.inPrinted at : HariOM Printers, Mumbai.

Dear Friends,

Our markets have shown great heart to make a comeback after initial troubles in the month. The markets seemed unhappy with the Budget early on; however, very soon things got back on track on hopes that the finance ministry has considered higher growth as a priority and may take care of the others in the subsequent years or even in the coming months outside the budget. It seemed that investors were somewhat convinced that there aren’t any fundamental shortcomings in the budget and whatever disappointments were only because of high expectations. Plus, encouraging earnings reports gave investors new grounds to be buoyant about the economy.

No doubt, times are still difficult but its good to see that companies aren’t doing as badly as many thought. Many firms took efforts to cut costs to generate profits well beyond the market’s expectations. Also, some specific stock stories making people confident. Not only our markets, but globally stocks did well in the month. We’ve seen Dow ending best July in 20 years. So, things have definitely improved and this has reflected in the stock markets. In short, bullish sentiments are now prevailing and investors have been keen on entering markets on fear of missing the rally.

Other good thing is that the outlook for emerging markets like ours remains positive mainly because of relatively strong fundamental characteristics and faster growth than our developed counterparts. More importantly, foreign investors believe that the current valuations of emerging markets are still attractive.

Things should not be tough from hereon, however, we’ve had such a run and that too so quickly that chances of seeing a correction cannot be negated. So, it’s wiser to be cautious and consider fundamentals and not let greed or fear take over your emotions.

Jayesh R. Dedhia(Director)

Magnum Group

This document has been prepared by M/s Magnum Wealth Management Pvt Ltd and is being distributed in India byM/s. Magnum Wealth Management Pvt Ltd a registered broker dealer. The information in the document has been compiled by the research department.

Due care has been taken in preparing the above document. However, this document is not, and should not be construed, as an offer to sell or solicitation to buy anysecurities. Any act of buying, selling or otherwise dealing in any securities referred to in this document shall be at investor’s sole risk and responsibility.

This document may not be reproduced, distributed or published, in whole or in part, without prior permission from the CompanyM/s. Magnum Wealth Management Pvt Ltd

Subject only to Mumbai jurisdiction

IndexCover Story Steel Sector........................................................ 2Equity

Company Research........................................... 5 Stock Update..................................................... 7Corporate News................................................. 8Market Snapshot............................................... 10

EconomyQuick Review of Economy............................... 12Economy News................................................. 16

StatisticsScorecard.........................................................18Dividend Yield.................................................. 20High PE ........................................................... 21Low PE ............................................................ 22 Sales............................................................... 23Price Trends..................................................... 24

Mutual FundSectoral Mutual Fund Analysis......................... 25MF Scorecard................................................... 26

StudyDerviative Strategies......................................... 31Some Investment Essentails............................. 33

InsuranceGeneral Insurance............................................. 35Life Insurance................................................... 36

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with the production of 12.9 MT in the same quarter last year.

Medium term prospects for the Indian steel production remains strong too. India’s capacity expansion projects are still on track. Although some projects have been delayed, there have been no announcements of cancellation of major projects. For example, Korea’s Posco has delayed its 12 million tonne per year steel mill but there is neither cancellation nor scaling down of its plan. Similarly, JSW Steel said that it will continue its expansion plan with a new 3 million tonne blast furnace which will make it the largest blast furnace operator in India.

Global Scenario The crisis that caught hold of the world financial system after the collapse of Lehman Brothers in September last year and the following economic downturn brought about a massive and regionally synchronised global decline of steel demand in late 2008. The trend has continued in most of the world in the first half of 2009. Demand may start to improve in the second half depending on the extent and effect of government stimulation packages, sustainability of the apparent stabilisation of financial systems and a return of consumer and investor confidence.

The World Steel Association has forecasted global steel demand to fall by around 15% in 2009 to 1,018.6 MT after declining by 1.4% over 2008. The decline is likely to be quite broadly based across developed economies and most of the developing world as well. A substantial proportion of the decline in world steel demand is attributable to the US. According to the WSA, apparent steel consumption use in the US is likely to fall by 36.6% over 2009. On the other hand, there has been some

India’s steel industry has been more resilient to the impact of global economic slowdown compared with its peers with production picking up early this year after going down in last quarter of 2008. The inward oriented nature of the Indian steel industry is the main reason for better performance compared with global peers. The stimulus package launched by the government in the form of excise duty cut has also helped steel makers turn around the tide quickly.

The global economic turmoil has impacted economic growth in every economy of the world. The developed world including the US and the Euro-zone are set to witness the sharpest contraction in economy since the Second World War years. However, the Indian growth story is relatively intact with the government targeting close to 7% growth in the current fiscal. In the March quarter, the economy clocked better than expected growth of 5.8%. Continued economic growth has helped Indian steel producers go through the slowdown without making any significant production cuts.

Demand RebouncesNotwithstanding the strong adverse impact of the global economic meltdown, Indian steel demand continues to remain better than in most countries. Steel consumption declined in the last quarter of 2008, but bottomed out in December and started increasing in the current year riding on government’s stimulus package and improving auto numbers. The demand is expected to remain strong on the back of the construction industry, which is expecting big government push as the latter tries to boost India’s infrastructure sector.

According to the World Steel Association, India’s apparent steel use is forecasted to reach 53.5 million tonne in 2009, a 1.7% increase from 2008 and is expected to reach 58 million tonne in 2010 an increase of 8% y-o-y.

Production Trend Production of crude steel during the month of June 2009 stood at 4.58 million tonne (MT), a growth of 6.8% compared to May 2008. According to the data released by the Joint plant Committee (JPC), the main producers produced 1.877 MT during this period, showing a growth of 8.6% y-o-y, while the contribution of the major producers and other producers stood at 1.04 MT and 1.81 MT, showing a growth of 6.86% and 5.0% respectively.

Cumulative production in during the first quarter of 2009-10 stood at 13.9 MT, showing a growth of 5.8% compared

Cover Story - Steel

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Cover Story - Steel

signs coming out of China that the massive stimulus package in excess of $500 billion will help the industry cut losses due to slowdown.

In fact, steel prices after remaining subdued for the first four months of the year, have started to pick up some pace. Steel prices for cash settlement on the London Metal Exchange had crashed massively from an average of $794 per tonne in September 2009 to $307 per tonne in November. Since then, the prices remained range bound till March. However, from April onwards, prices have been inching up at the LME touching an average of $398/tonne in July.

Nonetheless, the WSA expects Chinese production to decline by 5%. Overall, the Association expects world demand to go down by 14.9%. The cut will be least in the Bric countries which face a decline of 5.9% over the year.

Imports remain stable Import of total finished steel during the first quarter of

FY10 was 1.46 million tonne, registering a decline of 1% as compared to same period last year. The share of non-alloy segment was 1.32 million tonne, registering a decline of 2% while the rest constituted the share of the alloy (including stainless steel) segment. Imports of alloy segment posted a rise of 34%. Overall however, steel imports have so far not shown the kind of surge that many players in industry contended could result due to stronger fundamentals in Indian market comported with the rest of the world.

Item

Steel Import During April – June 2009 (‘000tonne)

Apr-June 09

Apr-June 08

% Change

Non-Alloy 1323.54 1378.26 (-2)Alloy 146.19 108.96 34Total Finished Steel 1469.73 1487.22 (-1)

Source: Joint Plant Committee

Outlook Steel is a metal whose fortunes are very closely tied with the broader industrial and economic performance. The year 2008 was characterised by a sharp slowdown in the industrial activity, initially due to rising inflation, tightening monetary policy and as a result increasing cost and declining margins, and then due to slump in demand. When inflation started softening in second half of 2008, global credit crunch and economic downturn took centre stage and production across the board plunged sharply in the Q4, 2008.

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However, afterwards, in wake of various stimulus measures announced by the government, monetary easing and consequent availability of liquidity, we have seen a pick-up in activity levels in Q4, FY09 which has gone on to improve sequentially in Q1, FY10. All the key indicators of industrial activity including IIP numbers, core sector growth and consumer confidence have either stabilized or are already in a recovery mode. As such, we believe going forward, overall industrial activity will improve, resulting in improvement in steel demand.

Further, the government is focusing on the infrastructure development to keep the economy growing at a respectable pace of close to 7%. The Union Budget has mentioned that the government intended to raise the rate of investment in infrastructure to 9% by 2014. The government is also ramping up the way infrastructure projects are financed in the country to give the much needed boost to the sector. We expect that steel demand and consumption will also get a boost due to increased activity in the infra segment.

However, while the Indian industry remains in favourable demand-supply scenario, the situation is upside down in the rest of the world. As said earlier, global steel consumption is set to contract sharply in 2009. In this wake, a major demand of Indian steel producers has been a hike in import duty. The industry contends that due to forecasted global decline in demand, major steel producers may look to dump their inventories into Indian markets. While the

argument makes economic sense, the import-export data available till June does not indicate any alarming trends.

In any case we believe the government will take a balanced view of the situation. Imposition of export duty may lead to prices hardening further in domestic market, which are already at a premium of 6-8% compared with the international markets. While such a development will boost steel industry, it will harm user industries. Therefore, we do not expect the government to take a pre-emptive stand on issue of imports and come up with protectionist duty until there are clear evidence of surge in imports.

Further, since Indian prices are already at a premium, until the government imposes an import duty, we do not expect much upside in prices from here. In fact, pending an import duty, we believe prices may correct marginally in coming months. Clearly, lack of an import duty will cap the gains that steel producers are likely to fetch from positive demand-supply scenario.

Overall, the scenario in Indian steel industry is relatively bullish compared with most other sectors. Going forward, we expect demand and production to remain strong and prices to remain range bound. However, we do not expect increase in prices of inputs either, and therefore, even if a status quo is maintained in government policy, steel looks attractive. Add an import duty and it will have the best outlook in the industry segment.

Cover Story - Steel

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Company Research

Welspun Gujarat Stahl Rohren BuyWelspun Gujarat Stahl Rohren (WGSRL), incorporated in 1995, is part of the $3000 million Welspun Group. The company has supplied pipes for some of the most prestigious projects including the world’s deepest pipeline project in the Gulf of Mexico, USA. Welspun’s state-of-the-art plants are located at Dahej and Anjar in Gujarat and Little Rock, Arkansas, USA.WGSRL is the manufacturer of high-grade line pipes –submerged arc welded (both spiral and longitudinal), branch pipes (Electric Resistant Welded Pipes-ERW) and coating.The company enjoys the distinction of meeting the stringent

Stock Data (as on 31/07/09)

Current Mkt Price (Rs.) 226.80

52 week High (Rs.) 373.50

52 week low (Rs.) 48.50

Mkt Cap (Rs. Cr.) 42.33

Return in last one Month (%) 12.61

Share Holding Pattern(as on June 30,09) %

Total Promoter 44.03

Institutions 26.04

Non Institutions 29.93

Key Ratios

P/E 14.08

Price/Book(x) 2.27

Dividend Yield (%) 0.66

ROCE(%) 19.24

ROE(%) 23.63

requirements besides supplying highest recognized X 80 grade and 56” outer diameter line pipes in the country.

ManagementThe management of the company is led by Balkrishan Goenka, Managing Director. Murarilal Mittal is the Executive Director - Finance, while Braja K Mishra is the CEO & Executive Director. Other directors of the company include Rajesh R Mandawewala, Raj Kumar Jain, K H Viswanathan, Ram Gopal Sharma, Nirmal Gangwal and Asim Chakraborty.

Business OverviewWelspun Gujarat manufactures LSAW, Spiral and HFIW pipes, coatings and also manufactures Plate-cum-Coil. Welspun is amongst the few companies, which has filed patents in the United States for the new welding processes and has also attained level 3 automation in the Plate Mill supported by digital controls.The Little Rock, Arkansas, USA manufacturing facility of the company was commissioned in February 2009 and is API certified, capable of producing 350,000 tonnes of HSAW pipes annually for the use of the oil and gas industry. The facility can produce pipes from 24 to 60 inches as outer diameter; 6 mm to 25 mm as wall thickness and length of 40-80ft. It also has coating and double jointing capabilities.Plate-cum-Coil Mill manufacturing facility of the company is first of its kind in India and is amongst the few technologically advanced mills in the world. This backward integration at Anjar, Kutch, Gujarat. The mill has annual capacity to produce 1.5 million tonnes of Plate and Coil with plates (up to 4.5 meters wide, 140 mm thickness) and Coil (up to 2.8 meters wide, 25 mm thickness) with strength of 120,000 PSI.The company is setting up additional unit, with a capacity of manufacturing 4,50,000 MTPA of pipes. It will have a capacity to manufacture 3,00,000 MTPA of LSAW and 1,50,000 of HSAW pipes .The additional unit is expected to be completed by first quarter of 2010.

Result Analysis• PAT before extraordinary items of the company was up

by 94.3% from Rs 71.14 crore to Rs 138.2 crore for the June quarter. However PAT for the quarter includes extraordinary gains of Rs 37.5 crore on account of reversal of foreign exchange provisions as the company has adopted the amended provision of AS-11.

• Net sales of the company for the quarter ended June 30, 2009 surged by 72.40% to Rs 1879.80 on a Y-o-Y basis.

• The earning per share stood at Rs 7.38 against Rs 3.89 in the June 08 quarter.

• Operating Profit Margin of the company stood at 16.33 while the Net Profit Margin was 7.35.

Performance in the last year

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Particulars June Qtr 09 June Qtr 09 Growth % FY09 FY08 Growth%

Net Sales 1879.80 1090.36 72.40 5878.31 4010.40 46.58

Total Income 1883.80 1096.73 71.76 5896.190 4029.00 46.34

Other Income 4.00 6.37 -37.21 17.88 18.60 -3.87

PBT 209.05 106.97 95.43 353.60 534.20 -33.81

PAT 138.21 71.14 94.28 233.57 351.40 -33.53

EPS (Dil) 7.38 3.78 -- 12.50 18.89 --

Company Research

Industry OverviewThe steel pipe industry in India consists of firms mainly engaged in manufacturing seamless or welded steel pipes or tubes or ferrous metal pipe or tube fittings.

The building & construction industry along with the oil & gas sector are the major marketplaces for pipes. With the construction market booming and further development of new markets for steel pipes ranging from commercial farming to water pipes, the future of steel tubing industry certainly looks bright.

Growing oil and gas demand across the world and the zeal with which oil companies are investing on adding pipeline infrastructure promise higher revenues for Indian steel pipes makers. A huge pent-up demand for pipes has cropped up over the last few months. For the refining industry, pipes are the most economical way to transport oil and gas.

The pipe industry is expected to experience considerable change and varying growth rates in these uncertain economic times. India is one of the major exporting nations including Indonesia, Malaysia and Thailand and the coming days will see a great demand in the product not from the domestic market but from the global markets as well.

Current Development The company has recently informed that it has bagged orders worth Rs 960 crore from India and overseas for producing pipes and others. With the addition of these orders, the current order book of the company stands at Rs 8,700 crore.

Welspun-Gujarat Stahl Rohren in its recently held Extra Ordinary General Meeting has passed a resolution to issue securities up to $250 million or its Indian rupee equivalent thereof.

The company has announced the demerger of its Plate-cum-Coil mill into a 100% subsidiary. As per the company chief, the demerger will allow focused approach in product development, production, quality control, sales and marketing and overall management.

Recommendation FactorsThe company’s order book stands at Rs 8,700 crore, which is 1.5 times its last year’s sales figure. This indicates that the company has sufficient orders for at least a year. The company has added orders worth Rs 1,200 crore during the quarter under review from domestic as well as international oil & gas majors.

The company is equipped to meet demands for 1.5 million tonne of pipes per annum, for various pipelines as well as for structural applications with heavy wall.

The company’s much awaited coil mill at Anjar is under trial production and is likely to commission by second quarter of the current fiscal. This coil mill has an annual capacity to produce 1.5 million TPA, which would ensure easy access to coils, a critical raw material for its helical SAW pipes segment.

The recently commissioned pipe mill in USA which is capable of producing 350,000 TPA of HSAW pipes is now fully operational. Further the company is setting up a 300,000 TPA HSAW pipe mill in South East India for critical oil & gas & water applications. The above project is likely to be commissioned in the next 12-15 months with an investment of approx Rs 550 crore. With this, the total pipe capacity will be enhanced to 2.1 million TPA, consolidating Welspun’s position as one of the largest line pipe capacity in the world.

The company is adding around 6 lakh tonne per annum kind of a new capacity, additional 3 lakh tonne per annum capacity is being added of which 2 lakh is added into oil and gas space and one lakh is getting added into the water space for the pipes. So from that perspective the company looks handsomely placed in its segment.

With the company consolidating its position as of one of the leading line pipe players especially for critical oil & gas applications coupled with the strong order book & positive industry outlook, the scrip is currently trading at Rs 227 with a P/E multiple of 14.08, we recommend a BUY on the stock at current levels with a price target of Rs 300, for a time horizon of 12 to 15 months.

(Rs. Cr.)

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Stock Update

F JSW Steel’s standalone net profit went up at Rs 340 crore versus Rs 219 crore YoY. Its standalone net sales increased 6% to Rs 3,891 crore from Rs 3,671.5 crore and other income surged to Rs 241 crore from Rs 5 crore. PAT grew to Rs 340.02 crore from 219.35 crore, an increase of 55% over the corresponding quarter last year. Diluted EPS also improved from Rs 11.27 to Rs 17.72, showing an increase of 57% over the corresponding period.

F The company’s EBITDA in the last quarter of 2007-08 was 34%, which dropped to 22% during the quarter in ’08-‘09, a significant decline of 12%. The EBITDA margin also improved from 17.9% to 25.2%. Also, JSW Steel is set to contribute towards industry consolidation by acquiring a small company or two. This move is in line with the company’s plan of becoming the largest steel maker in the private sector by 2011. This would also increase the share of domestic sales to 88% of total production.

F Rupee depreciation by 7.5% over the last quarter has reduced over Rs 300 crore of profit on account of the translation losses. It had no impact on the cash profit but due to the accounting practice that the company follows, the profits have been reduced by over Rs 300 crore. The management also expressed that the steel industry is set to benefit from proposals of the government namely, allocation to Housing, NHAI, Railways, JNNRUM, APDPR worth Rs 458 billion ($9.6 bn) apart from plan expenditure of Rs. 3,251.5 bn ($67.9 bn).

F At the current price of Rs 688, the stock is trading at EV/EBITDA multiple of 3.1 of FY 2111E earnings and looks to have an upside potential of 4% from the current levels.

Last Traded Price (as on 31/07/09) Rs 668

Price target Rs 710Market cap. (Rs cr.) 12874.5652 Week H/L 882.3/161.15Free Float 55%BSE code 500228

JSW Steel: Buy

F In the Q1 FY10 Tata Steel India reported sales of Rs 5,554 crore, down 10% over corresponding quarter last year due to fall in realization despite a 22% volume growth. Realizations in ferrochrome segment have declined by almost 61% (from Rs 90,000 per tonne to Rs 35,000 per tonne) over last year. The quarter has also witnessed sales value falling by 14% on decrease in sales volume. Its average realizations for flat products in the Q1 FY10 stood at Rs 30,000 per tonne, an improvement of Rs 2000/t over Q4 FY09.

F The company has posted an EBITDA of Rs 1,742 crore in the first quarter of the current fiscal, a de-growth of 42% over corresponding quarter last year on slipping realizations but an increase of 20% sequentially due to better realizations and cost reduction initiatives taken by the company. Operating margin for the quarter stood at 31%, a decline of 1,769 basis points (bps) y-o-y but an increase of 881 bps q-o-q. PAT for the quarter stood at Rs 790 crore, a decline of 47% y-o-y and 46% q-o-q; but if we remove exceptional item of Rs 776 crore in Q4 FY09, PAT has actually gone up by 16% sequentially. The company’s plan to amalgamate Hooghly Metcoke & Power Company will save logistics cost from Haldia Port to Jamshedpur factory. Tata Steel was able to keep its debt-equity ratio of 0.7 on a standalone basis.

F In the first quarter of the fiscal, the demand for long products has increased due to increased spending on infrastructure. The average realization for flat products was Rs.30,000. Flat products and bearings registered a growth due to increase in demand from the two wheeler industry. The company is now also focusing on retail distribution network.

F At the current market price of Rs 462, the stock is currently trading at forward FY 10 EV/EBITDA of 6.5 and looks under valued by nearly 7%, having a target of Rs 495.

Last Traded Price (as on 31/07/09) Rs 462

Price target Rs 495Market cap. (Rs cr.) 33503.5052 Week H/L 699.90/146.5Free Float 66%BSE code 500470

Tata Steel: Buy

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Corporate News

IOC to ramp up refining capacity to 80 mtpa by 2011-12 Government-owned refining and marketing major Indian Oil Corporation is expected to ramp up its refining capacity to 80 million tonnes per annum (mtpa) by 2011-12 from the present level of 60.2 mtpa. Towards this end, the company has drawn up an investment plan of nearly Rs 60,000 crore.IOC plans to set up a 15 mtpa greenfield refinery at Paradip in Orissa. It is also expanding the capacity of its existing refinery at Panipat to 15 mtpa. Besides a project to enhance the quality of petrol produced at the Panipat refinery is also on the cards. This apart, IOC is considering setting up a naphtha cracker and polymer complex at Panipat at a cost of Rs 14,439 crore.Gitanjali Gems to acquire 70% stake of MobileNXT Gitanjali Gems plans to acquire 70% stake in Bangalore-based mobile retail chain operator MobileNXT through its wholly-owned subsidiary, Gitanjali Lifestyle (GLL). It has entered into an investment cum shareholder’s agreement with MobileNXT for the same.MobileNXT is present across 21 stores in southern parts of the country and in tier 2 and 3 cities and its stores are a one-stop shop-offering a host of telecom related products and services.Hindalco receives lenders consent for relaxation in loan terms Hindalco Industries has reached an agreement and has received lenders consent on revised terms including covenant relaxations relating to the $982 million bank loan. The new terms give the company significant flexibility to plan its future business and pursue its capital expenditure aspirations going forward. Under the new agreement reached, banks have agreed to waive requirement to test covenants on consolidated financials. Maytas Infra gets breather from lenders Maytas Infra, a company owned by Satyam’s disgraced founder B Ramalinga Raju’s family, has got some breather from lenders as they have approved the corporate debt restructuring (CDR) plan for the company.A syndicate of 18 banks, including SBI, ICICI Bank, Punjab National Bank, IDBI Bank and Indian Overseas Bank, has decided to give Rs 100 crore to the company under the CDR plan for its working-capital requirements and also to extend loan repayment schedule. As per the terms of the CDR, the company will get ten years time to repay its outstanding debt of Rs 1,600 crore and will need to start repaying the same after three years.SAIL cancels blast furnace order with Posco The largest integrated iron and steel producer of the country, Steel Authority of India (SAIL) has cancelled the blast furnace construction order that was awarded to South-Korea based Posco E&C last year, as the latter

did not turn up for contract signing even after numerous reminders.The order was worth Rs 2,000 crore for the construction of a blast furnace on engineering, procurement and construction (EPC) turnkey basis for the Bhilai Steel plant of the company which is in the process of doubling its capacity.Reliance Capital plans to foray into the banking sector Reliance Capital, a company led by the Anil Dhirubhai Ambani Group (ADAG), is considering foraying into the banking sector. The company has charted out a plan for next three to five years, which includes entering the banking sector once regulatory clearance has been granted and also expand globally.Mahindra Satyam gets CLB clearance for share allotment Mahindra Satyam has obtained the Company Law Board’s (CLB) clearance to allot over 19.86 crore equity shares to Venturbay, a subsidiary of Tech Mahindra.The company had applied to the CLB for the approval as the open offer by the new owner of the company, Tech Mahindra, got a very sluggish response from the shareholders of Mahindra Satyam. The open offer, which expired on July 1, 2009, had seen just 420,915 shares representing 0.1% of the stake of Mahindra Satyam being tendered.Maytas Infra loses Rs 12,100 cr metro project Maytas Infra has lost the Hyderabad metro rail project worth Rs 12,100 crore as the Andhra Pradesh (AP) government has cancelled the same on the grounds of delay in getting financial closure for the project.In 2008, the company had won the project from the Andhra Pradesh (AP) government but could not achieve the financial closure for the same till the set deadline of March 2009 and had asked for the extension in the deadline. But even after more than a quarter from the first deadline the company could not inch towards financial closure which forced the state government to cancel the allotment to the company.Marico subsidiary to go public in Bangladesh FMCG major Marico has announced that Marico Bangladesh (MBL), a wholly owned subsidiary of the company, has received the approval of the Bangladesh Securities and Exchange Commission (SEC) to its proposal for making an initial public offer (IPO) in Bangladesh.The IPO is scheduled to open in August 2009 and will offer 14,92,100 ordinary shares of Taka 10 each at an issue price of Taka 90 per share (including premium of Taka 80 each). The shares of MBL would be listed in Bangladesh on the Dhaka Stock Exchange and the Chittagong Stock Exchange.Sterlite to foray into commercial power generation segment Sterlite Industries (India), India’s largest non-ferrous metals

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Corporate News

and mining company, is intends to invest Rs 20,000 crore of over the next one year. The company plans to create an additional capacity of 4,500 MW, a step towards foraying into the commercial power generation segment.It is setting up new power projects at Jharsuguda and Lanjigarh in Orissa with combined capacity of 3,150 MW. Further, it also intends to build a 160 MW project at Rajpura Dariba in Rajasthan and another 1,200 MW project at Korba in Chhattisgarh.RIL set to sell petrol in the US Reliance Industries (RIL) India’s largest private sector exploration and production (E&P) major is set sell auto fuels in the US from its Jamnagar refinery soon. The first cargo in two years to the US, which began its journey on June 28, is set to arrive in New York on July 18.The company, which has an existing agreement with Hess, will sell the auto fuel through the company. The Indian E&P major has leased storage from the US company but refused to disclose details.Mahindra Satyam likely to restate accounts by March 2010 Mahindra Satyam (formerly Satyam Computer Services) is likely to restate its accounts by March next year. The company has sought three-month extension of the deadline from the Company Law Board (CLB) from December end to March 2010. However, the latter is yet to act on the request.MTNL appointed as telecom service provider for Commonwealth Games MTNL has emerged as a victor in the race to become the telecom service provider for Commonwealth Games, Delhi 2010. The company will now have a chance to roll out new products and services in the lead up to the Games as well as after that. Plus, it will have a major opportunity to portray itself as a market leader in providing world class telecom and IT related services and to become a global player.Petronet LNG to set up power project in Kochi Petronet LNG is planning to set up a 750 MW power project at its proposed Rs 2500 crore Kochi re-gasification terminal. The terminal is anticipated to be operational by 2011. The company’s board will carry out a pre-feasibility study for the proposed power plant. The investment outlay for this project will be decided after the pre-feasibility study.Morgan Ventures acquires 99% stake in Sudama Technologies Morgan Ventures has announced that it has acquired 99% equity stake in Sudama Technologies on June 23, 2009.Sudama Technologies is engaged in contract farming of jatropha plants in 500 hectare (1250 acres) wastelands owned by farmers in different villages in the state of Madhya Pradesh (MP). Morgan Ventures is a non-banking finance company (NBFC) engaged in the business of fund based and non-fund based activities.Sun Pharma faces investors’ wrath in the US A section of the shareholders of Caraco Pharmaceuticals,

the US subsidiary of Sun Pharmaceutical, has filed a class action suit against the latter claiming that the Indian company failed to disclose adequate information regarding the action taken by the US Food and Drug Administration (USFDA) against Caraco’s facilities.The law firm claimed that Caraco shareholders were defrauded into purchasing shares as the company failed to disclose some vital information that would have affected investment decisions.Idea charts out Rs 6,000 crore expansion plan Idea Cellular, the fifth largest telecom operator of the country, has charted out a Rs 6,000 crore expansion plan for the next two years. Of this, it is looking to invest Rs 1,000 crore in the next three years in Tamil Nadu. The investment plan is part of company’s strategy to become a pan-India telecom service provider by end of current year.Idea has already rolled out Global System for Mobile communications (GSM) services in Tamil Nadu in May this year. It further plans to launch the services in Kolkata, Jammu and Kashmir and North East (telecom circles) in the coming few months.Financial Technologies signs MoU with Invest in Denmark Financial Technologies India (FTIL), a global leader in end-to-end solutions for exchange transaction technology, has entered into a Memorandum of Understanding (MoU) with ‘Invest in Denmark’, an investment promotion arm of the Danish Ministry of Foreign Affairs, Government of Denmark.This alliance will provide communication and liaison support as quid pro quo initiatives between Invest in Denmark and the FTIL Group. Under this MoU, FTIL Group’s Global Alliance Program will define a framework within which they can explore business opportunities and co-operation activities thus benefiting both the countries.L&T launches India’s first nuclear powered submarine Larsen & Toubro (L&T) has played a critical in building India’s first nuclear powered submarine launched on July 26, 2009. Based on the design provided by the Indian Navy and DRDO, L&T’s dedicated submarine design centre carried out detailed engineering, using the latest 3D modelling and product data management software.In addition to being the country’s first nuclear powered indigenous submarine, this is also the largest and heaviest vessel ever built in India.French pharma major acquires majority stake in Shantha Biotec French pharmaceutical major Sanofi Pasteur has acquired a majority stake in Hyderabad-based vaccine major – Shantha Biotec. The acquisition values the Indian company at 550 million euros or around Rs 3,770 crore.The stake buy is a result of the acquisition by Sanofi Pasteur of Mérieux Alliance’s subsidiary ShanH, which holds 80% stake the Indian healthcare major.

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July turned out to be good month for domestic equities. Investors seemed keen to enter the markets after most domestic and global companies registered better than expected corporate earnings and many economic reports signified that the global economy is on the road to recov-ery. It also gave an impression that businesses around the world are combating the economic recession in a much better way and the longest recession since World War II is finally easing its grip. Also, there was a change in attitude among investors. Marketmen were seen putting money into areas that are expected to do well in a recovery after getting to know from their previous experience that investing blindly and purely on momentum puts one in trouble. Markets did see downtrend in the markets in a few sessions; however, the dips were taken as an opportunity to buy stocks having good fundamentals. This shows that the fear that mar-kets will see a major correction has somewhat faded. On the domestic front, there have been reports showing that India’s industrial production was encouraging and manu-facturing, too, was good, especially consumer durables. It gave assurance of the improved economic condition and importantly for investors it suggested that the downside now is limited. The 30-share BSE Sensex gained 1176.47 points or 8.12% to 15,670.31 in the month of July 2009, while the S&P CNX Nifty added 345.35 points or 8.05% to 4,636.45. The BSE Mid-cap index advanced 494.68 points or 9.74% to 5,571.02 and the Small-cap index rose 465.79 points or 8.11% in the month.

BSE Sensex Monthly GainersPrev Price Last Price Chg%

Tata Motors 291.15 421.55 44.79Tata Consultancy 389.70 526.40 35.08Maruti Suzuki India 1065.45 1413.25 32.64ITC 190.45 250.05 31.29Wipro 377.65 490.65 29.92

Tata Motors announced its standalone audited results for the quarter ended June 30, 2009. The company posted a net profit of Rs 513.76 crore for the quarter ended June 30, 2009 against Rs 326.11 crore for the quarter ended June 30, 2008, up 57.54%. Total income for the quarter stood at Rs 6,723.99 crore against Rs 7,244.05 crore, reg-istering a fall of 7.18% on Year-on-Year (YoY) basis.

BSE Sensex Monthly LosersPrev Price Last Price Chg%

Reliance Comm. 289.90 275.65 -4.92Larsen & Toubro 1568.30 1506.60 -3.93Reliance Inds 2023.35 1957.10 -3.27

Reliance Industries (RIL) announced its unaudited results for the quarter ended June 30, 2009. The net profit of the company for the quarter ended June 30, 2009 plunged by 11.53% to Rs 3,636 crore from Rs 4,110 crore reported in the year ago period. Total income decreased from Rs 41,805 crore to Rs 32,757 crore, showing a Year-on-Year (YoY) decline of 21.64%.The successful journey of the domestic stocks in July wasn’t easy one, with markets witnessing worst weekly loss since October 2008 in the early part of the month. For investors, it was the most eagerly waited month as India’s mega event, The Union Budget 2009-2010, was scheduled on July 6. After Congress-led United Progres-sive Alliance (UPA) emerged as the clear winner in the Lok Sabha elections, many believed that the government is in the right hands once again, which will help enhance the economy. There were huge expectations; however, the Union Budget presented by finance minister Pranab Mukherjee failed to win over investors as budget hardly had anything on disinvestment, banking and finance sec-tor reforms. Sentiments were hurt more after the finance minister said that the fiscal deficit may rise to 6.8% of GDP in the year ending March 31.Also, earlier in the month, concerns over delay in mon-soon were seen upsetting markets. Investors seemed to be dejected due to continued adverse reports about mon-soon which caused huge concern that the delayed rain-fall would affect the country’s economy. Also, there was hesitation among investors to enter markets after Group of Eight leaders cautioned that there is still uncertainty and risk involved in global economy. Expectations from com-panies regarding earnings were reasonably low due to the slowdown in the economy. Indian industrial output grew at a more than expected rate of 2.7% in the month of May, lower than 4.1% in the same month last year but much higher than 1.4% in the previous month, as per the data released by the Central Statistical Organisation (CSO). The growth in manufacturing output at 2.5% is nearly half that compared with the same month lat year at 4.5%. Nonetheless, the number still is good enough to indicate a strong recovery in the manufacturing industry. Mining output grew at 3.7% year-on-year (y-o-y) against 5.5% last year while electricity output registered a growth of 3.2% y-o-y against 2% last year. As per the use based classification, intermediate goods recorded a good growth of 6.8% versus 1.9% last year while production of basic goods was up by 3.8% against 3% last year. Capital goods, however, continue to disap-point with a growth of -3.6% against 4.3% last year. The poor capital goods number indicates that government has to incentivise investment in economy by giving some sops for fresh capital formation. Consumer durables were at the top with 12.4% y-o-y growth against just 2.8% last year

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while non-durables continued their poor performance at -2.2% against 9% last year. Overall growth in consumer goods stood at 1.2% against 7.4% last year.In the middle of the month, supportive global cues, en-couraging earning reports from companies, revival of monsoon in most parts of the country and improvement in buying activity by foreign institutional investors (FIIs) helped markets make a strong comeback. The finance minister’s comments that the Indian economy was show-ing signs of pick-up and government proclaiming its inten-tion to come up with new laws to reform the banking and pension industries, permitting greater foreign investment in insurance and showing readiness to disinvest stake in public sector undertaking companies endowed the market with much need support.The Reserve Bank of India (RBI) released its first quar-terly review of monetary policy on July 28 and as expected left is growth forecast at 6% with an upside bias The up-side statement suggests that the bank is waiting for the monsoon season to pan out and see how the shortage in rains from the long term average impact the farm sec-tor. However, the bank left all the key rates including the repo, reverse repo and the cash reserve ratio unchanged. The outcome, however, was no surprise and the bank was widely expected to keep the rates unchanged as there was enough liquidity in the system and inflationary pressures had been expected to pick up going forward.Towards, the end of the month, some pressure was ob-served owing to a fall in share prices of the biggest con-stituent of benchmarks, Reliance Industries and India’s largest consumer products company, Hindustan Unilever on their poor performance in the June quarter. Similarly, India’s largest private sector bank, ICICI Bank turned disappointing on RBI’s decision to maintain key policy rates. Also, a high level of cautiousness was seen ahead of July series F&O expiry. However, earnings reports for the April-June quarter for most domestic as well as global companies turned better than expected, encouraging mar-ket participants to take on more risk in their portfolios and keeping the market supported.

Top gainers on the BSEPrev Price Last Price Chg%

Empower Inds 5.20 17.88 243.85Falcon Tyres 265.85 666.00 150.52Scanpoint Geomatics 5.74 14.05 144.77Ceekay Daikin 26.60 60.65 128.01Prraneta Inds 6 13.02 117

India’s finance minister Pranab Mukherjee expressed optimism on the growth front saying India would contin-ue the present growth levels despite the ongoing global downturn. Growth of the Indian economy slowed down to a five year low at 5.8% in the quarter ended March 2009 as exports declined sharply on global recession and do-mestic demand nosedived too on poor outlook. However, there were positive changes in fundamentals over last few months as the economy gets set to post an earlier than ex-pected recovery. Mukherjee told Parliament that economic

growth was showing signs of improvement with industrial output having bottomed out.India’s headline inflation continued to remain negative for the week ended July 18 at -1.54% compared with -1.17% in the previous week, showed provisional data released by the Central Statistical Organization on Thursday. The de-cline in the wholesale prices from a year earlier is mainly due to a statistical base effect and doesn’t reflect contrac-tion in demand. Economists expect the high base effect to start wearing off by October, setting the stage for a sharp rise in the inflation rate.Among sectoral indices on the BSE, Auto up 25.34%, Re-alty up 21.88%, Fast Moving Consumer Goods (FMCG) up 21.01%, Information Technology (IT) up 20.53% and Metal up 14.44% were the main gainers in the month.Capital Goods (CG), down 1.57%, was the sole loser in the sectoral space in the month.India’s finance minister Pranab Mukherjee presented the Union Budget for 2009-10 in the Parliament on July 6. De-spite the fact that the Budget Speech did not seem pos-sessing big-bang reform announcements as had been ex-pected after looking at the revolutionary Economic Survey that preceded the Budget, it still contained enough material to raise a hope for a stronger economy in medium term. The focus was certainly infrastructure and agriculture. The finance minister said that the government will try to achieve 9% rate of growth for the infrastructure in line with the 9% growth for broader economy by 2014, and also aimed at 4% growth in agriculture in near term. However, the budget speech surely gave one disappointment and that was in form of the fiscal deficit number. The govern-ment raised the budgeted deficit to 6.8% compared with 5.5% targeted in the interim budget. The finance minister did, however, say that the government will try to restore the fiscal health as soon as possible. In July 2009, the Dow surged 8.6%, its best monthly per-formance since October 2002 when it gained 10.6%. The S&P 500 gained 7.4%, its best monthly performance since this past April, when it gained 9.4%. Similarly, the Nasdaq rose 7.8% in July, its best month overall since this last April, when it has surged 12.4%.The initial public offer (IPO) of Adani Power received an overwhelming response from the market with the issue being subscribed 21.51 times. The issue, which closed on July 31, offered 248.8 million shares. The Qualified Institu-tional Buyer (QIB) portion was subscribed 39.44 times, the High Networth Individual (HNI) portion was subscribed 8.5 times and the retail segment was subscribed 2.75 times.The government has started accelerating on its disinvest-ment policy and it is believed that as any as 15 Public Sector Undertakings (PSUs) have been on the radar as respective ministries have been sought to give the feed-back on the feasibility of coming out with initial public offers (IPOs) by then. The Centre is also expected to choose a phased programme for increasing the public float of listed government companies to 10%. The move is likely to im-part either offloading its equity or through follow-on issues, which is expected take place only if need be.

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The global economy is gradually beginning to come out of a recession that caught its hold after a collapse in the last quarter of 2008. The pace of decline in economic activity in several major advanced economies has slowed, frozen credit markets have thawed and equity markets have be-gun to recover.While there have been talks of green shoots all around the world, emerging market economies (EMEs) seem to be running ahead in the race to recovery. Recent months have witnessed industrial activity reviving in a number of EMEs such as China, Korea, Brazil and India. According to the International Monetary Fund, economic growth dur-ing 2009–10 is now projected to be about 50 basis points higher than projected earlier, reaching 2.5% in 2010. Fi-nancial conditions have improved more than expected, owing mainly to public intervention, and recent data sug-gests that the rate of decline in economic activity is mod-erating, although to varying degrees among regions. Notwithstanding some positive signs, the path and the time horizon for global recovery remain uncertain. Consump-tion demand remains subdued as unemployment levels have risen and recovery is expected to be slow, as finan-cial systems remain impaired, support from public policies will gradually diminish and households in countries that suffered asset price busts will rebuild savings. Global RoundupThe deterioration in the global outlook that began in September last year continued in the second quarter of 2009, although some tentative signs of stabilisation have emerged in recent months. Gross Domestic Product (GDP) in the advanced economies is projected to decline by 3.8% in 2009 before growing by 0.6% in 2010. Although the projections are higher than in the April forecast, growth in 2010 would still fall short of potential until late in the year, implying continuing increases in unemployment.

• In the US, real GDP declined at an annual rate of 5.5% in Q1 of 2009, driven mainly by a decline in consump-tion and exports. However, some high-frequency indi-cators point to a diminishing rate of deterioration, in-cluding in the labour and housing markets. Industrial production may be close to bottoming out and the in-ventory cycle is also turning. However, retail sales and

consumption continue to remain weak as households are still engaged in repairing their balance sheets rup-tured by the fall in asset prices. The lower growth trend is likely to persist for some more time.

• In Japan, following a record contraction in the first quar-ter, there are signs that output is stabilizing. Improved business confidence, beginning of inventory restock-ing, aggressive fiscal policies, and strong performance by some other Asian economies are expected to lift growth in the coming quarters.

• In the euro area, real GDP declined by 4.9% in Q1 of 2009 and unemployment rose to 9.5% in May 2009. Al-though measures of consumer and business sentiment have improved somewhat, signs of recovery have been less evident than in the US. Macroeconomic policies are providing support but much of the adjustment in the la-bour market still lies ahead. Rising unemployment will weigh on consumption and activity, as will the econo-my’s heavy dependence on a still-ailing banking sector.

• In the case of Emerging Market Economies, recovery seems to be much faster than the developed world. In its July report, the IMF projected the GDP growth of emerging and developing economies to decelerate to 1.5% in 2009 from 6% in 2008. But the IMF upgraded the growth outlook for most Asia EMEs citing improved prospects in China and India. Industrial production has picked up in a wide range of Asian economies.

Indian Scenario After showing sharp recovery in the last quarter of 2008, the Indian economy started picking some pace in early 2009. The economy grew at 5.8% in March quarter, nearly 50 basis points higher than average analyst expectations. Industrial Outlook Survey of the Reserve Bank of India (RBI), conducted during April-May 2009, showed a turn-around in the business sentiment. The assessment for Q1 of 2009-10 suggests that the slide in sentiment in the pre-ceding three quarters has been arrested on key indicators such as production, order book position, capacity utilisa-tion, financial situation and availability of finance. IIP improves in May Indian industrial output grew at a more than expected rate of 2.7% in the month of May, lower than 4.1% in the same

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month last year but much higher than 1.4% in the previous month, as per the data released by the Central Statistical Organisation (CSO). The growth in manufacturing output at 2.5% is nearly half that compared with the same month lat year at 4.5%. Nonetheless, the number still is good enough to indicate a strong recovery in the manufacturing industry. Mining out-put grew at 3.7% year-on-year (y-o-y) against 5.5% last year while electricity output registered a growth of 3.2% y-o-y against 2% last year. As per the use-based classification, intermediate goods re-corded a good growth of 6.8% versus 1.9% last year while the production of basic goods was up by 3.8% against 3% last year. Capital goods however continue to disappoint with a growth of -3.6% against 4.3% last year. The poor capital goods number indicates that the gov-ernment has to incentivize investment in the economy by giving some sops for fresh capital formation. Consumer durables were at the top with 12.4% y-o-y growth against just 2.8% last year while non-durables continued their poor performance at -2.2% against 9% last year. Overall growth in consumer goods stood at 1.2% against 7.4% last year. India’s industrial output, which had contracted in last cou-ple of months of previous fiscal, turned positive in the first month of the 2009-10, riding on the stimulus measures launched by the government and improvement in domes-tic demand. Cumulative growth in the first two months of the fiscal stood at 1.9% against 5.3% last year. PMI and infra growth signal uptrend to continue The Purchasing Managers’ Index (PMI) for manufacturing stood at 55.3 in June, slightly lower than May’s reading of 55.7. But more importantly, a reading above 50 signifies ex-pansion, suggesting that output in June will be sequentially better than May. Further, the New Orders Index at 58.1 indicated that the recovery will be sustained. India’s PMI in June was in fact highest in world followed by China. Similarly, strong core sector data for June also indicates that industrial output would continue to improve. As per the data released by the government, India’s six core indus-tries registered a growth of 6.5% in the month of June 2009

compared with 2.8% in the previous month and 5.1% in the same month last year. Major contributors to improvement were steel, cement, coal, and electricity. Cumulative infrastructure sector growth during April-June quarter is now placed at core 4.8%, compared to 3.5% in the corresponding period of the previous year. The infra-structure sector accounts for 26.7% in total industrial output, indicating that June IIP figure should be better than May. Monetary Economy RBI leaves key rates unchangedIndia’s monetary authority, the Reserve Bank of India left t India’s monetary authority, the Reserve Bank of India left the key rates including the repo and reverse repo rates along with the cash reserve ratio (CRR) at 4.75%, 3.25% and 5%, respectively. It did, however, signal that it would continue to use the reverse repo window flexibly to man-age the liquidity conditions. The RBI strongly mentioned its commitment to keep ample liquidity in the system in order the help the cause of growth. The bank observed that the year-on-year growth in M3 had remained over 20% throughout the current financial year reflecting easy liquidity conditions. However, the central bank added that the major source of M3 expansion had been the large in-crease in bank credit to the Government while credit to the commercial sector had decelerated.One of the key take away from the July 28 review is that there could be some concerns with regard to rise in infla-tionary tendencies going forward. While the current stance of the bank suggests that first rate cuts may not come until end of the fiscal, as the bank sees inflation at about 5% by end March, 2010, it nonetheless is wary of the way com-modity prices are behaving. The apex bank observed that the WPI inflation turned negative in June 2009 due to the statistical base effect. It expects negative WPI inflation to be transitory, adding that the food prices continued to rise, putting upward pressure on CPI inflation. RBI notes that the decline in WPI inflation has not been matched by a decline in inflation expectations. The RBI thus gave quite clear signals that the thrust of monetary management may move away from a sole focus on boosting demand to giving more weight to inflation in

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coming months. RBI’s talk on the fiscal deficit also seems to provide a signal to the government for getting its fiscal house in order. Going forward, when the bank shifts focus to price stability, the government would need to have a hold on its revenue expenditure scheme to avoid trade-off between growth and inflation.Wholesale inflation remains negative India’s wholesale inflation finally continues to remain in negative zone for seven consecutive weeks. After staying close to zero for many weeks, inflation first entered the red at -1.61% for week ended Jun 6. Since then it has been hovering below the -1% mark in following weeks. Economists had been expecting wholesale inflation to stray into the negative territory for some time and it is first time since 1977, when the new series begin, that the neg-ative inflation is being witnessed. However, this does not mean that prices are going down or the country was facing deflation by any means. In fact, the wholesale price index registered a marginal increase of 0.04% at 232.7. It is the high base effect from last year that is putting up negative inflation numbers when com-pared on year-on-year basis. Further, while the WPI remains in negative terrain, the food inflation continues to give the government worry. In fact, inflation measured against the consumer price indi-ces, which have greater weight for primary and food ar-ticles, continues to remain close to 8-9%. Public FinanceFiscal deficit surges to 6.8%According to the Union Budget for 2009-10, Indian govern-ment’s gross fiscal deficit (GFD) is estimated to be 6.8% of the GDP in 2009-10 against a low of 2.5% projected for the previous fiscal a year ago, as expenditure is expected at over Rs 10 lakh crore and tax collection can take a hit due to the stimulus packages.The fiscal deficit was originally estimated at 2.5% of GDP for 2008-09 but widened to 6.2% after the government cut excise duty rates by 6% and service tax by 2% and in-creased planned outlay to spur the economy, slowing due to the global financial crisis.For the current fiscal, the government retained the tax cuts but increased plan expenditure, particularly for the infrastructure sector, by 34% year-on-year and non-plan

outlay by 37% due to a higher interest burden on account of more market borrowing.Borrowings budgeted at Rs 4.5 lakh croreThe government in the current fiscal is set to raise market loans worth Rs 4.5 lakh crore, way higher than budgeted estimates in the interim budget at nearly Rs 3 lakh crore. The huge increase in government debt can have signifi-cant implications for private investment as rising demand for money will push up market interest rates. In fact, there has been 300% increase in government bor-rowing this fiscal compared to the budgeted estimates in 2008-09. The government pegged its borrowing target at Rs one lakh crore in 2008-09 Budget. However, due to an unprecedented rally in commodity prices and resulting increase in government’s subsidy expenditure forced the government to raise much greater amount of debt at Rs 2,61,972 crore. Rise in debt and resulting increase in interest rate liabil-ity, coupled with slowing revenue growth due to economic slowdown, further increased the income expenditure gap, thus forcing the government to raise the target borrowing for 2009-10 in the Interim Budget at Rs 3,08,647 crore. Apprehensions have been expressed by many quarters that the rise in government borrowing may crowd out pri-vate investment. This is because of the fact that increased supply of government bonds in the market will push the yields upward, thus attracting greater bank money into government bonds rather than private investors’ hands. Since both corporate sector and the government will be competing for the same money, market rates will go up, thus making money costly for the private sector and hence resulting in lower private investment.Direct tax growth plunges to 3.65%Showing the impact of economic slowdown, the net di-rect tax collections during first three months of the fiscal registered a marginal growth of 3.65% only on account of higher tax refund. The government said that collections in the April-June period stood at Rs.59,465 crore, up from Rs.57,373 crore in the same period last fiscal. At the disaggregate level, growth in Corporate Taxes was 3.31% (Rs.35,709 crore as against Rs.34,566 crore), while Personal Income Tax (including FBT and STT) grew at 4.38% (Rs.24,564 crore as against Rs.22,782 crore). During the month of June, net collection during stood at

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Rs.35,307 crore compared to net collection of Rs.34,533 crore during June 2008. Growth in Corporate TDS was 12.1% (Rs.19,584 crore against Rs.17,477 crore last year) and non-government PIT TDS growth was 12.4% (Rs.21,188 crore against Rs.18,849 crore last year) over the month of June.

External Sector Exports plunge 29% in MayDespite the broader economy showing some green shoots, there is no respite for the export sector. India’s exports for the month of May fell at an annual pace of 29.2% to $11 billion, its eighth straight monthly fall as the economic downturn in West kept export demand subdued. Imports also went down, at an even sharper rate of 39.2%, to $16.2 billion, primarily on account of lower cost of oil imports. It also helped bringing down the trade deficit to nearly half compared to year ago level of $11.13 billion to $5.2 billion in May 2009. Exports have been facing the heat of the slowdown since September last year when the collapse of Lehman Broth-ers in the US triggered an acute credit crunch followed by global economic downturn. However, Indian exporters may take relief in fact that other major exporting coun-tries like China, Japan and Germany are witnessing even sharper cuts. Japanese exports for the month of May were down by more than 40%. Economists expect that the decline in Indian exports will come to a halt after September as the high base effect for export data will start tapering off. Exports were showing growth of in excess of 30% till August 2008 and therefore, current year’s exports will show a heavy year-on-year de-cline till August. However, from September onwards the growth of exports came sharply down last year, which will results in better y-o-y export figures for the current year beginning from September or October. Also, there is likely to be some sequential improvement in global economy by then, which will raise the demand for Indian goods abroad, supporting the export sector.Rupee remains volatileIndian rupee started showing some strength in April after having touched a low of Rs 51 per dollar in late March.

The currency recovered slowly against the dollar and hovered around the Rs 49.5-50 per dollar for next one and a half months. However, after the election results came indicating a strong government at the Centre, much against the expectations, the rupee followed the strides made by Indian stock market and rose quickly to close to the Rs 46 per dollar mark by early June. Nonetheless, as dollar starting appreciating against all major currencies, the rupee too slid towards mid July to below Rs 48 per dollar. However, since then, the currency has recovered marginally, and is currently trading in a narrow range of Rs 47-48 a dollar band. OutlookOutlook of both global as well as Indian economy has improved considerably over last couple of months. The recent rally in commodity prices has been strong and broad-based, reflecting improved market sentiment, US dollar depreciation, and commodity-specific factors. In the oil market, prices have responded strongly to perceptions that market dynamics are shifting from significant oversupply to more balanced conditions. However, there also remain considerable concerns as consumer confidence remains somewhat weak and unemployment remains high. Going forward, the pace of recovery will depend on how well the negative forces are tackled by the policy makers. Financial volatility, the sharp fall of global trade and continuous weaknesses in the financial system may continue to slow the recovery even as the collapse of confidence is gradually diminishing. The Indian economy has also been showing signs of rapid recovery over the last few months, much in line with most other emerging economies. There have been considerable improvements, particularly in manufacturing and the economy is likely to have bottomed out from the slowdown that begun last year. The biggest change though has come in form of a stable government at the Centre, tipped to concentrate more on reforms and push for faster growth even as it focuses on more inclusiveness. Although some segments like exports are still witnessing difficulties, industrial growth bottomed in March and has been improving sequentially since then, we are likely to witness a healthy upward trend to develop from here. What is also clear is that the rebound in industrial production is due to domestic demand, which is expected to remain robust in coming months, thus providing enough ammunition to generate a positive momentum in manufacturing. The equity market, too, has surged. After underperforming their Asian peers during first four months of the year, Indian shares jumped after the election results were announced in hope of a stable and progressive government. Overall, Indian economy looks well on the road to recovery. The March quarter results were already better than expectations and we believe the performance will improve sequentially. However, downside risk to the growth remains from agriculture. Monsoon rains have so far been nearly 20% below rains and a significant decline in farm output may pull the GDP down for couple of quarters. Nonetheless, medium term trend continues to improve for the Indian economy.

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D e c e m b e r August 2009

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Economy News

Fertilizer industry wants the government to reassure gas supply Even as the tug of war between the two Ambani brothers continues on the KG basin gas supply, India’s fertilizer industry has voiced concerns over the ongoing dispute and how it may affect the supply of gas to it. The fertilizer industry is concerned that after the judgment of the Bombay High Court according to which Reliance Natural Resources will be getting 28 mmscmd of gas from the KG Basin, there may not be enough gas left for it. The industry has made huge investment in migrating from naphtha to natural gas. In this wake, if supply of gas to the fertilizer plants is discontinued due to the Court’s orders, the industry will suffer heavy losses.Govt initiates ‘ad-hoc’ hike in auto fuel prices The government effected an ‘ad-hoc’ hike in prices of auto fuels, effective from July 2, 2009. Petroleum minister Murli Deora broke away from the routine protocol by bypassing the Cabinet to implement the hike of Rs 4 per litre on petrol and Rs 2 per litre on diesel.According to petroleum secretary R S Pandey, the hike was necessitated as crude prices had doubled to around $70 a barrel, from a low of nearly $35 per barrel touched in December 2008.Coal ministry hints for independent regulatory body The government’s move to open the doors for private sector in coal mining, setting a regulatory body in order to ensure a fair play for new entrants in the sector, assumes prime importance. In this wake, the coal ministry is mulling appointing an independent regulator for the coal sector for development and conservation of coal resources by adoption of best mining practices, rational pricing, better distribution and evolution of a more competitive market. The ministry, however, is silent upon time frame for setting up an independent body as it is the matter of legislation by parliamentary discussion.Oil firms demand refund of service tax retrospectively Oil firms have termed the government’s decision to levy service tax on oil exploration companies as a retrograde step and have demanded to refund it retrospectively. Oil firms have been shelling out service tax, which is draining away a large chunk of funds kept apart for oil exploration.Oil firms have emphasized for formulating a scheme for refunding service tax paid by E&P companies on various critical services. The burden even becomes bulkier as the input service tax of over 12% becomes an unrecoverable cost.Fund houses raise brokerage to 3-4% In order to increase the collections, mutual fund houses have now started aggressively hiking brokerages for distributors as much as 3-4% fearing a lull in inflows after the ban on entry load by Securities and Exchange Board of India (SEBI) taking effect from August 1. Fund houses fear of reduced cash flows on a lull period after the ban on entry load reigns in owing to which they are pushing their schemes aggressively to raise their

assets under management. To top it up, many fund houses have even started offering target-based commission to distributors.SEBI turns down proposal of altering QIP formula Capital market regulator SEBI has rejected investment bankers’ proposal for easing the pricing formula for Qualified Institutional Placements (QIP) issues. Concerned over the liquidity in the stock markets, SEBI had tweaked the pricing formula in August last year and allowed QIP issues to be based on the two-week average share price, prior to this formula, the pricing was based on the higher of the six-month or two-week average share price.Government to set up separate entity for managing expressways To help boost the road sector’s performance, the government is looking to set up a separate entity which will develop and manage expressways in the country. The government is looking to fast track the highway projects which have been languishing for many years. Union road transport minister Kamal Nath said that the new entity will be on the same lines as NHAI. He also added that the transport ministry will ready the plans in three months to send for Cabinet’s approval.Steel production up 3.4% in first quarter India’s steel production registered a growth of 3.4% on year-on-year basis during the April-June period of the current fiscal. India’s union steel secretary P K Rastogi also said that steel consumption in the same period went up by 5.3%. India is the only major steel market where demand and production is set to increase in the current year even as the global steel production declines by 17%. World Steel Association has forecasted around 2.5% steel growth in India in the current year.Finance minister confident of meeting GST deadline Finance minister Pranab Mukherjee recently stated that the government was confident about the GST (goods and services tax) taking off from the targeted deadline of April 1, 2010. The minister also added that the he was in close touch with the empowered committee of state finance ministers and that the committee was hopeful to finish the task in time. The proposed GST has immense potential in terms of simplifying the indirect tax structure in the country as well raising revenue for the government. According to government estimates, the implementation of the GST would generate additional revenue of over Rs 72,000 crore annually.M&A deals slip 41% to $3.3 bn in June quarter In the wake of global financial downturn tightening the knuckles in corporate activities, the country’s volume of merger and acquisition (M&A) has also taken a beating by 41% to $3.3 billion in the June quarter from $5.6 billion in the first quarter of 2009, according to a report by consultancy firm Ernst & Young. Also the transaction value

D e c e m b e r August 2009

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Economy News

has slumped by 80% from $16.5 billion in the Q2 of 2008.The report is hopeful of positive outlook for the rest of the year, but financial market conditions are still seen under pressure as companies are grappling with their liquidity position.Food grain production rises in FY09 despite weather jitters India’s food grain production has increased by little over 1% in the last fiscal despite the weather jitters In some parts of the country. Despite vicissitudes of weather, total food grain production increased from 230.77 million tonne in 2007-08 to 233.87 million tonne in 2008-09 as per the fourth advance estimates. Agricultural output is, however, likely to go down this year as the monsoon continues to remain poor in some parts of the country, especially the northwest India, including key grain producing states of Punjab and Haryana.India-US end use agreement to give push to high-tech trade In a move that can give a significant push to high-tech trade between the two countries, India and the US have agreed to enter into an understanding on the end-use monitoring agreement. While the move will pave the way for greater defence cooperation, it will also allow Indian companies to access dual use technology market in an easier way. However, the development will also provide greater push to technology trade. A clause in the agreement says that if the US is convinced that the company in the recipient country (in this case India) will not misuse the items it was importing, it could give a clean chit to the concerned company that will allow the latter to import high technology dual use or restricted items without the need of applying for a license for every transaction.Govt to re-launch NELP on August 8 The government is likely to re-launch the country’s largest ever auction of oil and gas blocks on August 8 for which the last date of bidding will be mid-October. The government will start the first of the promotional roadshows for 70 blocks offered under the eighth round of the New Exploration Licensing Policy (NELP-VIII) and 10 coal-bed methane (CBM) blocks to be held in Mumbai on August 8.In April this year the government had kicked off the eighth round of auction to give away blocks for exploration under NELP with for which the deadline was August 10. But, due to the ambiguity over on tax holiday for natural gas, the same was deferred.India secures 3rd spot in FDI ranking: Unctad report According to a report by United Nations Conference on Trade and Development (Unctad), India has slipped to third place in global foreign direct investments (FDI) this year as the global economic meltdown has left no shores unaffected. However, the report also says that India will continue to remain in the list of the top five attractive destinations for international investors during the next two years.China has topped the list once again followed by the US, attributed to a surge in investments by Chinese and Indian companies in acquisition of several sick American

firms. The report is confident of a buoyancy in overall FDI prospects in India, expecting Bric countries to hog most of the investment flows once FDI growth starts picking up after 2010. Number portability likely by year end only If the languishing third generation (3G) spectrum auction was not enough, the Department of Telecommunications (DoT) is set to delay the much awaited number portability scheme too, which was earlier expected to be out by the month of September this year. According to Telecom secretary Siddartha Behura, the portability scheme will be out by the year end, which means that it will at least face a delay of three months from the already twice revised deadline. He added that since the scheme was relatively new, having been implemented in a handful of countries yet, there were a number of issues to be resolved that the department was working on.Govt to place 5-year clause on land acquired for road projects With a proposal being tabled for Cabinet consideration by the National Highways Authority of India (NHAI), there is a scheme to return the land to the owner from whom it was taken if it remains unused for five years from the date of its acquisition. The scheme as a part of the amendments to the land acquisition legislation is soon to be tabled in Parliament.Government concerned about rainfall pattern India’s southwest monsoon remains a source of worry for the government despite having picked up in last couple of weeks. Although the Indian Meteorological Department (IMD) continues to stick with its forecast of rains being close to 93% of the long term average (LTA), the spread of monsoon has not been even and northwest parts of the country are facing a whole lot of shortage. With apprehensions of official drought being declared in many areas of the northwest region, finance minister Pranab Mukherjee accepted that there were concerns about the possibility of drought but added that the government had contingency plans in place. Earlier, minister for agriculture Sharad Pawar had said that the monsoon situation was very serious in the states of Bihar, Uttar Pradesh, Punjab and Haryana.FM says need to raise investment rate for higher growth Union finance minister Pranab Mukherjee has said that the country needed higher rate of investment to maintain a higher level of economic growth. In fact, increase in the rate of investment was one of the major reasons that boosted Indian growth for an average of more than 9% over five years preceding the last fiscal. He added that it was possible to return to the 8-9% growth levels by 2010, however, it would require keeping the rate of investment high enough. The minister expressed optimism that manufacturing was bottoming out and industrial production was picking up. India’s industrial output expanded by 2.7% in the month of May. With June core sector growth coming at 6.5%, overall industrial growth is also likely to register a sequential improvement over that of May.

D e c e m b e r August 2009

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Scorecard : Steel

Company Name

YearEnd

NOMEquity

Rs. Mn.FV Promoter

Stk % BVRs.

RONW(%)

Sales Rs. Mn.

Sales Var (%)

OPM(%)

NP Rs.Mn.

NP Var (%)

DIV (%)

CPS(Rs.)

Adhunik Metaliks 200903 12 912.31 10 64.02 33.96 28.09 11776.42 17.23 15.09 301.47 -62.53 12 7.35

Aditya Ispat 200903 12 48.50 10 18.59 11.69 1.69 92.53 25.46 5.16 2.10 82.61 - 0.61

Anil Sp Steel 200903 12 67.89 10 14.17 25.38 7.96 1059.00 4.70 8.13 3.70 -71.97 - 3.07

Bhagwandas Metals 200903 12 36.47 10 53.75 16.42 4.30 486.40 4.51 0.99 2.30 -4.17 - 0.69

Gallantt Metal 200903 12 763.22 10 54.88 14.24 33.10 4411.12 13.55 11.71 141.37 -54.08 - 3.33

Garg Furnace 200903 12 34.49 10 73.82 58.74 3.73 1597.37 -10.53 2.07 8.62 -6.20 - 4.60

Godawari Power 200903 12 280.70 10 58.11 136.83 32.24 10355.40 24.87 12.84 573.60 -39.61 40 29.85

India Steel Works 200803 12 204.27 1 55.08 2.18 40.99 2430.18 188.45 10.90 103.04 -157.98 - 1.15

ISMT 200903 12 732.50 5 51.05 36.05 20.13 13011.30 9.20 19.29 622.10 -37.81 20 8.04

Jai Corp 200903 12 178.45 1 72.99 143.41 8.84 3858.50 25.06 16.00 282.40 -77.96 100 2.44

Jindal Steel & Power 200903 12 154.00 1 58.75 241.63 39.93 76531.90 41.44 34.48 15364.80 24.21 400 127.35

JSW Steel 200903 12 1870.50 10 45.02 406.81 5.86 141584.20 23.98 21.84 4585.00 -73.47 10 68.76

Kanishk Steel 200903 12 284.36 10 70.13 23.64 18.33 3740.07 -9.29 5.19 53.22 -45.67 6 3.57

Lloyds Metals 200903 12 222.58 2 47.78 7.42 70.14 5234.72 58.78 10.20 283.86 26.13 - 4.28

Mah Seamless 200903 12 352.67 5 51.09 155.02 19.35 20915.70 39.66 19.37 2529.30 29.55 100 38.46

Metal Coatings 200903 12 49.04 10 75.85 22.46 9.64 871.73 -24.38 3.84 3.88 -62.66 10 2.11

Metalman Industries 200903 12 117.27 10 29.08 62.39 8.50 3721.20 1.19 5.13 0.70 -98.96 8 2.35

Pennar Industries 200903 12 632.39 5 36.11 10.91 31.70 6532.73 16.47 11.55 380.89 25.09 - 3.68

Rajratan Global Wire 200903 12 43.52 10 59.34 98.66 14.21 1449.84 36.70 12.88 57.27 361.85 10 20.17

Rishabh Digha Steel 200903 12 54.93 10 64.19 14.18 28.76 47.89 -10.80 61.95 15.86 -26.78 20 3.38

Sathavahana Ispat 200903 12 318.25 10 36.13 48.08 26.97 5415.21 51.42 11.29 131.17 -60.23 15 8.29

Shree Steel Wire 200903 12 47.18 10 27.48 9.04 20.54 36.92 6.24 22.89 2.73 -39.47 - 2.30

Shri Bajrang Alloys 200903 12 90.00 10 56.71 16.09 23.83 2000.25 3.57 3.31 19.27 -39.71 10 3.51

Sunflag Iron & Steel 200903 12 1621.98 10 45.20 18.13 15.75 11024.70 10.91 10.82 436.00 -0.07 5 4.60

Suraj Stainless 200903 12 170.09 10 73.03 27.15 33.14 2268.78 -22.05 9.83 60.85 -56.20 15 6.76

Surana Inds 200903 12 201.50 10 61.31 118.11 14.26 8711.34 8.90 11.20 324.96 0.23 15 22.23

Tata Steel 200903 12 7305.80 10 33.95 296.65 26.47 243157.70 23.47 38.83 52017.40 10.98 160 84.52

Technocraft Inds 200903 12 315.27 10 74.97 112.35 9.58 4323.62 31.55 11.44 88.29 -72.88 10 10.46

Usha Martin 200903 12 250.24 1 46.16 40.58 15.32 21366.60 29.03 19.77 1465.60 1.19 100 9.26

Vallabh Steels 200903 12 49.50 10 68.15 60.95 16.35 3030.36 -5.29 3.26 9.37 -55.51 1 7.48

Varun Industries 200903 12 221.14 10 62.02 170.80 8.92 12204.29 37.19 7.07 128.20 -40.02 15 10.79

Vikash Metal & Power 200903 12 351.20 10 58.95 23.87 15.95 5935.77 78.97 5.18 62.13 -50.66 5 3.81

Welspun-Gujarat 200903 12 888.77 5 43.94 83.67 32.94 58783.10 46.58 11.10 2335.70 -33.53 30 19.25

Wires & Fabriks 200903 12 30.56 10 63.59 70.82 8.10 557.81 3.99 21.35 25.46 1.76 15 24.69

Scorecard Legends : NOM - Number of Months for which P& L a/c is prepared by the companies, Equity Rs.Mn - Latest Paid Up Capital of the Company, FV-Latest Face values of equity Shares, Promoter Stk % - Its promoter holding in the equity capital of the company as per latest shareholding pattern, BV Rs. - Book Value Per Share is calculated as (Equity + reserves ) / No of Equity shares, RONW - Return on Net Worth is calculated as {(Net profit - preference capital)/ Shareholder’s Fund }*100.Share- holders funds includes Equity Paid Up + Reserves excluding revaluation reserves - Misc Expenditures Not written off, Sales Rs. Mn - Sales , Turnover & Income from operations,Sales Var% - Percentage Change in Sales over previous period Sales, OPM% - Operating Profit after interest expended as a % of Interest income & income from operation, NP Rs. Mn - Net Profit as reported after Tax, NP Var% - Percentage Change in Net profit over previous period Net profits, Div% - Total % of Dividend Declared during latest Financial year.

CPS Rs. - Cash Profit per Shares, EPS Rs. - Earning Per Shares is calculated as Net Profit / Number of Equity Shares, Sales Rs. Mn - Sales ,Turnover & Income from operations for Latest Quarter, Sales Var% - Percentage Change in Sales for Latest Quarter over previous Corresponding Quarter Sales, OPM% - Operating Profit after interest expended as a % of Interest income & income from operation for Latest Quarter,NP Rs. Mn - Net Profit as reported after Tax for Latest Quarter,NP Var% - Percent-age Change in Net profit for Latest Quarter over Previous quarter Net profits, Ended - Trailing Twelve months Ended On, TTMEPS - Earning Per Shares is calculated as TTM Net Profit / Number of Equity Shares,TTMNP Var% - Percentage Change in TTM Net profit over Corresponding previous TTM Net profits, H52 - High Price during last 52 Week,L52 - Low Price during last 52 Week,PE - Market Price / TTM Earning Per Shares,Market cap Rs.Mn - Market Capitalisation is calculated as Latest price multiplied by No of Equity Shares outstanding.

Scorecard : Steel

Latest Quarter TTM Market DataEPSRs.

SalesRs. Mn.

SalesVar (%)

OPM(%)

NPRs. Mn.

NPVar(%)

EndedEPSRs.

NPVar (%)

Price31/07/09

H52W L52W PEMkt. Cap(Rs. Mn.)

3.30 2338.55 -28.84 19.91 61.63 -73.77 200906 1.42 -565.70 101.20 126.80 20.85 71.30 9232.60

0.41 31.00 4.91 3.26 0.24 -14.29 200906 0.36 30.27 6.93 12.28 3.48 19.10 33.61

0.30 230.10 13.80 10.04 4.10 95.24 200906 0.47 -240.35 8.70 15.84 5.01 18.57 59.06

0.63 92.70 -44.16 1.51 0.60 -33.33 200906 0.49 -50.00 6.40 7.87 2.90 12.97 23.34

1.74 1057.45 -20.21 12.12 44.92 -66.24 200906 0.65 -670.44 15.60 29.10 9.01 23.82 1190.63

2.50 275.24 -57.48 3.11 3.14 -27.48 200903 2.50 -6.50 17.05 35.90 9.65 6.82 58.80

20.43 1919.00 -40.11 14.96 128.90 -66.12 200906 11.47 -248.14 108.70 232.00 41.55 9.48 3051.19

0.50 634.51 59.70 1.12 -33.29 - 200809 0.50 - 4.82 9.68 2.72 9.71 984.58

4.25 2569.40 -24.33 22.74 245.70 144.48 200906 5.24 -24.86 35.50 46.80 14.10 6.78 5200.75

1.58 1078.90 6.35 16.16 91.30 -56.52 200906 0.87 -637.82 228.95 440.30 59.20 - 40855.90

99.35 15761.30 -16.84 36.50 3000.60 -25.41 200906 92.74 3.14 2942.25 3237.00 517.30 31.73 453106.50

24.51 39168.00 6.68 25.23 3400.20 55.01 200906 30.96 -162.40 697.50 882.30 161.15 22.53 130467.38

1.87 464.47 -24.64 14.61 4.71 - 200903 1.87 -84.05 16.35 31.00 11.60 8.73 464.93

2.55 1105.79 -19.01 3.93 -12.35 - 200906 0.24 -1609.40 31.50 76.05 14.00 - 3505.68

35.86 4230.60 20.29 24.68 652.20 8.16 200906 36.56 13.26 253.65 328.00 111.80 6.94 17890.80

0.79 204.17 -37.57 3.84 1.72 -39.65 200906 0.15 -1608.22 6.67 19.70 4.77 44.81 32.71

0.06 891.20 0.68 2.39 -24.10 - 200903 0.06 -9471.43 11.94 19.90 5.52 - 140.02

3.01 1812.05 2.58 13.55 107.81 11.59 200906 3.20 9.52 27.00 35.50 15.50 8.43 3414.89

13.16 314.06 -18.04 12.28 12.66 -46.17 200906 10.66 24.02 68.60 161.00 33.00 6.43 298.53

2.88 4.30 -67.62 62.79 2.00 -75.61 200906 2.07 -154.87 13.30 17.50 7.27 6.42 73.05

3.93 1326.04 27.27 13.48 56.11 -64.30 200906 0.90 -1341.66 27.95 60.80 14.50 31.01 889.51

0.82 9.94 -54.47 17.91 0.21 -95.52 200903 0.82 -65.20 7.70 9.50 3.85 9.34 36.33

2.14 290.22 -51.45 4.16 3.11 -39.02 200903 2.14 -63.57 25.00 36.00 11.00 11.68 225.00

2.69 2850.80 -10.69 13.59 159.60 22.39 200906 2.87 -7.37 20.90 28.40 6.80 7.29 3389.93

3.58 302.39 -43.17 13.42 5.15 -75.98 200906 2.62 -177.46 134.65 222.00 46.75 51.37 2290.28

16.13 1931.66 -1.64 14.06 80.94 -8.27 200906 15.76 -3.36 146.35 153.85 34.15 9.28 2948.95

71.20 56155.50 -8.91 31.85 7898.30 -46.93 200906 61.64 -17.73 462.70 699.90 146.35 7.51 338039.37

2.80 791.09 -20.99 21.48 62.03 -40.63 200906 0.98 -1301.52 32.05 61.90 17.55 32.67 1010.43

5.86 4117.00 -16.05 18.36 134.00 -76.37 200906 4.13 -63.97 50.75 87.50 18.00 12.30 12699.78

1.89 579.18 -36.73 4.03 5.68 -38.13 200906 1.19 -432.37 15.75 28.85 9.51 13.28 77.96

5.80 3881.19 48.94 8.02 69.49 11.90 200906 6.13 - 65.30 72.80 19.70 10.65 1444.04

1.77 1568.77 -4.60 5.31 7.16 -82.10 200906 0.83 -368.75 13.60 24.00 4.63 16.31 477.63

12.52 18798.00 72.40 16.33 1382.10 94.28 200906 16.12 -17.50 226.80 373.50 48.50 14.07 40314.61

8.33 129.79 4.42 17.89 1.21 0.83 200906 8.33 0.94 60.25 68.00 37.10 7.23 184.14

D e c e m b e r August 2009

Magnum

19

Scorecard : Steel

Company Name

YearEnd

NOMEquity

Rs. Mn.FV Promoter

Stk % BVRs.

RONW(%)

Sales Rs. Mn.

Sales Var (%)

OPM(%)

NP Rs.Mn.

NP Var (%)

DIV (%)

CPS(Rs.)

Adhunik Metaliks 200903 12 912.31 10 64.02 33.96 28.09 11776.42 17.23 15.09 301.47 -62.53 12 7.35

Aditya Ispat 200903 12 48.50 10 18.59 11.69 1.69 92.53 25.46 5.16 2.10 82.61 - 0.61

Anil Sp Steel 200903 12 67.89 10 14.17 25.38 7.96 1059.00 4.70 8.13 3.70 -71.97 - 3.07

Bhagwandas Metals 200903 12 36.47 10 53.75 16.42 4.30 486.40 4.51 0.99 2.30 -4.17 - 0.69

Gallantt Metal 200903 12 763.22 10 54.88 14.24 33.10 4411.12 13.55 11.71 141.37 -54.08 - 3.33

Garg Furnace 200903 12 34.49 10 73.82 58.74 3.73 1597.37 -10.53 2.07 8.62 -6.20 - 4.60

Godawari Power 200903 12 280.70 10 58.11 136.83 32.24 10355.40 24.87 12.84 573.60 -39.61 40 29.85

India Steel Works 200803 12 204.27 1 55.08 2.18 40.99 2430.18 188.45 10.90 103.04 -157.98 - 1.15

ISMT 200903 12 732.50 5 51.05 36.05 20.13 13011.30 9.20 19.29 622.10 -37.81 20 8.04

Jai Corp 200903 12 178.45 1 72.99 143.41 8.84 3858.50 25.06 16.00 282.40 -77.96 100 2.44

Jindal Steel & Power 200903 12 154.00 1 58.75 241.63 39.93 76531.90 41.44 34.48 15364.80 24.21 400 127.35

JSW Steel 200903 12 1870.50 10 45.02 406.81 5.86 141584.20 23.98 21.84 4585.00 -73.47 10 68.76

Kanishk Steel 200903 12 284.36 10 70.13 23.64 18.33 3740.07 -9.29 5.19 53.22 -45.67 6 3.57

Lloyds Metals 200903 12 222.58 2 47.78 7.42 70.14 5234.72 58.78 10.20 283.86 26.13 - 4.28

Mah Seamless 200903 12 352.67 5 51.09 155.02 19.35 20915.70 39.66 19.37 2529.30 29.55 100 38.46

Metal Coatings 200903 12 49.04 10 75.85 22.46 9.64 871.73 -24.38 3.84 3.88 -62.66 10 2.11

Metalman Industries 200903 12 117.27 10 29.08 62.39 8.50 3721.20 1.19 5.13 0.70 -98.96 8 2.35

Pennar Industries 200903 12 632.39 5 36.11 10.91 31.70 6532.73 16.47 11.55 380.89 25.09 - 3.68

Rajratan Global Wire 200903 12 43.52 10 59.34 98.66 14.21 1449.84 36.70 12.88 57.27 361.85 10 20.17

Rishabh Digha Steel 200903 12 54.93 10 64.19 14.18 28.76 47.89 -10.80 61.95 15.86 -26.78 20 3.38

Sathavahana Ispat 200903 12 318.25 10 36.13 48.08 26.97 5415.21 51.42 11.29 131.17 -60.23 15 8.29

Shree Steel Wire 200903 12 47.18 10 27.48 9.04 20.54 36.92 6.24 22.89 2.73 -39.47 - 2.30

Shri Bajrang Alloys 200903 12 90.00 10 56.71 16.09 23.83 2000.25 3.57 3.31 19.27 -39.71 10 3.51

Sunflag Iron & Steel 200903 12 1621.98 10 45.20 18.13 15.75 11024.70 10.91 10.82 436.00 -0.07 5 4.60

Suraj Stainless 200903 12 170.09 10 73.03 27.15 33.14 2268.78 -22.05 9.83 60.85 -56.20 15 6.76

Surana Inds 200903 12 201.50 10 61.31 118.11 14.26 8711.34 8.90 11.20 324.96 0.23 15 22.23

Tata Steel 200903 12 7305.80 10 33.95 296.65 26.47 243157.70 23.47 38.83 52017.40 10.98 160 84.52

Technocraft Inds 200903 12 315.27 10 74.97 112.35 9.58 4323.62 31.55 11.44 88.29 -72.88 10 10.46

Usha Martin 200903 12 250.24 1 46.16 40.58 15.32 21366.60 29.03 19.77 1465.60 1.19 100 9.26

Vallabh Steels 200903 12 49.50 10 68.15 60.95 16.35 3030.36 -5.29 3.26 9.37 -55.51 1 7.48

Varun Industries 200903 12 221.14 10 62.02 170.80 8.92 12204.29 37.19 7.07 128.20 -40.02 15 10.79

Vikash Metal & Power 200903 12 351.20 10 58.95 23.87 15.95 5935.77 78.97 5.18 62.13 -50.66 5 3.81

Welspun-Gujarat 200903 12 888.77 5 43.94 83.67 32.94 58783.10 46.58 11.10 2335.70 -33.53 30 19.25

Wires & Fabriks 200903 12 30.56 10 63.59 70.82 8.10 557.81 3.99 21.35 25.46 1.76 15 24.69

Scorecard Legends : NOM - Number of Months for which P& L a/c is prepared by the companies, Equity Rs.Mn - Latest Paid Up Capital of the Company, FV-Latest Face values of equity Shares, Promoter Stk % - Its promoter holding in the equity capital of the company as per latest shareholding pattern, BV Rs. - Book Value Per Share is calculated as (Equity + reserves ) / No of Equity shares, RONW - Return on Net Worth is calculated as {(Net profit - preference capital)/ Shareholder’s Fund }*100.Share- holders funds includes Equity Paid Up + Reserves excluding revaluation reserves - Misc Expenditures Not written off, Sales Rs. Mn - Sales , Turnover & Income from operations,Sales Var% - Percentage Change in Sales over previous period Sales, OPM% - Operating Profit after interest expended as a % of Interest income & income from operation, NP Rs. Mn - Net Profit as reported after Tax, NP Var% - Percentage Change in Net profit over previous period Net profits, Div% - Total % of Dividend Declared during latest Financial year.

CPS Rs. - Cash Profit per Shares, EPS Rs. - Earning Per Shares is calculated as Net Profit / Number of Equity Shares, Sales Rs. Mn - Sales ,Turnover & Income from operations for Latest Quarter, Sales Var% - Percentage Change in Sales for Latest Quarter over previous Corresponding Quarter Sales, OPM% - Operating Profit after interest expended as a % of Interest income & income from operation for Latest Quarter,NP Rs. Mn - Net Profit as reported after Tax for Latest Quarter,NP Var% - Percent-age Change in Net profit for Latest Quarter over Previous quarter Net profits, Ended - Trailing Twelve months Ended On, TTMEPS - Earning Per Shares is calculated as TTM Net Profit / Number of Equity Shares,TTMNP Var% - Percentage Change in TTM Net profit over Corresponding previous TTM Net profits, H52 - High Price during last 52 Week,L52 - Low Price during last 52 Week,PE - Market Price / TTM Earning Per Shares,Market cap Rs.Mn - Market Capitalisation is calculated as Latest price multiplied by No of Equity Shares outstanding.

Scorecard : Steel

Latest Quarter TTM Market DataEPSRs.

SalesRs. Mn.

SalesVar (%)

OPM(%)

NPRs. Mn.

NPVar(%)

EndedEPSRs.

NPVar (%)

Price31/07/09

H52W L52W PEMkt. Cap(Rs. Mn.)

3.30 2338.55 -28.84 19.91 61.63 -73.77 200906 1.42 -565.70 101.20 126.80 20.85 71.30 9232.60

0.41 31.00 4.91 3.26 0.24 -14.29 200906 0.36 30.27 6.93 12.28 3.48 19.10 33.61

0.30 230.10 13.80 10.04 4.10 95.24 200906 0.47 -240.35 8.70 15.84 5.01 18.57 59.06

0.63 92.70 -44.16 1.51 0.60 -33.33 200906 0.49 -50.00 6.40 7.87 2.90 12.97 23.34

1.74 1057.45 -20.21 12.12 44.92 -66.24 200906 0.65 -670.44 15.60 29.10 9.01 23.82 1190.63

2.50 275.24 -57.48 3.11 3.14 -27.48 200903 2.50 -6.50 17.05 35.90 9.65 6.82 58.80

20.43 1919.00 -40.11 14.96 128.90 -66.12 200906 11.47 -248.14 108.70 232.00 41.55 9.48 3051.19

0.50 634.51 59.70 1.12 -33.29 - 200809 0.50 - 4.82 9.68 2.72 9.71 984.58

4.25 2569.40 -24.33 22.74 245.70 144.48 200906 5.24 -24.86 35.50 46.80 14.10 6.78 5200.75

1.58 1078.90 6.35 16.16 91.30 -56.52 200906 0.87 -637.82 228.95 440.30 59.20 - 40855.90

99.35 15761.30 -16.84 36.50 3000.60 -25.41 200906 92.74 3.14 2942.25 3237.00 517.30 31.73 453106.50

24.51 39168.00 6.68 25.23 3400.20 55.01 200906 30.96 -162.40 697.50 882.30 161.15 22.53 130467.38

1.87 464.47 -24.64 14.61 4.71 - 200903 1.87 -84.05 16.35 31.00 11.60 8.73 464.93

2.55 1105.79 -19.01 3.93 -12.35 - 200906 0.24 -1609.40 31.50 76.05 14.00 - 3505.68

35.86 4230.60 20.29 24.68 652.20 8.16 200906 36.56 13.26 253.65 328.00 111.80 6.94 17890.80

0.79 204.17 -37.57 3.84 1.72 -39.65 200906 0.15 -1608.22 6.67 19.70 4.77 44.81 32.71

0.06 891.20 0.68 2.39 -24.10 - 200903 0.06 -9471.43 11.94 19.90 5.52 - 140.02

3.01 1812.05 2.58 13.55 107.81 11.59 200906 3.20 9.52 27.00 35.50 15.50 8.43 3414.89

13.16 314.06 -18.04 12.28 12.66 -46.17 200906 10.66 24.02 68.60 161.00 33.00 6.43 298.53

2.88 4.30 -67.62 62.79 2.00 -75.61 200906 2.07 -154.87 13.30 17.50 7.27 6.42 73.05

3.93 1326.04 27.27 13.48 56.11 -64.30 200906 0.90 -1341.66 27.95 60.80 14.50 31.01 889.51

0.82 9.94 -54.47 17.91 0.21 -95.52 200903 0.82 -65.20 7.70 9.50 3.85 9.34 36.33

2.14 290.22 -51.45 4.16 3.11 -39.02 200903 2.14 -63.57 25.00 36.00 11.00 11.68 225.00

2.69 2850.80 -10.69 13.59 159.60 22.39 200906 2.87 -7.37 20.90 28.40 6.80 7.29 3389.93

3.58 302.39 -43.17 13.42 5.15 -75.98 200906 2.62 -177.46 134.65 222.00 46.75 51.37 2290.28

16.13 1931.66 -1.64 14.06 80.94 -8.27 200906 15.76 -3.36 146.35 153.85 34.15 9.28 2948.95

71.20 56155.50 -8.91 31.85 7898.30 -46.93 200906 61.64 -17.73 462.70 699.90 146.35 7.51 338039.37

2.80 791.09 -20.99 21.48 62.03 -40.63 200906 0.98 -1301.52 32.05 61.90 17.55 32.67 1010.43

5.86 4117.00 -16.05 18.36 134.00 -76.37 200906 4.13 -63.97 50.75 87.50 18.00 12.30 12699.78

1.89 579.18 -36.73 4.03 5.68 -38.13 200906 1.19 -432.37 15.75 28.85 9.51 13.28 77.96

5.80 3881.19 48.94 8.02 69.49 11.90 200906 6.13 - 65.30 72.80 19.70 10.65 1444.04

1.77 1568.77 -4.60 5.31 7.16 -82.10 200906 0.83 -368.75 13.60 24.00 4.63 16.31 477.63

12.52 18798.00 72.40 16.33 1382.10 94.28 200906 16.12 -17.50 226.80 373.50 48.50 14.07 40314.61

8.33 129.79 4.42 17.89 1.21 0.83 200906 8.33 0.94 60.25 68.00 37.10 7.23 184.14

D e c e m b e r August 2009

Magnum

20

Dividend Yield

Company NameYear End

Price(Rs.)

(31/07)

Yield(%)

EPS(Rs.)

FV PE

TTM 52-WkHigh(Rs.)

52-WkLow(Rs.)

Year End

NPRs. ml

EPS(Rs.)

PE

Deepak Nitrite Ltd. 200903 123.15 4.06 31.55 10 3.90 200906 198.02 22.09 5.57 161.05 73.00

Thirumalai Chemicals Ltd. 200803 82.90 12.06 29.79 10 2.78 200906 -505.40 -49.36 0.00 167.00 38.90

IFGL Refractories Ltd. 200803 21.80 9.17 4.87 10 4.48 200906 89.70 2.59 8.41 59.45 13.30

Pondy Oxides Ltd 200803 13.10 9.16 4.86 10 2.70 200906 -19.71 -1.95 0.00 23.95 9.11

Ecoboard Industries Ltd. 200803 12.11 8.26 4.35 10 2.78 200906 4.07 0.23 53.06 20.95 6.07

Bodal Chemicals Ltd. 200803 31.45 7.95 12.14 10 2.59 200906 -113.75 -5.72 0.00 63.00 13.30

Flex Foods Ltd. 200803 26.40 7.58 5.67 10 4.65 200906 64.70 5.20 5.08 31.75 14.05

Sterling Tools Ltd. 200803 40.00 7.50 11.12 10 3.60 200906 -9.55 -1.40 0.00 67.75 28.10

Precision Wires India Ltd. 200803 51.10 7.05 14.92 10 3.43 200906 5.43 0.47 108.82 100.00 17.60

Lokesh Machines Ltd. 200803 36.30 6.89 10.19 10 3.56 200906 -20.83 -1.77 0.00 72.45 18.00

Gontermann-Peipers (I) Ltd. 200803 22.20 6.76 10.86 10 2.04 200906 -1.04 -0.07 0.00 56.60 11.50

PAE Ltd. 200903 22.70 6.61 5.63 10 4.03 200906 52.60 5.53 4.11 31.25 10.25

Vimal Oil & Foods Ltd. 200803 27.40 6.57 12.29 10 2.23 200906 35.89 7.89 3.47 42.50 15.30

NCL Industries Ltd. 200803 38.40 6.51 9.10 10 4.22 200906 279.88 8.28 4.64 48.00 19.00

Shipping Corpn. Of India Ltd. 200803 134.70 6.31 28.83 10 4.67 200906 7809.90 18.44 7.30 163.53 67.00

GHCL Ltd. 200803 38.15 6.29 10.15 10 3.76 200906 1034.56 10.34 3.69 92.40 21.00

Damodar Threads Ltd. 200803 24.05 6.24 8.64 10 2.78 200906 28.87 3.70 6.49 41.60 13.40

Autoline Industries Ltd. 200803 80.70 6.20 22.31 10 3.62 200906 47.10 3.86 20.91 192.95 44.00

South India Paper Mills Ltd. 200803 50.10 5.99 15.82 10 3.17 200906 87.57 11.68 4.29 65.00 36.00

Graphite India Ltd. 200903 51.00 5.88 12.81 2 4.06 200906 2053.90 12.01 4.25 65.00 20.55

Tamil Nadu Newsprt & Papers Ltd. 200803 78.50 5.73 16.30 10 4.82 200906 705.30 10.19 7.70 99.00 51.30

Savera Industries Ltd. 200803 35.90 5.57 10.24 10 3.50 200906 21.52 3.61 9.95 70.00 17.90

Shivalik Bimetal Controls Ltd. 200803 14.40 5.56 3.57 2 4.03 200906 33.42 1.74 8.27 19.65 8.20

West Coast Paper Mills Ltd. 200803 54.15 5.54 14.27 2 3.79 200906 892.12 14.22 3.81 68.00 30.50

Savita Chemicals Ltd. 200803 209.75 5.48 42.43 10 4.94 200906 200.49 13.73 15.28 271.85 99.00

Chaman Lal Setia Exports Ltd. 200803 18.75 5.33 5.28 10 3.51 200906 30.39 3.20 5.86 30.50 11.00

Tanfac Industries Ltd. 200803 33.65 5.20 12.27 10 2.74 200906 -48.59 -4.87 0.00 61.00 24.65

Cosmo Films Ltd. 200803 97.40 5.13 22.89 10 4.26 200906 406.30 20.90 4.66 112.80 55.00

India Glycols Ltd. 200803 83.80 4.77 64.03 10 1.31 200906 -1034.00 -37.08 0.00 240.00 41.55

Kamdhenu Ispat Ltd. 200803 17.00 4.71 7.25 10 2.34 200906 -35.53 -1.87 0.00 30.30 9.13

Poona Dal & Oil Inds. Ltd. 200803 19.15 4.70 7.00 10 2.74 200906 16.55 2.90 6.60 32.35 12.89

Navin Fluorine Intl. Ltd. 200903 214.95 4.65 44.84 10 4.79 200906 454.22 44.97 4.78 285.90 72.55

Oriental Carbon & Chem. Ltd. 200903 32.70 4.59 7.41 10 4.26 200906 82.65 8.03 4.07 37.80 16.20

Ferro Alloys Corporation. Ltd. 200803 11.05 4.52 2.66 1 4.16 200906 54.44 0.29 37.60 29.50 4.86

LG Balakrishnan & Bros. Ltd. 200903 13.49 4.45 4.99 1 2.70 200906 373.28 4.76 2.84 17.25 7.15

TVS Electronics Ltd. 200803 22.50 4.44 7.23 10 3.11 200906 -88.70 -5.02 0.00 39.00 11.76

Apar Industries Ltd. 200803 126.15 4.36 26.43 10 4.77 200906 105.97 3.28 38.49 180.00 62.00

Indus Fila Ltd. 200806 23.45 4.26 21.22 10 1.11 200906 -162.05 -8.36 0.00 174.80 13.85

Murudeshwar Ceramics Ltd. 200803 29.45 4.07 15.19 10 1.94 200906 -81.88 -4.68 0.00 45.50 14.55

Excel Crop Care Ltd. 200903 123.00 4.07 25.26 5 4.87 200906 242.69 22.05 5.58 188.00 60.50

D e c e m b e r August 2009

Magnum

21

High PE

Company Name Year End Price (31/07) Rs. EPS FV PEMMTC Ltd. 200803 29775.30 40.10 10 742.53Godrej Industries Ltd. 200903 152.15 0.58 1 266.93Fertilisers & Chemicals Travancore Ltd. 200803 36.30 0.25 10 259.29Suryalata Spinning Mills Ltd. 200803 35.15 0.14 10 244.78Four Soft Ltd. 200803 21.90 0.09 5 238.54Indo Rama Synthetics (India) Ltd. 200803 27.95 0.20 10 140.50Rane (Madras) Ltd. 200903 47.00 0.36 10 130.56Nirlon Ltd. 200803 36.30 0.28 10 129.64Kei Industries Ltd. 200903 25.10 0.20 2 125.50Shristi Infrastructure Development. Corpn. Ltd. 200803 348.70 2.86 10 121.72Advanta India Ltd. 200812 573.10 5.85 10 112.59Rama Newsprint & Papers Ltd. 200803 18.10 0.18 10 100.56Excel Industries Ltd. 200903 36.95 0.40 5 92.38Thiru Arooran Sugars Ltd. 200809 105.00 1.32 10 79.55Hindustan Oil Exploration Company Ltd. 200803 143.65 1.85 10 77.78Max India Ltd. 200803 208.10 2.79 2 74.54Arvind Chemicals Ltd. 200803 38.35 0.58 10 73.75Reliance Industrial Infrastructure Ltd. 200803 1022.40 14.43 10 70.84Nagarjuna Fertilizers & Chemicals Ltd. 200803 35.70 0.53 10 67.93Falcon Tyres Ltd. 200803 666.00 9.92 10 67.13Southern Online Bio Technologies Ltd. 200803 14.89 0.22 10 66.92Aditya Birla Nuvo Ltd. 200903 875.15 14.46 10 60.52NRB Bearings Ltd. 200903 49.85 0.88 2 56.65Arshiya International Ltd. 200803 121.25 2.17 2 55.91Andrew Yule & Company Ltd. 200803 49.30 0.19 2 54.18Everest Kanto Cylinder Ltd. 200903 181.70 3.68 2 49.38Sterlite Industries (India) Ltd. 200803 644.95 13.43 2 48.02Sundram Fasteners Ltd. 200903 37.35 0.83 1 45.00Kirloskar Ferrous Inds. Ltd. 200903 25.80 0.58 5 44.48Mysore Petro Chemicals Ltd. 200903 28.65 0.69 10 41.52VBC Ferro Alloys Ltd. 200803 308.05 7.50 10 41.07Television Eighteen India Ltd. 200803 101.40 2.55 5 39.77Hind Industries Ltd. 200803 16.65 0.43 10 38.72Essar Shipping Ports & Logistics Ltd. 200903 65.80 1.75 10 37.60Trent Ltd. 200903 505.75 13.70 10 36.92Jindal Steel & Power Ltd. 200803 2942.25 80.32 1 36.63Fomento Resorts & Hotels Ltd. 200803 239.25 6.77 10 35.34Kalyani Forge Ltd. 200903 88.50 2.30 10 34.44Lotus Chocolate Company Ltd. 200803 19.75 0.58 10 33.84Asian Star Company Ltd. 200803 1262.35 37.80 10 33.39Schrader Duncan Ltd. 200903 96.75 2.95 10 32.80

EPS Earning Per Shares is calculated as Net Profit / Number of Equity Shares (Rs)FV Latest Face values of equity Shares (Rs)PE Market Price / Trailing Twelve Months Earning Per Shares

D e c e m b e r August 2009

Magnum

22

Low PE

EPS Earning Per Shares is calculated as Net Profit / Number of Equity Shares (Rs)FV Latest Face values of equity Shares (Rs)PE Market Price / Trailing Twelve Months Earning Per Shares

Company Name Year End Price (31/07) Rs. EPS FV PEIndus Fila Ltd. 200806 23.45 21.22 10 1.11Amtek India Ltd. 200806 39.55 30.93 2 1.28India Glycols Ltd. 200803 83.80 64.03 10 1.31Gremach Infrastructure Equipments & Projects Ltd. 200803 37.40 24.43 10 1.53Ansal Housing & Construction Ltd. 200803 52.25 31.51 10 1.66Pioneer Investcorp Ltd. 200803 46.80 28.12 10 1.66National Steel & Agro Inds. Ltd. 200803 14.40 7.73 10 1.86Murudeshwar Ceramics Ltd. 200803 29.45 15.19 10 1.94Shakti Met-Dor Ltd. 200803 90.90 35.68 10 2.01Gontermann-Peipers (India) Ltd. 200803 22.20 10.86 10 2.04Cubex Tubings Ltd. 200803 15.15 7.24 10 2.08Vimal Oil & Foods Ltd. 200803 27.40 12.29 10 2.23GS Auto International Ltd. 200803 23.45 10.49 10 2.24Jindal Photo Ltd. 200803 107.15 45.75 10 2.34Kamdhenu Ispat Ltd. 200803 17.00 7.25 10 2.34Asian Granito India Ltd. 200803 34.55 12.56 10 2.41Associated Alcohols & Breweries Ltd. 200803 20.30 8.23 10 2.47Facor Alloys Ltd. 200903 4.86 1.95 1 2.49Bodal Chemicals Ltd. 200803 31.45 12.14 10 2.59Taparia Tools Ltd. 200803 34.45 12.80 10 2.69Pondy Oxides Ltd 200803 13.10 4.86 10 2.70LG Balakrishnan & Bros. Ltd. 200903 13.49 4.99 1 2.70Poona Dal & Oil Inds. Ltd. 200803 19.15 7.00 10 2.74Tanfac Industries Ltd. 200803 33.65 12.27 10 2.74Thirumalai Chemicals Ltd. 200803 82.90 29.79 10 2.78Damodar Threads Ltd. 200803 24.05 8.64 10 2.78Ecoboard Industries Ltd. 200803 12.11 4.35 10 2.78PG Foils Ltd. 200803 27.75 9.84 10 2.82Great Eastern Shipping Company Ltd. 200903 257.40 90.93 10 2.83Paramount Communications Ltd. 200803 11.59 3.88 2 2.99Surana Corporation Ltd. 200903 30.80 10.29 10 2.99Panama Petrochem Ltd. 200803 101.25 31.07 10 3.01Austin Engineering Company Ltd. 200803 56.40 18.43 10 3.06TVS Electronics Ltd. 200803 22.50 7.23 10 3.11Technocraft Industries (India) Ltd. 200803 32.15 10.32 10 3.11South India Paper Mills Ltd. 200803 50.10 15.82 10 3.17Punjab Chemicals & Crop Protection Ltd. 200803 146.65 45.94 10 3.21Ahmednagar Forgings Ltd. 200806 56.50 18.66 10 3.28Emmsons International Ltd. 200803 64.80 19.58 10 3.31Gujarat Alkalies & Chemicals Ltd. 200803 102.05 30.51 10 3.34Hind Rectifiers Ltd. 200803 54.70 16.31 2 3.35

D e c e m b e r August 2009

Magnum

23

Sales

Company Name200906 Qtr 200806 Qtr

Change In Sales

% Change in Sales 200906 200806

Change In Net Profit

% Change in Net Profit

Whirlpool 6233.40 6241.90 -8.50 -0.14 462.30 445.70 16.60 3.72Digjam 292.70 293.10 -0.40 -0.14 -42.40 -45.20 2.80 -6.19Mangalam Timber 173.84 174.14 -0.30 -0.17 2.08 9.83 -7.75 -78.84Jay Bharat Maruti 1758.37 1761.98 -3.61 -0.20 33.28 36.94 -3.66 -9.91Taparia Tools 324.10 325.00 -0.90 -0.28 12.65 11.11 1.54 13.86R Systems Intl. 494.96 496.35 -1.39 -0.28 -185.32 37.72 -223.04 -591.30Micro Inks 3215.30 3225.60 -10.30 -0.32 363.50 177.80 185.70 104.44Exide Inds 9034.60 9065.30 -30.70 -0.34 1224.00 822.00 402.00 48.91Kabra Extrus.technik 357.64 359.28 -1.64 -0.46 39.20 39.48 -0.28 -0.71Rajshree Sugars 863.80 868.10 -4.30 -0.50 64.40 86.70 -22.30 -25.72Pasupati Acrylon 835.00 839.20 -4.20 -0.50 180.40 -28.90 209.30 -724.22Advanta India 709.33 712.96 -3.63 -0.51 114.24 112.70 1.54 1.37Tata Power 20156.20 20261.30 -105.10 -0.52 3969.70 1905.50 2064.20 108.33Jost's Engineering 111.17 111.81 -0.64 -0.57 4.14 1.66 2.48 149.40Mah Elektrosmelt 727.93 732.60 -4.67 -0.64 101.27 105.75 -4.48 -4.24Visa Steel 2540.97 2557.29 -16.32 -0.64 100.62 485.11 -384.49 -79.26Geometric 516.66 520.11 -3.45 -0.66 -11.98 158.90 -170.88 -107.54Suven Life Sciences 310.22 312.35 -2.13 -0.68 21.84 15.99 5.85 36.59Cords Cable Inds 356.86 359.35 -2.49 -0.69 6.77 24.37 -17.60 -72.22Sunshield Chem 151.57 152.76 -1.19 -0.78 7.65 -0.30 7.95 -2650.00Elantas Beck 489.75 493.78 -4.03 -0.82 83.24 58.48 24.76 42.34JK Paper 2608.00 2631.30 -23.30 -0.89 201.60 102.90 98.70 95.92Panyam Cement 407.63 411.30 -3.67 -0.89 83.64 111.28 -27.64 -24.84Rane Engine Valve 544.56 549.49 -4.93 -0.90 1.21 12.10 -10.89 -90.00DCM 516.80 521.50 -4.70 -0.90 10.20 -0.70 10.90 -1557.14Kernex Micro 50.29 50.76 -0.47 -0.93 5.23 10.68 -5.45 -51.03Jubilant Organosys 6098.50 6162.50 -64.00 -1.04 1450.30 145.10 1305.20 899.52India Motor Parts 813.72 822.38 -8.66 -1.05 49.62 41.37 8.25 19.94Automotive Stampg 838.61 847.62 -9.01 -1.06 -2.83 -16.09 13.26 -82.41Bhushan Steel 13047.00 13197.90 -150.90 -1.14 1718.70 1326.80 391.90 29.54Transport Corp. 3112.80 3149.30 -36.50 -1.16 79.00 58.60 20.40 34.81DIC India 1162.51 1176.21 -13.70 -1.16 44.60 45.95 -1.35 -2.94Atlas Cycle 1353.60 1370.70 -17.10 -1.25 11.00 4.30 6.70 155.81India Cements 9602.50 9736.90 -134.40 -1.38 1442.80 1421.40 21.40 1.51Jai Balaji Inds 4576.31 4641.35 -65.04 -1.40 -28.85 462.97 -491.82 -106.23Berger Paints 3726.30 3781.60 -55.30 -1.46 283.80 231.70 52.10 22.49Cravatex 110.24 111.94 -1.70 -1.52 9.48 4.74 4.74 100.00Kajaria Ceramics 1560.60 1584.70 -24.10 -1.52 60.40 23.20 37.20 160.35Balmer Lawrie 4157.00 4223.80 -66.80 -1.58 289.20 241.60 47.60 19.70LT Foods 2055.50 2089.27 -33.77 -1.62 120.20 75.40 44.80 59.42Surana Inds 1931.66 1963.83 -32.17 -1.64 80.94 88.24 -7.30 -8.27Jenson & Nicholson 89.18 90.68 -1.50 -1.65 -7.75 -18.60 10.85 -58.33Asian Granito 719.68 732.22 -12.54 -1.71 44.08 90.72 -46.64 -51.41Omax Autos 2002.80 2038.30 -35.50 -1.74 28.50 42.40 -13.90 -32.78Mahindra Lifespace 472.60 482.10 -9.50 -1.97 104.20 97.50 6.70 6.87GSS America Infotech 106.76 108.92 -2.16 -1.98 42.01 81.56 -39.55 -48.49Super Sales India 270.66 276.39 -5.73 -2.07 27.27 12.12 15.15 125.00Sree Sakthi Paper Mill 330.21 337.38 -7.17 -2.13 10.27 11.86 -1.59 -13.41Roto Pumps 104.07 106.33 -2.26 -2.13 9.23 6.56 2.67 40.70HEG 2321.80 2372.90 -51.10 -2.15 418.60 295.10 123.50 41.85

Rs. in million

Net Sales Net Profit

D e c e m b e r August 2009

Magnum

24

Price Trends

Date Price Rs.31-Jul-09 14732.501-Jul-09 14478.701-Jun-09 14963.752-May-09 14350.001-Apr-09 15150.002-Mar-09 15655.002-Feb-09 14063.351-Jan-09 13600.001-Dec-08 13043.201-Nov-08 11800.001-Oct-08 13208.201-Sep-08 11954.251-Aug-08 12514.15

Silver

Crude

Gold

Currency

Date Price Rs.31-Jul-09 22314.151-Jul-09 21879.001-Jun-09 23300.002-May-09 20988.001-Apr-09 21950.002-Mar-09 21900.002-Feb-09 19526.251-Jan-09 18250.001-Dec-08 17234.751-Nov-08 16962.501-Oct-08 19800.001-Sep-08 20726.851-Aug-08 24607.45

Date Price Rs31-Jul-09 47.831-Jul-09 47.771-Jun-09 46.781-May-09 49.681-Apr-09 50.562-Mar-09 52.352-Feb-09 49.022-Jan-09 48.061-Dec-08 50.583-Nov-08 48.581-Oct-08 46.661-Sep-08 44.181-Aug-08 42.28 Date Price $

31-Jul-09 68.361-Jul-09 69.281-Jun-09 67.721-May-09 53.291-Apr-09 47.572-Mar-09 40.705-Feb-09 40.212-Jan-09 45.991-Dec-08 50.423-Nov-08 65.361-Oct-08 100.001-Sep-08 110.891-Aug-08 125.91

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D e c e m b e r August 2009

Magnum

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Sectoral Mutual Fund Analysis

ICICI Pru Infrastructure(G) ICICI Prudential Infrastructure (Growth) scheme is an ICI-CI Prudential Asset Management Company Limited man-aged open-ended equity - infrastructure scheme.The fund was launched on September 12, 2005 and its cur-rent net asset as on June 30, 2009 is Rs 3842.13 crore. The benchmark index of the fund is S&P CNX Nifty and the custodian of the fund is HDFC Bank Limited.The current net asset value (NAV) of the fund as on July 31, 2009 is Rs 25.66; while the 52 week high NAV was Rs 26.21on August 11, 2009 and the 52 week low NAV for the scheme was Rs 14.11 on October 27, 2008. The minimum investment to the fund is Rs 5,000 and addi-tional investments can be made in the multiples of Rs 500.The investment objective of the fund is to invest in equity/equity related securities of the companies belonging to in-frastructure development and the balance in debt securi-ties and money market instruments including call money.The fund charges an entry load of 2.25% for invest-ment, and an exit load of 1% of the applicable NAV will be charged if the redemption/switch-out is made within 12 months from the date of allotment of units.The portfolio of the fund comprises 68.104% in domestic equities, 22.816% in derivatives and remaining 9.081% is of cash and cash equivalents.The top five holdings of the fund are:

The fund has the contribution of 10.03% from the ferrous metal while the biggest contributor is industrial capital goods of 11.55%.As far as market capitalization-wise companies are con-cerned, the scheme’s portfolio consists of 53.29% from Large-cap, 10.40% from Mid-cap and 4.48% from Small-cap companies.As on June 30, 2009 the major company that was includ-ed into the scheme was SBI with a holding of 1.02% and ONGC with a holding of 1.49% while the major company that has recently been excluded from the portfolio was Jin-dal Steel and Power with a holding of 2.03%.

The fund has given a return of 26.02% since inception and a return of 4.61% in last one year, while the category average in the same period has been 9.90% and 5.25% respectively.

OutlookICICI Prudential Infrastructure (Growth) scheme is one of the top performing schemes in its category being managed by Sankaran Naren. An open-ended equity fund focused on capturing the opportunity presented by the long term growth potential of the Indian Infrastructure sector. It invests across infrastructure sectors such as Cement, Power, Telecom, Oil and Gas, Construction, Banking etc. India needs to invest large amounts in areas like Roads, Ports, Power, and Telecom etc. to sustain high economic growth. Apart from government spending, it will also require private participation to make significant progress on developing infrastructure. New initiatives such as Public-Private participation, increase in FDI limits and adequate funding support from the government have provided a tremendous boost to the system and therefore companies engaged in this sector have delivered robust performance in the last couple of years. The fund has been a top performing fund in infrastructure category and has given good return over the years with a good mix of companies and viewing the rising prospects of the infrastructure the fund is likely to perform well in future as well.

Market cap-wise Allocation StyleAverage Mkt Cap (Rs Cr) 43892.16Market Capitalization % of Portfolio Large 53.29Mid 10.40Small 4.42Note: Large-Cap = 5000 Crs. and above, Mid-Cap = 2000 Crs. to 5000 Crs. and Small-Cap = less than 2000 Crs.

Duration 1 Week % 1 Mth % 3 Mth % 6 Mth % 1 Year % 3 Year % 5 Year % Since Inc. %Scheme Return % 1.50 6.03 27.98 52.74 4.61 24.16 NA 26.02Category Avg % 1.59 5.33 42.02 64.71 5.25 16.05 27.08 9.90

Company RIL NTPC Bharti Airtel RPL HDFC

Bank% Holding 9.48 8.42 8.35 5.31 4.47

ICICI Pru Infrastructure(G)

Last one year NAV Graph

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D e c e m b e r August 2009

Magnum

26

MF Scorecard

Scheme NameNAV(Rs.)

InceptionDate

Absolute % CAGR % AUM

(Rs. cr)1 M 3 M 6 M 1 Y 3 Y 5 Y Since

Inception

Equity - DiversifiedBirla Sun Life India Opp(G) 40.13 21-Jan-95 43 13.01 48.30 80.52 0.40 -0.22 17.28 7.22Birla SL Special Situations(G) 8.37 15-Jan-08 586 8.06 39.18 62.30 6.63 - - -11.62DSPBR Opportunities(G) 64.55 10-Apr-00 888 10.38 41.01 64.64 14.36 16.39 47.72 59.21Fidelity Equity(G) 25.36 19-Apr-05 2528 8.16 38.83 62.22 15.36 20.95 - 36.47ICICI Pru Dynamic(G) 75.29 18-Oct-02 1496 8.34 32.54 54.26 9.34 19.19 63.37 96.56Kotak Opportunities(G) 36.48 25-Aug-04 903 8.60 44.15 65.05 7.36 20.82 - 54.12Magnum Comma(G) 19.27 25-Jul-05 539 9.18 35.61 61.66 0.89 18.46 - 23.30Magnum Multicap(G) 15.03 16-Sep-05 627 6.67 36.39 61.96 4.67 7.95 - 13.66Reliance Equity Oppor-Ret(G) 22.14 7-Mar-05 1507 9.84 46.26 71.47 12.46 12.73 - 27.94Reliance Natural Resources(G) 9.24 30-Jan-08 4419 7.21 33.92 56.20 1.05 - - -6.29

Equity - ELSSBirla Sun Life Tax Relief '96(D) 77.16 29-Mar-96 889 9.29 49.59 79.03 11.68 14.52 21.85 28.8DSPBR Tax Saver(G) 12.64 26-Dec-06 573 8.66 41.84 64.51 7.43 - - 8.65Fidelity Tax Advantage(G) 15.41 31-Jan-06 986 9.08 39.09 62.46 15.44 - - 15.40Franklin India Taxshield(G) 152.40 10-Apr-99 610 6.46 35.77 60.64 14.99 15.90 40.43 138.05HDFC Long Term Adv(G) 99.25 27-Dec-00 758 9.95 45.31 69.05 11.55 11.83 40.04 104.01Principal Personal Tax saver(G) 77.16 1-Jan-96 452 10.31 40.57 68.47 -0.26 18.84 35.53 163.82Reliance Tax Saver (ELSS)(G) 15.31 23-Aug-05 1880 8.25 39.24 60.52 19.19 13.64 - 13.75Sundaram Taxsaver(G) 35.16 31-Jan-05 963 11.36 39.73 58.07 18.01 21.22 33.90 17.23

Equity - Large-capBirla Sun Life Equity(G) 210.22 27-Aug-98 1112 7.99 44.53 69.33 13.11 19.64 55.54 183.11Birla Sun Life Frontline Equity(G) 67.76 30-Aug-02 789 8.52 41.99 66.04 21.48 25.62 53.91 91.47DSPBR Equity(D) 45.66 15-Apr-97 1232 8.35 40.43 58.27 14.35 21.05 33.35 24.93DSPBR Top 100 Equity(G) 79.06 21-Feb-03 1727 8.74 35.88 54.97 19.09 26.59 57.22 114.09JM Large Cap(G) 16.09 9-Jun-04 6 4.57 24.64 48.21 -13.27 4.15 - 12.52Kotak 30(G) 82.48 21-Dec-98 896 8.29 33.68 51.22 5.46 18.17 49.33 90.57Magnum Equity(D) 29.63 30-Nov-90 342 7.82 40.16 70.98 11.52 17.12 27.71 13Reliance Equity-Ret(G) 13.91 7-Mar-06 2232 7.10 35.69 54.30 12.83 15.04 - 11.48Reliance Vision-Ret(G) 213.27 7-Oct-95 3453 8.69 41.42 63.43 15.72 17.85 49.98 147.06Sundaram BNPP Growth(G) 75.45 15-Feb-97 143 11.32 44.97 64.60 0.15 13.50 39.28 80.44

Equity - Mid-capBirla Sun Life Midcap(G) 81.75 1-Oct-02 592 11.35 60.11 86.81 19.10 22.12 53.82 105.05ICICI Pru Emerging S.T.A.R.(G) 23.41 25-Sep-04 357 8.73 51.23 73.79 -9.19 4.91 - 28.19JM Mid Cap(G) 21.76 9-Jun-04 7 9.13 53.97 106.79 40.66 11.15 - 23.09Kotak Midcap(G) 17.43 28-Jan-05 107 9.87 45.21 62.60 -1.06 4.72 - 16.46Reliance Growth-Ret(G) 351.49 7-Oct-95 5171 7.92 44.71 73.34 10.72 27.15 72.19 247.06Reliance Reg Sav-Equity(G) 23.11 10-Jun-05 1112 8.14 49.74 80.48 18.44 33.90 - 31.55Sundaram BNPP S.M.I.L.E(G) 24.93 21-Jan-05 194 11.40 56.57 86.62 17.30 22.95 - 32.89Sundaram BNPP Slct Midcap(G) 105.90 19-Jul-02 1437 9.16 60.00 89.91 15.89 14.87 66.11 138.42

Returns as on 31st July, 2009

D e c e m b e r August 2009

Magnum

27

MF Scorecard

Scheme NameNAV(Rs.)

InceptionDate

Absolute % CAGR % AUM

(Rs. cr)1 M 3 M 6 M 1 Y 3 Y 5 Y Since

Inception

Equity - Small-capDSPBR Micro-Cap(G) 8.85 25-May-07 218 9.10 57.67 77.65 -2.51 - - -5.60HSBC Small Cap(G) 8.12 3-Mar-08 53 9.29 43.42 62.67 -12.15 - - -14.86ICICI Pru CCP-Gift 40.51 6-Aug-01 112 9.78 41.10 62.04 -1.63 9.11 22.37 38.52Sundaram BNPP Slct Small Cap(G) 8.98 24-Jan-07 242 10.95 60.65 82.83 4.34 - - -4.05

Equity - Banks & Fin SrvsJM Fin Services Sector(G) 8.46 20-Nov-06 33 -3.86 33.90 16.79 -23.87 - - -5.83Reliance Banking(G) 62.93 21-May-03 942 4.23 43.96 66.85 32.40 42.11 54.13 85.02

Equity - ContriarianJM Contra(G) 4.91 14-Aug-07 295 4.02 36.30 45.06 -44.20 - - -26.81Kotak Contra(G) 16.81 1-Jul-05 84 9.26 37.24 57.65 13.26 15.47 - 16.96Tata Contra(G) 13.03 25-Oct-05 105 10.90 46.09 74.86 12.86 10.82 - 8.15UTI-Contra(G) 11.89 22-Mar-06 237 8.68 37.46 56.86 24.89 - - 4.56

Equity - Dividend YieldBirla Sun Life Divi Yield Plus(G) 56.97 7-Feb-03 255 10.47 44.19 58.96 31.75 20.80 35.03 72.46Principal Dividend Yield(G) 17.22 27-Sep-04 96 10.95 41.85 57.55 4.74 7.43 - 15.08Tata Dividend Yield(G) 22.52 27-Oct-04 107 12.03 42.85 67.44 13.75 18.77 - 26.69UTl-Dividend Yield(G) 22.70 3-May-05 1270 10.68 35.28 53.48 21.33 25.99 - 30.26

Equity - Energy / PowerReliance Diver Power Sector(G) 67.48 15-Apr-04 5292 6.32 44.28 71.75 18.37 57.55 - 109.43Sundaram BNPP Energy Oppor(G) 7.51 11-Dec-07 1740 5.18 44.61 65.78 3.50 - - -16.75

Equity - FMCGFranklin FMCG(G) 45.23 31-Mar-99 26 16.42 33.88 46.25 26.07 12.68 43.17 35.29ICICI Pru FMCG(G) 46.05 5-Mar-99 50 22.70 38.87 45.77 14.84 13.04 58.45 34.86Magnum FMCG 17.16 3-Jul-99 7 11.14 25.53 43.12 20.51 8.79 26.15 13.38

Equity - GlobalFortis China-India(G) 7.89 1-Oct-07 100 10.58 31.54 54.21 5.82 - - -11.76Birla Sun Life Intl. Equity-A(G) 8.19 16-Oct-07 144 6.84 12.89 18.68 -13.97 - - -10.34Birla Sun Life Intl. Equity-B(G) 7.95 16-Oct-07 550 7.74 33.47 51.80 3.71 - - -11.69DSPBR Natural Res-Reg(G) 10.69 31-Mar-08 233 7.26 35.24 61.15 10.62 - - 5.46Fidelity International Oppor(G) 9.85 30-Apr-07 825 7.43 36.47 61.60 4.01 - - -0.70Franklin Asian Equity(G) 9.87 18-Dec-07 417 11.54 28.77 52.81 14.06 - - 2.56Mirae Asset GIbl Comdty Stock(G) 10.19 23-Jul-08 57 11.19 35.58 67.72 - - - 1.79Templeton India Equity Income(G) 15.20 20-Apr-06 1063 12.94 45.02 78.51 5.76 - - 16.21

Equity - Pharma & HCFranklin Pharma(G) 33.83 31-Mar-99 47 10.81 37.05 58.14 18.51 13.33 21.92 25.50Reliance Pharma(G) 28.61 26-May-04 114 12.45 42.72 60.40 23.07 27.10 - 36.13

Returns as on 31st July, 2009

D e c e m b e r August 2009

Magnum

28

MF Scorecard

Scheme NameNAV(Rs.)

InceptionDate

Absolute % CAGR % AUM

(Rs. cr)1 M 3 M 6 M 1 Y 3 Y 5 Y Since

Inception

Equity - InfrastructureBirla SL Infrastructure-A(G) 13.70 18-Feb-06 479 7.47 50.85 79.80 15.12 - - 12.56DSPBR India T.I.G.E.R-Reg(G) 39.66 20-May-04 3320 4.98 37.81 64.97 9.67 22.13 - 58.12ICICI Pru Infrastructure(G) 25.66 10-Aug-05 3842 6.03 27.98 52.74 4.61 30.47 - 37.47Sund BNPP CAPEX Oppor(G) 20.56 5-Sep-05 541 4.63 63.63 88.09 7.94 20.85 - 27.51

Equity - MediaReliance Media & Ent(G) 20.24 27-Sep-04 127 3.90 30.90 46.04 -8.97 10.32 - 21.22

Equity - MNCBirla Sun Life MNC(G) 133.18 22-Apr-94 145 12.64 39.03 64.32 23.44 12.03 32.77 28.00

Equity - QuantReligare AGILE(G) 5.35 23-Nov-07 118 7.21 13.59 26.48 -12.44 - - -27.14Reliance Quant Plus-Ret(G) 10.64 18-Apr-08 43 7.67 36.79 62.21 19.08 - - 3.59

Equity - Service IndsICICI Pru Services Inds(G) 13.66 18-Nov-05 352 9.98 40.10 63.79 -2.91 11.78 - 9.98Principal Services Inds(G) 12.25 31-Jan-06 130 10.76 38.57 63.99 14.38 - - 6.61Tata Service Inds(G) 19.86 10-Mar-05 127 10.88 61.39 91.56 12.04 13.99 - 22.81

Equity - TECkBirla Sun Life New Millennium(G) 15.59 15-Jan-00 58 12.89 40.20 65.67 -5.86 3.29 25.36 0.21DSPBR Technology.com(G) 24.25 10-Apr-00 73 17.53 50.84 76.96 -0.25 17.54 39.89 15.46Franklin Infotech(G) 41.74 22-Aug-98 96 20.30 47.09 76.94 12.20 0.16 19.71 69.52ICICI Pru Technology(G) 10.70 28-Jan-00 70 16.56 47.18 73.98 -10.31 3.24 20.74 0.74JM Telecom Sector(G) 9.28 20-Nov-06 5 7.44 41.91 71.55 -11.77 - - -2.71Magnum IT 14.86 3-Jul-99 40 17.66 48.60 87.63 -13.10 -2.13 20.25 9.54

Equity - Sensex Linked IndexFranklin India Index-Sensex(G) 44.13 27-Aug-01 41 8.41 37.39 65.68 8.97 15.77 39.53 43.89HDFC Index-Sensex Plus(G) 178.02 10-Jul-02 42 7.41 36.85 61.61 16.48 18.80 46.46 63.74HDFC Index-Sensex(G) 131.36 10-Jul-02 60 8.24 35.81 62.44 5.31 9.36 34.25 43.29UTI-SUNDER 485.53 11-Jul-03 10 8.19 33.17 60.53 8.37 17.31 39.62 54.35

FOF - DebtBirla Sun Life AA-Cons(G) 18.21 23-Jan-04 5 3.11 10.73 15.33 15.23 13.60 - 14.86

Floating Rate - Long TermBirla Sun Life FRF-LT(G) 15.00 4-Jun-03 748 0.62 1.87 3.82 8.44 9.19 8.33 8.12Sundaram BNPP Flexible-FIP-Reg(G) 13.35 24-Dec-04 4 0.06 1.47 3.24 7.25 7.71 - 7.28

Returns as on 31st July, 2009

D e c e m b e r August 2009

Magnum

29

MF Scorecard

Scheme NameNAV(Rs.)

InceptionDate

Absolute % CAGR % AUM

(Rs. cr)1 M 3 M 6 M 1 Y 3 Y 5 Y Since

Inception

Equity - Nifty Linked IndexBirla Sun Life Index(G) 46.37 17-Sep-02 48 8.20 33.18 61.06 7.00 14.35 35.03 52.93Magnum Index(G) 39.07 16-Jan-02 22 6.72 31.53 59.09 5.56 11.36 31.96 40.17Nifty BeES 464.41 18-Dec-01 182 8.29 33.76 61.47 8.07 17.17 39.75 49.60Reliance Banking ETF 770.84 30-May-08 13 2.90 48.79 71.51 - - - 36.76

Arbitrage Funds ICICI Pru Eq & Deriv-lnc-Ret(G) 12.32 7-Dec-06 390 -0.24 1.48 2.67 6.67 - - 8.79SBI Arbitrage Opportunities(G) 12.33 13-Oct-06 479 0.13 1.08 1.99 6.46 - - 8.40UTI-SPREAD(G) 13.07 22-Jun-06 635 0.41 2.01 4.20 9.70 - - 9.93

Balanced - Equity OrientedKotak Balance 22.08 25-Nov-99 69 6.54 26.86 41.92 9.73 12.90 36.78 38.74Sundaram BNPP Balanced(G) 39.03 25-May-00 40 6.97 35.89 51.44 12.47 14.61 27.29 31.24

Balanced - Debt-OrientedHDFC Children's Gift - Savings 18.42 2-Feb-01 55 2.66 8.35 14.61 13.16 9.77 10.94 16.56ICICI Pru CCP-Study 24.40 6-Aug-01 28 4.74 12.74 17.54 14.44 12.59 14.65 18.19

FOF - EquityBirla Sun Life AA-Aggr(G) 26.72 23-Jan-04 8 8.27 34.11 51.59 25.84 20.21 - 30.28FT India Dyn PE Ratio FOFs(G) 33.70 31-Oct-03 31 3.17 24.58 47.11 21.12 20.00 39.06 40.60ICICI Pru Advisor-Very Aggr(G) 27.71 28-Nov-03 8 6.81 30.47 51.66 8.17 13.00 38.29 28.43Kotak Equity FOF(G) 29.54 19-Jul-04 48 7.35 38.79 63.51 11.77 15.95 - 39.13

FOF - OverseasICICI Pru Indo Asia Eq(G) 8.40 21-Sep-07 487 10.82 40.23 64.38 3.83 - - -8.45Sundaram BNPP Global Adv(G) 9.23 31-Jul-07 158 8.19 25.16 45.48 -8.83 - - -3.98

Commodities - GoldGold BeES 1449.38 23-Feb-07 310 0.75 0.73 0.26 15.97 - - 22.19Kotak GOLD ETF 1452.78 4-Jul-07 52 0.75 0.73 0.26 15.95 - - 32.46DSPBR World Gold-Reg(G) 12.90 23-Aug-07 1658 0.56 10.74 20.11 0.54 - - 6.51Reliance Gold ETF 1413.53 1-Nov-07 178 0.75 0.84 0.28 14.35 - - 22.32UTI-Gold ETF 1452.51 16-Mar-07 181 0.77 0.88 0.40 15.98 - - 22.78

Floating Rate - Short TermBirla Sun Life FRF-ST(G) 14.69 4-Jun-03 76 0.41 1.28 2.91 7.38 8.31 7.82 7.61ICICI Pru FRF-Option A(G) 13.84 28-Mar-04 1567 0.36 1.06 2.47 7.02 8.21 - 7.66LICMF FRF-STP(G) 14.61 29-Mar-04 1199 0.51 1.54 3.27 8.56 8.73 7.58 7.36Magnum FRF-STP(G) 13.75 14-Jul-04 15 0.48 1.20 2.86 9.34 7.96 - 7.44

Gilt - Long TermBirla Sun Life Gilt Plus-PF(G) 23.60 11-Oct-99 65 -0.41 -2.17 -4.12 7.38 6.25 5.27 13.87ICICI Pru Gilt-lnvest(G) 31.73 9-Aug-99 792 0.09 0.26 1.29 31.07 17.08 12.36 21.77

Returns as on 31st July, 2009

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MF Scorecard

Scheme NameNAV(Rs.)

InceptionDate

Absolute % CAGR % AUM

(Rs. cr)1 M 3 M 6 M 1 Y 3 Y 5 Y Since

Inception

Gilt - Short TermBirla Sun Life Gilt Plus-Liquid(G) 20.45 11-Oct-99 15 0.24 0.80 1.89 3.37 5.89 6.02 10.66

Liquid FundsBirla Sun Life Cash Mgr-Ret(G) 21.88 14-May-98 826 0.38 1.22 2.82 7.29 8.21 7.64 10.58

Birla Sun Life Cash Plus-Ret(G) 23.92 13-Jun-97 8277 0.36 1.11 2.54 6.90 8.13 7.64 11.47

Kotak Liquid(G) 17.44 6-Oct-00 3318 0.35 1.09 2.51 7.01 7.70 7.17 8.43

LICMF Liquid(G) 16.37 13-Mar-02 13637 0.43 1.33 3.05 8.06 8.82 8.33 8.62

Magnum InstaCash-Cash(G) 19.95 19-May-99 3073 0.35 1.11 2.64 7.14 8.14 7.63 9.71

Reliance Liquid-Cash(G) 14.76 4-Dec-01 52 0.19 0.49 1.12 4.77 5.97 5.95 6.22

UTI-Money Mkt(G) 25.06 23-Apr-97 1266 0.42 1.30 2.98 7.85 8.34 7.85 12.27

Ultra Short Term PlansBirla Sun Life Savings-Ret(G) 16.65 26-Nov-01 20953 0.40 1.27 2.88 7.58 8.37 7.95 8.66

DSPBR Money Mgr-Reg(G) 1239.78 18-Jul-06 1738 0.23 0.94 2.78 7.41 - - 7.99

ICICI Pru Flexible Income(G) 16.60 21-Sep-02 21859 0.44 1.37 3.08 8.00 9.02 8.07 9.64

Principal Ultra ST-Reg(G) 11.49 6-Nov-07 736 0.45 1.32 3.02 7.91 - - 8.60

Long & Medium Term Income

Reliance Reg Savings-Debt(G) 12.03 10-Jun-05 2 0.47 0.21 4.09 6.14 5.33 - 4.81

UTI-Invest Bond-I(G) 10.42 31-Dec-07 1 -0.15 -0.39 -0.16 1.00 - - 0.22

Monthly Income PlansBirla Sun Life MIP II-Savings 5(G) 16.00 30-Apr-04 51 1.56 4.60 6.39 21.25 14.64 - 11.55

Birla Sun Life MIP II-Wealth 25(G) 15.89 30-Apr-04 58 2.68 8.74 18.60 18.79 8.95 - 11.34

Birla Sun Life MIP(G) 23.58 10-Nov-00 96 1.85 4.05 11.57 18.08 10.52 10.66 15.61

Birla Sun Life Monthly Income(G) 32.28 14-Jul-99 123 1.87 6.64 13.73 19.01 12.69 12.58 21.60

DBS Chola MIP(G) 17.99 1-Aug-98 17 1.93 6.31 7.91 8.27 14.40 12.82 5.27

DSPBR Savings Plus-Agg(G) 17.28 20-May-04 57 3.17 9.75 13.68 14.44 12.27 - 14.27

ICICI Pru Income Multiplier(G) 17.33 5-Mar-04 186 2.58 9.30 20.12 16.86 10.92 - 13.72

Magnum Income Plus-Savings(G) 10.55 22-Oct-03 2 0.09 0.23 0.38 0.85 0.57 1.13 0.93

UTI-MIS(G) 17.48 11-Oct-02 125 2.41 6.60 11.99 15.37 11.20 10.56 10.96

Short Term Income Plans

Birla Sun Life ST-Ret(G) 16.18 19-Apr-02 4982 0.41 1.21 2.77 7.49 9.18 8.16 8.48

DSPBR ST(G) 15.28 4-Sep-02 123 0.15 0.41 2.08 6.69 7.45 7.25 7.63

Sund BNPP Slct Dbt-STAP(G) 15.03 30-Aug-02 0 0.14 0.38 0.96 4.10 6.86 6.66 7.28

Real Estate Securities

ICICI Pru Real Estate Sec-Ret(G) 9.58 14-Dec-07 356 1.68 5.45 8.88 4.65 - - -2.65

Returns as on 31st July, 2009

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Derivative Strategies

Bear Spread: Taking advantage of downswingLast time we have seen bull spread strategies under vertical spread which are used when the trader has a bullish or moderately bullish view on the underlying. This time we will go in details of the bear spread strategies and will discuss when and how these strategies should be initiated.Vertical spread strategies are made up of all calls or all puts with same underlying and same expiry with different strikes and in the ratio of one is to one.Types of Vertical Spread (1) Bull Spread (i) Bull Call Spread (ii) Bull Put Spread(2) Bear Spread (i) Bear Call Spread (ii) Bear Put SpreadBull Call Spread and Bear Put Spread are debit spread strategies as while initiating these strategies, amount paid out for long option > amount received for short option.Whereas, Bull Put Spread and Bear Call Spread are credit strategies as while initiating these strategies, amount received from short option > amount paid out for long option.Bear SpreadBear spread strategies consists of buying higher strike price option while selling lower strike price option of the same underlying with same expiration. This strategy is initiated when the trader is having a bearish or moderately bearish view on the underlying.Bear Call Spread This strategy is used when the trader expects that the price direction of the underlying share or index will be downward or range-bound. This is a credit spread strategy.Strategy:Long call option with higher strike price (SP)

Short call option with lower SPProfit/Loss:Maximum profit and maximum loss is limited in this strategy.Maximum Profit = Net credit receivedMaximum Loss = [(Higher SP – Lower SP) – (Net credit received)]Breakeven Point (BEP) = Lower SP + Net credit receivedBuilding a hedge: The long call can be considered a hedge, because it protects your upside risk from the short call if your bearish view is incorrect and the underlying stock price move in an opposite direction.Example Let us take an example for better understandingSay Reliance Industries (RIL) is currently trading at Rs. 2,000 per share To initiate the strategy;Buy one RIL August 2200 call @ Rs. 70 [Assume Lot Size of 100] Sell one RIL August 2000 call @ Rs. 150

Net Credit received = Rs. 80 [Or Rs. 8,000 = (80*100)]This is the MAXIMUM PROFIT one can make. Maximum Loss = Rs. (2200 - 2000) – Rs.80 = Rs. 120BEP = 2000 + (150 – 70) = 2000 + 80 = Rs.2080Now let us consider various scenarios at the time of expiryExplanation:Assume that on the day of expiry RIL slips to Rs 1850 level which will lead to; both the calls closing out-of-the money (OTM). Therefore Rs 70 paid for buying 2200 call option will be a loss for the trader while he will keep the premium received for selling 2000 call i.e. Rs 150. So the effective profit will be (150-70) = 80.The trader will start incurring loss once the underlying moves

Closing price of RIL on expiry

Bought Aug Call 2200 @ Rs 70

Sold Aug Call 2000 @ Rs 150

Breakeven Point Profit/Loss

1850 - 70 150 2080 80

1950 - 70 150 2080 80

2000 - 70 150 2080 80

2100 - 70 (150-100) = 50 2080 (20)

2250 (-70+50) =-20 (150-250) = -100 2080 (120)

2500 (-70+300) = 230 (150-500) = -350 2080 (120)

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Derivative Strategies

above the BEP of 2080, explained by the fourth scenario. RIL closes at Rs 2100 on the day of expiry i.e. 2200 call option settles OTM therefore the premium paid for buying 2200 call i.e. Rs 70 will be the loss for the trader. Whereas, call option of 2000 SP will end in-the-money (ITM) by Rs 100 but as the trader has received Rs 150 for selling this call, he will make a profit of Rs 50 on this trade. So the effective loss will be (50-70) = - 20.

If RIL closes at Rs 2500 on the day of expiry both the options will end ITM i.e. 2200 call will be ITM by Rs 300 while 2000 call will be ITM by Rs 500. The trader will make a profit of Rs 230 on the trade of 2200 call whereas he will make a loss of Rs 350 on short option. So the effective loss will be Rs 120 and the same will be the maximum loss in any scenario as the loss on the one leg will be adjusted by the profit on the another leg.

Bear Put SpreadThe objective of initiating this strategy remains same i.e. taking advantage of the downfall in the underlying security. The strategy involves buying and selling of the puts of different strike price but of the same underlying and the same maturity. The put bought will have the effect of capping the trader’s downside while the put sold will reduce the trader’s costs, risk and raise breakeven point. It is a debit spread strategy.

Strategy:Long put option with higher SP

Short put option with lower SP

Profit/Loss:

Maximum profit and maximum loss is limited in this strategy.

Maximum Profit =

[(Higher SP – Lower SP) – (Net premium paid)]

Maximum Loss = Net premium paid

Breakeven Point (BEP) = Higher SP – Net premium paid

Example Let us consider previous example again.

Say; Reliance Industries (RIL) is trading at Rs. 1,980 per share.

Buy one RIL August 2000 put @ Rs. 150

Sell one RIL August 1800 put @ Rs. 70

Net Cost of Bear put Spread = Rs. 80

This is the MAXIMUM LOSS one can make in this strategy.

Maximum Profit = Rs. [(2000 - 1800)] – 80 = Rs.120

The maximum profit can be made if & only if RIL closes at or below the 1800 mark on expiry.

BEP = 2000 - 80 = Rs.1920

Now let us consider various scenarios at the time of expiry

Explanation:Assume that on the day of expiry RIL slides to Rs 1650 level which will lead to; both the puts closing ITM, the 2000 put will be worth Rs 350 and the net profit will be Rs 200 on this position while 1800 put will be worth Rs 150 and the net loss on this position will be Rs 80. Therefore, the effective profit will be (150-80) = Rs 120, which is the maximum profit possible from this initiation.

The profit can be made if and only if the RIL shares end at or below 1800 mark. Once the underlying starts moving above the BEP of 1920 the strategy turns unfavorable for the trader, explained by the third scenario. RIL closes at Rs 1950 on the day of expiry i.e. put option of 2000 SP will end ITM by Rs 50 but as the trader has paid Rs 150 for buying this option, he will suffer a loss of Rs 100 on this leg. Whereas, 1800 put option settles OTM leaving a profit of Rs 70 for the trader, which he had received for selling this put. So the effective loss will be (70-100) = - 30.

If RIL closes at Rs 2250 on the day of expiry both the options will end OTM i.e. 2000 put will be OTM by Rs 250 while 1800 put will be OTM by Rs 450. So the effective loss will be (70-150) = - 80.

Closing price of RIL on expiry

Bought Aug Put 2000 @ Rs 150

Sold Aug Put 1800 @ Rs 70

Breakeven Point Profit/Loss

1650 (350-150) = 200 (70-150) = -80 1920 120

1750 (250-150) = 100 (70-50) = 20 1920 120

1950 (50-150) = -100 70 1920 (30)

2000 -150 70 1920 (80)

2100 -150 70 1920 (80)

2250 -150 70 1920 (80)

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Some Investment EssentialsA passive management of finance is supposed to be a safe harboring once an investor gets a competent hand to invest on his part. Investing in stock markets appears no cakewalk and at the same time investors are confronted with the choice of stocks to be considered for investment. For an amateur investor ready to enter the market, the problem gets even compounded with his inability to trace the mis-priced stocks. Here are some handy tips to be considered while picking up stocks, particular to few ratios and parameters used in stock market parlance.PE Ratio The ratio reflects an abstract attitude of investors in the prevalent market with regard to a future movement in price pattern. A high PE ratio of a stock generally indicates bullish sentiments of the investors, who are willing and expecting higher growth of the company reflected by its earnings in the future, as compared to companies with a lower PE. The PE ratio is also sometimes referred to as a multiple, because it shows how many times a investor is willing to pay per unit of earnings. If a company is currently trading at a multiple (PE) of 20, the interpretation is that an inves-tor is willing to pay Rs 100 for Rs 5 of current earnings, as reflected by its reported earnings per share (EPS).The ratio is calculated as under- PE Ratio = Current Market Price TTM Earning Per ShareHere, TTM refers to trailing twelve months.But, the crux remains in deciding which PE ratio is high or low, since it is not an absolute term in itself. There is no hard and fast rule or a laboratory tested method to find out a high or low PE ratio, rather it is determined by a compari-

son of PE ratio within the companies in the same industry and by taking the historical average of the industry. The investors must use the PE ratio in a standard and uniform way. It will be a futile exercise to evaluate a capital goods company on its PE ratio with the PE Ratio of telecom in-dustry. For the purpose of analysis and interpretation of bank-ing stocks, keeping other things constant and leaving all the irrational movements out for a while, an insight can be gained regarding the valuation of stock reflected in the market.P-BV RatioAnalysts use PE ratio in unfolding the value of a stock in conjunction with another popular valuation ratio, known as Price to Book Value (P-BV) ratio. The PBV ratio of a stock is used to gauge the reflection of stock market to its book value. The PBV ratio is calculated as – PBV = Current Market Price Book Value Per ShareThe PBV ratio reflects the willingness of investors to which extent they are ready to pay for the company’s net assets. A stock with a lower PBV ratio is preferred over others since it is a reflection of undervaluation of the stock. As the PBV ratio varies from industry to industry it must be used with caution in order to make valuable and worthy judgment. Investors can make valuable judgments using PE ratio in conjunction with PBV ratio while drawing inference for a stock. A combined use of PE ratio and PBV ratio is of immense benefits to the investors, as it can form a base of valuing a stock. For sake of illustrating the point, following arbitrarily chosen stocks are presented with their respective PE and PBV ratios.

Some Investment Essentials

0

2

4

6

8

10

12

14

16

A B C D E F G I J K

Stocks

Ratio PE Ratio

PBV Ratio

PE & PBV Ratio

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Stocks PE Ratio PBV RatioA 8 3B 10 2C 6 2D 7 1E 12 4F 15 2G 11 1I 14 4J 7 1K 5 2

From the given diagram, it can be clearly depicted that stocks K, D, C and J are better picks among the rest since they are relatively undervalued in the given universe of stocks.For example, stock K has a lower PE as well as PBV ratio as compared to others, given its under valued position. On similar grounds, stocks C, D and J expose the same buying opportunity as they are fairly below the average market PE and PBV ratio. On the other hand, stocks like F, I, E and G are looking over-valued as they are carrying a relatively higher PE as well as PBV ratio. This means that the market force has made these stocks over-valued, which can be normalized very soon hav-ing more of downside potential rather than upside. Return on EquityReturn on equity (ROE) is one of the most important prof-itability metrics to assess the ability of a firm to generate profit from its equity financing. Return on equity indicates how much profit a company earned in comparison to the total amount of shareholder equity. Shareholder equity is equal to total assets minus total liabilities or in other way, the assets created by the retained earnings of the busi-ness and the paid-in capital of the owners.Higher the ratio, better is the profit making ability of a firm out of shareholder’s fund. Investors should scout for a stock with a higher ROE since it indicates the firm has generated good returns over a period of time to compen-sate its equity shareholders.Debt to Equity RatioIt is the ratio of long-term debt and the shareholders’ equity, showing relationship between long-term funds provided by creditors and funds provided by shareholders. A high ratio may indicate high risk, low ratio may indicate low risk.Debt to Equity ratio represents the degree of leverage in the firm. On one hand, high debt equity ratio generally means that a company has been aggressive in financing its growth with debt, it can result in volatile earnings as a result of the additional interest expense on the other. In a highly levered firm, where the debt equity ratio is high-er, the cost of this debt financing may outweigh the return

that the company generates on the debt through invest-ment and business activities and become too much for the company to handle. This situation may cause deficit posi-tion in working capital and eventually lead to bankruptcy, which would leave shareholders with nothing. Hence, the investors must check the leverage of the company by looking in debt to equity ratio.BetaThe beta of the stock measures its volatility in relation to the market, i.e, how much variation a stock has to offer with a corresponding change in the market. Beta calcula-tion measures a stock’s volatility, the degree to which its price sways and moves as related to the overall market. In other words, it can measure the risk of a particular invest-ment and or sector in relationship to the current market trends or conditions. A beta value higher than 1, indicates strong correlation between an individual stock and the market direction. A stock beta calculation of greater then 1 indicates that the price of the given security tends to move in a manner more volatile then the market. A stock beta calculation of less then 1 means that a stock or sector moves in a manner less volatile than the market. Companies with volatilities lower than the market have a beta of less than 1 (but more than 0). A beta of 1 represents the volatility of the given index used to represent the overall market, against which other stocks and their betas are measured. If a stock has a beta of one, it will move the same amount and direction as the index. There is a great gauge to understand market risk in a par-ticular investment. And it is important to calculate, assess and analyze the beta of any mid to long term hold. Often, if one intends to plan for investment in stock it would be in one’s best interest to exam the beta. Alpha Alpha is a measure of residual risk (sometimes called se-lecting risk) of an investment relative to a market index. Al-pha is the parameter which says the stock has something to offer to the investor even if the market varies or not, i.e., even when the market is flat.For example, if a security has a alpha of 0.5%, that means even if the market is flat, the stock is able to generate a return of 0.5%. Similarly, a stock with negative alpha of, say 0.3%, will generate a negative return of 0.3% even if the market is flat. By examining the alpha of the stock, one gain useful in-sight about his investment. A positive alpha represents some sort of bonus return to the investor, while a negative alpha represents a penalty. Examining these few parameters of the stocks, investors can make well informed decision with somewhat a lesser degree of risk and uncertainty involved and a prospect of good return.

Some Investment Essentials

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General Insurance

Reliance Private Car Insurance PolicyA private car is a possession that everyone will like to cherish, it is more than a means of transport. It can be used for a family outing or for your feel of freedom when the work burdens you down or it could be the primary aid in emergencies.

Private car insurance policies cover against any loss or damage caused to the vehicle or its accessories due to the following natural and man -made calamities. Legally, no private car is allowed to be driven on the road without valid insurance. Hence, it is obligatory to get the vehicle insured. Reliance Private Car Policy provides a compre-hensive protection for your valued possession. The wide spread coverage, simple policy rules, and easy transac-tion contribute to its escalating popularity.

Key Advantages of the policy:Complete Cover Reliance Private Car Insurance Policy gives the complete insurance cover on and off the road.

Instant policy issuance is one of the biggest advantages of insuring with Reliance Private Car Insurance.

Reliance offers cashless facility across 231 cities and 929 networked garages. It offers company owned and oper-ated towing vehicles for emergency assistance

Policy Coverage The policy coverage is wide and encompasses many as-pects, from the vehicle to the owner to any third party in-volved in a liability concerning the vehicle that is insured.

Vehicle Damage:The Reliance Private Car Insurance Policy covers loss or damage to vehicle due to:

Accident, fire, lightening, self-ignition, explosion, burglary, house breaking or theft, riot and strike, malicious acts, ter-rorism, earthquake, flood, cyclone and inundation, transit by rail, road, air, elevator and lift, etc.

Personal Accident Cover This policy will also cover you, the policyholder, while you are driving against any accident.

Third Party Liability As per the Motor Vehicle Act, third part liability cover is a compulsory cover to be taken by all vehicles. This cover provides against the liability for third party injury/death, third party property damage and liability to paid driver.

Add on covers Most people customise their cars so that it suits their tastes and utilisation. It offers the option to customise the policy with additional coverage for the following:

Electrical/electronic accessories

Non-electrical accessories

Bi-fuel kits comprising LPG/CNG systems

Legal liability to employee, paid driver, cleaner & conductor

Racing, speed tests, dexterity trials, hill climb extensions

Discounts If one doesn’t make a claim in the previous year, the poli-cyholder can get a ‘No Claim Bonus’ reward when he re-news his policy.

It also has the option of transferring one’s existing ‘No Claim Bonus’.

Additional discounts are given to the customers for:

• Voluntary excess

• Membership of a recognized automobile association

• Installation of anti-theft device

• Side car discount

• Specific location usage cover discount

• There are special discounts for physically challenged car owners and vintage vehicles.

Exclusions Reliance Private Car Insurance does not cover a few grounds or cases. Some of the liabilities which the car in-surance policy does not cover are:

• Normal wear and tear of the car

• Driving without valid driving license or driving under the influence of liquor or drugs

• Violating the regulations of registration

• Accidents that have occurred outside the geographical area

• Employees of Reliance

• Shareholders

• Suppliers

• Competitors

• Customers and clients

• Regulatory bodies of any kind

• Members of public organizations

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SBI Life - SudarshanSBI Life - Sudarshan is an endowment policy designed to provide savings and protection to you and your family. You can save regularly for the future. Thus at the end of the plan, you will receive a substantial amount of savings along with the accumulated bonuses declared. At the same time, your family will be protected for death risk for the full sum assured.

SBI Life - Sudarshan has two basic plans. Fixed Sum Assured Plan: Allows you to build a regular saving plan that gives you a secure amount at the end of a fixed period plus a bonus. In the unfortunate event of death before maturity, the nominee would stand to receive the Sum Assured and the bonus accrued till that date.

Increasing Sum Assured Plan - the COLA Option: The Cost Of Living Adjustment (COLA) option is so called because it serves as an automatic hedge against inflation. It allows you to increase the Sum Assured automatically by paying an additional premium compared to the Fixed Sum Assured Plan. Moreover, the life cover also automatically increases during the period as added protection to the family.

Key Features of the plan: • It offers you the option of tailoring your policy according

to your requirement and needs, by opting for various extra covers (riders) that are offered.

• This is a unique product that offers you an innovative cover (plan B) which helps you to protect your savings against ’the financial consequences of inflation’ with constant premium for the entire duration of the plan.

• It gives you protection against unfortunate terminal or dreaded illness.

• It is an insurance plan which could also act as a hedging instrument.

• With this plan you can plan your children’s future education, marriage expenses or even your own retirement – in a most flexible manner.

Benefits of the plan:Maturity Benefit: Depending upon the plan option chosen:

Fixed Sum Assured (Plan A) Basic Sum Assured along with Vested Bonus is payable

Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% per annum along with Vested Bonus is payable

Death Benefit: In the unfortunate event of death of the Life Assured, depending upon the plan option chosen:

Fixed Sum Assured (Plan A) The Sum Assured along with Vested Bonus is payable to your nominee.

Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% per annum along with Vested Bonus is payable to the nominee.

Other Benefits: If the extra covers (riders) have been opted for, the following additional benefits are payable:

Term Assurance Cover benefit: - The Term Assurance cover is payable in addition to normal death benefit.

Accidental Death and Accidental Total Permanent Disability Cover Benefit:- In case death due to an accident: The rider Sum Assured is payable in addition to normal Life cover.

In case of Total Permanent Disability due to an accident:

Tax Benefits SBI Life - Sudarshan enjoys Tax benefit u/s 80 C and 10 (10 D) of IT Act

Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D

Life Insurance

For Further Detail Contact :MR. APURVA BHATT - 24158686, 24171742

MR. KEYUR PAREKH - 26184730/31