1. In House Calls 2008 09September 2009 Private & Confidential

2. 2003 HistoryThe 2003 StoryBack in 2003, the economy was coming out of a growth slowdown led by global and local factors (drought). Valuations had hit a low point of the cycle and the market rallied hard on the back of liquidity.Central Banks around the world, including India has ease off liquidity in the markets for growth revival. This liquidity drove the markets higher. Valuations rose 50% from the lows and the market started appearing expensive.However, the expectation of growth returning and strong earnings in future was the word everywhere. Thus, despite the assets being expensive, the markets sustained its performance in 2004 and beyond. Wealth Management2 3. Will 2003 History Repeat?2009 Recalling of 2003 (Dj vu? 2003 All Over Again) We see a similar pattern this time around. Valuations cycle hit a low in March 2009.Liquidity was splashed in the system after the fiscal and monetary stimulus post 2008 crisis. Stocks have surged with the narrow indices rising ~85% from its low. Valuations have also grown by ~60% from the low.Earnings revision has also raised as the growth outlook as improved.Investors this time is concern that market is pricing in all the growth that is coming over the next 12 months.The fears of drought leading to a slowdown in growth has not helped change the outlook and these factors are causing extreme volatility.However, an outcome similar to 2003 cant be ruled out i.e., market closing on a strong note in 2009. Infact the liquidity and economic measures seems to be more forceful than in 2003. (even though valuations are higher).We are still out on the vigor of the growth recovery and we are yet to determine how much pace this market recovery gathers beyond 2009. Wealth Management 3 4. In-house calls summary11th April 08 Large cap stocks were available at reasonable valuation due to crash in the stock marketlooking at the India Growth story. Also, technical's had given a buy call for the immediate short term rally in the market &hence Invested in Large Cap Mutual Funds9th June 08 Investors who can not sustain high volatility is advised to redeem 25% to 30% of theportfolio & stay invested in liquid fund.22nd Sept 08 With an inflation hovering above 12% & 10 yr g-sec at around 8.5%, we stronglybelieved that over a period of time the spreads between G-Sec & Corporate yield willcontract which were around 400 bps Also with contracting spreads & capital appreciation in bonds makes income fund moreattractive Hence, Invest the cash into Gilt Fund Wealth Management 4 5. In-house calls summary 3rd Nov 08 Due to Lehman brothers & Other big banks collapse, the global markets had tumbledincluding India. Indian markets have almost fallen by 40% in a single month. We believed that relief rally would take place in the next 6 to 9 months & can see 50%rise in the market. Hence it is advised to switch from Mid-Cap & Opportunities fund to Large-Cap funds ina three months staggered form (STP) .24th April 09 With the credit policy out from RBI & higher volatility in interest rate, werecommended switch from Gilt fund to Short Term Income Funds / Liquid Fund & startstaggering into MIPs from now to June 09 One can also look to invest in gilt / income fund again when g-sec bounce back to 7 to7.25% Wealth Management 5 6. In-house calls summary25th May 09 The election results has turned out to be a complete Game Changer We feel that there is huge difference in valuation and earnings ratio compared to large cap and hence we recommended a switch to Midcap fund from large cap funds Large caps has already rallied in pre-election rally and also after the election results and hence we advised to book profits to the tune of 25% of the portfolio in large cap funds Investment into Mid-cap funds has to be in two stages:Lump sum investment of 25% (Switch from Large cap)Three month staggered investment (STP)13th July 09 We advised client to do lateral sift (5% 10%) to Gold from the Liquid funds. Wealth Management6 7. In-house calls performance100% Equity : 0% Debt PortfolioModel PortfolioBenchmark Index110100reduced exposure to equityasset due to high volatility 90 invest cash into Gilt & Book partial profit in Income Fund Large Cap & invest in 80 Midcap70 60 Buy call for Large cap Fund 50 40book profits in Gilt &Income Fund & invest in 30 MIP & hold cash due toelectionswitch from Mid & Opp 20 fund into large capfunds & stay in cashreduced cash exposure &made lateral shift in 10Gold 0Mar-08Mar-09May-08May-09Oct-08Dec-08Jan-08 Jul-08 Aug-08 Jan-09 Jul-09 Aug-09 Feb-08 Apr-08 Feb-09 Apr-09 Jun-08 Sep-08 Nov-08Jun-09Note: Model Portfolio does not include 20% upper circuit movement as it was declared as Non-Business day for the Equity Mutual Fund.Wealth Management7 8. In-house calls performance 75% Equity : 25% Debt Portfolio Model PortfolioBenchmark index110 105reduced cash exposure &reduced exposure to equity made lateral shift in Goldasset due to high volatility100 invest cash into Gilt &Income Fund Book partial profit in 95 Large Cap & invest inMidcap 9085807570Buy call for Large cap Fund 656055 book profits in Gilt &Income Fund & invest in 50MIP & hold cash due to 45 election switch from Mid & Opp 40fund into large cap 35 funds & stay in cash30Mar-08 Mar-09May-08 May-09 Oct-08 Dec-08Jan-08 Apr-08Jul-08Aug-08Jan-09Apr-09 Jul-09 Aug-09 Feb-08Feb-09 Jun-08Sep-08Nov-08Jun-09Note: Model Portfolio does not include 20% upper circuit movement as it was declared as Non-Business day for the Equity Mutual Fund.Wealth Management 8 9. In-house calls performance 50% Equity : 50% Debt PortfolioModel PortfolioBenchmark index 110 105reduced exposure to equity invest cash into Gilt &reduced cash 100 asset due to high volatility Income Fund exposure &made lateralshift in Gold 95Book partial profit inLarge Cap & invest in 90 Midcap 85 80Buy call for Large cap Fund75 70 switch from Mid & Opp fund into large cap book profits in Gilt & 65funds & stay in cashIncome Fund & invest in MIP & hold cash due to election 60Mar-08Mar-09May-08 May-09Oct-08Dec-08Jan-08 Apr-08 Jul-08 Aug-08 Jan-09Apr-09Jul-09Aug-09 Feb-08 Sep-08 Feb-09Jun-08 Nov-08 Jun-09Note: Model Portfolio does not include 20% upper circuit movement as it was declared as Non-Business day for the Equity Mutual Fund.Wealth Management9 10. In-house calls performance25% Equity : 75% Debt PortfolioModel PortfolioBenchmark index reduced cash exposure & made120lateral shift in Gold Book partial profit in115 Large Cap & invest inMidcap 110invest cash into Gilt & reduced exposure to equity Income Fund asset due to high volatility105100 95 90 book profits in Gilt & Income Fund & invest inBuy call for Large cap FundMIP & hold cash due to 85 electionswitch from Mid & Opp 80fund into large cap funds & stay in cash75 Mar-08Mar-09 May-08May-09 Oct-08Dec-08Jan-08Apr-08 Jul-08 Aug-08 Jan-09 Apr-09Jul-09Aug-09 Feb-08 Feb-09Jun-08 Sep-08 Nov-08 Jun-09Note: Model Portfolio does not include 20% upper circuit movement as it was declared as Non-Business day for the Equity Mutual Fund.Wealth Management10 11. In-house calls performance10% Equity : 90% Debt Portfolio Model Portfolio Benchmark index reduced cash130 exposure & made lateral shift in Gold 125 Book partial profit in120 Large Cap & invest inMidcap115 invest cash into Gilt &110 Income Fundreduced exposure to equityasset due to high volatility105book profits in Gilt &100Income Fund & invest in MIP & hold cash due to election 95 90Buy call for Large cap Fund switch from Mid & Opp fund into large cap funds & stay in cash 85Mar-08Mar-09May-08May-09Oct-08Dec-08Jan-08 Apr-08Jul-08Aug-08 Jan-09 Apr-09Jul-09Aug-09 Feb-08 Feb-09 Jun-08Sep-08 Nov-08 Jun-09Note: Model Portfolio does not include 20% upper circuit movement as it was declared as Non-Business day for the Equity Mutual Fund.Wealth Management 11 12. AssumptionsFunds SelectedEquity FundsDebt FundsLarge Cap FundGilt FundLiquid Fund Birla Frontline Equity Fund ICICI Pru Gilt Fund - Investment PlanHDFC CMF - Treasury Plan DSP Black Rock Top 100 Equity FundTempleton India Gilt Plan - Composite Plan UTI Treasury Advantage Plan HDFC Top 200 Fund HSBC Equity Fund Mid Cap FundIncome Funds Gold Birla Mid-Cap FundBirla Income PlusInvestment in Gold IDFC Premier Equity FundHDFC Income Fund Reliance Growth FundReliance Income Fund Opporunities Fund MIP DSP Black Rock Opportunities Fund Birla MIP ICICI Pru Dynamic PlanICICI Pru MIP Kotak Opportunities FundReliance MIP Benchmark Portfolios S & P Nifty 100% Equity : 0% Debt 75% - Nifty & 25% - I-Sec Composite Index 75% Equity : 25% Debt 50% - Nifty & 50% - I-Sec Composite Index 50% Equity : 50% Debt 25% - Nifty & 75% - I-Sec Composite Index 25% Equity : 75% Debt 10% - Nifty & 90% - I-Sec Composite Index 10% Equity : 90% Debt Data source: MFI ExplorerWealth Management 12 13. Limitations Entry and Exit loads have not been considered and incidentally they have nomaterial bearing in the intervening period as its been exits of older investmentsthat didnt feature exit loads. Taxation has not been considered for the purpose of illustration, as the date ofinvestments and individual tax status is unknown.Execution has been closer to the date of recommendation.Benchmark Index is calculated in proportion with Equity-Debt Allocation of thePortfolio. Eg. For a 90% Equity 10% Debt Portfolio, Benchmark Index will comprise90% allocation in NIFTY and 10% in I-Sec Composite Index. For 80% - 20% Portfolio,80 % allocation in NIFTY and 20% in I-Sec Composite Index. Wealth Management13 14. Disclaimer This note has been prepared exclusively for the benefit and internal use of the recipient and does not carry any right of reproduction or disclosure. Neither this note nor any of its contents maybe used for any other purpose without the prior written consent of Anagram Capital Limited.In preparing this note, we have relied upon and assumed, without any independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us.This note contains certain assumptions, which Anagram Capital Limited considers reasonable at this time and our views as of this date and are accordingly subject to change. Computations adopted in this note are indicative and are based on current prevailing market prices and general market sentiment. No representation or warranty is given by Anagram Capital as to the achievement or reasonableness or completeness of any idea and/or assumptions.This note does not purport to contain all the information that the recipient may require. Recipients should not construe any of the contents herein as advice relating to business, financial, legal, taxation, or investment matters and are advised to consult their own business, financial, legal, taxation and other advisors concerning the company.This note does not constitute an offer for sale, or an invitation to subscribe for, or purchase equity shares or other assets or securities of the company and the information contained herein shall not form the basis of any contract. It is also not meant to be or to constitute any offer for any transaction. Wealth Management14