INDIAN ECONOMY AND STOCK MARKET The March Forward

20 YEARS OF CONCERNS, CHANGES, OPPORTUNITIES & ASPIRATIONS JANUARY-2012

1

Developed Markets snapshot - CY 11

Developed Markets Primary equity Index Currency Value % change Value % change Australia 4056.6 -14.5 1.0 -0.2 Austria 1891.7 -34.9 1.3 -3.2 Belgium 2083.4 -19.2 1.3 -3.2 Canada 11955.1 -11.1 1.0 2.3 Denmark 390.0 -14.8 5.7 3.0 Finland 5355.1 -30.1 1.3 -3.2 France 3159.8 -17.0 1.3 -3.2 Germany 5898.4 -14.7 1.3 -3.2 Greece 680.4 -51.9 1.3 -3.2 Hong Kong 18434.4 -20.0 7.8 -0.1 Ireland 2901.8 0.6 1.3 -3.2 Israel 1085.6 -18.2 3.8 8.1 Italy 15089.7 -25.2 1.3 -3.2 Japan 8455.4 -17.3 76.9 -5.2 Netherlands 312.5 -11.9 1.3 -3.2 New Zealand 3274.7 -1.0 0.8 -0.4 Norway 357.6 -10.7 6.0 2.6 Portugal 5494.3 -27.6 1.3 -3.2 Singapore 2646.4 -17.0 1.3 1.0 Spain 8566.3 -13.1 1.3 -3.2 Sweden 987.9 -14.5 6.9 2.6 Switzerland 5936.2 -7.8 0.9 0.3 United Kingdom 5572.3 -5.6 1.6 -0.4 United States 1257.6 0.0 CDS Interest Rate ( ST) Value % change Value % change 81.2 61.1 4.7 -6.0 190.3 89.8 1.4 40.6 316.0 45.0 1.4 40.6 1.4 9.8 137.0 198.8 1.0 -17.6 77.7 132.3 1.4 40.6 222.3 120.1 1.4 40.6 103.8 77.6 1.4 40.6 184.9 1.4 40.6 90.3 0.4 36.1 726.1 18.1 1.4 40.6 2.6 17.8 503.1 111.0 1.4 40.6 143.1 98.5 0.3 -1.1 121.7 93.1 1.4 40.6 96.9 56.0 2.7 -14.2 44.3 88.5 2.9 11.2 1092.7 118.7 1.4 40.6 0.4 -10.9 393.4 12.6 1.4 40.6 78.0 129.3 2.0 3.2 2.2 0.1 -69.6 97.5 34.6 1.1 42.6 50.8 21.0 0.6 91.9

Source: Bloomberg; all changes YoY; Data as on 30-12-11)

Emerging Markets snapshot CY11

Emerging markets Primary equity Index Currency CDS Interest Rate ( ST) Value % change Value % change Value % change Value % change 2199.4 -21.7 6.3 -4.7 148.9 114.7 6.3 -0.5 15454.9 -24.6 53.1 18.7 8.6 20.0 1530.7 0.8 3.2 3.4 147.4 97.8 3.2 8.1 1825.7 -11.0 1152.5 2.3 170.0 77.8 3.6 26.8 7072.1 -21.2 30.3 3.3 0.8 28.4 911.1 16974.2 37595.4 1402.2 51266.6 2462.6 56754.1 4177.5 12665.7 37077.5 1085.6 6417.7 31985.7 1353.4 -25.6 -20.4 -20.8 -16.9 -22.3 -30.1 -18.1 -15.2 -18.3 -3.8 -18.2 -3.1 -0.4 -17.0 19.7 243.0 3.4 32.1 1.9 4.3 1.9 519.6 1938.5 13.9 3.8 3.8 8.1 3.7 5.6 16.8 16.3 5.2 22.5 8.1 12.4 11.0 1.6 12.9 8.1 0.0 22.0 0.0 173.8 622.6 280.0 275.1 287.0 919.5 161.9 131.8 154.6 153.2 94.0 61.8 94.8 88.9 103.8 52.9 45.9 56.1 36.5 35.1 1.2 7.2 4.9 7.2 11.3 23.2 10.4 5.6 5.0 4.8 2.6 0.8 5.6 1.5 -4.1 23.8 27.0 77.8 51.4 85.2 -10.8 13.9 43.5 -2.6 17.8 3.8 0.8 -29.1 China India Malaysia South Korea Taiwan Czech Republic Hungary Ploand Russia Turkey Argentina Brazil Chile Colombia Mexico Israel Saudi Arabia South Africa UAE - Dubai

201.9 448.4

60.1 6.6

Source: Bloomberg; all changes YoY

Fund flows across the globe: CY-11

Oct90-Jan91
CONCERNS

Indian BoP crisis Gold reserves pledged to raise funds INR devalued by ~ 40% FY92 GDP growth expectations were at 1.2% Rajiv Gandhi assassinated in May91 Crumbling Soviet Union - dissolved in Dec91 Gulf war starts post Iraq invading Kuwait
ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

Oct90 Jan91: -26%

Congress under the stewardship of PV Narsimha Rao as PM and Manmohan Singh as FM unleash liberalization of Indian economy Amendment to Industrial & Trade Policy, opening of more sectors for foreign investors, reduction of trade barriers etc. MRTP ordinance removes substantial restrictions on expansion of businesses Tax Reforms Initiated Indias peak direct tax, excise & custom duty rates were ~ 50% , ~40% & ~150% respectively > page 22
ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES

Corporate India seized opportunities postliberalization > page 23

5

Mar-Jul92
CONCERNS

Harshad Mehta Scam unearthed Sensex plunges Babri Masjid demolished in Dec92

March July'92: -34%

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

SEBI established / CCI abolished FIIs allowed to invest in Indian equities Raja Chelliah Report on taxation accepted Telephony & Mobile opened to the private sector Mega power project policy (for >1000MW) announced Private airlines begin to roll out services(1991-93) Cable TV started in India > page 24 US-Russia cold war formally ended US lifted trade sanctions against China NAFTA signed

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES

Zee TV started in Oct92 > page 25

6

Sep92-Apr93
CONCERNS

Mumbai bomb blasts in Mar93 - over 250 dead Latur earthquake in Sep93 over 20,000 dead 16th Sept92 Black Wednesday UK decides to withdraw from European Exchange Rate Mechanism Soros made $1 bn shorting pound

Sept92 Apr93: -35%

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

National Mineral policy announced > page 26 Interest rate de-regulation picks up pace Private sector Mutual Funds start operations European Union formally established in Nov93

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES

Infosys IPO in 1993 (Issue undersubscribed; the Underwriter had to buy the unsubscribed portion of the issue) > page 27
7

Aug94- Jan96
CONCERNS

Further INR depreciation in 1995 MS Shoes Scam dampens the market mood Major bond market correction globally Mexican financial crisis in 1994 Jan95 Japan Kobe earthquake - 5,500 dead. Economic loss of USD 200 bn Collapse of Barings
ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS
Internet commercialized in 1995

Aug94 Jan96: -28%

India joins World Trade Organization(WTO)

National Telecom Policy-NTP94 announced with licenses given for mobile services in metros & 19 circles > page 28 New Private sector banks start operations NSE (equity segment) started in Nov94

Dec95 Dec94 11: 8.7% CAGR 11: 10.7% CAGR

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES

Titan launches Tanishq jewellery in 1994 > page 29 Sun Pharma IPO -1994 HDFC Bank IPO -1995
8

Jun- Nov96
CONCERNS

1996 - Jain Hawala Scam unearthed. 24 politicians jailed May96Vajpayee Government falls in a fortnight Sep96 Taliban captures Afghanistans capital Kabul

June96 Nov96: -25%

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

Chidambaram presented the dream budget in Feb 1997 Income Tax, Corporate Tax and Customs Duty lowered. Tax Base widened. Tax on dividends abolished. Voluntary Disclosure of Income Scheme(VDIS) announced

Dec96 11: 11% CAGR

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES Steve Jobs re-joins Apple as CEO in 1996 > page 30

Sabeer Bhatia launches Hotmail in July96 Shift from scooters to fuel efficient bikes continues to hasten > page 31
9

Jul97- Jan98
CONCERNS Asian financial crisis

Industrial slowdown intensifies coupled with high interest rates

July97 Jan98: -24%

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

Independent statutory regulatory body Telecom Regulatory Authority of India(TRAI) established VDIS collects an income tax of Rs. 10,000 cr

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES

Lakshmi Mittal continues to buy steel mills in distress. Indian steel sector too faces the heat > page 32
10

Apr- Oct98
CONCERNS May98 - Pokhran nuclear test. Fear of economic sanctions

pushes stock market down Aug98 - Russian debt crisis. Russia defaults on its debt obligations
ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

Apr98 Oct98: -30%

Central Electricity Regulatory Commission(CERC) constituted National Highway Authority of India(NHAI) constituted SBI Resurgent India Bonds collect over $ 3.5bn Consumer loan cult picks up led by new private sector banks Banks starts Large-scale ATM roll-outs 1999 BJP budget promises boost to infrastructure sector New Telecom Policy(NTP99) migrates the telecom sector from fixed license fee regime to a revenue sharing mechanism and opens up long distance phone services to private competition
ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES

Dec98 11: 13.3% CAGR

HDFC Ltd. capitalizes on low penetration of mortgage finance > page 33 Indian IT companies scale up capitalizing on the back of Y2K opportunity

11

Feb00- Sep01
CONCERNS

Dot.com / Technology bubble bursts UTI suspends US-64 for 6 months in Jul01 Economic crisis in Argentina. Argentina defaults on its debt obligations 9/11 Terrorist attack on WTC Attack on Indian Parliament in Dec01

Feb00 Sept01: -51%

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

Disinvestment started with Balco, HZL, VSNL etc.> page 34 Goldman came out with the BRICs report Private Insurance Companies start operations NHAI Phase 1 approved in Dec.00 with GQ project Delhi Metro begins services in 2002

Dec01 11: 17% CAGR

ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES

Dr Reddys becomes the first Indian company to get 180 day marketing exclusivity in the US generics market for 40mg Fluoxetine in Aug 01
12

Apr-May04
CONCERNS

Sensex falls ~25% in a week as BJP loses general elections unexpectedly and NDA Govt. falls Dec04 - Tsunami hits South India & SE Asia

Apr-May04: -16%

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS

New electricity act enacted in 2003 > page 35 Gold/Silver imports freed in 2004 National broadband policy announced North-South 4-lane Highway corridor work started Right to Information (RTI) Act enacted in 2005 VAT implemented from 2005 onwards Google which signifies the full use of internet prowess lists in Aug04 with a market cap of USD 27 billion. Todays market cap ~ USD 200 bn First year of low cost airlines Air Deccan launched in 2003, gains traction benefits the consumers and the economy > page 36
ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES Investment Rate crosses 30% of GDP in FY05>page37

Feb00 Sept01: -51%11: 8.9% CAGR Dec05

Dec04 11: 13.2% CAGR

TCS IPO >page38

13

Jan08 Feb09
CONCERNS US real estate bubble bursts

Global Financial crisis engulfs the world economy Lehman collapses & Madoffs Ponzi Scheme unearthed Run on Northern Rock a British Bank

Dec07 Feb09: -56%

ECONOMIC, REGULATORY & TECHNOLOGICAL DEVELOPMENTS Government announces stimulus package and RBI

aggressively eases the monetary policy 6th Pay Commission with ~ 40% increase in salaries for Government employees announced Bush signs an energy bill requiring 40% increase in mileage by 2020 over 2007 standard Limited Liability Partnership (LLP) structure allowed Spectrum for the launch of 3G auctioned in 2010
ENTREPRENEURS SEIZE THE ENSUING OPPORTUNITIES

Dec08 11: 18.3% CAGR Dec09 11: -5.6% CAGR

E-commerce and internet companies gain traction in India. Makemytrip, RedBus, Flipkart, IRCTC.in, Snapdeal, Naukri.com, Shaadi.com etc. changing the way we live our lives Jubiliant Foodworks (Dominos) started operations in 1996, listed in 2010 - captures the changing consumption pattern in India

14

Sep10 Dec11
CONCERNS

Lingering world economic crisis

Sept10 Dec11: -23%

Corruption issues from 2G /Common Wealth Failure on policy implementation due to interministerial issues Inability to enact economic legislations stemming from political weakness Populist measures and slowing growth impacting fiscal deficit Persistent high inflation High interest rates & slowdown in capex High oil prices adding to CAD & INR weakness Asset quality concerns hit the banking sector

15

Going forward.. Opportunities ahead

Unique Identification Number (UID) Better transmission of subsidies
Goods and Services Tax (GST) The Impending biggest tax reform in India
Power sector reforms / Franchisee route for distribution Implementation of Right to Education Act Opening up of the mining sector Deregulation of the auto fuels Financial Inclusion Advancement in modern medicine continues to improve the quality of life and the longevity

Increasing participation of women in the work force Boost to consumption

Digital Inclusion / J curve in data consumption Mobile and E-Commerce Expanding E-Governance Energy efficient technologies e.g. LED / Alternate sources of power e.g. solar power
16

THE MARCH FORWARD

THERE WILL ALWAYS BE CONCERNS YET ECONOMIC, REGULATORY, TECHNOLOGICAL AND SOCIAL CHANGES WILL CONTINUE

ENTREPRENUERS WILL CAPTURE THE AVAILABLE

OPPORTUNITIES

AND THIS WILL CREATE WEALTH

SO BE AN OPTIMIST AND CONTINUE TO INVEST SYSTEMATICALLY IN EQUITIES

23/32 YEARS OF POSITIVE RETURNS >page 39

17

In the long-term: Stock Prices follow Earnings

Sensex & Sensex earnings (TTM-12) for last 10Oct90 Jan91: -26% years

Dec91 11: 10.5% CAGR

Source: Bloomberg

18

Sensex P/E ratio: At the lower end of the band Last 10 years

Source: Bloomberg

Sensex and the underlying Book Value

Sensex & Sensex BV(TTM-12) for last 10 years Jan91: -26% Oct90

Dec91 11: 10.5% CAGR

Source: Bloomberg 20

Thank You

21

Indias BoP & Taxation : 1991 to 2011

India FX Reserves $ mn
350000 300000 250000 200000 150000 100000 50000 0 Direct tax Net Indirect tax Net Direct tax/Total tax 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

1991 Highest marginal tax rate 50%

2011 30%

Direct tax revenue Rs cr

Direct tax /Total tax revenue

6,900
19.2% 2%

314,606
55.8% 6.7%

From FX reserves hardly sufficient for 3 weeks of imports in 1991, India now has FX reserves enough for 9 months of imports

Direct tax /GDP

(Source: RBI, Dept of Economic Affairs, NIPFP Study papers, Tata AMC)

India

10.6%

Tax/GDP UK 34%

US

24%
22

(Source: OECD)

Corporate India seized opportunities postliberalization

PAT FY 2011 Rs cr RIL L&T 19,738 4,002

PAT FY 1990 Rs Cr

% CAGR

91 43

29 24

SOURCE: CAPITALINE PLUS, CLSA

23

Cable & Satellite TV Households growth

C&S Subscribers mn
140

120

From 4 lacs in 1991, cable & satellite TV connections have reached 12 cr households (estimated) by 2011 No. of channels increased from 2 to over 400

100

80

60

Monthly subscription charges continue to be competitive

40

20

0 1991 1993 1995 1999 2003 2006 2009 2011

Source: Frank Small Studies (Up to 1999), KPMG, Hathway Cable, Tata AMC internal research (for2000-11) 24

Zee TV

FY11 Revenue Profit 3014 625

FY94 23 9

% CAGR 33 28

Subhash Chandra, bought the transponder on AsiaSat the only satellite beaming into India at that time - in 1991, and launched Zee TV

SOURCE: BLOOMBERG
25

JINDAL STEEL & POWER(JSPL)

Captures the opportunity thrown open by National Mineral Policy93
FY00-11 PAT CAGR 44% Mar00-Dec11 Stock Price CAGR 49%
4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 800 700 600 500 400 300 200 100 0

FY00

FY02

FY04 PAT Rs cr LHS

FY06

FY08 Stock Price Rs RHS

FY10

Dec'11

Source: Company, Bloomberg 26

Infosys
Infosys IPO June93
7,000

FY94-11 PAT CAGR 48% Mar94-Dec11 Market Cap CAGR 45%

3,500

India IT Story IT -BPO sector revenue $ 88.1 bn IT-BPO sector exports $ 59.4 bn Direct employment Indirect employment Sector revenue / GDP 1998 2011 2.5 mn 8.3 mn

6,000

3,000

5,000

2,500

4,000

2,000

1.2% 6.4%

3,000

1,500

2,000

1,000

IT,BPO exports/ Total exports 1998 4% 2011 26%

M Cap (Top 3 Listed co) Rs 483,921 cr
(Source: NASSCOM website all figures Fy-11 estimates) *M Cap based on 30/12/11 prices

1,000

500

0 FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY10 Dec'11 PAT Rs cr LHS Stock Price Rs RHS

Source: Company, Bloomberg 27

NTP94: Bharti Airtel capitalizes on the revolution in telephony

Bharti IPO02
90

Mar02-Dec11 Stock Price CAGR 34%

450

India Telecom Story 1991 MTNL subscriber share 1991 Bharti subscriber share : ~25% : 0%

80
70 60 50 40 30 20 10 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Dec'11

400
350 300 250 200 150 100 50 0

2011 MTNL subscriber market share : ~ 1.2% 2011Bharti subscriber market share :~ 25% (Source: 2011 Calculated from TRAI active subscriber numbers) 1995 Mobile charge/min 2011 Mobile charge/min FY-11 India wireless revenue (Source: Voice & Data) :~Rs. 17.0 :~Rs.0.44 : Rs 102,230 cr

FY-10 Telecoms contribution to Govt exchequer through revenue share and service tax (per ann.) Rs. 17,000 cr (Source: DoT, Govt website on service tax) FY-11 3G/ Broadband auction Rs. 105,000cr

India Wireless Subs Cr LHS

Bharti Stock Price Rs RHS Source: COAI-PWC Aug11 Report on Indian mobile sector 28

Source: Company, Bloomberg

Titan
Mar94-Dec11 Stock Price CAGR 19%
6,000 200
180 5,000 160 140 120 3,000 100

4,000

2,000

Tanishq sales cross Rs. 250 cr in FY02.

80

60
40 20

1,000

0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

Jewellery Sales Rs cr LHS Source: Company, Bloomberg

PAT Rs cr LHS

Stock Price Rs RHS

29

Apple: An example of rejuvenation and transformation

Steve Jobs re-joins Apple in 1996 & transforms the company

Launch

Cumulative Sales
Till Dec11 (mn pieces)

iPod iPhone iPad

Q2-02 Q3-07 Q3-10

321 146 40

Source: www.applinvestors.net

From a loss-making company in 1996, Apple made profits of USD26bn in 2011

Apple Inc. now is amongst the top two most valuable companies in the world with a M cap of USD 376bn (as of Sep11)
30

Hero MotoCorp
Catalyzed the Shift from Scooters to Motorcycles
Mar96-Dec11 Stock Price CAGR 30%
12,000,000 2,000 1,800 10,000,000 1,600 1,400 8,000,000 1,200 6,000,000 1,000 800 4,000,000 600 400 2,000,000 200 -

FY92

FY94

FY96

FY98

FY00

FY02

FY04

FY06

FY08

FY10

Industry Scooters LHS Source: CMIE, Bloomberg

Industry Motor Cycles LHS

Stock Price Rs RHS 31

SAIL
Mar98-Dec11 Stock Price CAGR 17%
250

200

Lakshmi Mittal
150

6th Richest in the world with net worth of $31 bn

Investing when the chips are down in a cyclical industry creates wealth (Source: Forbes Richest List2011)

100

50

FY98

FY00

FY02

FY04

FY06

FY08

FY10

Dec'11 32

Stock Price Rs.

HDFC Ltd.
Capitalizing on the under-penetration in housing finance
Mar99-Dec11 Stock Price CAGR 30%
140,000 800 700 600 500 80,000 400 60,000 300 40,000 200

120,000

100,000

20,000

100
0

Tax deduction on interest on home loans doubled from Rs. 15,000 to Rs. 30,000 in the 1998 Budget and then to Rs. 75,000 in 1999 Budget.

Outstanding Loans Rs cr LHS Source: RBI, Bloomberg

Disbursements Rs cr LHS

Stock Price Rs RHS 33

Disinvestment & Productivity improvement: Hindustan Zinc Ltd.

800,000 200,000 180,000 160,000 600,000 700,000

140,000
500,000 120,000 100,000 80,000 60,000 200,000 40,000 100,000 20,000 0

400,000

300,000

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

Zinc (tons) LHS Source: Company

Lead (tons) RHS

Silver (kg) RHS 34

Pvt sector contributes almost 40% of incremental power capacity now

9,000 45.0% 8,000 40.0%

7,000

35.0%

6,000

30.0%

5,000

25.0%

4,000

20.0%

3,000

15.0%

2,000

10.0%

1,000

5.0%

0.0%

FY05 Source: CEA

FY06

FY07 Public

FY08 Private

FY09

FY10 Pvt % of total

FY11

LHS-MEGA WATT ADDITION

35

Air traffic spurts After the advent of Budget Airlines in 2003

Domestic Air Passenger Traffic (mn)
60.0

India Aviation Story

50.0

1991 Domestic traffic 7.9 mn 2011 Domestic traffic 53.8 mn 1991 Pvt carriers share 0.4% 2011 Pvt carriers share 68.5% Airline ticket rates have remained at similar levels for the last 10 years

40.0

30.0

20.0

10.0

FY91 FY93 FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09 FY11

Source: DGCA 36

THERMAX
BENEFITS FROM INCREASING GCF/GDP RATIO Mar05-Dec11 Stock Price CAGR 19%
40.0 800

35.0

700

30.0

600

25.0

500

20.0

400

15.0

300

10.0

200

5.0

100

0.0 FY01 FY03 FY05 FY07 FY09 FY11

GCF/GDP % LHS Source: CSO, Company, Tata AMC

Stock Price Rs. RHS 37

GCF-GROSS CAPITAL FORMATION GDP GROSS DOMESTIC PRODUCT

TATA CONSULTANCY SERVICES (TCS)

IPO HAPPENED WHEN IT HAD A FAIRLY SIZEABLE BUSINESS YET HAS GIVEN DECENT RETURNS TO THE SHAREHOLDERS FY04-11 PAT CAGR 28% RETURNS SINCE IPO AUG04-Dec11 Stock Price CAGR 26%
10,000 9,000 1,200 8,000 7,000 6,000 5,000 4,000 3,000 2,000 600 1,000 1,400

800

400

200
1,000 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Dec'11 0

PAT Rs cr LHS Source: Company, Bloomberg

Stock Price Rs RHS 38

BSE SENSEX Calendar Year Returns Last 32 Years.

Positive Years Negative Years Only thrice have two consecutive years been negative 23 9 It pays to be an optimist 23/32 = 72% odds Year 2007 2006 2005 1992 1990 1988 1981 % Return 47 47 42 37 35 51 54 Year 2009 2003 1999 1991 1985 % Return 81 73 64 82 94

Year 2010 2004 2002

% Return 17 13 4 19 17 29 17 7 7 4 25

2 worst years in history of Sensex happened in recent past

Year 2001 2000 1998 1996

% Return -18 -21 -16 -1 -21 -16 -1

1997 1994 1993 1989 1984 1983 1982 1980

Year 2011 2008

% Return -25 -52

1995 1987 1986

> -25

- 25 to 0

0 to 30

30 to 60

> 60 39

Source: BSE

Statutory Details
Statutory Details: Constitution: Tata Mutual Fund (TMF) has been set up as a Trust under the Indian Trust Act, 1882. Sponsors: Tata Sons Ltd.& Tata Investment Corporation Ltd. Trustee: Tata Trustee Company Ltd., Investment Manager: Tata Asset Management Ltd. Mutual Fund Investments are subject to market risks, please read Scheme Information Document carefully before investing Disclaimer: The views expressed in this presentation are of Tata Asset Management Ltd. and are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management will not be liable in any manner for the consequences of such action taken by you. Please consult your Financial/Investment Adviser before investing The views expressed in this presentation may not reflect in the scheme portfolios of Tata Mutual Fund. This presentation has been prepared using information believed to be accurate at the time of its use. The scripts discussed in this presentation are for illustration purposes only and it should not be construed as an investment advice to deal in such scripts. This presentation captures the end-data of indices, stock prices, and market caps as of 31st December, 2011.