ABOUT KARVY

The KARVY group was formed in 1983 at Hyderabad, India. Karvy ranks
among the top player in almost all the field it operates. Karvy Computers shares
Ltd is Indias largest Register and Transfer Agent with a client base of nearly 500
blue chips corporate managing over 2 core accounts. Karvy stock brokers Ltd,
member of National stock Exchange of India. With over 6,00,000 active accounts,
it ranks among the top 5 Depository Participated in India, registered with NSDL
and CDSL karvy COM trade, Member of NCDEX and MCX ranks among the top0 3
commodity brokers in the country. Karvy Insurance Brokers is registered as a
Broker with IRDA and ranks among the top 5 insurance agent in the country.
Registered with AMFI as a corporate Agent Karvy is also among the top Mutual
fund mobilize with over Rs. 5,000 cores under management. Karvy Realty
Services, which started in 2006, has quick established itself as broker who adds
value, in the realty sector. Karvy global offers niche off shoring services to client
in the US.
Karvy has 575 offices over 375 locations across India overseas at Dubai
and New York. Over 9,000 high qualified people staff Karvy.

Karvy Early Days:Karvy the name comes from the names of the directors:
K Mr. Krishna Prasad
Mr. Arun
R- Mr. Radha Krishna
V- Mr. Venkat Krishna
Y- Mr. Yogendar

The birth last of Karvy was on a modest scale in 1979. It began with the vision
and enterprise of a small group of practicing Chartered Accounts who founded
the flagship company. Karvy started with consulting and financial accounting and
carved inroads into the field of registry and share accounting by 1985. Since
then, Karvy have utilized its experiences and superlative enterprise to go from.
Strength to Strength .. To better its services, to provide new ones, to
innovative, diversity and the process, evolved karvy as one of Indias premise
integrated financial services enterprise.

GROWTH AND DEVELOPMENT OF KARVY

Over the last 20 years Karvy has traveled the success route, towards building a
reputation as an integrated financial services provider, offering a wide spectrum
of services. And they have made the journey by taking the route of quality
service. Path breaking innovation in service, versatility in service and finally
totality in service.
Their highly qualified manpower, cutting-edge technology, comprehensive
infrastructure and total customer- focus has secured for us the position of an
emerging financial services giant enjoying the confidence and support of an
enviable clientele across diverse fields in the financial world.
With the experience of years of holistic financial behind us and years of complete
expertise in the industry to look forward to, they have now emerged as a premier
integrated financial services provider.
And today, they can look with pride at the fruits of their mastery and experience
Comprehensive financial services that are competently segregated to service
and manage a diverse range of customer requirements.

AT PRESENT STATUS OF KARVY

Present Karvy is a member of National stock Exchange (NSE), the Bombay stock
Exchange (BSE), and The Hyderabad stock Exchange (HSE).Market analysis and
market predictions are done by professional management team.
KARVY as covering the spectrum of financial services such as stock Broking
Services, Advisory Services, Stock broking ,Depository Participants, Distribution
of financial products mutual funds, fixed deposits, equities, Insurance Broking
Commodities Broking, Personal Finance Advisory Services, Merchant Banking and
corporate Finance, Placement Finance, Placement of equity, IPOs, among other.
VISION OF KARVY
To achieve and sustain market leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources to provide
world class quality services. In the process Karvy shall strive to meet and exceed
customers satisfaction and set industry standards.
Their values and vision of attaining total competence in their servicing has
served as the building block for creating a great financial enterprise, which
stands solid on their fortresses of financial strength their various companies.
MISSION OF KARVY

Our mission is to be a leading and preferred services provider to our customers,

and we aim to achieve this leadership by building an innovative, enterprising,
and technology driven organization which will highest standards of services and
business ethics.

MILE STONES OF KARVY

SERVICES PROFILE OF THE KARVY GROUP COMPANIES

KARVY STOCK BOKING LIMITED

Member National Stock Exchange (NSE), the Bombay Stock Exchange (BSE),
and the Hyderabad Stock Exchange (HSE),
Karvy Stock Broking Limited, one of the cornerstones of the Kavry edifice, flows
freely toward attaining diverse goals of the customer through varied services,
creating a plethora of opportunities for the customer by opening up investment
vistas backed by research-based advisory services. Here, growth knows no limits
and success recognizes no boundaries. Helping the customer create waves in his
portfolio and empowering the investor completely is the ultimate goal.

Why should Investors choose for KARVY ?

Excellence is next to nothing and here at Karvy everybody tries to offer
excellence services to its client through its offerings maintaining the Karvy
culture which included:1. Controlled and low cost services culture:- Karvy is there to serve its
client at the minimum possible costs.
2. Longer volume processing capability:- Being the largest financial service
provider in the country. It has the unique distinction of operating its activities on
a large scale which benefits all the parties cordially.
3. Adherence to strict time Schedule:- Karvy knows that time is money and
tries it best to finish the task within the stipulated time schedule.

4. Expertise in coordinating Multi-location Responses:- Karvy has got a

wide network and hence I can find its branches at most of the places in India.
Thus it enjoys its presence everywhere and co-ordinates among itself in solving
the quarries and in responding to any situation.
5. Expertise in managing independent entities such as Banks, Postoffices, etc:- The work culture of Karvy and the ethics followed inside Karvy
Makes its workforce with everybody. So the Karvy person establishes good
coordination with independent entities too.
6. Pooling of Group Resources:- Karvy group consists of 8 subsidiaries. So it
can easily pool up its resource for accomplishment of its goals, whenever
needed. The group can help each other whenever there are peaks and lows and
even in the case when they have huge targets just as we saw few years bank,
Tata group pooling its resources to acquire Corus.

STOCK BROKING SERVICES

It is an undisputed fact that the stock market is unpredictable and yet
enjoys a high success rate as a wealth management and wealth accumulation
option. The difference between unpredictability and safety anchor in the market
is provided by in depth knowledge of market functioning and changing trends,
planning with foresight and choosing options with care. This is what they provide
in their Stock Broking services.
They offer services that are beyond just a medium for buying and selling
stocks and shares. Instead they provide services which are multi dimensional and
multi-focused in their scope. There are several advantages in utilizing their stock
Broking services, which are the reasons why it is one of the best in the country.
They offer trading on a vast platform; National Stock Exchange. Bombay
Stock Exchange and Hyderabad stock Exchange .More importantly, they make
trading safe to the maximum possible extent, by accounting for several risk and
planning accordingly. They are assisted in this takes by their in-depth research,
constant feedback and sound advisory facilities. Their highly skilled research
team, comprising of technical analysts as well as fundamental specialists, secure
result-oriented information on market trends, market analysis and market
predictions.
This crucial information is given as a constant feedback to their
customers, through daily reports delivered thrice daily; The Pre-session Report,
where market scenario for the day is predicted, The Mid- session Report, timed to
arrive during lunch break, where the market forecast for the rest of the day is
given and the post-session Report,the final report for the day, where the market
and report itself is reviewed. To add to this repository of information, they publish
a monthly magazine.

The Finapolis which analyzed the latest stock market treads and takes a
close look at the various investment options, and products available in the
market, while a weekly report, called Karvy Bazaar Baatein, keeps clients more
informed on the immediate trends in the stock market. In addition, their specific
industry reports give comprehensive information on various industries. Besides
this, they also offer special portfolio analysis packages that provide daily
technical advice on scraps for successful portfolio management and provide
customized advisory services to help you make the right financial moves that are
specifically suited to their portfolio.
Stock Broking services are widely networked across India, with the number
of trading terminals providing retail stock broking facilities. Its services have
increasingly offered customer oriented convenience, which they provide to a
spectrum of investors. High-net worth or otherwise, with equal dedication and
competence.
But true to their spirit, this success is not their final destination, but just a
platform to launch further enhanced quality services to provide you the latest in
convenient, customer-friendly stock management.
Over the years Karvy have ensured that the trust of customers is their
biggest returns. Factors such as their success in the Electronic custody business
has helped build on their tradition of trust even more. Consequentially their retail
client base expanded very fast.
To empower the investor further they have made serious efforts to ensure
that their research calls are disseminated systematically to all their stock broking
clients through various delivery channels like email, chat, SMS, phone calls etc.

Their foray into commodities broking has been path breaking and they are
in the process of converting existing traders in commodities into the more
organized mainstream of trading in commodity futures, both as a trading and risk
hedging mechanism.
In the future, their focus will be emerging businesses and to meet this
objective, they have enhanced their manpower and revitalized their knowledge
base with enhances focus on Futures and Options as well as commodities
business.

DEPOSITORY PARTICIPANTS
The onset of the technology revolution in financial service Industry
saw the emergence of Karvy as an electronic custodian registered with National
Securities Depository Ltd (NSDL) and central Securities Depository Ltd (CSDL) in
1998.Karvy set standards enabling further comfort to the investor by promoting
paperless trading across the country and emerged as the to 3 Depository
Participants in the country in terms of customer serviced.
Offering a wide trading platform with a dual membership at both NSDL
and CDSL, they are a powerful medium for trading and settlement of
dematerialized shares. They have established live DPMs, Internet access to
accounts and an easies transaction process in order to offer more convenience to
individual and corporate investors. A team of process in order to offer more
convenience to individual and corporate investors. A team of professional and
the latest technological enhancements like SPEED-e make their response time
quick and their delivery impeccable, A wide national network makes their
efficiencies accessible to all.
ADVISIORY SERVICES
Under their retail brand Karvy the finapolis, they deliver advisory
services to a cross- section of customers. The service is backed by a team of
dedicated and expert professionals with varied experience and background in
handling investment portfolios. They are continually engaged in designing the

right investment portfolio for each customer according to individual needs and
budget considerations with a comprehensive support system that focuses on
trading customers portfolios and providing valuable inputs, monitoring and
managing the portfolio through varied technological initiative. This is made
possible by the expertise they have gained in the business over the years.
Another venture towards being investor friendly is the circulation of a monthly
magazine called Karvy the Fin polis. Covering the latest of market news,
trends, investment schemes and research-bases opinions from experts in various
financial fields.

MUTUAL FUNDS SERVICES

Karvy has attained a position of immense strength as a provider of across the
board transfer agency services to AMCs, Distributors and Investors. Nearly 40%
of the top AMCs including prestigious client like Deustsche AMC and UTI swear b
y the quality and range of services that karvy offers. Beside providing the entire
bank office processing. Karvy provides the link between various Mutual Funds
and the investors including services to the distributor, the prime channel in this
operation. Carrying the limitless ideology forward. Karvy has explored new
dimensions in every aspect of Mutual Fund Servicing right from volume
management, cost effective pricing, and delivery in the least turnaround time,
efficient back office and front office operations to customize services. Karvy has
explored new dimensions in every aspect of Mutual fund servicing right from
volume management, cost effective pricing, and delivery in the least turnaround
time, efficient back office and front office operations to customize services. Karvy
has been with the AMCs every step of the way, helping them serve their
investors better by offering them a diverse and customized range of services.
The first to market approach that is Karvys Service enhancements such as Karvy
Covers, a full-fledged call center, top-line website ( www.Karvymfs.com), the
investors and many more, creating a of galaxy of customer advantages.

KARVY CONSULTANCY LIMITED

As the flagship company of the Karvy Consultants limited has always
remained at the helm of organizational affairs, pioneering business policies, work
ethic and channels of progress.

Having emerged as a leader in the registry business, the first of the

businesses that they ventured into, they have now transferred this business into
a joint venture with Computer share Limited of Australia, The worlds largest
registrar. With the advent of depositories in the Indian capital marked and the
relationships they have created in the registry business, they believe they were
best positioned to venture into this activity as a Depository Participant. They
were one of the early entrants registered as Depository in the country and then
with CDST (Central Depository Services Limited). Today, they service over 6 lakhs
customer accounts in this business spread across over 250 cities/towns in India
and are ranked amongst the largest Depository Participants in the country. With a
growing secondary market presence, they have transferred this business to karvy
stock Broking Limited (KSBL),their associate and a member of NSE, BSE and HSE.

KARVY INVESTOR SERVICE LIMITED

Merchant Banking
Recognized as a leading merchant banker in the country, they are
registered with SEBI as a category I merchant banker. This reputation was built
by capitalizing on opportunities, which have earned us the reputation of a
merchant banker. Raising theories for corporate or Government Undertaking
successfully over the past two decades have given us the confidence to renew
their focus in this sector.
Their quality professional team and their work-oriented dedication
have propelled us to offer value-added corporate financial services and act as a
professional navigator for long term growth of their clients, who include leading
corporate, State Governments, foreign institutional investors, public and sector
companies and banks, in Indian and global markets.
They have also emerged as a trailblazer in the arena of relationships,
both at the customer and trade levels because of their unshakable integrity,
seamless service and innovative solutions that are tuned to meet varied needs.

Their team of committed industry specialists, having extensive experience in

capital markets, further nurtures this relationship.
Their financial advice and assistance in restructuring, divestitures,
acquisitions, de-mergers, spin-offs, joint ventures, privatization and takeover
defense mechanisms have elevated their relationship their relationship with the
client to one based on unshakable trust and confidence.

KARVY GIOBAL SERVIVES LIMITED

The specialist Business Process of the Karvy Group. The legacy of
experience in financial services of the Karvy Group Serves us well as they enter
the global arena with the confidence of being able to deliver well.
Here they offer several delivery models on the understanding that
business needs are unique and therefore only a customized service could
possibly fit the bill. Their service matrix has permutations and combinations that
create several options to choose from.
Be it in re-engineering and managing processes or delivering new
efficiencies, their service meets up to the most stringent of international
standards. Their outsourcing models are designed for the global customer and
are backed by sound corporate and operations philosophies, and domain
expertise. Providing productivity improvements operational cost control, cost
savings, improved accountability and a whole gamut of other advantages.
They operate in the core market segments that have emerging
requirements for specialized services. Their wide vertical market coverage
includes Banking, Financial and Insurance Services (BFIS), Retail and
Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare.

KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt. Ltd., they provide both life and non-life
insurance products to retail individuals, high net worth clients and corporate.
With the opening up of the insurance sector and with a large number of private
players in the business, they are in a position to provide tailor made policies for
different segments of customers. Itheir journey to emerge as a personal finance
advisor, they will be better positioned to leverage their relationships with the
product providers and place the requirements of their customers appropriately
with the product providers. With Indian markets seeing a sea change, bout in
terms of investment pattern and attitude of investors, insurance is no more seen
as only a tax saving product but also as an investment product By setting up a
separate entity, they would be positioned to provide the best of the products
available in this business to their customers.
Their wide national network, spanning the length and breadth of India,
further supports these advantages. Further, personalized service is provided here
by a dedicated team committed in giving hassle- free service to the clients.

KARVY COMMODITIES BROKING PRIVATE LIMITED

Commodities market, contrary to the belief of many people, has been
in existence in India through the ages. However the recent attempt by the
Government to permit Multi-commodity National levels exchanges has indeed
given it, a shot in the arm. As a result two exchanges Multi Commodity Exchange
(MCX) and National Commodity and derivatives Exchange (NCDEX) have come
into being. These exchanges, by virtue of their high profile promoters and
stakeholders, bundle in themselves, online trading facilities, robust surveillance
measures and a hassle-free settlement system. The future contracts available on
a wide spectrum of commodities like Gold, Silver, Cotton, Steel, Soya beans,
Wheat, Sugar, Channa etc., provide excellent opportunities for hedging the risks
of the farmers, importers, exporters, trades and large scale consumers, they also
make open an avenue for quality investments in precious metals. The
commodities market, as it is not affected by the movement of the stock market
or debt market provides tremendous opportunities for better diversification of
risk. Realizing this fact, event mutual funds are contemplating of entering into
this market.

Karvy COM trade Limited is another venture of the prestigious Karvy

group. With their well established presence in the multifarious facets of the
modern financial services industry from stock broking to registry services, it is
indeed a pleasure for us to make foray into the commodities derivatives market
which opens yet another door for us to deliver their service to their beloved
customers and investor public at large. With the high quality infrastructure
already in place and a committed Government providing continuous impetus, it is
the responsibility of us, the intermediaries to deliver these benefits at the doorsteps of their esteemed customers.
With their expertise in financial services, existence across the lengths
and breadths of the country and an enviable technological edge, they are all set
to bring to you, the pleasure of investing in this burgeoning market, which can
touch upon the lives of a vast majority of the population from the farmer to the
corporate alike. They are confident that the commodity futures can be a good
value addition to their portfolio.
The company provides investment, advisory and brokerage services in
Indian commodities Markets. And most importantly, they offer a wide reach
through their branch network of over 255 branches located across 180 cities.

KARVY COMPUTERSHARE PRIVATE LIMITED

KARVY have traversed wide spaces to tie up with the worlds largest transfer
agent, the leading Australian company, Computershare Limited. The Company
that services more than 75 million shareholders across 7000 corporate clients
and makes its presence felt in over 12 countries across 5 continents has entered
into a 50-50 joint venture with us.
With its management team completely transferred to this new entity, they
will aim to enrich the financial services industry than before. The future holds
new arenas of client servicing and contemporary and relevant technologies as
the are geared to deliver better value and foster bigger investments in the
business. The worldwide network of Computershare will hold us in good as they
expect to adopt international standards in addition to leveraging the of best of
technologies from around the world.
Excellence has to be the order of the day when two companies with such
similar ideologies of growth, vision and competence, get together.

ISSUE REGISTRY
Karvy towards becoming the largest transaction-processing house in the
Indian Corporate segment, they have mobilized fund for numerous corporate
sector. With an experience of handling over 700 issues, Karvy today, has the
ability to execute Voluminous transactions and hard-core expertise in technology
applications have gained us the No.1 slot in the business. Karvy is the first
Registry Company to receive ISO 9002 certification in India that stands testimony
to its stature.
Karvy has the backing of skilled human esthetic complemented by
requisite technological packages to ensure a faster processing capability. Karvy
has the benefit of a good synergy between depositories and registry that enables
faster resolution to related customer queries. Apart from its unique investor
servicing presence in all the phases of related customer queries. Apart from its
unique investor servicing presence in all the phases of a public Issue, it is
actively coordinating with both the main depositories to develop special model to
enable the customer to access depository (NSDL, CDSL) Services during an IPO.
Their trust-worthy reputation, competent manpower and high-end
technology and infrastructure are the solid foundations on which their success is
built.

Registered office

KARVY HOUSE

46, Avenue 4, Streeet No.1,

Banjara Hills,
Hyderabad-500 034
Andhra Pradesh,
India.
Telephone:- +91-40 -23312454
Fax

:- +91-40-23311968

E-Mail

:- Mailmanager@karvy.com

INDUSTRY ANALYSIS

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry can be broadly put into 4 phases according to
the development of the sector. Each phase is briefly described as under.

FIRST PHASE (1964-87):Unit trust of India (UTI) was established on 1963 by an Act of parliament. It
was set up by the Reserve Bank of India and functioned under the Regulatory
and administrative control of the Reserve Bank of India. In 1978 UTI was delinked from the RBI and the Industrial Development Bank of India (IDBI) took over
the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was unit scheme 1964. At the end of 1988 UTI had Rs. 6,700
corers of Assets Under Management (AUM).

SECOND PHASE (1987-93) :- ENTRY OF PUBLIC SECTOR FUNDS

Energy of non-UTI Mutual Funds. SBI Mutual Funds was the first followed by can
Bank Mutual Fund (Dec-87),
Punjab National Bank Mutual Funds (Aug-89),
Indian Bank Mutual Funds (Nov-89),
Bank of India Mutual Funds (June-90),
Bank of Baroda Mutual Fund (Oct-92),
LIC in 1989 and GIC in 1990. The end of 1993 marked Rs. 47,004 as Assets Under
Management.

THIRD PHASE (1993-2003):ENTRY OF PRIVATE SECTOR FUNDS

With the entry of private sector Funds in 1993, a new Era started in the
Indian Mutual Fund Industry giving the Indian investors a wider choice of fund
families. Also in 1993 was the year in which the first mutual fund regulation
came into existence under which all Mutual Funds, except UTI were to be
registered and governed. The Erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector Mutual Fund Registered in July
1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulation in 1996. The industry now
function under the SEBI (Mutual Funds) Regulations 1996.
The number of Mutual Funds houses went on increasing with many foreign
mutual funds setting up funds in India and also the industry has witnessed
several mergers and acquisition. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1,21,805 corers. The UTI with Rs. 44,541
corers of assets Under Management was way ahead of the Mutual Funds.

FOURTH PHASE ( SINCE FEBRURARY 2003):This phase had bitter experience for UTI. It was bifurcated into @ separate
entities. 1 is the specified undertaking of the UTI with AUM of Rs. 29,835 corers
(as on January 2003). The specified undertaking of the UTI, functioning under an
administrator and under the rules frames by Government of India and does not
come under the preview of the Mutual Funds Regulations.
The second in the UTI Mutual Funds LTD, sponsored by SBL, PNB and LIC. It
is registered with SEBI and functions under the Mutual Funds Regulation. With
the bifurcation of the Erstwhile UTI which has in March 2000 more than Rs.
76,000 corers of AUM and with the setting of the UTI Mutual Fund, confirming to
the SEBI Mutual Fund Regulations and with recent mergers taking place among
different private sector funds, the Mutual Fund industry has entered his current
phase of consolidation and growth. As at the end of September 2004, there were
29 Funds which manage assets of Rs. 1,53,108 corers under 421 schemes.

GROWTH IN ASSETS UNDER MANAGEMENT

NOTE:Erstwhile UTI was bifurcated into UTI Mutual Fund and the specific
undertaking of the UTI effective from February 2003. The AUM of the specified
undertaking of the UTI has, therefore been excluded from the total assets.