1

Capital P

rote

ct

Cre

ate

Wealth

“Rule No 1: Never lose money Rule No 2: Never forget rule No 1.”

- Warren Buffet

2

“In the short run, the market is a voting machine, But in the long term,

it is a weighing machine”

- Ben Graham

“Successful investing is about owning businesses and reaping the huge

rewards provided by the dividends and earnings growth”

- John Bogle

We Protect Capital

3

• Unlevered portfolio • Continuous monitoring

of liquidity risk

Portfolio Liquidity

• Not averse to raise cash • Portfolio exposure increased

over a period

Staggered Approach

• Exposure limits to minimize risks o ≥ 50% in large cap USD1bn+ o ≤ 10% in one stock o ≤ 30% in one sector o ≤ 50% in the top 10 stocks o Minimum investments in 30 stocks

• Tactically switching to cash from time to time

Exposure Limits

• Diversification across industries • Diversification across Mcap with

focus on liquidity • Flexible investment style – Growth

as well as Value with focus on Margin of Safety

Investment Universe

A prudent risk management strategy is the core of our investment philosophy

• Sharp Price movement triggers review of stock

• Close eye on valuation with focus on Margin of Safety

Review Points

We Create Wealth

3 Tenets to Equity investing Believe in ‘Time in the

Market’ rather than ‘Timing the market’

Growth as well as Value with focus on Margin of Safety

Diversification across sectors helps us to play sectoral

over/underweight strategy

Long term investment approach

Flexible investment style

Sectoral diversification

3M Stock Selection Approach

Identify Size of Sector Opportunity

Identify top 5 (Profitable) players in the sector

Identify the stock for investment with

Reasonable Valuation

M: Market Size

M: Market Share

M: Margin of Safety

4

Size of the opportunity should be huge to generate significant investment returns

The company be consistently profitable and should be among the leading players in the industry

The company should provide reasonable growth opportunity at reasonable Margin of Safety

Leading To Multibagger Returns

5 Note: Purchase price adjusted for any corporate action like split/bonus Gain % indicates return since purchase, *Stock sold as per price mentioned

Stock Purchase

Date Purchase Price (Rs)

Price (Rs) 30-Nov-2016

Motherson Sumi* 28-Jan-10 41 244

Eicher Motors* 08-Aug-13 3343 15249 Hitachi Life* 22-May-14 300 1360

Shree Cement 12-Nov-11 3983 15571

Maruti Suzuki 29-Jan-14 1659 5266

Eveready* 29-Sep-14 102 302 Ramco Cements 28-Mar-14 213 610

Indo Count Industries* 19-Dec-14 297 785

Bayer Cropscience* 05-May-14 1427 3547

Welspun India* 09-Jan-14 80 198

Atlas Copco* 28-Jun-10 1115 2750 Timken India 22-May-14 233 559

Capital Trust 29-Jun-15 253 601 Mannapuram Finance* 16-Dec-15 29 69

ITD Cementation* 23-Feb-15 65 143

Bajaj Finance 14-Sep-15 514 1080

Gabriel India* 01-Aug-14 55 114

Siyaram Silk Mills 01-Aug-14 604 1250

KNR Construction* 03-Dec-14 304 608

CARE* 25-Mar-14 732 1447 HDFC 10-Dec-10 669 1263

Infosys 26-Nov-09 537 975 Cholamandalam Investments 01-Mar-16 654 1185

HDFC Bank 28-Oct-10 670 1199

3M India 24-Nov-14 6475 11293

Alfa Laval India* 17-Nov-11 2246 3856

Capital First* 06-Nov-13 218 372

SQS india* 11-Apr-14 366 587 L&T 11-Apr-13 869 1383

Whirlpool 02-Mar-16 644 1006 Honeywell Automation 30-Jun-14 5790 8490

495%

356%

353%

291%

217%

196%

186%

164%

149%

148%

147%

140%

138%

135%

120%

110%

108%

107%

100%

98%

89%

82%

81%

79%

74%

72%

71%

60%

59%

56% 47%

Gain (%)

6

Earnings Matrix Sensex AAA IOP Sensex AAA IOP Sensex AAA IOP

FY16 FY16 FY17E FY17E FY18E FY18E

EPS G(%) -1% 15% 11% 23% 18% 25%

ROE(%) 13% 16% 14% 19% 15% 20%

P/E(x) 20.8 18.7 25.1 15.9 19.2

P/BV(x) 2.7 2.6 5.0 2.4 4.1

AAA Portfolio Superior Earnings Growth

Source: AAA Research

15%

23% 25%

-1%

11%

18%

-5%

0%

5%

10%

15%

20%

25%

30%

FY16 FY17E FY18E

EPS Growth(%)

AAA IOP Sensex

Source: AAA Research

16%

19% 20%

13% 14%

15%

-5%

0%

5%

10%

15%

20%

25%

FY16 FY17E FY18E

ROE(%)

AAA IOP Sensex

Source: AAA Research

Wealth Creation – A Case Study

7

Global home textile segment of $74bn growing at 5% USA imports 17% made ups with imports growing at

~12% Huge opportunity to improve market share for Indian

players in USA and Europe

Reported healthy revenue and profit growth in last 5 years

Ongoing expansion will lead to healthy profit growth over next 2-3 years

Purchased at one year forward PE of ~6x significantly lower considering its net profit size (Rs 100 crs+ FY14) and 45% ROE

Indo Count Industries Ltd

India expected to become the 5th largest consumer durables market by 2025, reaching $400 Bn by 2020

Total Size of Indian A/C industry pegged at Rs.14750 Crs, with volume growth expectation of CAGR 13-15% over FY16-20E

At 3%, India is one of the lowest penetrated market, leading to significant headroom for growth

Market share of ~8% Entry into Tier 2&3 markets with sub premium product to

improve its market share Launched new products to reach mass consumer levels Strong parentage means access to new technology to

offer world class products to Indian consumers

Expect significant growth in profitability backed by operating efficiency and higher volume growth

Market cap at Rs 800 crs, i.e. PER of below 10x FY15E – lowest in the industry compared to all consumer MNC which trades at average PE of >20x

M1

M

arke

t si

ze

M2

M

arke

t Sh

are

M3

M

argi

n o

f sa

fety

Hitachi Home and Life Solutions Ltd

4th largest bed sheet exporter to USA & 13th largest globally

Capacity expansion from 36 to 68 mn meters in last 5 years and further expanding to 90 mn meters

Focus on improving value chain by entering premium bed linen segment leading to improved operating margins

No major investment in backward integration – leading to highest ROE of 44% in the industry

The Investment Process….

Stock Identification

Analysis & Decision making Process

Portfolio Construction Monitoring & Nurturing

Exiting & Realizing Value

• Identify emerging trends and opportunities from a universe of 450 companies • Filter approach – using variety of valuation parameters • Strong intermediary relationship

• Initial screening • Corporate meeting and detailed due diligence • Presentation to investment committee seeking recommendation and approval

• Constant evaluation of valuation metrics to decide optimum return potential • Intrinsic value V/s Current Market Price to evaluate Margin of Safety • Change in underlying assumptions of investment thesis

• Combination of Top Down and Bottom Up approach with a benchmark agnostic strategy to achieve Long term investment objective

• Continuous portfolio monitoring ensures prudent risk management • Regular interaction to provide strategic inputs to strengthen systems, controls and CG

in line with best practices

8

9

Exit Strategy As Important As Entry Strategy

Fundamental Consistency check No. of BSE 500 Stocks

PAT growth 20%+ every year during FY06-FY15 0

Revenue growth of 10%+ every year with ROE 15%+ during FY06-15

16

Exit Strategy When target price of the stock is reached and the risk rewards

seems unfavorable

When change in business fundamentals resulting in negative earnings expectations

When weightage of the stock is higher than the desired allocation

When the other stock has better risk-reward

Exit from Sensex 01 Jan 2011 Vs

01 Jan 2001

Exit from Sensex 30 May 2016 vs

01 Jan 2011

ACC DLF

Ambuja Cement Hindalco

Bajaj Holdings Jaiprakash Associates

Castrol India JSPL

GSK Pharma Reliance Communication

Grasim Sterlite

HPCL Tata Power

MTNL

Novartis

Ranbaxy

Reliance Infra

Reliance Petro

Satyam

Zee

Market Outlook

10

Round Up – November 2016

During last two years, Indian government took several steps - power sector reforms, passage of GST, Bankruptcy Act, Jan Dhan (250m+ accounts), Aadhar card linked Direct Benefit Transfer (USD8bn savings annually), Auction based allocation of natural resources, etc. All these steps will lead to ease of doing business + financial inclusion + productivity gain and will result into structurally better growth for the economy.

With recent steps, we expect interest rates to fall - positive for corproate earnings and equity market. Also Combined effect of GST + Demonetisation will enable organised sector to gain market share – another positive for earnings growth.

From household savings perspective, real estate + Gold will lose their preference as investment option and Fixed income due to lower interest regime will lose its attractiveness. Thus, Equity as an asset class will attract huge inflows from the Indian Investors.

Despite all such steps, NIFTY trades at same level of Nov 2014, focusing too much on short term. However, we think that ultimately market will look beyond two quarters and may give higher PE for high quality earnings.

We are Bullish on Market with 2-3 years view and believe that the recent correction provides good entry point to build solid long term portfolio.

In last 2 years from Nov14 to Nov16, while Nifty has delivered (-)4%, AAA PMS has delivered +29.4% returns. We continue with our staggered investment approach and will use correction as an opportunity to build position in companies which meets our 3M (Market Size, Market Share and Margin of Safety) investment criteria.

11

UDAY (Ujwal Distribution companies (DISCOMs) Assurance Yojana) financial turnaround and revival package for DISCOMS via improving efficiency, reducing cost, and enforcing discipline

Bankruptcy Bill and Indradhanush to improve flow of capital and recapitalise public sector banks

Auction-based allocation of natural resources (e.g., coal)

Goods and Services Tax (GST) to streamline and simplify the national tax system

Direct Benefits Transfer (through the Jan Dhan–Aadhaar–mobile trinity) to promote direct transfers of financial benefits to beneficiaries’ bank accounts

Pradhan Mantri Awaas Yojana (Housing for All by 2022)

India – Ongoing Reforms…

12

…that will enable faster and better economic growth

13

Source: AAA Research

Source: RBI, AAA Research

2.3 2.4 2.2 2.8

3.3 3.9

4.6

7.6

2 2.2 2.2 3

3.6 4.5

5.4

9.6

0

2

4

6

8

10

12

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Gross NPA (%)

All Banks Public Sector Banks

Source: RBI, AAA Research

0.5

0.25

0.5

0 0

0.25

0

0.25 0.25

0.0

0.2

0.4

0.6

0.8

1.0

4Q

FY1

5

1Q

FY1

6

2Q

FY1

6

3Q

FY1

6

4Q

FY1

6

1Q

FY1

7

2Q

FY1

7

3Q

FY1

7E

4Q

FY1

7E

Interest Rate Cuts (%)

3

6 6

20

0

5

10

15

20

25

FY13 FY14 FY15 FY16YTD

Stressed Asset Sale (US$ bn)

142 134 130

50

0

20

40

60

80

100

120

140

160

2014 2015 2016 2020E

India - Ease of business doing rankings

Source: World Bank

From Cash to Digital Economy = Better Governance

14

UID Enrollments

100 Cr (80%)

5.9 Cr

(60%)

Aadhar linked MNERGS Cards

11.4 Cr

(45%)

Aadhar linked ration cards

12.3 Cr

(71%)

Aadhar linked LPG Connections

JanDhan

25 Cr Aadhar linked Bank

accounts opened

US$7-8bn savings annually

69

69

68

59

55

47

45

43

38

31

30

20

14

11

11

10

8

7

Indonesia

Russia

India

Thailand

Malaysia

Mexico

China

Brazil

Japan

Singapore

Korea

US

Australia

Sweden

UK

Canada

France

Belgium

Share of Cash based transactions(%)

Source: Master card Source: RBI, Ministry Of Finance

Improving Macro Economic Factors

15

Source: Ace Equity, AAA Research

Source: PPAC, AAA Research Source: IDFC Research, AAA Research

8.2 9.0

13.1

10.0

19.1

1.4

-0.2

0.2

-1.4

4.2

8.6

14.3

20.5

-5

0

5

10

15

20

25

2Q

FY1

4

3Q

FY1

4

4Q

FY1

4

1Q

FY1

5

2Q

FY1

5

3Q

FY1

5

4Q

FY1

5

1Q

FY1

6

2Q

FY1

6

3Q

FY1

6

4Q

FY1

6

1Q

FY1

7

2Q

FY1

7

2W Volume Growth(%)

-4.2

-7.9 -6.8

1.4

7.5

2.5 4.5

6.2 6.3

14.6

2.4

6.7

17.7

-10

-5

0

5

10

15

20

2Q

FY1

4

3Q

FY1

4

4Q

FY1

4

1Q

FY1

5

2Q

FY1

5

3Q

FY1

5

4Q

FY1

5

1Q

FY1

6

2Q

FY1

6

3Q

FY1

6

4Q

FY1

6

1Q

FY1

7

2Q

FY1

7

PV Volume Growth(%)

Source: Religare Research, AAA Research

-0.3

0.8 1.6

4.4 4.6 3.5

5.4 6.6

11.0 11.1

14.7

10.2

5.9

-2

0

2

4

6

8

10

12

14

16

2Q

FY1

4

3Q

FY1

4

4Q

FY1

4

1Q

FY1

5

2Q

FY1

5

3Q

FY1

5

4Q

FY1

5

1Q

FY1

6

2Q

FY1

6

3Q

FY1

6

4Q

FY1

6

1Q

FY1

7

2Q

FY1

7

Fuel Consumption Growth(%)

6.3 7.0

9.4 8.8

10.2

6.3 7.2

8.9

6.9 6.5

0

2

4

6

8

10

12

1Q

FY1

5

2Q

FY1

5

3Q

FY1

5

4Q

FY1

5

1Q

FY1

6

2Q

FY1

6

3Q

FY1

6

4Q

FY1

6

1Q

FY1

7

2Q

FY1

7

Traffic Growth (%)

Drivers Of Growth – Investment By Government

16

9900

2000 3621

7980 10000

25000

0

5000

10000

15000

20000

25000

30000

FY12 FY13 FY14 FY15 FY16 FY17E

MORTH Project Awards (Kms)

Order inflow trend saw jump of 26% YoY

42

17

6

21

49

0

10

20

30

40

50

60

FY13 FY14 FY15 FY16 FY17E

Railways Plan Expenditure growth (%)

Source: IDFC Research, AAA Research

Source: Emkay Research, AAA Research Source: MORTH, AAA Research

India Economy Recovery: Likely Repeat of FY03-08

17

Source: RBI, AAA Research

Source: CSO,MOSL, AAA Research

4.2

5.4

3.8

8.0 7.1

9.5 9.6 9.3

6.7

8.6 8.9

6.7

4.5 4.7

7.3 7.6 7.7

0

2

4

6

8

10

12

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E

GDP Growth (%)

Average GDP: 7.0%

5.0

2.7

5.7 7.0

11.7

8.6

12.9

15.5

2.5

5.3

8.2

2.9

1.1

-0.1

2.8 2.4

5.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E

IIP Growth (%)

Average IIP: 5.9%

Dissecting the economic recovery of FY03-08

27%

40% 39.7%

16%

31%

47.9%

26%

90%

47.3%

23%

11%

26.1%

53%

65%

45.8%

33%

60%

72.3%

43%

62%

22.0%

32%

73%

54.4%

17.6%

15.6%

52.2%

21% 21%

26.6% 25%

38.7%

0%

20%

40%

60%

80%

100%

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

Rev

enu

e

PA

T

Mca

p

PA

T

Mca

p

Auto Banking Cement Consumer FMCG

Consumer Durables

Engineering IT Mining & Metal

Oil & Gas Pharma Sensex

Sectoral CAGR FY03-08 (%)

Source: BSE, AAA Research

Sensex Net profit CAGR: 25.0% Sensex Returns CAGR : 38.7%

Market Cap Returns > Net Profit Growth

18

0

2

4

6

8

10

12

14

16

BSE Auto BSE Banking BSE Consumer

Durable

BSE Capital Goods

BSE FMCG BSE Healthcare

BSE IT BSE Metal Sensex

5.3x

6.6x

3.3x 3.2x 2.7x

8.7x

15x

7x

5.1x

Source: BSE

Sensex went up by 5.1x Cyclical indices went up by 5-15x

Dissecting The Economic Recovery Of FY03-08

19

Focus On Stock Earnings Growth - Earnings Growth To Bounce Back

20

Source: Bloomberg , AAA Research

81 129 181

250 266 291 278 280 216 236 272

348 450

523

718 833 820 834

1,024 1,124

1,183

1,340 1,355 1,340 1,447

1,621

1,913

FY9

3

FY9

4

FY9

5

FY9

6

FY9

7

FY9

8

FY9

9

FY0

0

FY0

1

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7E

FY1

8E

FY1

9E

FY93-96 EPS CAGR 45%

FY96-03: EPS CAGR 1%

FY03-08 EPS CAGR 25%

FY08-16 EPS CAGR 6.1%

FY16-19E EPS CAGR 12.6%

Sensex CAGR -1.4%

Sensex CAGR 38.7%

Sensex CAGR 6.2%

Sensex CAGR

??

Sensex CAGR 13.9%

After reporitng single digit earnings growth (FY08-16), Sensex is expected to report healthy double digit growth (FY16-19E)

Events during last three years

21

China Slowdown – Fall in commodity prices China – Yuan Devaluation BrExit – Europe Slowdown USA election – Win by Donald against poll Demonetisation Impact

Perf(%) CNX Nifty AAA PMS

2 Years -4.2 29.4

3 Years 33.2 129.5

5 Years 70.2 245.3

Uncertainty in the short term creates opportunity in the long term

Market Valuations

22

Sensex @27930 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E FY19E EPS (Rs) 821 826 1,013 1,123 1,185 1,340 1,355 1,340 1,447 1,621 1,913

EPS G(%) -1% 1% 23% 10% 6% 13% 1% -1% 8% 12% 18%

BV (Rs) 4,441 5,101 5,944 6,842 7,790 8,862 9,540 10,143 10,756 11,405 12,170

P/E(x) 24.8 23.5 21.2 19.7 19.9 18.4 16.4 13.9

P/BV(x) 3.7 3.8 3.2 2.8 2.6 2.5 2.3 2.2

ROE(%) 18.5% 16.2% 17.0% 16.4% 15.2% 15.1% 14.2% 13.2% 13.5% 14.2% 13.2% Source: Bloomberg, AAA Research

Source: AAA Research Source: AAA Research

7

12

17

22

27

No

v-0

6

No

v-0

7

No

v-0

8

No

v-0

9

No

v-1

0

No

v-1

1

No

v-1

2

No

v-1

3

No

v-1

4

No

v-1

5

No

v-1

6

P/E Fwd (x)

P/E Fwd(x)

1.3

1.8

2.3

2.8

3.3

3.8

4.3

4.8

5.3

No

v-0

6

No

v-0

7

No

v-0

8

No

v-0

9

No

v-1

0

No

v-1

1

No

v-1

2

No

v-1

3

No

v-1

4

No

v-1

5

No

v-1

6

P/B Fwd (x)

P/B Fwd(x)

Mean 17.0x

Mean 2.7x

The people running the show at AlfAccurate Advisors

23

The AlfAccurate Advisors Team

24

Rajesh Kothari Govind Agrawal

Founder and Managing Director Director

Bhushan Koli

Head Operations and Compliance

Bhushan Koli

Award Winning Investment Team

Mr. Rajesh Kothari – Managing Director (Grad CWA, MBA)

Rich experience of more than 22 years in Indian capital market

Expertise in both Long Only & Long Short investment strategy

Former Director with Voyager Investment Advisors (US$500m) – USA based India dedicated

fund for two and half years

During his tenure, fund Outperformed the benchmark indices significantly

Former Fund Manager with DSP Merrill Lynch (now DSP Blackrock) Fund Managers Ltd for

more than four years

During his tenure equity assets under management grew from USD100m to USD1.5bn

The schemes delivered annualized return of 55% (Equity Fund) & 62% (Top100 Fund) outperforming

benchmark indices by more than 20% & 10% respectively

The equity schemes maintained its “1st Quartile Ranking” consistently during his tenure

25

Achievements:

Received CMA Young Achiever Award 2014

Rated as “Platinum Fund Manager” by Economic Times for DSP ML Equity Fund on a risk-adjusted return

basis in July 2006

Rated as “Gold Fund Manager” by Economic Times for DSP ML Balanced Fund on a risk-adjusted return

basis in July 2006

CNBC TV18 - CRISIL Mutual Fund of the Year Award 2006 for DSPML Equity Fund

Lipper India Fund Awards 2006 for best equity fund group for 3 years

DSPML Technology.com Fund - best fund in the equity sector in the IT category (5 years, 8 eligible schemes)

He was invited at Maharashtra Economic Summit to present views on Indian Infrastructure

(http: //maharashtrasummit.mieda.in/Program.aspx)

Invited by Institute of Directors to present views on Governance Deficit

Invited by World Council for Corporate Governance to present views on Governance

Elected on the advisory panel of World CSR forum.

Actively involved with Arham Yuva Group - a philanthropic initiative

Award Winning Investment Team

26

Glimpses Of Superior Performance To Benchmark Index

27 Note: Past performance may or may not be sustained in future

Consistent Superior returns to Benchmark Index

*(FY10 is from 23 Nov 2009 - 31 Mar 2010) #(1 April 2016 – 30 Nov 2016)

0 200 400 600 800

1000 1200 1400 1600 1800 2000 2200 2400 2600

FY03 FY04 FY05 FY06 Jun06-Dec08

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17YTD#

Funds managed by Rajesh(%) BSE 500 Index(%)

26.5% CAGR

12.8% CAGR

Rs 10,000 invested in Mar02 is worth presently Rs 2,39,680

-50

0

50

100

150

FY03 FY04 FY05 FY06 Jun06-08 FY10* FY11 FY12 FY13 FY14 FY15 FY16 FY17YTD#

DSP MerillLynch MF Voyager AlfAccurate Advisors

Funds Managed by Rajesh Benchmark Index

Mr. Govind Agrawal – Director (FCA – Chartered Accountant, LLB)

Rich experience of 28 years in finance out of which last 22 years in Indian capital market

Former Fund Manager with Reliance Capital Asset Management Company (USD 20bn) for over

four years.

Reliance Emergent India Fund (USD 100m offshore fund) outperformed benchmark indices by 35% since

its inception.

Travelled intensely across globe to meet the investors and presented the firm for India and Emerging

Market as Investment Theme

Played instrumental role in setting up Macro Economic Research desk

Former Executive Director with UBS Securities India Pvt Ltd, a Swiss Bank subsidiary, for 4 years

Responsible for India Account Manager for large FIIs

Guided the portfolio managers for right country, sectors and stocks weightings

Award Winning Investment Team

28

Former Senior VP – Equity Sales with Motilal Oswal Securities Ltd for 10 years

Played key role in establishing institutional equity broking business, systems and processes

Was account manager for major institutional domestic and foreign accounts advising the clients on sectoral allocation

and stock selection

Achievements

Represented Reliance AMC on international platforms and panel discussion on Emerging Markets and Indian

Equity Market

Addressed investors’ meet and the private banking teams of large banks in Middle East, Asia, London,

Europe and in India

At UBS, was voted as the “Best Equity Sales Person‐Mega Funds category, Asia Money 2006”

Won several awards at Motilal Oswal for consistently contributing to Institutional Equity Sales

29

Award Winning Investment Team

The AlfAccurate Advisors philosophy

30

AlfAccurate Advisors

To be the world’s most admired investment advisor

We are specialists in Indian capital markets with combined experience of 70+ years

Protect Capital , Create Wealth

31

Our Guiding Principles

Ambition

Entrepreneurship

Accountability

Passion

Excellence

Commitment

Teamwork

Integrity

Meritocracy

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Investment Philosophy...

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Fundamental Research core of our investment management

Long Term Horizon

Constant endeavor to be ahead of the Market

Emphasis on value research Vs commodity research

Benchmark aware but not driven

Flexible investment style

Focus on margin safety

Combined With Investment Discipline...

Parameter Rules Current Position

Cap Exposure At least 50% in large cap(More than USD1bn) 57.0% invested in large cap

Sector Weightage Not more than 30% in one sector Maximum exposure in a given sector is 19.9%

Stock Weightage Not more than 10% in a given stock and not more than 50% in the top 10 Stocks

Maximum Exposure in a given stock is 3.4%. Top 10 stocks as percentage of portfolio is 27.5%

Number of Stocks Minimum 30 Stocks 56 stocks

Stock Universe 450 Corporates 450 Corporates

Number of Stocks: 56 Number of Sectors: 15 Top 10 Stocks as % of portfolio: 27.5% Data as on 30 Nov 2016 34

57%

26%

13% 4.0%

Portfolio Allocation

Large Mid Small Cash

Sector Allocation

Agri Input Auto Auto Ancillary Banking Cement Construction Consumer Engineering Media Oil & Gas Others Pharma Power Software Textiles Cash & Cash Equivalent

Leading To Superior Performance

Performance (%) FY17YTD# FY16 FY15 FY14 FY13 FY12 FY11 Since Inception*

AAA India Opp. Plan 15.2 2.5 71.7 29.0 11.2 9.6 18.6 299.1

BSE 500 Index 9.9 (7.8) 33.2 17.1 4.8 (9.1) 7.5 68.1

BSE Sensex 5.2 (9.4) 24.9 18.8 8.2 (10.5) 10.9 55.1

S&P CNX NIFTY 6.3 (8.9) 26.7 17.9 7.3 (9.2) 11.1 61.2

*(23 Nov 2009 – 30 Nov 2016)(Management fees adjusted); #(1 April 2016 – 30 Nov 2016)

AAA India Opp. plan consistently not only outperformed but also generated Positive return in volatile markets

Note: Returns of individual clients may differ depending on time of entry in the Strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments

35

18.6 9.6 11.2

29.0

71.7

2.5

15.2 7.5

-9.1

4.8

17.1

33.2

-7.8

9.9

-20

0

20

40

60

80

FY11 FY12 FY13 FY14 FY15 FY16 FY17YTD#

AAA India Opportunity Plan - Equity Vs BSE 500 Index (%)

AAA India Opportunity Plan - Equity BSE 500 Index

Leading To Superior Performance

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AAA India Opp Plan ranks # 1 compared with 141 diversified funds of each reputed fund house

Average Monthly Rolling Returns Since Inception(%)

Note: Returns of individual clients may differ depending on time of entry in the Strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments

Compounded Annual Returns (%)

1 YEAR 2 YEARS 3 YEARS 5 YEARS Since Inception*

AAA India Opp. Plan 9.3 13.8 31.9 28.1 21.9

BSE 500 Index 5.8 1.1 13.8 12.8 7.7

BSE Sensex 1.9 -3.6 8.6 10.6 6.5

S&P CNX NIFTY 3.6 -2.1 10.0 11.2 7.1

*(23 Nov 2009 – 30 Nov 2016 )(Management fees adjusted)

*Since Inception (23 Nov 2009 – 30 Nov 2016 )(Management fees adjusted)

Source: Bloomberg

Performance Vs leading Mutual Funds Since Inception(%)

299.1

167.1

117.0 92.1

53.2 68.1 55.1 61.2

AAA India Opp. Plan*

Quartile 1 Quartile 2 Quartile 3 Quartile 4 BSE 500 Index

BSE Sensex

S&P CNX Nifty

24.3 25.7 24.8

8.9 10.2 9.1

0

5

10

15

20

25

30

1 Year 3 year 5 Year

AAA India Opp. Plan BSE 500 Index

Leading To Superior Performance

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Note: Equity return scenarios are assumed expected returns.

The Power Of Compounding – A Scenario Analysis

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Scenarios based on investment of Rs 5 Crores

The real power of compounding is seen only over the long term

12% CAGR 15% CAGR 20% CAGR

30Yrs

150 Cr

9 Cr

20Yrs 5Yrs 10Yrs

16 Cr

48Cr

331 Cr

20 Cr

5Yrs

82 Cr

20Yrs 30Yrs 10Yrs

10 Cr

10Yrs 30Yrs

717 Cr

20Yrs

137 Cr

26 Cr

5Yrs

11 Cr

30Yrs 20Yrs

1,187 Cr

5Yrs

31 Cr

192 Cr

10Yrs

12 Cr

18% CAGR

Why We Should Be Your Choice Of Investment Advisory

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Strong domain knowledge in Indian Capital markets

Expertise in both – Long Only and Long Short Investment Strategy

Sound Research capabilities

Award winning investment team and track record Process driven organization

Adequate infrastructure to support scalability

Integrity and ethics as the core of the business

Access to Founders – founders are fund managers

Staggered investment approach

Client centric business model

No conflict of interest

Product Features

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Name of plan AAA India Opportunity Equity PMS Plan

Objective Long Term Capital Appreciation

Investment Theme To invest in listed companies with combination of high growth stocks as well as value stocks

Principal Officer Rajesh Kothari

Director Govind Agrawal

Custodians Deutsche Bank, India

Fund Accountant Deutsche Bank, India

Depository Participant IL&FS, India

Mode of payment Fund transfer/cheque/stock transfer

Awards and Recognitions

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Dr. Jitendra Singh, Union Minister of State (I/C), Prime Minister Office, giving Certificate of Merit – CMA Young Achiever Award – 2014

Lipper Fund Award – India 2007

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Thank You Rajesh Kothari T: +91 22 42360301 M:+91 98200 09226 rajeshkothari@alfaccurate.com

Govind Agrawal T: +91 22 42360 311 M: +91 93208 51013 govindagrawal@alfaccurate.com

AlfAccurate Advisors Pvt. Ltd 503, B Wing, Naman Midtown, Elphinstone Road, Mumbai - 400 013, India T: +91 22 42360300; F: +91 22 42360333 info@alfaccurate.com www.alfaccurate.com

Disclaimer: Equity Investments are subject to market risks , read all plan related documents carefully. This document is not for public distribution and has been furnished to you solely for your information and may not be reproduced or redistributed to any other person. This material is for the personal information of the authorized recipient. The material is based upon publicly available information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon. Opinions expressed are our current opinions as of the date appearing on this material only. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Past performance may or may not be sustained in future. No part of this material may be duplicated in any form and/or redistributed without AlfAccurate Advisors Pvt Ltd.'s prior written consent. In so far as this report includes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. Alfaccurate Advisors Pvt. Ltd and any person connected with the firm, does not accept any liability arising from the use of this document.

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