Impetus to medium-risk high-return stock, by capturing the complete up moves in the stock

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2 Merger & Acquisi tion Impetus to medium-risk high-return stock, by capturing the complete up moves in the stock Adroit special situation portfolio usually Event Driven & Opportunistic in nature. Special situation investments are most visible with equities, but behind the scenes Debt Re- Structu ring Contrarian at times, investing in less known & less-popular businesses having potential to deliver much superior returns Minimum investment ` 25 lakh as per SEBI guidelines.

3 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar Years CAGR Nifty 50-8% Nifty Free Float Midcap % BSE Smallcap - 17% Nifty 50 Nifty Free Float Midcap 100 S&P BSE Small Cap Nifty 50, Nifty Free Float Midcap 100 and BSE Smallcap rebased to 10 as on 1 May 2015

4 Special situations are out of the ordinary situations that companies find themselves in from time to time. Such situations present an investment opportunity to Fund Manager who can judge the implication of that opportunity that can unlock value for investors. There could be many such situations that may have the potential to unlock value of the companies. Some of these situations are- 1. De-Merger: Corporate actions often unlock a lot of value for the investors. Demergers may result in separation / spin-off of business operation / activity from some other business operation / activity. 2. Mergers: Merger of businesses or companies may result in synergies in business activities. This may result in value unlocking for the companies getting merged. 3. Debt Structuring: There may be corporates that have higher debt on their balance sheets resulting in lower profitability and cash flows 4. Buy-Back: Companies may consider a buy-back of their shares from the market due to various reasons like - company has substantial free reserves, management is confident of the future growth potential, meeting with the regulatory norms, etc. These events may lead to value unlocking for the company.

5 Other Situations: There could by many other events that may result in share price appreciation. Situations like introduction of new products, new segments, acquisition of new customers, R&D related developments, management re-structuring, capital infusion, revaluation of Fixed Assets, Properties or other assets, etc. might result in a favorable environment for stock price appreciation. INVESTMENT OBJECTIVE The objective of the Scheme is to generate long-term growth of capital by investing in a portfolio of equity and equity related securities. The Scheme would follow an investment strategy that would take advantage of Special Situations and Contrarian investment style.

6 INVESTMENT UNIVERSE QUANTITATIVE SCREEN (focus on earnings, FCF, ROA & ROE) Emerging mid & small-cap companies 500 Stocks FUNDAMENTAL ANALYSIS Secular growth thesis, Discount to intrinsic value >30% Stocks FUND PORTFOLIO High conviction Ideas, Superior risk adjusted Return characteristics Stocks

7 Sector Allocations Top 10 Holdings Banking & Finance Auto & Auto Ancillaries Oil and Gas Pharmaceuticals Scrip Names % Holdings XYZ 9.41 PQR 9.17 ABC FMCG Infotech DEF 7.94 LMN Alcoholic Beverages and Distilleries Engineering & Electricals Airlines XXX 7.77 UVW 7.04 WST 6.25 Cash POY 5.77 ROE 5.57

8 Principles of Value and Growth investing followed Focus on Capital preservation Impetus to low-risk high-return stock, by capturing the complete up moves in the stock Contrarian at times, investing in less known & unpopular businesses having potential to deliver much superior returns

9 Bottom Up Fundamental Research adds Conviction Medium and Long term mispricing in equities persists market gives us enough opportunities to buy quality growth stocks at a discount to their intrinsic value Proprietary screeners enable discovery of these stocks and companies that will create value which are still significantly under valued. Emphasis is on entry price and we invest in a company only if we have a visibility of a minimum threshold return and thorough assessment of limited down side. Long term mispricing is discovered through analysis of fundamental parameters and ratios. About Total # Companies listed in India # companies in the Investment Universe # Companies in the Portfolio Consistent track record of generating above average Return on Capital Employed (RoCE) Consistent track record of generating positive Free Cash Flows History of positive Minority Shareholder Bias Points towards sustainable growth in earnings Investment Universe of Companies Track Record Filter Size Filter Earnings Power Filter Price Filter

10 IDFC BANK Industry : Banking Private Sector Background - IDFC Bank is starting with a balance sheet size of crore. An infrastructure development fund (IDF) has been created with 440 crore of networth, 735 crore loan book and can see huge growth potential. IDFC Bank is the major contributor to the financial performance to the extent of nearly 80% of operating income. Non-bank entities includes IDFC AMC (75% stake) engaged in asset management business with its AAUM at crore as of June About Banking Industry Increase in working population & growing disposable incomes will raise demand for banking & related services. Housing & personal finance are expected to remain key demand drivers. Rural banking is expected to witness growth in the future. Wide policy support in the form of private sector participation & liquidity infusion. Healthy regulatory oversight & credible Monetary Policy by the Reserve Bank of India (RBI) have lent strength & stability to the country s banking sector. Company Analysis The proposed merger is expected to help IDFCB get closer to its target of 60% share of retail loans by Post the merger, the share of retail loans for the consolidated entity would stand at 45% In addition, the target customer segment of CAFL is complementary to that of IDFCB CAFL targets Predominantly the SME/MSME space, while IDFCB targets the rural population through its Bharat Banking model and the affluent urban population. Current Market Cap - 18,120 Cr. Fundamental Evaluation IDFCB started its banking journey two years ago, it has faced some challenges along the way. While it has charted a clear course of action over the medium term and has even acquired an MFI, overall retail traction has been slow. At the same time, with new management at the helm, the company would get another fresh start. We expect RoA/RoE to improve 20/200bp post the merger (without accounting for synergies). We believe the possible merger of CAPF with IDFCBK would bring synergy benefits for both, as complementary business profile would add to the overall business offerings

11 FUTURE RETAIL Industry : FMCG - Retail Current Market Cap - 27,309 Cr. Background - Future Retail Limited is an India-based company, which is engaged in multi brand retail trade. The Company's store networks include around 401 stores in around 122 cities, which are operated under various names, including Big Bazaar, fbb, ezone, HomeTown and Foodhall. The Company is engaged in retail trade in various areas, such as fashion, food, homeware and electronics, and technology. About Retail Industry Retail sector accounts for over 10% of the country s Gross Domestic Product (GDP) and around 8% of the employment. India is the world s fifth-largest global destination in the retail space. The Indian retail industry in the single-brand segment has received Foreign Direct Investment (FDI) equity inflows totalling $344.9 Million during April 2000 September 2015, according to the Department of Industrial Policies and Promotion (DIPP). The Indian retail industry is expected to grow to US$ 1,100 trillion by 2020 from US$ 672 billion in Healthy economic growth, changing demographic profile, increasing disposable incomes, urbanisation, changing consumer tastes and preferences are other factors driving growth in the organised retail market in India. Company Analysis Demerger of FRL into FRL and FEL (Future Enterprises Limited) will enable FRL to focus on its core business. FRL will have an asset light model as all the backend and store infrastructure will be a part of FEL. Retail business will have more than 200 Hypermarts apart from 185 EasyDay convenience stores. This will strengthen the presence of FRL in north India. FRL will pay operating lease charges for existing stores. The future store capex will be done at an arm s length basis and would be at commercial rates. Thus, for every new store addition, FRL balance sheet will show lease deposits and P&L will show higher store rentals and lease charge for furniture and fixtures. This will result in an improved balance sheet. Fundamental Evaluation The demerger will not only enable FRL to focus on its core business, the resultant entity will also likely have a balance sheet size of Rs 40 bn and ROCE exceeding 25%. Future Retail is also expected to increase the pace of store openings after the demerger, given improved balance sheet and lease based model. The Indian Government has also approved 51% FDI in multi-brand retail and 100% in single brand retail under the automatic route which is expected to give a competitive boost to the sector; thereby paving way for innovation. India is thus, expected to become a favourable market for fashion retailers on the back of a large young adult consumer base, and relaxed FDI norms; which should augur well for the company.

12 INVESTOR SUPPORT PORTFOLIO COORDINATORS Amit Kumar Gupta PMS Head ADROIT FINANCIAL SERVICES PRIVATE LIMITED , Fourth Floor Angel Mega Mall, Kaushambi, Ghaziabad, U.P Phone: , Fax: Thank You