Monthly Communiqué. April MOSt. Make the MOSt of our expertise. Dear Investor,

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1 Monthly Communiqué MOSt Dear Investor, April 2013 Indian equities continued to ride on weakness for the second month running with political uncertainty taking centre-stage in March. While the Nifty came off marginally by 0.2%, the broader market was much weaker with the CNX Midcap index falling nearly 2%. The Budget successfully managed to keep fiscal fears at bay and the RBI gave another 25bps monetary boost to the economy. However withdrawal of support by a key government ally made the markets jittery as the government was pushed to a thin majority. Political stability was further jeopardized with reports suggesting another ally may follow suit raising talks of an early election. Few private sector banking stocks were hard done during the month by a sting operation alleging the banks of money laundering. On the global front, the Cyprus crisis and subsequent bailout arrangement renewed Euro-zone concerns. FII flows slowed down in March, ending the month at a 4 month low of $2bn. This took the first quarter CY13 FII inflows to end at $10.3bn. Domestic Institutions persisted to be net sellers, with $1.5bn of outflows during the month. YTD, their outflows now total $6.3bn. Macro Corner Growth: Jan IIP came above market consensus (of 1.3%) at 2.4% after 2 months of contraction. While manufacturing and electricity numbers were in the green, mining at -2.9% reflected a slowdown due to environmental/forest clearance issues. Meanwhile, the Mar PMI reading at 52 was marginally lower than the 54.2 Feb print. Inflation: After a brief slowdown in Jan, WPI for Feb rose to 6.8% vs. consensus estimate of 6.6%. The hikes taken in diesel prices drove up the fuel inflation index significantly, pushing up the overall inflation index for the month. On a brighter note, RBI's proxy to core inflation manufacturing non-food inflation fell to 3.8% - below the 4% comfort zone of RBI. Meanwhile, the Consumer Price Index (CPI) print for Feb was slightly higher at 10.9% vs. 10.8% in the previous month. The core CPI increased from 8.2% in Jan to 8.4% in Feb. Policy: The RBI, in its Mid-Quarter Policy Review held on 19th March, reduced the repo rate by 25pts to 7.5% and left the CRR rate unchanged at 4%. While this was in line with market expectation, the RBI's warning of limited room for further monetary easing made markets cautious heading into the next policy meeting in May. Fund Performance There was cause for celebration in March, with our flagship large cap Value Strategy completing 10 years of existence while our midcap NTDOP fund recently achieving a 5-year track record. During this period, the Value Strategy has delivered a CAGR return of 26.0% v/s the Nifty return of 18.8%. Our NTDOP fund clocked a 5-year CAGR of 10.3% v/s the CNX Midcap Index return of -0.7%. For the month, the Value Strategy declined 1.4 %, underperforming its benchmark Nifty by 1.2 % led largely by a significant hit on some of its midcap positions. Fund performance was also affected by its exposure in the auto and oil and gas segments while select financials and healthcare outperformed. The Value Strategy ended the year with a marginally positive return of 0.5% but lagged the benchmark by 6.8 %. Notwithstanding the underperformance of some of our more recent inductions in the strategy, we remain convinced about their long-term competitive advantage in their respective businesses. If one has a look at the fundamental quality of Value Strategy versus its benchmark Nifty, we will see that Value Strategy is fundamentally sound. As per Third Quarter results Value strategy companies: Sales have grown by an average 13% v/s 11 % of Nifty. Profits have grown by an average 11% v/s 5% of Nifty. EBIDTA Margins are 29% v/s 18% of Nifty. Our flagship midcap fund NTDOP, turned in a stellar performance for the third year in a row, delivering an absolute return of 15 % for FY13 and outperforming its benchmark CNX Midcap Index by over 19 %. In its 5th year since inception the fund has delivered a CAGR return of 8.71 % vs negative 3% on the benchmark. Superior stock selection and a 'buy and hold' strategy has been the key to its consistent performance. Our other principal strategies such as Bulls Eye and the Focus series had a strong showing for the fiscal as a whole, outperforming their respective benchmarks by ~5% while Invest India underperformed by ~4 %. Outlook Market attention in the coming months, will likely shift to the March quarter earnings release to gauge overall economic activity levels and re-assess earnings potential for India Inc. in FY14. It will also have to contend with political activity around end-april when Parliament reconvenes for passage of the Budget and the Finance Bill. Even as sentiments continue to rule weak, we take note of gradual improvement in key economic parameters such as better than expected Jan '13 IIP and the recovery of exports in Feb '13, signs that industrial growth may be bottoming out even though the pace of recovery may be slow. Also, range-bound oil prices, gradually reducing fuel subsidies and weak commodity prices could all serve as important ingredients to controlling fiscal deficit, reducing inflation and stabilizing the currency in the coming months. Regards, Aashish P Somaiyaa Chief Executive Officer MOAMC do not take the responsibility for the authenticity of the above data/news/information. It is merely replication of the data /news/information already available in public.

2 Value Strategy The Strategy aims to deliver superior wealth creation by way of long term compounding effect, with investments in good businesses run by great business managers. Value based stock selection Investment Approach: Buy & Hold Investments with Long term perspective Maximize post tax return due to Low Churn Capital preservation consciousness Fund Manager Strategy Type : Manish Sonthalia : Open ended Date of Inception : 24th March 2003 Benchmark Investment Horizon: 3 Years + Subscription Redemption Valuation Point : S&P CNX Nifty Index Infotech Pharmaceuticals Oil and Gas Bosch Ltd. Nestle India Ltd. State Bank Of India Housing Development Finance Corporation Ltd. Infosys Technologies Ltd. GlaxoSmithkline Pharmaceuticals Ltd. Larsen & Toubro Ltd. Performance Data Value Strategy & Nifty Value Strategy Nifty All Figures in % Year 2 Year 3 Year 4 Year 5 Year Since Inception

3 Next Trillion Dollar Opportunity Strategy The Strategy aims to deliver superior returns by investing in focused themes which are part of the next Trillion Dollar GDP growth opportunity. Stocks with High Growth Story Stocks with Reasonable Valuation Concentration on Emerging Themes Buy & Hold Strategy Fund Manager : Manish Sonthalia Strategy Type : Open ended Date of Inception : 11th Dec Benchmark : CNX MIDCAP Index Investment Horizon: 3 Years + Subscription Redemption Valuation Point Diversified Plantation Tea & Coffee Chemicals Page Industries Ltd. GlaxoSmithkline Consumer Healthcare Ltd. Bosch Ltd. J&k Bank Cummins India Ltd. Mcleod Russel India Ltd. Pidilite Industries Limited Bajaj Finance Ltd. Ing Vysya Bank Limited City Union Bank Ltd. Performance Data NTDOP & CNX MIDCAP Next Trillion Dollar Opportunity Strategy CNX MIDCAP All Figures in % Year 2 Year 3 Years 5 Years Since Inception

4 Invest India Strategy The Strategy aims to generate long term capital appreciation by creating a focused portfolio of high growth stocks having the potential to grow more than the nominal GDP for next 5-7 years across market capitalization and which are available at reasonable market prices. Buy Growth Stocks across Market capitalization which have the potential to grow at 1.5 times the nominal GDP for next 5-7 years. BUY & HOLD strategy, leading to low to medium churn thereby enhancing post-tax returns Textiles Chemicals Retail Page Industries Ltd. Pidilite Industries Limited ITC Ltd & Fund Manager : Kunal Jadhwani Strategy Type : Open ended Date of Inception : 11th Feb Investment Horizon: 3 Years + Subscription Redemption Valuation Point Maruti Suzuki India Ltd. Bata India Ltd. IndusInd Bank Ltd. Titan Industries Limited Performance Data IIS BSE Invest India Strategy BSE 200 All Figures in % Month 6 Months 1 Year 2 Year 3 Year Since Inception

5 Focused Series IV - Flexi Cap Strategy The Strategy will aim to generate superior returns over a medium to long term by investing in only 8-10 companies across market capitalization. Fundamental Stock Selection Approach Active Equity Allocation between Mid caps & Large caps Active Asset Allocation calls between and Equity Strategy will follow a policy of profit booking with predefined price targets When the Client s AUM appreciates by 15%, the appreciation amount will be automatically paid-out. Portfolio Manager : Kunal Jadhwani Date of Inception : 07th Dec Investment Horizon: Months Subscription Redemption : No Chemicals Infotech Pharmaceuticals Textiles Bosch Ltd. Kotak Bank Pidilite Industries Limited Tech Mahindra Limited Bajaj Corp Ltd. Ipca Lab Ltd. Page Industries Ltd. Cummins India Ltd. ITC Ltd. Tata Motor Dvr Performance Data Focused Series - IV BSE & Valuation Point Focused Series IV BSE 200 All Figures in % Month 6 Month 1 Years 2Years 3 Years Since Inception

6 Focused Series V - A Contra Strategy The strategy aims to invest in fundamentally sound companies that can benefit from changes in a company s valuation which reflects a significant change in the markets view of the company over a horizon of three years. The Strategy focuses on investing in stocks that can benefit from growth in earnings, re-rating of business or higher valuation of assets. Objective is to increase return rather than reduce risk for Investors. Bottom-up stock selection approach Buy and hold philosophy low portfolio churn For Investors who seek for high returns with high risk Fund Manager : Manish Sonthalia Date of Inception : 27th Sept Investment Horizon: 2 to 3 Years Subscription Redemption Valuation Point Chemicals Oil and Gas Textiles J&k Bank Godrej Indus Ing Vysya Bank Limited Petronet LNG Limited Vardhman Textiles Limited Triveni Turbine Limited Reliance Industries Ltd Performance Data Focused Series - V BSE Focused Series V BSE 200 All Figures in % & Month 6 Months 1 Year 2 Year Since Inception

7 Bulls Eye Strategy MOSt The Strategy aims to deliver returns in the short to medium term by investing in fundamentally sound stocks coupled with active profit booking. Pharmaceuticals Infotech Education % Allocation & Active management Multi Cap Stategy Market Timing Regular Profit Booking Portfolio Manager : Kunal Jadhwani Strategy Type : Open ended Date of Inception : 15th Dec Investment Horizon: 12 Months + Subscription Redemption Valuation Point Bajaj Finserv Ltd. Tata Motor Dvr Ipca Lab Ltd. Axis Bank Ltd. Maruti Suzuki India Ltd. Cummins India Ltd. ITC Ltd. Wockhardt Lt Performance Data Bulls Eye BSE 200 Bulls Eye Strategy BSE All Figures in % Month 6 Months 1 Year 3 Years 5 Years Since Inception

8 Optima Strategy MOSt The Strategy aims to deliver superior returns over a long period by investing in companies with growth potential & which are available at reasonable market price. Growth At Reasonable Price (GARP) Investment Horizon of 2 years + Active Portfolio Rebalancing Market Timing Situation based Flexi Cap approach Portfolio Manager : Kunal Jadhwani Strategy Type : Open ended Date of Inception : 30th Dec 2008 Investment Horizon: 2 Years + Subscription Redemption Valuation Point Pharmaceuticals Infotech Education Bajaj Finserv Ltd. Axis Bank Ltd. Cummins India Ltd. Tata Motor Dvr ITC Ltd. Ipca Lab Ltd. Wockhardt Lt Maruti Suzuki India Ltd Performance Data Optima BSE & Optima Strategy BSE 200 All Figures in % Month 6 Months 1 Year 2 Year 3 Year Since Inception

9 Celebrating 10 years of Focus and Discipline Discovering an original investment idea involves deep and meticulous analysis to discover the hidden true values. With Value Strategy, we have been focusing on finding the true value through study of underlying long-term growth potential of companies for last 10 years. The strategy looks to make long term investments with a Buy and Hold approach in around 15 companies that are marked by Q-G-L signifying Quality, Growth and Longevity. Particular 3 Years 5 Years Since Inception th 24 March, 2003 Value Strategy 5.14% 8.20% 25.92% NIFTY 2.68% 3.72% 18.78% The above strategy returns are of a Model Client as on 31st March, 2013 Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The stocks forming part of the existing portfolio under Value Strategy may or may not be bought for new client. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Name of the PMS Strategy does not in any manner indicates its future prospects and returns. Above Returns are annualized Call: Website: pms@motilaloswal.com Celebrating 5 y ears of 10 Years For the last 5 years, the Next Trillion Dollar Opportunity Strategy (NTDOP) has been focused to invest in opportunities amongst Emerging Stocks/Sectors. The strategy invests in themes /stocks in the small and mid cap segment which are available at reasonable valuations and expected to be a part of the NEXT TRILLION DOLLAR GDP GROWTH. Invest now and make the most of the growth opportunity Particular 2 Years 4 Years Since Inception th 11 December, 2007 Focus on Opportunity NTDOP 13.52% 33.42% 8.71% CNX Midcap Index -4.05% 21.39% -2.94% The above strategy returns are of a Model Client as on 31st March, 2013 Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The stocks forming part of the existing portfolio under NTDOP Strategy may or may not be bought for new client. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Name of the PMS Strategy does not in any manner indicates its future prospects and returns. Above Returns are annualized Call: Website: pms@motilaloswal.com Celebrating Years MOSt E 5 N XT Trillion Dollar Opportunity Strategy Disclaimer : Investments in Securities are subject to market and other risks and there is no assurance or guarantee that the objectives of any of the strategies of the Portfolio Management Services (PMS) will be achieved. Investors in the PMS Product are not being offered any guaranteed/assured returns. Past performance of the portfolio manager does not indicate the future performance for any of the strategies. The names of the portfolios do not in any manner indicate their prospects or return. The investments may not be suited to all categories of investors. Neither Motilal Oswal Asset Management Company Ltd. (MOAMC), nor any person connected with it, accepts any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice. Neither MOAMC, nor any person connected with it, accepts any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice. Opinions, if any, expressed are our opinions as of the date of appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. The portfolio manager is not responsible for any loss or shortfall resulting from the operation of the strategy. Recipient shall understand that the aforementioned statements/presentation cannot disclose all the risks and characteristics. The recipient is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile, and the like and take professional advice before investing. As with any investment in securities, the Value of the portfolio under management may go up or down depending on the various factors and forces affecting the capital market. Disclosure Document shall be obtained and read carefully before executing the PMS agreement and any time thereafter. Prospective investors and others are cautioned that any forward - looking statements are not predictions and may be subject to change without notice. For tax consequences, each investor is advised to consult his / her own professional tax advisor. This document is not for public distribution and has been furnished solely for information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. No part of this material may be duplicated in any form and/or redistributed without MOAMC s prior written consent. Distribution Restrictions - This material should not be circulated in countries where restrictions exist on soliciting business from potential clients residing in such countries. Recipients of this material should inform themselves about and observe any such restrictions. Recipients shall be solely liable for any liability incurred by them in this regard and will indemnify MOAMC for any liability it may incur in this respect. The PMS business has been transferred from MOSL to MOAMC and the certificate of registration has been endorsed by SEBI to MOAMC w.e.f. October 21, 2010 Registered Office: Department Motilal Oswal Asset Management Company Limited Palm Spring Centre, 2nd Floor, Link Road, Malad (West), Mumbai SEBI Certificate of Registration as Portfolio Manager INP CDL00046_40112_010