Bosch Ltd. BUY CMP (Rs.) 20,082 Target (Rs.) 22,083 Potential Upside (%) 10

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1 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16. Volume No.. I Issue No. 65 Bosch Ltd Apr 4 th, 2016 BSE Code: NSE Code: BOSCHLTD Reuters Code: BOSH.NS Bloomberg Code: BOS:IN Readying itself for next leg of growth Bosch Ltd, promoted by Robert Bosch GmbH, is India s leading auto ancillary company. It is a dominant player in the diesel engine segment with ~70% market share. In FY15, Bosch derived 88% & 12% of its turnover from auto & non-auto segment respectively. Investment Rationale Pricing power to remain intact on the back of leadership position & technological excellence: Bosch has a dominant ~70% market share in India for diesel fuel injection products. It is the leading provider of groundbreaking automotive technologies and services. Being a dominant player in fuel injection (FI) segment, FI products contribute ~70% to the company s revenue. Bosch Group (parent) spends ~10% of its turnover every year on R&D. Further, Bosch Group provides most of its technologies at a low royalty rate (1.6% of its turnover) to the Indian arm (Bosch Ltd). Thus, Bosch Ltd, stands to benefit from the technology leadership profile of its parent as implementation of new and advanced technologies pick up ground in India. Hence, pricing power would be maintained given its leadership in technology. Early implementation of stricter emission norms to drive growth ahead: In order to tackle air pollution, the government has announced to upgrade to stricter fuel standards (BS VI) from 2020 (skipping BS V altogether). BS VI was originally proposed to come in by Further, BS IV emission norms would be applicable across India from April Therefore, Bosch emerges as one of the main beneficiaries as it is a key supplier for fuel injection system for vehicles. As per industry estimates, implementation of BS IV on pan-india basis offers ~Rs 5,000 crores opportunity annually. Hence, we expect FI segment to grow at a CAGR of 18.3% over FY15-FY18E. The commitment of government to combat pollution would lead to content increase with common-rail in BS IV (2017) and selective catalytic reduction (SCR) in BS VI (2020). Moreover, major competitors such as Delphi and Denso do not have presence in India with SCR, a key technology for BS VI. Going forward, this would boost realisations for Bosch. Non-Auto business aids in providing revenue diversification: During CY11-FY15, the non-auto business grew at a CAGR of 13.3%. While non-auto business of Bosch Ltd contributes ~12% to the overall revenues, global non-auto business contribution is ~32%. This business has a robust growth potential and is expected to benefit from the pick up in the economic activity. We expect this business to grow at a CAGR of 15.2% over FY15-FY18E. Valuation: Bosch is in a sweet spot given its leadership position, technology focus and unique positioning in the Indian auto industry. We expect revenue and PAT to grow at a CAGR of 4.5% and 11.6% over FY15-FY18E. Further, we rate the stock as BUY assigning a forward P/E of 36.5x (given acceleration in growth trajectory due to advanced emission norms) arriving at a target price of Rs. 22,083 which implies potential upside of ~10% for next 12 months. Market Data Rating One year Price Chart BOSCHLTD NIFTY BUY CMP (Rs.) 20,082 Target (Rs.) 22,083 Potential Upside (%) 10 Duration Long Term Face Value (Rs.) week H/L (Rs.) 26,797/15,736 Adj. all time High (Rs.) 27,990 Decline from 52WH (%) 25.1 Rise from 52WL (%) 27.6 Beta 0.6 Mkt. Cap (Rs.Cr) 63,057 Y/E Fiscal Year Ended Revenue (Rs.Cr) Adj. Profit (Rs.Cr) FY15 (15 months) FY16E FY17E FY18E 12,086 10,705 11,720 13,800 1,366 1,188 1,505 1,900 EPS (Rs.) P/E (x) P/BV (x) ROE (%) Shareholding Pattern Dec-15 Sep-15 Chg. Promoters (%) FII (%) (0.7) DII (%) Others (%)

2 Bosch Ltd is a dominant player in the diesel engine segment with ~70% market share. Bosch Ltd: Dominant player in the fuel injection segment Bosch, promoted by Robert Bosch GmbH (holds 71.18% stake), is India s leading auto ancillary company. It is a dominant player in the diesel engine segment with ~70% market share. The company has a broad-based product portfolio of diesel and gasoline fuel injection systems, automotive aftermarket products, starter motors & generators, special purpose machines, packaging machines, electric power tools, security systems etc. The automotive segment contributes 88% to the overall revenues. The company also has one of the largest distribution network of spare parts in the country, with aftermarket business accounting for ~20% of revenues. Its key manufacturing facilities are located at Bengaluru, Nashik, Naganathapura, Jaipur, Gangaikondan, Goa and Bidadi. Segment-wise Revenue Mix Non-Auto, 12% Automotives Products, 88% Business divisions of Bosch Ltd The Board has approved the sale of its starter motor &generators (SG) division to a 100% subsidiary of its parent for Rs 486 crores. SG constitutes ~10 % of Bosch Ltd turnover and around 1% of Bosch Ltd EBIT. Diesel Systems Gasoline Systems Packaging Technology Power Tools Automotive Starter Motors * Energy & Building Solns. Security Technology Aftermarket & Generators & Thermo-technology Bosch Product Portfolio Business Line Segments Products Target Segment Gasoline Direct gasoline injection PV Gasoline port injection Automotive Non-Automotive Diesel Common rail systems CV, PV, Tractors Electric drives Actuators All Pumps & Valves Electronics Electronic control units All Mechatronic modules Power tools Surveying equipment, Range Finders Construction, Wood & Impact wrenches, Drill Machines Metal working Industrial equipment Metal cutting machines Assembly equipment Industrial Packaging solutions Form, fill & seal machines Pharmaceuticals, Food Security systems Flow wrap machines IP-based CCTV surveillance & Access Control Systems Fire Alarm & Intrusion systems Source: Company, In-house research Source: Company, In-house research; *: Assuming shareholders nod for the sale of SG division Hotels, Metro Rail, Stadium

3 (%) Engine parts constitute ~31% of the total auto ancillary demand. Cyclical recovery in CVs and PVs to drive strong growth During FY11-15, automotive volumes (excluding 2Ws) grew at a CAGR of ~2%. Of late, there has been a visible traction in the CV space (YTD FY16 growth was 9% YoY) aided by growing demand from the infrastructure sector and the opening up of the mining sector. Going forward, with meaningful recovery in overall capex cycle, CV segment in India is expected to grow at a CAGR of ~14-17% over the next two years. With, CVs contributing about 50% to the company s revenues, demand recovery in the CV space coupled with BS-IV compliance on pan-india basis by April 2017 bodes well for the company. Similarly, PV segment is expected to grow at a CAGR of 11-13% over the next two years on the back of new product launches (PV contributes nearly 15% to the overall revenues). While pressure on the tractor segment is likely to continue in the near term, it may improve, going forward. After two consecutive years of poor monsoon, it is predicted that India will receive normal rainfall this year. Besides, government has recently taken several initiatives (crop insurance, enhanced allocation for NREGA in Union Budget) to revive rural growth. Bosch caters to ~40% of Indian auto ancillary industry Electrical Parts, 9% Others, 7% Equipments, 10% Suspension & Braking Parts, 12% Source: ACMA, In-house research Body & Chassis, 12% The government has decided to implement stricter emission norms of Bharat Stage (BS) VI from April 1, 2020, by skipping BS V altogether. Engine Parts, 31% Drive Transmission & Steering Parts, 19% Bosch s revenue growth is in sync with auto industry volumes FY11 FY12 FY13 FY14 FY15 Automotive Industry Volume Growth (%) Bosch Net Sales Growth (%) Early implementation of stricter emission norms to drive growth ahead In order to tackle air pollution, the government has announced to upgrade to stricter fuel standards (BS VI). India will be the first country worldwide to skip one level of emission legislation (BS V). Implementation of the BS V standard was earlier scheduled for BS VI, originally proposed to come in by 2024 has been now advanced to 2020, instead. Further, BS IV emission norms would be applicable across India from April Already, BS-IV is applicable in almost all major cities including Delhi-NCR, Mumbai, Chennai, Kolkata and Hyderabad. Bosch emerges as one of the main beneficiaries as it is a key supplier for fuel injection system for vehicles. Thus, implying incremental revenue opportunity for Bosch Ltd & we expect FI segment to grow at a CAGR of 18.3% over FY15-FY18E. While almost all PVs sold in India are already BS IV compliant, majority of the CVs are still running on BS III standard. Hence, the incremental changes required in CV segment would give an impetus to company s powertrain business. As per industry estimates, implementation of BS IV on pan-india basis offers ~Rs 5,000 crores opportunity annually. Nationwide rollout of BS Emission Norms in India: Timeline Emission Norm Deadline Bharat Stage I 2000 Bharat Stage II 2005 Bharat Stage III 2010 Bharat Stage IV 2017 Bharat Stage V Skipped Bharat Stage VI 2020 Source: Ministry of Road Transport and Highways Source: Company, In-house research

4 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 FY15 (Adj) FY16E FY17E FY18E Historically, it has been seen that whenever advanced emission norms are implemented nation-wide, revenues rose sharply in that particular year. Generally, with each change in the stage of an emission norm, there is an increase in content, leading to Bosch outperforming the industry growth. In CY10, when BS III standard was implemented, Bosch s revenues grew ~40% aided by a sharp recovery post the global financial crisis. Similarly, revenues grew ~25% in CY05 when BS III standard was implemented. Going forward, the government is planning to skip BS V standard by migrating directly to BS VI from BS IV. This move would lead to content increase with common-rail in BS IV (2017) and selective catalytic reduction (SCR) in BS VI (2020). The major competitors such as Delphi and Denso do not have presence in India with SCR, a key technology for BS VI. Further, Bosch sees opportunities in the Indian two-wheeler market as this segment is expected to be covered under BS VI norms. Currently 2Ws in India are carburetor based & they too will be required to shift to fuel injection systems. Implementation of advanced emission norms augur well for Bosch s sales growth BS II Implementation BS III Implementation 40% BS IV Implementation 22% 23% 28% 27% 13% 6% 5% 20% 6% 1% 10% 11% 9% 18% Source: Company, In-house research Bosch Group offers most of its technologies at a low royalty rate (~1.6% of its turnover) to the Indian arm. Pricing power to remain intact on the back of leadership position & technological excellence Bosch has a dominant ~70% market share in India for diesel fuel injection products. It has been the leading provider of groundbreaking automotive technologies and services for over nine decades in India. Being a dominant player in fuel injection (FI) segment, FI products contribute ~70% to the company s revenue. Bosch Ltd enjoys the benefits of its global parent s strong technology dominance and, thereby, has a higher new product acceptance rate among OEMs. Over years, Bosch Ltd has imported newer technologies in the wake of emission changes, which have helped it to cater to the Indian market. Bosch Ltd has generally followed the policy of importing the technology and then gradually localising it as its acceptance increases in the market. The Bosch Group enjoys a strong technological leadership in fuel injection systems and is a trusted ancillary partner for most global auto manufactures. This is on account of the huge R&D spend that is carried out by Bosch Global. In 2014, the Bosch Group spent ~5 billion euros (around 10% of sales revenue) and filed 4,593 patents worldwide. Interestingly, Bosch Group (parent) offers most of its technologies at a low royalty rate (~1.6% of its turnover) to Bosch Ltd. The major competitors of Bosch Global are Delphi & Denso Corp. Both these competitors supply products in segments ranging from fuel injection systems to exhaust systems. However, Bosch Global remains the leader in the space. More importantly, in India, both the competitors have limited penetration. EBITDA margins have remained steady above 15% for all years (except CY13) in the last 5 years. Given its leadership in technology, it is expected that pricing power would be maintained going forward.

5 While non-auto business of Bosch Ltd contributes ~12% to the overall revenues, global nonauto business contribution is ~32%. Non-Auto business aids in providing revenue diversification The revenue contribution of non-auto business to Bosch s topline has risen from 10% in CY11 to 12% in FY15. The non-auto business comprises of three verticals: Industrial Technology, Consumer Goods (Power Tools & Household appliances) and Energy & Building Technology. While non-auto business of Bosch Ltd contributes ~12% to the overall revenues, global non-auto business contribution is ~32%. This business has a strong growth potential and is expected to benefit from the pick up in the economic activity. We expect this business to grow at a CAGR of 15.2% over FY15-FY18E. Structure of Bosch s non-auto business Non-Auto Industrial Technology Consumer Goods Energy & Building Packaging Technology Industrial Equipment Security Technology Bosch Energy & Building Thermotech nology Non-Auto s contribution to the total revenues on the rise 14% 11% 11% 12% 12% 12% 13% 13% 8% 5% CY12 CY13 FY15 FY16E FY17E FY18E Source: Company, In-house research; Note: FY15 is a 15 month period due to change in accounting year Bosch derives about 20% of revenues from the automotive aftermarket division Traction in Automotive aftermarket business augurs well Bosch derives about 20% of revenues from the automotive aftermarket division. This division is responsible for the supply, sales & distribution of all Bosch-branded automotive parts in India and the SAARC region. The product range offered is the largest under one brand in India and finds extensive application in 2Ws, 3Ws, cars, MUVs, LCVs, HCVs, buses, tractors etc. The Bosch automotive aftermarket distribution network is the largest in India, with over 1,000 authorized distributors, over 3,000 authorized workshops and direct distribution reach beyond 60,000 semi-wholesale and retail points with presence in all the key markets. The products marketed by this division include diesel and gasoline fuel injection system & components, alternators, starter motors, spark plugs, automotive filters, automotive batteries, automotive belts, automotive software,2& 3 wheeler clutch plates etc. Besides, it is responsible for Bosch service workshop concepts for vehicle service and maintenance. It manages the largest independent service network in India with over 3,000 workshops/ service network comprising over 500 Bosch Car Service, 1,000 Bosch Diesel Service Centers, 600 Electric Modules, 250 Express Car Service and 150 Express Bike Service in India, covering ~1,200 cities. Hence, we expect this division to grow at a CAGR of 18% over FY15-FY18E led by new products introduction, increased use of electronics coupled with increased preference for authorised services.

6 Rs. Crores (Rs. Crores) Automotive Aftermarket revenues to grow at a CAGR of 18% during FY15-FY18E 3,500 2,500 1, ,323 1,917 1,965 2,024 2,327 2,746 CY12 CY13 FY15 FY16E FY17E FY18E Source: Company, In-house research; Note: FY15 is a 15 month period due to change in accounting year Overall EBITDA margins to expand significantly, going forward Engine parts are impacted the most by emission norm changes. We believe there is significant scope of margin expansion in the coming years led by the implementation of advanced emission norms (BS IV in 2017 & BS VI in 2020) across the country. The stricter norms would lead to content increase with common-rail in BS IV (2017) and SCR in BS VI (2020). Given limited competition in this space, we expect realisations to increase for Bosch. Further, the sale of starter motor & generator division would provide fillip to the overall margins (this division constitutes ~10% of Bosch Ltd turnover and merely 1% of Bosch Ltd EBIT). Thus, we believe Bosch s EBITDA margin to grow to 19.5% in FY18E from 16.4% in FY15. We expect top-line of the company to grow at a CAGR of 4.5% over FY15-FY18E. Revenue and PAT to grow at a CAGR of 4.5% and 11.6% respectively over FY15-18E During FY15-FY18E, we expect the top-line of the company to grow at a CAGR of 4.5% on the back of regulation requirements (BS IV in 2017 & BS VI in 2020) which will lead to greaterthan-normal content increase. Further, we estimate 11.6% CAGR in Adjusted PAT over FY15-18E mainly on account of EBITDA margin expansion. Moreover, we believe that the company would report improvement in its ROE and ROCE on the back of healthy profitability coupled with strong revenue growth. While ROE is likely to improve from 15.2% in FY16E to 18.7% in FY18E, ROCE is projected to increase from 22.6% in FY16E to 27.1% in FY18E. Revenue to grow at a CAGR of 4.5% over FY15-FY18E 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, % 16.5% 11.3% 11.1% 25% 18.5% 19.5% 20% 12.8% 15% 13.8% 10% FY15* FY16E FY17E FY18E Revenue EBITDA Margin (%) Adj. PAT Margin (%) 5% 0% 35% 30% 25% 20% 15% 10% 5% 0% Return Ratios expected to improve 28.9% 27.1% 24.6% 22.6% 20.0% 18.7% 17.0% 15.2% FY15* FY16E FY17E FY18E ROE (%) ROCE (%) Source: Company, In-house research; *: FY15 is a 15 month period due to change in accounting year Key Risks: 1 Slowdown in CV space may affect the revenue growth. 2 Any delay in implementation of advanced emission norms. 3 Upward revision in royalty rates may impact margins.

7 Profit & Loss Account Y/E (Rs.Cr) FY15* FY16E FY17E FY18E Total operating Income 12,086 10,705 11,720 13,800 Raw Material cost 6,457 5,654 6,179 7,169 Employee Cost 1,663 1,375 1,505 1,772 Other operating expenses 1,984 1,906 1,870 2,175 EBITDA 1,981 1,770 2,166 2,685 Depreciation EBIT 1,433 1,372 1,719 2,192 Interest cost Other income Profit before tax 1,984 1,765 2,181 2,753 Tax Profit after tax 1,366 1,188 1,505 1,900 Minority Interests P/L from Associates Adjusted PAT 1,366 1,188 1,505 1,900 E/oincome/ (Expense) (28) Reported Profit 1,338 1,188 1,505 1,900 Cash Flow Statement Y/E (Rs.Cr) FY15* FY16E FY17E FY18E Pretax profit 1,956 1,765 2,181 2,753 Depreciation Chg in Working Capital 132 (224) (130) (257) Others (551) (394) (462) (561) Tax paid (691) (577) (676) (854) Cash flow from operating activities 1, ,360 1,574 Capital expenditure (409) (500) (600) (600) Chg in investments (446) Other investing cashflow (325) Cash flow from investing activities (1,180) (101) (136) (37) Equity raised/(repaid) Debt raised/(repaid) (28) (20) (20) - Dividend paid (202) (280) (339) (406) Other financing activities (9) (5) (2) (2) Cash flow from financing activities (238) (305) (361) (409) Net chg in cash (23) ,129 * Change in accounting year, FY15 is a 15 month period Note: Assuming company to receive shareholders approval for the sale of starter motors & generators division. But, we haven t included any Profit/Loss from the sale of this division. Further, assuming the company to carve out this division by the end of June Balance Sheet Y/E (Rs.Cr) FY15* FY16 FY17E FY18E Paid up capital Reserves and Surplus 7,316 8,224 9,390 10,883 Net worth 7,347 8,256 9,421 10,915 Minority Interest Total Debt Other non-current liabilities Total Liabilities 7,881 8,817 10,015 11,567 Total fixed assets (inc CWIP) 1,244 1,345 1,497 1,605 Goodwill Investments 2,890 2,890 2,890 2,890 Net Current assets Other non-current assets 3,112 3,925 4,946 6, Total Assets 7,881 8,817 10,015 11,567 Key Ratios Y/E FY15* FY16E FY7E FY18E Valuation (x) P/E EV/EBITDA EV/Net Sales P/B Per share data (Rs.) EPS DPS BVPS 2, , , ,476.0 Growth (%) Net Sales 37.9 (11.3) EBITDA 53.7 (10.7) Net Profit 54.4 (13.0) Operating Ratios (%) EBITDA Margin EBIT Margin PAT Margin Return Ratios (%) RoE RoCE Turnover Ratios (x) Net Sales/GFA Sales/Total Assets Sales/Working Capital Liquidity&Solvency Ratios (x) Current Ratio Net Debt/Equity (0.3) (0.3) (0.4) (0.4)

8 Rating Criteria Large Cap. Return Mid/Small Cap. Return Buy More than equal to 10% Buy More than equal to 15% Hold Upside or downside is less than 10% Accumulate* Upside between 10% & 15% Reduce Less than equal to -10% Hold Between 0% & 10% Reduce/sell Less than 0%. * To satisfy regulatory requirements, we attribute Accumulate as Buy and Reduce as Sell. Disclaimer: The SEBI registration number is INH The analyst for this report certifies that all the views expressed in this report accurately reflect his / her personal views about the subject company or companies, and its / their securities. No part of his / her compensation was / is / will be, directly / indirectly related to specific recommendations or views expressed in this report. This material is for the personal information of the authorized recipient, and no action is solicited on the basis of this. It is not to be construed as an offer to sell, or the solicitation of an offer to buy any security, in any jurisdiction, where such an offer or solicitation would be illegal. We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable, though its accuracy or completeness cannot be guaranteed. Neither Wealth India Financial Services Pvt. Ltd., nor any person connected with it, accepts any liability arising from the use of this document. The recipients of this material should rely on their own investigations and take their own professional advice. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. We and our affiliates, officers, directors, and employees worldwide: 1. Do not have any financial interest in the subject company / companies in this report; 2. Do not have any actual / beneficial ownership of one per cent or more in the company / companies mentioned in this document, or in its securities at the end of the month immediately preceding the date of publication of the research report, or the date of public appearance; 3. Do not have any other material conflict of interest at the time of publication of the research report, or at the time of public appearance; 4. Have not received any compensation from the subject company / companies in the past 12 months; 5. Have not managed or co-managed the public offering of securities for the subject company / companies in the past 12 months; 6. Have not received any compensation for investment banking, or merchant banking, or brokerage services from the subject company / companies in the past 12 months; 7. Have not served as an officer, director, or employee of the subject company; 8. Have not been engaged in market making activity for the subject company; This document is not for public distribution. It has been furnished to you solely for your information, and must not be reproduced or redistributed to any other person. Contact Us: Funds India Uttam Building, Third Floor No. 38 & 39 Whites Road Royapettah Chennai T: contact@fundsindia.com

9 Dion s Disclosure and Disclaimer I, Rohit Joshi, employee of Dion Global Solutions Limited (Dion) is engaged in preparation of this report and hereby certify that all the views expressed in this research report (report) reflect my personal views about any or all of the subject issuer or securities. Disclaimer This report has been prepared by Dion and the report & its contents are the exclusive property of the Dion and the client cannot tamper with the report or its contents in any manner and the said report, shall in no case, be further distributed to any third party for commercial use, with or without consideration. Recipient shall not further distribute the report to a third party for a commercial consideration as this report is being furnished to the recipient solely for the purpose of information. Dion has taken steps to ensure that facts in this report are based on reliable information but cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this report. It is hereby confirmed that wherever Dion has employed a rating system in this report, the rating system has been clearly defined including the time horizon and benchmarks on which the rating is based. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this report is not, and should not be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments. Dion has not taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. This report is not to be relied upon in substitution for the exercise of independent judgment. Opinions or estimates expressed are current opinions as of the original publication date appearing on this report and the information, including the opinions and estimates contained herein, are subject to change without notice. Dion is under no duty to update this report from time to time. Dion or its associates including employees engaged in preparation of this report and its directors do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis of this report, including but not restricted to, fluctuation in the prices of securities, changes in the currency rates, diminution in the NAVs, reduction in the dividend or income, etc. The investments or services contained or referred to in this report may not be suitable for all equally and it is recommended that an independent investment advisor be consulted. In addition, nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to individual circumstances or otherwise constitutes a personal recommendation of Dion. REGULATORY DISCLOSURES: Dion is engaged in the business of developing software solutions for the global financial services industry across the entire transaction lifecycle and inter-alia provides research and information services essential for business intelligence to global companies and financial institutions. Dion is listed on BSE Limited (BSE) and is also registered under the SEBI (Research Analyst) Regulations, 2014 (SEBI Regulations) as a Research Analyst vide Registration No. INH Dion s activities were neither suspended nor has it defaulted with requirements under the Listing Agreement and / or SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with the BSE in the last five years. Dion has not been debarred from doing business by BSE / SEBI or any other authority. In the context of the SEBI Regulations, we affirm that we are a SEBI registered Research Analyst and in the course of our business, we issue research reports /research analysis etc that are prepared by our Research Analysts. We also affirm and undertake that no disciplinary action has been taken against us or our Analysts in connection with our business activities. In compliance with the above mentioned SEBI Regulations, the following additional disclosures are also provided which may be considered by the reader before making an investment decision:

10 1. Disclosures regarding Ownership Dion confirms that: (i) Dion/its associates have no financial interest or any other material conflict in relation to the subject company (ies) covered herein at the time of publication of this report. (ii) It/its associates have no actual / beneficial ownership of 1% or more securities of the subject company (ies) covered herein at the end of the month immediately preceding the date of publication of this report. Further, the Research Analyst confirms that: (i) He, his associates and his relatives have no financial interest in the subject company (ies) covered herein, and they have no other material conflict in the subject company at the time of publication of this report. (ii) he, his associates and his relatives have no actual/beneficial ownership of 1% or more securities of the subject company (ies) covered herein at the end of the month immediately preceding the date of publication of this report. 2. Disclosures regarding Compensation: During the past 12 months, Dion or its Associates: (a) Have not managed or co-managed public offering of securities for the subject company (b) Have not received any compensation for investment banking or merchant banking or brokerage services from the subject company (c) Have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject. (d) Have not received any compensation or other benefits from the subject company or third party in connection with this report 3. Disclosure regarding the Research Analyst s connection with the subject company: It is affirmed that I, Rohit Joshi employed as Research Analyst by Dion and engaged in the preparation of this report have not served as an officer, director or employee of the subject company 4. Disclosure regarding Market Making activity: Neither Dion /its Research Analysts have engaged in market making activities for the subject company. Copyright in this report vests exclusively with Dion. Dion Global Solutions Limited, Registered Office: 54, Janpath, New Delhi , India. CIN: L74899DL1994PLC058032, Website: Scrip code with BSE: SEBI Registration No. INH Compliance Officer Details: Ms. Rinki Batra, Tel.: , Fax No or rinki.batra@dionglobal.com