Index Methodology. December About the Index

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1 ITE Shariah Mid Cap 51 Index Methodology Islami Tijara December 2010 ITE Shariah Size-segment Indices ITE Shariah-35 ITE Shariah Mid Cap-51 ITE Shariah Small Cap-81 ITE Shariah-111 ITE Shariah-251 About the Index Introduced in 2009, By Islami Tijara, the ITE Shariah Mid Cap 51 provides investors with a benchmark for mid-sized companies. Today, mid caps are being recognized as an independent asset class, with risk/ reward profiles that differ considerably from both large caps and small caps. The medium capitalized segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. The primary objective of the ITE Shariah 51 Mid Cap is to capture the movement and be a benchmark of the midcap segment of the market The ITE Shariah Mid Cap 51 provides investors with a benchmark for mid-sized companies. ITE Shariah Sector Indices ITE Shariah Automobiles ITE Shariah Construction & Realty ITE Shariah Consumer ITE Shariah Healthcare ITE Shariah Industrials & Capital Goods ITE Shariah Information Technology ITE Shariah Metals & Mining ITE Shariah Oil & Gas ITE Shariah Power & Utilities Contact Us contact@islamitijara.com Mumbai: For more information about ITE Shariah Indices, visit our Web site: Index Universe The ITE Shariah Mid Cap 51 Index comprises of 51 most liquid and investible stocks, identified by Islami Tijara. The Mid Cap index contains 51 stocks and is a sub-set of the ITE Shariah Mid Cap universe, and subsequently the ITE Shariah 251 index. The ITE Shariah Mid Cap 51 index contains of 51 stocks and is a sub-set of the ITE Shariah Mid-cap universe, and subsequently the ITE Shariah 251 index. The ITE Shariah 251 index represents 94% of the total ITE Shariah Compliant Universe. The Mid-cap universe includes stocks with Full Float Market Capitalisation of less than Rs. 16,000 crores and Rs. 4,000 crores or more. Islami Tijara introduced ITE Midcap index to track the performance of companies which are under Tier II market capitalization. ITE Mid-cap index includes companies which are not necessarily the market leaders but are key representative of their respective industries. These companies are well researched and a compliment to the Industry leaders. These next rung of liquid securities after ITE-35 Index are the ITE Mid-cap Index companies. It may be useful to think of the ITE-35 and the ITE-Mid cap indices make up to the 86 most liquid stocks in India. The Free Float closing Average Market cap of ITE Mid-cap stocks as of 31 December 2010 is Rs. 1,958 billion (Rs lakh Crores ) Methodology: Free Float Base Date: 01 Jan 2003 Base Value: 1000

2 Islami Tijara ITE Shariah Mid Cap 51 The Index includes companies, not necessarily market leaders in their respective industries, but important enough to be a part of the industry, except for companies from relatively smaller industries in India e.g. the Hospitality industry. The maintenance of the ITE-35 and ITE-Mid cap indices is well synchronized and both indices are containing unique stocks respectively. Market Segmentation: Pragmatic Wealth Management (PWM) has segmented the entire listed universe of companies into various Size-segments based on percentage of market capitalisation coverage. The listed universe of companies is categorised under Large Cap, Mid Cap, Small Cap, and Micro Cap segments based on 70%-15%-10%-5% Market Capitalization coverage respectively. Mid Cap Universe comprises the 15% of the total listed universe Full Float Market Capitalisation. Each of the stock in the Mid Cap Universe is qualified for a place in the ITE Shariah Mid Cap 51 Index, if it fulfils the following conditions: Turnover Multiple is 0.25 or more Volume Multiple is 0.25 or more Free Float factor is 0.10 or more Free Float Market Cap is at least Rs.2,000 crores Company Weight: The weight of single stock in ITE Shariah Mid Cap 51 Index, based on three-month average Free-Float market capitalization, should be at least 0.5% and should not exceed 5%. One exception can be considered for companies with weight higher than 5% and is on the discretion of the Pragmatic Wealth Management s (PWM) Index Research Group (IRG). Sector/Industry Representation Stock selection takes into account a balanced representation of all the ITE Sectors within the ITE Compliant Universe. The Company (stock) selected is generally a representative of the respective Industry and subsequently the sector. However, the Index also includes companies, not necessarily market leaders in their respective industries, but important enough to be a part of the industry, except for companies from relatively mid-size industries in India e.g. the Hospitality industry. The weight of one sector should not exceed 25%. One exception can be considered for companies with weight higher than 15% and is on the discretion of the Pragmatic Wealth Management s (PWM) Index Research Group (IRG). Listed Record The stocks selected on this Index have a listing record of at least 3 months. In case, a company is listed on account of a merger, demerger or amalgamation, the minimum listing record criteria is not applicable. Trading Frequency The criteria for trading frequency for the stocks selected on this Index, is that of at least 90% in the last three months. Exceptions are made for extreme reasons i.e. stock suspension etc. Corporate Governance Companies that have not been consistently submitting annual results for last two financial years (from the date of index review) will not be considered for index inclusions. In the opinion of the ITE Index research group, the company should have top of the line corporate governance and disclosure policies. Free-Float ITE Shariah Indices are based on Free-Float methodology, and companies eligible for inclusion in the ITE Index, should have a floating stock of at least 10%. For this purpose, free float are those shares that are readily available for trading and which are not a held by the promoters and related entities, and stocks that are not available in the market for trading.

3 Islami Tijara ITE Shariah Mid Cap 51 Liquidity and Reasonable Price: The Company should have traded for at least 90 percent of the trading days in the previous six month to the review date. The Turnover Multiple and Volume Multiple (for the stock) each have to be at least Financial Viability Companies that have not been consistently reporting EBITDA for last four quarters will not be considered for index inclusions. EBITDA is Earnings before depreciation & amortization, interest and tax. The company should also have a positive net worth. Initial Public Offering (IPO) IPO s will be available for inclusion in the index only after four months of seasoned performance from the listing date. Post four months, the companies will be eligible for index inclusions, if they fulfill the above first three eligibility criteria i.e. Liquidity, Corporate Governance, and Floating stock. Eligible Securities Eligible securities include all Indian stocks listed on the BSE and the NSE capital markets. Exclusivity Stocks which form part of ITE Shariah 35 are excluded Domicile: The Company must be domiciled in India and trade on the Indian Stock Exchanges. Timing of Index Review The ITE Shariah Mid Cap 51 index is reviewed every quarter and the list of additions and deletions is made available on the website ( 2 week in advance. Inclusions: At the time of Index Review, the ITE 211 list of stocks is sorted in descending order of Float-adjusted market capitalisation. Top 51 companies are selected based on the threshold mid cap market cap criteria (or the Mid Cap universe), and other criteria such as minimum float, Sector / Industry leadership, liquidity, and corporate governance. Exclusions: All exclusions from the parent index i.e. the ITE Shariah 211 will result in exclusions from each of the respective ITE Shariah Indices on the same day. Inclusions and Exclusions from indices which occur due to quarterly reviews by the IRG and changes in compliance status will be done by 10th day of the next month, post end of each quarter. Calculation Frequency The ITE Shariah Mid Cap 51 index is backtracked since 2006 to 2009, and from 01 Sept 2009 the index is being calculated realtime on all trading days. Corporate Actions & Share Adjustments Maintaining the ITE Shariah indexes includes monitoring and completing the adjustments for company additions and deletions, share changes, stock splits, stock dividends, and stock price adjustments due to restructurings or spin-offs. Some corporate actions, such as stock splits and stock dividends, require simple changes in the common shares outstanding and the stock prices of the companies in the index. Other corporate actions, such as share issuances change the market value of an index and require an index divisor adjustment to prevent the value of the index from changing. The index divisor is adjusted for float changes (more than 5%) and other corporate actions such as mergers and demergers. This helps keep the value of the index accurate as a barometer of stock market performance, and ensures that the movement of the index does not reflect the corporate actions of the companies in it. Divisor adjustments are made post close of trading and after the calculation of the closing value of the index. Corporate actions such as splits, stock dividends, spin-offs, rights offerings, and share changes are applied on the ex-date.

4 Top 5 Companies by Weight Company Name ITE Sector Free float factor % Float Adjusted Market Cap (Rs. Millions) Stock Weight Exide Industries Automobiles , % Cummins India Industrials & Capital Goods , % Tata Chemicals Industrials & Capital Goods , % Torrent Power Power & Utilities , % Colgate-Palmolive Consumer , % Free Float Market Cap Analysis Free Float Market Cap Oil & Gas 4% Power & Utilities 7% Automobiles 12% Metals & Mining 2% Information Technology 12% Construction & Realty 2% Industrials & Capital Goods 23% Healthcare 18% Consumer 20% ITE Shariah Mid Cap 51 Index Characteristics Number of Companies 51 Free Float Market Cap (Rs. Millions) 1,958, % Weight of Largest Company 3.91% % Weight of Smallest Company 0.91% % Weight of Largest Sector-Industrials & Capital Goods 22.77% % Weight of Smallest Sector-Metals & Mining 1.39% *Free Float Market Cap is as of 31 Dec 2010

5 Returns Analysis Returns 1 Month 6.14% 3 Month 0.84% YTD 15.44% Annualized 1 year 29.18% 3 years 27.35% Beta - BSE Midcap Index** 0.63 Beta - CNX Midcap** 0.62 **Beta is calculated for three months ending Dec 2010 All Rights Reserved, Pragmatic Wealth Management Pvt. Ltd.