The document appears to be an agenda for a meeting on the Indian financial market and IL&FS Investsmart. The agenda includes sections on an overview of the Indian financial market, a company overview of IL&FS Investsmart, their business strategy, and highlights. Some key points include that IL&FS Investsmart has a network of 259 outlets across India, total income of Rs. 2170 million in FY06, and is promoting growth through expanding its product offerings and branch network.

1. November 2006

2. Agenda
Indian Financial Market Overview
Company Overview
Business Strategy
Highlights
2

3. 3



0
50000
100000
150000
200000
250000
300000
350000
Apr-05 120516


May-05 130146
Jun-05 169857
Jul-05 184882
Aug-05 221636
Sep-05 226661
Oct-05 179890
Nov-05 162253
Dec-05 227238
Jan-06 228734
Rising Markets Driven by :
Feb-06 205424
Increased retail participation
Continued Surge in FII flows
believe, the best is yet to come !!!
Mar-06
328126
Apr-06 264827
Robust CM Market Growth
May-06
297213
Jun-06 223048
Jul-06 173385
capital markets are concerned, and of course we
Increased primary mobilisation by Mutual Funds
(Rs. in cr)
Aug-06
193871
Just to sum it up, India has had a dream year as far as
Market Summary
Primary market issuances continue to attract heavy flows
0
2000
4000
6000
8000
10000
12000
14000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Apr-05 6154
Apr.05 195,962
May-05 6715
May.05 208,375
Jun-05 7194
Jun.05 271,242
Indian Capital & Financial
Jul-05 7635
Jul.05 308,160
Aug-05 7805
Aug.05 372,301
Sep-05 8634
Sep.05 399,750
Oct-05 7892
Oct.05 433,651
Nov-05 8789
Nov.05 395,845
Dec-05 9398
Dec.05 523,803
Jan-06 9920
Jan.06 487,580
Feb-06 10370
Feb.06 492,664
Mar-06 11280
Mar.06
734,842 Apr-06
Apr.06 12043
737,832 May-06
May.06 10399
Surge in F&O Market Volumes
742,390 Jun-06 10609
Jun.06
SENSEX – Hitting the all time high
556,797 Jul-06 10744
Jul.06
477,255
Aug-06 11699
Aug.06
(Rs. in cr)
469,665 Sep-06
12454

4. Indian Capital & Financial
Market Summary 12
FII Investments
10.7
9.6
10
8.1
8 6.8
6
4 3
2 0.8
0
CY 2001 CY 2002 CY 2003 CY 2004 CY 2005 CY 2006
Mutual Fund Industry
60 52
50
40 32
23.1
30
18.2
20
10
0
FY 02-03 FY 03-04 FY 04-05 FY 05-06
Source: AMFI
4

5. Agenda
Indian Financial Market Overview
Company Overview
Business Strategy
Highlights
5

6. IL&FS Investsmart
An Introduction
• One of the leading financial services companies in India
– Focused on retail broking (including margin financing), distribution of financial products and IPO
financing
– Significant growing presence in Merchant Banking, & Institutional Brokerage Businesses
• Pan India presence with a network of 259 outlets (including business associates) spread
across 124 major cities in India
• Total Income in FY 06 of Rs. 2170 mn. and net profit of Rs. 691 mn.
Shareholding Pattern
IL&FS
FIIs & Public
30%
33%
SAIF
10%
E*TRADE
27%
6

7. Promoter History -
IL&FS
 Promoted by Infrastructure Leasing and Financial Services Ltd
 Shareholders of IL&FS include SBI, ORIX-Japan, IFC-Washington, Credit Commercial de
France, Indivest Pte Ltd(an Affiliate of Govt. of Singapore)
 Business operations of the promoter
 Infrastructure and Development Services : Sectors such as Surface Transport and
Transportation Systems,Water Supply, Hydro Power, Special Economic Zone, Port and
Environment & Social Management Group.
 Investment Banking : Strategy, Asset Financing, Corporate Advisory, Capital Markets, Project
Financing
 Made contributions to the following trusts: IL&FS Infrastructure Equity Fund, IL&FS Investment
Trust –I, II, IV
 The Indian Innovation Award-2005: Awarded to IL&FS by President of India
7

8. Strategic
Partner
• E*TRADE
– Pioneer in the field of Internet Broking
– Global Leader
– Covers 3.5 million customers and 2.7 million households worldwide
– Presence in over 12 countries
– Superior Technology Platform
Delivering a diversified and integrated portfolio of innovative, customer-focused brokerage and
banking products and services to Retail, Corporate and Institutional Clients
8

9. Product
Portfolio
Distribution of Financial Products Investment Banking
Portfolio Management Loan Syndication
IIL
Institutional Business Retail Broking
Commodity Trading Online Trading
Insurance Broking
9

10.  Acquired Apeejay
Key Milestones Securities
 Completed business
restructuring
 ETM as Strategic  Received the Best
Investor and SAIF Performing National
 Commenced equity as financial Financial Advisor
 Merchant Banking
broking on BSE partner Award for 2006 by
and Debt on Net
CNBC
 ORIX & K Raheja merges with IIL  Commenced
joined as new commodity  Crossed over 250
shareholders broking retail outlets
spanning 125
Indian cities
1998–99 2000-2001 2003–2004 2005-2006
1999-2000 2001-2002 2004-2005 2006-2007
 First full year of  Commenced  Acquired 4  Completed IPO
equity broking on NSE derivative broking on branches of Tata TD
NSE Waterhouse  Completed GDR
 Commenced retail
operations at  Launched investment  Acquired Insurance  Strategic
Bangalore, Chennai & advisory products Training Business investment in ESOP
Kolkata Direct
 Registered as
Portfolio Manager
10

11. Business Model
Universal Broker
Products
Client Category
Portfolio Management Services
Investment Counseling
HNI/MNI
Mass Affluent
Portfolio Advisory
Retired Individuals
Transaction and
Corporate
Distribution Products
Transaction and
Retail
Distribution Products
IIL uses the above Model to acquire and service clients
11

12. Our Retail
Offerings
 Full Service offering across asset class
Equities Investment Advisory
Derivatives Portfolio Management
IIL
Distribution of Financial
Commodities
Products
Depository Services Training Services
Insurance Broking
A Complete suite of products, offering wholesome investment Solutions
12

13. Achievements
Chosen as
The Best Performing
National Financial
Advisor – Retail Segment
at the CNBC TV 18
National Financial
Advisor Award 2006
13

14. Product Offering
Institutional Business
Investment
Banking
Institutional Equity
IIL Institutional Debt
Broking
Institutional Business
IIL has a significant growing presence in the institutional capital markets in India
14

15. Investment Banking
Performance Parameters
 Raised over Rs 14 bn from capital market through IPOs and follow-on offerings
 Mobilised around 1 mn IPO applications
 Acted as Advisors to 9 ESOP mandates
 Executed transactions across a spectrum of industries including Logistics, Auto
Ancillary, Construction, Food Processing, Media, Software, Paper, Textiles, Steel, Sugars
and Shipping to name a few.
 Ranked 5th in the league of Investment Bankers in No. of Book Built IPO’s executed for
the year
 Product reach extended with successful completion of a few M&A transactions, GDR
advisory mandates and Private Equity transactions
15

16. Investment Banking
Execution Capabilities
Initial public
Offerings
ESOP
Buybacks
Certifications
Management
of
Private Equity
Rights Issues
Syndications
Advisory
Assignments
16

17. Institutional Equity
Performance Parameters
 Improved Performance : Recorded a total income of Rs 139.28 mn in the current financial
year compared to Rs 85.51 mn in 2004-05, a growth of 63%
 Empanelments with more than 100 institutions including banks, mutual funds, FII’s and
corporate treasuries. 32 new empanelments, strong traction seen
 4 member sales team and 7 member sales trader team to cater to institutional clients with
one dedicated team member for US, UK and South East Asia Market
 Local office at Singapore
 Set-up derivatives desk for Institutional Clients
 Research team of 15 with a coverage of about 150 stocks
17

18. Management Team
Name Age Position Brief Profile
Mr R. C. Bawa 52 Managing Director &  Served as Deputy MD since August 2003
CEO  Has more than 20 years of experience in Indian Banking Sector
 Holds a Masters degree in Arts and post graduate diploma in Personal Management and
Industrial Relationship
Mr Sandeep 39 Chief Operating Officer  Served as COO since October 1999
Presswala  Has over 14 years of experience in Capital Markets
 Holds a Bachelors Degree in Commerce from Bombay University and is a Chartered
Accountant
Mr Sachin Joshi 40 Chief Financial Officer  Served as CFO since October 1999
 Has over 16 years of Financial Management experience
 Holds a Bachelors degree in Commerce and is a LLB(Gen), Chartered Accountant and
Cost and Works Accountants
Mr Girish 37 Chief Operating Officer  Has over 15 years of industry experience in financial services
Nadkarni  Holds a PGDM from IIM-A, Bachelors in Commerce from Mumbai University and is a Cost
and Works Accountant
18

19. Agenda
Indian Financial Market Overview
Company Overview
Business Strategy
Highlights
19

20. Business Strategy
OBJECTIVES STRATEGIES
 Grow branch and franchisee network across India
- Expand into smaller cities with significant untapped potential
 Establish alliance with banks to increase market presence
Grow Retail Business
 Launch and grow on-line trading capabilities
 Grow existing product lines like wealth management & securities related
financing
Sustainable Growth Drivers
 Expand into related financial services such as commodities broking and
financing services and insurance brokerage
Capitalize on New
- Established a subsidiary with membership of NCDEX & MCX
Business Opportunities
- Obtained a brokerage license to distribute insurance products of third
party insurers
Grow Institutional Brokerage  Increase institutional relationship backed by enhanced research capabilities
and Merchant Banking  Harness mid-market segment witnessing robust growth
 Plan to establish offices in key overseas markets, such as Singapore, Hong
Targeted Presence in Key Kong, Dubai, London and New York
Overseas Markets  Target growth opportunities for institutional brokering, private equity,
syndication and NRI wealth management
20
Capitalize on acquisition opportunities in Indian Markets

21. Growth
Plan
Several measures planned to sustain the growth engine
 Complete business restructuring
 Increase Margin Portfolio book to Rs. 7.5 bn
 Accelerate branch expansion through setup of mini branches
 Reach an AUM of Rs. 20 bn in MF assets
 Scout for acquisitions
 Strong focus on building new businesses : commodities, online trading
 Launch international operations in Singapore. Complete Dubai approvals
 Improve internal efficiencies : performance monitoring, operations support, development of
integrated middle office trading system
 Consolidate in the niche position in mid market corporate segment and graduate to large
sized deals
 Exploit cross – selling opportunities
 Deepen the focus on research and corporate relationships to grow institutional business
21

22. Network
Expansion
Accelerated expansion through mini branches
and select franchisees planned
 Rapid branch expansion on a smaller format (mini branches) planned in Mumbai, Delhi
and Tier II cities
 Existing franchisee relationships to be developed, growth from new franchisees to be
selective
Current Additional Proposed Total
Branches 55 90 145
Franchisees 157 70 227
22

23. Agenda
Indian Financial Market Overview
Company Overview
Business Strategy
Highlights
23

24. Highlights
Robust Capital Market Outlook
Established Presence -
Attractive Play on the Indian Securities Market
Full service Investment Bank
with strong retail focus
Highlights Diversified Revenue Stream
Strong Brand, Credibility and Innovative
Product Offerings
Strategic Investors With Access to Resources, Markets
and Investors
Strong Risk Management and
Experienced and stable Management Team
24