MIRA INFORM REPORT

Report Date :

12.07.2011

IDENTIFICATION DETAILS

Name :	BIRLA SUN LIFE ASSET MANAGEMENT COMPANY LIMITED
Registered Office :	One India Bulls Tower 1, 17^th Floor, Jupiter Mills, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.09.1994
Com. Reg. No.:	11-80811
Capital Investment / Paid-up Capital :	Rs.180.000 millions
CIN No.: [Company Identification No.]	U65991MH1994PLC080811
Legal Form :	A closely held public limited liability company
Line of Business :	Providing Fund Management and Advisory Service.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 5600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture between Aditya Birla Group and the Sun Life Financial Services Inc. of Canada. It is a well established and reputed company having fine track. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Name :	Mr. Parab Joglekar
Designation :	Accounts Manager
Date :	08.07.2011

LOCATIONS

Registered Office :	One India Bulls Tower 1, 17^th Floor, Jupiter Mills, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013, Maharashtra, India
Tel. No.:	91-22-43568000 Toll Free - 1-800-270-7000 Toll Free (MTNL/BSNL) - 1-800-22-7000
E-Mail :	connect@birlasunlife.com
Website :	http://mutualfund.birlasunlife.com

DIRECTORS

As on 31.03.2010

Name :	Mr. Prafull Anubhai
Designation :	Independent Director
Date of Birth/Age :	72 years
Qualification :	B.Com, B.Sc.(Econ.) from London School of Economics
Name :	Mr. Gurcharan Das
Designation :	Independent Director
Date of Birth/Age :	66 Years
Qualification :	Graduated with honors from Harvard University and later attended Harvard Business School (AMP)
Name :	Dr. V. Arunachalam
Designation :	Independent Director
Date of Birth/Age :	74 Years
Qualification :	M.SC., PhD (Wales), D. Eng. (HC), D.Sc. (HC), FR Eng. (U.K,), F.N.A.E., F.N.A., F.A.Sc.
Name :	Mr. Suresh Talwar
Designation :	Associate Director
Date of Birth/Age :	72 Years
Qualification :	B.Com., LL.B., Solicitor and Advocate
Name :	Mr. B. N. Puranmalka
Designation :	Associate Director
Date of Birth/Age :	74 Years
Qualification :	F.C.A., F.C.S., LL.B.

KEY EXECUTIVES

Name :	Mr. A Balasubramanian
Designation :	Chief Executive Officer
Experience :	More than 17 Years
Name :	Mr. Navin Tewari
Designation :	Head-Sales and Customer Engagement
Experience :	14 Years
Name :	Mr. Sarb Preet Singh
Designation :	Head Institutional Sales
Experience :	17 Years
Name :	Mr. Ashok Suvarna
Designation :	Chief Operating Officer
Experience :	16 Years
Name :	Mr. Manoj Kumar Gandhi
Designation :	Head Finance and Strategy
Qualification :	Chartered Accountant and MBA
Experience :	12 Years
Name :	Ms. Rama Vasantharajan
Designation :	Head-Compliance & Risk Management
Experience :	20 Years
Name :	Mr. Rajesh Srivastava
Designation :	Head Human Resources
Experience :	10 Years
Name :	Mr. Rahul Parikh
Designation :	Head Business Development
Experience :	11 Years
Name :	Ms. Molly Kapoor
Designation :	Head Customer Service
Name :	Mr. Bhavdeep Bhatt
Designation :	Head Products
Experience :	13 Years
Name :	Mr. Rajiv Joshi
Designation :	Head - Legal, Compliance and Secretarial
Experience :	19 Years
Name :	Mr. Thrivikram Iyer
Designation :	Head Risk Management
Qualification :	Chartered Accountant and a Certified Management Accountant
Experience :	13 Years
Name :	Mr. Maneesh Dangi
Designation :	Head – Fixed Income
Name :	Mr. Mahesh Patil
Designation :	Head Equity -  Domestic Assets
Experience :	20 Years
Name :	Mr. Satyabrata Mohanty
Designation :	Head - Mixed Assets
Experience :	12 Years
Name :	Mr. Ajay Argal
Designation :	Head Equity – Offshore
Experience :	17 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Not Available

BUSINESS DETAILS

Line of Business :

Providing Fund Management and Advisory Service.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Not Available

Facilities :

Inter Corporate Deposits	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
ICD – Dahej Harbour and Infrastructure Limited	250.000	0.000
ICD – Ultratech Cement Limited	100.000	0.000
Total	350.000	0.000

Banking Relations :	--
Auditors :
Name :	Haribhakti and Company Chartered Accountant
Address 1 :	42, Free Press House, 215, Nariman Point, Mumbai - 400 021, Maharashtra, India
Tel. No.:	91-22-61326999
Fax No.:	91-22-22856237
Address 2 :	701, Leela Business Park, Andheri Kurla Road, Andheri (East), Mumbai - 400 059, Maharashtra, India
Tel. No.:	91-22-66729999
Fax No.:	91-22-66729777
Website :	www.bdoindia.co.in
Subsidiaries :	· India Advantage Fund Limited · Birla Sun Life AMC (Mauritius) Limited
Group Companies :	· Sun Life (India) AMC Investments Inc; Canada · Birla Global Finance Limited (since merged with Aditya Birla Nuvo Limited.) · Aditva Birla Nuvo Limited · Birla Sun Life Insurance Company Limited · Birla Sun Life Trustee Company Private Limited · Aditva Birla Monev Mart Limited · Aditya Birla Capital Limited · Aditva Birla Finance Limited · Aditya Birla Money Limited · Aditya Birla Financial Shared Services Limited · Aditya Birla Financial Services Private Limited · Aditya Birla Minacs Worldwide Limited · Aditya Birla Minacs IT Services Limited · Birla Insurance Advisory and Broking Services Limited · Birla Global Asset Finance Company Limited · Birla Sun Life Insurance Advisory Services Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs.180.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		180.000	180.000	180.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1225.264	740.785	662.129
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1405.264	920.785	842.129
LOAN FUNDS
Inter Corporate Deposits		350.000	0.000	0.000
TOTAL BORROWING		350.000	0.000	0.000
DEFERRED TAX LIABILITIES		9.590	35.210	49.597
TOTAL		1764.854	955.995	891.726
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		484.410	541.580	472.231
Capital work-in-progress		0.343	22.504	2.308
Capital Advance		0.000	0.228	0.630
INVESTMENT		676.895	173.776	378.135
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	161.339	43.881	127.484
	Cash & Bank Balances	32.168	85.301	39.360
	Other Current Assets	38.378	0.029	0.000
	Loans & Advances	1640.248	890.311	757.067
Total Current Assets		1872.133	1019.522	923.911
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1219.238	708.569	690.567
	Other Current Liabilities	39.668	81.018	181.700
	Provisions	10.021	12.028	13.222
Total Current Liabilities		1268.927	801.615	885.489
Net Current Assets		603.206	217.907	38.422
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1764.854	955.995	891.726

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Management and Advisory Fees	2835.231	1732.100	1177.720
		Portfolio Management Fees	91.748	46.866	14.790
		Investment Income	69.752	88.884	147.676
		Other Income	134.410	87.180	9.721
		TOTAL (A)	3131.141	1955.030	1349.907
Less	EXPENSES
		Personnel Cost	807.623	759.567	417.306
		Administrative and Other Expenses	633.145	521.876	309.548
		Scheme Expenses	775.517	395.577	501.278
		TOTAL (B)	2216.285	1677.020	1228.132
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		914.856	278.010	121.775
Less	FINANCIAL EXPENSES (D)		41.707	0.654	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		873.149	277.356	121.775
Less/ Add	DEPRECIATION/ AMORTISATION (F)		147.089	116.233	77.472
	PROFIT BEFORE TAX (E-F) (G)		726.060	161.123	44.303
Less	TAX (H)		241.581	68.392	16.556
	PROFIT AFTER TAX (G-H) (I)		484.479	92.731	27.747
	Short Provision for Tax of earlier years		0.000	14.076	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		645.695	567.040	539.293
	BALANCE CARRIED TO THE B/S		1130.174	645.695	567.040
	EARNINGS IN FOREIGN CURRENCY (ON ACCRUAL BASIS)
		Management and Advisory Fees	65.520	54.096	56.221
		Dividend	57.922	67.592	110.624
	TOTAL EARNINGS		123.442	121.688	166.845
	Earnings Per Share (Rs.)		26.92	5.15	1.54

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	15.47	4.74	2.06
Net Profit Margin (PBT/Sales)	(%)	24.23	8.63	3.31
Return on Total Assets (PBT/Total Assets}	(%)	30.81	10.32	3.17
Return on Investment (ROI) (PBT/Networth)		0.52	0.17	0.05
Debt Equity Ratio (Total Liability/Networth)		1.15	0.87	1.05
Current Ratio (Current Asset/Current Liability)		1.48	1.27	1.04

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions	As on 31.03.2008 Rs. in millions
Due other than to Micro, Small and Medium Enterprises	1219.238	708.569	690.567

BACKGROUND

Subject was incorporated on September 5,1994. The Company is a joint venture between the Aditya Birla Group and Sun Life Financial, Inc, Canada. The share capital of the Company is equally owned by Aditya Birla Financial Services Private Limited (Wholly owned Subsidiary of Aditya Birla Nuvo Limited) - and Sun Life (India) AMC Investments Inc., which is a wholly owned subsidiary of Sun Life Financial, Inc., Canada

The Company is registered with Securities and Exchange Board of India (SEBI) under the SEBI (Mutual Funds) Regulations, 1996 and the principal activity is to act as an investment manager to Birla Sun Life Mutual Fund. The Company manages the investment portfolios of Birla Sun Life Mutual Fund, India Advantage Fund Limited, Mauritius, India Excel (Mauritius) Fund. The Company is also registered under the SEBI (Portfolio Managers) Regulations, 1993 and provides portfolio management services and investment advisory services to offshore funds and high net worth investors.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

1. Disputed income tax matters - Rs.44.400 millions (Previous Year Rs.40.247 millions)

2. Disputed legal claims:

· Human Resource related issue pending in Labour Court of Rs. Nil ( Previous Year Rs.0.049 million)

· Investor claims pending in Consumer Redressal Forums of Rs.0.788 million (Previous Year 0.573 million)

· Investor claims pending in High court of Rs.0.150 million (Previous Year 182.025 million)

· Investor claims pending in other courts/authorities of Rs.0.470 million (Previous Year 0.106 million)

· Disputed other legal matters Rs.0.229 million (Previous year Rs.0.229 million)

· The management has taken a legal opinion on the above matters. The chances of losing the above legal matters is unlikely and so no provision for the liability is been made in the books.

Estimated amount of contracts (net of advances) remaining to be executed on capital account is Rs.3.236 millions (Previous year Rs.36.755 millions.

During financial year ended March 31, 2006 Birla Sun Life Trustee Company Private Limited took over the mutual fund schemes from ACAM Trust Company Private Limited and simultaneously the company acquired the right to manage the said schemes from Alliance Capital Asset Management (India) Private Limited.

Segment information for the year ended 31st March 2010

The Company's Operations mainly relate to providing asset management services and portfolio management services. In the opinion of the management, the risks and rewards attached to the business are similar in nature. Hence separate Segment under Accounting Standard 17 on "Segment Reporting" is not required to be reported as the Company's business is restricted to single Segment i.e. Asset Management Services.

Auditors' Remuneration consists of Audit Fees Rs.0.600 million (Previous Year Rs.0.850 million); Out of Pocket Expenses Rs.0.036 million (Previous Year Rs.0.020 million); Tax Audit Fees Rs.0.100 million (Previous Year Rs.0.100 million); For Other Services Rs.0.225 million (Previous Year 0.500 million) and service tax on the above Rs.0.095 million (Previous Year Rs.0.161 million)

Sundry Creditors do not include any amount payable to Small Scale Industrial Undertakings and Micro, Small and Medium Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA), which came into force from October 02, 2006, certain disclosures, are required to be made relating to Micro, Small and

Medium Enterprises. On the basis of the information and records available with the management, the following disclosures are made for the amounts due to the Micro, Small and Medium enterprises, who are registered with the competent authorities.

FIXED ASSETS

· Office Equipment

· Computers

· Furniture and Fixtures

· Leasehold Improvements

· Vehicles – Own

· Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.37
UK Pound	1	Rs.70.84
Euro	1	Rs.62.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.