MIRA INFORM REPORT

Report Date :

05.01.2012

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) :	31.03.2011
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 :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 9000000
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. Financial Position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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

Management Non Co-operative.

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 http://www.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	31.03.2011	31.03.2010
	(Rs. In Millions)
Inter Corporate Deposits
ICD – Dahej Harbour and Infrastructure Limited	0.000	250.000
ICD – Ultratech Cement Limited	0.000	100.000
Total	0.000	350.000

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 · Aditya Birla Sun Life AMC Limited, Dubai · Aditya Birla Sun Life AMC Pte. Limited, Singapore
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 · ABNL Investment Limited · Aditya 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 · IDEA Cellular Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		180.000	180.000	180.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2070.693	1225.264	740.785
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2250.693	1405.264	920.785
LOAN FUNDS
Inter Corporate Deposits		0.000	350.000	0.000
TOTAL BORROWING		0.000	350.000	0.000
DEFERRED TAX LIABILITIES		0.000	9.590	35.210
TOTAL		2250.693	1764.854	955.995
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		368.285	484.410	541.580
Capital work-in-progress		1.724	0.343	22.504
Capital Advance		0.584	0.000	0.228
INVESTMENT		1252.009	676.895	173.776
DEFERREX TAX ASSETS		11.809	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	58.245	161.339	43.881
	Cash & Bank Balances	58.300	32.168	85.301
	Other Current Assets	0.090	38.378	0.029
	Loans & Advances	1554.215	1640.248	890.311
Total Current Assets		1670.850	1872.133	1019.522
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1008.467	1219.238	708.569
	Other Current Liabilities	35.138	39.668	81.018
	Provisions	10.963	10.021	12.028
Total Current Liabilities		1054.568	1268.927	801.615
Net Current Assets		616.282	603.206	217.907
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2250.693	1764.854	955.995

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Management and Advisory Fees	3138.738	2835.231	1732.100
		Portfolio Management Fees	89.652	91.748	46.866
		Real Estate Fund Management Fees	430.061	0.000	0.000
		Investment Income	82.641	69.752	88.884
		Other Income	129.938	134.410	87.180
		TOTAL (A)	3871.030	3131.141	1955.030
Less	EXPENSES
		Personnel Cost	1006.756	807.623	759.567
		Administrative and Other Expenses	623.589	633.145	521.876
		Scheme Expenses	833.357	775.517	395.577
		TOTAL (B)	2463.702	2216.285	1677.020
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1407.328	914.856	278.010
Less	FINANCIAL EXPENSES (D)		5.472	41.707	0.654
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1401.856	873.149	277.356
Less/ Add	DEPRECIATION/ AMORTISATION (F)		140.339	147.089	116.233
	PROFIT BEFORE TAX (E-F) (G)		1261.517	726.060	161.123
Less	TAX (H)		416.087	241.581	68.392
	PROFIT AFTER TAX (G-H) (I)		845.430	484.479	92.731
	Short Provision for Tax of earlier years		0.000	0.000	14.076
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1130.174	645.695	567.040
	BALANCE CARRIED TO THE B/S		1975.604	1130.174	645.695
	EARNINGS IN FOREIGN CURRENCY (ON ACCRUAL BASIS)
		Management and Advisory Fees	77.663	65.520	54.096
		Dividend	45.996	57.922	67.592
	TOTAL EARNINGS		123.659	123.442	121.688
	Earnings Per Share (Rs.)		46.97	26.92	5.15

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	21.84	15.47	4.74
Net Profit Margin (PBT/Sales)	(%)	34.48	24.81	9.06
Return on Total Assets (PBT/Total Assets}	(%)	61.87	30.81	10.32
Return on Investment (ROI) (PBT/Networth)		0.56	0.52	0.17
Debt Equity Ratio (Total Liability/Networth)		0.47	1.15	0.87
Current Ratio (Current Asset/Current Liability)		1.58	1.48	1.27

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Due to Micro and Small Enterprises	--	--	--
- Due to other than to Micro, Small and Medium Enterprises	1008.467	1219.238	708.569
Total	1008.467	1219.238	708.569

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.57.540 millions (Previous Year Rs.44.400 millions)

2. Disputed legal claims:

· Investor claims pending in Consumer Redressal Forums of Rs.0.824 million (Previous Year 0.788 million)

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

· Investor claims pending in other courts/authorities of Rs.0.116 million (Previous Year Rs.0.470 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.

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.53.14
UK Pound	1	Rs.83.08
Euro	1	Rs.69.25

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		67

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.