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1. JAZAA FINANCIAL ADVISORY PVT. LTD. Ethics . Principles . Social Responsibility WEEKLY NEWSLETTER www.jazaa.in 26th Jan 2013

2. NEWSLETTER 26th Jan 2013 BSE SENSEX INDIAN STOCK MARKETS Indian shares posted their biggest daily percentage gain in almost two weeks on Friday, as interest-rate sensitive stocks such as State Bank of India rose on expectations the central bank will ease monetary policy next week. Markets ended the week marginally higher on the back of strong corporate earnings from major Sensex companies. The BSE benchmark Sensex surged to its highest closing level in over two year, even as broader markets underperformed. The BSE Sensex index gained 179.75 points, or 0.90%, to close at 20,103.53 points, while the Nifty 50 added 55.30 points, or 0.92%, to end at 6,074.65. The Indian markets rallied on Friday on growing hopes of at least 25 basis points cut in policy rates by the RBI in its upcoming monetary policy review on Tuesday. Finance minister P Chidambaram on his road show in Hong Kong and Singapore has assured foreign investors of continuation of reform and to cut fiscal deficit. On Monday market is expected to open marginally in the green tracing positive opening trades in the SGX Nifty and most of the Asian indices. • GLOBAL MARKETS • The S&P 500 index on Friday closed above the 1,500 level for the first time in more than five years as strong U.S. earnings reports from Procter & Gamble. • The euro hit an 11-month high and global equity markets advanced on Friday on signs of a healthier European financial system and a brighter outlook for Germany. • International bankers and finance ministers warned on Saturday that Europe's crisis was not over even though the euro currency is now stabilized • Move over, China. The market that has got bankers attending the World Economic Forum at Davos this year excited is Africa. • Chile hopes to sign a free trade agreement with Thailand soon and is seeking to expand a limited one it has with India. • All Nippon Airways Co which has the biggest fleet of Boeing Co'stroubled Dreamliner jets, on Saturday cancelled hundreds of flights until February 18

3. NEWSLETTER 26th Jan 2013 Editor’s Blog  An Interest rate cut is widely expected in the RBI's third quarter review of credit and monetary policy for the financial year 2012-13 The government has taken steps to bring its finances under control and inflation moderated. The RBI on the other hand is seeking to come up with a policy that counters the fiscal and current account deficits to create room for monetary easing. As recently reported that monetary policy needs to be calibrated in addressing growth risks as inflation remains above the Reserve Bank's comfort level and macro economic risks from twin deficits persists. If inflation recedes further, the wide current account deficit may slow the pace of monetary easing, indicating a probable aversion to making deep cuts in rates that are among the highest of the major economies. GDP growth that once looked set to hit double-digits has been stuck below 6 percent for the past few quarters and is poised to post its weakest growth in a decade. The current account gap had touched a record high of 5.4 percent in July-September and is likely to rise further in the December quarter. Another factor that may influence the RBI decision is the industrial production data, which had logged a negative 0.1 percent growth year-on-year in November 2012.One cannot ignore the fact that business confidence in Asia's third largest economy over the months has worsened. According to a survey by the Confederation of Indian Industry (CII), business confidence worsened during the October-December quarter due to high interest rates and infrastructure bottlenecks. Amidst all these negative forces I feel it is mere figments of imagination to expect RBI to further cut down rates or any such good news. E-GOLD and E-SILVER CommodityE-GOLD Last Price: 3249.9 % Return since last week: 0.23 One year Return: 15.85 CommodityE-SILVER Last Price : 5973.5 % Return since last week: -0.74 One year Return: -0.74

4. NEWSLETTER 26th Jan 2013 • NEWS THIS WEEK • http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/maruti-suzuki-tops-1600-hits-52-week-high-on-q3-earnings/articleshow/18181440.cms Maruti Suzuki tops 1600, hits 52-week high on Q3 earnings Rupee washes out initial gains vs dollar; still up 3 paise http://economictimes.indiatimes.com/markets/forex/rupee-washes-out-initial-gains-vs-dollar-still-up-3-paise/articleshow/18145539.cms http://in.reuters.com/article/2013/01/26/chile-trade-agreement-india-idINDEE90P04M20130126 Chile seeks India trade pact expansion http://in.reuters.com/article/2013/01/26/morgan-stanley-india-licence-idINDEE90P02Z20130126 Morgan Stanley to let India banking licence lapse P&G posts solid quarter, gives CEO more breathing room http://in.reuters.com/article/2013/01/25/procter-results-idINDEE90O0B120130125

5. NEWSLETTER 26th Jan 2013 FIRMS IN SHARIAH 50 ThermaxLimited is an INR 5,375 crore (USD 1.05 Billion) company, is one of the few companies in the world that offers integrated, innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals.. It is headquartered in Pune, India and operate globally through 19 International offices, 12 Sales & Service offices and 9 manufacturing facilities - five of which are in India and four overseas. Over the years, Thermax has formed technology partnerships with global majors, including: Babcock & Wilcox (USA), Kawasaki Thermal Engineering (Japan), BalckeDurr (Germany), Eco-Tech (Canada) and Georgia Pacific (USA). CG coverage universe, only Thermax outperformed the sensex, aided by bagging a `503 cr EPC order for captive power plant. Rest of the CG stocks posted a qoq decline due to tepid order intake and continued margin pressure. Thermax operates in China through the newly formed subsidiary, Thermax (Zhejiang) Cooling & Heating Engineering Co Ltd, China. In this market, the company focuses on its cooling business and has set up an absorption chiller manufacturing facility. The plant has state-of-the-art machinery and is based on a lean manufacturing platform. Chillers are assembled on trolleys and robotics is used for improving welding quality. Materials are sourced locally to speed up production, while dedicated small cranes at work stations, reduce lead times.  BSE TASIS SHARIAH 50

6. NEWSLETTER 26th Jan 2013 HADITH OF THE WEEK Narated By Abu BakhtariAt-Tai: The Prophet forbade the sale of a dates on the trees till they became fit for eating and could be weighed." A man asked what to be weighed (as the dates were still on the trees). Another man sitting beside Ibn 'Abbas replied, "Till they are cut and stored." Narrated Abu Al-Bakhtari: I heard Ibn Abbas (saying) that the Prophet forbade... etc. as above. SahihBukhari Volume 003, Book 035, Hadith Number 450 • Booming Sukuk • A recent report published by KFH research revealed that total Sukuk issuance by end of 2012 reached $131bn with 54% increase than 2011. The sukuk market is witnessing extensive growth in the Islamic Finance sector. It has finally broke out from its shell of being a niche market instrument to enter a new era as an alternative to conventional bonds. Analysts are expecting the demand of Sukuk to reach upto $421 billion by 2016. The demand seems to be rising because of investors inclination towards Islamic Capital market. Investors expect 50 percent of their portfolios to be allocated to Islamic finance investments, out of which an average of 35 to 40 percent, would be allocated to Sukuk. The leading countries in Sukuk issuance are: Malaysia, Saudi Arabia, UAE, and Indonesia. Malaysia dominated among them in terms of amount issued, accounting for a 90.2 per cent market share.. In the UAE, the second largest Arab economy, Abu Dhabi's Al Hilal bank issued a $500mn sukuk this year. The other reason for the growth of Sukuk is due to the declining yields for both corporate and sovereign bonds, the rarity of high quality yielding papers and the flight to fixed income safety amid more concerns emerging from Europe. GLOSSARY OF ISLAMIC BANKING TERMINOLOGY BaiMuajjal A contract involving the sale of goods on a deferred payment basis. The bank or provider of capital buys the goods (assets) on behalf of the business owner. The bank then sells the goods to the client at an agreed price, which will include a mark-up since the bank needs to make a profit. The business owner can pay the total balance at an agreed future date or pay by installments over a pre-agreed period. This is similar to a Murabaha contract since it is also a credit sale. .

7. NEWSLETTER 26th Jan 2013

8. NEWSLETTER 26th Jan 2013 Disclaimer This document has been prepared by JaZaa Financial Advisory Pvt. Ltd.(JaZaa) This Document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to and may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use is prohibited. Kindly note that this document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. JaZaa will not treat recipients as customers by virtue of their receiving this report. The information contained herein is from publicly available data or other sources believed to be reliable. While we would endeavor to update the information herein on reasonable basis, JaZaa, its subsidiaries and associated companies, their directors and employees (“JaZaa and affiliates”) are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent JaZaa and affiliates from doing so. We do not represent that information contained herein is accurate or complete and it should not be relied upon as such. This document is prepared for assistance only and is not intended to be and must not alone betaken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. We do not undertake to advise you as to any change of our views. Affiliates of JaZaa may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject JaZaa and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. JaZaa & affiliates may have used the information set forth herein before publication and may have positions in, may from time to time purchase or sell or may be materially interested in any of the securities mentioned or related securities. JaZaa may from time to time solicit from, or perform investment banking, or other services for, any company mentioned herein. Without limiting any of the foregoing, in no event shall JaZaa, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. Any comments or statements made herein are those of the analyst and do not necessarily reflect those of JaZaa.

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