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IDFC Mutual Fund

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    IDFC Mutual Fund IDFC Mutual Fund Document Transcript

    • IDFC Mutual Fund STATEMENT OF ADDITIONAL INFORMATION (SAI) Sponsor : Infrastructure Development Finance Company Limited (IDFC) Investment Manager : IDFC Asset Management Company Private Limited Trustee : IDFC AMC Trustee Company Private Limited This Statement of Additional Information (SAI) contains details of IDFC Mutual Fund (IDFCMF), its constitution, and certain tax, legal and general information. It is incorporated by reference (is legally a part of the Scheme Information Documents of IDFC Mutual Fund). This SAI is dated July 25, 2008 IDFC Asset Management Company Pvt. Ltd.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 1 I. INFORMATION ABOUT SPONSOR, AMC AND TRUSTEE COMPANIES A. Constitution of the Mutual Fund shareholders included the Government of India - 20%, foreign investors (including Khazanah National, IFC, CDC, IDFC Mutual Fund is sponsored by Infrastructure Morgan Stanley, Goldman Sachs and Citigroup among Development Finance Company Limited (IDFC). The sponsor others) - 49% and public / others 31%. As on December 31, is the settler of the Mutual Fund Trust. The sponsor has 2007 IDFC had an asset base of over USD 6.5 billion, net entrusted a sum of Rs. 30,000 to the Trustees as its worth of USD 1.4 billion and a market capitalization of USD contribution towards the corpus of the Mutual Fund. 7.5 billion. IDFC is a leading diversified financial institution providing a Financial Performance of the Sponsor (past three years) wide range of financing products and fee-based services with infrastructure as its focus area. IDFC’s key businesses include (in Rs. crores) : project finance, investment banking, asset management, Particulars 31.03.08 31.03.07 31.03.06 principal investments and advisory services. IDFC also works Net Worth 5454.38 2882.03 2544.19 closely with government entities and regulators in India to Total Income 2532.42 1505.74 1002.36 advise and assist in formulating policy and regulatory Profit after tax 669.17 462.87 375.64 frameworks that support private investment and public- Assets Under Management 2545 2671 2551 private partnerships in infrastructure development. (under its private equity business) B. Sponsor C. The Trustee IDFC Mutual Fund is sponsored by Infrastructure ANZ Trustee Company Private Limited, a company registered Development Finance Company Limited (IDFC). The sponsor under the Companies Act, 1956, was established by Australia is the settler of the Mutual Fund Trust. The sponsor has and New Zealand Banking Group (ANZ) and had been entrusted a sum of Rs. 30,000 to the Trustees as its appointed as the Trustee of ANZ Grindlays Mutual Fund vide contribution towards the corpus of the Mutual Fund. Trust Deed dated December 29, 1999, as amended from time IDFC is a leading diversified financial institution providing a to time. ANZ sold the mutual fund business to Standard wide range of financing products and fee-based services with Chartered Bank (SCB) in 2001, pursuant to which SCB held infrastructure as its focus area. IDFC’s key businesses include 100% stake in the equity share capital of the Trustee Company. project finance, investment banking, asset management, SCB agreed to sell the business to Infrastructure Development principal investments and advisory services. IDFC also works Finance Company Limited (IDFC) in 2008. Pursuant to the closely with government entities and regulators in India to transaction, IDFC/ its nominees hold 100% of the shares of advise and assist in formulating policy and regulatory the Trustee Company. The company has now been renamed frameworks that support private investment and public- as IDFC AMC Trustee Company Private Limited. It shall through private partnerships in infrastructure development. its Board of Directors discharge its obligation as Trustee of IDFC was established in 1997 as a private sector enterprise IDFC Mutual Fund. The Trustee ensures that the transactions by a consortium of public and private investors and operates entered into by the AMC are in accordance with the SEBI as a professionally managed commercial entity. IDFC listed Regulations and will also review the activities carried on by its equity shares in India pursuant to an initial public offering the AMC. in August 2005. As at December 31, 2007, IDFC’s Details of Trustee Directors : Name Age/Qualification Brief Experience Mr.Vikram 42 Years / Chartered He is a C.A and M. B. A. from the Wharton School of the University of Pennsylvania. Limaye* Accountant and MBA He is the Executive Director of Infrastructure Development Finance Company Limited (Wharton School of (IDFC). He was the director of Credit Suisse First Boston, USA and worked with University of Pennsylvania them for a period of 8 Years. Prior to this he was a Senior Associate with Ernst & Young, Oman for a period of 3 years. He had been with Citibank, as Assistant Manager. He had also worked with Arthur Andersen & Co., Mumbai as the Senior Associate for a period of 4 years. Other Directorships : 1. IDFC Trustee Company Limited 2. IDFC Investment Advisors Limited
    • 2 STATEMENT OF ADDITIONAL INFORMARION (SAI) Name Age/Qualification Brief Experience 3. IDFC Private Equity Company Limited 4. IDFC Project Equity Company Limited 5. IDFC Capital Company Limited 6. IDFC PPP Trusteeship Company Limited 7. IDFC Projects Limited 8. IDFC-SSKI Securities Limited 9. IDFC-SSKI Private Limited 10. Asset Reconstruction Company (India) Limited 11. Sharekhan Limited 12. Human Value Developers Private Limited 13. E-Clerx Services Limited Mr. Jamsheed 77 Years / M.A, In his career as an I A S officer, he held various important positions including that Kanga LLB, Masters in of Managing Director, Maharashtra State Agro Industries Development Corporation Public Administration and Maharashtra State Tourism Development Corporation, Joint Secretary, Finance (MPA), Harvard, USA Department, Maharashtra State, Joint Secretary (Projects & Finance), Department Retired IAS Officer of Atomic Energy, Secretary to Government of Maharashtra, Municipal Commissioner, Bombay Municipal Corporation, Chairman and Managing Director, Export Credit Guarantee Corporation of India in the rank of Secretary to Government of India. After retirement, he had been the Vice-Chairman and Managing Director of Tata Housing Development Co. Limited and now is a Senior Corporate Advisor to Tata Housing Development Co. Limited from April 1997. He is also a Consultant to Forbes Gokak Limited. Other Directorships : 1. Forbes Campbell Holdings Limited 2. The Associated Building Company Limited Mr. Dattatraya 76 Years / M.Com, In his career spanning over 34 years till 1990 as an IAS Officer, he had held very M. Sukthankar Retired IAS Officer important portfolios in the Govt. of Maharashtra including that of Secretary, Education Department, Secretary, Industries Dept, Metropolitan Commissioner, Municipal Commissioner, Greater Bombay, and finally as Chief Secretary to the Govt. of Maharashtra. He was also the Secretary, Ministry of Urban Development, Govt. of India for two years Other Directorships : 1. Housing Development Finance Corporation Limited 2. Tata Housing Development Co. Limited 3. Phoenix Township Limited 4. Indoco Remedies Limited 5. HDFC Developers Limited 6. Sangit Mahabharati, Mumbai-Vice Chairman 7. The Society for Recycling of Waste of Recoverable Disposal (REWARD), Mumbai- Board of Trustees/Management 8. The Electoral Trust, Mumbai- Board of Trustees/Management Mr. U 66 Years / Cost He was formerly the Chairman and Managing Director of Bharat Petroleum Sundararajan Accountant Corporation Limited for around 9 years. Other Directorships : 1. IDFC Trustee Company Limited 2. Gujarat State Petronet Limited 3. Shipping Corporation Of India Limited 4. Ennore Port Limited 5. Bharat Oman Refineries Ltd * - Associate Director
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 3 Rights, Obligations, Responsibilities and Duties of the Trustee 7. The Trustee is required to ensure that all the activities of the under the Trust Deed and the Regulations: AMC are in accordance with the provisions of the Regulations. Pursuant to the Trust Deed dated December 29, 1999 (as amended 8. Where the Trustee has reason to believe that the conduct of from time to time) constituting the Mutual Fund and in terms of the business of the Fund is not in accordance with these the Regulations, the rights, obligations, responsibilities and Regulations and the Scheme it is required to take such duties of the Trustee are as follows : remedial steps as are necessary by it and to immediately inform SEBI of the violation and the action taken by it. 1. The Trustee shall have a right to obtain from the AMC such information as is considered necessary by it. 9. Each Director of the Trustee is required to file with the Trust the details of his transactions of dealings in securities on a 2. The Trustee shall ensure before the launch of any Scheme quarterly basis. that the Asset Management Company has : 10. The Trustee is accountable for and is required to be the a. Systems in place for its back office, dealing room and custodian of the Fund’s property of the respective Scheme accounting; and to hold the same in trust for the benefit of the Unitholders b. Appointed all key personnel including fund manager(s) in accordance with the Regulations and the provisions of the for the Scheme(s) and that the trustees are satisfied with Trust Deed. the adequacy of number of key personnel considering 11. The Trustee is required to take steps to ensure that the the size of the mutual fund and the proposed Scheme; transactions of the Fund are in accordance with the provisions c. Appointed auditors to audit the accounts of the of the Trust Deed. Schemes; 12. The Trustee is responsible for the calculation of any income d. Appointed a compliance officer who shall be responsible due to be paid to the Fund and also of any income received in for monitoring the compliance of the act, rules and the Mutual Fund for the holders of the Units of any Scheme regulations, notification, Guidelines, instructions etc. in accordance with the Regulations and the Trust Deed. issued by the Board or the Central Government and for 13. The Trustee is required to obtain the consent of the redressal of investors grievances. Unitholders of a Scheme : e. Appointed registrars and laid down parameters for their a. When the Trustee is required to do so by SEBI in the supervision and periodical inspections; interest of the Unitholders of that Scheme, or f. Prepared a compliance manual which is updated by b. Upon a requisition made by three-fourths of the including all the provisions of regulations and guidelines Unitholders of any Scheme under the Fund for that issued by SEBI from time to time and designed internal Scheme, or control mechanisms including internal audit systems commensurate with the size of the mutual fund; c. If a majority of the Trustees decide to wind up the Scheme g. Specified norms for empanelment of brokers and or prematurely redeem the Units. marketing agents. 14. The Trustee is required to ensure that no change in the 3. The Trustee shall ensure that the AMC has been diligent in fundamental attributes of any Scheme or the trust or fees empanelling the brokers, in monitoring securities transactions and expenses payable or any other change which would with brokers and avoiding undue concentration of business modify the Scheme and affect the interest of Unitholders, with any broker. shall be carried out unless, 4. The Trustee is required to ensure that the AMC has not given a. a written communication about the proposed change is any undue or unfair advantage to any associate or dealt with sent to each Unitholder and an advertisement is given in any of the associates of the AMC in any manner detrimental one English daily newspaper having nationwide to the interests of the Unitholders. circulation as well as in a newspaper published in the language of the region where the head office of the 5. The Trustee is required to ensure that the transactions entered mutual fund is situated; and into by the AMC are in accordance with the Regulations and the Scheme. b. the Unitholders are given an option to exit at the prevailing net asset value without any exit load. 6. The Trustee is required to ensure that the AMC has been managing the Scheme (s) independently of other activities 15. The Trustee is required to call for the details of transactions and has taken adequate steps to ensure that the interest of in securities by the directors and key personnel of the AMC investors of one Scheme are not compromised with those of in their own names or on behalf of the AMC and report the any other Scheme or of other activities of the AMC. same to SEBI as and when called for.
    • 4 STATEMENT OF ADDITIONAL INFORMARION (SAI) 16. The Trustee is required to review quarterly, all transactions Schemes. carried out between the Fund, the AMC and its associates. 27. The Trustee shall ensure that all service providers are holding 17. The Trustee is required to review quarterly, the net worth of appropriate registrations from SEBI or the concerned the AMC and in case of any shortfall ensure that the AMC regulatory authority. makes up for the shortfall as per clause (f) of sub regulation (1) of Regulation 21 of the Regulations. 28. The Trustee shall arrange for test checks of service contracts. 18. The Trustee is required to periodically review all service 29. The Trustee shall immediately report to SEBI of any special contracts such as custody arrangements and transfer agency, developments in the mutual fund. and satisfy itself that such contracts are executed in the Specific Due Diligence: interest of the Unitholders. 30. The Trustee shall : 19. The Trustee is required to ensure that there is no conflict of interest between the manner of deployment of its net worth a. Obtain internal / concurrent audit reports at regular by the AMC and the interest of the Unitholders. intervals from independent auditors appointed by the Trustee. 20. The Trustee is required to periodically review the investor complaints received and the redressal of the same by the b. Obtain compliance certificates at regular intervals from AMC. the AMC. 21. The Trustee is required to abide by the Code of Conduct as c. Hold meeting of Trustees more frequently and at least specified in the Fifth Schedule of the Regulations. six such meetings shall be held in every year. 22. No amendment to the trust deed shall be carried out without d. Consider the reports of the independent auditor and the prior approval of SEBI and unitholders approval would compliance reports of the AMC at the meetings of the be obtained where it affects the interest of the unitholders. Trustee for appropriate action. 23. The Trustee has to furnish to SEBI on a half yearly basis: e. Maintain records of the decisions of the Trustees at their a. a report on the activities of the Fund; meetings and of the minutes of the meetings. b. a certificate stating that the Trustees have satisfied f. Prescribe and adhere to the code of ethics by the Trustees, themselves that there have been no instances of self AMC and its personnel. dealing or front running by any of the directors of the g. Communicate in writing to the AMC of the deficiencies Trustee Company, directors and key personnel of the and checking on the rectification of deficiencies. AMC; Notwithstanding anything contained in sub- regulations c. a certificate to the effect that the AMC has been (1) to (25), the trustees shall not be held liable for acts managing the Schemes independently of any other done in good faith if they have exercised adequate due activities and in case any activities of the nature referred diligence honestly. to in Regulations 24, sub regulation (2) of the 31. The independent directors of the Trustee or AMC shall pay Regulations have been undertaken, the AMC has taken specific attention to the following, as may be applicable, adequate steps to ensure that the interest of the namely: Unitholders is protected. a. The Investment Management Agreement and the 24. The independent Directors of the Trustee are required to give compensation paid under the agreement. their comments on the report received from the AMC regarding the investments by the Mutual Fund in the securities b. Service contracts with affiliates; whether the AMC has of the group companies of the Sponsors. charged higher fees than most contractors for the same services. General Due Diligence: c. Selection of the AMC’s independent Directors. 25. The Trustee shall be discerning in the appointment of the directors of the Asset Management Company. d. Securities transactions involving affiliates to the extent such transactions are permitted. 26. The Trustee shall review the desirability of continuance of the AMC if substantial irregularities are observed in any of the e. Selecting and nominating individuals to fill independent Schemes and shall not allow the AMC to float any new directors’ vacancies.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 5 f. Ensure that the Code of Ethics is designed to prevent D. Asset Management Company fraudulent, deceptive or manipulative practices by insiders IDFC Asset Management Company Private Limited, a company in connection with personal securities transactions. incorporated under the Companies Act, 1956 on May 27th g. Ensure the reasonableness of fees paid to Sponsor, the 2008, having its Registered Office at 90, M G Road, Fort, AMC and any others for services provided. Mumbai 400 001. is the Asset Management Company of IDFC Mutual Fund._It had been appointed as the investment h. Review principal underwriting contracts and their manager of the Mutual Fund vide a deed of variation to the renewals. Investment Management Agreement, dated May 30th 2008. i. Review any service contract with the associates of the The Company originally known as ANZ Grindlays Asset AMC. Management Company Private Limited, was established by Australia and New Zealand Banking Group (ANZ), and had Notwithstanding anything contained in the Regulations, the been appointed by the Trustee to act as the Investment Trustee and its Directors shall not be held liable for acts done Manager of the ANZ Grindlays Mutual Fund vide the in good faith if they have exercised adequate due diligence Investment Management Agreement dated January 3, 2000. honestly. Consequent to sale of business by ANZ to Standard Chartered Supervisory role of the Trustee Bank (SCB) in 2001, 75% stake in the equity share capital of the AMC and 100% stake in the Preference Share Capital of From April 1, 2007 till date, nine meetings of the Directors of the AMC had been transferred to SCB. IDFC acquired the the Trustee were held. The Trustee’s supervisory role is equity and preference shares held by SCB in the Asset discharged interalia by reviewing the activities of the Asset Management Company Private Limited (AMC) on May 30th Management Company through perusal of the Half-Yearly 2008. IDFC also acquired the equity shares held by minority and Annual Accounts of the Fund and the Bi-monthly, shareholders in the AMC. Quarterly and Half-Yearly compliance reports. Further, the Shareholding pattern of the AMC : Audit Committee of the Trustee has been set up which reviews Shareholder Percentage reports being submitted by the Concurrent Auditors of the IDFC / persons / entities nominated by IDFC 100 Fund Details of the AMC Directors : Name Age/Qualification Brief Experience Dr. Rajiv 51 Years / B.A.(Hons) with He is the Managing Director and Chief Executive Officer of Infrastructure Lall* Politics, Philosophy, Development Finance Company Limited (IDFC), the sponsor of IDFC Mutual Economics from Oxford Fund. He is also the Chairman of the Board of Directors of IDFC Asset University, UK. Ph. D. with Management Company Private Limited. Prior to IDFC, he was a partner at Economics from University Warburg Pincus. Prior to which he was with Morgan Stanley Asia Limited, Hong of Columbia, USA. Kong as Executive Director. He had also been with the World Bank, Washington DC for a period of 8 Years, as Senior Economist for China. Other Directorships : 1. Infrastructure Development Finance Company Limited 2. IDFC Trustee Company Pvt. Ltd. 3. IDFC Private Equity Company Limited 4. IDFC Capital Company Limited 5. IDFC Projects Limited 6. IDFC-SSKI Securities Limited 7. IDFC-SSKI Private Limited 8. Securities Trading Corporation of India Limited 9. National Securities Depository Limited 10. National Stock Exchange of India Limited 11. Spandana Sphoorty Finance Limited
    • 6 STATEMENT OF ADDITIONAL INFORMARION (SAI) Details of the AMC Directors : (Contd.) Name Age/Qualification Brief Experience Dr. R H. 71 Years / M.A, He completed his M.A., Ph.D. (Economics) from the University of Bombay. He is Patil Ph. D. (Economics) presently the Chairman of Clearing Corporation of India Limited and Clearcorp Dealing Systems (India) Ltd. He was formerly the Managing Director of National Stock Exchange of India Limited for over 7 years. During his career spanning more than 35 years, he has been closely associated with the financial sector in various capacities and particularly with the capital market. Other Directorships : 1. National Stock Exchange of India Limited 2. NSDL Database Management Ltd (NDML) 3. National Securities Clearing Corporation Limited 4. National Securities Depository Limited 5. Corp Bank Securities Ltd. 6. NSE IT Limited 7. SBI Capital Markets Limited 8. Clearing Corporation of India Limited 9 Clearing Corp Dealing Systems (India) Ltd. 10. Axis Bank (erstwhile UTI Bank Ltd) 11. L & T Infrastructure Finance Co. Ltd. 12. Tata Power Trading Company Ltd. 13. Axis Private Equity Limited Mr. Pradip 72 Years / B.A, He was the Chairman of Thomas Cook (India) Limited and was responsible for Madhavji B.Com, LLB. enhancing its position externally, through further strengthening the company’s relationships with business partners, trade bodies and associates. He had been with Thomas Cook since 1977 and had held senior positions as Managing Director in 1979, Deputy Chairman & Managing Director in 1982, Executive Chairman in 1993 and was the Chairman since 1995. Prior to this he was with Dena Bank for over 18 years. 1. Kishco Cutlery Limited 2. United Phosphorus Limited 3. Parmananddas Jivandas Hindu Gymkhana – Trustee 4. Travel Corporation of India (TCI) 5. Australia New Zealand Business Association In India Mrs. Bakul 70 Years / B.Sc. She is a Chartered Secretary from the Chartered Institute of Company Secretaries, Patel (Microbiology & U.K. She was the Sheriff of Mumbai from 1992 – 1993. She is a Member of Chemistry), Zonal Advisory Board, Western Zone, Life Insurance Corporation of India and Master of Social Work, Western Regional Advisory Committee, Industrial Development Bank of India. (Tata Institute of Social Sciences, Bombay), She was a member on the Indian Advisory Board, Standard Chartered Grindlays Chartered Secretary, Bank Limited and the Chairperson of Maharashtra State Financial Corporation Chartered Institute from 1992 to 1995. of Companies Secretary, U.K. Other Directorships : 1. Neo Indcom Consultancy Pvt. Limited 2. Bay Petroplast Pvt. Limited 3. M/s. Merchant Media Pvt. Limited 4. Dynamic Advertising & Research Team Pvt. Limited 5. Vinyl Processors & Co.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 7 Details of the AMC Directors : (Contd.) Name Age/Qualification Brief Experience Mr. Naval BA (Mathematics) - He is the Managing Director of IDFC Asset Management Company Private Limited. Bir Kumar Bombay University, Prior to this he was Director & Head Originations of Global Capital Markets for PGDM – IIM Calcutta ANZ Investment Bank. In this role he handled debt and equity capital market transactions for a number of leading Indian corporates and was successful in improving the Bank’s position in the domestic capital markets. He joined the Bank in 1990 in the Merchant Banking Division and was appointed Head of the Merchant Bank for West India in 1994 and subsequently Head of the Investment Bank for West India in 1996. In these roles he has worked on a cross- section of investment banking products such as: Infrastructure financing, Corporate finance, Cross-border debt financing and Domestic capital market transactions. He worked briefly with Colgate Palmolive (India) Limited as a Brand Manager prior to joining Standard Chartered Grindlays Bank.He is a rank holder in Mathematics from Bombay University and holds an MBA from the Indian Institute of Management, Calcutta. Other Directorships : 1. Association of Mutual Fund of India Duties and obligations of AMC : maintenance of the Trust property, Custodian and/or any other entities entitled for the benefit of the Fund, audit fee, The Regulations and the Investment Management Agreement management fee and other fees; shall govern the duties and responsibilities of the AMC. The AMC, k. to provide or cause to provide information to SEBI and the in the course of managing the affairs of the Mutual Fund, has the Unitholders as may be specified by SEBI; to generally do all power, inter-alia: acts, deeds, matters and things, which are necessary for any a. to invest in, acquire, hold, manage or dispose of all or any object, purpose or in relation to the IDFC Mutual Fund in any manner or in relation to any Scheme of the IDFC Mutual securities and to deal with, engage in and carry out all other Fund. functions and to transact all business pertaining to the Fund; Obligations of the AMC, as specified in the SEBI (Mutual Funds) b. to keep the moneys belonging to the Trust with scheduled Regulations 1996 are as under : banks and Custodians as it may deem fit; (1) The asset management company shall take all reasonable c. to issue, sell and purchase Units under any Scheme; steps and exercise due diligence to ensure that the investment d. to repurchase the Units that are offered for repurchase and of funds pertaining to any scheme is not contrary to the hold, reissue or cancel them; provisions of these regulations and the trust deed. e. to formulate strategies, lay down policies for deployment of (2) The asset management company shall exercise due diligence funds under various Schemes and set limits collectively or and care in all its investment decisions as would be exercised separately for privately placed debentures, unquoted debt by other persons engaged in the same business. instruments, securitised debts and other forms of variable securities which are to form part of the investments of the (3) The asset management company shall be responsible for the Trust Funds; acts of commissions or omissions by its employees or the persons whose services have been procured by the asset f. to arrange for investments, deposits or other deployment as well as disinvestments or refund out of the Trust Funds as per management company. the set strategies and policies; (4) The asset management company shall submit to the trustees g. to make and give receipts, releases and other discharges for quarterly reports of each year on its activities and the money payable to the Trust and for the claims and demands compliance with these regulations of the Trust; h. to get the Units under any Scheme listed on any one or more (5) The trustees at the request of the asset management company stock exchanges in India or abroad; may terminate the assignment of the asset management company at any time: i. to open one or more bank accounts for the purposes of the Fund, to deposit and withdraw money and fully operate the Provided that such termination shall become effective only same; after the trustees have accepted the termination of j. to pay for all costs, charges and expenses, incidental to the assignment and communicated their decision in writing to administration of the Trust and the management and the asset management company.
    • 8 STATEMENT OF ADDITIONAL INFORMARION (SAI) (6) Notwithstanding anything contained in any contract or behalf of the asset management company and shall also agreement or termination, the asset management company report to the Board, as and when required by the Board. or its directors or other officers shall not be absolved of liability to the mutual fund for their acts of commission or omissions, (10) In case the asset management company enters into any while holding such position or office securities transactions with any of its associates a report to (7) (a) An asset management company shall not through any that effect shall be sent to the trustees at its next meeting broker associated with the sponsor, purchase or sell (11) In case any company has invested more than 5 per cent of the securities, which is average of 5% or more of the aggregate purchases and sale of securities made by the net asset value of a scheme, the investment made by that mutual fund in all its schemes. scheme or by any other scheme of the same mutual fund in Provided that for the purpose of this sub-regulation, that company or its subsidiaries shall be brought to the notice aggregate purchase and sale of securities shall exclude of the trustees by the asset management company and be sale and distribution of units issued by the mutual fund. disclosed in the half yearly and annual accounts of the Provided further that the aforesaid limit of 5% shall apply respective schemes with justification for such investment for a block of any three months. provided the latter investment has been made within one (b) An asset management company shall not purchase or year of the date of the former investment calculated on either sell securities through any broker [other than a broker side. referred to in clause (a) of sub-regulation (7)] which is average of 5% or more of the aggregate purchases and (12) The asset management company shall file with the trustees sale of securities made by the mutual fund in all its and the Board - schemes, unless the asset management company has recorded in writing the justification for exceeding the (a) detailed bio-data of all its directors alongwith their limit of 5% and reports of all such investments are sent interest in other companies within fifteen days of their to the trustees on a quarterly basis. appointment; and Provided that the aforesaid limit shall apply for a block (b) any change in the interests of directors every six months. of three months. (c) a quarterly report to the trustees giving details and (8) An asset management company shall not utilise the services of the sponsor or any of its associates, employees or their adequate justification about the purchase and sale of relatives, for the purpose of any securities transaction and the securities of the group companies of the sponsor or distribution and sale of securities: the asset management company as the case may be, by Provided that an asset management company may utilise such the mutual fund during the said quarter. services if disclosure to that effect is made to the unit holders (13) Each director of the Asset Management Company shall file and the brokerage or commission paid is also disclosed in the half yearly annual accounts of the mutual fund. the details of his transactions of dealing in securities with the trustees on a quarterly basis in accordance with guidelines Provided further that the mutual funds shall disclose at the time of declaring half-yearly and yearly results; issued by the Board. • any underwriting obligations undertaken by the schemes (14) The asset management company shall not appoint any person of the mutual funds with respect to issue of securities as key personnel who has been found guilty of any economic associate companies, offence or involved in violation of securities laws. • devolvement, if any, (15) The asset management company shall appoint registrars and • subscription by the schemes in the issues lead managed share transfer agents who are registered with the Board. by associate companies • subscription to any issue of equity or debt on private Provided if the work relating to the transfer of units is placement basis where the sponsor or its associate processed in-house, the charges at competitive market rates companies have acted as arranger or manager]. may be debited to the scheme and for rates higher than the (9) The asset management company shall file with the trustees competitive market rates, prior approval of the trustees shall the details of transactions in securities by the key personnel be obtained and reasons for charging higher rates shall be of the asset management company in their own name or on disclosed in the annual accounts.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 9 (16) The asset management company shall abide by the Code of Conduct as specified in the Fifth Schedule. Information on Key Personnel : Name Age/Qualification Brief Experience Mr. Naval 43 Years / PGDM – IIM He is the Managing Director of IDFC Asset Management Company Private Limited. Bir Kumar Calcutta, BA - Mathematics He has over 15 years of experience in Capital Markets. Managing (Bombay University) Prior to this he was Director and Head Originations of Global Capital Markets for Director ANZ Investment Bank. In this role he has handled debt and equity capital market transactions for a number of leading Indian corporates and was successful in improving the Bank’s position in the domestic capital markets from 193 to number 6. He joined the Bank in 1990 in the Merchant Banking Division and was appointed Head of the Merchant Bank for West India in 1994 and subsequently Head of the Investment Bank for West India in 1996. In these roles he has worked on a cross- section of investment banking products such as: Infrastructure financing, Corporate finance, Cross-border debt financing and Domestic capital market transactions. He worked briefly with Colgate Palmolive (India) Limited as a Brand Manager prior to joining Standard Chartered Grindlays Bank. Mr. Rajiv 41 Years / B.Com, ACA He has 14 years’ experience in fixed income markets. He has worked in treasury of Anand HSBC for 4 years and Standard Chartered Grindlays Bank for 3 years. In last Head assignment, was part of the bank’s Treasury team managing balance sheet Investments portfolios like SLR, daily funding as well as the foreign currency loan /deposit book. It was in this job that he was exposed to the cutting edge techniques of interest rate and liquidity risk management. It is this experience that he brings to managing investments in a manner that will meet the stated investment philosophy of each scheme. Mr. Debashis 44 Years / He has over 16 years experience in Capital Market Operations. He was Senior Roy M.Sc, MBA Manager, Projects & Domestic Custody for Standard Chartered Bank. In this role, Head he handled a special project team to provide comprehensive one stop services to Operations domestic mutual funds. He joined the Standard Chartered Grindlays Bank in 1995 in Custodial Services and was later appointed as Head of Custody in 2001. Prior to joining the bank he worked for ICICI Limited and SHCIL Mr. Gopal 34 Years, / ACA, He has over 11 years experience in compliance, operations, finance, legal, audit, Menon LLB (Hons), B.Com consultancy & secretarial functions. In his last assignment with HSBC Asset Compliance Management (India) Pvt. Ltd he was designated as Manager – Compliance & Legal Officer and for 2 years. (2003-2005). Prior to this he was with Zurich Asset Management Risk Manager Company Private Limited as Manager Compliance for 2 years.(2001-2003). He practiced as a Chartered Accountant during 2000-2001. He was also employed with JM Capital Management Company Private Limited as Manager (1999-2000) where he was involved in Compliance, Operations and Finance. He had worked with M/s N.M Raiji & Co, CAs for a period of two years (1997-1999) Mr. Emron 39 Years / B.Com, ACA. He has over 12 years’ experience in capital markets. Previously he was with ANZ Samuel Grindlays Bank (now Standard Chartered Grindlays Bank) in Treasury- Sales for two Head Sales years Mr. Praveen 38 Years / B.E. He has over 10 years of experience in Customer Service & Marketing. In his last Bhatt (Instrumentation) assignments, he was designated as the Head of Strategic Marketing at Head & Master of www.iinvestor.com (Part of Outlook Publications) and was a key player in the Customer Management development of the site www.iinvestor.com (March 2000 – June 2001). Prior to Servicing & studies (M.M.S.). that he worked at Zurich India AMC Pvt Ltd. & was involved in Marketing & Marketing Communication (February 1998- March 2000).
    • 10 STATEMENT OF ADDITIONAL INFORMARION (SAI) Information on Key Personnel : (Contd.,) Name Age/Qualification Brief Experience Mr. Ashwin 30 Years / B.E, He has over six years of experience in Wealth Management, Structured Finance, Patni PGDM – IIM Calcutta Credit and Market Groups and Business Consulting. In his last assignment he was Fund designated as Product Manager, Investment Services for Wealth Management Manager Function of Standard Chartered Bank (January 2005-November 2007). Prior to this he was working as Manager, Syndication for ICICI Bank (February 2003 – January 2005). He has also worked with Accenture India Pvt Ltd as Ananlyst (June 2001 – January 2003). Mr. Ajay 37 Years / B.E (Mechanical), He has over 9 years of experience in Funds Management. In his last assignment he Bodke Masters in Financial was designated as Senior Fund Manager (Equity), SBI Funds Management Pvt Ltd Senior Management and MBA (June 1995 – March 2004) Fund Manager Ms. Punam 33 Years / B.Sc- She has over 8 years experience in research, co-ordinating details on products and Sharma Non Medical, markets for the sales team. In the last assignment with Kotak Mahindra Asset Vice President MBA - Finance Management Company she was responsible for setting up of the research desk, working on reports on products and markets and developing databases Mr. Kenneth 38 Years / Graduate He has around 15 years experience in Equity Research & fund management. In his Andrade (B.Com) last assignment has was designated as Fund Manager (Equity) with Kotak Mahindra Senior Fund Asset Management Company Limited (July 2002- Sept.2005), managed equity Manager portfolios. SSKI Investor Services (March 1999- July 2001)& (Jan 2002 –July 2002) was involved in Portfolio advisory –Retail Broking Services, Nimbus Communications-(July 2001-Jan 2002) was involved in Broadcasting – Content Development, LKP Shares & Stock Brokers Pvt. Ltd (January 1998- March 1999) was a Analyst -Equity Research, Meghraj Financial Services (July 1996-July 1998) was a Portfolio Manager. Mr. Arjun 38 Years / MBA, He has over 10 years of experience in Fund Management, trading & research in Parthasarathy MA Economics Fixed Income, Equities & Derivatives. In his last assignment with Sundaram BNP Senior Fund Paribas Asset Management Company Limited, he was designated as the Head – Manager – Portfolio Management Services (April 2007 – May 2008). Prior to that he worked at Fixed Income Patco Investments & Consultancy Services Private Limited and was designated as Portfolio Manager (June 2006- March 2007). He worked at Citigroup as Fixed Income Trader (August 2002 – September 2005) & before that was employed at IDBI Bank as Fixed Income Trader (March2001 – July 2002). From September 1999 till February 2001 he worked at Cholamandalam Cazenove Asset Management Company Limited and was designated as the Fund Manager. Prior to that he worked at Cholamandalam Securities Limited as Equity Research Analyst (January 1998 – August 1999). Mr. Bhawin 28 Years / MBA He has over 4 years of experience in Credit Risk Analysis, etc. In his last assignment Shah – Finance with DBS Singapore he was responsible for Credit Risk Analysis (February 2007 – Credit Analyst June 2008). Prior to that he worked at Reliance Mutual Fund and was responsible for Credit Risk Analysis (June 2006 – February 2007). Before that he worked for CARE Ratings and was responsible for Credit Risk Analysis (May 2004 – June 2006) Mr. Sunil 35 Years / B.A. He has around 12 years of experience in equity trading. In his last assignment he Nair was designated as Equity – Dealer in Birla Sunlife AMC Ltd. (1995 – 2005). Prior to Equity Dealer which he was employed with Insec Shares & Stock (1994 - 1995) and has around eleven years of experience in equity trading.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 11 Information on Key Personnel : (Contd.,) Name Age/Qualification Brief Experience Chintan 30 Years / PGMBA He has over 7 years of experience in Capital Markets. In his last assignments with Mehta (Finance), B.Com. DBS Cholamandalam Mutual Fund, he was Fund Manager & Dealer for fixed income Associate Fund (From October 2004 – March 2008). Prior to that he worked at Sahara India Financial Manager Corporation Limited as Dealer- Treasury and was involved in dealing and investment management in fixed income market (From June 2001 – October 2004). He had worked with LKP Securities Limited as Dealer and was involved in dealing and over the counter broking in the fixed income market. Age: 30 years. No of staff involved in equity research : 1 No of persons involved in fund management (not including dealers and analysts) : 6 E. Service providers Custodian Deutsche Bank AG Kodak House, 222 D N Road, Fort, Mumbai – 400 001 SEBI Registration Number – IN/CUS/003 dated March 20, 1998. Registrar & Transfer agent Computer Age Management Services Pvt. Limited, A & B Lakshmi Bhawan, 609, Anna Salai, Chennai – 600 006 (CAMS). The Registrar is registered with SEBI under registration No: INR000002813 dated July 22, 1995. As Registrar to the Scheme, CAMS will interalia handle communications with investors, perform data entry services and despatch Account Statements. The Board of Directors of the AMC and the Trustee have satisfied themselves that the Registrar can provide the service required and has adequate facilities to discharge responsibilities with regard to processing of applications and dispatching unit certificates to unitholders within the time limit prescribed in the Regulations and also has sufficient capacity to handle investor complaints. Statutory Auditor BSR & Co., Chartered Accountants KPMG House, 448 Senapati Bapat Marg, Lower Parel, Mumbai – 400 013. Legal counsel Based on the matter involved, the AMC reserves the right to appoint appropriate legal counsel. Fund Accountant Fund Accounting is presently carried out by the Fund Accounting team of IDFC Asset Management Company Private Limited Collecting Bankers The collecting bankers of various schemes of IDFC Mutual Fund include : (1) Standard Chartered Bank (SEBI registration no. INBI0000885) 90 M. G. Road, Fort, Mumbai – 400 001. (2) HDFC Bank (SEBI registration no. INBI00000063) Sandoz House, Dr Annie Besant Road, Worli, Mumbai - 400018. (3) HSBC Bank (SEBI registration no. INBI00000027) 52/60, M.G. Road, Fort, Mumbai – 400 001 The AMC reserves the right to appoint other qualified banks as collecting bankers from time to time.
    • 12 STATEMENT OF ADDITIONAL INFORMARION (SAI) C. CONDENSED FINANCIAL INFORMATION The informatiom provided below scheme wise for all scheme launched by IDFC Mutual Fund during the last three fiscal years (excluding redeemed schemes) for each of the last three fiscal years. IDFC IDFC IDFC Classic Equity Fund Premier Equity Fund Imperial Equity Fund (IDFC-CEF) (IDFC-PEF) (IDFC-IEF) Historical per Unit Statistics Date of Allotment August 10, 2005 September 28, 2005 March 16, 2006 March March March March March March March March March 31, 2006 31, 2007 31, 2008 31, 2006 31, 2007 31, 2008 31, 2006 31, 2007 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the year /period (Plan - A) Growth Option ^10.0000 14.2200 14.8926 ^10.0000 12.8300 13.0343 ^10.0000 10.6300 11.3996 Dividend Option ^10.0000 14.2200 13.1758 ^10.0000 12.8300 13.0374 ^10.0000 10.6300 11.4374 (Plan - B) Growth Option - - - - - - - - - Dividend Option - - - - - - - - - Net Income per unit *2.5984 4.9261 3.3965 *0.3225 2.6482 3.1239 *0.0723 *1.7859 6.9345 Dividend per unit : Plan A 8/22/2006 - 1.5000 - - - - - - - 2/19/2007 - - - - - - - - - 3/20/2007 - - - - - - - - - 4/20/2007 - - - - - - - - - 5/25/2007 - - - - - - - - - 5/28/2007 - - 1.5000 - - - - - - 9/3/2007 - - - - - - - - - 10/22/2007 - - 1.5000 - - - - - - 2/11/2008 - - - - - - - - - 3/7/2008 - - - - - - - - - Plan B 2/19/2007 - - - - - - - - - 3/20/2007 - - - - - - - - - 4/20/2007 - - - - - - - - - 5/25/2007 - - - - - - - - - 9/3/2007 - - - - - - - - - 2/11/2008 - 3/7/2008 - Transfer to reserves (if any) - - - - - - - - NAV at the end of the year / period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A) Growth Option 14.2200 14.8926 18.7882 12.8300 13.0343 20.0355 10.6300 11.3996 14.6361 Dividend Option 14.2200 13.1758 13.5980 12.8300 13.0374 20.0335 10.6300 11.4374 14.6361 (Plan - B) Growth Option - - - - - - - - - Dividend Option - - - - - - - - - Absolute return - - - - - - - - - Returns during the half year (absolute) 27.08% 7.12% -8.33% - 15.02% 1.81% - 3.43% -3.47% Bench mark performance (Absolute) 28.65% 4.10% -8.80% 28.65% 4.10% -8.80% - 4.10% -8.80% Returns since inception (Absolute) for schemes which 42.20% - - 28.30% - - 6.30% - - have not completed 1 year Bench mark performance (Absolute) for schemes which 43.05% - - 28.85% - - 3.77% - - have not completed 1 year CAGR (since inception) - 27.47% 26.94% - 19.29% 31.94% - 13.41% 20.49% Bench mark performance in case of schemes in - 32.02% 28.91% - 26.31% 25.37% - 13.79% 18.70% existence for more than 1 year - Since Inception CAGR – (last 1 year) - 4.73% 26.08% - 1.59% 53.52% - 7.24% 28.30% Bench mark performance Last 1 year CAGR - 10.23% 24.06% - 10.23% 24.06% - 10.23% 24.06% CAGR - (Last 2 Years) - - 14.92% - - 16.93% - - 17.31% Bench mark performance Last 2 year CAGR - - 16.93% - - 14.16% - - 16.93% Net Assets end of period (Rs. Crs.) 788.29 369.84 366.77 309.94 218.75 582.63 449.34 210.56 139.80 Ratio of Recurring Expenses to net assets - Plan A 2.08% 2.24% 2.30% 1.86% 2.38% 2.24% 0.10% 2.30% 1.98% Ratio of Recurring Expenses to net assets - Plan B - - - - - - - - - ^ For the schemes launched during the period, the NAV at the beginning of the period is considered as Rs. 10/- per unit. * Net Income per unit arrived does not include deferred revenue expenditure which is being ammortised.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 13 Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC IDFC IDFC Enterprise Equity Fund Tax Saver (ELSS) Fund Arbitrage Fund (IDFC-EEF) (IDFC-TS (ELSS) F) (IDFC-AF) Historical per Unit Statistics (Contd.) Date of Allotment June 9, 2006 March 15, 2007 December 21, 2006 March March March March March March 31, 2007 31, 2008 31, 2007 31, 2008 31, 2007 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the year /period (Plan - A) Growth Option 10.7918 11.2454 ^10.0000 10.0549 ^10.0000 10.3327 Dividend Option 10.7918 11.2454 ^10.0000 10.0549 ^10.0000 10.1913 (Plan - B) Growth Option - - - - ^10.0000 10.3471 Dividend Option - - - - ^10.0000 10.2069 Net Income per unit *0.8353 3.4436 *0.0479 1.0726 1.1710 1.3655 Dividend per unit: Plan A 8/22/2006 - - - - - - 2/19/2007 - - - - 0.0400 - 3/20/2007 - - - - 0.1000 - 4/20/2007 - - - - - 0.1000 5/25/2007 - - - - - 0.1000 5/28/2007 - - - - - - 9/3/2007 - - - - - 0.1500 10/22/2007 - - - - - - 2/11/2008 - - - - - 0.0750 3/7/2008 - - - - - 0.1000 Plan B 2/19/2007 - - - - 0.0400 - 3/20/2007 - - - - 0.1000 - 4/20/2007 - - - - - 0.1000 5/25/2007 - - - - - 0.1000 9/3/2007 - - - - - 0.1500 2/11/2008 - - - - - 0.0750 3/7/2008 - - - - - 0.1000 Transfer to reserves (if any) - - - - - - NAV at the end of the year/period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A) Growth Option 11.2454 13.8086 10.0549 12.0621 10.3327 11.1911 Dividend Option 11.2454 13.8074 10.0549 12.0619 10.1913 10.4894 (Plan - B) Growth Option - - - - 10.3471 11.2626 Dividend Option - - - - 10.2069 10.5605 Absolute return - - - - - - Returns during the half year (absolute) 4.20% -4.29% - -4.05% - 4.30% Bench mark performance (Absolute) 4.10% -6.98% - -8.80% - 3.45% Returns since inception (Absolute) for schemes which 12.45% - 0.55% - 3.33% - have not completed 1 year Bench mark performance (Absolute) for schemes which 31.42% - 4.01% - 1.91% - have not completed 1 year CAGR ( since inception) - 19.51% - 19.62% - 9.21% Bench mark performance in case of schemes in existence for - 31.03% - 27.65% - 7.44% more than 1 year - Since Inception CAGR –(last 1 year) - 22.72% - 19.90% - 8.28% Bench mark performance Last 1 year CAGR - 24.06% - 24.06% - 7.52% CAGR –(last 2 years) - - - - - - Bench mark performance Last 2 years CAGR - - - - - - Net Assets end of period (Rs. Crs.) 1447.92 1307.22 59.94 71.91 442.10 911.85 Ratio of Recurring Expenses to net assets - Plan A 1.89% 1.91% 2.42% 2.34% 1.54% 1.67% Ratio of Recurring Expenses to net assets - Plan B - - - - 0.99% 1.18% ^ For the schemes launched during the period, the NAV at the beginning of the period is considered as Rs. 10/- per unit. * Net Income per unit arrived does not include deferred revenue expenditure which is being ammortised.
    • 14 STATEMENT OF ADDITIONAL INFORMARION (SAI) Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC IDFC IDFC Small & Midcap Fixed Maturity Tristar Series- I Equity Fund Arbitrage Fund - Series I (IDFC-TS-I) (IDFC-SMEF) (IDFC-FMAF-SI) Historical per Unit Statistics (Contd.) Date of Allotment March 7, 2008 December 14, 2007 January 12, 2006 March March March March March 31, 2008 31, 2008 31, 2006 31, 2007 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the year /period (Plan - A) Growth Option ^10.0000 ^10.0000 ^10.0000 10.4803 10.7794 Dividend Option ^10.0000 ^10.0000 ^10.0000 10.4803 10.7794 (Plan - B) Growth Option - ^10.0000 - - - Dividend Option - ^10.0000 - - - Net Income per unit -0.0539 1.9391 *0.3195 *0.7971 1.8546 Dividend per unit: Plan A 8/22/2006 - - - - - 2/19/2007 - - - - - 3/20/2007 - - - - - 4/20/2007 - - - - - 5/25/2007 - - - - - 5/28/2007 - - - - - 9/3/2007 - - - - - 10/22/2007 - - - - - 2/11/2008 - - - - - 3/7/2008 - - - - - Plan B - - 2/19/2007 - - - - - 3/20/2007 - - - - - 4/20/2007 - - - - - 5/25/2007 - - - - - 9/3/2007 - - - - - 2/11/2008 - - - - - 3/7/2008 - - - - - Transfer to reserves (if any) NAV at the end of the year/period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A) Growth Option 9.7571 10.2650 10.4803 10.7794 11.8017 Dividend Option 9.7571 10.2651 10.4803 10.7794 11.8017 (Plan - B) Growth Option - 10.2650 - - - Dividend Option - 10.2650 - - - Absolute return - - Returns during the half year (absolute) - - - 2.12% 1.27% Bench mark performance (Absolute) - - - 0.95% 3.79% Returns since inception (Absolute) for schemes which have -2.43% 2.65% 4.80% - - not completed 1 year Bench mark performance (Absolute) for schemes which have -2.80% 2.12% -0.40% - - not completed 1 year CAGR (since inception) - - - 6.38% 7.76% Bench mark performance in case of schemes in existence for more - - - 2.72% 5.17% than 1 year - Since Inception CAGR – (last 1 year) - - - 2.86% 9.46% Bench mark performance Last 1 year CAGR - - - 3.73% 8.23% CAGR –(last 2 years) - - - - 6.11% Bench mark performance Last 2 years CAGR - - - - 5.95% Net Assets end of period (Rs. Crs.) 251.44 61.70 19.30 19.67 15.85 Ratio of Recurring Expenses to net assets - Plan A 2.29% 0.64% 0.98% 0.95% 0.96% Ratio of Recurring Expenses to net assets - Plan B - 0.64% - - - ^ For the schemes launched during the period, the NAV at the beginning of the period is considered as Rs. 10/- per unit. * Net Income per unit arrived does not include deferred revenue expenditure which is being ammortised.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 15 Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC IDFC Fixed IDFC IDFC Fixed Maturity Maturity Plan Fixed Maturity Fixed Maturity 6th Plan - 9th Plan Yearly Series 2 Yearly Series 3 (IDFC-FMP-6) (IDFC-FMP-9) (IDFC-FMP-YS2) (IDFC-FMP-YS3) Historical per Unit Statistics Date of Allotment July July February February February March March March March 21, 2006 21, 2006 28, 2005 28, 2005 28, 2005 31, 2007 31, 2007 31, 2007 31, 2007 March March March March March March March March March 31, 2007 31, 2008 31, 2006 31, 2007 31, 2008 31, 2007 31, 2008 31, 2007 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the period (Plan - A) Growth Option 10.1694 10.3031 9.9819 10.3183 10.6425 ^10.0000 10.0845 ^10.0000 10.0488 Dividend Option 10.1694 10.3031 9.9819 9.9772 9.9943 ^10.0000 10.0845 ^10.0000 10.0488 Dividend (Quarterly) Option - - - - - - - - - Dividend (Half Yearly) Option - - - - - - - - - Dividend (Annual) Option - - - - - - - - - Dividend (Monthly) Option - - - - - - - - - (Plan - B) Growth Option - - - - - - - - - Dividend Option - - - - - - - - - Dividend (Quarterly) Option - - - - - - - - - Dividend (Half Yearly) Option - - - - - - - - - Dividend (Annual) Option - - - - - - - - - Dividend (Monthly) Option - - - - - - - - - Net Income per unit *0.5377 0.8123 0.6733 0.7151 0.7733 *0.1277 1.2935 *0.0453 1.1072 Dividend per unit: Plan A June 29 2007 (others) - - - - - - - - - June 29, 2007 (I&H) - - - - - - - - - December 18, 2007 (others) - - - - - - - - - December 18, 2007 (I&H) - - - - - - - - - March 16, 2008 (others) - - - - - - - - - March 16, 2008 (I&H) - - - - - - - - - March 31, 2008 (others) - - - - - - - - - March 31, 2008 (I&H) - - - - - - - - - Plan B December 18, 2007 (others) - - - - - - - - - December 18, 2007 (I&H) - - - - - - - - - March 16, 2008 (others) - - - - - - - - - March 16, 2008 (I&H) - - - - - - - - - Transfer to reserves * - - - - - - - - - *(Including Unit Premium Reserve, Equalisation Reserve and Unrealised Appreciation Reserve) NAV at the end of the period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A)* Growth Option 10.3031 11.3003 10.3183 10.6425 11.7316 10.0845 11.0941 10.0488 11.1096 Dividend Option 10.3031 11.3003 9.9772 9.9943 11.0171 10.0845 11.0941 10.0488 11.1096 Dividend (Quarterly) Option - - - - - - - - - Dividend (Half Yearly) Option - - - -- - - - - - Dividend (Annual) Option - - - - - - - - - Dividend (Monthly) Option - - - - - - - - - (Plan - B) Growth Option - - - - - - - - - Dividend Option - - - - - - - - - Dividend (Quarterly) Option - - - - - - - - - Dividend (Half Yearly) Option - - - - - - - - - Dividend (Annual) Option - - - - - - - - - Absolute return - - - - Returns during the half year (absolute) 1.31% 4.03% -0.73% 0.05% 4.09% - 4.92% - 5.20% Bench mark performance (Absolute) 0.95% 3.79% 0.58% 0.95% 3.79% - 3.79% - 3.79% Returns since inception (Absolute) for schemes 3.03% - - - - 0.85% - 0.49% - which have not completed 1 year Bench mark performance (Absolute) for 2.37% - - - - 0.00% - 0.00% - schemes which have not completed 1 year Returns in case of schemes redeemed - - - - - - - - - - Since Inception (Absolute) Bench mark performance in case of schemes - - - - - - - - - redeemed - Since Inception (Absolute) CAGR ( since inception) - 7.47% 2.43% 3.03% 5.31% - 10.91% - 11.07% CAGR –(last 1 year) - 9.65% 2.83% 3.14% 10.19% - 9.98% - 10.53% Bench mark performance in case of schemes in - 6.24% 3.33% 3.52% 5.02% - 8.23% - 8.23% existence for more than 1 year - Since Inception Bench mark performance Last 1 year CAGR - 7.99% 3.30% 3.73% 7.99% - 8.23% - 8.23% CAGR –(last 2 years) - - - 3.92% 6.62% - - - - Bench mark performance Last 2 years CAGR - - - 3.51% 5.95% - - - - CAGR –(last 3 years) - - - - 5.53% - - - - Bench mark performance Last 3 years CAGR - - - - 5.06% - - - - Compounded Annualised yield in case of schemes - - - - - - - - - redeemed - Since Inception - CAGR Bench mark performance in case of schemes - - - - - - - - - redeemed - Since Inception - CAGR - Net Assets end of period (Rs. Crs.) 58.95 63.14 31.47 31.16 31.11 347.01 379.40 250.01 275.92 Ratio of Recurring Expenses to net assets - Plan A 0.33% 0.35% 0.55% 0.54% 0.55% 0.10% 0.09% 0.10% 0.09% Ratio of Recurring Expenses to net assets - Plan B - - - - - - - - - ^ For the schemes launched during the period, the NAV at the beginning of the period is considered as Rs. 10/- per unit. * Net Income per unit arrived does not include deferred revenue expenditure which is being ammortised.
    • 16 STATEMENT OF ADDITIONAL INFORMARION (SAI) Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC IDFC IDFC IDFC IDFC Fixed Maturity Fixed Maturity Fixed Maturity Fixed Fixed Yearly Series 4 Yearly Series 5 Yearly Series 6 Maturity Maturity (IDFC-FMP-YS4) (IDFC-FMP-YS5) (IDFC-FMP-YS6) Yearly Yearly Series 7 Series 8 (IDFC-FMP- (IDFC-FMP- YS7) YS8) Historical per Unit Statistics (Contd.,) Date of Allotment March March March March March March April April 31, 2007 31, 2007 31, 2007 31, 2007 31, 2007 31, 2007 20, 2007 30, 2007 March March March March March March March March 31, 2007 31, 2008 31, 2007 31, 2008 31, 2007 31, 2008 31, 2008 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the period (Plan - A) Growth Option ^10.0000 10.0336 ^10.0000 10.0070 ^10.0000 10.0067 ^10.0000 ^10.0000 Dividend Option ^10.0000 10.0336 ^10.0000 10.0070 ^10.0000 10.0067 ^10.0000 ^10.0000 Dividend (Quarterly) Option - - - - - - - - Dividend (Half Yearly) Option - - - - - - - - Dividend (Annual) Option - - - - - - - - Dividend (Monthly) Option - - - - - - - - (Plan - B) Growth Option - - - - - - - - Dividend Option - - - - - - - - Dividend (Quarterly) Option - - - - - - - - Dividend (Half Yearly) Option - - - - - - - - Dividend (Annual) Option - - - - - - - - Dividend (Monthly) Option - - - - - - - - Net Income per unit *0.0309 1.2417 *0.0071 1.0427 *0.0068 1.3407 0.9969 1.6646 Dividend per unit: Plan A June 29 2007 (others) - - - - - - - - June 29, 2007 (I&H) - - - - - - - - December 18, 2007 (others) - - - - - - - - December 18, 2007 (I&H) - - - - - - - - March 16, 2008 (others) - - - - - - - - March 16, 2008 (I&H) - - - - - - - - March 31, 2008 (others) - - - - - - - - March 31, 2008 (I&H) - - - - - - - - Plan B December 18, 2007 (others) - - - - - - - - December 18, 2007 (I&H) - - - - - - - - March 16, 2008 (others) - - - - - - - - March 16, 2008 (I&H) - - - - - - - - Transfer to reserves * - - - - - - - - *(Including Unit Premium Reserve, Equalisation Reserve and Unrealised Appreciation Reserve) NAV at the end of the period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A)* Growth Option 10.0336 11.0370 10.0070 11.0932 10.0067 11.0538 10.9664 10.8767 Dividend Option 10.0336 11.0370 10.0070 11.1200 10.0067 11.0652 10.9664 10.8767 Dividend (Quarterly) Option - - - - - - - - Dividend (Half Yearly) Option - - - - - - - - Dividend (Annual) Option - - - - - - - - Dividend (Monthly) Option - - - - - - - - (Plan - B) Growth Option - - - - - - - - Dividend Option - - - - - - - - Dividend (Quarterly) Option - - - - - - - - Dividend (Half Yearly) Option - - - - - - - - Dividend (Annual) Option - - - - - - - - Absolute return - - - - - - - - Returns during the half year (absolute) - 4.83% - 5.14% - 5.08% 4.95% 4.62% Bench mark performance (Absolute) - 3.79% - 3.79% - 3.79% 3.79% 3.79% Returns since inception (Absolute) for schemes which have 0.34% - 0.07% - 0.07% - 9.66% 8.77% not completed 1 year Bench mark performance (Absolute) for schemes which have 0.00% - 0.00% - 0.00% - 7.78% 7.56% not completed 1 year Returns in case of schemes redeemed - Since Inception (Absolute) - - - - - - - - Bench mark performance in case of schemes redeemed - - - - - - - - - Since Inception (Absolute) CAGR ( since inception) - 10.34% - 10.90% - 10.51% - - CAGR –(last 1 year) - 9.97% - 10.82% - 10.43% - - Bench mark performance in case of schemes in existence for - 8.23% - 8.23% - 8.23% - - more than 1 year - Since Inception Bench mark performance Last 1 year CAGR - 8.23% - 8.23% - 8.23% - - CAGR –(last 2 years) - - - - - - - - Bench mark performance Last 2 years CAGR - - - - - - - - CAGR –(last 3 years) - - - - - - - - Bench mark performance Last 3 years CAGR - - - - - - - - Compounded Annualised yield in case of schemes redeemed - - - - - - - - - Since Inception - CAGR Bench mark performance in case of schemes redeemed - - - - - - - - - Since Inception - CAGR Net Assets end of period (Rs. Crs.) 57.45 62.40 292.37 323.91 71.61 77.24 296.57 159.18 Ratio of Recurring Expenses to net assets - Plan A 0.10% 0.09% 0.10% 0.09% 0.10% 0.09% 0.31% 0.60% Ratio of Recurring Expenses to net assets - Plan B - - - - - - - - ^ For the schemes launched during the period, the NAV at the beginning of the period is considered as Rs. 10/- per unit. * Net Income per unit arrived does not include deferred revenue expenditure which is being ammortised.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 17 Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC IDFC IDFC IDFC IDFC IDFC Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity Yearly Series 9 Yearly Series 10 Yearly Series 11 Yearly Series 12 Yearly Series 17 Yearly Series 19 (IDFC-FMP (IDFC-FMP- (IDFC-FMP (IDFC-FMP (IDFC-FMP (IDFC-FMP -YS9) YS10) -YS11) -YS12) -YS17) -YS19) Historical per Unit Statistics (Contd.) Date of Allotment May September June September March March 25, 2007 4, 2007 11, 2007 27, 2007 27, 2008 27, 2008 March March March March March March 31, 2008 31, 2008 31, 2008 31, 2008 31, 2008 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the period (Plan - A) Growth Option ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 Dividend Option ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 Dividend (Quarterly) Option - - - - - - Dividend (Half Yearly) Option - - - - - - Dividend (Annual) Option - - - - - - Dividend (Monthly) Option - - - - - - (Plan - B) Growth Option - - ^10.0000 ^10.0000 ^10.0000 ^10.0000 Dividend Option - - ^10.0000 ^10.0000 ^10.0000 ^10.0000 Dividend (Quarterly) Option - - - - - - Dividend (Half Yearly) Option - - - - - - Dividend (Annual) Option - - - - - - Dividend (Monthly) Option - - - - - - Net Income per unit 0.8913 0.5542 0.7940 0.4372 0.0704 0.0360 Dividend per unit: Plan A June 29 2007 (others) - - - - - - June 29, 2007 (I&H) - - - - - - December 18, 2007 (others) - - - - - - December 18, 2007 (I&H) - - - - - - March 16, 2008 (others) - - - - - - March 16, 2008 (I&H) - - - - - - March 31, 2008 (others) - - - - - - March 31, 2008 (I&H) - - - - - - Plan B December 18, 2007 (others) - - - - - - December 18, 2007 (I&H) - - - - - - March 16, 2008 (others) - - - - - - March 16, 2008 (I&H) - - - - - - Transfer to reserves * - - - - - - *(Including Unit Premium Reserve, Equalisation Reserve and Unrealised Appreciation Reserve) NAV at the end of the period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A)* Growth Option 10.8648 10.5482 10.7746 10.4253 10.0716 10.0368 Dividend Option 10.8647 10.5482 10.7746 10.4253 10.0716 10.0368 Dividend (Quarterly) Option - - - - - - Dividend (Half Yearly) Option - - - - - - Dividend (Annual) Option - - - - - - Dividend (Monthly) Option - - - - - - (Plan - B) Growth Option - - 10.7746 10.4253 10.0716 10.0368 Dividend Option - - 10.7746 10.4253 10.0716 10.0368 Dividend (Quarterly) Option - - - - - - Dividend (Half Yearly) Option - - - - - - Dividend (Annual) Option - - - - - - Absolute return - - - - - - Returns during the half year (absolute) 4.86% 4.77% 4.75% 4.18% - - Bench mark performance (Absolute) 3.79% 3.79% 3.79% 3.79% - - Returns since inception (Absolute) for schemes which have 8.65% 5.48% 7.75% 4.25% 0.72% 0.37% not completed 1 year Bench mark performance (Absolute) for schemes which have 7.27% 4.45% 6.82% 3.82% -0.13% -0.13% not completed 1 year Returns in case of schemes redeemed - Since Inception (Absolute) - - - - - - Bench mark performance in case of schemes redeemed - - - - - - - Since Inception (Absolute) CAGR ( since inception) - - - - - - CAGR –(last 1 year) - - - - - - Bench mark performance in case of schemes in existence - - - - - - for more than 1 year - Since Inception Bench mark performance Last 1 year CAGR - - - - - - CAGR –(last 2 years) - - - - - - Bench mark performance Last 2 years CAGR - - - - - - CAGR –(last 3 years) - - - - - - Bench mark performance Last 3 years CAGR - - - - - - Compounded Annualised yield in case of schemes redeemed - - - - - - - Since Inception - CAGR Bench mark performance in case of schemes redeemed - - - - - - - Since Inception - CAGR Net Assets end of period (Rs. Crs.) 109.81 285.64 24.72 6.16 178.69 275.46 Ratio of Recurring Expenses to net assets - Plan A 0.40% 0.09% 0.14% 0.09% 0.13% 0.13% Ratio of Recurring Expenses to net assets - Plan B - - 0.15% 0.09% 0.13% 0.13% ^ For the schemes launched during the period, the NAV at the beginning of the period is considered as Rs. 10/- per unit. * Net Income per unit arrived does not include deferred revenue expenditure which is being ammortised.
    • 18 STATEMENT OF ADDITIONAL INFORMARION (SAI) Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC IDFC IDFC IDFC IDFC IDFC IDFC Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity Quarterly Yearly Quarterly Quarterly Quarterly Quarterly EMS Series Interval Fund Series Series Series Series Series I (IDFC-QIF) 20 25 26 27 28 (IDFC- (IDFC-FMP (IDFC-FMP (IDFC-FMP (IDFC-FMP (IDFC-FMP FMPEMS - -YS20) - QS25) -QS26) -QS27) -QS28) Series I) Historical per Unit Statistics Date of Allotment March February February March March December September 31, 2008 20, 2008 28, 2008 11, 2008 28, 2008 21, 2007 22, 2007 March March March March March March March 31, 2008 31, 2008 31, 2008 31, 2008 31, 2008 31, 2008 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the period (Plan - A) Growth Option ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 Dividend Option ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 ^10.0000 Dividend (Quarterly) Option - - - - - - - Dividend (Half Yearly) Option - - - - - - - Dividend (Annual) Option - - - - - - - Dividend (Monthly) Option - - - - - - - (Plan - B) Growth Option ^10.0000 - - - - ^10.0000 ^10.0000 Dividend Option ^10.0000 - - - - ^10.0000 ^10.0000 Dividend (Quarterly) Option - - - - - - - Dividend (Half Yearly) Option - - - - - - - Dividend (Annual) Option - - - - - - - Dividend (Monthly) Option - - - - - - - Net Income per unit 0.0084 0.1063 0.0895 0.0528 0.0112 0.2565 1.8516 Dividend per unit: Plan A June 29 2007 (others) - - - - - - - June 29, 2007 (I&H) - - - - - - - December 18, 2007 (others) - - - - - - 0.1626 December 18, 2007 (I&H) - - - - - - 0.1747 March 16, 2008 (others) - - - - - - 0.1689 March 16, 2008 (I&H) - - - - - - 0.1815 March 31, 2008 (others) - 0.0866 0.0730 - - - - March 31, 2008 (I&H) - 0.0930 0.0784 - - - - Plan B December 18, 2007 (others) - - - - - - 0.1626 December 18, 2007 (I&H) - - - - - - 0.1747 March 16, 2008 (others) - - - - - - 0.1711 March 16, 2008 (I&H) - - - - - - 0.1839 Transfer to reserves * - - - - - - - *(Including Unit Premium Reserve, - - - - - - - Equalisation Reserve and Unrealised Appreciation Reserve) NAV at the end of the period (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A)* Growth Option 10.0373 10.1092 10.0895 10.0528 10.0310 10.2512 10.4742 Dividend Option - 10.0030 10.0000 10.0528 10.0310 10.2512 10.0610 Dividend (Quarterly) Option - - - - - - Dividend (Half Yearly) Option - - - - - - Dividend (Annual) Option - - - - - - Dividend (Monthly) Option - - - - - - - (Plan - B) Growth Option 10.0373 - - - - 10.2512 11.0400 Dividend Option 10.0373 - - - - 10.2512 10.0583 Dividend (Quarterly) Option - - - - - - - Dividend (Half Yearly) Option - - - - - - - Dividend (Annual) Option - - - - - - - Absolute return - - - - - - - Returns during the half year (absolute) - - - - - - 4.53% Bench mark performance (Absolute) - - - - - - 3.45% Returns since inception (Absolute) for schemes 0.37% 1.09% 0.90% 0.53% 0.31% 2.51% 4.74% which have not completed 1 year Bench mark performance (Absolute) for N.A. 0.95% 0.75% 0.55% 0.09% 1.98% 3.56% schemes which hav not completed 1 year Returns in case of schemes redeemed - - - - - - - - Since Inception (Absolute) Bench mark performance in case of schemes - - - - - - - redeemed - Since Inception (Absolute) CAGR ( since inception) - - - - - - - CAGR –(last 1 year) - - - - - - - Bench mark performance in case of schemes in - - - - - - - existence for more than 1 year-Since Inception Bench mark performance Last 1 year CAGR - - - - - - - CAGR –(last 2 years) Bench mark performance Last 2 years CAGR - - - - - - - CAGR –(last 3 years) - - - - - - - Bench mark performance Last 3 years CAGR - - - - - - - Compounded Annualised yield in case of - - - - - - - schemes redeemed - Since Inception - CAGR Bench mark performance in case of schemes - - - - - - - redeemed - Since Inception - CAGR Net Assets end of period (Rs. Crs.) 322.73 363.07 191.18 77.64 247.73 6.61 10.73 Ratio of Recurring Expenses to net assets-Plan A 0.05% 0.19% 0.12% 0.19% 0.05% 0.19% 0.32% Ratio of Recurring Expenses to net assets-Plan B 0.05% - - - - 0.19% 0.22% ^ For the schemes launched during the period, the NAV at the beginning of the period is considered as Rs. 10/- per unit. * Net Income per unit arrived does not include deferred revenue expenditure which is being ammortised.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 19 Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC Liquidity Manager Plus (IDFC-LMP) Historical per Unit Statistics Date of Inception Date of Allotment March 27, 2006 March March March 31, 2006 31, 2007 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the year (Plan - A) Growth Option ^^1000.00 1001.0800 1074.3577 Dividend (Daily) Option ^^1000.00 1000.0000 1000.3128 Dividend (Weekly) Option - 1000.1000 1000.3128 Dividend (Monthly) Option - 1000.0000 1000.4132 (Plan - B) Growth Option - - - Dividend (Daily) Option - - - Dividend (Weekly) Option - - - Dividend (Periodic) Option - - - (Plan - C) Growth Option - - - Dividend (Daily) Option - - - Dividend (Weekly) Option - - - Dividend (Monthly) Option - - - Net Income per unit 0.7251 211.0845 120.0234 Dividend per unit: Plan A Monthly Option March 31, 2006 (others) 4.1259 - - March 31, 2006 (I&H) 4.4303 - - April 27, 2006 (others) - 4.1259 - April 27, 2006 (I&H) - 4.4303 - May 30, 2006 (others) - 4.6183 - May 30, 2006 (I&H) - 4.9591 - June 29, 2006 (others) - 4.2521 - June 29 2006 (I&H) - 4.5659 - July 31, 2006 (others) - 4.5766 - July 31 2006 (I&H) - 4.9144 - Aug 31, 2006 (others) - 4.6599 - Aug 31 2006 (I&H) - 5.0038 - Sept 29, 2006 (others) - 4.4420 - Sept 29 2006 (I&H) - 4.7698 - October 31, 2006 (others) - 4.9847 - October 31, 2006 (I&H) - 5.3526 - November 30, 2006 (others) - 4.8614 - November 30, 2006 (I&H) - 5.2202 - December 29, 2006 (others) - 4.7789 - December 29, 2006 (I&H) - 5.1316 - January 31, 2007 (others) - 5.6887 - January 31, 2007 (I&H) - 6.1086 - Febraury 28, 2007 (others) - 4.8532 - Febraury 28, 2007 (I&H) - 5.2114 - March 30, 2007 (others) - 5.7057 - March 30, 2007 (I&H) - 6.1267 - April 30, 2007 (others) - - 5.6829 April 30, 2007 (I&H) - - 5.6829 May 31, 2007 (others) - - 5.5744
    • 20 STATEMENT OF ADDITIONAL INFORMARION (SAI) Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC Liquidity Manager Plus (IDFC-LMP) Historical per Unit Statistics (Contd.,) Date of Inception Date of Allotment March 27, 2006 March March March 31, 2006 31, 2007 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the year May 31, 2007 (I&H) - - 5.5744 June 29 2007 (others) - - 3.8138 June 29 2007 (I&H) - - 3.8138 July 31 2007 (others) - - 4.3179 July 31 2007 (I&H) - - 4.3179 August 31 2007 (others) - - 4.7175 August 31 2007 (I&H) - - 4.7175 September 28, 2007 (others) - - 4.5197 September 28, 2007 (I&H) - - 4.5197 October 31, 2007 (others) - - 5.3252 October 31, 2007 (I&H) - - 5.3252 November 30, 2007 (others) - - 4.7985 November 30, 2007 (I&H) - - 4.7985 December 31, 2007 (others) - - 5.2282 December 31, 2007 (I&H) - - 5.2282 January 31, 2008 (others) - - 5.2521 January 31, 2008 (I&H) - - 5.2521 Febraury 29, 2008 (others) - - 4.7503 Febraury 29, 2008 (I&H) - - 4.7503 March 31, 2008 (others) - - 4.7956 March 31, 2008 (I&H) - - 4.7956 Transfer to reserves * - - - *(Including Unit Premium Reserve, Equalisation Reserve and Unrealised Appreciation Reserve) NAV at the end of the year (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A)* Growth Option 1001.0800 1074.3577 1158.1082 Dividend (Monthly) Option 1000.0000 1000.4132 1000.2000 Dividend (Daily) Option 1000.1000 1000.3128 1000.2100 Dividend (Weekly) Option 1000.0000 1000.3128 1000.8923 (Plan - B) Growth Option - - - Dividend (Daily) Option - - - Dividend (Weekly) Option - - - Dividend (Periodic) Option - - - (Plan - C) Growth Option - - - Dividend (Daily) Option - - - Dividend (Weekly) Option - - - Dividend (Monthly) Option - - - Absolute return - - - Returns during the half year (absolute) - 3.86% 3.90% Bench mark performance (Absolute) 3.24% 3.41% Returns since inception (Absolute) for schemes which have not completed 1 year 0.11% - - Bench mark performance (Absolute) for schemes which hav not completed 1 year 0.07% - - CAGR ( since inception) - 7.35% 7.56% CAGR –(last 1 year) - 7.32% 7.77% CAGR –(last 2 year) - - 7.55% Bench mark performance last 2 years CAGR - - 6.95% Bench mark performance in case of schemes in existence for more than 1 year - Since Inception - 6.40% 6.95% Bench mark performance Last 1 year CAGR - 6.39% 7.50% Net Assets end of period (Rs. Crs.) 647.60 1778.08 1713.47 Ratio of Recurring Expenses to net assets - Plan A 0.01% 0.34% 0.34% Ratio of Recurring Expenses to net assets - Plan B - - - Ratio of Recurring Expenses to net assets - Plan C - - - ^^ 'For IDFC-LM Plus face value is Rs. 1,000 per unit hence the NAV at the beginning of the half year period is considered as Rs. 1,000/- per unit. Range of dividend declared in DDRP for IDFC-LM Plus - Plan A for Corporates & Non-Corporates from April 01, 2007 till March 31, 2008 is Rs. 0.08238800 to 0.30810600 per unit and WDRP for Corporates & Non-Corporates from April 01, 2007 till March 31, 2008 is Rs. 0.7934 to Rs. 1.3665 per unit. (*Face Value per unit = Rs. 1000/-) DDRP WDRP Scheme Date Rate Date Rate Highest dividend declared IDFC-LM Plus- Plan A - Corporates & Non Corporates 21-Sep-07 0.23441600 4-May-07 1.3665 Lowest dividend declared IDFC-LM Plus- Plan A - Corporates & Non Corporates 16-Jun-07 0.08238800 15-Jun-07 0.7934
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 21 Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC Liquidity Manager (IDFC-LM) Historical per Unit Statistics Date of Inception Date of Allotment January 17, 2006 March March March 31, 2006 31, 2007 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the year (Plan - A) Growth Option ^10.0000 10.1260 10.7690 Dividend (Daily) Option ^10.0000 10.0005 10.0120 Dividend (Weekly) Option - 10.0010 10.0080 Dividend (Monthly) Option - 10.0015 10.0035 (Plan - B) Growth Option - - - Dividend (Daily) Option - - - Dividend (Weekly) Option - - - Dividend (Periodic) Option - - - (Plan - C) Growth Option - - - Dividend (Daily) Option - - - Dividend (Weekly) Option - - - Dividend (Monthly) Option - - - Net Income per unit 0.2457 0.3447 3.5797 Dividend per unit: Plan A Monthly Option March 31, 2006 (others) 0.0417 - - March 31, 2006 (I&H) 0.0447 - - April 27, 2006 (others) - 0.0330 - April 27, 2006 (I&H) - 0.0354 - May 30, 2006 (others) - 0.0407 - May 30, 2006 (I&H) - 0.0437 - June 29, 2006 (others) - 0.0340 - June 29 2006 (I&H) - 0.0365 - July 31, 2006 (others) - 0.0368 - July 31 2006 (I&H) - 0.0396 - Aug 31, 2006 (others) - 0.0383 - Aug 31 2006 (I&H) - 0.0411 - Sept 29, 2006 (others) - 0.0368 - Sept 29 2006 (I&H) - 0.0395 - October 31, 2006 (others) - 0.0412 - October 31, 2006 (I&H) - 0.0442 - November 30, 2006 (others) - 0.0412 - November 30, 2006 (I&H) - 0.0442 - December 29, 2006 (others) - 0.0447 - December 29, 2006 (I&H) - 0.0480 - January 31, 2007 (others) - 0.0541 - January 31, 2007 (I&H) - 0.0581 - Febraury 28, 2007 (others) - 0.0424 - Febraury 28, 2007 (I&H) - 0.0455 - March 30, 2007 (others) - 0.0506 - March 30, 2007 (I&H) - 0.0544 - April 30, 2007 (others) - - 0.0543 April 30, 2007 (I&H) - - 0.0543 May 31, 2007 (others) - - 0.0339 May 31, 2007 (I&H) - - 0.0339
    • 22 STATEMENT OF ADDITIONAL INFORMARION (SAI) Condensed Financial Information for the period ended March 31, 2008 (Contd.) IDFC Liquidity Manager (IDFC-LM) Historical per Unit Statistics (Contd.,) Date of Inception Date of Allotment January 17, 2006 March March March 31, 2006 31, 2007 31, 2008 (In Rs./-) (In Rs./-) (In Rs./-) NAV at the beginning of the year June 29 2007 (others) - - 0.0233 June 29 2007 (I&H) - - 0.0233 July 31 2007 (others) - - 0.0170 July 31 2007 (I&H) - - 0.0170 August 31 2007 (others) - - 0.0281 August 31 2007 (I&H) - - 0.0281 September 28, 2007 (others) - - 0.0341 September 28, 2007 (I&H) - - 0.0341 October 31, 2007 (others) - - 0.0356 October 31, 2007 (I&H) - - 0.0356 November 30, 2007 (others) - - 0.0412 November 30, 2007 (I&H) - - 0.0412 December 31, 2007 (others) - - 0.0453 December 31, 2007 (I&H) - - 0.0453 January 31, 2008 (others) - - 0.0599 January 31, 2008 (I&H) - - 0.0599 Febraury 29, 2008 (others) - - 0.0456 Febraury 29, 2008 (I&H) - - 0.0456 March 31, 2008 (others) - - 0.0398 March 31, 2008 (I&H) - - 0.0398 Transfer to reserves * - - - *(Including Unit Premium Reserve, Equalisation Reserve and Unrealised Appreciation Reserve) NAV at the end of the year (In Rs./-) (In Rs./-) (In Rs./-) (Plan - A)* Growth Option 10.1260 10.7690 11.4081 Dividend (Monthly) Option 10.0005 10.0120 10.0010 Dividend (Daily) Option 10.0010 10.0080 10.0125 Dividend (Weekly) Option 10.0015 10.0035 10.0067 (Plan - B) Growth Option - - - Dividend (Daily) Option - - - Dividend (Weekly) Option - - - Dividend (Periodic) Option - - - (Plan - C) Growth Option - - - Dividend (Daily) Option - - - Dividend (Weekly) Option - - - Dividend (Monthly) Option - - - Absolute return - - - Returns during the half year (absolute) - 3.51% 3.45% Bench mark performance (Absolute) - 3.24% 3.41% Returns since inception (Absolute) for schemes which have not completed 1 year 1.26% - - Bench mark performance (Absolute) for schemes which have not completed 1 year 1.08% - - Bench mark performance in case of schemes in existence for more than 1 year - Since Inception - 6.24% 6.81% CAGR ( since inception) - 6.37% 6.16% CAGR –(last 1 year) - 6.35% 5.92% Bench mark performance Last 1 year CAGR - 6.39% 7.50% CAGR –(last 2 years) - - 6.13% Bench mark performance Last 2 years CAGR - - 6.95% Net Assets end of period (Rs. Crs.) 1625.88 599.39 28.25 Ratio of Recurring Expenses to net assets - Plan A 0.06% 0.43% 0.55% Ratio of Recurring Expenses to net assets - Plan B - - - Ratio of Recurring Expenses to net assets - Plan C - - - Range of dividend declared in DDRP for IDFC-LM - Plan A for Corporates & Non-Corporates from April 01, 2007 till March 31, 2008 is Rs. 0.00011468 to 0.01037554 per unit and WDRP for Corporates & Non-Corporates from April 01, 2007 till March 31, 2008 is Rs. 0.0009 to Rs. 0.0201 per unit. (*Face Value per unit = Rs. 10/-). DDRP WDRP Scheme Date Rate Date Rate Highest dividend declared IDFC-LM - Plan A - Corporates & Non Corporates 4-Apr-07 0.01037554 6-Apr-07 0.0201 Lowest dividend declared IDFC-LM - Plan A - Corporates & Non Corporates 25-Jul-07 0.00011468 27-Jul-07 0.0009
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 23 II. HOW TO APPLY ? Application form for transactions (including subscription / (5) The Registrar and the AMC are shall effect the received redemption / switches) in the schemes of IDFC Mutual Fund would changes in the broker code within the reasonable period of be available at the offices of the Distributors, Official point of time from the time of receipt of written request from the acceptance of transactions, at the corporate office of the AMC investor at the designated collection centres / OPA. Decision and / or the offices of the Registrar. of the Registrar/AMC in this regard shall be final and Applications complete in all respects, may be submitted before acceptable to all. closure of the New Fund Offer Period / during the ongoing offer (6) All Unitholders who have currently invested through channel at specified centres / during the business hours at the Official distributors and intend to make their future investments point of acceptance of transactions, or may be sent by mail to the through the Direct route, are advised to complete the Registrar, Computer Age Management Services Ltd, A & B, procedural formalities prescribed by AMC from time to time. Lakshmi Bhawan, 609, Anna Salai, Chennai – 600 006 or at IDFC Asset Management Co. Pvt. Ltd., 90 M.G. Road , 1st floor, Fort, (7) List of Official Points of Acceptance is available on the website Mumbai 400 001. The AMC reserves the right to reject transaction of the Mutual Fund. www.idfcmf.com requests which do not have adequate information. The Mutual Fund need to use intermediaries such as post Kindly retain the acknowledgment slip initialed/stamped by the office, local and international couriers, banks and other collecting entity. intermediaries for correspondence with the investor and for making payment to the investor by cheque, drafts, warrants, Investors may note and follow the below-mentioned directions through ECS etc. The investor expressly agrees and authorizes while applying for the units of the schemes of IDFC Mutual the Mutual Fund to correspond with the investor or make Fund : payments to the investors through intermediaries including (1) In case where the Broker code is already printed in Application but not limited to post office, local and international couriers form / Transaction form / Purchase request form by the AMC and banks. / Registrar / Distributor : The Registrar, AMC, MF or any other agent or representative a. Where the Investor wishes to make an application of any of these entities (‘Mutual Fund’) may accept certain through broker / distributor, then the investor should transactions via facsimile or through any electronic mode countersign in the space provided for broker code (‘fax/electronic transactions’), subject to the investor fulfilling (printed) signifying acceptance. certain terms and conditions as stipulated by the AMC from b. Where the Investor wishes to apply directly (i.e. not time to time. Acceptance of fax/electronic transactions will through existing broker / distributor), then the investor be as per processes / methodologies permitted by SEBI or should strike off the broker code (printed) and should other regulatory authorities from time to time and will be write “Direct Applications” or “Not Applicable (N.A.)” solely at the risk of the investor using the fax/electronic and countersign the same transaction (‘Investor’) and the Mutual Fund shall not be in any way liable or responsible for any loss, damage, caused to (2) In case where the Broker code is not printed in Application the Investor directly or indirectly, as a result of the Investor form / Transaction form / Purchase request form : sending such fax, whether or not received by the Mutual a. In case of direct applications, the Investor should write Fund. The investor acknowledges that fax / electronic in the space provided for the broker code “Direct transaction is not a secure means of giving instructions / Application” or “Not Applicable (N.A.)” and countersign transaction requests and that the investor is aware of the risk the same. involved including those arising out of such transmission b. In case of application through broker, the investor should being inaccurate, illegible, having a lack of quality or clarity, countersign in space provide for the broker code (Broker garbled, distorted, not timely etc. and that the Investor’s code will be stamped by the broker). request to the Mutual Fund to act on any fax / electronic transaction is for the investor’s convenience and the investor (3) In case of either acceptance or rejection of broker code (for shall not be obliged or bound to act on the same. The the abovementioned purposes) the investors are required to Investor authorizes the Mutual Fund to accept and act on any provide their full signature. In case of joint applications, all / fax / electronic transaction which the Mutual Fund believes in any holder(s) can sign the Application form / Transaction form good faith to be given by the Investor and the Mutual Fund / Purchase request for the abovementioned purposes shall be entitled to treat any such fax / electronic transaction (4) In case of change in broker, the investor will be required to as if the same was given to the Mutual Fund under the strike off the old broker code and countersign near the new investor’s original signature. The Investor agrees that the broker code, before submitting the application form / security procedures adopted by the Mutual Fund may include transaction form / purchase from at the applicable collection signature verification, telephone callbacks or a combination centres / OPA (Official points of Acceptance). of the same. Callbacks may be recorded by tape recording
    • 24 STATEMENT OF ADDITIONAL INFORMARION (SAI) device and the Investor consents to such recording and agrees the Scheme approved by Securities and Exchange to co-operate with the recipient to enable confirmation of Board of India subject to conditions stated in para such fax / electronic transaction requests. The investor further 2) below, accepts that the fax / electronic transaction shall not be (b) to send such units/instruments out of India to their considered until time stamped appropriately as a valid place of residence or location as the case may be transaction request in the scheme in line with SEBI and Regulations. In consideration of the mutual fund from time to time accepting and acting on any fax / electronic transaction (c) to make payment to non-resident investors, on request received / believed to be received from the investor, repurchase of units or other instruments subject to the investor agrees to indemnify and keep indemnified the conditions in paragraph 3. AMC, IDFC Mutual Fund, Trustees, Sponsor and the group 2. The general permission granted herein to issue units is companies of the AMC from and all actions, claims, demands, subject to the following conditions : liabilities, obligations, losses, damages, costs (including (a) the Mutual Fund complies with terms and conditions without limitation, interest and legal fees) and expenses of stipulated by Securities and Exchange Board of India; whatever name (whether actual or contingent) directly or indirectly suffered or incurred sustained by or threatened (b) in respect of investment made on repatriation basis, against them. The AMC reserves the right to discontinue the the amount representing the investment is received above mentioned facilities at any point in time. by inward remittance through normal banking channel or by debit to NRE/FCNR account of the non- Mode of Payment -Resident Investors : resident investor maintained with an authorised dealer in India; Investors shall make payments for subscription to the Units of the Scheme at the bank collection centre / official points of acceptance (c) in respect of investment made on non-repatriation by local Cheque/Payorder/ Bank Draft, drawn on any bank branch, basis, the amount representing the investment is which is a member of Bankers Clearing House and located in the received by inward remittance through normal Offical points of acceptance of transactions where the application banking channel or by debit to the NRE/FCNR/NRO/ is lodged. NRSR account of the non-resident investor maintained with an authorised dealer in India. The Cheque/ DD/ Payorder should be drawn in favour of the relevant scheme / plan as per the instructions provided in the application 3. The general permission granted herein to repurchase units is subject to the following conditions : forms etc. (a) Where the investment is made on repatriation basis, • Please note that all cheques / DDs/ Payorders should be crossed the amount representing the dividend/interest and as account payee and ‘the DD/bank charges on the same will maturity proceeds may be remitted through normal have to be borne by the investor. However in case of outstation banking channel or credited to NRE/FCNR/NRO/NRSR demand drafts the bank charges for the same could be borne account of the non-resident investor. by the AMC in some schemes, the details of which will be communicated to the investors. (b) Where the investment is made by remittance from abroad through normal banking channel or by debit Payments by Cash, money orders, postal orders, Stockinvests to NRE/FCNR/NRO account of the non-resident and out-station and/ or post-dated cheques will not be accepted. investor on non-repatriation basis the interest/ dividend and maturity proceeds may be credited to Centres other than the places where there are Official Points of the NRO/NRSR account of the non-resident investor. Acceptance of Transactions as designated by the AMC from time to time are Outstation centres. Investors residing at outstation (c) Where the investment is made by debit to NRSR centres should send demand drafts drawn on any bank branch account of the non-resident investor the dividend/ which is a member of Bankers Clearing House payable at any of interest and maturity proceeds shall be credited to the places where an Official Points of Acceptance of Transactions the NRSR account of the non-resident investor. is located. ii) FIIs : NRIs, FIIs The Reserve Bank of India, in terms of its notification No. FERA.212/99-RB dated October 18,1999, has granted i) NRIs : general permission to Mutual Funds: The Reserve Bank of India, in terms of Notification No. 1. (a) to issue, units or similar instruments under Plans FERA.195/99-RB dated March 30, 1999 has granted approved by Securities and Exchange Board of India general permission to mutual funds referred to in clause to Foreign Institutional Investors (FIIs) subject to para (23D) of Section 10 of Income Tax Act, 1961: 2 below, 1. (a) to issue, to Non-Residents of Indian nationality or (b) to send such units/ instruments out of India to their origin (NRIs) units or similar other instruments of global custodians,
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 25 (c) to repurchase units or other instruments issued to Mode of payment on Non-Repatriation basis FIIs and make payment thereof, subject to para 3 In case of NRIs/ Persons of Indian origin applying for Units on a below. non-repatriation basis, payments may be made by local Cheques 2. The general permission granted herein to issue units or Payorder or Demand Drafts drawn on any bank branch which is subject to the following conditions :- is a member of Bankers Clearing House located in the Official points of acceptance of transactions where the application is (a) The Mutual Fund complies with terms and conditions accepted, out of Non-Resident Ordinary (NRO) accounts or by stipulated by the Securities and Exchange Board of way of a debit mandate on their NRO account with Standard India; Chartered Bank or such other banks with whom the fund has an (b) The amount representing the investment is received arrangement from time to time and is approved by RBI in India. by debit to the Special Non-Resident Rupee Account Payments received will be subject to fulfillment of conditions of the FII maintained with a designated bank, and/or submission of documents as per the operational procedure/ approved by the bank. guidelines as may be issued by the AMC from time to time. 3. The general permission granted herein to repurchase The AMC reserves the right to reject applications received by any units is subject to the condition that the amount mode of payment other than mentioned above. representing dividend/interest and maturity proceeds are APPLICATION UNDER POWER OF ATTORNEY/BODY credited to the Special Non-Resident Rupee Account. CORPORATE/REGISTERED SOCIETY/ TRUST/ PARTNERSHIP Explanation : Foreign Institutional Investor means an institution In case of an application under a Power of Attorney or by a limited established or incorporated outside India and registered with company, body corporate, registered society, trust or partnership, SEBI which proposes to make investment in India in securities, as etc., the relevant Power of Attorney or the relevant resolution or defined in SEBI (FII) Regulations, 1995. authority to make the application as the case may be, or duly Mode of Payment on Repatriation basis certified copy thereof, along with the memorandum and articles of association/ bye-laws must be lodged at the Registrar’s Office. In case of NRIs, and persons of Indian origin residing abroad, payment may be made by way of Indian Rupee drafts purchased JOINT APPLICANTS abroad or by way of cheques/ demand draft drawn on Non- In the event an Account has more than one registered owner, the Resident (External) (NRE) Accounts payable at par at Mumbai or first-named holder (as determined by reference to the original alternatively by way of a debit mandate on their Non-Resident Application Form) shall receive the Account Statement, all notices (External) (NRE) Account with Standard Chartered Bank or such and correspondence with respect to the Account, as well as the other banks with whom the fund has an arrangement from time proceeds of any redemption requests or dividends or other to time and is approved by RBI in India. Payments can also be distributions. In addition, such Unitholders shall have the voting made by means of rupee drafts payable at Mumbai and purchased rights, as permitted, associated with such Units, as per the out of funds held in NRE Accounts/ FCNR Accounts. Payments applicable guidelines. may also be made through Demand Drafts or other instruments Applicants can specify the ‘mode of holding’ in the Application permitted under the Foreign Exchange Management Act. Form. An applicant can hold units either ‘Singly’ or ‘Jointly’ or on Indian Rupee Drafts purchased abroad by NRIs/ PIOs will be subject the basis of ‘Anyone or Survivor’. In the case of holding specified to fulfillment of conditions and/ or submission of documents as as ‘Jointly’, redemptions and all other requests relating to per operational procedure/ guidelines as may be issued by the monetary transactions would have to be signed by all joint holders. AMC from time to time. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unitholders will have the power to make FIIs and International Multilateral Agencies may pay the redemption requests, without it being necessary for all the Subscription amount by direct remittance from abroad or out of Unitholders to sign. In case of valid application received without their Non Resident Rupee Accounts maintained with a designated indicating “Mode of holding”, it will be considered on “Anyone bank in India or as may be permitted by law. or Survivor” & processed accordingly. However, in all cases, the All cheques/ drafts should be made out in favour the scheme / proceeds of the redemption will be paid to the first-named holder. plan - NRI/ FII Subscription KYC Compliance The cheques/drafts should be crossed “Account Payee Only”. In Investors need to submit a completed Application Form for KYC case Indian Rupee drafts are purchased abroad or from FCNR/ Compliance along with all the prescribed documents listed in the NRE Account, a certificate from the Bank issuing the draft Form (formerly ‘MIN Form’), at any of the Point of Service (‘POS’). confirming the debit shall also be enclosed. The Form is available at our website (www.idfcmf.com) and at the
    • 26 STATEMENT OF ADDITIONAL INFORMARION (SAI) AMFI website (www.amfiindia.com). POS are the designated All investors (both individual and non-individual) can apply for a centres appointed by the Central Agency for receiving application KYC Compliance. However, applicants should note that minors forms, processing data and providing customers with evidence of cannot apply for a KYC Compliance and any investment in the KYC Compliance. List of and location of POS is available at name of minors should be along with a Guardian, who should obtain a KYC Compliance certificate for the purpose of investing www.amfiindia.com. On submission of application, documents with a Mutual Fund. In case of applicants / unit holders intending and information to the satisfaction of the POS, the Central Agency to apply for units / currently holding units and operating their will scrutinise the information and documents submitted by the Mutual Fund folios through a Power of Attorney (PoA) must ensure investor, and confirm the KYC Compliance. However, the Central that the issuer of the PoA and the holder of the PoA must mention Agency may cancel the evidence of KYC Compliance within 15 their respective KYC Compliance certificate at the time of working days from the date of allotment of provisional investment above the threshold. PoA holders are not permitted certification, in case of any deficiency in the document/ to apply for a KYC Compliance on behalf of the issuer of the PoA. information. Intimation on cancellation of KYC Compliance Separate procedures are prescribed for change in name, address certificate will be dispatched by the Central Agency to the investor and other KYC Compliance related details, should the applicant immediately. No communication will be sent to the investor if the desire to change such information. POS will extend the services KYC Compliance certificate as allotted is confirmed. of effecting such changes. Applicants / Unit holders may contact Investor Service Centers / Presently, it is mandatory for all applications for subscription of the registrar / distributors, for any additional information/ value of Rs.50,000/- and above to be KYC Compliant in case of all clarifications (Especially clarification on the process for KYC the applicants (guardian in case of minor) in the application for Compliance certification replacing MIN process). Please visit the subscription. The KYC Compliance certificate will be validated website of the fund, www.idfcmf.com and/ or www.amfiindia.com with the records of the Central Agency before allotting units. for any other related information. Applications for subscriptions of value of Rs.50, 000/- and above The AMC reserves the right to scrutinise/verify the application/ without a valid KYC Compliance can be rejected by the AMC / applicant and the source of the applicant’s funds and also reserves registrar. the right on the grounds of non compliance with the anti money In the event of any KYC Compliance Application Form (formerly laundering norms / know your customer norms, by the applicant MIN application form) being subsequently rejected for lack of to force redemption at the applicable NAV prevalent at the time information / deficiency / insufficiency of mandatory of such redemption, by redeeming the proceeds in favour of the applicant and/or undertaking such other action with the funds, documentation, the investment transaction may be cancelled and that may be prescribed under applicable law including redeeming the amount may be redeemed at applicable NAV, subject to the proceeds in favour of the source account from which the payment of exit load, wherever applicable. Such redemption funds had been invested in the mutual fund. In line with the proceeds may be despatched within a maximum period of 21 applicable regulations, the AMC may implement such anti money days from date of acceptance of application. The decision of AMC/ laundering measures and Know Your Customers norms, as it Registrar/ CDSL Ventures Ltd. in this regard will be considered may deem appropriate. The investors would be required to adhere final. to these norms.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 27 III. RIGHTS OF UNITHOLDERS OF THE SCHEME 1. Unit holders of the Scheme have a proportionate right in the - whenever required to do so if a requisition is made by beneficial ownership of the assets of the Scheme. three- fourths of the Unit holders of the Scheme. 2. When the Mutual Fund declares a dividend under the Scheme, - when the Trustee decides to wind up the Scheme or the dividend warrants shall be despatched within 30 days of the declaration of the dividend. Account Statement reflecting prematurely redeem the Units. the new or additional subscription as well as Redemption / - The Trustee shall ensure that no change in the Switch of Units shall be despatched to the Unit holder within fundamental attributes of any Scheme or the trust or 10 business days of the transaction date. Provided if a Unit holder so desires the Mutual Fund shall issue a Unit certificate fees and expenses payable or any other change which (non- transferable) within 30 days of the receipt of request would modify the Scheme and affects the interest of for the certificate. Unit holders, shall be carried out unless : 3. The Mutual Fund shall dispatch Redemption proceeds within (i) a written communication about the proposed 10 Business Days of receiving the Redemption request. change is sent to each Unit holder and 4. The Trustee is bound to make such disclosures to the Unit anadvertisement is given in one English daily holders as are essential in order to keep the unitholders newspaper having nationwide circulation as well as informed about any information known to the Trustee which in a newspaper published in the language of the may have a material adverse bearing on their investments. region where the Head Office of the Mutual Fund is 5. The appointment of the AMC for the Mutual Fund can be situated; and terminated by majority of the Directors of the Trustee Board or by 75% of the Unit holders of the Scheme. (ii) the Unit holders are given an option to exit at the 6. 75% of the Unit holders of a Scheme can pass a resolution to prevailing Net Asset Value without any Exit Load. wind- up a Scheme. 8. In specific circumstances, where the approval of unitholders 7. The Trustee shall obtain the consent of the Unit holders : is sought on any matter, the same shall be obtained by way - whenever required to do so by SEBI, in the interest of the of a postal ballot or such other means as may be approved by Unit holders. SEBI.
    • 28 STATEMENT OF ADDITIONAL INFORMARION (SAI) IV. INVESTMENT VALUATION NORMS FOR SECURITIES AND OTHER ASSETS The NAV of the Units of the Scheme will be computed by dividing last traded price of the previous day on the relevant exchange the net assets of the Scheme by the number of Units outstanding where the ADR/GDR/other foreign securities is listed and on the valuation date. The Fund shall value its investments traded. For instance, in case of GDR listed on Luxembourg according to the valuation norms, as specified in Schedule VIII of Stock Exchange, the last traded price on Luxembourg Stock the Regulations, or such norms as may be prescribed by SEBI Exchange shall be used for the purpose of valuation. In case from time to time. The broad valuation norms are detailed below. of GDRs listed on more than one foreign stock exchange, the scheme shall use the last traded price on LSE, in the absence These norms are indicated based on the current Regulations and of which last traded price on Luxembourg stock exchange the guidelines/instructions issued by SEBI i.e. MFD/CIR/8/92/2000 shall be used. If the GDR was not traded on Luxembourg dated September 18, 2000. In terms of SEBI letter no MFD/CIR/ stock exchange too, the last traded price on such other stock 8(A)/104/2000 dated October 3, 2000, the said guidelines on exchange as the AMC may deem appropriate shall be used valuation of non-traded and thinly traded debt securities came into force from December 1, 2000 and the same was modified for portfolio valuation, the intention being to provide fair vide letter no. MFD/CIR/14/088/2001 dated March 28, 2001 & valuation to the investors of the Scheme. In case of an ADR MFD/CIR/No.14/.442/2002 dated February 20, 2002. listed on more than one stock exchange the last traded price on NYSE shall be used for valuation. If the ADR is not traded 1) Traded Securities on NYSE, the last traded price on NASDAQ shall be used for (i) Traded securities (other than Government Securities) are valuation and if the ADR is not traded on NASDAQ too, the valued at the last quoted closing price on the National Stock last traded price on such other stock exchange as the AMC Exchange of India (NSE). If a particular security is not listed on may deem appropriate shall be used for portfolio valuation, the NSE, it is valued at the last quoted closing price on the the intention being to provide fair valuation to the investors stock exchange where it is principally traded (“another stock of the Scheme. exchange”). In the absence of prices on any exchange on the concerned (ii) When on a particular Valuation Day, a security listed on the valuation date, the price prevailing at the close of business NSE has not been traded on the NSE, the value at which it has on the previous date of trade in such ADR/GDR/other foreign been traded on another stock exchange is used. securities shall be used for valuation provided that such previous date is not more than 30 days prior to the date of When a equity security is not traded on any stock exchange valuation. on a particular valuation day, the value at which it was traded on the selected stock exchange or any other stock exchange, However, the AMC reserves the right to choose the price for as the case may be, on the earliest previous day may be used valuation of ADRs/GDRs/other foreign securities which may provided such date is not more than 30 days prior to the be different from the procedure given above depending upon Valuation Day. the prevailing circumstances, the intention being to provide fair valuation to the investors of the Scheme. (ii) All Government bonds are to be valued at the prices provided by CRISIL.COM on a daily basis. In the event of non availability Since the traded price would be in foreign currency the of the CRISIL.COM’s prices for any reason whatsoever prices conversion rate to INR would also be as of the previous day. released by FIMMDA will be used. When prices from both the In case such quotes are not available on any day, the foreign aforesaid sources are not available, Reuters or Bloomberg exchange rates as available for the immediately preceding price quotes (bid price quotes) will be used, failing which the day may be used. The AMC reserves the right to choose average of the indicative bid price quotes obtained from two appropriate rates for conversion of the last traded price for Government securities brokers will be used. the purpose of valuation, depending upon the prevailing Traded Treasury Bills (T-Bills) are to be valued at last traded circumstances, the intention being to provide fair valuation yield to maturity (YTM) for up to next 15 days and are to be to the investors of the Scheme. amortized at YTM on a straight-line basis from that level. Valuation policy for foreign debt instruments : Valuation – ADRs /GDR s/other foreign securities (equities) Where Debt Instruments are listed and regularly traded on Trades in ADRs/GDRs /other foreign securities shall be stock exchanges the last traded price at the close of business accounted for on the day following the trade on the relevant will be considered for valuation. In view of the time zone stock exchanges where such ADRs/GDRs/other foreign difference it is possible that the price taken for valuation securities are listed viz. New York Stock Exchange, NASDAQ, would be the previous day’s closing price. Since the traded London Stock Exchange (LSE), Luxembourg Stock Exchange price would be in foreign currency the conversion rate to INR etc. The valuation of such investments shall be done at the would also be as of the previous day.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 29 Where the securities are either not listed on stock exchanges expenditure and Debit Balance in P&L A/c] Divided or listed but not traded, but whose prices are transmitted via by No. of Paid up Shares. news agency such as Reuters / Bloomberg / Bridge, the prices (c) Average capitalisation rate (P/E ratio) for the industry at a predetermined time from a predetermined source (page) based upon either BSE or NSE data (which should be would be considered for the valuation. It will be the followed consistently and changes, if any noted with responsibility of the fund to ensure that the source is reliable proper justification thereof) shall be taken and and authentic for valuation purpose and reflects the fair prices. discounted by 75% i.e. only 25% of the Industry For Debt Instruments where regular market-making facility is average P/E shall be taken as capitalisation rate (P/E available, the bid price will be taken for valuation. The fund ratio). Earnings per share of the latest audited annual will procure tradable quotes from the market maker i.e. quotes accounts will be considered for this purpose. at which actual buying and selling can happen . The (d) The value as per the net worth value per share and communication for two-way quotes would be documented. the capital earning value calculated as above shall 2) Thinly Traded Securities / Non-Traded Securities / Unlisted be averaged and further discounted by 10% for Equity Securities illiquidity so as to arrive at the fair value per share. i) Thinly Traded Equity/Equity related securities (e) In case the EPS is negative, EPS value for that year shall be taken as zero for arriving at capitalised When trading in an equity / equity related security (such earning. as convertible debentures, equity warrants, etc.) in a (f) In case where the latest balance sheet of the company month is less than Rs. 5 lakh and the total volume is less is not available within nine months from the close than 50,000 shares, it shall be considered as a thinly of the year, unless the accounting year is changed, traded security and valued accordingly. the shares of such companies shall be valued at zero. Where a stock exchange identifies the “thinly traded” (g) In case an individual security accounts for more than securities by applying the above parameters for the 5% of the total assets of the scheme, an independent preceding calendar month and publishes/provides the valuer shall be appointed for the valuation of the required information along with the daily quotations, said security. the same can be used by the Fund. (iii) Unlisted Equity Shares If the share is not listed on the stock exchanges which provide such information, then it will be obligatory on Unlisted equity shares of a company shall be valued “in the part of the Fund to make its own analysis in line with good faith” on the basis of the valuation principles laid the above criteria to check whether such securities are down below : thinly traded which would then be valued accordingly. a) Based on the latest available audited balance sheet, In case trading in an equity security is suspended upto net worth shall be calculated as lower of (i) and (ii) 30 days, then the last traded price would be considered below : for valuation of that security. If an equity security is i. Net worth per share = [share capital plus free suspended for more than 30 days, then the AMC/Trustees reserves (excluding revaluation reserves) minus will decide the valuation norms to be followed and such Miscellaneous expenditure not written off or norms would be documented and recorded. deferred revenue expenditure, intangible assets and accumulated losses] divided by Number of (ii) Non-Traded Equity Securities Paid up Shares. When a security (other than debt and Government ii. After taking into account the outstanding securities) is not traded on any stock exchange for a warrants and options, Net worth per share shall period of 30 days prior to the Valuation Day, the scrip is again be calculated and shall be = [share capital treated as non-traded scrip. plus consideration on exercise of Option/ Non traded/ thinly traded equity securities shall be valued Warrants received/receivable by the Company “in good faith” by the asset management company on plus free reserves(excluding revaluation reserves) the basis of the valuation principles laid down below : minus Miscellaneous expenditure not written off or deferred revenue expenditure, intangible (a) Based on the latest available Balance Sheet, net worth assets and accumulated losses] divided by shall be calculated as follows : {Number of Paid up Shares plus Number of Shares (b) Net Worth per share = [share capital+ reserves that would be obtained on conversion/exercise (excluding revaluation reserves) - Miscellaneous of Outstanding Warrants and Options}
    • 30 STATEMENT OF ADDITIONAL INFORMARION (SAI) The lower of (i) and (ii) above shall be used for 4) Non-traded T-Bills with residual maturity up to 182 days (not calculation of net worth per share and for further traded for more than 15 days or one which would qualify as calculation in (c) below . a thinly traded security), will be valued on straight-line b) Average capitalisation rate (P/E ratio) for the industry amortization of last traded YTM or purchased YTM. Non- based upon either BSE or NSE data (which should be traded T-Bills with residual maturity greater than 182 days followed consistently and changes, if any, noted (not traded for more than 15 days or one which would qualify with proper justification thereof) shall be taken and as a thinly traded security), will be valued at the average of discounted by 75% i.e. only 25% of the Industry the indicative bid YTM obtained from two Government average P/E shall be taken as capitalisation rate (P/E security brokers failing which at prices provided by FIMMDA ratio). Earnings per share of the latest audited annual or REUTERS or Bloomberg price quotes. accounts will be considered for this purpose. 5) The non-convertible and convertible components of (c) The value as per the net worth value per share and convertible debentures and bonds shall be valued separately. the capital earning value calculated as above shall The non-convertible component would be valued on the same be averaged and further discounted by 15% for basis as would be applicable to a debt instrument. illiquidity so as to arrive at the fair value per share. The above methodology for valuation shall be subject to 6) Where an instrument has been bought on a ‘Repo’ basis, the following conditions : the instrument would be valued at the resale price after deduction of applicable interest upto the date of resale. i. All calculations as aforesaid shall be based on Where an instrument has been sold on a ‘Repo’ basis, audited accounts. adjustment would be made for the difference between the ii. In case where the latest balance sheet of the company repurchase price (after deduction of applicable interest up to is not available within nine months from the close date of repurchase) and the value of the instrument. If the of the year, unless the accounting year is changed, repurchase price exceeds the value of the instrument, the the shares of such companies shall be valued at zero. depreciation would be provided for, and if the repurchase ii. If the net worth of the company is negative, the price is lower than the value of the instrument, credit would share would be marked down to zero. be taken for the appreciation. iii. In case the EPS is negative, EPS value for that year 7) In respect of warrants to subscribe attached to instruments, shall be taken as zero for arriving at capitalised the warrants would be valued at the value of the share which earning. would be obtained on exercise of the warrant as reduced by iv. In case an individual security accounts for more than the amount which would be payable on exercise of the 5% of the total assets of the scheme, an warrant. A discount similar to the discount to be determined independent valuer shall be appointed for the in respect of convertible debentures shall be deducted to valuation of the said security. To determine if a account for the period, which must elapse before the warrant security accounts for more than 5% of the total assets can be exercised. of the scheme, it should be valued in accordance with the procedure as mentioned above on the date 8) Until they are traded, the value of “rights” shares shall be of valuation. calculated as : At the discretion of the AMC and with the approval of Vr = n ÷ m x (Pex - Pof) the trustees, an unlisted equity share may be valued at a Where Vr = Value of rights price lower than the value derived using the aforesaid methodology. n = no. of rights offered 3) While investments in call money, bills purchased under m = no. of original shares held rediscounting plan and short term deposits with banks shall Pex = Ex-rights price be valued at cost plus accrual, other money market instruments shall be valued at the yield at which they are Pof = Rights Offer Price currently traded. For this purpose, non-traded instruments, that is instruments not traded for a period of 7 days, will be Where the rights are not treated pari passu with the existing valued at cost plus interest accrued till the beginning of the shares, suitable adjustments shall be made to the value of Valuation Day plus the difference between the redemption the rights. Where it is decided not to subscribe for the rights value and the cost spread uniformly over the remaining but to renounce them and renunciations are being traded, maturity period of the instruments. the rights can be valued at the renunciation value.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 31 Valuation Of Non-Traded / Thinly Traded Securities : Step B (II)(A) NON-TRADED /THINLY TRADED DEBT SECURITIES A Matrix of spreads (based on the credit risk) is built for OF UPTO 182 DAYS TO MATURITY : marking up the benchmark yields. The matrix is built based on traded corporate paper on the wholesale debt segment As the money market securities are valued on the basis of of an appropriate stock exchange and the primary market amortization (cost plus accrued interest till the beginning of issuances. The matrix is restricted only to investment grade the day plus the difference between the redemption value corporate paper. and the cost spread uniformly over the remaining maturity period of the instruments) a similar process should be Step C adopted for non-traded debt securities with residual maturity The yields as calculated above are Marked-up/Marked-down of upto 182 days, in the absence of any other standard for illiquidity risk. benchmarks in the market. Debt securities purchased with Step D residual maturity of upto 182 days are to be valued at cost (including accrued interest till the beginning of the day) plus a. Construction of Risk-Free Benchmark the difference between the redemption value (inclusive of Using Government of India dated securities, the interest) and cost spread uniformly over the remaining Benchmark shall be constructed as below: maturity period of the instrument. In case of a debt security with maturity greater than 182 days at the time of purchase, METHODOLOGY the last valuation price plus accrued interest should be used • Government of India Dated securities will be grouped instead of purchase cost. All other non-traded Non into the following duration buckets viz., 0.5-1 year, Government debt instruments shall be valued using the 1-2 years, 2-3 years, 3-4 years, 4-5 years, 5-6 years method suggested below. and greater than 6 years and the volume weighted yield would be computed for each bucket. (II)(B) NON-TRADED/ THINLY TRADED DEBT SECURITIES Accordingly, there will be a benchmark YTM for each OF OVER 182 DAYS TO MATURITY : duration bucket. These duration buckets may be For the purpose of valuation, all Non-Traded Debt Securities changed to reflect the market value more closely by would be classified into “Investment grade” and “Non- any agency suggested by AMFI giving benchmark Investment grade” securities based on their credit ratings. yield/matrix of spreads over benchmark yield. The non-investment grade securities would further be The benchmark as calculated above will be set classified as “Performing” and “Non Performing” assets. weekly, and in the event of any change in the Reserve • All Non Government investment grade debt securities, Bank of India (RBI) policies affecting interest rates classified as not traded, shall be valued on yield to maturity during the week, the benchmark will be reset to basis as described below. reflect any change in the market conditions. • All Non Government non investment grade performing Note : The concept of duration over tenor has been debt securities would be valued at a discount of 25% to chosen in order to capture the reinvestment risk. It is the face value. intended to gradually move towards a methodology that incorporates the continuous curve approach for • All Non Government non-investment grade non- valuation of such securities. However, in view of the performing debt securities would be valued based on current lack of liquidity in the corporate bond the provisioning norms. markets, a continuous curve approach to valuation The approach in valuation of non-traded debt securities is would be necessarily based on limited data points, based on the concept of using spreads over the benchmark and this would result in out of line valuations. As an rate to arrive at the yields for pricing the non-traded security. interim methodology therefore it is proposed that the Duration Bucket approach be adopted and The Yields for pricing the non-traded debt security would be continuously tracked in order to fine tune the arrived at using the process as described: duration buckets on a periodic basis. Over the next Step A few years it is expected that with the deepening of the secondary market trading, it would be possible A Risk Free Benchmark Yield is built using the government to make a gradual move from the Duration Bucket securities (GOI Sec) as the base. GOI Secs are used as the approach towards a continuous curve approach. benchmarks as they are traded regularly, free of credit risk, and traded across different maturity spectra every week. The Yields so arrived at are used to price the portfolio
    • 32 STATEMENT OF ADDITIONAL INFORMARION (SAI) b. Building a Matrix of Spreads for Marking-up the c. Mark-up/ Mark-down Yield Benchmark Yield The Yields calculated would be marked-up/marked -down Mark-up for credit risk over the risk free benchmark YTM to account for the illiquidity risk, promoter background, as calculated in step a, will be determined using the finance company risk and the issuer class risk. As the trades of corporate debentures/bonds of different level of illiquidity risk would be higher for non-rated securities, the marking process for rated and non-rated ratings. All trades on appropriate stock exchanges during securities, would be differentiated as follows: the fortnight prior to the benchmark date will be used in building the corporate YTM and spread matrices. Initially (i) Adjustments for Securities rated by external these matrices will be built only for corporate securities rating agencies : of investment grade. The matrices are dynamic and the The Yields so derived out of the above methodology spreads will be computed every week. The matrix will be could be adjusted to account for risk mentioned built for all duration buckets for which the benchmark above. GOI matrix is built to effectively link the corporate matrix A discretionary discount/premium of upto +100/-50 with the GOI securities matrix. Accordingly : basis points for securities having a duration of upto • All traded paper (with minimum traded value of Rs. 2 years and upto +75/- 25 basis points for securities 1 crore) will be classified by their ratings and grouped having duration higher than 2 years will be permitted into 7 duration buckets; for rated securities, the to be provided for the above mentioned types of most conservative publicly available rating will be risks. The rationale for the above discount structure used. is to take cognizance of the differential interest rate risk of the securities. This structure will be reviewed • For each rating category, average volume weighted periodically. yield will be obtained both from trades on the (ii) Adjustments for Internally Rated Securities : appropriate stock exchange and from the primary market issuances. To value an un-rated security, the fund manager has to assign an internal credit rating, which will be • Where there are no secondary trades on the used for valuation. Since un-rated instruments tend appropriate stock exchange in a particular rating to be more illiquid than rated securities, the yields category and no primary market issuances during would be marked-up by adding +50 basis points for the fortnight under consideration, then trades on securities having a duration of upto two years and the appropriate stock exchange during the 30 day +25 basis points for securities having duration of period prior to the benchmark date will be higher than two years to account for the illiquidity considered for computing the average YTM for such risk. rating category. Category Discretionary discount over benchmark yield • If the matrix cannot be populated using any or all of in basis points the above steps, then credit spreads from trades on appropriate stock exchange of the relevant rating Unrated Instruments Discretionary Discount of category over the AAA trades will be used to populate with duration upto upto +50 over and above the matrix. 2 years the mandatory Discount of +50 • In each rating category, all outliers will be removed Unrated Instruments Discretionary Discount for smoothening the YTM matrix. with duration over upto +50 over and above • Spreads will be obtained by deducting the YTM in 2 years the mandatory Discount of each duration category from the respective YTM of +25 the GOI securities. (iii) The benchmark yield/matrix of spreads over benchmark yield obtained from any agency • In the event of lack of trades in the secondary market suggested by AMFI (currently CRISIL) as a provider of and the primary market the gaps in the matrix would benchmark yield/matrix of spreads over benchmark be filled by extrapolation. If the spreads cannot be yield to mutual funds, must be applied for valuation extrapolated for the reason of practicality, the gaps of securities on the day on which the bench mark in the matrix will be filled by carrying the spreads yield/matrix of spreads over benchmark yield is from the last matrix. released by the aforesaid agency.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 33 Valuation of securities with Put/Call Options : 6) Repos The option embedded securities would be valued as follows: Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest upto date of resale. Securities with Call option: 7) Valuation of Derivative Products The securities with call option shall be valued at the lower of the value as obtained by valuing the security to final maturity i) The traded derivatives shall be valued at market price in and valuing the security to call option. conformity with the stipulations of sub clauses (i) to (v) of clause 1 of the Eighth Schedule to the Securities and In case there are multiple call options, the lowest value Exchange Board of India (Mutual Funds) Regulations, obtained by valuing to the various call dates and valuing to 1996 as amended by SEBI Circular No.MFD/CIR/8/92/ the maturity date is to be taken as the value of the instrument. 2000 and MFD/CIR/14/088/2001 dated September 18, Securities with Put option: 2000 and March 28, 2001 respectively. The securities with put option shall be valued at the higher ii) The valuation of untraded derivatives shall be done in of the value as obtained by valuing the security to final maturity accordance with the valuation method for untraded and valuing the security to put option. investments prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the Securities and Exchange In case there are multiple put options, the highest value Board of India (Mutual Funds) Regulations, 1996 as obtained by valuing to the various put dates and valuing to amended by SEBI Circular No.MFD/CIR/8/92/2000 and the maturity date is to be taken as the value of the MFD/CIR/14/088/2001 dated September 18, 2000 and instruments. March 28, 2001 respectively. Securities with both Put and Call option on the same day: In accordance with SEBI guidelines, the Fund enters into The securities with both Put and Call option on the same day derivative transactions in the form of Interest Rate would be deemed to mature on the Put/Call day and would Swaps for the purposes of hedging and portfolio be valued accordingly. balancing. 3) Asset backed securities RBI vide its circular no. MPD.BC.191/07.01.279/1999-2000 dated November 1, 1999 has permitted mutual funds to • Asset backed securities with a residual maturity over 182 enter into Interest Rate Swaps/Forward Rate Agreement for days and where the cash flows are variable are valued on hedging and portfolio balancing. As per RBI circular no the same basis as that for non-traded securities with MPD.BC.187/07.01.279/1999-2000 dated July 7, 1999 it residual maturity over 182 days. specifies that “The Swap that is accounted for like a hedge • Asset backed securities with a residual maturity upto should be accounted for on accrual basis except the swap 182 days and where cashflows are variable are valued on designated with an asset or liability that is carried at market the basis of amortisation, the last valued yield being the value or lower of cost or market value in the financial base for amortisation. statements. In that case the swap should be marked to market with the resulting gain or loss recorded as an adjustment to 4) Government Securities the market value of designated asset or liability.” Government securities are valued at prices obtained from As per the said circular, swaps less than 6 months to be CRISIL in accordance with the guidelines for valuation of amortised and more than six months has to be valued/marked securities for mutual funds issued by SEBI. to market. 5) Money Market Instruments (including Collateralised The valuation methods have not been prescribed either by Borrowing & Lending Obligation) RBI, SEBI or AMFI and as per Eighth Schedule of SEBI While investments in Call money, Bills purchased under Regulation, the security should be marked to market and the rediscounting scheme, Collateralised Borrowing & Lending Mutual Fund should adopt fair valuation methods. Obligation and short term deposits with banks shall be valued Valuation of Swaps : at cost plus accrual; other money market instruments shall be valued at the yield at which they are currently traded. A. Less than six months: Amortisation. Non-traded money market instruments are valued at cost/ B. More than 6 months : last valuation price (including accrued interest till the • The fixed and the floating rate sides have to be beginning of the day) plus the difference between the valued. redemption value (inclusive of interest) and cost / last valuation price, spread uniformly over the remaining maturity period • There are currently three swaps structures quoted of the instrument. in the market.
    • 34 STATEMENT OF ADDITIONAL INFORMARION (SAI) OIS (Overnight Interest Swaps) • Simple arithmetic average to be taken of the rest of MIFOR (Mumbai Implied Forward Overnight the quotes and this is to be taken as the benchmark Rate) The valuation guidelines as outlined above are as per INBMK (Indian Benchmark) prevailing Regulations and are subject to change from time to time in conformity with changes made by SEBI. • Use the Reuters benchmark curves for valuation. All expenses and incomes accrued up to the valuation Reuters MIOIS = Mid 3.45 P.M. fixation date shall be considered for computation of NAV. For for OIS swaps this purpose, major expenses like management fees and Reuters MIFOR = Mid 4.30 P.M. fixation other periodic expenses would be accrued on a day to for MIFOR swaps day basis. The minor expenses and income will be accrued Reuters MIOCS = Mid 5.00 P.M. fixation on a periodic basis, provided the non-daily accrual does for MIFOR swaps not affect the NAV calculations by more than 1%. • Fixed leg valuation : Any changes in securities and in the number of units be Fixed rate coupon to be discounted using the recorded in the books not later than the first valuation swap curve. date following the date of transaction. If this is not possible given the frequency of the Net Asset Value • Floating leg valuation : disclosure, the recording may be delayed upto a period Estimate the zero coupon curve based on the of seven days following the date of the transaction, benchmark par coupon curve provided that as a result of the non-recording, the Net Determine FRAs Asset Value calculations shall not be affected by more Estimate future cash flows on the floating leg than 1%. PV the same using the benchmark curve. In case the Net Asset Value of a scheme differs by more than 1%, due to non - recording of the transactions, the • Final value of the swap: Sum of principal value of investors or scheme/s as the case may be, shall be paid fixed leg and the principal value of the floating leg. the difference in amount as follows:- • Interest accrued: Sum of interest accrued on the fixed leg and interest accrued on the floating leg. (i) If the investors are allotted units at a price higher than Net Asset Value or are given a price lower than For valuation purposes we adopt the end of the day Net Asset Value at the time of sale of their units, they benchmarks released by Reuters for both OIS and shall be paid the difference in amount by the scheme. MIFOR. In the case of INBMK Reuters does not provide end of day benchmarks. Hence we need to (ii) If the investors are charged lower Net Asset Value at poll the market for benchmarks. End of day, at 5.00 the time of purchase of their units or are given higher P.M, available indicative quotes would be taken from Net Asset Value at the time of sale of their units, three market participants who can be polled for Bid asset management company shall pay the difference / Ask quotes for the available swap tenors. in amount to the scheme. The asset management • The highest and the lowest Bid / Ask to be eliminated company may recover the difference from the for each tenor. investors.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 35 V. TAX & LEGAL & GENERAL INFORMATION A. Taxation on investing in Mutual Funds the specific tax implications arising out of his or her or its participation in the various schemes of the Fund. As per the taxation laws in force as at the date of this document, some broad income tax implications of investing Implications of the Income-tax Act, 1961 as amended by in the units of the various schemes of the Fund are stated the Finance Act, 2008 below. The information so stated is based on the Fund’s (i) To the Mutual Fund understanding of the tax laws in force as of the date of this document. The Fund is a Mutual Fund registered with the Securities and Exchange Board of India and hence, is eligible for the benefits The information stated below is only for the purposes of of section 10(23D) of the Income-tax Act, 1961 (“the Act”). providing general information to the investors and is neither Accordingly, the income of the Fund is exempt from income tax. designed nor intended to be a substitute for professional tax advice. As the tax consequences are specific to each investor The Fund will receive all its income without any deduction of and in view of the changing tax laws, each investor is advised tax at source under the provisions of Section 196(iv) of the to consult his or her or its own tax consultant with respect to Act. a) Securities Transaction Tax (STT) The Mutual Fund is liable to pay securities transaction tax (STT) at prescribed rates on the value of transactions of purchase or sale of specified securities. The rates of STT are as under : Nature of Transaction Payable by Value on which tax shall be levied Rates (%) Delivery based purchase transaction in Purchaser Value at which shares / units are bought 0.125 equity shares or units of equity oriented fund entered in a recognized stock exchange Delivery based sale transaction in equity shares Seller Value at which shares / units are sold 0.125 or units of equity oriented fund entered in a recognized stock exchange Non-delivery based sale transaction in equity Seller Value at which shares / units are sold 0.025 shares or units of equity oriented fund entered in a recognised stock exchange. Transaction for sale of futures in securities, Seller Value at which futures are traded 0.017 entered in a recognised stock exchange Transaction for sale of an option in securities, Seller The option premium 0.017 entered in a recognised stock exchange (effective 1 June 2008) Transaction for sale of an option in securities, Purchaser The settlement price 0.125 where the option is exercised, entered in a recognised stock exchange (effective 1 June 2008) Sale of units of an equity oriented fund Seller Value at which units are sold 0.25 to the mutual fund For this purpose, an “equity oriented fund” is defined to mean : • such fund where the investible funds are invested by way of equity shares in domestic companies to the extent of more than 65 per cent of the total proceeds of such fund; and • which has been set up under a scheme of mutual fund specified under clause (23D) The percentage of equity shares holdings of such fund is required to be computed with reference to the annual average of the monthly averages of the opening and closing figures.
    • 36 STATEMENT OF ADDITIONAL INFORMARION (SAI) b) Income Distribution Tax holdings of such fund is required to be computed with reference to the annual average of the monthly averages No income distribution tax is payable by the Fund, in of the opening and closing figures. respect of schemes in the nature of equity oriented fund, in terms of section 115R of the Act, which deals with tax The benefit of exemption from income distribution tax is on income distributable to unitholders of mutual funds. available to both open ended and close ended equity oriented schemes. For this purpose, “equity oriented fund” is defined to mean, inter alia, a fund where the investible funds are In terms of section 115R of the Act, where the income is invested by way of equity shares in domestic companies distributed by a scheme other than an equity oriented to the extent of more than 65 per cent of the total fund, it is required to pay tax on income distributed by proceeds of such funds. The percentage of equity shares it, as under: Income distributed to Effective tax rate (%) Effective tax rate (%) (Money Market mutual fund (Others) or a Liquid fund) Individuals and Hindu Undivided 28.325 14.1625 Families (‘HUFs’) (tax rate of 25 per cent plus (tax rate of 12.5 per cent plus surcharge surcharge @ 10 per cent thereon @ 10 per cent thereon plus additional plus additional surcharge by way of surcharge by way of education cess at education cess at the rate of 3 the rate of 3 per cent on the income per cent on the income tax plus surcharge) tax plus surcharge) Persons other than individuals 28.325 22.66 and HUFs (tax rate of 25 per cent plus surcharge (tax rate of 20 per cent plus surcharge at the rate of 10 per cent thereon plus at the rate of 10 per cent thereon plus additional surcharge by way of additional surcharge by way of education cess at the rate of 3 per cent education cess at the rate of 3 per cent on the income tax plus surcharge) on the income tax plus surcharge) c) Service tax Computation of capital gain The Mutual Fund is liable for payment of service tax as Capital gains on transfer of units will be computed after recipient of services on various services availed by it. The taking into account the cost of their acquisition. While rate of service tax is 12.36 percent (tax rate of 10 percent calculating long-term capital gains, such cost will be plus education cess at 3 percent of the tax). indexed by using the cost inflation index notified by the (ii) To the Unit holders Government of India. a. Tax on Income Long-term capital gains In accordance with the provisions of section 10(35)(a) of Schemes in the nature of equity oriented fund the Act, income received by all categories of unit holders As per Section 10(38) of the Act, long-term capital gains in respect of units of the Fund will be exempt from arising from the sale of units of an equity oriented fund income-tax in their hands. entered into in a recognised stock exchange or sale of Exemption from income tax under section 10(35) of the such units of an equity oriented fund to the mutual fund Act would, however, not apply to any income arising would be exempt from income-tax, provided such from the transfer of these units. transaction of sale is chargeable to securities transaction b. Tax on capital gains tax. As per the provisions of section 2(42A) of the Act, a unit Companies are required to include such long term capital of a Mutual Fund, held by the investor as a capital asset, gains in computing the book profits and minimum is considered to be a short-term capital asset, if it is held alternate tax liability under section 115JB of the Act. for 12 months or less from the date of its acquisition by the unit holder. Accordingly, if the unit is held for a Schemes other than equity oriented fund period of more than 12 months, it is treated as a long- In respect of schemes other then equity oriented funds, term capital asset. the tax implications are as follows :
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 37 (i) As per section 112 of the Act, long-term capital gains gains is below the maximum amount not chargeable on transfer of units are liable to tax at the rate of 20 to tax1 , then the difference between the maximum per cent. Income tax on long-term capital gains on amount not chargeable to tax and total income transfer of units shall, however, be limited to 10 per cent of the gains computed without the excluding long-term capital gains, shall be adjusted benefit of cost indexation. from long-term capital gains. Therefore only the Further, in case of individuals/ HUFs, being residents, balance long term capital gains will be liable to where the total income excluding long-term capital income tax at the rate of 20 / 10 per cent. The tax as calculated above shall be increased by a surcharge as under : Type of person Surcharge (%) Company other than domestic company, with income exceeding Rs.10,000,000 in a year 2.5 Domestic company, firm and artificial juridical person referred to in section 2(31) (vii) of the Act 10 Individuals, HUFs, Association of Persons or Body of Individuals, whether incorporated or not, where income exceeds Rs. 10 lakhs in a tax year (April to March) 10 Individuals, HUFs, Association of Persons or Body of Individuals, whether incorporated or not, where income does not exceed Rs. 10 lakhs (April to March) Nil Surcharge is leviable on companies and firms, if their (iii) As per the provisions of section 115AD of the Act, total income is in excess of Rs 10,000,000 in a tax long-term capital gains on transfer of units arising year. to Foreign Institutional Investors (FIIs), being foreign companies, shall be liable to tax at the effective tax An additional surcharge, by way of education cess, rate of 10.5575 per cent (10 per cent tax plus 2.5 is payable at the rate of 3 per cent on the amount of per cent surcharge 4 thereon plus additional tax payable plus surcharge, if any, as calculated surcharge of 3 per cent by way of education cess on above. the tax plus surcharge). However, such gains shall (ii) As per the provisions of section 115AB of the Act, be computed without the benefit of cost indexation. long-term capital gains on transfer of units arising In case of long-term capital gains on transfer of units to specified overseas financial organisations being arising to Foreign Institutional Investors (FII) not being companies, on transfer of units purchased by them companies, tax shall be chargeable at the effective in foreign currency shall be liable to tax at an effective tax rate of 11.33 per cent (10 per cent tax plus 10 tax rate of 10.5575 per cent (10 per cent tax plus 2.5 per cent surcharge 5 thereon plus additional per cent surcharge 2 thereon plus additional surcharge of 3 per cent by way of education cess on surcharge of 3 per cent by way of education cess on the tax plus surcharge). the tax plus surcharge).However, such gains shall be computed without the benefit of cost indexation. Short-term capital gains In case of long-term capital gains on transfer of units Schemes in the nature of equity oriented fund arising to specified overseas financial organisations As per Section 111A of the Act, short-term capital being persons other than companies, tax shall be gains from the sale of unit of an equity oriented chargeable at the effective tax rate of 11.33 per cent fund entered into in a recognised stock exchange or (10 per cent tax plus 10 per cent surcharge3 thereon sale of such unit of an equity oriented fund to the plus additional surcharge of 3 per cent by way of mutual fund is taxed at 15 per cent effective 1 April education cess on the tax plus surcharge). 1 Effective 1 April 2008, the maximum amounts of total income, not 2 Assuming that the total income of unit holder is in excess of Rs. chargeable to tax would be as under : 10,000,000 in a tax year Type of person Maximum amount of income 3 Assuming that the total income of unit holder is in excess of Rs. not chargeable to tax 1,000,000 in a tax year Women below 65 years, being residents Rs. 180,000 4 Assuming that the total income of unit holder is in excess of Rs. 10,000,000 in a tax year Senior citizens, being residents Rs. 225,000 5 Assuming that the total income of unit holder is in excess of Rs. Other individuals and HUFs Rs. 150,000 1,000,000 in a tax year
    • 38 STATEMENT OF ADDITIONAL INFORMARION (SAI) 2008 (instead of the earlier rate of 10 per cent), Therefore only the balance short term capital gains provided such transaction of sale is chargeable to will be liable to income tax at the rate of 15 percent securities transaction tax. (effective 1 April 2008) plus surcharge, if applicable and education cess. The said tax rate would be increased by a surcharge of : Schemes other than equity oriented fund • 10 per cent in case of non-corporate Unit i Short-term capital gains arising to partnership holders (excluding partnership firms), where the firms and domestic companies, are taxable at total income exceeds Rs. 1,000,000; the rate of 33.99 per cent (30 per cent tax plus 10 per cent surcharge7 thereon plus additional • 10 per cent in case of resident corporate Unit surcharge of 3 per cent by way of education holders, and cess on the tax plus surcharge) • 2.5 per cent in case of non-resident corporate ii Short-term capital gains arising to FIIs, being unit holders. foreign companies, are taxable at 31.6725 per However, surcharge is leviable on companies and cent (30 per cent tax plus 2.5 per cent surcharge8 firms if their total income is in excess of on tax plus additional surcharge of 3 per cent Rs. 10,000,000. by way of education cess on the tax plus Further, an additional surcharge of 3 per cent by surcharge). way of education cess would be charged on amount Short-term capital gains arising to FIIs, other of tax inclusive of surcharge. than foreign companies, are taxed at the rate of Further, in case of individuals/ HUFs, being residents, 33.99 (30 per cent tax plus 10 per cent where the total income excluding short-term capital surcharge9 on tax plus additional surcharge of gains is below the maximum amount not chargeable 3 per cent by way of education cess on the tax to tax 6, then the difference between the current plus surcharge). maximum amount not chargeable to tax and total iii Short-term capital gains arising to individuals income excluding short-term capital gains, shall be and HUFs are taxable on progressive basis, as adjusted from short-term capital gains. per the slabs of income given below : In case of persons, other than women and senior citizens, being residents : Where total income for a tax year (April to March) Nil is less than or equal to Rs. 150,000 Where such total income is more than Rs. 150,000 but is 10 per cent of the amount by which the total income exceeds less than or equal to Rs. 300,000 Rs. 150,000 Where such total income is more than Rs. 300,000 Rs. 15,000 plus 20 per cent of the amount by which the total but is less than or equal to Rs. 500,000 income exceeds Rs. 300,000 Where such total income is more than Rs. 500,000 Rs. 55,000 plus 30 per cent of the amount by which the total income exceeds Rs. 500,000 6 Effective 1 April 2008, the maximum amounts of total income, not 7 Assuming that the total income of unit holder is in excess of Rs. chargeable to tax would be as under : 10,000,000 in a tax year Type of person Maximum amount of income not chargeable to tax 8 Assuming that the total income of unit holder is in excess of Rs. Women below 65 years, being residents Rs. 180,000 10,000,000 in a tax year Senior citizens, being residents Rs. 225,000 9 Assuming that the total income of unit holder is in excess of Rs. Other individuals and HUFs Rs. 150,000 1,000,000 in a tax year
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 39 In case of women below 65 years of age, being residents : Where total income for a tax year (April to March) is Nil less than or equal to Rs. 180,000 Where such total income is more than Rs. 180,000 10 per cent of the amount by which the total income exceeds but is less than or equal to Rs. 300,000 Rs. 180,000 Where such total income is more than Rs. 300,000 but is Rs. 12,000 plus 20 per cent of the amount by which the total less than or equal to Rs. 500,000 income exceeds Rs. 300,000 Where such total income is more than Rs. 500,000 Rs. 52,000 plus 30 per cent of the amount by which the total income exceeds Rs. 500,000 In case of senior citizens, (i.e. citizens above 65 years of age) being residents Where total income for a tax year (April to March) is Nil less than or equal to Rs. 225,000 Where such total income is more than Rs. 225,000 but 10 per cent of the amount by which the total income exceeds is less than or equal to Rs. 300,000 Rs. 225,000 Where such total income is more than Rs. 300,000 but Rs. 7,500 plus 20 per cent of the amount by which the total is less than or equal to Rs. 500,000 income exceeds Rs. 300,000 Where such total income is more than 500,000 Rs. 47,500 plus 30 per cent of the amount by which the total income exceeds Rs. 500,000 Surcharge at the rate of 10 per cent is leviable on individual/ HUF, if their total income is in excess of Rs. 1,000,000, in a tax year. An additional surcharge, by way of education cess, is payable at the rate of 3 per cent on the amount of tax payable plus surcharge, if any, as calculated above. iv The short-term capital gains arising to a local authority, being a resident, are taxed at the effective rate 30.90 percent (30 per cent tax plus additional surcharge of 3 per cent by way of education cess on the tax) v Short-term capital gains arising to a cooperative society, being a resident, are taxable on a progressive basis as under : Where total income for a tax year (April to March) is 10% of the total income less than or equal to Rs. 10,000 Where such total income is more than Rs. 10,000 but is less Rs. 1,000 plus 20 per cent of the amount by which the total than or equal to Rs. 20,000 income exceeds Rs. 10,000 Where such total income is more than Rs. 20,000 Rs. 3,000 plus 30 per cent of the amount by which the total income exceeds Rs. 20,000 Additional surcharge of 3 percent by way of education cess, is chargeable on the tax. vi Short-term capital gains arising to a foreign company (other than an FII) including overseas financial organizations covered under section 115AB of the Act and OCBs will be taxable at the effective tax rate of 42.23 per cent (40 per cent tax plus 2.5 per cent surcharge10 thereon plus additional surcharge of 3 percent by way of education cess on the tax plus surcharge). Non-residents In case of non-resident unit holder who is a resident of a country with which India has signed a Double Taxation Avoidance Agreement (which is in force) income tax is payable at the rates provided in the Act, as discussed above, or the rates provided in the such agreement, if any, whichever is more beneficial to such non-resident unit holder. 10 Assuming that the total income of unit holder is in excess of Rs. 10,000,000 in a tax year
    • 40 STATEMENT OF ADDITIONAL INFORMARION (SAI) Investment by Minors Exemption from long term capital gains Where sale / repurchase is made during the minority of In respect of long term capital gains arising from sale of the child, tax will be levied on either of the parents, units in respect of schemes other than equity oriented whose income is greater, where the said income is not fund schemes, exemption may be claimed as under: covered by the exception in the proviso to section 64(1A) As per the provisions of section 54EC of the Act, long- of the Act. When the child attains majority, such tax term capital gains arising on transfer of units shall be liability will be on the child. exempt from tax to the extent such capital gains are Losses arising from sale of units invested, within a period of six months of such transfer, in acquiring specified bonds and remain so invested as • As per the provisions of section 94(7) of the Act, specified. However, investment ceiling in the notified loss arising on transfer of units, which are acquired bonds has been restricted to Rs 50 lakhs per investor in within a period of three months prior to the record any financial year. date (date fixed by the Fund for the purposes of entitlement of the unit holder to receive the income Bonds to be issued by National Highways Authority of from units) and sold within a period of nine months India and the Rural Electrification Corporation Limited after the record date, shall not be allowed to the on or after 1 April 2008 and redeemable after three years would be eligible investments for this purpose, with extent of income distributed by the Fund in respect effect from 1 April 2008. of such units. c. Tax withholding on capital gains • As per the provisions of section 94(8) of the Act, where any units (“original units”) are acquired within Capital gains arising to a unit holder on repurchase of a period of three months prior to the record date units by the Fund should attract tax withholding as under: (date fixed by the Fund for the purposes of • No tax needs to be withheld from capital gains arising entitlement of the unitholder to receive bonus units) to a FII on the basis of the provisions of section and any bonus units are allotted (free of cost) based 196D of the Act. on the holding of the original units, the loss, if any, on sale of the original units within a period of nine • In case of non-resident unit holder who is a resident months after the record date, shall be ignored in of a country with which India has signed a double the computation of the unit holder’s taxable income. taxation avoidance agreement (which is in force) the Such loss will however, be deemed to be the cost of tax should be deducted at source under section 195 of the Act at the rate provided in the Finance Act of acquisition of the bonus units. the relevant year or the rate provided in the said • The long-term capital loss suffered on sale / agreement, whichever is beneficial to such non- repurchase of any units shall be available for set off resident unit holder. However, such a non-resident against long-term capital gains arising on sale of unit holder will be required to provide appropriate other assets and balance long-term capital loss shall documents to the Fund, to be entitled to the be carried forward separately for set off only against beneficial rate provided under such agreement. long-term capital gains in subsequent years. • No tax needs to be withheld from capital gains arising However, each unit holder is advised to consult his / to a resident unit holder on the basis of the Circular her or its own professional tax advisor before no. 715 dated 8 August 1995 issued by the CBDT. claiming set off of long-term capital loss arising on sale / repurchase of units of an equity oriented fund Subject to the above, the provisions relating to tax referred to above, against long-term capital gains withholding in respect of gains arising from the sale arising on sale of other assets. of units of the various schemes of the fund are as under : • Short-term capital loss suffered on sale / repurchase of any units shall be available for set off against Schemes in the nature of equity oriented fund both long-term and short-term capital gains arising • No tax is required is to be withheld from long term on sale of other assets and balance short-term capital capital gains arising from sale of units in equity loss shall be carried forward for set off against capital oriented fund schemes, that are subject to securities gains in subsequent years. transaction tax. • Carry forward of losses is admissible maximum upto • In respect of short-term capital gains arising to eight assessment years. foreign companies (including Overseas Corporate
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 41 Bodies), the Fund is required to deduct tax at source surcharge14 thereon plus additional surcharge of 3 at the effective tax rate of 15.836 percent per cent by way of education cess on the tax plus (15 per cent tax plus 2.5 per cent surcharge 11 surcharge) from long-term capital gains arising to thereon plus additional surcharge of 3 per cent by non-resident individual unitholders. way of education cess on the tax plus surcharge). • In respect of short-term capital gains arising to • In respect of short-term capital gains arising to non- foreign companies (other than FII’s and overseas resident individual unit holders, the Fund is required financial organisation but including OCBs), the Fund to deduct tax at source at the effective tax rate of is required to deduct tax at source at the rate of 16.995 per cent, (15 per cent tax plus 10 per cent 42.23 per cent (40 per cent tax plus 2.5 per cent surcharge thereon12 plus additional surcharge of 3 surcharge15 thereon plus additional surcharge of 3 per cent by way of education cess on the tax plus percent by way of education cess on the tax plus surcharge). surcharge). Schemes other than equity oriented funds • In respect of short-term capital gains arising to non- resident individual unit holders, the Fund is required • The Fund is required to withhold tax at the effective to deduct tax at source at the rate of 33.99 percent tax rate of 10.5575 per cent (10 per cent tax plus 2.5 (30 per cent tax plus 10 per cent surcharge16 thereon per cent surcharge 13 thereon plus additional plus additional surcharge of 3 percent by way of surcharge of 3 per cent by way of education cess on education cess on the tax plus surcharge). the tax plus surcharge) from long-term capital gains on units purchased in foreign currency arising to d. Wealth Tax non-resident unitholders, being specified overseas Units held under the Schemes of the Fund are not treated financial organizations, that are companies, in terms as assets within the meaning of section 2(ea) of the of section 196B of the Act. Wealth Tax Act, 1957 and therefore, not liable to wealth- • The Fund is required to withhold tax at the rate of tax. 22.66 per cent (20 per cent tax plus 10 per cent e. Securities Transaction Tax The investor is required to pay STT on the following transactions in respect of units of equity oriented schemes of the fund: Nature of Transaction Tax rate (%) Delivery based purchase transaction in units of equity oriented fund entered in a recognized stock exchange 0.125 Delivery based sale transaction in units of equity oriented fund entered in a recognized stock exchange 0.125 Non-delivery based sale transaction in units of equity oriented fund entered in a recognised stock exchange. 0.025 Sale of units of an equity oriented fund to the mutual fund 0.25 Value of taxable securities transaction in case of units shall be the price at which such units are purchased or sold. Rebate/ deduction on account of STT Effective 1 April 2008, securities transaction tax paid is allowable in the computation of business income. This is subject to the condition that such income from taxable securities transaction is included in computing such business income. Deduction on account of STT is henceforth not allowable as rebate under section 88 of the Act. 11 Assuming that the total income of the unit holder is in excess of 14 Assuming that the total income of unit holder is in excess of Rs. 10,000,000 in a tax year Rs. 1,000,000 in a tax year 12 Assuming that the total income of the unit holder exceeds 15 Assuming that the total income of unit holder is in excess of Rs. 1,000,000 in a tax year Rs. 10,000,000 in a tax year 13 Assuming that the total income of unit holder is in excess of 16 Assuming that the total income of unit holder is in excess of Rs. 10,000,000 in a tax year Rs. 1,000,000 in a tax year
    • 42 STATEMENT OF ADDITIONAL INFORMARION (SAI) Legal Information If the Fund or the AMC or the Trustee were to incur, or suffer any claim, demand, liabilities, proceedings or actions are filed or Nomination Facility: made or initiated against any of them in respect of or in connection In terms of SEBI Notification dated July 2, 2002 nomination can with the nomination, they shall be entitled to be indemnified be made only by individuals on their own behalf singly or jointly. absolutely for any loss, expenses, costs, and charges that any of If the units are held jointly, all joint unit holders will sign the them may suffer or incur absolutely from the investor’s estate. nomination form. No person other than an individual including but not limited to a Company, Body Corporate, PSU, AOP, BOI, Unclaimed redemption and dividend amounts Society, Trust, Partnership Firm, Karta of HUF, Banks, FIIs and SEBI has vide its circular dated November 24, 2000, asked Mutual holders of POA can nominate. Funds to follow the following guidelines : The Unit Holder/s can at the time an application is made or by The redemption and dividend amounts may be deployed by the subsequently writing to a Official point of acceptance of mutual funds in call money market or money market instruments transactions, request for a Nomination Form in order to nominate only and the investors who claim these amounts during a period one/more person/s (multiple nominations) to receive the Units of three years from the due date shall be paid at the prevailing upon his/ her death subject to the completion of the necessary Net Asset Value. The Fund would deploy the unclaimed formalities eg. Proof of the death of the Unit Holder, signature of redemption and dividend amount in the interest of the investors the nominee/s, furnishing proof of guardianship in case the in such instruments / securities which the AMC would feel nominee is/are minor/s, execution of Indemnity Bond of or such appropriate, from time to time. After a period of three years, this other documents as may be required from the nominee in favour amount can be transferred to a pool account and the investors of and to the satisfaction of the Fund, the AMC, or the Trustee. In can claim the amount at NAV prevailing at the end of the third case of multiple nominations investors to clearly indicate clearly year. The income earned on such funds can be used for the purpose the percentage of allocation/share in favour of each of the of investor education. It should be specifically noted that the nominees against their name and such allocation/share should AMC would make a continuous effort to remind the investors be in whole numbers without any decimals making a total of 100 through letters to take their unclaimed amounts. Further, the percent. investment management fee charged by the AMC for managing In the event of the Unitholders not indicating the percentage of unclaimed amounts shall not exceed 50 basis points. allocation/share for each of the nominees, the AMCs, by invoking Prevention of Money Laundering default option shall settle the claim equally amongst all the nominees. The decision of the AMC with respect to treatment of The Prevention of Money Laundering Act, 2002, the Rules issued nomination shall be final and binding on unitholders/nominees. there under and the guidelines / circulars pertaining to Anti Money Laundering, released by SEBI (AML Laws), require intermediaries, If the nominee is/are a minors, then the name and address of the including Mutual Funds, to interalia formulate and implement guardian nominee shall be provided. An NRI can be a nominee Client Identification Programme, verify and maintain the record subject to the Exchange Control Regulations from time to time. of identity and address(es) of investors etc. To facilitate uniform In terms of recent SEBI circular dated February 16, 2004, nomination can also be in favour of the Central Government, implementation of these guidelines, AMFI had circulated Client State Government, Local authority, any person designated by Identification implementation procedure to all the Mutual Funds. virtue of his office or a religious charitable trust. The nominee In order to ensure appropriate compliance with the AML Laws, to shall not be a trust (other than a religious or charitable trust), facilitate data capture and ensure easy and convenient submission society, body corporate, partnership firm, Karta of Hindu of documents by investors, the mutual fund industry has Undivided Family or a power of attorney holder. collectively entrusted this responsibility of collection of documents Nomination in respect of the Units stands rescinded upon the relating to identity and address and record keeping to an redemption of Units. Cancellation of nomination can be made independent agency (presently CDSL Ventures Limited) that will only by those individuals who hold units on their own behalf act as central record keeping agency (‘Central Agency’). As a token singly or jointly and who made the original nomination. On of having verified the identity and address and for efficient retrieval cancellation of the nomination the nomination shall stand of records, the Central Agency will issue appropriate rescinded and the AMC/Fund shall not be under any obligation acknowledgement to each investor who submits an application to transfer the units in favour of the nominee. and the prescribed documents to the Central Agency. Transfer of Units/ payment to the nominee of the sums shall be Investors who have obtained the acknowledgement from CDSL, valid and effectual against any demand made upon the Trust/ for having completed the Know Your Client (KYC) requirements AMC and shall discharge the Trust/ AMC of all liability towards can invest in the schemes of the mutual fund. Such evidence of the estate of the deceased Unit Holder and his/ her successors having completed KYC needs to be submitted by Investors to the and legal heirs, executors and administrators. Mutual Funds.
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 43 KYC Compliance Applicants / Unit holders may contact Investor Service Centers / the registrar / distributors, for any additional information/ Investors need to submit a completed Application Form for KYC clarifications (Especially clarification on the process for KYC Compliance along with all the prescribed documents listed in the Compliance certification replacing MIN process). Please visit the Form (formerly ‘MIN Form’), at any of the Point of Service (‘POS’). website of the fund, www.idfcmf.com and/ or www.amfiindia.com The Form is available at our website (www.idfcmf.com) and at the for any other related information. AMFI website (www.amfiindia.com). POS are the designated centres appointed by the Central Agency for receiving application The AMC reserves the right to scrutinise/verify the application/ forms, processing data and providing customers with evidence applicant and the source of the applicant’s funds and also reserves of KYC Compliance. List of and location of POS is available at the right on the grounds of non compliance with the anti money www.amfiindia.com. On submission of application, documents laundering norms / know your customer norms, by the applicant and information to the satisfaction of the POS, the Central Agency to force redemption at the applicable NAV prevalent at the time will scrutinise the information and documents submitted by the of such redemption, by redeeming the proceeds in favour of the investor, and confirm the KYC Compliance. However, the Central applicant and/or undertaking such other action with the funds, Agency may cancel the evidence of KYC Compliance within 15 that may be prescribed under applicable law including redeeming working days from the date of allotment of provisional the proceeds in favour of the source account from which the certification, in case of any deficiency in the document/ funds had been invested in the mutual fund. In line with the information. Intimation on cancellation of KYC Compliance applicable regulations, the AMC may implement such anti money certificate will be dispatched by the Central Agency to the investor laundering measures and Know Your Customers norms, as it may immediately. No communication will be sent to the investor if the deem appropriate. The investors would be required to adhere to KYC Compliance certificate as allotted is confirmed. these norms. Presently, it is mandatory for all applications for subscription of TRANSFER AND TRANSMISSION value of Rs.50,000/- and above to be KYC Compliant in case of all Units of the Schemes of IDFC Mutual Fund are presently not listed the applicants (guardian in case of minor) in the application for on any stock exchange and no transfer facility is provided. However, subscription. The KYC Compliance certificate will be validated the AMC may at its sole discretion list the Units under any one or with the records of the Central Agency before allotting units. more Schemes on one or more Stock Exchanges. On deciding to Applications for subscriptions of value of Rs.50, 000/- and above list, the AMC will make a suitable public announcement to that without a valid KYC Compliance can be rejected by the AMC / effect. registrar. If a person becomes a holder of the Units consequent to operation In the event of any KYC Compliance Application Form (formerly MIN of law, or upon enforcement of a pledge, the Fund will, subject application form) being subsequently rejected for lack of information to production of satisfactory evidence, effect the transfer, if the / deficiency / insufficiency of mandatory documentation, the transferee is otherwise eligible to hold the Units. Similarly, in investment transaction may be cancelled and the amount may be cases of transfers taking place consequent to death, insolvency redeemed at applicable NAV, subject to payment of exit load, wherever etc., the transferee’s name will be recorded by the Fund subject applicable. Such redemption proceeds may be despatched within a to production of satisfactory evidence. All such changes shall be maximum period of 21 days from date of acceptance of application. carried out in line with the applicable laws and the decision of the The decision of AMC/ Registrar/ CDSL Ventures Ltd. in this regard will AMC shall be considered final. be considered final. DURATION AND WINDING UP OF SCHEME All investors (both individual and non-individual) can apply for a The duration of the open ended / interval schemes of the Fund are KYC Compliance. However, applicants should note that minors perpetual while the close ended schemes have defined durations. cannot apply for a KYC Compliance and any investment in the The AMC, the Fund and the Trustee reserve the right to make name of minors should be along with a Guardian, who should such changes/ alterations to the Scheme (including the charging obtain a KYC Compliance certificate for the purpose of investing of fees and expenses) offered under its scheme information with a Mutual Fund. In case of applicants / unit holders intending documents / offer documents to the extent permitted by the to apply for units / currently holding units and operating their applicable Regulations. In case of close ended schemes, the Fund Mutual Fund folios through a Power of Attorney (PoA) must ensure reserves the right to extend the Scheme / Plan(s) beyond its that the issuer of the PoA and the holder of the PoA must mention redemption date in accordance with Regulations. In such an event their respective KYC Compliance certificate at the time of the Unitholder shall be given an option to either sell back the investment above the threshold. PoA holders are not permitted Units to the Fund or to continue in the Scheme / Plan(s). The Fund to apply for a KYC Compliance on behalf of the issuer of the PoA. could also give the investor the option to switch the repurchase Separate procedures are prescribed for change in name, address proceeds into any other eligible Scheme of the Mutual Fund and other KYC Compliance related details, should the applicant launched or in operation at that time. The extension of the period desire to change such information. POS will extend the services of the Plan(s) / Scheme beyond final redemption date/s or roll over of effecting such changes. of the Plan(s) / Scheme shall be in accordance with Regulations.
    • 44 STATEMENT OF ADDITIONAL INFORMARION (SAI) The Fund may also convert the Scheme after the final Redemption winding up, net assets available for distribution to the date into an open-end Scheme and this shall be in accordance Unitholders and a certificate from the auditors of the Fund. with the Regulations. • Notwithstanding anything contained hereinabove, the However, in terms of the Regulations, a Scheme may be wound application of the provisions of SEBI (Mutual Funds) up after repaying the amount due to the Unitholders : Regulations, 1996 in respect of disclosures of half yearly reports and annual report shall continue until winding up is 1. On completion of the Scheme or on expiry of such date completed or the Scheme ceases to exist. beyond final redemption date as may be decided by the Trustee : • After the receipt of the report referred to in item (vii) above, if SEBI is satisfied that all measures for winding up of the Scheme 2. On happening of any event, which in the opinion of the have been completed, the Scheme shall cease to exist. Trustee, requires the Scheme to be wound up, or SUSPENSION OF REDEMPTION / REPURCHASE OF UNITS AND 3. If seventy five percent (75%) of the Unitholders of the Scheme DIVIDEND DISTRIBUTION pass a resolution that the Scheme be wound up, or The Mutual Fund at its sole discretion reserves the right to 4. If SEBI so directs in the interest of the Unitholders. withdraw repurchase or switching of Units of the Scheme, Where the Scheme is so wound up, the Trustee shall give temporarily or indefinitely, if in the opinion of the AMC the general notice of the circumstances leading to the winding up of the market conditions are not favourable and /or suitable investment Scheme to : opportunities are not available for deployment of funds. However, 1. SEBI and the suspension of repurchase/switching either temporarily or indefinitely will be with the approval of the trustee. The AMC 2. in two daily newspapers with circulation all over India and in reserves the right in its sole discretion to withdraw the facility of one vernacular newspaper with circulation where the office switching out of the Scheme, temporarily or indefinitely. Further, of the Mutual Fund is situated. the AMC & Trustee may also decide to temporarily suspend On and from the date of the publication of notice of winding determination of NAV of the Scheme offered under this up, the Trustee or the Investment Manager, as the case may Document, and consequently redemption of Units, declaration be, shall : and distribution of dividend in any of the following events: 1. cease to carry on any business activities in respect of the 1. When one or more stock exchanges or markets, which provide Scheme so wound up; basis for valuation for a substantial portion of the assets of the Scheme are closed otherwise than for ordinary holidays. 2. cease to create or cancel Units in the Scheme; 2. When, as a result of political, economic or monetary events 3. cease to issue or redeem Units in the Scheme. or any circumstances outside the control of the Trustee and Procedure and manner of Winding up the AMC, the disposal of the assets of the Scheme is not reasonable, or would not reasonably be practicable without • The Trustee shall call a meeting of the Unitholders to approve being detrimental to the interests of the Unitholders. by simple majority of the Unitholders present and voting at the meeting for authorising the Trustee or any other person 3. In the event of a breakdown in the means of communication to take steps for the winding up of the Scheme. Provided used for the valuation of investments of the Scheme, without that a meeting shall not be necessary if the Scheme is wound which the value of the securities of the Scheme cannot be up at the end of the maturity period. accurately calculated. • The Trustee or the person authorised above, shall dispose of 4. During periods of extreme volatility of markets, which in the the assets of the Scheme concerned in the best interest of opinion of the AMC are prejudicial to the interests of the the Unitholders of the Scheme. Unitholders of the Scheme. • The proceeds of sale realised in pursuance of the above, 5. In case of natural calamities, strikes, riots and bandhs. shall be first utilised towards discharge of such liabilities as 6. In the event of any force majeure or disaster that affects the are due and payable under the Scheme, and after meeting normal functioning of the AMC or the Registrar. the expenses connected with such winding up, the balance 7. During the period of Book Closure. shall be paid to Unitholders in proportion to their respective interest in the assets of the Scheme, as on the date the 8. If so directed by SEBI. decision for winding up was taken. In the above eventualities, the time limits indicated above, for • On completion of the winding up, the Trustee shall forward processing of requests for redemption of Units and/or distribution to SEBI and the Unitholders a report on the winding up, of dividend will not be applicable. Further an order to purchase detailing the circumstances leading to the winding up, the units is not binding on and may be rejected by the Trustee, the steps taken for disposal of the assets of the Scheme before AMC or their respective agents until it has been confirmed in
    • STATEMENT OF ADDITIONAL INFORMARION (SAI) 45 writing by the AMC or its agents and payment has been received. also enter into ‘Repo/Reverse Repo’ transactions, as may be The suspension or restriction of repurchase/redemption facility permitted from time to time. Stock borrowing means the under the scheme shall be made applicable only after the approval borrowing of stock from another person or entity for a fixed of the Board of Directors of the Asset Management Company period of time, at a negotiated compensation. The securities and the Trustee and the details of the circumstances and borrowed will be returned to the lender on expiry of the stipulated justification for the proposed action shall be informed to SEBI in period. advance. BORROWING BY THE MUTUAL FUND C. General Information Under the Regulations, the Fund is allowed to borrow to meet its UNDERWRITING BY THE FUND temporary liquidity needs of the Fund for the purpose of repurchase, redemption of Units or payment of interest or dividend Subject to the Regulations, the Scheme may enter into to the Unitholders. Further, as per the Regulations, the Fund shall underwriting agreements only after the Fund obtains a certificate not borrow more than 20% of the Net Assets of the Scheme and of registration in terms of the Securities and Exchange Board of the duration of such borrowing shall not exceed a period of six India (Underwriters) Rules and Securities and Exchange Board of months. The Fund may raise such borrowings after approval by India (Underwriters) Regulations, 1993, authorising it to carry on the Trustee from any of its Sponsors/Associate/Group companies/ activities as underwriters. Commercial Banks in India or any other entity at market related The capital adequacy norms for the purpose of underwriting shall rates prevailing at the time and applicable to similar borrowings. be the net assets of the Scheme and the underwriting obligation The security for such borrowings, if required, will be as determined of the Scheme shall not at any time exceed the total net asset by the Trustee. Such borrowings, if raised, may result in a cost, value of the Scheme. which would be dealt with in consultation with the Trustees. SECURITIES LENDING AND BORROWING Till November 30, 2005, no borrowings had been made by the Fund. However during the months of December, 2005 and January, Subject to the SEBI Regulations, the Mutual Fund may, engage in 2006 there were borrowing in IDFC Cash Fund (IDFC-CF) for Securities Lending. Such investments shall be made when in view meeting the redemption requirements. of the Fund Manager, such investments could provide reasonable returns commensurate with risks associated with such investments No Borrowings were made from the month of February 2006 till February 2007.During the month of March 2007, there were and shall be made in accordance with the investment objective of borrowing in IDFC Liquidity Manager Plus (IDFC-LMP) for meeting the Scheme. Securities Lending means the lending of Securities redemption requirements. No borrowings were made during the to another person or entity for a fixed period of time, at a months of April to December 2007. During the month of January negotiated compensation in order to enhance returns of the 2008, there were borrowings in IDFC Floating Rate Fund – Long portfolio. The securities lent will be returned by the borrower on Term (IDFC-FRF-LT) for meeting the redemption requirements. No the expiry of the stipulated period. The lending transactions may borrowings were made from February 2008 to June, 2008. require procurement of collateral which would exceed in value, the value of the securities lent. The collateral can be in the form of Inter-Scheme Transfer of Investments : cash, bank guarantee, government securities or certificate of Transfers of investments from one scheme to another scheme in deposits or other securities as may be agreed. As with other modes the same mutual fund shall be allowed only if - of extensions of credit, there are risks inherent to securities lending, including the risk of failure of the other party, in this (a) Such transfers are done at the prevailing market price for case the approved intermediary, to comply with the terms of the quoted instruments on spot basis. agreement entered into between the lender of securities i.e. the Explanation: “spot basis” shall have same meaning as scheme and the approved intermediary. Such failure can result in specified by stock exchange for spot transactions. the possible loss of rights to the collateral put up by the borrower (b) The securities so transferred shall be in conformity with the of the securities, the inability of the approved intermediary to investment objective of the scheme to which such transfer return the securities deposited by the lender and the possible has been made. loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. Associate Transactions The Mutual Fund may not be able to sell such lent out securities 1. Investment in Group Companies and this can lead to temporary illiquidity. The AMC has till date not made investment in any of its the AMC with a view to protecting the interests of the investors, Group Companies. may increase exposure in stock lending activities as deemed fit IDFC Group Companies : IDFC Trustee Company Limited, from time to time. IDFC Investment Advisors Limited, IDFC Private Equity If permitted by SEBI under extant regulations/guidelines, the Company Limited, IDFC Project Equity Company Limited, IDFC scheme may also engage in stock borrowing. The Scheme may Capital Company Limited, IDFC PPP Trusteeship Company
    • 46 STATEMENT OF ADDITIONAL INFORMARION (SAI) Limited, IDFC Projects Limited, IDFC-SSKI Securities Limited, • Memorandum and Articles of Association of the AMC IDFC-SSKI Private Limited, IDFC-SSKI Stock Broking Private • Investment Management Agreement Limited, Feedback First Urban Infrastructure Development Company Limited, IDFC Asset Management Company • Trust Deed and amendments thereto, if any Limited, IDFC AMC Trustee Company Limited, IDFC Capital • Mutual Fund Registration Certificate (Singapore) Pte Limited. • Agreement between the Mutual Fund and the Custodian 2. Underwriting obligations with respect to issues of Associate Companies : • Agreement with Registrar and Share Transfer Agents The AMC has till date not entered into any underwriting • Consent of Auditors to act in the said capacity contracts in respect of any public issue made by any of its • Consent of Legal Advisors to act in the said capacity associate companies. • Securities and Exchange Board of India (Mutual Funds) 3. Subscription in issues lead managed by the Sponsor or any Regulations, 1996 and amendments from time to time of its associates : thereto. The AMC may subscribe to issues lead managed by the • Indian Trusts Act, 1882. Sponsor or any of its associates. Such subscriptions shall be in accordance with the applicable regulatory requirements. Investor Grievances Redressal Mechanism Disclosures pertaining to such subscriptions, wherever Investor grievances are normally received at the Corporate Office required, shall be disclosed appropriately to interalia, the of the AMC or at the official point of acceptance of transactions unitholders and trustees. or directly by the Registrar. All grievances will be forwarded to the 4. Dealings with Associate Companies Registrar for their necessary action. The complaints will be closely followed up with the Registrar to ensure timely redressal and The AMC may, from time to time, for the purpose of prompt investor service. conducting its normal business, use the services of the subsidiaries / group companies of its Sponsors and /or enter The status of complaints received into transaction with sponsor and other associates of AMC Period Complaints Complaints Complaints or sponsor. The AMC may utilise the services of these group received redressed pending companies and any other subsidiary or associate company of April 2005 to 4888 4888 NIL the Sponsors or the AMC established or to be established at March, 2006 a later date in case such an associate company is in a position April 2006 to 12949 12949 NIL to provide the requisite services to the AMC. The AMC will March 2007 conduct its business with the aforesaid companies on commercial terms and on arm’s length basis and at the then April 2007 to 3897 3897 NIL prevailing market prices to the extent permitted under the March 2008 applicable laws including the Regulations, after an evaluation April 2008 to 1081 960 121 of the competitiveness of the pricing offered by the associate June 2008 companies and the services to be provided by them. The AMC will, before investing in the securities of the group companies Notwithstanding anything contained in this Statement of of the Sponsor, evaluate such investments, the criteria for the Additional Information, the provisions of the SEBI (Mutual evaluation being the same as is applied to other similar Funds) Regulations, 1996 and the guidelines thereunder shall investments to be made under the Scheme. Investments under be applicable. the Scheme in the securities of the group companies will be Note: The Statement of Additional Information (SAI) subject to the limits under the Regulations. Services of the containing details of IDFC Mutual Fund, IDFC Asset group /associate companies may be used for broking, Management Company Private Limited and IDFC AMC investment and other advise, outsourcing of operational Trustee Company Private Limited has been approved by the activities etc. (not an exhaustive list of activities). Board of IDFC AMC Trustee Company Private Limited Transactions with associates / group companies / any services (formerly known as Standard Chartered Trustee Company availed from them, if carried out, will be as per the Applicable Private Limited) on June 16, 2008. Regulations and the limits prescribed there under the For and on behalf of the Board of Directors of Applicable Regulations. Appropriate disclosures, wherever IDFC Asset Management Company Private Limited required, shall be made by the AMC. Documents Available for Inspection Sd/- The following documents will be available for inspection at Naval Bir Kumar the office of the Mutual Fund at 1st Floor, 90 MG Road, Fort, Managing Director Mumbai – 400 001 during business hours on any day (excluding Saturdays, Sundays and public holidays) : Mumbai, dated July 25, 2008
    • IDFC AMC Offices Ahmedabad : Ground Floor, Zodiac Avenue, Opp. Mayor's Bunglow, Near Law Garden, Ahmedabad - 380 006. Tel.: 079-64505881/ 5857. Ahmedabad : Ground Floor, Zodiac Avenue, Opp. Mayor's Bunglow, Near Law Garden, Ahmedabad - 380 006. Tel.: 079-64505881/ 5857. Bangalore : Raheja Point, 2nd Floor, Magrath Road, Opp. Garuda Mall, Bangalore - 25. Tel.: 080-64501951/ 52, 66111504/ 05/ 06. Chandigarh : SCO 137 - 138, Sector 9C, Madhya Marg, Chandigarh - 160 017. Tel.: 0172-5071919/ 1918. Chennai : Maalavika Centre, Old no. 144/145, New No. 60, Kodambakkam High Road, Nungambakkam, Chennai - 600 034. Tel.: 044-39185409/ 10/ 11. Cochin : HDFC House, 1st Floor, Ravipuram Junction, Cochin - 682 015. Tel.: 0484-2358639. Coimbatore : Red Rose Plaza, 509, D.B. Road, R. S. Puram, Coimbatore - 641 002. Tel.: 0422-2542645, 2542678. Hyderabad : #6/ 3/ 1090, TSR Towers, Raj Bhavan Road, Somajiguda, Hyderabad - 500 082. Tel.: 040-55329924/ 25/ 27. Indore : 21/ 1, DM Tower, Race Course Road, Indore - 452 001. Tel.: 0731-4206927. Jaipur : G - 7, G - 8, Anukampa Towers Church Road, Jaipur - 302 001. Tel.: 0141-5105797, 5105798. Kanpur : Office No 214, 215, IInd Floor, KAN Chambers, 14/113, Civil Lines, Kanpur - 208 001. Tel: 0512-2331071, 2331119. Kolkata : Oswal Chambers, 1st Floor, 2 Church Lane, Kolkata - 700 001. Tel.: 033- 3024 9794/ 78/ 89/ 88/ 90. Lucknow : Narain Automobiles, 4 Shahnazaf Road, Lucknow - 226 001. Tel.: 0522-2200097. Ludhiana : SCO 16-17, Basement, Feroze Gandhi Market, Ludhiana - 141 001. Tel.: 0161-5022155, 5022156. Mumbai : 270, DN Road, Ground Floor, Cox Building, Fort, Mumbai - 1. Tel.: 022-66511022-26. Nagpur : 1st Floor, Narang Towers, 27, Palm Road, Civil Lines, Nagpur - 440 001. Tel.: 0712-6620714. New Delhi : 4th Floor, Narain Manzil, 23 Barakhamba Road, New Delhi - 110 001. Tel.: 011-41513040, 41513041, 41513042. Patna : Bhagwati Dwarka Arcade, Plot No 830 P, Patna - 800 001. Telefax - 0612-2223172. Pune : 1st Floor, Dr. Herekar Park Building, Next to Kamala Nehru Park, Off. Bhandarkar Road, Pune – 411 004. Tel: 020-66020965 Rajkot : Business Empire, 5 Jagnath Plot Corner, Gymkhana Road, Rajkot - 360 001. Tel. 0281-6626012. Surat : C K Tower, 1st Floor, Near Sargam Shopping Centre, Parle Point, Surat - 7. Tel. 0261-2258330. Vadodara : Ground Floor, Akash Ganga Complex, Adjacent to Vanijya Bhavan, Race Course Circle, Vadodara - 390 007. Tel.: 0265 - 6620919/ 939. Sponsor Registrar Infrastructure Development Finance Company Limited (IDFC) Computer Age Management Services Private Limited Registered Office: Ground floor, 178/10, Kodambakkam High Road, ITC Centre, 3rd Floor, Opposite Hotel Palm Grove, Numgambakkam, Chennai 600 034 760, Anna Salai, Tel. + 91 - 44 - 2828 3606/ 07 Chennai - 600 002. Registration No. INR 000002813 Trustee Custodian IDFC AMC Trustee Company Private Limited (IDFC ATC) Deutsche Bank AG 90 M G Road, Fort, Mumbai 400 001 Kodak House, 222 D N Road, Fort, Mumbai 400 001 Investment Manager Auditors IDFC Asset Management Company Private Ltd. (IDFC AMC) BSR & Co Registered & Corporate Office: KPMG House, Kamala Mills Compound 90 M G Road, Fort, Mumbai 400 001 448, Senapati Bapat Marg, Lower Parel, Mumbai 400 013 Offices of Registrar, Computer Age Management Services Private Limited l Ahmedabad : 402-406, 4th Floor - Devpath Building, Off C G Road, Behind Lal Bungalow, Ellis Bridge, Ahmedabad - 380 006. Phone:079-30082468/ 30082469/ 30082470 l Bangalore : Trade Centre, 1st Floor 45, Dikensen Road (Next to Manipal Centre), Bangalore-560 042. Phone : 080-30574709/ 30574710/ 30578004/30578006 l Bhubaneswar: 101/ 5, Janpath, Unit – III , Near Hotel Swosti, Bhubaneswar - 751 001. Phone : 0674-325 3307/325 3308 l Chandigarh : Deepak Towers, SCO 154-155, 1st Floor, Sector 17-C, Chandigarh-160 017.Phone:0172-304 8720/304 8721/304 8722/3048723 l : Ground Floor Chennai No.178/10, Kodambakkam High Road, Opp. Hotel Palmgrove, Nungambakkam, Chennai -600 034 Phone : 044-3911 5563/ 3911 5565 /3911 5567/39115561 l : 40 / 9633 D, Veekshanam Road, Near International Hotel, Cochin-682 035. Phone : 0484-323 4658 /323 4662 l Cochin Coimbatore : Old # 66 New # 86, Lokamanya Street (West), Ground Floor, R.S.Puram, Coimbatore-641 002. Phone:0422-301 8000/301 8001. l : 4/2, Bengal Ambuja Housing Development Durgapur Ltd, Ground Floor, City Centre Dist - Burdwan, West Bengal, Durgapur-713 216 Phone : 0343/329 8890 /329 8891/6451419 l Goa : No.108, 1st Floor, Gurudutta Bldg, Above Weekender M G Road, Panaji (Goa) - 403 001. Phone : 0832/325 1755-325 1640 l Hyderabad : 102, First Floor , Jade Arcade, Paradise Circle, Secunderabad-500 003. Phone : 040-3918 2471/3918 2473 /3918 2468/3918 2469 l 101, Shalimar Corporate Centre, 8-B, South tukogunj, Opp.Greenpark, Indore : Indore-452 001. Phone : 0731-325 3692/325 3646 l: G-III, Park Saroj , Behind Ashok Nagar Police Station, R-7, Yudhisthir Marg ,C-Scheme. Jaipur-302 Jaipur 001Phone - 0141/326 9126/326 9128/5104373/5104372 l : G - 27,28 - Ground Floor, CITY CENTRE, 63/ 2, THE MALL, Kanpur-208 001. Phone : 0512- Kanpur 3918003/ 3918000/ 3918001/3918002 l “LORDS Building”, 7/1,Lord Sinha Road, Ground Floor, Kolkata-700 071. Phone : 033/32550760/3058 2285/ Kolkata: 3058 2303 / 30582281 l : Off # 4,1st Floor,Centre Court Building, 3/c, 5 - Park Road, Hazratganj, Lucknow-226 001. Phone : 0522/391 8000/391 8001/391 Lucknow 8002/ 3918003 l : U/ GF, Prince Market, Green Field, Near Traffic Lights, Sarabha Nagar Pulli, Pakhowal Road, Above Dr. Virdi’s Lab, P.O Model Town, Ludhiana Ludhiana-141 002. Phone : 0161-301 8000/301 8001 l : 86/71A, Tamilsangam Road, Madurai-625 001. Phone : 0452-325 1357/325 2468 l Madurai Mangalore : No. G 4 & G 5, Inland Monarch, Opp. Karnataka Bank, Kadri Main Road, Kadri, Mangalore-575 003. Phone : 0824-325 1357/325 2468 l : Rajabahdur Mumbai Compound, Ground Floor, Opp Allahabad Bank, Behind ICICI Bank 30, Mumbai Samachar Marg, Fort, Mumbai-400 023.Phone : 022-30282468/ 30282469/ 30282471/ 65257932 l : 145 Lendra, Behind Indus Ind Bank, New Ramdaspeth, Nagpur - 440 010. Phone : 0712-325 8275/2432447 l : 304-305 Nagpur New Delhi III Floor, Kanchenjunga Building, 18, Barakhamba Road, Cannaugt Place, New Delhi - 110 001. Phone : 011-3048 2471 /3048 1203 /3048 1205/ 30482468 l Patna : Kamlalaye Shobha Plaza (1st Floor), Behind RBI Near Ashiana Tower, Exhibition Road, Patna-800 001. Phone : 0612-325 5284/325 5285/ 3255286 lNirmiti Pune : Eminence, Off No. 6, I Floor, Opp Abhishek Hotel, Mehandale Garage Road, Erandawane, Pune - 411 004. Phone:020-30283005/ 30283003/30283000/30283001 l Office No 2 Ahura -Mazda Complex, First Floor, Sadak Street, Timalyawad, Nanpura, Surat - 395 001. Phone : 0261/326 2267/326 2468/326 0352 Surat : l : 109 - Silver Line, Besides world Trade Centre, Sayajigunj, Vadodara - 390 005 Phone :0265-301 8029/301 8031 l Vadodara Vijayawada: 40-1-68, Rao & Ratnam Complex, Near Chennupati Petrol Pump, M.G Road, Labbipet, Vijayawada - 520 010 Phone : 0866-329 9181/329 5202 l Visakhapatnam: 47/ 9 / 17, 1st Floor, 3rd Lane , Dwaraka Nagar, Visakhapatnam-530016. Phone : 0891-329 8397/329 8374/2554893 Please note our new investor service email id investor@idfcmf.com www.idfcmf.com