NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I

Transcription

1 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I Un-audited Financial Statements for the half year ended Contents Balance Sheet Revenue Account Accounting Policies and Notes to Accounts

2 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I UN-AUDITED BALANCE SHEET AS AT SEPTEMBER 30, 2015 Schedule Sources of funds Unitholders Funds Unit Capital 1 281,096,043 51,665,887 Reserves & Surplus 2 129,303,563 22,841,455 Current Liabilities and Provisions 3 37,030 1,122,213 Borrowings Total 410,436,636 75,629,555 Application of funds Investments (Long term and short term) 4 410,358,832 75,227,995 Deposits Other Current Assets 6 77, ,560 Total 410,436,636 75,629,555 (a) Net asset as per Balance Sheet (Schedule ) 410,399,606 74,507,342 (b) Number of units outstanding 28,109,604 5,166,589 (c) NAV per unit (a)/(b) (`) Significant accounting policies and notes to accounts 7 The notes referred to above form an integral part of the financial statements. For and on behalf of Board of Directors of HDFC Pension Management Company Limited Amitabh Chaudhry (Director) Vibha Padalkar (Director) Sumit Shukla Fagun Pancholi Nagesh Pai (Chief Executive Officer) (Chief Financial Officer) (Company Secretary) Place : Mumbai Date : October 14, 2015

3 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I UN-AUDITED REVENUE ACCOUNT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2015 Schedule Income & Gain Interest income Dividend income 2,792, ,111 Profit on sale/redemption of investments (other than inter-scheme transfer/sale) 1,121, ,186 Unrealised gain on appreciation in investments - 6,509,463 Total Income & Gain (A) 3,915,030 7,247,760 Expenses & Losses Unrealised losses in value of investments 20,661,042 - Loss on sale/redemption of investments(other than inter-scheme transfer/sale) 1,120,666 46,565 Management fees 16,573 32,358 Custodian fees 12,141 1,868 CRA fees 1,479, ,119 Less : recovered on sale of units on account of CRA Charges (1,479,031) (103,119) Total Expenses & Losses (B) 21,810,422 80,791 Net income/(expenditure) for the period (A-B = C) (17,895,392) 7,166,969 Balance at the beginning of the period 2,744,827 52,045 Net Unrealised appreciation in value of Investment transferred from/ (to) Unrealised Appreciation Reserve 11,635,875 (6,509,463) Balance at the end of the period carried to Balance Sheet (3,514,690) 709,551 Total income (including net unrealised gain/loss) expressed as a percentage of average net assets,calculated on a daily basis. Total expenditure expressed as a percentage of average net assets, calculated on a daily basis. Significant accounting policies and notes to accounts % 15.20% 0.01% 0.07% The notes referred to above form an integral part of the financial statements. For and on behalf of Board of Directors of HDFC Pension Management Company Limited Amitabh Chaudhry (Director) Vibha Padalkar (Director) Sumit Shukla Fagun Pancholi Nagesh Pai (Chief Executive Officer) (Chief Financial Officer) (Company Secretary) Place : Mumbai Date : October 14, 2015

4 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I Schedules forming part of the un-audited half yearly financial statements Schedule 1: Unit capital Initial capital Units Units Unit capital Opening balance 12,656, ,567,747 1,811,175 18,111,753 Additions during the period 15,825, ,252,012 3,449,573 34,495,728 Deduction during the period (372,372) (3,723,716) (94,159) (941,594) Closing balance 28,109, ,096,043 5,166,589 51,665,887 Schedule 2: Reserves and surplus Unit premium reserve Opening balance 54,403,305 2,028,179 Additions during the period 80,340,325 12,383,681 Deduction during the period (1,925,377) (356,686) Closing balance 132,818,253 14,055,174 Unrealised Appreciation Reserve Opening balance 11,635,875 1,567,267 Change in net unrealised appreciation in value of investments (11,635,875) 6,509,463 Closing balance - 8,076,730 Surplus/(deficit) in Revenue account Opening balance 2,744,827 52,045 Additions during the period - 657,506 Deduction during the period (6,259,517) - Closing balance (3,514,690) 709,551 General reserve* - - Appropriation account* - - Total 129,303,563 22,841,455 * The balances have been nil throughout the period Schedule 3: Current liabilities and provisions Current liabilities Sundry creditors 21,520 31,051 Contracts for purchase of investments - 991,674 Unit redemption payable 15,510 99,488 Provisions - - Total 37,030 1,122,213

5 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I Schedules forming part of the un-audited half yearly financial statements Schedule 4: Investments Equity shares 404,740,832 74,198,495 Debentures and bonds - - Others - Mutual funds 5,618,000 1,029,500 Total 410,358,832 75,227,995 Schedule 5: Deposits Deposits with scheduled banks - - Others - - Total - - Schedule 6: Other current assets Balances with banks in current / saving account ,680 Sundry debtors Contracts for sale of investments - 357,430 Others - Dividend receivable 77,072 17,776 Total 77, ,560

6 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I Schedule 7 Significant accounting policies & notes to accounts for the half year ended 1.1 Background HDFC Pension Management Company Limited ( the Company ) has been appointed as a Pension Fund Manager ( PFM ) by the Pension Fund Regulatory and Development Authority ("PFRDA") for the management of Pension Schemes under the National Pension System ( NPS ). Accordingly, the Company has entered into an Investment Management Agreement ( IMA ) with NPS Trust. The Pension Fund Regulatory and Development Authority (''PFRDA' / ''Authority'') guidelines require each PFM to manage subscribers funds. As per unbundled architecture of the NPS, the main responsibility of PFM is to manage funds in accordance with the laid down guidelines and declare NAV. As per the architecture, the NSDL e-governance Infrastructure Ltd., being the Central Recordkeeping Agency (CRA) provides consolidated data to PFM for allotment / redemption of units and Axis Bank, being the Trustee Bank, provides / receives funds on consolidated basis in respect of such allotment / redemption. Central Record Keeping Agency (CRA): National Securities Depository Limited (NSDL) and PFRDA have set up Central Recordkeeping Agency (CRA) for the NPS. Some of the key responsibilities of the CRA include the following: Record keeping, Administration and Customer service function for NPS subscriber, Providing Unique Permanent Retirement Account Number (PRAN) to each subscriber, Maintaining database of all PRANs issued and recording transactions relating to each subscribers PRAN, PRAN Transaction Statement, An operational interface between PFRDA and other NPS intermediaries such as Pension Funds, Annuity Service Providers, Trust Bank etc. CRA is responsible to resolve all queries pertaining to investors. CRA informs about the fund flow to Pension Fund Managers (PFM) and also instruct AXIS Bank to credit PFM's pool account maintained with them. NPS trust has designated Stock Holding Corporation of India Ltd. (SHCIL) as the custodian, who is responsible for safe custody of securities and settlements of trades. The fees payable to CRA, in terms of IMA, is charged to the investor by redeeming the equivalent number of units on receipt of intimation from CRA. As stated above, the amount of funds received from the subscribers is intimated by the Trustee Bank on consolidated basis on T+2 basis. PFM records the same on receipt basis. Accordingly, funds with Trustee Bank at the yearend do not get reflected in the financial statements.

7 1.2 Basis of preparation The financial statements have been prepared to comply with the Pension Fund Regulatory and Development Authority Act, 2013, PFRDA (Preparation of financial statements and Auditor s report of Schemes under National Pension System) Guidelines 2012, Accounting Standards notified under the Companies Act, 1956 to the extent made applicable by PFRDA (Preparation of financial statements and Auditor s report of Schemes under National Pension System) Guidelines 2012 and generally accepted accounting principles. These financial statements have been prepared on an accrual basis, except as otherwise stated. The financials have been prepared for SCHEME E TIER I being managed by the Company. The Company manages six separate schemes under the two tiered structure (Tier I and II) prescribed under the NPS. The schemes are classified as Scheme E, C and G based on the asset class prescribed under the NPS as follows: Scheme E - Equity market instruments Scheme C - Credit risk bearing fixed income instruments Scheme G - Government securities 1.3 Investments Transactions for purchase and sale of securities are accounted on trade date. The holding cost of investments is determined by the weighted average cost method and the cost does not include brokerage and other transaction charges. The cost of investments acquired or purchased includes applicable taxes and stamp charges but exclude brokerage and other transactional charges. Investments are reconciled with the custodian records on daily basis. Valuation of Investments The scheme marks all investments to market and carries investments in the Balance Sheet at the market value as on Balance Sheet date / date of determination / date of valuation. The change in unrealised appreciation/depreciation in the value of investments is determined separately for each assets category at the Balance Sheet date and is recognised in the Revenue Account. The change in net unrealised appreciation, if any, is transferred to /from Unrealised Appreciation Reserve" shown as part of Reserves and Surplus. As per directive received from NPS Trust, the valuation of investments is carried out by Stock Holding Corporation of India Limited (SHCIL) effective April 1, The Investment valuation methodology adopted by SHCIL is as follows: The following valuation norms are as prescribed by PFRDA (Preparation of Financial Statements and Auditor s Report of schemes under National Pension System) Guidelines

8 Securities traded at a stock exchange: The securities are valued at the daily close price on the stock exchange. Listed equity shares are valued at market value, being the last quoted closing price on the National stock exchange (NSE). If they are not quoted on NSE, then the last quoted closing price on the Bombay stock exchange (BSE) is taken. Non traded rights are valued at the difference of closing market price of the original equity share for the day and the offer price. Traded rights are valued at the closing market price of the rights renunciation till the time of application. In the event of application of rights, the rights entitlement would be valued at the closing market price of the original equity share till the date of allotment/listing. Mutual fund units are valued based on the net asset values of the preceding day of the valuation date. Securities not traded at a stock exchange: Non traded / thinly traded / privately placed equity securities including those not traded within thirty days are valued in-good faith on the basis of following valuation methods approved by the Authority/Trust: Equity instruments are generally valued on the basis of capitalization of earnings solely or in combination with the net asset value, using for the purposes of capitalization, the price or earning ratios of comparable traded securities and with an appropriate discount for lower liquidity. 1.4 Income Recognition Dividend Income is recognised on the "Ex-Dividend" date in case of listed equity shares. Bonus entitled shares are recognised only when the original shares on which the bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Rights entitlements are recognized only when the original shares on which the right entitlement accrues are traded on the stock exchange on an ex-rights basis. Profit or loss on sale of equity is the difference between the sale consideration net of expenses and the weighted average book cost as on the date of sale. Profit or loss on sale of mutual fund units is the difference between the sale consideration net of expenses and the weighted average book cost. Interest income on all interest bearing investment is recognised on daily accrual basis; when investments are purchased, interest paid for the period from the last interest due date upto the date of purchase is debited to Interest Recoverable Account and not included in cost of purchase. Similarly interest received at the time of sale for the period from the last interest due date upto the date of sale credited to Interest Recoverable Account and not included in sale value.

9 1.5 Units reconciliation The subscribers units as per Investment management system are reconciled with Central Recordkeeping Agency (CRA) records on daily basis. 1.6 Investment management fees Investment management fees are recognised on daily accrual basis on closing Asset Under Management (AUM) in accordance with IMA. The Investment management fee is inclusive of brokerage but excludes custodian charges and applicable taxes, if any. The Company has started charging investment management fee of 0.01% per annum (inclusive of brokerage but excluding custodian charges and applicable taxes), with effect from August 01, 2014, in terms of the Pension Fund Regulatory and Development Authority s circular no. PFRDA/6/PFM/9/2 dated July 31, The investment management fees charged until July 31, 2014 was 0.25% per annum (inclusive of brokerage but excluding custodian charges and applicable taxes), in terms of the Pension Fund Regulatory and Development Authority s circular no. PFRDA/CIR/1/PFM/ Other Expenses Custody charges are recognised on daily accrual basis in accordance with IMA. Trustee bank charges, if any, are recognised when they are debited by the trustee bank on a quarterly basis. 1.8 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the Unit Premium Reserve of the Scheme.

10 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I Notes to accounts (Un-audited) 2.1 Contingent liabilities Uncalled liability on partly paid shares NIL NIL Other commitments NIL NIL 2.2 Investments All investments are performing investments. All investments of the scheme are in the name of the NPS Trust. All investments are traded investments. 2.3 Details of transactions with sponsor and its related parties Nature of relationship Pension fund manager Sponsor company Associates and group companies Holding Company Mr. Amitabh Chaudhry Ms. Vibha Padalkar Mr. Sumit Shukla Mr. Fagun Pancholi Mr. Nagesh Pai Name of the related party HDFC Pension Management Company Limited HDFC Standard Life Insurance Company Limited HDFC Limited Key Management Personnel Key Management Personnel Key Management Personnel Key Management Personnel Key Management Personnel The following represents significant transactions between the Company and its related parties for the half year ended Nature of Transaction Investment management fees 16,573 32,358 Balances with HDFC Pension Management Company Limited are as follows: Nature of Transaction Investment management fees payable 10,910 29,178 Aggregate investments made in the Associates and group companies as at are as follows: Name of the Company Asset type Cost Market Value Cost Market Value HDFC Ltd Equity 24,677,630 25,048,139 3,923,140 4,468,984 Investment with other Group Companies Nature of relationship Associates of Holding Company Name of the related party HDFC Bank Limited Aggregate investments made in the other group companies as at are as follows: Name of the Company Asset type Cost Market Value Cost Market Value HDFC Bank Ltd Equity 25,090,259 27,453,197 3,907,785 4,488, Provision There are no provisions for doubtful deposits, debts and outstanding and accrued income. 2.5 Aggregate value of purchase and sale with percentage to average assets Aggregate value of purchase and sale with percentage to average assets as at is as follows : Particular Average Net Asset Value 291,806,169 47,384,436 Purchase of Investment 710,400, ,575,583 % to average Net Assets Value 243% 257% Sale of Investment 486,945,475 75,147,289 % to average Net Assets Value 167% 159%

11 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I Notes to accounts (Un-audited) Aggregate value of purchase and sale (excluding liquid mutual fund)* with percentage to average assets as at is as follows : Particular Average Net Asset Value 291,806,169 47,384,436 Purchase of Investment 258,540,733 48,292,883 % to average Net Assets Value 89% 102% Sale of Investment 25,077,143 1,827,320 % to average Net Assets Value 9% 4% *Liquid mutual fund investments are held for day to day cash management, hence excluded 2.6 Investments falling under each major industry group The total value of investments falling under each major industry group (which constitutes not less than 5% of the total investments in the major classification of the financials) are disclosed as under: Industry Classification Monetary intermediation of commercial / saving / postal banks Writing, modifying, testing of computer program Market value % of Industry Classification Market value % of Industry Classification 95,956, % 15,703, % 70,676, % 12,341, % Manufacture of allopathic pharmaceutical preparations 33,091, % 4,687, % Manufacture of cigarettes, cigarette tobacco 27,212, % 5,661, % Activities of specialized institutions granting credit for house purchases 25,048, % 4,468, % Manufacture of refined petroleum products 20,251, % 4,319, % Others (Industries constitute less than 5%) 132,504, % 27,015, % Mutual Funds 5,618, % 1,029, % Net Current Assets 40, % -720, % Net Asset Value 410,399, % 74,507, % Note : 1) Industry classification has been taken at sub class level of National Industrial Classification (NIC) ) Previous year's figures are regrouped basis the current year's industry exposure. 2.7 Age wise disclosure for Shares/debentures/ others application money pending allotment. Security Name Asset Type Ageing NIL NIL 2.8 Prior Year Comparatives : The Figures of the previous period have been regrouped / rearranged, wherever applicable, to confirm current year's presentation.

12 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I 2.9 Un-audited half-yearly Portfolio Statement for the period ended Name of the instrument Market value % of Portfolio Equity Instruments Shares 1.Infosys Ltd 33,460, % N.A. 2.HDFC Bank Ltd 27,453, % N.A. 3.ITC Ltd 27,212, % N.A. 4.Housing Devt Finance Corpn Ltd 25,048, % N.A. 5.ICICI Bank Ltd 22,580, % N.A. 6.Reliance Industries Ltd 20,251, % N.A. 7.Tata Consultancy Services Ltd 19,084, % N.A. 8.Larsen & Toubro Ltd 17,430, % N.A. 9.Sun Pharmaceuticals Industries Ltd 13,621, % N.A. 10.Axis Bank Ltd 11,982, % N.A. 11.State Bank of India 10,377, % N.A. 12.Kotak Mahindra Bank Ltd 9,605, % N.A. 13.Maruti Suzuki India Ltd 8,846, % N.A. 14.Hindustan Unilever Ltd 8,540, % N.A. 15.Tata Motors Ltd 8,441, % N.A. 16.Mahindra & Mahindra Ltd 8,358, % N.A. 17.HCL Technologies Ltd 7,810, % N.A. 18.Dr Reddys Laboratories Ltd 7,704, % N.A. 19.Lupin Ltd 6,978, % N.A. 20.BHARATI AIRTEL LTD 6,836, % N.A. 21.IndusInd Bank Ltd 6,636, % N.A. 22.Coal India Ltd 6,077, % N.A. 23.Oil & Natural Gas Corporation Ltd 5,885, % N.A. 24.Wipro Ltd 5,516, % N.A. 25.Asian Paints (India) Ltd 5,451, % N.A. 26.Tech Mahindra Ltd 4,804, % N.A. 27.Cipla Ltd 4,786, % N.A. 28.Bajaj Auto Ltd 4,635, % N.A. 29.Hero Motocorp Ltd 4,209, % N.A. 30.Power Grid Corporation of India Ltd 4,169, % N.A. 31.UltraTech Cement Ltd 3,924, % N.A. 32.Adani Ports And Special Economic Zone Ltd. 3,857, % N.A. 33.National Thermal Power Corporation Ltd 3,702, % N.A. 34.Yes Bank Ltd 3,407, % N.A. 35.Grasim Industries Ltd 3,211, % N.A. 36.Bharat Petroleum Corporation Ltd 3,154, % N.A. 37.Zee Entertainment Enterprises Ltd 3,055, % N.A. 38.Bharat Heavy Electricals Ltd 2,715, % N.A. 39.Bosch Ltd 2,520, % N.A. 40.Bank of Baroda 2,483, % N.A. 41.Idea Cellular Ltd 2,445, % N.A. 42.Ambuja Cements Ltd 2,322, % N.A. 43.Tata Steel Ltd 2,101, % N.A. 44.Gas Authority of India Ltd. 2,073, % N.A. 45.Associated Cement Co Ltd 1,822, % N.A. 46.Tata Power Co. Ltd 1,683, % N.A. 47.Punjab National Bank 1,429, % N.A. 48.Vedanta Ltd 1,361, % N.A. 49.Hindalco Industries Ltd 1,320, % N.A. 50.Cairn India Ltd 1,289, % N.A. 51.National Mineral Development Corporation Ltd 1,061, % N.A. Equity Instruments Total 404,740, % Rating (if any) Debt Instruments PSU/PFI Bonds Debt Instruments Total % Money Market Instruments Liquid Mututal Funds 1.ICICI Prudential Liquid - Direct Plan - Growth 5,618, % AAA Money Market Instruments Total 5,618, % Cash/Cash Equivalent & Net Current Assets 40, % Grand Total 410,399, %

13 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I 2.9 Un-audited half-yearly Portfolio Statement for the period ended Name of the instrument Market value % of Portfolio Rating (if any) Average Maturity of Portfolio (in yrs) Modified Duration (in yrs) Yield to Maturity (%) (annualised) (at market price) N.A. N.A. N.A. Credit Rating Exposure Central Government Securities - - State Development Loans - - AAA / equivalent - - A1+ / equivalent (Certificate of Deposits / Commercial Papers) - - AA+ / equivalent - - AA / equivalent - - AA- / equivalent - - A+ / equivalent - - A / equivalent - - A- / equivalent - - BBB+ / equivalent - - BBB / equivalent - - BBB- / equivalent - - Lower (Below Investment Grade) - - (out of above Net NPA) - - TOTAL - - Bank FD - - Equity 404,740, % Equity Mutual Funds - - Gilt / Money Market Mutual Funds 5,618, % Cash / cash equivalent net current assets 40, % Application Pending Allotment - NCDs - - Others - - Grand Total 410,399, % Units Outstanding 28,109,604 NAV Notes: a. Total NPAs provided for and its percentage to NAV b. Total value and percentage of illiquid equity shares c. NAV at March 31,2015 d. NAV at September 30,2015 e. Total outstanding exposure in derivative instruments at f. Total 'Infrastructure investments'

14 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER I 3. KEY STATISTICS FOR THE HALF YEAR ENDED SEPTEMBER 30, 2015 (UN - AUDITED) Sr No HPMC-E-T-I 1 NAV per unit (`) I Open High Low End Closing Assets Under Management (` in Lakhs) End 4, Average daily net assets (AAuM) II 2, Gross income as % of AAuM III 1.34% 15.30% 4 Expense ratio a Total expense as % of AAuM (scheme wise) IV 0.01% 0.07% b Management fee as % of AAuM (scheme wise) V 0.01% 0.14% 5 Net income as % of AAuM VI -6.13% 15.13% 6 Portfolio turnover ratio VII Total dividend per unit distributed during the period N.A. N.A. 8 Returns: (%) a Last one year 1.24% 40.67% Benchmark 0.87% 40.51% b Since inception 46.00% 44.21% Benchmark 42.19% 40.96% c Compound annualised yield (%) VIII Last 1 year 1.24% 40.67% Last 3 years N.A. N.A. Last 5 years N.A. N.A. Since launch of the scheme 19.11% 36.95% Launch Date August 01, 2013 I NAV = (Market value of investment held by scheme + value of current assets - value of current liability and provisions, if any) / (no. of units at the valuation date (before creation/ redemption of units) II AAuM = Average daily net assets III Gross income = Income includes Interest, Dividend, Realised/Unrealised Gain IV Total expenses = Expenses include management fees, custody fees, trustee bank charges but excludes Unrealised /Realised loss V Management fee as % of AAuM is annualised VI Net income = Total income less Total expenses and losses VII Portfolio turnover = Lower of sales or purchase divided by the average AUM for the period. Investments in liquid mutual fund is excluded from the turnover as the same is primarily for liquidity management VIII Compounded annualised yield is to be calculated based on following formula: = (1+ cumulative return)^n -1 (where n=365/no. of days)

15 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II Un-audited Financial Statements for the half year ended Contents Balance Sheet Revenue Account Accounting Policies and Notes to Accounts

16 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II UN-AUDITED BALANCE SHEET AS AT SEPTEMBER 30, 2015 Schedule Sources of funds Unitholders Funds Unit Capital 1 11,478,104 1,492,332 Reserves & Surplus 2 2,934, ,665 Current Liabilities and Provisions ,514 Borrowings Total 14,413,599 1,848,511 Application of funds Investments (Long term and short term) 4 14,410,682 1,847,261 Deposits Other Current Assets 6 2,917 1,250 Total 14,413,599 1,848,511 (a) Net asset as per Balance Sheet (Schedule ) 14,412,765 1,846,997 (b) Number of units outstanding 1,147, ,233 (c) NAV per unit (a)/(b) (`) Significant accounting policies and notes to accounts 7 The notes referred to above form an integral part of the financial statements. For and on behalf of Board of Directors of HDFC Pension Management Company Limited Amitabh Chaudhry (Director) Vibha Padalkar (Director) Sumit Shukla Fagun Pancholi Nagesh Pai (Chief Executive Officer) (Chief Financial Officer) (Company Secretary) Place : Mumbai Date : October 14, 2015

17 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II UN-AUDITED REVENUE ACCOUNT FOR THE HALF YEAR ENDED SEPTEMBER 30, 2015 Income & Gain Interest income 24 - Dividend income 100,994 9,270 Profit on sale/redemption of investments (other than inter-scheme transfer/sale) 25,198 10,631 Unrealised gain on appreciation in investments ,684 Total Income & Gain (A) 126, ,584 Expenses & Losses Schedule Unrealised losses in value of investments 709,290 - Loss on sale/redemption of investments(other than inter-scheme transfer/sale) 1, Management fees Custodian fees CRA fees 4,734 1,028 Less : recovered on sale of units on account of CRA Charges (4,734) (1,028) Total Expenses & Losses (B) 711,839 1,771 Net income/(expenditure) for the period (A-B = C) (585,307) 137,813 Balance at the beginning of the period 48,868 7,023 Net Unrealised appreciation in value of Investment transferred from/ (to) Unrealised Appreciation Reserve 217,532 (119,684) Balance at the end of the period carried to Balance Sheet (318,907) 25,153 Total income (including net unrealised gain/loss) expressed as a percentage of average net assets,calculated on a daily basis. Total expenditure expressed as a percentage of average net assets, calculated on a daily basis. Significant accounting policies and notes to accounts % 11.90% 0.01% 0.07% The notes referred to above form an integral part of the financial statements. For and on behalf of Board of Directors of HDFC Pension Management Company Limited Amitabh Chaudhry (Director) Vibha Padalkar (Director) Sumit Shukla Fagun Pancholi Nagesh Pai (Chief Executive Officer) (Chief Financial Officer) (Company Secretary) Place : Mumbai Date : October 14, 2015

18 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II Schedules forming part of the un-audited half yearly financial statements Schedule 1: Unit capital Initial capital Units Units Unit capital Opening balance 406,891 4,068,912 45, ,258 Additions during the period 769,298 7,692, ,946 1,109,461 Deduction during the period (28,379) (283,792) (7,239) (72,387) Closing balance 1,147,810 11,478, ,233 1,492,332 Schedule 2: Reserves and surplus Unit premium reserve Opening balance 1,055,959 21,155 Additions during the period 2,286, ,432 Deduction during the period (88,791) (13,235) Closing balance 3,253, ,352 Unrealised Appreciation Reserve Opening balance 217,848 8,477 Change in net unrealised appreciation in value of investments (217,532) 119,684 Closing balance ,161 Surplus/(deficit) in Revenue account Opening balance 48,868 7,023 Additions during the period - 18,130 Deduction during the period (367,775) - Closing balance (318,907) 25,153 General reserve* - - Appropriation account* - - Total 2,934, ,665 * The balances have been nil throughout the period Schedule 3: Current liabilities and provisions Current liabilities Sundry creditors Contracts for purchase of investments - - Unit redemption payable Provisions - - Total 834 1,514

19 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II Schedules forming part of the un-audited half yearly financial statements Schedule 4: Investments Equity shares 13,726,566 1,607,841 Debentures and bonds - - Others - Mutual funds 684, ,420 Total 14,410,682 1,847,261 Schedule 5: Deposits Deposits with scheduled banks - - Others - - Total - - Schedule 6: Other current assets Balances with banks in current / saving account Sundry debtors - - Contracts for sale of investments - - Others - Dividend receivable 2, Total 2,917 1,250

20 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II Schedule 7 Significant accounting policies & notes to accounts for the half year ended 1.1 Background HDFC Pension Management Company Limited ( the Company ) has been appointed as a Pension Fund Manager ( PFM ) by the Pension Fund Regulatory and Development Authority ("PFRDA") for the management of Pension Schemes under the National Pension System ( NPS ). Accordingly, the Company has entered into an Investment Management Agreement ( IMA ) with NPS Trust. The Pension Fund Regulatory and Development Authority (''PFRDA' / ''Authority'') guidelines require each PFM to manage subscribers funds. As per unbundled architecture of the NPS, the main responsibility of PFM is to manage funds in accordance with the laid down guidelines and declare NAV. As per the architecture, the NSDL e-governance Infrastructure Ltd., being the Central Recordkeeping Agency (CRA) provides consolidated data to PFM for allotment / redemption of units and Axis Bank, being the Trustee Bank, provides / receives funds on consolidated basis in respect of such allotment / redemption. Central Record Keeping Agency (CRA): National Securities Depository Limited (NSDL) and PFRDA have set up Central Recordkeeping Agency (CRA) for the NPS. Some of the key responsibilities of the CRA include the following: Recording keeping, Administration and Customer service function for NPS subscriber, Providing Unique Permanent Retirement Account Number (PRAN) to each subscriber, Maintaining database of all PRANs issued and recording transactions relating to each subscribers PRAN, PRAN Transaction Statement, An operational interface between PFRDA and other NPS intermediaries such as Pension Funds, Annuity Service Providers, Trust Bank etc. CRA is responsible to resolve all queries pertaining to investors. CRA informs about the fund flow to Pension Fund Managers (PFM) and also instruct AXIS Bank to credit PFM's pool account maintained with them. NPS trust has designated Stock Holding Corporation of India Ltd. (SHCIL) as the custodian, who is responsible for safe custody of securities and settlements of trades. The fees payable to CRA, in terms of IMA, is charged to the investor by redeeming the equivalent number of units on receipt of intimation from CRA. As stated above, the amount of funds received from the subscribers is intimated by the Trustee Bank on consolidated basis on T+2 basis. PFM records the same on receipt basis. Accordingly, funds with Trustee Bank at the yearend do not get reflected in the financial statements.

21 1.2 Basis of preparation The financial statements have been prepared to comply with the Pension Fund Regulatory and Development Authority Act, 2013, PFRDA (Preparation of financial statements and Auditor s report of Schemes under National Pension System) Guidelines 2012, Accounting Standards notified under the Companies Act, 1956 to the extent made applicable by PFRDA (Preparation of financial statements and Auditor s report of Schemes under National Pension System) Guidelines 2012 and generally accepted accounting principles. These financial statements have been prepared on an accrual basis, except as otherwise stated. The financials have been prepared for SCHEME E TIER II being managed by the Company. The Company manages six separate schemes under the two tiered structure (Tier I and II) prescribed under the NPS. The schemes are classified as Scheme E, C and G based on the asset class prescribed under the NPS as follows: Scheme E - Equity market instruments Scheme C - Credit risk bearing fixed income instruments Scheme G - Government securities 1.3 Investments Transactions for purchase and sale of securities are accounted on trade date. The holding cost of investments is determined by the weighted average cost method and the cost does not include brokerage and other transaction charges. The cost of investments acquired or purchased includes applicable taxes and stamp charges but exclude brokerage and other transactional charges. Investments are reconciled with the custodian records on daily basis. Valuation of Investments The scheme marks all investments to market and carries investments in the Balance Sheet at the market value as on Balance Sheet date / date of determination / date of valuation. The change in unrealised appreciation/depreciation in the value of investments is determined separately for each assets category at the year-end and is recognised in the Revenue Account. The change in net unrealised appreciation, if any, is transferred to /from Unrealised Appreciation Reserve" shown as part of Reserves and Surplus. As per directive received from NPS Trust, the valuation of investments is carried out by Stock Holding Corporation of India Limited (SHCIL) effective April 1, The Investment valuation methodology adopted by SHCIL is as follows: The following valuation norms are as prescribed by PFRDA (Preparation of Financial Statements and Auditor s Report of schemes under National Pension System) Guidelines

22 Securities traded at a stock exchange: The securities are valued at the daily close price on the stock exchange. Listed equity shares are valued at market value, being the last quoted closing price on the National stock exchange (NSE). If they are not quoted on NSE, then the last quoted closing price on the Bombay stock exchange (BSE) is taken. Non traded rights are valued at the difference of closing market price of the original equity share for the day and the offer price. Traded rights are valued at the closing market price of the rights renunciation till the time of application. In the event of application of rights, the rights entitlement would be valued at the closing market price of the original equity share till the date of allotment/listing. Mutual fund units are valued based on the net asset values of the preceding day of the valuation date. Securities not traded at a stock exchange: Non traded / thinly traded / privately placed equity securities including those not traded within thirty days are valued in-good faith on the basis of following valuation methods approved by the Authority/Trust: Equity instruments are generally valued on the basis of capitalization of earnings solely or in combination with the net asset value, using for the purposes of capitalization, the price or earning ratios of comparable traded securities and with an appropriate discount for lower liquidity. 1.4 Income Recognition Dividend Income is recognised on the "Ex-Dividend" date in case of listed equity shares. Bonus entitled shares are recognised only when the original shares on which the bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Rights entitlements are recognized only when the original shares on which the right entitlement accrues are traded on the stock exchange on an ex-rights basis. Profit or loss on sale of equity is the difference between the sale consideration net of expenses and the weighted average book cost as on the date of sale. Profit or loss on sale of mutual fund units is the difference between the sale consideration net of expenses and the weighted average book cost. Interest income on all interest bearing investment is recognised on daily accrual basis; when investments are purchased, interest paid for the period from the last interest due date upto the date of purchase is debited to Interest Recoverable Account and not included in cost of purchase. Similarly interest received at the time of sale for the period from the last interest due date upto the date of sale credited to Interest Recoverable Account and not included in sale value.

23 1.5 Units reconciliation The subscribers units as per Investment management system are reconciled with Central Recordkeeping Agency (CRA) records on daily basis. 1.6 Investment management fees Investment management fees are recognised on daily accrual basis on closing Asset Under Management (AUM) in accordance with IMA. The Investment management fee is inclusive of brokerage but excludes custodian charges and applicable taxes, if any. The Company has charged investment management fee of 0.01% per annum (inclusive of brokerage but excluding custodian charges and applicable taxes), with effect from August 01, 2014, in terms of the Pension Fund Regulatory and Development Authority s circular no. PFRDA/6/PFM/9/2 dated July 31, The investment management fees charged until July 31, 2014 was 0.25% per annum (inclusive of brokerage but excluding custodian charges and applicable taxes), in terms of the Pension Fund Regulatory and Development Authority s circular no. PFRDA/CIR/1/PFM/ Other Expenses Custody charges are recognised on daily accrual basis in accordance with IMA. Trustee bank charges, if any, are recognised when they are debited by the trustee bank on a quarterly basis. 1.8 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the Unit Premium Reserve of the Scheme.

24 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II Notes to accounts (Un-audited) 2.1 Contingent liabilities Uncalled liability on partly paid shares NIL NIL Other commitments NIL NIL 2.2 Investments All investments are performing investments. All investments of the scheme are in the name of the NPS Trust. All investments are traded investments. 2.3 Details of transactions with sponsor and its related parties Nature of relationship Pension fund manager Sponsor company Associates and group companies Holding Company Mr. Amitabh Chaudhry Ms. Vibha Padalkar Mr. Sumit Shukla Mr. Fagun Pancholi Mr. Nagesh Pai Name of the related party HDFC Pension Management Company Limited HDFC Standard Life Insurance Company Limited HDFC Limited Key Management Personnel Key Management Personnel Key Management Personnel Key Management Personnel Key Management Personnel The following represents significant transactions between the Company and its related parties for the half year ended Nature of Transaction Investment management fees Balances with HDFC Pension Management Company Limited are as follows: Nature of Transaction Investment management fees payable Aggregate investments made in the Associates and group companies as at are as follows: Name of the Company Asset type Cost Market Value Cost Market Value HDFC Ltd Equity 858, ,053 88,372 98,138 Investment with other Group Companies Nature of relationship Associates of Holding Company Name of the related party HDFC Bank Limited Aggregate investments made in the other group companies as at are as follows: Name of the Company Asset type Cost Market Value Cost Market Value HDFC Bank Ltd Equity 877, ,062 89,630 96, Provision There are no provisions for doubtful deposits, debts and outstanding and accrued income. 2.5 Aggregate value of purchase and sale with percentage to average assets Aggregate value of purchase and sale with percentage to average assets as at is as follows : Particular Average Net Asset Value 10,352,477 1,164,656 Purchase of Investment 23,855,834 4,348,812 % to average Net Assets Value 230% 373% Sale of Investment 14,124,804 3,131,215 % to average Net Assets Value 136% 269%

25 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II Notes to accounts (Un-audited) Aggregate value of purchase and sale (excluding liquid mutual fund)* with percentage to average assets as at is as follows : Particular Average Net Asset Value 10,352,477 1,164,656 Purchase of Investment 9,380,735 1,040,812 % to average Net Assets Value 91% 89% Sale of Investment 98,582 7,079 % to average Net Assets Value 1% 1% *Liquid mutual fund investments are held for day to day cash management, hence excluded 2.6 Investments falling under each major industry group The total value of investments falling under each major industry group (which constitutes not less than 5% of the total investments in the major classification of the financials) are disclosed as under: Industry Classification Market value % of Industry Classification Market value % of Industry Classification Monetary intermediation of commercial / saving / postal banks 3,247, % 339, % Writing, modifying, testing of computer program 2,414, % 263, % Manufacture of allopathic pharmaceutical preparations 1,121, % 101, % Manufacture of cigarettes, cigarette tobacco 909, % 121, % Activities of specialized institutions granting credit for house purchases 861, % 98, % Manufacture of refined petroleum products 703, % 93, % Others (Industries constitute less than 5%) 4,468, % 589, % Mutual Funds 684, % 239, % Net Current Assets 2, % (264) -0.01% Net Asset Value 14,412, % 1,846, % Note : 1) Industry classification has been taken at sub class level of National Industrial Classification (NIC) ) Previous year's figures are regrouped basis the current year's industry exposure. 2.7 Age wise disclosure for Shares/debentures/ others application money pending allotment. Security Name Asset Type Ageing NIL NIL 2.8 Prior Year Comparatives : The Figures of the previous period have been regrouped / rearranged, wherever applicable, to confirm current year's presentation.

26 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II 2.9 Un-audited half-yearly Portfolio Statement for the period ended Name of the instrument Market value % of Portfolio Equity Instruments Rating (if any) Shares 1.Infosys Ltd 1,139, % N.A. 2.HDFC Bank Ltd 933, % N.A. 3.ITC Ltd 909, % N.A. 4.Housing Devt Finance Corpn Ltd 861, % N.A. 5.ICICI Bank Ltd 762, % N.A. 6.Reliance Industries Ltd 703, % N.A. 7.Tata Consultancy Services Ltd 654, % N.A. 8.Larsen & Toubro Ltd 592, % N.A. 9.Sun Pharmaceuticals Industries Ltd 461, % N.A. 10.Axis Bank Ltd 400, % N.A. 11.State Bank of India 356, % N.A. 12.Kotak Mahindra Bank Ltd 321, % N.A. 13.Maruti Suzuki India Ltd 304, % N.A. 14.Mahindra & Mahindra Ltd 285, % N.A. 15.Hindustan Unilever Ltd 285, % N.A. 16.Tata Motors Ltd 275, % N.A. 17.HCL Technologies Ltd 267, % N.A. 18.Dr Reddys Laboratories Ltd 262, % N.A. 19.Lupin Ltd 240, % N.A. 20.IndusInd Bank Ltd 227, % N.A. 21.BHARATI AIRTEL LTD 227, % N.A. 22.Coal India Ltd 206, % N.A. 23.Oil & Natural Gas Corporation Ltd 203, % N.A. 24.Wipro Ltd 185, % N.A. 25.Asian Paints (India) Ltd 183, % N.A. 26.Tech Mahindra Ltd 167, % N.A. 27.Cipla Ltd 157, % N.A. 28.Bajaj Auto Ltd 157, % N.A. 29.Hero Motocorp Ltd 143, % N.A. 30.Power Grid Corporation of India Ltd 142, % N.A. 31.UltraTech Cement Ltd 136, % N.A. 32.Adani Ports And Special Economic Zone Ltd. 134, % N.A. 33.National Thermal Power Corporation Ltd 120, % N.A. 34.Yes Bank Ltd 114, % N.A. 35.Grasim Industries Ltd 109, % N.A. 36.Bharat Petroleum Corporation Ltd 105, % N.A. 37.Zee Entertainment Enterprises Ltd 104, % N.A. 38.Bharat Heavy Electricals Ltd 90, % N.A. 39.Idea Cellular Ltd 83, % N.A. 40.Bank of Baroda 83, % N.A. 41.Bosch Ltd 77, % N.A. 42.Ambuja Cements Ltd 77, % N.A. 43.Gas Authority of India Ltd. 68, % N.A. 44.Tata Steel Ltd 67, % N.A. 45.Associated Cement Co Ltd 60, % N.A. 46.Tata Power Co. Ltd 56, % N.A. 47.Punjab National Bank 48, % N.A. 48.Vedanta Ltd 45, % N.A. 49.Cairn India Ltd 44, % N.A. 50.Hindalco Industries Ltd 43, % N.A. 51.National Mineral Development Corporation Ltd 35, % N.A. Equity Instruments Total 13,726, % Debt Instruments PSU/PFI Bonds Debt Instruments Total % Money Market Instruments Liquid Mutual Funds 1.ICICI Prudential Liquid - Direct Plan - Growth 684, % AAA Money Market Instruments Total 684, % Cash/Cash Equivalent & Net Current Assets 2, % Grand Total 14,412, %

27 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II 2.9 Un-audited half-yearly Portfolio Statement for the period ended Name of the instrument Market value % of Portfolio Rating (if any) Average Maturity of Portfolio (in yrs) Modified Duration (in yrs) Yield to Maturity (%) (annualised) (at market price) N.A. N.A. N.A. Credit Rating Exposure Central Government Securities - - State Development Loans - - AAA / equivalent - - A1+ / equivalent (Certificate of Deposits / Commercial Papers) - - AA+ / equivalent - - AA / equivalent - - AA- / equivalent - - A+ / equivalent - - A / equivalent - - A- / equivalent - - BBB+ / equivalent - - BBB / equivalent - - BBB- / equivalent - - Lower (Below Investment Grade) - - (out of above Net NPA) - - TOTAL % Bank FD - - Equity 13,726, % Equity Mutual Funds - - Gilt / Money Market Mutual Funds 684, % Cash / cash equivalent net current assets 2, % Application Pending Allotment - NCDs - - Others - - Grand Total 14,412, % Units Outstanding 1,147,810 NAV Notes: a. Total NPAs provided for and its percentage to NAV b. Total value and percentage of illiquid equity shares c. NAV at March 31,2015 d. NAV at September 30,2015 e. Total outstanding exposure in derivative instruments at f. Total 'Infrastructure investments'

28 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME E TIER II HPMC-E-T-I 3. KEY STATISTICS FOR THE HALF YEAR ENDED SEPTEMBER 30, 2015 (UN - AUDITED) Sr No HPMC-E-T-I 1 NAV per unit (`) I Open High Low End Closing Assets Under Management (` in Lakhs) End Average daily net assets (AAuM) II Gross income as % of AAuM III 1.22% 11.99% 4 Expense ratio a Total expense as % of AAuM (scheme wise) IV 0.01% 0.07% b Management fee as % of AAuM (scheme wise) V 0.01% 0.14% 5 Net income as % of AAuM VI -5.65% 11.83% 6 Portfolio turnover ratio VII Total dividend per unit distributed during the period N.A. N.A. 8 Returns: (%) a Last one year VIII 1.46% 21.75% Benchmark VIII 0.87% 40.51% b Since inception VIII 25.57% 23.77% Benchmark VIII 42.19% 40.96% c Compound annualised yield (%) IX Last 1 year 1.46% 21.75% Last 3 years N.A. N.A. Last 5 years N.A. N.A. Since launch of the scheme 11.09% 20.10% Launch Date August 01, 2013 I NAV = (Market value of investment held by scheme + value of current assets - value of current liability and provisions, if any) / (no. of units at the valuation date (before creation/ redemption of units) II AAuM = Average daily net assets III Gross income = Income includes Interest, Dividend, Realised/Unrealised Gain IV Total expenses = Expenses include management fees, custody fees, trustee bank charges but excludes Unrealised /Realised loss V Management fee as % of AAuM is annualised VI Net income = Total income less Total expenses and losses VII Portfolio turnover = Lower of sales or purchase divided by the average AUM for the period. Investments in liquid mutual fund is excluded from the turnover as the same is primarily for liquidity management VIII The investments into the mandated assets of the fund started in March From the date of inception of the fund till March 2014 the inflows were invested in liquid schemes of mutual funds. As per fund objective of Tier II Scheme E, the fund only invests in equity securities through Nifty 50 Index basket. There is a minimum threshold amount for investment in Nifty 50 basket and till the time investable amount reaches this threshold, it is invested temporarily in liquid and money market schemes of mutual funds. Due to small size of the fund this has affected the fund performance. Hence, Fund performance since inception of the scheme is not comparable with the benchmark. IX Compounded annualised yield is to be calculated based on following formula: = (1+ cumulative return)^n -1 (where n=365/no. of days)

29 NPS TRUST A/C HDFC PENSION MANAGEMENT COMPANY LIMITED - SCHEME C TIER I Un-audited Financial Statements for the half year ended Contents Balance Sheet Revenue Account Accounting Policies and Notes to Accounts