JM FINANCIAL MUTUAL FUND

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1 Abridged ANNUAL REPORT Fund JM Floater Fund - Long Term JM Floater Fund - Short Term JM MIP Fund JM Interval Fund JM Income Fund JM Short Term Fund JM G-sec Fund JM Fixed Maturity Fund JM Financial Trustee Company Private Limited (as on 31st March 2012) Mr. Nimesh N. Kampani, Chairman Mr. Anant V. Setalvad Mr. Darius E. Udwadia Mr. Jalaj A. Dani Mr. Sharad M. Kulkarni Board of Directors JM Financial Asset Management Private Limited (as on 31st March 2012) Mr. V. P. Shetty, Chairman Mr. Darius Pandole Mr. G. M. Ramamurthy Mr. J. K. Modi Mr. Rajendra P. Chitale Mr. V. P. Singh SPONSOR TRUSTEE INVESTMENT MANAGER JM Financial Limited 141, Maker Chambers III, Nariman Point, Mumbai JM Financial Trustee Company Private Limited 141, Maker Chambers III, Nariman Point, Mumbai JM Financial Asset Management Private Limited 502, 5th Floor, A Wing, Laxmi Towers, Bandra Kurla Complex, Mumbai Tel. No.: Fax No.: AUDITORS LEGAL ADVISOR REGISTRAR & TRANSFER AGENT N. M. Raiji & Co., Chartered Accountants Universal Assurance Building, 6th Floor, P.M. Road, Fort, Mumbai Udwadia & Udeshi (Regd.) 1st Floor, Elphinstone House 17 Marzban road, Mumbai Karvy Computershare Private Limited Karvy Plaza, H. No , Avenue 4, Street No. 1, Banjara Hills, Hyderabad CUSTODIAN HDFC Bank Limited Lodha I Think Techno Campus, Buliding Alpha, Custody Department, 8th Floor, Opp Crompton Greaves, Kanjurmarg (E), Mumbai BANKERS HDFC Bank Limited CORPORATE OFFICE JM Financial Asset Management Private Limited 502, 5th Floor, A Wing, Laxmi Towers, Bandra Kurla Complex, Mumbai Tel. No.: Fax No.: investor@jmfl.com Website: JM FINANCIAL MUTUAL FUND

2 REPORT OF THE BOARD OF TRUSTEES Dear Investor, The Board of Trustees of JM Financial Mutual Fund is pleased to present the Annual Report of JM Financial Mutual Fund for the March 31, ECONOMIC OUTLOOK While the long term India growth story is intact, global recovery appeared shaky with new financial stress emerging from the euro region. Indian economy is estimated to have grown at 6.9% (as per the estimates of Central Statistics Office) versus the higher earlier estimates of 7.5% by the markets, in general. The major worries for Indian economy continued to be the higher fiscal deficit driven by higher crude oil prices and depreciating Rupee. Industrial growth, measured in terms of Index of Industrial Production (IIP), witnessed fluctuating trends. Corporate earnings have also been downgraded and Sensex is expected to clock EPS of 1250 in FY13, which discounts the market at 13.2x. Headline Wholesale Price Index (WPI) inflation remained persistently high and relatively sticky at around 9% during Though inflation remained high throughout the, it has shown signs of moderation lately. Liquidity conditions for a large part of FY remained tight with the liquidity deficit at more than 1% of Net Demand and Time Liabilities (NDTL) of the banking system. There was a rapid tightening of liquidity since November This was on account of pressure created by foreign exchange outflows and quarterly advance tax collections in December. The RBI responded with a number of measures aimed at addressing the tightness in the foreign exchange market, including the conduct of Open Market Operations (OMOs) to address rupee liquidity concerns. During the FY , the growth rates of reserve money (M0) and narrow money (M1) have been lower than in the preceding while broad money (M3) growth has been higher. Both the Sensex and Nifty exhibited bearish sentiment and declined 10.50% and 9.23% respectively financial March 31, Broader indices like BSE100 and BSE500 did marginally better than the Sensex & Nifty. Comparison of indices as on March 31, 2011 and March 30, 2012 is as follows: Index Name From date (March 31, 2011) To date (March 30, 2012) Comp. Annualized (%) BSE Sensex 19, , (10.50%) S&P Nifty 5, , (9.23%) BSE (9.23%) BSE500 7, , (9.11%) BSE (9.28%) CNX Midcap 8, , (4.09%) Source : Bloomberg Markets are expected to be volatile in the near future. This volatility will help to churn the arbitrage portfolio as few stock futures tend to trade at a discount to their cash market prices. The same can be deployed into fresh arbitrage in other stocks, which would help in enhancing the returns of Arbitrage schemes. SCHEME DETAILS & PERFORMANCE Performance of the Schemes as on March 31, 2012 $ Name of Scheme NAV March 31, 2012 Benchmark Index Scheme Returns since inception (%) Benchmark Returns since inception (%) Scheme Returns since last 1 (%) Benchmark Returns since last 1 (%) JM Income Fund - Bonus Option Crisil Composite Bond Fund Index 3.98 N A JM Income Fund Crisil Composite Bond Fund Index 8.27 N A JM Income Fund Crisil Composite Bond Fund Index 7.06 N A JM Short Term Fund - Institutional Crisil Liquid Fund Index JM Short Term Fund - Institutional - Daily * Crisil Liquid Fund Index N A N A JM Short Term Fund - Institutional Crisil Liquid Fund Index JM Short Term Fund - Regular Crisil Liquid Fund Index JM Short Term Fund - Regular - Daily Crisil Liquid Fund Index JM Short Term Fund - Regular Crisil Liquid Fund Index Fund - Regular - option Crisil Liquid Fund Index 7.82 N A Fund - Regular - Bonus option Crisil Liquid Fund Index 6.40 N A Fund - Institutional Crisil Liquid Fund Index Fund - Institutional Crisil Liquid Fund Index Super Institutional Daily Crisil Liquid Fund Index Fund - Regular - Weekly Crisil Liquid Fund Index 7.13 N A Fund - Regular - Daily Crisil Liquid Fund Index 6.33 N A Super Institutional Crisil Liquid Fund Index Institutional Daily Crisil Liquid Fund Index Fund - Regular - Quarterly Crisil Liquid Fund Index 6.45 N A Super Institutional Weekly Crisil Liquid Fund Index N A N A JM Floater Fund-Long Term - Premium Crisil Liquid Fund Index JM Floater Fund-Long Term - Premium Crisil Liquid Fund Index JM Floater Fund-Long Term - Regular Crisil Liquid Fund Index $ The performance is based on NAV, as on last Business Day of March

3 Name of Scheme NAV March 31, 2012 Benchmark Index Scheme Returns since inception (%) Benchmark Returns since inception (%) Scheme Returns since last 1 (%) Benchmark Returns since last 1 (%) JM Floater Fund-Long Term - Regular Crisil Liquid Fund Index JM Floater Fund-Long Term - Premium - Daily Crisil Liquid Fund Index JM Floater Fund-Long Term - Premium - Weekly Crisil Liquid Fund Index JM Floater Fund-Long Term - Regular -Daily Crisil Liquid Fund Index JM Floater Fund-Long Term - Regular -Weekly Option Crisil Liquid Fund Index JM Floater Fund - Short Term Daily Crisil Liquid Fund Index JM Floater Fund - Short Term Crisil Liquid Fund Index Super Plus -Daily Crisil Liquid Fund Index Super Plus -Fortnightly Crisil Liquid Fund Index Super Plus Crisil Liquid Fund Index Super Plus - Weekly Crisil Liquid Fund Index Super -Daily Crisil Liquid Fund Index Super -Fortnightly Crisil Liquid Fund Index Super Crisil Liquid Fund Index Super -Weekly Crisil Liquid Fund Index Regular -Daily Crisil Liquid Fund Index Regular -Fortnightly Crisil Liquid Fund Index Regular Crisil Liquid Fund Index Regular -Weekly Crisil Liquid Fund Index JM MIP Fund - Annual Crisil MIP Bl Index JM MIP Fund Crisil MIP Bl Index JM MIP Fund - Monthly Crisil MIP Bl Index JM MIP Fund - Quarterly Crisil MIP Bl Index JM FMF - Series XIX - D Crisil Short Term Bond Index JM FMF - Series XIX D Crisil Short Term Bond Index JM FMF - Series XX A Crisil Short Term Bond Index N A N A JM FMF - Series XX A Crisil Short Term Bond Index N A N A JM FMF - Series XX B Crisil Short Term Bond Index N A N A JM FMF - Series XX B Crisil Short Term Bond Index N A N A JM FMF - Series XXII A Crisil Short Term Bond Index N A N A JM FMF - Series XXII A Crisil Short Term Bond Index N A N A JM Interval Fund -Quarterly -1-Institutional * Crisil Liquid Fund Index JM Interval Fund -Quarterly -1-Institutional Crisil Liquid Fund Index JM Interval Fund -Quarterly Crisil Liquid Fund Index JM Interval Fund -Quarterly Crisil Liquid Fund Index JM G-Sec Fund - Regular : I sec Composite Index N A JM G-Sec Fund - Regular : - Bonus I sec Composite Index JM G-Sec Fund - Regular : I sec Composite Index N A * In case of JM Short Term Fund - Institutional Daily, returns since last one are not calculated, as the units were first allotted in this plan on April 6, In case of JM Short Term Fund - Institutional, the returns since inception are significantly lower than the benchmark as there were no units for this plan for certain periods since inception. Hence the NAV of this plan was at par while the benchmark appreciated during those periods. * In case of Super Institutional Weekly, returns since last one are not calculated as the units were first allotted on July 25, The returns since inception of the said plan are also significantly lower than the benchmark as there were no units for these plans for certain periods since inception. Hence while the NAV of this plan was at par, the benchmark appreciated during those periods. $ The performance is based on NAV, as on last Business Day of March Past performance may or may not be sustained in future. 3

4 Notes: * Absolute Returns. a) Returns are Compounded Annualised Rate Returns, with reinvestment of dividends, if any. b) Returns of benchmark indices since inception date of the schemes are not available in some cases as the benchmark indices were launched/ changed subsequent to the inception date of the scheme(s). c) For the purpose of calculating returns, inception date is deemed to be the date of allotment. d) Since one has not elapsed from the date of allotment, as on March 31, 2012, for all the plans of JM Fixed Maturity Fund Series XX and Series XXII, the since inception returns are given in absolute terms. DEBT SCHEMES OF JM FINANCIAL MUTUAL FUND: Fund The investment objective of the scheme is to provide income by way of dividend (dividend plans) and capital gains (growth plan) through investing in debt and money market instruments. The Scheme has outperformed the benchmark as interest rates moved up on account of rate hikes and deficit systemic liquidity. The short term rates are expected to remain stable with a softening bias in the ahead. Regular : The investment objective of this scheme is to generate stable long term returns with low risk strategy and capital appreciation/accretion through investments in debt instruments and related securities besides preservation of capital. The Scheme has outperformed the benchmark returns in 1 performance by maintaining a low duration amidst rising interest rate scenario and tight liquidity situation. With the current monetary policy stance of RBI and tight liquidity the short end curve is expected to remain firm. The Scheme will maintain low duration with an actively managed portfolio of debt and money market instruments. Super Plus : The investment objective of the Scheme is to generate stable long term returns with low risk strategy and capital appreciation/ accretion through investments in debt instruments and related securities besides preservation of capital. The investment philosophy of the scheme is to provide income by way of dividend (dividend plans) and capital gains (growth plan) through investing in debt and money market instruments. The Scheme has outperformed the benchmark as the Scheme maintained a low portfolio duration as interest rates rose. Short term rates are expected to remain firm at current levels with a softening bias. Super : The investment objective of this scheme is to generate stable long term returns with low risk strategy and capital appreciation/accretion through investments in debt instruments and related securities besides preservation of capital. The Scheme has outperformed the benchmark returns in 1 performance by maintaining a low duration amidst rising interest rate scenario and tight liquidity situation. With the current monetary policy stance of RBI and tight liquidity the short end curve is expected to remain firm. The Scheme will maintain low duration with an actively managed portfolio of debt and money market instruments. JM Floater Fund- Long Term The Scheme seeks to provide dividend and or capital appreciation through investment in debt and money market instruments. The Scheme has outperformed the benchmark as interest rates moved up on account of rate hikes and deficit systemic liquidity. The short term rates are expected to remain stable with a softening bias in the ahead. JM Floater Fund Short Term The Scheme seeks to provide dividend and or capital appreciation through investment in debt instruments and money market instruments. The Scheme has outperformed the benchmark as interest rates moved up on account of rate hikes and deficit systemic liquidity. The short term rates are expected to remain stable with a softening bias in the ahead. JM MIP Fund (An open- monthly income fund with no assured return) The scheme seeks to generate regular income, primarily through investments in fixed income securities so as to make monthly, quarterly and annual dividend distribution, and declare bonus in the growth option. The Scheme would also aim to achieve capital appreciation through investing a portion of its assets in equity and equity related securities. The Scheme has outperformed the benchmark as the Scheme maintained a low portfolio duration as interest rates moved up. The interest rates are expected to remain firm at current levels with a softening bias. Equities are expected to post moderate performance in the ahead. JM Interval Fund The investment objective of the Scheme and the plans launched there under is to seek to generate predictable returns over a predetermined period by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective plans. The Scheme has outperformed the benchmark in FY as interest rates moved up. JM Income Fund The investment objective of the scheme is to generate stable long term returns with low risk strategy and capital appreciation/accretion through investment in debt instruments and related securities besides preservation of capital. The Scheme has outperformed the benchmark returns in 1 as the Scheme maintained a low duration in view of tight monetary policy by RBI and rising credit spreads. The credit spreads are expected to remain in a range this. However, if RBI resorts to aggressive easing of monetary policy, credit spreads are likely to compress. The Scheme will maintain a lower duration, till the time signs of aggressive easing of monetary policy by RBI are visible. JM Short Term Fund The investment philosophy of the Scheme is to generate regular returns and high level of liquidity with low risk strategy and capital appreciation/accretion through investment in debt instruments and related securities besides preservation of capital. The Scheme provides moderate returns commensurate with its nature. The Scheme may invest up to 100% in money market instruments and short-term debt. The Scheme has outperformed the benchmark returns in 1 performance by maintaining a low duration amidst rising interest rates and tight liquidity situation. The short end curve is expected to remain firm on monetary stance of RBI and tight liquidity situation. The Scheme will increase duration on improvement of liquidity situation and further monetary easing by RBI. JM G-Sec Fund The investment objective of the scheme is to provide ultimate level of safety to its unit holders through investments exclusively in sovereign securities issued by the Central and State Governments. The Scheme has outperformed the benchmark returns in 1 as it maintained a low duration in view of tight monetary policy by RBI and higher fiscal deficit. The government bond yields are expected to remain in range with lower bias on easing monetary policy, global situation and OMO purchases of government securities by RBI. JM Fixed Maturity Fund The investment objective of the Schemes and the plans launched there under is to generate regular returns through investments in fixed income securities maturing on or before the date of the maturity of the respective s. The various plans launched under the various series of JM Fixed Maturity Fund financial are: Scheme Name Tenure Allotment Date Date of sale and repurchase JM Fixed Maturity Fund Series XX - A 367 9/8/2011 9/8/2012 JM Fixed Maturity Fund Series XX - B /9/ /9/2012 JM Fixed Maturity Fund Series XX - C /9/ /3/2012 JM Fixed Maturity Fund Series XX - D 91 29/9/ /12/2011 JM Fixed Maturity Fund Series XXII - A /3/2012 2/4/2013 The various plans under the different Series mentioned above have outperformed the benchmark. The short term rates are expected to move up next and the Schemes may post better returns. Brief background of Sponsors, Trust, Trustee Company and AMC JM Financial Mutual Fund had been constituted as a Trust in 1994, with J.M. Financial & Investment Consultancy Services Pvt. Limited and JM Financial Limited as Settlors and JM Financial Trustee Company Private Limited as the Trustee Company in accordance with the provisions of the Indian Trust Act, 1882 and is duly registered under the Indian Registration Act, JM Financial Mutual Fund was registered with SEBI on September 15, J.M. Financial & Investment Consultancy Services Pvt. Ltd. and JM Financial Ltd. have made initial contributions of Rs. One lakh each towards setting up of JM Financial Mutual Fund, which has been invested in JM Equity Fund. The Trustee Company has entered into an Investment Management Agreement dated September 1, 1994 with JM Financial Asset Management Private Limited (the AMC) to function as the Investment Manager for all the schemes of JM Financial Mutual Fund. Consequent to the change in the shareholding of the AMC in October 2007 and by virtue of being the 4

5 only shareholder holding more than 40% of the equity share capital of the AMC, JM Financial Limited has become the sole Sponsor of JM Financial Mutual Fund. JM Financial Trustee Company Private Limited (Trustee Company) The Trustee Company is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unit holders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines issued by SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. ACCOUNTING POLICIES Accounting Policies are in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations, Unclaimed Redemptions and The Unclaimed Redemption and as on March 31, 2012 is as under: Scheme No. of Investors Amount (Rs. in Lakhs) JM Equity Fund 1, JM Balanced Fund 1, JM Basic Fund Fund JM Floater Fund- Long Term JM MIP Fund JM Income Fund 3, JM Short Term Fund JM G-Sec Fund Investors are requested to reconcile their Bank account statements with their Investments in JM Financial Mutual Fund and contact the AMC in case of any Non receipt of / Redemption proceeds. REDRESSAL OF COMPLAINTS RECEIVED AGAINST THE MUTUAL FUND DURING THE PERIOD FROM APRIL, 2011 TO MARCH, 2012 Total Number of Folios: as on March 31, 2012 Complaint Code Type of Complaint # (a) No of Complaints pending at the beginning of the Year (b) No of complaints received With in 30 days days Resolved days Beyond 180 days Action on (a) and (b) Non Actionable* 0-3 months 3-6 months Pending 6-9 months I A Non Receipt of on Units I B Interest on delayed payment of I C Non Receipt of Redemption Proceeds I D Interest on delayed payment of Redemption II A Non receipt of statement of Account / Unit Certificate II B Discrepancy in Statement of Account II C Non receipt of Annual Report / Abridged Summary III A Wrong switch between Schemes III B Unauthorized switch between Schemes III C Deviation from Scheme attributes III D Wrong or excess charges / load III E Non updation of changes viz. address, PAN, bank details, nomination, etc IV others TOTAL # including against its unauthorized persons/ distributors/ employees. etc. *Non actionable means the complaint that are incomplete / outside the scope of the mutual fund. Statutory Information a. The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution (to the extent contributed) of Rs. 1 lakh for setting up the Fund, and such other accretions / additions to the same. b. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments. c. Full Annual Report will be disclosed on the website ( and shall be available for inspection at the Corporate Office of the Mutual Fund. Present and prospective unit holders can obtain a copy of the Trust Deed, the full Annual Report of the Fund / AMC at a price. Acknowledgements The Trustees would like to thank the Securities and Exchange Board of India, the Reserve Bank of India, Association of Mutual Funds in India for their continued support, co-operation and guidance. The Trustees would also like to thank the Auditors, Custodian, Registrar & Transfer Agents, Bankers and all other service providers for their support. The Trustees also take this opportunity to place on record their appreciation for their contribution made by the employees of JM Financial Asset Management Private Limited and for their dedication, commitment and wholehearted support throughout the months More than 12 months For and on behalf of Board of Trustees JM Financial Trustee Company Private Limited Place : Mumbai Dated : June 20, 2012 Nimesh Kampani Chairman 5

6 The Board of Trustees JM Financial Mutual Fund AUDITORS REPORT We have audited the attached Balance Sheet as at March 31, 2012 and the Revenue Account for the on that date annexed thereto of Fund, - Super Plus, - Super, - Regular, JM Floater Fund- Long Term, JM Floater Fund - Short Term, JM MIP Fund, JM Interval Fund - Quarterly 1, JM Income Fund, JM Short Term Fund, JM G-Sec Fund - Regular, JM Fixed Maturity Fund Series XIX - D, JM Fixed Maturity Fund Series XX - A, JM Fixed Maturity Fund Series XX - B and JM Fixed Maturity Fund Series XXII - A (the schemes) of JM Financial Mutual Fund (the Fund). These financial statements are prepared in accordance with the SEBI (Mutual Funds) Regulations, 1996 (the Regulations) and are the responsibility of the Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Standards on Auditing issued by the Institute of Chartered Accountants of India. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We report that: 1. We have obtained all information and explanations, which, to the best of our knowledge and belief were necessary for the purpose of our audit. 2. The Balance Sheet and the Revenue Account are in agreement with the books of account of the Scheme. 3. In our opinion, valuation methods for Non Traded Securities, adopted by the scheme are fair and reasonable and are in accordance with the guidelines for valuation issued by SEBI and approved by the Trustees. 4. The accounts have been prepared in accordance with the accounting policies and standards as specified in the Ninth Schedule to the SEBI (Mutual Funds) Regulations, 1996 (the Regulations). 5. In our opinion and to the best of our information and according to the explanations given to us, the statement of accounts read with the notes thereon, give the information required by the Regulations and give a true and fair view in accordance with the generally accepted accounting principles in India: a. in the case of Balance Sheet, of the state of affairs of the schemes as at March 31, 2012; and b. in the case of Revenue Account, of the surplus/deficit of the schemes for the on March 31, For N. M. RAIJI & CO. Chartered Accountants Firm Reg. No: W Place: Mumbai Dated: April 25, 2012 J. M. GANDHI Partner Membership No:

7 Abridged audited Balance Sheet as at March 31, 2012 LIABILITIES Fund - Super Plus - Super - Regular (Rs. in lakhs) JM Floater Fund- Long Term 1 Unit Capital 66, , , , , , , , Reserves & Surplus 2.1 Unit Premium Reserves (5.12) (1.01) (10.58) (1.46) (1.20) (3.37) (0.00)* Unrealised Appreciation Reserve Other Reserves 19, , , , , , , , Loans & Borrowings 4 Current Liabilities & Provisions 4.1 Provision for doubtful Income/Deposits Other Current Liabilities & Provisions 2, TOTAL 88, , , , , , , , ASSETS 1 Investments 1.1 Listed Securities: Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds - - 3, , Securitised Debt securities Securities Awaited Listing: Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities Unlisted Securities Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds , Securitised Debt securities Government Securities Treasury Bills Commercial Paper - 18, , , , , , , Certificate of Deposits 87, , , , , , , , Bill Rediscounting Units of Domestic Mutual Fund Foreign Securities Total Investments 88, , , , , , , , Deposits Other Current Assets 3.1 Cash & Bank Balance CBLO/ Reverse Repo Lending , Others , , Deferred Revenue Expenditure (to the extent not written off) TOTAL 88, , , , , , , , Notes to Accounts - Annexure I 0.00* means amount less than one thousand, NA : Not Applicable 7

8 Abridged audited Balance Sheet as at March 31, 2012 LIABILITIES JM Floater Fund - Short Term JM MIP Fund JM Interval Fund - Quarterly 1 JM Income Fund (Rs. in lakhs) JM Short Term Fund 1 Unit Capital 12, , , , Reserves & Surplus 2.1 Unit Premium Reserves - - (0.59) (0.20) - - (0.97) 0.30 (0.03) Unrealised Appreciation Reserve Other Reserves 1, , , Loans & Borrowings 4 Current Liabilities & Provisions 4.1 Provision for doubtful Income/Deposits Other Current Liabilities & Provisions TOTAL 13, , , , , ASSETS 1 Investments 1.1 Listed Securities: Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities Securities Awaited Listing: Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities Unlisted Securities Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities Government Securities Treasury Bills Commercial Paper , , Certificate of Deposits 13, , , , Bill Rediscounting Units of Domestic Mutual Fund Foreign Securities Total Investments 13, , , , Deposits Other Current Assets 3.1 Cash & Bank Balance 0.00* 0.00* CBLO/ Reverse Repo Lending Others Deferred Revenue Expenditure (to the extent not written off) TOTAL 13, , , , , Notes to Accounts - Annexure I 0.00* means amount less than one thousand, NA : Not Applicable 8

9 Abridged audited Balance Sheet as at March 31, 2012 LIABILITIES JM G-Sec Fund - Regular JM Fixed Maturity Fund Series XIX - D JM Fixed Maturity Fund Series XX - A JM Fixed Maturity Fund Series XX - B (Rs. in lakhs) JM Fixed Maturity Fund Series XXII - A 1 Unit Capital , , , NA 2, NA 4, NA 2 Reserves & Surplus 2.1 Unit Premium Reserves Unrealised Appreciation Reserve NA NA NA 2.3 Other Reserves 1, NA (1.04) NA 0.97 NA 3 Loans & Borrowings 4 Current Liabilities & Provisions 4.1 Provision for doubtful Income/Deposits Other Current Liabilities & Provisions NA 0.38 NA 0.16 NA TOTAL 2, , , , NA 2, NA 4, NA ASSETS 1 Investments 1.1 Listed Securities: Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities Securities Awaited Listing: Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities Unlisted Securities Equity Shares Preference Shares Equity Linked Debentures Other Debentures & Bonds Securitised Debt securities Government Securities Treasury Bills Commercial Paper - - 4, , , NA Certificate of Deposits , NA 2, NA 4, NA 1.8 Bill Rediscounting Units of Domestic Mutual Fund Foreign Securities Total Investments , , , NA 2, NA 4, NA 2 Deposits Other Current Assets 3.1 Cash & Bank Balance CBLO/ Reverse Repo Lending 1, NA 3.12 NA NA 3.3 Others NA 0.00* NA 0.02 NA 4 Deferred Revenue Expenditure (to the extent not written off) TOTAL 2, , , , NA 2, NA 4, NA Notes to Accounts - Annexure I 0.00* means amount less than one thousand, NA : Not Applicable 9

10 Abridged Audited Revenue Account For The Year / Period Ended March 31, INCOME Fund - Super Plus Current Current - Super Current (Rs. in lakhs) - Regular Current Interest 33, , , , , , , , Realised Gain / (Loss) on Foreign Exchange Transactions Realised Gains / (Losses) on Interscheme sale of investments - (0.57) - (1.97) Realised Gains / (Losses) on External sale / redemption of investments (0.30) Realised Gains / (Losses) on Derivative Transactions Other Income (A) 33, , , , , , , , EXPENSES 2.1 Management fees Service tax on Management fees Transfer agents fees and expenses Custodian fees Trusteeship fees Commission to Agents Marketing & Distribution expenses Audit fees Other operating expenses (# including Deferred Revenue Expenditure written off) (B) 1, NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD 32, , , , , , , , (A -B = C) 4 Change in Unrealised Depreciation in value of investments (D) NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C-D)) 32, , , , , , , , Change in unrealised appreciation in the value of investments (F) NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD (E + F = G) 32, , , , , , , , Add: Balance transfer from Unrealised Appreciation Reserve Less: Balance transfer to Unrealised Appreciation Reserve (1.15) (0.02) (0.93) Add / (Less): Equalisation (20,131.83) (23,526.05) 1, (25,512.32) 1, (1,046.62) 1, (965.13) 8 Total 12, (7,024.38) 9, (14,251.30) 3, , , Balance brought forward from Balance Sheet 16, , , , , , , , Surplus available for distribution/(deficit) 28, , , , , , , , appropriation 9.1 Income Distributed / period 7, , , , , , , Tax on income distributed / period 2, , , , Retained Surplus / (Deficit) carried forward to Balance sheet 19, , , , , , , , Notes to Accounts - Annexure I 0.00* means amount less than one thousand, NA : Not Applicable 10

11 Abridged Audited Revenue Account For The Year / Period Ended March 31, INCOME JM Floater Fund- Long Term Current JM Floater Fund - Short Term Current Current JM MIP Fund (Rs. in lakhs) JM Interval Fund - Quarterly 1 Current Interest Realised Gain / (Loss) on Foreign Exchange Transactions Realised Gains / (Losses) on Interscheme sale of investments - (0.00)* - (0.07) - (2.47) Realised Gains / (Losses) on External sale / redemption of investments 0.07 (0.65) (15.27) Realised Gains / (Losses) on Derivative Transactions Other Income * (A) EXPENSES 2.1 Management fees Service tax on Management fees Transfer agents fees and expenses Custodian fees 0.00* Trusteeship fees Commission to Agents Marketing & Distribution expenses Audit fees Other operating expenses (# including Deferred Revenue Expenditure written off) (B) NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C) 4 Change in Unrealised Depreciation in value of investments (D) NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C-D)) Change in unrealised appreciation in the value of investments (F) NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD (E + F = G) Add: Balance transfer from Unrealised Appreciation Reserve Less: Balance transfer to Unrealised Appreciation Reserve (3.99) Add / (Less): Equalisation (272.90) , (150.11) (29.62) (43.49) (287.53) Total (234.12) , (119.71) (1.12) (7.17) (143.32) Balance brought forward from Balance Sheet Surplus available for distribution/(deficit) , appropriation 9.1 Income Distributed / period Tax on income distributed / period Retained Surplus / (Deficit) carried forward to Balance sheet , Notes to Accounts - Annexure I 0.00* means amount less than one thousand, NA : Not Applicable 11

12 Abridged Audited Revenue Account For The Year / Period Ended March 31, INCOME (Rs. in lakhs) JM Income Fund JM Short Term Fund JM G-Sec Fund - Regular JM Fixed Maturity Fund Series XIX - D Current Current Current Current Period Ended Interest , Realised Gain / (Loss) on Foreign Exchange Transactions Realised Gains / (Losses) on Interscheme sale of investments (0.07) Realised Gains / (Losses) on External sale / redemption of investments Realised Gains / (Losses) on Derivative Transactions Other Income (A) , EXPENSES 2.1 Management fees Service tax on Management fees Transfer agents fees and expenses * 2.4 Custodian fees Trusteeship fees Commission to Agents * 2.7 Marketing & Distribution expenses Audit fees * 2.9 Other operating expenses (# including Deferred Revenue Expenditure written off) (B) NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD , (A -B = C) 4 Change in Unrealised Depreciation in value of investments (D) NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C-D)) , Change in unrealised appreciation in the value of investments (F) 7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD (E + F = G) , Add: Balance transfer from Unrealised Appreciation Reserve Less: Balance transfer to Unrealised Appreciation Reserve (0.16) - (0.24) (75.16) 7.3 Add / (Less): Equalisation (39.53) (141.16) (3,145.20) 4, (158.99) Total (88.24) (405.56) 4, (97.68) Balance brought forward from Balance Sheet , Surplus available for distribution/(deficit) , , , appropriation 9.1 Income Distributed / period Tax on income distributed / period Retained Surplus / (Deficit) carried forward to Balance sheet , , , Notes to Accounts - Annexure I 0.00* means amount less than one thousand, NA : Not Applicable 12

13 Abridged Audited Revenue Account For The Year / Period Ended March 31, INCOME JM Fixed Maturity Fund Series XX - A Current Period Ended JM Fixed Maturity Fund Series XX - B Current Period Ended (Rs. in lakhs) JM Fixed Maturity Fund Series XXII - A Current Period Ended Interest NA 1.57 NA 0.86 NA 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions Realised Gains / (Losses) on Interscheme sale of investments Realised Gains / (Losses) on External sale / redemption of investments NA 1.6 Realised Gains / (Losses) on Derivative Transactions Other Income (A) NA 1.57 NA 1.01 NA 2 EXPENSES 2.1 Management fees 3.68 NA 1.19 NA 0.02 NA 2.2 Service tax on Management fees 0.38 NA 0.12 NA 0.00* NA 2.3 Transfer agents fees and expenses 2.13 NA Custodian fees 0.10 NA Trusteeship fees 1.01 NA 0.65 NA 0.01 NA 2.6 Commission to Agents 0.16 NA Marketing & Distribution expenses 1.00 NA Audit fees 0.23 NA 0.02 NA 0.00* NA 2.9 Other operating expenses 5.50 NA 0.63 NA 0.01 NA (# including Deferred Revenue Expenditure written off) (B) NA 2.61 NA 0.04 NA 3 NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD NA (1.04) NA 0.97 NA (A -B = C) 4 Change in Unrealised Depreciation in value of investments (D) NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C-D)) NA (1.04) NA 0.97 NA 6 Change in unrealised appreciation in the value of investments (F) NA NA NA 7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD (E + F = G) NA NA NA 7.1 Add: Balance transfer from Unrealised Appreciation Reserve Less: Balance transfer to Unrealised Appreciation Reserve (165.19) NA (106.96) NA (13.54) NA 7.3 Add / (Less): Equalisation Total NA (1.04) NA 0.97 NA Balance brought forward from Balance Sheet Surplus available for distribution/(deficit) NA (1.04) NA 0.97 NA 9 appropriation 9.1 Income Distributed / period Tax on income distributed / period Retained Surplus / (Deficit) carried forward to Balance sheet NA (1.04) NA 0.97 NA Notes to Accounts - Annexure I 0.00* means amount less than one thousand, NA : Not Applicable 13

14 Notes to Accounts - Annexure I to the Abridged Balance Sheet & Revenue Account for the Year/Period March 31, Investments 1.1 Investments of the schemes are registered in the name of the Trustees for the benefits of the scheme s unit holders. 1.2 Open positions of derivatives as at 31st March, 2012: Rs. Nil (as at 31st March, 2011): Rs. Nil 1.3 During the 31st March, 2012, the following debt and liquid schemes of JM Financial Mutual Fund had invested in the following securities of the Sponsor and the Associate / Group Companies of the Sponsor: Associate/Group Co./Sponsor Reliance Capital Limited Reliance Capital Limited 14 Scheme Instrument Purchase Amount (Rs. In Lakhs) Sale/ Redemption Amount (Rs. In Lakhs) Market Value as on Amount (Rs. In Lakhs) Commercial 69, , Fund Paper Manager Fund - Super Plus Manager Fund - Super Manager Fund - Regular JM MIP Fund Commercial Paper 20, , Reliance Capital Limited Commercial Paper 17, , Reliance Capital Commercial 14, , Limited Paper Reliance Capital Commercial Limited Paper Reliance Capital JM Short Term Commercial 9, , Limited Fund Paper Reliance Capital JM Fixed Maturity Commercial Limited Fund Series XVIII - Paper 15 Months 1 Reliance Capital JM Fixed Maturity Commercial 1, Limited Fund Series XX - Paper A Aggregate Investment by all schemes in Associates / Group Companies Associate/Group Co./Sponsor Instrument Purchase Amount (Rs. In Lakhs) Ambuja Cements Limited Equity Shares 1, Mcleod Russel India Limited Equity Shares Reliance Capital Limited Commercial Paper 1,33, Supreme Infrastructure India Limited Equity Shares Associate/ Group Co./ Sponsor Reliance Capital Limited Reliance Capital Limited Scheme Instrument Purchase Amount (Rs. In Lakhs) Sale/ Redemption Amount (Rs. In Lakhs) Market Value as on Amount (Rs. In Lakhs) Commercial 75, , , Fund Paper Manager Fund - Super Plus Reliance Capital Limited Manager Fund - Super Reliance Manager Capital Limited Fund - Regular Reliance JM Floater Fund- Capital Limited Long Term Reliance JM MIP Fund Capital Limited Reliance JM Income Fund Capital Limited Reliance JM Short Term Capital Limited Fund Reliance JM Fixed Maturity Capital Limited Fund Series XVIII - 15 Months 1 Commercial Paper Commercial Paper Commercial Paper Commercial Paper Commercial Paper Commercial Paper Commercial Paper Commercial Paper 17, , , , , , , , Aggregate Investment by all schemes in Associates / Group Companies Associate/Group Co./Sponsor Instrument Total Ambuja Cements Limited Equity Shares 0.75 Graphite India Limited Equity Shares Hinduja Ventures Limited Equity Shares JM Financial Limited Equity Shares Mangalore Refinery and Petrochemical Limited Equity Shares 1.90 Mcleod Russel India Limited Equity Shares Reliance Capital Limited Commercial Paper 132, Equity Shares Supreme Infrastructure India Limited Equity Shares Open position of Securities Borrowed and / or Lent by the schemes as at 31st March, 2012 Rs. Nil (as at 31st March, 2011:.Rs.Nil). 1.5 Non Performing Assets: The value for following Non Performing Assets have been written off in the accounts in earlier s and are carried at nominal value. Company Type of Scheme Security Quantity Amount (Rs. in Lakhs) HMG Industries Limited Debentures JM Income Fund 5, # Company Type of Security Scheme Quantity Amount (Rs. in Lakhs) HMG Industries Limited Debentures JM Income Fund 5, # # Less than Rs. One thousand. 1.6 Aggregate unrealized gain and depreciation as at the end of the financial / period and percentage to net assets. Scheme Provision for depreciation on global basis Amount (Rs. In Lakhs) Provision for depreciation on global basis (% of Net Assets) Fund Super Plus * Super Regular * 0.00* JM Floater Fund- Long Term JM Floater Fund - Short Term JM MIP Fund JM Income Fund JM Short Term Fund * JM G-Sec Fund - Regular * - JM Fixed Maturity Fund Series XVIII - 15 Months JM Fixed Maturity Fund Series XIX - A JM Fixed Maturity Fund Series XIX - B JM Fixed Maturity Fund Series XIX - C JM Fixed Maturity Fund Series XIX - D JM Fixed Maturity Fund Series XX - A JM Fixed Maturity Fund Series XX - B JM Fixed Maturity Fund Series XX - C JM Fixed Maturity Fund Series XX - D JM Fixed Maturity Fund Series XXII - A Scheme Unrealised appreciation on global basis Amount (Rs. In Lakhs) Unrealised appreciation on global basis (% of Net Assets) Fund * - - Super Plus Super * Regular JM Floater Fund- Long Term