Report of the Trustee Auditors Report Abridged Audited Balance Sheet Abridged Audited Revenue Account... 23

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2 Contents Report of the Trustee... 1 Auditors Report... 7 Abridged Audited Balance Sheet Abridged Audited Revenue Account Notes to Accounts Key Statistics Risk Factors and Statutory Information Mahindra Mutual Fund 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai Tel: mutual@kotak.com Website : assetmanagement.kotak.com BOARD OF DIRECTORS Mahindra Trustee Company Limited CIN: U65990MH1995PLC (Trustee to Mahindra Mutual Fund) Mr. Amit Desai - Chairman Mr. Arun Palkar Mr. Chandrashekhar Sathe Mr. Balan Wasudeo Mr. Noshir Dastur INVESTOR RELATIONS OFFICER R. Chandrasekaran Tel: mutual@kotak.com Registrar Computer Age Management Services Pvt. Limited No 178/10, M G R Salai, Nungambakkam, Chennai Tel: enq_k@camsonline.com BOARD OF DIRECTORS Mahindra Asset Management Company Limited CIN: U65991MH1994PLC (Investment Manager to Mahindra Mutual Fund) Mr. Uday S. - Chairman Mr. Nilesh Shah - Managing Director Mr. Sukant S. Kelkar Mr. C. Jayaram Mr. Bipin Shah Mr. Gaurang Shah Mr. Pranab Kumar Datta Mr. Nalin Shah AUDITORS Price Waterhouse Chartered Accountants 1

3 Report of the Trustee Mahindra Mutual Fund 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai Trustee Report We have pleasure in presenting the Eighteenth Annual Report of the Schemes of Mahindra Mutual Fund ( the Fund ) for the year ended March 31, 2016, along with the audited financial statements for that period. 1. Scheme Performance, Future Outlook and Operations of the Schemes Investors are required to refer to page no. 92 to 113 for Key performance statistics of the schemes. Outlook on the Equity Markets On the equity market front, FY 16 witnessed turbulence owing to global headwinds led by the reversal in US Federal Reserve Monetary Policy stance, slowing Chinese economy, and currency devaluation by China. This was visible in the performance of key indices; S&P BSE Sensex and CNX Nifty ended in the red at % and -9.87% respectively, while the CNX Midcap index ended at -6.44%. However, India remained one of the better performing markets globally on the back of improved valuation comfort and relatively better growth prospects. Outlook on the Debt Markets On the fixed income front expectations of monetary easing by the Reserve bank of India (RBI) led to easing across the yield curve. The benchmark 10 year gilt ended the year at 7.47% from 7.74% at the start of the financial year. In FY16 the benchmark repo rate was cut by 75 bps to 6.75%. It was also heartening to note that the government continued to pave the way towards fiscal prudence by targeting 3.5% fiscal deficit for FY16. The headline Consumer Price Index (CPI) was contained at 5.18% on a YoY basis in February Global market outlook painted a bleak picture through the last year. Liquidity injection measures by Central Banks continued in most developed economies. Deflationary expectations, declining global commodity prices, negative treasury yields in most parts of Euro zone, Japan, etc. were some of the key focus points last year. The US Fed announced a 25 bps rate hike and pledged a gradual pace of increase to more normalize the interest rates. A brief commentary on the operations and performance of our schemes areas follows: Select Focus Fund: Select Focus outperformed its benchmark in FY This was largely on account of right sector allocation as well as positive selection of stocks. The fund has consistently delivered better than benchmark returns since inception Opportunities: Opportunities outperformed its benchmark in FY This was largely on account of positive selection of stocks. The scheme has also outperformed the benchmark in the period since inception. Midcap Scheme: The scheme outperformed its benchmark during the year under review largely owing to positive selection of sectors and stocks. The fund has outperformed its benchmark since inception. Emerging Equity Scheme: The scheme has outperformed its benchmark in FY This was largely on account of positive selection of sectors and stocks. The returns since inception till date have exceeded benchmark returns. Mahindra 50 Unit Scheme: The scheme has outperformed its benchmark in FY This was largely on account of positive selection of stocks. The returns since inception till date have also been higher than the benchmark. Classic Equity: Despite underperformance against its benchmark in FY 2016, the fund delivered better than benchmark returns since inception till date. Mahindra Balance Unit Scheme 99: The scheme has underperformed its benchmark in FY The benchmark has 65% allocation to equities whereas the fund maintains a 69%-70% allocation to equities at all point in time. The equity markets also ended in the red at the end of the year. Further the duration strategy in the debt portion of the fund saw resilience only during the end of the year. The scheme has been in inception much before the formation of its benchmark and therefore its returns during this period cannot be accurately compared with the benchmark. Tax Saver: Despite marginal underperformance against its benchmark in FY 2016, the fund has delivered better than benchmark returns since inception till date. Equity Arbitrage Scheme: The scheme underperformed its benchmark in FY However, the returns need to be compared on a post-tax basis wherein the scheme has outperformed its benchmark. The returns since inception till date too have outperformed the benchmark. Equity Savings Fund: Despite underperformance against its benchmark in FY 2016, the fund has delivered better than benchmark returns since inception till date. Infrastructure & Economic Reform Fund: The scheme has outperformed its benchmark during FY 2016and since inception till date. This can be attributed to the portfolio strategy of having invested in a down cyclein flow related companies exhibiting high return ratio. World Gold Fund: The fund has underperformed its benchmark in FY This is attributable to the underperformance of the underlying fund to its benchmark. World Gold Fund has outperformed its benchmark in period since inception. US Equity Fund: The fund underperformed its benchmark in FY 2016 and in period since inception. This is attributable to underperformance in the underlying fund. Asset Allocator Fund: The scheme has outperformed its benchmark during FY This is attributable to a low equity exposure as assigned by the quantitative model run for portfolio construction. The fund has also outperformed the benchmark since inception till date. Global Emerging Market Fund: The scheme has underperformed its benchmark in FY This is attributable to underperformance in the underlying funds. The scheme return since inception till date has exceeded benchmark returns. Mahindra Gilt Unit Scheme 98 Investment Plan: The scheme underperformed its benchmark in FY 2016 as the duration strategy of the fund saw resilience only during the end of the year. The scheme has been in inception much before the formation of the benchmark and therefore does not have an appropriate comparison for that period under assessment. Mahindra Bond Unit Scheme 99: The scheme underperformed its benchmark in FY 2016 as the duration strategy of the fund saw resilience only during the end of the year. The scheme has been in inception much before the formation of the benchmark and therefore does not have an appropriate comparison for that period under assessment. Banking & PSU Debt Fund: The scheme outperformed its benchmark in FY The scheme has been in inception much before the formation of the benchmark and therefore does not have an appropriate comparison for that period under assessment. Bond Short Term Plan: The scheme underperformed its benchmark in FY This was attributable to the relatively conservative portfolio approach adopted by the fund vis-àvis the benchmark. In the period since inception, Bond Short Term has outperformed the benchmark. 1

4 Medium Term Fund: The scheme outperformed its benchmark in FY 2016 and marginally underperformed its benchmark since inception. The outperformance is attributable to the accrual strategy adopted to capture carry with medium term duration for the investors. Low Duration Fund: The scheme has outperformed its benchmark in FY 2016 and has marginally underperformed the benchmark in the period since inception. The outperformance can be attributed to the higher duration relative to the benchmark and higher exposure to AAA rated paper. Monthly Income Plan: The scheme has underperformed its benchmark in FY 2016 and in the period since inception. The equity markets also ended in the red at the end of FY Further the duration strategy in the debt portion of the fund saw resilience only during the end of the year. Mahindra Liquid Scheme and Floater Short Term Scheme: The performances of both the schemes exceed the benchmark returns in FY This may be attributable to the extended availability of high yields in the short term money market. The returns since inception till date have also exceeded benchmark returns. Treasury Advantage Fund: The fund outperformed its benchmark in FY 2016 and in the period since inception. The fund was running higher duration relative to the benchmark and this resulted in outperformance during the year. Flexi Debt Scheme: The fund outperformed its benchmark in FY 2016 and in the period since inception. This can be attributed to the active duration management strategy of the fund against the benchmark. Further the fund had exposure to inflation index bonds which were bought back by RBI, thus adding to the outperformance during the year. Income Opportunities Fund: The fund outperformed its benchmark in FY 2016 and in the period since inception. The fund took higher exposure to sub AAA papers vis-à-vis the benchmark and this resulted in its outperformance. Corporate Bond Fund: The fund has marginally underperformed its benchmark in FY This is attributable to the fact that the benchmark employs a duration strategy whereas the fund maintains a run-down maturity strategy. The scheme has outperformed its benchmark in the period since inception. Multi Asset Allocation Fund: The scheme has underperformed the benchmark in FY The scheme has underperformed the benchmark since inception due to the conservative approach adopted by the scheme earlier. Due to this, the lag effect of underperformance in the previous years and the recent volatility witnessed is getting reflected in the inception performance. Hybrid Fixed Term Plan - Series II: The scheme underperformed the benchmark in FY 2016 and in the period since inception. This is attributable to the fact that the predominant debt component of the benchmark comprises composite duration fund index. On the other hand, the debt component of the scheme comprises hold-tomaturity portfolio devised during the inception of the scheme. Thus the fund is unable to actively churn and rebalance the portfolio as need may arise. Gold Fund: The scheme has underperformed the benchmark in FY 2016 and in period since inception. This is attributable to the fact that the exchange prices are trading at a discount (to physical gold which is the benchmark) due to 1% VAT impact. This is getting highlighted as underperformance. Also, the gold ETF cannot generate alpha and has to mirror the underlying asset (gold). Thus, the expense ratio difference, which is not present in the physical gold prices, shows as underperformance for the scheme. Gold ETF: The ETF scheme has marginally underperformed the benchmark (physical gold price) in FY 2016 and also in the period since inception. This is attributable to the fact that gold ETF cannot generate alpha and has to mirror the underlying asset (gold). Thus, the expense ratio difference, which is not present in the physical gold prices, shows as underperformance for the scheme. PSU Bank ETF: The ETF scheme has outperformed the CNX PSU Bank Index benchmark since inception. The scheme has outperformed the benchmark in the FY 2016 period. The outperformance is due to reinvestment of dividend amount into the scheme received from index constituents. Sensex ETF: The scheme has outperformed its commensurate benchmark in the financial year and in the period since inception. The outperformance is due to reinvestment of dividend amount into the scheme received from index constituents. Nifty ETF: The scheme has outperformed its commensurate benchmark in the financial year and in the period since inception. The outperformance is due to reinvestment of dividend amount into the scheme received from index constituents. Banking ETF: The fund outperformed its benchmark in FY 2016 and in the period since inception. The outperformance is due to reinvestment of dividend amount into the scheme received from index constituents. Fixed Maturity Plans (FMPs) and Quarterly Interval Plans (QIPs): FMPs/QIPs have generally underperformed their benchmarks during the year. This is because the portfolios are not the true reflection of the benchmark and only represent the investment horizon; and not the investment strategy. Moreover, the portfolio construction of the FMPs/QIPs isbased on a narrowly defined setup, the limitations of which are not incumbent on the benchmark. Additionally, the cost component of the FMPs/QIPs also tends to drag the return. 2. Brief background of Sponsor, Trust, Trustee Company and AMC a) Sponsor Mahindra Mutual Fund is sponsored by Mahindra Bank Limited (KMBL). The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has contributed Rs. One Lakh as the initial contribution to the corpus for the setting up of the Trust. The Sponsor has also contributed Rs. One Lakh Fifty Thousand as additional corpus. KMBL started with a capital base of Rs lakh. From being a provider of a single financial product, KMBL grew substantially during into a highly diversified financial services company. As on March 31, 2016, the net worth (capital plus reserves & surplus) of Bank is Rs. 23,959 crores. The Sponsor and its subsidiaries/associates offer wide ranging financial services such as loans, lease and hire purchase, consumer finance, home loans, commercial vehicles and car finance, investment banking, stock broking, mutual funds, primary market distribution of equity and debt products and life insurance. b) Mahindra Mutual Fund Mahindra Mutual Fund (the Mutual Fund ) has been constituted as a trust on May 20, 1996, in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) with Mahindra Bank Limited, as the Sponsor and Mahindra Trustee Company Limited as the Trustee. The Trust Deed has been registered under the Indian Registration Act, Mahindra Asset Management Company Limited has been appointed as the Asset Management Company of the Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 20, 1996, as amended up to date, and executed between the Trustee and the AMC. The Mutual Fund was registered with SEBI on June 23, 1998 under Registration Code MF/038/98/1. c) Mahindra Trustee Company Limited Mahindra Trustee Company Limited is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unitholders. 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 the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. However, under Regulation 18(26) of SEBI (Mutual Funds) Regulations, 1996, the Trustees shall not be liable for acts done in good faith if they have exercised adequate due diligence honestly. 2

5 d) Mahindra Asset Management Company Limited Mahindra Asset Management Company Limited (AMC) is a limited company incorporated under the Companies Act, 1956 on August 2, Mahindra Asset Management Company Limited has been appointed as the Asset Management Company of the Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 20, 1996, as amended up to date, and executed between the Trustee and the AMC. Mahindra Asset Management Company Limited is a wholly owned subsidiary of the Sponsor, Mahindra Bank Ltd. An approval by the Division of Funds, Investment Management Department under the SEBI (Portfolio Manager) Regulations, 1993 and Mutual Funds Division of SEBI under the SEBI ('Mutual Funds') Regulations, 1996, has been granted to the AMC for undertaking Portfolio Management Service (PMS). There is no conflict of interest between the Mutual Fund and the PMS activity. Mahindra Pension Fund Limited, a subsidiary of Mahindra Asset Management Company Limited is providing pension fund management services. Mahindra Asset Management Company has received a no objection certificate from SEBI for management of pension funds through the subsidiary. 3. Investment Objectives of the Schemes Mahindra 50 Unit Scheme: An open ended equity scheme. To generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go up to 59 companies but will not exceed 59 at any point in time. Mahindra Balance Unit Scheme 99: An open ended balanced scheme. To achieve growth by investing in equity and equity related instruments, balanced with income generation by investing in debt & money market instruments. Asset Allocator: An open ended fund of funds scheme. To generate long-term capital appreciation from a portfolio created by investing in specified open-ended equity, and debt schemes of Mahindra Mutual Fund. Opportunities: An open ended equity growth scheme. To generate capital appreciation from a diversified portfolio of equity and equity related securities. Midcap Scheme: An open ended equity growth scheme. To generate capital appreciation from a diversified portfolio of equity and equity related securities. Classic Equity: An open ended equity growth scheme. To generate capital appreciation from a diversified portfolio of equity and equity related instruments. Emerging Equity Scheme: An open ended equity growth scheme. To generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. Tax Saver Scheme: An open ended equity linked tax savings scheme. To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. Global Emerging Market Fund: An open ended equity Scheme. To provide long-term capital appreciation by investing in an overseas mutual fund scheme that invests in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets. Select Focus Fund: An open ended equity scheme. To generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. Equity Arbitrage Scheme: An open ended equity growth scheme. To generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. Equity Savings Fund: An open ended equity scheme. To generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments. Infrastructure & Economic Reform Fund: An open ended equity scheme. To generate long-term capital appreciation from a diversified portfolio of predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms. India Growth Fund Series I A 3 years close ended equity scheme. The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity & equity related instruments across market capitalisation and sectors. World Gold Fund: An open ended fund of funds scheme. To provide long term capital appreciation by investing predominantly in units of Falcon Gold Equity Fund. US Equity Fund: An open ended fund of funds scheme investing overseas. To provide long term capital appreciation by investing in units of a fund that invests predominantly in equity and equity-related securities of companies having assets, products or operations in the United States Mahindra Gilt Unit Scheme 98: An open ended dedicated gilt scheme. To generate risk free returns through investments in Sovereign securities issued by the Central Government and / or State Government and / or reverse repo in such securities. Banking & PSU Debt Fund: An open ended debt scheme. To generate income by predominantly investing in debt & money market securities is sued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security uncondition ally guaranteed by the Govt. of India. Mahindra Bond Unit Scheme 99: An open ended debt scheme. To create a portfolio of debt instruments of different maturities so as to spread the risk across a wide maturity horizon and different kinds of issuers in the debt markets. Bond Short Term Plan: An open ended debt scheme. To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities, so as to spread the risk across different kinds of issuers in the debt market. Monthly Income Plan: An open ended income scheme (Monthly Income is not assured & is subject to availability of distributable surplus). To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. Mahindra Liquid Scheme: An open Ended Debt Scheme.To provide reasonable returns and high level of liquidity by investing in Debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the Debt Markets. Floater Short Term Scheme: An open ended debt scheme. To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. Treasury Advantage Fund: An open ended debt scheme. To generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. Flexi Debt Scheme: An open ended debt scheme.to maximize returns through an active management of a portfolio of debt and money market securities Income Opportunities Fund: An open ended debt scheme. To generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. Multi Asset Allocation Fund: An open ended debt scheme. To generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. Medium Term Fund: An open ended debt scheme. To generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. Corporate Bond Fund: An open ended debt scheme. To generate income and capital appreciation largely through a focus on investments in corporate debt securities. 3

6 Low Duration Fund: An open ended debt scheme. To generate income through investment primarily in low duration debt & money market securities. Gold Fund: An open ended Fund of Funds. The investment objective of the scheme is to generate returns by investing in units of Gold ETF. Gold ETF: An open ended Gold exchange traded Fund. To generate returns that is in line with the returns on investment in physical gold, subject to tracking errors. PSU Bank ETF: An open ended exchange traded fund. To provide returns that closely corresponds to the total returns of CNX PSU Bank Index, subject to tracking errors. Sensex ETF: An open ended exchange traded fund. To provide returns before expenses that closely corresponds to the total returns of the BSE SENSEX subject, to tracking errors. Nifty ETF: An open ended exchange traded fund. To provide returns before expenses that closely corresponds to the total returns of the S&P CNX Nifty subject, to tracking errors. Banking ETF: An open ended exchange traded fund. To provide returns before expenses that closely corresponds to the total returns of stocks as represented by the CNX Bank Index subject to tracking errors. FMP Series 105, FMP Series 106, FMP Series 107, FMP Series 108, FMP Series 109, FMP Series 110, FMP Series 111, FMP Series 112, FMP Series 113, FMP Series 114, FMP Series 115, FMP Series 116, FMP Series 117, FMP Series 118, FMP Series 119, FMP Series 122, FMP Series 124, FMP Series 127, FMP Series 128, FMP Series 129, FMP Series 131, FMP Series 132, FMP Series 133, FMP Series 135, FMP Series 136, FMP Series 137, FMP Series 138, FMP Series 139, FMP Series 140, FMP Series 141, FMP Series 142, FMP Series 143, FMP Series 144, FMP Series 145, FMP Series 146, FMP Series 147, FMP Series 148, FMP Series 149, FMP Series 150, FMP Series 151, FMP Series 152, FMP Series 153, FMP Series 154, FMP Series 155, FMP Series 156, FMP Series 157, FMP Series 158, FMP Series 159, FMP Series 160, FMP Series 161, FMP Series 162, FMP Series 163, FMP Series 171, FMP Series 172, FMP Series 175, FMP Series 176, FMP Series 178, FMP Series 179, FMP Series 180, FMP Series 181, FMP Series 182, FMP Series 183, FMP Series 185, FMP Series 186, FMP Series 187, FMP Series 189, FMP Series 190, FMP Series 191 and FMP Series 192:Close ended debt schemes. To generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. Quarterly Interval Plan 1, Quarterly Interval Plan 2, Quarterly Interval Plan 3, Quarterly Interval Plan 4, Quarterly Interval Plan 5, Quarterly Interval Plan 6, Quarterly Interval Plan 7, Quarterly Interval Plan 8, Quarterly Interval Plan 9, Quarterly Interval Plan 10: debt oriented interval funds. To generate returns through investments in debt and money market instruments. Hybrid Fixed Term Plan Series-2 -Close Ended Debt Scheme with 24 months maturity. To generate income and minimize interest rate volatility by investing in Debt & Money Market securities that mature on or before the maturity of the scheme and also to generate capital appreciation by investing in equity/ equity related instruments. 4. Significant Accounting Policies: The Accounting Policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations, Unclaimed Dividends & Redemptions Following are the scheme wise details of unclaimed dividend and redemption: Scheme Name Unclaimed Redemption No. of Amount Investors Unclaimed Dividend No. of Amount Investors FMP 12M Series 7 ** FMP 12M Series 8 ** FMP 12M Series 9 ** FMP 12M Series 10 ** FMP 17M Series 1 ** FMP 18M Series 3 ** Balance , Bond , Bond Short Term PSU Bank ETF Classic Equity , Equity Arbitrage Fund Income Opportunities Fund Dynamic Asset Allocation ** Dynamic FOF ** FMP 370 Days Series 9 ** 2.00 # Tax Saver , Emerging Equity FMP Series 1 ** Floater Short Term Treasury Advantage Fund Flexi Debt Asset Allocator Fund Flexi FOF - Series II ** Quarterly Interval Plan-Series I Global Emerging Market Fund Global India ** Gold Fund Gold ETF 2.00 # - - Hybrid Fixed Term Plan Series - I **

7 Scheme Name Unclaimed Redemption No. of Investors Amount Unclaimed Dividend No. of Investors Amount 50 1, , Corporate Bond Fund Dynamic Income ** Gilt Investment Regular Plan Banking And PSU Debt Fund Infr. And Economic Reform Fund Monthly Income Plan , Low Duration Fund 1.00 # Opportunities 2, , FMP 6M Series 9 ** FMP 3M Series 7 ** US Equity Fund Lifestyle ** Liquid Multi Asset Allocation Fund Medium Term Fund Midcap , MNC ** Nifty ETF Quarterly Interval Plan-Series II Quarterly Interval Plan-Series III Quarterly Interval Plan- Series IV Quarterly Interval Plan-Series 5 Quarterly Interval Plan-Series 6 Quarterly Interval Plan Series 7 Quarterly Interval Plan Series 9 Quarterly Interval Plan Series # FMP- Series XVI ** # Scheme Name Unclaimed Redemption No. of Amount Investors Unclaimed Dividend No. of Amount Investors FMP Series FMP Series FMP Series # - - FMP Series 38 ** # FMP 6M Series 7 ** FMP Series # - - FMP Series FMP Series # - - FMP Series 52 ** 1.00 # - - FMP Series # - - FMP Series 55 ** 3.00 # - - FMP Series # - - FMP Series # - - FMP Series FMP Series Select Focus Fund , Sensex ETF FMP Series FMP Series 120 ** 1.00 # - - Technology ** Twin Advantage Sr II ** Twin Advantage Sr III ** Wealth Builder Series I ** Indo World Infrastructure Fund World Gold Fund Equity Saving Fund 1.00 # Total 9,509 1, , ** Matured Schemes # Less than Rs Lacs 6. Statutory Information: The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution of Rs. One Lacs for setting up the Fund and such other additions to the same. 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. 5

8 Full Annual Report shall be disclosed on the website (assetmanagement.kotak.com) and shall be available for inspection at the Head Office of Mahindra Mutual Fund. Present and prospective unit holders can obtain copy of the trust deed, the full Annual Report of the Fund / AMC at a price. 7. Disclosure of investor complaints. In accordance with SEBI circular No. Cir / IMD / DF / 2 / 2010 dated May 13, 2010, disclosure on investor complaints with respect to schemes of Mahindra Mutual Fund during Financial Year is enclosed herewith vide Annexure 2. Complaint Code Type of Complaint# Redressal of Complaints received against Mutual Funds (MFs) during Name of Mutual Fund and total number of folios: Mahindra Mutual Fund, Nos. of folios (a) No.of Complaints pending at the beginning of the year (b) No of complaints received during the year April 2015 To March 2016 Within 30 days days Resolved days Action on (a) and (b) Beyond 180 days Non Actionable* IA Non-Receipt of Dividend on Units IB Interest on delayed payment of Dividend IC Non-Receipt of Redemption Proceeds ID Interest on delayed payment of Redemption IIA Non receipt of Statement of Account/Unit Certificate IIB Discrepancy in Statement of Account IIC Non receipt of Annual Report/Abridged Summary IIIA Wrong switch between Schemes IIIB Unauthorized switch between Schemes IIIC Deviation from Scheme attributes IIID Wrong or excess charges/load IIIE Non updation of changes viz.address, PAN, bank details, nomination, etc IV Others TOTAL For Mahindra Trustee Company Limited 0-3 months Pending 3-6 months 6-9 months 9-12 months Balan Wasudeo Director Chandrashekhar Sathe Director Place: Mumbai Date: June 17, 2016 General Policies and Procedures for exercising the voting rights In view of SEBI guidelines related to Role of Mutual Funds in Corporate Governance of Public Listed Companies, the company has formulated its Policy for Proxy Voting in Public Listed Companies. The said policy and details of actual exercise of proxy votes along with the summary of votes cast and the auditors certification during the Financial Year is available on our website assetmanagement.kotak.com and in full Annual Report for the Financial Year

9 INDEPENDENT AUDITORS REPORT To the Board of Trusteeof Mahindra Mutual Fund Report on the Financial Statements 1. We have audited the accompanying financial statements of the under mentioned Schemes of Mahindra Mutual Fund (the Schemes ),which comprise the Balance Sheets as at March 31, 2016, and the related Revenue Accounts and Cash Flow Statements, where applicable, for the year/period then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report. The Schemes Year/Period Mahindra 50 Unit Scheme April 1, 2015 to March 31, 2016 Mahindra Balance Unit Scheme 99 April 1, 2015 to March 31, 2016 Opportunities April 1, 2015 to March 31, 2016 Midcap Scheme April 1, 2015 to March 31, 2016 ClassicEquity Scheme April 1, 2015 to March 31, 2016 Tax Saver Scheme April 1, 2015 to March 31, 2016 Monthly Income Plan April 1, 2015 to March 31, 2016 Asset Allocator Fund April 1, 2015 to March 31, 2016 Equity Arbitrage Scheme April 1, 2015 to March 31, 2016 Emerging Equity Scheme April 1, 2015 to March 31, 2016 Gold ETF April 1, 2015 to March 31, 2016 Global Emerging Market Fund April 1, 2015 to March 31, 2016 PSU Bank ETF April 1, 2015 to March 31, 2016 Sensex ETF April 1, 2015 to March 31, 2016 Select Focus Fund April 1, 2015 to March 31, 2016 Nifty ETF April 1, 2015 to March 31, 2016 Multi Asset Allocation Fund April 1, 2015 to March 31, 2016 Gold Fund April 1, 2015 to March 31, 2016 Hybrid Fixed Term Plan Series II April 1, 2015 to March 31, 2016 Equity Saving Fund April 1, 2015 to March 31, 2016 Banking ETF April 1, 2015 to March 31, 2016 Infrastructure& Economic Reform Fund April 1, 2015 to March 31, 2016 US Equity Fund April 1, 2015 to March 31, 2016 World Gold Fund April 1, 2015 to March 31, 2016 India Growth Fund Series I April 13, 2015 to March 31, 2016 Capital Protection Oriented Scheme - Series 1 September 7, 2015 to March 31, 2016 NV 20 ETF November 12, 2015 to March 31, 2016 Capital Protection Oriented Scheme -Series 2 November 16, 2015 to March 31, 2016 Capital Protection Oriented Scheme -Series 3 February 12, 2016 to March 31, 2016 Trustee sand Management s Responsibility for the Financial Statements 2. The Trustee of Mahindra Mutual Fund and the Management of Mahindra Asset Management Company Limited (the Management ) are responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Schemes in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto (the Regulations ). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors Responsibility 3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to thepreparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2016 by correspondence with the custodian/others and registrar and transfer agent, respectively.an audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Trustee and the Management, as well as evaluating the overall presentation of the financial statements. 5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion 6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements give the information required by the Regulationsin the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Balance Sheets, of the state of affairs of the Schemes as at March 31, 2016; (b) in the case of the Revenue Accounts, of the net surplus/ (deficit) for the year / period ended on that date; and (c) in the case of the Cash Flow Statements, where applicable, of the cash flows for the year / period ended on that date. Report on Other Legal and Regulatory Requirements 7. As required by section 55(4) of the Regulations, we report that: (a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit; and (b) In our opinion, the Balance Sheets, Revenue Accounts and Cash Flow Statements, where applicable, dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Regulations. 8. As required by clause 5 (ii)(2) of the Eleventh Schedule to the Regulations, we report that the Balance Sheets, Revenue Accounts, and Cash Flow Statements, where applicable, dealt with by this Report are in agreement with the books of account of the Schemes. 9. In our opinion, the methods used to value non-traded securities as at March 31, 2016, as determined by Mahindra Asset Management Company Limited under procedures approved by the Trustee of Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable. For Price Waterhouse Firm Registration Number: E Chartered Accountants Partha Ghosh Place: Mumbai Partner Date: June17, 2016 Membership Number:

10 INDEPENDENT AUDITORS REPORT To the Trustee of Mahindra Mutual Fund Report on the Financial Statements 1. We have audited the accompanying financial statements of Mahindra Bond Unit Scheme 99, Mahindra Banking and PSU Debt Fund, Mahindra Gilt Unit Scheme 98 Gilt Investment, Corporate Bond Fund, Low Duration Fund, Mahindra Liquid Scheme, Floater Short Term Scheme, Treasury Advantage Fund, Flexi Debt Scheme, Income Opportunities Fund, Medium Term Fund (the Schemes ), which comprise the Balance Sheets as at March 31, 2016, and the related Revenue Accounts and Cash Flow Statements, where applicable, for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report. Trustee s and Management s Responsibility for the Financial Statements 2. The Trustee of Mahindra Mutual Fund and the Management of Mahindra Asset Management Company Limited (the Management ) are responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Schemes in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto (the Regulations ). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors Responsibility 3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2016 by correspondence with the custodian/others and registrar and transfer agent, respectively. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Trustee and the Management, as well as evaluating the overall presentation of the financial statements. 5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion 6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements give the information required by the Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) (c) in the case of the Balance Sheets, of the state of affairs of the Schemes as at March 31, 2016; in the case of the Revenue Accounts, of the net surplus for the year ended on that date; and in the case of the Cash Flow Statements, where applicable, of the cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements 7. As required by section 55(4) of the Regulations, we report that: (a) (b) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit; and In our opinion, the Balance Sheets, Revenue Accounts and Cash Flow Statements, where applicable, dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Regulations. 8. As required by clause 5 (ii)(2) of the Eleventh Schedule to the Regulations, we report that the Balance Sheets, Revenue Accounts, and Cash Flow Statements, where applicable, dealt with by this Report are in agreement with the books of account of the Schemes. 9. I n our opinion, the methods used to value non-traded securities as at March 31, 2016, as determined by Mahindra Asset Management Company Limited under procedures approved by the Trustee of Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable. For Price Waterhouse Firm Registration Number: E Chartered Accountants Partha Ghosh Place: Mumbai Partner Date: June 17, 2016 Membership Number:

11 INDEPENDENT AUDITORS REPORT To the Trustee of Mahindra Mutual Fund Report on the Financial Statements 1. We have audited the accompanying financial statements of the under mentioned Schemes of Mahindra Mutual Fund (the Schemes ), which comprise the Balance Sheets as at March 31, 2016, and the related Revenue Accounts and Cash Flow Statements for the year/period mentioned below, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report. The Schemes Year/Period Quarterly Interval Plan-Series 1 April 1, 2015 to December 10, 2015 Quarterly Interval Plan-Series 2 April 1, 2015 to March 31, 2016 Quarterly Interval Plan-Series 3 April 1, 2015 to March 31, 2016 Quarterly Interval Plan-Series 4 April 1, 2015 to December 9, 2015 Quarterly Interval Plan-Series 5 April 1, 2015 to January 19, 2016 Quarterly Interval Plan-Series 6 April 1, 2015 to March 31, 2016 Quarterly Interval Plan Series 7 April 1, 2015 to March 31, 2016 Quarterly Interval Plan Series 8 April 1, 2015 to December 9, 2015 Quarterly Interval Plan Series 9 April 1, 2015 to March 31, 2016 Quarterly Interval Plan Series 10 April 1, 2015 to July 10, 2015 FMP Series 85 April 1, 2015 to April 15, 2015 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 The Schemes Year/Period FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to April 9, 2015 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days April 1, 2015 to March 31, 2016 FMP Series Days June 17, 2015 to March 31, 2016 FMP Series Days July 10, 2015 to March 31, 2016 FMP Series Days August 17, 2015 to March 31, 2016 FMP Series Days September 9, 2015 to March 31, 2016 FMP Series Days October 7, 2015 to March 31, 2016 FMP Series Days October 27, 2015 to March 31, 2016 FMP Series Days November 20, 2015 to March 31, 2016 FMP Series 183 December 17, 2015 to March 31, 2016 FMP Series 185 January 12, 2016 to March 31, 2016 FMP Series 186 January 29, 2016 to March 31, 2016 FMP Series 187 February 10, 2016 to March 31, 2016 FMP Series 189 February 12, 2016 to March 31, 2016 FMP Series 190 February 17, 2016 to March 31, 2016 FMP Series 191 March 10, 2016 to March 31, 2016 FMP Series 192 March 14, 2016 to March 31, 2016 Trustee s and Management s Responsibility for the Financial Statements 2. The Trustee of Mahindra Mutual Fund and the Management of Mahindra Asset Management Company Limited (the Management ) are responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Schemes in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto (the Regulations ). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors Responsibility 3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the preparation and fair presentation of the financial 9