Annual Report

Transcription

1 Trustee Report Annual Report

2 H E R E S O N E M O R E R E A S O N TO R E L A X. A X I S TA X S A V E R F U N D I S N O. 1 *. *Based on 1 year returns (as on 30 June 2011) under the tax planning category of valueresearchonline.com (comprising of 34 schemes) using Growth option NAVs (CAGR). Past performance is no guarantee of future results. Performance as on 30 June 2011 Past performance may or may not be sustained in future. Returns are compounded annualized for period more than or equal 1 year. Since inception returns are calculated on ` 10 invested at inception. Calculations are on Growth option NAVs. Inception date :29th December Statury Details: Axis Mutual, sponsored by Axis Bank Ltd., has been established as a Trust under the Indian Trusts Act, 1882 (liability restricted Rs. 1 Lakh). Trustee: Axis Mutual Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Facrs: All Mutual funds and securities investments are subject market risks and there is no guarantee that the investment objective of the scheme will be achieved. The NAV of the scheme can go up or down depending on facrs and forces affecting securities markets. Past performance of the Sponsor or its affiliates/the AMC/the mutual fund or its schemes does not indicate the future performance of the scheme. The sponsor is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. Investments in the scheme is subject various investment risks such as trading volumes, settlement risk, liquidity risk, default risk, risk of possible loss of principal, etc. Equity and equity related instruments are volatile by nature. Due the lock in requirements under ELSS Guidelines, the ability of invesrs realize returns under Axis Tax Saver is restricted for the first three years. For detailed risk facrs, please refer the SID. Axis Tax Saver (an open-ended equity linked savings scheme) is only the name of the Scheme and does not in any manner indicate the quality of the Scheme, its future prospects or returns. Investment objective - To generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities. Mutual Investments are subject market risks. Please read the Scheme Information Document and Statement of Additional Information (SID & SAI) carefully before investing.

3 Trustee Report REPORT FROM AXIS MUTUAL FUND TRUSTEE LIMITED TO THE UNIT HOLDERS OF THE SCHEMES OF AXIS MUTUAL FUND We have pleasure in presenting the Second report on the schemes of Axis Mutual for the period ended alongwith audited financial statements for the schemes of the Axis Mutual. The assets under management of the schemes of the Axis Mutual as at March 31, 2011 were Rs. 4, crores and the average asset under management during the said period was Rs. 7, crores. The tal number of invesrs under the schemes of Axis Mutual as at were out of which was Retail Invesrs and 2120 was Institutional Invesrs. As of, Axis Asset Management Company Limited managed 13 schemes of Axis Mutual which includes 1 open ended liquid scheme, 3 open ended debt schemes and 1 open ended equity linked savings scheme (ELSS), 1 open ended growth scheme, 1 open ended equity scheme, 1 open ended hybrid scheme, 1 open ended Gold Exchange Traded and 4 close ended debt scheme. 1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES A. Scheme Performance The Assets Under Management ( AUM ), the net asset value ( NAV ) per unit and the performance of the schemes vis-à-vis their benchmark as on are as follows: Scheme Name Inception/ Allotment Date AUM (Rs. in crores) NAV (in Rs.)* Performance (Since Inception) Performance (1 year) Scheme Returns^* Benchmark Returns@ Scheme Returns^* Benchmark Returns@ Axis Liquid Ocber 9, Retail: Institutional : Retail: 6.23% Institutional: 5.80% Retail: 6.11% Institutional: 5.25% Retail: 6.40% Institutional: 6.60% Retail: 6.21% Institutional: 6.21% Axis Treasury Advantage Ocber 9, Retail: Institutional: Retail: 6.20% Institutional: 5.94% Retail: 6.08% Institutional: 5.25% Retail: 6.35% Institutional: 6.61% Retail: 6.21% Institutional: 6.21% Axis Tax Saver December 29, % 7.45% 14.53% 8.15% Axis Equity January 5, % 8.46% 6.06% 11.14% Axis Short Term January 22, Retail: Institutional: Retail: 5.41% Institutional: 5.40% Retail: 5.33% Institutional: 5.02% Retail: 5.17% Institutional: 5.55% 5.12% Plan Series 1 (384 days) March 17, Retail: Retail : 7.32% 5.15% 7.15% 5.12% Axis income Saver July 16, % 4.09% NA NA Axis Triple Advantage August 23, % 6.75% NA NA Axis Gold ETF November 10, % 2.67% NA NA Plan Series 11 (371 days) Plan Series 12 (367 days) January 18, % 1.43% NA NA February 9, % 1.30% NA NA Axis Midcap February 18, % 3.18% NA NA Plan Series 13 (370 days) March 23, % 0.28% NA NA ^ Past performance may or may not be sustained in future. NA Not Benchmark for the above schemes CRISIL Liquid Index: Axis Liquid, Axis Treasury Advantage ; S&P CNX Nifty: Axis Equity ; BSE 200: Axis Tax Saver ; CRISIL Short Term Bond Index: Axis Short Term, Plan Series I (384 days), Plan Series 11 (371 days), Plan Series 12 (367 days), Axis Fixed Term Plan Series 13 (370 days); BSE Midcap: Axis Midcap ; CRISIL MIP Blended : Axis Income Saver; CRISIL Composite Bond Index: Axis Dynamic Bond ; 35% of S&P CNX Nifty + 35% of Crisil Composite Bond Index + 30% of INR price of gold: Axis Triple Advantage ; Domestic Price of Gold: Axis Gold ETF * Returns and NAV of Growth Option Returns for period less than one year are absolute (simple annualized in case of Axis Liquid ) and one year and above are compounded annualized. The net asset value of the Scheme s units are determined separately for units issued under the plans/options after including the respective unit capital and reserves and surplus. The net asset value disclosed above represents the computed NAV as on, and not the last declared NAV. Returns for Retail Growth Option of Axis Liquid, Axis Treasury Advantage and Axis Short Term are calculated from the date of introduction of plan i.e. March 2,

4 Trustee Report Brief Comments on Scheme performance: Axis Liquid and Axis Treasury Advantage The scheme has outperformed its benchmark during the year and since its inception. The scheme has seen the benefit of a structured process of investing in the short-term money markets during a period of tightening interest rates. This has enabled the scheme deploy funds in higher yielding instruments for much of the year under review. Axis Liquid and Axis Treasury Advantage are rated mfa1+ by ICRA. Axis Tax Saver The continues focus on building portfolio of extremely strong and sustainable businesses and this strategy has delivered results. The fund is one of the best performing funds in the ELSS category since inception. Axis Equity The has performed in line with benchmark since inception. While the 1 year performance has been lagging the benchmark due restructuring of the portfolio post November 2010 due the expected slowdown in the economy. Axis Short Term The scheme has outperformed its benchmark during the year and since its inception. The year saw a sharp rise in short-term yields as the Reserve Bank of India embarked on a policy of higher rates control high inflation rates. On defensive considerations, the scheme maintained a lower duration than the normal range of one three years. This has enabled the scheme avoid some of the impact due rising yields and thus outperform. The Scheme is rated mfaaa by ICRA. Plan - Series I (384 days), Plan Series 11 (371 days), Plan Series 12 (367 days) and Plan Series 13 (370 days) The Scheme has delivered higher returns than its benchmark since inception while at the same time adhering risk limits mentioned in the Investment Policy. In line with its investment objective, the scheme has invested in instruments maturing on or before the maturity date of the Scheme. Axis Income Saver The scheme has dual objectives of delivering returns with managing downside risk through active asset allocation. As such the scheme s asset allocation profile varies substantially relative the benchmark. During the period under review, the scheme has underperformed due the higher allocation equity markets relative the benchmark. Axis Triple Advantage The scheme has underperformed its benchmark largely during the build-out stage of portfolio construction (between September and Ocber 2010). The equity and gold components of the fund were being invested during a time when these asset classes rose sharply leading underperformance during this stage. Axis Gold ETF The scheme has performed in line with its objective of replicating the benchmark returns before expenses. Axis Midcap The has commenced operations recently and is currently building up its portfolio. B. Future Outlook and Operations of the Schemes 1. Future Outlook Equity Market Outlook Economic growth in India continues be resilient on the back of strong consumption growth. The domestic orientation of the economy has allowed it grow at 8%+ growth rates even in the backdrop of anemic global growth. With interest rates peaking out in the near term the investment cycle o should pick up in the near future. Further, cooling crude prices should also have a positive impact on the economy. Corporate earnings continue be solid and companies are firming up new capacities cater both domestic and international demand. The key risk continues be persistence of high inflation. However, with the central bank tightening, inflation will recede over the next 6-9 months. The out look for the domestic economy continues be good. Corporate earnings should see continued momentum. Hence, the equity markets look fairly attractive. Debt Market Outlook While FY was characterised by continuous increases in interest rates by the Reserve Bank of India, we expect the RBI end the period of policy tightening in the first half of the current financial year. As inflation remains well above the RBI s comfort level, it continues be the primary consideration for increases in interest rates. As the growth trend remains strong, RBI believes that the economy can absorb higher interest rates. The past rate increases have now led increases in banks lending rates of basis points during the past year. As the effect of these rate rises transmit through the economy in the coming months, growth will begin slow and we expect the rate of inflation moderate going forward. With the RBI clearly pushing for a low inflation environment and growth showing early signs of moderation, we expect bond market yields generally soften in the coming months. Overnight and short term rates would continue track policy rates higher, while we expect money market rates (6-12 months) and longer bond yields decline as economic activity softens. This is only an update on the markets in India. This update is as per the research and resultant outlook formed by Axis Mutual and/or Axis Asset Management Company Limited and must not be construed as investment/financial advise. 2. Operations of the Schemes Axis Mutual continues grow its number of invesrs and more than doubled its base of invesr accounts over 300,000. Sleep in Peace accounts wherein invesrs commit a monthly amount for periods in excess of 3 years constituted 24.8% of the tal folios. During the year online section of the website www. axismf.com was revamped provide greater ease of navigation. The AMC has further invested in Complaints management software that allows tracking and speedy resolution of invesr queries and complaints across its branches. 2. BRIEF BACKGROUND OF SPONSORS, FUND, THE TRUSTEE COMPANY AND AMC a. Axis Mutual Axis Mutual ( the Mutual ) was set up as a Trust by the Settlors, Axis Bank Limited ( Axis Bank ) on June 27, 2009 with Axis Mutual Trustee Limited ( the Trustee Company ) as a Trustee in accordance with the provisions of the Indian Trust Act, 1882 and is duly registered under the Indian Registration Act, The Trustee has entered in an Investment Management Agreement dated June 27, 2009 with Axis Asset Management Company Limited ( Axis AMC ) function as the Investment Manager for all the Schemes of the Mutual. The Mutual was registered with SEBI on September 4, 2009 vide Registration No. MF/061/09/02. b. Axis Mutual Trustee Limited The Trustee is the exclusive owner of the 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 Deed of Trust. The Trustee seeks ensure that the and the Schemes floated there under are managed by the AMC in accordance with the Deed of Trust, the Regulations, directions and guidelines issued by the SEBI, the Sck Exchanges, the Association of Mutual s in India and other regulary agencies. c. Sponsor Axis Mutual is sponsored by Axis Bank Limited ( Axis Bank ). The Sponsor is the Settlor of the Mutual Trust. The Sponsor has entrusted a sum of Rs. 1,00,000/- (Rs. One Lakh only) Axis Mutual Trustee Limited as the initial contribution wards the corpus of the Mutual. Axis Bank was the first of the new private banks have begun operations in 1994, after the Government of India allowed new private banks be established. Axis Bank has strengths in both retail and corporate banking and is committed adopting the best industry practices internationally in order achieve excellence. The Bank s shares are listed on the NSE and the BSE. The GDRs issued by the Bank are listed on the London Sck Exchange (LSE). Axis Bank has a very wide network of more than 1281 branches (including 169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 6270 ATMs (as on 31st March, 2011) providing 24 hrs a day banking convenience its cusmers. This is one of the largest ATM networks in the country. The Bank is present in all states and Union Terriries (except Lakshadweep) covering 921 centres. The ATM network of the Bank increased from 4,293 last year 6,270 as on 31 March, The tal assets of the rose 34.36% Rs. 242,713 crores (as on 31 March, 2011) with tal deposits growing Rs. 189,238 crores, a growth of 33.93%. In business and earnings grew strongly with the Bank reporting a net profit of Rs. 3, crores for the year ended 31 March, Axis Bank as on 31st March, 2011 was capitalized the extent of Rs crores with the public holding (other than promoters and GDRs) at 53.60%. The Bank is well capitalised at present with an overall Capital Adequacy Ratio (CAR) of 12.65% at the end of the year, well above the benchmark requirement of 9% stipulated by Reserve Bank of India. d. Axis Asset Management Company Limited Axis Asset Management Company Limited (AMC) is a public limited company incorporated under the Companies Act, 1956 on January 13, 2

5 Trustee Report 2009, having its Registered Office at Axis House, 1 st Floor, Bombay Dyeing Mill Compound, Pandurang Budhkar Marg, Worli, Mumbai AMC has been appointed as the Investment Manager of the Mutual by the Trustee vide Investment Management Agreement (IMA) dated June 27, 2009, and executed between the Trustee and the AMC. The AMC has obtained Certificate of Registration as Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993 vide registration no. INP with effect from January 04, 2010(valid up January 03, 2013). There is no conflict of interest between the Mutual and the PMS activity. 3. INVESTMENT OBJECTIVES OF THE SCHEMES Sr. Name of the Scheme No. 1. Axis Liquid, An Open ended Liquid Scheme 2 Axis Treasury Advantage, An Open ended Debt Scheme 3 Axis Tax Saver, An Open ended equity linked savings scheme with a lock-in period of 3 years 4 Axis Equity, An Open ended growth scheme 5 Axis Short Term, An Open ended Debt Scheme 6 Plan Series 1 (384 days), A Close ended debt scheme 7 Axis Income Saver An Open ended Income 8 Axis Triple Advantage An Open ended Hybrid 9 Axis Gold ETF An Open ended Gold Exchange Traded 10 Plan Series 11 (371 days) An Close ended Debt Scheme 11 Plan Series 12 (367 days) An Close ended Debt Scheme 12 Axis Midcap An Open ended Equity Scheme Investment Objective To provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved. To provide optimal returns and liquidity the Invesrs by investing primarily in a mix of money market and short term debt instruments which results in a portfolio having marginally higher maturity as compared a liquid fund at the same time maintaining a balance between safety and liquidity. However, there can be no assurance that the investment objective of the scheme will be achieved. To generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the scheme will be achieved. To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities including derivatives. However, there can be no assurance that the investment objective of the scheme will be achieved. To generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved. To generate returns through a portfolio of debt & money market instruments that are maturing on or before the maturity of the respective plan(s). The Scheme seeks generate regular income through investments in debt & money market instruments, along with capital appreciation through limited exposure equity and equity related instruments. It also aims manage risk through active asset allocation. The Scheme seeks generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments, fixed income instruments & gold Exchange Traded s. The investment objective of the Scheme is generate returns that are in line with the performance of gold. The Plan(s) of the Scheme will endeavour generate returns through a portfolio of debt & money market instruments that are maturing on or before the maturity of the respective plan(s). The Plan(s) of the Scheme will endeavour generate returns through a portfolio of debt & money market instruments that are maturing on or before the maturity of the respective plan(s). To achieve long term capital appreciation by investing predominantly in equity & equity related instruments of mid size companies. The focus of the fund would be invest in relatively larger companies within this category. 13 Plan Series 13 (370 days) An Close ended Debt Scheme The Plan(s) of the Scheme will endeavour generate returns through a portfolio of debt & money market instruments that are maturing on or before the maturity of the respective plan(s). 4. Significant Accounting Policies Accounting policies are in accordance with Securities Exchange Board of India (Mutual ) Regulations Unclaimed Dividends and Redemptions Summary of no. of invesrs and corresponding amount as at : Name of Scheme Unclaimed Dividends Unclaimed Redemptions Amount (Rs.) No. of Invesrs Amount (Rs.) No. of Invesrs Axis Equity Nil NA 172, Axis Tax Saver 109, Nil NA Axis Treasury Advantage Nil NA 300, Note: The Amounts of Unclaimed Dividends and Redemptions which are pending for more than 6 months are considered as unclaimed. 6. Redressal of Complaints received against Axis Mutual s during Please refer Annexure for the details on Redressal of Complaints received against Axis Mutual during the F.Y Statury Information a. The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemes of the beyond their initial contribution ( the extent contributed) of Rs. 1,00,000/- for setting up the, and such other accretions / additions 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 shall be disclosed on the website ( and shall be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder can obtain copy of the trust deed, the full Annual Report of the / AMC at a price. ACKNOWLEDGEMENTS The Trustee expresses its thanks the unitholders of the Schemes for their overwhelming response and also thanks the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the Association of Mutual s in India (AMFI) for the guidance provided by them. The Trustee also appreciates the service provided by the Registrar and Transfer Agent, Accountant, Cusdian, Bankers, Distriburs and Brokers. The guidance and services provided by the Audirs and legal advisors, sincerity and dedication of the employees of Axis AMC is also appreciated. For Axis Mutual Trustee Limited Sd/- Uday M. Chitale Direcr Place: Mumbai Date : July 04, 2011 Sd/- B. Gopalakrishnan Direcr Rating Details (Axis Liquid and Axis Treasury Advantage ) This rating is the highest -credit-quality short-term rating assigned by ICRA debt funds. Debt funds rated in this category carry the lowest credit risk in the short term and are similar that of fixed income obligations of highest-credit-quality category with maturity of up one year. This rating should however, not be construed as an indication of the performance of the Mutual scheme or of volatility in its returns. The rating should not be treated as a recommendation buy, sell or hold units issued by the Mutual. Rating Details (Axis Short Term ) Debt funds rated in this category carry the lowest credit risk, similar that associated with long term-term debt obligations rated in the highest-credit-quality category. This rating should however, not be construed as an indication of the performance of the Mutual scheme or of volatility in its returns. The rating should not be treated as a recommendation buy, sell or hold units issued by the Mutual. 3

6 ANNEXURE - Disclosure of Invesr Complaints Redressal of Complaints received against Axis Mutual during Total number of folios Complaint code Type of complaint# (a) No. of complaints pending at the beginning of the year (b) No of complaints received during the year Within 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 9-12 months I A Non receipt of Dividend on Units I B Interest on delayed payment of Dividend 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 authorized persons / distriburs / employees, etc. * Non actionable means the complaints that are incomplete / outside the scope of the mutual fund 4

7 Consolidated Audirs Report To the Trustee of AXIS MUTUAL FUND 1. We have audited the attached balance sheets of the schemes mentioned below (collectively the Schemes ) as at the dates mentioned below and also the revenue accounts and the cash flow statements, for the period mentioned below, annexed there. These financial statements are the responsibility of the management of Axis Asset Management Company Limited, the Schemes asset manager. Our responsibility is express an opinion on these financial statements based on our audit. Name of the Scheme Period covered by revenue account and cash flow statement Balance Sheet date Axis Mutual - Plan - Series 3 (3 Months) 9 June September September 2010 Axis Mutual - Plan - Series 4 (3 Months) 16 June September September We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We report that: i. We have obtained all the information and explanations, which the best of our knowledge and belief were necessary for the purposes of our audit. ii. The balance sheets, revenue accounts and cash flow statements, dealt with by this report are in agreement with the books of account. iii. In our opinion, the balance sheets and revenue accounts dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule the Securities and Exchange Board of India (Mutual s) Regulations, 1996 ( the SEBI Regulations ). iv. In our opinion, and the best of our information and according the explanations given us, the said financial statements give the information required by the SEBI Regulations as applicable, 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 the dates mentioned above; b) in the case of the revenue accounts, of the surplus for the period as mentioned above; and c) in the case of the cash flow statement, of the cash flows for the period as mentioned above. For S. R. Batliboi & Co. Firm Registration No E Chartered Accountants per Surekha Gracias Partner Membership No: Mumbai, 4 July 2011 Balance Sheet (All amounts in thousands of Rupees) Plan-Series 3 (3 Months) Plan - Series 4 (3 Months) Schedule September 8, 2010 September 15, 2010 SOURCES OF FUNDS Unit capital 2(b) & 3 786, ,389 Reserves and surplus 2(b) & 4 4,758 1 Current liabilities 5 7,806 3, , ,763 APPLICATION OF FUNDS Investments 2(c) & Other current assets 7 799, , , ,763 The accompanying schedules are an integral part of this balance sheet. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments R. Sivakumar Head-Fixed Income Mumbai Date: July 4, 2011 Ninad Deshpande Manager-Fixed Income 5

8 Revenue Account (All amounts in thousands of Rupees) Plan-Series 3 (3 Months) Plan - Series 4 (3 Months) Schedule June 9, 2010 September 8, 2010 June 16, 2010 September 15, 2010 INCOME Interest 2(d) & 8 12,639 3,343 Total 12,639 3,343 EXPENSES AND LOSSES Management fee Trusteeship fee Cusdian service charges 17 4 Registrar service charges Commission distriburs Audit fee Listing fee Other operating expenses 20 5 Less: Expenses reimbursed/ be reimbursed by (15) (80) AMC Total Surplus for the period 12,439 3,290 Income distribution on capital account (6,423) (2,695) Income-tax on distributed income (1,258) (594) Surplus transferred the balance sheet 4 4,758 1 The accompanying schedules are an integral part of this revenue account. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants per Surekha Gracias Partner Membership No Mumbai Date: July 4, 2011 For and on behalf of Axis Mutual Trustee Limited Uday M. Chitale Direcr B. Gopalakrishnan Direcr For and on behalf of Axis Asset Management Company Limited Rajiv Anand Managing Direcr & CEO Chandresh Nigam Head-Investments U.R. Bhat Direcr R. Sivakumar Head-Fixed Income Ninad Deshpande Manager-Fixed Income Cash Flow Statement (All amounts in thousands of Rupees unless specified otherwise) Plan-Series 3 (3 Months) Plan - Series 4 (3 Months) June 9, 2010 To September 8, 2010 June 16, 2010 To September 15, 2010 A. Cashflow from operating activity Net Surplus for the period 12,439 3,290 Adjustments for:- Net current assets (15) (80) Net current liabilities Net cash used in operations ( A ) 12,549 3,294 B Cashflow from financing activity Increase in unit capital 786, ,389 Dividend paid (including tax thereon) - - Net cash generated from financing activities ( B ) 786, ,389 Net Increase/(Decrease) in Cash and Cash Equivalents (A+B) 799, ,683 Cash and Cash Equivalents as at the close of the period 799, ,683 Component of cash and cash equivalents September 8, 2010 September 15, 2010 Balances with banks in current accounts 4 13 Collateralised lending 799, ,670 As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments R. Sivakumar Head-Fixed Income Ninad Deshpande Manager-Fixed Income Mumbai Date: July 4,

9 Schedules SCHEDULES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2011 (All amounts in thousands of Rupees unless specified otherwise) 1. BACKGROUND Axis Bank Limited is the sponsor of Axis Mutual ( The ). In accordance with the Securities and Exchange Board of India ( SEBI ) (Mutual s) Regulations, 1996 ( the SEBI Regulations ), the Board of Direcrs of Axis Mutual Trustee Limited ( the Trustee ) has appointed Axis Asset Managenent Company Limited ( the AMC ) manage the s affairs and operate its Schemes. The key features of the schemes of Axis Mutual are as below: The key features of the schemes of Axis Mutual are as below: Scheme Name Type of Scheme Investment objective of the Scheme NFO Open NFO Close Plans Plan-Series 3 (3 Months) Close ended debt scheme The Scheme endeavours generate returns through a portfolio of debt and money market instruments that are maturing on or before the maturity of the respective plan(s). Plan - Series 4 (3 Months) Close ended debt scheme The Scheme endeavours generate returns through a portfolio of debt and money market instruments that are maturing on or before the maturity of the respective plan(s). June 8,2010 June 8, 2010 June 8, 2010 June 15, 2010 Growth Dividend Growth Dividend Plan-Series 3 (3 Months) and Plan - Series 4(3 Months) matured on September 8, 2010 and September 15, 2010 respectively. The financial statements are as on the maturity date. Presentation of these separate Balance sheets and Revenue accounts in a columnar form is not intended indicate that they bear any relation each other, or are interdependent or comparable in any way. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are prepared on the accrual basis of accounting, under the hisrical cost convention, as modified for investments, which are marked-market. The significant accounting policies, which are in accordance with the SEBI Regulations and have been approved by the Boards of Direcrs of the AMC and the Trustee, are stated below. (a) Determination of net asset value ( NAV ) The net asset value of the units are determined separately for the units issued under the Plans. For reporting the net asset value within the portfolio, the Scheme s daily income earned, including realised profit or loss and unrealised gain or loss in the value of investments, and expenses incurred, are allocated the related plans in proportion their respective daily net assets arrived at by multiplying day-end outstanding units by previous day s closing NAV. (b) Unit capital Unit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactions relating the period ended on that date. Upon issue and redemption of units, the net premium or discount the face value of units is adjusted against the unit premium reserve of each Plan. (c) Investments Accounting for investment Purchase and sale of investments are recorded on the date of transaction at cost and sale price respectively, after considering all transaction costs like brokerage, commission, charges paid Clearing Corporation of India Limited and fees payable, if any. Valuation of investments Investments in fixed income securities (other than government securities) are valued as follows: Prior July 30, 2010, all quoted debt investments (other than thinly traded), were valued at the closing traded price as at the valuation date. Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all quoted debt investments (other than thinly traded) are valued at the weighted average traded price as at the valuation date. (d) (e) Prior July 30, 2010, all money market instruments, floating rate bonds and debt securities (having maturity up 182 days) not traded, were valued at amortised cost based on purchase price or last traded price, which includes discount / premium accrued on a straight line basis over the period maturity. Prior July 30, 2010, all money market instruments, floating rate bonds and debt securities (having maturity more than 182 days) not traded, were stated at their fair value as determined by the AMC in accordance with the SEBI Regulations and related circulars, based on the average of the comparative yields released by CRISIL and ICRA, as suggested by the Association of Mutual s in India ( AMFI ). Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all non-traded / thinly traded money market securities, floating rate bonds and debt securities having maturity up 91 days are valued at amortised cost based on purchase price or last traded price, which includes discount / premium accrued on a straight line basis over the period maturity. Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all non-traded / thinly traded money market securities, floating rate securities and debt securities over 91 days maturity are valued using the average of the yields released by CRISIL and ICRA, as suggested by AMFI. Accounting policy for valuation of debt and money market securities has been changed with effect from July 30, 2010, as prescribed by SEBI vide circular dated February 2, 2010 and circular dated June 21, Impact of this change in accounting policy is not ascertainable. Revenue recognition Interest income is recognised on an accrual basis. Profit or loss on sale/redemption of investments is determined on the basis of the weighted average cost method. Cash and cash equivalent Cash and cash equivalents include balances with banks in current accounts, deposits placed with scheduled banks (with an original maturity of up three months) and collateralised lending (including reverse repurchase transactions). 7

10 Schedules Plan-Series 3 (3 Months) Plan - Series 4 (3 Months) September 8, 2010 Face Value Rs. 10 September 15, 2010 Face Value Rs. 10 Quantity Amount Quantity Amount 3. Unit Capital Growth Issued during new fund offer 30,093, ,938 14, Outstanding, end of period 30,093, ,938 14, Dividend Issued during new fund offer 48,581, ,812 20,224, ,244 Outstanding, end of period 48,581, ,812 20,224, ,244 Total Issued during new fund offer 78,674, ,750 20,238, ,389 Outstanding, end of period 78,674, ,750 20,238, ,389 Plan- Series 3 (3 Months) Plan - Series 4 (3 Months) September 8, 2010 September 15, RESERVES AND SURPLUS Retained surplus Surplus transferred from revenue account 4,758 1 Balance, end of period 4,758 1 Total reserves 4,758 1 The share of the plans in reserves and surplus is as follows: Growth 4,758 1 Dividend # - # - 4,758 1 # Amount less than Rs. 0.5 thousand 5. CURRENT LIABILITIES Dividend payable on units 6,423 2,695 Dividend distribution tax payable 1, Commission distriburs payable 29 7 Other current liabilities ,806 3, INVESTMENTS - - (i) All the investments are held in the name of the Scheme, as per clause 7 of the Seventh Schedule under Regulation 44(1) of SEBI (Mutual s) Regulations, (ii) (iii) The aggregate value of investments acquired and sold/redeemed during the period and these amounts as a percentage of average daily net assets are as follows: Plan- Series 3 (3 Months) June 9, 2010 September 8, 2010 Plan - Series 4 (3 Months) June 16, 2010 September 15, 2010 Purchases (excluding collateralised lending, fixed deposits, futures and options) - amount 1,363, ,541 - as a percentage of average daily net assets % % Sales (excluding collateralised lending, fixed deposits, futures and options) - amount 1,375, ,801 - as a percentage of average daily net assets % % The aggregate purchases made by the Scheme during the current and previous period and the fair value of such investments as at in companies which have invested in any scheme of the in excess of five per cent of that scheme s net assets are provided in Attachment I. 8

11 Plan- Series 3 (3 Months) Plan - Series 4 (3 Months) September 08, 2010 September 15, OTHER CURRENT ASSETS Balances with banks in current accounts 4 13 Amount due from AMC Collateralised lending 799, , , ,763 June 9, 2010 September 8, 2010 June 16, 2010 September 15, INTEREST Money market instruments 12,143 3,259 Debentures and bonds Collateralised lending ,639 3, MANAGEMENT AND TRUSTEESHIP FEE The Schemes pay fees for investment management services (excluding service tax) under an agreement with the AMC, which provides for computation of such fee as a percentage of Scheme s average daily net assets, after excluding the net asset value of the investments by the AMC in the Scheme, the net asset value of the investments made in other schemes and fixed deposits as applicable. During the period, the Schemes have paid management fee at annualised average rate as follows: Plan- Series 3 (3 Months) Schedules Plan - Series 4 (3 Months) Management fee at annualised average rate 0.01% 0.01% The Schemes pay fees for Trusteeship services under an agreement with the Trustee, aggregating Rs. 100,000 per month (excluding service tax),subject the ceiling of 0.10% per annum, which is apportioned all the Schemes on the basis of their monthly average net assets. 10. INCOME AND EXPENDITURE The tal income and expenditure and these amounts as a percentage of the scheme s average daily net assets on an annualised basis are provided below: Plan- Series 3 (3 Months) Plan - Series 4 (3 Months) June 9, 2010 September 8, 2010 June 16, 2010 September 15, 2010 Income - amount 12,639 3,343 - as a percentage of average daily net assets 6.32% 6.50% Expenditure (excluding provision for net unrealised loss and realised loss on sale of investments) - amount as a percentage of average daily net assets 0.10% 0.10% 11. RELATED PARTY TRANSACTIONS (i) Plan-Series 3 (3 Months), Plan - Series 4(3 Months) has entered in transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on Related Party Disclosures issued by the Institute Of Chartered Accountants Of India is provided below; (a) Related party relationships Name Description of relationship Axis Bank Limited Sponsor of the Axis Mutual Trustee Limited Trustee of the Axis Asset Management Company Limited The Scheme s asset manager Schemes of the, under common control of the Sponsor Axis Equity Axis Tax Saver Axis Liquid Axis Treasury Advantage Axis Short Term Plan - Series 1 (384 days) Plan-Series 3 (3 Months) Plan-Series 4 (3 Months) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Triple Advantage Axis Income Saver Axis Midcap Axis Gold ETF (b) Interescheme transactions covered by Accounting Standard-18 are provided in Attachement 2. 9

12 Schedules (c) Transactions other than interscheme transactions covered by Accounting Standard-18: (ii) Plan-Series 3 (3 Months) Name of Related Party Nature of transactions Period ended September 08, 2010 Plan-Series 3 (3 Months) Balance as at September 08, 2010 Plan - Series 4 (3 Months) Period ended September 15, 2010 Plan - Series 4 (3 Months) Balance as at September 15, 2010 Axis Mutual Trustee Limited Fees for trusteeship services # - Axis Asset Management Company Fees for investment Limited management services Axis Asset Management Company Receivable for other expenses Limited Axis Bank Limited Bank charges 2 # - # - # - Axis Bank Limited Commission paid on # - - # - - distribution of units # Amount less than Rs. 0.5 thousand Transactions covered by Regulation 25(8) of the SEBI Regulation with the sponsor or associate of the sponsor: Plan- Series 3 (3 Months) Plan - Series 4 (3 Months) Period ended September 08, 2010 Period ended September 15, 2010 Axis Bank Limited Bank charges 2 # - Commission paid on distribution of units # - # - # Amount less than Rs. 0.5 thousand 12. Investments made during the period in the sponsor company and its group companies at cost is NIL. 13. NET ASSET VALUE Rupees Plans Plan- Series 3 (3 Months) Plan - Series 4 (3 Months) September 8, 2010 September 15, 2010 Face Value Rs. 10 Face Value Rs. 10 Growth Option Dividend Option The net asset value of the Scheme s units are determined separately for units issued under the plans/options after including the respective unit capital and reserves and surplus. The net asset value disclosed above represents the computed NAV as on the balance sheet date and not the last declared NAV. 14. CONTINGENT LIABILITY Contingent liabilities as date of balance sheet : NIL 15. SEGMENT REPORTING Plan-Series 3 (3 Months) and Plan - Series 4 (3 Months) operate in one segment only viz. primarily generate attractive returns from a diverse and actively managed portfoilio of debt and money market instruments. 16. PRIOR PERIOD COMPARATIVES As these are the first financial statements of the Schemes since the date of launch, there are no prior period comparatives. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments R. Sivakumar Head-Fixed Income Ninad Deshpande Manager-Fixed Income Mumbai Date: July 4,

13 Interescheme transactions covered by Accounting Standard-18 Plan-Series 3 (3 Months) Attachment 2 Name of Related Party Nature of transactions Period ended Balance as at Axis Liquid Purchase of investments 159,771 - Sale of investments - - Axis Treasury Advantage Purchase of investments 355,755 - Sale of investments 60,375 - Plan-Series 4 (3 MONTHS) Name of Related Party Nature of transactions Period ended Balance as at Axis Liquid Purchase of investments 40,548 - Axis Liquid Sale of investments 48,781 - Axis Treasury Advantage Purchase of investments 211,444 - Axis Treasury Advantage Sale of investments 80,470 - To the Trustee of AXIS MUTUAL FUND 1. We have audited the attached balance sheets of the schemes mentioned below (collectively the Schemes ) as at 31 March 2011 and also the revenue accounts and cash flow statements, where applicable, for the period as mentioned below, annexed there. These financial statements are the responsibility of the management of Axis Asset Management Company Limited, the Schemes asset manager. Our responsibility is express an opinion on these financial statements based on our audit. Name of the Scheme Axis Mutual - Axis Liquid Axis Mutual Axis Treasury Advantage Axis Mutual Axis Short Term Axis Mutual Axis Income Saver Period covered by revenue account and Name of the Scheme cash flow statement, where applicable 1 April March 2011 Axis Mutual Axis Fixed Term Plan Series 1 (384 days) 1 April March 2011 Axis Mutual Axis Fixed Term Plan Series 11 (371 days) 1 April March 2011 Axis Mutual Axis Fixed Term Plan Series 12 (367 days) 16 July March 2011 Axis Mutual Axis Fixed Term Plan Series 13 (370 days) Period covered by revenue account and cash flow statement, where applicable 1 April March January March February March March March We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We report that: i. We have obtained all the information and explanations, which the best of our knowledge and belief were necessary for the purposes of our audit. ii. The balance sheets, revenue accounts and cash flow statements, where applicable, dealt with by this report are in agreement with the books of account. iii. In our opinion, the balance sheets and revenue accounts dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule the Securities and Exchange Board of India (Mutual s) Regulations, 1996 ( the SEBI Regulations ). iv. In our opinion, and on the basis of information and explanations given us, the methods used value non traded securities, as at 31 March 2011 are in accordance with the SEBI Regulations and other guidelines issued by the Securities and Exchange Board of India as applicable and approved by the Board of Direcrs of Axis Mutual Trustee Limited, and are fair and reasonable. v. In our opinion, and the best of our information and according the explanations given us, the said financial statements give the information required by the SEBI Regulations as applicable, 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 31 March 2011; b) in the case of the revenue accounts, of the surplus for the period as mentioned above; and c) in the case of the cash flow statements, where applicable, of the cash flows for the period as mentioned above. For S. R. Batliboi & Co. Firm Registration No E Chartered Accountants Consolidated Audirs Report per Surekha Gracias Partner Membership No: Mumbai, 4 July

14 Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Axis Fixed Term Plan - Series 1 (384 Days) Axis Fixed Term Plan - Series 1 (384 Days) Axis Fixed Term Plan- Series 11 (371 Days) (All amounts in thousands of Rupees) Axis Fixed Term Plan - Series 12 (367 days ) Axis Fixed Term Plan - Series 13 (370 days ) Axis Income Saver Schedule March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 SOURCES OF FUNDS Unit capital 2(b) & 3 13,002,389 3,378,818 5,031,330 10,839,337 2,420,032 1,406, , , , ,482 2,728,685 4,255,013 Reserves and surplus 2(b) & 4 1,037,820 45,536 78,235 80,111 42,013 7,247 64,426 3,897 7,871 1,866 21, ,202 Current liabilities 5 16, ,420 64,001 11,845 3,754 1, ,242 14,056,990 3,785,774 5,173,566 10,931,293 2,465,799 1,415, , , , ,405 2,750,560 4,409,457 APPLICATION OF FUNDS Investments 2(c), 6 & 19 13,988,129 3,458,457 4,565,575 10,503,037 2,457,437 1,375, , , , ,217 2,750,393 4,231,263 Deposits , ,000 Other current assets 8 68, , , ,256 8,362 39,411 6, ,194 14,056,990 3,785,774 5,173,566 10,931,293 2,465,799 1,415, , , , ,405 2,750,560 4,409,457 The accompanying schedules are an integral part of this balance sheet. As per our report of even date. Balance Sheet For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Mumbai Date: July 4, 2011 Chandresh Nigam Head-Investments R. Sivakumar Head-Fixed Income Ninad Deshpande Manager-Fixed Income Axis Liquid Axis Liquid Axis Treasury Advantage Schedule April 1, 2010 Ocber 09, 2009 March 31, 2010 April 1, 2010 Axis Treasury Advantage Ocber 09, 2009 March 31, 2010 Axis Short Term April 1, 2010 Axis Short Term January 22, 2010 March 31, 2010 Plan - Series 1 (384 Days) April 1, 2010 Plan - Series 1 (384 Days) March 17, 2010 March 31, 2010 Plan-Series 11 (371 Days) January 18, 2011 Revenue Account (All amounts in thousands of Rupees) Axis Income Plan - Series 13 Saver (370 days ) Plan - Series 12 (367 days ) February 9, 2011 March 23, 2011 July 16, 2010 INCOME Dividend 2(d) ,044 Interest 2(d) & 9 1,642,980 53, , , ,304 28,201 66,633 3,973 8,702 1,565 5, ,071 Profit on sale/redemption of investments (inculding 2(d) 7,956-4, ,068 F&O), net Profit on inter-scheme transfer/sale of investments, net 2(d) Other Income Total 1,651,418 53, , , ,542 28,201 66,633 3,973 8,702 1,565 5, ,183 EXPENSES AND LOSSES Provision for net unrealised loss in 2(c) & 6(ii) (38) ,103 value of investments Loss on sale/redemption of investments, net 2(d) - 1,765-13,969 22,460 8, Loss on inter-scheme transfer/sale of investments, net 2(d) - 1,331 2,561 7,526 3, ,210 Management fee 10 44,214 1,294 20,228 11,340 9,806 1,594 1, ,044 Trusteeship fee , # Cusdian service charges 3, ,011 1, Registrar service charges 6, ,927 3,411 1, ,635 Commission distriburs 11, ,684 9,674 7,560 1, ,261 Audit fee Marketing expenses ,362 Listing fee Other operating expenses 7, ,745 1,434 1, # ,361 Less: Expenses reimbursed/ be reimbursed by AMC (667) (408) (24) (1,925) (553) (32) (66) (24) (78) (164) (152) (328) Total 73,600 5,875 46,916 48,643 46,330 11,807 1, , ,526 Surplus for the year/period 1,577,818 47, , , ,212 16,394 64,690 3,897 7,510 1,541 5, ,657 Equalisation (debit) / credit 2(e) (314,971) 13,473 (263,982) (185,869) (45,839) (4,699) (3,145) Income distribution on capital account (212,957) (12,332) (368,990) (140,835) (76,436) (3,649) (3,436) - (31) (3) - (32,382) Income-tax on distributed income (58,950) (3,493) (75,955) (31,027) (14,300) (800) (725) - (4) # - - (4,905) Surplus transferred the balance sheet 4 990,940 45,536 (1,795) 80,111 32,637 7,246 60,529 3,897 7,475 1,538 5,720 99,225 The accompanying schedules are an integral part of this revenue account. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Mumbai Date: July 4, 2011 Chandresh Nigam Head-Investments R. Sivakumar Head-Fixed Income Ninad Deshpande Manager-Fixed Income 12

15 Plan - Series 1 (384 Days) April 1, 2010 Plan - Series 1 (384 Days) March 17, 2010 March 31, 2010 Plan-Series 11 (371 Days) January 18, 2011 (All amounts in thousands of Rupees) Plan - Series 12 Plan - Series 13 (367 days ) (370 days ) February 9, 2011 March 23, 2011 A. Cashflow from operating activity Net Surplus for the year/period 64,690 3,897 7,510 1,541 5,720 Adjustments for:- Provision for unrealised loss in value of investments Increase in investments at cost (54,761) (906,055) (434,421) (113,889) (2,734,325) Increase in other current assets (5,842) (359) (78) (164) (152) Increase in current liabilities Net cash used in operations (A) 4,271 (902,428) (426,422) (112,455) (2,728,670) Cashflow from Financing Activities Increase in unit capital - 902, , ,482 2,728,685 Dividend paid (including tax thereon) (3,943) - (31) (3) - Net cash generated from financing activities (B) (3,943) 902, , ,479 2,728,685 Net Increase/(Decrease) in Cash and Cash Equivalents (A+B) Cash and Cash Equivalents as at the beginning of the year 53 - Cash and Cash Equivalents as at the close of the period Component of cash and cash equivalents March 31, 2010 Balances with banks in current accounts Collateralised lending As per our report of even date. B Cash Flow Statement For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Mumbai Date: July 4, 2011 Chandresh Nigam Head-Investments R. Sivakumar Head-Fixed Income Ninad Deshpande Manager-Fixed Income SCHEDULES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2011 (All amounts in thousands of Rupees unless specified otherwise) Schedules 1. BACKGROUND Axis Bank Limited is the sponsor of Axis Mutual ( The ). In accordance with the Securities and Exchange Board of India ( SEBI ) (Mutual s) Regulations, 1996 ( the SEBI Regulations ), the Board of Direcrs of Axis Mutual Trustee Limited ( the Trustee ) has appointed Axis Asset Managenent Company Limited ( the AMC ) manage the s affairs and operate its Schemes. The key features of the schemes of Axis Mutual are as below: Scheme Name Type of Scheme Investment objective of the Scheme NFO Open Plans / options NFO Close Axis Liquid Open ended liquid scheme To provide a high level of liquidity with reasonable returns commensurate with low risk through a portfolio of money market and debt securities. Ocber 8, 2009 Ocber 8, 2009 Retail Growth Retail Daily Dividend Retail Weekly Dividend Retail Monthly Dividend Institutional Growth Institutional Daily Dividend Institutional Weekly Dividend Institutional Monthly Dividend Axis Treasury Advantage Open ended debt scheme To provide optimal returns and liquidity the invesrs by investing primarily in a mix of money market and short term debt instruments which results in a portfolio having marginally higher maturity as compared a liquid fund at the same time maintaining a balance between safety and liquidity. Axis Short Term Open ended debt scheme To generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. Plan - Series 1 (384 Days) Plan- Series 11 (371 Days) Close ended debt scheme Close ended debt scheme To generate returns through a portfolio of debt and money market instruments that are maturing on or before the maturity of the respective plan(s). To generate returns through a portfolio of debt and money market instruments that are maturing on or before the maturity of the respective plan(s). Ocber 8, 2009 Ocber 8, 2009 January 19, 2010 January 20, 2010 February 25, 2010 March 8, 2010 January 3, 2011 January 12, 2011 Retail Growth Retail Daily Dividend Retail Weekly Dividend Retail Monthly Dividend Institutional Growth Institutional Daily Dividend Institutional Weekly Dividend Institutional Monthly Dividend Retail Growth Retail Regular Dividend Retail Monthly Dividend Institutional Growth Institutional Regular Dividend Institutional Monthly Dividend Retail Growth Retail Dividend Retail Quarterly Dividend Institutional Growth Institutional Dividend Institutional Quarterly Dividend Growth Dividend Quarterly Dividend 13

16 Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver Close ended debt scheme To generate returns through a portfolio of debt and money market instruments that are maturing on or before the maturity of the respective plan(s). Close ended debt scheme To generate returns through a portfolio of debt and money market instruments that are maturing on or before the maturity of the respective plan(s). Open ended income scheme To generate regular income through investments in debt and money market instruments, along with capital appreciation through limited exposure equity and equity related instruments. The Scheme also aims manage risk through active asset allocation. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are prepared on the accrual basis of accounting, under the hisrical cost convention, as modified for investments, which are marked-market. The significant accounting policies, which are in accordance with the SEBI Regulations and have been approved by the Boards of Direcrs of the AMC and the Trustee, are stated below. (a) Determination of net asset value ( NAV ) The net asset value of the units are determined separately for the units issued under the Plans and Options. For reporting the net asset value within the portfolio, the Scheme s daily income earned, including realised profit or loss and unrealised gain or loss in the value of investments, and expenses incurred, are allocated the related plans/options in proportion their respective daily net assets arrived at by multiplying day-end outstanding units by previous day s closing NAV. (b) Unit capital Unit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactions relating the period ended on that date. Upon issue and redemption of units, the net premium or discount the face value of units is adjusted against the unit premium reserve of each Plan / Option. (c) Investments Accounting for investment Purchase and sale of investments are recorded on the date of transaction at cost and sale price respectively, after considering all transaction costs like brokerage, commission, charges paid Clearing Corporation of India Limited and fees payable, if any. Right entitlements are recognised as investments on the ex-rights date. Bonus entitlements are recognised as investments on the ex-bonus date. Valuation of investments Investments in equity shares / warrants / equity futures / equity options which have traded during a period of thirty days (prior the balance sheet date) are stated at the closing prices on the balance sheet date or the last trading day before the balance sheet date, as may be applicable, on The National Sck Exchange of India Limited (principal sck exchange). When on a particular valuation day, a security has not been traded on the principal sck exchange, the value at which it is traded on The Bombay Sck Exchange Limited is used. Non traded and thinly traded equity shares / warrants / equity futures / equity options, including those not traded within thirty days prior the balance sheet date are valued at the fair value as determined by the AMC under procedures approved by the Trustee of Axis Mutual in accordance with the SEBI Regulations. Prior September 1, 2010, government securities were valued at the prices released by an agency (CRISIL), as suggested by the Association of Mutual s in India ( AMFI ). Pursuant the AMFI notification dated June 8, 2010, with effect from, September 1, 2010, government securities are valued at the average of the prices released by CRISIL and ICRA, as suggested by AMFI, on the basis of the valuation principles laid down by SEBI. Investments in fixed income securities (other than government securities) are valued as follows: Collateralised lending Prior July 30, 2010, all quoted debt investments (other than thinly traded), were valued at the closing traded price as at the valuation date. Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all quoted debt investments (other than thinly traded) are valued at the weighted average traded price as at the valuation date. Prior July 30, 2010, all money market instruments, floating rate bonds 3. Unit Capital ** Details of large holdings (over 25% of the Net Assets of the Scheme): (d) (e) (f) (g) February 3, 2011 February 8, 2011 March 14, 2011 March 22, 2011 May 24, 2010 June 21, 2010 Growth Dividend Quarterly Dividend Growth Dividend Quarterly Dividend Growth Quarterly Dividend Half Yearly Dividend Annual Dividend Schedules Presentation of these separate Balance sheets and Revenue accounts in a columnar form is not intended indicate that they bear any relation each other, or are interdependent or comparable in any way. and debt securities (having maturity up 182 days) not traded, were valued at amortised cost based on purchase price or last traded price, which includes discount / premium accrued on a straight line basis over the period maturity. Prior July 30, 2010, all money market instruments, floating rate bonds and debt securities (having maturity more than 182 days) not traded, were stated at their fair value as determined by the AMC in accordance with the SEBI Regulations and related circulars, based on the average of the comparative yields released by CRISIL and ICRA, as suggested by the Association of Mutual s in India ( AMFI ). Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all non-traded / thinly traded money market securities, floating rate bonds and debt securities having maturity up 91 days are valued at amortised cost based on purchase price or last traded price, which includes discount / premium accrued on a straight line basis over the period maturity. Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all non-traded / thinly traded money market securities, floating rate securities and debt securities over 91 days maturity are valued using the average of the yields released by CRISIL and ICRA, as suggested by AMFI. Accounting policy for valuation of debt and money market securities has been changed with effect from July 30, 2010, as prescribed by SEBI vide circular dated February 2, 2010 and circular dated June 21, Impact of this change in accounting policy is not ascertainable. The net unrealized appreciation / depreciation in the value of investments is determined separately for each category of investments. The change in net unrealized loss, if any, between two balance sheet dates is recognized in the revenue account and net unrealized gain, if any, is adjusted in the unrealized appreciation reserve. Revenue recognition Dividend income is recognised on the ex-dividend date. Interest income is recognised on an accrual basis. Profit or loss on sale/redemption of investments is determined on the basis of the weighted average cost method. Equalisation account In case of open ended schemes, when units are issued or redeemed, the distributable surplus (excluding unit premium reserve, but including balance of distributable surplus at the beginning of the year) as on the date of the transaction is determined. Based on the number of units outstanding on the transaction date, the distributable surplus (excluding unit premium reserve, but including balance of distributable surplus at the beginning of the year) associated with each unit is computed. The per unit amount so determined is credited / debited the equalisation account on issue / redemption of each unit respectively. The balance in equalisation account is transferred revenue account at the year-end without affecting the net income of the Scheme. Load In accordance with SEBI circular no. SEBI/IMD/CIR No. 4/ /09 dated June 30, 2009 with effect from August 1, 2009 exit load collected in excess of 1% of the redemption proceeds is credited the scheme as income. Load other than the above is utilized pay commission distriburs and other marketing and selling expenses in accordance with SEBI guidelines. Any surplus is treated as income as and when considered appropriate. Cash and cash equivalent Cash and cash equivalents include balances with banks in current accounts, deposits placed with scheduled banks (with an original maturity of up three months) and collateralised lending (including reverse repurchase transactions). Scheme Name March 31, 2010 No. of Invesrs Holding as % Net Assets No. of Invesrs Holding as % Net Assets Axis Liquid - Institutional Growth % - - Axis Treasury Advantage - Institutional Daily Dividend % 14

17 Schedules 3. Unit Capital Axis Liquid ** Axis Liquid Axis Treasury Advantage Axis Treasury Advantage ** Axis Short Term Axis Short Term March 31, 2010 March 31, 2010 March 31, 2010 Face Value Rs Face Value Rs Face Value Rs Face Value Rs Face Value Rs. 10 Face Value Rs. 10 Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Retail Growth Outstanding, beginning of year/period 14, , , , , , Issued -new fund offer during the year/period 1,028, ,028,358 92, ,515 1,424, ,424,461 56, ,366 24,246, , , ,464 Redeemed during the year/period 968, ,422 78, ,115 1,246, ,246,190 16, ,344 17,096, , Outstanding, end of year/period 74, ,336 14, , , ,293 40, ,022 7,895, , , ,460 Retail Dividend Outstanding, beginning of year/period 2,083, , Issued -new fund offer - - 2,083, ,832 Outstanding, end of year/period 2,083, ,832 2,083, ,832 Retail Regular Dividend Outstanding, beginning of year/period 874, , Issued -during the year/period 70,204, , , ,748 Redeemed during the year/period 45,938, , Outstanding, end of year/period 25,140, , , ,748 Retail Daily Dividend Outstanding, beginning of year/period 8, , , , Issued -during the year/period 1,223, ,223,942 52, ,969 2,797, ,797, , ,408 Redeemed during the year/period 1,104, ,104,498 44, ,740 2,369, ,369,083 52, ,154 Outstanding, end of year/period 127, ,673 8, , , ,081 89, ,254 Retail Weekly Dividend Outstanding, beginning of year/period , , Issued -during the year/period 67, ,698 1, , , ,299 3, ,572 Redeemed during the year/period 47, ,532 1, , , , Outstanding, end of year/period 20, , , ,179 3, ,565 Retail Monthly Dividend Outstanding, beginning of year/period ,375, , Issued -during the year/period 28, , , ,471 1, ,255 27,570, ,703 1,375, ,757 Redeemed during the year/period 3, , , , ,503, , Outstanding, end of year/period 24, , , , ,442, ,422 1,375, ,757 Retail Quarterly Dividend Outstanding, beginning of year/period Issued -new fund offer Outstanding, end of year/period 15

18 Schedules 3. Unit Capital Axis Liquid ** Axis Liquid Axis Treasury Advantage Axis Treasury Advantage ** Axis Short Term Axis Short Term March 31, 2010 March 31, 2010 March 31, 2010 Face Value Rs Face Value Rs Face Value Rs Face Value Rs Face Value Rs. 10 Face Value Rs. 10 Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Institutional Growth Outstanding, beginning of year/period 2,348, ,348, ,726, ,726, ,581, , Issued -new fund offer - - 4,349, ,349, ,146, ,146, ,463, ,224,631 -during the year/period 694,972, ,972,878 92,656, ,656,541 68,445, ,445,249 81,259, ,259, ,103, ,211,036 12,106, ,067 Redeemed during the year/period 685,408, ,408,443 94,657, ,657,955 71,462, ,462,653 86,678, ,678, ,845, ,288, ,988, ,769,881 Outstanding, end of year/period 11,912, ,912,931 2,348, ,348, , ,351 3,726, ,726,755 49,839, ,400 57,581, ,817 Institutional Regular Dividend Outstanding, beginning of year/period 28,696, , Issued -during the year 462,262, ,622,624 28,696, ,969 Redeemed during the year/period 376,384, ,763, Outstanding, end of year/period 114,575, ,145,752 28,696, ,969 Institutional Daily Dividend Outstanding, beginning of year/period 1,005, ,005, ,940, ,940, Issued -new fund offer , , ,205, ,205,911 -during the year 204,261, ,261,246 64,789, ,789,870 53,557, ,557,913 30,667, ,667,707 Redeemed during the year/period 204,445, ,445,898 64,727, ,727,640 56,214, ,214,995 27,932, ,932,790 Outstanding, end of year/period 820, ,436 1,005, ,005,088 3,283, ,283,746 5,940, ,940,828 Institutional Weekly Dividend Outstanding, beginning of year/period ,027, ,027, Issued -new fund offer , ,910 -during the year 211, ,811 12, ,554 2,495, ,495,952 1,420, ,420,950 Redeemed during the year/period 201, ,674 12, ,370 3,420, ,420, , ,315 Outstanding, end of year/period 10, , , ,666 1,027, ,027,545 Institutional Monthly Dividend Outstanding, beginning of year/period 2, , , , ,389, , Issued -new fund offer , , ,972, ,723 -during the year/period 10, ,089 2, ,222 47, ,798 35, ,315 46,084, ,847 4,940, ,409 Redeemed during the year/period , ,171 38, ,066 66,364, ,643 17,523, ,238 Outstanding, end of year/period 12, ,094 2, ,096 5, ,157 10, ,530 31,109, ,098 51,389, ,894 Total Outstanding, beginning of year/period 3,378, ,378,818 10,839, ,839, ,664, ,406,645 90,248, ,481 Issued -new fund offer - - 5,292, ,292, ,442, ,442, ,435, ,864,354 -during the year/period 901,804, ,804, ,608, ,608, ,242, ,242, ,586, ,586, ,471, ,514,717 48,741, ,414 Redeemed during the year/period 892,180, ,180, ,522, ,522, ,050, ,050, ,188, ,188, ,133, ,501, ,512, ,945,123 Outstanding, end of year/period 13,002, ,002,389 3,378, ,378,818 5,031, ,031,330 10,839, ,839, ,002, ,420, ,664, ,406,645 16

19 Schedules 3. Unit Capital Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver March 31, 2010 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Growth Issued -new fund offer 39,078, ,785 10,824, , ,441, ,664, ,336, ,703,365 -during the year/period ,754, ,542 Redeemed during the year/period ,411, ,114 Outstanding, end of year/period 39,078, ,785 10,824, , ,441, ,664, ,679, ,306,793 Dividend Issued -new fund offer 3,135, , , , , ,587 -during the year/period Redeemed during the year/period Outstanding, end of year/period 3,135, , , , , ,587 Quarterly Dividend Issued -new fund offer 440, ,401 55, ,468, , ,381, ,623,817 -during the year/period ,304, ,047 Redeemed during the year/period ,540, ,402 Outstanding, end of year/period 440, ,401 55, ,468, , ,146, ,801,462 Half Yearly Dividend Issued -new fund offer 7,555, ,556 -during the year/period 1,716, ,166 Redeemed during the year/period 1,251, ,510 Outstanding, end of year/period 8,021, ,212 Annual Dividend Issued -new fund offer 5,997, ,975 -during the year/period 1,684, ,847 Redeemed during the year/period 1,027, ,276 Outstanding, end of year/period 6,654, ,546 Retail Growth Outstanding, beginning of year/period 82,220, , Issued -new fund offer ,220, ,203 -during the year/period Redeemed during the year/period Outstanding, end of year/period 82,220, ,203 82,220, ,203 Retail Quarterly Dividend Outstanding, beginning of year/period 5,944, , Issued -new fund offer - - 5,944, ,446 Outstanding, end of year/period 5,944, ,446 5,944, ,446 Total Outstanding, beginning of year/period Issued -new fund offer ,248, ,481 42,654, ,541 11,248, , ,868, ,728, ,271, ,462,713 -during the year/period ,460, ,354,602 Redeemed during the year/period ,230, ,562,302 Outstanding, end of year/period 90,248, ,481 90,248, ,481 42,654, ,541 11,248, , ,868, ,728, ,501, ,255,013 17

20 Schedules 4. RESERVES AND SURPLUS Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 Unit premium reserve Balance, beginning of year/period Net premium/discount on issue/ (313,893) 13,473 (264,063) (185,869) (43,710) (4,698) ,207 redemption of units Transferred () / from equalisation 314,971 (13,473) 263, ,869 45,839 4, ,145 account Balance, end of year/period 1,078 - (81) - 2, ,352 Unrealised appreciation reserve Balance, beginning of year/period Unrealised appreciation in value of ,068 12,625 investments Balance, end of year/period ,068 12,625 Retained surplus Balance, beginning of year/period 45,536-80,111-7,246-3, Surplus transferred from revenue 990,940 45,536 (1,795) 80,111 32,637 7,246 60,529 3,897 7,475 1,538 5,720 99,225 account Balance, end of year/period 1,036,476 45,536 78,316 80,111 39,883 7,246 64,426 3,897 7,475 1,538 5,720 99,225 Total reserves 1,037,820 45,536 78,235 80,111 42,013 7,247 64,426 3,897 7,871 1,866 21, ,202 The share of the plans in the reserves and surplus is as follows: Growth 7,244 1,799 21,274 83,881 Dividend Quarterly Dividend ,216 Half Yearly Dividend 1,705 Annual Dividend 1,400 Retail Growth 5, , , ,586 3,550 Retail Regular Dividend 1, , Retail Daily Dividend Retail Weekly Dividend Retail Monthly Dividend Retail Quarterly Dividend Institutional Growth 1,032,624 45,485 62,974 79,156 32,101 4, Institutional Daily Dividend Institutional Regular Dividend 2, Institutional Weekly Dividend Institutional Monthly Dividend , ,037,820 45,536 78,235 80,111 42,013 7,247 64,426 3,897 7,871 1,866 21, , CURRENT LIABILITIES Amount due AMC for management 10, , ,313 fees Sundry credirs for units redeemed by invesrs: - Lateral shift payable - 360, Others ,486 2, ,783 Interscheme payable Contract for purchase of investments ,436 Dividend payable on units Dividend distribution tax payable ,

21 Schedules Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 Unclaimed redemption Unit Application Pending Allotment , Commission distriburs payable 2, ,041 4, ,345 Load pending utilisation , ,626 Cusdy Fees Payable Other current liabilities 2, , ,430 16, ,420 64,001 11,845 3,754 1, , INVESTMENTS Equity shares ,027 Privately placed / unlisted debentures - 70, , ,977 80, ,992 and bonds Listed debentures and bonds , ,336 Certificates of deposit 10,614,660 3,089,135 4,175,531 8,038,772 2,457, , , , , ,217 2,750,393 2,965,586 Commercial paper 3,373, , ,044 1,964, , , ,322 13,988,129 3,458,457 4,565,575 10,503,037 2,457,437 1,375, , , , ,217 2,750,393 4,231,263 (i) All the investments are held in the name of the Scheme, as per clause 7 of the Seventh Schedule under Regulation 44(1) of SEBI (Mutual s) Regulations, (ii) Aggregate appreciation and depreciation in the value of investments are as follows: Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 Equity shares - appreciation ,217 - depreciation ,251 Privately placed / unlisted debentures and bonds - appreciation depreciation Listed debentures and bonds - appreciation depreciation Certificates of deposit - appreciation ,068 5,148 - depreciation ,489 Commercial paper - appreciation depreciation ,903 Axis Income Saver 19

22 Schedules (iii) The aggregate value of investments acquired and sold/redeemed/expired during the year / period and these amounts as a percentage of average daily net assets are as follows: Purchases (excluding collateralised lending, fixed deposits, futures and options) Axis Liquid Axis Liquid Axis Treasury Advantage April 1, 2010 Ocber 9, 2009 March 31, 2010 April 1, 2010 Axis Treasury Advantage Ocber 9, 2009 March 31, 2010 Axis Short Term April 1, 2010 Axis Short Term January 22, 2010 March 31, 2010 Plan - Series 1 (384 Days) April 1, 2010 Plan - Series 1 (384 Days) March 17, 2010 March 31, 2010 Plan-Series 11 (371 Days) January 18, 2011 Plan - Series 12 (367 days ) February 9, 2011 Plan - Series 13 (370 days ) March 23, 2011 Axis Income Saver July 16, amount 324,323,958 31,875, ,138, ,196,313 21,061,543 6,328, ,498 1,753, , ,139 2,729,853 28,834,056 - as a percentage of average daily % % % % % % 93.96% % % % 99.79% % net assets Purchases (index / sck futures) - amount ,236 - as a percentage of average daily % net assets Purchases (index / sck options) - amount ,096 - as a percentage of average daily % net assets Sales (excluding collateralised lending, fixed deposits, futures and options) - amount 315,304,303 28,449, ,709, ,046,088 20,173,313 4,959, , ,838 65,411 66,814-24,744,475 - as a percentage of average daily % % % % % % 94.54% 94.00% 15.23% 59.07% % net assets Sales (index / sck futures) - amount ,214 - as a percentage of average daily % net assets Sales (index / sck options) - amount as a percentage of average daily % net assets (iv) The aggregate purchases made by the schemes during the current and previous period and the fair value of such investments as at in companies which have invested in any scheme of the in excess of five per cent of that scheme s net assets are provided in Attachment I. (v) Aggregate fair value of non traded investments as on valued in good faith (value as on March 31, 2010 excludes Certificate of deposit & Commercial paper) Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver March 31, 2010 March 31, 2010 March 31, 2010 March 31, ,988,129 70,000 4,565, ,000 2,457, , ,759 80, , ,217 2,750,393 3,552,236 20

23 Schedules Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver March 31, 2010 March 31, 2010 March 31, 2010 March 31, DEPOSITS Deposit with scheduled bank , , , , OTHER CURRENT ASSETS Balances with banks in current accounts , , ,286 Sundry debrs for units issued invesrs: - Lateral shift receivable - - 5, , ,064 - Others ,668 14,713 1,875 14, ,221 Interscheme receivable ,477 10,412-5, Contracts for sale of investments Margin deposit with Clearing Corporation of India Limited 51, ,050 30, Outstanding and accrued income ,551 6, ,170 Amount due from AMC , Cash margin money placed for derivatives ,000 Collateralised lending 16, ,727 12,521 9,745 1,035 3, INTEREST 68, , , ,256 8,362 39,411 6, ,194 April 1, 2010 Ocber 9, 2009 April 1, 2010 Ocber 9, 2009 April 1, 2010 January 22, 2010 April 1, 2010 March 17, 2010 January 18, 2011 February 9, 2011 March 23, 2011 July 16, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 Money market instruments 1,416,391 35, , , ,533 14,535 60,118 3,639 8,463 1,565 4, ,377 Debentures and bonds 106,258 12, ,773 93,154 24,160 13,135 5, ,415 Fixed deposits 8,232-7, ,233 Government securities (including treasury bills) ,386 2, Collateralised lending 111,743 4,750 43,091 16,204 4, # - 1,350 12,046 Others ,642,980 53, , , ,304 28,201 66,633 3,973 8,702 1,565 5, ,071 # Amount less than Rs. 0.5 thousand

24 Schedules 10. MANAGEMENT AND TRUSTEESHIP FEE The Schemes pay fees for investment management services (excluding service tax) under an agreement with the AMC, which provides for computation of such fee as a percentage of Scheme s average daily net assets, after excluding the net asset value of the investments by the AMC in the scheme, the net asset value of the investments made in other schemes and fixed deposits as applicable. During the period ended, the Schemes have paid management fee at annualised average rate as follows: Management fee at annualised average rate Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver March 31, 2010 March 31, 2010 March 31, 2010 March 31, % 0.10% 0.17% 0.11% 0.38% 0.35% 0.15% 0.15% 1.03% 0.00% 0.00% 1.06% The Schemes pay fees for Trusteeship services under an agreement with the Trustee, aggregating Rs. 100,000 per month (excluding service tax),subject the ceiling of 0.10% per annum, which is apportioned all the Schemes on the basis of their monthly average net assets. 11. INCOME AND EXPENDITURE The tal income and expenditure and these amounts as a percentage of the scheme s average daily net assets on an annualised basis are provided below: Axis Liquid Axis Liquid Axis Treasury Advantage April 1, 2010 Ocber 09, 2009 March 31, 2010 April 1, 2010 Axis Treasury Advantage Ocber 09, 2009 March 31, 2010 Axis Short Term April 1, 2010 Axis Short Term January 22, 2010 March 31, 2010 Plan - Series 1 (384 Days) April 1, 2010 Plan - Series 1 (384 Days) March 17, 2010 March 31, 2010 Plan-Series 11 (371 Days) January 18, 2011 Plan - Series 12 (367 days ) February 9, 2011 Plan - Series 13 (370 days ) March 23, 2011 Axis Income Saver July 16, 2010 Income - amount 1,651,418 53, , , ,542 28,201 66,633 3,973 8,702 1,565 5, ,183 - as a percentage of average daily net 7.75% 4.32% 6.24% 4.85% 8.05% 6.22% 7.13% 10.68% 10.13% 9.90% 8.63% 6.64% assets Expenditure (excluding provision for net unrealised loss and realised loss on sale of investments) - amount 73,600 2,779 44,340 27,148 20,269 3,650 1, , ,213 - as a percentage of average daily net 0.35% 0.22% 0.37% 0.27% 0.76% 0.81% 0.20% 0.20% 1.32% 0.14% 0.15% 2.00% assets 12. RELATED PARTY TRANSACTIONS (i) Plan - Series 1 (384 Days), Plan-Series 11 (371 Days), Plan - Series 12 (367 days) and Plan - Series 13 (370 days) have entered in transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India is provided below. (a) Related party relationships Name Description of relationship Axis Bank Limited Sponsor of the Axis Mutual Trustee Limited Trustee of the Axis Asset Management Company Limited The Scheme s asset manager The Central Deposiry Services (India) Ltd Associate Schemes of the, under common control of the Sponsor Axis Equity Axis Tax Saver Axis Liquid Axis Treasury Advantage Axis Short Term Plan - Series 1 (384 Days) Plan-Series 3 (3 Months) Plan - Series 4 (3 Months) Plan-Series 11 (371 Days) Plan - Series 12 (367 days) Plan - Series 13 (370 days) Axis Triple Advantage Axis Income Saver Axis Midcap Axis Gold ETF (b) Interescheme transactions covered by Accounting Standard-18 are provided in Attachment 2. 22

25 Schedules (c) Transactions other than interscheme transactions covered by Accounting Standard-18: Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Name of Related Party Nature of transactions Year ended Period ended March 31, 2010 Balance as at Balance as at March 31, 2010 Period ended Balance as at Period ended Balance as at Period ended Balance as at Axis Mutual Trustee Limited Fees for trusteeship services # Axis Asset Management Company Limited Fees for investment management services 1, Axis Asset Management Company Limited Receivable for other expenses Axis Bank Limited Bank charges 1 # # # Amount less than Rs. 0.5 thousand (ii) Transactions covered by Regulation 25(8) of the SEBI Regulation with the sponsor or associate of the sponsor: Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver Year ended Period ended March 31, 2010 Year ended Period ended March 31, 2010 Year ended Period ended March 31, 2010 Year ended Period ended March 31, 2010 Period ended Period ended Period ended Period ended Axis Bank Limited Professional clearing member charges Bank charges # - # Marketing and selling expenses Commission paid on distribution of units 1, ,054 1, ,868 The Central Deposiry Services (India) Ltd Folio maintenance and corporate action charges # # Amount less than Rs. 0.5 thousand (iii) Subscription by the schemes in the issues lead managed by associate companies/ Subscription any issue of equity or debt on private placement basis where the sponsor or associate companies have acted as arranger or lead manager. F.Y Particulars Name of Security Type of Security Name of the Scheme Amount Axis Bank Limited (Sponsor) CAIRN INDIA LTD Corporate Bond AXIS SHORT TERM FUND 150,000 FY : Nil 13. Investments made during the year / period in the sponsor company and its group companies at cost is NIL (Previous year NIL) 14. Derivatives disclosure There are no outstanding derivatives positions in the Schemes as at (Previous year: NIL) 3. Disclosure for derivative transactions as required by SEBI circular Cir/IMD/DF/11/2010 dated August 18, 2010, has been made for the period 1st Ocber st March 2011 in Attachment 23

26 Schedules 15. NET ASSET VALUE Rupees Plans Axis Liquid Axis Liquid Axis Treasury Advantage Axis Treasury Advantage Axis Short Term Axis Short Term Plan - Series 1 (384 Days) Plan - Series 1 (384 Days) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Income Saver March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 Face Value Rs. 1,000 Face Value Rs. 1,000 Face Value Rs. 1,000 Face Value Rs. 1,000 Face Value Rs. 10 Growth Option Dividend Option Quarterly Dividend Option Half Yearly Dividend Option Annual Dividend Option Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Retail Growth Option 1, , , , Retail Dividend Option Retail Regular Dividend Option Retail Daily Dividend Option 1, , , , Retail Weekly Dividend Option 1, , , , Retail Monthly Dividend Option 1, , , , Retail Quarterly Dividend Option Institutional Growth Option 1, , , , Institutional Regular Dividend Option Institutional Daily Dividend Option 1, , , , Institutional Weekly Dividend Option 1, , , , Institutional Monthly Dividend Option 1, , , , Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 The net asset value of the Scheme s units are determined separately for units issued under the plans/options after including the respective unit capital and reserves and surplus. The net asset value disclosed above represents the computed NAV as on, and not the last declared NAV. 16. CONTINGENT LIABILITY Contingent liabilities as on : NIL (Previous year - NIL). 17. SEGMENT REPORTING Plan - Series 1 (384 Days), Plan-Series 11 (371 Days), Plan - Series 12 (367 days ) and Plan - Series 13 (370 days ) operate in one segment only viz. primarily generate attractive returns from a diverse and actively managed portfoilio of debt and money market instruments. 18. PRIOR PERIOD COMPARATIVES As these are the first financial statements of Plan-Series 11 (371 Days), Plan - Series 12 (367 days ), Plan - Series 13 (370 days ) and Axis Income Saver, since the date of launch, there are no prior period comparatives. The prior period figures for Axis Liquid, Axis Treasury Advantage, Axis Short Term and Plan - Series 1 (384 Days) are for a period of less than one year and hence are not comparable the current year. Prior year figures have been reclassified and regrouped, wherever applicable, conform current year s presentation. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Mumbai Date: July 4, 2011 Chandresh Nigam Head-Investments R. Sivakumar Head-Fixed Income Ninad Deshpande Manager-Fixed Income 24

27 Schedules 19. SUPPLEMENTARY INVESTMENT PORTFOLIO INFORMATION AND INDUSTRY WISE CLASSIFICATION Details of investment portfolio and industry wise classification of the Scheme s investments in each category of investments at are presented below. The industry and company exposures are stated as a percentage of the Scheme s net assets Axis Liquid Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category CERTIFICATE OF DEPOSITS BANKS 107,065 10,614, Andhra Bank Ltd. * 2, , Bank of India * 7, , Bank of Maharashtra. * 2, , Canara Bank * 6, , Central Bank of India * 2, , Dhanlaxmi Bank Ltd. * 2, , HDFC Bank Ltd. * 2, , IDBI Bank Ltd. * 1, , Jammu & Kashmir Bank Ltd. * 2, , Oriental Bank of Commerce * 2, , Punjab National Bank * 16,865 1,670, South Indian Bank Ltd. * 5, , State Bank of Bikaner & Jaipur * 5, , State Bank of Hyderabad * 2, , State Bank of India * 2, , State Bank of Mysore * 12,000 1,195, State Bank of Patiala * 2, , State Bank of Travancore * 7, , UCO Bank * 12,300 1,215, United Bank of India Ltd. * 7, , TOTAL 107,065 10,614, COMMERCIAL PAPER FINANCE 2, , Edelweiss Capital Ltd. * 1, , SREI Infrastructure Finance Ltd. * 1, , NON BANKING FINANCE COMPANY 4,400 2,151, IL&FS Financial Services Ltd. * , Manappuram General Finance & Leasing Ltd. * 1, , Muthoot Finance Ltd. * 1, , Tata Capital Ltd. * 1, , TGS Investment & Trade Pvt. Ltd. * , CONSUMER NON DURABLES , Marico Ltd. * , TOTAL 6,900 3,373, OTHER CURRENT ASSETS 68, TOTAL ASSETS 14,056, LESS: CURRENT LIABILITIES 16, NET ASSETS 14,040, * Non traded / thinly traded investments 25

28 Schedules Axis Treasury Advantage Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category CERTIFICATE OF DEPOSITS BANKS 42,100 4,175, Allahabad Bank * 3, , Canara Bank * 5, , Central Bank of India * 2, , Dena Bank * 2, , Dhanlaxmi Bank Ltd. * 2, , Federal Bank Ltd. * 2, , Oriental Bank of Commerce * 5, , South Indian Bank Ltd. * 2, , State Bank of Bikaner & Jaipur * 5, , State Bank of Mysore * 2, , State Bank of Travancore * , UCO Bank * 3, , Union Bank of India * 2, , United Bank of India Ltd. * 1, , TOTAL 42,100 4,175, COMMERCIAL PAPER NON BANKING FINANCE COMPANY , Trapti Trading & Invest Pvt. Ltd. * , Muthoot Finance Ltd. * , TOTAL , FIXED DEPOSIT BANKS 400,000, , % Bank of Nova Scotia (07/04/2011) 400,000, , TOTAL 400,000, , OTHER CURRENT ASSETS 207, TOTAL ASSETS 5,173, LESS: CURRENT LIABILITIES 64, NET ASSETS 5,109, * Non traded / thinly traded investments Axis Short Term Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category CERTIFICATES OF DEPOSIT BANKS 24,780 2,457, Allahabad Bank * 4, , Bank of Maharashtra. * 1, , Canara Bank * , Central Bank of India * 2, , HDFC Bank Ltd. * 2, , Oriental Bank of Commerce * 2, , Punjab National Bank * 4, , South Indian Bank Ltd. * 2, , State Bank of Mysore * , UCO Bank * 3, , TOTAL 24,780 2,457, OTHER CURRENT ASSETS 8, TOTAL ASSETS 2,465, LESS: CURRENT LIABILITIES 3, NET ASSETS 2,462, * Non traded / thinly traded investments 26

29 Schedules Plan - Series 1 (384 Days) Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category DEBENTURES AND BONDS Privately placed / unlisted debentures and bonds NON BANKING FINANCE COMPANY 80 79, % Kotak Mahindra Investments Ltd. * 80 79, TOTAL 80 79, COMMERCIAL PAPER FINANCE , India Infoline Ltd. * , NON BANKING FINANCE COMPANY 1, , ECL Finance Ltd. * , Kotak Mahindra Prime Ltd. * , Tata Capital Ltd. * , TOTAL 1, , CERTIFICATES OF DEPOSIT BANKS 2, , Bank of Maharashtra. * 1,000 99, IDBI Bank Ltd. * 1,000 99, Punjab National Bank * , TOTAL 2, , OTHER CURRENT ASSETS 6, TOTAL ASSETS 967, LESS: CURRENT LIABILITIES NET ASSETS 966, * Non traded / thinly traded investments Plan - Series 11 (371 Days) Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category CERTIFICATES OF DEPOSIT BANKS 4, , Canara Bank * , ICICI Bank Ltd. * , Indian Bank * , Punjab National Bank * , State Bank of Hyderabad * , State Bank of Travancore * , United Bank of India Ltd. * , TOTAL 4, , OTHER CURRENT ASSETS TOTAL ASSETS 434, LESS: CURRENT LIABILITIES NET ASSETS 434, * Non traded / thinly traded investments 27

30 Schedules AXIS FIXED TERM PLAN-SERIES 12 (367 DAYS) Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category CERTIFICATES OF DEPOSIT BANKS 1, , Canara Bank * , IDBI Bank Ltd. * , Indian Overseas Bank * , State Bank of Travancore * , TOTAL 1, , OTHER CURRENT ASSETS TOTAL ASSETS 114, LESS: CURRENT LIABILITIES NET ASSETS 114, * Non traded / thinly traded investments AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS) Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category CERTIFICATES OF DEPOSIT BANKS 30,062 2,750, Canara Bank * 5, , Central Bank of India * 5, , Bank of Baroda * 3, , IDBI Bank Ltd. * 4, , Indusind Bank Ltd. * 2, , Punjab & Sind Bank Ltd. * 2, , Syndicate Bank Ltd. * 2, , Union Bank of India * 2, , Vijaya Bank * 2, , TOTAL 30,062 2,750, OTHER CURRENT ASSETS TOTAL ASSETS 2,750, LESS: CURRENT LIABILITIES 87 - NET ASSETS 2,750, * Non traded / thinly traded investments Axis Income Saver Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category DEBENTURES AND BONDS Privately placed / unlisted debentures and bonds FINANCE , % LIC Housing Finance Ltd. * , Listed debentures and bonds BANKS , % National Housing Bank * , % Small Industries Development Bank of India * , TOTAL , EQUITY SHARES AUTO 35,000 24, Tata Mors Ltd. 35,000 24, BANKS 105, , Canara Bank 30,000 18, ICICI Bank Ltd. 35,000 39,

31 Schedules Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category Kotak Mahindra Bank Ltd. 25,000 11, State Bank of India 15,000 41, CONSTRUCTION PROJECT 50,000 9, Voltas Ltd. 50,000 9, CONSUMER NON DURABLES 190,000 44, Hindustan Unilever Ltd. 90,000 25, ITC Ltd. 100,000 18, FERROUS METALS 54,896 34, Tata Steel Ltd. 54,896 34, FERTILISERS 50,000 17, Tata Chemicals Ltd. 50,000 17, FINANCE 160,000 46, Housing Development Finance Corporation Ltd. 20,000 14, Indiabulls Financial Services Ltd. 100,000 15, A K Capital Services Ltd. 40,000 16, GAS 280,000 79, GAIL (India) Ltd. 80,000 37, Indraprastha Gas Ltd. 100,000 30, Petronet LNG Ltd. 100,000 12, INDUSTRIAL CAPITAL GOODS 27,848 18, BEML Ltd. 27,848 18, MINERALS/MINING 90,000 31, Coal India Ltd. 90,000 31, OIL 100,000 29, Oil & Natural Gas Corporation Ltd. 100,000 29, PETROLEUM PRODUCTS 120,000 71, Bharat Petroleum Corporation Ltd. 30,000 18, Hindustan Petroleum Corporation Ltd. 60,000 21, Reliance Industries Ltd. 30,000 31, SOFTWARE 150, , HCL Technologies Ltd. 40,000 19, Infosys Technologies Ltd. 15,000 48, Tata Consultancy Services Ltd. 20,000 23, Wipro Ltd. 75,000 36, TELECOM - SERVICES 100,000 35, Bharti Airtel Ltd. 100,000 35, TOTAL 1,512, , CERTIFICATES OF DEPOSIT BANKS 31,318 2,965, Bank of Baroda * 1, , Bank of India * 2, , Canara Bank * 3, , Corporation Bank * 4, , Indian Bank * 1, , Oriental Bank of Commerce * 2, , State Bank of Hyderabad * 2, , State Bank of India * 2, , State Bank of Mysore * 1, , State Bank of Patiala * 1, , State Bank of Travancore * 3, , Syndicate Bank Ltd. * 2, , United Bank of India Ltd. * , TOTAL 31,318 2,965,

32 Schedules Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category COMMERCIAL PAPER NON BANKING FINANCE COMPANY , Morgan Stanley * , TOTAL , FIXED DEPOSITS BANKS 120,000, , % Bank of Nova Scotia (07/04/2011) 120,000, , TOTAL 120,000, , OTHER CURRENT ASSETS 58, TOTAL ASSETS 4,409, LESS: CURRENT LIABILITIES 38, NET ASSETS 4,371, * Non traded / thinly traded investments Interscheme Transactions Attachment 2 Plan Series 1 Name of Related Party Nature of transactions Year ended Balance as at Period ended March 31, 2010 Balance as at March 31, 2010 Axis Liquid Purchase of investments 211, Axis Liquid Sale of investments Axis Treasury Advantage Purchase of investments 6,960-1,239,935 - Axis Treasury Advantage Sale of investments 1, ,839 - Axis Short Term Purchase of investments 3, Axis Short Term Sale of investments 1, Axis Triple Advantage Purchase of investments Axis Triple Advantage Sale of investments Axis Income Saver Purchase of investments Axis Income Saver Sale of investments 1, AXIS FIXED TERM PLAN-SERIES 11 (371 DAYS) Name of Related Party Nature of transactions Period ended Balance as at Axis Triple Advantage Purchase of investments 290,776 - Axis Triple Advantage Sale of investments 65,044 - Axis Income Saver Purchase of investments 60,072 - Axis Income Saver Sale of investments AXIS FIXED TERM PLAN-SERIES 12 (367 DAYS) Name of Related Party Nature of transactions Period ended Balance as at Axis Triple Advantage Purchase of investments 66,766 - Axis Triple Advantage Sale of investments 21,211 - Axis Income Saver Purchase of investments 45,591 - Axis Income Saver Sale of investments 45,602 - AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS ) Name of Related Party Nature of transactions Period ended Balance as at Axis Income Saver Purchase of investments 228,288 - Axis Income Saver Sale of investments

33 Attachment 3 AXIS INCOME SAVER Derivative Disclosure A. Hedging Positions through Futures as on Underlying Long / Short Futures Price when purchased Current price of the contract Margin maintained in Rs. Lakhs NIL NIL NIL NIL NIL Total %age of existing assets hedged through futures : NIL For the half year ended on following are the details of hedging transactions through futures which have been squared off/expired: Total Number of contracts where futures were bought : 600 Total Number of contracts where futures were sold : 600 Gross Notional Value of contracts where futures were bought : (Rs. in 000 s) 169,141 Gross Notional Value of contracts where futures were sold : (Rs. in 000 s) 168,407 Net Profit/(Loss) value on all contracts combined : (Rs. in 000 s) (734) B. Other than Hedging Positions through Futures as on Underlying Long / Short Futures Price when purchased (Rs) Current price of the contract (Rs) Margin maintained (Rs. Lakhs) NIL NIL NIL NIL NIL Total exposure due futures (non hedging positions) as a %age of net assets : NIL For the half year ended on following are the details of non-hedging transactions through futures which have been squared off/expired: Total Number of contracts where futures were bought : 130 Total Number of contracts where futures were sold : 130 Gross Notional Value of contracts where futures were bought : (Rs. in 000 s) 40,200 Gross Notional Value of contracts where futures were sold : (Rs. in 000 s) 39,483 Net Profit/(Loss) value on all contracts combined : (Rs. in 000 s) (716) C. Hedging Positions through Put Options as on Underlying Number of Contracts Option Price when purchased Current Option Price Current Option Price NIL NIL NIL NIL NIL Total % age of existing assets hedged through put options - NIL For the half year ended on following are the details of hedging transactions through options which have been exercised/expired : Total Number of contracts entered in : NIL Gross National value of contracts : NIL Net Profit/Loss on all contracts (premium paid treated as loss) : NIL D. Other than Hedging Positions through Options as on Underlying Call / put Number of contracts Option Price when purchased Current Price NIL NIL NIL NIL NIL Total Exposure through options as a %age of net assets : NIL For the half year ended on following are the details of non-hedging transactions through options which have been exercised/expired : Total Number of contracts entered in : NIL Gross National Value of contracts : NIL Net Profit/Loss on all contracts (premium paid treated as loss) : NIL E. Hedging Positions through swaps as on - NIL 31

34 Axis Equity Axis Equity Axis Tax Saver Consolidated Audirs Report To the Trustee of AXIS MUTUAL FUND 1. We have audited the attached balance sheets of the schemes mentioned below (collectively the Schemes ) as at 31 March 2011 and also the revenue accounts, for the period as mentioned below, annexed there. These financial statements are the responsibility of the management of Axis Asset Management Company Limited, the Schemes asset manager. Our responsibility is express an opinion on these financial statements based on our audit. Name of the Scheme Period covered by revenue account Name of the Scheme Period covered by revenue account Axis Mutual - Axis Equity 1 April March 2011 Axis Mutual Axis Midcap 18 February March 2011 Axis Mutual Axis Tax Saver 1 April March 2011 Axis Mutual Axis Triple Advantage Plan 14 July March We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We report that: i. We have obtained all the information and explanations, which the best of our knowledge and belief were necessary for the purposes of our audit. ii. The balance sheets and revenue accounts dealt with by this report are in agreement with the books of account. iii. In our opinion, the balance sheets and revenue accounts dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule the Securities and Exchange Board of India (Mutual s) Regulations, 1996 ( the SEBI Regulations ). iv. In our opinion, and on the basis of information and explanations given us, the methods used value non traded securities, where applicable, as at 31 March 2011 are in accordance with the SEBI Regulations and other guidelines issued by the Securities and Exchange Board of India as applicable and approved by the Board of Direcrs of Axis Mutual Trustee Limited, and are fair and reasonable. v. In our opinion, and the best of our information and according the explanations given us, the said financial statements give the information required by the SEBI Regulations as applicable, 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 31 March 2011; and b) in the case of the revenue accounts, of the surplus for the period as mentioned above For S. R. Batliboi & Co. Firm Registration No E Chartered Accountants per Surekha Gracias Partner Membership No: Mumbai, 4 July 2011 Axis Tax Saver Balance Sheet (All amounts in thousands of Rupees) Axis Midcap Axis Triple Advantage Schedule March 31, 2010 March 31, 2010 SOURCES OF FUNDS Unit capital 2(b) & 3 6,883,538 8,152, , ,995 1,607,690 4,999,893 Reserves and surplus 2(b) & 4 709, , ,770 17,283 38, ,246 Current liabilities 5 207, ,394 6,331 14,052 36,977 57,420 7,800,184 8,582,510 1,024, ,330 1,683,054 5,229,559 APPLICATION OF FUNDS Investments 2(c), 6 & 18 7,341,688 7,491, , ,196 1,670,799 4,949,266 Deposits 7 90, , ,000 Other current assets 8 368, ,548 67,259 69,134 12, ,293 7,800,184 8,582,510 1,024, ,330 1,683,054 5,229,559 The accompanying schedules are an integral part of this balance sheet. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments Mumbai Date: July 4, 2011 R. Sivakumar Head-Fixed Income Pankaj Murarka Manager-Equity Ninad Deshpande Manager-Fixed Income 32

35 Revenue Account (All amounts in thousands of Rupees) Axis Equity Axis Equity Axis Tax Saver Axis Tax Saver Axis Midcap Axis Triple Advantage Schedule April 1, 2010 November 16, 2009 April 1, 2010 December 29, 2009 February 18, 2011 July 14, 2010 March 31, 2010 March 31, 2010 INCOME Dividend 2(d) 67,320 1,539 3, ,145 Interest 2(d) & 9 73,526 37,105 2, , ,687 Profit on sale/redemption of investments 2(d) 515,003 23,277 31,095 2,248 1,811 30,231 (inculding F&O), net Other Income - - # Total 655,849 61,921 37,717 2,415 12, ,063 EXPENSES AND LOSSES Provision for net unrealised loss in value 2(c) & 6(ii) of investments Loss on inter-scheme transfer/sale of 2(d) # - 1, investments, net Management fee 10 81,687 26,082 5, ,205 25,328 Trusteeship fee Cusdian service charges 2, Registrar service charges 10,366 1, ,777 Commission distriburs 41,654 8, ,008 24,969 Audit fee Marketing expenses 18,892 7,136 2,662-1,807 8,659 Other operating expenses 21,014 3,044 1, ,997 Less: Expenses reimbursed/ be (8,035) (471) (110) (153) (1,171) (1,615) reimbursed by AMC Total 168,700 49,529 11, ,603 65,422 Surplus for the year/period 487,149 12,392 26,469 1,931 7,598 71,641 Equalisation (debit) / credit 2(e) (37,025) 2,143 52, (264) 11,520 Income distribution on capital account - - (13,443) Surplus transferred the balance sheet 4 450,124 14,535 65,993 2,483 7,334 83,161 # Amount less than Rs. 0.5 thousand The accompanying schedules are an integral part of this revenue account. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments Mumbai Date: July 4, 2011 R. Sivakumar Head-Fixed Income Pankaj Murarka Manager-Equity Ninad Deshpande Manager-Fixed Income 33

36 SCHEDULES TO THE FINANCIAL STATEMENTS FOR THE YEAR/PERIOD ENDED MARCH 31, 2011 (All amounts in thousands of Rupees unless specified otherwise) Schedules 1. BACKGROUND Axis Bank Limited is the sponsor of Axis Mutual ( The ). In accordance with the Securities and Exchange Board of India ( SEBI ) (Mutual The key features of the schemes of Axis Mutual are as below: s) Regulations, 1996 ( the SEBI Regulations ), the Board of Direcrs of Axis Mutual Trustee Limited ( the Trustee ) has appointed Axis Asset Management Company Limited ( the AMC ) manage the s affairs and operate its Schemes. Scheme Name Type of Scheme Investment objective of the Scheme NFO Open NFO Close Axis Equity Open ended equity scheme To achieve long term capital appreciation by investing in a November 11, 2009 diversified portfolio predominantly consisting of equity and equity related securities including derivatives. December 8, 2009 Axis Tax Saver Open ended equity linked tax saving scheme To generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equityrelated securities. Axis Midcap Open ended equity scheme To achieve long term capital appreciation by investing predominantly in equity and equity related instruments of mid size companies. The focus of the would be invest in relatively larger companies within this category. Axis Triple Advantage Open ended hybrid scheme To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments, fixed income instruments and gold exchange traded funds. December 17, 2009 December 21, 2009 January 31, 2011 February 14, 2011 June 30, 2010 July 29, 2010 Plans Growth Dividend Growth Dividend Growth Dividend Growth Dividend Presentation of these separate Balance sheets and Revenue accounts in a columnar form is not intended indicate that they bear any relation each other, or are interdependent or comparable in any way. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are prepared on the accrual basis of accounting, under the hisrical cost convention, as modified for investments, which are marked-market. The significant accounting policies, which are in accordance with the SEBI Regulations and have been approved by the Boards of Direcrs of the AMC and the Trustee, are stated below. (a) Determination of net asset value ( NAV ) The net asset value of the units are determined separately for the units issued under the Plans. For reporting the net asset value within the portfolio, the Scheme s daily income earned, including realised profit or loss and unrealised gain or loss in the value of investments, and expenses incurred, are allocated the related plans in proportion their respective daily net assets arrived at by multiplying day-end outstanding units by previous day s closing NAV. (b) Unit capital Unit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactions relating the period ended on that date. Upon issue and redemption of units, the net premium or discount the face value of units is adjusted against the unit premium reserve of each Plan. (c) Investments Accounting for investment Purchase and sale of investments are recorded on the date of transaction at cost and sale price respectively, after considering all transaction costs like brokerage, commission, charges paid Clearing Corporation of India Limited and fees payable, if any. Right entitlements are recognised as investments on the ex-rights date. Bonus entitlements are recognised as investments on the ex-bonus date. Valuation of investments Investments in equity shares / warrants / equity futures / equity options which have traded during a period of thirty days (prior the balance sheet date) are stated at the closing prices on the balance sheet date or the last trading day before the balance sheet date, as may be applicable, on The National Sck Exchange of India Limited (principal sck exchange). When on a particular valuation day, a security has not been traded on the principal sck exchange, the value at which it is traded on The Bombay Sck Exchange Limited is used. Non traded and thinly traded equity shares / warrants / equity futures / equity options, including those not traded within thirty days prior the balance sheet date are valued at the fair value as determined by the AMC under procedures approved by the Trustee of Axis Mutual in accordance with the SEBI Regulations. Prior September 1, 2010, government securities were valued at the prices released by an agency (CRISIL), as suggested by the Association of Mutual s in India ( AMFI ). Pursuant the AMFI notification dated June 8, 2010, with effect from, September 1, 2010, government securities are valued at the average of the prices released by CRISIL and ICRA, as suggested by AMFI, on the basis of the valuation principles laid down by SEBI. Investments in fixed income securities (other than government securities) are valued as follows: Prior July 30, 2010, all quoted debt investments (other than thinly traded), were valued at the closing traded price as at the valuation date. Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all quoted debt investments (other than thinly traded) are valued at the weighted average traded price as at the valuation date. Prior July 30, 2010, all money market instruments, floating rate bonds and debt securities (having maturity up 182 days) not traded, were (d) (e) (f) valued at amortised cost based on purchase price or last traded price, which includes discount / premium accrued on a straight line basis over the period maturity. Prior July 30, 2010, all money market instruments, floating rate bonds and debt securities (having maturity more than 182 days) not traded, were stated at their fair value as determined by the AMC in accordance with the SEBI Regulations and related circulars, based on the average of the comparative yields released by CRISIL and ICRA, as suggested by the Association of Mutual s in India ( AMFI ). Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all non-traded / thinly traded money market securities, floating rate bonds and debt securities having maturity up 91 days are valued at amortised cost based on purchase price or last traded price, which includes discount / premium accrued on a straight line basis over the period maturity. Pursuant SEBI circular dated February 2, 2010, with effect from July 30, 2010, all non-traded / thinly traded money market securities, floating rate securities and debt securities over 91 days maturity are valued using the average of the yields released by CRISIL and ICRA, as suggested by AMFI. Accounting policy for valuation of debt and money market securities has been changed with effect from July 30, 2010, as prescribed by SEBI vide circular dated February 2, 2010 and circular dated June 21, Impact of this change in accounting policy is not ascertainable. Investment in listed mutual fund units are valued at closing price on The National Sck Exchange of India Limited on the valuation date. Investments in unlisted mutual fund units are valued at closing NAV on the valuation date. The net unrealized appreciation / depreciation in the value of investments is determined separately for each category of investments. The change in net unrealized loss, if any, between two balance sheet dates is recognized in the revenue account and net unrealized gain, if any, is adjusted in the unrealized appreciation reserve. Revenue recognition Dividend income is recognised on the ex-dividend date. Interest income is recognised on an accrual basis. Profit or loss on sale/redemption of investments is determined on the basis of the weighted average cost method. Equalisation account In case of open ended schemes, when units are issued or redeemed, the distributable surplus (excluding unit premium reserve, but including balance of distributable surplus at the beginning of the year) as on the date of the transaction is determined. Based on the number of units outstanding on the transaction date, the distributable surplus (excluding unit premium reserve, but including balance of distributable surplus at the beginning of the year) associated with each unit is computed. The per unit amount so determined is credited / debited the equalisation account on issue / redemption of each unit respectively. The balance in equalisation account is transferred revenue account at the year-end without affecting the net income of the Scheme. Load In accordance with SEBI circular no. SEBI/IMD/CIR No. 4/ /09 dated June 30, 2009 with effect from August 1, 2009 exit load collected in excess of 1% of the redemption proceeds is credited the scheme as income. Load other than the above is utilized pay commission distriburs and other marketing and selling expenses in accordance with SEBI guidelines. Any surplus is treated as income as and when considered appropriate. 34

37 Schedules 3. Unit Capital Axis Equity Axis Equity Axis Tax Saver Axis Tax Saver Axis Midcap Axis Triple Advantage March 31, 2010 March 31, 2010 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Growth Outstanding, beginning of year/period 626,539, ,265,394 11,601, , Issued -new fund offer ,277, ,102, , , ,719, ,307, ,286, ,372,869 -during the year/period 138,680, ,386,804 21,291, ,910 37,664, ,640 10,983, ,839 4,236, , ,364, ,213,645 Redeemed during the year/period 238,387, ,383, ,028, ,050, ,922, ,224 81,098, ,983 Outstanding, end of year/period 526,832, ,268, ,539, ,265,394 49,265, ,653 11,601, , ,033, ,270, ,553, ,775,531 Dividend Outstanding, beginning of year/period 188,706, ,887,066 8,798, , Issued -new fund offer ,778, ,987, , ,800 35,413, ,131 90,957, ,571 -during the year/period 39,655, ,552 10,048, ,488 26,915, ,152 8,018, ,182 1,215, ,158 47,944, ,440 Redeemed during the year/period 66,840, ,401 20,120, , ,893, ,938 16,464, ,649 Outstanding, end of year/period 161,521, ,615, ,706, ,887,066 35,713, ,134 8,798, ,982 33,735, , ,436, ,224,362 Total Outstanding, beginning of year/period 815,246, ,152,460 20,399, , Issued -new fund offer ,055, ,090, ,397, , ,132, ,661, ,244, ,282,440 -during the year/period 178,335, ,783,356 31,339, ,398 64,579, ,792 19,002, ,021 5,452, , ,308, ,693,085 Redeemed during the year/period 305,227, ,052, ,149, ,251, ,816, ,162 97,563, ,632 Outstanding, end of year/period 688,353, ,883, ,246, ,152,460 84,978, ,787 20,399, , ,768, ,607, ,989, ,999,893 35

38 Axis Equity Axis Equity Axis Tax Saver Axis Tax Saver Axis Midcap Schedules Axis Triple Advantage March 31, 2010 March 31, RESERVES AND SURPLUS Unit premium reserve Balance, beginning of year/period (20,299) - 6, Net premium/discount on issue/ (109,968) (18,156) 113,973 7,437 (761) 26,923 redemption of units Transferred () / from equalisation 37,025 (2,143) (52,967) (552) 264 (11,520) account Balance, end of year/period (93,242) (20,299) 67,891 6,885 (497) 15,403 Unrealised appreciation reserve Balance, beginning of year/period 332,420-7, Unrealised appreciation in value of 5, ,420 24,488 7,915 31,550 73,682 investments Balance, end of year/period 337, ,420 32,403 7,915 31,550 73,682 Retained surplus Balance, beginning of year/period 14,535-2, Surplus transferred from revenue 450,124 14,535 65,993 2,483 7,334 83,161 account Balance, end of year/period 464,659 14,535 68,476 2,483 7,334 83,161 Total reserves 709, , ,770 17,283 38, ,246 The share of the plans in the reserves and surplus is as follows: Growth 542, , ,423 9,834 30, ,085 Dividend 166,453 75,590 49,347 7,449 7,981 42, , , ,770 17,283 38, , CURRENT LIABILITIES Amount due AMC for 7, ,795 3,742 management fees Sundry credirs for units redeemed by invesrs: - Lateral shift payable 2,514 1, ,067 1,069 - Others 29,447 45, ,572 4,053 Interscheme payable - 18,435 4, ,348 Contract for purchase of 124, ,957 4,927 28,571 investments Unclaimed dividend Unclaimed redemption Commission distriburs payable 12,455 9, ,588 Load pending utilisation 26,481 12, ,051 9,873 Cusdy Fees Payable Other current liabilities 4,870 8, , , ,394 6,331 14,052 36,977 57, INVESTMENTS Equity shares 6,928,105 7,033, , , ,514 1,657,567 Units of mutual fund ,235,777 Privately placed / unlisted 1, ,994 debentures and bonds Listed debentures and bonds ,685 Certificates of deposit 412, , , ,285 1,557,243 Futures and options - 2, ,341,688 7,491, , ,196 1,670,799 4,949,266 (i) All the investments are held in the name of the Scheme, as per clause 7 of the Seventh Schedule under Regulation 44(1) of SEBI (Mutual s) Regulations,

39 (ii) Aggregate appreciation and depreciation in the value of investments are as follows: Schedules Equity shares Axis Equity Axis Equity Axis Tax Saver Axis Tax Saver Axis Midcap Axis Triple Advantage March 31, 2010 March 31, appreciation 571, ,685 49,949 8,933 33, ,649 - depreciation 234,738 40,220 17,546 1,018 2,209 62,721 Units of mutual fund - appreciation ,465 - depreciation Privately placed / unlisted debentures and bonds - appreciation 1, depreciation Listed debentures and bonds - appreciation ,313 - depreciation ,881 Certificates of deposit - appreciation ,908 - depreciation Futures and options - appreciation - 3, depreciation (iii) The aggregate value of investments acquired and sold/redeemed/expired during the year/period and these amounts as a percentage of average daily net assets are as follows: Axis Equity April 1, 2010 Axis Equity Axis Tax Saver November 16, 2009 April 1, 2010 March 31, 2010 Axis Tax Saver December 29, 2009 March 31, 2010 Axis Midcap February 18, 2011 Axis Triple Advantage July 14, 2010 Purchases (excluding collateralised lending, fixed deposits, futures and options) - amount 46,463,092 26,158,385 1,501, ,307 1,644,611 13,019,313 - as a percentage of average daily net assets % % % % 98.71% % Purchases (index / sck futures) - amount 22,822,604 9,041, ,062,974 - as a percentage of average daily net assets % % % Purchases (index / sck options) - amount 224, , as a percentage of average daily net assets 2.83% 2.01% % Sales (excluding collateralised lending, fixed deposits, futures and options) - amount 47,163,776 19,099, ,730 53,916 8,521 8,202,222 - as a percentage of average daily net assets % % % 70.88% 0.51% % Sales/Expiry (index / sck futures) - amount 23,748,568 8,269, ,066,327 - as a percentage of average daily net assets % % % Sales/Expiry (index / sck options) - amount 128, , ,890 - as a percentage of average daily net assets 1.62% 1.57% % 37

40 (iv) Schedules The aggregate purchases made by the schemes during the current and previous period and the fair value of such investments as at in companies which have invested in any scheme of the in excess of five per cent of that scheme s net assets are provided in Attachment I. (v) Aggregate fair value of non traded investments as on valued in good faith (value as on March 31, 2010 excludes Certificate of deposit & Commercial paper) 7. DEPOSITS Deposit with scheduled bank (Margin deposit for derivatives) Axis Equity Axis Equity Axis Tax Saver Axis Tax Saver Axis Midcap Axis Triple Advantage March 31, 2010 March 31, , , ,285 2,055,922 Axis Equity Axis Equity Axis Tax Saver Axis Tax Saver Axis Midcap Axis Triple Advantage March 31, 2010 March 31, , , ,000 90, , , OTHER CURRENT ASSETS Balances with banks in current accounts 28,225 25,424 18,233 5, ,127 Sundry debrs for units issued invesrs: - Lateral shift receivable 1, , Others 3,402 19,067 47,208 30, Interscheme receivable , Contracts for sale of investments 247, ,463-3,701-69,888 Margin deposit with Clearing Corporation of India Limited - 20, ,500 Outstanding and accrued income 3, ,546 Application money pending allotment - 19,691-1, Amount due from AMC 8, ,171 1,806 Cash margin placed for derivatives 20,000 50, ,000 Collateralised lending 55, ,421 1,059 25,287 8, Other current assets , INTEREST April 1, , ,548 67,259 69,134 12, ,293 November 16, 2009 March 31, 2010 April 1, 2010 December 29, 2009 March 31, 2010 February 18, 2011 July 14, 2010 Money market instruments 22,497 2, ,350 43,412 Debentures and bonds 5,020 4, ,668 Fixed Deposits 23,528 4, ,806 Government securities (including treasury bills) - 1, ,601 Collateralised lending 22,395 23,500 2, ,705 18,777 Others ,526 37,105 2, , ,687 38

41 10. MANAGEMENT AND TRUSTEESHIP FEE The Schemes pay fees for investment management services (excluding service tax) under an agreement with the AMC, which provides for computation of such fee as a percentage of Scheme s average daily net assets, after excluding the net asset value of the investments by the AMC in the scheme, the net asset value of the investments made in other schemes and fixed deposits as applicable. During the year ended 31st March 2011, the Schemes have paid management fee at annualised average rate as follows: Axis Equity Axis Equity Axis Tax Saver Axis Tax Saver Axis Midcap Schedules Axis Triple Advantage March 31, 2010 March 31, 2010 Management fee at annualised average rate 1.03% 1.03% 1.19% 0.54% 1.15% 1.06% The Schemes pay fees for Trusteeship services under an agreement with the Trustee, aggregating Rs. 100,000/- per month (excluding service tax),subject the ceiling of 0.10% per annum which is apportioned all the Schemes on the basis of their monthly average net assets. 11. INCOME AND EXPENDITURE The tal income and expenditure and these amounts as a percentage of the scheme s average daily net assets on an annualised basis are provided below: Income Axis Equity Axis Equity Axis Tax Saver April 1, 2010 November 16, 2009 March 31, 2010 April 1, 2010 Axis Tax Saver December 29, 2009 March 31, 2010 Axis Midcap February 18, 2011 Axis Triple Advantage July 14, amount 655,849 61,921 37,717 2,415 12, ,063 - as a percentage of average daily net assets 8.27% 2.31% 8.38% 12.46% 6.36% 4.40% Expenditure (excluding provision for net unrealised loss and realised loss on sale of investments) - amount 168,700 47,944 11, ,601 63,931 - as a percentage of average daily net assets 2.13% 1.79% 2.50% 2.50% 2.40% 2.05% 12. RELATED PARTY TRANSACTIONS (i) Transactions covered by Regulation 25(8) of the SEBI Regulation with the sponsor or associate of the sponsor: Axis Equity Year ended Axis Equity Period ended March 31, 2010 Axis Tax Saver Year ended Axis Tax Saver Period ended March 31, 2010 Axis Midcap Period ended Axis Triple Advantage Period ended Axis Bank Limited (Sponsor) Professional clearing member charges Bank charges 1, Marketing & Selling expenses Commission paid on distribution of units 32,387 5, ,425 The Central Deposiry Services (India) Ltd (Associate) Folio maintenance and corporate action charges 1 - # - - # - # - # Amount less than Rs. 0.5 thousand (ii) Subscription by the schemes in the issues lead managed by associate companies/ Subscription any issue of equity or debt on private placement basis where the sponsor or associate companies have acted as arranger or lead manager. F.Y Particulars Name of Security Type of Security Name of the Scheme Amount Axis Bank Limited (Sponsor) JAYPEE INFRATECH LIMITED Equity Shares AXIS EQUITY FUND 142,460 Axis Bank Limited (Sponsor) ORIENT GREEN POWER CO. Equity Shares AXIS EQUITY FUND 95,649 F.Y : NIL 39

42 Schedules 13. Investments made during the year / period in the sponsor company and its group companies at cost Investments made by the Scheme in year Axis Equity Axis Equity Axis Tax Saver Year ended Period ended March 31, 2010 Year ended Axis Tax Saver Period ended March 31, 2010 Axis Midcap Period ended Axis Triple Advantage Period ended Axis Bank Limited 328, ,396 34,685 4, ,213 Note: Includes amount placed as fixed deposits 14. Derivatives disclosure a) There are no outstanding derivatives positions in the Schemes as at. Disclosure for derivative transactions as required by SEBI circular Cir/IMD/DF/11/2010 dated August 18, 2010, has been made for the period 1st Ocber st March 2011 in Attachment 2. b) Outstanding derivatives positions in the Schemes as at March 31, (i) Outstanding futures contract positions as at March 31, 2010 Scheme name Scrip name Number of contracts outstanding Number of units outstanding March 31, 2010 March 31, 2010 Long Short Axis Equity Century Textiles & Industries Ltd ,400 - Axis Equity HDFC Bank Ltd ,000 Axis Equity ICICI Bank Ltd ,950 - Axis Equity Infosys Technologies Ltd ,400 - Axis Equity Larsen & Toubro Ltd ,000 - Axis Equity Mahindra & Mahindra Ltd ,824 - Axis Equity Oil & Natural Gas Corporation Ltd ,950 Axis Equity Sterlite Industries Ltd ,932 - Axis Equity Tata Mors Ltd ,600 - Axis Equity Tata Steel Ltd ,320 - (ii) Outstanding options contract positions as at March 31, 2010 Scheme name Scrip name Number of units outstanding (Short) Total premium paid/ (received) March 31, 2010 Gain/(loss) on option outstanding Net option premium paid/(received) Axis Equity ICICI Bank Ltd. 50,050 (1,557) 163 (1,394) 15. NET ASSET VALUE Rupees Plans Axis Equity Axis Equity Axis Tax Saver Axis Tax Saver Axis Midcap Axis Triple Advantage March 31, 2010 March 31, 2010 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Face Value Rs. 10 Growth Option Dividend Option The net asset value of the Scheme s units are determined separately for units issued under the plans/options after including the respective unit capital and reserves and surplus. The net asset value disclosed above represents the computed NAV as on, and not the last declared NAV. 16. CONTINGENT LIABILITY Contingent liabilities as on : Nil (Previous year - Nil). 17. PRIOR PERIOD COMPARATIVES As these are the first financial statements of Axis Midcap and Axis Triple Advantage since the date of launch, there are no prior period comparatives. The prior period figures for Axis Equity and Axis Tax Saver are for a period of less than one year and hence are not comparable the current year. Prior year figures have been reclassified and regrouped, wherever applicable, conform current year s presentation. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments Mumbai Date: July 4, 2011 R. Sivakumar Head-Fixed Income Pankaj Murarka Manager-Equity Ninad Deshpande Manager-Fixed Income 40

43 18. SUPPLEMENTARY INVESTMENT PORTFOLIO INFORMATION AND INDUSTRY WISE CLASSIFICATION Schedules Details of investment portfolio and industry wise classification of the Scheme s investments in each category of investments at are presented below. The industry and company exposures are stated as a percentage of the Scheme s net assets. Axis Equity Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category DEBENTURES AND BONDS Privately placed / unlisted debentures and bonds PHARMACEUTICALS 240,000 1, % Dr. Reddy's Laboraries Ltd. * 240,000 1, TOTAL 240,000 1, EQUITY SHARES AUTO 320, , Mahindra & Mahindra Ltd. 250, , Maruti Suzuki India Ltd. 70,000 88, BANKS 870,000 1,400, Axis Bank Ltd. 20,000 28, Bank of Baroda 70,000 67, HDFC Bank Ltd. 200, , ICICI Bank Ltd. 400, , Punjab National Bank 70,000 84, State Bank of India 110, , CONSTRUCTION PROJECT 200, , Larsen & Toubro Ltd. 200, , CONSUMER DURABLES 200,000 53, Whirlpool of India Ltd. 200,000 53, CONSUMER NON DURABLES 3,323, , Asian Paints Ltd. 18,539 46, Emami Ltd. 125,000 50, Glaxosmithkline Consumer Healthcare Ltd. 50, , ITC Ltd. 2,400, , Jubilant Foodworks Ltd. 140,000 75, Jyothy Laboraries Ltd. 550, , Titan Industries Ltd. 40, , FERROUS METALS 525, , Jindal Steel & Power Ltd. 225, , Tata Steel Ltd. 300, , FINANCE 768, , Housing Development Finance Corporation Ltd. 600, , A K Capital Services Ltd. 168,051 71, GAS 947, , GAIL (India) Ltd. 325, , Petronet LNG Ltd. 622,240 75, INDUSTRIAL CAPITAL GOODS 612,688 43, Praj Industries Ltd. 612,688 43, INDUSTRIAL PRODUCTS 200, , Cummins India Ltd. 200, , MEDIA & ENTERTAINMENT 2,229, , DQ Entertainment International Ltd. 2,229, , MINERALS/MINING 700, , Coal India Ltd. 700, , NON - FERROUS METALS 850, , Hindalco Industries Ltd. 700, , Sterlite Industries Ltd. 150,000 26, OIL 700, , Oil & Natural Gas Corporation Ltd. 700, , PETROLEUM PRODUCTS 380, , Reliance Industries Ltd. 380, , PHARMACEUTICALS 688, , Cadila Healthcare Ltd. 100,000 78, Dr. Reddy's Laboraries Ltd. 40,000 65, Lupin Ltd. 200,000 83, Natco Pharma Ltd. 98,617 27, Sun Pharmaceutical Industries Ltd. 250, , SOFTWARE 565,000 1,059, Infosys Technologies Ltd. 190, , Tata Consultancy Services Ltd. 375, ,

44 Schedules Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category TELECOM - SERVICES 200,000 71, Bharti Airtel Ltd. 200,000 71, TOTAL 14,279,352 6,928, CERTIFICATE OF DEPOSITS BANKS 4, , Canara Bank * 2, , State Bank of Patiala * 100 9, State Bank of Travancore * 2, , TOTAL 4, , FIXED DEPOSITS 90,000,000 90, % Axis Bank Ltd. (03/02/2012) 90,000,000 90, ,000,000 90, OTHER CURRENT ASSETS 368, TOTAL ASSETS 7,800, LESS: CURRENT LIABILITIES 207, NET ASSETS 7,592, * Non traded / thinly traded investments Axis Tax Saver Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category EQUITY SHARES AUTO 34,000 26, Mahindra & Mahindra Ltd. 30,000 21, Maruti Suzuki India Ltd. 4,000 5, AUTO ANCILLARIES 40,000 8, Motherson Sumi Systems Ltd. 40,000 8, BANKS 113, , Axis Bank Ltd. 10,000 14, Bank of Baroda 15,000 14, HDFC Bank Ltd. 23,000 53, ICICI Bank Ltd. 45,000 50, Punjab National Bank 8,000 9, State Bank of India 12,000 33, CONSTRUCTION PROJECT 25,000 41, Larsen & Toubro Ltd. 25,000 41, CONSUMER NON DURABLES 435, , Agro Tech Foods Ltd. 36,203 13, Asian Paints Ltd. 7,000 17, Bata India Ltd. 25,000 9, Emami Ltd. 25,000 10, Glaxosmithkline Consumer Healthcare Ltd. 3,000 6, ITC Ltd. 250,000 45, Jubilant Foodworks Ltd. 15,000 8, Jyothy Laboraries Ltd. 50,000 11, Titan Industries Ltd. 2,000 7, TTK Prestige Ltd. 2,546 5, Zydus Wellness Ltd. 20,000 11, FERROUS METALS Jindal Steel & Power Ltd. 20,000 13, Tata Steel Ltd. 30,000 18, FINANCE 210,000 80, Dewan Housing Finance Corporation Ltd. 30,000 8, Housing Development Finance Corporation Ltd. 65,000 45, LIC Housing Finance Ltd. 75,000 16, Rural Electrification Corporation Ltd. 40,000 10, GAS GAIL (India) Ltd. 25,000 11, INDUSTRIAL CAPITAL GOODS Praj Industries Ltd. 80,000 5, Thermax India Ltd. 10,000 6, INDUSTRIAL PRODUCTS 20,000 13, Cummins India Ltd. 20,000 13, MEDIA & ENTERTAINMENT 56,383 3, DQ Entertainment International Ltd. 56,383 3, MINERALS/MINING 60,000 20, Coal India Ltd. 60,000 20,

45 Schedules Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category PESTICIDES 7,005 4, PI Industries Ltd. 7,005 4, NON - FERROUS METALS Hindalco Industries Ltd. 45,000 9, Hindustan Zinc Ltd. 50,000 6, OIL 70,000 20, Oil & Natural Gas Corporation Ltd. 70,000 20, PETROLEUM PRODUCTS 40,000 41, Reliance Industries Ltd. 40,000 41, PHARMACEUTICALS 77,000 34, Cadila Healthcare Ltd. 12,000 9, Cipla Ltd. 25,000 8, Lupin Ltd. 20,000 8, Sun Pharmaceutical Industries Ltd. 20,000 8, SOFTWARE Infosys Technologies Ltd. 21,000 68, Tata Consultancy Services Ltd. 45,000 53, TEXTILE PRODUCTS 38,703 9, Lovable Lingerie Ltd. 38,703 9, TOTAL 1,652, , CERTIFICATE OF DEPOSITS BANKS 1, , Punjab National Bank * 1, , TOTAL 1, , OTHER CURRENT ASSETS 67, TOTAL ASSETS 1,024, LESS: CURRENT LIABILITIES 6, NET ASSETS 1,018, * Non traded / thinly traded investments Axis Midcap Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category EQUITY SHARES AUTO 40,551 35, Eicher Mors Ltd. 10,551 14, Tata Mors Ltd. 30,000 20, AUTO ANCILLARIES 297,164 54, Amara Raja Batteries Ltd. 128,609 24, Exide Industries Ltd. 85,000 12, Motherson Sumi Systems Ltd. 83,555 17, BANKS 465, , Federal Bank Ltd. 30,000 12, Indian Bank 150,000 34, Indusind Bank Ltd. 85,000 22, Punjab & Sind Bank Ltd. 100,000 10, Yes Bank Ltd. 100,000 30, CONSTRUCTION 256,905 32, Sadbhav Engineering Ltd. 103,076 12, Ashiana Housing Ltd. 153,829 20, CONSTRUCTION PROJECT 110,000 20, Voltas Ltd. 110,000 20, CONSUMER NON DURABLES 631,416 75, Agro Tech Foods Ltd. 50,000 18, Jyothy Laboraries Ltd. 138,531 30, Marico Ltd. 23,718 3, Navneet Publications (India) Ltd. 419,167 23, FERROUS METALS 15,000 9, Tata Steel Ltd. 15,000 9, FERTILISERS 50,000 17, Tata Chemicals Ltd. 50,000 17, FINANCE 198,373 47, Dewan Housing Finance Corporation Ltd. 137,502 36, LIC Housing Finance Ltd. 25,000 5, Motilal Oswal Financial Serv Ltd. 35,871 4, GAS 250,000 48, Indraprastha Gas Ltd. 100,000 30, Petronet LNG Ltd. 150,000 18,

46 Schedules Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category INDUSTRIAL CAPITAL GOODS 55,000 37, BEML Ltd. 55,000 37, INDUSTRIAL PRODUCTS 50,000 17, Bharat Forge Ltd. 50,000 17, MEDIA & ENTERTAINMENT 150,000 10, Dish TV India Ltd. 150,000 10, PETROLEUM PRODUCTS 30,000 10, Hindustan Petroleum Corporation Ltd. 30,000 10, SOFTWARE 152, , Career Point Infosystems Ltd. 32,000 10, Infosys Technologies Ltd. 10,000 32, Tata Consultancy Services Ltd. 30,000 35, Wipro Ltd. 80,000 38, TEXTILE PRODUCTS 40,000 9, Lovable Lingerie Ltd. 40,000 9, TRANSPORTATION 590,324 49, G. E. Shipping 55,324 14, Jet Airways (India) Ltd. 35,000 15, Spicejet Ltd. 500,000 19, TOTAL 3,381, , CERTIFICATES OF DEPOSIT BANKS 9, , Canara Bank * 2, , State Bank of Patiala * 2, , State Bank of Travancore * 2, , Indian Bank * , UCO Bank * , United Bank of India Ltd. * 1,000 99, TOTAL 9, , OTHER CURRENT ASSETS 12, TOTAL ASSETS 1,683, LESS: CURRENT LIABILITIES 36, NET ASSETS 1,646, * Non traded / thinly traded investments Axis Triple Advantage Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category DEBENTURES AND BONDS Privately placed / unlisted debentures and bonds FINANCE , % LIC Housing Finance Ltd. * , Listed debentures and bonds FINANCE , % Housing Development Finance Corporation Ltd. * , % Housing Development Finance Corporation Ltd. * , OIL , % Cairn India Ltd , TOTAL , EQUITY SHARES AUTO 75,000 60, Mahindra & Mahindra Ltd. 60,000 42, Maruti Suzuki India Ltd. 15,000 18, BANKS 235, , Axis Bank Ltd. 25,000 35, Bank of Baroda 10,000 9, HDFC Bank Ltd. 50, , ICICI Bank Ltd. 100, , Punjab National Bank 20,000 24, State Bank of India 30,000 82, CONSTRUCTION PROJECT 55,000 90, Larsen & Toubro Ltd. 55,000 90, CONSUMER NON DURABLES 825, , Hindustan Unilever Ltd. 110,000 31, ITC Ltd. 600, , Jyothy Laboraries Ltd. 110,925 24, Titan Industries Ltd. 5,000 19,

47 Schedules Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category FERROUS METALS 165,000 83, Jindal Steel & Power Ltd. 40,000 27, Steel Authority of India Ltd. 50,000 8, Tata Steel Ltd. 75,000 46, FINANCE 233, , Dewan Housing Finance Corporation Ltd. 60,376 16, Housing Development Finance Corporation Ltd. 150, , A K Capital Services Ltd. 22,690 9, GAS 270,000 56, GAIL (India) Ltd. 70,000 32, Petronet LNG Ltd. 200,000 24, INDUSTRIAL CAPITAL GOODS 100,000 7, Praj Industries Ltd. 100,000 7, INDUSTRIAL PRODUCTS 20,000 13, Cummins India Ltd. 20,000 13, MEDIA & ENTERTAINMENT 310,000 21, DQ Entertainment International Ltd. 250,000 14, Zee Entertainment Enterprises Ltd. 60,000 7, MINERALS/MINING 160,000 55, Coal India Ltd. 160,000 55, NON - FERROUS METALS 125,000 26, Hindalco Industries Ltd. 125,000 26, OIL 160,000 46, Oil & Natural Gas Corporation Ltd. 160,000 46, PETROLEUM PRODUCTS 140, , Bharat Petroleum Corporation Ltd. 20,000 12, Hindustan Petroleum Corporation Ltd. 20,000 7, Reliance Industries Ltd. 100, , PHARMACEUTICALS 145,458 60, Cadila Healthcare Ltd. 5,458 4, Cipla Ltd. 40,000 12, Lupin Ltd. 50,000 20, Sun Pharmaceutical Industries Ltd. 50,000 22, SOFTWARE 175, , Infosys Technologies Ltd. 45, , Tata Consultancy Services Ltd. 90, , Wipro Ltd. 40,000 19, TELECOM - SERVICES 120,000 42, Bharti Airtel Ltd. 120,000 42, TOTAL 3,314,449 1,657, MUTUAL FUND UNITS Exchange Traded s 598,204 1,235, Axis Gold ETF 595,504 1,230, Gold Benchmark Exchange Traded Scheme (Gold BeES) 2,700 5, TOTAL 598,204 1,235, CERTIFICATES OF DEPOSIT BANKS 16,590 1,557, Canara Bank * 3, , ICICI Bank Ltd. * , IDBI Bank Ltd. * 3, , Indian Bank * 94 8, Indian Overseas Bank * , Punjab National Bank * , State Bank of Hyderabad * 1,044 97, State Bank of India * 2, , State Bank of Travancore * 3, , TOTAL 16,590 1,557, FIXED DEPOSITS BANKS 100,000, , % Axis Bank Ltd. (03/03/2012) 100,000, , TOTAL 100,000, , OTHER CURRENT ASSETS 180, TOTAL ASSETS 5,229, LESS: CURRENT LIABILITIES 57, NET ASSETS 5,172, * Non traded / thinly traded investments 45

48 Attachment 2 AXIS EQUITY FUND Derivative Disclosure A. Hedging Positions through Futures as on Underlying Long / Short Futures Price when purchased Current price of the contract Margin maintained in Rs. Lakhs NIL NIL NIL NIL NIL Total %age of existing assets hedged through futures : NIL For the half year ended on following are the details of hedging transactions through futures which have been squared off/expired: Total Number of contracts where futures were bought : 19,860 Total Number of contracts where futures were sold : 20,340 Gross Notional Value of contracts where futures were bought : (Rs. in 000's) 5,978,286 Gross Notional Value of contracts where futures were sold : (Rs. in 000's) 6,009,636 Net Profit/(Loss) value on all contracts combined : (Rs. in 000's) (120,906) B. Other than Hedging Positions through Futures as on Underlying Long / Short Futures Price when purchased (Rs) Current price of the contract (Rs) Margin maintained (Rs. Lakhs) NIL NIL NIL NIL NIL Total exposure due futures (non hedging positions) as a %age of net assets : NIL For the half year ended on following are the details of non-hedging transactions through futures which have been squared off/expired: Total Number of contracts where futures were bought : 2,291 Total Number of contracts where futures were sold : 2,491 Gross Notional Value of contracts where futures were bought : (Rs. in 000's) 752,175 Gross Notional Value of contracts where futures were sold : (Rs. in 000's) 752,822 Net Profit/(Loss) value on all contracts combined : (Rs. in 000's) 646 C. Hedging Positions through Put Options as on Underlying Number of Contracts Option Price when purchased Current Option Price NIL NIL NIL NIL Total % age of existing assets hedged through put options - NIL For the half year ended on following are the details of hedging transactions through options which have been exercised/expired : Total Number of contracts entered in : 30,490 Gross National value of contracts : (Rs. in 000's) 107,240 Net Profit/(Loss) on all contracts (premium paid treated as loss) : (Rs. in 000's) (28,638) D. Other than Hedging Positions through Options as on Underlying Call / put Number of contracts Option Price when purchased Current Price NIL Total Exposure through options as a %age of net assets : NIL For the half year ended on following are the details of non-hedging transactions through options which have been exercised/expired : Total Number of contracts entered in : NIL Gross National Value of contracts : NIL Net Profit/Loss on all contracts (premium paid treated as loss) : NIL E. Hedging Positions through swaps as on - NIL 46

49 AXIS TRIPLE ADVANTAGE FUND Derivative Disclosure A. Hedging Positions through Futures as on Underlying Long / Short Futures Price when purchased Current price of the contract Margin maintained in Rs. Lakhs NIL NIL NIL NIL NIL Total %age of existing assets hedged through futures : NIL For the half year ended on following are the details of hedging transactions through futures which have been squared off/expired: Total Number of contracts where futures were bought : 3,500 Total Number of contracts where futures were sold : 3,500 Gross Notional Value of contracts where futures were bought : (Rs. in 000 s) 1,008,336 Gross Notional Value of contracts where futures were sold : (Rs. in 000 s) 1,005,743 Net Profit/(Loss) value on all contracts combined : (Rs. in 000 s) (2,594) B. Other than Hedging Positions through Futures as on Underlying Long / Short Futures Price when purchased (Rs) Current price of the contract (Rs) Margin maintained (Rs. Lakhs) NIL NIL NIL NIL NIL Total exposure due futures (non hedging positions) as a %age of net assets : NIL For the half year ended on following are the details of non-hedging transactions through futures which have been squared off/expired: Total Number of contracts where futures were bought : NIL Total Number of contracts where futures were sold : NIL Gross Notional Value of contracts where futures were bought : NIL Gross Notional Value of contracts where futures were sold : NIL Net Profit/Loss value on all contracts combined : NIL C. Hedging Positions through Put Options as on Underlying Number of Contracts Option Price when purchased Current Option Price Current Option Price NIL NIL NIL NIL NIL Total % age of existing assets hedged through put options - NIL For the half year ended on following are the details of hedging transactions through options which have been exercised/expired : Total Number of contracts entered in : NIL Gross National value of contracts : NIL Net Profit/Loss on all contracts (premium paid treated as loss) : NIL D. Other than Hedging Positions through Options as on Underlying Call / put Number of contracts Option Price when purchased Current Price NIL NIL NIL NIL NIL Total Exposure through options as a %age of net assets : NIL For the half year ended on following are the details of non-hedging transactions through options which have been exercised/expired : Total Number of contracts entered in : NIL Gross National Value of contracts : NIL Net Profit/Loss on all contracts (premium paid treated as loss) : NIL E. Hedging Positions through swaps as on - NIL 47

50 Audirs Report To the Trustee of AXIS MUTUAL FUND 1. We have audited the attached balance sheet of the Axis Mutual Axis Gold ETF ( the Scheme ) as at 31 March 2011 and also the revenue account and cash flow statement for the period from 10 November March 2011 ( the Period ) annexed there. These financial statements are the responsibility of the management of Axis Asset Management Company Limited, the Schemes asset manager. Our responsibility is express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion 3. We report that: i. We have obtained all the information and explanations, which the best of our knowledge and belief were necessary for the purposes of our audit. ii. The balance sheet, revenue account and cash flow statement, dealt with by this report are in agreement with the books of account. iii. In our opinion, the balance sheet and revenue account dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule the Securities and Exchange Board of India (Mutual s) Regulations, 1996 ( the SEBI Regulations ). iv. In our opinion, and the best of our information and according the explanations given us, the said financial statements give the information required by the SEBI Regulations as applicable, and give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the balance sheet, of the state of affairs of the Schemes as at 31 March 2011; b) in the case of the revenue account, of the deficit for the Period; and c) in the case of the cash flow statement, of the cash flows for the Period. For S. R. Batliboi & Co. Firm Registration No E Chartered Accountants per Surekha Gracias Partner Membership No: Mumbai, 4 July 2011 Balance Sheet (All amounts in thousands of Rupees) Axis Gold ETF Schedule SOURCES OF FUNDS Unit capital 2(b) & 3 79,307 Reserves and surplus 2(b) & 4 1,564,684 Current liabilities 5 1,709 1,645,700 APPLICATION OF FUNDS Investments 2(c), 6 & 17 1,625,851 Other current assets 7 19,849 1,645,700 The accompanying schedules are an integral part of this balance sheet. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments Mumbai Date: July 4, 2011 R. Sivakumar Head-Fixed Income Anurag Mittal Manager-Gold ETF Ninad Deshpande Manager-Fixed Income 48

51 Revenue Account (All amounts in thousands of Rupees) Axis Gold ETF Schedule November 10, 2010 INCOME Interest 2(d) & Profit on sale of Gold, net 2(d) 5,181 Total 5,878 EXPENSES AND LOSSES Management fee 9 3,465 Trusteeship fee 9 13 Cusdian service charges 2,659 Registrar service charges 290 Commission distriburs 33 Audit fee 169 Marketing expenses 318 Listing fee 153 Other operating expenses 450 Less: Expenses reimbursed/ be reimbursed by AMC (622) Total 6,928 Surplus for the period (1,050) Equalisation (debit) / credit 2(e) (8,767) Surplus transferred the balance sheet 4 (9,817) The accompanying schedules are an integral part of this revenue account. As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments Mumbai Date: July 4, 2011 R. Sivakumar Head-Fixed Income Anurag Mittal Manager-Gold ETF Ninad Deshpande Manager-Fixed Income Cash Flow Statement (All amounts in thousands of Rupees) Axis Gold ETF November 10, 2010 A. Cashflow from operating activity Net Surplus for the period (1,050) Adjustments for:- Investments at cost (1,574,704) Net current assets (16,370) Net current liabilities 1,709 Net cash used in operations ( A ) (1,590,415) B Cashflow from financing activity Movement in unit capital 79,307 Movement in unit premium reserve 1,514,587 Net cash generated from financing activities ( B ) 1,593,894 Cash and Cash Equivalents as at the close of the period (A+B) 3,479 Component of cash and cash equivalents Balances with banks in current accounts 101 Collateralised lending 3,378 As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments Mumbai Date: July 4, 2011 R. Sivakumar Head-Fixed Income Anurag Mittal Manager-Gold ETF Ninad Deshpande Manager-Fixed Income 49

52 SCHEDULES TO THE FINANCIAL STATEMENTS FOR THE YEAR/PERIOD ENDED MARCH 31, 2011 (All amounts in thousands of Rupees unless specified otherwise) Schedules 1. BACKGROUND Axis Bank Limited is the sponsor of Axis Mutual ( The ) In accordance with the Securities and Exchange Board of India ( SEBI ) (Mutual s) Regulations, 1996 ( the SEBI Regulations ), the Board of Direcrs of Axis Mutual Trustee Limited ( the Trustee ) has appointed Axis Asset Management Company Limited ( the AMC ) manage the s affairs and operate its Schemes. The key features of the schemes of Axis Mutual are as below: Scheme Name Type of Scheme Investment objective of the Scheme NFO Open - NFO Close Axis Gold ETF Open ended gold exchange traded fund The investment objective of the Scheme is generate returns that are in line with the performance of gold. Ocber 20, 2010 November 3, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are prepared on the accrual basis of accounting, under the hisrical cost convention, as modified for investments, which are marked-market. The significant accounting policies, which are in accordance with the SEBI Regulations and have been approved by the Boards of Direcrs of the AMC and the Trustee, are stated below. (a) Determination of net asset value ( NAV ) The net asset value is determined considering the daily income earned, including realised profit or loss and unrealised gain or loss in the value of Gold, and expenses incurred. (b) Unit capital Unit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactions relating the period ended on that date. Upon issue and redemption of units, the net premium or discount the face value of units is adjusted against the unit premium reserve. (c) Investments Accounting for investments Purchase and sale of Gold is recorded on the date of the transaction, at cost and sale price respectively, after considering adjustments on account of value of portfolio deposit, if any. The Value Added Tax (VAT) paid at the time of purchase of Gold is accounted in the books as VAT receivable (input credit), and the liability arising at the time of sale of Gold (i.e. VAT payable) is accounted as payable and adjusted against the receivable, if any. (d) (e) (f) Valuation of investments Investment in gold is valued at the AM fixing price of gold quoted on the London Bullion Market Association [LBMA] declared in US Dollars as increased by premium and fixing charges, by converting it in Indian Rupees at the RBI reference rate, as increased by cusm duty for import of gold and octroi charges as applicable, in accordance with the guidelines issued by SEBI. Revenue recognition Interest income is recognised on an accrual basis. Profit or loss on sale of Gold is determined on the basis of the weighted average cost method. Equalisation account When units are issued or redeemed, the distributable surplus (excluding unit premium reserve), as on the date of the transaction is determined. Based on the number of units outstanding on the transaction date, the distributable surplus (excluding unit premium reserve) associated with each unit is computed. The per unit amount so determined is credited / debited the equalisation account on issue / redemption of each unit respectively. The balance in equalisation account is transferred revenue account at the year-end without affecting the net income of the Scheme. Cash and cash equivalent Cash and cash equivalents include balances with banks in current accounts, deposits placed with scheduled banks (with an original maturity of up three months) and collateralised lending (including reverse repurchase transactions). 3. Unit Capital Axis Gold ETF Face Value Rs. 100 Quantity Amount Issued - new fund offer 335, ,507 - during the period 599, ,900 Redeemed during the period 141, ,100 Outstanding, end of period 793, ,307 Axis Gold ETF 4. RESERVES AND SURPLUS Unit premium reserve Net premium/discount on issue/redemption of units 1,514,587 Transferred () / from equalisation account 8,767 Balance, end of period 1,523,354 Unrealised appreciation reserve Unrealised appreciation in value of investments 51,147 Balance, end of period 51,147 Retained surplus Surplus transferred from revenue account (9,817) Balance, end of period (9,817) Total reserves 1,564, CURRENT LIABILITIES Amount due AMC for management fees 837 Commission distriburs payable 1 Cusdy Fees Payable 594 Other current liabilities 277 1,709 50

53 Schedules Axis Gold ETF 6. INVESTMENTS Gold 1,625,851 1,625,851 (i) All the investments are held in the name of the Scheme, as per clause 7 of the Seventh Schedule under Regulation 44(1) of SEBI (Mutual s) Regulations, (ii) Aggregate appreciation and depreciation in the value of investments are as follows: Gold - appreciation 51,147 - depreciation - (iii) The aggregate value of investments acquired and sold/redeemed/expired during the period and these amounts as a percentage of average daily net assets are as follows: Purchases - Gold - amount 1,859,081 - as a percentage of average daily net assets % Sales - Gold - amount 289,559 - as a percentage of average daily net assets 16.26% (iv) Aggregate fair value of non traded investments as on valued in good faith - 7. OTHER CURRENT ASSETS Balances with banks in current accounts (including margin balance) 101 Amount due from AMC 622 Value added tax receivable on gold 15,720 Collateralised lending 3,378 Other current assets 28 19,849 November 10, INTEREST Money market instruments MANAGEMENT AND TRUSTEESHIP FEE The Scheme pays fees for investment management services (excluding service tax) under an agreement with the AMC, which provides for computation of such fee as a percentage of Scheme s average daily net assets, after excluding the net asset value of the investments by the AMC in the scheme, the net asset value of the investments made in other schemes and fixed deposits as applicable. During the period ended, Axis Gold ETF has paid management fee (excluding of service tax) at an average annualised rate of 0.50 percent. The Schemes pay fees for Trusteeship services under an agreement with the Trustee, aggregating Rs. 100,000/- per month (excluding service tax),subject the ceiling of 0.10% per annum which is apportioned all the Schemes on the basis of their monthly average net assets. 10. INCOME AND EXPENDITURE The tal income and expenditure and these amounts as a percentage of the scheme s average daily net assets on an annualised basis are provided below: November 10, 2010 Income - amount 5,878 - as a percentage of average daily net assets 0.85% Expenditure (excluding provision for net unrealised loss and realised loss on sale of investments) - amount 6,928 - as a percentage of average daily net assets 1.00% 51

54 11. RELATED PARTY TRANSACTIONS (i) Axis Gold ETF has entered in transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on Related Party Disclosures issued by the Institute of Chartered Accountants of India is provided below; (a) (b) Related party relationships Name Axis Bank Limited Axis Mutual Trustee Limited Axis Asset Management Company Limited The Central Deposiry Services (India) Ltd Schemes of the, under common control of the Sponsor Axis Equity Axis Tax Saver Axis Liquid Axis Treasury Advantage Axis Short Term Plan - Series 1 (384 days) Plan-Series 3 (3 Months) Plan - Series 4(3 Months) Plan-Series 11 (371 Days) Plan - Series 12 (367 days ) Plan - Series 13 (370 days ) Axis Triple Advantage Axis Income Saver Axis Midcap Axis Gold ETF Transactions covered by Accounting Standard-18 Description of relationship Sponsor of the Trustee of the The Scheme s asset manager Associate Name of Related Party Nature of transactions Period ended Balance as at Axis Mutual Trustee Limited Fees for trusteeship services 13 2 Axis Asset Management Company Limited Fees for investment management services 3, Axis Asset Management Company Limited Receivable for other expenses Axis Bank Limited Bank charges 6 # - # Amount less than Rs. 0.5 thousand (ii) Transactions covered by Regulation 25(8) of the SEBI Regulation with the sponsor or associate of the sponsor: Schedules Axis Gold ETF The Central Deposiry Services (India) Ltd Folio maintenance and corporate action charges Investments made during the period in the sponsor company and its group companies at cost is Nil. 13. NET ASSET VALUE Rupees Plans Axis Gold ETF Face Value Rs. 100 Axis Gold ETF 2,

55 14. CONTINGENT LIABILITY Contingent liabilities as on : NIL 15. SEGMENT REPORTING The scheme operates in one segment only viz. generate returns that are in line with the performance of gold. 16. PRIOR PERIOD COMPARATIVES As these are the first financial statements of the scheme since the date of launch, there are no prior period comparatives. Schedules As per our report of even date. For S.R. Batliboi & Co. Firm Registration No E Chartered Accountants For and on behalf of Axis Mutual Trustee Limited For and on behalf of Axis Asset Management Company Limited per Surekha Gracias Partner Membership No Uday M. Chitale Direcr B. Gopalakrishnan Direcr Rajiv Anand Managing Direcr & CEO U.R. Bhat Direcr Chandresh Nigam Head-Investments Mumbai Date: July 4, 2011 R. Sivakumar Head-Fixed Income Anurag Mittal Manager-Gold ETF Ninad Deshpande Manager-Fixed Income 17. SUPPLEMENTARY INVESTMENT PORTFOLIO INFORMATION AND INDUSTRY WISE CLASSIFICATION Details of investment portfolio and industry wise classification of the Scheme s investments in each category of investments at are presented below. The industry and company exposures are stated as a percentage of the Scheme s net assets Axis Gold ETF Industry and Company Particulars Quantity Amount (Rs. in 000s) Percentage Net Assets Percentage Investment category GOLD MISCELLANEOUS 782 1,625, Gold 1KG Bar (995 purity) 782 1,625, TOTAL 782 1,625, OTHER CURRENT ASSETS 19, TOTAL ASSETS 1,645, LESS: CURRENT LIABILITIES 1, NET ASSETS 1,643, * Non traded / thinly traded investments 53

56 Attachment 1 Disclosure under Regulation 25 (11) of SEBI (Mutual ) Regulations, 1996 Investments made by the schemes of Axis Mutual in Companies or their subsidiaries that have invested more than 5% of the net assets of any scheme during the year ended Name of the Company Name of the Scheme invested by the Company Investments made by the Schemes of Axis Mutual in the Company or its subsidiary Aggregate cost of acquisition during the current and previous period (Rupees in Lakhs) Outstanding as on (Rupees in Lakhs) ACC LTD AXIS FIXED TERM PLAN-SERIES 4 (3 MONTHS) AXIS EQUITY FUND 4, ALLAHABAD BANK AXIS LIQUID FUND AXIS EQUITY FUND 2, AXIS TREASURY ADVANTAGE FUND AXIS FIXED TERM PLAN - SERIES 1 1, AXIS FIXED TERM PLAN-SERIES 4-3 MONTHS AXIS INCOME SAVER 2, AXIS LIQUID FUND 106, AXIS SHORT TERM FUND 10, , AXIS TREASURY ADVANTAGE FUND 62, , ANDHRA BANK LTD AXIS LIQUID FUND AXIS EQUITY FUND 2, AXIS TREASURY ADVANTAGE FUND AXIS INCOME SAVER 12, AXIS LIQUID FUND 43, , AXIS SHORT TERM FUND 9, AXIS TREASURY ADVANTAGE FUND 47, AXIS TRIPLE ADVANTAGE FUND 2, AXIS BANK LIMITED AXIS LIQUID FUND AXIS EQUITY FUND 10, , AXIS TREASURY ADVANTAGE FUND AXIS TAX SAVER FUND AXIS SHORT TERM FUND AXIS TRIPLE ADVANTAGE FUND 3, , BAJAJ FINANCE LTD. AXIS LIQUID FUND AXIS EQUITY FUND 71, AXIS LIQUID FUND 68, AXIS SHORT TERM FUND 5, AXIS TREASURY ADVANTAGE FUND 217, BANK OF BARODA AXIS LIQUID FUND AXIS EQUITY FUND 5, AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS ) 2, , AXIS INCOME SAVER 8, , AXIS LIQUID FUND 30, AXIS SHORT TERM FUND 8, AXIS TAX SAVER FUND AXIS TREASURY ADVANTAGE FUND 33, AXIS TRIPLE ADVANTAGE FUND 1, BANK OF INDIA AXIS LIQUID FUND AXIS EQUITY FUND 9, AXIS TREASURY ADVANTAGE FUND AXIS FIXED TERM PLAN - SERIES AXIS INCOME SAVER 10, , AXIS LIQUID FUND 52, , AXIS SHORT TERM FUND 13, AXIS TREASURY ADVANTAGE FUND 48, AXIS TRIPLE ADVANTAGE FUND BANK OF MAHARASHTRA. AXIS LIQUID FUND AXIS EQUITY FUND 2, AXIS FIXED TERM PLAN - SERIES 1 2, AXIS LIQUID FUND 46, , AXIS SHORT TERM FUND 5, , AXIS TREASURY ADVANTAGE FUND 18, BHARTI AIRTEL LTD. AXIS LIQUID FUND AXIS EQUITY FUND 3, AXIS TREASURY ADVANTAGE FUND AXIS INCOME SAVER AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND

57 Name of the Company Name of the Scheme invested by the Company Investments made by the Schemes of Axis Mutual in the Company or its subsidiary Aggregate cost of acquisition during the current and previous period (Rupees in Lakhs) Outstanding as on (Rupees in Lakhs) CENTRAL BANK OF INDIA AXIS LIQUID FUND AXIS EQUITY FUND 6, AXIS TREASURY ADVANTAGE FUND AXIS FIXED TERM PLAN - SERIES AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS ) 4, , AXIS FIXED TERM PLAN - SERIES AXIS INCOME SAVER 12, AXIS LIQUID FUND 149, , AXIS SHORT TERM FUND 9, , AXIS TREASURY ADVANTAGE FUND 97, , AXIS TRIPLE ADVANTAGE FUND 2, CIPLA LTD. AXIS LIQUID FUND AXIS EQUITY FUND 2, AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND CORPORATION BANK AXIS LIQUID FUND AXIS EQUITY FUND 31, AXIS TREASURY ADVANTAGE FUND AXIS INCOME SAVER 26, , AXIS LIQUID FUND 76, AXIS MIDCAP FUND 1, AXIS SHORT TERM FUND 7, AXIS TAX SAVER FUND 1, AXIS TREASURY ADVANTAGE FUND 33, AXIS TRIPLE ADVANTAGE FUND 19, DABUR INDIA LIMITED AXIS FIXED TERM PLAN-SERIES 3 (3 MONTHS) AXIS EQUITY FUND DENA BANK AXIS LIQUID FUND AXIS LIQUID FUND 23, AXIS SHORT TERM FUND 3, AXIS TREASURY ADVANTAGE FUND 5, , DEWAN HOUSING FINANCE AXIS LIQUID FUND AXIS EQUITY FUND 1, CORPN LTD AXIS INCOME SAVER AXIS MIDCAP FUND AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND DLF LIMITED AXIS LIQUID FUND AXIS INCOME SAVER AXIS TREASURY ADVANTAGE FUND ECL FINANCE LIMITED AXIS LIQUID FUND AXIS EQUITY FUND 11, AXIS FIXED TERM PLAN - SERIES 1 2, , AXIS FIXED TERM PLAN - SERIES 3 2, AXIS FIXED TERM PLAN-SERIES 4-3 MONTHS AXIS LIQUID FUND 497, AXIS TREASURY ADVANTAGE FUND 130, EICHER MOTORS LTD. AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS) AXIS MIDCAP FUND EXIM BANK AXIS LIQUID FUND AXIS LIQUID FUND 19, AXIS TREASURY ADVANTAGE FUND 12, G. E. SHIPPING AXIS SHORT TERM FUND AXIS MIDCAP FUND HDFC BANK LTD. AXIS LIQUID FUND AXIS EQUITY FUND 6, , AXIS TREASURY ADVANTAGE FUND AXIS LIQUID FUND 38, , AXIS SHORT TERM FUND 7, , AXIS TAX SAVER FUND AXIS TREASURY ADVANTAGE FUND 25, AXIS TRIPLE ADVANTAGE FUND 1, , HERO HONDA MOTORS LTD AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) AXIS EQUITY FUND AXIS FIXED TERM PLAN-SERIES 3 (3 MONTHS) AXIS TAX SAVER FUND HINDALCO INDUSTRIES LTD. AXIS SHORT TERM FUND AXIS EQUITY FUND 1, , AXIS INCOME SAVER AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND ICICI SEC PRIMARY DEALERSHIP AXIS LIQUID FUND AXIS LIQUID FUND 2, LTD. AXIS TREASURY ADVANTAGE FUND 2,

58 Name of the Company Name of the Scheme invested by the Company Investments made by the Schemes of Axis Mutual in the Company or its subsidiary Aggregate cost of acquisition during the current and previous period (Rupees in Lakhs) Outstanding as on (Rupees in Lakhs) IDBI BANK LIMITED AXIS LIQUID FUND AXIS EQUITY FUND 8, AXIS TREASURY ADVANTAGE FUND AXIS INCOME SAVER 9, AXIS LIQUID FUND 29, , AXIS SHORT TERM FUND 3, AXIS TREASURY ADVANTAGE FUND 44, AXIS FIXED TERM PLAN - SERIES AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS ) 4, , AXIS FIXED TERM PLAN-SERIES 12 (367 DAYS) AXIS TRIPLE ADVANTAGE FUND 3, , IDFC LTD AXIS LIQUID FUND AXIS EQUITY FUND 10, AXIS TAX SAVER FUND IL&FS FINANCIAL SERVICES LTD AXIS LIQUID FUND AXIS LIQUID FUND 6, , AXIS TREASURY ADVANTAGE FUND 6, INDIA INFOLINE INVESTMENT AXIS LIQUID FUND AXIS LIQUID FUND 19, SERV LTD AXIS TREASURY ADVANTAGE FUND 7, INDIABULLS FINANCIAL AXIS LIQUID FUND AXIS INCOME SAVER SERVICES LTD AXIS LIQUID FUND 20, AXIS TREASURY ADVANTAGE FUND 85, INDUSIND BANK LTD AXIS LIQUID FUND AXIS SHORT TERM FUND AXIS TREASURY ADVANTAGE FUND AXIS TREASURY ADVANTAGE FUND 1, AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS ) 2, , AXIS MIDCAP FUND JAMMU & KASHMIR BANK AXIS LIQUID FUND AXIS LIQUID FUND 2, , LIMITED L&T FINANCE LTD AXIS LIQUID FUND AXIS INCOME SAVER AXIS LIQUID FUND 40, AXIS TREASURY ADVANTAGE FUND 38, LIC HOUSING FINANCE LTD. AXIS LIQUID FUND AXIS EQUITY FUND 2, AXIS INCOME SAVER 1, , AXIS MIDCAP FUND AXIS SHORT TERM FUND AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND 1, MAN INFRACONSTRUCTION AXIS LIQUID FUND AXIS EQUITY FUND 2, LTD AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND MARUTI SUZUKI INDIA LTD AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) AXIS EQUITY FUND 3, AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS) AXIS TAX SAVER FUND AXIS LIQUID FUND AXIS TRIPLE ADVANTAGE FUND AXIS TREASURY ADVANTAGE FUND MOTILAL OSWAL FINANCIAL AXIS LIQUID FUND AXIS EQUITY FUND 2, SERVICES LIMITED AXIS INCOME SAVER 1, AXIS LIQUID FUND 1, AXIS TREASURY ADVANTAGE FUND 6, AXIS MIDCAP FUND MOTILAL OSWAL SECURITIES AXIS LIQUID FUND AXIS LIQUID FUND 3, LTD AXIS TREASURY ADVANTAGE FUND 2, NATIONAL BANK FOR AGRI. & AXIS LIQUID FUND AXIS EQUITY FUND RURAL DEV AXIS INCOME SAVER 1, AXIS LIQUID FUND 32, AXIS SHORT TERM FUND 4, AXIS TREASURY ADVANTAGE FUND 2, ORIENT GREEN POWER CO LTD AXIS SHORT TERM FUND AXIS EQUITY FUND

59 Name of the Company ORIENTAL BANK OF COMMERCE PIRAMAL HEALTHCARE LIMITED Name of the Scheme invested by the Company Investments made by the Schemes of Axis Mutual in the Company or its subsidiary Aggregate cost of acquisition during the current and previous period (Rupees in Lakhs) Outstanding as on (Rupees in Lakhs) AXIS LIQUID FUND AXIS EQUITY FUND 4, AXIS TREASURY ADVANTAGE FUND AXIS INCOME SAVER 5, , AXIS LIQUID FUND 61, , AXIS SHORT TERM FUND 26, , AXIS TAX SAVER FUND AXIS TREASURY ADVANTAGE FUND 47, , AXIS LIQUID FUND AXIS EQUITY FUND PRAJ INDUSTRIES LIMITED AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) AXIS EQUITY FUND AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND PUNJAB NATIONAL BANK AXIS TREASURY ADVANTAGE FUND AXIS EQUITY FUND 26, AXIS FIXED TERM PLAN - SERIES 1 1, AXIS FIXED TERM PLAN-SERIES 11 (371 DAYS) AXIS FIXED TERM PLAN-SERIES 4-3 MONTHS AXIS INCOME SAVER 19, AXIS LIQUID FUND 176, , AXIS SHORT TERM FUND 13, , AXIS TAX SAVER FUND 1, , AXIS TREASURY ADVANTAGE FUND 118, AXIS TRIPLE ADVANTAGE FUND 3, , RELIANCE INDUSTRIES LTD. AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS) AXIS EQUITY FUND 8, , AXIS LIQUID FUND AXIS INCOME SAVER AXIS TREASURY ADVANTAGE FUND AXIS LIQUID FUND 14, AXIS TAX SAVER FUND AXIS TREASURY ADVANTAGE FUND 15, AXIS TRIPLE ADVANTAGE FUND , RELIGARE FINVEST LIMITED AXIS LIQUID FUND AXIS EQUITY FUND 11, AXIS FIXED TERM PLAN - SERIES 3 2, AXIS INCOME SAVER 3, AXIS LIQUID FUND 117, AXIS TREASURY ADVANTAGE FUND 84, RHC HOLDING PVT LTD AXIS LIQUID FUND AXIS LIQUID FUND 3, AXIS TREASURY ADVANTAGE FUND AXIS TREASURY ADVANTAGE FUND 6, SHAREKHAN LIMITED AXIS LIQUID FUND AXIS LIQUID FUND 2, STATE BANK OF HYDERABAD AXIS LIQUID FUND AXIS EQUITY FUND 20, AXIS FIXED TERM PLAN-SERIES 11 (371 DAYS) AXIS INCOME SAVER 7, , AXIS LIQUID FUND 19, , AXIS SHORT TERM FUND 3, AXIS TREASURY ADVANTAGE FUND 54, AXIS TRIPLE ADVANTAGE FUND 1, STATE BANK OF INDIA AXIS LIQUID FUND AXIS EQUITY FUND 8, , AXIS TREASURY ADVANTAGE FUND AXIS INCOME SAVER 3, , AXIS LIQUID FUND 41, , AXIS SHORT TERM FUND 2, AXIS TAX SAVER FUND AXIS TREASURY ADVANTAGE FUND 7, AXIS TRIPLE ADVANTAGE FUND 3, , STATE BANK OF TRAVANCORE AXIS LIQUID FUND AXIS EQUITY FUND 17, , AXIS FIXED TERM PLAN-SERIES 11 (371 DAYS) AXIS FIXED TERM PLAN-SERIES 12 (367 DAYS) AXIS INCOME SAVER 13, , AXIS LIQUID FUND 42, , AXIS MIDCAP FUND 2, , AXIS SHORT TERM FUND 19, AXIS TREASURY ADVANTAGE FUND 49, AXIS TRIPLE ADVANTAGE FUND 6, ,

60 Name of the Company Name of the Scheme invested by the Company Investments made by the Schemes of Axis Mutual in the Company or its subsidiary Aggregate cost of acquisition during the current and previous period (Rupees in Lakhs) Outstanding as on (Rupees in Lakhs) SUN PHARMACEUTICAL AXIS LIQUID FUND AXIS EQUITY FUND 1, , INDUSTRIES LTD. AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND SYNDICATE BANK AXIS LIQUID FUND AXIS LIQUID FUND 3, AXIS SHORT TERM FUND 1, AXIS TREASURY ADVANTAGE FUND 6, AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS ) 2, , AXIS INCOME SAVER 2, , AXIS LIQUID FUND 3, TATA CAPITAL LIMITED AXIS LIQUID FUND AXIS EQUITY FUND 19, AXIS FIXED TERM PLAN - SERIES 1 3, , AXIS FIXED TERM PLAN - SERIES AXIS INCOME SAVER AXIS LIQUID FUND 43, , AXIS SHORT TERM FUND 2, AXIS TREASURY ADVANTAGE FUND 197, TATA CHEMICALS LTD. AXIS SHORT TERM FUND AXIS INCOME SAVER AXIS MIDCAP FUND TATA MOTORS FINANCE AXIS LIQUID FUND AXIS EQUITY FUND 1, LIMITED AXIS INCOME SAVER 1, AXIS LIQUID FUND 17, AXIS TREASURY ADVANTAGE FUND 12, TATA STEEL LTD. AXIS LIQUID FUND AXIS EQUITY FUND 6, , AXIS INCOME SAVER AXIS MIDCAP FUND AXIS TAX SAVER FUND AXIS TRIPLE ADVANTAGE FUND UNION BANK OF INDIA AXIS LIQUID FUND AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS ) 2, , AXIS INCOME SAVER 2, AXIS LIQUID FUND 47, AXIS SHORT TERM FUND 4, AXIS TREASURY ADVANTAGE FUND 23, , UNITED BANK OF INDIA LTD. AXIS LIQUID FUND AXIS EQUITY FUND 8, AXIS TREASURY ADVANTAGE FUND AXIS FIXED TERM PLAN-SERIES 11 (371 DAYS) AXIS FIXED TERM PLAN-SERIES 12 (367 DAYS) AXIS INCOME SAVER 2, AXIS LIQUID FUND 40, , AXIS MIDCAP FUND AXIS SHORT TERM FUND 3, AXIS TAX SAVER FUND AXIS TREASURY ADVANTAGE FUND 35, , AXIS TRIPLE ADVANTAGE FUND VIJAYA BANK AXIS LIQUID FUND AXIS FIXED TERM PLAN - SERIES 13 (370 DAYS ) 2, , AXIS TREASURY ADVANTAGE FUND AXIS LIQUID FUND 5, ZEE ENTERTAINMENT ENTERPRISES LTD AXIS LIQUID FUND AXIS TRIPLE ADVANTAGE FUND All the companies transacted herewith are financially sound companies with proven track record. Moreover fund management has undertaken a detailed research in each of these companies and has sought relevant approval from the Investment Review Committee. As a result, investments in all these companies are independent investment decisions and does not relate, in any manner, their investment in the Schemes. 58

61 VOTING POLICY 1. SEBI vide its circular no. SEBI/IMD/Cir No 18/198647/2010 dated March 15, 2010 has stated that mutual funds should play an active role in ensuring better corporate governance of listed companies. This policy is drafted in pursuance of above referred circular and clarificary received from SEBI on June 23, 2011 and provides general philosophy, broad guidelines and procedures for exercising voting rights. 2. Axis Asset Management Company Limited (AMC), Investment Manager Axis Mutual ( the Mutual ), shall endeavor vote on all resolutions which may affect its unitholders interests, either by postal ballot or through attendance. 3. The AMC shall not give proxy brokers, for voting on its behalf. 4. Where the holding of the Mutual Scheme(s) is 5% or more of the paid up capital of the investee company, the AMC shall be represented by the concerned Manager or concerned analyst tracking the sck or any other Equity Manager. 5. Where the holding of the Schemes is less than 5% of the paid up capital of the Investee Company, the AMC may vote through the postal ballot method. 6. The decision regarding the voting on the resolution, i.e. whether the AMC will (i) attend/not attend, (ii) vote/abstain, (iii) if voted, for or against the resolution proposed by the Investee Company will be taken by the Manager in consultation with the Head - Investments. AMC recognizes that there may be a potential conflict of interest when it decides vote for / against Investee Company, on behalf of the Mutual Scheme(s), which is a group company of AMC or where the Investee Company has substantial investments in the Scheme(s) of the Mutual. AMC shall specifically review all voting proposals and take decisions with respect voting on such proposals in the best interest of the unit holders. 7. The actual exercise of the proxy votes in the AGMs/EGMs of the investee companies will cover the following matters and will be reported in the SEBI prescribed format: a. Corporate governance matters, including changes in the state of incorporation, merger and other corporate restructuring, and anti takeover provisions; b. Changes capital structure, including increases and decreases of capital and preferred sck issuances; c. Sck option plans and other management compensation issues; d. Social and corporate responsibility issues; e. Appointment and Removal of Direcrs; f. Any other issue that may affect the interest of the shareholders in general and interest of the unit-holders in particular. 7. Whenever there is a change in Audirs, Independent Direcrs, key management personnel of the Investee Company, the AMC shall be vigilant and make more enquiries, including asking the Investee Company provide reasons for the same. 8. Any corporate governance issue requiring support from other shareholders may be discussed with them by the AMC. 9. The Investment Review Committee of AMC will note the action taken in respect of voting in its meetings. 10. The general policies and procedures stated above for exercising the voting rights in respect of shares held by the Scheme(s) of the Mutual will be disclosed on the website of the Mutual as well as in the annual report distributed the unit holders from the financial year onwards. Date: November 30, 2010 Revised on: June 30,

62 Details of Exercise of Voting Rights In Agms/Egms Of Investee Companies During the F. Y Management Proposals Date Company Type of Meeting (AGM / EGM / Postal Ballot) Proposal March 29, 2011 Bank Of Baroda EGM Approval for equity shares preferential issue Government of India raise stake 58% March 29, 2011 Glaxosmithkline Consumer Healthcare Ltd. March 28, 2011 Punjab National Bank Ltd. EGM Approval for equity shares preferential issue Government of India raise stake 58% March 24, 2011 ZEE Entertainment Enterprises Ltd. Management Recommendation For *Vote (For / Against / Abstain) Abstain AGM General business For Abstain Postal Ballot Approval for buy-back of equity shares from open market February 24, 2011 Mphasis Ltd. AGM Appointment of 4 direcrs and approval of For Abstain sck unit plan February 21, 2011 Hindustan Zinc Ltd. Postal Ballot Approval for increasing authorized shares, For Abstain sck split and 1:1 bonus February 17, 2011 PI Industries Ltd. Postal Ballot Approval for ESOP For Abstain January 24, 2011 Oil and Natural Gas Corporation Ltd. (ONGC) Postal Ballot Approval for sub-division of equity shares and bonus issuance January 21, 2011 PI Industries Ltd. EGM Approval for slump sale of polymer division For Abstain January 20, 2011 Spicejet Ltd. Postal Ballot Approval for Article of Association post For Abstain change in promoter January 17, 2011 HCL Technologies Postal Ballot Appointment of Mr Vineet Nayar as Vice Chairman, CEO and Whole-time Direcr For Abstain January 17, 2011 TV 18 India Ltd. Postal Ballot Approval for corporate restructuring For Abstain between group companies December 22, 2010 TISCO Postal Ballot Approval for increasing authorized shares For Abstain and issuing A ordinary shares December 22, 2010 Reliance Infrastructure Ltd. AGM Appointment of 2 direcrs For Abstain December 21, 2010 IBN 18 BroadCast Ltd. CCM Approval for corporate restructuring For Abstain between group companies December 15, 2010 NATCO Pharma Ltd. EGM Approval for fund raising - Either equity or convertibles For Abstain *During the F.Y , the management proposals which were received were not adversely affecting the interest of the unitholders of the schemes and accordingly Axis Asset Management Company Ltd. has abstained from exercising its voting rights. For For For Abstain Abstain Abstain Shareholder Proposals Date Company Type of Meeting (AGM / EGM / Postal Ballot) Nil Proposal *Vote (For / Against / Abstain) 60

63 Risk Facrs: All Mutual funds and securities investments are subject market risks and there is no guarantee that the investment objective of the schemes will be achieved. The NAV of the units issued by the Mutual under the schemes can go up or down depending on various facrs and forces affecting securities markets. Past performance of the Sponsor, its affiliates/the AMC/the mutual fund or its schemes does not indicate the future performance of the schemes. The sponsor is not liable or responsible for any loss or shortfall resulting from the operation of the schemes. Investments in the schemes are subject interest rate risk, re-investment risk, basis risk, credit risk, liquidity risk, spread risk, prepayment risk, risk of possible loss of principal, etc. Equity and Equity Related Instruments are volatile by nature. Mid & Small size companies may be more volatile & less liquid than larger companies. Investments in gold exchange traded funds are subject market risk, risks associated with investment in physical gold, liquidity risk, counterparty risk, etc. The term Income Saver is only meant denote the dual objectives of delivering regular returns and the endeavor manage risk. The name of the scheme should in no way be construed as a guarantee or assurance of returns or capital invested in the scheme. Axis Liquid (An Open ended Liquid Scheme; the objective of the scheme is provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved), Axis Treasury Advantage (An Open ended Debt Scheme; the objective of the scheme is provide optimal returns and liquidity the Invesrs by investing primarily in a mix of money market and short term debt instruments which results in a portfolio having marginally higher maturity as compared a liquid fund at the same time maintaining a balance between safety and liquidity. However, there can be no assurance that the investment objective of the scheme will be achieved), Axis Tax Saver (An Open ended equity linked savings scheme with a lock-in period of 3 years; the objective of the scheme is generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the scheme will be achieved), Axis Equity (An Open ended growth scheme; the Objective of the scheme is achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities including derivatives. However, there can be no assurance that the investment objective of the scheme will be achieved) Axis Short Term (An Open ended Debt Scheme; the objective of the scheme is generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved), Plan Series 1 (384 days), Plan Series 11 (371 days), Plan Series 12 (367 days) and Plan Series 13 (370 days) (A Close ended debt scheme(s); the objective of the scheme is generate returns through a portfolio of debt & money market instruments that are maturing on or before the maturity of the respective plan(s)), Axis Income Saver (An open ended Income ; The Scheme seeks generate regular income through investments in debt & money market instruments, along with capital appreciation through limited exposure equity and equity related instruments. It also aims manage risk through active asset allocation.), Axis Triple Advantage (An Open ended Hybrid ; The Scheme seeks generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments, fixed income instruments & gold Exchange Traded s.), Axis Gold ETF (An Open ended Gold Exchange Traded ; The investment objective of the Scheme is generate returns that are in line with the performance of gold.), Axis Midcap (An Open ended Equity Scheme; To achieve long term capital appreciation by investing predominantly in equity & equity related instruments of mid size companies. The focus of the fund would be invest in relatively larger companies within this category) are only the names of the Scheme(s) and do not in any manner indicate either the quality of the Scheme(s), their future prospects and returns. Mutual Investments are subject market risks. Please read the Scheme Information Documents and Statement of Additional Information (SID & SAI) carefully before investing. For detailed risk facrs, please refer the SID. Statury Details: Axis Mutual has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted Rs. 1 Lakh). Trustee: Axis Mutual Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) 3

64 Book - Post SIP matlab TM SLEEP IN PEACE Invest fixed amounts each month for peace of mind. To open your SIP* account call ll-free or SMS PEACE Mutual investments are subject market risks. Read the Scheme Information Document and Statement of Additional Information carefully before investing. * SIP refers Systematic Investment Plan. Axis Asset Management Company Limited Axis House, First Floor, Bombay Dyeing Mills Compound, Pandurang Budhakar Marg, Worli, Mumbai , India. Tel.: Fax: cusmerservice@axismf.com 4