Abridged Annual Report For

Transcription

1 Abridged Annual Report For FRANKLIN TEMPLETON MUTUAL FUND - Templeton India Treasury Management Account Head Office : Indiabulls Finance Center, Tower 2, 12th and 13th Floor, Senapati Bapat Marg, Elphinstone (West), Mumbai Trustee Report to Investors Dear Templeton India Treasury Management Account Investor, The Directors of the Trustee Company have the pleasure of presenting before you the Sixteenth Annual Report of Franklin Templeton Mutual Fund ( Mutual Fund / FTMF ) for the year Along with the general information on the background/highlights of the Mutual Fund, investor services, significant regulatory changes, etc. the Trustees have specifically provided information on the Scheme. Brief background of Trust, Sponsor, Trustee Company and Asset Management Company: Franklin Templeton Mutual Fund FTMF has been constituted as a Trust on January 4, 1996 in accordance with the provisions of the Indian Trusts Act, 1882 and the Deed of Trust is registered under the Indian Registration Act, FTMF has been sponsored by Templeton International Inc. (liability restricted to the seed corpus of Rs.l lakh) with Franklin Templeton Trustee Services Pvt. Ltd. ( Trustee ) as the Trustee. The Trustee has entered into an Investment Management Agreement dated January 5, 1996 with Franklin Templeton Asset Management (India) Pvt. Ltd. ( AMC ) appointing the AMC as the Investment Manager for all the schemes of FTMF. FTMF is registered with SEBI on February 19, 1996 vide Registration No. MF/026/96/8. Templeton International Inc. Templeton International Inc. is a part of the Franklin Templeton Group, which is one of the largest Investment Management Company with US$683.5 bln (approximately Rs.3,856,478 crore) in assets under management as on May 31, 2012 and around 26 million Shareholder Accounts. Franklin Templeton has offices in over 30 countries including the United States of America, Bahamas, Canada, Argentina, France, Germany, Italy, Luxembourg, Poland, Russia, the United Kingdom, Hong Kong, Singapore, Korea, India, China, Australia and South Africa. Franklin Templeton Trustee Services Pvt. Ltd. Franklin Templeton Trustee Services Pvt. Ltd., a company incorporated under the Companies Act, 1956 and having its Registered Office at Indiabulls Finance Center, Tower 2, 12th and 13th Floor, Senapati Bapat Marg, Elphinstone (West), Mumbai is the Trustee to FTMF. The Trustee ensures that FTMF and the schemes floated there under are managed by the AMC in accordance with the Trust Deed, the regulations, directions and guidelines issued by SEBI, the stock exchanges and other regulatory agencies. Board of Directors of the Trustee Company: Mr. Gregory E. McGowan*, Executive Vice President, Director and General Counsel for International Development, Templeton Worldwide Inc. Mr. Stephen Dover*, International Chief Investment Officer, Franklin Templeton Investments Mr. Anand J. Vashi, Chartered Accountant Mr. Percy J. Pardiwalla, Advocate Dr. Indu Shahani, Principal - H.R. College of Commerce & Economics * These Directors represent Sponsors of the Trustee Company and are associates of the Sponsor. Franklin Templeton Asset Management (India) Pvt. Ltd. Franklin Templeton Asset Management (India) Pvt. Ltd., a company incorporated under the Companies Act, 1956 and having its Registered Office at Indiabulls Finance Center, Tower 2, 12th and 13th Floor, Senapati Bapat Marg, Elphinstone (West), Mumbai is the Investment Manager of FTMF. The entire paid up capital of the Investment Manager is held by Franklin Templeton Holding Ltd., Mauritius and its nominees. Franklin Templeton Holding Ltd. is a wholly owned subsidiary of Franklin Templeton Asia Holdings Pte. Ltd., Singapore. Franklin Templeton Asia Holdings Pte. Ltd. is a wholly owned subsidiary of Franklin Templeton Capital Holdings Pte. Ltd., Singapore, which is a wholly owned subsidiary of Templeton International Inc., USA, a wholly owned subsidiary of Templeton Worldwide Inc., USA, which in turn is a wholly owned subsidiary of Franklin Resources Inc., USA. The Investment Manager is approved by SEBI to act as the AMC of FTMF vide letter No.IIMARP/406/96 dated February 19, Board of Directors of the AMC: Mr. Vijay C. Advani*, Executive Vice President, Global Advisory Services, Franklin Resources Inc. Dr. J. Mark Mobius*, Executive Chairman, Templeton Emerging Markets Group Mr. Jed Plafker*, Executive Managing Director, Franklin Templeton International Advisor Services (Alternate Director to Dr. J. Mark Mobius) Mr. Vivek Kudva*, Managing Director, India and CEEMEA (Central and Eastern Europe, Middle East and Africa) Mr. Deepak M. Satwalekar, former Managing Director and CEO, HDFC Standard Life Insurance Co. Ltd. Mr. Navroz Seervai, Advocate Mr. M.B.N. Rao, former Chairman and Managing Director, Canara Bank * These Directors represent Sponsors of the AMC and are associates of the Sponsor. Review of activities of Franklin Templeton Mutual Fund: During the year under review, the Mutual Fund continued to focus on launching meaningful products with investment objectives that are relevant to investors. The Mutual Fund launched Templeton India Corporate Bond Opportunities Fund, an open end debt fund investing in corporate bonds, mobilizing over Rs.250 crore, FT India Feeder - Franklin U.S. Opportunities Fund, a fund of funds scheme investing in the units of Franklin U. S. Opportunities Fund, an overseas fund that invests primarily in U. S. securities, mobilizing over Rs.100 crore and Franklin Templeton Fixed Tenure Fund Series XVI mobilizing over Rs.68 crore. As a part of product rationalization process to make the offerings more meaningful and easy to understand for investors and to reduce product overlap between similar schemes, few schemes / plans were merged during the year. The Liquid Plan of Templeton India Treasury Management Account (TITMA) was merged into Regular Plan of TITMA effective September 4, Franklin FMCG Fund and Franklin Pharma Fund merged into Franklin India Prima Plus effective September 9, Franklin India Index Tax Fund (FITF) merged into Franklin India Index Fund NSE Nifty Plan effective September 9, Page -

2 Scheme performance, future outlook and operations of the Scheme: Templeton India Treasury Management Account (TITMA) is an open end liquid scheme that strives to strike an optimum balance between stable income and high liquidity by investing in a mix of short term debt and money market instruments. As part of our product rationalization exercise, the Liquid Plan of TITMA was merged into the Regular Plan w.e.f. September 4, All the plans of TITMA continue to have a common portfolio. The fund enjoys an A1+mfs credit rating from ICRA this represents the highest credit quality rating and lowest credit risk in the short term The fund s performance since inception and over the last year is summarized below - Last 1 Year Since Inception* TITMA - Retail Plan Growth Option 8.83% 7.15% Crisil Liquid Fund Index (scheme 8.44% N.A. benchmark) 1-year T-Bill (standard benchmark) 6.59% 6.29% TITMA - Institutional Plan Growth Option 9.11% 6.79% Crisil Liquid Fund Index (scheme 8.44% 6.31% benchmark) 1-year T-Bill (standard benchmark) 6.59% 5.11% TITMA - Super Institutional Growth Option 9.49% 7.37% Crisil Liquid Fund Index (scheme 8.44% 6.66% benchmark) 1-year T-Bill (standard benchmark) 6.59% 5.24% TITMA - Liquid Plan 8.00# 6.13@ Crisil Liquid Fund Index (scheme 7.74# 6.19@ benchmark) 1-year T-Bill (standard benchmark) 5.39# 5.01@ * Compounded annualized returns; # Annualized Returns given from March 31, 2011 till the date of Compounded annualized returns since inception till the date of merger. The returns are calculated as on September 2, 2011 instead of September 4, 2011 (date of merger) due to unavailibility of index values. Inception Date: April 29, 1998 (Regular); September 17, 2004 (Liquid); June 22, 2004 (Institutional); September 2, 2005 (Super Institutional) At the end of year the fund s average maturity stood at 0.20 years and yield to maturity was 10.40%. Investor Services: As on 2012, the Mutual Fund served more than 20 lakh active investors through its 34 branches and 105 offices of our collection partners across India. We continued to make progress in leveraging technology and making our processes more efficient with a view to increase the customer and distributor satisfaction. Some of the key initiatives implemented were online SIP registration, SMS for SIP due and renewal, changes in website for instant account statement printing and providing more information on account statements, etc. Further, we continue to work with the Industry on initiatives which have direct impact on investors like common account statements, standard complaint definition and other risk mitigation initiatives. Investor Complaints Report The Investor Complaints Report of FTMF for the year is given in the Annexure to this Report. Significant regulatory changes: During the year under review, the regulatory environment witnessed many changes. In order to enable investors make more informed decisions regarding the quality of securities and risk associated with different close ended debt oriented schemes, Securities and Exchange Board of India ( SEBI ) mandated mutual funds to make certain additional disclosures in SID / SAI / KIM. These include disclosures on credit evaluation policy for investments in debt securities, list of sectors where there would be no investments, type of instruments which the schemes propose to invest, etc. SEBI introduced payment of transaction charges to distributors and disclosure of details of debt and money market securities transacted. During the year under review, SEBI also introduced sending of Industry wide consolidated account statement to investors, dispatch of annual report by and the option to receive allotment and hold units in demat form. SEBI Mutual Fund Regulations were amended during the year under review. The Advertisement Code has been substituted with a new principle based code and additional disclosure requirements prescribed for disclosure of scheme performance. Further, Investment Valuation Norms have been amended to introduce Principles of Fair Valuation. To simplify KYC norms, make it more investor friendly and uniform across all intermediaries, SEBI has prescribed standard formats for KYC across all SEBI registered intermediaries with effect from January 1, Further, to avoid duplication of KYC process with every intermediary, a mechanism for centralization of the KYC records in the securities market has been developed by formulating KYC Registration Agency Regulations, An intermediary shall perform the initial KYC of its clients and upload the details on the system of the KYC Registration Agency ( KRA ). When the client approaches another intermediary, the intermediary can verify and download the client s details from the system of the KRA. The interoperability amongst various KRAs is presently being worked on. Investors are requested to note: Completion of KYC and In-Person Verification (IPV) is mandatory for investments in mutual funds. Investors are advised to complete KYC / IPV formalities with the AMC at the earliest. In case of unitholders whose addresses are available with the Mutual Fund, the abridged annual report would be sent by only. However, unitholders who wish to receive physical copies of the annual report/ abridged report may indicate their option to the Mutual Fund in writing. As a green initiative measure, we request the unitholders to register their address with the Mutual Fund if they have not already done so. Responsibility of the Trustees: The Trustees are the exclusive owner of the Trust fund and holds the same in trust for the benefit of the unitholders. The Trustees have been discharging their duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustees seek to ensure that the Mutual Fund and the schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the stock exchanges, the Association of Mutual Funds in India, other regulatory agencies and the Scheme Information Documents of the respective schemes. The Balance Sheet as on 2012, the Revenue Account for the period ended 2012 and the Auditors Report thereon are annexed to this Report. As mentioned in the Auditors Report the accounting policies are in accordance with SEBI (Mutual Funds) Regulations, In view of the fact that the amounts collected under the various schemes are deployed in securities markets, the price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments. Full Annual Report is available on the website of the Mutual Fund www. franklintempletonindia.com and shall be made available for inspection at its Head Office. Present and prospective investors can request for copies of the SAI/SID of schemes; and copies of the Trust Deed, detailed annual accounts of the schemes and of the AMC upon payment of the prescribed fee. Investment objectives of the Scheme: TITMA is an open end liquid scheme with an objective to provide current income with high liquidity. Page - 2

3 Unclaimed dividends and redemptions of more than 90 days as on March 31, 2012: Unclaimed Dividends Amount (Rs.) No. of Investors Unclaimed Redemptions Amount (Rs.) No. of Investors - - 1, Statutory Information: The Sponsor, Templeton International Inc. is not responsible or liable for any loss resulting from the operation of the schemes of the Mutual Fund beyond its initial contribution of Rs.1 lac for setting up the Mutual Fund, and such other accretions/additions to the same. Acknowledgments: The Trustees wish to place on record their appreciation for the dedication and sincerity of the employees of the AMC. The Trustees thank the Government of India, the Securities and Exchange Board of India, the Reserve Bank of India and the Association of Mutual Funds in India for their ongoing support, co-operation and guidance during the year under review. The Trustees take this opportunity to thank its family of investors for their confidence and wholehearted faith reposed in the Mutual Fund. In addition, the Trustees would also like to thank the Auditors, Custodian, Bankers, Registrar, and all other service providers for their valuable support. We look forward to your continued support and assure you of our commitment to quality products and services from the Mutual Fund. Yours sincerely, for Franklin Templeton Trustee Services Private Limited (Trustee of Franklin Templeton Mutual Fund) Sd/- Gregory McGowan Chairman Date: July 13, 2012 Annexure to the Trustee Report Franklin Templeton Mutual Fund Investor Complaints Report for the Financial Year Total Number of Folios: 20,03,523 Complaint Code Type of Complaint# No. of complaints pending at the beginning of the year (a) No. of Complaints received during the year (b) Within 30 days days Resolved days Action on (a) and (b) Beyond 180 days Non Actionable * 0-3 mths Pending 3-6 mths 6-9 mths 9-12 mths 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/ distributors/ employees, etc. *Non actionable means the complaint that are incomplete / outside the scope of the mutual fund Note: Approximately 96% of the complaints have been resolved within 30 days. The time shown above is the average time for resolution of complaints from receipt of initial complaint till eventual closure. Delays could be caused by a variety of factors including the need to receive information from clients, due process followed by banks in cases where payment instruments have been lost and delays due to verification of certain facts received from clients. This Report has been approved by the Board of Franklin Templeton Trustee Services Private Limited at its Meeting held on April 28, Page - 3

4 Report of the Auditors To the Board of Directors of Trustees of FRANKLIN TEMPLETON MUTUAL FUND TEMPLETON INDIA TREASURY MANAGEMENT ACCOUNT: We have examined the abridged balance sheet of FRANKLIN TEMPLETON MUTUAL FUND TEMPLETON INDIA TREASURY MANAGEMENT ACCOUNT (the Scheme ) as at 2012 and the abridged revenue account for the year ended on that date, together with the notes thereon, annexed thereto. The abridged financial statements have been prepared by Franklin Templeton Asset Management (India) Private Limited, the Scheme s asset manager (the AMC ) pursuant to Regulation 56 (1) of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 (the SEBI Regulations ), as per the format prescribed by SEBI circular number SEBI/ IMD/CIR No.8/132968/2008 dated July 24, 2008 and are based on the accounts of the Scheme for the year ended, prepared in accordance with the accounting policies and standards specified in the Ninth Schedule to the SEBI Regulations and covered by our report of even date to the Board of Directors of Trustees of Franklin Templeton Mutual Fund, which report is attached. The abridged financial statements are the responsibility of the AMC. Our responsibility is to express an opinion on these abridged financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the abridged financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the abridged financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall abridged financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. We report that: i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; ii. The abridged balance sheet and abridged revenue account, dealt with by this report are in agreement with the books of account; iii. In our opinion, the abridged balance sheet and the abridged revenue account dealt with by this report have been prepared as per the format prescribed by SEBI circular number SEBI/IMD/CIR No. 8/132968/2008 dated July 24, 2008 and are based on the accounts of the Scheme for the year ended, prepared in accordance with the accounting policies and standards specified in the Ninth Schedule to the SEBI Regulations; iv. In our opinion, and on the basis of information and explanations given to us, the methods used to value non traded securities, where applicable, as at 2012, 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 Directors of Franklin Templeton Trustee Services Private Limited, and are fair and reasonable; v. In our opinion, and to the best of our information and according to the explanations given to us, the said abridged 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 abridged balance sheet, of the state of affairs of the Scheme as at 2012; and b) in the case of the abridged revenue account, of the surplus, for the year ended on that date. For S.R. Batliboi & Co. Firm Registration Number E Chartered Accountants per Shrawan Jalan Partner Membership No.: Mumbai Date: July 13, 2012 Abridged Balance Sheet as at 2012 LIABILITIES As at 2012 Rupees in Lakhs As at Unit Capital 164, , Reserves and Surplus 2.1 Unit Premium Reserve (14,544.78) (18,443.79) 2.2 Unrealised Appreciation Reserve Retained Surplus 67, , Loans and Borrowings 62, Current Liabilities and Provisions 4.1 Current Liabilities , TOTAL 279, , ASSETS 1 Investments 1.2 Unlisted Securities Securitised Debt Securities - 8, Commercial Papers 88, , Certificate of Deposits 185, , Deposits - 48, Other Current Assets 3.1 Cash and Bank Balances CBLO/ Reverse Repo Lending Others 5, , TOTAL 279, , Notes to Accounts - Annexure I Page - 4

5 Abridged Revenue Account for the year ended INCOME 2012 Rupees in Lakhs Interest 36, , Realised Gains / (Losses) on Interscheme sale of investments Realised Gains / (Losses) on External sale / redemption of investments (1,093.60) 1.4 Other Income EXPENSES ( A ) 36, , Management Fees Service Tax on Management Fees Transfer Agents Fees and Expenses Custodian Fees Trusteeship Fees Commission to Agents Marketing and Distribution Expenses Audit Fees Other Operating Expenses , , Expenses Written Back pertaining to previous year (15.89) (1.32) 3 NET REALISED GAINS / (LOSSES) FOR THE YEAR (A -B = C) ( B ) 1, , , , Change in Unrealised Depreciation in value of Investments ( D ) (59.27) NET GAINS / (LOSSES) FOR THE YEAR (C -D = E) 35, , Change in Unrealised Appreciation in the value of Investments ( F ) NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 35, , Less: Balance Transfer to Unrealised Appreciation Reserve Add / (Less): Equalisation Credit/(Debit) (4,411.49) (12,026.95) 8 Total 30, , Dividend Appropriation 9.1 Income Distributed during the Year (8,320.63) (6,502.52) 9.2 Tax on Income Distributed during the Year (2,613.75) (1,892.32) 10 Retained Surplus / (Deficit) carried forward to Balance sheet 19, , Notes to Accounts - Annexure I Page - 5

6 Key Statistics for the year ended NAV per unit (Rs.): Open: Growth Option 2, , Daily Dividend Option 1, , Weekly Dividend Option 1, , Institutional Growth Option 1, , Institutional Weekly Dividend Option 1, , Institutional Daily Dividend Option 1, , Liquid Growth Option 1, , Liquid Weekly Dividend Option 1, , Liquid Daily Dividend Option 1, , Super Institutional Growth Option 1, , Super Institutional Weekly Dividend Option 1, , Super Institutional Daily Dividend Option 1, , High: Growth Option * 2, Daily Dividend Option * 1, Weekly Dividend Option * 1, Institutional Growth Option * 1, Institutional Weekly Dividend Option * 1, Institutional Daily Dividend Option * 1, Liquid Growth Option 1, , Liquid Weekly Dividend Option 1, , Liquid Daily Dividend Option 1, , Super Institutional Growth Option * 1, Super Institutional Weekly Dividend Option * 1, Super Institutional Daily Dividend Option * 1, Low: Growth Option 2, , Daily Dividend Option 1, , Weekly Dividend Option 1, , Institutional Growth Option 1, , Institutional Weekly Dividend Option 1, , Institutional Daily Dividend Option 1, , Liquid Growth Option 1, , Liquid Weekly Dividend Option 1, , Liquid Daily Dividend Option 1, , Super Institutional Growth Option 1, , Super Institutional Weekly Dividend Option 1, , Super Institutional Daily Dividend Option 1, , End: Growth Option * 2, Daily Dividend Option * 1, Weekly Dividend Option * 1, Institutional Growth Option * 1, Institutional Weekly Dividend Option * 1, Page - 6

7 Key Statistics for the year ended Institutional Daily Dividend Option * 1, Liquid Growth Option - 1, Liquid Weekly Dividend Option - 1, Liquid Daily Dividend Option - 1, Super Institutional Growth Option * 1, Super Institutional Weekly Dividend Option * 1, Super Institutional Daily Dividend Option * 1, Closing Assets Under Management (Rs in Lakhs) End 216, , Average (AAuM)** 391, , Gross income as % of AAuM** ( Gross Income = (A) in Revenue Account): 9.29% 7.23% 4 Expense Ratio: a. Total Expense as % of AAuM** Regular Plan 0.85% 0.85% Liquid Plan % Institutional Plan 0.60% 0.60% Super Institutional Plan 0.24% 0.30% b. Management Fee as % of AAuM** Regular Plan 0.63% 0.54% Liquid Plan % Institutional Plan 0.60% 0.40% Super Institutional Plan 0.24% 0.22% 5 Net Income as a percentage of AAuM** (Net Income = (C) in Revenue Account): 9.01% 6.88% 6 Portfolio turnover ratio: % % 7 Total Dividend per unit distributed during the year (Rs.) : Daily Dividend Plan *** Individuals/HUF Others Weekly Dividend Plan *** Individuals/HUF Others Institutional Daily Dividend Plan *** Individuals/HUF Others Institutional Weekly Dividend Plan *** Individuals/HUF Others Super Institutional Daily Dividend Plan *** Individuals/HUF Others Super Institutional Weekly Dividend Plan *** Individuals/HUF Others Liquid Plan - Daily Dividend *** Individuals/HUF Others Page - 7

8 Key Statistics for the year ended Liquid Plan - Weekly Dividend *** Individuals/HUF Others Returns: a. Last One Year Scheme Growth Plan: 8.83%@ 6.03% Institutional Growth Plan 9.11%@ 6.30% Liquid Growth Plan % Super Institutional Growth Plan 9.49%@ 6.62% Benchmark (CRISIL Liquid Fund Index) 8.44%@ 6.21% Standard Benchmark (1 year T-Bill Index) 6.59%@ 3.86% b. Since Inception Scheme Growth Plan: 7.15%@ 7.02% Institutional Growth Plan 6.79%@ 6.46% Liquid Growth Plan % Super Institutional Growth Plan 7.37%@ 6.99% Benchmark (CRISIL Liquid Fund Index) Standard Benchmark (1 year T-Bill Index) *Represent computed Net Asset Value *** Net of Dividend Distribution tax, if any. RP - Regular Plan, IP - Institutional Plan, LP - Liquid Plan, SIP - Super Institutional Plan **Average Assets Under on last declared Net Asset Value N.A (RP), 6.31%@ (IP), 6.66%@ (SIP) 6.29%@ (RP), 5.11%@ (IP), 5.24%@ (SIP) N.A (RP), 6.00% (IP), 6.08% (LP), 6.34% (SIP) 6.26%(RP), 4.89% (IP), 5.00% (SIP) Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Rupees in Lakhs Particulars Investments: 1.1 Investments of the Scheme are held in trust by the trustees for the benefits of the Schemes Unitholders. 1.2 Exposure to Derivative Instruments: NIL NIL 1.3 Investments in Associates and Group Companies: NIL NIL 1.4 Securities Borrowed and/or Lend by the scheme: NIL NIL 1.5 Non performing assets (NPA): NIL NIL 1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial Year and percentage to net assets. Listed Securities / Securities Awaited Listing: (Equity linked debentures / Other debentures and bonds / Securitised debt securities) - appreciation depreciation Net Unrealised Gain/Loss as a percentage of Net assets as on March 31 - (0.01) Page - 8

9 Money Market Instruments (Commercial papers / Certificate of deposits) - appreciation depreciation Net Unrealised Gain/Loss as a percentage of Net assets as on March 31 (0.01) (0.04) 1.7 Aggregate Value of Purchase and Sale with Percentage to average assets. Purchases - amount 3,618, ,595, as a percentage of average daily net assets Sales - amount 1,695, ,245, as a percentage of average daily net assets Aggregate value of Non-Traded securities and percentage to Net assets: Equity - - Debt - 8, Money Market Instruments 274, , Total 274, , Percentage of Non Traded securities to Net Assets as on March Details of Transaction with Associates under regulation 25(8) : - Brokerage Paid to Associates/Related Parties/Group companies of Sponsor/AMC - NIL - Commission Paid to Associates/Related Parties/Group companies of Sponsor/AMC Name of Associate/Related Parties/ Group Companies of Sponsor/AMC Nature of Association/ Relation Period Amount (Rs. CR) Business Given# Commission Paid $ % of total business received by the Fund Amount (Rs.) % of Total commission paid by the Fund ITI Capital Markets Limited Associate Company ,090.72* 0.02% Mahindra & Mahindra Financial Services Limited Associate Company Name of Associate/Related Parties/ Group Companies of Sponsor/AMC Nature of Association/ Relation Period Amount (Rs. CR) Business Given# Commission Paid $ % of total business received by the Fund Amount (Rs.) % of Total commission paid by the Fund ITI Capital Markets Limited Associate Company ,320.66* 0.02% Mahindra & Mahindra Financial Services Limited *Commission is paid for the business mobilized prior to April 1, 2010 # Only fresh mobilization received during the period is considered Associate Company % 45, % $ Commission paid details reported includes all types of commission that have been paid during the period Mahindra & Mahindra Financial Services Limited (ceased to be an Associate w.e.f October 08,2010) 3 Large Holdings (over 25% of the NAV of the Scheme) : NIL NIL Page - 9

10 4 Unit Capital movement during the year ended : Units of Rs 1000 each fully paid up Quantity Amount Growth Plan Outstanding, beginning of year 332, , , , Issued during the year 1,930, , , , Redeemed during the year (1,791,027.03) (1,031,756.50) (17,910.27) (10,317.57) Outstanding, end of year 472, , , , Dividend Plan - Weekly Outstanding, beginning of year 327, , , , Issued during the year 831, , , , Redeemed during the year (828,620.00) (1,152,886.95) (8,286.20) (11,528.87) Outstanding, end of year 330, , , , Dividend Plan - Daily Outstanding, beginning of year 287, , , , Issued during the year 1,966, ,997, , , Redeemed during the year (1,902,684.93) (5,126,657.27) (19,026.85) (51,266.57) Outstanding, end of year 351, , , , Liquid - Growth Plan Outstanding, beginning of year 232, , , , Issued during the year 133, ,027, , , Redeemed during the year (366,045.98) (1,065,452.50) (3,660.46) (10,654.52) Outstanding, end of year - 232, , Liquid - Weekly Dividend Plan Outstanding, beginning of year 105, , , , Issued during the year 89, , , Redeemed during the year (194,887.13) (268,115.08) (1,948.87) (2,681.15) Outstanding, end of year - 105, , Liquid - Daily Dividend Plan Outstanding, beginning of year 122, , , Issued during the year 52, , , Redeemed during the year (175,221.92) (321,097.18) (1,752.21) (3,210.97) Outstanding, end of year - 122, , Institutional - Growth Plan Outstanding, beginning of year 112, , , Issued during the year 2,624, ,884, , , Redeemed during the year (2,640,183.43) (1,848,186.32) (26,401.83) (18,481.86) Outstanding, end of year 96, , , Institutional - Weekly Dividend Plan Outstanding, beginning of year 80, , Issued during the year 142, , , , Redeemed during the year (165,578.06) (366,227.75) (1,655.78) (3,662.28) Outstanding, end of year 57, , Institutional - Daily Dividend Plan Outstanding, beginning of year 198, , , Issued during the year 1,790, ,289, , , Redeemed during the year (1,682,933.58) (5,183,800.61) (16,829.34) (51,838.01) Outstanding, end of year 305, , , , Page - 10

11 Super Institutional - Growth Plan Quantity Amount Outstanding, beginning of year 4,191, ,701, , , Issued during the year 613,993, ,768, ,139, ,387, Redeemed during the year (611,361,922.42) (738,278,010.21) (6,113,619.21) (7,382,780.10) Outstanding, end of year 6,823, ,191, , , Super Institutional - Weekly Dividend Plan Outstanding, beginning of year 3,352, ,163, , , Issued during the year 4,266, ,203, , , Redeemed during the year (4,091,003.45) (14,015,039.91) (40,910.02) (140,150.40) Outstanding, end of year 3,527, ,352, , , Super Institutional - Daily Dividend Plan Outstanding, beginning of year 2,397, ,023, , , Issued during the year 220,377, ,467, ,203, ,444, Redeemed during the year (218,292,976.44) (343,093,513.59) (2,182,929.75) (3,430,935.14) Outstanding, end of year 4,481, ,397, , , Prior year figures have been reclassified, wherever applicable, to conform to current years presentation. 6 Contingent Liability NIL NIL 7 In case where the Surplus / (Deficit) for the period (after adjustment of income equalisation) is lower than the amount of distributed income (including tax on income distributed), the income has been distributed by the Scheme to its unitholders out of the distributable surplus available with the Scheme, which consists of the Surplus / (Deficit) for the period (after adjustment of income equalisation) and the retained earnings / accumulated reserves of earlier period(s). 8 Merger of Templeton India Treasury Management Account Liquid Plan (the Transferor Plan ) into Templeton India Treasury Management Account Regular Plan (the Transferee Plan ) respectively. The merger was approved by the board of directors of the trustee and the AMC vide circular resolution passed on February 01, SEBI has accorded its no objection for the merger; vide its letter dated May 20, The investment objective, asset allocation pattern, annual recurring expenses and all other provisions as contained in the Scheme Information Document of Transferee Plan remains unchanged post the merger. As required by the SEBI Regulations, the AMC had sent letters to unit-holders of both the plans seeking their approval for the merger with an option to redeem their units at the prevailing NAV at their discretion. The Unit holders who consented to the merger were allotted Units in Templeton India Treasury Management Account Regular Plan based on September 04, 2011 closing NAV of Templeton India Treasury Management Account Regular Plan respectively. 9 Templeton India Treasury Management Account has entered into a Credit Line arrangement for the purpose of meeting the requirements of the redemption from the unit-holders. As per the terms of the agreement entered with the banks, the borrowing has been secured by a floating charge on rated Public sector bonds, Corporate bonds and Certificate of deposits held by the respective Scheme making the borrowing. The borrowings made by the Scheme were within the limits permissible under the SEBI Regulations, as on the date of the borrowings, the details of which are as given below: Name of the Scheme Date of borrowing Amount borrowed (Rs. Cr) Amount borrowed as a % of Net Assets on the date of borrowing Date of Repayment Interest on borrowing borne by the Fund adjusted from interest income (Rs. Cr) Templeton India Treasury Management Account % April 5, Templeton India Treasury Management Account September 28, % October 3, Templeton India Treasury Management Account March 30, % April 3, Templeton India Treasury Management Account January 27, % January 30, Templeton India Treasury Management Account January 20, % January 23, Templeton India Treasury Management Account December 30, % January 2, The cost of the borrowing has been shared between the Scheme and the AMC in such a manner that the residual investors of the scheme do not suffer at the cost of the redeeming investors. The borrowing cost to the extent of gross portfolio yield has been borne by the scheme and has been adjusted against interest income. 10 Expenses other than management fee is inclusive of service tax where applicable. Proxy Voting: The general voting policies and procedures of Franklin Templeton Asset Management (India) Private Limited for the Schemes of Franklin Templeton Mutual Fund and the actual exercise of votes in the general meetings of investee companies for financial year have been disclosed on and in full Annual Report for financial year Page - 11

12 Book -Post If undelivered, please return to : FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PVT. LTD. C/o. Bhavish Graphics, Old No. 38, New No. 6, McNichols Road, Chetput, Chennai The contents of this document are only for informative purposes and are not to be used or considered to be an offer to sell or buy units of Franklin Templeton Mutual Fund schemes. Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAV of the scheme may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the scheme. The Mutual Fund is not guaranteeing or assuring any dividend under the scheme and the same is subject to the availability and adequacy of distributable surplus. The Mutual Fund is also not assuring that it will make any dividend distributions under the dividend plan of the scheme though it has every intention of doing so and payment of dividend is at the sole discretion of Trustees. The investments made by the scheme are subject to external risks. Page - 12