Auditors Report To the Board of Directors of Trustees of Franklin Templeton Mutual Fund 1. We have audited the attached balance sheets of the belowmentioned Schemes of Franklin Templeton Mutual Fund (the Schemes ) as at March 31, 2011 and also the revenue accounts for the year ended on that date annexed thereto. Name of Schemes: These financial statements are the responsibility of the management of Franklin Templeton Asset Management (India) Private Limited, the Schemes asset manager. Our responsibility is to express an opinion on these financial statements based on our audit. Presentation of these separate balance sheets and revenue accounts in a columnar form is not intended to indicate that they bear any relation to each other, or are interdependent or comparable in any way. 2. 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 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 to 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 to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 (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 as at March 31, 2011, wherever applicable, 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 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 March 31, 2011; and b) in the case of the revenue accounts, of the surplus, for the year ended on that date. For S. R. Batliboi & Co. Firm Registration Number 301003E Chartered Accountants Sd/ per Shrawan Jalan Partner Membership No.: 102102 Mumbai, July 8, 2011
BALANCE SHEET AS AT MARCH 31, 2011 (All amounts in thousands of Rupees) SOURCES OF FUNDS Schedules As at As at As at As at March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 1 Unit Capital 2(b) & 3 362,176 301,330 426,840 479,228 2 Reserves and Surplus 4 2.1 Unrealised Appreciation Reserve 479,900 391,982 822,926 640,426 2.2 Retained Surplus 703,557 492,465 2,486,103 2,472,815 3 Current Liabilities and Provisions 5 3.1 Current Liabilities 46,907 27,173 34,403 51,798 TOTAL 1,592,540 1,212,950 3,770,272 3,644,267 APPLICATION OF FUNDS 1 Investments 2(c), 6 & 15 1.1 Listed Securities 1.1.1 Equity Shares 1,274,068 921,862 1,442,339 1,350,229 1.1.2 Other Debentures and Bonds 2,427 1.2 Unlisted Securities 1.2.1 Equity Shares 407 10 2 Other Current Assets 7 2.1 Cash and Bank Balances 3,200 4,143 3,362 2,685 2.2 CBLO/ Reverse Repo Lending 238,421 124,480 111,711 94,280 2.3 Others 4,632 12,046 2,735 4,360 3 Accumulated Unit Discount, Net 8 69,792 150,419 2,209,718 2,192,703 TOTAL 1,592,540 1,212,950 3,770,272 3,644,267 Notes to Accounts 1 to 15 The accompanying schedules are an integral part of this Balance Sheet. As per our attached report of even date For Franklin Templeton Asset Management (India) Private Limited For S.R. Batliboi and Co. For Franklin Templeton Trustee Sd/ Sd/ Firm Registration no. 301003E Services Private Limited Navroz Seervai Vivek Kudva Chartered Accountants Director Director Sd/ Sd/ Sd/ Anand J. Vashi Harshendu Bindal Anand Radhakrishnan Director President Senior Vice President and Portfolio Manager Sd/ Sd/ Sd/ Sd/ per Shrawan Jalan Indu Shahani Vivek Pai Murali Krishna Yerram Partner Director Vice President Asst. Vice President Membership No. 102102 Sd/ Rajat Malhotra July 8, 2011 Asst. Vice President Mumbai
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 (All amounts in thousands of Rupees) Schedules Year ended Year ended Year ended Year ended March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 1 INCOME 1.1 Dividend 2(d) 12,331 4,881 24,290 13,788 1.2 Interest 2(d) & 9 9,987 2,071 4,385 1,734 1.3 Realised Gain on External Sale / Redemption of Investments, net 2(d) 66,368 80,707 134,748 1.4 Other Income 1 1 1 1 88,687 87,660 163,424 15,523 2 EXPENSES 2.1 Realised Loss on External Sale / Redemption of Investments, net 2(d) 122,995 2.2 Management Fees 10 15,730 7,876 16,708 14,122 2.3 Service Tax on Management Fees 10 1,620 811 1,721 1,455 2.4 Transfer Agents Fees and Expenses 2,017 1,057 2,549 2,311 2.5 Custodian Fees 217 92 223 179 2.6 Trusteeship Fees 10 40 19 43 35 2.7 Commission to Agents 8,656 4,040 5,714 6,499 2.8 Marketing and Distribution Expenses 728 326 3,525 1,204 2.9 Audit Fees 40 19 43 36 2.10 Other Operating Expenses 1,019 1,512 1,242 2,928 30,067 15,752 31,768 151,764 2.11 Expenses Written Back pertaining to previous year (366) 29,701 15,752 31,768 151,764 3 NET REALISED GAINS / (LOSSES) FOR THE YEAR 58,986 71,908 131,656 (136,241) 4 Change in Unrealised Depreciation in value of Investments 2(c) & 6(ii) (43,671) (352,114) 5 NET GAINS / (LOSSES) FOR THE YEAR (34) 58,986 115,579 131,656 215,873 6 Change in Unrealised Appreciation in the value of Investments 87,918 391,982 182,500 640,426 7 NET GAINS / (LOSSES) FOR THE YEAR AFTER CHANGE IN UNREALISED APPRECIATION (5+6) 146,904 507,561 314,156 856,299 7.1 Add: Balance Transfer from Unrealised Appreciation Reserve 4 391,982 640,426 7.2 Less: Balance Transfer to Unrealised Appreciation Reserve 4 479,900 391,982 822,926 640,426 7.3 Add / (Less): Equalisation Credit/(Debit) 2(e) 152,106 28,025 (59,998) (852) 8 Total 211,092 143,604 71,658 215,021 9 Dividend Appropriation 9.1 Income Distributed during the Year 13 (58,370) (10,624) 10 NET SURPLUS / (DEFICIT) FOR THE YEAR TRANSFERRED TO 4 211,092 143,604 13,288 204,397 (8+9) BALANCE SHEET Notes to Accounts 1 to 15 The accompanying schedules are an integral part of this Revenue Account. As per our attached report of even date For Franklin Templeton Asset Management (India) Private Limited For S.R. Batliboi and Co. For Franklin Templeton Trustee Sd/ Sd/ Firm Registration no. 301003E Services Private Limited Navroz Seervai Vivek Kudva Chartered Accountants Director Director Sd/ Sd/ Sd/ Anand J. Vashi Harshendu Bindal Anand Radhakrishnan Director President Senior Vice President and Portfolio Manager Sd/ Sd/ Sd/ Sd/ per Shrawan Jalan Indu Shahani Vivek Pai Murali Krishna Yerram Partner Director Vice President Asst. Vice President Membership No. 102102 July 8, 2011 Rajat Malhotra Mumbai Asst. Vice President
SCHEDULES TO THE BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 (All amounts in thousands of Rupees unless specified otherwise) 1. BACKGROUND Franklin TempletonMutual Fund ( the Fund ) was establishedas a trust under the Indian Trusts Act, 1882, by way of a trust deeddated January 4, 1996, a supplementarytrust deeddated March 30, 1996 and August 26, 2005 executedby TempletonInternational Inc. USA, the sponsor of the Fund. TempletonInternationalInc. is a part of the Franklin TempletonInvestments group. In accordance with the Securities and Exchange Board of India ( SEBI ) (Mutual Funds) Regulations, 1996 ( the SEBI Regulations ), the Board of Directors of Franklin TempletonTrustee Services Private Limited ( the Trustee ) has appointed Franklin Templeton Asset Management (India) Private Limited ('the AMC') to manage the Fund s affairs and operate its Schemes. The objective and other feature of the schemes covered in the financial statement are as under: Scheme Name Nature of the Scheme Date of Allotment Scheme Objective Plans Offered Franklin Pharma Fund Franklin Infotech Fund Open ended mutual fund scheme Open ended mutual fund scheme March 31, 1999 August 22, 1998 The Scheme seeks to provide long term capital The Scheme offers its investors two plans: the appreciation by investing primarily in life sciences Dividend Plan and the Growth Plan ( the industry such as pharmaceuticals, biotechnologyand Plans ). agrochemicals. The investmentobjectiveof the Schemeis to generate The Scheme offers its investors two plans: the capital appreciation from a portfolio of infotech Dividend Plan and the Growth Plan ( the sector based equity. Plans ). The Board of Directors of Franklin Templeton Trustee Services Private Limited and Franklin Templeton Asset Management (India) Private Limited vide circular resolutions passed on August 7, 2009 have, approved the merger of Franklin FMCG Fund ( FFF ) and Franklin Pharma Fund ( FPF) (the 'Merging Schemes') into Franklin India Prima Plus ( FIPP ) (the 'Merged Scheme'). SEBI has vide its letter dated June 06, 2011 conveyed its no objection to the proposed merger of the Schemes. Pending such approval as at March 31, 2011, no adjustments are required to be made to the financial statements of the Merging and the Merged Schemes. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are prepared on the accrual basis of accounting, under the historical cost convention, as modified for investments, which are markedtomarket. The significant accounting policies, which are in accordance with the SEBI Regulations and have been approved by the Board of Directors of the AMC and the Trustee, are stated below. (a) Determination of net asset value Whilethe investmentsand other net assets of each Plan are separately managedas a singleportfolio, the net asset value of the units of each Plan is computedseparately for units issued under each of that Plan s Options. The net asset value of the units of the Scheme is determinedseparately for units issued under the Plans after includingthe respectiveunit capital and reserves and surplus, and reducing net deficit and accumulated discount, if any. (b) For reporting the net asset values, the daily incomeearned, includingrealised profit or loss and unrealisedgain or loss in the value of investments,and expensesincurred by the Scheme, are allocated to the Plans in proportion to their respective daily net assets as at the end of the immediately preceding day. Unit capital Unit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactions relating to the year ended on that date. Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payouts is credited or debited respectively to the equalisation account, a mandatory requirement for open ended mutual fund Schemes. Prior to March 15, 2010, the Unit Premium Reserve was available for dividenddistribution except to the extent it is represented by unrealised net appreciation in value of investments. (c) Investments Accounting for investment transactions Right entitlements are recognised as investments on the exrights date. Bonus entitlements are recognised as investments on the exbonus date. Other Corporate Action entitlements are recognised on the ex date. Valuation of investments Traded Equity and Equity related Securities are valued at the last quoted closing price on the Bombay Stock Exchange (BSE). If a security is not traded on BSE, it will be valued at the last quoted closing price on National Stock Exchange of India Limited (NSE) or any other stock exchange (in that order). Purchase and sale of investmentsare recorded on the date of the transaction, at cost and sale price respectively, after consideringbrokerage, commission,securities transaction tax and fees payable or receivable, if any. The front end fee receivable, if any, is reduced from the cost of investment. If a security is not traded on any stock exchange on a particular valuation day, the last quoted closing price on BSE or NSE or other recognised stock exchange (in that order) o the earliest previous day would be used, provided such day is not more than thirty days prior to the valuation day. Investments in Equity shares under Qualified Institutional Placement (QIP) are valued at cost or market value, whichever is lower, till the date of listing of the security. Thinly Traded, Nontraded and unlisted Equity are valued "in good faith" as determined, in accordance with the SEBI Regulations. In respect of non traded/ thinly traded Foreign securities, the valuation is stated at fair value as determined In good faith by the AMC. Pursuant to SEBI Circular no. SEBI/IMD/CIR No.16/ 193388/2010 dated February 02, 2010, w.e.f July 1, 2010 Traded Debt Securities (other than Government Securities) are valued at the weightedaverage traded price as on the date of valuation with effect from July 01, 2010 as against the earlier practice of valuing it at the closing market price as on the date of valuation, provided there is an individual trade in that security in marketable lot. All other investments are stated at their fair value as determined in good faith by the AMC in accordance with the SEBI Regulations and reviewed by the Trustee.
Investment in Mutual Fund Units are valued at the last declared / computed net asset value ('NAV') per unit. Pursuant to SEBI Circular no. SEBI/IMD/CIR No.16/ 193388/2010 dated February 02, 2010, w.e.f July 1, 2010 Traded Debt Securities (other than Government Securities) are valued at the weighted average traded price as on the date of valuation with effect from July 01, 2010 as against the earlier practice of valuing it at the closing market price as on the date of valuation, provided there is an individual trade in that security in marketable lot. Nontraded / thinly traded / unlisted debt securities over 91days to maturity, if not traded on the valuation day, are valued using average of benchmark yields/matrix of spreads over risk free benchmark yield obtained from the CRISIL and ICRA as against the earlier practice of valuing Nontraded / thinly traded / unlisted debt securities over 182 days to maturity, if not traded on the valuation day, are valued using average of benchmark yields/matrix of spreads over risk free benchmark yield obtained from the CRISIL and ICRA. The net unrealisedgain or loss in the value of investmentsis determinedseparately for each category of investments.the change in the net unrealisedloss, if any, betweentwo balance sheet dates is recognisedin the revenueaccount and the change in net unrealised gain, if any, is adjusted in an unrealised appreciation reserve. The loss on investments sold/transferred during the year is charged to the revenue account. (d) Revenue recognition Dividend income is recognised on the exdividend date. Interest income is recognised on an accrual basis. Profit or loss on sale of investments is determined on the basis of the weighted average cost method. (e) Equalisation account The purpose of equalizationaccount is to maintain per unit amount of a Plan s/option s share of the Scheme sundistributed income, so that continuingunit holders share of undistributed income remains unchanged on issue or redemption of units under that Plan/Option. Prior to March 15, 2010, when units were issued or redeemed, the total undistributed income from the beginning of the accounting year to the date of the transaction was determined. Based on the number of units outstanding on the transaction date, the undistributed income associated with each unit was computed. The per unit amount so determined was credited and debited to the equalization account on issue and redemption of each unit respectively. Pursuant to SEBI circular dated March 15, 2010, the Trustee/AMC has changed the method of calculating equalization per unit w.e.f. that date viz: a) Whenthe sale price is higherthan the face value of the unit, the total accumulatedundistributedincome(includingrealizedgains) till the date of the transaction is determined. Based on the number of units outstandingon the transaction date, the undistributedincome(includingrealizedgains) associated with each unit is computed. The per unit amount so determined is credited and debited to the equalization account on issue and redemption of each unit respectively. b) When the sale price is lower than the face value of the unit, the differencebetweenthe Net asset value and the par value is debitedand creditedto the equalizationaccount on issue and redemption of unit respectively. Pursuant to SEBI circular dated March 15, 2010, an appropriate amount of the realized / unrealized gain has been reallocated between the plans of the Scheme, based on the plans AUM as on March 15, 2010. (f) Load charges All load, including Contingent and Deferred Sales Charges, charged at the time of purchase and sale of units, is being utilised towards meeting distribution and marketing expenses. The utilization from the balances as at July 31, 2009 is restricted to a maximum of one third of the load balances as at July 31, 2009 as required by the SEBI Circular no. CIR/IMD/DF/4/2011 dated March 09, 2011. With effect from August 01, 2009, exit load upto 1% charged at the time of sale of units, is being utilised towards meeting distribution and marketing expenses. Exit load charged in excess of 1% is credited to the respective Schemes immediately as Other Income. Unutilised amount of load is carried forward to subsequent period. If the amount is considered in excess by the AMC / Trustees, then such excess amount is credited to the respective Schemes as Other Income. (THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK)
SCHEDULES TO THE BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 Quantity Amount Quantity Amount Schedules March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 3 UNIT CAPITAL Units of Rs 10 each fully paid up Growth Plan Outstanding, beginning of year 6,722,402.606 6,180,049.317 67,224 61,801 13,667,952.998 15,062,364.187 136,679 150,623 Issued during the year 6,094,311.760 3,099,300.701 60,943 30,993 1,882,795.241 2,069,993.958 18,828 20,700 Redeemed during the year (2,609,657.600) (2,556,947.412) (26,097) (25,570) (2,695,503.085) (3,464,405.147) (26,955) (34,644) Outstanding, end of year 10,207,056.766 6,722,402.606 102,070 67,224 12,855,245.154 13,667,952.998 128,552 136,679 Dividend Plan Outstanding, beginning of year 23,410,634.391 18,503,354.585 234,106 185,033 34,254,892.571 40,775,584.250 342,549 407,756 Issued during the year 9,251,487.589 8,142,426.468 92,515 81,424 4,108,406.139 12,055,061.487 41,084 120,551 Redeemed during the year (6,651,615.807) (3,235,146.662) (66,515) (32,351) (8,534,573.783) (18,575,753.166) (85,345) (185,758) Outstanding, end of year 26,010,506.173 23,410,634.391 260,106 234,106 29,828,724.927 34,254,892.571 298,288 342,549 Total Outstanding, beginning of year 30,133,036.997 24,683,403.902 301,330 246,834 47,922,845.569 55,837,948.437 479,228 558,379 Issued during the year 15,345,799.349 11,241,727.169 153,458 112,417 5,991,201.380 14,125,055.445 59,912 141,251 Redeemed during the year (9,261,273.407) (5,792,094.074) (92,612) (57,921) (11,230,076.868) (22,040,158.313) (112,300) (220,402) Outstanding, end of year 36,217,562.939 30,133,036.997 362,176 301,330 42,683,970.081 47,922,845.569 426,840 479,228 (THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK)
SCHEDULES TO THE BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 Schedules March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 4. RESERVES AND SURPLUS Unrealised appreciation reserve Balance, beginning of year 391,982 640,426 Change in net unrealised appreciation in value of investments 87,918 391,982 182,500 640,426 Balance, end of year 479,900 391,982 822,926 640,426 Retained surplus Balance, beginning of year 492,465 348,861 2,472,815 2,268,418 Net surplus / ( Deficit ) transferred from revenue account 211,092 143,604 13,288 204,397 Balance, end of year 703,557 492,465 2,486,103 2,472,815 Total reserves and surplus 1,183,457 884,447 3,309,029 3,113,241 5. CURRENT LIABILITIES AND PROVISIONS Current Liabilities Management fees 1,585 1,122 1,590 1,590 Trusteeship fees 4 2 4 4 Load pending utilisation 17,688 15,267 24,436 23,383 Sundry creditors for units redeemed by investors 23,457 6,043 1,857 17,084 Advance money received, units pending allotment 427 Dividend payable * * Unclaimed distributed income 345 373 2,372 2,484 Unclaimed redemption payable 5 4 94 90 Other current liabilities 3,823 4,362 4,050 6,736 46,907 27,173 34,403 51,798 * Amount is less than rupee one thousand. 6. INVESTMENTS (i) (ii) The investments of the Scheme are registered in the name of the Fund for the benefit of the Scheme's unitholders. Aggregate appreciation and depreciation in the value of investmentsare as follows: Listed Securities / Securities Awaited Listing / Unlisted Securities / Foreign Securities: (Equity shares / Preference shares / Foreign securities) appreciation 502,075 395,338 913,860 734,855 depreciation 24,602 3,356 90,934 94,429 Listed Securities / Securities Awaited Listing: (Equity linked debentures / Other debentures and bonds / Securitised debt securities) appreciation 2,427 depreciation (iii) The aggregate value of investments purchased and sold / redeemedby the Scheme during the year and these amounts as a percentageof average daily net assets are as follows: Purchases amount 364,661 308,279 18,040 30,926 as a percentage of average daily net assets 27.56 48.85 1.27 2.63 Sales / redemptions amount 164,315 226,068 242,780 238,960 as a percentage of average daily net assets 12.42 35.82 17.08 20.34 (iv) Amount of Debentures and bonds Listed/ Awaiting listing on Stock Exchanges not traded as on the date of financial statement. 2,427 (iv) During the year, the Scheme has invested in the equity shares / debentures and bonds of certain companies, which have invested in some of the schemes of the Fund in excess of five percent of those schemes' Net Assets. The Scheme's investments in these com
SCHEDULES TO THE BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 Schedules March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 7. OTHER CURRENT ASSETS Cash and Bank Balance Balances with banks in current accounts 2,855 3,770 990 201 Unclaimed dividend bank account 345 373 2,372 2,484 3,200 4,143 3,362 2,685 CBLO/ Reverse Repo Lending Collateralised securities lending 238,421 124,480 111,711 94,280 238,421 124,480 111,711 94,280 Others Sundry debtors for units issued to investors 141 9,900 640 3,168 Outstanding and accrued income 721 16 25 12 Margin Money 3,770 2,130 2,070 1,180 4,632 12,046 2,735 4,360 TOTAL 246,253 140,669 117,808 101,325 8. ACCUMULATED UNIT DISCOUNT, NET Balance, beginning of year 150,419 237,099 2,192,703 2,125,391 Net premiumon ( issue) / redemption of units (80,627) (86,680) 17,015 67,312 Balance, end of year 69,792 150,419 2,209,718 2,192,703 9. INTEREST Collateralised lending / Reverse repo 9,987 2,071 4,385 1,734 9,987 2,071 4,385 1,734 10. INCOME AND EXPENDITURE The total incomeand expenditureand these amounts as a percentage of the Scheme s average daily net assets on an annualised basis are provided below: Income ( net of loss on sale of investments) amount 88,687 87,660 163,424 (107,472) as a percentage of average daily net assets 6.70 13.89 11.50 (9.15) Expenditure amount 29,701 15,752 31,768 28,769 as a percentage of average daily net assets 2.24 2.50 2.23 2.45 Management Fees (including service tax) amount 17,350 8,687 18,429 15,577 as a percentage of average daily net assets 1.31 1.38 1.30 1.33 Trusteeship Fees (including service tax) amount 40 19 43 35 as a percentage of average daily net assets 0.003 0.003 0.003 0.003
SCHEDULES TO THE BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 Schedules March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 11. 25(8) DISCLOSURES Commission to distributors includes payments made to the following companies as commission for procuring unit subscriptions for the Scheme. ITI Capital Markets Limited 35 25 163 148 Mahindra & Mahindra Financial Services Limited 4 6 35 25 167 154 ITI Capital Markets Limited is a wholly owned subsidiary of Franklin Templeton Asset Management (India) Private Limited. Mahindra & Mahindra Financial Services Limited Associate w.e.f October 08,2010) (ceased to be an This represents the amount paid / payable for the year and does not necessarily reflect the amount charged to the Scheme's revenue account. The commissionis at rates similar to those offered to other distributors by the Scheme. 12. NET ASSET VALUE Net asset value of each unit of Rs. 10 of the Scheme Growth Plan (Rs) 61.5658 54.1756 69.0796 55.2711 Dividend Plan (Rs) 32.5805 28.6695 21.3927 18.8097 The net asset value of the Scheme's unit is determinedafter including unit capital and any reserves and surplus, and reducing net deficit and accumulated unit discount, if any. 13. INCOME DISTRIBUTION: In case the SchemehavingNet Gain / Losses for the period after adjustment of income equalisation lower than the amount of distributed income, the income is distributed to its unitholders out of the distributable surplus available with the respective Schemes, which consists of the net gain / losses for the period after adjustment of income equalisation and the retained earnings / accumulated reserves of earlier periods. 14. PRIOR YEAR COMPARATIVES Prior year amounts have been reclassified, whereverapplicable, to conform to the current year's presentation. (THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK)
15. SUPPLEMENTARY INVESTMENT PORTFOLIO INFORMATION AND INDUSTRYWISE CLASSIFICATION Details of investment portfolio and industrywise classificationof the Scheme's investments in each category of investments as at March 31, 2011 are presented below. The industry and company exposures are stated as a percentage of the Scheme's net assets as at March 31, 2011, as well as the aggregate investments in each investment category. Franklin Pharma Fund Industry and Company Particular Quantity Amount Percentage to Net Assets Percentage to Investment Category Equity and Equity Related Listed/Awaiting listing on Stock Exchanges Consumer Non Durables 54,120 32,323 2.19 2.54 Zydus Wellness Limited 54,120 32,323 2.19 2.54 Healthcare Services 169,070 63,669 4.31 4.99 Apollo Hospitals Enterprises Limited 119,070 56,106 3.80 4.40 Fortis Healthcare Limited 50,000 7,563 0.51 0.59 Pharmaceuticals 2,951,977 1,178,076 79.81 92.47 Cadila Healthcare Limited 169,038 133,760 9.06 10.50 Dr. Reddy's Laboratories Limited 81,000 132,723 8.99 10.42 Lupin Limited 255,000 105,914 7.18 8.31 Torrent Pharmaceuticals Limited 170,000 98,320 6.66 7.72 Ipca Laboratories Limited 300,000 90,480 6.13 7.10 Pfizer Limited 65,000 79,622 5.40 6.25 Sun Pharmaceuticals Industries Limited 150,000 66,270 4.49 5.20 Piramal Healthcare Limited 156,123 65,088 4.41 5.11 Cipla Limited 195,000 62,605 4.24 4.91 Ranbaxy Laboratories Limited 108,000 47,957 3.25 3.76 Aurobindo Pharmaceuticals Limited 230,000 45,057 3.05 3.54 Glaxosmithkline Pharmaceuticals Limited 17,569 36,797 2.49 2.89 FDC Limited 350,000 35,595 2.41 2.79 Wyeth Limited 34,000 29,347 1.99 2.30 Aventis Pharma Limited 13,000 26,029 1.76 2.04 Glenmark Pharmaceuticals Limited 77,900 22,092 1.50 1.73 Biocon Limited 60,000 20,637 1.40 1.62 Unichem Laboratories Limited 100,000 18,930 1.28 1.49 Fulford (India) Limited 16,866 15,233 1.03 1.20 Natco Pharma Limited 54,000 14,766 1.00 1.16 Sun Pharma Advanced Research Co. Limited 137,481 9,899 0.67 0.78 Jubilant Life Sciences Limited 50,000 8,245 0.56 0.65 Shasun Pharmaceuticals Limited 100,000 5,195 0.35 0.41 Dishman Pharmaceuticals & Chemicals Limited 50,000 5,094 0.35 0.40 Venus Remedies Limited 12,000 2,421 0.16 0.19 Total 1,274,068 86.31 100.00 Debt Instruments Listed/Awaiting listing on Stock Exchanges (a) NonTraded/Thinly Traded Scrips 486,000 2,427 0.16 100.00 Dr Reddy's Laboratories Limited 486,000 2,427 0.16 100.00 Total 2,427 0.16 100.00 OTHER CURRENT ASSETS 246,253 16.69 TOTAL ASSETS 1,522,748 103.16 LESS : CURRENT LIABILITY 46,907 3.16 NET ASSETS 1,475,841 100.00
Franklin Infotech Fund Industry and Company Particular Quantity Amount Percentage to Net Assets Percentage to Investment Category Equity and Equity Related Listed/Awaiting listing on Stock Exchanges Software 1,603,166 1,442,339 94.51 100.00 Infosys Technologies Limited 240,000 776,820 50.90 53.86 Tata Consultancy Services Limited 330,000 390,225 25.57 27.06 Wipro Limited 316,666 151,461 9.92 10.50 Oracle Financial Services Software Limited 24,000 47,618 3.12 3.30 Infotech Enterprises Limited 200,000 32,160 2.11 2.23 Eclerx Services Limited 40,000 25,786 1.69 1.79 Firstsource Solutions Limited 400,000 7,200 0.47 0.50 Mphasis Limited 10,000 4,156 0.27 0.29 MindTree Limited 10,000 3,930 0.26 0.27 Mastek Limited 15,000 1,826 0.12 0.13 Intrasoft Technologies Limited 17,500 1,157 0.08 0.07 Total 1,603,166 1,442,339 94.51 100.00 (b) Unlisted** Collabera Solutions Private Limited (Formerly known as GCI Solutions) 970,000 407.00 0.03 100.00 * Total 970,000 407.00 0.03 100.00 OTHER CURRENT ASSETS 117,808 7.72 TOTAL ASSETS 1,560,554 102.26 LESS : CURRENT LIABILITIES 34,403 2.26 NET ASSETS 1,526,151 100.00 * Less than 0.01% ** Unlisted / Thinly Traded Securties ++Less than rupees one thousand
SCHEDULES TO THE BALANCE SHEET AND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 March 31, 2011 March 31, 2010 March 31, 2011 March 31, 2010 Annexure 1 FDC Limited 35,595 Piramal Healthcare Limited 65,088 Tata Consultancy Services Limited 327,936 Wipro Limited 151,461 134,292 100,683 151,461 462,228 The aggregate purchases (other than by interschemetransfer/sale and those already disclosed earlier) made by the Scheme in these companies, during a period of one year before or after the date of the companies' investmentare as follows: FDC Limited 31,107 Piramal Healthcare Limited 77,862 108,969
PER UNIT STATISTICS C4619 C4617 Year ended Year ended Year ended Year ended Year ended Year ended March 31, 2011 March 31, 2010 March 31, 2009 March 31, 2011 March 31, 2010 March 31, 2009 (a) Net Asset value, per unit Growth 61.5658 54.1756 22.4516 69.0796 55.2711 55.2711 Annual Dividend 32.5805 28.6695 11.8813 21.3927 18.8097 18.8097 (b) Gross Income: i) Income other than profit on sale of investment, per unit 0.62 0.23 0.43 0.67 0.32 0.32 ii) Profit / (Loss) on interscheme sale/transfer of investment, per unit iii) Profit / (Loss) on sale of investment to third party, per unit 1.83 2.68 0.74 3.16 (2.57) (2.57) (c) (d) Aggregate of expense, write offs, amortisation and charges, per unit (0.83) (0.52) (0.41) (0.74) (0.60) (0.60) Net unrealised appreciation/(depreciation) in value of investments 13.25 14.46 (1.77) 19.28 20.71 20.71 (e) Net Income, per unit (including appreciation/depreciation) 14.87 16.85 (1.01) 22.37 17.86 17.86 (f) i) Highest traded price N.A. N.A. N.A. N.A. N.A. N.A. ii) Lowest traded price N.A. N.A. N.A. N.A. N.A. N.A. iii) Highest repurchase price/nav * Growth 65.9410 53.6338 30.0348 72.6568 57.8079 57.8079 Annual Dividend 34.8958 28.3828 15.8944 22.6058 19.6730 19.6730 iv) Highest resale price * Growth 65.9410 54.1756 31.0208 72.6568 58.3918 58.3918 Annual Dividend 34.8958 28.6695 16.4161 22.6058 19.8717 19.8717 v) Lowest repurchase price/nav * Growth 53.9488 21.9808 20.1901 51.8412 24.4998 24.4998 Annual Dividend 28.5495 11.6322 10.6845 17.6425 8.4949 8.4949 vi) Lowest resale price * Growth 53.9488 22.7024 20.8529 51.8412 25.3041 25.3041 Annual Dividend 28.5495 12.0141 11.0352 17.6425 8.7738 8.7738 Ratio of Expenses to Average Net Assets 2.24 2.50 2.50 2.23 2.45 2.45 Ratio of Gross Income to Average Net Assets 6.70 13.89 7.05 11.50 (9.15) (9.15) (g) P.E. Ratio N.A. N.A. N.A. N.A. N.A. N.A. * Per unit calculation is based on number of units at the end of the year. The highest and lowest resale price has been determined, after adding to the NAV, the maximum entry load applicable.