Abridged Annual Report For 2013-2014 FRANKLIN TEMPLETON MUTUAL FUND - Franklin Templeton Fixed Tenure Fund Series XV Head Office : Indiabulls Finance Center, Tower 2, 12th and 13th Floor, Senapati Bapat Marg, Elphinstone (West), Mumbai - 400 013. Trustee Report to Investors Dear Investor, The Directors of the Trustee Company have the pleasure of presenting before you the Eighteenth Annual Report of Franklin Templeton Mutual Fund ( Mutual Fund / FTMF ) for the financial year 2013-14. 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 04, 1996 in accordance with the provisions of the Indian Trusts Act, 1882 and the Deed of Trust is registered under the Indian Registration Act, 1908. 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 05, 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 vide Registration No. MF/026/96/8 dated February 19, 1996. 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$ 908.3 bln (approximately Rs. 5,449,800 crore) in assets under management as on May 31, 2014 and around 24.4 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, South Korea, India, China, UAE, Malaysia, Japan, 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 400013 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, SEBI (Mutual Funds) Regulations, 1996 (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*, Managing Director, 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 400013 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, 1996. 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 industry saw fewer inflows compared to previous year. However, there was increase in value of assets managed (AAUM) by the industry on account changes in valuation. The industry also saw launch of many closed end equity funds on the expectation of revival of the economy. During the year, no schemes were launched by Franklin Templeton. However, the asset allocation pattern of Templeton India Treasury Management Account (TITMA)* was changed w.e.f. June 12, 2013 to allow greater flexibility for the investment team and to help them take advantage of the opportunities in the fixed income / money market space. *Templeton India Treasury Management Account (TITMA) will be renamed as Franklin India Treasury Management Account (FITMA) w.e.f. June 30, 2014. Significant regulatory change with respect to Product Labeling of schemes was implemented with effect from July 01, 2013. Further, AMFI Best Practice on Employee Unique Identification Number (EUIN) was also implemented during the year. During FY14, Franklin Templeton saw a good progress in terms of investment performance, investor communication and product innovation. The firm continuously aims to deliver consistent long term performance. The total assets under management (AUM) grew by 23.8% in FY14, as against industry growth of 17.7% over the same period. The growth in AUM for Franklin Templeton has been driven by growth in income, liquid and overseas feeder fund assets. (AUM Source: Amfi website) Our focus has been to provide relevant and well managed products for Indian investors. During the year, an extensive review of existing product Page - 1
bouquet was conducted in order to ensure product relevance and fill the gaps wherever observed. The AMC has put in efforts to bring new products such as a European feeder fund and a Banking & PSU Debt Fund, while also trying to restructure some of the existing offerings. During the year, AMC undertook various investor education and awareness initiatives including launch of Franklin Templeton Academy online portal (www.franklintempletonacademy.com). Till date we have published 22 videos, 16 web banners and 220 quiz questions in five languages. Since the date of launching, this initiative has already garnered more than 3.81 lac website visits via various modes such as websites, micro sites, and social media. We are happy to state that, till May 21, 2014, nearly 53,000 video views have been recorded on the site. Franklin Templeton continues to use social media and other digital assets to promote the brand. We have also launched a mobile (launched in April 2013) and tablet website (launched in January 2014) to ensure that existing and prospective clients have updated information available to them across different platforms. With an endeavor to promote mutual funds to the smaller towns and cities, Franklin Templeton is launching a District Adoption Program in ten districts in the country. Scheme performance, future outlook and operations of the schemes: The fund is a three year closed end fund investing in high quality fixed income securities in line with portfolio duration alongside taking marginal exposure to equities. Both the debt and equity portfolios are conservatively managed. On the equities front, the closed end nature of the fund helps the fund managers take a long term view on investments. Typically, the fund holds the debt investments till maturity, in order to reduce/minimize interest rate risks. The scheme matured on February 6, 2014 and its performance since inception to maturity is summarized below Plan/Benchmark Franklin Templeton Fixed Tenure Fund Series XV Period ended February 6, 2014 Since Inception* 7.18% 7.37% Scheme Benchmark^ 4.04% 6.60% Crisil 10-year Gilt Index (additional benchmark) -1.70% 4.76% ^ 20% S&P CNX 500 + 70% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index *compounded & annualized returns. Inception Date: 07 February, 2011. Returns mentioned above are for the Growth Option are as on 6th February 2014. Investor Services: As on March 31, 2014, the Mutual Fund served nearly 18 lakh active investor accounts through its 34 branches and 120 offices of our collection partners across India. We continue leveraging technology to provide enhanced customer and distributor satisfaction: Launch of account access sections (HPIN/DPIN facility) on our mobile site m.franklintempleton.in Web Call back facility enabled for investors and distributors on our public website Activation of SMS transaction alerts for all mobile numbers registered with us. The Bangalore service team was awarded the The Best Customer Service Team by the Karnataka Association of Mutual Fund Advisors (KAMFA) for the third year in succession. Further, in the interest of all stakeholders, various initiatives were taken to reduce cost through effective utilisation of infrastructure and resources. Investor Complaints Report: The Investor Complaints Report of FTMF for the year 2013-14 is given in Annexure to this Report. Significant regulatory changes: During the year, SEBI Board approved Long Term Policy for Mutual Funds in India, the first of its kind for mutual funds. The objective of the policy is to achieve sustainable growth of the mutual fund industry and mobilise household savings for the growth of the economy. The policy includes different aspects like enhancing the reach and promoting financial inclusion, tax treatment, investor education & awareness, etc. The policy also includes certain tax related proposals like enhancing limit for tax exemption and introduction of retirement linked plans. However, few of these proposals require approval from Central Government. In line with the aforesaid policy, SEBI has enhanced disclosure requirements for mutual funds. Mutual funds are required to disclose details on AUM based on different parameters. Further, in order to enhance corporate governance standards, mutual funds are now required to disclose voting pattern along with rationale for votes cast in respect of certain proposals of investee company. Mutual funds are required to introduce investor awareness campaign in regional languages through print and electronic media. SEBI has also asked mutual funds to explore alternative distribution strategies especially through internet and mobile. Investors are requested to note: As part of the brand evolution project, the global team at Franklin Templeton had undertaken a strategic review of our master brand, sub-brand, and global product naming conventions. This review led to recommendations to modify our brand architecture to simplify and standardize our branding and product naming conventions around the world. As a result, we will be undergoing changes in some of our fund names with effect from June 30th, 2014. Please note that only fund names are changing there are no changes in investment objectives or the way in which the funds are managed. SEBI revised the format of the KYC form to facilitate uniform KYC for the entire financial sector and avoid repeated modifications in the KRA system. Investors are required to provide certain information like gross annual income, networth, etc. in the application form of the concerned intermediary. Valuation policy and related disclosures are available on our website for reference of the investors. Responsibility of the Trustees: The Trustee is the exclusive owner of the Trust fund and holds the same in trust for the benefit of the unitholders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks to ensure that the 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 March 31, 2014, the Revenue Account for the period ended March 31, 2014 and the Auditors Report thereon are annexed to this Report. As mentioned in the Auditors Report the accounting policies are in accordance with the 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: The fund is a closed end income scheme to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities that are maturing on or before the maturity of the scheme along with capital appreciation through equity exposure. Page - 2
Unclaimed dividends and redemptions of more than 90 days as on March 31, 2014: Unclaimed Dividend* Unclaimed Redemption* AMOUNT (Rs.) COUNT AMOUNT (Rs.) COUNT 1,415,595.24 27 307,870.75 1 *Includes demand drafts lying unclaimed with the banks which were cancelled and brought back in the respective scheme books. 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, Custodians, 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: June 27, 2014 Annexure to the Trustee Report Franklin Templeton Mutual Fund Investor Complaints Report for the Financial Year 2013-14 Total Number of Folios: 17,92,966 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 Resolved 30-60 days Action on (a) and (b) 60-180 days Beyond 180 days Non Actionable * Pending I A Non receipt of Dividend on Units 20 74 85 6 1 1 0 1 0 0 0 I B I C I D II A II B II C II D Interest on delayed payment of Dividend Non receipt of Redemption Proceeds Interest on delayed payment of Redemption Non receipt of Statement of Account/Unit Certificate Discrepancy in Statement of Account Data Corrections in Investor details Non receipt of Annual Report/ Abridged Summary 0-3 mths 3-6 mths 6-9 mths 9-12 mths 0 1 1 0 0 0 0 0 0 0 0 3 98 93 4 0 0 0 4 0 0 0 1 5 5 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 30 30 0 0 0 0 0 0 0 0 14 1123 1110 1 0 0 0 26 0 0 0 0 0 0 0 0 0 0 0 0 0 0 III A Wrong switch between Schemes 0 7 7 0 0 0 0 0 0 0 0 III B Unauthorized switch between Schemes 2 2 2 2 0 0 0 0 0 0 0 III C Deviation from Scheme attributes 0 0 0 0 0 0 0 0 0 0 0 III D Wrong or excess charges/load 1 10 11 0 0 0 0 0 0 0 0 III E Non updation of changes viz. address, PAN, bank details, nomination, etc 4 153 150 0 0 0 0 7 0 0 0 IV Others 31 1042 1026 5 2 1 0 38 0 0 1 Total 76 2546 2521 19 3 2 0 76 0 0 1 # including against its authorized persons/ distributors/ employees, etc. *Non actionable means the complaint that are incomplete / outside the scope of the mutual fund Note: 99% 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 on May 22, 2014. Page - 3
Report of the Auditors To the Trustees of FRANKLIN TEMPLETON MUTUAL FUND - FRANKLIN TEMPLETON FIXED TENURE FUNDS SERIES XV The accompanying abridged financial statements, which comprise of the abridged balance sheet as at 06 February 2014 and the abridged revenue account for the period ended 06 February 2014, and related notes of Franklin Templeton Fixed Tenure Fund - Series XV( the Scheme ) are derived from the audited financial statements of the Scheme as at 06 February 2014 and for the period ended 06 February 2014. We expressed an unmodified audit opinion on those financial statements in our report dated 27 June 2014. These 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 ) and as per the format prescribed by SEBI vide circular number SEBI/IMD/CIR No. 8/132968/2008 dated July 24, 2008 and are derived from the audited financial statements as at 06 February 2014 and for the period ended 06 February 2014, prepared in accordance with the accounting policies and standards specified in the Ninth Schedule to the SEBI Regulations and Generally Accepted Accounting Principles in India to the extent applicable and covered by our report of even date to the Trustees of Franklin Templeton Mutual Fund. The abridged financial statements do not contain all the disclosures required by the accounting principles generally accepted in India, including the accounting policies and standards specified in the Ninth Schedule to the SEBI Regulations. Reading the abridged financial statements, therefore, is not a substitute for reading the audited financial statements of the Scheme. Management s Responsibility for the Abridged Financial Statements Management of the AMC is responsible for the preparation of the abridged financial statements from the audited financial statements of Franklin Templeton Fixed Tenure Fund - Series XV pursuant to Regulation 56 (1) of the SEBI Regulations, and in accordance with the format prescribed by SEBI vide circular number SEBI/IMD/CIR No. 8/132968/2008 dated July 24, 2008. Auditor s Responsibility Our responsibility is to express an opinion on the abridged financial statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, Engagements to Report on Summary Financial Statements issued by the Institute of Chartered Accountants of India. Opinion In our opinion, the abridged financial statements, derived from the audited financial statements of the Scheme as at 06 February 2014 and for the period ended 06 February 2014 are a fair summary of those financial statements, and are in accordance with the accounting policies and standards specified in the Ninth Schedule to the SEBI Regulations and Generally Accepted Accounting Principles in India to the extent applicable and as per the format prescribed by SEBI circular number SEBI/IMD/CIR No. 8/132968/2008 dated July 24, 2008. For S. R. Batliboi & Co. LLP ICAI Firm registration number: 301003E Chartered Accountants per Shrawan Jalan Partner Membership No.: 102102 Place: Mumbai Dated: 27 June 2014 Abridged Balance Sheet as at February 6, 2014 LIABILITIES Rupees in Lakhs As at As at February 6, March 31, 2014 2013 1 Unit Capital 8,580.95 8,580.95 2 Reserves and Surplus 2.1 Unrealised Appreciation Reserve - 180.42 2.2 Retained Surplus 1,757.50 888.18 3 Current Liabilities and Provisions 3.1 Current Liabilities 45.55 31.36 TOTAL 10,384.00 9,680.91 ASSETS 1 Investments 1.1 Listed Securities 1.1.1 Equity Shares - 1,796.29 1.1.2 Other Debentures and Bonds - 5,176.84 1.2 Securities Awaiting Listing 1.2.1 Equity Shares -* - 1.3 Commercial Papers - 1,965.33 1.4 Certificate of Deposits - 398.93 2 Other Current Assets 2.1 Cash and Bank Balances 21.36 3.88 2.2 CBLO/ Reverse Repo Lending 10,360.36 163.34 2.3 Others 2.28 176.30 TOTAL 10,384.00 9,680.91 *Amount Less than Rs. 1000` Notes to Accounts - Annexure I Page - 4
Abridged Revenue Account for the Period ended February 6, 2014 1 INCOME Rupees in Lakhs Period Ended Year ended February 6, March 31, 2014 2013 1.1 Dividend 30.28 23.71 1.2 Interest 625.52 685.26 1.3 Realised Gains /(Losses) on Interscheme Sale of Investments - 0.07 1.4 Realised Gains / (Losses) on External sale / redemption of investments 410.48 29.16 2 EXPENSES ( A ) 1,066.28 738.20 2.1 Management Fees 136.24 132.08 2.2 Service Tax on Management Fees 16.84 16.33 2.3 Transfer Agents Fees and Expenses 3.30 4.39 2.4 Custodian Fees 0.84 1.18 2.5 Trusteeship Fees 0.26 0.28 2.6 Commission to Agents 33.99 41.46 2.7 Marketing and Distribution Expenses 0.04 0.09 2.8 Investor Education Expense 1.71 0.97 2.9 Audit Fees 0.10 0.20 2.10 Other Operating Expenses 3.34 4.97 2.11 Expenses Written Back during the Period/ Year - (7.38) 196.66 201.95 ( B ) 196.66 194.57 3 NET REALISED GAINS / (LOSSES) THE PERIOD/YEAR (A -B = C) 869.62 543.63 4 Change in Unrealised Depreciation in value of Investments ( D ) 0.30 (17.02) 5 NET GAINS / (LOSSES) FOR THE PERIOD/YEAR (C -D = E) 869.32 560.65 6 Change in Unrealised Appreciation in the value of Investments ( F ) (180.42) 114.31 7 NET SURPLUS / (DEFICIT) FOR THE PERIOD/YEAR (E + F = G) 688.90 674.96 7.1 Add: Balance Transfer from Unrealised Appreciation Reserve 180.42 66.11 7.2 Less: Balance Transfer to Unrealised Appreciation Reserve - 180.42 8 Total 869.32 560.65 9 Dividend Appropriation 9.1 Income Distributed during the Period/Year - (122.38) 9.2 Tax on Income Distributed during the Period/Year - (17.96) 10 Retained Surplus carried forward to Balance sheet 869.32 420.31 Notes to Accounts - Annexure I Key Statistics for the Period ended Februray 6, 2014 1 NAV per unit (Rs.): Open: Period ended 6-Feb-14 Year ended 31-Mar-13 Growth Option 11.5535* 10.7572* Dividend Option 10.5172* 10.3035* High: Growth Option 12.3783** 11.6445 Dividend Option 11.2680** 11.1533 Low: Growth Option 11.5472 10.6696 Dividend Option 10.5115 10.2195 End: Growth Option 12.3783** 11.5535* Dividend Option 11.2680** 10.5172* 2 Closing Assets Under Management (Rs in Lakhs) End 10,338.45 9,649.55 Average (AAuM***) 9,977.36 9,474.09 3 Gross income as % of AAuM*** ( Gross Income = (A) in Revenue Account): 12.50% 7.79% 4 Expense Ratio: a. Total Expense as % of AAuM*** 2.31% 2.05% b. Management Fee (including service tax) as % of AAuM*** 1.79% 1.57% 5 Net Income as a percentage of AAuM*** (Net Income = (C) in Revenue Account): 8.72% 5.74% 6 Portfolio turnover ratio: 23.84% 9.13% 7 Total Dividend per unit distributed during the period/ year (Rs.): Individuals/HUF - 0.4845 Others - 0.4153 8 Returns: a. Last One Year Scheme Growth Plan: N.A 7.58%@ Benchmark (20% CNX 500 + 70% Crisil Composite Bond Fund Index +10% Crisil Liquid Fund Index) N.A 8.51%@ Standard Benchmark (Crisil 10 year Gilt Index) N.A 11.25%@ b. Since Inception Scheme Growth Plan: 7.37%^^^ 6.97%@ Benchmark (20% CNX 500 + 70% Crisil Composite Bond Fund Index +10% Crisil Liquid Fund Index) 6.60%^^^ 7.38%@ Standard Benchmark (Crisil 10 year Gilt Index) 4.76%^^^ 7.60%@ *Non-business day NAV computed for disclosure purposes only. **Maturity NAV ***Average Assets Under Management @The returns are calculated based on the last declared NAV. ^^^ Returns are calculated upto the Fund/Plan closure/merger date Page - 5
Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Period ended February 6, 2014 Rupees in Lakhs Particulars February 6, 2014 2013 1 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: Issuer Nature of Instrument Amount Aggregate investments by all schemes (includes Equity,debentures and bonds ) February 6, 2014 2013 February 6, 2014 2013 Asian Paints Limited Equity 19.41-14,909.10-1.4 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 / Unlisted Securities / Foreign Securities: (Equity shares / Preference shares / Foreign securities) - appreciation (0.01) 245.91 - depreciation 0.44 83.67 - Net Unrealised Gain/Loss as a percentage of Net assets as on February 6 -* 1.68 Listed Securities / Securities Awaited Listing: (Equity linked debentures / Other debentures and bonds / Securitised debt securities) - appreciation - 18.27 - depreciation - 0.10 - Net Unrealised Gain/Loss as a percentage of Net assets as on February 6-0.19 Money Market Instruments (Commercial papers / Certificate of deposits) - appreciation - - - depreciation - 0.14 - Net Unrealised Gain/Loss as a percentage of Net assets as on February 6 - -* *Less than 0.01% 1.7 Aggregate Value of Purchase and Sale with Percentage to average assets. Purchases - amount 16,291.86 7,736.88 - as a percentage of average daily net assets 163.29 81.66 Sales - amount 2,378.14 864.70 - as a percentage of average daily net assets 23.84 9.13 1.8 Aggregate value of Non-Traded securities and percentage to Net assets: Debt - 5,176.84 Money Market Instruments - 2,364.26 Total - 7,541.10 Percentage of Non Traded securities to Net Assets as on February 6-78.15 2 Details of Transaction with Associates under regulation 25(8) : NIL NIL 3 Large Holdings (over 25% of the NAV of the Scheme) : NIL NIL Page - 6
Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Period ended February 6, 2014 Rupees in Lakhs Particulars February 6, 2014 2013 4 Unit Capital movement during the period/year ended : Units of Rs 10 each fully paid up Quantity Amount February 6, 2014 2013 February 6, 2014 2013 Growth Plan Outstanding, beginning of period/ year 60,292,586.000 60,292,586.000 6,029.26 6,029.26 Issued during the period/ year - - - - Redeemed during the period/ year - - - - Outstanding, end of period/ year 60,292,586.000 60,292,586.000 6,029.26 6,029.26 Dividend Plan Outstanding, beginning of period/ year 25,516,874.000 25,516,874.000 2,551.69 2,551.69 Issued during the period/ year - - - - Redeemed during the period/ year - - - - Outstanding, end of period/ year 25,516,874.000 25,516,874.000 2,551.69 2,551.69 5 These financial statements have been prepared for the period from April 01, 2013 to February 6, 2014, whereas the previous period was from April 01, 2012 to March 31, 2013. The corresponding figures for the previous period are therefore not comparable with those for the current period. The previous period figures have been regrouped/rearranged wherever necessary. 6 Contingent Liability NIL NIL 7 In case where the Surplus / (Deficit) for the period 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 and the retained earnings / accumulated reserves of earlier period(s). 8 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 2013-14 have been disclosed on www.franklintempletonindia.com and in full Annual Report for financial year 2013-14. Page - 7
Book -Post If undelivered, please return to: FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PVT. LTD. C/o Avon Global Solutions Private Limited, No. 42, Jaleel Towers, KB Dasan Road, Teynampet, Chennai - 600018. 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. Investors are requested to note that, as per SEBI guidelines, the Scheme does not offer redemption/repurchase facility before maturity of the Scheme. The Units of the Scheme are listed on NSE. Buying or selling of Units by investors can be done on NSE at market prices. Although Units are listed on NSE, there can be no assurance that an active secondary market will develop or be maintained. Page - 8