Contents Report of the Trustee... 2 Kotak Mahindra 30 Unit Scheme, Kotak Mahindra Balance Unit Scheme 99, Kotak Mahindra Technology Scheme, Kotak Mahindra MNC Scheme, Kotak Mahindra Income Plus Scheme, Kotak Mahindra Global India Scheme, Kotak Equity FOF,, Kotak Opportunities, Kotak Midcap Scheme, Kotak Dynamic Fund of Funds, Kotak Contra Scheme, Kotak Flexi Fund of Funds, Kotak Cash Plus Fund, Kotak Tax Saver Scheme and Kotak Lifestyle Fund Auditors Report... 4 Balance Sheet... 12 Revenue Account... 14 Schedules... 18 Notes to Accounts... 40 Statement of Portfolio Holding... 54 Kotak Bond Unit Scheme 99, Kotak Mahindra Gilt Unit Scheme 98, Kotak Mahindra Liquid Scheme, Kotak Floater Short Term Scheme, Kotak Floater Long Term Scheme and Kotak Flexi Debt Scheme Auditors Report... 75 Balance Sheet... 78 Revenue Account... 80 Schedules... 84 Notes to Accounts... 108 Statement of Portfolio Holding... 117 (8), Series II, Series IV, Series I, Series XII, Series XV,, Series XIV,, Series XVI, Series XVII, Series XXI, Series XVIII, Series 20, Series 13, Series 19, Series 22, Series 23 and Series 25 Auditors Report... 128 Balance Sheet... 137 Revenue Account... 138 Schedules... 140 Notes to Accounts... 171 Statement of Portfolio Holding... 178
Kotak Mahindra Mutual Fund 5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai 400 021. Tel.: 022-6638 4444 Fax : 022-6638 4455 E-mail : mutual@kotak.com Website : www.kotakmutual.com BOARD OF DIRECTORS Kotak Mahindra Trustee Company Limited (Trustee to Kotak Mahindra Mutual Fund) Amit Desai - Chairman Girish Sharedalal Tushar Mavani Chandrashekhar Sathe Anirudha Barwe BOARD OF DIRECTORS Kotak Mahindra Asset Management Company Limited (Investment Manager to Kotak Mahindra Mutual Fund) Uday S. Kotak - Chairman Romesh C. Khanna Sukant Kelkar C. Jayaram Bipin R. Shah Narayan S. A. INVESTOR RELATIONS OFFICER Vinod Venkateswaran Tel: (022) 6638 4466 E-mail : mutual@kotak.com AUDITORS Price Waterhouse Chartered Accountants REGISTRAR Computer Age Management Services Pvt. Limited 158, Rayala Towers, 2nd Floor, Anna Salai, Chennai 600 002. Tel: 044-2852 1839 E-mail : enq_k@camsonline.com 1
Report of the Trustee We have pleasure in presenting the eighth report of Kotak Mahindra Mutual Fund ( the Fund ) for the year ended March 31, 2006, along with the audited financial statements for that period. NEW INITIATIVES TIVES The year saw the launch of several new schemes and facilities, increased distribution reach and market expansion. NEW SCHEMES LAUNCHED during FY 2005-06 Schemes Scheme Type AUM on allotment date (Rs. in cror ores) Kotak Contra Open ended equity scheme 653 Kotak Cash Plus Open ended debt scheme 371 Kotak Flexi Fund of Funds Fund of Funds 352 Kotak Tax Saver Equity Linked Savings Scheme 89 Kotak Lifestyle Open ended equity scheme 877 Series (Cumulative)* Fixed Maturity Plans 2363 Total 4705 * 13 Fixed Maturity Plans were e launched during the year. FACILITIES INTRODUCED: Initiatives were taken in FY 2005 2006 to raise customer service standards. The most notable ones were: We were already offering ECS debit facility for systematic investment plans. During this year, ECS credit facility is introduced for payment of dividends. In addition, direct debit facility with IDBI Bank, Kotak Bank and UTI Bank have been introduced to make investing in the Schemes more convenient. GEOGRAPHICAL EXPANSION: In order to reach out to more and widely dispersed investors, we increased our presence from 35 to 47 locations and empanelled more than 4100 new agents / distributors during the last financial year. We now have a pan India presence across 17 States. We also focused on training agents / distributors for AMFI Certification, enabling them to advise and serve investors better on matters relating to mutual fund investments. PERFORMANCE OF THE SCHEMES OF KOTAK MAHINDRA MUTUAL FUND The total Assets Under Management ( AUM ) of the Fund as on March 31, 2006 were Rs. 10,408 crores, as compared to Rs. 6,649 crores as of March 31, 2005, a growth of 56.53%. The number of Folios as on March 31, 2006 were more than 4,00,000 as compared to little more than 2,00, 000 as of March 31, 2005. During the year under review, the mainstream debt schemes of the Fund continued to do well. Lipper Fund Awards India 2006 has adjudged Kotak Bond Deposit Regular Best Fund over Five years Bond Indian Rupee General. Your company has also received the Best Fund group over three year in the Bond Group from Lipper Fund Awards India 2006. Debt Schemes managed by your company were adjudged second best performing open-ended debt/income Fund 3 year category by ICRA online MFR. The debt schemes managed by your company have received nine Performance awards over the past six years from CNBC, CRISIL, OUTLOOK MONEY, ICRA online and Lipper Fund Awards. All diversified equity Schemes (Kotak 30, Kotak Midcap, Kotak Opportunities) outperformed their respective benchmark indices and were in the top quartile of their peer group. The dividends for several equity schemes as given below were declared during this year: Name of Scheme Dividend per unit Date of declaration Kotak Balance Rs. 0.75 17-May-2005 Rs. 1.00 Rs. 3.50 13-Dec-2005 28-Mar-2006 Kotak 30 Rs. 1.00 06-Jun-2005 Rs. 1.00 28-Dec-2005 Kotak Mid cap Rs. 0.50 25-Aug-2005 Kotak Global India Rs. 2.00 10-Feb-2006 Kotak Opportunities Rs. 4.50 22-Mar-2006 The Balance Sheets as on March 31, 2006 and the Revenue Accounts for the year / period ended March 31, 2006 in respect of all the Schemes/Plans are annexed to this report. For Kotak Mahindra Trustee Company Limited Trustee to Kotak Mahindra Mutual Fund Girish Sharedalal Director Mumbai, June 21, 2006. Anirudha Barwe Director 2
Annexure e to the Report of the Trustee INVESTMENT OBJECTIVES Kotak 30: To generate capital appreciation from a portfolio of predominantly equity and equity related securities with investment in generally not more than 30 stocks. Kotak Gilt: To generate risk-free returns through investments in sovereign securities issued by the Central Government and/or a State Government and/or reverse repos in such securities. Kotak Bond: To create a portfolio of debt of different maturities so as to spread the risk across a wide maturity horizon and different kinds of issuers in the debt market. Kotak Bond Short Term Plan: To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities, so as to spread the risk across different kinds of issuers in the debt market. Kotak Balance: To achieve growth by investing in equity and equity related instruments, balanced with income generation by investing in debt and money market instruments. Kotak Tech: To generate capital appreciation from a portfolio of predominantly equity and equity related securities in the information technology sector. Kotak MNC: To generate capital appreciation from a portfolio of predominantly equity and equity related securities issued by Multinational Companies. Kotak Liquid: To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities, so as to spread the risk across different kinds of issuers in the debt market. Kotak Floater Short Term: To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. Kotak Income Plus Scheme: To enhance returns over a portfolio of debt instruments with a moderate exposure in equity and equity related instruments. Kotak Global India: To generate capital appreciation from a diversified portfolio of predominantly equity and equity related securities issued by Globally Competitive Indian Companies. Kotak Equity FOF: To generate long-term capital appreciation from portfolio created by investing predominantly in open-ended diversified equity schemes of Mutual Funds registered with SEBI. Kotak Opportunities: To generate capital appreciation from a diversified portfolio of equity and equity related securities. Kotak Floater Long Term: To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. Kotak Flexi Debt: To maximise returns through an active management of a portfolio of debt and money market securities. Kotak Midcap: The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity and equity related securities. The Scheme will predominantly invest in midcap stocks. Kotak Dynamic FOF: To provide long-term capital appreciation by investing in a portfolio of diversified large cap equity schemes and liquid schemes of mutual funds registered with SEBI. Kotak Contra: To generate capital appreciation from a diversified portfolio of equity and equity related instruments. Kotak Flexi FOF: The investment objective of the scheme is to provide long-term capital appreciation by investing in a portfolio of diversified equity schemes and liquid / short term/ floating rate schemes/plans of mutual funds registered with SEBI. Kotak Cash Plus: The investment objective of the scheme is to generate income from investment in debt and money market securities and by availing arbitrage opportunities between prices of spot and derivatives markets. Kotak Tax Saver: To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. Kotak Lifestyle: To generate long-term capital appreciation from a portfolio of equity and equity related securities, generally diversified across companies, which are likely to benefit by changing lifestyle and rising consumerism in India. Series: The investment objective of the Scheme(s) is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. STATUTOR TUTORY WARNING: The price and redemption value of the Units, and income from them, can go up or down with the fluctuations in the market value of its underlying investments. LIABILITY AND RESPONSIBILITY OF THE TRUSTEE AND THE SETTLOR The Fund is constituted as a Trust, the Settlor thereof being Kotak Mahindra Bank Limited ( the Settlor ) and the Trustee, Kotak Mahindra Trustee Company Limited ( the Trustee ). The Settlor, having by a Trust Deed vested the Trust in the Trustee with a contribution of Rs. 1 lakh to the corpus, has fulfilled its responsibility. The Fund is held in trust by the Trustee, who is responsible for the trust being managed in accordance with the Trust Deed. The Trustee is accountable for the Fund and the property of the respective Schemes, which it holds in trust for the benefit of the Unitholders in accordance with the Securities and Exchange Board of India ( SEBI ) (Mutual Funds) Regulations, 1996 ( the Regulations ) and the provisions of the Trust Deed. The Trustee has appointed the AMC to manage the Schemes. The Trustee is responsible for ensuring that the AMC fulfils the functions assigned to it under the Regulations and the Trust Deed. The Trustee s liability is discharged if it has performed its duties in good faith and after due diligence and care. The Audit Committee comprising the independent Directors of the Board of Directors of the Trustee has been constituted pursuant to the circular MFD/CIR/010/024/2000 dated January 17, 2000 of SEBI. The scope of the Audit Committee is to periodically review the internal audit systems and the recommendations of the internal and statutory audit reports of the Fund and also to ensure that the rectifications as suggested by internal and external auditors of the Fund are acted upon. The Audit committee has had six meetings in the last financial year. 3
Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Mahindra 30 Unit Scheme (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Mahindra 30 Unit Scheme as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Mahindra Balance Unit Scheme 99 (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Mahindra Balance Unit Scheme 99 as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 4
Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Mahindra Technology Scheme (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Mahindra Technology Scheme as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Mahindra MNC Scheme (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Mahindra MNC Scheme as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 Mumbai June 23, 2006 5
Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Mahindra Income Plus Scheme (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Mahindra Income Plus Scheme as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Mahindra Global India Scheme (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Mahindra Global India Scheme as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 6
Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Equity FOF (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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 the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Equity FOF as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Opportunities (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Opportunities as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 7
Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Midcap Scheme (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Midcap Scheme as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Dynamic Fund of Funds (the Scheme ) as at March 31, 2006, and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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 the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Dynamic Fund of Funds as at March 31, 2006 and its net surplus for the year ended on that date. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 Mumbai June 23, 2006 8
Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Contra Scheme (the Scheme ) as at March 31, 2006, and the related Revenue Account for the period June 2, 2005 to March 31, 2006, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Contra Scheme as at March 31, 2006 and its net surplus for the period June 2, 2005 to March 31, 2006. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the period June 2, 2005 to March 31, 2006, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Flexi Fund of Funds (the Scheme ) as at March 31, 2006, and the related Revenue Account for the period September 9, 2005 to March 31, 2006, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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 the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Flexi Fund of Funds as at March 31, 2006 and its net surplus for the period September 9, 2005 to March 31, 2006. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the period September 9, 2005 to March 31, 2006, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 9
Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Cash Plus Fund (the Scheme ) as at March 31, 2006, and the related Revenue Account for the period September 12, 2005 to March 31, 2006, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Cash Plus Fund as at March 31, 2006 and its net surplus for the period September 12, 2005 to March 31, 2006. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the period September 12, 2005 to March 31, 2006, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 Auditors Report To the Trustee of KOTAK MAHINDRA MUTUAL FUND 1. We have audited the Balance Sheet of Kotak Mahindra Mutual Fund Kotak Tax Saver Scheme (the Scheme ) as at March 31, 2006, and the related Revenue Account for the period September 29, 2005 to March 31, 2006, both of which we have signed under reference to this report. These financial statements are the responsibility of the Trustee of Kotak Mahindra Mutual Fund and the Management of Kotak Mahindra Asset Management Company Limited (the Management ). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have 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. Our procedures included confirmation of securities owned at March 31, 2006 by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us: 4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and also give respectively, a true and fair view of the state of affairs of Kotak Mahindra Mutual Fund Kotak Tax Saver Scheme as at March 31, 2006 and its net surplus for the period September 29, 2005 to March 31, 2006. 4.2 The Balance Sheet as at March 31, 2006 and the Revenue Account for the period September 29, 2005 to March 31, 2006, together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 4.3 The methods used to value non-traded/thinly traded securities as at March 31, 2006 as determined by Kotak Mahindra Asset Management Company Limited under procedures approved by the Trustee of Kotak Mahindra Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable. K. H. Vachha Partner Membership No: F 30798 For and on behalf of PRICE WATERHOUSE Chartered Accountants Mumbai June 23, 2006 10