Abridged Annual Report 2526 TRUSTEE REPORT REPORT FROM AXIS MUTUAL FUND TRUSTEE LIMITED TO THE UNIT HOLDERS OF THE SCHEMES OF AXIS MUTUAL FUND We have pleasure in presenting the Seventh Annual Report of the schemes of Axis Mutual Fund for the period ended March, 26. The net assets under management of the schemes of Axis Mutual Fund as at March, 26 were Rs.,68.9 crores and the average assets under management during the said period was Rs. 5,445.68 crores. The total number of investors under the schemes of Axis Mutual Fund as at March, 26 were 6,65,98. As of March, 26, Axis Asset Management Company Ltd. managed 54 schemes of Axis Mutual Fund which includes: open ended equity linked savings scheme with year lockin (ELSS); 5 open ended equity schemes; close ended equity scheme; 2 open ended Hybrid scheme open ended Gold Exchange Traded Fund; open ended fund of fund scheme; open ended liquid scheme; open ended gilt scheme; 7 open ended debt schemes; capital protection scheme; close ended debt schemes.. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES Brief Comments on Scheme performance: Axis Long Term Equity Fund : Axis Long Term Equity has outperformed its benchmark since inception and also during the last financial year. The fund investments were driven by fundamental research looking for long term secular growth prospects and stock selection was on a bottom s up basis. The fund looks for sustainable business models with good management, market leadership and scalability in business model. Risk assessment is an integral part of selection of a company as part of the portfolio. : has outperformed its benchmark since inception and also during the last financial year. The equity markets were down nearly nine percent for the financial year ending March 26. The markets were affected by weaker than expected domestic growth as well as global growth concerns (especially China). The funds investments were driven by fundamental research approach and stock selection was on a bottom s up basis. The fund has an actively managed portfolio of companies with strong and sustainable growth, with a bias for large caps while risk being a key variable. Axis Midcap Fund : The scheme has outperformed its benchmark since inception although during the year returns it underperformed the benchmark. The equity markets were down nearly nine percent for the financial year ending March 26.The markets were affected by weaker than expected domestic growth as well as global growth concerns (especially China). Mid cap stocks outperformed largecaps during the year. The investment approach was driven on fundamental research process. The portfolio targets to invest in high quality business with scalable and sustainable models with the underlying philosophy, Today s Midcap, Tomorrow s leader. Axis Focused 25 Fund : Axis Focused 25 Fund has outperformed its benchmark since inception and also during the last financial year. The equity markets were down nearly nine percent for the financial year ending March 26. The markets were affected by weaker than expected domestic growth as well as global growth concerns (especially China).The fund has an actively managed portfolio and invests in upto 25 stocks, primarily out of the top 2 by market capitalization in the Indian market. The fund uses a fundamental research process to identify and invest in companies with high quality sustainable models over the medium to long term. Axis Enhanced Arbitrage Fund : The scheme s performance has been affected by the weak spreads in the future market as more money has flown into the segment. The Direct Plan of the scheme underperformed its benchmark over the last financial year. The performances of plans of the scheme are different to the extent of difference in their total expense ratio. Axis Equity Saver Fund : The scheme was launched in this financial year. The scheme seeks to provide capital appreciation and income distribution by using equity and equity related instruments, arbitrage opportunities and debt and money market instruments. The performance of the scheme was affected by the correction in equity markets since the launch of the fund. Axis Small Cap Fund : Axis Small Cap Fund has outperformed its benchmark since inception and also during the last financial year. The equity markets were down nearly nine percent for the financial year ending March 26. The markets were affected by weaker than expected domestic growth as well as global growth concerns (especially China). Small cap stocks gave negative returns but outperformed large cap stocks. The investment approach was driven on a fundamental research process to identify and invest in companies with high quality sustainable models over the medium to long term. Axis Triple Advantage Fund : The scheme invests across three asset classes, viz. debt, equity and gold. While returns of debt and gold were positive last year, equity markets gave negative returns over the course of the year, which again brought out the importance of asset allocation that is provided by this fund. Performance of the plans of the scheme are different to the extent of the difference in expense ratios. Axis Children s Gift Fund : The scheme was launched in this financial year. The Scheme is an openended balanced scheme that seeks to generate income by investing in debt & money market instruments along with longterm capital appreciation through investments in equity & equity related instruments. The performance of the scheme was affected by the correction in equity markets since the launch of the scheme. Axis Gold ETF : The scheme aims to deliver returns consistent with returns on gold and is invested largely in gold. The scheme has performed in line with the objectives. As the scheme is largely passively managed, comparison with benchmark is not relevant. Axis Gold Fund : The scheme aims to deliver returns consistent with returns on gold by investing in Axis Gold ETF. The scheme has underperformed the gold index because of the deviation in the price of physical gold and the traded price of gold. As the scheme is largely passively managed, comparison with benchmark is not relevant. Axis Liquid Fund : During the year, interest rates broadly declined on the back of lower inflation and 75 basis point policy rate cuts by the Reserve Bank of India. The scheme outperformed its benchmark for the year. The scheme has maintained its portfolio strategy of low volatility and high quality during the course of the year. Performances of the plans of the scheme are different to the extent of the difference in expense ratios. Axis Constant Maturity Year Fund : The scheme aims to deliver returns consistent with returns on year government securities. The scheme has performed in line with the objectives. As the scheme is largely passively managed, comparison with benchmark is not relevant. Axis Treasury Advantage Fund : During the year, interest rates broadly declined on the back of lower inflation and 75 basis point policy rate cuts by the Reserve Bank of India. The scheme maintained a higher average maturity this year in comparison to the previous year to take advantage of the falling interest rate environment. The scheme outperformed its benchmark during the year. Performances of the plans of the scheme are different to the extent of the difference in expense ratios. Axis Short Term Fund : During the year, interest rates broadly declined on the back of lower inflation and 75 basis point policy rate cuts by the Reserve Bank of India. The scheme maintained a higher average maturity to take advantage of the falling interest rate environment. The fund maintains a high quality portfolio that is focused on highly rated issuers. The Direct Plan of the scheme outperformed its benchmark during the year. Performances of the plans of the schemes are different to the extent of the difference in expense ratios. Axis Dynamic Bond Fund : During the year, interest rates broadly declined on the back of lower inflation and 75 basis point policy rate cuts by the Reserve Bank of India. The scheme maintained a higher average duration this year to take advantage of the falling interest rate environment. The Direct Plan of the scheme underperformed its benchmark marginally during the year. Performances of the other plans are different to the extent of the difference in expense ratios. Axis Income Fund : During the year, interest rates broadly declined on the back of lower inflation and 75 basis point policy rate cuts by the Reserve Bank of India. The scheme maintained a higher average duration this year to take advantage of the falling interest rate environment. The Direct Plan of the scheme underperformed its benchmark during the year, however the scheme has outperformed its benchmark over longer periods. Performances of the plans of the schemes are different to the extent of the difference in expense ratios. Axis Banking Debt Fund : The scheme is invested in debt and money market instruments issued by banks and financial institutions. As such it maintains a high quality and low duration relative to its benchmark. The Direct Plan of the scheme outperformed its benchmark during the year. Performances of the plans of the schemes are different to the extent of the difference in expense ratios. Axis Fixed Income Opportunities Fund : The scheme was launched in the previous financial year. The scheme invests in a mix of government and corporate bonds while maintaining a short duration profile. The scheme maintained a stable duration profile targeting the short term segment to take advantage of the falling interest rate environment over the course of the year. The Direct Plan of the scheme outperformed its benchmark since inception and the last financial year. Performances of the plans of the scheme are different to the extent of the difference in expense ratios. Axis Income Saver : The scheme invests largely in short term debt and a mix of large and midcap equities. While debt market delivered reasonable returns, equity markets were down nearly 9% over the course of the year. The scheme maintained a higher average maturity to take advantage of the falling interest rate environment and dynamically adjusted its equity allocation using the asset allocation model to ensure that it met its drawdown objectives. Performances of the plans of the schemes are different to the extent of the difference in expense ratios. Axis Capital Protection Oriented Fund Series 5 : The corpus of the scheme was invested in line with their investment objectives. The schemes are passively managed and performance comparison with benchmark is not appropriate in these cases.
Abridged Annual Report 2526 TRUSTEE REPORT (Contd.) The yield curve continues to show a large positive slope relative to the flat curve that existed year ago. The steepness is presenting an opportunity in the 5 year corporate bond segment. While further policy rate cuts are likely limited, better transmission and changed liquidity stance, should lead to lower market rates over the next 2 months. 2. BRIEF BACKGROUND OF SPONSORS, FUND, THE TRUSTEE COMPANY AND AMC a. Axis Mutual Fund : Axis Mutual Fund ( the Mutual Fund / the Fund ) was set up as a Trust by the Settlor, Axis Bank Limited ( Axis Bank ) on June 27, 29 with Axis Mutual Fund Trustee Limited ( the Trustee Company ) as a Trustee in accordance with the provisions of the Indian Trust Act, 882 and is duly registered under the Indian Registration Act, 98. The Trustee has entered into an Investment Management Agreement dated June 27, 29 with Axis Asset Management Company Limited ( Axis AMC / the AMC ) to function as the Investment Manager for all the schemes of the Fund. The Fund was registered with SEBI on September 4, 29 vide registration No. MF/6/9/2. b. Axis Mutual Fund Trustee Limited : The Trustee is the exclusive owner of the 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 Deed of Trust. The Trustee seeks to ensure that the Fund and the schemes floated thereunder are managed by the AMC in accordance with the Deed of Trust, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. The main responsibility of the Trustee is to safeguard the interest of the Unit holders. c. Sponsor : Axis MF is sponsored by Axis Bank Limited ( Axis Bank ). The Sponsor is the Settlor of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs.,,/ (Rs. One Lakh only) to Axis Mutual Fund Trustee Limited as the initial contribution towards the corpus of the Fund. Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of financial services to customer segments covering Large and MidCorporates, MSME, Agriculture and Retail Businesses. Axis Bank is one of the first new generation private sector banks to have begun operations in 994. The Bank was promoted in 99, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2. Axis Bank has a large footprint of 2, 94domestic branches (including extension counters) and 2, 74 ATMs spread across the country as at March, 26. The overseas operations of the Bank are spread over nine international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai; representative offices at Dhaka, Dubai, Abu Dhabi and an overseas subsidiary at London, UK. The international offices focus on corporate lending, trade finance, syndication, investment banking and liability businesses. d. Axis Asset Management Company Limited : Axis Asset Management Company Limited ( Axis AMC ) is a public limited company incorporated under the Companies Act, 956 on January, 29, having its registered office at Axis House, st Floor, C2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai 425. Axis AMC has been appointed as the Investment Manager of the Mutual Fund by the Trustee Company vide Investment Management Agreement dated June 27, 29 and executed between the Trustee Company and the AMC. Axis Bank Limited holds 75% (less one share) of the total issued and paid up equity share capital of Axis Asset Management Company Limited and the balance 25% plus one equity share has been acquired by Schroders Investment Management (Singapore) Limited (SIMSL) through its wholly owned subsidiary, Schroders Singapore Holdings Private Limited (SSHPL), a subsidiary of Schroders plc. Schroders plc, the ultimate holding company of Schroders Group, is among the largest companies listed on the London Stock Exchange and has a history of over 2 years. Schroders Group is a leading international asset management group managing various asset classes. Axis AMC has obtained Certificate of Registration as Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 99 vide registration no. INP54 with effect from January 4, 2, which was subsequently renewed and is valid till January, 29. There is no conflict of interest between the Mutual Fund and the PMS activity. Axis AMC has signed an agreement with an offshore fund manager to provide Nonbinding Advisory and related services in respect of offshore fund(s) investing in India. SEBI has vide its letter dated January, 2, accorded it s no objection to the AMC for undertaking nonbinding investment advisory and other related services. Axis Fixed Term Plan Series 4, 42, 4, 47, 48, 49, 52, 5, 55, 57, 59, 6, 6, 62, 64, 67, 69, 74 : The various series were invested in line with their investment objectives. The schemes are passively managed and performance comparison with benchmark is not appropriate in these cases. Axis Hybrid Fund Series 5, 6, 7, 8, 9,, 2,, 4, 5, 8, 9, 22, 2, 24, 25, 26, 27, 28, 29, : The various series were invested in line with their investment objectives. The schemes are passively managed and performance comparison with benchmark is not appropriate in these cases. B. Operations of the Schemes Axis Mutual Fund ( Axis MF ) continued on a strong growth trajectory and achieved a new peak AUM this year. Axis MF witnessed strong inflows in its schemes, on the back of strong performance of its schemes despite subdued capital markets. The number of active investor accounts too ballooned and we currently have over than million active investor accounts. Following major initiatives were enhanced:. EasySell: An online platform that empowers the advisors to initiate transactions for their clients in schemes of Axis MF. Clients in turn login using the EasyApp or website (www.axismf.com) to authorise the transaction. 2. EasyApp: It enables new investors in schemes of Axis MF to monitor their investments and perform investment transactions on the go. Apart from these, users can plan for their life's goals (using Mutual Funds), watch informative videos and connect with Axis MF in case they have a query.. Axis MF Lounge: A knowledgesharing application created for internal & external stakeholders with the intention of making information available onthego. The application is preloaded with info pertaining to products & services of Axis MF, Market Updates, Interesting Videos, Tools, amongst other resources. 4. Revamp of www.axismf.com: More than just a design change the new website provides an integrated platform for aggregated content across various social media like youtube, facebook. C. Future Outlook Summary and Background : The economy has bottomed over the last couple of years and growth seems to be reviving and should continue to steadily improve. However the revival has not been uniformly witnessed across different subcomponents leading to what may be called a 2speed economy. This trend is likely to remain so in the current financial year even as the overall growth rate improves. We expect the growth in 2627 to be led by public sector capex and urban consumption. Private sector capex cycle will likely turn only 2 years down the line. Weak inflation and output gap allowed RBI to carry out policy rate cuts. The government has undertaken a series of policy steps that can improve the growth environment in the medium term. Indian economy has become structurally much more sound in the last couple of years as the twin deficits have come down sharply. We believe that India can regain and indeed have a healthy growth rate over the next 4 years. Over the medium term earnings should start reflecting the improvement in the growth environment and has the potential to run ahead of nominal economic growth as the cycle strengthens. Equity outlook : Within India there has been a resetting of reform and policy expectations of market participants and stake holders from the government even as the government has faced political challenges in passing reform legislation. Finally and most significantly, the ongoing economic recovery has been weaker than expected so far and consequently demand has not picked up sufficiently. This has led to disappointments in topline growth across sectors leading to earning downgrades. Corporate profits have trailed nominal GDP growth over the last few years. The pressure on profitability has come from a number of factors weak demand, large capex projects in progress (many of which have got stuck or delayed), high interest rates and high input cost inflation. As these issues start getting resolved over time, we should be entering a period where earnings growth can outpace nominal GDP growth over the next few years. Looking ahead into 2627, we think that the equity market sentiment seems to have become excessively cautious. We expect continued steady improvement in the growth environment which should start flowing through into better corporate earnings. Helping earning growth in 2627 are lower inflation and commodity prices, good monsoon leading to improved rural economy, transmission of 25 bps of rate cuts done this year, improvement in urban discretionary demand, followon effects of government spending on capex as also oneoff factors such as award of the pay commission. Hence we advise, long term investors should stay invested in the market. Debt Market Outlook : India s external accounts are likely to remain comfortable even as the balance of payments surplus has narrowed in the absence of large portfolio inflows. India has seen significant addition to its foreign reserves over the last 2 years which provides it with high level of external resilience. The Rupee after a period of disproportionate strength in 24, has been broadly tracking other Asian currencies in the last few months. India s relative macro outperformance continues in a difficult global environment. Q4 GDP growth came at 7.9% which was better than the Q number of 7.2%. Growth was led by consumption while investment remained a drag. The gradual cyclical recovery should push GDP growth further over the next year. However given the output gap that exists, we do not expect the growth revival to have any immediate pressure on inflation. 2
Abridged Annual Report 2526 TRUSTEE REPORT (Contd.). INVESTMENT OBJECTIVES OF THE SCHEMES Sr. No. Name of the Scheme. Axis Long Term equity Fund, An Open ended equity linked savings scheme with a lockin period of years 2, An Open ended growth scheme Axis Midcap Fund, An Open ended Equity Scheme 4 Axis Focused 25 Fund, An Open ended equity scheme 5 Axis Enhanced Arbitrage Fund, An Open ended equity scheme 6 Axis Equity Saver Fund, An Open ended Equity Scheme 7 Axis Small Cap Fund 5 Year Close ended Equity Scheme with automatic conversion into an open ended equity scheme on completion of 5 years Axis Triple Advantage Fund, An Open ended Hybrid Fund 8 Investment Objective To generate income and longterm capital appreciation from a diversified portfolio of predominantly equity and equityrelated Securities. However, there can be no assurance that the investment objective of the scheme will be achieved. To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities including derivatives. However, there can be no assurance that the investment objective of the scheme will be achieved. To achieve long term capital appreciation by investing predominantly in equity & equity related instruments of mid size companies. The focus of the fund would be to invest in relatively larger companies within this category. To generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies. To generate income through low volatility absolute return strategies that take advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments. To provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments. To generate longterm capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies. To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments, fixed income instruments & gold Exchange Traded Funds. 9 Axis Children s Gift Fund, An Open ended Balanced Scheme To generate income by investing in debt & money market instruments along with longterm capital appreciation through investments in equity & equity related instruments. Axis Gold ETF, An Open ended Gold Exchange Traded Fund To generate returns that are in line with the performance of gold. Axis Gold Fund, An Open ended fund of fund scheme To generate returns that closely correspond to returns generated by Axis Gold ETF. 2 Axis Liquid Fund, An Open ended Liquid Scheme To provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved. Axis Constant Maturity Year Fund, An Open ended gilt scheme To generate returns similar to that of year government bonds. 4 Axis Treasury Advantage Fund, An Open ended Debt Scheme To provide optimal returns and liquidity to the Investors by investing primarily in a mix of money market and short term debt instruments which results in a portfolio having marginally higher maturity as compared to a liquid fund at the same time maintaining a balance between safety and liquidity. However, there can be no assurance that the investment objective of the scheme will be achieved. 5 Axis Short Term Fund, An Open ended Debt Scheme To generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved. 6 Axis Dynamic Bond Fund, An Open ended debt scheme To generate optimal returns while maintaining liquidity through active management of a portfolio of debt and money market instruments. 7 Axis Income Fund, An Open ended debt scheme To generate optimal returns in the medium term while maintaining liquidity of the portfolio by investing in debt and money market instruments. 8 Axis Banking Debt Fund, An Open ended debt scheme To generate stable returns by investing predominantly in debt & money market instruments issued by banks. 9 Axis Fixed Income Opportunities Fund, To generate stable returns by investing in debt & money market instruments across the yield curve & credit An Open ended debt scheme spectrum. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns. 2 Axis Income Saver, An Open ended Income Fund To generate regular income through investments in debt & money market instruments, along with capital appreciation through limited exposure to equity and equity related instruments. It also aims to manage risk through active asset allocation. 2 Axis Capital Protection Oriented Fund Series 5, A year To protect the capital by investing in a portfolio of debt & money market instruments that are maturing on or close ended capital protection oriented fund before the maturity of the Scheme. The scheme also aims to provide capital appreciation through exposure in equity & equity related instruments. 22 Axis Fixed Term Plan Series 4, 42, 4, 47, 48, 49, 52, 5, 55, To generate returns through a portfolio of debt & money market instruments that are maturing on or before the 57, 59, 6, 6, 62, 64, 67, 69, 74, Close ended debt scheme(s) maturity of the respective plan(s). 2 Axis Hybrid Fund Series 5, 6, 7, 8, 9,, 2,, 4, 5, To generate income by investing in high quality fixed income securities whilst the secondary objective is to 8, 9, 22, 2, 24, 25, 26, 27, 28, 29,, Close ended generate capital appreciation by investing in equity and equity related instruments. debt scheme(s) 4. Significant Accounting Policies Accounting policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations 996. Summary of significant account policies is disclosed in Financial Statements of the schemes. 5. Unclaimed Dividends and Redemptions Summary of no. of investors and corresponding amount as at March, 26: Name of Scheme Unclaimed Dividends Unclaimed Redemptions Amount (Rs.) No. of Investors Amount (Rs.) No. of Investors Axis Capital Protection Oriented Fund Series 99,49.74 Axis Capital Protection Oriented Fund Series 2,482,664.95 4
Abridged Annual Report 2526 TRUSTEE REPORT (Contd.) Axis Capital Protection Oriented Fund Series Axis Capital Protection Oriented Fund Series 4 Axis Constant Maturity Year Fund,4.6 Axis Dynamic Bond Fund 5,99.69 5 Axis Enhanced Arbitrage Fund 8,74.74 6,74,6.5 766 Axis Fixed Income Opportunities Fund 6.9 Axis Fixed Term Plan Series 6 (9 Days) 89.8 Axis Fixed Term Plan Series 6 (7 Days) 2,642.7 Axis Fixed Term Plan Series 7 (2 Months) Axis Focused 25 Fund 6,62. 7 Axis Gold Fund Axis Hybrid Fund Series 2 Axis Hybrid Fund Series Axis Hybrid Fund Series Axis Income Fund 24,982.7 2 Axis Income Saver 489,6.97 5 Axis Liquid Fund,778.9 Axis Long Term Equity Fund 2,5,22.27 62 Axis Midcap Fund 49,77.4 5 Axis Short Term Fund 9,78.5 9 Axis Treasury Advantage Fund,8.9 Axis Triple Advantage Fund 2,57.64 6 TOTAL 5,96,627.62 2,4 Note: The Amounts of Unclaimed Dividends and Redemptions which are pending for more than 6 months are considered as unclaimed. 2,798,568.9,764,79.64. 55 6,96,295.4 54,789. 2,847.52 272,92.26 4,887,48.6,978,896.7 8,5.6 79,874.85 897.27 55,65.96 28,7 2,97.45 2,99.27 8,265.2 2,76,487.79 286 64 59 6 5 26 6 22 6 7 752 prospective unit holder can obtain copy of the Trust Deed, the full Annual Report of the Fund / AMC at a price. 6. Redressal Of Complaints Received Against Axis Mutual Funds During 256 Please refer Annexure 2 for the details on Redressal of Complaints received against Axis Mutual Fund during the financial year ended March, 26. 7. Statutory Information a. The Sponsor is not responsible or liable for any loss resulting from the operation of the schemes of the Fund beyond their initial contribution (to the extent contributed) of Rs.,,/ for setting up the Fund, and such other accretions / additions to the same. b. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments. c. Full Annual Report shall be disclosed on the website (www.axismf.com) and shall be available for inspection at the Head Office of the mutual fund. Present and ACKNOWLEDGEMENTS The Trustee Company thanks the unitholders of the Schemes for their overwhelming response and also thanks the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the Association of Mutual Funds in India (AMFI) for the guidance provided by them. The Trustee also appreciates the service provided by the Registrar and Transfer Agent, Fund Accountant, Custodian, Bankers, Distributors and Brokers. The guidance and services provided by the auditors and legal advisors and the sincerity and dedication of the employees of Axis AMC is also appreciated. For Axis Mutual Fund Trustee Limited sd/bapi Munshi Director Place: Mumbai Date : July, 26 4 Dr. T. C. Nair Director
Abridged Annual Report 2526 TRUSTEE REPORT (Contd.) Annexure year return (%)^ years return (%)^ 5 years return (%)^ Returns since inception (%)^ Name of the Scheme/ Benchmark Allotment AUM (` in Date crores) Axis Liquid Fund Gr CRISIL Liquid Fund Index Oct. 9, 9 6,9. 675.942 8.2 8.6 8.8 8.82 9.4 8.6 8. 7.85 Axis Liquid Fund ReP Gr CRISIL Liquid Fund Index Mar., 68.792 7.65 8.6 8.28 8.82 8.54 8.6 8.2 8.8 Axis Liquid Fund DP Gr CRISIL Liquid Fund Index Jan., 679.428 8.28 8.6 8.9 8.82 8.9 8.78 Axis Treasury Advantage Fund Gr CRISIL Liquid Fund Index Oct. 9, 9,48 68.994 8.56 8.6 8.9 8.82 9. 8.6 8.8 7.85 Axis Treasury Advantage Fund DP Gr CRISIL Liquid Fund Index Jan., 75.64 8.92 8.6 9.4 8.82 9. 8.78 Axis Treasury Advantage Fund ReP Gr CRISIL Liquid Fund Index Mar., 59.69 7.88 8.6 8. 8.82 8.5 8.6 7.96 8.7 Axis Long Term Equity Fund DP Gr S&P BSE 2 Jan.,.4 5.2 7.86 28.69 2.47 24.45 9.24 29.856 6.4 7.86 27.6 2.47 8.6 6.49 8.67 6.68 Axis Long Term Equity Fund Gr S&P BSE 2 7,87.49 Dec. 29, 9 V Scheme Benchmark Scheme Benchmark Scheme Benchmark Scheme Benchmark (in Rs.) return returns return returns return returns return returns DP Gr Nifty 5 Jan.,,975.6 8.8897 5.5 8.86 5.82.8 4.47 8.4 Gr Nifty 5 Jan. 5, 8.279 6.46 8.86 4.54.8.57 5.8. 6. Axis Short Term Fund DP Gr Jan., 2,466. 6.782 9.4 9.45 9.8 9.4 9.2 Axis Short Term Fund Gr Jan. 22, 6.275 8. 8.52 9.8 8.94 8.98 8.2 Axis Short Term Fund ReP Gr Mar. 2, 6.42 8. 8.54 9.8 8.8 8.98 8.9 8. Axis Income Saver DP Gr Jan. 4, 6.575 5.4 2.9 9.4.5 8.86 Axis Income Saver Gr July 6, 5.864.7.62 9.4 8.87 8.5 8.4 8.7 5.887 8.7 9.87 8.96. 8.88 5.25 6.84 8.44 8.96 8.9 8.8 8.9.26 8.28 6.86 6.74 5.6 69.96 Axis Dynamic Bond Fund DP Gr CRISIL Composite Bond Fund Index Jan., Axis Dynamic Bond Fund Gr CRISIL Composite Bond Fund Index Apr. 27, Axis Triple Advantage Fund DP Gr 5 Nifty 5 + 5 CRISIL Composite Bond Fund Index + INR Price of Gold Jan., Axis Triple Advantage Fund Gr 5 Nifty 5 + 5 CRISIL Composite Bond Fund Index + INR Price of Gold Aug. 2, 5.997.4.26 7.22 6.86 7.99 7.2 7.75 7.76 Axis Gold ETF Domestic Price of Gold Nov., 2.88 278.777 9.92..75 2.7 5.72 5.7 5.74 5.2 Axis Midcap Fund DP Gr S&P BSE Midcap Jan.,,7.9 2.9994 6.87. 25.9 9.49 8.88.74 Axis Midcap Fund Gr S&P BSE Midcap Feb. 8, 2.69 7.98. 2.5 9.49 7.62. 7.74.82 Axis Gold Fund DP Gr Domestic Price of Gold Jan., 9.8667 5.68..75 2.7 4.5.27 Axis Gold Fund Gr Domestic Price of Gold Oct. 2, 9.424.99. 5.5 2.7.9.2 Axis Capital Protection Oriented Fund Series 5 Gr Nov. 2, 2 6.75.76 5.75 7.46 9.4 8.9 9.9 Axis Constant Maturity Year Fund DP Gr Crisil year Gilt Index Jan., 69.8.54 6.9 7.97 7.5 6.98 7.47 7.7.2794 6.6 7.97 6.98 6.98 7. 7.4 Axis Constant Maturity Year Fund Gr Crisil year Gilt Index Jan. 2, 2 2.4 75.47 76.8 5
Abridged Annual Report 2526 TRUSTEE REPORT (Contd.) Axis Income Fund DP Gr Crisil Composite Bond Fund Index Jan., Axis Income Fund Gr Crisil Composite Bond Fund Index 4.682 7.99 9.87 8.96 9.79 8.78 Mar. 28, 2 4.226 6.76 8.76 8.96 9.9 9.4 Axis Banking Debt Fund DP Gr CRISIL Short term Bond Fund Index Jan., 85.49 94.48 8.6 9.7 9.8 9.4 9.2 Axis Banking Debt Fund Gr CRISIL Short term Bond Fund Index June 8, 2 86.2482 8.4 8.97 9.8 8.94 9.4 Axis Focused 25 Fund DP Gr Primary Nifty 5 Additional benchmark : S&P BSE 2 Jan., 7.5889 4.5 8.86 5.87.8.5 8.4 Axis Focused 25 Fund Gr Primary Nifty 5 Additional benchmark : S&P BSE 2 June 29, 2 6.96 5.85 8.86 4.9.8 5..72 Axis Hybrid Fund Series 5 Gr July 25, 2.598 6. 7.22.5 Axis Hybrid Fund Series 5 DP Gr July 25, 2.72 5.2 8.25.5 Axis Hybrid Fund Series 6 Gr Aug. 6, 2.26 7.79 8.8 2.6 Axis Hybrid Fund Series 6 DP Gr Aug. 6, 2.575 6.89 9.2 2.6 2.748 7.74 7.96.26 2.485 6.84 9.2.26 9.4.94..7 2. 9.5455.5..22 2..2527 6.88 5.55..4824 6. 6.54..2667 6.75 5.76.92.4879 6. 6.7.92 2.94 7.85 8.4 9.4 2.262 8.27 8.8 9.4 2.75 7.9 8.52 9.52 2.956 8.6 8.99 9.52.966 7.84 9.47 2.926 8. 8.99 9.47 2.65 7.89 9.29 9.46 2.2899 8.8 9.8 9.46.8872 7.79 8.5 9.56.9987 8.4 8.82 9.56.884 7.86 8.45 9.59.9859 8. 8.88 9.59 Axis Hybrid Fund Series 7 Gr Sep. 5, Axis Hybrid Fund Series 7 DP Gr Sep. 5, Axis Small Cap Fund Gr Nifty Smallcap Nov. 29, Axis Small Cap Fund Direct Gr Nifty Smallcap Nov. 29, Axis Hybrid Fund Series 8 (279D) Gr Jan. 24, 4 Axis Hybrid Fund Series 8 (279D) DP Gr Jan. 24, 4 Axis Hybrid Fund Series 9 (282D) Gr Feb., 4 Axis Hybrid Fund Series 9 (282D) DP Gr Feb., 4 Axis Fixed Term Plan Series 42 RP Gr Oct., Axis Fixed Term Plan Series 42 DP Gr Oct., Axis Fixed Term Plan Series 4 RP Gr Dec., Axis Fixed Term Plan Series 4 DP Gr Dec., Axis Fixed Term Plan Series 47 RP Gr Jan. 5, 4 Axis Fixed Term Plan Series 47 DP Gr Jan. 5, 4 Axis Fixed Term Plan Series 48 (Yrs) RP Gr Jan. 7, 4 Axis Fixed Term Plan Series 48 (Yrs) DP Gr Jan. 7, 4 Axis Fixed Term Plan Series 49 RP Gr Feb., 4 Axis Fixed Term Plan Series 49 DP Gr Feb., 4 Axis Fixed Term Plan Series 52 RP Gr Feb., 4 Axis Fixed Term Plan Series 52 DP Gr Feb., 4 224.5 59.79 42.55 299.82 289.26 4.6 6.57 6.8 5. 2.7 8.78 2. 46. 28. 6
Abridged Annual Report 2526 TRUSTEE REPORT (Contd.) Axis Fixed Term Plan Series 5 (5D) RP Gr CRISIL Composite Bond Fund Index Feb. 2, 4 Axis Fixed Term Plan Series 5 (5D) DP Gr CRISIL Composite Bond Fund Index Feb. 2, 4 Axis Fixed Term Plan Series 6 (22D) RP Gr CRISIL Composite Bond Fund Index Mar. 2, 4 Axis Fixed Term Plan Series 6 (22D) DP Gr CRISIL Composite Bond Fund Index Mar. 2, 4 Axis Fixed Term Plan Series 64 (75D) RP Gr Apr. 2, 4 Axis Fixed Term Plan Series 64 (75D) DP Gr Apr. 2, 4 Axis Fixed Term Plan Series 67 (28D) Gr CRISIL Composite Bond Fund Index June 5, 4 Axis Fixed Term Plan Series 67 (28D) DP Gr CRISIL Composite Bond Fund Index June 5, 4 Axis Fixed Term Plan Series 69 (Yrs) RP Gr Aug., 4 Axis Fixed Term Plan Series 69 (Yrs) DP Gr Aug., 4 Axis Fixed Term Plan Series 74 (5 days) RP Gr CRISIL Composite Bond Fund Index Mar. 25, 5 Axis Fixed Term Plan Series 74 (5 days) DP Gr CRISIL Composite Bond Fund Index Mar. 25, 5 Axis Fixed Income Opportunities Fund Gr July 5, 4 Axis Fixed Income Opportunities Fund DP Gr July 5, 4 Axis Enhanced Arbitrage Fund Gr Crisil Liquid Fund Index Aug. 4, 4 Axis Enhanced Arbitrage Fund Direct Gr Crisil Liquid Fund Index Aug. 4, 4 Axis Hybrid Fund Series (42M) Gr May 9, 4 Axis Hybrid Fund Series (42M) DP Gr May 9, 4 Axis Hybrid Fund Series 2 (282D) Gr May 27, 4 Axis Hybrid Fund Series 2 (282D) DP Gr May 27, 4 Axis Hybrid Fund Series (275D) Gr June 8, 4 Axis Hybrid Fund Series (275D) DP Gr June 8, 4 Axis Hybrid Fund Series 4 (274D) Gr Sep. 2, 4 Axis Hybrid Fund Series 4 (274D) DP Gr Sep. 2, 4 Axis Hybrid Fund Series 5 (275D) Gr Sep. 7, 4 Axis Hybrid Fund Series 5 (275D) DP Gr Sep. 7, 4 Axis Hybrid Fund Series 8 (42M) Gr Jan. 9, 5 Axis Hybrid Fund Series 8 (42M) DP Gr Jan. 9, 5 Axis Hybrid Fund Series 9 (42M) Gr Feb. 4, 5 Axis Hybrid Fund Series 9 (42M) DP Gr Feb. 4, 5 Axis Hybrid Fund Series 22 (278D) Gr May, 5 2.64 25.4 5.6 58.44 26.9 2.46 44.5 27.7 22.64 275.79 499.87 486.75 7.68 49.9 7.92 84.72 2.6 7.9 9.6.52 2.275 8.45 9.94.52 2. 7.97 9.4.48 2.4 8.52..48.747 7.77 8.64 9.4.865 8. 9.22 9.4.7284 7.82 9.4.2.895 8.62 9.99.2.677 8.7 9.6 9.28.7 9.4.6 9.28.842 8.2.856 8.8 8.9.767 8.67 9.9 9..945 9.79.94 9..24 6.4 8.6 7.2 8.8.589 7.5 8.6 8. 8.8.7558 5.6.92.57.966 4.88 4.98.57.6992 5.2.7 9.76.94 4.56 4.8 9.76.645 5.24.54 9.2.847 4.48 4.59 9.2.464 2.47 2.8 8.98.5847.69.67 8.98.286 2.59.82 9.7.4466.8 2.88 9.7 9.99.9.55 5.7.2.2.27 5.7 9.847.. 5.45 9.946..49 5.45 9.72 2.77 5.9 7
Abridged Annual Report 2526 TRUSTEE REPORT (Contd.) Axis Hybrid Fund Series 22 (278D) DP Gr May, 5 Axis Hybrid Fund Series 2 (275D) Gr May 28, 5 Axis Hybrid Fund Series 2 (275D) DP Gr May 28, 5 Axis Hybrid Fund Series 24 (276D) Gr June 7, 5 Axis Hybrid Fund Series 24 (276D) DP Gr June 7, 5 Axis Hybrid Fund Series 25 (278D) Gr Aug. 25, 5 Axis Hybrid Fund Series 25 (278D) DP Gr Aug. 25, 5 Axis Hybrid Fund Series 26 (276D) Gr & Nifty 5 Index (5) Sep., 5 Axis Hybrid Fund Series 26 (276D) DP Gr & Nifty 5 Index (5) Sep., 5 Axis Hybrid Fund Series 27 (5D) Gr & Nifty 5 Index (5) Oct. 29, 5 Axis Hybrid Fund Series 27 (5D) DP Gr & Nifty 5 Index (5) Oct. 29, 5 Axis Hybrid Fund Series 28 (D) Gr & Nifty 5 Index (5) Nov. 8, 5 Axis Hybrid Fund Series 28 (D) DP Gr & Nifty 5 Index (5) Nov. 8, 5 5. 42.77 6.76 89.4 272.97 2.4 9.2 9.886.8 5.9 9.7688 2. 5.28 9.8599.4 5.28 9.827.7 6.9 9.92.87 6.9 9.942.59 4.6.72.7 4.6.52.5 4.4.768.77 4.4 9.886.4.97 9.925.68.97.48.4 2.57.86.82 2.57.4977 4.98 2.7.567 5.7 2.7.775 7.75..795 7.9..52 4.68 5.5 Axis Hybrid Fund Series 29 (275D) Gr & Nifty 5 Index (5) Feb., 6 Axis Hybrid Fund Series 29 (275D) DP Gr & Nifty 5 Index (5) Feb., 6 Axis Hybrid Fund Series (279D) Gr & Nifty 5 Index (5) Feb., 6 Axis Hybrid Fund Series (279D) DP Gr & Nifty 5 Index (5) Feb., 6 Axis Childrens Gift Fund Compulsory Lockin DP Gr 5% Nifty 5 + 5% Crisil Composite Bond Fund Index Dec. 8, 5 Axis Childrens Gift Fund Compulsory Lockin RP Gr 5% Nifty 5 + 5% Crisil Composite Bond Fund Index Dec. 8, 5.69.94 5.5 Axis Childrens Gift Fund No Lockin DP Gr 5% Nifty 5 + 5% Crisil Composite Bond Fund Index Dec. 8, 5.699 4.95 5.5 Axis Childrens Gift Fund No Lockin RP Gr Nifty 5 + 5% Crisil Composite Bond Fund Index Dec. 8, 5.65.94 5.5 Axis Equity Saver Fund Gr Feb., 6 9.8669..9 Axis Equity Saver Fund DP Gr Feb., 6 9.9488.5.9 6.5 29. 986.29 Gr Growth Option, DP Direct Plan, RP Regular Plan, ReP Retail Plan, Not applicable ^ Past performance may or may not be sustained in the future. Returns greater than one year are compounded annualized (CAGR). 8
Abridged Annual Report 2526 Annexure 2 Redressal of Complaints received against Axis Mutual Fund during 256 Total Number of Folios : 66598 Action on (a) and (b) (a) No. of complaints (b) No. of Pending Resolved pending at the Complaints Type of Complaint# Non beginning of received during Within 6 68 Beyond Actionable* 69 92 6 the year days 8 days the year days days months months months months IA Non receipt of Dividend on Units 7 6 2 IB Interest on delayed payment of Dividend 225 2 22 IC Non receipt of Redemption Proceeds 4 9 2 ID Interest on delayed payment of Redemption 7 4 II A Non receipt of Statement of Account/Unit Certificate 6 6 II B Discrepancy in Statement of Account II C Data corrections in Investor details 6 6 II D Non receipt of Annual Report/Abridged Summary III A Wrong switch between Schemes III B Unauthorized switch between Schemes III C Deviation from Scheme attributes III D Wrong or excess charges/load III E Non updation of changes viz. address, PAN, bank details, nomination,etc 8 2 89 5 7 IV Others** TOTAL 67 4 22 9 # including against its authorized persons/ distributors/ employees etc. *Non actionable means the complaint that are incomplete / outside the scope of the mutual fund. **If others include a type of complaint which is more than % of overall complaint, provide that reason separately. Complaint Code AUDITOR S REPORT To the Trustees of AXIS MUTUAL FUND. Report on the Financial Statements We have audited the accompanying financial statement of, which comprise the balance sheet as at March, 26, the revenue account and cash flow statement for the year ended, and a summary of significant accounting policies and other explanatory information. 2. Management s Responsibility for the Financial Statements Management of Axis Asset Management Company Limited ( Company ), the scheme s asset manager, is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Schemes in accordance with accounting principles generally accepted in India, including the accounting policies and standards specified in the Ninth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 996 and amendments thereto ( the SEBI Regulations ). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Scheme s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the SEBI Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the balance sheet, of the state of affairs of the Scheme as at March, 26; (b) in the case of the revenue account, of the deficit for the year ended on that date; and (c) in the case of the cash flow statement, of the cash flow for the year ended on that date. Report on Other Legal and Regulatory Requirements. As required by Regulation 55(4) and clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that: a. 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; b. In our opinion, the balance sheet and revenue account dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule to the Regulations; and c. The balance sheet, revenue account and cash flow statement dealt with by this report are in agreement with the books of account of the Scheme. 2. 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, 26 are in accordance with the Regulations and other guidelines issued by the Securities and Exchange Board of India, as applicable, and approved by the Boards of Directors of Axis Mutual Fund Trustee Limited, and are fair and reasonable. For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm Registration Number: E/E5 per Jayesh Gandhi Partner Membership Number: 7924 Place: Mumbai Date : July 26 9
Abridged Annual Report 2526 Address: Axis House, st Floor, C2 Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai 425, India. ABRIDGED BALANCE SHEET AS AT MARCH, 26 As at March, 26 As at March, 25,,688.52 9,47.98 LIABILITIES Unit Capital 2 Reserves & Surplus 2. Unit Premium Reserve 2,6. 9,.5 2.2 Unrealised Appreciation Reserve,4.27 29,4.6 8,7.,2.56 2. Other Reserves Loans & Borrowings 4 Current Liabilities & Provisions 4. Provision for doubtful Income/Deposits 4.2 Other Current Liabilities & Provisions TOTAL,4.,287.7,98,97.42,7,6.95,88,54.5,65,45.54 ASSETS Investments.. Listed Securities:.. Equity Shares / Warrants..2 Preference Shares.. Equity Linked Debentures..4 Other Debentures & Bonds..5 Securitised Debt securities..6 Futures and Options.2 Securities Awaited Listing:.2. Equity Shares.2.2 Preference Shares.2. Equity Linked Debentures.2.4 Other Debentures & Bonds.2.5 Securitised Debt securities. Unlisted Securities.. Equity Shares..2 Preference Shares.. Equity Linked Debentures..4 Other Debentures & Bonds..5 Securitised Debt securities.4 Government Securities.5 Treasury Bills.6 Commercial Paper.7 Certificate of Deposits.8 Bill Rediscounting 6,925.98.9 Units of Domestic Mutual Fund. Foreign Securities. Gold Total Investments 2 Deposits Other Current Assets,95,8.,65,45.54,69.99 9.95. Cash & Bank Balance,26.5 86.9.2 CBLO/ Reverse Repo Lending,69.82,478.66 6.77 247.9,98,97.42,7,6.95. Others 4 Deferred Revenue Expenditure (to the extent not written off) TOTAL Notes to Accounts Annexure I
Abridged Annual Report 2526 Address: Axis House, st Floor, C2 Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai 425, India. ABRIDGED REVENUE ACCOUNT FOR THE YEAR ENDED MARCH, 26 Current Year ended March, 26 Previous Year ended March, 25 INCOME. Dividend 2,27.9,28.7.2 Interest 476.82 26.96. Realised Gain / (Loss) on Foreign exchange transactions.4 Realised Gains / (Losses) on Interscheme sale of investments (.).5 Realised Gains / (Losses) on External sale / redemption of investments 6,.48 9,52.9.6 Realised Gains / (Losses) on Derivative Transactions 25.8 (6.8).7 Other Income * 9.62 6.65 8,8.62,254.68,97.9,44.48 (A) 2 EXPENSES 2. Management fees 2.2 Service tax on Management fees 474.4 77. 2. Transfer agents fees and expenses 74.9 2.94 2.4 Custodian fees 24.6 7.22 2.5 Trusteeship fees 2.29.6 2.6 Commission to Agents 9.8,82.25 2.7 Marketing & Distribution expenses.4 2.64 2.8 Audit fees 2.54 2.88 2.9 Other operating expenses 99..98 2. Less: Expenses reimbursed/to be reimbursed by AMC (25.2) (.4) 4,589. 2,977.25 4,242.49 8,277.4 5,94.6 (,66.87) 8,277.4 2,256.46 (B) NET REALISED GAINS / (LOSSES) FOR THE YEAR (A B = C) 4 Change in Unrealised Depreciation in value of investments (D) 5 NET GAINS /(LOSSES) FOR THE YEAR (E=(CD)) 6 Change in unrealised appreciation in the value of investments (F) 7 NET SURPLUS /(DEFICIT) FOR THE YEAR ( E + F = G ) (,66.87) 29,5.89 7. Add: Balance transfer from Unrealised Appreciation Reserve 29,4.6 8,78.7 7.2 Less: Balance transfer to Unrealised Appreciation Reserve (,4.27) (29,4.6) 7. Add / (Less): Equalisation 6,94.4,6.67 8 Total,46.5 8,4. 9 Dividend appropriation 9. Income Distributed during the year 2,78.6,85.25 9.2 Tax on income distributed during the year Retained Surplus / (Deficit) carried forward to Balance sheet 8,5 6,55.85 Notes to Accounts Annexure I * Other Income includes Load Income (net of service tax), wherever applicable.
Abridged Annual Report 2526 Address: Axis House, st Floor, C2 Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai 425, India. NOTES TO ACCOUNTS Annexure I to the Abridged Balance Sheet and Revenue Account for the year ended March, 26. Sr. No. Particulars Investments:. All the investments are held in the name of the Scheme, as per clause 7 of the Seventh Schedule under Regulation 44() of SEBI (Mutual Funds) Regulations, 996..2 Open Position of derivatives (outstanding market value & % to Net Assets) is an under: As on March, 26 As on March, 25 Scheme Nature of Outstanding As a (%) Nature of Outstanding As a (%) Derivative Market Value to Net Assets Derivative Market Value to Net Assets Equity Futures * 4,4.9 2.% * Gross exposure indicated Disclosure for derivative transactions as required by SEBI circular Cir/IMD/DF//2 dated August 8, 2: Annexure IA. Investments in Associates and Group Companies: 2526 2425 Scheme Associate/Group Nature of Cost of Outstanding Cost of Outstanding Company Instruments Investments Market Value Investments Market Value Axis Bank Limited Fixed Deposit,.,. Cipla Limited Equity shares 6.8 CMC Limited Equity shares 55.7 2,8.4.4 Open position of Securities Borrowed and / or Lent by the schemes NIL (Previous year NIL).5 Details of Non Performing Assets and depreciation provisions thereof NIL (Previous year NIL).6 Aggregate Unrealised Gain / (Loss) as at the end of the Financial Period and percentage to net assets is as under : As at March, 26 As at March, 25 Scheme Unrealised Gain / (Loss) (%) to Unrealised Gain / (Loss) (%) to Net Assets Net Assets,4.27 6.8% 29,4.6 7.8%.7 Aggregate Value of Purchase and Sale with Percentage to average assets is as under : 2526 2425 Scheme Purchases (%) of Sales (%) of Purchases (%) of Sales (%) of average daily average daily average daily average daily net assets net assets net assets net assets,7,724.2 9.7%,,427.62 7.5%,6,656. 2.98% 98,245.7 8.2% Purchases and sales include futures. Notional value is considered in case of futures..8 NonTraded securities in the portfolio is as under : As on Mar,26 As on Mar,25 Scheme Instrument Market Value (%) Market Value (%) to Net Assets to Net Assets Money Market Instruments 6,925.98.5% 2 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 996, As Amended : Annexure IB Details of Large Holdings (over 25% of V of the scheme) : NIL (Previous year NIL) 4 Investor Awareness Program In accordance with SEBI (Mutual Funds) Regulations, 996 and guidelines issued thereunder,.2% p.a. of daily net assets, being part of total recurring expenses is set aside in each scheme for Investor Education and Awareness Initiatives (IEAI). Further, in accordance with AMFI best practice guidelines circular no 5/BP/56/256 dated April 2, 25, the cumulative balance of the IEAI is transferred on monthly basis to a separate bank account maintained for the purpose and the unspent amounts are deployed in CBLO (Collaterised Lending & Borrowing Obligation) effective May 5, 25. The details are as follows: ` in Lakhs Particulars F.Y. 256 F.Y. 245 Opening balance 498.2 27.22 Additions during the year * 699.59 469.94 Less : utilisation during the year,78.22 242.4 Closing balance 9.48 498.2 * Amount includes interest on CBLO investments. 5 Loans (Borrowings): NIL (Previous year NIL) 6 Credit Default Swaps There were no transactions in credit default swaps during the year ended March, 26. (previous year NIL). 7 Unit Capital movement during the year ended : Annexure IC 8. Prior year figures have been reclassified and regrouped, wherever applicable, to conform to current year's presentation. 9. Contingent Liability: NIL (Previous year NIL). Expenses other than Management fees viz.transfer agents fees, Custodian fees, Trusteeship fees, Commission to Agents, Audit fees and other expenses are inclusive of service tax (wherever applicable). 2