Reliance Capital Asset Management Limited A Reliance Capital Company Express Bldg., 4th Floor, 14 E Road, Churchgate, Mumbai - 400 020. Equity Schemes Reliance NRI Equity Fund (An Open-ended Diversified Equity Scheme) Reliance Index Fund (An Open-ended Index Linked Scheme) Reliance Regular Savings Fund (Equity option & Balanced option) (An Open ended Scheme) Reliance Equity Linked Saving Fund Series I (A 10 year close-ended Equity Linked Savings Scheme) Annual Report 2007-2008 Reliance Gold Exchange Traded Fund (An Open-ended Gold ETF) Reliance Banking Fund (An Open-ended Banking Sector Scheme) Reliance Pharma Fund (An Open-ended Pharma Sector Scheme) Reliance Media & Entertainment Fund (An Open-ended Media & Entertainment Sector Scheme) Reliance Mutual Fund (A Trust under the Indian Trust Act, 1882) SPONSOR Reliance Capital Limited (Incorporated under the Companies Act, 1956) Regd. Office : H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai - 400 710. Tel.: +9122 3032 7000, Fax: +9122 3032 7202 TRUSTEE Reliance Capital Trustee Co. Limited (Incorporated under the Companies Act, 1956) Corporate Office : Regd. Office : Express Bldg., 4th Floor, 14 E Road, Reliance House, Nr. Mardia Plaza, Churchgate, Mumbai - 400 020. Off. C. G. Road, Ahmedabad, Tel.: 022-30414800 Ahmedabad, Fax: 022-30414899 Gujarat 380006 Website : www.reliancemutual.com DIRECTORS OF RELIANCE CAPITAL TRUSTEE CO. LIMITED* Mr. A. N. Shanbhag Mr. Anand Bhatt Mr. S. S. Bhandari Mr. P. P. Vora Mr. S. Santhanakrishnan INVESTMENT MANAGER Reliance Capital Asset Management Limited (Incorporated under the Companies Act, 1956) Corporate Office : Regd. Office : Express Bldg., 4th Floor, 14 E Road, Reliance House, Nr. Mardia Plaza, Churchgate, Mumbai - 400 020. Off. C. G. Road, Ahmedabad, Tel.: 022-30414800 Gujarat 380 006. Fax: 022-30414899 Website : www.reliancemutual.com DIRECTORS OF RELIANCE CAPITAL ASSET MANAGEMANT LIMITED** Mr. Soumen Ghosh Mr. Kanu Doshi Mr. Manu Chadha Mr. S. C. Tripathi AUDITORS Haribhakti & Co. Chartered Accountants 42, Free Press House, Nariman Point, Mumbai - 400 021. CUSTODIAN Deutsche Bank A.G. Kodak House, Ground Floor, 222, D. N. Road, Mumbai - 400 001 REGISTRAR Karvy Computershare Private Limited (Formerly known as Karvy Consultants Limited) Karvy Plaza, 21, Road No. 4, Street No. 1, Banjara Hills, Hyderabad-500 034. Tel.: 040-2331 2454, Fax: 040-2331 1968. INTERNAL AUDITORS Price Waterhouse 252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai 400 028 Mr. S. Santhanakrishnan was apponited w.e.f. February 25, 2008 * Mr. S.P. Talwar resigned w.e.f March 25, 2008 Mr. S. Ghosh was appointed w.e.f. April 22, 2008 ** Mr. Amitabh Chaturvedi resigned w.e.f April 24, 2008 Risk Factors : Mutual Funds and securities investments are subject to market risks and there is no assurance and no guarantee that the Scheme objectives will be achieved. As with investments in any securities, the NAVs of the units issued under the Scheme can go up or down depending on the factors and forces affecting the securities market. Various schemes launched by RMF as specified above are only the name of the Schemes and do not in any manner indicate either the quality of the Scheme, their future prospects or returns. Past performance of the Sponsor or its group affiliation is not indicative of future performance of the Scheme. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lac towards the setting up of the Mutual Fund. The Mutual Fund is not guaranteeing or assuring any dividends/ bonus. The Mutual Fund is also not assuring that it will make periodical dividend/ bonus distributions, though it has every intention of doing so. All dividend/ bonus distributions are subject to the availability of distributable surplus in the Scheme. The liquidity of the Schemes investments may be inherently restricted by trading volumes, settlement periods and transfer procedures. Scheme specific risk factors have been mentioned in the Offer Document. Please read the offer document of respective schemes carefully before investing.
Trustees Report 1. Scheme Performance, Future Outlook and Operations of the Schemes Compounded Annualised Returns (%) Name of the Scheme / 1 3 5 Since Date of Benchmark Index year years years Inception inception Reliance NRI Equity Fund 17.16 34.12 NA 34.68 16.11.2004 BSE 200 Index 23.99 30.56 NA 30.65 Reliance Index Fund Nifty Plan 21.51 23.72 NA 22.16 08.02.2005 S&P CNX Nifty 23.74 32.46 NA 30.42 Reliance Index Fund Sensex 17.09 32.00 NA 29.71 08.02.2005 Plan BSE Sensex 19.56 34.03 NA 31.96 Reliance Regular Savings Fund 51.32 NA NA 32.01 09.06.2005 - Equity Option BSE 100 24.83 NA NA 33.28 *Reliance Regular Savings 13.88 NA NA 10.83 09.06.2005 Fund- Hybrid Option (Performance as on January 12, 2007) Crisil MIP Blended Index 26.35 NA NA 26.50 **Reliance Regular Savings NA NA NA -1.00 13.01.2007 Fund Balanced Option (Performance as on January 13, 2007 to February 20, 2007) Crisil MIP Blended Index NA NA NA -0.005 Reliance Regular Savings 21.47 NA NA 12.10 13.01.2007 Fund-Balanced Option (Performance of the scheme from February 21, 2007 to 2008) Crisil Balanced Fund Index 19.48 NA NA 12.31 #Reliance Equity Linked NA NA NA NA Saving Fund Series I BSE 100 Index NA NA NA NA The returns have been calculated for the growth plan of the respective schemes as on 2008. Past performance may or may not be sustained in future. *Reliance Regular Savings Fund has three different plans viz Equity, Debt & Hybrid/ Balanced. The information pertaining to the scheme has been grouped under the Equity category due to change in asset allocation pattern of Hybrid Option (name changed to Balanced Option ) w.e.f. January 13, 2007. ** The Benchmark of Reliance Regular Savings Fund Balanced Option has been changed from CRISIL MIP Blended Index to CRISIL Balanced Fund Index with effect from February 21, 2007. # As the initial allotment of units in the scheme was made on 2008 itself, the absolute returns of the scheme as on 2008 is not applicable. Reliance NRI Equity Fund invests in Top 200 companies with a long term investment horizon. The fund manager looks at opportunities across various sectors with an endeavor to deliver better returns. Reliance NRI Equity Fund has underperformed the benchmark index, as the stocks in which it had concentrated position have corrected sharply. Reliance Index Fund, a passive Index Fund provides an opportunity to small investors to invest their resources in the Sensex/Nifty blue-chip stocks in proportion to their weight age within the index. The aim of this fund is to deliver returns in line with Index performance. The corpus of both the funds is small there is lag in actual allotment of units and investment hence the tracking error is reflected in its performance. Reliance Regular Savings Fund aims to invest in top companies across sectors with a long term investment horizon. The funds have outperformed due to shift of focus from mid cap to large cap and superior stock selection. Reliance Equity Linked Saving Fund - Series I, which was launched in December 2007, is still in the process of deploying the funds/constructing the portfolio and hence the cash position was significant. The fund is being gradually invested as and when the opportunities arise and/or are identified. Reliance Gold Exchange Traded Fund, an open-ended Gold ETF Compounded Annualised Returns (%) Name of the Scheme / 1 3 5 Since Date of Benchmark Index year years years Inception inception Reliance Gold Exchange NA NA NA 17.88 22.11.2007 Traded Fund Dividend Plan Domestic Price of Gold* NA NA NA 18.27 Note: The returns have been calculated for the Dividend plan as on 2008. Absolute returns have been calculated as the scheme has not completed one year since inception. Past performance may or may not be sustained in future. *As there are no indices catering to the gold sector/securities linked to Gold, currently GETF is benchmarked against the price of physical Gold. Gold prices valued in Indian terms have appreciated from around Rs 1035.59 per gram as on November 22, 2007 to Rs 1224.85 per gram as on March 31, 2008. Global geopolitical uncertainties, sub- prime losses, higher inflation figures, depreciating US dollar and the concerns over global growth slowdown were few of the major drivers for higher Gold prices. Outlook for Gold remains positive as long as an uncertainty over global financial markets prevails. At times less than 100% is invested in physical gold due to continuous subscription and redemption into the Scheme. Underinvestment in physical Gold generally gives rise to tracking error between the fund performance and actual Gold prices. Reliance Banking Fund, an open-ended banking sector scheme Compounded Annualised Returns (%) Name of the Scheme / 1 year 3 years 5 Since Date of Benchmark Index years Inception inception Reliance Banking Fund 43.43 26.64 NA 40.07 28.05.2003 S&P CNX Banks Index 25.96 23.85 NA 35.09 Note: The returns have been calculated for the growth plan as on 2008. Past performance may or may not be sustained in future. Over the last six months, banking sector has been witnessing hectic activity with RBI s move to curb the inflation.the fund manager has been able to manage the fund reasonably well in volatile conditions for banking stocks. The performance of Reliance Banking Fund was better than S&P CNX Banks index. Reliance Pharma Fund, an open-ended Pharma Sector Scheme Compounded Annualised Returns (%) Name of the Scheme / 1 year 3 years 5 Since Date of Benchmark Index years Inception inception Reliance Pharma Fund 11.04 21.69 NA 22.82 08.06.2004 BSE Health Care 5.41 14.66 NA 15.18 Note: The returns have been calculated for the growth planas on 2008. Past performance may or may not be sustained in future. Reliance Pharma Fund has a concentrated portfolio and top 3 holdings have a significant bearing on the portfolio performance. During the period under consideration the fund has underperformed its benchmark as its top holdings were in a consolidation phase however in the long term this fund is likely to outperform its benchmark. Reliance Media & Entertainment Fund, an open-ended media & entertainment sector scheme Name of the Scheme / Benchmark Index Reliance Media & Entertainment Fund S&P CNX Media & Entertainment Index Compounded Annualised Returns (%) 1 year 3 years 5 years Since Inception Date of inception 13.35 38.74 NA 33.89 07.10.2004-0.84 33.28 NA 27.09 Note: The returns have been calculated for the growth plan as on 2008. Past performance may or may not be sustained in future. In spite of being highly fragmented media industry in India is growing at a rapid pace. Increasing work force and rising income levels augurs well for the sustenance of these growth rates. Reliance Media & Entertainment Fund aims to capture on the opportunities arising within the sector. As the industry gets deregulated and better compliance sets in the revenue prospects for key players will increase multifold. The Fund Manager believes the profitability of the companies are set to rise, this fund has outperformed the benchmark index during period under consideration. Future Outlook The Indian mutual fund industry is one of the fastest growing sectors in the Indian capital and financial markets with 33 AMC s currently operating in country. Over the last few years, the mutual fund industry has grown at a scorching pace of 47 per cent per annum albeit on a small base of $19 billion. The mutual fund industry in India has seen dramatic improvements in quantity as well as quality of product and service offerings in recent years. Total Industry Average AUM is Rs. 5,28,935 Crore (130.6 Billion $) as of 31st March 2008. According to a study by global consultancy company McKinsey & Company. The Indian mutual fund industry s total assets under management (AMC) could grow at around 33 per cent year-on-year from $92 billion in March 2007 to $350-$440 billion by 2012. Annual Report 2007-2008 2
2. Brief background of Sponsors, Trust, Trustee Co. and AMC. a. Reliance Mutual Fund Reliance Mutual Fund (RMF) was set up as a Trust by the Settlers, Reliance Capital Limited on April 25, 1995 with Reliance Capital Trustee Co. Limited (the Trustee Company) as a Trustee in accordance with the provisions of the Indian Trust Act, 1882 and is duly registered under the Indian Registration Act, 1908. The Trustee has entered into an Investment Management Agreement dated May 12, 1995 with Reliance Capital Asset Management Ltd. (the AMC) to function as the Investment Manager for all the Schemes of RMF. The agreement was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. RMF was registered with SEBI on June 30, 1995. b. Reliance Capital Trustee Company The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unitholders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. 3. Investment Objective of the Schemes Reliance NRI Equity Fund (An Open-ended Diversified Equity Scheme): The primary investment objective of the scheme is to generate optimal returns by investing in equity and equity related instruments primarily drawn from the Companies in the BSE 200 Index. Reliance Index Fund - Sensex Plan (An Open-ended Index Linked Scheme): The objective of Sensex Plan is to replicate the composition of the Sensex, with a view to endeavor to generate returns, which could approximately be the same as that of Sensex. Reliance Index Fund - Nifty Plan (An Open-ended Index Linked Scheme): The objective of Nifty Plan is to replicate the composition of the Nifty, with a view to endeavor to generate returns, which could approximately be the same as that of Nifty. Reliance Regular Savings Fund (An open ended Scheme) Equity Option: The primary investment objective of this Option is to seek capital appreciation and/or to generate consistent returns by actively investing in equity / equity related securities. Balanced Option:The primary investment objective of this option is to generate consistent returns and appreciation of capital by investing in mix of securities comprising of Equity, Equity related instruments & fixed income instruments. Reliance Equity Linked Saving Fund Series I (A 10 year close-ended Equity Linked Savings Scheme): The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equities along with income tax benefit. Reliance Gold Exchange Traded Fund (An open-ended Gold ETF): Auditors Report To The Board of Directors of Reliance Capital Trustee Company Limited We have audited the attached Balance sheet of the schemes (As per Annexure) of Reliance Mutual Fund as at 31st March, 2008, the Revenue Account for the year/ period ended on that date annexed thereto and Cash Flow Statement for the year/ period ended on that date and report there on as follows: a) The Balance Sheet and the Revenue Account dealt with by this report 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 as amended up to date. These financial statements are the responsibility of the Management of the Trustee and the Asset Management Company. b) Our audit was conducted in accordance with the generally accepted auditing standards in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial Statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Financial Statements. We believe that our audit provides a reasonable basis for our opinion. c) 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. d) The Balance Sheet, the Revenue Account and Cash Flow Statement dealt with by this report are in agreement with the books of account of the Scheme. e) Non-traded securities have been valued in accordance with the guidelines notified by the Securities and Exchange Board of India. In our opinion, these valuations are fair and reasonable. The investment objective is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical Gold (and Gold related securities as permitted by Regulators from time to time). However, the performance of the scheme may differ from that of the domestic prices of Gold due to expenses and or other related factors. Reliance Banking Fund (An Open-ended Banking Sector Scheme): The primary investment objective of the scheme is to seek to generate continuous returns by actively investing in equity and equity related or fixed income securities of Banks. Reliance Pharma Fund (An Open-ended Pharma Sector Scheme): The primary investment objective of the scheme is to seek to generate consistent returns by investing in equity and equity related or fixed income securities of Pharma and other associated companies. Reliance Media & Entertainment Fund (An Openended Media & Entertainment Sector Scheme): The primary investment objective of the scheme is to generate consistent returns by investing in equity and equity related or fixed income securities of Media & Entertainment and other associated companies. 4. Significant Accounting Policies: Accounting policies followed by Reliance Mutual Fund are in accordance with Securities Exchange Board of India (Mutual Fund) Regulations, 1996. 5. Unclaimed Dividends & Redemptions (for all schemes mentioned above) Unclaimed Dividends Unclaimed Redemptions 2007-2008 2007-2008 No. of investors Amount (Rs.) No. of investors Amount (Rs.) NIL NIL 6. Statutory Information: a. The Sponsors are 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. 1 Lakh 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.reliancemutual. com) and shall be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder can obtain copy of the trust deed, the full Annual Report of the Fund / AMC at a price. For and on behalf of the Board of Trustees Reliance Capital Trustee Co. Limited Place: Mumbai A.N. Shanbhag P.P. Vora Date: August 28, 2008 Director Director f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the Scheme as at 31st March, 2008 and (ii) in the case of the Revenue Account, of the Surplus/(Deficit) of the Scheme for the year/period ended 31st March, 2008. (iii) in the case of Cash Flow Statement, of the cash flows for the year/period ended on that date. For HARIBHAKTI & CO. Chartered Accountants CHETAN DESAI Partner Membership No. 17000 Place: Mumbai Date: 28th August, 2008 Reliance Mutual Fund Annexure to Auditor s Report for the year/period ended 31st March, 2008 Reliance Banking Fund Reliance Pharma Fund Reliance Media & Entertainment Fund Reliance Index Fund - Sensex Plan Reliance Index Fund - Nifty Plan Reliance Equity Linked Saving Fund-Series I Reliance Regular Saving Fund-Equity Plan Reliance Regular Saving Fund Balanced Plan Reliance Nri Equity Fund Reliance Gold Exchange Traded Fund Annual Report 2007-2008 3
Abridged Balance Sheet as at 2008 Rupees in Lakhs RELIANCE BANKING FUND RELIANCE PHARMA FUND RELIANCE MEDIA & ENTERTAINMENT FUND RELIANCE NRI EQUITY FUND RELIANCE INDEX FUND - SENSEX PLAN LIABILITIES 1 Unit Capital 27,664.30 5,564.35 6,243.82 6,300.23 9,393.98 3,561.71 5,870.55 5,947.81 370.35 206.62 2 Reserves & Surplus 55,310.75 5,261.07 5,952.55 5,195.73 13,500.42 4,278.82 7,366.07 6,680.19 472.05 194.60 2.1 Unit Premium Reserves 46,220.15 1,238.64 (1,773.86) (1,648.67) 4,623.43 323.83 (726.81) (459.75) 125.01 35.90 2.2 Unrealised Appreciation Reserve - 2,020.67 153.85 2,337.14 175.21 343.86-181.60-16.44 2.3 Other Reserves 9,090.60 2,001.76 7,572.56 4,507.26 8,701.78 3,611.13 8,092.88 6,958.34 347.04 142.26 3 Loans & Borrowings - - - - - - - - - - 4 Current Liabilities & Provisions 3,231.25 111.08 265.23 351.31 744.71 363.29 370.04 636.82 27.81 10.75 4.1 Provision for doubtful Income/Deposits - - - - - - - - - - 4.2 Other Current Liabilities & Provisions 3,231.25 111.08 265.23 351.31 744.71 363.29 370.04 636.82 27.81 10.75 TOTAL 86,206.30 10,936.50 12,461.60 11,847.27 23,639.11 8,203.82 13,606.66 13,264.82 870.21 411.97 ASSETS 1 Investments 1.1 Listed Securities: 64,363.75 10,228.96 11,788.06 10,465.07 21,341.57 5,564.34 12,353.98 11,198.53 675.62 347.26 1.1.1 Equity Shares 63,573.60 10,228.96 11,788.06 10,443.69 21,341.57 5,564.34 12,353.98 11,198.53 675.62 347.26 1.1.2 Derivatives 790.15 - - 21.38 - - - - - - 1.2 Securities Awaited Listing: 315.57 - - - - - - - 5.10 7.25 1.2.1 Equity Shares 315.57 - - - - - - - 5.10 7.25 1.3 Unlisted Securities - - 15.55-175.21 - - - - - 1.3.1 Preference Shares - - - - 175.21 - - - - - 1.3.2 Securitised Debt securities - - 15.55 - - - - - - - 1.4 Certificate of Deposits - - - - - - - - - - Total Investments 64,679.32 10,228.96 11,803.61 10,465.07 21,516.78 5,564.34 12,353.98 11,198.53 680.72 354.51 2 Deposits 700.00 71.37-176.16 900.00 - - - - 0.23 3 Other Current Assets 20,826.98 636.17 657.99 1,206.04 1,201.12 2,604.23 1,150.33 1,900.76 188.38 55.51 3.1 Cash & Bank Balance 1,653.00 220.46 271.39 118.21 242.77 90.65 390.22 123.38 10.62 7.51 3.2 CBLO/ Reverse Repo Lending 18,685.06 338.00 376.00 1,059.00 873.00 2,423.49 736.00 1,372.00 77.00 46.00 3.3 Others 488.92 77.71 10.60 28.83 85.35 90.09 24.11 405.38 100.76 2.00 4 Deferred Revenue Expenditure (to the extent not written - - - - 21.21 35.25 102.35 165.53 1.11 1.72 off) TOTAL 86,206.30 10,936.50 12,461.60 11,847.27 23,639.11 8,203.82 13,606.66 13,264.82 870.21 411.97 Notes to Accounts - Annexure I Annual Report 2007-2008 4
Abridged Balance Sheet as at 2008 Rupees in Lakhs RELIANCE INDEX FUND - NIFTY PLAN RELIANCE REGULAR SAVING FUND - EQUITY PLAN RELIANCE REGULAR SAVINGS FUND - BALANCED PLAN RELIANCE EQUITY LINKED SAVING FUND - SERIES I RELIANCE GOLD EXCHANGE TRADED FUND LIABILITIES 1 Unit Capital 558.90 128.60 25,778.97 12,903.97 1,785.11 1,825.89 12,854.06 1,123.99 2 Reserves & Surplus 487.92 68.98 30,631.09 5,734.60 632.90 208.16 41.61 12,361.91 2.1 Unit Premium (14.99) (18.50) 9,170.54 1,081.01 (30.09) (4.37) - 9,911.24 Reserves 2.2 Unrealised - 14.88-7.46 - - - 1,960.84 Appreciation Reserve 2.3 Other Reserves 502.91 72.60 21,460.55 4,646.13 662.98 212.53 41.61 489.83 3 Loans & Borrowings - - - - - - - - 4 Current Liabilities & 10.55 39.43 1,627.91 1,314.50 67.12 151.24 662.18 17.44 Provisions 4.1 Provision for doubtful - - - - - - - - Income/Deposits 4.2 Other Current Liabilities 10.55 39.43 1,627.91 1,314.50 67.12 151.24 662.18 17.44 & Provisions TOTAL 1,057.37 237.01 58,037.97 19,953.07 2,485.13 2,185.29 13,557.85 13,503.34 ASSETS 1 Investments 1.1 Listed Securities: 819.45 198.32 48,844.74 16,117.37 1,458.35 1,104.47-13,350.90 1.1.1 Equity Shares 819.45 198.32 48,844.74 14,977.41 1,458.35 1,104.47-13,350.90 1.1.2 Derivatives - - - 1,139.96 - - - - 1.2 Securities Awaited Listing: 4.48 2.57 527.00-52.70 - - - 1.2.1 Equity Shares 4.48 2.57 527.00-52.70 - - - 1.3 Unlisted Securities - - - - - - - - 1.3.1 Preference Shares - - - - - - - - 1.3.2 Securitised Debt securities - - - - - - - - 1.4 Certificate of Deposits - - - - - 667.52 - - Total Investments 823.93 200.89 49,371.74 16,117.37 1,511.05 1,771.99-13,350.90 2 Deposits - 0.34-167.87-0.11 - - 3 Other Current Assets 228.80 28.63 8,666.23 3,667.83 974.08 413.19 12,786.82 152.44 3.1 Cash & Bank Balance 5.94 6.33 1,152.88 206.13 52.91 48.49 0.32 23.89 3.2 CBLO/ Reverse Repo Lending 170.00 3.00 6,493.00 2,293.00 868.00 191.00 12,787.00 57.00 3.3 Others 52.86 19.30 1,013.35 1,168.70 53.17 173.70 (0.50) 71.55 4 Deferred Revenue 4.64 7.15 - - - - 771.03 - Expenditure (to the extent not written off) TOTAL 1,057.37 237.01 58,037.97 19,953.07 2,485.13 2,185.29 13,557.85 13,503.34 Notes to Accounts - Annexure I Annual Report 2007-2008 5
Abridged Revenue Account For The Year / Period Ended 2008 RELIANCE BANKING FUND RELIANCE PHARMA FUND RELIANCE MEDIA & ENTERTAINMENT FUND RELIANCE NRI EQUITY FUND Rupees in Lakhs RELIANCE INDEX FUND - SENSEX PLAN 1 INCOME 1.1 Dividend 243.83 217.58 34.17 155.86 72.92 53.63 73.94 195.55 4.02 3.75 1.2 Interest 501.13 40.46 30.17 36.42 175.67 42.12 51.01 91.42 1.66 1.46 1.3 Realised Gain / (Loss) on Foreign - - - - - - - - - - Exchange Transactions 1.4 Realised Gains / (Losses) on (0.09) 14.22-144.05 (33.36) - - 79.09 - - Interscheme sale of investments 1.5 Realised Gains / (Losses) on External 2,039.34 383.13 3,415.08 2,066.14 1,650.95 1,136.10 3,332.30 3,166.71 70.71 57.99 sale / redemption of investments 1.6 Realised Gains / (Losses) on Derivative (164.08) (0.03) 1.30 31.33 4.21-24.76 312.31 - - Transactions 1.7 Other Income 88.24 $0.00 - - 131.20 - - - - - (A) 2,708.37 655.36 3,480.72 2,433.80 2,001.59 1,231.85 3,482.01 3,845.08 76.39 63.20 2 EXPENSES 2.1 Management fees 405.58 145.73 157.82 143.89 230.25 54.47 180.68 132.96 3.14 1.82 2.2 Service tax on Management fees 50.15 17.64 19.53 17.40 28.46 6.61 22.35 16.12 0.39 0.22 2.3 Transfer agents fees and expenses 40.36 14.92 14.27 13.96 26.42 5.03 4.14 11.10 0.57 0.76 2.4 Custodian fees 8.40 6.70 2.66 2.60 4.60 1.02 0.63 2.82 0.16 0.12 2.5 Trusteeship fees 0.12 0.03 0.04 0.03 0.06 0.01 0.05 0.02 - - 2.6 Commission to Agents 279.38 58.76 38.68 57.01 161.75 23.37-80.93 0.01-2.7 Marketing & Distribution expenses 11.23 4.25 5.63 10.55 8.27 1.70 134.75 6.18 0.18 0.09 2.8 Audit fees 0.19 0.11 0.06 0.11 0.10 0.04 0.08 0.10 - - 2.9 Other operating expenses 50.10 18.53 85.15 17.23 27.76 6.24 34.29 21.13 2.81 1.21 2.10 Deferred Revenue Expenses written off - - - - 14.04 14.00 63.17 63.00 0.60 0.60 (B) 845.51 266.67 323.84 262.78 501.71 112.49 440.14 334.36 7.86 4.82 3 NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C) 1,862.86 388.69 3,156.88 2,171.02 1,499.88 1,119.37 3,041.87 3,510.72 68.53 58.38 NET GAIN/(LOSS) BROUGHT FORWARD 2,001.76 4,416.09 4,507.26 3,463.76 3,611.13 1,403.90 6,958.34 3,845.14 142.26 33.63 FROM PREVIOUS YEAR 4 Change in Unrealised Depreciation in value of (7,591.08) - 0.04 (0.04) (1,994.89) - (410.32) - (7.85) - investments (D) 5 NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E=(C+D)) (3,726.46) 4,804.78 7,664.18 5,634.74 3,116.12 2,523.27 9,589.89 7,355.86 202.94 92.01 6 Change in unrealised appreciation in the value - - - - of investments (F) 7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD (E + F = G) (3,726.46) 4,804.78 7,664.18 5,634.74 3,116.12 2,523.27 9,589.89 7,355.86 202.94 92.01 7.1 Add: Balance transfer from Unrealised Appreciation Reserve 7.2 Less: Balance transfer to Unrealised Appreciation Reserve 7.3 Add / (Less): Equalisation 14,375.48 (1,895.67) 391.78 (610.73) 6,334.50 1,490.22 (238.83) 713.93 144.10 50.25 8 Total 10,649.02 2,909.11 8,055.96 5,024.01 9,450.62 4,013.49 9,351.06 8,069.79 347.04 142.26 9 Dividend appropriation 9.1 Income Distributed during the year / 1,558.42 907.35 483.40 516.75 748.84 402.36 1,258.18 1,111.45 - - period 9.2 Tax on income distributed during the year / period 10 Retained Surplus / (Deficit) carried forward to Balance sheet 9,090.60 2,001.76 7,572.56 4,507.26 8,701.78 3,611.13 8,092.88 6,958.34 347.04 142.26 Notes to Accounts - Annexure I Annual Report 2007-2008 6
RELIANCE INDEX FUND - NIFTY PLAN RELIANCE REGULAR SAVING FUND - EQUITY PLAN RELIANCE REGULAR SAVINGS FUND - BALANCED PLAN RELIANCE EQUITY LINKED SAVING FUND - SERIES I Period Ended Rupees in Lakhs RELIANCE GOLD EXCHANGE TRADED FUND Period Ended 1 INCOME 1.1 Dividend 4.03 1.83 200.05 168.19 10.95 4.83 - - 1.2 Interest 1.98 0.70 148.26 67.10 47.22 15.57 42.67 40.45 1.3 Realised Gain / (Loss) on Foreign - - - - - - - - Exchange Transactions 1.4 Realised Gains / (Losses) on Interscheme sale of investments 1.5 Realised Gains / (Losses) on External sale / redemption of investments 1.6 Realised Gains / (Losses) on Derivative Transactions - - 272.30 46.03 (23.25) (0.01) - - 74.20 4.24 8,465.00 1,545.68 651.29 17.28-533.54 - - - - - - - - 1.7 Other Income 0.02 - - - - - - - (A) 80.23 6.77 9,085.61 1,827.00 686.21 37.67 42.67 573.99 2 EXPENSES 2.1 Management fees 2.61 0.61 344.30 109.94 18.20 2.82 0.40 26.19 2.2 Service tax on Management fees 0.32 0.07 42.55 13.41 2.23 0.37 $0.00 3.24 2.3 Transfer agents fees and expenses 0.81-36.37 14.30 2.69 2.47 - - 2.4 Custodian fees 0.13 0.05 10.37 3.28 0.58 0.13 0.14 1.38 2.5 Trusteeship fees 0.00 0.00 0.10 0.02 0.01 $0.00 0.04 0.04 2.6 Commission to Agents - - 210.04 59.06 8.34 - - - 2.7 Marketing & Distribution expenses 0.11 0.01 19.63 3.67 1.18 0.10 - - 2.8 Audit fees $0.00 $0.00 0.16 0.09 0.01 $0.00 0.06 0.07 2.9 Other operating expenses 2.33 0.95 109.06 36.32 21.36 2.57 0.21 21.45 2.10 Deferred Revenue Expenses written off 2.51 2.50 - - - - 0.21 - (B) 8.82 4.19 772.58 240.09 54.60 8.45 1.06 52.37 3 NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C) 71.41 2.58 8,313.03 1,586.91 631.61 29.22 41.61 521.62 NET GAIN/(LOSS) BROUGHT FORWARD FROM PREVIOUS YEAR 4 Change in Unrealised Depreciation in value of investments (D) 5 NET GAIN S / (LOSSES) FOR THE YEAR / PERIOD (E=(C+D)) 6 Change in unrealised appreciation in the value of investments (F) 7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD (E + F = G) 72.60 46.91 4,646.13 309.71 212.53 3.57 - - (35.43) - (4,401.40) (611.31) (220.63) (43.21) - - 108.58 49.49 8,557.76 1,285.31 623.51 (10.42) 41.61 521.62 - - - - - - - 108.58 49.49 8,557.76 1,285.31 623.51 (10.42) 41.61 521.62 7.1 Add: Balance transfer from Unrealised Appreciation Reserve 7.2 Less: Balance transfer to Unrealised Appreciation Reserve 7.3 Add / (Less): Equalisation 394.33 23.11 12,902.79 3,360.82 39.47 222.96-31.79 8 Total 502.91 72.60 21,460.55 4,646.13 662.98 212.53 41.61 489.83 9 Dividend appropriation 9.1 Income Distributed during the year / - - - - - - period 9.2 Tax on income distributed during the year / period 10 Retained Surplus / (Deficit) carried forward to Balance sheet 502.91 72.60 21,460.55 4,646.13 662.98 212.53 41.61 489.83 $-Less than 0.01 lakhs Notes to Accounts - Annexure I Annual Report 2007-2008 7
Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Year / Period ended 2008 1 Investments:- 1.1. All the investments are held in the name of the Scheme, as per clause 7 of the Seventh Schedule under Regulation 44(1) of SEBI (Mutual Funds) Regulations, 1996. 1.2. Open Position of derivatives (outstanding market value & % to Net Assets as of the Year end). 2007-2008 2006-2007 Reliance natural resources fund Long Positions Short Positions Long Positions Short Positions Market Value % to net assets Market Value % to net assets Market Value % to net assets Market Value % to net assets RELIANCE BANKING FUND Futures 790.15 0.95% - - - - - - RELIANCE PHARMA FUND Futures - - - - 21.38 0.19% - - RELIANCE REGULAR SAVINGS FUND EQUITY PLAN Futures - - - - 1,139.96 6.12% - - 1.3. Investments in Associates and Group Companies 2007-2008 2006-2007 Scheme Name Amount Aggregate Amount Issuer Instrument (Rs. In Investments Issuer Instrument (Rs. In lakhs) lakhs) RELIANCE MEDIA & Adlabs Films Adlabs Films Limited Equity 920.33 920.33 ENTERTAINMENT FUND Limited RELIANCE NRI EQUITY Reliance Communications Ltd Equity 509.75 76,995.66 - FUND Reliance Energy Ltd Equity 1,000.68 84,239.35 - Reliance Energy Limited Equity 12.21 Reliance Energy 84,239.35 RELIANCE INDEX FUND- SENSEX PLAN RELIANCE INDEX FUND NIFTY PLAN RELIANCE REGULAR SAVINGS FUND EQUITY PLAN RELIANCE REGULAR SAVINGS FUND BALANCED PLAN Limited Reliance Reliance Communications Equity 23.15 76,995.66 Communications Limited Limited Reliance Energy Reliance Energy Limited Equity 8.61 84,239.35 Limited Reliance Reliance Communications Equity 30.57 76,995.66 Communications Limited Limited Reliance Communications Ltd Equity 1,529.25 76,995.66 - Reliance Energy Ltd Equity 1,109.30 84,239.35 - Reliance Communications Ltd Equity 101.95 76,995.66 1.4. There are NIL Open position of Securities Borrowed and / or Lent by the scheme. 1.5. There are no NPA s as on 2008 1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Year / Period and percentage to net assets. Reliance Energy Limited Aggregate Investments Equity 414.90 414.90 Equity 3.37 31,766.76 Equity 12.80 48,694.96 Equity 1.13 31,766.76 Equity 9.06 48,694.96 Equity 49.42 31,766.76 2007-2008 2006-2007 Scheme Name Aggregate Unrealised % of Net Assets Aggregate Unrealised % of Net Assets Gain / (Loss) Gain / (Loss) RELIANCE BANKING FUND (7,591.07) -9.15% 2,021 18.67% RELIANCE PHARMA FUND 153.85 1.26% 2,337 20.33% RELIANCE MEDIA & ENTERTAINMENT FUND (1,819.68) -7.95% 343.86 4.39% RELIANCE NRI EQUITY FUND (410.32) -3.10% 181.60 1.44% RELIANCE INDEX FUND- SENSEX PLAN (7.85) -0.93% 16.44 4.10% RELIANCE INDEX FUND NIFTY PLAN (35.43) -3.38% 14.88 7.53% RELIANCE REGULAR SAVINGS FUND EQUITY PLAN (5,012.71) -8.89% -603.85-3.24% RELIANCE REGULAR SAVINGS FUND BALANCED PLAN (263.84) -10.91% -43.21-2.12% RELIANCE GOLD EXCHANGE TRADED FUND 1,960.84 14.54% - - Annual Report 2007-2008 8
1.7. Aggregate Value of Purchase and Sale with Percentage to average assets. Amount (Rs.in lakhs) 2007-2008 2006-2007 Purchases Sales Purchases Sales % to Amount % to Amount % to Amount average (Rs.in average (Rs.in average (Rs.in Net Assets lakhs) Net Assets lakhs) Net Assets lakhs) % to average Net Assets RELIANCE BANKING FUND 86,351.44 226.73% 23,633.05 62.05% 748.78 6.19% 7,682.24 63.52% RELIANCE PHARMA FUND 10,990.76 82.75% 10,928.24 82.28% 6,732.59 56.63% 9,655.73 81.22% RELIANCE MEDIA & ENTERTAINMENT FUND 23,300.54 113.15% 6,036.71 29.32% 6,578.32 149.51% 4,170.91 94.80% RELIANCE NRI EQUITY FUND 21,314.36 135.75% 22,924.05 146% 56,850.08 514.02% 57,177.96 516.99% RELIANCE INDEX FUND- SENSEX PLAN 707.38 146.02% 427.82 88.31% 730.20 258.56% 586.38 207.63% RELIANCE INDEX FUND NIFTY PLAN 1,794.25 412.04% 1,195.45 274.53% 174.17 136.73% 58.93 46.26% RELIANCE REGULAR SAVINGS FUND EQUITY PLAN 88,273.79 276.48% 59,311.86 185.77% 40,802.56 417.47% 28,282.12 289.37% RELIANCE REGULAR SAVINGS FUND BALANCED PLAN 4,856.35 200.13% 5,544.59 228.49% 2,405.18 639.51% 628.73 167.17% RELIANCE GOLD EXCHANGE TRADED FUND 15,187.43 104.58% 4,330.91 29.82% NIL 1.8. Non-Traded securities in the portfolio 2007-2008 2006-2007 Amount % to Net Assets Amount % to Net Assets RELIANCE BANKING FUND Equity 315.57 0.38% - - Debt - - - - Money Market - - - - RELIANCE PHARMA FUND Equity - - - - Debt 15.55 0.13% - - Money Market - - - - RELIANCE MEDIA & ENTERTAINMENT FUND Equity 175.21 0.77% - - Debt - - - - Money Market - - - - RELIANCE INDEX FUND- SENSEX PLAN Equity 5.10 0.61% 7.25 1.81% Debt - - - - Money Market - - - - RELIANCE INDEX FUND NIFTY PLAN Equity 4.47 0.43% 2.57 1.30% Debt - - - - Money Market - - - - RELIANCE REGULAR SAVINGS FUND EQUITY PLAN Equity 527.00 0.93% - - Debt - - - - Money Market - - - - RELIANCE REGULAR SAVINGS FUND BALANCED PLAN Equity 52.70 2.18% - - Debt - - - - Money Market - - 667.52 32.82% 2. Details of Transaction with Associates under regulation 25(8). Scheme Name 2007-2008 2006-2007 RELIANCE BANKING FUND Associates Brokerage on Distribution of Units Brokerage on Investments Associates Brokerage on Distribution of Units Reliance Money Limited 0.27 - Reliance Money Limited 0.00 Reliance Securities Limited 12.52 6.99 R-Trade Securities 3.78 Indusind Bank Limited 1.32 - - - Brokerage on Investments Annual Report 2007-2008 9
Scheme Name 2007-2008 2006-2007 RELIANCE PHARMA FUND RELIANCE MEDIA & ENTERTAINMENT FUND RELIANCE NRI EQUITY FUND RELIANCE INDEX FUND- SENSEX PLAN RELIANCE INDEX FUND NIFTY PLAN RELIANCE REGULAR SAVINGS FUND EQUITY PLAN RELIANCE REGULAR SAVINGS FUND BALANCED PLAN RELIANCE GOLD EXCHANGE TRADED FUND Associates Brokerage on Distribution of Units Brokerage on Investments Associates Brokerage on Distribution of Units Reliance Securities Limited 0.49 0.38 R-Trade Securities 0.31 Reliance Money Limited 0.00 - - Indusind Bank Limited 0.13 - - Reliance Money Limited 0.01 - Reliance Money Limited 0.00 Reliance Securities Limited 10.43 - R-Trade Securities 0.81 Indusind Bank Limited 0.73 - - Reliance Money Limited 0.28 - R-Trade Securities 0.38 Reliance Securities Limited 0.61 0.45 - Indusind Bank Limited 1.11 - - Reliance Money Limited 0.00 - R-Trade Securities 0.08 Reliance Securities Limited 0.13 - - Indusind Bank Limited 0.00 - - Reliance Money Limited 0.00 - R-Trade Securities 0.03 Reliance Securities Limited 0.18 - - Indusind Bank Limited 0.00 - - Reliance Money Limited 0.02 - Reliance Money Limited 0.01 Reliance Securities Limited 13.84 12.47 R-Trade Securities 5.42 Indusind Bank Limited 0.85 - Reliance Securities Limited 0.28 0.69 R-Trade Securities 1.22 Indusind Bank Limited 0.01 - Indusind Bank Limited 0.11 - NIL Reliance Securities Limited 3.53-3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets). - NIL 4 Unit Capital movement during the year ended / period ended.* Number of units 2007-2008 2006-2007 Amount Number of units Brokerage on Investments Amount RELIANCE BANKING FUND Initial subscription/opening Units 55,643,507.817 5,564.35 73,943,077.770 7,394.31 Units issued during the year 312,337,827.151 31,233.78 36,137,411.928 3,613.74 Units repurchased during the year 91,338,349.800 9,133.83 54,436,981.881 5,443.70 Closing units at the end of the year 276,642,985.168 27,664.30 55,643,507.817 5,564.35 RELIANCE PHARMA FUND Initial subscription/opening Units 63,002,338.210 6,300.23 76,066,859.786 7,606.69 Units issued during the year 33,901,499.916 3,390.15 21,550,747.149 2,155.07 Units repurchased during the year 34,465,686.546 3,446.57 34,615,268.725 3,461.53 Closing units at the end of the year 62,438,151.580 6,243.82 63,002,338.210 6,300.23 RELIANCE MEDIA & ENTERTAINMENT FUND Initial subscription/opening Units 35,617,095.269 3,561.71 20,926,221.237 2,092.62 Units issued during the year 119,129,647.247 11,912.96 45,687,014.853 4,568.70 Units repurchased during the year 60,806,910.458 6,080.69 30,996,140.821 3,099.61 Closing units at the end of the year 93,939,832.058 9,393.98 35,617,096.269 3,561.71 RELIANCE NRI EQUITY FUND Initial subscription/opening Units 59,478,131.553 5,947.81 55,701,677.371 5,570.17 Units issued during the year 12,377,827.501 1,237.78 19,194,201.475 1,919.42 Units repurchased during the year 13,150,423.640 1,315.04 15,417,747.293 1,541.77 Closing units at the end of the year 58,705,535.414 5,870.55 59,478,131.553 5,947.81 Annual Report 2007-2008 10
Number of units 2007-2008 2006-2007 Amount Number of units Amount RELIANCE INDEX FUND NIFTY PLAN Initial subscription/opening Units 1,286,000.991 128.60 844,041.647 84.40 Units issued during the year 11,327,899.425 1,132.79 1,162,880.363 116.29 Units repurchased during the year 7,024,900.879 702.49 720,921.019 72.09 Closing units at the end of the year 5,588,999.537 558.90 1,286,000.991 128.60 RELIANCE REGULAR SAVINGS FUND EQUITY PLAN Initial subscription/opening Units 18,258,943.305 1,825.89 1,763,100.039 176.31 Units issued during the year 12,548,998.739 1,254.90 19,419,191.159 1,941.92 Units repurchased during the year 12,956,853.772 1,295.69 2,923,347.893 292.33 Closing units at the end of the year 17,851,088.272 1,785.11 18,258,943.305 1,825.89 RELIANCE REGULAR SAVINGS FUND BALANCED PLAN Initial subscription/opening Units 18,258,943.305 1,825.89 1,763,100.039 176.31 Units issued during the year 12,548,998.739 1,254.90 19,419,191.159 1,941.92 Units repurchased during the year 12,956,853.772 1,295.69 2,923,347.893 292.33 Closing units at the end of the year 17,851,088.272 1,785.11 18,258,943.305 1,825.89 *Face Value of all schemes is Rs. 10 except for Reliance Gold Exchange Traded Fund face value of which is Rs. 100 2007-2008 Number of units Amount RELIANCE EQUITY LINKED SAVING FUND - SERIES I Initial subscription/opening Units 128,540,567.673 12,854.06 Units issued during the period - - Units repurchased during the period - - Closing units at the end of the period 128,540,567.673 12,854.06 RELIANCE GOLD EXCHANGE TRADED FUND Initial subscription/opening Units 1,428,006.931 1,428.01 Units issued during the period 141,602.638 141.60 Units repurchased during the period 445,623.141 445.62 Closing units at the end of the period 1,123,986.428 1,123.99 5 Prior Year Comparatives: The figures of the previous period have been regrouped / rearranged, wherever applicable, to conform to current year s presentation Since these are the first financials for Reliance Equity Saving Linked Scheme - Series I and Reliance Gold Exchange Traded Fund, there are no comparative figures for the previous year 6 Contingent Liability - NIL 7 Expenses other than management fee is inclusive of service tax where applicable. Annual Report 2007-2008 11
Key Statistics for the year / period ended 2008 RELIANCE BANKING FUND RELIANCE PHARMA FUND RELIANCE MEDIA & ENTERTAINMENT FUND 2008 2007 2008 2007 2008 2007 RELIANCE NRI EQUITY FUND 2008 2007 RELIANCE INDEX FUND - SENSEX PLAN 2008 2007 1. NAV per unit (Rs.): Regular Growth Open 35.87 31.54 19.7192 19.9708 24.3885 18.9796 23.3548 18.7868 19.2944 17.1036 High 70.62 39.87 31.4734 21.4614 42.9961 25.8261 40.1273 25.9362 29.7021 21.3279 Low 33.68 23.58 19.3429 14.0113 23.8082 13.6312 22.4601 15.1686 18.4907 13.8585 End 51.50 35.87 21.9090 19.7192 27.6537 24.3885 27.3750 23.3548 22.6025 19.2944 Bonus Open 35.87 31.54 19.7192 19.9708 24.3885 18.9796 23.3548 18.7868 19.2944 17.1036 High 70.62 39.87 31.4734 21.4614 42.9961 25.8261 40.1273 25.9362 29.7021 21.3279 Low 33.68 23.58 19.3429 14.0113 23.8082 13.6312 22.4601 15.1686 18.4907 13.8585 End 51.50 35.87 21.9090 19.7192 27.6537 24.3885 27.3750 23.3548 22.6025 19.2944 Dividend Open 16.63 16.32 17.0994 18.7899 20.3663 17.7756 19.8328 18.7868 19.2944 17.1036 High 30.40 20.62 27.2918 20.1936 35.9167 23.3208 31.0633 24.3375 29.7021 21.3279 Low 15.61 12.20 15.9285 13.1837 19.8817 12.7618 18.5751 15.1686 18.4907 13.8585 End 22.18 16.63 17.3621 17.0994 21.6013 20.3663 19.6057 19.8328 22.6025 19.2944 2. Closing Assets Under Management (Rs. in Lakhs) End 82,975.05 10,825.42 12,196.37 11,495.96 22,894.40 7,840.53 13,236.62 12,627.99 842.41 401.21 Average(AAuM) 38,085.06 12,093.63 13,281.46 11,889.06 20,592.29 4,399.90 15,701.28 11,059.87 484.45 282.41 3. Gross income as % of AAuM1 7.11% 5.42% 26.21% 20.47% 9.72% 28.00% 22.18% 34.77% 15.77% 22.38% 4. Expense Ratio: a. Total Expense as % of 2.22% 2.21% 2.44% 2.21% 2.37% 2.24% 2.40% 2.45% 1.50% 1.49% AAuM (plan wise) b. Management Fee as % 1.06% 1.21% 1.19% 1.21% 1.12% 1.24% 1.15% 1.20% 0.65% 0.64% of AAuM (plan wise) 5. Net Income as a percentage 4.89% 3.21% 23.77% 18.26% 7.28% 25.44% 19.37% 31.74% 14.15% 20.67% of AAuM2 6. Portfolio turnover ratio4 0.61 0.06 0.82 0.57 0.29 1.50 1.36 5.06 0.88 2.08 7. Total Dividend per unit distributed during the year / period (plan wise) Dividend 2.00 2.00 1.50 1.50 1.50 2.50 3.50 3.50 - - 8. Returns: a. Last One Year Growth Plan/Option 43.43% 14.60% 11.04% 1.47% 13.35% 29.02% 17.16% 25.11% 17.09% 12.47% Benchmark 25.96% 15.20% 5.41% -5.04% -0.84% 42.68% 23.99% 10.58% 19.56% 15.61% b. Since Inception Growth Plan/Option 40.07% 39.23% 22.82% 27.33% 33.89% 43.28% 34.68% 42.92% 29.71% 36.13% Benchmark 35.09% 37.64% 15.18% 18.90% 27.09% 43.07% 30.65% 33.59% 31.96% 38.23% Annual Report 2007-2008 12
Key Statistics for the year / period ended 2008 RELIANCE INDEX FUND - NIFTY PLAN 2008 2007 RELIANCE REGULAR SAVING FUND - EQUITY PLAN 2008 2007 RELIANCE REGULAR SAVINGS FUND - BALANCED PLAN 2008 2007 RELIANCE EQUITY LINKED SAVING FUND - SERIES I 2008 RELIANCE GOLD EXCHANGE TRADED FUND 2007 1. NAV per unit (Rs.): Regular Growth Open 15.4027 14.3671 14.4441 11.8619 11.1400 10.3040 - - High 23.4322 17.0203 31.4710 16.3790 17.5339 11.7530 10.0000 - Low 14.6311 12.1694 13.9004 9.3480 10.8649 10.1920 10.0000 - End 18.7260 15.4027 21.8823 14.4441 13.5454 11.1400 10.0324 - Bonus Open 15.4027 14.3671 - - - - - - High 23.4322 17.0203 - - - - - - Low 14.6311 12.1694 - - - - - - End 18.7260 15.4027 - - - - - - Dividend Open 15.4027 14.3671 - - - - - - High 23.4322 17.0203 - - - - 10.0000 - Low 14.6311 12.1694 - - - - 10.0000 - End 18.7260 15.4027 - - - - 10.0324 - Dividend Payout Open - - - - - - - - High - - - - - - - 1,336.2518 Low - - - - - - - 1,005.6176 End - - - - - - - 1,199.8276 2. Closing Assets Under Management (Rs. in Lakhs) End 1,046.82 197.58 56,410.06 18,638.56 2,418.01 2,034.05 12,895.67 13,485.90 Average(AAuM) 435.45 127.38 31,927.86 9,773.71 2,426.59 376.10 12,895.67 14,521.94 3. Gross income as % of AAuM1 18.43% 5.32% 28.46% 18.69% 28.28% 10.02% 0.33% 3.95% 4. Expense Ratio: a. Total Expense as % of AAuM (plan wise) 1.45% 1.33% 2.42% 2.46% 2.25% 2.25% 2.40% 1.00% b. Management Fee as % of AAuM (plan wise) 0.60% 0.48% 1.08% 1.12% 0.75% 0.75% 1.13% 0.50% 5. Net Income as a percentage of AAuM2 16.40% 2.03% 26.04% 16.24% 26.03% 7.77% 0.32% 3.59% 6. Portfolio turnover ratio4 2.74 0.46 1.86 2.76 2.00 1.67 - - 7. Total Dividend per unit distributed during the year / period (plan wise) Dividend - - - - - - - - 8. Returns: a. Last One Year Growth Plan/Option 21.51% 6.85% 51.32% 22.43% 21.47% 14.40% - - Benchmark 23.74% 11.78% 24.83% 11.70% 19.48% 9.14% - - b. Since Inception Growth Plan/Option 22.16% 22.51% 32.01% 22.43% 12.10% 9.57% - 17.88% Benchmark 30.42% 33.68% 33.28% 38.24% 12.31% 10.20% - 18.27% For and on behalf of Reliance Capital Asset Management Limited For and on behalf of Reliance Capital Trustee Co.Limited Soumen Ghosh Director Vikrant Gugnani CEO Kanu Doshi Director Madhusudan Kela Head - Equities A.N. Shanbhag Director P.P. Vora Director Omprakash Kuckian Fund Manager Sunil Singhania Fund Manager Sailesh Raj Bhan Fund Manager Ashwani Kumar Fund Manager Mumbai Date:- August 28, 2008 Annual Report 2007-2008 13
VARIOUS addenda to the Offer Documents Addendum dated April 16, 2007 to the offer documents of Reliance NRI Equity Fund, Reliance Index Fund, Reliance Regular Savings Fund, Reliance Banking Fund, Reliance Pharma Fund, Reliance Media & Entertainment Fund Notice is hereby given that Reliance Mutual Fund (RMF) has decided to introduce the following additional facilities under above mentioned schemes of RMF with effect from April 17, 2007. Reliance Salary Advatange This is a facility offered to the individual investors of the above mentioned scheme. The Salient Features of Reliance Salary Advantage are as follows. Under this program, an employer enters into an agreement with RMF to deduct the desired amount from the salary of the employees and remit the same to RMF through a consolidated cheque/fund transfer/debit instruction. The employer shall have the flexibility to decide any date (working day) of the month of the quarter on which the said deduction shall be made and remitted to RMF Subsequent monthly/quarterly deductions will happen each month/quarter on the specified date. Minimum investment criteria as applicable under SIP shall also be applicable under Reliance Salary Advantage. All the facilities available to other investor investing in the above mentioned schemes through other conventional modes such as STP, SWP, ATM Card etc. shall also be available to investors investing through Reliance Salary Advantage. Addendum dated June 7, 2007 to the offer document of reliance regular savings fund and reliance banking fund Notice is hereby given that the Offer Document of the above mentioned schemes of Reliance Mutual Fund (RMF) has been modified pursuant to the guidelines issued by SEBI vide circular no. SEBI/IMD/CIR No. 7/73202/06 dated August 2, 2006 to incorporate the following with imeediate effect: Additions in the paragraph titled Exposure for foreign equity securities : i) The scheme, subject to SEBI guidelines issued from time to time, may have an exposure of upto 50% of its net assets in foreign equity securities. However, the exposure in such foreign equity securities would not exceed the maximum amount permitted from time to time. ii) Such investment shall be disclosed while disclosing half-yearly portfolios in the prescrbed format by making a separate heading Foreign Securities/overseas ETFs. Scheme-wise percentage of investments made in such sucurities shall be disclosed while publishing half-yearly results in the prescribed format, as a footnote. All the other terms and conditions mentioned in the Offer Document of the scheme remain unchanged. This addendum forms an integral part of the Offer Document issued for scheme, read with the Addenda issued from time to time. Addendum dated october 31, 2007 to the offer document of reliance gold exchange traded fund Notice is hereby given that in order to have a greater reach and facilitate easy access for submission of applications, additional collection centers for the NFO of Reliance Gold Exchange Traded Fund, an open ended Gold ETF of Reliance Mutual Fund, has been introduced that are as follows: HDFC Bank: Faridabad, Tirupur. Investors are requested to take note of the above. All the other terms and conditions mentioned in the Offer Document of the scheme remain unchanged. This addendum forms an integral part of the Offer Document, read with the Addenda issued from time to time. ADDENDUM DATED DECEMBER 18, 2007 to the offer document of Reliance equity linked saving fund Fund - series i Notice is hereby given that Mr. Sailesh Raj Bhan shall be the Fund Manager of Reliance Equity Linked Saving Fund Series I, a 10 year close-ended Equity Linked Savings Scheme, instead of Mr. Omprakash Kuckian. ADDENDUM DATED DECEMBER 31, 2007 to the offer document of Reliance Regular Savings Fund Notice is hereby given that Reliance Mutual Fund (RMF) has decided to introduce an additional facility of Systematic Transfer Plan and Dividend Transfer Plan under Reliance Regular Savings Fund, an open-ended scheme of RMF, with effect from January 1, 2008. A. Systematic Transfer Plan (STP) Unit holders can transfer their investments from the following schemes of Reliance Mutual Fund to Reliance Regular Savings Fund and vice versa, as detailed herein: 1. Reliance Growth Fund 2. Reliance Vision Fund 3. Reliance Income Fund 4. Reliance Liquid Fund 5. Reliance Medium Term Fund 6. Reliance Short Term Fund 7. Reliance Banking Fund 8. Reliance Gilt Securities Fund 9. Reliance Monthly Income Plan 10. Reliance Diversified Power Sector Fund 11. Reliance Pharma Fund 12. Reliance Floating Rate Fund 13. Reliance Media & Entertainment Fund 14. Reliance Equity Opportunities Fund 15. Reliance Tax Saver (ELSS) Fund* *(subject to the lock - in period of three years) 16. Reliance Equity Fund 17. Reliance Liquidity Fund 18. Reliance Equity Advantage Fund 19. Reliance Long Term Equity Fund** 20. Reliance Index Fund **(only after conversion into an open-ended scheme upon maturity) The above list of schemes is subject to change. Plans Offered Investors can choose between the following plans: (i) (ii) Fixed Systematic Transfer Plan The Unit holder in all the plans/options of the above -mentioned schemes except the daily dividend option will be eligible to transfer a fixed amount to any plan/option of the open-ended schemes of Reliance Mutual Fund on the dates specified under: Frequency Dates Minimum Amount Weekly 1st, 8th, 15th and 22nd of every month Rs. 1000 on each execution date and in multiples of Rs. 100 thereof Fortnightly 1st and 15th of every month Monthly Any pre-specified date of the month Quarterly Any pre-specified date in the first month of the quarter Rs. 3000 on each execution date in case of quarterly option and in multiples of Rs. 100 thereof Capital Appreciation Systematic Transfer Plan- The Unit holders in Growth plans/options of the above-mentioned schemes will be eligible to transfer the capital appreciation to any plan/option of Reliance Regular Savings Fund on the dates specified under: Frequency Dates Minimum Amount Monthly 1st of every month Rs. 500/ - Quarterly 1st of the starting month of every quarter Annual Report 2007-2008 14