NATIONAL PENSION SYSTEM TRUST NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER I. BALANCE SHEET AS AT March 31, 2018 (UNAUDITED) Total.

NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER I BALANCE SHEET AS AT March 31, 2018 (UNAUDITED) Schedules Liabilities Unit Capital 1 705,304,381 417,541,928 Reserves and Surplus 2 1,047,252,707 515,503,272 Current Liabilities and Provisions 3 2,856,975 1,119,206 Total 1,755,414,063 934,164,406 Assets Investments 4 1,753,205,822 933,526,850 Deposits 5 - - Other Current Assets 6 2,208,241 637,556 Total Significant Accounting Policies and Notes to Accounts 7 1,755,414,063 934,164,406 - - For KOTAK MAHINDRA PENSION FUND LTD Balan Wasudeo Gaurang Shah Sandeep Shrikhande Chief Executive Officer AN Vinod Fund Manager Place: Mumbai Date: April 23, 2018

NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER I REVENUE ACCOUNT FOR THE HALF-YEAR ENDED MARCH 31, 2018 (UNAUDITED) Particulars Half-Year ended Half-Year ended March 31, 2018 March 31, 2017 Income Dividend - - Interest - - Profit on sale/redemption of investments 477,690 23,072,449 Profit on inter-scheme transfer/sale of investments - - Unrealized gain on appreciation in investments 26,552,210 40,902,542 Other income - - - Miscellaneous Income - - Total 27,029,900 63,974,991 Expenses and Losses Unrealized losses in value of investments - - Loss on sale/redemption of investments - 2,064,358 Loss on inter-scheme transfer/sale of investments - - Management fees (including service tax / GST) 89,708 35,993 Trustee Fees 76,025 35,993 Custodian fees (676) (4,988) Depository and settlement charges - - CRA Fees 1,227,076 1,039,603 Less: Amount recoverable on sale of units on account of CRA Charges (1,227,076) (1,039,603) Trustee Bank's fees - - Other Expenses, if any - - Total 165,057 2,131,356 Surplus/(Deficit) for the year 26,864,843 61,843,635 Add /(Less): Amount transferred from / (to) Unrealised Appreciation Account (26,552,210) (40,902,542) Less: Amount transferred to General Reserve^ (312,633) (20,941,093) Amount carried forward to Balance Sheet - - ^ known as Revenue Reserve in earlier years Significant Accounting Policies and Notes to Accounts 7 For KOTAK MAHINDRA PENSION FUND LTD Balan Wasudeo Gaurang Shah Sandeep Shrikhande Chief Executive Officer AN Vinod Fund Manager Place: Mumbai Date: April 23, 2018

NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER I NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET (UNAUDITED) AS AT MARCH 31, 2018 Schedule 1 Unit Capital Initial Capital* 250 250 Outstanding at the beginning of the year 519,082,845 300,993,805 Add: Units issued during the period 215,446,805 127,283,930 Less: Units redeemed during the period (29,225,269) (10,735,807) Outstanding at the end of the year 705,304,381 417,541,928 (Face Value of Rs.10/- each unit, fully paid up) Outstanding units at the beginning of the year 51,908,285 30,099,381 Add: Units issued during the year 21,544,681 12,728,393 Less: Units redeemed during the year (2,922,527) (1,073,581) Outstanding Units at the end of the year 70,530,439 41,754,193 *Represents capital on the date of commencement of scheme Schedule 2 Reserves and Surplus Unit Premium Reserve Opening Balance 476,029,854 209,687,800 Add: Premium on Units issued 338,027,728 138,259,636 Less: Premium on Units redeemed (45,872,148) (11,113,711) Closing Balance 768,185,434 336,833,725 General Reserve Opening Balance 87,694,803 66,613,144 Add: Transfer from Revenue Account 312,633 20,941,093 Closing Balance 88,007,436 87,554,237 Unrealised Appreciation Account Opening Balance 164,507,627 50,212,768 Add/(Less): Transfer from/(to) Revenue Account 26,552,210 40,902,542 Closing Balance 191,059,837 91,115,310 Total 1,047,252,707 515,503,272 Schedule 3 Current Liabilities and Provisions Current Liabilities Sundry Creditors for expenses 88,346 60,897 Book Overdraft - - Redemption Payable 2,767,118 1,057,945 TDS Payable 1,511 364 Contract for Purchase of Investments - - Amount Payable to Other Schemes - - 2,856,975 1,119,206

Schedule 4 Investments (Long Term and Short Term) Equity Shares - - Debentures and Bonds Listed/Awaiting Listing - - Central and State Government Securities (including treasury bills) - - Commercial Paper - - Others - Mutual Fund Units- Equity oriented Schemes 1,727,414,541 923,408,886 - Liquid Scheme 25,791,281 10,117,964 - Certificates of Deposit - - Total 1,753,205,822 933,526,850 Schedule 5 Deposits Deposits with Scheduled Banks - - - - Schedule 6 Other Current Assets Balances with bank in a current account 2,208,241 637,556 Contracts for sale of investments - - Outstanding and accrued income - - Brokerage receivable from PFM - - Application money pending allotment - - Receivable from other scheme - - 2,208,241 637,556

NPS Trust - A/c Kotak Pension Fund Scheme E Tier I Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half- Year ended March 31, 2018 Schedule 7 Significant Accounting Policies and Notes to the Financial Statements A. Background 1. Kotak Mahindra Pension Fund Ltd., (KMPFL) a Company incorporated under the Companies Act, 1956, and a subsidiary of Kotak Mahindra Asset Management Company Limited (KMAMC) was appointed as a pension Fund Manager (PFM) by the National Pension System Trust (NPS Trust) for the management of Pension Fund and for this purpose it has entered into Investment Management Agreements (IMA) dated April 30, 2009, March 21, 2013 and March 25, 2015. As per unbundled architecture of the NPS Trust, the main responsibility of the PFM is to manage funds in accordance with the laid down guidelines and declare NAV. As per the architecture, NSDL e-governance Infrastructure Ltd. and Karvy Computershare Private Limited (w.e.f. Feb 16, 2017), being the Central Recordkeeping Agencies (CRAs) provides consolidated data to PFM for allotment/redemption of units and Axis Bank Ltd., being the Trustee Bank, provides/ receive funds on consolidated basis in respect of such allotment/ redemption. 2. CRA's responsibilities includes: a. Recordkeeping, Administration and Customer service functions for NPS subscribers, b. Providing Unique Permanent Retirement Account Number (PRAN) to each subscriber, c. Maintaining database of all PRANs issued and recording transactions relating to each subscriber s PRAN, d. PRAN Transaction Statement, e. An operational interface between PFRDA and other NPS intermediaries such as Pension Funds, Annuity Service Providers, Trustee Bank etc. f. CRAs are responsible to resolve all queries pertaining to investors. CRAs inform about the subscription and redemption to Pension Fund Managers (PFM) and also instruct Trustee Bank to credit PFM s pool account maintained with them. 3. NPS Trust has designated Stock Holding Corporation of India Ltd. (SHCIL) as the custodian, who is responsible for safe custody of securities and settlement of trades. Further, SHCIL has also been designated as valuation service provider, who is responsible for providing rates for valuation, which is used by PFM for valuation of investments. 4. The Trustee bank provides subscription funds on a consolidated basis for all the schemes managed by PFM and credits the same to a control account maintained by the PFM, wherefrom the funds are transferred by the PFM to the respective schemes. The PFM record receipt of funds in the respective schemes only. 5. The fees payable to CRAs as per the architecture is charged to the investors by redemption of units as claimed by CRAs. B. Scheme particulars 1. Investment objective: The investment objective of the scheme is to optimise returns. 2. Commencement: The Scheme commenced operations on May 01, 2009. 3. Investment pattern: w.e.f. September 10, 2015 w.e.f. May 08, 2017 a. Index Funds/ Exchange Traded Funds that replicate the portfolio of either BSE Sensex index or NSE Nifty 50 Index. b. Equity shares listed in the BSE/NSE having 5,000 Crores market cap and derivatives with the shares as underlying traded in the either of stock exchanges. c. Exchange traded funds issued by SEBI regulated Mutual Funds constructed a. Shares of body corporates listed on Bombay Stock Exchange or National Stock Exchange which have 1. Market capitalisation not less than 5000 crore as on the date of investment 2. Derivatives with the shares as underlying traded in either of the two stock exchanges except in case of IPO

NPS Trust - A/c Kotak Pension Fund Scheme E Tier I Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half- Year ended March 31, 2018 specifically for disinvestment of shareholding of the Govt. in body corporates. d. Exchange traded derivatives regulated by SEBI. e. Units of Mutual Funds which is having exposure of 65% in Equities listed on BSE or NSE. but the same should be available in the F&O segment in either of two stock exchanges with in one year to remain invested in the stock. b. Units of Mutual fund regulated by Securities and Exchange Board of India, which have minimum 65% of their investment in shares of body corporate listed on BSE or NSE. c. Index Funds/ Exchange Traded Funds regulated by Securities and Exchange Board of India that replicate the portfolio of either BSE Sensex index or NSE Nifty 50 Index. d. ETFs issued by SEBI regulated Mutual Funds constructed specifically for disinvestment of the shareholding of Government of India in Body Corporates. e. Exchange traded derivatives regulated by SEBI having the underlying of any permissible listed stock or any of the permissible indices, with the sole purpose of hedging. Provided the portfolio invested in derivatives in terms of contract value shall not be in excess of 5% of the total portfolio invested in the above categories. 4. Contributions to the Scheme by the investors for retirement are non-withdrawable. C. Significant Accounting Policies 1. Basis of preparation of Financial Statements: The financial statements have been prepared pursuant to the PFRDA (Preparation of Financial Statements and Auditor s Report of the Schemes under National Pension System) Guidelines- 2012. 2. Basis of Accounting: The Scheme maintains books of account on an accrual basis under the historical cost convention, as modified for investments, which are marked-to-market. 3. Investments transactions a. Purchase and Sale of investments are recorded on the date of the transaction. b. Rights/ Bonus entitlements, if any, are accounted on ex-rights/ex-bonus date of the principal stock exchange. c. In determining the holding cost of investments and the gain or loss on sale of investments, the weighted average cost method is followed. d. The cost of Investments acquired excludes transaction charges and brokerage (which is borne by the PFM). 4. Valuation of investments: Investments are valued using the price determined in the following manner: a. Equity: i. Traded: When a security is traded on National Stock Exchange (NSE) on a valuation day, the last quoted closing price at which it was traded on the NSE. When on a valuation day, a security has not been traded on NSE, the value at which it is traded on BSE is used. ii. Non-traded: When a security is not traded on any stock exchange on a particular valuation day, the last quoted closing price at which it was traded on the selected stock exchange, as the case may be, on the earliest previous day may be used provided such date is not more than 30 days prior to valuation date.

NPS Trust - A/c Kotak Pension Fund Scheme E Tier I Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half- Year ended March 31, 2018 iii. Right entitlement: a. Traded: Right entitlement is valued at the closing market price on the valuation date. b. Non-traded: Right entitlement is valued at the difference of the Ex-right price and the offer price multiplied by the ratio of Right Entitlement. b. Mutual fund units: Mutual fund units are valued at the latest available/previous day's NAV from AMFI website. 5. Income Recognition (i) Dividend income is accrued on the ex-dividend date (ii) Profit/Loss on sale of investments is accounted on the date of transaction on which the contract for sale is entered into, except for redemption of investments in Mutual Fund schemes, wherein the profit/loss on sale are recorded on the next business day after receipt of the confirmation. (iii) Appreciation/Depreciation, as the case may be, in the value of the investments at the yearend have been computed for the Scheme, whereby the aggregate market value of all investments taken together is compared with aggregate cost of acquisition. The change in net appreciation/depreciation is recognised in Revenue Account. The change in net appreciation/depreciation, if any, is transferred to/from the Unrealised Appreciation Account shown as part of Reserves and Surplus. 6. Computation of Net Asset Value (NAV): The NAV of the units is determined by dividing the net assets, including investments recognised and valued as per the accounting policies, by the number of outstanding units on the valuation date. 7. Unit Premium Reserve: Difference between the issue/redemption price and face value of units is credited/debited to Unit Premium Reserve. 8. Income Taxes: No Provision for Income tax has been made since the income of the Scheme is exempt under Section 10(44) of the Income tax Act, 1961. D. Investment Management Fees: The Scheme has accrued for investment management fees to PFM for managing the Scheme at the rate of 0.01% p.a. on the average daily net assets managed by PFM as per the IMA signed with NPS Trust, the details of which are as under: Management Fees % p.a. Management Fees ( ) Oct 17 Mar 18 Oct 16 Mar 17 Oct 17 Mar 18 Oct 16 Mar 17 0.01% 0.01% 89,708 35,993 *including GST from 1 st July 2017. E. Trustee Fees: During the year the scheme has accrued Trustee Fee payable to NPS Trust as percentage of Scheme s average daily net assets. The basis of Trustee Fees and aggregate Trustee Fees on average daily net assets is as under: Trustee Fees % p.a. Trustee Fees ( ) Oct 17 Mar 18 Oct 16 Mar 17 Oct 17 Mar 18 Oct 16 Mar 17 0.01% 0.01% 76,025 35,993 F. Aggregate value of purchases and sales: ( in Lakhs) Details Oct 17 Mar 18 Oct 16 Mar 17 Aggregate Value of Purchases 10,390.58 5998.27 % on Daily Average AUM 68.033% 84.43% Aggregate value of Sales 5605.77 3557.66 % on Daily Average AUM 36.70% 50.08%

NPS Trust - A/c Kotak Pension Fund Scheme E Tier I Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half- Year ended March 31, 2018 G. The aggregate value of Non-trades investments (other than Government Securities), where investments have been valued in good faith exceeds 5% of Net Assets as at March 31, 2018 is Nil (Previous Year Nil) H. Net Asset Value: Current Year ( ) Previous Year ( ) As on 31 st March, 2018 As on 31 st March, 2017 24.8482 22.3461 I. Income & Expenditure: The total income and expenditure (excluding mark to market gains/ losses) for the year as a percentage of the scheme s average net assets are as under: Oct 17 Mar 18 Oct 16 Mar 17 Income Expenditure Income Expenditure in Lakhs % in Lakhs % in Lakhs % in Lakhs % 4.78 0.03% 1.65 0.01 230.72 3.25 21.31 0.30 J. Other disclosures: Particulars Oct 17 Mar 18 Contingent liabilities Nil Nil Non performing investments- Carrying value Nil Nil Non performing investments- Market value Nil Nil Brokerage, custodial fees and other charges to entities where PFM or its subsidiaries or its major shareholders have substantial interest. K. Major Industry group within the Asset class Industry Market Value of Investment ( in lakhs) As at As at 31.03.2018 31.03.2017 Nil Oct 16 Mar 17 Nil % of Total Investment in Particular Category As at As at 31.03.2018 31.03.2017 Mutual Fund Investments Units of Mutual Funds Equity Scheme 17274.15 9,234.09 98.53% 98.92% Units of Mutual Funds Liquid Scheme 257.91 101.18 1.47% 1.08% L. Investment in Group Concerns of PFM: Nil (Previous year: NIL)

NPS Trust - A/c Kotak Pension Fund Scheme E Tier I Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half- Year ended March 31, 2018 M. Previous year s figures Previous year s Figures have been re-grouped/ reclassified wherever necessary. Signatures to Schedules 1 to 7 forming part of the Balance Sheet (Unaudited) and Revenue Account (Unaudited). For Kotak Mahindra Pension Fund Ltd. Balan Wasudeo Gaurang Shah Sandeep Shrikhande Chief Executive Officer Date: Date: April 23, 2018 Place: Mumbai Place: Mumbai AN Vinod Fund Manager

Name of the Pension Fund : Kotak Mahindra Pension Fund Name of the Scheme: NPS Trust A/c Kotak Pension Fund Scheme E Tier I Hal- Yearly Portfolio Statement (Unaudited) for the period ended March 31, 2018 Particulars Market Value Rs. % of Portfolio Equity Mutual Fund Birla Sun LIfe Top 100 Direct Plan Growth 168,985,307 9.64% Birla Sunlife Frontline Equity Fund Direct Plan Growth 168,949,223 9.64% Franklin India Blue Chip Fund Direct Plan Growth 167,628,409 9.56% SBI Blue Chip Fund Direct Plan Growth 165,581,742 9.45% ICICI FOCUSED BLUECHIP EQUITY DIR GR 163,099,029 9.31% Birla Sun Life India Gennext Fund Growth Direct Plan 159,421,987 9.10% SBI Magnum Multiplier Fund Direct Plan Growth 158,277,940 9.03% DSP Blackrock Opportunities Fund Direct Plan Growth 158,013,765 9.02% Mirae Asset India Opportunity Fund Direct Growth 150,018,721 8.56% Franklin India Prima Plus Direct Plan Growth 140,876,806 8.04% SBI Magnum Equity Fund Direct Plan Growth 126,561,613 7.22% 1,727,414,541 98.57% Money Market Instruments:- Liquid Funds Reliance Liquid Fund Treasury Plan Direct Plan Growth 25,791,281 1.47% Cash / Cash Equivalent & Net Current Assets (648,734) -0.04% Grand Total 1,752,557,088 100.00% Bank FD - - Equity - - Equity Mutual Funds 1,727,414,541 98.57% Money Market Mutual Funds 25,791,281 1.47% Cash / Cash Equivalent Net Current Assets (648,734) -0.04% Application Pending Allotment - NCDs - Others - Grand Total 1,752,557,088 100.00% Units Outstanding 70530438.088 NAV 24.8482 Note: Total NPAs provided for and its percentage of NAV Nil Total value and Percentage of illiquid equity shares Nil NAV at the beginning of the period 24.0292 at the end of the period 24.8482 Total Outstanding exposure in derivative instruments at the end of the period Nil Total Infrastructure investments Nil www.kotakpensionfund.com

Key Statistics(Unaudited) Name of the Pension Fund Kotak Mahindra Pension Fund Name of the Scheme NPS Trust A/c Kotak Pension Fund Scheme E Tier I Key Statistics for the half year ended(unaudited) March 31, 2018 S.No March 31, 2018 March 31, 2017 1 NAV Per Unit (Rs.)* Open 24.0292 20.8479 High 27.2118 22.3461 Low 24.1754 19.0678 End 24.8482 22.3461 2 Closing Assets Under Management ( Rs. In Lakhs) End 17,525.53 9,330.42 Average (AAUM) 15,272.75 7,104.33 3 Gross income as % of AAUM 0.0559% 3.2500% 4 Expense Ratio a Total Expense as % of AAUM (Scheme wise) 0.0300% 0.3000% b Management Fee as % of AAUM (Scheme Wise) 0.0100% 0.0100% 5 Net Income as a percentage of AAUM 0.0259% 2.9500% 6 Portfolio turnover ratio 0.37 0.50 7 Returns (%)* Compounded Annualised Yield Last one Year 11.20% 22.23% Benchmark 12.09% 20.87% Since Inception 10.79% 10.68% Benchmark 13.36% 14.30% Last 1 Year 11.20% 22.23% Last 3 Years 8.16% 13.44% Last 5 Years 14.19% 14.26% Since Launch of the scheme (May 15, 2009) 10.79% 10.68% *Declared NAV, Returns calculated based on declared NAV

NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER II BALANCE SHEET AS AT March 31, 2018 (UNAUDITED) Schedules Liabilities Unit Capital 1 73,432,415 42,585,080 Reserves and Surplus 2 87,930,039 41,659,956 Current Liabilities and Provisions 3 347,561 1,250,885 Total 161,710,015 85,495,921 Assets Investments 4 161,539,600 84,396,584 Deposits 5 - - Other Current Assets 6 170,415 1,099,337 Total Significant Accounting Policies and Notes to Accounts 7 161,710,015 85,495,921 - - For KOTAK MAHINDRA PENSION FUND LTD Balan Wasudeo Gaurang Shah Sandeep Shrikhande Chief Executive Officer AN Vinod Fund Manager Place: Mumbai Date: April 23, 2018

NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER II REVENUE ACCOUNT FOR THE HALF-YEAR ENDED MARCH 31, 2018 (UNAUDITED) Particulars Half-Year ended Half-Year ended March 31, 2018 March 31, 2017 Income Dividend - - Interest - - Profit on sale/redemption of investments 373,037 2,197,176 Profit on inter-scheme transfer/sale of investments - - Unrealized gain on appreciation in investments 2,610,707 3,816,218 Other income - Miscellaneous Income - - Total 2,983,744 6,013,394 Expenses and Losses Unrealized losses in value of investments - - Loss on sale/redemption of investments - 187,366 Loss on inter-scheme transfer/sale of investments - - Management fees (including service tax / GST) 8,699 3,396 Trustee Fees 7,373 3,396 Custodian fees 640 (511) Depository and settlement charges (17) - CRA Fees 29,629 17,232 Less: Amount recoverable on sale of units on account of CRA Charges (29,629) (17,232) Trustee Bank's fees - - Other Expenses, if any - - Total 16,695 193,647 Surplus/(Deficit) for the year 2,967,049 5,819,747 Add /(Less): Amount transferred from / (to) Unrealised Appreciation Account (2,610,707) (3,816,218) Less: Amount transferred to General Reserve^ (356,342) (2,003,529) Amount carried forward to Balance Sheet - 0.00 ^ known as Revenue Reserve in earlier years Significant Accounting Policies and Notes to Accounts 7 For KOTAK MAHINDRA PENSION FUND LTD Balan Wasudeo Gaurang Shah Sandeep Shrikhande Chief Executive Officer AN Vinod Fund Manager Place: Mumbai Date: April 23, 2018

NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER II NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET (UNAUDITED) AS AT MARCH 31, 2018 Schedule 1 Unit Capital Initial Capital* 481 481 Outstanding at the beginning of the year 57,092,280 30,679,219 Add: Units issued during the period 25,589,464 15,591,944 Less: Units redeemed during the period (9,249,329) (3,686,083) Outstanding at the end of the year 73,432,415 42,585,080 (Face Value of Rs.10/- each unit, fully paid up) Outstanding units at the beginning of the year 5,709,228 3,067,922 Add: Units issued during the year 2,558,946 1,559,194 Less: Units redeemed during the year (924,933) (368,608) Outstanding Units at the end of the year 7,343,241 4,258,508 *Represents capital on the date of commencement of scheme Schedule 2 Reserves and Surplus Unit Premium Reserve Opening Balance 40,658,953 14,830,426 Add: Premium on Units issued 32,472,197 13,087,782 Less: Premium on Units redeemed (11,827,240) (3,167,440) Closing Balance 61,303,910 24,750,768 General Reserve Opening Balance 8,693,046 6,656,477 Add: Transfer from Revenue Account 356,342 2,003,529 Closing Balance 9,049,388 8,660,006 Unrealised Appreciation Account Opening Balance 14,966,034 4,432,964 Add/(Less): Transfer from/(to) Revenue Account 2,610,707 3,816,218 Closing Balance 17,576,741 8,249,182 Total 87,930,039 41,659,956 Schedule 3 Current Liabilities and Provisions Current Liabilities Sundry Creditors for expenses 9,078 5,883 Book Overdraft - - Redemption Payable 338,315 1,244,998 TDS Payable 168 4 Contract for Purchase of Investments - - Amount Payable to Other Schemes - - 347,561 1,250,885

Schedule 4 Investments (Long Term and Short Term) Equity Shares - - Debentures and Bonds Listed/Awaiting Listing - - Central and State Government Securities (including treasury bills) - - Commercial Paper - - Others - Mutual Fund Units- Equity oriented Schemes 159,616,873 83,675,845 - Liquid Scheme 1,922,727 720,739 - Certificates of Deposit - - Total 161,539,600 84,396,584 Schedule 5 Deposits Deposits with Scheduled Banks - - - - Schedule 6 Other Current Assets Balances with bank in a current account 170,415 1,099,182 Contracts for sale of investments - - Outstanding and accrued income - - Brokerage receivable from PFM - - Application money pending allotment - - Receivable from other scheme - - Interest Received in advance - - Sundry Debtors 155 170,415 1,099,337

NPS Trust - A/c Kotak Pension Fund Scheme E Tier II Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half-Year ended March 31, 2018 Schedule 7 Significant Accounting Policies and Notes to the Financial Statements A. Background 1. Kotak Mahindra Pension Fund Ltd., (KMPFL) a Company incorporated under the Companies Act, 1956, and a subsidiary of Kotak Mahindra Asset Management Company Limited (KMAMC) was appointed as a pension Fund Manager (PFM) by the National Pension System Trust (NPS Trust) for the management of Pension Fund and for this purpose it has entered into Investment Management Agreements (IMA) dated April 30, 2009, March 21, 2013 and March 25, 2015. As per unbundled architecture of the NPS Trust, the main responsibility of the PFM is to manage funds in accordance with the laid down guidelines and declare NAV. As per the architecture, NSDL e-governance Infrastructure Ltd. and Karvy Computershare Private Limited (w.e.f. Feb 16,2017), being the Central Recordkeeping Agencies (CRAs) provides consolidated data to PFM for allotment/redemption of units and Axis Bank Ltd., being the Trustee Bank, provides/ receive funds on consolidated basis in respect of such allotment/ redemption. 2. CRA's responsibilities includes: a. Recordkeeping, Administration and Customer service functions for NPS subscribers, b. Providing Unique Permanent Retirement Account Number (PRAN) to each subscriber, c. Maintaining database of all PRANs issued and recording transactions relating to each subscriber s PRAN, d. PRAN Transaction Statement, e. An operational interface between PFRDA and other NPS intermediaries such as Pension Funds, Annuity Service Providers, Trustee Bank etc. f. CRAs are responsible to resolve all queries pertaining to investors. CRAs inform about the subscription and redemption to Pension Fund Managers (PFM) and also instruct Trustee Bank to credit PFM s pool account maintained with them. 3. NPS Trust has designated Stock Holding Corporation of India Ltd. (SHCIL) as the custodian, who is responsible for safe custody of securities and settlement of trades. Further, SHCIL has also been designated as valuation service provider, who is responsible for providing rates for valuation, which is used by PFM for valuation of investments. 4. The Trustee bank provides subscription funds on a consolidated basis for all the schemes managed by PFM and credits the same to a control account maintained by the PFM, wherefrom the funds are transferred by the PFM to the respective schemes. The PFM record receipt of funds in the respective schemes only. 5. The fees payable to CRAs as per the architecture is charged to the investors by redemption of units as claimed by CRAs. B. Scheme particulars 1. Investment objective: The investment objective of the scheme is to optimise returns. 2. Commencement: The Scheme commenced operations on December 01, 2009. 3. Investment pattern: w.e.f. September 10, 2015 w.e.f. May 08, 2017 a. Shares of body corporates listed on Bombay Stock Exchange or National Stock Exchange which have a. Index Funds/ Exchange Traded Funds that replicate the portfolio of either BSE Sensex index or NSE Nifty 50 Index. b. Equity shares listed in the BSE/NSE having 5,000 Crore market cap and derivatives with the shares as underlying traded in the either of stock exchanges. 1. Market capitalisation not less than 5000 crore as on the date of investment

NPS Trust - A/c Kotak Pension Fund Scheme E Tier II Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half-Year ended March 31, 2018 c. Exchange traded funds issued by SEBI regulated Mutual Funds constructed specifically for disinvestment of shareholding of the Govt. in body corporates. d. Exchange traded derivatives regulated by SEBI. e. Units of Mutual Funds which is having exposure of 65% in Equities listed on BSE or NSE. 2. Derivatives with the shares as underlying traded in either of the two stock exchanges except in case of IPO but the same should be available in the F&O segment in either of two stock exchanges with in one year to remain invested in the stock. b. Units of Mutual fund regulated by Securities and Exchange Board of India, which have minimum 65% of their investment in shares of body corporate listed on BSE or NSE. c. Index Funds/ Exchange Traded Funds regulated by Securities and Exchange Board of India that replicate the portfolio of either BSE Sensex index or NSE Nifty 50 Index. d. ETFs issued by SEBI regulated Mutual Funds constructed specifically for disinvestment of the shareholding of Government of India in Body Corporates. e. Exchange traded derivatives regulated by SEBI having the underlying of any permissible listed stock or any of the permissible indices, with the sole purpose of hedging. Provided the portfolio invested in derivatives in terms of contract value shall not be in excess of 5% of the total portfolio invested in the above categories. 4. Contributions to the Scheme by the investors are withdrawable without any lock-in period. C. Significant Accounting Policies 1. Basis of preparation of Financial Statements: The financial statements have been prepared pursuant to the PFRDA (Preparation of Financial Statements and Auditor s Report of the Schemes under National Pension System) Guidelines- 2012. 2. Basis of Accounting: The Scheme maintains books of account on an accrual basis under the historical cost convention, as modified for investments, which are marked-to-market. 3. Investments transactions a. Purchase and Sale of investments are recorded on the date of the transaction,. b. Rights/ Bonus entitlements, if any, are accounted on ex-rights/ex-bonus date of the principal stock exchange. c. In determining the holding cost of investments and the gain or loss on sale of investments, the weighted average cost method is followed. d. The cost of Investments acquired excludes transaction charges and brokerage (which is borne by the PFM). 4. Valuation of investments: Investments are valued using the price determined in the following manner: a. Equity: i. Traded: When a security is traded on National Stock Exchange (NSE) on a valuation day, the last quoted closing price at which it was traded on the NSE. When on a

NPS Trust - A/c Kotak Pension Fund Scheme E Tier II Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half-Year ended March 31, 2018 ii. iii. valuation day, a security has not been traded on NSE, the value at which it is traded on BSE is used. Non-traded: When a security is not traded on any stock exchange on a particular valuation day, the last quoted closing price at which it was traded on the selected stock exchange, as the case may be, on the earliest previous day may be used provided such date is not more than 30 days prior to valuation date. Right entitlement: a. Traded: Right entitlement is valued at the closing market price on the valuation date. b. Non-traded: Right entitlement is valued at the difference of the Ex-right price and the offer price multiplied by the ratio of Right Entitlement. b. Mutual fund units: Mutual fund units are valued at the latest available/previous day's NAV from AMFI website. 5. Income Recognition (i) (ii) (iii) Dividend income is accrued on the ex-dividend date. Profit/Loss on sale of investments is accounted on the date of transaction on which the contract for sale is entered into, except for redemption of investments in Mutual Fund schemes, wherein the profit/loss on sale are recorded on the next business day after receipt of the confirmation. Appreciation/Depreciation, as the case may be, in the value of the investments at the yearend have been computed for the Scheme, whereby the aggregate market value of all investments taken together is compared with aggregate cost of acquisition. The change in net appreciation/depreciation is recognised in Revenue Account. The change in net appreciation/depreciation, if any, is transferred to/from the Unrealised Appreciation account shown as part of Reserves and Surplus. 6. Computation of Net Asset Value (NAV): The NAV of the units is determined by dividing the net assets, including investments recognised and valued as per the accounting policies, by the number of outstanding units on the valuation date. 7. Unit Premium Reserve: Difference between the issue/redemption price and face value of units is credited/debited to Unit Premium Reserve. 8. Income Taxes: No Provision for Income tax has been made since the income of the Scheme is exempt under Section 10(44) of the Income tax Act, 1961. D. Investment Management Fees: The Scheme has accrued for investment management fees to PFM for managing the Scheme at the rate of 0.01% p.a. on the average daily net assets managed by PFM as per the IMA signed with NPS Trust, the details of which are as under: Management Fees % p.a. Management Fees ( ) Oct 17 Mar 18 Oct 16 Mar 17 Oct 17 Mar 18 Oct 16 Mar 17 0.01% 0.01% 8,699 3,396 * including GST w,e,f 01.07.2017

NPS Trust - A/c Kotak Pension Fund Scheme E Tier II Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half-Year ended March 31, 2018 E. Trustee Fees: During the year the scheme has accrued Trustee Fee payable to NPS Trust as percentage of Scheme s average daily net assets. The basis of Trustee Fees and aggregate Trustee Fees on average daily net assets is as under: Trustee Fees % p.a. Trustee Fees ( ) Oct 17 Mar 18 Oct 16 Mar 17 Oct 17 Mar 18 Oct 16 Mar 17 0.01% 0.01% 7373 3,396 F. Aggregate value of purchases and sales: ( in Lakhs) Details Oct 17 Mar 18 Oct 16 Mar 17 Aggregate Value of Purchases 1011.12 605.40 % on Daily Average AUM 68.29% 90.83% Aggregate value of Sales 636.87 385.74 % on Daily Average AUM 43.01% 57.87% G. The aggregate value of Non-trades investments (other than Government Securities), where investments have been valued in good faith exceeds 5% of Net Assets as at March 31, 2018 is Nil (Previous Year: Nil) H. Net Asset Value: Current Year ( ) Previous Year ( ) As on 31 st March, 2018 As on 31 st March, 2017 21.9743 19.7828 I. Income & Expenditure: The total income and expenditure (excluding mark to market gains/ losses) for the year as a percentage of the scheme s average net assets are as under: Oct 17 Mar 18 Oct 16 Mar 17 Income Expenditure Income Expenditure in Lakhs % in Lakhs % in Lakhs % in Lakhs % 3.73 0.25% 0.17 0.01% 21.97 3.30 1.94 0.29 J. Other disclosures Particulars Current Year Contingent liabilities Nil Nil Non performing investments- Carrying value Nil Nil Non performing investments- Market value Nil Nil Brokerage, custodial fees and other charges to entities where PFM or its subsidiaries or its major shareholders have substantial interest. K. Major Industry group within the Asset class Industry Market Value of Investment ( in lakhs) As at 31.03.2018 As at 31.03.2017 Nil Previous year Nil % of Total Investment in Particular Category As at 31.03.2018 As at 31.03.2017 Mutual Fund Investments Units of Mutual Funds- Equity Scheme 1596.17 836.76 98.81% 99.14% Units of Mutual Funds- Liquid Scheme 19.23 7.21 1.19% 0.86%

NPS Trust - A/c Kotak Pension Fund Scheme E Tier II Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half-Year ended March 31, 2018 L. Investment in Group Concerns of PFM: Nil M. Previous year s figures Previous year s Figures have been re-grouped/ reclassified wherever necessary. Signatures to Schedules 1 to 7 forming part of the Balance Sheet (Unaudited) and Revenue Account (Unaudited). For Kotak Mahindra Pension Fund Ltd. Balan Wasudeo Gaurang Shah Sandeep Shrikhande Chief Executive Officer Date: April 23, 2018 Place: Mumbai AN Vinod Fund Manager

Name of the Pension Fund : Kotak Mahindra Pension Fund Name of the Scheme: NPS Trust A/c Kotak Pension Fund Scheme E Tier II Hal- Yearly Portfolio Statement (Unaudited) for the period ended March 31, 2018 Particulars Market Value Rs. % of Portfolio Equity Mutual Fund Birla Sunlife Frontline Equity Fund Direct Plan Growth 15,846,804 9.82% Birla Sun LIfe Top 100 Direct Plan Growth 15,570,670 9.65% Birla Sun Life India Gennext Fund Growth Direct Plan 15,550,486 9.64% Franklin India Blue Chip Fund Direct Plan Growth 15,527,288 9.62% ICICI FOCUSED BLUECHIP EQUITY DIR GR 15,490,922 9.60% SBI Blue Chip Fund Direct Plan Growth 15,105,710 9.36% SBI Magnum Multiplier Fund Direct Plan Growth 14,684,619 9.10% Mirae Asset India Opportunity Fund Direct Growth 14,200,395 8.80% DSP Blackrock Opportunities Fund Direct Plan Growth 14,050,593 8.71% Franklin India Prima Plus Direct Plan Growth 14,034,039 8.70% SBI Magnum Equity Fund Direct Plan Growth 9,555,346 5.92% 159,616,873 98.92% Money Market Instruments:- Liquid Funds Reliance Liquid Fund Treasury Plan Direct Plan Growth 1,922,727 1.19% - Cash / Cash Equivalent & Net Current Assets (177,146) -0.11% Grand Total 161,362,454 100.00% Bank FD - - Equity - - Equity Mutual Funds 159,616,873 98.92% Money Market Mutual Funds 1,922,727 1.19% Cash / Cash Equivalent Net Current Assets (177,146) -0.11% Application Pending Allotment - NCDs - Others - Grand Total 161,362,454 100.00% Units Outstanding 7343241.4792 NAV 21.9743 Note: Total NPAs provided for and its percentage of NAV Nil Total value and Percentage of illiquid equity shares Nil NAV at the beginning of the period 21.2656 at the end of the period 21.9743 Total Outstanding exposure in derivative instruments Nil Total Infrastructure investments Nil www.kotakpensionfund.com

Key Statistics(Unaudited) Name of the Pension Fund Name of the Scheme Kotak Mahindra Pension Fund NPS Trust A/c Kotak Pension Fund Scheme E Tier II Key Statistics for the half year ended(unaudited) March 31, 2018 S.No Particulars March 31, 2018 March 31, 2017 1 NAV Per Unit (Rs.)* Open 21.2656 18.4487 High 24.0716 19.7826 Low 21.3942 16.8822 End 21.9743 19.7828 2 Closing Assets Under Management (Rs. In Lakhs) End 1,613.63 842.44 Average Asset Under Management (AAUM) 1,480.70 666.55 3 Gross income as % of AAUM 0.25% 3.3000% 4 Expense Ratio a Total Expense as % of AAUM (Scheme wise) 0.01% 0.2900% b Management Fee as % of AAUM (Scheme Wise) 0.0100% 0.0100% 5 Net Income as a percentage of AAUM 0.2400% 3.0100% 6 Portfolio turnover ratio 0.43 0.57 7 Returns (%)* Compounded Annualised Yield Last one Year 11.08% 21.94% Benchmark 12.09% 20.87% Since Inception 9.95% 9.80% Benchmark 9.43% 9.07% Compounded annualised Yield (%) Last 1 Year 11.08% 21.94% Last 3 Years 8.12% 13.35% Last 5 Years 14.11% 14.17% Since Launch of the scheme (Dec 14, 2009) 9.95% 9.75% *Declared NAV, Returns calculated based on declared NAV

NPS TRUST - A/C KOTAK PENSION FUND SCHEME C - TIER I BALANCE SHEET AS AT March 31, 2018 (UNAUDITED) Schedules Liabilities Unit Capital 1 491,908,253 291,556,887 Reserves and Surplus 2 720,865,764 383,538,695 Current Liabilities and Provisions 3 2,571,385 744,263 Total 1,215,345,402 675,839,845 Assets Investments 4 1,170,821,100 652,084,087 Deposits 5 - - Other Current Assets 6 44,524,302 23,755,758 Total Significant Accounting Policies and Notes to Accounts 7 1,215,345,402 675,839,845 - - For KOTAK MAHINDRA PENSION FUND LTD Balan Wasudeo Gaurang Shah Sandeep Shrikhande Chief Executive Officer AN Vinod Fund Manager Place: Mumbai Date: April 23, 2018

NPS TRUST - A/C KOTAK PENSION FUND SCHEME C - TIER I REVENUE ACCOUNT FOR THE HALF-YEAR ENDED MARCH 31, 2018 (UNAUDITED) Particulars Half-Year ended Half-Year ended March 31, 2018 March 31, 2017 Income Dividend - - Interest 39,849,825 22,114,135 Profit on sale/redemption of investments 684,536 2,003,409 Profit on inter-scheme transfer/sale of investments - - Unrealized gain on appreciation in investments - - Other income - Miscellaneous Income - - Total 40,534,361 24,117,544 Expenses and Losses Unrealized losses in value of investments 20,817,910 5,545,044 Loss on sale/redemption of investments 828,399 - Loss on inter-scheme transfer/sale of investments - - Management fees (including service tax / GST) 59,366 28,335 Trustee Fees 50,310 28,335 Custodian fees 22,544 7,860 CRA Fees 688,648 171,713 Less: Amount recoverable on sale of units on account of CRA Charges (688,648) (171,713) Trustee Bank's fees - - Depository and settlement charges (760) - Other Expenses, if any - - Total 21,777,769 5,609,574 Surplus/(Deficit) for the year 18,756,592 18,507,970 Add /(Less): Amount transferred from / (to) Unrealised Appreciation Account 20,817,910 5,545,044 Less: Amount transferred to General Reserve^ (39,574,502) (24,053,014) Amount carried forward to Balance Sheet - - ^ known as Revenue Reserve in earlier years Significant Accounting Policies and Notes to Accounts 7 For KOTAK MAHINDRA PENSION FUND LTD Balan Wasudeo Gaurang Shah Sandeep Shrikhande Chief Executive Officer AN Vinod Fund Manager Place: Mumbai Date: April 23, 2018

NPS TRUST - A/C KOTAK PENSION FUND SCHEME C - TIER I NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET (UNAUDITED) AS AT MARCH 31, 2018 Schedule 1 Unit Capital Initial Capital* 150 150 Outstanding at the beginning of the year 363,057,754 221,012,283 Add: Units issued during the period 145,078,488 78,276,102 Less: Units redeemed during the period (16,227,989) (7,731,498) Outstanding at the end of the year 491,908,253 291,556,887 (Face Value of Rs.10/- each unit, fully paid up) Outstanding units at the beginning of the year 36,305,775 22,101,228 Add: Units issued during the year 14,507,849 7,827,610 Less: Units redeemed during the year (1,622,798) (773,150) Outstanding Units at the end of the year 49,190,826 29,155,689 *Represents capital on the date of commencement of scheme Schedule 2 Reserves and Surplus Unit Premium Reserve Opening Balance 371,063,963 181,145,044 Add: Premium on Units issued 207,082,539 101,247,625 Less: Premium on Units redeemed (23,173,518) (9,964,641) Closing Balance 554,972,984 272,428,028 General Reserve Opening Balance 122,588,005 67,636,522 Add: Transfer from Revenue Account 39,574,502 24,053,014 Closing Balance 162,162,507 91,689,536 Unrealised Appreciation Account Opening Balance 24,548,183 24,966,175 Add/(Less): Transfer from/(to) Revenue Account (20,817,910) (5,545,044) Closing Balance 3,730,273 19,421,131 Total 720,865,764 383,538,695 Schedule 3 Current Liabilities and Provisions Current Liabilities Sundry Creditors for expenses 70,671 48,882 Book Overdraft - - Redemption Payable 2,499,303 694,604 TDS Payable 1,411 777 Contract for Purchase of Investments - - Amount Payable to Other Schemes - - 2,571,385 744,263

Schedule 4 Investments (Long Term and Short Term) Equity Shares - - Debentures and Bonds Listed/Awaiting Listing 1,146,025,382 635,289,877 Central and State Government Securities (including treasury bills) - - Commercial Paper - - Others - Mutual Fund Units 24,795,718 16,794,210 - Certificates of Deposit - - Total 1,170,821,100 652,084,087 Schedule 5 Deposits Deposits with Scheduled Banks - - - - Schedule 6 Other Current Assets Balances with bank in a current account 2,528,575 923,224 Contracts for sale of investments - - Outstanding and accrued income 41,995,727 22,832,534 Brokerage receivable from PFM - - Application money pending allotment - - Receivable from other scheme - - 44,524,302 23,755,758

NPS Trust - A/c Kotak Pension Fund Scheme C Tier I Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half-Year ended March 31, 2018 Schedule 7 Significant Accounting Policies and Notes to the Financial Statements A. Background 1. Kotak Mahindra Pension Fund Ltd., (KMPFL) a Company incorporated under the Companies Act, 1956, and a subsidiary of Kotak Mahindra Asset Management Company Limited (KMAMC) was appointed as a pension Fund Manager (PFM) by the National Pension System Trust (NPS Trust) for the management of Pension Fund and for this purpose it has entered into Investment Management Agreements (IMA) dated April 30, 2009, March 21, 2013 and March 25, 2015. As per unbundled architecture of the NPS Trust, the main responsibility of the PFM is to manage funds in accordance with the laid down guidelines and declare NAV. As per the architecture, NSDL e-governance Infrastructure Ltd. and Karvy Computershare Private Limited (w.e.f. Feb 16,2017), being the Central Recordkeeping Agencies (CRAs) provides consolidated data to PFM for allotment/redemption of units and Axis Bank Ltd., being the Trustee Bank, provides/ receive funds on consolidated basis in respect of such allotment/ redemption. 2. CRA's responsibilities includes: a. Recordkeeping, Administration and Customer service functions for NPS subscribers, b. Providing Unique Permanent Retirement Account Number (PRAN) to each subscriber, c. Maintaining database of all PRANs issued and recording transactions relating to each subscriber s PRAN, d. PRAN Transaction Statement, e. An operational interface between PFRDA and other NPS intermediaries such as Pension Funds, Annuity Service Providers, Trustee Bank etc. f. CRAs are responsible to resolve all queries pertaining to investors. CRAs inform about the subscription and redemption to Pension Fund Managers (PFM) and also instruct Trustee Bank to credit PFM s pool account maintained with them. 3. NPS Trust has designated Stock Holding Corporation of India Ltd. (SHCIL) as the custodian, who is responsible for safe custody of securities and settlement of trades. Further, SHCIL has also been designated as valuation service provider, who is responsible for providing rates for valuation, which is used by PFM for valuation of investments. 4. The Trustee bank provides subscription funds on a consolidated basis for all the schemes managed by PFM and credits the same to a control account maintained by the PFM, wherefrom the funds are transferred by the PFM to the respective schemes. The PFM record receipt of funds in the respective schemes only. 5. The fees payable to CRAs as per the architecture is charged to the investors by redemption of units as claimed by CRAs. B. Scheme particulars 1. Investment objective: The investment objective of the scheme is to optimise returns. 2. Commencement: The Scheme commenced operations on May 01, 2009. 3. Investment pattern: w.e.f. September 10, 2015 w.e.f. May 08, 2017 Listed debt securities issued by Listed (or proposed to be listed in case body corporates including Banks of fresh issue) debt securities issued and PFI which having minimum by bodies corporate, including banks residual period of 3 years from the and public financial institutions (public date of investment. financial institutions as defined under section 2 of the Companies Act, 2013) which have minimum residual maturity period of three years from the date of

NPS Trust - A/c Kotak Pension Fund Scheme C Tier I Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half-Year ended March 31, 2018 Term Deposits of scheduled commercial banks, of not less than 1 year duration, having Net worth of at least 200 Crores and 3 years profitability, CRAR of not less than 9% in last 3 years and Net NPA under 4%. Units of Debt Mutual Funds as regulated by SEBI. Listed Credit Rated Municipal Bonds/ Infrastructure Bonds/ Rated assets backed securities Credit Rated Public Financials Institutions/ PSU Bonds. Basel III Tier 1 bonds issued by scheduled commercial banks under RBI guidelines. investment. Term Deposit receipts of not less than one year duration issued by scheduled commercial banks, having declared profit immediately preceding three financial years, maintaining a minimum capital to Risk Weighted Asset Ratio of 9%, or mandated by prevailing RBI norms which is higher, having net NPA not more than 4% of the net assets and having minimum net worth of not less than Rs. 200 crore. Units of Debt Mutual Funds as regulated by SEBI. Listed and proposed to be listed credit rated Municipal Bonds which are fulfilling certain criteria. Infrastructure related debt instruments which fulfilling select criteria. Rupee Bonds having an outstanding maturity of atleast 3 years issued by International Bank of Reconstruction and Development, International Finance Corporation and Asian Development Bank. 4. Contributions to the Scheme by the investors for retirement are non-withdrawable. C. Significant Accounting Policies 1. Basis of preparation of Financial Statements: The financial statements have been prepared pursuant to the PFRDA (Preparation of Financial Statements and Auditor s Report of the Schemes under National Pension System) Guidelines- 2012. 2. Basis of Accounting: The Scheme maintains books of account on an accrual basis under the historical cost convention, as modified for investments, which are marked-to-market. 3. Investments transactions a. Purchase and Sale of investments are recorded on the date of the transaction. b. Rights/ Bonus entitlements, if any, are accounted on ex-rights/ex-bonus date of the principal stock exchange. c. In determining the holding cost of investments and the gain or loss on sale of investments, the weighted average cost method is followed. d. The cost of Investments acquired excludes transaction charges and brokerage (which is borne by the PFM). 4. Valuation of investments: Investments are valued using the price determined in the following manner: a. Debentures, corporate bonds, commercial papers and certificate of deposits: i. Traded securities are valued at NSE / BSE weighted average traded price on that day. ii. Securities not traded on a valuation day with residual maturity over 60 days are valued on a yield to maturity basis, which is arrived at by adding spreads of relevant tenor, rating and industry over the benchmark yield. iii. The spread used are average of spreads provided by CRISIL and ICRA.

NPS Trust - A/c Kotak Pension Fund Scheme C Tier I Schedules forming part of the Balance Sheet (Unaudited) as at March 31, 2018 and the Revenue Account (Unaudited) for the Half-Year ended March 31, 2018 iv. Securities not traded on a valuation day with residual maturity up to 60 days are valued at last traded price plus the difference between the redemption value and last traded price, spread uniformly over the remaining maturity period of the instrument. v. Securities purchased by way of private placement are valued at cost for a period of vi. fifteen days beginning from the date of purchase. Only Callable Bonds (single/multiple call options), which are callable by the issuer, are valued at lowest value on each call option date. vii. Only Puttable Bonds (single/multiple put options), which are puttable by the investor, are valued at highest value on each put option date. viii. Securities with both Put and Call option (single/multiple) on the same day is deemed to mature on the Put/Call option day and is valued accordingly. ix. Partly paid bonds are valued at cost till it is fully paid. x. Perpetual bond with single/multiple call options are valued at lowest price on each option date. b. Mutual fund units: Mutual fund units are valued at the latest available/previous day's NAV from AMFI website. 5. Income Recognition (i) (ii) (iii) Interest on interest bearing and other fixed income investments is recognised on a day to day basis as it is earned. On purchase of such investments, interest paid for the period from the last interest due date up to the date of purchase is not treated as a cost of purchase but is treated as interest recoverable. Similarly, interest received at the time of sale for the period from the last interest due date up to the date of sale is not treated as part of sale value but is treated as interest recovered. Profit/Loss on sale of investments is accounted on the date of transaction on which the contract for sale is entered into. except for redemption of investments in Mutual Fund schemes, wherein the profit/loss on sale are recorded on the next business day after receipt of the confirmation. Appreciation/Depreciation, as the case may be, in the value of the investments at the year-end have been computed for the Scheme, whereby the aggregate market value of all investments taken together is compared with aggregate cost of acquisition. The change in net appreciation/depreciation is recognised in Revenue Account. The change in net appreciation/depreciation, if any, is transferred to/from the Unrealised Appreciation Account shown as part of Reserves and Surplus. 6. Computation of Net Asset Value (NAV): The NAV of the units is determined by dividing the net assets, including investments recognised and valued as per the accounting policies, by the number of outstanding units on the valuation date. 7. Unit Premium Reserve: Difference between the issue/redemption price and face value of units is credited/debited to Unit Premium Reserve. 8. Income Taxes: No Provision for Income tax has been made since the income of the Scheme is exempt under Section 10(44) of the Income tax Act, 1961.