ICICI PRUDENTIAL PENSION FUNDS
MANAGEMENT COMPANY LIMITED
SCHEME E TIER I
SCHEME C TIER I
SCHEME G TIER I
SCHEME E TIER II
SCHEME C TIER II
SCHEME G TIER II
ANNUAL REPORT 2014-2015
2
CONTENTS
1. BACKGROUND
a) THE TRUST ............................................................................................... 3
b) SPONSOR ................................................................................................. 3
c) PENSION FUND MANAGEMENT COMPANY ............................................ 4
d) INVESTMENT STRUCTURE OF THE COMPANY ........................................ 4
2. BASIS AND POLICY OF INVESTMENTS ...................................................... 4
3. ECONOMIC SCENARIO ................................................................................ 5
4. INVESTMENT OBJECTIVE OF THE SCHEME ................................................ 6
5. SCHEME PERFORMANCE AND OPERATIONS ............................................. 7
6. LIABILITIES AND RESPONSIBILITIES OF THE COMPANY ......................... 10
7. FINANCIAL STATEMENTS OF THE SCHEMES………………………….…………11
a) Scheme E Tier I - Equity market instruments
b) Scheme C Tier I - Credit risk bearing fixed income instruments
c) Scheme G Tier I - Government securities
d) Scheme E Tier II - Equity market instruments
e) Scheme C Tier II - Credit risk bearing fixed income instruments
f) Scheme G Tier II - Government securities
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To the Subscribers,
ICICI Prudential Pension Funds Management Company Limited (‘the Company’) presents
annual report along with the audited financial statements of the Schemes for the year
ended March 31, 2015.
During the year ending March 31, 2015, the Company managed the following 6 schemes
under the National Pension System (NPS):
Tier I Scheme E - Equity market instruments
Tier I Scheme C - Credit risk bearing fixed income instruments
Tier I Scheme G - Government securities
Tier II Scheme E - Equity market instruments
Tier II Scheme C - Credit risk bearing fixed income instruments
Tier II Scheme G - Government securities
1. BACKGROUND OF THE TRUST, SPONSORS AND PENSION FUND
MANAGEMENT COMPANY
a) THE TRUST
Interim Pension Fund Regulatory and Development Authority (‘PFRDA’) was established
by the Government of India on August 23, 2003 to promote old age income security by
establishing, developing and regulating pension funds, to protect the interests of
subscribers to schemes of pension funds. The Pension Fund Regulatory & Development
Authority Act was passed on September 19, 2013 which was notified on February 01,
2014 thereby according statutory powers to PFRDA.
The National Pension System Trust (‘NPS Trust’) was established by PFRDA on February
27, 2008. The NPS Trust has been constituted for taking care of the assets and funds
under the National Pension System (NPS) in the interest of the beneficiaries
(subscribers).
b) SPONSOR
The Company is sponsored by ICICI Prudential Life Insurance Company Limited
(`Sponsor’) and it is also a wholly owned subsidiary of the Sponsor.
ICICI Prudential Life Insurance Company Limited, a joint venture between ICICI Bank
Limited and Prudential Corporation Holdings Limited, was incorporated on July 20, 2000.
It is licensed by the Insurance Regulatory and Development Authority (`IRDA’) for
carrying out life insurance business in India.
The Sponsor reaches its customers through 547 offices in 480 locations as at March 31,
2015. At March 31, 2015, the Sponsor had 10,863 employees and 132,463 advisors to
cater to the needs of its customers. Assets under management of the Sponsor grew from
` 805.97 billion at March 31, 2014 to ` 1,001.83 billion at March 31, 2015. The Sponsor
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reported a profit after tax of ` 16.34 billion in FY2015 as against profit after tax of ` 15.67
billion in FY2014.
c) PENSION FUND MANAGEMENT COMPANY
The Company was incorporated on April 22, 2009 and received certificate to commence
business on April 28, 2009. The Company is appointed as a Pension Fund Manager
(‘PFM’) by the NPS Trust for the management of pension Schemes for private sector.
The Company has recorded a growth of 108.7% in Assets Under Management (AUM) of
the Schemes for the financial year ending March 31, 2015. The AUM at March 31, 2015
was ` 3,690.0 million up from ` 1,768.2 million at March 31, 2014.
d) INVESTMENT STRUCTURE OF THE COMPANY
The Company has a multi-tiered investment structure to achieve adequate segregation
between control and execution.
The Board of Directors of the Company approves the Investment Policy and Risk
Management Policy, reviews investments and oversees the risk management.
The Investment Committee (Committee) of the Board is responsible for implementation
of Investment Policy, building investment strategy, monitoring investment decisions and
returns.
The Investment team, headed by Chief Executive Officer and Chief Investment Officer, is
responsible for market tracking, investment decisions and deal negotiation & conclusion.
The Investment team is also responsible for research, portfolio management and trading.
An independent Investment Operations team looks after settlement, investment
compliance, valuation, accounting, net asset value (‘NAV’) calculation and statutory and
management reporting. The activities of the Investment Operations team are clearly
segregated as Accounting and NAV computation, Treasury and Mid Office.
An external Custodian, appointed by PFRDA, is responsible for custody of the assets,
tracking corporate actions and also valuation of securities.
Daily investment activities including NAV computation is subject to concurrent audit
carried out by an independent audit firm.
2. BASIS AND POLICY OF INVESTMENTS
Investment Strategy
The overall investment strategy is focused on ensuring adequate returns to subscribers
consistent with protection, safety and liquidity of funds while complying with the
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applicable investment guidelines as prescribed under IMA. The investment strategy is
guided by principles of prudent portfolio management and risk management.
Pursuant to the investment guidelines issued by PFRDA Scheme E is an index fund
replicating NSE Nifty 50 index. The investment philosophy of the scheme can be
summarized as close replication of the underlying index so as to achieve returns as close
to the index as possible with low tracking error.
The objective of fixed income fund management is to meet return expectations of
subscribers through investment in high credit fixed income securities, managing interest
rate risk, credit risk and liquidity risk.
The funds under the Scheme C (Credit risk bearing fixed income instruments) are
invested in fixed deposits, corporate bonds and liquid instruments following the scheme
objective and investment universe as defined by PFRDA. Investments in corporate bonds
are made in high quality long term debt following internal due diligence and credit rating
from independent credit rating agencies.
The funds under the Scheme G (Government securities) are invested in long term central
and state government securities as per the scheme objective. The scheme is managed
actively based on interest rate view backed by extensive research and analysis.
3. ECONOMIC SCENARIO
Equity review - FY2015
Indian equity market (Nifty) gained 27% in FY2015 primarily due to the strong and
favorable electoral mandate and expectations on the reforms agenda. The market
sentiments were also aided by benign global commodity prices and falling crude prices
during the FY2015. While most of the Nifty gains were front ended (H1 FY2015), the
equity market gained in the H2 FY2015 as Japan and Eurozone implemented the
Quantitative Easing programme; which led to further inflows in the domestic markets, in
addition to two surprise repo rate cuts by RBI on softening of CPI inflation and
improvement in the quality of fiscal deficit. The foreign capital inflows into Indian equities
were ~US$ 18 billion during FY2015 as against the capital outflows of ~US$ 4 billion by
domestic institutional investors in the same period.
Debt review - FY2015
The yield on 10 year benchmark government security declined significantly from 8.80%
on March 31, 2014 to 7.74% on March 31, 2015. The strong and favorable electoral
mandate in the general elections and expectations on the reforms agenda saw the bond
market cheer and pick up in volumes. The US Federal Reserve ended their Quantitative
Easing programme which was partially offset by the quantitative easing by the Bank of
Japan and European Central Bank. The new Government presented its first full year
Union Budget for FY2016 maintaining the government’s ongoing push toward supply
side reforms and boosting infrastructure spending, while slightly relaxing the deficit
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reduction plan. RBI cut the repo rate twice by 0.25% each in January and March on the
back of softening of inflation. As a matter of fact CPI inflation softened to 5.2% in March
2015 vs 8.3% in March 2014 primarily due to lower manufacturing, food and fuel
inflation. RBI also signed a memorandum with the central government setting out flexible
inflation target for guiding the monetary policy.
Outlook
Equity Outlook
The long term equity market outlook remains positive due to the inherent attractiveness
of the Indian markets; however it is expected to be range bound in the short term. This is
attributed to subdued earnings growth as the improving macro situation is yet to reflect
in the corporate earnings, primary issuances by both government as well as private
sector and impact of global liquidity. Nifty valuations at 17x consensus 12 month forward
earnings remains higher than historical average of 14.5x. However, we also believe that
the combination of benign global commodity prices, improving GDP growth, falling
interest rates and corporate tax rates along with stable currency are expected to result in
higher corporate earnings followed by similar returns from equities in the long term.
Debt Outlook
The outlook for Indian debt market is neutral over short term. Owing to RBI’s forward
guidance on rates and the overhang of the new borrowing calendar commencing in
April, yields are expected to remain under pressure. RBI is expected to cut rates later in
the year provided food and core inflation continue to remain benign. Markets will watch
out for cues on action by US Fed. Possibility of Greece exit from Eurozone can be a
source of volatility for markets.
4. INVESTMENT OBJECTIVE OF THE SCHEME
The investment objective of the Scheme(s) managed by ICICI Prudential Pension Funds
Management Company Limited is prescribed in or based on investment guidelines
issued by PFRDA. The schemes seek to provide capital appreciation while maintaining
suitable balance between return, safety and liquidity.
Sr. No. Name of the Scheme Investment Objective
1 Scheme E Tier I To optimise returns while investing in the NSE
Nifty 50 Index.
2 Scheme C Tier I To optimise returns and provide accumulation of
income through investment in fixed deposits,
corporate bonds and liquid instruments.
3 Scheme G Tier I To optimise returns and provide accumulation of
income through investment primarily in
government securities (issued by GoI and various
state governments).
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Sr. No. Name of the Scheme Investment Objective
4 Scheme E Tier II To optimise returns while investing in the NSE
Nifty 50 Index.
5 Scheme C Tier II To optimise returns and provide accumulation of
income through investment in fixed deposits,
corporate bonds and liquid instruments.
6 Scheme G Tier II To optimise returns and provide accumulation of
income through investment primarily in
government securities (issued by GoI and various
state governments).
5. SCHEME PERFORMANCE AND OPERATIONS
Scheme E Tier I - Equity market instruments
The performance of the scheme is benchmarked against the total return (dividends
reinvested) of the NSE Nifty 50 Index.
The performance of Scheme E Tier I at March 31, 2015 is presented below:
Period Returns (%)1
Benchmark Returns (%)2
Last 1 year 28.7% 28.3%
Last 3 years 19.3% 18.5%
Since inception3
13.9% 13.5%
1. Past performance may or may not be sustained in the future, returns are compounded
annualised (CAGR)
2. Benchmark index: NSE Nifty 50 Index (dividends reinvested)
3. Date of Inception: May 18, 2009
The Scheme returns have outperformed the benchmark returns over 1 year, 3 years and
since inception.
The Scheme was actively managing its investments which comprised underlying stocks
that constitute NSE Nifty 50 Index from March 20, 2013 to January 29, 2014. The scheme
now replicates NSE Nifty 50 index, in compliance with the revised investment guidelines
issued by PFRDA vide its circular no. PFRDA/2014/02/PFM/1 dated January 29, 2014.
The net assets of the Scheme at March 31, 2015 stood at ` 1,315.6 million as against `
635.9 million at March 31, 2014, a growth of 106.9%.
At March 31, 2015, 99.9% of the net assets were invested in equity shares and the
balance in liquid mutual funds, cash/cash equivalent & net current assets.
Scheme C Tier I - Credit risk bearing fixed income instruments
The Scheme invests only in high quality corporate bonds above investment grade, (75%
of the bonds are AAA rated).
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The performance of Scheme C Tier I at March 31, 2015 is presented below:
Period Returns (%)1
Benchmark Returns (%)2
Last 1 year 15.7% 15.1%
Last 3 years 12.0% 10.5%
Since inception3
11.4% 9.0%
1. Past performance may or may not be sustained in the future, returns are compounded
annualised (CAGR)
2. Benchmark index: Crisil AAA Combex
3. Date of Inception: May 18, 2009
The Scheme returns have outperformed the benchmark returns over 1 year, 3 years and
since inception. The returns continue to be healthy since inception of the scheme.
The net assets of the Scheme at March 31, 2015 stood at ` 931.9 million as against `
446.3 million at March 31, 2014, a growth of 109%.
At March 31, 2015, 94.5% of the net assets were invested in bonds and non-convertible
debentures, 2.2% in liquid mutual funds and balance in cash/cash equivalent & net
current assets.
Scheme G Tier I - Government securities
The performance of Scheme G Tier I at March 31, 2015 is presented below:
Period Returns (%)1
Benchmark Returns (%)2
Last 1 year 20.8% 15.7%
Last 3 years 11.7% 10.3%
Since inception3
9.1% 7.6%
1. Past performance may or may not be sustained in the future, returns are compounded
annualised (CAGR)
2. Benchmark index: ISec Gilt Composite Index
3. Date of Inception: May 18, 2009
The Scheme returns have outperformed the benchmark returns over 1 year, 3 years and
since inception. The returns continue to be healthy since inception of the scheme.
The net assets of the Scheme at March 31, 2015, stood at ` 1,058.3 million as against `
471.3 million at March 31, 2014, a growth of 125%.
At March 31, 2015, 95.0% of the net assets were invested in central government
securities, 3.3% in liquid mutual funds and balance in cash/cash equivalent & net current
assets.
Scheme E Tier II - Equity market instruments
The performance of the scheme is measured by reference to the total performance
(dividends reinvested) of the NSE Nifty 50 Index.
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The performance of Scheme E Tier II at March 31, 2015 is presented below:
Period Returns (%)1
Benchmark Returns (%)2
Last 1 year 28.7% 28.3%
Last 3 years 19.6% 18.5%
Since inception3
10.6% 11.0%
1. Past performance may or may not be sustained in the future, returns are compounded
annualised (CAGR)
2 .Benchmark index: NSE Nifty 50 Index (dividends reinvested)
3 .Date of Inception: January 11, 2010
The Scheme returns have outperformed the benchmark returns over 1 year, 3 years and
underperformed since inception.
The Scheme was actively managing its investments which comprised of underlying
stocks that constitute NSE Nifty 50 Index from March 20, 2013 to January 29, 2014. The
Scheme now replicates NSE Nifty 50 index, in compliance with the revised investment
guidelines issued by PFRDA vide its circular no. PFRDA/2014/02/PFM/1 dated January 29,
2014.
The net assets of the Scheme at March 31, 2014 stood at ` 141.3 million as against ` 73.9
million at March 31, 2013, a growth of 91.2%.
At March 31, 2015, 99.9% of the net assets were invested in equity shares and liquid
mutual funds and balance in cash/cash equivalent & net current assets.
Scheme C Tier II - Credit risk bearing fixed income instruments
The Scheme invests only in corporate bonds above investment grade, (75% of the
bonds are AAA rated).
The performance of Scheme C Tier II at March 31, 2015 is presented below:
Period Returns (%)1
Benchmark Returns (%)2
Last 1 year 15.9% 15.1%
Last 3 years 11.8% 10.5%
Since inception3
11.5% 9.3%
1. Past performance may or may not be sustained in the future, returns are compounded
annualised (CAGR)
2. Benchmark index: Crisil AAA Combex
3. Date of Inception: January 12, 2010
The Scheme outperformed the benchmark returns over 1 year, 3 years and since
inception. The returns continue to be healthy since inception of the scheme.
The net assets of the Scheme at March 31, 2015 stood at ` 138.5 million as against ` 85.9
million at March 31, 2014, a growth of over 61.2%.
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At March 31, 2015, 95.2% of the net assets were invested in bonds / non-convertible
debentures, 1.6% in liquid mutual funds and balance in cash/cash equivalent & net
current assets.
Scheme G Tier II - Government securities
The performance of Scheme G Tier II at March 31, 2015 is presented below:
Period Returns (%)1
Benchmark Returns (%)2
Last 1 year 20.7% 15.7%
Last 3 years 11.7% 10.3%
Since inception3
9.5% 8.8%
1. Past performance may or may not be sustained in the future, returns are compounded
annualised (CAGR)
2, Benchmark index: ISec Gilt Composite Index
3. Date of Inception: February 8, 2010
The Scheme returns have outperformed the benchmark returns over 1 year, 3 years and
underperformed since inception.
The net assets of the Scheme at March 31, 2015 stood at ` 104.4 million as against ` 55.0
million at March 31, 2014, a growth of over 89.8%
At March 31, 2015, 96.8% of the net assets were invested in central government
securities, 1.2% in liquid mutual funds and balance in cash/cash equivalent & net current
assets.
Disclaimer:
Since the Schemes permit investments in shares, bonds, debentures and other scripts or
securities whose value can fluctuate, the price and redemption value of the units of the
Schemes and income from them can go up as well as come down with the fluctuations
in the market value of these underlying investments.
6. LIABILITIES AND RESPONSIBILITIES OF THE COMPANY
The Company has been appointed by PFRDA as a fund manager for management of
investments of the Schemes and, in that capacity, makes investment decisions and
manages the Scheme in accordance with the Investment Guidelines, Scheme Objectives,
IMA and provisions of the PFRDA guidelines /directions. The transactions entered into by
the Company are in accordance with the PFRDA Guidelines, IMA and the code of ethics
prescribed by the Trustees.
The Company has exercised necessary due diligence and vigilance in carrying out its
duties of Investment management and in protecting the rights and interests of the
subscribers. Investment decisions have been taken with emphasis on safety and
optimum returns. The Company has not dealt in any speculative transactions in dealing
for investments. The Company will be responsible for the acts of omissions or
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commissions of its employees or the persons whose services have been procured by the
Company.
7. FINANCIAL STATEMENTS OF THE SCHEMES
a) Scheme E Tier I - Equity market instruments
b) Scheme C Tier I - Credit risk bearing fixed income instruments
c) Scheme G Tier I - Government securities
d) Scheme E Tier II - Equity market instruments
e) Scheme C Tier II - Credit risk bearing fixed income instruments
f) Scheme G Tier II - Government securities
ICICI Prudential Pension Funds Management
Company Limited - Scheme E Tier I
Financial Statements together with Auditor’s Report for
the year ended March 31, 2015
ICICI Prudential Pension Funds Management
Company Limited - Scheme E Tier I
Financial Statements together with Auditor’s
Report
For the year ended March 31, 2015
Contents
Auditor’s Report
Balance Sheet
Revenue Account
Accounting Policies and Notes to Accounts
INDEPENDENT AUDITORS' REPORT To, The Trustees, National Pension System Trust Report on Financial Statements 1 We have audited the accompanying financial statements of NPS Trust A/c ICICI Prudential Pension
Funds Management Company Limited, Scheme E - Tier I (Scheme) under the National Pension System Trust (NPS Trust) managed by ICICI Prudential Pension Funds Management Company Limited (‘PFM’ or the ‘Company) which comprise of the Balance Sheet as at March 31, 2015, and the Revenue Account for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements 2 Management of the PFM, in accordance with the Pension Fund Regulatory and Development
Authority (PFRDA) Guidelines and the Investment Management Agreement (IMA) with the NPS Trust, is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Scheme in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act 2013 (the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial statements are also approved by the NPS Trust on the recommendation of the Board of Directors of the PFM.
Auditor’s Responsibility 3 4
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
5 An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the PFM’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.
6 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements. Opinion 7 In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required by PFRDA (Preparation of Financial Statements and Auditors Report of Schemes under National Pension System) Guidelines 2012 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a)
in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2015; and
(b)
in the case of the Revenue Account, of the surplus of the Scheme for the year ended on that date;
Report on Other Legal And Regulatory Requirements 8 As required by the PFRDA (Preparation of Financial Statements and Auditors Report of Schemes
under National Pension System) Guidelines 2012, as amended, and section 143(3) of the Act we report that:
a) We have obtained all information and explanations which to the best of our knowledge and belief
were necessary for the purpose of the audit. b) The Balance Sheet and Revenue account of the Scheme are in agreement with the books of account
of the Scheme. c) In our opinion proper books of account of the Scheme, as required by the PFRDA has been
maintained by the PFM as far as appears from our examination of those books. d) All transactions expenses in excess of the limits contractually agreed to / approved by the Authority
are borne by the Pension Fund (if any) and are not charged to the NAV of the Scheme. e) In our opinion the Balance Sheet and Revenue Account of the Scheme dealt with by this report
comply with the “PFRDA (Preparation of Financial Statements and Auditor’s Report of Scheme under National Pension System) Guidelines-2012” and the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
9 We further certify that
a) Investments have been valued in accordance with the guidelines issued by the Authority. b) Transaction and claims/fee raised by different entities are in accordance with the prescribed fee. For Borkar & Muzumdar
Chartered Accountants Firm Registration No. 101569W B M Agarwal Partner M No.: 33254 Place: Mumbai Date: 24th April, 2015
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME E TIER I
BALANCE SHEET AT MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Sources of funds
Unit capital 1 612,337,645 380,286,731
Reserves and surplus 2 703,281,936 255,622,595
Current liabilities and provisions 3 15,764,263 20,023,815
Borrowings - -
Total 1,331,383,844 655,933,141
Application of funds
Investments (long term and short term) 4 1,328,238,265 637,631,809
Deposits 5 - -
Other current assets 6 3,145,579 18,301,332
Total 1,331,383,844 655,933,141
(a) Net assets as per Balance Sheet (Schedule 4+5+6 -3) 1,315,619,581 635,909,327
(b) Number of units outstanding 61,233,764 38,028,673
(c) NAV per unit (a)/(b) (`) (Refer note 2.8 (II)) 21.4852 16.7218
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ScheduleParticularsScheme E Tier I
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME E TIER I
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Income from investments
Interest income 1,850 -
Dividend income 13,149,902 5,816,351
Net profit/(loss) on sale/redemption of investments (other than inter-
scheme transfer/sale) 3,235,003 10,424,611
Net profit/(loss) on inter-scheme transfer/sale of investments - -
Unrealised gain on appreciation in investments 223,521,562 76,013,010
Total income (A) 239,908,317 92,253,972
Expenses and losses
Unrealised losses in value of investments 28,876,700 2,050,801
Provision for outstanding accrued income considered doubtful - -
Provision for doubtful deposits and current assets - -
Management fees (including service tax) [Refer Note 2.4] 790,603 1,099,126
Trusteeship/regulatory fees - -
Publicity expenses - -
Audit fees - -
Custodian fees 81,826 32,733
Trustee bank fees - 154
CRA fees 2,471,767 1,741,938
Less : Amount recovered on sale of units on account of CRA
charges (2,471,767) (1,741,938)
Total expenditure (B) 29,749,129 3,182,814
Net income/(expenditure) for the year (A-B) appropriated
to Balance Sheet 210,159,188 89,071,158
Balance at the beginning of the year 101,462,558 12,391,400
Balance at the end of the year carried to Balance Sheet 311,621,746 101,462,558
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached.
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ParticularsScheme E Tier I
Schedule
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME E TIER I
Schedules forming part of the financial statements
Schedule 1: Unit capital (In `)
March 31, 2015 March 31, 2014
Initial capital - -
Unit capital
Opening balance 380,286,731 171,428,318
Additions during the year 264,605,904 222,227,492
Deduction during the year (32,554,990) (13,369,079)
Closing balance 612,337,645 380,286,731
Number of units of face value ` 10 61,233,764 38,028,673
Schedule 2: Reserves and surplus (In `)
March 31, 2015 March 31, 2014
Unit premium reserve
Opening balance 154,160,037 52,426,406
Additions during the year 270,162,765 108,136,890
Deduction during the year (32,662,612) (6,403,259)
Closing balance 391,660,190 154,160,037
Surplus/(deficit) in Revenue account
Opening balance 101,462,558 12,391,400
Additions during the year 210,159,188 89,071,158
Deduction during the year - -
Closing balance 311,621,746 101,462,558
General reserve* - -
Appropriation account* - -
Total 703,281,936 255,622,595
* The balances have been nil throughout the year
Schedule 3: Current liabilities and provisions (In `)
March 31, 2015 March 31, 2014
Current liabilities
Sundry creditors 56,601 354,836
Contracts for purchase of investments 14,497,052 19,452,941
Interest received in advance 1,322 -
Unclaimed distributed income - -
Pending creation of units - -
Unit redemption payable 1,209,288 216,038
Provisions - -
Total 15,764,263 20,023,815
Scheme E Tier I
Scheme E Tier I
Scheme E Tier IParticulars
Particulars
Particulars
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME E TIER I
Schedules forming part of the financial statements
Schedule 4: Investments (In `)
March 31, 2015 March 31, 2014
Equity shares 1,315,205,075 631,790,071
Preference shares - -
Debentures and bonds - -
Central and state government securities (including treasury bills ) - -
Commercial Paper - -
Others - Mutual funds 13,033,190 5,841,738
Total 1,328,238,265 637,631,809
Schedule 5: Deposits (In `)
March 31, 2015 March 31, 2014
Deposits with scheduled banks - -
Others - -
Total - -
Schedule 6: Other current assets (In `)
March 31, 2015 March 31, 2014
Balances with banks in current/saving account 317,719 7,932
Cash on hand - -
Sundry debtors - -
Contracts for sale of investments 2,722,993 17,880,457
Outstanding and accrued income - -
Advance, deposits etc. - -
Shares/debentures/ others application money pending allotment - -
Others - Dividend receivable 104,867 412,943
Total 3,145,579 18,301,332
Particulars
Particulars
Particulars
Scheme E Tier I
Scheme E Tier I
Scheme E Tier I
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Schedule 7
Significant accounting policies and notes to accounts for the year ended
March 31, 2015
1.1 Background
ICICI Prudential Pension Funds Management Company Limited (‘the Company’) is
appointed as a Pension Fund Manager (‘PFM’) by the National Pension System Trust
(‘NPS’). The Company has entered into an Investment Management Agreement (‘IMA’)
with NPS. The Pension Fund Regulatory and Development Authority (‘PFRDA’)
guidelines require each PFM to manage subscribers’ funds made available to it by the
Trustee bank along with the data made available by the Central Recordkeeping Agency
(‘CRA’) at a consolidated level. The Company makes investments as per the IMA, various
other circulars/guidelines issued by the PFRDA in this context from time to time and the
scheme wise flow of funds.
The Company manages six separate schemes under the two tiered structure (Tier I and II)
prescribed under the NPS. The schemes are classified as Scheme E, C and G based on
the underlying asset class prescribed under the NPS as follows:
Scheme E – Equity market instruments
Scheme C – Credit risk bearing fixed income instruments
Scheme G – Government securities
1.2 Basis of preparation
The financial statements have been prepared in accordance with the PFRDA (Preparation
of financial statements and Auditor’s report of Schemes under National Pension System)
Guidelines – 2012 (‘Guidelines’), Accounting Standards (‘AS’) notified under section 133
of the Companies Act, 2013, read together with paragraph 7 of the Companies
(Accounts) Rules 2014 to the extent made applicable by the Guidelines and generally
accepted accounting principles. The Guidelines specifically exempt the schemes from the
applicability of AS 3 (Cash Flow Statement) and AS 17 (Segmental Reporting). These
financial statements have been prepared on an accrual basis, except as otherwise stated.
The financials have been prepared for Scheme E Tier I being managed by the Company.
1.3 Investments
Purchase and sale of securities are accounted on trade date. Investments are reconciled
with the custodian records on daily basis. The holding cost of investments is determined
by the weighted average cost method and the cost does not include brokerage and other
transaction charges.
Valuation of Investments
All investments are marked to market and are carried in the Balance Sheet at the market
value as on Balance Sheet date/date of determination/date of valuation. Unrealised
gain/(loss), if any, is transferred to Revenue account.
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
As per directive received from NPS, the valuation of investments is carried out by Stock
Holding Corporation of India Limited (SHCIL). The Investment valuation methodology
adopted by SHCIL is as follows:
Listed equity shares are valued at market value, being the last quoted closing price on
the National stock exchange (NSE). If they are not quoted on NSE, then the last quoted
closing price on the Bombay stock exchange (BSE) is taken.
Non traded rights are valued at the difference of closing market price of the original
equity share for the day and the offer price. Traded rights are valued at the closing
market price of the rights renunciation till the time of application. In the event of
application of rights, the rights entitlement would be valued at the closing market price of
the original equity share till the date of allotment/listing.
Mutual fund units are valued based on the net asset values of the preceding day of the
valuation date.
Income earned on Investments
Dividend income and non-convertible debenture received in lieu of dividend is
recognised on the `ex-dividend date’. Bonus shares to which the scheme becomes
entitled are recognized only when the original shares on which the bonus entitlement
accrues are traded on the stock exchange on an ex-bonus basis. Similarly, rights
entitlements are recognized only when the original shares on which the right entitlement
accrues are traded on the stock exchange on an ex-rights basis.
Profit or loss on sale of equity shares/mutual fund units is the difference between the sale
consideration net of expenses, if any and the weighted average book cost.
1.4 Units reconciliation
The subscribers’ units as per Investment management system are reconciled with Central
Recordkeeping Agency (CRA) records on daily basis.
1.5 Investment management fees
Investment management fees are recognised on daily accrual basis on closing Asset
under management (AUM) in accordance with IMA. The Investment management fee is
inclusive of brokerage but excludes custodian charges and applicable taxes, if any.
1.6 Other expenses
Custody charges are recognised on daily accrual basis in accordance with IMA. Trustee
bank charges were recognised when they were debited by the trustee bank on a
quarterly basis. The trustee bank has discontinued levying charges with effect from July
01, 2013.
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Notes to accounts
2.1 Contingent liabilities
(In `)
Particulars At March 31,
2015
At March 31,
2014
Uncalled liability on partly paid shares Nil Nil
Other commitments Nil Nil
2.2 Investments
All investments are performing investments. All investments of the scheme are in the
name of the NPS Trust. All investments are traded investments.
2.3 Details of transactions with sponsor and its related parties
Related parties and nature of relationship.
Nature of relationship Name of the related party
Pension fund manager ICICI Prudential Pension Funds Management
Company Limited
Sponsor company ICICI Prudential Life Insurance Company Limited
Associates and group
companies
- Holding company of
sponsor
ICICI Bank Limited
The following represents significant transactions between the Scheme and its related
parties.
(In `)
Name of
related party
Nature of
transaction
Transactions for the
year ended
Amount recoverable/
(payable)
March 31,
2015
March 31,
2014
At March
31, 2015
At March
31, 2014
ICICI Prudential
Pension Funds
Management
Company
Limited
Investment
management
fees
790,603 1,099,126 (31,280) (332,101)
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Aggregate investments made by the scheme in the associates and group companies are
as follows:
(In `)
Period Name of the
Company
Asset
type Cost
Market
value
At March 31,
2015 ICICI Bank Limited Equity 63,103,805 81,670,330
At March 31,
2014 ICICI Bank Limited Equity 32,908,819 40,715,625
2.4 Investment management fees
The Investment Management Fees is charged on closing funds under management on
daily basis for all the schemes. In terms of the PFRDA’s letter no. PFRDA/6/PFM/9/2 dated
July 31, 2014, the Company has started charging investment management fee of 0.01%
per annum, with effect from August 01, 2014. The investment management fee charged
upto July 31, 2014 was 0.25% per annum.
2.5 Aggregate value of purchase and sale with percentage to average daily
net assets
Aggregate value of purchase and sale with percentage to average daily net assets is as
follows:
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 2,917,220,717 144,7383,627
% to average net assets 299.2% 369.9%
Aggregate value of purchase and sale (excluding liquid mutual fund)* with percentage to
average daily net assets is as follows:
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 565,023,406 616,739,008
% to average net assets 58.0% 157.6%
*liquid mutual fund investments are held for day to day cash management, hence excluded.
2.6 Investments falling under each major industry group
The total value of investments falling under each major industry group (which constitutes
not less than 5% of the total investments in the major classification of the financials) are
disclosed as under:
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Investment
classification
At March 31, 2015 At March 31, 2014
Market value
(In `)
% of
investment
class
Market
value (In `)
% of
investment
class
Equity 1,315,205,075 100.0% 631,790,071 100.0%
Monetary
intermediation of
commercial banks,
saving banks
315,618,830 24.0% 131,155,939 20.8%
Writing, modifying,
testing of computer
program to meet the
needs
216,515,378 16.5% 101,481,127 16.1%
Activities of specialized
institutions granting
credit for house
purchases that also take
deposits
92,435,819 7.0% 38,935,795 6.1%
Manufacture of
allopathic
pharmaceutical
preparations
91,865,397 7.0% 33,544,444 5.3%
Manufacture of
cigarettes, cigarette
tobacco
81,322,059 6.2% 54,224,929 8.6%
Manufacture of refined
petroleum products 60,799,382 4.6% 4,032,1021 6.3%
Others 456,648,210 34.7% 232,126,816 36.8%
Mutual Funds 13,033,190 100.0% 5,841,738 100.0%
Net current assets (12,618,684) 100.0% (1,722,482) 100.0%
Net asset value 1,315,619,581 100.0% 635,909,327 100.0%
2.7 Statement of portfolio holding as on March 31, 2015
Security name Units Acquisition
cost (In `) Market value
(In `)
Equity 1,036,688,745 1,315,205,075
Infosys Limited 44,589 74,273,690 98,914,008
Housing Development Finance
Corporation Limited 70,256 63,045,879 92,435,819
HDFC Bank Limited 86,758 64,093,357 88,727,407
ICICI Bank Limited 258,860 63,103,805 81,670,330
ITC Limited 249,569 79,908,054 81,322,059
Larsen & Toubro Limited 36,525 43,641,847 62,810,216
Reliance Industries Limited 73,607 65,713,894 60,799,382
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Security name Units Acquisition
cost (In `) Market value
(In `)
Tata Consultancy Services Limited 22,838 46,299,917 58,327,110
Tata Motors Limited 80,273 30,969,830 44,166,205
Axis Bank Limited 75,863 24,598,631 42,498,453
State Bank Of India 138,071 27,940,501 36,871,861
Sun Pharmaceuticals Industries Limited 33,626 19,811,138 34,429,661
Hindustan Unilever Limited 31,648 19,420,429 27,646,110
Kotak Mahindra Bank Limited 19,208 16,354,923 25,224,906
Oil & Natural Gas Corporation Limited 80,142 25,618,228 24,551,502
Mahindra & Mahindra Limited 20,600 20,744,243 24,468,680
Bharti Airtel Limited 61,827 21,276,836 24,316,559
HCL Technologies Limited 24,214 14,472,462 23,739,406
Maruti Suzuki India Limited 5,909 12,136,636 21,847,641
Lupin Limited 10,706 10,868,037 21,501,930
Coal India Limited 57,411 19,563,733 20,834,452
Dr. Reddys Laboratories Limited 5,671 14,313,878 19,784,701
Wipro Limited 29,335 15,505,114 18,447,315
IndusInd Bank Limited 19,309 10,168,705 17,107,774
Tech Mahindra Limited 27,136 14,034,550 17,087,539
Asian Paints Limited 20,226 10,944,629 16,409,354
Cipla Limited 22,667 10,180,189 16,149,104
Power Grid Corporation Of India Limited 98,390 11,239,292 14,291,148
Hero Motocorp Limited 5,359 12,073,125 14,146,688
NTPC Limited 92,230 13,398,939 13,543,976
Ultratech Cement Limited 4,573 9,725,704 13,160,637
Bajaj Auto Limited 5,994 11,993,084 12,087,500
Yes Bank Limited 14,535 11,821,433 11,856,926
Grasim Industries Limited 2,842 8,503,482 10,294,719
IDFC Limited 59,425 7,587,245 9,921,004
Bharat Heavy Electricals Limited 40,385 9,130,162 9,504,610
Tata Steel Limited 29,779 11,474,309 9,432,498
Bharat Petroleum Corporation Limited 11,543 5,364,869 9,359,064
Sesa Sterlite Limited 49,163 10,094,772 9,316,389
Idea Cellular Limited 50,012 8,871,313 9,202,208
Ambuja Cements Limited 34,368 6,611,454 8,774,150
Zee Entertainment Enterprises Limited 24,423 7,813,164 8,346,560
GAIL (India) Limited 20,764 7,951,973 8,052,279
Hindalco Industries Limited 57,470 7,668,506 7,413,630
Bank of Baroda 41,952 6,444,979 6,859,152
ACC Limited 4,178 5,363,087 6,529,170
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Security name Units Acquisition
cost (In `) Market value
(In `)
Tata Power Company Limited 80,893 6,476,582 6,236,850
Cairn India Limited 25,370 7,791,596 5,425,375
Punjab National Bank 33,255 5,333,581 4,802,022
NMDC Limited 35,410 4,952,962 4,559,038
Mutual Funds 13,031,713 13,033,190
IDFC Cash fund – Direct Plan - Growth 7,669 13,031,713 13,033,190
Total 1,049,720,458 1,328,238,265
Statement of portfolio holding as on March 31, 2014
Security name Units Acquisition
cost (In `) Market
value (In `)
Equity 547,918,864 631,790,071
ITC Limited 153,677 45,597,168 54,224,929
Infosys Limited 13,747 40,967,668 45,128,652
ICICI Bank Limited 32,702 32,908,819 40,715,625
Reliance Industries Limited 43,321 36,633,866 40,321,021
HDFC Bank Limited 52,542 32,210,467 39,343,450
Housing Development Finance Corporation 44,050 33,868,099 38,935,795
Larsen & Toubro Limited 23,041 21,970,751 29,305,848
Tata Consultancy Services Limited 13,207 22,706,722 28,172,512
Tata Motors Limited 51,452 16,302,783 20,511,340
State Bank Of India 8,723 14,102,273 16,728,097
ONGC Corporation Limited 49,942 14,316,642 15,916,515
Axis Bank Limited 8,805 10,491,491 12,859,703
Mahindra & Mahindra Limited 13,017 11,251,793 12,765,772
Sun Pharma Limited 21,526 9,751,757 12,372,069
Hindustan Unilever Limited 19,887 10,414,394 12,042,573
Bharti Airtel Limited 33,739 10,891,753 10,720,567
HCL Technologies Limited 7,619 7,028,609 10,595,743
Wipro Limited 18,447 9,201,867 10,020,410
Dr. Reddy Laboratories 3,636 8,050,747 9,322,340
Kotak Mahindra Bank Limited 10,803 7,172,706 8,437,683
Bajaj Auto Limited 3,788 6,979,996 7,892,677
Hero Motocorp Limited 3,386 6,693,782 7,702,473
Tech Mahindra Limited 4,213 7,728,508 7,563,810
Tata Steel Limited 18,890 6,548,070 7,441,716
Maruti Suzuki India Limited 3,755 5,560,737 7,403,921
Asian Paints Limited 12,782 5,752,847 7,003,897
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Security name Units Acquisition
cost (In `) Market
value (In `)
NTPC Limited 58,130 8,565,848 6,969,787
Sesa Sterlite Limited 35,330 6,603,957 6,661,472
Power Grid Corporation Of India Limited 62,173 6,280,975 6,528,165
Lupin Limited 6,786 5,468,503 6,332,356
Ultratech Cement Limited 2,868 5,195,660 6,272,173
Indusind Bank 12,061 5,088,346 6,052,813
United Spirits Limited 2,211 5,913,330 5,853,512
Cairn India Limited 16,717 5,316,950 5,566,761
Cipla Limited 14,414 5,457,148 5,517,679
Grasim Industries Limited 1,820 4,950,906 5,256,251
Coal India Limited 17,953 4,758,884 5,183,929
Hindalco Industries Limited 36,487 4,409,812 5,172,032
GAIL (India) Limited 12,678 4,504,354 4,767,562
Tata Power Limited 51,589 3,979,293 4,392,803
Bharat Heavy Electricals Limited 22,299 4,788,681 4,371,719
Ambuja Cements Limited 21,608 3,686,454 4,369,138
Infrastructure Development Finance
Limited 35,417 3,980,613 4,329,728
Bank of Baroda 5,404 3,566,775 3,894,933
Associated Cement Companies Limited 2,629 3,067,157 3,679,417
Bharat Petroleum Corp Limited 7,294 2,571,250 3,355,605
Punjab National Bank 4,199 3,038,096 3,123,636
NMDC Limited 22,427 2,930,966 3,122,960
Jindal Steel & Power Limited 10,419 3,821,972 3,047,037
DLF Limited 12,678 2,360,337 2,237,033
Idea Cellular Limited 15,496 2,508,282 2,129,925
Tata Power Limited - Rights Issue 6,064 - 152,510
Mutual Funds 5,840,000 5,841,738
IDFC Cash fund – Direct Plan - Growth 5,840,000 5,841,738
Total 553,758,864 637,631,809
2.8 Key statistics
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
1. NAV per unit (`)I
(based on published NAV)
Open 16.7001 13.7814
High 22.7271 16.7001
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Low 16.5854 12.9707
End
21.4852 16.7001
2. Closing Assets Under Management (` in Lakhs)
End 13,156.20 6,359.09
Average daily net assets (AAUM)II
9,750.19 3,912.86
3. Gross income as % of AAUMIII
1.68% 4.15%
4. Expense ratio
a. Total expense as % of AAUM (scheme wise)IV
0.0895% 0.2893%
b. Management fee as % of AAUM (scheme wise) 0.0811% 0.2809%
5. Net income as % of AAUMV
1.59% 3.86%
6. Portfolio turnover ratioVI
4.07% 38.76%
7. Total dividend per unit distributed during the period - -
8. Returns: (%)
a. Last one year 28.65% 21.18%
Benchmark 28.33% 19.33%
b. Since inception 114.85% 67.00%
Benchmark 110.36% 63.92%
c. Compound annualised yield (%)VII
Last 1 year 28.39% 21.18%
Last 3 year 19.33% 6.84%
Last 5 year 11.89% NA
Since launch of the scheme 13.91% 11.12%
Launch Date May 18, 2009
I. NAV = (Market value of investment held by scheme + value of current assets - value of
current liability and provisions, if any)/(no. of units at the valuation date (before
creation/redemption of units)
The last published NAV in FY 2014 was on March 28, 2014 of ₹ 16.7001 since it was the
last business day of the financial year. However, since equity markets were operational
on March 31, 2014, it was directed by NPS trust to value its investments on prices of
March 31, 2014 to reflect the correct AUM as on Balance Sheet date. Accordingly, the
NAV computed on March 31, 2014 was ₹ 16.7218. Since March 31, 2014 was a non
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
business day, no transactions were conducted by the subscribers and the NAV
computed for March 31, 2014 was for disclosure purpose only.
II. AAUM = Average daily net assets
III. Gross income = Income includes Interest income, Dividend income and Net
profit/(loss) on sale of investments
IV. Total expenses = Expenses include management fees, custody fees, trustee bank
charges but excludes unrealised loss
V. Net income = Gross income less Total expenses (excludes unrealised gain/loss)
VI. Portfolio turnover = Lower of sales or purchase divided by the average AUM for the
period. Investment in liquid mutual fund is excluded from the turnover as the same is
primarily for liquidity management.
VII. Compounded annualised yield is to be calculated based on following formula:
=((1+ cumulative return)^n) -1 (where n=365/no. of days)
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier I
2.9 Previous year comparatives
Previous year amounts have been regrouped and reclassified wherever necessary to
conform to current year’s presentation in line with the PFRDA (Preparation of financial
statements and Auditor’s report of Schemes under National Pension System) Guidelines
- 2012.
For Borkar & Muzumdar
Chartered Accountants
Firm Registration No. 101569W
For and on behalf of the Board of Directors
of ICICI Prudential Pension Funds
Management Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Meghana Baji Vishal Mehta
Chief Executive Officer Company Secretary
Date : April 24, 2015
Place : Mumbai
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ICICI Prudential Pension Funds Management
Company Limited - Scheme C Tier I
Financial Statements together with Auditor’s Report for
the year ended March 31, 2015
ICICI Prudential Pension Funds Management
Company Limited - Scheme C Tier I
Financial Statements together with Auditor’s
Report
For the year ended March 31, 2015
Contents
Auditor’s Report
Balance Sheet
Revenue Account
Accounting Policies and Notes to Accounts
INDEPENDENT AUDITORS' REPORT To, The Trustees, National Pension System Trust Report on Financial Statements 1 We have audited the accompanying financial statements of NPS Trust A/c ICICI Prudential Pension
Funds Management Company Limited, Scheme C - Tier I (Scheme) under the National Pension System Trust (NPS Trust) managed by ICICI Prudential Pension Funds Management Company Limited (‘PFM’ or the ‘Company) which comprise of the Balance Sheet as at March 31, 2015, and the Revenue Account for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements 2 Management of the PFM, in accordance with the Pension Fund Regulatory and Development
Authority (PFRDA) Guidelines and the Investment Management Agreement (IMA) with the NPS Trust, is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Scheme in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act 2013 (the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial statements are also approved by the NPS Trust on the recommendation of the Board of Directors of the PFM.
Auditor’s Responsibility 3 4
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
5 An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the PFM’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.
6 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements. Opinion 7 In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required by PFRDA (Preparation of Financial Statements and Auditors Report of Schemes under National Pension System) Guidelines 2012 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a)
in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2015; and
(b)
in the case of the Revenue Account, of the surplus of the Scheme for the year ended on that date;
Report on Other Legal And Regulatory Requirements 8 As required by the PFRDA (Preparation of Financial Statements and Auditors Report of Schemes
under National Pension System) Guidelines 2012, as amended, and section 143(3) of the Act we report that:
a) We have obtained all information and explanations which to the best of our knowledge and belief
were necessary for the purpose of the audit. b) The Balance Sheet and Revenue account of the Scheme are in agreement with the books of account
of the Scheme. c) In our opinion proper books of account of the Scheme, as required by the PFRDA has been
maintained by the PFM as far as appears from our examination of those books. d) All transactions expenses in excess of the limits contractually agreed to / approved by the Authority
are borne by the Pension Fund (if any) and are not charged to the NAV of the Scheme. e) In our opinion the Balance Sheet and Revenue Account of the Scheme dealt with by this report
comply with the “PFRDA (Preparation of Financial Statements and Auditor’s Report of Scheme under National Pension System) Guidelines-2012” and the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
9 We further certify that
a) Investments have been valued in accordance with the guidelines issued by the Authority. b) Transaction and claims/fee raised by different entities are in accordance with the prescribed fee. For Borkar & Muzumdar
Chartered Accountants Firm Registration No. 101569W B M Agarwal Partner M No.: 33254 Place: Mumbai Date: 24th April, 2015
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME C TIER I
BALANCE SHEET AT MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Sources of funds
Unit capital 1 494,759,247 274,005,934
Reserves and surplus 2 437,119,066 172,313,169
Current liabilities and provisions 3 727,970 265,033
Borrowings - -
Total 932,606,283 446,584,136
Application of funds
Investments (long term and short term) 4 901,010,207 429,432,581
Deposits 5 - 193,600
Other current assets 6 31,596,076 16,957,955
Total 932,606,283 446,584,136
(a) Net asset as per Balance Sheet (Schedule 4+5+6 -3) 931,878,313 446,319,103
(b) Number of units outstanding 49,475,925 27,400,593
(c) NAV per unit (a)/(b) (`) (Refer note 2.8 (II)) 18.8350 16.2887
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ScheduleParticularsScheme C Tier I
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME C TIER I
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Income from investments
Interest income 56,478,521 25,550,744
Dividend income - -
Net profit/(loss) on sale/redemption of investments (other than
inter-scheme transfer/sale) 5,031,560 1,216,620
Net profit/(loss) on inter-scheme transfer/sale of investments (13,909) (14,596)
Unrealised gain on appreciation in investments 37,677,051 2,297,025
Total income (A) 99,173,223 29,049,793
Expenses and losses
Unrealised losses in value of investments 2,830,108 8,936,632
Provision for outstanding accrued income considered doubtful - -
Provision for doubtful deposits and current assets - -
Management fees (including service tax) [Refer Note 2.4] 533,084 812,262
Trusteeship/regulatory fees - -
Publicity expenses - -
Audit fees - -
Custodian fees 49,931 22,319
Trustee bank fees - 119
CRA fees 1,600,592 1,161,457
Less : Amount recovered on sale of units on account of CRA
charges (1,600,592) (1,161,457)
Total expenditure (B) 3,413,123 9,771,332
Net income/(expenditure) for the year (A-B) appropriated
to Balance Sheet
95,760,100 19,278,461
Balance at the beginning of the year 39,794,322 20,515,861
Balance at the end of the year carried to Balance Sheet
135,554,422 39,794,322
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached.
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ParticularsScheme C Tier I
Schedule
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME C TIER I
Schedules forming part of the financial statements
Schedule 1: Unit capital (In `)
March 31, 2015 March 31, 2014
Initial capital - -
Unit capital
Opening balance 274,005,934 119,007,511
Additions during the year 230,745,188 163,335,465
Deduction during the year (9,991,875) (8,337,042)
Closing balance 494,759,247 274,005,934
Number of units of face value ` 10 49,475,925 27,400,593
Schedule 2: Reserves and surplus (In `)
March 31, 2015 March 31, 2014
Unit premium reserve
Opening balance 132,518,847 42,960,655
Additions during the year 176,769,645 94,325,610
Deduction during the year (7,723,848) (4,767,418)
Closing balance 301,564,644 132,518,847
Surplus/(deficit) in Revenue account
Opening balance 39,794,322 20,515,861
Additions during the year 95,760,100 19,278,461
Deduction during the year - -
Closing balance 135,554,422 39,794,322
General reserve* - -
Appropriation account* - -
Total 437,119,066 172,313,169
* The balances have been nil throughout the year
Schedule 3: Current liabilities and provisions (In `)
March 31, 2015 March 31, 2014
Current liabilities
Sundry creditors 36,916 256,750
Contracts for purchase of investments - -
Interest received in advance - -
Unclaimed distributed income - -
Pending creation of units - -
Unit redemption payable 691,054 8,283
Provisions - -
Total 727,970 265,033
Scheme C Tier I
Scheme C Tier I
Scheme C Tier I
Particulars
Particulars
Particulars
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME C TIER I
Schedules forming part of the financial statements
Schedule 4: Investments (In `)
March 31, 2015 March 31, 2014
Equity shares - -
Preference shares - -
Debentures and bonds 880,339,037 423,340,769
Central and state government securities (including treasury bills) - -
Commercial Paper - -
Others - Mutual funds 20,671,170 6,091,812
Total 901,010,207 429,432,581
Schedule 5: Deposits (In `)
March 31, 2015 March 31, 2014
Deposits with scheduled banks - 193,600
Others - -
Total - 193,600
Schedule 6: Other current assets (In `)
March 31, 2015 March 31, 2014
Balances with banks in current/saving account 2,626,325 1,303,561
Cash on hand - -
Sundry debtors - -
Contracts for sale of investments - -
Outstanding and accrued income 28,969,751 15,654,394
Advance, deposits etc. - -
Shares/debentures/others application money pending allotment - -
Others - Dividend receivable - -
Total 31,596,076 16,957,955
Particulars
Scheme C Tier IParticulars
Scheme C Tier I
ParticularsScheme C Tier I
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
Schedule 7
Significant accounting policies and notes to accounts for the year ended March
31, 2015
1.1 Background
ICICI Prudential Pension Funds Management Company Limited (‘the Company’) is appointed
as a Pension Fund Manager (‘PFM’) by the National Pension System Trust (‘NPS’). The
Company has entered into an Investment Management Agreement (‘IMA’) with NPS. The
Pension Fund Regulatory and Development Authority (‘PFRDA’) guidelines require each
PFM to manage subscribers’ funds made available to it by the Trustee bank along with the
data made available by the Central Recordkeeping Agency (‘CRA’) at a consolidated level.
The Company makes investments as per the IMA, various other circulars/guidelines issued
by the PFRDA in this context from time to time and the scheme wise flow of funds.
The Company manages six separate schemes under the two tiered structure (Tier I and II)
prescribed under the NPS. The schemes are classified as Scheme E, C and G based on the
underlying asset class prescribed under the NPS as follows:
Scheme E – Equity market instruments
Scheme C – Credit risk bearing fixed income instruments
Scheme G – Government securities
1.2 Basis of preparation
The financial statements have been prepared in accordance with the PFRDA (Preparation of
financial statements and Auditor’s report of Schemes under National Pension System)
Guidelines – 2012 (‘Guidelines’), Accounting Standards (‘AS’) notified under section 133 of
the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts)
Rules 2014 to the extent made applicable by the Guidelines and generally accepted
accounting principles. The Guidelines specifically exempt the schemes from the
applicability of AS 3 (Cash Flow Statement) and AS 17 (Segmental Reporting). These
financial statements have been prepared on an accrual basis, except as otherwise stated.
The financials have been prepared for Scheme C Tier I being managed by the Company.
1.3 Investments
Purchase and sale of securities are accounted on trade date. Investments are reconciled
with the custodian records on daily basis. The holding cost of investments is determined by
the weighted average cost method and the cost does not include brokerage and other
transaction charges.
Valuation of investments
All investments are marked to market and are carried in the Balance Sheet at the market
value as on Balance Sheet date/date of determination/date of valuation. Unrealised
gain/(loss), if any, is transferred to Revenue account.
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
As per directive received from NPS, the valuation of investments is carried out by Stock
Holding Corporation of India Limited (SHCIL). The Investment valuation methodology
adopted by SHCIL is as follows:
Debt securities other than Government securities with a residual maturity over 60 days are
valued at weighted average traded price on that day. When such securities are not traded
on a particular day, they are valued on a yield to maturity basis, by using spreads over risk
free benchmark yield obtained from agency(ies) entrusted for the said purpose by
Association of Mutual Funds in India (AMFI) to arrive at the yield for pricing the security.
Debt securities other than Government securities with a residual maturity upto 60 days are
valued at weighted average traded price on that day. When such securities are not traded
on a day, they are valued at last valuation price plus the difference between the redemption
value and last valuation price, spread uniformly over the remaining maturity period of the
instrument. In case of floating rate securities with floor and caps on coupon rate and
residual maturity of upto 60 days then those shall be valued on amortisation basis taking the
coupon rate as floor.
Mutual fund units are valued based on the net asset values of the preceding day of the
valuation date.
Income earned on investments
Interest income on investments is recognised on daily accrual basis. In respect of
investments purchased, interest paid for the period from the last interest due date upto the
date of purchase is debited to interest recoverable account and not included in cost of
purchase. Similarly interest received at the time of sale for the period from the last interest
due date upto the date of sale is credited to interest recoverable account and not included
in sale value. Accretion of discount/amortization of premium relating to debt securities is
recognised over the holding/maturity period on a straight-line basis.
Profit or loss on sale of debt securities is the difference between the sale consideration net
of expenses, if any and the weighted average amortised cost as on the date of sale.
Profit or loss on sale of mutual fund units is the difference between the sale consideration
net of expenses, if any and the weighted average book cost.
Non-performing assets (NPA)
An investment is regarded as NPA, if interest/principal or both amount has not been
received or has remained outstanding for one quarter from the day such income/installment
has fallen due. Further the Company also classifies following assets as impaired.
1. In case of investments, securities where the certificates, if any, are not traceable for a
protracted period
2. In case of assets, other than investments, where in the opinion of the Board of Directors,
there is a substantial dimunition in value.
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
Where income receivable on investments has accrued but has not been received for one
quarter beyond the due date, provision shall be made by debiting to the Revenue account
for the income so accrued and no further accrual of income shall be made in respect of
such investments.
Income on NPAs shall be recognised on cash basis.
1.4 Units reconciliation
The subscribers’ units as per Investment management system are reconciled with Central
Recordkeeping Agency (CRA) records on daily basis.
1.5 Investment management fees
Investment management fees are recognised on daily accrual basis on closing Asset under
management (AUM) in accordance with IMA. The investment management fee is inclusive
of brokerage but excludes custodian charges and applicable taxes, if any.
1.6 Other expenses
Custody charges are recognised on daily accrual basis in accordance with IMA. Trustee
bank charges were recognised when they were debited by the trustee bank on a quarterly
basis. The trustee bank has discontinued levying charges with effect from July 01, 2013.
Notes to accounts
2.1 Contingent liabilities
(In `)
Particulars At March 31,
2015
At March 31,
2014
Other commitments Nil Nil
2.2 Investments
All investments and deposits under the scheme are performing assets, hence no provisions
for doubtful deposits, debts and for doubtful outstandings and accrued income are required
to be made. All the investments of the scheme are in the name of the NPS Trust.
Aggregate value of non-traded investments as on March 31, 2015 is Rs. 369,602,733
(March 31, 2014: Rs. 266,201,904). Non traded securities as per the PFRDA (Preparation of
financial statements and Auditor’s report of Schemes under National Pension System)
Guidelines – 2012 are those securities that are not traded on any stock exchange for a
period of 30 days prior to the valuation date. They are valued at yield to maturity basis, by
using spreads over the benchmark rate.
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
2.3 Details of transactions with sponsor and its related parties
Related parties and nature of relationship.
Nature of relationship Name of the related party
Pension fund manager ICICI Prudential Pension Funds Management Company
Limited
Sponsor company ICICI Prudential Life Insurance Company Limited
Associates and group
companies
- Holding company of
sponsor
ICICI Bank Limited
The following represents significant transactions between the Scheme and its related
parties.
(In `)
Name of
related party
Nature of
transaction
Transactions for the
year ended
Amount recoverable/
(payable)
March 31,
2015
March 31,
2014
At March
31, 2015
At March
31, 2014
ICICI Prudential
Pension Funds
Management
Company
Limited
Investment
management
fees
533,084 812,262 (21,270) (240,767)
Aggregate investments made by the scheme in the associates and group companies at
March 31, 2015 is Nil (March 31, 2014: Nil).
2.4 Investment management fees
The Investment Management Fees is charged on closing funds under management on daily
basis for all the schemes. In terms of the PFRDA’s letter no. PFRDA/6/PFM/9/2 dated July 31,
2014, the Company has started charging investment management fee of 0.01% per annum,
with effect from August 01, 2014. The investment management fee charged upto July 31,
2014 was 0.25% per annum.
2.5 Aggregate value of purchase and sale with percentage to average daily
net assets
Aggregate value of purchase and sale with percentage to average daily net assets is as
follows:
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
(In `)
Particulars Year ended
March 31, 2015
Year ended
March 31, 2014
Aggregate value of purchase and sale 13,542,147,470 3,713,692,740
% to average daily net assets 2,065.0% 1,284.3%
Aggregate value of purchase and sale (excluding liquid mutual fund)* with percentage to
average daily net assets is as follows:
(In `)
Particulars Year ended
March 31, 2015
Year ended
March 31, 2014
Aggregate value of purchase and sale 708,614,181 351,545,635
% to average daily net assets 108.1% 121.5%
*liquid mutual fund investments are held for day to day cash management, hence excluded.
2.6 Investments falling under each major industry group
The total value of investments falling under each major industry group (which constitutes
not less than 5% of the total investment in the major classification of the financials) are
disclosed as under:
Investment
classification
At March 31, 2015 At March 31, 2014
Market
value (In `)
% of
investment
class
Market
value (In `)
% of
investment
class
Mutual funds 20,671,170 100.0% 6,091,812 100.0%
Mutual funds 20,671,170 100.0% 6,091,812 100.0%
Fixed deposits - - 193,600 100.0%
Monetary intermediation
of commercial banks,
saving banks
- - 193,600 100.0%
Non-convertible
debentures 880,339,037 100.0% 423,340,769 100.0%
Other credit granting 178,491,955 20.3% 87,092,064 20.6%
Monetary intermediation
of commercial banks,
saving banks
122,628,970 13.9% - -
Activities of specialized
institutions granting credit
for house purchases that
also take deposits
105,965,307 12.0% 81,735,955 19.3%
Other financial service
activities, except
insurance & pension
funding
96,736,642 11.0% 26,587,144 6.3%
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
Investment
classification
At March 31, 2015 At March 31, 2014
Market
value (In `)
% of
investment
class
Market
value (In `)
% of
investment
class
Transmission of electric
energy 73,023,050 8.3% 19,070,880 4.5%
Manufacture of
commercial vehicles such
as vans, lorries etc
52,456,350 6.0% 1,485,373 0.4%
Activities of providing
internet access by
operator of the wired
infrastructure
52,389,189 6.0% 44,549,758 10.5%
Activities of commission
agents, brokers dealing in
wholesale trade of
agricultural raw material,
live animals, food,
beverages, intoxicants
and textiles
49,873,522 5.7% 40,611,360 9.6%
Support activities for
petroleum and natural gas
mining
48,780,017 5.5% - -
Electric power generation
by coal based thermal
power plants
- - 38,275,386 9.0%
Activities of holding
companies
13,950,560 1.6% 41,165,399 9.7%
Manufacture of
Aluminium from alumina
and by other methods
and products of
aluminium and alloys
40,208,142 4.6% 37,988,652 9.0%
Others 45,835,333 5.1% 4,778,798 1.1%
Net current assets 30,868,106 100.0% 16,692,922 100.0%
Net asset value 931,878,313 100.0% 446,319,103 100.0%
2.7 Statement of portfolio holding as on March 31, 2015
Security name Units Acquisition
cost (In `) Market value
(In `)
Mutual Funds 20,668,907 20,671,170
IDFC Cash fund - Direct Plan –Growth 12,163 20,668,907 20,671,170
Non-convertible debentures 846,302,424 880,339,037
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
Security name Units Acquisition
cost (In `) Market value
(In `)
8.85% Axis Bank Ltd (December 05,
2024) 700,000 70,000,000 72,697,520
9.81% Tata Motors Limited (August 20,
2024) 500,000 50,313,990 52,456,350
8.95% Infotel Broadband Services
Limited (September 15, 2020) 510,000 49,547,382 52,389,189
9.25% LIC Housing Finance Limited
(January 01, 2023) 480,000 49,816,800 50,509,824
8.23% Punjab National Bank (February
09, 2025) 500,000 50,000,000 49,931,450
9.95% Food Corporation of India
(March 07, 2022) 460,000 46,078,000 49,873,522
10.08% IOT Utkal Energy Services
Limited (February 20, 2025) 430,000 45,454,096 48,780,017
8.93% Power Grid Corporation
(October 20, 2029) 450,000 45,000,000 47,519,100
8.65% Power Finance Corporation
Limited (December 28, 2024) 420,000 42,000,000 42,963,438
9.38% IDFC (September 12, 2024) 400,000 40,000,000 42,773,960
8.79% Mahindra & Mahindra Financial
Services Limited (January 23, 2025) 420,000 42,000,000 41,009,892
8.75% IRFC (November 29, 2026) 390,000 38,400,695 40,946,022
9.55% Hindalco Industries Limited
(April 25, 2022) 390,000 39,843,588 40,208,142
9.81% Power Finance Corporation
Limited (October 07, 2018) 350,000 35,224,104 36,470,000
9.90% HDFC (December 29, 2018) 310,000 30,924,200 32,572,010
10.00% Shriram Transport Finance
Company Limited (July 15, 2019) 280,000 27,823,600 28,443,996
8.73% Power Grid Corporation
(October 11, 2021) 250,000 23,877,420 25,503,950
10.75% Shriram Transport Finance
Company Limited (October 24, 2018) 220,000 22,000,000 22,865,062
9.51% LIC Housing Finance Limited
(July 24, 2019) 190,000 19,000,000 19,814,416
8.87% Rural Electrification Corporation
Limited (March 08, 2020) 150,000 15,004,500 15,338,535
9.67% Tata Sons Limited (September
13, 2022) 130,000 13,041,781 13,950,560
9.098 % L&T IRCL (October 15, 2022) 75,000 7,500,000 7,965,308
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
Security name Units Acquisition
cost (In `) Market value
(In `)
9.098 % L&T IRCL (April 15, 2021) 70,000 7,000,000 7,324,254
9.098 % L&T IRCL (April 15, 2023) 65,000 6,500,000 6,930,788
9.098 % L&T IRCL (October 15, 2020) 60,000 6,000,000 6,254,904
9.098 % L&T IRCL (October 15, 2021) 50,000 5,000,000 5,262,860
9.098 % L&T IRCL (October 15, 2019) 45,000 4,500,000 4,655,187
9.098 % L&T IRCL (October 15, 2023) 40,000 4,000,000 4,282,196
9.18% HDFC (February 28, 2018) 30,000 2,945,540 3,069,057
10.25% Shriram Transport Finance
Company Limited (April 18, 2015) 21,000 2,106,300 2,100,563
10.09% MRF Limited (May 27, 2019) 20,000 2,040,800 2,100,168
11.60% Shriram Transport Finance
Company Limited (July 11, 2016) 20,000 2,061,824 2,016,388
10.09% MRF Limited (May 27, 2020) 10,000 999,544 1,059,669
9.75% Shriram Transport Finance
Company Limited (June 01, 2015) 3,000 298,260 300,741
Total 866,971,331 901,010,207
Statement of portfolio holding as on March 31, 2014
Security name Units Acquisition
cost (In `) Market
value (In `)
Mutual Funds 6,090,000 6,091,812
IDFC Cash fund - Direct Plan –Growth 3911 6,090,000 6,091,812
Non-convertible debentures 424,150,648 423,340,769
8.95% Infotel Broadband Services
Limited (September 15, 2020) 460,000 44,635,942 44,549,758
9.80% LIC Housing Finance Limited
(October 22, 2017) 420,000 41,655,276 42,450,954
9.95% Food Corporation of India Limited
(March 07, 2022) 400,000 39,976,000 40,611,360
9.80 % Talwandi Sabo Power Limited
(December 09, 2023) 380,000 37,808,110 38,275,386
9.55% Hindalco Industries Limited (April
25, 2022) 390,000 39,843,588 37,988,652
8.75% IRFC (November 29, 2026) 390,000 38,400,695 37,240,164
9.81% Power Finance Corporation
Limited (October 07, 2018) 350,000 35,224,104 35,337,435
9.90% HDFC (December 29, 2018) 310,000 30,924,200 31,379,657
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
Security name Units Acquisition
cost (In `) Market
value (In `)
10.75% Shriram Transport Finance
Company Limited (October24, 2018) 220,000 22,000,000 22,148,918
9.67% Tata Sons Limited (September 13,
2022) 200,000 20,317,448 20,051,000
8.73% Power Grid Corporation (October
11, 2021) 200,000 19,076,420 19,070,880
9.70% Tata Sons Limited (July 25, 2022) 150,000 15,003,000 15,064,830
8.87% Rural Electrification Corporation
Limited (March 08, 2020) 150,000 15,004,500 14,514,465
9.18% HDFC (February 12, 2018) 80,000 7,854,400 7,905,344
9.90% Tata Sons Limited (March 18,
2016) 30,000 3,015,300 3,025,497
9.90% Tata Sons Limited (February 24,
2016) 30,000 3,010,600 3,024,072
10.25% Shriram Transport Finance
Company Limited (April 18, 2015) 21,000 2,106,300 2,104,761
11.60% Shriram Transport Finance
Company Limited (July 11, 2016) 20,000 2,061,824 2,034,314
10.09% MRF Limited (May 27, 2019) 20,000 2,040,800 2,015,462
2.00% Tata Motors Limited Tranche-4
(March 31, 2016) 10,000 1,084,500 1,485,373
10.09% MRF Limited (May 27, 2020) 10,000 999,544 1,006,691
10.20% Tata Steel Limited (May 07,
2015) 10,000 1,043,500 1,001,500
10.75% Bharat Forge Limited (March 22,
2015) 10,000 766,337 755,145
9.75% Shriram Transport Finance
Company Limited (June 01, 2015) 3,000 298,260 299,151
Fixed deposits 193,600 193,600
8.50% State Bank of Indore Fixed
Deposit (July 10, 14) 1 118,000 118,000
8.00% State Bank of Indore Fixed
Deposit (July 18, 2014) 1 26,800 26,800
8% State Bank of Indore Fixed Deposit
(July 22, 2014) 1 20,900 20,900
8.50% State Bank of Indore Fixed
Deposit (July 11, 2014) 1 20,000 20,000
8.50% State Bank of Indore Fixed
Deposit (July 15, 2014) 1 7,900 7,900
Total 430,434,248 429,626,181
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
2.8 Key statistics
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
1. NAV per unit (`)I
(based on published NAV)
Open 16.2768 15.3231
High 18.8350 16.2768
Low 16.1992 14.7799
End
18.8350 16.2768
2. Closing Assets Under Management (` in Lakhs)
End 9,318.78 4,463.19
Average daily net assets (AAUM)II
6,558.06 2,891.61
3. Gross income as % of AAUMIII
9.38% 9.25%
4. Expense ratio
a. Total expense as % of AAUM (scheme wise)IV
0.0889% 0.2887%
b. Management fee as % of AAUM (scheme wise) 0.0813% 0.2809%
5. Net income as % of AAUMV
9.29% 8.96%
6. Portfolio turnover ratioVI
21.96% 15.22%
7. Total dividend per unit distributed during the period - -
8. Returns: (%)
a. Last one year 15.72% 6.22%
Benchmark 15.08% 5.36%
b. Since inception 88.35% 62.77%
Benchmark 65.50% 43.81%
c. Compound annualised yield (%)VII
Last 1 year 15.58% 6.22%
Last 3 year 11.96% 10.59%
Last 5 year 11.34% NA
Since launch of the scheme 11.39% 10.54%
Launch Date May 18, 2009
I. NAV = (Market value of investment held by scheme + value of current assets - value of
current liability and provisions, if any)/(no. of units at the valuation date (before creation/
redemption of units)
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
The last published NAV in FY 2014 was on March 28, 2014 of ₹ 16.2768 since it was the
last business day of the financial year. However, since equity markets were operational
on March 31, 2014, it was directed by NPS trust to value its investments on prices of
March 31, 2014 to reflect the correct AUM as on Balance Sheet date. Accordingly, the
NAV computed on March 31, 2014 was ₹ 16.2887. Since March 31, 2014 was a non
business day, no transactions were conducted by the subscribers and the NAV
computed for March 31, 2014 was for disclosure purpose only.
II. AAUM = Average daily net assets
III. Gross income = Income includes Interest income, Dividend income and Net
profit/(loss) on sale of investments
IV. Total expenses = Expenses include management fees, custody fees, trustee bank
charges but excludes unrealised loss
V. Net income = Gross income less Total expenses (excludes unrealised gain/loss)
VI. Portfolio turnover = Lower of sales or purchase divided by the average AUM for the
period. Investments in liquid mutual fund is excluded from the turnover as the same is
primarily for liquidity management.
VII. Compounded annualised yield is to be calculated based on following formula:
= ((1+ cumulative return)^n) -1 (where n=365/no. of days)
ICICI Prudential Pension Funds Management Company Limited - Scheme
C Tier I
2.9 Previous year comparatives
Previous year amounts have been regrouped and reclassified wherever necessary to
conform to current year’s presentation in line with the PFRDA (Preparation of financial
statements and Auditor’s report of Schemes under National Pension System) Guidelines -
2012.
For Borkar & Muzumdar
Chartered Accountants
Firm Registration No. 101569W
For and on behalf of the Board of Directors
of ICICI Prudential Pension Funds
Management Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Meghana Baji Vishal Mehta
Chief Executive Officer Company Secretary
Date : April 24, 2015
Place : Mumbai
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ICICI Prudential Pension Funds Management
Company Limited - Scheme G Tier I
Financial Statements together with Auditor’s Report for
the year ended March 31, 2015
ICICI Prudential Pension Funds Management
Company Limited - Scheme G Tier I
Financial Statements together with Auditor’s
Report
For the year ended March 31, 2015
Contents
Auditor’s Report
Balance Sheet
Revenue Account
Accounting Policies and Notes to Accounts
INDEPENDENT AUDITORS' REPORT To, The Trustees, National Pension System Trust Report on Financial Statements 1 We have audited the accompanying financial statements of NPS Trust A/c ICICI Prudential Pension
Funds Management Company Limited, Scheme G - Tier I (Scheme) under the National Pension System Trust (NPS Trust) managed by ICICI Prudential Pension Funds Management Company Limited (‘PFM’ or the ‘Company) which comprise of the Balance Sheet as at March 31, 2015, and the Revenue Account for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements 2 Management of the PFM, in accordance with the Pension Fund Regulatory and Development
Authority (PFRDA) Guidelines and the Investment Management Agreement (IMA) with the NPS Trust, is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Scheme in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act 2013 (the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial statements are also approved by the NPS Trust on the recommendation of the Board of Directors of the PFM.
Auditor’s Responsibility 3 4
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
5 An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the PFM’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.
6 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements. Opinion 7 In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required by PFRDA (Preparation of Financial Statements and Auditors Report of Schemes under National Pension System) Guidelines 2012 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a)
in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2015; and
(b)
in the case of the Revenue Account, of the surplus of the Scheme for the year ended on that date;
Report on Other Legal And Regulatory Requirements 8 As required by the PFRDA (Preparation of Financial Statements and Auditors Report of Schemes
under National Pension System) Guidelines 2012, as amended, and section 143(3) of the Act we report that:
a) We have obtained all information and explanations which to the best of our knowledge and belief
were necessary for the purpose of the audit. b) The Balance Sheet and Revenue account of the Scheme are in agreement with the books of account
of the Scheme. c) In our opinion proper books of account of the Scheme, as required by the PFRDA has been
maintained by the PFM as far as appears from our examination of those books. d) All transactions expenses in excess of the limits contractually agreed to / approved by the Authority
are borne by the Pension Fund (if any) and are not charged to the NAV of the Scheme. e) In our opinion the Balance Sheet and Revenue Account of the Scheme dealt with by this report
comply with the “PFRDA (Preparation of Financial Statements and Auditor’s Report of Scheme under National Pension System) Guidelines-2012” and the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
9 We further certify that
a) Investments have been valued in accordance with the guidelines issued by the Authority. b) Transaction and claims/fee raised by different entities are in accordance with the prescribed fee. For Borkar & Muzumdar
Chartered Accountants Firm Registration No. 101569W B M Agarwal Partner M No.: 33254 Place: Mumbai Date: 24th April, 2015
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME G TIER I
BALANCE SHEET AT MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Sources of funds
Unit capital 1 635,168,805 341,406,510
Reserves and surplus 2 423,091,556 129,844,940
Current liabilities and provisions 3 89,388,796 268,882
Borrowings - -
Total 1,147,649,157 471,520,332
Application of funds
Investments (long term and short term) 4 1,039,973,635 466,956,707
Deposits 5 - -
Other current assets 6 107,675,522 4,563,625
Total 1,147,649,157 471,520,332
(a) Net asset as per Balance Sheet (Schedule 4+5+6 -3) 1,058,260,361 471,251,450
(b) Number of units outstanding 63,516,880 34,140,651
(c) NAV per unit (a)/(b) (`) (Refer note 2.8 (II)) 16.6611 13.8032
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ScheduleParticularsScheme G Tier I
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME G TIER I
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Income from investments
Interest income 57,824,445 24,567,619
Dividend income - -
Net profit/(loss) on sale/redemption of investments (other than inter-
scheme transfer/sale)13,412,354 (8,488,903)
Net profit/(loss) on inter-scheme transfer/sale of investments - -
Unrealised gain on appreciation in investments 64,438,633 588,140
Total income (A) 135,675,432 16,666,856
Expenses and losses
Unrealised losses in value of investments 206,950 9,034,862
Provision for outstanding accrued income considered doubtful - -
Provision for doubtful deposits and current assets - -
Management fees (including service tax) [Refer Note 2.4] 575,052 837,979
Trusteeship/regulatory fees - -
Publicity expenses - -
Audit fees - -
Custodian fees 58,516 24,140
Trustee bank fees - 126
CRA fees 1,650,271 1,132,601
Less : Amount recovered on sale of units on account of CRA charges
(1,650,271) (1,132,601)
Total expenditure (B) 840,518 9,897,107
Net income/(expenditure) for the year (A-B) appropriated to
Balance Sheet134,834,914 6,769,749
Balance at the beginning of the year 24,630,376 17,860,627
Balance at the end of the year carried to Balance Sheet 159,465,290 24,630,376
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached.
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
Scheme G Tier IParticulars Schedule
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME G TIER I
Schedules forming part of the financial statements
Schedule 1: Unit capital (In `)
March 31, 2015 March 31, 2014
Initial capital - -
Unit capital
Opening balance 341,406,510 141,667,713
Additions during the year 306,139,288 208,022,456
Deduction during the year (12,376,993) (8,283,659)
Closing balance 635,168,805 341,406,510
Number of units of face value ` 10 63,516,880 34,140,651
#VALUE!
Schedule 2 : Reserves and surplus (In `)
March 31, 2015 March 31, 2014
Unit premium reserve
Opening balance 105,214,564 33,105,155
Additions during the year 165,200,826 75,326,413
Deduction during the year (6,789,124) (3,217,004)
Closing balance 263,626,266 105,214,564
Surplus/(deficit) in Revenue account
Opening balance 24,630,376 17,860,627
Additions during the year 134,834,914 6,769,749
Deduction during the year - -
Closing balance 159,465,290 24,630,376
General reserve* - -
Appropriation account* - -
Total 423,091,556 129,844,940
* The balances have been nil throughout the year
Schedule 3 : Current liabilities and provisions (In `)
March 31, 2015 March 31, 2014
Current liabilities
Sundry creditors 43,997 264,371
Contracts for purchase of investments 88,367,580 -
Interest received in advance 102,938 -
Unclaimed distributed income - -
Pending creation of units - -
Unit redemption payable 874,281 4,511
Provisions - -
Total 89,388,796 268,882
Scheme G Tier I
Scheme G Tier I
ParticularsScheme G Tier I
Particulars
Particulars
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME G TIER I
Schedules forming part of the financial statements
Schedule 4: Investments (In `)
March 31, 2015 March 31, 2014
Equity shares - -
Preference shares - -
Debentures and bonds - -
Central and state government securities (including treasury bills) 1,005,541,265 439,758,616
Commercial Paper - -
Others - Mutual funds 34,432,370 27,198,091
Total 1,039,973,635 466,956,707
Schedule 5: Deposits
(In `)
March 31, 2015 March 31, 2014
Deposits with scheduled banks - -
Others - -
Total - -
Schedule 6: Other current assets
(In `)
March 31, 2015 March 31, 2014
Balances with banks in current/saving account 83 7,852
Cash on hand - -
Sundry debtors - -
Contracts for sale of investments 96,457,563 -
Outstanding and accrued income 11,217,876 4,555,773
Advance, deposits etc. - -
Shares/debentures/others application money pending allotment - -
Others - Dividend receivable - -
Total 107,675,522 4,563,625
Particulars
Scheme G Tier IParticulars
ParticularsScheme G Tier I
Scheme G Tier I
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
Schedule 7
Significant accounting policies and notes to accounts for year ended March
31, 2015
1.1 Background
ICICI Prudential Pension Funds Management Company Limited (‘the Company’) is
appointed as a Pension Fund Manager (‘PFM’) by the National Pension System Trust
(‘NPS’). The Company has entered into an Investment Management Agreement (‘IMA’)
with NPS. The Pension Fund Regulatory and Development Authority (‘PFRDA’)
guidelines require each PFM to manage subscribers’ funds made available to it by the
Trustee bank along with the data made available by the Central Recordkeeping Agency
(‘CRA’) at a consolidated level. The Company makes investments as per the IMA, various
other circulars/guidelines issued by the PFRDA in this context from time to time and the
scheme wise flow of funds.
The Company manages six separate schemes under the two tiered structure (Tier I and
II) prescribed under the NPS. The schemes are classified as Scheme E, C and G based on
the underlying asset class prescribed under the NPS as follows:
Scheme E – Equity market instruments
Scheme C – Credit risk bearing fixed income instruments
Scheme G – Government securities
1.2 Basis of preparation
The financial statements have been prepared in accordance with the PFRDA (Preparation
of financial statements and Auditor’s report of Schemes under National Pension System)
Guidelines – 2012 (‘Guidelines’), Accounting Standards (‘AS’) notified under section 133
of the Companies Act, 2013, read together with paragraph 7 of the Companies
(Accounts) Rules 2014 to the extent made applicable by the Guidelines and generally
accepted accounting principles. The Guidelines specifically exempt the schemes from
the applicability of AS 3 (Cash Flow Statement) and AS 17 (Segmental Reporting). These
financial statements have been prepared on an accrual basis, except as otherwise stated.
The financials have been prepared for Scheme G Tier I being managed by the Company.
1.3 Investments
Purchase and sale of securities are accounted on trade date. Investments are reconciled
with the custodian records on daily basis. The holding cost of investments is determined
by the weighted average cost method and the cost does not include brokerage and
other transaction charges.
Valuation of investments
All investments are marked to market and are carried in the Balance Sheet at the market
value as on Balance Sheet date/date of determination/date of valuation. Unrealised
gain/(loss), if any, is transferred to Revenue account.
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
As per directive received from NPS, the valuation of investments is carried out by Stock
Holding Corporation of India Limited (SHCIL). The Investment valuation methodology
adopted by SHCIL is as follows:
Central government as well as State government securities are valued at the average
traded prices received from independent valuation agencies.
Mutual fund units are valued based on the net asset values of the preceding day of the
valuation date.
Income earned on investments
Interest income on investments is recognised on daily accrual basis. In respect of
investments purchased, interest paid for the period from the last interest due date upto
the date of purchase is debited to interest recoverable account and not included in cost
of purchase. Similarly interest received at the time of sale for the period from the last
interest due date upto the date of sale is credited to interest recoverable account and not
included in sale value. Accretion of discount/amortization of premium relating to debt
securities is recognised over the holding/maturity period on a straight-line basis.
Profit or loss on sale of debt securities is the difference between the sale consideration
net of expenses, if any and the weighted average amortised cost as on the date of sale.
Profit or loss on sale of mutual fund units is the difference between the sale
consideration net of expenses, if any and the weighted average book cost.
Non-performing assets (NPA)
An investment is regarded as NPA, if interest/principal or both amount has not been
received or has remained outstanding for one quarter from the day such
income/installment has fallen due. Further the Company also classifies following assets
as impaired.
1. In case of investments, securities where the certificates, if any, are not traceable for a
protracted period
2. In case of assets, other than investments, where in the opinion of the Board of
Directors, there is a substantial diminution in value.
Where income receivable on investments has accrued but has not been received for a
period of one quarter beyond the due date, provision shall be made by debiting to the
Revenue account for the income so accrued and no further accrual of income shall be
made in respect of such investments.
Income on NPAs shall be recognised on cash basis.
The Scheme’s exposure is restricted to securities of Central and State Government
which has a sovereign guarantee; therefore NPA is not envisaged for the Scheme.
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
1.4 Units reconciliation
The subscribers’ units as per investment management system are reconciled with
Central Recordkeeping Agency (CRA) records on daily basis.
1.5 Investment management fees
Investment management fees are recognised on daily accrual basis on closing Asset
under management (AUM) in accordance with IMA. The investment management fee is
inclusive of brokerage but excludes custodian charges and applicable taxes, if any.
1.6 Other expenses
Custody charges are recognised on daily accrual basis in accordance with IMA. Trustee
bank charges were recognised when they were debited by the trustee bank on a
quarterly basis. The trustee bank has discontinued levying charges with effect from July
01, 2013.
Notes to accounts
2.1 Contingent liabilities
(In `)
Particulars At March 31,
2015
At March 31,
2014
Other commitments Nil Nil
2.2 Investments
All investments and deposits under the scheme are performing assets, hence no
provisions for doubtful deposits, debts and for doubtful outstandings and accrued
income are required to be made. All the investments of the scheme are in the name of
the NPS Trust. All investments are traded investments.
2.3 Details of transactions with sponsor and its related parties
Related parties and nature of relationship.
Nature of relationship Name of the related party
Pension fund manager ICICI Prudential Pension Funds Management
Company Limited
Sponsor company ICICI Prudential Life Insurance Company Limited
Associates and group
companies
Holding company of sponsor
ICICI Bank Limited
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
The following represents significant transactions between the Scheme and its related
parties
(In `)
Name of
related party
Nature of
transaction
Transactions for the
year ended
Amount recoverable/
(payable)
March 31,
2015
March 31,
2014
At March
31, 2015
At March
31, 2014
ICICI Prudential
Pension Funds
Management
Company
Limited
Investment
management
fees
575,052
837,979
(24,184)
(247,050)
Aggregate investments made by the scheme in the associates and group companies at
March 31, 2015 is Nil (March 31, 2014: Nil).
2.4 Investment management fees
The Investment Management Fees is charged on closing funds under management on
daily basis for all the schemes. In terms of the PFRDA’s letter no. PFRDA/6/PFM/9/2 dated
July 31, 2014, the Company has started charging investment management fee of 0.01%
per annum, with effect from August 01, 2014. The investment management fee charged
upto July 31, 2014 was 0.25% per annum.
2.5 Aggregate value of purchase and sale with percentage to average daily
net assets
Aggregate value of purchase and sale with percentage to average daily net assets is as
follows:
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 11,721,491,673 4,782,732,520
% to average daily net assets 1,613.4% 1,603.2%
Aggregate value of purchase and sale (excluding liquid mutual fund)* with percentage to
average daily net assets is as follows
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 1,431,044,396 1,821,260,984
% to average daily net assets 197.0% 610.5%
*liquid mutual fund investments are held for day to day cash management, hence excluded.
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
2.6 Investments falling under each major industry group
The total value of investments falling under each major industry groups (which
constitutes not less than 5% of the total investment in the major classification of the
financials) are disclosed as under:
Investment
classification
At March 31, 2015 At March 31, 2014
Market value
(In `)
% of
investment
class
Market
value (In `)
% of
investment
class
Government
securities &
Treasury bills
1,005,541,265 100.0% 439,758,616 100.0%
Government
securities & Treasury
bills
1,005,541,265 100.0% 439,758,616 100.0%
Mutual funds 34,432,370 100.0% 27,198,091 100.0%
Mutual funds 34,432,370 100.0% 27,198,091 100.0%
Net current assets 18,286,726 100.0% 4,294,743 100.0%
Net assets value 1,058,260,361 100.0% 471,251,450 100.0%
2.7 Statement of portfolio holding as on March 31, 2015
Security name Units Acquisition
cost (In `) Market value
(In `)
Government securities & Treasury
bills 947,594,090 1,005,541,265
8.32% GOI 2032 (August 02, 2032) 1,802,000 172,602,094 188,579,300
9.23% GOI 2043 (December 23, 2043) 1,302,500 139,953,545 150,243,375
9.20% GS 2030 (September 30, 2030) 951,400 99,091,977 106,385,548
8.28% GOI 2027 (September 21, 2027) 931,700 88,230,044 96,673,192
8.28% GOI 2032 (February 15, 2032) 875,000 87,290,770 91,350,000
182 Days TBILL 2015 (July 02, 2015) 900,000 88,367,580 88,346,970
8.24% GOI 2027 (February 15, 2027) 491,400 46,971,012 50,717,394
91 Days TBILL 2015 (April 30, 2015) 480,000 47,623,248 47,759,760
8.30% GOI 2040 (July 02, 2040) 420,000 43,331,150 44,116,800
8.24% GOI 2033 (November 10, 2033) 337,000 35,055,180 35,226,610
8.30% GOI 2042 (December 31, 2042) 320,000 31,188,118 33,635,200
7.40% GOI 2035 (September 09, 2035) 203,000 16,873,360 19,520,988
8.17% GOI 2044 (December 01, 2044) 186,000 19,389,611 19,427,700
8.83% GOI 2041 (December 12, 2041) 110,000 12,003,135 12,166,000
9.53% Madhya Pradesh SDL (August
01, 2023) 78,000 7,862,400 8,470,527
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
Security name Units Acquisition
cost (In `) Market value
(In `)
9.72% West Bengal SDL (February 12,
2024) 60,700 6,071,214 6,661,588
9.67% Jharkhand SDL (February 12,
2024) 47,500 4,750,950 5,212,208
8.33% GOI 2036 (June 07, 2036) 10,000 938,700 1,048,105
Mutual Funds 34,428,325 34,432,370
IDFC Cash fund – Direct Plan - Growth 20,261 34,428,325 34,432,370
Total 982,022,414 1,039,973,635
Statement of portfolio holding as on March 31, 2014
Security name Units Acquisition
cost (In `) Market
value (In `)
Government securities & Treasury
bills 446,033,390 439,758,616
8.28% GOI 2027 (September 21, 2027) 1,600,000 150,623,900 149,360,000
8.32% GOI 2032 (August 02, 2032) 1,001,800 94,874,794 93,092,265
8.12% GOI 2020 (December 10, 2020). 501,000 48,631,840 47,810,430
364 Days TBILL 2014 (April 03, 2014) 450,000 44,899,245 44,989,650
8.28% GOI 2032 (February 15, 2032) 425,000 41,071,270 39,333,750
7.40% GOI 2035 (September 09, 2035) 203,000 16,873,360 17,071,082
8.83% GS 2041 (December 12, 2041) 110,000 12,003,135 10,728,850
9.84% Andhra Pradesh SDL 2024
(February 26, 2024) 77,000 7,724,170 7,894,425
9.53% Madhya Pradesh SDL(August 01,
2023) 78,000 7,862,400 7,835,256
9.72% West Bengal SDL 2024 (February
12, 2024) 60,700 6,071,214 6,161,778
9.20% GOI 2030 (September 30, 2030) 50,000 4,994,000 5,044,500
9.67% Jharkhand SDL 2024 (February
12, 2024) 47,500 4,750,950 4,806,620
7.16% GOI 2023 (May 20, 2023) 50,000 4,401,000 4,387,500
8.33% GOI 2036 (June 07, 2036) 10,000 938,700 925,800
8.24% GOI 2027 (February 15, 2027) 3,400 313,412 316,710
Mutual Funds 27,190,000 27,198,091
IDFC Cash fund – Direct Plan - Growth 27,190,000 27,198,091
Total 473,223,390 466,956,707
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
2.8 Key statistics
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
1. NAV per unit (`)I
(based on published NAV)
Open 13.7976 13.5918
High 16.7008 14.6979
Low 13.6027 12.7353
End II
16.6611 13.7976
2. Closing Assets Under Management (` in Lakhs)
End 10,582.60 4,712.51
Average daily net assets (AAUM)II
7,265.30 2,983.17
3. Gross income as % of AAUMIII
9.81% 5.39%
4. Expense ratio
a. Total expense as % of AAUM (scheme wise)IV
0.0872% 0.2890%
b. Management fee as % of AAUM (scheme wise) 0.0792% 0.2809%
5. Net income as % of AAUMV
9.72% 5.10%
6. Portfolio turnover ratioVI
64.16% 258.47%
7. Total dividend per unit distributed during the period -
8. Returns: (%)
a. Last one year 20.75% 1.51%
Benchmark 15.72% 3.91%
b. Since inception 66.61% 37.98%
Benchmark 54.04% 33.12%
c. Compound annualised yield (%)VII
Last 1 year 20.57% 1.51%
Last 3 year 11.74% 7.03%
Last 5 year 9.77% NA
Since launch of the scheme 9.08% 6.84%
Launch Date May 18, 2009
I. NAV = (Market value of investment held by scheme + value of current assets - value of
current liability and provisions, if any)/ (no. of units at the valuation date (before
creation/ redemption of units)
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
The last published NAV in FY 2014 was on March 28, 2014 of ₹ 13.7976 since it was the
last business day of the financial year. However, since equity markets were operational
on March 31, 2014, it was directed by NPS trust to value its investments on prices of
March 31, 2014 to reflect the correct AUM as on Balance Sheet date. Accordingly, the
NAV computed on March 31, 2014 was ₹ 13.8032. Since March 31, 2014 was a non
business day, no transactions were conducted by the subscribers and the NAV
computed for March 31, 2014 was for disclosure purpose only.
II. AAUM = Average daily net assets
III. Gross income = Income includes Interest income, Dividend income and Net
profit/(loss) on sale of investments
IV. Total expenses = Expenses include management fees, custody fees, trustee bank
charges but excludes unrealised loss
V. Net income = Gross income less Total expenses (excludes unrealised gain/loss)
VI. Portfolio turnover = Lower of sales or purchase divided by the average AUM for the
period. Investments in liquid mutual fund is excluded from the turnover as the same is
primarily for liquidity management.
VII. Compounded annualised yield is to be calculated based on following formula:
= ((1+ cumulative return)^n) -1 (where n=365/no. of days)
ICICI Prudential Pension Funds Management Company Limited –
Scheme G Tier I
2.9 Previous year comparatives
Previous year amounts have been regrouped and reclassified wherever necessary to
conform to current year’s presentation in line with the PFRDA (Preparation of financial
statements and Auditor’s report of Schemes under National Pension System) Guidelines
- 2012.
For Borkar & Muzumdar
Chartered Accountants
Firm Registration No. 101569W
For and on behalf of the Board of Directors
of ICICI Prudential Pension Funds
Management Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Meghana Baji Vishal Mehta
Chief Executive Officer Company Secretary
Date : April 24, 2015
Place : Mumbai
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ICICI Prudential Pension Funds Management
Company Limited - Scheme E Tier II
Financial Statements together with Auditor’s Report for
the year ended March 31, 2015
ICICI Prudential Pension Funds Management
Company Limited - Scheme E Tier II
Financial Statements together with Auditor’s
Report
For the year ended March 31, 2015
Contents
Auditor’s Report
Balance Sheet
Revenue Account
Accounting Policies and Notes to Accounts
INDEPENDENT AUDITORS' REPORT To, The Trustees, National Pension System Trust Report on Financial Statements 1 We have audited the accompanying financial statements of NPS Trust A/c ICICI Prudential Pension
Funds Management Company Limited, Scheme E - Tier II (Scheme) under the National Pension System Trust (NPS Trust) managed by ICICI Prudential Pension Funds Management Company Limited (‘PFM’ or the ‘Company) which comprise of the Balance Sheet as at March 31, 2015, and the Revenue Account for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements 2 Management of the PFM, in accordance with the Pension Fund Regulatory and Development
Authority (PFRDA) Guidelines and the Investment Management Agreement (IMA) with the NPS Trust, is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Scheme in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act 2013 (the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial statements are also approved by the NPS Trust on the recommendation of the Board of Directors of the PFM.
Auditor’s Responsibility 3 4
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
5 An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the PFM’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.
6 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements. Opinion 7 In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required by PFRDA (Preparation of Financial Statements and Auditors Report of Schemes under National Pension System) Guidelines 2012 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a)
in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2015; and
(b)
in the case of the Revenue Account, of the surplus of the Scheme for the year ended on that date;
Report on Other Legal And Regulatory Requirements 8 As required by the PFRDA (Preparation of Financial Statements and Auditors Report of Schemes
under National Pension System) Guidelines 2012, as amended, and section 143(3) of the Act we report that:
a) We have obtained all information and explanations which to the best of our knowledge and belief
were necessary for the purpose of the audit. b) The Balance Sheet and Revenue account of the Scheme are in agreement with the books of account
of the Scheme. c) In our opinion proper books of account of the Scheme, as required by the PFRDA has been
maintained by the PFM as far as appears from our examination of those books. d) All transactions expenses in excess of the limits contractually agreed to / approved by the Authority
are borne by the Pension Fund (if any) and are not charged to the NAV of the Scheme. e) In our opinion the Balance Sheet and Revenue Account of the Scheme dealt with by this report
comply with the “PFRDA (Preparation of Financial Statements and Auditor’s Report of Scheme under National Pension System) Guidelines-2012” and the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
9 We further certify that
a) Investments have been valued in accordance with the guidelines issued by the Authority. b) Transaction and claims/fee raised by different entities are in accordance with the prescribed fee. For Borkar & Muzumdar
Chartered Accountants Firm Registration No. 101569W B M Agarwal Partner M No.: 33254 Place: Mumbai Date: 24th April, 2015
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME E TIER II
BALANCE SHEET AT MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Sources of funds
Unit capital 1 83,443,422 56,043,486
Reserves and surplus 2 57,857,326 17,807,029
Current liabilities and provisions 3 1,511,691 1,842,829
Borrowings - -
Total 142,812,439 75,693,344
Application of funds
Investments (long term and short term) 4 141,839,209 73,738,300
Deposits 5 - -
Other current assets 6 973,230 1,955,044
Total 142,812,439 75,693,344
(a) Net asset as per Balance Sheet (Schedule 4+5+6 -3) 141,300,748 73,850,515
(b) Number of units outstanding 8,344,342 5,604,349
(c) NAV per unit (a)/(b) (`) (Refer note 2.8 (II)) 16.9337 13.1774
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ScheduleParticularsScheme E Tier II
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME E TIER II
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Income from investments
Interest income 202 -
Dividend income 1,502,909 668,383
Net profit/(loss) on sale/redemption of investments (other than inter-
scheme transfer/sale) 1,326,995 817,026
Net profit/(loss) on inter-scheme transfer/sale of investments - -
Unrealised gain on appreciation in investments 24,454,362 8,670,298
Total income (A) 27,284,468 10,155,707
Expenses and losses
Unrealised losses in value of investments 3,184,392 225,135
Provision for outstanding accrued income considered doubtful - -
Provision for doubtful deposits and current assets - -
Management fees (including service tax) [Refer Note 2.4] 90,526 124,551
Trusteeship/regulatory fees - -
Publicity expenses - -
Audit fees - -
Custodian fees 9,255 3,695
Trustee bank fees - 19
CRA fees 28,321 21,683
Less : Amount recovered on sale of units on account of CRA
charges (28,321) (21,683)
Total expenditure (B) 3,284,173 353,400
Net income/(expenditure) for the year (A-B) appropriated
to Balance Sheet24,000,295 9,802,307
Balance at the beginning of the year 10,602,842 800,535
Balance at the end of the year carried to Balance Sheet 34,603,137 10,602,842
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached.
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ParticularsScheme E Tier II
Schedule
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME E TIER II
Schedules forming part of the financial statements
Schedule 1: Unit capital (In `)
March 31, 2015 March 31, 2014
Initial capital - -
Unit capital
Opening balance 56,043,486 26,041,622
Additions during the year 34,201,018 33,332,883
Deduction during the year (6,801,082) (3,331,019)
Closing balance 83,443,422 56,043,486
Number of units of face value ` 10 8,344,342 5,604,349
Schedule 2 : Reserves and surplus (In `)
March 31, 2015 March 31, 2014
Unit premium reserve
Opening balance 7,204,187 1,451,305
Additions during the year 20,204,075 6,288,885
Deduction during the year (4,154,073) (536,003)
Closing balance 23,254,189 7,204,187
Surplus/(deficit) in Revenue account
Opening balance 10,602,842 800,535
Additions during the year 24,000,295 9,802,307
Deduction during the year - -
Closing balance 34,603,137 10,602,842
General reserve* - -
Appropriation account* - -
Total 57,857,326 17,807,029
* The balances have been nil throughout the year
Schedule 3 : Current liabilities and provisions (In `)
March 31, 2015 March 31, 2014
Current liabilities
Sundry creditors 6,268 38,166
Contracts for purchase of investments 1,445,058 1,783,128
Interest received in advance 144 -
Unclaimed distributed income - -
Pending creation of units -
Unit redemption payable 60,221 21,535
Provisions - -
Total 1,511,691 1,842,829
Particulars
Particulars
Particulars
Scheme E Tier II
Scheme E Tier II
Scheme E Tier II
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME E TIER II
Schedules forming part of the financial statements
Schedule 4: Investments (In `)
March 31, 2015 March 31, 2014
Equity shares 141,249,959 73,288,166
Preference shares - -
Debentures and bonds - -
Central and state government securities (including treasury bills) - -
Commercial Paper - -
Others - Mutual funds 589,250 450,134
Total 141,839,209 73,738,300
Schedule 5: Deposits (In `)
March 31, 2015 March 31, 2014
Deposits with scheduled banks - -
Others - -
Total - -
Schedule 6: Other current assets (In `)
March 31, 2015 March 31, 2014
Balances with banks in current/saving account 34,552 8,404
Cash on hand - -
Sundry debtors - -
Contracts for sale of investments 926,908 1,902,161
Outstanding and accrued income - -
Advance, deposits etc. - -
Shares/debentures/others application money pending allotment - -
Others - Dividend receivable 11,770 44,479
Total 973,230 1,955,044
Scheme E Tier II
Scheme E Tier II
ParticularsScheme E Tier II
Particulars
Particulars
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
Schedule 7
Significant accounting policies and notes to accounts for year ended March
31, 2015
1.1 Background
ICICI Prudential Pension Funds Management Company Limited (‘the Company’) is
appointed as a Pension Fund Manager (‘PFM’) by the National Pension System Trust
(‘NPS’). The Company has entered into an Investment Management Agreement (‘IMA’)
with NPS. The Pension Fund Regulatory and Development Authority (‘PFRDA’)
guidelines require each PFM to manage subscribers’ funds made available to it by the
Trustee bank along with the data made available by the Central Recordkeeping Agency
(‘CRA’) at a consolidated level The Company makes investments as per the IMA, various
other circulars/guidelines issued by the PFRDA in this context from time to time and the
scheme wise flow of funds.
The Company manages six separate schemes under the two tiered structure (Tier I and
II) prescribed under the NPS. The schemes are classified as Scheme E, C and G based on
the underlying asset class prescribed under the NPS as follows:
Scheme E – Equity market instruments
Scheme C – Credit risk bearing fixed income instruments
Scheme G – Government securities
1.2 Basis of preparation
The financial statements have been prepared in accordance with the PFRDA (Preparation
of financial statements and Auditor’s report of Schemes under National Pension System)
Guidelines – 2012 (‘Guidelines’), Accounting Standards (‘AS’) notified under section 133
of the Companies Act, 2013, read together with paragraph 7 of the Companies
(Accounts) Rules 2014 to the extent made applicable by the Guidelines and generally
accepted accounting principles. The Guidelines specifically exempt the schemes from
the applicability of AS 3 (Cash Flow Statement) and AS 17 (Segmental Reporting). These
financial statements have been prepared on an accrual basis, except as otherwise stated.
The financials have been prepared for Scheme E Tier II being managed by the Company.
1.3 Investments
Purchase and sale of securities are accounted on trade date. Investments are reconciled
with the custodian records on daily basis. The holding cost of investments is determined
by the weighted average cost method and the cost does not include brokerage and
other transaction charges.
Valuation of Investments
All investments are marked to market and are carried in the Balance Sheet at the market
value as on Balance Sheet date/date of determination/date of valuation. Unrealised
gain/(loss), if any, is transferred to Revenue account.
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
As per directive received from NPS, the valuation of investments is carried out by Stock
Holding Corporation of India Limited (SHCIL). The Investment valuation methodology
adopted by SHCIL is as follows:
Listed equity shares are valued at market value, being the last quoted closing price on
the National stock exchange (NSE). If they are not quoted on NSE, then the last quoted
closing price on the Bombay stock exchange (BSE) is taken.
Non traded rights are valued at the difference of closing market price of the original
equity share for the day and the offer price. Traded rights are valued at the closing
market price of the rights renunciation till the time of application. In the event of
application of rights, the rights entitlement would be valued at the closing market price of
the original equity share till the date of allotment/listing.
Mutual fund units are valued based on the net asset values of the preceding day of the
valuation date.
Income earned on investments
Dividend income and non-convertible debenture received in lieu of dividend is
recognised on the `ex-dividend date’. Bonus shares to which the scheme becomes
entitled are recognized only when the original shares on which the bonus entitlement
accrues are traded on the stock exchange on an ex-bonus basis. Similarly, rights
entitlements are recognized only when the original shares on which the right entitlement
accrues are traded on the stock exchange on an ex-rights basis.
Profit or loss on sale of equity shares/mutual fund units is the difference between the
sale consideration net of expenses, if any and the weighted average book cost.
1.4 Units reconciliation
The subscribers’ units as per investment management system are reconciled with
Central Recordkeeping Agency (CRA) records on daily basis.
1.5 Investment management fees
Investment management fees are recognised on daily accrual basis on closing Asset
Under Management (AUM) in accordance with IMA. The investment management fee is
inclusive of brokerage but excludes custodian charges and applicable taxes, if any.
1.6 Other expenses
Custody charges are recognised on daily accrual basis in accordance with IMA. Trustee
bank charges were recognised when they were debited by the trustee bank on a
quarterly basis. The trustee bank has discontinued levying charges with effect from July
01, 2013.
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
Notes to accounts
2.1 Contingent liabilities
(In `)
Particulars At March 31,
2015
At March 31,
2014
Uncalled liability on partly paid shares Nil Nil
Other commitments Nil Nil
2.2 Investments
All investments are performing investments. All investments of the scheme are in the
name of the NPS Trust. All investments are traded investments.
2.3 Details of transactions with sponsor and its related parties
Related parties and nature of relationship.
Nature of relationship Name of the related party
Pension fund manager ICICI Prudential Pension Funds Management
Company Limited
Sponsor company ICICI Prudential Life Insurance Company Limited
Associates and group
companies
- Holding company of
sponsor
ICICI Bank Limited
The following represents significant transactions between the Scheme and its related
parties.
(In `)
Name of
related party
Nature of
transaction
Transactions for the
year ended
Amount recoverable/
(payable)
March 31,
2015
March 31,
2014
At March
31, 2015
At March
31, 2014
ICICI Prudential
Pension Funds
Management
Company
Limited
Investment
management
fees
90,526 124,551 (3,466) (35,728)
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
Aggregate investments made by the scheme in the associates and group companies are
as follows:
(In `)
Period Security Asset
type Cost Market value
At March 31,
2015 ICICI Bank Limited Equity 6,966,089 8,771,216
At March 31,
2014 ICICI Bank Limited Equity 4,075,136 4,713,759
2.4 Investment management fees
The Investment Management Fees is charged on closing funds under management on
daily basis for all the schemes. In terms of the PFRDA’s letter no. PFRDA/6/PFM/9/2 dated
July 31, 2014, the Company has started charging investment management fee of 0.01%
per annum, with effect from August 01, 2014. The investment management fee charged
upto July 31, 2014 was 0.25% per annum.
2.5 Aggregate value of purchase and sale with percentage to average daily
net assets
Aggregate value of purchase and sale with percentage to average daily net assets is as
follows:
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 338,882,722 165,709,311
% to average net assets 307.1% 373.7%
Aggregate value of purchase and sale (excluding liquid mutual fund)* with percentage to
average daily net assets is as follows:
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 63,528,281 66,717,417
% to average net assets 57.6% 150.5%
*liquid mutual fund investments are held for day to day cash management, hence excluded.
2.6 Investments falling under each major industry group
The total value of investments falling under each major industry group (which constitutes
not less than 5% of the total investment in the major classification of the financials) are
disclosed as under:
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
Investment
classification
At March 31, 2015 At March 31, 2014
Market
value (In `)
% of
investment
class
Market
value (In `)
% of
investment
class
Mutual funds 589,250 100.0% 450,134 100.0%
Mutual funds 589,250 100.0% 450,134 100.0%
Equity shares 141,249,959 100.0% 73,288,166 100.0%
Monetary intermediation
of commercial banks,
saving banks
33,897,225 24.0% 15,187,829 20.7%
Writing ,modifying,
testing of computer
program to meet the
needs
23,254,010 16.5% 11,785,021 16.0%
Activities of specialized
institutions granting
credit for house
purchases that also take
deposits
9,926,957 7.0% 4,520,265 6.2%
Manufacture of allopathic
pharmaceutical
preparations
9,865,715 7.0% 3,850,787 5.3%
Manufacture of
cigarettes, cigarette
tobacco
8,732,780 6.2% 6,312,487 8.6%
Manufacture of refined
petroleum products 6,529,530 4.6% 4,754,271 6.5%
Others 49,043,742 34.7% 26,877,506 36.7%
Net current assets (538,461) 100.0% 112,215 100.0%
Net assets value 141,300,748 100.0% 73,850,515 100.0%
2.7 Statement of portfolio holding as on March 31, 2015
Security name Units Acquisition
cost (In `) Market
value (In `)
Equity securities 112,176,483 141,249,959
Infosys Limited 4,789 7,947,817 10,623,678
Housing Development Finance
Corporation Limited 7,545 6,889,983 9,926,957
HDFC Bank Limited 9,318 7,111,898 9,529,519
ICICI Bank Limited 27,801 6,966,089 8,771,216
ITC Limited 26,800 8,917,440 8,732,780
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
Security name Units Acquisition
cost (In `) Market
value (In `)
Larsen & Toubro Limited 3,923 4,660,563 6,746,187
Reliance Industries Limited 7,905 7,127,829 6,529,530
Tata Consultancy Services Limited 2,453 4,968,232 6,264,839
Tata Motors Limited 8,621 3,352,521 4,743,274
Axis Bank Limited 8,148 2,680,037 4,564,510
State Bank Of India 14,829 3,012,658 3,960,084
Sun Pharmaceuticals Industries Limited 3,611 2,148,899 3,697,303
Hindustan Unilever Limited 3,399 2,093,452 2,969,196
Kotak Mahindra Bank Limited 2,063 1,776,092 2,709,235
Oil & Natural Gas Corporation Limited 8,607 2,826,298 2,636,754
Mahindra & Mahindra Limited 2,212 2,282,795 2,627,414
Bharti Airtel Limited 6,640 2,260,381 2,611,512
HCL Technologies Limited 2,600 1,584,265 2,549,040
Maruti Suzuki India Limited 635 1,283,087 2,347,817
Lupin Limited 1,150 1,135,226 2,309,660
Coal India Limited 6,166 2,103,759 2,237,641
Dr. Reddys Laboratories Limited 609 1,533,047 2,124,649
Wipro Limited 3,151 1,662,432 1,981,506
IndusInd Bank Limited 2,074 1,090,524 1,837,564
Tech Mahindra Limited 2,914 1,491,723 1,834,946
Asian Paints Limited 2,172 1,193,734 1,762,144
Cipla Limited 2,434 1,077,790 1,734,103
Power Grid Corporation Of India Limited 10,567 1,204,632 1,534,857
Hero Motocorp Limited 576 1,257,794 1,520,525
NTPC Limited 9,905 1,399,840 1,454,549
Ultratech Cement Limited 491 1,039,128 1,413,049
Bajaj Auto Limited 644 1,312,996 1,298,690
Yes Bank Limited 1,560 1,271,580 1,272,570
Grasim Industries Limited 305 925,611 1,104,817
IDFC Limited 6,382 833,412 1,065,475
Bharat Heavy Electricals Limited 4,337 905,954 1,020,713
Tata Steel Limited 3,198 1,206,442 1,012,967
Bharat Petroleum Corporation Limited 1,240 573,945 1,005,392
Sesa Sterlite Limited 5,280 1,059,444 1,000,560
Idea Cellular Limited 5,362 959,912 986,608
Ambuja Cements Limited 3,691 724,914 942,312
Zee Entertainment Enterprises Limited 2,623 832,890 896,410
GAIL (India) Limited 2,230 822,076 864,794
Hindalco Industries Limited 6,172 765,449 796,188
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
Security name Units Acquisition
cost (In `) Market
value (In `)
Bank of Baroda 4,506 692,091 736,731
ACC Limited 449 589,020 701,675
Tata Power Company Limited 8,688 699,174 669,845
Cairn India Limited 2,725 826,303 582,741
Punjab National Bank 3,572 567,638 515,797
NMDC Limited 3,803 527,671 489,636
Mutual Funds 589,187 589,250
IDFC Cash fund – Direct Plan - Growth 347 589,187 589,250
Total 112,765,670 141,839,209
Statement of portfolio holding as on March 31, 2014
Security name Units Acquisition
cost (In `) Market
value (In `)
Equity securities 65,484,731 73,288,166
ITC Limited 17,890 5,724,408 6,312,487
Infosys Limited 1,583 4,791,384 5,196,672
Reliance Industries Limited 5,108 4,358,138 4,754,271
ICICI Bank Limited 3,786 4,075,136 4,713,759
HDFC Bank Limited 6,078 4,063,252 4,551,206
Housing Development Finance
Corporation 5,114 4,119,274 4,520,265
Larsen & Toubro Limited 2,672 2,581,451 3,398,517
Tata Consultancy Services Limited 1,557 2,747,955 3,321,315
Tata Motors Limited 5,893 1,947,377 2,349,244
State Bank Of India 1,014 1,676,077 1,944,548
ONGC Corporation Limited 5,802 1,763,727 1,849,097
Axis Bank Limited 1,018 1,304,753 1,486,789
Mahindra & Mahindra Limited 1,510 1,378,726 1,480,857
Sun Pharma Limited 2,468 1,197,337 1,418,483
Hindustan Unilever Limited 2,320 1,247,291 1,404,876
Bharti Airtel Limited 3,955 1,265,281 1,256,701
HCL Technologies Limited 877 876,946 1,219,644
Wipro Limited 2,143 1,079,861 1,164,078
Dr. Reddy Laboratories 416 941,459 1,066,582
Kotak Mahindra Bank Limited 1,249 871,967 975,531
Bajaj Auto Limited 440 851,158 916,784
Hero Motocorp Limited 394 756,197 896,271
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
Security name Units Acquisition
cost (In `) Market
value (In `)
Tech Mahindra Limited 492 904,945 883,312
Tata Steel Limited 2,186 732,552 861,175
Maruti Suzuki India Limited 434 655,924 855,740
Asian Paints Limited 1,485 702,381 813,706
NTPC Limited 6,752 948,870 809,565
Sesa Sterlite Limited 4,053 731,606 764,193
Power Grid Corporation Of India Limited 7,223 738,560 758,415
Lupin Limited 783 635,315 730,656
Ultratech Cement Limited 334 611,321 730,441
Indusind Bank 1,397 612,614 701,084
United Spirits Limited 252 671,202 667,157
Cairn India Limited 1,938 599,270 645,354
Cipla Limited 1,659 643,744 635,065
Grasim Industries Limited 208 585,331 600,714
Coal India Limited 2,071 549,643 598,001
Hindalco Industries Limited 4,218 449,132 597,902
GAIL (India) Limited 1,473 495,964 553,922
Tata Power Limited 5,990 463,304 510,049
Bharat Heavy Electricals Limited 2,590 477,137 507,770
Ambuja Cements Limited 2,510 449,148 507,522
Infrastructure Development Finance
Limited 4,102 477,171 501,470
Bank of Baroda 628 415,703 452,631
Associated Cement Companies Limited 307 376,921 429,662
Bharat Petroleum Corp Limited 848 318,194 390,122
Punjab National Bank 487 344,863 362,279
NMDC Limited 2,599 334,875 361,911
Jindal Steel & Power Limited 1,208 366,093 353,280
DLF Limited 1,463 297,589 258,146
Idea Cellular Limited 1,699 276,204 233,528
Tata Power Limited - Rights Issue 613 - 15,417
Mutual Funds 450,000 450,134
IDFC Cash fund – Direct Plan - Growth 288.96 450,000 450,134
Total 6,54,84,731 73,738,300
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
2.8 Key statistics
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
1. NAV per unit (`)I
(based on published NAV)
Open 13.1615 10.8650
High 17.9099 13.1615
Low 13.069 10.2411
End
16.9337 13.1615
2. Closing Assets Under Management (` in Lakhs)
End 1,413.01 738.51
Average daily net assets (AAUM)II
1,103.40 443.40
3. Gross income as % of AAUMIII
2.56% 3.35%
4. Expense ratio
a. Total expense as % of AAUM (scheme wise)IV
0.0904% 0.2893%
b. Management fee as % of AAUM (scheme wise) 0.0820% 0.2809%
5. Net income as % of AAUMV
2.47% 3.06%
6. Portfolio turnover ratioVI
8.23% 34.48%
7. Total dividend per unit distributed during the period - -
8. Returns: (%)
a. Last one year 28.66% 21.14%
Benchmark 28.33% 19.33%
b. Since inception 69.34% 31.62%
Benchmark 71.89% 33.94%
c. Compound annualised yield (%)VII
Last 1 year 28.40% 21.14%
Last 3 year 19.59% 6.03%
Last 5 year 11.03% NA
Since launch of the scheme 10.62% 6.74%
Launch Date January 11, 2010
I. NAV = (Market value of investment held by scheme + value of current assets - value of
current liability and provisions, if any)/(no. of units at the valuation date (before creation/
redemption of units)
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
The last published NAV in FY 2014 was on March 28, 2014 of ₹ 13.1615 since it was the
last business day of the financial year. However, since equity markets were operational
on March 31, 2014, it was directed by NPS trust to value its investments on prices of
March 31, 2014 to reflect the correct AUM as on Balance Sheet date. Accordingly, the
NAV computed on March 31, 2014 was ₹ 13.1774. Since March 31, 2014 was a non
business day, no transactions were conducted by the subscribers and the NAV
computed for March 31, 2014 was for disclosure purpose only.
II. AAUM = Average daily net assets
III. Gross income = Income includes Interest income, Dividend income and Net
profit/(loss) on sale of investments
IV. Total expenses = Expenses include management fees, custody fees, trustee bank
charges but excludes unrealised loss
V. Net income = Gross income less Total expenses (excludes unrealised gain/loss)
VI. Portfolio turnover = Lower of sales or purchase divided by the average AUM for the
period. Investments in liquid mutual fund is excluded from the turnover as the same is
primarily for liquidity management.
VII. Compounded annualised yield is to be calculated based on following formula:
= ((1+ cumulative return)^n) -1 (where n=365/no. of days)
ICICI Prudential Pension Funds Management Company Limited -
Scheme E Tier II
2.9 Previous year comparatives
Previous year amounts have been regrouped and reclassified wherever necessary to
conform to current year’s presentation in line with the PFRDA (Preparation of financial
statements and Auditor’s report of Schemes under National Pension System) Guidelines
- 2012.
For Borkar & Muzumdar
Chartered Accountants
Firm Registration No. 101569W
For and on behalf of the Board of Directors
of ICICI Prudential Pension Funds
Management Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Meghana Baji Vishal Mehta
Chief Executive Officer Company Secretary
Date : April 24, 2015
Place : Mumbai
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ICICI Prudential Pension Funds Management
Company Limited - Scheme C Tier II
Financial Statements together with Auditor’s Report for
the year ended March 31, 2015
ICICI Prudential Pension Funds Management
Company Limited - Scheme C Tier II
Financial Statements together with Auditor’s
Report
For the year ended March 31, 2015
Contents
Auditor’s Report
Balance Sheet
Revenue Account
Accounting Policies and Notes to Accounts
INDEPENDENT AUDITORS' REPORT To, The Trustees, National Pension System Trust Report on Financial Statements 1 We have audited the accompanying financial statements of NPS Trust A/c ICICI Prudential Pension
Funds Management Company Limited, Scheme C - Tier II (Scheme) under the National Pension System Trust (NPS Trust) managed by ICICI Prudential Pension Funds Management Company Limited (‘PFM’ or the ‘Company) which comprise of the Balance Sheet as at March 31, 2015, and the Revenue Account for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements 2 Management of the PFM, in accordance with the Pension Fund Regulatory and Development
Authority (PFRDA) Guidelines and the Investment Management Agreement (IMA) with the NPS Trust, is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Scheme in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act 2013 (the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial statements are also approved by the NPS Trust on the recommendation of the Board of Directors of the PFM.
Auditor’s Responsibility 3 4
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
5 An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the PFM’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.
6 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements. Opinion 7 In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required by PFRDA (Preparation of Financial Statements and Auditors Report of Schemes under National Pension System) Guidelines 2012 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a)
in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2015; and
(b)
in the case of the Revenue Account, of the surplus of the Scheme for the year ended on that date;
Report on Other Legal And Regulatory Requirements 8 As required by the PFRDA (Preparation of Financial Statements and Auditors Report of Schemes
under National Pension System) Guidelines 2012, as amended, and section 143(3) of the Act we report that:
a) We have obtained all information and explanations which to the best of our knowledge and belief
were necessary for the purpose of the audit. b) The Balance Sheet and Revenue account of the Scheme are in agreement with the books of account
of the Scheme. c) In our opinion proper books of account of the Scheme, as required by the PFRDA has been
maintained by the PFM as far as appears from our examination of those books. d) All transactions expenses in excess of the limits contractually agreed to / approved by the Authority
are borne by the Pension Fund (if any) and are not charged to the NAV of the Scheme. e) In our opinion the Balance Sheet and Revenue Account of the Scheme dealt with by this report
comply with the “PFRDA (Preparation of Financial Statements and Auditor’s Report of Scheme under National Pension System) Guidelines-2012” and the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
9 We further certify that
a) Investments have been valued in accordance with the guidelines issued by the Authority. b) Transaction and claims/fee raised by different entities are in accordance with the prescribed fee. For Borkar & Muzumdar
Chartered Accountants Firm Registration No. 101569W B M Agarwal Partner M No.: 33254 Place: Mumbai Date: 24th April, 2015
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME C TIER II
BALANCE SHEET AT MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Sources of funds
Unit capital 1 78,610,344 56,468,547
Reserves and surplus 2 59,882,691 29,420,698
Current liabilities and provisions 3 33,558 56,819
Borrowings - -
Total 138,526,593 85,946,064
Application of funds
Investments (long term and short term) 4 134,004,515 82,635,211
Deposits 5 - -
Other current assets 6 4,522,078 3,310,853
Total 138,526,593 85,946,064
(a) Net asset as per Balance Sheet (Schedule 4+5+6 -3) 138,493,035 85,889,245
(b) Number of units outstanding 7,861,034 5,646,855
(c) NAV per unit (a)/(b) (`) (Refer note 2.8 (II)) 17.6177 15.2101
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ScheduleParticulars
Scheme C Tier II
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME C TIER II
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Income from investments
Interest income 9,541,305 5,892,078
Dividend income - -
Net profit/(loss) on sale/redemption of investments (other than inter-
scheme transfer/sale) 830,878 309,466
Net profit/(loss) on inter-scheme transfer/sale of investments 69,505 349
Unrealised gain on appreciation in investments 6,315,265 275,222
Total income (A) Total
income (A)
16,756,953 6,477,115
Expenses and losses
Unrealised losses in value of investments 398,969 2,283,941
Provision for outstanding accrued income considered doubtful - -
Provision for doubtful deposits and current assets - -
Management fees (including service tax) [Refer Note 2.4] 96,210 184,972
Trusteeship/regulatory fees - -
Publicity expenses - -
Audit fees - -
Custodian fees 8,481 5,097
Trustee bank fees - 34
CRA fees 17,985 14,572
Less : Amount recovered on sale of units on account of CRA
charges (17,985) (14,572)
Total expenditure (B) 503,660 2,474,044
Net income/(expenditure) for the year (A-B) appropriated
to Balance Sheet16,253,293 4,003,071
Balance at the beginning of the year 11,234,928 7,231,857
Balance at the end of the year carried to Balance Sheet 27,488,221 11,234,928
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached.
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ParticularsScheme C Tier II
Schedule
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME C TIER II
Schedules forming part of the financial statements
Schedule 1: Unit capital (In `)
March 31, 2015 March 31, 2014
Initial capital - -
Unit capital
Opening balance 56,468,547 36,175,188
Additions during the year 25,725,647 23,464,558
Deduction during the year (3,583,850) (3,171,199)
Closing balance 78,610,344 56,468,547
Number of units of face value ` 10 7,861,034 5,646,855
#VALUE!
Schedule 2: Reserves and surplus (In `)
March 31, 2015 March 31, 2014
Unit premium reserve
Opening balance 18,185,770 8,450,502
Additions during the year 16,662,571 23,464,557
Deduction during the year (2,453,871) (3,171,199)
Closing balance 32,394,470 18,185,770
Surplus/(deficit) in Revenue account
Opening balance 11,234,928 7,231,857
Additions during the year 16,253,293 4,003,071
Deduction during the year - -
Closing balance 27,488,221 11,234,928
General reserve* - -
Appropriation account* - -
Total 59,882,691 29,420,698
* The balances have been nil throughout the year
Schedule 3: Current liabilities and provisions (In `)
March 31, 2015 March 31, 2014
Current liabilities
Sundry creditors 5,759 50,833
Contracts for purchase of investments - -
Interest received in advance - -
Unclaimed distributed income - -
Pending creation of units - -
Unit redemption payable 27,799 5,986
Provisions - -
Total 33,558 56,819
Scheme C Tier II
Scheme C Tier II
Scheme C Tier IIParticulars
Particulars
Particulars
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME C TIER II
Schedules forming part of the financial statements
Schedule 4: Investments (In `)
March 31, 2015 March 31, 2014
Equity shares - -
Preference shares - -
Debentures and bonds 131,856,175 81,494,872
Central and state government securities (including treasury bills ) - -
Commercial Paper - -
Others - Mutual funds 2,148,340 1,140,339
Total 134,004,515 82,635,211
Schedule 5: Deposits
(In `)
March 31, 2015 March 31, 2014
Deposits with scheduled banks - -
Others - -
Total - -
Schedule 6: Other current assets
(In `)
March 31, 2015 March 31, 2014
Balances with banks in current/saving account 371,284 195,828
Cash on hand - -
Sundry debtors - -
Contracts for sale of investments - -
Outstanding and accrued income 4,150,794 3,115,025
Advance, deposits etc. - -
Shares/debentures/others application money pending allotment - -
Others - Dividend receivable - -
Total 4,522,078 3,310,853
ParticularsScheme C Tier II
ParticularsScheme C Tier II
ParticularsScheme C Tier II
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
Schedule 7
Significant accounting policies and notes to accounts for year ended March
31, 2015
1.1 Background
ICICI Prudential Pension Funds Management Company Limited (‘the Company’) is
appointed as a Pension Fund Manager (‘PFM’) by the National Pension System Trust
(‘NPS’). The Company has entered into an Investment Management Agreement (‘IMA’)
with NPS. The Pension Fund Regulatory and Development Authority (‘PFRDA’)
guidelines require each PFM to manage subscribers’ funds made available to it by the
Trustee bank along with the data made available by the Central Recordkeeping Agency
(‘CRA’) at a consolidated level. The Company makes investments as per the IMA, various
other circulars/guidelines issued by the PFRDA in this context from time to time and the
scheme wise flow of funds.
The Company manages six separate schemes under the two tiered structure (Tier I and
II) prescribed under the NPS. The schemes are classified as Scheme E, C and G based on
the underlying asset class prescribed under the NPS as follows:
Scheme E – Equity market instruments
Scheme C – Credit risk bearing fixed income instruments
Scheme G – Government securities
1.2 Basis of preparation
The financial statements have been prepared in accordance with the PFRDA (Preparation
of financial statements and Auditor’s report of Schemes under National Pension System)
Guidelines – 2012 (‘Guidelines’), Accounting Standards (‘AS’) notified under section 133
of the Companies Act, 2013, read together with paragraph 7 of the Companies
(Accounts) Rules 2014 to the extent made applicable by the Guidelines and generally
accepted accounting principles. The Guidelines specifically exempt the schemes from
the applicability of AS 3 (Cash Flow Statement) and AS 17 (Segmental Reporting). These
financial statements have been prepared on an accrual basis, except as otherwise stated.
The financials have been prepared for Scheme C Tier II being managed by the Company.
1.3 Investments
Purchase and sale of securities are accounted on trade date. Investments are reconciled
with the custodian records on daily basis. The holding cost of investments is determined
by the weighted average cost method and the cost does not include brokerage and
other transaction charges.
Valuation of investments
All investments are marked to market and are carried in the Balance Sheet at the market
value as on Balance Sheet date/date of determination/date of valuation. Unrealised
gain/(loss), if any, is transferred to Revenue account.
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
As per directive received from NPS, the valuation of investments is carried out by Stock
Holding Corporation of India Limited (SHCIL). The Investment valuation methodology
adopted by SHCIL is as follows:
Debt securities other than Government securities with a residual maturity over 60 days
are valued at weighted average traded price on that day. When such securities are not
traded on a particular day, they are valued on a yield to maturity basis, by using spreads
over risk free benchmark yield obtained from agency(ies) entrusted for the said purpose
by Association of Mutual Funds in India (AMFI) to arrive at the yield for pricing the
security.
Debt securities other than Government securities with a residual maturity upto 60 days
are valued at weighted average traded price on that day. When such securities are not
traded on a day, they are valued at last valuation price plus the difference between the
redemption value and last valuation price, spread uniformly over the remaining maturity
period of the instrument. In case of floating rate securities with floor and caps on coupon
rate and residual maturity of upto 60 days then those shall be valued on amortisation
basis taking the coupon rate as floor.
Mutual fund units are valued based on the net asset values of the preceding day of the
valuation date.
Income earned on investments
Interest income on investments is recognised on daily accrual basis. In respect of
investments purchased, interest paid for the period from the last interest due date upto
the date of purchase is debited to interest recoverable account and not included in cost
of purchase. Similarly interest received at the time of sale for the period from the last
interest due date upto the date of sale is credited to interest recoverable account and not
included in sale value. Accretion of discount/amortization of premium relating to debt
securities is recognised over the holding/maturity period on a straight-line basis.
Profit or loss on sale of debt securities is the difference between the sale consideration
net of expenses, if any and the weighted average amortised cost as on the date of sale.
Profit or loss on sale of mutual fund units is the difference between the sale
consideration net of expenses, if any and the weighted average book cost.
Non-performing assets (NPA)
An investment is regarded as NPA, if interest/principal or both amount has not been
received or has remained outstanding for one quarter from the day such
income/installment has fallen due. Further the Company also classifies following assets
as impaired.
1. In case of investments, securities where the certificates, if any, are not traceable for a
protracted period
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
2. In case of assets, other than investments, where in the opinion of the Board of
Directors, there is a substantial dimunition in value.
Where income receivable on investments has accrued but has not been received for one
quarter beyond the due date, provision shall be made by debiting to the Revenue
account for the income so accrued and no further accrual of income shall be made in
respect of such investments.
Income on NPAs shall be recognised on cash basis.
1.4 Units reconciliation
The subscribers’ units as per Investment management system are reconciled with
Central Recordkeeping Agency (CRA) records on daily basis.
1.5 Investment management fees
Investment management fees are recognised on daily accrual basis on closing Asset
under management (AUM) in accordance with IMA. The investment management fee is
inclusive of brokerage but excludes custodian charges and applicable taxes, if any.
1.6 Other expenses
Custody charges are recognised on daily accrual basis in accordance with IMA. Trustee
bank charges were recognised when they were debited by the trustee bank on a
quarterly basis. The trustee bank has discontinued levying charges with effect from July
01, 2013.
Notes to accounts
2.1 Contingent liabilities
(In `)
Particulars At March 31,
2015
At March 31,
2014
Other commitments Nil Nil
2.2 Investments
All investments and deposits under the scheme are performing assets, hence no
provisions for doubtful deposits, debts and for doubtful outstandings and accrued
income are required to be made. All the investments of the Schemes are in the name of
the NPS Trust.
Aggregate value of non-traded investments as on March 31, 2015 is ` 52,600,485 (March
31, 2014: ` 59,533,455). Non traded securities as per the PFRDA (Preparation of financial
statements and Auditor’s report of Schemes under National Pension System) Guidelines
– 2012 are those securities that are not traded on any stock exchange for a period of 30
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
days prior to the valuation date. They are valued at yield to maturity basis, by using
spreads over the benchmark rate.
2.3 Details of transactions with sponsor and its related parties
Related parties and nature of relationship.
Nature of relationship Name of the related party
Pension fund manager ICICI Prudential Pension Funds Management
Company Limited
Sponsor company ICICI Prudential Life Insurance Company Limited
Associates and group
companies
- Holding company of
sponsor
ICICI Bank Limited
The following represents significant transactions between the Scheme and its related
parties.
(In `)
Name of
related party
Nature of
transaction
Transactions for the
year ended
Amount recoverable/
(payable)
March 31,
2015
March 31,
2014
At March
31, 2015
At March
31, 2014
ICICI Prudential
Pension Funds
Management
Company
Limited
Investment
management
fees
96,210
184,972
(3,327)
(47,717)
Aggregate investments made by the scheme in the associates and group companies at
March 31, 2015 is Nil (March 31, 2014: Nil).
2.4 Investment management fees
The Investment Management Fees is charged on closing funds under management on
daily basis for all the schemes. In terms of the PFRDA’s letter no. PFRDA/6/PFM/9/2 dated
July 31, 2014, the Company has started charging investment management fee of 0.01%
per annum, with effect from August 01, 2014. The investment management fee charged
upto July 31, 2014 was 0.25% per annum.
2.5 Aggregate value of purchase and sale with percentage to average daily
net assets
Aggregate value of purchase and sale with percentage to average daily net assets is as
follows:
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 1,796,866,101 585,074,673
% to average daily net assets 1628.2% 888.5%
Aggregate value of purchase and sale (excluding liquid mutual fund)* with percentage to
average daily net assets is as follows:
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 107,893,443 69,261,902
% to average net assets 97.8% 105.2%
*liquid mutual fund investments are held for day to day cash management, hence excluded.
2.6 Investments falling under each major industry group
The total value of investments falling under each major industry group (which constitutes
not less than 5% of the total investment in the major classification of the financials) is
disclosed as under:
Investment
classification
At March 31, 2015 At March 31, 2014
Market
value (In `)
% of
investment
class
Market
value (In `)
% of
investment
class
Mutual funds 2,148,340 100.0% 1,140,339 100.0%
Mutual funds 2,148,340 100.0% 1,140,339 100.0%
Non-convertible
debenture 131,856,175 100.0% 81,494,872 100.0%
Other credit granting 31,339,133 23.8% 15,560,851 19.1%
Other financial service
activities, except insurance
& pension funding
14,462,589 11.0% 4,521,159 5.5%
Activities of specialized
institutions granting credit
for house purchases that
also take deposits
11,470,047 8.7% 16,111,635 19.8%
Activities of holding
companies 10,731,200 8.1% 8,029,260 9.9%
Monetary intermediation of
commercial banks, savings
banks
10,385,360 7.9% - -
Transmission of electric
energy 10,380,690 7.9% 4,767,720 5.9%
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
Investment
classification
At March 31, 2015 At March 31, 2014
Market
value (In `)
% of
investment
class
Market
value (In `)
% of
investment
class
Other civil engineering
projects 10,010,570 7.6% - -
Activities of providing
internet access by operator
of the wired infrastructure
9,245,151 7.0% 13,558,622 16.6%
Activities of commission
agents, brokers dealing in
wholesale trade of
agricultural raw material,
live animals, food,
beverages, intoxicants and
textiles
8,673,656 6.6% 5,076,420 6.2%
Support activities for
petroleum and natural gas
mining
7,940,933 6.0% - -
Manufacture of Aluminium
from alumina and by other
methods and products of
aluminium and alloys
7,216,846 5.4% 6,818,476 8.4%
Electric power generation
by coal based thermal
power plants
- - 7,050,729 8.6%
Net current assets 4,488,520 100.0% 3,254,033 100.0%
Net asset value 138,493,035 100.0% 85,889,245 100.0%
2.7 Statement of portfolio holding as on March 31, 2015
Security name Units Acquisition
cost (In `)
Market
value (In `)
Mutual Funds 2,148,083 2,148,340
IDFC Cash fund - Direct Plan –Growth 1,264 2,148,083 2,148,340
Non convertible debentures 125,954,601 131,856,175
9.67% Tata Sons Limited (September 13,
2022) 100,000 10,262,358 10,731,200
9.38% IDFC (September 12, 2024) 100,000 10,000,000 10,693,490
8.85% Axis Bank Ltd (December 05, 2024) 100,000 10,000,000 10,385,360
8.95% Infotel Broadband Services Limited
(September 15, 2020) 90,000 8,703,929 9,245,151
9.95% Food Corporation of India (March 07, 80,000 8,048,000 8,673,656
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
Security name Units Acquisition
cost (In `)
Market
value (In `)
2022)
8.65% Power Finance Corporation Limited
(December 28, 2024) 80,000 8,000,000 8,183,512
10.08% IOT Utkal Energy Services Limited
(February 20, 2025) 70,000 7,399,504 7,940,933
9.098 % L&T IRCL (April 15, 2022) 75,000 7,500,000 7,933,500
8.79% Mahindra & Mahindra Financial
Services Limited (January 23, 2025) 80,000 8,000,000 7,811,408
8.75% IRFC (November 29, 2026) 70,000 6,821,193 7,349,286
9.55% Hindalco Industries Limited (April 25,
2022) 70,000 7,028,210 7,216,846
8.93% Power Grid Corporation (October 20,
2029) 50,000 5,000,000 5,279,900
9.90% HDFC (December 29, 2018) 50,000 5,001,000 5,253,550
8.87% Rural Electrification Corporation
Limited (March 08, 2020) 50,000 4,912,702 5,112,845
8.73% Power Grid Corporation (October 11,
2021) 50,000 4,769,105 5,100,790
10.75% Shriram Transport Finance
Company Limited (October 24, 2018) 30,000 3,000,000 3,117,963
9.18% HDFC (February 28, 2018) 30,000 2,945,400 3,069,057
9.25% LIC Housing Finance Limited
(January 01, 2023) 20,000 2,075,700 2,104,576
9.098 % L&T IRCL (April 15, 2020) 20,000 2,000,000 2,077,070
10.00% Shriram Transport Finance
Company Limited (July 15, 2019) 20,000 1,987,400 2,031,714
9.51% LIC Housing Finance Limited (July
24, 2019) 10,000 1,000,000 1,042,864
10.25% Shriram Transport Finance
Company Limited (April 18, 2015) 10,000 1,003,000 1,000,268
9.75% Shriram Transport Finance Company
Limited (June 01, 2015) 5,000 497,100 501,236
Total 128,102,683 134,004,515
Statement of portfolio holding as on March 31, 2014
Security name Units Acquisition
cost (In `)
Market
value (In `)
Mutual Funds 1,140,000 1,140,339
IDFC Cash fund - Direct Plan –Growth 732.03 1,140,000 1,140,339
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
Security name Units Acquisition
cost (In `)
Market
value (In `)
Non convertible debentures 81,509,678 81,494,872
8.95% Infotel Broadband Services Limited
(September 15, 2020) 140,000 13,545,864 13,558,622
9.80% LIC Housing Finance Limited (October
22, 2017) 80,000 8,005,400 8,085,896
9.80 % Talwandi Sabo Power Limited
(December 09, 2023). 70,000 6,959,200 7,050,729
9.55% Hindalco Industries Limited (April 25,
2022) 70,000 7,028,210 6,818,476
8.75% IRFC (November 29, 2026) 70,000 6,821,193 6,684,132
9.95% Food Corporation of India Limited
(March 07, 2022) 50,000 4,997,000 5,076,420
9.90% HDFC (December 29, 2018) 50,000 5,001,000 5,061,235
9.70% Tata Sons Limited (July 25, 2022) 50,000 5,001,000 5,021,610
8.87% Rural Electrification Corporation
Limited (March 08, 2020) 50,000 4,912,702 4,838,155
8.73% Power Grid Corporation (October 11,
2021) 50,000 4,769,105 4,767,720
9.81% Power Finance Corporation Limited
(October 07, 2018) 40,000 4,022,904 4,038,564
10.75% Shriram Transport Finance Company
Limited (October 24, 2018) 30,000 3,000,000 3,020,307
9.67% Tata Sons Limited (September 13,
2022) 30,000 3,000,600 3,007,650
9.18% HDFC (February 12, 2018) 30,000 2,945,400 2,964,504
10.25% Shriram Transport Finance Company
Limited (April 18, 2015) 10,000 1,003,000 1,002,267
9.75% Shriram Transport Finance Company
Limited (June 01, 2015) 5,000 497,100 498,585
Total 82,649,678 82,635,211
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
2.8 Key statistics
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
1. NAV per unit (`)I
(based on published NAV)
Open 15.1991 14.3250
High 17.6177 15.1991
Low 15.1259 13.8559
End
17.6177 15.1991
2. Closing Assets Under Management (` in Lakhs)
End 1,384.93 858.89
Average daily net assets (AAUM)II
1,103.58 658.49
3. Gross income as % of AAUMIII
9.46% 9.42%
4. Expense ratio
a. Total expense as % of AAUM (scheme wise)IV
0.0949% 0.2887%
b. Management fee as % of AAUM (scheme wise) 0.0872% 0.2809%
5. Net income as % of AAUMV
9.37% 9.13%
6. Portfolio turnover ratioVI
29.17% 25.76%
7. Total dividend per unit distributed during the period - -
8. Returns: (%)
a. Last one year 15.91% 6.10%
Benchmark 15.08% 5.36%
b. Since inception 76.18% 51.99%
Benchmark 58.54% 37.77%
c. Compound annualised yield (%)VII
Last 1 year 15.77% 6.10%
Last 3 year 11.78% 10.63%
Last 5 year 11.67% NA
Since launch of the scheme 11.47% 10.46%
Launch Date January 12, 2010
I. NAV = (Market value of investment held by scheme + value of current assets - value of
current liability and provisions, if any)/(no. of units at the valuation date (before creation/
redemption of units)
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
The last published NAV in FY 2014 was on March 28, 2014 of ₹ 15.1991 since it was the
last business day of the financial year. However, since equity markets were operational
on March 31, 2014, it was directed by NPS trust to value its investments on prices of
March 31, 2014 to reflect the correct AUM as on Balance Sheet date. Accordingly, the
NAV computed on March 31, 2014 was ₹ 15.2101. Since March 31, 2014 was a non
business day, no transactions were conducted by the subscribers and the NAV
computed for March 31, 2014 was for disclosure purpose only.
II. AAUM = Average daily net assets
III. Gross income = Income includes Interest income, Dividend income and Net
profit/(loss) on sale of investments
IV. Total expenses = Expenses include management fees, custody fees, trustee bank
charges but excludes unrealised loss
V. Net income = Gross income less Total expenses (excludes unrealised gain/loss)
VI. Portfolio turnover = Lower of sales or purchase divided by the average AUM for the
period. Investments in liquid mutual fund is excluded from the turnover as the same is
primarily for liquidity management.
VII. Compounded annualised yield is to be calculated based on following formula:
= ((1+ cumulative return)^n) -1 (where n=365/no. of days)
ICICI Prudential Pension Funds Management Company Limited –
Scheme C Tier II
2.9 Previous year comparatives
Previous year amounts have been regrouped and reclassified wherever necessary to
conform to current year’s presentation in line with the PFRDA (Preparation of financial
statements and Auditor’s report of Schemes under National Pension System) Guidelines
- 2012.
For Borkar & Muzumdar
Chartered Accountants
Firm Registration No. 101569W
For and on behalf of the Board of Directors
of ICICI Prudential Pension Funds
Management Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Meghana Baji Vishal Mehta
Chief Executive Officer Company Secretary
Date : April 24, 2015
Place : Mumbai
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
ICICI Prudential Pension Funds Management
Company Limited - Scheme G Tier II
Financial Statements together with Auditor’s Report for
the year ended March 31, 2015
ICICI Prudential Pension Funds Management
Company Limited - Scheme G Tier II
Financial Statements together with Auditor’s
Report
For the year ended March 31, 2015
Contents
Auditor’s Report
Balance Sheet
Revenue Account
Accounting Policies and Notes to Accounts
INDEPENDENT AUDITORS' REPORT To, The Trustees, National Pension System Trust Report on Financial Statements 1 We have audited the accompanying financial statements of NPS Trust A/c ICICI Prudential Pension
Funds Management Company Limited, Scheme G - Tier II (Scheme) under the National Pension System Trust (NPS Trust) managed by ICICI Prudential Pension Funds Management Company Limited (‘PFM’ or the ‘Company) which comprise of the Balance Sheet as at March 31, 2015, and the Revenue Account for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements 2 Management of the PFM, in accordance with the Pension Fund Regulatory and Development
Authority (PFRDA) Guidelines and the Investment Management Agreement (IMA) with the NPS Trust, is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Scheme in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act 2013 (the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial statements are also approved by the NPS Trust on the recommendation of the Board of Directors of the PFM.
Auditor’s Responsibility 3 4
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
5 An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the PFM’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.
6 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the financial statements. Opinion 7 In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the information required by PFRDA (Preparation of Financial Statements and Auditors Report of Schemes under National Pension System) Guidelines 2012 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a)
in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2015; and
(b)
in the case of the Revenue Account, of the surplus of the Scheme for the year ended on that date;
Report on Other Legal And Regulatory Requirements 8 As required by the PFRDA (Preparation of Financial Statements and Auditors Report of Schemes
under National Pension System) Guidelines 2012, as amended, and section 143(3) of the Act we report that:
a) We have obtained all information and explanations which to the best of our knowledge and belief
were necessary for the purpose of the audit. b) The Balance Sheet and Revenue account of the Scheme are in agreement with the books of account
of the Scheme. c) In our opinion proper books of account of the Scheme, as required by the PFRDA has been
maintained by the PFM as far as appears from our examination of those books. d) All transactions expenses in excess of the limits contractually agreed to / approved by the Authority
are borne by the Pension Fund (if any) and are not charged to the NAV of the Scheme. e) In our opinion the Balance Sheet and Revenue Account of the Scheme dealt with by this report
comply with the “PFRDA (Preparation of Financial Statements and Auditor’s Report of Scheme under National Pension System) Guidelines-2012” and the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
9 We further certify that
a) Investments have been valued in accordance with the guidelines issued by the Authority. b) Transaction and claims/fee raised by different entities are in accordance with the prescribed fee. For Borkar & Muzumdar
Chartered Accountants Firm Registration No. 101569W B M Agarwal Partner M No.: 33254 Place: Mumbai Date: 24th April, 2015
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME G TIER II
BALANCE SHEET AT MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Sources of funds
Unit capital 1 65,384,578 41,541,786
Reserves and surplus 2 39,028,550 13,440,255
Current liabilities and provisions 3 9,847,563 35,713
Borrowings - -
Total 114,260,691 55,017,754
Application of funds
Investments (long term and short term) 4 102,307,125 54,398,388
Deposits 5 - -
Other current assets 6 11,953,566 619,366
Total 114,260,691 55,017,754
(a) Net asset as per Balance Sheet (Schedule 4+5+6 -3) 104,413,128 54,982,041
(b) Number of units outstanding 6,538,458 4,154,179
(c) NAV per unit (a)/(b) (`) (Refer note 2.8 (II)) 15.9691 13.2354
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
Scheme G Tier IIScheduleParticulars
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME G TIER II
REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2015
(In `)
March 31, 2015 March 31, 2014
Income from investments
Interest income 6,228,029 3,356,887
Dividend income - -
Net profit/(loss) on sale/redemption of investments (other than inter-
scheme transfer/sale) 1,523,276 (1,150,594)
Net profit/(loss) on inter-scheme transfer/sale of investments 77 -
Unrealised gain on appreciation in investments 6,799,003 57,351
Total income (A) Total
income (A)
14,550,385 2,263,644
Expenses and losses
Unrealised losses in value of investments 10,495 1,653,460
Provision for outstanding accrued income considered doubtful - -
Provision for doubtful deposits and current assets - -
Management fees (including service tax) [Refer Note 2.4] 64,010 114,274
Trusteeship/regulatory fees - -
Publicity expenses - -
Audit fees - -
Custodian fees 6,303 3,275
Trustee bank fees - 20
CRA fees 18,487 13,736
Less : Amount recovered on sale of units on account of CRA
charges (18,487) (13,736)
Total expenditure (B) 80,808 1,771,029
Net income/(expenditure) for the year (A-B) appropriated to
Balance Sheet 14,469,577 492,615
Balance at the beginning of the year 5,161,986 4,669,371
Balance at the end of the year carried to Balance Sheet 19,631,563 5,161,986
Significant accounting policies and notes to accounts 7
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached.
For Borkar & Muzumdar For and on behalf of Board of Directors of
Chartered Accountants ICICI Prudential Pension Funds Management
Firm Registration No. 101569W Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Date : April 24, 2015 Meghana Baji Vishal Mehta
Place : Mumbai Chief Executive Officer Company Secretary
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :
Scheme G Tier IIScheduleParticulars
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME G TIER II
Schedules forming part of the financial statements
Schedule 1: Unit capital (In `)
March 31, 2015 March 31, 2014
Initial capital - -
Unit capital
Opening balance 41,541,786 23,507,145
Additions during the year 27,267,570 21,861,951
Deduction during the year (3,424,778) (3,827,310)
Closing balance 65,384,578 41,541,786
Number of units of face value ` 10 6,538,458 4,154,179
#VALUE!
Schedule 2: Reserves and surplus (In `)
March 31, 2015 March 31, 2014
Unit premium reserve
Opening balance 8,278,269 2,592,885
Additions during the year 12,829,463 6,806,628
Deduction during the year (1,710,745) (1,121,244)
Closing balance 19,396,987 8,278,269
Surplus/(deficit) in Revenue account
Opening balance 5,161,986 4,669,371
Additions during the year 14,469,577 492,615
Deduction during the year - -
Closing balance 19,631,563 5,161,986
General reserve* - -
Appropriation account* - -
Total 39,028,550 13,440,255
* The balances have been nil throughout the year
Schedule 3: Current liabilities and provisions (In `)
March 31, 2015 March 31, 2014
Current liabilities
Sundry creditors 4,571 32,034
Contracts for purchase of investments 9,818,620 -
Interest received in advance 11,438 -
Unclaimed distributed income - -
Pending creation of units -
Unit redemption payable 12,934 3,679
Provisions - -
Total 9,847,563 35,713
Scheme G Tier II
Scheme G Tier II
ParticularsScheme G Tier II
Particulars
Particulars
ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED - SCHEME G TIER II
Schedules forming part of the financial statements
Schedule 4: Investments (In `)
March 31, 2015 March 31, 2014
Equity shares - -
Preference shares - -
Debentures and bonds - -
Central and state government securities (including treasury bills) 101,096,745 52,514,828
Commercial Paper - -
Others - Mutual funds 1,210,380 1,883,560
Total 102,307,125 54,398,388
Schedule 5: Deposits
(In `)
March 31, 2015 March 31, 2014
Deposits with scheduled banks - -
Others - -
Total - -
Schedule 6: Other current assets
(In `)
March 31, 2015 March 31, 2014
Balances with banks in current/saving account 27 7,033
Cash on hand - -
Sundry debtors - -
Contracts for sale of investments 10,717,507 -
Outstanding and accrued income 1,236,032 612,333
Advance, deposits etc. - -
Shares/debentures/others application money pending allotment - -
Others - Dividend receivable - -
Total 11,953,566 619,366
Particulars
Particulars
Particulars
Scheme G Tier II
Scheme G Tier II
Scheme G Tier II
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
Schedule 7
Significant accounting policies and notes to accounts for year ended March 31,
2015
1.1 Background
ICICI Prudential Pension Funds Management Company Limited (‘the Company’) is appointed
as a Pension Fund Manager (‘PFM’) by the National Pension System Trust (‘NPS’). The
Company has entered into an Investment Management Agreement (‘IMA’) with NPS. The
Pension Fund Regulatory and Development Authority (‘PFRDA’) guidelines require each
PFM to manage subscribers’ funds made available to it by the Trustee bank along with the
data made available by the Central Recordkeeping Agency (‘CRA’) at a consolidated level.
The Company makes investments as per the IMA, various other circulars/guidelines issued
by the PFRDA in this context from time to time and the scheme wise flow of funds.
The Company manages six separate schemes under the two tiered structure (Tier I and II)
prescribed under the NPS. The schemes are classified as Scheme E, C and G based on the
underlying asset class prescribed under the NPS as follows:
Scheme E – Equity market instruments
Scheme C – Credit risk bearing fixed income instruments
Scheme G – Government securities
1.2 Basis of preparation
The financial statements have been prepared in accordance with the PFRDA (Preparation of
financial statements and Auditor’s report of Schemes under National Pension System)
Guidelines – 2012 (‘Guidelines’), Accounting Standards (‘AS’) notified under section 133 of
the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts)
Rules 2014 to the extent made applicable by the Guidelines and generally accepted
accounting principles. The Guidelines specifically exempt the schemes from the
applicability of AS 3 (Cash Flow Statement) and AS 17 (Segmental Reporting). These
financial statements have been prepared on an accrual basis, except as otherwise stated.
The financials have been prepared for Scheme G Tier II being managed by the Company.
1.3 Investments
Purchase and sale of securities are accounted on trade date. Investments are reconciled
with the custodian records on daily basis. The holding cost of investments is determined by
the weighted average cost method and the cost does not include brokerage and other
transaction charges.
Valuation of Investments
All investments are marked to market and are carried in the Balance Sheet at the market
value as on Balance Sheet date/date of determination/date of valuation. Unrealised
gain/(loss), if any, is transferred to Revenue account.
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
As per directive received from NPS, the valuation of investments is carried out by Stock
Holding Corporation of India Limited (SHCIL). The Investment valuation methodology
adopted by SHCIL is as follows:
Central government as well as State government securities are valued at the average traded
prices received from independent valuation agencies.
Mutual fund units are valued based on the net asset values of the preceding day of the
valuation date.
Income earned on investments
Interest income on investments is recognised on daily accrual basis. In respect of
investments purchased, interest paid for the period from the last interest due date upto the
date of purchase is debited to interest recoverable account and not included in cost of
purchase. Similarly interest received at the time of sale for the period from the last interest
due date upto the date of sale is credited to interest recoverable account and not included
in sale value. Accretion of discount/amortization of premium relating to debt securities is
recognised over the holding/maturity period on a straight-line basis.
Profit or loss on sale of debt securities is the difference between the sale consideration net
of expenses, if any and the weighted average amortised cost as on the date of sale.
Profit or loss on sale of mutual fund units is the difference between the sale consideration
net of expenses, if any and the weighted average book cost.
Non-performing assets (NPA)
An investment is regarded as NPA, if interest/principal or both amount has not been
received or has remained outstanding for one quarter from the day such income/installment
has fallen due. Further the Company also classifies following assets as impaired.
1. In case of investments, securities where the certificates, if any, are not traceable for a
protracted period
2. In case of assets, other than investments, where in the opinion of the Board of Directors,
there is a substantial diminution in value.
Where income receivable on investments has accrued but has not been received for one
quarter beyond the due date, provision shall be made by debiting to the Revenue account
for the income so accrued and no further accrual of income shall be made in respect of
such investments.
Income on NPAs shall be recognised on cash basis.
The Scheme’s exposure is restricted to securities of Central and State Government which
has a sovereign guarantee; therefore NPA is not envisaged for the Scheme.
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
1.4 Units reconciliation
The subscribers’ units as per Investment management system are reconciled with Central
Recordkeeping Agency (CRA) records on daily basis.
1.5 Investment management fees
Investment management fees are recognised on daily accrual basis on closing Asset under
management (AUM) in accordance with IMA. The Investment management fee is inclusive
of brokerage but excludes custodian charges and applicable taxes, if any.
1.6 Other expenses
Custody charges are recognised on daily accrual basis in accordance with IMA. Trustee
bank charges were recognised when they were debited by the trustee bank on a quarterly
basis. The trustee bank has discontinued levying charges with effect from July 01, 2013.
Notes to accounts
2.1 Contingent liabilities
(In `)
Particulars At March 31,
2015
At March 31,
2014
Other commitments Nil Nil
2.2 Investments
All investments and deposits under the scheme are performing assets, hence no provisions
for doubtful deposits, debts and for doubtful outstandings and accrued income are required
to be made. All the investments of the schemes are in the name of the NPS Trust. All
investments are traded investments.
2.3 Details of transactions with sponsor and its related parties
Related parties and nature of relationship.
Nature of relationship Name of the related party
Pension fund manager ICICI Prudential Pension Funds Management Company
Limited
Sponsor company ICICI Prudential Life Insurance Company Limited
Associates and group
companies
Holding company of sponsor
ICICI Bank Limited
The following represents significant transactions and balances between the Scheme and its
related parties.
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
(In `)
Name of
related party
Nature of
transaction
Transactions for the
year ended
Amount recoverable/
(payable)
March 31,
2015
March 31,
2014
At March
31, 2015
At March
31, 2014
ICICI Prudential
Pension Funds
Management
Company
Limited
Investment
management
fees
64,010 114,274 (2,506) (29,968)
Aggregate investments made by the scheme in the associates and group companies at
March 31, 2015 is Nil (March 31, 2014: Nil).
2.4 Investment management fees
The Investment Management Fees is charged on closing funds under management on daily
basis for all the schemes. In terms of the PFRDA’s letter no. PFRDA/6/PFM/9/2 dated July 31,
2014, the Company has started charging investment management fee of 0.01% per annum,
with effect from August 01, 2014. The investment management fee charged upto July 31,
2014 was 0.25% per annum.
2.5 Aggregate value of purchase and sale with percentage to average daily net
assets
Aggregate value of purchase and sale with percentage to average daily net assets is as
follows:
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 1,153,180,177 550,041,047
% to average daily net assets 1,480.0% 1352.1%
Aggregate value of purchase and sale (excluding liquid mutual fund)* with percentage to
average daily net assets is as follows:
(In `)
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
Aggregate value of purchase and sale 147,247,108 251,173,152
% to average daily net assets 189.0% 617.4%
*liquid mutual fund investments are held for day to day cash management, hence excluded.
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
2.6 Investments falling under each major industry group
The total value of investments falling under each major industry group (which constitutes
not less than 5% of the total investment in the major classification of the financials) are
disclosed as under:
(In `)
Investment
classification
At March 31, 2015 At March 31, 2014
Market
value (In `)
% of
investment
class
Market
value (In `)
% of
investment
class
Government securities
& Treasury bills 101,096,745 100.0% 52,514,828 100.0%
Government securities &
Treasury bills 101,096,745 100.0% 52,514,828 100.0%
Mutual funds 1,210,380 100.0% 1,883,560 100.0%
Mutual funds 1,210,380 100.0% 1,883,560 100.0%
Net current assets 2,106,003 100.0% 583,653 100.0%
Net assets value 104,413,128 100.0% 54,982,401 100.0%
2.7 Statement of portfolio holding as on March 31, 2015
Security name Units Acquisition
cost (In `) Market value
(In `)
Government securities & Treasury
Bills 95,438,817 101,096,745
8.32% GOI 2032 (August 02, 2032) 198,000 18,953,796 20,720,700
9.23% GOI 2043 (December 23, 2043) 137,500 14,828,575 15,860,625
8.28% GOI 2032 (February 15, 2032) 125,000 12,406,700 13,050,000
182 Days TBILL 2015 (July 02, 2015) 100,000 9,818,620 9,816,330
9.20% GS 2030 (September 30, 2030) 78,600 8,189,653 8,789,052
8.30% GOI 2040 (July 02, 2040) 80,000 8,220,350 8,403,200
8.28% GOI 2027 (September 21, 2027) 68,500 6,524,109 7,107,560
8.24% GOI 2033 (November 10, 2033) 29,000 3,016,520 3,031,370
9.53% Madhya Pradesh SDL (August
01, 2023) 20,000 2,016,000 2,171,930
8.30% GOI 2042 (December 31, 2042) 20,000 1,928,583 2,102,200
91 Days TBILL 2015 (April 30, 2015) 20,000 1,984,302 1,989,990
8.24% GOI 2027 (February 15, 2027) 18,500 1,766,170 1,909,385
8.17% GOI 2044 (December 01, 2044) 16,000 1,647,365 1,671,200
9.67% Jharkhand SDL (February 12,
2024) 15,000 1,500,300 1,645,961
8.83% GOI 2041 (December 12, 2041) 10,000 1,117,234 1,106,000
8.33% GOI 2036 (June 07, 2036) 10,000 938,700 1,048,105
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
Security name Units Acquisition
cost (In `) Market value
(In `)
7.40% GOI 2035 (September 09, 2035) 7,000 581,840 673,138
Mutual Funds 1,210,237 1,210,380
IDFC Cash fund – Direct Plan - Growth 712 1,210,237 1,210,380
Total 96,649,054 102,307,125
Statement of portfolio holding as on March 31, 2014
Security name Units Acquisition
cost (In `) Market value
(In `)
Government securities & Treasury
Bills 53,639,809 52,514,828
8.28% GOI 2027 (21-September-2027) 153,500 14,599,805 14,329,225
8.32% GOI 2032 (02-August-2032) 127,000 12,082,590 11,801,475
8.12% GOI 2020 (10-December-2020). 80,000 7,756,020 7,634,400
8.28% GOI 2032 (15-February-2032) 75,000 7,271,200 6,941,250
364 Days TBILL 2014 (03-April-2014) 50,000 4,988,805 4,998,850
9.53 Madhya Pradesh SDL(01-August-
2023) 20,000 2,016,000 2,009,040
9.67% Jharkhand SDL 2024 (12-
February-2024) 15,000 1,500,300 1,517,880
8.83% GS 2041 (12-December-2041) 10,000 1,117,234 975,350
8.33% GOI 2036 (07-June-2036) 10,000 938,700 925,800
7.40% GOI 2035 (09-September-2035) 7,000 581,840 588,658
7.16% GOI 2023 (20-May-2023) 5,000 440,100 438,750
9.84% Andhra Pradesh SDL 2024 (26-
February-2024) 3,000 301,125 307,575
8.24% GOI 2027 (15-February-2027) 500 46,090 46,575
8.28% GOI 2027 (21-September-2027) 153,500 14,599,805 14,329,225
8.32% GOI 2032 (02-August-2032) 127,000 12,082,590 11,801,475
Mutual Funds 1,883,000 1,883,560
IDFC Cash fund – Direct Plan - Growth 1,883,000 1,883,560
Total 55,522,809 54,398,388
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
2.8 Key statistics
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
1. NAV per unit (`)I
(based on published NAV)
Open 13.2299 13.0838
High 16.0098 14.1333
Low 13.0405 12.2279
End
15.9691 13.2299
2. Closing Assets Under Management (` in Lakhs)
End 1,044.13 549.82
Average daily net assets (AAUM)II
779.19 406.81
3. Gross income as % of AAUMIII
9.95% 5.42%
4. Expense ratio
a. Total expense as % of AAUM (scheme wise)IV
0.0902% 0.2890%
b. Management fee as % of AAUM (scheme wise) 0.0821% 0.2809%
5. Net income as % of AAUMV
9.86% 5.13%
6. Portfolio turnover ratioVI
68.07% 276.13%
7. Total dividend per unit distributed during the period - -
8. Returns: (%)
a. Last one year 20.70% 1.12%
Benchmark 15.72% 3.91%
b. Since inception 59.69% 32.30%
Benchmark 54.57% 33.14%
c. Compound annualised yield (%)VII
Last 1 year 20.52% 1.12%
Last 3 year 11.75% 7.16%
Last 5 year 9.57% NA
Since launch of the scheme 9.53% 7.00%
Launch Date February 8, 2010
I. NAV = (Market value of investment held by scheme + value of current assets - value of
current liability and provisions, if any)/ (no. of units at the valuation date (before
creation/ redemption of units)
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
Particulars
Year ended
March 31,
2015
Year ended
March 31,
2014
The last published NAV in FY 2014 was on March 28, 2014 of ₹ 13.2299 since it was the
last business day of the financial year. However, since equity markets were operational
on March 31, 2014, it was directed by NPS trust to value its investments on prices of
March 31, 2014 to reflect the correct AUM as on Balance Sheet date. Accordingly, the
NAV computed on March 31, 2014 was ₹ 13.2354. Since March 31, 2014 was a non
business day, no transactions were conducted by the subscribers and the NAV
computed for March 31, 2014 was for disclosure purpose only.
II. AAUM = Average daily net assets
III. Gross income = Income includes Interest income, Dividend income and Net
profit/(loss) on sale of investments
IV. Total expenses = Expenses include management fees, custody fees, trustee bank
charges but excludes unrealised loss
V. Net income = Gross income less Total expenses (excludes unrealised gain/loss)
VI. Portfolio turnover = Lower of sales or purchase divided by the average AUM for the
period. Investments in liquid mutual fund is excluded from the turnover as the same is
primarily for liquidity management.
VII. Compounded annualised yield is to be calculated based on following formula:
= ((1+ cumulative return)^n) -1 (where n=365/no. of days)
ICICI Prudential Pension Funds Management Company Limited – Scheme
G Tier II
2.9 Previous year comparatives
Previous year amounts have been regrouped and reclassified wherever necessary to
conform to current year’s presentation in line with the PFRDA (Preparation of financial
statements and Auditor’s report of Schemes under National Pension System) Guidelines -
2012.
For Borkar & Muzumdar
Chartered Accountants
Firm Registration No. 101569W
For and on behalf of the Board of Directors
of ICICI Prudential Pension Funds
Management Company Limited
B M Agarwal Sandeep Bakhshi Sandeep Batra
Partner Chairman Director
Membership No. 33254
Meghana Baji Vishal Mehta
Chief Executive Officer Company Secretary
Date : April 24, 2015
Place : Mumbai
For and on Behalf of NPS Trust
Chairman, NPS Trust Board Chief Executive Officer
Date :
Place :