OFFER DOCUMENT

RELIANCE MUTUAL FUND

Reliance Diversified Power Sector Fund An open-ended Power Sector Scheme

Sale of units at applicable NAV based prices during the continuous offer

SPONSOR Corporate Office: Reliance Capital Limited Fosbery Road, Off Reay Road Station (E), Mumbai – 400 033 Tel : 022 – 30411000 Fax : 022 – 30411067

REGISTRAR Karvy Computershare (P) Limited Karvy Plaza, 21, Road No.4, Street No.1, Banjara Hills Hyderabad – 500 034 Tel: 040- 2331 2454 Fax: 040 –2331 1968

TRUSTEE Corporate Office: Reliance Capital Trustee Co. Limited Kamala Mills Compound, Trade World, ‘B’ Wing, 7th Floor, S. B. Marg, Lower Parel (W) Mumbai – 400 013 Tel. 022 – 3041 4800 Fax. 022 – 3041 4899

CUSTODIAN Deutsche Bank Kodak House, Ground Floor, Mumbai – 400 001

INVESTMENT MANAGER Corporate Office: Reliance Capital Asset Management Limited Kamala Mills Compound, Trade World, ‘B’ Wing, 7th Floor, S. B. Marg, Lower Parel (W) Mumbai – 400 013 Tel. 022 – 3041 4800 Fax. 022 – 3041 4899 E-mail : custmer_care@reliancemutual.com Touchbase Customer service center at 3030 1111

AUDITORS TO THE SCHEME Haribhakti & Co. 42, Free Press House, Nariman Point, Mumbai - 400 021

INVESTORS SHOULD NOTE THAT This Offer Document sets forth concisely the information that a prospective investor ought to know before investing. Investors should carefully read the Offer Document before making an investment decision. This Offer Document remains effective until a ‘material change’ (other than a change in Fundamental Attributes and within the purview of the offer document) occurs. Material changes will be filed with Securities and Exchange Board of India (SEBI) and circulated to the Unitholders or may be publicly notified by advertisements in the newspapers, subject to the applicable Regulations. The Scheme particulars have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date and the Offer Document has been filed

with SEBI. The Units being offered for public subscription have neither been approved nor disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this Offer Document. No person has been authorized to give any information or to make any representations not confirmed in this Offer Document, in connection with the Offer Document or the issue of Units, and any information or representations not contained herein must not be relied upon as having been authorized by the Mutual Fund or the Asset Management Company. This Offer Document is updated as on February 10, 2006 and was approved by the Board of AMC and the Trustees on December 23, 2003. PLEASE RETAIN THIS OFFER DOCUMENT FOR FUTURE REFERENCE.

I. HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE

HIGHLIGHTS

1. The Sponsor of the Fund is Reliance Capital Limited (RCL) having a net worth of over Rs. 1,437.92 crores as on March 31, 2005. 2. Choice of Investment Plans: Reliance Diversified Power Sector Fund offers the following plans: (a) Growth Plan: The Growth Plan is designed for investors interested in capital appreciation on their investment and not regular income. Accordingly, the Fund will not declare dividends under the Growth Plan. The income earned on the Growth Plan's corpus will remain invested in the Growth Plan. The Growth Plan has two options: (i) Growth Option: The Growth Plan has a Growth Option. Under this Option, there will be no distribution of income and the returns to the investor are only by way of capital gains/ appreciation, if any, through redemption at applicable NAV of the units held by them. (ii) Bonus Option: The Growth Plan has a Bonus Option. Guided by the philosophy of value-oriented returns, the Trustees may decide to periodically capitalise the sums from reserves including the amount of distributable surpluses of the scheme by way of allotment/ credit of bonus units to the unitholders accounts, the intent being to enhance the unitholders interests (b) Dividend Plan: The Dividend Plan has been designed for investors who require regular income in the form of dividends. Under the Dividend Plan, the Fund will endeavor to make regular dividend payments to the unit holders. Dividend will be distributed from the available distributable surplus after the deduction of dividend distribution tax and applicable surcharge, if any. Dividend Plan has two options: (i) Dividend Payout Option: Under this option the Dividend declared under the Dividend Plan will be paid to the unit holders within 30 days from the declaration of the dividend. (ii) Dividend Re-investment Option: The Dividend Plan has a Re-investment Option whereby the dividend distributed under the plan will be automatically re-invested at the ex-dividend NAV on the transaction day following the date of declaration of dividend and additional units will be allotted accordingly. Investors desirous of opting for the same should indicate the same in the space provided in the application form. The Fund, however, does not assure any targeted annual return/ income nor any capitalisation ratio. Accumulation of earnings and/ or capitalisation of bonus units and the consequent determination of NAV, may be suspended temporarily or indefinitely under any of the circumstances as stated under the para on 'Suspension of Purchases and/or Redemption of units' of the Offer Document. Please note that if no Plan is mentioned / indicated in the Application form, the units will, by default, be allotted under the Growth Plan. Similarly, under the Dividend Plan, if no choice (payout or reinvestment) is indicated, the applicant will be deemed to have applied for the Dividend Re-investment Option under the plan. If no Option is indicated under the Growth Plan, the applicant will be deemed to have applied for the Growth Option under the Growth Plan. The unit holder is subsequently free to switch the units from the default plan / option to any other eligible plans / options of the Scheme, at the applicable NAV. 3. Investment Objective: The primary investment objective of the scheme is to seek to generate continuous returns by actively investing in equity / equity related securities or fixed income securities of power and other associated companies.

4. Transparency:

? The NAV will be calculated and disclosed at the close of every working day which shall be published in at least two daily newspapers and also uploaded on the AMFI website and Reliance Mutual Fund website i.e. www.reliancemutual.com.

? Publication of Abridged Half-yearly Un-audited / Audited Financial Results in the newspapers or as may be prescribed under the Regulations from time to time.

? Communication of Portfolio on a half-yearly basis to the Unit holders directly or through the Publications or as may be prescribed under the Regulations from time to time.

? Despatch of the Annual Reports of the respective Schemes within the stipulated period as required under the Regulations.

5. Liquidity: As per SEBI Regulations, the Mutual Fund shall despatch redemption proceeds within 10 Working Days of receiving a valid Redemption request. A penal interest of 15% or such other rate as may be prescribed by SEBI from time to time, will be paid in case the redemption proceeds are not made within 10 Working Days of the date of receipt of a valid redemption request. However, under normal circumstances, the Mutual Fund will endeavor to despatch the Redemption cheque within 3 - 4 Working Days from the acceptance of a valid redemption request. 6. Flexibility: Unit holders will have the flexibility to alter the allocation of their investments among the scheme(s) offered by the Mutual Fund, in order to suit their changing investment needs, by easily switching between the scheme(s) / plans of the Mutual Fund. 7. Repatriation: Full Repatriation benefits would be available to NRIs/FIIs subject to applicable conditions.

RISK FACTORS AND SPECIAL CONSIDERATIONS

GENERAL RISK FACTORS ? Mutual Funds and securities investments are subject to market risks and there is no assurance or

guarantee that the objectives of the Scheme will be achieved. ? As with any investment in securities, the NAV of the Units issued under the Scheme can go up or

down depending on the factors and forces affecting the capital markets. ? Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance

of the Scheme. ? Reliance Diversified Power Sector Fund is only the name of the Scheme and does not in any

manner indicate either the quality of the Scheme; its future prospects or returns. ? The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme

beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus.

? The Mutual Fund is not guaranteeing or assuring any dividend/ bonus. The Mutual Fund is also not assuring that it will make periodical dividend/bonus distributions, though it has every intention of doing so. All dividend/bonus distributions are subject to the investment performance of the Scheme.

SCHEME SPECIFIC RISK FACTORS: ? Trading volumes and settlement periods may restrict liquidity in equity and debt investments. ? Investment in Debt is subject to price, credit, and interest rate risk. ? The NAV of the Scheme may be affected, inter alia, by changes in the market conditions, interest

rates, trading volumes, settlement periods and transfer procedures.

? The liquidity of the Scheme's investments may be inherently restricted by trading volumes, settlement periods and transfer procedures. In the event of an inordinately large number of redemption requests, or of a re-structuring of the Scheme's investment portfolio, these periods may become significant. Please read the Sections of this Offer Document entitled "Special Considerations" and "Right to Limit Redemptions".

? As per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No.10/22701/03 and dated June 14, 2005 ref SEBI/IMD/CIR NO.1/42529/05, each scheme and individual plan(s) under the schemes should have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such scheme/ plan(s) at portfolio level within a period of three months or at the end of the succeeding calendar quarter, whichever is earlier from the close of the New Fund Offer (NFO). After the NFO and the 3 months balancing period, in each subsequent quarter thereafter, on an average basis, the scheme shall meet with both the conditions of minimum number of investor and holding as a percentage of the corpus. Determining the breach of 25% limit - The average net assets of the scheme would be calculated daily and any breach of the 25% holding limit by an investor would be determined. At the end of the quarter, the average of daily holding by each such investor is computed to determine whether that investor has breached the 25% limit over the quarter. If there is a breach of limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period.

? The Fund may invest in overseas equities / ADR's / GDR's with the approval of RBI/SEBI, subject to such guidelines as may be issued by RBI/SEBI. The net assets, distributions and income of the scheme may be affected adversely by fluctuations in the value of certain foreign currencies relative to the Indian Rupee to the extent of investments in these securities. Repatriation of such investment may also be affected by changes in the regulatory and political environments. The scheme's NAV may also be affected by a fluctuation in the general and specific level of interest rates internationally, or the change in the credit profiles of the issuers.

? Although, the objective of the Fund is to generate optimal returns, the objective may or may not be achieved. The investors may note that if the AMC/Investment Manager is not able to make right decision regarding the timing of increasing exposure in debt securities in times of falling equity market, it may result in negative returns. Given the nature of scheme, the portfolio turnover ratio may be on the higher side commensurate with the investment decisions and Asset Allocation of the Scheme. At times, such churning of portfolio may lead to losses due to subsequent negative or unfavorable market movements.

? The tax benefits described in this Offer Document are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advice received by the AMC regarding the law and practice currently in force in India and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor.

RISK FACTOR ASSOCIATED WITH OVERSEAS INVESTMENT: Subject to necessary approvals and within the investment objectives of the Scheme, the Scheme may invest in overseas markets which carry a risk on account of fluctuations in foreign exchange rates,

nature of securities market of the country concerned, repatriation of capital due to exchange control and political circumstances. SPECIAL CONSIDERATIONS The Mutual Fund is not assuring or guaranteeing that it will be able to make regular periodical distributions/distribute bonus units to its Unit holders though it has every intention to manage the portfolio so as to make periodical income/bonus distributions to Unit holders. Periodical distributions will be dependent on the returns achieved by the Asset Management Company through the active management of the portfolio. Periodical distributions may therefore vary from period to period, based on investment results of the portfolio. Risks attached with the use of derivatives: RCAM may use various derivative products, as permitted by SEBI from time to time, in an attempt to protect the value of the portfolio and enhance Unit holder's interest/value of the Scheme. As and when the schemes trade in the derivatives market there are risk factors and issues concerning the use of derivatives that investors should understand derivative products are specialized instruments that require investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself. Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the "counter party") to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have a large impact on their value. Also, the market for derivative instruments is nascent in India. The Trustees have the right in their sole discretion; to limit redemptions under certain circumstances mentioned elsewhere in the Offer Document. Investors should study this Offer Document carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation, investment or any other matters. Investors are advised to consult their legal, tax, investment and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming units, before making a decision to invest / redeem Units. Investors are urged to study the terms of the Offer carefully before investing in this Scheme, and to retain this Offer Document for future reference.

DUE DILIGENCE CERTIFICATE

It is confirmed that:

? The Draft Offer Document of Reliance Power Fund, forwarded to SEBI, is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

? All the legal requirements in connection with the launch of the Scheme as also the guidelines, instructions etc., issued by the Government and any other competent authority in this behalf, have been duly complied with.

? The disclosures made in the Offer Document are true, fair and adequate to enable the investors to make a well-informed decision regarding investment in the Scheme.

? The intermediaries named in the offer document are registered with SEBI, untill the date, such registrations are valid.

? The contents of the Offer Document including figures, data, yields etc. have been checked and are factually correct.

Signature

Name: K. Suresh Babu

Designation: Compliance Officer

Place:Mumbai

Date: December 23, 2003

Note: The Due Diligence Certificate as stated above was submitted to the Securities and Exchange Board of India on December 23, 2003.

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II. DEFINITIONS AND ABBREVIATIONS

In this Offer Document, the following words and expressions shall have the meaning specified below, unless the context otherwise requires: Applicable NAV: Applicable NAV is the Net Asset Value per Unit at the close of the Working Day on which the application for purchase or redemption is received at the designated investor service centre and is considered accepted on that day. An application is considered accepted on that day, subject to it being complete in all respects and received prior to the cut-off time on that Working Day. Asset Management Company/AMC/Investment Manager/RCAM: Reliance Capital Asset Management Limited, the Asset Management Company incorporated under the Companies Act 1956, and authorized by SEBI to act as the Investment Manager to the Schemes of Reliance Mutual Fund (RMF). Bonus Unit : Bonus Unit means and includes, where the context so requires, a unit issued as fully paid-up bonus unit by capitalizing a part of the amount standing to the credit of the account of the reserves formed or otherwise in respect of this scheme. CDSC: Contingent Deferred Sales Charge, a charge imposed when the units are redeemed within the first four years of unit ownership. The SEBI (Mutual Fund) Regulations, 1996 direct that a CDSC may be charged only for the first four years after purchase and mandates the maximum amount that can be charged in each year. Collecting Bank: Branches of Banks for the time being authorized to receive application(s) for units, as mentioned in this document. Continuous Offer: Offer of the Units when the Scheme becomes open ended, after closure of the New Fund Offer. Custodian: Deutsche Bank, Mumbai, acting as Custodian to the Scheme, or any other custodian who is appointed by the Trustee. Designated Investor Service Centres (DISC / Official point of acceptance for transaction): Any location as may be defined by the Asset Management Company from time to time, where investors can tender the request for subscription, redemption or switching of units etc. Entry Load: Load on subscriptions / switch in. However no entry loads shall be applicable on investments made by a Fund of Funds scheme in Reliance Diversified Power Sector Scheme. Exit Load: Load on redemptions / switch out. Equity related instruments: Such instruments like Convertible bonds and debentures and warrants carrying the right to obtain equity shares and derivative instruments.

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FII: Foreign Institutional Investors, registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995. Investment Management Agreement (IMA): The Agreement entered into between Reliance Capital Trustee Co. Limited and Reliance Capital Asset Management Limited by which RCAM has been appointed the Investment Manager for managing the funds raised by RMF under the various Schemes, and all amendments thereof. Load: A charge that may be levied as a percentage of NAV at the time of entry into the scheme/plans or at the time of exiting from the scheme/ plans. Local Cheque: A Cheque handled locally and drawn on any bank, which is a member of the banker's clearing house located at the place where the application form is submitted. Regulations/ Mutual Fund Regulations: Securities and Exchange Board of India (Mutual Funds) Regulations as amended from time to time and such other regulations as may be in force from time to time to regulate the activities of Mutual Funds. NAV / Net Asset Value: Net Asset Value of the Units in each plan of the Scheme is calculated in the manner provided in this Offer Document or as may be prescribed by Regulations from time to time. The NAV will be computed upto four decimal places. NRI: Non-Resident Indian. Offer Document: The document issued by Reliance Mutual Fund, offering units of Reliance Diversified Power Sector Fund (“An open-ended Power Sector Scheme”) for subscription. PIO: Person of Indian Origin Purchase Price: Purchase Price to the investor of Units of any of the plans computed in the manner indicated in this offer document. RBI / Reserve Bank of India: Reserve Bank of India, established under the Reserve Bank of India Act, 1934. RMF /Mutual Fund/the Fund: Reliance Mutual Fund, (formerly known as Reliance Capital Mutual Fund), a Trust under Indian Trust Act, 1882 and registered with SEBI vide registration number MF/022/95/1 dated June 30, 1995. RCTC/Trustee/Trustee Company: Reliance Capital Trustee Co. Limited, a Company incorporated under the Companies Act, 1956, and authorized by SEBI and by the Trust Deed to act as the Trustee of Reliance Mutual Fund. RCL/Sponsor/Settlor: Reliance Capital Limited Redemption Price: Redemption Price to the investor of Units of any of the plans computed in the manner indicated in this offer document.

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Registrar /Karvy: Karvy Computershare Pvt Ltd., who have been appointed as the Registrar or any other Registrar who is appointed by RCAM. Scheme: Reliance Diversified Power Sector Fund ("An open-ended Power Sector Scheme") SEBI: The Securities and Exchange Board of India. SEBI Regulations/ Regulations: SEBI (Mutual Fund) Regulations, 1996, including any subsequent amendments or modifications therto. Plans: The Scheme offers two Plans, Growth Plan and Dividend Plan Trigger Facility: Value & NAV Trigger to introduce a Stop loss or a Gain Cap. Trust Deed: The Trust Deed entered into on April 25, 1995 between the Sponsor and the Trustee, and all amendments thereof. Trust Fund: The corpus of the Trust, unit capital and all property belonging to and/or vested in the Trustee. Unit: The interest of the investors in any of the plans, of the scheme which consists of each Unit representing one undivided share in the assets of the corresponding plan of the scheme. Unitholder: A person who holds Unit(s) under the scheme. Unitholders Record: Unitholders whose names appear on the unitholders register of the concerned plan/(s) on the date of determination of dividend, subject to realization of the cheque. Working Day: Any day, provided such day is not a Saturday or Sunday or any day on which Banks in Mumbai are Closed for commercial transactions and The Stock Exchange, Mumbai and/or National Stock Exchange are closed for transactions or a day on which banks are open but The Stock Exchange, Mumbai and/or The National Stock Exchange are closed for transactions or a day on which sale of units is suspended by the AMC or a day on which normal business could not be transacted due to storms, floods, bandhs, strikes or any other calamities, etc, subject to modifications by RCAM from time to time. Words and Expressions used in this Offer Document and not defined: Same meaning as in Regulations.

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III. SUMMARY OF THE SCHEME

SCHEME FEATURES: Scheme: Reliance Diversified Power Sector Fund Type: An open-ended Power Sector Scheme Investment Pattern: 0 – 100% in Equity & Equity related securities in the Power Sector. 0 – 100% in Fixed Income Securities of Power Sector & Money Market Instruments Investment Objective: The primary investment objective of the scheme is to seek to generate continuous returns by actively investing in equity / equity related or fixed income securities of power and other associated companies. Net Asset Value: Calculated & declared every Working day Plans/Options: Dividend & Growth Plans. Dividend Pay-out & Reinvestment Options under Dividend Plan & Growth and Bonus Options under Growth Plan Minimum Application Amount: Rs. 5,000/- for Resident and Non-resident investors and in multiples of Re. 1, thereafter Minimum Additional Investment* (During Continuous Offer): Rs. 1000/- and in multiples of Re. 1 thereafter (*including switch in after opening a folio with minimum of Rs 5000/-) Portfolio Disclosures: Half-yearly Entry Load: For Subscription below Rs. 2 crs 2.25% For subscription of Rs. 2 crs & above and below Rs 5 crs 1.25% For Subscription of Rs 5 crs & above Nil Exit Load: Nil. Contingent Deferred Sales Charge: Nil Inter-Scheme Switch: At the applicable loads in the respective Scheme/s Inter Plan/Inter Option Switch: Nil Redemption Cheques Issued: Mutual Fund shall endeavour to issue within 3 – 4 Working days Minimum Redemption: Any amount or any number of units

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Cut off time: 3:00 p.m. on working days as defined in the Offer Document Recurring / Systematic Investment Plan (RIP/SIP): Available as detailed elsewhere in the Offer Document Regular Withdrawal Plan (RWP): Available as detailed elsewhere in the Offer Document Regular Investment Option for corporate employees (RICE): Available as detailed elsewhere in the Offer Document. Switch Facility: Available, subject to minimum Rs. 5000/- & any amount thereafter in switch in scheme (for opening a new folio/account) & minimum Rs 1000 & any amount thereafter for additional switch in. No load applicable for switches between the equity / sector specific schemes. However, differential load shall be charged for switching from Reliance Index to any other equity/sector specific scheme and switching from any other equity / sector specific scheme to Reliance NRI Equity Fund. Nomination Facility: Available Systematic Transfer Plan (STP): Available Dividend Transfer Plan (DTP): Available Mode of Holding: Single, Joint or Anyone or Survivor Benchmark Index: India Power Index Switching Option: Investors may opt to switch Units between the Dividend Plan and Growth Plan of the Scheme at NAV based prices. Switching will also be allowed into/from any other eligible open-ended Schemes of the Fund either currently in existence or a Scheme(s) that may be launched / managed in future, as per the features of the respective scheme and as per the applicable loads. Recurring Expenses Investment Management Expenses 1.25 % Marketing Expenses .75% Operational Expenses 0.25% Total 2. 25%

The above expenses are estimates only and are subject to change as per actuals. While the AMC fees remains the same, other expenses, namely, Marketing Expenses and Operational Expenses may change inter se and the total expenses shall not exceed 2.50% of the amount of the Scheme's average daily net assets. Subject to SEBI Regulations, the AMC reserve the right to modify the above estimate for recurring expenses on a prospective basis.

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Allotment of Units: Allotment of units in respect of applications received during NFO will be made within one month from date of closure of the NFO (subject to realization of cheque/draft). For Subscriptions received after re-opening for continuous offer,at the DISC's within the cut-off timings and considered accepted for that day, the units will be allotted as per the applicable NAV on the T day, Where the T day is the transaction day, provided the application is received within the cut-off timings for the transaction day. RCAM, in consultation with the Trustees reserves the right to discontinue/ add more plans/ options at a later date subject to complying with the prevailing SEBI guidelines and Regulations. RCAM, in consultation with the Trustees, reserves the right to change the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Scheme, on a prospective basis.

IV. CONSTITUTION AND MANAGEMENT OF THE FUND

1. THE FUND Reliance Mutual Fund Reliance Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882 with Reliance Capital Limited, as the Settlor/Sponsor and Reliance Capital Trustee Co. Limited, as the Trustee. RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of the Mutual Fund has been changed from Reliance Capital Mutual Fund to Reliance Mutual Fund effective March 11, 2004 vide SEBI's letter no. IMD/PSP/4958/2004 date March 11, 2004. Reliance Mutual Fund was formed to launch various schemes under which units are issued to the public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. The main objects of the Trust are: - i. To carry on the activity of a Mutual Fund as may be permitted by law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unitholders; ii. To deploy Funds thus raised so as to help the Unitholders earn reasonable returns on their savings; and iii. To take such steps as may be necessary from time to time to realise the effects without any limitation. 2. SPONSOR COMPANY Reliance Capital Limited Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited.

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Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd. (RCL). RCL has been promoted by Reliance Industries Limited (RIL), one of India's largest private sector enterprise and AAA Enterprises (P) Limited. RIL has a net worth of Rs.40,483 crores as on March 31, 2005 and currently has a large family of shareholders. Reliance Capital Limited is a Non Banking Finance Company engaged in leasing, investment and other fund based activities. The networth of RCL is Rs. 1,437.92 crores as on March 31, 2005. Given below is a summary of RCL's financials:

(Rs. in crores) Particulars 2004-2005 2003-04 2002-03 Total Income 295.69 356.79 458.78 Profit Before Tax 111.21 105.79 102.63 Profit After Tax 105.81 105.79 102.63 Reserves & Surplus 1310.08 1271.84 1208.50 Net Worth 1437.92 1399.81 1336.33 Earnings per Share (Rs.) 8.31 8.31 8.06

(Basic + Diluted) (Basic+ Diluted) Book Value per Share (Rs.) 112.95 109.96 104.54 Dividend (%) 30% 29% 29% Paid up Equity Capital 127.84 127.84 127.83 RCL has contributed Rupees One Lac as the initial contribution to the corpus for the setting up of the Mutual Fund. RCL is responsible for discharging its functions and responsibilities towards the Fund in accordance with the SEBI Regulations. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the contribution of an amount of Rupees one lakh made by them towards the initial corpus for setting up the Fund and such other accretions and additions to the corpus. 3. THE TRUSTEE Reliance Capital Trustee Co. Limited Regd. Office: EO1, Reliance Greens Village Motikhavdi, Digvijaygram, District Jamnagar – 361140 Gujarat

Corporate Office : Kamala Mills Compound, Trade World, B Wing,7th Floor, Lower Parel (West), Mumbai-400 013.

Reliance Capital Trustee Co. Limited (RCTC), a company incorporated under the Companies Act, 1956, has been appointed as the Trustee to the Fund vide the Trust Deed dated April 25, 1995 executed between the Sponsor and the Trustee. RCTC has been appointed as the Trustee to “Reliance India Power Fund”, a Venture Capital Fund registered with the SEBI vide registration number IN/VCF/05-06/062 dated June 16, 2005 but this activity is yet to commence. An application has also been filed for registration of “Reliance Venture Capital Fund” with SEBI.

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1. The Directors Directors of RCTC are: Name and Address Other Directorships

Mr. S. P. Talwar* Limited, 162, Kshitij, 16th Floor, Limited, 47, Nepean Sea Road, Mumbai – 400036 (Former Deputy Governor of Reserve Bank of India)

Director: Venragiri Power Generation Reliance General Insurance Company Reliance Life Insurance Company Limited, M/s. Crompton Greaves Limited

Mr. S. S. Bhandari P-7, Tilak Marg, ‘C; Scheme, Jaipur – 302005 Chartered Accountant

Director: M/s Vaibhav Gems Limited, Jaipur Senior Partner: M/s S. Bhandari & Co. Chartered Acountants, Jaipur

Mr. A. N. Shanbhag* 96/11, Mohini Mansion, 2nd Floor, Near D. S. High School, Sion(W), Mumbai-400 022 Tax & Investment Consultant

Director: CanBank Mutual Fund, MCS Ltd Proprietor: Wonderland Investments Consultants

Mr. Sujal Shah 9, Ganesh Bhuvan, Natwar Nagar, Road No. 2 Jogeshwari (East), Mumbai – 400 060 Chartered Accountant

Director: i-Process Services (India) Private Limited, Gitanjali Gems Limited, Partner : M/s N. M. Raiji & Co.

* Associate Director Note: As per Regulation 16(5) of the SEBI (Mutual Funds) Regulations, 1996, “two-thirds of the trustees shall be independent persons and shall not be associated with the sponsors or be associated with them in any manner whatsoever”. As per SEBI Circular dated October 28, 2002, “Trustee Company must appoint independent director(s) in place of the resigning director(s) within a period of three months from the date of resignation.” Further, in view of the above, the composition of the Board of Directors of Reliance Capital Trustee Co. Limited shall be re-aligned as per the directions of SEBI.

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2. Duties and Obligations of the Trustees In accordance with SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed

constituting the Mutual Fund, the Trustees are required to fulfill several duties and obligations, including the following: a. The Trustee and the Asset Management Company shall with the prior approval of

SEBI enter into an Investment Management Agreement (IMA). b. The Investment Management Agreement shall contain such clauses as are mentioned

in the Fourth Schedule of the SEBI (MFs) Regulations, 1996 and other such clauses as are necessary for the purpose of making investments.

c. The Trustees shall have a right to obtain from the Asset Management Company such information as is considered necessary by the Trustees.

d. The Trustee shall ensure before the launch of any scheme that the Asset Management Company possesses/has done the following: (i) Systems in place for its back office, dealing room and accounting; (ii) Appointed all key personnel including fund manager(s) for the Scheme(s) and

submitted their bio-data which shall contain the educational qualifications, past experience in the securities market to SEBI, within 15 days of their appointment;

(iii) Appointed Auditors to audit its accounts; (iv) Appointed a Compliance Officer to comply with regulatory requirement and to

redress investor grievances; (v) Appointed Registrars and laid down parameters for their supervision; (vi) Prepared a compliance manual and designed internal control mechanisms

including internal audit systems; and (vii) Specified norms for empanelment of brokers and marketing agents.

e. The Trustee shall ensure that the Asset Management Company has been diligent in empanelling the brokers, in monitoring securities transactions with brokers and avoiding undue concentration of business with any broker.

f. The Trustee shall ensure that the Asset Management Company has not given any undue or unfair advantage to any associate or dealt with any of the associates of the Asset Management Company in any manner detrimental to interest of unitholders.

g. The Trustee shall ensure that the transactions entered into by the Asset Management Company are in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the Scheme.

h. The Trustee shall ensure that the Asset Management Company has been managing the Mutual Fund Scheme independent of other activities and have taken adequate steps to ensure that the interest of investors of one Scheme are not compromised with those of any other scheme or of other activities of the Asset Management Company.

i. The Trustee shall ensure that all the activities of the Asset Management Company are in accordance with the provisions of SEBI (Mutual Funds) Regulations, 1996.

j. Where the Trustees have reason to believe that the conduct of the business of the Mutual Fund is not in accordance with the Regulations and the Scheme, they shall forthwith take such remedial steps as deemed necessary by them and shall immediately inform SEBI of the violation and the action taken by them.

k. Each Trustee shall file the details of his transactions in securities (above Rs.1 Lac per transaction) with the Mutual Fund on a quarterly basis.

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l. The Trustees shall be accountable for and be the Custodian of the funds and property of the respective Schemes and shall hold the same in trust for the benefit of the unitholders in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the provisions of the Trust Deed.

m. The Trustees shall take steps to ensure that the transactions of the Mutual Fund are in accordance with the provisions of the Trust Deed.

n. The Trustees shall be responsible for the calculation of any income due to be paid to the Mutual Fund and also of any income received in the Mutual Fund for the unitholders of any Scheme in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed.

o. The Trustees shall obtain the consent of the unitholders of the Scheme: (i) Whenever required to do so by SEBI in the interest of the unitholders; (ii) Whenever required to do so, on the requisition made by three-fourths of the

unitholders of any Scheme under the Mutual Fund; (iii) When the majority of the Trustees decide to wind up the Scheme or prematurely

redeem the Units; p. The Trustees shall ensure that no change in the fundamental attributes of any

Scheme or the Trust or fees and expenses payable or any other change which would modify the Scheme and affects the interest of unitholders, shall be carried out unless :- (a) A written communication about the proposed change is sent to each unitholder

and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the head office of the Mutual Fund is situated; and

(b) The unitholders are given an option to exit at the prevailing net asset value without any exit load.

q. The Trustee shall call for the details of transactions in securities by the key personnel of the Asset Management Company in his own name or on behalf of the Asset Management Company and shall report to SEBI, as and when required.

r. The Trustee shall quarterly review all transactions carried out between the Mutual Fund, Asset Management Company and its associates.

s. The Trustee shall quarterly review the net worth of the Asset Management Company and shall ensure that the same is in accordance with the clause (f) of sub-regulation (1) of regulation 21 of SEBI (Mutual Funds) Regulations, 1996.

t. The Trustee shall periodically review all service contracts such as custody arrangements, transfer agency of the securities and satisfy itself that such contracts are executed in the interest of the unitholders.

u. The Trustee shall ensure that there is no conflict of interest between the manner of deployment of the net worth by the Asset Management Company and the interest of the unitholders.

v. The Trustee shall periodically review the investor complaints received and the redressal of the same by the Asset Management Company.

w. The Trustee shall abide by the Code of Conduct as specified in the Fifth Schedule of the SEBI (Mutual Funds) Regulations, 1996.

x. The Trustee shall furnish to SEBI on a half-yearly basis the following: (i) A report on the activities of the Mutual Fund; (ii) A certificate stating that the Trustees have satisfied themselves that there have

been no instances of self-dealing or front-running by any of the Trustees and by the directors and key personnel of the Asset Management Company; and

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(iii) A certificate to the effect that the Asset Management Company has been managing the Scheme independently of any other activities and in case any activities of the nature referred to in regulation 24(2) of the SEBI (Mutual Funds) Regulations, 1996 have been undertaken by the Asset Management Company, adequate steps to ensure that the interest of the unitholders are protected, have been taken.

y. The independent Trustees referred to in sub-regulation (5) of Regulation 16 shall give their comments on the report received from the Asset Management Company regarding the investments by the Mutual Fund in the securities of group companies of the Sponsor.

z. The Trustees shall exercise due diligence as under: General Due Diligence: i) The Trustees shall be discerning in the appointment of the directors on the Board of

the Asset Management Company. ii) The Trustees shall review the desirability or continuance of the Asset Management

Company if substantial irregularities are observed in any of the Schemes and shall not allow the Asset Management Company to float new Schemes.

iii) The Trustee shall ensure that the trust property is properly protected, held and administered by proper persons and by a proper number of such persons.

iv) The Trustee shall ensure that all the service providers are holding appropriate registrations from SEBI or concerned regulatory authority.

v) The Trustees shall arrange for test checks of service contracts. vi) The Trustees shall immediately report to SEBI of any special developments in the

Mutual Fund. Specific Due Diligence: The Trustees shall: i) Obtain internal audit reports at regular intervals from independent auditors appointed

by the Trustees. ii) Obtain compliance certificates at regular intervals from the Asset Management

Company. iii) Hold meetings of the Trustees once in two calendar months and atleast six such

meetings shall be held in every year. iv) Consider the reports of the independent auditor and compliance reports of Asset

Management Company at the meetings of Trustees for appropriate action. v) Maintain records of the decisions of the Trustees at their meetings and of the minutes

of the meetings. vi) Prescribe and adhere to a code of ethics by the Trustees, Asset Management

Company and its personnel. vii) Communicate in writing to the Asset Management Company of the deficiencies and

checking on the rectification of deficiencies. aa. The independent directors of the trustees shall pay specific attention to the

following, as may be applicable, namely:- i) The Investment Management Agreement and the compensation paid under

the agreement. ii) Service contracts with affiliates as to whether the Asset Management

Company has charged higher fees than outside contractors for the same services.

iii) Selection of the Asset Management Company ‘s independent directors

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iv) Securities transactions involving affiliates to the extent such transactions are permitted by Regulations.

v) Selecting and nominating individuals to fill independent directors vacancies. vi) Code of ethics must be designed to prevent fraudulent, deceptive or

manipulative practices by insiders in connection with personal securities transactions.

vii) The reasonableness of fees paid to Sponsors, Asset Management Company and others for services provided.

viii) Principal underwriting contracts and renewals ix) Any service contract with the associates of the Asset Management

Company. ab. The Trust Deed shall not be amended without obtaining the prior approval of

SEBI, and the unitholders approval would be obtained where it affects the interest of unitholders.

Where SEBI Regulations provide for seeking the approval of the Unit Holders for any purpose, the Trustee may adopt any of the following procedures: (i) Seeking approval by postal ballot or (ii) Approval of the Unit-holders present and voting at a meeting to be specifically convened by the Trustee for the purpose. For this purpose, the Trustees shall give 21 days notice to the Unit Holders and the Trustees may lay down guidelines for the actual conduct and accomplishment of the voting at the meeting and announcement of the results.

Under the Trust Deed, duties and obligations also include the following: i) In carrying out its responsibility, the Trustee and its directors shall maintain

arms length relationship with other companies, or institutions or financial intermediaries or any body corporate with which they may be associated.

ii) The Directors of the Trustee shall not participate in any decision-making process/resolutions of its board meetings for any investment in which they may be interested.

iii) All the Trustees shall furnish to the Board of Trustees or Trustee Company particulars of interest which he may have in any other company, or institution or financial intermediary or any corporate by virtue of his position as Director, partner or with which he may be associated in any other capacity.

iv) The Trustee shall not acquire or allow the AMC to acquire any asset out of the Trust Fund and/or Unit Capital, which involves the assumption of unlimited liability or results in encumbrance of Trust Fund and/or Unit Capital in any way.

v) The Trustee shall not make or guarantee loans or take up any activity in contravention of SEBI Regulations except with the prior approval of SEBI nor shall it allow the AMC to do so.

However, as and when there is an addition / modification / deletion in the duties and responsibilities of the Trustee, due to a change in the SEBI Regulations, such addition / modification / deletion shall be applicable here, accordingly.

The Trustee shall not be held liable for acts done in good faith if they have exercised adequate due diligence honestly.

The Trustees shall meet at least once in two calendar months and at least six such meetings shall be held in every year to review the information / reports submitted by the

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AMC in accordance with the Regulations. As per Regulations prevailing during the year ended March 31, 2005, six meetings of the Board of Directors of the Trustee Company were held.

The Trustees have also appointed the statutory auditors to verify the books of accounts and to ascertain the true and fair representation of the state of affairs as on a particular day and to ascertain profit/ loss of the Mutual Fund, as at the end of the financial year.

The Board of Trustees has constituted an Audit Committee, chaired by an independent Trustee. The Committee meets periodically to discuss the internal control systems, the scope of audit of the internal auditors, as well as the observations made by them. It also reviews the half-yearly and annual financial accounts. Recommendations, if any, of the audit committee on any matter relating to financial management etc. are considered in the subsequent Board meeting of AMC and Trustees.

3. Trusteeship Fees Pursuant to the Trust Deed constituting the Fund, the Fund is authorised to pay the

Trustee, a fee for their services, in addition to the reimbursement of all costs, charges and expenses, sum computed at the rate of 0.05% of the amount, being the aggregate of the Trust Fund and Unit Capital of all the Schemes put together on 1st April each year or a sum of Rs.5 Lacs, which ever is lower or such other sum as may be agreed upon between the Settlor and the Trustee from time to time. The Trustee may charge further fees as permitted from time to time under the Trust Deed and the Regulations.

D. ASSET MANAGEMENT COMPANY (AMC) Reliance Capital Asset Management Limited Reliance Capital Asset Management Limited (RCAM), a company registered under the

Companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund.

Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited. Reliance Capital Asset Management Limited was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorised to act as Investment Manager of the Mutual Fund. The networth of the Asset Management Company including Preference shares as on March 31, 2005 is Rs. 30.13 crores. The Mutual Fund has launched twenty-four Schemes till date, namely: Reliance Vision Fund (September 1995), Reliance Growth Fund (September 1995), Reliance Income Fund (December 1997), Reliance Liquid Fund (March 1998), Reliance Medium Term Fund (August 2000), Reliance Short Term Fund (December 2002) and Reliance Fixed Term Scheme (March 2003), Reliance Banking Fund (May 2003), Reliance Gilt Securities Fund (July 2003), Reliance Monthly Income Plan (December 2003), Reliance Diversified Power Sector Fund (March 2004) Reliance Pharma Fund ( May 2004), Reliance Floating Rate Fund (August 2004), Reliance Media & Entertainment Fund (September 2004), Reliance NRI Equity Fund (October 2004), Reliance NRI Income Fund (October 2004), Reliance Index Fund, Reliance Equity Opportunities Fund

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(February 2005), Reliance Fixed Maturity Fund – Series I (March 2005), Reliance Fixed Maturity Fund – Series II (April 2005), Reliance Regular Savings Fund (May 2005), Reliance Liquidity Fund (June 2005), Reliance Tax Saver (ELSS) Fund (July 2005), Reliance Fixed Tenor Fund (November 2005) and Reliance Equity Fund(February 2006) RCAM has been registered as a portfolio manager vide SEBI Registration No. INP000000423 and renewed effective 1st August, 2003. RCAM has commenced these activities. It has been ensured that key personnel of the AMC, the systems, back office, bank and securities accounts are segregated activity wise and there exists systems to prohibit access to inside information of various activities. As per SEBI Regulations, it will further ensure that AMC meets the capital adequacy requirements, if any, separately for each such activity.

RCAM has been appointed as the Investment Manager of “Reliance India Power Fund”,

a Venture Capital Fund registered with the SEBI vide registration number IN/VCF/05-06/062 dated June 16, 2005 but this activity is yet to commence. However, there is no conflict of interest between various business activities carried on by Asset Management Company.

1. Name and Address of the Asset Management Company for the Mutual Fund Reliance Capital Asset Management Limited

Regd. Office: EO1, Reliance Greens Village Motikhavdi, Digvijaygram, District Jamnagar – 361140 Gujarat

Corporate Office : Kamala Mills Compound, Trade World, B Wing,7th Floor, Lower Parel (West), Mumbai-400 013.

2. Shareholders of AMC Reliance Capital Asset Management Limited is a wholly owned subsidiary of

Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited.

3. Directors The Directors of RCAM are:

Mr. Amitabh Jhunjhunwala* Flat A-212, NCPA Apartments Nariman Point Mumbai, 400 021 Senior Corporate Executive

Director: Reliance Capital Limited Anil Dhirubhai Ambani Foundation Reliance Asset Management(Mauritius) Limited Reliance Capital Ventures Limited Reliance General Insurance

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Company Limited Reliance Life Insurance Company Limited Anil Dhirubhai Ambani Enterprises Limited

Mr. Amitabh Chaturvedi * Raheja Empress, Flat No. 1201/1202, 12th Floor, Veer Savarkar Marg, Opp. Siddhi Vinayak Temple, Prabhadevi, Mumbai - 400 025 Senior Corporate Executive

Director: Reliance Asset Management (Singapore) Pte Limited; Reliance Asset Management (Mauritius) Limited, Reliance Infoinvestments Limited

Ms. Sulajja Firodia Motwani C3, Lane 5, Abhimanshree Housing Society, Pashan Road, Pune - 411 007 Senior Corporate Executive

Joint Managing Director: Kinetic Engineering Limited, Pune, Director: Kinetic Motor Company Limited, Pune, Kinetic Marketing and Services Ltd., Pune

Mr. Kanu Doshi 102, Shivala, Khatau Road, Cuffe Parade, Mumbai – 400 005 Chartered Accountant

Chairman: Matrix Advisors (India) Private Limited Director: BOB Capital Markets Limited, Peoples Financial Services Limited, Alphaplus Investment Management Private Limited

Mr. Manu Chadha C-35, Malcha Marg, Chankyapuri, New Delhi – 110 021 Chartered Accountant

Director: TRC Financial Services Limited, Himalayan Crest Power Limited, GIC Housing Finance Limited, Kotla Hydro Power Limited, Ispat Industries Limited, TRC Corporate Consulting (P) Limited, SBI Funds Management Pvt. Ltd. Partner: M/s T. R. Chadha & Co., Chartered Accountants

*Associate Director

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4. Duties and Obligations of the Asset Management Company In accordance with SEBI (Mutual Funds) Regulations, 1996, the Trust Deed and the

Investment Management Agreement, the Investment Manager has several duties and obligations, including the following:

1. The Asset Management Company shall take all reasonable steps and exercise due diligence to ensure that the investment of funds pertaining to any scheme is not contrary to the provisions of SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed.

2. The Asset Management Company shall exercise due diligence and care in all its investment decisions as would be exercised by other persons engaged in the same business.

3. The Asset Management Company shall be responsible for the acts of commissions or omissions by its employees or the persons whose services have been procured by the Asset Management Company.

4. The Asset Management Company shall submit to the Trustees quarterly reports on its activities and the compliance with SEBI (Mutual Funds) Regulations, 1996, amended up-to-date.

5. The Trustees, at the request of the Asset Management Company, may terminate the assignment of the Asset Management Company at any time provided that such termination shall become effective only after the Trustees have accepted the termination of assignment and communicated their decision in writing to the Asset Management Company.

6. Notwithstanding anything contained in any contract or agreement or termination, the Asset Management Company or its directors or other officers shall not be absolved of any liability to the Mutual Fund for their acts of commission or omission, while holding such position or office.

7. The Chief Executive Officer of the AMC shall ensure that the Fund complies with the provisions of the SEBI Regulations and that the investments made by the Fund Managers are in the interest of the Unitholders and shall also be responsible for the overall risk management function of the Fund.

8. The Fund Manager shall ensure that the funds of the Scheme are invested to achieve the objectives of the Scheme and are in the interest of the Unitholders.

9. An Asset Management Company shall not, through any broker associated with the sponsor, purchase or sell securities, which is average of 5% or more of the aggregate purchases and sale of securities made by the mutual fund in all its schemes. Provided that for the purposes of the relevant sub-regulation, aggregate purchase and sale of securities shall exclude sale and distribution of units issued by the mutual fund. Provided further that the aforesaid limit of 5% shall apply for a block of any three months. An Asset Management Company shall not purchase and sell through any broker (other than an associated broker referred to above) which is average of 5% or more of the aggregate purchases and sale of securities made by the mutual fund in all its Schemes, unless the Asset Management Company has recorded in writing the justification for exceeding the limit of 5% and reports of all such investments are sent to the Trustees on a quarterly basis. Provided that the aforesaid limit shall apply for a block of three months.

10. An Asset Management Company shall not utilise the services of the Sponsor or any of its associates, employees or their relatives, for the purpose of any securities transaction and distribution and sale of securities, provided that an

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Asset Management Company may utilise such services if disclosure to that effect is made to the unitholders and the brokerage or commission paid is also disclosed in the half yearly annual accounts for the Mutual Fund.

11. As per the SEBI Circular dated May 24, 2001 no brokerage will be payable for investments made by Sponsors of the Mutual Fund in any of the Schemes of the Fund, on a prospective basis.

12. The Asset Management Company shall file with the Trustee the details of transactions in securities by the key personnel of the Asset Management Company in their own name or on behalf of the Asset Management Company and shall also report to SEBI, as and when required by SEBI.

13. In case the Asset Management Company enters into any securities transaction with any of its associates, a report to that effect shall be sent to the Trustee at their next meeting.

14. In case any company has invested more than 5% of the net asset value of a scheme, the investment made by that scheme or by any other scheme of the same mutual fund in that company or its subsidiaries, if any, shall be brought to the notice of the Trustees by the Asset Management Company and be disclosed in the half-yearly and annual accounts with justification for such investment provided that the latter investment has been made within one year of the date of the former investment calculated on either side.

15. The Asset Management Company shall file with the Trustees and SEBI: - (i) Detailed bio-data of all its directors along with their interest in other

companies within 15 days of their appointment; (ii) Any change in the interest of directors every six months and (iii) A quarterly report to the Trustees giving details and adequate justification

about the purchase and sale of securities of the group companies of the Sponsor or the Asset Management Company as the case may be, by the Mutual Fund during the said quarter.

16. A statement of holding in securities of the directors of the Asset Management Company shall be filed with the Trustees, with the dates of acquisition of such securities at the end of each financial year.

17. The Asset Management Company shall not appoint any person as a key personnel who has been found guilty of any economic offence or involved in violation of securities laws.

18. The Asset Management Company shall appoint Registrars and Transfer Agents who are registered with SEBI. Provided if the work relating to the transfer of Units is processed in-house, the charges at competitive market rates may be debited to the Scheme and for rates higher than the competitive market rates, prior approval of the Trustees shall be obtained and reasons for charging higher rates shall be disclosed in the annual accounts.

19. The RCAM shall not undertake any other business except that permitted under the Regulations. The RCAM shall meet with the capital adequacy requirements, if any, separately for each of the separate activity, if any undertaken by the AMC and obtain separate approval, if necessary under the Regulations.

20. The RCAM shall not invest in any of its schemes unless full disclosure of its intention to invest has been made in the offer documents.

21. The RCAM shall not charge any fees on its investment in that scheme. 22. The RCAM does not face any contingent interest in connection with the business

activities carried on by it.

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23. The Asset Management Company shall abide by the Code of Conduct as specified in the Fifth Schedule to the SEBI (Mutual Funds) Regulations, 1996.

24. The independent directors of the AMC shall pay specific attention to the following, as may be applicable, namely:-

(i) The Investment Management Agreement and the compensation paid under the agreement.

(ii) Service contracts with affiliates whether the Asset Management Company has charged higher fees than outside contractors for the same services.

(iii) Selection of the Asset Management Company‘s independent directors (iv) Securities transactions involving affiliates to the extent such transactions

are permitted. (v) Selecting and nominating individuals to fill independent directors’

vacancies. (vi) Code of ethics must be designed to prevent fraudulent, deceptive or

manipulative practices by insiders in connection with personal securities transactions.

(vii) The reasonableness of fees paid to Sponsors, Asset Management Company and others for services provided. (viii) Principal underwriting contracts and the renewals. (ix) Any service contract with the associates of the Asset Management

Company. Under the Investment Management Agreement, the duties and obligations also include the following: a) RCAM will be responsible for making, floating, issuing Schemes for the

Trust after approval of the same by the Trustees and SEBI as well as investing and managing the funds mobilised under various Schemes, in accordance with the provisions of the Trust Deed and SEBI Regulations.

b) RCAM must disclose the basis of calculating the repurchase/redemption price and Net Asset Value of the various Schemes of the Fund to the investors, at such intervals as may be specified by SEBI and/or the Trustees and in accordance with the SEBI Regulations.

c) RCAM must maintain books and records about the operation of various Schemes of the Fund to ensure compliance with the Regulations and guidelines for Mutual Funds as may be issued by SEBI from time to time, and shall submit a Scheme wise quarterly report on functioning of the Fund to the Trustee or at such intervals and in such manner as may be required or called for by the Trustee or SEBI.

d) RCAM shall exercise all due diligence and vigilance in carrying out its duties and in protecting the rights and interest of the unitholders.

e) RCAM will at all times ensure that the Trust Fund is segregated from assets of RCAM and assets of any other funds for which RCAM is responsible.

f) RCAM shall submit to the Trustee all information concerning the operation of the various Schemes of the Fund managed by RCAM at such intervals and in such manner as required by the Trustee to ensure that RCAM is complying with the provisions of the Trust Deed and SEBI Regulations.

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RCAM shall observe the above-mentioned powers, duties and obligations. Notwithstanding this, the powers, duties and obligations as stated in the regulations, from time to time, shall prevail upon the powers stated above. As and when there is an addition/deletion/modification in the duties and responsibilities of the AMC due to a change in the Regulations, such additions/deletions/modifications shall be made here, accordingly. The AMC shall not be liable to the Trustee in the event that the Mutual Fund suffers a decline in its Net Asset Value or fails to achieve any increase therein; unless such decline or failure is caused by any acts of commission or omission or by the default or negligence of the AMC, a bonafide error of judgement not being regarded as default or negligence nor as an act of commission or omission. Investment Decisions: The investment decisions are taken by a team comprising of the Chief Investment Officer and Fund Managers based on research reports, market intelligence, analysis of macro and micro economic indicators, market trends etc. Detailed discussions take place among the team members before investments are finally made. Such discussions/ meetings occur more than once during a day if situations warrant viz. major economic or political events for a review of earlier decisions. The Fund Managers along with their rationale record all such investment decisions. The Chief Executive Officer shall be responsible for compliances of all statutory requirements including SEBI Regulations and will supervise investments decisions of Fund Managers taking into consideration the overall interest of the Unitholders and assume responsibility for the day to day and overall Risk Management function of Mutual Fund. Under him Fund Manager(s) will look after investment of the funds of the Scheme(s) in a manner to achieve the investment objective of the Scheme and in the interest of Unitholders. The performance of the Schemes is reviewed by the Board of AMC and Trustees in their periodical meetings. The trustee will review the performance of the scheme on a periodical basis and submit a half yearly report to SEBI on various matters related to compliance and performance of the scheme. They may also compare the performance of the scheme against a benchmark index. The Benchmark Index for Reliance Diversified Power Sector Fund is currently India Power Index managed by IISL as the comparable indices. This benchmark indice may be decided by the AMCs and trustees and any change at a later date shall be recorded and reasonably justified. India Power Index provides regulators, investors and the market intermediaries with an appropriate benchmark that captures the performance of the power segment of the market. Companies selected in the Index have to be Power stocks, which should rank high in terms of market value represented by their market capitalisation and trading frequency. As an example, we provide hereunder the weightage of the Power Scrips in the India Power Index as on February 6, 2004 Scrip Name Industry Market Cap on

06-Feb-2004 Weightage

Bharat Heavy Electricals Ltd.

Electrical Equipment

138705.49 28.32

Reliance Energy Limited (BSES Ltd.)

Power 88401.43 18.05

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Neyveli Lignite Corporation Ltd.

Power 85227.65 17.40

Tata Power Co. Ltd. Power 74142.43 15.14 Siemens Ltd. Electrical

Equipment 29701.95 6.07

ABB Limited (Asea Brown Boveri Ltd.)

Electrical Equipment

27376.44 5.59

Thermax Ltd. Electrical Equipment

8515.32 1.74

Alstom Power India Ltd. Power 7429.63 1.52 CESC Ltd. Power 7272.71 1.49 Crompton Greaves Ltd. Electrical

Equipment 7103.54 1.45

Ahmedabad Electricity Co. Ltd.

Power 6295.88 1.29

Gujarat Industries Power Co. Ltd.

Power 5291.18 1.08

KEC International Ltd. Transmission Tower

2265.39 0.46

Havell's India Ltd. Electrical Equipment

1165.48 0.24

Jyoti Structures Ltd. Transmission Tower

824.47 0.17

Total 489718.99 100.00 The abovementioned India Power Index is only for performance comparison purposes and should not be construed as investment pattern of the Scheme. The scheme shall have the flexibility to invest in stocks that are outside the composition of the index but are within the investment focus of the scheme. The scheme may broadly follow the composition of the index without necessarily tracking it. The Scheme at any point of time will not invest more than 10% of the NAV of the scheme in a single Company. We also submit that the proposed scheme is a sectoral scheme, the investment universe is limited to companies that are operating in the power sector. The scope for diversification could be limited at times. However, given the nature of the scheme, the Mutual Fund may invest upto 100 % of the corpus into debt / money market instruments of Power Sector for a short term period on a defensive consideration."

The trustees reserve the right to change the index if any other appropriate/ suitable index is available at a future date, in accordance with the Regulations. In case of change in the index, it will amount to change in the fundamental attributes of the Scheme. Accordingly, as per Regulation 18(15)(A) of SEBI (Mutual Funds) Regulations, 1996 as amended from time to time, the Trustees shall ensure that no such change shall be carried out unless: - i) A written communication about the proposed change is sent to each unitholder and an

advertisement is given in one English daily newspaper having nationwide circulation as well as in the newspaper published in the language of the region where the Head Office of the Mutual Fund is situated and

28

ii) The unitholders are given an option to exit at the prevailing Net Asset Value without any exit load.

5. In terms of the Investment Management Agreement and the Regulations, the AMC is entitled to a management and advisory fee at the rate of 1.25% of the average daily net assets for net assets upto Rs.100 crore and at the rate of 1.00% for the net assets in excess of Rs.100 crore. For Schemes launched on a No- Load basis, the AMC is entitled to collect an additional management fee of upto 1% of the average net assets outstanding in each financial year and the total management fee shall not exceed the limit stated under the Regulation 52(6) of SEBI. RCAM, in consultation with the Trustees, reserves the right to charge additional management fees. Such ‘additional management fee’ shall be chargeable only till the actual initial expenses borne by the AMC, limited to the maximum extent of 6% of the initial mobilisation , are recovered. 6. Key Personnel of AMC & their relevant experience:

Name Age Designation Educational Qualification Type and Nature of past experience including assignments held during the past 10 years

Mr. Amitabh Chaturvedi 37 Chief Executive Officer B.Com, F.C.A. Over 16 yrs of experience in Banking & Finance 1998-2003 ICICI Bank Limited Head - Retail Channels & Liabilities Group1994-1998 Lloyds Finance Limited Head of Merchant Banking1992-1994 Apple Finance Limited Merchant Banking Division

Mr. Vikrant Gugnani 35 President B.Com (Hons.), C.A. Over 10 years of

experience in diverse functions such as Product Management, Research, Infrastructure, Sales and Marketing. Prior to joining Reliance Capital Asset Management

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Limited he was with Citibank N A as Vice President, Product Head Indonesia – Investment Products. His experience of Citibank in India also includes Product Head India - Investment Products, Investment Counsellor - North, Y2K Project Team Leader and Branch Cash Officer. Prior to this he was an Independent Consultant on Project Consulting & Advisory.

Mr. K. Rajagopal 56 Chief Investment Officer M.A. CAIIB Over 33 years

experience in commercial Banking, treasury and investment operations 2001 till date -Reliance Capital Asset Management Limited Chief Investment Officer Fund Management, 1971-2001State Bank of India - Probationary Officer- International Banking & Loans Syndication Regional Administration of Branches & Business Development General Manager - Treasury- Treasury Operations including Liquidity Management, Investment Operations, Trading,

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Compliance Functions

Mr. Madhusudan Kela 36 Head - Equity B.Com, MMS. Over 13 years experience in Equity Sales & Dealing2001-03Vice President - Reliance Capital Ltd. Contributing to the development of the Mutual Fund (100% owned by RCL) 1998-99 Peregrine Securities Vice President - Equity & Sales Dealing 1996-98UBS Securities - Asst Vice President Equity Sales & Dealing 1994-96Motilal Oswal - Equity Sales

Mr. Ashwani Kumar 35 Fund Manager-Equity B.Sc., MBA Finance Over 10 years of experience1992 - 2003Zurich Asset management Co. India P. LtdSenior Research Analyst

Sunil Singhania 38 Fund Manager-Equity B.Com. CFA, FCA Over 11 Years of experience in Capital Markets 1997 - 2003Advani Share Brokers P LtdDirector - Institutional Sales & Research, Equity Derivatives1994-97Motisons Securities P Ltd.President Instrumental in setting up the broking business, NSE Trading membership, developing the systems.

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Mr. Amit Tripathi 30 Fund Manager-Debt B.Com(H), PGDM Over 7 years experience1999-2003The New India Assurance Co. Limited Assistant Admin Officer - Investment Dept.1998-1999Sun Invest Associates Limited Analyst -Equity Market Operations1997-1998CFS Financial Services Pvt. Limited Equity Dealer

Mr Balkrishna Kini 49 Investor Relations B.Sc. (Hons), LL.B, March 2004 till date Officer Master of Administrative handling Managment Customer Relations

& web initiatives. April 2003 to November 2003UTI AMC

Ltd. Head of Centralized Monitoring of schemes & Administration of UTI Vashi Office. April 2000 to April 2003 Branch Head - UTI Mumbai Main/ JVPD Branches

Mr. Ashutosh Vaidya 31 Company Secretary B.Com, B. L, ACS Over 6 years of & Compliance Officer experience in

Corporate Secretarial, Compliance and Legal functions. Prior to joining Reliance Capital Asset Management Limited he was with Kotak Mahindra Asset Management Limited as Asso-Vice President, Compliance. 2004. With Cholamandalam

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Asset Management Limited. 2002 – 04. Compliance Officer with Bank of Baroda AMC Ltd. 1999 - 2002, with Godrej Industries Limited.

Ms. Geeta Chandran 53 Associate Vice President - B A -Economics, Operations & Settlement Bachelor of Law June 2002 till date Reliance Capital

Asset Management Ltd.

Handling Day to day operations including Investor Relations Department & settlement July 1993 to May 2002Reliance Industries Ltd. Heading Treasury Operations September 1973 to June 1993Bank of America NT & SAOfficer in Charge of Treasury operations

Ms. Sangya Nigam 33 Head- Risk Management B Com (Hons) From MIBM April 2004 till date Certified Financial Risk Manager Reliance Certified Treasury Manager Capital Asset

Management Ltd. From September

2000 to October 2003 Pricewaterhouse Coopers Deputy Manager From June 1998 to August 2000

2000Mecklai Commercial & Financial Services Ltd.

Analyst Mr. Sailesh Raj Bhan 32 Fund Manager -Equity MBA (Finance) CFA

(ICFAI)Over 9 years experience

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in Equity Securities research and analysis 2001-2003Emkay Share & Stock Broker Pvt. Ltd Head - Research1996-2001Shah & Sequeira Invst. Pvt. Ltd Analyst - Equity research 1995-1996ICFAI- Securities Research Center Analyst - Equity research

Mr. Prashant Pimple 28 Fund Manager – Debt MBA (Finance) CTM (ICFAI) Over 5 years experience in Treasury 2003-2004ICICI Bank Ltd Manager- Treasury Investment Advisory Services 2002-2003Bank Of Bahrain and Kuwait, B.S.C Asst Manager- Treasury (Dealing Room) 2000-2002 The Saraswat Co-op Bank Ltd Dealer- Treasury

Mr. Ramesh Rachuri 35 Fund Manager-Debt PGDM, IIM Over 7 years experience in Investment Trading and Financial Markets, September 2004 till date, Reliance Capital Asset Management Limited, April 2001-August 2004, STCI Limited - Dealer , Trading in the

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Indian Debt Market, July 1995 - September 1998, Business Manager World Index PTE Limited , Global Spot Forex Margin Trading , April 1992-June 1992, Assistant Manager Magus Mark eting Credit card Authorisation

Mr. Amitabh Mohanty

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Head – Fixed Income

MBA, IIM Ahmedabad BE (Electrical), IIT Roorkee

Over 9 years experience in Fixed Income Function 1999 – 2005

Alliance Capital Asset Management (India) Private

Limited Head- Fixed Income 1996 – 1999

SBI Funds Management

Limited Managing Fixed Income Portfolios

Chief Executive Officer : Mr. Amitabh Chaturvedi

President: Mr. Vikrant Gugnanai Chief Investment Officer: Mr. K. Rajagopal Head - Equities : Mr. Madhusudhan Kela Head – Fixed Income: Mr. Amitabh Mohanty Compliance Officer: Mr. Ashutosh Vaidya Investor Relations Officer : Mr. Balkrishna Kini

Fund Management Team: Mr. K. Rajagopal* Mr. Madhusudhan Kela* Mr. Amitabh Mohanty * Fund Managers: Equity - Mr. Sunil Singhania*, Mr. Ashwani Kumar*, Sailesh Raj Bhan* Debt - Mr. Amit Tripathi*, Mr. Prashant Pimple*, Mr. Ramesh Rachuri* * Specific details mentioned under Section on Key Personnel above.

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E. AUDITORS: Statutory Auditors to the Scheme Haribhakti & Co. Chartered Accountants 42, Free Press House, Nariman Point, Mumbai - 400 021. Auditors to the Asset Management Company C.C. Chokshi & Co. Chartered Accountants 12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli Mumbai - 400 018 Auditors to the Trustee Company M/s. Malpani & Associates Chartered Accountants 307, Chartered House, Dr. C.H. Street, Near Marine Lines Church, Mumbai - 400 002. F. THE CUSTODIAN The Trustee has appointed Deutsche Bank located at Kodak House, Mumbai-400 023, as the Custodian of the securities that are bought and sold under the Scheme. A Custody Agreement has been entered with Deutsche Bank in accordance with SEBI Regulations. The Custodian is approved by SEBI under registration no. IN/CUS/003 to act as Custodian for Mutual Funds. In terms of Custody Agreement dated September 6, 1995 between the Mutual Fund and Deutsche Bank, the Custodian shall, inter alia: • Provide post-trading and custodial services to the Mutual Fund; • Keep securities and other instruments belonging to the Scheme in safe custody; • Ensure smooth inflow/outflow of securities and such other instruments as and when necessary, in the best interests of the unitholders; • Ensure that the benefits due to the holdings of the Mutual Fund are recovered; and • Be responsible for loss of or damage to the securities due to negligence on its part or on the part of its approved agents. The Custodian will charge the Mutual Fund, portfolio fee, transaction fee and out-of -pocket expenses in accordance with the terms of the Custody Agreement and as per any modification made thereof from time to time. G. THE REGISTRAR RCAM has appointed M/s. Karvy Computershare Pvt. Limited to act as the Registrar and Transfer Agent to the Scheme. M/s. Karvy Computershare Pvt. Limited (KCSPL) having their office at Karvy Plaza, 21, Road No. 4, Street No.1, Banjara Hills, Hyderabad 500 034, is a Registrar and Transfer Agent registered with SEBI under registration no. INR000000221. RCAM and the Trustee have satisfied themselves, after undertaking appropriate due diligence measures, that they can provide the services required and have adequate facilities, including systems facilities and back up, to do so. The Trustee has also laid down broad parameters for supervision of the Registrar. As Registrar to the Scheme, KCSPL will accept and process

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investor's applications, handle communications with investors, perform data entry services, despatch Account Statements and also perform such other functions as agreed, on an ongoing basis. The Registrar is responsible for carrying out diligently the functions of a Registrar and Transfer Agent and will be paid fees as set out in the agreement entered into with it and as per any modification made thereof from time to time.

V. INVESTMENT FOCUS, OBJECTIVES, POLICIES & LIMITATIONS OF THE SCHEME

1. INVESTMENT OBJECTIVE: The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of power and other companies associated with the power sector. Power is the critical infrastructure on which modern economic activity is fully dependent. In India, only around 55% of the households in India have access to electricity. Most of those who have access do not get uninterrupted reliable supply. With the Indian economy poised for a healthy growth rate going ahead, the Indian power sector will have to serve as the bedrock for supporting this growth. The recently introduced Electricity Supply Act, 2003 passed in June 2003 seeks to bring about a qualitative transformation of the electricity sector by creating a liberal framework to enable swift development of the Indian power sector by consolidating and replacing a number of older legislations on electricity. Some of the main objectives of the Act are ‘to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of the electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies’. Reliance Power Fund proposes to invest in various segments of the Indian power sector. Broadly, power sector companies can be segregated into those operating in the following genres: 1. Power Generation, including those companies that are engaged in renovation and

modernization of existing plants'. 2. Power Transmission 3. Power Distribution, including retail supply of power 4. Power Trading 5. Financing / Funding power projects 6. Power Equipment 7. Power Technology 8. Emerging genres that will evolve as the Indian power sector develops

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The AMC will have the discretion to completely or partially invest in any of the type of securities stated above with a view to maximize the returns or on defensive considerations. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends. However the debt part of the portfolio will not necessarily be invested in the power sector, it would include other debt and money market instruments as specified in investment strategy. 2 ASSET ALLOCATION PATTERN: Instrument

Asset Allocation Risk

Minimum

Most Likely

Maximum

Equities and Equity related Securities

0 % 80% 100 % Medium to High

Debt and Money Market Instruments with an average maturity of 5-10 yrs

0 % 20% 100 % Low to Medium

Securitised debt upto 100% of the corpus.

The above Asset Allocation Pattern is only indicative. The investment manager in line with the investment objective may alter the above pattern for short-term period and on defensive consideration. The Fund will invest in equity securities whenever the equity market and shares from the power sector are expected to do well. However, whenever the equity market is not expected to do well, the Fund will shift its focus in debt, which in extreme cases of bearish equity market can go upto 100%. The samples of situations for asset allocation could be: 1. Equity market is performing reasonable well and power sector shares are available at attractive valuations, then the asset allocation could be as follows: Equity Debt 80% 20% 2. Equity market is lackluster. There is no clarity of movement of market and participation is low. power Sector shares are not attracting much attention, then the asset allocation could be as follows: Equity Debt 50% 50% 3. Equity market is trading at stretched valuations. Shares from power sector have risen sharply and there is likelihood of a fall in equity market due to social, political or economic adverse development, then the asset allocation could be as follows: Equity Debt

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10% 90% 3. BENCHMARK INDEX: India Power Index 4. INVESTMENT STRATEGY: The proportion of investment between equity and debt will be decided based on the view of the fund manager on anticipated movement in both debt as well as equity markets. The Fund manager can also take aggressive calls on the market by going upto 100% in equity or 100% in debt at any point of time or any other appropriate ratio depending upon his view. The allocation between debt and equity will be decided based upon the prevailing market conditions, macro economic environment, the performance of the corporate sector, the equity market and other considerations. To achieve its primary objective as mentioned above the fund would under normal circumstances shall invest at least 65% of the value of its total net assets either debt or equity securities in the Power Sector and associated companies of said sector. These securities could include: ? Equity and equity related securities including convertible bonds and debentures and

warrants carrying the right to obtain equity shares. ? Money market instruments permitted by SEBI/ RBI, having maturities upto 1 year in call

money market instruments as may be provided by the RBI. ? Certificate of Deposits (CDs) & Commercial paper (CPs) ? In Securitised Debt upto 100% of the corpus ? The non convertible part of convertible securities ? Any other domestic fixed income securities ? ADRs / GDRs issued by Indian power sector companies, subject to guidelines issued by

RBI / SEBI ? Foreign debt and equity subject to guidelines issued by RBI /SEBI ? Derivatives like Interest rate swaps, Forward Rate agreements, stock futures, index

futures, and other such instruments as permitted by RBI /SEBI ? Any other instruments as allowed by the Regulations from time to time. The Fund may also enter into “Repo”, “Stock Lending” or such other transactions as may be allowed to Mutual Funds from time to time. For purposes of this Offer Document, fixed Income securities includes, but is not confined to debt obligations of the statutory bodies, public sector undertakings, Financial Institutions, public and private sector banks and corporate entities. The Scheme reserves the right to invest it’s entire allocation in debt and money market securities in any one of the fixed Income security classes. Investments in rated fixed Income securities will be in securities rated by at least one recognized rating agency. Investments in unrated securities will be made with the approval of the investment committee of RCAM, within the parameters laid down by the board of directors of the AMC & the Trustee.

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Money market securities includes but are not limited to treasury bills, commercial paper of public sector undertakings and private sector corporate entities, inter bank call and notice money, certificates of deposit of scheduled commercial banks and Financial Institutions, securitised debt, bills of exchange/promissory notes of public and private sector entities (co-accepted by banks) and any other money market securities as may be permitted by SEBI/RBI. From time to time, it is possible that the portfolio may hold cash. The Scheme may also enter into repurchase and reverse repurchase obligations in all securities held by them as per the guidelines and regulations applicable to such transactions. Further, the Scheme intends to participate in securities lending as permitted within the Regulations. It is the intention of the scheme to trade in the derivatives market as per the Regulations. Further, the Scheme intends to participate in Securities lending as per the Regulations. The scheme also intends to invest in foreign debt securities, as and when permitted by SEBI and in accordance with the Regulations then prevailing. Exposure to foreign securities: The scheme may have an exposure of upto 90% of its net assets in foreign securities. The AMC with a view to protecting the interests of the investors may increase exposure in foreign securities upto 100% as deemed fit from time to time. However, the exposure in foreign securities would not exceed the maximum amount permitted from time to time. Investment in overseas financial assets SEBI vide its circular nos. MFD/CIR/17/419/02 dated March, 30, 2002 and MFD/CIR/18/21826/2002 dated November 7, 2002 has permitted mutual funds to invest in overseas financial assets. It is the investment manager’s belief that overseas securities offer new investment and portfolio diversification opportunities into multi-market and multi-currency products. However, such investments also entail additional risks. Offshore investment will be made subject to any/ all approvals / conditions thereof as may be stipulated by SEBI/ RBI/ other regulatory authorities. The fund may, where necessary, appoint other intermediaries of repute as advisors, sub-custodians, etc. for managing and administering such investments. The appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the permissible ceilings of expenses. The fees and expenses would illustratively include, besides the investments management fees, custody fees and costs, fees of appointed advisors and sub managers, transaction costs and overseas regulatory costs.

Risk factors of investment in overseas financial assets To the extent that the assets of the schemes will be invested in securities denominated in foreign currencies, the Indian rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian rupee (if Indian rupee appreciates against these foreign currencies). The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment. The scheme may have to pay applicable taxes on gains from such investment.

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As regards foreign securities that are traded on exchanges that are not located in India basis of valuation will depend on the time zone of the respective country. For exchanges located in countries, with time zone earlier than India, the NAV will be calculated based on the closing price of the foreign security and the prevailing exchange rate on that date. For exchanges located in countries, with time zone later than India, the NAV will be calculated based on the closing price of the foreign security and the prevailing exchange rate of the previous date. Subject to the Regulations, the investments may be in securities which are listed or unlisted, secured or unsecured, rated or unrated, having variable maturities, and acquired through secondary market purchases, RBI auctions, open market sales conducted by RBI etc., Initial Public Offers (IPOs), other public offers, placements, rights, offers, negotiated deals, etc To avoid duplication of portfolios and to reduce expenses, the Scheme may invest in any other schemes of the Fund to the extent permitted by the Regulations. In such an event, RCAM will not charge management fees on the amounts of the Schemes so invested, unless permitted by the Regulations. Securities Lending by the Fund: In accordance with the Regulations and applicable guidelines, the Trustees have given permission to the Fund to engage in stock lending activities. Accordingly, the Scheme may lend securities to the extent of its entire portfolio of scheme to any borrower through an Approved Intermediary. The Securities will be lent by the Approved Intermediary against collateral received from borrower, for a fixed period of time, on expiry of which the securities lent will be returned by the borrower. It may be noted that this activity would have the inherent probability of collateral value drastically falling in times of strong downward market trends, resulting in inadequate value of collateral until such time as that diminution in value is replenished by additional security. It is also possible that the borrowing party and /or the approved intermediary may suddenly suffer severe business setback and become unable to honour its commitments. This along with a simultaneous fall in value of collateral would render potential loss to the Scheme. Besides, there can also be temporary illiquidity of the securities that are lent out and the scheme may not be able to sell such lent out securities. 5. Trading in Derivatives: SEBI vide its circular no. MFD/CIR/011/061/2000 dated February 1, 2000 has permitted all the mutual funds to participate in the derivatives trading only for hedging and portfolio rebalancing subject to observance of guidelines issued by SEBI in this behalf. Pursuant to this, the mutual funds may use various derivative and hedging products from time to time, as would be available and permitted by SEBI, in an attempt to protect the value of the portfolio and enhance Unitholders’ interest . Accordingly, the Fund may use derivative instruments for hedging and portfolio rebalancing like Stock Index Futures, Options on Stocks and Stock Indices, Interest Rate Swaps, Forward Rate Agreements or other such derivative instruments as may be introduced from time to time, as permitted by SEBI and as approved by the Trustees.

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The following information provides a basic idea as to the nature of the derivative instruments proposed to be used by the Fund and the benefits and risks attached there with. i) Interest Rate Swaps and Forward rate Agreements Benefits Bond markets in India are not very liquid. Investors run the risk of illiquidity in such markets. Investing for short-term periods for liquidity purposes has its own risks. Investors can benefit if the Fund remains in call market for the liquidity and at the same time take advantage of fixed rate by entering into a swap. It adds certainty to the returns without sacrificing liquidity. Illustration The following are illustrations how derivatives work: Basic Structure of an Interest Rate Swap

? Floating Interest Rate

? Fixed Interest Rate In the above illustration, Basic Details: Fixed to floating swap Notional Amount: Rs. 5 Crores Benchmark: NSE MIBOR Deal Tenor: 3 months (say 91 days) Documentation: International Securities Dealers Association (ISDA). Let us assume the fixed rate decided was 10%. At the end of three months, the following exchange will take place: Counter party 1 pays: compounded call rate for three months, say 9.90% Counter party 2 pays fixed rate: 10% In practice, however, the difference of the two amounts is settled. Counter party 2 will pay: Rs 5 Crores *0.10%* 91/365 = Rs. 12,465.75 Thus the trade off for the Fund will be the difference in call rate and the fixed rate payment and this can vary with the call rates in the market. Please note that the above example is given for illustration purposes only and the actual returns may vary depending on the terms of swap and market conditions. ii) Index Futures: Benefits a) Investment in Stock Index Futures can give exposure to the index without directly buying the individual stocks. Appreciation in Index stocks can be effectively captured through investment in Stock Index Futures. b) The Fund can sell futures to hedge against market movements effectively without actually selling the stocks it holds. The Stock Index futures are instruments designed to give exposure to the equity market indices. The Stock Exchange, Mumbai and The National Stock Exchange have started trading in index futures of 1, 2 and 3-month maturities. The pricing of an index future is the function of the underlying index and interest rates. Illustration Spot Index: 1070 1 month Nifty Future Price on day Rs. 1: 1075 Fund buys 100 lots

Counter Party 1 Counter Party 2

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Each lot has a nominal value equivalent to 200 units of the underlying index Let us say that on the date of settlement, the future price = Closing spot price = Rs. 1085 Profits for the Fund = (Rs. 1085-Rs. 1075)* 100 lots * 200 = Rs 200,000 Please note that the above example is given for illustration purposes only. The net impact for the Fund will be in terms of the difference between the closing price of the index and cost price (ignoring margins for the sake of simplicity). Thus, it is clear from the example that the profit or loss for the Fund will be the difference of the closing price (which can be higher or lower than the purchase price) and the purchase price. The risks associated with index futures are similar to the one with equity investments. Additional risks could be on account of illiquidity and hence mispricing of the future at the time of purchase. iii) Buying Options: Benefits of buying a call option: Buying a call option on a stock or index gives the owner the right, but not the obligation, to buy the underlying stock / index at the designated strike price. Here the downside risks are limited to the premium paid to purchase the option. Illustration For example, if the fund buys a one-month call option on Satyam Computers at a strike of Rs. 150, the current market price being say Rs.151. The fund will have to pay a premium of say Rs. 15 to buy this call. If the stock price goes below Rs. 150 during the tenure of the call, the fund avoids the loss it would have incurred had it straightaway bought the stock instead of the call option. The fund gives up the premium of Rs. 15 that has to be paid in order to protect the fund from this probable downside. If the stock goes above Rs. 150, it can exercise its right and own Satyam Computers at a cost price of Rs. 150, thereby participating in the upside of the stock. Benefits of buying a put option Buying a put option on a stock originally held by the buyer gives him/her the right, but not the obligation, to sell the underlying stock at the designated strike price. Here the downside risks are limited to the premium paid to purchase the option. Illustration For example, if the fund owns Satyam computers and also buys a three month put option on Satyam Computers at a strike of Rs. 150, the current market price being say Rs.151. The fund will have to pay a premium of say Rs. 12 to buy this put. If the stock price goes below Rs. 150 during the tenure of the put, the fund can still exercise the put and sell the stock at Rs. 150, avoiding therefore any downside on the stock below Rs. 150. The fund gives up the fixed premium of Rs. 12 that has to be paid in order to protect the fund from this probable downside. If the stock goes above Rs. 150, say to Rs. 170, it will not exercise its option. The fund will participate in the upside of the stock, since it can now sell the stock at the prevailing market price of Rs. 170. (iv) Writing Options (a) Benefits of writing an option with underlying stock holding (Covered call writing) Covered call writing is a strategy where a writer (say the fund) will hold a particular stock, and sell in the market a call option on the stock. Here the buyer of the call option now has the right to buy this stock from the writer (the fund) at a particular price which is fixed by the contract (the strike price). The writer receives a premium for selling a call, but if the call option is exercised, he has to sell the underlying stock at the strike price. This is advantageous if the strike price is the level at which the writer wants to exit his holding / book profits. The writer effectively gains a fixed

43

premium in exchange for the probable opportunity loss that comes from giving up any upside if the stock goes up beyond the strike price. Illustration Let us take for example Infosys Technologies, where the fund holds stock, the current market price being Rs. 3600. The fund manager holds the view that the stock should be sold when it reaches Rs. 3700. Currently the one month 3700 calls can be sold at say Rs.150. Selling this call gives the call owner the right to buy from the fund Infosys at Rs. 3700. Now the fund by buying / holding the stock and selling the call is effectively agreeing to sell Infosys at Rs. 3700 when it crosses this price. So the fund is giving up any possible upside beyond Rs. 3700. However, the returns on the fund are higher than what it would have got if it just held the stock and decided to sell it at Rs. 3700. This is because the fund by writing the covered call gets an additional Rs. 150 per share of Infosys. In case the price is below Rs. 3700 during the tenure of the call, then it will not be exercised and the fund will continue to hold the shares. Even in this case the returns are higher than if the fund had just held the stock waiting to sell it at Rs. 3700. (b) Benefits of writing put options with adequate cash holding: Writing put options with adequate cash holdings is a strategy where the writer (say, the fund) will have an amount of cash and will sell put options on a stock. This will give the buyer of this put option the right to sell stock to the writer (the fund) at a pre-designated price (the strike price). This strategy gives the put writer a premium, but if the put is exercised, he has to buy the underlying stock at the designated strike price. In this case the writer will have to accept any downside if the stock goes below the exercise price. The writer effectively gains a fixed premium in exchange for giving up the opportunity to buy the stock at levels below the strike price. This is advantageous if the strike price is the level at which the writer wants to buy the stock Illustration Let us take, for example, that the fund wants to buy Infosys Technologies at Rs. 3500, the current price being Rs. 3600. Currently the three month 3500 puts can be sold at say Rs. 100. Writing this put gives the put owner the right to sell to the fund Infosys at Rs. 3500. Now the fund by holding cash and selling the put is agreeing to buy Infosys at Rs. 3500 when it goes below this price. The fund will take on itself any downside if the price goes below Rs. 3500. But the returns on the fund are higher than what it would have got if it just waited till the price reached this level and bought the stock at Rs. 3500, as per its original view. This is because the fund by writing the put gets an additional Rs. 100 per share of Infosys. In case the price stays above Rs. 3500 during the tenure of the put, then it will not be exercised and the fund will continue to hold cash. Even in this case the returns are higher than if the fund had just held cash waiting to buy Infosys at Rs. 3500. 6. Debt Market in India: Poised for a Major Growth Debt Market in India: The Indian Debt market is facing major shift in the recent times. The substantial growth in Mutual Fund collections in the past few years have provided an easy route for the investors to channelise their savings into the debt market, which otherwise is largely dominated by Banks and other Institutional investors. At present, the Indian debt market is dominated by issues of Central Government bonds, Coporate Debentures and PSU Bonds. The new Securitised instruments are also very attractive in the primary market. The other instruments available for investment are Commercial Papers, Certificate of Deposits, Government guaranteed bonds, etc. Brief details about the instruments are given below as on January 13, 2006:

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Instruments Listed/ Unlisted Current Yield Range

Liquidity Risk profile

As on January 13, 2006

Central Government Securities

listed 6.10% to 7.40% High Low

Corporate Debentures / PSU Bonds

listed 7% to 7.65% Moderate Low

CPs/CDs (short term) Unlisted 6.50% to 7.30% high Low Call Money unlisted 6.00% to 6.75% high Low Mibor linked Papers listed 20-40 bps low moderate

A brief description about yields presently available on Central Govt. Securities /Bonds & Debentures of various maturities is as follows: Annualised yields (as on January 13, 2006) are:

Yrs < 1yr 2-7yrs 7-11yrs 11-20 yrs Central Government securities/ Treasury Bills

6% to 6.25% 6.40%-6.94% 6.94% to 7.23%

7.23% to 7.50

Debentures/ Bonds (AAA rated)

6.50% to 7.30%

7.00% to 7.55%

7.55% to 7.75%

NA

The price and yield on various debt instruments fluctuate from time to time depending upon the macro economic situation, inflation rate, overall liquidity position, foreign exchange scenario, etc. Also, the price and yield varies according to maturity profile, credit risk etc. SCHEME SPECIFIC RISK FACTORS: ? The scheme being sector specific will be affected by the risks associated with the Power

sector. ? Trading volumes and settlement periods may restrict liquidity in equity and debt

investments. ? Investment in Debt is subject to price, credit, and interest rate risk. ? The Fund may invest in overseas debt / equities / ADR’s / GDR’s with the approval of

RBI/SEBI, subject to such guidelines as may be issued by RBI/SEBI. The net assets, distributions and income of the scheme may be affected adversely by fluctuations in the value of certain foreign currencies relative to the Indian Rupee to the extent of investments in these securities. Repatriation of such investment may also be affected by changes in the regulatory and political environments. The scheme’s NAV may also be affected by a fluctuation in the general and specific level of interest rates internationally, or the change in the credit profiles of the issuers.

? Since the investments in the Scheme will be in securities from the Power sector, the scheme will remain exposed to the ups and downs of the Power sector.

Risk with regard to non-diversification of the portfolio:

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Since the proposed scheme is a sectoral scheme, the investment universe is limited to companies that are operating in the power sector. The scope for diversification could be limited at times. There could be instances the investment portfolio might have an unusually high exposure to a few stocks. However, given the nature of the scheme, the Mutual Fund may invest upto 100 % of the corpus into debt / money market instruments of Power Sector for a short term period on a defensive consideration. Risks attached with the use of derivatives: As and when the schemes trade in the derivatives market there are risk factors and issues concerning the use of derivatives that investors should understand derivative products are specialized instruments that require investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself. Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counter party”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have a large impact on their value. Also, the market for derivative instruments is nascent in India. Risks associated with stock lending The risks in lending portfolio securities, as with other extensions of credit, consist of the failure of another party, in this case the approved intermediary, to comply with the terms of agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure to comply can result in the possible loss of rights in the collateral put up by the borrower of the securities, the inability of the Approved Intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. Advantages and Risks attached with investments in ADRs/GDRs: It is AMC's belief that the investment in ADRs/GDRs/overseas securities offer new investment and portfolio diversification opportunities into multi-market and multi-currency products. However, such investments also entail additional risks. Such investment opportunities may be pursued by the AMC provided they are considered appropriate in terms of the overall investment objectives of the schemes. Since the Scheme would invest only partially in ADRs/ GDRs/overseas securities, there may not be readily available and widely accepted benchmarks to measure performance of the Scheme. • To manage risks associated with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management including hedging and in accordance with conditions as may be stipulated by SEBI/RBI from time to time. • To the extent that the assets of the Schemes will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by the changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital also may be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of the other restrictions on investment.

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• Offshore investments will be made subject to any/all approvals, conditions thereof as may be stipulated by SEBI/RBI and provided such investments do not result in expenses to the Fund in excess of the ceiling on expenses prescribed by and consistent with costs and expenses attendant to international investing. The Fund may, wherever necessary, appoint other intermediaries of repute as advisors, custodian/sub-custodians etc. for managing and administering such investments. • The appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the permissible ceilings of expenses. The fees and expenses would illustratively include, besides the investment management fees, custody fees and costs, fees of appointed advisors and sub-managers, transaction costs, and overseas regulatory costs. 7. PORTFOLIO TURNOVER : Given the nature of the scheme, the portfolio turnover ratio may be very high and AMC may change the portfolio according to Asset Allocation, commensurate with the investment objectives of the scheme. The effect of higher portfolio turnover could be higher brokerage and transaction costs. 8. Investment Limitations/Restrictions: The investment policy of the scheme comply with the rules, regulations and guidelines laid out in SEBI (Mutual Funds) Regulations, 1996. As per the Regulations, specifically the Seventh Schedule, the following investment limitations are currently applicable: 1. The Scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency. This investment limit may be extended to 20% of the NAV of the Scheme with the approval of the of the Investment Committee based on the parameter set by the Board of Trustees and the AMC. Provided that this limit shall not be applicable to investments in money market instruments. Provided further that investment within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI. 2. The Scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total of such instruments shall not exceed 25% of the NAV of the Scheme. All such investments will be made with the prior approval of the Investment Committee of RCAM. Note: Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under clause 1 and 2 above. Further, it is clarified that the investment limits mentioned in (1) and (2) above are applicable to all debt securities which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either central or state government. Government securities issued by central/state government or on its behalf by RBI are exempt from the above referred investment limits. 3. The Mutual Fund under all its schemes taken together will not own more than 10% of any companies paid up capital carrying voting rights. 4. Transfers of investments from one scheme to another scheme in the Mutual Fund shall be allowed only if:

a) Such transfers are done at the prevailing market price for quoted instruments on "spot basis"; Explanation: "spot basis" shall have the same meaning as specified by the stock exchange for spot transactions: and

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b) The securities so transferred shall be in conformity with the investment objectives & policies of the Scheme to which such transfer has been made

5. The initial issue expenses in respect of the Scheme may not exceed six per cent of the funds raised under that scheme 6. The scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate interscheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund. [Provided that this clause shall not apply to any fund of funds scheme.] 7. The fund may buy and sell securities on the basis of deliveries and will not make any short sales or engage in carry forward transactions or badla finance or use funds in option trading. Provided that mutual funds shall enter into derivative transactions in a recognised stock exchange for the purpose of hedging and portfolio balancing, in accordance with the guidelines issued by SEBI. 8. The Fund shall get the securities purchased transferred in the name of the Fund on account of the concerned scheme, wherever investments are intended to be of a long-term nature. 9. The Mutual Fund scheme shall not make any investment in: • Any unlisted security of an associate or group company of the sponsor • Any security issued by way of private placement by an associate or group company of the sponsor • The listed securities of group companies of the sponsor which is in excess of 25% of the net assets of the scheme. 10. Pending deployment of funds of the scheme in securities in terms of the investment objectives and policies of the scheme, the Mutual Fund can invest the fund of the scheme in short term deposits of scheduled commercial banks. The investments in short term deposits of scheduled commercial banks will be reported to the trustees along with the reasons for the investment which, interalia, would include comparison with the interest rates offered by other scheduled commercial banks. Further, the RCAM will ensure that the reasons for such investments are recorded in the manner prescribed in SEBI Circular MFD/CIR/6/73/2000 dated July 27, 2000. 12. No term loans for any purpose will be advanced by the Scheme. 13. The Fund shall not invest more than 5% of its NAV in the unlisted equity shares or equity related instruments. 14. The AMC may invest in the Scheme either during the New Fund Offer or subsequently. However, it shall not charge any investment management fee on such amounts invested by it. 15. In case any company has invested more than 5% of the net asset value of a scheme, the investment made by that scheme or by any other scheme of the same mutual fund in that company or its subsidiaries, if any, shall be brought to the notice of the Trustees by RCAM and be disclosed in the half-yearly and annual accounts with justification for such investment provided that the latter investment has been made within one year of the date of the former investment calculated on either side. 16. The Scheme shall not invest more than 10% of its NAV in equity shares/equity related instruments of any company or listed securities or units of venture capital funds and this limit of 10% shall not be applicable for investments in sector/industry specific scheme. However, the Scheme at any point of time will not invest more than 10% of the NAV of the Scheme in a single company. OR The investment by a sector specific scheme shall be in accordance with the weightage of this scrips in the specific index as disclosed in the Offer Document. In the case

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of sector/ industry specific scheme, the upper ceiling on investments shall be in accordance with the weightage of the scrips in the respective Sectoral index/ sub-index as disclosed in the offer document or 10% of the NAV of the scheme, whichever is higher. 17. RCAM shall not undertake any other business except that permitted under the Regulations. RCAM shall meet with the capital adequacy requirements, if any, separately for each of the separate activity, if any undertaken by the AMC and obtain separate approval, if necessary under the Regulations. 18. The Scheme will not invest in a fund of funds Scheme. 19. The Mutual Fund shall not invest more than 10% of its Net Assets as on January 31st of each relevant year, in foreign equity securities. (SEBI/IMD/CIR No.7/5573/04). 20. The aggregate inter scheme investment made by all schemes under the same management or in schemes under the management of any other AMC shall not exceed 5% of the NAV of the mutual fund. No fees shall be charged for investing in other schemes of the fund or any other mutual fund. At RMF, to ensure robust risk management and adequate portfolio diversification internal Investment policy for various debt schemes has been framed. The investment policy at RMF specifies limits both on overall basis (across all schemes) as well as on individual scheme level. Guidelines for following parameters for liquid as well as non liquid schemes has been specified in the policy: 1. Eligible Instruments: Defines the eligible instruments where the scheme can invest 2. Minimum Liquidity: Defines the instruments considered as liquid instruments and the minimum investments in these instruments as a percentage of total net assets 3. Maximum Illiquid component: Defines the instruments considered as illiquid and the maximum investment that can be made in these instruments as a percentage of net assets. 4. Rating: Defines minimum and/ or maximum investment in a particular rating as a percentage of total portfolio. 5. Maturity: Defined the weighted average maturity of a portfolio. Also defines the weighted average maturity, maximum and maturity for certain asset types like corporate bond, PTCs, Gilts etc All the Schemes investment will be in transferable securities (whether in capital markets or money markets or in privately placed debentures or securitised debts or bank deposits or money at call). All investment restrictions stated above shall be applicable at the time of making investment. The Scheme will not enter into any transaction, which exposes it to unlimited liabilities or results in the encumbering of its assets in any way so as to expose them to unlimited liability. These investment limitations / parameters as expressed / linked to the net asset / net asset value / capital, shall in the ordinary course, apply as at the date of the most recent transaction or commitment to invest. Changes do not have to be effected merely because of appreciation or depreciation in value or by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any scheme of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason outside the control of the Fund, any such limits would thereby be breached. If these limits are exceeded for reasons beyond its control, AMC shall adopt as a priority objective the remedying of that situation, taking due account of the interests of the Unitholders.

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The Trustee Company in consultation with AMC may alter these above stated limitations from time to time, and also to the extent the Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments in order to achieve its investment objectives & policies. As such, all investments of the Scheme will be made in accordance with the Regulations including Schedule VII thereof and the Fundamental Attributes of this Scheme. The investment in Foreign equity Securities shall be in accordance with SEBI Regulations. 9. Fundamental Attributes: Notwithstanding the above, the Trustees, in accordance with Regulation 18(15)(A) of the SEBI (Mutual Funds) Regulations, 1996, ensure that no change in the fundamental attributes of any Scheme or the Trust or fees and expenses payable or any other change which would modify the Scheme and affect the interest of the unit holders, shall be carried out unless : - i) A written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in the newspaper published in the language of the region where the Head Office of the Mutual Fund is situated and ii) The unit holders are given an option to exit at the prevailing Net Asset Value without any exit load. For the purposes of this section, "fundamental attributes" of the scheme shall mean: (i) Type of scheme: An open-ended Power Sector Scheme (ii) Investment Objectives & Policies: The primary investment objective of the scheme is to seek to generate continuous returns by actively investing in equity / equity related securities or fixed income securities of power and other associated companies. Investment Pattern and Investment Objectives is provided at section V. (iii) Terms of Issue: Liquidity provisions such as repurchase/redemption of units as defined in ‘Redemption of Units'. Aggregate Fees and expenses charged to the Scheme as stated in section VII point no. C-2 "Recurring Expenses of the Scheme" (As % of Average daily Net Assets) / as permitted by the Regulations. Fundamental Attributes will not cover such actions of the Trustees of the Mutual Fund or the Board of Directors of the Asset Management Company, made in order to conduct the business of the Trust, the Scheme or the Asset Management Company, where such business is in the nature of discharging the duties and responsibilities with which they have been charged. Nor will it include changes to the Scheme made in order to comply with changes in Regulations. None of the actions of the Trustees of the Mutual Fund or the Board of Directors of the Asset Management Company shall amount to a change in the fundamental attributes of the Scheme as described herein. 10. Underwriting by the Scheme: Subject to SEBI Regulations, the Scheme may also undertake underwriting activities in order to augment its income, after the Mutual Fund obtains a certificate of registration in terms of the Securities and Exchange Board of India (Underwriters) Rules and Securities and Exchange Board of India (Underwriters) Regulations 1993 authorising it to carry on activities as underwriters. The total underwriting obligations of the Scheme, at any time, shall not exceed the total value of the corpus of the Scheme together with undistributed profits lying to the credit of the Scheme. The decision to take up any underwriting commitment shall be made as if the Scheme is actually investing in that particular security. As such, all investment restrictions and prudential guidelines relating to

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investments, individually and in aggregate as mentioned in SEBI regulations shall, in so far as may be applicable, apply to underwriting commitments which may be undertaken under the Scheme. 11. Borrowing by the Mutual Fund: To meet the temporary liquidity needs of the Scheme for the purpose of repurchase, redemption, or payment of income /dividend to the unit holders, the Scheme may borrow upto 20% of its net assets for a period of upto six months or as may be permitted by the pertinent rules and regulations. Loans may be obtained from any entity / organisation which are not specifically debarred to give loans to Mutual Funds and also loan is available from such entity / organisation at competitive terms. However, if loan is obtained from any associates such loans will be obtained only at extremely competitive terms at equal to or lower than market rates. These loans may be secured by securities or assets of the Scheme pledged to such entity / organisation. Borrowing by the Mutual Fund on account of the Scheme will tend to increase the impact of investment gains and losses on the NAV of the Scheme. There were no borrowings for the financial year ended March 31, 2002, March 31, 2003 and March 31, 2004 under any of the schemes of RMF. There were borrowings for the year ended March 31, 2005. 12. Computation of Net Asset Value: The Net Asset Value (NAV) of the Units will be determined daily or as prescribed by the Regulations. The NAV shall be calculated in accordance with the following formula, or such other formula as may be prescribed by SEBI from time to time.

Market/Fair Value of Scheme's Investments + Receivables + Accrued Income + Other Assets - Accrued Expenses- Payables- Other Liabilities

NAV= ________________________________________________________________

Number of Units Outstanding NAV Information: The NAV of the Scheme will be calculated and declared by the Fund on every Working Day. The information on NAV may be obtained by the Unitholders, on any day from the office of the AMC / the office of the Registrar in Hyderabad or any of the other Designated Investor Service Centres. The NAV shall be published in two daily newspapers on a daily basis as per the Regulations. Investors may also obtain information on the purchase /sale price for a given day on any Working Day from the office of the AMC / the office of the Registrar in Hyderabad/ any of the other Designated Investor Service Centres. For any NAV information, investor may also call our Touchbase customer service centre at 3030 1111, callers outside India, please dial 91-40-30301111. 13.Valuation of Assets: The NAV of the Units of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation date. The Fund shall value its investments according to the valuation norms, as specified in Schedule VIII of the Regulations, or such norms as may be prescribed by SEBI from time to time. The broad Valuation norms are detailed below: 1. Traded Securities: (i) The securities shall be valued at the last quoted closing price on the stock exchange.

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(ii) When the securities are traded on more than one recognised stock exchange, the securities shall be valued at the last quoted closing price on the stock exchange where the security is principally traded. (iii) When on a particular valuation day, a security has not been traded on the Principal stock exchange, the value at which it is traded on another stock exchange may be used. (iv) When a security (other than debt securities) is not traded on any stock exchange on a particular valuation day, the value at which it was traded on the selected stock exchange, as the case may be, on the earliest previous day may be used provided such date is not more than thirty days prior to valuation date. When a debt security (other than Government Securities) is not traded on any stock exchange on any particular valuation day, the value at which it was traded on the principal stock exchange or any other stock exchange, as the case may be, on the earliest previous day may be used provided such date is not more than fifteen days prior to valuation date. When a debt security (other than Government Securities) is purchased by way of private placement, the value at which it was bought may be used for a period of fifteen days beginning from the date of purchase. 2. Thinly Traded Securities: (i) Thinly Traded Equity/Equity Related Securities: "When trading in an equity/equity related security (such as convertible debentures, equity warrants, etc.) in a month is both less than Rs. 5 lakhs and the total volume is less than 50,000 shares, it shall be considered as a thinly traded security and valued accordingly". For example, if the volume of trade is 100,000 and value is Rs. 400,000, the share does not qualify as thinly traded. Also if the volume traded is 40,000, but the value of trades is Rs. 600,000, the share does not qualify as thinly traded. In order to determine whether a security is thinly traded or not, the volumes traded in all recognised stock exchanges in India may be taken into account. (ii) Thinly Traded Debt Securities: A debt security (other than Government Securities) shall be considered as a thinly traded security if on the valuation date, there are no individual trades in that security in marketable lots (currently Rs 5 crore) on the principal stock exchange or any other stock exchange. A thinly traded debt security as defined above would be valued as per the norms set for non-traded debt security. 3. Non Traded Securities: When a security (other than Government Securities) is not traded on any stock exchange for a period of thirty days prior to the valuation date, the scrip must be treated as a 'non traded' security. Valuation Of Non-Traded / Thinly Traded Securities Non traded/ thinly traded securities shall be valued "in good faith" by the AMC on the basis of the valuation principles laid down below: (i) Non-traded / thinly traded equity securities: (a) Based on the latest available Balance Sheet, net worth shall be calculated as follows: (b) Net Worth per share = [share capital + reserves (excluding revaluation reserves) - Misc. expenditure and Debit Balance in P&L A/c] Divided by number of Paid up Shares. (c) Average capitalisation rate (P/E ratio) for the industry based upon either BSE or NSE data (which should be followed consistently and changes, if any noted with proper justification thereof) shall be taken and discounted by 75% i.e. only 25% of the Industry average P/E shall

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be taken as capitalisation rate (P/E ratio). Earnings per share of the latest audited annual accounts will be considered for this purpose. (d) The value as per the net worth value per share and the capital earning value calculated as above shall be averaged and further discounted by 10% for ill-liquidity so as to arrive at the fair value per share. (e) In case the EPS is negative, EPS value for that year shall be taken as zero for arriving at capitalised earning. (f) In case where the latest balance sheet of the company is not available within nine months from the close of the year, unless the accounting year is changed, the shares of such companies shall be valued at zero. (g) In case an individual security accounts for more than 5% of the total assets of the scheme, an independent valuer shall be appointed for the valuation of the said security. To determine if a security accounts for more than 5% of the total assets of the scheme, it should be valued by the procedure above and the proportion which it bears to the total net assets of the scheme to which it belongs would be compared on the date of valuation. (ii) (a) Non Traded /Thinly Traded Debt Securities of Upto 182 Days to Maturity: As the money market securities are valued on the basis of amortization (cost plus accrued interest till the beginning of the day plus the difference between the redemption value and the cost spread uniformly over the remaining maturity period of the instruments) a similar process should be adopted for non-traded debt securities with residual maturity of upto 182 days, in the absence of any other standard benchmarks in the market. Debt securities purchased with residual maturity of upto 182 days are to be valued at cost (including accrued interest till the beginning of the day) plus the difference between the redemption value (inclusive of interest) and cost spread uniformly over the remaining maturity period of the instrument. In case of a debt security with maturity greater than 182 days at the time of purchase, the last valuation price plus accrued interest should be used instead of purchase cost. All other non-traded Non Government debt instruments shall be valued using the method suggested in (ii)(b). (ii) (b) Non Traded/ Thinly Traded Debt Securities of Over 182 Days to Maturity. For the purpose of valuation, all Non Traded Debt Securities would be classified into "Investment grade" and "Non Investment grade" securities based on their credit ratings. The non-investment grade securities would further be classified as "Performing" and "Non Performing" assets. • All Non Government investment grade debt securities, classified as not traded, shall be valued on yield to maturity basis as described in the applicable SEBI circular. • All Non Government non-investment grade performing debt securities would be valued at a discount of 25% to the face value. • All Non Government non-investment grade non-performing debt securities would be valued based on the provisioning norms. Valuation of Unlisted Equity Shares: Unlisted equity shares of a company shall be valued "in good faith" on the basis of the valuation principles laid down below: a. Based on the latest available audited balance sheet, net worth shall be calculated as lower of (i) and (ii) below:

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i. Net worth per share = [share capital plus free reserves (excluding revaluation reserves) minus Miscellaneous expenditure not written off or deferred revenue expenditure, intangible assets and accumulated losses] divided by Number of Paid up Shares. ii. After taking into account the outstanding warrants and options, Net worth per share shall again be calculated and shall be = [share capital plus consideration on exercise of Option/Warrants received/receivable by the Company plus free reserves (excluding revaluation reserves) minus Miscellaneous expenditure not written off or deferred revenue expenditure, intangible assets and accumulated losses] divided by {Number of Paid up Shares plus Number of Shares that would be obtained on conversion/exercise of Outstanding Warrants and Options} The lower of (i) and (ii) above shall be used for calculation of net worth per share and for further calculation in (c) below. (b) Average capitalisation rate (P/E ratio) for the industry based upon either BSE or NSE data (which should be followed consistently and changes, if any, noted with proper justification thereof) shall be taken and discounted by 75% i.e. only 25% of the Industry average P/E shall be taken as capitalisation rate (P/E ratio). Earnings per share of the latest audited annual accounts will be considered for this purpose. (c) The value as per the net worth value per share and the capital earning value calculated as above shall be averaged and further discounted by 15% for illiquidity so as to arrive at the fair value per share. The above methodology for valuation shall be subject to the following conditions: i. All calculations as aforesaid shall be based on audited accounts. ii. In case where the latest balance sheet of the company is not available within nine months from the close of the year, unless the accounting year is changed, the shares of such companies shall be valued at zero. iii. If the net worth of the company is negative, the share would be marked down to zero. iv. In case the EPS is negative, EPS value for that year shall be taken as zero for arriving at capitalised earning. v. In case an individual security accounts for more than 5% of the total assets of the scheme, an independent valuer shall be appointed for the valuation of the said security. To determine if a security accounts for more than 5% of the total assets of the scheme, it should be valued in accordance with the procedure as mentioned above on the date of valuation. At the discretion of the AMC and with the approval of the trustees, an unlisted equity share may be valued at a price lower than the value derived using the aforesaid methodology. Valuation of securities with Put/Call Options The option embedded securities would be valued as follows: Securities with call option: The securities with call option shall be valued at the lower of the value as obtained by valuing the security to final maturity and valuing the security to call option. In case there are multiple call options, the lowest value obtained by valuing to the various call dates and valuing to the maturity date is to be taken as the value of the instrument. Securities with Put option: The securities with put option shall be valued at the higher of the value as obtained by valuing the security to final maturity and valuing the security to put option. In case there are multiple put options, the highest value obtained by valuing to the various put dates and valuing to the maturity date is to be taken as the value of the instruments. Securities with both Put and Call option on the same day: The securities with both Put and Call option on the same day would be deemed to mature on the Put/Call day and would be valued accordingly.

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Illiquid Securities: (a) Aggregate value of "illiquid securities" of scheme, which are defined as non-traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value. (b) All funds shall disclose as on March 31 and September 30 the scheme-wise total illiquid securities in value and percentage of the net assets while making disclosures of half yearly portfolios to the unitholders. In the list of investments, an asterisk mark shall also be given against all such investments, which are recognised as illiquid securities. (c) Mutual Funds shall not be allowed to transfer illiquid securities among their schemes w.e.f. October 1, 2000. (d) In respect of closed ended funds, for the purposes of valuation of illiquid securities, the limits of 15% and 20% applicable to open-ended funds should be increased to 20% and 25% respectively. v) Value of "Rights" entitlement a) Until they are traded, the value of the "rights" entitlement would be calculated as: Vr = n/m x (P ex - P of ) where Vr = Value of rights n = no. of rights Offered m = no. of original shares held P ex = Ex-Rights price P of = Rights Offer price b) Where the rights are not traded pari-passu with the existing shares, suitable adjustments would be made to the value of rights. Where it is decided not to subscribe for the rights but to renounce them and renunciations are being traded, the rights would be valued at the renunciation value. vi) Expenses and Incomes Accrued All expenses and incomes accrued up to the valuation date shall be considered for computation of NAV. For this purpose, major expenses like management fees and other periodic expenses would be accrued on a day-to-day basis. The minor expenses and income will be accrued on a periodic basis, provided the non-daily accrual does not affect the NAV calculations by more than 1%. vii) Changes in securities and in number of units: Any changes in securities and in the number of units will be recorded in the books not later than the first valuation date following the date of transaction. If this is not possible, given the frequency of NAV disclosure, the recording may be delayed up to a period of seven days following the date of the transaction, provided as a result of such non recording, the NAV calculation shall not be affected by more than 2%. The valuation guidelines as outlined above are as per prevailing Regulations and are subject to change from time to time in conformity with changes made by SEBI. Valuation of Derivative Products: i. The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of clause 1 of the Eighth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time. ii. The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded investments prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time.

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The valuation of the Scheme's assets and calculation of the Scheme's NAV shall be subject to audit on an annual basis and such regulations as may be prescribed by SEBI from time to time. 14. Accounting Policies & Standards In accordance with the Regulations, the AMC will follow the accounting policies and standards, as detailed below: a) The AMC, for each Scheme and its Plans, shall keep and maintain proper books of account, records and documents, so as to explain its transactions and to disclose at any point of time the financial position of the Scheme and, in particular, give a true and fair view of the state of affairs of the Fund. b) For the purposes of the financial statements, the Scheme and its Plans shall mark all investments to market and carry investments in the balance sheet at market value. However, since the unrealized gain arising out of appreciation on investments cannot be distributed, provision shall be made for exclusion of this item when arriving at distributable income. c) Dividend income earned by the Scheme and its Plans shall be recognized, not on the date the dividend is declared, but on the date the share is quoted on an ex-dividend basis. For investments, which are not quoted on the stock exchange, dividend income would be recognized on the date of declaration of dividend. d) In respect of all interest-bearing investments, income shall be accrued on a day to day basis as it is earned. Therefore, when such investments are purchased, interest paid for the period from the last interest due date up to the date of purchase should not be treated as a cost of purchase but shall be debited to Interest Recoverable Account. Similarly, interest received at the time of sale for the period from the last interest due date up to the date of sale must not be treated as an addition to sale value but shall be credited to Interest Recoverable Account. e) In determining the holding cost of investments and the gains or loss on sale of investments, the "average cost" method shall be followed for each security. f) Transactions for purchase or sale of investments shall be recognized as of the trade date and not as of the settlement date, so that the effect of all investments traded during a financial year are recorded and reflected in the financial statements for that year. Where investment transactions take place outside the stock market, for example, acquisition through private placement or purchases or sales through private treaty, the transaction would be recorded, in the event of a purchase, as of the date on which the Scheme obtains an enforceable obligation to pay the price or, in the event of a sale, when the Scheme obtains an enforceable right to collect the proceeds of sale or an enforceable obligation to deliver the instruments sold. g) Bonus shares to which the Scheme and the Plans thereunder becomes entitled shall be 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 shall be recognized only when the original shares on which the right entitlement accrues are traded on the stock exchange on an ex-right basis. h) Where income receivable on investments has accrued but has not been received for the period specified in the guidelines issued by the Board, provision shall be made by debiting to the revenue account the income so accrued in the manner specified by guidelines issued by the Board. i) When units are sold in the Scheme, an appropriate part of the sale proceeds shall be credited to an Equalization Account and when units are repurchased an appropriate amount shall be debited to Equalization Account. The net balance on this account shall be credited or debited to the Revenue Account. The balance on the Equalization Account debited or credited to the Revenue Account shall not decrease or increase the net income of the Fund

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but is only an adjustment to the distributable surplus. It shall therefore be reflected in the Revenue Account only after the net income of the Fund is determined. j) When units are sold, after considering the equalization as above, the difference between the sale price and the face value of the Unit, if positive, shall be credited to reserves and if negative, shall be debited to reserve, the face value being credited to Capital Account. Similarly, when the Units are repurchased, after considering the equalization as above, the difference between the purchase price and face value of the Unit, if positive, shall be debited to reserves and, if negative, shall be credited to reserves, the face value being debited to the Capital Account. k) The cost of investments acquired or purchased shall include brokerage, stamp charges and any charge customarily included in the broker's bought note. In respect of privately placed debt instruments any front-end discount offered shall be reduced from the cost of the investment. l) Underwriting commission shall be recognized as revenue only when there is no devolvement on the Scheme and its Plans. Where there is devolvement on the Scheme and the Plans thereunder, the full underwriting commission received and not merely the portion applicable to the devolvement shall be reduced from the cost of the investment. The accounting policies and standards outlined above are as per the existing Regulations and are subject to change as per changes in the Regulations. Guidelines for Identification and Provisioning for Non Performing Assets (Debt Securities) For Mutual Funds: (A) Definition of a Non Performing Asset (NPA) : An 'asset' shall be classified as non performing, if the interest and/or principal amount have not been received or remained outstanding for one quarter from the day such income / instalment has fallen due. (B) Effective date for classification and provisioning of NPAs : The definition of NPA may be applied after a quarter past due date of the interest. For e.g. if the due date for interest is 31.12.2002, it will be classified as NPA from 01.04.2003. (C) Treatment of income accrued on the NPA and further accruals : After the expiry of the 1st quarter from the date the income has fallen due, there will be no further interest accrual on the asset i.e. if the due date for interest falls on 31.12.2002 and if the interest is not received, accrual will continue till 31.03.2003 after which there will be no further accrual of income. In short, taking the above example, from the beginning of the 2nd quarter there will be no further accrual on income. On classification of the asset as NPA from a quarter past due date of interest, all interest accrued and recognized in the books of accounts of the Fund till the date, should be provided for. For e.g. if interest income falls due on 31.12.2002, accrual will continue till 31.03.2003 even if the income as on 31.12.2002 has not been received. Further, no accrual will be done from 01.04.2003 onwards. Full provision will also be made for interest accrued and outstanding as on 31.12.2002. (D) Provision for NPAs - Debt Securities : Both secured and unsecured investments once they are recognized as NPAs call for provisioning in the same manner and where these are related to close ended scheme the phasing would be such that to ensure full provisioning prior to the closure of the scheme or the scheduled phasing which ever is earlier. The value of the asset must be provided in the following manner or earlier at the discretion of the fund. Fund will not have discretion to extend the period of provisioning. The provisioning against the principal amount or installments should be made at the following rates irrespective of whether the principal is due for repayment or not. • 10% of the book value of the asset should be provided for after 6 months past due date of interest i.e. 3 months form the date of classification of the asset as NPA.

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• 20% of the book value of the asset should be provided for after 9 months past due date of interest i.e. 6 months from the date of classification of the asset as NPA. • Another 20% of the book value of the assets should be provided for after 12 months past due date of interest i.e. 9 months form the date of classification of the asset as NPA. • Another 25% of the book value of the assets should be provided for after 15 months past due date of interest i.e. 12 months from the date of classification of the asset as NPA. o The balance 25% of the book value of the asset should be provided for after 18 months past due date of the interest i.e. 15 months form the date of classification of the assets as NPA. Book value for the purpose of provisioning for NPAs shall be taken as a value determined as per the prescribed valuation method. (E) Reclassification of assets: Upon reclassification of assets as 'performing assets': 1. In case a company has fully cleared all the arrears of interest, the interest provisions can be written back in full. 2. The asset will be reclassified as performing on clearance of all interest arrears and if the debt is regularly serviced over the next two quarters. 3. In case the company has fully cleared all the arrears of interest, the interest not credited on accrual basis would be credited at the time of receipt. 4. The provision made for the principal amount can be written back in the following manner:- • 100% of the asset provided for in the books will be written back at the end of the 2nd quarter where the provision of principal was made due to the interest defaults only. • 50% of the asset provided for in the books will be written back at the end of the 2nd quarter and 25% after every subsequent quarter where both installments and interest were in default earlier. 5. An asset is reclassified, as 'standard asset' only when both overdue interest and overdue installments are paid in full and there is satisfactory performance for a subsequent period of 6 months. (F) Receipt of past dues : When the fund has received income/principal amount after their classifications as NPAs; For the next 2 quarters, income should be recognized on cash basis and thereafter on accrual basis. The asset will be continued to be classified as NPA for these two quarters. During this period of two quarters although the asset is classified as NPA no provision needs to be made for the principal if the same is not due and outstanding. If part payment is received towards principal, the asset continues to be classified as NPA and provisions are continued as per the norms set at (D) above. Any excess provision will be written back. Some of the investments made by mutual funds may become non-performing (NPAs) or illiquid at the time of maturity/ closure of schemes. In due course of time, these NPAs and illiquid securities may be realised by the mutual funds i.e. after the winding up of the schemes. Such amount would be distributed, if it is substantial and is realised within two years, to the old investors. In case the amount is not substantial or it is realised after two years, it may be transferred to the Investor Education Fund maintained by each mutual fund as specified in SEBI circular MFD/CIR/9/120/2000 dated November 24, 2000. The decision as to the determination of substantial amount shall be taken by the trustees of mutual funds after considering the relevant factors. (G) Classification of Deep Discount Bonds as NPAs : Investments in Deep Discount Bonds can be classified as NPAs, if any two of the following conditions are satisfied: • If the rating of the Bond comes down to grade 'BB' or below.

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• If the company is defaulting in their commitments in respect of other assets, if available. • Full Net worth erosion. Provision should be made as per the norms set at (D) above as soon as the asset is classified as NPA. Full provision can be made if the rating comes down to grade 'D' (H) Reschedulement of an asset: In case any company defaults either interest or principal amount and the fund has accepted a Reschedulement of the schedule of payments, then the following practice may be adhered to: (i) In case it is a first Reschedulement and only interest is in default, the status of the asset namely, 'NPA' may be continued and existing provisions should not be written back. This practice should be continued for two quarters of regular servicing of the debt. Thereafter, this is classified as 'performing asset' and the interest provided may be written back. (ii) If the Re-schedulement is done due to default in interest and principal amount, the asset should be continued as non-performing for a period of 4 quarters, even though the asset is continued to be serviced during these 4 quarters regularly. Thereafter, this can be classified as 'performing asset' and all the interest provided till such date should be written back. (iii) If the Reschedulement is done for a second/third time or thereafter, the characteristic of NPA should be continued for eight quarters of regular servicing of the debt. The provision should be written back only after it is reclassified as 'performing asset'. (I) Disclosure in the Half Yearly Portfolio Reports: The mutual funds shall make scrip wise disclosures of NPAs on half yearly basis along with the half yearly portfolio disclosure. The total amount of provisions made against the NPAs shall be disclosed in addition to the total quantum of NPAs and their proportion of the assets of the mutual fund scheme. In the list of investments an asterisk mark shall be given against such investments, which are recognized as NPAs. Where the date of redemption of an investment has lapsed, the amount not redeemed shall be shown as 'sundry debtors' and not investment provided that where an investment is redeemable by installments that will be shown as an investment until all installments have become overdue 15. INVESTMENT BY THE AMC IN THE FUND: RCAM reserves the right to invest its own funds in the Scheme upto a maximum extent of its networth. As per SEBI Regulations, such investments are permitted, subject to disclosure being made in the Offer Document. Further, RCAM shall not charge any fees on its investment in the Scheme, unless allowed to do so under SEBI Regulations in the future. 16. DEPOSITORY: If the Securities are held in dematerialised form, the rules of the Securities and Exchange Board of India (Depositories Participants) Regulations, 1996 will apply. 17. POLICY FOR INTER-SCHEME TRANSFERS: The Scheme may purchase / sell securities under the Scheme through the mode of Inter-Scheme Transfers, if such a security is under the buy / sell list of this Scheme and is on the sell / buy list of another Scheme under the Fund. Under such circumstances, the transactions will be effected based on the prevailing market price on spot basis and in conformity with Regulations. The valuation of untraded / unquoted securities and debt instruments shall be done in accordance with the general valuation policies of the Fund.

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VI. UNITS AND OFFER

1. Who can Invest? The following persons (subject, wherever relevant, to purchase of

units being permitted under their respective constitutions and relevant State Regulations) are eligible to subscribe to the units: ? Adult Resident Indian Individuals, either single or jointly (not exceeding three). ? Non – resident Indians and persons of Indian origin residing abroad, on a full

repatriation basis ? Parents / Lawful guardians on behalf of Minors ? Hindu Undivided Families (HUFs) in the name of HUF or Karta ? Companies (including Public Sector Undertakings), Bodies Corporate, Trusts

(through Trustees) and Co-operative Societies ? Banks (including Regional Rural Banks) and Financial Institutions ? Religious and Charitable Trusts ? Foreign Institutional Investors registered with SEBI ? International Multilateral Agencies approved by the Government of India ? Army/Navy/Air Force / Para Military Units and other eligible institutions ? Unincorporated body of persons as may be accepted by Reliance Capital Trustee Co.

Limited ? Partnership Firms ? OCBs subject to SEBI/RBI approvals/Regulations

Persons (as described aforesaid) investing in this scheme, shall all times ensure due compliance of their respective laws, which they are subject to from time to time. The Fund reserves the right to include / exclude new / existing categories of investors to invest in this Scheme from time to time, subject to SEBI/RBI Regulations, if any.

2. Minimum Corpus: The Fund seeks to collect a minimum corpus of Rs.1 crore. There

will not be any maximum limit on the amount raised and the Fund will make full and firm allotment against all valid applications. In the event this amount is not raised during the New Fund Offer period, the amount collected will be refunded to the applicants in accordance with the SEBI Regulations. Refund of subscription amount to applicants whose applications are invalid for any reason whatsoever, will commence after the allotment process is completed.

3. Minimum number of Investors in Scheme/Plan: As per SEBI Circular dated December 12, 2003 and June 14, 2005 each scheme and individual plan(s) under the schemes should have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such scheme/ plan(s) at portfolio level within a period of three months or at the end of the succeeding calendar quarter, whichever is earlier from the close of the New Fund Offer (NFO). After the NFO and the 3 months balancing period, in each subsequent quarter thereafter, on an average basis, the scheme shall meet with both the conditions of minimum number of investor and holding as a percentage of the corpus. Determining the breach of 25% limit - The average net assets of the scheme would be calculated daily and any breach of the 25% holding limit by an investor would

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be determined. At the end of the quarter, the average of daily holding by each such investor is computed to determine whether that investor has breached the 25% limit over the quarter. If there is a breach of limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period.

4. Expenses of Initial Issue: The initial issue expenses in respect of any Scheme shall

not exceed six percent of the funds raised under that Scheme. Entire Initial Issue expenses will be borne by the AMC and the same will not be charged to the Scheme.

5. Joint Applicants: If an Account has more than one holder, the first-named holder (as determined by the records of the Registrar) only will receive all notices and correspondence with respect to the Account, as well as the proceeds of any redemption request or dividend or other distributions. In addition, such holder will have the voting rights, associated with such Units as permitted.

6. Account Statement / Unit Certificate: The Account Statement issued in lieu of

the Unit Certificate under the Scheme shall be non-transferable. This Account Statement shall be construed as a proof of ownership or evidence showing the details of transactions and number of units held by the person in whose name the account statement is issued. Further, it is not compulsory for the Account Statement to be signed by any Authorised Signatory. The Trustee may issue a Unit Certificate in lieu of the Account Statement in respect of the units held, to such unitholders who request for the same, after receipt of a specific request from the unitholder. Further, the Trustee also reserves right to issue Transaction Confirmation Slips on an ongoing basis in lieu of Account Statements, indicating the price, and the units debited or credited to the Account of the unitholder/ investor, alongwith the closing balance of his/her/ their Account.

All Units will rank pari-passu amongst Units within the same Plan/ Scheme as to assets, earnings and the receipt of dividend distribution, if any.

7. Applicable NAV: i) Purchases : In respect of valid applications received upto 3 p.m. by the Mutual Fund alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the next business day shall be applicable. ii) Redemptions: In respect of valid applications received upto 3 p.m. by the Mutual Fund, same day’s closing NAV shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV of the next business day shall be applicable.

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8. Listing and transfer: Being an open-ended scheme, the units are not proposed to be listed on any stock exchange. However, the Trustee reserves the right to list the units as and when open-end Schemes are permitted to be listed under the Regulations, and if the Trustee considers it necessary in the interest of unitholders of the Scheme. As the Fund will be repurchasing the Units on an ongoing basis, no transfer facility is required. However, if a transferee becomes a holder of the Units by operation of law or upon enforcement of a pledge, then RCAM shall, subject to production of such evidence, which in its opinion is sufficient, effect the transfer, if the intended transferee is otherwise eligible to hold the Units, within 30 days from the date of receipt of all relevant documents, as specified in Regulation 37(2) of SEBI (Mutual Funds) Regulations, 1996. A person becoming entitled to hold the Units in consequence of the death, insolvency, or winding up of a sole holder or the last survivor of the joint holders, upon producing evidence to the satisfaction of the Fund shall be registered as the holder. Any addition, deletion of name from the folio of the Unit holder is deemed as transfer of Units. In view of the same, additions /deletions of names will not be allowed under any folio of the Scheme. The said provisions in respect of deletion of names will not be applicable in case of death of a Unit holder (in respect of joint holdings) as this is treated as transmission of Unit and not transfer.

9. Purchase of Units: Investors can purchase units under the Scheme at the purchase price. The unitholder can request for purchase of units by amount and not by number of units.

a. Minimum Amount The following are the minimum purchase amounts for the Scheme:

Resident Investors: Dividend Plan - Rs. 5,000* Growth Plan - Rs. 5,000*

NRI/PIO/FIIs: for all plans: Rs. 5,000*

* The minimum amount is specified above. Any purchases thereafter can be made in multiples of Re.1/-. For minimum purchase amount in Recurring Investment Option (RIO) please refer to the paragraph Recurring Investment Option in this Section. The Fund may revise the minimum/maximum amounts and the methodology for new/additional subscriptions as and when necessary. Such change may be brought about after taking into account the cost structure for a transaction/account and /or Market practices and/or the interest of existing unitholders. Further, such changes shall only be applicable to transactions from the date of such change.

b) Purchase Price: The Purchase Price will be calculated on the basis of the entry load. It is calculated in the following way:

Purchase Price = Applicable NAV x (1 + Entry Load)

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For detailed explanation on loads, please refer the Section on “Loads and Recurring Expenses” After every subscription transaction a fresh Account statement Transaction confirmation Slip will be dispatched, reflecting the updated holding of the unitholder, subject to realisation of the payment. Under normal circumstances, Reliance Capital Mutual Fund endeavors to despatch Account Statement within Five working days from the date of receipt of the application form/transaction slip at the Designated Investor Service Centre. However, the Fund reserves right to provide the account statement/transaction confirmation slip to investor through an alternative mechanism as may be decided by the Fund from time to time. The alternative mechanism may include electronic means of communication such as e-mail etc. The alternative mechanism to provide the account statement /transaction confirmation slip will be provided only to those investors who have specifically opted for the alternative mechanism. For example, if an investor in future, redeems or switches his units to another scheme /plan on the internet, then an online account statement /transaction confirmation may be provided to the investor or the same may be sent to his email address.

10. Transmission: In case of death of the unitholder, Units shall be transmitted in favour

of the second-named joint holder or nominee, as the case may be, on production of a death certificate or any other document to the satisfaction of the Fund.

Investment Plans Reliance Power Fund has a Growth Plan and a Dividend Plan. The Growth Plan has a Growth Option and Bonus Option. The Dividend Plan has a Dividend Payout Option and Dividend Re-investment Option Details of the above Plans/ options are as under:

Growth Plan: This Plan is designed for investors interested in capital appreciation on their investment and not in regular income. Accordingly, the fund will not declare dividends under this plan. The income earned on the Plan’s corpus will remain invested in the Plan.

n Growth Option: Under the Growth Option, there will be no distribution of income and

the returns to the investor is only by way of capital gains/ appreciation, if any, through redemption at applicable NAV of the units held by them.

n Bonus Option: Guided by the philosophy of value-oriented returns, the Trustees may

decide to periodically capitalise the sums from reserves including the amount of distributable surpluses of the scheme by way of allotment/ credit of bonus units to the unitholders accounts, the intent being to protect the unitholders interests.

The Fund, however, does not assure any targeted annual return/ income nor any capitalisation ratio. Accumulation of earnings and/ or capitalisation of bonus units and the consequent determination of NAV, may be suspended temporarily or indefinitely under any of the circumstances as stated under the para on ‘Suspension of Purchases and/or Redemption of units’ of the Offer Document.

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Capitalisation and issue of bonus units:

RCAM, in consultation with the Trustees, may utilise any sums from reserves including the amount of distributable surpluses of the scheme to the extent of such amounts attributable to unitholders under Bonus Option for issue of Bonus units. Bonus units may be declared under the plan of the scheme, as may be decided by RCAM, in consultation with the Trustees, from time to time. Eligibility and Treatment of Bonus Units: Bonus units, as and when issued, will be in proportion to the holdings of the unitholder under the concerned plan as on the record date, to be fixed for the purpose of Bonus declaration. RCAM may accordingly make appropriations and applications of the sum decided by it to be so capitalised by allotment and issue of fully paid-up units as bonus units, and generally do all such acts and things required to give effect thereto. The Bonus Units so allotted and issued as aforesaid will as regards rights and entitlements rank pari passu with the units in existence on the record date in respect of which they are allotted and issued. Interest created / options exercised by a member on the units under a folio by way of nomination, if any, will automatically apply to the bonus units. Please note that pursuant to allotment of Bonus Units, the NAV of the scheme would fall in proportion to the bonus units allotted. As a result, the total value of units held by the unitholder would remain the same. For eg. 1) Value of investors unitholding of 100 units prior-to issuance of bonus units at NAV of Rs. 20 per unit = Rs. 2,000. If the Scheme declares a bonus of say 1:1 (i.e. one bonus unit for every one unit held in the Plan on the record date), the value of the investors unitholding post issuance of bonus units = NAV of Rs. 10 * 200 units = Rs. 2,000

2) Value of investors unitholding of 100 units prior-to issuance of bonus units at NAV of Rs. 20 per unit = Rs. 2,000. If the Scheme declares a bonus of say 4:1 (i.e. one bonus unit for every four units held in the Plan on the record date), the value of the investors unitholding post issuance of bonus units = NAV of Rs. 16 * 125 units = Rs. 2,000.

(The statistics given above in the examples are only for understanding the logic of issuance of bonus units and should not be considered as indicative of any bonus likely to be issued under the Plan)

"Unit" means and includes, where the context so requires, a unit issued as fully paid-up bonus unit by capitalising a part of the amount standing to the credit of the account of the reserves formed or otherwise in respect of this scheme.

Allotment & Despatch Of Account Statement: The Bonus units will be added to the existing folio. An Account statement reflecting the accretion to the unitholders through issuance of bonus units will be despatched to the unitholders within five working days from the date of allotment of the bonus units.

Dividend Plan: The plan has been designed for investors who require regular income in the form of dividends. Under the Dividend Plan, the fund will endeavor to make regular dividend payments to the unitholders.

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Dividend Payout Option: Under this option the Dividend declared under the Plan will be paid to the unitholders within 30 days from the declaration of the dividend though the fund endeavors to pay the dividend proceeds within three working days.

Reinvestment Option: The Dividend Plan has a Re-investment Option whereby the dividend distributed under the plan will be automatically reinvested at the ex-dividend NAV on the transaction day following the date of declaration of dividend and additional units will be allotted accordingly. Investors desirous of opting for the same should indicate the same in the space provided in the application form.

Please note that if no Plan is mentioned / indicated in the Application form, the units will, by default, be allotted under the Growth Plan. Similarly, for the Dividend Plan, if no Option (payout or reinvestment) is indicated, the applicant will be deemed to have applied for the Dividend Re-investment Option of the Dividend Plan. Under the Growth Plan, if no Option (Growth or Bonus) is indicated, the applicant will be deemed to have applied under the Growth Option of the Growth Plan. The unitholder is subsequently free to switch the units from the default plan / option to any other eligible plans / options of the Scheme, at the applicable price.

Dividend will be distributed from the available distributable surplus after the deduction of TDS and applicable surcharge, if any.

NOTE

? For all tax related matters referred above, please read the Section of this offer document on ‘Tax Benefits’. In view of the individual nature of tax benefits, each investor is advised to consult his or her own tax consultant with respect to the specific tax implications arising out of his or her participation in the scheme.

? If the applicant does not indicate his choice of Plan in the application form, the Fund will treat the application as having been received under the Growth Plan. The unitholder, subsequently, is free to switch his units from the Growth Plan to any other eligible plans of the Scheme, at the applicable price.

Effect of Dividends As with the redemption of Units, when dividends are declared and paid with respect to the Scheme, the net assets attributable to Unitholders Dividend Plan will stand reduced by an amount equivalent to the product of the number of units outstanding and the dividend amount per unit declared on the record date. The NAV of the Unitholders in the Growth Plan will remain unaffected by the payment of dividends.

Mode of Payment of Dividends The Fund proposes to pay dividend in the following manner: a) Direct credit to the bank account of unitholders: The Fund is arranging with selected

banks to enable direct credits into the bank accounts of the investors at these banks. The names of such banks will be intimated to the unitholders subsequently. As per directive issued by SEBI, it is mandatory for an investor to declare his/her bank account number

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and accordingly, investors are requested to give their bank account details in the application form.

b) Unitholders who do not wish to avail the above mentioned direct credit facility will receive dividend payments through payable at par cheques/DDs.

Policy on unclaimed redemption/ dividend amounts As per SEBI Circular No.MFD/CIR/9/120/2000 dated 24/11/2000 the unclaimed redemption/ dividend amounts shall be deployed in call money market or money market instruments only or such other instruments, as permitted under Regulations. The investors who claim such amounts during the period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount will be transferred to a pool account and the investors can claim the amount at NAV prevailing at the end of the third year. The income earned on such funds shall be used for the purpose of investor education. The Fund will make continuous efforts to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by AMC for managing unclaimed amounts shall not exceed 50 basis points.

11. How to Apply / Purchase?

New Account: An Application Form shall be utilised to open an account in the Scheme by both resident and Non Resident Investors, and submitted along with the payment instrument at the Designated Investor Service Centre. After due processing of the Application Form the Registrars shall allot an account number and units to the investor and despatch an account statement to the investor. The unitholder should quote the account number in all future transactions. It is mandatory to mention the Applicant's PAN and the I.T. Circle/Ward/District if the amount invested is Rs.50,000/- or more. Investors are therefore requested to provide the same, in the absence of which the application form will not be accepted. In case where the PAN has not been applied for or applied for & not allotted, each such applicable should submit a declaration in Form 60/61 prescribed by the I.T Department in duplicate, duly supported with a copy of proof of address specified in form 60/61. As per the directives issued by SEBI it is mandatory for an investor to declare his/her bank account number. This is to safeguard the interest of unitholders from loss or theft of their redemption cheques. Investors are requested to provide their bank details in the Application Form failing which the same will be rejected as per current Regulations.

12. Additional Purchases/ Inter Scheme Switch/Inter Plan Switch

The transaction slip can be used by the investor to make additional purchases /Inter Scheme Switch or Inter Plan Switch by entering the requisite details in the transaction slip and submitting the same alongwith the payment instrument at the Designated Investor Service Centre. The transaction slips can be obtained from any of the Designated Investor Service Center's. Alternatively the investor can quote his account number and use an account opening form to make additional purchases. The Investor

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can also make additional purchases /Inter Scheme Switch online, through the online transaction facility provided by RMF. The details about the said facility is provided elsewhere in the offer document

RCAM may change the procedures that investors should follow to effect subscriptions or Inter Scheme Switch or Inter Plan Switch from time to time.

14. Mode of Payment a) Resident Investors Investors can make payment for the Units by any of the following means:

? By local Cheques. In other words, by local cheques payable in the city in which the application forms is submitted. However, outstation cheques will not be accepted.

? By a Demand Draft payable locally in the city of the Designated Bank Branch (during NFO) or Designated Investor Service Centre in which the application form/transaction slip is submitted and drawn on a bank which is a member of the Bankers Clearing House of that city.

Allotment of units against the investment made under the scheme, shall be subject to realization of instrument thereof.

LIST OF DOCUMENTS REQUIRED TO BE SUBMITTED ALONGWITH THE APPLICATION FORMS: Companies/Body Corp. ? Certified copy of the Board Resolution authorising investments/ disinvestments in Mutual

Funds Schemes, certified by the Company Secretary / Authorised Signatory ? List containing names designation and specimen signatures of the signatories, authorised

as per the above referred Board Resolution, duly attested by the bankers/ Company Secretary on the Company‘s letterhead

? Copy of the Memorandum and Articles of Association of the Company duly attested by the Company Secretary or any other authorised signatory

? Other relevant documents governing the statute (in case of Body Corporate not covered under the Companies Act, 1956)

Partnership ? Copy of the Partnership Deed duly attested by any of the partners ? Specimen Signatures of the partners attested by their bankers ? Copy of the Resolution, signed by the partners, authorising investments/ disinvestments

in the Fund and corresponding operational procedures Trusts ? Copy of the Trust Deed attested by the Trustees/ Secretary ? Copy of the Resolution passed by the Trustees authorising investments/ disinvestments in

Mutual Fund Schemes, duly certified by the Trustees/ Secretary ? List of Trustees and the specimen signatures, authorised as per the above resolution, duly

attested by the bankers/ Secretary of the Trust on the Trust‘s letterhead Co-operative Societies ? Copy of the Registration Certificate attested by the Secretary/ office bearer of the society ? Copy of the Resolution authorising investments/ disinvestments in the Fund and

corresponding operational procedures, duly attested by the Secretary/ office bearer of the society

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? List of authorised signatories with designation & their specimen signatures, attested by the bankers

b) Non Resident Investors Repatriation Basis : NRIs/PIOs and FIIs (subject to RBI/appropriate authority approval) must make payments through local cheques/demand drafts payable in the city of the Designated Investor Service Centre drawn out of balances held in their NRE/FCNR account maintained with banks authorised to deal with foreign exchange in India or out of Funds remitted from abroad in foreign exchange through banking channels. Non-Repatriation Basis : In the case of NRIs/PIOs and FIIs (subject to RBI/appropriate authority approval) seeking to apply for Units on a non-repatriation basis, payment shall be made by way of inward remittance or by local cheques or demand draft payable in the city of the Designated Investor Service Centre drawn out of balances in their NRO/NRSR accounts maintained with banks authorised to deal with foreign exchange in India. Documents required to be submitted by NRIs alongwith the Application Form: ? In case Indian rupee drafts are purchased abroad or from FCNR / NRE A/c., an account

debit certificate from the Bank issuing the draft confirming the debit shall also be enclosed alongwith the Application Form.

? For subscriptions amounts remitted out of debit to the FCNR / NRE A/c., the Application form must be accompanied with a Account Debit Certificate confirming the account type and account number, issued by the Investor’s banker(s).

? As per the directives issued by SEBI, it is mandatory for an investor to declare his/her bank account number in the application form. This is to safeguard the interest of unitholders from loss or theft of their redemption cheques / DDs. Investors are requested to provide their bank details in the Application Form failing which the same will be rejected as per current Regulations.

PLEASE NOTE THAT THE FOLLOWING WILL NOT BE ACCEPTED ? Stockinvests ? Cash ? Outstation Cheques ? Post-Dated Cheques (except in the case of Recurring Investment option) All cheques and drafts should be crossed “A/c. Payee Only” and made out in favour of “Reliance Diversified Power Sector Fund”. RCAM may specify various other modes of payment from time to time. Investment made under the scheme, shall be subject to realization of instrument thereof. 15. Where to submit Application forms/Transaction slips: Ongoing Basis: Investors may submit / mail the completed application forms at any of the Designated Investor Service Centers or any other location designated as such by RCAM, at a later date. The addresses of the Designated Investor Service Centers is given in this Offer Document. Investors in cities other than where the Designated Investor Service Centers (DISC) are located, may send their application forms to any of the nearest DISC, accompanied by Demand Draft/s payable locally at that DISC Application under Power of Attorney: In the case the application made under a Power of Attorney, a duly attested copy of the Power of Attorney must be lodged along with the Application form at any of the Designated Investor Service Centers as mentioned at the end of this Offer Document.

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Purchase of Units : Units can be purchased at the applicable sale price for the respective plans under the scheme, after the scheme opens for ongoing transactions.

16. Additional Facilities: a) Recurring/ Systematic Investment Plan (RIP/SIP) : An existing unitholder can benefit under this facility by investing specified amounts regularly. By investing a fixed amount of rupees at regular intervals, one would end up buying more units of the Fund when the price is low and fewer units when the price is high. As a result, over a period of time, the average cost per unit to the unitholder will always be less than the average subscription price per unit, irrespective of whether it is a rising, falling or fluctuating market. Thus, the unitholder automatically gains and averages out the fluctuations of the market, without having to monitor prices on a day-to-day basis. This concept is called "Rupee Cost Averaging". This concept may be understood more easily through the example given below: RIP Rising Market (Rs.) NAV (Rs.) Units Credit Month 1 1000 10.00 100.000 Month 2 1000 10.13 98.717 Month 3 1000 10.25 97.561 Month 4 1000 10.38 96.339 Month 5 1000 10.51 95.147 Month 6 1000 10.64 93.985 Total RIP (Rs.) 6000 Total Credit (Units) 581.749 Avg. NAV per Unit (Rs.) 10.32 Avg. Cost Per Unit (Rs.) 10.31 Falling Markets Month 1 1000 10.00 100.000 Month 2 1000 9.80 102.041 Month 3 1000 9.60 104.167 Month 4 1000 9.40 106.383 Month 5 1000 9.20 108.696 Month 6 1000 9.00 111.111 Total RIP (Rs.) 6000 Total Credit (Units) 632.398 Avg. NAV Per Unit (Rs.) 9.50 Avg. Cost Per Unit (Rs.) 9.49 Fluctuating Markets Month 1 1000 10.00 100.000 Month 2 1000 10.15 98.522 Month 3 1000 10.05 99.502 Month 4 1000 10.20 98.039 Month 5 1000 10.08 99.206 Month 6 1000 10.27 97.371 Total RIP (Rs.) 6000 Total Credit (Units) 592.640 Avg. NAV Per Unit (Rs.) 10.13 Avg. Cost Per Unit (Rs.) 10.12

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Operational procedures for this Scheme shall be announced by the Fund from time to time. An investor shall have the option of choosing one day among multiple days for RIP/SIP. These shall be 2nd, 10 th , 18 th or 28 th of every month/ quarter. However, only one SIP per month/ quarter is permitted. The first RIP/SIP cheque/draft could be of any working day but subsequent cheques should be dated 2nd, 10th, 18th or 28th and there should be a minimum gap of at least 21 working days between the 1st SIP and the 2nd RIP/SIP or as specified by RCAM from time to time. Investors should check the same at the Designated Investor Service Centre of Reliance Mutual Fund before investing. However, subsequent cheques should have a gap of atleast a month or a quarter depending upon the frequency chosen. If the date on the cheque/draft is a non-working day for the scheme, then the units shall be allotted on the next working day. “Minimum Application Amount” as specified in the Offer document will not be applicable for RIP/SIP Investments. Minimum RIP/SIP amount in case of Monthly RIP/SIP option will be six cheques of Rs. 1000/- each or twelve cheques of Rs. 500/- each and in multiple of Re. 1/-thereafter. In case of quarterly RIP/SIP, the minimum amount will be four cheques of Rs. 1500/- each and in multiple of Re. 1/- thereafter. It is mandatory that all the cheques should be of the same value. This is purely for operational convenience. The unit holder is however free to discontinue from the RIP/SIP facility at any point of time by giving necessary instructions. b) Regular withdrawal Plan (RWP): Unitholders may utilize the RWP to receive regular monthly / quarterly payments their account. The minimum amount, which the unitholder can withdraw, is Rs.500/- and in multiples of Rs. 500/-, thereafter, subject to revision by RCAM. The amount thus withdrawn will be considered as redemption and shall be converted into units and will be deducted from the unit balance in the account, of the unitholder. Subsequent to the request made in the application, a RWP form will be sent to the Unitholder. RWP will commence only upon receipt of this prescribed form duly completed. RWP requests in any other format besides the specified format will be treated as invalid and are liable for rejection. All RWP transactions would be reported on the first transaction day of the respective month. The redemption proceeds will be posted within normal service standards to the investors. No post-dated cheques will be issued against RWP transactions. There is no limitation on the amount of withdrawals. The unitholder will define the frequency of withdrawals and the amount of withdrawal per RWP transaction. RWP forms received without this information will be treated as incomplete and are liable for rejection. The unitholder needs to specify the start date and the end date for RWP. In cases where the start date and the end date has not been specified in the RWP form, the RWP will continue till the balance in the account becomes nil or below the amount specified by the investor for RWP.

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A unitholder who has opted for RWP under a specific account can also redeem or switch his units to any other eligible scheme or any other plans/options under the same scheme provided he has sufficient balance in his account, on the date of such request. RWP will automatically cease in case the unit balance becomes nil after such redemption / switch transaction or falls below the required amount specified by the investor for RWP. A unitholder can put in additional subscription in the account, in accordance with conditions specified in the Offer Document for additional subscriptions, any time during the existence of the concerned account. Such additional subscriptions will in no way alter the functioning of the RWP, unless a subsequent request to the contrary is received from the unitholder in writing. c) Recurring Investment Plan for Corporate Employees (RICE) : RICE is the Recurring Investment Plan for Corporate Employees. All the terms and conditions and other operational aspects prescribed under RIP shall be applicable for RICE also. The only difference is that rather than the individual investor giving post dated cheques, the company for which the employee works will deduct the instructed amount from the salary of the employee and will give one consolidated cheque along with the investor name and individual amount details. The Account statement / transaction confirmation slip is subsequently sent to the investor concerned. The statement of accounts will be dispatched to the unitholders within 10 working days or within SEBI prescribed limits. RCAM, in consultation with the Trustees, reserves the right to issue operational guidelines under RIP / RWP / RICE and also alter / modify their structure, from time to time. d. Systematic Transfer Plan and Dividend Transfer Plan A. Systematic Transfer Plan (STP): Units holders can transfer their investments from the following schemes of Reliance Mutual Fund to Reliance Diversified Power Sector Fund and vice versa, as detailed herein: 1. Reliance Growth Fund 2. Reliance Vision Fund 3. Reliance Income Fund 4. Reliance Liquid Fund 5. Reliance Medium Term Fund 6. Reliance Short Term Fund 7. Reliance Banking Fund 8. Reliance Gilt Securities Fund 9. Reliance Monthly Income Plan 10. Reliance Diversified Power Sector Fund 11. Reliance Pharma Fund 12. Reliance Floating Rate Fund 13. Reliance Media & Entertainment Fund 14. Reliance Equity Opportunities Fund 15. Reliance Tax Saver (ELSS) Fund* 16. Reliance Equity Fund *(subject to the lock - in period of three years) The list is subject to change. Plans Offered An investor can choose between the following plans based on their preference:

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(i) Fixed Systematic Transfer Plan – The Unit holders in all the plans/options of the above-mentioned schemes except the daily dividend option will be eligible to transfer a fixed amount to any plan/option of the open-ended schemes of Reliance Mutual Fund in the manner stated as under:

(i) Weekly – 1st, 8th, 15th and 22nd of every month. (ii) Fortnightly – 1st and 15th of every month. (iii) Monthly – Any pre-specified date of every month to be chosen by the

unitholder. (iv) Quarterly - Any pre-specified date of the first month of the quarter to be

chosen by the unitholder. A minimum of Rs. 1000 on each execution date in case of monthly option and Rs. 3000 on each execution date in case of quarterly option and in multiples of Rs 100 thereof can be transferred. There will be no exit Load in Transferor Scheme and no entry load in the transferee scheme. However, in case of Transferee schemes, the following exit load shall be applicable:

(ii) Capital Appreciation Systematic Transfer Plan- The Unit holders in Growth

plans/options of the above-mentioned schemes will be eligible to transfer the capital appreciation to any plan/option of the open-ended non-liquid schemes of Reliance Mutual Fund in the manner stated as under, subject to a minimum transfer amount of Rs. 500/-.:

(i) Monthly – 1st of every month. (ii) Quarterly – 1st of the starting month of every quarter.

? In case of STP from Debt (Transferor) schemes to Equity/Sector specific

(Transferee) schemes the following load structure shall be applied Exit load in Debt (Transferor) schemes - Nil Entry and Exit load in Equity/ Sector specific (Transferee) Schemes

Subscription Amount Entry Load Exit Load

For Subscription below Rs 2 Crs

Nil 2.25% if redeemed before 24 months of allotment

For Subscription of Rs 2 Crs & above and below Rs 5 crs

Nil 1.25% if redeemed before 24 months of allotment

For Subscription of Rs 5 crs & above

Nil Nil

? In case of STP from Equity/Sector specific (Transferor) schemes to Equity/Sector

specific (Transferee) schemes the following load structure shall be applied. Exit load in Equity/Sector specific (Transferor) schemes - Nil Entry and Exit load in Equity/Sector specific (Transferee) schemes - Nil

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? In case of STP from any Transferor scheme to Debt (Transferee) schemes viz, Reliance

Monthly Income Plan, Reliance Income Fund, Reliance Medium Term Fund, Reliance Liquid Fund, Reliance Short Term Fund, Reliance Gilt Securities Fund, Reliance Floating Rate Fund, no entry load shall be applicable and an exit load as applicable in the respective schemes shall be applicable. Notes (i) All valid transfer requisitions would be treated as switch-out / redemption for the

transferor scheme and switch-in/ subscription transactions for the transferee scheme and would be processed at the applicable NAV of the respective schemes. The difference between the NAVs of the two Schemes/ Plans will be reflected in the number of units allotted.

(ii) These plans are not available for units which are under any Lien/Pledged or any

lock-in period.

(iii) RCAM in consultation with the Trustees, reserves the right to modify the procedure, load structure in accordance with the SEBI Regulations and any such change shall be applicable only to units transacted pursuant to such change on a prospective basis.

(iv) The unit holders may approach/ consult their tax consultants in regard to the

treatment of the transfer of units from the tax point of view.

(v) An investor cannot simultaneously participate in an SIP and STP or SWP and STP in the same scheme.

(vi) Transfers (STP) from the scheme is not allowed for a period of 6 months from the

date of allotment for investments made during NFO.

(vii) Minimum number of transfers required for a STP shall be two.

For investors investing for the first time in transferor scheme, the minimum balance required to start STP shall be:

(i) Non-Liquid scheme: Rs. 10,000/- or the minimum amount as stated in the offer document of the respective transferor scheme, whichever is higher.

(ii) Liquid scheme: Rs. 25,000/- or the minimum amount as stated in the offer document of the respective transferor scheme, whichever is higher.

However, existing unitholders in the transferor scheme, who have the following minimum balance would be eligible to start STP:

(iii) Non-Liquid scheme: Rs. 10,000/- (iv) Liquid scheme: Rs. 25,000/-

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d) Trigger Facility: Under this facility the unit holders may opt for withdrawal/ switch of units to any other plan/ scheme on happening of any one of the following events under trigger option; A. NAV reaches or crosses a particular value : E.g. NAV reaches or crosses Rs 11.00 If NAV on the date of allotment of investment is less than Rs 11.00, the trigger will be activated when the NAV rises to Rs 11.00 or more on close of any day on which NAV is computed. If NAV on the date of allotment of investment is more than Rs11.00, the trigger will be activated when the NAV falls to Rs 11.00 or below on close of any day on which NAV is computed All transactions linked with trigger will be on the basis of the applicable NAV of the transaction day following the day on which NAV reaches, crosses or falls below Rs 11.00 B. Change in the value of units held by unit holder’s atleast by certain percentage: E.g. Change in the value of Investment by atleast by (+ or - or +/-) 10% The trigger will be activated when value of the unitholding rises to 10% or more at the close of any day on which the NAV is declared; or The trigger will be activated when value of the unitholding falls by 10% or more at the end of any day on which the NAV is declared; or The trigger will be activated when value of the unitholding either rises by 10% or more or falls by 10% or more on any day on which the NAV is declared On happening of any of the above mentioned event Unitholder can opt for following action on the date of happening of the relevant event; 1. Full redemption 2. Redemption to the extent of capital appreciation only 3. Full switch into other eligible plan/ scheme of RMF 4. Switch of only the appreciation into other plan/ scheme of RMF Transactions linked with the triggers will be executed at the applicable NAVs for the transaction day following the day on which the trigger situation has arisen. Further all the predetermined events i.e. rise or fall in the NAV upto a particular % or value will be compared with the value of units or NAV prevailing on the date of allotment of units, irrespective of the fact whether the trigger is opted on the date of allotment or subsequently. For e.g. an investor has invested at Rs 11.00 and opted for full redemption, if NAV appreciates atleast by 10%, trigger will be activated on the transaction day when NAV moves to 12.10 (i.e. 10% more than Rs 11/-) or more. A trigger once activated will not be reactivated in any other plan/ scheme where the Switch happens or in the same plan which retains a part of the value or in case of normal redemption /switch before the trigger is activated. Triggers will be deactivated on redemption and/or switch and/or pledge of units. Trigger, thus, acts as a financial planning tool and enables the investor to minimise the losses and timely book profits. NAVs of the schemes are declared at the close of the business day and hence Value of the unit holders unit holdings based on the end of day NAV will be considered as a base for activating the triggers. Accordingly, all the redemptions/ switches etc will be done on the following transaction day on which the event occurs. Please note that trigger is an additional facility provided to the unit holders to save the time for completing the redemption/ switch formalities on happening of a particular event. Trigger is not to be conceived as an assurance on part of the Fund that the investor will manage to receive a particular sum of money/ appreciation/ and/ or fixed % of sum. Trigger is an event

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on happening of which the Fund will automatically redeem/ switch units on behalf of the investor on the date of happening of the event. In actual parlance, a trigger will activate an automatic transaction when the event selected for has reached a value greater or less that the specified value (trigger point). Trigger request is required to be given per transaction by filling in the relevant form. In the event of multiple triggers for a particular transaction, the trigger request will be considered invalid and rejected. B. Dividend Transfer Plan (DTP)

All the unit holders in the Dividend Plans (except Daily and Weekly frequencies in the Dividend Plans) of all open-ended schemes mentioned above can transfer their dividend to any other plans of all non liquid open-ended schemes/ plans of Reliance Mutual Fund by availing the facility of Dividend Transfer Plan (DTP). The minimum balance required to opt for this plan is Rs. 25,000 for non - liquid transferor scheme and Rs. 1 lakh for liquid transferor scheme. There will be no entry load or exit load in the transferee scheme.

Notes

(i) The amount to the extent of the distribution will be automatically invested on ex-dividend date into RMF scheme selected by the investor at the NAV of the scheme and equivalent units will be allotted, subject to the terms and conditions of the scheme and after deduction of applicable taxes.

(ii) In respect of DTP, it is clarified that the dividend amount proposed to be

transferred would be treated as subscription transaction in the transferee scheme and would be processed at the applicable NAV of the respective schemes.

The Trustee/AMC reserves the right to modify the facilities at any time in future on a prospective basis. For Index Fund, please refer to the Offer Document and addendum relating thereto, for provisions relating to STP/DTP. e. Auto Debit and Electronic Clearing Service Auto Debit facility will be available with the banks as notified by RMF from time to time. The ECS facility would be provided at all the locations where RBI or its associate Clearing House offers this facility. The list of such banks and centers where this arrangement will be available may undergo changes from time to time as and when banks/centers are added/ deleted. Investors are advised to contact the nearest Designated Investor Service Centre for details before investing. The investor opting for Auto debit/ ECS facility will be required to sign up a mandate form on the basis of which Reliance Mutual Fund will arrange for his account to be debited as per the frequency, amount & date chosen by the investor.

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Investors having an account with HDFC Bank and desirous of opting for direct debit of their account through standing instructions should submit a duly completed standing instruction form in the prescribed format. ECS mandate form should not be used. f. Online / Web based transactions: Online transactions is a service offered on www.reliancemutual.com for investors of Reliance Mutual Fund, whereby they can purchase, redeem or switch units of Reliance Mutual Fund schemes online. They can also view their account details, transaction details and Statement of account on line. The following features are available online: 1) ‘My Portfolio’ - In this feature an investor can track his portfolio with RMF. He can view

the Portfolio Snapshot, Statement of Account and Transaction Details. He can also request for email / fax / courier of their statement of accounts online.

2) Transact online - The investors can Purchase, Switch or Redeem the units of Reliance Mutual Fund online.

3) ‘Manage My Account’ - The investor can map multiple folios to a single Username through this service. All that is needed is a PIN for the Folio, which the investor wishes to map to his account. The feature also allows an investor to Remove a Folio already added and change password / PIN.

17. OTHER FACILITIES a) Nomination by unit holders: A nomination facility is available only for individuals applying on their own behalf i.e. singly or jointly upto two Applicants can nominate one person. Minors and Non Resident Indians can also be nominated. Non Resident Indians can be nominated as per the guidelines issued by the RBI from time to time. Applicants can change the nomination at any time during the tenure of the Scheme. Those who wish to do so, can seek the nomination form by ticking the appropriate column in the Application Form, duly completed and submit the same at any of the Designated Investor Service Centres. Persons applying on behalf of a minor being either a parent or lawful guardian, HUF, non-individual applicant such as banks, companies, and eligible institution, societies, bodies corporate, partnership firms, etc. shall have no right to make any nomination. Payment to the nominee of the sums payable against redemption / dividends shall fully discharge the Fund of all liability towards the estate of the unitholder and his/her successors and legal heirs. b) Switching Option: Unit holders may switch part/full unit holdings, which are not under any lien, from the Plans under the schemes to any other eligible scheme/plan, at the applicable NAV subject to the payment of applicable loads. All valid application for swtich-out shall be treated as redemption and for switch-in shall be treated as subscription with the respective applicable NAV of the scheme. Unit holders may currently switch entire/ part of the units within the plans of the Scheme without any load. Similarly, no load shall be applicable for switches between the equity / sector specific schemes. However, differential load shall be charged for switching from

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Reliance Index to any other equity/sector specific scheme and switching from any other equity / sector specific scheme to Reliance NRI Equity Fund. The switches would be done at the applicable NAV based prices and the difference between the NAVs of the two Schemes/Plans/ Options will be reflected in the number of units allotted. RCAM may charge an appropriate load equivalent to the difference between the entry load into the scheme and the prevailing entry load of the Scheme from where units are being transferred. However, RCAM, in consultation with the Trustees, reserves the right to modify this structure, in accordance with the SEBI Regulations. However, any such change shall be applicable only to units transacted pursuant to such change. RCAM reserves the right to change the procedures in respect of Inter-Scheme/ Inter-Plan/ Inter-Option Switches, from time to time. How to Switch? The request for a switch can be either in terms of amount or in terms of the number of units. Instructions for switching may be provided by completing a transaction slip and submitting the same at any of the Designated Investor Service Centers. Investors are requested to mention the name of the Scheme and Plan/ Option into which the switch is being made. If the applicant does not mention his / her choice of plan/ Option of the Scheme into which the switch is being effected, the Fund will treat the switch application as having been received under the default plan/ option of the Scheme. The transaction slip attached as a tear-off portion of the account statement can be used by the investor to make Inter-Scheme Switch or Inter-Plan Switch by entering the requisite details in the transaction slip and submitting the same at any of the Designated Investor Service Centers. Blank Transaction slips can be obtained from any of the Designated Investor Service Centers. An Account Statement reflecting the updated Unit balance in the Scheme will be despatched to the Unitholder. RCAM may, in consultation with the Trustees, from time to time, change the load structure on switching of units, on a prospective basis. c) Lien on Units: On an ongoing basis, when existing and new investors make subscriptions, a lien on units allotted will be created, and such units shall not be available for redemption until the payment proceeds are realised by the Fund. In case a unitholder redeems units soon after making purchases, the redemption cheque will not be despatched until sufficient time has elapsed to provide reasonable assurance that cheques or drafts for units purchased have been cleared. In case the cheque / draft are dishonoured by the bank, the transaction shall be reversed and the units allotted earlier shall be cancelled, and a fresh Account Statement / Confirmation slip shall be despatched to the Unitholder. For NRIs, the Fund may mark a lien on units in case documents which need to be submitted, are not given in addition to the application form and before the submission of the redemption request. However, RCAM reserves the right to change operational guidelines for lien on units from time to time. 18. Pledge of Units: The Units under the Scheme may be offered by the unitholder as security by way of a pledge in favour of scheduled banks, financial institutions, NBFC's or any other body, all specifically approved by the Mutual Fund. Upon a specific authorisation request made by a unitholder and upon completing necessary formalities by the unitholder, the Fund will instruct the Registrar to mark a lien for a specific period on the Units standing to the credit of

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the unit holders account in consideration of the unitholder availing of any special service offered by the AMC or any other body. However, the disbursement of such loans will be at the entire discretion of the concerned bank/financial institution/ any other body and the Mutual Fund assumes no responsibility thereof. If by enforcing the pledge /charge, the scheduled bank/financial institution any other approved body seeks to transfer the units and have them registered in its name, then the AMC shall comply with the request, if the necessary documentary evidence is made available. No Pledge or charge shall be recognised by the AMC unless it is registered with the Registrar and the acknowledgement has been received. However, it is the right to change operational guidelines for pledge on units, from time to time. The Pledgor will not be able to redeem units that are pledged until the entity to which the units are pledged provides written authorisation to the mutual fund that the pledge/lien charge may be removed. As long as units are pledged , the Pledgee will have complete authority to redeem such units. 19. Redemption of Units : The Units can be redeemed at the Redemption Price. Under this scheme a Unit holder can redeem his units in the following manner: The RCAM may offer new arrangements, through any other convenient medium for expeditious redemption of units as introduced from time to time, without being bound to offer or continue such services for redemption of units For working out his portfolio balance on a given day - Closing NAV of previous day will be used. Based on the amount redeemed & time of redemption – the applicable closing NAV of that day (if transaction happens before 3 pm) or closing NAV of next day (if transaction happens after 3 pm) will be used to recalculate his units & therefore his new portfolio value. In case the unit holder wishes to completely redeem/close his account then he would need to fill in the transaction slip for redemption & submit the same to the nearest Designated Investor Service Center. In this case the unitholder has the option to request for a redemption either by amount (in Rupees) or by number of Units. If the redemption request indicates both amount (in Rupees) and number of Units, the latter will be considered. Where a Rupee amount is specified or deemed to be specified for redemption, the number of Units redeemed will be the amount redeemed divided by the Redemption Price. Alternatively, a unitholder can request closure of his account, in which case, the entire unit balance lying to the credit of his account will be redeemed. The Unitholder while redeeming units may either request that the redemption proceeds be mailed to his/her address or ask for it to be retained at the designated centre for collection by him/her. The number of Units so redeemed will be subtracted from the unit holder's account balance to work out the new balance.

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In case the balance in unit holder's account does not cover the amount of redemption request the Fund may close the unit holder's account and send the entire such (lesser) balance to the unitholders. If an investor has purchased Units on more than one working day, the Units purchased prior in time (i.e. those Units which have been held for the longest period of time), will be deemed to have been redeemed first, i.e. on a First in First out Basis. Units purchased by cheque will not be redeemed until after realisation of the cheques/DD.

Redemption Price : The Redemption Price will be calculated in the following way : Redemption Price = Applicable NAVx (1- Exit Load) Example: If the applicable NAV is Rs. 10.00, sales/entry load is 2 per cent and the exit/repurchase load is 2 percent then the sales price will be Rs. 10.20 and the repurchase price will be Rs. 9.80. The Redemption Price will be published in a daily newspaper on a daily basis or as prescribed under the Regulations, from time to time. Currently, redemptions shall be effected at applicable NAV based prices subject to exit loads, if any. However, RCAM may revise the above pricing structure and transaction timings from time to time, subject to an exit load chargeable in accordance with the Regulations. However, any such revision shall be in accordance with SEBI Regulations and would be applicable only to units subscribed to after the initial date of such notification on a prospective basis. The Fund will ensure that the Redemption Price is not lower than 93% of the NAV and the Purchase Price is not higher than 107% of the NAV, provided that the difference between the Redemption Price and Purchase Price of the Units shall not exceed the permissible limit of 7% of the Purchase Price, as provided for under the current Regulations. For detailed explanation on loads, please refer the Section on "Loads and Recurring Expenses-Section VII". A fresh Account statement / Transaction confirmation Slip may be sent after every redemption transaction or once a month at the discretion of the fund, reflecting the updated holding of the unitholder. However, the Fund reserves right to provide the account statement/ transaction confirmation slip to investors through alternative mechanisms as decided by the Fund from time to time. The alternative mechanism may include electronic means of communication such as e-mail etc. The alternative mechanism to provide the account statement /transaction confirmation slip will be provided only to those investors who have specifically opted for the alternative mechanism & have provided their email id. For example, if an investor in future, redeems or switches his units to another scheme /plan on the internet, then an online account statement /transaction confirmation may be provided to the investor or the same may be sent to his email address. Redemptions including switch-out transactions: i. In respect of valid applications received upto 3.00 p.m. by the Mutual Fund, same day's closing NAV shall be applicable. ii. In respect of valid applications received after 3.00 p.m. by the Mutual Fund, the closing NAV of the next business day shall be applicable. Minimum Account Balance: Redemptions can be for any amount or any number of units. However, in order to keep the account in operation, minimum balance equal to the minimum subscription amount under each of the plans, which is currently Rs.5,000/-, is required to be maintained in the account.

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RCAM reserves the right to close an investor's account if the value of the unit balance in the account falls below the minimum subscription amount under each of the plans. In such an event, RCAM reserves the right to compulsorily redeem the balance units in the account completely at the applicable redemption price. The Fund may revise the minimum/maximum amounts and methodology for redemptions as and when necessary. Such change may be brought about after taking into account the cost structure for a transaction / account and / or Market practices and / or the interest of the unit holders. Further such changes shall be carried out on a prospective basis from the date of notification of such change and would not, in any manner, be prejudicial to the interests of the investors who have joined the scheme before such notification. Any changes would be informed to unit holders by way of an advertisement. How to Redeem? The transaction slip attached as a tear-off portion of the account statement can be used by the investor to make a redemption or Inter-Scheme Switch or Inter-Plan Switch by entering the requisite details in the transaction slip and submitting the same at any of the Designated Investor Service Centers. Blank Transaction slips can be obtained from any of the Designated Investor Service Centers. However, RCAM reserves the right to provide the facility of redeeming units of the Scheme through an alternative mechanism including but not limited to on - line transactions on the Internet, Reliance Any Time Money Card or Debit Card, etc. as may be decided by the AMC/Fund from time to time. The alternative mechanism may also include electronic means of communication such as redeeming units online through the RMF site or any other website etc. The alternative mechanisms would be applicable to only those investors who opt for the same in writing. “Reliance Any Time Money Card”, which will facilitate instant withdrawal by unit holders of Reliance Diversified Power Sector Fund (“the scheme”) at all VISA enabled ATMs and Merchant Establishments/ Point of Sale (PoS) terminals across the world. Presently, this Co-Branded Card shall be issued by RMF in collaboration with HDFC Bank Ltd. This facility of instant redemption will be offered in addition to the conventional mode of redemption, i.e. through physical redemption slips, which is currently available to all unitholders of RMF. Features of Reliance Anytime Money Card: ? This Card will offer instant liquidity to the investor in times of his need (on 24 X 7 basis)

upto a permissible limit as fixed/ determined by the Bank for ATM/PoS withdrawals or 50% of withdrawal limit as set by RMF, whichever is lower, from time-to-time.

? This facility will be in addition to the conventional method of redemption i.e., physical

redemption request at the Designated Investor Service Centers of the Reliance Mutual Fund / Reliance Capital Asset Management Limited. The unit holder can withdraw money as per his requirement and convenience in addition to the conventional mode of redemption, i.e. through physical redemption slips, which is currently available to all unitholders of RMF.

? This Card will permit the investor to withdraw cash (redeem his units) and to check his

Current Holding Value as well as the Withdrawal Balance limit

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? RMF will issue “Reliance Any Time Money Card” only to the unit holders of Reliance Diversified Power Sector Fund who opt for it. In other words, investor can opt for any of the redemption facility as per his choice and convenience.

? This Card shall be issued only to Resident Individuals who are of the age of majority. No

card shall be issued to Minors, HUF, NRI, Pvt / Public Ltd Companies, Partnership Firms, Proprietorship Firms, Trusts and any other artificial juridical persons as defined in the offer document.

? Investors applying under the scheme with payment instruments other than self-cheque

will not be issued Reliance Anytime Money Card. ? Only One Card shall be issued to one folio/ account. In case of Joint holding this shall be

issued only to the 1st holder provided the account operation mandate is either or survivor. And in case of Joint ownership, where the mandate for account operation is Jointly by both holders, no Card shall be issued.

? Withdrawals through this alternative mode of redemption can be stopped temporarily or

permanently for the want of any statutory compliance, at the directives of RMF and/or SEBI or any competent statutory authority.

? This additional facility and the applicable charges therein, which shall be levied by the

Reliance Mutual Fund/ Bank / VISA shall be borne by the investor on an actual basis and shall be intimated upfront to the investors from time to time. Presently, one free transaction each is offered per month (per card) for cash withdrawal and balance enquiry at HDFC VISA ATMS only.

? Reliance Mutual Fund/AMC reserves the right to change the bank/ any service provider,

from time to time in connection with issue of Reliance Any Time Money Card. ? SEBI circulars on uniform cut off timings shall also be applicable to this facility of

alternative means of redemption. Where to submit the Redemption request? The unitholder should submit the transaction slip for a redemption / switch of units in his / her account at any of the Designated Investor Service Centers mentioned in this Offer Document or designated as such by RCAM, at a later date. 20. Payment of Proceeds a) Resident Investors Redemption proceeds will be paid either by direct credit to the investor bank account (where the unitholder has an account with the bank with whom the fund has a tie up under intimation to unitholder by post/email) or by cheques, marked “A/c. Payee only” and drawn in the name of the sole holder/first-named holder (as determined by the records of the Registrar). The Bank Name and Bank Account No, as specified in the Registrar’s records, will be mentioned in the cheque. The cheque will be payable at par at all the cities designated by the Fund from time to time. If the unitholder resides in any other city, he will be paid by a Demand Draft payable at the city of his residence after deducting the Demand Draft charges.

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b) Non Resident Investors In case of non-resident investors, redemption proceeds will be remitted depending upon the source of investment as follows: (i) Repatriation Basis The proceeds can also be sent to his Indian address for crediting to his NRE / FCNR / non-resident (Ordinary) account or NRSR account. When units have been purchased through remittance in foreign exchange from abroad/by cheque/draft issued from proceeds of the unitholders FCNR deposit or from funds held in the unitholders Non Resident (External) account kept in India, the proceeds can be remitted to the unitholder in foreign currency (any exchange rate fluctuation will be borne by the unitholder) if desired by the unitholder. (ii) Non Repatriation Basis a) When units have been purchased from funds held in the unitholders’ non-resident (Ordinary) account, the proceeds will be sent to the unitholders Indian address for crediting to the unitholders’ non-resident (Ordinary) account / NRSR account. b) When units have been purchased from funds held in the unitholders’ NRSR account, the proceeds will be sent to the Indian address for crediting to the unitholders’ NRSR account. The Fund may make other arrangements for effecting payment of redemption proceeds in future. Despatch of Proceeds: As per SEBI Regulations, the Mutual Fund shall despatch the redemption proceeds within the maximum period allowed, which is currently 10 working days from the date of receipt of a valid redemption request at the Designated Investor Service Centers. However, under normal circumstances, the Mutual Fund shall endeavour to despatch the redemption proceeds within three working days from the date of receipt of a valid redemption request at the Designated Investor Service Center. All payments shall be despatched by ordinary mail (with or without UCP) or Registered Post or by Courier, unless otherwise required under the Regulations, at the risk of the unitholder. Effect of Redemptions (i) On the Fund : The Unit capital and Reserves of the Scheme will stand reduced by an amount equivalent to the product of the number of Units redeemed and the Applicable NAV as on the date of redemption. (ii) On the unit holder’s account: The balances in the unit holders account will stand reduced by the number of Units redeemed. Right to Limit Redemption: The Trustee may, in the general interest of the Unit holders of the Scheme under this Offer Document and keeping in view the unforeseen circumstances / unusual market conditions, limit the total number of Units which may be redeemed on any Working Day to 5% of the total number of Units then issued and outstanding under any Scheme / Plan or such other percentage as the Trustee may determine. The Trustee may, at its sole discretion in response to unforeseen circumstances or unusual market conditions including, but not limited to, extreme volatility of the stock, fixed income and money markets, extended suspension of trading on the stock exchanges, natural calamities, communication breakdowns, internal system breakdowns, strikes, bandhs, riots or other situations where the Trustee in consultation with RCAM, considers that such suspension is necessary, limit the total number of Units which may be redeemed on any working day to 5% of the total number of Units then in issue or such higher percentage as the Trustee may determine in any particular case.

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Any Units, which by virtue of these limitations are not redeemed on a particular Working Day, will be carried forward for redemption to the next Working Day, in the order of receipt. Redemptions so carried forward will be priced on the basis of the Redemption Price of the Working Day on which redemption is made. Under such circumstances, to the extent multiple redemption requests are received at the same time on a single Working Day, redemption's will be made on pro-rata basis, based on the size of each redemption request, the balance amount being carried forward for redemption to the next Working Day(s). 21. Suspension of Purchase and Redemption of Units: The purchase and/or redemption of Units may be suspended with prior approval of Trustees and Asset Management Company giving the details of circumstances and justification for the proposed action shall also be informed to SEBI in advance, temporarily or indefinitely when any of the following conditions exist at one/more Designated Investor Service Center's: • The stock market stops functioning or trading is restricted; • Periods of extreme volatility in the stock market, fixed income or money market, which, in the opinion of the Investment Manager, are prejudicial or detrimental to the interest of the investors; • Natural calamity; or • For any bulk processing like dividend, book closure, etc. • If banks do not carry-out any of the normal Banking activities at one or more Designated Investor Service Centers • In the event of breakdown in the means of communication used for the valuation of investments of the Scheme, without which the value of the securities cannot be accurately calculated. • In the event of any force majeure or disaster that affects the normal functioning of the AMC or the designated investor service centers. • SEBI, by order, so directs. The normal time taken to process redemption and/ or purchase requests, as mentioned earlier, may not be applicable during such extraordinary circumstances. However, suspension or restriction of repurchase/ redemption facility under any scheme of the Mutual Fund shall be made applicable only after the approval from the Board of Directors of the Asset Management Company and the Trustee Company. The approval from the AMC Board and the Trustees giving details of circumstances and justification for the proposed action shall also be informed to SEBI in advance. RMF also reserves the right at its sole discretion to withdraw sale of Units in the Scheme temporarily or indefinitely, if the AMC views that increasing the Scheme's size further may prove detrimental to the existing unit holders of the Scheme. An order/ request to purchase Units is not binding on and may be rejected by the Trustee, the AMC or their respective agents, unless it has been confirmed in writing by the AMC or its agents and (or) payment has been received. 22. Duration of the Scheme: The duration of the Scheme is perpetual. However, the scheme may be wound up if 1. There are changes in the capital markets, fiscal laws or legal system, or any event or series of events occurs which in the opinion of the Trustees, require the scheme/ Plan to be wound up; or 2. 75% of the Unit holders in the Plan pass a resolution that the Plan be wound up; or 3. SEBI directs the Scheme/ Plan to be wound up in the interest of Unit holders. 4. If the Plan fails to meet the criteria for minimum number of investors and maximum holding by a single investor as mentioned above.

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VII. LOADS AND RECURRING EXPENSES

A. LOAD STRUCTURE OF THE SCHEME: The Load structure shall be as indicated in Para B below on the 'Applicable Load Structure". Under the Scheme, RCAM, in consultation with the Trustees, reserves the right to change the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Scheme on the investment on prospective basis. The same will be notified to the unit holders. The Load Structure would comprise of an Entry Load and /or an Exit Load / CDSC, as may be permissible under the Regulations. All loads including CDSC for the Scheme shall be maintained in a separate account and may be utilised towards meeting the selling and distribution expenses as permitted under the Regulations. Any surplus in this account may be credited to the scheme, whenever felt appropriate by RCAM. B. APPLICABLE LOAD STRUCTURE: The following Load Structure is applicable during the continuous offer in the scheme till further notice. Entry (Sales) Load imposed on purchase of units

Subscription Amount Load For Subscription below Rs.2 crores 2.25% For Subscription of Rs 2 crores & above and below Rs.5 crores 1.25% For Subscriptions of Rs.5 crores & above Nil Contingent Deferred Sales Charge (CDSC): NIL Switchover Fee Inter-Scheme Switch : At the applicable loads in the respective

Schemes. Nil load for inter-scheme switch between the Equity Schemes of RMF and Reliance Equity Fund and vice-versa. However, for Switch into Reliance NRI Equity Fund and Switch out from Reliance Index Fund, the differential load will be applicable

Inter-Plan Switch Nil

Exit Load: For subscription during continuous offer the exit load shall be Nil.

Trustees reserve the right to change the load structure. Any imposition or enhancement of load in future shall be applicable on prospective investments only. At the time of changing the Load Structure: (i) The addendum detailing the changes will be attached to Offer Document and Abridged Offer Document. The addendum will be circulated to all the distributors/brokers so that the

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same can be attached to all Offer Documents and Abridged Offer Documents already in stock. The addendum will be sent alongwith the newsletter sent to the Unit holders immediately after the changes. (ii) Arrangements will be made to display the changes/modifications in the Offer Document in the form of a notice in all the Investor Service Centres and distributors/brokers office. (iii) The introduction of the Exit Load alongwith the details will be stamped in the acknowledgement slip issued to the investors on submission of the application form and will also be disclosed in the Account Statement or in the covering letter issued to the Unit holders after the introduction of such Load. C. FEES AND EXPENSES OF THE SCHEME: As per the provisions of the Regulations (as amended up to date), the following fees and expenses will be chargeable to the Scheme: 1. Expenses of Initial Issue (a) Present Scheme (Reliance Diversified Power Sector Fund): As prescribed under the regulation, the total initial issue expenses shall not exceed 6% of initial resources raised under the scheme and any excess beyond six per cent shall be borne by the AMC. However, no initial issue expenses will be charged to the Scheme and the entire amount will be borne by the AMC. Hence, for every Rs.10.00 invested by an investor during the initial issue, the entire Rs.10.00 will be available for investment by the Scheme. Reliance Tax Saver (ELSS) Fund: The Scheme was launched on July 25, 2005. Actual amount mobilized – 670.09 crores. Actual Initial Issue Expenses – 4.7009%. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized on a weekly basis over the period of the scheme. Reliance Liquidity Fund: The scheme was launched on June 15, 2005. Actual amount mobilized - Rs. 462.68 crores. Actual Initial Issue Expenses– 0.0001%. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Regular Savings Fund: The scheme was launched on May 10, 2005. Actual amount mobilized - Rs. 2.035 lakhs. Actual Initial Issue Expenses– 2.457%. As mentioned in the Offer Document, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Fixed Maturity Fund – Series II: The scheme was launched on April 25, 2005. Actual amount mobilized –530. 46 crores. Actual Initial Issue Expenses– 0.0001%. As mentioned in the OfferDocument, actual initial issue expenses were debited to the scheme and will be amortized on a weekly basis over the period of the scheme. Reliance Index Fund - The scheme was launched on January 29, 2005. Actual amount mobilized Reliance Index Fund - Nifty Plan – Rs. 15.80 crores and in Sensex Plan – Rs. 3.72 crores. Actual Initial Issue Expenses –Nifty Plan – 0.79% and Sensex Plan – 0.81% of the amount mobilized in the respective plans. As mentioned in the Offer Document of the Reliance Index Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Fixed Maturity Fund Series I - The scheme was launched on March 29, 2005. Actual amount mobilized - Rs. 201.69 crores. Actual Initial Issue Expenses – Nil. Reliance Equity Opportunities Fund - The scheme was launched on February 14, 2005. Actual amount mobilized - Rs. 1772.68 crores. Actual Initial Issue Expenses - 3.1026% of the amount mobilized. As mentioned in the Offer Document of the Reliance Equity

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Opportunities Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance NRI Equity Fund - The scheme was launched on October 16, 2004. Actual amount mobilized - Rs. 92.96 crores. Actual Initial Issue Expenses - 3.39% of the amount mobilized. As mentioned in the Offer Document of the Reliance NRI Equity Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance NRI Income Fund - The scheme was launched on October 16, 2004. Actual amount mobilized - Rs. 2.03 crores. Actual Initial Issue Expenses - 2.45% of the amount mobilized. As mentioned in the Offer Document of the Reliance NRI Income Fund, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Media & Entertainment Fund - The scheme was launched on September 16, 2004.Actual amount mobilized - Rs. 81.32 crores, Actual Initial Issue Expenses - 0.86% of the amount mobilized. As mentioned in the Offer Document of the scheme, actual initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. Reliance Floating Rate Fund - The scheme was launched on August 23, 2004. Actual amount mobilized - Rs. 590.59 crores, Actual Initial Issue Expenses - 0.02% of the amount mobilized As mentioned in the Offer Document of the scheme, initial issue expenses were debited to the scheme and will be amortized over a period of 5 years. 2. Recurring Expenses of the Scheme: The ongoing fees and expenses of operating the Scheme on an annual basis, expressed as a percentage of the amount of the Scheme's average daily net assets, are estimated as follows: Estimated % Investment Management Fee 1.25 Marketing Expenses 0.75 Operational Expenses 0.25 Total 2.25 The above expenses are estimates only and are subject to change as per actuals. As per the Regulations, RCAM can charge Investment Management Fees @ 1.25% of the average daily net assets for a corpus upto Rs.100 crores and 1% on the balance amount above Rs.100 crores, calculated on a daily basis. However, no AMC fees can be chargeable on RCAM's investment in the Scheme. The Trustee Company, RCTC, shall be entitled to receive a sum computed @ 0.05% of the Unit Capital of all the Schemes of RMF on 1st April each year or a sum of Rs.5,00,000/- which ever is lower or such other sum as may be agreed upon between the Settlor (RCL) and the Trustee (RCTC) from time to time in accordance with the SEBI Regulations or any other authority, from time to time. The above estimates have been made in good faith as per the information available to RCAM and are subject to change as per actuals. Expenses on an ongoing basis will not exceed the following percentage of the daily average net assets or such maximum limits as may be specified by SEBI Regulations from time to time. Net Assets Maximum Expenses % Upto Rs.100 crores 2.50% Next Rs. 300 crores 2.25% Next Rs.300 crores 2.00% Balance 1.75%

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Provided that such expenses shall be lesser by atleast 0.25% of the daily average net assets outstanding in each financial year in respect of a scheme investing in bonds. The Fund will strive to reduce the level of these expenses so as to keep them well within the maximum limits allowed by SEBI. The total expenses of the scheme including the investment management and advisory fee shall not exceed the limit stated in Regulation 52(6).

VIII. UNITHOLDER'S RIGHTS AND SERVICES

A. UNIT HOLDERS' RIGHTS 1) Unit holders under the Scheme have a proportionate right in the beneficial ownership of the assets of the Plan of the Scheme in which they have invested in, and to the dividend/ bonus declared, if any, by the Fund under the Plan in which they have invested. 2) The Trustee shall be bound to make such disclosures to the unit holders as are essential in order to keep them informed about any relevant information, especially that which may have an adverse bearing on their investments. 3) a) If the Mutual Fund declares a dividend under the Scheme, the unit holders are entitled to receive dividend warrants within 30 days of the date of declaration of the dividend. b) Unit holders are entitled to receive Redemption cheques within 10 working days from the date of redemption. 4) The appointment of RCAM for the Fund may, with the prior approval of SEBI, be terminated by 75% of the unit holders or by a majority of the Board of Directors of the Trustee. 5) Unitholders shall also have the following rights: (i) To inspect all the documents listed under the heading "Documents Available for Inspection". ii) To receive an abridged scheme-wise annual report which shall be mailed to all unitholders not later than six months from the date of closure of the relevant accounting year and the full annual report shall be available for inspection at the head office of the fund and a copy shall be made available to the unitholders on request on payment of nominal fees if any, iii) Before expiry of one month from the close of each half year that is on 31/3 and 30/9, the Fund shall publish its audited/un-audited financial results in one national English daily newspaper and in a newspaper in the language of the region where the Head Office of the fund is situated. These shall also be displayed on the web site of the Reliance Mutual Fund that is www.reliancemutual.com and that of AMFI. Full portfolio in the prescribed format shall also be disclosed either by publishing it in the newspapers or by sending to the unitholders within one month from the end of each half-year and it shall also be displayed on the web site of mutual fund. iv) The trustees shall ensure that no change in the fundamental attributes of any scheme or the trust or fees and expenses payable or any other change which would modify the scheme and affects the interest of the unitholders, shall be carried out unless, (i) a written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the mutual fund is situated; and (ii) the unitholders are given an option to exit at the prevailing Net Asset Value without any exit load.

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(v) Suspension or restriction of repurchase/ redemption facility under any scheme of the Mutual Fund shall be made applicable only after the approval from the Board of Directors of the Asset Management Company and the Trustee Company. The approval from the AMC Board and the Trustees giving details of circumstances and justification for the proposed action shall also be informed to SEBI in advance. vi) The statement of accounts will be dispatched to the unitholders who subscribe to the units when the scheme is open for continuous subscription after the New Fund Offer within 10 working days or within SEBI prescribed limits. vii) Policy for Unclaimed Redemption and Dividend Amount. As per SEBI guidelines, the unclaimed redemption and dividend amounts shall be deployed in call money market or money market instruments only or such other instruments, as permitted under Regulations. The investors who claim such amounts during the period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount will be transferred to a pool account and the investors can claim the amount at NAV prevailing at the end of the third year. The income earned on such funds shall be used for the purpose of investor education. The Fund will make continuous efforts to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by RCAM for managing unclaimed amounts shall not exceed 50 basis points. viii) The Trust Deed shall not be amended without obtaining the prior approval of SEBI, and the unitholders approval would be obtained where it affects the interest of unitholders 6) 75% of the unit holders can pass a resolution to wind-up the Scheme 7) The Trustee is obliged to convene a meeting on a requisition of 75% of the unit holders of a Scheme 8) The Trustee is obliged to obtain the consent of the unit holders - (a) Whenever required to do so by SEBI in the interest of the unit-holders; or (b) Whenever required to do so on the requisition made by three-fourths of the unit holders

of the Scheme; or (c) When the majority of the Board of Directors of the Trustee decides to wind up or prematurely redeem the units. B. REGISTER OF UNIT HOLDERS: A Register of Unit holders shall be maintained at the office of RCAM and / or at the office of the Registrars and at such other places as the Trustee may decide and the register shall contain particulars as follows: a) The names and addresses of Unit holders b) The number of units held by each such holder C. VOTING RIGHTS OF THE UNIT HOLDERS: Subject to the provisions of the Regulations as amended from time to time, the consent of the unit holders shall be obtained, entirely at the option of the Trustee, either at the meeting of the unit holders or through postal ballot. Only one Unit holder in respect of each folio or account representing a holding shall vote and he shall have one vote per unit in respect of each resolution to be passed. D. ACCOUNT STATEMENT / UNIT CERTIFICATE: All the applicants whose subscription proceeds have been realised will receive full and firm allotment of Units, provided their applications are valid in all other respects. RCAM retains the discretion to reject any application. The process of allotment of units and mailing of account statement will be completed within 30 days from the date of closure of the New Fund Offer period. No interest will be payable on any subscription money refunded within 30 days. If the Fund refunds the amount after 30 days, interest @ 15% p.a. will be paid to the applicant and borne by the AMC for the period from the day following the date of expiry of 30 days until the actual date of the refund. Refund orders will be marked "A/c. payee only" and drawn in the

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name of the applicant in the case of a sole applicant and in the name of the first applicant in all other cases. In both cases, the bank account number and bank name, as specified in the application, will be mentioned in the refund order. The bank and/ or collection charges, if any, will be borne by the applicant. All the refund payments will be mailed by registered post or as required under Regulations. In the case of holdings specified as 'jointly', all requests will have to be signed by all the joint holders. However, in the case of holdings specified as 'any one or survivor', any one of the joint holders may sign such requests. E. NAV INFORMATION: The NAV of the Scheme will be calculated and declared by the Fund on every Working Day. The information on NAV may be obtained by the Unitholders, on any day from the office of the AMC / the office of the Registrar in Hyderabad or any of the other Designated Investor Service Centres. The NAV shall be published in two daily newspapers on a daily basis. Investors may also obtain information on the purchase /sale price for a given day on any Working Day from the office of the AMC / the office of the Registrar in Hyderabad/ any of the other Designated Investor Service Centres. For any NAV information, investor may also call our Touchbase customer service centre at 3030 1111, callers outside India, please dial 91-40-30301111. F. DISCLOSURE OF INFORMATION UNDER THE REGULATIONS: The Scheme-wise Annual Report of RMF will be prepared and an abridged summary of the Annual Report will be published through an advertisement and mailed to all unitholders as soon as may be but not later than six months from the date of the closure of the relevant financial year. The Audited/Unaudited financial results will be published through an advertisement in one English daily newspaper circulating in the whole of India and in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated before the expiry of one months from the close of each half year, that is on 31st March and on 30th September or as may required by the Regulations from time to time. The scheme’s portfolio in the prescribed format as per SEBI guidelines, will be published through an advertisement in one English daily newspaper circulating in the whole of India and in a newspaper published in the language of the region where the H.O. of Mutual Fund is situated before the expiry of one month from the close of each half year i.e. 31st March and 30th September or send a copy of the same to all eligible unitholders. Investor may also call our Touchbase customer service centre at 3030 1111, callers outside India, please dial 91-40-30301111. G. SERVICES TO UNIT HOLDERS: 1. Investor Services: It is the endeavour of the Fund to provide consistently high quality service to its investors. This would encompass all interactions by the unitholder / Investor with the Fund. The Fund will strive to upgrade the quality of services through implementation of technology, through ensuring quality consciousness amongst its service personnel and agencies associated with it. The Fund will endeavour to provide a high degree of convenience for the investors' dealings with itself. The Fund will strive to constantly increase this level of convenience. 2. Facilitating Enquiries and Transactions: Unitholders' enquiries and transactions during business hours will be entertained at the office of the AMC / the office of the Registrar in Hyderabad or any of the other Designated Investor Service Centre. 3. Finding Solutions to Problems: The Fund will follow up with the Registrar on complaints and enquiries received from investors. The Fund will strive to speedily resolve investor complaints.

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4. Unitholder Grievances Redressal Mechanism: Investor grievances will normally be received at the Corporate Office of the AMC or at the head office of the Registrar. All grievances received at the AMC, will then be forwarded to the Registrar, if required, for necessary action. The complaints will be closely followed up with the Registrar to ensure timely redressal and prompt investor service. Mr. Balkrishna Kini is the Investor Relations Officer for the Fund. All related queries should be addressed to her at the following address: Mr. Balkrishna Kini Reliance Capital Asset Management Limited. Kamla Mills Compound, Trade World, 'B' Wing, 7th Floor, Lower Parel (W), Mumbai - 400 013. Tel: 022-30414813; Fax: 022-30414899 Email: balkrishna.kini@relianceinfo.com 5. Correspondence : All correspondence, including change in the name, address, designated bank account number and bank branch, loss of Account Statement / Unit Certificates, etc. should be addressed to M/s. Karvy Computershare Private Limited - UNIT RMF , Karvy Plaza, 21, Road No. 4, Street No.1, Banjara Hills, Hyderabad 500 034. (Tel No. 040- 23394828). For any further information, you may send us an E-mail to : customer_care@reliancemutual.com or contact Touchbase our customer service centre at 30301111, callers outside India, Please dial 91-40-30301111. 6. Investors' Complaints History: Reliance Mutual Fund mails to its Investors their Account Statement not later than one month from the date of the closure of the New Fund Offer period and within ten working days or within SEBI prescribed limits on an ongoing basis. Since then RMF has received, either directly or through its Registrars, some complaints / requests, the bulk of which pertain to non-receipt of Account Statement or correction of Name or Address etc. RMF works closely with its Registrar to provide prompt service to its Investors and has been able to attend to most standard complaints within normal response times. The status of complaints relating to RMF Schemes received upto January 13, 2006 is given below: Schemes Period Complaints

Received Complaints Redressed

Complaints Pending

Reliance Growth Fund

2002-2003 2003-2004 2004-2005 April 1, 05 – Jan 13, 06

29 118 693 1150

29 118 693 1150

Nil Nil Nil Nil

Reliance Vision Fund

2002-2003 2003-2004 2004-2005 April 1, 05 – Jan 13, 06

27 283 1033 880

27 283 1033 880

Nil Nil Nil Nil

Reliance Income Fund

2002-2003 2003-2004 2004-2005 April 1, 05 – Jan 13, 06

58 203 392 147

58 203 392 147

Nil Nil Nil Nil

Reliance Liquid Fund

2002-2003 2003-2004 2004-2005 April 1, 05 – Jan 13, 06

2 26 110 50

2 26 110 50

Nil Nil Nil Nil

90

Reliance Medium Term Fund

2002-2003 2003-2004 2004-2005 April 1, 05 – Jan 13, 06

60 51 322 58

60 51 322 58

Nil Nil Nil Nil

Reliance Short Term Fund

Dec 2002- Mar 2003 2003-2004 2004-2005 April 1, 05 – Jan 13, 06

Nil 74 41 6

Nil 74 41 6

Nil Nil Nil Nil

Reliance Fixed Term scheme

Mar 2003 2003-2004 2004-2005 April 1, 05 – Jan 13, 06

Nil 1 11 3

Nil 1 11 3

Nil Nil Nil Nil

Reliance Banking Fund

May 03- 31 March, 2004 2004-2005 April 1, 05 – Jan 13, 06

1 23 103

1 23 103

Nil Nil Nil

Reliance Gilt Securities Fund

June 03- 31 March, 2004 2004-2005 April 1, 05 – Jan 13, 06

4 4 Nil

4 4 Nil

Nil Nil Nil

Reliance Monthly Income Plan

Jan 04 - 31 March, 2004 2004-2005 April 1, 05 – Jan 13, 06

475 815 341

475 815 341

Nil Nil Nil

Reliance Diversified Power Sector Fund

March 04 - 2005 April 1, 05 – Jan 13, 06

917 309

917 309

Nil Nil

Reliance Pharma Fund

May 04 – 31 March, 2005 April 1, 05 – Jan 13, 06

352 188

352 188

Nil Nil

Reliance Floating Rate Fund

August 04 – 31 March, 2005 April 1, 05 – Jan 13, 06

11 21

11 21

Nil Nil

Reliance Media & Entertainment Fund

September 04 – 31 March, 2005 April 1, 05 – Jan 13, 06

50 19

50 19

Nil Nil

Reliance Equity Opportunities Fund

Feb05 – 31,March,2005 April 1, 05 – Jan 13, 06

Nil 4514

Nil 4514

Nil Nil

Reliance NRI Equity Fund

November 04 – 31 March, 2005

110 28

110 28

Nil Nil

91

April 1, 05 – Jan 13, 06

Reliance NRI Income Fund

November 04 – 31 March, 2005 April 1, 05 – Jan 13, 06

16 Nil

16 Nil

Nil Nil

Reliance Index Fund – Nifty Plan

Jan2005 – 31,march2005 April 1, 05 – Jan 13, 06

1 2

1 2

Nil Nil

Reliance Fixed Maturity Fund – Series I

April 1, 05 – Jan 13, 06

2

2 Nil

Reliance Fixed Maturity Fund – Series II

April 1, 05 – Jan 13, 06 2 2 Nil

Reliance Tax Saver Fund

April 1, 05 – Jan 13, 06 1952 1952 Nil

Reliance Regular Saving Fund

April 1, 05 – Jan 13, 06 1 1 Nil

Reliance Liquidity Fund

April 1, 05 – Jan 13, 06 Nil Nil Nil

Reliance Fixed Tenor Fund – Plan A

April 1, 05 – Jan 13, 06 1 1 Nil

Please note that 88 complaints were received through SEBI from April 1, 2002 to January 13, 2006 and all the complaints were duly redressed except 5 complaints.

IX. TAX BENEFITS OF INVESTING IN THE MUTUAL FUND:

The certain tax benefits are available to the Mutual Fund and the Unit holders as mentioned hereinafter. It may however be noted that the information given hereinafter is only for general information purposes and is based on the advice received by the AMC regarding the law and practice currently in force in India and the Investors/ Unit holders should be aware that the relevant fiscal rules or their interpretation may change or it may not be acceptable to the tax authorities. As is the case with any interpretation of any law, there can be no guarantee that the tax position or the proposed tax position prevailing at

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the time of an investment in the Scheme will be accepted by the tax authorities or will continue to accepted by them indefinitely. Further statements with regard to tax benefits mentioned herein below are mere expressions of opinion and are not representations of the Mutual Fund to induce any investor to acquire units whether directly from the Mutual Fund or indirectly from any other persons by the secondary market operations. In view of the above, and since the individual nature of tax consequences may differ in each case on its merits and facts, each Investor / Unit holder is advised to consult his / her or its own professional tax advisor with respect to the specific tax implications arising out of its participation in the Scheme, as a unit holders. In view of the above, it is advised that the unit holders appropriately consult their investment / tax advisors in this regard. Tax Benefits to the Mutual Fund : Reliance Mutual Fund is a Mutual Fund registered with the Secur ities & Exchange Board of India and hence the entire income of the Mutual Fund will be exempt from income tax in accordance with the provisions of Section 10(23D) of the Income-tax Act, 1961, (the Act). The Mutual Fund will receive all income without any deduction of tax at source under the provisions of Section 196(iv) of the Act. Income distribution, if any, made by the Mutual Fund will attract distribution tax under Section 115R of the Act, calculated at the rate of 14.025 per cent (inclusive of surcharge on income-tax at 10 per cent and an additional surcharge by way of education cess at the rate of 2 per cent on the amount of tax inclusive of surcharge) in case income is distributed to individuals and Hindu Undivided Families (HUFs), and calculated at the rate of 22.44 per cent (inclusive of surcharge on income-tax at 10 per cent and an additional surcharge by way of education cess at the rate of 2 per cent on the amount of tax inclusive of surcharge as per the Act) in case income is distributed to persons other than individuals and HUFs. An exemption has been granted under the Finance (No.2) Act, 2004 to open ended equity oriented mutual funds from paying distribution tax on income distributed without any time limit, effective from 1 April 2004. Income-tax Tax on Income distribution Income distributed by the Mutual Fund All Unit holders Income received by unit holders in respect of the units of the Mutual Fund, is exempt from tax under Section 10(35) of the Act. Tax Deduction at Source All Unit holders In view of the exemption of income in the hands of the Unit holders, no income tax is deductible at source, on income distribution by the Mutual Fund on or after April 1, 2003, under the provisions of Sections 194K and 196A of the Act. As per section 196B of the Act, tax is required to be deducted at the rate of 11.22 per cent (inclusive of surcharge on income-tax at the rate of 10 per cent and an additional surcharge by way of education cess at the rate of 2 per cent on the amount of tax inclusive of surcharge) from income payable in respect of

93

units purchased in foreign currency to approved overseas financial organizations. Tax on Capital Gains Long-term Capital Gains On units of Equity Oriented Funds : Section 10(38) of the Act grants exemption to any income arising from the transfer of a long term capital asset, being units of an equity oriented fund provided the transaction giving rise to the capital gains, attracts Securities Transaction Tax (STT) and is made on or after 1st October 2004 i.e the date on which Chapter VII of the Finance (No. 2) Act, 2004 has come into force. For this purpose "equity oriented fund" means where the investible funds are invested by the Mutual Fund in equity shares in domestic companies to the extent of more than fifty percent of the total proceeds of such fund set up under a scheme of a Mutual Fund specified under clause 10(23D) of the Act. On units of funds other than Equity Oriented Funds: Long-term capital gains (other than long-term capital gains exempted by Sec. 10(38) of the Act, discussed elsewhere in this document) in respect of units, held for a period of more than 12 months, will be chargeable under Sec. 112 of the Act, at the rate of 20 per cent. However, where the tax payable on such long-term capital gains, computed before indexation, exceeds 10% of the amount of capital gains, such excess tax shall not be payable by the unit holder. In case of resident individuals and HUFs, where the total income as reduced by long-term capital gains, is below the basic exemption limit, the long-term capital gains will be reduced to the extent of the shortfall and only the balance long-term capital gains will be subjected to the 20 per cent tax or the 10 per cent as the case may be. The said tax rate would be increased by a surcharge of 10 per cent in case of non-corporate unit holders, where the total income exceeds Rs. 10,00,000. In the case of corporate unit holders, the 10 per cent surcharge is payable irrespective of the amount of taxable income. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Where the total income of an assessee includes any long-term capital gains on equity oriented units the deduction under section 80C shall be allowed from the income tax on the total income as reduced by such long term capital gains. Short-term Capital Gains On units of Equity Oriented Funds : Under Sec. 111A of the Act, where the total income of an assessee includes any income chargeable under the head "Capital Gains", arising from the transfer of a short-term capital asset, being a unit of an equity oriented fund and

(a) the transaction of sale of such unit is entered into on or after 1st October 2004, i.e. the date on which Chapter VII of the Finance (No. 2) Act, 2004 has come into force; and

(b) such transaction is chargeable to securities transaction tax under that Chapter, the tax payable by the assessee on such short- term capital gains is at the rate of ten per cent.

In case of resident individuals and HUFs, where the total income as reduced by the short- term capital gains, is below the basic exemption limit, the short-term capital gains will be reduced to the extent of the shortfall and only the balance short-term capital gains will be subjected to the 10 per cent tax rate.

94

The said tax rate would be increased by a surcharge of 10 per cent in case of non-corporate Unit holders, where the total income exceeds Rs. 10,00,000 In the case of corporate Unit holders, the 10 per cent surcharge is payable irrespective of the amount of taxable income. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Where the total income of an assessee includes any short-term capital gains on equity oriented units the deduction under section 80C shall be allowed from the income tax on the total income as reduced by such short term capital gains. On units of funds other than Equity Oriented Funds: Short-term capital gains in respect of units held for not more than 12 months is added to the total income of the assessee and taxed at the applicable slab rates specified by the Act. Foreign Institutional Investors: Long-term capital gains arising on sale/repurchase of units, held for a period of more than twelve months, would be taxed at the rate of 10 per cent under Section 115AD of the Act (subject to the exemption of tax on long-term capital gains provided for in Sec. 10(38) of the Act, discussed elsewhere in this document). The said tax rate would be increased by a surcharge of 2.5 per cent. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Such gains would be calculated without inflation index and currency fluctuations. Short-term capital gains arising on sale/repurchase of units would be taxed at 30 per cent (10% if such short term capital gains is of the nature referred in section 111A of the Act, discussed elsewhere in this document). The said applicable tax rate would be increased by 2.5 per cent surcharge. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Specified overseas financial organizations: As per the provisions of section 115AB of the Act, long-term capital gains arising on sale/repurchase of units purchased in foreign currency shall be liable to tax at the rate of 10 per cent. The said tax rate would be increased by 10% per cent surcharge. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. However, such gains shall be computed without the benefit of cost indexation. Short-term capital gains arising on sale/repurchase of units would be taxed at 40 per cent in case of foreign companies and 30 per cent in case of others. The said tax rate would be increased by applicable surcharge of 10 per cent in case of non-corporate Unit holders, where the total income exceeds Rs. 10,00,000 . The 10 per cent surcharge is payable in the case of corporate Unit holders irrespective of the amount of taxable income. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Securities Transaction Tax As per the Finance Bill, 2005, Securities Transaction Tax (STT), which came into force with effect from October 1, 2004 shall be payable at the rate of 0.20 per cent by the seller on the sale of an equity-oriented fund to the mutual fund. Tax Treaty : In the case of a non-resident unit holder who is resident of a country with which India has signed a Double Taxation Avoidance Agreement (DTAA), which is in force, income tax is payable at the rate provided in the Act

95

or at the rate provided in the such agreement, whichever is more beneficial to such non resident unit holder. In order to obtain the benefit of the lower rate under the DTAA, the unit holder would be required to provide a certificate from his Assessing Officer stating his eligibility for the lower rate. Dividend Stripping All Unit holders : As per Section 94(7) of the Act, loss arising on sale of Units, which are bought within 3 months prior to the record date (i.e. the date fixed by the Mutual Fund for the purposes of entitlement of the Unit holders to receive the income) and sold within 9 months after the record date, shall be ignored for the purpose of computing income chargeable to tax to the extent of exempt income received or receivable on such Units. Bonus stripping All Unit holders : As per section 94 (8) of the Act wherein in case of units purchased within a period of three months prior to the record date for entitlement of bonus and sold within nine months after the record date, the loss arising on transfer of original units shall be ignored for the purpose of computing the income chargeable to tax. The amount of loss so ignored shall be deemed to be the cost of acquisition/purchase of such bonus units as are held by it/him on the date of such sale/transfer. Tax Deduction at Source on Capital Gains Domestic Unit holders: No income tax is deductible at source from income by way of capital gains under the provisions of the Act. Foreign Institutional Investors : Under Section 196D of the Act, no deduction shall be made from any income by way of capital gains, in respect of transfer of units referred to in Section 115AD of the Act. Specified overseas financial organizations : As per section 196B of the Act, income tax is deductible on long-term capital gains (other than long-term capital gain on units of equity oriented mutual funds on which exemption under Sec. 10(38) is applicable) arising on repurchase of units purchased in foreign currency, at the rate of 10 per cent. The said tax rate would be increased by applicable surcharge of 10% per cent in case of corporate Unit holders irrespective of the amount of taxable income. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. Income tax is deductible on short-term capital gains arising on sale / repurchase of units at the rate of 40 per cent plus applicable surcharge at the rate of 10 per cent in case of foreign companies. Further, an additional surcharge of 2 per cent by way of education cess would be deducted on amount of tax inclusive of surcharge Other Non-resident Unit holders : In the case of a non-resident other than a company: Income tax is deductible on long-term capital gains (other than long-term capital gain on units of equity oriented mutual funds on which exemption under Sec. 10(38) is applicable) arising on repurchase of units at the rate of 20 per cent. Income tax is deductible on short-term capital gains arising on sale / repurchase of units at the rate of 30 per cent

96

The above tax rates would be increased by a surcharge of 10 per cent, where the total income exceeds Rs. 10,00,000. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. In the case of a foreign company: Income tax is deductible on long-term capital gains (other than long-term capital gain on units of equity oriented mutual funds on which exemption under Sec. 10(38) is applicable) arising on repurchase of units at the rate of 20 per cent. Income tax is deductible on short-term capital gains arising on sale / repurchase of units at the rate of 40 per cent The above tax rates would be increased by a surcharge of 2.5 per cent. Further, an additional surcharge of 2 per cent by way of education cess would be charged on amount of tax inclusive of surcharge. In accordance with the provisions of Circular no.728 dated October 30, 1995 issued by the Central Board of Direct Taxes ('CBDT'), in case of a non resident unit holder who is a resident of a country with which India has signed a Double Taxation Avoidance Agreement (DTAA) , which is in force, the tax should be deducted at source under section 195 of the Act at the rate provided in the Finance Act of the relevant year or the rate provided in the said agreement, whichever is more beneficial to such non-resident unit holder. In order to obtain the benefit of the lower rate under the DTAA, the unit holder would be required to provide a certificate from his Assessing Officer stating his eligibility for the lower rate. Exemptions from long-term capital gains (I) As per Sec 10(38) of the Act, any long-term capital gains arising from the sale of

units of an equity-oriented fund entered into on or after October 1, 2004 and such transaction of sale is chargeable to STT, shall be exempt form tax.

(II) As per the provisions of section 54EC of the Act, long-term capital gains (other than long-term capital gains on units of equity oriented mutual funds on which exemption under Sec. 10(38) is applicable) shall be exempt from tax to the extent such capital gains are invested, within a period of six months of such transfer, in acquiring notified bonds. However, if the said bonds are transferred within a period of 3 years from the date of their acquisition, the amount of capital gains exempted earlier would become chargeable to tax as long-term capital gains in the year in which the bonds are transferred.

(III) As per the provisions of section 54ED of the Act, long-term capital gains (other than long-term capital gains on units of equity oriented mutual funds on which exemption under Sec. 10(38) is applicable) arising on transfer of long-term assets, being listed securities or units shall be exempt from tax to the extent such capital gains are invested, within a period of six months of such transfer, in acquiring the equity shares forming part of a eligible public issue of an Indian public company and remain so invested as specified

(IV) As per the provisions of Sec 54F of the Act in the case of an individual or a HUF, long-term capital gains (other than long-term capital gains on units of equity oriented mutual funds on which exemption under Sec. 10(38) is applicable) arising on transfer of a long-term capital asset (not being a residential

97

house) are not chargeable to tax if the entire net consideration received on such transfer is invested within the prescribed period in a residential house. If part of such net consideration is invested within the prescribed period in a residential house, then proportionate exemption is available.

Other Benefits : (i).Investments in Units of the Mutual Fund will rank as an eligible form of investment under Section 11 (5) of the Act read with Rule 17C of the Income-tax Rules, 1962, for Religious and Charitable Trusts. (ii). Wealth-tax: Units held under the respective Plans are not treated as assets as defined under Section 2(ea) of the Wealth-tax Act, 1957 and thereof would not liable to wealth-tax. (iii). Gift-tax: The Gift-tax Act, 1958 has ceased to apply to gifts made on or after October 1, 1998. Gifts of Units, purchased under the respective Plans, would therefore, be exempt from gift- tax. The tax benefits to the Mutual Fund and Unit Holders is in accordance with the prevailing tax laws. EACH INVESTOR IS ADVISED TO CONSULT HIS OR HER OWN TAX CONSULTANT WITH RESPECT TO THE SPECIFIC TAX IMPLICATIONS ARISING OUT OF HIS OR HER PARTICIPATION IN THE SCHEME.

X. CONDENSED FINANCIAL INFORMATION Historical Per Unit Statistic Reliance Short Term Fund

Date of allotment 24-Dec-02

Apr 2004 to Mar. 31, 2005

April 01, 2005 to Jan 13, 2006

2003 – 2004

2002 - 2003

NAV At The Beginning of the period Growth Plan 10.9158 11.4960 10.1626 10.0154 Bonus Plan 10.9158 N.A 10.1626 N.A Dividend Plan 10.0529 10.4818 10.0848 N.A Daily Dividend Plan N.A N.A N.A N.A Weekly Dividend Plan N.A N.A N.A N.A Monthly Dividend Plan N.A N.A N.A N.A Quarterly Dividend Plan N.A N.A N.A N.A Net Income Per Unit 4.74 0.54 0.82 0.14 Dividends: Monthly Dividend plan 0.10 Nil Nil N.A Quarterly Dividend Plan Nil Nil Nil 0.07 Daily Dividend Plan Nil Nil Nil N.A Weekly Dividend Plan Nil Nil Nil N.A Dividend (Re Investment) Plan Nil 0.63 0.67 N.A Institutional Monthly Dividend Plan 0.13 Nil Nil N.A Transfer To Reserve (if Any) Nil Nil Nil 6.22

98

NAV at the End of the Period Growth Plan 11.4960 12.0186 10.9111 10.1626 Monthly Dividend plan N.A N.A N.A. N.A Quarterly Dividend Plan N.A 11.9970 N.A. N.A Bonus Plan N.A N.A 10.9111 10.1626 Dividend Re-Investment Plan 10.4818 10.3026 10.0486 N.A Daily Dividend Plan N.A N.A N.A N.A Weekly Dividend Plan N.A N.A N.A N.A Dividend Plan N.A N.A 10.0848 N.A. Institutional – Dividend N.A N.A N.A. N.A. Institutional – Growth N.A N.A N.A. N.A. Returns in (%) 6.59% 6.60% 7.35% 1.49% Benchmark Returns in (%) 4.45% 4.31% 1.31% Crisil Liquid Fund Index Net Assets at the end of the period (Rs. In Crs.) 52.98 254.23 674.33

303.86

Ratio of Recurring expenses to Net Assets (%) 0.52% 0.65% 0.55%

0.009%

Historical Per Unit Statistic Reliance Floating Rate Fund

Date of allotment 2-Sep-04

Sept 2, 2004 to Mar. 31, 2005

April 01, 2005 to Jan 13, 2006

NAV At The Beginning of the period Growth Plan 10.0044 10.2963 Bonus Plan 10.0044 N.A Dividend Plan 10.0044 N.A Daily Dividend Plan N.A 10.0447 Weekly Dividend Plan N.A 10.0668 Monthly Dividend Plan N.A 10.0687 Quarterly Dividend Plan N.A N.A. Net Income Per Unit 0.45 0.63 Dividends: Monthly Dividend plan 0.15 0.38 Quarterly Dividend Plan N.A N.A Daily Dividend Plan N.A 0.41 Weekly Dividend Plan N.A 0.41 Dividend (Re Investment) Plan N.A N.A Institutional Monthly Dividend Plan N.A N.A Transfer To Reserve (if Any) Nil Nil NAV at the End of the Period Growth Plan 10.2963 10.7443 Monthly Dividend plan 10.0687 10.1176 Quarterly Dividend Plan N.A N.A Bonus Plan N.A N.A

99

Dividend Re-Investment Plan N.A N.A Daily Dividend Plan 10.0447 10.0624 Weekly Dividend Plan 10.0668 10.0866 Dividend Plan N.A N.A Institutional – Dividend N.A N.A Institutional – Growth N.A N.A Returns in (%) 2.92% 4.34% Benchmark Returns in (%) 2.48% 3.67% Crisil Liquid Fund Index Net Assets at the end of the period (Rs. In Crs.) 958.04 678.95 Ratio of Recurring expenses to Net Assets (%) 0.53% 0.55%

Historical Per Unit Statistic Reliance Monthly Income Plan

Date of allotment 13-Jan-04

Apr 2004 to Mar. 31, 2005

April 01, 2005 to Jan 13, 2006 2003 – 2004

NAV At The Beginning of the period Growth Plan 10.1318 10.6687 10.0201 Bonus Plan N.A N.A N.A Dividend Plan N.A N.A N.A Daily Dividend Plan N.A N.A N.A Weekly Dividend Plan N.A N.A N.A Monthly Dividend Plan 10.1318 10.2073 N.A Quarterly Dividend Plan 10.1318 10.1692 N.A Net Income Per Unit 1.13 0.66 0.22 Dividends: Monthly Dividend plan 0.32 0.59 N.A Quarterly Dividend Plan 0.24 0.41 N.A Daily Dividend Plan N.A N.A N.A Weekly Dividend Plan N.A N.A N.A Dividend (Re Investment) Plan N.A N.A N.A Institutional Monthly Dividend Plan N.A N.A N.A Transfer To Reserve (if Any) Nil Nil Nil NAV at the End of the Period Growth Plan 10.6687 12.2498 10.1003 Monthly Dividend plan 10.2073 11.0890 10.1003 Quarterly Dividend Plan 10.1692 11.2424 10.1003 Bonus Plan N.A N.A N.A Dividend Re-Investment Plan N.A N.A N.A Daily Dividend Plan N.A N.A N.A Weekly Dividend Plan N.A N.A N.A Dividend Plan N.A N.A N.A Institutional – Dividend N.A N.A N.A Institutional – Growth N.A N.A N.A Returns in (%) 5.63% 13.96% 0.78% Benchmark Returns in (%) 2.37% 8.34% -0.16%

100

Crisil MIP Blended Index

Net Assets at the end of the period (Rs. In Crs.) 250.91 346.13 945.33

Ratio of Recurring expenses to Net Assets (%) 1.79% 2.00% 1.79%

Historical Cost Per Unit Statistic Reliance Banking Fund Date of allotment 28-May-03

Apr 2004 to Mar. 31, 2005

April 01, 2005 to Jan

13, 2006

2003 – 2004

NAV At The Beginning of the period Growth Option 18.3378 25.3447 10.0589 Bonus Option 18.3378 25.3545 N.A. Dividend Plan 16.9187 20.3438 N.A. Long Term Gilt Fund – Growth Option N.A. N.A. N.A. Short Term Gilt fund – Growth Option N.A. N.A. N.A. Long Term Gilt Fund – DM PLAN N.A. N.A. N.A. Short Term Gilt fund – Bonus Option N.A. N.A. N.A. Long Term Gilt Fund Dividend Re-investment Option N.A. N.A. N.A. Short Term Gilt Fund Dividend Re-investment Option N.A. N.A. N.A. Long Term Gilt Plan – AC Plan N.A. N.A. N.A. Net Income Per Unit 4.51 1.52 7.02 Dividend: Long Term Gilt Plan Dividend Plan N.A. 4.00 1.00 Dividend (Re Investment) Plan N.A. N.A N.A Short Term Gilt Plan Dividend (Re Investment) Plan N.A. N.A N.A Transfer to Reserve (if any) N.A. N.A N.A NAV at the End of period Growth Plan 25.3447 32.06 18.04 Bonus Plan 25.3545 32.06 18.04 Dividend Plan 20.3438 21.68 16.65 Dividend Re – Investment Option N.A. N.A N.A. Long Term Gilt Plan – Growth Option N.A. N.A. N.A. Short Term Gilt Plan – Growth Option N.A. N.A. N.A. Long Term Gilt Plan – Bonus Option N.A. N.A. N.A. Short Term Gilt Plan – Bonus Option N.A. N.A. N.A. Long Term Plan – Institutional Plan – Growth N.A. N.A. N.A. Short Term Plan – Institutional Plan – Growth N.A. N.A. N.A. Long Term Gilt Plan Dividend Re- Investment Option N.A N.A N.A Short Term Gilt Plan Dividend Re- Investment Option N.A N.A N.A Long Term Gilt Plan – AC Plan N.A N.A N.A

101

Long Term Gilt Plan – DM Plan N.A N.A N.A Long Term Gilt Plan – IG Plan N.A N.A N.A Returns in (%) 40.47% 24.12% 79.32% Benchmark Returns in (%) 23.53% 27.86% 78.99% S & P CNX Banks Index

Net Assets at the end of the period (Rs in Crs.) Ratio of Recurring expenses to Net Assets (%)

57.35 2.25

171.60 2.24

41.91 2.25

Historical Cost Per Unit Statistic

Reliance Gilt Securities Fund

Date of allotment 10-Jul-03

Apr 2004 to Mar. 31, 2005

April 01, 2005 to Jan

13, 2006

2003 – 2004

NAV At The Beginning of the period Growth Option N.A. N.A. N.A Bonus Option N.A. N.A. N.A Dividend Plan N.A. N.A. N.A Long Term Gilt Fund – Growth Option 10.9783 11.4206 10.0162 Short Term Gilt fund – Growth Option 10.5468 10.6506 10.0065 Long Term Gilt Fund – DM PLAN 10.9783 11.4256 10.0162 Short Term Gilt fund – Bonus Option N.A. N.A. N.A Long Term Gilt Fund Dividend Re-investment Option 10.5335 10.8628 10.0162 Short Term Gilt Fund Dividend Re-investment Option 10.1621 N.A. 10.0066 Long Term Gilt Plan – AC Plan 10.9783 11.5563 N.A

Net Income Per Unit 0.06 – LTP 0.55 - LTP 4.568 –

LTP

(0.74) – STP 1.40 - STP 6.526 –

STP Dividend: Long Term Gilt Plan Dividend Plan N.A 0.4900 N.A. Dividend (Re Investment) Plan 0.0943 N.A 0.1221 Short Term Gilt Plan Dividend (Re Investment) Plan 0.0943 N.A 0.3258 Transfer to Reserve (if any) N.A N.A N.A NAV at the End of period Growth Plan N.A. N.A. N.A Bonus Plan N.A. N.A N.A Dividend Plan N.A. N.A N.A. Dividend Re – Investment Option N.A. N.A N.A Long Term Gilt Plan – Growth Option 11.4206 12.0314 10.9298 Short Term Gilt Plan – Growth Option 10.6506 10.9946 10.5432 Long Term Gilt Plan – Bonus Option N.A N.A 10.9298 Short Term Gilt Plan – Bonus Option N.A N.A 10.5432 Long Term Plan – Institutional Plan – Growth N.A N.A N.A Short Term Plan – Institutional Plan – Growth N.A N.A N.A

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Long Term Gilt Plan Dividend Re- Investment Option 10.8628 10.9422 10.4869 Short Term Gilt Plan Dividend Re- Investment Option N.A N.A 10.1586 Long Term Gilt Plan – AC Plan 11.5563 12.0314 N.A Long Term Gilt Plan – DM Plan 11.4256 12.0314 N.A Long Term Gilt Plan – IG Plan N.A N.A N.A

Historical Cost Per Unit Statistic

Reliance Gilt Securities Fund

Date of allotment 10-Jul-03

Apr 2004 to Mar. 31, 2005

April 01, 2005 to Jan

13, 2006

2003 – 2004

Returns in (%)

4.03% - RGSF -LTP 0.98% -

RGSF -STP

5.34% - RGSF -

LTP 3.22% - RGSF -

STP

9.19% - RGSF –

LTP 5.36% - RGSF –

STP

Benchmark Returns in (%)

(2.46)%- I Sec Li Bex

3.35%- I Sec Si Bex

5.58% - RGSF –

LTP 4.07% - RGSF –

STP

8.01% - RGSF –

LTP 4.77% - RGSF –

STP

Long Term Plan - I Sec Li-BEX Short Term Plan - I Sec Si-Bex

Net Assets at the end of the period (Rs in Crs.) 138.57– RGSF- LTP

129.97- RGSF-

LTP

120.46 – RGSF –

LTP

7.13 – RGSF- STP

1.01-RGSF-STP

6.61 – RGSF –

STP

Ratio of Recurring expenses to Net Assets (%) 1.25 – RGSF- LTP

1.25-RGSF-STP

0.465 – RGSF-

LTP

1.25 – RGSF- STP

1.25-RGSF-LTP

0.60 – RGSF-

STP Historical Cost Per Unit Statistic RELIANCE

REGULAR SAVING FUND –

DEBT

RELIANCE REGULAR

SAVING FUND - EQUITY

RELIANCE REGULAR

SAVING FUND – HYBRID

Date of allotment 9-Jun-05 June 09, 2005 to June 09, 2005 to June 09, 2005

103

Jan 13,2006 Jan 13,2006 to Jan 13,2006 NAV At The Beginning of the period

Growth Option 10.0275 10.0242 10.0269 Net Income Per Unit 0.01 - 0.00 Dividend: Dividend Plan NIL NIL NIL Transfer to Reserve (if any) NIL NIL NIL NAV at the End of period Growth Option 10.1854 10.1581 10.1409 Returns in (%) 1.57% 1.34% 1.14% Benchmark Returns in (%) 2.76% 35.82% 6.94%

CRISIL Composite Bond

Fund Index BSE 100 CRISIL MIP

Blended Index Net Assets at the end of the period (Rs in Crs.) 0.47 11.32 0.90 Ratio of Recurring expenses to Net Assets (%) 1.75 2.50 2.25

Historical Per Unit Statistic RELIANCE LIQUIDITY FUND

Date of allotment 16-Jun-05 June 16, 2005 to Jan 13,2006

NAV At The Beginning of the period Growth Plan 10.0014 Bonus Plan NA Daily Dividend Plan 10.0000 Weekly Dividend Plan 10.0014 Monthly Dividend Plan Net Income Per Unit 0.35 Dividends: Daily Dividend Plan 0.37 Weekly Dividend Plan 0.38 Monthly Dividend Plan 0.04 Transfer To Reserve (if Any) Nil NAV at the End of the Period Growth Plan 10.3260 Bonus Plan NA Daily Dividend Plan 10.0031 Weekly Dividend Plan 10.0019 Monthly Dividend Plan 10.2549 Returns in (%) 3.25% Benchmark Returns in (%) 2.67% Crisil Liquid Fund Index Net Assets at the end of the period (Rs. In Crs.) 1,606.59 Ratio of Recurring expenses to Net Assets (%) 0.40%

Historical Cost Per Unit Statistic FIXED MATURITY FUND SERIES-I FIXED

104

-AP1 MATURITY FUND SERIES -

II - AP1 Date of allotment 31-Mar-05 6-May-05

MAR. 31, 2005 to Mar. 31, 2005

April 01, 2005 to Jan 13,2006

May 6, 2005 to Jan 13,2006

NAV at the beginning of the period (Rs.)

Growth Plan N.A 10.0022 10.0013 Bonus Plan N.A N.A N.A Annual Dividend Plan N.A N.A N.A Half-yearly Dividend Plan N.A N.A N.A Quarterly Dividend Plan N.A N.A N.A Monthly Dividend Plan N.A N.A N.A Dividend Plan N.A 10.0022 10.0013 Dividend (Re-investment) Plan N.A N.A N.A Weekly Dividend (Re-investment) Option N.A N.A N.A Transfer to Reserve (If Any) NIL NIL NIL Net Income Per Unit 0.0034 0.5600 0.4600 Total Dividends paid per unit during the period * (Rs.) Annual Dividend Plan N.A N.A N.A Half-yearly Dividend Plan N.A N.A N.A Quarterly Dividend Plan N.A N.A N.A Monthly Dividend Plan N.A N.A N.A Dividend Plan N.A N.A N.A Dividend (Re-investment) Plan N.A N.A N.A Weekly Dividend (Re-investment) Option N.A N.A N.A NAV at the end of the period Growth Plan 10.0022 10.4865 10.4065 Bonus Plan N.A N.A N.A Annual Dividend Plan N.A N.A N.A Half-yearly Dividend Plan N.A N.A N.A Quarterly Dividend Plan N.A N.A N.A Monthly Dividend Plan N.A N.A N.A Dividend Plan 10.0022 10.4865 10.4065 Dividend (Re-investment) Plan N.A N.A N.A Weekly Dividend (Re-investment) Option N.A N.A N.A Returns in (%) 0.17% 4.86% 4.05% Benchmark Returns in (%) N.A N.A 3.06% CRISIL SHORT TERM BOND FUND INDEX Net Assets at end of the period (Rs. Cr.) 201.74 210.30 171.52 Ratio of Recurring

105

Expenses to Net Assets (%) 0.20 0.20 0.25

Historical Cost Per Unit Statistic

FIXED MATURITY FUND SERIES-II -AP II

FIXED MATURITY FUND SERIES II QP2

FIXED MATURITY FUND SERIES II AP3

Date of allotment 25-May-05 26-Oct-05 5-Aug-05

May 25, 2005 to Jan 13,2006

October 26, 2005 to Jan 13,2006

Aug 05, 2005 to Jan 13,2005

NAV at the beginning of the period (Rs.)

Growth Plan 10.0087 10.0031 10.0013 Bonus Plan N.A N.A N.A Annual Dividend Plan N.A N.A N.A Half-yearly Dividend Plan N.A N.A N.A Quarterly Dividend Plan N.A N.A N.A Monthly Dividend Plan N.A N.A N.A Dividend Plan 10.0087 10.0031 10.0013 Dividend (Re-investment) Plan N.A N.A N.A Weekly Dividend (Re-investment) Option N.A N.A N.A Transfer to Reserve (If Any) Net Income Per Unit 0.3500 0.1300 0.28 Total Dividends paid per unit during the period * (Rs.) Annual Dividend Plan N.A N.A N.A Half-yearly Dividend Plan N.A N.A N.A Quarterly Dividend Plan N.A N.A N.A Monthly Dividend Plan N.A N.A N.A Dividend Plan N.A N.A N.A Dividend (Re-investment) Plan N.A N.A N.A Weekly Dividend (Re-investment) Option N.A N.A N.A NAV at the end of the period Growth Plan 10.3300 10.1278 10.2474 Bonus Plan N.A N.A N.A Annual Dividend Plan N.A N.A N.A Half-yearly Dividend Plan N.A N.A N.A Quarterly Dividend Plan N.A N.A N.A Monthly Dividend Plan N.A N.A N.A Dividend Plan 10.3300 10.1278 10.2474 Dividend (Re-investment) Plan N.A N.A N.A Weekly Dividend (Re-investment) Option N.A N.A N.A Returns in (%) 3.21% 1.25% 2.46% Benchmark Returns in (%) 2.73% 1.03% 1.64% CRISIL SHORT TERM BOND FUND INDEX

106

Net Assets at end of the period (Rs. Cr.) 5.93 933.71 168.54 Ratio of Recurring Expenses to Net Assets (%) 0.60 0.11 0.20

Historical Cost Per Unit Statistic

FIXED MATURITY FUND SERIES II MP9

Date of allotment 2-Jan-06

Jan 2,2006 to Jan 13,2006

NAV at the beginning of the period (Rs.)

Growth Plan 10.0015 Bonus Plan N.A Annual Dividend Plan N.A Half-yearly Dividend Plan N.A Quarterly Dividend Plan N.A Monthly Dividend Plan N.A Dividend Plan 10.0015 Dividend (Re-investment) Plan N.A Weekly Dividend (Re-investment) Option N.A Transfer to Reserve (If Any) Net Income Per Unit 0.10 Total Dividends paid per unit during the period * (Rs.) Annual Dividend Plan N.A Half-yearly Dividend Plan N.A Quarterly Dividend Plan N.A Monthly Dividend Plan N.A Dividend Plan N.A Dividend (Re-investment) Plan N.A Weekly Dividend (Re-investment) Option N.A NAV at the end of the period Growth Plan 10.0196 Bonus Plan N.A Annual Dividend Plan N.A Half-yearly Dividend Plan N.A Quarterly Dividend Plan N.A Monthly Dividend Plan N.A Dividend Plan 10.0196 Dividend (Re-investment) Plan N.A Weekly Dividend (Re-investment) Option N.A

107

Returns in (%) 0.18% Benchmark Returns in (%) 0.30%

CRISIL SHORT TERM BOND FUND INDEX Net Assets at end of the period (Rs. Cr.) 591.88 Ratio of Recurring Expenses to Net Assets (%) 0.10

Note : The details of Historical Per Unit Statistics of Reliance Fixed Maturity Fund Series I and Reliance Fixed Maturity Fund – Series II, the close-ended income schemes have been published for only those plans which are in operation as on January 13, 2006 (Yet to be redeemed/matured) Historical Cost Per Unit Statistic

Reliance Diversified Power Sector Fund

Date of allotment 30-Apr-04

Apr 2004 to Mar

31, 2005 April 01, 2005 to

Jan 13,2006 NAV At The Beginning of the period

Growth Option 10.0404 14.3074 Bonus Option 10.0404 14.3079 Dividend Plan 10.0404 14.3085 Net Income Per Unit 0.41 2.23 Dividend: Dividend Plan NIL 4.00 Transfer to Reserve (if any) NIL NIL NAV at the End of period Growth Option 14.3074 23.2278 Bonus Option 14.3079 23.2278 Dividend Plan 14.3085 19.2515 Returns in (%) 42.49% 58.75% Benchmark Returns in (%) 11.33% 42.05% India Power Index Net Assets at the end of the period (Rs in Crs.) 317.15 495.09 Ratio of Recurring expenses to Net Assets (%) 2.00 2.05

Historical Cost Per Unit Statistic Reliance Pharma Fund Date of allotment 6-Jun-04

Jun 2004 to Mar

31, 2005 April 01, 2005 to

Jan 13,2006 NAV At The Beginning of the period

108

Growth Option 10.0048 12.1514 Bonus Option 10.0048 12.1513 Dividend Plan 10.0048 12.1515 Net Income Per Unit 0.45 1.78 Dividend: Dividend Plan NIL 1.00 Transfer to Reserve (if any) NIL NIL NAV at the End of period Growth Option 12.1514 18.5626 Bonus Option 12.1513 18.5626 Dividend Plan 12.1515 17.4651 Returns in (%) 21.46% 50.43% Benchmark Returns in (%) 13.68% 25.22% BSE Health Care Index Net Assets at the end of the period (Rs in Crs.) 145.48 175.06 Ratio of Recurring expenses to Net Assets (%) 2.13 2.17 Historical Cost Per Unit Statistic Reliance Media & Entertainment Fund Date of allotment 7-Oct-04

Oct 2004 to Mar

31, 2005 April 01, 2005 to

Jan 13,2006 NAV At The Beginning of the period

Growth Option 10.008 10.3457 Bonus Option 10.008 10.2461 Dividend Plan 10.008 10.3469 Net Income Per Unit 0.4 1.70 Dividend: Dividend Plan NIL 1.00 Transfer to Reserve (if any) NIL NIL NAV at the End of period Growth Option 10.3457 15.8238 Bonus Option 10.2461 15.8238 Dividend Plan 10.3469 14.8230 Returns in (%) 3.37% 49.73% Benchmark Returns in (%) -276.00% 28.62%

S&P CNX Media & Entertainment

Index Net Assets at the end of the period (Rs in Crs.) 20.44 45.05 Ratio of Recurring expenses to Net Assets (%) 2.26 2.23

Historical Cost Per Unit Statistic Reliance NRI Equity Fund Date of allotment 16-Nov-04

Nov 2004 to Mar 31, April 01, 2005

109

2005 to Jan 13,2006 NAV At The Beginning of the period

Growth Option 10.0295 11.3381 Bonus Option 10.0295 11.3381 Dividend Plan 10.0295 11.3381 Net Income Per Unit 1.15 5.380 Dividend: Dividend Plan NIL NIL Transfer to Reserve (if any) NIL NIL NAV at the End of period Growth Option 11.3381 16.7389 Bonus Option 11.3381 16.7389 Dividend Plan 11.3381 16.7389 Returns in (%) 11.34% 44.92% Benchmark Returns in (%) 10.62% 35.82% BSE 200 Index Net Assets at the end of the period (Rs in Crs.) 88.88 103.53 Ratio of Recurring expenses to Net Assets (%) 2.50 2.47 Historical Cost Per Unit Statistic

Reliance NRI Income Fund

Date of allotment 16-Nov-04

Nov 2004 to Mar 31, 2005

April 01, 2005 to Jan 13,2006

NAV At The Beginning of the period

Growth Option 10.0234 10.1701 Bonus Option 10.0234 N.A Dividend Plan 10.0234 10.1942 Net Income Per Unit 1.00 0.470 Dividend: Dividend Plan NIL NIL Transfer to Reserve (if any) NIL NIL NAV at the End of period Growth Option 10.1701 10.5021 Bonus Option N.A N.A Dividend Plan 10.1942 10.5021 Returns in (%) 1.46% 3.25% Benchmark Returns in (%) 3.22% 3.66% CRISIL Composite Bond Fund Index Net Assets at the end of the period (Rs in Crs.) 2.29 1.45 Ratio of Recurring expenses to Net Assets (%) 1.53 1.5

Historical Cost Per Unit Statistic Reliance Index Fund – Sensex Plan

110

Date of allotment 8-Feb-05

Feb 2005 to Mar 31, 2005

April 01, 2005 to Jan 13,2006

NAV At The Beginning of the period Growth Option 9.9807 9.8194 Bonus Option 9.9807 9.8194 Dividend Plan 9.9807 9.8194 Net Income Per Unit 0.3 0.730 Dividend: Dividend Plan NIL NIL Transfer to Reserve (if any) NIL NIL NAV at the End of period Growth Option 9.8194 14.3974 Bonus Option 9.8194 14.3974 Dividend Plan 9.8194 14.3974 Returns in (%) -1.81% 43.72% Benchmark Returns in (%) -0.79% 41.92% BSE Sensex Net Assets at the end of the period (Rs in Crs.) 0.85 0.89 Ratio of Recurring expenses to Net Assets (%) 1.5 1.47 Historical Cost Per Unit Statistic

Reliance Index Fund – Nifty Plan

Date of allotment 8-Feb-05

Feb 2005 to Mar 31, 2005

April 01, 2005 to Jan 13,2006

NAV At The Beginning of the period

Growth Option 9.9827 9.8834 Bonus Option 9.9827 9.8834 Dividend Plan 9.9827 9.8834 Net Income Per Unit 0.29 1.450 Dividend: Dividend Plan NIL NIL Transfer to Reserve (if any) NIL NIL NAV at the End of period Growth Option 9.8834 12.8414 Bonus Option 9.8834 12.8414 Dividend Plan 9.8834 12.8414 Returns in (%) -1.17% 28.23% Benchmark Returns in (%) -0.95% 37.86% S&P CNX Nifty Net Assets at the end of the period (Rs in Crs.) 2.15 1.27 Ratio of Recurring expenses to Net Assets (%) 1.5 1.37

111

Historical Cost Per Unit Statistic Reliance Equity Opportunities Fund Date of allotment 31-Mar-05

Mar-05 April 01, 2005 to

Jan 13,2006 NAV At The Beginning of the period

Growth Option 9.9382 9.9382 Bonus Option 9.9382 9.9382 Dividend Plan 9.9382 9.9382 Net Income Per Unit 0.02 1.67 Dividend: Dividend Plan NIL NIL Transfer to Reserve (if any) NIL NIL NAV at the End of period Growth Option 9.9382 14.7966 Bonus Option 9.9382 14.7966 Dividend Plan 9.9382 14.7966 Returns in (%) N.A. 47.97% Benchmark Returns in (%) N.A. 40.72% BSE 100 Index Net Assets at the end of the period (Rs in Crs.) 1761.59 1,922.45 Ratio of Recurring expenses to Net Assets(%) 1.92 1.90

Historical Cost Per Unit Statistic Reliance Fixed Tenor Fund

Date of allotment 23-Dec-05

Dec 23, 2005 to Jan 13,2005

NAV at the beginning of the period (Rs.) Growth Plan 10.0142 Bonus Plan N.A Annual Dividend Plan N.A Half-yearly Dividend Plan N.A Quarterly Dividend Plan N.A Monthly Dividend Plan N.A Dividend Plan 10.0142 Dividend (Re-investment) Plan N.A Weekly Dividend (Re-investment) Option N.A Transfer to Reserve (If Any) Net Income Per Unit 0.05 Total Dividends paid per unit during the period * (Rs.) Annual Dividend Plan N.A Half-yearly Dividend Plan N.A Quarterly Dividend Plan N.A

112

Monthly Dividend Plan N.A Dividend Plan N.A Dividend (Re-investment) Plan N.A Weekly Dividend (Re-investment) Option N.A NAV at the end of the period Growth Plan 10.0494 Bonus Plan N.A Annual Dividend Plan N.A Half-yearly Dividend Plan N.A Quarterly Dividend Plan N.A Monthly Dividend Plan N.A Dividend Plan 10.0494 Dividend (Re-investment) Plan N.A Weekly Dividend (Re-investment) Option N.A Returns in (%) 0.35% Benchmark Returns in (%) 0.47%

Crisil Short Term Bond Fund Index

Net Assets at end of the period (Rs. Cr.) 508.34 Ratio of Recurring Expenses to Net Assets (%) 0.15

Historical Cost Per Unit Statistic

Reliance Tax Saver (ELSS) Fund

Date of allotment 22-Sep-05

Sep 22,2005 to Jan 13,2006

NAV At The Beginning of the period

Growth Option 9.95 Bonus Option NA Dividend Plan 9.95 Net Income Per Unit 0.39 Dividend: Dividend Plan NIL Transfer to Reserve (if any) NIL NAV at the End of period Growth Option 11.27 Bonus Option NA Dividend Plan 11.27 Returns in (%) 12.71% Benchmark Returns in (%) 14.60% BSE 100 Index Net Assets at the end of the period (Rs in Crs.) 884.93 Ratio of Recurring expenses to Net Assets (%) 2.10

113

Note: wherever the scheme has not completed one year, absolute returns are given. All performance calculations are based only on NAV and the payouts to the unitholders. The annualised return is of Growth Plan/ Option. $ For calculation of compounded annualised returns, the procedure specified in Standard Offer Document is followed. The Benchmark indices for evaluating the performance of Debt-oriented Schemes were made available w.e.f. June 19, 2002. # No comparable index for Fixed Term Scheme. Return available for Period less than 1 year for the first accounting year (Irrespective of period of existence of the scheme) are given in absolute terms.

XI. OTHER MATTERS A. POWER TO MAKE RULES: Subject to the prior approval of SEBI / other applicable regulatory authorities, wherever necessary, RCAM may, from time to time, in consultation with the Trustees, prescribe such terms and make such rules for giving effect to the provisions of the scheme. Further, RCAM may in consultation with the Trustees, add to, alter and / or amend from time to time, all or any of the terms and conditions of the scheme, and the same will be in line with the then prevalent regulations of SEBI / other applicable regulatory authorities. B. POWER TO REMOVE DIFFICULTIES: If any difficulties arise in giving effect to the provisions of this Scheme, RCAM may, in consultation with the Trustees, do anything not inconsistent with such provisions, which appear to them to be necessary, desirable or expedient, for the purpose of removing such difficulty. C. SCHEME TO BE BINDING ON UNIT HOLDERS: RCAM may, from time to time, in consultation with the Trustees, add to or otherwise vary or alter all or any of the features, investment options and terms of this Scheme after obtaining the prior approval of SEBI / Other applicable regulatory authorities and / or the unit holders where necessary, in accordance with the then prevalent Regulations and the same shall be binding on each unitholder. D. BOOKS AND RECORDS: The books and records of the Mutual Fund will be maintained at the office of the Mutual Fund. The fiscal year of the Mutual Fund ends on 31st March in each year. E. TRANSACTIONS WITH ASSOCIATE COMPANIES : The AMC may, from time to time, for the purpose of conducting its normal business use the services of its Associates. AMC does not have any separate policy for investment in securities of the group companies. If at any time such investments are made, it will be done on pure commercial consideration for the benefit of the fund. As per current regulations no investment will be made in any unlisted security of an associate or group company of the sponsor and in any security issued by way of private placement by an associate or group company of the sponsor. Further, no investment will be made in listed securities of the group company of the sponsor, which is in excess of 25% of the net assets of the Scheme of the fund. Investment in group companies will be done only in the interest of the fund and as per the Regulations. The AMC may from time to time, for the purpose of conducting its normal business, use the services of the Sponsor and the subsidiaries. The AMC from time to time, for the purpose of conducting its normal business may use the services of the Associates of the Sponsor / AMC, in existence or to be established at a later date, in case such an associate is in a position to provide the requisite services to the AMC.

114

The AMC will conduct its business with the aforesaid companies on commercial terms and on an arms length basis and at the then prevailing market prices to the extent permitted under the applicable laws including the Regulations, after an evaluation of the competitiveness of the pricing offered by the associate companies and services to be provided by them. Should the Fund enter into any transaction with / through associates / group companies of Sponsor/ AMC, it shall do so as may be permitted by the Regulations and will disclose details of such investments or transactions in the manner required by the Regulations. 1.Underwriting obligations with respect to issues of Group/Associate Companies. The Reliance Mutual Fund under its entire Scheme has till date not entered into any underwriting contracts in respect of any public issue made by any of the group/associate companies of the Sponsor. 2. Subscription to issues lead managed by Group/ Associate Companies. No scheme of Reliance Mutual Fund has till date invested in any public issue lead managed by any Group/Associate company of the Sponsor. 3. Brokerage, Commission Paid. The Mutual Fund has paid the following brokerage to the associate Companies of the AMC. Year Business Given Brokerage paid % of Brokerage (Rs. in lacs) (Rs. in lacs) Commission 2000 – 2001 1,694.86 2.08 0.12 2001 – 2002 5.32 0.005 0.01 2002 – 2003 27,842.63 1.01 0.0036 2003 – 2004 37,249.65 1.50 0.0040 2004 – 2005 NIL NIL NIL 01.04.05 NIL NIL NIL - 13.01.06 4. Distribution of Units : Mutual Fund has till date not availed any services of associate companies of the Sponsor/AMC for distribution of Units. 5. Investments in Group Companies : The total investment in securities of Group companies under all the Schemes is disclosed below. Most of the equity shares, debentures, etc. were purchased from the open secondary market at relevant market prices over a period of time, based on the approved investment strategy

(At cost) (Rs.in lakhs)

Name of Scheme 2002-03 2003-04 2004-05 April 1, 05 to

Jan 13, 06 Reliance Growth Fund (RGF) 83.85 1889.35 1301.20 5563.05 Reliance Vision Fund (RVF) 216.49 12082.71 5545.49 1528.09 Reliance Income Fund (RIF) NIL NIL 2153.29 511.20 Reliance Liquid Fund (RLF) NIL NIL 1047.23 6338.99 Reliance Medium Term Fund (RMTF) NIL NIL NIL 1008.72 Reliance Short Term Fund (RSTF) NIL NIL 6295.93 4106.05 Reliance Fixed Term Scheme (RFTS) NIL NIL NIL Nil Reliance Banking Fund (RBF) NIL NIL NIL Nil

115

Reliance Gilt Securities Fund (RGSF) NIL NIL NIL Nil Reliance Monthly Income Plan (RMIP)

NIL NIL 7251.31 1214.75

Reliance Diversified Power Sector Fund (RDPSF)

N.A. N.A. 3488.32 560.63

Reliance Pharma Fund (RPF) N.A. N.A. NIL NIL Reliance Floating Rate Fund (RFRF) N.A. N.A. 4057.47 1018.50 Reliance Media & Entertainment Fund (RMEF)

N.A. N.A. NIL Nil

Reliance NRI Income Fund (RNIF) N.A. N.A. NIL Nil Reliance Index Fund (RInF) N.A. N.A. 141.47 12.60 Reliance NRI Equity Fund (RNEF) N.A. N.A. 873.82 733.98 Reliance Equity Opportunities Fund (REOF)

N.A. N.A. 11,648.96 3507.29

Reliance Liquidity Fund (RLiF) N.A. N.A. N.A. 1466.05 Reliance Tax Saver (ELSS) Fund (RTSF)

N.A. N.A. N.A. 6073.41

Reliance Fixed Tenor Fund (RFTF) N.A. N.A. N.A. 1466.73 Reliance Fixed Maturity Fund – Series I (RFMF – I)

Nil Nil Nil Nil

Reliance Fixed Maturity Fund – Series II (RFMF – II)

Nil Nil Nil Nil

Reliance Regular Savings Fund Nil Nil Nil Nil

As on January 13, 2006, the aggregate market value of the holding in group companies of the Sponsor/ AMC by RIF, RFMF, RMTF, RFTS, RBF, RLF, RPF, RMEF, RRSF, RMIP, RFRF, RRSF, RNIF was Nil and that of RGF is Rs.6547.30lacs, RVF is Rs.7081.20lacs, RIF is Rs.22.67lacs, REOF is Rs.18354.25lacs, RSTF is Rs.1061.62, RDPSF is Rs.36.38, RLiF is Rs.1466.05lacs, RTSF is Rs.1770.30lacs, which constitutes 2.89%,4.78%, 10.51%, 9.55%, 4.18%, 15.63%, 4.25%, 0.91%, 2.00% of Net Asset of respective schemes as on that day. 6. Disclosure under Regulation 25(11) This refers to the investment in Companies that hold more than 5% of NAV of any scheme managed by the AMC as defined under Regulation 25(11) of SEBI Regulations. Disclosure under Regulation 25(11) of SEBI (Mutual Funds) Regulations, 1996

Name of the Company

Investment during the period ended 13 January , 2006

Holding as on 13 January 2006

Type of Amount Amount

Security Quantity

Cost (Rs.in Lacs) Quantity

Market Value (Rs In Lacs)

RELIANCE INCOME FUND

116

ALLAHBAD BANK Certificate Of Deposit 1750 1723.08 0 0.00

HDFC BANK Certificate Of Deposit 1800 1729.92 1800 1735.14

INDUSIND BANK Certificate Of Deposit 1500 1482.74 0 0.00

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 10200 9882.15 6950 6776.31

UCO BANK Certificate Of Deposit 800 771.09 100 96.74

UTI BANK Certificate Of Deposit 200 195.87 0 0.00

YES BANK Certificate Of Deposit 2000 1987.70 1500 1494.74

GRASIM INDUSTRIES LTD Debt 100 99.12 0 0.00 HDFC BANK Debt 10 1121.91 0 0.00 HDFC LTD. Debt 3000 6794.51 0 0.00 ICICI BANK Debt 1600 1695.32 0 0.00 IDBI Debt 11795 17982.63 1000 1076.49 PUNJAB NATIONAL BANK Debt 150 1504.30 0 0.00 RELIANCE INDUSTRIES LTD. Debt 500 588.95 0 0.00 RELIANCE MEDIUM TERM FUND

ALLAHBAD BANK Certificate Of Deposit 500 472.85 0 0.00

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 50 48.35 0 0.00

HDFC BANK Debt 18 2020.34 0 0.00 HDFC LTD. Debt 150 1546.25 0 0.00 ICICI BANK Debt 1650 134.84 80 82.11 IDBI Debt 1500 1472.90 0 0.00 RELIANCE SHORT TERM FUND

ALLAHBAD BANK Certificate Of Deposit 4000 3778.87 0 0.00

HDFC BANK Certificate Of Deposit 50 47.96 50 47.97

INDUSIND BANK Certificate Of 3000 2954.17 100 99.26

117

Deposit THE JAMMU & KASHMIR BANK LTD

Certificate Of Deposit 6050 5755.50 550 530.15

UCO BANK Certificate Of Deposit 9700 9185.27 1300 1257.56

UTI BANK Certificate Of Deposit 2900 2752.56 0 0.00

BHARATI TELE VENTURES LTD. Debt 25 2359.96 0 0.00 GRASIM INDUSTRIES LTD Debt 2000 1982.39 0 0.00 HDFC BANK Debt 10 1149.00 0 0.00 HDFC LTD Debt 5790 15693.44 0 0.00 HINDALCO INDUSTRIES LIMITED Debt 500 509.97 500 510.64 ICICI BANK Debt 4350 4696.70 100 100.61 IDBI Debt 39160 34879.60 500 538.25 RELIANCE INDUSTRIES LTD. Debt 3550 3617.60 1050 1061.62 BANK OF INDIA Fixed Deposit 0 1500.00 0 0.00 ICICI BANK Fixed Deposit 0 100.00 0 0.00 IDBI Fixed Deposit 0 6000.00 0 0.00 THE JAMMU & KASHMIR BANK LTD Fixed Deposit 0 5000.00 0 0.00 RELIANCE BANKING FUND

ICICI BANK Certificate Of Deposit 500 481.00 0 0.00

ALLAHBAD BANK Equity 1200000 1009.99 600000 523.20 BANK OF BARODA Equity 400000 827.45 200000 485.50 BANK OF INDIA Equity 301025 371.39 300000 400.05 HDFC BANK Equity 120000 377.58 0 0.00 ICICI BANK Equity 609500 2554.03 275000 1606.00 IDBI Equity 800000 886.97 800000 827.60 IL & FS Equity 200000 368.51 125000 278.19 JM FINANCIALS LTD Equity 163360 696.87 125000 517.44 PUNJAB NATIONAL BANK Equity 700000 2409.83 330000 1537.97 UNION BANK OF INDIA Equity 450000 439.22 300000 386.10 UTI BANK Equity 100000 250.75 0 0.00

118

VIJAYA BANK Equity 1900000 907.90 0 0.00 ICICI BANK Fixed Deposit 0 400.00 0 0.00 RELIANCE PHARMA FUND HDFC LTD Debt 500 2476.40 0 0.00 RELIANCE DIVERSIFIED POWER SECTOR FUND IDBI Debt 1500 1535.28 0 0.00 CUMMINS INDIA LIMITED Equity 372879 563.47 372879 623.45 RELIANCE ENERGY LTD Equity 503451 3177.90 400000 2382.00 HDFC LTD Fixed Deposit 0 500.00 0 500.00 RELIANCE FTS - MP 16 ELECTROSTEEL CASTNGS LIMITED Debt 50 4998.16 0 0.00 ICICI BANK Debt 5000 4923.80 0 0.00 IDBI Debt 500 506.95 0 0.00 STERLITE INDUSTRIES INDIA LTD Debt 20 1002.09 0 0.00 INDUSIND BANK Fixed Deposit 0 3500.00 0 0.00 VIJAYA BANK Fixed Deposit 0 2100.00 0 0.00 RELIANCE FTS - MP 17 ICICI BANK Debt 7500 7394.88 0 0.00 IDBI Debt 1000 1008.49 0 0.00 INDUSIND BANK Fixed Deposit 0 3500.00 0 0.00 RELIANCE FTS - AP 3 IDBI Debt 23500 1079.07 0 0.00 RELIANCE FTS - AP 4

119

ICICI BANK Debt 2510 2794.66 0 0.00 RELIANCE MIP

ALLAHABAD BANK Certificate Of Deposit 2350 2268.04 0 0.00

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 4350 4196.15 1500 1445.87

INDUSIND BANK Certificate Of Deposit 400 395.40 0 0.00

STATE BANK OF INDORE

Certificate Of Deposit 5000 4714.81 0 0.00

UCO BANK Certificate Of Deposit 1400 1272.13 0 0.00

BANK OF BARODA Debt 1000 1023.58 0 0.00 HDFC LTD Debt 5300 19006.96 0 0.00 ICICI BANK Debt 7500 9473.12 0 0.00 IDBI Debt 10665 14848.95 0 0.00 JET AIRWAYS Debt 1948 2074.11 2095 1895.42 RELIANCE INDUSTIES LTD Debt 1000 1026.77 0 0.00 UTI BANK Debt 2500 2500.00 2500 2500.00 HERO HONDA Equity 165000 731.79 0 0.00 ICICI BANK Equity 401604 1790.28 0 0.00 INDIAN PETROCHEMICAL CORPORATION LTD Equity 499300 612.58 0 0.00 INFOSYS TECHNOLOGIES LTD Equity 11800 627.70 0 0.00 MARUTI UDYOG LTD Equity 538300 2546.69 100000 656.65 RELIANCE ENERGY LTD Equity 141756 889.90 0 0.00 RELIANCE INDUSTIES LTD Equity 25111 194.28 0 0.00 WIPRO Equity 30000 524.81 0 0.00 ICICI BANK Fixed Deposit 0 7300.00 0 500.00 RELIANCE FTS - QP 7 ICICI BANK Debt 6500 6728.80 0 0.00 INDUS IND BANK Debt 5000 5440.45 0 0.00

120

INDUS IND BANK Fixed Deposit 0 2500.00 0 0.00 VIJAYA BANK Fixed Deposit 0 100.00 0 0.00 RELIANCE FLOATING RATE FUND -

ALLAHBAD BANK Certificate Of Deposit 2550 2514.97 0 0.00

ICICI BANK Certificate Of Deposit 3500 3592.59 0 0.00

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 9750 9275.38 0 0.00

UCO BANK Certificate Of Deposit 600 578.86 500 483.68

YES BANK Certificate Of Deposit 500 497.34 0 0.00

HDFC LTD Debt 21400 32752.66 1500 1501.61 ICICI BANK Debt 500 500.73 0 0.00 IDBI Debt 21780 26480.23 6000 5998.64 JM FINANCIALS LTD Debt 500 500.00 0 0.00 RAYMONDS LTD Debt 2650 2650.00 150 150.00 RELIANCE INDUSTRIES LTD Debt 4800 3056.98 0 0.00 STERLITE INDUSTRIES INDIA LTD Debt 640 3620.49 0 0.00 UTI BANK Debt 6500 6503.29 0 0.00 ALLAHBAD BANK Fixed Deposit 0 10853.48 0 0.00 IDBI Fixed Deposit 0 500.00 0 0.00 VIJAYA BANK Fixed Deposit 0 2500.00 0 0.00 RELIANCE MEDIA & ENT. FUND ADLABS FILMS LIMITED Equity 100000 299.20 100000 332.65 ICICI BANK Fixed Deposit 0 1700.00 0 0.00 RELIANCE LONG TERM GILT FUND ALLAHABAD BANK Certificate Of 1000 988.50 0 0.00

121

Deposit

ICICI BANK Certificate Of Deposit 2000 1994.15 0 0.00

IDBI Certificate Of Deposit 800 781.46 800 781.95

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 4650 4457.77 3000 2924.94

UCO BANK Certificate Of Deposit 100 96.51 0 0.00

HDFC BANK Debt 21100 21100.00 0 0.00 IDBI Fixed Deposit 0 3000.00 0 0.00 RELIANCE NRI EQUITY FUND CUMMINS INDIA LIMITED Equity 500000 720.25 0 0.00 ICICI BANK Equity 100000 579.69 0 0.00 INFOSYS TECHNOLOGIES LTD Equity 25000 624.38 25000 711.15 MARUTI UDYOG LTD Equity 350000 1675.94 100000 656.65 PUNJAB NATIONAL BANK Equity 200000 863.40 0 0.00 RAYMONDS LTD Equity 100000 337.09 0 0.00 RELIANCE INDUSTRIES LTD Equity 161000 873.82 0 0.00 UNION BANK OF INDIA Equity 750000 831.03 0 0.00 WIPRO LTD Equity 33883 218.41 0 0.00 ICICI BANK Fixed Deposit 0 400.00 0 0.00 RELIANCE NRI INCOME FUND IDBI Fixed Deposit 0 200.00 0 0.00 RELIANCE LIQUID FUND-TREASURY PLAN

ALLAHBAD BANK Certificate Of Deposit 88650 108822.27 2550 2463.33

122

HDFC BANK Certificate Of Deposit 8450 7990.37 7450 7159.31

ICICI BANK Certificate Of Deposit

5450074100 138008.05 0 0.00

IDBI Certificate Of Deposit 16300 15574.80 6500 6343.82

INDUS IND BANK Certificate Of Deposit 9900 9573.90 2500 2462.48

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 10000 9569.28 6200 6040.69

PUNJAB NATIONAL BANK

Certificate Of Deposit 5000 4720.46 2500 2398.78

STATE BANK OF INDORE

Certificate Of Deposit 6000 5659.70 0 0.00

UCO BANK Certificate Of Deposit 64700 66869.80 14200 13875.25

UTI BANK Certificate Of Deposit 56100 54828.21 4500 4333.42

YES BANK Certificate Of Deposit 6000 5833.05 500 478.56

CHAMBAL FERTILISERS Debt 5000 5000.00 0 0.00 ELECTROSTEEL CASTNGS LIMITED Debt 2025 4499.50 0 0.00 HDFC LTD Debt 70000 68688.11 4500 4442.92 HDFC BANK Debt 55750 43669.06 0 0.00 ICICI BANK Debt 2905002000 33810.46 1000 992.00 IDBI Debt 3894469448 68981.64 500 499.92 IDFC Debt 1300 1283.47 0 0.00 RAYMONDS LTD Debt 701604650 14150.00 400 400.00 STERLITE INDUSTRIES INDIA LTD Debt 5831 14835.22 0 0.00 ICICI BANK Fixed Deposit 0 18674.72 0 0.00 IDBI Fixed Deposit 0 84742.77 0 0.00 INDUSIND BANK Fixed Deposit 0 22500.00 0 3500.00 JAMMU AND KASHMIR BANK LTD Fixed Deposit 0 4600.00 0 0.00 PUNJAB & NATIONAL BANK Fixed Deposit 0 14300.00 0 0.00 RELIANCE LIQUID FUND CASH PLAN ICICI BANK Debt 4000 4000.00 0 0.00

123

IL&FS Debt 3000 3000.00 3000 3000.00 RAYMONDS LTD Debt 497821950 24750.00 3500 3500.00 STERLITE INDUSTRIES INDIA LTD Debt 10940 14900.00 0 0.00 IDBI Fixed Deposit 0 1009.05 0 0.00 RELIANCE LIQUID FUND SUPER CASH PLAN

ICICI BANK Certificate Of Deposit 9600 11250.52 0 0.00

ICICI BANK Debt 750005000 12501.86 0 0.00 IDBI Debt 3802199984 28129.07 0 0.00 RAYMONDS LTD Debt 200000000 2000.00 0 0.00 ICICI BANK Fixed Deposit 0 8587.59 0 0.00 IDBI Fixed Deposit 0 12527.74 0 0.00 RELIANCE INDEX FUND - SENSEX PLAN BHARATI TELE VENTURES LTD. Equity 4512 10.82 230 0.23 DR REDDYS LABORATORIES LTD. Equity 639 4.82 91 0.94 GRASIM INDUSTRIES LTD Equity 816 10.90 115 1.67 HDFC BANK Equity 2440 14.19 386 2.83 HDFC LTD Equity 2232 18.68 347 4.09 HERO HONDA Equity 1112 6.27 167 1.40 HINDALCO INDUSTRIES LIMITED Equity 1425 10.59 1288 1.69 ICICI BANK Equity 8244 31.87 1255 7.33 INFOSYS TECHNOLOGIES LTD Equity 2268 48.18 363 10.33 MARUTI UDYOG LTD Equity 966 4.57 140 0.92 RELIANCE ENERGY LTD Equity 1044 6.03 167 0.99 RELIANCE INDUSTRIES LTD Equity 8567 48.58 1284 11.36 WIPRO LTD Equity 1803 10.98 457 2.10

124

RELIANCE INDEX FUND NIFTY PLAN BHARATI TELE VENTURES LTD. Equity 21289 46.29 1383 4.62 DR REDDYS LABORATORIES LTD. Equity 882 6.52 53 0.55 GRASIM INDUSTRIES LTD Equity 1056 14.15 69 1.00 HCL TECHNOLOGIES LTD Equity 3667 12.72 147 0.87 HDFC LTD Equity 2862 23.32 184 2.17 HDFC BANK Equity 3316 18.97 189 1.38 HERO HONDA Equity 2304 12.41 154 1.29 HINDALCO INDUSTRIES LIMITED Equity 1210 14.67 846 1.09 ICICI BANK Equity 8500 31.31 544 3.18 INDIAN PETROCHEMICAL CORPORATION LTD Equity 2865 5.26 189 0.49 INFOSYS TECHNOLOGIES LTD Equity 3110 64.00 191 5.43 JET AIRWAYS INDIA LTD Equity 13 0.15 8 0.09 MARUTI UDYOG LTD Equity 3336 15.45 219 1.44 PUNJAB NATIONAL BANK Equity 3085 12.58 140 0.65 RELIANCE ENERGY LTD Equity 2104 12.17 130 0.77 RELIANCE INDUSTRIES LTD Equity 16109 151.44 1077 9.53 SUN PHARMACEUTICALS LTD Equity 2141 10.69 145 0.98 TATA CHEMICALS Equity 2482 4.08 165 0.40 WIPRO LTD Equity 8690 56.33 1045 4.81 RELIANCE GROWTH FUND

ALLAHBAD BANK Certificate Of Deposit 1000 986.02 1000 989.56

125

ICICI BANK Certificate Of Deposit 150000000 1458.08 0 0.00

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 1000 987.91 1000 991.49

IDBI Debt 3000000 3084.96 0 0.00 JM FINANCIALS LTD Debt 3400 3400.00 0 0.00 STERLITE INDUSTRIES LIMITED Debt 2000 2000.00 0 0.00 GEOMETRIC SOFTWARE SOLUTIONS CO Equity 117278 1960.40 933727 1028.50 GRASIM INDUSTRIES LTD Equity 132604 1558.85 0 0.00 HERO HONDA Equity 178929 199.23 0 0.00 HINDUSTAN ZINC Equity 1462015 1465.55 974284 3069.48 ICICI BANK Equity 1468421 7265.52 800000 4672.00 IDBI Equity 2550000 2747.88 3525540 3647.17 INDIAN PETROCHEMICAL CORPORATION LTD Equity 1700000 3492.88 1400000 3645.60 INDUS IND BANK Equity 4371266 2408.52 0 0.00 MARUTI UDYOG LTD Equity 804267 3499.99 0 0.00 PUNJAB NATIONAL BANK Equity 975171 3577.10 0 0.00 RELIANCE ENERGY LTD Equity 570850 3655.28 0 0.00 RELIANCE INDUSTRIES LTD Equity 603740 3208.96 0 0.00 TATA CHEMICALS Equity 1788881 2826.00 1600000 3908.80 ALLAHABAD BANK Fixed Deposit 0 5500.00 0 0.00 ICICI BANK Fixed Deposit 0 11000.00 0 500.00 PUNJAB NATIONAL BANK Fixed Deposit 0 900.00 0 0.00 STATE BANK OF INDORE Fixed Deposit 0 2000.00 0 0.00 RELIANCE VISION FUND

ICICI BANK Certificate Of Deposit 450000000 4415.90 0 0.00

UCO BANK Certificate Of Deposit 4500 4404.84 4500 4420.77

ICICI BANK Debt 500000 561.00 0 0.00

126

GRASIM INDUSTRIES LTD Equity 246341 2746.70 0 0.00 HDFC LTD Equity 100000 1173.98 100000 1180.75 HERO HONDA Equity 203600 901.90 0 0.00 ICICI BANK Equity 2521800 12571.87 1100000 6424.00 INDIAN PETROCHEMICAL CORPORATION LTD Equity 1276200 3129.82 900,000.00 2343.60 INFOSYS TECHNOLOGIES LTD Equity 310000 8439.17 210,000.00 5973.66 JET AIRWAYS INDIA LTD Equity 386330 4810.06 223910 2525.82 MARUTI UDYOG LTD Equity 2682810 14806.03 1407810 9251.54 PATNI COMPUTERS Equity 616458 1432.24 0 0.00 PUNJAB NATIONAL BANK Equity 1443546 5404.05 400000 1864.20 RELIANCE ENERGY LTD Equity 0 0.01 0 0.00 RELIANCE INDUSTRIES LTD Equity 1025110 5642.46 800000 7081.20 STERLITE INDUSTRIES INDIA LTD Equity 495394 2682.79 0 0.00 WIPRO LTD Equity 58000 395.38 0 0.00 ALLAHABAD BANK Fixed Deposit 0 100.00 0 0.00 ICICI BANK Fixed Deposit 0 5987.55 0 0.00 STATE BANK OF INDORE Fixed Deposit 0 3500.00 0 2500.00 RELIANCE EQUITY OPPORTUNITY FUND CHAMBAL FERTILISERS Debt 3500 3500.00 0 0.00 ICICI BANK Debt 21500 21500.00 0 0.00 RAYMONDS LTD Debt 5500 5500.00 0 0.00 STERLITE INDUSTRIES INDIA LTD Debt 13000 13000.00 0 0.00 DR REDDYS LABORATORIES LTD. Equity 99200 753.01 0 0.00 GRASIM INDUSTRIES LTD Equity 246341 2965.95 0 0.00

127

CUMMINS INDIA LIMITED Equity 2252020 2550.90 2187541 3657.57 HCL TECHNOLOGIES LTD Equity 1747033 6497.14 1200000 7129.20 ICICI BANK Equity 603820 2879.38 0 0.00 IDBI Equity 1500000 1732.29 0 0.00 INDIAN PETROCHEMICAL CORPORATION LTD Equity 1250000 2540.55 0 0.00 MARUTI UDYOG LTD Equity 1300000 5463.14 0 0.00 PUNJAB NATIONAL BANK Equity 2420000 9556.61 500000 2330.25 RELIANCE ENERGY LTD Equity 493000 2619.51 0 0.00 RELIANCE INDUSTRIES LTD Equity 2810000 16561.21 1800000 15932.70 STERLITE INDUSTRIES INDIA LTD Equity 550000 3767.85 460000 5981.15 SYNDICATE BANK Equity 955300 477.65 0 0.00 ULTRATECH CEMENT Equity 347380 1523.61 0 0.00 YES BANK LTD Equity 900000 405.00 0 0.00 HDFC BANK Fixed Deposit 0 6000.00 0 2000.00 PUNJAB NATIONAL BANK Fixed Deposit 0 15000.00 0 0.00 UCO BANK Fixed Deposit 0 7500.00 0 0.00 RELIANCE FMP - MP 1

ALLAHABAD BANK Certificate Of Deposit 3500 3472.84 0 0.00

ICICI BANK Certificate Of Deposit 5500 5443.89 0 0.00

INDUSIND BANK Certificate Of Deposit 3000 2960.82 0 0.00

THE JAMMU & KASHMIR BANK LTD

Certificate Of Deposit 10000 9940.24 0 0.00

IDBI Fixed Deposit 0 5000.00 0 0.00 RELIANCE FTS - QP 9 ALLAHABAD BANK Certificate Of 4000 3962.67 0 0.00

128

Deposit

ICICI BANK Certificate Of Deposit 4000 3881.85 0 0.00

INDUSIND BANK Certificate Of Deposit 2000 1945.29 0 0.00

THE JAMMU & KASHMIR BANK LTD

Certificate Of Deposit 3000 2939.11 0 0.00

UCO BANK Certificate Of Deposit 1500 1489.42 0 0.00

IDBI Fixed Deposit 0 4000.00 0 0.00 THE JAMMU & KASHMIR BANK LTD Fixed Deposit 0 5000.00 0 0.00 RELIANCE LIQUIDITY FUND

ALLAHBAD BANK Certificate Of Deposit 115350 49662.72 4700 4534.76

HDFC BANK Certificate Of Deposit 8200 7752.24 3200 3073.46

ICICI BANK Certificate Of Deposit 46500 46125.93 0 0.00

IDBI Certificate Of Deposit 11100 10634.62 1600 1525.05

INDUS IND BANK Certificate Of Deposit 7000 6853.25 0 0.00

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 3400 3288.21 1350 1316.36

PUNJAB NATIONAL BANK

Certificate Of Deposit 10500 9945.27 10500 10074.87

STATE BANK OF INDORE

Certificate Of Deposit 11000 10412.04 11000 10559.25

UCO BANK Certificate Of Deposit 18900 18498.70 10400 10193.04

UTI BANK Certificate Of Deposit 42400 41456.42 9000 8651.66

YES BANK LTD Certificate Of Deposit 10500 10152.58 2800 2714.22

DSP ML CAPITAL LTD Debt 8000 7954.01 0 0.00 ELECTROSTEEL CASTNGS LIMITED Debt 1500 1500.00 0 0.00 HDFC BANK Debt 40500 39971.25 0 0.00 ICICI BANK Debt 8500 8573.17 0 0.00 IDBI Debt 7500 7493.71 0 0.00 IDFC Debt 10671 10467.70 0 0.00

129

IL & FS Debt 17000 16854.81 0 0.00 JM FINANCIALS LTD Debt 1000 1000.00 0 0.00 RAYMONDS LTD Debt 12300 12300.00 0 0.00 RELIANCE INDUSTIES LTD Debt 2450 2474.44 1450 1466.05 STERLITE INDUSTRIES INDIA LTD Debt 6500 6500.00 0 0.00 UTI BANK Debt 2500 2500.00 0 0.00 BANK OF INDIA Fixed Deposit 0 10000.00 0 0.00 IDBI Fixed Deposit 0 13600.00 0 0.00 INDUS IND BANK Fixed Deposit 0 8100.00 0 1500.00 JAMMU AND KASHMIR BANK LTD Fixed Deposit 0 10000.00 0 10000.00 UNION BANK OF INDIA Fixed Deposit 0 5000.00 0 0.00 UTI BANK Fixed Deposit 0 10000.00 0 0.00 YES BANK LTD Fixed Deposit 0 800.00 0 0.00 RELIANCE FTS - AP1 ( SERIES I)

IDBI Certificate Of Deposit 600 564.94 500 476.58

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 600 580.18 0 0.00

UTI BANK Certificate Of Deposit 500 473.33 0 0.00

IDBI Debt 2500 2744.73 2500 2598.31 RAYMONDS LTD Debt 1400 1400.00 0 0.00 IDBI Fixed Deposit 0 600.00 0 0.00 RELIANCE FTS - AP1 ( SERIES II)

HDFC BANK Certificate Of Deposit 2500 2367.54 2500 2398.68

IDBI Certificate Of Deposit 100 94.16 100 95.32

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 350 338.51 350 341.43

ICICI BANK Debt 50 51.20 0 0.00 IDBI Fixed Deposit 0 100.00 0 0.00 RELIANCE FTS - AP2 ( SERIES II) UCO BANK Certificate Of 500 473.60 0 0.00

130

Deposit ICICI BANK Debt 50 51.20 50 50.30 IDBI Fixed Deposit 0 500.00 0 0.00 INDUS IND BANK Fixed Deposit 0 1000.00 0 0.00 RELIANCE FTS - AP3 ( SERIES II) JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 450 435.22 0 0.00

IDBI Debt 800 756.61 0 0.00 IDBI Fixed Deposit 0 300.00 0 0.00 RELIANCE FMF - MP3 ( SERIES II)

ALLAHBAD BANK Certificate Of Deposit 17500 17339.95 0 0.00

ICICI BANK Certificate Of Deposit 13500 13417.91 0 0.00

INDUSIND BANK Certificate Of Deposit 3000 2988.80 0 0.00

HDFC BANK Debt 9000 8953.57 0 0.00 IDBI Debt 5000 4951.05 0 0.00 INDUSIND BANK Fixed Deposit 0 5000.00 0 0.00 RELIANCE FMF SR II QP 1

ICICI BANK Certificate Of Deposit 6700 6571.99 0 0.00

INDUS IND BANK Certificate Of Deposit 4700 4622.98 0 0.00

UCO BANK Certificate Of Deposit 4000 3904.42 0 0.00

UTI BANK Certificate Of Deposit 7800 7675.72 0 0.00

IDBI Debt 6500 6524.88 0 0.00 IDBI Fixed Deposit 0 6500.00 0 0.00 INDUS IND BANK Fixed Deposit 0 10000.00 0 0.00 RELIANCE FMF SR II QP 2

ICICI BANK Certificate Of Deposit 900 911.91 0 0.00

IDBI Certificate Of Deposit 6500 6314.11 6500 6386.17

131

INDUS IND BANK Certificate Of Deposit 3300 3234.01 1100 1092.29

UCO BANK Certificate Of Deposit 5500 5363.84 1500 1462.45

UTI BANK Certificate Of Deposit 2500 2429.76 2500 2462.09

YES BANK Certificate Of Deposit 5500 5385.21 5000 4915.22

HDFC LTD Debt 10000 9927.29 5000 4976.29 ICICI BANK Debt 1900 1911.91 900 905.48 JM FINANCIALS LTD Debt 1600 1600.00 0 0.00 RAYMONDS LTD Debt 1500 1500.00 0 0.00 ICICI BANK Fixed Deposit 0 2600.00 0 0.00 YES BANK Fixed Deposit 0 3100.00 0 3100.00 RELIANCE FMF SR II MP IV

ALLAHABAD BANK Certificate Of Deposit 13000 12899.58 0 0.00

ICICI BANK Certificate Of Deposit 4500 4464.32 0 0.00

ELECTROSTEEL CASTNGS LIMITED Debt 2500 2500.00 0 0.00 HDFC BANK Debt 5000 4959.62 0 0.00 IDBI Debt 6500 6468.17 0 0.00 RELIANCE FMF SR II MP V

ALLAHABAD BANK Certificate Of Deposit 3500 3485.90 0 0.00

ICICI BANK Certificate Of Deposit 2500 2473.81 0 0.00

INDUS IND BANK Certificate Of Deposit 1600 1592.20 0 0.00

ELECTROSTEEL CASTNGS LIMITED Debt 2500 2500.00 0 0.00 HDFC BANK Debt 5000 4979.80 0 0.00 IDBI Debt 5000 4999.17 0 0.00 INDUS IND BANK Fixed Deposit 0 2800.00 0 0.00 RELIANCE FMF SR II MP VI

ALLAHABAD BANK Certificate Of Deposit 0 5000.00 0 0.00

ICICI BANK Certificate Of Deposit 5000 4982.71 0 0.00

INDUS IND BANK Certificate Of Deposit 1600 1594.47 0 0.00

132

UTI BANK Certificate Of Deposit 3000 2962.16 0 0.00

ELECTROSTEEL CASTNGS LIMITED Debt 2500 2500.00 0 0.00 HDFC BANK Debt 3500 3485.55 0 0.00 RAYMONDS LTD Debt 500 500.00 0 0.00 STERLITE INDUSTRIES INDIA LTD Debt 2500 2500.00 0 0.00 IDBI Fixed Deposit 0 2500.00 0 0.00 RELIANCE FMF SR II MP VII JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 1100 1087.18 0 0.00

UTI BANK Certificate Of Deposit 6300 6232.37 0 0.00

HDFC BANK Debt 3500 3460.31 0 0.00 ICICI BANK Debt 200 200.89 0 0.00 RAYMONDS LTD Debt 500 500.00 0 0.00 STERLITE INDUSTRIES INDIA LTD Debt 2000 2000.00 0 0.00 IDBI Fixed Deposit 0 6500.00 0 0.00 RELIANCE FMF SR II MP VIII

ALLAHABAD BANK Certificate Of Deposit 7250 7159.36 0 0.00

ICICI BANK Certificate Of Deposit 5500 5424.85 0 0.00

INDUS IND BANK Certificate Of Deposit 4300 4250.36 0 0.00

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 2600 2568.73 0 0.00

UCO BANK Certificate Of Deposit 1000 987.23 0 0.00

YES BANK Certificate Of Deposit 2500 2480.72 0 0.00

HDFC LTD Debt 6000 5971.51 0 0.00 ICICI BANK Debt 9000 9000.00 0 0.00 IDFC Debt 2500 2462.78 0 0.00 IL & FS Debt 9500 9500.00 0 0.00 JM FINANCIALS LTD Debt 8500 8500.00 0 0.00 RAYMONDS LTD Debt 1400 1400.00 0 0.00 STERLITE Debt 1000 1000.00 0 0.00

133

INDUSTRIES INDIA LTD IDBI Fixed Deposit 0 2500.00 0 0.00 RELIANCE FMF SR II MP IX

ALLAHABAD BANK Certificate Of Deposit 14250 14192.05 6250 6203.42

ICICI BANK Certificate Of Deposit 25000 24240.66 500 496.32

INDUSIND BANK Certificate Of Deposit 4300 4260.57 4300 4268.78

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 3100 3076.41 1600 1586.67

UCO BANK Certificate Of Deposit 1000 988.28 1000 990.08

UTI BANK Certificate Of Deposit 9000 8621.58 0 0.00

YES BANK Certificate Of Deposit 2000 1990.82 500 499.70

ELECTROSTEEL CASTNGS LIMITED Debt 2500 2499.50 0 0.00 HDFC LTD Debt 37000 36558.03 0 0.00 ICICI BANK Debt 3500 3441.52 0 0.00 IDBI Debt 17000 16880.97 0 0.00 IDFC Debt 18796 18146.06 0 0.00 INDO GULF FERTILISERS Debt 1500 1565.51 0 0.00 RAYMONDS LTD Debt 150 150.00 150 150.00 RELIANCE INDUSTRIES LTD Debt 2000 2038.53 0 0.00 STERLITE INDUSTRIES INDIA LTD Debt 4600 4600.00 0 0.00 TATA CHEMICALS Debt 500 505.09 0 0.00 INDUSIND BANK Fixed Deposit 0 7500.00 0 0.00 JAMMU AND KASHMIR BANK LTD Fixed Deposit 0 5000.00 0 0.00 UCO BANK Fixed Deposit 0 20000.00 0 0.00 VIJAYA BANK Fixed Deposit 0 2100.00 0 0.00 YES BANK Fixed Deposit 0 100.00 0 100.00 RELIANCE FIXED TENOR PLAN A ALLAHABAD BANK Certificate Of 1000 974.83 0 0.00

134

Deposit

HDFC BANK Certificate Of Deposit 2500 2399.99 0 0.00

IDBI Certificate Of Deposit 2500 2432.60 0 0.00

JAMMU AND KASHMIR BANK LTD

Certificate Of Deposit 1000 971.44 0 0.00

UCO BANK Certificate Of Deposit 4500 4412.97 0 0.00

HDFC LTD Debt 2500 2485.82 0 0.00 RELIANCE INDUSTRIES LTD Debt 1450 1466.73 0 0.00 UTI BANK Debt 2500 2500.00 0 0.00 RELIANCE TAX SAVER FUND

ALLAHBAD BANK Certificate Of Deposit 2500 2465.05 2500 2473.89

ICICI BANK Certificate Of Deposit 6500 6453.65 0 0.00

YES BANK LTD Certificate Of Deposit 1000 987.47 1000 990.94

HDFC LTD Debt 4000 3980.09 0 0.00 RAYMONDS LTD Debt 4500 4500.00 0 0.00 STERLITE INDUSTRIES INDIA LTD Debt 5300 5300.00 0 0.00 CUMMINS INDIA LIMITED Equity 1200729 1776.50 1000000 1672.00 ICICI BANK Equity 503397 2696.86 200000 1168.00 INFOSYS TECHNOLOGIES LTD Equity 102227 2508.71 100000 2844.60 INDIAN PETROCHEMICAL CORPORATION LTD Equity 1000000 2250.91 1000000 2604.00 RELIANCE INDUSTRIES LTD Equity 800111 6073.41 200000 1770.30 PUNJAB NATIONAL BANK Equity 700000 3021.27 0 0.00 YES BANK LTD Equity 2743859 1786.74 1000000 990.94 HDFC BANK Fixed Deposit 0 500.00 0 500.00 ICICI BANK Fixed Deposit 0 2500.00 0 0.00

135

7. Investments by associates in the Schemes The value of unit holding by associates and group companies in the schemes of Reliance Mutual Fund as on January 13, 2006 is as follows.

Reliance Income Fund 162.52 Reliance Liquid Fund 36,362.22 Reliance Short Term Fund 100.17 Reliance Fixed Term Scheme Nil Reliance Medium Term Fund Nil Reliance Growth Fund 283.47 Reliance Gilt Securities Fund Nil Reliance Monthly Income Plan 1,024.94 Reliance Vision Fund 1,101.25 Reliance Banking Fund 2,451.09 Reliance Diversified Power Sector Fund Nil Reliance Pharma Fund 2,821.00 Reliance Floating Rate Fund Nil Reliance Media & Entertainment Fund Nil Reliance NRI Income Fund Nil Reliance NRI Equity Fund Nil Reliance Equity Opportunities Fund 221.95 Reliance Index Fund - Nifty Plan 25.68 Reliance Fixed Maturity Fund - Series I Nil

Reliance Fixed Maturity Fund -Series II 461.13 Reliance Tax Saver (ELSS) Fund 247.94 Reliance Liquidity Fund 51,968.68 Reliance Regular Savings Fund Nil Reliance Fixed Tenor Fund Nil

F. PROCEDURE AND MANNER OF WINDING UP: Where a Scheme is to be wound up pursuant to the above Regulations, the Trustee shall give notice of the circumstances leading to the winding up of the Scheme:- To SEBI; and in two daily newspapers having circulation all over India and also in a vernacular newspaper circulating at the place where the Mutual Fund is established. The Trustee shall call a meeting of the unit holders to consider and pass necessary resolutions by simple majority of the unit holders present and voting at the meeting for authorising the Trustee or any other person to take steps for winding up the Scheme. i) The Trustee or the person authorised as above, shall dispose of the assets of the Scheme concerned in the best interest of the unit holders of that Scheme. The proceeds of the Sale made in pursuance of the above, shall, in the first instance be utilised towards discharge of such liabilities as are properly due under the Scheme and after making appropriate provision for meeting the expenses connected with such winding up, the balance shall be paid to the unit holders in proportion to their respective interest in the assets of the Scheme as on the date when the decision for the winding up was taken. ii) On the completion of the winding up, the Trustee shall forward to the Board and the unit holders, a report on the winding up containing particulars such as circumstances leading to the winding up, the steps taken for disposal of assets of the Fund before winding up, expenses of the Fund for winding up, net assets available for distribution to the unit holders and a certificate from the Auditors of the Scheme.

136

iii) Notwithstanding anything contained herein, the application of the provisions of the Mutual Fund Regulations in respect of disclosures of half-yearly reports and annual reports shall continue to apply. After the receipt of the report referred to above under 'Procedure and Manner of Winding Up', if SEBI is satisfied that all measures for winding up of the Scheme have been completed, the Scheme shall cease to exist.

XII. PENALTIES & PENDING LITIGATION

Penalties, pending litigation's or proceedings, findings of inspection or investigation for which action may have been taken or is in process of being taken by any regulatory authority. 1.Cases of penalties awarded by SEBI under the SEBI Act or any of its regulations against the Sponsor of the Mutual Fund or any company associated with the Sponsor in any capacity including the AMC, Trustee Company/ Board of Trustees, or any of the directors or key personnel (specifically the Fund Managers) of the AMC and Trustee Company. Cases of penalties awarded by any financial regulatory body, including stock exchanges, for defaults in respect of shareholders, debenture holders and depositors and penalties awarded for any economic offence and violation of any securities laws, against the Sponsors and its associates. Reliance Mutual Fund: SEBI had issued a show cause notice to Reliance Mutual Fund on February 12, 2003 regarding violation of investment restrictions for exceeding the investment limit in unrated debt securities (9.80% UTI Bank Bonds, 2007) beyond the permissible limit of 10% specified under the Regulations in one of the Schemes namely Reliance Medium Term Fund. (a) Reliance Mutual Fund had submitted reply on February 26, 2003 in this regard and also attended the adjudication proceedings held by SEBI on March 11, 2003 and a total fine of Rs.6 lacs was imposed by SEBI on both Reliance Capital Asset Management Limited and Reliance Mutual Fund. The said fine was borne by the AMC. (b) The Clearing Corporation of (I) Ltd. had levied penal charges to Reliance Mutual Fund on account of margin default on 14.03.03 of Rs. 35,996, on 17.03.03 of Rs. 26,030, on 6.11.03 of Rs. 5,000 the said charges were borne by the AMC. For details of other penalties besides the above please refer below. 2.Pending material litigation proceedings incidental to the business of the Mutual Fund to which the Sponsor of the Mutual Fund or any company associated with the Sponsor in any capacity including the AMC, Board of Trustees/ Trustee Company or any of the directors or key personnel is a party. NIL 3.Pending criminal cases against the Sponsor or any company associated with the Sponsor in any capacity including the AMC, Board of Trustees/ Trustee Company or any of the directors or key personnel. Reliance Capital Limited: There are 42 cases pertaining to equity shares of Reliance Capital Limited pending in various Civil/ Criminal courts and other forums. The total amount involved in the above mentioned cases is approximately Rs.40,20,140/-. Similarly, 2 cases are pending in the High Court of Mumbai amounting to Rs.5,82,41,649/-, in relation to business operations of the company. H. JURISDICTION: Any dispute arising out of this issue shall be subject to the exclusive jurisdiction of the Courts in India.

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Statements in this Offer Document are, except where otherwise stated, based on the law, practice currently in force in India, and are subject to changes therein. I. OMNIBUS CLAUSE: Subject to the Regulation permitting: Besides the AMC, the Trustee or Sponsor may also absorb expenditures in addition to the limits laid down under the Regulations. Further, any amendment/clarification and guidelines in the form of notes or circulars issued from time to time by SEBI for the operation and management of mutual fund shall be applicable. AMC confirms that there are no deviations from the regulation and no subjective interpretations have been applied to the provisions of the Regulations J. AMENDMENTS TO THE OFFER DOCUMENT: Necessary amendments shall be made to the Offer Document of the Scheme by RCAM, subject (if and as required) to approval of SEBI / Unitholder. Further, RCAM reserves the right to issue operational procedures for implementing marketing / service plans from time to time. K. DOCUMENTS AVAILABLE FOR INSPECTION: Copies of the following documents will be available for inspection by the unitholders between 11.00 a.m. and 1.00 p.m. on any working day at the head office of the Mutual Fund: - 1. Memorandum and Articles of Association of RCAM and RCTC. 2. The Custodial Agreement between RMF and Deutsche Bank 3. Trust Deed and subsequent amendments thereto 4. Mutual Fund Registration Certificate from SEBI 5. The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. 6. Registrar's consent letter 7. Investment Management Agreement. 8. Auditor's consent letter 9. Indian Trusts Act, 1882. 10. Offer Document of this Scheme and subsequent amendments thereto Notwithstanding anything contained in the Offer Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines thereunder, shall be applicable.

For and behalf of the Board of Directors of RELIANCE CAPITAL ASSET MANAGEMENT LIMITED

[Asset Management Company for Reliance Mutual Fund] sd/- Place : Mumbai Amitabh Chaturvedi Date : February 10, 2006 Chief Executive Officer