Annual Report - 2010 - 11
The Trustee Report Covers Following Schemes.
1) IDFC Fixed Maturity Plan - 9th Plan (IDFC-FMP-9th Plan)
2) IDFC Fixed Maturity Plan - Nineteen Months Series 1 (IDFC-FMP-NMS1)
3) IDFC Fixed Maturity Plan - Thirteen Months Series 1 (IDFC-FMP-TMS1)
4) IDFC Fixed Maturity Plan - Fifteen Months Series 3 (IDFC-FMP-FMS3)
5) IDFC Fixed Maturity Plan - Half Yearly Series 9 (IDFC-FMP-HYS9)
6) IDFC Fixed Maturity Plan - Bi-Monthly Series 1 (IDFC-FMP-BMS1)
7) IDFC Fixed Maturity Plan - Bi-Monthly Series 2 (IDFC-FMP-BMS2)
TRUSTEE REPORT
Report of the Board of Directors of the IDFC AMC Trustee Company Limited to the Unit-holders of
IDFC Mutual Fund
Dear Unit-holder,
The Directors of IDFC AMC Trustee Company Limited hereby present the Eleventh Annual Report
of IDFC Mutual Fund for the year ended March 31, 2011.
IDFC MUTUAL FUND
IDFC Mutual Fund (the Mutual Fund or the Fund) previously known as Standard Chartered
Mutual Fund (SCMF) (which was earlier known as ANZ Grindlays Mutual Fund) had been
constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of
1882) vide a Trust Deed dated December 29, 1999. The office of the Sub-Registrar of
Assurances at Mumbai had registered the Trust Deed establishing the Fund under the
Registration Act, 1908. The Fund was registered with SEBI vide registration number
MF/042/00/3 dated March 13, 2000. A deed of amendment to the Trust Deed has been executed
and registered to recognize the change in sponsor of the Mutual Fund. The deed of variation to the
Trust Deed, dated May 30, 2008, made IDFC the sponsor of the Mutual Fund and IDFC AMC
Trustee Company Limited, the Trustee. The Trustee has entered into an Investment Management
Agreement dated April 10, 2010 with IDFC Asset Management Co. Ltd. (the AMC) to function as
the Investment Manager for all the Schemes of IDFC Mutual Fund, registered with SEBI on
March 13, 2000.
IDFC acquired 100% equity shares of the Asset Management Company and the Trustee Company
from Standard Chartered Bank, the erstwhile sponsor of the Mutual Fund, on May 30, 2008 and
further contributed an amount of Rs. 10, 000/- to the corpus of the Fund (the total contribution of the
sponsors till date including this contribution, stands at Rs. 30,000). The Trust has been formed for
the purpose of pooling of capital from the public for collective investment in securities / any other
property for the purpose of providing facilities for participation by persons as beneficiaries in such
properties/ investments and in the profits / income arising there from.
The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of
the unitholders. The trustees been discharging its duties and carrying out the responsibilities as
provided in the regulations and the trust deed. The trust seeks to ensure that the fund and the
schemes floated there under are managed by the AMC in accordance with the trust deed and the
regulations, directions and guidelines issued by the SEBI, the stock exchanges, the association
of the Mutual Funds in India.
The Schemes launched (and existing) by the Mutual Fund comprised of Twenty Three Open
Ended schemes and Thirty Nine Close-Ended schemes as on March 31, 2011.
The following are the Open-Ended schemes (Debt & Equity) as on March 31, 2011:
1) IDFC Super Saver Income Fund (IDFC-SSIF) with Investment Plan, Short-Term Plan and
Medium Term Plan
2) IDFC Cash Fund (IDFC-CF)
3) IDFC Government Securities Fund (IDFC-GSF) with Investment Plan, Short Term Plan and
Provident Fund Plan
4) IDFC Dynamic Bond Fund (IDFC-DBF),
5) IDFC Money Manager Fund (IDFC-MMF) with Investment Plan and Treasury Plan
6) IDFC All Seasons Bond Fund (IDFC-ASBF)
7) IDFC Ultra Short Term Fund (IDFC-USTF)
8) IDFC Liquid Fund (IDFC-LF)
9) IDFC Classic Equity Fund (IDFC-CEF)
10) IDFC Premier Equity Fund (IDFC-PEF)
11) IDFC Imperial Equity Fund (IDFC-IEF)
12) IDFC Arbitrage Fund (IDFC-AF)
13) IDFC Arbitrage Plus Fund (IDFC-APF)
14) IDFC Strategic Sector (50-50) Equity Fund (IDFC SS(50-50)EF)
15) IDFC Tax Advantage (ELSS) Fund (IDFC TA (ELSS) F)
16) IDFC Tax Saver (ELSS) Fund (IDFC TS (ELSS) F)
17) IDFC India GDP Growth Fund (IDFC-GDP)
18) IDFC Asset Allocation Fund of Fund with Aggressive Plan (IDFC-AAF-AP), Conservative
Plan(IDFC-AAF-CP) and Moderate Plan (IDFC-AAF-MP)
19) IDFC Monthly Income Plan Fund of Fund (IDFC-MIP)
20) IDFC Equity Fund (IDFC-EF)
21) IDFC Small & Midcap (SME) Equity Fund (IDFC-SMEF)
22) IDFC Nifty Fund (IDFC NF)
23) IDFC Infrastructure Fund (IDFC IF)
The following are the Close Ended schemes (Debt & Equity) (as on March 31, 2011):
1) IDFC Fixed Maturity Plan Monthly Series 25
2) IDFC Fixed Maturity Plan Monthly Series 27
3) IDFC Fixed Maturity Plan Monthly Series 28
4) IDFC Fixed Maturity Plan Monthly Series 29
5) IDFC Fixed Maturity Plan Monthly Series 30
6) IDFC-Fixed Maturity Plan - Bi-Monthly Series 1
7) IDFC-Fixed Maturity Plan - Bi-Monthly Series 2
8) IDFC Fixed Maturity Plan - Quarterly Series 58
9) IDFC Fixed Maturity Plan - Quarterly Series 59
10) IDFC Fixed Maturity Plan - Quarterly Series 60
11) IDFC Fixed Maturity Plan - Quarterly Series 61
12) IDFC Fixed Maturity Plan - Quarterly Series 62
13) IDFC Fixed Maturity Plan - Quarterly Series 63
14) IDFC Fixed Maturity Plan - Half Yearly Series 12
15) IDFC Fixed Maturity Plan - Half Yearly Series 13
16) IDFC- Fixed Maturity Plan 100 Days Series 1
17) IDFC- Fixed Maturity Plan 100 Days Series 2
18) IDFC- Fixed Maturity Plan 100 Days Series 3
19) IDFC Fixed Maturity Plan - Yearly Series 32
20) IDFC Fixed Maturity Plan - Yearly Series 33
21) IDFC Fixed Maturity Plan - Yearly Series 34
22) IDFC Fixed Maturity Plan - Yearly Series 35
23) IDFC Fixed Maturity Plan - Yearly Series 36
24) IDFC Fixed Maturity Plan - Yearly Series 37
25) IDFC Fixed Maturity Plan - Yearly Series 38
26) IDFC Fixed Maturity Plan - Yearly Series 39
27) IDFC Fixed Maturity Plan - Yearly Series 40
28) IDFC Fixed Maturity Plan - Yearly Series 41
29) IDFC Fixed Maturity Plan - Yearly Series 42
30) IDFC- Fixed Maturity Plan -Sixteen Month Series 3
31) IDFC- Fixed Maturity Plan - Seventeen Month Series 3
32) IDFC Fixed Maturity Plan - Eighteen Months Series 7
33) IDFC Fixed Maturity Plan - 36 Months Series 2
34) IDFC Fixed Maturity Plan - 60 Months Series 2
35) IDFC Saving Scheme Series I
36) IDFC Saving Scheme Series II
37) IDFC Capital Protection Oriented Fund - Series II
38) IDFC Capital Protection Oriented Fund - Series III
39) IDFC Hybrid Portfolio Fund Series I
The total Funds under Management (FuM) under all its schemes as on March 31, 2011
aggregated to Rs. 20481.10 crores. 2010-2011 was the Eleventh year of operation of IDFCMF.
TRUSTEE REPORT
1
Annual Report - 2010 - 11
THE SPONSOR
Sponsor of the Mutual Fund, Infrastructure Development Finance Company Limited (IDFC), is a
leading diversified financial institution providing a wide range of financing products and fee-
based services with infrastructure as its focus area. IDFCs key businesses include project
finance, investment banking, asset management, principal investments and advisory services.
IDFC also works closely with government entities and regulators in India to advise and assist in
formulating policy and regulatory frameworks that support private investment and public-private
partnerships in infrastructure development. By execution of the deed of amendment to the Trust
Deed of the Mutual Fund, IDFC was inducted as the New Settler of the Trust (Mutual Fund).
IDFC was established in 1997 as a private sector enterprise by a consortium of public and private
investors and operates as a professionally managed commercial entity. IDFC listed its equity
shares in India pursuant to an initial public offering in August 2005 As on March 31, 2011, IDFCs
shareholders included the Government of India 17.89%, FII/FDI 51.10% and public / others
31.01%. As on March 31, 2011, IDFC had an asset base of over USD 10.62billion, net worth of
USD 2.48billion and market capitalization of Rs 5.07billion (calculate at USD = Rs. 44.5875.)
IDFC AMC TRUSTEE COMPANY LIMITED
ANZ Trustee Company Private Limited, a company registered under the Companies Act, 1956,
was established by Australia and New Zealand Banking Group (ANZ) and had been appointed as
the Trustee of ANZ Grindlays Mutual Fund vide Trust Deed dated December 29, 1999, as
amended from time to time. ANZ sold the mutual fund business to Standard Chartered Bank
(SCB) in 2001, pursuant to which SCB held 100% stake in the equity share capital of the Trustee
Company. SCB agreed to sell the business to Infrastructure Development Finance Company
Limited (IDFC) in 2008. Pursuant to the transaction, IDFC holds 100% of the shares of the Trustee
Company (with effect from May 30, 2008). The company has now been renamed as IDFC AMC
Trustee Company Limited. It shall through its Board of Directors discharge its obligation as
Trustee of IDFC Mutual Fund. The Trustee holds the Trust funds in trust for the benefit of the
unitholders. The Trustees seek to ensure that the Fund and the Schemes floated thereunder are
managed by the AMC in accordance with the requirements specified by the Trust Deed, the SEBI
(Mutual Funds) Regulations, 1996 as amended from time to time, directions & guidelines issued
by SEBI, the Investment Management Agreement, the Stock Exchange requirements (where
applicable), the Association of Mutual Funds in India (AMFI) and other regulatory authorities.
The Directors of IDFC AMC Trustee Company Limited as on July 15, 2011:
Mr. Sunil Kakar (Appointed with effect from June 20, 2011)
Mr. Dattatraya M. Sukthankar
Mr. Jamsheed G. Kanga
Mr. U. Sundararajan
IDFC ASSET MANAGEMENT COMPANY LIMITED
IDFC Asset Management Company Limited, a company incorporated under the Companies Act, 1956 on May 27, 2008, having its Registered Office at One Indiabulls Centre, 841, Jupiter Mills Compound, Senapati Bapat Marg, Elphinstone Road (West), Mumbai 400 013. (formerly at 90, M G Road, Fort, Mumbai 400 001) is the Asset Management Company of IDFC Mutual Fund. It was appointed as the investment manager of the Mutual Fund vide a deed of variation to the Investment Management Agreement, dated May 30, 2008. The Deed of variation to the IMA was entered into between IDFC Asset Management Company Limited and IDFC AMC Trustee Company Limited.
The Company originally known as ANZ Grindlays Asset Management Company Private Limited, was established by Australia and New Zealand Banking Group (ANZ), and had been appointed by the Trustee to act as the Investment Manager of the ANZ Grindlays Mutual Fund vide the Investment Management Agreement dated January 3, 2000. Consequent to sale of business by ANZ to Standard Chartered Bank (SCB) in 2001, 75% stake in the equity share capital of the AMC and 100% stake in the Preference Share Capital of the AMC had been transferred to SCB. IDFC acquired the equity and preference shares held by SCB in the Asset Management Company Private Limited (AMC) on May 30, 2008. IDFC also acquired the equity shares held by minority shareholders in the AMC.
The Directors of IDFC Asset Management Company Limited as on July 15, 2011:
Dr. Rajiv Lall
Mr. Pradip Madhavji
Mrs. Bakul Patel
Mr . Vikram Limaye (Appointed with effect from April 27, 2011)
Fund Review and Future Outlook
The year was a momentous year for the Mutual Fund, as it managed to achieve a unique double and earned recognition from reputed and independent agencies in debt as well as equity.
IDFC Premier Equity Fund ranked as a Seven Star Fund by ICRA for its 3 year performance for the year ending December 31, 2010. The fund has received this award for the last 3 consecutive years.
IDFC Imperial Equity Plan A won a Runner up position for Equity: Large-Cap category in the NDTV Profit Mutual fund Awards 2010.
IDFC Super Saver Income Fund * Medium Term Plan A won a Runner up position for Debt: Income category in the NDTV Profit Mutual fund Awards 2010.
IDFC Premier Equity Fund was awarded as Best Equity Fund - 2010 - Front Runner Scheme in the Wealth Forum AMC Awards 2010.
IDFC Super Saver Income Fund - Medium Term won CNBC-TV18-CRISIL Mutual Fund Awards Winners 2011 under the Income Funds - Short Term category.
IDFC Fixed Maturity Plan - 9th Plan The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized.
February 07, 2005February 28, 2005
13.6573 & 21.41 crores
IDFC Fixed Maturity Plan - Nineteen Months Series 1 (IDFC-FMP-NMS1)
The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized.
September 30, 2008 & October 14, 2008
11.8183 & 21.63 crores
IDFC Fixed Maturity Plan - Thirteen Months Series 1 (IDFC-FMP-TMS1)
The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized.
March 19, 2009 & March 27, 2009
Plan A: 10.7891Plan B: 10.8062& 229.75 crores
IDFC Fixed Maturity Plan - Fifteen Months Series 3 (IDFC-FMP-FMS3)
The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized.
August 25, 2009 & September 07, 2009
10.5717& 1.430 crores
IDFC Fixed Maturity Plan - Half Yearly Series 9 (IDFC-FMP-HYS9)
The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized.
February 17, 2010 & February 25, 2010
10.3124 & 587.67 crores
IDFC Fixed Maturity Plan - Bi-Monthly Series 1 (IDFC-FMP-BMS1)
The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized.
November 01, 2010 & November 09, 2010
10.1387 & 2.266 crores
IDFC Fixed Maturity Plan - Bi-Monthly Series 2 (IDFC-FMP-BMS2)
The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized.
November 03, 2010& November 11, 2010
10.1331& 24.90crores
Name of Scheme Investment Objective Launch & Allotment Dates NAV(Growth) & FUM (Rs.)as on date of maturity
DETAILS OF THE SCHEME(s) AS ON DATE OF MATURITY
TRUSTEE REPORT (Contd.)
1
Annual Report - 2010 - 11
PERFORMANCE OF THE SCHEMES AS ON DATE OF MATURITY
IDFC Fixed Maturity Plan - 9th Plan
CAGR Returns Scheme Returns (%) Benchmark Returns (%)
Since Allotment (February 25, 2008) 6.29% 5.57%
* Benchmark - Crisil Composite Bond Fund Index (CCBFI)Past performance may or may not be substantiated in future.Date of Maturity: April 07, 2010
IDFC Fixed Maturity Plan - Nineteen Months Series 1 (IDFC-FMP-NMS1)
CAGR Returns Scheme Returns (%) Benchmark Returns (%)
Since Allotment (October 14, 2008) 11.31% 8.98%
* Benchmark - Crisil Composite Bond Fund Index (CCBFI)Past performance may or may not be substantiated in future.Date of Maturity: May 06, 2010
IDFC Fixed Maturity Plan - Thirteen Months Series 1 (IDFC-FMP-TMS1)
CAGR Returns Scheme Returns (%) Benchmark Returns (%)
Since Allotment (March 27, 2009) 7.37% 5.36%
* Benchmark Crisil Composite Bond Fund Index (CCBFI)Past performance may or may not be substantiated in future.Date of Maturity: April 21, 2010
IDFC Fixed Maturity Plan - Fifteen Months Series 3 (IDFC-FMP-FMS3)
CAGR Returns Scheme Returns (%) Benchmark Returns (%)
Since Allotment (September 28, 2009) 4.56% 5.19%
* Benchmark - Crisil Liquid Fund Index (CLFI)Past performance may or may not be substantiated in future.Date of Maturity: December 27, 2010
IDFC Fixed Maturity Plan - Half Yearly Series 9 (IDFC-FMP-HYS9)
CAGR Returns Scheme Returns (%) Benchmark Returns (%)
Since Allotment (February 25, 2010) 3.12% 2.61%
* Benchmark - Crisil Composite Bond Fund Index (CCBFI)Past performance may or may not be substantiated in future.Date of Maturity: August 23, 2010
IDFC Fixed Maturity Plan Bi-Monthly Series 1 (IDFC-FMP-BMS1)
CAGR Returns Scheme Returns (%) Benchmark Returns (%)
Since Allotment (November 09, 2010) 1.39% 0.49%
* Benchmark Crisil Composite Bond Fund Index (CCBFI)Past performance may or may not be substantiated in future.Date of Maturity: January 08, 2011
IDFC Fixed Maturity Plan Bi-Monthly Series 2 (IDFC-FMP-BMS2)
CAGR Returns Scheme Returns (%) Benchmark Returns (%)
Since Allotment (November 11, 2010) 1.33% 0.55%
* Benchmark - Crisil Composite Bond Fund Index (CCBFI)Past performance may or may not be substantiated in future.Date of Maturity: January 10, 2011
TRUSTEE REPORT (Contd.)
INVESTOR SERVICES
The convenience of transaction has been enhanced by introducing the following facilities through our website www.idfcmf.com:
a. View & Print Account Statement Online.
b. Purchase, Redeem & Switch online using PIN.
c. Make Additional Purchase without PIN, by just mentioning the PAN No.
d. Option to invest online with Debit Card.
As a part of Go Green Initiative, the following measures have been introduced:
a. Account Statements by E-mail to the investors who have given their email ids.
b. Regular Communications are being sent through Email.
c. Transaction Confirmations are sent through SMS.
d. SIP Maturity & Rejections are intimated to investors through SMS.
Introduced the option of making purchases over phone.
SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies are in accordance with SEBI (Mutual Fund) Regulations, 1996. For further details please refer to the detailed financials released by the Mutual Fund.
UNCLAIMED DIVIDEND & REDEMPTIONS
The distribution of Dividend is made out of Net Surplus subject to availability of distributable profits, as computed in accordance with SEBI Regulations. The AMC reserves the right to change the periodicity for declaration of dividend.
Unclaimed Dividend & Redemptions:
There are no unclaimed dividend and redemptions for the schemes mentioned in the said Annual Trustee Report.
STATUTORY DETAILS
The price and redemption value of units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments.
The Sponsors are not responsible or liable for any loss resulting from the operations of the scheme of the fund beyond their total contribution of Rs. 30,000 for setting up the fund and such other accretions / additions to the same. The sponsor shall be responsible to safeguard the interests of the unit holders and ensure that the AMC functions in the interest of the investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Scheme Information Document of the scheme
On written request and on payment of requisite fee present and prospective unit holders/investors can obtain copy of the trust deed, the annual report of the scheme and the asset management company and the text of the relevant scheme. Full Annual Report is also disclosed on the website (www.idfcmf.com) and is available for inspection at the Head Office of the Mutual Fund.
9-12 months
6-9 months
3-6 months
0-3 months
Pending (as on 31st March 2011)
NonActionable*Beyond
180 days60-180
daysWithin
30 days30-60 days
Resolved(b) No of complaints
received during the year
(FY 2010-2011)
(a) No. of complaints pending At the
beginning of the year Action on (a) and (b) (31st March 2010)
Type of complaintComplaint Code
IB Non receipt of dividend on units 8 414 395 10 2 0 0 5 2 0 0
IY Interest on delayed payment of dividend 0 4 4 0 0 0 0 0 0 0 0
IE Non receipt of redemption proceeds 32 878 854 17 3 0 0 3 1 0 0
IX Interest on delayed payment of redemption 0 0 0 0 0 0 0 0 0 0 0
IC&IN Non receipt of statement of account /units certificate 0 406 406 0 0 0 0 0 0 0 0
2B Discrepancy in statement of account 10 377 369 4 4
2C Non receipt of annual report/abridged summary 0 0 0 0 0 0 0 0 0 0 0
3A Wrong switch between schemes 0 0 0 0 0 0 0 0 0 0 0
3B Unauthorized switch between schemes 0 0 0 0 0 0 0 0 0 0 0
3C Deviation from scheme attributes 0 0 0 0 0 0 0 0 0 0 0
3D Wrong or excess charges /load 0 0 0 0 0 0 0 0 0 0 0
3E Non updation of changes namely address.pan, bank details, nomination etc 0 28 28 0 0 0 0 0 0 0 0
IG, IO & IZ Others 62 2999 2823 82 9 0 0 85 0 0 0
DE Data entry errors 0 290 290 0 0 0 0 0 0 0 0
Redressal of Complaints received against Mutual Funds (MFs) during 2010-11:
Name of Mutual Fund : IDFC Mutual Fund
Total number of folios : 181833
1
Annual Report - 2010 - 11
VOTING POLICY
BACKGROUND OF THE POLICY
IDFC Asset Management Company Ltd (AMC) is the asset management company for IDFC
Mutual Fund. The AMC while managing the schemes would be obligated to act in the best
interests of the investors and would participate in meetings and exercise voting rights as
shareholders in the companies wherein the scheme has invested.
This Policy lays down the broad guidelines to be adopted while considering matters in which the
AMC deems necessary to participate as shareholders in companies. The AMC believes that
while due diligence is exercised in the process of investment decision making; it would be the
responsibility of the AMC to review performance on continual basis including matters proposed
by the management for shareholders approval. The custodian shall inform the AMC upon receipt
of notice from the company seeking shareholders approval, AMC shall review the impact of such
matters placed for shareholders consideration and take decision on exercising its rights. In
general, the AMC does not have the intention to participate directly or indirectly in the
management of the companies but it will use its influence as a shareholder amongst others by
exercising its voting rights in accordance with the best interests of its funds unit holders.
PROXY VOTING GUIDELINES
With respect to investments in group companies of the AMC, the AMC shall endevour to abstain
from voting for / against unless the resolution or the matter is detrimental to the interest of the
investors. The AMC shall abstain from voting in any resolutions of any other companies unless
the committee believes the resolution is not in the interest of investors.
On receipt of notice from the investee company the Custodian shall inform the AMC, the
resolutions for voting shall be discussed at the Investment committee meeting.
With respect decision making the Investment Committee of the AMC shall review all proposals,
even those that may be considered to be routine matters. Such proposals shall be considered
based on the relevant facts and circumstances. Investment Manager may deviate from the
general policies and procedures when it determines that the particular facts and circumstances
warrant such deviation to protect the interests of the Clients. These guidelines cannot provide an
exhaustive list of all the issues that may arise nor can Investment Manager anticipate all future
situations.
PROCESSES TO BE ADOPTED FOR PARTICIPATING IN GENERAL MEETING
Delegation of powers to vote: The Chief Executive Officer/ Chief Investment Officer / Head - Legal
& Compliance of IDFC Asset Management Co. Ltd. will represent IDFC Mutual Fund as proxy
voter or shall delegate authority to the Custodian of the fund to vote on behalf of IDFC Mutual
Fund.
Record keeping: The AMC shall maintain records of all notices received through the Custodian on
matters placed for vote and decision (abstain/vote for or against) taken by the Investment
Committee.
The voting policy followed by IDFC MF is available on www.idfcmf.com. The cases where IDFC
MF had participated/voted for /against any resolutions of the companies in which IDFC MF has
any investment is listed hereunder:
TRUSTEE REPORT (Contd.)
Company Name : TILAKNAGAR INDUSTRIES LIMITED
No. of Shares Held : 835716
Management Proposals
Meeting Type of Proposal Management Vote (For/ Date Meeting Recommendation Against/Abstain)
20-09-10 AGM To receive, consider and adopt the audited accounts for the year. Passed by show of hand For
To declare dividend on 12% Compulsory Convertible Cumulative Preference Shares of the Company on pro-rata basis. Passed by show of hand For
To declare final dividend Passed by show of hand For
To appoint a Director in place of Mr. V. B. Haribhakti, however he offers himself for reappointment. Passed by show of hand For
To appoint a Director in place of Dr. Vishnu Kanhere, however he offers himself for reappointment. Passed by show of hand For
To re-appoint M/s. Batliboi & Purohit as Auditors of the Company and fix their remuneration. Passed by show of hand For
Issue of Securities or a combination thereof for organic and inorganic growth of the Company. Passed by show of hand For
Re-classification of the Authorized Share Capital. Passed by show of hand For
Increase in th Authorized Share Capital. Passed by show of hand For
Amendment to the Articles of Association. Passed by show of hand For
Authorisation of ESOP's. Passed by show of hand For
Revision in the remuneration payable to Mr. Amit Dahanukar, chairman & Managing Director. Passed by show of hand For
Revision in remuneration payable to Mrs. Shivani Amit Dahanukar, executive Director. Passed by show of hand For
Increase in Borrowing powers. Passed by show of hand For
Issue of Bonus Share. Passed by show of hand For
Increase of FII limits. Passed by show of hand For
Increase in Convertible Warrants. Passed by show of hand Against
Shareholder Proposals
NIL
ACKNOWLEDGEMENT
The Board of Directors of IDFC AMC Trustee Company wish to place on record their gratitude to the unitholders for their continued support and to the Securities and Exchange Board of India, the Reserve
Bank of India, the Registrars, Bankers, the Custodians, Infrastructure Development Finance Company Limited (IDFC), the present Sponsor of IDFCMF, Standard Chartered Bank, the erstwhile sponsor of
the Mutual Fund, various service providers and business partners and the employees of the AMC for the support provided by them during the year.
For IDFC AMC Trustee Company Limited
(The Trustee of IDFC Mutual Fund)
Chairman
Place: Mumbai
Date: July 15, 2011
1
Annual Report - 2010 - 11
AUDITORS REPORT
We have audited the attached Balance Sheet of IDFC MUTUAL FUND IDFC FIXED MATURITY 9TH PLAN (the Fund) as at April 7,2010 and the Revenue Account of the Fund for the period from April 1, 2010 to April 7, 2010, annexed thereto, and report thereon as follows:
a) The Balance Sheet and the Revenue Account dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies.
b) Our audit was conducted in accordance with the generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
c) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
d) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of account of the Fund.
e) Non - traded securities have been valued in accordance with the guidelines notified by the Securities and Exchange Board of India. In our opinion, these valuations are fair and reasonable.
f) Without qualifying our report, we draw attention to Note No.10.4 of Schedule 10 regarding non-inclusion in the accounts of bank accounts and liability of brokerage for the reason indicated therein.
g) Without qualifying our opinion, we draw attention to Note No.10.15 of Schedule 10 wherein the Management of IDFC Asset Management Company Limited has explained its rationale regarding certain Accounting Standards issued by the Institute of Chartered Accounts of India as not being applicable to mutual funds.
h) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Fund as at April 7, 2010 and
(ii) in the case of the Revenue Account, of the surplus of the Fund for the period from April 1, 2010 to April 7, 2010.
For DELOITTE HASKINS & SELLSChartered Accountants
(Registration No. 117365W)
Z. F. Billimoria(Partner)
(Membership No. 42791)
MUMBAI, 21st July, 2011ZFB/PG
To The Board of Directors of IDFC AMC Trustee Company Limited
We have audited the attached Balance Sheet of IDFC MUTUAL FUND IDFC FIXED MATURITY PLAN NINETEEN MONTHS SERIES - 1 (the Fund) as at May 6, 2010 and the Revenue Account of the Fund for the period from April 1, 2010 to May 6, 2010, annexed thereto, and report thereon as follows:
a) The Balance Sheet and the Revenue Account dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies.
b) Our audit was conducted in accordance with the generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
c) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
d) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of account of the Fund.
e) Non - traded securities have been valued in accordance with the guidelines notified by the Securities and Exchange Board of India. In our opinion, these valuations are fair and reasonable.
f) Without qualifying our report, we draw attention to Note No.10.5 of Schedule 10 regarding non-inclusion in the accounts of bank accounts and liability of brokerage for the reason indicated therein.
g) Without qualifying our opinion, we draw attention to Note No. 10.16 of Schedule 10 wherein the Management of IDFC Asset Management Company Limited has explained its rationale regarding certain Accounting Standards issued by the Institute of Chartered Accounts of India as not being applicable to mutual funds.
h) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Fund as at May 6, 2010 and
(ii) in the case of the Revenue Account, of the surplus of the Fund for the period from April 1, 2010 to May 6, 2010.
For DELOITTE HASKINS & SELLSChartered Accountants
(Registration No. 117365W)
Z. F. Billimoria(Partner)
(Membership No. 42791)
MUMBAI, 21st July, 2011ZFB/PG
1
Annual Report - 2010 - 11
AUDITORS REPORT
We have audited the attached Balance Sheet of IDFC MUTUAL FUND IDFC FIXED MATURITY PLAN THIRTEEN MONTHS SERIES - 1 (the Fund) as at April 21, 2010 and the Revenue Account of the Fund for the period from April 1, 2010 to April 21, 2010, annexed thereto, and report thereon as follows:
a) The Balance Sheet and the Revenue Account dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies.
b) Our audit was conducted in accordance with the generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
c) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
d) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of account of the Fund.
e) Non - traded securities have been valued in accordance with the guidelines notified by the Securities and Exchange Board of India. In our opinion, these valuations are fair and reasonable.
f) Without qualifying our report, we draw attention to Note No.10.4 of Schedule 10 regarding non-inclusion in the accounts of bank accounts and liability of brokerage for the reason indicated therein.
g) Without qualifying our opinion, we draw attention to Note No. 10.14 of Schedule 10 wherein the Management of IDFC Asset Management Company Limited has explained its rationale regarding certain Accounting Standards issued by the Institute of Chartered Accounts of India as not being applicable to mutual funds.
h) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view in conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the Fund as at April 21, 2010 and
(ii) in the case of the Revenue Account, of the surplus of the Fund for the period from April 1, 2010 to April 21, 2010.
For DELOITTE HASKINS & SELLSChartered Accountants
(Registration No. 117365W)
Z. F. Billimoria(Partner)
(Membership No. 42791)
MUMBAI, 21st July, 2011ZFB/PG
To The Board of Directors of IDFC AMC Trustee Company Limited
We have audited the attached Balance Sheet of IDFC MUTUAL FUND IDFC FIXED MATURITY PLAN FIFTEEN MONTHS SERIES - 3 (the Fund) as at December 27, 2010 and the Revenue Account of the Fund for the period from April 1, 2010 to December 27, 2010, annexed thereto, and report thereon as follows:
a) The Balance Sheet and the Revenue Account dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies.
b) Our audit was conducted in accordance with the generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
c) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
d) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of account of the Fund.
e) Non - traded securities have been valued in accordance with the guidelines notified by the Securities and Exchange Board of India. In our opinion, these valuations are fair and reasonable.
f) Without qualifying our report, we draw attention to Note No.10.4 of Schedule 10 regarding non-inclusion in the accounts of bank accounts and liability of brokerage for the reason indicated therein.
g) Without qualifying our opinion, we draw attention to Note No.10.15 of Schedule 10 wherein the Management of IDFC Asset Management Company Limited has explained its rationale regarding certain Accounting Standards issued by the Institute of Chartered Accounts of India as not being applicable to mutual funds.
h) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Fund as at December 27, 2010 and
(ii) in the case of the Revenue Account, of the surplus of the Fund for the period from April 1, 2010 to December 27, 2010
For DELOITTE HASKINS & SELLSChartered Accountants
(Registration No. 117365W)
Z. F. Billimoria(Partner)
(Membership No. 42791)
MUMBAI, 21st July, 2011ZFB/PG
1
Annual Report - 2010 - 11
AUDITORS REPORT
We have audited the attached Balance Sheet of IDFC MUTUAL FUND - IDFC FIXED MATURITY PLAN - HALF YEARLY SERIES - 9 (the Fund) as at August 23, 2010 and the Revenue Account of the Fund for the period from April 1, 2010 to August 23, 2010, annexed thereto, and report thereon as follows:
a) The Balance Sheet and the Revenue Account dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies.
b) Our audit was conducted in accordance with the generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
c) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
d) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of account of the Fund.
e) Non - traded securities have been valued in accordance with the guidelines notified by the Securities and Exchange Board of India. In our opinion, these valuations are fair and reasonable.
f) Without qualifying our report, we draw attention to Note No.10.4 of Schedule 10 regarding non-inclusion in the accounts of bank accounts and liability of brokerage for the reason indicated therein.
g) Without qualifying our opinion, we draw attention to Note No. 10.14 of Schedule 10 wherein the Management of IDFC Asset Management Company Limited has explained its rationale regarding certain Accounting Standards issued by the Institute of Chartered Accounts of India as not being applicable to mutual funds.
h) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Fund as at August 23, 2010 and
(ii) in the case of the Revenue Account, of the surplus of the Fund for the period from April 1, 2010 to August 23, 2010
For DELOITTE HASKINS & SELLSChartered Accountants
(Registration No. 117365W)
Z. F. Billimoria(Partner)
(Membership No. 42791)
MUMBAI, 21st July, 2011ZFB/PG
To The Board of Directors of IDFC AMC Trustee Company Limited
We have audited the attached Balance Sheet of IDFC MUTUAL FUND - IDFC - FIXED MATURITY PLAN BI-MONTHLY SERIES - 1 (the Fund) as at January 8, 2011 and the Revenue Account of the Fund for the period from November 9, 2010 to January 8, 2011, annexed thereto, and report thereon as follows:
a) The Balance Sheet and the Revenue Account dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies.
b) Our audit was conducted in accordance with the generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
c) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
d) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of account of the Fund.
e) Non - traded securities have been valued in accordance with the guidelines notified by the Securities and Exchange Board of India. In our opinion, these valuations are fair and reasonable.
f) Without qualifying our report, we draw attention to Note No.9.5 of Schedule 9 regarding non-inclusion in the accounts of bank accounts and liability of brokerage for the reason indicated therein.
g) Without qualifying our opinion, we draw attention to Note No.9.15 of Schedule 9 wherein the Management of IDFC Asset Management Company Limited has explained its rationale regarding certain Accounting Standards issued by the Institute of Chartered Accounts of India as not being applicable to mutual funds.
h) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Fund as at January 8, 2011 and
(ii) in the case of the Revenue Account, of the surplus of the Fund for the period from November 9, 2010 to January 8, 2011.
For DELOITTE HASKINS & SELLSChartered Accountants
(Registration No. 117365W)
Z. F. Billimoria(Partner)
(Membership No. 42791)
MUMBAI, 21st July, 2011ZFB/PG
1
Annual Report - 2010 - 11
AUDITORS REPORT
We have audited the attached Balance Sheet of IDFC MUTUAL FUND - IDFC FIXED MATURITY PLAN - BI-MONTHLY SERIES - 2 (the Fund) as at January 10, 2011 and the Revenue Account of the Fund for the period from November 11, 2010 to January 10, 2011, annexed thereto, and report thereon as follows:
a) The Balance Sheet and the Revenue Account dealt with by this report have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies.
b) Our audit was conducted in accordance with the generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
c) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
d) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of account of the Fund.
e) Without qualifying our report, we draw attention to Note No. 9.5 of Schedule 9 regarding non-inclusion in the accounts of bank accounts and liability of brokerage for the reason indicated therein.
f) Without qualifying our opinion, we draw attention to Note No. 9.15 of Schedule 9 wherein the Management of IDFC Asset Management Company Limited has explained its rationale regarding certain Accounting Standards issued by the Institute of Chartered Accounts of India as not being applicable to mutual funds.
g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Fund as at January 10, 2011 and
(ii) in the case of the Revenue Account, of the surplus of the Fund for the period from November 11, 2010 to January 10, 2011.
For DELOITTE HASKINS & SELLSChartered Accountants
(Registration No. 117365W)
Z. F. Billimoria(Partner)
(Membership No. 42791)
MUMBAI, 21st July, 2011ZFB/PG
To The Board of Directors of IDFC AMC Trustee Company Limited
1
Annual Report - 2010 - 11
IDFC FIXED MATURITY - 9TH PLAN
(Currency: Indian Rupees)
April 7, 2010 March 31, 2010
Schedule
LIABILITIES
Unit capital 3 160,412,116 160,412,116
Reserves and surplus 4 53,771,533 55,611,348
Current liabilities and provisions 5 2,242,900 1,709,463
216,426,549 217,732,927
ASSETS
Investments 6 212,032,796 212,837,056
Current assets 7 4,393,753 4,895,871
216,426,549 217,732,927
- -
Net Asset Value per unit
Growth Option Plan -A 13.6573 13.2669
Dividend Option Plan -A 10.0000 11.1819
Significant accounting policies 2
Notes to financial statements 10
The schedules referred to above form an integral part of the Balance Sheet.
In terms of our report attached.
For Deloitte Haskins & Sells For IDFC Asset Management For IDFC AMC Trustee
Chartered Accountants Company Limited Company Limited
Z. F. Billimoria Naval Bir Kumar Director
Partner President & CEO
Director Director
Kenneth Andrade
Head - Investments
Mumbai, 21st July, 2011 Anupam Joshi
Fund Manager
Balance Sheet as at April 7, 2010
1
Annual Report - 2010 - 11
IDFC FIXED MATURITY - 9TH PLAN
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)April 1, 2010 to April 1, 2009 to
April 7, 2010 March 31, 2010
Schedule
INCOME AND GAINS
Interest and discount 8 204,888 14,751,790
Profit on inter-scheme transfer/sale of investments - 489,271
Provision for diminution in value of investments written back - 10,477,440
Load collected credited back to the Scheme 5,981,602 16,643
6,186,490 25,735,144
EXPENSES AND LOSSES
Loss on sale/redemption of investments (other
than inter-scheme transfer/sale of investments)
- 12,744,490
Loss on inter-scheme transfer/sale of investments - 68,265
Investment management and advisory fees 18,210 920,861
Service tax on investment management and advisory fees 1,876 94,849
Registrar fees 1,532 66,180
Custodian fees 624 32,888
Audit fees (net of audit fees of Rs 11,030 borne by AMC) - 55,150
Other operating expenses 9 16 1,468
22,258 13,984,151
Surplus for the period/year 6,164,232 11,750,993
Distributable Surplus 6,164,232 11,750,993
Income distributed ( including distribution tax) (2,022,445) -
Retained Surplus, beginning of the period/year 62,987,480 51,236,487
Retained Surplus, end of the period/year 67,129,267 62,987,480
Significant accounting policies 2
Notes to financial statements 10
The schedules referred to above form an integral part of the Revenue Account.
In terms of our report attached.
For Deloitte Haskins & Sells For IDFC Asset Management For IDFC AMC Trustee
Chartered Accountants Company Limited Company Limited
Z. F. Billimoria Naval Bir Kumar Director
Partner President & CEO
Director Director
Kenneth Andrade
Head - Investments
Mumbai, 21st July, 2011 Anupam Joshi
Fund Manager
Revenue Account
1
Annual Report - 2010 - 11
IDFC FIXED MATURITY - 9TH PLAN
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
3 Unit capital (Units) Amount (Rs.) (Units) Amount (Rs.)Units of Rs. 10 each fully paid
Growth Option Plan -A
Units issued, initial offer 14,969,222.417 149,692,224 14,969,222.417 149,692,224
Units outstanding, beginning of the period/year 14,702,641.635 147,026,416 14,969,222.417 149,692,224
Less : Units repurchased during the period/year - - 266,580.782 2,665,808
Units outstanding, end of the period/ year 14,702,641.635 147,026,416 14,702,641.635 147,026,416
Dividend Option Plan -A
Units issued, initial offer 1,367,764.027 13,677,640 1,367,764.027 13,677,640
Units outstanding, beginning of the period/year 1,338,570.000 13,385,700 1,367,764.027 13,677,640
Less : Units repurchased during the period/year - - 29,194.027 291,940
Units outstanding, end of the period/ year 1,338,570.000 13,385,700 1,338,570.000 13,385,700
Total
Units issued, initial offer 16,336,986.444 163,369,864 16,336,986.444 163,369,864
Units outstanding, beginning of the period/year 16,041,211.635 160,412,116 16,336,986.444 163,369,864
Less : Units repurchased during the period/year - - 295,774.809 2,957,748
Units outstanding, end of the period/ year 16,041,211.635 160,412,116 16,041,211.635 160,412,116
4 Reserves and surplusUnit Premium Reserve
Opening Balance (13,357,734) (12,495,059)
Additions / (Redemptions) during the year (net of transfer to
Equalisation Reserve)
- (862,675)
Closing Balance (13,357,734) (13,357,734)
Accumulated Load
Opening Balance 5,981,602 5,921,837
Load charges received during the period/year 95,037
5,981,602 6,016,874
Less: Load collected credited back to the Scheme (5,981,602) 35,272
Closing Balance - 5,981,602
Retained Surplus as at the end of the period/year 67,129,267 62,987,480
53,771,533 55,611,348
March 31, 2010
April 7, 2010 March 31, 2010
Schedules to the financial statements
April 7, 2010
1
Annual Report - 2010 - 11
IDFC FIXED MATURITY - 9TH PLAN
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
Schedules to the financial statements
5 Current liabilities and provisionsInvestment managment and advisory fees payable 151,332 144,799
Audit fees payable 60,665 49,636
Registrar fees payable 1,531 -
Unit redemption money payable - 1,507,708
Tax deducted at source payable 6,067 6,619
Dividend payable 1,771,549 -
Dividend distribution tax payable 250,896
Unclaimed dividend - 480
CCIL fees payable 237 -
Other liabilities 623 221
2,242,900 1,709,463
6 Investments
Cost* Market / Fair Value Cost* Market / Fair Value
Certificate of deposits 149,397,438 149,397,438 149,251,994 149,251,994
Commercial papers 49,634,414 49,634,414 49,583,232 49,583,232 Collateralised Borrowing and Lending Obligations(CBLO) 13,000,944 13,000,944 14,001,830 14,001,830
212,032,796 212,032,796 212,837,056 212,837,056
*
7 Current assetsBalances with banks**
-in current accounts 4,386,707 4,891,039
-in unclaimed dividend accounts - 480
Other assets - 4,352
Receivable from Asset Management Company 7,046 -
4,393,753 4,895,871
**Certain bank accounts of the Scheme are held in the name of the mutual fund for the benefit of the Scheme.
April 7, 2010 March 31, 2010
Cost includes discount accrued in respect of money market instruments till valuation date. Investments of the Scheme are registered in the name of the Scheme except for
Collateralised Borrowing and Lending Obligations (CBLO), which are registered in the name of the Mutual Fund for the benefit of Scheme.
1
Annual Report - 2010 - 11
IDFC FIXED MATURITY - 9TH PLAN
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
Schedules to the financial statements
8 Interest and Discount April 1, 2010 to April 1, 2009 to
April 7, 2010 March 31, 2010
Debentures and bonds - 13,013,384
Commercial papers 51,182 112,621
Certificate of deposits - 1,525,839
Call Deposits with Banks 145,444 -
Collateralised Borrowing and Lending Obligations(CBLO) 8,262 94,140
Reverse repos - 5,806
204,888 14,751,790
9 Other Operating Expenses
Bank charges - 706
Clearing charges 16 762
16 1,468
1
Annual Report - 2010 - 11
Schedules to the financial statements (Continued)
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
1. Background
IDFC Mutual Fund (the Fund) is sponsored by Infrastructure Development Finance
Company Limited (IDFC) and is constituted as a Trust under the Indian Trust Act, 1882 with
IDFC AMC Trustee Company Limited (the Trustee) as trustee. In accordance with the
Securities and Exchange Board of India (SEBI) (Mutual Funds) Regulations, 1996 (the
Regulations) and amendments thereto, as applicable, the Trustee has entrusted the investment
management function to the AMC.
IDFC Fixed Maturity 9th Plan
IDFC Fixed Maturity 9 TH Plan (GFMP-9) is a closed ended Scheme launched on
February 7, 2005 and the units were allotted on February 28, 2005. The schemes maturity date
is April 7 2010. As stated in the offer document, the scheme is a close ended scheme and its
investment objective is to seek to generate income by investing in a portfolio of debt and
money market instruments normally maturing in line with the time profile of the scheme.
* In case the maturity date falls on a holiday, the maturity date will be the next working day.
The Scheme offers a choice of two Investment Options viz., Growth and Dividend Option.
Under the Dividend Option reinvestment facility is available.
2. Significant accounting policies
2.1 Basis of preparation of financial statements
The financial statements are prepared and presented under the historical cost convention, on
the accrual basis of accounting and in accordance with the accounting policies and standards
specified in the Ninth Schedule of the Regulations and amendments thereto, and the
accounting principles generally accepted in India and comply with the accounting standards
and the guidance notes issued by the Institute of Chartered Accountants of India (the ICAI),
to the extent applicable.
2.2 Use of estimates
The preparation of financial statements in conformity with the Generally Accepted Accounting
Principles (GAAP) requires the Management to make estimates and assumptions that affect
the reported amounts of assets and liabilities as at the date of the financial statements and the
reported amount of revenues and expenses during the reported period. The estimates and the
assumptions used in the accompanying financial statements are based upon the Managements
evaluation of relevant facts and circumstances as at the date of the financial statements. Actual
results may differ from the estimates and assumptions used in preparing the accompanying
IPO Launch Date Allotment Date Maturity Date*
February 7, 2005 February 28, 2005 April 7, 2010
1
Annual Report - 2010 - 11
Schedules to the financial statements (Continued)
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
financial statements. Any revision to accounting estimates is recognised prospectively in the
current and future periods.
2.3 Investments
Basis of accounting
Transactions for purchase and sale of investments are recorded on trade date. The cost of
investments includes all costs incurred in acquiring the investments and incidental to
acquisition of investments. Any front-end discount on privately placed investments is
reduced from the cost of such investments.
Broken period interest paid and received is not included in the cost of purchases and sales
proceeds respectively.
Valuation
Investments for the purpose of valuation are classified as traded and non-traded in
accordance with the provisions of the Regulations. The investments were valued as under.
Traded debt securities
Traded debt securities (other than Government Securities) with residual maturity over 182
days are valued at the last quoted closing price on the National Stock Exchange (the
NSE) as on the date of valuation or the last quoted closing price on the principal
exchange on which the security is traded on the date of valuation, where on the particular
valuation day a security is not quoted on the NSE.
Traded debt securities (other than Government Securities) with a residual maturity over
182 days, but which have not been traded on the date of valuation are valued on the same
basis as that of a non-traded debt security with residual maturity over 182 days.
All traded debt securities (other than Government Securities) with a residual maturity upto
182 days are valued on same basis as money market instruments.
Government Securities are valued at prices obtained from Credit Rating Information
Services of India Limited ('CRISIL') in accordance with the guidelines for valuation of
securities for mutual funds prescribed in the Regulations.
Non-traded/ thinly traded debt securities
Non-traded debt securities (other than Government Securities) are those that are not traded
on any stock exchange for a period of fifteen days prior to the valuation date.
Thinly traded debt securities (other than Government Securities ) are those securities
which do not have individual trades in that security in marketable lots (currently Rs 5
Crore) on the principal stock exchange( NSE) or any other stock exchange.
1
Annual Report - 2010 - 11
Schedules to the financial statements (Continued)
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
Non-traded / thinly traded debt securities with residual maturity of over 182 days to
maturity are valued on a yield to maturity basis, by using spreads over the benchmark rate
to arrive at the yield for pricing the security. These are valued as per procedures approved
by the Trustees and on the basis of the valuation principles laid down by the Regulations.
Non-traded securities purchased with residual maturity up to 182 days are valued at cost /
last valuation price (including accrued interest till the beginning of the day) plus the
difference between the redemption value (inclusive of interest) and cost / last valuation
price, spread uniformly over the remaining maturity period of the instrument.
Debt securities with put / call options
Securities with call option are 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 taken as the value of the instrument.
Securities with put option are 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 taken as the value of the instrument.
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 at the prevailing market price.
Money Market Instruments
Traded money market securities are valued at the yield they were traded as on the
valuation date. In case these securities are not traded, they are valued at the last traded
price plus accretion of difference between the redemption value and the last traded price.
Non-traded money market securities are valued on the basis of amortised cost (cost plus
accrued interest uniformly amortised over the remaining maturity period of the
instrument).
Reverse Repos
Instruments bought on repo basis are valued at the resale price after deduction of
applicable interest up to date of resale.
Collateralised Borrowings and Lending Obligations (CBLO) and Bills Rediscounting (BRDS)
CBLOs and BRDS are valued at cost plus accrued interest.
Asset backed securities
Asset backed securities with a residual maturity over 182 days and having variable cash
flows are valued on the same basis as that for non-traded securities with residual maturity
over 182 days.
1
Annual Report - 2010 - 11
Schedules to the financial statements (Continued)
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
Asset backed securities with a residual maturity upto 182 days and having variable cash
flows are valued on the basis of amortisation, the last valued yield being the base for
amortisation.
Mutual Fund Units
Mutual fund units are valued at the respective Schemes per unit net asset value (NAV)
prevailing as at the valuation date.
In accordance with the Guidance Note on Accounting for Investments in the Financial
Statements of Mutual funds issued by the ICAI, (pursuant to the Eleventh Schedule of the
Regulations), net unrealised gain or loss in the value of investments is determined separately
for each category of investments. The loss on investments sold or transferred during the year is
charged to the revenue account instead of being first adjusted against the provision for
diminution, if already created in the previous year. The unrealised loss/gain is reversed on the
first day of the immediately succeeding financial year. However, this departure from the
Guidance Note does not have any net impact on the Schemes net assets and the financial
statements of the Scheme.
2.4 Revenue recognition
Interest income is recorded on time proportionate basis.
Profit or loss on sale / redemption of investments represents sale proceeds less weighted
average cost and is recognised on a trade date basis.
In accordance with the Guidance Note on Accounting for Investments in the Financial
Statements of Mutual Funds issued by the ICAI (pursuant to the Eleventh Schedule of the
Regulations), net unrealised appreciation/diminution in the value of investments and
derivatives is determined for each categories of investments and derivatives, wherein the cost
is compared with the market / fair value and the resultant appreciation is credited to Unrealised
Appreciation Reserve and any diminution is charged to the revenue account.
2.5 Computation of Net Asset Value (NAV)
The NAV of a Scheme is computed separately for units issued under the various options,
although the corresponding Plans investments and other net assets are managed as a single
portfolio. For computing the NAV for various options, daily income earned, including realised
and unrealised gains or losses in the value of investments and expenses incurred by the
corresponding Scheme are allocated to the options in proportion to the net assets of each
option.
1
Annual Report - 2010 - 11
Schedules to the financial statements (Continued)
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
10. Notes to financial statements
10.1 Investment management and advisory fees
The Scheme has paid / accrued for investment management and advisory fees in accordance
with the Offer Document and the agreement with the AMC as amended from time to time after
excluding investments as prescribed in the SEBI Regulations, excluding investments in other
Schemes and the net asset value of the AMCs investments in the Scheme, if any. As per the
Offer Document, the AMC is entitled to receive the said fee up to an annual rate of 1.25% of
the Schemes weekly average net assets on the investment up to Rs 100 crores and at the rate
of 1% thereafter. For the current period, the Scheme has accrued investment management and
advisory fees as a percentage of the average net assets as follows:
Current Year Previous Year
0.45% 0.43%
10.2 Trustee fees
No Trusteeship fees have been charged to the Scheme.
10.3 Custodian fees
Deutsche Bank AG, India provides custodian services to the Scheme for which it receives
custodian fees as per the terms of the custodian agreement.
10.4 Commission payable to Agent
The total Commission Payable to Agents as at 31st March, 2011 for all the Schemes of the
Mutual Fund amounting to Rs.47,654,178/- (31st March, 2010 : amount unascertained) has
been funded by the Schemes of the Mutual Fund in separate Bank Accounts. However, these
Bank Accounts and the liability for brokerage have not been reinstated in the books of account
of the Schemes, as Scheme - wise details of the Commission Payable to Agents are not readily
available.
10.5 Income tax
No accounting for income tax has been made in the financial statement as the Scheme qualifies
as recognised Mutual Fund under Section 10 (23D) of the Income-tax Act, 1961 and the Direct
Tax Laws (Amendment) Act, 1988.
10.6 Aggregate value of purchases and sales
The aggregate value of investments purchased and sold (including redeemed) during the year
and these amounts as a percentage of average net assets are as follows:
1
Annual Report - 2010 - 11
Schedules to the financial statements (Continued)
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
Current Period Previous Year
Purchases % Purchases %
13,000,000 6.17% 2,529,382,941 1187.61%
Current Period Previous Year
Sales % Sales %
226,041,942 107.27% 2,518,118,558 1182.33%
10.7 Income and expenditure
The total income (net of loss on sale of investments and net change in unrealised diminution in
value of investments) and expenditure (excluding provision for diminution and deferred
revenue expenditure) and these amounts as a percentage of the Schemes average net assets
are:
Income:
Current Period Previous Year
Amount % Amount %
6,186,489 153.09% 12,922,389 6.07%
Expenditure:
Current Period Previous Year
Amount % Amount %
22,257 0.55% 1,171,396 0.55%
10.8 Disclosure under regulation 25 (8) of SEBI Regulations
a) There are no commission and brokerages paid to the sponsor or any of its associates either
during the current period.
b) The Scheme has made payments to its associates, for services rendered by them, during the
period as under:-
Amount
% of equity capital held by the
sponsors of its subsidiary/associates
as at
Entity Nature of payment Current
Period
Previous
Year April 07, 2010 Previous Year
IDFC Asset
Management
Co. Ltd.
Investment management
and advisory fees
(Inclusive of service tax) 20,086 1,015,710 100% 100%
1
Annual Report - 2010 - 11
Schedules to the financial statements (Continued)
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
The Scheme has not subscribed to any issues of equity or debt on private placement basis
where the sponsor or its associate companies have acted as arranger or manager.
10.9 Disclosure under regulation 25(11) of the Regulations
Details of investment in companies that hold more than 5% of NAV of any Scheme of the
Fund are disclosed in Annexure A.
The Scheme of the Fund has invested in companies, which hold / have held units in excess of
5% of the net asset value of any Scheme of the Fund. These investments were made solely on
the basis of sound fundamentals of the respective companies.
10.10 Details of large holdings
There are no unit holders holding over 25% of the net assets in the Scheme as at the Balance
Sheet date.
10.11 Portfolio holding (market / fair value):
The portfolio holdings of the Scheme as at the Balance Sheet date are disclosed in Annexure
B.
All investments, excluding mutual fund units, are held in safe custody with Deutsche Bank
AG, India /Reserve Bank of India.
10.12 Unclaimed redemption and unclaimed dividend
After a period of six months from the due dates of the respective dividend declaration, all
unclaimed amounts are being transferred to a fixed deposit on a quarterly basis. Such amounts
along with interest earned would be paid to the relevant investors when claimed by the
respective investors.
As at Balance Sheet date, unclaimed redemption and unclaimed dividend from the Scheme
aggregate Rs Nil.
10.13 Dues to Micro, Small and Medium Enterprises
On the basis of the information and records available with the Management, there are no
Micro, Small and Medium (MSMED) enterprise creditors, which have registered with the
competent authorities.
10.14 The Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India
(ICAI) has opined that the Accounting Standards on Cash Flow Statement (AS-3), Segment
Reporting (AS-17) and Related Party Disclosures (AS-18) issued by the ICAI are applicable to
financial statements of Scheme of mutual funds. The Management of IDFC Asset
Management Company Limited (AMC) is of the view that mutual funds are governed by a self
contained regulatory framework, i.e. the SEBI Regulations, the Ninth and Eleventh Schedules
1
Annual Report - 2010 - 11
Schedules to the financial statements (Continued)
for the period from April 1, 2010 to April 7, 2010
(Currency: Indian Rupees)
of which lay down the specific Accounting Policies and Standards to be adopted and the
disclosures to be made. Accordingly, the financial statements have been prepared on the basis
of the SEBI Regulations.
10.15 Prior year comparatives
The prior period comprises of period beginning from April 1, 2010 to April 7, 2010, hence the
prior period figures are strictly not comparable with the current period. The figures of the
previous period have been regrouped and reclassified wherever necessary.
For IDFC Asset Management Company For IDFC AMC Trustee Company
Limited Limited
Naval Bir Kumar
President & CEO Director
Director Director
Kenneth Andrade Head-Investments
Anupam Joshi Fund Manager
Mumbai, 21st July, 2011
1
Annual Report - 2010 - 11
Annexure B
Portfolio holding (market / fair value)as at April 07, 2010
Amount (Rs)
% to Category
Total
Commercial Paper 49,634,414 100.00
Finance
LIC Housing Finance Ltd. 49,634,414
Total 49,634,414 100.00
Certificates of Deposits
Banks 149,397,438 100.00
Federal Bank Ltd. 49,799,597
Oriental Bank of Commerce 49,778,087
United Bank of India 49,819,754
Total 149,397,438 100.00
Collateralised Borrowing and Lending
Obligations(CBLO) 13,000,944 100.00
CBLO 13,000,944
Total 13,000,944 100.00
TOTAL INVESTMENTS 212,032,796
Note 1 : All investments are in non traded / thinly traded securities
GFMP-9
April 07, 2010
1
Annual Report - 2010 - 11
IDFC FIXED MATURITY PLAN - NINETEEN MONTH SERIES-1
Balance Sheet as at May 6, 2010
(Currency: Indian Rupees)
Schedule May 6, 2010 March 31, 2010
LIABILITIES
Unit capital 3 184,739,967 184,739,967
Reserves and surplus 4 31,658,363 32,296,437
Current liabilities and provisions 5 2,083,884 996,191
218,482,214 218,032,595
ASSETS
Investments 6 218,020,606 212,014,986
Current assets 7 461,608 6,017,609
218,482,214 218,032,595
- -
Net Asset Value per unit
Growth Option Plan-A 11.8183 11.7438
Dividend Option Plan-A 10.0000 11.7436
Significant accounting policies 2
Notes to financial statements 10
The schedules referred to above form an integral part of the Balance Sheet.
In terms of our report attached.
For Deloitte Haskins & Sells For IDFC Asset Management For IDFC AMC Trustee
Chartered Accountants Company Limited Company Limited
Z. F. Billimoria Naval Bir Kumar Director
Partner President & CEO
Director Director
Kenneth Andrade
Head - Investments
Mumbai, 21st July, 2011 Anupam Joshi
Fund Manager
1
Annual Report - 2010 - 11
IDFC FIXED MATURITY PLAN - NINETEEN MONTH SERIES-1
Revenue Account
for the period/year from April 1, 2010 to May 6, 2010
(Currency: Indian Rupees)
April 1, 2010 to April 1, 2009 to
May 6, 2010 March 31, 2010
Schedule
INCOME AND GAINS
Interest and discount 8 1,554,026 17,590,970
Profit on sale/redemption of investments (other than inter-scheme transfer/sale of investments) - 1,450,456
Profit on inter-scheme transfer/sale of investments 7,603,527 -
Load collected credited back to the Scheme 81,748 11,663
9,239,301 19,053,089
EXPENSES AND LOSSES
Investment management and advisory fees 182,402 1,771,633
Service tax on investment management and advisory fees 18,787 182,478
Registrar fees 3,197 66,180
Custodian fees 3,313 32,564
Audit fees - 55,150
Other operating expenses 9 6,925 767
214,624 2,108,772
Surplus for the period/year 9,024,677 16,944,317
Distributable surplus 9,024,677 16,944,317
Income distributed ( including distribution tax) (1,932,994) -
Retained surplus, beginning of the period/year 25,128,516 8,184,199
Retained surplus, end of the period/year 32,220,199 25,128,516
Significant accounting policies 2
Notes to financial statements 10
The sche