Fort House, 221, D. N. Road, Mumbai 400 001. Tel.:(022 ... Sons Ltd. Bombay House, 24, Homi Modi...

Tata Sons Ltd.Bombay House, 24, Homi Modi Street,Mumbai - 400 001.

Tata Investment Corporation Ltd.

Ewart House, 22, Homi Modi Street, Mumbai - 400 001.

TD Bank Financial Group

100 Wall Street,New York, NY 10005.

Tata TD Trustee Co. Pvt. Ltd. Mulla House, 51, M.G. Road,Mumbai - 400 001.

Tata TD Asset Management Pvt. Ltd.Mulla House, 51, M.G. Road,Mumbai - 400 001.

ABN AMRO Bank N. V.71/72, Sakhar Bhawan,7th Floor, Nariman Point,Mumbai - 400 021.

Computer Age ManagementServices (P) Ltd. (Cams)A&B, Lakshmi Bhavan,609, Anna Salai,Chennai - 600 006

Fort House, 221, D. N. Road, Mumbai 400 001.

Tel.:(022) 56578282 Fax: (022) 22613782 Website : www.tatamutualfund.com

Email:[email protected]

TATA TAX SAVING FUND

1

Item Table of Contents PageNo.

I. HIGHLIGHTS 2

II. DEFINITIONS 2

III. RISK FACTORS 4

IV. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY 6

V. EXPENSES 7

VI. CONDENSED FINANCIAL INFORMATION 9

VII. CONSTITUTION OF TATA MUTUAL FUND 15

i. Constitution: 15

ii. The Sponsors: 15

iii. The Trustee Company 15

VIII. INVESTMENT OBJECTIVE AND POLICIES 18

i. Investment objective, investment strategy andrisk management: 18

ii. Investment Pattern and Risk Profile 19

iii. Trading in Derivatives 19

iv. Change in Investment Pattern 21

v. Investment by the Fund and the AssetManagement Company 21

vi. Restrictions on Investments 22

vii. Securities Lending by the Mutual Fund 22

viii. Underwriting by the Scheme 23

ix. Portfolio Turnover 23

x. Fundamental Attributes 23

IX. MANAGEMENT OF THE FUND 24

i. The Asset Management Company 24

ii. Key Employees of the AMC andrelevant experience 26

iii. The Custodian 28

iv. The Registrar 28

v. The Auditor 28

vi. Bankers 28

vii. List of Authorised Investor Service Centres 28

X. UNITS & OFFER 29

i. Offer of Units 29

ii. Minimum Application 29

iii. Refund 29

iv. Despatch of Account Statement andUnit Certificates 29

v. Listing, Transfer & Pledge of Units 29

vi. Nomination Facility 29

vii. Applications with Additional Holders 29

viii. Appointment of Beneficiary 30

ix. Systematic Investment Plan (SIP) 30

x. Duration of the Scheme 30

xi. Winding Up 30

xii. Procedure for Winding Up 30

Item Table of Contents PageNo.

XI. SALE OF UNITS BEING OFFERED 31

i. Application Details: 31

ii. Procedure for application 31

iii. General Instructions 32

XII. DIVIDENDS & DISTRIBUTIONS 33

XIII. INTER SCHEME TRANSFER 33

XIV. ASSOCIATE TRANSACTIONS 34

i. Computation & Determination ofNet Asset Value 41

ii. NAV Information 41

iii. Valuation of Assets 41

XVII. REPURCHASE, RESALE & SWITCH OF UNITS 44

i. Relevant NAV for Repurchase, Resale &Switch of Units 44

ii. Repurchase of Units of Tata Tax Saving Fund 44

iii. Possible deferral of repurchase requests andcompulsory repurchase 44

iv. Spread between Sale and Repurchase Price 45

v. Sale of Units of Tata Tax Saving Fund on anongoing basis 45

vi. Switch of Units within the Funds / Schemes /Plans of Tata Mutual Fund 45

vii. Suspension of ongoing Sale, Repurchase orSwitch of Units 45

viii. Centres where repurchase/resale/switch requests 45

ix. Unclaimed Redemption/Dividend Amount 46

XVIII. ACCOUNTING POLICIES 46

Accounts and Audit 46

XIX. TAX TREATMENT OF INVESTMENTS INMUTUAL FUNDS 46

i. TAX BENEFITS TO THE MUTUAL FUND 46

ii. TAX BENEFITS TO THE UNITHOLDERS 47

iii. Capital Gains Tax 47

XX. INVESTORS’ RIGHTS & SERVICES 48

i. Rights 48

ii. Services 49

iii. Information regarding the Scheme 49

iv. Meeting and consent of Unitholders 49

v. Benefits to the Unitholders 50

vi. Documents available for inspection 50

XXI. INVESTOR GRIEVANCESREDRESSAL MECHANISM 50

XXII. PENALTIES PENDING LITIGATION ORPROCEEDINGS, FINDINGS OF INSPECTIONS ORINVESTIGATIONS FOR WHICH ACTION MAYHAVE BEEN TAKEN OR IS IN THE PROCESSOF BEING TAKEN BY ANY REGULATORYAUTHORITY 50


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I. HIGHLIGHTS

Mutual Fund - sponsored by Tata Sons Limited (TSL) and TataInvestment Corporation Limited (TICL).

The Scheme is managed by Tata Asset Management Limited(TAML).

Investment made in the Scheme will qualify for deductionfrom Gross Total Income upto Rs. 1,00,000/- (along withother prescribed investment) for amounts invested in anyunits of a mutual fund notified under section 10(23D) of theIncome Tax Act, 1961.

Minimum Application :

Rs. 500/- and in multiple of Rs. 500/- thereafter.

For additional purchase it shall be Rs. 500/- and in multipleof Rs. 500/- thereafter.

Transparency of operations : Determination of Net Asset Value(NAV) on all business days.

Investments in the Scheme are exempt from Wealth Tax underthe prevailing direct tax laws.

Repurchase/ Switch of Units at NAV related price anytime afterthe expiry of lock-in-period.

Earnings from the Fund totally exempt from income tax underSection 10 (23D) of the Income Tax Act, 1961.

No tax deduction at source on redemption amounts for ResidentInvestors.

II. DEFINITIONS

1 “Business Day” Any day on which the Mumbai Head Office of Tata Asset Management Limited is open forbusiness purposes and the Banks in Mumbai/RBI clearing is functional.

2 “Business Hours” Business hours are from 10.00 A.M. to 3.00 P.M. on any Business Day.

3 “Calendar Year” A Calendar Year shall be 12 full English Calendar months commencing from 1st January andending on 31st December.

4 “Day” Any day as per English Calendar viz. 365 days in a year.

5 “Financial Year” A Financial Year shall be 12 full English Calendar months commencing from 1st April andending on 31st March.

6 “Group” As defined in sub-clause (ef) of clause 2 of MRTP Act, 1961.

7 “HDFC Bank Limited“ HDFC Bank Limited, a bank incorporated in Mumbai with limited liability and includes itsor “Custodian” its successors.

8 “IMA” Investment Management Agreement dated 9th May, 1995, as amended from timeto time, between the TTCPL & TAML.

9 “Investor” An investor means any resident or non-resident person whether individual or not (legalentity), who is eligible to subscribe units under the laws of his/her/their country of incorporation,establishment, citizenship, residence or domicile and under the Income Tax Act, 1961including amendments thereto from time to time and who has made an application forsubscribing units under the Scheme. Under normal circumstances, an Unitholder shall bedeemed to be the investor.

10 “Net Asset Value” or “NAV” (a) In case of winding up of the Fund:

In respect of an Unit, the amount that would be payable to the holder of that Unit on anydate if the fund were to be wound up and its assets distributed on that date (valuingassets and liabilities in accordance with the normal accounting policies of the Fund, butignoring net distributable income of the current financial year and winding up expenses).

(b) Daily for Ongoing Sale/Redemption/ Switch:

In respect of a Unit, the amount that would be payable by/to the investor / holder of thatUnit on any Valuation date by dividing the net assets of the Scheme by the number ofoutstanding Units on the Valuation date.

11 “Net Assets” Net Assets of the Scheme / Plan at any time shall be the value of the Fund’stotal assets less its liabilities taking into consideration the accruals and the provisions at thattime.

12 “Non- Resident” Any person who is not a resident as defined herein.

13 “Permissible Investments” Investments made on account of the Unitholders of the Scheme in securities and assets inaccordance with the SEBI Regulations.

14 “Portfolio” Portfolio at any time shall include all Permissible Investments and Cash.


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15 “Redemption / Resale Load” Amount collected to cover the cost of providing Redemption / distribution relatedservice to the Scheme on a continuous basis.

16 “Regulations” Regulations imply SEBI Regulations and the relevant rules and provisions of the Securitiesand Exchange Board of India (Depositories and participants) Regulations 1996, Public DebtAct 1944,the relevant notifications of the Government of India Ministry of Finance Departmentof Revenue, (Central Board of Direct Taxes), the Income Tax Act, 1961; Wealth Tax Act,1957, Gift Tax Act, 1958, Foreign Exchange Management Act, 1999 as amended from timeto time and shall also include any Circulars, Press Releases or Notifications that may beissued by SEBI or the Government of India or the Reserve Bank of India from time to time.

17 “Resident” A resident means any person resident in India under the Foreign ExchangeManagement Act, 1999 and under the Income Tax Act,1961, including amendmentsthereto from time to time.

18 “Scheme” The offer made by Tata Mutual Fund through this Offering Circular, viz., Tata Tax SavingFund.

19 “SEBI” The Securities & Exchange Board of India established under the Securities &Exchange Board of India Act, 1992.

20 “SEBI Regulations” The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amendedfrom time to time and shall also include any Mutual Fund Regulations, Circulars, Press Releases,or Notifications that may be issued by SEBI or the Government of India to regulate the activitiesand growth of Mutual funds.

21 “TAML” or “Asset Tata Asset Management Limited, the Asset Management Company(AMC), a company withinManagement Company” the meaning of the Companies Act, 1956 (1 of 1956) and includes its successors and permitted

assigns.

22 “TICL” Tata Investment Corporation Limited, a sponsor of the TMF and a shareholder of TAML,a company within the meaning of the Companies Act, 1913 and includes its successors andpermitted assigns.

23 “TMF” or “Fund” Tata Mutual Fund, a trust established under a Trust Deed dated 9th May, 1995, under theprovisions of The Indian Trusts Act, 1882, bearing SEBI registration No. MF/023/95/9.

24 “Total Assets” Total Assets of the Scheme at any time shall be the total value of the Schemes assetstaking into consideration the accruals.

25 “Trust Deed” The Trust Deed of the Mutual Fund dated 9th May, 1995, as amended from time to time,made between TSL and TICL as the settlors, and TTCPL as the Trustee.

26 “TSL” Tata Sons Limited, a sponsor of TMF and a shareholder of TAML, a company withinthe meaning of the Companies Act, 1913 and includes its successors and permitted assigns.

27 “TTCPL or Trustee Company” Tata Trustee Company Private Limited, a company within the meaning of the Companies Act,1956 and includes its successors and permitted assigns.

28 “Unitholder” An Unitholder means any resident or non-resident person whether individual or not (legalentity), who is eligible to subscribe to the Scheme and who has been allotted Units under theScheme based on a valid application.

29 “Units” The security representing the interests of the Unitholders in the Scheme. Each Unitrepresents one undivided share in the assets of the Scheme as evidenced by any letter/advice or any other statement / certificate / instrument issued by TMF.

30 “Year” A Year shall be 12 full English Calendar months.


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III. A. RISK FACTORS

Mutual Funds and securities investments are subject to marketrisks and there can be no assurance and no guarantee thatthe Scheme will achieve its objective.

As with any investment in stocks, shares and securities, theNAV of the Units under this Scheme can go up or down,depending on the factors and forces affecting the capitalmarkets.

Past performance of the previous Schemes, the Sponsors orits Group affiliates is not indicative of and does not guaranteethe future performance of the Scheme.

Tata Tax Saving Fund is only the name of the Scheme anddoes not in any manner indicate either the quality of theScheme, its future prospects or the returns. Investors thereforeare urged to study the terms of the Offer carefully and consulttheir Investment Advisor before they invest in the Scheme.

B. SCHEME SPECIFIC RISK FACTORS ANDSPECIAL CONSIDERATIONS

Liquidity and Settlement Risks

The liquidity of the Scheme’s investments may be inherentlyrestricted by trading volumes, transfer procedures and settlementperiods. From time to time, the Scheme will invest in certainsecurities of certain companies, industries, sectors, etc. based oncertain investment parameters as adopted internally by TAML. Whileat all times the Asset Management Company will endeavour thatexcessive holding/investment in certain securities of industries,sectors, etc. by the Scheme is avoided, the funds invested by theScheme in certain securities of industries, sectors, etc. may acquirea substantial portion of the Scheme’s investment portfolio andcollectively may constitute a risk associated with non-diversificationand thus could affect the value of investments. Reduced liquidity inthe secondary market may have an adverse impact on market priceand the Scheme’s ability to dispose of particular securities, whennecessary, to meet the Scheme’s liquidity needs or in response toa specific economic event or during restructuring of the Scheme’sinvestment portfolio. Furthermore, from time to time, the AssetManagement Company, the Custodian, the Registrar, any Associate,any Distributor, Dealer, any Company, Corporate Bodies, Trusts,any Retirement and Employee Benefit Funds or any Associate orotherwise, any scheme / mutual fund managed by the AssetManagement Company or by any other Asset ManagementCompany may invest in the Scheme. While at all times the TrusteeCompany and the Asset Management Company will endeavour thatexcessive holding of Units in the Scheme among a few Unitholdersis avoided, however, the funds invested by these aforesaid personsmay acquire a substantial portion of the Scheme’s outstanding Unitsand collectively may constitute a majority unitholder in the Scheme.Redemption of Units held by such persons may have an adverseimpact on the value of the Units of the Scheme because of thetiming of any such redemptions and this may impact the ability ofother Unitholders to redeem their respective Units.

Investment Risks

The value of, and income from, an investment in the Scheme candecrease as well as increase, depending on a variety of factorswhich may affect the values and income generated by the Scheme’sportfolio of securities. The returns of the Scheme’s investments arebased on the current yields of the securities, which may be affectedgenerally by factors affecting capital markets such as price andvolume, volatility in the stock markets, interest rates, currencyexchange rates, foreign investment, changes in Government andReserve Bank of India policy, taxation, political, economic or otherdevelopments, closure of the Stock Exchanges etc. Investors shouldunderstand that the investment pattern indicated, in line with

prevailing market conditions, is only a hypothetical example as allinvestments involve risk and there is no assurance that the Scheme’sinvestment objective will be attained or that the Scheme be in aposition to maintain the model percentage of investment patternparticularly under exceptional circumstances.

Different types of securities in which the scheme would invest inthe offer document carry different levels and types of risk.Accordingly the scheme’s risk may increase or decrease dependingupon its investment pattern. e.g corporate bonds carry a higheramount of risk than Government securities. Further even amongcorporate bonds, bonds which are AAA rated are comparatively lessrisky than bonds which are AA rated.

The Scheme will endeavour to invest in highly researched growth/value stocks with high dividen yield. However the growth associatedwith equities is generally high as also the erosion in the value of theinvestments/portfolio in the case of the capital markets passingthrough a bearish phase is a distinct possibility. The NAV of thescheme is largely dependent on the performance of the companiesand the sectors wherein the investment has been made.

The scheme may use techniques and instruments ( as disclosed inthe clause “portfolio turnover”) for efficient portfolio managementand to attempt to hedge or reduce the risk of such fluctuations.However these techniques and instruments if imperfectly used havethe risk of the scheme incurring losses due to mismatches particularlyin a volatile market. The Fund’s ability to use these techniques maybe limited by market conditions, regulatory limits and taxconsiderations (if any). The use of these techniques is dependenton the ability to predict movements in the prices of securities beinghedged and movements in interest rates. There exists an imperfectcorrelation between the hedging instruments and the securities ormarket sectors being hedged. Besides, the fact that skills neededto use these instruments are different from those needed to selectthe Fund’s / Scheme’s securities. There is a possible absence of aliquid market for any particular instrument at any particular timeeven though the futures and options may be bought and sold on anorganised exchange. The use of these techniques involves possibleimpediments to effective portfolio management or the ability to meetrepurchase / redemption requests or other short-term obligationsbecause of the percentage of the Scheme’s assets segregated tocover its obligations.

Risk Associated with Securitised DebtScheme may invest in domestic securitized debt such as assetbacked securities (ABS) or mortgage backed securities (MBS). AssetBacked Securities (ABS) are securitized debts where the underlyingassets are receivables arising from automobile loans, personal loans,loans against consumer durables, etc. Mortgage backed securities(MBS) are securitized debts where the underlying assets arereceivables arising from loans backed by mortgage of residential /commercial properties. ABS/MBS instruments reflect the undividedinterest in the underlying pool of assets and do not represent theobligation of the issuer of ABS/MBS or the originator of the underlyingreceivables. The ABS/MBS holders have a limited recourse to theextent of credit enhancement provided. If the delinquencies andcredit losses in the underlying pool exceed the credit enhancementprovided, ABS/MBS holders will suffer credit losses. ABS/MBS arealso normally exposed to a higher level of reinvestment risk ascompared to the normal corporate or sovereign debt. At present inIndian market, following types of loans are amortised :

Auto Loans (cars / commercial vehicles /two vehicles)

Residential Mortgages or Housing Loans

Consumer Durable Loans

Personal Loans


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The main risks pertaining to each of the asset classes above aredescribed below:

Auto Loans (cars / commercial vehicles /two vehicles)

The underlying assets (cars etc) are susceptible todepreciation in value whereas the loans are given at highloan to value ratios. Thus, after a few months, the value ofasset becomes lower than the loan outstanding. Theborrowers, therefore, may sometimes tend to default on loansand allow the vehicle to be repossessed.

These loans are also subject to model risk. ie if a particularautomobile model does not become popular, loans given forfinancing that model have a much higher likelihood of turningbad. In such cases, loss on sale of repossession vehicles ishigher than usual.

Commercial vehicle loans are susceptible to the cyclicalityin the economy. In a downturn in economy, freight rates dropleading to higher defaults in commercial vehicle loans.Further, the second hand prices of these vehicles also declinein such economic environment.

Housing Loans

Housing loans in India have shown very low default rateshistorically. However, in recent years, loans have been givenat high loan to value ratios and to a much younger borrowerclasses. The loans have not yet gone through the fulleconomic cycle and have not yet seen a period of decliningproperty prices. Thus the performance of these housing loansis yet to be tested and it need not conform to the historicalexperience of low default rates.

Consumer Durable Loans

The underlying security for such loans is easily transferablewithout the bank’s knowledge and hence repossession isdifficult.

The underlying security for such loans is also susceptible toquick depreciation in value. This gives the borrowers a highincentive to default.

Personal Loans

These are unsecured loans. In case of a default, the bankhas no security to fall back on.

The lender has no control over how the borrower has usedthe borrowed money.

Further, all the above categories of loans have the following commonrisks:

All the above loans are retail, relatively small value loans.There is a possibility that the borrower takes different loansusing the same income proof and thus the income is notsufficient to meet the debt service obligations of all theseloans.

In India, there is no ready database available regarding pastcredit record of borrowers. Thus, loans may be given toborrowers with poor credit record.

In retail loans, the risks due to frauds are high.

Securities Lending RisksIt may be noted that this activity would have the inherent probabilityof collateral value drastically falling in times of strong downwardmarket trends, rendering the value of collateral inadequate untilsuch time as that diminution in value is replenished by additionalsecurity. It is also possible that the borrowing party and/or theapproved intermediary may suddenly suffer severe business setbackand become unable to honour its commitments. This, along with asimultaneous fall in value of collateral would render potential lossto the Scheme. Besides, there is also be temporary illiquidity of the

securities that are lent out and the scheme will not be able to sellsuch lent out securities until they are returned.

Interest Rate Risk

As with debt instruments, changes in interest rate may affect theScheme’s net asset value. Generally the prices of instrumentsincrease as interest rates decline and decrease as interest ratesrise. Prices of long-term securities fluctuate more in response tosuch interest rate changes than short-term securities. Indian debtand government securities markets can be volatile leading to thepossibility of price movements up or down in fixed income securitiesand thereby to possible movements in the NAV.

Credit Risk

Credit risk or Default risk refers to the risk that an issuer of a fixedincome security may default (i.e. the issuer will be unable to maketimely principal and interest payments on the security). Because ofthis risk corporate debentures are sold at a higher yield above thoseoffered on Government Securities which are sovereign obligationsand free of credit risk. Normally, the value of a fixed income securitieswill fluctuate depending upon the changes in the perceived level ofcredit risk as well as any actual event of default. The greater thecredit risk, the greater the yield required for someone to becompensated for the increased risk.

Reinvestment Risk

This risk refers to the difference in the interest rate levels at whichcash flows received from the securities in the schemes arereinvested. The additional income from reinvestment is the “intereston interest” component. The risk is that the rate at which interimcash flows are reinvestment may be lower than that originallyassumed.

Risk Factors Concerning Floating Rate Debt Instruments AndFixed Rate Debt Instruments Swapped For Floating Rate Return

1. Basis Risk (Interest Rate Movement): During the life of floatingrate security or a swap the underlying benchmark index maybecome less active and may not capture the actual movementin interest rates or at times the benchmark may cease to exist.These type of events mayresult in loss of value in the portfolio.

2. Spread Risk: In a floating rate security the coupon is expressedin terms of a spread or mark up over the benchmark rate.However depending upon the market conditions the spreadsmay move adversely or favourably leading to fluctuation inNAV.

3. In case of downward movement of interest rates, floating ratedebt instruments will give a lower return than fixed rate debtinstruments.

Risks associated with Derivatives

Derivative products are specialised instruments that requireinvestment techniques and risk analysis different from thoseassociated with stocks and bonds. Derivatives require themaintenance of adequate controls to monitor the transactionsentered into, the ability to assess the risk that a derivative add tothe portfolio and the ability to forecast price of securities beinghedged and interest rate movements correctly. There is a possibilitythat a loss may be sustained by the portfolio as a result of thefailure of another party (usually referred to as the “counterparty”) tocomply with the terms of the derivatives contract. Other risks inusing derivatives include the risk of mis-pricing or improper valuationof derivatives and the inability of derivatives to correlate perfectlywith underlying assets, rates and indices.

Disclosure / Disclaimer

To the best of the knowledge and belief of the Directors of theTrustee Company, information contained in this Offering Circular isin accordance with the SEBI Regulations and facts and does notomit anything likely to have a material impact on the importance ofsuch information.


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Neither this Offering Circular nor the Units have been registered inany jurisdiction. The distribution of this Offering Circular in certainjurisdictions may be restricted or subject to registration requirementsand, accordingly, persons who come into possession of this OfferingCircular are required to inform themselves about, and to observe,any such restrictions. No persons receiving a copy of this OfferingCircular or any accompanying application form in any suchjurisdiction may treat this Offering Circular or such application formas constituting an invitation to them to subscribe for Units, nor shouldthey in any event use any such application form, unless in therelevant jurisdiction such an invitation could lawfully be made tothem and such application form could lawfully be used withoutcompliance with any registration or other legal requirements.Accordingly, this Offering Circular does not constitute an offer orsolicitation to anyone in any jurisdiction in which such offer orsolicitation is not lawful or in which the person making such offer orsolicitation is not qualified to do so or to anyone to whom it is unlawfulto make such offer or solicitation. It is the responsibility of anypersons in possession of this Offering Circular and any personswishing to apply for Units pursuant to this Offering Circular to informthemselves of, and to observe, all applicable laws and Regulationsof such relevant jurisdiction.

Prospective investors should review / study this Offering Circularcarefully and in its entirety and should not construe the contentshereof or regard the summaries contained herein as advice relatingto legal, taxation, or financial / investment matters and are advisedto consult their own professional advisor(s) as to the legal or anyother requirements or restrictions relating to the subscription, gifting,acquisition, holding, disposal (sale, transfer, switch or redemptionor conversion into money) of Units and to the treatment of income(if any), capitalisation, capital gains, any distribution, and other taxconsequences relevant to their subscription, acquisition, holding,capitalisation, disposal (sale, transfer, switch, redemption orconversion into money) of Units within their jurisdiction of nationality,residence, domicile etc. or under the laws of any jurisdiction to whichthey or any managed funds to be used to purchase/gift Units aresubject, and (also) to determine possible legal, tax, financial or otherconsequences of subscribing / gifting to, purchasing or holding Unitsbefore making an application for Units.

No person has been authorised to give any information or to makeany representations not confirmed in this Offering Circular inconnection with the Initial Offer / Subsequent Offer of Units, andany information or representations not contained herein must notbe relied upon as having been authorised by the Mutual Fund orthe Asset Management Company or the Trustee Company.Statements made in this Offering Circular are based on the law andpractice currently in force in India and are subject to change therein.Neither the delivery of this Offering Circular nor any sale madehereunder shall, under any circumstances, create any impressionthat the information herein continues to remain true and is correctas of any time subsequent to the date hereof.

Compulsory Winding Up

As per the SEBI circular no. SEBI/IMD/CIR No. 10/22701/03 dt.December 12, 2003 Open ended schemes/plan(s) already in exist-

ence would required to comply with the following conditions as soonas possible but not later than December 31, 2004:1) Each scheme and individual plan(s) under the schemes should

have a minimum of 20 investors and no single investor shouldaccount for more than 25% of the corpus of the scheme/plan(s).

2) In each subsequent calendar quarter thereafter, on an averagebasis, the schemes/plans should meet with both the conditionsi.e. a minimum of 20 investors and no single investor shouldaccount for more than 25% of the corpus of the scheme/plan(s),failing which the provisions of Regulation 39 (2) (c) of SEBI(Mutual Funds) Regulations, 1996 would become applicableautomatically without any reference from SEBI. Accordingly,schemes /plans shall be wound up by following the guidelineslaid down by SEBI.

The aforesaid Circular would be applicable at the Portfolio level.

Determining the breach of the 25% limit by an Investor – The averagenet assets of the scheme would be calculated daily and any breachof the 25% holding limit by an investor would be determined. At theend of the quarter, the average of daily holding by each such investoris computed to determine whether that investor has breached the25 % limit over the quarter. If there is a breach of limit by any investorover the quarter, a rebalancing period of one month would be allowedand thereafter the investor who is in breach of the rule shall begiven 15 days notice to redeem his exposure over the 25 % limit.Failure on the part of the said investor to redeem his exposure overthe 25 % limit within the aforesaid 15 days would lead to automaticredemption by the Mutual Fund on the applicable Net Asset Valueon the 15th day of the notice period.

IV. DUE DILIGENCE BY THE ASSET MANAGEMENTCOMPANY

The following Due Diligence Certificate has been submitted toSEBI:

It is confirmed that:

(i) the draft Offering Circular is in accordance with theSEBI(Mutual Funds)Regulations, 1996 and the guidelinesand directives issued by SEBI from time to time.

(ii) all legal requirements connected with the launching of theScheme as also the guidelines, instructions, etc. issuedby the Government and any other competent authority inthis behalf, have been duly complied with.

(iii) the disclosures made in the Offering Circular are true, fairand adequate to enable the investors to make a wellinformed decision regarding investment in the proposedscheme.

(iv) the intermediaries named in the Offering Circular areregistered with SEBI and till date, such registration is valid.

For Tata Asset Management Limited

Place: Mumbai Hormuz A. BulsaraDate: 1

st July, 2005 Chief Operating Officer


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V. EXPENSES

A) Unitholders Transactions Expenses (Load)

Type of Transactions Levy upto % ofrelevant NAV

Maximum sales load imposedon ongoing sales 7.00

Maximum Sales load on issueof units in lieu of dividends 7.00

Maximum Contingent deferred sales load 7.00

Maximum redemption / repurchase load 7.00

Maximum switchover load 7.00

As per the SEBI specified limits the repurchase price shall not belower than 93% of the NAV and the sale price shall not be higherthan 107% of the NAV and the difference between the repurchaseprice and sale price shall not exceed 7% of the sale price.

Current Load Structure (as a % of relevant NAV)On amount invested other than by way of a SystematicInvestment Plan :

Entry Load : For investment amount less than Rs.2 crore - 2.25%

For investment amount greater than or equal to Rs.2 crore - NIL

Exit Load : NIL

On amount invested by way of a Systematic Investment Plan:

Entry Load : NIL

Exit Load : If redeemed on or before expiry of 365 days -2.25% If redeemed after 365 days - NIL*

* Subject to lock-in as per the terms of the scheme.

No entry load will be charged on investment made by a Fund ofFund Scheme

The AMC reserves the right to change/modify entry/exit/switchoverload (including zero load), depending upon the circumstancesprevailing at any given time. However any change in the load structureshall be applicable on prospective investment only. The AMC maycharge an entry/exit load for switch of units one plan/option to anotherplan/option within the scheme(s) to and/or switch over load dependingupon the circumstances prevailing at any given time. The switchover

load may be different for different plans/options and the switchoverload may be different from the entry and /or exit load charged for saleand/or repurchasde units. The load charged could also be differentas regards the amount/tenor of investment, etc.

All loads including CDSC for each scheme shall be maintained in aseparate account and may be utilised towards meeting the sellingand distribution expenses. Any surplus in this account may be creditedto the scheme, whenever felt appropriate by the AMC.

B. Initial Issue expenses

Present Scheme

Tata Tax Saving Fund was launched on 20th December, 1995.

During the Initial Offer period i.e. from 20th December, 1995 to 31stMarch, 1996 the initial issue expenses were 6% of the resourcesraised. Thus for every Rs.10 invested, Rs.9.40 was available forinvestment by the scheme. The details are as under :

Name of the Scheme: Tata Tax Saving Fund

Description Estimated as per Actuals as perOffering Circular Audited Accounts

Rs. in % of Rs. in % of Crore Targeted Crore Resources

Amount Mobilised

Advertising & Marketing 1.45 0.29 2.25Commission to 2.75 0.26 1.99

(Borne by (Borne byAgents / Brokers AMC 0.05) AMC 0.38)Registrar’s Charges 0.70 0.01 0.04

(Borne by (Borne byAMC 0.01) AMC 0.08)

Printing & Dispatch 0.60 0.18 1.40Bank Charges 0.03 0.23Miscellaneous Expenses 0.50 0.01 0.08

(Borne by (Borne byAMC 0.13) AMC 1.00)

Total 6.00 0.78 6.00(Borne (Borneby AMC by AMC

0.19) 1.46)

Initial Issue Expenses for the past schemes

Total initial issue Initial issue expenses Initial issue expensesexpenses incurred borne by the scheme borne by AMC

Scheme % of amount Amount % of amount Amount % of amount Amountmobilised (Rs. In crores) mobilized (Rs. In crores) mobilised (Rs. In crores)

Tata Short Term Bond Fund 0.0044 0.0045 0.00 0.00 0.0044 0.0045

Tata Income Plus Fund 0.00498 0.1108 0.00498 0.1108 0.00 0.00

Tata Index Fund 0.25 0.02 0.00 0.00 0.25 0.02

Tata Fixed Horizon Fund 0.49 0.0025 0.00 0.00 0.49 0.0025

Tata Dynamic bond Fund 0.03 0.05 0.03 0.05 0.00 0.00

Tata Floating Rate Fund 0.03 0.05 0.03 0.05 0.00 0.00

Tata MIP Plus Fund 1.48 5.57 1.48 5.57 0.00 0.00

Tata Equity P/E Fund 2.72 2.79 2.72 2.79 0.00 0.00

Tata Dividend Yield Fund 1.11 4.49 1.11 4.49 0.00 0.00

Tata Infrastructure Fund 1.75 13.31 1.75 13.31 0.00 0.00

Tata Service Industries Fund 1.32 4.16 1.32 4.16 0.00 0.00

Tata Hixed Horizon Fund Series 1(Plan A) 0.00 0.00 0.00 0.00 0.00 0.00


8

C. Annual Scheme Recurring Expenses

The ongoing fees and expenses of operating the Scheme on anannual basis (including for the initial offering period) expressed asa percentage of the amount of the Scheme’s daily average net assetsare estimated to be as follows :

Annual Scheme Recurring Estimates (%)

Investment Management Fees 1.25Trustee Fees 0.05Custodian Expenses 0.18Registrar Expenses 0.20Marketing & Selling expenses(including agents commission) 0.57*Other operating expenses 0.25

Total 2.50

* (For other operating expenses refer to the detailed note in Item4 below):

1. Investment Management FeesInvestment Management fees charged by TAML shall be1.25% of the daily average net assets for net assets uptoRs. 100 crores and 1.00% of the daily average net assets onthe balance amount above Rs. 100 crores. This fee is inconformity with SEBI Regulations & shall be payable monthlyin arrears. TAML shall not charge any fees on its investmentin Units of the Funds/Schemes/Plans in TMF or any otherMutual Fund.

2. Trustee FeesThe Trustee Company shall be entitled to a fee of 0.05% ofthe daily average net assets of the corpus or a sum of Rs. 5lacs per annum, whichever is higher, payable annually inarrears or at such intervals as may be decided from time totime.

3. Custodian/Registrar Fees:For Custodian’s and the Registrar & Transfer Agent’s Fees,see clause(s) “The Custodian” and “The Registrar” in“Management of the Fund”.

4. Other Operating Expenses:According to Regulation 52 (4)(b) of SEBI (Mutual Funds)Regulations 1996, other operating expenses inter aliaincludes (and expressed as a percentage of the amount ofdaily net assets):

Estimates (%)

Brokerage & Transaction cost 0.10

Audit Fees 0.01

Bank Charges 0.03

Cost of providing account statement,redemption cheques / dividend warrants, etc. 0.05

Costs of statutory advertisements 0.06

Total 0.25

The above estimates of annual Scheme recurring expenses havebeen made in good faith as per the information available to theAsset Management Company and are subject to change as peractuals. The said estimates have been given to assist the Unitholderin understanding the various costs and expenses that an Unitholderin the Scheme will bear directly or indirectly. However, the annualtotal of all charges and expenses of Tata Mutual Fund, except forbrokerage, commission, stamp duties and other (transaction)expenses directly associated with the purchase, sale and registrationof transfer of TMF’s investment/securities and except for expensesassociated with the initial offer of Units of the Scheme, and exceptfor selling expenses which are directly met / set off against sale &redemption load (as stated in the clause on Unitholder TransactionExpenses) shall be subject to the following limits:

On the first Rs.100 Crores of the average daily net assets:2.50%

On the next Rs.300 Crores of the average daily net assets:2.25%

On the next Rs.300 Crores of the average daily net assets:2.00%

On the balance of the assets: 1.75%

The above is the maximum limit under Regulation 52 (6) of theSEBI (Mutual Funds) Regulations, 1996. The Fund will strive toreduce the level of these expenses so as to keep them well withinthe maximum limits allowed by SEBI and any expenditure in excessof the above limits shall be borne by Tata Asset Management Limitedand/or Tata Trustee Company Private Limited. Besides only thoseexpenses as given above under the clause “Annual SchemeRecurring Expenses” shall be charged to the Scheme.


9

VI. CONDENSED FINANCIAL INFORMATION

Brief Note on Schemes launched:

TMF has so far launched twenty three open-ended schemes andone closed ended scheme.Tata Balanced Fund (TBF) (formerlyknown as Tata Equity Growth Fund), is the maiden scheme of TataMutual Fund launched in August-September 1995. Tata YoungCitizens’ Fund (TYCF) initially close-ended Scheme and convertedinto an open ended scheme on 30th October 1998, also launched inthe same period was the first scheme structured by a private sectormutual fund exclusively for children with an added automatic benefitof Personal Accident Insurance Cover. Tata Tax Saving Fund (TTSF)initially a close ended Equity linked Savings Scheme for residentslaunched in December 1996 and converted into an open endedscheme on 1st April 1999 offers growth besides tax saving and aphased investment plan, for cash flow planning. Tata Select EquityFund (TSEF) launched in April-May 1996 was the first close endedScheme structured by a private sector Mutual fund for investmentsexclusively in the equity of core sector companies. Tata IncomeFund (TIF) launched in March - April 1997 offered assured semi-annual income of 15% per annum (for the first financial year) alongwith possible capital appreciation under Regular Income Option andaccumulated the earnings in the Scheme thus providing medium tolong term capital gains in the case of Appreciation Option. TataIncome Fund w.e.f. 27th April 2000 also offers Monthly Income andQuarterly Income options. The Monthly Income Option was hivedof as seperate scheme namely Tata Monthly Income Fund w.e.f.23rd December, 2002. Tata Twin Option Fund (TTOF) launched inMarch 1998 offered the Unitholder, the option to invest in equitiesof large cap companies and the balanced portfolio option whichinvests in both debt and equity. On 14th February 2000 BalancedPortfolio Option of Tata Twin Option Fund got merged with TataEquity Growth Fund and the Tata Equity Growth Fund was renamedas Tata Balanced Fund. while the equity option was renamed asTata Pure Equity Fund. Tata Liquid Fund launched in August 1998offered an ideal debt based (income and growth) investment forshort duration investors. Tata Life Sciences & Technology Fund asectoral fund investing in fast growing Life Science and TechnologySectors comprising of Engineering, Tele-communications, Space,Computers, Software, Pharmaceuticals, Information Technology,Electronics and Electricals, Agrochemicals, Fertilizers, Fast MovingConsumer Goods, and various other allied Industries, etc. waslaunched in June 1999. Tata Gilt Securities Fund, a fundpredominantly investing in securities issued by Central/ StateGovernment was launched in August 1999. This fund also offersquarterly income distribution and also growth options. Under TataLiquid Fund two short known-maturity plans were floated. Tata LiquidFund Serial Plan I was launched on 8.12.2000 and Tata Liquid FundSerial Plan II on 3.1.2001 and quarterly dividends were declaredunder these plans. On 8th August, 2002 Tata Short Term BondFund was launched. On 11th November, 2002 the Tata IncomePlus Fund was launched. Tata Fixed Horizon Fund was launched10th January, 2003,and Tata Index Fund on 20th February, 2003.On 29th March 2003 Tata Ind Tax Shield was converted into onopen ended scheme (with no ELSS benefits) and named Tata EquityOpportunities Fund, Tata Dynamic Bond Fund was launched on 1stSeptember, 2003, Tata Floating Rate Fund was launched on 12thDecember, 2003. Tata MIP Plus Fund was launched on 27th January2004. Tata Equity P/E Fund was launched on 17th May, 2004. On28th September 2004 Tata Dividend Yield was Launched, Tata

Infrastructure Fund was launched on 25th November, 2004, TataService Industries Fund was launched on 9th February, 2005, TataFixed Horizon Fund Series 1 (Plan A) was Launched on 21st March,2005. TMF has so far launched twenty three open-ended schemesand one closed ended scheme. Each Scheme offers specialinnovative benefits to Unitholders by way of Systematic InvestmentPlan, Systematic Withdrawal Plan, etc.

In November 2001, Tata Mutual Fund and Indian Bank Mutual Fundentered into an agreement for takeover of the following close ended,running schemes of Indian Bank Mutual Fund viz : Ind Shelter (PlanA&B), Ind Tax Shield (Plan A&B) and Ind Navratna. Subsequent tothe takeover the names of the schemes were changed to Tata IndShelter (Plan A&B), Tata Ind Tax Shield (Plan A&B) and Tata IndNavratna . The consideration and all direct expenses in this regardwere directly borne by the respective parties to the Agreement,and not debited to the Scheme accounts. An exit option at NAV,without load was provided to unitholders in view of change in theTrustee and the Asset Management Company, as well as certainmodifications in scheme attributes such as issue of AccountStatement instead of Unit Certificates, changing NAV relatedtransactions to prospective from the earlier principle of prior weekNAV, etc. Thereafter, with effect from 22nd November 2001, theTata Trustee Company Private Limited is the Trustee and Tata AssetManagement Ltd. is the Asset Management Company for thesefunds. Tata Ind Shelter Fund Plan A and B were redeemed on31.3.2002. On 29th March 2003 Tata Ind Tax Shield was madeopen ended and named Tata Equity Opportunities Fund. Tata IndNavratna was converted in to an open ended fund on 31st March,2004 and was named as Tata Growth Fund.

Date of allotment : TBF (8/10/95), TYCF (14/10/95), TTSF (1/4/96), TSEF (24/5/96), TIFR & TIFA (2/5/97), TIFQ and TIFM (27/4/2000), TPEF (7/5/98), TLSTF (18/6/99), TLFR (2/8/99) & TLFA (30/8/98), TGSFR & TGSFA (4/8/99) TLSP1 (8/12/2000), TLSP2 (3/1/2001), TSTBF (12/08/02), TIPF(2/12/02), (TIF) (4/03/03), TDBF (03/09/03), TFRF (22/12/03), TMPF (17/03/04), TEQPEF (29/6/04),TDYF(22/11/04), TISF(31/12/04), TFHFS1 (Plan A) (28/03/05),TSIF (05/04/05), TMCF (29/06/05).

TBF - Tata Balanced Fund, TYCF - Tata Young Citizens’ Fund,TTSF - Tata Tax Saving Fund, TSEF - Tata Select Equity Fund,TIFR - Tata Income Fund (Half-Yearly Income Option), TIFQ - TataIncome Fund (Quarterly Income Option), TIFM - Tata Income Fund(Monthly Income Option),TIFA - Tata Income Fund (AppreciationOption), TPEF - Tata Pure Equity Fund, TLSTF - Tata Life Sciences& Technology Fund, TLFR - Tata Liquid Fund (Regular IncomeOption), TLFA - Tata Liquid Fund (Appreciation), TGSFR - TataGilt Securities Fund (Regular Income Option), TGSFA - Tata GiltSecurities Fund (Appreciation Option), TSTBFR - Tata Short TermBond Fund (Regular Income), TSTBFA - Tata Short Term BondFund (Appreciation Option), TIPF(A) - Tata Income Plus Fund OptionA, TIPF(B) - Tata Income Plus Fund Option B, TFHF - Tata FixedHorizon Fund, TMIF - Tata Monthly Income Fund, TIF - Tata IndexFund, TDBF - Tata Dynamic Bond Fund, TFRF - Tata Floating RateFund. TMPF - Tata MIP Plus Fund, TGF - Tata Growth Fund,TEQPEF- Tata Equity P/E Fund, TDYF - Tata Dividend Yield Fund,TISF - Tata Infrastructure Fund, TFHFS1 - Tata Fixed Horizon FundSeries 1 (Plan A), TSIF - Tata Service Industries Fund, TMCF -Tata Mid Cap Fund.


10

Condensed Financial Information for the schemes launched during the last three financial years.

Sr. Historical Per Unit Statistics TFHF A6 TTSFNo. 31/05/05 31/03/05 31/05/05 31/0305 31/03/04 31/03/03

1 NAV at the beginning D 10.0124 – 32.6946 23.9773 10.1430 11.1439of the year/period G 10.0124

2 Net Income per unit 0.10 0.01 1.04 18.52 8.18 (1.74)3 Dividends – 0.80 – – – –4 Transfer to reserves (if any) – – – – – –5 NAV at the end of the year D 10.1402 D 10.0124 34.8844 32.6946 23.9773 10.1430

G 10.1196 G 10.01246(a) Annualised Return (%) * G 1.20 G 0.12 26.55 26.19 24.98 13.426(b) Benchmark returns (%) * 0.88 0.04 7.82 7.57 6.54 (1.41)

Crisil Liquid Fund Index Crisil Balanced Fund Index7 Net Assets at the end of 224.31 221.94 55.69 52.41 43.68 23.46

the period (Rs. Crores)8 Ratio of Recurring Expenses 0.30 0.15 2.47 2.49 2.50 2.50

to Avg. Net Assets (%)

* Returns for period less than 1 year are absolute returns and for period more than 1 year are compounded annualised return (CAGR)

Sr. Historical Per Unit Statistics TEQPEF TSTBFNo. 31/05/05 31/03/05 31/05/05 31/03/05 31/03/04 31/03/03

1 NAV at the beginning D 13.0898 – D 10.7942 D 10.6401 D 10.5288 10.00of the year/period G 13.6684 – G 11.7267 G 11.1663 G 10.5462

2 Net Income per unit 0.87 1.95 0.04 1.84 1.6700 2.213 Dividends – 0.50 0.4081 0.8115 0.43974 Transfer to reserves (if any) – – – – – –5 NAV at the end of the year D 13.9756 D 13.0898 D 10.8774 D 10.7942 D-10.6401 R-10.53

G 14.5954 G 13.6684 G 11.8872 G 11.7267 G-11.1663 G-10.556(a) Annualised return (%) * G 45.95 G 36.69 G 6.34 G- 6.20 G-6.93 G 5.466(b) Benchmark returns (%) * 38.70 34.11 4.93 4.93 6.09 6.71

BSE SENSEX Crisil Short Term Bond Fund7 Net Assets at the end of 106.91 102.82 20.11 13.60 93.85 60.56

the period (Rs. Crores)8 Ratio of Recurring Expenses 2.47 1.77 0.85 0.82 0.90 0.90

to Avg. Net Assets (%)

* Returns for period less than 1 year are absolute returns and for period more than one year are compounded annualised return (CAGR)

Sr. Historical Per Unit Statistics TMPF TDBFNo. 31/05/05 31/03/05 31/03/04 31/05/05 31/03/05 31/03/041 NAV at the beginning DM 10.1555 DM 10.0404 – RD 10.1381 RD 10.1267 –

of the year/period DQ 10.1435 DQ 10.0403 – RG 10.6672 RG 10.4235 –DS 10.0776 DS 10.0404 – HD 10.1473 HD 10.1411 –GR 10.3983 GR 10.0404 – HG 10.6860 HG 10.4402 –

2 Net Income per unit 0.32 0.51 0.0371 0.13 1.28 1.273 Dividends DM 0.0765 DM 0.2411 0.0000 – RD 0.1229 0.0715

DQ 0.2537 HD 0.1229 0.2306DS 0.1003

4 Transfer to reserves (if any) – – – – – –5 NAV at the end of the year DM 10.2987 DM 10.1555 10.0404 RD 10.1381 RD 10.1381 10.1267

DQ 10.3640 DQ 10.1435 10.0403 RG 10.6672 RG 10.6672 10.4235DS 10.2967 DS 10.0776 10.0404 HD 10.1473 HD 10.1473 10.1411GR 10.6244 GR 10.3983 10.0404 HG 10.6860 HG 10.6860 10.4402

6(a) Annualised Return (%) * GR 5.15 GR 3.83 GR 0.40 RD 4.57 RG 4.17 RG 4.24HD 4.68 HG 4.30 HG 4.40

6(b) Benchmark returns (%) * 3.29 -2.85 0.58 2.20 2.19 3.74Crisil MIP Blended Index Crisil Composite Bond Fund

7 Net Assets at the end of 163.79 163.79 418.19 7.17 7.17 62.06the period (Rs. Crores)

8 Ratio of Recurring Expenses 1.98 1.89 1.97 1.25 1.25 1.25to Avg. Net Assets (%)



11

Sr. Historical Per Unit TFRSTF TIPFNo. Statistics 31/05/05 31/03/05 31/03/04 31/05/05 31/03/05 31/03/04 31/03/03

1 NAV at the beginning RD 10.0579 D 10.0053 10.0000 RID 10.1565 RID 10.1800 RID 10.2467 –of the year/period RG 10.6168 G 10.1185 RIA 11.2288 RIA 11.2564 RIA 10.2342 –

ID 10.0105 HID 10.1621 HID 10.1862 HID 10.2489 –IG 10.3015 HIA 11.2579 HIA 11.2864 HIA 10.2470 –

IID 10.5660IIA 11.3247

2 Net Income per unit 0.68 0.39 0.11 0.15 0.66 1.25 0.39

3 Dividends RIPWLY 0.0728 RIP WD 0.4166 0.0932 – – HID-0.9428 –IIPDD 0.0942 IIP DD 0.2853 RID-0.9428 –

IID-0.6609 –

4 Transfer to reserves (if any) – – – – – – –

5 NAV at the end of the year RD 10.0676 RD 10.0579 D- 10.0053 RID 10.2754 RD 10.1565 RID-10.1800 RIR-10.2466RG 10.7131 RG 10.6168 G- 10.1185 RIA 11.3636 RG 11.2288 RIA-11.2564 RIA-10.2342ID 10.0105 ID 10.0105 HID 10.3292 HD 10.1621 HID-10.1862 HIR-10.2489IG 10.3975 IG 10.3015 HIA11.3942 HG 11.2579 HIA-11.2864 HIA-10.2475

IID-10.5660 –IIA-11.3247 –

6(a)Annualised return (%) * 4.90 G 4.81 G- 1.19 RIA 5.13 RIA 4.98 RIA-8.91 RIR-2.47HIA 5.24 HIA 5.09 HIA-9.11 RIA-2.34

IIA-7.45 HIR-2.49HIA-2.47

6(b)Benchmark returns (%) * 4.22 4.14 1.24 RIA 5.04 RIA 5.10 RIA-8.79 3.28HIA 5.04 HIA 5.10 HIA-8.79

IIA-6.87

Crisil Liquid Fund Index Crisil Composite Bond Fund

7 Net Assets at the end of 1328.84 672.63 112.03 7.35 8.58 165.49 100.11the period (Rs. Crores)

8 Ratio of Recurring Expenses 0.68 0.65 0.75 1.50 1.49 1.36 1.50to Avg. Net Assets (%)

* Returns for period less than 1 year are absolute returns and for period more than 1 year are compounded annualised return (CAGR).

Sr. Historical Per Unit Statistics TIFN TIFSNo. 31/05/05 31/03/05 31/03/04 31/03/03 31/05/05 31/03/05 31/03/04 31/03/03

1 NAV at the beginning NA 11.7234 NA 10.1030 NA-9.2519 10.00 SA 17.1762 SA 14.4606 SA-9.2644 10.00of the year/period NB 16.6571 NB-9.2333 SB 17.0617 SB-9.2605

2 Net Income per unit 0.09 30.37 8.44 (0.01) 85.30 8.37 (0.03)

3 Dividends – – 6.00 – 0.07 – 2.50 –

4 Transfer to reserves (if any) – – 0.00 – – – – –

5 NAV at the end of the year NA 12.0421 NA 11.7234 NA-10.1030 NA-9.25 SA 17.6369 SA 17.1762 SA-14.4606 SA-9.27NB 0.0000 NB-16.6571 NB-9.23 SB 0.0000 SB-17.0617 SB-9.26

6(a)Annualised Return (%) * 34.50 NA 35.97 NA 57.13 NA (7.48) 37.67 SA 39.45 SA 61.43 SA (7.36)NB 59.29 NB (7.67) SB 62.82 SB-(7.40)

6(b)Benchmark returns (%) * 35.17 36.8 60.43 (7.33) 37.21 38.48 62.53 (7.11)

S&P NIFTY BSE SENSEX

7 Net Assets at the end of 0.86 0.96 29.70 6.55 0.33 0.28 2.46 10.62the period (Rs. Crores)

8 Ratio of Recurring Expenses 0.93 0.89 1.42 NA-1.50 0.90 0.87 0.84 SA-1.50to Avg. Net Assets (%) NB-0.75 SB-0.75



12

Sr. Historical Per TLFNo. Unit Statistics 31/05/05 31/03/05 31/03/04 31/03/03

1 NAV at the beginning RIPGR-1537.4450 RIPGR-14.7135 TLF-DIV-11.1256 R-11.06of the year/period RIPFN-122.1411 RIPFN-11.1415 GR-14.0270 G-13.13

RIPDD-1116.7808 RIPDD-11.1449 TLHIF-10.0527 HG-10.00HIPGR-1105.3854 HIPGR-10.5672HIPDD-1114.3008 HIPDD-11.1199

HIPWLY-1123.7048 HIPWLY-11.1556HIPMLY-1008.5241 HIPMLY-10.0407SHIPGR-1216.5547 SHIPGR-11.5948SHIPDD-1114.4904 SHIPDD-11.1200

SHIPWLY-1126.8847 SHIPMLY-11.1654SHIPMLY-1128.3585 SHIPWLY-11.1670

2 Net Income per unit 10.44 57.91 0.4300 0.96

3 Dividends RIPFN-7.8973 RIPFN-6.5654 RIPFN-0.4384 R-0.66RIPDD-9.4471 RIPDD-4.8667 RIPDD-0.3841HIPDD-9.5578 HIPDD-4.9839 HPDD-0.4088

HIPWLY-8.0354 HIPWLY-3.8035 HIPWLY-0.3475HIPMLY-7.4110 HIPMLY-3.6217 HIPMLY-0.3918

SHIPDD-10.0715 SHIPDD-5.3655 SHIPDD-0.4188SHIPWLY-8.2849 SHIPWLY-3.8988 SHIPWLY-0.3665SHIPMLY-8.1041 SHIPMLY-4.1538 SHIPMLY-0.3501

4 Transfer to reserves (if any) – – – –

5 NAV at the end of the year RIPGR-1550.5540 RIPGR-1537.4450 RIPGR-14.7135 R-11.13RIPFN-1125.8591 RIPFN-122.1411 RIPFN-11.1415 G-14.03RIPDD-1116.7898 RIPDD-1116.7808 RIPDD-11.1449 HG-10.05HIPGR-1114.9543 HIPGR-1105.3854 HIPGR-10.5672HIPDD-1114.3180 HIPDD-1114.3008 HIPDD-11.1199

HIPWLY-1125.3558 HIPWD-1123.7048 HIPWLY-11.1556HIPMLY-1009.7621 HIPMD-1008.5241 HIPMLY-10.0407SHIPGR-1227.6126 SHIPGR-1216.5547 SHIPGR-11.5948SHIPDD-1114.5025 SHIPDD-1114.4904 SHIPDD-11.1200

SHIPWLY-1128.8474 SHIPWD-1126.8847 SHIPWLY-11.1670SHIPMLY-1130.4593 SHIPMD-1128.3585 SHIPMLY-11.1654

6(a) Annualised return (%) * RIPGR 6.71 RIPGR 6.75 RIPGR 7.15 RIPGR 7.66HIPGR 4.93 HIPGR 4.90 HIPGR-5.14

SHIPGR 5.04 SHIPGR 4.99 SHIPGR-5.01

6(b) Benchmark returns (%) * RIPGR- NA RIPGR- NA RIPGR-NA NAHIPGR 4.33 HIPGR 4.29 HIPGR-4.40

SHIPGR 4.19 SHIPGR 4.14 SHIPGR-3.52

Crisil Liquid Fund Index

7 Net Assets at the end of 2693.19 2317.17 1129.48 125.21the period (Rs. Crores)

8 Ratio of Recurring Expenses 0.34 0.45 0.64 0.86to Avg. Net Assets (%)



13

Sr. Historical Per TFHF A1 TFHF A2 TFHF A3 TFHF A4No. Unit Statistics 31/05/05 31/03/05 31/05/05 31/03/05 31/05/05 31/03/05 31/05/05 31/03/05

1 NAV at the beginning D 10.3630 – G 10.3038 – G 10.2031 – G 10.1451 –of the year/period G 10.3446

2 Net Income per unit 0.02 0.45 (0.03) 0.49 0.03 0.22 0.05 0.18

3 Dividends – – – – – – – –

4 Transfer to reserves (if any) – – – – – – – –

5 NAV at the end of the year D 10.5034 D 10.3630 G 10.3494 G 10.3038 G 10.3978 G 10.2031 G 10.2499 G 10.1451G 10.4396 G 10.3446

6(a) Annualised Return (%) * 4.40 3.44 3.98 3.04 2.98 2.03 2.50 1.45

6(b) Benchmark returns (%) * 4.20 3.35 3.21 2.36 2.71 2.31 2.03 1.20

Crisil Short Term Bond Fund Index

7 Net Assets at the end of 83.96 83.19 286.59 285.33 287.92 115.45 171.71 339.91the period (Rs. Crores)

8 Ratio of Recurring Expenses 0.30 0.23 0.30 0.30 0.30 0.30 0.30 0.30to Avg. Net Assets (%)


Sr. Historical Per Unit Statistics TDYF TISF TFRLTFNo. 31/05/05 31/03/05 31/05/05 31/03/05 31/05/05 31/03/05 31/03/04

1 NAV at the beginning of D 10.5838 – D 10.6002 – D 10.0874 D 10.0038 10.0000the year/period G 10.9798 G 10.5940 G 10.4828 G 10.1015

2 Net Income per unit 0.72 0.87 0.99 0.25 0.06 0.26 0.06

3 Dividends – – – – 0.0263 0.2720 0.0804

4 Transfer to reserves (if any) – – – – – – –

5 NAV at the end of the year D 10.5838 D 10.5838 D 11.2323 D 10.6002 D 10.1219 D 10.0874 D 10.0038G 10.9798 G 10.9798 G 11.2257 G 10.5940 G 10.5458 G 10.4828 G 10.1015

6(a) Annualised return (%) * G 18.51 9.80 12.26 5.94 3.76 G 3.77 G 1.02

6(b) Benchmark returns (%) * 11.27 7.59 1.70 (1.66) 4.22 4.14 1.24

BSE SENSEX BSE SENSEX Crisil Liquid Fund Index



* Returns for period less than 1 year are absolute returns and for period more than one year are compounded annualised return (CAGR)


14

Sr. Historical Per Unit Statistics TGSF TGSMFNo. 31/05/05 31/03/05 31/03/04 31/03/03 31/05/05 31/03/05 31/03/04

1 NAV at the beginning ANNX GR-12.6063 GR-123782 GR-11.89 DIV- 10.0418 NA NAof the year/period GA-22.3430 GA-19.4883 GA-16.75 GR- 11.0216 NA NA

HG-10.002 Net Income per unit (0.16) (0.25) 9700 2.37 0.07 0.17 0.323 Dividends – RIP-0.3535 RIP-1.3411 1.26 – 0.1500 0.2674

HIP-0.3535 HIP-0.62474 Transfer to reserves (if any) – – – – – – –5 NAV at the end of the year ANNX ANNX ANNX GR-12.38 D 10.1017 DIV-10.0418 DIV-10.4290

GA-19.49 G 11.0873 GR-11.0216 GR-10.74676(a) Annualised Return (%) * ANNX HIP 2.26 RIP-19.23 G20.57 G 4.89 G 5.00 7.47

HIP-8.116(b) Benchmark returns (%) * ANNX HIP 3.63 RIP-NA N.A. G 4.97 G 5.29 11.12

I Sec Composite Index HIP-6.57




ANNX

TATA GILT SECURITIES FUND (Including Retirement Planning Series)

RIP - Gr HIP - Gr 2006 DIV 2006 GRW 2007 DIV 2007 GRW 2008 DIV 2008 GRW

Inception Date 3-Aug-99 3-Aug-99 6-Oct-03 4-Dec-03 9-Oct-03 15-Jan-04 31-Oct-03 21-Oct-03

NAV on Allotment 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000

NAV as on 31/3/05 21.4724 13.1573 9.7899 9.8974 9.7362 9.7363 9.8049 9.6795

Annualised Return (%) * 14.71 2.26 -1.42 -0.78 -1.79 -2.19 -1.38 -2.23

Benchmark Return (%) * NA 3.63 1.54 1.44 1.24 0.88 1.43 1.03

NAV as on 31/05/05 21.6072 13.2396 9.8555 9.9597 9.8042 9.7983 9.8692 9.7418

Annualised Return (%) * 14.37 2.40 -0.88 -0.40 -1.20 -1.47 -0.83 -1.61

Benchmark Return (%) * NA 3.41 1.51 1.64 1.24 0.93 1.41 1.05

2009 DIV 2009 GRW 2010 DIV 2010 GRW 2011 GRW 2013 DIV 2013 GRW

Inception Date 3-Feb-04 27-Nov-03 23-Mar-04 27-Oct-03 27-Nov-03 10-Dec-03 24-Nov-03

NAV on Allotment 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000

NAV as on 31/3/05 9.7557 9.8129 9.7899 9.8049 9.8150 9.9045 9.8193

Annualised Return (%) * -2.12 -1.40 -2.76 -1.37 -1.38 -0.73 -1.34

Benchmark Return (%) * 1.06 1.49 0.05 1.49 1.49 1.69 1.54

NAV as on 31/05/05 9.8276 9.8752 9.9026 9.8735 9.8794 9.9966 9.8281

Annualised Return (%) * -1.31 -0.83 -0.01 -0.80 -0.80 -0.02 -0.47

Benchmark Return (%) * 1.09 1.47 0.22 1.46 1.47 1.64 1.50

2014 GRW 2015 GRW 2016 GRW 2018 DIV 2025 DIV 2025 GRW

Inception Date 30-Jan-04 29-Dec-03 2-Jan-04 10-Dec-03 9-Oct-03 26-Dec-03

NAV on Allotment 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000

NAV as on 31/3/05 9.7763 9.7428 9.7237 9.9018 9.7093 9.7330

Annualised Return (%) * -1.92 -2.06 -2.23 -0.75 -1.98 -2.12

Benchmark Return (%) * 1.04 0.92 0.86 1.69 1.24 1.03

NAV as on 31/05/05 9.9127 9.8056 9.7856 9.9791 9.7706 9.7940

Annualised Return (%) * -0.66 -1.37 -1.53 -0.14 -1.40 -1.45

Benchmark Return (%) * 1.07 0.96 1.01 1.64 1.24 1.06


Data for Crisil Bond Fund Index, Crisil Liquid Fund index, Crisil Balanced Fund Index and Crisil MIP blended index were not available priorto 30th March, 2002.

No scheme of Tata Mutual Fund has resorted to borrowings during the last financial year i.e financial year 2004-2005.


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VII. CONSTITUTION OF TATA MUTUAL FUND

i. Constitution:

Tata Mutual Fund (TMF) has been constituted as a Trust inaccordance with the provisions of The Indian Trusts Act, 1882(2 of 1882) and is registered as a Trust under The IndianRegistration Act, 1908. TMF was registered with Securities &Exchange Board of India (SEBI) and commenced operationby launching its first scheme on 30th August 1995. Tata SonsLimited(TSL) and Tata Investment Corporation Ltd (TICL), arethe Sponsors and the Settlors and Tata Trustee CompanyPrivate Limited is the Trustee Company. The Trustee Companyhas appointed Tata Asset Management Limited (TAML) as theAsset Management Company. TSL and TICL have made anaggregate initial contribution of Rs.1 lac towards setting up ofTMF.

Share holding pattern of Tata Asset Management Ltd.(TAML) and Tata Trustee Company Pvt Ltd (TTCPL)

TAML TTCPL

Tata Sons Ltd 67.91% 50%

Tata Investment Corporation Ltd 32.09% 50%

ii. The Sponsors:Tata Sons Limited (TSL)

Tata Sons Ltd is the promoter and the principal holding company ofthe Tata Group. Established as a trading firm in 1868, it is today thepromoter of all key companies of the Tata Group and holds the bulkof the Group shareholding in listed companies such as India’s largestIT services company Tata Consultancy Services Ltd, Tata MotorsLtd, Tata Steel Ltd, Tata Power Ltd, Tata Infotech Ltd, and Tata TeaLtd, to name just a few. It is also a majority shareholder in unlistedcompanies such as Tata Asset Management Ltd, Tata AIG LifeInsurance Company Ltd, and Tata AIG General Insurance CompanyLtd in the financial services segment.

The Tata Group today accounts for 2.6% of the Indian economy andcontributes to 5% of the country’s exports. The Group presently enjoysthe highest market capitalization amongst all Indian business groups,with around 2 million shareholders. Tata Sons is also the owner ofthe Tata name and the Tata trademarks which are registered in Indiaand several other countries.

Financial performance of TSL(Rs. in crores)

2001-02 2002-03 2003-04

Total Income 4329.53 5158.87 6476.68

Profit after tax 863.29 816.84 1291.96

Preference Share Capital 54.44 31.25 16.10

Equity Share Capital 40.41 40.41 40.41

Free reserves 3301.53 3965.98 4981.50

Net worth 3341.94 4006.39 5021.91

Dividend on Preference Shares 5.44 4.09 2.00

Dividend on Ordinary Shares 121.24 131.35 242.49

Earnings per share (face valueRs.1000 per share) (Rs.) 21226 20107 31912

2. Tata Investment Corporation Limited(TICL)

Tata Investment Corporation Ltd. was promoted by Tata SonsLtd. in 1937, with the main objective of being an investmentcompany, and was initially called The Investment Corporationof India Ltd. It remained closely held till 1959, when it waslisted on the Bombay Stock Exchange. Over the years, TICLhas built up a portfolio of investments of quoted and unquotedsecurities of a book value of Rs. 455.01 crores as on 31st

March, 2004. Its realizable value of investment as on 31stMarch, 2004 was Rs. 1184.76 crores, spread over 238companies.

Financial performance of TICL :Last three financial years.

(Rs. in crores)

2001-02 2002-03 2003-04

Total Income 50.33 52.80 90.37

Profit after tax 43.97 45.82 80.56

Equity Share Capital 19.69 22.97 22.97

Free reserves 286.20 325.16 379.46

Net worth/Book 155.34 151.53 175.17Value per Share

Earnings per share 24.49 21.71 35.06

Dividend paid (%) 60.00 60.00 101.00

iii. The Trustee Company

Constitution

Tata Trustee Company Private Limited, through its Board ofDirectors, discharges the obligations as Trustee of TMF. The TrusteeCompany may, amend the terms of the offer of the Units, theterms of the Scheme and the terms of the Fund from time to time asper the provisions contained in SEBI Regulations. The TrusteeCompany is entitled to fees as stated in the clause on “TrusteeFee”. The Trustee Company has appointed TAML as the AssetManagement Company, HDFC Bank as the Custodian and CAMSas the Registrar and Transfer Agent, the details of which are givenin the Clause “Management of the Fund”.

Board of Tata Trustee Company Private Limited:

Mr. S. M. Datta (Director), Address: Peerless General Finance &Investment Company Limited, 11-A, Mittal Tower, ‘A’ wing, FirstFloor, Nariman Point, Mumbai 400 021. Status: IndependentOccupation: Industrialist, Other Directorships : Chairman CastrolIndia Limited, IL&FS Investment Managers Limited, Philips IndiaLimited, E. I. D. Parry (India) Limited, Director Zodiac ClothingCompany Limited, TIL Limited, Peerless General Finance &Investment Company Limited, BOC India Limited, Goodlass NerolacPaints Limited, M. Visvesvaraya Industrial Research & DevelopmentCentre, Transport Corporation of India Limited, Atul Limited, BhorukaPower Corporation Limited. Other Memberships : Chairman - IndianInstitute of Management, Bangalore, Chairman - Goa Institute ofManagement, Advisor - Army Group Insurance Fund, Trustee - IndiaBrand Equity Fund Trust, Member - Council of EU Chambers ofCommerce, Member – ACME, Chairman - SIES Institute ofManagement Studies, Director – Supervisory Board of the EicherGroup of Companies, Governor – Woodlands Hospital & MedicalResearch Centre Limited, Chairman of Governing Board: IndianInstitute of Health Management Research.

Mr. I. Hussain (Director), Address: Tata Sons Limited, BombayHouse, 24, Homi Mody Street, Mumbai 400 001. Status: Associate,Occupation: Industrialist, Other Directorships : Chairman VoltasLimited, Tata Finance Limited, Director Tata Sons Limited, TataIron & Steel Company Limited, Titan Industries Limited, Tata Inc.,Tata Teleservices Limited, Tata Industries Limited, The India GrowthFund Inc., Tata AIG Life Insurance Co. Limited, Tata AIG GeneralInsurance Co. Limited, Idea Cellular Limited, CMC Limited, VideshSanchar Nigam Limited, Tata Teleservices (Maharashtra) Limited,Speech & Software Technologies (India) Pvt. Limited, Space TVLimited, Tata Refractories Ltd.

Mr. J. N. Godrej (Director), Address: Godrej & Boyce ManufacturingCompany Limited, Pirojshanagar, Vikhroli, Mumbai - 400 079.Status: Independent, Occupation: Industrialist, Other


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Directorships : Chairman Geometric Software Solutions CompanyLimited, Chairman & Managing Director Godrej & BoyceManufacturing Company Limited, Director Godrej Properties &Investments Limited, Godrej Agrovet Limited, Godrej Sara LeeLimited, Godrej Foods Limited, Godrej Tea Limited, GodrejIndustries Limited, 3D PLMSoftware Solutions, Godrej ConsumerProducts Limited, Bajaj Auto Limited, Antrix Corporation Limited,Godrej Upstream Limited, Godrej Investments Private Limited,Lawkim Limited, Illinois Institute of Technology (India) PrivateLimited, Godrej (Singapore) Pte. Limited, Godrej (Malaysia) Sdn.Bhd., Godrej (Vietnam) Company Limited, Godrej & Khimji (MiddleEast) LLC, Muscat, Haldia Petrochemicals Limited, Breach CandyHospital Trust. Other Memberships : Past President & Member ofthe National Council - Confederation of Indian Industry, PastChairman of the Western Regional Council- Confederation of IndianIndustry, Past President & Member of the Executive Committee -Indian Machine Tool Manufacturers’ Association, Member of theGoverning Council - Central Manufacturing Technology Institute,Bangalore, Founder Member & Member of the Executive Council -Tool Gauge Manufacturers’ Association.

Dr. N. A. Kalyani (Director) Address: Shangrilla Gardens, B&CWings, 1st Floor, Bund Garden Road, Pune 411 001. Status:Independent, Occupation: Industrialist Other Directorships :Executive Chairman Kalyani Forge Limited, Chairman KalyaniSecurities Private Limited, Shakuntal Engineering & EquipmentsPrivate Limited, Kautilya Engineering & Manufacturing PrivateLimited, Gajanan Investment Private Limited, Aboli InvestmentPrivate Limited, Zendu Investment Private Limited, Uttara AgroPrivate Limited, Purva Agro Private Limited, Anuradha AgrotechPrivate Limited, Punarvasu Agro Private Limited, Vishakha AgroPrivate Limited, Kalyani Floritech Private Limited, Ashlesha AgroPrivate Limited, Uttarashadha Agro Private Limited, DhanishthaAgro Private Limited, Purvashadha Agro Private Limited, SaraswatiAgrotech Private Limited, Rohini Agrotech Private Limited, KalyaniAgro and Exports Private Limited, Bhadrapada Agro Private Limited,Jeshtha Agro Private Limited, Shattarka Agro Private Limited,Kalyani Horticulture Private Limited, Pushya Agro Private Limited,Bramhaputra Agrotech Private Limited, Jamuna Agrotech PrivateLimited, Chinab Agrotech Private Limited, Director: KineticEngineering Company Limited, Kirloskar Oil Engines Limited,Finolex Industries Limited, Finolex Cables Limited, SudarshanChemical Industries Limited, Hindustan Construction CompanyLimited, Dronacharya Investment and Trading Private Limited,Dandakarayanya Investment and Trading Private Limited,Hastinapur Investment and Trading Private Limited, CampanulaInvestment and Finance Private Limited, Cornflower Investment andFinance Private Limited, Other Memberships : Chairman – KalyaniInstitute of Scientific Research, Pune, Chairman – Kalyani MedicalFoundation, Pune, Chairman – Kalyani Institute of Poultry Research,Pune, Member - Executive Committee, Mahratta Chamber ofCommerce and Industries, Pune, Member - Executive Committee,Federation of Indian Chamber of Commerce and Industry.

Duties and Responsibilities of the Trustee Company(1) The trustees and the asset management company shall with

the prior approval of the Board enter into an investmentmanagement agreement.

(2) The investment management agreement shall contain suchclauses as are mentioned in the Fourth Schedule and such otherclauses as are necessary for the purpose of making investments.

(3) The trustees shall have a right to obtain from the assetmanagement company such information as is considerednecessary by the trustees.

(4) In carrying out his/her responsibilities as a member of the Boardof Trustee, each Trustee shall maintain an arms’ lengthrelationship with other companies, or institutions or financialintermediaries or any body corporate with which he may

associated in any transaction also involving the mutual fund.

(5) No Trustee shall participate in the meetings of the Board ofTrustee when any decisions for investments in which he/shemay be interested are taken.

(6) All the Trustee shall furnish to the Board of Trustee, particularsof interest which he/she, may have in any other company, orinstitution or financial intermediary or any corporate by virue ofhis/her position as director, partner or with which he/she maybe associated in any other capacity.

(7) The trustees shall ensure before the launch of any scheme thatthe asset management company has:-

(a) systems in place for its back office, dealing room andaccounting:

(b) appointed all key personnel including fund manager(s) forthe scheme(s) and submitted their bio-data which shall containthe educational qualifications, past experience in the securitiesmarket with the trustees, within 15 days of their appointment:

(c) appointed auditors to audit its accounts:

(d) appointed a compliance officer to comply with regulatoryrequirement and to redress investor grievances:

(e) appointed registrars and laid down parameters forsupervision:

(f) prepared a compliance manual and designed internalcontrol mechanisms including internal audit systems:

(g) specified norms for empanelment of brokers and marketingagents.

(8) The trustees shall ensure that an asset management companyhas been diligent in empanelling the brokers, in monitoringsecurities transactions with brokers and avoiding undueconcentration of business with any broker.

(9) The trustees shall ensure that the asset management companyhas not given any undue or unfair advantage to any associatesor dealt with any of the associates of the asset managementcompany in any manner detrimental to interest of the unitholders.

(10) The trustees shall ensure that the transactions entered into bythe asset management company are in accordance with theseregulations and the scheme.

(11) The trustees shall ensure that the asset management companyhas been managing the mutual fund schemes independently ofother activities and have taken adequate steps to ensure thatthe interest of investors of one scheme are not beingcompromised with those of any other scheme or of other activitiesof the asset management company.

(12) The trustees shall ensure that all the activities of the assetmanagement company are in accordance with the provisions ofthese regulations.

(13) Where the trustees have reason to believe that the conduct ofbusiness of the mutual fund is not in accordance with theseregulations and the scheme they shall forthwith take suchremedial steps as are necessary by them and shall immediatelyinform the Board of the violation and the action taken by them.

(14) Each trustee shall file the details of his transactions of dealing insecurities with the Trust on a quarterly basis.

(15) The trustees shall be accountable for, and be the custodian of,the funds and property of the respective schemes and shallhold the same in trust for the benefit of the unit holders inaccordance with these regulations and the provisions of trustdeed.

(16) The trustees shall take steps to ensure that the transactions ofthe mutual fund are in accordance with the provisions of thetrust deed.


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(17) The trustees shall be responsible for the calculation of anyincome due to be paid to the mutual fund and also of any incomereceived in the mutual fund for the holders of the units of anyscheme in accordance with these regulations and the trust deed.

(18A) The trustees shall obtain the consent of the unitholders -

(a) whenever required to do so by the Board in the interest ofthe unitholders: or

(b) whenever required to do so on the requisition made bythreefourths of the unit holders of any scheme: or

(c) when the majority of the trustees decide to wind up orprematurely redeem the units: or

(18B) The trustees shall ensure that no change in the fundamentalattributes of any scheme or the trust or fees and expensespayable or any other change which would modify the schemeand affects the interest of unitholders, shall be carried outunless:-

(i) a written communication about the proposed change issent to each unitholder and an advertisement is given inone English daily newspaper having nationwide circulationas well as in a newspaper published in the language of theregion where the Head Office of the mutual fund is situated;and

(ii) the unitholders are given an option to exit at the prevailingNet Asset Value without any exit load.”

(19) The trustees on a quarterly basis shall call for the details oftransactions in securities by the key personnel of the assetmanagement company in his own name or on behalf of theasset management company and shall report to the Board, asand when required.

Explanation:

To comply with the requirement of sub-regulation (1) of regulation 18of the SEBI (Mutual Funds) Regulations, 1996, the trustees shall callfor the details of transactions in securities by the key personnel ofthe asset management company in their own name or on behalf ofthe AMC on a six monthly basis.

(20) The trustees shall quarterly review all transactions carried outbetween the mutual funds, asset management company andits associates.

(21) The trustees shall quarterly review the networth of the assetmanagement company and in case of any shortfall, ensure thatthe asset management company make up for the shortfall asper clause (f) of sub-regulation (1) of regulation 21.

(22) The trustees shall periodically review all service contracts suchas custody arrangements, transfer agency of the securities andsatisfy itself that such contracts are executed in the interest ofthe unitholders.

(23) The trustees shall ensure that there is no conflict of interestbetween the manner of deployment of its networth by the assetmanagement company and the interest of the unitholders.

(24) The trustees shall periodically review the investor complaintsreceived and the redressal of the same by the asset managementcompany.

(25) The trustees shall abide by the Code of Conduct as specified inthe Fifth Schedule.

(26) The trustees shall furnish to the Board on a half yearly basis:-

(a) a report on the activities of the mutual fund covering thedetail as prescribed by SEBI.

(b) a certificate stating that the trustees have satisfiedthemselves that there have been no instances of self

dealing or front running by any of the trustees, directorsand key personnel of the asset management company:

(c) a certificate to the effect that the asset managementcompany has been managing the schemes independentlyof any other activities and incase any activities of the naturereferred to in sub-regulation (2) of regulation 24 have beenundertaken by the asset management company and hastaken adequate steps to ensure that the interest of theunitholders are protected.

(27) The independent trustees referred to in sub-regulation (5) ofregulation 16 shall give their comments on the report receivedfrom the asset management company regarding theinvestments by the mutual fund in the securities of groupcompanies of the sponsor.

(28) Trustees shall exercise due diligence as under:

A. General Due Diligence(i) the Trustees shall be discerning in the appointment of the

directors on the Board of the asset management company.

(ii) Trustees shall review the desirability of continuance of theasset management company if substantial irregularities areobserved in any of the schemes and shall not allow theasset management company to float new schemes.

(iii) The trustees shall ensure that the trust property is properlyprotected, held and administered by proper persons andby a proper number of such persons.

(iv) The trustee shall ensure that all service providers areholding appropriate registrations from the Board orconcerned regulatory authority.

(v) The trustees shall arrange for test checks of servicecontracts.

(vi) Trustees shall immediately report to the Board of anyspecial developments in the mutual fund.

B. Specific Due Diligence:

The Trustees shall:

(i) Obtain internal audit reports at regular intervals fromindependent auditors appointed by the Trustees.

(ii) Obtain compliance certificates at regular intervals from theasset management company

(iii) Hold meeting of trustees more frequently.

(iv) Consider the reports of the independent auditor andcompliance reports of asset management company at themeetings of trustees for appropriate action.

(v) Maintain records of the decisions of the Trustees at theirmeetings 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 companyof the deficiencies and checking on the rectification ofdeficiencies.

(29) Notwithstanding anything contained in sub-regulations (1) to (25),the trustees shall not be held liable for acts done in good faith ifthey have exercised adequate due diligence honestly.

(30) The independent directors of the trustees or asset managementcompany shall pay specific attention to the following, as may beapplicable, namely:

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


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(ii) Service contract with affiliates – whether the assetmanagement company has charged higher fees thanoutside contractors for the same services.

(iii) Selection of the asset management company’sindependent directors.

(iv) Securities transactions involving affiliates to the extent suchtransactions are permitted.

(v) Selecting and nominating individuals to fill independentdirectors vacancies.

(vi) Code of ethics must be designed to prevent fraudulent,deceptive or manipulative practices by insiders inconnection with personal securities transactions.

(vii) The reasonableness of fees paid to sponsors, assetmanagement company and any others for servicesprovided.

(viii) Principal underwriting contracts and their renewals.

(ix) Any service contract with the associates of the assetmanagement company.

(31) No amendments to the trust deed shall be carried outwithout the prior approval of the SEBI and unitholders’approval would be obtained where it affects the interests ofthe unitholders.

Supervision over TAML:

The Trustee Company monitors the activities of TAML on an ongoingbasis by having in place, a number of checks and balances and askingfor various reports besides periodic review of the various activities ofTAML. Specific amongst such systems is the periodic MIS reportingto be submitted by TAML at each Meeting of the Board of Directorsof the Trustee Company (held at least once every two months), whichincludes:

1. NAV calculations, movement of Net Assets and Valuation matrix/methodology.

2. Balance sheet and Revenue & Expenditure Accounts

3. Schemewise breakup of Industry Exposure in Equities/Securities.

4. Investments in Associate/Group Companies(alongwithjustification)

5. Investment in Corporates who have invested in the Scheme.

6. Companywise List of Investments

7. Broker-wise transactions.

Besides, the quarterly compliance reports which are submitted byTAML to SEBI are also placed before the Board of Directors of theTrustee Company and discussed. Reports of the independent Internalauditors(currently M/s C.C.Chokshi & Co., Chartered Accountants,Mafatlal Centre, Backbay Reclamation, Mumbai 400 020)are sentdirectly to the Chairman of the Trustee Company and also placedbefore the Audit Commitee of Directors, who seek explanation andclarifications from TAML on the points brought out in the report andthereafter report the same to the main Board. Periodic declarationsare taken from the staff and Directors of TAML and placed beforethe Board of Directors of the Trustee Company to peruse and toascertain that there have been no instances of self dealing or frontrunning. Meetings of the Board of Directors of the Trustee Companyare held (atleast) once every two months and atleast six suchmeetings shall be held in every year wherein atleast one independentDirector is required along with other Directors to form effectivequorum.

During the year ended May 2005 there were six Board Meetings ofthe Trustee Company.

Power to make rules:

The Trustee company may, from time to time, as per provisions ofSEBI Regulations (with the prior permission from the Unitholders incase of change of fundamental attributes in accordance with Clause15 of Regulation18 of the SEBI (Mutual Funds) Regulations, 1996and otherwise to be in conformity with the SEBI Regulations or toreflect the change in rules and regulations generally applicable tomutual funds or trusts), prescribe such forms and make such rulesfor the purpose of giving effect to the provisions of the Scheme, withthe power to the Trustee Company/Asset Management Company toadd to, alter or amend all or any of the forms and rules that may beframed from time to time.

The trustees shall ensure that no change in the fundamental attributesof any scheme or the trust or fees and expenses payable or anyother change which would modify the scheme and affect the interestsof unitholders, shall be carried out unless :-

(i) a written communication about the proposed change is sent toeach unitholder and an advertisement is given in one Englishdaily newspaper having nationwide circulation as well as in anewspaper published in the language of the region where theHead Office of the mutual fund is situated; and

(ii) the unitholders are given an option to exit at the prevailing NetAsset Value without any exit load.

Power to remove difficulties:If any difficulty arises in giving effect to the provisions of the Scheme,the Trustee Company may take such steps which are not inconsistentwith these provisions, which appear to them to be necessary orexpedient, for the purpose of removing the difficulties.

VIII. INVESTMENT OBJECTIVE AND POLICIES

i. Investment objective, investment strategy and riskmanagement:

The investment objective of the Scheme will be to provide medium tolong term capital gains along with income tax relief to its Unitholders,while at all times emphasising the importance of capital appreciation.The funds available under this Scheme will be invested primarily inequity capital, cumulative convertible preference capital, non votingcapital, warrants, debt securities convertible into or carrying the rightto acquire equity capital by both established as well as emerginggrowth companies. It is expected that atleast 80% of funds raisedunder this Scheme will be invested in equity and equity relatedinstruments. Investment may also be made in partly convertible issuesof debentures and bonds including those issued on right basis subjectto the condition that, as far as possible, the non-convertible portionof the debentures so acquired or subscribed, will be disinvested withintwelve months. In exceptional circumstances, this requirement maybe dispensed with by the trustee Company in order that interests ofthe Unitholders are protected. The balance upto 20% of the Scheme’sinvestment may be in debt securities such as non convertible portionof Convertible Debentures (Khokas), Non Convertible Debentures,Securitised Debt, Secured Premium Notes, Zero Interest Bonds, DeepDiscount Bonds, Floating Rates Bonds / Notes and Governmentsecurities and money market instruments like call Deposit, Commercialpaper certificate of Deposit, short tern Deposit, Treasury Bills andshort term debt instruments etc. issued by various Corporate,Government

• State or Central, Public Sector Undertakings. Such governmentsecurities may include securities which are:

• Supported by the ability to borrow from the Treasury:

• Supported only by Sovereign guarantee or of the StateGovernment; or

• Supported by Government of India / State Government in someother way.

This is for providing ongoing liquidity & preservation of capital in abear market.


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However the above weightages of debt & equity may be changed inexceptional circumstances, depending on market conditions, by takingapproval of the Trustee Company. The main aim of such steps willbe to protect the interest of the unitholders.

The above investment policies are conformity with the provisions ofvarious constitutional documents viz. MOA / AOA of the TAML /Trustee Company. IMA and the Trust Deed.

The Scheme will emphasise well managed, high quality companieswith above average growth prospects that can be purchased at areasonable price. Typically these companies will be highly competitive,with a large and growing market share. In the case of the smallercompanies they will generally hold a niche position in a rapidly growingsector of the economy. In many cases, this will involve the companyplaying a leading role in the development of new technologies andproducts. The Scheme will invest in those emerging growth companiesbelieved by the Asset Management Company to offer appreciationpotential greater than the growth in the relevant Stock Market indices.

Investment in fixed income securities (wherever possible will be mainlyin securities listed as investment grade by a recognised authority likeThe Credit Rating and Information Services of India Limited (CRISIL),Investment Information and Credit Rating Agency of India Limited(IICRA), Credit Analysis and Research Limited (CARE). In case ofInvestment in debt instrument that are not rated, specific approval ofthe Board will be taken.

The Scheme will purchase securities in the public offerings and rightsissues, as well as those traded in the secondary markets. Onoccasions, if deemed appropriate, the Scheme will invest in securitiessold directly by the issuer, or acquired in a negotiated transaction.The money collected under this scheme shall be invested only intransferable securities.

Around 10% of funds available under this Scheme may be investedin privately placed equities / debentures, securitised debt and otherunquoted equity / debt instruments. At no time would more than 1%of the total portfolio be invested in any single unlisted company. Thesesecurities of unlisted companies purchased by the Scheme wouldhave a clearly defined exit route either by way of Listing / Transfer toany entity other than the issuer except when on redemption (ifsecurities are acquired directly from the issuer).

For the possible impact on liquidity of the Scheme, which might beexperienced due to investment of around 10% in privately placeddebentures, securitised debt and other unquoted / equity debtinstruments, please refer to the clause “Possible Deferral ofRedemption / resale request & Compulsory redemption / repurchase”& also to the clause on “Liquidity & Settlement Risks” under Item III -Risk Factors. The money collected under this Scheme shall beinvested only in transferable securities in the money market or in thecapital market or in privately placed debentures or securitised debtsor in Government securities.

As per SEBI (Mutual Funds) Regulations 1996, the Fund shall notmake any investments in any un-listed securities of associate/groupcompanies of the Sponsors. The Fund will also not make investmentin privately placed securities issued by associate / group companiesof the Sponsors. The Fund may invest not more than 25% of thenet assets in listed securities of Group companies. The Schememay invest subscription money received from the investing publicbefore close of the Initial Offering Period and/or pending allotmentof Units, in money market instrument or in fixed deposits withschedule commercial banks as per SEBI Regulations. In addition,TAML on being satisfied or receipt of the minimum subscriptionamount can commence investment out of the funds received, inaccordance with the investment objective of the scheme. Incomeearned (net of expenses) during the period prior to the date ofallotment on units shall be merged with the income of the Schemeon completion of the allotment of the Units. In the event of nonreceipt of the minimum subscription amount, the Trustee Company

shall ensure that the entire amount collected as subscription moneyis refunded to the Unitholders notwithstanding any loss arising outof such investment during the interim period.

ii. Investment Pattern and Risk ProfileUnder normal circumstances, the total assets of the Scheme, shall(after providing for all (initial and) ongoing operational expenses)generally be invested / the indicative asset allocation shall be asfollows :

Proportion**% of funds available

Instrument Minimum Likely Maximum RiskUpto Around upto Profile

Equity & Equity Related – 80 100 High(Listed/Unlisted)

Debt & Debt Related – 10 20 Low to(Listed / Securitised) Medium

Debt & Debt Related – 5 10 Low to(Unlisted / Securitised) Medium

Money Market – 5 100* Sovereign

TOTAL 100

Investment by the scheme in securitised debt, will not normallyexceed 20% of the debt investment in the scheme.

** At the time of investment

The scheme net assets will have a maximum derivative net positionof 50% of the net assets of the scheme. Investment in derivativeinstruments may be done for hedging and Portfolio balancing.

If permitted by SEBI under extant regulations / guidelines, not morethan 25% of the net assets of the scheme shall be deployed insecurities lending. The Scheme would limit its exposure, with regardsto securities lending., for a single intermediary, to the extent of 5%of the total net assets of the scheme at the time of lending.

*The Trustee Company may from time to time for a short term periodunder exceptional circumstances on defensive consideration investupto 100% of the funds available in money market instruments, theprimary motive being to protect the Net Asset Value of the Schemeand protect unitholders interests as also to earn reasonable returnson liquid funds maintained for repurchase of units.

The Trustee Co. may from time to time for a short term period underexceptional circumstances on defensive consideration modify / alterthe investment pattern / asset allocation the intent being to protectthe Net Asset Value of the Scheme & Unitholders interests withoutseeking consent of the unitholders.

iii. Trading in DerivativesThe Fund may invest in derivatives instruments such as Futures,Options, Forward Rate Agreements (FRAs) & Interest Rate Swaps(IRS) or such other instruments as may be permitted under theregulations. The use of derivatives will only be done for hedgingand portfolio balancing in accordance with the SEBI (MutualFunds) Regulations and within the parameters approved by theTrustee Company. Example :In case of IRS the fund manager whohas a view that that the interest rates are expected to rise he wouldswap the fixed rate debt with floating rate debt instruments. Thereverse would be done that sell floating and buy fixed if theexpectations are there of interest rate coming down. In case of equitythe fund would trade in options and futures only for hedging andportfolio balancing. If the view is that the markets are expected torise then having cash in the scheme the fund manager would go longon the nifty futures or on individual script futures if on the other handthe fund is of the view that the equity markets are to fall having sharesin the portfolio would not be good for the investors then the fund


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manager would sell the nifty futures or any individual stock futures.Thus, as can be seen from the above example Derivatives is anactivity to be conducted with discretion, particularly to protect theinvestors interest, in a choppy market scenario. When the fundmanager is holding plain stock but is apprehensive of a market fall inprices of such stocks, he would use derivatives as above to ensureagainst a dramatic deterioration in NAV. Investors therefore wouldget the benefit of a protective shield in the event of sharp marketvolatility where it would be operationally unviable to buy / sell verylarge volumes in the cash market.

The Scheme may use techniques and instruments such as tradingin derivative instruments to hedge the risk of fluctuations in thevalue of the investment portfolio. A derivative is an instrument whosevalue is derived from the value of one or more of the underlyingassets which can be commodities, precious metals, bonds, currency,etc. Common examples of Derivative instruments are Interest RateSwaps, Forward Rate Agreements, Futures, Options, etc. TheScheme may write (sell) and purchase call and put options insecurities in which it invests and on securities indices based onsecurities in which the scheme invests. Through the purchase andsale of futures contracts and related options on those contracts theFund would seek to hedge against a decline in securities owned bythe Fund or an increase in the prices of securities which the Fundplans to purchase. The Fund would sell futures contracts onsecurities indices in anticipation of a fall in stock prices, to offset adecline in the value of its equity portfolio. When this type of hedgingis successful, the futures contract increase in value while the Fund’sinvestment portfolio declines in value and thereby keep the Fund’snet asset value from declining as much as it otherwise would.Similarly, when the Fund is not fully invested, and an increase inthe price of equities is expected, the Fund would purchase futurescontracts to gain rapid market exposure that may partially or entirelyoffset increase in the cost of the equity securities it intends topurchase.

Example 1. Hedging against an anticipated rise in equity prices

The scheme has a corpus of Rs.100 crores and has invested Rs.85crores in equity and still has a cash of Rs.15 crores available toinvest. The Fund may buy index futures of a value of Rs.15 crores.The scheme may reduce the exposure to the future contract bytaking an offsetting position as investments are made in the equitiesthe scheme wants to invest in. Here, if the market rises, the schemegains by having invested in the index futures.

Event Gain/(Loss) Gain/(Loss) Overall Gain/from from (Loss) toderivative cash market Schemeposition position

5% rise in 15 * 5% = 85 * 5% = Rs. 5 croresequity price Rs. 0.75 Crs Rs. 4.25 Crs

5% fall in 15 * 5% = 85 * 5% = (Rs. 5 crores)equity price (Rs. 0.75 Crs) (Rs. 4.25 Crs)

Example 2:- Hedging against anticipated fall in equity prices:-

If the Fund has a negative view on the market and would not like tosell stocks as the market might be weak, the scheme of the Fundcan go short on index futures. Later, the scheme can sell the stocksand unwind the future positions. A short position in the future wouldoffset the long position in the underlying stocks and this can curtailpotential loss in the portfolio.

For eg. the scheme has a corpus of Rs.100 crores and is fullyinvested in equities. If fund manager wishes to reduce the equityexposure to Rs. 80 crores in a short time, he would sell index futurecontracts of Rs. 20 crores.

Event Gain/(Loss) Gain/(Loss) Overall Gain/from from (Loss) toderivative cash market Schemeposition position

5% fall in 20 * 5% = 80 * 5% = (Rs. 3 crores)equity price Rs. 1 Crs (Rs. 4.00 Crs)

5% rise in 20 * 5% = 80 * 5% = Rs. 3 croresequity price (Rs. 1 Crs) Rs. 4 Crs

Example 3 : Use of IRS

Assuming the Scheme is having 10% of the portfolio in cash. Thefund manager has a view that the interest rate scenario is soft andcall rates are unlikely to spurt over the next three months. The fundmanager would therefore prefer to receive a higher rate of returnon his cash, which he is lending in the overnight call market. Inother words, he would like to move to a 91 days fixed interest ratefrom overnight floating rate.

1. Say Notional Amount : Rs. 2 crores

2. Benchmark : NSE MIBOR

3. Tenor : 91 Days

4. Fixed Rate : 10.25%

5. At the end of 91 days;

6. The Scheme pays : compounded call rates for 91 days is9.90%

7. TMF receives : Fixed rate at 10.25% for 91 days.

In practice, however the difference of the two amounts is settled.Here the Scheme receives Rs. 2,00,00,000 x 0.35% x91 / 365 =17,452. The players in IRS are scheduled commercial banks, primarydealers, corporate, mutual funds and All India Financial Institutions.

Forward Rate Agreements (FRA):

This is an agreement between two counterparties to pay or to receivethe difference between an agreed fixed rate (the FRA rate) and theinterest rate prevailing on a stipulated future date based on thenotional amount, for an agreed period.

The interest rate benchmarks that are commonly used for floatingrate in interest rate swaps are those on various Money MarketInstruments. In Indian markets, the benchmark most commonly usedis MIBOR.

Options and Futures

The Scheme(s) may write (sell) and purchase call and put options insecurities in which it invests and on securities indices based onsecurities in which the scheme invests. Through the purchase andsale of futures contracts and related options on those contracts theFund would seek to hedge against a decline in securities owned bythe Fund or an increase in the prices of securities which the Fundplans to purchase. The Fund would sell futures contracts on securitiesindices in anticipation of a fall in stock prices, to offset a decline inthe value of its equity portfolio. When this type of hedging issuccessful, the futures contract increase in value while the Fund’sinvestment portfolio declines in value and thereby keep the Fund’snet asset value from declining as much as it otherwise would.Similarly, when the Fund is not fully invested, and an increase in theprice of equities is expected, the Fund would purchase futurescontracts to gain rapid market exposure that may partially or entirelyoffset increase in the cost of the equity securities it intends to purchase.An interest rate swap agreement (as per guidelines issued by RBI onJuly 7, 1999 and November 1, 1999) from fixed rate to floating ratewill be an effective hedge for portfolio in a rising interest rateenvironment.


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Note : The per scrip limit disclosed above is as a % of theholding in the scrip and not as a % of the portfolio of theScheme.

Risks associated with DerivativesDerivative products are specialised instruments that requireinvestment techniques and risk analysis different from thoseassociated with stocks and bonds. Derivatives require themaintenance of adequate controls to monitor the transactions enteredinto, the ability to assess the risk that a derivative adds to the portfolioand the ability to forecast price of interest rate movements correctly.There is a possibility that a loss may be sustained by the portfolio asa result of the failure of another party (usually referred to as the“counterparty”) to comply with the terms of the derivatives contract.Other risks in using derivatives include the risk of mis-pricing orimproper valuation of derivatives and the inability of derivatives tocorrelate perfectly with underlying assets, rates and indices. Also,the market for derivative instruments is nascent in India.

iv. Change in Investment PatternThe Investment Pattern as outlined above is indicative keeping inview the investment objective of the scheme. The Trustee Companymay from time to time modify the investment strategy and patternprovided such modification is in accordance with the Scheme objectiveand Regulations and as amended from time to time including by way

of Circulars, Press Releases, or Notifications issued by SEBI or theGovernment of India to regulate the activities and growth of MutualFunds, the intent being to protect the Net Asset Value of the Schemeand Unitholders’ interests.

The asset allocation pattern may be modified in the interest ofinvestors and to protect the NAV of the Schemes, however, the samewill be reviewed by the trustee on a quarterly basis and will berebalanced to its normal position in a time frame as permitted by thetrustee. However, the AMC will endeavour to achieve a normal assetallocation pattern in a maximum period of 6 months.

v. Investment by the Fund and the Asset ManagementCompany

The Scheme may invest in another Scheme under the managementof TAML or of any other Asset Management Company. The aggregateInterscheme investment by TMF under all its Schemes, other thanfund of fund schemes, taken together, in another Scheme managedby TAML or in any other Scheme of any other Mutual Fund, shall notbe more than 5% of the net asset value of the Fund. TAML may, on anongoing basis invest, in Units of the Funds / Schemes / Plans in TMF(the existing Funds / Schemes / Plans including the present Schemeand others from time to time). TAML shall not charge any fees on theinvestment by the Scheme in another Scheme under the managementof TAML or of any other Asset Management Company and also on its(TAML’s) own investment in Units of the Funds / Schemes / Plans inTMF.

Exposure to DerivativesThe Scheme will have a maximum derivative net position of 50% of the portfolio (i.e net assets) of the scheme. The limits on equityderivatives exposure per scrip / instruments and derivative positions are given below :

Sr. Derivative Action Description Limit

1 Index futures Buy Buy futures against cash to protect To the extent of cash / equivalents in the portfolio.against rising market Max limit (50%) of portfolio

2 Index futures Sell Hedging of portfolio against expected Up to (100%) of equity portion of the scheme or (50%)market downturn of the net assets of the scheme whichever is lower

3 Index futures - Call Buy Buy index calls against cash (existing / To the extent of cash/equivalents in the portfolio.expected to protect against rising market Max. limit (50%) of portfolio

4 Index Options - Call Sell Covered Call Sale-against existing Up to (100%) of equity portion of the scheme or (50%)

portfolio of the net assets of the scheme whichever is lower

5 Index Options - Put Buy Buy index puts to hedge existing Up to (100%) of equity portion of the scheme or (50%)

portfolio of the net assets of the scheme whichever is lower

6 Index Options - Put Sell Covered Put Sale-Possible top sell index To the extent of cash/equivalents in the portfolio.puts against existing / expected cash Max. limit (50%) of portfolio

7 Stock futures Buy Buy against cash to protect against To the extent of cash/equivalents in the portfolio.rising share prices Max. limit (50%) of portfolio; per scrip limit (10%) of

the net assets of the scheme

8 Stock futures Sell Sell against existing stock - Hedging To the extent of the particular scrip holding in theagainst downside on existing stock in portfolio; Max. limit (50%) of portfolio; per scrip limitthe face of expected volatility in the stock (100%) of the holdingprice

9 Stock options - Call Buy Buy against cash to protect against To the extent of cash/equivalents in the portfolio.rising share prices Max. limit (50%) of portfolio; per scrip limit (10%) of

the net assets of the scheme

10 Stock options - Call Sell Sell against existing stock To the extent of the particular scrip holding in theportfolio; Max. limit 50% of portfolio; per scrip limit(100%) of the holding

11 Stock option - Put Buy Purchase against existing stock. To the extent of the particular scrip holding in theHedging against downside on existing portfolio; Max. limit (50%) of portfolio; per scrip limitstock in the face of expected volatility (100%) of the holdingin the stock price

12 Stock options - Put Sell Covered Put Sale against cash To the extent of cash/equivalents in the portfolio.Max. limit (50%) of portfolio; per scrip limit (10%) ofthe net assets of the scheme


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The objective of the Scheme in investing in Schemes of TMF or anyother Mutual Fund will be primarily to gain better yields in the shortterm as compared to other short term instruments in the moneymarket.

vi. Restrictions on Investments (as per schedule 7 of SEBIRegulations 1996)

1. A mutual fund scheme shall not invest more than 15% of itsNAV in debt instruments issued by a single issuer which arerated not below investment grade by a credit rating agencyauthorised to carry out such activity under the Act. Suchinvestment limit may be extended to 20% of the NAV of thescheme with the prior approval of the Board of Trustees and theBoard of asset management company.

Provided that such limit shall not be applicable for investmentsin government securities and money market instruments.

Provided further that investment within such limit can be madein mortgaged backed securitised debt which are rated not belowinvestment grade by a credit rating agency registered with theBoard.”

1A. A mutual fund scheme shall not invest more than 10% of itsNAV in unrated debt instruments issued by a single issuer andthe total investment in such instruments shall not exceed 25%of the NAV of the scheme. All such investments shall be madewith the prior approval of the Board of Trustees and the boardof asset management company.

Debentures irrespective of any residual maturity period (aboveor below 1 year) shall attract the investment restrictions asapplicable for debt instruments as specified under clause 1 and1A above.

2. No Mutual Fund under all its Schemes should own more than10% of the Companies paid-up capital carrying voting rights.

3. Transfers of investments from one scheme to another schemein the same mutual fund shall be allowed only if:-

(a) such transfers are done at the prevailing market price forquoted instruments on spot basis.

Explanation- “ spot basis” shall have same meaning as specifiedby stock exchange for spot transactions.

(b) the securities so transferred shall be in conformity with theinvestment objective of the scheme to which such transferhas been made.

4. A scheme may invest in another scheme under the same assetmanagement company or any other mutual fund without chargingany fees, provided that aggregate interscheme investment madeby all schemes under the same management or in schemesunder the management of any other asset managementcompany shall not exceed 5% of the net asset value of themutual fund.

A scheme can not invest in a Fund of Funds scheme.

5. The initial issue expenses in respect of any scheme may notexceed six per cent of the funds raised under that scheme.

6. Every mutual fund shall buy and sell securities on the basis ofdeliveries and shall in all cases of purchases, take delivery ofrelative securities and in all cases of sale, deliver the securitiesand shall in no case put itself in a position whereby it has tomake short sale or carry forward transaction or engage in badlafinance.

Provided that mutual funds shall enter into derivativestransactions in a recognised stock exchange for the purpose ofhedging and portfolio balancing, in acceptance with theguidelines issued by the Board

7. Every mutual fund shall, get the securities purchased ortransferred in the name of the mutual fund on account of theconcerned scheme, wherever investments are intended to beof long term nature.

8. Pending deployment of funds of a scheme in securities in termsof investment objectives of the scheme a mutual fund can investthe funds of the scheme in short term deposits of scheduledcommercial banks.

9. No mutual fund scheme shall make any investment in;

a) any unlisted security of an associate or group company ofthe sponsor; or

b) any security issued by way of private placement by anassociate or group company of the sponsor; or

c) the listed securities of group companies of the sponsorwhich is in excess of 25% of the net assets of the schemes.

10. No Mutual Fund Schemes shall invest more than 10% of itsNAV in the equity shares or equity related instruments of anyCompany including units/securities of Venture Capital Funds.

11. A Mutual Fund shall not invest more than 5% of its NAV inunlisted equity shares or equity related instruments includingunits/securities of Venture Capital Funds in case of open endedschemes.

These investment limitations / parameters (as expressed / linked tothe net asset / net asset value / capital) shall in the ordinary courseapply as at the date of the most recent transaction or commitment toinvest, and changes do not have to be effected merely because, owingto appreciations or depreciations in value, or by reason of the receiptof any rights, bonuses or benefits in the nature of capital or of anyscheme of arrangement or for amalgamation, reconstruction orexchange, or at any repayment or redemption or other reason outsidethe control of the Fund, any such limits would thereby be breached. Ifthese limits are exceeded for reasons beyond its control, TAML shalladopt as a priority objective the remedying of that situation, taking dueaccount of the interests of the Unitholders.

In addition, certain investment parameters (like limits on exposure toSectors, Industries, Companies, etc.) may be adopted internally byTAML, and amended from time to time, to ensure appropriatediversification / security for the Fund. The Trustee Company / TAMLmay alter these above stated limitations from time to time, and alsoto the extent the SEBI (Mutual Funds) Regulations, 1996 change, soas to permit the Scheme to make its investments in the full spectrumof permitted investments for mutual funds to achieve its investmentobjective. As such all investments of the Scheme will be made inaccordance with SEBI (Mutual Funds) Regulations, 1996, includingSchedule VII thereof.

vii. Securities Lending by the Mutual FundSubject to the SEBI Regulations as applicable from time to timethe Fund may if the Trustee permits, engage in Stock Lending.Stock Lending means the lending of securities to another person orentity for a fixed period of time at a negotiated compensation in orderto enhance returns of the scheme portfolio. The securities lent will bereturned by the borrower on the expiry of the stipulated period. TheAMC will adhere to the following strict internal limits should it engagein Stock Lending.:-Not more than 25% of the net assets of the scheme can generally bedeployed in stock lending and not more than 5% of the scheme canbe can be deployed in Stock lending to any single counterparty.Collateral would always be obtained by the approved intermediary.Collateral value would always be more than the value of the securitylent. Collateral can be in form of cash , bank guarantee, governmentsecurities, as may be agreed upon with the approved intermediary,and would also be subject to a mark to market valuation on a dailybasis.


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Example:A fund has an equity share of a company which it would wish to holdfor a long period of time as a core holding in the portfolio as per thefund manager’s plan. In that case the investors would be benefitedonly to the extent of the rise in the value of the share, from time totime if any, on the exchange. If the fund is enabled to lend the saidsecurity to a borrower who would be wanting to take advantage ofthe market fluctuations in its price, the borrower would return thesecurity to the lender (scheme) at a stipulated time or on demand fora negotiated compensation. The fund’s unitholders can enhance theirreturns to the extent of the compensation it will earn for lending thesame. An adequate security or collateral will have to be maintainedby the intermediary. This should always be higher than the cost ofthe security. Thus it is in the interest of the investors that returns canbe enhanced by way of stock lending rather than hold the securityonly for capital appreciation potential.Thus the scenario under which the fund would participate in stocklending would be :

1. There is a holding of security eg 1 lakh shares of XYZ Ltd in thefund which the fund manager wants to be the core holding ofthe scheme for approximately 6 to 12 months.

2. There is a borrower (not mutual fund) for the security, (who hastaken a short position in the market and needs XYZ Ltd sharesto settle it) who is willing to put up a proper collateral for thesame.(In all cases higher than the price of the script)..

3. The borrower is represented by a proper recognizedintermediary.

4. The agreement is to return the security or the amount sonegotiated at a particular period of time or on demand.

Then the security will be lent by the fund and the unitholders wouldbenefit from the additional compensation earned for lending, apartfrom the capital appreciation which also happens in that stock. Thus,to summarize, stock lending would be done by the scheme only inthe following circumstances:

a) If permitted by trustees and the extent SEBI regulations in thatregard, from time to time.

b) If such activity generates additional returns for the scheme andhelps to enhance the scheme returns.

c) If considering the above, and other factors all considered intotality, such activity is in the interest of unitholders in the scheme.

viii. Underwriting by the SchemeThe Scheme may also undertake underwriting and sub-underwritingactivities (only for equity and equity related instruments) in order toaugment its income, after complying with the approval and complianceprocess specified in the SEBI (underwriters) Rules & Regulations,1993 and further subject to the following norms:

The capital adequacy of the Mutual Fund for the purposes ofSEBI (Underwriters) Rules and Regulations, 1993 shall be thenet assets of the Scheme.

The total underwriting obligation of the Scheme shall not exceed25% of the total net asset value of the Scheme.

No Underwriting commitment may be undertaken in respect ofthe Scheme during the period of 6 months prior to the date ofredemption of the Scheme.

The decision to take up any underwriting commitment shall bemade as if the Scheme is actually investing in that particularsecurity.

As such, all investment restrictions and prudential guidelinesrelating to investments, individually and in aggregate asmentioned in SEBI (Mutual Fund) Regulations shall, in so far asmay be applicable, apply to underwriting commitments whichmay be undertaken under the Scheme.

These underwriting norms / parameters (as expressed / linked to thenet asset/ net asset value/ capital) shall in the ordinary course applyas at the date of the most recent transaction of commitment to

underwrite, and changes do not have to be effected merely because,owing to appreciations or depreciations in value or by reason of thereceipt of any rights, bonuses or benefits in the nature of capital or ofany scheme of arrangement or for amalgamation, reconstruction orexchange, or at any repayment or redemption or other reason outsidethe control of the Fund, any such limits would thereby be breached.If these limits are exceeded for reasons beyond its control, TAMLshall adopt as a priority objective the remedying of that situation,taking due account of the interests of the Unitholders.

As such all underwriting and sub-underwriting activities of the Fundwill be undertaken in accordance with SEBI (Underwriters) Rulesand Regulations, 1993, and the norms as laid down by SEBI Circulardated June 30, 1994, and as amended from time to time.

ix. Portfolio TurnoverThe funds available will be invested in companies which areextensively researched. The fund while at all times emphasising along term investment approach will also undertake trading with aview to booking short term profits depending on market conditions.The overall portfolio turnover rate is expected to be 80%–100% soas to achieve the optimum balance between long term investing andshort term profit booking so as to enable portfolio restructuring whenwarranted.

x. Fundamental AttributesThe information set out below should be read in conjunction with thefull text of this Offering Circular.

1. Structure :An open-ended Growth Scheme offering benefits of IncomeTax Rebate under the Income Tax Act, 1961.

2. Type of Scheme :Equity Linked Savings Scheme

3. Scheme :Tata Tax Saving Fund is a separate and distinct Schemewithin Tata Mutual Fund representing interests in a definedportfolio of assets and liabilities.

4. Investment Objective :The investment objective of the Scheme will be to providemedium to long term capital gains along with the income taxrelief to its Unitholders, while at all times emphasising theimportance of capital appreciation.

5. Terms of the issueMaximum recurring expenses On the first Rs 100 Crores 2.50%of average daily net assets (also refer to para on annual recurringexpenses on page 7 of the offer document).

Maximum Initial issue expenses upto 6% of the amount mobilised

5. Investment Pattern And Risk Profile :Under normal circumstances, the total assets of the Scheme,shall (after providing for all (initial and) ongoing operationalexpense) generally be invested / the indicative asset allocationshall be as follows :

Proportion**% of funds available

Instrument Minimum Likely Maximum RiskUpto Around upto Profile

Equity & Equity Related(Listed/Unlisted) – 80 100 High

Debt & Debt Related – 10 20 Low to(Listed/Securitised) Medium

Debt & Debt Related – 5 10 Low to(Unlisted/Securitised) Medium

Money Market – 5 100* Low to Medium/Sovereign

Total – 100

** At the time of investment* The Trustee Company may from time to time for a short term


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period under exceptional circumstances on defensive considerationinvest upto 100% of the funds available in money market instruments,the primary motive being to protect the Net Asset Value of the Schemeand protect unitholders interests as also to earn reasonable returnson liquid funds maintained for repurchase of units.

The Trustee Co. may from time to time for a short term period underexceptional circumstances on defensive consideration modify / alterthe investment pattern / asset allocation the intent being to protectthe Net Asset Value of the Scheme & Unitholders interests withoutseeking consent of the unitholders.

6. Units Offered / Offer :The Offer Price will be based on Net Asset Value (NAV) withapplicable loads as per SEBI (Mutual Fund) Regulation 1996.

7. Minimum Application:Subscription should be for a minimum of Rs.500/- (50 Units)and in multiples of Rs.500/- thereafter. For additionalpurchases, it shall be for Rs.500/- and in multiples ofRe.500/- thereafter.

8. Repurchase/ Resale / Switch / Listing:

Repurchase/ Resale is at Net Asset Value (NAV) related priceswith repurchase/ resale loads as applicable (within limits) asspecified under SEBI Regulations 1996: the repurchase price shallnot be lower than 93% of the NAV, the sale price will not behigher than 107% of the NAV and further that the differencebetween the sale and repurchase price shall not exceed 7% calculatedon the sale price.

Listing is not envisaged as the Scheme is an open-ended Scheme,with the Fund providing for sales and repurchase on a continuousbasis.

The trustees shall ensure that no change in the fundamental attributesof any scheme or the trust or fees and expenses payable or anyother change which would modify the scheme and affects the interestof unitholders, shall be carried out unless:-

(i) a written communication about the proposed change is sent toeach unitholder and an advertisement is given in one Englishdaily newspaper having nationwide circulation as well as in anewspaper published in the language of the region where theHead Office of the mutual fund is situated; and

(ii) the unitholders are given an option to exit at the prevailing NetAsset Value without any exit load.”

IX. MANAGEMENT OF THE FUNDi. The Asset Management CompanyConstitutionThe Trustee Company has appointed TAML as the AssetManagement Company for TMF. The shareholders of TAML are TSLand TICL. TAML has entered into an Investment ManagementAgreement dated 9th May, 1995 with TTCPL, pursuant to which TAMLwill run the operations of TMF and manage the assets of TMF’sSchemes. TAML, having its registered office at, Fort House, 221 Dr.D. N. Road, Mumbai 400 001 is a Company incorporated under theCompanies Act, 1956 on 15th March 1994 and was approved to actas an Asset Management Company for TMF by SEBI on 30th June,1995. The networth of TAML as on May 31, 2005 is about Rs.55.91crores. TAML is currently managing twenty four open-ended schemesand one closed ended scheme the details of which are stated in theclause on “Previous Schemes of Tata Mutual Fund & CondensedFinancial Information”. The Asset Management Company shall beentitled to fees as stated in the clause on “Investment ManagementFee”. The appointment of TAML as the Asset Management Companycan be terminated with the approval of SEBI and upon resolution bythe Trustee Company, or by 75% of the Unitholders of the Scheme.

The members of the Board of Directors of Tata AssetManagement Limited are :

Mr. F. K. Kavarana (Chairman), Address: Tata Sons Limited, Bom-bay House, 24, Homi Modi Street, Mumbai 400 001, Status: Associ-ate, Occupation: Company Director, Other Directorships: Chair-man Tata Projects Limited, Tata AIG Life Insurance Co. Limited,Tata AIG General Insurance Co. Limited, Exegenix Canada Inc., SitelIndia Limited, Tata Tea Inc., Tatatech Inc., Tata America Interna-tional Corporation, Inter Consumer Goods AG, Executive Chair-man Tata Infotech Limited, Vice Chairman Tata International AG,Tata AG, Tata Enterprises (Overseas) AG, Tata Enterprises Over-seas Limited, Tata Limited, Director Tata Sons Limited, Tata Indus-tries Limited, Tata Tea Limited, Titan Industries Limited, Trent Lim-ited, Akzo Nobel Coatings India Private Limited, Sika Properties Pri-vate Limited, Tata Overseas Development Company Limited, TataInternational (UK) Limited, TKS - Teknosoft S.A., QUARTZ SoftwareTechnology AG, TKS – Banking Solutions SA, Tata Precision Indus-tries (Pte) Limited, Tata Technologies Pte Limited, Tata TechnologyInvestments (Pte) Limited, Tata Projects (Malaysia) Sdn. Bhd., TitanInternational Marketing Limited, Titan International Holdings B. V.,Titan International Investments B.V., ELXSI Corporation, St. JamesCourt Hotel Limited, Tetley Group, Consilience Technologies,

Mr. S. S. Marathe (Director), Address: “Vinay”, 9, Sahajeevan Co-op Hsg. Society, Off. Ganeshkhind Road, Pune – 411 007, Status:Independent, Occupation: Economist, Other Directorships : Chair-man Life & General Associates (Pvt) Limited, Synise TechnologiesPvt. Limited, GDA Trustee and Consultancy Private Limited, ViceChairman Sandvik Asia Limited, Director Automotive Axles Lim-ited, Bajaj Tempo Limited, Bharat Forge Limited, Deepak Fertilisers& Petrochemicals Corporation Limited, Finolex Industries Limited,Larsen and Toubro Limited, Futura Polyesters Limited, Kirloskar Broth-ers Limited, Mandovi Pellets Limited, Pan Gulf Group Limited, Chan-nel Islands, Kinetic Motors Limited, Other Memberships : FormerEconomic Adviser to the Government of India, India’s former Alter-nate Executive Director on the International Monetary Fund, Wash-ington, Former Minister for Economic and Commercial Affairs, Em-bassy of India, Washington, Former Chairman, Bureau of IndustrialCost & Prices, Former Secretary to the Government of India, Minis-try of Industry.

Mr. M. L. Apte (Director), Address: Apte Amalgamations Ltd., 14A– The Club, Near Mangal Anand Hospital, Swastik Park, Chembur,Mumbai 400 071, Status: Independent, Occupation: Industrialist,Other Directorships : Chairman & Managing Director Apte Amal-gamations Limited, Director Bajaj Hindustan Limited, Kulkarni PowerTools Limited, Lintas India Private Limited, The Bombay BurmahTrading Corporation Limited, New Phaltan Sugar Works Limited,Standard Industries Limited, The Raja Bahadur Poona Mills Limited,Grasim Industries Limited, Zodiac Clothing Company Limited, Dr.Writer’s Food Products Private Limited.

Mr. A. Hasib (Director), Address : A/42, Ocean Gold, Twin TowersRoad, Bombay Bank Compound, Prabhadevi, Mumbai - 400 025.Status: Independent, Occupation: Company Director Other Mem-berships : Former Executive Director - RBI, Consultant - NationalBank for Agriculture and Rural Development, Consultant - World Bank,Consultant - UNDP, Former I.M.F. Adviser - Central Bank of Iraq,Former I.M.F. Adviser - Reserve Bank of Fiji, Author of a few booksand a number of articles on Economic Policy.

Mr. A. R. Gandhi (Director), Address: Tata Sons Limited, BombayHouse, 24, Homi Modi Street, Mumbai 400 001, Status: Associate,Occupation: Company Director, Executive Director: Tata Sons Ltd.Other Directorships: Tata Infotech Limited, Benares Hotels, Limited,Bayer Diagnosics India Limited, Raychem RPG Limited, PaperProducts Limited, Ultra Teh Cememt Co Ltd, Tata Tea (GB) Ltd,Tata Tea Inc. Ltd, Trustee: Lintas Employees ProfessionalDevelopment Trust, Lintas Employees Family Plannig Asistance Trsut,Lintas Employees Education Trust. Other Memberships: Panel


25

Member of the Arbitrators of the Indian Merchants’ Chamber, Memberof Advisory Council of Premcband Roychand Group of Companies,Former Member of the Local Advisory Board of the Toronto-DominionBank, India, Was associated with the Local Advisory board (LAB) ofAbu Dhabi Commercial Bank for 8 years (4 years as the Chairman ofLAB), Former Member of Research Committee & AccountingStandards Board of the Institute of Chartered Accountants of India,Former Member of SEBI’s Takeover Panel for exemption under theTakeover Code.

Mr. Ved Prakash Chaturvedi (Managing Director), Address: TataAsset Management Limited, Fort House, 221 Dr D. N. Road, Mumbai400001. Status : Associate, Occupation : Company Executive,Director : Financial Planning Standards Board India.

Duties and Obligations of TAML

(1) The asset management company shall take all reasonable stepsand exercise due diligence to ensure that the investment of fundspertaining to any scheme is not contrary to the provisions ofthese regulations and the trust deed.

(2) The asset management company shall exercise due diligenceand care in all its investments decisions as would be exercisedby other persons engaged in the same business.

(3) The asset management company shall be responsible for theacts of commissions or omissions by its employees or theirpersons whose services have been procured by the assetmanagement company.

(4) The asset management company shall submit to the trusteesquarterly reports of each year on its activities and the compliancewith these regulations.

(5) The trustees at the request of the asset management companymay terminate the assignment of the asset managementcompany at any time:

Provided that such termination shall become effective only afterthe trustees have accepted the termination of assignment andcommunicated their decision in writing to the asset managementcompany.

(6) Notwithstanding anything contained in any contract or agreementor termination, the asset management company or its directorsor other officers shall not be absolved of liability to the mutualfund for their acts of commission or omissions, while holdingsuch position or office.

(7) (a) An asset management company shall not through anybroker associated with the sponsor, purchase or sellsecurities, which is average of 5% or more of the aggregatepurchases and sale or securities made by the mutual fundin all its schemes.

Provided that for the purpose of this sub-regulation,aggregate purchase and sale of securities shall excludesale and distribution of units issued by the mutual fund.

Provided further that the aforesaid limit of 5% shall applyfor a block of any three months

(b) An asset management company shall not purchase or sellsecurities through any broker [ other than a broker referredto in clause (a) of sub-regulation (7)] which is average of5% or more of the aggregate purchases and sale ofsecurities made by the mutual fund in all its schemes,unless the asset management company has recorded inwriting the justification for exceeding the limit of 5% andreports of all such investments are sent to the trustees ona quarterly basis.

Provided that the aforesaid limit shall apply for a block ofthree months.

(8) An asset management company shall not utilise the services ofthe sponsor or any of its associates, employees or their relatives,for the purpose of any securities transaction and distributionand sale of securities:

Provided that an asset management company may utilise suchservices if disclosure to that effect is made to the unit holdersand the brokerage or commission paid is also disclosed in thehalf yearly annual accounts of the mutual fund.

Provided further that the mutual funds shall disclose at the timeof declaring half-yearly and yearly results:

(i) any underwriting obligations undertaken by the schemesof the mutual funds with respect to issue of securities ofassociate companies.

(ii) Devolvement, if any;

(iii) Subscription by the schemes in the issues lead managedby associate companies.

(iv) Subscription to any issue of equity or debt on privateplacement basis where the sponsor or its associatecompanies have acted as arranger or manager.

(9) The asset management company shall file with the trustees thedetails of transactions in securities by the key personnel of theasset management company in their own name or on behalf ofthe asset management company and shall also report to theBoard, as and when required by the Board.

(10) In case the asset management company enters into anysecurities transactions with any of its associates a report to thateffect shall be sent to the trustees at its next meeting.

(11) In case any company has invested more than 5 per cent of thenet asset value of a scheme, the investment made by thatscheme or by any other scheme of the same mutual fund in thatcompany or its subsidiaries shall be brought to the notice of thetrustees by the asset management company and be disclosedin the half yearly and annual accounts of the respective schemeswith justification for such investment provided the latterinvestment has been made within one year of the date of theformer investment calculated on either side.

(12) The asset management company shall file with the trusteesand the Board :-(a) detailed bio-data of all its directors alongwiththeir interest in other companies within fifteen days of theirappointment ;and (b) any change in the interests of directorsevery six months.(c) a quarterly report to the trustees givingdetails and adequate justification about the purchase and saleof the securities of the group companies of the sponsor or theasset management company as the case may be, by the mutualfund during the said quarter."

(13) A statement of holdings in securities of the directors of the assetmanagement company shall be filed with the trustees with thedates of acquisition of such securities at the end of each financialyear.

(14) The asset management company shall not appoint any personas key personnel who has been found guilty of any economicoffense or involved in violation of securities laws.

(15) The asset management company shall appoint registrars andshare transfer agents who are registered with the Board.Provided if the work relating to the transfer of units is processedin-house, the charges at competitive market rates may be debitedto the scheme and for rates higher than the competitive marketrates, prior approval of the trustees shall be obtained and reasonsfor charging higher rates shall be disclosed in the annualaccounts.

(16) The asset management company shall abide by the Code ofConduct as specified in the Fifth Schedule.


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ii. Key Employees of the AMC and relevant experience (All key employees are based in Mumbai)

Employee Age Designation Qualifications Total Type & Nature of ExperienceExp.(yrs.) Assignments held during the last 10 yrs

Ved Prakash Chaturvedi 39 Managing BE (Engg), 17 yrs. December 1994 to August 1998 - Head of Research andDirector PGDM (IIM – Fund Manager at Sun F&C AMC Ltd - Reporting to CIO.

Bangalore) August 1998 to November 1999 – Chief Investment Officerat SBI Funds Management Ltd - Reporting to the ManagingDirector.

December 1999 to January 2002 – Chief Executive ofCholamandalam Asset Management Company Ltd -Reporting to the Board of Directors.

January 2002 to date - Chief Executive Officer at TataAsset Management Ltd. Appointed as Managing Directorwith effect from October 2004. He is the overall incharge ofthe Company - Reporting to the Board of Directors.

Hormuz A Bulsara 42 Sr. Vice FCA., F. C. S., 21 yrs. June 1994 to date – Chief Operating Officer at Tata AssetPresident F.I.C.W.A., Management Ltd. He looks after the Compliance, Finance,(Finance) & B. Com (Hons) Systems, Investor Services, Human Resources andCompany LL. B Administrative functions of the Fund House. He has beenSecretary involved in the setting up of the Tata Mutual Fund since its

inception and has contributed in the setting up of the varioussystems, compliance procedures and controls and is theCorporate Quality Head - Reporting to the ManagingDirector.

Isaac C Jacob 52 Vice MA (Econ), 27 yrs. January 1995 to April 2001 - Senior VP at SSC & B LintasPresident & Masters in - Reporting to the President.

Head Marketing May 2001 to June 2002 - President at FortuneMarleting Mgmt, Dip in Communication (JWT subsidiary) - Reporting to Board of

Advertising Directors.

July 2002 to December 2002 - President (BusinessDevelopment) at Interlink Consultancy - Reporting to Boardof Directors.

January 2003 to date – Vice President & Headof Marketing at Tata Asset Management Ltd - Reporting tothe Managing Director.

Latha Rajaraman 48 First Vice B. Sc, CAIIB 25 yrs. July 1995 to date – As head of Invester Services, has beenPresident directly interfacing with various investors at the corporateInvestor and retail level and looks after Registrar and Investor relatedServices matters at Tata Asset Management Ltd - Reporting to the

Chief Operating Officer.

Murthy Nagarajan 35 First Vice M.COM, 14 yrs. June 1991 to July 1994 - Worked in the AccountsPresident & PGPMS Department at UTI - Reporting to the Manager.

Head November 1996 to August 1999 - Worked as Asst. ViceFixed Income President in the investment department at PNB Gilts Ltd -

Reporting to the Senior Vice President.

August 1999 to date : Working with Tata Asset ManagementLimited in the Investment Department as the Fund Managerfor certain Tata Mutual Fund debt schemes - Reporting tothe Managing Director.


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Employee Age Designation Qualifications Total Type & Nature of ExperienceExp.(yrs.) Assignments held during the last 10 yrs

Venugopal M. 33 General MBA (Finance) 12 yrs. August 1995 to September 1997 - Gained good(Fund Manager for Manager- BSC understanding of the stock market having worked as dealer atthe current scheme) Equity (Mathematics) Tata Asset Management Ltd for about two years after which

Investments he assumed equity fund management responsibilty. Hascleared the certification exam of the BSE Training Institute,for participating in the derivatives market. Has good exposureto large number of industries and companies having donefundamental research over the years. Currently is the FundManager of certain equity schemes of Tata Mutual Fund -Reporting to the Managing Director.

Raghav Iyengar 36 Vice BCom., ACA, 14 yrs. January 1994 to September 1995 - Manager- Project FinancePresident & Grad. CWA at Kanoria Plaschem, involved project funding - Reporting toHead the Director.

Institutional October 1995 to June 1997 - Associate Manager at VCKSales Capital Markets Ltd., marketing Financial products -

Reporting to the General Manager.

July 1997 to March 1998 - Sr. Manager at DSP Merrill LynchLtd Marketing Financial products - Reporting to theExecutive Director.

April 1998 to August 2000 - Associate Vice President atPrudential ICICI Asset Management, mutual fund sales -Reporting to SVP & Head – Sales.

September 2000 to June 2002 - Head - Marketing at JFAsset Management -Mutual Fund sales - Reporting to theDirector.

July 2002 to date - Vice President & Head - Institutional Salesat Tata Asset Management Ltd. Is responsible for salesstrategy and managing sales channels & sales to largeinvestors - Reporting to the Managing Director.

Abhay Nagar 31 Vice MBA (Finance), 10 yrs. September 1995 to August 2002 - In various capacities suchPresident & B. Com(Hons.) as Head of Mutual Fund Desk, Regional Head (west), AsttHead Vice President- Retail Distribution and Vice President & AllRetail Sales India Head(Sales and Distribution) at RR Financial

Consultants Ltd - Reporting to the Managing Director.

September 2002 to date - As Regional Head (North) andPresently is Vice President & Head of Retail Sales at TataAsset Management Ltd - Reporting to the Managing Director.

Bhupinder Sethi 35 Senior Fund B.E, MBA from 11yrs. June 1994 to March 1997 – Equity Analyst, Department ofManager F.M.S, Delhi International Finance at UTI – Reporting to the DeputyEquities General Manager.

March 1997 to January 2000 – Fund Manager of India Fund(India’s first offshore fund, listed on the London StockExchange), Department of International Finance, UTI –Reporting to the General Manager.

February 2000 to January 2002 – Fund Manager at DundeeMutual Funds, sponsored by Dundee Bancorp Inc., Canada –Reporting to the President.

September 2003 to January 2005 – As Vice PresidentInvestments at Jacob Ballas Capital India, subsidiary ofExcelfin Pte. Limited, Singapore and Investment Advisor tothe New York Life International India Fund – Reporting to theManaging Director.

March 2005 to date – As Senior Fund Manager Equities atTata Asset Management Ltd, he is the Fund Manager ofcertain equity schemes of Tata Mutual Fund - Reporting tothe Managing Director.


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Fund Management :The People :The investment operations of the schemes (including this scheme)of Tata Mutual Fund are managed by TAML’s investment team,comprising six people (excluding dealing personnel). The profes-sionally qualified Fund Management Team members (described ingreater detail above) are Mr. M. Venugopal and Mr. MurthyNagarajan and are backed by a team of research / investment per-sonnel, possessing collectively within them a vast and varied knowl-edge base culled out of research, market analysis, physical on-sitevisits, training in portfolio management, derivatives, AMFI courseon Mutual Funds, and so on. The members of the equity researchteam and their past experience is Mr. M. Venugopal, who apartfrom being a Fund Manager is also the Head of the Research, hasbeen with TAML for the past 9 years and prior to that he was asso-ciated with a member of the Stock Exchange as an Equity Analyst,Mr. Arun Khurana has an experience of ten years in the CapitalMarket of which around 6years has been in Equity Research withvarious reputed members of the Stock Exchange, Mr. Pradeep S.Gokhale who has an experience of 10 years in Debt Research and4years in Corporate Finance and Mr. Marzban Irani who has startedhis career with TAML and has spent 4 years with the Company.

The Investment Process :

According to the terms of the respective Offer Document of eachscheme under consideration, decisions regarding the debt : equityallocation, industry selection, stock selection, etc are taken.

The investment committee of the AMC (comprising MD/ CIO, FundManagers and Analysts) is in overall charge of formulating broadinvestment policies, strategies and is responsible for itsimplementation. Based on the in house research / external research,Fund Manager prepares the strategy and proposal to buy/sell thesecurities keeping in view the specific mandate and objectives ofthe schemes. Investment committee discusses the same andapproves / disapproves the recommendation of fund manager. Forequities, the concerned fund manger has an authority to buy/salesecurities which are part of approved universe.

The existing portfolio is reviewed regularly by the InvestmentCommittee and the respective Fund Manager(s) and based on thediscussions (which would involve fundamental reasons such as pastperformance, future outlook etc.), decisions are taken to add/ reduce/exit from securities.

For equity, investments will only be in the universe of securitiesapproved by the Executive Committee of the AMC. However theInvestment Committee has an authorisation limit within which it canapprove the investments in stocks out side the approved universe.

Justification for all investment decisions are recorded in writing.SEBI norms regarding maximum exposure per scrip, investmentwith respect to the equity capital of a company, investment in groupcompanies, etc are strictly adhered to. Interscheme transfers aremade as per the market price or the valuations being followed, sothat neither of the schemes is benefited or adversely affected.

Performance of the scheme and complete portfolio statementelaborating various classifications, limits and valuations is placedfor scrutiny before the Board of Directors of the AMC and the TrusteeCompany at their Board Meetings.

Benchmark Index :

BSE SENSEX is the benchmark index for Tata Tax Saving Fund.

iii. The Custodian

The Trustee Company has entered into a Custodial Agreement withHDFC Bank Ltd, pursuant to which HDFC Bank Ltd shall be thecustodian for the Scheme. The custodian is registered with SEBIand the SEBI Regn. No. IN/CUS/001 and its address is:

HDFC Bank LimitedCustody & Depository Services,Trade World, A - Wing, Kamla Mill CompoundSenapati Bapat Marg,Lower Parel (West),Mumbai 400 013.

The custodian does not have the power or authority to sell or disposeof or deal in the securities / investments held by it on behalf of theFund except as instructed by the Trustee Company / AssetManagement Company The salient features of the custodialagreement and the responsibilities of the custodian include :

Keeping in safe custody all the securities and such otherinstruments belonging to the Scheme segregated from theother assets of the custodian and from the assets of otherclients of the custodian and shall be held in the name of theTrustee Company A/c Fund or in such other manner as maybe mutually agreed

Ensuring the smooth inflow / outflow of securities and suchother instruments as and when necessary, in the best interestsof the Unitholders.

Ensuring that the benefits due to the holdings are recovered.

Responsibility for loss of or damage to the securities due tofraud, bad faith, negligence or wilful neglect or default or wilfuldefault on its part or on the part of its approved agents.

TMF shall pay HDFC Bank Limited, custodian fees for its servicesat prevailing NSDL/CDSL and competitive market rates. HDFC BankLimited will also be reimbursed all reasonable out of pocketexpenses incurred by it, in the performance of its duties. Thecustodian agreement may be terminated upon 60 days prior writtennotice, subject to the non-objection of such termination by SEBI, orearlier upon certain breaches.

iv. The Registrar

Computer Age Management Services (Private) Limited, A&BLakshmi Bhavan, 609, Anna Salai, Chennai – 600 006 (Cams) hasbeen appointed as Registrar for the Scheme. The Registrar isregistered with SEBI under registration number INR000002813. AsRegistrar to the Scheme, Cams will handle communications withinvestors and despatch account statements during the Initial OfferPeriod. TAML and TTCPL have satisfied themselves that theRegistrar can provide the services required and have adequatefacilities and system capabilities. As Registrar to the Scheme, theywill accept and process Unitholders applications and inform TAMLas to the amounts received for subscriptions (duly reconciled) duringthe Initial Offer Period and also during the ongoing subscriptionperiod.

v. The Auditor

TTCPL shall have the financial statements for the Scheme auditedby such Chartered Accountant(s) as may be appointed for thatpurpose by the Trustee Company. S.B.Billimoria & Co. CharteredAccountants, Mafatlal Centre, Backbay Reclamation,Mumbai 400020, have been appointed in such capacity.

vi. Bankers

ICICI Bank Ltd.(SEBI Registration Number: 100000004)

vii. List of Authorised Investor Service Centres

The Registrar, Computer Age Management Services (Private)Limited, have set up a special Investor service cell for quick redressalof Unitholder grievances (if any). All correspondence, including changein the name, address, designated bank account number and bankbranch, loss of Unit Certificate, Account Statement, etc. should beaddressed to :


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Computer Age Management Services (Private) Limited, A&BLakshmi Bhavan, 609, Anna Salai, Chennai – 600 006.

For providing clarifications/help to the Unitholders Computer AgeManagement Services (Private) Limited the Registrar CAMS hasappointed N. K. Prasad, Head, Process Management, as theCompliance Officer (Investor Services) and he is available at theabove-mentioned address.

X. UNITS & OFFER

i. Offer of Units

Tata Tax Saving Fund was launched as a close ended Scheme on20th December 1995. The initial Offering Period ended on 31st March1996 and a sum Rs. 12.95 Crores were collected. Based on theNotification dated 22nd December 1998 by the Ministry of Finance,Department of Economic Affairs, (Capital Market Division),Government of India, the Trustee Company has been permitted tooperate the Scheme as an open-ended Scheme with the priorapproval of SEBI. Accordingly, the Trustee Company has convertedthe Tata Tax Saving Fund into an open ended Scheme and the offeris being made for subscription of Units on an ongoing basis. On aninvestment under this scheme of an amount upto Rs. 10,000/- IncomeTax Rebate @ 20% (25% in case of an author, playwright, artist,musician, actor or sportsman) would be admissible to an individual,Hindu Undivided Family under Section 88 of the Income Tax Act1961. Units allotted under this option cannot be repurchased, switchedduring the lock-in period of three years. This offering circular replacesthe previous offering circular dated 11th December 1995.

ii. Minimum Application

Subscription by a Unitholder should be for a minimum of Rs.500/-and in multiples of Re.500/- thereafter. For additional purchases, itshall be for Rs.500/- and in multiples of Rs.500/- thereafter.

iii. Refund

Refund of subscription money to applicants whose applications areinvalid for any reason whatsoever, will be without incurring any liabilitywhatsoever for interest or other sum.

iv. Despatch of Account Statement and Unit CertificatesAn Account Statement will be despatched to each Unitholder statingthe number of Units held, etc. within a maximum of thirty Days fromthe Date of Allotment.

On request from the unitholders, the Asset Management Companyshall within 6 weeks issue the Unit Certificate. The request can bemade to any of the Authorised Investor Service Centres. The costfor issuing the Unit Certificate in lieu of Account Statement will beborne by the Scheme and will form part of its annual ongoingexpenses.

v. Listing, Transfer & Pledge of UnitsBeing an open ended scheme, the units of the scheme are notproposed to be listed on any Stock Exchange. The Trustee may, atits sole discretion, cause the units under the scheme to be listed onone or more Stock Exchange. Notification of the same will be madethrough Investor Service Centers or the AMC and as may be requiredby the respective Stock Exchanges.

As the Fund will be repurchasing and issuing the Units on an ongoingbasis, no transfer facility is required.

Units under this scheme can be pledged (converted into money)with scheduled banks, financial institutions, NBFCs, or any otherbody by the unitholders as security for raising loans. TMF will takenote of such pledge / charge in its records. A standard form /appropriate documentation has been drafted for this purpose andis available on request. However, disbursement of such loans willbe at the entire discretion of scheduled banks, financial institutions,NBFCs, or any other body concerned and TMF assumes noresponsibility therefor.

vi. Nomination FacilityIf an application is made in the name of a single individual holder,the Unitholders under this scheme, can write to Cams AuthorisedInvestor Service Centres requesting for a Nomination Form tonominate a successor to receive the Units upon his / her death, tothe extent provided in the Regulations. All payments and settlementsmade to such nominee and a receipt thereof shall be a validdischarge by the Fund. Unitholders being either parent or lawfulguardian on behalf of a minor and power of attorney holder of aneligible institution, societies, Funds, bodies corporate, partnershipfirms and HUF shall have no right to make any nomination.Nomination in favour of Non-Residents will be governed by the rulesformulated by Reserve Bank of India from time to time

The provisions for nomination with regard to Mutual Funds wouldbe as per Section 56 and Section 69 (regarding the right of thebeneficiary to transfer possession )of the Indian Trusts Act, 1882since the Mutual Fund is formed as a Trust under the said Act.

The AMC has provided this nomination facility as an additionalfeature. By provision of this facility the AMC is not in any wayattempting to grant any rights other than those granted by law tothe nominee. A nomination in respect of the Units does not createan interest in the property after the death of the Unitholder. Thenominee shall receive the units only as an agent and trustee for thelegal heirs or legatees as the case may be. It is hereby clarified thatthe nominees under the nomination facility provided herein shallnot necessarily acquire any title or beneficial interest in the propertyby virue of this nomination & the transmission of units would normallybe governed as per succession certificate/probate of the will.

vii. Applications with Additional HoldersThe mode of holding may be “Single”, “joint” or “either/anyone orsurvivor”

When units are held singly, all notices and correspondences, anydistributions, redemption’s, etc would be sent to the Single holder.Where Units are jointly held, the person first-named in the ApplicationForm will receive all notices and correspondences with respect tothe Account, as well as any distributions through dividends,redemptions or otherwise. Such person shall hold the voting right, ifany, associated with the Units. However, all documentation / purchaseapplications / redemptions requests/ enrollment forms shallnecessarily be signed by all the holders. All payments andsettlements, etc made to such first named holder shall be a validdischarge by the Fund and the liability of the Mutual Fund in thisregard shall be only to the first –named holder.

When Units are held as either / anyone or survivor, the person first-named in the Application Form will receive all notices andcorrespondences with respect to the Account, as well as anydistributions through dividends, redemption’s or otherwise. Anyoneof the Joint holders (in case of either/ anyone or survivor) shall holdthe voting right, if any, associated with the Units and all documentation/purchase applications/redemption requests/enrolment forms may besigned by any one of the joint holders (in case of either/ anyone orsurvivor) and the Mutual Fund will act on the instructions of the firstholder /anyone of the joint account holders. However under all thecases (“joint” or “either / anyone or survivor” and without percentageallocation of investment amongst joint holders), the Fund shallrecognise the first named joint holder as the unit holder and allpayments and settlements, etc. made to such first-named holder shallbe a valid discharge by the Fund and the Fund shall not be liable toany other joint applicants in this regard.

In case units are held singly, the sole unitholder can addname of additional joint unitholders (not exceeding two). Incase the unitholder(s) wants to change the names/order ofthe joint holding, all joint-holders should jointly indicate thechange/alterations of persons and its holders. It should be


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noted that if unit certificate is held, such introduction/alterationof Joint holders shall attract stamp duty and the cost of stampduty will form part of its annual ongoing expenses and/or maybe recovered from the unitholder.

viii. Appointment of Beneficiary

Every individual unitholder shall appoint only one person (viz. spouse,child or dependent) as Beneficiary under the Scheme to receive thebenefits hereunder the Scheme in the event of the death of theUnitholder. The Unitholder can nominate a beneficiary to receive thebenefits under the Scheme upon his / her death, to the extent providedin the foregoing clause(s) on Nomination. If joint names have beeninserted on first holder basis and in the event of death of the firstholder i.e. the Unitholder, the person next in the order as stated inthe application form, (unless changed) shall be the only person(s)recognised by the Fund as having any title or interest in the benefitsunder the Scheme (on first holder basis), to the extent provided inthe foregoing clause(s) on Joint Applications / Holders.

A beneficiary who becomes entitled to hold the Units in consequenceof the death of a sole holder or the person next in the order as statedin the prescribed form (in case of joint holders), insolvency, or windingup or by operation of law, pledge etc., upon producing evidence tothe satisfaction of the Fund, and / or after complying with all theformalities in connection with the claim, shall have the option eitherto be paid repurchase value of Units, or to continue in the Scheme ifhe / she so desires and is otherwise eligible, by issuance of accountstatement in his/ her name. All payments and settlements made tosuch beneficiary and a receipt thereof shall be a valid discharge bythe Fund.

Every appointment of a beneficiary to be made under the Schemeshall be in writing signed by the Unitholder and shall remain in fullforce and effect until the death of the beneficiary / Unitholder or untilthe same is revoked in writing by the Unitholder (by whom the samewas made) and a fresh appointment is made in the manner aforesaid.An Unitholder may from time to time revoke or change the beneficiaryby filling an appropriate form made available at CAMS AuthorisedInvestor Service Centres. The new appointment of the beneficiaryshall take effect on the date the appropriate form for appointment ofthe beneficiary is submitted to CAMS Authorised Investor ServiceCentres whether or not the Unitholder is alive on the date ofacknowledgement of the change in beneficiary without prejudice tothe Fund or Asset Management Company or Trustee Company onaccount of any payment or transmission of Units having been madebefore the acknowledgement of the change or on account of anydelay in payment or transmission of Units having been made due tonon production of evidence to the satisfaction of the Fund, and / ornon compliance with all the formalities in connection with the claim.

The Trustee Company / TAML may alter these above stated provisions/ norms for appointment of a beneficiary from time to time to theextent deemed necessary, and also in conformity with the Guidelinesand Notifications issued by SEBI / Government of India / any otherregulatory body from time to time and / or any statutory modificationor re-enactment thereof, so as to permit the Scheme to providemaximum benefits to the Unitholder and the beneficiary.

The provisions for appointment of beneficiary with regard to MutualFunds would be as per Section 56 and Section 69 (regarding theright of the beneficiary to transfer possession )of the Indian TrustsAct, 1882 since the Mutual Fund is formed as a Trust under the saidAct.

ix. Systematic Investment Plan (SIP) The investors can benefit by investing specified Rupees amountsat regular intervals after scheme reopens for ongoing sales. TheSIP allows the unitholders to invest a fixed amount of Rupees at

regular intervals for purchasing additional units of the scheme atNAV based prices. Investment can be done with the minimum /maximum amount and number of cheques specified by AMC fromtime to time. The cheques will be presented on the dates mentionedon the cheque and subject to realization. Units will be allotted atthe applicable NAV along with applicable load.

x. Duration of the Scheme

The Scheme has been structured like an open-ended Scheme.Investors can invest on an ongoing basis on Business Days atprevailing NAV related price. The Units under the Scheme standredeemed on happening of various events as stated elsewhere inthe Offering Circular. As such except on the happening of any eventas stated in the clause relating to winding up, the Scheme hasperpetual existence and therefore there is no fixed duration of theScheme.

xi. Winding Up

1) in accordance with the SEBI Regulations, the Scheme may bewound up:

on the happening of any event which, in the opinion of theTrustee Company, requires the Scheme to be wound up;or

if seventy five percent of the Unitholders of a Scheme passa resolution that the Scheme be wound up; or

if the SEBI so directs in the interests of the Unitholders.

2) Where a Scheme is to be wound up pursuant to the aboveRegulation, the Trustee Company shall give notice of thecircumstances leading to the winding up of the Scheme-

To SEBI; and

in two daily newspapers having circulation all over Indiaand also in a vernacular newspaper circulating at the placewhere the Fund is established.

xii. Procedure for Winding Up

The Trustee Company shall call a meeting of the Unitholders toconsider and pass necessary resolutions by simple majority of theUnitholders present and voting at the meeting for authorising theTrustee Company or any other person to take steps for winding upthe Scheme. The Trustee Company or the person authorised asabove, shall dispose off the assets of the Scheme concerned in thebest interests of the Unitholders of the Scheme.

The proceeds of sale made in pursuance of the above shall in thefirst instance be utilised towards the discharge of such liabilities asare properly due and payable under the Scheme and after makingappropriate provision for liability and for meeting the expensesconnected with such winding up, the balance shall be paid to theUnitholders in proportion to their respective interest in the assets ofthe Scheme as on the date when the decision for winding up wastaken.

On the completion of the winding up, the Trustee Company shallforward to SEBI and the Unitholders a report on the winding upcontaining particulars such as circumstances leading to the windingup, the steps taken for disposal of assets of the Scheme beforewinding up, expenses of the Scheme for winding up, net assetsavailable for distribution to the Unitholders and a certificate from theAuditors of the Fund.

Notwithstanding anything contained herein, the provisions of the SEBIRegulations in respect of disclosures of half- yearly reports and annualreport shall continue to apply.

After the receipt of the report referred to above under “Procedure forWinding Up”, if SEBI is satisfied that all measures for winding up ofthe Scheme have been completed, the Scheme shall cease to exist.


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XI. SALE OF UNITS BEING OFFEREDi. Application Details:a) Minimum investment:

An application shall be for a minimum of Rs.500/- and inmultiples of Re.500/- thereafter. For additional purchase, it shallbe for Rs.500/- and in multiples of Rs.500/- thereafter.

(b)Eligibility for application

The following persons (subject, wherever relevant to, Sale of Unitsbeing permitted under their respective constitutions and relevantState Regulations) are eligible to apply for the purchase of the Units:

Adult individuals, either singly or more than one (notexceeding three) on first holder basis.

Parents, or other lawful Guardians on behalf of Minors.

Companies, corporate bodies, public sector undertakings,trusts, wakf boards or endowments, funds, institutions,associations of persons or bodies of individuals andsocieties (including co-operative societies) registered underthe Societies Registration Act, 1860 (so long as thePurchase of Units is permitted under their respectiveconstitutions).

Mutual Funds (including any Scheme managed by TAMLor any Scheme of any other Mutual Fund); (in accordancewith Regulation 44(1) read with Clause 4 of Schedule VII,of the Securities & Exchange Board of India (Mutual Funds)Regulations, 1996).

Asset Management Companies (in accordance withRegulation 24(3) of the Securities & Exchange Board ofIndia (Mutual Funds) Regulations, 1996).

Partnership firms, in the name of the partners.

Hindu Undivided families (HUF) in the sole name of theKarta.

Financial and Investment Institutions/ Banks.

Army/ Navy / Air Force, para military Units and other eligibleinstitutions.

Religious and Charitable Trusts provided these are allowedto invest as per statute and their by-laws.

Scientific and Industrial Research organisations (so longas the Purchase of Units is permitted under their respectiveconstitutions)

Provident / Pension (Gratuity/ Superannuation and suchother retirement and employee benefit and other similarfunds (so long as the Purchase of Units is permitted undertheir respective constitutions.)

Non-resident Indians/persons of Indian origin residingabroad (NRIs) on a full repatriation basis.

Foreign Institutional Investors registered with SEBI (FIIs).

Overseas Financial Organisations which have entered intoan arrangement for investment in India, inter-alia, with aMutual Fund registered with SEBI and which arrangementis approved by the Central Government.

International Multilateral Agencies approved by theGovernment of India.

If a person resident of India at the time of subscription becomes aperson resident outside India subsequently, shall have the option toeither be paid repurchase value of Units, or continue into the Schemeif he/ she so desires and is otherwise eligible. However, the personwho desires to continue in the Scheme shall not be entitled to anyinterest or any compensation during the period it takes for the Fundto record the change in Address and the Residential Status.Notwithstanding the aforesaid, the Trustee Company reserves theright to close the Unitholder account and to pay the repurchasevalue of Units, subsequent to his becoming a person resident outside

India, should the reasons of expediency, cost, interest of Unitholdersand other circumstances make it necessary for the Fund to do so.In such an event, no resident Unitholders who have subsequentlybecome resident outside India shall have a right to claim the growthin capital and/ or income distribution.

This scheme has not been registered in any country outside India.To ensure compliance with any Laws, Acts, Enactments, etc.including by way of Circulars, Press Releases, or Notifications ofGovernment of India, the Fund may require/give verification ofidentity/any special/additional subscription-related information from/of the Unitholders(which may result in delay in dealing with theapplications, Units, benefits, distribution, etc./giving subscriptiondetails, etc). Each Unitholder must represent and warrant to theTrustee Company/TAML that, among other things, he is able toacquire Units without violating applicable laws. The TrusteeCompany will not knowingly offer or sell Units to any person towhom such offer or sale would be unlawful, or might result in theFund incurring any liability or suffering any other pecuniarydisadvantages which the Fund might not otherwise incur or suffer.Units may not be held by any person in breach of the law orrequirements of any governmental, statutory authority including,without limitation, Exchange Control Regulations. The Trusteecompany may, compulsorily redeem any Units held directly orbeneficially in contravention of these prohibitions. In view of theindividual nature of investment portfolio and its consequences, eachUnitholder is advised to consult his/her own professional advisorconcerning possible consequences of purchasing, holding, selling,converting or otherwise disposing of the Units under the laws ofhis/her State/country of incorporation, establishment, citizenship,residence or domicile.

ii. Procedure for applicationHow to applyApplication forms complete in all respects, accompanied by theamount in cheque / draft are to be submitted to any of theAuthorised Investor Service Centres, as stated in the OfferCircular or as may be declared. All cheques and bank draftsaccompanying the application form should contain the applicationform number and the name of the applicant on its reverse. Foradditional instructions, investors are requested to follow theapplication form carefully. All cheques/ drafts by the applicantsshould be made out in favour of “Tata Tax Saving Fund” andcrossed “A/c Payee and Not Negotiable”.

The Authorised Investor Service Centres/Marketing Associates whoreceive the application form shall stamp and return the“Acknowledgement Slip” of the application form, therebyacknowledging receipt of the application form. The investors arerequested to preserve the acknowledgement slip duly sTAMLpedby the Authorised Investor Service Centres / Marketing Associates.This shall be subject to final verification and scrutiny by the TrusteeCompany / Asset Management Company that the cheque / demanddraft and application form are in order / valid.

In case of a total investment of Rs.50,000/- and above, the investorsshould furnish Income Tax P.A.N. / G.I.R. number and I.T. Circleaddress (if allotted).

For ongoing subscription, applications completed in allrespects, must be submitted only at the Investors ServiceCenters.Application form (duly completed), along with a cheque (drawn onChennai) / DD (payable at Chennai) may also be sent by Maildirectly to the Registrar viz. Computer Age Management Services(Private) Limited, Unit : Tata Mutual Fund, A&B Lakshmi Bhavan,609, Anna Salai, Chennai – 600 006, superscribing the envelope as“ Tata Mutual Fund - Application form - TTSF”.

If there is no Authorised Investor Service Centres where the investorresides, he/she may Sale a Demand Draft from any other Bank infavour of “Tata Tax Saving Fund”, payable at Mumbai, after


32

deducting bank charges / commission (as per IBA guidelines forthe Demand Draft) from the amount of investment. If such bankcharges / commission are not deducted by the applicant, then thesame may not be reimbursed by the Trustee Company. Such bankcharges / commission will be treated as an ongoing expense.However in case of application along with local Cheque or BankDraft payable at Mumbai, at / from locations where TMF has itsdesignated Authorised Investor Service Centres, Bank Draftcharges/ commission may have to be borne by the applicant. Insuch cases the Trustee Company is entitled, in its sole and absolutediscretion, to reject or accept any application.

Example:

If an amount of Rs. 5,000/- is being invested in Tata Tax SavingFund by an investor resident in India having no specified collectioncentre near his / her residence, the Demand Draft charges that he/she can deduct has been illustrated below:

INVESTMENT DEMAND DRAFT THE CORRECT AMOUNTMADE (RS.) CHARGES (RS.) OF PAYMENT AFTER(say) RECOVERY OF DEMAND

DRAFT CHARGES (RS.)

5,000.00 50.00 4950.00

Please note that Stockinvests and Postdated Cheques, MoneyOrders and Postal Orders would not be accepted.

Subscription by NRIsIn terms of Schedule 5 of Notification no. FEMA 20/2000 datedMay 3, 2000, RBI has granted general permission to NRIs topurchase, on a repatriation basis units of domestic mutual funds.Further, the general permission is also granted to NRIs to sell theunits to the mutual funds for repurchase or for the payment ofmaturity proceeds, provided that the units have been purchased inaccordance with the conditions set out in the aforesaid notification.For the purpose of this section, the term “mutual funds” is as referredto in Clause (23D) of Section 10 of Income-Tax Act 1961. However,NRI investors, if so desired, also have the option to make theirinvestment on a non-repatriable basis.

Subscription by FIIs

In terms of Schedule 5 of Notification no. FEMA 20/2000 datedMay 3, 2000. RBI has granted general permission to a registeredFII to purchase on a repatriation basis units of domestic mutualfunds subject to the conditions set out in the aforesaid notification.Further, the general permission is also granted to FIIs to sell theunits to the mutual funds for repurchase or for the payment ofmaturity proceeds, provided that the units have been purchased inaccordance with the conditions set out in the aforesaid notification.For the purpose of this section, the term “mutual funds” is as referredto in Clause (23D) of Section 10 of Income-Tax Act 1961.

Mode of Payment on Repatriation basisNRIsIn case of NRIs and persons of Indian origin residing abroad,payment may be made by way of Indian Rupee drafts purchasedabroad and payable at Mumbai or by way of cheques drawn onNon-Resident (External) (NRE) Accounts payable at par at Mumbai.Payments can also be made by means of rupee drafts payable atMumbai and purchased out of funds held in NRE / FCNR Accounts.

In case Indian rupee drafts are purchased abroad or from ForeignCurrency Accounts or Non-resident Rupee Accounts an accountdebit certificate from the Bank issuing the draft confirming the debitshall also be enclosed.

FIIs

FIIs may pay their subscription amounts either by way of inwardremittance through normal banking channels or out of funds held inForeign Currency Account or Non-resident Rupee Accountmaintained by the FII with a designated branch of an authorized

dealer with the approval of the RBI subject to the terms andconditions set out in the aforesaid notification.

All cheques/drafts should be made out in favour of “TATA TAXSAVING FUND” and crossed “Account Payee Only”. In case IndianRupee drafts are purchased abroad or from FCNR/NRE A/c. anaccount debit certificate from the Bank issuing the draft confirmingthe debit shall also be enclosed.

Mode of payment on Non-Repatriation basisIn case of NRIs/Persons of Indian origin seeking to apply for Unitson a non-repatriation basis, payments may be made by cheques/demand drafts drawn out of Non-Resident Ordinary (NRO) accounts/Non-Resident Special Rupee (NRSR) accounts and Non ResidentNon-Repatriable (NRNR) accounts payable at the city where theApplication Form is accepted.

Refunds, interest and other distribution (if any) and maturityproceeds/repurchase price and /or income earned (if any) will bepayable in Indian Rupees only. The maturity proceeds/repurchasevalue of units issued on repatriation basis, income earned thereon,net of taxes may be credited to NRE/FCNR account (details of whichshould be furnished in the space provided for this purpose in theApplication Form) of the non-resident investor or remitted to thenon-resident investor. Such payments in Indian Rupees will beconverted into US dollars or into any other currency, as may bepermitted by the RBI, at the rate of exchange prevailing at the timeof remittance and will be dispatched through Registered Post at theunitholders risk. The Fund will not be liable for any loss on accountof exchange fluctuations, while converting the rupee amount in USdollar or any other currency. Credit of such proceeds to NRE/FCNRaccount or remittance thereof may be permitted by authorized dealeronly on production of a certificate from the Fund that the investmentwas made out of inward remittance or from the Funds held in NRE/FCNR account of the investor maintained with an authorized dealerin India. However, there is no objection to credit of such proceedsto NRO/NRSR account of the investor if he so desires.

Subscription by Multilateral Funding Agencies, on full repatriationbasis, is subject to approval by the Foreign Investment PromotionBoard.

Rejection of applicationsApplications not complete in any respect are liable to be rejected.The Trustee Company may reject any application not in accordancewith the terms of the Scheme.

iii. General Instructions

Documents to be submitted

In the case of applications under Power of AttorneyIf any application or any request for transmission is signed by aperson holding a valid Power of Attorney, the original Power ofAttorney or a certified copy duly notarised should be submitted withthe application or the transmission request, as the case may be,unless the Power of Attorney has already been registered with theFund / Registrar.

In the case of applications by limited Company or a corporate bodyor an eligible institution or a registered society or a Trust or a Fundor a FII etc.

In the case of applications by limited Company or a corporate bodyor an eligible institution or a registered society or a trust or a fund ora FII, a certified true copy of the Board resolution of the ManagingBody authorising transactions in Units including authority grantedin favour of the officials signing the application for Units and theirspecimen signature etc. alongwith a certified copy of theMemorandum and Articles of Association and / or bye-laws and / ortrust deed and / or partnership deed and Certificate of Registrationshould be submitted. The officials should sign the application underthe official designation. In the case of a Trust/ Fund, it shall producea resolution from the Trustee(s) authorising such purchases.


33

The above mentioned documents or duly certified copy thereof mustbe lodged separately at the office of the Registrar to the Offer,quoting the serial number of the application.

In case of non submission of the above mentioned documents, theTrustee Company is entitled, in its sole and absolute discretion, toreject or accept any application.

Availability of Application Forms and Offering CircularApplication forms and copies of Offering Circular may be obtainedfrom the office of Tata Asset Management Limited., Offices of theAuthorised Investor Service Centres on Back Cover Page of thisOffering Circular or any agents of TMF.

Bank Account DetailsIt shall be mandatory for the Unitholders to mention their bankaccount numbers in their applications/requests for redemptions.Unitholders are requested to give the full particulars of their BankAccount i.e. nature and number of account, name, Account Number,Nine digit Bank Code Number (For Electronic Credit Facility), branchaddress of the bank at the appropriate space in the applicationform.

For faster dissemination of information, Unitholders arerequested to provide their e-mail ID.

Any application for subscription /request for redemptionwithout Bank account details will be rejected by the mutualfund.

PAN Number Details of the InvestorsAs per SEBI Circular SEBI/MD/CIR. No6/ 4213/04 dated March 1,2004 Whenever an application is for total value of Rs 50,000/- ormore, the applicant or in case of application is in joint names, eachof the applicants, should mention his/her permanent account number(PAN) allotted under the Income Tax Act, 1961. As per Rule 114Bof The Income Tata Rules 1962, every person shall quote hispermanent account number (PAN) in all documents pertaining topayment of an amount of Rupees Fifty Thousand or more to a MutualFund for purchase of its units. In case the person making thepayment is a minor who does not have any income chargeable toincome tax, he shall quote the permanent account number of hisfather or mother or guardian, as the case may be. Any person whodoes not have a permanent account number and who enters intoany transaction specified in this rule shall make a declaration inForm No. 60 / 61 giving therein the particulars of such transaction.

In case of a joint holding, PAN / Form No. 60 / 61 is required for allthe joint holders.

Any application for subscription of units of the total value ofRs 50,000/- or more without a valid PAN / Form No. 60 / 61 willbe liable to be rejected by the Mutual Fund.

For validation purposes investors are required to submit xeroxof PAN Card or any other communication received from theIncome Tax department specifying name and PAN No of theinvestor.

Note: Investors are urged to refer The Income Tax Rules, 1962 orconsult their Tax Advisors for further details.

Unique Identification Number (UIN) Requirement In case of a body corporate:

As per the SEBI Notification No. MRD/DOP/MAPIN/Cir –26 /2004 dt. August 16, 2004 no specified investor being a bodycorporate shall buy, sell or deal in any securities which arelisted on any recognized stock exchange or in units of amutual fund or a collective investment scheme or subscribeto securities which are proposed to be listed in any recognizedstock exchange or units of a mutual fund or a collectiveinvestment scheme unless such specified investor, itspromoters and directors have been allotted UIN by December31, 2004. Further, vide Press Release PR No.344/2004 dt.

31st December, 2004 SEBI has specified 31st December,2005 as the notified date for the purpose of obtaining UniqueIdentification Number for specified investors being bodiescorporate whose promoters or directors are persons residentoutside India. For this purpose, the words person residentoutside India shall have the same meaning as is assigned u/s 2(w) of Foreign Exchange Management Act, 1999.

In case of other investors:As per the Gazette Notification S.O. No. 1077 (E). dt. 28thSeptember, 2004, published by SEBI all resident investorsother than a body corporate shall quote UIN number in allapplication for any transaction in units of mutual funds ofvalue of one lakh rupees or more effective from January 1,2006.

In case of a joint holding UIN of all the joint holders shouldbe mentioned in the application form.

All applications received from a Body Corporate after 31stDecember, 2004 without valid UIN would be liable to be rejected.In case of investors other than a Body Corporate for an amountgreater than Rs.1,00,000/- after 1st January, 2006 without avalid UIN would be liable to be rejected by the Mutual Fund.

As per SEBI Notification No. MAPIN/Cir –13/2005 dt. July 1, 2005the above requirement of UIN has been temporarily discontinued.

XII. DIVIDENDS & DISTRIBUTIONSThe income / profits received / earned would be accumulated by theFund as capital accretion, aimed at achieving medium to long termand also short term capital growth and reflected in the NAV. In thealternative and as may be decided by the Trustee Company alongwith the Asset Management Company, the profits received / earnedand so retained and reinvested may be distributed as Income atappropriate rates (after providing for all relevant ongoing expenses,etc.) and at appropriate intervals as may be decided and will bedistributed to the unitholders who hold the units on the record date ofdeclaration of the Income. The Income Distribution warrants shall bedespatched within 30 days of the declaration of the Income. Guidedby the philosophy of value-oriented returns, the Trustee Companymay periodically capitalise net earnings of the Scheme (includinginterest income and realised gains and losses on the Securities) byway of allotment/credit of bonus Units to the Unitholders Accounts,the intent being to protect the Net Asset Value of the Scheme andUnitholders’ interests.

The Fund does not assure any targeted annual return / income norany capitalisation ratio. Accumulation of earnings and / orcapitalisation of bonus units and the consequent determination ofNAV, may be suspended temporarily or indefinitely under any of thecircumstances as stated in the clause “Suspension of Ongoing Sale,Repurchase or Switch of Units.”

Dividend Reinvestment Option :

Unitholders under this Option also have the facility of reinvestmentof the income so declared, if so desired. Income Distribution Warrantswill not be despatched to such Unitholders. The income declaredwould be reinvested in the Scheme on the immediately following ex-dividend date.

XIII. INTER SCHEME TRANSFERTransfers of investments from one Scheme to anotherScheme(including the present Scheme) under Tata Mutual Fund,shall be allowed only if:

such transfers are made at the prevailing market price for quotedsecurities or, Fair value in case of non-quoted/non-tradedsecurities on spot basis;

the securities so transferred shall be in conformity with theinvestment objective of the Scheme to which such transfer hasbeen made.


34

XIV. ASSOCIATE TRANSACTIONSi) As per SEBI Regulations, the Fund shall not make any investments in any unlisted securities of associate/group companies of the

sponsors. The Fund will also not make investment in privately placed securities issued by Associate/Group companies of the Sponsors.The Fund may invest not more than 25% of the net assets (of all the Schemes of the Fund) in listed securities of Group companies.

ii) Market value of investments made in companies which have invested more than 5% of the Net Assets of a scheme and investmentsmade by that or any other scheme of Tata Mutual Fund in such company or its subsidiaries within one year of the latter investmentcalculated on either side in terms of Regulation 25(11) as on 31st May, 2005 as given.

Rs. lacs.

Company which has Invested Schemes in Schemes Aggregate Cost Outstandingwhich Companies which of Acquisition as athave invested have during the 31st May, 05more than 5% invested period ended at Fair /of the Net Assets 31st May, 05 Market Value

TATA IRON & STEEL CO. LTD. TFHF A2 TSEF 534.54 0.00TFHF A3 TDYF 1673.00 0.00TFHF A4 TBF 516.18 0.00TFHF A1 TEOF 5006.51 0.00TFHFS1 A6 TEQPEF 1240.20 217.71TLF TIFN 363.60 2.01

TIFS 16.46 1.16TGF 329.99 0.00TISF 1597.87 475.33TMIF 516.07 0.00TMPF 1095.14 0.00TPEF 3212.65 0.00TTSF 656.78 0.00TYCF 263.66 60.60

TATA MOTORS LIMITED TFHFS1 A6 TSEF 77.93 0.00TFHF A1 TDYF 74.01 64.94TFHF A2 TBF 255.63 173.18TFHF A3 TEOF 3046.89 0.00TFHF A4 TIF 954.68 0.00

TIFN 369.94 1.57TIFS 13.84 0.71TGF 55.59 0.00TLF 1750.89 0.00TMIF 170.49 0.00TMPF 363.82 0.00TPEF 901.17 0.00TTSF 85.12 0.00TYCF 42.17 0.00

VIDESH SANCHAR NIGAM LTD TFHF A1 TSEF 381.05 77.33TFHF A2 TDYF 506.57 438.01

TBF 311.45 145.60TIFN 113.51 0.63TISF 727.38 425.19TMPF 363.89 0.00TTSF 224.51 0.00

TATA CHEMICALS LIMITED TFHF A1 TDYF 1113.54 1281.01TFHF A2 TIFN 64.11 0.38

TTSF 63.10 0.00

TATA CONSULTANCY SERVICES TFHFS1 A6 TSEF 127.45 0.00TBF 233.66 4.71TEOF 649.68 495.13TEQPEF 209.56 0.00TIFN 7.23 6.39TGF 82.60 0.00TLSTF 73.58 115.57TMIF 1152.2 0.00TMPF 932.27 0.00TPEF 284.82 357.94TTSF 99.98 0.00TYCF 211.89 292.78


35


HERO HONDA MOTORS LTD TGSF TSEF 248.28 0.00TDYF 693.28 575.31TBF 269.02 0.00TEOF 1276.84 0.00TIFN 208.78 1.10TIFS 6.39 0.43TGF 1.56 0.00TMIF 318.32 0.00TMPF 262.44 0.00TPEF 535.64 0.00TYCF 174.68 0.00

ALLAHABAD BANK TPEF TDYF 30.00 0.00TISF 60.00 0.00TSIF 60.00 0.00

ICICI BANK LTD TLF TDBF 2450.22 0.00TBF 522.03 473.03TEOF 951.45 0.00TFHF A1 3819.87 3533.10TFHF A2 5586.21 5481.87TFHFS1 A6 2567.83 2550.97TFRSTF 23789.13 14007.66TIF 2398.71 50.41TIFN 415.34 2.88TIFS 34.54 2.23TIPF 483.52 0.00TISF 7492.02 0.00TLF 91259.48 40956.79TMIF 8149.71 484.32TMPF 1522.57 0.00TSIF 480.17 0.00TSTBF 12994.6758 0.00TPEF 365.17 0.00TYCF 1017.62 473.03

HINDUSTAN ZINC LIMITED TFHF A3 TSEF 171.39 113.85TFHF A4 TBF 119.75 0.00TSTBF TEOF 412.29 250.59

TISF 318.78 299.6TMPF 152.45 0.00TPEF 287.92 51.3

HCL TECHNOLOGIES LTD TFHFS1 A6 TDYF 1470.91 1463.2TFHF A3 TBF 358.49 128.03

TEOF 1861.34 731.60TEQPEF 157.32 0.00TIFN 207.54 1.17TIFS 0.22 0.00TGF 110.95 109.74TLSTF 290.91 109.74TMIF 116.40 0.00TMPF 224.64 0.00TSIF 719.92 735.26TPEF 807.48 365.80TTSF 210.68 0.00TYCF 54.31 0.00


36


ITC LTD TLF TSEF 147.10 0.00TFRSTF TDYF 934.62 0.00

TBF 372.74 0.00TEOF 1741.01 0.00TEQPEF 176.64 0.00TIFN 595.51 3.97TIFS 26.70 2.16TGF 460.50 135.71TLSTF 148.81 0.00TMIF 480.73 0.00TPEF 1517.79 591.85TTSF 254.06 0.00TYCF 230.95 0.00

WIPRO LTD TLF TBF 409.93 178.98TEOF 500.33 0.00TIFN 930.79 5.03TIFS 16.16 0.78TGF 64.52 0.00TLSTF 324.67 71.59TMIF 357.82 0.00TMPF 814.32 104.16TSIF 678.22 751.70TPEF 722.18 0.00TTSF 373.12 197.58TYCF 140.21 0.00

MAHINDRA & MAHINDRA LTD TSTBF TSEF 444.76 153.60TBF 426.15 143.36TEOF 2735.04 512.00TEQPEF 110.40 0.00TIFN 108.71 0.59TGF 297.29 76.8TMIF 383.47 0.00TMPF 966.94 76.8TSTBF 499.83 98.43TPEF 1093.52 0.00TTSF 430.05 153.6TYCF 156.38 125.39

BANK OF BARODA TSTBF TDYF 1073.81 0.00TBF 107.75 0.00TEOF 183.19 0.00TFHF A4 1605.70 1582.7TGF 141.52 0.00TMIF 67.27 0.00TMPF 543.07 0.00TPEF 165.89 0.00TYCF 154.80 0.00

UTI BANK LTD TSTBF TDBF 1199.2 0.00

TDYF 5895.71 0.00TEOF 379.63 0.00TFHF A2 9899.19 0.00TFHF Q3 1979.19 0.00TFRSTF 6264.21 0.00TIF 1536.24 0.00TIPF 1099.27 0.00TISF 2118.48 2096.09TLF 75593.43 7261.72TMPF 4599.27 0.00TSTBF 7993.72 0.00


37


IDFC LTD TSTBF TDBF 100.32 100.42TDYF 3834.70 0.00TBF 843.68 432.71TFHF A1 1100.00 0.00TFHF A2 3374.73 1730.86TFRSTF 11170.19 2773.4TIF 1003.2 0.00TIPF 200.64 0.00TLF 33443.73 10400.73TMIF 2793.06 0.00TMPF 3286.56 0.00TSTBF 3072.4 502.1TYCF 843.68 432.71

UNION BANK OF INDIA TGF TBF 81.17 0.00TEOF 1376.95 0.00TGF 157.77 0.00TISF 525.72 519.94TMPF 236.52 0.00TPEF 44.1 0.00TTSF 44.1 0.00TYCF 106.45 0.00

JET AIRWAYS LTD TFRSTF TSEF 29.91 0.00TBF 45.46 0.00TEOF 128.22 0.00TGF 17.15 0.00TISF 768.64 456.72TMIF 72.56 0.00TMPF 78.21 0.00TSIF 64.97 67.01TPEF 87.04 0.00TTSF 22.79 0.00TYCF 46.95 57.20

All the above companies are growth oriented blue chip companies with a proven track record.


38

iii) Total investment in securities of Associate/Group companies under all schemes is disclosed below. No investment was made in unlistedsecurities of Group companies after the amendment of the SEBI Regulations in January 1998. Most of such equity shares, debentures,etc. were purchased from the open secondary market at relevant market prices over a period of time based on the approved investmentstrategy. All these securities pertain to highly traded Blue chip companies. In keeping with the investment objective of the Schemes,these companies offer good investment potential.

Rs. in lacs

Scheme As on 31.03.03 As on 31.03.04 As on 31.03.05 As on 31.05.05

Amount %ge Amount %ge Amount %ge Amount %ge

TBF 1146.86 13.93 1184.63 12.10 1057.28 9.77 635.17 5.51

TYCF 648.65 10.22 836.96 8.76 1197.88 10.73 882.88 7.67

TTSF 318.97 13.59 375.12 8.59 687.77 13.13 598.66 10.75

TSEF 563.32 26.58 874.27 16.29 960.77 15.57 403.75 7.86

TIF(A) 302.89 1.42 – – – – – –

TPEF 464.19 17.75 1644.46 13.04 2538.25 13.26 1983.64 8.92

TLSTF 55.07 3.31 202.19 6.50 497.24 13.07 418.16 13.63

TGF 535.25 21.37 540.30 14.11 573.29 14.54 429.06 10.16

TIFS 4.01 7.79 36.66 14.91 3.70 13.23 3.58 10.82

TIFN 3.42 7.81 340.02 11.19 17.65 18.32 14.31 16.55

TMIF 33.07 3.11 525.78 1.15 727.62 5.63 5.97 5.33

TEOF 77.89 15.92 – – 2872.24 10.88 1781.44 6.47

TMPF – – 953.53 2.28 508.80 3.10 354.70 2.47

TEQPEF 1149.81 11.17 849.55 7.95

TDYF 6102.13 18.81 5521.36 16.55

TLF 1009.41 0.44 15775.06 5.86

TISF 4820.74 6.53 1009.45 4.11

TSIF – – 3089.81 11.05

TFHF (A4) 3057.43 17.99 3054.55 17.79

iv) The following amounts were paid/provided for as selling commission by the respective schemes to Associate Companies for theirmarketing efforts in mobilising subscriptions for the units of such schemes.

As on 31/03/2003 Rs. in lacs

Schemes Tata Tata Share Tata Tata Tata Sons Tata Panatone Eureka Trent Tata Inv. Taj Inv.Securities Registry Chemicals Sons & Serv. Empl. Investment Finance Forbes Brands & Fin. & Fin.

Ltd. Ltd. Ltd. Ltd. Welfare Trust Corpn. Ltd. Ltd. Co. Ltd. Ltd.

TBF 3.37 0.10 – 0.16 – – – 1.37 – – –TYCF 1.69 0.08 – – – – – – – – –TTSF 1.69 0.06 – – – – – – – – –TSEF 2.27 0.11 – 0.03 – – 0.03 – – – –TIFA 33.91 1.17 0.36 2.23 – 0.16 – – – 1.22 –TPEF 3.59 0.20 – 0.01 – – – – – – –TLF 15.06 0.01 – 0.23 – – – 0.18 0.32 – 0.63TLSTF 2.11 0.08 – 0.01 – – – 0.08 – – –TGSF 6.15 0.21 – 0.66 0.07 – – – – – –TSTBF 7.88 0.01 – – – – – 0.01 0.18 – –TIPF 12.24 0.01 – – – – – – – – 0.08TMIF 1.51 0.06 – – – – – – – – –TLHIF 0.60 – – – – – – – – – –TIFNA 0.07 – – – – – – – – – –TIFSA 0.12 – – – – – – – – – –TEOF 0.14 – – – – – – – – – –

TINR 1.10 – – – – – – – – – –


39

AS on 31/03/2004 Rs. in lacs

Scheme Taj Inv. & Tata Tata Share TataFinance Co. Ltd. Finance Ltd. Registry Ltd. Securities Ltd.

TIFR 0.91 0.00 1.15 23.22

TLF 0.03 0.00 0.00 30.42

TBF 0.00 0.12 0.10 3.00

TIPF 0.00 0.01 0.05 43.83

TGSF 0.00 0.00 0.24 24.79

TMIF 0.00 0.00 0.10 8.96

TPEF 0.00 0.00 0.27 4.37

TSEF 0.00 0.00 0.12 1.66

TTSF 0.00 0.00 0.09 0.67

TYCF 0.00 0.00 0.08 1.91

TDBF 0.00 0.00 0.00 14.74

TEOF 0.00 0.00 0.00 4.98

TIXF 0.00 0.00 0.00 0.53

TLSTF 0.00 0.00 0.10 2.07

TSTBF 0.00 0.00 0.00 13.76

TFRF 0.00 0.00 0.00 0.90

TMPF 0.05 0.00 0.00 2.02

AS on 31/3/2005 Rs. in lacs

Scheme Tata Tata Share Taj Inv. & TataFinance Ltd Registry Ltd Finance Co. Ltd. Securities Ltd

TBF 0..04 0.04 0.00 1.09

TDBF 0.00 0.00 0.00 0.20

TDYF 0.00 0.00 0.00 7.52

TEOF 0.00 0.01 0.00 2.22

TEQPEF 0.00 0.00 0.00 0.73

TFHF 0.00 0.00 0.00 6.67

TFRSTF 0.00 0.03 0.00 5.06

TFRLTF 0.00 0.00 0.00 0.02

TGSF 0.00 0.04 0.00 8.95

TGSMF 0.00 0.00 0.00 0.79

TGF 0.00 0.00 0.00 0.05

TIF 0.00 0.25 0.08 3.22

TIPF 0.00 0.02 0.00 0.30

TIXF 0.00 0.00 0.00 0.01

TISF 0.00 0.00 0.00 4.92

TLSTF 0.00 0.05 0.00 1.19

TLF 0.00 0.00 0.02 32.18

TMPF 0.00 0.00 0.05 0.65

TMIF 0.00 0.04 0.00 2.86

TPEF 0.00 0.12 0.00 1.65

TSEF 0.00 0.08 0.00 0.89

TSTBF 0.00 0.00 0.00 0.58

TTSF 0.00 0.05 0.00 0.30

TYCF 0.00 0.04 0.00 0.88


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As on 31/05/2005 Rs. in lacs

Scheme Tata Tata Share TataFinance Ltd. Registry Ltd. Securities Ltd.

TBF 0.03 0.02 0.28TDBF 0.00 0.00 0.01TDYF 0.00 0.00 0.50TEOF 0.00 0.00 0.30TEQPEF 0.00 0.00 0.05TFHF 0.00 0.00 1.53TFHFS1 0.00 0.00 0.06TFRSTF 0.00 0.00 1.71TFRLTF 0.00 0.00 0.00TGSF 0.00 0.02 1.31TGSMF 0.00 0.00 0.15TGF 0.00 0.00 0.01TIF 0.00 0.06 0.96TIPF 0.00 0.01 0.10TIXF 0.00 0.00 0.06TSEF 0.00 0.05 0.47TLSTF 0.00 0.03 0.60TLF 0.00 0.00 8.88TMPF 0.00 0.00 0.09TMIF 0.00 0.02 0.12TPEF 0.00 0.06 0.84TSTBF 0.00 0.00 0.03TTSF 0.00 0.03 0.16TISF 0.00 0.00 0.51TSIF 0.00 0.00 0.84TYCF 0.00 0.02 0.46

v. The following amounts were paid/provided for to Tata ShareRegistry Ltd., for utilization of their services as R&T Agent.

Rs.in lacs

Scheme As on As on As on31.03.03 31.03.04 31.03.05

TBF 4.37 – –

TYCF 6.82 – –

TTSF 2.37 – –

TSEF 1.33 – –

TIF 6.88 – –

TPEF 1.53 – –

TLSTF 0.94 – –

vi. Total percentage of broking business given and the brokeragepaid(and included in the cost of investments) to Associatebrokers is disclosed below. The brokerage paid to the Associatebrokers compare with that prevailing in the Capital market forbuying/selling of securities.

Rs. in Lacs

Name As on As on As on31.03.03 31.03.04 31.03.05

%ge Rs. %ge Rs. %ge Rs.

TataSecurities Ltd. 3.95 6.39 1.434.81 – –(Formerly Tata TDWaterhouse Securities Ltd.)

vii. The Fund has not undertaken any Underwriting obligationswith respect to any Public Issue of Associate Companies.During last 3 fiscal years the Fund has not subscribed to anyissue lead managed by an Associate Company

TBF : Tata Balanced Fund

TYCF : Tata Young Citizens’ Fund

TTSF : Tata Tax Saving Fund

TSEF : Tata Select Equity Fund

TIFR : Tata Income Fund (Regular Income Option)

TIFA : Tata Income Fund (Appreciation Option)

TPEF : Tata Pure Equity FundTLF : Tata Liquid Fund

TLSTF : Tata Life Sciences & Technology Fund

TGSFA : Tata Gilt Securities Fund (Appreciation Option)

TGSFR : Tata Gilt Securities Fund (Regular Income Option)

TSTBF : Tata Short Term Bond Fund

TGF : Tata Growth Fund

TIPF : Tata Income Plus Fund

TMIF : Tata Monthly Income Fund

TIFNA : Tata Index Fund Nifty

TIFSA : Tata Index Fund Sensex

TEOF : Tata Equity Opportunities Fund

TDBF : Tata Dynamic Bond Fund

TGSF : Tata Gilt Securities Fund

TIXF : Tata Index Fund

TEQPEF : Tata Equity P/E Fund

TMPF : Tata MIP Plus Fnd

TFRSTF : Tata Floating Rate Short Term Fund

TFRLTF : Tata Floating Rate Long Term Fund

TDYF : Tata Dividend Yield Fund

TISF : Tata Infrastructure Fund

TSIF : Tata Service Industries Fund

TFHFS1 : Tata Fixed Horizon Fund Series 1


41

XV. BORROWING BY THE MUTUAL FUND

In accordance with Regulation 44(2) of the SEBI (Mutual Funds)Regulations, 1996, to meet the temporary liquidity needs of theScheme for the purposes of repurchases / redemptions or incomedistribution to the Unitholders, the Fund / Scheme may borrow fromany Body Corporate including TAML and Commercial Banks, notmore than 20% of the net assets of the Scheme on satisfactory termsas to interest, security and collateral without encumbering its assets.The duration of such a borrowing shall not exceed a period of sixmonths

XVI. COMPUTATION OF NAV & VALUATION OF ASSETSi. Computation & Determination of Net Asset Value

Net Asset Value (“NAV”) of the Units shall be determined daily asof the close of each Business Day on which the Bombay StockExchange is open for trading.

NAV shall be calculated in accordance with the following formula :

Market Value of Scheme’s Investments + Accrued Income+ Receivables + Other Assets + Unamortised portion ofinitial issue expenses - Accrued Expenses - Payables - OtherLiabilities

NAV= ——————————————————————-Number of Units Outstanding

The computation of Net Asset Value, valuation of Assets,computation of applicable Net Asset Value (related price) for ongoingSale, Repurchase, Switch and their frequency of disclosure shallbe based upon a formula in accordance with the Regulations andas amended from time to time including by way of Circulars, PressReleases, or Notifications issued by SEBI or the Government ofIndia to regulate the activities and growth of Mutual Funds.

ii. NAV Information

The Scheme’s NAV will be available on all Business Days at theAuthorised Investor Service Centres. The Fund will endeavour topublish the Scheme’s NAV on all Business Days in atleast 2 DailyNewspapers (along with sale and repurchase price). In the eventNAV cannot be calculated and / or published, such as because ofthe suspension of trading on the Bombay Stock Exchange, duringthe existence of a state of emergency and / or a breakdown incommunications, the Board may suspend determination and / orpublication of the NAV of the Units.

NAV will also be updated on a daily basis on Association of MutualFund India (AMFI) website.

Sale Price = Applicable NAV *(1 + Sales Load, if any)

Repurchase Price = Applicable NAV *( 1 - Exit Load, if any)

Example : if the applicable NAV is Rs. 10.00; sales/entry load is 2per cent and the exit/repurchase load is 2 per cent then the salesprice will be Rs. 10.20 and the repurchase price will be Rs. 9.80.

iii. Valuation of Assets

NAV of the Scheme as stated in the foregoing clause for“Computation & Determination of NAV” will be determined by dividingthe net assets of the Scheme by the number of outstanding Unitson the valuation date.

Pursuant to Regulation 77 of the SEBI (Mutual Funds) Regulations,1996, the following investment valuation norms are applicable tothe Scheme:

1. Traded Securities :

1. The securities shall be valued at the last quoted closingprice on the stock exchange.

2. When the securities are traded on more that onerecognised stock exchange, the securities shall be valuedat the last quoted closing price on the stock exchangewhere the security is actively traded. It would be left to

the AMC to select the appropriate stock exchange, butthe reasons for the selection should be recorded in writing.There should however be no objection for all scrips beingvalued at the prices quoted on the stock exchange wherea majority in value of the investments are principally tradedsuch as the National Stock Exchange (NSE) or The StockExchange, Mumbai (BSE).

3. Once a stock exchange has been selected for valuationof a particular security, reasons for change of theexchange shall be recorded in writing by the AMC.

4. When on a particular valuation day, a security has notbeen traded on the selected stock exchange; the valueat which it is traded on another stock exchange may beused.

5. When a security (other than Government Securities) isnot traded on any stock exchange on a particular valuationday, the value at which it was traded on the selected stockexchange or any other stock exchange, as the case maybe, on the earliest previous day may be used providedsuch date is not more than thirty days prior to valuationdate in case of equity and equity related instruments and

15 days in case of debt securities.

2. Thinly Traded Securities :

(i) Thinly Traded Equity/Equity Related Securities :

When trading in an equity/equity related security (such asconvertible debentures, equity warrants, etc.) in a monthis less than Rs. 5 lacs and the total volume is less than50,000 shares, it shall be considered as a thinly tradedsecurity and valued accordingly.

Where a stock exchange identifies the “thinly traded”securities by applying the above parameters for thepreceding calendar month and publishes/provides therequired information along with the daily quotations, thesame can be used by the mutual funds.

If the share is not listed on the stock exchanges whichprovide such information, then it will be obligatory on thepart of the mutual fund to make its own analysis in linewith the above criteria to check whether such securitiesare thinly traded which would then be valued accordingly.

In case trading in an equity security is suspended upto 30days, then the last traded price would be considered forvaluation of that security. If an equity security is suspendedfor more than 30 days, then the Asset ManagementCompany/Trustees will decide the valuation norms to befollowed and such norms would be documented andrecorded.

(ii) Thinly Traded Debt Securities:

A debt security (other than Government Securities) shallbe considered as a thinly traded & security, if on thevaluation date there are no individual trades in that securityin marketable lots (current Rs. 5 crore) on any stockexchange.

A thinly traded debt security as defined above would bevalued as per the norms set for non-traded debt security.

3. Non Traded Securities :

When a security (other than Government Securities) is not tradedon any stock exchange for a period of 30 days (15 days in caseof debt security) prior to the valuation date the scrip must betreated as a ‘non traded’ security.

Unlisted Equity Shares will be valued in accordance with thecriteria laid down in SEBI circular no. MFD/CIR03/526/2002dated May 9, 2002.


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VALUATION OF NON-TRADED / THINLY TRADED SECURITIES

Non traded/ thinly traded securities shall be valued “in good faith”by the asset management company on the basis of the valuationprinciples laid down below :

(i) Non-traded / thinly traded equity securities:

(a) Based on the latest available Balance Sheet, net worthshall be calculated as follows :

(b) Net Worth per share = [share capital + reserves (excludingrevaluation reserves) – Misc. expenditure and DebitBalance in P&L A/c] Divided by No. of Paid up Shares.

(c) Average capitalisation rate (P/E ratio) for the industry basedupon either BSE or NSE data (which should be followedconsistently and changes, if any noted with properjustification thereof) shall be taken and discounted by 75%i.e. only 25% of the Industry average P/E shall be taken ascapitalisation rate (P/E ratio). Earnings per share of thelatest audited annual accounts will be considered for thispurpose.

(d) The value as per the net worth value per share and thecapital earning value calculated as above shall be averagedand further discounted by 10% for ill-liquidity so as to arriveat the fair value per share.

(e) In case the EPS is negative, EPS value for that year shallbe taken as zero for arriving at capitalised earning.

(f) In case where the latest balance sheet of the company isnot available within nine months from the close of the year,unless the accounting year is changed, the shares of suchcompanies 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 valuershall be appointed for the valuation of the said security.

(ii) (a) Non Traded /Thinly Traded Debt Securities of Upto 182Days to Maturity :As the money market securities are valued on the basis ofamortization (cost plus accrued interest till the beginning of the dayplus the difference between the redemption value and the costspread uniformly over the remaining maturity period of theinstruments) the same process should be adopted for non-tradeddebt securities with residual maturity of upto 182 days, in theabsence of any other standard benchmarks in the market. All othernon traded Non Government debt instruments should be valuedusing the method suggested in (ii)(b) hereof.

(ii) (b) Non Traded/ Thinly Traded Debt Securities of Over 182Days to Maturity.For the purpose of valuation, all Non Traded Debt Securities wouldbe classified into “Investment grade” and “Non Investment grade”securities based on their credit ratings. The non-investment gradesecurities would further be classified as “Performing” and “NonPerforming” assets

All Non Government investment grade debt securities, classifiedas not traded, shall be valued on yield to maturity basis asdescribed below.

All Non Government non investment grade performing debtsecurities would be valued at a discount of 25% to the facevalue

All Non Government non investment grade non performing debtsecurities would be valued based on the provisioning norms.

The approach in valuation of non traded debt securities is based onthe concept of using spreads over the benchmark rate to arrive atthe yields for pricing the non traded security.

The Yields for pricing the non traded debt security would be arrivedat using the process as defined below.

Step A

A Risk Free Benchmark Yield is built using the government securities(GOI Sec) as the base. GOI Secs are used as the benchmarks asthey are traded regularly; free of credit risk; and traded acrossdifferent maturity spectrums every week.

Step B

A Matrix of spreads(based on the credit risk) are built for markingup the benchmark yields. The matrix is built based on tradedcorporate paper on the wholesale debt segment of an appropriatestock exchange and the primary market issuances. The matrix isrestricted only to investment grade corporate paper.

Step C

The yields as calculated above are Marked-up/Marked-down for ill-liquidity risk

Step D

The Yields so arrived are used to price the portfolio

METHODOLOGY

A. Construction of Risk Free Benchmark

Using Government of India dated securities, the Benchmarkshall be constructed as below :

Government of India dated securities will be grouped intothe following duration buckets viz., 0.5-1 years, 1-2 years,2-3 years, 3-4 years, 4-5 years, 5-6 years and 6 years andthe volume weighted yield would be computed for eachbucket. Accordingly, there will be a benchmark YTM foreach duration bucket.

The benchmark as calculated above will be set weekly,and in the event of any change in the Reserve Bank ofIndia (RBI) policies affecting interest rates during the week,the benchmark will be reset to reflect any change in themarket conditions.

Note : The concept of duration over tenor has been chosenin order to capture the reinvestment risk. It is intended togradually move towards a methodology that incorporatesthe continuous curve approach for valuation of suchsecurities. However, in view of the current lack of liquidityin the corporate bond markets, a continuous curveapproach to valuation would be necessarily based onlimited data points, and this would result in out of linevaluations. As an interim methodology therefore it isproposed that the Duration Bucket approach be adoptedand continuously tracked in order to fine tune the durationbuckets on a periodic basis. Over the next few years it isexpected that with the deepening of the secondary markettrading, it would be possible to make a gradual move fromthe Duration Bucket approach towards a continuous curveapproach.

B . Building a Matrix of Spreads for Marking-up the Benchmark Yield

Mark up for credit risk over the risk free benchmark YTM ascalculated in step A, will be determined using the trades ofcorporate debentures/bonds of different ratings. All trades onappropriate stock exchange during the fortnight prior to thebenchmark date will be used in building the corporate YTM andspread matrices. Initially these matrices will be built only forcorporate securities of investment grade. The matrices aredynamic and the spreads will be computed every week. Thematrix will be built for all duration buckets for which thebenchmark GOI matrix is built to effectively link the corporatematrix with the GOI securities matrix. Accordingly:


43

All traded paper (with minimum traded value of Rs. 1 crore)will be classified by their ratings and grouped into 7 durationbuckets; for rated securities, the most conservative publiclyavailable rating will be used;

For each rating category, average volume weighted yieldwill be obtained both from trades on the appropriate stockexchange and from the primary market issuances

Where there are no secondary trades on the appropriatestock exchange in a particular rating category and noprimary market issuances during the fortnight underconsideration, then trades on appropriate stock exchangeduring the 30 day period prior to the benchmark date willbe considered for computing the average YTM for suchrating category;

If the matrix cannot be populated using any or all of theabove steps, then credit spreads from trades on appropriatestock exchange of the relevant rating category over theAAA trades will be used to populate the matrix;

In each rating category, all outliers will be removed forsmoothening the YTM matrix;

Spreads will be obtained by deducting the YTM in eachduration category from the respective YTM of the GOIsecurities;

In the event of lack of trades in the secondary market andthe primary market the gaps in the matrix would be filledby extrapolation. If the spreads cannot be extrapolated forthe reason of practicality, the gaps in the matrix will befilled by carrying the spreads from the last matrix.

C. Mark-up/Mark-down YieldThe Yields calculated would be marked-up/marked –down toaccount for the ill-liquidity risk, promoter background, financecompany risk and the issuer class risk. As the level of ill-liquidityrisk would be higher for non rated securities the marking processfor rated and non rated securities would be differentiated asfollows

C(I) Adjustments for Securities rated by external rating agencies

The Yields so derived out of the above methodology couldbe adjusted to account for risk mentioned above.

A Discretionary discount/premium of upto +100/-50 BasisPoints for securities having a duration of upto 2 years andupto +75/- 25 Basis Points for securities having durationhigher than 2 years will be permitted to be provided for theabove mentioned types of risks. The rationale for the abovediscount structure is to take cognizance of the differentialinterest rate risk of the securities. This structure will bereviewed periodically.

C (II) Adjustments for Internally Rated Securities

To value an un-rated security, the fund manager has toassign an internal credit rating, which will be used forvaluation. Since un-rated instruments tend to be moreilliquid than rated securities, the yields would be markedup by adding +50 basis point for securities having a durationof upto two years and +25 basis point for securities havingduration of higher than two years to account for the illiquidityrisk.

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 thevalue as obtained by valuing the security to final maturity and valuingthe security to call option.

In case there are multiple call options, the lowest value obtainedby valuing to the various call dates and valuing to the maturity dateis to be taken as the value of the instrument.

Securities with Put optionThe securities with put option shall be valued at the higher of thevalue as obtained by valuing the security to final maturity and valuingthe security to put option

In case there are multiple put options, the highest value obtainedby valuing to the various put dates and valuing to the maturity dateis 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 wouldbe deemed to mature on the Put/Call day and would be valuedaccordingly.

(ii) (c) Government securities Government securities will be valuedat prices released by an agency suggested by AMFI.

(iii) Liquid Securities :

(a) Aggregate value of “illiquid securities” of scheme, which aredefined as non-traded, thinly traded and unlisted equity shares,shall not exceed 15% of the total assets of the scheme and anyilliquid securities held above 15% of the total assets shall beassigned zero value.

Provided that in case any scheme has illiquid securities in excessof 15% of total assets as on September 30, 2000 then such ascheme shall within a period of two years bring down the ratioof illiquid securities within the prescribed limit of 15% in thefollowing time frame:

(i) all the illiquid securities above 20% of total assets of thescheme shall be assigned zero value on September 30,2001.

(ii) All the illiquid securities above 15% of total assets of thescheme shall be assigned zero value on September 30,2002.

(b) All funds shall disclose as on March 31 and September 30 thescheme-wise total illiquid securities in value and percentage ofthe net assets while making disclosures of half yearly portfoliosto the unitholders. In the list of investments, an asterisk markshall also be given against all such investments which arerecognised as illiquid securities.

(c) Mutual Funds shall not be allowed to transfer illiquid securitiesamong their schemes w.e.f. October 1, 2000.

(d) In respect of closed ended funds, for the purposes of valuationof illiquid securities, the limits of 15% and 20% applicable toopen-ended funds should be increased to 20% and 25%respectively.

(e) Where a scheme has illiquid securities as at September 30,2000 not exceeding 15% in the case of an open-ended fundand 20% in the case of closed fund, the concessions of givingtime period for reducing the illiquid security to the prescribedlimits would not be applicable and at all time the excess over15% or 20% shall be assigned nil value.

Valuation of Money Market Instruments:Investments in call money, bills purchased under rediscountingscheme and short term deposits with banks shall be valued at costplus accrual; other money market instruments shall be valued atthe yield at which they are currently traded. For this purpose, non-traded instruments that is instruments not traded for a period ofseven days will be valued at cost plus interest accrued till thebeginning of the day plus the difference between the redemptionvalue and the cost spread uniformly over the remaining maturityperiod of the instruments.


44

Valuation of Derivative Product:1. The traded derivative shall be valued at market price in

conformity with the stipulations of sub clauses (I) to (V) of clause1 of the eighth Schedule to the Securities and Exchange Boardof India (Mutual Funds) Regulations, 1996, as amended bySEBI circular no. MFD/CIR/8/92/2000 dated September, 18,2000.

2. The valuation of untraded derivatives shall be done inaccordance with the valuation method for untraded investmentsprescribed in sub clauses (I) and (II) of clause 2 of the EighthSchedule to the Securities and Exchange Board of India(Mutual Funds) Regulations, 1996, as amended by SEBIcircular no. MFD/CIR/8/92/2000 dated September, 18, 2000.

XVII. REPURCHASE, RESALE & SWITCH OF UNITS

i. Relevant NAV for Repurchase, Resale & Switch of UnitsU/S 88 of Income Tax Act 1961 repurchase of units of Tata TaxSaving Fund can be done any time after the expiry of lock-in periodi.e. three years from the date of investment.

The relevant NAV for Repurchase, Sale, Switch will be the closingNAV of the business day of receipt of the Repurchase/Switch/Salerequest provided. The date of receipt of a request for fresh Sale,Repurchase, Switch will be the actual business day of the Mailreceipt at any of the Authorised Investor Service Centers stated inthis offering circular and / of in-person request if received upto3.00pm on any business day.

Valid application for “switch out” shall be treated as redemptionand for “switch in” shall be treated as purchases and therelevant NAV for “switch in” and “switch out” shall beapplicable accordingly.

Outstation cheques/demand drafts will not be accepted at centersother than at Mumbai.

Relevant NAV for subscription application received along with andoutstation cheque/demand draft will be NAV of the closing of theday on which cheque/demand draft is credited to account.

ii. Repurchase of Units of Tata Tax Saving FundRequests for repurchase can be submitted on any Business Days ofthe Month, at our Authorised Investor Service Centres (mentioned inthis Offer Document). The repurchase request can be made for Rs.500/- / 50 units or in multiples of Rs.500/- / 50 Units or for all theUnits. The Units will be repurchased (sold back to the Fund) /redeemed at the relevant NAV (as stated in the foregoing clause(s)for “Relevant NAV for repurchase, resale & switch of units”), less anyadministrative cost and other charges termed as Repurchase Loadand which shall be the applicable Repurchase price / NAV relatedprice. The repurchase price will be in accordance with Regulation49(3) of the Securities Exchange Board of India (Mutual Funds)Regulations, 1996, which shall not be lower than 95% of the NAVand further that the difference between the sale and repurchase priceshall not exceed 7% calculated on the sale price. The TrusteeCompany may however, from time to time review and modify therepurchase load for each choice of investment as stated in theforegoing clause on “Unitholder Transaction Expenses”. The Units ifpartially repurchased would be subtracted from the Unit balance ofthat Unitholder on “First In First Out” basis i.e. the Units that wereoffered / allotted first would be the first to be repurchased unlessotherwise indicated by unitholders. In case amount is withdrawn, thesame will be converted into Units at the applicable Repurchase price/ NAV related price and the number of Units so arrived at will besubtracted from the Unit balance of that Unitholder on “First In FirstOut” basis unless otherwise indicated by unitholders. The repurchasewould be permitted to the extent of credit balance in the Unitholder’saccount.

The repurchase cheque will be issued in the name of the firstunitholder. Under normal circumstances, the Fund will ensure that

the repurchase cheques are despatched within ten Business Daysfrom the date of receipt of the repurchase request. In the event ofpartial repurchase, the Fund shall despatch the revised AccountStatement for the balance number of Units still being held by theUnitholder along with the repurchase cheque. Credit balances in theaccount of a Non- Resident Unitholder on maturity or otherwise,(where RBI final approval and any other approval (if any required)has been obtained) may be repurchased by the Fund by suchUnitholder in accordance with the procedure described above andalso subject to any procedures laid down by RBI and any other agency.Such repurchase proceeds will be paid by means of a Rupee chequepayable to the NRE/ NRO account of the Unitholder or subject to RBIprocedures and approvals, such payment in Indian Rupees will beconverted into US Dollars or into any other currency, as may bepermitted by RBI, at the rate of exchange prevailing at the time ofremittance and will be despatched at the applicants’ risk, or at therequest of the applicants’ will be credited to their NRE/ NRO Accounts,details of which are to be furnished in the space provided for thispurpose in the Repurchase Form. The Fund will not be liable for anydelays or for any loss on account of exchange fluctuations, whileconverting the rupee amount in US Dollar or any other currency. TheFund (if required) may also make arrangements to obtain RBIapprovals on a case-by-case basis on behalf o the Unitholder, subjectto the Unitholder providing the Fund with the necessary documentsrequired.

Securities Transaction Tax (STT) on redemption:As per the income Tax Act 1961, in case of an open ended equityscheme, securities transaction tax (STT) of 0.20% (plus educationcess @2%) is payable for sale of units to the mutual fund. This isillustrated below:

Repurchase Price Rs. 11.00

Repurchase Units 1000

Repurchase Price Rs. 11000

Securities Transaction Tax (STT) Rs. 22.00(On redemption @ 0.20% of redemption value)

Education Cess (EC) on STT@ 2% 0.44

Total Tax (STT + EC) Rs. 22.44

Net Amount Payable to Investors Rs. 10977.56(Rs. 11000 - Rs. 22.44)

iii. Possible deferral of repurchase requests and compulsoryrepurchase

Whilst every effort will be made to ensure that the Scheme will havesufficient liquidity to enable the repurchase cheques to be collected/despatched within the deadline stated in the foregoing Clause,Unitholders should note that where the Scheme is obliged to arrangefor the disposal of the underlying securities / borrow, in order to satisfyredemption / repurchase requests, Unitholders may experience somedelays in receiving repurchase cheques, reflecting the time involvedin settling the underlying sales of securities / borrowing. However, inany case, the Fund will ensure that the collection/despatch ofrepurchase cheques is not delayed beyond ten working days (whenTMF is open for business) from the date of receipt of the repurchaserequest in accordance with Regulation 53(b) of the SecuritiesExchange Board of India (Mutual Funds) Regulations, 1996.

The Fund may mandatorily redeem all the Units of any Unitholder:

if the value of the account falls below the minimum Accountbalance of Rs.500/- (based on prevailing NAV) and / or 50 Units,due to normal repurchase / switch and the Unitholder fails toinvest sufficient funds or to purchase sufficient Units to bringthe value of the account upto Rs.500/- (based on prevailingNAV) and / or 50 Units or more, within 30 days after a writtenintimation in this regard is sent by the Fund to that Unitholder;or


45

where the Units are held by a Unitholder in breach of anyregulations.

iv. Spread between Sale and Repurchase PriceThe spread between the sale and repurchase price will be inaccordance with Regulation 49(3) of the Securities & Exchange Boardof India (Mutual Funds) Regulations, 1996. Accordingly, therepurchase price shall not be lower than 93% of the NAV while thesale price shall not be higher than 107% of the NAV and further thatthe difference between the sale and repurchase price shall not exceed7% calculated on the Sale price. Please also refer to the Clause on“Unitholder Transaction Expenses”.

v. Sale of Units of Tata Tax Saving Fund on an ongoing basis

Requests for fresh Units can be submitted on any Business Day ofthe Month at our Authorised Investor Service Centres, by filling in theprescribed form. Unitholders can also subscribe additional Units undertheir existing Folio. Fresh subscription of Units will be at the relevantNAV (as stated in the foregoing clause(s) for “Relevant NAV forRepurchase / Resale & Switch of Units”) plus a Sales Load, whichshall be the applicable sale price. The Offer price / NAV related pricewill be in accordance with Regulation 49(3) of the Securities &Exchange Board of India (Mutual Funds) Regulations, 1996, whichshall not be higher than 107% of the NAV and further that the differencebetween the sale and repurchase price shall not exceed 7% calculatedon the sale price. The Trustee Company may however, from time totime review and modify the sale load for each choice of investmentas stated in the foregoing clause on “Unitholder TransactionExpenses”.

Sale on an ongoing basis by any investor shall individually be for aminimum of Rs.500/- and in multiples of Re.1/- thereafter while for anexisting unitholder it shall be for Rs. 500/- and in multiples of Re.1/-or as may be decided by the Asset Management Company / TrusteeCompany from time to time. The Trustee Company may howeverstipulate a different minimum amount per application for groupinvestment (e.g. investment by employees of any company, membersof co-operative society, etc.). Requests for Sale of Units on an ongoingbasis can be made only by specifying the amount to be invested andnot the number of Units in the prescribed form. The total number ofUnits will be determined with reference to the applicable sale price,and fractional Units may be created. Fractional Units will be computedand accounted for upto three decimal places. Units will be allotted onthe date of receipt/ realisation of cheque (deemed date of allotment).A (fresh) Account Statement will be despatched to the address asindicated in the prescribed form by the investor, reflecting the updatedholding of the Unitholder after every transaction of ongoing / freshsale. Under normal circumstances, the Account Statement will bedespatched after three Business Days or after clearance of cheque(whichever is later). However, the despatch of Account Statementshall not be delayed beyond six weeks from the date of receipt ofrequest from the unitholder as per Regulation 36 of SEBI Regulations.

vi. Switch of Units within the Funds / Schemes / Plans of TataMutual Fund

U/S of Income Tax Act 1961 repurchase of units of Tata Tax SavingFund can be done any time after the expiry of lock-in period i.e. threeyears from the date of investment.

The Unitholders under Tata Tax Saving Fund may after the expiry oflock-in period exchange their Units for Units of the other Funds /Schemes / Plans in Tata Mutual Fund (the existing Funds / Schemes/ Plans and others as may be announced / launched from time totime) on the basis of the terms / rules / Regulations / provisionsprevalent for the relevant Funds / Schemes / Plans, of the respectiveUnits (of the relevant Funds / Schemes / Plans) to be exchanged.

Requests for switch may be submitted on any Business Day of theMonth, at our Authorised Investor Service Centres. The Units will beswitched at the relevant NAV (as stated in the foregoing clause(s) for

“Relevant NAV for repurchase / resale & switch of units”), plus anyadministrative cost and other charges and which shall be theapplicable resale / NAV related price. The Units thus switched wouldbe subtracted from the Unit balance of that Unitholder on “First InFirst Out” basis i.e. the Units that were offered / allotted first wouldbe the first to be switched unless otherwise indicated by unitholders.In case amount is switched the same will be converted into Units atthe applicable resale / NAV related price and the number of Units soarrived at will be subtracted from the Unit balance of that Unitholderon “First In First Out” basis unless otherwise instructed by theUnitholder. The minimum amount / number of Units that may beexchanged for amount / Units of the other Funds / Schemes / Plansin Tata Mutual Fund will be the minimum amount / number of Unitsas applicable to the relevant Funds / Schemes / Plans to be exchangedof this Scheme.

Unitholder should note that each exchange represents the sale ofUnits from one Scheme (which may produce a capital gains or loss)and the purchase of Units in another Scheme and for NRI/ FIIunitholder is also subject to any final approval and procedures laiddown by RBI and any other agency (if any).

vii. Suspension of ongoing Sale, Repurchase or Switch of Units

The ongoing sale, repurchase or switch of Units may be suspendedtemporarily or indefinitely under any of the following circumstances:

Stock markets stop functioning or trading is restricted.

Periods of extreme volatility in the capital / stock markets, whichin the opinion of the Asset Management Company is prejudicialto the interests of the Unitholders.

A complete breakdown or dislocation of business in the majorfinancial markets.

Natural calamities.

Declaration of war or occurrence of insurrection, civil commotionor any other serious or sustained financial, political or industrialemergency or disturbance.

SEBI, by order, so directs.

On a requisition made by three-fourths of the Unitholders.

The Fund also reserves the right, to withdraw sale of Units inthe Scheme temporarily or indefinitely, if the Asset ManagementCompany / Trustee Company views that increasing the Scheme’ssize further may prove detrimental to the existing Unitholders ofthe Scheme. An offer for fresh subscription of Units is not bindingon and may be rejected by the Asset Management Company /Trustee Company, unless it has been confirmed in writing bythe Asset Management Company / Trustee Company andpayment has been received.

Suspension of repurchase facility under the scheme shall bemade applicable only after the approval from the Board ofDirectors of the AMC and Trustee Company. The approval fromthe AMC & Trustee Company Boards giving details ofcircumstances and justification for the proposed actions shallbe informed to SEBI in advance.

viii. Centres where repurchase/resale/switch requests can begiven :

Authorised Investor Service Centres :For the list of Authorised Investor Service Centres, please referto the Back Cover Page of this Offering Circular.

All locations from where an empanelled distributor of the AMCis empowered and able to use the transaction screens providedby the Registrar, in association with the banking facilitiesoffered by the AMC, in accordance with procedures laid out byand agreed with our Registrar, to submit electronic transactionswithin the cutoff time.


46

ix. Unclaimed Redemption/Dividend Amount

The unclaimed Redemption amount and Dividend amount may bedeployed by the Mutual Fund in Call Money Market or Money MarketInstruments only and the investor who claims these amounts duringa period of three years from the due date shall be paid at the prevailingNet Asset Value. After a period of three years, this amount will betransferred to a pool account and the investor can claim the amountat NAV prevailing at the end of third year. The income on such fundswill be used for the purpose of investor education. The AMC willmake continuous efforts to remind the investors through letters totake their unclaimed amount. Further, the investment managementfee charged by the AMC for managing unclaimed amounts shall notexceed 50 basis points.

XVIII. ACCOUNTING POLICIES

Accounts and Audit

TAML will keep and maintain the books of accounts, records anddocuments for the Scheme so as to explain its transactions and todisclose the financial position of the Scheme. The Board of TAMLshall arrange for the financial statements of the Scheme to beaudited as of every 31st March and shall prepare an annual reportand annual statement of account. The Board of TTCPL shall havethe financial statements for the Scheme audited by such CharteredAccountant(s) as may be appointed for that purpose by the TrusteeCompany. S.B.Billimoria & Co. Chartered Accountants, have beenappointed in such capacity.

Pursuant to Regulation 50 of the SEBI (Mutual Funds) Regulations,1996, the following accounting policies are applicable to theScheme:

a) For the purposes of the financial statements, the Fund shallmark all investments to market and carry investments in thebalance sheet at market value. However, since the unrealisedgains arising out of appreciation on investments cannot bedistributed, provision shall be made for exclusion of this itemwhen arriving at distributable income.

b) In respect of all interest-bearing investments, income shall beaccrued on a day to day basis as it is earned. Therefore whensuch investments are purchased, interest paid for the periodfrom the last interest due date upto the date of purchase shallnot be treated as a cost of purchase but shall be debited toInterest Recoverable Account. Similarly, interest received atthe time of sale for the period from the last interest due dateupto the date of sale shall not be treated as an addition to salevalue but shall be credited to Interest Recoverable Account.

c) In determining the holding cost of investments and the gainsor loss on sale of investments, the “average cost” method shallbe followed.

d) Transactions for purchase or sale of investments shall berecognised as of the trade date and not as of the settlementdate, so that the effect of all investments traded during afinancial year are recorded and reflected in the financialstatements for that year. Where investment transactions takeplace outside the Stock Market, for example, acquisitionsthrough private placement or purchases or sales throughprivate treaty, the transaction would be recorded, in the eventof a purchase, as of the date on which the Scheme obtainsany enforceable obligation to pay the price or, in the event ofa sale, when the Scheme obtains an enforceable right to collectthe proceeds of sale or an enforceable obligation to deliverthe instruments sold.

e) Where income receivable on investments has been accruedand has not been received for a period of 3 months beyondthe due date, provision shall be made by debit to the revenueaccount for the income so accrued and no further accrual ofincome shall be made in respect of such investment.

f) When in the case of an open-ended Scheme (like the presentScheme) Units are sold, the difference between the sale priceand the face value of the Unit, if positive, shall be credited toreserves and if negative shall be debited to reserves, the facevalue being credited to Capital Account. Similarly, when inrespect of such a Scheme (like the present Scheme), Unitsare repurchased, the difference between the purchase priceand face value of the Units, if positive shall be debited toreserves and if negative, shall be credited to reserves, theface value being debited to the Capital Account.

g) In the case of an open-ended Scheme (like the presentScheme), when Units are sold an appropriate part of the saleproceeds shall be credited to an Equalisation Account andwhen Units are repurchased an appropriate amount shall bedebited to Equalisation Account. The net balance on thisaccount should be credited or debited to the Revenue Account.The balance on the Equalisation Account debited or creditedto the Revenue Account should not decrease or increase thenet income of the Fund but is only an adjustment to distributablesurplus. It shall therefore be reflected in the Revenue Accountonly after the net income of the Fund is determined.

h) The cost of investments acquired or purchased would includebrokerage, stamp charges and any charge customarily includedin the broker’s bought note. In respect of privately placed debtinstruments any front-end discount offered should be reducedfrom the cost of the investment.

i) To provide appropriate details of the Schemewise deploymentof the assets of the Fund, certain accounting policies andstandards in accordance with the appropriate guidance notesissued by the Institute of Chartered Accountants of India maybe adopted by TAML, and amended from time to time. TheTrustee Company/ TAML may alter these above statedaccounting policies and standards from time to time, and alsoto the extent the guidance notes issued by the Institute ofChartered Accountants of India, and the SEBI (Mutual Funds)Regulations, 1996 change, so as to permit the Scheme to givea true and fair view of its state of affairs. As such the accountingpolicies and standards, and the preparation of the annual reportand annual statement of account of the Scheme will be inaccordance with SEBI (Mutual Funds) Regulations, 1996,including Schedule IX and XI thereof.

XIX. TAX TREATMENT OF INVESTMENTS IN MUTUAL FUNDS

Certain tax benefits as described below are available, under presenttaxation laws to the Unitholders holding the Units as an investment.The information set out below is included for general informationpurposes only and does not constitute legal or tax advice. In viewof the individual nature of the tax consequences, each investor isadvised to consult his or her own tax consultant with respect tospecific tax implications arising out of their participation in theScheme. Income Tax benefits to the mutual fund and to theunitholder is in accordance with the prevailing tax laws as certifiedby S.B. Billimoria & Co., Chartered Accountants, the Auditors ofthe Scheme.

i. TAX BENEFITS TO THE MUTUAL FUND

Tata Mutual Fund is a Mutual Fund registered with the Securitiesand Exchange Board of India and hence the entire income of theFund will be exempt from income-tax in accordance with theprovisions of Section 10(23D) of the Income-tax Act, 1961 (the Act).

The Fund is entitled to receive all income without any deduction oftax at source under the provisions of Section 196(iv), of the Act.

However, as per the taxation laws in force, read with Chapter VII ofthe Finance (No. 2) Act, 2004 pertaining to Securities TransactionTax (STT), it is provided that on income distribution, if any, made


47

by the Fund, on or after 1 April, 2004, to its Unitholders, beingIndividuals and Hindu Undivided Family, income-tax will be payableunder Section 115R of the Act, at the rate of 14.025 % (inclusive ofsurcharge and additional surcharge called Education Cess onincome-tax), and to other Unitholders at the rate of 22.44% (inclusiveof surcharge and additional surcharge called Education Cess onincome-tax), except, inter alia, in the case of open-ended equity-oriented funds, (i.e. such fund where the investible funds areinvested by way of equity shares in domestic companies to theextent of more than 50% of the total proceeds of such Fund), whereno such tax will be payable.

ii. TAX BENEFITS TO THE UNITHOLDERS

Income Tax

All Unitholders

Income received in respect of units of a mutual fund, where incomedistribution is made on or after 1 April, 2003, would be exempt fromincome-tax in the hands of the unitholders under Section 10(35) ofthe Act.

Tax Deduction at Source

All Unitholders

In view of the exemption of income in the hands of the unitholders,no income tax is deductible at source, on income distribution by theMutual Fund, under the provisions of Sections 194K and 196A ofthe Act.

iii. Capital Gains Tax

All Unitholders

Under Section 10(38) of the Act, capital gains arising on transfer ofa long-term capital asset held for a period of more than twelvemonths, inter alia, being a unit of an equity-oriented fund (as definedtherein) would be exempt from income-tax, if sale of such unit ismade on or after 1st October, 2004, and such transaction has beenchargeable to securities transaction tax under Chapter VII of theFinance (No. 2) Act, 2004 pertaining to Securities Transaction Tax(STT). The Finance Act, 2005 has increased the STT rates from0.15% to 0.20% on sale of units to the mutual fund and from 0.075%to 0.10% for delivery-based sale through stock exchange.

Under Section 54EC of the Act and subject to the conditions specifiedtherein, taxable capital gains, arising on transfer of a long- termcapital asset, shall not be chargeable to tax to the extent such capitalgains are invested in certain notified bonds within six months fromthe date of transfer. No deduction from the amount of income withreference to such investment shall be allowed under section 80Cafter the 1st day of April 2005.

Under Section 54ED of the Act and subject to the conditions specifiedtherein, taxable capital gains (subject to the exemption of long-term capital gains provided for in section 10(38) of the Act, discussedelsewhere in this Statement) arising from transfer of long termassets, inter alia, being listed securities or units shall not bechargeable to tax to the extent such gains are invested in acquiringequity shares forming part of an “eligible issue of share capital”within six months from the date of transfer of the long-term assets.Eligible issue of share capital has been defined as an issue of equityshares which satisfies the following conditions:

the issue is made by a public company formed andregistered in India; and

the shares forming part of the issue are offered forsubscription to the public.

No deduction from the amount of income with reference to suchinvestment shall be allowed under section 80C after the 1st day ofApril 2005.

Under Section 54F of the Act and subject to the conditions specifiedtherein, in the case of an individual or a HUF, capital gains (subjectto the exemption of long-term capital gains provided for in section10(38) of the Act, discussed elsewhere in this Statement) arisingon transfer of a long term capital asset (not being a residential house)are not chargeable to tax if the entire net consideration received onsuch transfer is invested within the prescribed period in a residentialhouse. If part of such net consideration is invested within theprescribed period in a residential house, then such gains would notbe chargeable to tax on a proportionate basis. For this purpose, netconsideration means full value of the consideration received oraccruing as a result of the transfer of the capital asset as reducedby any expenditure incurred wholly and exclusively in connectionwith such transfer.

The following amounts would be deductible from the full value ofconsideration, to arrive at the amount of capital gains :

• cost of acquisition of Units (excluding the Securities TransactionTax, if any paid on acquisition) as adjusted by Cost InflationIndex notified by the Central Government in case of long termcapital gain, and

• expenditure incurred wholly and exclusively in connection withsuch transfer.

Under the provisions of Section 94(7) of the Act, loss arising onacquisition/sale/transfer of Units, which are acquired/sold/transferswithin three months prior/after the record date (i.e. the date fixedby the Mutual Fund for the purposes of entitlement of the Unitholdersto receive the income or additional units without any consideration,as the case may be) and sold within nine months after the recorddate, shall be ignored for the purpose of computing incomechargeable to tax to the extent of exempt income received orreceivable on such Units.

Under the provisions of Section 94(8) of the Act, where units whichare bought and additional units are allotted without any paymentwithin three months prior to the record date, which are sold withinnine months after the record date, the loss arising on sale on suchunits bought shall be ignored for the purpose of computing incomechargeable to tax and such loss shall be treated as the cost ofacquisition of such additional units.

Foreign Institutional Investors

Long-term capital gains on sale of Units, other than units of anequity oriented fund referred to above, would be taxed at the rateof 10% under Section 115AD of the Act. Such gains, would becalculated without indexation of cost of acquisition.

Short-term capital gains on sale of units of an equity-oriented fundarising after 1 October 2004, would also be taxable under Section111A of the Act, at the rate of 10% if the sale of such units chargeableto securities transaction tax. Other short-term capital gains wouldbe taxed at the rate of 30% (subject to the concessional rate of taxprovided for in Section 111A of the Act, discussed elsewhere in thisStatement).

The above tax rates would be increased by applicable surcharge,in case of, non-corporate Unitholders, at the rate of 10% thereof,where their income exceeds Rs.10,00,000/- and at the rate of 2.5%thereof in case of all corporate Unitholders.

In all cases, additional surcharge at 2%, called Education Cess,will be levied on the aggregate of tax and applicable surcharge, socalculated.

Other UnitholdersLong-term capital gains in respect of Units, other than units of anequity oriented fund referred to above, held for a period of morethan twelve months, will be chargeable under Section 112 of theAct, at concessional rate of tax, at the rate of 20%, as increased by


48

the applicable surcharge. An additional surcharge at the rate of2%, called Education Cess, on the aggregate of tax and surchargeis to be levied under the Finance Act.

In case of resident Individuals and Hindu Undivided Families, wheretaxable income, as reduced by long-term capital gains, is below thebasic exemption limit, the long-term capital gains will be reduced tothe extent of the shortfall and only the balance long-term capitalgains will be subjected to the flat rate of income tax (plus applicablesurcharge and education cess).

However, where the tax payable on such long-term capital gains,computed before indexation, exceeds 10%, as increased by theapplicable surcharge and additional surcharge, being EducationCess, as provided by the Finance Act, of the amount of capital gains,such excess tax shall not be payable by the unitholder.

Short-term capital gains in respect of all Units, held for a period ofnot more than twelve months, will be aggregated with other incomeand taxed at rates of tax, including surcharge, applicable to normalincome. However Section 111A, provides that such gains, in respectof equity oriented fund, will be taxable only at 10% as increased bythe applicable surcharges, if such gains arise after 1st October,2004, and the sale of unit has been chargeable to the securitiestransaction tax.

Tax Deduction at Source

Domestic Unitholders

No income tax is deductible at source from income by way of capitalgains under the present provisions of the Act However, the provisionsof section 195 of the Act may apply to non-residents (other thanForeign Institutional Investors and long-term capital gains exemptunder section 10(38) of the Act).

Foreign Institutional Investors

Under Section 196D of the Act, no deduction shall be madefrom any income by way of capital gains, in respect of transferof securities referred to in Section 115AD of the Act.

Other Non-resident Unitholders

Part II of the First Schedule to the Act, provides for deduction of taxat source from taxable capital gains at the rate of 20%, where theyrelate to long-term capital gains unless a lower withholding taxcertificate is obtained from the tax authorities, and at the marginalrates, viz. at 30% in case of non-corporate Unitholders unless alower withholding tax certificate is obtained from the tax authorities,and at the rate of 40% unless a lower withholding tax certificate isobtained from the tax authorities, in case of foreign corporateUnitholders, in case of short-term capital gains. Surcharge onincome-tax will be levied at the rate of 10%, on such tax, in respectof non-corporate Unitholders, where their income exceedRs.10,00,000/- and at the rate of 2.5% thereof in case of all corporateUnitholders. An additional surcharge at the rate of 2% is also to belevied under the Finance Act in all cases on the aggregate of taxand surcharge, so calculated.

Deduction under section 80C

As per the Act, section 80C is inserted from the financial yearcommencing on and from April 01, 2005. As per the section, subjectto the provisions, an individual/HUF is entitled to a deduction fromGross Total Income upto Rs. 1,00,000/- (along with other prescribedinvestments) for amounts invested in any units of a mutual fundnotified under section 10(23D) of the Act, under any plan formulatedin accordance with such scheme as the Central Government maynotify.

Rebate under section 88E

Section 88E provides that where the total income of a personincludes income chargeable under the head “Profits and gains of

business or profession” arising from sale of units of equity orientedfunds, he shall get rebate equal to the securities transaction taxpaid by him in the course of his business. Such rebate is to beallowed from the amount of income tax in respect of suchtransactions calculated by applying average rate of income tax.

Securities Transaction Tax

All Unit holders

As per Chapter VII of the Finance (No. 2) Act, 2004 pertaining toSTT, the STT shall be payable by the seller at the rate of 0.15 percent on the sale of a unit of an equity-oriented fund to the mutualfund. The Finance Act 2005 has increased the rate from 0.15% to0.2%.

Other Benefit

Investments in Units of the Mutual Fund will rank as an eligibleform of investment under Section 11(5) of the Act read with Rule17C of the Income Tax Rules, 1962, for Religious and CharitableTrusts.

Tax Treaty Benefits

An investor has an option to be governed by the provisions of theAct or the provisions of a Tax Treaty that India has entered intowith another country of which the investor is a tax resident, whicheveris more beneficial.

Wealth Tax

Units held under the Schemes of the Fund are not treated as assetsas defined under Section 2(ea) of the Wealth Tax Act, 1957 andtherefore would not be liable to wealth tax.

Gift Tax

The Gift-tax Act, 1958, has ceased to apply to gifts made on orafter 1 October 1998. Gifts of Units, purchased under the Schemes,would therefore, be exempt from gift-tax.

XX. INVESTORS’ RIGHTS & SERVICES

i. Rights

An abridged schemewise annual report shall be mailed to allthe unitholders not later than six months from the date of closureof the relevant accounting year and the full annual report shallbe available for inspection at the head office of the fund and thecopy shall be made available to the unitholders on request onpayment of nominal fees if any.

Before expiry of one month from the close of each half year, i.e.on 31/3 and 30/9, the fund will publish its unaudited financialresults in the prescribed format as per SEBI Circular MFD/CIR/1/200/2001 dated April 20, 2001 in one national English dailynewspaper and in a newspaper in the language of the regionwhere the HO of the fund is situated.

Before expiry of one month from the close of each half year thatis on 31/3 and 30/9, the fund will publish its scheme portfolio inthe prescribed format as per SEBI Circular MFD/CIR/9/120/2000dated November 24, 2000 in one national English dailynewspaper and in a newspaper in the language of the regionwhere the HO of the fund is situated, or send a copy of thescheme portfolio to all the unitholders.

Unitholders under the Scheme have a proportionate right in thebeneficial ownership of the assets of TMF under the Scheme.

The Unitholders have a right to ask the Trustee Company aboutany information which may have an adverse bearing on theirinvestments, and the Trustee Company shall be bound todisclose such information to the Unitholders as stated in theclauses “NAV Information” & “Information regarding theScheme”.


49

The Unitholders have a right to receive audited annual reportsetting forth the financials of the Scheme as on 31st Marchalong with the entire portfolio in detail.

The appointment of the Asset Management Company can beterminated by majority of the trustees or by 75% of theunitholders of the scheme.

The trustees shall ensure that no change in the fundamentalattributes of any scheme or the trust or fees and expensespayable or any other change which would modify the schemeand affects the interest of unitholders, shall be carried outunless:-



Unitholders have the right to inspect all the documents listedunder the clause “Documents Available for Inspection”.

Under normal circumstances, the repurchase proceeds shallbe despatched within ten Business Days from the date ofrepurchase, while income distribution warrants shall bedespatched within 30 days of the declaration of income.

ii. Services

Register of Unitholders

A register of Unitholders shall be maintained at the office of theAsset Management Company and also at the office of theRegistrar and at such other places as the Trustee Companymay decide and such register shall be conclusive evidence ofownership. The register shall contain the following particulars :

The names and addresses of the Unitholders

The number of Units held by each such holder

The date from which the Unit(s) are held in the name of theholder(s)

The register may be closed for such time and for such period as theTrustee Company may determine so. However, the register shallnot remain closed for more than 45 business/ working days in anyone year. In the event of a closure of the register for a period orperiods, notice shall be given by way of publication in newspaper(s)or other media. Requests for fresh/ ongoing sales, repurchase,switch will not be accepted during the period when the register isclosed. Except when the register is closed, the register shall duringthe business hours subject to such reasonable restrictions as theTrustee Company may impose, but not less than two hours on eachbusiness day, be kept open for inspection by any Unitholder. Subjectto the provisions herein contained, the Trustee Company and TAMLshall neither receive notice in respect of any Unit of any trust express,implied, or constructive, nor shall they be bound to enter any suchnotice in respect of any Unit in the register except when so directedby a Court of Competent jurisdiction.

Each Unitholder will receive an updated Account Statement, alongwith a A. S. Number (for control purposes) each time fresh / ongoingsale, partial redemptions / repurchase / switch of Units are made orany other distributions (other than Income Distribution), if any, inrespect of Units are declared and paid. Fractional Units will becomputed and accounted for upto three decimal places.

iii. Information regarding the Scheme

TMF shall before the expiry of one month from the close of each halfyear i.e.31st March and 30th September publish, by means of an

advertisement in one English language national daily newspaper andin a vernacular language newspaper published in Mumbai, theScheme’s unaudited financial results an portfolio statements. TheBoard shall also make such periodic disclosures to the Unitholdersas are required by the SEBI Regulations and are essential to keepthem informed about any information which may have an adversebearing on the Scheme. As such, the disclosure of information, etc.of the Scheme will be in accordance with SEBI Regulations includingSchedule XI & XII thereof.

An abridged Schemewise annual report shall be mailed to allunitholders not later than six months from the date of closure of therelevant accounting year and the full annual report shall be availablefor inspection at TAML; a copy shall be made available to theunitholders on request, on payment of nominal Fees, if any. TheAnnual Report and abridged summary thereof shall contain detailsas specified in the Eleventh Schedule of the SEBI Regulations andsuch other details as are necessary for the purpose of providing atrue and fair view of the operations of the mutual fund; Provided thatthe abridged schemewise annual report mailed to unitholders neednot contain full portfolio disclosure, if the full accounts are publishedin newspapers, but should contain details of group companyinvestments such as the name of the company, the amount ofinvestment made in each company of the Group by each schemeand the aggregate investments made by all schemes in the groupcompanies of the sponsor.

The Annual Report of the Asset Management Company will also bedisplayed on the website of the AMC.

Annual Report, Half Yearly Results and Half Yearly PortfolioStatement of Mutual Fund will also be displayed on the website ofAMC and AMFI.

Mutual Funds can send account statements, annual report, portfoliostatements and other correspondence to the unit holders using e-mail as an alternate mode of communication, with the consent oftheir unitholders.

iv. Meeting and consent of UnitholdersPursuant to Clause 15 of Regulation 18 of the SEBI (Mutual Funds)Regulations, 1996 (the SEBI Regulations), the Trustee Company shallcall for a meeting and obtain the consent of the Unitholders of theScheme (entirely at the option of the Trustee Company, either at ameeting of the unitholders or through postal ballot or any other modeof communication in conformity with the Regulations and/or SEBIRegulations) under any of the following circumstances:

whenever required to do so by SEBI in the interest of theUnitholders.

upon the request of three-fourths of the Unitholders of theScheme.

if the Trustee Company determines to wind up the Scheme orprematurely redeem the units.

The trustees shall ensure that no change in the fundamentalattributes of any scheme or the trust or fees and expensespayable or any other change which would modify the schemeand affects the interest of unitholders, shall be carried outunless:-



No amendment to the Trust Deed shall be carried out withoutthe prior approval of SEBI and Unitholders approval would beobtained where it affects the interests of unitholders.


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v. Benefits to the UnitholdersAll benefits accruing / earned under the Scheme in respect of income( not included in NAV ), capital, reserves and surpluses, if any, at thetime of their declaration or otherwise under the Scheme shall beavailable only to the Unitholders who hold the Units at the time of its/ their declaration.

vi. Documents available for inspectionFollowing documents will be available for inspection by the prospectiveinvestors / Unitholders on all Business Days between 11.00 am and1.00 p.m. at the Office of Tata Asset Management Limited.

A copy of Memorandum & Articles of Association of TAML.

A copy of the Custodian Agreement.

Consent from the Auditors to act in the said capacity.

SEBI (Mutual Funds) Regulations, 1996.

A copy of the Offering Circular.

Copy of the Trust Deed.

Copy of Memorandum & Articles of Association of TrusteeCompany.

Copy of Investment Management Agreement.

Copy of Registration Certificate from SEBI.

Copy of Agreement with Registrars

Indian Trusts Act, 1882

XXI. INVESTOR GRIEVANCES REDRESSAL MECHANISMThe complaints by investors are usually received at Computer AgeManagement Services (P) Ltd.’s Authorised Investor Service Centres.If the complaints are queries like non-receipt of certificate, change ofaddress etc. which are only redressable by the Mumbai office theyare answered by the same. Complaints/ queries solvable at the localAuthorised Investor Service Centres are addressed accordingly.

A complete record of complaints received and attended is maintainedand a review is carried out periodically by TAML to ensure promptredressal of complaints.

Yearwise breakup of Investor Complaints

Up to Opening Letters Total Letters LettersBalance Received Attended Balance

31/03/2003 0 15373 15373 15364 9

31/03/2004 9 6966 6975 6975 0

31/03/2005 0 2287 2287 2287 0

31/05/2005 0 135 135 131 4

Conflict of interestThe Trustee Company, the Asset Management Company, theCustodian, the Registrar, any Associate, any Distributor, Dealer, othercompanies within the Tata group, etc. may from time to time act(individually and / or jointly) as manager, custodian, registrar,administrator, investment adviser, distributor or dealer or agent ormarketing associate, respectively in relation to, or be otherwiseinvolved in, other Schemes / Funds / Activities (in the same or differentcapacity) (to the extent permitted under various relevant Regulations),which may have similar investment objectives to those of the Scheme/ Fund. The Asset Management Company, may for example, makeinvestments for other permitted business activities or on its own behalfwithout making the same available to the Scheme / Fund. The AssetManagement Company/Trustee Company will, at all times, haveregard in such event to its obligations to act in the best interests ofthe Scheme / Fund so far as is practicable, having regard to itsobligations to other permitted business activities and will ensure thatsuch transactions are conducted with / by the Scheme / Fund purely

on commercial terms / on an arm’s length basis as principal toprincipal.

TAML may, utilise the services of the Companies stated in the clause“Associate Transactions” (& to whom selling commission has beenpaid/provided for their marketing efforts in mobilising subscription forthe units of the previous schemes of the Fund)and/or the Sponsors,Associates, other Companies within the TATA group, Employees ortheir relatives, etc. for the purpose of any securities transactions anddistribution and sale of Units / securities, provided that any deal insecurities through any broker associated with the Sponsors shouldnot be beyond 5% of the quarterly aggregate purchase and sale ofsecurities by TMF, as per SEBI Regulations and the brokerage orcommission paid as per prevailing market practice and/or approvedrates is disclosed in the half yearly annual accounts of the Fund .TAML may, invest in Units of the Funds / Schemes in TMF (the existingFunds / Schemes including the present Scheme and others as maybe announced / launched from time to time), only after full disclosureof its intention to invest has been made in the Offering Circulars.TAML shall not charge any fees on its investment in Units of theFunds / Schemes in TMF.

TAML shall not act as a Trustee of any Mutual Fund and shall notundertake any other business activities except activities in the natureof management and advisory services to offshore funds, pensionfunds, provident funds, venture capital funds, management ofinsurance funds, financial consultancy and exchange of research oncommercial basis, if any of such activities are not in conflict with theactivities of the Fund. Provided that TAML may itself or through itssubsidiaries undertake such activities if it satisfies SEBI that its keypersonnel, the systems, back office, bank and securities accountsare segregated activity wise and there exist systems to prohibit accessto inside information of various activities. Provided further that TAMLshall meet capital adequacy requirements, if any, separately for eachsuch activity and obtain separate approval, if necessary under therelevant Regulations. Please refer to the clauses on “The AssetManagement Company” and “Investment Limitations”.

XXII. PENALTIES PENDING LITIGATION OR PROCEEDINGS,FINDINGS OF INSPECTIONS OR INVESTIGATIONS FORWHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THEPROCESS OF BEING TAKEN BY ANY REGULATORYAUTHORITY

1. Cases of penalties awarded by SEBI Act or any of itsregulations against the Sponsor of the Mutual Fund or anycompany associated with the Sponsor in any capacity includingthe Asset Management Company, Trustee Company/Boardof Trustees, or any of the Asset Management Company andTrustee Company. For Sponsor and its associates, other thanthe penalties as mentioned above, the penalties for defaultsin respect of shareholders, debentureholders and depositorsshall also be disclosed. Additionally, penalties awarded for anyeconomic offence and violation of any securities laws shall bedisclosed.

A fine of Rs. 2 lacs has been paid by Tata Asset ManagementLtd. to SEBI (on behalf of the AMC and the Mutual Fund) fordisclosure of portfolio statement to Unitholders not being inthe exact format as prescribed by SEBI.

2. Pending material litigation proceedings incidental to thebusiness of the Mutual Fund to which the Sponsor of the MutualFund or any company associated with the Sponsor in anycapacity including the AMC, Board of Trustee/TrusteeCompany or any of the directors or key personnel is a party.Any pending criminal cases against the Sponsor or anycompany associated with the Sponsor in any capacity includingthe AMC, Board of Trustee/Trustee Company or any of thedirectors or key personnel should be also be disclosedseparately.


51

“SEBI has filed a writ petition before the Bombay High Courtseeking direction to the Additional Metropolitan Magistrate (theMagistrate) to expedite the case in a criminal complaint (foralleged insider trading) initiated by them earlier againstHindustan Lever Ltd. (HLL) and its five Executive Directorswho held such office in March 1996. Thereafter, the Magistratehas taken cognizance of SEBI’s complaint and has directedthe issue of summons to HLL and the five Executive DirectorsMr. S.M. Datta, a director of the Tata Trustee Company Pvt.Ltd., was one of the five Executive Directors of HLL who arebeing proceed against.”

3. Deficiency in the systems and operations of the Sponsor ofthe Mutual Fund or any company associated with the sponsorin any capacity including the AMC or the Trustee Companywhich SEBI has specifically advised to be disclosed in the offerdocument, or which has been notified by any other regulatoryagency, shall be disclosed. – NIL.

4. Enquiry/adjudication proceedings under the SEBI Act and theRegulations made thereunder, that are in progress against theSponsor of the Mutual Fund or any company associated withthe Sponsor in any capacity including the AMC, Board ofTrustee/Trustee Company or any of the Directors of keypersonnel of the Asset Management Company shall bedisclosed. – NIL.

MISCELLANEOUSStatements in this Offering Circular are, except where otherwisestated, based on the law and practice currently in force in India and

are subject to changes therein. The information contained in thisOffering Circular regarding taxation is for general informationpurposes only and is in conformity with the relevant provisions ofthe Income Tax Act, 1961, Wealth Tax Act, 1957, and Gift Tax Act,1958, respectively and has been included relying upon adviceprovided to the Fund by S.B.Billimoria & Co. Chartered Accountants,auditors of TMF, based on the relevant prevailing provisions. Furtherinvestments by NRI will also be in accordance with the provisionsof Foreign Exchange Management Act, 1999 and RBI directionsand permissions for offer of units to NRIs/ FIIs. All necessary andrequired permissions have been / are being taken and resolutionshave been / are being passed. This Offering Circular is approvedby the Trustee Company on 9th November, 1995.

The contents of the Offering Circular including figures, data, yields,etc. have been checked and are factually correct.

All points mentioned in the SEBI (Mutual Fund) Circular MFD/CIR/06/275/2001 dated July 9, 2001 and revised as on December26, 2003 have been included in this Offering Circular.

Notwithstanding anything contained in the Offering Circular theprovisions of the SEBI (Mutual Funds) Regulations, 1996 and theguidelines thereunder shall be applicable.

By orderBoard of Directors

Tata Asset Management Limited.

Place: Mumbai H. A. BulsaraDate: 4

th July, 2005 Chief Operating Officer


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AMC OFFICES

Call Free : 1–600–22–0101Ahmedabad : 702, “Abhijeet -1”, Mithakhali Circle, Navarangpura, Ahmedabad - 380 009, Tel: (079) 55418989 Mob: 9824284200.Bangalore : 708, Barton Centre, 7th Floor, 84 Mahatma Gandhi Road, Bangalore 560 001, Tel: (080) 25588895 / 96.Bhopal : Swadesh Dubey (Mob): 9826826646.Bhubaneshwar : Narayan Market Complex, 2nd Floor, Janapath, 48 - Ashok Nagar, Bhubaneswar - 751 009, Phone - 0674 – 2533818, Mob - 94370 56196.Chennai : Flat-C, Ist Floor, Ashika Chambers, 22, Chamiers Road, Teynampet, Chennai - 600 018. Tel: (044) 24320032, 24320033.Chandigarh : Cabin No.22, 2nd Floor, Meeting Point.S.C.O.487 - 488,Sector - 35C,Chandigarh – 160022, Tel - (0172)- 5087322 (D),2603771,2604463 extn.231,

Fax - 0172 – 2603770.Cochin : 2nd Floor, Ajay Vihar, Next to Hotel Avenue Regent, Jos Junction, M G Road, Ernakulam, Cochin.

Tel:(0484) 2377580, 2377520, Mobile : 9895033111, Telefax : 0484-2377581.Coimbatore : Gowtham Arcade, 208, T. V. Samy Road (East), R.S. Puram. Coimbatore - 641002, Tel : (0422) 5365635, Mobile: 9843552399.Hyderabad : 6 - 3 - 635/637, B. No. 202, Akaashganga, 2nd Floor, Khairtabad Circle, Hyderabad 500 034,

Tel: (040) 55510215/17/18/19, 55510249, 55548290 Fax: 23395837.Jaipur : M-3(a), Sangam Tower, Church Road, Jaipur-302 001. Tel: - (0141) - 5105177 / 78.Kanpur : Ground Floor, Agarwal Building, Adjoining Oriental Bank of Commerce,Survey No.419/1 Cantts., The Mall, Kanpur - 208 004,

Tel : (0512) 2306066, Fax : 0512) 2306065.Kolkata : Tata Centre,1st Floor, 43, Jawaharlal Nehru Road, Kolkata 700 071,Tel : (033) 2288 1534, 2288 3413, 2288 3415, Fax : (033) 22881535.Ludhiana : Cabin No. 301, Third Floor, SCO 18, Opposite Ludhiana Stock Exchange, Feroze Gandhi Market, Ludhiana - 141001. Mob: - 9815933667.Mumbai : Mulla House, Ground Floor, 51, M.G. Road, Mumbai 400 001, Tel: (022) 56315191/92/93, Fax: 56315194.New Delhi : 710-712, 7th Floor, Prakashdeep Bldg., 7, Tolstoy Marg, New Delhi 110 001, Tel: (011)-55303252/53, Mobile : 9810070252Pune : Office No.14, Karnik Heritage, 2nd Floor, 1225 D Shivaji Nagar, Pune 411 004, Tel - (020) 56052827 / 8 / 9 Telefax: (020) 405 2829.Jamshedpur : C/o Mithila Motors Ltd. 1st Floor, Main Road, Bistupur, Jamshedpur - 831 001, Tel: (0657) 2756021/22/23/30, Fax: (0657) 2756030.Lucknow : Office No. 4, 1st Floor Centre Court Building, 3 C, Park Road, Lucknow 226 001, Tel : 0522- 2235386 Mob: - 94150 93014.Ranchi : Shop No - 15, A. C. Market, ground Floor, G. E. L. Church Complex, Main Road, Ranchi – 834001, Mob: - 98351 90809.Surat : 421, Jolly Plaza, Near Collectors Office Next to G.P College. Athwa Gate, Surat - 395 001, Mob: - 9824020023 Tel: - 0261-5554418 / 19.

COMPUTER AGE MANAGEMENT SERVICES (P) LTD.Agra : Mr. Pankaj Jain, CAMS Transaction Point, F-39/203, Sky Tower, Sanjay Place, Agra - 282002, Tel.: 0562 – 252 1812 Email ID: [email protected] Ahmedabad : Mr. Mukesh Shah / Mr. Bangdiwala, CAMSInvestor Service Center, 402-406, 4th Floor - Devpath Building, Off C G Road, Behind Lal Bungalow, Ellis Bridge, Ahmedabad - 380006 , Phone- (079) 2642 4940, 2646 4929 Fax: 2642 4950, E Mail: [email protected] : Ms. Preeti Agarwal, CAMS Transaction Point, 1st Floor, Chandra Shekhar Azad Complex, (Near Indira Bhawan), 5, S.P. Marg, Civil Lines, Allahabad – 211001 Tel.: 0532 – 260 1602 Email ID: [email protected] : Mr. Rahamathullah, CAMS Transaction Point, 81, Gulsham Tower, Near Panchsheel Amaravati - 444 601, Tel.: 0721 – 3099512, Email ID: [email protected], Amritsar : Mr. Sanjay Kapoor, CAMSTransaction Point, 378-Majithia Complex, 1st Floor, M. M. Malviya Road, Amritsar – 143001 , Tel.: 0183 – 221 1194 Email ID: [email protected] Aurangabad : Mr. Mohd. Rahmatullah, CAMS Transaction Point,Office No. 1, 1st Floor, Amodi Complex, Juna Bazar, Aurangabad - 431 001 Tel.: 0240 – 2363 664 Email ID: [email protected] Bangalore : Mrs. Girija Raman / Mr. Perviz, CAMS Investor Service Center, TradeCentre, 1st Floor, , 45, Dikensen Road ( Next to Manipal Centre ), Bangalore – 560 042, Tel.: 080 – 3094 1357 / 3094 2468, E Mail : [email protected], Bhubaneswar : Mr. Subrat Mishra / Mr. Kailash, CAMS InvestorService Center, 101/ 7, Janpath, Unit – III , Bhubaneswar : 751 001, Tel.:(0674) 253 4909, 253 5395 Fax : 253 4777, E Mail : [email protected] Belgaum : Mr Megharaj Habib, CAMS Transaction Point, No. 21, GroundFloor, Arvind Complex, 1552, Maruti Galli, Belgaum-590 002 Tel.: 0831 – 2425 305 Email ID: [email protected] Bhilai : Mr. Sanjay Kumar, CAMS Transaction Point, 209 , Khichariya Comple, Opp IDBI Bank, NehruNagar Square, Bhilai - 490 020 Tel.: 0788 – 505 0568 Email ID: [email protected] Bhopal : Mr. Ashish Ojha, CAMS Transaction Point, C-12, 1st Floor, Above Life Line Hospital, Zone-I, M.P.Nagar, Bhopal – 462011(M.P.) Tel.: 0755 – 528 5266, Email ID: [email protected] Calicut : Mr Nijas, CAMS Transaction Point, 17/28, H 1st Floor, Manama Towers, Marvoor Road, Calicut – 673 001, Tel.: 0495 – 272 3173, Email ID:[email protected] Chandigarh : Mr. Ramesh Bhatia / Mr. Jagjith Singh , CAMS Investor Service Center, SCO 154-155, 1st Floor, Sector 17-C, , Chandigarh-160017., Phone: (0172) – 2706 651 , 2711 325 Fax : 2705217 , E Mail: [email protected], Chennai : Mr. Somakumar / Venkatesh Pai , Computer Age Management Services Pvt. Ltd., Ground Floor , A & B. Lakshmi Bhawan , 609. Anna Salai , Chennai - 600 006 , Phone:(044) – 2829 5163, 2829 1549 Fax: 2829 5403, E Mail: [email protected],Cochin : Mr.George Varghese / Mr. Datta , CAMS Investor Service Center, 40 / 9633 D, Veekshanam Road,, Near International hotel,Cochin – 682 035, E Mail: [email protected], Coimbatore : Mr.Vetrivel / Ms. Kalpana, CAMS Investor Service Center, 66. Lokamanya Street (West) , Ground Floor, , R.S.Puram, , Coimbatore - 641 002, Phone:(0422) 5369 575, 5369 576 , E Mail: [email protected] Dhanbad : Mr. Gopal Agarwal, CAMS Transaction Point, Urmila Towers, Room No: 111(1st Floor), Bank More, Dhanbad - 826 001 Tel.: 0326 - 230 4675 EmailID: [email protected] Dehradun : Ms. Monika, CAMS Transaction Point, 81, Chakrata Road, Dehradun - 248 001, Tel.: 0135 - 271 3233 Email ID: [email protected] Durgapur : Mr. Falguni Ghosh, CAMSTransaction Point, SN- 10, Ambedkar Sarani, City Centre, Durgapur – 713216 Tel.: 0343 – 254 8190 Email ID: [email protected] Guntur : Mr. A. S.Raju, CAMS Transaction Point, Shyamsunder Golden Towers,Ground Floor 3rd Lane, Brodipet, Adjacent to Over-bridge, Guntur - 522 002 Tel.: 0863 – 5580 838 Email ID: [email protected] Guwahati : Mr. Prodipta Bhattacharjee, CAMS Transaction Point, A.K. Azad Road,Rehabari, Guwahati –781008, Tel.: 0361 – 260 7771, Email ID: [email protected], Hubli : Mr. Veeresh CAMS Transaction Point, No.208, ‘ A ‘ Block,1st Floor, Kundagol Complex, Opp. Court, Club Road, Hubli -580029, Tel.: 0836 – 225 1213, Email ID: [email protected], Indore : Ms. Kavita Dalal / Mr. Manoj, CAMS Investor Service Center, Dalal Chambers, 101.Sagarmatha Apartments, , 1st Floor, 18 / 7 MG Road, , Indore- 452 003, Phone: (0731) 252 8609, 252 9261, E Mail : [email protected], Mr. K.K.Khilnani / Mr. Pintu, CAMS Investor Service Center, G-III, Park Saroj , Behind Ashok Nagar Police Station , R-7, Yudhisthir Marg ,C-Scheme , Jaipur - 302 001, Phone 0141 – 222 0948 / 222 0951, E Mail : [email protected], Jalandhar : Mrs. Monisha Sikka, CAMS Transaction Point, 367/8, Central TownOpp. Gurudwara Diwan Asthan, Jalandhar- 144001, Tel.: 0181 – 2456336 Email ID: [email protected], Jamnagar : Mr. Manish Bhuva, CAMS Transaction Point, 207/209, K.P. Shah House I, K.V. Road, Jamnagar - 361 001, Tel.: 0288 - 255 8467, 0288 –3111909 Email ID: [email protected], Jamshedpur : Mr. Subrat Mishra, CAMS Transaction Point, Panch Bhawan, ‘R’ Road, Bistupur, Gr.Floor, (Near Rajasthan Bhawan), Jamshedpur – 831 001 Tel.: 0657 – 3105930 Email ID: [email protected] Jodhpur : CAMS Transacation Point, 1/5, Nirmal Tower,, Ist Chopasani Road, , Jodhpur – 342 003, Tel.: 0291 – 309 2892 / 262 8039 , Email ID: [email protected], Kanpur: Mr. Rishi Ranjan / Mr. Ashish , CAMS Investor Service Center, G – 27,28 – Ground Floor , City Centre, 63/ 2, The Mall, Kanpur – 208 001, Phone: (0512) 230 6668, 230 6685, E Mail: [email protected], Kolkata :Mr. Sukumar / Ms. Keya Banerjee, Computer Age Management Services Pvt Ltd., “LORDS Building”, 7/1,Lord Sinha Road, Ground Floor, Kolkata – 700 071, Phone: ( 033 ) 3058 2297/3058 2285/3058 2303 Fax : 033 30582288 , E Mail: [email protected], Kota : Mr. Prabhat Gupta, CAMS Transaction Point, B-33 ‘Kalyan Bhawan’, Triangle Part ,Vallabh Nagar, Kota – 324 007 Tel.: 0744 – 2505 452 Email ID: [email protected],Lucknow : Mr. Sandeep Das / Mr. Dinesh, CAMS Investor Service Center, No.3.First Floor , Saran Chambers 1,, 5. Park Road , Lucknow – 226 001 , Phone: ( 0522 ) – 2237309 Fax : 2237310 , E Mail: [email protected],Ludhiana : Mr.Rajesh Dewan / Mr. Ajay, CAMS Investor Service Center, Shop no. 20-21 ( Ground Floor ), Prince Market, near Traffic Lights, Sarabha Nagar Pulli, Pakhowal Road, P.O: Model Town, Ludhiana - 141 002,Tel.:(0161) 501 7502 , 241 0279 Fax : 245 8840, E Mail : [email protected], Madurai : Mr. S Duramimurthy, CAMS Transaction Point 86/71A, Tamilsangam Road, , Madurai - 625 001 , Tel.: 0452 - 2622 682 , EmailID: [email protected], Manipal : Mr. Ravi, CAMS Transaction Point, Academy Annex, First Floor , Opposite Corporation Bank, , Upendra Nagar, , Manipal – 576104, Tel.: 0820 – 257 3333, 529 2033, Email ID:[email protected], Merrut : Mr. Pankaj Jain, CAMS Transaction Point, 108 Ist Floor Shivam Plaza, Opposite Eves Cinema, Hapur Road, Merrut – 250 002, Tel.: 0121 – 2400 700 Email ID: [email protected],Mangalore : Mr. Veeresh Inchalmath / Mr. Raghavendra, CAMS Investor Service Center, 6. First Floor, West Gate Terminus, Falnir Road, Opp. Unity Health Complex, Highlands , Mangalore – 575 002, Phone: (0824) 2436567, 525 2525, E Mail : [email protected], Moradabad : Mr. Manoj Jain, CAMS Transaction Point, B-612 ‘Sudhakar’, Lajpat Nagar, Moradabad – 244 001, Tel.: 0591 - 3092844, Email ID: [email protected], Mysore : Mr. ST Patil, CAMS Transaction Point, No.3, 1st Floor, , CH.26 7th Main , 5th Cross , (Above Trishakthi Medicals) , Saraswati Puram, Mysore – 570 009, Tel.: 0821 – 309 1244 / 234 2182, Email ID:[email protected], Mumbai : Mr. R.Vaidyanathan / Mr. Jalson , Computer Age Management Services Pvt. Ltd., Rajabahdur Compound, Ground Floor, Opp Allahabad Bank, Behind ICICI Bank, 30, MumbaiSamachar Marg, Fort,, Mumbai – 400 023, Phone: 22702414, 22702415, 22702416, 22622903,22622904 , Fax: 22622561, E Mail: [email protected], Nagpur : Ms. Anitha Mokha / Ms. Geetha, CAMS InvestorService Center, 145 Lendra Park,Behind Shabari,, New Ramdaspeth, , Nagpur – 440 010., Phone: (0712) 253 2447, 253 7321 Fax: 254 1449, E Mail: [email protected], Nasik : MR Raman Balkisan Dhoot, CAMSTransaction Point, “Varsha Bungalow”, , 1st Floor, Near Rungtha High School, 493, Ashok Stambh, Nasik - 422001, Tel.: 0253 - 257 7449 Email ID: [email protected], New Delhi : Mr. Suresh Kalra / Mr. Felix,Computer Age Management Services Pvt. Ltd., 304-305 III Floor, Kanchenjunga Building, 18, Barakhamba Road, New Delhi - 110 001., Phone: ( 011 ) 2335 3831, 2335 3832 , 2335 3833 Fax: 2335 3834, E Mail:[email protected], Nellore : Mr. Srinivas, CAMS Transaction Point, Shop No.13, First Floor, KAC Plaza, R R Street, Nellore – 524 001 Tel.: 0861 – 5512 582, Email ID: [email protected] ,Panaji Goa : Mr.Vivekanand / Mr. Sudhil , CAMS Investor Service Center, No.108, 1st Floor, Gurudutta Bldg,, Above Weekender, M G Road, , Panaji Goa-403 001, Phone (0832) - 5645787, 2424527 , Fax: 242 4529 , E Mail:[email protected], Patiala : Mr. Vikas Gupta, CAMS Transaction Point, 35, New lal Bagh Colony, Patiala – 147001 Tel.: 0175 – 222 9633, 309 3724 Email ID: [email protected], Patna : Mr. Sunil Kumar/ Mr. Anand Kumar, CAMS Investor Service Center, Kamlalaye Shobha Plaza (1st Floor) , Behind RBI Near Ashiana Tower, Exhibition Road, Patna – 800 001 , Tel.: ( 0612 ) 2322 206, Email : [email protected],Pondicherry : Mr. Hashim, CAMS Transaction Point, 25, First Floor, Jawaharlal Nehru Street, Pondicherry – 605 001 Tel.: 0413 – 222 0575 / 233 5722 Email ID: [email protected], Pune : Mr. Yatin Desai / Mr. Kamaal,CAMS Investor Service Center, Nirmiti Eminence, Off No. 6, I Floor, Opp Abhishek Hotel Mehandale Garage Road, , Erandawane , Pune – 411 004, Tel.: 020 – 3028 3003, 3028 3004. , Fax: 020 – 2541 2294, E Mail:[email protected], Raipur : Mr. Ajay Maloo, CAMS TRANSACTION POINT, C-23, Sector 1 , Devendra Nagar , Raipur – 492004 Tel.: 0771 – 309 0830 Email ID: [email protected], Rajahmundry : Mr.Pavan Kumar, CAMS Transaction Point, D.no 7-27-4, Krishna Complex, Baruvari Street, T Nagar, Rajahmundry – 533101, Tel.: 0883 – 5565531, Email ID: [email protected], Rajkot : Mr. Kalpesh Mehta, CAMSTransaction Point 111, Pooja Complex , Harihar Chowk , Near GPO , Rajkot - 360001 , Tel.: 0281 - 2241 399 , Email ID: [email protected], Ranchi : Mr. Praveen Sharma, CAMS Transaction Point, 223,Tirath Mansion(Near Over Bridge),1st Floor, Main Road, Ranchi – 834 001, Tel.: 0651 – 309 5122, Email ID: [email protected], Rourkela : Mr Amit, CAMS Transaction Point, 1st Floor , Mangal Bhawan , Phase II , Power HouseRoad , Rourkela – 769001, Ph: Ph : 0661 2513098, Email : [email protected], Salem : Mr. AR Palaniappan, CAMS Transaction Point 28, I Floor , Advytha Ashram Road , Salem - 636 004 , Tel.: 0427 - 244 6338 ,Email ID: [email protected], Secunderabad : Mr.Bhavanarayanan / Mr. Ramakrishna, CAMS Investor Service Center, 102, First Floor , Jade Arcade, Paradise Circle, Secunderabad - 500 003, Phone- 040 - 55321531 , 5532 1532 Fax : 5532 1531, E Mail: [email protected], Siliguri : Mr. Sunando Sarkar, CAMS Transaction Point, No 8, Swamiji Sarani, Ground Floor,, Hakimpara, Siliguri – 734401, Tel.: 0353 - 221 6065, EmailID: [email protected], Surat : Mr. Ashish Engineer / Pragna Engineer, CAMS Investor Service Center, Niva Apartments,, Above Sagrampura-Rudarpura Co-op Bank, , Bhatia Street, Nanpura, Surat – 395001, Phone:(0261) – 246 4887 / 246 4679 / 246 2531, E Mail : [email protected], Trichur : Mr. Sibu K A, CAMS TRANSACTION POINT, VIII/350/15, O K John Memorial Building , Ekkanda Warrier Road , Trichur – 686 001 Tel.:0487 – 2420646, Email ID: [email protected], Trichy : Mrs V Jothi, CAMS Transaction Point, No 8, I Floor, 8th Cross West Extn., Thillainagar, , Trichy - 620 018 , Tel.: 0431 - 274 1717 , Email ID: [email protected],Trivandrum : Mr. Viji Thomas, CAMS Transaction Point, Tc 15 / 2012,, Sheelatha Building,, Womens’ College Lane,, Vazuthacadu,, Trivandrum – 695 014, Tel.: 0471 – 3950 414, Email ID: [email protected], ,Udaipur : Mr. Rajesh Surana, CAMS Transaction Point, 32, Ahinsapuri, Fatehpura Circle, Udaipur – 313004, Tel.: 0294 - 3091722, Email ID: [email protected], Vadodara : Mr. Satish Shah / Mr. Dilip Shah , CAMSInvestor Service Center, 109 - Silver Line, Besides world Trade Centre, Sayajigunj, Vadodara – 390 005., Phone: (0265) – 222 5146, 236 2412, E Mail: [email protected], Varanasi : Mr Deepak Kumar Gujrati, CAMSTransacation Point, C 27/249 - 22A, Vivekanand Nagar Colony, , Maldhaiya, , Varanasi – 221002 , Tel.: 0542 – 220 8546 / 311 3810, Email ID: [email protected], Vijayawada : Mr. BVD Prasad, CAMS TransactionPoint 40-1-48/2, Bandar Road, Adj. To HDFC Bank, Vijayawada – 520010, Tel.: 0866 – 559 5657, Email ID: [email protected], Valsad : Mr. Kausik Mistry, CAMS Transaction Point, C/o. CAD House, SiddhivinayakComplex,, F-1, First Floor, Avenue Building,, Near R.J.J. School,, Tithal Road, , Valsad – 396001, Tel.: 02632 – 249 957, Email ID: [email protected], Visakhapatnam : Mr. Sastry / Mr. Murthy , CAMS Investor ServiceCenter, 47/ 9 / 17, 1st Floor,, 3rd Lane , Dwaraka Nagar , Visakhapatnam - 530 016. , Phone: (0891) – 2598 875, 2540 175, E Mail: [email protected].

Contact : 1-600-33-4449WESTERN PRESS Pvt. Ltd.MUMBAI 400 013. 2493 9382

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