saharamutual.comsaharamutual.com/.../annualreportsmf200809.pdf · ANNUAL REPORT 2008-09 BOARD OF...

ANNUAL REPORT 2008-09

BOARD OF TRUSTEES Justice S Mohan, Independent Trustee Amitabha Ghosh Associate Trustee S R Hegde ,Independent Trustee P V Rao ,Independent Trustee SAHARA MUTUAL FUND

97-98, ATLANTA Nariman Point Mumbai-400 021. SPONSOR Sahara India Financial Corporation Limited Sahara India Bhavan

Kapoorthala Complex Lucknow-226024 INVESTMENT MANAGER Sahara Asset Management Company Private Limited

97-98, ATLANTA Nariman Point Mumbai-400 021. REGISTRAR AND TRANSFER AGENT Karvy Computer Share Private Limited 21, Avenue 4, Street No 1 Banjara Hills, Hyderabad -500034. CUSTODIAN HDFC BANK LTD Kamala Mills Compound Senapati Bapat Marg Lower Parel Mumbai-400013 STATUTORY AUDITORS

Chaturvedi & Co Chartered Accountants 81, Mittal Chambers Nariman Point Mumbai- 400.21

REPORT OF THE TRUSTEES We are pleased to present before you the ANNUAL REPORT of SAHARA MUTUAL FUND for the year ended March 31, 2009. Sahara Mutual Fund (formerly known us First India Mutual Fund) has been constituted as a Trust on 18th July, 1996 in accordance with the provisions of the Indian Trust Act, 1882 and is duly registered under the Indian Registration Act, 1908. The Fund is registered with SEBI under Registration No.:MF/030/96/0. The Trustees have entered into an Investment Management Agreement dated 18th July 1996 with Sahara Asset Management Company Private Limited Ltd (formerly First India Asset Management (P) Ltd to function as the Investment Manager for all the Schemes of Sahara Mutual Fund. The Sponsor to the Mutual Fund is Sahara India Financial Corporation Limited and has contributed an initial amount of Rs.1 lakh as the Trust Corpus. The Board of Trustees is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unit holders. The Board of Trustees has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Board of Trustees seeks to ensure that the Fund and the Schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. OVERVIEW OF DEBT MARKETS IN 2008-09 The year was one of the toughest for the world economies since World War II. We saw centuries old institutions failing, one of the biggest corporations going bankrupt, millions losing their job worldwide. It began with valuing the sub-prime mortgage derivatives and home foreclosure causing problem to financial institutions. The RBI began the year with policy rate tightening and CRR and Repo rate both touched a high of 9%. The central banks across the world cut policy rates which apart from bring some relief to the financial system, fuelled commodity prices of crude, steel, gold and food prices. Inflation started sky rocketing starting the year with 7% and touched a thirteen year high of 12.63%. Banks suffered losses on account of mark-to-market their investment portfolios which called for fresh capitalization of various banks. Failure of Lehman Brothers resulted in interbank credit almost drying up. The economic activity came to literal stand still. The only activity could be seen was in sovereign bonds. In India, corporate started to feel the heat with their drawing limits either curtailed or not renewed. The demand for credit from corporate could not be met due to the fear of NPAs and future prospects. To counter this situation RBI kept on easing policy rates like CRR and Repo in an attempt to make the credit availability on easy terms. The Reserve bank of India in its July review had forecasted the GDP growth at 7.7% got revised to 7.1% in January’09 got again revised to 6.5 – 7%. With the fall in consumption in developed economies, exports of developing nations took a hit. The Rupee which began the year at Rs.39.88 / USD depreciated around 27% closing at Rs.50.64 / USD on 31st March’09. The gilt prices also witnessed volatile trend during the year mirroring the liquidity conditions.

OVERVIEW OF EQUITY MARKETS IN 2008-09 The equity markets in India and across the world went through a phase of turbulence in 2008-09. Indian equity markets, which were increasingly getting integrated with the world financial system, could not escape the growing uncertainty in the world financial markets and thus reacted with volatility wiping out most of the gains of the last three years and closing 2008-09 with a loss of 36%. Globally, growth seems to have slowed down considerably as fundamentally economies have been weakening on the back of the global turmoil. Even India and China have not been able to escape the bearish trend on the back of manufacturing slump, exports plunge, job losses and weak consumer confidence. Though the investors across the world still believe in long term growth story of India, the liquidity problems in their home countries and growing risk averseness led them to withdraw money from India thus resulting in a prolonged correction in the equity markets. The major concern at the beginning of the financial year were the high commodity and oil prices which rendered the inflation in the Indian economy run into double digit figures which in turn prompted the RBI to respond with increasing its benchmark rates repo & reverse repo to as high as 9.00%. High commodity prices coupled with high interest rates began to eat into the profitability of the corporates especially those belonging to the SME segment. The oil price correction led to the conclusion that the world financial crises that originated in the US and some European Banks has now come to the fore and thus have caused demand destruction globally as the sources of money dried up and there was no credit flowing in the system. The subsequent failure of Lehman Brothers, due to fall in asset prices and credit crunch, further exacerbated the credit crisis which catapulted the world economy into the throes of recession. The US economy contracted by over 6.00% (annualized) in the last two quarters and the other developed economies are also now in the recessionary trend - all this despite the massive bailout packages into trillions of dollars date with more to come. The focus of these bailout packages has been to stimulated the demand for early economic recoveries. India too has been impacted by the global economic crisis. After clocking annual growth of 8.9% on an average over the last five years (2003-08), India was headed for a cyclical downturn in 2008-09. But the growth moderation has been much sharper because of the negative impact of the world financial crisis. In fact, in the first two quarters of 2008-09, the growth slowdown was quite modest; the full impact of the crisis began to be felt in the third quarter, which recorded a sharp downturn and registered a low 5.5% GDP growth. For the first time in seven years, exports declined in the second half of the financial year. Recent data indicate that the demand for bank credit has slackened despite comfortable liquidity in the system.

Amidst all the gloomy news surrounding us, in both the Indian as well as global context it is heartening that the regulators as well as governments have responded with measures from time to time to stimulate demand. The Government of India announced three fiscal stimulus packages during December 2008-February 2009 along with RBI easing the monetary policy by reducing its benchmark rates to 4.75% & 3.25% (repo and reverse repo respectively). These stimulus packages came on top of an already announced expanded safety-net program for the rural poor, the farm loan waiver package and payout following the Sixth Pay Commission report, all of which too added to stimulating demand. The inflation levels in the economy declined to 0.26% by March 28,2009 as compared to intra-year high of 12.91% recorded on August 2, 2008. As the economic indicators begin to point towards a recovery, we witnessed equity markets gaining some of the last ground towards the end of the financial year. It seems that markets priced in the worst and are now aligned to consider the underlying growth potential in the Indian economy. It is now increasingly expected that domestic demand clubbed with high rate of savings in the Indian economy, along with highly robust, well regulated banking and financial system would soon propel India back onto the path of growth. TRUSTEES: The Board of Trustees as on date comprise Justice S Mohan, Independent Trustee, Mr. Amitabha Ghosh, Nominee of the Sponsor, Mr. S. R. Hegde, Independent Trustee and Mr. P.V. Rao, Independent Trustee. PERFORMANCE. (a) EQUITY SCHEMES:

1. Sahara Tax Gain Fund Investment Objective: The scheme objective is to provide immediate tax relief and long term growth of capital to investors by investing upto 85 % in equity and equity related instruments.

Returns:

Performance as of March 31, 2009

1 year 3 years 5 years Since inception

Inception date

NAV (%) (32.47) (5.78) 14.84 24.13 BSE 200 (%) (40.98) (6.89) 9.23 10.80

April 1, 1997

• Converted into an open ended fund from November 7, 2002. “The price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments;”

2. Sahara Growth Fund. Investment Objective: The basic objective of Sahara Growth Fund is to achieve capital appreciation by investing in equity and equity related instruments

Returns:



Inception date

NAV (%) (25.67) 2.75 18.90 26.33 CNX Nifty (%) (36.19) (3.89) (11.26) 18.05

July 22, 2002

“The price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments;”

3. Sahara Mid Cap Fund. Investment Objective: The basic objective is to achieve long term capital growth at medium level of risks by investing primarily in Midcap stocks.

Returns:


1 year 3 years Since inception Inception date

NAV (%) (45.41) (12.92) 3.60 CNX 500 (%) (45.40) (10.71) 5.36

December 31, 2004

“The price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments;”

4. Sahara Wealth plus Fund. Investment Objective: The primary objective of the scheme would be to invest equity and equity related instruments of companies that would be wealth builders in the long term.

Returns:

Performance as of 1 year 3 years Since Inception date

March 31, 2009 inception NAV (%) VPO (34.87) (7.55) 2.50 FPO (35.32) (8.18) 1.81 CNX 500 (%) (40.02) (7.61) 6.47

September 1, 2005

VPO – Variable Pricing Option FPO – Fixed Pricing Option “The price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments;”

5. Sahara Infrastructure Fund.

Investment Objective: The primary objective of the scheme is to provide income distribution and/or medium to long term capital gains by investing predominantly in equity / equity related instruments of companies in the infrastructure sector.

Returns:


1 year 3 years Since inception Inception date

NAV (%) VPO (37.57) NA (3.12) FPO (38.05) NA (3.80) Nifty (%) (36.19) NA (4.90)

April 3,2006


6. Sahara R.E.A.L Fund: (Retailing, Entertainment & Media, Auto & Auto Ancillaries and Logistics Fund).

Investment Objective: The primary objective of the scheme is to provide long term capital gains by investing predominately in equity/equity related instruments of companies in the Retailing, Entertainment & Media, Auto and Auto Ancillaries and Logistics sector. Returns:


1 year 3 years Since inception

Inception date

NAV (%) (41.00) NA

(43.99))

CNX Nifty (%) (36.19) NA (37.06)

November 27, 2007


(b) DEBT SCHEMES

7. Sahara Income Fund.

Investment Objective: The primary objective of the scheme is to generate regular income and growth of capital through investment in debt instruments, money market and related securities while at all times emphasizing the importance of capital preservation. Returns:



Inception date

NAV (%) 16.046 10.561 7.117 7.325 CRISIL Composite Bond Fund Index (%)

7.354 6.418 4.518 NA* February 22,

2002

*as Index launched on March 31, 2002 “The price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments;”

8. Sahara Liquid Fund.

Investment Objective: The investment objective is to create a highly liquid portfolio of good quality debt as well as money market instruments with a view to provide high liquidity and reasonable returns to the unit holders, while at all times emphasizing the importance of capital preservation.

Returns:


1 year 3 years Since inception

Inception date

NAV (%) VPO 9.260 8.125 7.852 FPO 9.029 7.902 6.640 CRISIL Liquid Fund Index (%) 8.806 7.562 NA*

February 22, 2002

• * As Index launched on March 31,st, 2002. Face Value of Units – Rs.1000/- • FPO- Fixed Pricing Option VPO – Variable Pricing Option “The price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments;”

9. Sahara Gilt Fund.

Investment Objective: The investment objective is to generate reasonable returns by investing in sovereign instruments issued by Central / State governments.

Returns:



Inception date

NAV (%) 19.481 11.041 6.490 6.803 I Sec Composite Index (%) 12.833 9.161 6.261 NA*

February 22, 2002

• * As Index launched on March 31,st, 2002. “The price and redemption value of the units, and income from them, can go up as well as down with the fluctuations in the market value of its underlying investments;”

10. Sahara Fixed Maturity Plan 395 Days Series 2 and 3

Investors under Sahara Fixed Maturity Plan 395 Days Series 2 and Series 3 were allotted units on March 10, 2008 and March 17, 2008 respectively. The NAV of Sahara FMP 395 Days Series 2 as on 31st March, 2009 under the growth option stood at Rs.10.9790 and under the dividend option stood at Rs.10.9791. The NAV of Sahara FMP 395 Days Series 3 as on 31st March, 2009 under the growth option stood at Rs.11.0081 and under the dividend option stood at Rs.11.0069.

11. Sahara Classic Fund:

Investment Objective: The objective is to generate returns by investing in debt instruments including money market instruments and also to invest in equity and equity related instruments to seek capital appreciation. The one year return as on 31st March 2009 is 17.25 % as against the benchmark return is 7.869 %. In addition two-equity oriented schemes, Sahara Power and Natural Resources Fund, Sahara Banking & Financial Services Fund and Sahara Interval Fund were launched during the year. The Balance Sheet and the Revenue Account together with the notes thereon have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable.

MARKET OUTLOOK FOR 2009-10

DEBT MARKETS

The GDP growth rate is projected at 7.0 – 7.5% for the year 2009-2010. With congress Government getting clear mandate, we may expect the reforms to take priority. This growth can be achieved by fiscal stimulus, innovative public spending, comfortable external payments and prudent measures could stimulate demand. The banks may start lending rather than investing in sovereign debt. Considering the widening fiscal deficit situation, we may expect an upward revision in the borrowing programme. We expect the Ten year benchmark yields to harden further in the second half of the fiscal year. On the back of weakening fiscal situation, we expect the yield curve to move up in the year ahead.

EQUITY MARKETS

In the last year we weathered an unprecedented global liquidity crisis that led to a sharp slowdown in growth. While India was on a better wicket, we could not remain entirely immune to such a severe global contagion. Fortunately, governments internationally were very proactive and large doses of stimulatory medicine have been delivered. India’s growth is amongst the fastest in the world and with a locally driven economy - consensus estimates for India’s GDP growth range from 5- 6% vs. projected contraction in the world GDP by 1-1.5%. The fiscal year 2009-10 is likely to be one where specific sectors and company performances could be much better than broader market indices. The challenge will be to pick these stocks and sectors ahead of the market. The policy initiatives by the new government would be critical for a pick-up in investments in the short-term as well as for overall growth in the economy. The key would be to remain disciplined and focused on quality and well researched investments to deliver healthy results over a long term.

Unclaimed Dividends & Redemptions

Scheme Name

No of Investors

Unclaimed Dividend (Rs)

No. of Investors

Unclaimed Redemption (Rs)

Sahara Infrastructure Fund 35 239,530.67 25 124,475.22

Sahara Midcap Fund 84 141,400.01 51 267,352.14

Sahara Gilt Fund 2 1289.55 - -

Sahara Growth Fund 7 22,336.71 2 19,528.70

Sahara Income Fund 17 11,286.22 8 36,862.60

Sahara R. E. A. L Fund. - - 1 10,378.70

Sahara Tax Gain Fund 213 281,104.71 7 20,363.42

Sahara Wealth Plus Fund - - 58 447,543.01

STATUTORY INFORMATION a. The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution of Rs.1 lakh for setting up the Fund. b. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments. c. Full Annual Report is disclosed on the website (www.saharamutual.com) and shall be available for inspection at the Head Office of the Mutual Fund. Present and prospective unit holders can obtain copy of the trust deed, the full Annual Report of the Fund / AMC. ACKNOWLEDGEMENTS The Trustees would like to thank all the investors for reposing their faith and trust in Sahara Mutual Fund. The Trustees thank the Securities and Exchange Board of India, the Reserve Bank of India, the Sponsors, the Board of the Sahara Asset Management Company Private Limited, and Association of Mutual Funds in India for their support, co-operation and guidance during the period. We are also thankful to the Auditors, Registrar and Transfer Agents, Custodian, Banks, AMFI Certified distributors and other service providers for their continuous support. The Trustees also appreciate the efforts made by the employees of Sahara Asset Management Company Private Limited and place on record their contribution in good performance of the schemes. We look forward for your continued support and assure you of our commitment at all times in managing the schemes of Sahara Mutual Fund.

On behalf of the Board of Trustees For SAHARA MUTUAL FUND Justice S Mohan Trustee Place: Mumbai Date: June 22, 2009

_________________________________________________________________________________________________

AUDITORS’ REPORT TO THE TRUSTEES OF SAHARA MUTUAL FUND

1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Tax Gain Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary

for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme.

4. According to the explanations given to us and read with point no. 7.3A of Schedule 8 to the Financial Statements,

appropriate amounts have been transferred by the scheme to Unit Premium Reserve Account and Income Equalization Account the basis for which has been changed in the current year from Management estimates to the best practice followed by the Industry.

5. In our opinion and to the best of our information and according to the explanations given to us:

5.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and give a true and fair view in conformity with the Accounting principles generally accepted in India

i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the deficit for the year ended on that date.

6. The Balance Sheet and the Revenue Account together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable.

For CHATURVEDI & COMPANY Chartered Accountants (SN Chaturvedi)

Place: Mumbai Partner Date :22/06/2009 M No.040479

SAHARA TAX GAIN FUND BALANCE SHEET AS AT MARCH 31, 2009

Schedule As at As at March 31, 2009 March 31, 2008 ASSETS (Rs) (Rs) Investments 1 41,310,116 50,109,410 Deposits 2 - - Other Current Assets 3 8,892,943 35,971,232 Total Assets 50,203,059 86,080,642 LIABILITIES Unit Capital 4 44,376,083 38,527,325 Reserves & Surplus 5 3,143,876 22,148,065 Current Liabilities & Provisions 6 2,683,100 25,405,252 Total Liabilities 50,203,059 86,080,642 NET ASSET VALUE Net Asset Value per unit (Rs.) i) Growth Option 16.7512 24.8062 ii) Dividend Option 9.5393 14.1363 Significant Accounting Policies and Notes to the accounts 8 Schedules 1 to 6 and 8 form an integral part of the Balance Sheet As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place :Mumbai Date: 22/06/2009

SAHARA TAX GAIN FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule For the year

ended For the year ended March 31, 2009 March 31, 2008 (Rs) (Rs) INCOME

Dividend Income

708,308 404,908

Interest Income

666,358 185,086

Profit on Sale / Redemption of Investments(Net)

(22,850,762) 22,135,468 (Other than Inter Scheme Transfer / Sale)

Total Income

(21,476,096) 22,725,463 EXPENSES & LOSSES

Management Fees

669,871 804,063

Trusteeship Fees & Expenses

60,231 33,204

Audit Fees

48,216 36,498

Brokerage on Derivatives

- -

Custodian Fees

89,754 35,096

Registrar & Transfer Agent Charges

223,820 240,044

Insurance

28,399 27,340

Marketing & Distribution Expenses

131,198 366,897

Legal & Professional Fees

88,811 62,353

Total Expenses

1,340,299 1,605,495

Net Surplus for the Year (excluding unrealised appreciation)

(22,816,395) 21,119,969

Provision for diminution in value of Investments 7

1,209,751 (6,949,651)


(21,606,644) 14,170,318

Transfer from Income Equalisation Reserve

6,920,817 20,918,431

Dividend paid, including dividend tax (reversed)

35,399 (24,531,438)

Net Surplus Transferred to Revenue Reserve

(14,650,428) 10,557,310 Significant Accounting Policies and Notes to the accounts 8 Schedules 7 to 8 form an integral part of the Revenue Account As per our attached report of even date


SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at

March 31, 2009 March 31,

2008 (Rs) (Rs) SCHEDULE 1 Investments (Refer Note 7.14 of Schedule 8 for detailed Portfolio Statement)

Equity Shares

41,310,116

50,109,410

41,310,116

50,109,410 SCHEDULE 2 Deposits

With Scheduled Bank

-

-

-

- SCHEDULE 3 Other Current Assets

Balances with Banks in Current accounts

3,540,687

11,741,374 Contracts for sale of Investments

1,623,162 1,954,906

Outstanding and Accrued Income

422

-

Reverse Repo arrangements

3,626,590

21,461,846

Receivable on Issue of Units

84,582

780,857

Dividend Receivable

17,500

32,250

8,892,943

35,971,232 SCHEDULE 4 Unit Capital

Growth Option 713959.8200 units of Rs.10 each

7,139,598

5,818,741 (For 2007-08 581874.0580 units of Rs.10 each

Dividend Option 3723648.5150 units of Rs.10 each

37,236,485

32,708,585 (For 2007-08 3270858.4620 units of Rs.10 each)

Total

44,376,083

38,527,325 (Refer Note 7.10 of Schedule 8) SCHEDULES FORMING PART OF THE BALANCE SHEET SCHEDULE 5 As at As at


2008 Reserves and Surplus (Rs) (Rs) Revenue Reserve

Balance as at beginning of the year

47,573,138

37,015,829

Transferred from Revenue Account

(14,650,428)

10,557,310

Balance as at end of the year

32,922,711

47,573,138 Income Equalisation Reserve Balance as at beginning of the year

Additions during the year

6,920,817

20,918,431

Transferred to Revenue Account

(6,920,817)

(20,918,431)


-

- Unrealised Appreciation Reserve


1,049,534

3,202,478

Additions/(Deletions) during the year

449,556

(2,152,943)


1,499,090

1,049,534 Unit Premium Reserve Balance as at beginning of the year

(26,474,607) (19,937,999)

(Deletions)/Additions during the year

(4,803,318)

(6,536,608)


(31,277,925)

(26,474,607)

Balance carried to the Balance Sheet

3,143,876

22,148,065 SCHEDULE 6 Current Liabilities and Provisions

Sundry Creditors

-

288,571

Management Fees Payable

7,645

73,769

TDS on management fees payable

-

-

Contract for Purchase of Investments

2,513,450 -

Unclaimed Distributed Income

281,105

9,722

Dividend Payable to Unitholder -

24,531,439

Payable on Redemption of Units

8,960

8,881

Load Charges Payable to AMC

12,142

489,569 (Refer note 7.7 of Schedule 8)

Other Payables

(140,202)

3,301

2,683,100

25,405,252 SCHEDULES FORMING PART OF REVENUE ACCOUNT

For the year ended For the

year ended


2008 (Rs) (Rs) SCHEDULE 7 Provision / Write back for dimunition in value of Investments

At the beginning of the year

(8,189,391)

(1,239,740)

At the end of the year

(6,979,640)

(8,189,391)

1,209,751

(6,949,651)

SAHARA TAX GAIN FUND

Perspective Historical Per unit statistics

Particulars As at As at As at 31-Mar-09 31-Mar-08 31-Mar-07

(A) Gross Income (I) Income other than Profit on sale of Investments 0.31 0.15 0.36 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments 0.00 0.00 0.00

(iii) Income from Profit (net of Loss) on sale other than Inter scheme -5.15 5.75 1.32 (iv) Transfer to revenue account from past year's reserve NA NA NA (B) Aggregate of expenses, write off, amortisation 0.30 0.42 0.41 and charges (c) Net Income -5.14 5.48 1.27 (d) Net unrealised appreciation/(dimunition) in value of Investments -1.24 2.40 1.59 (e) Net Asset Value Growth Plan 16.7512 24.8062 19.2531 Dividend Plan 9.5393 14.1363 16.7975 (f) Repurchase Price during the year** (I) Highest Growth Plan 27.1294 34.85 21.8581 Dividend Plan 15.448 31.3306 19.1227 (ii) Lowest Growth Plan 14.642 18.8272 16.4341 Dividend Plan 8.3382 14.1363 14.1386 (g) Resale Price during the year** (I) Highest Growth Plan 28.0200 36.8676 22.3499 Dividend Plan 15.9551 32.1486 19.55 (ii) Lowest Growth Plan 15.1227 18.9575 15.114 Dividend Plan 8.6119 14.1363 12.7491 (h) Ratio of expenses to average daily net assets by Percentage 2.50% 2.50% 2.50% (i) Ratio of income to average daily net assets by Percentage (excluding transfer to revenue -50.25% 24.27% 14.43% account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the year

SCHEDULE - 8 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2009. 1. INTRODUCTION

1.1 About the Scheme

Sahara Tax Gain Fund (the “Scheme”) was launched as a close ended scheme on April 1, 1997 of Sahara Mutual Fund (the “Fund”) and the units allotted under the scheme were subject to a mandatory three-year lock-in-period till March 31, 2000. The basic objective of the scheme is to provide immediate tax relief and long term growth of capital to investors. The Scheme opened for redemptions at Net Asset Value with effect from April 1, 2000. The Scheme has subsequently become open ended from November 7, 2002 and opened for continuous purchase and redemptions at prevailing NAV from November 11, 2002. The Scheme has two plans – Dividend and Growth. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value.

1.2 Asset Management Company

Sahara Mutual Fund (SMF) has been established as a Trust in accordance with the Indian Trusts Act, 1882, and is sponsored by Sahara India Financial Corporation Limited (“SIFCL”). Sahara Asset Management Company Private Limited (“SAMCPL”), a company incorporated under the Companies Act, 1956, has been appointed as the Asset Management Company (“Investment Manager”) to Sahara Mutual Fund.

The shareholding of Sahara Asset Management Company Private Limited as on March 31, 2009 is as follows:

Name of the Shareholder Type of Holdings Holding Sahara India Financial Corporation Limited Equity 48.64 % Sahara India Corp Investment Limited Equity 17.53 % Sahara Prime City Limited (formerly Sahara India Investment Corporation Limited )

Equity 17.53 %

Sahara Care Limited Equity 16.30 %

Name of the Shareholder Type of Holdings Holding Sahara India Commercial Corporation Ltd Preference 90.32 % Sahara Care Ltd Preference 9.68 %

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis of Accounting

The Scheme maintains its books of account on an accrual basis. These financial statements have been prepared in accordance with the Accounting Policies and Standards specified in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, (the “Regulation”), and amendments thereto, as applicable.

2.2. Accounting for Investments

2.2.1 Investments are accounted on trade dates at cost including brokerage, stamp duty and other charges which are included in the acquisition of investments.

2.2.2 Profit or loss on sale of investments is determined on the respective trade date by adopting the “Weighted Average Cost” method.

2.2.3 Bonus/Rights entitlements on equity holdings are recognized only when the original shares on which the entitlement accrues are traded on the Principal stock exchange on ex-bonus/ex-rights basis respectively.

2.2.4 Primary Market Investments are recognized on the basis of allotment advice.

2.3. Valuation of Investments

2.3.1 Traded Investments

1. Traded equity securities and warrants are valued at the last quoted price on the National Stock Exchange of India Limited (NSE). However, if the securities and warrants are not listed on NSE, the securities are valued at the price quoted at the exchange where it is principally traded. When on a particular valuation day, a security has not been traded on NSE but has been traded on another stock exchange; the value at which it is traded on that stock exchange is used provided it is not more than thirty days prior to the valuation date.

2. The Valuation of Right Shares until they are traded, is done as per the method given below:

Vr = n x (Pex – Pof) m

Where Vr = Value of rights n = no. of rights offered m = no. of original shares held Pex = Ex-rights price Pof = Rights Offer Price

Where the rights are not treated pari-passu with the existing shares, suitable adjustment should be made to the value of rights. Where it is decided not to subscribe for the rights but to renounce them and renunciations are being traded, the rights can be valued at the renunciation value.

2.3.2 Unlisted/Non traded / Thinly Traded Investments

Non-traded / thinly traded / privately placed equity securities including those not traded within thirty days are valued at fair value as per procedures determined by SAMCPL and approved by the Trustees in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India (SEBI) from time to time.

2.3.3 Other Investments

a. Money Market Instruments are valued at cost plus accrued interest.

b. Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.

c. Traded treasury bills, certificate of deposits and commercial paper are valued at the yield at which they are currently traded. Non-traded treasury bills, certificate of deposits and commercial paper including those not traded for a period of seven days are valued at cost plus accrued interest.

d. Investments in mutual fund schemes are valued based on the net asset value of the respective schemes as on the valuation date.

2.3.4 Unrealised Appreciation/Depreciation.

In accordance with the Guidance Note on Accounting for Investments in the Financial Statements of Mutual Funds issued by the Institute of Chartered Accountants of India, the unrealized appreciation determined separately for each individual investment is directly transferred to the “Unrealised Appreciation Reserve Account” i.e. without routing it through the revenue account.

The provision for depreciation in value of investments determined separately for each individual investment is recognized in the revenue account. The loss on investments sold / transferred during the year is charged to revenue account, instead of being first adjusted against the provision for depreciation, if already created in the prior year, as recommended by the said Guidance Note. However, this departure from the Guidance Note does not have any impact on the Scheme’s net assets or results for the year.

2.4 Revenue Recognition

2.4.1 Income and Expenses are recognized on accrual basis.

2.4.2 Interest on funds invested in short term deposits with scheduled commercial banks is recognized on accrual basis.

2.4.3 Dividend income earned by the scheme is recognized on the date the share is quoted on ex-dividend basis on principal stock exchange.

2.4.4 Proportionate realized gains on investments out of sales / repurchase proceeds at the time of sale / repurchase of units are transferred to revenue Account from Unit Premium Reserve.

3. Net Asset Value for Growth/Dividend Options The net asset value of the units is determined separately for units issued under the Growth and Dividend Options. For reporting the net asset value of the Growth and Dividend Options, daily income earned, including realized and unrealized gain or loss in the value of investments and expenses incurred by the scheme are allocated to the options in proportion to the value of the net assets.

4. Unit Premium Reserve Account

Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options/Scheme, after an appropriate amount of the issue proceeds and redemption payout is credited or debited respectively to the income equalisation account.

The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investment.

5. Income Equalisation Account

An appropriate part of the sale proceeds or the redemption amount, as the case may be, is transferred to income equalization account. The total distributable surplus (without considering unrealized appreciation) upto the date of issue/ redemption of units has been taken into account for the purpose of ascertaining the amount to be transferred to Equalization Account on a daily basis. The net balance in this account is transferred to the Revenue Account at the end of the year.

6. Unclaimed Redemption.

In line with SEBI circular no. MFD/CIR/9/120 /2000 dated November 24, 2000, the unclaimed redemption and dividend amounts may be deployed by the mutual funds in call money market or money market instruments only and the investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount can be transferred to a pool account and the investors can claim the unclaimed

redemption amount at NAV prevailing at the end of the third year. The income earned on such funds can be used for the purpose of investor education. The AMC should make continuous effort to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points.

7. NOTES ON ACCOUNTS

7.1 Management Fees, Trusteeship Fees, Custodian Fees

Management Fees Management Fees (inclusive of service tax) has been computed at 1.25 % on average net assets calculated on a daily basis.


In accordance with Deed of Trust dated 18th July 1996 between the Settler and the Trustees, the fund has paid or provided an annual fee of Rs.1,00,000/- per Trustee. Trusteeship fees & Expenses are allocated to the schemes on the basis of their daily average net assets.

Custodian Charges HDFC Bank Ltd provides Custodial Services to the scheme for which fees is paid as per the agreement.

7.2 Provision for tax has not been made since the income of the scheme is exempt from tax under Section 10(23D) of the Income Tax Act, 1961.

7.3 Transactions with Brokers in excess of 5% or more of the aggregate purchases and sale of securities made by the Fund have been reported to the Trustees on a Bimonthly basis.

7.3a During the current year , a new software was installed for NAV Accounting that has enabled the transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account, based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the Management on an estimate basis. However, this has no impact on the Net Asset Value of the Scheme.

7.4 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March 31, 2009 the aggregate market value of securities under Sahara Tax Gain Fund but held in the name of Sahara Mutual Fund is Rs. 3,627,011.97.

7.5 Transactions with Associates

Brokerage / Commission on sale of units by the Scheme or by the Asset Management Company given to associates, pursuant to Regulation 25(8): Brokerage to SIFCL A/c CMSD (Associate) has been made for sale of units of the MF as given below:

(Rs.In lakhs) Tax Gain

Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66

(Rs. in lakhs) R. E. A. L

Fund Classic Fund

Power and Natural Resources Fund

Banking & Financial Services Fund

Interval Fund – Quarterly Plan

Sr 1 1.90 0.01 0.85 3.10 0.01

Brokerage to SIFCL A/c CMSD (Associate) made for sale of units of the MF for the previous year ended 31st March 2008. (Rs In lakhs)

Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP – 3 Months

FMP- 3 months Sr 2

FMP – 3 months Sr 3

3.04 2.98 25.28 0.03 0.10 0.07

7.6 The Aggregate value of Investments purchased and sold (Including Redemption) during the year as a percentage of daily average net asset value; Purchases

Year Amount in Rs. % of Daily Average 2008-09 123,699,210 230.57 2007-08 182,354,166 283.93

Sales Year Amount in Rs. % of Daily Average

2008-09 134,157,811 250.07 2007-08 165,030,833 256.96

7.7 Load Charges

Load charges are collected and reimbursed to the Asset Management Company for selling and distribution expenses incurred by it on behalf of scheme.

7.8 Aggregate Appreciation and Depreciation in the value of Investments :

31-Mar-09 31-Mar-08 Asset Class

Appreciation (Rs. In lakhs)

Depreciation (Rs. In lakhs)



Equity Shares 14.99 69.80 10.50 81.89

7.9 Income and Expense Ratio 2008-09 2007-08

Total Income (including net unrealized appreciation and net of loss on sale of investments) to average net assets calculated on a daily basis.

(50.25%) 24.27%

Total Expenditure to average net assets calculated on a daily basis 2.50% 2.50%

7.10 Movements in Unit Capital 7.10.1 Growth Option

Number of Units Amount (Rs) Number of Units Amount (Rs)

As on March 31, 2009




Initial Capital 653,500.000 6,535,000 653,500.000 6,535,000

Opening Balance 581,874.058 5,818,741 542,063.518 5,420,635Units Sold during the year 154,652.651 1,546,526 98,866.125 988,661Units Repurchased during the year (22,566.889) (225,669) (59,055.585) (590,556)Closing Balance 713,959.820 7,139,598 581,874.058 5,818,741

7.10.2 Dividend Option


As on

March 31, 2009 As on



March 31, 2008 Initial Capital - - - -

Opening Balance 3,270,858.462 32,708,585 2,245,616.103 22,456,161Units Sold during the period 668,909.296 6,689,093 1,212,379.587 12,123,796Units Repurchased during the period (216,119.243) (2,161,192) (187,137.228) (1,871,372)

Closing Balance 3,723,648.515 37,236,485 3,270,858.462 32,708,585 7.11 The scheme has declared nil dividend for the year ended March 31, 2009 (PY: Rs.7.50 per unit), No bonus (PY: Nil)

was declared during the year ended March 31, 2009.

7.12 Unclaimed Amounts ( beyond six months) :

Unclaimed Dividend and Redemption amounts as of March 31, 2009 are given below: Scheme name No of

Investors Unclaimed

Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara Tax Gain Fund 213 281,104.71 7 20,363.42

7.13 Investments made by the Schemes of Sahara Mutual Fund in Companies or their subsidiaries that have invested

more than 5% of the net asset value of any scheme, pursuant to Regulation 25(11). Nil

7.14 Portfolio Statement as on 31st March, 2009: Company's Name Qty Mkt Value

( Rs. Lakhs) % to Mkt. Value of

Investments 1) Equity and Equity Related EQUITY SHARES (87.00%) Consumer Non Durables 24.83 Colgate-Palmolive (India) Ltd 4500 21.20 Nestle India Limited 1250 19.46 Hindustan Unilever Ltd 7000 16.63 ITC Limited 7000 12.94 Marico Limited 19000 11.46 Balrampur Chini Mills Ltd 21000 11.09 Sintex Industries Limited 10000 9.79 Power 9.58 National Thermal Power Corp Ltd 9000 16.19 Praj Industries Ltd. 25000 14.61 Reliance Infrastructure Ltd 1700 8.76 Tata Power Company Ltd 1000 7.69 Industrial Capital Goods 8.15 Larsen and Toubro Limited 2000 13.43 Thermax Ltd 6000 10.84 Siemens Ltd 3500 9.38 Crompton Greaves Ltd 7000 8.65 Auto 8.77 Bajaj Auto Ltd 4000 24.74 Mahindra & Mahindra Ltd 3000 11.51 Banks 7.32 Union Bank of India 7500 11.01 HDFC Bank Ltd 1000 9.73 Andhra Bank Limited 21000 9.49 Petroleum Products 4.97 Hindustan Petroleum Corp Ltd 4000 10.77 Bharat Petroleum Corporation Ltd 2600 9.78 Finance 4.62 Reliance Capital Ltd 2800 9.90 Infrastr.Development Finance Co.Ltd 17000 9.20 Consumer Durables 4.25 Voltas Ltd 38000 17.54 Pharmaceuticals 3.29 Cadila Healthcare Ltd 5000 13.58 Paper 3.02 Ballarpur Industries Ltd. 85000 12.50 Gas 2.97 Gas Authority of India Ltd 5000 12.28 Fertilisers 2.81 Deepak Fertilizers & Petro Corp.Ltd 20604 11.62 Ferrous Metals 2.74 Tata Iron & Steel Company Ltd 5500 11.32 Cement 2.39 Ambuja Cements Ltd 14000 9.88 Transportation 2.34 Gateway Distriparks Ltd 18000 9.66 Industrial Products 2.17 SKF India Ltd. 6000 8.98

Telecom - Services 1.82 Idea Cellular Ltd 15000 7.52 Equity Total 399954 413.10 100.00 2) Debt Instruments (a) Listed / awaiting listing on Stock Exchanges

Nil Nil Nil

(b) Privately Placed / Unlisted Nil Nil Nil 3) Money Market Instruments Nil Nil Nil 4) Others - Short Term Deposits Nil Nil Nil 5) Current and Other Assets (13.00%) 61.71 100.00 Grand Total 399954 474.81

7.15 Investments made by the Scheme in shares of Group Companies of the Sponsor – NIL. 7.16 Holdings over 25% of the NAV of the scheme

Particulars As on March 31, 2009 As on March 31, 2008

Number of Investors Nil Nil

Percentage of Holdings N/A N/A

7.17 Contingent Liability: Nil

7.18 Previous year figures have been reclassified/regrouped, wherever necessary, to conform to the

current year’s classification. As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place:Mumbai Date: 22/06/2009


1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Growth Fund (the “Scheme”) as at March 31,

2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.





4. According to the explanations given to us and read with point no. 7.4 of Schedule 8 to the Financial Statements,

appropriate amounts have been transferred by the scheme to Unit Premium Reserve Account and Income Equalization Account the basis for which has been changed in the current year from Management estimates to the best practice followed by the Industry.





For CHATURVEDI & COMPANY

Chartered Accountants

(SN Chaturvedi) Partner

Place: Mumbai M No.040479 Date: 22/06/2009

SAHARA GROWTH FUND BALANCE SHEET AS AT 31st MARCH, 2009

Schedule As at As at March 31, 2009 March 31, 2008 ASSETS (Rs) (Rs)

Investments 1

30,041,425

54,019,090

Deposits 2

-

-

Other Current Assets 3

7,631,313

9,015,445

Total Assets

37,672,738

63,034,535

LIABILITIES

Unit Capital 4

13,129,865

15,391,649

Reserves & Surplus 5

22,081,473

45,406,937

Current Liabilities & Provisions 6

2,461,400

2,235,949

Total Liabilities

37,672,738

63,034,535

NET ASSET VALUE Net Asset Value per unit (Rs.)

Growth Option

46.5737

62.6548

Dividend Option

17.4740

23.4826 Significant Accounitng Policies and Notes to the accounts 8 Schedules 1 to 6 and 8 form an integral part of the Balance Sheet As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place :Mumbai Place: Mumbai Date: 22/06/2009 Date :22/06/2009

SAHARA GROWTH FUND

REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule For the year ended For the year

ended March 31, 2009 March 31, 2008 (Rs) (Rs) INCOME

Dividend

546,490

429,425

Interest Income

609,797

135,478


(17,314,953)

18,226,659 (Other than Inter Scheme Transfer / Sale)

Total Income

(16,158,666)

18,791,562

EXPENSES & LOSSES

Management Fees

622,143

585,921

Trusteeship Fees & expenses

65,583

27,048

Audit Fees

52,500

29,731

Custodian Fees

95,382

29,152


148,013

131,695

Insurance

30,922

22,271


142,854

298,586


96,701

50,792

Total Expenses

1,254,098

1,175,197

Surplus for the Year (excluding unrealised appreciation)

(17,412,764)

17,616,364

Provision /write back for dimunition in value of Investments 7

1,892,442

(4,976,338)


(12,616,213)

27,203,277

Dividend paid, including dividend tax

36,632

(9,510,586)

Surplus/(Deficit) transferred to Reserves

(28,099,904)

30,332,717 Significant Accounting Policies and Notes to the accounts 8 Schedules 7 and 8 form an integral part of the Revenue Account As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place : Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 1 Investments (Refer note 7.15 of Schedule 8 for detailed Portfolio statement) Equity Shares 30,041,425

54,019,090

30,041,425


With Scheduled Bank -

-

- - SCHEDULE 3 Other Current Assets


3,807,583

581,201

Contracts for sale of Investments

681,071

931,983


1,851

46,475


3,017,255

6,132,979

Receivable on issue of Units

123,553

1,322,807

7,631,313


Growth Option: 420333.1710 units of Rs.10 each

4,203,332

6,294,006 (For 2007-08: 629400.6410 units of Rs.10 each)

Dividend Option: 892653.2640 units of Rs.10 each

8,926,533

9,097,642 (For 2007-08: 909764.2450 units of Rs.10 each)

Total

13,129,864

15,391,649 (Refer note 7.11 of Schedule 8) SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 SCHEDULE 5 (Rs) (Rs) Reserves and Surplus

Revenue Reserve


70,688,748

40,356,030

Transfer from Revenue Account

(28,099,904)

30,332,717


42,588,844

70,688,748 Income Equalisation Reserve Balance as at beginning of the year - -

Additions During the year

(12,616,213)

27,203,277

Transfer to Revenue Account

12,616,213

(27,203,277)


-



935,266

3,424,294


(128,863)

(2,489,028)


806,404

935,266 Unit Premium Reserve


(26,217,077)

(18,828,046)


4,903,302

(7,389,030)


(21,313,775)

(26,217,077)

22,081,473


Sundry Creditors

198,682 297,846


5,692 64,848

TDS Payable on Management Fees

- -

Contracts for Purchase of Investments

2,154,721 492,066

Payable on redemption of units

75,616 1,165,543


22,337 59,890

Load Charges payable to AMC

4,352 155,755 (Refer note 7.8 of Schedule 8)

2,461,400 2,235,949

SCHEDULES FORMING PART OF REVENUE ACCOUNT For the period

ended For the period

ended March 31, 2009 March 31, 2008 SCHEDULE 7 (Rs) (Rs) Provision / Write back for dimunition in value of Investments


(5,600,437)

(624,099)


(3,707,995)

(5,600,437)

1,892,442

(4,976,338)

Sahara Growth Fund

PERSPECTIVE HISTORICAL PER UNIT STATISTICS Year Ended Particulars As at As at As at

31-Mar-

09 31-Mar-

08 31-Mar-

07 (a) Gross Income (I) Income other than Profit on sale of Investments 0.88 0.37 1.22 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments 0.0000 0.0000 0.0000 (iii) Income from Profit (net of Loss) on sale other than Inter scheme -13.19 11.84 15.09 (iv) Transfer to revenue account from past year's reserve NA NA NA (b) Aggregate of expenses, write off, amortisation and charges 0.96 0.76 1.32 (c) Net Income -13.26 11.45 14.99 (d) Net unrealised appreciation/(dimunition) in value of Investments -2.21 1.82 2.29 (e) Net Asset Value Growth Plan 46.57 62.65 48.01 Dividend Plan 17.47 23.48 24.30 (f) Repurchase Price during the year** (I) Highest Growth Plan 67.3822 84.1711 52.0967 Dividend Plan 25.2544 31.5532 26.3925 (ii) Lowest Growth Plan 40.3560 47.9495 34.0584 Dividend Plan 15.1349 21.3940 17.5732 (g) Resale Price during the year** (I) Highest Growth Plan 69.5942 86.0649 53.3389 Dividend Plan 26.0835 32.2631 26.9863 (ii) Lowest Growth Plan 41.6808 47.1223 34.8247 Dividend Plan 15.6318 21.5967 17.9388 (h) Ratio of expenses to average daily net assets by Percentage 2.48% 2.50% 2.47% (i) Ratio of income to average daily net assets by Percentage -37.70% 30.05% 34.71% (excluding transfer to revenue account from past year's reserve but including

net change in unrealized appreciation /depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) Per unit calculations based on number of units in issue at the end of the year **Based on the maximum load during the year

SCHEDULE - 8 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2009.

1. INTRODUCTION


Sahara Growth Fund (the “Scheme”) is an open ended growth scheme of Sahara Mutual Fund (the “Fund”). The objective is to achieve capital appreciation by investing in equity and equity related instruments. The Scheme has two options - Growth and Dividend. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The initial issue period of the scheme was from July 22, 2002 to August 12, 2002 and the scheme was reopen for continuous purchase and redemption at prevailing NAV from August 30, 2002.


Sahara Mutual Fund (SMF) has been established as a Trust in accordance with the Indian Trusts Act, 1882, and is sponsored by Sahara India Financial Corporation Limited (“SIFCL”). Sahara Asset Management Company Private Limited (“SAMCPL”), a company incorporated under the Companies Act, 1956, has been appointed as the Asset Management Company (“Investment Manager”) to Sahara Mutual Fund. The Shareholding of Sahara Asset Management Company Private Limited as on March 31, 2009 is as follows:


Equity 17.53 %




2.1. Basis of Accounting.







2.3. Valuation of Investments 2.3.1 Traded Investments

1. Traded equity securities and warrants are valued at the last quoted price on the National Stock Exchange of India Limited (NSE). However, if the securities and warrants are not listed on NSE, the securities are valued at the price quoted at the exchange where it is principally traded. When on a particular valuation day, a security has not been traded on NSE but has been traded on another stock exchange, the value at which it is traded on that stock exchange is used provided it is not more than thirty days prior to the valuation date.

2. The Valuation of Rights shares until they are traded, is done as per the method given below:

Vr = n x (Pex – Pof) m Where Vr = Value of rights n = no. of rights offered m = no. of original shares held Pex = Ex-rights price Pof = Rights Offer Price Where the rights are not treated pari-passu with the existing shares, suitable adjustment should be made to the value of rights. Where it is decided not to subscribe for the rights but to renounce them and renunciations are being traded, the rights can be valued at the renunciation value.


Non-traded / thinly traded / privately placed equity securities including those not traded within thirty days are valued at fair value as per procedures determined by SAMCPL and approved by the Trustee in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India (SEBI) from time to time.


a) Money Market Instruments are valued at cost plus accrued interest. b) Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.

c) Traded treasury bills, certificate of deposits and commercial paper are valued at the yield at which they are currently traded. Non-traded treasury bills, certificate of deposits and commercial paper including those not traded for a period of seven days are valued at cost plus accrued interest.

d) Investments in mutual fund schemes are valued based on the net asset value of the respective schemes as on the valuation date.

2.3.4 Unrealized Appreciation / Depreciation.

In accordance with the Guidance Note on Accounting for Investments in the Financial Statements of Mutual Funds issued by the Institute of Chartered Accountants of India, the unrealized appreciation determined separately for each individual investment is directly transferred to the “Unrealized Appreciation Reserve Account” i.e. without routing it through the revenue account.

The provision for depreciation in value of investments determined separately for each individual investment is recognized in the revenue account. The loss on investments sold / transferred during the year is charged to revenue account, instead of being first adjusted against the provision for depreciation, if already created in the prior year, as recommended by the said Guidance Note. However, this departure from the Guidance Note does not have any net impact on the Scheme’s net assets or results for the year.






3. Net Asset Value for Growth/Dividend Options:

The net asset value of the units is determined separately for units issued under the Growth and Dividend Options. For reporting the net asset value of the Growth and Dividend Options, daily income earned, including realized and unrealized gain or loss in the value of investments and expenses incurred by the scheme are allocated to the options in proportion to the value of the net assets.


Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options/Scheme, after an appropriate of the issue proceeds and redemption payout is credited or debited respectively to the income equalization account. The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.




In line with SEBI circular no. MFD/CIR/9/120/2000 dated November 24, 2000, the unclaimed redemption and dividend amounts may be deployed by the mutual funds in call money market or money market instruments only and the investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount can be transferred to a pool account and the investors can claim the unclaimed redemption amount at NAV prevailing at the end of the third year. The income earned on such funds can be used for the purpose of investor education. The AMC should make continuous effort to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points.

7. NOTES TO THE ACCOUNTS



Trusteeship Fees & Expenses In accordance with Deed of Trust dated 18th July 1996 between the Settler and the Trustees, the fund has paid or provided an annual fee of Rs.1,00,000/- per Trustee. Trusteeship fees & expenses are allocated to the schemes on the basis of their daily average net assets. Custodian Charges HDFC Bank provides Custodial services to the scheme for which fees is paid as per the agreement.

7.2 Provision for tax has not been made since the income of the scheme is exempt from tax under Section 10(23D) of the

Income Tax Act, 1961.

7.3 Transactions with Brokers in excess of 5% or more of the aggregate purchases and sale of securities made by the Fund have\s been reported to the Trustees on a Bimonthly basis.

7.4 During the current year , a new software was installed for NAV Accounting that has enabled

the transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account ,based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the management on an estimate basis. However, this has no impact on the Net Asset Value of the scheme.

7.5 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March 31,

2009 the aggregate market value of securities under Sahara Growth Fund but held in the name of Sahara Mutual Fund is Rs.3,017,606.71.


Brokerage / Commission on sale of units by the Scheme or by the Asset Management Company given to associates, pursuant to Regulation 25(8):

Brokerage to SIFCL A/c CMSD (Associate) has been made for sale of units of the MF as given below: (Rs.In lakhs)

Tax Gain Fund

Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




Sr 1 1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19

(Rs.In lakhs) Wealth Plus

Fund Infrastructure

Fund R. E. A. L

Fund FMP

3 months FMP

3 months Series 2

FMP 3 months Series 3

3.04 2.98 25.28 0.03 0.10 0.07

7.7 The aggregate value of Investment purchased and sold(Including Redemption) during the year as a percentage of daily average net asset value; Purchases

Year Amount (Rs) % of Daily average 2008-09 111,723,312 220.99 2007-08 203,618,625 433.11

Sales

Year Amount (Rs) % of Daily average

2008-09 137,464,556 271.91 2007-08 174,430,740 371.03

7.8 Load Charges

Load charges are collected and reimbursed to the Asset Management Company for Selling and distribution expenses incurred by it on behalf of scheme.







Equity Shares 8.06 37.08 9.35 56.00

7.10 Income and Expense Ratio

2008-09 2007-08 Total Income (including net unrealized appreciation and net of loss on sale of investments) to average net assets calculated on a daily basis.

(37.70 %) 30.05%

Total Expenditure to average net assets calculated on a daily basis

2.48% 2.50%

7.11 Movements in Unit Capital:

7.11.1 Growth Option


As on March 31,

2009 As on March 31,



2008 Initial Capital 1,256,545.617 12,565,456 1,256,545.617 12,565,456Opening Balance 629,400.733 6,294,007 313,845.341 3,138,453Units Sold during the year 474,243.651 4,742,437 525,623.579 5,256,236Units Repurchased during the year (683,311.121) (6,833,111) (210,068.187) (2,100,682)Closing Balance 420,333.263 4,203,333 629,400.733 6,294,007



As on March 31,




2008 Initial Capital 308,657.065 3,086,571 308,657.065 3,086,571Opening Balance 909,764.235 9,097,642 911,067.851 9,110,679Units Sold during the year 144,808.498 1,448,085 677,772.561 6,777,725Units Repurchased during the year (161,919.479) (1,619,195) (679,076.177) (6,790,762)Closing Balance 892,653.254 8,926,532 909,764.235 9,097,642

7.12 The scheme has declared nil dividend for the year ended March 31, 2009 (PY: 7.50 per unit). There was no bonus

declared during the year ended March 31, 2009 (PY: Nil). 7.13 Unclaimed Amounts ( beyond six months) :

Unclaimed Redemption and Dividend during the year ended March 31, 2009 are as below: Scheme name No of

Investors Unclaimed Dividend

(Rs)

No. of Investors

Unclaimed Redemption

(Rs) Sahara Growth Fund 7 22,336.71 2 19,528.70



7.15 Portfolio Statement as on March 31, 2009

Company's Name Qty Mkt Value ( Rs. Lakhs)

% to Mkt. Value of

Investments 1) Equity and Equity Related EQUITY SHARES (85.41%)

Industrial Capital Goods 13.94 Bharat Heavy Electricals Ltd 1000 15.11 Larsen and Toubro Limited 2000 13.43 Siemens Ltd 2000 5.36 Asea Brown Boveri Ltd 1000 4.27 Crompton Greaves Ltd 3000 3.71 Consumer Non Durables 12.98 Hindustan Unilever Ltd 8000 19.00 ITC Limited 7000 12.94 Colgate-Palmolive (India) Ltd 1500 7.07 Petroleum Products 12.44

Bharat Petroleum Corporation Ltd 4000 15.04 Reliance Petroleum Ltd 15000 14.27 Hindustan Petroleum Corp Ltd 3000 8.08 Banks 12.09 State Bank of India 1400 14.94 ICICI Bank Ltd 3500 11.65 HDFC Bank Ltd 1000 9.73 Power 10.02 National Thermal Power Corp Ltd 8000 14.39 Tata Power Company Ltd 1300 9.99 Power Grid Corporation Of India Ltd 6000 5.74 Auto 8.77 Bajaj Auto Ltd 2500 15.46 Mahindra & Mahindra Ltd 2000 7.67 Hero Honda Motors Ltd 300 3.21 Telecom - Services 6.59 Reliance Communication Ventures Ltd 6000 10.49 Idea Cellular Ltd 18600 9.32 Gas 5.72 Gas Authority of India Ltd 7000 17.19 Oil 5.21 Oil & Natural Gas Corp Ltd 1300 10.14 Cairn India Ltd 3000 5.52 Pharmaceuticals 3.33 Sun Pharmaceuticals Industries Ltd 900 10.00 Consumer Durables 3.07 Voltas Ltd 20000 9.23 Metals 3.02 Tata Iron & Steel Company Ltd 4400 9.06 Construction 2.80 Jai Prakash Associates Ltd. 10000 8.41 Equity Total 144700 300.41 100.00 (b) Unlisted Nil Nil Nil 2) Debt Instruments Nil Nil Nil (a) Listed / awaiting listing on Stock Exchanges Nil Nil Nil (b) Privately Placed / Unlisted Nil Nil Nil (c ) Securitized Debt Nil Nil Nil 3) Money Market Instruments Nil Nil Nil 4) Short Term Deposits Nil Nil Nil 5) Others - Current Assets (14.59 %) Nil 51.34 100.00 Grand Total 144700 351.75

7.16 Investments made by the Scheme in shares of Group Companies of the Sponsor – NIL.

7.17 Holdings over 25% of the NAV of the scheme as of March 31, 2009.


Number of Investors Nil 1

Percentage of Holdings N/A 29.70%

7.17A Contingent Liability: Nil

7.18 Previous year figures have been reclassified/regrouped, wherever necessary, to conform to the current year’s classification.

As per our attached report of even date


1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Midcap Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. According to the explanations given to us and read with point no. 7.3 of Schedule 9 to the Financial Statements, appropriate amounts have been transferred by the scheme to Unit Premium Reserve Account and Income Equalization Account the basis for which has been changed in the current year from Management estimates to the best practice followed by the Industry. 5. In our opinion and to the best of our information and according to the explanations given to us:

5.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and give a true and fair view in conformity with the Accounting principles generally accepted in India i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the deficit for the year ended on that date.


For CHATURVEDI & COMPANY Chartered Accountants

(S N Chaturvedi)

Partner Place: Mumbai M No.040479 Date : 22/06/2009

SAHARA MID-CAP FUND

BALANCE SHEET AS AT 31st MARCH, 2009 Schedule As at As at March 31, 2009 March 31, 2008 ASSETS (Rs) (Rs)

Investments 1

39,988,967

79,462,163

Deposits 2

-

-


9,593,220

15,200,494

Total Assets

49,582,187

94,662,657

LIABILITIES Unit Capital 4

51,911,645 54,476,196


(5,455,705)

34,884,009


3,126,247

5,302,452

Total Liabilities

49,582,187

94,662,657

NET ASSET VALUE

Net Asset Value per unit (Rs.) Growth Option

11.6046

21.2467 Dividend Option

7.8794

14.4255 Bonus Option

11.6046

21.2467 Growth Auto Earning Payout

11.6046



SAHARA MID-CAP FUND

REVENUE ACCOUNT FOR THE PERIOD ENDED MARCH 31, 2009

Schedule For the period

ended For the period


Dividend 1,069,690

817,385

Interest and Discount Income 7 735,689

259,985


(40,300,789)


Total Income

(38,495,410) 49,875,059

EXPENSES & LOSSES

Derivatives Loss (including brokerage)

-

154,378

Management Fees

840,283

1,382,700


81,940

58,966

Audit Fees

65,594

64,816

Custodian Fees

111,442

61,944


246,968

382,542

Insurance

38,635

48,552


178,484

651,554


120,820

110,730

Total Expenses

1,684,166

2,916,182

Surplus for the Year (excluding unrealised appreciation)

(40,179,576)

46,958,876

Provision / Write back for dimunition in value of investments 8

3,048,952

(14,283,151)


(32,060,228)

19,502,204

Dividend Inculding Distribution Tax

-

(21,700,193)

Surplus / (Deficit) transferred to Revenue Reserve

(69,190,852)

30,477,737 Significant Accounting Polices Notes to the accounts 9 Schedules 7 to 9 form an integral part of the Revenue Account As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 (Rs) (Rs)

SCHEDULE 1 Investments (Refer note 7.15 of Schedule 9 for detailed Portfolio statement)

Equity Shares

39,988,967

79,462,163

Certificate of Deposits

-

-

39,988,967


With Scheduled Bank -

-

-

-

SCHEDULE 3 Other Current Assets


1,592,914

688,348

Contracts for Sale of Investments

191,216

7,454,528

Outstanding & Accrued Income

5,409

5,662


7,803,681

6,179,015


-

872,941

9,593,220


Bonus Plan

256,595

256,595 25659.4910 units of Rs. 10 each (For 2007-08 25659.4910 units of Rs. 10 each)

Dividend Plan

37,087,736

38,723,297 3708773.6470 units of Rs. 10 each (For 2007-08 3872329.6920 units of Rs. 10 each)

Growth Plan

14,249,712

15,176,376 1424971.1520 units of Rs. 10 each (For 2007-081517637.5730 units of Rs. 10 each)

Auto Earnings Payout Plan

317,602

319,929 31760.242 units of Rs. 10 each (For 2007-08 31992.9130 units of Rs. 10 each)

Total

51,911,645

54,476,196 (Refer Notes on Accounts 7.11 of Schedule 9) SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 SCHEDULE 5 (Rs) (Rs) Reserves and Surplus Revenue Reserve


62,385,367

31,907,630


(69,190,852)

30,477,737


(6,805,485)



(32,060,228)

19,502,204


32,060,228

(19,502,204)


-



2,696,912

9,850,698


(1,696,492)

(7,153,786)


1,000,420

2,696,912 Unit Premium Reserve


(30,198,270)

(3,527,258)


30,547,630

(26,671,013)


349,360

(30,198,270)

(5,455,705)


Sundry Creditors

192,855

523,035


7,587

97,658

Contract for purchase of investments 2,306,111

3,583,855 Payable on Redemption of Units

477,857 1,084,074


141,401

1,200

Load charges payable to AMC

436


3,126,247

5,302,452 SCHEDULES FORMING PART OF REVENUE ACCOUNT

For the period ended

For the period ended

March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 7 Interest and Discount Income

Non Convertible Debentures

-

35

Fixed Deposits

-

83,342

Reverse Repo arrangements 735,689

176,608

Commercial papers

-

-

Treasury Bills

-

-

Others

-

- 735,689 259,985 SCHEDULE 8 Provision / Write back for dimunition in value of investments


(18,216,391)

(3,933,240)


(15,167,439)

(18,216,391)

3,048,952

(14,283,151)

SAHARA MIDCAP FUND PERSPECTIVE HISTORICAL PER UNIT STATISTICS

Year Ended Particulars As at As at As at

31-Mar-

08 31-Mar-

08 31-Mar-

07 (a) Gross Income (I) Income other than Profit on sale of Investments 0.35 0.20 0.44 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments 0.00 0.00 0.00 (iii) Income from Profit (net of Loss) on sale other than Inter scheme -7.76 8.96 4.42 (iv) Transfer to revenue account from past year's reserve NA NA NA

(b) Aggregate of expenses, write off, amortisation and charges 0.32 0.54 0.48 (c) Net Income -7.74 8.62 4.38 (d) Net unrealised appreciation/(dimunition) in value of Investments -2.99 -2.85 0.92 (e) Net Asset Value Growth Plan 11.6046 21.2467 17.1888 Dividend Plan 7.8794 14.4255 15.3419 Bonus Plan 11.6051 21.2467 17.1889 Growth - Auto Earning Payout 11.6180 21.2467 17.1890 (f) Repurchase Price during the year** (I) Highest Growth Plan 23.8996 32.8499 19.8860 Dividend Plan 16.2266 22.3034 17.7521 Bonus Plan 24.2052 28.6434 18.5486 Growth - Auto Earning Payout 24.2052 31.2666 19.7467 (ii) Lowest Growth Plan 9.9975 16.6440 12.9864 Dividend Plan 6.7882 13.2128 11.5929 Bonus Plan 10.1253 17.1410 15.5104 Growth - Auto Earning Payout 10.1253 17.8656 13.5345 (g) Resale Price during the year** (I) Highest Growth Plan 24.9998 33.5157 20.3334 Dividend Plan 16.9736 22.7554 18.1515 Bonus Plan 24.9998 31.5662 18.7464 Growth - Auto Earning Payout 24.9998 33.5157 19.5755 (ii) Lowest Growth Plan 10.4577 17.2715 12.9864 Dividend Plan 7.1008 13.5829 12.1394 Bonus Plan 10.4577 17.3700 14.5213 Growth - Auto Earning Payout 10.4577 17.2715 16.7698 (h) Ratio of expenses to average daily net assets by Percentage 2.49% 2.50% 2.50% (i) Ratio of income to average daily net assets by Percentage -78.01% 31.10% 29.97% (excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation /depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annualised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period

SCHEDULE - 9 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE PERIOD ENDED MARCH 31, 2009

1. INTRODUCTION


Sahara Midcap Fund (the “Scheme”) is an open ended growth scheme of Sahara Mutual Fund (the “Fund”). The objective is to achieve long term capital growth at medium level of risks by investing primarily in mid –cap stocks. The Scheme has four plans – Dividend, Growth, Growth –Auto Earnings Payout and Bonus. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The initial issue period of the scheme was from November 29, 2004 to December 22, 2004 and the scheme was reopened for continuous purchase and redemption at prevailing NAV from January 17, 2005.



Name of the Shareholder Type of Holdings Holding

Sahara India Financial Corporation Limited Equity 48.64 % Sahara India Corp Investment Limited Equity 17.53 % Sahara Prime City Limited (formerly Sahara India Investment Corporation Limited )

Equity 17.53 %



2 SIGNIFICANT ACCOUNTING POLICIES 2.1. Basis of Accounting.

The Scheme maintains its books of account on an accrual basis. These financial statements have been prepared in accordance with the Accounting Policies and Standards specified in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, (the“Regulation”), and amendments thereto, as applicable.


2.2..1 Investments are accounted on trade dates at cost including brokerage, stamp duty and other charges which are included in the acquisition of investments.






1.Traded equity securities and warrants are valued at the last quoted price on the National Stock Exchange of India Limited (NSE). However, if the securities and warrants are not listed on NSE, the securities are valued at the price quoted at the exchange where it is principally traded. When on a particular valuation day, a security has not been traded on NSE but has been traded on another stock exchange, the value at which it is traded on that stock exchange is used provided it is not more than thirty days prior to the valuation date.

2.The Valuation of Right shares until they are traded, is done as per the method given below:

Vr = n x (Pex – Pof) m Where Vr = Value of rights n = no. of rights offered m = no. of original shares held Pex = Ex-rights price Pof = Rights Offer Price



Non-traded / thinly traded / privately placed equity securities including those not traded within thirty days are valued at fair value as per procedures determined by SAMCPL and approved by theTrustee in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India (SEBI) from time to time.


a. Money Market Instruments are valued at cost plus accrued interest. b. Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.



2.3.4 Unrealised Appreciation/Depreciation.

In accordance with the Guidance Note on Accounting for Investments in the Financial Statements of Mutual Funds issued by the Institute of Chartered Accountants of India, the unrealized appreciation determined separately for each individual investment is directly transferred to the “Unrealised Appreciation Reserve Account” i.e. without routing it through the revenue account. The provision for depreciation in value of investments determined separately for each individual investment is recognized in the revenue account. The loss on investments sold / transferred during the year is charged to revenue account, instead of being first adjusted against the provision for depreciation, if already created in the prior year, as recommended by the said Guidance Note. However, this departure from the Guidance Note does not have any net impact on the Scheme’s net assets or results for the year.

2 .4 Revenue Recognition

i. Income and Expenses are recognized on accrual basis.

ii. Interest on funds invested in short term deposits with scheduled commercial banks is recognized on accrual basis.

iii. Dividend income earned by the scheme is recognized on the date the share is quoted on ex-dividend basis on principal stock exchange.

iv. Proportionate realized gains on investments out of sales / repurchase proceeds at the time of sale / repurchase of units are transferred to revenue Account from Unit Premium Reserve.

3. Net Asset Value for Growth / Dividend Options:

The net asset value of the units is determined separately for units issued under the Growth, Dividend Options, Bonus and Auto Earning Payout Option. For reporting the net asset value of the Growth and Dividend Options, daily income earned, including realized and unrealized gain or loss in the value of investments and expenses incurred by the scheme are allocated to the options in proportion to the value of the net assets.


Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options / Scheme, after an appropriate of the issue proceeds and redemption payout is credited or debited respectively to the income equalization account. The unit premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.

5. Income Equalisation Account`



In line with SEBI circular no. MFD/CIR/9/120 /2000 dated November 24, 2000, the unclaimed redemption and dividend amounts may be deployed by the mutual funds in call money market or money market instruments only and the investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount can be transferred to a pool account and the investors can claim the unclaimed redemption amount at NAV prevailing at the end of the third year. The income earned on such funds can be used for the purpose of investor education. The AMC should make continuous effort to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points.


7.1 Management Fees , Trusteeship Fees, Custodian Fees

Management Fees

Management Fees (inclusive of service tax) has been computed at 1.24 % on average net assets calculated on a daily basis.


In accordance with Deed of Trust dated 18th July 1996 between the Settler and the Trustees, the fund has paid or provided an annual fee of Rs.1,00,000/- per Trustee. Trustee fees & expenses are allocated to the schemes on the basis of their daily average net assets. Custodian Charges

HDFC Bank provides Custodial services to the scheme for which fees is paid as per the agreement.


7.3 During the current year , a new software was installed for NAV Accounting that has enabled the

transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account, based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the Management on an estimate basis. However , this has no impact on the Net Asset Value of the Scheme.

7.4 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at

March 31, 2009 the aggregate market value of securities held under Sahara Midcap Fund but held in the name of Sahara Mutual Fund is Rs.7,804,590.06.

7.5 Transactions with Brokers in excess of 5% or more of the aggregate purchases and sale of securities made

by the Fund have / has been reported to the Trustees on a Bi-monthly basis.




Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




Sr 1 1.90 0.01 0.85 3.10 0.01

Brokerage to SIFCL A/c CMSD (Associate) made for sale of units of the MF for the previous year ended 31st March 2008.

(Rs In lakhs) Tax Gain

Fund Gilt

Fund Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19


Fund Infrastructure

Fund R. E. A. L

Fund FMP

3 months FMP

3 months Series 2


3.04 2.98 25.28 0.03 0.10 0.07

7.7 The Aggregate value of Investment purchased and sold(Including Redemption) during the year as a percentage of daily average net asset value; Purchases


Sales


7.8 Load Charges

Load charges are collected and reimbursed to the Asset Management Company for Selling and distribution expenses incurred by it on behalf of schemes.


31-Mar-09 31-Mar-08 Scheme





Equity Shares 10.00 151.67 26.97 182.16


2008-09 2007-08

Total Income (including net unrealized appreciation and net of loss on

sale of investments) to average net assets calculated on a daily basis.

(78.01 %) 31.10 %

Total Expenditure to average net assets calculated on a daily basis. 2.49% 2.50%

7.11 Movements in Unit Capital: 7.11.1 Growth Option


As on March 31,

2009 As on March

31, 2009 As on March 31,


2008

Initial Capital 38,747,086.657 387,470,866 38,747,086.657 387,470,866

Opening Balance 1,517,637.573 15176376 2,013,886.274 20,138,863Units Sold during the year 58,235.956 582,360 225,177.723 2,251,777Units Repurchased during the year (150,902.377) (1,509,024) (721,426.424) (7,214,264)

Closing Balance 1,424,971.152 14,249,712 1,517,637.573 15,176,376 7.11.2 Dividend Option


As on

March 31, 2009

As on

March 31,

2009

As on

March 31, 2008

As on

March 31, 2008

Initial Capital 51,626,396.716 516,263,968 51,626,396.716 516,263,968Opening Balance 3,872,329.692 38,723,297 4,331,714.836 43,317,148Units Sold during the year 42,344.024 423,440 1,229,155.642 12,291,556Units Repurchased during the year (205,900.069) (2,059,001) (1,688,540.786) (16,885,407)Closing Balance 3,708,773.647 37,087,736 3,872,329.692 38,723,297

7.11.3 Bonus Option


As on March 31,

2009

As on March 31,

2009 As on


March 31, 2008 Initial Capital 46,030.000 460,300 46,030.000 460,300Opening Balance 25,659.491 256,595 19,653.176 196,532Units Sold during the year 506.758 5,068 9,623.490 96,235Units Repurchased during the year (506.758) (5,068) (3,617.175) (36,172)Closing Balance 25,659.491 256,595 25,659.491 256,595

7.11.4 Growth – Auto Earnings Payout Option


As on

March 31, 2009

As on March 31,

2009 As on


March 31, 2008 Initial Capital 415,034.300 4,150,343 415,034.300 4,150,343Opening Balance 31,992.913 319,929 65,744.456 657,445Units Sold during the year 1,049.982 10,500 3,283.618 32,836Units Repurchased during the year (1,282.653) (12,827) (37,035.161) (370,352)Closing Balance 31,760.242 317,602 31,992.913 319,929

7.12 The Scheme has declared nil dividend during the year ended March 31, 2009. (PY: 5.00 per unit). There was no Bonus declared during the year ended March 31, 2008. (PY :Nil)

7.13 Unclaimed Amounts ( beyond six months):

Unclaimed Dividend and Redemption amounts as on March 31, 2009 are as below: Scheme name No of

Investors Unclaimed

Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara Midcap Fund 84 141,400.01 51 267,352.14

7.14 Investments made by the Schemes of Sahara Mutual Fund in Companies or their subsidiaries that have

invested more than 5% of the net asset value of any scheme, pursuant to Regulation 25(11). Nil


Company's Name Qty Mkt Value (

Rs. Lakhs)

% to Mkt.

Value of

Investments

1) Equity & Equity Related

EQUITY SHARES (86.13%)

Consumer Non Durables 24.78

Colgate-Palmolive (India) Ltd 5000 23.56

Marico Limited. 35000 21.11

ITC Limited 6000 11.09

EID Parry (India) Ltd. 6500 9.18

Bajaj Hindustan Ltd 19000 9.11

Triveni Engineering And Industries Ltd 22000 8.69

Balrampur Chini Mills Ltd 16000 8.45

Bata India Ltd 7592 7.89

Industrial Capital Goods 13.27

Thermax Ltd 7000 12.65

Crompton Greaves Ltd 9000 11.12

Elecon Engineering Company Limited 30000 9.32

Exide Industries Ltd 19990 8.27

McNally Bharat Engineering Co. Ltd 17131 6.64

Voltamp Transformers Ltd 1500 5.08

Banks 10.00

Union Bank of India 9000 13.22

Bank of India 5000 10.97

Yes Bank Ltd 16000 8.00

City Union Bank Ltd 64000 7.81

Fertilisers 6.59

Chambal Fertilisers & Chemicals Ltd 30000 12.56

Coromandel Fertilisers Ltd 9000 8.15

Deepak Fertilizers & Petro Corp.Ltd 10000 5.64

Finance 5.69

Infrastr.Development Finance Co.Ltd 27000 14.61

Reliance Capital Ltd 2300 8.13

Auto 5.41

Bajaj Auto Ltd 3500 21.65

Industrial Products 5.19

Sintex Industries Limited 11250 11.01

SKF India Ltd. 6500 9.73

Gas 4.83

Petronet LNG Limited 25000 9.71

Gujarat State Petronet Ltd 25000 9.59

Consumer Durables 4.04

Voltas Ltd 35000 16.15

Petroleum Products 3.90

Hindustan Petroleum Corp Ltd 3000 8.08

Bharat Petroleum Corporation Ltd 2000 7.52

Transportation 3.62

Gateway Distriparks Ltd 27000 14.49

Paper 2.94

Ballarpur Industries Ltd. 80000 11.76

Construction 2.63

GVK Power & Infrastructure Ltd 45000 10.53

Chemicals 2.53

Rashtriya Chemicals & Fertilisers Ltd 27000 10.11

Pharmaceuticals 2.49

Dishman Pharmaceuticals Ltd 10000 9.95

Media 2.09

Sun TV Limited 5000 8.36

Equity Total 679263 399.84 100.00

2) Debt Instruments

(a) Listed / awaiting listing on Stock Exchanges Nil Nil Nil

(b) Privately Placed / Unlisted Nil Nil Nil

3) Money Market Instruments Nil Nil Nil

4) Others - Short Term Deposits Nil Nil Nil

5) Current and Other Assets (13.87%) 64.41 100

Grand Total 679263 464.26


7.17 Holdings over 25% of the NAV of the scheme as of March 31, 2009:

Particulars As on March 31, 2009 As on March 31, 2008 Number of Investors NIL NIL Percentage of Holdings N/A N/A

7.17A Contingent Liability: Nil 7.18 Previous year figures have been reclassified / regrouped wherever necessary to conform to

the current year’s classification. As per our attached report of even date



1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Infrastructure Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.


5.1The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and give a true and fair view in conformity with the Accounting principles generally accepted in India




(SN Chaturvedi)


SAHARA INFRASTRUCTURE FUND BALANCE SHEET AS AT MARCH 31, 2009


Investments 1

61,991,964

105,292,401


21,299,891

16,719,866

Deferred Revenue Expenditure 3

7,507,892

11,241,382

Total Assets

90,799,747

133,253,649 LIABILITIES Unit Capital 4

102,678,374 102,537,164


(23,105,205)

24,365,422


11,226,578

6,351,063

Total Liabilities 90,799,747

133,253,649

NET ASSET VALUE Net Asset Value per unit (Rs.) i) Fixed Pricing - Dividend 6.5150 10.5140 ii) Fixed Pricing - Growth 8.9077 14.3777 iii) Variable Pricing - Dividend 6.6814 10.7029 iv) Variable Pricing - Growth 9.0949 14.5691 Significant Accounting Policies and Notes to the accounts 9 Schedules 1 to 6 and 9 form an integral part of the Balance Sheet As per our attached report of even date


SAHARA INFRASTRUCTURE FUND REVENUE ACCOUNT FOR THE YEAR ENDED March 31, 2009

Schedule As at March31,

2009 As at March31,

2008 (Rs) (Rs) INCOME Dividend Income 891,948 706,747 Interest Income 7 1,282,764 387,135

Profit on Sale / Redemption of Investments (Net)

(46,233,246) 77,296,463 (Other than Inter Scheme Transfer / Sale)

Total Income

(44,058,534) 78,390,345 EXPENSES & LOSSES

Management Fees

665,634

984,012


106,388

67,971

Audit Fees

85,165

74,714

Deferred Revenue Expenditure written off

3,733,490

3,743,719

Custodian Fees

153,397

69,446


309,093

505,774

Insurance

50,162

55,966


231,737

750,973


156,869

127,641

Total Expenses

5,491,934

6,380,216


(49,550,467)

72,010,129 Provision/ write back for dimunition in value of investments 8

3,919,612

(17,529,025)


477,428

(294,069)

Dividend Including Distribution Tax

-

(39,783,816)

Net Surplus transferred to Revenue Reserve

(45,153,427)

14,403,219 Significant Accounting Policies and Notes to the accounts 9 Schedules 7 to 9 form an integral part of the Revenue Account As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET

As at March 31,

2009

As at March 31,

2008 (Rs) (Rs) SCHEDULE 1 Investments (Refer Note 8.15 of Schedule 9 for detailed Portfolio statement)

Equity Shares

61,991,964

105,292,401


-

-

61,991,964

105,292,401 SCHEDULE 2 Other Current Assets


6,635,520

554,026

Contracts for sale of investments

1,020,251

5,240,426


13,637,532

8,748,830

Outstanding and accrued income

6,588

18,750


-

2,157,834

21,299,891

16,719,866 SCHEDULE 3 Deferred Revenue Expenditure Incurred during the period 11,241,382 14,985,100 Less:- Amortised during the period 3,733,490 3,743,718

At the end of the period 7,507,892 11,241,382 SCHEDULE 4 Unit Capital

Fixed Plan Dividend

23,418,217

24,651,877 Fixed Pricing - Dividend Option 2341821.7490 units of Rs.10 each (For 2007-2008 2465187.6850 units of Rs.10 each)

Fixed Plan Growth

19,078,179

17,454,648 Fixed Pricing - Growth Option 1907817.8810 units of Rs.10 each (For 2007-2008 1745464.8250 units of Rs.10 each)

Variable Plan Dividend

30,714,985

31,436,836 Variable Pricing - Dividend Option 3071498.4990 units of Rs.10 each (For 2007-2008 3143683.5880 units of Rs.10 each)

Variable Plan Growth

29,466,993

28,993,803 Variable Pricing - Growth Option 2946699.2560 units of

Rs.10 each

(For 2007-2008 2899380.33 units of Rs.10 each)

Total

102,678,374

102,537,164 (Refer Note 8.11 of Schedule 9) SCHEDULES FORMING PART OF THE BALANCE SHEET SCHEDULE 5 Reserves and Surplus Revenue Reserve


12,424,904

(1,978,314)


(45,153,427)

14,403,218


(32,728,523)



477,428

(294,069)


(477,428)

294,069


-



3,711,561

14,805,227


(2,349,028)

(11,093,665)


1,362,533



8,228,956

(3,257,241)


31,829

11,486,196


8,260,784

8,228,956

(23,105,205)

24,365,421 As at As at

SCHEDULE 6 March 31,

2009 March 31,

2008 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

107,733

389,615


8,363

69,437

Dividend Payable to Unitholder

-

430

Contract for purchase of Investments 10,255,806 2,492,287


613,170

2,803,604

Distribution Payable

239,531

-


1,975


11,226,578

6,351,063 SCHEDULES FORMING PART OF REVENUE ACCOUNT SCHEDULE 7 Interest & Discount Income


- 47,506

Fixed Deposit

-

- Commercial Paper/Certificate of Deposit 259,845 1,314

Treasury Bills

8,870

- Reverse Repo 1,014,050 338,315

1,282,764

387,135 SCHEDULE 8 Provision / Write back for dimunition in value of Investments


(18,989,101)

(1,460,076)


(15,069,490)

(18,989,101)

3,919,612

(17,529,025)

SAHARA INFRASTRUCTURE FUND Perspective Historical Per unit statistics

Particulars As at As at As at

31-Mar-09 31-Mar-08 31-Mar-07

(Rs. Per

Unit) (Rs. Per

Unit) (Rs. Per

Unit) (a) Gross Income (i) Income other than Profit on sale of Investments 0.21 0.11 0.361993254 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments (iii) Income from Profit (net of Loss) on sale other -4.50 1.80 0.064681984 than Inter scheme (iv) Transfer to revenue account from past year's 0.00 0.00 0 reserve NA NA NA

(b) Aggregate of expenses, write off, amortisation and charges 0.52 0.61 0.585962302

(c) Net Income -4.81 1.30 -

0.159287063 (d) Net unrealised appreciation/(dimunition) in value of Investments -1.33 -1.49 0.947405465 (e) Net Asset Value Fixed Pricing - Dividend Plan 6.5150 10.5140 10.6356 Fixed Pricing - Growth Plan 8.9077 14.3777 10.6356 Variable Pricing - Dividend Plan 6.6814 10.7029 10.7035 Variable Pricing - Growth Plan 9.0949 14.5691 10.7035 (f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 11.1067 19.1220 11.6966 Fixed Pricing - Growth Plan 15.1892 20.8569 11.7048 Variable Pricing - Dividend Plan 11.3147 19.334 11.767 Variable Pricing - Growth Plan 15.4020 21.1081 11.767 (ii) Lowest Fixed Pricing - Dividend Plan 5.7296 9.7707 7.2998 Fixed Pricing - Growth Plan 7.8338 10.1619 7.4971 Variable Pricing - Dividend Plan 5.8733 10.1222 7.5434 Variable Pricing - Growth Plan 7.9949 10.2270 7.505 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 11.6181 19.5522 11.9598 Fixed Pricing - Growth Plan 15.8884 21.3262 11.9682 Variable Pricing - Dividend Plan 11.8355 19.769 12.0228 Variable Pricing - Growth Plan 16.1110 21.583 12.0228 (ii) Lowest Fixed Pricing - Dividend Plan 5.9934 9.7707 7.6358 Fixed Pricing - Growth Plan 8.1944 10.4955 7.6358 Variable Pricing - Dividend Plan 6.1437 10.1689 7.644 Variable Pricing - Growth Plan 8.3629 10.5946 7.644 (h) Ratio of expenses to average daily net assets by Percentage 1.82% 1.82% 0.0188 (i) Ratio of income to average daily net assets by Percentage -59.69% 43.50% 0.085064043 (excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annaulised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period

SCHEDULE - 9 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE PERIOD ENDED MARCH 31, 2009.

1. INTRODUCTION


Sahara Infrastructure Fund (the “Scheme”) is an open ended growth scheme of Sahara Mutual Fund (the “Fund”). The objective is to provide income distribution and / or medium to long term capital gains by investing predominantly in equity / equity related instruments of companies in the infrastructure sector. The Scheme has two options – Fixed Pricing Option and Variable Pricing Option and sub options namely (1) Growth and (ii) Dividend under both Fixed Pricing Option and Variable Pricing Option. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The initial issue period of the scheme was from February 15, 2006 to March 14, 2006 and the scheme was reopen for continuous purchase and redemption at prevailing NAV from April 6, 2006.



Name of the Shareholder Type of Holdings Holding Sahara India Financial Corporation Limited Equity 48.64 % Sahara India Corp Investment Limited Equity 17.53 % Sahara Prime City Limited (formerly Sahara India Investment Corporation Limited ) Equity 17.53 %







2.2.1 Investments are accounted on trade dates at cost including brokerage, stamp duty and other charges.


2.2.3 Bonus/Rights entitlements on equity holdings are recognized only when the original shares on which the entitlement accrues are traded on the principal stock exchange on ex-bonus/ex-rights basis respectively.





2. 2.The Valuation of Right shares until they are traded, is done as per the method given below:

Vr = n x (Pex – Pof) m

Where Vr = Value of rights n = no. of rights offered m = no. of original shares held Pex = Ex-rights price Pof = Rights Offer Price Where the rights are not treated pari-passu with the existing shares, suitable adjustment should be made to the value of rights. Where it is decided not to subscribe for the rights but to renounce them and renunciations are being traded, the rights can be valued at the renunciation value.




a. Money Market Instruments are valued at cost plus accrued interest. b. Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto

the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.



2.3.4 Unrealised Appreciation/Depreciation




2.4.1 Income and Expenses are recognized on accrual basis. 2.4.2 Interest on funds invested in short term deposits with scheduled commercial banks is recognized on accrual basis. 2.4.3 Dividend income earned by the scheme is recognized on the date the share is quoted on ex-dividend basis

on principal stock exchange. 2.4.4 Proportionate realized gains on investments out of sales / repurchase proceeds at the time of sale /

repurchase of units are transferred to revenue Account from Unit Premium Reserve. 3. Net Asset Value for Growth/Dividend options

The net asset value of the units is determined separately for units issued under the Fixed Pricing Option & Variable Pricing Option each having sub options Growth and Dividend. For reporting the net asset value of various options, daily income earned, including realized and unrealized gain or loss in the value of investments and expenses incurred by the scheme are allocated to the options in proportion to the value of the net assets.

4. Deferred Revenue Expenditure

Initial Issue expenses comprise those costs directly associated with the issue of units of the scheme and include brokerage / agents commission, advertising and marketing costs, registrar expenses and printing and dispatch costs. In accordance with the offer document of the scheme, such costs have been charged to the extent of 6% of amount collected in initial offer and are being amortized over a period of 5 years from the date of allotment.


Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options / Scheme, after an appropriate of the issue proceeds and redemption payout is credited or debited respectively to the income equalisation account.

The Unit Premium Reserve Account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.




In line with SEBI circular no. MFD/CIR/9/120/2000 dated November 24,2000, the unclaimed redemption and dividend amounts may be deployed by the mutual funds in call money market or money market instruments only and the investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount can be transferred to a pool account and the investors can claim the unclaimed redemption amount at NAV prevailing at the end of the third year. The income earned on such funds can be used for the purpose of investor education. The AMC should make continuous effort to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points.



Management Fees The total Management Fee (inclusive of service tax) has been computed at 0.69 % on average net assets calculated on a daily basis. Under the Variable Pricing Option, the AMC fee earned depends on the scheme's daily performance and the same has been computed on average net assets calculated on a daily basis. The IMA fees are charged accordingly, on the basis of whether at least one of the two conditions is met.

(a) If NPR < Benchmark and NPR < 0 IMA fees = zero (b) if either NPR > Benchmark or NPR > 0 Actual IMA fees = ½ of maximum permissible

IMA fees ( c) if both NPR > Benchmark and NPR > 0 Actual IMA fees = maximum permissible IMA

fees

• Net Portfolio Return (NPR) = Gross Portfolio Return(GPR) - Scheme expense

• IMA = Investment Management and Advisory fees

• GPR = Total Income during the day (Incl Net Appreciation / Depreciation) / Opening Net Assets*100

• Benchmark Return = ((Benchmark Value of today – Benchmark Value of yesterday) / Benchmark Value of yesterday)*(100*(365/1.25))



Custodian Charges

HDFC Bank Ltd provides Custodial services for which fees is paid as per the agreement.


Income Tax Act, 1961.

8.3 During the current year , a new software was installed for NAV Accounting that has enabled the transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account, based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the Management on an estimate basis . However, this has no impact on the Net Asset Value of the Scheme.


2009, the aggregate market value of securities under Sahara Infrastructure Fund but held in the name of Sahara Mutual Fund is Rs.13,639,120.04.

8.5 Transactions with Brokers in excess of 5% or more of the aggregate purchases and sale of securities made by the

Fund have\s been reported to the Trustees on a bimonthly basis

8.6 Transactions with Associates Brokerage / Commission on sale of units by the Scheme or by the Asset Management Company given to associates, pursuant to Regulation 25(8): Brokerage to SIFCL A/c CMSD (associate) has been made for sale of units of the MF as given below:


Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




Sr 1 1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt Fund Growth Fund Income Fund Liquid Fund Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19


Fund Infrastructure

Fund R. E. A. L

Fund FMP - 3 months

FMP- 3 months Series 2


3.04 2.98 25.28 0.03 0.10 0.07

8.7 The Aggregate value of purchases and sales of Investments during the year as a percentage of daily average net asset value;

Purchases

Year Amount ( Rs) % of Daily average 2008-09 168,744,231 174.36 2007-08 342,690,175 236.20

Sales


8.8 Load Charges

Load charges are collected and reimbursed to the Asset Management Company for selling and distribution expenses incurred by it on behalf of the schemes.


Asset Class 31-Mar-09 31-Mar-08





Equity Shares 13.63 150.69 37.12 189.89



(59.69 %) 43.50%

Total Expenditure (excluding Deferred Revenue Expenditure) to average net assets calculated on a daily basis

1.82 % 1.82%


8.11.1 Fixed Pricing Option - Growth Option


As on March 31,



2008 As on March

31, 2008 Initial Capital 3,908,842.083 39,088,421 3,908,842.083 39,088,421Opening Balance 1,745,464.825 17,454,648 2,523,871.008 25,238,710Units Sold during the year 348,051.910 3,480,519 752,320.259 7,523,202Units Repurchased during the year (185,698.854) (1,856,989) (1,530,726.442) (15,307,264)Closing Balance 1,907,817.881 19,078,178 1,745,464.825 17,454,648

8.11.2 Fixed Pricing Option - Dividend Option


As on March 31,



2008 As on March

31, 2008 Initial Capital 3,999,162.348 39,991,623 3,999,162.348 39,991,623 Opening Balance 2,465,187.685 24,651,877 2,477,325.783 24,773,258Units Sold during the year 163,496.752 1,634,968 4,934,996.504 49,349,965Units Repurchased during the year (286,862.688) (2,868,627) (4,947,134.602) (49,471,346)Closing Balance 2,341,821.749 23,418,218 2,465,187.685 24,651,877

8.11.3 Variable Pricing Option – Growth Option


As on March 31,




2008 Initial Capital 15,622,781.058 156,227,811 15,622,781.058 156,227,811Opening Balance 2,899,380.330 28,993,803 5,139,814.648 51,398,146Units Sold during the year 214,390.562 2,143,906 455,876.789 4,558,768Units Repurchased during the year (167,071.636) (1670,716) (2,696,311.107) (26,963,111)Closing Balance 2,946,699.256 29,466,993 2,899,380.330 28,993,803

8.11.4 Variable Pricing Option – Dividend Option


As on March 31,




2008 Initial Capital 7,613,483.957 76,134,840 7,613,483.957 76,134,840Opening Balance 3,143,683.588 31,436,836 3,944,985.745 39,449,857

Units Sold during the year 128,466.474 1,284,665 1,573,658.141 15,736,581Units Repurchased during the year (200,651.563) (2,006,516) (2,374,960.298) (23,749,602)Closing Balance 3,071,498.499 30,714,985 3,143,683.588 31,436,836

8.12 The scheme has declared nil dividend during the year ended March 31, 2009 (PY: 5.00 per unit).There was no bonus

declared during the year ended March 31, 2009 (PY: Nil)

8.13 Unclaimed Amounts ( Beyond six months):

Unclaimed Dividend & Redemption amounts as of March 31, 2009 are as below: Scheme

Name No of

Investors Unclaimed

Dividend (Rs) No. of

Investors Unclaimed

Redemption (Rs) Sahara Infrastructure Fund 35 239,530.67 25 124,475.22



8.15 Portfolio Statement as on March 31, 2009:


% to Mkt. Value of Investments

1) Equity and Equity Related


Industrial Capital Goods 17.87

BGR Energy Systems Limited 14000 19.96

Bharat Heavy Electricals Ltd 1200 18.13

Larsen and Toubro Limited 2600 17.46

Thermax Ltd 8500 15.36

Siemens Ltd 5500 14.75

Asea Brown Boveri Ltd 3000 12.80

Crompton Greaves Ltd 10000 12.35

Power 17.41

National Thermal Power Corp Ltd 12000 21.58

Praj Industries Ltd. 30000 17.54

Lanco Infratech Ltd 12000 17.44

Reliance Infrastructure Ltd 3000 15.47

Tata Power Company Ltd 1700 13.07

Jyoti Structures Ltd 22250 12.17

Power Trading Corporation of India Ltd 15263 10.68

Construction 12.41

Jai Prakash Associates Ltd. 26000 21.87

GMR Infrastructure Ltd 18000 17.07

GVK Power & Infrastructure Ltd 69977 16.37

Hindustan Construction Company Ltd 35000 13.69

Madhucon Projects Ltd 13850 7.92

Petroleum Products 10.60

Reliance Petroleum Ltd 18000 17.12



Indian Oil Corporation Ltd 4000 15.51

Gas 9.34

Gas Authority of India Ltd 11000 27.02

Petronet LNG Limited 40000 15.54

Gujarat State Petronet Ltd 40000 15.34

Ferrous Metals 5.57

Jindal Steel & Power Ltd. 1500 18.08

Tata Iron & Steel Company Ltd 8000 16.47

Finance 4.62

LIC Housing Finance Ltd 6500 14.59

Infrastructure Development Finance Co.Ltd 26000 14.07

Banks 3.96

State Bank of India 1600 17.07

Axis Bank Ltd 1800 7.47

Cement 3.72

India Cements Ltd 11000 11.66

Madras Cements Ltd 16000 11.43


Voltas Ltd 45000 20.77

Consumer Non- Durables 3.34


Non-Ferrous Metals 2.88

Sterlite Industries Ltd 5000 17.88

Transportation 1.73


Auto 1.70


Oil 1.48

Cairn India Ltd 5000 9.21

Equity Total 580840 619.92 100.00

2) Debt Instruments




4) Others - Short Term Deposits Nil Nil Nil

5) Current and Other Assets (22.09%) Nil 175.81 100.00


8.16 Investments made by the Scheme in shares of Group Companies of the Sponsor – NIL. 8.17 Holdings over 25% of the NAV of the scheme.


Number of Investors NIL NIL


8.18 Contingent Liability : Nil 8.19 Previous year figures have been reclassified/regrouped, wherever necessary, to conform to

the current year’s classification. As per our attached report of even date



1.We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Wealth Plus Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.






(SN Chaturvedi)


SAHARA WEALTH PLUS FUND

BALANCE SHEET AS AT MARCH 31, 2009 Schedule As at As at March 31, 2009 March 31, 2008 ASSETS (Rs) (Rs)

Investments 1

40,677,689

116,982,255 Deposits 2 - -


18,607,268

19,654,266


9,620,324

16,412,237

Total Assets

68,905,281

153,048,758 LIABILITIES

Unit Capital 5

55,691,087

90,681,704


4,859,650

61,048,145


8,354,544

1,318,909

Total Liabilities

68,905,281

153,048,758 NET ASSET VALUE Net Asset Value per unit (Rs.) i) Fixed Pricing - Dividend 10.6619 16.4849 ii) Fixed Pricing - Growth 10.6619 16.4849 iii) Variable Pricing - Dividend 10.9198 16.7649 iv) Variable Pricing - Growth 10.9198 16.7649 Significant Accounting Policies and Notes to the accounts 10 Schedules 1 to 7 and 10 form an integral part of the Balance Sheet As per our attached report of even date


SAHARA WEALTH PLUS FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule As at March 31, 2009

As at March 31, 2008

(Rs) (Rs) INCOME

Dividend Income 1,182,732

940,615

Interest Income 8 1,205,838

336,484


(34,223,792)

48,041,257

(Other than Inter Scheme Transfer / Sale)

Total Income

(31,835,221)

49,318,356 EXPENSES & LOSSES Derivative MTM Loss - 37,636

Management Fees

478,375

693,876


109,791

71,491

Audit Fees

87,889

78,583


6,791,913

6,810,521

Custodian Fees

142,292

71,490


308,598

452,248

Insurance

51,766

58,864


239,149

789,818


161,886

134,250

Total Expenses

8,371,658

9,198,776


(40,206,878)

40,119,580 Provision / Write back for dimunition in value of investments 9

3,727,809

(11,409,727)


(75,652,148) -


(112,131,218)


For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET

As at March 31,

As at March 31,

2009 2008

(Rs) (Rs) SCHEDULE 1 Investments (Refer Note 8.15 of Schedule 10 for detailed Portfolio statement)

Equity Shares

40,677,689

116,982,255


-

-

40,677,689

116,982,255

SCHEDULE 2 Deposits

With Scheduled Banks -

-

-

-



4,572,718

1,654,912

Contracts for sale of investments

466,244

9,106,363


13,382,242

8,360,084


4,058

18,750


182,006

514,157

Application Money Pending Allotment

- -

Recoverable from AMC

- -

18,607,268

19,654,266

SCHEDULE 4 Deferred Revenue Expenditure Incurred during the period 16,412,237 23,222,757 Less:- Amortised during the period 6,791,913 6,810,521

At the end of the period 9,620,324 16,412,237

SCHEDULES FORMING PART OF THE BALANCE SHEET

As at March 31,

2009

As at March 31,

2008 (Rs) (Rs) SCHEDULE 5 Unit Capital

Fixed Plan Dividend

6,268,053

6,586,112 Fixed Pricing - Dividend Option 626805.2900 units of Rs.10 each (For 2007-08 658611.2090 units of Rs.10 each

Fixed Plan Growth

3,923,893

4,014,275 Fixed Pricing - Growth Option 392389.2810 units of Rs.10 each (For 2007-08 401427.5490 units of Rs.10 each)

Variable Plan Dividend

21,270,572

43,612,156 Variable Pricing - Dividend Option 2127057.2330 units of Rs.10 each (For 2007-08 4361215.5790 units of Rs.10 each)

Variable Plan Growth

24,228,569

36,469,162 Variable Pricing - Growth Option 2422856.9160 units of Rs.10 each (For 2007-08 3646916.1830 units of Rs.10 each)

Total

55,691,087

90,681,704

(Refer Note 8.11 of Schedule 10) SCHEDULE 6 Reserves and Surplus Revenue Reserve


196,332,623

167,622,770


(112,131,218)

28,709,853


84,201,406



(75,652,148) -


75,652,148 -


-



8,794,056

13,395,427


(7,082,734)

(4,601,371)


1,711,322



(144,078,534)

(140,849,023)


63,025,457

(3,229,511)


(81,053,077)

(144,078,534)

4,859,650

61,048,145

SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at

March 31,

2009 March 31,

2008 SCHEDULE 7 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

51,986 544,276


5,132 50,446

Contract for purchase of Investments

7,897,658 -


399,619

714,328


149 9,859 (Refer note 8.8 of Schedule 10)

8,354,544

1,318,909

SCHEDULE 8 Interest & Discount Income


-

243

Fixed Deposit

-

113,346

Commercial Paper/Certificate of Deposit 206,998

-

Treasury Bills 10,909

-

Reverse Repo 987,931

222,895

1,205,838

336,484

SCHEDULE 9 Provision / Write back for dimunition in value of Investments


(12,950,783)

(1,541,056)


(9,222,973)

(12,950,783)

3,727,809

(11,409,727)

SAHARA WEALTH PLUS



(Rs. Per

Unit) (Rs. Per Unit)

(Rs. Per Unit)

(a) Gross Income

(i) Income other than Profit on sale of Investments 0.43 0.14

0.46 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments

(iii) Income from Profit (net of Loss) on sale other -6.15 5.30

9.12 than Inter scheme

(iv) Transfer to revenue account from past year's 0.00 0.00

- reserve NA NA NA

(b) Aggregate of expenses, write off, amortisation and charges 1.50 1.00

1.06

(c) Net Income -7.22 4.44

8.51 (d) Net unrealised appreciation/(dimunition) in value of Investments -1.35 -0.46

1.16

(e) Net Asset Value Fixed Pricing - Dividend Plan 10.6619 16.4849 13.82260 Fixed Pricing - Growth Plan 10.6619 16.4849 13.82260 Variable Pricing - Dividend Plan 10.9198 16.7649 13.95450 Variable Pricing - Growth Plan 10.9198 16.7649 13.95450 (f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 17.3646 21.7389 15.0511 Fixed Pricing - Growth Plan 17.3646 22.2847 15.0511 Variable Pricing - Dividend Plan 17.6709 22.6218 15.1796 Variable Pricing - Growth Plan 17.6709 22.6218 15.1796 (ii) Lowest Fixed Pricing - Dividend Plan 9.9416 13.4502 10.3004 Fixed Pricing - Growth Plan 9.9416 13.3448 10.3004 Variable Pricing - Dividend Plan 10.178 13.4725 10.3479 Variable Pricing - Growth Plan 10.1780 13.5792 10.3479 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 17.9346 22.1269 15.3897 Fixed Pricing - Growth Plan 17.9346 22.6699 15.339 Variable Pricing - Dividend Plan 18.2510 22.708 15.4486 Variable Pricing - Growth Plan 18.251 22.4671 15.4595 (ii) Lowest Fixed Pricing - Dividend Plan 10.2679 13.9193 10.7191

Fixed Pricing - Growth Plan 10.2679 13.8657 10.8763 Variable Pricing - Dividend Plan 10.5121 14.0532 10.9266 Variable Pricing - Growth Plan 10.5121 13.7756 10.7767 (h) Ratio of expenses to average daily net assets by Percentage 1.56% 1.56% 0.017140716 (i) Ratio of income to average daily net assets by Percentage -33.60% 29.57% 0.44609581 (excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annaulised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period

SCHEDULE - 10 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE PERIOD ENDED MARCH 31, 2009.

1. INTRODUCTION


Sahara Wealth Plus Fund (the “Scheme”) is an open ended growth scheme of Sahara Mutual Fund (the “Fund”). The objective is to invest in equity and equity related instruments of companies that would be wealth builders in the long run. The Scheme has two options – Fixed Pricing Option and Variable Pricing Option and sub options namely (1) Growth and (ii) Dividend under both Fixed Pricing Option and Variable Pricing Option. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The initial issue period of the scheme was from July 4, 2005 to August 9, 2005 and the scheme was reopen for continuous purchase and redemption at prevailing NAV from September 6, 2005.


Sahara Mutual Fund (SMF) has been established as a Trust in accordance with the Indian Trusts Act, 1882, and is sponsored by Sahara India Financial Corporation Limited (“SIFCL”). Sahara Asset Management Company Private Limited (“SAMCPL”), a company incorporated under the Companies Act, 1956, has been appointed as the Asset Management Company (“Investment Manager”) to Sahara Mutual Fund. The shareholding of Sahara Asset Management Company Private Limited as on March 31, 2009 is as follows:


Equity 17.53 %







2.2.1 Investments are accounted on trade dates at cost including brokerage, stamp duty and other charges.


2.2.3 Bonus/Rights entitlements on equity holdings are recognized only when the original shares on which the entitlement accrues are traded on the principal stock exchange on ex-bonus/ex-rights basis respectively.





2. The Valuation of Right shares until they are traded, is done as per the method given below:





a. Money Market Instruments are valued at cost plus accrued interest. b. Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.



2.3.4 Unrealized Appreciation/Depreciation


The provision for depreciation in value of investments determined separately for each individual investment is recognized in the revenue account. The loss on investments sold / transferred during the year is charged to revenue account, instead of being first adjusted against the provision for depreciation, if already created in the

prior year, as recommended by the said Guidance Note. However, this departure from the Guidance Note does not have any impact on the Scheme’s net assets or results for the year.

Revenue Recognition





3. Net Asset Value for Growth/Dividend options

The net asset value of the units is determined separately for units issued under the Fixed Pricing Option & Variable Pricing Option each having sub options Growth and Dividend. For reporting the net asset value of various options, daily income earned, including realized and unrealized gain or loss in the value of investments and expenses incurred by the scheme are allocated to the options in proportion to the value of the net assets.


Initial Issue expenses comprise those costs directly associated with the issue of units of the scheme and include brokerage / agents’ commission, advertising and marketing costs, registrar expenses and printing and dispatch costs. In accordance with the offer document of the scheme, such costs have been charged to the extent of 6% of amount collected in initial offer and are being amortized over a period of 5 years from the date of allotment.


Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options / Scheme, after an appropriate of the issue proceeds and redemption payout is credited or debited respectively to the income equalization account.

The Unit Premium Reserve Account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.







Management Fees The total Management Fee (inclusive of service tax) has been computed at 0.47 % on average net assets calculated on a daily basis.

Under the Variable Pricing Option, the AMC fee earned depends on the scheme's daily performance and the same has been computed on average net assets calculated on a daily basis. The IMA fees are charged accordingly, on the basis of whether at least one of the two conditions is met.

(a) If NPR < Benchmark and NPR < 0 IMA fees = zero (b) if either NPR > Benchmark or NPR > 0 Actual IMA fees = ½ of maximum permissible

IMA fees ( c) if both NPR > Benchmark and NPR > 0

Actual IMA fees = maximum permissible IMA fees

• Net Portfolio Return (NPR) = Gross Portfolio Return(GPR) - Scheme expense • IMA = Investment Management and Advisory fees • GPR = Total Income during the day (Incl Net Appreciation / Depreciation) / Opening Net Assets*100 • Benchmark Return = ((Benchmark Value of today – Benchmark Value of yesterday) / Benchmark Value of

yesterday)*(100*(365/1.25))



Custodian Charges

HDFC Bank Ltd provides Custodial services for which fees are paid as per the agreement.


Income Tax Act, 1961. 8.3 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March 31,

2009 the aggregate market value of securities under Sahara Wealth Plus Fund but held in the name of Sahara Mutual Fund is Rs.13,383,800.25.

8.4 During the current year , a new software was installed for NAV Accounting that has enabled the transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account, based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the Management on an estimate basis. However, this has no impact on the Net Asset Value of the Scheme.


Fund have\s been reported to the Trustees on a bimonthly basis.

8.6 Transactions with Associates Brokerage / Commission on sale of units by the Scheme or by the Asset Management Company given to associates, pursuant to Regulation 25(8):


Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund



Interval Fund – Quarterly Plan Sr 1

1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt Fund Growth Fund Income Fund Liquid Fund Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19

(Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07

8.7 Aggregate value of purchases and sales of Investments during the year as a percentage of daily average net asset value; Purchases


Sales


8.8 Load Charges

Load charges are collected and reimbursed to the Asset Management Company for Selling and Distribution expenses incurred by it on behalf of the scheme.







Equity Shares 17.11 92.23 87.94 129.51



(33.60%) 29.57

Total Expenditure (excluding Deferred Revenue Expenditure) to average net assets calculated on a daily basis

1.56 1.54%


8.11.1 Fixed Pricing Option - Growth Option


As on March 31,

2009 As on March

31, 2009 As on March 31,


2008 Initial Capital 1,581,244.089 15,812,441 1,581,244.089 15,812,441Opening Balance 401,427.549 4,014,275 660,027.285 6,600,273Units Sold during the year 11,011.528 110,115 27,670.712 276,707Units Repurchased during the year (20,049.796) (200,498) (286,270.448) (2,862,705)Closing Balance 392,389.281 3,923,892 401,427.549 4,014,275

8.11.2 Fixed Pricing Option - Dividend Option


As on March 31,

2009 As on March

31, 2009 As on March 31,


2008 Initial Capital 2,611,581.056 261,15,810 2,611,581.056 261,15,810Opening Balance 658,611.209 6,586,112 869,666.109 8,696,661Units Sold during the year 2,084.555 20,846 54,117.238 541,172Units Repurchased during the year (33,890.474) (338,905) (265,172.138) (2,651,721)

Closing Balance 626,805.290 6,268,053 658,611.209 6,586,112

8.11.3 Variable Pricing Option – Growth Option Number of Units Amount (Rs) Number of Units Amount (Rs)

As on March 31,

2009 As on March

31, 2009 As on March 31,


2008 Initial Capital 21,486,302.533 214,863,025 21,486,302.533 214,863,025Opening Balance 3,646,916.183 36,469,162 2,824,248.725 28,242,487Units Sold during the year 9,798.800 97,988 1,750,771.871 17,507,719Units Repurchased during the year (1,233,858.067) (12,338,581) (928,104.413) (9,281,044)Closing Balance 2,422,856.916 24,228,569 3,646,916.183 36,469,162

8.11.4 Variable Pricing Option – Dividend Option


As on March 31,

2009 As on March

31, 2009 As on March 31,


2008 Initial Capital 40,007,989.345 400,079,893 40,007,989.345 400,079,893Opening Balance 4,361,215.579 43,612,156 5,854,846.948 58,548,469Units Sold during the year 4,737.482 47,375 40,095.949 400,959Units Repurchased during the year (2,238,895.828) (22,388,958) (1,533,727.318) (15,337,273)Closing Balance 2,127,057.233 21,270,573 4,361,215.579 43,612,156

8.12 The Scheme has not declared Dividend (PY: Nil) and Bonus (PY: Nil) during the year ended March 31, 2009.


Unclaimed Dividend and Redemption amounts as of March 31, 2009 are given below:

Scheme Name No of Investors

Unclaimed Dividend (Rs)

No of Investors


Sahara Wealth Plus Fund - - 58 447,543.01 8.14 Investments made by the Schemes of Sahara Mutual Fund in Companies or their subsidiaries that have invested




% to Mkt. Value of

Investments 1) Equity and Equity Related EQUITY SHARES (67.18%)

Consumer Non Durables 33.87 Marico Limited 39950 24.09 Colgate-Palmolive (India) Ltd. 5000 23.56 Hindustan Unilever Ltd 9000 21.38 Nestle India Limited 1250 19.46 ITC Limited 10000 18.49 Blue Star Ltd 7034 10.93 Jyothy Laboratories Ltd 17500 10.03 Titan Industries Ltd 1260 9.85 Industrial Capital Goods 10.06 Bharat Heavy Electricals Ltd 1100 16.62 Exide Industries Ltd 25000 10.34 Thermax Ltd 4319 7.80 Crompton Greaves Ltd 5000 6.18 Auto 9.48

Bajaj Auto Ltd 4000 24.74 Mahindra & Mahindra Ltd 3600 13.81 Banks 7.46 Union Bank of India 10000 14.69 Bank of Baroda 3500 8.20 State Bank of India 700 7.47 Pharmaceuticals 5.10 Dishman Pharmaceuticals Ltd 10807 10.75 Sun Pharmaceuticals Industries Ltd 900 10.00 Petroleum Products 3.97 Indian Oil Corporation Limited 2200 8.53 Reliance Industries Ltd 500 7.62 Finance 3.86 LIC Housing Finance Ltd 7000 15.71 Pesticides 3.62 United Phosphorous Ltd. 15000 14.74 Construction 3.31 Jai Prakash Associates Ltd. 16000 13.46 Ferrous Metals 3.14 Tata Iron & Steel Company Ltd 6200 12.77 Oil 3.07 Oil & Natural Gas Corp Ltd 1600 12.48 Chemicals 3.07 Bayer Cropscience Ltd 5000 12.47 Consumer Durables 3.06 Voltas Ltd 27000 12.46 Industrial Products 2.88 SKF India Ltd. 7825 11.71 Media 2.46 Sun TV Limited 6000 10.03 Transportation 1.58 Gateway Distriparks Ltd 12000 6.44

Equity Total 266245 406.78 100.00 2) Debt Instruments (a) Listed / awaiting listing on Stock Exchanges Nil Nil Nil (b) Privately Placed / Unlisted Nil Nil Nil 3) Money Market Instruments Nil Nil Nil 4) Short Term Deposits Nil Nil Nil 5) Current and Other Assets (32.82%) 198.73 100.00 Grand Total 266245 605.51

8.16 Investments made by the Scheme in shares of Group Companies of the Sponsor – Nil

8.17 Holdings over 25% of the NAV of the scheme.

Particulars As on March 31, 2009 As on March 31, 2008 Number of investors Nil Nil Percentage of Holdings N/A N/A

8.18 Contingent Liability : Nil

8.19 Previous year figures have been reclassified/regrouped, wherever necessary, to conform to the current year’s classification.



1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Real Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the period ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme.



i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the deficit for the period ended on that date.





Place: Mumbai M No.040479 Date: 22/06/2009

SAHARA REAL FUND


Investments 1

44,566,411

98,807,156 Deposits 2 - -


20,289,075

2,691,530


4,629,129

7,361,835

Total Assets

69,484,615


Unit Capital 5

136,058,071

138,635,558 Reserves & Surplus 6

(73,785,867) (30,548,971)


7,212,411

773,934

Total Liabilities

69,484,615

108,860,521 NET ASSET VALUE Net Asset Value per unit (Rs.) i) Dividend 4.6003 7.7965 ii) Growth 4.6003 7.7965 Significant Accounting Policies and Notes to the accounts 10 Schedules 1 to 7 and 10 form an integral part of the Balance Sheet As per our attached report of even date


SAHARA REAL FUND

REVENUE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2009

Schedule As at March

31, 2009

For the period November 27, 2007 to March 31, 2008

(Rs) (Rs) INCOME

Dividend Income

1,034,048

47,210

Interest Income 8

756,365

430,501


(61,395,228)


Total Income

(59,604,815) 5,374,838 EXPENSES & LOSSES

Management Fees

943,018

560,603


95,456

31,756

Audit Fees

76,414

34,906


3,051,626

972,673

Custodian Fees

135,453

10,734


242,139

46,592

Insurance

45,008

26,147


207,925

350,887


140,750

59,633

Total Expenses

4,937,788

2,093,931


(64,542,603)

3,280,907 Provision /write back for dimunition in value of investments 9

18,770,556

(33,461,456)


587,388 -


(45,184,659)

(30,180,549) Significant Accounting Policies and Notes to the accounts 10 Schedules 8 to 10 form an integral part of the Revenue Account As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 1 Investments

(Refer Note 8.14 of Schedule 10 for detailed Portfolio statement)

Equity Shares

44,566,411

98,807,156


-

-

44,566,411


Fixed Deposits with Banks

-

-

-



3,177,395

331,303


17,109,687

1,984,650

Contracts For Sale of Investments

-

375,577


1,993

-


-

-

20,289,075

2,691,530 SCHEDULE 4 Deferred Revenue Expenditure

Incurred during the period 7,361,835

8,334,508

Less:- Amortised during the period 2,732,706

972,673

At the end of the period 4,629,129 7,361,835 SCHEDULE 5 Unit Capital

Dividend

34,543,757

35,283,870 Dividend Option 3454375.687units of Rs.10 each (For 2007-08 3528387.0490 units of Rs.10 each Growth

101,514,315 103,351,687

Growth Option 10151431.454 units of Rs.10 each (For 2007-08 10335168.7020 units of Rs.10 each

Total

136,058,071

138,635,558 (Refer Note 8.10 of Schedule 10) SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 SCHEDULE 6 (Rs) (Rs) Reserves and Surplus Revenue Reserve


(30,180,549) -


(45,184,659)

(30,180,549)


(75,365,208)

(30,180,549) Income Equalisation Reserve Balance as at beginning of the year - -


587,388 -


(587,388) -


-



722,795 -


1,681,748

722,795


2,404,543

722,795 Unit Premium Reserve


(1,091,216) -


266,014

(1,091,216)


(825,202)

(1,091,216)

(73,785,867)

(30,548,971) As at As at SCHEDULE 7 March 31, 2009 March 31, 2008 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

185,682 282,770


9,624 110,152

Payable to AMC

- 75,090 Contract for purchase of Investments

6,945,886 -


70,881

-


338 305,922 (Refer note 8.7 of Schedule 10)

7,212,411

773,934 SCHEDULES FORMING PART OF REVENUE ACCOUNT

For the year

ended For the year

ended March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 8 Interest & Discount Income


-

-

Fixed Deposit

10,265

-

Commercial Paper/Certificate of Deposit

-

-

Treasury Bills

-

-

Reverse Repo

746,100

430,501

756,365

430,500 SCHEDULE 9 Provision / Write back for dimunition in value of Investments


(33,461,456)

-


(14,690,900)

(33,461,456)

18,770,556

(33,461,456)

SAHARA REAL FUND


Particulars As at As at 31-Mar-09 31-Mar-08

(Rs. Per Unit) (Rs. Per Unit) (a) Gross Income (i) Income other than Profit on sale of Investments 0.1316 0.0345 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments (iii) Income from Profit (net of Loss) on sale other -4.5124 0.3532 than Inter scheme (iv) Transfer to revenue account from past year's 0.0000 0.0000 reserve

(b) Aggregate of expenses, write off, amortisation and charges 0.3629 0.1510 (c) Net Income -4.7438 0.2367 (d) Net unrealised appreciation/(dimunition) in value of Investments -0.9030 -2.3615 (e) Net Asset Value Dividend Plan 4.6003 7.7965 Growth Plan 4.6003 7.7965 (f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 8.1836 12.0385 Fixed Pricing - Growth Plan 8.1836 11.4133 (ii) Lowest Fixed Pricing - Dividend Plan 4.1013 8.6372 Fixed Pricing - Growth Plan 4.1013 8.0626 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 8.5246 10.0000 Fixed Pricing - Growth Plan 8.5246 12.0385 (ii) Lowest Fixed Pricing - Dividend Plan 4.2722 9.7475 Fixed Pricing - Growth Plan 4.2722 9.957 (h) Ratio of expenses to average daily net assets by Percentage 2.32% 1.51% (i) Ratio of income to average daily net assets by Percentage -88.39% 3.87%

(excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annaulised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period


1. INTRODUCTION 1.1 About the Scheme

SAHARA ‘R.E.A.L. FUND’ (Retailing, Entertainment & Media, Auto & auto ancillaries and Logistics Sector) (the “Scheme”) is a 36 month closed ended growth scheme of Sahara Mutual Fund (the “Fund”) to be converted into an open ended scheme upon three years from date of allotment. The investment objective would be to provide long term capital gains by investing predominantly in equity / equity related instrument of companies in the Retailing, Entertainment & Media, Auto & auto ancillaries and Logistics sector. The Scheme has two options - Growth and Dividend. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The New Fund Offer period of the scheme was from 05/10/2007 to 02/11/2007.




Equity 17.53 %













1 Traded equity securities and warrants are valued at the last quoted price on the National Stock Exchange of India Limited (NSE). However, if the securities and warrants are not listed on NSE, the securities are valued at the price quoted at the exchange where it is principally traded. When on a particular valuation day, a security has not been traded on NSE but has been traded on another stock exchange, the value at which it is traded on that stock exchange is used provided it is not more than thirty days prior to the valuation date.


Vr = n x (Pex – Pof)

m Where Vr = Value of rights n = no. of rights offered m = no. of original shares held Pex = Ex-rights price Pof = Rights Offer Price Where the rights are not treated pari-passu with the existing shares, suitable adjustment should be made to the value of rights. Where it is decided not to subscribe for the rights but to renounce them and renunciations are being traded, the rights can be valued at the renunciation value.








2.3.4 Unrealised Appreciation / Depreciation.








3. Net Asset Value for Growth/Dividend Options:



New Fund Offer expenses comprise those costs directly associated with the issue of units of the scheme and include brokerage / agent’s commission, advertising and marketing costs, registrar expenses and printing and dispatch costs. In accordance with the offer document of the scheme, such costs have been charged to the extent of 6.00 % of amount collected during the new fund offer and are being amortized over a period of 36 months of the plan from the date of allotment.


Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options / Scheme, after an appropriate of the issue proceeds and redemption payout is credited or debited respectively to the income equalization account.

The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.







Management Fees Management Fees ( inclusive of service tax) has been computed at 1.16 % on average net assets calculated on a daily basis.


In accordance with Deed of Trust dated 18th July 1996 between the Settler and the Trustees, the fund has paid or provided an annual fee of Rs.1,00,000/- per Trustee. Trusteeship fees & expenses are allocated to the schemes on the basis of their daily average net assets.

Custodian Charges


8.2 Provision for tax has not been made since the income of the scheme is exempt from tax under Section 10(23D) of

the Income Tax Act, 1961.


8.4 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March

31, 2009 the aggregate market value of securities under Sahara R. E .A .L Fund but held in the name of Sahara Mutual Fund is Rs. 17,111,679.29.



Brokerage to SIFCL A/c CMSD (Associate) has been made for sale of units of the MF as given below:


Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




Sr 1 1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07

8.6 The aggregate value of Investment purchased and sold(Including Redemption) during the year as a percentage of daily average net asset value;

Purchases


Sales


8.7 Load Charges








Equity Shares 24.05

146.91 7.23 334.61



(88.39) % (19.70) %


2.32 % 0.80 %

8.10 Movements in Unit Capital



As on




March 31, 2008 Initial Capital 10,898,668.702 108,986,687 10,898,668.702 108,986,687Opening Balance 10,335,168.702 103,351,687 - -Units Sold during the year 0.000 0.00 10,898,668.702 108,986,687Units Repurchased during the year (183,737.248) (1,837,372) (563,500.000) (5,635,000)Closing Balance 10,151,431.454 101,514,315 10,335,168.702 103,351,687


Number of Units Amount (Rs) Number of Units Amount (Rs) As on As on As on As on

March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008

Initial Capital 3,653,051.558 36,530,516 3,653,051.558 36,530,516Opening Balance 3,528,387.049 35,283,870Units Sold during the year 0.000 0 3,653,051.558 36,530,515Units Repurchased during the year (74,011.362) (740,114) (124,664.509) (1,246,645)Closing Balance 3,454,375.687 34,543,757 3,528,387.049 35,283,870

8.11 The scheme has declared nil dividend during the year (PY: Nil). There was no bonus declared during the year

ended March 31, 2009 (PY: Nil).


Unclaimed Dividend and Redemption amounts as on March 31, 2009 are as below: Scheme name No of


(Rs)

No. of Investors


(Rs) Sahara R. E. A. L .Fund. - - 1 10,378.70



8.14 Portfolio Statement as on March 31, 2009 Company's Name Qty Mkt Value

( Rs. Lakhs) % to Mkt. Value of

Investments


EQUITY SHARES (71.20 %)

Consumer Non Durables 18.74


ITC Limited 14500 26.80

Hindustan Unilever Ltd 8500 20.19

Titan Industries Ltd 454 3.55

Media & Entertainment 15.78

Sun TV Limited 16868 28.19

HT Media Industries 25000 14.64

UTV Software Communication Ltd 5000 9.96

Deccan Chronicle Holdings Ltd 15000 7.07

Entertainment Network (India) Ltd 5000 5.65

Prime Focus Ltd 5742 4.82

Auto 15.13


Mahindra & Mahindra Ltd 7000 26.86

Hero Honda Motors Ltd 500 5.36

Transportation 12.82

Container Corporation of India Ltd 3500 25.16


Transport Corporation of India Ltd 26722 8.93

Banks 11.40

Union Bank of India 16000 23.50

ICICI Bank Ltd 5000 16.64

State Bank of India 1000 10.67


Nestle India Limited 1800 28.02

Marico Limited. 32000 19.30

Petroleum 7.42



Finance 6.04

LIC Housing Finance Ltd 12000 26.93

Industrial Products 2.05

SKF India Ltd. 6094 9.12

Equity Total 273875 445.66 100.00

(b) Unlisted Nil Nil Nil

2) Debt Instruments Nil Nil Nil



(c ) Securitised Debt Nil Nil Nil


4) Short Term Deposits Nil Nil Nil

5) Others - Current Assets (28.80 %) Nil 180.25 100.00



8.16 Holdings over 25% of the NAV of the scheme as of March 31, 2009. Particulars As on March 31, 2009 As on March 31, 2008

Number of Investors Nil Nil


8 .17 Contingent Liability: Nil


For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager

Place: Mumbai Date: 22/06/2009


1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Power and Natural Resources Fund (the

“Scheme”) as at March 31, 2009, and the related Revenue Account for the period ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.






4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and give a true and fair view in conformity with the Accounting principles generally accepted in India i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the deficit for the period ended on that date.





Place: Mumbai M No.040479 Date : 22/06/2009

SAHARA POWER AND NATURAL RESOURCES FUND BALANCE SHEET AS AT MARCH 31, 2009

Schedule As at March 31, 2009 ASSETS (Rs)

Investments 1

36,923,250

Deposits 2

-


8,560,479


-

Total Assets


Unit Capital 5

66,295,195


(23,573,102)


2,761,636

Total Liabilities

45,483,729 NET ASSET VALUE Net Asset Value per unit (Rs.) i) Dividend 6.4445 ii) Growth 6.4441 Significant Accounting Policies and Notes to the accounts 10 Schedules 1 to 7 and 10 form an integral part of the Balance Sheet As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place : Mumbai Date: 22/06/2009

SAHARA POWER AND NATURAL RESOURCES FUND REVENUE ACCOUNT FOR THE PERIOD 17 th June, 2008 To March 31, 2009

Schedule

For the period 17 th June, 2008 to March

31, 2009 (Rs) INCOME

Dividend Income

641,932

Interest Income 8

915,094


(15,699,899) (Other than Inter Scheme Transfer / Sale)

Total Income

(14,142,873) EXPENSES & LOSSES Management Fees

488,529


43,686

Audit Fees

34,971


-

Custodian Fees

69,011


160,688

Insurance

20,598


95,159


64,415

Total Expenses

977,058


(15,119,932)

Provision for dimunition in value of investments 9

(8,383,077)


40,673


(23,462,336) Significant Accounting Policies and Notes to the accounts 10 Schedules 8 to 10 form an integral part of the Revenue Account As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place :Mumbai Date: 22/06/2009 SAHARA POWER AND NATURAL RESOURCES FUND SCHEDULES FORMING PART OF THE BALANCE SHEET

As at March 31,

2009 (Rs) SCHEDULE 1 Investments (Refer Note 7.14 of Schedule 10 for detailed Portfolio statement)

Equity Shares

36,923,250


-



-



2,712,713


5,710,933


133,168


3,665


-


Incurred during the period

-

Less:- Amortised during the period

-

At the end of the period

- SCHEDULE 5 Unit Capital

Dividend

20,945,593 Dividend Option 2094559.330 units of Rs.10 each

Growth

45,349,603 Growth Option 4534960.3060 units of Rs.10 each

Total

66,295,195

(Refer Note 7.10 of Schedule 10) SCHEDULES FORMING PART OF THE BALANCE SHEET SCHEDULE 6 Reserves and Surplus Revenue Reserve Balance as at beginning of the year -


(23,462,336)


(23,462,336) Income Equalisation Reserve Balance as at beginning of the year -


40,673


(40,673)


- Unrealised Appreciation Reserve Balance as at beginning of the year - Additions During the year -


- Unit Premium Reserve Balance as at beginning of the year -


(110,766)


(110,766)

(23,573,102) As at

SCHEDULE 7 March 31,

2009 (Rs) Current Liabilities and Provisions

Sundry Creditors

103,083


6,947


-


2,646,237


5,215


154 (Refer note 7.7 of Schedule 10)

2,761,636

SCHEDULES FORMING PART OF REVENUE ACCOUNT SCHEDULE 8 Interest & Discount Income


-

Fixed Deposit

-


-

Treasury Bills

-

Reverse Repo

915,094

915,094 SCHEDULE 9 Provision for dimunition in value of Investments


-


(8,383,077)

Provision for Depreciation

(8,383,077)

SAHARA POWER AND NATURAL RESOURCES FUND Perspective Historical Per unit statistics

Particulars As at

31-Mar-09

(Rs. Per

Unit) (a) Gross Income (i) Income other than Profit on sale of Investments 0.2349 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments (iii) Income from Profit (net of Loss) on sale other -2.3682 than Inter scheme (iv) Transfer to revenue account from past year's 0.0000 reserve (b) Aggregate of expenses, write off, amortisation and charges 0.1474 (c) Net Income -2.2807 (d) Net unrealised appreciation/(dimunition) in value of Investments -1.2645 (e) Net Asset Value Dividend Plan 6.4445 Growth Plan 6.4441

(f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 10.2713 Fixed Pricing - Growth Plan 10.2714 (ii) Lowest Fixed Pricing - Dividend Plan 5.6487 Fixed Pricing - Growth Plan 5.6485 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 10.5024 Fixed Pricing - Growth Plan 10.5025 (ii) Lowest Fixed Pricing - Dividend Plan 5.7758 Fixed Pricing - Growth Plan 5.7756 (h) Ratio of expenses to average daily net assets by Percentage 2.26% (i) Ratio of income to average daily net assets by Percentage -32.65% (excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annaulised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period


1. INTRODUCTION


SAHARA Power and Natural Resources Fund is an open ended growth scheme of Sahara Mutual Fund (the “Fund”). The investment objective is to generate long term capital appreciation through investment in equities and equity related securities of companies engaged in the business of generation, transmission, distribution of Power or in those companies that are engaged directly or indirectly in any activity associated in the power sector or principally engaged in discovery, development, production, processing or distribution of natural resources. The Scheme has two options - Growth and Dividend. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The New Fund Offer period of the scheme was from 28/04/2008 to 27/05/2008.



Name of the Shareholder Type of Holdings Holding Sahara India Financial Corporation Limited Equity 48.64 % Sahara India Corp Investment Limited Equity 17.53 %

Sahara Prime City Limited (formerly Sahara India Investment Corporation Limited )

Equity 17.53 %







2.2..1 Investments are accounted on trade dates at cost including brokerage, stamp duty and other charges which are included in the acquisition of investments.














c. Traded treasury bills, certificate of deposits and commercial paper are valued at the yield at which they are currently traded. Non-traded treasury bills, certificate of deposits and commercial paper including those not traded for a period of seven days are valued at cost plus accrued interest. d. Investments in mutual fund schemes are valued based on the net asset value of the respective schemes as on the valuation date.





2.4.1Income and Expenses are recognized on accrual basis.

2.4.2Interest on funds invested in short term deposits with scheduled commercial banks is recognized on accrual basis.

2.4.3Dividend income earned by the scheme is recognized on the date the share is quoted on ex-dividend basis on principal stock exchange.




4 Unit Premium Reserve Account

Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options /Scheme, after an appropriate of the issue proceeds and redemption payout is credited or debited respectively to the income equalization account. The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.

5. Income Equalisation Reserve







Trusteeship Fees & Expenses In accordance with Deed of Trust dated 18th July 1996 between the Settler and the Trustees, the fund has paid or provided an annual fee of Rs.1,00,000/- per Trustee. Trusteeship fees & expenses are allocated to the schemes on the basis of their daily average net assets.

Custodian Charges HDFC Bank provides Custodial services to the scheme for which fees is paid as per the agreement.



Fund have\s been reported to the Trustees on a Bimonthly basis.

7.4 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March 31, 2009 the aggregate market value of securities under Sahara Power and Natural Resources Fund but held in the name of Sahara Mutual Fund is Rs. 5711598.22.





Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66 (Rs.In lakhs)

R. E. A. L Fund

Classic Fund




Sr 1 1.90 0.01 0.85 3.10 0.01

7.6 The aggregate value of Investment purchased and sold(Including Redemption) during the year as a percentage of

daily average net asset value; Purchases

Year Amount (Rs) % of Daily average 2008-09 134,837,821/- 311.28

Sales


7.7 Load Charges



31-Mar-09 Asset Class



Equity Shares 4.50 88.33


2008-09


(32.65) %


2.26 %


7.10.1 Growth Option Number of Units Amount (Rs)

As on March 31,


2009 Initial Capital 4,493,635.091 44,936,351Opening Balance 0.000 0.00Units Sold during the year 4,682,868.132 46,828,681Units Repurchased during the year (147,907.826) (1,479,078)Closing Balance 4,534,960.306 45,349,603


Number of Units Amount (Rs)

As on March 31,


2009 Initial Capital 2,094,688.331 20,946,883Opening Balance 0.000 0.00Units Sold during the year 2,142,362.168 21,423,622Units Repurchased during the year (47,802.838) (478,028)Closing Balance 2,094,559.330 20,945,593

7.11 The scheme has declared nil dividend during the year (PY: N/A). There was no bonus declared during the year

ended March 31, 2009 (PY: N/A).




(Rs)

No. of Investors


(Rs) Sahara Power & Natural Resources Fund - - - -





% to Mkt. Value of Investments



Power 25.01 Power Grid Corporation Of India Ltd 20000 19.12 Power Trading Corporation India Ltd 20000 13.99 Lanco Infratech Ltd 7500 10.90 Tata Power Company Ltd 1400 10.76 Reliance Infrastructrue Ltd 2000 10.31 Jyoti Structures Ltd 18000 9.85 National Thermal Power Corp Ltd 5000 8.99 Gujarat Industries Power Ltd. 18000 8.42

Industrial Capital Goods 19.19 Bharat Heavy Electricals Ltd 1100 16.62 Larsen and Toubro Limited 2000 13.43 BGR Energy Systems Limited 8000 11.40 Asea Brown Boveri Ltd 2000 8.53 Siemens Ltd 3000 8.04 Crompton Greaves Ltd 6000 7.41 Thermax Ltd 3000 5.42 Petroleum Products 13.24 Reliance Petroleum Ltd 12000 11.41 Hindustan Petroleum Corp Ltd 4000 10.77 Indian Oil Corporation Limited 2500 9.70 Bharat Petroleum Corporation Ltd 2500 9.40 Reliance Industries Ltd 500 7.62 Fertilisers 10.60 Chambal Fertilisers & Chemicals Ltd 30000 12.56 Coromandel Fertilisers Ltd 10000 9.06 Gujarat Narmada Valley Fert Co. Ltd 15000 9.06 Deepak Fertilizers & Petro Corp.Ltd 15000 8.46 Gas 10.40 Gas Authority o India Ltd 7000 17.19 Gujarat State Petronet Ltd 30000 11.51 Petronet LNG Limited 25000 9.71 Consumer Non Durables 7.46 Triveni Engineering and Industries Ltd 25000 9.88 Balrampur Chini Mills Ltd 18000 9.50 Bajaj Hindustan Ltd 17000 8.15 Construction 5.63 Jai Prakash Associate Ltd. 17000 14.30 GVK Power & Infrastructure Ltd 27700 6.48 Ferrous Metals 4.00 Tata Iron & Steel Company Ltd 5000 10.30 Godawari Power & Ispat Ltd 8500 4.48 Oil 3.61 Oil & Natural Gas Corp Ltd 1000 7.80 Cairn India Ltd 3000 5.52 Hardware 0.86 Moser Baer India Ltd 6000 3.19 Equity Total 398700 369.23 100.00 (b) Unlisted Nil Nil Nil 2) Debt Instruments Nil Nil Nil (a) Listed / awaiting listing on Stock Exchanges Nil Nil Nil (b) Privately Placed / Unlisted Nil Nil Nil (c ) Securitised Debt Nil Nil Nil 3) Money Market Instruments Nil Nil Nil 4) Short Term Deposits Nil Nil Nil 5) Others - Current Assets (13.57) Nil 57.99 100.00 Grand Total 398700 427.22

7.15 Investments made by the Scheme in shares of Group Companies of the Sponsor – NIL. 7.16 Holdings over 25% of the NAV of the scheme as of March 31, 2009.

Particulars As on March 31, 2009 Number of Investors Nil

Percentage of Holdings N/A

7 .17 Contingent Liabilities: Nil

7.18 Previous year’s figures have not been given as the scheme was launched in the current year. As per our attached report of even date



1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Banking and Financial Services Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the period ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.



4.1 The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and give a true and fair view in conformity with the Accounting principles generally accepted in India i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the surplus for the period ended on that date.






SAHARA BANKING AND FINANCIALS SERVICES FUND

BALANCE SHEET AS AT MARCH 31, 2009 Schedule As at March 31, 2009 ASSETS (Rs) Investments 1 20,934,295 Deposits 2 - Other Current Assets 3 3,714,744 Deferred Revenue Expenditure 4 - Total Assets 24,649,039 LIABILITIES

Unit Capital 5

21,891,027


1,111,122 Current Liabilities & Provisions 7

1,646,890

Total Liabilities



SAHARA BANKING AND FINANCIALS SERVICES FUND

REVENUE ACCOUNT FOR THE PERIOD September 17, 2008 To March 31, 2009

Schedule

For the period September 17, 2008 to March 31, 2009

(Rs) INCOME

Dividend Income

2,000

Interest Income 8

642,110


196,274 (Other than Inter Scheme Transfer / Sale)

Total Income 840,384 EXPENSES & LOSSES

Management Fees

141,947 Trusteeship Fees & expenses

14,652

Audit Fees

11,729 Deferred Revenue Expenditure written off -

Custodian Fees

25,064


37,117

Insurance

6,908


31,916

Legal & Professional fees

21,605

Total Expenses

290,938


549,446


(501,779)


13,140


60,807 Significant Accounting Policies and Notes to the accounts 10 Schedules 8 to 10 form an integral part of the Revenue Account As per our attached report of even date

For Chaturvedi & Co For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place : Mumbai Date: 22/06/2009

SCHEDULES FORMING PART OF THE BALANCE SHEET

As at March 31,

2009 (Rs) SCHEDULE 1 Investments (Refer Note 7.14 of Schedule 10 for detailed Portfolio statement)

Equity Shares

20,934,295


-



-



2,499,085


1,215,517


-


142


-


Incurred during the period -

Less:- Amortised during the period -



Dividend

2,845,221 Dividend Option 284522.1210 units of Rs.10 each

Growth


Total

21,891,027 (Refer Note 7.10 of Schedule 10)

SCHEDULES FORMING PART OF THE BALANCE SHEET SCHEDULE 6 Reserves and Surplus Revenue Reserve

Balance as at beginning of the year -


60,807


60,807 Income Equalisation Reserve



13,140


(13,140)





1,050,913





(598)


(598)

1,111,122

SCHEDULE 7

As at March 31,

2009 (Rs) Current Liabilities and Provisions

Sundry Creditors

41,138


3,452


-


1,602,212


-



1,646,890

SCHEDULES FORMING PART OF REVENUE ACCOUNT SCHEDULE 8 Interest & Discount Income


-

Fixed Deposit

-


-

Treasury Bills

-

Reverse Repo

642,110



-


(501,779)

Provision for Depreciation

(501,779)

SAHARA BANKING AND FINANCIAL SERVICES FUND

Perspective Historical Per Unit Statistics Particulars

As at 31-Mar-09 (Rs. Per

Unit) (a) Gross Income (i) Income other than Profit on sale of Investments 0.2942 (ii) Income from Profit (net of loss) on inter-scheme sales/ 0.0000 transfer of Investments (iii) Income from Profit (net of Loss) on sale other 0.0897 than Inter scheme (iv) Transfer to revenue account from past year's 0.0000 reserve (b) Aggregate of expenses, write off, amortisation and charges 0.1329 (c) Net Income 0.2510 (d) Net unrealised appreciation/(dimunition) in value of Investments 0.2509 (e) Net Asset Value Dividend Plan 10.5040 Growth Plan 10.5081

(f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 10.9320 Fixed Pricing - Growth Plan 10.9362 (ii) Lowest Fixed Pricing - Dividend Plan 9.3119 Fixed Pricing - Growth Plan 9.3152 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 11.2909 Fixed Pricing - Growth Plan 11.2953 (ii) Lowest Fixed Pricing - Dividend Plan 9.6176 Fixed Pricing - Growth Plan 9.6210 (h) Ratio of expenses to average daily net assets by Percentage 1.58% (i) Ratio of income to average daily net assets by Percentage 4.58%

(excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annaulised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period


1. INTRODUCTION


SAHARA Banking and Financial Services Fund is an open ended sectoral growth scheme of Sahara Mutual Fund (the “Fund”). The investment objective is to provide long term capital appreciation through investment in equities and equities related securities of companies engaged in Banking & Financial Services, either whole or in part The Scheme has two options - Growth and Dividend. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The New Fund Offer period of the scheme was from 28/07/2008 to 26/08/2008.





Equity 17.53 %



Sahara India Commercial Corporation Ltd Preference 90.32 % Sahara Care Ltd Preference 9.68 %
























2. 4 Revenue Recognition

2.4.1.Income and Expenses are recognized on accrual basis.

2.4.2.Interest on funds invested in short term deposits with scheduled commercial banks is recognized on accrual basis.






Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options / Scheme, after an appropriate of the issue proceeds and redemption payout is credited or debited respectively to the income equalization account. The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.




In line with SEBI circular no. MFD/CIR/9/120 /2000 dated November 24, 2000, the unclaimed redemption and dividend amounts may be deployed by the mutual funds in call money market or money market instruments only and the investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount can be transferred to a pool account and the investors can claim the unclaimed redemption amount at NAV prevailing at the end of the third year. The income earned on such funds can be used for the purpose of investor education. The AMC should make continuous effort to remind the investors through letters to take their

unclaimed amounts. Further, the investment management fee charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points.





In accordance with Deed of Trust dated 18th July 1996 between the Settler and the Trustees, the fund has paid or provided an annual fee of Rs.1,00,000/- per Trustee. Trusteeship fees & expenses are allocated to the schemes on the basis of their daily average net assets.

Custodian Charges



the Income Tax Act, 1961.


7.4 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March

31, 2009 the aggregate market value of securities under Sahara Banking and Financial Services Fund but held in the name of Sahara Mutual Fund is Rs. 1,215,658.41





Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66 (Rs.In lakhs)

R. E. A. L Fund

Classic Fund




Sr 1 1.90 0.01 0.85 3.10 0.01

7.6 The aggregate value of Investment purchased and sold(Including Redemption) during the year as a percentage of

daily average net asset value; Purchases


Sales


7.7 Load Charges


7.8 Aggregate Appreciation and Depreciation in the value of Investments : Asset Class

31-Mar-09



Equity Shares 10.51 5.02


2008-09 Total Income (including net unrealized appreciation and net of loss on sale of investments) to average net assets calculated on a daily basis.

4.58 %


1.58 %




As on March 31,


2009 Initial Capital 1,902,668.279 19,026,683Opening Balance 0.000 0Units Sold during the year 2,059,724.856 20,597,249Units Repurchased during the year (155,144.295) (1,551,443)Closing Balance 1,904,580.561 19,045,806



As on March 31,


2009 Initial Capital 356,886.705 3,568,867Opening Balance 0.000 0Units Sold during the year 368,019.676 3,680,197Units Repurchased during the year (83,497.555) (834,976)Closing Balance 284,522.121 2,845,221

7.11 The scheme has declared nil dividend during the year (PY: N/A). There was no bonus declared during the year

ended March 31, 2009 (PY: N/A).




(Rs)

No. of Investors


(Rs) Sahara Banking and Financial Services Fund - - - -





% to Mkt. Value of

Investments



BANKS 90.54 State Bank of India 3200 34.15 HDFC Bank Ltd 3000 29.20 ICICI Bank Ltd 7500 24.96 Andhra Bank Limited 40000 18.08 Union Bank of India 11000 16.15 Bank of Baroda Ltd 6000 14.06 Bank of India 5000 10.97 Allahabad Bank 25000 9.70 Punjab National Bank 2000 8.23 Yes Bank Ltd 14000 7.00 Axis Bank Limited 1500 6.22 Indian Overseas Bank 12500 5.70 South Indian Bank Ltd 10000 5.12 FINANCE 9.46 Infrastructure Development Finance Co.Ltd 20000 10.82 LIC Housing Finance Ltd 4000 8.98 Equity Total 164700 209.34 100.00 (b) Unlisted Nil Nil Nil 2) Debt Instruments Nil Nil Nil (a) Listed / awaiting listing on Stock Exchanges Nil Nil Nil (b) Privately Placed / Unlisted Nil Nil Nil (c ) Securitised Debt Nil Nil Nil 3) Money Market Instruments Nil Nil Nil 4) Short Term Deposits Nil Nil Nil 5) Others - Current Assets ( 8.99%) Nil 20.68 100.00 Grand Total 164700 230.02



Particulars As on March 31, 2009 Number of Investors Nil

Percentage of Holdings N/A

7 .17 Contingent Liability: Nil

7.18 Previous year’s figures have not been given as the scheme was launched in the current year. As per our attached report of even date



1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Gilt Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. According to the explanations given to us and read with point no. 7.3 of Schedule 8 to the Financial Statements, appropriate amounts have been transferred by the scheme to Unit Premium Reserve Account and Income Equalization Account the basis for which has been changed in the current year from Management estimates to the best practice followed by the Industry. 5. In our opinion and to the best of our information and according to the explanations given to us: 5.1The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and give a true and fair view in conformity with the Accounting principles generally accepted in India i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the deficit for the year ended on that date.



(S N Chaturvedi)


Sahara Gilt Fund

BALANCE SHEET AS AT MARCH 31, 2009 Schedule As at As at March 31, 2009 March 31, 2008 ASSETS (Rs) (Rs) Investments 1 - -


2,985,453

359,566

Total Assets

2,985,453

359,566

LIABILITIES

Unit Capital 3

1,881,644

299,571 Reserves & Surplus 4

1,077,321 59,848


26,488

147

Total Liabilities

2,985,453

359,566

NET ASSET VALUE Net Asset Value per unit (Rs.)

i) Growth Option

15.9689

13.3461

ii) Dividend Option

13.3262


For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker Fund Manager Place :Mumbai Date: 22/06/2009

Sahara Gilt Fund REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009


ended For the year


Interest & Discount Income 6

85,029

289,834


(103,915)

5,754 (Other than Inter-Scheme Transfer / Sale) Profit on Sale / Transfer of Investments (Inter Scheme) (Net)

121

2,034

Total Income

(18,765)

297,621

EXPENSES & LOSSES

Loss on Sale / Redemption of Investments (Net) - - (Other than Inter-Scheme Transfer / Sale)

Management Fees

1,224

4,343


41

216

Audit Fees

33

237

Insurance

20

178

Custodian Fees

115

838


315

2,383


89

2,382


60

405

Other Operating Expenses

2,837

6,453

Total Expenses

4,735

17,434

Surplus for the year excluding unrealised depreciation

(23,500)

280,187 Provision for dimunition in value of investments 7 - - Surplus / (Deficit) for the year (Excluding unrealised Appreciation)

(23,500)

280,187


665,570

(492,727) Dividend Paid Including Dividend Tax - -

(Deficit) /Surplus transferred to Reserves

642,070

(212,540)

Significant Accounitng Policies and Notes to the accounts 8 Schedule 6 to 8 form an integral part of the Revenue account As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 (Rs) (Rs)

SCHEDULE 1 Investments (Refer note 7.15 of Schedule 8 for detailed Portfolio statement)

Government Securities -

-

Treasury Bills -

-

-

-


Balances with Banks in Current account

19,694

(20,358)

Receivable on Issue of Units

(7,226)

(7,227)


(146)

(571)


2,973,131

387,723

2,985,453

359,566 SCHEDULE 3 Unit Capital

Growth Option 170830.076 units of Rs.10 each

1,708,301

114,491 (For 2007-08 11449.101 units of Rs.10 each)


173,343

185,080 (For 2007-08 18508.015 units of Rs.10 each)

Total

1,881,644

299,571 (Refer Notes 7.11 of Schedule 8) SCHEDULES FORMING PART OF BALANCE SHEET As at As at March 31, 2009 March 31, 2008 SCHEDULE 4 (Rs) (Rs) Reserves and Surplus Revenue Reserve

Balance as at beginning of the year 60,151

272,692

Transferred from Revenue Account 642,070

(212,540)


702,221

60,151 Income Equalisation Account Balance as at beginning of the year - -

Added during the year

665,570 (492,727)


(665,570) 492,727


- -

Unrealised Appreciation Reserve Balance as at beginning of the year - - Added during the year - -


- -

Unit Premium Reserve


(304) 2,138

Added during the year , Net

375,404 (2,442)


375,100

(304)

1,077,321

59,848 SCHEDULE 5 Current Liabilities and Provisions

Sundry Creditors

2,485

(18,410)


33

31

Dividend Payable to Unit Holders

-

1,290

Payable on Redemption of Units

13,598

13,598

Load Charges Payable to AMC

10,372

3,638

(Refer note 7.8 of Schedule 8)

26,488

147 SCHEDULES FORMING PART OF REVENUE ACCOUNT

For the year

ended For the year


Government of India Securities

50,392 6,943

Reverse Repo

34,637 199,007

Treasury Bills

- 83,884

Deposits

- -

85,029 289,834

SCHEDULE 7

Provision for dimunition in the value of Investment

At the beginning of the year -

-

At the end of the year -

-

Further Provision for Depreciation -

-

Sahara Gilt Fund Perspective Historical Per unit statistics As at As at As at

Particulars 31-Mar-

09 31-Mar-

08 31-Mar-

07 (a) Gross Income (i) Income other than Profit on sale of Investments 0.45 9.67 6.91 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments 0.0006 0.0679 0.0000 (iii) Income from Profit (net of Loss) on sale other than Inter scheme -0.9646 0.96 -7.19 (iv) Transfer to revenue account from past year's reserve NA NA NA (b) Aggregate of expenses, write off, amortisation and charges 0.03 0.58 1.12 (c) Net Income -0.54 10.12 -1.40 (d) Net unrealised appreciation/(dimunition) in value of investments 0.00 0.00 0.00 (e) Net Asset Value Growth Plan 15.9689 13.3641 12.5563 Dividend Plan 13.3262 11.1526 10.4812 (f) Repurchase Price during the year** (i) Highest Growth Plan 17.9097 13.3449 12.4686 Dividend Plan 14.9458 11.1109 11.2281 (ii) Lowest Growth Plan 13.2364 12.5642 11.6739 Dividend Plan 11.0460 10.5010 10.8657 (g) Resale Price during the year** (I) Highest Growth Plan 18.1811 13.3159 12.5267 Dividend Plan 15.1723 - 10.9786 (ii) Lowest Growth Plan 13.3701 12.6001 11.7238 Dividend Plan 11.1576 - 10.4617 (h) Ratio of expenses to average daily net assets by percentage 0.34% 0.33% 1.12%

(i) Ratio of income to average daily net assets by Percentage (excluding transfer to revenue -1.34% 5.70% -0.28% account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the year

SCHEDULE: 8 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2009.

1. INTRODUCTION


Sahara Gilt Fund (the “Scheme”) is an Open Ended Scheme of Sahara Mutual Fund (the “Fund”). The primary objective is generating risk-free return and to provide medium to long term capital gains emphasizing the importance of capital preservation and investments will solely be in sovereign securities issued by Central or State Government or any security unconditionally guaranteed by Government of India. The scheme has two Plans – (i) Growth Plan and (ii) Dividend Plan. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The initial issue period of the scheme was from February 6, 2002 to February 14, 2002 and the scheme was reopen for continuous purchase and redemption at prevailing NAV from February 22, 2002.




Equity 17.53 %



2. SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of Accounting


2.2 Accounting for Investments

2.2.1 Purchase and sale of investments are accounted on trade dates at price including / net of brokerage and other charges. Stamp duty is accounted as an expense when paid for.

2.2.2 Profit or loss on sale of investments is determined on the respective trade date by adopting the “Weighted Average Cost” method

2.2.3 Primary market Investments are recognized on the basis of allotment advice.

2.3 Valuation of Investments

2.3.1 Government Securities are valued at the price released by an Agency (CRISIL) approved by AMFI, on daily basis.

2.3.2 Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.

2.3.3 Traded treasury bills, certificate of deposits and commercial paper are valued at the yield at which they are currently traded. Non-traded treasury bills, certificate of deposits and commercial paper including those not traded for a period of seven days are valued at cost plus accrued interest.

2.3.4 Investments in Mutual Fund Schemes are valued based on the Net Assets Value of the respective schemes as on the valuation date.

2.4 Unrealised Appreciation/Depreciation

In accordance with the Guidance Note on Accounting for Investments in the Financial Statements of Mutual Funds issued by the Institute of Chartered Accountants of India, the unrealized appreciation determined separately for each investment is directly transferred to the “Unrealised Appreciation Reserve Account” i.e. without routing it through the revenue account.

The provision for depreciation in value of investments determined separately for each individual investment is recognized in the revenue account. The loss on investments sold / transferred during the year is charged to revenue account, instead of being first adjusted against the provision for depreciation, if already created in the prior year, as recommended by the said Guidance Note. However, this departure from the Guidance Note does not have any impact on the Scheme’s net assets or result for the year.



2.5.2 Interest on Government of India Securities and Money Market Instruments are recognized on accrual basis.

2.5.3 Interest on funds invested in short-term deposits with scheduled commercial banks is recognized on accrual basis.





Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options /Scheme, after an appropriate amount of the issue proceeds and redemption payout is credited or debited respectively to the Income equalization account.



An appropriate part of the sale proceeds or the redemption amount, as the case may be, is transferred to income equalization account. The total distributable surplus (without considering unrealized appreciation) upto the date of issue/ redemption of units has been taken into account for the purpose of ascertaining the amount to be transferred to

Equalization Account on a daily basis. The net balance in this account is transferred to the Revenue Account at the end of the year.



7. Notes on Accounts


Management Fees

Management Fee ( inclusive of service tax) has been computed at 0.09 % on average net assets calculated on a daily basis

Trusteeship Fees & Expenses In accordance with Deed of Trust dated 18th July 1996 between the Settler and the Trustees, the fund has paid or provided an annual fee of Rs.1,00,000/- per Trustee. Trusteeship fees & Expenses are allocated to the schemes on the basis of their daily average net assets.

Custodian Charges

HDFC Bank Ltd provides Custodial Services to the scheme for which fees is paid as per the agreement.


7.3 During the current year , a new software was installed for NAV Accounting that has enabled the transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account, based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the Management on an estimate basis . However , this has no impact on the Net Asset Value of the Scheme.

7.4 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March 31, 2009 the aggregate market value of securities under Sahara Gilt Fund but held in the name of Sahara Mutual Fund is Rs.2,973,477.37. 7.5 Transactions with Brokers in excess of 5 % or more of the aggregate purchases and sale of securities made by

the Fund have been reported to the Trustees on a bimonthly basis. 7.6 Transactions with Associates

Brokerage / Commission on sale of units by the Scheme or by the Asset Management Company given to associates, pursuant to Regulation 25(8): Brokerage to SIFCL A/c CMSD (associate) has been made for sale of units of the MF as given below:


Tax Gain Fund

Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07

7.7 Aggregate Value of purchases and sales (Including Redemption) of Investments during the year as a percentage

of daily average net asset value;

Purchases Year Amount in Rupees % of Daily average

2008-09 2,945,473/- 99.05 2007-08 11,891,870 227.73

Sales

Year Amount in Rupees % of Daily average 2008-09 2,945,473/- 99.05 2007-08 11,891,870 227.73

7.8 Load Charges

Load charges are collected and reimbursed to the Asset Management Company for Selling and distribution expenses incurred by it on behalf of the schemes.







Government Securities - - - -



(1.34 %) 5.70%


0.34% 0.33%

7.11 Movement in Unit Capital



As on




March 31, 2008 Initial Capital 544,700.000 5,447,000 544,700.000 5,447,000

Opening Balance 11,449.114 114,491 102,799.081 1,027,991Units sold during

the year 258,721.293 2,587,213 7,899,605.478 78,996,055Units repurchased

during the year (99,340.318) (993,403) (7,990,955.445) (79,909,554)Closing Balance 170,830.089 1,708,301 11,449.114 114,491



As on




March 31, 2008 Initial Capital 52,642,000.000 526,420,000 52,642,000.000 526,420,000

Opening Balance 18,508.032 185,080 25,027.079 250,271 Units Sold during

the year 7834.372 78,344 0.00 0.00 Units Repurchased

during the year (9,008.032) (90,080) (6,519.047) (65,190) Closing Balance 17,334.372 173,344 18,508.032 185,080

7.12 The Fund has declared nil dividend during the year (PY: Rs.1/-). Further, there was no Bonus declared during the

year ended March 31, 2009 (PY: Nil).


Unclaimed Redemption and Dividend amounts as of March 31, 2009 are given below: Scheme name No of Investors Unclaimed

Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara Gilt Fund 2 1289.55 - -



7.15 Portfolio Statement as on March 31, 2009.

Name of the Instrument Qty Mkt Value ( Rs. in Lakhs)

% to Mkt. Value

Net Current Assets - 29.59 100.00

TOTAL 100.00 7.16 Investments made by the scheme in Securities of Group Companies of the sponsor – NIL



Number of Investors 1 Nil

Percentage of Holding 35.81% N/A

7.18 Previous year’s figures have been reclassified and regrouped wherever necessary to conform to current year’s

classification. As per our attached report of even date For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer A N Sridhar Fund Manager Place :Mumbai Date: 22/06/2009


1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Income Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.



i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the surplus for the year ended on that date.


7. The methods used to value non-traded/thinly traded securities as at March 31, 2009 as determined by the Management under procedures approved by the Trustees of Sahara Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable.


(SN Chaturvedi)


Sahara Income Fund

BALANCE SHEET AS AT MARCH 31, 2009 Schedule As at As at March 31, 2009 March 31, 2008 ASSETS (Rs) (Rs) Investments 1 23,713,463 15,050,697 Other Current Assets 2 558,182 516,715 Total Assets 24,271,645 15,567,412

LIABILITIES Unit Capital 3 15,146,160 10,925,427 Reserves & Surplus 4 9,038,718 4,372,843

Current Liabilities & Provisions 5 86,767 269,142

Total Liabilities 24,271,645 15,567,412

NET ASSET VALUE Net Asset Value per unit (Rs.) i) Growth Option 16.5216 14.2429 ii) Dividend Option 13.6014 11.7268 Significant Accounitng Policies and Notes to the accounts 8 Schedules 1 to 5 and 8 form an integral part of the Balance Sheet As per our attached report of even date


Sahara Income Fund REVENUE ACCOUNT FUND FOR THE YEAR ENDED MARCH 31, 2009

Schedule For the year ended For the year ended March 31, 2009 March 31, 2008 (Rs) (Rs) INCOME Interest & Discount Income 6 15,045,789 13,988,322 Profit on Sale / Redemption of Investments (Net) 365,871 118,052 (Other than Inter-Scheme Transfer / Sale) Profit on Sale / Transfer of Investments (Inter Scheme) (Net) 79,676 77 Total Income 15,491,336 14,106,451

EXPENSES & LOSSES Management Fees 159,783 172,422 Trusteeship Fees & expenses 28,929 14,476 Audit Fees 23,158 15,912 Custodian Fees 54,284 56,029 Registrar & Transfer Agent Charges 176,772 146,078 Insurance 13,640 11,919 Marketing & Distribution Expenses 63,015 159,920 Legal & Professional Fees 42,656 27,184

Total Expenses 562,237 603,940

Surplus / (Deficit) before unrealised depreciation 14,929,098 13,502,511 Provision for dimunition in value of investments 7 - - Surplus / (Deficit) for the Year (Excluding unrealised Appreciation) 14,929,098 13,502,511


(10,600,496) (12,363,831) Dividend Paid Including Dividend Tax - - Net (Deficit) transferred to Revenue Reserve 4,328,602 1,138,681 Significant Accounitng Policies and Notes to the accounts 8 Schedules 6 to 8 form an integral part of the Revenue Account As per our attached report of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 1 Investments (Refer Note 7.15 of schedule 8 for detailed portfolio statement)


-

-

Commercial Paper

23,713,463

15,050,697


-

-

Unlisted Non Convertible Debentures

-

-

Treasury Bills

-

-

23,713,463

15,050,697


Balances with Banks in Current account

297,374

126,923


64,350

101,659


196,458

211,764

Receivable on Issue of units

-

76,370

Receivable from AMC

-

-

558,182

516,715 SCHEDULE 3 Unit Capital

Growth Option units 1227302.966 of Rs.10 each

12,273,030

9,881,116 (For 2007-08 - 988111.5660 of Rs.10 each)


2,873,130

1,044,312 (For 2007-08 104431.157 units of Rs.10 each)

Total

15,146,160

10,925,427 (Refer Note 7.11 of schedule 8) SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at SCHEDULE 4 March 31, 2009 March 31, 2008 (Rs) (Rs) Reserves and Surplus Revenue Reserve


4,419,001

3,280,320


4,328,602

1,138,681


8,747,603


Addition during the year

(10,600,496)

(12,363,831)


10,600,496

12,363,831 Balance as at end of the year - -

Unrealised Appreciation Reserve Balance as at beginning of the year - - Additions / (deletions) during the year - - Balance as at end of the year - - Unit Premium Reserve


(46,158) (144,864)

Additions during the year, Net

337,273 98,706


291,115

(46,158)

9,038,718


Sundry Creditors

(22,778)

62,492


-

1,203

Dividend Payable to Unit Holder

-

11,287

Payable on Redemption of units

109,545

194,160

Load Payable to AMC

-

- (Refer note 7.8 of Schedule 8)

86,767


For the year

ended For the year

ended SCHEDULE 6 March 31, 2009 March 31, 2008 (Rs) (Rs) Interest & Discount Income

Debentures / Bonds

1,452,552

2,509,663


243,939

40,052

Repo

335,517

-

Certificate of Deposit / Commercial Paper

13,013,781

11,288,685

Deposits

-

-

Others

-

149,921

15,045,789

13,988,322 SCHEDULE 7 Provision for dimunition in the value of Investment


-


-


-

Sahara Income Fund


Particulars As at As at As at

31-Mar-

09 31-Mar-

08 31-Mar-07 (a) Gross Income (I) Income other than Profit on sale of Investments 9.93 12.80 2.916854788 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments 0.05 0.00 -7.20284E-05 (iii) Income from Profit (net of Loss) on sale other than Inter scheme 0.24 0.27 0 (iv) Transfer to revenue account from past year's reserve NA NA NA (b) Aggregate of expenses, write off, amortisation and charges 0.37 0.55 0.257153711 (c) Net Income 9.86 12.52 2.659629049 (d) Net unrealised appreciation/(dimunition) in value of Investments 0.0000 0.0000 0 (e) Net Asset Value Growth Plan 13.6014 14.2429 13.1108 Dividend Plan 16.5216 11.7268 10.7974 (f) Repurchase Price during the year** (i) Highest Growth Plan 17.1735 14.2227 13.1005 Dividend Plan 14.1388 11.4079 11.7746 (ii) Lowest Growth Plan 14.1785 13.1054 12.1768 Dividend Plan 11.6737 10.8185 10.9784 (g) Resale Price during the year** (i) Highest Growth Plan 17.2598 14.2194 13.0951 Dividend Plan 14.2098 11.5763 11.2597 (ii) Lowest Growth Plan 14.2497 13.1609 12.2366 Dividend Plan 11.7324 10.8897 10.7889 (h) Ratio of expenses to average daily net assets by percentage 0.35% 0.35% 0.65% (i) Ratio of income to average daily net assets by percentage 9.62% 8.19% 7.36% (excluding transfer to revenue account from past year's reserve but including net

change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) Per unit calculations based on number of units in issue at the end of the year **Based on the maximum load during the year


1. INTRODUCTION


Sahara India Income Fund (the “Scheme”) is an Open Ended Income Scheme of Sahara Mutual Fund (the “Fund”). The primary objective is generating regular income and also enable growth of capital through investment in debt instruments, money market and related securities and at all times emphasizes importance of capital preservation. The scheme has two Plans – (i) Growth plan and (ii) Dividend plan. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The initial issue period of the scheme was from February 6, 2002 to February 14, 2002 and the scheme was reopen for continuous purchase and redemption at prevailing NAV from February 22, 2002.



Name of the Shareholder Type of Holdings Holding Sahara India Financial Corporation Limited Equity 48.64 % Sahara India Corp Investment Limited Equity 17.53 % Sahara Prime City Limited formerly Sahara India Investment Corporation Limited )

Equity 17.53 %



2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Accounting






2.2.4 Front end fees on privately placed debentures have been adjusted to the cost of investments.



a. Investments which are traded on a stock exchange are valued at the last available price quoted at an appropriate stock exchange on the valuation date.

b. If there is no quote on the valuation date, it is valued at the last available quoted price at an appropriate stock exchange not exceeding 15 days preceding the valuation date.

c. Government Securities are valued at the price released by an Agency (CRISIL) approved by AMFI, on daily basis.

2.3.2 Unlisted/Non traded/Thinly Traded Investments

a. A debt security (other than a Government security) is considered as a thinly traded security if on the valuation date, there are no individual trades in that security in marketable lots (currently Rs. 5 Crores) on the principal stock exchange or any other stock exchange.

b. Investments not traded on any stock exchange for a prescribed period prior to the valuation date are treated as non-traded.

c. Valuation of Unlisted/Non-traded/Thinly Traded debt instruments maturing within 182 days as at valuation date are valued at cost plus difference between the redemption value and the cost spread uniformly over the remaining maturity period of instrument.

d. Unlisted/Non traded/Thinly traded debt securities with over 182 days to maturity are valued in good faith by the Investment manager on the basis of valuation principles laid down by SEBI.












2.4.3 Interest on Debentures, Government of India securities and Money Market Instruments are recognized on accrual basis


3 Net Asset Value for Growth / Dividend Options:



Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options / Scheme, after an appropriate amount of the issue proceeds and redemption payout is credited or debited respectively to the Income equalization account. The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.

5 Income Equalisation Reserve









Custodian Charges




the transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account ,based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the management on an estimate basis. However, this has no impact on the Net Asset Value of the scheme

7.4 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March 31, 2009 the aggregate market value of securities under Sahara Income Fund but held in the name of Sahara Mutual Fund is Rs.196,480.66.


Fund have been reported to the Trustees on a bimonthly basis.

7.6 Transactions with Associates Brokerage / Commission on sale of units by the Scheme or by the Asset Management Company given to associates, pursuant to Regulation 25(8): Brokerage to SIFCL A/c CMSD (Associate) has been made for sale of units of the MF as given below:


Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt und

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07

7.7 Aggregate Value of purchases and sales of Investments during the year as a percentage of daily average net asset value;

Purchases

Year Amount in Rupees % of Daily average 2008-09 3,797,555,449 2359.00 2007-08 4,633,721,966 2691.91

Sales

Year Amount in Rupees % of Daily average 2008-09 3,689,168,783 2291.67 2007-08 4,630,099,974 2689.81

7.8 Load Charges








Sahara Income Fund

Bonds/NCDs - - - -

MMI's - - - -

Government Securities - - - -



9.62 % 8.19 %


0.35 % 0.35 %


7.11.1 Growth Option Number of Units Amount (Rs) Number of Units Amount (Rs)

As on




March 31, 2008 Initial Capital 20,125,350.000 201,253,500 20,125,350.000 201,253,500Opening Balance 988,111.819 9,881,118 978,469.415 9,784,694Units Sold during the year 245,247,367.277 2,452,473,673 326,251,691.501 3,262,516,915Units Repurchased during the year (245,008,175.877) (2,450,081,759) (326,242,049.097) (3,262,420,491)Closing Balance 1,227,303.219 12,273,032 988,111.819 9,881,118 7.11.2 Dividend Option


As on




March 31, 2008 Initial Capital 2,405,600.000 24,056,000 2,405,600.000 24,056,000Opening Balance 104,431.172 1,044,312 114,849.866 1,148,499Units Sold during the year 203,987.612 2,039,876 4,448.799 44,488Units Repurchased during the year (21,105.769) (211,058) (14,867.493) (148,675)Closing Balance 287,313.015 2,873,130 104,431.172 1,044,312

7.12 The Fund has declared nil dividend during the year ended March 31, 2009 (PY: Nil) Further, there was no Bonus declared during the year ended March 31, 2009 (PY: Nil).



Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara Income Fund 17 11,286.22 8 36,862.60




Name of the Instrument Qty Mkt Value ( Rs. Lacs)

% of Market Value

CERTIFICATE OF DEPOSITS (98.32%)

Banks

Canara Bank CD mat 17th Sep 2009 ** 125 118.95 50.03

State Bank of Travancore - CD - 21th Sep 2009 ** 125 118.83 49.97

TOTAL 250 237.78 100.00 ** Thinly Traded/ Non Traded securities

7.16 Investments made by the scheme in Securities of Group Companies of the sponsor – NIL.

7.17 Holdings over 25% of the NAV of the scheme


Number of Investors 1 1 Percentage of holdings 34.46% 46.96%

7.18 Previous year’s figures have been reclassified and regrouped wherever necessary to conform to the current year’s

classification. As per our attached of even date



1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Liquid Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.


4. According to the explanations given to us and read with point no. 7.3 of Schedule 9 to the Financial Statements, appropriate amounts have been transferred by the scheme to Unit Premium Reserve Account and Income Equalization Account the basis for which has been changed in the current year from Management estimates to the best practice followed by the Industry.

5. In our opinion and to the best of our information and according to the explanations given to us: 5.1The Balance Sheet and the Revenue Account together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable and give a true and fair view in conformity with the Accounting principles generally accepted in India i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the surplus for the year ended on that date.

6. The Balance Sheet and the Revenue Account together with the notes thereon, have been prepared in accordance with the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable. 7. The methods used to value non-traded/thinly traded securities as at March 31, 2009 as determined by the Management under procedures approved by the Trustees of Sahara Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable.


(SN Chaturvedi)


SAHARA LIQUID FUND BALANCE SHEET AS AT MARCH 31, 2009


Investments 1

1,138,480,776

1,033,893,886

Deposits 2

-

-


232,292,370

26,439,479

Total Assets

1,370,773,146

1,060,333,365

LIABILITIES

Unit Capital 4

1,168,495,981

744,951,137


201,756,486

312,066,697


520,679

3,315,531

Total Liabilities

1,370,773,146

1,060,333,365

NET ASSET VALUE Net Asset Value Per Unit (Rs.) Fixed Dividend Plan 1,024.9045 1,024.9045 Fixed Growth Plan 1,579.8757 1,448.9558 Fixed Weekly Div Plan 0.0000 0.0000 Fixed Monthly Div Plan 1,025.5451 1,025.1594 Variable Daily Div Plan 1,024.9262 1,024.9262 Variable Weekly Div Plan 1,025.8037 1,025.4140 Variable Monthly Div Plan 1,025.8889 1,025.4941 Variable Growth Plan 1,591.3021 1,456.3591 Significant Accounting Policies and Notes to the accounts 9 Schedules 1 to 6 and 9 form an integral part of the Balance Sheet As per our attached report of even date


SAHARA LIQUID FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009


ended For the year

ended March 31, 2009 March 31, 2008 INCOME (Rs) (Rs)

Interest & Discount Income 7

92,495,598

93,428,446

Profit on Sale / Transfer of Investments (Net)

364,844

127,866 (Other than Inter-Scheme Transfer / Sale) Profit on Sale / Transfer of Investments (Inter Scheme) (Net)

(16)

5

Total Income

92,860,426

93,556,318

EXPENSES & LOSSES

Management Fees 623,213

976,279

Trusteeship Fees & Expenses 227,695

121,726

Audit Fees 182,273

133,802

Custodian Charges 503,747

353,277

Insurance charges 107,359

100,226

Registrar & Transfer agent charges 769,298

716,899

Marketing & Other Expenses 495,972

1,344,723

Legal & Professional Fees 335,736

228,584

Total Expenses

3,245,293

3,975,515

Surplus for the year excluding unrealised depreciation

89,615,133

89,580,801

Provision for dimunition in the value of 8

-

- Investment


(203,546,435)

(83,158,630)

Dividend including Distribution Tax

(7,556,960)

(6,835,991)

Surplus / (Deficit) transferred to Revenue Reserve

(121,488,262)

(413,820) Significant Accounitng Policies and Notes to the accounts 9 Schedules 7 to 9 form an integral part of the Revenue account As per our attached report of even date


SAHARA LIQUID FUND SCHEDULES FORMING PART OF BALANCE SHEET

As at As at March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 1 Investments (Refer Note 7.13 of schedule 9 for detailed Portfolio statement)

Bonds

100,000,000

Privately Placed Debentures

- 100,000,000

Mibor Linked Debentures

20,000,000 40,000,000

Commercial Papers

93,756,288 893,893,886


924,724,488

Pass Through Certificates

-

1,138,480,776 1,033,893,886 SCHEDULE 2 Deposits With Scheduled Bank - - SCHEDULE 3 Other Current Assets Balances with Banks in Current accounts 923,541 1,181,150 Reverse Repo arrangements 218,685,880 14,791,784 Outstanding and Accrued Income 12,477,066 8,231,590 Receivable on issue/ switch in of units 202,581 2,234,955 Receivable from AMC 3,302 232,292,370 26,439,478 SCHEDULE 4 Unit Capital

Fixed Dividend Option ( 40985.8260 Units of Rs.1000 Each)

40,985,826 38,472,503 (For 2007-2008 38472.5030 Units of Rs.1000 Each)

Fixed Growth Option ( 524.6277 Units of Rs 1000 Each)

524,628 506,375 (For 2007-2008 506.3747 Units of Rs 1000 Each)

Fixed Weekly Dividend Option (Nil Units of Rs.1000 Each)

- (For 2007-2008 Nil Units of Rs.1000 Each)

Fixed Monthly Dividend Option (513.1840 Units of Rs.1000 Each)

513,184 34,651

(For 2007-2008 34.6510 Units of Rs.1000 Each) Variable Daily Dividend Option (23354.0170 Units of Rs. 1000 Each)

23,354,017 21,502,049

(For 2007-2008 21502.049 Units of Rs. 1000 Each) Variable Weekly Dividend Option (607.1483 Units of Rs. 1000 Each)

607,148 619,158

(For 2007-2008 619.158 Units of Rs. 1000 Each)

Variable Monthly Dividend Option (799583.1740 Units of Rs. 1000 Each)

799,583,174 4,020,355 (For 2007-2008 4020.3550 Units of Rs. 1000 Each)

Variable Growth Option (302928.0040 Units of Rs.1000 Each)

302,928,004 679,796,046 (For 2007-2008 679796.0460 Units of Rs.1000 Each)

Total

1,168,495,981 744,951,137 (Refer Note 7.10 of Schedule 9) SCHEDULES FORMING PART OF BALANCE SHEET SCHEDULE 5 As at As at March 31, 2009 March 31, 2008 Reserves and Surplus (Rs) (Rs) Revenue Reserve


344,562,084

344,975,903


(121,488,262)

(413,820)


223,073,822 344,562,084 Income Equalisation Reserve Balance as at beginning of the year

Additions during the year

(203,546,435)

(83,158,630)


203,546,435

83,158,630


- Unrealised Appreciation Reserve Balance as at beginning of the year - - Additions during the year - -


- Unit Premium Reserve


(32,495,387)

(40,673,828)

Additions during the year, Net

11,178,051

8,178,441


(21,317,336) (32,495,387)

201,756,486 312,066,697 SCHEDULE 6

Current Liabilities and Provisions

Sundry Creditors

- 618,988


13,934 56,815

Payable on Redemption of units

- 2,601,082

Dividend Payable to Unit Holder Including Tax - 32,645

Others Payable

506,745 6,000

Loads Payable

- 2

520,679 3,315,531

SCHEDULES FORMING PART OF REVENUE ACCOUNT For the year

ended For the year

ended March 31, 2009 March 31, 2008 SCHEDULE 7 (Rs) (Rs) Interest & Discount Income

Debentures / Bonds

5,062,495 9,983,304

Pass Through Certificate

- 194,932

Mibor linked debentures

6,622,345 6,559,163

Treasury Bills

-

Certificate of Deposits & Commercial Paper

79,177,883 74,508,658

Deposits

- 1,248,931

Reverse Repose arrangements

1,627,904 933,459

Other Income

4,971

92,495,598 93,428,446 SCHEDULE 8 Provision for dimunition in the value ofInvestment


-


-


-

SAHARA LIQUID FUND



(Rs Per

Unit ) (Rs Per

Unit ) (Rs Per

Unit ) (A) Gross Income

(I) Income other than Profit on sale of Investments 79.16 125.42 95.27 (ii) Income from Profit (net of loss) on inter-scheme sales/

transfer of Investments 0.0000 0.0000

0.02 (iii) Income from Profit (net of Loss) on sale other

than Inter scheme 0.3122 0.17

- (iv) Transfer to revenue account from past year's reserve NA NA NA

(B) Aggregate of expenses, write off, amortisation and charges 2.46 5.03

4.32

(c) Net Income 77.01 120.56

90.97 (d) Net unrealised appreciation/(dimunition) in value of Investments 0.00 0.00

-

(e) Net Asset Value Fixed Growth Plan 1,579.8757 1448.9558 1341.8953 Fixed Dividend Plan 1,024.9045 1024.9045 1024.7690 Fixed Weekly Dividend Plan 0.0000 0.0000 - Fixed Monthly Dividend Plan 1,025.5451 1025.1594 - Variable Growth Plan 1,591.3021 1456.3591 - Variable Dividend Plan 1,024.9262 1024.9262 - Variable Weekly Dividend Plan 1,025.8037 1025.4140 - Variable Monthly Dividend Plan 1,025.8889 1025.4941 - (f) Repurchase Price during the year (I) Highest Fixed Growth Plan 1579.8757 1448.6199 1340.3967 Fixed Dividend Plan 1024.9045 1024.9045 1024.7262 Fixed Weekly Dividend Plan 1026.2355 1026.2355 - Fixed Monthly Dividend Plan 1034.0438 1030.3712 - Variable Growth Plan 1591.3021 1456.3591 - Variable Dividend Plan 1024.9262 1024.9262 - Variable Weekly Dividend Plan 1026.7874 1026.2754 - Variable Monthly Dividend Plan 1034.5498 1032.5603 - (ii) Lowest Fixed Growth Plan 1449.2918 1343.6656 1258.0017 Fixed Dividend Plan 1024.9045 1024.7830 1024.0202 Fixed Weekly Dividend Plan 1026.2355 1025.9410 - Fixed Monthly Dividend Plan 1024.6771 1030.3712 - Variable Growth Plan 1456.7076 1346.6629 - Variable Dividend Plan 1024.9262 1024.7871 - Variable Weekly Dividend Plan 1024.9241 1024.7532 - Variable Monthly Dividend Plan 1025.0024 1025.0024 - (g) Resale Price during the year (I) Highest Fixed Growth Plan 1579.8757 1444.4502 1338.8179 Fixed Dividend Plan 1024.9045 1024.9046 1024.7690 Fixed Weekly Dividend Plan 1026.2355 1024.9475 - Fixed Monthly Dividend Plan 1034.0438 1024.6771 - Variable Growth Plan 1591.3021 1456.0107 - Variable Dividend Plan 1024.9262 1024.9262 -

Variable Weekly Dividend Plan 1026.7874 1026.2293 - Variable Monthly Dividend Plan 1034.5498 1032.7479 - (ii) Lowest Fixed Growth Plan 1449.2918 1357.1404 1262.9721 Fixed Dividend Plan 1024.9045 1024.7698 1023.9374 Fixed Weekly Dividend Plan 1026.2355 1024.8026 - Fixed Monthly Dividend Plan 1024.6771 1024.4656 - Variable Growth Plan 1456.7076 1347.1026 - Variable Dividend Plan 1024.9262 1024.7851 - Variable Weekly Dividend Plan 1024.9241 1024.7532 - Variable Monthly Dividend Plan 1025.0024 1024.8856 - (h) Ratio of expenses to average daily net assets by Percentage 0.28% 0.33% 0.29% (i) Ratio of income to average daily net assets by Percentage

9.16% 8.13% 7.12%

(excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the year

SCHEDULE: 9 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2009

1. INTRODUCTION


Sahara Liquid Fund (The “Scheme”) is an Open Ended Income Scheme of Sahara Mutual Fund (the “Fund”). The primary objective the scheme is to create a highly liquid portfolio of good quality Debt as well as Money Market Instruments with a view to provide high liquidity and reasonable returns. The scheme has two options namely Fixed Pricing Option and Variable Pricing Option and sub options viz, (i) Growth option (ii) Daily Dividend Option, (iii) Weekly Dividend Option and (iv) Monthly Dividend Option under both Fixed Pricing Option and Variable Pricing Option. The Variable Pricing Option has been introduced under the scheme with effect from 27th October, 2005. The face value of units has been changed from Rs.10/- per unit to Rs.1000/- per unit by consolidation of units w.e.f 27th October, 2005. The Scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The initial issue period of the scheme was from February 6, 2002 to February 14, 2002 and the scheme was open for continuous purchase and redemption at the prevailing NAV from February 20, 2002.


Sahara Mutual Fund (SMF) has been established as a Trust in accordance with the Indian Trusts Act, 1882, and is sponsored by Sahara India Financial Corporation Limited (“SIFCL”). Sahara Asset Management Company Private Limited (“SAMCPL”), a company incorporated under the Companies Act, 1956, and has been appointed as the Asset Management Company (“Investment Manager”) to Sahara Mutual Fund.

The Shareholding of Sahara Asset Management Company Private Limited as on March 31, 2009 is as follows:


Equity 17.53 %



2 SIGNIFICANT ACCOUNTING POLICIES






2.2.3 Primary market Investments are recognized on the basis of allotment advice.

2.2.4 Front end fees on privately placed debentures are adjusted to the cost of Investments.







a. A debt security (other than a Government security) is considered as a thinly traded security if on the valuation date, there are no individual trades in that security in marketable lots (currently Rs. 5 crores) on the principal stock exchange or any other stock exchange.



d. Unlisted/Non traded/thinly traded debt securities with over 182 days to maturity are valued in good faith by the Investment manager on the basis of valuation principles laid down by SEBI.



b. Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest up to the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest up to the date of repurchase) and the value of the instrument.



2.3.4 Unrealized appreciation/Depreciation

In accordance with the Guidance Note on Accounting for Investments in the Financial Statements of Mutual Funds issued by the Institute of Chartered Accountants of India, the unrealized appreciation determined separately for each individual investment is directly transferred to the “Unrealized Appreciation Reserve Account” i.e. without routing it through the revenue account.

The provision for depreciation in value of investments determined separately for each individual investment is recognized in the revenue account. The loss on investments sold / transferred during the year is charged to revenue account, instead of being first adjusted against the provision for depreciation, if already created in the prior year, as recommended by the said Guidance Note. However, this departure from the Guidance Note does not have any impact on the Scheme’s net assets or the results for the year.



2.4.2 Interest on Debentures, Government of India securities, Floating Rate Bonds and Money Market Instruments are recognized on accrual basis



3 Net Asset Value for Fixed & Variable Pricing Options

The net asset value of the units is determined separately for units issued under the Fixed Pricing Option & Variable Pricing Option each having sub options Growth, Daily Dividend, Weekly Dividend and Monthly Dividend. For reporting the net asset value of various options, daily income earned, including realized and unrealized gain or loss in the value of investments and expenses incurred by the scheme are allocated to the options in proportion to the value of the net assets


Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options / Scheme, after an appropriate amount of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve. The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.

5 Income Equalization Account

An appropriate part of the sale proceeds or the redemption amount, as the case may be, is transferred to income equalization account. The total distributable surplus (without considering unrealized appreciation) upto the date of issue/ redemption of units has been taken into account for the purpose of ascertaining the amount to be transferred to Equalization Account on a daily basis. The net balance in this account is transferred to the Revenue Account at the end of the year




7.1 Management Fees, Trustee Fees, Custodian Fees

Management Fees

The total Management Fees (inclusive of service tax) has been computed at 0.10% on average net assets calculated on a daily basis.

Variable Pricing Option Under the variable pricing option the AMC fee charged is based on the scheme’s performance on a daily basis and is computed of average net assets calculated on a daily basis. 1 2 3 4 5

Reference Point = MIBOR

Where NPR < Reference Point( i.e when NPR is negative)

Where NPR = Reference Point

Where NPR > Reference Point and the difference between the two is less than 10 basis points.

Where NPR > Reference Point and the difference between the two is greater than or equal to 10 basis points.(Subject to condition stated in column 5)

Where NPR > Reference Point plus 10% of Reference Point. plus 10 basis points

IMA Nil Nil Charged to the extent of out performance only

0.25 0.25 plus additional AMC fees of 1 basis points would be charged for every 10 basis points of out performance as mentioned above

Net Portfolio Return (NPR) = Gross Portfolio Return-Scheme Recurring Expenses IMA= Investment Management Advisory fees

GPR = Total Income during the day (Including Net Appreciation/Depreciation)/Opening net assets * 100

Scheme Recurring Expenses is total expenses during the day excluding IMA

Fixed Pricing Option: The Management Fees under this option has been computed on average net assets calculated on a daily basis. Trusteeship Fees & Expenses In accordance with Deed of Trust dated 18th July 1996 between the Settler and the Trustees, the fund has paid or provided an annual fee of Rs.1,00,000/- per Trustee. Trusteeship fees & expenses are allocated to the schemes on the basis of their daily average net assets.


7.2 Provision for tax has not been made since the income of the Scheme is exempt from tax under Section 10(23D) of the Income Tax Act, 1961.


the transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account ,based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the management on an estimate basis. However, this has no impact on the Net Asset Value of the scheme


2008 the aggregate market value of securities under Sahara Liquid Fund but held in the name of Sahara Mutual Fund is Rs. 218,711,343.38

7.5 Transactions with Brokers in excess of 5% or more of the aggregate purchases and sale of securities made by the Fund has been reported to the Trustees on a bimonthly basis.




Tax Gain Fund

Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66

(Rs.In lakhs) R. E. A. L

Fund Classic Fund




1.90 0.01 0.85 3.10 0.01 Brokerage to SIFCL A/c CMSD (Associate) made for sale of units of the MF for the previous year ended 31st March 2008. (Rs In lakhs)

Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07

7.7 The Aggregate Value of Investment purchased and sold(Including Redemption) during the year as a percentage of daily average net asset value;

Purchases

Year Amount in Rupees % of Daily Average 2008-09 8,400,743,012 828.91 2007-08 11,225,571,469 977.22

Sales

Year Amount in Rupees % of Daily Average 2008-09 8,307,790,190 819.74 2007-08 11,461,914,815 997.79







Debentures & Bonds/PTC - - - -

MMI's - - - - 7.9 Income and Expense Ratio


9.16% 8.13%


0.32 % 0.35%


7.10.1 Fixed Pricing Option – (Growth Option )

Face

Value (Rs.) Number of Units Amount (Rs) Number of Units Amount (Rs)

As on As on As on As on


Initial Capital 10 22,977,400.000 229,774,000 22,977,400.000 229,774,000

Opening Balance 1000 506.375 506,375 2,611.777 2,611,777 Units Sold during the period 1000 311.638 311,638 1,455.125 1,455,125 Units Repurchased during the period 1000 (293.385) (293,385) (3,560.527) (3,560,527)

Closing Balance 524.628 524,628 506.375 506,375

7.10.2 Fixed Pricing Option - Dividend Option (Daily Dividend )

Face Value (Rs.)


As on As on As on As on


Initial Capital 10 5,376,000.000 53,760,000 5,376,000.000 53,760,000

Opening Balance 1000 38,472.503 38,472,503 55,615.814 55,615,814 Units Sold during the period 1000 2,513.323 2,513,323 10,232.432 10,232,432 Units Repurchased during the period 1000 0.000 0 (27,375.743) (27,375,743)

Closing Balance 40,985.826 40,985,826 38,472.503 38,472,503

7.10.3 Fixed Pricing Option - Dividend Option (Weekly Option )


As on




March 31, 2008 Initial Capital Opening Balance 0.000 0.00 89.443 89,443Units Sold during the period 0.000 0.00 2.359 2,359Units Repurchased during the period 0.000 0.00 (91.802) (91,802)Closing Balance of Rs.1000 each 0.000 0.00 0.000 0.00

7.10.4 Fixed Pricing Option - Dividend Option (Monthly Option )


As on




March 31, 2008 Initial Capital

Opening Balance 34.651 34,651 77.519 77,519

Units Sold during the period 578.533 578533.00 2.066 2,066Units Repurchased during the period (100.000) (100000.00) (44.934) (44,934)Closing Balance of Rs.1000/- each. 513.184 513184.00 34.651 34,651

7.10.5 Variable Pricing Option – ( Growth Option )


As on




March 31, 2008

Initial Capital 1,986,915.353 1,986,915,353 1,986,915.353 1,986,915,353Opening Balance 679,796.046 679,796,046.00 870,107.097 870,107,097.00

Units Sold during the period 3,162,094.525 3,162,094,525.00 3,819,179.285 3,819,179,285.00Units Repurchased during the period (3,538,962.567) (3,538,962,567.00) (4,009,490.336)

(4,009,490,336.00)

Closing Balance of Rs.1000 each 302,928.004 302,928,004.00 679,796.046 679,796,046.00

7.10.6 Variable Pricing Option - Dividend Option ( Daily Dividend )


As on




March 31, 2008 Initial Capital 1,760,554.229 1,760,554,229 1,760,554.229 1,760,554,229Opening Balance 21,502.049 21,502,049 27,649.931 27,649,931Units Sold during the period 769,469.150 769,469,150 264,343.290 264,343,290Units Repurchased during the period (767,617.182) (767,617,182) (270,491.172) (270,491,172)Closing Balance of Rs.1000 each. 23,354.017 23,354,017 21,502.049 21,502,049

7.10.7 Variable Pricing Option - Dividend Option ( Weekly Option )


As on




March 31, 2008 Initial Capital 9,766.992 9,766,992 9,766.992 9,766,992 Opening Balance 619.158 619,158 1,288.709 1,288,709Units Sold during the period 627.468 627,468 2,232.553 2,232,553Units Repurchased during the period (639.479) (639,479) (2,902.104) (2,902,104)Closing Balance of Rs.1000 each 607.147 607,147 619.158 619,158

7.10.8 Variable Pricing Option - Dividend Option ( Monthly Option )


As on




March 31, 2008 Initial Capital 6,695.965 6,695,965 6,695.965 6,695,965 Opening Balance 4,020.355 4,020,355 2,394.844 2,394,844Units Sold during the period 908,305.929 908,305,929 21,782.554 21,782,554Units Repurchased during the period (112,743.110) (112,743,110) (20,157.043) (20,157,043)Closing Balance of Rs.1000 each. 799,583.174 799,583,174 4,020.355 4,020,355

7.11 The Fund has declared the following dividend per unit during the financial year. There was no Bonus declared during the year ended March 31, 2009.

2008-09 2007-08

Dividend declared on various dates on the face value of Rs.1000/- each

(**)

(*)

The Dividend per Unit disclosed above is cumulative for the period mentioned against each option.

( **) Option Face Value (Rs) Period Dividend per unit (Rs.)

Fixed Pricing Option – Daily Dividend Option

1000/- 01/04/2008 to 31/03/2009

88.66

Fixed Pricing Option – Monthly Dividend Option

1000/- 01/04/2008 to 31/03/2009

88.57

Variable Pricing Option- Daily Dividend Option

1000/- 01/04/2008 to 31/03/2009

90.72

Variable Pricing Option- Weekly Dividend Option

1000/- 01/04/2008 to 31/03/2009

90.66

Variable Pricing Option- 1000/- 01/04/2008 to 87.95

Monthly Dividend Option 31/03/2009 The Dividend Per Unit disclosed above is cumulative for the period mentioned against each option. (*)

Option Face Value (Rs) Period Dividend per unit (Rs.)

Fixed Pricing Option – Daily Dividend Option

1000/- 01/04/2007 to 31/03/2008

117.39

Fixed Pricing Option – Weekly Dividend Option

1000/- 01/04/2007 to 31/03/2008

55.44

Fixed Pricing Option – Monthly Dividend Option

1000/- 01/04/2007 to 31/03/2008

78.81

Variable Pricing Option- Daily Dividend Option

1000/- 01/04/2007 to 31/03/2008

120.18

Variable Pricing Option- Weekly Dividend Option

1000/- 01/04/2007 to 31/03/2008

105.14

Variable Pricing Option- Monthly Dividend Option

1000/- 01/04/2007 to 31/03/2008

120.92

The Dividend per Unit disclosed above is cumulative for the period mentioned against each option. 7.12 Investments made by the Schemes of Sahara Mutual Fund in Companies or their subsidiaries that have invested



Name of the Instrument Rating Quantity Mkt Value (Rs in lakhs)

% of Market Value

1. Debt Instruments

(a) Listed

Bonds / Floating Rate NCDs (7.30 %) 8.69

Power Finance Corporation Ltd AAA 100 1000.00

(b) Privately Placed / Unlisted

Floating Rate NCDs (1.46%) 1.74

Madras Cements Ltd 26/06/2009 ** P1+ 200000 200.00

2. Money Market Instruments (75.19%) 89.57

Commercial Paper

HDFC Bank Ltd CP 22/09/2009 ** P1+ 200 949.70

Certificate of Deposit

ICICI Bank Ltd CD - -16-Jun-09 ** A1+ 1500 1477.02

UCO Bank Ltd CD -01-Jun-2009 ** P1+ 1000 990.32

Allahabad Bank CD - 04-Aug-2009 ** P1+ 1000 980.02

Axis Bank Ltd CD-03.-Sep-.2009 ** P1+ 1000 955.88

IDBI Bank Ltd- CD - 22.Sep.2009 ** P1+ 1000 950.50

Corporation Bank CD - 03-Aug-09 ** A1+ 1000 966.29

Canara Bank CD -17-Sep-09.** P1+ 835 794.60

Federal Bank CD -12.Jun.2009 ** P1+ 491 483.63

Punjab National Bank CD-15-Jan-2010 ** P1+ 500 472.10

State Bank of Patiala CD - 07-April-2009 ** P1+ 468 467.54

Union Bank of India CD - 24-Dec-2009 ** P1+ 500 470.73

State Bank of Travancore CD- 21-Sep-2009 ** A1+ 363 345.07

Total 10303.39

Grand Total 209957 10503.39 100.00

* Thinly Traded / Non Traded Securities

7.14 Investments made by the scheme in Securities of Group Companies of the sponsor – NIL 7.15 Holdings over 25% of the NAV of the scheme:


Number of Investors 1 1

Percentage of holdings 81.28% 86.50%

7.16 Previous period figures have been reclassified/regrouped, wherever necessary, to conform to the current year’s

classification. As per our attached report of even date



1.We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Classic Fund (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us:





(S N Chaturvedi)


SAHARA CLASSIC FUND BALANCE SHEET AS AT MARCH 31, 2009


Investments 1

1,086,696

990,884

Deposits 2

-

-


287,435

26,918


-

-

Total Assets

1,374,131

1,017,802

LIABILITIES

Unit Capital 5

1,154,511

992,500


221,240

17,243


(1,620)

8,059

Total Liabilities

1,374,131


For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker A N Sridhar Fund Manager Fund Manager Place :Mumbai Date: 22/06/2009

SAHARA CLASSIC FUND REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule

For the year ended

March 31, 2009

For the period February

01 2008 to March 31 2008

(Rs) (Rs) INCOME

Dividend Income

-

-

Interest Income 8

115,770

17,712


64,680

- (Other than Inter Scheme Transfer / Sale)

Total Income 180,450 17,712 EXPENSES & LOSSES

Management Fees

1,137

164


135

16

Audit Fees

108

18


199

30

Custodian Fees

306

10


1,735

203

Insurance

64

13


295

119

Total Expenses

3,979

573


176,471

17,139


-

-


28,293

-


204,764


For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker A N Sridhar Fund Manager Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 1 Investments (Refer Note 7.14 of Schedule 10 for detailed Portfolio statement)

Equity Shares

-

-


1,086,696

990,884

1,086,696

990,884 SCHEDULE 2 Deposits


- -

-



(895)

942


234,278

24,552


54,052

1,424


-

-

287,435

26,918 SCHEDULE 4 Deferred Revenue Expenditure


-


-


-


Dividend

412,108

363,395 Dividend Option 41210.7630 units of Rs.10 each (For 2007- 08- 36339.4830 units of Rs.10 each)

Growth

742,403

629,106 Growth Option 74240.261 units of Rs.10 each For 2007- 08- 62910.552 units of Rs.10 each) Total

1,154,511 992,500

(Refer Note 7.10 of Schedule 10) SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 SCHEDULE 6 (Rs) (Rs) Reserves and Surplus Revenue Reserve


17,139 -


204,764

17,139


221,903



-


28,293

-


(28,293)

-


-



-

Additions During the year -

-


-



104

-


(767)

104


(663)

104

221,240

17,243 As at As at SCHEDULE 7 March 31, 2009 March 31, 2008 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

(2,012)

(412)


18 85


-

-


-

-


-

-


374 8,386


(1,620)


For the year

ended For the year



-

-

Fixed Deposit

-

-


110,017

14,568

Treasury Bills

2,777

-

Reverse Repo

2,976

3,144

115,770



-

-


-

-

Further Provision for Depreciation

-

-

SAHARA CLASSIC FUND Perspective Historical Per unit statistics


(Rs. Per

Unit) (Rs. Per

Unit) (a) Gross Income (i) Income other than Profit on sale of Investments 1.0028 0.1785 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments (iii) Income from Profit (net of Loss) on sale other 0.5602 0.0000 than Inter scheme (iv) Transfer to revenue account from past year's 0.0000 0.0000 reserve NA NA (b) Aggregate of expenses, write off, amortisation and charges 0.0345 0.0048 (c) Net Income 1.5285 0.1737

(d) Net unrealised appreciation/(dimunition) in value of Investments 0.00 0.00 (e) Net Asset Value Dividend Plan 11.9163 10.1737 Growth Plan 11.9164 10.1737 (f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 11.5588 0.0000 Fixed Pricing - Growth Plan 11.5589 0.0000 (ii) Lowest Fixed Pricing - Dividend Plan 9.8739 0.0000 Fixed Pricing - Growth Plan 9.8739 0.0000 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 12.0355 10.1254 Fixed Pricing - Growth Plan 12.0356 10.1737 (ii) Lowest Fixed Pricing - Dividend Plan 10.2811 10.0651 Fixed Pricing - Growth Plan 10.2811 10.0468 (h) Ratio of expenses to average daily net assets by Percentage 0.35% 0.08% (i) Ratio of income to average daily net assets by Percentage 15.88% 2.39% (excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annaulised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period

SCHEDULE: 10 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2009. 1. INTRODUCTION


Sahara Classic Fund (the “Scheme”) is an Open Ended Income Scheme of Sahara Mutual Fund (the “Fund”).The primary objective is generating returns by investing in debt instruments including money market instruments and also to invest in equity and equity related instruments to seek capital appreciation. The scheme has two Plans – (i) Growth Plan and (ii) Dividend Plan. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The new fund offer period of the scheme was from December 18, 2007 to January 16, 2008 and the scheme was reopen for continuous purchase and redemption at prevailing NAV from February 8, 2008.


Sahara Mutual Fund (SMF) has been established as a Trust in accordance with the Indian Trusts Act, 1882, and is sponsored by Sahara India Financial Corporation Limited (“SIFCL”). Sahara Asset Management Company Private Limited (“SAMCPL”), a company incorporated under the Companies Act, 1956, has been appointed as the Asset Management Company (“Investment Manager”) to Sahara Mutual Fund. The shareholding of Sahara Asset Management Company Private Limited as on March 31st, 2009 is as follows:


Sahara India Financial Corporation Limited Equity 48.64 %

Sahara India Corp Investment Limited Equity 17.53 %

Sahara Prime City Limited (formerly Sahara India Investment Corporation Limited ) Equity 17.53 %

Sahara Care Limited Equity 16.30 % Name of the Shareholder Type of Holdings Holding Sahara India Commercial Corporation Ltd Preference 90.32 % Sahara Care Ltd Preference 9.68 %

2 SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of Accounting







2.2.5 Bonus/Rights entitlements on equity holdings are recognized only when the original shares on which the entitlement accrues are traded on the Principal stock exchange on ex-bonus/ex-rights basis respectively



a. Investments which are traded on a stock exchange are valued at the last available price quoted at an appropriate stock exchange on the valuation date. b. If there is no quote on the valuation date, it is valued at the last available quoted price at an appropriate stock exchange not exceeding 15 days preceding the valuation date. c. Government Securities are valued at the price released by an Agency (CRISIL) approved by AMFI, on daily basis. d. Traded equity securities and warrants are valued at the last quoted price on the National Stock Exchange of India Limited (NSE). However, if the securities and warrants are not listed on NSE, the securities are valued at the price quoted at the exchange where it is principally traded. When on a particular valuation day, a security has not been traded on NSE but has been traded on another stock exchange, the value at which it is traded on that stock exchange is used provided it is not more than thirty days prior to the valuation date.

e. The Valuation of Rights shares until they are traded, is done as per the method given below:

Vr = n x (Pex – Pof)

m Where Vr = Value of rights n = no. of rights offered m = no. of original shares held Pex = Ex-rights price Pof = Rights Offer Price







e. Non-traded / thinly traded / privately placed equity securities including those not traded within thirty days are valued at fair value as per procedures determined by SAMCPL and approved by the Trustee in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India (SEBI) from time to time.






2.3.4 Unrealised Appreciation / Depreciation












Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options / Scheme, after an appropriate amount of the issue proceeds and redemption payout is credited or debited respectively to the Income equalization account. The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.

5. Income Equalisation Account`






Management Fees Management Fees has been computed at 0.10 % average net assets calculated on a daily basis.



Custodian Charges



the Income Tax Act, 1961. 7.3 Certain investments are registered in the name of the Fund without specific reference to the Scheme. As at March 31,

2009 the aggregate market value of securities under Sahara Classic Fund but held in the name of Sahara Mutual Fund is Rs. 234305.81



7.5 Transactions with Associates Brokerage / Commission on sale of units by the Scheme or by the Asset Management Company given to associates, pursuant to Regulation 25(8): Brokerage to SIFCL A/c CMSD (Associate) has been made for sale of units of the MF as given below:


Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07

7.6 Aggregate Value of purchases and sales of Investments during the year as a percentage of daily average net asset value; Purchases

Year Amount in Rupees % of Daily Average 2008-09 2,914,884/- 256.49 2007-08 1,977,740/- 266.58

Sales Year Amount in Rupees % of Daily Average

2008-09 2,819,072/- 248.06 2007-08 986,856/- 133.02

7.7 Load Charges



31-Mar -09 31-Mar-08

Scheme

Appreciation (Rs. In lakhs




Sahara Classic Fund

MMIs

-



15.88 % 2.39 %

Total Expenditure to average net assets calculated on a daily basis 0.35 % 0.077 % 7.10 Movement in Unit Capital



As on




March 31, 2008 Initial Capital 62,910.552 629,106 62,910.552 629,106Opening Balance 62,910.552 629,106 - - Units Sold during the year 30,563.067 305,631 62,910.552 629,106

Units Repurchased during the year (19,233.358) (192,334) 0.000 0Closing Balance 74,240.261 742,403 62,910.552 629,106 7.10.2 Dividend Option


As on




March 31, 2008 Initial Capital 36,339.483 363,395 36,339.483 363,395Opening Balance 36,339.483 363,395 - - Units Sold during the year 15,366.673 153,667 36,339.483 363,395Units Repurchased during the year (10,495.393) (104,954) 0.000 0Closing Balance 41,210.763 412,108 36,339.483 363,395

7.11 The Fund has declared NIL dividends during the financial year. (PY Nil) Further, there was no Bonus declared during

the year ended March 31, 2009 (PY:Nil). 7.12 Unclaimed Amounts ( beyond six months) :


Dividend (Rs) No of Investors


Sahara Classic Fund - - - - 7.13 Investments made by the Schemes of Sahara Mutual Fund in Companies or their subsidiaries that have invested


7.14 Portfolio Statement as on March 31, 2009 : Name of the Instrument Qty Mkt Value

( Rs. Lacs) % of Market Value

CERTIFICATE OF DEPOSITS (82.92%)

State Bank of Travancore mat 21st Sept 2009 ** 12 11.41

TOTAL 12 11.41 100.00 ** Thinly Traded/ Non Traded securities

7.15 Investments made by the scheme in Securities of Group Companies of the sponsor – NIL.

7.16 Holdings over 25% of the NAV of the scheme


Number of Investors Nil Nil Percentage of holdings N/A NA

As per our attached of even date

For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker A N Sridhar Fund Manager Fund Manager Place :Mumbai Date: 22/06/2009


1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Interval Fund – Quarterly Plan – Series 1 (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the period ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2.We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.




i). in case of Balance Sheet of the state of affairs of the scheme as at March 31, 2009 and ii). in case of the Revenue account, of the surplus for the period ended on that date.




(S N Chaturvedi) Partner


SAHARA INTERVAL FUND - QUARTERLY PLAN SERIES 1

BALANCE SHEET AS AT MARCH 31, 2009 Schedule As at March 31, 2009 ASSETS (Rs)

Investments 1

4,676,981

Deposits 2

-


40,210


-

Total Assets

4,717,191

LIABILITIES

Unit Capital 5

4,493,088


219,652


4,451

Total Liabilities



SAHARA INTERVAL FUND - QUARTERLY PLAN SERIES 1 REVENUE ACCOUNT FOR THE PERIOD 04 October, 2008 To March 31, 2009

Schedule

For the period October 04, 2008 to

March 31, 2009 (Rs) INCOME

Dividend Income

-

Interest Income 8

325,289



Total Income 325,289 EXPENSES & LOSSES

Management Fees

14,759


731

Audit Fees

1,663


-

Custodian Fees

1,049


525

Insurance

345


1,592

Total Expenses

20,664


304,625


-


5,867



For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at March 31, 2009 (Rs) SCHEDULE 1

Investments (Refer Note 7.14 of Schedule 10 for detailed Portfolio statement)

Equity Shares

-


4,676,981



-

-



4,254


19,961


-


15,995


-





-

SCHEDULE 5 Unit Capital

Dividend

852,297 Dividend Option 85229.7110 units of Rs.10 each

Growth


Total

4,493,088 (Refer Note 7.10 of Schedule 10) SCHEDULES FORMING PART OF THE BALANCE SHEET As at March 31, 2009 SCHEDULE 6 (Rs) Reserves and Surplus Revenue Reserve Balance as at beginning of the year -


310,492


310,492 Income Equalisation Reserve Balance as at beginning of the year -


5,867


(5,867)


- Unrealised Appreciation Reserve Balance as at beginning of the year - Additions During the year -


- Unit Premium Reserve Balance as at beginning of the year -


(90,840)


(90,840)

219,652 As at SCHEDULE 7 March 31, 2009 (Rs) Current Liabilities and Provisions

Sundry Creditors

4,087


313


-


-


-




For the period October 04, 2008 to

March 31, 2009 (Rs) SCHEDULE 8 Interest & Discount Income


-

Fixed Deposit

-


291,376

Treasury Bills

-

Reverse Repo

33,913



-


-


-

SAHARA INTERVAL FUND - QUARTER SERIES 1 Perspective Historical Per unit statistics

Particulars As at

31-Mar-09 (Rs. Per Unit) (a) Gross Income (i) Income other than Profit on sale of Investments 0.7240 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments (iii) Income from Profit (net of Loss) on sale other 0.0000 than Inter scheme (iv) Transfer to revenue account from past year's 0.0000 reserve (b) Aggregate of expenses, write off, amortisation and charges 0.0460 (c) Net Income 0.6780 (d) Net unrealised appreciation/(dimunition) in value of Investments 0.0000

(e) Net Asset Value Dividend Plan 10.4889 Growth Plan 10.4889 (f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 10.3840 Fixed Pricing - Growth Plan 10.3840 (ii) Lowest Fixed Pricing - Dividend Plan 9.9901 Fixed Pricing - Growth Plan 9.9901 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 10.4889 Fixed Pricing - Growth Plan 10.4889 (ii) Lowest Fixed Pricing - Dividend Plan 10.0000 Fixed Pricing - Growth Plan 10.0000 (h) Ratio of expenses to average daily net assets by Percentage 0.36% (i) Ratio of income to average daily net assets by Percentage 5.71% (excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annaulised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period



Sahara Interval Fund – Quarterly Plan – Series 1 (the “Scheme”) is a debt oriented interval fund of Sahara Mutual Fund (the “Fund”). The investment objective of the scheme is to generate returns with low volatility through a portfolio of debt and money market instruments with a provision to offer liquidity at periodic intervals. The scheme has two options – (i) Growth option and (ii) Dividend option. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The new fund offer period of the scheme was from 22/09/2008 to 26/09/2008.





Equity 17.53 %





































Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options /Scheme, after an appropriate amount of the issue proceeds and redemption payout is credited or debited respectively to the Income equalization account.





In line with SEBI circular no. MFD/CIR/9/120 /2000 dated November 24, 2000, the unclaimed redemption and dividend amounts may be deployed by the mutual funds in call money market or money market instruments only and the investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing Net Asset Value. After a period of three years, this amount can be transferred to a pool account and the investors can

claim the unclaimed redemption amount at NAV prevailing at the end of the third year. The income earned on such funds can be used for the purpose of investor education. The AMC should make continuous effort to remind the investors through letters to take their unclaimed amounts. Further, the investment management fee charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points.

7 NOTES ON ACCOUNTS





Custodian Charges




2009 the aggregate market value of securities under Sahara Interval fund but held in the name of Sahara Mutual Fund is Rs.19,963.28.






Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




1.90 0.01 0.85 3.10 0.01


Year Amount in Rupees % of Daily average 2008-09 17,201,300/- 301.74

Sales

Year Amount in Rupees % of Daily average 2008-09 12,524,319/- 301.74

7.7 Load Charges

Load charges are collected and reimbursed to the Asset Management Company for Selling and distribution expenses incurred by it on behalf of the scheme.


Asset Class 31-Mar-09



MMis -

-

Gov Securities -

- 7.9 Income and Expense Ratio

2008-09 Total Income (including net unrealized appreciation and net of loss on sale of investments) to average net assets calculated on a daily basis.

5.71%


0.36%


7.10.1 Growth Option Number of Units Amount (Rs)

As on


March 31, 2009 Initial Capital 557,722.938 5,577,229Opening Balance 0.000 0.00Units Sold during the year 654,056.467 6,540,565

Units Repurchased during the year (289,977.364) (2,899,774)Closing Balance 364,079.103 3,640,791 7.10.2 Dividend Option


As on


March 31, 2009 Initial Capital 264,875.405 2,648,754Opening Balance 0.000 0.00Units Sold during the year 290,985.307 2,909,853

Units Repurchased during the year (205,755.596) (2,057,556)Closing Balance 85,229.711 852,297

7.11 The Fund has not declared dividend during the financial year (PY: N/A) Further, there was no Bonus declared

during the year ended March 31, 2009 (PY: N/A). 7.12 Unclaimed Amounts ( beyond six months):

Unclaimed Redemption and Dividend amounts as of March 31, 2009 are given below: Scheme Name No of Investors Unclaimed

Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara Interval Fund - - - -


more than 5% of the net asset value of any scheme, pursuant to Regulation 25(11).Nil

7.14 Portfolio Statement as on March 31, 2009: Name of the Instrument Qty Mkt Value

( Rs. Lakhs) Percentage

1. Money Market Instruments (99.24 %)

Banks

Canara Bank CD mat 17/09/2009** 40 37.93 Federal Bank Ltd CD mat 12/06/2009 ** 9 8.84

Total 46.77 100.00

** Thinly Traded/ Non Traded securities.

7.15 Investments made by the scheme in Securities of Group Companies of the sponsor – NIL. 7.16 Holdings over 25% of the NAV of the scheme

Particulars As on March 31, 2009

Number of Investors Nil Percentage of holdings N/A

7.17 Previous year figures have not been given as the scheme was launched in the current year.

As per our attached report of even date For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker Fund Manager Place :Mumbai Date: 22/06/2009

AUDITORS’ REPORT TO THE TRUSTEES OF SAHARA MUTUAL FUND 1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Fixed Maturity Plan-395 Days (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.


4. According to the explanations given to us and read with point no. 8.3 of Schedule 10 to the Financial Statements, appropriate amounts have been transferred by the scheme to Unit Premium Reserve Account and Income Equalization Account the basis for which has been changed in the current year from Management estimates to the best practice followed by the Industry.









SAHARA FIXED MATURITY PLAN-395 DAYS BALANCE SHEET AS AT MARCH 31, 2009


Investments 1

-

44,490,681

Deposits 2

-

-


(262)

147,085


-

3,937

Total Assets

(262)


Unit Capital 5

-

40,205,000


(262)

4,440,310


-

(3,607)

Total Liabilities

(262)



SAHARA FIXED MATURITY PLAN-395 DAYS REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule

For the year ended March 31,

2009

For the year ended March 31,

2008 (Rs) (Rs) INCOME

Dividend Income

-

-

Interest Income 8

268,907

4,501,577


-

- (Other than Inter Scheme Transfer / Sale) Total Income 268,907 4,501,577 EXPENSES & LOSSES

Management Fees

2,576

40,908


87

640

Audit Fees

70

704

Legai & Profession Fee

128

1,202


3,939

69,544

Custodian Fees

540

7,738


490

7,914

Insurance

41

527


190

7,082

Others

181

Total Expenses

8,242

136,259


260,665

4,365,319


-

-


302

-


260,967


For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 1 Investments (Refer Note 8.14 of Schedule 10 for detailed Portfolio statement)

Equity Shares -

-

Certificate of Deposits -

44,490,681

-

44,490,681

SCHEDULE 2 Deposits


-

-

-

-



(262)

(12,011)

Reverse Repo arrangements -

95,140


-

63,956


-

-

(262)

147,085 SCHEDULE 4 Deferred Revenue Expenditure Incurred during the period 3,937 73,481 Less:- Amortised during the period 3,937 69,544


- 3,937 SCHEDULE 5 Unit Capital

Dividend

-

1,704,000 Dividend Option Nil units of Rs.10 each (For 2007-08 170400.000 units)

Growth

-

38,501,000 Growth Option Nil units of Rs.10 each (For 2007-08 3850100.000 units)

Total

-

40,205,000



4,481,118

115,800


260,967

4,365,319


4,742,085

4,481,118 Income Equalisation Reserve


-


302

-


(302)

-


-



-


-


-



(40,809)

-


(4,701,538)

(40,809)


(4,742,347)

(40,809)

(262)

4,440,310 As at As at SCHEDULE 7 March 31, 2009 March 31, 2008 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

-

(10,973)


-

3,775


-

-


-

-


-

300 Load charges payable to AMC

- 3,291


-

(3,607) SCHEDULES FORMING PART OF REVENUE ACCOUNT

For the year

ended For the year



-

-

Fixed Deposit

-

485,513


268,616

4,013,182

Treasury Bills

-

-

Reverse Repo

291

2,883

268,907

4,501,577 SCHEDULE 9 Provision for dimunition in value of Investments


-

-


-

-


-

- SCHEDULE: 10 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2009


Sahara Fixed Maturity Plan -395 days (the “Scheme”) is a close ended Income scheme of Sahara Mutual Fund (the “Fund”). The investment objective is to generate income by investing into debt and money market securities, normally maturing in line with the time profile of the scheme. The scheme has two options – (i) Growth option and (ii) Dividend option. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The new fund offer period of the scheme was from March 14, 2007 to March 21, 2007. The scheme matured on 22nd April 2008.


Sahara Mutual Fund (SMF) has been established as a Trust in accordance with the Indian Trusts Act, 1882, and is sponsored by Sahara India Financial Corporation Limited (“SIFCL”).

Sahara Asset Management Company Private Limited (“SAMCPL”), a company incorporated under the Companies Act, 1956, has been appointed as the Asset Management Company (“Investment Manager”) to Sahara Mutual Fund. The Shareholding of Sahara Asset Management Company Private Limited as on March 31, 2009 is as follows:

Name of the Shareholder Type of Holdings Holding Sahara India Financial Corporation Limited Equity 48.64 % Sahara India Corp Investment Limited Equity 17.53 % Sahara Prime City Limited (formerly Sahara India Investment Corporation Limited ) Equity 17.53 %

Sahara Care Limited Equity 16.30 % Name of the Shareholder Type of Holdings Holding Sahara India Commercial Corporation Ltd Preference 90.32 % Sahara Care Ltd Preference 9.68 %





i. Purchase and sale of investments are accounted on trade dates at price including / net of brokerage and other charges. Stamp duty is accounted as an expense when paid for.

ii. Profit or loss on sale of investments is determined on the respective trade date by adopting the “Weighted Average Cost” method.

iii. Primary Market Investments are recognized on the basis of allotment advice.

iv. Front end fees on privately placed debentures have been adjusted to the cost of investments.



1. Investments which are traded on a stock exchange are valued at the last available price quoted at an appropriate stock exchange on the valuation date.

2. If there is no quote on the valuation date, it is valued at the last available quoted price at an appropriate stock exchange not exceeding 15 days preceding the valuation date.

3. Government Securities are valued at the price released by an Agency (CRISIL) approved by AMFI, on daily basis.







i) Money Market Instruments are valued at cost plus accrued interest.

ii) Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.

iii) Traded treasury bills, certificate of deposits and commercial paper are valued at the yield at which they are currently traded. Non-traded treasury bills, certificate of deposits and commercial paper including those not traded for a period of seven days are valued at cost plus accrued interest.

iv) Investments in mutual fund schemes are valued based on the net asset value of the respective schemes as on the valuation date.












New Fund Offer expenses comprise those costs directly associated with the issue of units of the scheme and include brokerage / agent’s commission, advertising and marketing costs, registrar expenses and printing and dispatch costs. In accordance with the offer document of the scheme, such costs have been charged to the extent of 0.18 % of

amount collected in initial offer and are being amortized over a period of the period of the plan from the date of allotment.


Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options/Scheme, after an appropriate amount of the issue proceeds and redemption payout is credited or debited respectively to the Income equalization account. The Unit Premium reserve account is available for distribution of dividend except to the extent it is represented by unrealized net appreciation in value of investments.







Management Fees Management Fees (inclusive of service tax) has been computed at 0.10% on average net assets calculated on a daily basis.



Custodian Charges


8.2 Provision for tax has not been made since the income of the scheme is exempt from tax under section 10(23D) of the Income Tax Act, 1961. 8.3 During the current year , a new software was installed for NAV Accounting that has enabled the

transfer of appropriate amounts to Unit Premium Reserve Account and Income Equalization Account , based on the total distributable surplus (excluding the unrealized appreciation) on a daily basis , which is in line with the best practices in the Industry. Hitherto such transfers were done by the management on an estimate basis. However, this has no impact on the Net Asset Value of the scheme.






Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund





Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07

8.6 Aggregate Value of purchases and sales of Investments during the year as a percentage of daily average net asset value;

Purchases

Year Amount in Rupees % of Daily average 2008-09 N/A N/A 2007-08 94,790,929 221.00

Sales

Year Amount in Rupees % of Daily average 2008-09 44,490,681 1741.307 2007-08 90,879,734 211.88

8.7 Load Charges


8.8 Aggregate Appreciation and Depreciation in the value of Investments:






MMis - - - - 8.9 Income and Expense Ratio


10.52% 10.50%

Total Expenditure to average net assets calculated on a daily basis 0.16% 0.16%



As on




March 31, 2008

Initial Capital 2,881,100.000 28,811,000 2,881,100.000 28,811,000Opening Balance 3,850,100.000 38,501,000 2,881,100.000 28,811,000Units Sold during the year 0.000 0.00 1,000,000.000 10,000,000Units Repurchased during the year (3,850,100.000) (38,501,000) (31,000.000) (310,000)Closing Balance 0.000 0.00 3,850,100.000 38,501,000 8.10.2 Dividend Option


As on




March 31, 2008 Initial Capital 1,190,400.000 11,904,000 1,190,400.000 11,904,000Opening Balance 170,400.000 1,704,000 1,190,400.000 11,904,000Units Sold during the year 0.000 0.00 - -Units Repurchased during the year (170,400.000) (1,704,000) (1,020,000.000) (10,200,000)Closing Balance 0.000 0.00 (170,400.000) (1,704,000)

8.11 The Fund has not declared dividend during the financial year (PY: Nil) Further, there was no Bonus declared during

the year ended March 31, 2009(PY: Nil). 8.12 Unclaimed Amounts (beyond six months):


Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara FMP 395 Days - - - -




(Rs. in Lakhs) Percentage

Money Market Instruments Nil N/A N/A



Number of Investors Nil Nil Percentage of holdings N/A N/A

8.17 Previous year figures have been reclassified/regrouped, wherever necessary, to conform to

the current year’s classification.




1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Fixed Maturity Plan- 395 Days Series 2 (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the period ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit. The Balance Sheet and the Revenue Account referred to above are in agreement with the books of account of the Scheme. 4. In our opinion and to the best of our information and according to the explanations given to us:








SAHARA FIXED MATURITY PLAN 395 DAYS SERIES 2


Investments 1 -

91,440

Deposits 2 -

-

Other Current Assets 3 157,810

54,323

Deferred Revenue Expenditure 4 -

-

Total Assets 157,810

145,763

LIABILITIES

Unit Capital 5

145,000 145,000


14,196 749


(1,386) 14

Total Liabilities 157,810

145,763

NET ASSET VALUE Net Asset Value per unit (Rs.) i) Dividend 10.9791 10.0517 ii) Growth 10.9790 10.0516 Significant Accounting Policies and Notes to the accounts 10 Schedules 1 to 7 and 10 form an integral part of the Balance Sheet As per our attached report of even date


SAHARA FIXED MATURITY PLAN 395 DAYS SERIES 2 REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule

For the year ended March

31, 2009

For the period March 10, 2008 to March 31,


Dividend Income

- -

Interest Income 8

13,691 763


- -

(Other than Inter Scheme Transfer / Sale) Total Income 13,691 763 EXPENSES & LOSSES Management Fees

153 9


1

1

Audit Fees

-

1

Legal & Profession fees

1

2

Custodian Fees

2

-


86

-

Insurance

-

1


1

-

Total Expenses

244

14


13,447

749


-

-


-

-


13,447

749 Significant Accounting Policies and Notes to the accounts 10 Schedules 8 to 10 form an integral part of the Revenue Account As per our attached report of even date


Equity Shares

-

-


-

91,440

-



-

-

-



(845)

602


158,637

53,197


18

524


-

-

157,810


Incurred during the period

-

-

Less:- Amortised during the period

-

-


-


Dividend

15,000

15,000 Dividend Option 1500.000 units of Rs.10 each

Growth

130,000

130,000 Growth Option 13000.000 units of Rs.10 each

Total

145,000

145,000 (Refer Note 8.10 of Schedule 10)

SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 SCHEDULE 6 (Rs) (Rs) Reserves and Surplus Revenue Reserve


749

-


13,447

749


14,196

749 Income Equalisation Reserve


-


-

Transferred to Revenue Account -

-


-



-


-


-



-


-


-

-

14,196

749 As at As at SCHEDULE 7 March 31, 2009 March 31, 2008 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

(1,388)

5


2

9


-

-


-

-


-

-


-


(1,386) 14

SCHEDULES FORMING PART OF REVENUE ACCOUNT

For the year

ended For the year



-

-

Fixed Deposit

-

-


10,072

524

Treasury Bills

-

-

Reverse Repo

3,619

239

13,691

763 SCHEDULE 9 Provision for dimunition in value of investments


-

-


-

-


-

-

SAHARA FIXED MATURITY PLAN 395 DAYS SERIES 2



(Rs. Per

Unit) (Rs. Per

Unit) (a) Gross Income (i) Income other than Profit on sale of Investments 0.9442 0.0526 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments (iii) Income from Profit (net of Loss) on sale other 0.0000 0.0000 than Inter scheme (iv) Transfer to revenue account from past year's 0.0000 0.0000 reserve NA NA (b) Aggregate of expenses, write off, amortisation and charges 0.0168 0.0010

(c) Net Income 0.9274 0.0516 (d) Net unrealised appreciation/(dimunition) in value of Investments 0.00 0.0000 (e) Net Asset Value Dividend Plan 10.9791 10.0517 Growth Plan 10.9790 10.0516 (f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 10.7595 10.0517 Fixed Pricing - Growth Plan 10.7594 10.0516 (ii) Lowest Fixed Pricing - Dividend Plan 9.8556 10.0000 Fixed Pricing - Growth Plan 9.8555 10.0000 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 10.9791 10.0517 Fixed Pricing - Growth Plan 10.9790 10.0516 (ii) Lowest Fixed Pricing - Dividend Plan 10.0567 10.0000 Fixed Pricing - Growth Plan 10.0566 10.0000 (h) Ratio of expenses to average daily net assets by Percentage 0.16% 0.01% (i) Ratio of income to average daily net assets by Percentage 8.99% 0.55%

(excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annualized **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period


6 INTRODUCTION 1.1 About the Scheme

Sahara Fixed Maturity Plan -395 days Series 2 (the “Scheme”) is a close ended Income Scheme of Sahara Mutual Fund (the “Fund”). The investment objective is to generate income by investing into debt and money market securities, normally maturing in line with the time profile of the scheme. The scheme has two options – (i) Growth option and (ii) Dividend option. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The new fund offer period of the scheme was from 30/01/2008 to 05/03/2008.



Name of the Shareholder Type of Holdings

Holding

Sahara India Financial Corporation Limited Equity 48.64 % Sahara India Corp Investment Limited Equity 17.53 % Sahara Prime City Limited (formerly Sahara India Investment Corporation Limited )

Equity 17.53 %


Name of the Shareholder Type of Holdings

Holding

Sahara India Commercial Corporation Ltd Preference 90.32 % Sahara Care Ltd Preference 9.68 %











Investments which are traded on a stock exchange are valued at the last available price quoted at an appropriate stock exchange on the valuation date.

If there is no quote on the valuation date, it is valued at the last available quoted price at an appropriate stock exchange not exceeding 15 days preceding the valuation date.

Government Securities are valued at the price released by an Agency (CRISIL) approved by AMFI, on daily basis.


1. A debt security (other than a Government security) is considered as a thinly traded security if on the valuation date, there are no individual trades in that security in marketable lots (currently Rs. 5 Crores) on the principal stock exchange or any other stock exchange.

2. Investments not traded on any stock exchange for a prescribed period prior to the valuation date are treated as

non-traded.

3. Valuation of Unlisted/Non-traded/Thinly Traded debt instruments maturing within 182 days as at valuation date are valued at cost plus difference between the redemption value and the cost spread uniformly over the remaining maturity period of instrument.

4. Unlisted/Non traded/Thinly traded debt securities with over 182 days to maturity are valued in good faith by the

Investment manager on the basis of valuation principles laid down by SEBI.


i. Money Market Instruments are valued at cost plus accrued interest. ii. Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the

date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.

iii. Traded treasury bills, certificate of deposits and commercial paper are valued at the yield at which they are

currently traded. Non-traded treasury bills, certificate of deposits and commercial paper including those not traded for a period of seven days are valued at cost plus accrued interest.

iv. Investments in mutual fund schemes are valued based on the net asset value of the respective schemes as on the

valuation date. 2.3.4 Unrealised Appreciation/Depreciation

In accordance with the Guidance Note on Accounting for Investments in the Financial Statements of Mutual Funds issued by the Institute of Chartered Accountants of India, the unrealized appreciation determined separately for each individual investment is directly transferred to the “Unrealised Appreciation Reserve Account” i.e. without routing it through the revenue account. The provision for depreciation in value of investments determined separately for each individual investment is recognized in the revenue account. The loss on investments sold / transferred during the year is charged to revenue account, instead of being first adjusted against the provision for depreciation, if already created in the prior year, as recommended by the said Guidance Note. However, this departure from the Guidance Note does not have any impact on the Scheme’s net assets or results for the year.


2.4.1 Income and Expenses are recognized on accrual basis. 2.4.2 Interest on funds invested in short-term deposits with scheduled commercial banks is recognized on accrual basis. 2.4.3 Interest on Debentures, Government of India securities and Money Market Instruments are recognized on accrual

basis 2.4.4 Proportionate realized gains on investments out of sales / repurchase proceeds at the time of sale / repurchase of

units are transferred to revenue Account from Unit Premium Reserve. 3. Net Asset Value for Growth / Dividend Options:



New Fund Offer expenses comprise those costs directly associated with the issue of units of the scheme and include brokerage / agent’s commission, advertising and marketing costs, registrar expenses and printing and dispatch costs. Such New fund offer expenses incurred have been borne by the AMC and not charged to the Plan.







8 . NOTES ON ACCOUNTS


Management Fees Management Fees (inclusive of service tax) has been computed at 0.10% on average net assets calculated on a daily basis.



Custodian Charges




2009 the aggregate market value of securities under Sahara Fixed Maturity Plan -395 days Series 2 but held in the name of Sahara Mutual Fund is Rs.158,655.51.






Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.16


Fund Classic Fund





Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07


Year Amount in Rupees % of Daily average 2008-09 195719/- 128.45 2007-08 91440/- 65.88

Sales Year Amount in Rupees % of Daily average

2008-09 287158/- 188.47 2007-08 NA NA

8.7 Load Charges








MMis -

- -



8.99 % 0.55 %


0.16 % 0.010 %




As on




March 31, 2008 Initial Capital 13,000.000 130,000 13,000.000 130,000Opening Balance 13,000.000 130,000 - - Units Sold during the year 0.000 0.00 13,000.000 130,000

Units Repurchased during the year 0.000 0.00 0.000 0.00Closing Balance 13,000.000 130,000 13,000.000 130,000 8.10.2 Dividend Option


As on





Units Repurchased during the year 0.00 0.00 0.000 0.00Closing Balance 1,500.000 15,000 1,500.000 15,000


the year ended March 31, 2009 (PY: Nil). 8.12 Unclaimed Amounts (beyond six months):

Unclaimed Redemption and Dividend amounts as of March 31, 2009 are given below: Scheme Name No of Investors Unclaimed No of Unclaimed

Dividend (Rs) Investors Redemption (Rs) Sahara FMP 395 Days Sr 2

- - - -


more than 5% of the net asset value of any scheme, pursuant to Regulation 25(11). Nil 8.14 Portfolio Statement as on March 31, 2009:

Name of the Instrument Qty Mkt Value ( Rs. Lakhs)

Percentage (%)

Net Current Assets 1.59 100.00

Total 1.59 100.00






1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Fixed Maturity Plan- 395 Days Series 3 (the Scheme”) as at March 31, 2009, and the related Revenue Account for the period ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards







5. The Balance Sheet and the Revenue Account together with the notes thereon, have been prepared in accordance with

the accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable.

6. The methods used to value non-traded/thinly traded securities as at March 31, 2009 as determined by the

Management under procedures approved by the Trustees of Sahara Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds, issued by the Securities and Exchange Board of India, are fair and reasonable.





SAHARA FIXED MATURITY PLAN 395 DAYS SERIES 3 BALANCE SHEET AS AT MARCH 31, 2009


Investments 1

3,192,653

2,930,863

Deposits 2

-

-


90,082

71,202


-

-

Total Assets

3,282,735

3,002,066

LIABILITIES

Unit Capital 5

2,983,074

2,988,074


300,711

13,823


(1,050)

168

Total Liabilities

3,282,735



SAHARA FIXED MATURITY PLAN 395 DAYS SERIES 3 REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule

For the year ended March 31

2009



Dividend Income

- -

Interest Income 8

291,250 13,991


- -

(Other than Inter Scheme Transfer / Sale) Total Income 291,250 13,991

EXPENSES & LOSSES

Management Fees

2,399

94


80

5

Audit Fees

64

5


118

9


-

-

Custodian Fees

365

2


1,054

-

Insurance

38

4


174

49

Total Expenses

4,292

168


286,958

13,823 Less : Provision for dimunition in value of investments 9

-

-


-

-


286,958


For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 (Rs) (Rs) SCHEDULE 1 Investments

(Refer Note 8.14 of Schedule 10 for detailed Portfolio statement)

Equity Shares -

-


3,192,653

2,930,863

3,192,653



-

-

-



(273)

911


86,147

58,312


4,208

11,979


-

-

90,082



-


-


-


Dividend

65,000

70,000 Dividend Option 6500.000 units of Rs.10 each (For 2007-2008- - 7000.000 units of Rs.10 each)

Growth

2,918,074

2,918,074

Growth Option 291807.4290 units of Rs.10 each (Previous Year 291807.4290 units of Rs.10 each)

Total

2,983,074

2,988,074 (Refer Note 8.10 of Schedule 10) SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 SCHEDULE 6 (Rs) (Rs) Reserves and Surplus Revenue Reserve


13,823


286,958

13,823


300,781





Balance as at end of the year -

-

Unrealised Appreciation Reserve



Balance as at end of the year -

-

Unit Premium Reserve



(70)


(70) -

300,711 13,823 As at As at SCHEDULE 7 March 31, 2009 March 31, 2008 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

(1,185) 74


34 94


-

- Contract for purchase of Investments

- -


-

-


101


(1,050)


For the year

ended For the year



-

-

Fixed Deposit

-

-


287,316

11,979

Treasury Bills

-

-

Reverse Repo

3,934

2,012

291,250



-

-


-

-


-

-

SAHARA FIXED MATURITY PLAN 395 DAYS SERIES 3 Perspective Historical Per unit statistics

Particulars As at As at

31-Mar-09 31-Mar-08

(Rs. Per

Unit) (Rs. Per

Unit) (a) Gross Income (i) Income other than Profit on sale of Investments 0.9763 0.0468 (ii) Income from Profit (net of loss) on inter-scheme sales/ transfer of Investments (iii) Income from Profit (net of Loss) on sale other 0.0000 0.0000 than Inter scheme

(iv) Transfer to revenue account from past year's 0.0000 0.0000 reserve NA NA (b) Aggregate of expenses, write off, amortisation and charges 0.0144 0.0006 (c) Net Income 0.9620 0.0463 (d) Net unrealised appreciation/(dimunition) in value of Investments 0.00 0.00 (e) Net Asset Value Dividend Plan 11.0069 10.0462 Growth Plan 11.0081 10.0463 (f) Repurchase Price during the year** (i) Highest Fixed Pricing - Dividend Plan 10.7863 10.0462 Fixed Pricing - Growth Plan 10.7879 10.0463 (ii) Lowest Fixed Pricing - Dividend Plan 9.8505 10.0000 Fixed Pricing - Growth Plan 9.8506 10.0000 (g) Resale Price during the year** (i) Highest Fixed Pricing - Dividend Plan 11.0069 10.0462 Fixed Pricing - Growth Plan 11.0081 10.0463 (ii) Lowest Fixed Pricing - Dividend Plan 10.0515 10.0000 Fixed Pricing - Growth Plan 10.0516 10.0000 (h) Ratio of expenses to average daily net assets by Percentage 0.14% 0.01% (i) Ratio of income to average daily net assets by Percentage 9.27% 0.67% (excluding transfer to revenue account from past year's reserve but including net change in unrealized appreciation / depreciation in value of Investments and adjusted for net loss on sale / redemption of investments) *Annaulised **Based on the maximum load during the year Per unit calculations based on number of units in issue at the end of the period



Sahara Fixed Maturity Plan -395 days Series 3 (the “Scheme”) is a close ended Income Scheme of Sahara Mutual Fund (the “Fund”). The investment objective is to generate income by investing into debt and money market securities, normally maturing in line with the time profile of the scheme. The scheme has two options – (i) Growth option and (ii) Dividend option. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The new fund offer period of the scheme was from 30/01/2008 to 13/03/2008.




Equity 17.53 %













a Investments which are traded on a stock exchange are valued at the last available price quoted at an appropriate stock exchange on the valuation date.
















2.4.1 Income and Expenses are recognized on accrual basis. 2.4.2 Interest on funds invested in short-term deposits with scheduled commercial banks is recognized on accrual basis. 2.4.3 Interest on Debentures, Government of India securities and Money Market Instruments are recognized on accrual

basis 2.4.4 Proportionate realized gains on investments out of sales / repurchase proceeds at the time of sale / repurchase of

units are transferred to revenue Account from Unit Premium Reserve.




New Fund Offer expenses comprise those costs directly associated with the issue of units of the scheme and include brokerage / agent’s commission, advertising and marketing costs, registrar expenses and printing and dispatch costs. Such New fund offer expenses incurred have been borne by the AMC and not charged to the Plan.







8.NOTES ON ACCOUNTS

8.1 Management Fees, Trusteeship Fees, Custodian Fees Management Fees Management Fees (inclusive of service tax) has been computed at 0.076 % on average net assets calculated on a daily basis.






2009 the aggregate market value of securities under Sahara Fixed Maturity Plan -395 days Series 3 but held in the name of Sahara Mutual Fund is Rs.86,157.29.



8.5 Transactions with Associates Brokerage / Commission on sale of units by the Scheme or by the Asset Management Company given to associates, pursuant to Regulation 25(8): Brokerage to SIFCL A/c CMSD (associate) has been made for sale of units of the MF as given below:


Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund





Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07 8.6 Aggregate Value of purchases and sales of Investments during the year as a percentage of daily average net asset value; Purchases

Year Amount in Rupees % of Daily average 2008-09 6,366,692/- 202.56 2007-08 2,930,863/- 139.69

Sales Year Amount in Rupees % of Daily average

2008-09 6,104,903/- 194.23 2007-08 NA NA

8.7 Load Charges Load charges are collected and reimbursed to the Asset Management Company for Selling and distribution expenses incurred by it on behalf of the scheme.







MMis -

- -



9.27 % 0.67 %


0.14 % 0.008 %



As on




March 31, 2008 Initial Capital 291,807.429 2,918,074 291,807.429 2,918,074Opening Balance 291,807.429 2,918,074 - - Units Sold during the year 0.000 0.00 291,807.429 2,918,074

Units Repurchased during the year 0.000 0.00 0.000 0.000Closing Balance 291,807.429 2,918,074 291,807.429 2,918,074 8.10.2 Dividend Option


As on




March 31, 2008

Initial Capital 7,000.000 70,000 7,000.000 70,000Opening Balance 7,000.000 70,000 - - Units Sold during the year 0.000 0.00 7,000.000 70,000

Units Repurchased during the year (500.000) (5,000) 0.000 0.00Closing Balance 6,500.000 65,000 7,000.000 70,000


the year ended March 31, 2009(PY: Nil). 8.12 Unclaimed Amounts ( beyond six months):


Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara FMP 395 Days Sr 3

- - - -


more than 5% of the net asset value of any scheme, pursuant to Regulation 25(11).Nil


( Rs. Lacs) Percentage

(%)

1. Money Market Instruments (97.35 %)

Banks State Bank of Patiala CD mat 7/04/2009**

32 31.97 100.00

Total 31.97 100.00 ** Thinly Traded/ Non Traded securities.







1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Fixed Maturity Plan- 3 Months Series 3 (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the period ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit.











(S N Chaturvedi) Partner


SAHARA FIXED MATURITY PLAN - 3 MONTHS SERIES 3


Investments 1

-

83,501,218

Deposits 2

-

-


2,079

652,468


-

14,882

Total Assets

2,079

84,168,568

LIABILITIES

Unit Capital 5

-

83,565,388


(543)

593,543


2,622

9,637

Total Liabilities

2,079

84,168,568 NET ASSET VALUE Net Asset Value per unit (Rs.)

i) Dividend 10.2348

10.0708

ii) Growth 10.2356

10.0710 Significant Accounting Policies and Notes to the accounts 10 Schedules 1 to 7 and 10 form an integral part of the Balance Sheet As per our attached report of even date


SAHARA FIXED MATURITY PLAN - 3 MONTHS SERIES 3

REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule

For the year ended March 31

2009



Dividend Income

-

-

Interest Income 8

1,415,535

609,133


(24)


Total Income 1,415,511 609,133 EXPENSES & LOSSES

Management Fees

15,377

5,845


865

243

Audit Fees

692

267

Legal & Profession Fees

1,275

457


15,111

5,724

Custodian Fees

4,639

144


819

-

Insurance

408

200


1,883

2,711

Total Expenses

41,069

15,590


1,374,442

593,543


-

-


-

-


1,374,442


For Chaturvedi & Co. For Sahara Asset Management Company Private Limited For Sahara Mutual Fund Chartered Accountants S N Chaturvedi C K Kamdar O P Srivastava Justice S Mohan Amitabha Ghosh Partner Director Director Trustee Trustee Naresh Kumar Garg Chief Executive Officer Devesh Thacker Fund Manager Place :Mumbai Date: 22/06/2009 SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008

(Rs) (Rs) SCHEDULE 1 Investments (Refer Note 8.13 of Schedule 10 for detailed Portfolio statement)

Equity Shares -

-


-

83,501,218

-



- -

-

-



2,079

972


-

47,059


-

604,437


-

-

2,079


Incurred during the period 14,882

20,606

Less:- Amortised during the period 14,882

5,724


- 14,882 SCHEDULE 5 Unit Capital

Dividend

-

3,423,805


Growth

-


Total -

83,565,388



593,543

-


1,374,442

593,54

3


1,967,985



-


-


-


-



-


-


-



-


(1,968,528

)

-


(1,968,528)

-

(543)

593,543 As at As at SCHEDULE 7 March 31, 2009 March 31, 2008 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

2,622 3,792


- 5,845


-

-


-

-


-

-


-


2,622

9,637

SCHEDULES FORMING PART OF REVENUE ACCOUNT For the year

ended For the year

ended March 31, 2009 March 31, 2008 SCHEDULE 8 (Rs) (Rs) Interest & Discount Income


-

-

Fixed Deposit

-

-


1,366,875

604,437

Treasury Bills

-

-

Reverse Repo

48,660

4,696

1,415,535



- -


- -


-

- SCHEDULE: 10 ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2009


Sahara Fixed Maturity Plan -3 months Series 3 (the “Scheme”) is a close ended Income Scheme of Sahara Mutual Fund (the “Fund”). The investment objective is to generate income by investing into debt and money market securities, normally maturing in line with the time profile of the scheme. The scheme has two options – (i) Growth option and (ii) Dividend option. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The new fund offer period of the scheme was from 30/01/2008 to 04/03/2008. The scheme matured on 5TH June 2008.




Equity 17.53 %





The Scheme maintains its books of account on an accrual basis. These financial statements have been prepared in accordance with the Accounting Policies and Standards specified in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, (the “Regulation”), and amendments thereto, as applicable. 2.2 Accounting for Investments











A. A debt security (other than a Government security) is considered as a thinly traded security if on the valuation date, there are no individual trades in that security in marketable lots (currently Rs. 5 Crores) on the principal stock exchange or any other stock exchange.

B .Investments not traded on any stock exchange for a prescribed period prior to the valuation date are treated as non-traded.

C .Valuation of Unlisted/Non-traded/Thinly Traded debt instruments maturing within 182 days as at valuation date are valued at cost plus difference between the redemption value and the cost spread uniformly over the remaining maturity period of instrument.

D. Unlisted/Non traded/Thinly traded debt securities with over 182 days to maturity are valued in good faith by the Investment manager on the basis of valuation principles laid down by SEBI.


i. Money Market Instruments are valued at cost plus accrued interest.

ii. Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.

iii. Traded treasury bills, certificate of deposits and commercial paper are valued at the yield at which they are currently traded. Non-traded treasury bills, certificate of deposits and commercial paper including those not traded for a period of seven days are valued at cost plus accrued interest.

iv. Investments in mutual fund schemes are valued based on the net asset value of the respective schemes as on the valuation date.












New Fund Offer expenses comprise those costs directly associated with the issue of units of the scheme and include brokerage / agent’s commission, advertising and marketing costs, registrar expenses and printing and dispatch costs. In accordance with the offer document of the scheme, such costs have been charged to the extent of 0.02 % of amount collected in initial offer and was amortized over a period of the period of the plan from the date of allotment.









Management Fees Management Fees (inclusive of service tax) has been computed at 0.10 % on average net assets calculated on a daily basis. Trusteeship Fees & Expenses


Custodian Charges



Income Tax Act, 1961. 8.3 Transactions with Brokers in excess of 5% or more of the aggregate purchases and sale of securities made by the





Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07


Year Amount in Rupees % of Daily average 2008-09 134,150,794/- 887.49 2007-08 83,501,218/- 111.96

Sales

Year Amount in Rupees % of Daily average 2008-09 217,652,012/- 1439.90 2007-08 NIL NA

8.6 Load Charges








MMis -

- - - 8.8 Income and Expense Ratio


9.36% 0.82%

Total Expenditure ( excluding deferred revenue expenditure) to average net assets calculated on a daily basis

0.17% 0.013%


8.9.1 Growth Option


As on




March 31, 2008 Initial Capital 80,14,158.312 80,141,583 8,014,158.312 80,141,583Opening Balance 80,14,158.312 80,141,583 - - Units Sold during the year 0.000 0 8,014,158.312 80,141,583

Units Repurchased during the year (8,014,158.312) (80,141,583) 0.000 0Closing Balance 0.000 0 8,014,158.312 80,141,583 8.9.2 Dividend Option


As on




March 31, 2008 Initial Capital 342,380.470 3,423,805 342,380.470 3,423,805

Opening Balance 342,380.470 3,423,805 - - Units Sold during the year 0.000 0 342,380.470 3,423,805

Units Repurchased during the year (342,380.470) (3,423,805) 0.000 0Closing Balance 0.000 0 342,380.470 3,423,805



Unclaimed Redemption and Dividend amounts as of March 31, 2009 are given below: Scheme Name No of

Investors Unclaimed

Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara FMP 3 months Sr 3 - - - -




( Rs. Lacs) Percentage

(%)

Money Market Instruments Nil N/A N/A 8.14 Investments made by the scheme in Securities of Group Companies of the sponsor – NIL. 8.15 Holdings over 25% of the NAV of the scheme



8.16 Previous year figures have been reclassified/regrouped, wherever necessary, to conform to the current year’s classification. As per our attached report of even date.



1. We have audited the Balance Sheet of Sahara Mutual Fund – Sahara Fixed Maturity Plan- 3 Months Series 4 (the “Scheme”) as at March 31, 2009, and the related Revenue Account for the period ended on that date, annexed thereto. These financial statements are a responsibility of the Trustees of Sahara Mutual Fund and the management of Sahara Asset Management Company Private Limited (the “Management”). Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.










SAHARA FIXED MATURITY PLAN - 3 Months Series 4


Investments 1

-

589,885

Deposits 2

-

-


(1,287)

8,477


-

119

Total Assets

(1,287)

598,481 LIABILITIES

Unit Capital 5

-

595,949


1

2,510


(1,288)

22

Total Liabilities

(1,287)

598,481 NET ASSET VALUE Net Asset Value per unit (Rs.) i) Dividend 10.2235 10.0421 ii) Growth 10.2234 10.0421 Significant Accounting Policies and Notes to the accounts 10 Schedules 1 to 7 and 10 form an integral part of the Balance Sheet

As per our attached report of even date.


SAHARA FIXED MATURITY PLAN - 3 Months Series 4 REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

Schedule For the period ended

March 31, 2009



Dividend Income

- -

Interest Income 8

10,800 2,592

Profit on Sale / Redemption of Investments (Net) -

-

(Other than Inter Scheme Transfer / Sale)

Total Income 10,800 2,592 EXPENSES & LOSSES

Management Fees

150

36


1

1

Audit Fees -

1


114

28

Custodian Fees

3

1


71

13

Insurance

0

1


2

-

Others

6

Total Expenses

347

82


10,453

2,510


-

-


-

-


10,453




Equity Shares

-

-


-

589,885

-



- -

-

-



(1,287)

953


-

5,115


-

2,408


-

-

(1,287)

8,477 SCHEDULE 4 Deferred Revenue Expenditure Incurred during the period 119 147

Less:- Amortised during the period 119

28


- 119 SCHEDULE 5 Unit Capital

Dividend

- 25,000


Growth

-

570,949 Growth Option 57094.8770 units of Rs.10 each

Total

-

595,949 (Refer Note 8.9 of Schedule 10)

SCHEDULES FORMING PART OF THE BALANCE SHEET As at As at March 31, 2009 March 31, 2008 SCHEDULE 6 (Rs) (Rs) Reserves and Surplus Revenue Reserve


2,510 -


10,453

2,510


12,963 2,510

Income Equalisation Reserve

Balance as at beginning of the year - -


-


-


-



-


-


-



-


(12,962)

-


(12,962)

-

1

2,510

As at As at SCHEDULE 7 March 31, 2009 March 31, 2008 (Rs) (Rs) Current Liabilities and Provisions

Sundry Creditors

(1,293) (14)


- 36


-

-


-

-


5

-


-

- (Refer note 8.6of Schedule 10)

(1,288)


For the year

ended For the year



-

-

Fixed Deposit

-

-


10,421

2,408

Treasury Bills

-

-

Reverse Repo

379

184

10,800



-


-


-



Sahara Fixed Maturity Plan -3 months Series 4 (the “Scheme”) is a close ended Income Scheme of Sahara Mutual Fund (the “Fund”). The investment objective is to generate income by investing into debt and money market securities, normally maturing in line with the time profile of the scheme. The scheme has two options – (i) Growth option and (ii) Dividend option. The scheme will not declare dividend under the Growth Plan. The Income earned on such units will remain invested under the scheme and will be reflected in the Net Asset Value. The new fund offer period of the scheme was from 30/01/2008 to 12/03/2008. The scheme matured on 13TH June, 2008.


Sahara Mutual Fund (SMF) has been established as a Trust in accordance with the Indian Trusts Act, 1882, and is

sponsored by Sahara India Financial Corporation Limited (“SIFCL”).

Sahara Asset Management Company Private Limited (“SAMCPL”), a company incorporated under the Companies Act,

1956, has been appointed as the Asset Management Company (“Investment Manager”) to Sahara Mutual Fund.

The Shareholding of Sahara Asset Management Company Private Limited as on March 31, 2009 is as follows:


Equity 17.53 %





The Scheme maintains its books of account on an accrual basis. These financial statements have been prepared in

accordance with the Accounting Policies and Standards specified in the Ninth Schedule of The Securities and

Exchange Board of India (Mutual Funds) Regulations, 1996, (the “Regulation”), and amendments thereto, as

applicable.












A. A debt security (other than a Government security) is considered as a thinly traded security if on the valuation date, there are no individual trades in that security in marketable lots (currently Rs. 5 Crores) on the principal stock exchange or any other stock exchange.

B. Investments not traded on any stock exchange for a prescribed period prior to the valuation date are treated as non-traded.

C. Valuation of Unlisted/Non-traded/Thinly Traded debt instruments maturing within 182 days as at valuation date are valued at cost plus difference between the redemption value and the cost spread uniformly over the remaining maturity period of instrument.

D. Unlisted/Non traded/Thinly traded debt securities with over 182 days to maturity are valued in good faith by the Investment manager on the basis of valuation principles laid down by SEBI.


i).Money Market Instruments are valued at cost plus accrued interest.

ii) Investments bought on “repo basis” are valued at the resale price after deduction of applicable interest upto the date of resale. Investments sold on “repo basis” are adjusted for the difference between the repurchase price (after deduction of applicable interest upto the date of repurchase) and the value of the instrument.

iii) Traded treasury bills, certificate of deposits and commercial paper are valued at the yield at which they are currently traded. Non-traded treasury bills, certificate of deposits and commercial paper including those not traded for a period of seven days are valued at cost plus accrued interest.

iv) Investments in mutual fund schemes are valued based on the net asset value of the respective schemes as on the valuation date.











New Fund Offer expenses comprise those costs directly associated with the issue of units of the scheme and include brokerage / agent’s commission, advertising and marketing costs, registrar expenses and printing and dispatch costs. In accordance with the offer document of the scheme, such costs have been charged to the extent of 0.02 % of amount collected in initial offer and was amortized over a period of the period of the plan from the date of allotment.


Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve account of the respective Options/Scheme, after an appropriate amount of the issue proceeds and redemption payout is credited or debited respectively to the Income equalization account.











Custodian Charges



Income Tax Act, 1961. 8.3 Transactions with Brokers in excess of 5% or more of the aggregate purchases and sale of securities made by the





Fund Growth Fund

Liquid Fund

Mid cap Fund

Wealth Plus Fund

Infrastructure Fund

0.54 0.31 0.16 0.26 1.20 1.66


Fund Classic Fund




1.90 0.01 0.85 3.10 0.01


Tax Gain Fund

Gilt Fund

Growth Fund

Income Fund

Liquid Fund

Midcap Fund

1.91 0.11 0.45 0.15 0.74 1.19 (Rs.In lakhs)

Wealth Plus Fund

Infrastructure Fund

R. E. A. L Fund

FMP - 3 months



3.04 2.98 25.28 0.03 0.10 0.07


Year Amount in Rupees % of Daily average 2008-09 1,187,754/- 1020.52 2007-08 589,885/- 110.39

Sales

Year Amount in Rupees % of Daily average 2008-09 1,777,639/- 1527.35 2007-08 NIL NA

8.6 Load Charges


8.7 Aggregate Appreciation and Depreciation in the value of Investments:






MMis -

- - - 8.8 Income and Expense Ratio


9.28% 0.49%

Total Expenditure ( excluding deferred revenue expenditure) to average net assets calculated on a daily basis

0.20% 0.010%




As on





Units Repurchased during the year (57,094.877) (570,949) 0.000 0Closing Balance 0.000 0.00 57,094.877 570,949 8.09.2 Dividend Option


As on




March 31, 2008 Initial Capital 2,500.000 25,000 2,500.000 25,000

Opening Balance 2,500.000 25,000 - - Units Sold during the year 0.000 0.00 2,500.000 25,000

Units Repurchased during the year (2,500.000) (25,000) 0.000 0Closing Balance 0.000 0.00 2,500.000 25,000



Unclaimed Redemption and Dividend amounts as of March 31, 2009 are given below: Scheme Name No of

Investors Unclaimed

Dividend (Rs) No of

Investors Unclaimed

Redemption (Rs) Sahara FMP 3 months Sr 4 - - - -




( Rs. Lacs) Percentage (%)

Money Market Instruments Nil N/A N/A 8.14 Investments made by the scheme in Securities of Group Companies of the sponsor – NIL. 8.15 Holdings over 25% of the NAV of the scheme



8.16 Previous year’s figures have been reclassified and regrouped wherever necessary to conform to current year’s

classification.



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