1st Annual Report 2007 - 2008 - Mirae Asset · 1st Annual Report 2007 - 2008 C M Y K M K 1 ... commodities related sectors/sub ... maintained and monitored using in house research

1st Annual Report 2007 - 2008

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Sponsor:

Mirae Asset Investment Management Company LimitedRegistered office:45-I, Yoido-Dong,Youngdeungpo-Gu,Seoul, Korea – 150-891

Trustee Company:

Mirae Asset Trustee Company Private LimitedRegistered Office:Unit No.606, Windsor Building, Off. C.S.T Road, Kalina,Santacruz (East),Mumbai – 400 098.

Asset Management Company:

Mirae Asset Global Investment Management (India) Private LimitedRegistered & Corporate Office:Unit No.606, Windsor Building, Off. C.S.T Road, Kalina,Santacruz (East),Mumbai – 400 098.

Custodian:

Standard Chartered Bank23-25 Mahatma Gandhi Road,Fort, Mumbai 400 001.

Statutory Auditors:

S.R. Batliboi & Co.,Chartered Accountants6th floor, Express Towers,Nariman Point,Mumbai 400 021.

Registrar & Transfer Agent:

Karvy Computershare Private LimitedKarvy Plaza; H No. 8-2-596,Avenue 4 Street No 1,Banjara Hills, Hyderabad - 500 034.

Mirae Asset Trustee Company PrivateLimited

Mr. V. B. Haribhakti

Mr. S. T. Gerela

Mr. K. Ramasubramanian

Mr. N. N. Jambusaria

BOARD OF DIRECTORS

Mirae Asset Global Investment Management(India) Private Limited (AMC)

Mr. Anil Singhvi

Dr. Manoj Vaish

Mr. B. N. Chakraborty

Mr. M.S.Kim

Mr. Arindam Ghosh

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Annual Report of Mirae Asset Mutual Fund for the period ended March 31, 2008.

Dear Unit holder,

The Trustee company presents its first report and the audited financial statements of the Schemes of Mirae Asset MutualFund (the “Fund”), for the period ended March 31, 2008.

MIRAE ASSET MUTUAL FUND

During the period ended March 31, 2008, the Fund made its foray in the Indian Mutual Fund industry with the launch ofits maiden products viz. Mirae Asset Liquid Fund, an open ended liquid scheme and Mirae Asset Liquid Plus Fund, anopen ended debt scheme. The Assets under management were Rs. 1453.83 crores as at 31st March, 2008.

The NFO of Mirae Asset Liquid Fund generated Rs. 793.47 crores and Mirae Asset Liquid Plus Fund generatedRs. 640.38 crores.

The Fund(s) has declared dividends under its various Schemes and a list of such dividends is annexed and forms partof the Annual Report. During the period, the Assets under management were Rs. 1453.83 crores as at 31st March, 2008.

ICRA Limited has assigned the highest credit quality rating to schemes of Mirae Asset Mutual Fund:

Mirae Asset Liquid FundCredit Risk Rating mfA1+

Mirae Asset Liquid Plus Fund

Past Performance is no guarantee of future results.

Disclaimer - ICRA rating

This rating is the highest-credit-quality short-term rating and should not be construed as an indication of the performanceof the Mutual Fund scheme or of volatility in its returns. The rating should not be treated as a recommendation to buy, sellor hold the units issued by the Mutual Fund.

News Schemes launched since period ended March 31, 2008:

(I) Mirae Asset India Opportunities Fund, an open ended equity oriented fund:

The Fund also launched its maiden equity product - Mirae Asset India Opportunities Fund which opened forsubscription on 11th February, 2008.

The investment objective of the scheme is to generate long term capital appreciation by capitalizing on potentialinvestment opportunities through predominantly investing in equities, equity related securities.

The allotment for units of Mirae Asset India Opportunities Fund which opened for subscription on 11th February,2008 was done on 4th April, 2008. The benchmark of the fund is BSE 200. The NFO of the Fund generatedRs. 103.13 crores.

(II) Mirae Asset Global Commodity Stocks Fund, an open ended equity fund:

The investment objective of the scheme is to generate long term capital appreciation through an actively managedportfolio investing in equity and equity related securities of companies that are engaged in commodity andcommodities related sectors/sub sectors/industries, with at least 65% of the corpus invested overseas in AsiaPacific and Emerging Markets.

The allotment for units of Mirae Asset Global Commodity Stocks Fund which opened for subscription on 24th June,2008 was done on 20th August, 2008. The benchmark of the scheme is MSCI Asia Pacific ex Japan and IndiaEnergy & Materials Index (55%)+ MSCI Brazil Energy & Materials Index (10%) + BSE 200 (35%). The NFO of theFund generated Rs 69.61 crores.

(III) Mirae Asset Interval Fund, a debt oriented interval scheme:

Quarterly Plan-Series I

The investment objective of the scheme is to seek to generate returns with low volatility through a portfolio of debtand money market instruments with a provision to offer liquidity at periodic intervals.

The allotment for units of Mirae Asset Interval Fund-Quarterly Plan-Series I which opened for subscription on 7th

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August, 2008 was done on 13th August, 2008. The benchmark of the scheme is CRISIL Liquid Fund Index. TheNFO of the scheme generated Rs 147.61 crores.

DEBT MARKET OVERVIEW

The top priority of the government and RBI is to bring inflation down to acceptable levels of around 5 - 6% in the next 6 to9 months. The government has identified items like steel, edible oil, fuel prices and food articles which have resulted ininflation touching 12% plus levels. The government has taken various fiscal steps like banning exports of wheat and riceto augment domestic supply to contain food price inflation. There has been a record procurement of wheat to augmentbuffer stocks. The government has imposed tax on iron ore and requested primary steel producers to freeze prices.

The policy stance adopted by RBI has been to drain liquidity and increase the cost of funds. RBI is targeting a moneysupply growth of 17% and credit growth of 20% for the current financial year. RBI hiked CRR by 25 basis points and reporate by 50 basis points. The 25 bps hike in CRR is aimed at absorbing liquidity in the immediate term, arising due toinflow from coupons and bond maturity in that period and 50bps hike in repo rate was aimed to make interbank moneymore costly.

Yields on 10 yr G-Sec touched a high of 9.48% on July 16, 2008 before dropping to 9.10- 9.20% range due to falling oiland commodity prices. Most of the activity was seen in 10 year bond as participants were wary to take position in longend due to uncertainty in crude price and global factors. Corporate bond yields moved marginally due to continuoussupply of primary issuance and lack of participation.

India’s fiscal consolidation, which appeared impressive till last year has reversed direction. This is due to full passthrough not effected in case of petroleum products, fertilizer and food prices. Farm loan waiver of Rs 71,400 Crores andthe Sixth Pay Commission impact of around Rs. 38,400 crores alongwith petroleum subsidies of Rs. 185,000 croresand fertilizers subsidies of around Rs. 115,000 crores will take the off balance sheet liabilities to 5% of GDP. The fiscaldeficit would now be around 7.5% of GDP if off balance sheet items are included.

Inflation is expected to remain in double digits due to low base till the end of this calendar year. Due to this softening ofinterest rates is quite unlikely for the next few weeks.

($ Source : Economic advisory council to Prime Minister).

FUTURE OUTLOOK OF THE FUND AND OPERATIONS OF THE SCHEMES

Mirae Asset Mutual Fund intends to actively pursue growth opportunities in the fast growing mutual fund industry in thecountry. The last Quarter of 2007-2008 witnessed a sharp drop in growth due to global meltdown and its impact on theIndian economy on capital markets. For the year 2008-09, a moderation in growth for the MF Industry in India isanticipated due to declining NFO mobilization, weakening investor sentiments and volatile market conditions.

However, Mirae Asset Mutual Fund is aiming to grow with innovative products and strong performance brands. The fourdifferentiating factors for Mirae Asset in the Indian Mutual Fund business will be the following: (1) Strong Brand Positioning(2) Investment Performance (3) Investment Education and (4) Innovative Products.

FUTURE OUTLOOK OF DEBT MARKET

All indicators like inflation (12% plus range), high year on year credit growth of 25%, M3 growth of 19.5% are above RBItargeted levels. RBI is expected to maintain a relatively tight stance for the immediate future and may continue to pursuean aggressive liquidity management policy. However, a silver lining is the moderation in crude oil prices globally,expectation of disinvestments in PSU’s and licensing fee from 3G auction. This gives some hope for moderation instance by RBI. We expect inflation to peak in the coming few months. The key risk to our inflation/interest rate forecastarises from another sharp run-up in crude oil prices due to geo-political events. Our medium term target for the 10 yr G-sec is in the range of 9.00%-9.40% range. Corporates bonds yields are expected to rise, due to continued supply ofpapers.

OBJECTIVES, INVESTMENT POLICY & PERFORMANCE OF THE SCHEMES

(I) MIRAE ASSET LIQUID FUND, an open ended liquid scheme:

The investment objective of the scheme is to seek to generate reasonable returns with low volatility and higherliquidity through a portfolio of debt and money market instruments. The Scheme does not guarantee any returns.

Mirae Asset Liquid Fund is an open ended liquid fund with the investment objective to generate reasonable returns

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with low volatility and high liquidity through a portfolio of debt and money market instruments. Investments in thescheme are made after considering the credit and liquidity of the instrument. The credit quality of the portfolio ismaintained and monitored using in house research capabilities as well as inputs from external sources such asindependent rating agencies. The scheme is meant for investors to deploy their funds for a short period of time.The performance of the scheme is benchmarked against CRISIL Liquid Fund Index.

This scheme is meant for investors to deploy their funds for a short period of time. The fund is managed accordingto the investment objective, thereby seeking to generate reasonable returns commensurate with low risk. Thescheme invests in money market and other debt securities and maintains high liquidity for the purpose of meetingthe liquidity requirements of the investors.

The net assets of the Mirae Asset Liquid Fund amounted to Rs.870.01/- crore as at March 31, 2008.

As at March 31, 2008, 64.67% of the net assets were invested in Commercial Paper, Certificate of Deposit and35.33% were invested in other current assets (including Cash / CBLO/ Mibor linked debentures with daily put-calloption/ Discounted Instruments).

Comparison of the performance of Mirae Asset Liquid Fund with benchmark returns as on 31st March, 2008:-

Scheme Name NAV Absolute Benchmark**as on Returns since returns (%)

31st March, 2008 inception* (%)^ (Absolute)

Mirae Asset Liquid Fund - IP - Daily Dividend 1000.7145 0.501 0.638

Mirae Asset Liquid Fund - IP - Growth 1006.8341 0.638 0.638

Mirae Asset Liquid Fund - Reg - Growth 1006.6394 0.664 0.638

Mirae Asset Liquid Fund – IP – Wkly Dividend 1000.2732 0.027 0.089

Mirae Asset Liquid Fund - Reg - Monthly Dividend 1006.6429 0.664 0.638

Mirae Asset Liquid Fund - Reg - Bonus 1000.265 0.026 0.089

Mirae Asset Liquid Fund - Reg - Wkly Dividend 1001.4255 0.549 0.638

Mirae Asset Liquid Fund - Super IP - Daily Dividend 1000.7145 0.510 0.638

Mirae Asset Liquid Fund – Super IP - Wkly Dividend 1000.2786 0.028 0.089

The price and redemption value of the units, and income from them, can go up as well as down with the fluctuationsin the market value of its underlying investments.

* Date of Allotment/ Inception date:- 5th March 2008

** Benchmark:- CRISIL Liquid Fund Index

^ Past performance may or may not be sustained in future.

(II) MIRAE ASSET LIQUID PLUS FUND, an open ended debt scheme:

The investment objective of the scheme is to seek to generate returns with low volatility and higher liquidity througha portfolio of debt and money market instruments. The Scheme does not guarantee any returns.

Mirae Asset Liquid Plus Fund is an open ended debt fund with the investment objective to generate returns withlow volatility and high liquidity through a portfolio of debt and money market instruments. Investments in thescheme are made after considering the credit and liquidity of the instrument. The credit quality of the portfolio ismaintained and monitored using in house research capabilities as well as inputs from external sources such asindependent rating agencies. The scheme is meant for investors to deploy their funds for a short period of time.The performance of the scheme is benchmarked against CRISIL Liquid Fund Index.

This scheme is meant for investors to deploy their funds for a short period of time. The fund is managed accordingto the investment objective, thereby seeking to generate returns commensurate with low risk. The scheme investsin money market and other debt securities and maintains high liquidity for the purpose of meeting the liquidityrequirements of the investors.

The net assets of the Mirae Asset Liquid Plus Fund amounted to Rs. 515.65/- crore as at March 31, 2008.


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As at March 31, 2008, 94.05% of the net assets were invested in Certificate of Deposits and balance were investedin other current assets (including Cash / MIBOR linked debentures with daily put/call option / DiscountedInstruments).

Comparison of the performance of Mirae Asset Liquid Plus Fund with benchmark returns as on 31st March, 2008:-

Scheme Name NAV Absolute Benchmark**as on Returns since returns (%)

31st March, 2008 inception* (%)^ (Absolute)

Mirae Asset Liquid Plus Fund - IP - Daily Dividend 1001.3985 0.641 0.638

Mirae Asset Liquid Plus Fund - IP - Growth 1007.1206 0.712 0.638

Mirae Asset Liquid Plus Fund - Reg - Daily Dividend 1001.3985 0.624 0.638

Mirae Asset Liquid Plus Fund - Reg - Growth 1006.9538 0.695 0.638

Mirae Asset Liquid Plus Fund - Reg – Bonus 1000.7687 0.077 0.096

Mirae Asset Liquid Plus Fund - Reg - Mthly Dividend 1006.9392 0.694 0.638

Mirae Asset Liquid Plus Fund - Reg - Wkly Dividend 1001.6995 0.471 0.638

Mirae Asset Liquid Plus Fund - Super IP - Daily Dividend 1001.3985 0.652 0.638

Mirae Asset Liquid Plus Fund - Super IP - Growth 1007.2417 0.724 0.628

Mirae Asset Liquid Plus Fund - Super IP - Wkly Dividend 1001.1146 0.111 0.096

The price and redemption value of the units, and income from them, can go up as well as down with the fluctuationsin the market value of its underlying investments.

* Date of Allotment/ Inception date:- 5th March 2008

** Benchmark:- CRISIL Liquid Fund Index

^ Past performance may or may not be sustained in future.

STATUTORY DETAILS

Mirae Asset Mutual Fund has been set up as a trust sponsored by Mirae Asset Investment Management CompanyLimited, a company incorporated in South Korea. (liability restricted to their contribution of Rs. 1 lakh each to the corpusof Mirae Asset Mutual Fund) with Mirae Asset Trustee Company Private Limited as the Trustee (Trustee under the IndianTrusts Act, 1882) and with Mirae Asset Global Investment Management (India) Private Limited (MAGIM AMC) as theInvestment Manager.

Mirae Asset Investment Management Company Limited (MAIM) is a part of Mirae Asset Financial Group (Mirae Asset).Mirae Asset was established in 1997 and is South Korea’s leading independent financial services provider. With AssetManagement as its core activity, Mirae Asset is engaged in a broad range of financial services including InvestmentBanking, Wealth Management and Life Insurance. Other significant activities of the group include Alternate Investmentincluding Private Equity, Venture Capital and Real Estate.

Full Annual Report shall be disclosed on the website (www.miraeassetmf.co.in) and shall be available for inspection atthe Head Office of the Mutual Fund. On written request present and prospective unit holders / investors can obtain a copyof the Trust Deed, the Annual Report at a price.

The Balance Sheet as on 31st March, 2008 and the Revenue Account for the period ended 31st March, 2008 for the variousschemes are annexed to this Report.

INVESTOR SERVICES

Mirae Asset Mutual Fund has initiated several investment education programs for its distributors and investors at largein the recent past. As a part of this initiative, the AMC has set up ‘Mirae Asset Knowledge Academy’ to ensure a focusedapproach towards imbibing the required investment knowledge/skills. Mirae Asset Knowledge Academy has conducteddifferent programs which include a knowledge series on ‘Commodity Basics’ to help promote the understanding forCommodities as an Asset class. In addition, the Academy had tied up with MCX (India’s No.1 commodity exchange) &FTKMC (Financial Technologies Knowledge Management Company - an affiliate of MCX) to provide exclusive trainingprograms on commodities to help distributors get comprehensive understanding of the asset class.

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Going forward, Mirae Asset Knowledge Academy will initiate more programs/ activities to promote financial literacy andskills among the investor base.

Devidends declared

During the period ended March 31, 2008, Mirae Asset Mutual Fund has declared the following dividends:

MIRAE ASSET LIQUID FUND

Sr. No. Plan Dividend per unit # (Rs.) Record Date NAV per unit

Individual Others (Ex-DividendNAV)

1 Institutional - Dividend Plan (Daily) 4.7477 4.7477 Mar-08 1000.7145

2 Regular - Dividend Plan (Daily) 4.6069 4.6069 Mar-08 1000.7145

3 Super Inst - Dividend Plan (Daily) 4.8414 4.8414 Mar-08 1000.7145


Individual Others (Cum – DividendNAV)

4 Regular - Dividend Plan (Weekly) 1.4003 1.4003 12/03/2008 1002.1494



Date of Allotment: 05.03.2008

MIRAE ASSET LIQUID PLUS FUND


Individual Others (Ex-DividendNAV)

1 Institutional - Dividend Plan (Daily) 4.9997 4.6533 Mar-08 1001.3985

2 Regular - Dividend Plan (Daily) 4.8326 4.4978 Mar-08 1001.3985

3 Super Inst - Dividend Plan (Daily) 5.1052 4.7516 Mar-08 1001.3985


Individual Others (Cum – DividendNAV)




Date of Allotment: 05.03.2008

Note: Post declaration of the dividend, the NAV of the Scheme will fall to the extent of the dividend pay-out and distributiontax, if any.

# Dividends declared are out of distributable surplus on a daily basis. Hence only ex-dividend NAV per Unit is declared.

For daily dividends cumulative dividend for a plan is indicated with record date as the month of dividend and the exdividend NAV as on March 31, 2008. In case of weekly dividends, a day wise listing and cum dividend NAV is given in theabove table.

Past performance may or may not be sustained in future.


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LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SPONSORS

The liabilities and responsibility of the Trustee are in accordance with the SEBI (Mutual Funds) Regulations, 1996, Trustdeed and the offer documents of the schemes. The liability of the Sponsor/Settlor is limited to the initial contribution ofRs. 100,000/- towards the setting up of Mirae Asset Mutual Fund.

The price and redemption value of the units and income from them, can go up as well as down with the fluctuations inthe market value of its underlying investments. There can be no assurance that the Fund’s objective will be achieved.Past performance is not necessarily indicative of future results and may not necessarily provide a basis for comparisonwith other investments.

INVESTMENT OBJECTIVE OF THE SCHEMES:

(a) Mirae Asset Liquid Fund:

The investment objective of the scheme is to seek to generate reasonable returns with low volatility and higherliquidity through a portfolio of debt and money market instruments. The Scheme does not guarantee any returns.

(b) Mirae Asset Liquid Plus Fund:

The investment objective of the scheme is to seek to generate returns with low volatility and higher liquidity througha portfolio of debt and money market instruments. The Scheme does not guarantee any returns.

BASIS AND POLICY OF INVESTMENTS UNDERLYING THE SCHEMES OF MIRAE ASSET MUTUAL FUND

Investment policies of the Funds reflect restrictions for mutual fund investments established by SEBI.

Avenues for investment in money market/debt market are identified on the following criteria:

1. Economic Scenario.

2. RBI Stance.

3. Credit Risk.

4. Liquidity.

5. Any other in the opinion of AMC

ACKNOWLEDGEMENTS

The Trustee Company thanks SEBI, AMFI, the investors, Investor Service Centres, distributors, key partners, serviceproviders, the AMC and its employees for their commitment and looks forward to their continued support.

On behalf of the Board of Directors

Mirae Asset Trustee Company Private Limited

V. B. Haribhakti S. T. GerelaDirector Director

Place : MumbaiDate : 26th August, 2008.

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Auditors’ Report

To the Trustee of

MIRAE ASSET MUTUAL FUND – MIRAE ASSET LIQUID FUND

1. We have audited the attached balance sheet of MIRAE ASSET MUTUAL FUND – MIRAE ASSET LIQUID FUND (‘theScheme’) as at March 31, 2008 and also the revenue account for the period from March 5, 2008 to March 31, 2008(‘the period’) annexed thereto. These financial statements are the responsibility of the management of MiraeAsset Global Investment Management (India) Private Limited, the Scheme’s asset managers. Our responsibilityis to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

3. We report that:

i. We have obtained all the information and explanations which, to the best of our knowledge and belief, werenecessary for the purposes of our audit.

ii. The balance sheet and revenue account dealt with by this report are in agreement with the books of account.

iii. In our opinion, the balance sheet and revenue account dealt with by this report have been prepared inconformity with the accounting policies and standards specified in the Ninth Schedule to the Securities andExchange Board of India (Mutual Funds) Regulations, 1996 (‘the SEBI Regulations’).

iv. In our opinion, and on the basis of information and explanations given to us, the methods used to value nontraded securities as at March 31, 2008 in accordance with the SEBI Regulations and other guidelinesissued by the Securities and Exchange Board of India as applicable and approved by the Board of Directorsof Mirae Asset Trustee Company Private Limited, are fair and reasonable.

v. In our opinion, and to the best of our information and according to the explanations given to us, the saidfinancial statements give the information required by the SEBI Regulations as applicable, and give a trueand fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the balance sheet, of the state of affairs of the Scheme as at March 31, 2008; and

b) in the case of the revenue account, of the surplus for the period ended on that date.

For S.R. BATLIBOI & CO.

Chartered Accountants

per Viren H. Mehta

Partner

Membership No.:048749

Mumbai,April 29, 2008


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BALANCE SHEET AS AT MARCH 31, 2008

(All amounts in thousands of Rupees)

Schedule 2008

SOURCES OF FUNDS

Unit capital 2(b) & 3 8,571,493

Reserves and surplus 2(b) & 4 42,887

Current liabilities 5 86,783

8,701,163

APPLICATION OF FUNDS

Investments 2(c), 6 & 14 7,133,950

Other current assets 7 1,567,213

8,701,163The accompanying schedules are an integral part of this balance sheet.

As per our report of even date.

For S.R. Batliboi & Co. Mirae Asset Trustee Mirae Asset Global InvestmentChartered Accountants Company Private Limited Management (India) Private Limited

Per Viren H. Mehta Mr. S.T. Gerela Mr. Anil SinghviPartner Director DirectorMembership No.048749

Mr. V.B. Haribhakti Mr. Arindam GhoshDirector Director & CEO

Mr. Murthy NagarajanMumbai Fund ManagerApril 29, 2008

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REVENUE ACCOUNT FOR THE PERIOD FROM MARCH 05, 2008 TO MARCH 31, 2008


Schedule March 05, 2008to March 31, 2008

INCOME

Interest 2(d) & 8 35,648

Profit on sale/redemption of investments, net 2(d) 1,013

36,661

EXPENSES AND LOSSES

Management fee 9 301

Trusteeship fee 9 20Custodian service charges 43Registrar service charges 112

Commission to distributors 173Audit fee 169Other operating expenses 343

1,161

Surplus for the period 35,500Equalisation credit 2(e) 16,834Transfer from Unit Premium Reserve 4

Income distribution on capital account (8,773)Income-tax on distributed income (2,485)

Retained surplus transferred to the balance sheet 4 41,080

The accompanying schedules are an integral part of this revenue account.







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MIRAE ASSET LIQUID FUNDSCHEDULES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM MARCH 5, 2008TO MARCH 31, 2008

(All amounts in thousands of Rupees unless specified otherwise)

1. BACKGROUND

Mirae Asset Mutual Fund - Mirae Asset Liquid Fund was launched as an open ended liquid scheme onMarch 5, 2008. The new fund offer of the Scheme opened on February 27, 2008 and closed on March 3, 2008.

Mirae Asset Investment Management Company Limited with effect from October 11, 2007 are the sponsors of MiraeAsset Mutual Fund (The Fund).

In accordance with SEBI (Mutual Funds) Regulations 1996 (the SEBI Regulations), the Board of Directors of MiraeAsset Trustee Company Private Limited (the Trustee) has appointed Mirae Asset Global Investment Management(India) Private Limited (the AMC) to manage the Fund’s affairs and operate its schemes.

The investment objective of the scheme is to generate reasonable returns with low volatility and higher liquiditythrough a portfolio of debt and money market instruments. The scheme does not guarantee any returns.

The Scheme offers its investors the following plans:

Institutional - Dividend Plan (Daily)

Institutional - Dividend Plan (Weekly)

Institutional - Growth Plan

Regular - Bonus Plan

Regular - Dividend Plan (Daily)

Regular - Dividend Plan (Weekly)

Regular - Dividend Plan (Monthly)

Regular - Growth Plan

Super Institutional - Dividend Plan (Daily)

Super Institutional - Dividend Plan (Weekly)

Super Institutional - Growth Plan

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared on the accrual basis of accounting, under the historical cost convention, asmodified for investments, which are ‘marked-to-market’. The significant accounting policies, which are in accordancewith the SEBI Regulations and have been approved by the Boards of Directors of the AMC and the Trustee, arestated below.

(a) Determination of net asset value

- The net asset value of the units of the scheme is determined separately for the units issued under thePlans.

- For reporting the net asset values within the portfolio, its daily income earned, including realised profit orloss and unrealised gain or loss in the value of investments, and expenses incurred, are allocated to therelated plans in proportion to their respective daily net assets, adjusted for unit capital movement for theday.

(b) Unit capital

- Unit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactionsrelating to the period ended on that date.

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- Upon issue and redemption of units, the net premium or discount to the face value of units is adjustedagainst the unit premium reserve of each Plan, after an appropriate portion of the issue proceeds andredemption payouts is credited or debited respectively to the equalisation account, a mandatory requirementfor open ended mutual fund schemes.

(c) Investments

Accounting for investment transactions

- Purchase and sale of investments are recorded on the date of the transaction, at cost and sale pricerespectively, after considering brokerage, commission, and fees payable or receivable, if any.

- Right entitlements are recognised as investments on the ex-rights date.

Valuation of investments

- Investments in Central Government securities are stated at their traded prices on the balance sheet date,as released by an independent agency suggested by the Association of Mutual Funds in India (‘AMFI’).

- Investments in fixed income securities are valued as follows:

- Securities traded on the balance sheet date (on the stock exchange where a majority (in terms ofvalue) of these securities are principally traded),are stated at the last traded price.

- Other fixed income investments are stated at their fair value as determined by the AMC in accordancewith the SEBI Regulations and related circulars, based on comparative yields released by anindependent agency suggested by the AMFI. On days where such comparative yields are not released,the fair value is determined based on the traded or purchase price or the comparative yields relatingto the immediately preceding day.”

- Treasury Bill, Commercial Paper and Certificate of Deposit are valued at carrying cost, which includesdiscount accrued on an straight line basis over the period to maturity, wherever market price is available thesame is used for valuation.

(d) Revenue recognition

- Interest income is recognised on an accrual basis.

- Profit or loss on sale/redemption of investments is determined on the basis of the weighted average costmethod.

(e) Equalisation account

- The purpose of equalisation account is to maintain per unit amount of a Plan’s share of the Scheme’sundistributed income earned during the accounting period, so that continuing unitholders’ share ofundistributed income remains unchanged on issue or redemption of units under that Plan.

- When units are issued or redeemed, the total undistributed income from the beginning of the accountingyear to the date of the transaction is determined. Based on the number of units outstanding on the transactiondate, the undistributed income associated with each unit is computed. The per unit amount so determinedis credited and debited to the equalisation account on issue and redemption of each unit respectively.

- At period end, the balance in the equalisation account is transferred to the revenue account.

(f) Load

- Load collected is utilised to meet marketing and selling expenses incurred during the year to the extentconsidered appropriate by the AMC. Unutilised amount is carried forward to meet future marketing andselling expenses. However, load collected is credited to the income of the scheme as and when it isconsidered appropriate by the Trustees.


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3. UNIT CAPITAL

Quantity Amount (in ‘000)2008 2008

Units of Rs 1000 each fully paid up


Issued

- initial public offer 188,258.656 188,259

- during the period 548,773.578 548,774

Redeemed during the period (706,889.584) (706,890)

Outstanding, end of period 30,142.650 30,143


Issued

- initial public offer - -


Redeemed during the period - -



Issued






Issued

- initial public offer - -

- during the period 10.000 10


Outstanding, end of period 10.000 10


Issued






Issued





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Issued

- initial public offer 890.000 890





Issued






Issued- initial public offer 1,570,000.000 1,570,000- during the period 7,990,219.190 7,990,219

Redeemed during the period (7,506,219.735) (7,506,220)

Outstanding, end of period 2,053,999.455 2,053,999


Issued- initial public offer - -- during the period 500,000.000 500,000

Redeemed during the period - -Outstanding, end of period 500,000.000 500,000


Issued

- initial public offer 5,800,000.000 5,800,000- during the period 18,976,944.588 18,976,945



Total

Issued

- initial public offer 7,934,725.656 7,934,725

- during the period 28,699,804.566 28,699,805Redeemed during the period (28,063,037.267) (28,063,037)


At March 31, 2008, of the above unit capital, approximately 34.49% per cent of the asset under management of theScheme is held by a single investor.


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Amount (in ‘000)2008

4. RESERVES AND SURPLUS

Unit premium reserve

Net premium on issue/redemption of units 17,437

Transferred to Revenue account 4

Transferred to Equalisation account 16,834

Balance, end of period 599

Unrealised appreciation reserve

Change in net unrealised appreciation in value of investments 1,208

Balance, end of period 1,208

Retained surplus

Surplus transferred from revenue account 41,080


Total reserves 42,887

The share of the plans in the reserves and surplus is as follows:

Institutional - Dividend Plan (Daily) 22Institutional - Dividend Plan (Weekly) 3

Institutional - Growth Plan 1,737Regular - Bonus Plan 0Regular - Dividend Plan (Daily) 25

Regular - Dividend Plan (Weekly) 11Regular - Dividend Plan (Monthly) 13Regular - Growth Plan 138

Super Inst - Dividend Plan (Daily) 1,468Super Inst - Dividend Plan (Weekly) 139Super Inst - Growth Plan 39,331

42,8875. CURRENT LIABILITIES

Amount due to AMC- Management fee 21

- Others 170

Sundry creditors for units redeemed by investors

- Lateral Shift Payable 85,045

Other current liabilities 1,547

86,7836. INVESTMENTS

Privately placed debentures and bonds 1,000,000

Commercial paper 149,742

Certificates of Deposit 5,486,030

Bills Re-discounted 498,178

7,133,950

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Amount (in ‘000)2008

(i) All the investments are held in the name of the Scheme, as per clause 7 of SeventhSchedule under Regulations 44(1) of SEBI (Mutual Funds) Regulations, 1996.

(ii) Aggregate appreciation and depreciation in the value of investments are as follows:

Certificate of Deposit

- appreciation 1,208

- depreciation -

(iii) The aggregate value of investments acquired and sold/redeemed during the periodand these amounts as a percentage of average daily net assets are as follows:

Purchases (excluding collateralised lending and fixed deposit)

- amount 17,494,585

- as a percentage of average daily net assets 335.62

Sales / Redemptions (excluding collateralised lending and fixed deposit)

- amount 10,393,859


(iv) The aggregate purchases made by the schemes during the current period and the fairvalue of such investments as at March 31, 2008 in companies which have invested inany scheme of the Fund in excess of five per cent of that scheme’s net assets areprovided in Attachment I.

(v) Aggregate fair value of non traded investments as on March 31, 2008 1,000,000(excluding commercial papers, certificates of deposit and government securities and

bills re-discounted)

(vi) Investments in the sponsor company and its group companies NIL

7. OTHER CURRENT ASSETS

Balances with banks in current accounts 37,092

Sundry debtors for units issued to investors

- Others (44)

Advances and deposits 30,100

Outstanding and accrued income 504

Other current assets 80

Collaterised Lending 1,499,481

1,567,213

8. INTEREST

Money market instruments 22,601

Debentures and bonds 8,644

Deposits 346

Collaterised Lending (reverse re-purchase transaction) 4,057

35,648


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9. MANAGEMENT AND TRUSTEESHIP FEE

The Scheme pays fees for investment management services (excluding service tax) under an agreement with theAMC, which provides for computation of such fee as a percentage of Scheme’s average daily net assets, afterexcluding the net asset value of the investments by the AMC in the scheme and net asset value of investment madein other schemes, if any. During the year ended March 31, 2008, the Scheme has paid management fee at annualisedaverage rate of 0.08 per cent.

The Scheme pays fees for Trusteeship services under agreement with the Trustee, which provides for computationof such fee at 0.05 per cent of the Scheme’s average daily net assets, subject to a minimum of Rs. 5 lakhs perannum, divided equally in all the schemes.

10. INCOME AND EXPENDITURE

The total income and expenditure and these amounts as a percentage of the Scheme’s average daily net assets onan anuualised basis are provided below:

March 5, 2008to March 31,

2008

Income- amount 36,661


Expenditure (excluding provision for net unrealised loss and realised loss on sale ofinvestments)

- amount 1,161


11. RELATED PARTY DISCLOSURES

The Scheme has entered into transactions with certain related parties. The information required in this regard inaccordance with Regulation 25(8) of the SEBI Regulations, is provided below.

(i) Transactions as per Regulation 25(8) of the SEBI Regulations are provided below

Name of related party Nature of transactions Period ended Balance as atMarch 2008 March 31, 2008

Mirae Asset Trustee Company Fees for trusteeship services 20 20Private Limited

Mirae Asset Global Investment Fees for investmentManagement (India) Private Limited management services 301 301

12. NET ASSET VALUE

Net asset value of each unit of Rs 1000 of the Scheme 2008

Institutional - Dividend Plan (Daily) 1000.7145Institutional - Dividend Plan (Weekly) 1000.2732Institutional - Growth Plan 1006.8341Regular - Bonus Plan 1000.2650Regular - Dividend Plan (Daily) 1000.7146Regular - Dividend Plan (Weekly) 1001.4255Regular - Dividend Plan (Monthly) 1006.6429Regular - Growth Plan 1006.6384Super Institutional - Dividend Plan (Daily) 1000.7145Super Institutional - Dividend Plan (Weekly) 1000.2786Super Institutional - Growth Plan 1006.9524

The net asset value of the Scheme’s unit is determined separately for units issued under the plans after includingthe respective unit capital and reserves and surplus.

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13. PRIOR PERIOD COMPARATIVES

As these are the first financial statements of the Scheme since the date of its launch, there are no prior periodcomparatives.

14. SUPPLEMENTARY INVESTMENT PORTFOLIO INFORMATION AND INDUSTRYWISE CLASSIFICATION

Details of investment portfolio and industrywise classification of the Scheme’s investments in each category ofinvestments at March 31, 2008 are presented below. The industry and company exposures are stated as a percentageof the Scheme’s net assets as at March 31, 2008, as well as the aggregate investments in each investmentcategory.

Industry and Company Particulars Quantity Amount Percentage to Percentage to(in Rs. Net Assets Investment

Thousands) category (%)

DEBENTURES AND BONDS(a) Private Placed Debentures and BondsFinance 10,000,000 1,000,000 11.60 100.00* Edelweiss Capital Limited (30/05/2008) 5,000,000 500,000.00 5.80 50.00

* Reliance Capital Ltd. (23/05/2008) 5,000,000 500,000.00 5.80 50.00

Total 10,000,000 1,000,000 11.60 100.00(b) Listed Debentures and Bonds

CERTIFICATES OF DEPOSITBanks 59,239,000 5,486,030.42 63.70 89.44* Punjab National Bank (24/02/2009) 13,500,000 1,241,647.43 14.41 20.24

* Oriental Bank of Commerce (25/03/2009) 10,000,000 912,865.74 10.60 14.88

* Industrial Development Bank Of India (29/01/2009) 5,000,000 463,652.96 5.38 7.56

* Allahabad Bank (12/03/2009) 5,000,000 457,703.69 5.31 7.46

* Vijaya Bank (24/03/2009) 5,000,000 457,033.00 5.31 7.45

* Development Credit Bank Ltd. (08/04/2008) 4,000,000 399,196.40 4.63 6.51

* Federal Bank Ltd. (02/03/2009) 3,167,000 291,006.13 3.38 4.74

* State Bank Of Travancore (25/11/2008) 2,500,000 234,853.59 2.73 3.83

* State Bank Of Patiala (10/03/2009) 2,500,000 228,826.36 2.66 3.73

* Industrial Development Bank Of India (26/03/2009) 2,500,000 228,017.41 2.65 3.72

* Allahabad Bank (27/02/2009) 2,352,000 215,813.40 2.51 3.52

* Hongkong & Shanghai Banking Corpn. Ltd. (26/05/2008) 2,000,000 197,850.88 2.30 3.23

* Union Bank of India (17/03/2009) 1,220,000 111,687.00 1.30 1.82

* ICICI Bank Ltd. (27/02/2009) 500,000 45,876.43 0.53 0.75

BILLS RE-DISCOUNTEDBanks 5,000,000 498,178 5.78 8.12* HDFC Bank Ltd. (15/04/2008) 5,000,000 498,178 5.78 8.12

Commercial Paper 1,500,000 149,742 1.74 2.44Finance* Reliance Capital Ltd. (07/04/2008) 1,500,000 149,742 1.74 2.44

Total 65,739,000 6,133,950 71.22 100.00OTHER CURRENT ASSETS 1,567,213 18.19

TOTAL ASSETS 8,701,163 101.01LESS: CURRENT LIABILITIES 86,783 1.01

NET ASSETS 8,614,380 100.00

* Non-Traded / thinly traded investment


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ATTACHMENT I


Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

Investment made by the schemes of Mirae Asset Mutual Fund in companies or their subsidiaries that have investedmore than 5% of the net assets of any scheme during the year 2007-2008

Name of Company Scheme(s) in which the Scheme(s) which invested Aggregate Market / Fair Valuecompany has invested in securities of the Investment of Investments

mentioned company made in the as at March 31,company by the 2008scheme during (Rs. In Lacs)

the 2007-2008(Rs. In Lacs)

DSP Merill Lynch Mirae Asset Liquid Fund Mirae Asset Liquid Fund 5,000.00 -Capital Ltd.

HDFC Bank Ltd. Mirae Asset Liquid Fund Mirae Asset Liquid Fund 4,980.48 4,981.78

Mirae Asset Liquid Plus Fund Mirae Asset Liquid Plus Fund 2,490.24 2,490.89

ICICI Bank Ltd. Mirae Asset Liquid Fund Mirae Asset India Opportunities 378.91 329.30Fund

Mirae Asset Liquid Fund 14,109.62 458.76

Mirae Asset Liquid Plus Fund 13,653.36 11,010.34

ICICI Sec Primary Mirae Asset Liquid Fund Mirae Asset Liquid Fund 1,500.00 -Dealership Ltd.

ICICI Securities Ltd Mirae Asset Liquid Fund Mirae Asset Liquid Plus Fund 3,500.00 -

L&T FINANCE LTD Mirae Asset Liquid Fund Mirae Asset Liquid Plus Fund 5,000.00 -

Reliance Industries Mirae Asset Liquid Fund Mirae Asset India Opportunities 455.13 435.03Ltd. Fund

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Historial Per Unit Statistics

Particulars Mirae AssetLiquid Fund5-Mar-08 to

31-Mar-08

Units 8,657.23

(a) Net Asset Value, per unit Institutional - Dividend Plan (Daily) 1,000.7145

Institutional - Dividend Plan (Weekly) 1,000.2732Institutional - Growth Option 1,006.8341Regular - Bonus Plan 1,000.2650

Regular - Dividend Plan (Daily) 1,000.7145Regular - Dividend Plan (Monthly) 1,006.6429Regular - Dividend Plan (Weekly) 1,001.4255

Regular - Growth Option 1,006.6394Super Inst - Dividend Plan (Daily) 1,000.7145Super Inst - Dividend Plan (Weekly) 1,000.2786

Super Inst - Growth Option 1,006.9524

(b) Gross Income:

i) Income other than profit on sale of investment,per unit 4.12

ii) profit / (loss) on interscheme sale/transfer ofinvestment, per unit -

iii) profit / (loss) on sale of investment to third party,

per unit 0.12

iv) transfer to Revenue Account from past year’sreserve per unit -

(c) Aggregate of expenses, write offs, amortisation andcharges, per unit 0.13

(d) Net Income, per unit 4.10

(e) Net unrealised appreciation/(depreciation) in valueof investments 0.14

(f) i ) Highest traded price -

ii ) Lowest traded price -

iii) Highest repurchase price/NAV Institutional - Dividend Plan (Daily) 1,000.7145

Institutional - Dividend Plan (Weekly) 1,000.2732

Institutional - Growth Option 1,006.8341

Regular - Bonus Plan 1,000.2650

Regular - Dividend Plan (Daily) 1,000.7145

Regular - Dividend Plan (Monthly) 1,006.6429

Regular - Dividend Plan (Weekly) 1,001.9366

Regular - Growth Option 1,006.6394

Super Inst - Dividend Plan (Daily) 1,000.7145

Super Inst - Dividend Plan (Weekly) 1,000.2786



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iv) Highest resale price Institutional - Dividend Plan (Daily) 1,000.7145











v) Lowest repurchase price/NAV Institutional - Dividend Plan (Daily) 1,000.000











vi) Lowest resale price Institutional - Dividend Plan (Daily) 1,000.0000











vii) Price Earning Ratio NA

viii) Ratio of Expenses to Average Net Assets(%) 0.30%

ix) Ratio of Gross Income (including unrealised 9.85%appreciation / depreciation) to AverageNet Assets (%)

Particulars Mirae AssetLiquid Fund5-Mar-08 to

31-Mar-08

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Auditors’ Report

To the Trustee of

MIRAE ASSET MUTUAL FUND – MIRAE ASSET LIQUID PLUS FUND

1. We have audited the attached balance sheet of MIRAE ASSET MUTUAL FUND – MIRAE ASSET LIQUID PLUSFUND (‘the Scheme’) as at March 31, 2008 and also the revenue account for the period from March 5, 2008 toMarch 31, 2008 (‘the period’) annexed thereto. These financial statements are the responsibility of the managementof Mirae Asset Global Investment Management (India) Private Limited, the Scheme’s asset managers. Ourresponsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

3. We report that:

i. We have obtained all the information and explanations which, to the best of our knowledge and belief, werenecessary for the purposes of our audit.

ii. The balance sheet and revenue account dealt with by this report are in agreement with the books of account.

iii. In our opinion, the balance sheet and revenue account dealt with by this report have been prepared inconformity with the accounting policies and standards specified in the Ninth Schedule to the Securities andExchange Board of India (Mutual Funds) Regulations, 1996 (‘the SEBI Regulations’).

iv. In our opinion, and on the basis of information and explanations given to us, the methods used to value nontraded securities as at March 31, 2008 in accordance with the SEBI Regulations and other guidelinesissued by the Securities and Exchange Board of India as applicable and approved by the Board of Directorsof Mirae Asset Trustee Company Private Limited, are fair and reasonable.

v. In our opinion, and to the best of our information and according to the explanations given to us, the saidfinancial statements give the information required by the SEBI Regulations as applicable, and give a trueand fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the balance sheet, of the state of affairs of the Scheme as at March 31, 2008; and

b) in the case of the revenue account, of the surplus for the period ended on that date.

For S.R. BATLIBOI & CO.

Chartered Accountants

per Viren H. Mehta

Partner

Membership No.:048749

Mumbai,April 29, 2008


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MIRAE ASSET MUTUAL FUND - MIRAE ASSET LIQUID PLUS FUND

BALANCE SHEET AS AT MARCH 31, 2008


Schedule 2008

SOURCES OF FUNDS

Unit capital 2(b) & 3 5,905,055

Reserves and surplus 2(b) & 4 13,536

Current liabilities 5 524,992

6,443,583

APPLICATION OF FUNDS

Investments 2(c), 6 & 14 5,616,950

Other current assets 7 826,633

6,443,583

The accompanying schedules are an integral part of this balance sheet.

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MIRAE ASSET MUTUAL FUND - MIRAE ASSET LIQUID PLUS FUND

REVENUE ACCOUNT FOR THE PERIOD FROM MARCH 05, 2008 TO MARCH 31, 2008


Schedule March 05, 2008to March 31, 2008

INCOME

Interest 2(d) & 8 41,529

Profit on sale/redemption of investments, net 2(d) 29

Other income 348

41,906

EXPENSES AND LOSSES

Management fee 9 364

Trusteeship fee 9 20

Custodian service charges 60

Registrar service charges 112

Commission to distributors 456

Audit fee 169

Other operating expenses 236

1,417

Surplus for the period 40,489

Equalisation (debit) 2(e) (4,480)

Transfer from Unit Premium Reserve 0

Income distribution on capital account (19,626)

Income-tax on distributed income (4,432)

Retained surplus, transferred to the balance sheet 4 11,951

The accompanying schedules are an integral part of this revenue account.


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MIRAE ASSET MUTUAL FUND - MIRAE ASSET LIQUID PLUS FUNDSCHEDULES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM MARCH 5,2008 TO MARCH 31, 2008(All amounts in thousands of Rupees unless specified otherwise)

1. BACKGROUND

Mirae Asset Mutual Fund - Mirae Asset Liquid Plus Fund was launched as an open ended debt scheme on March 5,2008. The new fund of the Scheme opened on February 29, 2008 and closed on March 3, 2008.

Mirae Asset Investment Management Company Limited with effect from October 11, 2007 are the sponsors of MiraeAsset Mutual Fund (The Fund)

In accordance with SEBI (Mutual Funds) Regulations 1996 (the SEBI Regulations), the Board of Directors of MiraeAsset Trustee Company Private Limited (the Trustee) has appointed Mirae Asset Global Investment Management(India) Private Limited (the AMC) to manage the Fund’s affairs and operate its schemes

The investment objective of the scheme is to generate returns with low volatility and higher liquidity through aportfolio of debt and money market instruments. The scheme does not guarantee any returns.

The Scheme offers its investors the following plans:












2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared on the accrual basis of accounting, under the historical cost convention, asmodified for investments, which are ‘marked-to-market’. The significant accounting policies, which are in accordancewith the SEBI Regulations and have been approved by the Boards of Directors of the AMC and the Trustee, arestated below.

(a) Determination of net asset value

- The net asset value of the units of the scheme is determined separately for the units issued under thePlans.

- For reporting the net asset values within the portfolio, its daily income earned, including realised profit orloss and unrealised gain or loss in the value of investments, and expenses incurred, are allocated to therelated plans in proportion to their respective daily net assets, adjusted for unit capital movement for theday.

(b) Unit capital

- Unit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactionsrelating to the period ended on that date.

- Upon issue and redemption of units, the net premium or discount to the face value of units is adjustedagainst the unit premium reserve of each Plan, after an appropriate portion of the issue proceeds andredemption payouts is credited or debited respectively to the equalisation account, a mandatory requirementfor open ended mutual fund schemes.

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(c) Investments

Accounting for investment transactions

- Purchase and sale of investments are recorded on the date of the transaction, at cost and sale pricerespectively, after considering brokerage, commission, and fees payable or receivable, if any.

- Right entitlements are recognised as investments on the ex-rights date.

Valuation of investments

- Investments in Central Government securities are stated at their traded prices on the balance sheet date,as released by an independent agency suggested by the Association of Mutual Funds in India (‘AMFI’).

- Investments in fixed income securities are valued as follows:

- Securities traded on the balance sheet date (on the stock exchange where a majority (in terms ofvalue) of these securities are principally traded), are stated at the last traded price.

- Other fixed income investments are stated at their fair value as determined by the AMC in accordancewith the SEBI Regulations and related circulars, based on comparative yields released by anindependent agency suggested by the AMFI. On days where such comparative yields are not released,the fair value is determined based on the traded or purchase price or the comparative yields relatingto the immediately preceding day.

- Treasury Bill, Commercial Paper and Certificate of Deposit are valued at carrying cost, which includesdiscount accrued on an straight line basis over the period to maturity, wherever market price is available thesame is used for valuation.

(d) Revenue recognition

- Interest income is recognised on an accrual basis.

- Profit or loss on sale/redemption of investments is determined on the basis of the weighted average costmethod.

(e) Equalisation account

- The purpose of equalisation account is to maintain per unit amount of a Plan’s share of the Scheme’sundistributed income earned during the accounting period, so that continuing unitholders’ share ofundistributed income remains unchanged on issue or redemption of units under that Plan.

- When units are issued or redeemed, the total undistributed income from the beginning of the accountingyear to the date of the transaction is determined. Based on the number of units outstanding on the transactiondate, the undistributed income associated with each unit is computed. The per unit amount so determinedis credited and debited to the equalisation account on issue and redemption of each unit respectively.

- At period end, the balance in the equalisation account is transferred to the revenue account.

(f) Load

- Load collected is utilised to meet marketing and selling expenses incurred during the year to the extentconsidered appropriate by the AMC. Unutilised amount is carried forward to meet future marketing andselling expenses. However, load collected is credited to the income of the scheme as and when it isconsidered appropriate by the Trustees.


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3. UNIT CAPITAL

Units of Rs 1000 each fully paid up


Issued

-initial public offer 196,000.000 196,000

-during the period 208,629.294 208,629




Issued

-initial public offer - -





Issued






Issued


-during the period 20.000 20


Outstanding, end of period 20.000 20


Issued






Issued






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Issued

-initial public offer 150.000 150





Issued



Redeemed during the period (48.700) (49)



Issued

-initial public offer 4,251,800.000 4,251,800

-during the period 2,592,927.293 2,592,927




Issued






Issued





Total

Issued


-during the period 3,639,572.080 3,639,572



At March 31, 2008, of the above unit capital, no single investor holds more than 25% of the asset under management ofthe Scheme.



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Amount (in ‘000)4. RESERVES AND SURPLUS 2008

Unit premium reserve

Net premium on issue/redemption of units (4,296)

Transferred to Equalisation account (4,480)

Balance, end of period 184

Unrealised appreciation reserve

Change in net unrealised appreciation in value of investments 1,401


Retained surplus

Surplus transferred from revenue account 11,951


Total reserves 13,536

The share of the plans in the reserves and surplus is as follows:

Institutional - Dividend Plan (Daily) 185

Institutional - Dividend Plan (Weekly) 0

Institutional - Growth Plan 310

Regular - Bonus Plan 0

Regular - Dividend Plan (Daily) 36

Regular - Dividend Plan (Weekly) 6

Regular - Dividend Plan (Monthly) 27

Regular - Growth Plan 118

Super Institutional - Dividend Plan (Daily) 6,559

Super Institutional - Dividend Plan (Weekly) 111

Super Institutional - Growth Plan 6,184

13,536

5. CURRENT LIABILITIES

Amount due to AMC

- Management fee 13

Sundry creditors for units redeemed by investors 64,308

Contract for purchase of investments 458,343

Load Pending Utilisation 6

Other current liabilities 2,322

524,992

6. INVESTMENTS

Privately placed debentures and bonds 500,000

Certificates of Deposit 4,867,861

Bills Re-discounted 249,089

5,616,950

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Amount (in ‘000)

(i) All the investments are held in the name of the Scheme, as per clause 7 of Seventh Schedule under

Regulations 44(1) of SEBI (Mutual Funds) Regulations, 1996.

(ii) Aggregate appreciation and depreciation in the value of investments are as follows:

Certificate of Deposit

- appreciation 1,401

- depreciation -

(iii) The aggregate value of investments acquired and sold/redeemed during the period and these amounts as apercentage of average daily net assets are as follows:

Purchases (excluding collateralised lending and fixed deposit)

- amount 12,360,679


Sales / Redemptions (excluding collateralised lending and fixed deposit)

- amount 6,783,766


(iv) The aggregate purchases made by the schemes during the current period and the fair value of such investmentsas at March 31, 2008 in companies which have invested in any scheme of the Fund in excess of five per cent ofthat scheme’s net assets are provided in Attachment I.

(v) Aggregate fair value of non traded investments as on March 31, 2008 500,000

(excluding Commercial Papers, Certificates of Deposit and Government Securities and Bills Re-discounted)

(vi) Investments in the sponsor company and its group companies NIL

7. OTHER CURRENT ASSETS

Balances with banks in current accounts 29,011

Sundry debtors for units issued to investors

- Lateral shift receivable 85,044

- Others 712,456

Outstanding and accrued income 122

826,633

8. INTEREST

Money market instruments 32,714

Debentures and bonds 6,014

Collaterised Lending (reverse re-purchase transaction) 2,801

41,529

9. MANAGEMENT AND TRUSTEESHIP FEE

The Scheme pays fees for investment management services (excluding service tax) under an agreement with theAMC, which provides for computation of such fee as a percentage of Scheme’s average daily net assets, afterexcluding the net asset value of the investments by the AMC in the scheme and net asset value of investment madein other schemes, if any. During the period ended March 31, 2008, the Scheme has paid management fee atannualised average rate of 0.08 per cent.

The Scheme pays fees for Trusteeship services under agreement with the Trustee, which provides for computationof such fee at 0.05 per cent of the Scheme’s average daily net assets, subject to a minimum of Rs. 5 lakhs perannum, divided equally in all the schemes.


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Amount (in ‘000)

10. INCOME AND EXPENDITURE

The total income and expenditure and these amounts as a percentage of the Scheme’s average daily net assets onan anuualised basis are provided below:

Income

- amount 41,906


Expenditure (excluding provision for net unrealised loss and realised loss on sale of investments)

- amount 1,417


11. RELATED PARTY DISCLOSURES

The Scheme has entered into transactions with certain related parties. The information required in this regard inaccordance with Regulation 25(8) of the SEBI Regulations, is provided below.

Name of related party Nature of transactions Period ended Balance as atMarch 2008 March 31, 2008

Mirae Asset Trustee Company Fees for trusteeship services 20 20Private Limited

Mirae Asset Global Investment Fees for investment management 364 364Management (India) Private Limited services

12. NET ASSET VALUE 2008

Net asset value of each unit of Rs 1000 of the Scheme

Institutional - Dividend Plan (Daily) 1001.3985

Institutional - Dividend Plan (Weekly) 1000.0000

Institutional - Growth Plan 1007.1206

Regular - Bonus Plan 1000.7687

Regular - Dividend Plan (Daily) 1001.3986

Regular - Dividend Plan (Weekly) 1001.6996

Regular - Dividend Plan (Monthly) 1006.9391

Regular - Growth Plan 1006.9562

Super Institutional - Dividend Plan (Daily) 1001.3985

Super Institutional - Dividend Plan (Weekly) 1001.1146

Super Institutional - Growth Plan 1007.2417

The net asset value of the Scheme’s unit is determined separately for units issued under the plans after includingthe respective unit capital and reserves and surplus.

13. PRIOR PERIOD COMPARATIVES

As these are the first financial statements of the Scheme since the date of its launch, there are no prior periodcomparatives.

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14. SUPPLEMENTARY INVESTMENT PORTFOLIO INFORMATION AND INDUSTRYWISE CLASSIFICATION

Details of investment portfolio and industrywise classification of the Scheme’s investments in each category ofinvestments at March 31, 2008 are presented below. The industry and company exposures are stated as a percentageof the Scheme’s net assets as at March 31, 2008, as well as the aggregate investments in each investmentcategory.

Industry and Company Particulars Quantity Amount Percentage to Percentage to(in Rs. Net Assets Investment

Thousands) category

DEBENTURES AND BONDS

(a) Private Placed Debentures and Bonds

Finance 5,000,000 500,000 8.44 100.00

* Edelweiss Capital Limited (30/05/2008) 2,500,000 250,000 4.22 50.00

* Reliance Capital Ltd. (23/05/2008) 2,500,000 250,000 4.22 50.00

Total 5,000,000 500,000 8.44 100.00

(b) Listed Debentures and Bonds

CERTIFICATES OF DEPOSIT

Banks 52,761,000.00 4,867,861.41 82.26 95.13

* ICICI Bank Ltd. (27/02/2009) 12,000,000 1,101,034 18.60 21.52

* Federal Bank Ltd. (02/03/2009) 6,833,000 627,864 10.61 12.27

* Federal Bank Ltd. (29/08/2008) 5,000,000 480,520 8.12 9.39

* State Bank Of Mysore (09/03/2009) 5,000,000 457,593 7.73 8.94

* Vijaya Bank (24/03/2009) 5,000,000 457,033 7.72 8.93

* UCO Bank (26/03/2009) 5,000,000 456,055 7.71 8.91

* Axis Bank Limited (18/11/2008) 2,500,000 235,364 3.98 4.60

* State Bank Of Patiala (12/12/2008) 2,500,000 234,261 3.96 4.58

* Industrial Development Bank Of India (26/02/2009) 2,500,000 229,415 3.88 4.48

* Canara Bank (23/03/2009) 2,500,000 229,136 3.87 4.48

* State Bank Of Patiala (10/03/2009) 2,500,000 228,826 3.87 4.47

* Union Bank of India (17/03/2009) 1,280,000 117,180 1.98 2.29

* Allahabad Bank (27/02/2009) 148,000 13,580 0.23 0.27

BILLS RE-DISCOUNTED

Banks 2,500,000 249,089 4.21 4.87

* HDFC Bank Ltd. (15/04/2008) 2,500,000 249,089 4.21 4.87

Total 55,261,000 5,116,950 86.47 100.00

OTHER CURRENT ASSETS 826,633 13.97

TOTAL ASSETS 6,443,584 108.88

LESS: CURRENT LIABILITIES 524,992 8.88

NET ASSETS 5,918,592 100.00

* Non-Traded / thinly traded investments


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ATTACHMENT I


Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

Investment made by the schemes of Mirae Asset Mutual Fund in companies or their subsidiaries that have investedmore than 5% of the net assets of any scheme during the year 2007-2008 are as follows:

Name of Company Scheme(s) in which the Scheme(s) which invested Aggregate Market / Fair Valuecompany has invested in securities of the Investment of Investments

mentioned company made in the as at March 31,company by the 2008scheme during (Rs. In Lacs)

the 2007-2008(Rs. In Lacs)

DSP Merill Lynch Mirae Asset Liquid Fund Mirae Asset Liquid Fund 5,000.00 -Capital Ltd.

HDFC Bank Ltd. Mirae Asset Liquid Fund Mirae Asset Liquid Fund 4,980.48 4,981.78

Mirae Asset Liquid Plus Fund Mirae Asset Liquid Plus Fund 2,490.24 2,490.89

ICICI Bank Ltd. Mirae Asset Liquid Fund Mirae Asset India 378.91 329.30Opportunities Fund

Mirae Asset Liquid Fund 14,109.62 458.76

Mirae Asset Liquid Plus Fund 13,653.36 11,010.34

ICICI Sec Primary Mirae Asset Liquid Fund Mirae Asset Liquid Fund 1,500.00 -Dealership Ltd.

ICICI Securities Ltd Mirae Asset Liquid Fund Mirae Asset Liquid Plus Fund 3,500.00 -

L&T FINANCE LTD Mirae Asset Liquid Fund Mirae Asset Liquid Plus Fund 5,000.00 -

Reliance Industries Mirae Asset Liquid Fund Mirae Asset India 455.13 435.03Ltd. Opportunities Fund

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Persepctive Historial Per Unit Statistics

Particulars Mirae AssetLiquid Plus Fund

5-Mar-08 to31-Mar-08

Units 5,144.09(a) Net Asset Value, per unit

Institutional - Dividend Plan (Daily) 1001.3985Institutional - Dividend Plan (Weekly) 1000.0000Institutional - Growth Option 1007.1206

Regular - Bonus Plan 1000.7687Regular - Dividend Plan (Daily) 1001.3985Regular - Dividend Plan (Monthly) 1006.9392

Regular - Dividend Plan (Weekly) 1001.6995Regular - Growth Option 1006.9538Super Inst - Dividend Plan (Daily) 1001.3985

Super Inst - Dividend Plan (Weekly) 1001.1146Super Inst - Growth Option 1007.2417

(b) Gross Income:

i) Income other than profit on saleof investment, per unit 8.14

ii) profit / (loss) on interscheme sale/transfer

of investment, per unit -iii) profit / (loss) on sale of investment to

third party, per unit 0.01

iv) transfer to Revenue Account from past year’sreserve per unit -

(c) Aggregate of expenses, write offs, amortisation

and charges, per unit 0.28(d) Net unrealised appreciation/(depreciation) in

value of investments 0.27

(e) Net Income, per unit 7.87(f) i ) Highest traded price -

ii ) Lowest traded price -

iii) Highest repurchase price/NAVInstitutional - Dividend Plan (Daily) 1,001.3985Institutional - Dividend Plan (Weekly) -

Institutional - Growth Option 1,006.0213Regular - Bonus Plan -Regular - Dividend Plan (Daily) 1,000.3971

Regular - Dividend Plan (Monthly) -Regular - Dividend Plan (Weekly) -Regular - Growth Option -

Super Inst - Dividend Plan (Daily) 1,001.3985Super Inst - Dividend Plan (Weekly) -Super Inst - Growth Option 1,006.4268


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iv) Highest resale priceInstitutional - Dividend Plan (Daily) 1,001.3985Institutional - Dividend Plan (Weekly) 1,000.0000

Institutional - Growth Option 1,007.1206Regular - Bonus Plan 1,000.0000Regular - Dividend Plan (Daily) 1,001.3985

Regular - Dividend Plan (Monthly) 1,006.9392Regular - Dividend Plan (Weekly) 1,001.6995Regular - Growth Option 1,006.9538

Super Inst - Dividend Plan (Daily) 1,001.3985Super Inst - Dividend Plan (Weekly) 1,000.0000Super Inst - Growth Option 1,006.1203

V) Lowest repurchase price/NAVInstitutional - Dividend Plan (Daily) 1,001.3985Institutional - Dividend Plan (Weekly) -

Institutional - Growth Option 1,002.5518Regular - Bonus Plan -Regular - Dividend Plan (Daily) 1,000.3971

Regular - Dividend Plan (Monthly) -Regular - Dividend Plan (Weekly) -Regular - Growth Option -

Super Inst - Dividend Plan (Daily) 1,001.3985Super Inst - Dividend Plan (Weekly) -Super Inst - Growth Option 1,003.5975

Vi) Lowest resale priceInstitutional - Dividend Plan (Daily) 1,000.0000Institutional - Dividend Plan (Weekly) 1,000.0000

Institutional - Growth Option 1,000.0000Regular - Bonus Plan 1,000.0000Regular - Dividend Plan (Daily) 1,000.0000

Regular - Dividend Plan (Monthly) 1,000.0000Regular - Dividend Plan (Weekly) 1,000.0000Regular - Growth Option 1,000.0000

Super Inst - Dividend Plan (Daily) 1,000.0000Super Inst - Dividend Plan (Weekly) 1,000.0000Super Inst - Growth Option 1,000.0000

vii) Price Earning Ratio NAviii) Ratio of Expenses to Average Net Assets(%) 0.33%ix) Ratio of Gross Income (including unrealised 9.70%

appreciation / depreciation) to AverageNet Assets (%)

Particulars Mirae AssetLiquid Plus Fund

5-Mar-08 to31-Mar-08

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Addendums to the Offer Documents of Mirae Asset Liquid Fund and Liquid Plus Fund

(I) Addendum dated 3rd March 2008:

Declaration of 6th March, 2008 as Business Day

The Board of Directors of Mirae Asset Trustee Company Private Limited (the AMC) has decided to declare 6thMarch, 2008, Thursday as a Business Day for all the schemes of Mirae Asset Mutual Fund.

This addendum forms an integral part of the Offer Document(s)/Key Information Memorandum(s) issued for MiraeAsset India Opportunities Fund, Mirae Asset Liquid Fund and Mirae Asset Liquid Plus Fund, as amended from timeto time.

All other terms and conditions mentioned in the Offer Documents / Key Information Memorandum(s) of theSchemes remain unchanged.

(II) Addendum dated 26th March 2008 (For Mirae Asset Liquid Plus Fund and Mirae Asset India Opportunities Fund):

Addition of new Official Points of Acceptance

Addition of new Official Points of Acceptance for Transactions in Mirae Asset Liquid Plus Fund and Mirae AssetIndia Opportunities Fund of Mirae Asset Mutual Fund w.e.f. March 28, 2008:

Investor service Centres - Karvy Computershare Private Limited, Registrar & Transfer Agent

STATE ADDRESS

Gujarat Karvy Computershare Private Limited204, Star ChambersHarihar ChowkRajkot - 360 001

Rajasthan Karvy Computershare Private Limited201-202, Madhav Chambers, Opp. G.P.O,Chetak Circle, Madhuban,Udaipur-313001

This notice cum addendum forms an integral part of the Offer Document(s)/Key Information Memorandum(s)issued for Mirae Asset Liquid Plus Fund and Mirae Asset India Opportunities Fund, as amended from time to time.

All other terms and conditions mentioned in the Offer Document(s)/Key Information Memorandum(s) of the Schemesremain unchanged. In case you require any further information / assistance, please contact your nearest InvestorService Centre.

(III) Addendum dated 28th March 2008:

Change in Load structure for units allotted on Dividend reinvestment in all Schemes of Mirae Asset Mutual Fund

Notice is hereby given that pursuant to SEBI Circular number SEBI/IMD/ CIR No.14/120784/08 dated March 18,2008, no Entry/ Exit load will be levied on Bonus units and units allotted on Dividend Reinvestment.

The provision of the abovementioned SEBI Circular shall also be applicable to redemption by existing unit holderswith effect from April 1,2008.

This notice cum addendum forms an integral part of the Offer Document(s)/Key Information Memorandum(s) ofthe respective scheme(s) of Mirae Asset Mutual Fund.

All other terms and conditions mentioned in the Offer Document(s)/Key Information Memorandum(s) of all theScheme(s) remain unchanged. In case you require any further information / assistance, please contact yournearest Investor Service Centre.


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STATUTORY DETAILS: Trustee : Mirae Asset Trustee Company Private Limited. Investment Manager : Mirae Asset Global Investment Management(India) Private Limited.(AMC) Sponsor: Mirae Asset Investment Management Company Limited.

RISK FACTORS: Mutual Fund investments are subject to market risk and there is no assurance or guarantee that objectives of the scheme will beachieved. As with any investment in securities, the Net Asset Value (NAV) of the units issued under the schemes can go up or down depending on thefactors and forces affecting the capital/securities markets. Past performance of the Sponsor/Mutual Fund/AMC/Trustee does not indicate the futureperformance of the schemes of Mirae Asset Mutual Fund. The sponsors are not liable or responsible for any loss resulting from the operation of the fundbeyond the initial contribution made by them of an aggregate amount of Rupees one lakh towards setting up of the fund. There is no assuarance orguarantee to unit holders as to the rate of dividend distribution nor that dividends will be paid regularly. Mirae Asset Liquid Fund, Mirae Asset Liquid PlusFund, Mirae Asset India Opportunities Fund, Mirae Asset Global Commodity Stocks Fund and Mirae Asset Interval Fund-Quartely Plan-Series I are onlythe names of the schemes and do not in any manner indicate either the quality of the scheme or its future prospects or returns. Investors in the schemeare not being offered any guaranteed/indicative returns. Please see “Risk Factors”, “Scheme Specific Risk Factors and Special Consideration” and “Rightto limit redemptions” in the scheme Offer Document. Please read the scheme Offer Document/scheme Information Document (SID) carefully beforeinvesting and retain the Offer Document/SID for future references. Unit holders in the scheme are not being offered any guarenteed/assured returns.Offer Document / Key Information Memorandum cum Application form are available at AMC offices/AMC website www.miraeassetmf.co.in/InvestorService Centre / Distributors.